Collaborative research
Collaboration across portfolio managers, analysts, economists and quantitative research teams generates deeper insights.
Our distinctive investment approach
For 93 years, Capital Group has helped millions of clients pursue their financial goals. Our investment approach, The Capital System, is designed to generate the superior, long-term results clients seek.
How it works
The Capital System is the engine that powers our pursuit of superior long-term investment results across asset classes.
With The Capital System, a portfolio is powered by a team of managers, each bringing their unique insights and strongest investment ideas. They share thoughts with one another but ultimately make their own choices. This teamwork creates a rich mix of top ideas, rather than just relying on one standout manager.
Because they reflect diverse viewpoints, our portfolios have the potential to deliver more consistent results across market cycles.
Why it works
The Capital System is rooted in three core pillars, which are deeply ingrained in our investment culture.
Diverse perspectives
Leveraging the best ideas of multiple investment professionals helps us pursue more consistent results across market cycles with less volatility.
Long-term view
Managers are discouraged from engaging in short-term thinking. Investing with a long-term view helps align our goals with those of investors
The power of independence
Being privately held and employee-owned has allowed us to focus on the importance of consistent, long-term investment results and avoid the short-term quarterly earnings pressure many public firms face. This is reflected in the way our investment professionals are compensated, with the weighting favoring longer term results.*
*Compensation paid to our investment professionals is heavily influenced by results over one- , three- , five- and eight-year periods,
with increasing weight placed on each succeeding measurement period to encourage a long-term investment approach.
A time-tested system for the long term
Our approach to investing has allowed us to deliver strong investment results for clients over time.
Percentage of all U.S. funds whose average rolling results outpaced more than half their respective Morningstar peers
For the 40 years ended September 30, 2024
Return:
1-year rolling periods: 66%
5-year rolling periods: 73%
10-year rolling periods: 74%
Sharpe ratio:
1-year rolling periods: 83%
5-year rolling periods: 83%
10-year rolling periods: 68%
Source: Capital Group, based on mutual fund and ETF data from Morningstar. For each fund, we calculated the average rolling Sharpe ratio and return over the 40-year period (or the fund's lifetime, if it lacks a 40-year history). That average rolling return and Sharpe ratio were compared against the equivalent averages for each fund's respective Morningstar peers.
Methodology: Data are based on the following American Funds share classes: Class F-2, Class M, Class 529-A, Class 1, Class P-2 and Class 4. One share class was used per fund. The analysis uses Morningstar hypothetical methodology to calculate hypothetical fund results for periods before a share class's inception. For those periods, Morningstar adjusts the results of the fund's oldest share class to reflect the fee of the share class in question.
Past results are not predictive of results in future periods. There have been periods when the funds have lagged their indexes.
U.S. Mutual funds are not available outside of the U.S.
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.
Investments and services
We offer a wide variety of equity, multi-asset and fixed income investments and services all backed by extensive global research and designed around investor goals.
Global Head of ESG Jessica Ground explains how the analysis of ESG issues enhances our investment research.
Our approach to ESG
We believe that considering material environmental, social and governance (ESG) issues in our research and analysis helps us better understand long-term risks and opportunities for our clients. By "material," we mean those ESG considerations that are likely to affect the value of an investment over time.
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This content is intended to highlight issues and be of a general nature. It should not be considered advice, an endorsement or a recommendation. Products mentioned are not an offer of the product and may not be available for sale or purchase in all countries. All investments have risk, and you may lose money. Past results are not a guarantee of future results.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates.
This content is published by Capital Client Group, Inc., and copyrighted to Capital Group and affiliates, 2024, all rights reserved.
For more information, including our detailed disclosures, visit www.capitalgroup.com/global-disclosures.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates.
This content is published by Capital Client Group, Inc., and copyrighted to Capital Group and affiliates, 2024, all rights reserved.
For more information, including our detailed disclosures, visit www.capitalgroup.com/global-disclosures.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.