Partner insight: Identifying future industry leaders early

Capital Group’s New Perspective strategy seeks resilience by investing in an eclectic mix of multinationals, says Steven Smith

clock • 1 min read
Partner insight: Identifying future industry leaders early

The Capital Group New Perspective strategy has a history of identifying future champions before they become industry-leading companies.

For example, the portfolio has held Google since its IPO in 2004, and we've owned TSMC - today the world's leading independent semi-conductor manufacturer - since 1999.

However, we're not just investing in the big, well-known, large-cap multinationals. We hold close to 300 names and include small to medium-sized, fast-growing companies that are expanding beyond their domestic markets. They often have disruptive business models, innovative technology and large and expanding addressable markets.

If we can find companies with those traits, then we can invest in them for a long time because their potential earnings and growth runways can be very long.

For example, portfolio managers of the strategy have been investing in digital transformation and disruption for some time. There are also exciting transformational health care companies in the portfolio.

Infrastructure is another significant sector, with holdings in companies that benefit from the next generation of infrastructure, including smart industrial companies and organisations exposed to vehicle electrification or 5G enablers.

We're investing in the rise of the mass-affluent emerging market consumer, powerful demographic trends, sustainability, resource stewardship, energy transition, renewables, nutrition and wellness.

There's a really eclectic mix of companies by geography, sector and size.

Data as at 31 December 2021. Source: Capital Group

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