They believed they had a responsibility to provide stability and management continuity to their investors, so they asked themselves a key question: If a portfolio manager left the firm, how could they keep funds going strong?
They pioneered a plan. By dividing portfolios into sections and giving each of the existing managers a portion to administer, no portfolio would be too dependent on a single person.
This distinctive way of managing money became The Capital SystemSM. By incorporating the highest conviction investment ideas of each manager in a portfolio, we aim to both increase the diversity of those ideas and reduce the volatility of a fund, which can give investors a smoother ride in bumpy markets.
For illustrative purposes only.
As an example, take a look at one of our largest and longest established global equity strategies, the Capital Group New Perspective strategy.Here we show the results of a A$10,000 hypothetical investment in the MSCI ACWI, a key global equity index, and compare it with the long-term results delivered by the New Perspective strategy since it was launched over 45 years ago.
Data as at 31 March 2021 unless otherwise stated.
1. Results prior to the launch of Capital Group New Perspective Fund (AU) (CGNPAU) on 20 November 2015 are derived from the American Funds New Perspective Fund in A$ from 31 March 1973. The strategy is advised by the same portfolio management team managing to the same investment objectives. The returns are after fees, based on the total management cost of 1.05% p.a. that was applicable to CGNPAU up until 30 April 2017 and 0.95% with effect from 1 May 2017. American Funds are not registered for sale outside of the United States. Source: Capital Group
2. MSCI ACWI ex Australia (with net dividends reinvested) from 20 November 2015; previously MSCI ACWI (with net dividends reinvested) from 30 September 2011 and MSCI World Index (with net dividends reinvested) prior to that. Source: MSCI
3. Net of management fees and expenses. Fund results are based on close of market returns (T+1). Source: Capital Group
4. The index shown is MSCI ACWI ex Australia (with net dividends reinvested). Source: MSCI
5. The excess return is calculated arithmetically.