KEY BENEFITS
Growth in an ever-evolving, innovative economy
The New Economy fund seeks to invest in companies that are ground-breaking and forward-thinking. This means that they have the potential to define tomorrow’s world and achieve long-term results for your clients.
The growth opportunities of tomorrow
Focused on identifying fast-growing companies that drive growth through innovation
Companies across all themes and sectors
Invests in companies of various sizes across industries to seek out early and hidden opportunities
ESG integration and beyond
Integrates investment-led ESG considerations as well as specific ESG exclusions and an explicit carbon footprint target1
A track record of strong results
Strategy has delivered attractive long-term results for more than 35 years2
THINGS TO CONSIDER
Working toward long-term growth while considering risks
While investing in global equities offers investors growth potential, it still carries general investment, equities, and other risks that may cause your investment to decline or suffer losses.
Risk considerations
Why invest in the fund
Identifying the pioneering companies of tomorrow
By using in-depth research to identify fast-growing companies around the world, the investment team actively seeks to deliver robust and long-term results..
The investment team behind the fund
Mathews Cherian
San Francisco
21 years with Capital
Timothy D. Armour
Los Angeles
41 years with Capital
Tomoko Fortune
San Francisco
6 years with Capital
Caroline Jones
San Francisco
21 years with Capital
Harold H. La
Hong Kong
26 years with Capital
Reed Lowenstein
New York
26 years with Capital
Lara Pellini
London
23 years with Capital
Richmond Wolf
Los Angeles
19 years with Capital
Research Portfolio
Research analysts are allocated
part of the fund assets to manage
Kickstart your client conversation
Additional information on how this fund can help meet your clients’ needs
- Finds companies at the cutting edge of the new economy
The fund invests in the companies of tomorrow; the organisations that will define how we will live our lives in the future. This means that they have the potential to deliver strong returns for your clients. - A fund with high-quality research at its heart
The New Economy investment team uses its extensive bottom-up research capabilities to discover companies that are at the forefront of change and that are achieving growth using innovation. - ESG integration and beyond
We believe active stewardship helps enhance long-term outcomes for investors. We integrate ESG into our investment process with the goal of identifying material issues that matter most to investors. Furthermore, the fund applies specific ESG and norms-based exclusions as well as having an explicit carbon footprint target1, which helps promote social and environmental characteristics. - Strong results history
This fund is no fad. In fact, the New Economy strategy has been around for more than 35 years since it was first pioneered in 1983. Over the long term, the strategy has delivered attractive results for its investors across different market environments.2
Past results are not a guarantee of future results.
We are in a golden era of innovation at a time marked by volatile market conditions. This macro backdrop is favourable as it uncovers diverse new trends and opportunities that offer strong growth potential.
- Fast-growing companies can define the economy of tomorrow.
- Innovation, new technologies and digital disruption have created a wealth of opportunities.
- New Economy pursues growth from diverse trends spanning industries, sectors and geography.
- Our deep research continues to uncover fast-growing companies that are defining our economy and our daily lives.
As 2022 continues to unfold, New Economy is positioned to address near- and long-term opportunities and challenges by having exposure to:
- The growth stories of tomorrow
- Cutting-edge businesses at the forefront of change
- Companies, not themes, across all market capitalisation ranges
Furthermore, the inclusion of ESG criteria helps promote social and environmental characteristics.
The investment objective of the New Economy fund is to achieve long-term growth of capital for your clients by investing in securities of companies with long-term growth potential. The fund also aims to manage a carbon footprint that is at least 30% lower than the index1, and evaluates and applies ESG and norms-based screening to implement and exclusion policy relating to investments in corporate issuers.
The strength and breadth of our research has helped uncover innovative companies across industries. Our bottom-up approach:
- Places emphasis on the quality of an individual company
- Leverages the rigorous fundamental research and extensive experience of equity analysts
- Seeks to engage with companies to help understand and shape their long-term strategy
- Fully integrates ESG considerations, which is deeply woven into our research process
We look for innovative companies across all sectors and industries. Our competitors tend to simply equate ‘innovation’ with technology funds – or an even narrower framework.
We, on the other hand, focus on and invest in organisations that we believe, as a result of our fundamental research, are forward-thinking and cutting edge. We de-emphasise current trends and what is proving to be popular at any given moment, which makes for a more enduring long-term approach.
Active stewardship to help enhance long-term outcomes for investors
We believe a proactive approach makes us better stewards of our clients’ financial future. We integrate ESG into our investment process with the goal of identifying material issues that matter most to investors.
The incorporation of ESG risks and opportunities is deeply woven into our fundamental, bottom-up research process.
- The fund applies specific ESG and norms-based exclusions. It excludes companies within certain sectors as well as UN Global Compact violators.3
- The fund has an explicit carbon footprint target that is at least 30% lower than the reference index.2
Norms-based analysis determines whether an issuer complies with the universal principles in the United Nations Global Compact (UNGC).
Taking the long view
We base our investment decisions on a long-term perspective, aligning our goals with the interests of your clients. Superior, long-term returns are our goal. New Economy managers are rewarded for their results, not the level of assets they manage.
Breadth of experience
Our process enables individual investment professionals to act on their highest convictions while limiting the risk associated with isolated decision-making. We draw on their diverse experience to build the portfolio.
