Capital Group’s New Chairman Business Profile
Timothy Armour has a Bachelor’s Degree in Economics from Middlebury College. Has spent his entire career at Capital Group. Got his start participating in The Associates Program. Made his way to Equity Investment Analyst covering global telecommunications and U.S. service companies. Moved to Equity Portfolio Manager and Chairman. Before taking the position of Chairman…Director..and Principal Executive Officer at Capital’s Research and Management Company.
It was announced he was elected as Chairman on July 28, 2015. He and other senior members of the firm’s management were hired to continue and oversee Capital’s previous committee like structure. An eight person outfit operating in a more collegiate fashion than involving individual leadership. Yet some of this individuality has surfaced under Armour’s reign. He became Chairman upon the death of his predecessor Jim Rothberg.
Tim Armour feels the job of the long term investment manager is look for value in enough places to do better than the market average over meaningful periods of time. Also feeling the best managers spent time researching companies. Applying in depth analysis ti inform their views. And uncovering insights on the future prospects of these companies. And stressed doing better in the market during bad times and protecting the downside was also a critical part of the job.
Janet Yang felt he was a good choice due to his upholding Capital’s patient and long term approach. Another aspect of their management style is allowing managers and analysts to handle small slices of a client’s portfolio. Also transitioning personnel on and off these portfolios allowed for more movement within the company. Creating the most stable and long tenured teams in the investment profession Yang is of the opinion Armour is helping Capital with its public relations image. Capital also has a history of avoiding media interviews. Nor offering any disclosure regarding into its inner workings. Or portfolio contributions of its individual managers. Yet the company’s profile has risen in the public between 2008 and 2013.
Armour commented on Capital’s partnership with Samsung Asset Management. Citing the broad plan to co-design investment solutions to fulfill savings…retirement..and insurance linked needs of Korean investors. Feeling Korea was facing demographic challenges in meeting the long term financial needs of its aging population. In September 2015…he commented on China’s market selloff. Feeling they were in a rocky transition from a closed investment led economy controlled by the Chinese government to a open consumer led economy.
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