The American Funds Investment Company of America (AIVSX) is a large-blend stock fund. It seeks to provide a combination of growth and income to investors. The AIVSX ticker symbol denotes the fund's Class A shares. Investment Company of America fund first launched in 1934. Currently, AIVSX maintains a three-star Morningstar rating and a three-star rating over a 10-year period.
American Funds offers dozens of traditional mutual funds, as well as a large selection of portfolio and target funds. The portfolio and target funds are all “fund of funds,” as they invest intraditional mutual funds rather than in individual securities. American Funds is a subsidiary of Capital Group.
Key Takeaways
- The American Funds Investment Company of America (AIVSX) first launched in 1934 and is large-blend stock fund.
- As of May 2023, its AUM were $110.45 billion and 75% of its portfolio is invested in large-cap stocks.
- As the name implies, the Investment Company of America primarily focuses on American holdings—with 86% of its assets in U.S. equities.
- Over the last 10 years it has generated an average annualized return of 10.48% (as of May 31, 2023).
Investment Process
Capital Group is known for its emphasis on capital preservation and consistent long-term performance. The firm has a system that combines the benefits of individuality with teamwork. All managers and analysts assigned to a portfolio work together to research and share information about potential investments, though decisions regarding which specific investments to make are not done as a team.
Each person is given a percentage of net assets to invest as they see fit within the bounds of the portfolio’s objective. Capital Group firmly believes that this type of commitment investing creates a more stable, diversified, and better-performing portfolio.
Investment Portfolio
The American Funds Investment Company of America focuses on investing in a diverse group of large, well-established companies across the United States. It focuses exclusively on stocks and is optimized for the long-term with a focus on future income over high current yield.
AIVSX has a total asset under management (AUM) of $110.45 billion (as of May 2023). It has 86% of its assets invested in U.S. equities, 8.4% in non-U.S. equities—the rest is held in cash and U.S. bonds.
As the fund's top two sectors—information technology and healthcare—comprise 18.6% and 14% of the fund's net assets, respectively. Third is industrial with 13.7% and fourth is financials with 9.6% (as of March 31, 2023).
AIVSX's top equity holdings as a percentage of net assets are as follows (as of April 30, 2023):
- Microsoft (7.4%)
- Broadcom (4.1%)
- General Electric (3.8%)
- Alphabet (3.3%)
- Meta Platforms—formerly Facebook (2.4%)
Of note, dividends for AIVSX are typically distributed in March, June, September, and December. Overall, the fund has a low expense ratio of 0.58%.
Fund Management and Performance
AIVSX's longest-tenured managers are James Lovelace and Donald O'Neal, who each have been managing the fund for nearly three decades.Due to the team-based nature of fund management, they are accompanied by seven other fund managers, whose tenure ranges from one year to twenty years with the Investment Company of America fund.
AIVSX had a one-year return of 4.57% (as of May 31, 2023). Over a five-year period, the Investment Company of America fund returned 8.78% while over a 10-year period it had an average 10.48% return. Since inception on Jan. 1, 1934, the fund has generated an annualized return of 11.95%.
