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Can American Funds Maintain Its Edge?

Even well-rounded active managers can get better.

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American Funds' parent Capital Group now has a strong claim to be the world's most well-rounded active manager. But getting there wasn't easy, and staying there will be hard.

A Better Bond Lineup
The firm's fixed-income operations are no longer a laggard. After the credit-heavy flagship American Funds Bond Fund of America (RBFGX) performed poorly in 2008, Capital bolstered risk analytics and derivatives capabilities, recruited seasoned investors, and increased coordination between portfolio managers. Fixed-income and global trading head Mike Gitlin, a recruit from T. Rowe Price in 2015, also prioritized providing more ballast in in the next equity bear market.

Alec Lucas has a position in the following securities mentioned above: ANWPX. Find out about Morningstar’s editorial policies.