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.
These disability savings plans will be first to be sold exclusively through financial advisers.
No-transaction-fee options are a big hit with investors, but funds wind up paying the costs — and passing them on.
Rising dollar, falling Europe add to 2018 losses in May, but international funds are still a good relative value.
That could mean fewer wholesalers calling on individual advisers in the field.
Some individual investors even added to their stock holdings last month, survey shows.
T. Rowe Price and American Funds clobber in target-date-fund categories.
An interactive list of all the funds honored, across all years of return and by category.
Those hoping the mini-crash will solve the active vs. passive debate will have to wait a bit longer. But advisers who touted the advantages of diversification have lots to crow about.
Stocks took a beating in recent days amid concerns that a healthy economy could trigger higher inflation. Here's how the 50 largest funds, ranked by assets, performed. <b><i>(More: <a href="http://www.investmentnews.com/article/20180206/FREE/180209949/stock-market-sell-off-takeaways-to-share-with-clients" target="_blank">Stock market sell-off: Takeaways to share with clients</a>)</b></i>
Decision comes as financial services companies, especially those focused on active management, have been sued for self-dealing.
Inflation worries, international rates pushing Treasuries yields higher.
CEOs and money managers sometimes have blind spots when purchasing their own company's stock or fund's shares.
The firm earlier this year won dismissal of a lawsuit alleging self-dealing through use of its target-date funds.
Despite the huge market run-up, there are still plenty of areas from which to harvest losses.
Energy, real estate and small-cap value funds have struggled this year compared to other categories.
