Timothy Armour is the chairman and chief executive officer for Capital Group, he is based out of the Los Angeles office.
His other positions within the company are the chairman and principal executive officer of Capital Research and Management Company and chairman of the Capital Group Companies Management Committee. In addition to all of those positions, he is an equity portfolio manager. In total, he has over 33 years of investment experience, with positions in both research and management of portfolios.
Timothy didn’t walk into his prestigious jobs, he earned them through hard work and astute predictions of the market. He has an uncanny ability to be equally aggressive and cautious, depending on the terms of the markets.
After he received his degree in Economics from Middlebury College in Vermont, he began his professional career at Capital when he joined the Associates Program in 1983. From there he served as served as an Equity Investment Analyst before moving into other positions.
Advice for Current Investors
Today Mr. Armour is an advocate for the active management of funds. In other words, he believes fund managers should be investigating sectors by speaking with companies, researchers, industry experts, and principals in all aspects of the market. He believes above average returns can be delivered by index funds when proper research along with manager invested money are applied to the funds.
He points to a study done by Capital Group showing that, over a 10 year period, funds that were actively managed and included the manager’s money, exceeded their benchmark 89 percent of the time.
He makes the point because he wants investors to know they don’t have to accept the average when they are using an index fund. An index fund should be looking for more than the benchmark when investing, within the rules of the fund. This is achieved by finding active managers, willing to do in-depth research, and bold enough to risk their own money in their choices.