INVESTMENT APPROACH

The Capital System

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.

The Capital System is rooted in three core pillars

Each pillar is deeply ingrained in our investment culture.

Collaborative research

Collaboration across portfolio managers, analysts, economists and quantitative research teams generates deeper insights.

 

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 favouring 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.

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.

Connect with us

Contact a local team member in your region for more information.

Learn more about Capital Group