Capital Group Bets on a Different Kind of Tech
Firm's recent filing to launch nontransparent actively managed ETFs is a wager on new distribution technology.
Capital Research and Management Company, the firm behind the storied American Funds franchise, has been on the ropes for years. The firm's cold streak began in 2008, and in the intervening six-plus years, the company has seen approximately one quarter of one trillion dollars of investors' money leave its lineup. That said, even after accounting for these outflows, American Funds remains the third-largest fund family in the U.S.
The reasons underlying American Funds' woes are many and were expertly documented by my colleague John Rekenthaler in a pair of articles: "Unlikely Cousins" and "The Wrong Side of History." He argues that investment performance has done little to take the shine off of this fund family:
Ben Johnson does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.