Can American Funds Maintain Its Edge?
Even well-rounded active managers can get better.
American Funds' parent Capital Group now has a strong claim to be the world's most well-rounded active manager. But getting there wasn't easy, and staying there will be hard.
A Better Bond Lineup
The firm's fixed-income operations are no longer a laggard. After the credit-heavy flagship American Funds Bond Fund of America (RBFGX) performed poorly in 2008, Capital bolstered risk analytics and derivatives capabilities, recruited seasoned investors, and increased coordination between portfolio managers. Fixed-income and global trading head Mike Gitlin, a recruit from T. Rowe Price in 2015, also prioritized providing more ballast in in the next equity bear market.
Alec Lucas has a position in the following securities mentioned above: ANWPX. Find out about Morningstar’s editorial policies.