Actual Investing - The Importance of Active Management for Healthy Capitalism
In this keynote paper, Stuart Dunbar, partner at Edinburgh based asset management firm Baillie Gifford, explains the importance of active management to a healthy capitalist system. It is ‘quality shareholders’, he argues, that nurture the great companies that grow investments.
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 detailed keynote paper, partner Stuart Dunbar argues that market returns don’t materialise in a vacuum. While costs matter, a well-functioning capital system needs deeply engaged ‘quality shareholders’. Our savings and pensions depend on them.
Dunbar contends that, just as markets exist to direct capital towards companies whose products and services create prosperity, its deployment within listed companies is central to productivity growth and wealth creation. Read the paper to explore the argument and its implications for your clients’ financial outcomes. Capital at risk.
Offered Free by: Baillie Gifford