American Funds New World Fund (NEWFX)
Also in the Fantastic 51, the New World Fund (NEWFX) tends to invest outside the country, opposite to its counterpart above.
Mandated to invest at least 35% in qualified developing countries, NEWFX currently has 80% of its $23 billion in fund assets invested outside the U.S. The primary benefactors of this are Europe and Asia, which together account for 67% of the total portfolio. The only U.S.-based stock in its top 10 holdings is Google (GOOG) with a weighting of 1%. Like AMCPX, however, the top 10 holdings represent a very small percentage of the overall holdings.
The largest industry representation is from Internet-related companies which account for 6.7% of the portfolio. In terms of specific holdings, the top stock is Baidu (BIDU), the Chinese search engine, with a 1.8% weighting.
In addition to the equities, the fund’s mandate allows it to invest as much as 25% of its assets in debt securities, some of which can be investment grade or below. At the moment, that percentage is slightly over 10%.
All told, With 263 stock holdings and 149 bond holdings, investors receive a very diversified, international portfolio.
Since its inception in May 1999, this particular offering from American Funds has achieved an average annual return of 8.6%. That’s good when you consider that 32% of the holdings are invested in Europe, which has only recently begun to rebound.
NEWFX charges 1.06% in expenses and also has a 5.75% sales charge.
The New World Fund and the AMCAP combined do a good job covering the globe for American Funds.