US asset manager Capital Group is opening its emerging market strategy to investors outside the US with the launch of a new fund planned for next month.
The “New World” investment strategy, which currently has $26bn (£19.9bn) assets, will be carried out by the Capital Group New World fund, domiciled in Luxembourg.
Like its US-equivalent strategy, the fund has a flexible, domicile-agnostic approach looking at the growth potential of developing economies, combining local emerging market businesses with global multinationals present in the region.
The launch follows two other funds recently opened to European investors: the New Perspective fund and the Investment Company of America.
Capital Group investment director Richard Carlyle says: “Capital Group began managing the world’s first emerging market equity fund in 1986, at the invitation of the World Bank, and has since continued to develop its investment insights in emerging markets.
“The New World strategy offers a global approach to emerging markets – allowing us to access growth potential via both locally domiciled businesses and global players.”
Hamish Forsyth, European president of Capital Group Companies Global, says: “This new fund launch represents a further stage in our strategic plan to make available the best of Capital Group’s strategies to European investors and to support the growth of our business activities across the region.”