MONDAY 14 DECEMBER 2015 WORLD BUSINESS NEWSPAPER EUROPE

Angela The FT person of the year Goliaths of guff

Merkel How Germany’s cautious chancellor defied
prudence to shape a bolder Germany — PAGE 7
Exposing the masters of jargon
in 2015 — LUCY KELLAWAY, PAGE 12

Obstacles to United front French voters turn out

en masse to repel Le Pen’s far right
Briefing
i Fifa-probe banks face reporting charges

climate deal as US prosecutors are threatening to hit major banks

with criminal charges for failing to submit reports
of suspicious activity as part of the Fifa corruption
probe, people familiar with the case said.— PAGE 15

business plays
i US urges ditching of Doha trade talks
Washington trade tsar Michael Froman has used an
article in today’s FT to call for the Doha Round of
trade talks to be abandoned, saying it “simply has
not delivered”.— MICHAEL FROMAN, PAGE 9

down impact i Big lenders slash 100,000 jobs in 2015

Eleven big European and US banks have cut
100,000 jobs this year, more than 10 per cent of
their total workforce, research carried out by the
FT has shown.— PAGE 15; CULL CONTINUES, PAGE 16

3 World leaders praise breakthrough i Exchange speaks out on Zuma move

3 US Republicans highlight opposition
PILITA CLARK — PARIS
DEMETRI SEVASTOPULO — WASHINGTON
The obstacles facing this weekend’s glo-
bal climate change accord were thrown
into relief last night when businesses
and government officials played down
its impact and US Republicans under-
lined their opposition.
The Paris agreement, which requires
all countries to regularly publish plans
to deal with global warming, was hailed
by international leaders as a turning
point after more than 20 years of effort
to make this century the last to be pow-
ered by fossil fuels.
German chancellor Angela Merkel
said the deal was “the first time that the
entire world community has obligated
itself to act in the battle against global
climate change”, while Pope Francis
cautioned it would need the “concerted
effort and generous dedication”. It was
adopted by nearly 200 nations.
But coal and oil industry executives
shrugged off any suggestion the new
agreement sealed in Paris on Saturday
night would have any immediate
impact on their businesses. The goals
include driving down carbon dioxide
emissions from fossil fuels as soon as
possible to limit global warming to “well
below” 2°C from pre-industrial times
and perhaps as little as 1.5°C, a target
requiring much deeper emissions cuts
than most countries are planning.
Amber Rudd, the UK energy and cli-
mate change secretary, described the
1.5°C goal as merely “aspirational” while
defending the UK government’s deci-
sion last month to scrap £1bn in funding
The Johannesburg Stock Exchange has
made a rare foray into politics to
warn over the economic damage
for carbon capture systems that could triggered by President Jacob Zuma’s
hold emissions down. “I don’t think it decision to remove his respected
was a mistake,” she said. finance minister.— PAGE 6
Benjamin Sporton, head of the World
Coal Association, said he did not see the i Turkish people traffickers face pressure
new agreement spurring a “massive Security forces have arrested nearly 800 people
change at the moment” for companies suspected of being involved in people smuggling
that produce coal because many devel- since the agreement with the EU to manage the flow
oping nations plan to keep burning it. of migrants, but the gangs are adapting.— PAGE 3
He said the pact was likely to force
governments to focus more on carbon i Argentine president targets low reserves
capture systems because they would be The “dangerously” low level of foreign reserves will
vital for meeting their goals. be among the most urgent problems facing new
The American Petroleum Institute president Mauricio Macri as he knuckles down to
said it was still reviewing the accord, but tackling his “complex” inheritance.— PAGE 6
Amjad Bseisu, chief executive of
EnQuest, a UK oil explorer , said the oil i Berlin push to examine car software
industry had more immediate concerns Carmakers in the German market will be required
beyond the Paris Agreement. to open up to regulators the engine software of new
“This is a very slow process. We Marine Le Pen yesterday after voting in Hénin-Beaumont, France — Chesnot/Getty Images models, under a package of measures in the wake of
already look at our carbon costs, but the Volkswagen emissions scandal.— PAGE 16
right now the industry has other chal-
lenges [with the falling oil price].” ANNE-SYLVAINE CHASSANY cent by the end of the day, up 9 “The result shows the FN’s Datawatch
PARIS
In the US, Mitch McConnell, the points from the first round. The isolation,” Bruno Cautres, a
Republican Senate majority leader, French voters turned out in first exit poll showed that the Sciences Po professor, said. “It
questioned the Paris deal, saying that droves in an apparent attempt National Front had suffered a can’t forge alliances to win GDP per capita growth Lack of
the US portion relied on measures to repel the National Front, heavy defeat in Nord-Pas-de- actual executive mandates in 1990-2015, average annual % change structural
championed by president Barck Obama Calais and Provence, where local elections. Its only way to 0 1 2 3 4 economic growth
with exit polls signalling that S Korea has contributed
that were being challenged in the courts. the far-right party could fail to they scored more than 40 per progress is by appealing to Ireland to political
But World Bank president Jim Yong win control of any regional cent in the first round. French voters disenchanted by Australia
UK disillusionment
Kim said the deal was “a game-changer” governments in yesterday’s The vote took place after the left and the right.” Netherlands in France. The
that should prompt companies to shift polls had consistently shown The anti-immigration party US
local elections. Austria growth in French
to low carbon business opportunities. the National Front in the lead has extended its reach since Spain GDP per capita
Germany
Still, many scientists questioned the Estimates showed a surge in across France as a whole. The Marine Le Pen succeeded her Canada since the 1990
prospect of governments being able to voting, with turnout up on last Socialist party, whose support father and party founder Jean- Belgium was the lowest
Portugal
reach either the 2°C or 1.5°C goal in the week’s first round by more than has slumped since triumphing Marie Le Pen in 2011, by soften- Denmark among any other
France
agreement. 7 percentage points to 50.54 per in the last round of elections in ing the xenophobic rhetoric Greece
major European
Climate talks page 2 cent at 5pm local time. 2010, withdrew its candidates and developing a statist plat- Italy country except
Source: IMF Italy and Greece
Editorial Comment page 8 Ifop, a pollster, estimated in two regions to avoid diluting form designed to lure blue-col-
Jeffrey Sachs page 9 that it had risen to about 59 per opposition to the far right. lar workers.

Economists see up to 4 more Fed rises

following Wednesday’s expected move
ERIC PLATT — NEW YORK Chinese officials have acknowledged points in 2016 and a further 100 in 2017.
SAM FLEMING — WASHINGTON
Fed rises would increase pressure on the On the margins, two economists
The Federal Reserve is set to follow a renminbi and contribute to outward expect the Fed to lift its benchmark rate
much-anticipated interest rate rise this flows of capital, an outlook shared by by as many as 300 basis points over the
week with two to four more increases many other developing economies. The next two years. One cautions the central
UK looks at nationalising next year, leading economists say. European Central Bank’s chief econo- bank may only increase rates once more
Rolls-Royce submarine unit mist, meanwhile, told the FT his institu- after December — by just 25 basis points
Markets are bracing themselves for the tion stood ready to respond if the Fed’s — over the next 24 months.
Report i PAGE 15 first US rate rise in almost 10 years on actions increase global borrowing costs. Fed chair Janet Yellen has suggested
Wednesday. A Financial Times poll of 51 The Fed has gone to great lengths to that moves will be gradual, but it is not
top economists highlights the stakes as prepare the markets for a quarter-point clear whether there will be formal guid-
Austria €3.60 Macedonia Den220 any increase would have profound con- rise at this week’s meeting — a move ance to that effect in the Fed statement.
Bahrain Din1.7 Malta €3.50
Belgium €3.60 Morocco Dh43 sequences for the world economy, par- expected by all but one of the econo- Several economists warned the Fed’s
Bulgaria Lev7.50 Netherlands €3.60
Croatia Kn27.50 Nigeria Naira715 ticularly emerging markets. mists surveyed. But there is no such ability to increase rates would be con-
Cyprus €3.50 Norway NKr34
Czech Rep Kc100 Oman OR1.50 While the Fed’s previous September consensus over how high interest rates strained by the effect of a slowdown and
Denmark
Egypt
DKr32
E£20
Pakistan
Poland
Rupee 250
Zl 18 forecasts pointed to four rises of a will ultimately go. dollar appreciation against other cur-
Finland
France
€4.10
€3.60
Portugal
Qatar
€3.50
QR15 cumulative 100 basis points next year, Among those polled, 24 per cent rencies. Overall, they put the odds of a
Germany
Gibraltar
€3.60
£2.70
Romania
Russia
Ron17
€5.00 markets have priced in a more gradual expected two rises next year of 25 basis technical recession in the next two years
Greece
Hungary
€3.50
Ft990
Saudi Arabia
Serbia
Rls15
NewD420 tightening process, because of doubts points each, 39 per cent expected three at roughly 15 per cent and the probabil-
India
Italy
Rup170
€3.50
Slovak Rep
Slovenia
€3.60
€3.50
over the US economy’s capacity to rises and 30 per cent forecast four rises. ity that the Fed would have to cut rates
Kazakhstan
Kenya
US$5.50
Kshs300
Spain
Sweden
€3.50
SKr37
weather tighter monetary policy and Overall, the median projection in the FT back to zero at 20 per cent.
Kuwait
Latvia
KWD1.50
€6.99
Switzerland
Tunisia
SFr5.90
Din7.50
potential turbulence abroad. poll is for the Fed to lift rates by 75 basis ECB ready to act page 4
Lebanon LBP7500 Turkey TL10
Lithuania €4.30 UAE Dh15.00
Luxembourg €3.60

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2 ★ FINANCIAL TIMES Monday 14 December 2015

CLIMATE TALKS

Big polluters see no short-term change

Expert reaction

Huge shift
Oil executives say their immediate investment choices have already been formed by national laws
in sources of
biggest energy suppliers, welcomed the weekend,” said Jonathan Grant, a direc- the world changing its energy mix, the European network of institutional
energy needed
to meet aims,
MICHAEL STOTHARD — PARIS
KIRAN STACEY — LONDON
deal but said that to make a real differ- tor in PwC’s climate change team. “The country could phase out the use of fossil investors with €13tn in assets, said:
The international accord to limit green- ence we “need a stronger pan-European sharp end of the agreement is in the fuels by 2050. He told a conference hall “This agreement provides an unequivo-
house gas emissions signed in Paris over
the weekend is unlikely to change
economic choices for big polluting
price for carbon”.
Business has been pushing for a global
carbon price to be part of the agreement
national plans.”
Some figures have predicted huge
changes ahead. Lord Browne, the
in Paris that the kingdom planned to
become a “global power in solar and
wind energy” instead.
cal signal for investors to help escalate
the development of low carbon infra-
structure.”
say scientists
industries in the short term, many exec- in Paris, but in the end such a price was former chief executive of BP, said last Many business leaders over the week- John Kerry, US secretary of state, said
utives say. only given an oblique mention as one year that energy groups faced an “exis- end said that the biggest impact of the that the agreement was “sending a criti- CLIVE COOKSON — SCIENCE EDITOR
Oil industry officials told the Finan- way nations can help meet emission tar- tential” challenge from climate change climate deal would be less about dis- cal message to the global market place”,
To achieve the grand ambitions set out
cial Times the deal would not affect gets. and the expected energy transition couraging fossil fuels than encouraging adding that only by mobilising trillions
in the Paris climate accord will require
their immediate investment choices, Over time the agreement to keep glo- away from fossil fuels. investors to support low carbon tech- in investment could emissions be
huge changes over the next few dec-
already shaped by national environ- bal temperature rises “well below 2C” Coal companies have increasingly nologies. reduced.
ades in the energy sources we use for
mental legislation. and make the world economy carbon been the target of divestment cam- “The global market for low carbon Alongside the Paris agreement other
transport, heating, lighting and the
A senior executive at one European neutral in the second half of the century paigns, with the French government goods and services is already worth initiatives were launched to try to shift
provision of goods and services.
utility company with coal assets, who should lead to growing pressure on cutting state support this year. Groups $5.5tn a year and this deal will turbo- capital towards renewable sources.
did not want to be named because it was heavy-emitting industries. But this is to such as French oil and gas group Total charge the amount of capital chasing India and France, for example, With global temperatures already 0.9C
not “in vogue” to bash the deal, said: an extent hypothetical, at least at have been diversifying into renewable new low carbon investment opportuni- launched a global alliance to mobilise above pre-industrial levels, restraining
“We are not too worried to be honest, it present, since the deal relies on volun- energy. ties,” said Abyd Karmali, managing $1tn worth of investment towards the overall rise this century to 1.5C, the
does not change much right now.” tary national commitments. Ali al-Naimi, the oil minister of Saudi director for climate finance at Bank of developing solar power around the new aspiration, is monumentally chal-
Keith Anderson, chief corporate “The immediate implications for Arabia, the world’s largest crude America Merrill Lynch. world. lenging, climate scientists say. But they
officer at Scottish Power, one of the UK’s business have not changed over the exporter, said earlier this year that with Stephanie Pfeifer, chief executive of a Hail the agreement page 9 are generally reluctant to sound too neg-
ative about a political agreement that is
better than most had expected.
“Some are saying that 1.5C is an
impossible target. It is not,” said Piers
Paris pact. Transparency move Forster, professor of climate change at
Leeds university. But Professor Kevin

Teeth of accord lies in emissions scrutiny Anderson of Manchester university

Monitoring system should
make it easier to see how
countries curb their pollution
PILITA CLARK — PARIS
The fact that it took the world’s govern-
ments so many sleepless nights of
intense haggling to seal the Paris climate
accord on Saturday night is in many
ways baffling.
The 12-page pact will be legally bind-
ing for the countries that go on to sign it
and is the first new global climate deal in
18 years. But it only requires countries
to “communicate and maintain” plans
to cut greenhouse gas emissions, as
opposed to meeting any targets in those
plans. And the system to make sure gov-
ernments comply with its provisions is
to be explicitly “non-adversarial and
non-punitive”.
The deal pays lip service to the idea of
a global carbon price and lays out
ground rules that could help link up
existing emissions trading schemes, but
it does not require an international
price to be set.
Nor does it say fast-growing emissions
from airlines, or ships must be cut,
despite EU efforts to insert a clause
aimed at reaching such a goal. It sets a
goal for countries to collectively keep
global temperature rises to “well below”
2C from pre-industrial times and “pur-
sue efforts” to keep warming below 1.5C,
suggesting carbon dioxide pollution
from burning fossil fuels that cannot be
absorbed by natural carbon “sinks”,
such as forests, or carbon-capturing
technology, should be phased out in the
second half of the century.
But these are only goals. The teeth in
the accord, to the extent there are any,
instead are the obligation it places on all
countries — rich and poor — to resubmit
their voluntary emissions-cutting com-
mitments every five years, probably
from 2020, and to do so in a way that has
never been done before. At present,
there is a two-tiered UN system of rules
for reporting and checking up on coun-
tries’ volume of emissions. It is much
stricter for developed countries than
those the UN classed as developing in
1992. The latter group includes China,
whose 27 per cent share of global carbon
From left: UN dioxide emissions dwarfs that of the US
climate chief (15 per cent) and EU (10) combined.
Christiana The agreement establishes a new,
Figueres, UN more common reporting and monitor-
secretary ing system that should make it easier to
general Ban see how much all countries are emitting
Ki-moon, and what they are doing to curb their
French foreign pollution. This may be more significant
minister than it first appears. The last legally
Laurent Fabius, binding global climate accord, the 1997
and French Kyoto protocol, only obliged a few
president wealthy countries accounting for a
François small share of global emissions to meet
Hollande, at pollution reduction targets, and failed
the climate talks to stop emissions rising.
on Saturday The Paris agreement may not require
Francois Mori/AP
countries to meet targets (few would
have agreed to it if it had) but it does
oblige all nations to at least subject their
plans to scrutiny every five years in a far
more transparent manner than most
have ever done before. In return, devel-
oping countries wanted the pact to
oblige wealthy states to deliver at least
the $100bn a year by 2020 they had
already promised to help poor ones cope
with global warming, and larger
amounts in later years.
The US and most other developed
countries balked at including this sum
in the Paris agreement itself. But the
pact does commit them to provide more
climate finance to poorer nations and an
adjoining decision of the Paris meeting
says they should set a goal of more than
$100bn a year by 2025.
France’s president François Hollande
offered a taste of what could lie ahead on
Saturday night when he announced he
would revise his country’s existing car-
bon reduction targets before 2020 and
invited other nations to join him.
His did not find many immediate tak-
ers. Even the US, one of the countries
that pushed hardest for the Paris agree-
ment, seemed to be caught off guard by
Mr Hollande’s commitment. “It’s cer-
tainly a bold and welcome action by
‘It’s certainly President Hollande,” said a senior US
administration official on Saturday
a bold and night. But US President Barack Obama
welcome had been working “flat out” to meet its
action by existing carbon reduction goals, he said,
adding: “I wouldn’t expect those targets
President to be revised.”
Hollande’ The accord will be open for signature
from April next year and will only enter
Senior US force once at least 55 countries account-
official ing for at least 55 per cent of global emis-
sions have approved or ratified it.
US Republican Party lawmakers have
vowed to block the first tranche of the
$3bn of climate finance the Obama
administration offered ahead of the
Paris meeting, unless it abandons plans
to wave through the accord by executive
Follow the agreement, and submits it to a hostile
debate Senate for consent. With the US produc-
Latest news and ing about 15 per cent of the world’s car-
analysis of the
deal bon emissions, the Paris agreement is
likely to proceed more smoothly if such
ft.com/cop21
legislators do not prevail.
warned: “There is only a slim chance of
maintaining the global temperature rise
even to below 2C.”
Progress will depend on financial
incentives to wean the world economy
off fossil fuels, combined with intensive
research and development of non-car-
bon energy sources. The economic chal-
lenge is to find a way to levy a substan-
tial “carbon fee” through a market
mechanism and/or taxation, which
would raise the cost of coal, oil and gas
while demand for them was falling.
The scientific and technical challenge
is to continue to drive down the cost of
alternative sources, particularly solar
and wind power but also nuclear, while
improving the technology for distribut-
ing and storing energy.
Perhaps the greatest need is for better
batteries that store electricity with
much higher density and charge up
much more quickly than those available
today. They would not only solve the
“intermittency problem” of solar and
wind power but also enable electric
vehicles to surpass the range and per-
formance of petrol and diesel engines.
For shipping and particularly air
travel it will be harder for alternative
fuels to beat the convenience of liquid
hydrocarbons. While manufacturers
such as Airbus are beginning to experi-
ment with electric aircraft, these are
unlikely to replace liquid-fuelled airlin-
ers for several decades. However, plant-
derived biofuels may be able to substi-
tute for fossil fuels in transport.
For people living in sunnier parts of
the world, only a relatively modest
improvement in technology would be
required for a combination of solar-pho-
tovoltaic cells and night-time battery
storage to provide an economic and reli-
able household electricity supply.
On nuclear power, many scientists
part company with the green campaign-
ers with whom they have made com-
mon cause on other issues. They see a
new generation of smaller and less
expensive nuclear power stations,
downsized from today’s multibillion-
dollar monsters, as a valuable contribu-
tion to non-carbon electricity genera-
tion. In the long run there could be a role
for nuclear fusion reactors.
In a carbon-neutral world, any power
stations built to burn coal, oil and gas
will have to scrub carbon dioxide out of
their emissions through carbon capture
and storage technology. Whether this
can be achieved in a practical and
affordable way remains to be seen.

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French diplomacy
Fabius praised for steering world to successful conclusion
MICHAEL STOTHARD AND
ANNE-SYLVAINE CHASSANY — PARIS
Ten minutes before the Paris climate
accord was set to be agreed, the culmi-
nation a year of fraught negotiations,
the Nicaraguan delegation decided
they still had problems with the text.
The Chinese, the Indians, the US and
Europe had decided they were happy.
The vulnerable island nations had
agreed. The 10,000 delegates from 195
countries were ready to open the cham-
pagne.
But in the main hall where they had
all gathered, Nicaragua took advantage
of a technical delay and said they
wanted to speak up, prompting fears
that this could delay or even derail the
process on its final day.
Laurent Fabius, the French foreign
minister and president of the summit,
had to act fast. He cut his conversation
with the Nicaraguan delegation short,
got up on stage and speaking as quickly
as he could, said, “I am looking at the
room, I see the reaction is positive, the
Paris climate accord is accepted!”
The gavel went down. The whole hall
erupted in applause. Paul Oquist, the
Nicaraguan delegate, was flabbergasted
by the sleight of hand. But by that point,
the deal was done.
This was just one example, according
to negotiators at the conference speak-
ing to the FT, of how Mr Fabius and the
formidable French diplomatic machine
steered the conference to a successful
conclusion.
Throughout the summit, even the
most belligerent of delegates took every
opportunity to publicly praise the
former French prime minister for his
management style, saying they felt
respected and listened to.
“Laurent Fabius, the world should
thank you for you tireless work and
your patience,” said Venezuela’s Claudia
Salerno while Indian delegate Prakash
Javadekar said: “I must congratulate
you [Mr Fabius], your patience.”
It was in sharp contrast to the Copen-
hagen summit in 2009, where delegates
were fighting for much of the two weeks.
“The Danish did not play their role as
facilitators very well, with bad food, bad
location and bad organisation,” said
François Heisbourg, special adviser at
the Foundation for Strategic Studies in
Paris.
“But this is the kind of thing the
French are very good at, and it worked
very well here. Of course, Fabius had an
important role, managing things at the
coal face,” he said.
Mr Fabius mobilised the whole
French diplomatic corps to help get the
deal done, in the run up to the event
holding 900 climate-related events
It was in sharp contrast
to Copenhagen where
delegates were fighting for
much of the two weeks
locally with government officials, and
personally visiting most countries.
“I have been asking recently where is
Laurent Fabius? And they always tell me
that he is on a plane, getting a climate
deal,” said François Hollande, the
French president, on Saturday night.
During the event itself, Mr Fabius was
sometimes a hard task master. On
Thursday night he told all negotiators
that if there were any problems, he
would take them into a corner and give
them 30 to 45 minutes to settle it.
“We felt a bit like children being led
away,” said one delegate.
He also heaped on the pressure. On
Saturday at midday President Hollande
gave a flowery speech to the delegates
about saving the world as if the deal was
done.
But, at that point, still none of the del-
egates had read the final text, which did
not come out until 1.30pm. “Nice
speeches, but let’s wait to see the text,”
said Vivian Balakrishnan, the Singapo-
rean negotiator, on leaving the hall.
Some delegates said the trick put
undue pressure on everyone to accept
the final text. But it seemed to work, and
the text won approval.
Still, there was a problem on Saturday
morning. There had been a mistake — a
“should” swapped for a “shall” — which
could have forced US President Barack
Obama to seek US Senate approval. This
delayed proceedings until Saturday
night, starting rumours that the deal
was falling apart. In the end it was added
as a technical addendum, and with
some quick talking the deal was done.
“A small gavel but I think it can do
great things,” Mr Fabius told the cheer-
ing crowd.
Monday 14 December 2015
Smuggling
rings struggle
to stay afloat
Turkish police pressure sees
smaller groups squeezed out
as criminal gangs consolidate
MEHUL SRIVASTAVA — CESME AND
ISTANBUL
Abdul Naseer had spent more than a
month sneaking through the Afghan
and Iranian borders to get to Cesme, a
small beach town in Turkey within
swimming distance of Greece.
But as the 22-year old shivered in the
cold on a December morning, those last
few hundred metres seemed nearly
impossible — the water was cold, the
winds were fast, and the smuggler he
had paid $800 for a spot on a boat was
nowhere to be found.
It had been a week since any of the 40-
person, rubber boats that have become
the primary carriages for refugees to the
European Union had left that beach, he
said. About 1,200 people milled on the
beach, burning trash for warmth and
taking their children down to the spar-
kling blue water to gaze at their goal.
Since Turkey signed a preliminary
agreement with the European Union to
‘It’s getting difficult. Not
impossible. Difficult.
We will manage’
The Doctor, a people smuggler
help manage the flow of irregular
migrants, the criminal gangs that carry
out most — if not all — of the smuggling
in Turkey have found themselves, for
the first time, under sustained pressure
from the police. Nearly 800 people have
been arrested, said Himmet Uygun, who
heads migration policies for the prov-
ince of Izmir, and 450 convicted.
“It’salearningprocess—wehavenever
had to deal with anything like this
before,”hesaid.“Nowwearetakingstrict
measures, and they know — if they get
intothisbusiness,theywillbecaught.”
While in places such as Cesme, the
immediate impact has been obvious, it
has barely dented the daily flow of
migrants to Greece: almost 40,000
arrived in the first 10 days of December
alone.
Instead, interviews with nearly a
dozen people involved in the trade
reveal that the smuggling business is in
the middle of a rapid adaptation, one
that shows the resilience of the lucrative
trade and how difficult it will be for Tur-
key to fully clamp down on the business.
The evolution of the business involves
the Turkish mafia, a loose constellation
of families that have always had a hand
in the smuggling of oil, drugs and other
goods. As the business of getting desper-
ate refugees across to Europe grew over
the past two years, they muscled their
way in, staying aloof from the daily com-
plications while demanding a large cut
Immigration control
Border agency hamstrung by meek mandate
HENRY FOY — WARSAW
DUNCAN ROBINSON — BRUSSELS
Just a few years ago, the body entrusted
with guarding Europe’s border thought
it had a bright future.
“What does the next five years hold for
Frontex?” the agency asked in a glossy
pamphlet celebrating its fifth anniver-
sary. The authors predicted two things:
“The demands placed on borders will
become greater, not less, and Frontex
will be in the vanguard of the European
Union’s strategy to meet the challenges
ahead.”
They got the first part right but the
second wrong. Brussels will this week
propose to scrap the toothless and much
maligned organisation, whose limita-
tions have been exposed by the ongoing
migrant crisis. In its stead will come a
bona fide European Border and Coast
Guard, with the power to march into a
country — even against the wishes of its
government — if it deems border pro-
tection there to be inadequate.
Supporters of the plan include Paris,
Berlin — and the head of Frontex, who
argues that such a move should have
been made sooner. “We have lost a dec-
ade,” said Fabrice Leggeri, executive
director of the agency.
Under the EU plan, Frontex would be
wound into the new European border
guard, with a broader remit in a bid
to avoid a repeat of Europe’s chaotic
response to the refugee crisis, which saw
Europe. Migrant crisis
of the millions of dollars refugees pay
each week for a place on a boat. These
payments got the smugglers informa-
tion on police raids, and cheap access to
boats, which have become increasingly
scarce after an informal ban on Chinese
imports.
Efforts by the Turkish government
have had the unintended consequence
of squeezing out smaller, less-organised
smuggling groups. Taking their place
are well-established smugglers with
more money, more ambition and better
information — often from their mafia
links — on Turkish police plans to dis-
mantle their networks.
Sitting in a crowded café in Istanbul,
one of the smugglers described his pre-
vious life as a surgeon in Syria and his
own failed Aegean Sea crossing where
he trod water for 12 hours before being
rescued by the Turkish Coast Guard.
The Doctor, as he is known in smuggling
circles, is wanted by Europol, according
to two western diplomats, and runs one
of the largest smuggling groups out of
Turkey. That evening, he was planning
to move at least 15 boatloads of refugees,
but only succeeded in sending four. He
shows a picture of a 232-metre-long ship
he has made a down payment on with
$1.5m in cash. He plans to use it to trans-
port migrants, nearly 400 at a time,
from Mersin, on the Mediterranean
coast, in a four or five day journey to just
off Italy, where fishermen will take the
refugees the final few kilometres.
For refugees who can afford it, he
wants to use fake documents that would
allow them to fly to Europe via Moscow.
His phone rings constantly, with tipoffs
from his organised crime contacts on
police checkpoints and planned raids.
“It’s getting difficult,” he said. “Not
impossible. Difficult. We will manage.”
Not far away, a muscular Syrian man,
known as the Bodybuilder, opens a big,
steel safe to reveal its empty shelves.
Until recently, he managed to send at
least a single boatload of people across
to Greece each night. Then, six months
ago, a man with a small handgun visited
him, and asked that he pay the mafia
$40,000 a month to keep operating. He
paid. A month ago the price went up —
an extra $1,000 a person. “I am fin-
ished,” he said. He estimated that at
least 20 other small-time operators had
been squeezed out of the business too.
Aegean
Sea TURKEY
G R EEC E Çeşme
IZMIR
Athens
50km Sea of Crete
1.2m people enter Europe during 2015.
In attempting to deal with the migra-
tion inflow, the Warsaw-based agency
has been hamstrung by a mandate that
allows it only to “co-ordinate” the pro-
tection of borders rather than enforce
them and bans it from buying its own
equipment or hiring staff. It has instead
relied on pledges from member states,
which often failed to materialise. Fron-
tex also needs permission to operate in a
member state — something national
‘The normal functioning
of the borders is not
possible any more’
Fabrice Leggeri, head of Frontex
capitals are often unwilling to give.
In September, Mr Leggeri sent a letter
to all EU capitals, asking whether they
would be willing to contribute person-
nel and if they envisaged needing Fron-
tex’s help. “Everyone replied saying,
‘Yes we will contribute and no we don’t
think we need support’,” said Mr Leg-
geri. “This was while more than
200,000 people were crossing the west-
ern Balkan countries and arriving in the
EU each month.”
The weakness of Frontex was deliber-
ate. The agency began life in 2005 as
a constitutional fudge after national
capitals balked at the idea of guards con-
trolled from Brussels patrolling the
★ † FINANCIAL TIMES 3
INTERNATIONAL
Middle East
Saudi Arabia
40,000 elects woman
for first time
Estimated number of migrants
arriving in Greece in the first 10
days of December
in council poll
SIMEON KERR — RIYADH
Saudi Arabia has elected its first female
politician in municipal polls in a his-
toric event in which women were
allowed to vote and stand for office.
The state news agency reported that
Salma bint Hizab al-Oteibi had won a
seat on the municipal council in the holy
city of Mecca in Saturday’s elections.
The polls mark a small step towards
redressing gender imbalances in the
Gulf monarchy, where the ruling house
of Saud is seeking to balance calls for
change from its large population of
young people with the demands of con-
servative clerics opposed to reforms.
Only 1.3m men and 130,000 women
registered to vote in the polls for seats on
councils that have limited powers over
local planning and spending.
Officials said 4m to 5m of the coun-
try’s population of 20m were eligible to
vote. An election spokesman described
this as a “reasonable proportion”, noting
that local elections worldwide rarely
generated a large turnout.
Playing down complaints that some
female activists had been barred, the
spokesman said that of 6,914 prospec-
tive candidates, only 235 were rejected,
nine of whom were women.
Activists say the elections are window
dressing to disguise the government’s
failure to tackle the real issues of female
empowerment, such as removing the
strictures of male guardianship.
The 979 female candidates had to
address men from behind closed doors,
and a video circulating on social media
showed men defacing a female candi-
date’s election billboard.
Ruba Alrabhan, a lecturer, voted for a
woman, saying a female victory would
be “good for our society”. Other voters
said it was encouraging that King Sal-
man, who succeeded the late King
Abdullah bin Abdulaziz al-Saud in Janu-
ary, had kept to his predecessor’s com-
A Turkish coast guard pulls a dinghy containing Syrians trying to reach the Greek island of Chios — Bulent Kilic/AFP/Getty Images mitment to cautious reform.
A boat importer in Istanbul ran into
similar difficulties. His import licence
allowed him to bring in Chinese-made
boats and sell them for as much as
$10,000 each. For three months his
business thrived, until two well-armed
Turkish men in a black luxury car vis-
ited his home in late October and placed
a handgun on his dining table and told
him to stop his business.
He did, later learning from his smug-
gler friends that the Turkish mafia was
becoming the largest source for boats.
He and others say those groups that pay
money to the mafia are able to buy boats
for about $400, while those who don’t
are paying as much as $6,000 for
smaller vessels. Imported boats have
become difficult to obtain, they said.
In Cesme, where Naseer, the Afghan
refugee, was stranded, the consolida-
tion of the business from small-time
operators to well-organised, well-
funded mafia-linked groups was appar-
ent. After 10 days on the beach, a new
smuggling group had offered to get the
refugees across. The new price — $1,000.
common borders of the Schengen area.
But over the following decade a pat-
tern emerged — European politicians
responded to any crisis at the EU’s bor-
ders by offering Frontex more money
but few new powers. This amounted to
“expediency and buck passing by the
member states,” said Claude Moraes,
the British MEP who heads the Euro-
pean Parliament’s Committee on Civil
Liberties, Justice and Home Affairs,
which oversees Frontex. “I don’t think it
is ready at all institutionally for the
major roles being foisted on it.”
The shortcomings of this have been
painfully revealed by the migration cri-
sis. “People asked, ‘Why isn’t Frontex
doing more?’ But anyone who knows the
mandate knows that Frontex cannot do
any of these things,” said Liz Collett, a
director at the Migration Policy Insti-
tute think-tank. “It is scapegoating.”
Jean-Claude Juncker, European Com-
mission president, revealed his inten-
tion to introduce a European border and
coastguard in September. But the final
proposal goes further than expected,
setting the scene for a fight over sover-
eignty between member states, the
commission and the parliament.
But extreme times demand extreme
measures, argues Mr Leggeri. “The nor-
mal functioning of the borders is not
possible any more,” he said. “Who could
manage 15,000 people arriving every
day on a small island with only 30,000
inhabitants? This is just impossible.”
4 ★
Monetary policy
ECB ready to act as Fed prepares to consider rate rise
Chief economist says bank
instruments are flexible
enough to face outcome
CLAIRE JONES — LONDON
The European Central Bank’s chief
economist has signalled eurozone poli-
cymakers stand ready to act, should
rate increases in the US trigger a rise in
global borrowing costs.
The Federal Reserve is on the cusp of
raising interest rates for the first time in
nine years, with officials on its Federal
Open Market Committee widely
expected to back an increase later this
week.
“We are going to see what happens
and we are ready to face any situation
there,” Peter Praet, the ECB’s chief econ-
omist, said when asked about the
Focus sharpens on renminbi
Expected Fed rate increase
could cause China’s currency
to depreciate even further
FT REPORTERS
Nervousness has taken the place of bra-
vado as emerging market officials pre-
pare for the US Federal Reserve to
tighten its monetary policy this week,
with China and South Africa braced for
currency turbulence.
Senior figures at central banks and
finance ministries acknowledge that the
first increase in official US rates since
2006 is likely to lead their country’s cur-
rencies to weaken against the dollar and
may, among other impacts, contribute
to outward flows of capital.
Much attention is focused on the ren-
minbi, which has already fallen by 1.8
per cent against the dollar over the past
six weeks, setting the tone for other
emerging market currencies in Asia and
beyond. A Fed rise would increase pres-
sure on the renminbi to depreciate fur-
ther, said Wang Yungui, a senior official
at the State Administration of Foreign
Exchange, a division of the Chinese cen-
tral bank.
“[It will bring] depreciation pressure
on emerging market currencies, includ-
ing the renminbi,” Mr Wang added. “In
this situation, some cross-border funds
will probably engage in re-positioning.
This is a reasonable, market-based
choice.”
The renminbi’s value has considera-
ble impact on the currencies of the
Asian countries that comprise China’s
industrial supply chain and commodity
exporters in Latin America and Africa.
Ahead of the Fed’s decision, Beijing
paved the way for a further weakening
of the currency by unveiling plans to
measure its value against a basket of
currencies rather than just the dollar.
“An increase in US dollar interest
rates will have a definite influence on
China’s cross-border capital flows, but it
won’t be overly remarkable,” Mr Wang
added.
In South Africa, a US Fed rise is seen as
compounding existing strains. Lesetja
Kganyago, governor of the South Afri-
can Reserve Bank, raised rates last
month because of inflation pressures
largely imported through a weak rand.
But a US rate increase may further
depress the currency — it has fallen
nearly 8 per cent in the past month and
was taken to record lows after Nhlanhla
Nene, the respected finance minister,
was sacked this week.
“The extent to which Fed tightening
has been priced into the exchange rate
remains uncertain,” Mr Kganyago said.
“Nevertheless, a high degree of vola-
tility and overshooting of the exchange
Republican presidential hopefuls
Cruz accelerates past Trump in Iowa as foreign policy gaffes hit Carson campaign
DEMETRI SEVASTOPULO — WASHINGTON
Ted Cruz, the Texas Republican sena-
tor running for president, has surged
past Donald Trump in Iowa, as he gains
from the fall of Ben Carson, the retired
neurosurgeon who has slumped in the
polls after the terror attacks in Paris
and California.
The latest Bloomberg/Des Moines Reg-
ister poll in Iowa, the first state to vote in
the primaries, found that 31 per cent of
Republicans preferred Mr Cruz, com-
pared with 21 per cent for Mr Trump.
An average of recent Iowa polls com-
piled by Real Clear Politics shows Mr
Cruz leading the property mogul who
has dominated the field for months by
1 point at 26 per cent.
impact of a Fed increase. “We did it
before, and we are ready to do it tomor-
row if needed. Our instruments are suf-
ficiently flexible to face any of these sit-
uations.”
Higher US interest rates can drive up
the cost of borrowing elsewhere, as
occurred in 2013 when the Fed’s deci-
sion to taper, or slow, the pace of bond
purchases sparked turmoil in world
financial markets, pushing up global
yields, including for debt printed in the
eurozone.
Mr Praet said the ECB had countered
that spell of volatility and pledged poli-
cymakers in the single currency area
would act again should a fresh bout of
instability erupt.
“At that time, long-term rates started
to react very much. There was an
impact [not only] on financial condi-
tions worldwide, but also in the euro-
Policymakers. Predictions
Notable move: the renminbi has fallen by 1.8 per cent against the dollar over the past six weeks — Nelson Ching/Bloomberg
rate may be expected in the lead-up to,
and in the immediate aftermath of the
start of the US interest rate cycle,” he
added.
Tony Volpon, head of international
affairs at Brazil’s central bank, said a Fed
rate rise this week would merely be
‘It’s already gotten pretty
much worse than anyone
expected and I don’t see
the bankruptcies’
“another chapter in an ongoing story”
that began when emerging markets
were shocked by US plans to rein in
monetary stimulus in 2013.
“I don’t expect a big impact, I think it
has already happened,” Mr Volpon said.
“Emerging markets have basically been
getting beaten up already for two years.”
Mr Trump yesterday turned his sights
on Mr Cruz, reflecting the latest twist in
the race that has seen Mr Cruz and
Marco Rubio, the Cuban-American sen-
ator, emerge as the main challengers to
the tycoon.
Mr Carson’s ratings have fallen follow-
ing foreign policy gaffes that came as
security and terrorism are becoming
increasingly important issues for Amer-
ican voters.
“I would say I have far better judg-
ment than Ted,” Mr Trump told CNN.
“I’m more capable, because I have a
much better temperament, because I
actually get along with people much bet-
ter than he does.
He added: “I like him. He’s been so
nice to me. I mean, I could say anything,
FINANCIAL TIMES
INTERNATIONAL
area. And we reacted with our monetary
policy,” he said in London.
The ECB cut interest rates by 50 basis
points in 2013 to a then-record low of
0.25 per cent. The central bank also
strengthened its forward guidance,
assuring markets and the public that
rates in the single currency area would
stay low for many years.
While the US central bank is set to
tighten policy, the ECB remains in eas-
ing mode. Earlier this month, the cen-
tral bank extended its quantitative eas-
ing programme for six months to March
2017, a decision that takes the size of its
bond buying to €1.46tn. It also reduced
the deposit rate by 10 basis points to a
record low of minus 0.3 per cent, a
smaller cut than many investors had
expected.
Accusations that the ECB had misled
investors were quick to surface after
He said his bigger fear was that the
tightening might be felt more in some
segments of the developed world, such
as high-yield bonds and parts of the cor-
porate market, which could ricochet
back on emerging markets.
He acknowledged the adjustment to
tighter global monetary conditions was
proceeding slowly in Brazil when com-
pared with countries such as Chile,
which has reduced its current account
deficit. But he argued the country’s
financial system remained relatively
sound given the severity of the eco-
nomic downturn.
“This is a real stress test, right. Can it
get worse? Yes, but it’s already gotten
pretty much worse than anyone
expected and I don’t see the bankrupt-
cies. I don’t see the stress in the financial
system.”
Indonesia, where the rupiah has slid
over the past month, was also putting a
and he said, ‘I agree, I agree’. But I think
the time will come to an end pretty soon,
it sounds like.”
Mr Trump was speaking after com-
ments that Mr Cruz made about the
tycoon privately to a group of donors
were leaked to the media. According to
the New York Times, Mr Cruz ques-
tioned whether Mr Trump and Mr Car-
son — the two candidates whose voters
are most likely to support him — had the
temperament to be president.
“Who am I comfortable having their
finger on the button? Now that’s a ques-
tion of strength, but it’s also a question
of judgment. And I think that is a ques-
tion that is a challenging question for
both of them,” he reportedly said.
Until recently, Mr Cruz had refrained
‘We did it before, and we
are ready to do it
tomorrow if needed’
Peter Praet
brave face on the Fed’s expected action.
“It is like the Nike tag line — ‘just do
it’,” Ekoputro Adijayanto, a senior
finance ministry official, said.
“Is it going to be a bit of a hiccup when
finally in the middle of December, next
week, they are maybe raising the rate? I
think so. But I think the risk is already
priced in to the exchange rate, so I think
it’s not as scary as it used to be.”
No matter the outlook for their own
economies, emerging market officials
agreed that regular and reliable com-
munication from the US Fed was crucial
as they enter a new era of tightening US
monetary conditions. Snap decisions
that unnerve financial markets would
risk exacerbating the impact on emerg-
ing markets, officials said.
Reporting by James Kynge in London,
Avantika Chilkoti in Jakarta, Gabriel Wil-
dau in Shanghai, Joe Leahy in São Paulo
and Andrew England in Johannesburg
Senator Ted Cruz: reported remarks
about Donald Trump were leaked
stock and bond prices slid. Mr Praet,
who led the charge for looser monetary
policy alongside the ECB president,
Mario Draghi, said that the ECB’s deci-
sion “matched” better economic news
from the eurozone.
He also said media reports that ECB
officials mooted the idea of tiered
deposit rates had fuelled speculation
the central bank would cut much
deeper into negative territory: “The
expectations gaps on the market came
very late and there were a lot of leaks
suggesting there may be additional and
more aggressive decisions taken.”
Mr Praet said just because the council
was working on a range of ideas “doesn’t
mean they have to be implemented at
the next meeting”.
Investors were also too sensitive
to decisions by central banks, Mr Praet
maintained.
Capital flows
Nervous emerging
markets fear additional
pressure on currencies
JAMES KYNGE — LONDON
If as widely expected the US Federal
Reserve tightens monetary policy this
week, emerging markets are likely to
feel the pain.
Analysts say pressure on emergency
market currencies is set to intensify,
more capital may flow out to safer
havens and debt service costs may rise
for thousands of companies that have
borrowed in US dollars.
What makes the outlook particularly
bleak is that even if emerging market
currencies fall against the dollar, export
earnings may fail to recover from their
current falls. The self-righting mecha-
nism that has rescued emerging mar-
kets from many a financial squall —
cheaper currencies often boost exports
— appears to have broken down.
Much of the concern centres on
China. Chinese officials and independ-
ent economists say a rise in US rates
would probably bolster the dollar
against the renminbi, leading to capital
outflows from China and sucking
emerging market currencies into new
phase of turbulence.
“US monetary policy and China risk
are intimately connected, almost like a
package of risks,” said David Lubin,
head of emerging markets economics at
Citi, an investment bank. “If US mone-
tary policy tightens, that will shrink the
China-US interest differential and
strengthen the dollar. Both of these out-
comes will set the stage for a weaker ren-
minbi, and that will constitute a nega-
tive shock for EM,” Mr Lubin said.
China’s heft as the world’s largest
trading nation endows the renminbi
with considerable influence. The red-
back’s 4 per cent decline against the US
dollar since its August devaluation has
fed a down trend in emerging market
currencies, with commodity exporters
and Asian countries that supply Chinese
manufacturers among the worst hit.
But in spite of the sharp depreciation
in almost all emerging market curren-
cies against the dollar over the past 18
months, emerging market exports have
failed to recover, falling 12.5 per cent
year on year in October to mark the big-
gest collapse since the 2008-09 crisis,
statistics compiled by Capital Econom-
ics show.
The export demise is remarkable
because it is so widespread, affecting
every large emerging market economy
in Latin America, Asia, Africa and east-
ern Europe. Although in volume terms
the slide in exports is more shallow than
when measured in value terms, the fall
from criticising his Republican rivals.
But last month he attacked Mr Rubio as
the two Cuban-American senators
started to emerge as the most likely
mainstream candidates to challenge Mr
Trump.
Before his private comments about
Mr Trump were leaked, Mr Cruz had
been very careful not to cross Mr
Trump, and even attended rallies with
the tycoon that prompted headlines
about a “bromance” between the men.
In national polls Mr Trump still leads
the field with 30 per cent. But Mr Cruz
has climbed to second place with 17 per
cent, ahead of Mr Rubio who has 14 per
cent.
Mr Carson has slipped to 13 per cent,
while Jeb Bush, the former Florida gov-
Monday 14 December 2015
“You see sometimes that relatively
small disappointments of the markets
of maybe mutual misunderstanding
[leads to] strong reactions,” Mr Praet
said. “It’s not the first time we see that.
And indeed that’s something that we
have to very deeply analyse.”
The ECB could act again, although
talking about new measures was “pre-
mature now”, he maintained.
“We always say, also in our communi-
cations — perhaps that has not been
taken fully into account — that we con-
tinue to monitor closely the situation.”
“If there is a need for a [new] recali-
bration of the programme, there will
be,” Mr Praet said.
“We know that the environment
remains challenging . . . We want to be
ready technically for any circumstance
that could occur.”
Wolfgang Münchau page 9
in incomes earned by exporters is hav-
ing significant knock-on effects
throughout economies.
“Real GDP growth, of course, is a use-
ful enough measure, but for companies
trying to boost sales, investors looking
for higher profits, workers hoping for a
salary raise, and debtors struggling to
repay loans, nominal GDP growth often
matters much more,” said Frederic Neu-
mann, economist at HSBC in Hong
Kong.
Nominal earnings are hit most when
currencies depreciate, reducing the dol-
lar value of exports, making it harder
for corporations to service dollar debt
and prompting many investors to redi-
rect capital to safer havens such as dol-
lar-denominated assets.
The trillions of dollars of cash that
flowed into emerging markets partly as
a result of easy US monetary policy, are
now beginning to depart. “Just as EMs
‘EMs have become
more vulnerable to
changes in global rates’
Diana Choyleva, Lombard Street
imported easy US monetary policy,
their liquidity will tighten as the Fed
raises interest rates,” said Diana Choyl-
eva, head of research at Lombard Street
Research. “EMs have become more vul-
nerable to changes in global rates,” Ms
Choyleva added.
Private sector debt (households and
companies) now equals about 105 per
cent of GDP in emerging markets, a
higher proportion than was seen in
developed markets on the eve of the
financial crisis.
So, if US dollar strength results in a
further renminbi depreciation, which in
turn triggers a further round of emer-
gency currency weakness, some emerg-
ing market companies could find them-
selves struggling to repay their debts.
“Weaker Chinese growth, further falls
in commodity prices, corporate
defaults, and the impending Fed tight-
ening cycle are possible threats, and
there may be other factors that may
drag EM into a vortex,” warns Société
Générale.
Of course, the outcome could be
much more benign. If Fed tightening is
gradual, the renminbi depreciates only
gently and emerging market currencies
remain fairly robust against the US dol-
lar, emerging market economies could
gradually become more export ori-
ented.
ernor who was initially the establish-
ment favourite, has 4 per cent.
Mr Cruz was the first Republican to
enter the presidential race back in April.
While the media have spent the past
six months focusing almost exclusively
on Mr Trump, the Texas senator has
quietly concentrated on building up his
ground operation, which experts say is
one of the most impressive.
The freshman senator has also
worked hard to raise money to ensure
that his campaign could last through the
primaries, particularly given the record
size of the Republican field. When the
party contenders last reported their
fundraising totals in October, Mr Cruz
had raised almost as much as Mr Bush.
Edward Luce page 9
Monday 14 December 2015 ★ FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Monday 14 December 2015

INTERNATIONAL

Economic inheritance South Africa

Macri focuses on fix for Argentine woes Johannesburg

Among issues for new
president are ‘dangerously’
low central bank reserves
BENEDICT MANDER — BUENOS AIRES
Mauricio Macri celebrated his inaugu-
ration last week with a victory jig at the
Casa Rosada presidential palace in Bue-
nos Aires. But the time for dancing is
over for Argentina’s new president. He
must now fulfil his promise to fix a fail-
ing economy.
“Right now there is no sense of a cli-
mate of crisis. But the challenges they
are inheriting are major, and there could
even be some unpleasant surprises,”
warned Miguel Kiguel, a local economist.
Mr Macri’s economic inheritance is
“much more complex” than most
Argentines realise, he says. Among the
most urgent and delicate problems
faced by the new government are the
reserves at the central bank, which have
fallen to “dangerously” low levels in
order to prop up the overvalued peso,
says Mr Kiguel.
Mr Macri’s campaign promise to
remove strict exchange controls is
ambitious because reserves will be
needed to avoid an “overshooting” of
the exchange rate, an inflationary spiral
and an excessive rise in interest rates.
Even so, Mr Kiguel argues that a devalu-
ation is imminent, since the current sit-
uation is unsustainable.
A devaluation would help to trigger a
huge influx of foreign exchange when
Argentina’s farmers begin to sell
between $3bn and $11bn of grain they
are believed to be hoarding in the hope
of a better exchange rate at which to sell.
This would also be helped along by a
reduction of punitive taxes on grain
exports, one of Mr Macri’s key campaign
promises, which is expected to be for-
malised soon.
The central bank’s new governor, Fed-
erico Sturzenegger — who took over
Social media. Counter-extremism
after his predecessor Alejandro Vanoli
resigned on Wednesday under pressure
from Mr Macri — is also hoping to bol-
ster reserves by issuing a bond for as
much as $10bn to a group of interna-
tional banks including HSBC, JPMorgan,
‘Restructuring an economy
takes time, so people will
have to be patient’
Susan Segal, president AS/CoA
Goldman Sachs, Deutsche Bank and Cit-
ibank, according to the national news-
paper La Nación.
Luis Caputo, the finance secretary
and a former Deutsche Bank executive,
has also taken the first steps to restart
negotiations to end a bitter legal dispute
with a group of US hedge funds; the con-
flict has isolated the country from global
capital markets since its $100bn sover-
eign debt default in 2001.
Another avenue being explored to
provide support to central bank
reserves is the renegotiation of a cur-
rency swap agreement with China.
Mr Macri’s surprise victory in Argen-
tina has created optimism within the
country and internationally that the
nation’s long estrangement from global
capital markets can be ended, according
to Susan Segal, president of the Ameri-
cas Society/Council of the Americas.
“This is a historic moment for Argen-
tina,” she said.
But Mr Macri’s honeymoon will be
short. The former mayor of Buenos
Aires and his economic team must
assess the true extent of the economic
damage they are inheriting: long-
discredited official statistics have hid-
den the real size of the fiscal deficit, for-
eign exchange reserves are badly
depleted and the inflation rate is already
one of the highest in the world.
In addition to the immediate eco-
nomic challenges facing the new admin-
istration are political and social chal-
lenges that could hinder reform
attempts. Lacking a majority in Con-
gress to pass laws required to imple-
ment reforms, Mr Macri will need cross-
party political support.
Mr Macri spent his first full day as
president on Friday meeting the other
candidates he defeated in the election,
including Daniel Scioli and Sergio
Massa, who are likely to play an impor-
tant role in the opposition.
Mr Scioli, who traded insults with Mr
Macri during the campaign, described
their discussion as “mature”. “It is time
to act together,” he said.
Ms Segal hopes Argentines will give
Mr Macri’s government the chance to
bring strong growth and low inflation
back to Argentina. If he succeeds in
building confidence, Argentina could
begin to attract “huge” investment.
“But restructuring an economy takes
time, so people will have to be patient,”
she said.
stock exchange
chief warns
after Nene
dismissal
ANDREW ENGLAND — JOHANNESBURG
The Johannesburg Stock Exchange yes-
terday took the rare decision to com-
ment on a political matter, warning of
the economic damage triggered by
President Jacob Zuma’s decision to
remove his respected finance minister.
In a statement that highlights mounting
worries within the corporate sector,
Nicky Newton-King, the JSE’s chief
executive, said there should not just be
concerns about the immediacy of mar-
ket reaction but that people “should be
mindful of the longer-term impact on
the financial stability of our economy”.
“We should remember that behind
the daily statistics are the life savings of
ordinary South Africans which are
likely to be negatively impacted,” she
said. “As individuals and as corporates
we need to be aware of how we are
impacted by the seriousness of this

