Capital Group Companies

Capital Group Companies, Inc.
Private
Industry Financial services
Founded 1931
Founder Jonathan Bell Lovelace
Headquarters Los Angeles, California, United States
Area served
 Worldwide
Key people
 Capital Group Management Committee:
Tim Armour
Kevin Clifford
Phil de Toledo
Darcy Kopcho
Rob Lovelace
Martin Romo
Brad Vogt
Products Mutual fund, Private wealth management, Private equity investing, Retirement plan services
AUM Increase US$ 1.5 trillion
(August 27, 2016)
Number of employees
 7,000+ (December 31, 2015)
Subsidiaries Capital World Investors
Capital Research Global Investors
Capital International Investors
Website thecapitalgroup.com

Capital Group is an American financial services company, it ranks among the world’s oldest and largest investment management organizations, with $1.39 trillion in assets under management. Founded in Los Angeles, California in 1931, it is privately held and has offices around the globe in the Americas, Asia, Australia and Europe. Capital offers a range of products, including more than 40 mutual funds through its subsidiary, American Funds, as well as separately managed accounts (or collective investment trusts), private equity, investment services for high net worth investors in the U.S., and a range of other offerings for institutional clients and individual investors globally.

Investment Philosophy

investment philosophy, based on active portfolio management and in-house research to drive long-term investment results, has been consistent since the company was founded. The firm is known for its long-term focus and research-based approach and maintains a large in-house research team that develops proprietary insights into investment decisions. The Capital Group companies manage equity assets through three investment groups that make investment and proxy voting decisions independently.

History

In 1931, Jonathan Bell Lovelace founded the investment firm, Lovelace, Dennis & Renfrew, which would eventually become Capital Group. Lovelace had previously been a partner in the stock brokerage firm E.E. MacCrone, where he explored the concept of developing an open-end mutual fund. He eventually sold his stake in that company, just prior to the Wall Street Crash of 1929.

In 1933, Lovelace’s firm took over management of The Investment Company of America, which he had launched at E.E. MacCrone in 1927.[1] For the next 20 years, his firm enjoyed modest success.[2] As mutual funds gained in popularity in the 1950s, Capital’s roster of mutual funds grew.

The International Resources Fund, established in 1955,[3] was Capital’s first foray into international investing. A year earlier, Lovelace had established an international investment staff at the urging of his son, Jon Lovelace, Jr. The establishment of the firm’s first overseas research office in Geneva followed in 1962.[4]

In 1958, Jon Lovelace, Jr. introduced a new system of managing the firm’s mutual funds and accounts. Rather than assign a portfolio to a single manager, he divided each portfolio among several managers. Each manager would share ideas with peers but have total discretion over a section of the portfolio. Known today as The Capital System, it avoids the phenomenon of creating single-manager “stars,” who can impact a fund’s results should they leave.[5] In the mid-1960s, Capital began to include research analysts in the management of the portfolios, reserving a portion of each to allow analysts to pursue their highest conviction investment ideas.[6]

Capital Group’s long-term approach has helped it avoid some of the pitfalls that have plagued other firms. In the late 1990s, the firm was criticized for not offering then-popular tech funds. But when the tech bubble burst, Capital was praised for not jumping on the bandwagon.[7]

In the early 2000s, new share classes and offerings were introduced, such as a 529 college savings plan and retirement target date funds. Named for the expected year of withdrawal, the target date funds automatically rebalance their mix of equities and fixed-income holdings as the investor approaches the expected date of retirement.

Today, Capital Group has expanded its mutual fund offerings outside the U.S. to include Europe, Canada and Asia and provides research and investment services to institutional investors around the globe.

Accolades

Morningstar found that Capital Group’s American Funds created the most wealth for investors in the period between December 31, 1999, and December 31, 2009.[8]

Many of the firm’s funds were also included in Morningstar’s “Fantastic 50” in 2015 and its “Fantastic 48” in 2014.[9]

Offices

Capital Group employs more than 7,000 associates worldwide. North American locations include Atlanta, Los Angeles, New York, San Francisco, Toronto and Washington, D.C. As part of expansion plans in Europe, Capital Group established a presence in Frankfurt, Madrid, Milan and Zurich, adding to its offices in Geneva, London and Luxembourg.[10] Its Asia offices include Beijing, Hong Kong, Mumbai, Singapore and Tokyo. Capital Group also has a growing presence in Sydney[11] and a private equity office in São Paulo.

Controversy

As reported in the Private Eye, No. 1429, the UK arm of the Capital Group, Capital International Ltd has not paid corporation tax in the UK since 2009.[12]

