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Rekenthaler Report

American Funds Keeps Rolling

On performance, not assets.

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Another Fine Year
I have something of an obsession about American Funds--to the point where a Capital Research employee sent a LinkedIn invitation that identified me as a colleague at the firm. (Perhaps he ticked the wrong box by accident. At least, so I hope.)

The company intrigues me because, as one of the world's largest active stock managers, it very visibly accomplishes what index-fund proponents claim cannot be done: outperform year after year, decade after decade.* Yet despite the results, nothing seems to change. Professors and pundits continue to decry the folly of active portfolio management, and American Funds continues to suffer the recent fate of many active stock-fund managers: net redemptions.

John Rekenthaler does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.