Abdullah-X takes the online fight to Isis
Animated YouTube character
is part of a wider strategy
to combat radicalisation
HANNAH KUCHLER — SAN FRANCISCO
GEOFF DYER — WASHINGTON
Abdullah-X is a British Muslim with a
working-class accent, dressed in a black
and red T-shirt with a large chain
around his neck. He appears in
YouTube videos talking about Syria and
aims at a young audience.
The cartoon character is the latest
weapon in the war against Isis on social
media, part of a push to create more
counter-extremism content that is
being supported by technology compa-
nies such as Facebook and Google.
As social media companies come
under pressure after the attacks in Paris
and California, some are looking beyond
taking down videos and posts by terror-
ists hunting for new recruits, towards
using their platforms to spread more
palatable messages.
Abdullah-X asks his audience to think
about the needs of the women and chil-
dren in Syria, consider their own
responsibilities to their families at home
and to question whether they really
know the actual motivations of groups
who claim to be fighting for Islam.
“There is a call of duty for Syria, it is to
be well informed and not misinformed,”
he ends.
Facebook and Google, which owns
YouTube, do not create the content
themselves but have helped non-profit
organisations by giving them tools to
target the right audience online — young
western Muslims who either already
show an interest in extremist content or
fit the profile of those who do.
Eric Schmidt, Google’s chairman,
called for tools to help de-escalate ten-
sions on social media “sort of like spell-
checkers, but for hate and harassment”
in a column in the New York Times earlier
this week. Facebook has participated in
’counter speech’ social media training
sessions across the world, especially in
the past few months. The US govern-
ment has sponsored ‘technology camps’
bringing together social media compa-
nies and civil society.
This work is on top of the companies’
efforts to take down terrorist content.
Facebook, YouTube and Twitter already
have large teams devoted to responding
to reports of terrorist content, which is
banned on all the platforms. Facebook
alone has hundreds of people in four
offices around the world.
Digital creation But senior lawmakers in Washington
Abdullah-X have gone further and introduced a bill
urges his that would require social media compa-
viewers to nies to report any terrorist activity they
question the see on their networks to law enforce-
motivations of ment authorities.
radical groups Richard Burr, the Republican chair of
the Senate intelligence committee, and
his Democratic counterpart Dianne
Feinstein said social media groups
should treat messages about terrorism
the same as they do child pornography.
Ms Feinstein, a California Democrat,
said on Wednesday that it was impor-
tant to impose such reporting standards
on social media companies.
“I went and visited with the chief
counsels of the big tech companies in
my state about trying to get a bomb-
making portfolio, 15 pages, off the
internet,” she said. “I pointed out it had
been tested and there was no interest in
taking it down.”
Critics said the criteria for what con-
stitutes terrorist activity in the pro-
posed bill were too vague. Social media
platforms argue it is much easier to
identify child pornography, which
many match with a database of known
images supplied to them by the National
Center for Missing and Exploited Chil-
dren, than radicalising content, which is
hard to define.
Ron Wyden, the Oregon Democrat
who is one of the strongest privacy
advocates in the Senate, said that the
proposed bill would undermine collabo-
ration between the private sector and
the FBI.
“It would create a perverse incentive
for companies to avoid looking for ter-
rorist content because if they saw some-
thing and failed to report it, they could
be breaking the law,” he said.
Sasha Havlicek, chief executive of the
Institute of Strategic Dialogue, a UK-
based think-tank that has participated
in counter-extremism projects, says
taking content down is like playing
“whack a mole” and often counter-
productive, creating “online martyrs”
whose new account has more followers.
“We have to start to compete with this
machinery rather than look at ways to
take stuff down after the fact,” she said.
In one project, former extremists who
are part of the Against Violent Extrem-
ism network that was started at a Google
Ideas conference, have made one-on-
‘We have one contact on Facebook with those who
to start to are being radicalised. Some 60 per cent
of people contacted engaged in counter-
compete extremism conversations, Ms Havlicek
with this said.
The US government is also rethinking
machinery its own strategy to try to counter Isis
rather than propaganda on the internet.
Earlier in the year, the US helped set
look at ways up what the White House called a “dig-
to take stuff ital communications hub” in the United
Arab Emirates which produces content
down after in Arabic for the internet that chal-
the fact’ lenges Isis narratives and recruitment.
A US official said similar initiatives were
Sasha Havlicek being set up in Malaysia and Nigeria.
moment and take accountability for
how we respond.”
The JSE All-Share, which is by far
Africa’s largest exchange, plummeted
by 3 per cent and the bank index lost
nearly 19 per cent in the two days after
the presidency on Wednesday said it
was replacing Nhlanhla Nene with
Douglas Van Rooyen, a little-known
parliamentarian with no previous expe-
rience in national government.
The rand fell by about 9.5 per cent in
the days after the announcement, while
the yield on South Africa’s benchmark
2026 bond has jumped from 8.75 per
cent to 10.38 per cent since Wednesday.
The JSE said the average daily value
traded in the equity market over the two
days, at R47.8bn, was more than double
the year to date average for 2015.
The market reaction was triggered by
investors’ concerns that the Treasury,
which has won significant domestic and
international credibility in the 21 years
since the first democratic election, was
being afflicted by political meddling.
Analysts warned Mr Nene’s sudden dis-
missal raised serious questions about
financial management in South Africa —
which is one of the most traded and liq-
uid emerging markets — at a time when
economic growth is anaemic and while
the government battles to narrow wide
fiscal and current account deficits.
Non-resident portfolio inflows pro-
vide a key source of financing for the
current account, and South Africa typi-
cally auctions about R4bn of bonds a
week, with about a third of its bonds
held by foreign investors.
After nearly two days without an
explanation for Mr Nene’s removal or
government attempts to reassure inves-
tors, Mr Zuma on Friday insisted there
would be no change of fiscal policy.
“Government will not abandon the
fiscal path that we have chosen in the
last few years. Maintaining a prudent
fiscal position remains one of govern-
ment’s top priorities,” Mr Zuma said.
“The new minister will strengthen the
path and continue to support all efforts
aimed at improving the lives of ordinary
South Africans.”
He sought to explain his decision to
replace Mr Nene by saying he had been
nominated for a position at the new
Brics development bank. South Africa is
a member of the Brics grouping that
includes China, India, Brazil and Russia,
but the reasoning has largely been
treated with scepticism.
South Africa’s economy is expected to
struggle to grow much beyond 1 per cent
this year and next, while any potential
US interest rate rise is likely to put more
pressure on the weak rand.
This comes during a period when
liquidity in South Africa’s markets is at
its tightest.
Anglo American digs in page 18

Jewish condemnation

Statue of pro-Nazi Hungarian education minister ignites dispute over anti-Semitism

ANDREW BYRNE — BUDAPEST
Balint Homan’s admirers would like
him to be remembered as a learned
politician who studied the arrival of the
Magyar tribes in the Carpathian basin
in the Middle Ages and served in Hun-
garian governments in the 1930s and
1940s.
They are less keen to note his central
role in promoting notorious Jewish laws,
urging a close alliance with Nazi Ger-
many and ultimately the deportation
and execution of more than 500,000
Hungarian Jews.
But those biographical facts are at the
heart of a controversy that has erupted
since Hungary’s government decided to
donate Ft15m ($52,000) to fund a
bronze statue of the former education
minister, due to be unveiled in Szekesfe-
hervar, the city he represented in parlia-
ment, on December 29.
Amid condemnation from global Jew-
ish groups, eight US members of Con-
gress have written to Viktor Orban,
prime minister, warning that the statue
is inconsistent with Mr Orban’s policy of
zero tolerance for anti-Semitism.
City authorities say the monument is
intended to celebrate Homan’s contri-
bution to the city. Andras Cser-Palko-
vics, Szekesfehervar’s mayor, has said
he would ask the Homan Foundation,
the group behind the statue, to recon-
sider its installation but stopped short of
scrapping the plans.
Mr Cser-Palkovics also lashed out at
criticism as “driven by political inter-
ests, in the guise of tolerance, attempt-
ing to export a culture of hatred and
opposition to Szekesfehervar”.
The dispute highlights Hungary’s
struggle to come to terms with its role in
the Holocaust, a continuing source of
tension in a country where the radical
rightwing, and sometimes explicitly
anti-Semitic, Jobbik party has risen to
become Mr Orban’s biggest rival.
Several government ministers have
distanced themselves publicly from the
government’s decision to fund the
statue. A spokesman yesterday said the
matter was for local authorities to
decide but would not be drawn on
whether Budapest would withdraw
funding from the project.
Privately, ministers fear the contro-
versy will undo the efforts by the gov-
ernment, currently chairing the Inter-
national Holocaust Remembrance Alli-
ance, to allay the concerns of Jewish
advocacy groups.
In the 1930s, Homan supported
restrictions on the rights of Jews to own
land and enter the professions and uni-
Balint Homan, left, with Nazi
minister Bernhard Rust in Berlin
versities. In 1941, he sponsored a bill
revoking the equal status of Jewish
organisations. His anti-Semitic creden-
tials were firmly established by 1944,
when he joined 29 other MPs in signing a
document demanding the immediate
expulsion of Hungary’s Jews, more than
500,000 of whom were killed in Nazi
death camps.
Studies of his letters reveal he regu-
larly urged Hungary’s prime minister to
follow Nazi Germany’s lead in persecut-
ing Jews.
“This statue falls into a pattern of
erecting symbols glorifying the [war-
time pro-Nazi] regime of Admiral [Mik-
los] Horthy,” says Maria Kovacs, a his-
tory professor who has studied Homan’s
records. “These symbols commemorate
people once thought as unworthy, fig-
ures drawn from the darkest parts of
Hungary’s history.”
The controversy has stoked fears of
anti-Semitism in a country where stud-
ies by Median, a polling company, sug-
gest up to 25 per cent of the population
hold anti-Semitic views — a roughly 10
percentage point jump since 2009.
Such a level of intolerance is not unu-
sually high for central and eastern Euro-
pean countries, argues Andras Kovacs,
professor at Central European Univer-
sity. But he says anti-Semitism in Hun-
gary is distinguished by its prominence
in political discourse and the public
domain.
“Now, instead of accepting the dark
parts of Hungary’s past, we see attempts
at glorifying certain figures and white-
washing the record,” he says.
Monday 14 December 2015
The politician known for her measured approach surprised the world with her ‘refugees welcome’
message. The decision may cost the German leader politically but it is certain to define her legacy.
D
ays after returning from dif-
ficult negotiations over a
third Greek debt bailout,
Angela Merkel met a group
of school children in the
northern city of Rostock.
With the cameras rolling, a 14-year-
old Palestinian girl named Reem Sahwil
told Ms Merkel that she feared being
sent back to a refugee camp in Lebanon
if her family’s asylum application was
rejected. “I don’t know what my future
looks like as long as I don’t know if I can
stay,” she told Ms Merkel in perfect Ger-
man. “I’d like to go to college. That is
really a . . . goal I’d like to achieve.”
Ms Merkel responded with a lesson in
political realities. “We can’t just say,
‘You can all come. And all of you in
Africa can come.’ We can’t manage
that,” she said. Ms Sahwil broke down in
tears. A video of the moment went viral,
leaving an impression that the German
chancellor could be cold, even mean.
Yet only a few weeks later, the woman
who had failed to console one refugee
was embracing hundreds of thousands.
Instead of jumping to protect Ger-
many’s frontiers from a wave of Syrian
refugees, as many conservatives
wanted, she pledged to shelter anyone
from the war-torn country. Her “refu-
gees welcome” message spread like
wildfire. On social media, Syrians
shared images of Ms Merkel bearing the
words “we love you”. A burst of eupho-
ria broke out, with Germans rushing to
help the influx of refugees.
In a matter of weeks, Ms Merkel had
been transformed in the eyes of the
world and her fellow Germans. The cau-
tious, “step-by-step” chancellor who
had led Germany for a decade was gone,
replaced by a politician with bold con-
victions. It was a big gambit, and it is far
from clear whether it will pay off.
If it does, however, it will cement her
reputation as one of Germany’s great
chancellors. By keeping Europe’s doors
open for more than 1m mostly Muslim
refugees, Ms Merkel will leave a legacy
as enduring as her mentor, former chan-
cellor Helmut Kohl, who presided over
German reunification and the birth of
the euro. For this reason, the Financial
Times has named Angela Merkel its
2015 Person of the Year.
Much of the initial feeling of goodwill
has worn off, and she has been the target
of harsh criticism from within her own
CDU party for allowing a tide of refugees
into the country. Jens Spahn, deputy
finance minister, says: “We are living
through a disruption of our state.”
‘Let us have the courage
to say we are Christian.
Let us have the courage
to say we will go into a
dialogue with Muslims’
Wolfgang Schäuble, Germany’s
finance minister, compared her to a
“careless skier” who risked causing “an
avalanche”. So why did a politician
known for her caution make a decision
that could consume her? Allies say the
61-year-old chancellor was driven by
her Christian principles, belief in the
positive effects of migration — and con-
cern that the crisis could tear Europe
apart.
To her supporters, this is strong,
moral leadership at a time when most
global politics is dominated by short-
term calculation. But to her critics, she
has been rash, arrogant and self-right-
eous. The truth is different, says a close
aide: “She is neither the white witch nor
Mother Teresa.”
Hungary’s prime minister Viktor
Orban, a vocal opponent of the refugee
policy, has accused Ms Merkel of “moral
imperialism”. He meant it as an insult,
but for the chancellor it was unintended
praise. She is seeking to impose her val-
ues, and has said as much: “If we now
have to start apologising for showing a
friendly face in response to emergency
situations, then this is not my country.”
Measured steps
Biographers trace her famous prudence
to her upbringing in Communist East
Germany, where her Lutheran pastor
father encouraged his children to think
freely but keep their opinions to them-
selves. “Learning to keep quiet was a
great advantage in the DDR period,” the
chancellor once said.
She played by the rules, working hard
at school, joining the Free German
Youth (young Communists) and mas-
FT PERSON OF THE YEAR. ANGELA MERKEL
By Stefan Wagstyl
tering Russian, unlike some students
who did poorly in the language as a pro-
test against Soviet rule. Her Stasi report
noted that she saw the Soviet Union as
“a dictator” but was enthused by Rus-
sian language and culture. Stefan Kor-
nelius, a biographer, writes that much of
the mystery about Ms Merkel lies in the
35 years she spent in this “completely
alien other world”.
When the Berlin Wall came down in
1989, she did not rush to the western
half, but kept an appointment to accom-
pany a friend to the sauna. However, she
went a few hours later, and again the fol-
lowing day. “The yearning for freedom
cannot be contained by walls for long,”
she said later. Like many east Germans,
she relished the newfound freedom to
travel, having only made one trip to the
west as an adult. Unlike others, she did
not devote herself to touring the world.
She was also a woman in a hurry.
After years as a professional physicist,
she leapt into politics. Within months
she was a government spokesman and,
soon afterwards, a minister in Mr Kohl’s
cabinet. And she was ruthless: when Mr
Kohl became embroiled in a party fund-
ing scandal, she turned on her mentor
and grabbed his job as party leader.
Later, she rediscovered the virtues of
prudence. She ran for chancellor in
2005 against the unpopular incumbent,
social democrat Gerhard Schröder, on a
platform urging liberal economic
reforms — and almost lost. She vowed
never again to run ahead of her voters.
Instead, she consolidated power by
pushing her conservative CDU/CSU bloc
into the middle ground and winning
three elections. Her few reforms — nota-
bly accelerating the phase-out of
nuclear power after Japan’s Fukushima
disaster — meshed with public opinion.
Ms Merkel has been doggedly patient
in dealing with the biggest recent threat
to European security — the re-emer-
gence of Russia. She has talked for hours
to President Vladimir Putin in Russian,
even as other western leaders shunned
him over his annexation of Crimea. She
has managed to contain the Ukraine
conflict and keep the EU united on eco-
nomic sanctions against Russia.
Obsessive approach
In the eurozone crisis, she provoked
international criticism with her tough
approach to Greece and other indebted
states, though her party wanted the
chancellor to take a harder line. In
southern Europe she was condemned as
an overbearing debt-collector. But
much of northern Europe, and the Ger-
man public, backed her stance.
All the while she took care not to dis-
turb German voters’ well-upholstered
lifestyles. Largely avoiding her pre-2005
liberal rhetoric, Ms Merkel developed a
way of reassuring the public by saying as
little as possible. A new verb was born —
merkeln: do nothing, give no opinion.
Behind the scenes she was tireless and
detail-orientated. During the Ukraine
conflict, she pored over military maps;
with Greece, she dug into the rotten pen-
sions system and went through it line by
line with Greek premier Alexis Tsipras.
The chancellery hums with her ideas,
delivered in conversations or in hand-
written margin notes on official papers.
This is a top-down administration.
She wields power with the coldblood-
edness she once applied to Mr Kohl.
This year, she sidelined her loyal aide
Thomas de Maizière after his apparent
failure to respond fast enough to the
migration crisis. “She knows how to use
the political knife,” says a CDU MP.
The chancellor is well informed — her
daily media briefing runs to 100 pages —
and an unashamed intellectual, delight-
ing in clever company such as Neil Mac-
Gregor, the British Museum’s outgoing
director. For her 50th birthday party
she arranged a neuroscience lecture.
But she also enjoys lighter fare, such as
Midsomer Murders, a British TV show.
She relaxes in a holiday cottage in
northeastern Germany. She likes to
cook, especially local dishes such as beef
rouladen. Summer holidays are spent
walking in the Dolomites; in the winter
she goes cross-country skiing in St
Moritz. Her companion is her husband
Joachim Sauer, a fellow scientist who
she met in the 1980s. She split from her
first husband, Ulrich Merkel, another
scientist, whose name she kept.
Ms Merkel rarely speaks publicly
about religion, though a cross sits in her
chancellery office. She made an excep-
tion, however, when she was confronted
in September at a student gathering in
Bern, the Swiss capital. Asked whether
she was concerned that her policies
would Islamisise Europe, she urged
Christians to stop blaming Muslims and
show the strength of their beliefs. “Let
us have the courage to say that we are
Christian. Let us have the courage to say
that we will go into a dialogue” with
Muslims.
The chancellor once criticised multi-
culturalism. But today she praises
migrants, not only for their economic
★ FINANCIAL TIMES 7
contribution but also their role in
“enriching German cultural life”.
Transformation
Knowing that a fifth of Germans are
first- or second-generation immigrants,
she is pushing the nation to be more
inclusive. Thomas Schmid, political edi-
tor of Die Welt, says she seeks a “new,
of a cautious
different, more colourful, ever less
homogenous and fairly rugged repub-
lic”.
Ms Merkel was inspired by the sight of
German volunteers helping refugees.
Some say she saw a chance for Germany
chancellor
to show a gentler face than as the task-
master of the eurozone crisis, and to pull
the country further from its Nazi past.
She is also perhaps capitalising on a
growing national confidence, born of
the increasing distance from 1945, eco-
nomic expansion and cultural successes
ranging from the hosting of the 2006
football World Cup to “cool” Berlin. “We
can do it,” she has said repeatedly in the
crisis, echoing Barack Obama’s “Yes we
can.”
But as the threats to the stability of the
EU, especially the Schengen free-travel
zone, have mounted, another motive
has come to the fore: protecting Euro-
pean unity. During the Greek crisis, Ms
Merkel repeatedly said: “If the euro
fails, Europe fails”. Of the refugee crisis,
she says: “It is no exaggeration to see
‘She is remaking
Germany into a new,
different, more colourful,
less homogenous and
fairly rugged republic’
this task as a historic test of Europe.”
As a DDR child, she sees herself as a
beneficiary of the openness that came
with the cold war’s end; she would hate
to be the chancellor who watched the
EU lurch backwards. “She feels it’s her
duty to make the union work,” a Ger-
man diplomat says. “If it doesn’t work, it
is the end of Europe as we know it.”
Berlin has channelled its growing
power through the EU, often in lockstep
with Paris. However, with France weak-
ened and Britain looking inwards, the
EU may no longer fulfil Germany’s
hopes.
Sharing the burden
For Ms Merkel, closing Germany’s bor-
ders to refugees was never practical.
Border guards could not be seen using
force, but then how could they stop
migrants? A government official says:
“It was a calculation.”
Ms Merkel has also pursued prag-
matic solutions, toughening Germany’s
asylum rules and cutting cash benefits.
She is seeking a way to redistribute refu-
gees from countries bearing the brunt —
including Greece, Italy, Germany, Swe-
den and Austria — to other member
states. And she is crafting a deal with
Turkey to staunch flows.
So far, though, she has failed to stop
the tide. The latest German numbers for
the year show 965,000 refugee arrivals
by the end of November, putting the
country on track for more than 1m for
2015, five times more than last year.
Members of her CDU/CSU bloc say
she may have only weeks before she has
to change tack. Support for the bloc has
dipped, while the rightwing Alternative
für Deutschland has gained ground to
about 8 per cent. Her party is not seek-
ing to replace her, but many want
changes, such as on border controls and
refugee quotas. Says Mr Schröder: “Mer-
kel had heart but no plan.”
In private, the criticism is harsher. A
CDU MP says: “Perhaps she’s . . . tired
after 10 years. Perhaps she thinks that if
she changes course she will be funda-
mentally weakened. Perhaps she
doesn’t want to admit she was wrong.”
Mr Schmid says Ms Merkel’s place in
‘She feels it is her duty history hangs on the refugee crisis. If she
solves it “she will be a great chancellor”.
to make the union If her efforts fail “she will be recognised
for her 10 years as a crisis manager”.
work. If it doesn’t This underestimates her impact. Her
work, it is the end of response to the refugee crisis has shaken
Europe profoundly. Germany will never
Europe as we know it’ be the same again. For better or for
worse, the cautious Ms Merkel is boldly
transforming a continent. Even if she
fails, she has left an indelible mark.
Angela Merkel, renowned Person of the Year online
for her caution, surprised View an interactive on the
many with her stand on runners-up and assess the
legacies of past winners
the refugee crisis
Etienne Laurent/EPA ft.com/person
8 ★
MONDAY 14 DECEMBER 2015
The world, together, will
fight climate change
A
Aframework
k for confronting the challenge of global warming
Complicated problems do not gener-
ally yield to simple solutions. And few
are more complex than the question of
how to confront the challenge posed by
anthropogenic global warming.
The Paris climate accord, signed
amid great fanfare on Saturday by the
representatives of nearly 200 states,
does not supply the final answer. What
it does is to spread the responsibility
for finding one beyond a small coterie
of developed countries. This in itself is
a historic achievement. But its success
or failure ultimately hinges on how sol-
emnly its many signatories are willing
to accept this weighty charge.
The preparedness of the developing
world to accept a share of the burden
was always vital if any credible way for-
ward on tackling climate change was
possible. Past deals have mainly
heaped the onus on those advanced
economies that were responsible for
much of the historic growth in emis-
sions.
But with China and India alone now
responsible for a third of global carbon
discharges between them, their pres-
ence in any future framework agreed at
Paris was essential. Without it, no deal
could even have curbed future
increases at a global level, let alone
started to drive them down.
The French hosts, under the able
leadership of foreign minister Laurent
Fabius, deserve credit for finally squar-
ing this circle and forging a compro-
mise that both developed and develop-
ing worlds could accept. The price, as
expected, is the jettisoning for the most
part of any pretence at copper-bot-
tomed legal obligations of the sort that
characterised the last global deal, the
ill-fated 1997 Kyoto accord.
While the deal sets a new tougher
objective to limit global warming to
“well below 2 degrees above pre-indus-
trial levels” (and, indeed, a stretch goal
of 1.5 degrees), there are no binding
Tax efficiency alone is
no reason to do a deal
Boards must not let possible savings override industrial logic
Eric Schmidt, Google’s chairman, drew
fire in 2013 when he defended the
internet group’s tax affairs by pointing
out that the company was merely work-
ing within the structure of the interna-
tional tax regime, however irrational.
“It would not have been designed this
way by a computer scientist, I can tell
you,” he told a UK audience.
Companies can, however, design
their own structure, through mergers,
acquisitions and spin-offs. Three cur-
rent deals show how boards weigh tax
considerations in their plans — and
why, while tax efficiency can be the
servant of strategy, it should never be
its master.
Google’s rival, Yahoo, provides the
least contentious example. Under pres-
sure from investors, the internet group
last week withdrew a plan to spin off its
shareholding in Alibaba of China,
mainly because of the risk that it would
expose the company to a large capital
gains liability. Instead, the board could
now demerge or sell its core operations.
The decision may not solve Yahoo’s
strategic dilemmas. It is still a company
whose central business is virtually val-
ueless, net of its stake in Alibaba. But
shareholders should applaud it for
applying common sense to the strategic
question of how to break itself up and
for choosing the most advantageous
route, after assessing the tax question.
Pfizer’s proposed merger with Aller-
gan, which would allow the US group to
redomicile in Ireland, stands at the
other extreme. By pursuing this tax
inversion, Pfizer is allowing tax expedi-
ency to trump industrial logic and
flouting the unofficial code of corpo-
rate citizenship. As opposed to the tem-
porary tax advantage of Yahoo’s chosen
transaction, Pfizer would permanently
avoid tax in its “home” country.
The third example is Dow Chemical’s
proposed merger with DuPont. Like
Yahoo, both companies face pressure
mechanisms for achieving this. The cli-
mate action plans submitted by an
impressive 188 of those countries par-
ticipating do not cumulatively deliver
even the less demanding total. They
would lead to temperatures rising by
some 2.7 per cent. Yet signatories are
under no legal obligation to meet even
these.
What the plan does require is for sig-
natory states to set out their plans to
avert climate change every five years.
These must be accompanied by an
assessment of current progress, com-
piled according to a common reporting
standard that permits comparisons to
be drawn.
The hope is that this will create the
necessary framework for regular
reviews on progress as the world tries
to avoid dangerous warming. It may
not be possible to compel countries to
meet their targets. But by embedding
transparent information exchanges
and regular international dialogue into
the system, it may be possible to estab-
lish new norms of behaviour, whereby
countries not only strive to meet tar-
gets, but also set more demanding
ones.
Inevitably, the deal remains a work
in progress. Trust of the sort that will be
required to build solidarity will take
time to develop. The developed world
has not inserted into the treaty its com-
mitment to transfer funds to poorer
nations in order to help them adapt to a
low carbon future. The commitments
beyond 2020 are vague.
Paris is not the end of the matter. It is
not even the beginning of the end. The
problem will not be solved for years to
come. The treaty does however provide
a sensible foundation for international
co-operation. This opens the door to
greater ambition over time. Now a via-
ble path lies before them, countries
must show the courage and foresight to
take the next crucial steps.
from activists. Unlike Yahoo, the most
attractive prize is the operating busi-
ness, notably a combination of the
groups’ agriculture operations. But the
tax treatment of a direct sale would be
less favourable than that for a rounda-
bout route via a full merger of the par-
ents. DowDuPont, the unlovely name
for the combined company, will then
carve itself into three companies in
agriculture, material science and speci-
ality products: a “tax-free” separation,
in the words of the announcement.
A cynic would say bankers and law-
yers were always bound to counsel the
companies to take this second, more
ambitious route, sucking up fees at
every stage. But their bill will be justi-
fied if, after tax, the string of deals
yields real business benefits. What
remains uncertain is whether it will.
Even if the merging companies gen-
erate the forecast cost savings of $3bn a
year, the falling cost of energy in the US
has removed the obvious reason for
mature chemical companies to do
defensive deals. Complex mergers are
also always prone to the risks and
uncertainties of poor execution, possi-
ble antitrust obstacles, and loss of
focus. If DowDuPont stumbles later,
investors may come to regret having
bypassed the less tax-efficient shortcut
to an agricultural chemicals deal.
Overcomplicated tax codes distort
the market by encouraging multi-
nationals to exploit them, to the detri-
ment of local rivals. Governments have
a wider responsibility to reform and
simplify the system.
Meanwhile, any board considering a
deal has a duty to ask if it is the most
tax-efficient transaction that is legal
under existing regulations. Directors
should also apply a more basic rule of
thumb: is tax avoidance or business
benefit the overriding reason for doing
this deal? If the former, they should
think again.
FINANCIAL TIMES
Unmovable in the face of the evidence on guns
Sir, Roula Khalaf (“The dispute over
how to keep guns from the bad guys”,
Notebook, December 10) may be
interested to hear the views from the
“shop floor” here in the US.
I had a discussion with four fellow
surgeons about the recent shootings in
San Bernardino, California. I pointed
out to them the following facts: there
have been 353 mass shootings in the US
to date this year, (excluding any that
might have occurred in the last two
days!). I don’t know of any mass
shootings in the UK this year. There
were 10.5 gun-related deaths per
100,000 people in the US versus 0.26
gun-related deaths per 100,000 people
in the UK (in other words, 40 times
more). And that there are 112.6 guns
per 100 residents in the US and 6.6
Businesses are paying
higher employment
and property taxes
Sir, Stephen Herring (Letters,
December 9) is right that corporation
tax provides a misleading picture of the
value added to the UK by multinational
companies. But unlike Mr Herring, I
think governments are well aware that
corporation tax is an inefficient way of
taxing business. Successive UK
governments have steadily reduced
dependence on corporation tax by
cutting the tax rate while increasing
taxes on employment and property.
Ten years ago, the UK’s 100 largest
companies paid equal proportions of
corporation tax to other taxes such as
business rates and employer’s national
insurance contributions. In contrast,
last year for every £1 of corporation
tax, the largest companies paid £3.27
in other taxes. This shift appears to be
paying off, with the overall tax borne
by big business sustained. Yet this is a
point that often gets lost in debate on
whether businesses are paying their
“fair” share.
Kevin Nicholson
Head of Tax,
PwC,
London WC2, UK
Trump’s comments seem
to have found acceptance
Sir, As a first generation British citizen,
the son of a Pakistani Muslim
immigrant father and a Catholic
German mother, I broadly agree with
the thrust of your recent editorial on
Donald Trump (December 9).
Even so, I can’t help thinking it
misses a fundamental (-ist?) point. It is
not that the US presidential hopeful
has issued appalling and inflammatory
comments. Rather it is his comments
do seem to have broad acceptance
within America and beyond its borders
in Europe.
Highlighting why the comments may
be at odds with the American
constitution and way of life is certainly
useful, but such homilies still ignore
the reasons underpinning why broad
swaths of the American population
might actually want to suspend the
constitution as it applies to American
Muslims. To date, no one has
seemingly addressed these sensitivities.
Chico Khan-Gandapur
CIO,
KGM Capital Family Office,
London SW15, UK
An unvarnished
portrait of Spain’s
enfant terrible
Book review
By Tobias Buck
Politics in a Time of Crisis:
Podemos and the Future
of Democracy in Europe
By Pablo Iglesias
Verso (£10.99/$19.95)
Letters
guns per 100 residents in the UK (17
times higher gun ownership in the US,
and many of the guns in the UK are
owned by farmers and the like).
I wondered if these facts and figures
did not make them think differently
about gun ownership, easy availability
and gun-related deaths. Here are the
responses I got.
The first surgeon stated that if more
people had had guns at the Christmas
party in California, fewer would have
died (“a shootout would have saved
lives”, to quote him). The next surgeon
said he went for shooting practice the
afternoon after the shooting happened,
“just in case”.
The third reminded me that
Europeans always seem to blame guns,
where the real problem lies with the
Elvis: invented
When it come to bland
pop we lead the field
Sir, I appreciate Ludo Hunter-Tilney’s
concern that British pop stars have
started to put out songs that are
blandly designed to play to global pop
audiences (“‘Hello’ to bland British
pop that can be piped around the
world”, December 7).
He should try coming across the
pond, where Elvis was invented to
dumb down black R&B for white
crowds, there is not a single innovation
in any Auto-tuned song on the Top 100,
and even our pop country songs
feature Hip-Hop breaks. We are the
undisputed global champions of bland
pop.
Peter Fox-Penner
Falls Church, VA, US
Model no longer available
just when it’s needed most
Sir, The normal distribution (bell
curve) is frequently invoked in
financial analysis. Yet, as John Kay
reminds us (The FT’s Year in Finance,
December 9), in 2007, the stock of
Goldman Sachs “experienced 25
standard deviation events several days
in a row”, an outcome so statistically
improbable as to be a good indication
that the normal distribution model was
inapplicable.
So what was going on? Classical
probability, on which the normal
distribution is based, assumes
individual events having independent
Pablo Iglesias is a master of political
communication. The Spanish
politician can fire up a live audience of
thousands with a brief speech, charm
millions of viewers through the
television screen and engage
persuasively in one-on-one
conversations. The success of
Podemos, the anti-establishment
party he helped found, owes
everything to him, and to his special
gift with the spoken word. The written
word, however, is a different matter.
Politics in a Time of Crisis is published
in English just ahead of Spain’s general
election on December 20. It brings
together four essays: on the nature of
power, on Spanish history, on the
origins of the recent economic crisis
and on the present state of the nation.
It is padded out with a couple of
speeches and a foreword written by
Alexis Tsipras, the Greek prime
minister (a friend and political ally).
The book serves as an introduction
to one of the Iberian peninsula’s most
original and talented politicians of
recent years. Iglesias helped launch
Podemos in January 2014, with no
programme and no money. In May it
won 8 per cent of the vote in EU
elections. At one point this year, polls
suggested it might become the biggest
bloc in the Spanish parliament.
Support has fallen since but Podemos
is certain to enter Spain’s legislature
this month, a standard bearer for
Europe’s radical new left.
As Iglesias makes clear, the bulk of
the book was written before Podemos
was founded. It therefore provides an
few “bad guys”. And the fourth surgeon
said he had four guns littered around
the house. He wasn’t able to explain to
me why a physician living in a
salubrious part of town needed four
guns. Or may be he just felt this expat
Brit wouldn’t understand.
That is the news from Salt Lake,
which is a relatively very safe city. If
this is the response from so-called
educated scientists in the face of facts,
what hope is there of convincing the
public of the association of the free
availability of all types of guns with
gun-related deaths?
BCK Patel
Professor of Cosmetic & Reconstructive
Plastic Surgery,
University of Utah,
Salt Lake City, UT, US
outcomes: if I flip a fair coin multiple
times, the probability of heads remains
50 per cent each time regardless of any
previous outcomes. This condition is
approximated for many common
arrays of measurements, including
those in the stock market in tranquil
times, when individual transactions are
fairly random.
However, when there is a panic, this
condition is no longer met and the
transactions become highly correlated,
like the wheeling of a flock of birds or a
school of fish (for example, everyone
sells), and the normal distribution is no
longer applicable.
Like Mark Twain’s banker’s
umbrella, the model is no longer
available just when it is needed most.
Caveat emptor!
Dick Kidd
Corte Madera, CA, US
Some of the best tall
storytellers around
Sir, For once, Lucy Kellaway is dead
wrong (“Stories are best for the Bible
and in novels, not the C-suite”,
December 7). Plumbers are some of the
best storytellers around. Expected
arrival time, the problem, the tick
needed to pop out for the parts, and the
extra five minutes’ testing that adds an
hour to the final bill. Even Lambeth’s
renaming as “Pimlico”. Plumber tall
stories abound.
Simon Smith
London N3, UK
Sir, Is Lucy Kellaway (December 7)
the first journalist to complain about
a enough to the problems of France —
getting leaks?
Angela Polsen-Emy
Birmingham, UK
Only five occupations are
truly useful (not ours)
Sir, Lucy Kellaway (December 7)
reports that two occupations “are still
strangers to storytelling — plumbers
and dentists”.
Early in my life I adopted the theory
that there are only five truly useful
occupations. Plumbers and dentists
quickly filled the first two slots on my
list. Later life filled two more with
physical therapists and orthotists.
The last slot is still open. Sorry, Lucy,
but newspaper columnist fails to fill the
bill. (As does university professor,
unfortunately.)
Prof Bradley Lucier
Purdue University,
West Lafayette, IN, US
unvarnished glimpse of the author’s
thinking, without the layers of
moderation and calculation that party
politics demand. He says in the
preface: “This book is unusual.
Neither the thoughts set down in it,
nor the style of writing, were
conditioned by the kind of political
responsibilities I have now . . . Here
you have me, then — ready for a duel
in the OK Corral, wearing my last grin
as an enfant terrible.”
That makes the book sound
somewhat more thrilling than it is. Its
main flaw is the absence of an
overarching theme. Instead, there is a
series of vignettes and observations
that are at times pertinent and
illuminating. Often they are neither.
Iglesias gallops through complex
topics (the last century of Spanish
history, say) at such speed that he is
likely to leave most readers frustrated.
The former political scientist also
displays an unfortunate fondness for
academic jargon, and for the kind of
sentence that collapses into itself like a
soufflé. Take this one: “The fact is that
the readjustment of power relations
within the state apparatus is one of the
keys to transformative political
action.” Is that really a fact? And, if it
is, what the hell does it mean?
There is much that makes sense in
Iglesias’s critique of modern
capitalism, not least his (widely
shared) anger at the tendency to
“privatise the profits and socialise the
risks” in modern banking. But he slips
too easily into conspiracy theories and
generalisations. The eurozone crisis,
Monday 14 December 2015
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
Fed’s focus on creating
jobs comes at huge cost
to the rest of US society
Sir, Although he is universally
described as the “smartest man in the
room”, Lawrence Summers’ article on
“neutral” interest rates (“Central
bankers do not have as many tools as
they think”, December 7) is simply a
part of the next chapter of trying to
perpetuate failed Keynesian
perspectives and a desperate attempt
to institutionalise acceptance of
“observations” that masquerade as
policy-justifying “research”.
As developing countries grab a
greater share of world gross domestic
product through the provision of cheap
labour, governments and central
bankers of the industrialised west have
resorted to “serial stimulus” to try to
achieve historical levels of growth,
almost as if their countries were
entitled to those levels of growth. The
accompanying monetary stimulus has
driven down real interest rates, and
these rates are now included as data
points with the perverse circular
narrative that the lower levels
represent some form of appropriate
“real rate equilibrium”. (This is indeed
true if generational theft is an integral
part of policy.)
Ignoring the theft of seniors’ savings
imparted by negative real interest
rates, completely missing from
Professor Summers’ article is any
discussion about the effect on
Generation X’s and Millennials’ savings
required to plan for retirement, with
the negative real rates and lower risk
premiums on all asset classes, and
more importantly what this means for
current and future spending/growth.
It’s time to face the music: the simple
reality, as harsh as it may be for those
without marketable skills or even PhDs
and for central bankers protecting an
“intellectual” legacy, is that an
overextended focus on job creation is
not worth the long-term cost to the rest
of society in terms of the continued
upheaval of a free-market economy,
one characterised by a fair, market-
driven balance between lenders and
borrowers.
Thaddeus Walkowicz
East Hampton, NY, US
FN’s agenda resembles
Argentina’s Peronism
Sir, By making comparisons between
Marine Le Pen and Donald Trump,
Philip Stephens does not come close
and Europe (“Marine Le Pen not
Donald Trump is the bigger danger”,
December 11). Ms Le Pen and her
National Front’s agenda resemble
Argentina’s Peronism/Kirchnerism, the
most striking similarity being the
almost complete failure of the so-called
leading or mainstream politicians,
paving the way for even more
nationalism, anti-capitalism and
overspending. Two differences remain:
first, France is less corrupt than
Argentina; second, Argentina is able to
make things better by skilfully using its
own currency. France does not have
this tool. Or not yet.
Erich Heini
Lucerne, Switzerland
COMMENT ON FT.COM
Nick Butler’s energy blog
Laurent Fabius’s crucial role in Paris makes
him energy personality of the year
www.ft.com/nickbutler
for example, is cast as part of an
international master plan to convert
the European periphery into a factory
for “low-paid, labour-intensive
products and services”. Iglesias adds:
“Our province of Spain has been
selected, along with Greece, Portugal,
Italy and Ireland, to act as the slum of
the Europe invented by the Party of
Wall Street.”
What shines through is Iglesias’s
determination to rid the left of its
ambivalence towards political power.
He ridicules the “white knights of the
purity of principle”, too obsessed with
theory to actually fight for change.
There are important insights
scattered throughout, not least about
the economic forces and political
frustrations that allowed Podemos to
flourish. In some ways, however, the
arguments are undermined by the
simple passage of time: for all the deep
economic problems that remain,
countries such as Spain and Ireland
have yet to be converted into slums.
On the contrary, European
Commission data show they are the
fastest-growing economies in the
eurozone this year. Spain’s established
parties are battered and wounded —
but polls suggest they will remain the
largest forces in parliament.
Iglesias ends his book with four
simple words: “Tomorrow belongs to
us.” He may yet be proved correct.
Right now, however, the old order
looks pretty resilient.
The writer is the FT’s Madrid
bureau chief
Monday 14 December 2015
OPINION
Jeffrey
Sachs
T
he Paris agreement and the
supporting decisions are a
diplomatic triumph. They
are an act of true global
co-operation of historic sig-
nificance. Yet it is crucial to distinguish
between diplomacy and implementa-
tion. The diplomats have done their job:
the Paris agreement points the world in
the right direction with sophistication
and clarity. It does not, however, ensure
implementation, which remains the
domain of politicians, businessmen,
scientists, engineers and civil society.
Global agreements are necessary for
global problem-solving and collabora-
tion around a shared goal. The Paris
agreement stakes out a global commit-
ment to keep warming “well below 2C”
and to pursue efforts to limit warming to
1.5C. This is serious and wise — the tar-
get has been improved (from the previ-
Trump is not America but he could be
AMERICA
Edward
Luce
D
ear Barack, You made a fine
address to the nation last Sun-
day — so fine that a lot of folks
misunderstood it. They say
you’re an apologist for Mus-
lims and that you’ve already checked out of
the job. They weren’t listening. They were
hearing what they’re programmed to hear. I
wish I could deliver such a cool, analytical,
address. But that’s not me. Someone must
speak to the fears of our white middle class
before this gets out of control. Someone
must reassure the world that Donald
Trump is not America. I believe that person
is me. We need to spell out what we are
going to do — not just what we’re not going
to do, as you did last week. No one can speak
from the head like you can, Barack. Let me
be the one to speak from the heart. Yours,
Joe Biden.
Fellow Americans, we live in troubled
times. Terrorists the other side of the
world cut off the heads of US citizens
and our European friends and say “God
is great” while they’re doing it. Here at
home, for no reason we can fathom, a
quiet suburban couple suddenly turn on
their neighbours and co-workers with
semi-automatic weapons. In the name
of religion, thousands of young men and
women — some of them from these
shores — quit promising lives to join a
death cult that sees us as its mortal
enemy.
This isn’t your grandfather’s war, or
your father’s — with their tanks and
their planes. This is a new kind of men-
ace in which the foe is invisible until it is
too late. Fear and suspicion are its fuel. I
get why people are scared. Believe me I
do. I also know in my heart that we must
not be governed by our fears. Franklin D
Roosevelt — maybe the greatest Ameri-
can of all — said the only thing we have
Watch the presses roll as Europe scrambles to fix its banks
EUROPE
Wolfgang
Münchau
T
here is a story playing out in
Italy that teaches us much
about the practical and
political limits of how you
resolve a debt crisis. The
European strategy of resolving bank cri-
ses through orderly legal resolution
processes will ultimately have to be
superseded by the crudest form of debt
resolution in existence — old-fashioned
money-printing by the central bank.
The story is about the suicide of an
Italian pensioner last week after he real-
ised that he had been “bailed-in” during
a bank resolution procedure.
He had bought savings certificates
from his bank, which, like so many
Let’s hail the Paris agreement and get to work
ous “below 2C”) in light of scientific evi-
dence on the grave risks of a massive
rise in the sea level. The parties also aim
to reach a global emissions peak as soon
as possible.
Nor is the grim truth hidden from
view. The voluntary intended nationally
determined contributions at the heart
of this agreement do not yet add up to a
2C limit, much less a 1.5C limit. The par-
ties note that “much greater emissions
reductions will be required”. This is not
a sham agreement, it is diplomats telling
the world the truth — that we should
aim high but are not yet doing so suffi-
ciently.
The agreement covers the important
bases: common but differentiated
responsibilities; the need for financing
(including the much-debated $100bn a
year by 2020, now noted as a floor for
post-2020); the need to develop and dis-
seminate technologies; the need for
capacity-building in many parts of the
world, and the need for new institutions
to help support all of this.
The text is balanced, smart, compre-
hensive, and encouraging. Real issues
are discussed. A timeline for review and
upgrading of commitments every five
to fear is fear itself. He was right then
and he is right today. Isis must be
defeated by all means practical. But we
must do so with our values intact. We
must not repeat the mistakes of George
W Bush.
We also live in confusing times. When
I was growing up in Scranton, Pennsyl-
vania, a strong middle class was the
backbone of America. As the saying
went, if you worked hard and played by
the rules, you got ahead. If I had traced
an arc with my arm, within a radius of a
few hundred miles I would have taken in
the industrial engine of the world. These
were the auto plants — the Buicks, the
Fords, the Cadillacs — that FDR con-
verted into the war factories that
defeated fascism and saved the world
from its darkest hour. These were your
forebears.
Today, most of those plants have
gone. The rules have changed. Too
Fellow Americans, we are
in danger of electing
someone who could do
great damage
many of you work day and night at three
jobs just to keep your head above water.
If the polls mean anything, most of you
see no better future for your children.
We no longer trust our leaders when
they say it will all be fine. Economists
define the middle class as $50,000 a
year or whatever. But this isn’t about
numbers. Being middle class is a value.
It’s about reward for effort and hope for
the future.
It breaks my heart that the life expect-
ancy of middle-aged white Americans is
falling. Don’t get me wrong. I’m
delighted to know that it’s rising for His-
panics and not falling for African Amer-
icans. But it is tragic that so many lives
are being cut short by rising suicide
rates, alcoholism, a suburban heroin
epidemic and addiction to prescription
opioids. When hope is lost fear takes
over. It is not my style to tear other peo-
financially inexperienced savers, he
mistook for a deposit.
In Italy, in particular, many ordinary
savers bought these certificates. Legally,
however, these certificates constitute
junior debt, one of the least secure asset
classes of all. Under a new European law
when a bank fails, first the shareholders
pay, then the junior bondholders, and
only then do national and European res-
olution funds pay up.
The pensioner’s bank was one of four
small regional banks that recently went
through resolution. Not only did the
shareholders and junior bondholders
lose out. The cost also swallowed about
four years of future contributions into
the Italian national bank resolution
fund. Since these are not the only imper-
illed Italian banks, this case raises some
troubling issues about the whole proc-
ess of dealing with ailing financial insti-
tutions. The EU now has the legislation
to deal with bank rescues — the so-
called bank recovery and resolution
directive. But the system is totally
★ FINANCIAL TIMES
Comment
years is agreed, and a first stocktaking is
proposed for 2018 — before even the
entry into force of the agreement.
Cynics will say the agreement is unen-
forceable. They are right. They will
imply that the agreement is therefore
irrelevant, or doomed to fail — but in
this, they are wrong. Agreements such
as these appeal to our better angels, as
well as to national self-interests. They
strengthen resolve, clarify pathways,
This is not a sham
pact, it is diplomats
telling the world
the truth
spur global responsibility, promote ini-
tiatives and generally make it more
likely to avoid the freeriding that has so
often stymied global co-operation.
As President John F Kennedy said
about goal-setting, in the context
of nuclear non-proliferation, “by defin-
ing our goal more clearly, by making it
seem more manageable and less
remote, we help all people to see it, to
Matt Kenyon
underfunded. In particular, it lacks a fis-
cal backstop.
This raises important questions about
macroeconomic policy in the eurozone,
and for the European Central Bank in
particular. In an ideal world — the world
of finance professors — you would end
any private-sector debt crisis through a
resolution process. This would include
This is how the crisis may
ultimately get resolved:
through old-fashioned
money printing
bankruptcy, bank resolution proce-
dures, or the creation of bad banks
where the government takes on the bad
assets of floundering institutions.
We Europeans are notoriously bad at
resolution — special interests usually
stand in the way. We are in the extend-
and-pretend camp. We extend non-per-
draw hope from it, and to move irresisti-
bly toward it”.
The 2C upper limit is feasible — just.
The Deep Decarbonization Pathways
Project, working in 16 countries
accounting for more than 70 per cent of
global emissions, has demonstrated
economically and technologically feasi-
ble pathways to low emissions by 2050.
The 1.5C upper limit is likely to be
breached in the coming decades but
could possibly be regained later in the
century through large-scale net nega-
tive emissions achieved via biological
and geological carbon storage.
One of the notable commitments in
the Paris agreement builds on the DDPP
by calling on all countries to prepare
“long-term low greenhouse gas develop-
ment strategies”. These should aim for
low emissions by 2050, and should be
submitted to the UNFCCC Secretariat by
2020. This will be a major spur to clear
thinking about the deep transforma-
tions of energy and agriculture that are
required for the 2C and 1.5C limits.
The diplomats have done their job.
Laurent Fabius, French foreign minister
and president of COP21, is a diplomatic
genius. Ban Ki-moon, UN secretary-
forming loans, and pretend they are still
good. Italy’s statistics tell us that the vol-
ume of these loans is €200bn. Believe
that if you will.
When pensioners start killing them-
selves, the political support for this
process is hitting a limit. This is now
happening in Italy. The country has no
fiscal capacity for big bank bailouts. The
government has exhausted the room for
fiscal manoeuvre allowed under Euro-
pean rules. So in terms of private sector
debt resolution, Italy — and other highly
indebted countries — have run out of all
the legal options.
Resolving a public or private sector
debt overhang through money printing
is called debt monetisation — and it is
strictly illegal under European law.
The central bank is allowed to buy
debt instruments but only for the pur-
pose of conducting its monetary policies
— not to alleviate anyone of their bur-
den. This opens a large grey area.
The official purpose of the ECB’s pri-
vate and public sector asset purchase
general, has made a historic contribu-
tion through years of steadfast, patient,
quiet, and urgent diplomacy with the
world’s political, business, and scientific
leaders. Three politicians deserve spe-
cial praise: US President Barack Obama,
who has braved the madness of a cor-
rupted Republican party owned and
operated by the oil lobby; Chinese Presi-
dent Xi Jinping, who has steered his
country realistically towards a breath-
able future; and French President
François Hollande, who took on the
political risks of this conference and
managed brilliantly even as his country
was reeling from terrorism. The techni-
cal leaders, notably Christiana Figueres,
UNFCCC executive secretary, and Lau-
rence Tubiana, French climate envoy,
deserve special recognition.
The urgent, long overdue challenge of
implementation now begins. This is
not a job for diplomats but for
business leaders, engineers, financial
managers and politicians. Yet now we
have the legal framework and shared
vision to move us irresistibly towards
our goal.
The writer is director of the Earth Institute
at Columbia University
ple down. In many ways Mr Trump is a
fine American. In which other country
could you name half the golf courses
after yourself and turn it into a platform
for the presidency? Where else could a
reality TV star be taken seriously on the
hustings? OK, I know — it happened in
Italy. But Italy aside, all things are possi-
ble in America and that is part of what
makes us great.
Fellow Americans, we are in danger of
electing someone who could do great
damage to our country. When fear takes
over, humans forget reason. Since 9/11
almost a quarter of a million Americans
have died in gun violence. Thousands
were children. Some of them were
gunned down in their classrooms. We
did not call these acts of terrorism. Don’t
misunderstand me. I am not suggesting
we take away everyone’s guns. I am real-
istic. But you should know that your
chances of being killed in everyday gun
violence are several thousand times
greater than dying from terrorism on US
soil. Forty Americans have been killed
by terrorists since 9/11. We need to keep
our sense of perspective.
Who are we? Is America turning into a
game-show democracy that can be
manipulated to laugh and cry and boo
on a whim by the host with trophy
wives? Are we the kind of people who
would close our shutters to a fifth of the
world and two per cent of our law-abid-
ing citizens? Would we set up a police
state so that we could round up 11m
Mexicans? Is that who we are?
I know the answer our grandparents
would have given. They gave their lives
to prevent such a world. We were resil-
ient then when the threat was far
greater. Today, we often seem to be
scared of our own shadows. I hope I am
wrong about that. In my heart I know I
am. Our enemies hope otherwise.
So go ahead — applaud Mr Trump. We
live in a democracy. Make him a winner.
But do so in the knowledge of what we
would be losing. The world has not yet
given up on America as its beacon. It’s
time to fire Donald Trump.
edward.luce@ft.com
programmes — quantitative easing — is
to achieve a higher level of inflation. If
this goes on for a very long time — as I
believe it will — it may end up as an
ersatz debt resolution instrument.
The German policy establishment
now openly accuses the ECB of debt
monetisation. You will not get many
members of the governing council to
admit that debt monetisation is the rea-
son for QE. But whatever the ulterior
motive, the effect may be different from
what they intended.
So, this is how the crisis may ulti-
mately get resolved: not through debt
resolution, not through a fiscal bailout,
but through old-fashioned money-
printing done under some legally sound
disguise. The reason the eurozone will
end up monetising debt is not because it
is the intrinsically best way to do it, but
because rules and political limits leave
them with no choice. Expect this proc-
ess to take a very long time.
munchau@eurointelligence.com
9
Doha has failed:
we need a
new type of
global trade deal
OPINION
Michael
Froman
T
his week trade ministers
from around the world will
gather to engage once again
in the Doha Round of talks
which, for all the initial
hopes it represented, simply has not
delivered. If global trade is to drive
development and prosperity as strongly
this century as it did in the last, we need
to write a new chapter for the World
Trade Organisation that reflects today’s
economic realities. It is time for the
world to free itself of the strictures of
Doha.
While these talks have drifted, other
efforts have raced ahead. Leading a
group of 12 nations, the US recently con-
cluded the Trans-Pacific Partnership,
which raises standards and tackles
emerging issues across nearly 40 per
cent of the global economy. Meanwhile,
the US and the EU are moving forward
with the world’s largest bilateral agree-
ment. Trade initiatives outside the
WTO have become the norm, with hun-
dreds of agreements signed by scores of
countries since Doha was launched.
Experience, however, suggests that
the WTO can deliver with pragmatic
approaches. Ratification of the Trade
Facilitation Agreement, which would
benefit developing countries even more
than rich ones by streamlining the flow
of goods across borders, is within reach.
An expansion of the Information Tech-
nology Agreement promises to elimi-
nate hundreds of tariffs on $1tn of tech-
nology products, from MRI machines to
semiconductors. Also encouraging is
progress on an agreement that would
liberalise trade in environmental goods.
So, two-way deals are working.
Regional pacts are working. Groups of
countries have struck sectoral deals.
Only multilateralism — the attempt to
reach a comprehensive global deal — is
stuck. Getting it unstuck begins with
acknowledging that Doha was designed
in a different era, for a different era, and
much has changed since.
Two-way deals are
working. Regional pacts
are working. Only
multilateralism is stuck
When Doha was launched in 2001, the
focus was on US and EU agricultural
subsidies, which have since been cut.
Now, some emerging markets are the
biggest providers of agricultural subsi-
dies but would be exempt under Doha
from cuts. If you are a poor farmer fac-
ing a global market distortion, it does
not matter where the subsidies causing
it came from. Artificial distinctions
between developed and emerging econ-
omies make no economic sense.
Today, Doha negotiations remain
deadlocked. After 14 years, including
the past two years of intensified engage-
ment, there is no light at the end of the
tunnel. Cecilia Malmström, EU trade
commissioner, and many others have
been clear about the need to chart a
more productive path.
That route forward is a new form of
pragmatic multilateralism. Moving
beyond Doha does not mean leaving its
unfinished business behind. Rather, it
means bringing new approaches to the
table. Doha issues are too important to
leave to the Doha architecture that has
failed for so long.
Freeing ourselves from the strictures
of Doha would also allow us to explore
emerging trade issues. Many developing
countries have encouraged new discus-
sions on issues like ecommerce and the
needs of small businesses.
One way or the other, this week’s
WTO ministerial conference in Nairobi
will mark the end of an era. The US is
still working to secure a package of
measured but meaningful results, but
what cannot be achieved in Nairobi will
not be achieved by trying again with the
same failed approach. Pretending oth-
erwise would intensify the search for
solutions outside the WTO, raising
questions about its relevance in trade
negotiations.
With global growth slowing and une-
ven and many traditional economic
tools constrained, trade policy has an
outsize role to play in spurring inclusive
growth. Multilateralism still promises
the greatest economic gains in theory.
To realise those gains in practice, we
need the courage to look, think, and act
beyond Doha.
The writer is the United States trade
representative
10
Baby-boomer bosses are helping to save the world
New fellowships tap into
older leaders’ passion to
tackle poverty, health
and green issues,
says Rebecca Knight
A
bout a year and a half ago,
Ken Kelley, the founder of
Paxvax, a vaccine company
that focuses on the travel
industry, became afflicted
with what he calls an “intellectual itch”.
He wondered why certain diseases, such
as Ebola and dengue fever, lack vaccine
protection.
“I was curious and passionate about
this problem because it seemed to me to
be a solvable one,” says Mr Kelley, who
worked for 35 years in Silicon Valley as a
venture capitalist and biotech entrepre-
neur. By his own admission, he became
consumed by this vaccine question and
talked about it with clients, colleagues,
friends and anyone who would listen.
During one conversation, a fellow VC
encouraged him to pursue a solution
through Harvard’s Advanced Leader-
ship Initiative fellowship programme.
The programme, now in its eighth
year, is designed for experienced profes-
sionals who want to tackle problems
such as poverty, global health and the
environment. For the fellows — most
of whom are in their fifties and sixties —
it offers both an alternative to retire-
ment, and an opportunity to develop
new skills and relationships before
embarking on a “second act” career in
public service.
For Harvard, the goal of the fellow-
ship is to create a class of leaders who
have the expertise and connections to
address some of the world’s most press-
ing problems.
“It’s been a transformational year
intellectually, personally, professionally
and culturally,” says Mr Kelley, who
completed the programme last month.
In Boston recently, he unveiled his
plan of action: a proposed Benefit Cor-
poration focused on creating vaccines
for preventable diseases, a public-
private partnership devoted to the issue
and a global fund that would finance
vaccine development.
“I am going to try all three — my wife
thinks I am crazy,” he says. “I don’t care
which one works. We just need one.”
Mr Kelley’s can-do spirit is a common
characteristic of this year’s class of 43
fellows, says Rosabeth Moss Kanter, the
renowned professor at Harvard Busi-
ness School and chair of the ALI.
“This is a programme for people who
think big about problems and who want
to put leadership to work on messy,
complicated systemic change issues,”
she says.
The school does not stipulate pre-
requisites for the programme but fel-
lows often include former chief execu-
tives, foundation presidents, top attor-
neys and high-ranking government offi-
cials. According to Prof Kanter, fellows
typically have 20 to 25 years of leader-
ship experience, a proven ability “to
work in an unfamiliar context” and a
desire to work on a social issue.
‘We’re not alone in telling
people: don’t play
golf — or don’t just play
golf. Do good works’
“There are two main stages of adult
life where people tend to stand back and
think about big problems,” says Prof
Kanter. They are roughly “the college
years” and later “when you’re at the top
of your career but you don’t need to be a
careerist any more because you’re not
struggling and striving for every last
dollar”, she says. “In the middle, when
you’re raising a family, you don’t neces-
sarily have time.”
Surveys show that for the baby-
boomer generation, members of which
are either just retired or about to be, the
impulse to give back is widespread.
Many eschew old ideas of retirement —
mornings on the golf course and travel
to exotic destinations — in favour of so-
called encore careers, jobs that blend
income, personal meaning and often an
element of positive social impact.
The ALI, which began in 2008 as an
experiment, grows by about 10 per cent
a year. Other schools and organisations
have started similar schemes. Last year,
Stanford introduced its Distinguished
Careers Institute. “We’re not alone in
★ FINANCIAL TIMES
BUSINESS EDUCATION
Career transition
Stanford focuses on
personal development
Philip Pizzo, director of the Stanford
Distinguished Careers Institute, says
his motivation for founding the
institute was “highly personal”.
When he was a doctor doing his
internship at the Children’s Hospital in
Boston, US, in the 1970s, he noticed
something troubling about senior
physicians. As they neared retirement
age, they were moved out of their
roles and many of them did not have
a plan for the next phase of their
lives. “I made a personal vow that
I would have a transition plan in
place whenever my final phase came,”
says Dr Pizzo, 71.
In 2012, he stepped down as dean of
the Stanford School of Medicine. He
planned to get a doctorate in history
but instead he launched the DCI.
Like Harvard’s ALI, Stanford’s
programme lasts a year and is geared
for people who have 20 to 30 years
of professional achievements.
It is, however, different to Harvard’s
programme as it takes a “holistic
approach”, rather than focusing
on leadership training. “It’s more
about personal transformation,” says
Dr Pizzo. Some fellows arrive with a
plan while others “know they want to
do something good for the world.
They just don’t know what it is yet.”
He adds: “It’s good to have the
opportunity to think before you leap.”
The programme launches its second
class next month.
telling people: don’t play golf — or don’t
just play golf. Do good works. Tutor chil-
dren. Serve on boards,” says Prof
Kanter, who is in her early seventies.
“We encourage other institutions to
[start similar initiatives].”
The Harvard programme comprises a
core curriculum organised around
themes such as climate change and edu-
cation, but fellows are encouraged to
attend classes across the university to
widen their knowledge. They also go on
a guided field trip somewhere in the
world — in June, they travelled to Mum-
bai, India; next year they will go to São
Paulo, Brazil.
Throughout the year, fellows mentor
undergraduate students, consult faculty
members on research and participate in
other activities, such as campuswide
summits. “The fellows are great connec-
tors across the university,” says Prof
Kanter. “We all get inspired by their
Monday 14 December 2015
enthusiasm.” Lauren States came to the
programme this year after a 36-year
career at IBM, where she held a variety
of senior positions. Her husband had
retired in 2011 and was immersed in his
own public service projects when she
began thinking about her next stage.
“I wondered: what does my second
act look like?” Ms States says. “I decided
to become more engaged around an
issue I was passionate about: bringing
more women of colour into the technol-
ogy industry.”
The programme, she adds, has been
energising. “I looked at it as a way to
pivot in a new direction and to leverage
my corporate network in the social and
public sector in a structured way.”
Many of the fellows arrive at Harvard
with only vague ideas about the prob-
lems they want to address and how they
will go about it. But by the end, they
have developed an action plan. This
might entail building a public campaign
for a cause, launching a foundation or
social enterprise, or writing a book.
In the case of Monty Simas — whose
career has been in international
business development and finance
— it means starting a new company.
His proposed technology venture,
AgResilience, aims to improve water
and food availability in developing
countries.
Mr Simas, who also runs a water-
related geopolitical risk advisory firm in
Nevada, says he was drawn to the pro-
gramme because he was “looking for
the opportunity to be pushed. I can
already write about this subject and talk
about it at conferences. But I wanted to
do something sustainable, measurable,”
he says.
At the age of 48, Mr Simas is on the
young side of the cohort. “Having
enjoyed some success [in my previous
career] I thought, ‘wouldn’t it be awe-
some to focus my energy and skills on
water scarcity issues’,” he says. “This is
the next step in my personal and profes-
sional life.”
Video: Professor Elroy Dimson
discusses his research on fine
wine investment
www.ft.com/b-school-video
Monday 14 December 2015 ★ FINANCIAL TIMES 11

