Timothy Armour has put his Bachelors in Economics to good use over the course of his career.
Working as an equity portfolio manager, an equity investment analyst and now as a chairman and Chief Executive Officer of Capital Research and Management Company. Capital Research is part of the Capital group, which is one of the largest investment managers in the world.
Capital Group has recently partnered with Samsung Asset Management, cooperating to “fulfill the savings, retirement and insurance-linked needs of Korean investors”. The partnership will look to design investment solutions as a part of a broader solution. The partnership brings together Capital Group, with over a trillion dollars of assets under management, and Samsung Asset Management, with $166 billion in assets under management.
Humbly, Armour offers some advice for investors, emphasizing the importance of finding competent active managers. It is important to see beyond “active vs passive” when making investments, the focus should be on delivering high returns in the long run he claims.
Armour mentions that management fees often take a cut out of these returns, even in passive investment. A manager should actively earn their keep, passive investments aren’t safe from market downturns. Armour clarifies that doing better than the crowd when the market as a whole struggles is one of the most important things for an investor.
On recent developments, such as the market selloff in September 2015 and the post-Trump changes, Armour is optimistic. He believes the selloff was simply a correction of the market, necessary to eliminate “pockets of excess”. On the growth since the election, Armour argues that its a permanent and real change, and smart investors have a lot to gain by listening.
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