Global Equities
KEY BENEFITS
A multi-asset portfolio that embraces simplicity
This multi-asset fund is designed to offer simplicity. It aims to capture growth, preserve capital and provide income in a way your clients can easily understand.
Avoiding exposure to complex instruments
Invests primarily in liquid, high-quality equities and bonds with low correlation to enhance diversification
A combination of growth and income
This well-diversified portfolio invests for capital growth, capital preservation and income
Has mitigated downside amid market volatility
This fund has a history of enhanced resilience during equity market declines1
1. Since inception on 31 January 2014, the fund has outpaced the MSCI All Country World Index when the index has fallen more than 10%.
THINGS TO CONSIDER
Working toward stable, long-term growth while considering risks
While investing in global equities and bonds offers investors growth potential, it still carries general investment, equities, fixed income and other risks that may cause your investment to decline or suffer losses.
Risk considerations
WHY INVEST IN THIS FUND
A fund that aims to provide a straightforward and resilient return profile.
Global Allocation is a multi-asset portfolio designed to deliver growth, capital preservation and income over the long term.
The experience to deliver
The investment team behind this fund
Hilda L. Applbaum
San Francisco
29 years with Capital
Anirudh Samsi
San Francisco
19 years with Capital
Tomonori Tani
San Francisco
19 years with Capital
Philip Chitty
London
20 years with Capital
Andrew A. Cormack
London
5 years with Capital
Reflects current portfolio manager team as at 31 December 2023.
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Additional information on how this fund can help meet your clients’ needs
- A relatively simple global multi-asset portfolio
By primarily investing in liquid, high-quality equities and investment grade bonds from around the world, avoiding significant exposure to exotic instruments, this straightforward approach offers investors a portfolio with easy-to-understand drivers. - A balanced cocktail of growth, capital preservation, and income
Global Allocation invests in quality equities for capital growth and income, and investment grade bonds to attain capital preservation and income. This long-only multi-asset portfolio offers investors a prudent way to capture growth and income with an element of downside resilience. - A history of enhanced resilience during equity market declines
By combining lowly-correlated equities and bonds in a well-diversified portfolio, Global Allocation has offered relative stability in times of volatility1.
1. Since inception on 31 January 2014, the fund has outpaced the MSCI All Country World Index when the index has fallen more than 10%.
The information in relation to the index is provided for context and illustration only. The fund is an actively managed UCITS. It is not managed in reference to a benchmark.
Past results are not a guarantee of future results.
We are currently living in a turbulent world with rising uncertainty over geopolitical risks and inflation. This means your clients may wish to look to a relatively simple strategy that could offer balance over time:
- When a fund has a relatively straightforward and highly liquid structure, clients can easily understand the drivers of the portfolio’s returns, which is highly beneficial in the current market environment.
- Global Allocation is designed to deliver a balance of growth, capital preservation and income over time, which makes it suitable for investors in pursuit of multiple objectives.
- With its enhanced resilience amid equity market volatility since inception1, this fund could be a solution for your clients today, given the current climate.
Global Allocation is positioned to address near- and long-term opportunities and challenges by having exposure to:
- Companies/issuers that have strong earnings growth and dividend growth potential
- Companies/issuers with strong pricing power to combat inflation
1. Since inception on 31 January 2014, the fund has outpaced the MSCI All Country World Index when the index has fallen more than 10%.
The fund seeks the balanced accomplishment of three objectives: long-term growth of capital, conservation of principal and current income by investing in equities and bonds as well as other fixed income securities from around the world.
Global Allocation combines on-the-ground, bottom-up research with top-down macro insights:
- The fund accesses Capital Group’s extensive equity and fixed income research capabilities, with our global team of analysts working together to identify promising opportunities across equity and fixed income.
- Our portfolio managers utilise high-conviction ideas derived from a blend of fundamental and macro research, as well as a combination of bottom-up and top-down views, to construct a well-diversified portfolio.
Capital Group has more than 50 years of multi-asset investment experience. These capabilities date back to the 1970s, when we launched our first multi-asset fund in the US.
The Global Allocation portfolio manager team have an average of 28 years' investment experience. They have a deep understanding of market complexities, with the individual freedom to invest in their highest convictions.
