Capital Group New Perspective (AU) aims to achieve long-term capital growth by seeking to take advantage of investment opportunities generated by changes in international trade patterns and economic and political relationships. Future income is a secondary objective. The strategy has a global mandate that allows our portfolio managers to pursue pockets of growth, secular trends and global trade patterns wherever these may occur without any geographic constraints. In our view the best way to capture these trends is by investing in blue-chip-quality companies across the market cap spectrum that we believe have the potential to develop into leading multinationals. We believe capturing these trends requires globally integrated research and multiple perspectives. Our organisation is aligned to this and our portfolio is built with only our highest conviction ideas.
For the month ended 31 August 2023, Capital Group New Perspective Fund (AU) returned 1.2%1 before fees and 1.1%2 after fees, while the index returned 1.1%3. For the 12-month period, the fund returned 23.2%1 before fees and 22.3%2 net of fees, compared to the index’s return of 20.6%3.
Relative contributors
• Health care: Stock selection and, to a lesser extent, an above-index holding in the health care sector buoyed relative results. An above-index position in pharmaceutical firm Novo Nordisk was a bright spot as shares climbed 17% on strong clinical trial results for the obesity drug Wegovy and after it hiked full-year sales and operating profit guidance.
• Consumer staples: Stock selection in the consumer staples sector also lifted returns on a relative basis. A position in Bunge was a plus as shares gained 6% after the agribusiness and food company surpassed second-quarter earnings estimates and raised its full-year profits outlook.
• Industrials: The choice of stocks in the industrials sector added relative value. Holding Caterpillar was beneficial as shares rose 6%, trading at record highs after the maker of construction machinery and heavy equipment beat second-quarter results forecasts, with surging sales and improving profit margins.
Relative detractors
• Consumer discretionary: Stock selection in the consumer discretionary sector hurt relative returns. A belowindex holding in Amazon proved costly as shares rose 3% after second-quarter earnings and revenue beat analysts’ forecasts, with a better-than-anticipated contribution from its cloud business.
• Communication services: The choice of stocks in the communication services sector detracted slightly from relative results. An above-index position in Meta Platforms was a drag as shares lost 7% amid profit taking following a strong run for the stock over recent months.
• Stock level: An above-index position in ASML was a hindrance. Shares fell 7% against worries on the global economy and the outlook for near-term demand as well as the impact of upcoming controls on the semiconductor equipment maker’s exports to China.
What is Capital Group New Perspective (AU) Capital Group New Perspective (AU) is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Fundamental Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Capital Group New Perspective (AU) has Assets Under Management of 949.09 M with a management fee of 0.95%, a performance fee of 0.00% and a buy/sell spread fee of 0%.
How has the investment product performed recently? The recent investment performance of the investment product shows that the Capital Group New Perspective (AU) has returned -0.12% in the last month. The previous three years have returned 6.3% annualised and 11.83% each year since inception, which is when the Capital Group New Perspective (AU) first started.
How is risk measured in this investment product? There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Capital Group New Perspective (AU) first started, the Sharpe ratio is NA with an annualised volatility of 11.83%. The maximum drawdown of the investment product in the last 12 months is -2.8% and -23.44% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product? Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Capital Group New Perspective (AU) has a 12-month excess return when compared to the Foreign Equity - Large Fundamental Index of 3.54% and 1.38% since inception.
Does the investment product produce Alpha over its Peers? Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Capital Group New Perspective (AU) has produced Alpha over the Foreign Equity - Large Fundamental Index of NA% in the last 12 months and NA% since inception.
What are similar investment products? For a full list of investment products in the Foreign Equity - Large Fundamental Index category, you can click here for the Peer Investment Report.
What level of diversification will Capital Group New Perspective (AU) provide? Capital Group New Perspective (AU) has a correlation coefficient of 0.95 and a beta of 0.87 when compared to the Foreign Equity - Large Fundamental Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers? For a full quantitative report on Capital Group New Perspective (AU) and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Capital Group New Perspective (AU) with the Developed -World Index? For a full quantitative report on Capital Group New Perspective (AU) compared to the Developed -World Index, you can click here.
Can I sort and compare the Capital Group New Perspective (AU) to do my own analysis? To sort and compare the Capital Group New Perspective (AU) financial metrics, please refer to the table above.
