Capital Group’s Tim Armour Makes The Case For Actively Managed Funds

Warren Buffett for years has recommended that investors simply put their money into a passive index fund that follows the S&P 500 and to ignore actively managed funds. His reason for this is that, especially due to the higher fees charged in actively managed funds vs. passive, most managers of funds can’t produce a larger return than what the passive fund can.

Tim Armour, the Chairman and Chief Executive Officer of Capital Group Companies, Inc., makes the case that actively managed funds do have a place in most investor’s portfolios.

Armour agrees that most actively managed funds charge far too much in fees and deliver mediocre results as best. Those are best avoided by investors. He argues, however, that an actively managed fund with low fees, that don’t trade excessively, and that the manager has his own money in can and do outperform passively managed funds. The reason for this is that, unlike the active manager who don’t “earn their keep”, these managers do their proper research. They also have the ability to mitigate losses when the markets fall while a passive fund will fall along with the market.

Tim Armour was elected as Chairman of the Board at Capital Group in July 2015. Capital Group’s prior Chairman, Jim Rothenberg, had unfortunately passed away after an illness. Armour had already been serving as the Chairman of the company’s management committee and the Chairman of Capital Research and Management Company. He has spent his entire professional financial career with Capital Group, first starting in the company’s The Associates Program.

Armour continues to work as an Equity Portfolio Manager at Capital Group. Among the other positions he has held is Equity Investment Analyst where he focused on American service companies and global telecommunications. In 1983 he graduated from Middlebury College where he earned a Bachelor’s Degree in Economics.

Brian Bonar and the Professional Networking Community Award

Brian Boner is the CEO and Chair of the Dalrada Financial Corporation. He was named winner of Cambridge Who’s Who executive of the year in the year 2010. While this is a great award, it is crucial to know that only 2 men and 2 women are named top executives of the year. The committee that selects these men and women lays focus on leadership skills, academic accomplishments, and professional achievements. Brian won the award because he met all these requirements.

Brian’s Experience

Brian has more than 30 years experience in finance especially professional management. He has been CEO and chair at Dalrada Financial Corporation for more than 10 years. This experience makes it easy for him to oversee the running of his company. He is in charge of aftermarket goods as well as looking into employer/employee benefits at his company. DFC is a marketing liaison that offers many employee programs aimed at boosting business growth.

Under Brian’s leadership, the company has managed to assist many clients protect their assets and manage their finances. The corporation handles risk management insurance (worker’s compensation and business liability), financial management, employee benefits, promotional and business management services. Apart from chairing DFC, he has been CEO and chair at Trucept Incorporated (or former Star-Trek Solutions) since 2010.

More on Brian Bonar

Brian Bonar is a very famous investor within San Diego, CA. not only is he an investor, he is also a finance enthusiast who loves to share his skills and knowledge in this area with other people. He is an American Finance Association Member. He has multiple skills that have played a great role in the success of his career. Some of the areas he has specialized in include:

  • competitive assessments
  • sourcing
  • private equity
  • angel investing
  • mergers & acquisitions
  • business planning
  • small businesses
  • entrepreneurship
  • process improvement
  • restructuring
  • strategic partnerships
  • marketing techniques
  • due diligence
  • startup organizations

Brian got his bachelor’s degree at university of Strathclyde. This university is in Glasgow. He proceeded to do his masters degree and PhD in the UK in Stafford University. When he started off his career, he used to direct technology sales in August 1992-April 1994.

He was then promoted on many occasions in his career because of his determination and work ethics. In the month of April 1994, he became vice president at Dalrada’s marketing department. In September 1994, he became executive V.P. From the year 1995-1997, Brian was the director at DFC prior to becoming president and chief operating officer. In the year 1998, he became the CEO at DFC. In 1999, he became the board’s chairman.