A BETTER APPROACH
The Capital SystemTM 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 environmental, social and governance (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 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.
At Capital Group, ESG† is embedded in our investment process
Material ESG issues are woven into The Capital System, as well as our fundamental research, due diligence and engagement.
†Analysis of material ESG issues, alongside other considerations, helps us identify investment risks and opportunities. They can be, but are not necessarily, determinative to an investment decision.
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.
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.
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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.