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August 2017

How can investors capture big trends reshaping the world?

Meet the Managers

FOR PROESSIONAL

INVESTORS ONLY

Capital Group is represented in Australia by its member Capital Group Investment Management Limited (ACN 164 174 501)

Not for use with the public.

© 2015 The Capital Group Companies, Inc.

Managing investors’ assets since 1931

1

1. As at 30 June 2017. Source: Capital Group.2. As at 31 December 2016. Source: Capital Group.

US$1.5tn

Assets under

management1

86Years of

investing

7,500+

Employees

worldwide2

Capital Group is focused on delivering superior, consistent results for long-term

investors using high-conviction portfolios, rigorous research and individual

accountability

2

Brace for change

Big trends reshaping the world

3

Changing global trade

patterns

Idea-driven

companies

The new emerging

market consumer


Is globalisation dead?

4

Flows of goods, services and finance, 1980–2014

3 3 3 3 3 3 3 4 4 5 5 5 6 6 68 9 10 9 10

1210 11

13

17

2124

30

22

18

2629 28 28

30

2624 23

21

22

24

22

23

24

2427

2932

2932

37

32

3235

41 46

49

53

37

31

41 41

38 37 39

0

10

20

30

40

50

60

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

US$ trillion, nominal % of global GDP

Sources: UNCTAD; IMF Balance of Payments; World Bank; McKinsey Global Institute analysis


Global integration goes digital

5

Sources: TeleGeography; McKinsey Global Institute analysis

Total used cross-border bandwidth, in thousands of gigabits per second

Global flow of data and communication

3.1 4.4 7.2 12.5 20.3 30.9 46.8 67.5 97.9 140.8

1.6 2.33.9

6.39.8

15.3

22.7

33.3

48.8

70.5

0

50

100

150

200

250

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Intraregional Interregional


Social technologies adopted at record speed

6

Online platforms – virtual countries?

Platform active users or country populations (million)

US

322

WeChat

846

China

1,376

Facebook

1,790

This information has been provided solely for informational purposes and is not an offer, or solicitation of an offer, or a recommendation to buy or sell any security or instrument listed herein.WeChat and Facebook monthly active users as at September 2016. Sources: World Population Prospects: The 2015 Revision, United Nations; Tencent, Facebook


Africa leapfrogs landlines, and takes a shortcut to the bank

Technology is a game changer for business

7

This information has been provided solely for informational purposes and is not an offer, or solicitation of an offer, or a recommendation to buy or sell any security or instrument listed herein.Sources: 2014 State of the Industry: Mobile Financial Services for the Unbanked, March 2015, Groupe Speciale Mobile Association (GSMA); “Banks Vie for a Piece of Africa’s Mobile Banking Market,” August 15, 2014, The Wall Street Journal; Safaricom Limited FY15 Presentation. The GSMA Mobile Money report is available at http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2015/03/SOTIR_2014. The data for mobile financial accounts per 100,000 adults are as of June 2013. The total M-Pesa transactional value of US$45 billion is for the fiscal year ended March 31, 2015.


Young people are earning more and influencing purchasing patterns

Emerging market consumer: Same, but different

Source: Euromonitor International 2016

Gross income of 25- to 29-year old vs. national average (2015)

19.7

16.5

16.3

14.8

12.8

12.3

9.8

9.2

8.8

0.1

5.6

-3.0

-3.6

-11.5

(% Lower) (% Higher)

The Philippines

China

Malaysia

Indonesia

India

Mexico

Thailand

Brazil

Argentina

Russia

Germany

South Korea

United Kingdom

US

10

© 2015 The Capital Group Companies, Inc. 9

Future-proof your portfolio by seeking global champions


Creative, experienced and networked

Rise and dominance of global companies

10

The rise of multinationals:

• Play a vital role in the global economy

• Account for 80% of trade, 75% of private sector

research and development and 40% of productivity

growth globally

• Possess the power of deep global distribution

networks

• Innovative management, with experience and

maturity to operate in multiple markets

• Diverse sources of revenue, by identifying

opportunities in the fastest growing markets

• Resilience, through solid balance sheets that can

better withstand market downturns

Sources: Dobbs, Richards; Koller, Tim; Ramaswamy, Sree; Woetsel, Jonathan; Manyika, James; Krishnan, Rohit; Andreula, Nicolo. “Playing To Win: The New Global Competition for Corporate Profits.” McKinsey & Company. September 2015


Top 10 largest companies in the MSCI ACWI by market cap

Idea companies emerge as top dogs

11

Source: RIMES. *Value of A and C shares, both of which are held in MSCI ACWIThis information has been provided solely for informational purposes and is not an offer, or solicitation of an offer, or a recommendation to buy or sell any security or instrument listed herein.

