What makes American Funds different
With about 8,000 mutual funds to choose from, your employer believes American Funds is the right choice to manage your retirement savings.
American Funds has applied a consistent philosophy and a consistent approach to generate consistent results for nearly 80 years. We have grown into one of the largest investment management firms in the world.
We believe that our combination of strengths has enabled us to earn our shareholders’ trust. Our emphasis on consistent returns with low volatility — whether the market is up or down — has kept shareholders with us for a long time.
We believe that our shareholders can benefit from five factors that make American Funds different:
- Focus: A long-term, value-oriented approach
AUDIO CLIP: Hear one of our portfolio counselors
Listen to Gregg E. Ireland, an American Funds portfolio counselor, talk about our long-term investing approach. To listen to the commentary, you must have RealPlayer®.
- Insight: An extensive global research effort
- Perspective: The multiple portfolio counselor system
- Experience: Knowledgeable investment professionals
- Value: A commitment to low management fees
Focus: A long-term, value-oriented approach
Our investment philosophy is based on doing what’s right for our shareholders.
- We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term.
- We do the thorough research necessary to determine the actual worth of an organization.
- We always pay particular attention to risk and our efforts to protect investors’ money.
A global reach
Insight: An extensive global research effort
We commit substantial resources to find the best investment opportunities around the world. We have more than 200 investment professionals — who speak more than two dozen languages — based in research offices worldwide. Last year, they visited thousands of companies in more than 60 countries. To determine a security’s true value, we get to know a company inside and out. We visit a company before and after we invest in its securities.
To get a well-rounded view of a company’s operations, we also meet its suppliers, bankers, customers and competitors, as well as industry specialists, economists and government officials.
Perspective: The multiple portfolio counselor system
Under the multiple portfolio counselor system, each fund’s assets are divided into smaller, more manageable portions. Each segment is managed independently by a different portfolio counselor and is monitored to ensure consistency with fund objectives and overall guidelines. Generally, one portion is managed by a group of research analysts, who invest in the industries or areas they cover. We’ve been using the system for half a century.
Our unique approach to managing funds blends teamwork with individual accountability. The variety of perspectives adds diversification. Portfolio counselors and research analysts can act on their beliefs without a need for consensus. Counselors can be added to a fund as assets grow. If one manager retires or leaves the fund, only a portion of the fund’s assets changes hands.
Depth of experience
Experience: Knowledgeable investment professionals
Managing assets is a skill learned only after years of experience and training. American Funds portfolio counselors have an average of 25 years of investment experience, providing a depth of knowledge and broad perspective that few organizations have.
We also have research analysts who have been building relationships with the same companies for decades. This long management tenure has helped us maintain our consistent investment style over the years.
Value: A commitment to low management fees
When choosing investments, it’s important to consider ongoing investment management fees. Annual expenses can have a significant impact on long-term returns.
We strive to keep fund management fees low. Low management fees can help ensure that total plan costs remain reasonable.
For in-depth information about any of the American Funds, including charges and expenses, obtain the fund prospectus from your financial professional or download it online. Read it carefully before investing or sending money.
Return to topInvestors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s prospectus and/or summary prospectus, which can be obtained from your plan’s financial professional or downloaded and should be read carefully before investing.