This morning the Financial Times leads on the Myners Report on Institutional Investment. This argues, from the point of view of a committed Fund Manager, how the system of pension funds, actuaries and fund managers, while quite logical in the short term, produces a system in which British capital is not investing adequately in young start up companies. It needs this to compete effectively as aggregate capital, with the USA and continental Europe.
He proposes that these pension and other funds should sign up to a Code of Practice based on the Cadbury Code, which would create a transparency of objectives. This type of thinking would be quite congruent with the initiative of the UK government in setting up the Financial Services Authority.
Finance capital is by no means opposed to moves towards monopoly and close ties with government.
Chris Burford
London