Capital Group is recognized by Morningstar as a highly recommended multimanager investment firm in the U.S. On October 1st, 2015, Janet Yang, Fund Analyst of Morningstar provided an analysis in an advisory report of the company and its subsidiary, American Funds.
Based on the report, Capital Group’s American Funds received a higher Stewardship rating of A for the its culture three months after Mr. Armour was elected as Chairman of the Los Angeles based firm, in July 2015. He joined the firm as an intern, in the 1980s, immediately after graduating from Middlebury College, earning a bachelor’s degree in economics. As one of the equity portfolio managers, he continuously contributes to the growth of one of the largest and growing investment management companies, worldwide.
Janet Yang’s forecast of the Capital Group comprises of the company’s culture of investment strategies and some background history of the firm. She stated in the analysis American Funds received a higher rating for providing incentives to their fund managers and their history of following regulations. Since the Capital Group was founded in 1931 as a private company, its complete equity investment managing portfolio, including all its subsidiaries have grown to more than $1.3 trillion in assets management. In the early 1950’s, the firm adopted the multimanager investing system and continues to use the same system with some enhancements. It is accredited to the success of the firm and Tim Armour will continue to lead the company to the top using the system while serving as Chairman.
Capital Group selected Mr. Armour to replace former Chairman James Rothenberg after he passed away. Tim helped structure the multimanager investing system to permit twelve or more equity portfolio managers and analysts to manage individual portfolio of funds. The system is proven to work for the firm’s investors providing diversification of funds with low volatility during most economic condition. In 2013, Capital Group began implementing transparency efforts to provide reports for advisors and institutions. These reports provide transparency of portfolio managers, research portfolio, top holdings, and contributions.