James Anderson: Investors need more access to private companies

Unlisted firms should be given access, manager urges

Savers should be provided with exposure to private companies, despite the fallout from the suspension of the LF Woodford Equity Income fund, according to Baillie Gifford's James Anderson.

Anderson, who manages the £7.5bn Scottish Mortgage Investment Trust, believes private companies will account for the majority of wealth creation in a decade's time. It is important, therefore, asset management companies give investors affordable access to these unlisted firms, he said. "The big issue for current day stockmarkets is that, everywhere in the world, the vast majority of new capital investment and the vast majority of new knowledge-based investment is going on in private markets," Anderson said at an event in London last week. Why investment trusts must tread carefully ...