1996 2006 2016

General Electric Exxon Mobil Apple

Coca-Cola General Electric Alphabet*

Exxon Mobil Citigroup Microsoft

Toyota Microsoft Exxon Mobil

Intel Bank of America Johnson & Johnson

Microsoft BP General Electric

Merck HSBC Holdings Facebook

Royal Dutch Petroleum Procter & Gamble Amazon

Philip Morris Johnson & Johnson Wells Fargo

Bank Tokyo-Mitsubishi Toyota AT&T

Not in the Top 10 in 1996 or 2006


Amazon Web Services: One of the fastest-growing technology businesses

Is Amazon just an e-commerce giant?

12

This information has been provided solely for informational purposes and is not an offer, or solicitation of an offer, or a recommendation to buy or sell any security or instrument listed herein. Data as at February 2017. Sources: Deutsche Bank estimates, public company filings

0

2

4

6

8

10

12

0 5 10 15 20

Years

Revenue (US$ billion)

Oracle2000

Alphabet2006

Facebook2014

Apple1995

Microsoft1997

Amazon Web Services

2016


The power of distribution networks

13

• An effective barrier against competition

• Hallmark of longest surviving global companies

(Coca-Cola)

• Control of distribution networks

− Pharmaceutical companies and brewing giants

• Strengthening grip through mergers

• Drug companies focused on certain

diseases/doctor networks

This information has been provided solely for informational purposes and is not an offer, or solicitation of an offer, or a recommendation to buy or sell any security or instrument listed herein.


Global companies adapt to greater EM influence

14

• Multinationals setting up Asian R&D centres to be closer to consumers (Unilever)

• Products created in EMs can be successful in DMs (Sun Pharmaceuticals)

• Developing both global and local brands (Nestlé)

United States

Europe

China

India

This information has been provided solely for informational purposes and is not an offer, or solicitation of an offer, or a recommendation to buy or sell any security or instrument listed herein. Data as at February 2017. Sources: Deutsche Bank estimates, public company filings


Innovation: Blurring boundaries

15

All pictures are intellectual property of their respective owners. Reference to any third party product or service does not constitute or imply endorsement or recommendation thereof by The Capital Group. This information has been provided solely for informational purposes and is not an offer, or solicitation of an offer, or a recommendation to buy or sell any security or instrument listed herein.

China

India

General Electric

Lullaby Warmer for newborn babies

Unilever

Bouillon jelly for stock


Emerging market companies: Next big global players

16

1. Africa, Eastern Europe and Central Asia, Latin America, Middle East, South Asia, and Southeast Asia.2. China, Hong Kong, Macau, and Taiwan.Source: McKinsey Global Institute Company Scope database of companies with revenues ≥US$1 billion a year, October 2013.

The Fortune Global 500 by location, number of companies

2 1 12 54120

21 22 12

31

109

477 477 476415

271

0

100

200

300

400

500

1980 1990 2000 2010 2025 projected

Developed

regions

Emerging markets1,

excluding China

Greater China2

5% 5% 5% 17% 46%Emerging markets1

total share


Introducing Capital GroupNew Perspective Fund (AU)


Objective: Long-term growth of capital

18

Experienced and collaborative global team

High-conviction portfolio driven

by bottom-up research

Investment professionals who

have navigated a range of market

cycles

Powerful opportunity set

Established and

early-stage multinational

companies well positioned to

benefit from global secular

trends

High-conviction, repeatable approach

Over 40 years of pursuing global growth


Buy global champions of today and tomorrow

19

Global trends are best accessed by investing in multinationals which can offer key advantages

