Short-termism poisoning pension fund returns, MPs told

Dr Paul Woolley, who runs the Centre for the Study of Capital Market Dysfunctionality, told MPs on Tuesday the "lush returns" enjoyed by pension funds in the 1980s and 1990s were unlikely to return but pension savers could realistically now expect 3% or 4% per year, in real terms. But he said costs associated with fund management were eating into returns, adding short-term investment goals were limiting overall pension fund returns. Woolley told the business, innovation and skills committee: "The reason it is not 3% or 4% is partly due to the costs of the finance sector, which amount ...