Member

There is an old saying that once you go beyond £1 billion, it is just a lot of money. I accept that you need some scale for the diversified asset allocation needed to optimise risk and reward from equities in the UK, the US, the rest of the world and emerging markets; government, corporate and junk bonds; property; cash; private equity; and other asset classes. That comes in at about £1 billion, possibly £2 billion, but certainly not the £25 billion that the Government appear to be fixated on. At this super scale, everybody chases the same things, driving up a bubble. The largest opportunities are beyond our shores, and that increases systemic risks and damages long-term returns. I will talk about herding on a later group.