Capital Group has rolled out an OEIC version of its New Perspective fund.
The strategy first launched in 1973 in the US, and was available as a SICAV in 2015. It invests in multinationals that could benefit from long-term global growth.
Since the US version launched, it has returned an average 13.7% per year, while the MSCI All Country World Index has returned 10.1% a year over the same period.
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The global equity strategy aims to provide long-term growth of capital, and is not restricted by style, region or sector. The flexible approach allows the strategy to capture the firm’s highest conviction ideas in global equities.
For instance, the US version had a peak exposure of 43% to telecoms, media and tech companies during the 1990s boom, while it played the rise of EM and the urbanisation of China with over 20% of its revenue exposure in the 2000s coming from emerging markets.
The OEIC has a 0.68% total expense ratio.
The fund currently has 10 portfolio managers, with each manager overseeing a different sleeve of the fund in line with their investment expertise.
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At a media briefing in London this morning (19 September), Capital Group investment director Steven Smith said the global economy may be on the cusp of a new era, with a confluence of factors coming together such as deglobalisation, advancements in artificial intelligence and healthcare.
“If we are right and we have entered the early innings of a new economic regime, we believe this will define the next decade of equity market investing, and this will have implications for equity markets,” he said.
“First and foremost, earnings growth could once again become one of the primary drivers of total returns from stock markets and individual stocks, which is a welcome return to fundamentals for research-driven active managers like Capital Group.”
Smith added that the team believes equity market leadership will broaden out from the US large cap tech stocks that have dominated returns in recent times.
“Leaders of stock markets in one era rarely stay the leaders in a new economic regime and in another decade. Simply put, we think there will be greater breadth of equity market leadership going forward.”
