Capital Group president and CEO Mike Gitlin has long said that the strength of Capital Group lies in our distinctive investment approach — and in the relationships we've built with clients. Each year, Mike has scores of meetings around the globe to hear the thoughts of those who invest with us and to understand how to best serve them. That same emphasis on clients has always been at the heart of Capital Group Private Client Services. In this interview, Mike shares his views on Capital Group’s client-centric approach, our long-term vision and his relationship with his own Private Wealth Advisor.

Capital Group has long prided itself on its foundational principles and investment approach. How do you think about the way we invest?

Capital Group’s mission is to improve people’s lives through successful investing. I always say, we exist for our clients. It’s not a tagline; it’s a fact. To do this, we stick to three defining principles that shape our organizational focus. 

First, our investment approach, which we call the Capital System, is unique, vital and part of the “how” in terms of seeking to generate superior investment results. Second, we have to meet our clients where they are by continuously evolving investment solutions and by providing greater vehicle choice. We’ve done this by expanding our set of investment services and vehicles around the world.

Finally, we have always sought to deliver superior long-term results that can withstand market cycles and beat both benchmarks and active peers. There’s a compelling reason why “long term” is one of our five core values. It’s how we manage our company, how we measure our investment professionals and how we ask clients to assess our results for them. Of course, none of this would be possible without our talented community of Capital associates.

That long-term focus seems especially critical given the vast changes in the financial industry. What themes are you watching and considering as we plan for the future?

Clients are consolidating their list of partners. They want fewer partners who can offer a full suite of investment solutions in addition to helping them drive their business priorities. They expect accessibility, simplicity leveraged through greater use of technology, high-quality investment content and a partner who cuts through all the noise to deliver outcomes. The investment landscape is also dramatically changing as information and analysis become more democratized. Our investment team is embracing technology, and they’re passionate about sustaining and evolving our investment culture where our associates will always make the difference.

What are we doing to meet all these demands?

We are writing our Long-Term Strategic Plan for what we envision Capital will be at our centennial, in 2031. The headline is that we want to be the partner of choice for our clients. We’ll be the investment partner of choice as we seek to generate superior long-term outcomes in the investment vehicles our clients need. We’ll also be the business partner who helps our clients manage and scale their business, positively impacting our clients and those they serve. This is all an evolution that builds on the great work generations of Capital Group associates have done before us. Our task is to write the next chapter of the Capital book and pass it on to future generations to do the same.

As Capital Group has sought to expand on that book, it’s done so organically — we don’t buy other firms and we’re not publicly owned. Why don’t we pursue mergers, and what’s the benefit to clients?

Being a private asset-management company is both a privilege and a competitive advantage. We’re stable, focused on our clients and not distracted by mergers. We’re able to build our resources organically and partner with others opportunistically without upending our culture. Our investment professionals can focus on delivering superior investment outcomes. They don’t have to spend their time worried about organizational structure and integration noise that comes from merger activity.

In other words, our people can focus on doing their jobs without having to worry about how those jobs could be affected by an organizational upheaval. Mergers can be distracting for everyone throughout a company and can drain the focus from clients. We have no intention of selling ourselves or buying anyone else. We will remain laser-focused on being the best partner to our clients and evolving our business for them.

Your background is in fixed income. What are your thoughts on bonds in today’s dynamic market?

Balance is critical to successful investing. Balance, diversification and staying invested through market downturns help generate positive long-term outcomes. Bond yields are attractive after a series of significant rate hikes, and we’re now on the cusp of the Federal Reserve reversing policy — likely later in 2024. Historically, bonds have generated strong total returns during periods of rate cuts, and we’re encouraging clients to get out of cash, where appropriate, and into active bond investments, to own some duration before the cycle turns. That said, fixed income is not about market timing. It’s about providing diversification, income, inflation protection and capital preservation.

Finally, you’re a client of Capital Group Private Client Services. How has your experience been?

My Private Wealth Advisor, Scott Sandler, knows me and my family. He’s proactive in advising me on both my investments and broader financial planning. He and his team are also responsive to my questions and needs, and they utilize the full Capital Group network to help with topics like estate planning. With regard to my own accountant and lawyer, Scott is the captain of the team and coordinates all the resources internally and externally to deliver a holistic outcome. Other than being a Syracuse basketball fan, he’s a wonderful partner and friend — go UConn!