US fund managers 'more focused on flows than returns'

US fund managers have "failed" their clients by focusing on preserving their careers rather than growing clients' capital, according to Baillie Gifford's Ian Tabberer.

The co-manager of the £429m Baillie Gifford American fund said the popularity of passive funds over active investing in the US market is due to the fact active managers "have not tried". Fund houses prefer to preserve flows rather than take active bets which may lead to underperformance in the short term, he argued. Tabberer (pictured) told an audience at Investment Week's US Breakfast Briefing on 5 November: "Mutual houses would rather show some relatively steady performance against the index, because that keeps funds flowing in. "But if you want to be a truly active manager, you ...