This podcast episode explores the origins and evolution of Capital Group's unique investment process, known as the Capital System. The system involves multiple portfolio managers working together to manage funds, with a focus on smoothing out performance volatility. The optimal number of managers has been found to be around five or six. The podcast also discusses the challenges and opportunities faced by Capital Group in the evolving investment landscape, including the rise of passive investing and the impact of geopolitical tensions. The speakers emphasize the importance of a global investment perspective and succession planning for long-term success. Additionally, the episode delves into Capital Group's culture, innovation strategy, philanthropic model, and insights from experienced investors.
