What Is the American Funds Investment Company of America Fund?

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 in traditional 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 the end of 2021, its AUM were $223 billion and 89% of its portfolio is invested in large-cap stocks.
  • As the name implies, the Investment Company of America primarily focuses on American holdings—with 87% of its assets in U.S. equities.
  • Over the last 10 years it has generated an average annualized return of 12.77% (as of Jan. 31, 2022).

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 $223 billion (as of the end of 2021). It has 87% of its assets invested in U.S. equities, 8.6% 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 communication services—comprise 22.2% and 14.4% of the fund's net assets, respectively. Third is health care with 11.5% and fourth is consumer discretionary with 11.2% (all as of the end of 2021).

AIVSX's top equity holdings as a percentage of net assets are as follows (as of Jan. 31, 2022):

  • Microsoft (7.9%)
  • Meta Platforms—formerly Facebook (4.0%)
  • Broadcom (4.0%)
  • Amazon (3.9%)
  • Alphabet (3.8%)

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 13.04% (as of Jan. 31, 2022). Over a five-year period, the Investment Company of America fund returned 11.75% while over a 10-year period it had an average 12.77% return. Since inception on Jan. 1, 1934, the fund has generated an annualized return of 12.1%.

Article Sources
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  1. Morningstar. "American Funds Invmt Co of Amer A AIVSX."

  2. Capital Group. "The Investment Company of America (AIVSX)."

  3. Capital Group. "Fund Overviews."

  4. Capital Group. "About Us."

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