Investors are beginning to wonder whether American Funds' vigorous performance can continue, according to The Ledger-Star.

Some analysts are questioning whether the increase in assets will ruin the fund complex's ability to produce above average returns, as greater size often makes managers at popular funds face difficulty when it comes to adhering to strategies that made their funds brawny and attracted investors.

When reaching this point, many funds close to new money. American Funds has not followed in their footsteps, and instead has hired teams to make investment choices rather than using just one manager.

 

Chuck Freadhoff, a spokesman for the company, says it does not plan to close any of its funds.

In the case of American Funds, "their long-term performance has been excellent," said Bob Ballard manager in Norfolk based- A.G. Edwards & Sons. "These aren't funds that latch onto whatever is exciting at the moment."

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