FA Magazine May 2023 - Page 56


Who Were America ’ s Top RIAs In 2022 ?

Manager Aline Avzaradel Age 44
Professional Background She is an equity portfolio manager at Capital Group , where she has worked for 18 years . Before joining Capital Group , she was an investment banking analyst with Morgan Stanley .
Outside Interests Enjoys traveling with her family , trying new restaurants and keeping busy outside of work with three kids .



Manager David Hoag Age 57
Professional Background He is a fixed-income portfolio manager at Capital Group , where he also serves on the Fixed Income Management Committee and the Target Date Solutions Committee . He has been with Capital Group for 31 years .
Outside Interests Enjoys gardening , golfing and snowboarding . He and his family are involved with a number of organizations , including Habitat for Humanity and Canine Companions .

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Fund , the different equity and fixedincome portfolio managers have discretion over their respective sleeves . Ultimately , their decisions are oriented toward the fund ’ s mandate of income generation and growth of capital .
“ But within that you might have different styles , and some managers are less concerned about recession so they have different sector allocations ,” Avzaradel says . “ That provides diversification to the fund and helps it do well over the long term .”
The fund ’ s dozen portfolio managers don ’ t focus on a particular area or areas , but instead call themselves diversified portfolio managers who evaluate ideas across various sectors . “ I ’ m a generalist ,” says fixed-income manager David Hoag . “ I consume all of the recommendations coming out of fixed income across all of the asset classes CIB can invest in . We have a tremendous amount of resources to utilize .”
The fund ’ s fixed-income allocation is almost entirely investment-grade fare , with the vast majority invested in U . S . securities . ( Foreign securities contributed more than 30 % of the equity port-
folio at the end of 2022 .) Hoag notes that the credit quality tends to be on the higher end to keep the correlation with equities lower .
“ Fixed income has a secondary role in CIB ,” Hoag says . “ My job is to provide income for the fund when it ’ s available , and to provide relative stability .”
Hoag says the fund ’ s recent fixed-income allocation was positioned for a slowing economy . That mirrors the overall view on the equity side , where Avzaradel describes the portfolio as being a little more defensive with a focus on companies thought to have resilient business models during times of recession , strong balance sheets and high cash-flow generation .
“ In an environment of high interest rates and a tough equity market where investors put a high value on solid balance sheets and cash flows , this is the perfect environment for our fund ,” she says . “ That ’ s why it did well [ in 2022 with relative outperformance of a 7 % loss against a category average loss of 12.3 %], and I think the fund should continue to do well because we might be in that environment for some time .”