In an article posted on CNBC, equity portfolio manager and the Present Chair of Capital Group, Timothy “Tim” Armour revealed that he agreed with Warren Buffet’s opinion that the investment market has many mediocre funds that shortchange investors and charge them ludicrously large fees. He also stated that he supported the billionaire’s commitment to simple, low-cost investments that are held long-term.
Tim Armour’s Investment Market’s Perspective
Tim starts by warning consumers to avoid concentrating on product labels and the “passive versus active” debate, which does not serve them. He believes that excessive trading and high management fees lead to poor long-term returns. He believes that managers and investors need to rise above passive and active management styles and find a balance that gives investors high returns.
He continues by saying that in reality, passive index funds do not provide a cushion against periods of down markets. He adds that there is no sure way of identifying funds that will outperform. However, he advises the market to watch out for funds with high manager ownership and low costs of operation.
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As Capital Group’s CEO and Chairman, Timothy D. Armour is tasked with growing the group and its subsidiary funds. With an impressive 34-plus years dedicated to Capital Group, Tim was the perfect candidate to take over the Chairmanship seat following the untimely death of former CEO Jim Rothenberg.
Capital Group Partners with South Korea’s Samsung Asset Management
Capital Group and South Korea’s Samsung Asset Management have announced a mutually beneficial partnership. Capital Group cites that it plans to assist its Korean associate to familiarize with its “Capital-style active management.”
On the other hand, a Seoul-based representative of Samsung Asset Management emphasized that the affiliation with Capital Group would be essential in achieving the firm’s goal; to become one of Asia’s top three asset management firms by 2020. Tim Armour said that the overall partnership encompassed co-designing investment solutions that offer satisfactory results in the saving, retirement, and insurance-linked desires of Korean investors.
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