The Financial Times featured Michael Johnson's briefing note '80% of fund management industry redundant' on 28 November 2016
"The Centre for Policy Studies has claimed 80 per cent of the fund management industry is "redundant".
The claim followed the recently released Asset Management Market Study conducted by the The Financial Conduct Authority (FCA), which raised concern active fund management is not good value for money for investors after data it collected pointed to a lack of benchmark beating performance.
According to Michael Johnson, representative for the CPS, the consequences for the asset management industry are "potentially devastating" with serious implications for the health of the country's pension funds as reflected in Melbourne Mercer Global Pension Index. This shows the UK’s pensions landscape continuing to slide down the global ranking.
In addition, the UK’s defined benefit schemes now have the weakest funding position in Europe, according to Johnson, and Britain has the highest proportion of company schemes (38%) flagged as being in the weakest 20 per cent of their industry peer groups. "
For the full article visit the Financial Times website