Key Takeaways
- • Capital Group removed Capital Research Global Investors (CRGI) from American Funds The New Economy Fund effective Jan. 1, 2026, taking two managers and one analyst team that oversaw roughly 20% of assets off the strategy, per Morningstar.
- • The fund, with approximately $46.2 billion in assets and a 0.73% net expense ratio, is led by Mathews Cherian alongside Richmond Wolf, Paul Benjamin, Lara Pellini, Tomoko Fortune and Peter Gusev, all with more than 20 years of industry experience.
- • As of March 2026, technology accounted for 38% of assets and semiconductors 25%, with roughly one-third of assets in the top 10 holdings across about 180 names.
- • The fund returned 56% over the trailing year through May 2026, and its R6 shares' 16.8% annualized 10-year return beat the MSCI ACWI Growth Index by 7.6 percentage points, per Morningstar.
- • Morningstar assigned a Gold rating and rated the process Above Average and the people Above Average, while the parent Capital Group earned a High Parent rating.
Summary
American Funds The New Economy Fund (ticker ANEFX, Class A) is a global large-stock growth strategy with roughly $46.2 billion in fund assets, a 0.720% adjusted expense ratio and a $250 minimum initial investment, according to Morningstar's fund profile, which notes a Medalist rating as of June 2, 2026. Morningstar's research team assigned the strategy a Gold rating in its June 2026 managed investment report, citing a seasoned management team, deep analyst support and an innovation-focused process. The strategy is also rated Above Average on process and Above Average on people, and parent Capital Group received a High Parent rating.
The fund underwent personnel changes at the start of 2026. Following Capital Group's periodic review of its equity subsidiaries, Capital Research Global Investors was removed from the strategy on Jan. 1, 2026. Morningstar noted that two managers, Harold La and Caroline Jones, and one analyst team departed, affecting roughly 20% of assets. Peter Gusev, who has managed a global small-cap strategy at the firm for more than five years, was added. Mathews Cherian, who took over leadership in 2022, continues to lead the strategy alongside Richmond Wolf, Paul Benjamin, Lara Pellini, Tomoko Fortune and Gusev, supported by more than 50 analysts.
Portfolio positioning emphasizes innovation-driven themes, including digital disruptors, energy transition and healthcare advances. As of March 2026, technology made up 38% of assets, slightly underweight the MSCI ACWI Growth Index but roughly 11 percentage points overweight the MSCI ACWI, with semiconductors at 25% of assets, roughly double the stake of a few years earlier. Seven of the top 10 holdings were technology firms, including Broadcom, SK Hynix, Microsoft and Micron Technology. Healthcare was 11% of assets, with Eli Lilly and Vertex Pharmaceuticals among top holdings. Non-US exposure was 29% as of March 2026, below the prospectus benchmark's 36% and the category norm of 39%, with emerging markets (including South Korea and Taiwan) at roughly 9% to 15% of assets.
Performance has been strong over longer horizons and recently. The R6 shares' 16.8% annualized return over the 10 years through May 2026 beat the MSCI ACWI prospectus benchmark by 6.9 percentage points and the MSCI ACWI Growth Index by 7.6 points, and landed in the top decile of the global large-stock growth category over trailing 15- and 20-year periods. Over the trailing year through May 2026, the fund gained 56%, aided by stakes in SK Hynix, Micron Technology, Broadcom and Taiwan Semiconductor Manufacturing. Morningstar also cautioned that the concentrated tilts add volatility; in 2021, technology and healthcare picks weighed on results and the strategy landed in the bottom half of its category.
Morningstar also placed the January changes in the context of Capital Group's broader moves, noting the firm launched two semiliquid funds with KKR in April 2025, has partnered with Vanguard, BlackRock and Schwab on active/passive models, and has launched more than 25 active ETFs globally since early 2022.
The fund underwent personnel changes at the start of 2026. Following Capital Group's periodic review of its equity subsidiaries, Capital Research Global Investors was removed from the strategy on Jan. 1, 2026. Morningstar noted that two managers, Harold La and Caroline Jones, and one analyst team departed, affecting roughly 20% of assets. Peter Gusev, who has managed a global small-cap strategy at the firm for more than five years, was added. Mathews Cherian, who took over leadership in 2022, continues to lead the strategy alongside Richmond Wolf, Paul Benjamin, Lara Pellini, Tomoko Fortune and Gusev, supported by more than 50 analysts.
Portfolio positioning emphasizes innovation-driven themes, including digital disruptors, energy transition and healthcare advances. As of March 2026, technology made up 38% of assets, slightly underweight the MSCI ACWI Growth Index but roughly 11 percentage points overweight the MSCI ACWI, with semiconductors at 25% of assets, roughly double the stake of a few years earlier. Seven of the top 10 holdings were technology firms, including Broadcom, SK Hynix, Microsoft and Micron Technology. Healthcare was 11% of assets, with Eli Lilly and Vertex Pharmaceuticals among top holdings. Non-US exposure was 29% as of March 2026, below the prospectus benchmark's 36% and the category norm of 39%, with emerging markets (including South Korea and Taiwan) at roughly 9% to 15% of assets.
Performance has been strong over longer horizons and recently. The R6 shares' 16.8% annualized return over the 10 years through May 2026 beat the MSCI ACWI prospectus benchmark by 6.9 percentage points and the MSCI ACWI Growth Index by 7.6 points, and landed in the top decile of the global large-stock growth category over trailing 15- and 20-year periods. Over the trailing year through May 2026, the fund gained 56%, aided by stakes in SK Hynix, Micron Technology, Broadcom and Taiwan Semiconductor Manufacturing. Morningstar also cautioned that the concentrated tilts add volatility; in 2021, technology and healthcare picks weighed on results and the strategy landed in the bottom half of its category.
Morningstar also placed the January changes in the context of Capital Group's broader moves, noting the firm launched two semiliquid funds with KKR in April 2025, has partnered with Vanguard, BlackRock and Schwab on active/passive models, and has launched more than 25 active ETFs globally since early 2022.
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