Capital Group World Dividend Growers (AU) aims to achieve long-term total returns by investing in quality companies worldwide that provides an attractive combination of current yield and dividend growth. The Fund will invest in companies that the Investment Manager believes have the potential to provide combinations of current yield and dividend growth over the long term. The Fund invests primarily in shares of companies listed on stock exchanges around the world including emerging markets but will also have 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.
The portfolio returned 8.1% before fees over the quarter, while the index returned 4.1%. Net of fees, the portfolio returned 7.9% over the quarter. Over a one-year period, the portfolio returned -3.9% before fees, and -4.7% after fees, compared with the index’s return of -12.5%.
Relative contributors
• Consumer discretionary Not holding electric vehicle maker Tesla was helpful as its shares plunged 54%, suffering from negative sentiment towards CEO Elon Musk’s acquisition of Twitter and his related sales of Tesla stock.
• Information technology Not owning Apple was beneficial as its shares fell 6%, suffering from worries over signs of weakness in the smartphone market and the outlook for iPhone demand.
What is Capital Group World Div Growers (AU) Capital Group World Div Growers (AU) is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Income 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 World Div Growers (AU) has Assets Under Management of 5.71 M with a management fee of 0.95%, a performance fee of 0.00% and a buy/sell spread fee of 0%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Capital Group World Div Growers (AU) has returned 1.39% in the last month. The previous three years have returned 8.72% annualised and 9.35% each year since inception, which is when the Capital Group World Div Growers (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 World Div Growers (AU) first started, the Sharpe ratio is 0.72 with an annualised volatility of 9.35%. The maximum drawdown of the investment product in the last 12 months is -4.27% and -11.99% 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 World Div Growers (AU) has a 12-month excess return when compared to the Foreign Equity - Large Income Index of -5.79% and 0.2% 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 World Div Growers (AU) has produced Alpha over the Foreign Equity - Large Income Index of -0.52% in the last 12 months and 0.1% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - Large Income Index category, you can click here for the Peer Investment Report.
What level of diversification will Capital Group World Div Growers (AU) provide?
Capital Group World Div Growers (AU) has a correlation coefficient of 0.96 and a beta of 1.03 when compared to the Foreign Equity - Large Income 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 World Div Growers (AU) and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Capital Group World Div Growers (AU) with the Developed -World Index?
For a full quantitative report on Capital Group World Div Growers (AU) compared to the Developed -World Index, you can click here.
Can I sort and compare the Capital Group World Div Growers (AU) to do my own analysis?
To sort and compare the Capital Group World Div Growers (AU) financial metrics, please refer to the table above.
Has the Capital Group World Div Growers (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 World Div Growers (AU)?
If you or your self managed super fund would like to invest in the Capital Group World Div Growers (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 World Div Growers (AU)?
If you would like to get in contact with the Capital Group World Div Growers (AU) manager, please call 61-2-8038-0800.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Capital Group World Div Growers (AU). All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - September 30, 2022 • The portfolio returned -2.0%1 before fees over the quarter, while the index returned -0.3%.2 Net of fees, the portfolio returned -2.1%3 over the quarter. Over a one-year period, the portfolio returned -5.4%1 before fees, and -6.3%3 after fees, compared with the index’s return of -10.9%2.
Relative contributors:
• Communication services: Not owning Google parent Alphabet was beneficial as its shares lost 12%, suffering from worries over the outlook for advertising spending amid signs of slowing economic growth and increasing fears over the risk of a global recession in 2023.
• Energy: A holding in oil and natural gas producer EOG Resources was a positive as shares rose 3%, buoyed by good second-quarter results, together with soaring natural gas prices. EOG announced a special dividend after quarterly revenue surged past forecasts, boosted by firmer production and higher realised prices for oil and natural gas.
• Materials: An above-index position in commodities producer Sociedad Química y Minera de Chile SA proved beneficial as shares ended the quarter 18% higher. The company showed robust growth across its business line with demand for lithium being particularly strong as a result of strong electric vehicle sales.
Performance Commentary - June 30, 2022 The portfolio returned-2.5%1 before fees over the quarter, while the index returned -7.9%. 2 Net of fees, the portfolio returned -2.7%3 over the quarter.Over a one-year period, the portfolio returned -3.3%1 before fees, and -4.2%3 after fees, compared with the index’s return of -8.0%2 . All sectors across the portfolio contributed to relative returns during the quarter although there were still a number of key detractors on a company level.
Performance Commentary - March 31, 2022 The portfolio returned -7.0%1 before fees over the quarter, while the index returned -8.4%.2 Net of fees, the portfolio returned -7.2%3 over the quarter.
