Capital Group Global Equity (AU) (WHT0044AU) Report & Performance

What is the Capital Group Global Equity (AU) fund?

Capital Group Global Equity (AU) aims to provide long-term investment results exceeding those of the Benchmark. The Fund invests primarily in shares of companies listed on stock exchanges around the world including emerging markets, but will also have some exposure to cash. The Fund can use forward foreign exchange contracts to facilitate settlement of purchases and sales of securities and to mitigate currency risk on specific investments within the portfolio. However, the Fund does not intend to systematically hedge currency risk.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Capital Group Global Equity (AU)

Capital Group Global Equity (AU) Fund Commentary December 31, 2022

Over the quarter, Capital Group Global Equity Fund (AU) returned8.4%1before fees, whilethe index returned 3.9%. Net of fees, the fund returned 8.2%. Over a one-year period, the portfolio returned -12.1% before fees, and -12.8% after fees, compared with the index’s return of -12.5% .

Sector attribution
• Stock selection in the consumer discretionaryand information technology sectors contributed to relative gains.
• All sectors boostedrelative returns except energy. A below-index exposure to the sector detracted on a relative basis.

Contributors and detractors.
• Consumer discretionary: Not holding electric vehicle (EV) maker Teslawas helpful as shares plunged 54% over the quarter, suffering from negative sentiment on CEO Elon Musk’s acquisition of Twitter and his related sales of Tesla stock.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Capital Group Global Equity (AU)WHT0044AUManaged FundsForeign EquityLarge Blend - FundamentalForeign Equity - Large Fundamental IndexDeveloped -World Index190.03 M0.96%0.00%0.2%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Capital Group Global Equity (AU)0.1%0.29%21.36%10.73%5.16%13.11%12.64%12.4%0%-19.46%-44.1%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Capital Group Global Equity (AU)Foreign Equity - Large Fundamental Index4.74%-0.33%NA%NA%NA%0.3115.17%4.5%0.240.93

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Capital Group Global Equity (AU)YesLevel 18 56 Pitt Street Sydney NSW 2000 Australia61-2-8038-0800https://www.capitalgroup.com/au/en-

Product Due Diligence

What is Capital Group Global Equity (AU)

Capital Group Global Equity (AU) is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Fundamental Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Capital Group Global Equity (AU) has Assets Under Management of 190.03 M with a management fee of 0.96%, a performance fee of 0.00% and a buy/sell spread fee of 0.2%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Capital Group Global Equity (AU) has returned 0.1% in the last month. The previous three years have returned 10.73% annualised and 12.4% each year since inception, which is when the Capital Group Global Equity (AU) first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Capital Group Global Equity (AU) first started, the Sharpe ratio is NA with an annualised volatility of 12.4%. The maximum drawdown of the investment product in the last 12 months is 0% and -44.1% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Capital Group Global Equity (AU) has a 12-month excess return when compared to the Foreign Equity - Large Fundamental Index of 4.74% and -0.33% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Capital Group Global Equity (AU) has produced Alpha over the Foreign Equity - Large Fundamental Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Foreign Equity - Large Fundamental Index category, you can click here for the Peer Investment Report.

What level of diversification will Capital Group Global Equity (AU) provide?

Capital Group Global Equity (AU) has a correlation coefficient of 0.93 and a beta of 0.31 when compared to the Foreign Equity - Large Fundamental Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Capital Group Global Equity (AU) and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Capital Group Global Equity (AU) with the Developed -World Index?

For a full quantitative report on Capital Group Global Equity (AU) compared to the Developed -World Index, you can click here.

Can I sort and compare the Capital Group Global Equity (AU) to do my own analysis?

To sort and compare the Capital Group Global Equity (AU) financial metrics, please refer to the table above.

Has the Capital Group Global Equity (AU) been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Capital Group Global Equity (AU)?

If you or your self managed super fund would like to invest in the Capital Group Global Equity (AU) please contact Level 18 56 Pitt Street Sydney NSW 2000 Australia via phone 61-2-8038-0800 or via email -.

How do I get in contact with the Capital Group Global Equity (AU)?

If you would like to get in contact with the Capital Group Global Equity (AU) manager, please call 61-2-8038-0800.

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Capital Group Global Equity (AU). All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - September 30, 2022

Over the quarter, Capital Group Global Equity Fund (AU) returned-2.4% before fees, whilethe index returned 0.3%. Net of fees, the fund returned -2.5%. Over a one-year period, the portfolio returned -14.6% before fees, and -15.4% after fees, compared with the index’s return of -9.8%.

Sector attribution:
• Investment choices in the health careand consumer staples sectors detracted fromrelative results.
• In contrast, stock selection in the materials and utilities sectors added to relative returns.

Contributors and detractors
• Health care: Shares of Seagenslid after the drugmaker lost an arbitration dispute with Daiichi Sankyo over the use of its antibody-drug conjugate technology.
• Consumer staples: Shares of Ocado fellafter the online supermarket slashed its sales and earnings guidance for the 2022 fiscal year.
• Materials: Chile-based miner Sociedad Quimica Y Minera saw its shares climbon strong demand and ongoing pricing strength in lithium.
• Utilities: Shares of electricity generator and distributor AES rose on the back of strong second-quarter results, with the company beating earnings and revenue estimates.

