Looking beyond traditional boundaries to capture the rise of developing economies

Capital Group has been a pioneer in EM since the 1980s and in 1999 launched the New World (NW) strategy, which focuses on the growth in developing economies from a multidimensional, global perspective – combining local EM businesses with global multinationals that have significant exposure to developing economies. We believe this can offer investors a more resilient way to capture the potential of EM investing – since its launch, the strategy has outpaced both EM and global equities.*

The strategy is now available to investors as a Luxembourg-domiciled fund (UCITS).

Past results are not a guarantee of future results.

As Capital Group New World Fund (LUX) launched on 28 October 2016, a meaningful track record has yet to be established, so the investment results shown here are for the Capital Group New World 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 2016.

* Data as at 31 December 2016. Returns for Capital Group New World Composite (7.6% p.a.) vs. MSCI Emerging Markets Index (7.0% p.a.) and MSCI All Country World Index (4.1% p.a.) over the strategy’s lifetime (30 June 1999 to 31 December 2016) in US dollar terms. New World: The results shown for the Capital Group New World Composite are asset-weighted and based on initial weights and monthly results. For illustrative purposes the figures used are net of management fees and expenses from a representative Luxembourg fund share class (Z), calculated with a Total Expense Ratio (TER) of 102.5bps. MSCI EM: With net dividends reinvested. Prior to 31 December 2000, MSCI Emerging Markets Index with gross dividends reinvested. MSCI ACWI: With net dividends reinvested. Prior to 31 December 2000, MSCI All Country World Index with gross dividends reinvested. Sources: Capital Group, 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.

A proven approach to managing an evolving asset class

Capital Group’s Emerging Markets Debt (EMD) strategy has the flexibility to invest across the broad EMD universe, so has the potential to capture the full range of opportunities and can help to mitigate the risks inherent in this asset class.