Go inside the elite investment firm withCapital.

The Capital Group is one of the world?s largest investment management organizations, but little is known about it because the company has shunned any type of publicity. This compelling book, for the first time, takes you inside one of the most elite and private investment firms out there?the Capital Group Companies?a value investment firm par excellence. It digs deeps to reveal the corporate culture and long-term investment strategies that have made Capital the one organization where most investment professionals would like to work and would most recommend as long-term investment managers for their family and friends.

CHARLES D. ELLIS is a recognized expert on investment management. For thirty years, he was managing partner of Greenwich Associates, the leading worldwide strategy consultant to the investment industry, where he developed close working relationships with senior executives at most of the major investment firms in the United States, Canada, England, Japan, Germany, and Australia. His other activities have included teaching the investment management course at both the Yale School of Management and Harvard Business School; and chairing the CFA Institute. He currently serves as a Director of Vanguard; advising some of the world's largest Investing institutions; and chairing the investment committees at the Whitehead Institute and Yale University. Among his ten prior books is Winning the Loser's Game. He is one of only ten individuals honored for lifetime contributions to the investment management profession.

Foreword xi

Introduction 1

Chapter 1 The Founding 9

Chapter 2 Staying Alive 25

Chapter 3 The Multiple-Counselor System 35

Chapter 4 Organizing the Core 49

Chapter 5 Mutual Fund Distribution 61

Chapter 6 Crossing the Rubicon: Capital Group 91

Chapter 7 Shareholder Services 101

Chapter 8 Acquisitions and Start-Ups 123

Chapter 9 Capital Guardian Trust Company 139

Chapter 10 Global Investing 165

Chapter 11 Emerging Markets 185

Chapter 12 Managing People 201

Chapter 13 Management 223

Chapter 14 Compensation 249

Chapter 15 Investing 265

Afterword 291

Appendix I Summary Statement of Corporate Objectives and Goals 301

Appendix II Outline of Basic Managerial Beliefs 307

Appendix III Growth of the Capital Group Companies, Inc 309

Index 311