Capital Group parent names Armour chairman, replacing Rothenberg

32-year veteran of the $1.25 billion money manager is a champion of active management

Jul 29, 2015 @ 6:31 pm

By Bloomberg News

+ Zoom

Timothy Armour, a 32-year veteran of Capital Group Cos., was named the chairman of the money manager, succeeding James Rothenberg, who died of a heart attack last week.

Mr. Armour, 54, most recently served as chairman of the firm's management committee, according to a statement Tuesday by Los Angeles-based Capital Group. The firm oversees $1.25 trillion for clients, most of it in equity mutual funds.

Mr. LArmour, who joined Capital Group after graduating from Middlebury College in Vermont, is a champion of active management. In in an interview last year in his Los Angeles office, he defended the track record of the company's stock pickers.

“Our number one mantra is we will get you better returns over time,” he said.

Since the financial crisis of 2008, investors have been pulling money from actively-managed stock funds, opting instead for index funds and exchange-traded funds which mimic indexes. Growth Fund of America, once America's largest mutual fund, saw its assets shrink to $113 billion at the end of 2012 from $193 billion at the end of 2007. Assets have rebounded to $146 billion as of June 30, data compiled by Bloomberg show.

While the firm replaced some managers and hired more salespeople to stem the outflows, it stuck with its basic method of stock picking.

“We believe in what we do even if at times the world doesn't,” Mr. Armour said in the 2014 interview.

The firm, founded in 1931 by Jonathan Bell Lovelace, is known for its multiple-manager system, which divides each fund's assets among a number of investors who pick stocks or bonds based on their own research.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Tech tools of tomorrow: Innovations your firms can't live without in 2020

Gadget Girl hits the tech pavilion at Pershing INSITE to see what exciting new tools advisers can't afford to miss.

Video Spotlight

Will It Last As Long As Your Clients Do?

Sponsored by Prudential

Video Spotlight

The Catalyst

Sponsored by Pershing

Latest news & opinion

Brian Block's $4 million bonus was tied to a key metric at ARCP

Prosecution rests case in fraud trial against CFO of American Realty Capital Properties.

Edward Jones is winning the Google search war

Brokerage firm's digital marketing investment helps land it at the top of local and overall search engine results, report finds.

Voya's win in 401(k) fee suit involving Financial Engines bodes well for other record keepers

Fidelity, Aon Hewitt and Xerox HR Solutions are currently defending against similar fiduciary-breach claims.

Vanguard rides robo-advice wave to $65B in assets

Personal Advisor Services, four times the size of its closest competitor, combines digital and human touch.

CFPs, including brokers, may have to adhere to a stricter fiduciary duty

CFP Board revises its standards and aims to beef up fiduciary requirements of certificants.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print