What sector should investors back in 2024?
Steve Smith, investment director at Capital Group, tells us which sector the team behind the Capital Group New Perspective fund is backing for 2024 – including the enablers to the energy transition.
Watch the full length interview with Steve here
View the transcript
So, I’m not going to dodge the question, but New Perspective is a truly diversified global equity strategy. We’re not, we are not heavily invested in a single sector. We’re not backing a single sector. So there are a various multi-generational, if you like, growth opportunities that the investment team are excited about. I’ll explain very briefly three of them and how they relate to sector positions.
One is healthcare innovation. We truly think we’ve entered a golden era of healthcare innovation driven by a substantial increase in the number of drug platforms that’s really accelerating the pace of drug discovery and innovation. We are really trying to focus on companies that are going to be successful and have drugs in large expanding, but currently underserved medical end markets like obesity, dementia, diabetes, and cancer.
Another area that we are investing in is, is in the energy transition. So we think there’s a rich, diverse set of investment opportunities right now New Perspective’s trying to invest in the enablers to the energy transition. So think about the makers of stuff, the makers of physical products, and to that extent we think there could be a renaissance in the industrial sector for many companies that will help enable the energy transition. And then finally, we continue to believe in the power of digital innovation and disruption. So several technology and communication services companies feature prominently, in the New Perspective fund.
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