January, 2023
For the quarter ended 31 December 2022, Capital Group New Perspective Fund Hedged (AU) returned 5.2%1 before fees and 5.0%2 net of fees, while the index returned 7.1%.3 For the 12-month period, the fund returned -25.4%1 before fees and -26.0%2 net of fees, compared with the index return of -17.7%.3
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.
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 thirdquarter earnings and revenue estimates, with strong contributions from iPhone sales and services.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPHAU-q-8.pdfDecember, 2022
For the quarter ended 31 December 2022, Capital Group New Perspective Fund Hedged (AU) returned 5.2% before fees and 5.0% net of fees, while the index returned 7.1%. For the 12-month period, the fund returned -25.4% before fees and -26.0% net of fees, compared with the index return of -17.7%.
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 program 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 healthcare 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPHAU-q-7.pdfSeptember, 2022
For the quarter ended 30 September 2022, Capital Group New Perspective Fund Hedged (AU) returned -4.4%1 before fees and -4.5%2 net of fees, while the index returned -5.5%.3 For the 12-month period, the fund returned -24.4%1 before fees and -25.1%2 net of fees, compared with the index return of -18.1%.3
Relative contributors
• Consumer discretionary: Stock selection and, to a lesser extent, an above-index exposure in the consumer discretionary sector benefited relative results. A large above-index position in electric vehicle maker Tesla was a positive as the stock surged 18%. The company reported a smaller-than expected drop in quarterly profit, with earnings surpassing forecasts and helped by a number of price increases for its cars. Output from Tesla’s Shanghai factory also saw rapid improvement following the end of coronavirus-related disruption.
• Information technology: The portfolio’s positioning in the information technology sector detracted from relative results. A below-index exposure to Apple was a negative as the stock rose 1%. The technology giant beat earnings estimates for the April-June quarter, with record revenue driven by the iPhone and Services business. Apple’s active installed base of devices hit an all-time high for all of its major product segments.
Relative detractors
• Financials: Stock selection weighed on relative returns in the financials sector. A position in pan-Asian insurer AIA Group hurt results as the stock lost 23% on growing concerns surrounding the Chinese economy amid the country’s ongoing zero-COVID policy and fragile property market conditions. AIA reported a first-half loss with revenue and the value of new business declining in the face of COVID-19 lockdowns in China.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPHAU-q-6.pdfJune, 2022
For the quarter ended 30 June 2022, Capital Group New Perspective Fund Hedged (AU) returned -18.1%1 before fees and -18.3%2 net of fees, while the index returned -14.3%.3 For the 12-month period, the fund returned -20.2%1 before fees and -21.0%2 net of fees, compared with the index return of -13.6%.
Relative detractors:
• Consumer discretionary: Stock selection and an above-index sector exposure hurt relative returns over the quarter. Electric vehicle maker Tesla was the overall portfolio’s top relative detractor as shares slide against a deteriorating economic outlook, higher input costs and supply chain constraints.
• Communication services: The selection of communications services stocks also detracted on a relative basis. Stocks trading on high-multiples suffered amid pronounced equity market rotation. Returns for Facebook owner Meta Platforms and Netflix were further pressured by results that fell short of analysts’ expectations.
Relative contributor:
• Financials: Stock selection in the sector proved positive as financials was the only sector to have contributed to relative returns during the quarter. Shares of pan-Asian insurer AIA held up better than the wider market, supported by hopes for an improvement in revenue over the second quarter after coronavirus disruption in China weighed on sales in the first three months of the year.
March, 2022
For the quarter ended 31 March 2022, Capital Group New Perspective Fund Hedged (AU) returned -9.5%1 before fees and -9.7%2 net of fees, while the index returned -5.1%. 3 For the 12-month period, the fund returned 5.5%1 before fees and 4.5%2 net of fees, compared with the index return of 7.9%. 3 Investments in the communication services and energy sectors weighed on relative returns. However, the consumer discretionary sector helped on a relative basis.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPHAU-q-4.pdfDecember, 2021
For the quarter ended 31 December 2021, Capital Group New Perspective Fund Hedged (AU) returned 6.6%1 before fees and 6.4%2 net of fees, while the index returned 6.6%. 3 For the 12-month period, the fund returned 20.2%1 before fees and 19.1%2 net of fees, compared with the index return of 20.2%. 3 • 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. Thirdquarter 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.
September, 2021
• For the quarter ended 30 September 2021, Capital Group New Perspective Fund Hedged (AU) returned 0.9%1 before fees and 0.7%2 net of fees, while the index returned -0.4%. For the 12-month period, the fund returned 30%1 before fees and 28.7%2 net of fees, compared with the index return of 26.6%.
• Investments in the consumer discretionary and communication services sectors helped on a relative basis. However, the materials and financials sectors weighed on relative returns.
Despite risks to the outlook for global growth given impacts from the coronavirus and uncertainty surrounding the global trade environment, in terms of equity market returns, we continue to believe company fundamentals remain the primary driver of long-term share price returns.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPHAU-q-2.pdfJune, 2021
For the quarter ended 30 June 2021, Capital Group New Perspective Fund Hedged (AU) returned 8.3%1 before fees and 8.0%2 net of fees, while the index returned 7.0%. 3 For the 12-month period, the fund returned 43.0%1 before fees and 41.6%2 net of fees, compared with the index return of 35.3%. • Investments in the communication services and health care sectors helped on a relative basis. However, the consumer discretionary and information technology sectors weighed on relative returns.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPHAU-q-1.pdfApril, 2021
For the month ended 30 April 2021, Capital Group New Perspective Fund Hedged (AU) returned 4.5%1 before fees and 4.4%2 on a net of fees basis, while the index returned 3.7%3. For the 12-month period, the fund returned 51.6%1 before fees and 50.2%2 net of fees, compared to the index’s return of 40.3%3.
Health care: Stock selection in the health care sector was a key contributor to positive relative returns. A position in NovoCure was the largest contributor as its share price rose 54%. In early April the company announced it received the go-ahead to accelerate a pivotal phase 3 study regarding its medical device Optune, which is designed to treat advanced-stage non-small-cell lung cancer.
• Consumer discretionary: Stock selection in the consumer discretionary sector added value. A position in Tesla was a key contributor as its shares rose 6%. Tesla’s share price dipped in March as rising long-term bond yields led to a broad selloff in highly favoured growth stocks, but recovered some strength in April as investor concerns around inflation eased.
• Communication services: Investments in communication services companies were also among the largest contributors over the month. A position in Facebook was particularly helpful as its shares rose 10%. The social media giant announced strong results for the first quarter of the year, reporting revenue growth of 44% yearon-year (on a constant currency basis).
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPHAU-m.pdfDecember, 2020
For the quarter ended 31 December 2020, Capital Group New Perspective Fund Hedged (AU) returned 15.2%1 before fees and 15.0%2 net of fees, while the index returned 12.2%. For the 12-month period, the fund returned 29.3%1 before fees and 28.1%2 net of fees, compared with the index’s return of 11.2%. 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: Currency Hedged
peer_benchmark: Foreign Equity - Currency Hedged Index
broad_market_index: Developed -World Index
manager_contact_details: Array
ticker: CIM0008AU
release_schedule: Quarterly
commentary_block: Array
factsheet_url:
https://www.capitalgroup.com/adviser/au/en/fund-centre.CGNPHAU.html
Right sidebar -> Quarterly fund commentary
fund_features:
Capital Group New Perspective Hedged (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, while limiting exposure to currencies other than A$ through passive hedging. Future income is a secondary objective.
structure: Managed Fund