Asset Management Awards for Excellence 2020 – Best Fund Provider – Global Equity

2020 Winners

 

Best Fund Provider – Global Equity

Capital Group

Jeik Sohn
managing director, financial intermediaries, Asia, Capital Group

It is with utmost privilege and gratitude that our organisation accepts the award for Best Global Equity Provider for two years running. More than just an award, I believe this is a recognition that our focus on fundamental, bottom-up investing pays off. Helping investors succeed has helped us grow. And the key to achieving that is by remaining true to our values and approach. As a private firm with a true long-term mindset, we can offer investors differentiated investment solutions, corporate stability, and long-term investment excellence.
In sharp contrast to 2018 — when global equities buckled under pressure — 2019 saw an encouraging rebound in stocks across the board. Through rigorous, bottom-up stock selection, Capital Group once again showcased its strength as a long-term equity investor, continuously achieving both consistent growth of capital and income for clients.

Many strategies in the market claim to have the necessary attributes or characteristics to be able to withstand the test of times, but very few possess the track record of Capital Group’s flagship fund — New Perspective strategy — which has over 45 years of experience navigating multiple market cycles with resounding success.

In terms of results over the past 12 months (in US dollar terms), despite the brutal sell-off in global equities in the fourth quarter of 2018, Capital Group New Perspective Fund (LUX) was still able to trend up by 1.9% by the end of August 2019, compared to MSCI ACWI’s -0.3%.

The distinctive investment process of Capital Group made the asset manager stand out amongst peers. Comprising seven portfolio managers with diverse backgrounds, ages, and investment approaches and styles, the team enabled the fund to embed both high conviction and diversity in its portfolio construction, as the seven managers managed their dedicated sleeves within the portfolio while collaborating on asset allocation decisions.

Investing is more than alpha generation; it involves risk management as well. Capital Group took this one step further by not only looking at investment risk, but also operational and strategy-level risks. The team designed a customised risk framework to provide positioning, scenario analysis and risk analytics for portfolios. Further, it took ESG issues into consideration in an integrated manner, alongside other investment indicators.

Capital Group’s success could not be achieved without a dedicated business development team. To support the growing Asian business, the firm made tremendous efforts to deepen its intermediary business and now has four senior intermediary managers in both Hong Kong and Singapore.

Backed by strong investment and distribution teams, Capital Group delivered consistent outperformance and fund inflow with high-quality servicing, thus becoming the well-deserved recipient of Best Fund Provider – Global Equity.