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 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.
Meetings are essential to our research. Our investment professionals conducted more than 20,000 meetings with companies in 2020.
All data as of 31 December 2020. 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 numbers to know
Data as at 31 December 2020. 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 2020
2 Capital Group, based on Morningstar data as of 03 March 2021.
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.
Your goals power ours.
We have four core beliefs central to helping you succeed.