Capital Group is holding the third edition of our annual conference at our London office on June 18th. The event, which will involve the participation of some 70 fund selectors and decision makers from across the European Financial Intermediary community, will provide our audience with the opportunity to learn at first hand from investment professionals across our equity, fixed Income and multi-asset strategies, our investment approach; our research process and how we incorporate issues of note within the industry - such as ESG concerns - into our integrated research.
The conference agenda will also feature main platform speakers, panel discussions and smaller interactive strategy workshop sessions providing a wealth of insightful content with regard to key macro trends and the opportunities and challenges faced in today's markets. The keynote speech at the conference - "Trump and global markets: an analysis of 2+ years of a divided US government" will be given by Matt Miller, Political economist and corporate affairs advisor at Capital Group and a former senior advisor in the White House Office of Management and Budget. He was also a columnist for The Washington Post; the host of public radio's "Left, Right & Center" program; and a senior fellow at the Center for American Progress. Matt's analysis cuts through the noise (and the tweets) to make sense of the stakes in a lively tour of today's political and economic terrain.
We very much hope you can join us. If you have any questions regarding the conference please email: firstname.lastname@example.org.
|08:00||Registration & breakfast|
|08:30||Welcome - Hamish Forsyth, President Capital Group Europe & Asia|
China: secular engine of global growth at the end of a cycle?
Macroeconomic overview in this late market cycle with our panel of China experts: Susan Dietz-Henderson, China affairs director Capital Group; Steve Watson, portfolio manager Capital Group and Lycus Ji, China industry specialist.
The power of shareholder engagement
Natasha Braginsky Mounier, Global ESG investment director at Capital Group in discussion with Capital Group Investment analysts Matthew Lanstone and Holger Siebrecht.
Fund Selector: next generation
Evolving the fund selector role to meet the needs of next generation investors.
Fixed income in late cycle markets – delivering a predictable outcome
Mike Gitlin, Head of fixed income at Capital Group & a member of the Capital Group Management Committee.
|11:25||Thematic Workshop 1|
|12:20||Thematic Workshop 2|
|13:15||Wrap up on the morning & introduction of our key note speaker|
Keynote Lunch Session with Matt Miller, Political economist and corporate affairs advisor:
"Trump and global markets: an analysis of 2+ years of a divided US government". Matt's speech will examine how the unique nature of the Trump presidency can post particular concerns for investors and global citizens alike, as Washington and the world grapple with a range of economic and US foreign policy challenges.
|14:15||Close of conference|
Capital Group New Perspective Fund (LUX) Review
For those of our guests who are invested in the fund and would like to have a review of the portfolio, this will be offered in addition to the main conference programme. Steve Watson, Equity portfolio manager and David Polak, Investment director will host the review.
Over the last 45 years there have been numerous tests for global equity investors: energy crises, runaway inflation, significant swings in exchange rates, multiple recessions, numerous financial market bubbles (and subsequent bursts), seismic shifts in the structure of the global economy, changing trade patterns and unprecedented monetary policy experiments by the world's central banks. In this presentation we will look at these changing patterns of global trade and how to identify patterns for the future including alternative ways of looking at the geography of multinationals and identifying companies that benefit from changing patterns of, rather than just growth in, world trade. Over 45 years ago, back in 1973, Capital Group launched New Perspective Fund (NPF). At the time NPF entered a world of investing that was destined for great change, and in essence, that is exactly why we launched the strategy: to focus on long-term investment opportunities arising from changing patterns of world trade.
EM equities struggled throughout 2018, hurt by country-specific issues, rising US rates, US dollar strength, a less benign backdrop of global growth and global trade uncertainties. Although we could expect continued volatility in EM amid increases in US rates, trade tensions and the idiosyncratic issues in various countries, there are a number of reasons to remain positive about the asset class. Capital Group has been a pioneer in Emerging Market investing since the 1980s and launched the New World strategy in 1999. The strategy focuses on the growth in developing economies from a multidimensional, global perspective – combining local EM businesses along with global multinationals that have significant exposure to developing economies. We believe this can offer investors a more resilient way to capture the potential of EM investing whilst delivering a lower volatility of returns.
Political issues continue to cloud Europe's horizon. Brexit negotiations continue with the risk of a no-deal departure still on the cards for the UK. Italy is too important to ignore and too big to bail out. How does the EU contend with the current national populist government as it pushes for more fiscal room? National populist parties across Europe could disrupt the hold of traditional mainstream parties at the European Parliamentary elections in May 2019. European equity markets have traded at a substantive discount to the US, this is at least partially due to European markets seeking a bigger political risk premium. However selective opportunities exist. Across a range of sectors there are comparable companies trading at lower valuations than their US counterparts. Companies with strong balance sheets and long runways trading at a discount partly due to their address. Capital Group's European Growth and Income Fund (LUX) seeks to take advantage of these opportunities, we will elaborate on our views for European equity markets and on the fund's current positioning.
