Hidden asset no more? Why evaluating human capital matters
  • Our research suggests human capital is potentially one of the most impactful and underappreciated drivers of business value.
  • Tight labour markets, shifting demographics and new regulations suggest that human capital is becoming an even more crucial consideration for active investors.
  • We have identified five indicators that, in our view, can help investors discern how human capital management is affecting investment value. 

How does a company attract, develop and retain the right people? Does healthy corporate culture support higher innovation? What are relations like between employees and management? At Capital Group, we believe that considerations such as workforce skills, working conditions and labour relations can be very important in understanding a firm’s long-term risks and opportunities.

A hidden asset of high importance and low transparency

Learn more about why our investment professionals believe human capital can potentially drive both value creation and destruction.

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Past results are not a guarantee of future results. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.

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. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.

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.