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. Use the chart below to compare the growth of AUD$10,000 in the New Perspective strategy1 against the index2 over the years, through the ups and inevitable downs that are an inescapable part of investing. You can build your own chart by customising the date range or viewing results against some of the more infamous market downturns, from the oil crisis of the 70s to the financial crisis of ’08.
|Capital Group New Perspective Fund (AU)
Investment results as at 31 December 2020 in A$ terms (after fees and expenses)
Lifetime: 20 November 2015 – 31 December 2020
|2015 1 month 10 days||-2.6||-3.2||0.5|
|2020 12 months||21.1||6.0||15.1|
Data as at 31 December 2020 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.