Capital Group New Pers (LUX) B (EUR) |
by Stephen Welch
Seasoned leaders steer American Funds New Perspective using a time-tested method targeting firms benefiting from global trade. Its cheapest U.S., Luxembourg, and Australia share classes have a Morningstar Medalist Rating of Gold, while pricier shares land at Silver and Bronze. The strategy’s proven multimanager approach sets it up for long-term success. Capital Group, the parent of American Funds, splits the strategy's $120 billion asset base into individual sleeves among nine named managers, a handful of undisclosed up-and-comers, and two analyst-run research sleeves. Two principal investment officers help ensure the fund’s sleeves meld together into a diversified global portfolio. The managers run their sleeves of the overall portfolio as they see fit but must stick to companies that receive at least 25% of their revenues from outside their home region and have at least a $3 billion market-cap float at the time of purchase. The team here is one of Capital’s most stable, and its makeup is impressive. Five of the strategy's nine managers have served together since December 2005, with most-tenured Rob Lovelace serving more than two decades. While potential retirements loom in the coming years, Capital won’t be caught off guard. The firm recently named Barbara Burtin and Patrice Collette as managers in December 2021. Burtin and Collette both have been managing a small portion of the strategy as undisclosed managers for three years each. Behind the management team sits a deep and talented analyst team, which consists of more than 100. The fund’s now 300-plus stock portfolio has typically gotten ahead by protecting capital in down markets and keeping risk in check. Its trailing five-, 10-, 15-, and 20-year returns through May 2023 all ranked in the global large-growth Morningstar Category's top quartile or better. In 2022’s market pullback, the strategy’s 25.8% loss, was 2.1 and 2.8 percentage points less than the category average and the MSCI ACWI Growth, respectively. It helps that Capital Group is an excellent steward of investor’s capital. Most assets sit in the peer group’s cheapest decile. This is a promising global equity option, and there’s little reason to believe the fund can’t build on its record. |
Morningstar Pillars | |
People | High |
Parent | High |
Process | Above Average |
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