Peter Harrison, head of investment at Schroders, says fund managers need to widen their time horizons and focus on engaging more with companies they are invested in, rather than sell out when the going gets tough.
The travails of the past five years have prompted much soul-searching among active managers. Many have failed not only their clients but society as a whole. Too often they have equated clients’ interests (and their own) with instant gratification. Good companies, shareholders’ returns, and industrial strategy have suffered as a result. We think there is a better way, which can create better results for all, but it will require an honest appreciation of what went wrong and what needs to change. Heart of the problem We believe the heart of this problem is the market’s repeated m...
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