Capital Group receives regulatory approval for UCITS Active ETFs
Capital Group has received regulatory approval from the Central Bank of Ireland for its first UCITS active ETFs.
The firm writes that, expected to launch in Europe and Asia-Pacific in Q1 20273, the four strategies will bring Capital Group’s long-term active investment capabilities to investors through a UCITS ETF structure.
Since launching its first active ETFs in North America in 2022, Capital Group has built a USD160 billion active ETF business spanning 25 strategies and eight ETF model portfolios in the US, and seven funds in Canada. Now the third-largest active ETF issuer in the US, the firm is expanding its active ETF platform globally.
Guy Henriques, President, Europe and Asia-Pacific Client Group, Capital Group, says: “Our focus is on delivering Capital Group’s long-term investment results in our clients’ vehicle of choice. Investors increasingly want the flexibility and efficiency of ETFs alongside the benefits of active management. This approval is a significant milestone in our global active ETF expansion. Our active ETFs are among the fastest growing in the U.S., and bringing this offering to Europe and Asia-Pacific strengthens our position to be the investment partner of choice for intermediaries and institutional clients around the world.”
The initial Ireland-domiciled active ETF range4 is designed to sit at the core of investor portfolios, offering equity and fixed income exposure. The firm writes that the strategies benefit from Capital Group’s fundamental research, long-term investment approach and multi-manager investment system.
Strategy Asset class Capital Group Global Growth Equity Equity Capital Group US Core Equity Equity Capital Group US Dividend Value Equity Capital Group Global Bond Plus Fixed income
Jamie Sinclair, Head of ETF Product and Sales, Europe and Asia‑Pacific, Capital Group, comments: “Investor demand for active ETFs continues to grow and we are focussed on broadening how investors worldwide access Capital Group’s active investment capabilities. As equity markets become increasingly concentrated, investors are placing a greater premium on fundamental research, active decision-making and diversification. In an uncertain market environment, our UCITS active ETF solutions are designed to provide investors in Europe and Asia-Pacific with differentiated opportunities across equities and fixed income while serving as core building blocks within long-term portfolios.”