The US-based investment manager has launched a UCITS fund focusing on the growth of developing economies.

Capital Group is planning to make its emerging market-focused strategy, New World, available to investors outside the US with the launch of Capital Group New World Fund (LUX) next month.

The strategy, which was launched in the US in 1999, has reached $26 billion in size and is managed with a flexible, domicile-agnostic approach. It seeks to capture the growth potential of developing economies, combining local emerging market businesses with global multinationals that benefit from emerging market growth.

The new Luxembourg-domiciled fund will be the third fund launched as part of Capital Group’s drive 2015 to make some of most successful investment strategies from the US available to European investors. The first was the Capital Group New Perspective Fund (LUX), launched in October last year, which has gathered over $500 million of assets, followed by Capital Group Investment Company of America (LUX), launched in June this year.

“The New World strategy offers a global approach to emerging markets – allowing us to access growth potential via both locally domiciled businesses and global players,” said Richard Carlyle, investment director at Capital Group. 

“Since its launch, the New World strategy has outpaced both emerging market and global equities, demonstrating that its combination of local and global companies can offer an attractive opportunity for investors looking for a more resilient way to capture the potential of developing economies.”

Capital Group, which is headquartered in Los Angeles, California, has had a European presence since 1962. Its offices in the region are in Amsterdam, Frankfurt, Geneva, London, Luxembourg, Madrid, Milan and Zurich. The group manages more than $1.4 trillion in long-term assets for individual and institutional investors around the world.