FUNDAMENTAL RESEARCH

We believe in deep, fundamental research

RESEARCH

When we invest in companies, we want to know them from break room to boardroom. 

Our deep and fundamental research is the backbone of our company and essential to delivering superior outcomes to our investors.

We pioneered industry standards.

In the early days of Capital Group, home of American Funds, there was very little stock market or economic information readily available to investors. 

So Capital Group's early leaders researched and documented the information. These leaders used their statistical backgrounds along with various information sources when evaluating companies.

By the 1960s, Capital Group had become a global investing trailblazer, investing in companies outside the U.S. Yet again, we found that statistical information and investment data for non-U.S. markets were scarce.

So we created the Capital International indexes, now known as the Morgan Stanley Capital International (MSCI) indexes, to help evaluate companies and compare their results with global competitors. In other words, we put the CI in MSCI.

Today, we maintain our high standards as we evaluate the depth and breadth of a company. But we know that numbers are only part of the picture.

We’ve got boots on the ground.

We believe that the best way to get to know a company is to know the people behind the business.

That’s why, when we research companies, it’s much more than a site visit. We want to know both upper management and the employees on the ground. 

Our equity analysts also collaborate with our fixed income analysts, who draw on deep research across sectors, including rates, credit, mortgages and currencies.

Meetings are essential to our research. Our investment professionals conducted more than 21,000 meetings with companies in 2022.

Graphic illustrates Capital Group′s commitment to ongoing relationships with and research of companies. We have 113 portfolio managers with an average tenure of 22 years and 178 equity and 57 fixed income analysts, who engage in deep-dive research and more than 21,000 company meetings in 2022, including extensive visits to operational facilities and within the supply chain. As of December 31, 2022.

All data as of December 31, 2022.

One of our investment professionals has been covering Mattel for so long that he may know the business culture better than many of its former leaders. As Greg Wendt, a Capital Group portfolio manager explains,

“Continuity of coverage can provide a significant advantage in evaluating management. At this point, I have covered Mattel through seven CEOs and for over 30 years, which is longer than the current CEO has been in the toy business.”

We also believe that it’s the management team behind a company that drives its success, which makes our face-to-face research invaluable. As one of our leaders said in the early days of our business, “The only difference between Chrysler Corporation and its predecessor [the struggling Maxwell Motor Company] is Walter Chrysler.”

We get a world of context.

Information isn’t useful in a vacuum. We need to know how industries in different regions compare to each other in order to deeply understand the companies themselves.

For example, to understand companies in the steel industry in the U.S., investors must have insight into the steel industry in Europe, Japan and China.

At Capital Group, we have a global research team with extensive scale and scope, covering both equity and fixed income investing. With 48% of our portfolio managers and analysts living outside the U.S. in cities like Geneva, London, Tokyo, Singapore, Mumbai, Shanghai and Hong Kong, we can closely follow trade and other global issues like few others can.

When it comes to our research team, these are the numbers to know:

Graphic illustrates that Capital Group′s wide-ranging global research team comprises more than 470 investment professionals, 113 portfolio managers and 245 investment analysts. Of these professionals, 171 are based outside of the United States, with more than 40 languages spoken as of December 31, 2022.

Source: Capital Group. As of December 31, 2022.

We put our money where our mouth is.

Nearly all of our portfolio managers are invested in the funds they manage.

Graphic indicates that in the financial industry at large, 43% of the 6,066 actively managed mutual funds are run by portfolio managers who do not invest a single dollar of their own money in their products, while 91% of American Funds assets are invested in mutual funds in which at least one manager has invested more than one million dollars.

* As of 2/17/23. There is 2.7% of manager ownership unaccounted for by Morningstar's calculation at the time data was pulled. Capital Group's manager ownership in previous years has been consistently around the 99th percentile. 
Capital Group, based on Morningstar data as of 2/17/23. All funds included in the analysis are non-index (active funds), based on oldest share class. Manager ownership information classified as "inconsistent" by Morningstar is not included. If fund liquidated or merged, this information is as of the latest Statement of Additional Information.

We take the time to do it right. 

Our research is too important for shortcuts.

Our fundamental, research-driven approach, the relationships we’ve built over decades and our extensive global research effort allow us to invest confidently.

Our beliefs

Your goals power ours

We have four core beliefs central to helping you succeed.

More beliefs

Build a more personal portfolio.

Your clients need portfolios as individual as they are. Our portfolio construction approach lets you customize a mix that works with the individual goals of your clients.

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.

Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.

American Funds Distributors, 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.