The Chairman of Capital Group of Companies Take on the Role of Active Fund Managers

Timothy Armour is the chairman, equity portfolio manager, and CEO of Capital Group of Companies, one of the leading active fund managers in the world. He has vast experience and expertise in investment services and funds following his over three decades of career at the Capital Group. The financial services professional studied a bachelor’s degree in Economics from Middlebury College, after which he joined Capital Group’s Associate Program. He also served as an investment analyst at the company, working with various global telecommunications and U.S. service companies.

Career Background

Tim Armour, who began his work as a participant in Company’s Associate Program, climbed the career ladder gradually to being the chairman of the committee at Capital Research and Management Company as well as Capital Group. He then became the company’s chairman in July 2015 following the death of Jim Rothenberg, the former chairman. He has taken an active role in setting and communicating the business strategies, overseeing the operations of the company, and managing the business that is worth over 1.4 trillion in assets and more information click here.

Tim Armour Commentary

Tim Armour has also taken a significant role advocating for active fund managers rising against the rise of index tracker funds. Most investors have continually withdrawn their money from the active stock funds after the 2008 financial crisis and using index funds and exchange traded funds as an alternative. Mr. Armour indicated that the passive investments are highly prone to volatility risks and opportunity costs, just like the mutual funds. The commentary was about Warren Buffett’s statement on a passive index fund being a better investment choice than an active fund and his Linkedin.

Mr. Armour added that the goal of most mutual funds includes delivering long-term investment with minimal costs. He, however, acknowledged that most mutual funds provide poor long-run returns to their clients and poor services, but investors should not rule out the importance of investing in the active funds and learn more about Timothy.

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