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 hypothetical growth of USD10,000 in the New Perspective strategy against the MSCI ACWI, a key global equity index, over the years, through the ups and inevitable downs that are an inescapable part of investing.
The information in relation to the index is provided for context and illustration only. The fund is an actively managed UCITS. It is not managed in reference to a benchmark.
Past results are not a guarantee of future results.
Data as at 31 Dec 2020.
The investment results shown here are for the Capital Group New Perspective Composite (defined as a single group of discretionary portfolios that collectively represent a particular investment strategy or objective). This is intended to illustrate our experience and capability in managing this strategy over the long term.
This information supplements or enhances required or recommended disclosure and presentation provisions of the GIPS® standards, which if not included herein, are available upon request. GIPS is a trademark owned by CFA Institute.