New World | Capital Group

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What do China’s Tencent and Switzerland’s Nestlé have in common? Not much, at first glance.
But a closer look reveals more. Both companies are thriving on growth in the developing world. Tencent is an internet giant today; Nestlé fills supermarket shelves from India to Brazil.
Capital Group’s New World strategy seeks companies that stand to benefit from the rise of developing economies, no matter where they are based. Read on to learn more about its unique approach.

Look beyond traditional boundaries

Research that connects the dots

Track record of resilient growth
X

Gain true developing market exposure

 
There is more than one way to seek exposure to developing markets today.
Naturally, developing market companies come to mind. Some enjoy a clear home advantage. But there are also areas where global multinationals dominate, thanks to their strong brands and expertise. Look no further than the healthcare and luxury goods industries for proof.
This is why the Capital Group New World strategy values flexibility. Unlike a typical emerging market fund, it invests in both developing and developed market companies that stand to gain from the growth of emerging economies.
In selecting companies, the strategy looks at where they reap revenues, and not just where they are based. This allows it to cast a much wider net to seize the best investment opportunities.
 
A flexible approach helps capture the full dynamism of developing economies

Revenue exposure of MSCI EM and ACWI indices

d12-chart-1_869x2750px

Source: Capital Group and MSCI. Data as at 31 December 2006 and 2016 respectively. EM revenue exposure is calculated by measuring the economic exposure to EM countries as defined by MSCI EM Index excluding South Korea and Taiwan.

 

X

Going the extra mile in research

 

A global opportunity set calls for a global research effort.
At Capital Group, hundreds of investment analysts conduct in-depth analysis around the world to unearth the best investment ideas. But the work does not stop there.
Global collaboration is key. Analysts communicate regularly with other investment professionals to discuss and debate ideas. Diverse perspectives sharpen insights, and often shed light on opportunities that traditional research is likely to miss.

 

Few asset managers can match the scale and the scope of our proprietary research effort 
d12_em-map_869x350px_1

Data as at 31 December 2015.

Analysts bring their top investment ideas to portfolio managers’ attention.
The Capital Group New World strategy has nine portfolio managers. Each manages a slice of the portfolio according to his or her investment approach. This gives them the freedom to invest in what they think are the best opportunities. The result is a diversified and high-conviction portfolio with the potential to deliver attractive results over time.
 

An experienced team

Portfolio
managers

 

 

Location
Years with Capital
Years in profession

Mark Denning

Los Angeles
34
34

Robert Lovelace

Los Angeles
31
31

Robert Neithart

Los Angeles
29
29

Nicholas Grace

London
23
27

Jonathan knowles

Singapore
25
25

Portfolio
managers

 

 

Location
Years with Capital
Years in profession

Wahid Butt

London
13
25

Bradford Freer

Los Angeles
23
24

Winnie Kwan

Hong Kong
17
20

Christopher Thomsen

London
19
19

Research portfolio

Global team


Reflects current portfolio manager team. Years of investment experience and years with Capital Group as at 31 December 2016. 

X

Delivering attractive risk-adjusted returns

 
What has a flexible and research-driven approach achieved for the Capital Group New World strategy? Plenty.
The strategy has produced strong risk-adjusted returns compared with emerging market and global equities over time. In tough markets, its resilience shines through.
 

Compelling risk-return profile

Annualised return and volatility (since inception to 31 December 2016, before fees)

d12_annualised-return-and-volatility_869x385px

Sources: Capital Group, MSCI. Data as at 31 December 2016 in US dollar terms. New World strategy: the results shown for the Capital Group New World Composite are asset-weighted and based on initial weights and monthly results, and are shown before fees and expenses. MSCI ACWI: MSCI All Country World Index (net dividends reinvested). MSCI EM: MSCI Emerging Markets Index (net dividends reinvested). New World strategy net of 1.75% fees has an annualized return of 6.5% and volatility of 17.3% since inception. Past results are not a guarantee of future results.

Measure of stability in downturns

Excess returns of New World strategy vs. MSCI EM and ACWI indices (annualised, before fees)

d12_excess-returns-of-new-world-strategy_869x460px

Sources: Capital Group, MSCI. Data as at 30 November 2016. Results are of Capital Group New World Composite before fees. Excess returns of New World strategy vs. MSCI EM Index net of 1.75% fees are 13.0%, 16.1%, 4.9% and 14.3% for Dot.com bubble, Global financial crisis, Europe sovereign debt crisis and Chinese stock market crash respectively. Excess returns of New World strategy vs. MSCI ACWI Index net of 1.75% fees are 0.1%, 3.0%, -2.1% and -4.8% for Dot.com bubble, Global financial crisis, Europe sovereign debt crisis and Chinese stock market crash respectively. Past results are not a guarantee of future results.

