Capital Group is one of the largest investment management organisations in the world, and yet has always shunned the publicity courted my many other leading institutions. For the first time, Charles Ellis takes you inside one of the most elite and yet private investment firms.

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

Praise for CAPITAL " Indeed this book represents a perfect pairing of one of the most astute observers of the investment scene with one of the most outstanding investment firms ever created." —From the Foreword by Burton G. Malkiel, author of A Random Walk Down Wall Street "This is a great story about great people with a passion for long-term investment success through discipline, planning, and patience; joined to imagination, innovation, and vision. Many valuable insights." —Peter L. Bernstein, author of Against the Gods: The Remarkable Story of Risk "At last! A revealing, insightful, knowledgeable perspective on one of the world's great investment management organizations by the deft hand of Charley Ellis." —John Neff, professional investor "Packed with entertaining anecdotes and pearls of wisdom (don't neglect the footnotes!), Capital takes us on an intimate tour of a premier investment management firm. Another classic by Charley Ellis." —Jack R. Meyer, former president and CEO, Harvard Management Company "Few people know the investment management business as well as Charley Ellis. This book offers a rare inside look at Capital, one of the best investment organizations. This text is a whodunit, tracking the development of a world-class investment firm and the people who drove it." —Abby Joseph Cohen, Goldman Sachs "Illuminates a great investment organization well worth studying—by everyone." —George J. W. Goodman, also known as "Adam Smith" of Adam Smith's Money World and author of The Money Game

Foreword. Introduction. Chapter 1. The Founding. Chapter 2. Staying Alive. Chapter 3. the Multiple-counselor System. Chapter 4. Organizing the Core. Chapter 5. Mutual Fund Distribution. Chapter 6. Crossing the Rubicon: Capital Group. Chapter 7. Shareholder Services. Chapter 8. Acquisitions and Start-Ups. Chapter 9. Capital Guardian Trust Company. Chapter 10. Global Investing. Chapter 11. Emerging Markets. Chapter 12. Managing People. Chapter 13. Management. Chapter 14. Compensation. Chapter 15. Investing. Afterword. Appendix I. Summary Statement of Corporate Objectives and Goals. Appendix II. Outline of Basic Managerial Beliefs. Appendix III. Growth of the Capital Group Companies, Inc. Index.