Capital Group has unveiled plans for a push into the UK market with the launch of a range of London-domiciled funds and a marketing campaign to boost brand awareness.
With assets under management of £1.7trn, Capital Group is one of the largest investment houses in the world. However, UK investors can only buy the group’s products through 31 Luxembourg-domiciled UCITS funds.
The firm today announced its intention to launch a range of UK Oeics, comprising active, long-only equity and fixed income fund strategies, subject to Financial Conduct Authority approval.
Chris Miles, head of UK financial intermediaries at Capital Group, said: “Our intention to launch an Oeic range is the next step to meeting the needs of UK clients and signals a clear commitment to growing our services in the UK market and strengthening our relationships with financial intermediaries.
“It’s about making the best of Capital Group’s investment capabilities more accessible to UK intermediaries and their clients.”
Capital Group’s long-term approach to investing, known as the Capital System, is an active approach that “combines the power of diversity and collaboration with high-conviction investing”.
Instead of relying on sole managers, the firm uses a multiple-portfolio-manager system where portfolios are divided into a number of ‘sleeves’ that are run by individual managers who bring a different style or view. This, Capital Group said, brings the benefits of independent high-conviction decision-making and diversification into a single portfolio.
The fund launch plans come as Capital Group unveiled its first sustained brand campaign to raise its profile in the UK. This brand campaign will highlight the group’s Capital System and long-term approach.
Allyson Foster, head of UK marketing added: “As an adviser-led business we want to send a strong message to the UK market about the value of partnerships in the realisation of people’s financial goals.
“Our debut UK brand campaign will seek to bring to life the core elements of Capital Group’s unique approach to investing and inspire people to take control of their financial futures.”
London is Capital Group’s second largest investment office globally and the firm employs approximately 450 associates in the UK, including 70 investment professionals, across a range of functions.