August, 2023
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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPAU-m-9.pdfJuly, 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
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPAU-m-1-2.pdfMay, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPAU-m-8.pdfFebruary, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/2302-Ausbil-CSGEF-Product-report.pdfJanuary, 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
December, 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.
November, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPAU-m-6.pdfOctober, 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
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPAU-m-5.pdfAugust, 2022
For the month ended 31 August 2022, Capital Group New Perspective Fund (AU) returned -2.7%1 before fees, while the index returned -2.0%3; net of fees, the fund returned -2.8%2. For the 12-month period, the fund returned -17.8%1 before fees and -18.6%2 net of fees, compared to the index’s return of -10.3%3.
Relative detractors
Consumer discretionary: Stock selection in the consumer discretionary sector detracted from relative returns. Electric vehicle (EV) maker Tesla, the portfolio’s largest holding, weighed on results as the stock fell 7% over US recession concerns, production disruptions in China and CEO Elon Musk’s sale of more Tesla stock to avoid an emergency sale of shares if he is forced to follow through on the acquisition of Twitter.
Health care: An above-index exposure and the choice of stocks in the health care sector weighed on relative results. A position in Zoetis was a key relative detractor as shares dropped 14% after the animal drugs company trimmed its full-year earnings and sales guidance due to higher FX headwinds although consumer demand for animal health products remained robust.
Materials: Stock selection in the materials sector also hurt relative returns. A position in Netherlands-based nutrition company DSM proved detrimental. The stock slid 18% as both volumes and margin were pressured by higher costs and lockdowns in China although the company’s pricing power was strong enough to offset the negativity.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPAU-m-4.pdfJuly, 2022
For the month ended 31 July 2022, Capital Group New Perspective Fund (AU) returned 7.0%1 before fees, while the index returned 5.4%3; net of fees, the fund returned 6.9%2. For the 12-month period, the fund returned -12.4%1 before fees and -13.2%2 net of fees, compared to the index’s return of -5.7%3.
Consumer discretionary: Stock selection and, to a lesser extent, an above-index holding in the consumer discretionary sector contributed positively to returns. A large position in Tesla was beneficial as the shares soared 32% over July. The electric vehicle maker was buoyed by a pick-up in output at its Chinese factory over June alongside a good set of second-quarter results, with earnings surpassing forecasts.
Communication services: The choice of stocks and, to a lesser extent, a below-index position in the communication services sector added to relative results. Not owning Chinese internet group Tencent was helpful as the stock slid 13%. Shares sold off after Tencent was sanctioned by China’s State Administration for Market Regulation for the way it had previously reported acquisitions. Sentiment was additionally pressured by a recent decision by Tencent’s largest shareholder to offload shares.
Industrials: Stock selection in the industrials sector was also positive for relative returns. A position in DSV was helpful as the shares gained 23%. The Danish transport and logistics company reported strong first-half results, with revenue boosted by higher freight rates. DSV also upgraded its full-year 2022 guidance and unveiled a new share buyback programme.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPAU-m-3.pdfJune, 2022
For the month ended 31 May 2022, Capital Group New Perspective Fund (AU) returned -2.7%1 before fees, while the index returned -0.8%3; net of fees, the fund returned -2.8%2. For the 12-month period, the fund returned -6.3%1 before fees and -7.1%2 net of fees, compared to the index’s return of 0.6%3.
• Although financial markets continue to look beyond the global pandemic they now face a more uncertain outlook due to inflationary pressures and slower economic growth. Monetary policy across major global central banks is changing. The interest rate outlook is more hawkish than previously expected as central banks attempt to address both rising actual inflation as well as elevated longer term inflation expectations. Against this backdrop, equity market leadership could broaden in 2022 and beyond compared with the narrow growth-driven markets of the past few years.
• By design, the portfolio is not positioned for a single outcome or ‘type’ of short-term market environment. Instead, it continues to offer exposure to both long term secular growth and cyclical growth opportunities. The portfolio is underpinned by a broad set resilient businesses that could provide stable foundations in the event of an economic slowdown. The portfolio also invests in companies across a variety of industries where we believe there is potential for strong pricing power in the context of underlying labour/input cost inflation.