Deep, fundamental research
The scale and scope of our proprietary research, built over 90 years, allows us to uncover what we believe to be compelling investment opportunities for our clients. Investment analysts conduct thousands of research visits globally every year. This research is then combined with comprehensive macro analysis. This approach has been essential to the results we have delivered to our investors.
An active approach to ESG
The incorporation of ESG risks and opportunities is deeply woven into our fundamental, bottom-up research process. Our active investment process ensures a focus on the most material issues for each investment.
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organisation; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
Find out more about what this fund has to offer
WHY CAPITAL GROUP
A leader in global investing
For more than 90 years, we’ve been searching the world for long-term opportunities, making Capital one of the oldest global investors today.
Global investing credentials
US$2.8T
in total assets managed
27 years
average investment experience of our portfolio managers
US$2.2T
equity assets managed
Data as at 31 December 2024
High conviction investments. Diverse perspectives.
The Capital SystemTM is designed to produce highly diverse portfolios that deliver consistent long-term results, a smoother ride and management continuity over a range of market conditions.
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Don't hesitate to reach out if you have questions or need assistance.
Luis Arocha
Wealth Management Consultant
Southeast & Uruguay
+1 (305) 202-2913
Luis.Arocha@capgroup.com
Ben Ehrlich - CFA
Associate Business Development Manager
US Offshore
+1 (212) 641-1707
Ben.Ehrlich@capgroup.com
Mario Gonzalez-Perez
Head of Iberia &
US Offshore
Mario.Gonzalez@capitalgroup.com
Paulino Medina
Wealth Management Consultant
Texas & West Coast
+1 (832) 886-7255
Paulino.Medina@capgroup.com
Eileen Umanzor
Client Group Assistant
US Offshore
Eileen.X.Umanzor@capitalgroup.com
Alexandra Cerquone
Marketing Manager
US Offshore
Alexandra.Cerquone@capitalgroup.com
Eric Figueroa - CIMA, CAIA
Wealth Management Consultant
Southeast & Uruguay
+1 (305) 341-8525
Eric.Figueroa@capgroup.com
Jameel Jiwani
Wealth Management Consultant
Northeast
+1 (646) 265-9699
Jameel.Jiwani@capgroup.com
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Eddie Rascon - CIMA, CFP
Portfolio Strategist
US Offshore
+1 (210) 4742183
Eddie.Rascon@capgroup.com
For Financial Professional use only
As at 30 June 2022, Capital Group New Economy Fund (LUX) has adopted Sustainable Finance Disclosure Regulation (SFDR) article 8 requirements.
Data as at 31 December 2021 and attributed to Capital Group, unless otherwise specified.
- Carbon footprint target is based on weighted average carbon intensity. Index: MSCI All Country World Index.
- As at 30 June 2022 in USD terms. Capital Group New Economy Fund (LUX) was launched on 7 November 2019. The investment results referenced here are for the Capital Group New Economy 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 1 December 2019. Since launch, the strategy has returned 10.6% p.a. vs. 9.1% p.a. for MSCI ACWI. Results for the Capital Group New Economy Composite are asset-weighted and based on initial weights and monthly returns. Net of management fees and expenses for a representative Luxembourg fund share class (Z), applying the maximum Total Expense Ratio (TER). Please visit capitalgroup.com for further details. The index is MSCI All Country World Index (net dividends reinvested) from 31 December 2000. Previously MSCI All Country World Index (gross dividends reinvested) from 31 December 1987; MSCI World Index (net dividends reinvested) from 31 December 1983.
- Companies that have any ties to cluster munitions, landmines, biological/chemical weapons, depleted uranium weapons, blinding laser weapons, incendiary weapons, nuclear weapons and/or non-detectable fragments.
Fund risks
Counterparty risk: Other financial institutions provide services to the fund such as safekeeping of assets, or may serve as a counterparty to financial contracts such as derivatives. There is a risk the counterparty will not meet their obligations.
Emerging markets risk: Investments in emerging markets are generally more sensitive to risk events such as changes in the economic, political, fiscal and legal environment.
Equities risk: The prices of equity securities may decline in response to certain events, including those directly involving the companies whose securities are owned by the fund, overall market changes, local, regional or global political, social or economic instability and currency fluctuations.
Liquidity risk: In stressed market conditions, certain securities held by the fund may not be able to be sold at full value, or at all. This could cause the fund to defer or suspend redemptions of its shares, meaning investors may not have immediate access to their investment.
Operational risk: The risk of potential loss resulting from inadequate or failed internal processes, people and systems or from external events.
Sustainability risk: Environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of an investment of the fund.
Risk factors you should consider before investing:
- This material is not intended to provide investment advice or be considered a personal recommendation.
- The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment.
- Past results are not a guarantee of future results.
- If the currency in which you invest strengthens against the currency in which the underlying investments of the fund are made, the value of your investment will decrease. Currency hedging seeks to limit this, but there is no guarantee that hedging will be totally successful.
- Some portfolios may invest in financial derivative instruments for investment purposes, hedging and/or efficient portfolio management.
- There are additional Counterparty, Emerging markets, Equities, Liquidity, Operational and Sustainability risks associated with this fund.