Global – Equity fund seekers should not consider taking a look at American Funds New Perspective A (ANWPX) at this time. ANWPX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
ANWPX is classified in the Global – Equity segment by Zacks, an area full of possibilities. Even though Global – Equity mutual funds invest in bigger markets like the U.S., Europe, and Japan, these kinds of funds aren’t limited by geography. Rather, they offer an investment strategy that utilizes the global economy to provide stable returns.
American Funds is based in Los Angeles, CA, and is the manager of ANWPX. American Funds New Perspective A made its debut in March of 1973, and since then, ANWPX has accumulated about $62.89 billion in assets, per the most up-to-date date available. A team of investment professionals is the fund’s current manager.
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 13.32%, and it sits in the top third among its category peers. If you’re interested in shorter time frames, do not dismiss looking at the fund’s 3 -year annualized total return of 8.42%, which places it in the middle third during this time-frame.
It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, ANWPX’s standard deviation comes in at 17.24%, compared to the category average of 14.29%. Over the past 5 years, the standard deviation of the fund is 18.91% compared to the category average of 15.52%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 1.03, so it is likely going to be as volatile as the market at large. Because alpha represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. ANWPX’s 5-year performance has produced a negative alpha of -3.25, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.