• Keeping perspective and looking beyond short-term market volatility is critical in current markets. Combining our long-term investment horizon with the structural flexibility to reorientate the portfolio over the long-term has allowed the fund to achieve consistent and resilient excess returns over the medium to long-term.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPAU-m-2.pdfMay, 2022
For the month ended 31 May 2022, Capital Group New Perspective Fund (AU) returned -2.7%1 before fees, while the index returned -0.8%3; net of fees, the fund returned -2.8%2. For the 12-month period, the fund returned -6.3%1 before fees and -7.1%2 net of fees, compared to the index’s return of 0.6%.
Relative detractors:
• Consumer discretionary: The choice of stocks and, to a lesser extent, an above-index holding in the consumer discretionary sector hurt relative returns. Electric vehicle maker Tesla weighed on relative results as shares slid 13%. Production at the company’s Shanghai factory has been disrupted due to COVID-19 restrictions, which have also dampened vehicle sales. Uncertainty over CEO Elon Musk’s bid for Twitter also weighed on Tesla’s shares.
• Energy: A below-index exposure to the energy sector detracted from relative returns during May as oil and gas majors were buoyed by surging commodity prices. Not holding oil giant ExxonMobil hurt relative results as its shares gained 14% on the back of higher oil prices.
Relative contributors:
• Information technology: Stock selection in the information technology sector was modestly positive for relative returns. Having below-benchmark exposure to iPhone maker Apple was beneficial as its shares slid 5% on concerns over the pace of US rate hikes, rising inflation and weakening consumer confidence. Apple recently revealed that COVID-related supply constraints and industry-wide chips shortages were impacting its ability to meet customer demand, although revenue still rose 9% year on year in the latest quarter.
• Consumer staples: The choice of stocks in the consumer staples sector provided a slightly beneficial overall impact. Not holding superstore chain Walmart was helpful. Shares fell 16% as inflation hit first-quarter profits and the company lowered its earnings per share guidance for the full year, citing the unexpected costs that emerged in the first quarter.
April, 2022
For the month ended 30 April 2022, Capital Group New Perspective Fund (AU) returned -4.9%1 before fees, while the index returned -2.8%3; net of fees, the fund returned -4.9%2. For the 12-month period, the fund returned -2.6%1 before fees and -3.5%2 net of fees, compared to the index’s return of 2.8%.
Relative detractors:
• Consumer discretionary: The choice of stocks and, to a lesser extent, an above-index holding in the consumer discretionary sector weighed on relative returns. Holding Tesla was detrimental as the stock fell 19% over April. Shares in the electric vehicle maker slid as CEO Elon Musk sold significant amounts of Tesla stock to partially fund his planned acquisition of social network Twitter.
• Communication services: Stock selection in the communication services sector detracted from relative returns. Shares of Netflix slumped 49% when it announced it had suffered its first net subscriber loss in a decade. Netflix acknowledged competitors were eating into its audience and vowed to improve the quality of its programming. It also pledged to crack down on households that share other users’ accounts.
• Health care: The choice of stocks in the health care sector also had a negative impact on relative returns. Shares of Intuitive Surgical fell 21% over April. The company, which offers robotic products designed to improve clinical outcomes of patients through minimally invasive surgery, warned that supply constraints were hindering its ability to meet customer demand, while COVID-19 was weighing on procedures activity.
Relative contributors:
• At the stock level, a below-index exposure to NVIDIA was beneficial as the stock was down 32%. Shares were pressured by worries over the computing company’s outlook given slowing demand for GPUs used in crypto mining, as well as the impact of factory shutdowns in China.
• A position in Sherwin-Williams contributed positively, with the stock rising 10% after first-quarter 2022 earnings and revenue beat estimates. The paint and coating maker said it had benefited from strong demand for its products, assuaging concerns that a slowing housing market or inflation may be taking a toll on its business.
• A holding in Indian conglomerate Reliance Industries was another positive. Shares advanced 6% over the month, hitting a record high after the announcement of a tripartite partnership between Bodhi Tree Systems, Viacom18 and Reliance Projects & Property Management Services, a wholly owned subsidiary of Reliance Industries, to form one of the largest TV and digital streaming firms in India.
December, 2021
Three-month portfolio review:
• For the quarter ended 31 December 2021, Capital Group New Perspective Fund (AU) returned 5.9%1 before fees and 5.6%2 net of fees, while the index returned 6.0%.3 For the 12-month period, the fund returned 25.6% before fees and 24.4% net of fees, compared with the index return of 25.8%.
