DISTINCTIVE INVESTING APPROACH

We believe in a distinctive way of managing money

THE CAPITAL SYSTEMTM

Our system prioritizes superior and repeatable fund results

Capital Group founder Jonathan Bell Lovelace in 1968.
Jonathan Bell Lovelace 1968

Early in Capital Group history, our leaders realized that their funds would outlast the professionals who managed them

They believed they had a responsibility to provide stability and management continuity to their investors, so they asked themselves a key question: If a portfolio manager left the firm, how could they keep funds going strong?

They pioneered a plan. By dividing funds into sections and giving each of the existing managers a portion to administer, no fund would be too dependent on a single person. 

This distinctive way of managing money became The Capital System. By incorporating the highest conviction investment ideas of each manager in a fund, we aim to both increase the diversity of those ideas and reduce the volatility of a fund, which can give investors a smoother ride in bumpy markets.

The best of both worlds

Capital Research and Management meeting in 1961, with Jonathan Bell Lovelace, Chuck Schimpff, Colman Morton, Jim Fullerton and Mary Bauer.
Capital Group Meeting 1961: Jonathan Bell Lovelace,
Chuck Schimpff, Coleman Morton, Jim Fullerton, Mary Bauer

The Capital System can give financial professionals and investors the best of both worlds: the upside of high-conviction ideas and the power of collaboration

At Capital Group, home of American Funds, we assemble teams of managers who have different investing styles and complementary strengths to help foster a diversified investing approach.

The benefits of our multimanager approach can be boiled down to simple math: If a typical mutual fund has a star manager with 120 of her best ideas for investments, that’s a lot of ideas for one person to track. But imagine if the fund were divided among four managers, including each of their 30 highest conviction ideas — ideas they've explored inside out — that’s The Capital System.

Graphic comparing the multi-manager approach of The Capital System with industry standard single-manager system.

A history lesson

For decades, many of our funds have delivered strong results, helping investors stay on the path to achieving their financial goals

Take a look at the results of a $10,000 hypothetical investment in the S&P 500, as well as each of the five U.S. equity-focused American Funds available when the first S&P 500 index-tracking fund was founded in 1976.

Click for more information on the results of our equity, fixed income and multi-asset funds.

 Read important investment disclosures

Class F-2 shares, net of all expenses

Chart shows the results of a hypothetical investment in each of the five U.S. equity-focused American Funds for class F-2 shares, net of all expenses, as well as the S and P 500 Index from August 31, 1976 to as of December 31, 2023. The ending balance for each fund would be as follows: The Growth Fund of America, $5,174,328; AMCAP Fund, $3,470,444; Washington Mutual Investors Fund, $2,221,437; The Investment Company of America, $2,122,912; and American Mutual Fund, $1,788,000. The ending balance for the S and P 500 Index would be $1,704,343.

Source: Capital Group as of December 31, 2023. Includes all five of the U.S. equity-focused American Funds available for investment when the first S&P 500 index-tracking fund was launched on 8/31/76. The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Aim for a smoother ride

A group of managers with complementary investing styles on a single fund seeks to diversify risk and deliver long-term results to help clients pursue their goals

Losing less when the market dips means investors stand to gain more when it climbs. And a steadier journey can help investors stay the course for the long term.

Built to last

The Capital System has stood the test of time

An innovative idea then and now, our distinctive multimanager system has become a defining feature of our success. Distinct in the market and diverse in its strategy, The Capital System has helped many of our investment vehicles pursue superior outcomes. 

Capital Group has managed investment strategies through funds and other vehicles over the years, the results of which have varied.

See how

Click for more information on the results of the American Funds equity, fixed income and multi-asset funds.

Our beliefs

Your goals power ours

We have four core beliefs central to helping you succeed.

Learn more

More beliefs

MORE ABOUT US

Build a more personal portfolio.

Your clients need portfolios as individual as they are. Our portfolio construction approach lets you customize a mix that works with the individual goals of your clients.

LEARN MORE

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Investing for short periods makes losses more likely. Prices and returns will vary, so investors may lose money. View mutual fund expense ratios and returns.
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.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries.
There have been periods when the results lagged the index(es) and/or average(s). The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
Each S&P Index ("Index") shown is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2024 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.
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.
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.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses.
Results for certain funds with an inception date after the share class inception also include hypothetical returns because those funds' shares sold after the funds' date of first offering. View dates of first sale and specific expense adjustment information.
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Capital Client Group, Inc.
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.
© 2024 Morningstar, Inc. All Rights Reserved. Some of the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, its content providers nor Capital Group are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by Capital Group.