We all love animal analogies and the securities investment world is no exception. The main things that comes to mind with elephants is that they are big, intelligent and can grow very old. In the trading business world, institutional investors are called elephants because of their size and intelligence in making decisions as stewards of other people's money. An institutional investor is a non-bank organization, usually a group of people, that together make decisions to trade securities in such a large number that it qualifies their organization for preferential treatment and lower commissions. Elephants in the wild can get to the water holes whenever they want and everybody will make space for them.
Capital Group is an elephant. Led by Timothy D. Armour as its chairman and principal executive officer, the Capital Group Companies manage over $1.4 trillion in assets, employ over 7,000 people, and has a history that goes back over 80 years. Tim Armour has over 33 years of investment experience, all at Capital Group. He has championed in-house research of the long-term benefits of active fund management. Tim was instrumental in Capital’s decision to lift some of the secrecy around its operations and share more information with the media. He started 33 years ago at Capital when he
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At the time of Mr. Rothenberg's death, Tim Armour was chair of Capital’s management committee and a key deputy to Mr Rothenberg. In October 2015, Janet Chang, CFA, wrote for Morningstar about American Funds, a subsidiary of Capital Group, after its recent Stewardship Grade "A" award. Janet analyzed Capital Group's firm's corporate culture, praising its new chairman, Tim Armour, and the other committee members, for their continuation of the firm's patient and long-term approach, which over its 80-year history has been the distinguishing characteristic of the firm's investment