Has the Capital Group New Perspective (AU) been independently verified by SMSF Mate? This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Capital Group New Perspective (AU)? If you or your self managed super fund would like to invest in the Capital Group New Perspective (AU) please contact Level 18 56 Pitt Street Sydney NSW 2000 Australia via phone 61-2-8038-0800 or via email -.
How do I get in contact with the Capital Group New Perspective (AU)? If you would like to get in contact with the Capital Group New Perspective (AU) manager, please call 61-2-8038-0800.
Comments from SMSF Mates SMSF Mate does not receive commissions or kickbacks from the Capital Group New Perspective (AU). All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - July 31, 2023 • For the month ended 31 July 2023, Capital Group New Perspective Fund (AU) returned 2.1%1 before fees and 2.0%2 after fees, while the index returned 2.4%3. For the 12-month period, the fund returned 18.5%1 before fees and 17.6%2 net of fees, compared to the index’s return of 16.9%3.
Relative detractors
• Information technology: The choice of stocks in the information technology sector weighed on relative returns. An above-index position in Taiwan Semiconductor Manufacturing was detrimental as shares fell 2% after the semiconductor foundry warned of a likely 10% decline in revenue for 2023 and a significant delay to the start of production at its new facility in Arizona.
• Financials: Stock selection and a below-index position in the financials sector hindered relative results. An above-index holding in AIA was a negative. Shares eased 2% over July as sentiment on the Asia-focused insurer continued to be pressured by worries on its sales outlook given flagging momentum in the Chinese economy.
• Health care: An above-index exposure to the health care sector detracted on a relative basis, although this was mostly offset by positive stock selection. In particular, an above-index position in Novo Nordisk proved costly as shares slid 1% after the European Medicines Agency began an investigation into reports of suicidal risk linked to its obesity drugs. There were also further reports of shortages for Novo Nordisk’s weight loss treatment, Wegovy.
Relative contributors
• Energy: The choice of stocks in the energy sector also contributed positively. Holding Schlumberger was beneficial as shares jumped 19% after OPEC and Russia agreed to cut crude oil production, thereby boosting sentiment on the outlook. The exploration and production services firm was anticipated to indirectly benefit from a higher price environment for crude
Performance Commentary - May 31, 2023 For the month ended 31 May 2023, Capital Group New Perspective Fund (AU) returned 1.2%1&2 before and after fees, while the index returned 1.0%3. For the 12-month period, the fund returned 14.0%1 before fees and 13.1%2 net of fees, compared to the index’s return of 11.8%3.
Relative contributors
• Communications services: Stock selection in the communication services sector boosted relative returns. An above-index position in Meta Platforms was helpful as shares gained 10% on positive sentiment around its drive to improve efficiency and the growing revenue potential of short-form videos.
• Industrials: The choice of stocks in the industrials sector was helpful on a relative basis. A holding in Copart was beneficial as shares rose 11%. The vehicle auction company beat third-quarter fiscal results forecasts, helped by year-on-year growth in total service revenue and vehicle sales.
• Energy: Both stock selection and a below-index exposure in the energy sector added relative value. In particular, not holding oil major ExxonMobil was supportive, with the shares losing 13% as crude oil prices sank on concerns around global economic growth and the outlook for demand.
Relative detractors
• Consumer discretionary: The selection of stocks in the consumer discretionary sector weighed on relative results. A below-index position in Amazon was detrimental as shares rallied 14% amid investor enthusiasm for stocks with exposure to AI. Amazon recently launched a suite of AI models that allow companies to build generative AI applications of their own.
• Health care: An above-index exposure to the health care sector detracted slightly. Holding BeiGene hurt as shares slid amid profit taking following especially strong returns in the prior month. First-quarter earnings were modestly ahead of analysts’ forecasts though revenue marginally trailed estimates.
• Company level: A below-index position in NVIDIA proved costly. Shares surged 36% after the chipmaker beat first-quarter results and guidance estimates, while highlighting soaring demand for AI-related products.
Performance Commentary - February 28, 2023 For the month ended 28 February 2023, Capital Group New Perspective Fund (AU) returned 2.8%1 before fees, while the index returned 1.5%3; net of fees, the fund returned 2.7%2. For the 12-month period, the fund returned -2.7%1 before fees and -3.5%2 net of fees, compared to the index’s return of -1.3%3.
