Long term managers should be able to identify value in multiple places and therefore help clients succeed in the long run. Amour says that smart managers will research companies and determine or estimate those companies’ prospects in the near or distant future. An example is the need in healthcare of baby boomers which appears to be intersecting with innovative therapies. An active approach to this opportunity will involve doing financial analysis to determine the risk-reward situation before investing or advising clients to do the same.
Part of the job of a good manager is being better than the market: especially when the market is suffering. The manager should be able to guard against downturn in the market. It is difficult to find funds that are going to deliver this is owing to the fact that there are multiple funds in the market that are managed actively, yet perform poorly.
Research, conducted by Capital Group, has shown active funds that have low expenses and a good amount of the manager’s money invested in them, beat the benchmark in most cases. Tim says that the industry has many active managers who have repeatedly beaten their benchmarks in the long run.
He encourages investors to apply themselves in trying to identify financial managers of good record.
Tim insists that no one hires average people. According to Tim Amour, there are several active managers in the industry who can help investors achieve more than just average. He likens hiring average mangers to hiring average doctors or average lawyers. Investors, he says, should look for a manager who earns his keep.
Timothy Armour is the CEO of Capital Group. He is also the executive officer and chairperson of Capital Research & Management Company. Tim also serves as chairman of Capital Group’s management committee.
Tim Amour’s 33 year experience has been earned at Capital Group. He started working for Capital Group as part of the associates program and rose to be its chief executive. Tim Armour has an economics degree from Middlebury College, as well as an MBA from Colombia University.
Tim is affiliated to the following institutions and organizations: AMCAP Fund, SMALLCAP, World Fund, Inc. Scotia Global Opportunities Fund, Capital International Funds-Global Discovery Fund, Capital Income Builder, American Fund Target Date Retirement Series- American Fund 2010 Target Date Retirement Fund and The New Economy Fund.