Short-termism: An industry obsession?

A little over two years ago, a report slamming the fund management industry’s approach to portfolio construction and risk was released. The Kay Review of UK Equity Markets and Long-Term Decision Making, commissioned by the Secretary of State for Business, Innovation and Skills, Vince Cable, argued the concern of asset managers – and the basis on which they are monitored by asset holders, advisers, and retail investors – is too short term. The author, Professor John Kay, one of Britain’s leading economists, highlighted that to change the short-term mind set, a major cultural shift would b...