A powerful opportunity set

Growth

Early-stage

multinationals

• Market-leading

companies in home

region

• Overseas trade

rapidly expanding

• Potential to be a

leading

multinational

Resilience

Established

multinationals

• Well-established

global companies

• Able to evolve to

achieve growth

• Benefits from

global trade

ExamplesIn the portfolio

British American TobaccoJPMorgan ChaseNestle

ExamplesIn the portfolio

Amazon.comCMEASML


More than a global multinational strategy

Analysis from 31 May 2000 to 31 March 2017

0

50

100

150

200

250

300

350

May 00 May 02 May 04 May 06 May 08 May 10 May 12 May 14 May 16

Total returns indexed to 100 in US$

New Perspective¹

7.1%

FTSE Multinationals²

4.7%

MSCI ACWI³

3.6%

Annualised returns

Past results are not a guarantee of future results. Analysis from 31 May 2000 (earliest available data) to 31 March 2017.Invested capital is at risk; the strategy aims to achieve a positive return over the long term although there is no guarantee this will be achieved over that or any time period.1.The results shown are for the Capital Group New Perspective Composite. The composite is asset-weighted based on initial weights and monthly returns. Gross of management fees. Source: Capital Group2. FTSE Multinationals Index (Total Return). This index comprises companies that derive more than 30% of their revenue from outside their domestic region. Source: FTSE 3. MSCI ACWI (with net dividends reinvested) from 30 September 2011; previously MSCI World (with net dividends reinvested). Source: MSCI


A strategy for different seasons

21

Peaks and troughsMSCI ACWI1 Capital Group New Perspective Composite relative returns (p.a.)2 +/- %

Past results are not a guarantee of future results. Data as at 30 June 2017. As Capital Group New Perspective Fund (AU) launched on 20 November 2015, a meaningful track record has yet to be established, so the investment results shown here are for the Capital Group New Perspective Composite (defined as a single group of discretionary portfolios that collectively represent a particular investment strategy or objective). This is intended to illustrate our experience and capability in managing this strategy over the long term. Our Capital Group New Perspective Fund (AU) has been a member of this composite since beginning of December 2015.1. MSCI ACWI (with net dividends reinvested) in US$ from 30 September 2011; previously MSCI World (with net dividends reinvested). Source: MSCI 2. Relative returns calculated geometrically for the Capital Group New Perspective Composite, in US$ terms and before fees and expenses, compared with MSCI ACWI (net dividends reinvested) from 30 September 2011; previously MSCI World (with net dividends reinvested). Sources: Capital Group, MSCI

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1973 1978 1983 1988 1993 1998 2003 2008 2013Mar

+3.2%

+6.2%

+8.7%

+2.3%

+4.8%

Downmarket

Up Down UpUp market

Mar2000

Feb2009

Sep2002

Oct 2007

Jun 2017

The strategy has a track record of protecting on the downside in rolling three-year down markets

Rolling monthly three-year returns from inception to 30 June 2017

Market return1

Number

of periods

How often the composite

outpacedthe market2

>0% ‘Up market’ 416 87%

<0% ‘Down market’ 80 100%


The value of a long-term perspective

22

Capital Group New Perspective strategy

The value of A$10,000 invested at launch

Past results are not a guarantee of future results. Data as at 30 June 2017. 1. Results prior to the launch of Capital Group New Perspective Fund (AU) on 20 November 2015 are derived from the American Funds New Perspective Fund after fees in A$ from 31 March 1973. The strategy is advised by the same portfolio management team managing to the same investment objectives. The after fees returns are based on the total management cost of 0.95% p.a. that is currently applicable to the fund. Source: Capital Group.2. MSCI ACWI (net dividends reinvested) from 30 September 2011; previously MSCI World (net dividends reinvested). Source: MSCIThis information supplements or enhances required or recommended disclosure and presentation provisions of the GIPS® standards, which if not included herein, are available upon request. GIPS is a trademark owned by CFA Institute.

New Perspective1

A$2,717,818

MSCI ACWI2

A$663,371

The value of A$10,000 invested at launch

Annualised growth in % terms since launch

A$2,717,818

A$663,371

Capital GroupNew Perspective

Strategy¹

MSCI ACWI ex Australia²

4 x more wealth in A$ terms

13.5

9.9

Capital GroupNew Perspective Strategy¹

MSCI ACWI ex Australia²

3.6% higher than the market return

May-17

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Mar-73 Mar-78 Mar-83 Mar-88 Mar-93 Mar-98 Mar-03 Mar-08 Mar-13


A flexible approach to global equity investing

23

Capital Group New Perspective Fund (AU)

A bottom-up

approach to

capturing long-

term themes

Buys global

companies of

today and

tomorrow

A quality strategy

that delivers

superior results1

Provides

resilience in

failing markets

A powerful global equity strategy with a ‘new geography’ approach that has delivered consistently attractive

