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Capital Group replicates US fund in Luxembourg fund range

DividendsUS fund manager Capital Group has launched a fund investing in companies around the world that pay dividends and offer attractive growth prospects.

The Luxembourg-domiciled Ucits fund is based on and managed by the same investment team as the Capital World Growth and Income (WGI) strategy in the US, which was launched in 1993.

The Luxembourg launch is part of the firm’s plans to build its Luxembourg fund range using strategies that have proven successful in the US, investment director Julie Dickson said.

According to the firm – which has $1.9 trillion in assets under management – the fund addresses key challenges such as slowing global growth and increased volatility.

“The WGI strategy has been designed for investors who want to participate in the dynamism of global equity markets, but who have struggled to find a balance between capturing growth opportunities while maintaining some downside protection,” Dickson said.

The fund has seven portfolio managers who are all personally invested in the fund. A portion of the portfolio’s assets is managed by research analysts.

The Los Angeles-headquartered firm recently appointed Marco Büchler as managing director for financial intermediaries in Switzerland as part of its ongoing growth strategy in the country.

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