Capital International, the US fund manager with US$1.2 trillion AUM, is re-launching its business in Europe with a push into the private-wealth division, and plans to launch three new funds in the coming months, according to Financial News.
The firm has been expanding its sales force, particularly in continental Europe with the opening of a new office in Milan earlier this year and another is set to open in Zurich, said Simon Levell, vice-president in distribution for Capital International.
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The first of Capital’s new launches in Europe is an income fund called World Dividend Growers, a Luxembourg based Ucits Sicav and a strategy it has run for US institutional clients for about a year.
The fund will be managed by Theodore Samuels, Todd James and Gerald Du Manoir and invest in companies that demonstrate commitment to paying and growing dividends.
The product launch follows the recent hire of Grant Leon, formerly head of sales to global financial institutions at Aberdeen Asset Management, as head of sales for Capital Group’s Private Wealth Distribution business.
Levell said: "We have had a presence in private-wealth management for a while but it has been relatively subdued. About a year and a half ago, we started to look at this and we have made a reasonably substantial long-term investment in building this business.
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By GlobalDataLevell added that Capital’s strategy is to invest in companies with a high potential for future dividend growth, which has the effect of generating similar returns to the broader equity market, but with lower volatility.
Capital Group, the US manager with $1.2 trillion AUM, is also planning to launch a Global Allocation fund, a multi-asset product that Levell described as ‘almost like a diversified-growth-lite fund’, and a European launch for its New World Fund, which invests in companies that are profiting from growth in the developing world, but which may be listed in developed markets.
