Capital Group Companies
|Founder||Jonathan Bell Lovelace|
|Headquarters||Los Angeles, California, United States|
|Capital Group Management Committee:
Phil de Toledo
|Products||Mutual fund, Private wealth management, Private equity investing, Retirement plan services|
|AUM|| 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
Capital Research and Management Company
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.
- 1 Investment Philosophy
- 2 History
- 3 Accolades
- 4 Offices
- 5 Investments
- 5.1 Canada
- 5.2 United States
- 5.3 Brazil
- 5.4 Oceania
- 5.5 Asia
- 5.6 Europe
- 6 References
- 7 External links
Capital Group's investment philosophy, based on bottom-up portfolio management and rigorous 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 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.
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. 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.
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.
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.
Many of the firm’s funds were also included in Morningstar’s “Fantastic 50” in 2015 and its “Fantastic 48” in 2014.
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. Its Asia offices include Beijing, Hong Kong, Mumbai, Singapore and Tokyo. Capital Group also has a growing presence in Sydney and a private equity office in São Paulo.
- Amazon.com, Inc. (6.2%)
- Amgen Inc. (10.24%)
- Lockheed Martin (10.39%)
- Square (12.3%)
- BYD Co LTD. (9.92%)
- Naver Corporation (5.2%)
- Bayer AG (10.018%)
- Bijou Brigitte (3.0025%)
- Böwe Systec AG (5.10%)
- Commerzbank AG
- Continental AG (5.10%)
- Deutsche Bank (3.08%)
- Fraport AG (5.07%)
- GEA Group AG (4.985%)
- Infineon Technologies AG (4.10%)
- Linde AG (about 10% share)
- SAP AG (3.19%)
- Siemens AG (3.02%)
- Volkswagen AG (4.097% participation, 5.6% voting)
- Rambler (3.29%)
- Credit Suisse (4.91%)
- Geberit AG (5.0518%)
- Mobilezone Holding AG (4.99%)
- UBS (3.01%)
- Ellaktor (5.70%)
- Eurobank Ergasias (13.0132%)
- Fourlis Holding (9.86%)
- Jumbo Stores (9.00%)
- OPAP (11.5439%)
- Titan Cement (5.00%)
- Legal & General (8.06%)
- Liberty Global (6.49%)
- Lonmin (8.01%)
- Royal Dutch Shell (9.85%)
- SSE (7.84%)
- (May 4, 1927) New Investment Company. New York Times
- Ellis, Charles D. (2004). Wall Street People: True Stories of Today’s Masters and Moguls. New York: John Wiley & Sons. Pg. 193
- Ellis, Charles D. (2004) Capital: The Story of Long-Term Investment Excellence. Pg. 196
- Ellis, Charles D. (2004) Capital: The Story of Long-Term Investment Excellence. Pg 196
- Willis, Clint (September 1997). The Giant Nobody Knows. Mutual Funds Link unavailable
- Petruno, Tom (November 26, 1990). Capital Performance. The Los Angeles Times
- Greene, Andrew (January 10, 2003). Fund Titan: Jon B. Lovelace Jr., Empire Builder. Ignites
- Baden, Ben (March 5, 2010). In Past Decade, American Funds Created Most Wealth. U.S. News and World Report
- Kinnel, Russell (May 2014). Fantastic 48. Morningstar Fund Investor & Kinnel, Russel (June 2015). Fantastic 50. Morningstar FundInvestor
- Samuel, Juliet (October 16, 2014). Capital Group turns to wealth for International Expansion. Wall Street Journal
- Smith, Mark (December 1, 2014). Capital Group expands retail sales team. Financial Standard
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- "DEF 14 — Official notification to shareholders of matters to be brought to a vote ("Proxy")". Amazon.com. April 12, 2013. Retrieved August 27, 2014.
- 2014 Proxy Statement, Page 26, http://www.astproxyportal.com/ast/amgen/document_1/2014%20Proxy%20Statement.pdf
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- Telecompaper, 21. June 2011, Telekom Austria Group shareholder cuts stake to under 10%
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- "CNB: Notification of a holding of a proportion of voting rights". Retrieved 20 April 2017.
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- "Major shareholder announcement". Retrieved 20 April 2017.
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- Süddeutsche Zeitung, Oktober 2008, Wer gehört zu wem: Bayer AG
- Bijou Brigitte AG, 29. December 2009, Pflichtmitteilung Archived April 27, 2009, at the Wayback Machine.
- Süddeutsche Zeitung, Oktober 2008, Wer gehört zu wem: Continental AG
- Deutsche Bank - Shareholder Structure Archived March 14, 2012, at the Wayback Machine.
- Beteiligung Fraport AG, Stand Mai 2007, Mitteilung Fraport AG
- Süddeutsche Zeitung, Oktober 2008, Wer gehört zu wem: GEA Group AG
- Süddeutsche Zeitung, Oktober 2008, Wer gehört zu wem: Infineon Technologies AG
- SAP AG, 04. November 2008, Beteiligungen der SAP AG
- Siemens AG, August 2009, Veröffentlichung einer Stimmrechtsmitteilung Archived November 10, 2009, at the Wayback Machine.
- Süddeutsche Zeitung, Oktober 2008, Wer gehört zu wem: Volkswagen AG
- "ArcelorMittal announces Capital Group shareholding notification". Retrieved 20 April 2017.
- De Volkskrant, October 2010, Profiel Akzo Nobel
- De Volkskrant, October 2010, Profiel ASML
- De Volkskrant, October 2010, Profiel KPN
- Credit Suisse, 28.01.2017, Significant Shareholders
- Geberit AG, 13. März 2008, Offenlegung von Beteiligungen Archived October 8, 2010, at the Wayback Machine.
- mobilezne holding ag, 14. September 2011, Offenlegung von Beteiligungen
- UBS, 16 November 2016,, Significant Shareholders
- "Archived copy". Archived from the original on 2014-09-10. Retrieved 2014-09-10.
- "Liberty Global plc (LBTYA) Institutional Ownership & Holdings". Retrieved 20 April 2017.
- "FE Investegate -Lonmin PLC Announcements - Lonmin PLC: Holding(s) in Company". Retrieved 20 April 2017.
- "SSE Share price - Digitallook.com". Retrieved 20 April 2017.