Active Managers With Collaborative Funds Can Earn Long-term Returns

Timothy (Tim) Armour, the CEO of Capital Group, cautions investors to be sparing in the use of “product labels” and hesitant in engagement in “intra-industry debates. Armour, who is the chairman of one of the largest and eldest investment companies in the world, believes that the investment classifications “passive” and “active,” are insignificant.

In his tenure at Capital Group and his attachment by association to the organization’s admirable sustainability “in good markets and bad,” Armour has seen the company achieve an annualized 1.47 percentage point above the index benchmark. He added, with well-deserved bragging rights, that Capital Group has accomplished this industry feat even after the expenditure of all assets.

Rather than focus on passive index returns, Armour invites investors to discuss ways to earn higher recompense. He does not feel that there is anything incidental or “random” about the good exchange for long-term, equitable lucre. For Armour, it is about finding hedge fund managers willing to endow aggregated funds with enough of their personal money for long-term returns to survive a downturn in the “bull market” — with minimized exposure to its volatility.


The collaborative investments efforts suggested by Armour are reflective of his business ideology which is providing superior results using the “collaborative talents” of Capital Group. Armour humbly accepted his election to chairman of the organization two years ago following the passing of the title’s predecessor, Jim Rothenberg. Armour has served in many positions within the company leading up to his ascension to administrative leadership.

With his cultivated exposure to various aspects of investment management and witnessing the success of Capital Group with all of its clients and investors, he is more than qualified and entitled, with notable credibility, to provide fledgling fund managers with advice. His expectation is for them to “earn their keep.”

According to Armour, managers who have relationships procured with investors, need to be “active” — just like that of a positive, “active return” percentage, assessed for performance. Without the metaphorical “crystal ball,” Armour would like to see these active managers study the market with exceptionality to maneuver invested assets with fluidity in the market’s unpredictable outperformance or slump.

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