Why We Highly Rate American Funds New Perspective

Key Morningstar Metrics for American Funds New Perspective

• Morningstar Medalist Rating: Gold
• Process Pillar: Above Average
• People Pillar: High
• Parent Pillar: High

American Funds New Perspective’s (which includes the Capital Group-branded Luxembourg, Australian, and Japan vehicles) experienced managers and unrivaled analytical support ply a well-thought-out process focusing on firms benefiting from global trade.

Industry veterans steer this fund. Three of the fund’s 10 managers have served together since December 2005, with most-tenured Robert Lovelace serving more than two decades. All but one manager has been with the firm for at least 20 years. In March 2025, Barbara Burtin took over for Joanna Jonsson (who stepped off the fund Nov. 1, 2025) as one of the fund’s principal investment officers, in charge of allocating capital among the management team. She is an up-and-comer at the firm and has been on the fund for more than six years. Behind the management team sits a deep and talented analyst team, which consists of more than 100 members.

The managers employ a proven approach focusing on global multinationals that can take advantage of evolving global trade. Capital Group, the parent of American Funds, splits the fund’s USD 160 billion asset base as of October 2025 into individual sleeves among 10 named managers, a handful of undisclosed up-and-comers, and two analyst-run research sleeves. Two principal investment officers help ensure the fund’s sleeves meld together into a diversified global portfolio. The managers run their sleeves of the overall portfolio as they see fit but must stick to companies that receive at least 25% of their revenue from outside their home region and have at least a USD 3-billion market-cap float at the time of purchase.

The fund has been incredibly reliable at protecting capital in down markets, benefiting investors over the long term. Over the trailing five-, 10-, 15-, and 20-year periods through October 2025, the US fund outperformed the MSCI All-Country World Index and ranked in the global large-growth Morningstar Category’s top third or better each period. So far in 2025 through October, the fund handily outperformed the category, thanks to picks like Rolls-Royce Holdings RYCEY and TSMC TSM.

This is a topnotch global equity option, and there’s little reason to believe the fund can’t build on its record.

American Funds New Perspective: Performance Highlights

The fund has consistently delivered strong results. Its trailing returns for the five-, 10-, 15-, and 20-year periods through October 2025 all ranked in the global large-growth category’s top third or better. The fund placed in the category’s top half in nine out of 10 of the last calendar years, including in the top third in six of those. Since its 1973 inception and during the longest-tenured manager Robert Lovelace’s 20-plus years, it has trounced the category norm, the MSCI ACWI, and its former benchmark, the MSCI World Index. During Lovelace’s tenure, the fund also beat the global large-growth category benchmark, MSCI ACWI Growth Index, with which it is more closely correlated.

The fund ‘s focus on multinational blue chips has seldom hurt shareholders. In its 45-plus calendar years, the fund has lost money in only nine years (1974, 1990, 2000-02, 2008, 2011, 2018, and 2022). In each of those years, the fund lost significantly less than the benchmark, except for 2011. In 2022, the fund’s 25.8% loss was less than the category average and the growth index but lagged the MSCI ACWI. As growth bounced back in 2023 and 2024, the fund lagged the growth index but outpaced the peer norm. So far in 2025 through October, the fund has handily outperformed the category, thanks to picks like Rolls-Royce Holdings and TSMC.