Capital Group Breaks Silence to Defend Active Management
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Capital Group Cos., the $1.2 trillion firm that ran the world’s largest stock mutual fund before being overtaken by low-cost indexing competitors, said the advantages of active stock picking have been drowned out in the debate over how individuals should invest.
“The only voice that’s been out there is the passive voice,” James Rothenberg, chairman of Capital Research & Management and the company’s top executive, said in an interview in New York. “We don’t entirely agree that the answer for all people is indexing. In fact there can be a significant advantage to active investing.”