When it comes to making critical decisions on investing, most investors seek answers to two questions: what risks are involved, and what are the opportunities on this investment. Passive index funds, for example, typically, have lower management fees and taxation than active managed funds, such as mutual funds where investors seek a better return by out performing the market.
However, data collected from surveys has shown that over a thousand investors knew in 2016 that “index funds expose them to 100 percent of the volatility and losses during market downturns,” says chairman and CEO of Capital Group, Timothy D. Armour (Tim Armour), on CNBC, Feb. 27, 2017. Armour continues to say that in good and bad markets, Capital Group’s average index benchmarks percentage points were above index benchmarks after the firm’s fund expenses at 1.47.
Tim Armour became chairman of Capital Group in 2015, but Capital Group has been committed to investors for over eight decades.
“Throughout its history, the true strength of Capital Group lies not in an individual, but in the collective talents of all our associates who are aligned behind our mission to deliver superior, long-term investment results to our investors and clients, Armour says July 28, 2015 on the company’s website.
Armour has over 30 years of investment experience with Capital Group, and first began with the firm in Capital Group’s, The Associates Program. In his earlier years, he was an analyst in equity investment and performed telecommunications with service firms not only in the United States, but globally as well. Currently, Armour is an equity portfolio manager at Capital Group in Los Angeles, California, in addition to the firm’s CEO and chairman.
Interest rates and corporate earnings are areas to watch in 2017, says Armour to Jody Johnson on Capital Ideas, Jan. 3, 2017.