Last updated: 11:42 / Monday, 29 March 2021
Secular growth trends

Capital Group Launches a High Conviction Asian Equity Fund

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  • Asia is fast becoming "a global economic powerhouse" and its rapidly growing middle class have brought about "a huge rise in the demand" of products and services
  • The strategy is a high conviction portfolio, investing across the market cap and valuation spectrum to achieve long-term capital growth
  • The fund invests in domiciled companies just as well as those outside the region that are plugged into the growth drivers within the Asian market

Capital Group has announced the launch of its Capital Group Asian Horizon Fund (LUX), which seeks to capture Asia’s secular growth opportunities with a global perspective.

In a press release, the asset manager highlighted that Asia is fast becoming "a global economic powerhouse" and its rapidly growing middle class have brought about "a huge rise in the demand" of every kind of products and services, from healthcare and financial services to luxury goods and online entertainment. That's why Capital Group Asian Horizon Fund (LUX) is designed to meet "growing investor appetite" for Asia-related stocks as global investors become increasingly aware of opportunities that arise from secular growth trends in the region.

The strategy is a high conviction portfolio, investing across the market cap and valuation spectrum to achieve long-term capital growth. The fund invests in companies with at least two-thirds of net assets based in Asia ex-Japan, including onshore China A-shares, but it also has the flexibility to invest in companies domiciled outside of the region, where Capital Group’s analysts believe that exposure to Asia will be a key driver of their future growth prospects.

By combining local and global investments, the asset manager created the fund to fully unlock access to "the most exciting growth opportunities" in Asia ex-Japan.

“Asia is becoming a global economic powerhouse and is home to some of the world’s most innovative and fastest-growing companies. Its multi-dimensional growth story is unique, and we are well placed to ensure that investors can tap into domiciled opportunities just as well as those outside the region that are plugged into the growth drivers within the Asian market. With our proven track record of being early investors in Asia’s emerging leaders, we believe that Capital Group Asian Horizon Fund (LUX) is a great example of helping investors to identify champions.”

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