Category Archives: Portfolio Management

Capital Group’s Portfolio Management Veteran

Published / by AlbertK / Leave a Comment

The recent economic woes in China, which triggered a tumble in the money markets globally has caused jitters among investors. There is growing fear that the situation may deteriorate leading to financial losses. The fact that it originated from China, a leading investment destination for many investors has done little to inspire hope even in the most courageous risk takers.

In the midst of all this gloom and negative forecasts and reviews of the Chinese and indeed global financial markets, experienced portfolio managers with business acumen believe that this trend is healthy for investment. One such portfolio manager is Timothy (Tim) Armour; a leading authority in portfolio management and the current chairman of Capital Group.

Timothy (Tim) Armour: Recent Market Selloff is Healthy

Despite the negative reactions by many investors to recent market selloff, Timothy (Tim) Armour believes that the volatility in the financial markets offers an opportunity especially in companies with strong growth records and stability. He believes that even though it was primarily triggered by slow economic growth in China, the short term volatility will pave way for more robust growth in the equity markets in the long run.

Mr. Armour believes these short-term volatility in the equity markets are as a result of market corrections coming on the backdrop of a strong performance of the markets for over five years. The tumble, therefore, weeds out excesses and undue risks taken by investors. His positive outlook is informed by China’s economic growth, which still outperforms many economies despite the downturn.

Leadership Succession

Timothy (Tim) Armour is a qualified authority on portfolio management. Having graduated from Middlebury College with a bachelor’s degree in economics, he joined Capital Group under its Associates Program. He rose through the ranks of the company in over three decades to become its Chairman. Timothy Armour’s appointment in July 2015 was occasioned by the death of Jim Rothenberg, who he was deputizing.

Prior to his appointment as Chairman, Timothy Armour served as an investment analyst within the company’s equity department and chairman of the eight-man collegiate management committee; a position he still holds. The succession plan and multi-manager system is a well-thought strategy that is firmly established within the organization’s culture. The process is marked by multilevel interviews during hiring to ensure that only competent individuals are hired by the firm. This has seen many managers, including Mr. Armour, spend their entire career at Capital Group.

Click here to read more about Capital Group’s CEO, Timothy Armour.