Capital Group, one of the world’s largest and most experienced active investment managers, with more than US$2.3 trillion1 assets under management, is celebrating 50 years of the Capital Group New Perspective strategy. At US$151.6 billion2, it is the largest global active equity strategy with a 50-year track record.

Launched in 1973, New Perspective has remained relevant for five decades through bottom-up research identifying companies that are driving and benefiting from transformational change. The strategy seeks to achieve long-term growth of capital by investing across a spectrum of multinational companies, ranging from established leaders to potential future global champions, that can offer an attractive combination of structural growth and resilience.3

The strategy’s exposure to different geographies, sectors, and style has evolved as new long-term investment opportunities have presented themselves: from investing in home computing in the 1970s and 1980s, mobile communications in the 1990s, to energy transition and digital disruption in the 2020s. A key contributor to the strategy’s long-term appeal has been its ability to identify companies in the early stages of their development and invest in them for the long term. 61% of the portfolio has been held for more than five years; 43% has been held for more than eight.4

Steven Smith, equity investment director at Capital Group, said: “We’re delighted to mark Capital Group New Perspective strategy’s 50th anniversary. New Perspective’s structural flexibility has helped it benefit from five decades of transformational change. With a broader range of multinational companies likely to lead the next market cycle, we believe that a portfolio that is unrestricted by geographies, sectors, or style should be better equipped to adjust to our new reality of investing.”

Feike Goudsmit, Managing Director Northern Europe, Benelux, France, and Middle East at Capital Group, commented: “High inflation, geopolitical realignment, and ongoing concerns about recession have driven many investors to take flight from markets and shift into cash-like investments. Despite the uncertainty, over a multi-year horizon, investors may be better served taking their cash off the sidelines as this environment may still present opportunities for long-term investors focused on fundamentals. Now may be a good time to consider shifting out of cash. Capital Group’s New Perspective strategy could play a key role in helping investors meet their long-term financial goals.”