Office address: 53rd Floor, 333 South Hope Street, Los Angeles, CA 90071
Website: www.capitalgroup.com
Year established: 1931
Company type: financial sevices
Employees: 9,000+
Expertise: sub-advisory services to mutual funds, equity, fixed income, multi-asset solutions, ESG, retirement planning, global markets, investment research, wealth management, active management, financial planning, investment management
Parent company: N/A
Key people: Mike Gitlin (CEO), Noriko Chen (portfolio manager), Canise Arredondo (CFO), Rob Klausner (COO), Matt O'Connor (head of NACG), Martin Romo (CIO), Jody Jonsson (vice chair)
Financing status: N/A
Capital Group, based in Los Angeles, is a global investment firm managing over $2.7 trillion in assets as of June 2024. With more than 9,000 employees in 32 offices worldwide, they focus on delivering strong, long-term results for investors through research-driven strategies. For over 93 years, they have helped individuals and institutions grow their financial futures.
Capital Group was founded in 1931 by Jonathan Bell Lovelace in Los Angeles during the Great Depression to help investors navigate challenging economic times. In 1943, the firm opened a New York office but moved their headquarters back to Los Angeles a year later. The firm introduced The Capital System in 1958, a unique approach to portfolio management.
By 1962, Capital Group expanded internationally, opening its first office outside the US in Geneva, followed by offices in London, Tokyo, Hong Kong, and Singapore. In 1983, they launched a dedicated service center for American Funds shareholders in California.
The company celebrated its 90th anniversary in 2021 and entered the ETF market in 2022 with its first actively managed funds.
Capital Group offers a broad range of investment solutions tailored to various client needs:
Capital Group's services are structured around three independent investment groups, each making its own equity and proxy voting decisions. Their fixed income professionals manage research and investments across the organization, ensuring comprehensive coverage in both equity and fixed income sectors.
Capital Group promotes a collaborative work environment where diverse perspectives are valued and supported. They are committed to equal opportunity employment and offer competitive compensation and benefits that prioritize employee well-being. Their focus on a positive work-life balance is reflected in a variety of programs, including:
The organization values diversity as a cornerstone of its business, actively seeking different perspectives and experiences to build inclusive teams. The company is committed to fostering a workplace where every voice is heard, believing that inclusion leads to better outcomes. This focus on belonging drives their diversity, equity, and inclusion efforts, which include:
Capital Group integrates environmental, social, and governance (ESG) issues into its investment process through a three-part approach: research frameworks, monitoring, and engagement. They have developed over 25 sector-specific frameworks and use over 50 data sources to identify ESG risks.
Long-standing relationships with company management allow for ongoing dialogue about managing ESG risks and opportunities, supporting efforts to address key issues, including:
In terms of sustainability, Capital Group invests in people, communities, and the environment through its business practices. Their efforts include expanding renewable energy, improving supplier relationships, and adhering to climate-related financial disclosures. They aim to empower employees to support meaningful causes and work toward greater access to financial services for all.
Mike Gitlin serves as the company CEO and president, overseeing investment strategies for clients worldwide. He previously held leadership roles at T. Rowe Price, Citi, and Credit Suisse Asset Management. Gitlin earned his bachelor’s degree from Colgate University and started his career as a trader at George Weiss & Associates.
The following are key leaders at Capital Group, each playing vital role in the company’s operations:
Capital Group recently introduced the Target Date Retirement Blend Series, combining their active management with passive strategies from BlackRock and State Street. This new series offers a diversified solution for retirement planning, appealing to a broader range of plan sponsors. By blending active and passive strategies, it aims to meet various preferences, from cost-conscious options to those seeking higher returns.
Capital Group recently partnered with Orion, offering new opportunities for financial advisors through this collaboration. These portfolios, available through Orion’s platforms, are designed to help advisors meet client goals with dynamic asset allocation. This collaboration reflects Capital Group’s commitment to offering innovative, actively managed investment solutions while expanding its presence in the growing ETF market.
Private equity exit values and volume are up sharply, but investments in RIAs are taking a different path: “Many PE firms are now structuring proposals that allow RIAs to roll equity into their next fund,” Hue Partners' Emily Blue told InvestmentNews.
Wealth managers offer their opinions on gold in the wake of the yellow metal's record run.
A federal court's decision puts fractional life insurance policies under SEC scrutiny, forcing wealth advisors to revisit compliance and sales strategies for alternative investments.
"[Constellation] was able to help negotiate a credit line with much greater terms than we've had previously. That will give us the ability to continue to grow over the next several years," Tyler Vernon of Merit Financial Advisors told IN.
The $3 trillion investment manager is projecting an early 2026 launch for its blended strategy, which would put up to 40% of assets in PE investments or funds offered by KKR.
Raymond James also lured another ex-Edward Jones advisor in South Carolina, while LPL welcomed a mother-and-son team from Edward Jones and Thrivent.
Asset management firm expands and rebrands subsidiary for institutional-quality offering.
“The questions is, how does an asset manager choose opportunities like this to invest in,” one executive said. “What’s the due diligence?”
The specialists formerly affiliated with Citizens will bridge a gap among much-needed objective expertise to independent RIAs and their business owner clients. "The client business owner today ... does not have access to objective and independent valuation services," co-founder Tim Bello told InvestmentNews.
The finance professor and quant investing veteran believes with the right guardrails, artificial intelligence could be trusted to meet the high bar of fiduciary advice.
A new PitchBook analysis unpacks sticking points relating to liquidity, costs, and litigation risk for would-be investors and plan sponsors.
A drop in interest rates and easier access to capital has reignited appetite among private equity-backed consolidators, who accounted for 53% of RIA deals so far this year- their highest share since 2021 according to DeVoe & Company.
Plus, a $400 million Commonwealth team departs to launch an independent family-run RIA in the East Bay area.
In an ironic twist, an analysis of regulatory filings suggests the Jack Bogle-founded firm is supporting the very "immature asset class" it's questioned in the past.
The Atlanta, Georgia-based national wealth firm revealed its new PE partner as prior backers Wealth Partners Capital Group and HGGC's Aspire Holdings exited their investments.
