Timothy Armour is the current chairman of the Capital Group Companies. Armour has a BA in Economics. The Capital group’s board of directors elected Timothy Armour as the Chairman of Capital Group. Until his election that was announced the company’s Board on July 28, 2015. Together with top management, Tim Armour was given the responsibility for implementing the company’s overall business strategies as well as supervise operations.
Armour is the successor of Jim Rothenberg who passes earlier on, the company’s Board followed the succession plan that had been in motion for many years. According to the succession plan, it states that the strength of Capital Group is based not on a single person but a combination of talents of all their associates who believes in the mission to give superior, long-term investments outcomes to their investors. This enabled Timothy Armour to rise at the helm of Capital Group.
As a chairman of Capital Group, Timothy Armour led one of the longest funds manager into partnership with Korea’s Samsung Asset Management. The two firms strategic partnership to work together toward building up active investment strategies for retail investors and institutions. Capital Group will assist it Korean partner understand active capital management and provide guidance on the business management and client management.
Timothy Armour chairman of a company that has an investment in Netflix, advice investors on the approach of finding active managers who can invest in companies with potential. He says that index fund makes no judgment or difference, this is because it simply acquires stocks that are currently on the peak. He gives an example market situation in 2000, buying Blockbuster stock, which at its peak had $5 billion capitalization or opt for Netflix stock which was a fledgling publicly traded company. The fact that Blockbuster is bankrupt today and Netflix is worth more than $45 billion proves that investors need fund manager who can discern market patterns.
According to Armour, the best manager uses their quality time doing research on companies making in-depth analysis to inform their views and to gain insights on the company’s future predictions. He gives an example of the health-care demands from old baby boomers is linked with time for the revolutionary therapies. An active perspective includes meeting with management teams and doctors, competitors, academics, distributors and doing due diligence on the financial analysis in order to know the risks-benefits trade-offs. He states that doing better than the market during the rough times and look after the downside is an important part of the job.
Connect with Tim Armour on LinkedIn for more information.