The prospects for global integration have become less certain amid rising populism and geopolitical tensions. Technological revolution, another disruptive trend, has also profoundly impacted individuals as well as industries and economies. Changes like these created a spectrum of challenges, but at the same time brought about investment opportunities.
Capital Group's New Perspective strategy, which has experienced more than four decades of market cycles, is well positioned to benefit from these changing patterns of world trade.
As at 30 June 2017. Source: Capital Group. Past results are not a guarantee of future results. Investment involves risks. The value of an investment and the income received from it can go down as well as up.
In the current economic environment, it is important to not just benefit from growth in world trade, but also to benefit from changing patterns of world trade. To do that, the New Perspective strategy invests in global companies that are well positioned to take advantage of secular growth trends and innovation.
The digital transformation knows few boundaries and are changing the economics of doing businesses across borders. Beneficiaries of this investment theme are companies that can benefit from the development of the global digital economy and the 'Internet of Things':
E-commerce, powered by the rapid rise in technology, is reshaping the supply chains of companies and forcing them to be located near end markets. The New Perspective portfolio managers like companies with distribution networks that cannot be replicated as well as unique brands that have high barriers to entry:
The new global consumer has spending power and is changing consumption patterns across the world. China, the largest e-commerce market in the world, is one important market that the New Perspective strategy is focused on. The strategy invests in companies that are well positioned to capture the growing demand of global consumers and changing consumer behaviours:
People are living longer and the world is ageing. The demand for medical drugs and treatments continues to grow and this is a multi-decade investment theme. Companies that fit into this theme focus on areas of unmet medical need that have leading drugs or treatments with long growth runways, and have track records in drug innovations:
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