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Posts From Capital Group

US debt ceiling deadline could disrupt money markets

US debt ceiling deadline could disrupt money markets

🕔05:06, 27.Jul 2021

Can there be such a thing as too much money? There is certainly a huge amount of money sloshing through the US financial system, which is straining the shortterm funding market and threatening to push short-dated Treasury yields below zero.

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Market’s view of transitory inflation in the US may be premature

Market’s view of transitory inflation in the US may be premature

🕔10:31, 22.Jul 2021

Key takeaways Treasury yields and Treasury Inflation-Protected Securities have moved lower, despite higher inflation. Fed officials now project two rates hikes by the end of 2023 and appear to be ready to begin tapering of its asset purchasing program as

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The future of the financial sector: The analyst view

The future of the financial sector: The analyst view

🕔10:21, 20.Jul 2021

Key takeaways Regulatory and digital disruption have been headwinds to the financial services industry, but tech innovation offers opportunities for both new entrants and incumbents to survive and thrive. The rising wealth of Asian emerging economies, the growth in derivatives

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Long-term perspective on markets and economies – June 2021

Long-term perspective on markets and economies – June 2021

🕔16:57, 6.Jul 2021

A reawakening of the global economy — boosted by pentup demand and unprecedented government stimulus — has stoked investor fears of higher inflation. But those fears may be exaggerated amid ongoing weakness in the labour market and the slowing pace

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Implications of the US Federal Reserve’s June 16 announcement

Implications of the US Federal Reserve’s June 16 announcement

🕔11:58, 5.Jul 2021

Below is a brief recap of the views of Tim Ng and Tom Hollenberg, fixed income portfolio managers and members of Capital’s interest rates team, regarding the Fed’s announcement on 16th June. Fed officials projected two interest rate increases by

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Big Tech Stocks: How to gauge regulatory risk

Big Tech Stocks: How to gauge regulatory risk

🕔08:16, 17.Jun 2021

When it comes to America’s biggest technology companies, it seems like regulatory risk has never been higher. Most large technology platforms are facing pressure from US and European authorities, while lawmakers on Capitol Hill seem more inclined to doing something

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Why emerging markets local currency debt in 4 charts

Why emerging markets local currency debt in 4 charts

🕔08:05, 16.Jun 2021

As emerging markets matured over the last couple decades, many countries began issuing debt, denominated in their respective local currency, rather than US dollars. This has created a valuable sub-asset class worth more than 3 trillion US dollars, alongside US

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Why active investing is an attractive approach for Japanese equities

Why active investing is an attractive approach for Japanese equities

🕔16:34, 8.Jun 2021

The Bank of Japan’s (BoJ) recent decision to adjust its ETF purchase programme has given investors plenty to think about from the impact on asset prices to the longer term future of the country’s monetary easing policies. In this paper,

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Quick-take on the US inflation outlook

Quick-take on the US inflation outlook

🕔16:47, 26.May 2021

US inflation surprised to the upside in April with the core consumer price index rising 0.9% in April and headline CPI up 0.8%1. This materially changes the maths on inflation. Even if the monthly trend in inflation decelerates to 0.15%,

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Global corporate bonds Q&A with Damir Bettini: selectivity remains key

Global corporate bonds Q&A with Damir Bettini: selectivity remains key

🕔10:18, 23.May 2021

A year on from the height of the COVID-19 crisis, credit spreads have returned to their pre-pandemic tight levels. Does this present an asymmetric return profile for corporate bonds? The scope for further spread tightening is limited, in our view.

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Amid a US economic boom, how high can rates go?

Amid a US economic boom, how high can rates go?

🕔14:02, 19.May 2021

Amid a US economic boom, how high can rates go? The possibility of an economic boom this year has stoked worries about higher inflation and prompted a sharp selloff in US Treasuries. We spoke with fixed income portfolio manager Pramod

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Optimism is justified, but Fed patience is likely

Optimism is justified, but Fed patience is likely

🕔16:20, 6.May 2021

Quarterly macro and market insights: Optimism on the US economic outlook increased as the COVID-19 vaccination rollout accelerated, and the new Biden administration embarked on expansive fiscal policy. The US$1.9 trillion American Rescue Plan Act was signed into law in

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Why invest in EM local currency debt?

Why invest in EM local currency debt?

🕔13:05, 16.Apr 2021

Disappointing US dollar bond returns in EM local currency debt has led to a decline in flows into the asset class over the past decade. In this paper, we discuss the key reasons to invest in EM local currency debt, some of the factors behind the recent weakness in the asset class returns and prospects for the asset class going forward. 

