Shareholders to Blame for Financial Crisis

Investors are taking too short-term a market view, leaving companies without ownership or guidance, says Scottish Mortgage manager James Anderson

Emma Wall 15 May, 2014 | 9:15AM

Fund managers are almost as much to blame for the banking crisis as bankers – so accuses Baillie Gifford partner and manager of Scottish Mortgage investment trust (SMT) James Anderson.

You can become consumed by greed in London

“We have a profound problem in the fund management industry,” he said. “Increasingly shorter-term investment horizons have left companies without owners. If we just trade share certificates instead of helping out boards and being active shareholders we risk another crisis – and fundamentally lower investment returns.”

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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