There's just no getting around it. US stocks have become expensive. Even after bouts of unsettling volatility in 2018, the Standard & Poor's 500 Composite Index has advanced nearly 400% since the March 2009 start of the bull market. Although company earnings in recent years have soared along with stock prices, valuations have expanded considerably. Investors may want to temper expectations for returns going forwards but there are still opportunities in this late stage market. Selectivity is critical. From an all cap perspective, discover how Capital Group's fundamental, bottom-up time-tested approach to investing – Capital Group Investment Company of America - can deliver growth and income in an increasingly uncertain environment or alternatively how the managers of Capital Group AMCAP Fund (LUX) evaluate and invest in companies across the market spectrum that have demonstrated solid historical growth and characteristics that we believe are likely to support above-average growth in the future.
As Prime Minister Shinzo Abe continues his third term of service into 2021, so will his policies. Ensuring that Japan keeps up with its nominal GDP growth, which has been favourable over the past few years, will be one of the prime minister's main objectives in order to lift the country out of its fiscal deficit and improve its standard of living. On the governance front, much is still needed to be done to refurbish Japan Inc. However, notable progress has been made. Uncovering hidden corporate value by improving shareholder returns and through efficient use of capital can potentially create a virtuous cycle in the Japanese stock market and economy where attractive investment opportunities are there to be identified for the skilled and disciplined stock-picker. The portfolio managers of Capital Group Japan Equity Fund (LUX), through our proprietary fundamental research and long-term global perspective, have been striving to catch such opportunities over a number of years. Our presentation will discuss the outlook for the Japanese economy and consider how the fund is positioned to take advantage of the changes resulting from the reflationary Japanese environment.
A global approach to corporate bonds provides diversification and access to the largest possible opportunity set. With the market standing at almost US$9 trillion (as at 31/12/18) the sector continues to grow, with a greater depth and broader range of issuers providing improved liquidity compared with domestic corporate bond markets. The market offers the potential for higher yields without taking on significantly increased risk. We believe in bond funds behaving like bond funds and through rigorous fundamental credit research, led by a team of sector specialists who directly invest in their highest-conviction ideas, we can capitalise on market inefficiencies. Our approach focuses on delivering excess returns through multiple security and industry-specific decisions, rather than relying on making significant macro moves – which can be difficult to get consistently right. This also helps us maximise the benefits of our globally integrated equity and fixed income research capability.
While emerging markets (EM) had a volatile year, most of the sell-off was concentrated in markets with clear problems. Global activity data held up well in 2018, which could help stronger EM countries deal with a tightening in global financial conditions. Risks include global trade tensions proving more damaging than we expect and/or policy easing in China proving less effective than anticipated. Overall, we believe that EM debt valuations remain reasonable and we continue to favour local currency bonds over hard currency. Despite significant appreciation in 2017, EM currencies mostly appear fairly valued or undervalued versus the US dollar, particularly after a weak 2018. Investors can access the opportunities of the emerging market debt market via Capital Group's blended emerging market debt or emerging market local currency debt strategies. Capital Group has a long and proven track record in emerging market debt investing, having managed out blended strategy since 2006 and the local currency emerging market debt strategy since 2010.
Investment-grade fixed-income assets are offering low levels of income in the current subdued interest rate environment, which could last for some time. Many investors are searching for higher-income alternatives. Capital Group's Global High Income Opportunities strategy has the flexibility to invest across sectors within the higher-yielding fixed-income universe, and as such can offer a solution to those seeking a higher level of total return. Combining corporate high-yield and emerging market debt could appeal to investors who require liability matching or are looking for attractive return from their fixed-income investments. The fund reaches its 20th anniversary this year and we believe it can be a strategic core allocation in a client's portfolio.
In a volatile world where many investors are seeking balance, capital growth is important, but so are capital preservation and income. Attaining all three objectives, however, requires a flexible, integrated approach. Access to a broad investment universe is key. Whilst we believe that a global multi-asset approach is one of the best solutions for investors in pursuit of multiple objectives, not all multi-asset strategies are the same. Capital Group has a significant multi-asset heritage having managed multi-asset strategies since 1973. A strategy that invests consistently in stocks and bonds around the world is equipped to seize the most attractive long-term growth opportunities wherever they may appear, while preserving principal. Our team-based, active approach where there is real dialogue across both investment disciplines enables a holistic approach to asset allocation, benefiting from a combination of fundamental research and macro views? The outcome? A diversified portfolio of high-conviction ideas, integrating both bottom-up and top-down investment approaches.
Investment opportunities and secular trends are constantly evolving. Key for investors is the ability to take advantage of changing trade patterns and innovation in order to better identify the investment opportunities for the future. In this workshop, Capital Group research analysts will discuss how, in an age of the digital economy and digital disruption, our bottom-up research identifies companies that are both shaping and benefiting from the evolving patters of trade and which represent those investment opportunities that may prove to be the winners for the future.