Timothy Armour was selected by Capital Group to serve them as the chairman of the company on July 2015. He was among the leading candidates having a vast experience in investment for about 33 years. Capital Group commonly termed as the home of American funds is one the top best companies when it comes to fund management. Timothy got a paramount role in fighting against the rising index tracker funds among active fund managers.
Capital Group manages about $1.4 trillion in the form of assets and is determined to rebuild its market share which has fallen a little bit behind the upcoming passive fund managers. It is a tough challenge for Capital Group after the loss of Jim Rothenberg who died serving as the chairman.
Tim Armour being the chosen chairman, says that Jim was a great leader who made very purposeful decisions for the betterment of their clients, associates as well as investors. He added that even as they mourn his death, they should know that the strength of the company lies in the collective talents of all the stakeholders. And thus should work together to deliver their mission and continue their 84 years legacy of success and fulfillment of clients expectations.
Another management rearrangement included additions of responsibilities to the grandson of the company’s founder, Rob Lovelace. Recently Armour had the chance to make some decisions for the company such as lifting some of its secrecy operations and also dealing with the media. He has also previously served Mr Rothenberg as his deputy, and with other executives, they would support in-house research aimed at driving long-term benefits to specific types of active fund management. The company has considerably improved on its sales operations and is still relishing the resulting fruits of the improved long-term performance of some key funds such as the suite of the American Mutual Funds.
Capital Group managed to receive new monies which are more compared to what other groups got within the first half of the year. This is according to information released by Lipper data where Vanguard led with an inflow of $127 billion and Capital Group drew with $17 billion.
Timothy Armour says that everyone should not always work towards some set or targeted returns when better opportunities are lying in the market. He believes that active managers can do better in the long run if they stop churning their portfolios and keep the charging fee as low as possible. Through advertising and carrying out research on active management as suggested by Timothy Armour, Capital Group has managed to turn their flows again.
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