On July 1, 2020, Capital Group, the advisor to the American Funds, announced that portfolio manager Gregory Johnson will retire in March 2021 and will step off of American Funds American Balanced at that time. Johnson also served as lead principal investment officer of the fund until June 8, 2020, and in that role made final asset-allocation decisions. Johnson has a great deal of experience, with 26 years at the firm and 17 years as a manager of the fund, so his departure will be a loss. However, the fund will still be managed by a deep, veteran crew that includes five named equity managers, three fixed-income managers, and one “balanced” manager who invests in both stocks and bonds. Johnson’s impending retirement does not affect the fund’s Above Average People rating, the Morningstar Analyst Rating of Silver for the 12 cheapest share classes, or the Bronze rating for the five others.
Will ABALX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable ABALX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the ABALX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of ABALX’s parent organization’s priorities and whether they’re in line with investors’ interests.