Sinking Ship - Recensione dipendente - Dipendente anonimo presso Capital Group

-Master Retirement Plan = Can only invest in American Funds -A sinking ship. No longer producing products the public wants. The new strategy is having VPs come up with the new direction = their current solution: Just copy the same under performing, expensive active funds in new vehicle forms: SMAs, LUX, SAs. If no one wants your flavored soda, why keep offering it in different bottles? The evidence is in the pudding. BlackRock and Vanguard have had AUM triple in last ten years, while Capital Group has remained relatively flat from $1.2T to $1.6T, much of it due to the overall rise in equities during this bull market -Products are too large, as they add more and more investment managers and keep slicing the pie into slivers. How can having 30+ managers (several are never disclosed btw) beat the market? -They will often show you results on how they beat the market from the 1930's or 1970's. Unfortunately info was not readily available back then to the public, therefore, as they visited companies it became easier to beat the market since they were the holders of the data.Today info is more widely accessible and cheaper. Info is disclosed in an instant and we all have the data now, its not proprietary to Capital. My case in point, as the emerging of the info age: Compare their funds or institutional products to the S&P 500 and the results are atrocious (1992-2018 Growth Fund of America-A 367.22% vs 559.27% in SPY) -Lovelaces own 51% of the company. The rest gets divided among the employees in high positions. Many of these employees in high positions have stayed for years because the dividend payouts are lucrative, many times earning much more than their annual salary. The problem though is old ideas and no innovative products or ideas -Millennials are asking for cheaper products, with more relevance to their lifestyles such as ETFs and value products with easier access to open accts. Unfortunately, you have to go through a broker or jump through hoops and pay higher fees or commissions to get their funds and no ETFs or value funds offered (exception WMIF). They are working on an active ETF fund but have had problems getting approvals from the SEC, kind of late in the game though and a losing proposition since they will attempt to just replicate one of their under performing mutual funds or institutional products -If you're in operations, good luck. Your job will be automated soon -If you're innovative and full of ideas, go somewhere else. They look to hire from the best colleges and bright people, however, their talent is put to waste since they do not want innovative ideas. Promotions are based on who is the best operationally and an order taker, not progressive and innovative