The Sky Is Not The Limit For Capital Group Under The Leadership Of Timothy Armour

Recently, Timothy Armour has taken on the Chairman position of Capital Group after the demise of its former Chairman James Rothenberg.

After joining the Capital Group in the year 1970, Rothenberg had helped the firm expand its business worldwide and acquire many clients. Armour has more than thirty years of experience in investments, and this is one of the reasons he was suitable for the chairman position. Armour is expected to work hand in hand with other senior members of the firm such as Rob Lovelace who is the president of Capital Research and Management Company among others to carry out the company’s businesses.

Another thing that made Armour outstanding for the Chairman position is the fact that he had worked with the firm all his life. He joined Capital Group in the year 1983 as an associate and worked with other employees to make the firm better than they found it. Timothy graduated from Middlebury College with a degree in Economics. He gained the thirty-year experience while working at Capital Group thus understanding and analyzing US service companies and global telecoms. In the report he gave after being elected as the firm’s Chairman, Armour commented how the company was filled with grief after the loss of one of the company’s colleague.

From working with the firm for so long, Armour was in a position of understanding the firm’s strengths and weaknesses. According to him, he outlined that the company’s success and strength majorly relied on the collectiveness of its employees to come together and deliver long-term investment advice. This is one of the major factors that made the company become famous and formulate a name for itself over the years after being launched in 1931. The Firm is known as one of the oldest but still, the largest investment company with a long-term focus. Ever since it was formed, the company has been able to have offices in more than twenty cities including Sydney.

Armour commented that the company is planning to collaborate with Samsung Asset Management to assist each other on asset management and global investments for the Korean market. The Samsung Asset Management and Capital Group will majorly focus on product supervision, investment administration, distribution channels and retirement organization. Mr. Armour said that the reason as to why they are helping the Korean market is the fact that Korea is being faced with statistical challenges when it comes to providing financial requirements to the aging population. Capital Group will help in co-designing investments outcomes for the Korean market.

Under the leadership of Timothy Armour, the Capital Group is in safe hands and the firm is bound to go far.

Getting to Know the New Chairman of Capital Group

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.

Related: https://www.bloomberg.com/news/articles/2015-07-28/capital-group-names-armour-chairman-to-succeed-james-rothenberg