American Funds Distributors

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American Funds Distributors
Private
IndustryFinancial services
Founded1931
FounderJonathan Bell Lovelace
Headquarters,
ProductsMutual fund, target date retirement funds, 529 college savings funds
AUMUS$ $1.3 trillion
(December 31, 2015)
ParentCapital Group Companies
Websiteamericanfunds.com

American Funds Distributors, LLC sells a large variety of mutual funds. Its funds are sold primarily through financial advisors and intermediaries. It is the third largest mutual fund family, with more than US $1.3 trillion in assets under management. American Funds is a subsidiary of Capital Group.

Investment philosophy[edit]

American Funds has been recognized for its high rate of manager ownership, meaning many of the funds’ managers invest their own money in the funds they manage.[1] The firm also uses a multiple-manager approach instead of relying on a single fund manager for almost all its offerings. Each portfolio manager, plus the pool of research analysts who contribute to the fund, is assigned a portion of the overall assets within a fund to manage independently. Portfolio managers use their experience and knowledge to focus on their highest conviction ideas for the fund. This investment process allows for a diverse group to bring together complementary investment approaches.

Funds[edit]

American Funds is known in the mutual fund industry for its lower-than-average fees. On average, its management fees were in the lowest quintile 70% of the time, based on the 20-year period ending December 31, 2014, versus comparable Lipper categories. According to Morningstar, the American Funds family’s fees, on average, are in the cheapest quintile relative to other families.[2]

Products include more than 40 American Funds, the American Funds Target Date Retirement Series,® CollegeAmerica, a 529 college savings plans sponsored by Virginia529,℠ Coverdell Education Savings Accounts, the American Funds Insurance Series® variable annuity funds, and other retirement plan solutions.

American Funds manages more than 54 million investor accounts, including more than 26 million IRAs, more than 2 million 401(k)s and nearly 6 million CollegeAmerica 529 accounts. CollegeAmerica is currently the largest 529 savings plan in the U.S. (as of 2015).[3]

American Funds holds an “A” rating for overall stewardship from Morningstar, with “A” ratings for fees, corporate culture and fund manager incentives.[4]

References[edit]

  1. ^ Quinlan, Casey (November 8, 2013). Should Managers Invest in Their Own Mutual Funds? U.S. News & World Report
  2. ^ (June 26, 2015). 2015 Morningstar U.S. Mutual Fund Industry Stewardship Survey. Morningstar (page 20)
  3. ^ Skinner, Liz (September 6, 2015). The latest 529 college savings plan data. Investment News
  4. ^ Yang, Janet (October 1, 2015). Capital Group Stays at the Top Through Hard Work. Morningstar.com

External links[edit]