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Taking a long-term view

Taking a long-term view

🕔13:26, 14.Apr 2021

Since our founding in 1931, Capital Group has been owned primarily by the people who work here every day. Private ownership is a cornerstone of our ability to think long term when it comes to planning and investing. Among other things, it allows us to avoid the …

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A distinctive approach to investing

A distinctive approach to investing

🕔12:02, 12.Apr 2021

A distinctive approach to investing  Capital Group has been investing around the globe for more than 60 years. Its unique multiple-portfolio manager approach, The Capital SystemSM, sets it apart from many other global asset managers. Rob Lovelace – who is

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The post-COVID-19 world, with Capital Group’s Night Watch

The post-COVID-19 world, with Capital Group’s Night Watch

🕔12:05, 6.Apr 2021

Rembrandt’s masterpiece “The Night Watch” is the inspiration for a multidisciplinary research process at Capital Group. Everyone in the painting is looking in a different direction and it is this gathering of multiple perspectives that summarises our approach to gaining a deeper understanding of market disruptions, assessing the risks and evaluating the opportunities that arise during times of extreme crisis.

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Capturing Asia’s secular growth opportunities: Q&A with Christopher Thomsen

Capturing Asia’s secular growth opportunities: Q&A with Christopher Thomsen

🕔16:32, 29.Mar 2021

Asia’s emergence as the world’s key engine of growth has been one of the most compelling investment stories in recent times. The newly launched Capital Group Asian Horizon Fund (LUX) (CGAH)1 is designed to tap into this attractive opportunity set and, in this Q&A, portfolio manager Christopher Thomsen explains why …

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A look into the future: The strengthening case for investing in Asia

A look into the future: The strengthening case for investing in Asia

🕔15:51, 24.Mar 2021

It has been more than a year since COVID-19 was declared a global pandemic. The start-stop lockdowns that followed the first wave of the coronavirus outbreak made it particularly tough for many businesses and individuals to adapt.

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COVID and beyond: navigating the markets

COVID and beyond: navigating the markets

🕔10:12, 18.Mar 2021

We share the views of some of our portfolio managers and economists on navigating the equity and fixed income markets in the year ahead and beyond. They also share how the last year has influenced long-term developments in economic and market outlooks. 

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China: Policy and investment implications under Biden

China: Policy and investment implications under Biden

🕔12:25, 16.Mar 2021

The first 100 days in power for any new presidential administration is never easy. With US-China relations at arguably their lowest point in 50 years, the administration of US President Joe Biden will have to make some difficult policy decisions that could affect the balance of the world’s two largest economies. How could the relationship evolve over the next four years?

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Will India be the next high-growth emerging market?

Will India be the next high-growth emerging market?

🕔08:34, 4.Mar 2021

When Facebook paid $5.7 billion for a 10% stake in Jio Platforms, the digital technology arm of Indian conglomerate Reliance Industries, it signalled Silicon Valley’s growing enthusiasm for India’s consumer market. Facebook’s main interest in the deal with India’s largest mobile network was to process payments for millions of local retailers via its WhatsApp messaging service, which …

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What will be the key factors driving EM debt markets in 2021?

What will be the key factors driving EM debt markets in 2021?

🕔12:44, 26.Feb 2021

The market seems very positive on the global backdrop — do you agree with the consensus views? How will this impact emerging market debt?

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Will the Fed’s new policy framework bring higher inflation?

Will the Fed’s new policy framework bring higher inflation?

🕔12:52, 23.Feb 2021

In January, the US Federal Reserve affirmed its commitment to low interest rates for a prolonged period of time under its new monetary policy framework. If anything, with its renewed focus on “broad-based and inclusive” maximum employment and a goal of achieving inflation that averages 2% over time, the …

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The world in 2030: Investing for the next decade

The world in 2030: Investing for the next decade

🕔15:16, 19.Feb 2021

The world in 2030 may seem a long way off, but at Capital Group we spend a lot of time thinking about the distant future. “Imagining life in 2030 is not a hypothetical for me,” notes Capital Group vice chairman Rob Lovelace, a sentiment echoed by many of his colleagues. “In the portfolios that I manage, my average holding period is about eight years, so I’m living that approach to investing.”

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Is Big Tech in big trouble?

Is Big Tech in big trouble?

