Capital Group World Div Growers (AU) (CIM0002AU) Report & Performance

What is the Capital Group World Div Growers (AU) fund?

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.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Capital Group World Div Growers (AU)

Capital Group World Div Growers (AU) Fund Commentary December 31, 2022

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.

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 World Div Growers (AU)CIM0002AUManaged FundsForeign EquityLarge Blend - Income Dividend FocusedForeign Equity - Large Income IndexDeveloped -World Index5.71 M0.95%0.00%0%

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 World Div Growers (AU)0.39%1.99%13.59%7.1%8.7%7.55%9.24%9.3%-4.27%-11.99%-11.99%

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 World Div Growers (AU)Foreign Equity - Large Income Index-3.83%-0.02%NA%NA%NA%0.981.51%3.09%0.980.96

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Capital Group World Div Growers (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 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 0.39% in the last month. The previous three years have returned 7.1% annualised and 9.3% 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 NA with an annualised volatility of 9.3%. 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 -3.83% and -0.02% 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 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 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 0.98 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.

Historical Performance Commentary

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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