Capital Group signs NZ deal

Capital Group (Australia), a wholly owned subsidiary of US-based global fund manager, Capital Group, has signed a distribution agreement with Heathcote Investment Partners for the New Zealand market.

Tuesday, July 17th 2018, 5:59AM

It is one of the world’s leading and oldest funds management groups and manages more than US$1.7 trillion in equity and fixed income assets for millions of individual and institutional investors around the world.

Capital Group’s global equity New Perspective Fund (NPF) and New World Fund (NWF) will be the initial offerings that Heathcote will take distribution carriage of in New Zealand.

The NPF has generated an excess return of 3.6% above its benchmark of the MSCI ACWI over 45 years, while the NWF has an excess return of 3.2% against the MSCI ACWI over 18 years.

NPF was recently renewed with a Morningstar rating of "gold" and was awarded the Fund Manager of the year: Undiscovered Manager Category award at the Australian Morningstar Awards 2018 for the Capital Group New Perspective Fund.

Capital Group established a permanent presence in Australia in 2013 when it opened a full representative office and the distribution arrangement with Heathcote Investment Partners will enable it to offer New Zealand investors some of its highly regarded and high-performing investment global investment strategies.

Managing director of Capital Group (Australia) Paul Hennessy said: “We have been careful and methodical in our assessment of how best to introduce our global investment strategies to the New Zealand market, and we are confident that the team from Heathcote are best equipped to do this. We look forward to introducing to New Zealand investors high-performing strategies like NPF and NWF.”

Clayton Coplestone, director of Heathcote Investment Partners, commented: “Heathcote is extremely excited to represent one of the world’s largest and pre-eminent fund managers in the New Zealand market. The combination of sound investment processes, longevity and unique global equity capabilities makes Capital Group funds extremely relevant for most investment portfolios.”

Capital Group has participated at the last two Heathcote Meet the Managers roadshows.

Jorden Brown, head of wholesale sales (Australia) for Capital Group (Australia) said: “The Meet the Managers roadshows provided us with a useful platform to confirm the industry appetite for our investment capabilities, whilst providing an insight into the distribution process of Heathcote Investment Partners. We look forward to having a lengthy relationship with the Heathcote team, with a number of exciting announcements for New Zealand advisers in the near future.”

Tags: funds management Heathcote