why capital group?
Our offerings apply a long-term approach that seeks to provide superior outcomes for clients in the future.
international
⬤ J.P. Morgan U.S. Real Broad Effective Exchange Rate Index (CPI) 2010=100 (LHS)
⬤ Ratio of MSCI EAFE/MSCI USA total returns (RHS)
Refer to disclosure1
The currency exchange effect* has dented international and global equity portfolio results in the last decade. This both explains returns and opens up opportunities to find value in international companies.
dividends
S&P 500 Index annualized returns (%)
⬤ Dividend contribution to total return
⬤ Annualized total return (including dividends)
Refer to disclosure2
Historically, dividends have been a consistent source of return in various markets and provided some downside cushion in difficult periods.
selective growth
⬤ S&P 500
⬤ Consumer discretionary†
⬤ Information technology†
⬤ Communication services†
Refer to disclosure3
Narrow markets can offer positive returns — like in our current environment. But if markets broaden going forward, so too can the opportunities for investable companies.
1Source: London Stock Exchange Group. Data as of December 31, 2023. All data based to 100 as of 1/31/10 to match the J.P. Morgan U.S. Real Broad Effective Exchange Rate Index (CPI) 2010=100. J.P. Morgan U.S. Real Broad Effective Exchange Rate Index (CPI) 2010=100 is representative of the relative price of the U.S. dollar, and ratio of MSCI EAFE/MSCI USA total return is representative of the relative strength of international markets.
*Currency exchange effect describes how when one currency is converted to another, the revenue of a parent company's subsidiaries outside of the parent company's country can be heightened or diminished depending on the current exchange rate between those currencies when converting to the currency of the parent company's country.
2Source: Capital Group. As of December 31, 2023.
3Sources: Morningstar, FactSet. Sector returns reflect total returns in USD. As of December 31, 2023.
†The sectors listed had the weakest results among all the GICS (Global Industry Classification Standard) sectors in the S&P 500 in 2022.
PRODUCTS
Our equity offerings can help your clients pursue their investment goals. The ongoing, rigorous investment analysis of The Capital SystemTM helps distinguish them from their peers.
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Index definitions and key terms:
S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization weighted index that is designed to measure developed equity market results, excluding the United States and Canada. Results reflect dividends net of withholding taxes. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
MSCI USA Index is a free float-adjusted, market capitalization-weighted index that is designed to measure the U.S. portion of the world market. This index is unmanaged and includes reinvested dividends and/or distributions, but does not reflect sales charges, commissions, expenses, or taxes. Results reflect dividends gross of withholding taxes.
J.P. Morgan U.S. Real Broad Effective Exchange Rate Index (CPI) 2010=100 measures the value of the USD against a weighted average basket of global currencies to show relative strength/weakness indexed to 100, with 2010 as the indexing date.
Dividends are a way in which companies may choose to distribute capital to investors. These dividends are typically paid out in cash, and it’s common for payments to occur on quarterly schedules, but companies are not legally obligated to issue dividends or adhere to a schedule until they officially announce the dividend.