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Birth of an investment management system

Jim Lovelace
Senior vice president, Capital Research and Management Company
Investment experience:
30 years

The Multiple Portfolio Counselor System®, probably more than anything else, has formed the unique culture that we have at Capital.

After people come to Capital, they really do recognize that this place works very differently.

One thing about this system is that it puts great emphasis on individual judgment, creativity and responsibility. You do what you think is best.

You can invest in a stock that others don’t like, and you can even exchange investments with a colleague.

If they’re giving up on an investment, and you still think there’s value in it, we can facilitate those kinds of exchanges. Individual judgment, creativity and responsibility are matched with a culture of cooperation and communication.

It’s vital to our system that we share our ideas with each other and that we challenge each other on whatever we’re doing. And that is what makes the whole thing tick.

Available transcripts:

The statements included in this section are the opinions and beliefs of the speakers expressed at the time the commentary was recorded and are not intended to represent those persons’ opinions and beliefs at any other time.

Past results are not predictive of results in future periods.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investing outside the U.S. involves risks such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. See the most recent shareholder report or prospectus for more information on these and other risks associated with investing in the fund.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Bond prices and a bond fund’s share price will generally move in the opposite direction of interest rates.

Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed-income investment professionals provide fixed-income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups. 

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.