THE CAPITAL SYSTEM

Our investment approach is distinctive

A BETTER APPROACH

The Capital System™ combines independent, high-conviction decision-making with the diversity that comes from multiple perspectives. It has delivered long-term results that help clients pursue their goals.

HOW IT WORKS

Our portfolios house diverse perspectives

Multi-manager structure

 

We divide portfolios into segments, each run by an individual manager. The managers represent a diverse set of backgrounds, styles and approaches. In many cases, each is personally invested in the portfolios they manage.

Our portfolios feature high-conviction investments

Promoting independent thinking

 

While managers collaborate and share insights, each invests independently according to their strongest convictions. The resulting portfolios are a diverse collection of investment ideas, not just one manager’s perspective. This approach creates the potential for portfolios to fare well in a variety of market conditions.

Our investments are grounded in fundamental research

Research-driven investing

 

Our investment group had 20,000+ company engagements in 2023, including those where ESG topics were discussed. Keeping in close contact with management teams and spending time on location, when possible, help drive deep operational understanding and inform all our investment decisions.

Our investment analysts do more than make recommendations

The research portfolio

 

At most firms, analysts only recommend investments, but at Capital Group, they typically have the opportunity to actually invest in their highest conviction ideas. Most funds have research portfolios managed by analysts.

Our system provides management continuity and a consistent approach

A time-tested system

 

Our multiple-manager system supports our commitment to investors with long-term goals. It has allowed us to navigate near-term noise and periods of economic and market uncertainty in pursuit of key goals.

Designed to help investors pursue long-term investment success

Aligned with investor goals

 

We strongly believe long-term investing aligns with client goals, and our culture and compensation structure reinforce that focus. We typically hold investments significantly longer than our industry peers.*

 

*On average, the equity-focused American Funds® hold their investments for 3.3 years, whereas their peers hold their investments for 1.9 years, based on the equal-weighted blended averages across each of the 20 equity-focused American Funds' respective Morningstar active categories as of December 31, 2023.

THE POWER OF DIVERSITY

Bringing it all together

The Capital System builds portfolios that house multiple, disparate views. This diversity creates the potential for portfolios to fare well in a variety of market conditions.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
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This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.