Contributors and detractors Industrials: Stock selection contributed positively to relative returns. Raytheon Technologies rallied on Russia’s invasion of Ukraine amid signs that the US and various European countries would be increasing military spending in response.
Information technology: Below-index exposure to the sector and the selection of stocks proved beneficial in Q1. Not holding Shopify helped, as shares fell 51%. Shares sold off amid worries that Shopify’s growth would slow significantly in 2022, and following disappointing fourth-quarter 2021 results.
Financials: Stock selection in the sector weighed on relative returns. A position in Kazakhstan-based Kaspi.kz JSC hurt, as shares declined 57%. The company has been negatively impacted by unrest in the country which led to an internet outage and the closure of banks.
Real estate: The selection of stocks detracted from relative returns. A large relative position in Digital Realty Trust, Inc. proved negative. Shares lost ground following strong performance in the prior quarter and against adifficult capital market environment in the first quarter of 2022, given increasing borrowing costs and heightened risk aversion.
Performance Commentary - July 31, 2021 For the month ended 31 July 2021, Capital Group World Dividend Growers (AU) returned 1.8%1 before fees, while the index returned 2.8%2. Net of fees, the fund returned 1.8%3. For the 12-month period, the portfolio returned 25.3%1 before fees, and 24.1%3 after fees, compared to the index’s return of 29.9%2.
• Investments in information technology stocks detracted from relative results. Not holdings Apple detracted on a relative basis as its shares rose 6% over the month. Given growing worries about the spread of the Delta variant of COVID-19, the 10-year US Treasury yield fell by 25 basis points to 1.22% over the month. As a result, investors demand for growth-oriented stocks increased, including technology companies such as Apple.
Stock selection in the materials sector also hurt relative results. Brazil-based miner Vale detracted on a relative basis. The miner engages in the exploration, production and sale of iron ore and nickel. Although the company said it had experienced temporary production setbacks at iron ore mines, it reported that it was on track to increase output in the second half of 2021. Vale announced record second-quarter adjusted earnings before interest, taxation, depreciation and amortisation, driven by increased sales of iron ore and improved market conditions.
Performance Commentary - June 30, 2021 The portfolio returned 7.9%1 before fees over the quarter, while the index returned 9.0%. 2 Net of fees, the portfolio returned 7.6%3; the income return was 1.1%, while the price return was 6.5%.5 Overall, the portfolio’s holdings delivered growing dividends, with 91% either raising or maintaining their dividends during the 12-month period ended 30 June 20214.
Contributors and detractors Real Estate: Stock selection was positive on a relative basis. A position in wireless infrastructure provider Crown Castle International was helpful as shares rose 14%. Consumer discretionary: A below-index exposure to the sector as well as stock selection contributed positively to relative returns. Exposures to luxury good brands Kering and Richemont were beneficial as shares rose 26% and 23%, respectively. Both companies enjoyed a strong rebound in Asia, although sales remained subdued in Europe.
Information technology: Stock selection and a below-index exposure to the sector detracted from relative returns. A position in semiconductor specialist Intel detracted after it reported a year-on-year fall in Q1 for its data centre business. Not holding Nvidia also hurt has its shares rose 50%.
Performance Commentary - December 31, 2020 The portfolio returned 4.5%1 before fees over the quarter, while the index returned 6.5%. 2 Net of fees, the portfolio returned 4.3%3; the income return was 0.6%, while the price return was 3.6%.5.
Overall, the portfolio’s holdings delivered growing dividends, with 80% either raising or maintaining their dividends during the 12-month period ended 31 December 20204.
Contributors and detractors:
Information technology: Stock selection drove relative returns. Shares of Taiwan Semiconductor Manufacturing Company (TSMC) rallied after the world’s largest semiconductor foundry raised its full-year revenue forecast. TSMC believes that demand tied to 5G smartphone launches and high-performance computing to may continue to drive growth.
Consumer discretionary: Not holding shares of e-commerce duo Alibaba and Amazon.com proved beneficial as the former was negatively impacted by an anti-monopoly probe while the latter lagged the market. Both companies do not pay dividends and are therefore ineligible for portfolio inclusion.
Real estate: Both an above-index sector exposure and stock selection weighed on relative results. Communications infrastructure real estate investment trust Crown Castle International was a key detractor as its shares fall on the market’s shift from lower-beta companies to higher-growth stocks over the quarter.
Consumer staples: The market’s shift towards a more ‘risk-on’ attitude was detrimental to investments in more defensive sectors such as consumer staples. This was aggravated by an above-index sector exposure and stock selection with UK-based conglomerate Unilever the key detractor as its shares ended the fourth quarter down more than 7%.
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