When the Board of Directors of the Capital Group Companies announced that they were naming Tim Armour as chairman in July of 2015, few were surprised, however, it was a bittersweet moment for Armour as he replaced former Chairman, Jim Rothenberg, who had passed away. After 32 years with Capital Group Timothy Armour is well qualified for the position, where he, along with other senior managers, will oversee operations and set the investment management firm’s business strategies.
According to Armour and Capital’s own research, investors do best putting their money in actively managed funds with low fees and with a manager who has his or her own money in the fund as well. Before Rothenberg’s death, Armour, who was on the management committee, championed the in-house research that proved that certain types of active fund management, especially funds that did not continuously churn their portfolios, benefited investors in the long-term.
Armour, who began his career with the Capital Group in 1983 in The Associates Program after graduating from Vermont’s Middlebury College with a degree in economics. After The Associates Program, Armour became an equity investment analyst specializing in global telecommunications. While he works out of Los Angeles, Armour’s Capital Group is one of the largest investment management firms in the world, managing more than $1.4 trillion in assets.
Recently announcing a strategic partnership with Samsung Asset Management, the Capital Group will assist the Seoul-based asset management company with their active investment capabilities. The two forms will co-develop retirement solutions as well, according to Armour, who is looking forward to meeting the needs of Korean investors with Capital Group products distributed through Samsung distribution channels.
Expecting to do well under the leadership of Timothy Armour Capital Group will likely continue with its successful long-term performance track record, especially with its subsidiary of the American Funds mutual funds suite of products. After all, Armour stresses that investors don’t have to accept average returns, although he admits that there are numerous mutual funds to select from, which may be overwhelming for the average investor. He recommends that investors seek out funds with long-term above-average returns, which is quite naturally his goal for the Capital Group.