Taking the long view
We base our investment decisions on a long-term perspective, aligning our goals with the interests of your clients. Superior, long-term returns are our goal. Global Allocation managers are rewarded for their results, not the level of assets they manage.
Breadth of experience
Our process enables individual investment professionals to act on their highest convictions while limiting the risk associated with isolated decision-making. We draw on their diverse knowledge and experience to build the portfolio.
Deep, fundamental research
The scale and scope of our proprietary research, built over 90 years, allows us to uncover what we believe to be compelling investment opportunities for our clients. Investment analysts conduct thousands of research visits globally every year. The outcomes of these are then combined with comprehensive macro analysis. This approach has been essential to the results we have delivered to our investors.
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organisation; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
Find out more about what this fund has to offer
WHY CAPITAL GROUP
A leader in global investing
For more than 90 years, we’ve been searching the world for long-term opportunities, making Capital one of the oldest global investors today.
Global investing credentials
US$2.5T
in total assets managed
28 years
average investment experience of our portfolio managers
US$496B
in multi-asset strategies
Data as at 31 December 2023
High conviction investments. Diverse perspectives.
The Capital SystemTM is designed to produce highly diverse portfolios that deliver consistent long-term results, a smoother ride and management continuity over a range of market conditions.
We believe ESG is key to successful investing. So we consider environmental, social and governance issues before we invest.
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We're here with the support and solutions you need.
Don't hesitate to reach out if you have questions or need assistance.
Álvaro Fernández Arrieta
Managing Director
Financial Intermediaries
Iberia
+34 91 788 8021
Alvaro.Fernandez-Arrieta@capitalgroup.com
Mario Gonzalez Perez
Managing Director
Financial Intermediaries
Iberia
+34 91 788 8022
Mario.Gonzalez@capitalgroup.com
César Ozaeta Francés
Associate Business Development Manager
Financial Intermediaries
Iberia
+34 91 788 8026
Cesar.Ozaetafrances@capitalgroup.com
Maite Muñoz Garrabé
Business Development Associate
Financial Intermediaries
Iberia
+34 91 788 8025
Maite.Munoz@capitalgroup.com
Risk factors you should consider before investing:
- This material is not intended to provide investment advice or be considered a personal recommendation.
- The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment.
- Past results are not a guarantee of future results.
- If the currency in which you invest strengthens against the currency in which the underlying investments of the fund are made, the value of your investment will decrease. Currency hedging seeks to limit this, but there is no guarantee that hedging will be totally successful.
- Some portfolios may invest in financial derivative instruments for investment purposes, hedging and/or efficient portfolio management.
- There are additional Bonds, Counterparty, Derivative instruments, Emerging markets, Equities, Liquidity and Operational risks associated with this fund.
Fund risks
Bonds risk: The value of bonds can change as a result of interest rate changes – typically when interest rates rise, bond values fall. Funds investing in bonds are exposed to credit risk. A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless.
Counterparty risk: Other financial institutions provide services to the fund such as safekeeping of assets, or may serve as a counterparty to financial contracts such as derivatives. There is a risk the counterparty will not meet their obligations.
Derivative instruments risk: Derivatives are financial instruments deriving their value from an underlying asset and may be used to hedge existing exposures or to gain economic exposure. A derivative instrument may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.
Emerging markets risk: Investments in emerging markets are generally more sensitive to risk events such as changes in the economic, political, fiscal and legal environment.
Equities risk: The prices of equity securities may decline in response to certain events, including those directly involving the companies whose securities are owned by the fund, overall market changes, local, regional or global political, social or economic instability and currency fluctuations.
Liquidity risk: In stressed market conditions, certain securities held by the fund may not be able to be sold at full value, or at all. This could cause the fund to defer or suspend redemptions of its shares, meaning investors may not have immediate access to their investment.
Operational risk: The risk of potential loss resulting from inadequate or failed internal processes, people and systems or from external events.
Data as at 31 December 2023 and attributed to Capital Group, unless otherwise specified.
In USD terms, net of fess, Z share class.
Index is 60% MSCI All Country World Index (net dividends reinvested) / 40% Bloomberg Global Aggregate Bond Total Return Index. Source: MSCI