Long term approach to investing

LONG-TERM APPROACH

Because time matters more than timing.

Two women happy to receive a degree on their convocation

At Capital Group, we follow a long-term approach because we believe it’s the best way to help investors achieve their financial goals.

Whether it’s saving for education, retirement or a house, nothing happens overnight. Our commitment to long-term investing takes many forms, and our culture and system reinforce them all.

Long term means it pays to put in the time.

Our investment professionals’ compensation is tied to short, medium and long-term results, with a greater focus on the long term.

Why is that important? Because longer measurement periods mean more time for well-researched, high-conviction investments to perform well. Because they have time to build results, our investment professionals seek to avoid taking outsized risks in pursuit of short-term results.

Long term means experience.

All of our portfolio managers have more than 10 years of industry experience.

Nine out of 10 have at least 20 years in the industry, and more than a third have over three decades of experience.

Data as at 31 December 2020. Source: Capital Group

Many of our portfolio managers have experienced multiple market crises and have kept cool heads during bumpy rides.

Data as at 31 December 2020. Source: Capital Group

Long term means there is power in being private.

At public companies, quarterly profits often drive short-term thinking.

Capital Group is a privately held firm. So rather than being distracted by what’s good for "Wall Street," we can focus on what’s best for long-term investors. We believe that being privately held for more than 85 years has helped maintain our investor-focused culture.

Long term means greater opportunity for successful outcomes.

Our long-term thinking has gotten results for our investors for almost nine decades.

For over 85 years, we have managed multiple investment strategies through various investment vehicles. Many of these strategies are now available to investors in Europe, Asia and Australia.