BUSINESS EDUCATION

Where grace and art lead to new thinking Pick of 2015

Highlights from this year’s content

Ballet dancer teaches a new Boise, Idaho, which he had co-founded

approach to creativity,
writes Jonathan Moules
John Michael Schert looks like any
other soberly dressed academic when
he arrives at the London campus of Chi-
cago Booth School of Business.
Unlike his academic colleagues, how-
ever, Mr Schert would be equally at
home in ballet tights, on a theatre stage,
performing to an audience of hundreds
of people.
Before joining the University of Chi-
cago Booth two years ago as its inaugu-
ral visiting artist, Mr Schert was a full-
time dancer.
He studied at the prestigious Ameri-
can Ballet Theatre in New York, and has
performed in venues from Athens to
Los Angeles.
Although many business schools
have visiting artists, the expectations
of Mr Schert are different to his counter-
parts.
Elsewhere, a visiting artist might be
expected to produce work for exhibi-
tions or performances on the business
school’s campus.
Instead, Mr Schert is expected to
teach, explaining to MBA and other
masters students how creative process
can be translated into innovative think-
ing for the corporate world.
“We in the arts world have done
ourselves a disservice by making our
performance the focus of attention,”
he says. “There is as much to be learnt
Step up: John from the process that we use to create
Michael Schert, that performance.”
left, shows how Mr Schert’s lectures sometimes
to use the involve bringing in another professional
creative dancer to trip the light fantastic, while
techniques of he confines himself to talking about the
performance challenges he has faced and how these
Anne Ryan
may resonate with people in business.
The overall point of the visiting artist
position, Mr Schert says, is to explain
that the creative process in performing
arts is not that different to what hap-
pens in the corporate environment.
An example of this would be to show
that, like people in business, dancers
experience failure, and the way
that they deal with it can be in-
structive. “Falling is not the worst thing
that happens on stage,” he says. “If you
fall you get up. It is how you get up
that counts.”
Some fellow dancers have struggled to
understand why Mr Schert would want
to move into business education,
he admits.
“There are so many silos in this
world,” he says. “I see myself as a trans-
lator, not living in either the world of
dance or work.”
Before joining Chicago Booth, Mr
Schert was executive director of the
Trey McIntyre Project, a dance group in
nine years earlier. Podcast: FT Start-up Stories
It was during a tour with this com-
pany that he was introduced to Harry In this 10-part series Jonathan
Davis, Chicago Booth’s professor of crea- Moules speaks to entrepreneurs on
tive management, and the pair immedi- the front line, from Lorne Vary of
ately hit it off. Brompton Bicycle, pictured, to
Prof Davis notes that he had been James Watt, who built a community
using concepts and tools from theatre of fans for Brew Dog, his craft beer.
and music for his courses on strategy These are real stories from those
and creativity for the best part of 20 who have done it, from idea to exit.
years. Hiring Mr Schert was a “no
brainer”, he says. www.ft.com/start-up-stories
“It was serendipity,” says Mr Schert.
He had been considering leaving the
Trey McIntyre Project for a while, hav-
ing spent almost a decade running Reinventing Business Schools
the group.
“As you move through life [you] grav- Business schools have to
itate to different mentors, different think ahead to be successful.
artistic leaders,” Mr Schert says. “When Our stories include how students
I met Harry I knew this was the person are shaping the curriculum; the
I must study under.” competition that professors face
Prof Davis would like to expand his from chief executives, and why
roster of visiting artists at Chicago Booth not every would-be MBA should
to five, claiming that they can help bring be wearing a blue suit and
business concepts to life in a way he and designer shoes.
other academic staff cannot.
He likens the teaching techniques of www.ft.com/reinventing-bschools
Mr Schert to those of a surgeon instruct-
ing students by letting them watch the
performance of an operation. Video: Strong brands pay less
“When we talk about process we
use a flow chart, but when you do that Nader Tavassoli, a marketing
you can miss the essence of the process,” professor at London Business
he says. School, explains how brand
“To talk about a process is nowhere identity can influence executive
near as helpful as watching someone pay. Volkswagen, for example,
perform it.” may need to offer more money
following the emissions
scandal.

Ten Questions
My dad gave me
the best advice
Lynda Gratton is a professor in
management practice at London
Business School. She joined as an
assistant professor 25 years ago,
and specialises in human resources.
Her first full-time job was as a
psychologist at British Airways. Her
latest book is called The Key.
Who are your greatest business the best-selling business book in My father used to say: “Don’t
influences? Japan. It outsold Fifty Shades of conform.” It meant I had permission www.ft.com/brands-pay-less
I read a great deal and try to read Grey, though sadly only in Japan. to become what I wanted to be
widely. One of the themes I often I lectured at Tokyo university, went and to explore many routes to
revisit in my writing is the power of on a couple of television shows and happiness and productivity. Mixing an MBA with motherhood
relationships. Philosophers such as spoke to a group of 500 women. It
Bertrand Russell really understood was a blast. What are your top networking tips? Former television host Halla Koppel
this. The sociologist Anthony I don’t consider myself a networker, started her business degree at
Giddens has also been influential. What do you enjoy most? so it was a surprise when I was Oxford Saïd just two days before
I love variety and autonomy. I travel named in GQ’s 100 most networked she was due to give birth. She is
What has been your best all over the world, and I like to meet women list. I get my ideas across determined to manage the
business trip? people and hear their stories. by writing books. challenge, and her record suggests
I have been to Japan many times, it would be unwise to place a bet
but last year I went to talk about my What has been the best advice Read the other questions at against her succeeding.
book The Shift, which had become given to you? ft.com/tenquestions
www.ft.com/mba-and-motherhood
12 ★ FINANCIAL TIMES Monday 14 December 2015

BUSINESS LIFE

Introducing
‘
At this time of year, my mind naturally Flannel winners with chapter-and- Neither do I want the stock examples dazzling bit of research by academics
turns to guff. Every December I open verse from me on why they are so that lazy people reach for whenever the in Canada who presented people with

Guffipedia, an the cupboard in which I store the worst

examples of the year’s jargon and begin
the search for winners of my annual
outlet for all Golden Flannel awards.
This year, as ever, the cupboard is
victims of BS stuffed with ugly words and phrases
that people have written or spoken in
2015. To pick a few at random, there is
“passionpreneur”. There is delta (to
mean gap). There is to solutionize, to
mindshare and even to role-model. All
are new. All reach new linguistic lows.
There are two tragedies here. One is
that people actually talk like this. The
ghastly (in case you are too steeped in
the stuff to be able to work it out for
yourself). All my favourite goliaths of
guff are credited — including Angela
Ahrendts, Dick Costolo and Tim
Armstrong — as are some more
obscure figures who have shown an
outstanding dedication to drivel.
The point of Guffipedia is not just for
you to admire the extent of my guff
collection, but to help me curate it
going forward, as they say in Guffish.
I am urging you to submit horrible
new words or phrases, to have a stab at
subject of jargon is raised. There will be
no “open the kimono” on Guffipedia, as
I have never heard anyone say that in
earnest. Rumour has it Jamie Dimon
once used the phrase, but the only
times I’ve heard it are by people lamely
protesting at how much they hate
jargon.
Not only will Guffipedia be a
valuable work of reference, it will serve
a higher purpose. This is not to shame
business people into speaking with
clarity, simplicity and elegance, as that
is not going to happen. There are too
words taken from Deepak Chopra’s
Twitter feed that were rearranged into
extra-meaningless aphorisms. Yet on
reading phrases such as “Wholeness
quiets infinite phenomena” many of
All my favourite the bullshittees claimed to detect
meaning. The more they a) believed in
goliaths of guff the paranormal and b) were fans of Mr
are credited, Chopra, the more they judged the
drivel to be profound.
including Angela Extending these findings to
Ahrendts, Dick management suggests that the more we
accept the prevailing business culture
Costolo and Tim and the more we rate the people who

other is that the only person with a key
to my guff cupboard who can enjoy its
riches is me.
The first of these tragedies has no
remedy. Bullshitters will go on
bullshitting. The law of bullshit, as I
have often pointed out, dictates that
the market for it has only one phase —
the bull phase.
Yet for the second tragedy, help is at
hand. This year the FT has decided to
Lucy Kellaway let readers rummage in my cupboard
and marvel at the hideous pile of
Onwork wretched words and phrases within.
To this end we have created
Guffipedia, a repository for the terms
that I’ve railed at over the years. You
will find previous years’ Golden
translating them into serviceable
English, and to state where you found
them. You don’t need to name the
perpetrator (though it would be nice if
you did). “Heard in a lift” is fine — so
long as it actually was. And if you get
your entries in before the end of the
year, they may end up winning a prize
in my 2015 Golden Flannel awards,
announced the first week in January.
To keep standards high at Guffipedia
I will be strict about what I allow in. So
if you have just started to get annoyed
at the way people say “reach out” then
Guffipedia is not for you. It is true that
the phrase is annoying — but then it
has been annoying these past 15 years
at least.
many good reasons for continuing to
talk guff. It makes you sound clever; it
shows you belong to a club; it is an
alternative to thinking and, most
important, it means you can say things
that sound decent but are actually
meaningless — very useful indeed.
Instead Guffipedia is conceived as a
supportive club for bullshittees.
This last is another new word that I
have plucked from my cupboard, only
for once I rather like it. Its grammatical
form is unpromising — mentee,
sponsee and tutee are much to be
disparaged. But bullshittee gives us a
neat way of talking about what being
on the receiving end of bullshit is like.
I found the word in an unusually
’
Armstrong lead it, the greater the likelihood of us
swallowing whatever they tell us —
however nonsensical.
Guffipedia is an invitation to stop
swallowing. Next time you hear
someone say: “This deal, we feel, is the
right deal to go forward. In the go-
forward scenario, we plan on doing the
deal”, which was precisely the bullshit
AOL’s Tim Armstrong spouted when it
was bought by Verizon this year, don’t
swallow it. Be a proactive bullshittee,
spit it out and send it our way.
Guffipedia: ft.com/guff
lucy.kellaway@ft.com
Twitter: @lucykellaway

Monday interview. Peter Wennink, chief executive, ASML Working smarter

How to deal with the ‘toxic’

The memory maker staff who harm a business
EMMA DE VITA

There are some workers someone who is a bit less

The head of the Dutch whose behaviour is so bad
that they will cause real
company underpinning harm to an organisation.
the semiconductor sector They are so awful that
colleagues and customers
tells Leslie Hook about pay, will leave the organisation to
Europe and Moore’s Law avoid working with them,
and their behaviour can
even be infectious.
t is one of the hardest engineering Research at Harvard
productive and confident
but cares more about their
colleagues,” he says.
His advice is to use
psychological tests to detect
how self-regarding a
candidate is, to look for any
philanthropic work they
have done, and to phone
their references to find out

I problems of all: how to fit more

transistors on a silicon chip. Yet the
man at the helm of a company
whose sales depend on solving this
problem is not an engineer, but an
accountant.
With his blue open-necked shirt and
firm handshake, Peter Wennink, chief
executive of the Netherlands’ ASML,
still has an air of the consultant about
him — he was at Deloitte for two dec-
ades. But after 17 years at ASML, a bit of
the engineer has clearly rubbed off. As
we start to talk about chip technology,
he can’t resist grabbing a piece of hotel
stationery to draw a physics equation
that calculates the resolution of laser
etching. Words such as numerical aper-
ture and lambda are tossed around.
This geekery is befitting. ASML is the
world’s largest maker by sales of litho-
graphy equipment, which is used to
print circuit patterns on silicon wafers
to make chips. Its most sophisticated
machines cost more than €100m each
(“like selling commercial aeroplanes,”
Mr Wennink smiles) and it has a market
share of more than 85 per cent.
ASML is hardly a household name,
but the technologies it develops are the
backbone of the semiconductor indus-
try. The ever-smaller chips produced by
its machines are in smartphones, com-
puters, cars, data centres and pretty
much everything we consider technol-
ogy today. With an enterprise value of
€34bn, ASML is also a mainstay of the
European technology sector.
We are sitting in a conference room at
the Palace Hotel in San Francisco; Mr
Wennink has come to Silicon Valley to
visit ASML customers and subsidiaries.
The company had an important break-
through this year, when its machines
used extreme ultraviolet (EUV) light for
silicon etching. The process involves
shooting a laser at molten tin to produce
plasma, which emits the extreme ultra-
violet light that is then focused into a
beam using mirrors in a vacuum cham-
ber. It sounds complicated, because it is.
The research and development behind
the technology cost some €6bn.
The next step, Mr Wennink says, is to
make an even more precise EUV beam.
However, the new EUV machines
have not been selling as fast as expected,
at a time of increased price pressure and
consolidation in the semiconductor in-
dustry. Several analysts have cut their
forecasts for ASML next year because of
concerns over the timing of EUV
machine shipments, and ASML’s share
price has fallen 8 per cent over the past
12 months. Over time ASML has been
selling fewer, more expensive machines
to a customer base that is also consoli-
dating, in part to afford the more expen-
sive equipment.
When not obsessing over ASML’s next
machine, Mr Wennink has a personal
ambition to help develop more tech
companies in Europe, especially start-
ups. ASML’s home town near Eindhoven
in the Netherlands has become some-
thing of a hub for hardware start-ups. It
helps that Philips and NXP Semicon-
ductors are nearby, and ASML has also
made start-up investments.
Tech start-ups in Europe can have a
tough time, Mr Wennink says, because
Small is fundraising in Europe is harder than in
beautiful: Silicon Valley. “European money is con-
developing servative,” he says. “The issue is not
ever-shrinking money — the money is actually there —
chips is crucial it is risk perception.” He blames the bag-
for Peter gage of the past. “If you look at the Euro-
Wennink’s pean history of the past 100 years, it’s
ASML been brutal.” He is hopeful the younger
generation will be less risk-averse.
As a member of the investment com-
mittee at the Dutch pension fund ABP,
which has more than €350bn under
management, Mr Wennink also sees
first-hand how hard it is for that Euro-
pean money to help cultivate a tech
scene. At ABP, “they are saying [that]
part of what we should do is invest in
start-ups,” he says. “But the next ques-
tion is, which ones? Which ones are safe?
Well, there is no safe start-up.”
At 58, and just two years into the job
as CEO, Mr Wennink is far from think-
ing about retiring, but hopes to become
more involved with start-ups once he
eventually does. “There will be a mo-
ment in time where I can probably help
other people and other companies,” he
says. “You have to give something back.
Life has been very good to me.”
With two children, a nice wine collec-
tion and an “ordinary, brown” house
close to ASML’s headquarters, it does
seem life has been good to Mr Wennink.
This does not hold him back from a brief
gripe about his salary — he does not
complain that it is too low, just that it
would be higher if he worked for an
American company.
Pat Moorhead, principal tech analyst at
Second Moor Insights, says Peter Wennink must
opinion “think about a world where there are not
10 semiconductor fabrication companies
any more, there are two.
The analyst “Does that mean ASML is better off
getting acquired by one of the two and
becoming fully vertically integrated?
Or better off being able to sell more
types of equipment, such as packaging?
. . . It shifts the environment when you
only have two customers, you almost
become beholden to them.”
CV
Born May 30, 1957, Huizen, the
Netherlands
Education Dutch Institute of Chartered
Accountants (NIVRA)
Career
1975-1998: Various roles in audit and
consulting at Deloitte, including five
years as partner in the Amsterdam office,
specialising in technology
1999-2015: Various roles at ASML,
serving as executive vice-president,
chief financial officer and on the
board of management; appointed
president and chief executive on
July 1, 2013
2003-2015: Serves on the supervisory
board of Bank Insinger de Beaufort
2014-2015: External member of the
investment committee of ABP
Interests Classic cars, collecting wine
“In Europe our pay scales and the way
we think about remuneration of man-
agement is quite different than in the
US,” he says. “There is a whole mental-
ity, we think enough is enough.” He is
paid €3m a year, including incentive-
based bonuses and stock options, while
his Silicon Valley peers make several
times that. “I say, that’s OK. I don’t need
more.”
As CEO, Mr Wennink sees his main
task as keeping everyone communicat-
ing — and his personality is suitably ex-
troverted. This goes for the engineers in
the lab, as well as for the shareholders
and the customers, who work closely
with ASML to develop new chip technol-
ogies. Several of its biggest customers
are also shareholders: Intel, Samsung
and TSMC together own more than a
fifth of ASML’s shares.
As for communication between
ASML’s engineers, who comprise more
than a third of its staff, Mr Wennink says
they sometimes have to be reminded of
the company’s broader goals. “I know it
is dangerous ground [to talk about this],
but engineers love the details, they love
the depth of what they are doing. From
time to time they forget the bigger pic-
ture,” he says. They can sometimes be
“naive” about business matters, he
adds.
Yet the long-term success of ASML
rests very much on the shoulders of the
engineers. Many in the semiconductor
industry are concerned that the pace of
progress under Moore’s Law may be
slowing down or coming to an end.
Moore’s Law, a principle first developed
by Gordon Moore in the 1960s, states
that the number of transistors squeezed
on to a chip will double every two years,
for the same cost. The principle has
guided the sector, from developers to
investors, for decades.
This evolution of ever-shrinking chips
is crucial for ASML, because each new
generation of machine being more cost-
effective and more precise than the last
is what prompts customers to buy them.
“Our competition is not so much
another company, it is Moore’s Law,” Mr
Wennink says. For each new machine,
the price tag has to be justified by the
additional efficiency savings it can gen-
erate. “[It] is a law of economics, it is all
about affordability. If we do not meet
those affordability targets, then our cus-
tomers don’t buy the tools.”
He is an advocate for Moore’s Law at a
time when many worry that the number
of transistors that can be squeezed on a
chip is starting to be limited by the laws
of physics. Even Intel has said the dou-
bling cycle is lengthening to two-and-a-
half years.
Mr Wennink believes Moore’s Law
will persist, and quotes his chief tech-
nology officer: “Moore’s Law will stop
when we run out of ideas, and we still
have a lot of ideas,” he smiles. Then he
starts drawing equations.
But later he reveals that he had the
same concern in 1999, as he wrestled
over whether to leave the security of
Deloitte. He asked ASML’s CTO how
much longer Moore’s Law would hold
true. “He told me we had another 15
years,” he says. “And 17 years later I
asked him the same question, and he
said, ‘We have another 15 years’.”
Business School terms these
employees “toxic” workers.
Researchers found that such
staff can have more of an
impact on the performance
of an organisation than
superstar workers.
Managers would be better
off spending their resources
on avoiding hiring these
problem staff, over solely
seeking out top performers,
the study’s authors say.
The research, based on
the data of more than
50,000 workers fired from 11
US companies, calculates
the annual cost savings of
not hiring a toxic worker at
$12,489, which is the
expense of replacing
workers who leave in
response to a toxic worker
on a team. This compares to
the cost savings in increased
output of hiring a top 1 per
cent performer at $5,303.
The authors of the study,
Michael Housman and Dylan
Minor, found that workers
are much more likely to be
toxic if they are highly
productive, overconfident,
self-regarding and profess
to follow the rules.
Yet it is exactly their
confidence and high
productivity rate that
initially make them appear
attractive and propel them
up the career ladder.
Prof Minor, of the Kellogg
School of Management at
Northwestern University,
says managers can reduce
the risk of recruiting a toxic
worker by considering how
they treat others.
“You are better off hiring
Feedback
The worries of many
people who fear the effects
of quitting work too early
are misplaced, wrote
Michael Skapinker last
week. Readers joined in.
Retirement is an
improvement if you’re
working a job that is
stressful, has long
hours, or where you
have no agency. If
your job is without
those bad marks,
though, the loss of
purpose is likely
worse. the big Lebowski
My hard-working uncle
retired to a small village in
Scotland. He loved his
retirement and became an
expert home repairer, it
being windy and rainy.
Tourists were always
how much they pitched in
and helped with the group.
Prof Minor also suggests
managing where people sit,
to reduce the chance of a
“ripple effect” of bad
behaviour spreading among
staff. If you suspect you
might have a toxic person
on your team, supervise
them closely and physically
place them close to
someone more senior whose
behaviour you trust. Try to
engender a non-toxic
culture by creating
incentives that reward
group behaviour.
Penny de Valk, a
managing director at human
resources firm Penna, says
that “most organisations are
full of toxic people whether
you like it or not”.
Managers have to identify
bad behaviour at all levels,
whether that is how staff
talk to others or if they cut
corners. “A toxic worker
shouldn’t be tolerated just
because they get the
numbers because the ripple
effect is huge,” says Ms de
Valk.
Her advice to managers is
that they must set the rules
of engagement and have
difficult conversations.
“Toxic workers can be
manipulative, slippery
characters so prepare well
for your conversation.” List
unacceptable behaviour and
do not let them divert the
conversation. “Your stars
can’t shine unless you cut
the drag.”
workingsmarter@ft.com
surprised he could bear to
live in such a remote spot.
“They always ask me, ‘What
do you do all day?’” The
expression on his face
indicated he had more to do
each day than at any time
when he had been working.
aegian
The retired former
colleagues who
attend farewell
parties are a
self selecting
group; those
who are dead or
incapacitated don’t
attend, so citing the
healthiness and glow of
those healthy enough
to be there is a circular
argument . . . But it is lovely
to see so many happily
retired commentators.
George Horsington
Monday 14 December 2015 ★ FINANCIAL TIMES 13

ARTS

Another step in Acosta’s long goodbye OPERA

The Firework Maker’s Daughter

DANCE
Carlos Acosta: A Classical Selection
Coliseum, London
aaaae
Louise Levene
Carlos Acosta’s long goodbye to the
ballet stage continued at the London
Coliseum last week with his Classical
Selection, a reprise of a programme first
staged at Sadler’s Wells in 2006. The
great man himself, 43 next birthday,
danced a generous five of the 12 pieces,
including a diminished but nonetheless
show-stopping reminder of his long and
lovely partnership with Marianela
Núñez in the outrageous Diana and
Actaeon pas de deux.
In any such assortment a few items
are bound to be makeweights or end up
half-nibbled in the ashtray. Most of
Tuesday’s numbers, however, were
quality material — Balanchine,
Bournonville, MacMillan — strongly
danced by Acosta and eight Royal Ballet
colleagues, and underpinned by Paul
Murphy and the English National Opera
Orchestra (who have been on cracking
form all season).
The evening began with nine dancers
arriving with kitbags and warming
up. This very serviceable conceit can
get a mite contrived — watching the
Dying Swan trudge back upstage
unhooking her tutu is always a low
point — but it does help humanise the
gala format.
The first half kicked off powerfully
with Acosta and Zenaida Yanowsky in
the combative pas de deux from George
Balanchine’s Agon followed by a mouth-
watering snippet of La Sylphide from
Valeri Hristov and Yuhui Choe. Mad-
deningly, Johan Kobborg’s flawless
2005 Royal Ballet production left the
company when he did so we will not be
seeing the whole ballet any time soon.
Would begging letters help?
Out of context, the agonised farewell
pas de deux from Winter Dreams, Ken-
neth MacMillan’s potted Three Sisters,
can look decidedly overwrought.
Tierney Heap will probably be picking
scenery from her teeth for days but it
was marvellous to see this vivid,
flavoursome young dancer let rip with
such confidence.
The weaker second half was enli-
vened by Núñez and Thiago Soares
snaking through Gustavo Mollajoli’s A
Buenos Aires. Acosta made an engaging
drunk in Ben Van Cauwenbergh’s larky
take on Jacques Brel’s Les Bourgeois, then
joined the ensemble for the action-
packed finale: Georges Garcia’s Majismo
danced to Massenet’s Le Cid.
Dancing over, they all wriggled
back into their sweatpants but the
downbeat farewell was soon sabotaged
by a standing ovation from an adoring
capacity crowd.
eno.org
of flamenco by bringing in new instru-
ments and new practices. He was partic-
ularly drawn to jazz, and it was this
aspect of his legacy that pianist Chano
Domínguez and guitarist Niño Josele
celebrated in the first half.
The duo opened with the bittersweet
fugue-like John Lewis composition
“Django”, first recorded by the Modern
Jazz Quartet, and continued with The
Beatles’ “Because” and “Je t’attendrai”
from the film Les parapluies de Cherbourg.
Here, the rococo decorations and
plaintive inflections of flamenco added
spice to melodies and sat easily on the
duo’s jazzed-up structures.
Elsewhere, jazz lines flowed and
rhythmic accents thumped over fla-
menco foundations. Mid set, each musi-
cian in turn showed off his virtuosity
and control with an unaccompanied
highlight. But it was the duo’s close
empathy and mutual support that
sustained their long first set; even a
slightly harsh-sounding grand couldn’t
hide the warmth of their music.
The second half began with two
duets, both featuring guitar, and
included the authentic Andalusian
vocals of singer Duquende and show-
cased the dignified athleticism of dancer
El Farru’s flamenco steps. Each piece
was contained within the rhythmic pat-
terns, set-piece crescendos and plangent
scales of flamenco tradition.
But de Lucía widened flamenco’s
instrumental scope while encouraging
self-expression. Here, there were two
cajón box drums, as well as fretless bass,
flute and harmonica, each adding to fla-
Show-stopping: menco’s traditional set-piece virtuosity.
Carlos Acosta JA Z Z Antonio Serrano’s nonchalantly deliv-
and Marianela ered, quick-fire arpeggios on harmonica
Núñez. Right: Paco de Lucía — drew an audience gasp, while Piraña on
Ross Ramgobin Beyond the Memory cajón and dancer El Farru rivalled the
in ‘The Firework Barbican, London rhythmic panache and tonal range of a
Maker’s aaaae great jazz drummer.
Daughter’ It was musical thrills such as
Johan Persson
Mike Hobart this that gripped even those
Alastair Muir unversed in the nuances of
When the Andalusian guitarist Paco de flamenco tradition, and the
Lucía died last year at 66, he left a band deserved their ovation. The
vibrant legacy of outward-looking encore added Domínguez and Josele
flamenco. This concert paid thorough- — though after nearly four hours,
going tribute with a fine-tuned first half people were starting to run for
jazz/flamenco duet followed by a nine- their trains.
piece ensemble of de Lucía alumni.
Paco de Lucía broadened the palette barbican.org.uk
Linbury Studio Theatre, London
aaeee
Hannah Nepil
David Bruce’s The Firework-Maker’s
Daughter taxes the best of concentration
spans. It lurches from one longueur to
the next. The pacing is Wagnerian. The
jokes soon grow stale. Yet this show, first
seen in 2013, calls itself a family opera.
The children at Thursday’s performance
sat through it in bored, deathly silence.
None of this can be blamed on the nar-
rative, in which Lila, a young girl from an
unspecified exotic clime, goes on a quest
to discover the secret behind firework-
making. Based on the 1995 novel by
Philip Pullman, it’s charming and could
have worked in a shorter, sweeter form.
In a two-hour opera, however, it is
stretched beyond snapping point.
John Fulljames’s production attempts
to obscure this behind a cocktail of pup-
petry and projection. To an extent, it
succeeds. Dick Bird’s designs — inspired
by the Indonesian shadow puppetry tra-
dition — are magical and endearing. But
between them there’s not a lot to grab on
to. Nor does Glyn Maxwell’s libretto ever
quite spark, pummelling us with lines
such as “Fireworks, oh fireworks, oh I
love my fireworks.”
So it’s left largely to the composer to
plug the gaping holes. Bruce responds by
yoking the language of Anglo-Celtic folk
to the clichés of Orientalism: pentatonic
scales, Gamelan-style percussion and
harp playing. It evaporates quickly from
the memory, but at least it’s colourful.
Under Alice Farnham, the members
of the Chroma ensemble steer clear of
complacency, as do the singers, except
in the diction department. Lauren
Fagan is a fervent, bright-voiced Lila,
with oodles of star potential. Wyn Pen-
carreg is imposing as her father, Lal-
chand. Ross Ramgobin makes a virtu-
osic fist of Rambashi, the ele-
phant-keeper-turned-pirate-
turned-chef-turned-master-
of-ceremonies. And in his role
as Hamlet, the King’s white ele-
phant, countertenor Tai Oney
struggles against all odds to
convince us that wordless, tune-
less meandering can supplant
dramatic thrust.
To January 2, roh.org.uk

Where uncertainty comes up against entropy

Sharp: Lisa
THEATRE Dillon in
‘Hapgood’
Hapgood Alastair Muir
Hampstead Theatre, London
aaaee
Sarah Hemming

For a tricky equation in quantum phys-

ics, the uncertainty principle is quite the
stage star. It plays a crucial role in
Michael Frayn’s Copenhagen and it is
deeply embedded in Tom Stoppard’s
1988 spy thriller. Pitched at the end of
the cold war, Hapgood is all about dou-
bles and duality: double agents, double
dealing, double lives, doubling on stage.
No one is quite who they seem and the
uncertainty principle is in on the act,
smuggling itself into what is, to some
extent, a covert operation by Stoppard:
a play that is just as much about science
as it is about spying and in real sub-
stance about neither.
It’s intriguing, enjoyable, yet some-
how lacking in energy. And there’s
an obstacle in that while the play’s
very structure demonstrates its
central concern — the difficulty of
self-knowledge and the corrosive
nature of loss of trust — it also keeps the
characters quite distant.
Spymaster Elizabeth Hapgood has a
mole in her network, but who is it? Sus-
picion rolls around the plot, lighting first
on one suspect then another — including
Hapgood herself. The presence of
several sets of twins creates confusion —
with Stoppard relishing the art of theat-
rical doubling to fox the audience fur-
ther — and every apparent answer rap-
idly retreats. Hapgood’s Russian double
agent, Kerner, a physicist, draws paral-
lels with his science, suggesting that
your very presence as an observer alters
a picture and that people, like electrons,
are impossible to define fully.
It’s witty, clever and fun, in that bam-
boozling way of a spy story, and Howard
Davies’s revival revels in the game-
playing element. Ashley Martin-Davis’s
set, with its flickering surveillance
screens and walls of multiple doors,
sets up the opening scene (a mind-
bogglingly complex “drop” in a
swimming pool changing room,
entertainingly choreographed) while
evoking those door-based logic puzzles.
There’s also the suggestion that for the
spies, too, this whole business has
become a rather jaded game and the fine
cast pitch this well. Tim McMullan is
outstanding as the wry, inscrutable old-
school spook; Gerald Kyd and Alec New-
man are splendidly enigmatic as the
thuggish Ridley and mischievous
Kerner respectively; and Lisa Dillon is
droll, sharp and subtle as the brilliant
but lonely Hapgood. She and the price
she is paying are the heart of the story.
But while Stoppard expertly ensures
that the audience, like the characters,
trust no one, that also means we never
get close to her dilemma. Appropriate —
but, in dramatic terms, a bit frustrating.
To January 23, hampsteadtheatre.co.uk

DANCE
Urban Bush Women
Brooklyn Academy of Music, New York
aaeee
Apollinaire Scherr
You wouldn’t know from the Urban Bush
Women’s Walking with ’Trane that John
Coltranepractisedrelentlesslytoachieve
his pure, sharp tone, or that his jazz
wasn’t funky like Miles Davis, silky and
suave like Lester Young or impish and
hip like Charlie Parker, but soared like a
huge alien bird. Instead, you would take
thiscomposercapableofBach-likearchi-
tectonics and late-Beethoven density for
amumbly,solipsistictootler.
Walking with ’Trane starts by laying out
its dubious theory of artistic creation.
Music emerges from a sonic void
(composer Philip White’s mounting wall
of sound). First, though, the artist must
“locate his spine”, as dancers like to say
about grounding themselves. The regal
Chanon Judson appeared from the shad-
ows to roll her neck and shoulders and
sway her hips exploratorily. She was
captivating. Then, one at a time, six
more troupers arrived for ever twitchier
variations on conjuring art from self-
consideration. It was excruciating.
Jawole Willa Jo Zollar, the troupe’s
Fruitless: ‘Walking with ’Trane’
principal choreographer since founding
it 30 years ago, has never been much for
structure nor for pursuing a language of
her own. But previous dances showed a
keen eye for social injustice and cultural
mannerism, an urgency in speaking out,
and a delight in being heard. With Walk-
ing, Zollar and co-choreographer
Samantha Speis have left the social
for the mental — the mind of creation
— where they wander fruitlessly,
Coltrane’s rigorous process nowhere
in sight.
At least after intermission we got to
hear A Love Supreme, in the form of
George Cardwell’s live piano redaction.
It drove the choreographers to the occa-
sional visual harmony. But only Wendall
Harrington’s painterly slide projections,
especially the chalky yellow stripes
receding like train tracks and the loom-
ing blue banners that resembled stops
on a saxophone or blue notes on a staff,
had Coltrane sufficiently — lovingly and
imaginatively — in mind.
bam.org
14 ★ Monday 14 December 2015

Explore more sports

data analysis and
visualisation in our series
at ft.com/baseline

Fury over
boxer smacks The Baseline
of hypocrisy Football managers: bench-life shortens
Whether Swansea’s dismissal of Garry Monk was right or wrong
remains to be seen, but one thing is certain: bosses in England
get less time than they used to
So here’s the recipe: take the
Median years
organisations — WBC, WBA, WBO, IBF, in charge
NBG, whatever — that compete to run
world boxing and form a sink of Tier 1 7
maladministration in which Sepp
Blatter might look like Abe Lincoln. Add Tier 2
the BBC’s Sports Personality of the Year
award (SPOTY), an event that gets more Tier 3 6
overblown each year, even as the
corporation pretty much ceases to cover Tier 4
any actual sport.
Take one unstable mass, the British 5
public, in its current state of
pre-Christmas hysteria that is
unmatched in the known world. Then
take another unstable mass: Britain’s 4
own Tyson Fury (“the Gypsy King”), all
6ft 9ins and 246lbs of him, newly
crowned as, by boxing standards, the 3
not all that much disputed heavyweight
champion of the world. Hard-hitter: Tyson Fury, left, defeats Ukraine’s Wladimir Klitschko in a heavyweight match last month — Sebastian Konopka/AP
This took the country by surprise.
The British bourgeoisie lost interest in 2
boxers decades ago, and failed to there are moments when you should Trump. But Fury is not running for
register the rise of this one, despite him stop yapping. So he kept going on. The president.
being named after one of the two or heptathlete Jessica Ennis-Hill, also on His ideas don’t have to make sense; he
three living heavyweights of whom they the shortlist? “She slaps up good. When just has to hit people. He never asked to 1
had actually heard. He took the Fancy she’s got a dress on, she looks quite fit.” be considered for SPOTY, an
by surprise too: few experts gave him Women in general? “A woman’s best increasingly degraded award now that
any chance before he outpointed ageing place is in the kitchen and on her back — voting has moved online; last year the
Ukrainian Wladimir Klitschko two that’s my personal belief.” His critics? dozy old golfers were swamped by the 0
weeks ago. “They can suck my balls.” The people tech-savvy petrolheads, and Lewis 1960 1970 1980 1990 2000 2010
The win itself was uncontroversial, who have signed an online petition Hamilton beat the obvious objective FT graphic Source: FT research
and since Fury has a personality all calling him to be banned from SPOTY? choice, Rory McIlroy.
right, it might have been brilliantly “50,000 wankers.” This comment is now Maybe Hamilton, world champion
timed for the annual BBC fiesta next out of date. That petition now has again, will win this again too, perhaps in JOHN BURN-MURDOCH The obvious outlier is Arsène
weekend: he was hastily added to the 134,000 signatures. Two rival pro-Fury perpetuity. (Now TV sports coverage is Wenger, who has been at the reins of
shortlist. Unfortunately, his personality ones have less than 800 between them. segmented and ghettoised, fewer people Last week Garry Monk became the Arsenal for more than 19 years, and is
is not one the British find agreeable. So has the silent majority spoken? I relish a range of sports.) seventh Premier League manager the reason we use the median rather
Unlike most athletes, boxers are wonder. My impression of Fury is that Or, just maybe, Fury has Trumpishly dismissed in 2015, and the 11th than mean to measure tenure.
encouraged to speak out, act up and do he is no villain, however much he may touched on the unspoken thoughts of a departure including resignations and But a few decades ago such lengthy
just about anything to bump up the serve as one for pantomime purposes: great many Britons. What’s interesting mutual terminations in the period. stints were more common: at the end
takings. It worked brilliantly for that he seems insecure, at once flattered by about him is that he is unspun: he says Monk had been in the job for just of 1967 Matt Busby had been man-
master of mouthing, Muhammad Ali. the attention and blinking in the what comes into his head. This in a under two years, and while you could ager of Manchester United for almost
We live in different times, and Fury is a unfamiliar limelight. Rooted in the sporting landscape where interviewers be forgiven for thinking this is pre- 23 years, Ted Bates had been in
less skilled operative. His big pre-fight unchanging certainties of Irish traveller normally ask only “How special was cious little time, it actually comes in charge at Southampton for 12 years,
interview appeared in the Mail on culture, and imbued with half-cocked THAT?” and their subjects offer only at almost twice the median across all and a total of 16 managers had
Sunday under the heading: “Vile religious beliefs, all marinated in the banal, tutored responses like hostages Premier League managers in 2015. amassed reigns of more than four
homophobic slurs, ranting about devil unchangingly macho world of boxing, at gunpoint. By this measure, a typical manager years in a top-flight job.
worshippers and Armageddon . . . Is he has no idea what to say to I don’t care for or about Fury’s who was in charge of a top-flight club Forty-eight years on, the only duo
this man fit to fight for the world mainstream Britain. opinions. I am, however, a hysteria- at any time in 2015 spent one year with top-tier stints of four years or
heavyweight title?” Well, not fit for This is a country where it has never phobe and a hypocrisy-phobe, and I plus a handful of days in his post (for more are Wenger and Sam Allardyce,
SPOTY, public opinion has decided. mattered what you do, as long as you say sense a great deal of both in the those still in position, days in charge the latter of whom spent almost

Matthew Engel
Fury does not come over as a nothing that offends the societal norms campaign against him. refer to time between appointment exactly that long at West Ham before
well-educated man. At the very least he of the moment. If he were to win, would the BBC even and date at the time of writing). his departure in May 2015.
never learned that, even for boxers, He is being compared to Donald dare to announce it?

Today’s temperatures
1020 Abu Dhabi Sun 28 Malta Fair 18
0 1020
Amsterdam Cloudy 7 Manila Cloudy 30
HIGH Ankara Fair 6 Miami Cloudy 29
0 Athens Sun 16 Milan Fog 8
-2 0 Bahrain Fair 24 Montreal Rain 7
14 Barcelona Sun 16 Moscow Cloudy 0
L LOW Beijing Fair 6 Mumbai Sun 32
Belfast Cloudy 10 Munich Fair 6
10 Belgrade Fog 4 Naples Sun 14
1010
3 2 Berlin Cloudy 4 New York Rain 17
LOW 7 4 Brussels Sun 8 Nice Cloudy 15
10 34
Budapest Cloudy 4 Nicosia Sun 20
1000 Cairo Fair 20 Oslo Fair 0
8
Cardiff Rain 10 Paris Cloudy 8
8 4 Chicago Rain 12 Prague Cloudy 3
1010 4 Cologne Fair 9 Reykjavik Snow 4
8
Copenhagen Rain 6 Riga Cloudy 3
H GH 4 Delhi Sun 21 Rio Fair 34
5 Dubai Sun 27 Rome Fair 15
13 HIGH Dublin Rain 10 San Francisco Sun 13
Edinburgh Rain 6 Singapore Shower 31
14 4 Frankfurt Fair 7 Stockholm Fair -1
18 Geneva Fair 9 Strasbourg Fair 8
20
Hamburg Drizzle 5 Sydney Sun 28
Helsinki Fair 0 Tokyo Cloudy 13
18 1020
Hong Kong Fair 22 Toronto Shower 14
Istanbul Sun 12 Vancouver Cloudy 8
1
Lisbon Shower 18 Vienna Cloudy 5
Wind speeds in PH 19
London Cloudy 10 Warsaw Cloudy 3
Forecasts by Los Angeles Sun 17 Washington Rain 20
Wind speed Luxembourg Cloudy 7 Zagreb Fog 4
in KPH Madrid Cloudy 14 Zurich Cloudy 4

ACROSS 3 Irish revolutionary from

MONDAY PRIZE CROSSWORD 1 Number in china tea set, outskirts of Swords? (5)
No. 15,113 Set by FALCON cracked? (11) 4, 5 Stole hostelry’s unusual
7 Dwarf in novel: Frankenstein piece of mobile furniture (7,7)
       
(3) 6 CD broken by old woman in
9 Boy and girl about to (5) habit? Odd riddle (9)
10 Loner, “Scud”, rotten blighter 7 I grew agitated holding a small
  (9) insect (6)
11 Bitter, reportedly make off 8 Fine to change flag (6)
with knives, etc (4,5) 14 Classified in “Post”, etc.,
  12 Hooter I installed makes din circulated round about (3-6)
(5) 16 Man with groom redesigned
13 Representative put in new motif (8)
   suite as motivation (7) 17 Key volunteers once elected to
15 Long tale’s thread (4) carry on (8)
 
18 Ring up over second musical 19, 20, 21 My guardian angel’s
   work (4) song? (7,2,5,4,2)
20 Also enthralling doctor, LA 22 Yellow head of colourful bird
  lottery (7) (6)
  
23 Some of Hasenclever’s 25 Object reserved, not English
expressionist poetry (5) (5)
24 Curious about western
women shot outside, killed SOLUTION 15,101
 
indiscriminately in large 6 ( 7 7 ( 5 6 7 $ 5 . ( 5 6
numbers (5,4) $ $ 3 5 $ 6 (
1 $ , / ( ' 0 $ * 1 ( 7 , &
26 Brave trio adrift in craft (9) ' / ( 6 & . + 2
  27 Start of melodious song, song : , 3 ( 6 ( 9 ( 1 6 ( ( 1
, , 0 & ( ( 5 '
from West Side Story (5) & 8 3 % 2 $ 5 ' / 2 9 (
A prize of The Good Word Guide by Martin Manser and How to 28 Long period in east, working + ( & ( ( ( 6 0
Sound Clever by Hubert van den Bergh will be awarded for the (3) 3 + 2 7 2 0 2 1 7 $ * (
+ % $ 3 ( 7 1 /
first correct solution opened. Solutions by Tuesday December 29 Article on fielder in film (3,5,3) $ 5 8 0 % 2 8 1 ' : , 1 2
22, marked Monday Prize Crossword 15,113 on the envelope, to DOWN 0 7 6 / 7 = 7 '
/ 2 7 + $ 5 , 2 9 ( 1 , & (
the Financial Times, 1 Southwark Bridge, London SE1 9HL. Solu- 1 Not regulated by law in China, ( ( * & 5 6 2
tion on Monday January 4. car put together wrongly (8) 7 + 5 ( $ 7 ( 1 . 2 5 ( $ 1
..................................................................................................................................... 2 Social worker, eastern
............................................................................................................................................ European, turned up for The winner’s name will be published
animal (8) in Weekend FT on January 2.
Monday 14 December 2015 ★ 15

Special delivery Why Amazon’s Break clause China’s middle classes

profits are surging — JONATHAN FORD, PAGE 16 insure against disaster — ANALYSIS, PAGE 17

Lenders entangled in Fifa investigation Rolls-Royce

crisis triggers
3 Prosecutors eye charges over failure to report suspicious activity 3 JPMorgan, Citi and UBS among those in talks
plan to protect
GINA CHON — WASHINGTON America, Citigroup, Credit Suisse, world. For Credit Suisse and UBS in of legislation, which allowed UBS to US requests for legal assistance, and it
UK interests
LAURA NOONAN — NEW YORK
HSBC, Standard Chartered and UBS are Switzerland, US prosecutors are also transfer thousands of names of Ameri- has also ordered the handover of corre-
US prosecutors are threatening to pun- among the banks that are holding pri- seeking ways to obtain information can clients suspected of evading taxes sponding documents in five final, par-
ish banks for failing to report suspicious vate discussions with prosecutors about Fifa and related entities without to the US authorities. tial rulings, according to the Swiss PEGGY HOLLINGER — LONDON
activity on Fifa-related accounts as part about what they knew and when as part having to deal with the restrictions of That Swiss vote came after a special Department of Justice and Police.
Nationalising Rolls-Royce’s nuclear
of the corruption probe into world foot- of the Fifa probe, people familiar with the Swiss bank secrecy laws, people treaty was devised between Swiss and A total of 41 individuals and entities
submarine business, which powers the
ball’s governing body, people familiar the matter said. familiar with the case said. US authorities. As part of that deal, have been charged so far in the investi-
Royal Navy fleet, is one option under
with the case told the Financial Times. All of the banks held accounts for Fifa An agreement with the Swiss govern- Bern promised to pass along the names gation into Fifa.
consideration by the government
The charges could have serious or entities and individuals connected to ment could give them more unfettered of some 4,450 wealthy American UBS People familiar with the case said it is
should the crisis at Britain’s premier
implications if prosecutors proceed. In world football’s governing body, or access to information in Fifa-related clients suspected of having undeclared too early to say whether the banks will
engineering group deepen.
2014, JPMorgan Chase paid a $2bn fine were used as part of money transfers, bank accounts, rather than the current accounts at the bank. face a penalty and the companies are
for failing to file such reports in relation with some of them totalling in the mil- system of having to make individual So far in the Fifa probe, the Swiss Fed- working to address the questions raised David Cameron’s office has had plans
to the Bernard Madoff Ponzi scheme. lions of dollars, according to a May requests for data. They have pointed to eral Office of Justice has frozen some by prosecutors. Most of the banks drawn up to protect UK interests as
JPMorgan, along with Bank of indictment that shocked the football the Swiss parliament’s approval in 2010 Swiss bank accounts in response to four declined to comment. Rolls-Royce seeks to recover from five
profit warnings in less than two years.
Other scenarios include a merger of all
or part of Rolls-Royce with BAE Sys-
tems, the UK’s biggest defence group.

