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Citibank partners with Capital Group to sell its New Perspective Fund to Asia clients

The mega-fund is already available in Hong Kong and will be distributed in Singapore in February.

Capital Group has partnered with Citibank to provide its Capital Group New Perspective Fund (LUX) to the bank’s clients across Hong Kong and Singapore.

The New Perspective Fund (NPF) follows the same investment approach as Capital Group’s largest global equity strategy, New Perspective, which has a 50-year track record and $157.8bn in assets.

NPF is now available to Citibank’s clients in Hong Kong and will be made available to the bank’s clients in Singapore in February.

“We are pleased to broaden our relationship with Citibank and partner with them for the first time in Asia to offer one of our flagship global equity funds to their clients in the region,” said Grant Leon (main picture), head of global financial intermediaries, Asia and Europe, Capital Group, said in a statement.

Launched in 1973, the New Perspective strategy employs a bottom-up research approach to identify companies that are driving and benefiting from transformational changes in the evolving global economy and market landscape, according to the asset manager.

The $12.25bn Luxembourg Ucits was incepted in October 2015, and it has generated a cumulative return of 68.65% during the past five years, compared with 70.11% by its benchmark MSCI AC World index and 46.40% average for international equity funds available in Singapore, according to FE fundinfo.

Source: FE fundinfo. Data in US dollars.

The fund has an annualised volatility of 18.10% for the same period, compared with 15.64% for the index and 15.45% for the sector average.

The strategy seeks to achieve long-term growth of capital by investing across a spectrum of multinational companies, ranging from established leaders to potential future global champions that can offer an attractive combination of structural growth and resilience.

More than half (54.7%) is allocated to North American equities, with 28% to European equities and 4.5% to Asia Pacific (including Japan) equities, the fund’s factsheet shows. Top holdings include Microsoft, Novo Nordisk, Meta Platforms, Broadcom, and Taiwan semiconductor Manufacturing Company.

“We are delighted to be working with Capital Group to enrich our clients’ investment options through offering its Capital Group New Perspective Fund (LUX). This complements Citi’s wealth advisory service and strong mutual fund platform,” said Winnie Choi, Asia North Investment Advisory Head, Citi, in a statement.

Consistent with Capital Group’s multi-manager approach, NPF is managed by a team of ten portfolio managers, including Brady Enright and Jody Jonsson, with an average industry experience of 29 years and supported by a large global research team.  This structure “enhances diversity by incorporating multiple perspectives, allowing potential for portfolios to fare well in a variety of market conditions,” said Capital Group.

“Through understanding long-term trends and market changes, the strategy has proven its ability to adeptly navigate transformative shifts and volatility in the global economy. Its resilience and relevance are particularly compelling to investors in Asia in today’s volatile, uncertain, complex, and ambiguous world,” added Leon.

Headquartered in Los Angeles, Capital Group has assets under management of over $2.3trn.

Part of the Mark Allen Group.