June 23 2017

Capital Group’s CEO: Retirement Funds Safest in Hands of Active Fund Managers

While Warren Buffet, well known billionaire and philanthropist, believes that it’s safest to put one’s retirement funds in passive index funds. The point of betting a million dollars on the premise that investments will grow more in passive index funds than in the hands of hedge fund managers, Capital Group’s Chief Executive Officer, Timothy Armour, however, completely disagrees.

Now, Armour believes that in all likelihood, Warren Buffet will win the bet—which, by the way, would go to charity if Buffet does win—as Armour admits that active funds can end up being quite costly for investors. And Armour agrees with Buffet’s assertion that retirement funds must become better safety nets for not only for Baby Boomers approaching retirement, but also for members of Generation X as well as Millennials to learn more: https://www.thecapitalgroup.com/our-company/management-team.html click here.

Capital Group’s Timothy Armour believes that active funds are still the best investment for one’s retirement, rather than the passive index funds that Buffet trusts. The key, Armour says, is in finding hedge fund managers that perform exceptionally well. In the long run, when investors place funds in high performing, well-managed active funds, they stand to receive higher returns than if they place their investment in passive index funds.

Armour’s 30 years of experience and expertise in this field back him up. He was named Chairman of Capital Group, one of the biggest fund managers in the world and home to American Funds, on July 28, 2015. Armour graduated from Middlebury College with a degree in economics.

Recently, Armour spearheaded the team that brought about the partnership of Capital Group and Samsung Asset Management, whose aim is the development of asset allocation products as well as to offer the best options for retirement planning.

Late last year, a commentary written by Tim Armour was featured in the Wall Street Journal. In the piece, he reiterated the importance of excellent fund managers—those who do not just check on companies performances in the stock market daily, but actually do due diligence in looking for companies with real value.