US Equity | Capital Group

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CAPITAL APPRECIATION

US Equity

Vehicle: Collective Investment Trust, Separate Account

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Overview

Objective: Provide long-term growth of capital and income.

  • Strategy inception date: 1966
  • Assets in strategy (millions): $192.6
  • Benchmark: S&P 500 Index
  • Invests in: U.S. equities
  • Minimum account size (millions):
    • Collective investment trust: $5
    • Separate account: $50

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
  • Our investment process begins with intensive company scrutiny by our analysts, who do all their own research. These analysts formulate recommendations based on proprietary models for earnings estimates and valuations, and conduct regular one-on-one meetings with all levels of management at companies in their coverage. Each year our investment analysts make thousands of visits to companies located throughout the country
  • Analysts and managers look for long-term growth, cyclical improvement, turnarounds or deep value situations
  • Analysts as a group are given a portion of portfolio assets to manage, each in their particular fields of experience and knowledge — so in addition to making investment recommendations to portfolio managers, analysts trade based on their investment convictions
  • The equity analysts and portfolio managers also work with fixed-income and macroeconomic teams as well as our large team of international equity investment professionals when examining potential investments. We believe interaction between investment professionals with different perspectives, styles and regional coverage yields an informational advantage
  • Our research process and The Capital System℠ help to diversify risk by helping us understand our holdings and the investment universe very well. Every new idea is discussed and debated by the U.S. investment group, including the portfolio managers, bringing to light bull and bear arguments and increasing the likelihood of identifying and considering all of the key issues that might affect the investment
  • The Capital System creates a strategy that is highly diversified by company and by sector because we rely on multiple stock pickers in every portfolio
  • Our independent global investment control group monitors compliance with internal and portfolio guidelines, while the investment committee oversees the overall investment of the portfolio
  • Our legal and compliance team helps make certain we adhere to regulations in the markets in which we invest

History of U.S. Equity at Capital Group

Capital began managing domestic equity portfolios for institutional clients in 1968. Our portfolios draw upon a deep pool of research conducted by over 160 investment professionals (as of June 30, 2017).
 


Portfolio Management Team

 

 

 

 

 

 

View investment results data

 

 

 


Resources

 


Additional Reports

Annual Report (PDF)

Endowments/Foundations

Tax-Exempt Trusts Annual Report (PDF)

 


Profile

US Equity Profile (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 the Capital Group U.S. 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 of highest institutional fee results are calculated by deducting the current highest investment management fees that may be applicable to an institutional account in the composite from the gross results. Composite net of highest fee results are calculated by deducting the current highest investment management and advisory fees that may be applicable to certain accounts in the composite from the gross results. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size.

Composite returns prior to January 1, 1993 include the investment returns of Capital Group Private Client Services accounts managed by institutional portfolio managers with the same mandate.

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 US Equity Trust (US).

S&P 500 Index results reflect income reinvested.

The Standard & Poor’s 500 Composite Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2017 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC.

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.