The third largest fund complex at the start of 2009. Known for its low profile with all but financial advisors and brokers and its focus on team-asset management.
Capital Group distributes its American Funds mutual fund family through brokers. As part of its core strategy to partner with, rather than compete with, brokers, its sole marketing efforts are made to financial intermediaries. For the same reason it shuns media coverage -- it did not have a dedicated PR team until after 2000.
Then a partner at Detroit-based of E.E. MacCrone & Co., Jonathan Bell Lovelace pulled most of his assets out of stocks in the summer of 1929 after deciding that stock prices no longer bore relation to the fundamentals. He moved to California and created JBL (now Capital Group) in 1931.
In 1932 he launched The Investment Company of America as a closed-end investment trust. The fund was open-ended in 1933 and is now a flagship of American Funds.
In 1958 The Capital Group created its "multiple portfolio counselor system" for its mutual funds.
In 1986 American Funds launched the first emerging markets growth fund in the U.S.
In 2002, American Funds expanded its presence in the U.S. retirement plan market and became a leading provider of 529 college savings plans.
American Funds is credited with the creation of "R" shares now widely used in the defined contribution plan market. Its laddered series of share classes allow plan sponsors and their advisors to create fund line-ups with cost structures in line with plan expenses.
Capital Group is employee owned, with its stock split into class A (one vote) and class B (10 votes) shares. Roughly 60 employees control the voting shares of the company.
Shunning the spotlight is also a key ethos in the firm's investment culture. Instead of star PMs, funds are managed by teams of associates. Portfolios are divided into sleeves each managed by an associates who act upon their highest investment convictions. The firm is also noted for its strategy of offering bonuses that reward long-term performance, such as that for four and eight year periods.
Cap Group currently has over 7,000 associates globally.
Tim Armour Chairman, CEO, Capital Group
Rob Lovelace Vice Chair, President, Capital Group
Phil De Toledo Capital Group
Mike Gitlin Chair of the Fixed Income Management Committee, Capital Group
Martin Romo President, PM, Capital Research Company, Inc.
Jody Jonsson President, Capital World Investors
Brad Vogt Chairman, PM, Capital Research Company
Jaya Kumar Global Chief Marketing Officer, Capital Group | American Funds
Darcy Kopcho Equity PM, Capital Group
Pete Thatch Senior Vice President, Director of Product Management, , American Funds
Kevin Clifford President & CEO of American Funds Distributors, American Funds Distributors, Inc,
James Lovelace Vice Chairman & Principal Executive Officer, American Funds
Michael Downer President, Capital Research and Management
Denise Cassin Director, SVP & Director of AFIG and Dealer Relations, American Funds
Bruce DePriester Director, SVP, Treasurer and Controller, Capital
John Fodor Co Founder, NextGen Recruiters
Bill Anderson Senior Vice President, Director of Institutional Product Management, American Funds Distributors, Inc.
Dean Rydquist Director, Senior Vice President, Chief Compliance Officer, American Funds
Jeff Klepacki Head of Intermediary Distribution in North America, Vontobel Asset Management
Mark Dence Senior Vice President, National Account Director, American Funds (Capital Group
Drea Neville Product Management Specialist, American Funds
Lorin Liesy Director Institutional Retirement Product Management, Capital Group | American Funds