Emerging Markets Equity | Capital Group

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CAPITAL APPRECIATION

Emerging Markets Equity

Vehicle: Collective Investment Trust, Separate Account

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Overview

Objective: The investment objective is long-term growth of capital by investing primarily in companies in developing countries.

  • Strategy inception date: 1986
  • Assets in strategy (billions): $4.7
  • Benchmark: MSCI Emerging Markets Investable Market Index
  • Invests in: Emerging markets equities
  • Minimum account size (millions):
    • Separate Account: $100

Assets in strategy as of March 31, 2017.

For a DC collective investment trust, plan size of $250 million may be used to satisfy the minimum account size requirement.


Approach
  • A core belief in independent research, a long-term focus and diverse viewpoints through The Capital System℠ define our investment process
  • As investment managers, we have found value throughout the developing world as markets have evolved, but our approach has remained the same since the inception of our strategy more than 25 years ago
  • Most analysts at Capital have made research their careers, establishing long-standing relationships with key corporate managers and policymakers over the course of several business and market cycles
  • We thoroughly analyze the prospects of each company regardless of its market index weighting, gathering information from on-site visits in order to determine each company’s business prospects, management and competitive position within a local and global context
  • We aim to fully understand the social, economic, cultural and political factors that contribute to the long-term outlook for each company as well as the markets and industries within which they operate
  • For example, investments in materials, energy and technology companies may be based on research by several dedicated emerging markets analysts, combined with extensive discussion among developed-market analysts, fixed-income and macroeconomic analysts, and several managers, all looking at similar data points from different perspectives
  • These exchanges also help identify the best ways to invest in longer-term trends such as infrastructure development, urban growth and growing consumer demand in the emerging markets
  •  We have a comprehensive framework for addressing risk
    • Our research process and The Capital System help diversify the portfolio
    • Capital’s independent global investment control group monitors compliance with portfolio guidelines
    • Our legal and compliance team helps make certain we adhere to regulations in the markets in which we invest

History of Emerging Markets at Capital Group

Capital’s first emerging markets equity fund was launched in 1986, more than one year prior to the inception of the MSCI Emerging Markets Index. We continue to have one of the largest dedicated emerging markets research efforts in the investment management business. Our emerging markets team is an integral part of Capital’s broader global investment group, closely interacting with the developed-market equity, debt and private equity research teams and benefiting from a cross-pollination of investment ideas as markets and economies become more globalized.
 


Portfolio Management Team

 

 

 

 

 

 

View investment results data

 

 

 


Resources


Additional Reports

Defined Benefit Plans

Annual Report (PDF)

Defined Contribution Plans

Annual Report (PDF)

Endowments/Foundations

Tax-Exempt Trusts Annual Report (PDF)

 

 

 


This material is designed for use solely by Qualified Purchasers, institutional investors and consultants. It may not be disseminated to or used by individual plan participants or retail investors.

The Capital Group companies manage equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.

Any collective investment trusts (“CITs”) available under the strategy shown are maintained by Capital Bank and Trust Company (“trustee”), which has retained an affiliate to serve as investment adviser to the trustee for the CITs.

This information supplements or enhances required or recommended disclosure and presentation provisions of the GIPS® standards, which if not included herein, are available upon request. GIPS is a trademark owned by CFA Institute.

All data as of June 30, 2017, unless otherwise specified.

Returns are in USD. Periods greater than one year are annualized. Returns reflect the reinvestment of dividends, interest and other earnings.

Composite returns reflect Capital Group Emerging Markets Equity Composite.

Composite returns are preliminary and net of withholding taxes on dividends, interest and capital gains. Actual withholding tax rates vary according to the country of denomination and tax status of each portfolio.

Composite net returns are calculated using the current highest management fees for institutional investors. Actual investment returns net of management fees may differ depending on, among other things, the applicable fee schedule and portfolio size.

The equity breakdown by revenue reflects the fund’s publicly traded equity holdings and excludes cash (and fixed income securities, if applicable). Underlying revenue data were compiled by MSCI and account for disparities in the way companies report their revenues across geographic segments. MSCI breaks out each company’s reported revenues into country-by-country estimates. MSCI provides revenue data figures based on a proprietary, standardized model. Revenue exposure at the fund and index level was calculated by using FactSet, which takes these company revenue exposures and multiplies by the company’s weighting in the portfolio and index. In this breakdown, Israel has been included in Europe.

Composite risk characteristics are preliminary and gross of management fees. The analysis is based on monthly data, and periods greater than one year are annualized.

Portfolio reflects Capital Group Emerging Markets Equity Common Trust (US) DB.

MSCI Emerging Markets IMI reflects S&P/IFC Global Composite Index with gross dividends reinvested from May 31, 1986 to December 31, 1987, MSCI Emerging Markets Index with gross dividends reinvested to December 31, 2000, MSCI Emerging Markets Index with net dividends reinvested to November 30, 2007 and MSCI Emerging Markets Investable Market Index with net dividends reinvested thereafter.

Emerging Markets Index – Standard reflects S&P/IFC Global Composite Index with gross dividends reinvested from May 31, 1986 to December 31, 1987, MSCI Emerging Markets Index with gross dividends reinvested to December 31, 2000 and the MSCI Emerging Markets Index with net dividends reinvested thereafter.

Index reflects MSCI Emerging Markets IMI. Source: MSCI. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.

Each index is unmanaged.

Totals may not reconcile due to rounding.

Securities offered through American Funds Distributors, Inc.


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses or the collective investment trust's Characteristics statement, which can be obtained from a financial professional, Capital or your relationship manager, and should be read carefully before investing.