The New World vehicle is the third fund to be made available to European investors as part of Capital Group’s 2015 initiative to expand the investor base of its most successful US strategies.
It follows the $500m (£383m, €447m) Capital Group New Perspective Fund launched in October last year and the Capital Group Investment Company of America, introduced this June.
Capital Group, which currently has $1.4tn in assets under management, has a 30-year history of investing in emerging markets.
Its New World EM fund, now worth $26bn, was launched in the US in 1999 and harnesses what the firm describes as a “domicile-agnostic approach” to target local emerging market businesses and global multinationals that benefit from developing world growth.
Throughout its lifetime, the New World fund has achieved a return of 7.4% per annum in dollar terms, according to the firm.
“Since its launch, the New World strategy has outpaced both emerging market and global equities, demonstrating that its combination of local and global companies can offer an attractive opportunity for investors looking for a more resilient way to capture the potential of developing economies,” explained Capital Group investment director Richard Carlyle.
Offering the New World strategy to European investors was a logical next step, said Hamish Forsyth European president of Capital Group Companies Global, especially given the firm has been serving clients in the region since 1962.
“This new fund launch represents a further stage in our strategic plan to make available the best of Capital Group’s strategies to European investors and to support the growth of our business activities across the region.”
