Multi-thematic approach to sustainable investing powered by fundamental research
27 February 2024: Capital Group, the world’s largest active asset manager (1), with assets under management of more than US$2.5 trillion (2), today launches three global, multi-thematic sustainable funds designed to meet demand from investors in Europe and Asia.
The Luxembourg-domiciled UCITS funds include a global equity fund – Capital Group Sustainable Global Opportunities Fund (LUX), a fixed income fund – Capital Group Sustainable Global Corporate Bond Fund (LUX), and a multi-asset fund – Capital Group Sustainable Global Balanced Fund (LUX) (3).
In building its sustainable funds, the firm identified seven sustainable investment themes mapped to the United Nations Sustainable Development Goals (UN SDGs) (4), which capture a large universe of companies that can offer compelling long-term investment opportunities. By investing across multiple sustainable themes, investors can access a broad range of investment opportunities and potentially benefit from diversification. Capital Group’s approach to sustainable investing considers companies that it views as being already aligned to the UN SDGs, as well as those transitioning to increase positive alignment over the long term (5).
Jessica Ground, Global Head of ESG at Capital Group, comments: “The UN estimates there is a US$4.3 trillion (6) annual financing gap to deliver against the UN SDGs. We believe it will take a wide range of innovative companies to bridge this gap. Companies making improvements in important areas such as ‘financial inclusion’, the ‘energy transition’ or ‘health and well-being’, will play a significant role in the world’s transition to a more sustainable future and can offer compelling long-term opportunities for investors.”
Guy Henriques, President of Europe and Asia Client Group, Capital Group, said: “We are delighted to introduce Capital Group’s sustainable funds to investors in Europe and Asia. We believe our global, multi-thematic approach to constructing these funds broadens and deepens the investment opportunity set for investors. The three funds, in core asset classes, respond to the evolving needs of our clients in Europe and Asia, and gives them a clear proposition to consider in sustainable investing.” Capital Group’s sustainable investing capabilities draw on its deep, fundamental research, leveraging a global team of 470+ investment professionals and 40+ ESG specialists, including data scientists and technology specialists (7).
The funds are classified as Article 8 under the EU Sustainable Finance Disclosure Regulation.