Thousands more bank jobs under threat in fresh round of lay-offs The inquiry comes as nervousness
grows over whether Rolls-Royce could
fall victim to a hostile foreign bid before
its new chief executive, Warren East, is
able to stabilise trading and restore
LAURA NOONAN — NEW YORK Job cuts announced in the banking sector investor confidence. Officials are con-
MARTIN ARNOLD — LONDON
cerned that Rolls-Royce’s management
Big banks in Europe and the US has no substantial experience of defend-
announced almost 100,000 new job ing against hostile takeovers, according
cuts this year, and thousands more are to sources familiar with the plans.
expected from BNP Paribas and Bar- The government is also concerned
clays early next year, as the wave of lay- about whether the crisis might distract
offs that began in 2007 shows no sign of attention from the £31bn project to
abating. renew the Trident nuclear deterrent
programme. It has protection against a
The 2015 cuts, which exclude the potential hostile bid through a golden
impact of major asset sales, amount to HSBC StanChart RBS UniCredit Deutsche Rabobank Credit SocGen Crédit Morgan Novo share, which bars Rolls-Royce from sell-
more than 10 per cent of the total work- Total employees* (’000) Bank Suisse** Agricole Stanley Banco ing 25 per cent or more of its net assets
force across the 11 large European and or of the nuclear division without its
US banks that announced fresh lay-offs, 241 90 108.7 35.7 89.1 48.3 45.8 148 72.6 55.8 7.7 consent. There are also other safe-
analysis by the Financial Times showed. guards, including a ceiling of 15 per cent
The most recent came last week, as on foreign ownership.
workers at Dutch lender Rabobank However, a bid approach could
learned of 9,000 cuts across their bank present an opportunity to improve the
the day after Morgan Stanley company’s performance, and benefit
announced 1,200 lay-offs, including at shareholders, ministry of defence ana-
its ailing fixed income division. lysts say. In this scenario, investors
Barclays and BNP Paribas, two of could put pressure on the government
Europe’s biggest banks, will unveil job
cuts when they announce strategies that
25 15 14 12.2 9 9 5.1 3.5 1.4 1.2 1 to waive its veto at least for the group’s
civil aerospace business, which is the
Job cuts announced in 2015 (’000)
are designed to strip out 10-20 per cent *Totals exclude job losses through group disposals. End-2014 staff numbers are on a full-time equivalent (FTE) basis where available, figures for Société Générale,
world’s second-largest maker of aero-
of the costs at their investment banks, JPMorgan, Novo Banco and Morgan Stanley are not described by the banks as FTE. Standard Chartered’s end-2014 staff numbers are approximate. engines. Pratt & Whitney of the US and
people familiar with the situations said. **Credit Suisse's job cuts include ‘1,500 to 2,000’ UK jobs, our analysis takes the lower number. Siemens of Germany have been mooted
Barclays’ axe will fall on March 1 when FT graphic Sources: company announcements; FT research
as potential bidders.
chief executive Jes Staley reveals a fresh Philip Dunne, defence procurement
strategy with the bank’s annual results. minister, did not confirm the existence
The announcement will include Bar- February. The French bank has already among clients. Those banks under new they have to earn higher profits to keep a driver of further headcount reduc- of the emergency plan for Rolls in an
clays’ plans to move more quickly to said it is planning to cut more than 1,000 leadership — such as Deutsche Bank, return on equity (RoE) at the levels tion longer term, with retail banks interview with the Financial Times last
shrink its investment bank, which jobs in its Belgian retail network. Credit Suisse and Barclays — have been investors demand. “I don’t think we can cutting branches in favour of online week. However, he said the UK govern-
employs about 20,000 people. Barclays Banks have found that they have been under particular scrutiny. rule out the end of job cuts until RoEs services and investment banks cut- ment was “concerned that Rolls-Royce
declined to comment. carrying too many staff, as they suffer Analysts believe 2016’s misery could recover to acceptable levels,” said Jon ting back offices in favour of online performs and is capable of performing
BNP Paribas’ new corporate and insti- falls in revenues from a combination of be more widespread than just those two Peace, London-based banks analyst at technologies such as blockchain,” Mr its nuclear obligations. We would defi-
tutional banking chief Yann Gérardin tougher post-crisis regulation, ultra-low banks. New regulations mean all banks Nomura. Peace said. nitely take a view in the event there was
will announce a new cost-cutting plan in interest rates and sluggish activity must hold more equity, and that means “Digital transformation could also be Cull continues page 16 corporate activity”, he said.

Fosun seeks to quell investor fears as

chairman is questioned by Beijing
PATTI WALDMEIR — SHANGHAI but it is not because the company has they were in touch with the chairman
TOM MITCHELL — BEIJING
problems”. directly or were communicating with
Fosun Group, the Chinese conglomer- “It is the duty of any citizen to assist a him through intermediaries.
ate, is not the focus of an investigation government investigation,” he added. Fosun executives sought to reassure
that has ensnared its chairman, the “This is a routine process in China.” investors about the company’s financial
company said yesterday, in an attempt Wang Qunbin, the group’s president, position and creditor support, saying
to reassure nervous investors. stressed that Mr Guo was assisting in his that the group had cash and liquid assets
Anglo American digs in individual capacity. “So far the investi- of more than Rmb67bn ($10.4bn), while
for South African battle Fosun, the aggressively acquisitive com- gation is focusing more on the individ- its net debt ratio had been reduced by
pany that owns Club Med, spoke to ual.” The company gave no details about 9.8 percentage points to 53.5 per cent
Troubled miner Anglo American is investors and the media after its chair- the nature of the investigation that Mr over the past year.
preparing for a battle over its man Guo Guangchang, known as China’s Guo was assisting. “Please do under- “Fosun is not run by one person but
restructuring plans in South Africa as it Warren Buffett, had been out of sight for stand that this is quite a sensitive event managed by a group of executives,” Mr
considers whether to dispose of its nearly four days, provoking anxiety in and our knowledge about the investiga- Wang said, noting that he and other
stake in the country’s largest iron ore the country’s private sector. tion is limited,” Mr Wang added. senior executives had worked together
miner, Kumba Iron Ore, amid the global Mr Guo is not accused of any wrong- While reiterating Fosun’s statement for almost 25 years. “The banks have a
commodities rout. doing. Liang Xinjun, Fosun chief execu- on Friday that they were able to consult good understanding about the events
Report i PAGE 18 tive, said Mr Guo was “assisting the judi- Mr Guo “via appropriate means”, Mr and they will continue to support us.”
cial authorities with an investigation Liang and Mr Wang declined to say if Talent flight fears page 18

Companies / Sectors / People

Companies
AIA....................................................................17
AOL..................................................................12
ASML..............................................................12
Airbus...............................................................2
Alibaba.......................................................8,18
Allergan...........................................................8
Amazon.........................................................16
Amundi................................................FTfm6
Anbang Insurance...................................17
Anglo American.......................................18
Apple..............................................................22
Audi.................................................................16
Aviva...............................................................17
Aviva Investors...............................FTfm6
Axa.....................................................17,FTfm1
BAE Systems..............................................15
BNP Paribas................................................15
BTG Pactual......................................FTfm6
Bain Capital................................................18
Bank of..........................................................15
Barclays....................................................15,16
BlackBerry...................................................22
BlackRock.........................................FTfm10
Blackstone..........................................FTfm2
British Airways...........................................11
CBRE...............................................................16
Calpers.................................................FTfm2
Carmignac..........................................FTfm6
Carnival.........................................................22
China Life.....................................................17
China Taiping Insurance.....................17
Citic.............................................................17,18
Citigroup.......................................................15
Clean Energy Capita....................FTfm2
Club Med......................................................15
Cofco...............................................................17
Credit Suisse.........................................15,16
Deutsche Bank..........................................16
Dixons Carphone....................................22
Dow Chemical.............................................8
DuPont.............................................................8
Facebook...................................................6,18
FedEx.............................................................22
Fenway Partners............................FTfm2
Fifa....................................................................15
Fosun Group.........................................15,18
Franklin Templeton....................FTfm10
Goldman Sachs.........................FTfm8,10
Gome...............................................................18
Google.....................................................6,8,18
Gottex................................................FTfm20
HSBC..........................................................15,16
Hermes Investment......................FTfm3
ICBC.................................................................17
Imagination Technologies.................22
Intel..................................................................12
Invesco Perpetual.........................FTfm6
JPMorgan.....................................................15
KKR.....................................................FTfm2,3
Klabin....................................................FTfm6
Kumba Iron Ore.......................................18
Legg Mason....................................FTfm10
Lincolnshire Management........FTfm2
Morgan Stanley .......................................15
NXP Semiconductors............................12
Nordea Asset Management.....FTfm1
Paxvax...........................................................10
Petrobras.........................................FTfm1,6
Pfizer.................................................................8
Philips.............................................................12
Pimco.................................................FTfm20
Ping An..........................................................17
Pratt & Whitney.......................................15
Rabobank................................................15,16
Rolls-Royce..................................................15
Samsung.......................................................12
Sibanye Gold..............................................18
Siemens.........................................................15
Standard Chartered..........................15,16
Standard Life.............................................17
State Farm...................................................17
State Street.....................................FTfm10
Suzano Papel...................................FTfm6
TNT Express..............................................22
TSMC..............................................................12
Third Avenue................................FTfm20
Tianping........................................................17
Towers Watson...............................FTfm3
Twitter........................................................6,18
UBS..................................................................15
UniCredit.......................................................16
United Parcel Service...........................22
Vanguard...................................FTfm10,20
Volkswagen.................................................16
Yahoo................................................................8
YouTube..........................................................6
Sectors
Aerospace & Defence...........................15
Automobiles................................................16
Banks....................................9,15,16,17,FTfm
Financial Services...............................17,18
Financials....................................17,18,FTfm
Food & Beverage.....................................17
Industrials...............................................15,18
Insurance......................................................17
Media...........................................................6,18
Mining............................................................18
Property...................................................16,17
Retail.........................................................16,22
Support Services.....................................22
Technology.................................12,16,18,22
Telecoms......................................................22
Travel & Leisure................................18,22
People
Ahrendts, Angela.....................................12
Armstrong, Tim........................................12
Bezos, Jeff...................................................16
Costolo, Dick...............................................12
Cutifani, Mark............................................18
Dieter Pötsch, Hans...............................16
Dimon, Jamie..............................................12
Duverne, Denis..........................................17
East, Warren...............................................15
Esteves, André................................FTfm6
Gérardin, Yann...........................................15
Guo, Guangchang..............................15,18
Huang, Guangyu......................................18
Kelley, Ken...................................................10
Liang, Xinjun..............................................15
Ma, Jack........................................................18
Meng, Zhaoyi.............................................17
Schmidt, Eric................................................8
Staley, Jes...............................................15,16
Sulentic, Bob..............................................16
Wang, Qunbin............................................15
Wennink, Peter..........................................12
Yan, Jiehe.....................................................18

© The Financial Times Limited 2015 Week 51

16 ★ FINANCIAL TIMES Monday 14 December 2015

COMPANIES
INSIDE BUSINESS
Automobiles
ON MONDAY

Berlin to demand car software access Jonathan

Move is part of regulatory
measures being drawn up
by inquiry into VW affair
JEEVAN VASAGAR — BERLIN
Carmakers seeking approval of new
vehicles in Germany will be required to
give the country’s regulators access to
Germany also plans to conduct fol-
low-up tests of car emissions levels on
government-run engine test stands.
Under the present system, testing is car-
ried out by independent companies.
The German regulator can carry out
follow-up checks but commissions inde-
pendent testing services to perform
these.
In the US, follow-up tests are con-
Ford
scandal. The KBA, Germany’s federal Germany’s Audi, VW’s luxury car brand, admit-
motor transport authority, issues ted in November that engines in a fur-
transport
certifications for new VW brand
models that apply across the European
Union.
ministry
ther 85,000 cars contained an illegal
defeat device.
The German carmaker’s chairman
Profits may be up, but
Carmakers have traditionally been
reluctant to allow outsiders access to
also plans
follow-up
Hans Dieter Pötsch last week confessed
to a “chain of errors” that led to the
Amazon must stick to
proprietary engine software, fearing
that competitors may learn details of
emissions reduction techniques.
tests of car
emissions scandal.
The company blamed a combination
of individual misconduct, weak
a jam-tomorrow policy
emission

their software, under measures being
prepared by the German government in
response to the Volkswagen emissions
scandal.
German transport minister Alexan-
der Dobrindt announced yesterday that
forcing companies to reveal their car
software would be part of a “compre-
hensive package of measures” to be
introduced after Volkswagen admitted
installing an illegal defeat device ena-
bling it to cheat emissions tests.
ducted by the Environmental Protec- However, a proposal that gives regula-
tion Agency. In September, the EPA tors confidential access to engine soft-
accused VW of installing software that ware is unlikely to encounter industry
switched on emissions control devices opposition.
for tests. VW admitted in September that it had
The German minister’s announce- installed software-based defeat devices
ment reveals the first details of new reg- capable of cheating regulators on up to
ulatory measures being drawn up by 11m diesel vehicles worldwide, in a
Germany’s official inquiry into the VW scandal that could cost the company
affair. tens of billions of euros in fines, lawsuits
It is likely to set the tone for how and other expenses, according to ana-
European regulators deal with the lysts’ estimates.
Sector woes. Job cuts
F
processes and tolerance of the breach-
levels on ing of rules.
state-run VW said it planned to strengthen the
internal oversight of engine control soft-
engine test ware, adopting a “four eyes” principle,
stands which means at least two people must
approve key decisions.
VW acknowledged last week that the
scandal dated back to a 2005 decision to
promote diesel vehicles in the US, where
it could not meet strict emissions stand-
ards.
or a business that is known less for making
money than for relentlessly expanding its activi-
ties, Amazon has suddenly started doing some-
thing rather out of character. The internet
retailer is posting profits. In the past two quar-
ters, it has unexpectedly gone into the black, propelled
there by spectacular growth at its cloud computing busi-
ness, Amazon Web Services. The unit, which provides
technology infrastructure to Amazon and third-party cus-
tomers, is on a serious tear. It is not only expanding incred-
ibly quickly (revenues are rising by 70 per cent a year);
profits have also started to pile up at a prodigious rate.
In the latest quarter, these came to $521m on revenues of
$2bn. That is roughly equivalent to the operating income
of the entire core North American retail unit — a business
with eight times the sales. The growth of web services is not
just transforming Amazon’s once threadbare profit and
loss account. It is also shifting perceptions of the company

Big banks feel the pain as brutal cull continues
Decline likened to that of
telecoms and car industries as
regulatory shake-up takes toll
LAURA NOONAN — NEW YORK
MARTIN ARNOLD — LONDON
After a brutal seven years, bankers still
in their seats at the end of 2014 might
well have thought the worst was over.
Not so for almost 100,000 of them at the
biggest banks.
Analysis by the Financial Times shows
that job cuts continued at a ferocious
pace this year, with 11 of the biggest
European and US banks announcing
almost 100,000 new cuts in a year when
global economic growth rallied and
many banksposted improved earnings.
And it is not over yet. “There is still a
long way to go in this,” said Brian Led-
better, head of McKinsey’s UK financial
services team. He likened the banking
sector’s decline to that endured by the
telecoms and car industries, where he
said companies ultimately eliminated
40 per cent of their cost bases.
The cuts announced in 2015
amounted to just over 10 per cent of the
11 banks’ workforces at the start of the
year, after stripping out the impact of
large business units sold or earmarked
for sale. European banks dominated.
“European banks are in catch-up
“A lot of these jobs are just
going away — they will
either be done by
machines or not at all”
Mike Mayo, CLSA
mode,” said Mike Mayo, a New York-
based banking analyst at CLSA — US
banks made heavier cuts sooner, after
the 2008 collapse of Lehman Brothers
plunged the world’s financial sector into
crisis. The “multitude of CEO changes
among European banks” was a “cata-
lyst” for the European cuts, since “you
don’t bring in a new CEO for business as
usual”.
Deutsche Bank, Credit Suisse, Stand-
ard Chartered and Barclays all
announced new chief executives in
2015. The first three together accounted
for almost 30,000 of the cuts. Barclays
imposed a hiring freeze in September
and is part way through a plan
announced last year to cut 19,000 jobs
across the group, including 7,000 in its
investment bank. New chief executive
The One Canada Jes Staley is expected to announce faster
Square building investment bank cuts on March 1.
at Canary Mr Mayo said the three Rs — “reve-
Wharf, London. nue, rates and regulation” — would be
The jobs axe the main drivers of future cuts. New reg-
swung this year, ulations mean all banks must hold more
with 11 of the equity, and that means they have to earn
top European higher profits to keep return on equity
and US banks (RoE) at the levels investors demand.
announcing Mr Ledbetter said banks were being
almost 100,000 forced to cut jobs because of the obsta-
new cuts cles to carrying out mergers — which
Simon Dawson/Bloomberg
could improve their productivity and
help them cope with sluggish economic
growth, as well as the low revenue that
results from ultra low interest rates.
“A lot of these jobs are just going away
— they will either be done by machines
or not at all,” he added.
Hakan Enver, London-based opera-
tions director of financial services at
recruitment group Morgan McKinley,
said regulation was behind many of the
cuts announced this year. The impact of
new regulations was a key reason for the
12,200 job cuts announced by UniCredit
and the 9,000 by Rabobank. Both banks
have faced questions over their ability
to maintain high enough core equity
ratios as new regulations have imposed
ever-tougher requirements.
The cuts at retail banks, as well as at
investment banks are part of a plan to
reduce costs, boost profits and shrink
the banks, which should all lead to
higher capital ratios.
The flip side of the regulations deluge?
In some cases, such as HSBC, the cuts
will be offset by hiring in other areas,
and overall headcount figures are
expected to be flat. “The regulatory-
driven disciplines are still very busy [for
recruitment], such as compliance, audit
and risk,” said Mr Enver. “We’ve also
seen huge requirements around tech-
nology, particularly big data, and
around cyber security.”
That is little comfort for the bankers
who join the almost 400,000 American
finance and insurance workers who lost
their jobs between 2007 and 2012, or the
80,000 staff cut by Europe’s top 30
banks between 2008 and 2014.
“It’s very difficult for Morgan Stanley
to have lay-offs right before the holi-
days,” said Mr Mayo. It has cut 1,200
people from its fixed-income unit and
back office support for that business,
following the bank’s worst quarter for
bond trading since the financial crisis.
and its worth. Encouraged by the vision of a more “nor-
mal” Amazon, one posting regular positive earnings, ana-
lysts have rushed out notes hailing the transformation and
setting elevated price targets for the stock. The logic is that
a more consistently profitable company should attract a
new segment of investors, one that has until now been
resistant to its charms.
It is not clear yet whether Amazon has really changed. It
may be that the company has simply been surprised by the
explosive growth at AWS. But whatever the situation, the
group should think very hard before following any script
written for it by Wall Street’s scribes. Most listed compa-
nies strive to offer jam today for their shareholders. Ama-
zon, by contrast, is a firm believer in the idea that jam is
better consumed tomorrow. The result has been a com-
pany known for its doctrine of largely profitless growth. It
is why, at the operating level, Amazon earned just $178m
before interest on sales of $89bn in 2014, equivalent to a
margin of two-fifths of 1 per cent. In two out of the past
three financial years, the group has made a net loss.
This, it should be stressed,
is a conscious choice. Under
founder and boss Jeff Bezos,
The group should
Amazon has sometimes think hard before
elected to post profits, gener-
ally at moments of stress
following any
when investors needed reas- script written for
surance, such as the dotcom
bust or the financial crisis.
it by Wall Street
But for the most part, his
approach has been to invest almost every penny back into
the business, whether in launching new product lines, or in
the customer-pleasing practice of keeping its prices low.
Mr Bezos’s philosophy can be summarised in an obser-
vation he made several years ago. “Proactively delighting
customers earns trust, which earns more business from
those customers, even in new business areas,” he said.
“Take a long-term view and the interests of customers and
shareholders align.”
This may be boring for stock-peddling analysts, on the
lookout for a quick trading idea, deal or the sniff of a stock
buyback. But it has not obviously short-changed Amazon’s
investors. Perhaps the company’s reluctance to pursue ele-
vated margins at the expense of investment has led some
to undervalue the stock at certain times. But over the past
decade, the company has delivered shareholder returns
averaging nearly 30 per cent a year.
Indeed, there are signs that Mr Bezos’s predictable con-
duct has earned the trust of long-term holders. Until this
year’s sudden spike, the stock price had increasingly
moved not in line with passing market fashions, but with
growth in the group’s own sales. Quite what he would gain
by heeding Wall Street’s call and changing tack is hard to
see. True, there might be a short-term bump in Amazon’s
stock as the new segment of investors came on board. But
their price would doubtless come in demands for the usual
dreary menu of buybacks, restructurings and the general
prioritisation of short-term profit over investment.
When listed companies seem prone to perverse incen-
tives, with bosses preferring to act as croupiers, driving up
profit unsustainably, eschewing investment and buying
back shares, Amazon presents a refreshingly different
model. Mr Bezos may one day perceive that Amazon is a
more mature company, which should start passing more
of its returns to investors in the form of dividends. There is
no sign that this is yet the case, with the company pursuing
investments in automation, new products and also its
expanding delivery network. While these opportunities
remain open, Mr Bezos should stick to what he does best.
jonathan.ford@ft.com

Property

Investment in UK commercial property at peak but prices set to remain high, says CBRE
JUDITH EVANS
PROPERTY CORRESPONDENT
Levels of investment in the UK com-
mercial property market peaked this
year, according to CBRE, the world’s
largest property-services company by
revenues, but the group does not
expect prices to soften yet.
The LA-based company predicted that
UK real estate prices would stay rela-
tively high for a number of years, with
total returns declining by 2020 as rental
growth moderates.
“Pricing has gotten very high but
there’s a reason it has gotten
high . . . and we think it can stay high,”
said Bob Sulentic, chief executive.
“There’s a wall of capital out there that
wants to be invested in real estate.”
The cycle in London tends to move
ahead of other European cities, said
CBRE,withinvestmentvolumesinurban
centres elsewhere continuing to grow.
CBRE’sanalystssaidtheUKwas“prob-
ably at the peak of the market in invest-
ment volume in the current cycle, a little
above the last cyclical peak of about
£62bnin2006”.
They expected similar investment
volumes in each of the next two years.
CBRE predicted total returns from the
UK asset class of 10.1 per cent in 2016,
below the 2014 peak of 17.8 per cent,
and 13.1 per cent in 2015.
Central London offices reached their
highest level in terms of investment vol-
umes in 2013, said CBRE’s head of UK
research, Miles Gibson.
Mr Sulentic said the evidence showed
that the property industry had learned
lessons from the 2008 financial crisis, in
which a real estate bubble played a sig-
nificant role.
“Assets are less levered around the
world, and new development, given
how far we are into the cycle, is mean- further afield. International investors
ingfully lower than it has been in previ- accounted for 32 per cent of investment
ous cycles,” he said. in other parts of the UK, up from 20 per
“In many markets, absorption is out- cent previously.
stripping the creation of new supply. This mirrors a global trend in which
The market is more stable.” investors are looking to “second tier”
Mr Sulentic said pricing was high in cities, said Mr Sulentic. “Not only is
big cities including New York, Tokyo there less availability in the gateway
and Hong Kong. But he added: “These markets, but you can get better yields in
gateway cities are going to be stable for a the second tier.”
while.” With the US Federal Reserve
Overseas capital has been a key driver expected to raise interest rates — per-
of investment in central London since haps as soon as this week — the property
the crisis, but appears to have reached a industry is gearing up for the effects of a
plateau of about 70 per cent in 2014-15, rate rise. A UK rise is expected to follow,
CBRE said, with investors now looking but could come as late as 2017.
Real estate has traditionally suffered
from rate rises, which make higher
10.1 % 70 % yields available elsewhere, but Mr
Returns forecast Plateau reached Sulentic said wide spreads between
for the asset class by foreign capital property yields and those available
in 2016, versus in central London from long-dated government bonds
2014’s 17.8% for 2014-15 meant CBRE expected the effects to be
relatively gentle. “In the US we are going
to see interest rates rise slowly, and we
don’t think there’s going to be a lot of
impact for the first two or three years.”
Mr Sulentic said he did not expect a
significant drop in UK property invest-
ment from Asia, despite a slowdown in
Chinese economic growth and market
turmoil over the summer affecting
other emerging markets in the region.
Investors such as the insurance com-
pany Ping An and the commercial prop-
erty group Dalian Wanda have been
large-scale investors in UK commercial
real estate and in other developed prop-
erty markets.
“China is like any other place in the
world that has a build-up of capital. The
capital from China is diversifying.
Yields from property in particular in
China are low, so Chinese companies are
looking for places around the world
with higher yields,” said Mr Sulentic.
Digital disruption on way
Tech spending boosted
to meet challenge
CBRE has trebled its spending on
technology in the past four years to
almost $350m and plans further
expansion, as it anticipates digital
disruption in the real estate
industry.
“There are things out there that
we have to do, or we’re going to
lose our place in line,” said the
company’s chief executive, Bob
Sulentic. “There is going to be
disruption in our sector. There are
going to be things done with
technology that used to be done by
people, and we’re not thinking
otherwise.”
Monday 14 December 2015
Investors place a premium on China insurers
Expectations are high as emerging middle class snaps up cover but lack of consumer awareness remains a challenge
GABRIEL WILDAU — SHANGHAI
While investors shun China bank stocks
over fears of exposure to rising bad debt
and a slowing economy, insurance has
emerged as a bright spot in the financial
sector, with an emerging middle class
expected to buy more cover.
China’s eight Hong Kong-listed insur-
ers were valued at a median 10.7 times
estimated 12-month forward earnings
in early December, compared with
5 times for banks and 8.5 times for secu-
rities brokers, according to Thomson
Reuters data.
Growth expectations are being fuelled
by China’s low rate of insurance pene-
tration, giving providers room to catch
up. Premiums were only 3 per cent of
gross domestic product in 2014, com-
pared with 7 per cent in the US and 11
per cent in Japan, according to Swiss Re.
“The insurance industry is brimming
with fertile soil. The room for growth is
gigantic,” analysts at Huatai Securities
say.
Chinese bank earnings are stag-
nant and asset growth is slowing amid a
debt hangover from the lending binge
that followed the financial crisis. In con-
trast, insurance premiums grew 20 per
cent in the year to October, on pace to
reach Rmb2.24tn ($349bn) for the full
year.
The government is pushing support-
ive policies to expand the role of private
insurance in filling out the country’s
patchy social safety net.
“Whether it’s infrastructure, medical
care, pensions, and even education
reform, these all need the insurance
industry’s participation,” Meng Zhaoyi,
executive director at China Taiping
Insurance, says.
Now the challenge for insurers is
managing assets that have swelled to
$1.85tn. Long restricted to government
bonds, insurers have recently been per-
mitted freer rein, allowing them to seek
higher yields and take on greater risk.
Property acquisitions like Anbang
Insurance’s purchase of New York’s Wal-
dorf Astoria Hotel signal the beginning
of a wave of outbound investment.
Cushman and Wakefield expects Chi-
nese insurers to buy $73bn in foreign
real estate by 2019 on top of $13bn
invested already.
Insurers have diversified their
domestic portfolios to include higher-
yielding investment in the shadow
banking sector.
“Increased alternative investments
make Chinese life insurers’ credit pro-
files more vulnerable to an economic
downturn, as these types of investments
are generally less liquid than straight
bonds and are focused on the infrastruc-
ture and real estate sectors,” rating
agency Fitch says.
Just as China’s state-owned banks are
forced to lend to unprofitable projects to
support government policy priorities,
insurers have been pressed into a kind
of national service.
At the height of China’s summer stock
market rout, the insurance regulator
introduced long-awaited rule changes
allowing insurers to increase their
equity allocations. It was a signal that
authorities expected the groups to join
the “national team” of state-owned
financial institutions in propping up the
market.
Listed insurers including China Life
and Ping An fell shy of earnings fore-
casts in the third quarter in part due to
investment losses from the stock mar-
ket rout. The market has recovered,
which will boost fourth-quarter results.
Insurance
Low rates prompt differing reactions
OLIVER RALPH
INSURANCE CORRESPONDENT
Sharp differences have emerged in the
way European insurers are reacting to
low interest rates.
Poor returns on traditional investments
such as government bonds have forced
insurers to look further afield. But a sur-
vey from Standard Life Investments has
found that not all insurers are taking the
same approach.
While insurers in the UK and north-
ern Europe see better opportunities in
illiquid assets such as infrastructure and
real estate, those in southern Europe are
more likely to increase their allocation
to equities. In Germany, meanwhile,
there is increased interest in short-term
investment opportunities in response to
higher market volatility.
Standard Life asked investment spe-
cialists at 56 European insurance com-
panies, which between them control
€2.4tn in assets, about planned changes
in asset allocation.
The two largest trends to emerge were
a reduction in sovereign fixed income
and increases in real estate, regional
Skyward valuations
Kite-flying across the river from Shanghai’s financial district: China’s rate of insurance penetration is low, giving providers room to catch up — Qilai Shen/Bloomberg
China insurance: premiums and assets
Rmb tn
Health and accident
Life
Property
2.5
2.0
1.5
1.0
0.5
0 0 0
2006 08 10
* Estimate
Sources: China Insurance Regulatory Commission; CEIC
Beyond investment risk, the main
challenge facing insurers is lack of con-
sumer awareness. Most so-called life
insurance products are more akin to
certificates of deposit, where the cus-
tomer pays a single, lump-sum pre-
mium and is guaranteed a payout in sev-
eral years’ time.
Policymakers and insurers want to
promote the sale of protection-type
insurance products, where payouts are
contingent on death, illness, accidents
‘The industry is brimming
with fertile soil. The room
for growth is gigantic’
Huatai Securities analysts
or disaster. The challenge is overcoming
Chinese consumers’ reluctance to shell
out for a product where a payout is not
guaranteed. “Peace of mind” remains an
undervalued commodity for Chinese
consumers.
“The general public still considers
insurance an investment product. So it’s
not just the life insurance companies
that have to change; the culture has to
change,” says Walkman Lee, partner at
KPMG China in Beijing, who leads the
firm’s insurance consulting practice.
equities and alternatives such as hedge
funds and private equity.
Lower investment returns are prob-
lematic for life insurers — such as those
in Germany — that have offered guaran-
tees to their customers. While the target
return for investments backing such
business is 2.7 per cent, according to
Standard Life, insurers think that their
investments will only return 2.4 per
cent in future.
That has pushed many insurers
to abandon products offering guaran-
teed returns. But not all have been able
to do so.
“There is still a desire in some parts of
Europe for guarantees,” Stephen Ache-
son, executive director at Standard Life
Investments, says.
“The insurers can meet guarantees
for existing business from bonds bought
€2.4 tn 2.4 %
Value of assets Return on
controlled by investment
56 European insurers think
insurance groups they will achieve
★ FINANCIAL TIMES 17
COMPANIES
Joint ventures favoured
Never mind the profits,
focus on the growth
When it comes to China, some
overseas insurers have taken the
same line as other companies:
never mind the profits for the
moment, just look at the growth.
Two years ago Munich Re
forecast that China would rise from
being the 10th largest insurance
market in 2006 to being its third
largest by 2020. In that period,
premiums in the country are
expected to increase from €56bn to
€460bn.
Regulations prevent most
overseas companies from owning
more than half of a Chinese insurer,
so joint ventures are the preferred
operating model.
The UK’s Prudential, for example,
has had a venture with Citic since
2000. Aviva has had a venture with
Cofco, a food and oil company, for
over a decade. An exception is AIA,
the first overseas insurer granted a
licence in China.
France’s Axa is among the largest
overseas insurers in the country. It
runs via two joint ventures: in life
China insurer valuations v other financials and health with banking group
ICBC, and in property and casualty
Total Price / earnings Price / book with insurer Tianping. That has
assets helped it benefit from a rule change
14 2.0
that allowed overseas insurers to
14 12 operate in the lucrative third-party
12 10 1.5 motor liability business. It says both
10 ventures are profitable.
8 “China has been good for us, but
8 1.0
6 it is a very long-term project,”
6 deputy chief executive Denis
4 4 0.5 Duverne says.
2 2 But according to data from EY,
0 fewer than a third of foreign life
China Ping Citic Haitong China Industrial and companies, and just over half of
12 14 15* Life An Securities Securities Construction Commercial property and casualty insurers,
Bank Bank of China
made a profit in China in 2013.
To achieve this shift, the industry Trading Directory
needs to overcome questionable sales
tactics.
China Life, the country’s second-larg-
est insurer by revenue, has a sales staff
of 949,000 people. By comparison, US
insurer State Farm, which has similar
revenue, has only 18,000. That has cre-
ated unprecedented challenges for
training and monitoring.
“The Chinese consumer severely dis-
trusts anyone trying to sell them insur-
ance,” says Sam Radwan, partner at
Enhance, a consultancy focused on
China’s insurance industry.
While life insurance accounts for two-
thirds of premiums, car insurance is the
fastest-growing. Deregulation of car
insurance prices has created opportuni-
ties for insurers to introduce risk-based
pricing based on analytics.
Mr Lee says a few car insurers are
experimenting with usage-based insur-
ance, where the customer installs a
device in his car that tells insurers how
much he drives, and how safely.
“What the insurance industry is grow-
ing into is different from what we see
today,” Mr Radwan says. “You know
more or less what the Chinese banking
industry will be in the next five years.
The insurance industry is still shaping
itself.”
Additional reporting by Ma Nan
10 or 15 years ago, but for new business
they are struggling to meet the guaran-
teed returns.”
The introduction of the Solvency II
regulations at the start of January is also
playing a part in insurers’ asset alloca-
tion decisions.
In the UK, for example, rules on the
investments required to back long-term
business such as annuities are encour-
aging the insurers to buy similarly long-
term assets, such as property and infra-
structure.
A feature of the rules known as the
“matching adjustment” allows the
insurers to use these higher returning
assets, rather than sovereign bonds, to
back the annuities.
However, it is not clear whether, if and
when yields on more traditional assets,
such as sovereign debt start to improve,
the insurers will find new enthusiasm
for them.
Robert Goodman, head of insurance
relationships at Goldman Sachs Asset
Management, was reminded of the
first world war song How Ya Gonna
Keep ’em Down on the Farm (After They’ve
Seen Paree)?
18 ★ FINANCIAL TIMES Monday 14 December 2015

COMPANIES

Media

Twitter warns over potential state-sponsored hack

Social media site in alert
as it steps up scrutiny of
possible security breaches
LESLIE HOOK — SAN FRANCISCO
Twitter has issued its first ever warning
about a possible hack by state-spon-
sored actors, as the microblogging social
media site steps up its scrutiny of possi-
ble security breaches.
The company’s alert highlights grow-
ing concern over hacking activity
backed by foreign governments after a
year in which high-profile cyber attacks
included the breach of 22m personnel
profiles at the US Department of Home-
land Security.
Other companies such as Google and
Facebook already have warning systems
to alert users who may be targeted by
state-sponsored hackers.
Twitter sent a warning email to users
that it believes may have been affected,
stating that the hackers may have been
trying to obtain telephone numbers,
email addresses, and IP addresses.
The social media company started
collecting phone numbers from users
earlier this year.
State-sponsored hackers are the
most sophisticated and well-resourced
hackers.
They often use cyber attacks to con-
duct espionage or steal intellectual
property.
However most Twitter posts are pub-
lic, suggesting the hackers may have
been more interested in obtaining per-
sonal data — such phone numbers — or
finding a way to tweet through hijacked
accounts.
Some of the users who tweeted about
receiving the notice on Friday were
cryptographers, security researchers,
activists or journalists.
Many reacted on Twitter with sur-
prise — and often managed to maintain
a sense of humour.
“Remember the day when ‘state-
Twitter has sent a warning email to
users who may have been affected
sponsored actors’ meant the national
performing arts company doing Shake-
speare in the park?,” wrote user Mark
Wodrich, whose profile states he is a
“software security geek”.
Twitter said “a small group of
accounts” was affected, adding that the
company was still investigating.
A Twitter poll found that 20 per cent
of respondents had received the email
about the state-sponsored attack, based
on 46 users who responded to the sur-
vey posted on Twitter by the user
Stribika.
Twitter has alerted users about secu-
rity breaches before, such as in 2013
when it emailed more than 200,000
users to alert them their Twitter
account passwords and email addresses
may have been stolen.
Twitter confirmed that it had sent the
email about state-sponsored actors,
declining to comment further.
One prominent example of state-
sponsored hacks is the work of the Syr-
ian Electronic Army, which has previ-
ously targeted newspaper Twitter
accounts and used them to broadcast
false news.
The Syrian Electronic Army is a group
of hackers who support the Syrian presi-
dent, and have also targeted Skype and
the websites of several newspapers.
Additional reporting by Hannah Kuchler

China. Anti-graft push

Fosun affair sparks fears of accelerated capital and talent flight

Relations between companies
and the party are felt to be
entering a dangerous phase
TOM MITCHELL — BEIJING
The disappearance of one of China’s
tycoons has sparked fears of a danger-
ous phase in companies’ relations with
the Communist party, with one expert
warning of a “Richter 9” earthquake
across the private sector.
Shanghai-based Fosun Group yester-
day reiterated that chairman Guo
Guangchang was “assisting authorities”
in an unspecified investigation, though
the company insisted it was not the sub-
ject of the probe.
It is not clear if Mr Guo, who has not
been accused of any wrongdoing, is
assisting authorities in an anti-corrup-
tion investigation, stock market probe
or separate matter.
It is not unusual for government
or company officials to assist in investi-
gations in which they are not later
implicated.
The detention comes three years into
President Xi Jinping’s unprecedented
anti-corruption campaign, which has
netted a number of powerful officials or
“tigers” but relatively few in the private
sphere.
A string of European financial and lei-
sure industry acquisitions has thrust Mr
Guo into the limelight, making him one
of the faces of corporate China — argua-
bly outshone only by Jack Ma, founder
of online retailer Alibaba.
The Fosun chairman was ranked 17th
on Hurun’s latest China Rich List, with
his estimated wealth rising almost 80
per cent over the past year to $7.8bn.
It is still not clear whether Mr Guo is
being held by police or the party’s Cen-
tral Commission for Discipline Inspec-
tion (CCDI), which is leading the anti-
corruption campaign.
Yan Jiehe, a construction magnate
and China’s sixth-richest man, said that
entrepreneurs often felt a need to “lean
on a mountain”, meaning find a power-
ful political patron. “But sometimes
mountains turn into volcanoes.”
China authorities did not respond to
repeated requests for comment.
On Friday Fosun said that Mr Guo
might continue to weigh in on company
decisions “via appropriate means” and
that he had shown awareness of the dan-
gers of becoming too close to political
patrons, reportedly telling colleagues
The Fosun they should “stay close to politics but
chairman’s stay away from politicians”.
detention might Even if Mr Guo emerges unscathed,
give wealthy his detention has shocked the
Chinese, already country and the international business
disillusioned by community.
food safety It could give China’s wealthy —
scandals and already disillusioned by chronic pollu-
chronic tion and frequent food safety scandals —
pollution, further impetus to move their families,
further cause to their money and themselves abroad.
head overseas Last year the Hurun Report released a
Philippe Lopez/AFP/Getty
survey of 141 wealthy Chinese that
found that two-thirds were either emi-
grating or had plans to do so.
Any fear that Mr Xi’s anti-corruption
campaign — or a more recent investiga-
tion into this summer’s selldown on the
Shanghai and Shenzhen stock
exchanges — is spreading to the private
sector could accelerate this trend, espe-
cially given Mr Guo’s fame and reputa-
tion.
While the fall-off in China’s foreign
exchange reserves has sparked a heated
debate about whether or not money is
leaking out of the country through illicit
channels, wealth management advisers
note that every overseas IPO or acquisi-
tion by a Chinese company is a legiti-
mate form of capital flight.
“Most of our clients want to list their
companies on foreign stock exchanges,”
said one financial adviser who works
with rich Chinese families.
Mr Guo, a philosophy graduate, does
not fit the brash stereotype of China’s
newly minted billionaires.
“He is so respected,” said Hurun’s
Rupert Hoogewerf, who likened the
news to a Richter 9 earthquake for
China’s private sector.
“He’s not a Donald Trump fig-
ure . . . He’s quite considered, eloquent
and sophisticated. He’s leading the pack
in a certain way.”
Mr Hoogewerf said a number of entre-
preneurs had been in touch with him
about Mr Guo’s detention.
Mr Guo’s influence goes beyond the
business sphere. The tycoon, who has
served on government advisory body
the Chinese People’s Political Consulta-
tive Congress as well as the National
People’s Congress, China’s parliament,
also ranks in the top 10 of Hurun’s
annual Power List.
In an article published last year, Mr
Guo suggested that he had nothing to
fear at home and was not interested in
acquiring a foreign passport.
“If I have been good,” he wrote in
China Entrepreneur magazine, “why
would the government want to target
17th me? That would not be in line with the
Guo Guangchang’s reform policy.”
ranking in Two years ago the party committed
Hurun’s latest itself to a reform blueprint that pledged
China Rich List to give market forces a “decisive role” in
the economy. However, it has retained
$7.8bn its grip on the economy, ensuring that
key sectors continue to be dominated by
His estimated
wealth — large state-owned enterprises.
up nearly 80% Additional reporting by Patti Waldmeir,
over the past year Jackie Cai and Wan Li
Jailed Gome founder
Incarceration proves no
deterrent to dealmaking
Dozens, if not hundreds, of senior
company executives have been
caught up in Xi Jinping’s sweeping
anti-corruption campaign, which
was launched in 2012.
Most have been officials at state-
owned enterprises. The relatively
few private sector businessmen
to be implicated have typically
been low-profile figures associated
with Mr Xi’s vanquished political
rivals, notably Zhou Yongkang and
Bo Xilai.
A more recent investigation into
this summer’s stock market
collapse has similarly focused on
state-owned brokerages, such as
Citic Securities, but is more likely
to implicate private sector
executives as well.
The last high-profile Chinese
billionaire to be caught up in such
an investigation was Huang
Guangyu, the 46-year-old founder
of electronics retailer Gome.
Huang, originally from southern
Guangdong province, peddled
radios and batteries in Inner
Mongolia and Beijing before
striking it rich.
His career peaked in 2007 when
he was estimated to be China’s
richest man with a fortune of more
than $6bn.
Huang was detained a year later
and eventually given a 14-year
prison sentence for bribery and
insider trading.
Incarceration has not proved
much of an obstacle to Gome’s
founder.
From behind bars, he has waged
and won a battle for control of his
company with Bain Capital.
In 2011, a Bain-backed chairman
was replaced by a friend of
Huang’s. Bain has since sold its
minority stake in Gome while
Huang recently completed
a $1.5bn deal that will again
give him majority control of
the company.
In October Hurun’s China Rich
List estimated Huang’s fortune at
$3.4bn, making him the country’s
87th-richest person.
Tom Mitchell

Contracts & Tenders

Mining

Anglo set for South Africa fight over shake-up plan

JAMES WILSON
MINING CORRESPONDENT
Anglo American is preparing for a fight
in South Africa over its restructuring
plans as it considers whether to exit its
investment in the country’s largest iron
ore miner.
Kumba Iron Ore is on a long list of assets
Anglo is considering putting up for sale
as part of proposals outlined last week
by Mark Cutifani, chief executive, to
arrest the miner’s underperformance in
a deepening commodities downturn.
Mr Cutifani said Anglo must concen-
trate on its most profitable assets and
could end up with a portfolio of about 20
mines, down from more than 50 today.
Shares in the miner fell 20 per cent
last week as Mr Cutifani announced his
plans and said the annual shareholder
dividend would be scrapped.
Anglo owns almost 70 per cent of
Kumba, which is considered vulnerable
because its mines are not as competitive
as those of rivals in Brazil and Australia.
While Anglo wants to improve
Kumba, it could also decide to sell out if
its two mines remain uncompetitive.
The iron ore price has sunk to less than
$40 per tonne, below the cost at which
Sishen, Kumba’s largest mine, can get
ore to China.
“We must sweat the footprint greatly
to compete,” said Tony O’Neill, Anglo’s
technical director.
Anglo would face months of delicate
talks with South Africa’s government
and unions if it did want to change the
status of its investment in Kumba.
Anglo’s Kumba iron ore mine remains uncompetitive — Nadine Hutton/Bloomberg
In a statement last week, South
Africa’s Department of Mineral
Resources said it needed to be notified
of any large-scale restructuring. “The
department is thus awaiting a detailed
presentation from the company in this
regard, which should include the impact
on jobs and measures to save them,
transformation as well as other national
imperatives,” it said.
Kumba runs three mines, one of
which Anglo is closing this year. The
group, which has a stock market listing
in South Africa, employs 14,000.
Anglo is trying to sell coal mines in
South Africa, where it is also waiting for
regulatory approval for a partial exit
from its platinum mines, having agreed
a deal to sell them to Sibanye Gold, a
smaller precious metals miner.
Trade unions in South Africa have
voiced alarm at the scale of Anglo’s
planned cutbacks.
Mr Cutifani said he would give more
details of assets Anglo would offload in
February. But he made clear that Anglo’s
position in bulk commodities — iron ore
and coal — was under particular threat
from prolonged low prices.
Anglo is also considering the future of
Minas-Rio, its new iron ore mine in Bra-
zil, despite a $13bn investment in the
project.
Demand for iron ore, which is used in
steelmaking, is under threat from lower
infrastructure investment in China,
while miners also expanded the global
supply of iron ore during the commodi-
ties boom.
Additional reporting by Andrew England
Monday 14 December 2015 ★ FINANCIAL TIMES 19
20 ★ FINANCIAL TIMES Monday 14 December 2015

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

Change during previous day’s trading (%)
S&P 500 Nasdaq Composite Dow Jones Ind FTSE 100 FTSE Eurofirst 300 Nikkei Hang Seng FTSE All World $ $ per € $ per £ ¥ per $ £ per € Oil Brent $ Sep Gold $

-1.94% -2.21% -1.76% -2.22% -2.14% -1.11% -1.57% -0.448% -3.26%

0.97% 0.548% 0.330% 0.277% 0.14%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Nov 12 - Dec 11 Index All World Nov 12 - Dec 11 Index All World Nov 12 - Dec 11 Index All World Nov 12 - Dec 11 Index All World Nov 12 - Dec 11 Index All World Nov 12 - Dec 11 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul

2,075.00 13,127.18 19,691.39 1,993.36

6,178.68 10,782.63 19,230.48
12,789.95
2,012.37 5,952.78 10,340.06 1,948.62
Day -1.94% Month -3.33% Year -0.68% Day -1.74% Month -4.14% Year -8.02% Day -2.22% Month -5.22% Year -7.63% Day -2.44% Month -5.21% Year 4.84% Day 0.97% Month -2.24% Year 10.44% Day -0.18% Month -2.40% Year 0.16%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore

5,067.02 44,347.91 1,470.05 10,144.00 22,888.92 2,959.01

4,933.47 1,397.49 21,464.05 2,834.63
41,957.63 9,630.70
Day -2.21% Month -2.95% Year 5.33% Day -1.05% Month -5.29% Year 0.69% Day -2.14% Month -6.33% Year 3.11% Day -1.51% Month -6.83% Year -7.37% Day -1.11% Month -4.19% Year -8.76% Day -0.49% Month -5.44% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
17,702.22 4,856.65 3,632.90 25,743.26
46,846.87 21,859.29
17,265.21 45,333.94 25,044.43
4,549.56 21,015.29 3,434.58
Day -1.76% Month -2.78% Year -1.53% Day -0.81% Month -3.83% Year -9.22% Day -1.84% Month -7.38% Year 7.61% Day -1.84% Month -6.12% Year 9.45% Day -0.61% Month -5.66% Year 16.82% Day -0.82% Month -2.71% Year -10.01%

Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous
Argentina Merval 12779.23 13106.53 Cyprus CSE M&P Gen 66.97 66.90 Italy FTSE Italia All-Share 22752.72 23157.14 Philippines Manila Comp 6735.01 6820.60 Taiwan Weighted Pr 8115.89 8216.17 Cross-Border DJ Global Titans ($) 230.81 234.94
Australia All Ordinaries 5078.60 5087.50 Czech RepublicPX 922.71 931.45 FTSE Italia Mid Cap 33730.72 34090.46 Poland Wig 44220.32 45093.65 Thailand Bangkok SET 1280.92 1297.82 Euro Stoxx 50 (Eur) 3203.21 3269.97
S&P/ASX 200 5029.50 5037.70 Denmark OMXC Copenahgen 20 965.74 990.60 FTSE MIB 21015.29 21409.63 Portugal PSI 20 5086.23 5172.14 Turkey BIST 100 72354.16 74583.74 Euronext 100 ID 885.04 902.67
S&P/ASX 200 Res 2293.60 2307.20 Egypt EGX 30 6637.91 6629.32 Japan 2nd Section 4736.12 4719.27 PSI General 2374.05 2417.75 UAE Abu Dhabi General Index 4086.33 4083.86 FTSE 4Good Global ($) 5338.55 5428.14
Austria ATX 2339.86 2387.75 Estonia OMX Tallinn 900.62 900.23 Nikkei 225 19230.48 19046.55 Romania BET Index 6943.70 7026.77 UK FT 30 2750.70 2806.70 FTSE All World 259.43 263.57
Belgium BEL 20 3538.54 3577.98 Finland OMX Helsinki General 8305.25 8528.28 S&P Topix 150 1283.96 1275.86 Russia Micex Index 1720.31 1732.89 FTSE 100 5952.78 6088.05 FTSE E300 1397.49 1428.08
BEL Mid 5779.81 5848.59 France CAC 40 4549.56 4635.06 Topix 1549.51 1540.35 RTX 777.17 792.78 FTSE 4Good UK 5443.92 5557.84 FTSE Eurotop 100 2770.78 2833.00
Brazil Bovespa 45262.72 45630.71 SBF 120 3590.15 3656.85 Jordan Amman SE 2059.79 2047.02 Saudi-Arabia TADAWUL All Share Index 6949.00 7000.72 FTSE All Share 3295.07 3362.26 FTSE Global 100 ($) 1291.86 1315.34
Canada S&P/TSX 60 753.11 766.76 Germany M-DAX 20196.80 20669.81 Kenya NSE 20 3995.09 4002.63 Singapore FTSE Straits Times 2834.63 2848.46 FTSE techMARK 100 3913.46 3943.19 FTSE Gold Min ($) 906.52 905.97
S&P/TSX Comp 12789.95 13016.59 TecDAX 1766.64 1799.64 Kuwait KSX Market Index 5686.15 5729.52 Slovakia SAX 295.26 295.10 USA DJ Composite 5906.39 6000.86 FTSE Latibex Top (Eur) 2332.00 2402.40
S&P/TSX Met & Min 325.61 336.23 XETRA Dax 10340.06 10598.93 Latvia OMX Riga 592.35 591.88 Slovenia SBI TOP 682.93 684.94 DJ Industrial 17265.21 17574.75 FTSE Multinationals ($) 1493.16 1493.09
Chile IGPA Gen 17493.78 17625.50 Greece Athens Gen 578.30 576.51 Lithuania OMX Vilnius 483.82 484.51 South Africa FTSE/JSE All Share 48067.53 48984.53 DJ Transport 7524.64 7671.47 FTSE World ($) 460.44 467.82
China FTSE A200 9198.95 9237.51 FTSE/ASE 20 169.97 170.10 Luxembourg LuxX 1335.78 1368.71 FTSE/JSE Res 20 25169.32 25183.40 DJ Utilities 551.13 552.56 FTSEurofirst 100 (Eur) 3929.77 4021.78
FTSE B35 11043.84 11082.19 Hong Kong Hang Seng 21464.05 21704.61 Malaysia FTSE Bursa KLCI 1640.14 1648.65 FTSE/JSE Top 40 43558.35 44250.70 Nasdaq 100 4537.56 4643.05 FTSEurofirst 80 (Eur) 4306.58 4398.03
Shanghai A 3595.68 3617.69 HS China Enterprise 9308.00 9450.49 Mexico IPC 42000.63 42447.77 South Korea Kospi 1948.62 1952.07 Nasdaq Cmp 4933.47 5045.17 MSCI ACWI Fr ($) 399.35 399.76
Shanghai B 390.38 389.63 HSCC Red Chip 3978.40 4024.74 Morocco MASI 9108.93 9122.70 Kospi 200 240.35 240.60 NYSE Comp 9976.65 10172.04 MSCI All World ($) 1663.88 1664.37
Shanghai Comp 3434.58 3455.50 Hungary Bux 23125.86 23477.19 Netherlands AEX 429.10 437.84 Spain IBEX 35 9630.70 9778.70 S&P 500 2012.37 2052.23 MSCI Europe (Eur) 1394.06 1398.78
Shenzhen A 2297.01 2313.86 India BSE Sensex 25044.43 25252.32 AEX All Share 660.23 673.46 Sri Lanka CSE All Share 6832.35 6823.91 Wilshire 5000 20823.36 21254.93 MSCI Pacific ($) 2271.12 2278.74
Shenzhen B 1273.47 1269.59 S&P CNX 500 6425.45 6484.25 New Zealand NZX 50 6069.94 6040.56 Sweden OMX Stockholm 30 1401.14 1433.41 Venezuela IBC 14885.17 14654.84 S&P Euro (Eur) 1431.74 1460.76
Colombia COLCAP 1080.06 1062.02 Indonesia Jakarta Comp 4393.52 4466.21 Nigeria SE All Share 27205.95 27004.50 OMX Stockholm AS 488.18 498.89 Vietnam VNI 563.43 561.04 S&P Europe 350 (Eur) 1433.64 1464.51
Croatia CROBEX 1659.99 1673.30 Ireland ISEQ Overall 6628.15 6684.81 Norway Oslo All Share 632.93 642.62 Switzerland SMI Index 8502.06 8632.63 S&P Global 1200 ($) 1806.95 1836.22
Israel Tel Aviv 100 13.20 13.28 Pakistan KSE 100 33048.51 33048.51 Stoxx 50 (Eur) 3018.92 3086.07
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Dec 11 %Chg %Chg Dec 11 %Chg %Chg Dec 11 %Chg %Chg Dec 11 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Apple 52.8 113.18 -2.99 Royal Dutch Shell 157.7 1453.50 -68.50 Novartis N 531.0 77.93 0.00 Toyota Motor 917.8 7685.00 84.00 Ashtead 1088.00 3.4 -5.6 Micro Focus Int 1538.00 17.1 42.4 Stock Spirits 127.75 22.8 -41.9 Software & Computer Services 1650.49 0.3 32.4
Amazon.com 34.7 640.15 -22.17 Hsbc Holdings 156.6 498.00 -12.80 Roche Gs 368.8 248.86 0.00 Fast Retailing Co., 688.6 45940.00 500.00 Merlin Entertainments 436.00 1.7 9.4 Spire Healthcare 323.90 8.9 -14.8 888 Holdings 184.50 7.1 33.2 Gas Water & Multiutilities 5743.93 -0.4 -6.1
Facebook Class A 26.8 102.12 -3.30 Royal Dutch Shell 142.1 1460.00 -73.50 Nestle N 365.2 68.18 0.00 Mitsubishi Ufj Fin,. 614.8 775.90 -3.60 Tui Ag 1154.00 1.5 7.9 Cls Holdings 1800.00 8.0 17.7 Xchanging 192.50 6.5 23.8 Electronic & Electrical Equip. 4140.36 -0.4 2.6
Microsoft 21.3 54.06 -1.21 Sabmiller 139.3 4007.50 -27.50 Total 356.3 41.80 -1.28 Softbank . 538.3 6262.00 36.00 National Grid 904.30 0.4 -1.5 Croda Int 2977.00 5.2 11.8 Carpetright 480.50 4.9 20.0 Real Estate & Investment Servic 3020.84 -0.9 13.1
Netflix 19.1 118.91 -4.00 British American Tobacco 137.5 3599.00 -95.00 Daimler Ag Na O.n. 354.5 77.24 0.00 Sumitomo Mitsui Fin,. 514.7 4659.00 -14.00 Carnival 3447.00 -0.1 18.1 Moneysupermarket.com 329.90 5.1 41.0 Flybe 93.50 4.8 -15.8 Electricity 8233.39 -1.0 -16.1
General Electric 18.9 30.26 -0.39 Vodafone 129.9 208.15 -4.50 Basf Se Na O.n. 328.2 70.50 0.00 Fanuc 441.4 21475.00 345.00 Centrica 210.90 -0.2 -24.4 Wood (john) 576.50 4.4 -3.4 Kainos 243.75 4.6 - Household Goods 15870.60 -1.6 24.2
Alphabet Class C Capital Stock 16.4 738.87 -10.59 Glaxosmithkline 120.5 1297.50 -16.50 Bayer Ag Na 311.9 114.70 0.00 Kddi 390.2 2948.50 14.50 Admiral 1613.00 -0.3 22.0 Bwin.party Digital Entertainment 112.70 4.3 -4.3 Helical Bar 465.50 4.6 21.6 Nonlife Insurance 2415.64 -1.6 25.0
Alphabet Class A Common Stock 16.0 750.42 -9.62 Rio Tinto 119.7 1885.50 -85.50 Royal Dutch Shella 308.4 20.36 -0.93 Mizuho Fin,. 357.0 243.70 0.90 Sse 1435.00 -0.5 -11.5 Foxtons 186.80 3.8 16.6 Majedie Investments 267.25 4.4 11.8 Equity Investment Instruments 7228.56 -1.8 -0.1
Bank Of America 15.3 16.73 -0.47 Bp 109.3 338.00 -12.95 Sanofi 297.9 76.42 -0.34 Sony 314.7 3041.00 36.00 Sabmiller 4007.50 -0.7 19.2 Rexam 598.00 3.5 31.8 Vp 769.50 3.9 22.1 Food Producers 8832.63 -1.9 8.7
Exxon Mobil 15.2 74.34 -1.35 Astrazeneca 105.5 4330.00 -49.50 Allianz Se Vna O.n. 290.9 161.95 0.00 Honda Motor Co., 304.7 3914.00 25.00 Inmarsat 1100.00 -0.8 37.6 Diploma 753.50 2.7 6.3 Rm 170.00 3.0 11.8 Chemicals 10477.96 -1.9 -7.2
Easyjet 1658.00 -1.0 -0.8 Bellway 2673.00 2.4 37.9 Medicx Fund 87.00 3.0 4.8 Health Care Equip.& Services 6618.46 -2.0 -1.5
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Reckitt Benckiser 6124.00 -1.3 17.5 Int Public Partnerships Ld 141.00 2.2 4.3 Jpmorgan Euro Small Co. Trust 270.50 2.9 32.3 Pharmaceuticals & Biotech. 12077.67 -2.1 -4.7
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Whole Foods Market 34.02 2.69 8.59 Entertainment One 177.00 7.60 4.49 Telenor 15.54 0.13 0.81 Comsys Holdings 1759.00 76.00 4.52 Anglo American 292.95 -22.1 -75.6 Premier Oil 49.35 -24.1 -70.5 Lonmin 0.00 -96.4 - Forestry & Paper 13733.48 -14.4 21.5
Corning orporated 18.68 0.99 5.60 Bellway 2673.00 104.00 4.05 Kbc 54.47 0.42 0.78 Credit Saison Co., 2413.00 96.00 4.14 Old Mutual 155.70 -21.8 -99.2 Investec 419.00 -21.8 -22.6 Hochschild Mining 47.00 -15.3 -46.6 Industrial Metals 677.10 -10.1 -55.5
Csx 25.72 1.02 4.13 Jimmy Choo 110.10 4.10 3.87 Caixabank 3.45 0.01 0.23 Yaskawa Electric 1679.00 56.00 3.45 Sports Direct Int 586.00 -16.0 -17.6 Vedanta Resources 289.90 -19.4 -49.5 Imagination 170.00 -14.6 -25.8 Mining 6926.21 -8.8 -51.3
Centerpoint Energy 16.69 0.55 3.41 Foxtons 186.80 6.80 3.78 Suez Environnement 17.33 0.03 0.17 Tokai Carbon Co., 356.00 10.00 2.89 Mondi 1275.00 -14.4 21.4 Int Personal Finance 296.00 -17.8 -34.2 Ferrexpo 22.50 -11.8 -57.5 Food & Drug Retailers 2393.00 -8.3 -15.3
Adobe Systems 91.42 2.46 2.77 Fidessa 1931.00 55.00 2.93 Cnh Industrial 6.50 0.01 0.15 Obayashi 1143.00 32.00 2.88 Antofagasta 428.90 -12.8 -43.0 Tullow Oil 159.60 -15.2 -61.4 Jpmorgan Global Emerging Markets ome Trust 79.25 -8.9 -32.5 Oil & Gas Producers 5376.53 -7.6 -24.4
Bhp Billiton 694.20 -11.9 -50.0 Stagecoach 304.00 -15.1 -18.0 Premier Foods 36.00 -8.3 12.5 General Financial 8926.70 -5.6 4.8
Downs Downs Downs Downs
Tesco 144.35 -11.2 -23.6 Ocado 324.10 -15.0 -19.0 Enquest 20.00 -8.0 -43.7 General Retailers 2963.56 -5.6 -0.3
Southwestern Energy 5.90 -0.96 -13.99 Premier Oil 49.35 -7.80 -13.65 Arcelormittal 3.60 -0.24 -6.38 Sekisui House, 1976.00 -103.50 -4.98
Bg 925.80 -9.7 7.0 Entertainment One 177.00 -14.8 -45.1 Dialight 456.50 -8.0 -43.6 Banks 3583.46 -5.1 -17.8
Williams Companies 26.42 -3.26 -10.98 Investec 419.00 -50.90 -10.83 Renault 87.84 -4.90 -5.28 Nippon Suisan Kaisha, 446.00 -12.00 -2.62
Rio Tinto 1885.50 -9.4 -37.2 Serco 98.70 -13.6 -38.6 Lamprell 96.25 -7.9 -20.5 Life Insurance 7444.85 -4.8 -1.3
Range Resources 22.75 -2.62 -10.33 Old Mutual 155.70 -18.50 -10.62 Altice 10.59 -0.50 -4.51 Maruha Nichiro 1891.00 -44.00 -2.27
Royal Dutch Shell 1460.00 -8.7 -34.6 Pz Cussons 273.70 -12.6 -10.6 Mothercare 228.00 -7.8 30.3 Tobacco 43856.02 -4.3 8.2
Cabot Oil & Gas 16.10 -1.58 -8.94 Tullow Oil 159.60 -17.50 -9.88 Royal Dutch Shella 20.36 -0.93 -4.39 Yahoo Japan 512.00 -10.00 -1.92
Pearson 714.00 -8.7 -40.0 Jimmy Choo 110.10 -12.1 -37.1 Ite 148.00 -7.4 -7.5 Automobiles & Parts 6647.12 -3.9 -17.2
Oneok 20.31 -1.99 -8.92 Onesavings Bank 346.70 -37.20 -9.69 Acs Const. 27.02 -1.21 -4.29 Shiseido , 2659.00 -51.00 -1.88
Kingfisher 323.30 -8.5 -5.1 Aldermore 212.00 -10.5 - Baring Emerging Europe 450.00 -7.3 -9.0 Aerospace & Defense 4065.08 -3.9 -14.4
Based on the constituents of the S&P500 and the Nasdaq 100 index Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Dec 11 Currency Mid Change Mid Change Mid Change Dec 11 Currency Mid Change Mid Change Mid Change Dec 11 Currency Mid Change Mid Change Mid Change Dec 11 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 9.7700 0.0228 10.7441 0.0836 14.8645 0.0844 Indonesia Indonesian Rupiah 13947.5000 12.5000 15338.0585 97.3854 21220.3843 90.0822 Poland Polish Zloty 3.9687 -0.0059 4.3644 0.0174 6.0382 0.0114 ..Three Month 0.6573 -0.0022 0.7226 0.0015 - -
Australia Australian Dollar 1.3875 0.0171 1.5259 0.0270 2.1111 0.0330 Israel Israeli Shekel 3.8477 -0.0196 4.2313 0.0016 5.8540 -0.0102 Romania Romanian Leu 4.1134 -0.0169 4.5235 0.0063 6.2583 -0.0046 ..One Year 0.6574 -0.0022 0.7220 0.0015 - -
Bahrain Bahrainin Dinar 0.3773 - 0.4149 0.0023 0.5740 0.0019 Japan Japanese Yen 120.9850 -0.5450 133.0470 0.1300 184.0720 -0.2096 Russia Russian Ruble 69.7763 0.9587 76.7329 1.4674 106.1607 1.8096 United States United States Dollar - - 1.0997 0.0060 1.5214 0.0051
Bolivia Bolivian Boliviano 6.9100 - 7.5989 0.0415 10.5132 0.0352 ..One Month 120.9848 -0.5453 133.0470 0.1300 184.0718 -0.2100 Saudi Arabia Saudi Riyal 3.7520 0.0000 4.1260 0.0225 5.7084 0.0191 ..One Month - - 1.0996 -0.4167 1.5215 0.0051
Brazil Brazilian Real 3.8796 0.1076 4.2664 0.1410 5.9026 0.1830 ..Three Month 120.9847 -0.5456 133.0471 0.1301 184.0716 -0.2104 Singapore Singapore Dollar 1.4131 0.0111 1.5539 0.0206 2.1499 0.0240 ..Three Month - - 1.0994 -0.4166 1.5214 0.0051
Canada Canadian Dollar 1.3706 0.0116 1.5072 0.0209 2.0853 0.0245 ..One Year 120.9835 -0.5481 133.0470 0.1300 184.0718 -0.2119 South Africa South African Rand 16.0150 0.8117 17.6117 0.9839 24.3659 1.3125 ..One Year - - 1.0983 -0.4166 1.5216 0.0051
Chile Chilean Peso 709.2600 5.7850 779.9723 10.5838 1079.1000 12.3882 Kenya Kenyan Shilling 102.1000 0.2500 112.2792 0.8862 155.3395 0.8996 South Korea South Korean Won 1179.5000 -2.0500 1297.0948 4.8370 1794.5444 2.9052 Venezuela Venezuelan Bolivar Fuerte 6.3055 0.0205 6.9342 0.0603 9.5935 0.0632
China Chinese Yuan 6.4553 0.0175 7.0989 0.0579 9.8214 0.0594 Kuwait Kuwaiti Dinar 0.3032 -0.0002 0.3334 0.0017 0.4613 0.0013 Sweden Swedish Krona 8.4800 -0.0247 9.3255 0.0239 12.9019 0.0058 Vietnam Vietnamese Dong 22500.0000 20.0000 24743.2272 156.8922 34232.6244 145.0466
Colombia Colombian Peso 3301.0000 38.4500 3630.1067 61.8653 5022.2914 75.1345 Malaysia Malaysian Ringgit 4.2925 0.0300 4.7205 0.0586 6.5308 0.0674 Switzerland Swiss Franc 0.9836 -0.0052 1.0817 0.0002 1.4966 -0.0029 European Union Euro 0.9093 -0.0050 - - 1.3835 -0.0029
Costa Rica Costa Rican Colon 531.2700 -1.2300 584.2369 1.8433 808.2980 0.8436 Mexico Mexican Peson 17.3814 0.3089 19.1143 0.4422 26.4448 0.5570 Taiwan New Taiwan Dollar 32.8120 -0.0205 36.0833 0.1745 49.9216 0.1362 ..One Month 0.9092 -0.0050 - - 1.3834 -0.0029
Czech Republic Czech Koruna 24.5708 -0.1348 27.0205 0.0000 37.3831 -0.0791 New Zealand New Zealand Dollar 1.4892 0.0088 1.6377 0.0186 2.2657 0.0210 Thailand Thai Baht 36.0300 0.0400 39.6221 0.2600 54.8177 0.2444 ..Three Month 0.9091 -0.0050 - - 1.3833 -0.0029
Denmark Danish Krone 6.7848 -0.0370 7.4612 0.0003 10.3227 -0.0215 Nigeria Nigerian Naira 199.0000 -0.2000 218.8400 0.9756 302.7675 0.7113 Tunisia Tunisian Dinar 2.0133 -0.0047 2.2140 0.0069 3.0630 0.0031 ..One Year 0.9080 -0.0050 - - 1.3827 -0.0029
Egypt Egyptian Pound 7.8294 0.0238 8.6099 0.0730 11.9119 0.0759 Norway Norwegian Krone 8.6950 0.0621 9.5619 0.1202 13.2290 0.1386 Turkey Turkish Lira 2.9749 0.0563 3.2714 0.0794 4.5261 0.1005
Hong Kong Hong Kong Dollar 7.7506 0.0002 8.5233 0.0467 11.7920 0.0397 Pakistan Pakistani Rupee 104.2150 0.2650 114.6051 0.9153 158.5574 0.9332 United Arab Emirates UAE Dirham 3.6729 -0.0001 4.0390 0.0220 5.5880 0.0187
Hungary Hungarian Forint 289.1198 -1.1381 317.9446 0.4905 439.8797 -0.2516 Peru Peruvian Nuevo Sol 3.3785 0.0040 3.7153 0.0247 5.1402 0.0233 United Kingdom Pound Sterling 0.6573 -0.0022 0.7228 0.0015 - -
India Indian Rupee 66.8700 0.0850 73.5369 0.4943 101.7390 0.4698 Philippines Philippine Peso 47.2375 0.0475 51.9470 0.3355 71.8692 0.3129 ..One Month 0.6573 -0.0022 0.7227 0.0015 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries Dec 11 Dec 10 Dec 09 Dec 08 Dec 07 Yr Ago High Low Year to date percentage changes Closing Week's Closing Week's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 2750.70 2806.70 2828.50 2836.50 2874.50 0.00 3110.40 2575.90 Software & Comp Serv 34.38 FTSE 250 Index 4.92 FTSE All{HY-}Share Index -6.73 FTSE 100 Price Change FTSE 100 Price Change
Dec 11 chge% Index Dec 10 Dec 09 ago yield% Cover ratio adj Return FT 30 Div Yield 1.79 1.76 1.75 1.74 1.72 0.00 3.93 2.74 Nonlife Insurance 25.20 Financial Services 4.83 NON FINANCIALS Index -6.92 3I Group PLC 463.00 -18.30 Kingfisher PLC 323.30 -30.10
FTSE 100 (100) 5952.78 -2.22 6421.38 6088.05 6126.68 6300.63 4.19 1.44 16.50 246.09 4661.95 P/E Ratio net 24.92 25.38 25.55 25.70 26.01 0.00 19.44 14.26 Household Goods & Ho 24.29 Consumer Services 2.94 Chemicals -7.02 Aberdeen Asset Management PLC 286.30 -17.70 Land Securities Group PLC 1157 -49.00
FTSE 250 (250) 16877.29 -1.19 18205.85 17080.25 17139.85 15377.10 2.56 2.10 18.57 436.62 11740.40 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Forestry & Paper 21.43 Support Services 2.87 Industrial Transport -7.73 Admiral Group PLC 1613 -5.00 Legal & General Group PLC 258.30 -9.00
FTSE 250 ex Inv Co (211) 18353.16 -1.22 19797.90 18579.68 18640.38 16556.40 2.58 2.22 17.44 478.25 13018.15 FT 30 hourly changes Construct & Material 19.91 FTSE SmallCap Index 2.81 Utilities -8.47 Anglo American PLC 292.95 -83.10 Lloyds Banking Group PLC 70.01 -3.00
FTSE 350 (350) 3341.57 -2.04 3604.61 3411.04 3430.94 3447.88 3.90 1.52 16.84 128.82 5274.65 8 9 10 11 12 13 14 15 16 High Low Technology 18.34 Telecommunications 2.63 FTSE 100 Index -9.34 Antofagasta PLC 428.90 -62.80 London Stock Exchange Group PLC 2493 -122.00
FTSE 350 ex Investment Trusts (311) 3317.23 -2.06 3578.36 3387.06 3406.88 3427.28 3.93 1.53 16.65 128.96 2696.10 2806.7 2792.9 2796.4 2783.5 2777 2770.6 2775.2 2752.8 2754.9 2806.7 2750.5 Fixed Line Telecomms 13.83 Electronic & Elec Eq 2.53 Aerospace & Defense -14.40 Arm Holdings PLC 1074 -42.00 Marks And Spencer Group PLC 465.10 -32.20
FTSE 350 Higher Yield (107) 2998.10 -2.42 3234.10 3072.34 3093.50 3361.35 5.80 1.28 13.45 171.99 4854.56 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Real Est Invest & Se 13.69 General Retailers 0.55 Food & Drug Retailer -15.60 Ashtead Group PLC 1088 36.00 Meggitt PLC 361.40 -15.60
FTSE 350 Lower Yield (243) 3374.26 -1.66 3639.88 3431.13 3447.55 3197.66 2.02 2.21 22.44 70.78 3569.18 Leisure Goods 11.00 Equity Invest Instr -0.66 Electricity -15.94 Associated British Foods PLC 3403 -82.00 Merlin Entertainments PLC 436.00 7.30
FTSE SmallCap (288) 4488.48 -0.98 4841.81 4532.85 4547.78 4246.18 2.98 1.47 22.80 123.82 6146.47 Consumer Goods 8.91 Personal Goods -0.99 Automobiles & Parts -17.35
FTSE SmallCap ex Inv Co (152) 4065.02 -0.74 4385.01 4095.14 4108.92 3680.24 2.90 2.06 16.75 110.11 5846.64 FX: EFFECTIVE INDICES Food Producers 8.13 Industrials -1.11 Banks -18.09
Astrazeneca PLC 4330 -112.00 Mondi PLC 1275 -215.00
Aviva PLC 490.60 -16.90 Morrison (Wm) Supermarkets PLC 139.00 -8.60
FTSE All-Share (638) 3295.07 -2.00 3554.45 3362.26 3381.57 3389.49 3.87 1.52 17.00 125.70 5261.44 Tobacco 7.90 Life Insurance -1.36 Industrial Eng -19.04
Dec 10 Dec 09 Mnth Ago Dec 11 Dec 10 Mnth Ago Babcock International Group PLC 989.50 -52.50 National Grid PLC 904.30 3.20
FTSE All-Share ex Inv Co (463) 3256.02 -2.04 3512.33 3323.66 3342.95 3355.44 3.91 1.53 16.65 125.79 2690.14 Tech Hardware & Eq 7.81 Health Care Eq & Srv -1.36 Oil Equipment & Serv -24.22 Bae Systems PLC 490.50 -18.00 Next PLC 7385 -555.00
FTSE All-Share ex Multinationals (573) 1149.90 -1.75 1028.08 1170.37 1177.00 1090.69 2.91 1.59 21.62 32.77 1958.21 Australia 92.40 91.69 90.32 Sweden 79.04 79.58 78.36 Media 7.59 Mobile Telecomms -4.03 Oil & Gas -24.66 Barclays PLC 211.20 -18.40 Old Mutual PLC 155.70 -43.50
FTSE Fledgling (100) 7680.33 -0.36 8284.92 7707.91 7719.77 6737.30 2.57 1.16 33.68 174.55 13834.76 Canada 86.54 86.77 88.82 Switzerland 159.63 159.41 159.40 Travel & Leisure 6.40 Health Care -4.61 Oil & Gas Producers -24.67 Barratt Developments PLC 592.50 -21.00 Pearson PLC 714.00 -68.00
FTSE Fledgling ex Inv Co (50) 10552.34 0.15 11383.01 10536.06 10538.08 8385.37 2.81 1.37 25.97 237.62 18498.63 Denmark 105.76 105.79 105.43 UK 92.44 92.42 92.84 Beverages 6.31 Pharmace & Biotech -4.96 Basic Materials -45.10 Berkeley Group Holdings (The) PLC 3498 -104.00 Persimmon PLC 1907 -37.00
FTSE All-Small (388) 3115.80 -0.95 3361.07 3145.61 3155.69 2937.14 2.96 1.46 23.18 85.21 5478.65 Japan 126.45 125.77 125.40 USA 105.44 105.44 106.00 Real Est Invest & Tr 5.14 Financials -6.14 Mining -51.41 Bg Group PLC 925.80 -99.20 Prudential PLC 1469 -36.50
FTSE All-Small ex Inv Co Index (202) 3036.55 -0.70 3275.58 3057.98 3067.89 2733.03 2.89 2.03 16.99 81.56 5533.84 New Zealand 114.66 112.85 112.48 Euro 85.93 86.11 85.05 Gas Water & Multi -6.34 Industrial Metals & -55.51 Bhp Billiton PLC 694.20 -93.50 Randgold Resources LD 4128 -161.00
FTSE AIM All-Share Index (819) 725.40 -0.84 782.50 731.52 734.56 693.12 1.46 0.83 83.23 9.14 780.19 Norway 84.63 83.98 85.55
BP PLC 338.00 -21.70 Reckitt Benckiser Group PLC 6124 -82.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 3599 -182.00 RELX PLC 1139 -44.00
Oil & Gas (18) 5685.50 -4.37 6133.05 5945.60 5981.77 6991.21 6.62 0.20 75.35 371.71 4761.96 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 774.00 -40.00 Rio Tinto PLC 1885.5 -195.50
Oil & Gas Producers (11) 5407.07 -4.44 5832.71 5658.12 5697.52 6644.82 6.65 0.16 92.60 354.65 4682.82 Bt Group PLC 460.55 -18.80 Rolls-Royce Holdings PLC 552.00 -42.50
Oil Equipment Services & Distribution (7)12871.09 -2.57 13884.29 13211.12 12955.49 16075.43 5.92 1.41 11.98 761.22 9466.16 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 1831 -76.00 Royal Bank Of Scotland Group PLC 285.50 -18.30
Basic Materials (29) 2600.15 -3.81 2804.83 2703.02 2695.02 4452.24 7.85 1.88 6.78 198.46 2549.53 Burberry Group PLC 1140 -62.00 Royal Dutch Shell PLC 1460 -139.50
Chemicals (7) 11218.18 -1.43 12101.26 11380.88 11472.24 11486.30 2.48 2.28 17.68 237.16 9644.56 Dec 11 No of US $ Day Mth YTD Total
YTD Gr Div Dec 11 No of US $ Day Mth YTD Total YTD Gr Div Capita PLC 1154 -86.00 Royal Dutch Shell PLC 1453.5 -132.00
Forestry & Paper (1) 14985.75 -3.12 16165.41 15467.65 15796.74 12141.40 2.41 3.37 12.32 360.52 15566.79 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Carnival PLC 3447 -2.00 Royal Mail PLC 445.70 -20.30
Industrial Metals & Mining (2) 692.86 -4.50 747.40 725.51 735.33 1347.09 1.66 -18.64 -3.23 11.18 604.65 FTSE Global All Cap 7748 450.71 -0.1 -1.9 -4.1 615.93
-1.9 2.5 Oil & Gas 165 311.55 0.3 0.3 -21.8 475.46 -19.0 4.2 Centrica PLC 210.90 -0.50 Rsa Insurance Group PLC 419.70 -17.00
Mining (19) 6642.85 -4.33 7165.76 6943.35 6894.36 12821.40 9.40 1.85 5.75 616.70 3410.55 FTSE Global All Cap 7118 463.51 -0.1 -2.0 -4.3 622.30
-2.1 2.5 Oil & Gas Producers 117 290.65 0.4 0.4 -19.8 451.35 -16.9 4.2 Coca-Cola Hbc AG 1438 -109.00 Sabmiller PLC 4007.5 -27.50
FTSE Global Large Cap 1420 398.46 -0.1 -2.0 -4.4 557.02
-2.0 2.7 Oil Equipment & Services 39 289.28 0.0 0.0 -30.2 403.00 -27.9 4.6 Compass Group PLC 1114 -47.00 Sage Group PLC 589.00 -22.50
Industrials (117) 4255.47 -1.47 4590.45 4318.86 4340.15 4079.18 2.63 1.20 31.58 111.53 4225.79
Construction & Materials (13) 5149.66 -1.56 5555.04 5231.33 5273.86 4025.74 2.33 -0.83 -52.13 121.45 5262.18 FTSE Global Mid Cap 1646 601.44 -0.3 -1.5 -2.6 784.69
-0.8 2.1 Basic Materials 262 353.26 -0.1 -0.1 -18.9 517.00 -16.6 3.4 Crh PLC 1880 -75.00 Sainsbury (J) PLC 235.00 -10.00
Aerospace & Defense (9) 4227.01 -1.62 4559.76 4296.56 4336.94 4618.95 2.70 0.96 38.57 113.27 4369.87 FTSE Global Small Cap 4682 626.73 0.0 -2.1 -3.9 793.84
-2.2 2.0 Chemicals 123 596.90 -0.5 -0.5 -4.3 876.16 -2.1 2.6 Diageo PLC 1806.5 -84.50 Schroders PLC 2700 -184.00
General Industrials (6) 3456.57 -0.92 3728.67 3488.72 3494.64 3026.34 3.33 1.68 17.90 112.80 3759.78 FTSE All-World 3066 263.57 -0.1 -1.9 -4.1 380.02
-1.8 2.6 Forestry & Paper 16 198.38 -0.2 -0.2 -4.7 318.56 -1.8 3.5 Direct Line Insurance Group PLC 399.00 -10.50 Severn Trent PLC 2108 -82.00
Electronic & Electrical Equipment (11) 5243.75 -1.04 5656.53 5299.05 5261.77 4788.50 2.23 2.04 21.97 110.13 4632.87 FTSE World 2551 467.82 -0.1 -1.8 -3.7 905.63
-1.4 2.6 Industrial Metals & Mining 67 253.81 0.9 0.9 -38.4 372.08 -36.9 3.5 Dixons Carphone PLC 470.60 -9.00 Shire PLC 4299 -205.00
Industrial Engineering (14) 7472.23 -1.71 8060.43 7601.85 7590.82 8670.92 3.27 1.52 20.07 243.31 8748.38 FTSE Global All Cap ex UNITED KINGDOM In 7421 463.09 -0.1 -1.9 -3.8 624.05
-1.6 2.4 Mining 56 324.88 0.9 0.9 -43.0 476.00 -40.4 6.8 Easyjet PLC 1658 -17.00 Sky PLC 1056 -58.00
Industrial Transportation (8) 3830.25 -1.27 4131.77 3879.60 3906.27 3917.90 3.96 0.94 26.90 168.06 3222.27 FTSE Global All Cap ex USA 5739 414.67 -0.5 -2.1 -7.3 601.07
-4.7 3.0 Industrials 537 300.37 -0.1 -0.1 -4.6 416.94 -2.6 2.3 Experian PLC 1155 -52.00 Smith & Nephew PLC 1073 -40.00
Support Services (56) 6517.61 -1.49 7030.67 6616.32 6648.82 6065.23 2.42 1.54 26.86 156.78 6533.97 FTSE Global All Cap ex JAPAN 6487 459.29 -0.1 -2.0 -5.1 633.18
-2.8 2.6 Construction & Materials 109 415.86 -0.4 -0.4 -3.6 604.48 -1.6 2.2 Fresnillo PLC 675.00 -27.00 Smiths Group PLC 941.00 -64.00
FTSE Developed 2116 426.80 0.0 -1.6 -2.6 587.62
-0.4 2.5 Aerospace & Defense 28 510.54 0.4 0.4 2.7 702.93 4.8 2.1 G4S PLC 214.00 -18.80 Sports Direct International PLC 586.00 -111.50
Consumer Goods (40) 17617.12 -1.44 19003.92 17874.77 18011.83 15679.19 3.11 1.72 18.64 539.35 12421.32
FTSE Developed All Cap 5739 447.49 0.0 -1.6 -2.7 609.44
-0.5 2.4 General Industrials 56 216.63 -0.1 -0.1 -0.4 322.52 2.0 2.6 Gkn PLC 284.30 -12.00 Sse PLC 1435 -7.00
Automobiles & Parts (1) 6681.18 -3.63 7207.12 6932.64 6939.69 7630.60 2.99 1.53 21.85 199.75 6144.28
FTSE Developed Large Cap 923 394.89 0.0 -1.7 -2.9 551.07
-0.6 2.6 Electronic & Electrical Equipment 69 320.96 -0.2 -0.2 -1.3 411.17 0.5 1.9 Glaxosmithkline PLC 1297.5 -21.50 St. James's Place PLC 947.00 -42.50
Beverages (6) 15087.18 -1.08 16274.83 15251.74 15357.13 13951.10 2.54 1.65 23.96 382.69 10276.24
FTSE Developed Europe Large Cap 218 330.24 -0.5 -1.9 -6.6 520.09
-3.5 3.6 Industrial Engineering 105 542.54 -0.4 -0.4 -12.3 740.63 -10.3 2.6 Glencore PLC 85.37 -1.92 Standard Chartered PLC 495.35 -29.45
Food Producers (10) 8876.72 -0.64 9575.49 8934.24 9087.33 7989.45 1.85 1.40 38.82 163.26 7427.94
FTSE Developed Europe Mid Cap 302 511.81 -0.6 0.6 2.3 732.57
4.7 2.6 Industrial Transportation 97 495.39 -0.2 -0.2 -17.0 686.17 -15.4 2.4 Hammerson PLC 586.50 -15.50 Standard Life PLC 377.30 -21.30
Household Goods & Home Construction (13)13274.72 -0.82 14319.69 13384.98 13381.16 10099.03 2.18 2.56 17.97 265.76 9014.52
FTSE Dev Europe Small Cap 715 728.06 -0.6 1.4 5.7 1015.16
8.1 2.3 Support Services 73 276.78 0.0 0.0 1.6 369.63 3.5 1.9 Hargreaves Lansdown PLC 1407 -73.00 Taylor Wimpey PLC 194.00 -4.90
Leisure Goods (2) 5568.07 0.97 6006.38 5514.42 5657.82 4964.75 4.30 1.32 17.61 238.83 4715.81
FTSE North America Large Cap 323 438.46 0.2 -1.6 -1.4 576.58
0.7 2.2 Consumer Goods 424 415.05 -0.3 -0.3 2.5 589.15 4.8 2.4 Hikma Pharmaceuticals PLC 2062 -95.00 Tesco PLC 144.35 -18.25
Personal Goods (6) 21236.42 -1.78 22908.13 21620.65 21814.10 21001.21 3.07 3.02 10.81 629.27 13686.45
FTSE North America Mid Cap 399 644.42 0.2 -2.3 -5.0 794.67
-3.6 1.8 Automobiles & Parts 101 381.37 -0.3 -0.3 -2.2 519.90 0.0 2.5 HSBC Holdings PLC 498.00 -25.30 Travis Perkins PLC 1951 -73.00
Tobacco (2) 43856.10 -2.10 47308.40 44798.71 45328.09 39340.53 4.55 1.16 18.97 1994.40 26726.90
FTSE North America Small Cap 1516 646.49 0.3 -3.4 -6.2 775.34
-4.7 1.8 Beverages 48 573.96 -0.3 -0.3 6.7 827.59 9.4 2.5 Imperial Tobacco Group PLC 3403 -148.00 Tui AG 1154 17.00
Health Care (19) 8860.51 -1.04 9558.00 8953.25 8991.97 9188.96 3.95 3.53 7.18 348.00 6460.56
FTSE North America 722 292.82 0.2 -1.7 -2.0 394.62
-0.1 2.2 Food Producers 107 553.51 -0.3 -0.3 0.3 809.21 2.4 2.2 Inmarsat PLC 1100 -9.00 Unilever PLC 2747 -46.00
Health Care Equipment & Services (7) 6720.25 -0.98 7249.26 6786.87 6785.30 6134.12 1.69 2.14 27.61 104.41 5697.86
FTSE Developed ex North America 1394 225.21 -0.4 -1.4 -3.5 350.20
-0.8 3.0 Household Goods & Home Construction 48 397.88 0.0 0.0 0.4 562.23 2.7 2.3 Intercontinental Hotels Group PLC 2495 -73.00 United Utilities Group PLC 921.00 -29.00
Pharmaceuticals & Biotechnology (12)11982.07 -1.04 12925.28 12108.09 12165.47 12577.34 4.15 3.58 6.73 498.46 7760.46
FTSE Japan Large Cap 177 323.56 -0.4 -2.4 6.1 404.24
8.1 1.9 Leisure Goods 28 132.02 0.1 0.1 4.8 168.81 5.8 1.4 International Consolidated Airlines Group S.A. 566.50 -17.50 Vodafone Group PLC 208.15 -7.40
Consumer Services (97) 4705.53 -1.40 5075.95 4772.22 4802.76 4324.97 2.39 1.64 25.54 113.20 4245.36 FTSE Japan Mid Cap 303 484.33 -0.8 0.2 13.9 584.52
15.6 1.5 Personal Goods 80 596.53 -0.4 -0.4 2.3 807.96 4.2 2.0
Food & Drug Retailers (7) 2495.81 -3.16 2692.28 2577.22 2617.65 2645.38 2.14 -1.50 -31.04 53.33 2853.97 Intertek Group PLC 2676 -177.00 Whitbread PLC 4400 -173.00
FTSE Global wi JAPAN Small Cap 781 514.37 -0.8 0.9 9.7 640.64
11.5 1.7 Tobacco 12 1204.50 -0.5 -0.5 12.2 2337.26 16.3 4.0 Intu Properties PLC 303.70 -7.30 Wolseley PLC 3718 -163.00
General Retailers (33) 2902.28 -1.29 3130.75 2940.25 2993.29 2723.70 2.42 2.24 18.48 71.50 3178.41
FTSE Japan 480 134.55 -0.5 -1.9 1.9 Health Care
7.6 188.89
9.6 172 450.20 0.4 0.4 3.6 626.60 5.5 1.9 Itv PLC 262.30 -5.60 Wpp PLC 1483 -20.00
Media (22) 7137.14 -1.38 7698.97 7236.79 7256.34 6370.69 2.86 1.62 21.50 208.30 4213.38
FTSE Asia Pacific Large Cap ex Japan 531 529.66 -0.1 -2.3 -14.0 790.39
-11.4 3.4 Health Care Equipment & Services 61 637.73 0.4 0.4 8.0 730.71 9.0 1.0 Johnson Matthey PLC 2541 -165.00
Travel & Leisure (35) 8381.59 -1.02 9041.38 8467.67 8467.34 7507.51 2.05 2.07 23.61 168.22 7633.37
FTSE Asia Pacific Mid Cap ex Japan 434 724.27 -0.2 -2.8 -10.1 1042.46
-7.9 3.0 Pharmaceuticals & Biotechnology 111 341.82 0.3 0.3 2.3 494.30 4.4 2.1
Telecommunications (7) 3827.89 -1.93 4129.22 3903.18 3930.88 3636.98 4.23 0.19 127.74 148.84 3996.79 FTSE Asia Pacific Small Cap ex Japan 1430 486.72 -0.2 -1.5 -8.9 691.28
-6.6 2.8 Consumer Services 390 390.39 -0.1 -0.1 4.3 506.92 6.0 1.7
Fixed Line Telecommunications (5) 5281.13 -1.78 5696.86 5377.05 5363.14 4586.24 2.83 1.80 19.59 106.86 4540.71
Mobile Telecommunications (2) 4813.89 -2.03 5192.84 4913.75 4982.43 4851.04 5.22 -0.44 -43.56 251.48 4502.29
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
965
2009
419.88
565.11
-0.1
-1.0
-2.4
-5.1
-13.5 665.97
-11.0 3.3 Food & Drug Retailers
-18.0 805.25
-15.7 3.3 General Retailers
54 295.51
121 534.33
-0.1
-0.3
-0.1
-0.3
-1.7 399.14
11.7 677.17
-0.1
13.5
1.8
1.5
UK STOCK MARKET TRADING DATA
Utilities (8) 8068.52 -0.84 8703.66 8137.09 8125.30 8554.36 5.03 1.36 14.62 396.42 8582.80 FTSE Emerging Large Cap 497 534.04 -1.0 -5.3 -18.3 765.61
-16.0 3.4 Media 91 295.05 0.0 0.0 -1.9 383.95 -0.2 1.8 Dec 11 Dec 10 Dec 09 Dec 08 Dec 07 Yr Ago
Electricity (3) 8217.10 -1.18 8863.94 8315.02 8280.88 9822.65 6.18 1.33 12.18 504.89 10931.09 FTSE Emerging Mid Cap 453 697.62 -1.6 -5.7 -19.0 989.21
-16.9 3.0 Travel & Leisure 124 377.12 0.4 0.4 4.7 494.38 6.5 1.7 SEAQ Bargains 4796.00 4820.00 5776.00 5457.00 3.00 3.00
Gas Water & Multiutilities (5) 7591.19 -0.76 8188.76 7649.07 7643.20 7786.21 4.74 1.37 15.40 348.95 8104.60 FTSE Emerging Small Cap 1059 604.21 -0.4 -2.5 -14.6 830.32
-12.2 3.1 Telecommunication 91 155.94 -0.4 -0.4 -6.6 274.04 -2.9 4.3 Order Book Turnover (m) 34.11 39.16 36.41 61.34 54.20 54.20
Financials (283) 4357.18 -2.20 4700.17 4455.13 4488.48 4512.78 3.77 1.87 14.16 163.46 3805.01 FTSE Emerging Europe 99 271.94 -0.3 -8.6 -12.8 398.01
-9.4 4.5 Fixed Line Telecommuniations 44 130.98 -0.3 -0.3 -4.4 251.68 -0.1 4.7 Order Book Bargains 928786.00 882812.00 884291.00 693319.00 852786.00 852786.00
Banks (9) 3538.30 -2.72 3816.84 3637.08 3638.47 4238.81 4.67 1.37 15.68 170.78 2439.06 FTSE Latin America All Cap 240 625.35 -1.1 -4.3 -30.6 920.96
-28.8 3.7 Mobile Telecommunications 47 163.63 -0.6 -0.6 -9.5 260.81 -6.6 3.6 Order Book Shares Traded (m) 1454.00 1465.00 1738.00 1800.00 1918.00 1918.00
Nonlife Insurance (10) 2782.99 -0.54 3002.06 2798.17 2803.94 2098.96 2.73 2.06 17.78 75.75 4677.11 FTSE Middle East and Africa All Cap 220 602.84 -5.1 -9.9 -21.7 898.27
-19.5 3.0 Utilities 163 231.44 -0.8 -0.8 -13.4 423.35 -10.2 4.1 Total Equity Turnover (£m) 2507.88 2541.60 0.10 0.09 0.01 0.01
Life Insurance/Assurance (11) 7552.69 -2.37 8147.23 7736.05 7901.81 7416.30 4.01 1.59 15.69 293.04 6933.45 FTSE Global wi UNITED KINGDOM All Cap In 327 330.30 -0.7 -2.1 3.9 Electricity
-8.0 521.74
-4.8 112 251.84 -0.8 -0.8 -11.2 455.78 -8.1 3.9 Total Mkt Bargains 1039586.00 992827.00 10.00 3.00 11.00 11.00
Index- Real Estate Investment & Services (21) 3034.52 -0.74 3273.39 3057.18 3059.29 2589.16 2.08 5.70 8.42 59.82 7796.44 FTSE Global wi USA All Cap 2009 503.43 0.2 -1.7 -1.1 644.49
0.8 2.1 Gas Water & Multiutilities 51 246.92 -0.7 -0.7 -17.0 463.18 -13.7 4.5 Total Shares Traded (m) 4027.00 4702.00 0.00 0.00 0.00 0.00
Real Estate Investment Trusts (25) 2892.86 -1.81 3120.59 2946.26 2970.65 2672.67 3.04 6.00 5.49 87.57 3418.04 FTSE Europe All Cap 1394 381.37 -0.5 -1.4 3.3 Financials
-4.2 582.37
-1.3 676 200.09 -0.4 -0.4 -7.3 310.44 -4.7 3.0 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 7640.48 -2.94 8241.93 7872.18 8007.21 6884.68 3.03 2.22 14.88 217.93 8292.67 FTSE Eurobloc All Cap 630 359.54 -0.5 -1.1 3.0 Banks
-2.4 555.20
0.3 243 177.72 -0.3 -0.3 -11.6 293.87 -8.8 3.5 (c) Market closed.
Equity Investment Instruments (175) 7467.49 -1.10 8055.32 7550.31 7582.23 7340.86 2.70 1.05 35.35 195.18 3923.91 FTSE RAFI All World 3000 3013 5429.72 -0.2 -2.7 -7.8 6830.26
-5.2 3.2 Nonlife Insurance 71 213.69 -0.3 -0.3 -0.2 297.22 2.0 2.3
Non Financials (355) 3815.99 -1.93 4116.38 3890.95 3910.86 3915.64 3.90 1.40 18.32 146.45 5340.61 FTSE RAFI US 1000 1004 8865.34 0.2 -2.3 -4.6 11193.07
-2.4 2.5 Life Insurance 51 200.11 -0.9 -0.9 -5.2 303.49 -2.7 2.9
Technology (20) 1460.36 -0.80 1575.32 1472.11 1470.19 1174.33 1.32 2.15 35.25 18.79 1824.96 FTSE EDHEC-Risk Efficient All-World 3066 314.25 -0.2 -1.3 2.3 Financial Services
-1.7 421.83
0.3 140 224.14 0.0 0.0 -3.2 298.17 -1.5 1.9 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1835.69 0.02 1980.20 1835.40 1820.54 1313.74 1.78 1.74 32.15 32.44 2403.19 FTSE EDHEC-Risk Efficient Developed Europe 520 278.39 -0.7 -0.1 2.7 Technology
-0.1 406.20
2.5 186 176.77 0.1 0.1 2.7 210.75 4.4 1.7 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (7) 1639.38 -1.50 1768.43 1664.39 1671.98 1436.29 0.91 2.84 38.51 14.34 1881.85 Software & Computer Services 85 309.26 0.1 0.1 13.9 354.85 15.2 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 101 130.59 0.2 0.2 -6.7 160.08 -4.7 2.4 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/ For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 6073.40 6056.73 6061.63 6033.64 6014.82 6003.08 6009.26 5957.65 5962.94 6081.76 5950.91 mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
FTSE 250 17065.18 16990.23 16990.76 16950.39 16936.35 16932.47 16939.25 16887.26 16898.81 17067.08 16877.29 (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 4530.10 4529.03 4530.25 4535.05 4524.96 4522.83 4520.51 4508.83 4501.50 4537.38 4488.48
FTSE All-Share 3355.27 3345.41 3347.60 3334.13 3325.16 3319.84 3322.71 3298.07 3300.59 3358.48 3294.94 www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Time of FTSE 100 Day's high:08:14:00 Day's Low15:01:00 FTSE 100 2010/11 High: 7103.98(27/04/2015) Low: 5898.87(24/08/2015) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:08:14:00 Day's Low15:01:00 FTSE 100 2010/11 High: 3834.45(27/04/2015) Low: 3245.99(24/08/2015)
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Arria NLG Pre 1.476 0.787 8.272L 10.915L 7L 11L - - - - - date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Digital Barriers Int 7.92 10.137 5.809L 13.174L 6.7L 20.3L - - - - - 12/11 3.50 Wey Education PLC 4.00 - 0.00 0.00 375.9
There are currently no rights offers by any companies listed on the LSE. Edinburgh Worldwide Investment Trust Pre 21.792 4.671L 0.18L 0.14 - 1.5 - - 2 11/17 260.00 AIM FARN Faron Pharmaceuticals Oy 260.00 -17.50 295.00 265.00 6009.0
Electronic Data Processing Pre 5.157 5.508 0.347 0.401 2.41 3.21 3 2 Apr 6 5 2 11/17 10.00 SCGL Sealand Capital Galaxy Ltd 12.50 - 13.90 13.90 0.0
Finsbury Growth & Income Trust Pre 59.312 36.3 13.5 12.6 6.6 6.2 Nov 12 12.1 11.3 11/13 240.00 SCT Softcat PLC 300.00 1.00 307.00 240.00 59221.8
Gresham House Strategic Int 2.891 1.852 0.549L 0.73 14.89L 0.17 - - - - - 11/10 5.00 SEN Senterra Energy PLC 4.38 0.38 5.59 4.06 118.1
Hargreave Hale AIM VCT 1 Pre 0.24 0.23 0.177L 0.137L 0.4L 0.41L 2.25 2.5 Jan 20 4 4.25 11/09 195.00 GYM Gym Group (The) PLC 201.00 1.00 216.75 195.00 25749.2
Polar Capital Holdings Int 39.862 41.803 11.692 11.592 10.44 10.55 5.5 5.5 Jan 15 25 30.5 11/06 180.00 MCS McCarthy & Stone PLC 236.00 2.50 240.75 180.00 126806.1
Tricor Int - 1.559 0.365L 1.016L 0.24L 0.77L - - - - - 11/06 100.00 RGL Regional REIT Ltd 100.00 0.00 104.00 98.25 27421.7
Unicorn AIM VCT Pre 1.885 1.232 0.823 0.35 1.11 0.57 6.25 6 Feb 19 6.25 6
Work Group Pre 7.575 10.435 3.449L 1.345L 14.19L 6.26L - - - - -

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Monday 14 December 2015 ★ FINANCIAL TIMES 21

