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A Reliable World Large-Stock Option With a Superior Record

Alec Lucas, Ph.D.

Alec Lucas: Gold-rated American Funds New Perspective is one of the most reliable options in the world large-stock Morningstar Category. Since its 1973 inception, the fund has focused on companies benefiting from changing global trade patterns and navigated various protectionist measures along the way. 

Regardless of market climate, American's multimanager system sets up this fund for success. Other than sticking to companies that receive at least 25% of their revenues from outside their home region and have at least a $3 billion market cap float at time of purchase, this fund's seven named managers are free to run their separate sleeves of the overall portfolio in line with their own styles. 

The fund's portfolio stays grounded in multinational blue chips, but it isn't lacking in aggressive picks, as the presence of Tesla attests. Since entering the portfolio in early 2015, Tesla's struggles to turn a profit have led it to be more than 3 times as volatile as the MSCI All-Country World Index. Yet, thanks to the fund's globally diversified portfolio, the fund itself has hardly missed a beat and maintains a superior record over the long and short term.