Capital World Investors Profile
Capital World Investors is a subsidiary of the Capital Research and Management Co. that is based out of Los Angeles, California. It was created in 2008 when the parent company decided to disaggregate its equity investment operations to split it into Capital Research Global Investors and Capital World Investors. Although it is an independent equity division, Capital World Investors has the flexibility to manage any of the investment objects or vehicles that the Capital Group currently holds. The firm manages equity and balanced mutual funds, investing in the public equity and fixed income markets. Like its parent company, Capital World Investors operates by building portfolios “from the bottom-up using rigorous fundamental research to find attractive investments and manage risks.” Their research is done in house and are produced for internal use only, not published or sold to outside parties. Now it is one of three equity divisions, generally placing and emphasis on investments in equity, securities, and fixed-income securities. Currently, the independently acting subsidiary employs over 500 people, creating a market value of $375 billion dollars. Although its largest focus is on the financial services sector, it is diversified in its offerings with its largest sector focus only making up a fifth of its sector allocation. From 2013 to 2015, the total market value of the company has increased by almost $100 billion. Although Capital World Investors is a privately owned investment manager, it does not have a CEO but rather a president, James F. Rothenberg. Rothenberg has served as a president and director of Capital Research and Management Co. before and is now the treasurer at Harvard University as well as a leading figure at Capital World Investors. Another notable is Grant L. Cambridge, who serves as the Director of Research and is one of the many Portfolio Counselors at the company.