Capital Group's board has approved a long-planned management transition by electing leaders to new roles that will assume the responsibilities currently handled by chairman and CEO Tim Armour and vice-chair and president Rob Lovelace.
Capital Group is the parent company of American Funds.
Armour and Lovelace will step down from Capital Group's management committee in October, the active investment manager said Thursday.
The board of directors has elected current Capital Group management committee members to the following new senior roles:
- Mike Gitlin will become Capital Group president and CEO and management committee chair.
- Martin Romo will become Capital Group chairman and chief investment officer.
- Jody Jonsson will become the firm's vice chair and will continue as chair of both the Capital Research Management Co. and the CRMC executive committee.
All transitions will take effect on Oct. 24.
The new senior leaders will work with other members of Capital Group's management committee to deliver on the firm's existing long-term strategy. The changes reflect a leadership succession plan that has been in motion for many years, the company said.
"Throughout our over 90-year history, continuity and consistency have been a hallmark of how we manage assets for clients, and formal succession planning is critical to delivering superior, long-term investment results for them," said Armour, who will retire at the end of 2023 after a 40-year career with Capital.
"I started at Capital right out of college, as many here do," he added. "It has been a privilege to be part of building and passing along a strong and unique culture. I am proud to see how well-positioned Capital is and am confident the next leadership group will continue to deliver on our mission, helping people achieve their long-term financial goals."
Rob Lovelace, who will continue with Capital Group as a portfolio manager, said, "Over the decades, Capital Group has thoughtfully grown to ensure the business is healthy and built for the long term. It is with that same consideration and care that Capital has selected our next leaders. Mike, Martin and Jody are people I have worked with for years and greatly admire."
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