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.
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.
What is Capital Group New Perspective Hdg (AU) Capital Group New Perspective Hdg (AU) is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Currency Hedged Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Capital Group New Perspective Hdg (AU) has Assets Under Management of 366.86 M with a management fee of 0.95%, a performance fee of 0.00% and a buy/sell spread fee of 0%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Capital Group New Perspective Hdg (AU) has returned 4.51% in the last month. The previous three years have returned 2.44% annualised and 15.47% each year since inception, which is when the Capital Group New Perspective Hdg (AU) first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Capital Group New Perspective Hdg (AU) first started, the Sharpe ratio is 0.59 with an annualised volatility of 15.47%. The maximum drawdown of the investment product in the last 12 months is -8.93% and -29.64% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Capital Group New Perspective Hdg (AU) has a 12-month excess return when compared to the Foreign Equity - Currency Hedged Index of 4.08% and 1.4% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Capital Group New Perspective Hdg (AU) has produced Alpha over the Foreign Equity - Currency Hedged Index of 0.24% in the last 12 months and 0.08% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - Currency Hedged Index category, you can click here for the Peer Investment Report.
What level of diversification will Capital Group New Perspective Hdg (AU) provide?
Capital Group New Perspective Hdg (AU) has a correlation coefficient of 0.96 and a beta of 1.09 when compared to the Foreign Equity - Currency Hedged Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on Capital Group New Perspective Hdg (AU) and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Capital Group New Perspective Hdg (AU) with the Developed -World Index?
For a full quantitative report on Capital Group New Perspective Hdg (AU) compared to the Developed -World Index, you can click here.
Can I sort and compare the Capital Group New Perspective Hdg (AU) to do my own analysis?
To sort and compare the Capital Group New Perspective Hdg (AU) financial metrics, please refer to the table above.
Has the Capital Group New Perspective Hdg (AU) been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Capital Group New Perspective Hdg (AU)?
If you or your self managed super fund would like to invest in the Capital Group New Perspective Hdg (AU) please contact Level 18 56 Pitt Street Sydney NSW 2000 Australia via phone 61-2-8038-0800 or via email -.
How do I get in contact with the Capital Group New Perspective Hdg (AU)?
If you would like to get in contact with the Capital Group New Perspective Hdg (AU) manager, please call 61-2-8038-0800.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Capital Group New Perspective Hdg (AU). All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - December 31, 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.
Performance Commentary - September 30, 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.
Performance Commentary - June 30, 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.
Performance Commentary - March 31, 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.
Performance Commentary - December 31, 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.
Performance Commentary - September 30, 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.
Performance Commentary - June 30, 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.
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