The Chairman of Capital Group
The leading candidate to assume the chairmanship of Capital, Tim Armour, has taken a prominent role. His role is regarding the fightback of active fund managers against the rise of index tracker funds. Capital has fallen behind a new generation of passive fund managers. It will be a challenge for the company to rebuild its market share after the death of its chairman, Jim Rothenberg, on Tuesday. There is a management reshuffle expected after a board meeting next week. This could include new responsibilities for Rob Lovelace. He is the grandson of Capital’s founder.
Tim Armour’s current role as chairman of Capital’s management committee has been a key deputy to Mr. Rothenberg. He has been championing in-house research. This research is designed to show long-term benefits of specific kinds of active fund management. Over recent years, he has also played a role in Capital’s decision to lift some of the secrecy around its operation as well as engage more with the media.
Sales operations have been sharpened by the company. They have enjoyed the fruits of improved long-term performance records for key funds. This included its historic suite of American Funds mutual funds. Capital’s mutual funds took in more new money than any other group in the first half of this year.
As long as active managers keep fees reduced, do not churn their portfolios, and have a history of portfolio managers investing in their own funds, they can outperform the market in the long run.
Tim Armour is a 32-year veteran of Capital Group. He has spent his entire investment career there. Mr. Armour specialized in analyzing global telecoms and U.S. service companies initially. There is an eight-person management committee at Capital that Tim Armour is already part of. The asset management firm will have a more collegiate leadership structure than other groups managed by a traditional chief executive.
Timothy Armour’s Background
Tim Armour is chairman as well as chief executive officer of Capital Group. He is also principal executive officer and chairman of Capital Research and Management Company, Inc. This is also part of Capital Group. Mr. Armour is also chairman of the Management Committee, Capital Group Companies as well as an equity portfolio manager. He has 33 years of investment experience. All 33 years have been with Capital Group. Tim started his career at Capital as a participant in The Associates Program. Mr. Armour also has a bachelor’s degree in economics from Middlebury College.
Click here to learn more about Tim Armour.