<a href="#!/page/3/1">**1. Taking a long-term view**</a> Our philosophy is based on avoiding short-term thinking <a href="#!/page/3/2">**2. A distinctive way of managing money**</a> The Capital System℠ combines independent high-conviction decision-making with the diversity that comes from multiple perspectives <a href="#!/page/3/3">**3. Deep, fundamental research**</a> Our conviction is developed from first-hand research and experience <a href="#!/page/3/5">**4. The power of partnerships**</a> We bring our capabilities to your strategic priorities
Private ownership. Our private ownership and strong balance sheet afford us the ability to maintain a long-term view. We avoid the quarterly earnings pressures that can constrain publicly-traded companies and lead to short-term thinking. It gives us the freedom to put client needs first and make strategic decisions that benefit our clients rather than outside shareholders.
Compensation basis (years)
Portfolio manager tenure2
Analyst tenure2
1. Increasing weight is placed on each successive measurement period to encourage a long-term investment approach 2. As at 31 December 2020. Average years for macroeconomics is for analysts across all asset classes. Source: Capital Group
Focus on active investing. Our investment process rewards portfolio managers based on their ability to produce attractive long-term returns for our investors. The level of assets they manage is not a factor, which encourages collaboration and idea sharing.
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Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. The information provided is not intended to be comprehensive or to provide advice.
Scale and scope. We have one of the largest global research teams, with over 400 investment professionals across equity and fixed income, speaking more than 40 languages. Few firms can match the scale and scope of our proprietary research effort, with decisions based on our own first-hand research, which is never sold or made available to third parties.
Fundamental research. We commit significant resources to determining each company’s true value. In 2020, our search for an information advantage saw us attend more than 12,000 face-to-face meetings with companies across the globe. We place great value in staying connected with the businesses in which we invest.
This need to maintain a high level of connectedness became even more paramount in 2020 when – due to the pandemic - our in-person meetings stopped. The switch to virtual meetings actually increased our contact with companies; conducting over 20,000 meetings during the year.
Portfolio managers
79 Equity
29 Fixed income
174 Equity
50 Fixed income
12 Macroeconomic
74 Traders
Bringing together the different perspectives. Because our equity and fixed income analysts see things from different perspectives, they are able to bring useful information to each other to enhance decision-making. They even visit companies together to talk to management. The end result is that we are able to see ‘both sides of the balance sheet’. Such a process has the potential to deliver compelling investment ideas and gives portfolio managers a broader and deeper understanding of risk.
Data as at 31 December 2020. Source: Capital Group. Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organisation; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
We’ve always believed that knowing how a company interacts with and impacts its community, customers, suppliers and employees is important to understanding its potential as an investment. Our experience and research indicate that a company taking a thoughtful and robust approach to Environmental, Social and Governance (ESG) dimensions is a positive indicator of sustainability and strategic thinking and that those factors will eventually be positively reflected in a company’s share price.
At Capital Group, considerations of ESG risks and opportunities are deeply woven into The Capital SystemSM and factored into our fundamental research, due diligence and engagement.
Our investment analysts average 14 years of experience and understand the specific challenges of the industries they cover. So they know the right questions to ask and go beyond third-party sources. Capital Group has invested nearly 4,000 hours creating more than 30 proprietary, sector-specific investment frameworks that distill our perspective on material ESG issues and inform our evaluation and engagement processes.
Data at 31 December 2020. Source: Capital Group
We have nearly nine decades of experience developing relationships with like-minded firms. Today, we work closely across North America and Europe with all five of the largest banks. We believe collaboration is key in driving successful partnerships. Cultivating our relationship with advisers is a cornerstone of our business. The UK asset management industry is changing, and we at Capital Group will grow and change with it.
We plan to resource our business for growth, launching and optimising investment vehicles for the UK market. Our focus is on enabling you to support your clients by offering a range of tools, regular investment communications, educational materials and events.
Sales guides, videos, emails and assisted selling tools
Regular webinars, video and webcasts
Supporting the professional development of your advisers
Advertising, PR and brand-building support