Looking after other people's money is a fine business. The asset-management industry long ago managed to secure a deal whereby its fee income rose in line with the markets; it can earn ever more money by doing nothing. The industry oversees some $64 trillion of assets and, at a conservative estimate, its costs in fees, dealing charges, custody and so on are around 1.5-2% a year-so investors are shelling out $1 trillion a year to the custodians of their cash.
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