June of 2015 was a success story for Timothy Armour; Capital Group board of directors appointed him as their Chairman. Capital Group is the home of American fund and world’s leading investment firm managing over $1.4tn assets.
Circumstances that Led Appointment
Before the appointment, Tim was the Capital Group management committee Chairman and the Chairman, Director and Executive Officer for Capital Research and Management Company. His appointment came after the demise of the former president, Jim Rothenberg after a heart attack.
During his years as the deputy to Rothenberg, Tim played a prominent role to championship in-house research design. In this role, he assisted in realizing long-term benefits of individual fund management methods. He also engaged with the media to lift some secrecy around the company’s operations.
Tim’s Advice to Investor’s
Tim believes that managers should go out and explore new possibilities instead of benchmarking on the returns. Tim Armour writes in the Wall Street Journal, there are better alternatives out there waiting to be explored by active managers. He also believes that as long as managers keep the fees low and do not churn their portfolios, then they can easily outperform the market in the long run.
He further advises investors on advantages of doing better than the market during crisis times. According to him, investors should hire managers who help them do better than average. An investor should work on hiring a manager who will earn his keep. Such managers are actively involved in outpacing their benchmarks over the long run.
Partnership with Samsung Asset Management
Later after his appointment, Capital Group partnered with Samsung Asset Management. The partnership was signed to allow the two companies work together to help the Korean company familiarizes with Capital-style active management style.
Tim commented on the deal saying it was one of Capital Groups broader plan to co-design investment projects. These solutions would realize retirement, savings, and insurance related needs of the Korean investor.
About Tim Armour
Tim Armour’s career journey kick-started in 1983 when he became a participant in The Associates Program at The Capital Group Companies Inc. He also served as an Equity Investment Analyst which gave him extensive skills in the job market. During this time, he dealt with global communications and U.S service companies.
Tim Armour has over 33 years of experience, all of which he has gained with Capital Group. Tim is based in Los Angeles and has a Bachelor’s Degree in Economics from Middlebury College.