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American Funds New Economy F1 ANFFX Fund Analysis

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Morningstar’s Analysis ANFFX

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An Upcoming Manager Retirement on American Funds New Economy Does Not Change Ratings

null Stephen Welch

Stephen Welch

Analyst Note

Capital Group CEO and firm veteran Tim Armour will relinquish his manager duties on May 1 and retire at the end of 2023. He is the longest-serving manager on American Funds New Economy, but the firm has set this strategy up for success. Six of the eight managers have been disclosed in the past five years. The firm also disclosed experienced manager Paul Benjamin will officially join the lineup on May 1, 2023, keeping the management team at eight managers. In 2022, Mathews Cherian took over from Armour as the strategy’s lead principal investment officer in charge of allocating capital across the managers’ independently run sleeves. With the recent manager additions, which illustrated the firm’s methodical approach to adding investment talent, Cherian has several managers that have enough spare capacity to handle taking on more assets as he looks to distribute Armour’s allocation. As a result, Armour’s planned departure does not alter the strategy's Morningstar Analyst Ratings of Silver or Bronze across its 19 share classes. Benjamin has been managing a relatively small portion of assets in this strategy for less than one year, something Capital Group does regularly when adding managers to strategies. He has 17 years of industry experience, all at Capital Group, where he previously covered U.S. large-cap software companies. Benjamin also manages American Funds American Balanced ABALX and Fundamental Investors AMECX.

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