American Funds SMALLCAP World Fund (SMCWX) Class A

This next world stock fund has invested in small cap / mid cap international stocks. American Funds SMALLCCAP World A fund is another popular mutual fund for investor. Investor can use this fund for portfolio diversification. More details about the fund’s review can be found below.

American Funds SMALLCAP World A (Ticker: SMCWX)

American Funds SMALLCAP World

The investment objective of American Funds SMALLCAP World A (SMCWX) fund is to achieve long-term growth of capital. This American Funds fund invests >80% of net assets in growth-oriented common stocks and other equity-type securities, including preferred stocks, convertible preferred stocks, and convertible bonds, of companies with small market capitalizations.

According to the fund’s prospectus, the small capitalization companies are companies with market capitalizations of $3.5 billion or less. This international stock fund invests majority of its assets outside the United States.

Fund Details

• Fund Inception Date: April 30, 1990
• Ticker Symbol: SMCWX (Class A)
• CUSIP: 831681101
• Beta (3yr): 0.98
• Rank in category (YTD): 87%
• Category: World Stock

Updated on 11/7/2011

This world stock fund has total net assets of $17 Billion. The fund’s expense ratio fee is 1.13%. This class A fund also has a front end sales load of 5.75% and 12b1 fee of 0.24%. This fund is managed by a group of managers (including Mark Denning, Claudia Huntington, Gordon Crawford, etc). There are 10 portfolio managers from fund’s adviser, capital research and management. It also has an annual holdings turnover of 45%.

In term of performance, this world stock fund has achieved an average returns. Morningstar is rated this fund with 3 stars rating. Based on load adjusted returns, this SMCWX fund has returned -16.13% over the past 1 year, 2.03% over the past 3 year, and 7.7% over the past decade. The worst 1 year total return is occurred in 2008 with -49.4%.

For investment, investor can purchase this mutual fund from 74 brokerages. You will need $250 minimum initial investment to start investing in this equity fund for brokerage or IRA accounts. This fund is also offered in other classes such as:  Class B (Ticker: SCWBX), Class C (Ticker: SCWCX), Class F-1 (Ticker: SCWFX), Class F-2 (Ticker: SMCFX), Class 529-A (CSPAX), Class 529-B (CSPBX), Class 529-C (CSPCX), Class 529-E (CSPEX), Class 529-F (CSPFX), R1 shares (RSLAX), R2 shares (RSLBX), R3 shares (RSLCX), R4 shares (RSLEX), R5 shares (RSLFX) and R6 shares (RLLGX). The R6 class has an expense ratio of 0.73% per year. There is no sales load for this R6 shares.

The assets mix as of October 2011 is 38.8% in US Equities, 51% in Non US Equities, 9.3% in cash, and 0.9% in US Bonds. The top 4 sectors include Health care equipment & supplies, Oil gas & consumable fuels, Specialty retail, and Media. The top 10 stock holdings in this fund are Pharmasset, ENN Energy Holdings, lululemon athletica, InterOil, Virgin Media, MSC Industrial Direct, Sumber Alfaria Trijaya, AAC Technologies Holdings, East West Bancorp, and Hittite Microwave.

Disclosure: No Position

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