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

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

Envestnet Tamarac's Anderson: What's next for fintech?

Envestnet Tamarac is focused on broadening its offerings so it can gather more marketshare and craft more partnerships. Check out what Andina Anderson is examining so the company can do more for advisers.

Latest news & opinion

Morningstar: DOL fiduciary rule reduces inflows to mutual funds with high loads

With the measure's demise, will the SEC's advice reform sustain the momentum?

6 tax strategies for year-end planning

How to help clients maximize their wealth using specific tax strategies before the end of the year.

Ohio National offers buyouts, ends commission trails amid jumbled regulatory oversight of VAs

Jurisdiction is shared between the SEC, Finra and state insurance commissioners. Will any of them step in?

6 mistakes advisers make when onboarding new clients

Starting a new relationship with a client is harder than it looks.

TCA by E*Trade lures Edelman Financial Engines with promise of client referrals

Access to clients through E*Trade's 30 branch offices drew the attention of RIA Edelman Financial Engines.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print