The $1.9 Trillion Fund Giant With a Crazy Idea About Investing
For almost 90 years, Capital Group has placed careful research at the center of its fund-management empire. But will people keep paying for it?
It’s been a trying decade for Rob Lovelace. Capital Group Cos., the money-management firm his father’s father founded in Los Angeles during the Great Depression, took a beating after the financial crisis. Over seven straight years, clients pulled out a staggering $425 billion. The company cut hundreds of jobs. Employees and customers wondered if Capital Group could turn things around.
At 56, Lovelace is slender, with bright blue eyes behind rimless glasses and a prominent forehead framed by wavy, light brown hair. In a rare interview at the company’s headquarters in a downtown L.A. skyscraper, he’s glad to say the arrows are pointing up again. New clients are coming with new money. Assets under management have rebounded to $1.9 trillion, double their low a decade ago. But the company’s future is far from secure.