American Funds is a family of 33 mutual funds managed by Capital Research and Management, part of the Capital Group Companies. Capital Research and Management serves as the investment advisor to the 33 American Funds. The company does not advertise and shuns publicity, preferring to rely on brokers' recommendations to their clients. With over $1 trillion in assets under management (as of November 2010), American Funds is the third largest behind Fidelity and The Vanguard Group.
In February 2007, a California appeals court said the attorney general could sue American Funds for fraud stemming from allegations that the fund company did not inform investors that it was paying kickbacks to brokerage firms to entice brokers to recommend the funds to their clients. A lower court had ruled that the state lacked jurisdiction to file suit. The California Attorney General later dropped the suit in February 2008.
- The Capital Group Companies from the Streetinsider.com
- Ellis, Charles D. (2004). Capital: The Story of Long-Term Investment Excellence. John Wiley & Sons. p. 217. ISBN 0-471-56704-3.
Avoiding...publicity or recognition is deeply entrenched in Capital's culture and is important to the organization.
- The California Attorney General
2. Ric Edelman, The Lies About Money pg. 160 [clarification needed]