QUESTION 1 The chairman of the world's largest asset manager said in his 2020 Annual Letter...

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QUESTION 1 The chairman of the world's largest asset manager said in his 2020 Annual Letter to Companies that "The financial world is on the edge of a revolution. He went on to explain that this would imply: O The underprivileged in society demanding that wealth was spread more evenly O That new applications of derivative securities would enable a much more effective income re-distribution O That there would be "a reallocation of capital" as a result of a change in the risk/ reward profile of different types of asset due to market re-pricing That the "winner take all" syndrome would result in the finance industry having only 5 large asset managers and a few specialised niche providers within 5 years. QUESTION 1 The chairman of the world's largest asset manager said in his 2020 Annual Letter to Companies that "The financial world is on the edge of a revolution. He went on to explain that this would imply: O The underprivileged in society demanding that wealth was spread more evenly O That new applications of derivative securities would enable a much more effective income re-distribution O That there would be "a reallocation of capital" as a result of a change in the risk/ reward profile of different types of asset due to market re-pricing That the "winner take all" syndrome would result in the finance industry having only 5 large asset managers and a few specialised niche providers within 5 years.

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