News Column

Ten American Funds Named to "Fantastic 48" In Latest Annual Review by Morningstar

August 30, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- Ten American Funds have been cited for excellence in Morningstar's annual review of more than 7,000 mutual funds, which examines long-term performance, expense ratios, portfolio manager experience, risk, stewardship, and whether managers invest significantly in their own funds.

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The "Fantastic 48," which refers to the number of funds that met Morningstar's criteria this year, recognized a wide range of American Funds including growth, growth and income, equity income, global and balanced funds.

"We're very pleased that American Funds has again been recognized by Morningstar for consistently delivering outstanding long-term value to our shareholders with fees that are below the industry average," said Matt O'Connor, Executive Vice President of American Funds Distributors. "The breadth of American Funds honored by Morningstar also is significant, demonstrating once again that we have a fund to help meet the needs of just about every investor."

Morningstar noted that the funds have outperformed their benchmarks over long periods of time, with low costs and long manager tenure contributing to their results.

"American Funds' proven approach of combining fundamental research with a unique investment management system that maximizes the skills of our highly experienced portfolio managers has produced excellent long-term outcomes that have helped our shareholders to pursue their personal objectives," O'Connor said. "That has been our commitment for more than 80 years and remains our focus today."

The American Funds honored by Morningstar include six domestic stock funds: AMCAP Fund(®), American Mutual Fund(®), Fundamental Investors(®), The Growth Fund of America(®), The Investment Company of America(®), and Washington Mutual Investors Fund(SM). Two allocation funds, American Balanced Fund(®) and Capital Income Builder(®), which invest in stocks and bonds, also were recognized, as were New Perspective Fund(®), which invests in companies in the U.S. and abroad, and New World Fund(®), which invests in emerging markets and global equities.

Morningstar presented data for each fund, showing the expense ratio, the tenure of the longest serving portfolio manager, the fund's annualized return over that manager's tenure, the return of the fund's benchmark, and the percentage by which each fund exceeded its benchmark index during the manager's tenure. That data (period ending March 31, 2014) is shown in the table below.

Figures shown are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Fund results are for Class A shares and reflect deduction of the 5.75% maximum sales charge. For current information and month-end results, visit americanfunds.com.

Fund name/symbol Expense Ratio (%) Longest Mgr Tenure (Yr) Start Month Tenure Return Annualized Index Return OutperformanceVersus Index

Keywords for this news article include: American Funds, Banking and Finance.

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Source: Investment Weekly News


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