American Funds 

 

American Funds® is a broadly diversified family of 33 mutual funds—a portfolio for every investor. With more than $900 billion investments and over 50 million shareholder accounts, American Funds is the nation's second largest mutual fund families.

Capital Research and Management CompanySM, the investment adviser to American Funds, manages equity assets through two investment divisions that make investment decisions independently.

More than 50 years ago, American Funds developed a unique approach to managing investments that blends teamwork with individual accountability; the multiple portfolio counselor system. It has provided a sustainable method of achieving fund objectives.

Features

Assets of each mutual fund are divided into smaller, more manageable portions. Each portion is managed by a portfolio counselor who operates autonomously, investing his or her portion as though it were an entire mutual fund—subject to fund objectives and overall guidelines.

A group of research analysts typically manages one portion (usually about 20% - 30% of assets), bringing additional expertise directly to bear on fund results.

Benefits

  • Diversity—because each investment professional offers unique expertise and has different convictions, this approach magnifies the benefits of diversification inherent in mutual fund investing.

  • Consistency—the selection of investment professionals with different investment professionals with different investment styles has tended to smooth out short-term peaks and valleys and has delivered consistent long-term results.

  • Continuity—when one counselor retires or changes responsibilities, only a portion of portfolio control changes hands. Smooth, gradual transitions help the fund's investment approach remain consistent.

  • Manageability—Portfolio counselors and analysts can focus on the companies they really like and understand, and they can act independently on their best ideas, with no need for consensus. What's more, additional counselors can be added to funds as assets grow.

Fundamental Research

American Funds commits substantial resources to global research.  As part of that in-depth research in 2010, American Funds portfolio counselors and analysts met with executives from companies based in more than 50 countries.

  • traveling millions of miles meeting executives, industry specialists, economists and government officials
  • visiting with companies before—and after—investing
  • meeting a company's suppliers, bankers, customers and competitors

American Funds have more than 200 investment professionals — who speak more than two dozen languages — traveling around the world. Not all firms do their own research, and few have American Funds’ longevity in following companies and industries. Continuity is crucial to long-term perspective. It’s not uncommon, for example, for their investment analysts to have known several successive CEOs at each of the companies they cover. When you know a company that well, there’s a greater depth to the questions you ask, the observations you make and your conviction to buy, sell or pass.

A Commitment to Low Operating Expenses

Many investors look only at the initial cost when selecting an investment. However, ongoing expenses can have an even greater effect on long-term returns. At American Funds, they are committed to providing exceptional services at a reasonable cost. We strive to keep fund management fees low so that operating expenses remain competitive.

The above information was provided by American Funds. For further information visit www.americanfunds.com.

Mutual funds are available through Northwestern Mutual Investment Services, LLC.

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