Tim Armour is the Chairman and CEO of the Capital Group Companies, a top-rated financial investment management firm established in 1931 based in Los Angeles, California. He also chairs the group’s subsidiaries. The company provides financial investment services and asset management including underwriting mutual funds. In a recent interview, Tim Armour was vocal about the need to find experienced and smart fund managers.
He believes the decision on whether to invest in a passive or active fund should have little bearing on the performance of your portfolio. A smart investment should be low cost, simple and deliver good long-term returns. It is important to thoroughly research and understand the dynamics of individual assets. Tim was commenting on a quote by Warren Buffet that he can get better returns from an investment in a passive fund than a group of hedge fund managers.
Tim also challenges the impression that index funds are a safe bet. He notes that the funds are correlated with the markets. They are therefore fully exposed to volatility and economic fluctuations. Tim Armour suggests an exceptional fund manager should have an in-depth understanding of their assets and the markets. This enables them to make solid long-term projections that grow your assets. Click here to know more.
Additionally, active managers who earn their keep should have their money in the same bag as their investors. It shows commitment to outperform the competition well above relevant benchmarks.
Tim Armour has over thirty years’ experience in various roles at the group. He rose through the ranks in the company and was elected to the Chairman position in 2015. Besides setting business strategy at Capital Group Companies, Tim actively manages equity portfolios with a strong focus on global telecoms and service firms in the US. Tim is at the forefront of educating investors to enable them to identify active fund managers who deliver exceptional returns.