🕔15:11, 15.Feb 2021

Is Big Tech in big trouble? Is there such a thing as being too successful, too influential and just too big? We may find out in the months and years ahead as the world’s largest technology and consumer tech companies

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Video: Capital Ideas Talks with Martyn Hole

Video: Capital Ideas Talks with Martyn Hole

🕔16:37, 11.Feb 2021

Capital Ideas Talks with Martyn Hole Investment Director, Martyn Hole, shares his view on the outlook for equity markets. He explains why the backdrop is broadly supportive of equity valuations, considers the prospects for different sectors, examines how events of

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Europe’s global leaders offer some attractive opportunities

Europe’s global leaders offer some attractive opportunities

🕔14:31, 10.Feb 2021

With the pandemic-induced shutdown of 2020 — which caused the worst recession since the Great Depression — behind us, solid growth is expected across major economies in 2021, according to the International Monetary Fund (IMF).

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What do the unprecedented monetary and fiscal measures mean for inflation?

What do the unprecedented monetary and fiscal measures mean for inflation?

🕔16:21, 9.Feb 2021

As the largest vaccination programme in history commences, risk markets appear to be ignoring the logistical challenges or near-term downside growth risks from tighter lockdowns imposed after infection rates in Northern Hemisphere countries soared over the winter. With the S&P at or close to all-time highs and many …

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5 reasons why EM equities could power ahead in 2021

5 reasons why EM equities could power ahead in 2021

🕔08:21, 8.Feb 2021

Has the tide finally turned for emerging markets equities after a decade of trailing US markets? It’s a question we often hear. After two consecutive years of solid gains for the benchmark MSCI Emerging Markets Index, emerging markets appear well positioned for further growth. The US dollar has weakened, commodity prices have …

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Quarterly macro and market insights

Quarterly macro and market insights

🕔16:51, 5.Feb 2021

Amid rising optimism, preparing for setbacks as recovery unfolds is prudent. The rollout of vaccinations has bolstered optimism around the outlook for the global economy in 2021. Even so, the trajectory of the pandemic will continue to hold sway over near-term

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Introducing the Capital Group European Opportunities strategy

Introducing the Capital Group European Opportunities strategy

🕔10:56, 4.Feb 2021

Capital Group European Opportunities (LUX) will be available to investors in Asia and Europe with its launch as a Luxembourg-domiciled fund in February 2021. The fund will offer access to a longstanding European equity strategy, originally launched as a segregated account in 1992. The fund will be managed by …

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Reset or Rebound?

Reset or Rebound?

🕔14:34, 29.Jan 2021

To what extent is the world really changing and what are the long-term investment implications? Responding to the transformative events and trends of the COVID-19 crisis, we sought the views of three …

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In the money: Financial exchanges hit the sweet spot

In the money: Financial exchanges hit the sweet spot

🕔14:31, 21.Jan 2021

Financial sector headlines are often dominated by banks and insurers. But there is one area that has emerged as a steady grower and dividend payer: financial exchanges. Exchanges’ gains contrast against steep declines in the broader financials sector, where traditional banks in particular have grappled with ultra-low rates and a slowing global economy. Over the …

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What lies ahead for the US economy?

What lies ahead for the US economy?

🕔14:21, 20.Jan 2021

It really is different this time. While this is not the first pandemic the US has faced, our reaction to it — the restrictions placed on portions of the US economy, and the policy response — are truly unprecedented. First, there are lots of reasons to be optimistic about the US economy over the longer term. Official productivity statistics likely understate the impact of innovation …

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Municipal bond outlook: Silver lining to COVID storm clouds

Municipal bond outlook: Silver lining to COVID storm clouds

🕔10:03, 19.Jan 2021

Municipal bond outlook: Silver lining to COVID storm clouds Commuter trains with seats to spare at rush hour. Vacant dorm rooms. And, of course, hospital wards, stretched to capacity. The effects of COVID-19 on all our lives have been plain

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As assets have grown, our size has not been a hindrance to our highest convictions

As assets have grown, our size has not been a hindrance to our highest convictions

🕔01:41, 14.Jan 2021

As assets have grown, our size has not been a hindrance to our highest convictions Asset growth and size – equity, January 2021 Size and scale afford Capital Group important advantages. Our global reach, reputation and financial strength help us

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Long-term perspective on markets and economies

Long-term perspective on markets and economies

🕔12:54, 24.Dec 2020

Long-term perspective on markets and economies 2021 Outlook: Turning points on the road to recovery. We may one day look back at 2021 as a major turning point for the global economy, public health, politics and how we live and

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Update on global citizenship 2020

