American Funds is a family of 33 mutual funds managed by Capital Research and Management, part of the Capital Group Companies. Capital Research and Management serves as the investment advisor to the 33 American Funds. The company does not advertise and shuns publicity, preferring to rely on brokers' recommendations to their clients. With over $1 trillion in assets under management

Assets under management

Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...

 (as of November 2010), American Funds is the third largest behind Fidelity

Fidelity Investments

FMR LLC or Fidelity Investments is an American multinational financial services corporation one of the largest mutual fund and financial services groups in the world. It was founded in 1946 and serves North American investors. Fidelity Ventures is its venture capital arm...

 and The Vanguard Group

The Vanguard Group

The Vanguard Group is an American investment management company based in Malvern, Pennsylvania, that manages approximately $1.6 trillion in assets. It offers mutual funds and other financial products and services to individual and institutional investors in the United States and abroad. Founder...

.

In February 2007. a California appeals court said the attorney general could sue American Funds for fraud stemming from allegations that the fund company did not inform investors that it was paying kickbacks to brokerage firms to entice brokers to recommend the funds to their clients. A lower court had ruled that the state lacked jurisdiction to file suit. The California Attorney General later dropped the suit in February 2008.

External links

• American Funds homepage
• Capital Group Companies homepage