Ever since its creation in Los Angeles in 1931, the Capital Group seemingly has been at the forefront of the national financial services industry. One of the world’s largest and oldest business organizations of its kind, the Capital Group is estimated to have nearly $1.4 trillion dollars in assets.
Though the Capital Group is privately held, the organization still has offices around the world. This makes them one of the true global investment brokers around. The main headquarters are still located in Los Angeles, but Capital Group has over 7,000 employees around the globe and has offices in foreign cities such as Zurich, Madrid, Milan, Honk Kong, Tokyo, Beijing, and Singapore.
The group provides a number of products and services ranging from over 40 mutual funds under its subsidiary American Funds, wealth management for both individuals and businesses, equity planning, and retirement services. Its numerous mutual fund offerings are based out of countries in Asia and Europe as well as North America. In the early 2000s, the Capital Group expanded its retirement services and also offered college saving plans.
The Capital Group has enjoyed success by taking steady long-term view to the business world, something uncommon today. They didn’t invest as heavily into the tech sector during the 1990s and thus were barely affected when the tech bubble burst. Morningstar stated that the Capital Group provided the best return for its investors during the first decade of the 21st century.
In July 2015, the Capital Group’s board of directors elected Tim Armour as its new chairman after previous chairman Jim Rothenberg passed away. Armour had been serving as the chairman of its management committee at the time. Armour brings 32 years of experience in the investment industry and served as an equity portfolio manager. Timothy Armour has spent much of his career with the Capital Group, rising from within after graduating from Middlebury College with a bachelor’s degree in economics.
Given its rise through the Capital Group hierarchy, many observers of the industry feel that Armour is a good choice as a chairman since he is familiar with the organization’s internal workings. Because of that, many believe that he will keep the firm going on its usual course without making drastic changes.
Armour once was quoted as providing advice such as to “find active managers who earn their keep.” Armour wants his managers to look at the fine print of a company’s outlook rather than guess toward the future. In this manner, Armour and Capital Group are aiming to help a company meet their specific financial goals and needs in order to enjoy sustained success.