American Funds announced in November 2025 that equity portfolio manager Steve Watson will be removed from American Funds Capital Income Builder’s roster on Jan. 1, 2026. Watson has served as a manager of the fund since 2007. Meanwhile, Dimitrije Mitrinovic and Andrea Montero will be named as equity and fixed-income managers of the fund, respectively, on Jan. 1. This fund’s Above Average People and Process ratings are not impacted by these shifts.
After these changes, as well as the previously disclosed departure of equity manager Caroline Randall in advance of her retirement, the fund will still have a robust lineup of experienced managers. The nine remaining equity managers other than Mitrinovic average roughly 12 years of tenure here, and Mitrinovic has been a manager on dividend-oriented equity strategy American Funds Fundamental Investors for five years. Watson and Randall managed 8% of the fund at the end of 2024, so only a modest portion of assets is changing hands.
The equity manager changes are spurred by a broader reorganization in which most of the firm’s equity portfolios (including those within allocation funds) will only be managed by one of the firm’s three equity-oriented subsidiaries; many are currently managed by two. Watson will remain with the firm and continue to manage other investment vehicles.
