We believe in deep, fundamental research. 

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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 results 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’s early leaders researched and documented the information. They used their statistical background and various information sources when evaluating companies. 

By the 1960s, Capital 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 was 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.

Face-to-face meetings are essential to our research. Our investment professionals conducted more than 12,000 meetings with companies in 2018.

All data as of December 31, 2018. 

One of our investment professionals has been covering Mattel for so long that he knows 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 51% of our managers living outside the U.S. in cities like Geneva, London, Tokyo, Singapore, Mumbai, Beijing 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 six numbers to know: 

All data as of March 31, 2019. 


We put our money where our mouth is.

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


1 As of December 31, 2018. 
2 Source: “Portfolio managers shun investing in their own funds.” Aliya Ram, Financial Times. September 18, 2016.


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.

A long-term perspective can really pay off. Take a look at how an initial investment of $10,000 grew over 84 years, despite market ups and downs. 

Class F-2

1Includes dividends of $45,282,202, and capital gain distributions totaling $95,798,465, reinvested in the years 1936–2018.

2Includes reinvested capital gain distributions of $9,258,017, but not income dividends totaling $4,652,617 taken in cash.

Source: Capital Group. The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. There may have been periods when the results lagged the index(es).

The stock market is represented by Standard & Poor’s 500 Index, a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. The index is unmanaged and, therefore, has no expenses.

Our beliefs

Your goals power ours.

We have four core beliefs central to helping you succeed.

More beliefs

Take control of your financial future.

Our investing fundamentals, market insights, tools and calculators can help you plan for life’s biggest moments. 

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. View fund expense ratios and returns

Returns shown at net asset value (NAV) have all distributions reinvested.

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.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which the results would have been lower. Read details about how waivers and/or reimbursements affect the results for each fund. View results and yields without fee waiver and/or expense reimbursement.

Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for estimated annual expenses. View dates of first sale and specific expense adjustment information.

Regular investing does not ensure a profit or protect against loss. Investors should consider their willingness to keep investing when share prices are declining.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.

Standard & Poor’s 500 Composite Index is a market capitalization-weighted index based on the average weighted results of approximately 500 widely held common stocks.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2019 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

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.

All Capital Group trademarks are registered trademarks owned by The Capital Group Companies, Inc. or an affiliated company. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies.

American Funds Distributors, Inc., member FINRA.

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