Fund Evaluator:
American Funds New World R-4 (RNWEX)
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Best Performing in Diversified Emerging Mkts Over the Last Year
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| 51.1% | WCM Focused Emerging Mkts Ex Chn Inv (WCFEX) |
| 47.2% | Matthews Emerging Markets Sust Fut Inv (MASGX) |
| 46.5% | Lazard Emerging Markets Equity Instl (LZEMX) |
| 46.5% | LSV Emerging Markets Equity Inv (LVAZX) |
Fund Details
American Funds New World R-4 Overview
American Funds New World R-4 (RNWEX) is an actively managed International Equity Diversified Emerging Mkts fund. Capital Group launched the fund in 2002.
The investment seeks long-term capital appreciation. The fund invests primarily in common stocks of companies with significant exposure to developing countries. The securities markets of these countries may be referred to as emerging markets or frontier markets. Under normal market conditions, the fund invests at least 35% of its assets in equity and debt securities of issuers domiciled in qualified developing countries.
About American Funds New World R-4 (RNWEX)
There are 12 members of the management team with an average tenure of 12.56 years: Akira Shiraishi (2017), Lisa Thompson (2019), Christopher Thomsen (2009), Bradford Freer (2017), Matt Hochstetler (2024), Winnie Kwan (2009), Kirstie Spence (2019), Tomonori Tani (2013), Dawid Justus (2020), Piyada Phanaphat (2020), Robert Lovelace (1999), Carl Kawaja (1999). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: MSCI EM NR USD index with a weighting of 100% and MSCI ACWI NR USD index with a weighting of 100%. American Funds New World R-4 has 604 securities in its portfolio. The top 10 holdings constitute 29.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
American Funds New World R-4 is part of the Equity global asset class and is within the International Equity fund group. American Funds New World R-4 has 81.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 14.8%. There is 79.8% allocated to foreign stock, and 0.1% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 2.1% (0.0% domestic bond, 2.1% foreign bond and 0.0% convertible bond). American Funds New World R-4 has 2.9% of the portfolio in cash.
Assets Under Management
The fund has $933 million in total assets, which is below the $967 million average for the Diversified Emerging Mkts category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
RNWEX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The American Funds New World R-4 expense ratio is high compared to funds in the Diversified Emerging Mkts category. American Funds New World R-4 has an expense ratio of 0.92%, which is 20% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. American Funds New World R-4 has a portfolio turnover rate of 46%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 68% for the Diversified Emerging Mkts category.
Recently, in the month of July 2026, American Funds New World R-4 returned -2.2%, which earned it a grade of B, as the Diversified Emerging Mkts category had an average return of -4.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
American Funds New World R-4 has a trailing yield of 0.99%, which is below the 1.72% category average. The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
American Funds New World R-4 Grades
Year to date, the fund has returned 13.8%, 5.2 percentage points worse than the category, which translates into a grade of F. The fund has returned 27.3% over the past year (grade of F), 15.8% over the past three years (grade of D) and 6.6% per year over the past five years (grade of C) and 10.2% per year over the past 10 years (grade of A).
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RNWEX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| RNWEX Return (NAV) | -2.2% | 4.4% | 27.3% | 15.8% | 6.6% | 10.2% |
| RNWEX Grade | B | B | F | D | C | A |
| +/- Category | 2.7% | 2.0% | -8.6% | -2.1% | 0.1% | 1.5% |
| Diversified Emerging Mkts Avg | -4.9% | 2.4% | 35.9% | 17.9% | 6.5% | 8.7% |
| RNWEX Tax Cost Ratio | na | na | 1.5% | 1.1% | 1.0% | 0.7% |
RNWEX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| RNWEX Return (NAV) | 13.8% | 28.2% | 6.5% | 15.8% | -22.0% | 4.8% | 24.9% | 27.6% | -12.3% | 32.6% | 3.9% |
| RNWEX Grade | F | D | C | B | C | A | B | A | A | D | D |
| +/- Category | -5.2% | -3.3% | 0.3% | 3.7% | 0.6% | 5.0% | 3.3% | 5.7% | 4.1% | -4.0% | -4.7% |
| Diversified Emerging Mkts Avg | 19.1% | 31.4% | 6.2% | 12.1% | -22.6% | -0.2% | 21.6% | 21.9% | -16.4% | 36.6% | 8.6% |
| Risk Measures | |
| Standard Deviation: | 13.8% |
| Total Risk Index: | 1.12 - Above Average |
| Category Risk Index: | 0.82 - Low |
| Category Risk Grade: | A (12% Rank) |
| Beta: | 0.95 |
| R-Squared: | 91% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Growth |
| Bond Investment Style: | na |
| Yield: | 1.0% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $90709 Mil |
| Fund Total Assets: | $ 934 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | 46% |
Management Team
| Number of Managers: 12 | |||
| Longest Tenure: 27.1 years | |||
| Average Tenure: 12.6 years | |||
| Managers (Year): Lovelace Robert (1999), Kawaja Carl (1999), Thomsen Christopher (2009), Kwan Winnie (2009), Tani Tomonori (2013), Freer Bradford (2017), Shiraishi Akira (2017), Thompson Lisa (2019), Spence Kirstie (2019), Justus Dawid (2020), Phanaphat Piyada (2020), Hochstetler Matt (2024) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 604 |
| % in Top 10 Holdings: | 29.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 81.9% |
Portfolio Allocation |
|
| Domestic Stock: | 14.8% |
| Foreign Stock: | 79.8% |
| Preferred Stock: | 0.1% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 2.1% |
| Convertible Bond: | 0.0% |
| Other: | 0.3% |
| Cash: | 2.9% |
Purchase Information
| Fund Family: | Capital Group |
| Phone Number: | 800-421-4225 |
| Website: | www.americanfunds.com |
| Status: | Open |
| Inception Date: | October 7, 2002 |
| Min. Initial Purchase: | $ 250 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.25% |
Expenses and Fees | |
| Expense Ratio (%): | 0.92% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.16% |
| Share Class: | American Funds New World A |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
