Capital Group Private Client Services was originally formed as a family office for one of the world’s largest and most successful investment management organizations. We now manage assets for a select group of wealthy individuals, trusts, foundations and endowments worldwide.
Though we are a boutique firm, we are able to tap into some of the industry’s most experienced portfolio management professionals, with in-depth analytical coverage around the globe.
Our clients also benefit from the resources of our Wealth Advisory Group, which develops customized financial plans tailored to each individual’s specific needs.
Because we are a privately held organization, our interests are aligned with yours. Managing assets and providing financial guidance to our clients is our only business. Plus, we offer full trust services, giving you the ability to extend your wishes and values across multiple generations.
Let’s face it. Everyone wants to accomplish something different with their wealth.
Defining your specific financial goals and the importance of each objective is the crucial first step of our in-depth wealth planning process. For instance, in addition to meeting your normal living expenses, do you want to take a major vacation, buy a second home, gift to family members or leave a legacy to your alma mater?
With the answers to these questions in hand, we can work with you to develop an appropriate asset allocation designed to meet each objective.
It’s what we call our Goals-Based Portfolio Solutions process, or GPS for short. This enhanced analysis augments our traditional wealth planning work by customizing portfolio recommendations to address all of your financial goals.
GPS was built around extensive academic research and is modeled on the same basic framework used by pension funds around the world. It helps define the goals that are most important to you, and offers alternative approaches when there are insufficient resources to fund your entire wish list.
That’s why Capital Group has analysts stationed around the world to uncover attractive investment opportunities for our clients.
They live and work in these regional markets. Many speak the local language. They dig deep to understand every company before an investment is made.
Capital Group Private Client Services portfolio managers are able to tap into the proprietary research of more than 100 analysts based in key cities, including Los Angeles, New York, London, Geneva, Tokyo and Hong Kong.
Analysts frequently share their research with one another and make joint company visits to get the full picture on a potential investment. This allows portfolio managers to hear multiple perspectives before making decisions. We don’t rely on Wall Street publications or outside opinions. We conduct our own firsthand research, which is never sold or made available to third parties.
Capital Group uses a multilayered approach built on constant communication among analysts, portfolio managers and members of the in-house Capital Strategy Research economics team.
It’s a fundamental, bottom-up process designed to place client assets in what we believe to be the best companies, sectors and geographies — based not on some arbitrary formula or predictive system, but rather on where investment professionals are finding opportunity in the current environment.
When it comes to investing your portfolio, Capital Group Private Client Services has access to some of the most seasoned and tenured managers in the business. Our investment team dedicates significant resources to conducting in-depth, on-the-ground research globally to identify compelling investments.
This results in portfolios that make dynamic shifts across geographies, sectors and even market capitalizations in real-time, based on where the analysis takes us.
Our investment approach is built on six key tenets:
Every investment decision we make is based on our in-house, proprietary research. Capital Group analysts travel the globe and collectively visit thousands of companies, customers and suppliers each year to gain insight into each potential investment. They go to extraordinary lengths to gather firsthand information to determine a company’s underlying value and long-term growth prospects. This research-intensive approach is applied across our equity and fixed-income services.
We believe that when it comes to preserving and building wealth, it’s time — not timing — that matters. Rather than chase performance or follow the latest trends, we seek quality investments that can be held for the long haul. This approach has been highly successful and helps keep trading costs down. Importantly,it also helps maximize tax efficiency, an important consideration for high-net-worth investors.
The long tenure of our associates — from research analysts to portfolio managers — means you can feel comfortable knowing your assets are in the hands of professionals with significant experience navigating a variety of market conditions over many decades.
We look everywhere for high-quality investments — from Seattle to Singapore, Boston to Berlin and all points in between. In fact, Capital’s integrated global research network is so extensive that almost half of the research analysts are based outside the U.S. This breadth and depth offers an important advantage in today’s increasingly interconnected world.
Our proven approach has been tested through a wide variety of market and economic cycles, and is designed to generate steady results and lower volatility than the overall market over time.
We are extremely proud of our outstanding long-term record, which demonstrates the effectiveness of our approach. For instance, the lifetime annualized rates of return for the Capital Group Private Client Services U.S., Non-U.S. and Global Equity portfolios have all exceeded their respective benchmarks, net of investment management fees, with less risk and volatility as of September 30, 2015 (A complete presentation of our results is available upon request.)
We invest portfolios using what we refer to as The Capital System℠. This innovative structure gives clients access to high conviction investment ideas from several in-house managers, with the goal of creating broadly diversified portfolios positioned to do well in a multitude of market environments.
The approach combines the best of two seemingly contradictory forces — independence and teamwork.
Here’s how it works. Every stock and bond portfolio service is divided into sections that are independently overseen by different managers, all of whom have extensive experience and long tenure at our firm. Each manager has a distinct style and is able to invest in his or her best ideas. In many cases, a portion of the portfolio is devoted to those companies most favored by Capital Group research analysts.
The portfolio’s success isn’t tied to any one manager’s results, and the diversity of views, experiences and skills helps to contribute to consistency over the long term. In fact, investment manager compensation is heavily weighted on results over rolling four- and eight-year periods, to encourage long-term thinking.
In addition, through manager coordination of purchases and sales, we are often able to attain additional tax efficiencies within portfolios. To that end, we are extremely proud of our record for delivering outstanding after-tax results. In fact, we are one of the only firms in the industry to publish after-tax figures in compliance with Global Investment Performance Standards (GIPS).