American Funds American Mutual Fund® Class F-2 AMRFX

American Funds American Mutual benefits from a seasoned management team and its time-tested, risk-conscious approach. The fund earns High People and Above Average Process ratings.

Although the firm made some lineup changes at the start of 2026 following a comprehensive internal review, the fund remains with capable managers. Roughly 25% of assets changed hands, with the strategy losing two managers and an analyst team, but those assets were reassigned to seasoned managers already in the fund. The strategy is now overseen by Charles Ellwein alongside managers James Lovelace, Martin Jacobs, Cheryl Frank, and Grant Cambridge. Each has more than two decades of firm experience and independently manages a sleeve of the portfolio. Additionally, a focused eligibility list helps offset the reduced analyst resources.

While the strategy’s conservative approach can lag in speculative markets, long-term results have been strong. Similar to its sibling American Funds Washington Mutual, the portfolio emphasizes dividend-paying, industry-leading companies. But this strategy carries a higher income target, and managers have the flexibility to hold cash. Companies on the roughly 300-name eligibility list must be industry leaders with investment-grade credit ratings. This approach typically places the fund near the large value/blend border of the Morningstar Style Box.

The strategy particularly excels in market downturns. In each of the past 10 market pullbacks of 10% or more, it has beaten the Russell 1000 Value category benchmark and typically outperformed its prospectus S&P 500 benchmark. For example, in early 2025’s pullback driven by tariff uncertainty, the fund’s 11.6% decline held up better than the large-value Morningstar Category norm, the prospectus benchmark, and the category index, thanks in part to picks such as GE Aerospace, RTX, Broadcom, and British American Tobacco.

Though the fund typically trails in strong rallies, it remains competitive across full market cycles. It lagged the S&P in calendar years 2023 through 2025, but slightly outperformed the value index in 2024 and 2025. Its lower volatility, as measured by standard deviation, versus the indexes and peers has driven solid risk-adjusted results. Its Sharpe ratio landed in the top decile of peers over the trailing 10-, 15-, and 20-year periods through March 2026.

Overall, this fund continues to distinguish itself as a compelling long-term option for risk-aware investors.

Correction (April 28, 2026): This report was updated to remove James Terrile, who was incorrectly listed as a manager.

Since its 1950 inception, this fund has been one of American Funds' more conservative large-cap offerings. It employs a time-tested, defensive approach focused on dividend payers and merits an Above Average Process rating.

The fund's five managers and one analyst team, who run their portfolios separately, invest primarily in competitively advantaged and attractively valued dividend payers. When compelling equity opportunities are scarce, managers can hold cash or bonds in sizable amounts. Regardless of its cash-and-bond exposure, each manager must meet an above-market, before-expense yield target to ensure the fund achieves its income objective. To keep managers from stretching for yield, however, that target is adjusted relative to its prospectus S&P 500 benchmark. As of December 2025, the portfolio’s projected one-year yield before expenses was about 2.1% versus the index's 1.3%.

The fund’s roughly 300-stock eligibility list helps managers identify firms with consistent profit growth. Eligible companies must carry an investment-grade credit rating and be leaders within their industries. Most holdings are US-domiciled, though managers may invest up to 20% of assets in Canadian companies and up to 5% in firms outside North America.

Previously, the strategy excluded companies that derive most of their revenue from alcohol or tobacco products, but the firm removed the restriction to avoid being classified as an environmental, social, and governance fund a few years ago.

The fund’s roughly 150- to 180-stock portfolio has a mega-cap focus. Its USD 248 billion average market cap in December 2025 placed in the highest quintile of the large-value category. The businesses aren’t just big but also profitable and competitively advantaged. The portfolio’s stocks on the whole boast top-third returns on equity relative to peers. Roughly 95% of them carry a wide or narrow Morningstar Economic Moat Rating, which also ranks in the category's top quintile. These attributes have contributed to the fund's muted risk scores.

The fund's eligibility requirements can have a big effect on its sector weightings. The fund has guidelines around companies having an investment-grade credit rating and those that prioritize paying a dividend. These criteria eliminate some of the consumer discretionary and technology highflyers, such as Tesla and Nvidia, and contribute to the strategy typically underweighting these sectors relative to the prospectus S&P 500 benchmark. The strategy is also light on communication services, but it added Alphabet to the portfolio in 2025’s second half. The strategy’s typically overweight industrials and healthcare, though.

Versus the category Russell 1000 Value benchmark, the strategy has typically been significantly underweight in financials and overweight in technology. For example, its 14.5% financials stake was almost 8 percentage points less than the value index’s 22.3% as of December 2025.

A high-single-digit to low-double-digit cash and bond stake has not been atypical here, but it was under 5% as of December.

American Funds' multimanager approach helps handle this fund's roughly USD 115 billion asset base. The fund's High People rating reflects its systemic strengths as well as the managers' experience, ability, and fund ownership.

