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Capital Group: The Investment Maestro

Timothy D. Armour is a seasoned investment professional, currently working as the chairman and chief executive of Capital group. He is a proud alumnus of Middlebury College and holds a bachelor’s degree in the specialty of economics.

Mr. Armour’s long and fruitful investment career can be dated back to the year 1983 when he joined Capital Group through the associate group. Despite his youthful age, he became the group’s equity investment manager. He was later promoted to the equity portfolio management committee, where he was one of the eight members. The late Jim Rothenberg headed the committee.

Due to his excellent education and wealth of experience in investment, Mr. Timothy Armour was named the group’s chairperson on 28th July 2015, following the death of Mr. Rothenberg. Speaking after his appointment, he reiterated that capital group management would continue working hard to deliver on their commitments to investors. Capital Group has built a legacy in the investment arena for the last 84 years.

In an article posted on Wall Street Journal, Mr. Armour advises investors on ideas for finding an active manager. According to him, an active manager is one who is able and willing to research widely about the company and its future. He further describes an active manager as one who goes an extra mile and arranges meetings with competitors and distributors. All these moves are aimed at helping the manager to analyze the position of the company in the corporate sector with respect to its financial status and competition.

Under the leadership of Tim Armour, Capital Group has collaborated with the Korea-based Samsung asset management company, with the aim of developing joint investment strategies for investors in Korea. Speaking after entering the partnership, Mr. Timothy Armour said that Capital Group’s goal is to design a system that will take care of retirement, savings, and insurance related needs for the entire investment population in the Republic of Korea.

Armour’s Views About the 2015 Market Selloff

In September 2015, investors viewed China’s economic growth to be “sluggish.” These concerns were scaring investors from both China and its other trading nations. In an attempt to save the situation, China decided to lower bank interest rates for investors. This move provoked market selloff. Bearing in mind that China is a significant player in the global economy, the decline in its stocks will hurt the global economy.

Asked to comment on these developments, Mr. Armour said that the market selloff was necessary and healthy since it removed the pockets of excesses. However, he noted that there was a need to raise interest rates for banks to make profits and, hence, limit undue risks among investors.

Source: http://www.reuters.com/article/us-americanfunds-armour-idUSKCN0HY0EN20141009