Dividend growth fund launched for Capital Group Sicav
Capital Group, the US manager with $1.2trn AUM, has launched World Dividend Growers, a subfund for the Capital International Fund, which is a Luxembourg based Ucits Sicav.
World Dividend Growers will invest in companies that demonstrate commitment to paying and growing dividends. The strategy intends to provide returns exceeding the market, but with lower volatility over the long term.
The fund will be managed by Theodore Samuels, Todd James and Gerald Du Manoir. The three three portfolio managers have an average of 27 years’ experience, of which some 25 years with Capital Group – which will place initial seed money of $25m.
The investment process is based on proprietary research. Capital Group’s global team of analysts research company business models, dividend policy, history and payout ratios to identify securities with what they feel is the preferred combination of yield and dividend growth.
Capital Group launched its first fund in the US in 1934, with a similar dividend focus.
The product launch follows the recent appointment of Grant Leon (pictured) as head of Sales for Capital Group’s Private Wealth Distribution business. Leon joined from Aberdeen Asset Management, and is tasked with building sales relationships across Europe on behalf of Capital Group, which historically has seen the majority of its sales flow from its home market.
Leon said: “Many investors today are looking for equity-like returns with lower volatility and a growing stream of income. Focusing on income from equities is something we’ve been doing at Capital for 80 years, but we believe that analysing current dividend yield is a limited indicator of success, and it’s the dividend growers that have provided superior long-term returns. Supplementing our fund offering by launching World Dividend Growers will help our clients to achieve their long-term objectives, especially given the low interest rate environment. It will also complement our existing range, and add to our strengths in the private wealth arena across Europe, where we’ve been operating since the early 1960s.”