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Monday, July 31, 2006|
Cap Group's Growing Heft Draws Growing Scrutiny
Capital Group Cos.'s famous fund family is being drawn into the limelight, again. Money Magazine wrote an article titled "Why success could spoil American Funds", asking if the Los Angeles-based fund group has grown too much. The Moneyarticle follows a recent report by Morningstar that claimed American Funds is "getting too big" (read more here).
In the article, Money concludes American's "research-intensive strategy and low operating expenses make it the best of the broker-sold fund families," but still recommends that readers "rethink the role that American Funds plays" in their portfolios.
The attention American Funds is getting is hardly surprising. Money notes that American manages the biggest mutual fund in the US, the $146 billion Growth Fund of America, and six of the top ten. At this point, we all just can't help looking at the 800-lb. gorilla.
Still, the increased focus on its funds is a change of pace for the fund advisor that built its reputation by quietly standing behind, not in front of, the advisors who sell its funds.
Printed from: MFWire.com/story.asp?s=12377
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