Capital Group Sustainable Funds
Global asset manager Capital Group has launched three sustainable funds aimed at providing investors with sustainable asset allocation opportunities in global equity markets and bond markets.
The three sustainable funds are Capital Group Sustainable Global Opportunities Fund, Capital Group Sustainable Global Corporate Bond Fund and Capital Group Sustainable Global Balanced Fund. These three funds all belong to Article 8 funds under the classification of European Sustainable Finance Disclosure Regulation (SFDR).
Related Post: Amundi Launches Net Zero Strategy ESG Funds
Sustainable Investing Methods in Capital Group
To achieve environmental and social sustainable development goals in 2030, there is a global funding gap of US$4.3 trillion every year. Therefore, many asset management companies are required to invest in the field of sustainable development and provide investors with asset allocation opportunities. Capital Group believes that the United Nations Sustainable Development Goals (SDGs) can provide asset allocation guidance and creates seven sustainable investment themes to reduce the concentration risk and investment style deviation of a single theme strategy. These topics include energy transition, sustainable cities, clean water, and many other aspects.
During the investment process, Capital Group focuses on selecting companies that are already aligned with the SDGs, as well as those companies that are actively promoting the transition of their business towards the SDGs. If 50% of a company’s revenue is consistent with SDGs activities, it can be included in the investment scope. After defining the investment scope, the investment manager will select some assets to construct an investment portfolio.
Introduction to Capital Group Sustainable Funds
Capital Group releases three sustainable funds together. The information is as follows:
The Capital Group Sustainable Global Opportunities Fund seeks to invest in equities around the world to obtain long-term capital growth. These companies will make a positive contribution to environmental and social goals. The fund’s benchmark is the MSCI AC World Index.
The Capital Group Sustainable Global Corporate Bond Fund seeks to invest in investment-grade bonds issued by global companies to obtain long-term capital growth and dividends. These companies will make a positive contribution to environmental and social goals. The fund’s benchmark is the Bloomberg Global Aggregate Corporate Total Return Index.
The Capital Group Sustainable Global Balanced Fund aims to invest in global equity markets and bond markets using a 60:40 ratio, with its benchmarks being the MSCI AC World Index (60%) and the Bloomberg Global Aggregate Corporate Total Return Index (40%).
Reference:
