We divide portfolios into segments, each run by an individual manager. The managers represent a diverse set of backgrounds, styles and approaches. Typically, each is personally invested in the portfolios they manage.
While managers collaborate and share insights, each invests independently according to their strongest convictions. The resulting portfolios are a diverse collection of investment ideas, not just one manager’s perspective. This approach creates the potential for portfolios to fare well in a variety of market conditions.
Our investment analysts conducted more than 20,000 meetings with companies in 2020. Keeping in close contact with management teams and spending time on location, when possible, help drive deep operational understanding and informs all our investment decisions.
At most firms, analysts only recommend investments, but at Capital Group they typically have the opportunity to actually invest in their highest conviction ideas. Most funds have research portfolios managed by analysts.
Our multiple-manager system supports our commitment to investors with long-term goals. It has allowed us to navigate near-term noise and periods of economic and market uncertainty in pursuit of key goals.
We strongly believe long-term investing aligns with client goals, and our culture and compensation structure reinforce that focus. Longer measurement periods mean more time for well-researched high-conviction investments to perform well.
The Capital System builds portfolios that house multiple, disparate views. This diversity creates the potential for portfolios to fare well in a variety of market conditions.