Office address: 53rd Floor, 333 South Hope Street, Los Angeles, CA 90071
Website: www.capitalgroup.com
Year established: 1931
Company type: financial sevices
Employees: 9,000+
Expertise: sub-advisory services to mutual funds, equity, fixed income, multi-asset solutions, ESG, retirement planning, global markets, investment research, wealth management, active management, financial planning, investment management
Parent company: N/A
Key people: Mike Gitlin (CEO), Noriko Chen (portfolio manager), Canise Arredondo (CFO), Rob Klausner (COO), Matt O'Connor (head of NACG), Martin Romo (CIO), Jody Jonsson (vice chair)
Financing status: N/A
Capital Group, based in Los Angeles, is a global investment firm managing over $2.7 trillion in assets as of June 2024. With more than 9,000 employees in 32 offices worldwide, they focus on delivering strong, long-term results for investors through research-driven strategies. For over 93 years, they have helped individuals and institutions grow their financial futures.
Capital Group was founded in 1931 by Jonathan Bell Lovelace in Los Angeles during the Great Depression to help investors navigate challenging economic times. In 1943, the firm opened a New York office but moved their headquarters back to Los Angeles a year later. The firm introduced The Capital System in 1958, a unique approach to portfolio management.
By 1962, Capital Group expanded internationally, opening its first office outside the US in Geneva, followed by offices in London, Tokyo, Hong Kong, and Singapore. In 1983, they launched a dedicated service center for American Funds shareholders in California.
The company celebrated its 90th anniversary in 2021 and entered the ETF market in 2022 with its first actively managed funds.
Capital Group offers a broad range of investment solutions tailored to various client needs:
Capital Group's services are structured around three independent investment groups, each making its own equity and proxy voting decisions. Their fixed income professionals manage research and investments across the organization, ensuring comprehensive coverage in both equity and fixed income sectors.
Capital Group promotes a collaborative work environment where diverse perspectives are valued and supported. They are committed to equal opportunity employment and offer competitive compensation and benefits that prioritize employee well-being. Their focus on a positive work-life balance is reflected in a variety of programs, including:
The organization values diversity as a cornerstone of its business, actively seeking different perspectives and experiences to build inclusive teams. The company is committed to fostering a workplace where every voice is heard, believing that inclusion leads to better outcomes. This focus on belonging drives their diversity, equity, and inclusion efforts, which include:
Capital Group integrates environmental, social, and governance (ESG) issues into its investment process through a three-part approach: research frameworks, monitoring, and engagement. They have developed over 25 sector-specific frameworks and use over 50 data sources to identify ESG risks.
Long-standing relationships with company management allow for ongoing dialogue about managing ESG risks and opportunities, supporting efforts to address key issues, including:
In terms of sustainability, Capital Group invests in people, communities, and the environment through its business practices. Their efforts include expanding renewable energy, improving supplier relationships, and adhering to climate-related financial disclosures. They aim to empower employees to support meaningful causes and work toward greater access to financial services for all.
Mike Gitlin serves as the company CEO and president, overseeing investment strategies for clients worldwide. He previously held leadership roles at T. Rowe Price, Citi, and Credit Suisse Asset Management. Gitlin earned his bachelor’s degree from Colgate University and started his career as a trader at George Weiss & Associates.
The following are key leaders at Capital Group, each playing vital role in the company’s operations:
Capital Group recently introduced the Target Date Retirement Blend Series, combining their active management with passive strategies from BlackRock and State Street. This new series offers a diversified solution for retirement planning, appealing to a broader range of plan sponsors. By blending active and passive strategies, it aims to meet various preferences, from cost-conscious options to those seeking higher returns.
Capital Group recently partnered with Orion, offering new opportunities for financial advisors through this collaboration. These portfolios, available through Orion’s platforms, are designed to help advisors meet client goals with dynamic asset allocation. This collaboration reflects Capital Group’s commitment to offering innovative, actively managed investment solutions while expanding its presence in the growing ETF market.
For your three-day weekend reading, here's a recap of some of the adviser fintech news you may have missed.
Survey finds that 63% think ESG risks are best handled when fund managers select a portfolio to manage opportunities and risks.
The acquisition of $370 million Union Financial Advisors, based in Tulsa, marks Merit's sixth deal since taking private equity capital two years ago.
American Funds and Inspire Investing announce fee cuts Monday, in the wake of Vanguard's announcement Friday.
Many planners support the strategic intiatives, such as an awareness campaign and diversity effort, the higher fee will fund. Others caution the more expensive mark could cause some pain.
Keith Haller, Cory Shepard, who set up shop in Kirkland, Washington, are joining the firm’s independent adviser channel.
Target Date Plus helps participants to determine a mix of target-date funds that is more suited to their particular needs.
The three new funds were created in response to clients who wanted access to the firm’s strategies via ETFs, says Neuberger CIO Hari Ramanan.
Tedstrom Wealth and I.M. Wealth Care are both in the Denver Area and add $381 million in assets to Merit.
Both WA Asset Management and the firm it acquired, Clark Financial Advisors, are based in Birmingham, Alabama.
The company's asset management unit already supervises a total of $350 billion in assets in defined-benefit and defined-contribution accounts and will utilize the acquisition to provide new digital tools to customers.
The $1.5 trillion investment manager is designing a full-scale ETF platform, and plans to launch its first ETFs this year.
Private equity firms Clearlake Capital Group and Motive Partners announced the acquisition of Beta+ this week and plan to use the tech to enhance wealth management firms they already own.
The firm's applications related to the DoubleLine Opportunistic Bond ETF and the DoubleLine Shiller CAPE U.S. Equities ETF have been granted 'effective immediately.'
Last year’s attempt to raise taxes on the wealthy has catalyzed conversations between advisers and clients about tax strategies this season.
