Fund Spotlight: flexible global fund offers something different

The final quarter of 2025 marked a sign of caution for growth-focused strategies, with the global large-cap growth sector experiencing the largest outflows of any Morningstar Category over this period.

Following a sustained period of inflows and strong performance, investors sought broader diversification and explored alternative themes including the value and equity income space.

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With equity markets concentrated, volatility of growth-companies elevated and economic uncertainties still on investors’ minds, it might be tempting to focus on market timing or short-term style rotations.

A more pragmatic approach, however, may be to allocate to a strategy designed to grow through cycles and structural disruptions over the long term. The Capital Group UK New Perspective P ACC fund offers precisely that: a bottom-up, globally flexible mandate that is not constrained by style, region or sector.

Originally launched in 1973, the strategy has a long-established track record, with it opening in 2024 to provide access for UK investors.

The fund seeks long-term capital growth through a genuinely unconstrained global equity approach. Its flexibility allows the managers to invest in their highest-conviction ideas across markets, without being tied to a single investment style or geographic focus.

A defining characteristic of Capital Group is its distinctive multi-manager structure. Rather than relying on a lead manager supported by analysts, the portfolio is divided among 10 investment professionals, each independently managing a sleeve of the fund.

The longest-serving manager, Robert Lovelace, who joined Capital Group in 2000, heads up the whole strategy. This structure aims to reduce key-person risk and smooth return outcomes through diversification of thought and style.

Supporting the portfolio managers is a global research platform of analysts who conduct in-depth fundamental research. Analysts are also allocated a portion of capital to manage directly, aligning research with portfolio outcomes. The result is a diversified portfolio reflecting the best ideas across the firm’s investment bench.

What does the fund invest in?

The strategy focuses on companies positioned to benefit from evolving global trade patterns and the broader structural shifts reshaping the global economy. The team’s current view is that beyond artificial intelligence (AI), forces such as healthcare innovation, an emerging industrial renaissance and changing global consumer dynamics have the potential to drive earnings growth across a wider range of businesses. The portfolio is constructed with this backdrop in mind, seeking to identify companies structurally advantaged by durable and evolving global themes.

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While global in remit, the mandate requires portfolio companies to generate at least 25% of revenues from outside their home region and to have a market capitalisation float of at least $3 billion (£2.2 billion) at the time of purchase. This framework naturally leads to a portfolio primarily comprised of large multinational businesses with globally diversified revenue streams, complemented by selective exposure to emerging markets.

Although the aggregate portfolio exhibits a modest growth bias, individual managers retain stylistic autonomy. Diversification is a core feature, with approximately 250 holdings currently in the portfolio.

From a geographic perspective, the portfolio is differentiated versus its MSCI All Country World Index benchmark, exhibiting an underweight allocation to the United States (53.3% vs 65.9%) and an overweight position in Europe (25.8% vs 15.1%). Over its very long track record the fund has diversified from developed markets to include more emerging markets holdings, which account for 8.3% of the portfolio (a little under the benchmark weight).

Technology remains the largest sector exposure at 23.4%, although this represents a relative underweight versus the benchmark, which allocates 26.7% to this sector. This allocation was trimmed from being an overweight position prior to 2019.

Meanwhile, the fund is overweight across industrials, communications and consumer discretionary. Currently, portfolio managers remain balanced in assessing the true addressable market of individual companies. They are not only focused on firms involved in AI infrastructure but also companies that are able to embed AI into their products and services meaningfully.

How has the fund performed?

The fund has struggled versus the benchmark over the past three and five years, as have most funds within this sector. In particular, 2022 was poor with detractors largely US tech names including Tesla Inc (NASDAQ:TSLA), Shopify Inc Registered Shs -A- Subord Vtg (NASDAQ:SHOP) and Meta Platforms Inc Class A (NASDAQ:META).

Over a longer 10-year horizon, the strategy has demonstrated its ability to deliver through different growth and value environments, generating an annualised return of +13.9%, ahead of both the index +13.1% and peers +11.2%.

Source: Morningstar Total Returns (GBP) to 31 January 2026. Past performance is not a guide to future performance.

Why do we recommend this fund?

Capital Group’s long-established multi-manager structure remains a key differentiator. By dividing the portfolio across many experienced investors, the firm reduces key-person risk while encouraging diversity of thought and investment style. This structure is reinforced by a deep global analyst bench, with research analysts’ decisions directly aligned to portfolio outcomes.

Importantly, aided by the team approach Capital Group has demonstrated an ability to transition managers over time without materially altering the character or risk profile of its strategies, an often-underappreciated strength in long-term fund selection.

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For investors seeking global equity exposure, the New Perspective strategy provides a flexible, stylistically agnostic approach, focused on multinational companies positioned to benefit from structural change. Its diversified construction, disciplined process and ability to invest across regions and sectors allow it to navigate shifting market conditions without being anchored to a single theme or style bias.

Combined with a competitive ongoing charge of 0.68%, which remains among the lowest in its peer group, the fund represents a compelling option for investors looking to access global growth opportunities through a proven and differentiated framework.

The fund has a place as a core Global Equity strategy on ii’s Super 60 list of investment ideas.

Please find the latest factsheet here.