They believed they had a responsibility to provide stability and management continuity to their investors, so they asked themselves a key question: If a portfolio manager left the firm, how could they keep funds going strong?
They pioneered a plan. By dividing portfolios into sections and giving each of the existing managers a portion to administer, no portfolio would be too dependent on a single person.
This distinctive way of managing money became The Capital SystemTM. By incorporating the highest conviction investment ideas of each manager in a portfolio, we aim to both increase the diversity of those ideas and reduce the volatility of a fund, which can give investors a smoother ride in bumpy markets.
At Capital Group, we assemble teams of managers who have different investing styles and complementary strengths to help foster a diversified investing approach.
The benefits of our multiple portfolio manager approach can be boiled down to simple maths: If, for example, a fund has a star manager with 120 investment ideas, that’s a lot of ideas for one person to keep track of. But imagine if the fund were divided among four managers, including each of their 30 highest conviction ideas — ideas they've explored inside out — that’s the strength of The Capital System.
For illustrative purposes only.
Losing less when the market dips means investors stand to gain more when it climbs. And a steadier journey helps investors stay the course for the long term.
An innovative idea then and now, our unique multiple portfolio manager system has become a defining feature of our success. Distinct in the market and diverse in its strategy, The Capital System has helped many of our investment vehicles generate attractive long-term outcomes.
We have four core beliefs central to helping you succeed.
We understand that all your clients are unique, and offer an array of investment solutions designed to meet their needs.
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