Update on global citizenship 2020

🕔09:14, 24.Dec 2020

At the outset of 2020, none of us could have anticipated just how timely the topic of citizenship would be. We are now living in a world in which social distancing has become the norm as we try to halt

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Emerging market debt outlook for 2021

Emerging market debt outlook for 2021

🕔11:26, 17.Dec 2020

Investment Insights  2020 was a volatile year for emerging markets (EM). EM debt faced underperformance during the first half of the year, a sharp retracement and outperformance relative to developed markets during the early summer, and subsequent bouts of intermittent

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Global corporate bonds Q&A with Damir Bettini: a time for selectivity and stringent credit analysis

Global corporate bonds Q&A with Damir Bettini: a time for selectivity and stringent credit analysis

🕔11:04, 14.Dec 2020

Investment Insights   Key takeaways Global corporate bonds have recovered strongly since the peak of the sell-off experienced in March. With credit spreads having tightened considerably since then, I believe the rally was justified for technical reasons due to unprecedented levels

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Emerging market investing: Allocation to the fastest-growing markets

Emerging market investing: Allocation to the fastest-growing markets

🕔15:07, 11.Dec 2020

Investment Insights  While each crisis is different, what is striking about this global pandemic is that (excluding China) the impact on emerging market assets appears to be more dire than the spread of the virus itself to those countries. The

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Elections and a vaccine: Implications for fixed income investors

Elections and a vaccine: Implications for fixed income investors

🕔14:50, 11.Dec 2020

Investment Insights   The US election results and the announcement of a potential COVID-19 vaccine from Pfizer have been pivotal events in markets, initially providing a substantial boost to risk assets. Mixed economic data and a rapidly rising rate of coronavirus

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Emerging markets: Into the new decade

Emerging markets: Into the new decade

🕔14:40, 10.Dec 2020

Investment Insights  Coronavirus-induced lockdowns have wreaked havoc on the global economy. Among emerging and developing countries, those that are heavily dependent on global trade, tourism, commodity exports, and external financing are likely to be the hardest hit, according to the

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Emerging market equity investing and the role of geographical boundaries

Emerging market equity investing and the role of geographical boundaries

🕔14:52, 9.Dec 2020

Investment Insights  As emerging markets continue their rise towards becoming one of the key drivers of global growth, improved capital and information flow have brought to the fore alternative ways of investing in the asset class. In this paper, we

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Are disruptors the next generation of defensive stocks?

Are disruptors the next generation of defensive stocks?

🕔11:09, 8.Dec 2020

Investment Insights  2020 has seen significant headwinds. Sectors that have traditionally been viewed as defensive are no longer considered safe havens. Energy is one example. This high yielding sector has been among the hardest hit during the COVID-19 pandemic and

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China’s biopharma industry moves closer to inflection point

China’s biopharma industry moves closer to inflection point

🕔15:37, 7.Dec 2020

Investment Insights  In the global scramble to develop a COVID-19 vaccine, brand-name biopharmaceutical giants in the United States and Europe appear to have promising candidates. But there are also several lesser known companies playing a role in helping produce a

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Emerging market debt in the new decade: an active approach

Emerging market debt in the new decade: an active approach

🕔08:13, 4.Dec 2020

Investment Insights  Emerging market debt (EMD) has already broadened and deepened significantly in the last few decades and as the asset class has developed, it has become more appealing to a broader investor base. Issuance has increased, thereby improving liquidity.

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Is the dollar’s stumble a sign of things to come?

Is the dollar’s stumble a sign of things to come?

🕔14:34, 3.Dec 2020

Investment Insights  Is the U.S. dollar entering a new multiyear bear cycle, or is it just experiencing an episode of weakness in an already decade-long bull run? It’s a question at the top of investors’ minds given the dollar’s steady

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5 years old, but wiser than its years

5 years old, but wiser than its years

🕔13:04, 2.Dec 2020

Capital Group New Perspective Fund (LUX)  It’s been five years since Capital Group launched its New Perspective strategy in a Luxembourgdomiciled vehicle, giving investors in Europe and Asia access to a core global equity strategy with a successful 47-year track

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Capital Group Global High Income Opportunities (LUX) (GHIO) Q&A with Rob Neithart

Capital Group Global High Income Opportunities (LUX) (GHIO) Q&A with Rob Neithart

🕔12:45, 2.Dec 2020

Q&A with Rob Neithart, Fixed Income Portfolio Manager Based in Los Angeles We have experienced an extraordinary year so far. How did GHIO navigate the volatility and what have you done in the portfolio since then? Going into the period of

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