results for over 40 years

Past results are not a guarantee of future results. Data as at 31 May 2017. As Capital Group New Perspective Fund (AU) launched on 20 November 2015, a meaningful track record has yet to be established, so the investment results shown here are for the Capital Group New Perspective Composite (defined as a single group of discretionary portfolios that collectively represent a particular investment strategy or objective). This is intended to illustrate our experience and capability in managing this strategy over the long term. Our Capital Group New Perspective Fund (AU) has been a member of this composite since beginning of December 2015.1. Since its launch, the Capital Group New Perspective strategy has returned 13.6 p.a. versus 10.0 p.a. for MSCI ACWI. Results for the Capital Group New Perspective Composite are asset-weighted and based on initial weights and monthly returns in A$ terms (inception: 31 March 1973). The after fees returns are based on the total management cost of 0.95% p.a. that is currently applicable to the fund. Source: Capital Group, MSCI2. The New Perspective strategy has protected on the downside 100% of the time on a rolling three-year basis since inception. Relative returns calculated geometrically for the Capital Group New Perspective Composite, in A$ terms. The after fees returns are based on the total management cost of 0.95% p.a. that is currently applicable to the fund. Source: Capital Group, MSCIThis information supplements or enhances required or recommended disclosure and presentation provisions of the GIPS® standards, which if not included herein, are available upon request. GIPS is a trademark owned by CFA Institute.


Key takeaways for investors

• See global trade patterns anew

• Uncover idea-driven companies

• Get ready for the new EM consumer

• Go global with your asset allocation

• Seek the multinationals of today and tomorrow

• Adopt a New Perspective on global investing

© 2017 Morningstar. All rights reserved. Morningstar Rating™ as at 31 March 2017. Morningstar Analyst Rating™ as at 17 January 2017. Morningstar Global Large-Cap Growth Equity category.

Capital Group New Perspective Fund (AU)

An active global equity strategy that stood the test of time

© 2017 Morningstar. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to: http://corporate.morningstar.com/us/documents/MethodologyDocuments/AnalystRatingforFundsMethodology.pdf. For disclosure and detailed information about this fund, please refer to full Morningstar Global Fund Report at https://www.thecapitalgroup.com/content/dam/cgc/tenants/apac/documents/award/mgfr-cgnpf.pdf.


Q&A

FOR PROFESSIONAL INVESTORS USE ONLY - NOT FOR PUBLIC DISTRIBUTION

This communication is intended for advisors and professional investors only, and should not be relied upon by retail investors. Past results are not predictive of future results. This information is neither an offer nor a solicitation to buy or sell any securities or to provide any investment service.

The statements included here are the opinions and beliefs of the individuals identified and do not necessarily reflect the view of Capital Group or its affiliates. While Capital Group uses reasonable efforts to obtain information from sources which it believes to be reliable, Capital Group makes no representation or warranty as to the accuracy, reliability or completeness of the information.

This communication is of a general nature, it is not intended to be comprehensive or to provide investment, tax or other advice. It has been prepared for multiple distributions and does not take account of the specific investment objectives of individual recipients and it may not be appropriate in all circumstances.

This communication has been prepared by Capital International, Inc., a member of Capital Group, a company incorporated in California, United States of America. The liability of members is limited.

All Capital Group trademarks are owned by The Capital Group Companies, Inc. or an affiliated company in the US, Australia and other countries.

All other company and product names mentioned are the trademarks or registered trademarks of their respective companies.

© 2017 Capital Group. All rights reserved.

Disclaimer

FOR PROFESSIONAL INVESTORS AND INFORMATION PURPOSES ONLY - NOT FOR PUBLIC DISTRIBUTION

This communication is strictly for the confidential use of the recipient, solely for the purpose for which it is provided, and may not be disclosed or circulated to, or relied upon by third parties. Past results are not a guarantee of future results.

This information is neither an offer nor a solicitation to buy or sell any securities or to provide any investment service. Statements attributed to an individual represent the opinions of that individual as of the date published and may not necessarily reflect the view of Capital Group or its affiliates. While Capital Group uses reasonable efforts to obtain information from sources which it believes to be reliable, Capital Group makes no representation or warranty as to the accuracy, reliability or completeness of the information. The information provided in this communication is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs.

This communication has been prepared by Capital International, Inc., a member of Capital Group, a company incorporated in California, United States of America. The liability of members is limited. In Australia, this communication and Capital Group New Perspective Fund (AU) (ARSN: 608 698 746) is issued by Capital Group Investment Management Limited (ACN 164 174 501 AFSL No. 443 118),a member of Capital Group, located at Level 18, 56 Pitt Street, Sydney NSW 2000 Australia. The said fund is offered only by Product Disclosure Statement (PDS), please read the PDS which is available upon request or at www.thecapitalgroup.com.au in its entirety before making an investment decision.

All Capital Group trademarks are owned by The Capital Group Companies, Inc. or an affiliated company in the US, Australia and other countries. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies. © 2017 Capital Group. All rights reserved.