Relative contributors
• Consumer discretionary: Stock selection in the consumer discretionary sector added to relative returns. An above-index exposure to Tesla was beneficial as the shares gained 19%. Recent price cuts through late January have seen Tesla record strong orders for its vehicles while the company also benefited from the US Internal Revenue Service’s (IRS) updated clean vehicle classification rules, which prompted an increase in the price cap of its Model Y vehicle.
• Health care: The choice of stocks in the health care sector buoyed relative results, although an above-index holding was a slight negative. A position in biotechnology firm Seagen was helpful as the shares jumped 29% after it posted better-than-forecast fourth-quarter 2022 earnings. Shares were also boosted by reports that pharmaceutical giant Pfizer had entered into talks to acquire the company.
• Communication services: Stock selection in the communication services sector boosted returns on a relative basis. Holding Meta Platforms was a positive as the shares gained 17% after fourth-quarter 2022 revenue surpassed estimates and the social media group announced a US$40 billion share buyback.
Relative detractors
• Information technology: Stock selection in the information technology sector hurt relative returns. A belowindex position in Apple was a drag as the shares rose 2% despite the company posting its first year-over-year sales decline since 2019 in the fourth quarter of 2022. Apple cited a strong dollar, production issues in China and the overall macroeconomic environment as affecting sales but pointed to an improving picture in 2023. Revenue from Apple’s services business reached a record high in the fourth quarter.
• Consumer staples: Stock selection in the consumer staples sector also modestly hindered relative returns. An above-index position in Nestlé hurt as the shares lost 5% after the food giant’s fourth-quarter 2022 results disappointed, with gross margin continuing to come under pressure from higher input costs.
• Stock level: A below-index holding in NVIDIA detracted as shares of the semiconductor designer soared 19% after fourth-quarter 2022 results and guidance beat analysts’ estimates.
Performance Commentary - January 31, 2023 For the month ended 31 January 2023, Capital Group New Perspective Fund (AU) returned 4.6%1 before fees, while the index returned 3.1%3; net of fees, the fund returned 4.5%2. For the 12-month period, the fund returned -12.0%1 before fees and -12.7%2 net of fees, compared to the index’s return of -8.0%3.
Relative contributors
• Consumer discretionary: Stock selection in the consumer discretionary sector buoyed relative returns. An above-index position in Tesla was beneficial as the shares jumped 41%, rallying after fourth-quarter earnings beat estimates and orders surged in January as price cuts boosted demand for its cars. The electric vehicle maker announced a further round of price cuts in January, raising the prospect it could grab more market share from rivals.
Relative detractors
• Financials: Stock selection in the financials sector held back relative returns. An above-index position in AIA Group detracted on a relative basis as the shares rose by just 2% over the month, held back by profit taking. This followed a substantial rebound for the stock at the end of 2022 on hopes China’s economic reopening would boost the Asia-focused insurer’s earnings
Performance Commentary - December 31, 2022 For the quarter ended 31 December 2022, Capital Group New Perspective Fund (AU) returned 2.0% before fees and 1.8% net of fees, while the index returned 4.1%. For the 12-month period, the fund returned -20.4% before fees and -21.0% net of fees, compared with the index return of -12.5%.
Relative detractors
• Consumer discretionary: Stock selection and, to a lesser extent, an above-index sector holding in the consumer discretionary sector weighed on relative returns. A position in electric vehicle (EV) maker Tesla hurt as shares plunged 54% over the quarter, suffering from negative sentiment on CEO Elon Musk’s acquisition of Twitter and his related sales of Tesla stock. There were also worries on the outlook amid signs of flagging demand, with Musk warning he anticipated a serious recession in 2023.
• Energy: A below-index exposure to the energy sector detracted from relative returns. Not holding ExxonMobil was a negative as the shares jumped 27% after the oil major beat third-quarter earnings and revenue estimates while raising its dividend. ExxonMobil later announced it would ramp up its share buyback programme to US$50 billion through 2024 versus its previous pledge to repurchase US$30 billion of stock through 2023.
• Financials: Positioning in the financials sector more than offset the benefits of positive stock selection on a relative basis. A position in CME Group was a drag as the shares fell 2%, suffering from falling market volatility over the fourth quarter. There were also concerns that CME would face less favourable operating conditions in 2023 given the especially high levels of market volatility and intense trading activity seen across capital markets during much of 2022.
Relative contributors
• Information technology: The choice of stocks and, to a lesser extent, a below-index holding in the information technology sector buoyed relative returns. A below-index position in Apple was beneficial as the shares fell 6%, suffering from rising concerns over production delays in China and worries over the demand outlook for iPhones as well as the broader smartphone market in 2023. The technology giant nevertheless beat third-quarter earnings and revenue estimates, with strong contributions from iPhone sales and services.
