Benefits of investing in the Capital Group New World Fund Hedged (AU)

Investing in the Fund offers a number of benefits, including:

• Access to investment opportunities across a broad and diversified range and mix of markets, industries, securities and currencies that are not generally available to individual investors;

• Reduced currency risk through hedging;

• Exposure to investment professionals who are part of a globally integrated network with global research capabilities delivering superior investment ideas and capabilities to clients around the world;

• Participation in any capital appreciation and income distributions from the Fund.

Risk level

High

Investor suitability

An investment in the Fund may suit you if you are seeking a long-term investment in international equities, other equity type securities, corporate and government bonds, cash and cash equivalents hedged to the Australian dollar.

About the Fund

The Fund provides you access to an actively managed portfolio of international listed equities, including emerging markets, through its investment in Capital Group New World Fund (LUX), a Luxembourg based open-ended collective investment scheme (SICAV), and cash. It aims to provide long-term investment results exceeding a combination of the MSCI All Country World Index, net dividend reinvested (in AUD) Hedged to AUD and the MSCI Emerging Markets Index, with net dividends reinvested (in AUD) Hedged to AUD.

About Capital Group

Capital Group is one of the largest and most experienced investment management firms in the world. Since 1931 Capital Group has been singularly focused on delivering superior, consistent results for long-term investors using high-conviction portfolios, rigorous research and individual accountability.

There are three key factors that differentiate Capital Group.

Aligned with investor success

Capital Group bases its decisions on a long-term perspective, which Capital Group believes aligns its goals with the interests of its clients. Achieving superior, long-term returns is Capital Group's only goal, so managers are rewarded for their results, not the level of assets they manage.

The Capital System

Capital Group's investment process, The Capital System, is designed to enable individual investment professionals to act on their highest convictions, while limiting the risk associated with isolated decision-making. Each portfolio is divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. A disciplined, multi-layered governance structure oversees the system's operation.

Built to last

As a private firm with an independent charter and robust balance sheet, Capital Group invests in improving its capabilities through up and down markets. With high rates of retention, Capital Group has some of the most experienced investment professionals and a commitment to sustaining its investment process over generations.

How we invest your money

The Fund invests in shares in Capital Group New World Fund (LUX), a Luxembourg based open-ended collective investment scheme (SICAV). The Fund will also have some exposure to cash.

The Capital Group New World Fund (LUX) invests in common stocks of companies with significant exposure to countries with developing economies and/or markets. Capital Group New World Fund (LUX) may also invest up to 25% of assets in below investment-grade (BB+/Ba1) non-convertible debt securities.

The Capital Group New World Fund (LUX) uses forward foreign exchange contracts to seek to limit exposure to currencies other than the Australian dollar. Hedging may not completely eliminate the exposure to currency movements, and there can be no guarantee that hedging strategies will yield returns that exceed those of the underlying portfolio. Investors should note that hedging may substantially limit their ability to benefit from the fall of the Australian dollar against other currencies. The cost of hedging and all gains/losses from hedging transactions are borne exclusively by the Fund.

Fund asset classes

• International equity: up to 100%

• Fixed interest: up to 25%

• Cash: ancillary