What makes American Funds different?
With about 8,000 mutual funds to choose from, your employer believes American Funds is the right choice to manage your retirement savings.
American Funds has applied a consistent philosophy and a consistent approach to generate consistent results for more than 75 years. We have grown into one of the largest and most respected investment management firms in the world.
Our combination of strengths has enabled us to earn our shareholders’ trust. Our emphasis on consistent returns with low volatility — whether the market is up or down — has kept shareholders with us for a long time.
We believe that our shareholders can benefit from five factors that make American Funds different:
- Focus: A long-term, value-oriented approach
AUDIO CLIP: Hear one of our portfolio counselors
Listen to Gregg E. Ireland, an American Funds portfolio counselor, talk about our long-term investing approach. To listen to the commentary, you must have RealPlayer®.
- Insight: An extensive global research effort
- Perspective: The multiple portfolio counselor system
- Experience: Knowledgeable investment professionals
- Value: A commitment to low management fees
Focus: A long-term, value-oriented approach
Our investment philosophy is based on doing what’s right for our shareholders.
- We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term.
- We do the thorough research necessary to determine the actual worth of an organization.
- We always pay particular attention to risk and our efforts to protect investors’ money.
Shareholders have been able to count on us for consistent long-term results, not euphoric short-term results.
A global reach
Insight: An extensive global research effort
We commit substantial resources to find the best investment opportunities around the world. Our 173 investment professionals — who speak more than two dozen languages among them — are based in research offices worldwide. Last year, they visited thousands of companies in more than 70 countries. To determine a security’s true value, we get to know a company inside and out. We visit a company before and after we invest in its securities.
To get a well-rounded view of a company’s operations, we also meet its suppliers, bankers, customers and competitors, as well as industry specialists, economists and government officials.
Perspective: The multiple portfolio counselor system
Under the multiple portfolio counselor system, each fund’s assets are divided into smaller, more manageable portions. Each segment is managed independently by a different portfolio counselor. Generally, one portion is managed by a group of research analysts, who invest in the industries or areas they cover. We’ve been using the system for half a century.
Our unique system of managing funds blends teamwork with individual accountability. The variety of perspectives adds diversification. Portfolio counselors and research analysts can act on their beliefs without a need for consensus. Counselors can be added to a fund as assets grow. If one manager retires or leaves the fund, only a portion of the fund’s assets changes hands.
Depth of experience
Experience: Knowledgeable investment professionals
Managing assets is a skill learned only after years of experience and training. American Funds portfolio counselors have an average of 26 years of investment experience, providing a depth of knowledge that few organizations can match.
We also have research analysts who have been building relationships with the same companies for decades. This long management tenure has helped us maintain our consistent investment style over the years.
Value: A commitment to low management fees
When choosing investments, it’s important to consider ongoing investment management expenses. Annual expenses can have a significant impact on long-term returns.
That’s why we strive to keep fund management expenses as low as possible for our shareholders. We are committed to providing exceptional services at a reasonable cost. In addition, managing large assets with relatively few funds allows us to pass along economies of scale to our shareholders.
For in-depth information about any of the American Funds, including charges and expenses, obtain the fund prospectus from your financial representative or download it online. Read it carefully before investing or sending money.
Return to topInvestors should carefully consider the investment objectives, risks, charges and expenses of each fund. This and other important information is contained in the prospectus, which can be obtained from your financial representative or downloaded. Please read the prospectus carefully before you invest or send money.