The fund is an American success story (Photo: freepik, wirestock)
The USA will remain the epicenter of the global stock market in 2025. With their innovation-driven economy and robust corporate profits, they offer investors the best conditions.
Despite global uncertainties such as trade conflicts or the prospect of moderate interest rate cuts, several factors point to above-average performance for US stocks.
Expected U.S. corporate earnings growth will be supported by strength in key sectors such as technology and healthcare. Added to this is the dynamic development around artificial intelligence, which continues to be dominated by US companies.
For investors who want to invest in the US markets, a clear focus on quality remains crucial – and this is exactly where it comes in Capital Group Investment Company of America (ISIN: LU1378994856).
A success story for 90 years
Capital Group Investment Company of America (ICA) is a real institution. The fund celebrated its 90th anniversary in 2024 and represents a proven investment strategy that continuously adapts to market conditions. Since 2016, the fund has also been available to European investors under the UCITS umbrella.
His goal is clear: long-term capital growth and stable income. To achieve this, the fund relies on a broadly diversified portfolio of US companies that are not only market leaders in their industries, but also impress with their dividend policies.
Investment strategy with substance
The fund takes a unique team approach. Instead of a single manager, 10 experienced experts lead the strategy. With an average of 31 years of market experience, they bring in-depth knowledge and diverse perspectives to make the best investment decisions.
Stock selection is carried out according to strict criteria. We are looking for companies with stable business models, high dividend capacity and competitive advantages. The focus is not only on current profits, but also on long-term profitability.
Dynamism meets tradition
One of the fund’s key success factors is its ability to adapt to changing market conditions. While construction and oil dominated in the 1940s, today the focus is on technology and health. It is precisely this flexibility that has made the fund a permanent fixture.
Management currently invests in market-leading technology stocks, including well-known names such as Microsoft, Broadcom and Alphabet. In the healthcare sector, managers are focusing on companies that are developing innovative therapies and benefiting from the aging population, including the Unitedhealth Group.
Strong numbers underpin the strategy
The fund is one of the largest of its kind and manages assets of around $193 billion. The performance is convincing: the fund has doubled its value in the past 5 years.
The one-year return is just under 36 percent. The Sharpe ratio of 1.01 over 5 years, one of the best values ​​in the sector, shows that the fund not only achieves high returns, but also does so with manageable risk.
Conclusion: Quality prevails
US stocks should continue to be an important part of every portfolio in 2025. With a proven strategy and an experienced team, Capital Group Investment Company of America offers investors a powerful combination of stability and growth opportunities. In times of high stock valuations, such a quality approach could be crucial.
Disclaimer:
Not investment advice. No call to buy or sell securities.
Michael Somers