American Funds
While many active managers are crumbing under pressure caused by a prolonged bull market and a general shift towards lower cost passive products, Morningstar believes several active managers are built for the long haul, among them American Funds.
“Even though this was a firm that many of you subtracted from client portfolios over the past two years, we think this firm has staying power in part because of the way they run money,” said Lutton. “They use a multimanager approach on their funds … and that helps avoid succession risk.”
Morningstar emphasizes American Funds' low expenses, which is unusual for highly rated, actively managed products.