INVESTMENT APPROACH The Capital System™

Our long-term perspective put into practice

For 95 years, Capital Group has pursued its mission of improving people's lives through successful investing. The Capital System, our distinctive approach to active investing, is designed to generate the long-term results clients seek.

How it works

The Capital System is the engine that powers our pursuit of superior long-term investment results across asset classes.

It combines multiple portfolio managers within a single portfolio. Managers share insights but make their own investment decisions. Because they reflect diverse viewpoints, our portfolios have the potential to deliver more consistent results across market cycles.

The Capital System is rooted in three core pillars

Each pillar is deeply ingrained in our investment culture.

Collaborative research

Collabouration across portfolio managers, analysts, economists and quantitative research teams generates deeper insights across market cycles.

 

Diverse perspectives

Leveraging the highest convictions of multiple investment professionals helps reduce risk by creating diversification and multiple drivers of return.

Long-term view

Managers are discouraged from engaging in short-term thinking. Investing with a long-term view helps align our goals with those of investors.

 

The power of independence

Being privately held and employee-owned has allowed us to focus on the importance of consistent, long-term investment results and avoid the short-term quarterly earnings pressure many public firms face. This is reflected in the way our investment professionals are compensated, with the weighting favouring longer term results.*

*Compensation paid to our investment professionals is heavily influenced by results over one- , three- , five- and eight-year periods,

with increasing weight placed on each succeeding measurement period to encourage a long-term investment approach.

 

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.

Investments and services

We offer a broad range of equity, multi-asset and fixed income investments and services, all backed by extensive global research and informed by decades of investment experience.

Global Head of ESG Jessica Ground explains how the analysis of ESG issues enhances our investment research.

Our approach to ESG

We believe that considering material environmental, social and governance (ESG) issues in our research and analysis helps us better understand long-term risks and opportunities for our clients. By "material," we mean those ESG considerations that are likely to affect the value of an investment over time.

Connect with us

Contact a local team member in your region for more information.