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AT&T 33.17 -0.94 36.45 30.97 5.69 34.82 204061.84 Lockheed♦ 217.20 -1.19 227.91 181.91 2.77 19.19 66744.58
ANZ♦ 26.22 -1.59 37.25 25.01 9.65 10.42 54937.7 Nokia 6.32 -0.49 7.87 4.91 2.26 -42.61 25546.7 AstellasPh 1691 -64.00 2047 1514.5 1.92 21.62 31054.29 AtlasCpcoB 194.40 -16.80 270.00 173.70 1.57 16.64 8945.53 AutomData♦ 83.33 -4.10 90.67 64.29 2.36 27.62 38771.23 Lowes 75.01 -1.75 78.13 64.07 1.34 24.04 68642
BHPBilltn 17.20 -0.99 34.29 16.71 13.80 19.62 39812.25 SampoA 45.12 -1.43 49.40 37.01 4.41 14.70 27726.76 Bridgestne 4301 -119.00 5182 3753.5 2.83 12.29 28905.67 Ericsson 76.50 -5.10 120.00 76.30 4.39 24.65 29814.97 Avago Tech 144.42 -3.14 150.50 95.18 0.98 39.27 39859.74 Lyondell 85.58 -10.75 107.32 70.06 3.47 9.14 38463.4
CmwBkAu 78.95 -2.55 96.69 70.15 7.72 14.47 97158.03 France (€) Canon 3709 -63.00 4539 3402 4.38 18.22 40888.77 H&M 298.20 -18.10 368.50 295.20 3.23 23.12 58200.42 BakerHu♦ 47.80 -4.82 70.45 44.11 1.43 -76.31 20844.94 Marathon Ptl 49.62 -6.01 60.38 37.62 2.17 7.81 26446.17
CSL 99.89 0.75 102.43 81.48 1.44 25.44 33465.24 Airbus Grpe 62.28 -1.73 68.50 39.64 1.96 16.88 53976.04 CntJpRwy 20955 -835.00 24800 16600 0.58 13.88 35679.88 Investor 302.00 -23.90 363.40 265.10 3.03 14.44 27131.4 BankAm♦ 16.73 -1.07 18.48 14.60 1.20 12.48 174200.78 Marsh&M 54.89 -1.97 59.99 50.90 2.67 19.91 28633.27
NatAusBk♦ 28.60 -1.44 39.71 27.51 9.61 11.96 54129.17 AirLiquide 102.95 -2.50 123.95 93.01 2.43 20.57 38954.46 Denso 5792 -212.00 6548 4945 2.15 17.55 42323.64 Nordea Bk 89.30 -4.60 115.50 85.15 6.60 10.23 42648.42 Baxter♦ 36.84 -0.70 43.44 32.18 4.57 10.99 20152.13 MasterCard 94.83 -3.87 101.76 74.61 0.68 29.05 104335.15
Telstra 5.20 -0.31 6.74 5.06 8.50 14.69 45817.36 AXA 24.65 -0.60 26.02 17.56 3.78 12.05 66816.63 EastJpRwy 11335 -405.00 12815 8553 1.12 20.71 36773.05 SEB 83.80 -6.35 111.50 83.70 5.76 10.29 21444.17 BB & T 36.81 -2.14 41.90 34.24 2.78 13.58 28717.33 McDonald's♦ 116.08 -0.12 117.51 87.50 2.94 25.03 106588.12
Wesfarmers 37.87 -1.04 46.95 36.65 8.99 17.02 30735.39 BNP Parib 51.29 -2.58 61.00 43.14 2.98 8.73 70289.33 Fanuc 21475-1080.00 28575 17930 3.66 20.19 36555.02 SvnskaHn 108.40 -6.90 426.00 108.40 3.90 13.92 23926.99 BectonDick♦ 151.68 -3.13 155.53 128.87 1.59 45.08 31759.61 McGraw Hill 92.67 -5.66 109.13 84.64 1.40-251.33 25048.7
Westpc♦ 31.47 -1.44 40.07 29.10 8.16 13.29 75364.94 ChristianDior♦ 159.35 -10.90 195.35 127.90 2.09 11.41 31845.3 FastRetail 45940-2270.00 61970 40610 0.75 43.09 40277.92 Swedbank 178.00 -10.40 223.90 178.00 6.48 12.43 23761.3 BerkshHat 195756.87-8743.13 229300 190007 - 14.07 158784.07 McKesson♦ 190.21 -0.33 243.61 160.10 0.53 21.29 43769.05
Woolworths 23.01 -0.79 34.71 22.93 7.62 13.10 21076.34 Cred Agr 10.23 -0.87 14.49 9.82 3.49 21.44 29692.22 Fuji Hvy Ind 5005 -148.00 5223 3669 2.21 11.25 32386.19 TeliaSonera 40.32 -1.21 55.85 39.89 7.56 11.86 20588.21 Biogen 283.46 -0.99 480.18 254.00 - 18.43 63184.12 Medtronic 76.65 -1.49 79.50 55.54 1.76 44.54 107781.84
Belgium (€) Danone 61.39 -1.36 67.74 51.50 2.39 41.35 44216.08 Hitachi 717.60 -22.50 929.10 585.70 1.47 13.00 28668.77 Volvo 76.90 -6.25 120.50 76.35 3.96 16.17 14717.35 BkNYMeln 40.77 -3.29 45.45 35.63 1.68 17.56 44559.68 Merck♦ 52.15 -1.49 63.62 45.69 3.47 13.77 145683.27
AnBshInBv 112.40 -4.00 124.20 85.63 2.71 22.13 198788.59 EDF♦ 13.09 -0.25 24.89 12.40 9.36 7.02 26774.93 HondaMtr 3914 -175.00 4499 3382.5 2.28 12.68 58601.74 Switzerland (SFr) BlackRock♦ 322.78 -37.98 382.84 275.00 2.64 16.52 52933.51 Metlife 47.12 -3.95 58.23 44.49 3.09 9.09 52379.84
KBC Grp 54.47 -2.40 66.00 42.77 3.74 8.81 25025.31 Engie SA 15.84 -0.14 20.08 13.80 6.19 43.37 42407.4 JapanTob 4368 -126.00 4848 3101 2.37 18.71 72207.3 ABB 17.67 -0.93 22.16 16.49 - 16.57 41581.38 Boeing 144.62 -3.88 158.83 115.14 2.40 18.10 96893.03 Microsoft 54.06 -1.85 56.23 39.72 2.30 35.89 431826.58
Esslr Intl 113.85 -2.40 125.15 82.75 0.88 40.56 27063.49 KDDI 2948.5 -186.50 8550 2519 2.06 15.21 65579.13 CredSuisse 20.33 -1.72 28.94 18.57 3.42 9.44 40454.96 BrisMySq 67.62 -1.49 70.54 51.82 2.20 63.60 112809.52 Mnstr Bvrg 149.74 -6.96 160.50 104.48 - 51.68 30355.66
Brazil (R$)
Hermes Intl 314.60 -14.75 365.55 267.40 0.92 36.29 36523.34 Keyence 65310-1000.00 70100 50700 0.32 31.64 32822.03 Nestle 72.50 -2.70 77.00 64.55 3.09 15.78 235001.28 Broadcom♦ 57.34 -0.18 58.48 40.21 0.95 24.81 32167.74 MondelezInt 42.73 -1.77 48.58 33.97 1.46 8.31 67905.13
Ambev 18.28 -0.26 20.46 15.00 8.83 23.11 74058.73
LOreal 154.45 -4.80 181.30 127.70 1.71 30.03 95066.71 MitsbCp 2031 -79.50 2837 1887.5 2.75 10.77 26692.95 Novartis 83.55 -1.70 103.20 82.25 3.23 24.20 227380.44 CapOne 73.68 -5.69 92.10 67.73 1.91 10.31 39201.09 Monsanto 93.63 -4.22 126.00 81.22 2.07 19.93 41181.95
Bradesco 23.27 -1.08 32.40 22.84 4.13 8.27 15141.24
LVMH 144.95 -7.30 176.60 123.50 2.16 13.05 81003.86 MitsubEst 2507.5 -136.00 2975 2321 0.61 45.01 28816.97 Richemont 70.55 -4.75 91.75 66.40 2.29 22.52 37439.23 CardinalHlth 85.90 -2.54 91.91 74.76 1.71 21.41 28259.48 MorganStly 32.08 -3.24 41.04 30.15 1.57 19.64 62114.06
Cielo 36.23 0.33 46.27 30.48 1.86 17.63 17618.9
Nmrcble-SFR 34.47 -3.84 60.01 33.74 - -41.58 16612.39 MitsubishiEle 1320 -69.50 1718 1063 2.08 12.16 23426.91 Roche 266.70 -5.70 292.90 238.80 3.05 25.23 190487.95 Carnival 50.69 0.00 54.59 42.51 2.05 28.48 29912.7 MylanNV 52.56 1.15 76.69 37.59 - 29.21 25846.22
ItauHldFin 26.09 0.29 32.66 23.81 1.93 5.94 20491.1
Orange 14.92 -0.54 16.98 12.21 3.94 40.04 43447.04 MitsuiFud 3072 -105.00 3879 2951 0.92 24.88 25173.84 Swiss Re 95.45 -2.75 99.75 74.95 4.68 37.65 35972.12 Caterpillar 65.43 -4.55 94.66 62.99 4.41 13.45 38095.56 Netflix 118.91 -12.02 133.27 45.08 - 316.28 50820.74
Petrobras 8.85 -0.28 16.26 7.66 - -3.39 16977.43
PernodRic 102.00 -2.10 117.75 87.90 1.58 32.12 29772.15 MitUFJFin 775.90 -37.60 936.80 604.00 2.35 6.95 90867.55 Swisscom 476.20 -20.10 580.50 474.40 4.67 17.27 25078.11 CBS♦ 46.84 -3.17 63.95 38.51 1.29 15.06 20314.64 NextEraE♦ 97.41 -0.73 112.64 93.74 3.13 13.91 44860.8
Vale 12.21 -0.14 27.89 11.25 19.60 -5.22 10125.23
Renault 87.84 -5.01 100.25 55.68 2.12 9.68 28566.04 Mizuho Fin 243.70 -7.70 280.40 191.00 3.23 7.44 50099.29 Syngent 376.00 6.60 435.20 280.00 2.96 25.11 35528.45 Celgene 108.36 -2.00 140.72 92.98 - 54.07 85662.93 Nike♦ 126.29 -6.04 135.30 90.69 0.88 32.27 85212.39
Canada (C$) Murata Mfg 19295 125.00 22220 12430 1.05 18.76 35925.62 CharlesSch 31.77 -2.74 35.72 25.43 0.76 31.87 41825.95 NorfolkS 89.44 -2.62 112.22 72.10 2.63 16.10 26704.08
Safran 61.98 -3.00 72.45 47.75 1.90 -19.19 28424.45 UBS 18.21 -1.25 22.57 13.58 4.16 11.13 71264.32
BCE♦ 53.99 -3.03 60.20 50.92 4.88 17.26 33477.16 NipponTT 4590 -140.00 5066 3011 2.10 15.97 79534.25 ChevrnTx 86.44 -3.27 114.45 69.58 4.97 18.69 162683.25 Northrop♦ 186.02 -1.93 193.99 140.52 1.62 17.87 33926.89
Sanofi 76.42 -2.84 101.10 69.77 3.66 21.29 109723.79 Zurich Fin 250.00 -8.20 334.60 232.60 - 12.35 38225.82
BkMontrl 77.23 -2.47 82.91 64.01 4.33 11.39 36208.02 Nissan Mt 1263.5 -31.50 1350 963.10 3.01 9.56 47211.82 Cigna 140.08 -0.35 170.68 99.88 0.03 17.08 36088.52 NXP 83.28 -7.17 114.00 70.35 - 28.64 20965.86
Sant Gbn 38.55 -1.27 44.84 31.83 1.58 26.38 23776.03 Taiwan (NT$)
BkNvaS 56.08 -3.36 67.72 52.60 4.97 9.71 49228.36 Nomura 714.00 -34.90 909.20 609.30 3.27 9.89 22559.08 Cisco 26.16 -1.32 30.31 23.03 3.09 14.23 133079.92 Occid Pet♦ 66.03 -5.69 83.74 63.60 4.47 -8.31 50429.48
Schneider 53.25 -2.24 75.29 48.57 3.53 18.79 34409.24 Chunghwa Telecom 98.00 -0.70 101.00 91.20 4.96 19.14 23169.24
Brookfield♦ 43.42 -2.52 48.64 36.35 1.46 11.27 31079.38 Nppn Stl 2408 -144.00 3505 2122.5 2.74 9.75 18914.52 Citigroup 51.11 -3.98 60.95 46.60 0.24 11.47 152256.2 Oracle 37.21 -1.95 46.71 35.14 1.44 17.69 158686.82
SocGen 40.69 -3.03 48.77 31.85 3.01 10.98 36070.79 HonHaiPrc 83.10 -1.60 99.70 77.90 4.58 8.66 39605.68
CanadPcR 169.77 -10.38 245.05 168.50 0.85 18.41 18932.73 NTTDCMo 2367 -85.50 2873.5 1731 3.00 19.49 79935.72 CME Grp♦ 92.15 -7.52 100.87 83.43 2.15 24.54 31168.19 Pepsico♦ 97.78 -3.28 103.44 76.48 2.79 28.88 142450.87
Total 41.80 -1.66 50.30 36.92 6.06 112.38 112095.56 TaiwanSem 139.50 -3.00 155.00 112.50 3.23 11.88 110242.76
CanImp 92.12 -5.69 102.90 83.10 4.82 10.06 26702.07 Panasonic 1280.5 -110.50 1853.5 1177.5 1.29 89.25 25963.02 Coca-Cola♦ 42.27 -1.02 43.85 36.56 3.08 27.00 183831.6 Perrigo♦ 147.19 -0.50 215.73 140.40 0.33 145.15 21548.92
UnibailR 227.05 -5.55 262.00 193.05 4.21 13.15 24629.49
CanNatRs♦ 28.99 -1.71 42.46 25.01 3.24 71.77 23148.92 Seven & I 5448 -125.00 5998 4117.5 1.36 28.09 39916.82 Thailand (THB) Cognizant 58.30 -4.66 69.80 50.17 - 22.78 35535.56 Pfizer 32.06 -0.74 36.46 28.47 3.45 23.98 197414.9
Vinci 57.63 -1.41 62.60 39.65 3.01 16.78 38013.58
CanNatRy♦ 72.47 -3.67 88.89 69.90 1.68 16.62 41912.36 ShnEtsuCh 6809 -133.00 8320 5801 1.56 20.76 24318.84 PTT Explor 220.00 -30.00 382.00 220.00 4.99 -66.25 17440.62 ColgtPlm 65.21 -1.13 71.56 50.84 2.28 24.02 58488.29 Phillips66 82.78 -7.42 94.12 57.33 2.57 9.62 44158.19
Vivendi 19.03 -0.58 24.83 18.99 10.72-216.66 28615.01
Enbridge 41.52 -3.58 66.14 41.33 4.32-104.27 26162.97 Softbank 6262 -309.00 7827 5370 0.65 13.14 62144.36 United Arab Emirates (Dhs) Comcast 57.97 -2.78 64.99 50.01 1.69 18.08 121418.7 PhilMorris 86.32 -3.38 90.08 75.27 4.68 18.47 133735.2
GtWesLif♦ 34.57 -1.18 37.70 30.42 3.82 12.29 25048.75 Germany (€)
Sony 3041 -126.00 3970 2315 0.75 36.10 31726.38 Emirtestele 16.05 -0.45 16.50 9.41 4.01 17.36 34548.57 ConocPhil 48.13 -3.06 71.37 41.10 6.11 -58.47 59423.32 PNCFin 92.37 -4.82 100.52 81.84 2.15 12.38 47840.3
ImpOil 39.75 -2.20 55.37 39.59 1.23 19.47 24581.98 Allianz 158.35 -4.00 170.15 129.35 4.41 10.99 79580.74
SumitomoF 4659 -159.00 5770 3902 3.38 12.02 54453.74 United Kingdom (p) Corning 18.68 0.65 25.16 15.42 2.47 12.16 22098.15 PPG Inds 98.73 -7.23 118.95 82.93 1.41 22.99 26584.95
Manulife 20.47 -1.84 24.20 18.91 3.26 15.77 29441.53 BASF 68.86 -3.50 97.22 63.00 3.99 13.25 69552.03
Takeda Ph 5829 -243.00 6657 4821 3.13 -29.51 38071.07 AscBrFd♦ 3403 -82.00 3606 2705.75 1.00 47.69 40988.75 Costco 160.02 -6.78 169.73 117.03 0.93 30.13 70326.81 Praxair♦ 105.30 -4.98 132.95 98.55 2.67 21.36 29994.23
Potash 23.84 -1.50 47.10 23.81 8.43 9.82 14524.72 Bayer 112.10 -4.35 146.45 106.80 2.05 24.42 101943
TokioMarine 4573 -118.00 5504 3703 2.39 17.96 28632.96 AstraZen 4330 -112.00 4931.68 3746 4.29 48.91 83262.84 CrownCstl 84.82 -0.29 89.44 74.45 3.88 55.08 28310.48 Prec Cast♦ 231.87 -0.24 242.96 186.17 0.05 24.25 31900.94
RylBkC 72.99 -3.60 81.53 68.05 4.35 10.53 79084.5 BMW 94.11 -4.06 123.75 72.05 3.14 10.77 62302.07
Toyota 7685 -142.00 8783 6650 2.97 10.38 212030.5 Aviva 490.60 -16.90 578.68 428.40 3.69 12.84 30199.68 CSX♦ 25.72 -1.14 37.67 24.47 2.66 12.73 25075.58 Priceline 1285.33 -15.15 1476.52 990.69 - 26.73 63988.72
Suncor En♦ 35.22 -0.81 40.93 30.89 2.45 517.30 37145.73 Continental 214.20 -9.35 234.25 161.20 1.55 15.79 47112.5
Mexico (Mex$) Barclays 211.20 -18.40 289.90 209.38 3.08 0.71 53986.04 CVS 93.24 -2.22 113.65 81.37 1.43 20.86 103246.25 ProctGmbl 77.78 -0.05 93.89 65.02 3.37 25.87 211606.15
ThmReut♦ 52.40 -1.75 55.92 44.56 3.51 15.12 29359.67 Daimler 74.63 -3.98 96.07 62.06 3.35 10.14 87802.1
AmerMvl 12.60 -0.57 17.37 12.40 2.04 22.34 30816.34 BG 925.80 -99.20 1301.62 780.55 2.06 -17.88 48142.63 Danaher 93.02 -3.51 97.62 81.25 0.55 25.73 63745.24 Prudntl♦ 80.69 -6.03 92.60 73.19 2.89 10.48 36229.81
TntoDom 53.30 -1.47 56.48 47.75 3.87 12.26 72183.73 Deut Bank 21.24 -1.96 33.42 21.14 3.60 -6.83 32216.51
FEMSA UBD 157.79 -0.53 169.74 119.19 0.72 29.86 32483.46 BP♦ 338.00 -21.70 499.25 252.55 7.96 -12.35 94192.66 Deere 77.16 -2.43 98.23 71.85 3.03 12.14 25321.31 PublStor♦ 241.97 0.07 246.82 178.42 2.57 40.40 41835.62
TrnCan 44.10 2.33 59.50 40.58 4.75 18.21 22812.68 Deut Tlkm 15.89 -0.31 17.63 12.40 3.21 32.15 80472.27
WalMrtMex 42.60 -0.60 47.00 28.26 1.31 31.66 42860.14 BrAmTob 3599 -182.00 3931.5 3231.5 4.12 16.71 102078.65 Delphi 82.00 -5.85 90.57 66.10 1.22 17.20 22967.23 Qualcomm♦ 47.46 -4.88 75.72 47.34 3.81 14.67 71336.84
ValeantPh 128.12 0.71 347.84 92.65 - 53.19 31893.62 DeutsPost 24.50 -1.07 31.19 22.93 - 20.10 32632.37
BSkyB 1056 -58.00 1180 857.50 3.06 13.50 27618.52 Delta 49.28 -0.50 52.00 34.61 0.83 14.14 38757.42 Raytheon 126.20 1.91 128.94 95.32 2.08 18.56 37998.57
E.ON 8.16 -0.59 14.88 7.08 1.75 -1.73 17960.46 Netherlands (€)
China (HK$) BT 460.55 -18.80 502.60 385.60 2.48 17.36 58619.34 DirectTV 93.55 - 95.51 82.04 - 16.82 47176.52 Regen Pharm 534.51 -24.15 605.93 383.87 - 105.19 54379.19
Fresenius Med 75.32 -0.43 83.17 57.70 1.04 23.97 25768.55 Altice 10.59 -1.83 47.73 10.51 - 185.92 9563.66
AgricBkCh 2.89 -0.13 4.55 2.87 7.83 4.29 11461.89 Compass 1114 -47.00 1223.36 963.00 2.43 21.63 27879.54 DiscFinServ 52.75 -3.65 66.73 50.20 1.98 10.83 22549.77 ReynoldsAm♦ 44.56 -2.20 49.56 31.35 3.08 16.72 63680.76
Fresenius SE 63.26 -1.43 70.00 40.85 0.71 27.04 37909.88 ASML Hld 79.90 -4.04 104.85 70.25 0.89 24.31 38075.15
Bk China 3.33 -0.18 5.68 3.25 7.10 4.85 35928.31 Diageo 1806.5 -84.50 2055 1592.5 2.96 19.10 69135.05 Disney♦ 108.04 -6.20 122.08 90.00 1.68 21.93 178609.34 Salesforce 76.87 -5.27 82.90 53.75 - -581.74 51041.68
HenkelKgaA 85.09 -3.90 99.44 75.76 1.55 20.44 24309.97 Heineken 79.05 -1.10 85.90 56.14 1.36 22.89 50072.59
BkofComm 5.32 -0.25 8.61 5.17 6.31 4.83 24032.14 GlaxoSmh♦ 1297.5 -21.50 1645 1227.5 6.17 6.42 96078.08 DominRes♦ 64.89 -1.71 80.89 64.54 3.94 21.40 38631.2 Schlmbrg♦ 69.82 -4.89 95.13 66.57 2.73 26.27 88050.26
Linde 130.35 -7.35 195.55 129.85 2.46 20.83 26624.06 ING 12.08 -0.53 16.00 9.68 - 26.17 51407.12
BOE Tech 2.26 0.04 4.78 1.17 1.71 31.63 58.01 Glencore 85.37 -1.92 318.46 66.67 13.41-198.53 18696.75 DowChem 53.37 0.06 57.10 35.11 3.16 14.32 61807.9 Shrwin-Will 261.88 -10.54 294.35 218.27 0.98 24.98 24381.16
MuenchRkv 183.25 -3.05 206.50 154.20 4.31 9.68 33622.36 Unilever 38.71 -0.95 42.84 30.28 2.93 23.32 72994.83
Ch Coms Cons 8.04 -0.86 17.00 7.73 2.99 7.17 4592.87 HSBC 498.00 -25.30 674.57 478.35 6.73 9.82 149126.62 DukeEner♦ 67.84 0.80 89.97 65.50 4.75 19.62 46696.34 SimonProp 184.60 -2.76 208.14 170.99 3.13 34.37 57118.58
SAP 70.55 -1.21 75.75 53.01 1.59 26.81 95311.95 Norway (Kr)
Ch Evrbrght 3.44 -0.23 5.65 3.22 6.73 4.46 3048.62 ImpTob 3403 -148.00 3665 2680 3.76 17.04 49637.03 DuPont♦ 70.44 2.69 76.61 47.11 2.58 20.14 61734.11 SouthCpr 24.90 -1.89 33.31 23.41 1.69 19.45 19555.87
Siemens 87.75 -4.34 106.35 77.91 3.69 12.94 85015.23 DNB 105.90 -6.70 143.00 100.90 3.84 7.29 19837.81
Ch Rail Cons 9.79 -0.65 17.70 8.10 1.91 8.41 2622.65 LlydsBkg 70.01 -3.00 89.35 69.90 2.14 41.75 76110.64 Eaton 50.87 -5.18 73.82 49.21 4.23 11.73 23542.64 Starbucks 59.82 -1.93 64.00 39.22 1.07 32.69 88820.74
Volkswgn 137.60 0.30 254.50 95.00 3.56 10.72 44652.56 Statoil 121.00 -6.10 161.70 113.90 6.09 -10.10 44373.34
Ch Rail Gp 5.77 -0.77 12.30 5.50 1.68 9.54 3132.23 Natl Grid♦ 904.30 3.20 954.00 806.40 4.74 15.76 51508.19 eBay 27.97 -1.39 29.83 22.11 - 11.25 33576.29 StateSt 66.12 -7.57 81.26 63.97 1.94 15.41 26678.5
ChConstBk 5.16 -0.24 7.98 5.02 7.25 4.58 160060.23 Hong Kong (HK$) Telenor 148.60 1.90 186.10 143.70 2.62 35.49 25660.34 Ecolab♦ 112.39 -6.84 122.48 97.78 1.18 29.99 33189.16 Stryker 92.20 -2.14 105.34 89.81 1.50 29.80 34623.15
Prudential 1469 -36.50 1761.5 1045.99 2.51 14.95 57476.01
China Vanke RMB 19.90 0.75 21.36 10.93 2.56 13.41 29961.98 AIA 46.60 -1.80 58.20 38.85 0.93 21.54 72440.46 Qatar (QR) EMC 25.91 -0.01 30.92 22.66 1.78 21.62 50235.28 Sychrony Fin 29.97 -2.06 36.40 27.92 - 11.34 24989.76
RBS 285.50 -18.30 414.00 284.40 - -12.80 50286.14
ChinaCitic 4.75 -0.30 7.40 4.36 - 4.41 9120.68 BOC Hold 23.25 -0.90 33.70 22.30 4.66 9.82 31716.12 QatarNtBk 163.00 -2.40 216.00 158.20 4.61 10.20 31322.42 Emerson 45.48 -3.69 63.41 42.21 4.15 11.30 29769.26 Target 71.84 -2.06 85.81 68.15 2.91 16.32 44257.15
ReckittB 6124 -82.00 6450 4895 2.27 26.02 65965.16
ChinaLife 24.40 -2.35 41.00 23.40 2.01 14.55 23426.01 Ch OSLnd&Inv 25.75 -1.60 34.05 20.70 2.07 7.33 32760.2 EOG Res 74.89 -5.60 101.36 68.15 0.90 -10.71 41167.57 TE Connect 63.00 -3.41 73.73 54.32 1.98 20.84 24337.27
Russia (RUB) RELX 1139 -44.00 1232 988.50 2.28 26.16 35648.37
ChinaMBank 17.50 -0.78 26.85 16.40 4.76 6.16 10365.8 ChngKng 51.15 -1.75 77.55 50.10 - 11.14 25472.07 EquityResTP 77.55 -2.11 82.53 61.90 2.79 33.48 28248.51 Telsa Mtrs 217.02 -13.36 286.65 181.40 - -40.53 28419.06
Gzprm neft 133.80 -3.90 166.94 113.73 6.52 6.61 45395.38 RioTinto 1885.5 -195.50 3280 1871 7.24 18.76 39488.39
ChinaMob 89.60 -0.50 118.00 85.00 3.14 13.94 236706.21 Citic Ltd 13.60 -0.44 16.40 11.64 1.53 6.64 51044.98 Exelon 25.94 -0.77 38.93 25.88 4.80 11.48 23853.5 TexasInstr 56.21 -2.67 59.99 43.49 2.43 19.81 57020.1
Lukoil 2450 -39.90 3297.7 2053.6 7.58 20.30 29865.17 RollsRoyce 552.00 -42.50 1061 504.50 4.18 -40.59 15441.86
ChinaPcIns 29.85 -3.60 47.10 24.80 2.03 14.43 10688.62 Citic Secs 16.98 -1.46 40.50 12.82 2.06 7.50 4991.38 ExpScripts 85.00 -1.65 94.61 68.06 - 26.27 57483.46 TheTrvelers♦ 109.76 -4.30 116.48 95.21 2.12 9.71 33391.06
MmcNrlskNckl 8900 49.00 12247 7962 16.12 10.33 20184.3 RylDShlA♦ 1453.5 -132.00 2239.5 1453.5 8.64 87.86 87171.54
ChMinsheng 7.19 -0.39 11.88 6.70 3.20 4.59 6432.14 CK Hutchison 101.30 -2.00 174.90 97.50 3.49 4.13 50446.16 ExxonMb 74.34 -4.52 95.18 66.55 3.84 15.63 309472.85 ThrmoFshr♦ 134.20 -2.87 141.25 117.10 0.45 27.17 53558.91
Novatek 580.90 -3.40 646.30 398.50 10.78 49.56 25277.79 SABMill 4007.5 -27.50 4090 2773 1.86 33.20 98765.03
ChMrchSecs RMB 21.36 -0.92 40.00 13.85 2.00 12.02 15893.03 CNOOC 7.94 -0.98 13.78 7.41 6.92 7.10 45738.64 Facebook 102.12 -4.06 110.65 72.00 - 102.65 230764.29 TimeWrnr♦ 65.47 -5.14 91.34 65.25 2.10 14.97 53396.12
Rosneft 244.85 -6.60 294.20 183.95 3.58 6.18 37189.75 Shire 4299 -205.00 5870 4275 0.35 12.69 38747.15
Chna Utd Coms RMB 6.04 -0.37 10.74 4.27 1.14 40.25 19833.02 HangSeng 143.80 1.30 162.10 125.00 3.77 10.64 35471.41 Fedex♦ 144.26 -11.21 185.19 130.01 0.58 38.37 40736.06 TimeWrnrC 180.50 -4.69 194.22 134.21 2.09 26.82 51117.16
Sberbank 98.15 -4.90 110.70 47.21 - 6.43 30365.06 StandCh 495.35 -29.45 1166 491.00 10.35 11.58 24527.91
ChShenEgy 11.70 -0.96 24.40 11.30 7.75 8.01 5130.4 HK Exc&Clr 194.20 -12.60 311.40 168.10 1.98 34.39 30281.43 FordMtr 13.64 -0.56 16.74 10.44 4.23 11.39 53165.69 TJX Cos 70.56 -0.43 76.93 63.53 1.08 21.83 47241.98
Surgutneftegas 34.03 -0.13 39.80 21.82 - 1.20 17423.57 Tesco 144.35 -18.25 252.52 143.34 0.80 -2.08 17879.46
ChShpbldng RMB 9.41 -0.95 20.19 7.73 0.41-563.59 26177.53 MTR 36.40 -0.30 40.00 30.75 2.79 13.82 27507.58 Franklin 36.18 -4.96 57.64 35.92 1.67 10.95 21761.89 T-MobileUS 36.00 0.55 43.43 24.26 - 59.34 29377.35
Saudi Arabia (SR) Vodafone♦ 208.15 -7.40 258.00 150.00 5.39 -38.98 84094.83
ChStConEng RMB 6.22 -0.49 12.52 4.88 2.82 7.81 28809.88 SandsCh 25.80 -1.50 41.30 22.85 7.46 14.53 26860.75 GenDyn 137.84 -6.00 153.76 130.91 2.41 15.46 43575.11 UnionPac♦ 77.28 -1.03 124.52 74.78 2.79 13.29 66006.44
AlRajhiBnk 48.30 -1.92 69.00 47.70 3.87 12.22 20918.84 WPP 1483 -20.00 1616 1271 2.58 15.33 29212.48
ChUncHK 9.13 -0.38 16.00 9.03 2.72 19.18 28209.18 SHK Props 93.90 -3.20 137.60 93.25 2.47 8.84 35054 GenElectric 30.26 -0.23 30.99 19.37 3.05 58.41 305905.57 UPS B 97.46 -5.80 114.40 93.64 2.95 22.28 67846.06
Tencent 147.60 -6.80 171.00 104.50 0.24 40.72 179069.94 Natnlcombnk 51.50 -1.75 72.75 48.80 - 11.66 27378.36 United States of America ($)
CNNC Intl RMB 9.45 -0.47 14.38 4.07 - 26.06 5696.07 GenMills 58.10 -0.42 59.87 47.43 2.89 27.75 34725.65 USBancorp 42.22 -2.12 46.26 38.81 2.38 13.32 73850.26
SaudiBasic 87.45 0.04 110.50 70.25 5.88 11.09 69922.71 21stC Fox A 27.46 -1.88 39.27 22.81 1.10 7.12 32142.99
CSR♦ 9.49 -1.05 20.70 7.80 - 20.87 5352.06 India (Rs) GenMotors 34.55 -1.70 39.00 24.62 3.84 12.62 53765.91 UtdHlthcre♦ 115.98 -1.76 126.21 95.00 1.52 18.32 110541.52
SaudiTelec 67.23 -0.77 73.25 52.75 5.96 13.73 35836.88 3M♦ 154.83 -3.39 170.50 134.00 2.55 19.95 95330.83
Daqin RMB 8.59 -0.50 15.15 7.88 5.70 8.86 19783.09 Bhartiartl 309.55 -11.75 452.45 307.50 0.73 20.96 18504.48 GileadSci 100.03 -4.04 123.37 85.95 0.86 9.15 144161.25 UtdTech 93.30 -2.43 124.45 85.50 2.70 14.59 82759.05
Singapore (S$) AbbottLb 44.36 -0.94 51.74 39.00 2.13 26.25 66172.69
Gree Elec Apl 0.25 0.00 0.45 0.13 - -2.73 385.76 HDFC Bk 1046.35 -12.55 1128 916.00 0.78 23.54 39478.61 GoldmSchs♦ 176.56 -13.43 218.77 167.49 1.42 11.55 75309.22 ValeroEngy♦ 67.51 -3.88 73.88 43.45 2.19 7.47 32506.3
DBS 16.41 -0.21 21.50 16.00 3.65 12.45 29058.28 Abbvie 54.04 -3.14 71.60 45.45 3.59 31.12 88341.72
GuosenSec RMB 18.80 -1.00 34.94 7.00 1.09 11.17 23881.19 Hind Unilevr 822.10 7.15 981.00 744.50 1.80 37.24 26602.63 Halliburton♦ 36.96 -0.94 50.20 30.93 1.96 119.56 31630.86 Verizon 44.82 -0.89 50.86 38.06 4.96 17.89 182366.89
JardnMt US$ 47.17 -2.67 67.88 45.02 2.97 11.34 33130.06 Accenture 105.30 -3.80 109.86 81.66 1.92 23.66 84895.32
HaitongSecs 12.56 -1.02 27.90 10.00 2.47 7.66 5525.31 HsngDevFin 1174.75 3.15 1402.3 1060.1 1.31 20.02 27730.05 HCA Hold 66.30 -0.95 95.49 43.91 - 13.80 27028.37 VertexPharm 117.64 -7.53 143.45 97.45 - -42.69 28906.18
JardnStr US$ 26.70 -0.75 36.93 26.11 0.98 9.78 29745.1 Ace 113.08 -4.58 117.98 96.00 2.34 13.75 36658.44
Hngzh HikVDT RMB 33.48 -1.23 56.48 21.53 1.22 23.35 16366.89 ICICI Bk 249.30 -12.15 393.40 247.15 2.04 11.35 21667.57 Hew-Pack♦ 12.21 -0.11 18.66 11.03 5.24 5.10 21956.32 VF Cp♦ 61.81 -2.59 77.83 61.17 2.08 25.64 26350.16
OCBC 8.62 -0.12 10.92 8.60 4.17 9.59 25104.22 Adobe 91.42 -1.16 93.65 68.98 - 94.73 45600.24
Hunng Pwr 6.50 -0.60 11.90 6.41 7.23 6.08 3941.98 Infosys 1052.8 3.75 2336 932.65 3.60 18.61 35984.75 HiltonWwde♦ 21.80 -1.25 31.60 20.93 0.32 28.68 21526.45 Viacom♦ 41.59 -4.63 77.89 36.32 3.53 8.75 14438.66
SingTel 3.84 0.02 4.57 3.43 4.55 15.83 43327.15 AEP 54.56 -1.28 65.38 52.29 3.90 15.07 26779
IM Baotou Stl RMB 3.63 -0.25 7.50 3.16 - -45.52 8852.21 ITC 321.00 -14.95 409.95 294.00 2.05 24.42 38558.65 HomeDep♦ 130.44 -4.09 135.47 92.17 1.69 24.82 165382.43 Visa Inc 76.11 -4.29 81.01 60.00 0.63 29.42 148143.73
UOB■ 19.16 -0.25 25.05 18.20 4.43 9.72 21718.44 Aetna 104.91 -0.41 134.40 85.62 0.93 16.02 36582.12
In&CmBkCh 4.52 -0.21 7.10 4.30 7.03 4.79 50616.55 L&T 1285.75 -54.10 1893.8 1276.55 1.21 22.88 17905.03 Honywell 98.23 -6.32 107.41 87.00 2.12 17.13 75705.02 Walgreen 81.71 -2.91 97.30 69.85 1.66 20.63 88708.96
Aflac 59.71 -3.81 66.53 51.41 2.62 10.40 25480.57
IndstrlBk RMB 15.95 -0.64 21.42 11.90 3.64 5.97 39977.24 OilNatGas 215.35 -11.85 373.80 212.90 4.70 9.18 27552.36 South Africa (R) HumanaInc 172.78 2.01 219.79 137.45 0.66 19.79 25610.13 WalMartSto♦ 59.36 -0.30 90.97 56.30 3.24 12.92 190064.38
AirProd 130.48 -7.96 158.20 123.66 2.46 22.09 28108.86
Kweichow RMB 211.41 -8.79 290.00 166.20 2.11 16.20 41140.27 RelianceIn 952.95 -12.50 1067.85 796.45 1.07 11.17 46161.32 Firstrand 35.57 -9.73 58.47 34.08 6.82 7.04 12458.9 IBM 134.57 -5.86 176.30 131.65 3.58 9.18 130547.72 WellsFargo 53.31 -2.36 58.77 47.75 2.73 12.83 273659.38
Alexion 188.06 12.30 208.88 142.02 - 169.59 42374.49
Midea 1.98 -0.02 2.68 1.65 4.88 12.88 54.94 SBI NewA 227.30 -13.80 336.00 220.15 1.58 9.18 26386.69 MTN Grp 125.50 -10.24 250.00 123.04 12.66 5.90 14462.02 IllinoisTool 91.46 -2.86 100.14 78.79 2.20 17.93 33244.96 Williams Cos♦ 26.42 -4.69 61.38 25.52 9.05 58.74 19808.78
Allegran 302.07 -14.43 340.34 237.50 - -40.81 119053.2
New Ch Life Ins 31.40 -3.30 56.55 27.05 0.82 8.63 4189.51 SunPhrmInds 757.80 2.40 1200.8 704.00 - 62.41 27272.72 Naspers N 1987.66 10.26 2270 1283 0.28 53.69 52084.52 Illumina 174.82 -4.01 242.37 130.00 - 50.81 25593.65 Yahoo 32.91 -2.00 51.68 27.20 - 128.29 31078.73
Allstate♦ 61.47 -3.02 72.87 54.12 1.93 10.66 23807.71
PetroChina 5.08 -0.59 11.04 5.07 3.85 17.61 13829.06 Tata Cons 2386 57.60 2812.1 2315.25 1.69 22.00 70307.17 South Korea (KRW) Intcntl Exch 243.95 -20.19 266.74 202.24 0.89 22.97 26771.86 Yum!Brnds 71.30 -4.84 95.90 66.35 2.31 33.93 30747.53
Alphabet 750.42 -28.79 793.05 490.91 - 34.47 218618.19
PingAnIns 40.95 -3.30 62.90 35.00 2.05 10.73 39349.27 Indonesia (Rp) HyundMobis 234500-7000.00 271500 185500 1.28 11.84 19353.23 Intel 34.27 -0.67 37.74 24.87 2.77 14.61 161720.13 Venezuela ()
Altria 56.46 -2.05 61.74 47.31 3.78 21.15 110699.96
PngAnBnk RMB 11.83 -0.62 17.50 9.30 1.50 7.37 21632.11 Bk Cent Asia 13200 -100.00 15600 11000 1.07 19.27 23333.75 KoreaElePwr 48600 -350.00 54000 38750 1.05 6.71 26451.42 Intuit 96.12 -2.51 109.21 79.63 1.08 59.53 25376.1 Bco de Vnzla 106.99 11.99 143.95 27.00 - - 28904.23
Amazon 640.15 -32.49 684.82 285.25 - 919.57 300078
Pwr Cons Corp RMB 7.91 -0.65 20.00 5.18 1.29 15.26 4043.66 SK Hynix 29850-1300.00 51700 29600 1.00 4.71 18423.78 John&John 101.68 -1.27 107.39 81.79 2.86 19.42 281342.83 Bco Provncl 4300 950.00 4400 850.00 0.81 58.20 34345.05
Israel (ILS) AmerAir 42.09 -2.88 56.20 34.10 0.95 6.02 26530.4
SaicMtr RMB 20.41 -0.73 29.18 14.00 6.50 7.66 34859.98 SmsungEl 1284000-6000.00 1510000 1033000 1.60 9.42 140769.35 JohnsonCn♦ 40.18 -2.97 54.52 38.48 2.60 18.35 26023.65 Mrcntl Srvcs 5100 350.00 5900 1310 0.16 37.68 22440.51
TevaPha 253.00 250.52 275.90 213.20 2.01 31.67 66416.05 AmerExpr 68.86 -2.24 94.89 68.48 1.60 12.20 67775.17
ShenwanHong 0.16 -0.01 0.41 0.16 - -2.48 52.84 Spain (€) JPMrgnCh 64.07 -3.82 70.61 50.07 2.63 10.87 235849.98
Italy (€) AmerIntGrp♦ 59.46 -4.53 64.93 48.68 1.11 17.17 73552.76
ShgPdgBk RMB 18.60 -0.65 20.12 11.91 4.15 6.89 53747.18 Kimb-Clark♦ 119.20 -2.10 122.97 103.04 2.93 71.45 43268.93 Closing prices and highs & lows are in traded currency (with variations for that
Enel 3.88 -0.19 4.50 3.36 3.68 63.40 40101.84 BBVA 6.99 -0.38 9.77 6.98 2.33 17.44 48967.98 AmerTower 93.68 -3.87 104.12 86.83 1.82 69.63 39680.05
Sinopec Corp 4.41 -0.41 7.79 4.39 5.60 20.42 14516.89 KinderM 16.66 -0.16 44.71 15.06 11.21 30.92 37177.03 country indicated by stock), market capitalisation is in USD. Highs & lows are
ENI 13.64 -0.97 17.66 12.98 7.18 -17.55 54512.38 BcoSantdr 4.61 -0.35 7.19 4.55 10.98 8.69 73129.61 Amgen 155.15 -6.28 181.81 130.09 1.93 18.45 117033.97
Sinopec Oil RMB 8.00 -0.92 14.23 4.43 - -226.26 557.68 Kraft 88.19 1.21 91.32 53.33 1.93 -56.14 52233.16 based on intraday trading over a rolling 52 week period.
Generali 16.89 -0.45 19.21 15.16 3.62 13.40 28917.22 CaixaBnk 3.45 -0.18 4.57 3.32 2.36 28.58 22115.21 Anadarko♦ 49.55 -7.26 95.94 48.71 2.19 -4.30 25178.47
Denmark (kr) Iberdrola 6.49 -0.10 6.71 5.31 2.43 16.34 45254.38 Kroger 41.08 0.53 41.68 27.32 0.85 21.49 39988.69 ♦ ex-dividend
IntSPaolo 3.02 -0.15 3.65 2.22 2.36 17.04 52636.19 Anthem♦ 135.78 3.03 173.59 121.22 1.71 12.94 35436.35
DanskeBk 176.70 -14.00 218.00 155.50 3.17 25.61 26268.01 Inditex 32.04 -1.22 35.38 21.56 1.24 35.57 109796.07 L Brands 96.56 -2.91 101.11 75.11 1.88 24.65 27947.78 ■ ex-capital redistribution
Luxottica 59.55 -2.50 67.80 42.22 1.23 35.47 31669.14 Aon Cp 93.30 -3.35 107.08 86.38 1.18 21.22 25556.44
MollerMrsk 9195 -835.00 16450 9195 3.22 8.27 14423.61 Repsol 10.66 -0.86 18.75 9.90 9.14 30.63 16416.14 LasVegasSd 41.26 -2.43 61.59 36.53 5.96 14.77 32902.84 # price at time of suspension
Unicred 5.08 -0.29 6.61 4.82 2.41 15.58 33302.64 Apple 113.18 -5.85 134.54 92.00 1.76 12.23 631015.96
NovoB 378.10 -11.00 415.00 256.00 1.35 29.01 114941.56 Telefonica 10.57 -0.51 14.31 10.38 3.86 17.44 56515.47 LibertyGbl 41.39 -0.92 58.66 40.85 - -26.59 10461.58
ArcherDan 34.22 -1.75 53.69 34.11 3.17 11.77 20420.44
Lilly (E) 83.29 -3.33 92.85 68.31 2.40 37.52 92291.7

FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
Alexion 188.06 187.63 0.43 0.23 12.30 7.0 10.92 DirectTV 93.55 92.19 1.36 1.48 - - 0.42 Dec 11 date Coupon S* M* F* price yield yield yield US Dec 11 date Coupon S* M* F* price yield yield yield US
TrnCan 44.68 44.68 0.00 0.00 2.91 7.0 4.65 Firstrand 35.57 38.79 -3.22 -8.30 -9.73 -21.5 -27.85 High Yield US$ US$
DuPont 70.44 74.55 -4.11 -5.51 2.69 4.0 5.13 Williams Cos 26.42 29.68 -3.26 -10.98 -4.69 -15.1 -24.06 Windstream Services, LLC 11/17 7.88 B+ B2 BB 103.74 5.82 0.00 1.00 4.92 Burlington Resources, Inc. 02/26 6.88 A A2 A 118.92 4.58 0.00 0.09 2.42
ValeantPh 132.40 132.40 0.00 0.00 4.99 3.9 22.42 Altice 10.59 11.09 -0.50 -4.51 -1.83 -14.7 -34.54 High Yield Euro Merrill Lynch & Co., Inc. 09/26 6.22 BBB+ Baa3 A- 114.31 4.57 0.00 -0.03 2.41
China Vanke 19.90 19.54 0.36 1.84 0.75 3.9 39.45 Anadarko 49.55 51.23 -1.68 -3.28 -7.26 -12.8 -18.78 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - Cummins Inc. 02/27 6.75 A+ A2 A 119.32 4.58 0.00 -0.50 -
Corning 18.68 17.69 0.99 5.60 0.65 3.6 0.92 Franklin 36.18 38.47 -2.29 -5.95 -4.96 -12.1 -11.41 Korea Electric Power Corporation 08/27 6.75 AA- Aa3 AA- 98.93 7.00 0.00 -0.09 -
Vale 12.67 12.67 0.00 0.00 0.32 2.6 -19.91 PTT Explor 220.00 232.00 -12.00 -5.17 -30.00 -12.0 -20.86 Emerging US$ SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 109.49 5.01 0.00 -0.10 -
Syngent 378.80 378.80 0.00 0.00 9.40 2.5 7.64 Ch Rail Gp 5.77 5.99 -0.22 -3.67 -0.77 -11.8 -18.16 Peru 05/16 8.38 BBB+ A3 BBB+ 102.72 1.25 0.00 0.23 0.34 FleetBoston Financial Corp. 01/28 6.88 BBB+ Baa3 A- 118.93 4.85 0.00 -0.11 -
Tata Cons 2386.00 2384.55 1.45 0.06 57.60 2.5 -2.94 Tesco 144.35 150.55 -6.20 -4.12 -18.25 -11.2 -17.04 Mexico 09/16 11.40 BBB+ A3 BBB+ 107.44 1.37 0.01 0.15 0.46
Brazil 01/18 8.00 BB+ Baa3 BBB- 105.00 5.41 0.07 0.07 4.51 Euro
Anthem 135.78 134.84 0.94 0.70 3.03 2.3 1.18 Lyondell 85.58 87.50 -1.92 -2.19 -10.75 -11.2 -7.51 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 95.66 3.09 0.00 -0.05 -
MylanNV 52.56 52.93 -0.37 -0.70 1.15 2.2 18.14 CNOOC 7.94 8.17 -0.23 -2.82 -0.98 -11.0 -7.67 Russia 07/18 11.00 BB+ Ba1 BBB- 119.34 3.23 0.00 -0.10 2.32
Peru 03/19 7.13 BBB+ A3 BBB+ 114.75 2.45 0.00 0.02 0.86 BHP Billiton Fin Ltd 09/27 3.25 A+ A1 A+ 109.10 2.36 0.00 0.26 -
BOE Tech 2.26 2.36 -0.10 -4.24 0.04 1.8 18.95 Marathon Ptl 49.62 52.35 -2.73 -5.21 -6.01 -10.8 -9.52 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 108.71 2.35 0.00 0.18 -
Volkswgn 139.60 139.60 0.00 0.00 2.30 1.7 0.22 ChinaPcIns 29.85 30.40 -0.55 -1.81 -3.60 -10.8 -8.01 Brazil 01/21 7.88 BB+ Baa3 BBB- 94.96 6.03 0.13 0.59 4.44
Turkey 03/21 5.63 - Baa3 BBB- 105.74 4.44 0.00 0.16 2.85 Philip Morris Intl, Inc. 05/29 2.88 A A2 A 108.36 2.15 0.00 0.01 -
T-MobileUS 36.00 36.34 -0.34 -0.94 0.55 1.6 -3.74 BlackRock 322.78 345.25 -22.47 -6.51 -37.98 -10.5 -7.91
Poland 04/21 5.13 A- A2 A- 111.68 2.78 0.00 -0.05 1.19 Yen
Raytheon 126.20 127.40 -1.20 -0.94 1.91 1.5 6.65 PetroChina 5.08 5.17 -0.09 -1.74 -0.59 -10.4 -13.01
Colombia 07/21 4.38 BBB Baa2 BBB 101.17 4.18 0.00 0.12 2.59 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
Cielo 36.40 36.40 0.00 0.00 0.50 1.4 -0.88 Sinopec Oil 8.00 8.25 -0.25 -3.03 -0.92 -10.3 -20.24
Kraft 88.19 88.30 -0.11 -0.12 1.21 1.4 4.58 StateSt 66.12 69.05 -2.93 -4.24 -7.57 -10.3 -7.72 Turkey 04/26 4.25 - Baa3 BBB- 93.31 5.15 0.00 0.17 2.99 £ Sterling
Kroger 41.08 41.13 -0.05 -0.12 0.53 1.3 10.94 Viacom 41.59 43.93 -2.34 -5.33 -4.63 -10.0 -15.72 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 123.64 4.01 -0.01 -0.02 1.85
Telenor 148.60 147.40 1.20 0.81 1.90 1.3 -4.93 Nmrcble-SFR 34.47 35.50 -1.03 -2.90 -3.84 -10.0 -14.61 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 B.A.T. Intl Fin plc (Re - British American Tobacco) 09/26 4.00 A- A3 A- 105.94 3.33 0.05 -0.06 1.17
DukeEner 67.84 67.43 0.41 0.61 0.80 1.2 -0.57 CSR 9.49 9.80 -0.31 -3.16 -1.05 -10.0 -1.96 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.59 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M -
Mexico 02/20 5.50 BBB+ - BBB+ 109.89 2.95 0.00 -0.06 1.35 Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 09/25 5.75 BB+ - BBB- 114.90 3.94 0.00 -0.05 1.78
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Dec 11 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Dec 11 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.00-0.25 16-12-2008 1.00 0.00-0.25 0.00-0.25 Index change change change 1 month 1 year VIX 24.39 5.05 19.34 53.29 10.88 Dec 11 Price £ Yield Day Week Month Year High Low £m
US Prime 3.25 16-12-2008 3.25 3.25 3.25 Markit IBoxx VXD 22.57 4.36 18.21 56.32 7.04 Tr 2pc '16 100.17 0.39 -7.14 -18.75 -17.02 -18.75 101.73 100.17 0.32
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 172.47 -0.18 -0.50 -3.26 0.11 -3.37 VXN 24.38 4.27 20.11 46.72 11.15 Tr 1.75pc '17 101.46 0.43 -2.27 -14.00 -21.82 -31.75 102.68 101.38 0.29
Euro Repo 0.05 10-09-2014 0.05 0.05 0.25 Corporates( £) 298.59 0.20 0.14 1.73 2.23 2.67 VDAX 23.85 1.46 22.39 29.94 - Tr 5pc '18 109.83 0.56 -5.08 -13.85 -18.84 -39.78 113.54 109.70 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 250.70 -0.20 -0.27 0.09 -0.27 0.09 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 111.75 0.81 -3.57 -10.00 -15.63 -30.17 115.07 111.42 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 211.95 0.01 -0.54 -0.35 0.10 0.05 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 115.40 1.02 -3.77 -8.93 -15.70 -25.00 119.04 114.67 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 226.74 0.16 -0.40 2.28 0.82 3.23 Tr 1.5pc '21 100.97 1.30 -2.99 -7.14 -11.56 -13.33 142.92 99.91 0.12
Gilts( £) 291.61 0.42 0.49 2.09 2.54 3.62 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 115.93 1.33 -2.92 -8.28 -13.64 -16.88 119.85 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 242.66 -0.40 -0.02 -3.26 1.02 -4.46 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 128.21 1.69 -2.31 -6.63 -10.58 -10.58 134.70 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 298.28 0.25 0.22 1.63 2.10 2.57 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 124.64 1.94 -2.02 -5.83 -8.92 -8.06 131.90 119.79 0.31
Dec 11 (Libor: Dec 10) night Day Week Month month month month year Overall ($) 225.68 -0.18 -0.09 0.67 -0.09 0.67 Australia 10/18 3.25 102.98 2.17 -0.03 -0.02 0.00 -0.18 Tr 4.25pc '32 127.66 2.23 -1.76 -5.51 -8.23 -5.51 136.85 121.93 0.35
US$ Libor 0.13150 0.002 0.001 0.017 0.31700 0.50200 0.73590 1.05470 Overall( £) 290.89 0.37 0.41 1.96 2.41 3.30 04/26 4.25 111.80 2.92 -0.02 -0.10 -0.11 -0.13 Tr 4.25pc '36 129.52 2.40 -1.64 -5.14 -7.69 -4.00 140.37 123.52 0.28
Euro Libor -0.27571 -0.002 -0.088 -0.004 -0.19500 -0.12143 -0.03357 0.06143 Overall(€) 221.90 0.13 -0.39 1.56 0.57 2.28 Austria 10/18 1.15 103.64 0.05 0.00 0.00 0.00 0.00 Tr 4.5pc '42 139.84 2.47 -1.59 -4.63 -7.14 -4.63 153.16 132.20 0.26
£ Libor 0.48063 0.000 0.000 0.001 0.50413 0.58263 0.74000 1.05013 Treasuries ($) 217.25 -0.17 0.04 1.02 0.04 1.02 10/25 1.20 103.75 0.80 -0.03 -0.14 -0.03 0.00 Tr 3.75pc '52 133.12 2.39 -1.24 -4.78 -8.08 -8.78 145.21 121.95 0.22
Swiss Fr Libor 0.023 -0.81600 -0.78400 -0.73160 -0.64160 FTSE Belgium 06/18 0.75 101.87 -0.01 0.00 0.00 0.00 0.00 Tr 4pc '60 145.51 2.34 -1.68 -4.88 -8.24 -9.65 159.23 131.72 0.21
Yen Libor 0.003 0.04143 0.07786 0.11714 0.22286 Sterling Corporate (£) 111.21 0.17 - - 1.88 -2.00 06/25 0.80 99.58 0.85 -0.01 -0.14 0.00 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor -0.005 -0.18600 -0.12500 -0.03600 0.06400 Euro Corporate (€) 106.05 0.05 - - -0.07 -3.26 Canada 11/17 0.25 99.56 0.49 -0.07 -0.14 -0.13 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.51000 0.60000 0.79500 Euro Emerging Mkts (€) 842.29 -30.72 - - -12.46 -11.61 06/26 1.50 99.43 1.56 -0.06 -0.15 -0.23 0.00
US$ CDs
Euro CDs
0.000
0.000
0.26000
-0.22500
0.48000
-0.16500
0.69000
-0.05500
Eurozone Govt Bond 114.21 0.20 - - 0.59 0.37 Denmark 11/18 0.25 101.57 -0.28 0.00 0.00 0.00 0.00 GILTS: UK FTSE ACTUARIES INDICES
CREDIT INDICES Day's Week's Month's Series Series 11/25 1.75 109.41 0.76 -0.04 -0.17 -0.08 -0.20
Price Indices Day's Total Return Return
Short 7 Days One Three Six One Index change change change high low Finland 05/18 1.00 99.38 1.26 0.00 0.01 0.05 0.00
Fixed Coupon Dec 11 chg % Return 1 month 1 year Yield
Dec 11 term notice month month month year Markit iTraxx 09/25 0.88 100.64 0.81 -0.03 -0.12 0.02 0.00
1 Up to 5 Years 98.62 0.09 2371.08 0.53 1.59 0.90
Euro -0.35 -0.25 -0.35 -0.25 -0.30 -0.15 -0.24 -0.09 -0.15 0.00 -0.04 0.11 Crossover 5Y 339.23 20.23 37.75 43.36 389.82 280.05 France 05/18 1.00 103.02 -0.23 0.00 0.00 0.00 0.00
2 5 - 10 Years 180.03 0.31 3257.87 1.65 3.15 1.54
Sterling 0.40 0.55 0.40 0.55 0.46 0.56 0.55 0.65 0.72 0.87 1.02 1.17 Europe 5Y 81.13 4.25 8.05 10.37 95.40 68.39 11/20 0.25 101.06 0.04 -0.01 -0.11 -0.02 0.00
3 10 - 15 Years 205.69 0.46 3831.19 2.34 3.82 2.02
Swiss Franc - - - - - - - - - - - - Japan 5Y 74.25 -0.31 -0.16 6.19 83.13 65.01 11/25 1.00 101.25 0.87 -0.02 -0.14 -0.01 0.00
4 5 - 15 Years 186.07 0.35 3396.16 1.79 3.32 1.73
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 78.98 5.61 7.51 8.87 99.56 65.28 05/45 3.25 131.69 1.85 -0.03 -0.18 -0.05 -0.13
5 Over 15 Years 301.02 0.69 4370.24 4.35 5.56 2.40
US Dollar 0.12 0.22 0.26 0.36 0.30 0.40 0.50 0.60 0.75 0.85 1.05 1.15 Germany 04/18 0.25 101.36 -0.33 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 173.33 0.40 3249.84 2.42 3.51 2.14
Japanese Yen -0.03 0.07 -0.25 -0.05 -0.40 -0.10 -0.15 0.15 -0.15 0.15 -0.10 0.20 10/20 0.25 101.72 -0.11 0.00 0.00 0.00 0.00
Emerging Markets 5Y 357.33 13.37 14.91 29.43 357.33 299.17 08/25 1.00 104.29 0.54 -0.03 -0.14 -0.02 0.00
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Day's Month Year's Total Return Return
Nth Amer High Yld 5Y 476.57 10.86 30.40 15.89 509.34 416.39 08/46 2.50 129.15 1.34 -0.06 -0.16 -0.08 -0.17
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Dec 11 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 87.80 1.88 4.26 4.43 94.63 75.52 Greece 07/17 3.38 92.56 8.56 0.22 0.59 2.31 -1.77
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 228.00 100.00 1 Up to 5 Years 308.55 -0.02 -0.22 -2.34 2357.36 -0.08 -0.74
02/26 3.00 67.06 8.53 0.05 0.38 1.41 -0.89 2 Over 5 years 570.83 0.38 1.50 0.34 4213.23 1.66 1.09
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 110.45 -0.16 0.00 0.00 0.00 0.00 3 5-15 years 428.65 0.10 0.22 -2.03 3257.41 0.47 -0.91
03/25 5.40 138.08 1.05 -0.03 -0.15 -0.04 -0.41 4 Over 15 years 704.26 0.49 2.03 1.51 5102.11 2.16 2.11
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/18 0.30 100.37 0.17 0.00 -0.01 0.00 0.00 5 All stocks 528.42 0.32 1.24 0.15 3950.38 1.40 1.02
11/20 0.65 100.25 0.60 0.00 -0.05 0.06 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
12/25 2.00 104.31 1.54 -0.02 -0.12 -0.03 0.00 Yield Indices Dec 11 Dec 10 Yr ago Dec 11 Dec 10 Yr ago
Crude Oil† Dec 35.36 -1.19 Corn♦ Mar 376.25 -3.00 Oct 12 Oct 12 Prev return stock Market stocks
09/46 3.25 113.93 2.61 -0.01 -0.11 -0.10 0.00 5 Yrs 1.14 1.19 1.30 20 Yrs 2.43 2.47 2.50
Brent Crude Oil‡ 37.91 -1.64 Wheat♦ Mar 490.75 -5.00 Can 4.25%' 21 127.46 -0.303 -0.322 0.33 5.18 69278.06 7
Japan 11/17 0.10 100.25 -0.03 0.00 0.00 0.00 0.00 10 Yrs 1.85 1.89 1.94 45 Yrs 2.36 2.39 2.62
RBOB Gasoline† Dec 1.27 0.00 Soybeans♦ Jan 872.25 -7.00 Fr 2.25%' 20 115.18 -0.948 -0.916 -0.66 20.31 216044.45 14
12/20 0.05 99.95 0.06 0.00 0.00 -0.01 0.00 15 Yrs 2.26 2.29 2.31
Heating Oil† Dec 1.22 -0.02 Soybeans Meal♦ Jan 273.60 -1.00 Swe 0.25%' 22 108.12 -0.820 -0.840 -1.23 32.00 224658.77 7
09/25 0.40 101.02 0.29 0.00 -0.02 -0.01 0.00
Natural Gas† Dec 1.98 -0.03 Cocoa (ICE Liffe)X Mar 2278.00 -1.00 UK 2.5%' 16 - - - - - - -
09/45 1.40 100.86 1.36 -0.01 -0.05 -0.04 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Mar 3357.00 1.00 UK 2.5%' 24 336.60 -0.722 -0.719 -0.98 6.82 480984.21 25
Netherlands 04/17 0.50 101.10 -0.32 0.00 0.00 0.00 0.00 Real yield Dec 11 Dur yrs Previous Yr ago Dec 11 Dur yrs Previous Yr ago
Uranium Dec 36.75 0.00 Coffee(Robusta)X Jan 1499.00 -23.00 UK 2%' 35 230.00 -0.738 -0.741 -0.85 9.08 480984.21 25
07/25 0.25 95.87 0.70 -0.02 -0.14 -0.03 0.00 Up to 5 yrs -0.78 2.41 -0.79 -1.01 -1.50 2.43 -1.52 -1.57
Carbon Emissions - - Coffee (Arabica)♥ Mar 121.50 -3.10 US 0.625%' 21 100.81 0.478 0.416 -0.71 35.84 1102087.37 36
Diesel Dec - - White SugarX 399.20 1.00 New Zealand - - - - - - - Over 5 yrs -0.80 23.53 -0.78 -0.74 -0.82 23.61 -0.81 -0.77
US 3.625%' 28 131.70 0.905 0.416 -0.79 16.78 1102087.37 36
Unleaded (95R) - - Sugar 11♥ 14.65 0.10 12/17 6.00 106.57 2.61 0.01 0.02 -0.04 -0.96 5-15 yrs -0.70 9.64 -0.69 -0.80 -0.80 9.65 -0.79 -0.92
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/17 4.25 105.18 0.59 -0.01 -0.05 -0.05 -0.42 Over 15 yrs -0.81 29.18 -0.80 -0.73 -0.83 29.22 -0.81 -0.75
Base Metals (♠ LME 3 Months) Cotton♥ Mar 63.85 0.10 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
03/25 1.75 102.46 1.46 -0.05 -0.12 -0.12 0.00 All stocks -0.80 20.45 -0.78 -0.74 -0.83 20.58 -0.82 -0.78
Aluminium 1482.00 -8.00 Orange Juice♥ Jan 150.35 1.70 amount.
Aluminium Alloy 1600.00 -10.00 Palm Oil♣ Jan 562.00 5.75 Portugal 06/18 4.45 110.47 0.25 -0.01 -0.10 -0.28 -1.15 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4696.00 105.50 Live Cattle♣ Dec 121.15 0.15 BONDS: TEN YEAR GOVT SPREADS 10/25 2.88 103.77 2.44 0.01 -0.04 -0.31 0.00
Lead 1727.00 20.00 Spain 04/18 0.25 100.16 0.18 0.00 0.01 -0.01 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Jan 152.23 -0.30
Nickel 8745.00 200.00 Lean Hogs♣ Feb 60.50 1.35 Spread Spread Spread Spread 10/25 2.15 104.89 1.61 -0.02 -0.12 -0.20 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 14555.00 5.00 Bid vs vs Bid vs vs Sweden 01/18 0.88 99.37 1.18 0.00 -0.01 0.03 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1547.00 14.50 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 114.91 0.84 -0.02 -0.11 -0.03 -0.15 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Dec 10 Month Year Australia 2.92 2.38 0.76 Italy 1.54 1.00 -0.62 Switzerland 01/18 3.00 108.29 -0.96 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1072.50 1.50 S&P GSCI Spt 313.92 -5.82 - Austria 0.80 0.26 -1.36 Japan 0.29 -0.25 -1.87 05/26 1.25 114.40 -0.12 0.00 0.00 0.00 0.00
Silver (US cents) 1392.00 -25.00 DJ UBS Spot 78.42 -3.54 - Belgium 0.85 0.30 -1.31 Netherlands 0.70 0.15 -1.46 United Kingdom 07/18 1.25 101.24 0.77 -0.04 -0.08 -0.11 -0.34 Data provided by Morningstar | www.morningstar.co.uk
Platinum 836.00 -21.00 R/J CRB TR 175.36 -7.67 -29.16 Canada 1.56 1.02 -0.60 Norway 1.46 0.92 -0.70 01/21 1.50 100.94 1.31 -0.05 -0.09 -0.14 0.00
Palladium 543.00 -13.00 Rogers RICIX TR 2062.62 - - Denmark 0.76 0.22 -1.40 Portugal 2.44 1.90 0.28 09/25 2.00 101.62 1.82 -0.05 -0.11 -0.17 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Finland 0.81 0.27 -1.35 Spain 1.61 1.07 -0.55 01/45 3.50 120.61 2.50 -0.04 -0.11 -0.18 -0.14
Iron Ore (Platts) 38.60 0.00 UBS Bberg CMCI TR 12.15 -6.79 -29.40 France 0.87 0.33 -1.29 Switzerland -0.12 -0.66 -2.28 United States 11/17 0.88 99.95 0.90 -0.05 -0.05 0.00 0.00
Iron Ore (The Steel Index) 37.00 -0.50 LEBA EUA Carbon 8.18 -3.99 23.01 Germany 0.54 0.00 -1.62 United Kingdom 1.82 1.28 -0.34 11/20 1.63 100.15 1.59 -0.09 -0.12 0.00 0.00
GlobalCOAL RB Index 47.25 -2.25 LEBA CER Carbon 0.52 -18.75 1633.33 Greece 8.53 7.99 6.37 United States 2.16 1.62 0.00 11/25 2.25 100.80 2.16 -0.08 -0.11 -0.11 0.00
Baltic Dry Index 522.00 -12.00 LEBA UK Power 1490.00 125.42 12.37 Ireland 1.05 0.51 -1.11 11/45 3.00 102.07 2.90 -0.07 -0.12 -0.16 0.00
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information & Tullett Prebon Information Data provided by SIX Financial Information & Tullett Prebon Information
unless otherwise stated.
22 ★ Monday 14 December 2015

