With over 90 years of experience in this field, Capital Group American funds are trying to help people worldwide stabilize their future financially. The Capital Group has always tried to be committed to the objective with which they started this initiative, providing benefit to the community with their investing approach.
The Capital Group encourages people not only to see dreams but also to fulfill them. They firmly believe that their clients’ goals have powered them to reach this level of success. Initially, Capital Group was limiting its investment projects in America, but today, they are a well-known investing firm and are engaged in projects throughout the world.
The Emergence of the Capital Group American Funds
The Capital Group American Funds started when the world plunged into the era of the Dust Bowl and the Great Depression. Jonathan Bell Lovelace, a pioneer in the field of investment, came up with this initiative. This investment firm came into being in 1930 in Los Angeles. Let us analyze their progress with every passing decade.
Significant Milestones Achieved Over the Decades
1930-40
By 1934, this firm assumed the management of ICA [the parent firm of Capital Group American Funds, the Investment Company of America, and started concentrating on mutual funds.
By 1943, they started operating from their office in New York. It was during this time that the Investment Company of America decided upon
moving their headquarters in Los Angeles.
1950-60
In the new decade of 1950, the Investment Company of America had made an important decision. They had planned that they would sell American funds only through professionals in finance. They were hardcore believers in the value of good advice.
In 1953 the Investment Company of America invested in Royal Dutch Petroleum. They succeeded in setting a benchmark as one of the first firms to invest outside America despite being based in the United States of America. By 1958, they could successfully establish their capital system approach to portfolio management.
1960-70
In 1962, they set another milestone by opening an office in Geneva, their first office away from the United States. Since they had extended the investments towards Geneva, they also needed to set up the stock market indices. So in 1968, they started with their first set of indices for the stock market for non-U.S market.
1970-80
Then they kept on emerging and opened offices in London, Tokyo, Hong Kong, and Singapore. The most remarkable achievement is the launching of a growth fund for emerging markets. This was the first of its kind.
1980-90
Finally, in 1990, the Investment Company of America decided to segregate the American funds after they acquired their one-millionth shareholder.
1990-2000
It was then that American Funds came into existence, its parent company being the Investment Company of America. Also, in 2000, the Capital Group American Funds started their services of offering investment management to Canadian individuals.
2000-2010
Capital Group American Funds decided to expand in the retirement plan market in the United States. Also, it was ranked the best in providing efficient plans in the field of college savings. However, by the end of this decade, they opened their offices in South Asia- in Mumbai in India and Beijing in China.
2010-2020
They extended their chain and opened an office in Australia, in Sydney. In 2012, Capital Group American Funds improvised their Portfolio series by introducing funds with eight objectives. By 2016, they opened their office in Zurich and Milan, Madrid, and Frankfort.
After achieving success in their portfolio series, Capital Group American Funds introduced several bond funds. These bond funds concentrated on new capital ideas.
They also imparted investment knowledge to the interested intermediaries. They also successfully launched two new Capital Group American Funds in Luxemburg.
Achievements of Capital Group American Funds
Due to the outstanding performance and services in their field, in 2018, Capital Group American Funds were ranked among the top 40 prominent brands in the asset management industry in Europe.
They also attained the award in Human Rights Campaign [HRC] by scoring 100% for the second time for efficient inclusion of practices and policies in their workplace in the year 2019.
The Distinctive Investment Approaches
Capital Group American Funds have reached their global position due to their unique way of business. These approaches are as follows:
Strong Decision-making Body
Capital Group American Funds have always emphasized passion and not monetary benefit. Of course, a profit motive drives them, but they like to keep the dreams of their customers first.
They want their customers to dream and like to fund their dream into reality. Since their objective is to fulfill dreams, they have a robust decision-making body that willingly takes risks.
Due to this unique feature, not only are they so successful as a firm but also ranked highly in the human rights fields.
Multi-management Structure
Capital Group American Funds prefer to segregate portfolios into various parts, and a manager looks after each. These managers come from diverse backgrounds, approaches, and styles.
As a result, they efficiently represent their specific approaches. Also, they look into the minutest detail of the portfolios they inspect.
Respects Diverse Perspectives
The firm policy is such that if there is no unanimous decision, the firm will not disgrace anyone.
On the contrary, they tend to respect the diverse perspectives of every individual and try to support as many of their clients as they can. This makes their work environment very pleasing.
Promotes Independent Thinking
The managers might share the same insight after their collaboration, but each manager takes individual decisions according to their perception.
They look into various portfolios, and all the creative ideas are stacked-up in the portfolios. With the help of this approach, the manager can think independently and will not be forced to come to any decision.
