American Funds EuroPacific Growth Fund

Scorecard
4 / 5 Stars
Lipper
4 4 2 5 3
Zacks Investment Research
2 (Buy)
Standard & Poor's
4 / 5 Stars
TheStreet.com
D (Sell)

U.S. News evaluated 209 Foreign Large Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Note: Profile written for different share class.

Performance

The fund has returned 19.07 percent over the past year, 6.80 percent over the past three years, 17.36 percent over the past five years, and 8.49 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date 1.4%
1 Year 19.1%
3 Years (Annualized) 6.8%
5 Years (Annualized) 17.4%
10 Years (Annualized) 8.5%

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Summary

The American Funds EuroPacific Growth Fund, the largest international fund, has a long history of investing in a diverse set of markets.

As of March 05, 2014, the fund has assets totaling $118.03 billion. Its portfolio consists mostly of a blend of large-company growth and value stocks in Europe and the Pacific Basin.

The fund had a banner year in 2009 but had a slow start in 2010. Emerging Markets make up about 20 percent of the portfolio as of the end of the first quarter. As the name suggests, the fund is well-diversified throughout Europe and Asia among developed and developing countries with more than 300 holdings. The fund has returned 19.07 percent over the past year and 6.80 percent over the past three years.

Historically, the fund has a record of steady gains. Since its 1984 inception, the fund has weathered several overseas financial market storms. The fund has returned 17.36 percent over the past five years and 8.49 percent over the past decade.

Investment Strategy

“It’s a growth fund by objective,” says Dale Hanks, vice president of Capital Research & Management. “Portfolio counselors don’t explicitly have to invest in dividend-paying stocks, although if they think that there’s good total return potential, they can.” The fund will invest at least 80 percent of its net assets in securities of companies in Europe and the Pacific Basin, according to the fund’s prospectus.

Role in Portfolio

Morningstar describes this fund as a “core” player in an investment portfolio, saying, “This is the only international fund most investors need.”

Management

Like other funds in the American fund family, the fund is advised by Capital Research & Management Co., which oversees eight multiple portfolio counselors who specifically manage the fund. Morningstar credits the management team for maintaining a cool front under calamitous markets recently, saying that the “management’s key insight through this credit crisis has been the assessment that only companies with the right mix of business and balance sheet strength would survive to fight another day.” The management team was named one of Morningstar’s three Fund Managers of the Year in 2009.

Fees

American Funds EuroPacific Growth Fund has an expense ratio of 0.85 percent.

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Risk

Emerging market stocks and foriegn stocks may be subject to changes in political, social, and economic conditions, as well as currency, interest rate, and commodity price fluctuations.

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Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 4 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 3 for one year, 4 for five years, and 3 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Risk Rank, a measure of volatility, is 3 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-03-12

The fund appears on the 2011 Money 70 list of recommended mutual and exchange-traded funds.

Money 70

In the annual Lipper/Barron’s Fund Families Survey for 2010, American Funds ranks 49th out of 57 fund families surveyed.

Lipper

Morningstar gives this fund a stewardship rating of A on a scale of A to F, saying, “This fund is supported by a fundholder-focused corporate culture and a fund board led by an independent chairman. Its fees also are reasonable. Overall, it’s a strong steward of capital.”

Morningstar 2011-04-06

In the annual Lipper/Barron’s Fund Families Survey for 2010, American Funds ranks 49th out of 57 fund families surveyed.

Lipper

Morningstar gives this fund a stewardship rating of A on a scale of A to F, saying, “This fund is supported by a fundholder-focused corporate culture and a fund board led by an independent chairman. Its fees also are reasonable. Overall, it’s a strong steward of capital.”

Morningstar 2011-04-06