Investors in the mutual funds of Capital Research & Management appear to have taken notice of the funds being beaten by more than half of their peers in 2008 and 2009, as redemptions are coming in at the fastest pace the company has seen in its 79-year history. Last year alone, the company was hit with $25.5 billion in redemptions, and in the previous year, $16 billion.
Although the $1.18 trillion firm’s American Funds was the best-selling mutual fund family for years following the dot-com crash and the fund trading scandal, since it remained largely unscathed by the litigation, the company is experiencing a reversal of fortune.
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