Returns from listed equities are increasingly viewed as a commodity. With the average active manager struggling to beat the index, some will ask: why not simply access market returns at the lowest possible cost?
Investment Manager Baillie Gifford believes this logic is flawed as it assumes that investment returns are a given and that all active managers are the same. They are not.
In this keynote paper, partner Stuart Dunbar argues that market returns don't materialise in a vacuum and understanding what influences them can help us become better investors.
- Listed companies are a central part of the system that generates wealth to pay pensions and savings through deploying vast amounts of capital
- Overseeing this deployment is essential and is at the very heart of what it means to be an investor
- Ownership and control mechanisms are breaking down and there are fewer institutional investors that engage, motivate and steward companies
- Active managers have had a difficult few years but strong evidence suggests those who engage meaningfully with companies will outperform in the long term
Read the paper to explore the argument and its implications for your clients' financial outcomes.
Capital at risk.