Capital Group to launch US equity growth fund for European investors

Capital Group has unveiled plans to launch its US equity growth strategy, Capital Group AMCAP (Lux), for European and Asian investors.

It will mirror the firm’s US strategy that invests in quality growth companies with a proven track record, clear business models and strong management teams that have potential for sustainable growth.

A bottom-up fundamental stock selection will be applied.

AMCAP will be the fifth strategy to be available to European and Asian investors under a Luxembourg-domiciled Ucits format.

Natasha Braginsky Mounier, investment director at Capital Group, said: “We believe that the strategy is an attractive long-term way to gain US equity exposure but is also well positioned in today’s environment.

“The US economy remains robust and although the market multiples are higher than historical averages, at an individual company level we are still finding many quality growth companies whose prospects for expansion and earnings growth more than justify their valuations.

“Many of these are global businesses, so they are generally benefiting from less upward pressure on the US dollar.”

Hamish Forsyth, European president of Capital Group, said: “We continue to implement our strategy to bring the best of Capital Group to Europe and Asia and this is an exciting addition to our fund line-up. We remain committed to building a long-term, sustainable business across the region.”

Capital Group had some $1.5trn of assets under management as of end March 2017.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is deputy editor and French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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