|Founder||Jonathan Bell Lovelace|
|Products||Sub-advisory services to mutual funds and other pooled investment vehicles|
|Revenue||$7.6 Billion (2020)|
|AUM||$2.38 trillion (December 2020)|
Number of employees
|Subsidiaries||American Funds, Capital Research and Management Company, Capital Bank and Trust Company, FSB|
Capital Group is an American financial services company. It ranks among the world's oldest and largest investment management organizations, with over $2 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 focused on active management, including more than 40 mutual funds through its subsidiary, American Funds Distributors, 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.
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.[ citation needed ]
In 1933, Lovelace's firm took over management of The Investment Company of America, which he had launched at E.E. MacCrone in 1927. [ citation needed ]For the next 20 years, his firm enjoyed modest success. As mutual funds gained in popularity in the 1950s, Capital's roster of mutual funds grew.
The International Resources Fund, established in 1954,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.
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.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.
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.
Former British PM Theresa May's husband Philip May has worked as a relationship manager for the Capital Group.
As of 2019, Capital Group held 5% of BAE Systems,9% of British American Tobacco and 15.28% of ASML Holding.
The chairman and chief executive is Tim Armour,who took over in 2015 after the death of James Rothenberg.
Funds typically have between 3 and 13 managers; in addition to financial research, the managers may do on-the-ground due diligence, and in 2018 logged 12,400 to facilities such as factories.It has 3 independent divisions focused on equities: Capital World Investors, Capital Research Global Investors and Capital International Investors, as well as 1 focused on bonds, Capital Fixed Income Investors.
As of 2019, it had 36 funds.Growth Fund of America, founded in 1973, was the largest actively-managed fund as of 2020 with around $150 billion.
As of 2019, the company is owned by 450 partners.
Capital Group employs more than 7,500 associates worldwide. North American locations include Atlanta, Los Angeles, San Antonio, Indianapolis, 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.Its Asia offices include Beijing, Hong Kong, Mumbai, Singapore and Tokyo. Capital Group also has a growing presence in Sydney.
Passive management is an investing strategy that tracks a market-weighted index or portfolio. Passive management is most common on the equity market, where index funds track a stock market index, but it is becoming more common in other investment types, including bonds, commodities and hedge funds.
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Fidelity Investments Inc., commonly referred to as Fidelity, earlier as Fidelity Management & Research or FMR, is an American multinational financial services corporation based in Boston, Massachusetts. The company was established in 1946 and is one of the largest asset managers in the world with $4.9 trillion in assets under management as of June 2020 and a combined total customer asset value number of $8.3 trillion. Fidelity Investments operates a brokerage firm, manages a large family of mutual funds, provides fund distribution and investment advice, retirement services, index funds, wealth management, cryptocurrency, securities execution and clearance, asset custody, and life insurance.
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Franklin Resources Inc. is an American multinational holding company that, together with its subsidiaries, is referred to as Franklin Templeton; it is a global investment firm founded in New York City in 1947 as Franklin Distributors, Inc. It is listed on the New York Stock Exchange under the ticker symbol BEN, in honor of Benjamin Franklin, for whom the company is named, and who was admired by founder Rupert Johnson, Sr. In 1973 the company's headquarters moved from New York to San Mateo, California. As of October 12, 2020, Franklin Templeton held US$1.4 trillion in assets under management (AUM) on behalf of private, professional and institutional investors.
Morningstar, Inc. (Nasdaq: MORN）is an American financial services firm headquartered in Chicago, Illinois. It provides an array of investment research and investment management services. Joe Mansueto founded Morningstar in 1984.
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Jonathan Bell Lovelace (1895–1979) was the founder of Capital Group Companies.
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Harris Associates L.P. is a Chicago-based investment company that manages $104 billion in assets as of December 31, 2020. Harris manages long-only U.S. equity, international equity, and global equity strategies which are offered through its mutual fund company, the Oakmark Funds, and other types of vehicles. Harris is wholly owned by Natixis Investment Managers, a French financial services firm that is principally owned by BPCE, France’s second largest banking group. Harris Associates retains full control of investment decisions, investment philosophy, and day-to-day operations.
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