Performance Commentary - June 30, 2022

Over the quarter, CapitalGroup Global Equity Fund (AU) returned-8.3%1before fees, whilethe index returned -8.4%2 .Net of fees, the fund returned -8.6%. 3 Over a one-year period, the portfolio returned -11.4%1 before fees, and -12.2%3 after fees, compared with the index’s return of -6.5% .

Contributors and detractorsfor Q2 2022:

• Consumer discretionary: Not holding Tesla helped as its shares slid 38% against a deteriorating economic outlook, with worries on the potential for demand to slow, especially as the electric vehicle company continued to raise prices for its models in response to increasing input costs, pressuring affordability for its customers.

• Financials: Insurer AIA Group’s shares gained 5% on easing coronavirus restrictions. In April, the company said its businesses were regaining momentum in areas where coronavirus infections had peaked.

• Information technology: Shares of Dutch semiconductor equipment maker ASMLlost 25% during the quarterfollowing worries over a potential slowdown in demand for the semiconductor industry alongside continuing supply chain constraints and cost pressures.

• Materials: Brazilian miner Vale saw its shares fall 20% during the quarter. Industrial metals prices fell given waning Chinese demand and rising concerns over the risk of a global recession amidcentral banks’ aggressive response to elevated inflation.

Performance Commentary - March 31, 2022

Over the quarter, Capital Group Global Equity Fund (AU) returned -9.4% before fees, while the index returned -8.4%. Net of fees, the fund returned -9.6%. Over a one-year period, the portfolio returned 5.3% before fees, and 4.3%3 after fees, compared with the index’s return of 11.6%.

Performance Commentary - September 30, 2021

U.S. equities eked out a small gain despite elevated volatility late in the quarter. Investors weighed the prospects of the recovering consumer against concerns over rising inflation and interest rates. A fraught political environment also contributed to September’s 5% decline, the worst monthly return since March 2020. Gross domestic product grew at an annualised 6.7% rate in the second quarter, supported by ongoing stimulus measures and the continued reopening of businesses. In August, the unemployment rate declined to 5.2%, a pandemic-era low, while consumer spending ticked up.

Over the quarter, Capital Group Global Equity Fund (AU) returned 1.4%1 before fees, while the index returned 4.0%2. Net of fees, the fund returned 1.1%.3 Over a one-year period, the portfolio returned 26.5%1 before fees, and 25.3%3 after fees, compared with the index’s return of 27.8%2.

Performance Commentary - April 30, 2021

For the month ended 30 April 2021, Capital Group Global Equity Fund (AU) returned 3.8%1 before fees while the index returned 3.2% 2. Net of fees, the fund returned 3.7%3. For the 12-month period, the portfolio returned 28.3%1 before fees, and 27.0%3 after fees, compared to the index’s return of 23.0%2.

• Stock selection in the consumer discretionary sector contributed positively to relative returns. A position in online casino solutions provider Evolution Gaming Group was the portfolio’s top relative contributor after it released an impressive set of first quarter 2021 results, which boosted its shares to end the month 30% higher. The Sweden-based company’s overall revenues were up 105% year-on-year while organic growth in its core live business accelerated from 50% to 60% as regulatory momentum remains positive in the US while areas of growth are appearing in the Philippines, Japan and Latin America.

Performance Commentary - December 31, 2020

Over the quarter, Capital Group Global Equity Fund (AU) returned 8.1%1 before fees, while the index returned 5.7%2. Net of fees, the fund returned 7.8%.3 Over a one-year period, the portfolio returned 7.9%1 before fees, and 6.9%3 after fees, compared with the index’s return of 5.7%2.

Sector attribution for Q4 2020:
• Stock selection in the information technology and industrials sectors drove returns on a relative basis.
• However, the selection of stocks in the consumer discretionary and real estate sectors weighed on relative results.

Contributors and detractors for Q4 2020:
• A large position in semiconductor equipment manufacturer ASML proved beneficial as the stock ended the period up 27% on better-than-expected business margins. While the company lowered its sales guidance for extreme ultraviolet (EUV) lithography machines for financial year 2021, increasing evidence of a recovery in the dynamic random access memory (DRAM) space has improved investor sentiment towards the stock.
• Shares of aerospace giant Airbus jumped 45% over the quarter due to strong order and delivery numbers in October. The launch of several COVID-19 vaccines has also brought life back to the severely impacted aviation industry due to the increased possibility of lockdown restrictions being lifted sooner rather than later.
• In contrast, Ocado Group, a British online grocer, was a leading detractor on a relative basis. Its shares fell 17% even though Ocado raised its full-year profit forecast on the back of strong retail sales growth. A key reason for the negative response from investors was due to weak growth in order numbers, which suggests that shopping behaviour could be about to normalise.
• Shares of data center real estate investment trust (REIT) Equinix dropped 6% during the quarter on profit taking but still ended the year 24% higher. Lockdown restrictions globally have prompted a surge in demand for storing and distributing data, benefitting the business of data center REITS.

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