Take the longer route to higher returns

Short termism by fund managers could threaten investors’ returns and even harm the economy

The risk of fund managers focusing on short-term gains at the expense of better, long-term returns has long been a background concern in the investment community.

But now the fear that investors are losing out has started to overlap with a much broader anxiety, that excessive short termism is undermining the economy - so much so that in October last year, Vince Cable, the UK minister for business, launched a consultation called 'A Long-Term Focus for Corporate Britain'.

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