Capital Group’s Board of Directors announced, July 28, 2015, that Timothy Armour had been elected Chairman of the Capital Group. Mr. Armour’s election is part of a leadership succession program that has been in motion for years. Sadly, the death of former Chairman Jim Rothenberg necessitated the formalization of the plan.
Janet Yang, an independent investment research firm analyst, gives Capital, with $1.4 trillion in assets, an A rating, and calls it a model of sound and stable investment culture, helped by Armour, along with Rob Lovelace and Darcy Kopcho. She notes that Capital continues to advance and to pay attention to investing and to creating long-standing and reliable end results. She states that it is not uncommon for portfolio managers to work at Capital their entire investment careers.
Timothy Armour is one of those managers. He began his career with Capital, in the Associates Program, and has remained there for over 30 years.
Besides being chairman of Capital Group, Timothy Armour is chairman and principal executive officer of Capital Research and Management Company, Inc., part of Capital Group, and chairman of the Capital Group Companies Management Committee. Early in his career, Mr. Armour was an equity investment analyst, covering global telecommunications and U.S. Service companies for Capital.
He earned a Bachelor’s Degree in Economics at Middlebury College.
In a Wall Street Journal article (October 18, 2016) Mr. Armour stated that investors could “find active managers who earn their keep.” How? As the title of the article says: You don’t have to settle for average investing returns.
A long-term active manager’s job is to find “value in enough places to help investors do better than the market average over meaningful periods of time.”
Good managers research companies. They analyze in depth educate themselves and to learn the companies’ prospects. They take an active approach: meeting with management teams, doctors, competitors, distributors, and academics. They do financial analysis and learn the risk-rewards trade-offs.
You would not hire the average of all doctors or attorneys. You hire one doctor or attorney. You don’t employ the average of all active managers. Employ one who does the research and analysis — one who earns his or her keep.