Footnotes on page 7.

4. At the end of 1998, Unit Trusts managed about £180 billion (Source: Micropal), while Life Offices managed £700 billion as of the end of 1997 (Source: Total Long Term Business Assets as reported to Insurance Directorate, obtained from SynThyses Life). To arrive at funds under management now, one should note that there is some overlap in the unit trust and life office funds under management figures due to unit trusts run by life offices, and that funds under management by life offices certainly grew during 1998. Taking these two factors into account, I set total funds under management to £900 billion.

5. If investors paid an average MP1* of £1.40 rather than £1 .50, their £900 billion in investment funds would yield the market rate of return on £640 billion (£900 billion/£l.40) rather than (as now) £600 billion. Since the average rate of return on investment funds has been about 10% over the last 10 years, investors would obtain an additional return of £40 billion * 10% = £4 billion.