Office address: 333 S. Hope Street, 53rd Floor, Los Angeles, CA 90071
Website: capitalgroup.com
Year established: 1931 Company type: financial services
Employees: N/A Expertise: mutual funds, exchange-traded funds, equity management, fixed income management, retirement planning, 529 college savings plans, variable annuities, portfolio construction, target-date funds, risk management solutions
Parent company: Capital Group
Key people: Mike Gitlin (CEO), Martin Romo (chief investment officer), Jody Jonsson (vice chair), Canise Arredondo (CFO), Rob Klausner (COO), Greg Miliotes and Noriko Honda Chen (portfolio managers)
Financing status: privately held corporation
American Funds operates in Los Angeles as Capital Group's mutual fund division. The firm offers mutual funds, ETFs, target date funds, 529 college savings plans, and variable annuities. Products are also available through financial advisors and major brokerage platforms.
American Funds began as the mutual fund division under Capital Group's umbrella structure. Jonathan Bell Lovelace founded Capital Group in Los Angeles during the Great Depression in 1931.
The parent organization opened a New York office in 1943 but relocated headquarters back to Los Angeles. It also introduced the Capital System in 1958 as a fresh portfolio management approach.
American Funds expanded internationally starting in 1962 to reach major financial centers globally. Service centers specifically for American Funds shareholders operated in California starting in 1983.
American Funds' Growth Fund of America, launched in 1973, became a flagship offering. The division also entered the ETF market in 2022 with actively managed fund products.
In 2023, the division launched 12 model portfolios combining active mutual funds with passive ETFs from Schwab, Vanguard, and BlackRock. This move showed the firm's commitment to modernizing offerings for financial advisors and investors. The new portfolios became available through Fidelity, Envestnet, and Orion platforms shortly after.
American Funds offers investment products managed through in-house research and multi-manager accountability. The division serves individual and institutional investors with long-term focused strategies:
The firm's range of products spans multiple asset classes and investor goals across life stages. The division's in-house research and multi-manager approach ensures consistent quality across all offerings.
As a division of Capital Group, American Funds operates within the parent organization's values and culture. The parent company aims to foster a collaborative workplace where diverse perspectives drive better investment outcomes.
Diversity and inclusion remain central to American Funds' operations. Since Capital Group prioritizes diverse perspectives and inclusive teams, the firm also works to increase women and underrepresented minorities in leadership positions.
American Funds also integrates environmental, social, and governance (ESG) factors into its investment approach. The organization remains committed to promoting sustainability and expanding access to financial services globally.
Mike Gitlin serves as president and CEO of Capital Group, American Funds' parent organization. Gitlin joined Capital Group after leading fixed income operations at T. Rowe Price. He holds a degree from Colgate University and has over 31 years of investment experience.
Key people are made up of leaders from the management committee:
The leadership team from Capital Group provides strategic oversight across global operations, including American Funds. Most committee members bring deep expertise from lengthy careers within the organization.
American Funds' parent organization Capital Group expanded its RecordkeeperDirect retirement plan platform to serve small and mid-sized businesses. American Funds integration into the platform allows advisors to offer clients more investment flexibility options. The updates position the division to capture growing retirement plan opportunities as advisors embrace customizable solutions for business owners.
The division is also a key mutual fund provider for advisors using direct-to-fund business models with firms like LPL Financial. In 2025, a new five basis point fee that LPL introduced will increase costs for advisors holding American Funds directly. This fee may push advisors toward advisory platforms, potentially affecting American Funds' access to LPL's large advisor network.
The mutual fund industry should consider itself lucky if, as expected, the SEC this summer recommends placing a cap on 12(b)-1 fees some investor now pay annually via "level loads," industry experts said.
The use of alternative hedge-fund-like strategies within mutual funds was a hot topic of discussion last week at the Investment Company Institute's 50th annual general membership meeting in Washington.
The Hartford Financial Services Group announced changes to its flagship variable annuity and its sales force.
Domestic-equity funds posted net inflows of $17.5 billion and government funds had nearly $3 billion.
In a move that has stunned the Section 529 college savings plan business, James Fadule has left his position as president of industry powerhouse Upromise Investments Inc.
The Securities and Exchange Commission is expected to issue a proposal by summer that would cap 12(b)-1 fees that investors in Class C mutual fund shares are charged, according to the general counsel of the Investment Company Institute.
Industry observers are cheering the news that the hugely popular American Funds group stood up to regulators — and won.
Two of the Section 529 college savings plan industry's most sought-after contracts up for renewal this year have been taken off the table, leaving Michigan as the biggest prize for ambitious program managers in 2008.
The inflows slowed substantially as investors poured more money into exchange traded funds.
Although Fidelity Investments and Janus Capital Group Inc. recently designated multiple managers for specific portfolios, neither firm is abandoning their individual-portfolio-manager system.
Mutual fund investors will learn the hard way at the end of this year that you can never keep the tax man away for long.
Dwindling assets and intense regulatory scrutiny continue to take their toll on mutual fund B shares, which at the current rate of attrition are likely to become nearly extinct inside five years.
NEW YORK — Wholesalers seeking an adviser’s good graces should forget the freebies and concentrate on developing solution-oriented consultative relationships.
