Timothy Armour who served previously at the Capital Group Cos for 32-years prior to being named the successor to James Rothenberg who died of a heart attack, Armour is now the chairman of Capital group. The 54 years old previously served as the chairman of the firm’s management committee. Capital Group manages assets valued at $1.25 trillion for its clients whose most of it is in equity mutual funds.
His expertise opinion is highly valued. He says that there are fund managers who can earn their investors their keep and insist that investor should find such managers. Armour compares the early 2000s the stock market to the current stock market, he makes the comparison between the market valuation of the Blockbuster which at its peak had a valuation of $5 billion and Netflix that is now estimated to be worth $45 billion, while the Blockbuster is bankrupt.
According to Armour, there is a difference between the index informed investment and active manager investment. The index funds make no judgment nor difference, it simply buys the stock based on the rank of the current valuation.
On the other hand, the long-term active managers take a closer look at the value in various investment options to assist the investors to perform better in contrast to the market average over a considerable period of time. He says that best managers spend time digging company’s information applying strong analysis to inform their views and to discover the more about the companies and its future prospects. By doing this amongst other things enables an active manager to outperform the market and earn their investors their keep.
According to Timothy Armour on the 2015 market sell-off triggered by the China Woes, is that U.S, as well as other parts of the world, has had 6 years Bull Run and rising markets. He says that the U.S’s markets were fairly stretched for some companies and sectors. He stated that the correction was expected and that having a correction once in while is important since it removes pockets of excess.
In addition, Timothy Armour has led Capital Group into partnership with a Korean assets manager known as Samsung Asset Management (SAM). This strategic partnership is meant to develop Korean market capability and asset management products. The partnership will also enable both firms to develop Korea’s market retirement products that are co-branded.
For more information, connect with Tim Armour of the Capital Group on LinkedIn.