The American Funds Advantage

Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach -- in combination with The Capital SystemSM -- has resulted in a superior long-term track record.

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Aligned with Investor Success

We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 25 years of investment experience, including 20 years at our company, reflecting a career commitment to our long-term approach.1

Our investment philosophy is based on doing what we believe is right for clients:
We reward long-term results
Compensation for investment professionals is heavily influenced by results over four- and eight-year periods.
We invest alongside you
Collectively, Capital Group associates are significant investors in the company's investment offerings.

Why it matters:

Our interests are deeply intertwined with those of clients.

1 Portfolio manager experience as of December 31, 2012.

"Another key to [Capital Group's] successful culture is its compensation structure. [Capital Group] pays performance bonuses to analysts and managers based on one-, four-, and eight-year records, with emphasis on the four-year and eight-year records. This isn't common in the mutual fund industry, where many firms emphasize shorter term performance, but it is a true competitive advantage." – Morningstar®, May 2011

The Capital SystemSM

Our investment process, The Capital System, combines individual accountability with teamwork. Each fund is divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.

Example: American Mutual Fund®

The Complete Process

Investment analysts representing a variety of geographic regions and sector concentrations follow the universe of investment opportunities identified in the investment offering.

Pool of analyst coverage

The Complete Process

Portfolio managers – and, notably, analysts as well – are assigned a portion, or sleeve, of the overall investment offering to manage independently, enabling them to focus on their highest conviction ideas.

Highest conviction ideas
Pool of analyst coverage
Manager and analyst sleeves

A Diversified Portfolio

The end result is a diversified portfolio composed of individual managers' and analysts' highest conviction investment ideas. Combining experienced managers' best independent decisions that are consistent with the investment offering's specific objectives delivers a portfolio with the potential for superior results over time.

Diversified portfolio
For illustrative purposes only. In funds with research portfolios, analysts invest directly in a limited number of the companies they cover.

Superior Long-Term Track Record

Our equity funds have a proven record of success over multiple cycles.

The American Funds have delivered consistently superior results over meaningful periods. Our equity funds have beaten their Lipper peer indexes in 90% of 10-year periods and 96% of 20-year periods.* Our fixed-income funds have beaten their Lipper indexes in 58% of 10-year periods and 63% of 20-year periods.*

Investors have been able to count on us for consistent long-term results.

Our equity funds have beaten their Lipper peer indexes in

90% of 10-year periods

and

96% of 20-year periods.*

*Based on Class A share results for rolling periods through December 31, 2012. Periods covered are the shorter of the fund's lifetime or since the comparable Lipper index inception date.

Past results are not predictive of results in future periods.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is
contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be
read carefully before investing.

Our fees are among the lowest in the industry

  • We are committed to providing exceptional services at a reasonable cost.
  • We have some of the lowest management fees among mutual fund companies.

Why it matters:

Lower fees can mean better long-term results for your clients.
The American Funds expense ratios are for Class A shares as of each fund's most recent printed prospectus available on January 1, 2013. For American Funds Tax-Exempt Fund of New York, the investment adviser is currently reimbursing a portion of other expenses. Net expense ratios reflected the reimbursements, without which they would have been higher. The adviser has committed to retain any reimbursements only through September 30, 2013. Please see each fund's most recent shareholder report or prospectus for details. Expense ratios do not reflect sales charges. Due to their significant investments outside the U.S., Capital World Growth and Income Fund, EuroPacific Growth Fund, International Growth and Income Fund, New Perspective Fund, New World Fund and SMALLCAP World Fund are included in the International/Global equity category.
Source for industry averages: Lipper, based on comparable categories for front-end load funds (except money market funds, which are compared against no-load funds), excluding funds of funds, as of each fund's most recent fiscal year-end available as of December 31, 2012.

Aligned with Investor Success >

We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 25 years of investment experience, including 20 years at our company, reflecting a career commitment to our long-term approach.1

The Capital
SystemSM >

Our investment process, The Capital System, combines individual accountability with teamwork. Each fund is divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.

Download a one-page summary of The Capital System.

Superior Long-Term Track Record >

Our equity funds have beaten their Lipper peer indexes in 90% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 58% of 10-year periods and 63% of 20-year periods.2 Our fund management fees have been among the lowest in the industry.3

1 Portfolio manager experience as of December 31, 2012.
2 Based on Class A share results for rolling periods through December 31, 2012. Periods covered are the shorter of the fund's lifetime or since the comparable
  Lipper index inception date.
3 Based on management fees for the 20-year period ended December 31, 2012, versus comparable Lipper categories, excluding funds of funds.

Past results are not predictive of results in future periods.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in
the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before
investing.