Look beyond traditional boundaries

Gain true developing market exposure

 
There is more than one way to seek exposure to developing markets today.
Naturally, developing market companies come to mind. Some enjoy a clear home advantage. But there are also areas where global multinationals dominate, thanks to their strong brands and expertise. Look no further than the healthcare and luxury goods industries for proof.
This is why the Capital Group New World strategy values flexibility. Unlike a typical emerging market fund, it invests in both developing and developed market companies that stand to gain from the growth of emerging economies.
In selecting companies, the strategy looks at where they reap revenues, and not just where they are based. This allows it to cast a much wider net to seize the best investment opportunities.
 
A flexible approach helps capture the full dynamism of developing economies

Revenue exposure of MSCI EM and ACWI indices

d12-chart-1_869x2750px

Source: Capital Group and MSCI. Data as at 31 December 2006 and 2016 respectively. EM revenue exposure is calculated by measuring the economic exposure to EM countries as defined by MSCI EM Index excluding South Korea and Taiwan.

 

Research that connects the dots

Going the extra mile in research

 

A global opportunity set calls for a global research effort.
At Capital Group, hundreds of investment analysts conduct in-depth analysis around the world to unearth the best investment ideas. But the work does not stop there.
Global collaboration is key. Analysts communicate regularly with other investment professionals to discuss and debate ideas. Diverse perspectives sharpen insights, and often shed light on opportunities that traditional research is likely to miss.

 

Few asset managers can match the scale and the scope of our proprietary research effort 
d12_em-map_869x350px_1

Data as at 31 December 2015.

Analysts bring their top investment ideas to portfolio managers’ attention.
The Capital Group New World strategy has nine portfolio managers. Each manages a slice of the portfolio according to his or her investment approach. This gives them the freedom to invest in what they think are the best opportunities. The result is a diversified and high-conviction portfolio with the potential to deliver attractive results over time.
 

An experienced team

Portfolio
managers

 

 

Location
Years with Capital
Years in profession

Mark Denning

Los Angeles
34
34

Robert Lovelace

Los Angeles
31
31

Robert Neithart

Los Angeles
29
29

Nicholas Grace

London
23
27

Jonathan knowles

Singapore
25
25

Portfolio
managers

 

 

Location
Years with Capital
Years in profession

Wahid Butt

London
13
25

Bradford Freer

Los Angeles
23
24

Winnie Kwan

Hong Kong
17
20

Christopher Thomsen

London
19
19

Research portfolio

Global team


Reflects current portfolio manager team. Years of investment experience and years with Capital Group as at 31 December 2016. 

Track record of resilient growth

Delivering attractive risk-adjusted returns

 
What has a flexible and research-driven approach achieved for the Capital Group New World strategy? Plenty.
The strategy has produced strong risk-adjusted returns compared with emerging market and global equities over time. In tough markets, its resilience shines through.
 

Compelling risk-return profile

Annualised return and volatility (since inception to 31 December 2016, before fees)

d12_annualised-return-and-volatility_869x385px

Sources: Capital Group, MSCI. Data as at 31 December 2016 in US dollar terms. New World strategy: the results shown for the Capital Group New World Composite are asset-weighted and based on initial weights and monthly results, and are shown before fees and expenses. MSCI ACWI: MSCI All Country World Index (net dividends reinvested). MSCI EM: MSCI Emerging Markets Index (net dividends reinvested). New World strategy net of 1.75% fees has an annualized return of 6.5% and volatility of 17.3% since inception. Past results are not a guarantee of future results.

Measure of stability in downturns

Excess returns of New World strategy vs. MSCI EM and ACWI indices (annualised, before fees)

d12_excess-returns-of-new-world-strategy_869x460px

Sources: Capital Group, MSCI. Data as at 30 November 2016. Results are of Capital Group New World Composite before fees. Excess returns of New World strategy vs. MSCI EM Index net of 1.75% fees are 13.0%, 16.1%, 4.9% and 14.3% for Dot.com bubble, Global financial crisis, Europe sovereign debt crisis and Chinese stock market crash respectively. Excess returns of New World strategy vs. MSCI ACWI Index net of 1.75% fees are 0.1%, 3.0%, -2.1% and -4.8% for Dot.com bubble, Global financial crisis, Europe sovereign debt crisis and Chinese stock market crash respectively. Past results are not a guarantee of future results.




This communication is intended for advisers and professional investors only, and should not be relied upon by retail investors. Past results are not a guarantee of future results. This information is neither an offer nor a solicitation to buy or sell any securities or to provide any investment service. While Capital Group uses reasonable efforts to obtain information from sources which it believes to be reliable, Capital Group makes no representation or warranty as to the accuracy, reliability or completeness of the information. This communication is not intended to be comprehensive or to provide investment, tax or other advice. It has been prepared for multiple distributions and does not take account of the specific investment objectives of individual recipients and it may not be appropriate in all circumstances. The information provided in this communication is of a general nature and does not take into account your objectives, financial situation or needs. It has not been reviewed by any regulator. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs.
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