You may not be familiar with Capital Group, but the Los Angeles-based firm runs American Funds, which has a gigantic presence in 401(k) plans. Out of the 100 largest funds in 401(k) plans, eight are American funds, according to financial consulting firm BrightScope.
At Capital Group, several managers run each fund, with up to 12 stock or bond pickers at the helm of each portfolio. The managers run slivers of the funds independently. Some may focus on high-growth stocks, for example, while others take more of a value approach.
American’s managers thoroughly research companies to find attractively priced, growing firms. They aim to hold stocks or bonds for the long term. Many managers have skin in the game, too: Nearly every fund has at least one stock or bond picker who has more than $1 million of his or her own money stashed in the portfolio.
We analyze each of these funds, rating them “buy,” “sell” or “hold.” The symbols and expense ratios are for Class F1 shares, which you can buy outside of retirement plans. The share class in your 401(k) will be different and may have lower fees. Returns and data are as of Oct. 31; three- and five-year returns are annualized.
SEE ALSO: 25 Best Mutual Funds in 401(k) Retirement Plans
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Date — November 8, 2017 5:00 am
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