There are a lot of industries in the business world today. Investments in such industries necessitate the need to identify product labels for each industry by potential investors. According to Timothy Armour, the intra-industry arguments and debates between “active and passive” investments do not serve the customers best interests.
Timothy Armour observes that many mutual funds provide poor or mediocre long-run returns, in part because of excessive trading and high management fees. At the same time, pitfalls such as opportunity costs and volatility risks are typically ignored or underestimated yet they have a strong influence on the anticipated returns. In essence, it is never about active or passive forms of an investment. Instead, it is about how much you can gain in the long-run from investments where low cost is the driving force.
Timothy Armour is the chairman and CEO of Capital Group. With a bachelor’s degree from Middlebury College, he is also among the best investment managers in the U.S and around the world. His career at Capital Group began in 1983 where he enrolled as a participant in the Associate’s program. Years later, he made his way up the ladder and became the equity investment analyst for the global telecommunications department of U.S service companies before being promoted to chair in 2005 after the demise of Chairman James Rothenberg in 2005.
Armour’s primary goal is to lead the company to greater achievements such as globalization through the application of a robust and stable investment culture. His expansion efforts are manifested through various deals and agreements with foreign countries and brands including Korean-based Samsung. In a bid to collaborate on global management and investment, Capital group has partnered with Samsung Asset Management to improve on areas of product supervision, investment administration, retirement organizations and distribution channels. The partnership is meant to re-design the investment behavior of the Korean market by offering quality and reliable investment options that are profitable in the long-run.
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