Capital Group wins Irish approval for UCITS active ETFs

Capital Group has obtained regulatory approval from the Central Bank of Ireland to offer its first UCITS active exchange-traded funds. The firm plans to launch four Ireland-domiciled ETFs in Europe and parts of Asia‑Pacific in the first quarter of 2027. The range will include equity and fixed-income strategies.

The four funds are Capital Group Global Growth Equity, Capital Group US Core Equity, Capital Group US Dividend Value and Capital Group Global Bond Plus. Each will be structured as a UCITS ETF, allowing cross-border distribution across EU member states and potential accessibility for some Asia‑Pacific investors under local rules.

Capital Group launched active ETFs in North America in 2022 and has since expanded that business to about $160 billion in assets. Its active ETF platform now comprises 25 strategies and eight ETF model portfolios in the United States, plus seven funds in Canada. The firm is the third-largest active ETF issuer in the US.

Guy Henriques, president of Capital Group’s Europe and Asia‑Pacific Client Group, commented that investors seek the flexibility and efficiency of ETFs combined with active management. The approval will expand the firm’s active ETF platform for intermediaries and institutional clients.

Jamie Sinclair, head of ETF Product and Sales for Europe and Asia‑Pacific, noted growing demand for active ETFs as equity markets concentrate. She said the UCITS ETFs are intended to offer differentiated opportunities across equities and fixed income and to serve as core building blocks within long-term portfolios.

UCITS is a European regulatory framework that permits cross-border fund distribution across EU member states. Capital Group’s Ireland-domiciled ETFs will be governed by UCITS rules, which may simplify distribution in Europe and meet regulatory requirements for many institutional and intermediary clients.

Capital Group stated the strategies will draw on its fundamental research, long-term investment approach and multi-manager investment system. The initial lineup provides exposure to global and US equities and to global fixed income, offering options for core equity and bond allocations within diversified portfolios.