We believe in deep, fundamental 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 the results we have delivered to our investors.

We pioneered industry standards.

In the early days of Capital Group in the United States, there was very little stock market or economic information readily available to investors.

So Capital’s early leaders researched and documented the information themselves. They used their statistical backgrounds and analysed various information sources when evaluating companies.

By the 1960s, Capital had become a global investing trailblazer, investing in companies across the globe. Yet again, we found that statistical information and investment data for non-US 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.

MSCI Indices are now maintained by MSCI, Inc.

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 senior 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.  Source: Capital Group

One of our investment professionals has been covering US toy manufacturer 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.”

Examples provided for illustrative purposes only. This information has been provided solely for informational purposes and is not an offer, or solicitation of an offer, or a recommendation to buy or sell any security or instrument listed herein.

We get a world of context.

Information isn’t useful in isolation. 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 US, 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 our managers and analysts based in cities across the globe, including Los Angeles, New York, San Francisco, Geneva, London, Tokyo, Singapore, Mumbai, Beijing to 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 

Data as at 31 December 2018. Source: Capital Group

We put our money where our mouth is.

Our portfolio managers are typically invested alongside clients in the investment strategies they manage. For instance:

For illustrative purposes only. American Funds are not registered for sale outside of the United States. This illustration uses U.S. mutual fund industry data as an example, as the level of manager ownership is not systematically disclosed for funds outside the U.S. 

1 As of 31 December 2018

2 Source: “Portfolio managers shun investing in their own funds.” Aliya Ram, Financial Times. 18 September 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 with confidence.

A long-term perspective can really pay off. Use the chart below to compare the growth of AUD$10,000 in the New Perspective strategy1 against the index2 over the years, through the ups and inevitable downs that are an inescapable part of investing. You can build your own chart by customising the date range or viewing results against some of the more infamous market downturns, from the oil crisis of the 70s to the financial crisis of ’08.

Capital Group New Perspective strategy: The value of a hypothetical A$10,000 invested at launch. Launched over 45 years ago.

Capital Group New Perspective Fund (AU)
Investment results as at 31 December 2020 in A$ terms (after fees and expenses)

Lifetime: 20 November 2015 – 31 December 2020

% Fund3 Index4 Excess return5
2015 1 month 10 days -2.6 -3.2 0.5
2016 2.2 8.3 -6.1
2017 18.4 14.9 3.5
2018 3.8 0.7 3.1
2019 30.0 26.9 3.1
2020 12 months 21.1 6.0 15.1

Past results are not a guarantee of future results.

Data as at 31 December 2020 unless otherwise stated.

1. Results prior to the launch of Capital Group New Perspective Fund (AU) (CGNPAU) on 20 November 2015 are derived from the American Funds New Perspective Fund in A$ from 31 March 1973. The strategy is advised by the same portfolio management team managing to the same investment objectives. The returns are after fees, based on the total management cost of 1.05% p.a. that was applicable to CGNPAU up until 30 April 2017 and 0.95% with effect from 1 May 2017. American Funds are not registered for sale outside of the United States. Source: Capital Group

2. MSCI ACWI ex Australia (with net dividends reinvested) from 20 November 2015; previously MSCI ACWI (with net dividends reinvested) from 30 September 2011 and MSCI World Index (with net dividends reinvested) prior to that. Source: MSCI

3. Net of management fees and expenses. Fund results are based on close of market returns (T+1). Source: Capital Group

4. The index shown is MSCI ACWI ex Australia (with net dividends reinvested). Source: MSCI

5. The excess return is calculated arithmetically.

Our beliefs

Your goals power ours.

We have four core beliefs central to helping you succeed.

Find your investment solution

We understand that all your clients are unique, and offer an array of investment solutions designed to meet their needs.

Investment thinking from Capital Group

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