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We believe in taking a long-term view.
LONG-TERM APPROACH
Because time matters more than timing.
At Capital Group, home of American Funds, we follow a long-term approach because we believe it’s the best way to help investors achieve their financial goals.
Whether it’s saving for college, retirement or a house, nothing happens overnight. Our commitment to long-term investing takes many forms, and our culture and system reinforce them all.
Long term means it pays to put in the time.
Our investment professionals’ compensation is tied to short, medium and long-term results, with a greater focus on the long term.
Why is that important? Because longer measurement periods mean more time for well-researched, high-conviction investments to perform well. Because they have time to build results, our investment professionals seek to avoid taking outsized risks in pursuit of short-term results.
As of December 31, 2018.
On average, the equity-focused American Funds hold their investments for 3.14 years, whereas their peers hold their investments for 1.82 years, based on the equal-weighted blended averages across each of the 18 equity-focused American Funds’ respective Morningstar categories. Please see the bottom of the page for a list of each fund’s respective Morningstar category.
Long term means experience.
All of our portfolio managers have more than 10 years of industry experience.
Almost nine out of 10 have at least 20 years in the industry, and more than a third have over three decades of experience.
As of December 31, 2018.
Many of our portfolio managers have experienced multiple market crises and have kept cool heads during bumpy rides.
As of March 31, 2019.
Long term means there is power in being private.
At public companies, quarterly profits often drive short-term thinking.
Capital Group is a privately held firm. So rather than being distracted by what’s good for "the Street," we can focus on what’s best for long-term investors. We believe that being privately held for more than 85 years has helped maintain our investor-focused culture.
Long term means prioritizing long-term superior results.
Our long-term thinking has gotten results for our investors for almost nine decades.
For over 85 years, we have managed multiple investment strategies through various investment vehicles. And while investment results vary, the equity-focused American Funds have generated strong results versus peers, with our funds having beaten their Lipper peer indexes in 92% of 10-year periods and 99% of 20-year periods.*
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.
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*Based on Class F-2 share results for rolling periods through December 31, 2018. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Expenses differ for each share class, so results will vary.
American Funds Morningstar categories: The peer groups against which we compare the American Funds in these charts reflect the averages of the relevant Morningstar U.S. Active Fund categories. The 18 equity-focused American Funds used in our analysis and their relevant Morningstar U.S. Active Fund categories with which they were compared are as follows: AMCAP Fund, The Growth Fund of America, The New Economy Fund (Large Growth); American Mutual Fund, Washington Mutual Investors Fund (Large Value); Fundamental Investors, The Investment Company of America (Large Blend); American Balanced Fund (Allocation—50% to 70% Equity); Capital Income Builder, American Funds Global Balanced Fund (World Allocation); The Income Fund of America (Allocation—70% to 85% Equity); Capital World Growth and Income Fund, New Perspective Fund (World Large Stock); New World Fund, American Funds Developing World Growth and Income Fund (Diversified Emerging Markets); EuroPacific Growth Fund (Foreign Large Growth); SMALLCAP World Fund (World Small/Mid Stock); International Growth and Income Fund (Foreign Large Blend).
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.
Use of this website is intended for U.S. residents only.