Corporate diary December 14 — December 18 ECONOMIC OUTLOOK

TUESDAY 15 in October announced a joint venture Fed rate decision with projections updated
Imagination Technologies, the UK chip with the China State Shipbuilding
designer that counts Apple as one of its Corporation to buy or build seven new The highlight of the coming week is the is also set to announce its decision on
major customers, has been trying to set cruise ships in the fast-growing east policy announcement by the US Federal interest rates tomorrow. The country
expectations low. Asian market over the next 10 years. Reserve. The central bank is widely has been struggling with persistently
In September, the company warned As the industry booms, analysts expected to raise interest rates for the low inflation since 2013 and interest
that it was heading for a first-half loss, caution that oversupply could hit profit first time in almost a decade. rates are already in negative territory,
after being hit by slowing growth in China margins. The market is expected to add Trevor Charsley, currency manager of but, given the Riksbank’s focus on
and other emerging markets. 146,000 passenger berths by 2020. AFEX, says: “The probability of a 25 inflation, further easing cannot be
Analysts are stubbornly optimistic But Nomura analaysts say Carnival is basis point rate hike is now 85 per cent ruled out. Analysts at HSBC believe that
about its progress though. Consensus close to meeting last year’s average and it is worth noting that last week the the repo rate will be cut from -0.35 per
analyst estimates suggest that when the prices and predict that the last tranche of Cleveland Fed commented that PCE cent to -0.5 per cent before the end of
company reports performance for the six its tickets will be sold at higher yields as inflation [Personal Consumption the year.
Luke Sharrett/Bloomberg
months ending October 31, revenues will supply runs out. Investors will want to see Expenditure ] is on track to be 2 per cent Inflation data for the US and UK in
be £85.1m — a small increase on the FedEx investors look for robust rebound after warning how much of existing inventory has been mid to late 2017.” November are also out tomorrow. In the
£82.2m during the same period last year. filled — and at what prices. Most markets have already priced in a UK, deflation reappeared in the headline
Pre-tax profits are estimated to be Analysts forecast pre-tax profits of rate rise, so the actual announcement is CPI in October with the rate slipping to
£2.7m for the six months, down from Investors will be looking when FedEx, principles are expected to increase 18.7 $1.24bn for the year and earnings per unlikely to have a huge impact when it is -0.1 per cent year on year, while in the
£7.6m a year earlier. However, the the package-delivery service, per cent to $2.54, while revenue is share of $0.41 for the quarter. Aliya Ram made on Wednesday. In addition to the US the rate crept up to 0.2 per cent year
company is expected to report an announces its September to November expected to increase 4.6 per cent to rate decision, the Fed will also update its on year in October.
operating loss of £4.4m, though this is up results on Wednesday for signs the $12.4bn. EARNINGS economic projections out to 2018. In the UK, a number of small factors,
from a £9m loss a year earlier. company is still suffering from the poor Like United Parcel Service, its larger Carnival Q4 $0.41 ($0.27) Growth and inflation are expected to be like the base effect of last November’s
It has ramped up spending in the past conditions that forced it in September rival, FedEx has been grappling with the General Mills Q2 $0.83 ($0.80) revised downwards from September’s energy-price declines being greater than
couple of years, especially on research to warn about future profits. implications of sharp changes in the forecasts. those this November, are likely to push
and development, as it looks for growth. The company warned when it business environment following the rise FRIDAY 18 The Riksbank, Sweden’s central bank, the rate back to zero year on year. In the
In June, while revealing its full-year published its results for the three of ecommerce shipments. Costs to BlackBerry, the Canadian tech group, will US, the rate is expected to tick up to 0.5
results, the company reported widening months to the end of August that it deliver small volumes of packages to be under pressure to show improvement per cent year on year. Rental inflation is
losses of £12m in a drive to develop new expected results for the year to May dispersed individual homes are far in its third-quarter earnings as it makes US interest rates an item exerting upward pressure.
products, such as components that tap 2016 of between $10.40 and $10.90 per higher than those for high-volume the shift from a handset-making past to a UK labour market data are out on
Per cent
into the so-called “internet of things”. share. It had previously projected deliveries to businesses, previously the more software-focused future. Wednesday after data for the three
The 2015 results came on the back of a earnings of between $10.60 and $11.10. companies’ main business. Software sales rose by about a quarter 5 months to September were mixed. While
poor 2014, which it described as a The company blamed the cut on Consumer business is also more in the previous three-month period, but US 10-year bond yield 4 the unemployment rate fell to 5.3 per
“transition” year where it took losses and higher than expected operating costs at volatile and harder to predict than this was much lower than the first 3 cent, earnings growth (excluding
declining revenues as it invested in a new FedEx Ground, its road-delivery service, deliveries to businesses. UPS suffered quarter’s growth, which has meant bonuses) was lower than anticipated at
2
suite of products. Murad Ahmed and slacker than expected demand for severe problems over Christmas 2013 additional scrutiny to see if the group can 2.5 per cent year on year.
less than truckload trucking — when it failed to forecast accurately a make its 2016 software sales target. 1 The latest data for the three months
Fed Funds target rate
EARNINGS movements of small loads bundled significant spike in deliveries and its Investors will look to see whether 0 to October are expected to show a
Imagination Tech H1 0.10p (1.30p) together to fill a truck. networks became severely congested. BlackBerry can accelerate sales growth in 2006 08 10 12 14 15 further decline in wage growth, with the
However, the consensus forecast for Investors will also be looking in the its BES12 and QNX software, in particular. annual rate falling to 2.3 per cent and
WEDNESDAY 16 Source: Thomson Reuters Datastream
the just-finished quarter is for a robust results for news on progress towards Acquisition of Good Technology should the unemployment rate expected to
Half-year results from Dixons Carphone rebound from the same period last year, completing FedEx’s €4.4bn takeover of broaden its software customer base. remain at 5.3 per cent. Andrew Whiffin
will give a first official clue to retailers’ when the company’s margins were the Netherlands’ TNT Express, which Meanwhile, BlackBerry will also be
pre-Christmas trading environment. squeezed by intensive preparations for should give the company extra scale in asked about the future of its handset 4CAST ECONOMIC CALENDAR
The company, which owns brands such the pre-Christmas peak season. the European market, where it is business given doubts among analysts
COUNTRY For Indicator Units* Mkt* Prev* COUNTRY For Indicator Units* Mkt* Prev*
as Currys and PC World, has snatched Earnings per share measured by currently a relatively minor presence. about whether the launch of its latest MONDAY US Dec Final manuf. PMI 52.8 52.8
market share in the UK after the merger generally accepted accounting Robert Wright smartphone, the Priv, has managed to Eurozone Oct Ind. prod. 1 0.2 -0.3 US FOMC - Fed Funds % 0.5 0.25
of Dixons and Carphone Warehouse last halt the long-term decline in sales. Eurozone Oct Ind. prod. 2 1.2 1.7 US Nov Housing starts 5 1,140 1,060
India Nov CPI 2 5.33 5 US Nov Ind. prod. 1 0.1 -0.2
year. Investors expect increased total The Android-based phone is seen by India Nov WPI 2 -2.47 -3.81
sales and strong margins. 1.4 per cent and total group sales for the to be £105.7m in the period, compared some analysts as a last effort to increase THURSDAY
TUESDAY Brazil Nov Unemployment % 8.1 7.9
Second-quarter like-for-like sales half-year are expected to be £4.61bn, up with a loss of £20.0m in the first half last unit sales before selling the hardware Eurozone Dec ZEW econ. sent. n/a 28.3 Germany Dec IFO bus. climate 108.9 109
growth in the UK is forecast to come in at 38 per cent on last year. year. Aliya Ram business. Management has a sales target Germany Dec ZEW curr. cond. 54.1 54.4 Germany Dec IFO curr. cond. 113.4 113.4
But investors will be closely watching of 5m units. Germany Dec ZEW econ. sent. 15 10.5 Germany Dec IFO expectations 104.8 104.7
EARNINGS UK Nov CPI 1 -0.1 0.1 Russia Nov Unemployment % 5.6 5.5
Diary commentary from FT reporters. Data, unless its performance in Greece, where it owns Analysts expect slightly lower revenue UK Nov CPI 2 0 -0.1 UK Dec CBI ind. trends % -10 -11
otherwise stated, from Thomson Reuters. Company the popular Kotsovolos brand but where Dixons Carphone FY 28.00p (28.70p) than the $491m last quarter, a decline of UK Nov Input prices 2 -12.4 -12.1 UK Nov Retail sales 1 0.5 -0.6
announcements, collated by Thomson Streetevents,
capital controls have weighed on FedEx Q2 $2.53 ($2.14) about half year-over-year, driven by a UK Nov Output prices 2 -1.3 -1.3 UK Nov Retail sales 2 3 3.8
are of information publically available before last UK Oct ONS HPI 2 n/a 6.1 US Q3 Current account 3 -123-109.7
week. Results forecasts, from Thomson I/B/E/S, are discretionary spending. However, Greece decline in both hardware and services. US Nov CPI 1 0 0.2 US Week Initial claims 5 n/a 282
for fully diluted, post-tax EPS in local currency for accounts for only about 3 per cent of THURSDAY 17 Earnings before interest, tax, US Nov CPI (core) 1 0.2 0.2
the stated fiscal period. The comparable period of FRIDAY
the previous year is bracketed. Non-UK reporting
group sales, according to analysts. Investors will be looking for reassurance depreciation and amortisation are WEDNESDAY Canada Nov CPI 2 n/a 1
periods are broken by quarter: Q1, Q2, Q3, Q4. UK Results will not cover Black Friday or that Carnival can fill its ships when the expected at $83.2m, according to the Eurozone Nov HICP 1 -0.2 0.1 Canada Nov CPI - core 2 n/a 2.1
periods are designated: Q1, H1 (first half), Q3 and Cyber Monday but are expected to guide largest cruise line reports full-year consensus of forecasts, with a pre-tax Eurozone Nov HICP 2 0.2 0.1 Japan BoJ overnight rate % n/a 0.1
FY (full year). Eurozone Nov HICP - core 2 0.9 0.9
on performance over the discounting earnings. With record numbers of cruise loss predicted of $116m from a profit of Eurozone Dec Manuf. PMI 52.2 52.8
weekend. Barclays says that margins ships to hit the seas in 2016, Carnival has $21m in the first quarter. Daniel Thomas Eurozone Dec Services PMI 54 54.2 Mkt* = market consensus estimates. Prev*= previous actual
should prove resilient because costs were accelerated bookings at cheaper prices. Eurozone Oct Trade balance 3 n/a 20.1 Units*; 1 = % change on previous period, 2 = % change on same
EARNINGS UK Oct Average earnings 4 2.5 3 period in previous year, 3 = national currency bn, 4 = annualised
passed from promotions to suppliers. The cruise company, which takes one in UK Nov Claimant count % 2.3 2.3 quarterly % change, 5 = 000s, NSA=not seasonally adjusted,
Group profits before tax are expected every two cruisers on holiday each year, BlackBerry Q3 -$0.14 ($0.01) UK O U l % 53 53
THE AUTHORITY ON GLOBAL FUND MANAGEMENT | FINANCIAL TIMES | Monday December 14 2015
Brazil
Recession and
scandal take toll
In 2015, the world’s seventh-
largest economy slipped into
recession, unemployment
soared and Standard & Poor’s
stripped Brazil of its
investment-grade credit rating.
Its politicians and leading
businessmen have been
embroiled in a scandal
surrounding state-backed
Petrobras, the oil company, and
President Dilma Rousseff faces
impeachment proceedings.
As the chaos has taken hold,
fund managers have retreated
in droves — Paulo Whitaker/Reuters
PAGE 6
Largest ever investigation in Europe into the fees asset managers charge investors
Ireland launches fund fee probe
ATTRACTA MOONEY
The largest ever investigation in
Europe into the fees asset managers
charge investors will begin next year
amid widespread accusations of
overcharging within the fund man-
agement industry.
The financial watchdog in Ireland,
which oversees more than 6,000
funds, including 3,725 mutual funds,
is to examine whether the invest-
ment products offer “value for
money”.
A spokesperson for the Central
Bank of Ireland, the regulator, said:
fm
“In 2016, an area of focus will be fees
charged by Irish-domiciled invest-
ment funds. Value for money for the
end investor is an important part of
the central bank’s mandate to pro-
tect investors’ interests.”
Industry figures say the probe will
be a concern for asset management
companies, where profit margins
have already come under pressure
due to increasing demand from regu-
lators and consumers for lower-cost
products.
However, Mick McAteer, director
of the Financial Inclusion Centre, a
think-tank, said: “It is good news
that the Irish regulator is looking at
fees. EU investors [in funds] pay far
too much for inferior performance.”
Guillaume Prache, managing
director of Better Finance, a con-
sumer lobby group, added: “Overall,
fees are too high in Europe and still
not always transparent.”
Fund fees have been scrutinised in
recent years due to claims that asset
managers are charging investors
large sums for active management
despite closely following an index, a
practiceknown as“closettracking”.
It is understood the Irish regulator
is separately carrying out a review of
closet trackers, but its 2016 fund fee
probe will go further.
The investigation of Ireland’s $2tn
investment industry will initially
focus on total expense ratios, which
is a measure of the total cost of a fund
to the investor. It usually includes
the manager’s annual charge as well
as the cost of other services paid for
by the fund, such as fees paid to cus-
todians and auditors.
The Irish watchdog is looking for
continued on page 7
MPs urge
own pension
Nigerian pensions
Ghostbuster is part of
Chinelo Anohu-Amazu’s
job description
PAGE 4
fund to go
green
MADISON MARRIAGE
Twenty-six MPs across five political
parties in the UK have called on their
pension scheme to ditch fossil fuel
investments as the momentum
behind the divestment movement
accelerates.
Caroline Lucas, leader of the Green
party and its only MP, filed a motion
in September urging the trustees of
the £500m Parliamentary Contribu-
tory Pension Fund to evaluate the
risk of its investments in high-carbon
industries.
The motion also calls for the
scheme, which provides pensions for
retired MPs and ministers, to divest
from fossil fuel companies in areas
such as coal and oil.
Investors controlling $2.6tn of
assets have already made commit-
ments to cut back or sell out of hold-
ings in fossil fuel companies, includ-
ing Norway’s state pension fund, Axa,
the French insurance group, and Nor-
dea Asset Management, the largest
Nordic fund manager.
The reasons for divestment are
twofold: some investors believe they
have a moral responsibility not to
finance activities that lead to high
emissions of greenhouse gases, and
that forthcoming climate policies are
likely to make those activities unprof-
itable.
Ms Lucas said: “Divestment makes
sense from a financial and moral
point of view.”
2 | FTfm
INSIDE
Comment
The annual circus of
banks’ research on the
outlook for the year
ahead reveals some
awkward truths about
what analysts and
their analysis are for,
says Katie Martin
PAGE 8
View from the US
The US political system’s
Puerto Rican brain
freeze is finally thawing,
says John Dizard
PAGE 8
ETFs
Many active fund houses
are venturing into
exchange traded funds
PAGE 10
Brexit
Huw van Steenis and
Bruce Hamilton ask if
fears of a British exit from
the EU can be a bigger
risk to the valuations of
UK asset managers
than UK banks
PAGE 12
This is FTfm’s last edition
of 2015. The first edition
of 2016 will appear on
Monday, January 4.
fm
DECEMBER 14 2015
Editor Chris Newlands
Tel: +44 (0)20 7775 6382
e-mail: chris.newlands@ft.com
Deputy editor Madison Marriage
Tel: +44 (0)20 7873 3817
e-mail: madison.marriage@ft.com
Reporter Chris Flood
Tel: +44 (0)20 7873 3892
e-mail: chris.flood@ft.com
Reporter Sophia Grene
Tel: +44 (0)20 7873 4685
e-mail: sophia.grene@ft.com
Reporter Attracta Mooney
Tel: +44 (0)20 7775 6237
e-mail: attracta.mooney@ft.com
Production Jearelle Wolhuter
Tel: +44 (0)20 7873 4872
e-mail: jearelle.wolhuter@ft.com
Advertising manager
Rachel Padhiar
Tel: +44 (0)20 7873 3564
e-mail: rachel.padhiar@ft.com
FINANCIAL TIMES
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©The Financial Times Limited 2015.
Reproduction of the contents of FTfm in
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Times Limited
$20bn cost of hidden private equity fees
REGULATION
PE managers boosted
profits at expense of
investors, study finds
CHRIS FLOOD
Private equity managers have
extracted at least $20bn in hid-
den fees from clients over the
past two decades, boosting
their own profits at the
expense of end investors,
according to a new study.
The research by Ludovic
Phalippou, a finance professor
at the University of Oxford’s
Saïd Business School, is likely
to fuel the debate over private
equity fees, which are already
under examination by US reg-
ulators.
The Securities and
Exchange Commission issued
a warning in 2014 to the $3.5tn
private equity industry to
expect increased scrutiny after
finding numerous examples of
fees and expenses being
charged inappropriately to
investors.
Since then, Blackstone,
KKR, Fenway Partners, Clean
Energy Capital and Lincoln-
shire Management have all
been issued with fines and
penalties by the regulator.
Mr Phalippou and two co-
authors examined the
accounts of 592 companies
that were bought by private
equity managers between 1981
and 2013. They found that
$20bn was paid to private
equity managers by the com-
panies, reducing their value
when these businesses were
Brazil dooms Latin American funds to uncertain future
ATTRACTA MOONEY
Asset managers have taken an
axe to their Latin America
mutual funds over the past
five years on the back of out-
flows and poor performance,
casting a shadow on the
remaining products focused
on the region.
More than a quarter of
mutual funds offering inves-
tors in Europe and the US
exposure to Latin America
have been liquidated since
2010, according to figures
from Lipper, the data provider.
The assets managed in Euro-
pean-domiciled Latin America
funds have dropped more than
70 per cent in Europe since
NEWS
Calpers, the largest US
public pension fund, last
month disclosed for the
first time complete details
of performance fees
Max Whittaker/Reuters
‘The official expense
ratio reported by
investors can be
significantly
understated’
2010, to €7.5bn. US-domiciled
equivalents have suffered an
85 per cent drop in their asset
base to just $1.4bn, according
to Morningstar, the research
firm.
Funds focused on the region
have experienced outflows
every year since 2011, driven
by weak performance. Several
Latin American funds are
down 50 per cent over five
years, and the vast majority
have provided negative
returns over this period,
according to analysts.
While many investors have
already retreated from the
funds, the expectation is that
more outflows will follow, rais-
ing questions about the viabil-
sold or listed on the stock
exchange.
“Investors do not negotiate
on the hidden fees charged to
companies owned by private
equity managers. They can
negotiate a discount on the
management fee but they do
not negotiate on the content of
the contracts [known as mas-
ter services agreements] they
agree with private equity man-
agers,” said Mr Phalippou.
He added that the study was
not able to capture all the dif-
ferent types of hidden fees and
expenses, such as private
equity managers’ use of pri-
vate jets.
ity of the surviving Latin
America-focused products.
Jason Hollands, spokesper-
son for Tilney Bestinvest, the
UK investment adviser, said:
“Ultimately if investor demand
dries up and the outlook [for
the region] remains unattrac-
tive, some of these funds may
nolongerbe viable.”
Much of the poor perform-
ance has been driven by tur-
moil in Brazil, which domi-
nates the benchmark index.
Latin America’s largest econ-
omy slipped into recession
earlier this year and has been
hit by weak commodity prices,
business and political scan-
dals, and rising unemploy-
ment.
FINANCIAL TIMES Monday 14 December 2015
Private equity managers
often pay some of these hidden
fees back to investors via
reductions in annual manage-
ment fees, but Mr Phalippou
believes the reductions could
go further. “The official
expense ratio reported by
investors can be significantly
understated,” he said.
Calpers, the largest US pub-
lic pension fund, last month
disclosed for the first time
details of the performance
fees, known as carried inter-
est, that were paid to private
equity managers over the past
25 years.
Mr Phalippou’s analysis
Latin American funds have
experienced outflows every
year since 2011
Darius McDermott, manag-
ing director of Chelsea Finan-
cial Services, the fund research
group, said: “The currency [in
Brazil] has been decimated,
indicated that Calpers paid
around $2.6bn in hidden fees
on private equity investments
made between 1991 and 2014
on top of its $3.4bn bill for car-
ried interest. Around $1.3bn
was repaid to Calpers as
rebates against annual man-
agement fees.
Calpers said it has been
“rewarded appropriately” for
the risks taken with its private
equity investments. The
scheme will this week discuss
Warning shot
The Securities and Exchange
Commission issued a warning in
2014 to the $3.5tn private equity
industry to expect increased
scrutiny after finding numerous
examples of fees and expenses
being charged inappropriately
proposals to drop the bench-
mark employed to measure
the performance of its private
equity investments.
Eileen Appelbaum, senior
economist at the Center for
Economic and Polic y
Research, the Washington
think-tank, said: “If the bench-
mark is eliminated, private
equity managers will be able to
continue to collect outra-
geously high fees from the
retirement savings of public
workers without being judged
on whether their performance
warrants these bonuses. Tax-
payers and workers will be the
losers.”
the economy has been deci-
mated and the stock market
has been decimated.”
Simon Dorricott, senior ana-
lyst for manager research at
Morningstar, added: “For
flows into Latin America funds
to pick up, you need to see a
performance improvement
and that really hinges on Bra-
zil. When that will happen is
anyone’s guess.”
Fund managers with expo-
sure to Latin America have lit-
tle hope of a Brazilian recovery
in the near term. “We think the
recession is far from over,” said
Lajla Aganovic, portfolio man-
ager at Lombard Odier Invest-
ment Managers, the Swiss
asset manager.
FINANCIAL TIMES Monday 14 December 2015 FTfm | 3

NEWS

Asset managers pour billions into direct lending

INVESTMENT STRATEGY
European-based
groups move into
shadow banking
ATTRACTA MOONEY
Asset managers have raised
billions of dollars from inves-
tors to lend to companies as
fund houses step into an arena
traditionally dominated by
banks.
European-based fund man-
agers have $41bn ready to
deploy in direct lending deals,
twice as much as in 2012,
according to Preqin, the data
provider. This backs up sug-
gestions asset managers are
increasingly becoming so-
called shadow banks.
The fund management
industry has flocked to the
direct lending space in the
wake of rules introduced since
the financial crisis, which have
made it less attractive for
banks to loan to businesses to
the same degree they once did.
Fenton Burgin, partner in
the debt advisory practice at
Deloitte, the consultancy, said
investors struggling to achieve
strong returns amid low inter-
est rates are helping to drive
the growth of the sector.
Long-term institutional
investors are swapping the
liquidity of bonds for higher
returns by putting money into
private debt funds, he said.
Towers Watson, the consult-
ants, said its clients, typically
pension funds, have globally
allocated more than $7bn to
illiquid credit investment
strategies, which range from
direct lending to property
debt, over the past five years.
Chris Redmond, global head
of credit at Towers Watson
estimates around a third to
half of the assets deployed by
clients went to direct lending
deals. “We view [illiquid credit
investment strategies] as an
excellent opportunity for
investors with a tolerance for
illiquidity and a desire to
improve overall portfolio effi-
ciency,” he said.
Asset managers are
increasingly becoming
so-called shadow banks — PA
$441 bn
Assets in the direct lending
industry by the end of last year,
more than triple 2006’s figure
Shadow banking has come
under increased scrutiny in
recent years amid fears such
activities pose risks to finan-
cial stability. Mr Redmond
played down concerns about
the risks investors face from
direct lending and other forms
of illiquid credit strategies.
Mr Burgin said the direct
lending sector is growing
quickly. “The development of
direct lending as an alternative
asset class is ultimately where
we think the market will
develop over the next 12 to 18
months,” said Mr Burgin.
According to Deloitte, 61
direct loans were made during
the third quarter of this year in
Europe, up 14 per cent year on
year.
KKR, the private equity
group, has loaned more than
half a billion dollars to compa-
nies in Europe this year. A loan
to the Casual Dining Group,
which is behind the Café Rouge
chain of restaurants, is among
eight direct lending deals KKR
has made in the region this
year.
“This is the first year [direct
lending] has achieved a critical
mass in Europe,” Marc Cian-
cimino, KKR’s head of Euro-
peanprivatecredit,toldtheFT.
Last week, Hermes Invest-
ment Management, M&G
Investments and AIG Asset
Management signed an agree-
ment with Royal Bank of Scot-
land, the UK bank, to co-fund
loans of up to £100m.
Assets in the direct lending
industry have more than tri-
pled since 2006 to $441bn by
the end of last year, according
to figures from Brown Broth-
ers Harriman, the financial
services group, and Preqin.

C JPMorgan Asset Management has

Movers
& shakers
C Irshaad Ahmad is moving to Allianz
Global Investors in January as head of
institutional for Europe. Mr Ahmad
joins the €427bn asset management
arm of Allianz, the global insurer, from
Axa Investment Managers where he
was head of UK and Nordics since
2011.
Marie Le Dorner has joined the
Allianz Global Investors infrastructure
debt team as an assistant vice-
president, based in London. Ms Le
Dorner worked previously at Bank of
Tokyo-Mitsubishi UFJ.
C Manulife Asset Management has
appointed Wendy Lim as chief
executive of its operations in
Singapore, subject to regulatory
approval. Ms Lim previously served as
chief executive in Singapore for BNY
Mellon Investment Management.
Bonnie Lam has joined as head of
partnership development, wealth and
asset management in Hong Kong
from HSBC Global Asset Management
in Hong Kong.
Manulife has also hired Robert
Corbally as a managing director on
the global product team, based in
London. Mr Corbally was previously
with Standard Life Investments.
C Mark Webster has moved to
Acadian, the $70bn Boston-based
quantitative investment manager, as a
portfolio manager. Mr Webster joins
CCLA Investment Management.
appointed Claudius Weissbarth as
executive director of European client
strategy in the global real assets team.
Mr Weissbarth has moved from
BlackRock.
C Franklin Square Capital Partners,
Irshaad the $17bn Philadelphia-based
Ahmad alternative investments manager, has
hired Greg Bassuk as head of liquid
alternative strategies. Mr Bassuk
previously served as chief operating
officer of IndexIQ, an exchange traded
funds provider he co-founded and
sold to New York Life Investment
Management.
C Gaius Jones has joined Rathbones,
the £27.6bn UK investment manager,
Claudius as head of financial planning. Mr
Weissbarth Jones was previously chief executive
of Ashcourt Rowan Financial Planning.
C Andrew Newington has joined
Actis, the $7.6bn emerging markets
focused private equity manager, as
chief operating officer. Mr Newington
was previously a managing partner at
BC Partners.
C The £49bn Universities
Mark Superannuation Scheme has hired
Webster five analysts and a new associate for
its private markets team. Anna Barath
and Diogo Belo both moved from
Moody’s while Fabienne Trevere has
joined from HSBC. Hesham Hussein
previously worked at RBS while Tom
Kelly was at KGB, a family office.
Emma Singh, the new associate, joins
from BP Investment Management
where she was private equity
controller.
4 | FTfm
‘Ghosts
do not
have
biometrics’
CHINELO ANOHU-AMAZU
Nigeria’s pension regulator
has a no-nonsense view of
the value of reforms
CHRIS FLOOD
G
hostbuster is not a
requirement generally
included in the job
description of a financial
regulator.
But slaying ghosts has been an
important part of the role of Chinelo
Anohu-Amazu, director-general of
Nigeria’s pension regulator, the
National Pension Commission (Pen-
Com).
Indeed, payments to “ghost” (non-
existent) pensioners have been just
one of the ways corrupt officials have
long been defrauding the Nigerian
state.
But such practices are being elimi-
nated with the introduction of bio-
metric authentication, part of a com-
prehensive plan overseen by the reg-
ulator to verify Nigeria’s retirees.
“Ghosts don’t have biometrics,”
says Ms Anohu-Amazu, who has
worked for PenCom since it was
established under the 2004 Pension
Reform Act.
The act created a national contrib-
utory pension scheme to replace a
poorly managed defined-benefit sys-
tem that had accumulated a N2.3tn
($11.5bn) deficit.
Before the 2004 reforms were
passed, very few private sector
employees were enrolled in pension
schemes. Savings in private sector
schemes were also often stolen or
abused by trustees and fund manag-
ers, while officials in the public sector
pensions arena were frequently able
to withhold payments to retirees.
Ms Anohu-Amazu, who is a lawyer
by training and holds degrees from
the University of Nigeria and the Lon-
don School of Economics, says that
the 2004 reforms were seen as
“highly controversial” but the
changes have been a turning point for
the Nigerian pension system.
“The 2004 act has created an
Born 1973
Total pay Not disclosed
Education 1996 LLB, University of
Nigeria, Enugu Campus
1997 BL, Nigerian Law School
2000 LLM, London School of
Economics
Career 2002-04 Consultant for
private sector initiatives, as well as
non-governmental organisations
and public institutions, including
the Bureau of Public Enterprises,
Nigeria
2004-08 Pioneer commission
secretary and legal adviser,
National Pension Commission
(PenCom), Nigeria
2008-12 Legal commissioner,
PenCom
2012-14 Acting director-general,
PenCom
2014 to present Director-general,
PenCom
FACE TO FACE
entirely different landscape,” says the
42-year-old.
Fiona Stewart, a senior financial
sector specialist at the World Bank in
Washington, agrees Nigeria has done
a good job of improving the situation
for pensioners at a national level.
“Experience elsewhere suggests it
can be difficult to achieve scale and to
control costs through local initia-
tives,” she says.
Ensuring the security of the pen-
sions saved was one of the main goals
of the reforms.
Contributions are held by one of
four designated custodians and are
ringfenced from the 20 administra-
tors that pay pensions to retirees.
“Great care is taken to ensure that
the pension savings are invested in
secure vehicles.
“There has not been one single case
of fraud within the [post-2004] pen-
sion system,” says Ms Anohu-Amazu
with some pride, adding that her
resolve to pursue change and improve
the situation has been bolstered by
the opposition she has faced to the
reforms.
“I was told I was too young and was
asked why a lady should be involved
with such matters,” she says, reiterat-
ing that the regulator has a zero-toler-
ance attitude to wrongdoing.
She is very critical of those who see
no value in her no-nonsense
approach. “I don’t speak their lan-
guage and I never will,” says Ms Ano-
hu-Amazu, whose parents encour-
aged her to question authority from a
young age.
As a result of the reforms, 6.8m
Nigerians now have retirement sav-
ings accounts, while more than
N5.2tn has been accumulated in the
pension system.
Employers with three or more staff
members are required to enrol their
employees in the pension system and
to provide matching contributions.
The 2004 act required employers and
employees to each pay 7.5 per cent of
a salary into a pension.
Ms Anohu-Amazu says: “Nigerians
now see pension packages as an
important consideration within their
career choices.”
However, these arrangements do
not cover the many Nigerians who are
self-employed or work in “informal”
employment, as Ms Anohu-Amazu
calls it.
Her ambition is to see millions
more saving for retirement under a
FINANCIAL TIMES Monday 14 December 2015
National Pension
Commission (PenCom)
Established 2004
Assets under supervision N5.2tn
($26bn)
Employees More than 300
Headquarters Abuja, with six
regional offices across Nigeria
micro-pensions initiative that will be
launched next year. “The hairdress-
ers, tailors and market traders have
saved nothing,” says the director-gen-
eral.
PenCom is working with trade
unions to encourage pension saving
and to seek ways to address the needs
of non-unionised sectors.
Gerard Lyons, former chief econo-
mist at Standard Chartered, the bank,
said at a pension summit in Abuja in
October: “I am very impressed with
the reforms in Nigeria. The govern-
ment and PenCom have focused on
building the right foundations for
the pension system and all of the
ingredients are in place for further
expansion.”
Under a second pension reform act
passed in 2014, pension assets can
also be invested in Nigeria’s roads, rail
and power supply infrastructure,
which are badly in need of updating.
Additionally, permission to diversify
into property has been granted as
part of the 2014 legislation.
At the moment less than 1 per cent
of Nigeria’s pension assets are
invested in infrastructure, while just
5 per cent is held in property. The vast
majority of assets are invested in fed-
eral and state government bonds and
money market instruments.
“There will be a huge opportunity
for pension funds to play a more
active role in economic development,
helping to source the $15bn needed
annually to bring infrastructure up to
scratch,” says Ms Anohu-Amazu.
The federal government is plan-
ning to launch a $25bn infrastructure
fund, and regional authorities are
also working on projects in the hope
of attracting interest from both mul-
tilateral agencies and private sector
investors.
Growth in Nigeria’s gross domestic
product is expected to slow to around
4 per cent this year, mainly because of
the fall in global oil prices. But Ms
Anohu-Amazu remains upbeat about
the country’s prospects.
“I see Nigeria changing very rap-
idly. People are raising their game and
there is a wave of entrepreneurship,
in finance, music and acting,” she
says.
“Who would ever have thought
that there would be demand for cap-
puccino in Lagos?”
 Asset Management
et Management

et Management
6 | FTfm
Brazil
battered by
scandal and
recession
Fund managers retreat in droves as
the country’s investment outlook
deteriorates, finds Attracta Mooney
F
und managers that special-
ise in a single country usu-
ally find something positive
to say about it, even if it is in
the depths of a recession.
But not so for Brazil, the country
where portfolio managers, like local
politicians, businessmen and citizens,
have been left scratching their heads
about the nation’s economic and
political future.
Brazil is not the only emerging
market economy to have had a turbu-
lent time this year, but the sheer scale
of turmoil has been exceptional.
During 2015, the world’s seventh-
largest economy slipped into reces-
sion, unemployment soared and
Standard & Poor’s stripped Brazil of
its investment-grade credit rating.
Its politicians and leading business-
men have been embroiled in a scan-
dal surrounding state-backed Petro-
bras, the oil company and President
Dilma Rousseff faces impeachment
proceedings.
As the chaos has taken hold, fund
managers have retreated from Brazil
in droves. Although they see a small
number of bright spots, such as
exporters and parts of the fixed
income market, portfolio managers
also fear the impact of political and
economic instability on returns.
Lionel Bernard, who manages the
Equity Latin America and Equity
Brazil funds at Amundi, Europe’s
largest listed asset manager, says:
“The strongest conviction I have at
this point is that we will not have an
[economic] improvement until we
have a new political majority in Bra-
zil.”
The performance of Mr Bernard’s
Brazil fund has fallen 36.7 per cent in
the first 11 months of the year, mar-
ginally underperforming its bench-
mark.
During the third quarter, Brazil —
once regarded as one of the world’s
growth engines — suffered its sharp-
est contraction in growth since a new
gross domestic product calculation
system was introduced in 1996, a fall
of 4.5 per cent.
Some commentators suggest its
recession could turn into a depres-
sion. The country’s stock market has
plunged more than a quarter over the
past year.
“The economic and political back-
drop [in Brazil] is continuing to dete-
riorate with no clear resolution in
sight,” says Will Ballard, head of
emerging markets at Aviva Investors,
the UK asset manager.
Mr Ballard, like several other fund
managers invested in Brazil, includ-
ing Invesco Perpetual and Amundi,
has reduced his exposure to the coun-
try this year. Last year, 8 per cent of
Aviva Investors’ Emerging Market
Equity Income fund was invested in
Brazil; this has now dropped to 3.5 per
cent.
“The economy is in a terrible state,”
Mr Ballard says. “This is exacerbated
by paralysis at the political level.”
JPMorgan Asset Management has
also decreased its allocation to Brazil
by five percentage points this year,
says Sophie Bosch, Latin America
portfolio manager at the US fund
house.
Claudia Calich, manager of the
emerging markets bond fund at
M&G, the UK fund house, says: “It is
impossible to trade the daily noise
and headline risk [in Brazil].”
However, she says there are
“selected opportunities” in the coun-
try among exporting companies,
which have benefited from the depre-
ciation of the real. The value of the
local currency has plummeted by a
third this year.
Mr Bernard has also invested in
companies focused on exporting,
such as Suzano Papel e Celulose and
Klabin, both paper producers.
He adds: “A lot of sectors, such as
banking and utilities, have attractive
THE BIG PICTURE
‘The economy is in a
terrible state. This is
exacerbated by paralysis
at the political level’
Brazilian backlash
BTG investors pay price
of former head’s arrest
Petrobras was once the jewel in
Brazil’s corporate crown, but not
any more. The state-owned oil
company stands accused of
colluding with contractors to
inflate bids — with contractors
allegedly giving kickbacks to
Petrobras officials and politicians.
Leading businessmen and
politicians have been caught up in
the scandal, including André
Esteves, the billionaire banker
(pictured).
Mr Esteves, who built BTG
Pactual from a shell into Brazil’s
top independent investment bank,
was detained last month on
suspicion of attempting to
interfere with the Petrobras
investigation. Delcídio do Amaral,
a Brazilian senator, was arrested at
valuations right now, but we need
political stability and fiscal changes in
order to feel comfortable with the
domestic market.”
Investors believe political reform is
needed for Brazil’s investment out-
look to improve.
Dean New-
the same
time. Both
deny any
wrongdoing.
However, in
the wake of his
arrest, Mr Esteves
ceded control of BTG, which also
includes an asset management
division, to seven other partners.
The banker, who was born in Rio
de Janeiro and is estimated to be
worth more than $2bn, was
formally charged with obstruction
of justice last week. The bank’s
share price has fallen by half since
his arrest on November 25.
Eduardo Cunha, the speaker of
Brazil’s lower house who this
month started impeachment
proceedings against Dilma
Rousseff, the country’s president,
is also being investigated in the
Petrobras probe. He has been
charged with corruption and
money laundering, which he denies.
FINANCIAL TIMES Monday 14 December 2015
man, head of emerging market equi-
ties at Invesco Perpetual, says: “Until
a sense of political stability is
restored, there is a danger that com-
pany bosses may continue to delay
investment decisions.” The opening
of new factories will be put on the
backburner, he says.
Earlier this month, Brazil’s stock
market and currency strength-
ened on the news that the con-
gress was initiating impeachment
proceedings against Ms Rousseff.
She stands accused of fiddling the
public accounts.
Waj Hashmi, portfolio manager of
the Emerging Markets Equities fund
at Schroders, the UK investment
group, says: “In the near term, the
politics look quite murky and do not
help the investment case.”
Some argue that rather than push-
ing for an impeachment, politicians
should instead try to rescue the econ-
omy. “There is still no consensus on
whether [Ms Rouseff being
impeached] would be good or bad for
the Brazilian economy,” says Xavier
Hovasse, head of emerging equities at
Carmignac, the French asset man-
ager.
Other portfolio managers say
recent events are a good sign for Bra-
zil’s long-term outlook. The fact that
well-known politicians and business-
men, including the chief executive of
BTG Pactual, the investment bank,
FINANCIAL TIMES Monday 14 December 2015 FTfm | 7

THE BIG PICTURE

Brazil’s volatile stock market Ireland campaigns for greater fund fee
disclosure. She said the probe
A fund director who sits on
the board of several Ireland-
one of the worst-performing
industries consumers deal
Bovespa Index down a quarter since Sep 2014
65
probes should not just focus on the
total expense ratio, claiming
domiciled mutual funds, who
requested anonymity, ques-
with and a range of interven-
tions is needed to make this

60 fund fees this can represents less than 50

per cent of the true cost. It
tioned whether it was the “reg-
ulator’s business to look at
market work.”
Irish Funds, the local asset
often does not include per- fees”, suggesting European- management industry associa-
55 continues from page 1 formance fees and dealing wide rules already address tion, declined to comment on
50
“outliers”, funds that have very costs, she said. issues such as fee transpar- the probe.
high total expense ratios. They Fund professionals in Ire- ency. The financial regulator in
45 will then be examined more land have suggested the cen- “I am not sure it is up to the Luxembourg, the largest dom-
closely. It is not clear how long tral bank’s investigation is regulator to police what is icile of funds in Europe, did not
40 the investigation will take. unnecessary and smacks of good value,” he said. respond when asked if it also
Sep 2014 2015 Dec Gina Miller, partner at SCM “interference with the free However, Mr McAteer said: planned to investigate fund
Private, the wealth manager, market”. “The investment industry is fees.
Source: Thomson Reuters Datastream

Asset Management

Brazilian politicians have been arrested over the Petrobras

and leading scandal shows the judicial system
businessmen have works. This is not always the case in
been embroiled in a emerging market countries, says Mr
scandal surrounding Hashmi.
Petrobras, the state- What portfolio managers do agree
backed oil company, on is that steps to boost the economy
and President Dilma need to be taken soon. Mr Bernard
Rousseff faces says: “Investment is stuck. Consump-
impeachment tion is stuck. Both corporate and con-
proceedings — Sergio sumer spending are reaching new
Moraes/Reuters; Evaristo Sa/AFP
lows, so something has to happen.
Otherwise the country is heading to a
situation similar to Argentina [which
defaulted in 2014], which I don’t
think will be allowed to happen.”
Mr Bernard hopes a “sense of
urgency” in 2016 will spur the Brazil-
ian government into action. But most
fund managers expect the economy
‘Investment to continue contracting.
“We think the recession is far from
is stuck. over,” says Lajla Aganovic, who runs
Consumption the Emerging Consumer fund at
Lombard Odier, the Swiss asset man-
is stuck. Both ager.
corporate and Ms Bosch remains hopeful about
the country’s long-term outlook. “We
consumer believe Brazil is in an economic reces-
spending are sion, not an economic crisis. It is the
political situation that is in crisis and
reaching [that has] deteriorated confidence,
new lows, so stalled private investment and
increased market volatility,” she says.
something “But under our eyes, we like what we
has to happen’ see. We are very optimistic in the long
term.”
8 | FTfm
Compliments of the pointless predictions season
COMMENT
Katie
Martin
T
he annual circus of
banks’ research on the
outlook for the year
ahead reveals some awk-
ward truths about what
analysts and their analysis are for.
Just as shops seem to start hanging
up the tinsel and playing “Happy
Xmas (War is Over)” on a loop with
“Frosty the Snowman” earlier and
earlier every year, banks are pumping
out their “top themes for the year
ahead” well before most normal peo-
ple have started arguing over which
in-laws to visit for Christmas dinner.
The reports have been clogging up
inboxes since late November.
Even those of us who derive a guilty
pleasure from reading sellside
research are finding this hard work.
For banks, timing is everything.
Nobody wants to cross the threshold
into sending out “year aheads” in the
The US’s Puerto Rican brain freeze is finally thawing
T
he US political system’s
Puerto Rican brain
freeze is finally thawing.
The “tell” from the
municipal bond market
was not in a rise in the prices of the
commonwealth’s bonds, which did
not change that much, but in the
gradual resumption of trading.
Starting the morning after the Sen-
ate Republicans published their 159-
page Puerto Rico Assistance Act of
2015, Commonwealth general obliga-
tion bonds began to be bought and
sold in multimillion-dollar lots,
rather than the pocket-change
amounts that had been exchanged
earlier this month.
This is not to say that there will be a
law passed through both houses of
Congress and signed by the president
before the end of the year. The Con-
gressional Democrats will want any
Puerto Rican deal to insert some lan-
guage with their party’s watermark.
The White House will want to take
some credit, as well as the arrange-
second week of November. That is the
banking equivalent of shops getting
the baubles out before Halloween.
But there is still a clear first-mover
advantage.
With the best will in the world,
almost no one can read all these
reports. Many run to hundreds of
pages and, assuming that each
decent-sized investor uses, say, five
banks, that quickly stacks up. And it
is tricky enough trying to figure out
what is going on now, let alone read-
ing best guesses on what might hap-
pen next year.
But two sets of research are more
likely than others to catch the eye: the
early stuff and the reports from Gold-
man Sachs. (Rightly or wrongly,
Goldman is still able to draw a crowd
like no other bank, to the intense irri-
tation of analysts and economists
everywhere else.)
Unless a bank has a truly revolu-
tionary take on what is going to hap-
pen next then it has to get out there
early. (Goldman doubles down on
spoiling the party for the other banks
by reliably getting its year-aheads out
first.) The first big report that spells
out why the euro is heading well
below parity with the dollar next year
ment of the signing ceremony. The
pattern of a deal, though, is now visi-
ble, described in tortuous legislative
terms.
The Republican senators involved
in writing the proposed law are the
madmen beloved by camera opera-
tors and talk-show hosts. These are
grey, muddy workhorses such as
Orrin Hatch, Chuck Grassley and Lisa
Murkowski.
They will make way for Democratic
colleagues who will demand the
credit for compromises, and for
House Republicans who will stand up
for their chamber’s honour.
I have gone over the Senate bill,
reading some parts and scanning oth-
ers. Much of it concerns detailing
actuarial assumptions for calculating
pensions (a breakthrough for Puerto
Rico), and the rather sweeping infor-
mation collecting powers that are
proposed for a “Puerto Rico Financial
Responsibility and Management
Assistance Authority”.
You (and your lawyer) would call
this thing an official receiver for the
commonwealth. Of course the sena-
tors, who are not competing for air-
time with Donald Trump, the US
presidential candidate, collectively
say: “No, no, no . . . of course not.”
As Senator Murkowski says, in part
of the Finance Committee’s joint
statement: “The bill strikes an appro-
OPINION
will spark a conversation and grab
some press coverage. The second and
third will not.
And really, variation among ana-
lysts is quite nuanced. The Fed is
Goldman Sachs doubles
down on spoiling the
party for the other banks
by reliably getting its
year-aheads out first
priate balance between respecting
Puerto Rico’s sovereignty and provid-
ing a firm backstop to ensure the nec-
essary financial reforms are imple-
mented.”
Oh, of course, Puerto Rico’s sover-
eignty, or, as the joint statement also
mentions, its “autonomy”.
That’s interesting, because on page
150, line 9, section 362, the law says:
“This title (the bill) pre-empts all
Federal, State, and local laws relating
to the Commonwealth, any public
corporation, or any process for estab-
lishing or reviewing rates, fees, taxes,
or other charges.”
Now to my untrained eye, that
sounds as though Puerto Rico is with-
out doubt subject entirely to the
authority of the federal government,
as in Congress and the president.
This is where those euro think-tank
crews are rotating their turrets in
vain. Puerto Rico is not Greece. The
IMF has nothing to do with Puerto
Rico, and there are no real lessons for
the euro area or international debt
restructuring.
The proposed law’s “authority”
gets to live inside the Puerto Rican
government, and can use courts to get
answers throughout the US.
On the other hand, even though
they are Republicans, and make sure
we understand that this is not a “bail-
out”, there is $3bn for Puerto Rico and
going to hike soon, the European Cen-
tral Bank is not. Pretty much all the
big macro themes revolve around
that. But nobody wants to look like a
copycat. A rival bank releasing a view
very similar to yours a day before
your report lands is a nightmare for
these poor scribblers.
Such is the urge to be early and/or a
bit radical that it has been known for
banks to be proved wrong on their
“top trades for next year” before that
year has even started. The potential
for red faces is just huge.
The pattern of a deal is
now visible, described in
tortuous legislative terms
some social security tax relief for the
island’s workers.
The good news for Democrats is
that an amended version of this law
will get the problem off everyone’s
campaign agenda for next year. No
Caribbean island terrified by Jurassic
Park-like rampaging monsters.
Later, when the authority is really,
really mean to some Puerto Rican
politicians, they can blame those
Republicans who insisted on such
inflexible provisions before they
would give milk to infants.
Speaking of being eaten by mon-
FINANCIAL TIMES Monday 14 December 2015
And yet, the powers that be really
crank up the pressure on analysts to
put out those shiny reports. Some
resort to doing this in the form of a list
of bombshell-but-very-unlikely “tail
risks” that could upend the financial
system. Think “Saudi could drop its
currency peg” (thanks for that one,
Bank of America Merrill Lynch) or
“Alien invasion” or “Hey, what if the
ECB actually hikes?” (OK, that last
one is silly).
What is the point of all this?
Nobody reads it all, and it often serves
as a way for economists to skewer
themselves, against their will, on pre-
mature predictions that turn out to
be rubbish. Plus, everyone misses the
big stuff. Did anyone warn that the
Swiss currency policy would collapse
at the start of this year? Anyone?
Part of the rationale for this grue-
some exercise is, of course, publicity.
Sure, analysts provide real value to
favoured clients, particularly in one-
on-one brainstorming meetings. But a
lot of this is a shopfront exercise. Still,
it pays better than academia and, in
any case, in good times or bad, ana-
lysts are generally too useful to fire.
Katie Martin is deputy editor of FastFT
sters, did I mention the municipal
bond insurance companies? There
can be little doubt that they will be
the biggest losers here, but then their
stock prices and intransigent negoti-
ating positions would have told you
that already.
The commonwealth bondholders
whose principal and interest pay-
ments they have guaranteed will get
paid in the end, but the holding com-
panies for the insurers will have their
ability to write new business
restricted by the losses.
Contrary to the standard “narra-
tive” about Puerto Rico, the hedge
funds involved with Puerto Rico will
be relieved to take a haircut and settle
with the authority or anyone else.
This was not a place for them to make
a lot of money by directing a restruc-
turing.
Some bond people think the
Supreme Court’s liberals will seek to
uphold the powers of the common-
wealth. I doubt it. The real “liberal”
position would be to rule that it is up
to Congress to fix the problems of this
colonial possession.
Eventually, Puerto Rico will be suc-
cessfully restructured, with bond
haircuts and better administration.
Then it will probably be welcomed as
a state. This supposed intermediate
status as a “commonwealth” has cre-
ated far too much moral hazard.

