Capital Group is set to launch a Ucits-compliant version of its long-running flagship fund in order to tap European investor demand, the US investment giant has announced.
This will see the Capital Group Investment Company of America (ICA) fund launched as a Luxembourg-domiciled approach next month.
The ICA strategy was launched in 1934 for American investors and currently has $75 billion in assets under management. It is one of the oldest and largest funds in operation in the US.
Capital Group’s decision to launch the fund for European investors marks the second major fund to be made Ucits-compliant over the past two years. Having opted to launch a version of the $59 billion Capital Group New Perspectives fund last year.
Commenting on the launch, Richard Carlyle, investment director at Capital Group, said: ‘The strategy’s research-driven, fundamental investment philosophy has remained consistent for eight decades with long-term investment horizons, valuation discipline and a focus on seasoned companies with an emphasis on future dividends.
‘This has provided growth over different market cycles and has typically offered downside protection in depressed or volatile market conditions.’
The new fund will be managed by the same investment team that manages the US strategy. Carlyle added it will be targeted at investors looking for long-term active exposure to US equities as part of a core equity portfolio, or looking to manage downside risk versus a passive investment approach.
Capital Group added the fund marked the next stage in its strategic plan to make its best funds available to European investors, which would also aid business growth across the region.