We believe in a distinctive way of managing money.  

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THE CAPITAL SYSTEM

Our system prioritizes consistent and repeatable investment results.

Jonathan Bell Lovelace 1968

Early in Capital Group history, our leaders realized that their funds would outlast the professionals who managed them.


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.



The best of both worlds.

CRMC Meeting 1961. Jonathan Bell Lovelace,
Chuck Schimpff, Coleman Morton, Jim Fullerton, 
Mary Bauer

The Capital System can give advisers and investors the best of both worlds: the upside of high-conviction ideas and the power of collaboration.

At Capital Group, we assemble teams of managers who have different investing styles and complementary strengths to help foster a diversified investing approach.

The benefits of our multiple portfolio manager approach can be boiled down to simple maths: If, for example, a fund has a star manager with 120  investment ideas, that’s a lot of ideas for one person to keep track of. But imagine if the fund were divided among four managers, including each of their 30 highest conviction ideas — ideas they've explored inside out — that’s the strength of The Capital System.

For illustrative purposes only.


A long term perspective.

For decades, many of our strategies have delivered strong long-term results, helping investors stay on the path to achieving their financial goals.

 


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 USD10,000 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.

 

Capital Group New Perspective strategy: The value of a hypothetical USD10,000 invested at launch. Launched over 45 years ago.

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 30 Sep 2020.

Capital Group New Perspective Fund (LUX) was launched on 30 October 2015. 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. Our Luxembourg fund has been a member of this composite since the beginning of November 2015. 

1.   Results shown for the Capital Group New Perspective Composite, from inception at 31 March 1973, are asset-weighted and based on initial weights and monthly returns. Net of management fees and expenses for a representative Luxembourg fund share class (B), applying the maximum Total Expense Ratio (TER). Please visit capitalgroup.com for further details. Source: Capital Group 
2.   MSCI All Country World Index (ACWI) (net dividends reinvested) from 30 September 2011; previously MSCI World (net dividends reinvested). Source: MSCI

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.


Aim for a smoother ride.

A group of managers with complementary investing styles on a single fund can diversify risk. This is part of what has, over time, made our portfolios generally less volatile in down markets.


Losing less when the market dips means investors stand to gain more when it climbs. And a steadier journey helps investors stay the course for the long term.

Take a look at these examples of significant global market downturns from recent history. Here we compare the Capital Group New Perspective strategy and the MSCI ACWI in times of significant market decline, and illustrate how each fared in the dips and the speed of their recovery. You can see that the New Perspective strategy fell less and recovered faster.

Result and recovery of New Perspective Strategy during market corrections of more than -10%1

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.

All data as at 30 June 2020 unless otherwise specified. For illustrative purposes only. Returns in US$ terms. 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. 

  1. Results for the Capital Group New Perspective Composite, from inception at 31 March 1973, are asset-weighted and based on initial weights and monthly returns. Net of management fees and expenses for the B share class as a representative share class, applying the maximum Total Expense Ratio (TER) of 165bps. Source: Capital Group 
  2. MSCI All Country World Index (ACWI) (with net dividends reinvested) from 30 September 2011; previously MSCI World (with net dividends reinvested). Source: MSCI 
  3. Defined as at least a 20% cumulative drop in market value. 
  4. Defined as when the MSCI ACWI from 30 September 2011 (previously MSCI World) with net dividends reinvested falls more than 10%. 
  5. Excess return over the duration of the down market. The excess return is calculated arithmetically. 

Built to last.

The Capital System has stood the test of time.


An innovative idea then and now, our unique multiple portfolio manager system has become a defining feature of our success. Distinct in the market and diverse in its strategy, The Capital System has helped many of our investment vehicles generate attractive long-term outcomes.

Morningstar Australasia have also recognised the long term potential of the Capital System in analysing our funds, with the Capital Group New Perspective Fund (LUX)  and the Capital Group New World Fund (LUX) both being gold-rated funds.

Our beliefs

Your goals power ours.

We have four core beliefs central to helping you succeed.

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