American Funds EUPAC Fund Class R-6 RERGX

American Funds EUPAC benefits from a seasoned management team, extensive analyst support, and a flexible approach to international investing. It earns High People and Above Average Process ratings.

Although the strategy has seen some recent lineup changes, it continues to draw on a deep bench of experienced managers. Since mid-2025, the firm has removed two managers from the strategy and added three, but these changes affected only about 5% of assets (some of these were attributable to the firm’s latest periodic review). The additions—Lisa Thompson, Arun Swaminathan, and Dawid Justus—are all seasoned international investors. Veteran manager Carl Kawaja remains head of the strategy, supported by 11 managers and more than 150 analysts across three subsidiaries. Notably, six managers have served on the strategy for more than a decade.

The strategy’s broad and flexible approach allows managers to apply their preferred styles while fully leveraging the firm’s robust resources. All three equity subsidiaries contribute to sourcing opportunities across the extensive international equity universe. While managers each run an independently managed sleeve, they generally favor companies with attractive growth prospects, resulting in a portfolio that consistently lands in the large-growth segment of the Morningstar Style Box. The approach, however, is less aggressive than many foreign large-growth Morningstar Category peers and the MSCI ACWI ex-USA Growth Index.

Performance has been consistent over time. Over the trailing 15- and 20-year periods through May 2026, the R6 shares outperformed both the MSCI ACWI ex-USA Index (the prospectus benchmark) and the MSCI ACWI ex-USA Growth Index, while also exceeding the category average. In 2025, the strategy gained 29.2%, beating both benchmarks and placed in the category’s top quintile, aided by successful financials holdings such as Banco Bilbao Vizcaya Argentaria, UniCredit, and Standard Chartered. Across more than 230 rolling five-year periods since the longest-tenured manager’s 2001 start, the strategy has outpaced both benchmarks and the category average at least 80% of the time.

Over the long run, investors are well-positioned to benefit from the strategy’s low costs, extensive resources, and flexible investment profile.

This strategy has grown to an extraordinary size over the years, but, other than reducing the percentage of assets devoted to smaller companies, the overall approach has remained largely intact. The freedom allotted to the experienced managers and the adept combination of styles result in an Above Average Process rating.

American's multimanager approach lets managers independently run their own sleeves of the portfolio. Each manager invests with their own style, relying on the combination of sleeves to fulfill the strategy’s diversified growth mandate. Accordingly, the managers can feel empowered to embrace risk at times: emerging-market stakes are usually relatively high, and occasionally individual managers will put a large allocation into one or a few stocks. Yet, the stratified structure ensures that any one decision doesn’t overpower the portfolio.

The managers’ investment styles range from concentrated growth to more diffuse, value-oriented strategies, though they typically take a long-term view. The fund’s annual portfolio turnover is typically 25%-40%, reflecting the managers’ long-term perspective. Below-average portfolio turnover also helps keep trading costs in check. A large analyst staff supports the managers with investment ideas and industry-specific analysis. A portion of the strategy is devoted to analyst-run research portfolio sleeves, too.

Even at its current scale, the strategy continues to access opportunities further down the market-cap spectrum. As of March 2026, its roughly 10% stake in small- and mid-cap companies was in line with both indexes.

The strategy’s combination of independent sleeves produces a diversified portfolio. As of March 2026, the strategy counted roughly 360 holdings with around one-fifth of assets stashed in the top 10.

This large portfolio has distinctive sector positioning, though. Its technology stake, for example, has ranged from 11% to 21% over the past five years, versus the prospectus MSCI ACWI ex-USA Index's 8%-14%. This strategy has also been typically light on financials relative to the prospectus benchmark. As of March 2026, its 16.7% stake was 8 percentage points underweight the core index. This posture contributes to the strategy’s growth tilt relative to the core index.

There have been notable regional deviations, too. The managers have generally put a few stocks from emerging markets, including South American e-commerce firm MercadoLibre and Indian multinational Reliance Industries, in the strategy’s top 25 holdings. European countries such as France and Germany have been notable overweightings. The strategy’s India positioning has absorbed 6%-9% of assets over the past five years and typically has been overweight relative to the index, but it dropped to 3% (in line with the index’s) as of March 2026.

With roughly USD 135 billion in assets, the strategy is the foreign large-growth category’s biggest offering. This girth limits the managers’ ability to take big positions in mid-cap stocks.

A multimanager structure enables this strategy to handle its massive asset base. Its High People rating reflects the managers’ experience, tenures at the firm, and success, as well as the depth and tenures of the large analyst staff. Capital Group, the parent of American Funds, has split the fund’s massive, roughly USD 135 billion asset base—the largest in the foreign large-growth category—between equity subsidiaries Capital World Investors, Capital Research Global Investors, and Capital International Investors.

