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Fund Spy

Capital Group Stays at the Top Through Hard Work

The equity side of American Funds' parent company remains among the best, and it's making strides with its fixed-income business.

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Morningstar recently issued a new Stewardship Grade for American Funds, a subsidiary of Capital Group. The firm's overall grade--which considers corporate culture, fund board quality, fund manager incentives, fees, and regulatory history--is an A. What follows is Morningstar's analysis of the firm's corporate culture, for which American Funds receives an A. This text, as well as analytical text on the other four Stewardship Grade criteria, is available to subscribers of Morningstar's software for advisors and institutions: Morningstar Advisor Workstation(SM), Morningstar Office(SM), and Morningstar Direct(SM).

Capital Group and its subsidiaries, including American Funds, remain among the industry's strongest stewards of investors' capital. With more than $1.4 trillion in assets under management, over 7,000 employees, and a history that goes back longer than eight decades, Capital Group long ago showed itself to be an enduring franchise. Reaching that apex required continual evolution, including the creation of the firm's multimanager system six decades ago. The development continues today, as the firm finds its footing in a changing fixed-income environment and a market more skeptical of active management. Through it all, keeping focused on investing, generating strong long-term results, and committing to financial advisors has made the company one of the world's largest asset managers, and it earns the firm a Corporate Culture grade of A.

Janet Yang, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.