Capital Research And Management Company

CRD#110885
Investment Advisor Firm

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Learn more about Capital Research And Management Company

  • Overview
  • By the Numbers
  • Fee Structure
  • Types of Clients
  • Disclosures
  • State Registrations
  • Office Locations

    • Overview

    Capital Research and Management Company is an advisory company that has its headquarters in Los Angeles, California. Capital Research and Management Company manages $1.9 trillion in assets throughout 3,599 accounts, placing it among the largest investment advisory firms in the nation by assets under management (AUM). The company has a very large group of 1,079 employees, including 267 financial advisors. Capital Research and Management Company is not a registered broker-dealer, meaning the company is not able to buy and sell securities for its customers' and own accounts and instead is required to go through a broker-dealer company to do so. Securities are tradable financial investments such as options, equities and bonds.

    Capital Research and Management Company oversees more than half of the firm's client assets in a discretionary manner. Discretionary management means that a portfolio manager has the discretion to make transaction decisions without requiring client permission. Capital Research and Management Company also manages 53 non-discretionary accounts with a total of $3.8 billion in AUM. The advisory firm supervises an average of $539.0 million for every client account. An average advisor at Capital Research and Management Company oversees about 13 client accounts, making it one of the more individualized firms in the country.

    The company's headquarters is at 333 S Hope Street, Los Angeles, California 90071-1406. It is allowed to provide services to clients throughout 52 U.S. states and territories.

    Number of Advisors

    267

    Disclosures

    No

    Office Location

    333 S Hope Street
    Los Angeles, CA 90071-1406

    Capital Research And Management Company by the Numbers

    Total Number of Employees

    1,079

    National Average: 4,943
    Total Number of Accounts

    3,599

    National Average: 2,522
    Average Account Size

    $540.2 million

    National Average: $1.3 million

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    Fee Structure

    Financial management fees usually depend on which services are offered. Fees charged by Capital Research and Management Company most likely are comprised of the following fee structures: asset-based or other. The company does participate in a wrap fee program, in which the company offers a bundle of services for a single fee.

    Available

    • Offered by 75% of firms

      Percentage of Assets

      Show Explanation

      This fee, which is the most common fee type charged by advisors for portfolio management, is based on the amount of assets you have under management. Also referred to as an asset-based fee, this fee typically ranges from 0.50%-2.00% of AUM annually. You'll typically pay a lower rate the more assets you have under management.

    • Offered by 12% of firms

      Other

      Show Explanation

      Firms can sometimes charge customers using non-traditional fee structures. See this firm's Form ADV for more details.

    Unavailable

    • Find one of the 37% of firms that offer this fee type

      Hourly

      Show Explanation

      Like a lawyer, a financial advisor may charge you by the hour. This can be helpful if you are only looking for short-term or one-time advice. Rates typically range from $100-$300 per hour, depending on the complexity and level of services needed.

    • Find one of the 3% of firms that offer this fee type

      Commissions

      Show Explanation

      Occasionally, advisors earn commissions from selling financial products, such as securities or insurance policies, or making certain referrals or transactions. Advisors who earn commissions may be incentivized to make certain recommendations to clients in order to make a commission. Fee-only advisors do not earn commissions, while fee-based advisors may.

    • Find one of the 17% of firms that offer this fee type

      Performance-based

      Show Explanation

      Advisors only earn performance-based fees if a portfolio outperforms a defined benchmark. This fee may be calculated in a number of ways but most commonly is charged as a percentage of investment profits. Performance-based fees may incentivize advisors to make riskier decisions in order to generate higher returns.

    • Find one of the 1% of firms that offer this fee type

      Subscription

      Show Explanation

      Firms generally charge this fee for educational materials provided, such as a monthly magazine. This can be useful if you want to learn about investing or financial management on your own.

    • Find one of the 40% of firms that offer this fee type

      Fixed

      Show Explanation

      Fixed fees are a one-time, lump sum charged for a specific service, like the creation of a financial plan without subsequent implementation. This can be useful if you only need advice for one specific purpose, rather than a long-term advisor. Fixed fees usually range from $1,000 to $3,000.

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    Types of Clients

    The company works with a broad range of customers. The firm provides services to retail investors, investment companies, pooled investment vehicles, corporations and other types of clients. Out of its 3,599 clients, Capital Research and Management Company's biggest client is retail investors. Just 2% of the firm's accounts are represented by people from outside of the U.S.

    • High-Net-Worth Individuals* - 0%
    • Other Individuals - 92.8%
    • Corporations - 7.2%
    • Charitable Organizations - 0%

    * The U.S. Securities and Exchange Commission (SEC) defines a high-net-worth individual as someone who has at least $750,000 under management.

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    Disclosures

    Capital Research And Management Company does not have any disclosures.

    Please visit its Form ADV for more details.

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    This content was compiled from the SEC and FINRA