Capital Group has launched three Luxembourg-domiciled undertaking for collective investment in transferable securities (Ucits) funds for investors in Europe and Asia, the firm announced in a press release on 27 February 2024. The funds include a global equity fund, a fixed income fund and a multi-asset fund that are built around seven sustainable investment themes based on the United Nations’ Sustainable Development Goals (SDGs).
“The UN estimates there is a $4.3trn annual financing gap to deliver against the UN SDGs. We believe it will take a wide range of innovative companies to bridge this gap,” commented Jessica Ground, global head of ESG at Capital Group. “Companies making improvements in important areas such as ‘financial inclusion’, the ‘energy transition’ or ‘health and well-being’, will play a significant role in the world’s transition to a more sustainable future and can offer compelling long-term opportunities for investors.”
The funds centre around the themes of health & well-being, energy transition, sustainable cities & communities, responsible consumption, education & information access, financial inclusion, and clean water & sanitation. They are classified as article 8 funds under the EU’s Sustainable Finance Disclosure Regulation, which means that they promote environmental and/or social characteristics.
“We believe our global, multi-thematic approach to constructing these funds broadens and deepens the investment opportunity set for investors,” added Guy Henriques, president of Europe and Asia client group at Capital Group. “The three funds, in core asset classes, respond to the evolving needs of our clients in Europe and Asia, and gives them a clear proposition to consider in sustainable investing.”
Founded in Los Angeles in 1931, Capital Group registered its first fund in Luxembourg more than 50 years ago. It opened its office in the grand duchy over 10 years ago, where it employed 78 associates as of the end of June 2023. Worldwide, the firm has more than $2.5trn of assets under management, as of 31 December 2023.