Capital Group Discloses 5.44% Equity Stake In Plus500 Via Regulatory Filing

Capital Group, a major American asset management firm, has become one of the key investors in Plus500 (LON: PLUS), now holding a 5.44% stake in the London-listed retail broker. This was disclosed through a regulatory filing with the London Stock Exchange.

While the specific dollar amount of Capital Group’s investment has not been revealed, the 3,917,567 shares it acquired are valued at approximately £133.1 million, or around $181 million, based on the current market rate.

Capital Group Aims To Strengthen Position In High-Growth Broker Plus500

Notably, Plus500 shares are trading close to their highest value, maintaining a strong upward trend that has continued for several months. Over the past year, the broker’s share price has surged by nearly 57%, and over a longer stretch of five years, the increase is close to 175%.

With this move, Capital Group has become the third-largest shareholder in Plus500, ranking just behind BlackRock and JP Morgan, who control 6.7% and 5.5% of the voting rights, respectively. Another significant investor is The Vanguard Group, which holds a 5.41% stake in the company.

This development comes as Plus500 continues to broaden its presence in the United States. Unlike its international operations, which primarily focus on contracts for differences (CFDs), its US strategy is centered around the futures market.

The broker entered this space by acquiring Cunningham Commodities and Cunningham Trading Systems, two entities from the same parent group. The acquisition cost $30 million and was funded from Plus500’s increasing cash reserves.

Capital Group Wants To Leverage Plus500’s U.S. Retail Expansion

Plus500 is targeting both large investors and everyday traders in the U.S. However, most of the attention is focused on regular retail users, as the company has always prioritized them. As part of its plan to expand in the U.S., Plus500 has partnered with Barchart, a company that provides market data and technology tools.

Financially, Plus500 recently saw a 13% rise in revenue compared to the previous quarter, reaching $205.8 million. Still, this number is 5% lower than what it earned during the same time last year.

Capital Group is a large investment company based in the United States. It’s one of the oldest and largest in the business, managing over $2.6 trillion in assets. Headquartered in Los Angeles, the company is privately owned and has offices across the Americas, Asia, Europe, and Australia.

The company focuses on actively managed investment products. It manages over 40 mutual funds through its branch, American Funds Distributors. Capital Group also offers private equity, managed accounts, and investment services to wealthy individuals and large institutions worldwide.