Introduction
The American Funds New Perspective Fund is a mutual fund that invests in a diversified portfolio of companies based outside of the United States. The fund focuses on companies with strong growth potential and operates on a long-term investment approach, making it ideal for investors with a horizon of at least five years. In this guide, we’ll explore the American Funds New Perspective Fund in greater detail, including its investment strategy, performance, and other essential aspects.
Investment Strategy
The American Funds New Perspective Fund invests in companies from developed and emerging markets outside of the United States. The fund seeks companies that can generate high returns on invested capital over a long period. The fund does not limit itself to any particular industry or sector; rather, it seeks opportunities in diverse markets and industries.
Portfolio Holdings
As of June 30, 2021, the American Funds New Perspective Fund had total net assets of $70.7 billion. The fund held 231 individual stocks, and its top holdings were in the technology, consumer discretionary, and healthcare sectors.
Performance
The performance of the American Funds New Perspective Fund has been impressive. Over the past year, the fund had a total return of 41.05%, and its ten-year average annual return was 17.34%. While past performance is not indicative of future results, the long-term track record of the fund is certainly noteworthy.
Management Team
The American Funds New Perspective Fund is managed by a team of skilled professionals. The portfolio managers, led by David G. Polak, have long tenures with the fund, providing continuity and stability.
Fees and Expenses
As with any mutual fund, fees and expenses are an important consideration. The American Funds New Perspective Fund has a net expense ratio of 0.75%, making it competitive with other similar funds.
Tax Considerations
Investors should consider the tax implications of investing in the American Funds New Perspective Fund. The fund may generate income that is subject to federal, state, and local taxes. Additionally, any capital gains realized from the sale of fund shares may be taxable.
Who Should Invest in the American Funds New Perspective Fund?
The American Funds New Perspective Fund may be an appropriate investment for individuals seeking exposure to international markets and companies with growth potential. The fund’s focus on high-quality companies with a track record of generating returns on invested capital is an attractive feature for long-term investors.
FAQs
1. What is the investment strategy of the American Funds New Perspective Fund?
The fund invests primarily in companies outside of the United States that have strong growth potential and can generate high returns on invested capital over a long period.
2. What sectors does the American Funds New Perspective Fund invest in?
The fund invests in a diverse set of sectors, with its top holdings in the technology, consumer discretionary, and healthcare sectors.
3. What is the performance of the American Funds New Perspective Fund?
The fund has had strong performance, with a total return of 41.05% over the past year and a ten-year average annual return of 17.34%.
4. What are the fees and expenses associated with the American Funds New Perspective Fund?
The fund has a net expense ratio of 0.75%, making it competitive with other similar funds.
5. Who should consider investing in the American Funds New Perspective Fund?
The fund may be an appropriate investment for individuals seeking to diversify their portfolio with exposure to international markets and companies with growth potential.
6. What is the tax implication of investing in the American Funds New Perspective Fund?
Investors should consider the potential tax implications of investing in the fund, as it may generate income subject to federal, state, and local taxes, as well as taxable capital gains.
7. What is the investment minimum for the American Funds New Perspective Fund?
The investment minimum for the fund is $250.
8. Is the American Funds New Perspective Fund actively or passively managed?
The fund is actively managed by a team of skilled professionals.
9. What is the long-term investment approach of the American Funds New Perspective Fund?
The fund operates on a long-term investment approach, seeking to identify high-quality companies with strong growth potential that can generate returns on invested capital over a long period.
10. What is the net asset value of the American Funds New Perspective Fund?
As of June 30, 2021, the fund had total net assets of $70.7 billion.
Conclusion
The American Funds New Perspective Fund is an excellent option for investors seeking exposure to international markets and companies with growth potential. The fund’s strategy of investing in high-quality companies with a track record of generating returns on invested capital over a long period has resulted in impressive long-term performance. Investors should evaluate their individual investment objectives and consider the tax implications and fees associated with investing in the fund before committing any funds.
