Capped charges do not equal high returns

The Government is going to have to learn that it might be able to dictate charging standards but it cannot dictate returns to investors. If it wants an insight into how stakeholder might work out it could do worse than to take a look at its proto-stakeholder effort: the Cat standard. During rising markets the difference between 15% returns and 18% returns seemed negligible to investors. That period now seems well and truly behind us. Today the difference between a return of 5% and 8% is more than noticeable, especially as in many sectors the smaller spread is balanced between negative ...