• Investments in the information technology and health care sectors weighed on relative returns. However, the consumer discretionary and consumer staples sectors helped on a relative basis.
Relative Detractors
• Information technology: Stock selection in the information technology sector weighed on relative returns. A below-index exposure to Apple detracted on a relative basis as its shares rose 26%. A position in PayPal also hurt after reports that the company was considering a bid for image sharing and social media platform Pinterest. The stock was further impacted after third-quarter revenue missed estimates and the company's guidance was poorly received by the market. PayPal was down 28% over the quarter.
• Health care: Stock selection in health care also detracted on a relative basis. Along with US-listed biotech stocks in general, shares in BeiGene came under pressure from concerns over US-China relations. Third-quarter earnings and revenue surpassed forecasts, nevertheless the stock closed down for the quarter.
• Cash: The portfolio's cash exposure (approx. 3%) detracted on a relative basis in the market rally.
Relative Contributors
• Consumer discretionary: Stock selection in the sector proved positive. Tesla was the largest positive contributor. Shares rallied after the company beat third-quarter revenue forecasts as it made record electric vehicle deliveries. Tesla also said it would continue to ramp up production at its Shanghai factory and forge ahead with plans to build new capacity in Texas and Berlin.
• Consumer staples: Stock selection in consumer staples added value on a relative basis, helped by a position in big-box retailer Costco which rose 27% over the quarter. A favourable consumer environment supported the share price. Furthermore, the company has continued to take market shares from competitors through the pandemic.
• Financials: Below-index exposure to financials, particularly banks, helped on a relative basis. CME Group was the largest positive contributor in the sector. Shares in the financial derivatives exchange were supported by its exposure to fixed income trading, which the market expects could benefit from an environment where the US Federal Reserve raises rates and tapers bond purchases.
December, 2020
For the quarter ended 31 December 2020, Capital Group New Perspective Fund (AU) returned 9.0%1 before fees and 8.8%2 net of fees, while the index returned 6.4%. 3 For the 12-month period, the fund returned 22.2%1 before fees and 21.1%2 net of fees, compared with the index’s return of 6.0%. The fund generated excess returns across regions and sectors with positive relative results achieved across seven of the 11 sectors. Investments in the consumer discretionary and information technology sectors were the largest positive contributors on a relative basis. However, the financials and health care sectors weighed on a relative returns.
Relative Contributors:
• Consumer discretionary: Following a fifth straight quarterly profit to 30 September, Tesla confirmed it is on track to deliver a record-breaking 500,000 cars in 2020. Sales were boosted by the rapid ramping up of production at its new Shanghai factory and the launch of its Model Y. Shares surged in November on news Tesla was to enter the S&P 500 in December.
• Information technology: ASML announced better-than-expected third-quarter earnings growth and forecast double-digit growth in 2021, it sounded a note of caution over sales of its newest tools and halted plans to sell its most advanced equipment to China following pressure from the US administration. Shares subsequently rallied strongly on the US presidential election result in anticipation of improved US/China relations and more relaxed restrictions on exporting technology to Chinese original equipment manufacturers.
Relative Detractors:
• Financials: Relatively light exposure and stock selection in the financials sector detracted on a relative basis. A position in credit ratings agency Moody's detracted as its shares rose only 0.3% over the period, lagging the market rally.
• Health care: Stock selection in the health care sector weighed on relative returns. Vertex Pharmaceuticals shares slid 13% after safety worries prompted the company to discontinue a clinical trial for its drug to treat patients with alpha-1 antitrypsin deficiency, a genetic condition linked to higher risk of lung and liver disease. The company plans to continue to advance trials for alternative drug candidates to treat alpha-1 antitrypsin deficiency.
asset_class: Foreign Equity
asset_category: Large Blend - Fundamental
peer_benchmark: Foreign Equity - Large Fundamental Index
broad_market_index: Developed -World Index
manager_contact_details: Array
ticker: CIM0006AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
Right sidebar -> Monthly Fund Commentary
https://www.capitalgroup.com/intermediaries/au/en/investments/fund-centre.CGNPAU.html#?id=AU60CIM00068&idCurrencyId=%20&idType=ISIN&marketCode=%20
fund_features:
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.
structure: Managed Fund