Capital Group New Perspective Fund
This is the flagship global equities strategy of Capital Group. It has a track record of 50 years, investing in some of the world’s largest multinational firms that are able to benefit from transformational changes in the global economy. The fund has a unique multiple manager structure, with each of the nine named managers running their ‘sleeve’ in their own way. Their best ideas are blended together for a diversified portfolio.
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Jody Jonsson is vice chair of Capital Group and president of Capital Research and Management Company, where she is also an equity portfolio manager. With 35 years in the investment industry, she has spent 33 of those years at Capital Group. Earlier in her career, Jody covered sectors like insurance and U.S. household and personal care as an equity investment analyst at Capital. Before joining Capital, she worked as an equity research analyst at Fidelity and in public finance at Irving Trust. She holds an MBA from Stanford and a bachelor’s degree in economics from Princeton, graduating cum laude.
Noriko Honda Chen is an equity portfolio manager at Capital Group and a member of the Capital Group Management Committee. With 34 years of experience in the investment industry, she has spent 25 years at Capital Group. As an equity investment analyst, she covered Asian infrastructure, building materials, construction companies, and the oil and gas sectors. She also served as a research director for a global group. Before joining Capital, Noriko worked in corporate finance and research at Worldsec International in Hong Kong. She holds a bachelor’s degree in economics from Williams College and studied at Keio University in Tokyo. Noriko is based in San Francisco.
Brady L. Enright is an equity portfolio manager at Capital Group with 32 years of investment experience, 27 of which have been at Capital Group. He previously worked as an equity investment analyst, covering U.S. small-cap companies and commercial services. Before joining Capital, Brady was an equity research analyst and portfolio manager at Provident Investment Counsel. He holds an MBA from Harvard Business School, a bachelor's degree in biology from Stanford University, and is a Chartered Financial Analyst® (CFA) charterholder. Brady is based in San Francisco.
Robert W. Lovelace is an equity portfolio manager and chair of Capital International, Inc., with 38 years of experience at Capital Group. He began his career as an equity investment analyst, focusing on global mining and metals companies as well as firms in Mexico and the Philippines. Rob graduated summa cum laude and Phi Beta Kappa from Princeton University with a degree in mineral economics (geology) and is a Chartered Financial Analyst® charterholder. He is based in Los Angeles.
Jody Jonsson is vice chair of Capital Group and president of Capital Research and Management Company, where she is also an equity portfolio manager. With 35 years in the investment industry, she has spent 33 of those years at Capital Group. Earlier in her career, Jody covered sectors like insurance and U.S. household and personal care as an equity investment analyst at Capital. Before joining Capital, she worked as an equity research analyst at Fidelity and in public finance at Irving Trust. She holds an MBA from Stanford and a bachelor’s degree in economics from Princeton, graduating cum laude.
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Company Description
Capital Group has history dating back to 1931 and is one of the largest fund managers in the world, managing over $2.5 trillion across equity and debt funds. The firm is privately owned by its employees, with over 400 investment professionals across its equities and fixed income divisions. Capital Group has offices globally including its native United States, the UK, China and Japan. It uses a unique multiple portfolio manager structure, with investment professionals given capital to invest from very early on in their careers, leading to a strong corporate culture and long-standing employees. Despite its size, the company only runs c.40 strategies globally, allowing it to focus on delivering long-term returns for clients.
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Talking Factsheet
Quote from the Fund Manager
I like to describe New Perspective as a fund of global champions. Typically they have globally diversified customer bases, global supply chains, and they're robust enduring companies with the potential to offer resilience and growth.
Jody Jonsson
Co-Manager
Investment process
Capital Group New Perspective fund has a unique multiple manager approach, looking to capture the companies that are leading change in global trends. The team aims to identify companies in the early stages of their growth trajectory and will want to hold them as they become future winners. As such, the portfolio will consist of future and global champions, with the latter of these providing some defensiveness for the fund.
To build the portfolio, the fund has nine portfolio managers, each with their own sleeve, and then an tenth sleeve run by a team of research analysts. Each of these groups are given their own capital to invest their way. They all have slightly different approach, some preferring more concentrated portfolios whilst others take a more diversified approach.
The work on the stock universe is supported by the vast analyst resource at Capital Group that will analyse a stock’s financial statements in detail. Company meetings are an essential part of the analysis, with the managers meeting the corporate team of the companies they look to invest into and challenge them on their approach and outlook, as well as discuss any issues the financial analysis may have uncovered.
The highest conviction ideas are put together to make the final portfolio. Each manager will have an allocation, with around 20% of the total fund assets given to the c.80 strong research team. Here, each analyst, often sector or subsector specialists, can invest a small amount of the fund into their highest conviction ideas if they see value in it. Each will put forward around four stocks and will try and balance them between cyclical and defensive ideas to ensure the portfolio doesn’t drift too far to one investment style. This creates around 180-190 small positions in this sleeve of the portfolio and this ‘tail’ has added around a quarter of the fund’s outperformance historically.
At an individual level, the managers can have more conviction, but this is balanced in the final portfolio to ensure single stock risk doesn’t dominate the portfolio.
Risk
Investment officers monitor risk throughout the process to ensure the final portfolio remains balanced and considerate of all risks. One of these includes sell discipline, ensuring managers and analysts review their stocks on a regular basis especially after stock news. Managers and analysts are each renumerated on the relative performance of their stock selections, rather than the impact they have on the overall fund, meaning the portfolio becomes the highest conviction ideas of the investment professionals rather than a fight for capital.
ESG
ESG - Integrated
Capital Group is committing significant resources to supporting the integration of ESG factors into its investment decisions. The analyst teams will incorporate ESG factors into their in-depth analysis of a stock. They have investment frameworks which they use, populating data fields from their analysis of the company, including the financial statement and wider data sources. They will also use some external data to help identify issues they may have missed. The depth of the analyst resource allows them to focus on the most pressing issues for each company, rather than take a blanket approach. Any serious issues identified can then be analysed in greater depth, as well as providing the basis for ongoing monitoring, to ensure the problems are not getting worse. The firm will also engage and vote at AGMs. There is a dedicated team for governance and proxy issues, as well as a specialist team for ESG research, which will also conduct engagement with companies.
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