The ICA Guide
The ICA Guide
The ICA Guide
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How <strong>ICA</strong> is managed<br />
A fund’s long-term success depends largely on how it’s managed. For more than 50 years, American<br />
Funds has relied on the unique Multiple Portfolio Counselor System ®<br />
to provide broad diversification,<br />
continuity of management and a history of consistent long-term results.<br />
Inside the Multiple Portfolio<br />
Counselor System<br />
Each of the 33 American Funds, including<br />
<strong>ICA</strong>, is managed by more than one<br />
portfolio counselor.<br />
• <strong>The</strong> fund’s assets are divided into smaller<br />
portions, each of which is separately<br />
managed by an individual portfolio<br />
counselor making independent decisions<br />
monitored for consistency with the fund’s<br />
objectives and overall guidelines.<br />
• Portfolio counselors are able to buy<br />
stocks and bonds according to their<br />
strongest convictions and can focus on<br />
a manageable number of companies.<br />
• Blending the separate holdings creates<br />
a broadly diversified portfolio.<br />
Research is key<br />
Investment decisions are based on solid<br />
research.<br />
• One segment of the fund’s assets —<br />
typically 20% to 30% — is managed<br />
by a group of investment analysts.<br />
• Each analyst specializes in certain<br />
industries and invests only in those<br />
sectors that he or she follows.<br />
<strong>The</strong> Multiple Portfolio Counselor System: <strong>The</strong> Investment Company of America<br />
Chris Buchbinder | San Francisco<br />
Years of investment experience: 16<br />
Joyce Gordon | Los Angeles<br />
Years of investment experience: 32<br />
James Lovelace | Los Angeles<br />
Years of investment experience: 30<br />
Donald O’Neal | San Francisco<br />
Years of investment experience: 27<br />
* As of December 31, 2011. Holdings will change.<br />
<strong>The</strong> holdings of <strong>The</strong><br />
Investment Company of<br />
America, which include<br />
approximately 130 stocks, *<br />
represent the individual<br />
investment ideas of seven<br />
portfolio counselors and<br />
23 investment analysts.<br />
Investment analysts<br />
Portfolio counselors<br />
A sustainable approach<br />
Effective long-term managers must be<br />
able to adapt to changes:<br />
• Changes in assets — <strong>The</strong> Multiple<br />
Portfolio Counselor System allows for<br />
portfolio counselor lineups to be<br />
modified as assets fluctuate. This helps<br />
promote a balance of investment styles<br />
and diversity of new ideas.<br />
• Changes in management — If a portfolio<br />
counselor leaves the fund, only a relatively<br />
small portion of the portfolio changes<br />
hands. When we know a portfolio<br />
counselor is leaving, we gradually move<br />
his or her assets to another portfolio<br />
counselor. <strong>The</strong>se smooth transitions have<br />
helped the funds maintain a consistent<br />
investment approach.<br />
Eric Richter | Washington, D.C.<br />
Years of investment experience: 20<br />
Will Robbins | San Francisco<br />
Years of investment experience: 20<br />
C. Ross Sappenfield | San Francisco<br />
Years of investment experience: 20<br />
Sizes of portfolio segments shown do not reflect actual relative allocations. Portfolio counselor information is as of the fund’s prospectus dated March 1, 2012.<br />
<strong>The</strong> <strong>ICA</strong> <strong>Guide</strong> 9