Stay Active But Remain Cool

Tim Armour is presently the Chairman of Capital Group. Armour was elected to the position following the death of former chairman Jim Rothenberg. Capital Group is considered one of the leading investment firms in the world. Armour brought 33 years of Capital Group experience to the Chairmanship.

Tim Armour’s election was part of a leadership succession plan crafted several years before Jmaes Rothenberg’s death. Tim Armour has devoted his entire career to Capital Group. Armour graduated from Middlebury College in 1983 with a bachelor’s degree in economics. He then immediately started his career with Capital Group by being accepted into their Associates Program. He would go on to work as an equity investment analyst which would groom him for becoming Capital Group’s Management Committee Chairman.

Tim Armour has developed a philosophy that investors should ” find active managers who earn their keep”. He believes many financial managers have become lazy, relying on index funds and not researching companies. In a October 2016 article in the Wall Street Journal, Armour uses a Blockbuster to Netflix analogy to make his point. His point is, index funds cannot make distinctions on business trends. Only a solid financial manager can catch these trends.

Tim Armour did not waste any time to make bold moves after being appointed Chairman of Capital Group. In October of 2015 Capital Group formed a partnership with Samsung involving Asset Management. The deal involves Capital Group and Samsung Asset Management to work together to co-develop retirement solutions and asset allocation products. Samsung’s goal is to become one of Asia’s top three asset management companies. Tim Armour said the ” broader plan is to co-design investment solutions to fulfill the savings, retirement and insurance-linked needs of Korean investors.”

Not long after taking the helm at Capital Group, Tim Armour was tested by market events. In August of 2015 the Dow Jones fell 521 points in one day. The catalyst was the downward trend of the Shanghai Composite. Many investors panicked. Armour stayed cool and attributed the trend to a market correction in reaction to a six year bull market. He was right.

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