Tim Armour became the Chairman of the Capital Group on July 28th, 2015. The Capital Group is the home of American Funds and is one of the world’s leading investment firms. Tim was previously the Chairman of Capital Group’s management committee and Capital Research and Management Company. He was also an equity portfolio manager.
Tim Armour has over thirty-two years of investment experience, all with the Capital Group, which is almost unheard of these days to have been with one company for so long. He started his career at Capital Group in the Associates program for new college hires. Early on in his career with Capital Group, he became an equity investment analyst, where he covered global telecommunications and US service companies. He received a bachelor’s degree in economics from Middlebury College.
When it comes to talking about actively managed mutual funds, Tim Armour writes that investors need to search out active managers that earn their keep with the fund. The best fund managers spend their time researching companies that are both in their fund or ones that would be a good investment for their fund and its investors. They need to be studying in-depth analysis of each and every company they plan to invest in or are currently invested in. They should use that analysis to make informed decisions and uncover insights on both the company’s current and their future prospects. Managers need to take an active approach with not only their management teams but with the experts in the companies that they are considering or are invested in. They need to complete due diligence with each company and do a financial analysis so that they can understand the risk reward trade-offs.
Click here to learn more about Tim Armour and his role as a investment manager.
In actively managed funds, the manager’s job is critical in doing better than the market and protecting the fund from potential downsides. They key in finding an actively managed fund that is worth the cost is to find a fund where the managers have outpaced the benchmarks of their category over the long term. Research has shown that active funds that have both low expenses and where the manager has a large amount of their own money invested often outperform their benchmarks, making them well worth the cost in the long run. Tim Armour believes that investors need to be able to invest with those active managers who earn their keep.