A Single Focus With Consistent Results

Jonathan Lovelace, in 1931, started his new investment firm that would eventually become Capital Group. Lovelace is credited with developing a new management system involving mutual funds and accounts, called The Capital System. The new system assigns multiple managers to an account, thereby removing the possibility of a single person affecting a fund’s results. Jump ahead five decades to 1983 and meet Timothy D. Armour. Tim holds positions as Chairman, Director, and Principal Executive Officer at Capital Research and Management Company. Further, Tim holds a Bachelor’s Degree in Economics from Middlebury College in Vermont, and joined Capital Group immediately after graduation and never left.

Today, Tim Armour’s experience is vast and extensive, serving him very well over many years, and on July 28, 2015, after the sudden and expected death of Chairman, James Rothenberg, the Board of Directors of Capital Group elected Tim as Chairman of Capital Group. Tim Armour is highly respected worldwide because of his knowledge and experience in investments.

The concern over the slowdown caused global stocks to lose value, and together with Chinese stocks hurting and their currency devaluation, added to the fear that China’s outlook is deteriorating. The combination of events could affect global trading in Japan, Europe, and even the United States. Tim’s opinion on this matter that the U.S enjoyed six years with a bull market, and saw improving markets in other parts of the world as well. According to Tim, the “market correction,” as he states, is not unexpected. He further states that periodic corrections are healthy for the markets because they remove pockets of excess.

In another development, Capital Group signed an agreement in October 2016 with Samsung Asset Management, designed to allow for the creation of new products for Korean investors. Capital Group’s plan is to present a version of their existing 42-year-old New Perspective fund in Asia. The agreement will also work to open to Asian investors, three global strategies currently in existence, to future investments. Mr. Armour’s comment about this development states that “the broader plan for this venture is to co-design investment solutions that will fulfill the savings and retirement, along with the insurance needs, of the Korean investors.”