Capital Group

The company operates an asset management business model. It designs and manages pooled investment vehicles (mutual funds, ETFs, collective investment trusts) and bespoke mandates (separately managed accounts, private equity funds) and distributes them through advisers, retirement platforms and institutional channels. Clients delegate portfolio management and research to the firm, which seeks to deliver investment returns relative to benchmarks and peers.

Revenue is generated from ongoing management fees and related fund expenses calculated as a percentage of assets under management. As assets and fund ranges grow, management fee revenue scales with asset levels, subject to market performance and net client flows. For private markets products, it may also earn performance-related fees. The firm creates value by providing diversified access to public and private markets, institutional-grade research and portfolio construction, and operational infrastructure for retirement and institutional investors.

Capital Group is a large, privately owned US-based investment management firm best known as the manager of the American Funds range. It manages over US$3 trillion in assets across mutual funds, exchange-traded funds, separately managed accounts, collective investment trusts, private equity vehicles and retirement solutions, serving individual, high-net-worth and institutional investors globally.

The firm earns revenue primarily through asset-based management and fund expenses charged on these investment products. Its clients access strategies in public and private markets, with particular emphasis on actively managed mutual funds and emerging markets private equity. Distribution is mainly via financial advisers, retirement plan sponsors and institutional allocators rather than direct-to-consumer channels.