• Health care: Stock selection and an above-index exposure in the health care sector added to relative results. Novo Nordisk was a bright spot as the shares surged 23% after third-quarter earnings topped estimates and Novo Nordisk raised full-year sales growth guidance, pointing to accelerating demand for its diabetes drugs and especially strong sales growth for its weight loss treatments.
• Industrials: The choice of stocks in the industrials sector was also helpful. An above-index holding in Caterpillar helped as shares jumped 47%. Caterpillar reported record profit for the third quarter as soaring demand for construction and heavy equipment pushed up both sales volumes and prices. Sales of oil and natural gas as well as mining equipment were particularly strong as resources companies increased spending.
Performance Commentary - November 30, 2022 For the month ended 30 November 2022, Capital Group New Perspective Fund (AU) returned 3.1%1 before fees, while the index returned 2.9%3; net of fees, the fund returned 3.0%2. For the 12-month period, the fund returned -15.7%1 before fees and -16.5%2 net of fees, compared to the index’s return of -6.4%3.
Relative contributors
Information technology: Stock selection in the information technology sector added to relative returns. A below-index position in technology giant Apple was a positive as the shares lost 3%, suffering from worries that shipments of the new iPhone 14 Pro smartphone would disappoint forecasts due to supply chain disruption.
Health care: The choice of stocks in the health care sector buoyed relative returns, although the portfolio’s above-index holding was a slight detractor. A position in Novo Nordisk was helpful as the shares rose 8% after the pharmaceutical company beat third-quarter earnings estimates and raised full-year sales growth guidance, pointing to accelerating demand for its diabetes drugs.
Financials: Stock selection in the financials sector also contributed positively to relative results. An above-index holding in AIA Group was beneficial as the shares jumped 32% over November, rallying on hopes that China would ease its zero-COVID policy and reopen its economy. The Asia focused insurer beat third-quarter earnings’ forecasts helped by revenue growth in China, Singapore, Thailand and Malaysia.
Relative detractors
Consumer discretionary: Stock selection in the consumer discretionary sector weighed on relative returns. An above-index position in electric-vehicle maker Tesla, the portfolio’s largest holding, was detrimental. Shares slid 14% over November, suffering from negative sentiment relating to CEO Elon Musk’s acquisition of Twitter alongside signs of waning demand for Tesla cars in China.
At the company level, a position in Chart Industries detracted from relative results. Shares plunged after the clean energy equipment maker agreed to acquire air and gas handling products provider Howden in a US$4.4 billion deal, prompting concerns over increased debt and the prospect of slower revenue growth.
Performance Commentary - October 31, 2022 For the month ended 31 October 2022, Capital Group New Perspective Fund (AU) returned 4.6%1 before fees, while the index returned 6.6%3; net of fees, the fund returned 4.5%2. For the 12-month period, the fund returned -15.8%1 before fees and -16.6%2 net of fees, compared to the index’s return of -6.0%3.
Relative detractors
Consumer discretionary: Stock selection and, to a lesser extent, an above-index exposure in the consumer discretionary sector hurt relative returns. Electric vehicle maker Tesla was a drag given shares dropped 14% over October as longer duration assets were hit by expectations of even higher US interest rates. The electric vehicle maker missed third-quarter revenue expectations, although earnings and profit topped forecasts.
Information technology: The choice of stocks in the information technology sector weighed on relative results. A position in semiconductor foundry Taiwan Semiconductor Manufacturing Company (TSMC) was a negative as the shares fell 8% after the US imposed new controls to prevent US companies from exporting advanced semiconductors to China that could be used for Chinese military applications. The move raised concerns over the outlook for TSMC’s sales to Chinese customers.
Relative contributors
Industrials: The choice of stocks in the industrials sector benefited relative results. Shares of construction machinery and equipment maker Caterpillar soared 33% after third-quarter earnings and revenue topped forecasts, buoyed by favourable price realisation and higher sales volume.
Utilities: The choice of stocks and a below-index holding in the utilities sector also had a small positive impact on relative returns. A position in AES buoyed relative returns as the shares gained 16%, with sentiment continuing to strengthen on the back of the recent US congressional approval of the Inflation Reduction Act given its tax credits for solar energy investment
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