While recognizing that American Funds has some of the most diligent boards of directors in the business, Morningstar analyst Paul Herbert recently issued a report noting five arrears where they could do an even better job of overseeing shareholders' money.

First of all, Herbert applauds American Funds for devoting separate boards of directors to oversee separate groups of the company's funds. He also praises the boards for being run by independent chairmen.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.