The Capital Group Companies, founded in 1931, has built a business being a steady Eddy for its clients. As a rule, the investment firm doesn't advertise or grant many interviews and it prides itself on providing consistent high-level service, believing that investment decisions should not be taken lightly. As part of its operations, The Capital Group Companies operates Capital Research and Management. The unit manages The American Funds, a family of more than 30 mutual funds that ranks among the largest groups of mutual funds by assets in the US. Altogether, The Capital Group Companies boasts approximately $1 trillion in assets under management.
The company's Capital Guardian unit manage assets for pension funds and other institutional investors in North America. Its Capital International business does the same globally. Capital Group Private Client Services provides personal investment management and planning for high-net-worth individuals and their families, trusts, endowments, and foundations. Capital Bank and Trust performs recordkeeping for small-company retirement plans in the US, while Capital International Private Equity Funds makes direct investments in companies in a range of industries in Europe, Asia, and emerging markets. Other units offer investment funds in Canada and Europe and investment trusts in Japan.
Capital Group, which mainly sells its products through financial advisors and other third parties, has more than 20 offices worldwide.
Its mutual fund styles include growth, growth and income, equity-income, balanced, bond, tax-exempt bond, and money market. The firm is not an activist investor, but as a big institutional shareholder it can impact the stock prices of its holdings by buying or selling large blocks of shares.
Despite its philosophy of staying under the radar and making stable, long-term investments, Capital Group was not totally unscathed by troubles that have rocked the financial services industry in recent years. After stock market declines caused the company's assets under management to fall -- in turn affecting management fees -- Capital Group announced layoffs of nearly 15% of its total workforce in 2009; no portfolio managers or analysts were affected. The company's assets under management rebounded when the markets showed signs of recovery in 2010. – less