THE ANGEL, April 30, 2021 / PRNewswire / – The Capital Group, home of American funds and one of the world’s largest investment management firms, has filed with the Securities and Exchange Commission for an exemption based on Fidelity’s active equity ETF methodology.

Earlier this year, Capital Group announced that it would offer the company’s first actively managed Exchange Traded Funds (ETFs). Capital Group plans to launch both equity and fixed income ETF strategies in early 2022.

“ETFs will be an important addition to our current suite of investment solutions,” he said Holly Framsted, CFA, Head of ETFs, Capital Group. “Fidelity’s innovative structure is one of the solutions we will consider when planning a robust ETF launch in early 2022.”

Fidelity’s Active Equity ETF model uses a “tracking basket” methodology that maintains the advantages of the ETF structure, provides information to market participants to promote efficient equity trading, and maintains the ability to create value through active management.

“We are very excited to have the opportunity to work with Capital Group,” said Greg Friedman, Head of ETF Management and Strategy at Fidelity. “Fidelity is committed to the active equity ETF space and our innovative methodology is designed to work seamlessly with the existing ETF market.”

Since its inception in 1931, Capital Group has continued to develop its offering, from mutual funds to other services, including target term funds. Luxembourg Funds, model portfolios, collective investment schemes and separately managed accounts.

“As we deliver superior long-term investment results for our investors, the introduction of ETFs continues our strategy of expanding choice for financial professionals and enhancing their ability to select the vehicle that is best suited to their clients’ long-term goals,” added Framsted added.

About the Capital Group
The Capital Group, home of American Funds, is celebrating its 90th anniversary in 2021 and is uniquely focused on delivering superior results to long-term investors with compelling portfolios, rigorous research and individual accountability. From December 31, 2020, Capital Group manages more than $ 2.3 trillion in stocks and fixed income assets for millions of individuals and institutional investors around the world.

The Capital Group manages the equity through three investment groups. These groups make investment and voting rights decisions independently of one another. Fixed income experts provide fixed income research and management across the capital organization. However, securities with equity characteristics only trade for one of the three investment groups.

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For more information contact:

Hannah Coan, Capital group
Phone: 213.615.5199
E-mail: [email protected]

Investments are not FDIC insured, nor are they deposited with or guaranteed by a bank or other company, so that they can depreciate in value.

Investors should carefully consider the investment objectives, risks, fees and expenses. This and other important information is contained in the fund Brochures and summary brochuresThis can be obtained from a financial professional and should be read carefully before investing.

Statements attributed to any person represent the opinions of that person as of the date of publication and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight problems and should not be taken as advice, confirmation, or recommendation.

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The “Tracking Basket” method ensures the confidentiality of a portfolio’s securities and trading strategies by disclosing a “Tracking Basket” made up of selected recently published portfolio holdings, liquid US ETFs that contain information about the types of instruments in which the Fund invests, as well as cash and cash equivalents, consists of cash equivalents. This “tracking basket” is published daily and is used to facilitate the creation and redemption process. Each ETF’s portfolio holdings are published monthly on its website with a 30-day delay.

None of the products or investment instruments offered by CAPITAL GROUP are sponsored, supported, sold or advertised by FIDELITY or any of its affiliated companies.

SOURCE Capital Group

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