American Funds Investment Company of America Class A (IVSX)

Overview

IVSX employs proprietary valuation models to conduct in-depth research on small- and mid-cap companies located in developed markets outside of North America. The primary objective is to achieve growth through meticulous fundamental analysis. The fund's adviser relies on proprietary research methods and valuation models, including its unique Intrinsic Value Stewardship (IVS) model, to identify stocks that exhibit strong return potential. Key factors considered in the stock selection process include valuation, growth prospects, profitability, and overall business strategy.

This actively managed fund typically maintains a diverse portfolio with at least 150 positions, spanning across various countries and sectors. However, the fund may concentrate its investments more heavily on certain holdings when justified through comprehensive research findings. Additionally, the adviser monitors the positions closely and will sell those that no longer present compelling investment opportunities or have grown disproportionately large within the portfolio.

Products and Services

• Proprietary Research

  The fund utilizes specialized research methodologies to analyze potential investment opportunities in the small- and mid-cap segments. This research is fundamental in driving investment decisions and identifying stocks with significant return potential.

• Intrinsic Value Stewardship (IVS) Model

  This unique model aids the fund in assessing the intrinsic value of companies, allowing investors to identify undervalued stocks. The focus is on growth-oriented analysis, evaluating parameters like profitability and growth prospects.

• Diverse Investment Portfolio

  IVSX maintains an active portfolio that generally includes at least 150 different positions. This diversity helps mitigate risk while providing ample opportunities for growth across various segments of developed markets outside of North America.

• Active Management Strategy

  With a dedicated management team, the fund actively manages its investments, reassessing holdings regularly. This approach ensures that the portfolio contains only those positions that present continuing value and aligns with the investment strategy.

• Concentration Strategy

  When specific investments show strong potential based on in-depth research, the fund may choose to concentrate its holdings in those areas. This strategy is deployable if it is supported by sufficiently compelling research insights, thus maximizing potential returns.

• Risk Management

  The adviser closely monitors portfolio positions and is proactive in selling those that no longer deliver attractive investment opportunities. This vigilant risk management process is critical to maintaining the health of the investment portfolio over time.