Capital Group Provides Steady Market Beating Returns

Timothy Armour has been the chairman and CEO of Capital Group since 2015. They happen to be a long-running success story with over $1.5 trillion worth of assets under management. However, in recent years they’ve been facing stiff competition from passive index funds, especially post-Great Financial Crisis. It has seen its Growth Fund of America slip from its perch as the largest mutual fund. It’s been overtaken by Vanguard and State Street’s flagship passive funds.


Enter a new strategy, which takes them into unfamiliar territory. In recent years they’ve begun aggressively marketing their active management style. Prior to investors shifting attitudes on index investing, they were content to operate out of the spotlight. However, with the new rush to index funds, they are making their case more noticeably. They’ve been buying ads detailing how their American Funds performance has been beating the indexes and Tim’s lacrosse camp.


Under Tim Armour’s leadership they’re making known the critical research that shares what to look for in an active fund manager who outperforms the market. Two indicators are essential, low management fees and managers who invest heavily in their own funds. This is Capital Group’s own research which has been substantiated by Morningstar. Nearly two-thirds of Capital’s American Funds are considered low fee and nearly all of Capital’s funds are operated by portfolio managers who have at least one million dollars of their personal money invested and learn more about Timothy.


Janet Yang of Morningstar has applauded Tim Armour’s promotion to chairman and CEO, noting that he has a foresight regarding future business needs and demands. Additionally, in 2015 American Funds of Capital Group received an A rating from Morningstar. Armour will continue to help set the firm’s direction whose aim is to generate greater returns over time. Patience, a long-term horizon, and active management are the hallmarks of Capital Group. These have been developed over decades and will certainly continue under the leadership of Tim Armour and more information click here.


Tim Armour has been with Capital Group since 1983 starting as a member of the Associates Program. He graduated from Middlebury College with a bachelor’s degree in Economics. Interestingly, he faced an important choice right after his completion of college. He was allowed to take nine months off before starting with Capital Group to manage a windsurf shop in Florida. He realized within the first two weeks that he couldn’t make a career of it. Innumerable investors are glad that it didn’t pan out.


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