Capital Group and Samsung Asset Management’s Partnership Agreement

Timothy Armour was named Chairman of Capital Group in July. In Capital Group’s 85-year history they have acquired a reputation for sticking to the traditional security selections and the avoidance of products that lead away from that strategy, which means that they do not deal in indexing or exchange-traded funds.

This is a multi-manager system that takes each fund’s assets and divides them among numerous investors who pick stocks or bond by doing their own research.

On October 14, Capital Group signed an agreement with Samsung Asset Management in Seoul, Korea to develop products for the Korean investors. They plan on offering Samsung a version of their 42-year-old New Perspective fund in Asia. They will also open three other global strategies that are already in existence to the Asian investors in the future.

This agreement will facilitate a $1billion expansion that will include the cost of sales and marketing, the building of a technological infrastructure that will support the growth. The long term goal is to more than double the assets in Asia and Europe, that will lead to managing $50 billion in each of the regions.

Related: Capital Group Parent Names Armour Chairman, Replacing Rothenberg.

Samsung’s CEO Sun-hoon Koo believes that the partnership will pave the way for his company to be able to upgrade their active equity investments and to implement life-cycle assets any for product strategies.

In a news release, Timothy Armour said that the broader plan for this venture is to co-design investment solutions that will fulfill the savings and retirement, along with the insurance linked needs of the Korean investors.

It seems that China was one of the to catalysis, and maybe the most significant to the selloff, with their unexpected decision to devaluate their currency, which was a shock to financial markets. Now the countries of Australia, Hong Kong, and Japan along with Europe have to deal with the potential decline in their export activity. Tim Armour believes that this market correction was not unexpected. Having periodic corrections is healthy for the market since it removes pockets of excess.

Timothy Armour graduated from Middlebury College in Middlebury, Vermont with a bachelor’s degree in economics. He then joined the Capital Group in 1983 and has been with then for 33 years. At the start of his career with them, he covered global telecommunications, then became an equity investment analyst, working in their Associates Program. Timothy Armour is now the Chairman, Director and Principal Executive Officer at Capital Research and Management Company where his job is Equity Portfolio Manager and their Chairman.

Click here to learn more about Timothy Armour and his role at the Capital Group.