Funds in the Capital Group use the “Capital System,” by which portfolios
are divided into portions that are managed independently by investment
professionals with diverse backgrounds, ages, and investment approaches.
Capital Group U.S. Equity Fund managers
Christopher D. Buchbinder,
Barry S. Crosthwaite, and
Mark Hickey thus oversee a portfolio that tends to be rather style-agnostic.
The sector mix is different than its benchmark, the S&P 500 Composite
Index. At the end of June, top sectors included information technology at
17.8%, financials at 15.2%, and healthcare at 14.9%.
The fund holds over 70 names, with the top 10 making up just over a third
of the fund’s holdings. Valuation, while not cheap, looks significantly
more attractive than the S&P 500 or its peers. As of June 30, top
holdings included drug manufacturer
AbbVie Inc. (NYSE: ABBV), telco
Verizon Communications Inc. (NYSE: VZ), biotech
Amgen Inc. (NASDAQ: AMGN), conglomerate
Berkshire Hathaway Inc. (NYSE: BRK.A), and insurance company
American International Group Inc. (NYSE: AIG).
The managers take a longer-term outlook to investing that’s reflected by
their annual portfolio turnover, which has averaged approximately
35% for the past three years.
Capital Group is well known for its high level of manager co-investment in
the funds. At the end of June, 97% of the firm’s managers had more than $1
million invested in their mandates, aligning their interests with their
Costs are very reasonable, with an MER of 2.04%, which is well below the
Given the emphasis on risk management, I wouldn’t expect this to shoot the
lights out, but I would expect it to deliver index-like or better returns
with volatility levels that are slightly better than the broader market.
All these factors align to make this a very compelling reason to consider
this fund for your U.S. equity exposure.
Capital Group U.S. Equity Fund
Capital International Asset Management (Canada)
Large Cap Blend
Christopher Buchbinder; Barry Crosthwaite; Mark Hickey, all since January
CIF847 (front-end load)
Dave Paterson, CFA, is the Director of Research, Investment Funds for
D.A. Paterson & Associates Inc., a consulting firm specializing in providing research and due
diligence on a variety of investment products. He is also the publisher
Dave Paterson’s Top Funds Report,
offering regular commentary and in-depth analysis of Canada’s top
investment funds. He uses a unique analytical approach to identify
funds with strong, risk-adjusted returns, and regularly publishes his
insights and analyses in Fund Library.
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only and is not intended as personalized investment advice.