Moreover, the portfolio will be selected so that the idea fairs well in any market situation, whether inflation or deflation.
Research-driven Investment
Since the beginning, Capital Group American Funds have always emphasized research-driven investment. When the firm is about to decide whether they should invest in a particular idea, they always do extensive research on the various factors connected to the investment project.
With the help of this activity, they get a clear idea about the promising nature of the project, but they also tend to understand the project in a much better way.
Bonding with Customers
Capital Group American Funds employees do not treat their clients as mere customers. They try to bond with them.
They tend to make their customers believe that they can do it and achieve their dreams, no matter how hard it is.
They try to make their customers believe in themselves. The employees exhibit a friendly bond with their clients and customers.
Emphasize on Time
The multi-management system of Capital Group American Funds ensures long-term benefits to their customers.
However, the Capital Group American Funds do not emphasize the long-term plans to attain success. Instead, they try to make their customers attain success as soon as possible.
Believe in Long-term Investment Success.
Capital Group American Funds believes in investing aligns but for the long term. Therefore, the compensation stricture is designed so that it also reinforces long-term investment schemes.
How Do Capital Group American Funds Manage Their Clients’ Money
Capital Group American Funds is not a mere profit-making organization. They try to do their bit in the form of social work. They like to invest their client’s money in the following areas:
Up-gradation of Environment
Capital Group American Funds believe that the world is as much of the other living organisms as it is of the humans. A part of the funds goes to the betterment of the environment.
Whenever the afforestation activity occurs, or any forest restoration procedure takes place, it involves money. A part of the funds directly goes under the programs that help reforestation.
Improvisation of Communities
Various tribal and backward communities are yet to be modernized. Though we live in the same world, there is a vast difference in how these communities continue to live in a primitive manner.
Capital Group American Funds promote the well-being of these communities by donating a part of their fund under the improvisation of their communities.
Investing in Employees
Capital Group American Funds are not only concerned about its clients but also treat all its employees with dignity and respect. If any of their employees seem to undergo any problem, the firm is always ready to intervene.
Likewise, if any employee is undergoing a financial crunch, Capital Group American Funds always try to stand by them.
Investing on Behalf of Clients
Often, it is observed that clients come and ask for suggestions since they do not understand where to invest.
Since Capital Group American Funds believe in strengthening its bond with its customers, the firm offers options where they will be investing on behalf of their customers.
Support UN’s Global Compact
Capital Group American Funds support UN Global Compact since they have been participating in this for now.
The firm’s impact is assessed by the Sustainable Development Goals [SDGs]. The goals which are observed in the firm are:
Gender Equality
Capital Group American Funds support gender equality and hence do not discriminate among women and men in the office. Both are seen and treated equally.
The ratio of men and women in hiring does not show any disparity. Also, women hold prominent positions in the firm, just like men.
Reducing Inequalities
No one is favored in the workplace, irrespective of their social, economic, and cultural background. Since the company has offices worldwide now, they have a very multi-diverse workforce in terms of ethnicity, which is much appreciable.
Eco-friendly Production and Consumption
Since the company vouch for saving the planet, they have shifted to the process of eco-friendly production and consumption.
This means that they are willing to consume bio-degradable products and do not cause any harm to the environment.
Also, they focus on using renewable energy sources since that is an environmental-friendly option. Therefore, they are also inclining towards the eco-friendly procedures of production.
Action Against Climate Change
They have been supporting and taking action against climate change. They are trying to replace their consumption of non-renewable sources with renewable sources of energy.
Also, they are taking the initiative in regenerating forests. They are vouching for sustainable development.
Respectable work culture
Apart from taking a strong stand in favor of the environment, the company also notice employees’ behaviors with each other.
Unethical activities are always avoided since the firm does not promote a toxic work culture. Things like bullying or shaming are strictly looked after. If any employee is engaged in any unethical malpractice within the workplace, strict actions will be taken against them.
Concept of Global Citizenship
The company identifies itself as global citizens because, as they have offices in various parts of the world, they are engaging themselves towards the betterment of every society.
They are trying to contribute to the reforestation programs, community well-being, and promoting education by rewarding good students with a poor economic background.
Since they are dedicating their selfless effort towards the people and the environment of various parts of the world, they are tagging themselves as global citizens.
Bottom Line
Capital Group American Funds are not run by profits but by the dreams and passions of its clients.
Apart from being a business giant in the investment sector, with a worldwide network, this firm is equally dedicated to the improvisation of the environment and the backward societies.
Also, this firm prioritizes maintaining a healthy work environment where all its employees are happy and respect each other.