Philosophy and history
American Funds’ history goes back to 1931 when Jonathan Bell Lovelace founded the investment management firm. Today the company remains privately owned by its employees.
- What you should know
- Investment management
- Focus on fundamental value
- Distinctive money management
- Global presence
- Experience and talent
What you should know
Here are some key facts about American Funds:
- There are 30 American Funds that cover the spectrum of investment objectives, as well as a series of retirement target date funds.
- We have investment offices in cities around the globe.
- American Funds serves more than 50 million accounts representing more than $900 billion in assets under management as of December 31, 2009.
- We are privately owned. This allows us to:
- Operate independently
- Focus on the interests of our fund shareholders rather than corporate shareholders
Investment management
Investment management is our only business.
We are distinguished by a time-tested investment approach in which we seek to provide consistent long-term investment results for our mutual fund shareholders, most of whom are investing for retirement. Following are some of the key factors that contribute to that success.
Focus on fundamental value
When we consider a stock or bond for our mutual funds, we look at its fundamental value.
- We do our own extensive research. We don’t rely on buying research from others.
- When we buy a stock it’s because we feel strongly about it.
- We’re attracted to companies with long-term potential, and we’re willing to wait patiently for the results to unfold. We believe that’s the best approach to long-term investing.
AUDIO CLIP: Hear one of our portfolio counselors
Jody Jonsson is a Senior Vice President of Capital Research Company. Hear Jody’s perspective on our long-term approach to investing.
Required version of Flash® Player not found
To see this content, please install the latest version of the free Flash Player from Adobe®.
(
AUDIO, 0:21)
Distinctive money management
We use a distinctive method of managing our funds.
- Several money managers are each assigned a separate portion of one of the American Funds to manage.
- Another portion of the fund is managed by a group of research analysts who are experts in specific industries. No one else does this in the mutual fund industry.
Global presence
We believe that a global presence is critical to making informed investment decisions, no matter where you invest.
We opened our first overseas office in 1962, well before most financial managers began investing internationally.
Last year we made thousands of research visits in more than 60 countries. It’s emblematic of our commitment to thoroughly understanding the companies we invest in on your behalf.
Experience and talent
We strive to attract and retain unusually talented people from diverse cultural, business and national backgrounds.
Their considerable experience means that our investment professionals aren’t “practicing” with shareholders’ 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 summary prospectus and prospectus, which can be obtained from your plan’s financial professional or downloaded and should be read carefully before investing.