After a firmwide self-assessment, this strategy underwent some personnel changes at the start of 2026. It had been run by equity subsidiaries Capital International Investors and Capital Research Global Investors since mid-2018, but on Jan. 1, 2026, Capital Group removed one of the strategy's subsidiaries, CII. This resulted in two managers, Brant Thompson and Will Robbins, and one analyst team coming off the strategy. Additionally, two managers, Grant Cambridge and Cheryl Frank, moved subsidiaries but remain on the fund.

Despite these shifts, the strategy remains in solid hands. Charles Ellwein heads up the strategy and the team of James Lovelace, Martin Jacobs, Frank, and Cambridge. Each has more than 20 years of firm experience and independently manages a sleeve of the portfolio. Ellwein ensures the overall lineup remains balanced across investment styles. The managers are supported by a deep research team of more than 50 analysts.

Roughly 25% of assets changed hands as a result of the assessment, but these were reassigned to existing seasoned managers. Additionally, the strategy’s narrow eligibility list mitigates the impact of reduced analyst firepower.

All five managers invest more than USD 1 million each in the fund.

Capital Group stands out from the pack as it enhances capabilities around strong core competencies. It earns a High Parent rating.

Since 1931, Capital Group, parent of American Funds, has thoughtfully built out capabilities to become one of the world’s largest asset managers, managing more than USD 3 trillion dollars. Building on the success of its long-term-oriented, multiple-manager system for global equities, the firm has developed robust fixed-income and multi-asset units, each managing more than USD 500 billion. In January 2026, as part of its periodic review of its now five distinct research organizations, Capital Group implemented changes to its equity investment subsidiaries. This exercise resulted in most equity strategies having at least one portfolio manager change, but according to the firm, it better balances each of Capital Group’s three equity groups in terms of investment breadth and helps the firm better align leadership opportunities across the groups. These kinds of shifts have occurred before, with the last coming in 2018.

Capital Group has also turned its attention to some modern opportunities. To address public/private market convergence trends, it launched in April 2025 two semiliquid funds with private market giant KKR. In keeping with its signature portfolio management approach, it splits those funds into multiple sleeves, which are managed independently by distinct managers at each firm. Capital Group plans to deepen this relationship with target-date and model portfolios, as well as public/private equity funds. On the other end of the spectrum, although the firm is firmly dedicated to active management, it has also acknowledged investor preference for passive investing and has thus partnered with indexing stalwarts Vanguard, BlackRock, and Schwab on active/passive models. Capital Group’s proven investment prowess, strong reputation among investors, and scale mean it can be selective with its partnerships.

In addressing another recent trend, since early 2022, the firm has launched more than 25 active exchange-traded funds globally, most of which are distinct, but several are similar to some of its legacy American Funds mutual funds. Unlike some of its peers, though, it has not filed for SEC exemptive relief to offer ETFs as a share class.

That’s a lot of change for such a storied and sizable firm, but Capital Group has a long history of serving investors well.

The fund's dividend-focused approach and ability to hold sizable cash and bond stakes have helped it hold up well in downturns. Indeed, in the last 10 market declines of 10% or more, it has beaten its category Russell 1000 Value benchmark in all. In 2022, the R6 shares’ 4.2% decline lost less than the category index’s 7.5% and its S&P 500 prospectus benchmark’s 18.1% loss and landed in the large-value category’s top 40%. In early 2025’s pullback, driven by tariff uncertainty, the fund once again showed its mettle and handily outperformed the index and category norm.

The fund's defensive posture means that it often lags in market rallies. This proved the case in 2020 after the market bottomed in March, and in calendar year 2023, as growth stocks rebounded, the strategy lagged the prospectus S&P benchmark by almost 17 percentage points. As the market rallied in 2025 after the April tariff announcement, the strategy lagged the category and both the value index and its prospectus benchmark.

The strategy has competitive risk-adjusted performance. From the early 2006 start date of the longest-tenured manager through March 2026, the R6 shares’ 9.2% annualized gain bested the large-value category norm’s 7.8% and the value index’s 8.3% gain. The strategy has typically been less volatile than the indexes and its peers, so its risk-adjusted results, as measured by the Sharpe ratio, typically look better. It landed in the top decile of peers over the trailing 10-, 15-, and 20-year periods through March 2026.

American Funds American Mutual F2's Prospectus Adjusted Expense Ratio is 0.38% per year. It places it in the cheapest quintile of the Morningstar US Fund Large Value Category, where the median fee is 0.75% per year. This cost positioning translates into a Medalist Rating Price Score of 1.89, which reflects its relative price positioning within the category. The Price Score ranges from -2.50 (most expensive) to +2.50 (cheapest), with higher scores indicating better cost competitiveness.