After its latest periodic firmwide self-assessment, this strategy underwent some personnel changes at the start of 2026 that came on the heels of a few additions in 2025. Two managers, Harold La and Chris Thomsen (who ran about 5% of assets combined), were removed, and Dawid Justus was added. Justus has ample international experience and has served as a manager on an emerging-market strategy for more than eight years, so this is well within his wheelhouse. He also took over as CRGI’s principal investment officer, in charge of capital allocation, replacing Thomsen. In 2025, the firm added Lisa Thompson and disclosed Arun Swaminathan, who had been running assets in the strategy for five years as an undisclosed manager. Thompson is a veteran manager who has been on another international strategy for more than seven years, making this an easy transition.

This strategy remains in the hands of firm veterans with exceptional support. Carl Kawaja heads up the whole strategy and CWI’s team, which includes Andrew Suzman, Lawrence Kymisis, Lara Pellini, Tomonori Tani, and Swaminathan. Justus steers CRGI’s team of Sung Lee and Nicholas Grace, while CII’s Gerald Du Manoir oversees Samir Parekh and Thompson. Each manager runs an independent portfolio sleeve, with Kawaja, Thomsen, and Du Manoir ensuring stylistic balance across the strategy. The CII, CWI, and CRGI teams each draw on about 50 analysts, and each analyst group also oversees its own slice of the portfolio.

Capital Group stands out from the pack as it enhances capabilities around strong core competencies. It earns a High Parent rating.

Since 1931, Capital Group, parent of American Funds, has thoughtfully built out capabilities to become one of the world’s largest asset managers, managing more than USD 3 trillion dollars. Building on the success of its long-term-oriented, multiple-manager system for global equities, the firm has developed robust fixed-income and multi-asset units, each managing more than USD 500 billion. In January 2026, as part of its periodic review of its now five distinct research organizations, Capital Group implemented changes to its equity investment subsidiaries. This exercise resulted in most equity strategies having at least one portfolio manager change, but according to the firm, it better balances each of Capital Group’s three equity groups in terms of investment breadth and helps the firm better align leadership opportunities across the groups. These kinds of shifts have occurred before, with the last coming in 2018.

Capital Group has also turned its attention to some modern opportunities. To address public/private market convergence trends, it launched in April 2025 two semiliquid funds with private market giant KKR. In keeping with its signature portfolio management approach, it splits those funds into multiple sleeves, which are managed independently by distinct managers at each firm. Capital Group plans to deepen this relationship with target-date and model portfolios, as well as public/private equity funds. On the other end of the spectrum, although the firm is firmly dedicated to active management, it has also acknowledged investor preference for passive investing and has thus partnered with indexing stalwarts Vanguard, BlackRock, and Schwab on active/passive models. Capital Group’s proven investment prowess, strong reputation among investors, and scale mean it can be selective with its partnerships.

In addressing another recent trend, since early 2022, the firm has launched more than 25 active exchange-traded funds globally, most of which are distinct, but several are similar to some of its legacy American Funds mutual funds. Unlike some of its peers, though, it has not filed for SEC exemptive relief to offer ETFs as a share class.

That’s a lot of change for such a storied and sizable firm, but Capital Group has a long history of serving investors well.

The strategy has delivered solid long-term results versus its benchmarks. The R6 shares' 7.9% annualized return during the trailing 15 years through May 2026 surpassed the 6.9% and 7.0% gains for the MSCI ACWI ex-USA Index (its prospectus benchmark) and the more apt MSCI ACWI ex-USA Growth Index.

The strategy’s diversified approach typically leads to a portfolio that’s been more growth-oriented than its prospectus benchmark but less aggressive than the category index. Recently, this positioning has led to outperformance versus the growth index while lagging the prospectus index. For example, over the trailing three-year period through May 2026, its 17.8% gain beat the growth index’s 16.9% and the typical category peer’s 13.2%, but trailed the prospectus index’s 20.8%. Tech and communication services picks such as SK Hynix, Shopify, and Bharti Airtel were notable contributors.

Results have been consistent over time. For example, during the more than 230 rolling five-year return periods since the longest manager’s 2001 start, the strategy has outpaced both indexes and the category average at least 80% of the time. In 2025, the strategy’s 29.2% gain bested both indexes and landed in the top quintile of the category in part thanks to financials picks such as Banco Bilbao Vizcaya Argentaria, UniCredit, and Standard Chartered.

American Funds EUPAC R6's Prospectus Adjusted Expense Ratio is 0.47% per year. It places it in the cheapest quintile of the Morningstar US Fund Foreign Large Growth Category, where the median fee is 0.9% per year. This cost positioning translates into a Medalist Rating Price Score of 2.29, which reflects its relative price positioning within the category. The Price Score ranges from -2.50 (most expensive) to +2.50 (cheapest), with higher scores indicating better cost competitiveness.