Timothy Armour is a 32 year veteran of Capital Group. He was promoted to the position of the Capital Group succeeding James Rothenberg who passed on after a heart attack. At the time of the appointment by the Capital Group board, Armour served as the firm’s management committee. The firms are one of the largest funds manager with assets valued over 1.25 trillion mostly for clients who hold equity mutual funds.
Armour joined Capital Group after he had graduated from Middlebury College in Vermont, he is a champion of active management. In various interviews, he has defended the historical performances of the firms’ stock pickers. He says that their main aim is to enable the clients to get a better return over a certain period of time.
Since the 2008 financial crisis investor have been pulling their funds from the active manager in favor of the index as well as the exchange traded funds that imitate indexes. Despite these challenges, Timothy Armour has a different perspective for the investor.
Amour says that investors need to look for active managers who can earn them their keep from their investments. He notes that the best active funds managers use their time by doing research diligently on companies that are both in their funds as well as the funds of the investors. Managers need to analyze the performance of each and every company that they have plans investing in or companies currently invested in. He says that managers should use the deep analysis to uncover insight and make an informed decision on both the company’s future prospects as well as interest. Not only should managers take action with their teams but they should also do so with the experts of the companies that they are considering to invest in. prior making the decision to invest manager should finish due diligence on the company and carry out financial analysis so that they can comprehend the risk and tradeoffs.
The experience of Armour has enabled him to give an expert opinion regarding various activities in the global financial markets such as the September 2015 selloff. Although many experts believe that China is to blame for the causes of the selloff, Timothy Armour has other opinions. He believes that the rise of the interest rates would limit the return on the investments that he has noticed that in the previous years it was almost zero, thus it gave analysts the confidence that led to the rise of the problems experienced in the recent years. Amour acknowledges while the U.S. and China are driving the economy, the zero interest rates is good and that the change of the U.S policy will assist the global market and assist the developing countries to build a strong foundation in future.
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