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.
The Commodity Futures Trading Commission has charged CapitalStreet Financial LLC, a foreign exchange trading firm in Denver, N.C., with operating a Ponzi scheme in which at least 69 customers were allegedly bilked out of an estimated $1.3 million.
Investors in the Schwab Charitable Fund national donor-advised offering now have more investment choices.
There is a disconnect between how some of the largest mutual fund firms' brands are perceived by many advisers and the actual performance of the funds, according to a recent survey conducted by Cogent Research LLC of Cambridge, Mass.
Low-quality, beaten-down stocks played a role in driving many stock fund groups to the top percentile of performance in the most recent market rally, according to an analysis published by Morningstar Inc.
City National Corp., the bank holding company that owns Convergent Capital Management LLC, has agreed to buy a majority interest in Lee Munder Capital Group, a firm with more than $3 billion in assets under management.
Hedge funds averaged positive returns in May after posting the highest return in more than five years in April, according to estimates released yesterday by HedgeFund.net.
City National Corp., a Beverly Hills, Calif.-based bank holding company that owns Convergent Capital Management LLC, has agreed to buy a majority interest in Lee Munder Capital Group, a firm with more than $3 billion of assets under management.
The reductions are being made across all companies and departments among the firm’s 9,000 employees, said Chuck Freadhoff, spokesman for American Funds.
Two-thirds of investors believe that target date funds need to be combined with other funds to achieve a proper mix for their retirement portfolios, a white paper released yesterday by Janus Capital Group Inc. of Denver suggests.
Fidelity Investments had the most internally managed active-domestic-equity assets for U.S. institutional tax-exempt assets clients last year.
With the battered performance of its bond funds creating a financial nightmare for investors, OppenheimerFunds Inc. is fighting to rebuild its image and win back the confidence of financial advisers — a job that will likely take years, industry experts said.
Executives of Neuberger Berman Group LLC, now running the $155 billion money manager as an independent firm, plan to share some of their institutional-only investment strategies with investment advisers and individuals for the first time.
These are difficult times for the mutual fund industry, which makes consideration of publicly traded fund companies as investments particularly nerve-racking.
Mutual fund groups groups must adjust to a new, potentially expensive distribution landscape, according to members of a round-table panel of fund executives, financial advisers and industry experts.
Janus Capital Group Inc. today reported a first-quarter net income of $2.7 million, or $0.02 per share, representing a 65% decline from $7.8 million in income for the fourth quarter of 2008.