Investments

Canada

United States

Oceania

Australia

Asia

China

Hong Kong

Philippines

Singapore

South Korea

Europe

Austria

Czech Republic

Denmark

France

Germany

Ireland

Luxembourg

Netherlands

Russia

Spain

Sweden

Switzerland

Greece

UK

References

  1. ↑ (May 4, 1927) New Investment Company. New York Times
  2. ↑ Ellis, Charles D. (2004). Wall Street People: True Stories of Today’s Masters and Moguls. New York: John Wiley & Sons. Pg. 193
  3. ↑ Ellis, Charles D. (2004) Capital: The Story of Long-Term Investment Excellence. Pg. 196
  4. ↑ Ellis, Charles D. (2004) Capital: The Story of Long-Term Investment Excellence. Pg 196
  5. ↑ Willis, Clint (September 1997). The Giant Nobody Knows. Mutual Funds Link unavailable
  6. ↑ Petruno, Tom (November 26, 1990). Capital Performance. The Los Angeles Times
  7. ↑ Greene, Andrew (January 10, 2003). Fund Titan: Jon B. Lovelace Jr., Empire Builder. Ignites
  8. ↑ Baden, Ben (March 5, 2010). In Past Decade, American Funds Created Most Wealth. U.S. News and World Report
  9. ↑ Kinnel, Russell (May 2014). Fantastic 48. Morningstar Fund Investor & Kinnel, Russel (June 2015). Fantastic 50. Morningstar FundInvestor
  10. ↑ Samuel, Juliet (October 16, 2014). Capital Group turns to wealth for International Expansion. Wall Street Journal
  11. ↑ Smith, Mark (December 1, 2014). Capital Group expands retail sales team. Financial Standard
  12. ↑ "Financial Husbandry". Private Eye. 1429.
  13. ↑ "Entertainment One — Entertainment One Shareholder Information". entertainmentone. Retrieved 2015-01-18.
  14. ↑ "DEF 14 — Official notification to shareholders of matters to be brought to a vote ("Proxy")". Amazon.com. April 12, 2013. Retrieved August 27, 2014.
  15. ↑ 2014 Proxy Statement, Page 26, http://www.astproxyportal.com/ast/amgen/document_1/2014%20Proxy%20Statement.pdf
  16. ↑ "Lockheed Martin Corporation (LMT) Ownership Summary". NASDAQ.com. Retrieved 2016-06-21.
  17. ↑ http://www.etnet.com.hk/www/eng/stocks/realtime/quote_ci_brief.php?code=1836
  18. ↑ http://investvine.com/german-us-firms-bank-on-philippines/
  19. ↑ http://www.comfortdelgro.com.sg/pdfs/Annual_Report/2011_en/Shareholding%20Statistics.pdf
  20. ↑ "Archived copy". Archived from the original on 2015-05-18. Retrieved 2015-05-09.
  21. ↑ http://www.stengg.com/investor-relations/shareholding-statistics
  22. ↑ Telecompaper, 21. June 2011, Telekom Austria Group shareholder cuts stake to under 10%
  23. ↑ CNB: Notification of a holding of a proportion of voting rights
  24. ↑ CNB: Notification of a holding of a proportion of voting rights
  25. ↑ TDC: Major shareholder announcement regarding TDC A/SNov 5, 2014
  26. ↑ http://www.dongenergy.com/en/investors/company-announcements/company-announcement-detail?omxid=1503554
  27. ↑ Schneider Electric 2011 Annual Report
  28. ↑ Süddeutsche Zeitung, Oktober 2008, Wer gehört zu wem: Bayer AG
  29. ↑ Bijou Brigitte AG, 29. December 2009, Pflichtmitteilung Archived April 27, 2009, at the Wayback Machine.
  30. ↑ Süddeutsche Zeitung, Oktober 2008, Wer gehört zu wem: Continental AG
  31. ↑ Deutsche Bank - Shareholder Structure Archived March 14, 2012, at the Wayback Machine.
  32. ↑ Beteiligung Fraport AG, Stand Mai 2007, Mitteilung Fraport AG
  33. ↑ Süddeutsche Zeitung, Oktober 2008, Wer gehört zu wem: GEA Group AG
  34. ↑ Süddeutsche Zeitung, Oktober 2008, Wer gehört zu wem: Infineon Technologies AG
  35. ↑ SAP AG, 04. November 2008, Beteiligungen der SAP AG
  36. ↑ Siemens AG, August 2009, Veröffentlichung einer Stimmrechtsmitteilung Archived November 10, 2009, at the Wayback Machine.
  37. ↑ Süddeutsche Zeitung, Oktober 2008, Wer gehört zu wem: Volkswagen AG
  38. ↑ http://corporate.ryanair.com/docs/corp/investor/2014/final_annual_report_2014.pdf
  39. ↑ http://corporate.arcelormittal.com/news-and-media/press-releases/2016/apr/18-04-2016
  40. ↑ De Volkskrant, October 2010, Profiel Akzo Nobel
  41. ↑ De Volkskrant, October 2010, Profiel ASML
  42. ↑ De Volkskrant, October 2010, Profiel KPN
  43. ↑ Geberit AG, 13. März 2008, Offenlegung von Beteiligungen Archived October 8, 2010, at the Wayback Machine.
  44. ↑ mobilezne holding ag, 14. September 2011, Offenlegung von Beteiligungen
  45. ↑ "Archived copy". Archived from the original on 2014-09-10. Retrieved 2014-09-10.
  46. ↑ http://www.nasdaq.com/symbol/lbtya/institutional-holdings
  47. ↑ http://www.investegate.co.uk/lonmin-plc--lmi-/rns/holding-s--in-company/201508251330020251X
  48. ↑ http://www.digitallook.com/cgi-bin/dlmedia/security.cgi?csi=10088

External links

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