US Videos

Blue Chips Fill This Fine World-Stock Fund

Alec Lucas, Ph.D.

Alec Lucas: Gold-rated American Funds New Perspective is one of the best options in the world large-stock Morningstar category. The fund looks across the globe for promising companies whose markets extend beyond their home region. Its focus on multinational blue chips can include a double-digit stake in firms domiciled in emerging markets. 

But these companies tend be dominant global players in their industry. Current top-10-holding Taiwan Semiconductor Manufacturing, for example, is the world's largest contract chipmaker whose customers include Apple and Qualcomm. The fund has done well investing in tech stocks, especially semiconductor companies, but its portfolio remains diversified by sector and geography. 

The fund has seven veteran managers. In line with American Funds' multimanager system, each manager oversees a portion of the fund's asset base and is free to invest according to his or her own style. 

The fund had a down year in 2016 but bounced back well in 2017, finishing in the category's top quintile for the calendar year. That's in keeping with the fund's long-term record.