‘Cannibal’ ETFs embraced by active fund houses
EXCHANGE TRADED FUNDS
Goldman, Franklin
and Legg Mason
venture into passive
MADISON MARRIAGE
Over the past decade many
active fund houses avoided the
rapidly expanding exchange
traded fund industry due to
fears they would cannibalise
their own businesses.
Some are now changing tack.
Goldman Sachs Asset Man-
agement, Franklin Templeton
and Legg Mason are the latest
big investment companies
venturing into ETFs, which
give investors cheap exposure
to bond and equity markets by
passively tracking an index.
The interest in ETFs marks a
significant departure from the
days when many active fund
houses were afraid to launch
passive funds over concerns
this could hurt sales of more
expensive active alternatives.
Active fund managers also
had concerns about breaking
into the intensely competitive
ETF market, where Black-
Rock, State Street and Van-
guard collectively account for
more than two-thirds of assets
in the $3tn industry.
In Europe, where there are
40 ETF providers, the five
largest companies account for
80 per cent of the market.
BlackRock runs nearly half of
industry assets, according to
McKinsey, the consultancy.
But the sales momentum
behind more sophisticated
ETFs, which play on the
strengths of traditional fund
companies and attempt to beat
the market, has turned the
heads of those previously
uninterested.
Philip Koch, head of McKin-
sey’s asset management prac-
tice, says: “Traditional active
managers can no longer
neglect the trend [of institu-
tional investors allocating bil-
lions of dollars to ETFs].
“The big question we get
from clients is to what extent it
is too late [to enter the ETF
NEWS
opportunity to do that again.”
Can Goldman catch up with
BlackRock, which runs $1.1tn
of ETF assets? “That is defi-
nitely the goal — to be a big ETF
provider and to take market
share,” says Mr Kelly. “Nothing
is off the table. The time is right
to deliver more sophisticated
[ETF]strategies.”
Last month Franklin Tem-
pleton hired Patrick O’Connor
as its first head of ETFs. Mr
O’Connor joined the US fund
company from BlackRock, the
world’s largest ETF provider,
where he helped set up iShares
Goldman is particularly industry], or is there an oppor- has recently hired a team of 10 in 1999.
bullish about ETFs tunity to build up scale? The ETF specialists, and plans to Legg Mason hired two exec-
Peter Foley/Bloomberg
answer is that [fund compa- launch another three smart- utives from Vanguard, the
nies can tap] new sources of beta ETFs next year, as well as world’s second-largest ETF
growth with ETFs.” a range of ETFs that replicate provider, earlier this year and
Goldman is particularly hedge fund strategies. has applied for permission to
⅔ 80 % bullish about its ability to take Tony Kelly, who joined Gold- launch four smart-beta ETFs.
Proportion of Percentage of on the incumbents. The US man as head of ETF product The expectation is more
assets in the European bank has launched three so- development in June from fund companies will put com-
$3tn ETF market called “smart beta” ETFs, iShares, BlackRock’s ETF arm, petitive fears to one side and
industry accounted for
accounted for by five largest which try to beat the market says: “It was a lot of fun being join a handful of active houses,
by BlackRock, companies cheaply by using sophisticated involved in iShares from the including Pimco, Man Group
State Street (out of 40 indices, since September. beginning and watching that and Ashmore, that have
and Vanguard providers) The $1.2tn asset manager business grow. [I have] the already pushed into ETFs.
12 | FTfm
Markets got used
to the monetary
medicine
THE LAST WORD
James
Mackintosh
W
hen my 11-year-old
son beat me at the
board game Risk the
other day — march-
ing into Kamchatka
and Central America — I once again
considered the nature of risk. My low-
risk defensive strategy would surely
have won in the long run. His forces
were thinly spread, but met the vic-
tory conditions: he took a big risk,
and was rewarded.
Investors long ago embraced the
idea that more risk brings higher
rewards. But how to measure risk?
The finance industry chose volatility,
concluding that assets with prices
which move around more should go
up more. Even finance theorists
accept that real risk includes perma-
nent loss and operational or political
dangers that cannot be quantified,
but risk models ignoring these truths
have been widely adopted anyway.
Constructing a portfolio becomes a
matter of combining assets that tend
to move differently in order to max-
Brexit risk a chance for industry to engage in eurozone recovery
VIEWPOINT
Huw van Steenis and
Bruce Hamilton
C
ould rising fears of a Brit-
ish exit from the Euro-
pean Union be a bigger
risk to the valuations of
UK asset managers than
UK banks? This could be one of the
big surprises for 2016.
Britain’s fund management indus-
try has been a huge beneficiary of the
single market. Take Ucits funds,
Europe’s mutual fund umbrella: cre-
ated 30 years ago, they are now the
gold standard for retail investors,
with more than €8tn of assets under
management.
The UK’s fund management indus-
try accounts for more than a third of
assets managed in Europe. A key
imise possible returns while minimis-
ing overall volatility. The most useful
assets in this model are those that
move in different directions. Buying,
for example, bonds means more
higher-risk, higher-return equities
can be added within the same “risk
budget”, because bond prices tend to
move inversely to share prices.
Here’s the difficulty: bonds tend to
move in the opposite direction to
shares. To be precise, bonds have
moved in the opposite direction to
shares (yields and shares moved in
the same direction) since about 1998.
Before that, for more than a decade,
bond and share prices moved in the
same direction.
This does not matter to the calcu-
lating machines that spit out the
numbers for the risk budget, because
they do not look at data that old.
What matters is the correlation in
recent years, and it has been, if not
stable, pretty consistently positive.
Before getting into the details of the
big problem there are some smaller
problems those who rely on risk
budgeting should think about. The
first: volatility is not stable. The vola-
tility of developed world equities cal-
culated over a fairly typical rolling
three and a half year period ranged
from a low of 10 per cent to a high of
aspect of this growth has been UK
companies’ ability to “passport” their
funds into Europe as EU members.
The benefits to the UK flow well
beyond the City, with many jobs based
in Edinburgh, Leeds and Glasgow.
Our base case is that the UK’s fund
industry should continue to prosper,
whether in or out. Skilled workforces
and critical mass give the UK a strong
competitive edge that would make it
difficult to dislodge. But what if this
assumption is wrong?
With the odds of Brexit in the polls
close to one in three, according to
Morgan Stanley research, fund man-
agers need to explore the alternative
scenarios. Brexit could raise ques-
tions about the ability of UK-based
groups to sell retail funds elsewhere
in Europe.
The call for protectionism is liable
to come not only from those chancel-
leries keen to enjoy the tax revenue
and skilled jobs from a vibrant asset
management sector, but also those
OPINION
With the Fed poised to raise rates, it is time to re-examine the
assumptions behind risk calculations — Andrew Harrer/Bloomberg
20 per cent each decade since 1970,
and sometimes more, according to
Toby Nangle, co-head of multi-asset
at Columbia Threadneedle, the US
fund house.
Much worse than the lack of stabil-
ity is the problem of which number to
use. Weekly volatility over the past
180 weeks for world stocks is more
than 13 per cent if worked out on
Investors long ago
embraced the idea
that more risk brings
higher rewards. But
how to measure risk?
looking to protect domestic banking.
The European Central Bank’s dan-
gerous experiment with negative
deposit rates poses significant risks.
As the ECB policy is a disincentive for
banks to hold deposits, those institu-
tions, controlling three-quarters of all
fund distribution in Europe, will be
under pressure to find other sources
of fee income. Asset and wealth man-
agement are likely to be top of the list.
Brexit could affect distribution,
competitiveness, legal structures and
currency risk for asset managers.
Distribution costs may rise if the
UK were not a European Economic
Area member following Brexit, and
the UK would need to renegotiate
with each country to retain access to
EU markets in financial services.
We suspect “grandfathering”
arrangements would mean existing
UK or European investors in Ucits
funds would not need to be segre-
gated, but there could be a challenge
to new funds. In practice, UK-based
Mondays or Tuesdays. On Thursdays
it is less than 11 per cent. Which
number is right? All, and none. But
the risk budgeting machine needs to
pick one — and most people are not
even aware there is a difference.
Back to the bigger problem. A port-
folio built on the idea of keeping vola-
tility under control by using bonds as
well as equities relies on them contin-
uing to move in opposite directions. If
their prices move in the same direc-
tion, the overall volatility of the port-
folio will suddenly shoot up, and
break the risk budget. Fund manag-
ers will be advised — or instructed —
by risk managers to cut back risky
assets, most probably by selling
shares.
asset managers would seek to estab-
lish EU-based management compa-
nies to circumvent this risk.
Companies may need to move
some investment management jobs.
More significant disruption and costs
could be incurred if investment man-
agement of EU-based products could
no longer be delegated back to the
UK, as this could require separately
capitalised EU subsidiaries and a
bulking-up of EU-based staff.
Critical here would be the level nec-
essary to satisfy country authorities in
the EU that the management com-
pany would have sufficient “sub-
stance” not to be a mere “letterbox”
entity. If the EU drew the line more
tightly than it does for Swiss compa-
nies today, it would have a significant
bearing on the level of resourcing
required in the new EU-based author-
ised management company. But even
if the UK could gain Swiss terms, there
would probably be additional transac-
tioncosts,affectingcompetitiveness.
FINANCIAL TIMES Monday 14 December 2015
The danger of bond-equity correla-
tions changing was highlighted by
this month’s disappointingly small
rate cut from the European Central
Bank, when shares and safe German
bonds sold off together.
“The few episodes where we have
had central banks not being as
accommodative as people wanted
them to be have caused correlation
shocks,” says Pierre Sarrau, chief
investment officer for multi-asset
strategies at BlackRock, and a former
risk manager. “Because markets got
so used to the [monetary] medicine,
every time they take the medicine off
there is one of these episodes.”
Mr Sarrau is using derivatives that
pay out only if both bonds and shares
fall together, known as “worst of
puts”, in an effort to protect against
“correlation shocks”. Because they
are seen as unlikely to pay out, and
then not much, they are very cheap.
Still, Mr Sarrau sees the danger
mainly as a short-term one of short,
sharp shocks, not a longer-term
switch in the equity-bond correla-
tion. He thinks central banks remain
ready to respond to market troubles,
and equities and bonds will stay nega-
tively correlated as a result.
Not everyone agrees. Bruno
Crastes, chief executive of H2O Asset
Management, fears the correlations
could move more drastically. He
points to the correlation reversal dur-
ing the 2013 taper tantrum as a prece-
dent for higher rates.
With the Fed poised to raise rates
for the first time in almost a decade
this week, it is time to re-examine the
assumptions behind risk calcula-
tions, at the very least. Next time I
play my son, I certainly will.
James Mackintosh is the
FT’s investment editor
The severity of the repercussions
would depend on the shape of post-
Brexit trading arrangements. Every-
thing would hang on the negotiation.
It is difficult for asset managers to
do any meaningful contingency plan-
ning, but engaging early with the EU,
to show UK fund management’s rele-
vancetorebootingtheeurozone’slack-
lustre recovery, is a good place to start.
Supporting European commis-
sioner Lord Hill’s Capital Markets
Union initiative to channel more mar-
ket-based savings to eurozone compa-
nies is important — and UK fund man-
agers have much to offer. If the risks of
Brexit encourage asset managers to
engage more in helping build a more
prosperous EU, there may be a silver
lining to an ominous storm cloud.
Huw van Steenis, World Economic
Forum Global Agenda Council member,
and Bruce Hamilton are managing
directors at Morgan Stanley and recently
co-authored “10 Surprises for 2016”
FINANCIAL TIMES Monday 14 December 2015 FTfm | 13

FTfm

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Compiled with the assistance of the IMA. The
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Share Classes: Separate classes of share are
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Single price: Based on a mid-market valuation Funds mainly made up of equities normally by the managers/operators. Scheme
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Time: The time shown alongside the fund price set at the most recent valuation. Fridays.
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The symbols are as follows: ✠ 0001 to 1100 pricing basis. The managers/operators must risk analytics on the funds within these pages
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Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield

Artemis Global Emg Mkts I GBP Dist 76.80 - -1.82 - Far East $ 685.08 - -10.35 0.00 Glb Resources A GBP Inc H £ 10.38 - -0.03 0.37 Global Equity Inc 152.57 154.25 -1.15 4.31

Artemis Global Energy R Acc 20.57 21.82 0.01 0.00 High Yield Bond A GBP Hedged Inc H £ 6.14 - -0.01 7.10 Global Equity Acc 224.59 227.08 -1.71 -
ACPI Global UCITS Funds Plc (IRL)
Artemis Global Growth R Acc 177.25 187.00 -1.82 0.81 Hong Kong China A GBP Inc £ 564.81 - -7.99 0.59 UK Equity Inc 147.50 148.98 -1.49 4.05
www.acpishard.com
Atlantis Investment Management Ltd (IRL)
Regulated Artemis Global Income R Acc 93.52 98.77 -0.54 4.09 India Fund - Class A GBP Inc £ 13.45 - -0.12 0.00 UK Equity Acc 220.09 222.30 -2.23 -
2nd Floor, 13 St Swithin's Lane, London EC4N 8AL
ACPI Emerging Mkts FI UCITS Fund USD A $ 107.69 - -0.49 0.00
Artemis Global Income R Inc 75.30 79.54 -0.44 4.26 www.atlantis-investmenet.com, Tel: 0207 877 3377 Latin America A USD Inc H $ 25.15 - -0.64 0.23 Fixed Interest Inc 162.33 162.98 0.42 3.96
ACPI Global Credit UCITS Funds USD A $ 13.96 - -0.01 0.00 Regulated
Artemis Global select R Acc 70.62 74.52 -0.41 0.00 MENA A GBP Inc F * £ 11.64 - -0.15 0.66 Fixed Interest Acc 497.38 499.37 1.27 -
Atlantis China Fund $ 6.44 - 0.00 0.00
ACPI Global Fixed Income UCITS Fund USD A $ 152.05 - -0.12 0.00
Algebris Investments (IRL) Artemis High Income R Inc 77.42 82.48 -0.12 5.83 Property Fund Inc 133.46 137.93 0.16 6.51
Regulated Atlantis China Healthcare Fund $ 2.01 - -0.02 0.00
Q ACPI India Fixed Income UCITS Fund USD A $ 9.89 - 0.02 -
Artemis Income R Inc 198.14 210.04 -1.99 4.22 Property Fund Acc 234.22 242.07 2.73 -
Algebris Financial Credit Fund - Class I EUR € 132.49 - -0.75 0.00 Atlantis Japan Opportunities Fund $ 2.52 - 0.03 0.00
ACPI India Fixed Income UCITS Fund USD A3 $ 84.50 - 0.14 0.00 Baring International Fd Mgrs (Ireland) (IRL)
Artemis Income R Acc 337.90 358.20 -3.39 4.10
Algebris Financial Income Fund - Class I EUR € 118.71 - -0.69 0.00 Atlantis Asian Fund $ 6.18 - 0.02 0.00 Regulated
ACPI International Bond UCITS Fund USD A $ 17.76 - -0.06 0.00
Artemis Monthly Dist R Inc 61.88 65.66 -0.19 4.61 China A-Share A GBP Inc £ 5.70 - 0.14 0.00
Algebris Financial Equity Fund - Class B EUR € 97.93 - -1.47 -
CCLA Fund Managers Ltd (UK)
Artemis Pan-Euro Abs Ret GBP 112.82 - -0.24 -
Algebris Asset Allocation Fund - Class B EUR € 100.00 - -0.16 - Senator House 85 Queen Victoria Street London EC4V 4ET

AXIOM
Artemis Strategic Assets R Acc 71.96 76.20 -0.47 0.00 Property & Other UK Unit Trusts
ACPI Select UCITS Funds PLC (IRL)
Barings (Luxembourg) (LUX) COIF Charity Funds (UK)
Regulated Artemis Strategic Bond R M Acc 83.56 88.71 -0.05 4.04
ALTERNATIVE INVESTMENTS FCA Recognised Investment Inc 1217.02 1230.48 -29.02 3.62
ACPI Balanced UCITS Fund USD Retail $ 13.85 - -0.06 0.00
Alken Asset Management (LUX) Artemis Strategic Bond R M Inc 53.76 57.07 -0.02 4.12 Russia A GBP Inc F £ 24.81 - 0.08 0.00
61 Conduit Street, London, W1S 2GB Investment Acc 11719.74 11849.37 -279.42 -
ACPI Balanced UCITS Fund EUR Retail € 10.45 - -0.04 0.00
Artemis Strategic Bond R Q Acc 83.65 88.80 -0.04 4.10
www.alken-am.com Ethical Invest Inc 187.18 189.25 -4.80 3.73
ACPI Balanced UCITS Fund GBP Retail £ 10.57 - -0.05 0.00
Regulated Artemis Strategic Bond R Q Inc 53.96 57.29 -0.03 4.18
Axiom Alternative Investments (FRA) Ethical Invest Acc 240.97 243.64 -6.19 -
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Alken European Opportunities € 211.29 - -0.72 0.00 BlackRock (JER)
Artemis UK Growth R Acc 449.25 475.83 -4.26 0.54 1 Conduit Street - 4th floor - London W1S 2XA
Regulated Global Equity Inc 142.60 144.18 -4.40 4.41
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - Alken European Opportunities £ 121.87 - -0.60 0.00 www.axiom-ai.com Tel: +44 330 822 0374
Artemis UK Smaller Cos R Acc 1146.03 1234.96 -5.56 0.48 BlackRock UK Property £ 41.21 - 0.17 3.37
Regulated Global Equity Acc 211.57 213.91 -6.54 -
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Alken Absolute Return € 144.32 - -0.51 0.00
Artemis UK Special Sits R Acc 514.99 547.68 -2.84 1.63 Axiom Contingent Capital € 1029.55 - -1.31 - Blackrock UK Long Lease £ 1071.52 - 0.97 0.00
Fixed Interest Inc 133.70 134.23 -1.07 4.14
ACPI Horizon UCITS Fund $ 12.91 - 0.00 0.00 Alken Absolute Return £ 117.17 - -0.41 0.00
Artemis US Abs Ret I Acc 108.78 - 0.21 0.00 Axiom Contingent Capital £ 1033.85 - -1.39 - BLK Intl Gold & General $ 3.85 4.07 -0.02 0.00
Fixed Interest Acc 766.58 769.66 -6.15 -
Alken Small Cap € 189.78 - -1.22 0.00
Artemis US Equity I Acc 114.35 - -0.16 0.28 Axiom Equity $ 872.49 - -4.72 -
Property Inc 114.67 118.52 0.08 5.79
Artemis US Select I Acc 116.44 - -0.10 0.12 Axiom Equity € 915.46 - -5.08 0.00
Abbey Life Assurance Company Limited (UK) Property Acc 248.62 256.95 2.77 -
BONHOTE
100 Holdenhurst Road, Bournemouth BH8 8AL 0845 9600 900 Artemis US Select I Inc 104.00 - -0.09 - Axiom Obligataire $ 1783.52 - -1.45 0.00
Other International Funds Local Authorities Property Fd (LAMIT) (UK)
additional fund prices can be found @ www.abbeylife.co.uk
Artemis US Smlr Cos I Acc 118.46 - 0.17 0.00 Axiom Obligataire € 1780.77 - -1.33 0.00 Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6695.00 - -30.00 2.26 Property 274.76 295.14 2.73 4.81
Insurances
Life Funds Artemis US Ex Alpha I Acc 122.37 - -0.33 0.14 Axiom Obligataire £ 1792.56 - -1.48 0.00 Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9791.00 - 139.00 0.93
Prop. Acc. Ser 2 1565.10 1647.50 -1.00 -

Selective Acc. Ser 2 1565.30 1647.70 -4.60 - CG Asset Management Limited (IRL)
Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland
American Ser. 4 1712.90 1803.10 -4.60 - Allianz Global Investors GmbH(1200) F (LUX) Artisan Partners Global Funds PLC (IRL) BLME Asset Management (LUX) Braemar Group PCC Limited (GSY)
FCA Recognised Regulated 00 353 1 434 5098
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland BLME Sharia'a Umbrella Fund SICAV SIF
Custodian Ser. 4 492.20 518.10 -0.70 - FCA Recognised
Allianz Best Styles Global Equity £ 105.37 105.37 0.00 - Tel: 44 (0) 207 766 7130 Regulated UK Agricultural Class A £ 1.27 - 0.01 0.00
FCA Recognised Capital Gearing Portfolio Fund Plc £ 26930.14 26930.14 27.88 0.62
Equity Ser. 4 545.30 574.00 -2.30 - Income Fund - Share Class A Acc $ 1135.33 - -0.15 0.00
Allianz Global Fundamental Strategy £ 104.86 104.86 -0.28 - UK Agricultural Class B £ 1.39 - -0.02 0.00
Artisan Partners Global Funds plc CG Portfolio Fund Plc
European Ser 4 561.20 590.70 -2.20 - Income Fund - Share Class G Acc £ 1076.13 - -0.14 0.00
Allianz Global Small Cap Equity £ 108.83 108.83 -0.31 - Artisan Emerging Markets I USD Acc $ 6.70 - -0.03 0.00 Student Accom Class B £ 0.55 - -0.17 0.00 Real Return Cls A £ 166.16 166.16 -0.47 1.76
Fixed Int. Ser. 4 892.40 939.40 -2.00 - Gl Sukuk Fund - Share Class A Acc $ 1224.70 - -0.90 0.00
Artisan Global Equity Fund Class I USD Acc $ 14.45 - 0.00 0.00 Dollar Fund Cls D £ 129.09 129.09 -0.79 1.65
Intl Ser. 4 432.70 455.50 0.20 - Gl Sukuk Fund - Share class B Acc £ 1093.18 1093.18 -0.82 0.00
Artisan Global Opportunities I USD Acc $ 12.33 - -0.04 0.00 Capital Value Fund Cls V £ 130.59 130.59 0.11 0.27
Japan Ser 4 370.30 389.80 2.80 - Amundi Funds (LUX)
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 Artisan Global Value Fund Class I USD Acc $ 15.76 - -0.04 0.00
Man. Ser. 4 1633.10 1719.10 -2.40 - www.amundi-funds.com Artisan US Value Equity Fund Class I USD Acc $ 10.58 - 0.00 0.00
FCA Recognised
Bank of America Cap Mgmt (Ireland) Ltd (IRL)
Money Ser. 4 524.40 552.00 0.00 -
Regulated
Bd. Euro Corporate AE Class - R - EUR € 18.54 - 0.01 0.00
Prop. Ser. 4 1111.20 1169.70 -0.60 - Global Liquidity USD $ 1.00 - 0.00 0.29
Bd. Global AU Class - R - USD $ 25.55 - -0.03 0.00
Custodian Ser 5 472.60 497.50 -0.70 - Ashmore Sicav (LUX)
Brown Advisory Funds plc (IRL)
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 2 rue Albert Borschette L-1246 Luxembourg
International Ser 5 415.50 437.40 0.30 - http://www.brownadvisory.com Tel: 020 3301 8130
FCA Recognised
Eq. Emerging World AU Class - R - USD $ 79.38 - -0.57 0.00 Barclays Investment Funds (CI) Ltd (JER) FCA Recognised
Managed Ser 5 1568.10 1650.60 -2.30 - Ashmore SICAV Emerging Market Debt Fund $ 92.09 - -0.36 8.42
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Brown Advisory US Equity Growth Fund USD B $ 22.84 - 0.10 0.00 Canada Life Investments (UK)
Eq. Greater China AU Class - R - USD $ 549.86 - -1.49 0.00
Money Ser 5 513.40 540.50 0.00 - Ashmore SICAV Emerging Market Frontier Equity Fund $ 141.21 - -0.42 0.97 FCA Recognised 1-6 Lombard Street, EC3V 9JU. Dealing 0345 606 6180
Brown Advisory US Equity Value Fund USD B $ 11.41 - 0.03 0.95
Eq. Latin America AU Class - R - USD $ 317.42 - -3.74 0.00 Bond Funds Authorised Inv Funds
Property Ser 5 1066.90 1123.10 -0.60 - Ashmore SICAV Emerging Market Total Return Fund $ 78.43 - -0.61 6.05
Sterling Bond F £ 0.45 - 0.00 3.30 Brown Advisory US Flexible Equity SRI Fund USD B $ 14.58 - 0.04 0.38 Asia Pacific B Acc 739.98 - -10.74 1.12
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.71 - 0.00 0.00
Pension Funds Ashmore SICAV Global Small Cap Equity Fund $ 122.94 - -0.44 0.00 Brown Advisory American Fund USD B $ 15.37 - 0.05 0.33 Balanced B Acc 145.10 - -0.70 1.47
American 1933.20 2035.00 9.40 -
Ashmore SICAV Local Currency Fund $ 80.86 - -0.19 0.32 Brown Advisory US Smaller Companies Fund USD B $ 17.44 - 0.10 0.00 Corporate Bond B Inc 205.62 - -0.15 4.03
Equity 4774.80 5026.10 -25.10 -
The Antares European Fund Limited EM Mkts Corp.Debt USD F $ 87.22 - -0.49 8.49 Baring Fund Managers Ltd (1200)F (UK)
Brown Advisory US Small Cap Blend Fund USD B $ 12.17 - 0.05 0.00 European B Acc 246.31 - -3.09 1.57
European 1128.10 1187.40 -4.90 - Dealing and Enquiries 020 7214 1004
Other International EM Mkts Loc.Ccy Bd USD F $ 74.19 - -1.19 4.38
Fund Information: www.barings.com Brown Advisory US Flexible Equity Fund USD B $ 10.88 - 0.03 0.00 Global Bond B Inc 91.40 - 0.04 2.96
Fixed Int. 1641.20 1727.50 -3.10 - AEF Ltd Usd $ 673.40 - 3.50 -
Authorised Inv Funds Brown Advisory Global Leaders Fund $ 10.14 - 0.00 -
AEF Ltd Eur € 676.17 - 3.34 0.00 Global Equity B Acc 581.20 - -0.94 1.10
International 916.90 965.20 -0.10 - Multi Asset A Acc ... C 153.30 - -0.70 1.50
Global Equity Income B Inc 117.69 - -0.43 3.91
Japan 389.10 409.50 2.60 - Multi Asset A Inc ... C 146.20 - -0.70 1.27
Global High Yield Bond B Inc 92.23 - -0.01 5.02
Managed 4223.30 4445.60 -8.40 - Charity Fund
Arisaig Partners Enquiries 020 7214 1763 Global Infrastructure B Acc 105.51 - -0.95 0.94
Property 2883.30 3035.00 -1.80 - Other International Funds Targeted Return Fund Acc 143.20 144.00 -1.00 3.14
Global Resource B Acc 69.32 - 1.18 0.89
Security 1476.50 1554.20 0.10 - Arisaig Africa Consumer Fund Limited $ 13.51 - 0.02 0.00
Targeted Return Fund Inc 110.00 110.60 -0.80 3.20
Japan B Acc 50.92 - 0.37 0.93
Selective 1992.70 2097.60 -11.00 - Arisaig Asia Consumer Fund Limited $ 62.77 - 0.42 0.00
Aspect Capital Ltd (UK)
Portfolio III B Acc 107.19 - -0.16 2.32
Formerly Hill Samuel Life Assurance Ltd Arisaig Global Emerging Markets Consumer UCITS € 11.82 - -0.04 0.00 Other International Funds
100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603 Aspect Diversified USD $ 439.48 - 5.55 0.00 CCLA Investment Management Ltd (UK) Portfolio IV B Acc 108.89 - -0.23 2.36
Arisaig Global Emerging Markets Consumer UCITS STG £ 10.88 - -0.05 0.00 Baring International Fd Mgrs (Ireland) (IRL) Senator House 85 Queen Victoria Street London EC4V 4ET
Managed Ser A (Life) 1549.50 1639.70 -8.00 - Aspect Diversified EUR € 264.16 - 3.33 - Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004 Authorised Inv Funds Portfolio V B Acc 107.88 - -0.31 1.56
Arisaig Latin America Consumer Fund $ 20.62 - -0.08 0.00
Managed Ser A (Pensions) 1031.80 1086.10 -6.60 - Aspect Diversified GBP £ 135.11 - 1.71 0.00 FCA Recognised The Public Sector Deposit Fund Portfolio VI B Acc 105.60 - -0.66 1.60
ASEAN Frontiers A GBP Inc £ 103.89 - -1.38 0.59 The Public Sector Deposit Fund-share class 1 F 100.00 - 0.00 0.52
Formerly Target Life Assurance Ltd Aspect Diversified CHF SFr 126.44 - 1.59 0.00 Portfolio VII B Acc 101.41 - -0.89 1.58
100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603 Asia Growth A GBP Inc H £ 43.04 - -0.30 0.00 The Public Sector Deposit Fund-share class 2 F 100.00 - 0.00 0.35
Managed (Life) 1573.60 1656.40 -8.20 - Aspect Diversified Trends USD $ 127.70 - -0.80 0.00 North American B Acc 824.87 - 2.40 0.74
Australia A GBP Inc £ 66.78 - -0.57 1.95 The Public Sector Deposit Fund-share class 3 F 100.00 - 0.00 0.38
Managed Growth (Life) 493.60 519.60 -3.60 - Aspect Diversified Trends EUR € 127.99 - -0.77 0.00 Strategic Return B Acc 96.92 - -0.32 0.00
Baring China Bond Fund $ 9.82 - -0.01 0.00 The Public Sector Deposit Fund-share class 4 F 100.00 - 0.00 0.46
Managed (Pensions) 6191.30 6517.20 -39.70 - Aspect Diversified Trends GBP £ 132.60 - -0.87 0.00 Total Return B Acc 99.08 - -0.30 2.97
Baring Emerging Markets Corporate Debt Fund $ 9.20 - -0.03 0.00 The Public Sector Deposit Fund-share class 5 F 100.00 - 0.00 0.34
Managed Growth (Pensions) 602.20 633.90 -5.40 - UK Equity B Acc 108.14 - -0.70 1.68
Baring European Opportunities Fund Class A EUR Acc € 13.61 - -0.20 0.00
additional fund prices can be found on our website Artemis Fund Managers Ltd (1200)F (UK) UK Equity & Bond Income B Inc 232.32 - -1.82 5.04
Atlantas Sicav (LUX) Baring Global Mining Fund - Class A GBP Inc £ 3.29 - -0.05 0.65
57 St. James's Street, London SW1A 1LD 0800 092 2051 UK Equity Income B Inc 415.32 - -3.97 4.97
Regulated Dynamic Emerging Markets A GBP Acc F £ 8.38 - -0.12 0.00 CCLA Investment Management Ltd (UK)
Authorised Inv Funds
American Dynamic $ 3511.95 - -35.19 0.00 Senator House 85 Queen Victoria Street London EC4V 4ET UK Government Bond B Inc 47.30 - -0.04 1.97
Artemis Capital R ACC 1244.64 1314.98 -9.37 1.24 Eastern Europe A GBP Inc £ 38.68 - -0.87 1.72 Property & Other UK Unit Trusts
American One $ 3246.85 - -12.61 0.00
Artemis European Growth R Acc 237.97 251.11 -2.86 1.19 Emerging Mkt Debt LC A GBP Hedged Inc £ 6.90 - -0.14 6.56 CBF Church of England Funds
Bond Global € 1406.50 - -28.90 0.00 Investment Inc 1343.25 1358.11 -7.03 3.78
Artemis European Opps R Acc 73.56 77.62 -0.68 0.82 Emerging Opportunities A GBP Inc H £ 17.83 - -0.15 0.00
Eurocroissance € 916.19 - -18.94 0.00 Investment Acc 2756.07 2786.55 -14.43 -
Artemis Global Emg Mkts I GBP Acc 76.80 - -1.82 - Glb Emerging Markets A GBP Inc H £ 17.99 - -0.28 0.00
14 | FTfm FINANCIAL TIMES Monday 14 December 2015

FTfm

Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield

The Global Financial Infrastructure Fund £ 99607.39 - -392.61 - Gbl RealEstate Sec. IX $ 12.5888 - -0.0883 0.00 USD Accumulating Class $ 9.22 - -0.03 0.00 Global Dividend - Inc £ 1.38 - -0.01 3.27

The Global Technology Infrastructure Fund £ 99489.30 - -510.70 - Dodge & Cox Worldwide Funds plc-Global Stock Fund Global Focus £ 13.01 - -0.09 0.00
USD Accumulating Share Class $ 15.66 - 0.01 0.00
The London, Key Cities & Counties Social Infrastructure Fund £ 99369.30 - -630.70 - Global High Yield Fund - A Gross Acc £ 11.79 - -0.03 4.86
Consistent Unit Tst Mgt Co Ltd (1200)F (UK) GBP Accumulating Share Class £ 16.99 - 0.04 0.00
Global High Yield Fund - A Gross Inc £ 9.76 - -0.02 5.53
PO BOX 10117, Chelmsford, Essex, CM1 9JB
GBP Distributing Share class £ 12.39 - 0.02 0.83
Dealing & Client Services 0845 0264281 Global High Yield Fund - A Net Acc £ 11.35 - -0.03 4.92
Cavendish Asset Management Limited (1200)F (UK) Authorised Inv Funds EUR Accumulating Share Class € 21.48 - 0.16 0.00
Global High Yield Fund - A Net Inc £ 9.75 - -0.03 5.53
Chelsea House, Westgate, London W5 1DR Consistent UT Inc 51.87 52.48 -0.75 4.72
Dodge & Cox Worldwide Funds plc-International Stock Fund
Candriam Investors Group (LUX) IFA Enquiries 020 8810 8041 Admin/Dealing 0870 870 7502 EFG Hermes Global Property - Acc £ 1.44 - -0.02 1.31
Consistent UT Acc 120.89 122.32 -1.74 4.57 USD Accumulating Share Class $ 13.34 - -0.03 0.00
FCA Recognised Authorised Inv Funds DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE
Global Property W Inc £ 1.17 - -0.02 3.06
Candriam Eqts L Australia Cap A$ 944.18 - -2.80 0.00 Cavendish Opportunities Fund B Class 1040.00 - -5.00 1.66 Practical Investment Inc 198.62 203.92 -2.19 3.98 EUR Accumulating Share Class € 14.35 - 0.07 0.00 Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com
Other International Funds Global Special Sits £ 25.53 - -0.19 0.00
Candriam Eqts L Sust World Cap € 282.11 - 0.13 0.00 Cavendish Opportunities Fund A Class 1035.00 - -4.00 0.82 Practical Investment Acc 969.90 995.79 -10.73 3.87 Dodge & Cox Worldwide Funds plc-U.S. Stock Fund
The EFG-Hermes Egypt Fund $ 29.93 - - 0.00
USD Accumulating Share Class $ 17.95 - 0.07 0.00 Index Emerging Markets P-Acc £ 0.91 - -0.02 2.70
Candriam Bds Euro Cap € 1134.37 - 0.56 0.00 Cavendish Opportunities Fund C Acc 1083.00xd - -5.00 1.48
Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00
GBP Accumulating Share Class £ 18.42 - 0.10 0.00 Index Europe ex UK P-Acc £ 1.00 - -0.01 2.43
Candriam Bds Euro Infl Linked Cap € 142.87 - 0.22 0.00 Cavendish Worldwide Fund B Class 293.00 - -1.30 0.70
Saudi Arabia Equity Fund SR 13.18 - -0.06 0.00
GBP Distributing Share Class £ 11.73 - 0.06 0.57 Index Japan P-Acc £ 1.12 - -0.01 1.53
Candriam Qt-Eqts Europe Cap € 2297.52 - -9.50 0.00 Cavendish Worldwide Fund A Class 292.50 - -1.30 0.00
EUR Accumulating Share Class € 21.28 - 0.23 0.00 Index Pacific ex Japan P-Acc £ 0.98 - -0.01 3.98
Candriam Qt-Eqts USA Cap $ 2330.01 - 4.55 0.00 Cavendish Worldwide Fund C Acc 300.60xd - -1.30 0.62
Index UK A-Acc £ 0.81 - -0.01 2.86
Cavendish AIM Fund B Class 161.80 - 0.50 0.71 Electric & General (1000)F (UK)
Stuart House St.John's Street Peterborough PE1 5DD Index UK P-Acc £ 0.98 - -0.01 3.10
Cavendish AIM Fund A Class 157.60 - 0.50 0.00
Orders & Enquiries: 0845 850 0255
Candriam Investors Group (BE) Index US A-Acc £ 1.63 - -0.01 1.40
FCA Recognised
Cavendish Asia Pacific Fund B Class 149.10 - -2.00 1.74 Coronation Fund Managers Authorised Inv Funds
+44 (0)20 7389 8840 www.coronation.com Authorised Corporate Director - Carvetian Capital Management Index US P-Acc £ 1.26 - -0.01 1.60
Candriam Sust Euro Bonds Cap € 359.77 - 0.33 0.00 Cavendish Asia Pacific Fund A Class 149.20 - -2.00 0.77
Enquiries: +27 (21) 680 2837/2457 coronationfunds@coronation.co.za Electric&General Net Income A 146.00 - 0.60 1.97
Index World A-Acc £ 1.40 - -0.01 1.77
Candriam Sust North America Cap $ 39.16 - 0.03 0.00 Cavendish Asia Pacific Fund C Acc 155.80 - -2.10 1.71 Other International Funds
Global Equity Fund of Funds - Class A $ 14.01 - 0.05 0.00 Index World P-Acc £ 1.14 - -0.01 1.88
Candriam Sust World Cap € 26.16 - 0.01 0.00 Cavendish European Fund B Class 138.00 - -2.20 1.12
Global Emerging Markets - Class A $ 12.08 - -0.16 0.00 Dragon Capital Group Japan £ 2.76 - -0.02 0.00
Cavendish European Fund A Class 137.00 - -2.10 0.30 Ennismore Smaller Cos Plc (IRL)
c/o 1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam
All Africa $ 13.80 - -0.44 0.00 5 Kensington Church St, London W8 4LD 020 7368 4220 Japan Smaller Companies £ 2.03 - -0.01 0.00
Cavendish Japan Fund B Class 159.50 - 0.70 0.73 Fund information, dealing and administration: funds@dragoncapital.com
Candriam Investors Group FCA Recognised
Africa Frontiers $ 15.50 - -1.10 0.00 Other International Funds MoneyBuilder Asset Allocator £ 1.16 - -0.01 0.64
Cavendish Japan Fund A Class 158.70 - 0.70 0.00 Ennismore European Smlr Cos NAV £ 100.37 - -0.12 0.00
Other International Funds Vietnam Enterprise Inv. (VEIL) NAV $ 3.56 - 0.01 0.00 MoneyBuilder Balanced £ 0.49 - -0.01 3.99
Candriam Eqts L Emerging Mkts Cap € 623.55 - -4.06 0.00 Cavendish North American Fund B Class 192.00 - 0.50 0.51 Ennismore European Smlr Cos NAV € 139.15 - 0.04 0.00
Vietnam Growth Fund (VGF) NAV $ 23.09 - 0.08 0.00 Money Builder Dividend £ 2.52 - -0.02 4.34
Candriam Eqts L Euro 50 Cap € 538.16 - -1.22 0.00 Cavendish North American Fund A Class 186.60 - 0.40 0.00
Vietnam Property Fund (VPF) NAV $ 0.81 - 0.00 0.00 MoneyBuilder Growth £ 0.73 - -0.01 2.40
Candriam Eqts L Europe Cap € 959.16 - -2.91 0.00 Cavendish Technology Fund B Class 291.70 - -0.80 0.02
Candriam Eqts L Japan Cap ¥ 21425.00 - 135.00 0.00 Cavendish Technology Fund A Class 277.10 - -0.80 0.00
Ennismore European Smlr Cos Hedge Fd MoneyBuilder Growth ISA £ 0.74 - 0.00 2.56
Other International Funds
MoneyBuilder Income £ 0.35 - 0.00 3.21
Candriam Bonds Credit Opportunities € 189.86 - -0.03 0.00 Cavendish UK Balanced Income Fund B Class 133.50 - -1.10 4.90 DSM Capital Partners Funds (LUX) NAV € 485.30 - 14.53 0.00
www.dsmsicav.com MoneyBuilder Income -Gross £ 0.35 - 0.00 3.21
Candriam Bds Euro Conv. Classic Cap € 3401.51 - -1.14 0.00 Cavendish UK Balanced Income A Class 126.90 - -1.10 5.16
Asset Management
Crèdit Andorrà Asset Management (LUX) Regulated Multi Asset Adventurous A-Acc £ 1.29 - -0.01 0.44
Candriam Bds Euro Corp ExFin Cap € 161.99

Candriam Bds Euro Gov.Cl.Cap € 2274.90

-

-
0.16 0.00

2.06 0.00
Cavendish UK Select Fund B Class

Cavendish UK Select Fund A Class

140.60

140.50
-

-
-1.40 2.28

-1.40 1.38
www.creditandorra.com
FCA Recognised
Global Growth I2 Acc

Global Growth I1 Eur

Asset Management
€ 137.33

€ 102.70
-

-
0.65 0.00

0.48 -
Equinox Fund Mgmt (Guernsey) Limited (GSY) Asset Management
Multi Asset Alloc Adventurous A-Acc £ 3.61 - -0.05 3.07
Regulated
Crediinvest SICAV Money Market Eur I € 11.20 - 0.00 0.00 Multi Asset Alloc Strategic A-Acc £ 1.15 - -0.01 0.35
Candriam Bds Euro High Yield Cap € 999.96 - -1.26 0.00 Equinox Russian Opportunities Fund Limited $ 118.76 - -1.14 0.00
Crediinvest SICAV Money Market Usd A $ 10.02 - 0.00 0.00 Multi Asset Alloc Def - Gross A £ 1.11 - 0.00 0.34
Candriam Bds Euro High Yield R Cap € 111.09 - -0.14 0.00

Candriam Bds Euro Long Term Cap € 7920.96 - 14.30 0.00

Cedar Rock Capital Limited (IRL) Crediinvest SICAV Fixed Income Eur € 10.63 - 0.01 0.00 Eclectica Asset Management (UK) Multi Asset Alloc Def - Net A £ 1.11 - 0.00 0.36
Regulated 40 Dukes Place, London EC3A 7NH
Candriam Bds Euro Sh.Term Cap € 2077.02 - -0.07 0.00 Cedar Rock Capital Fd Plc $ 368.06 - 9.24 0.00
Crediinvest SICAV Fixed Income Usd $ 10.41 - 0.00 0.00 Euronova Asset Management UK LLP (CYM) Multi Asset Alloc Growth A £ 1.17 - -0.01 0.03
Order Desk and Enquiries: 0345 608 0941
Regulated
Crediinvest SICAV Spanish Value € 245.44 - -0.12 0.00 Authorised Corporate Director - Capita Financial Managers Multi Asset Defensive £ 1.21 - -0.01 0.28
Candriam Bds International Cap € 983.98 - -0.40 0.00 Cedar Rock Capital Fd Plc £ 383.87 - 13.04 0.00 Smaller Cos Cls One Shares (Est) € 36.08 - -0.02 0.00
Crediinvest SICAV International Value € 212.95 - -0.91 0.00 Authorised Inv Funds Multi Asset Defensive - Gross £ 1.22 - 0.00 0.27
Candriam Bds USD Cap $ 927.26 - -0.27 0.00 Cedar Rock Capital Fd Plc € 362.78 - 14.70 0.00 CF Eclectica Agriculture A EUR Acc € 1.41 - -0.01 0.00 Smaller Cos Cls Two Shares (Est) € 25.15 - -0.02 0.00
Crediinvest SICAV Big Cap Value € 15.61 - -0.04 0.00 Multi Asset Growth £ 1.33 - -0.01 0.26
Candriam Total Return Bond Cap € 131.31 - -0.34 0.00 CF Eclectica Agriculture A GBP Acc 101.82 - -0.71 0.00 Smaller Cos Cls Three Shares (Est) € 12.67 - -0.01 0.00
Crediinvest SICAV US American Value $ 18.02 - 0.06 0.00 MultiManager Balanced £ 1.09 - 0.00 0.56
CF Eclectica Agriculture A USD Acc $ 1.54 - -0.01 0.00 Smaller Cos Cls Four Shares (Est) € 16.28 - -0.01 0.00
Charles Schwab Worldwide Funds Plc (IRL) Crediinvest SICAV Sustainability € 15.40 - -0.09 0.00 Multi Asset Open Growth A-Acc £ 0.45 - -0.01 0.54
Regulated CF Eclectica Agriculture C EUR Acc € 1.46 - -0.01 0.33
Multi Asset Open Strategic A-Acc £ 1.21 - 0.00 1.02
Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 CF Eclectica Agriculture C GBP Acc 105.70 - -0.73 0.39
Multi Asset Open Strategic A-Inc £ 0.29 - 0.00 2.52
Daiwa SB Investments (UK) Ltd (LUX) CF Eclectica Agriculture C USD Acc $ 1.59 - -0.01 0.41
Multi Asset Strategic £ 1.51 - 0.00 0.31
5 King William Street, London EC4N 7DA
Chartered Asset Management Pte Ltd www.daiwasbi.co.uk 0207 597 7000 Open World A-Acc £ 1.18 - -0.01 -0.62
Other International Funds Regulated
Multi Asset Income A Gross Acc £ 1.55 - -0.01 3.45
Capita Asset Services (UK) CAM-GTF Limited $ 281155.32 281155.32 1747.59 0.00 DSBI Japan Equity Fundamental Active I JPY ¥ 12468.37 12468.37 80.31 0.00
40 Dukes Place, London EC3A 7NH Multi Asset Income A Gross Inc £ 1.08 - 0.00 4.90
Order Desk and Enquiries: 0345 922 0044 CAM GTi Limited $ 649.70 - 30.41 0.00 DSBI Japan Equity Fundamental Active I GBP £ 123.84 123.84 0.82 0.00 Eurobank Fund Management Company (Luxembourg) S.A.
Regulated Multi Asset Income A Net Acc £ 1.47 - 0.00 3.46
Authorised Inv Funds Raffles-Asia Investment Company $ 1.55 1.55 -0.11 5.55 DSBI Japan Equity Fundamental Active A EUR € 118.87 124.81 0.77 0.00
(LF) Absolute Return € 1.32 - 0.00 0.00
CF Heartwood Cautious B Acc 126.26 - -0.31 0.16 Multi Asset Income A Net Inc £ 1.08 - 0.00 4.89
(LF) Eq Emerging Europe € 0.69 - 0.00 0.00
CF Heartwood Cautious Income B Inc 108.61 - -0.34 2.44 South East Asia £ 7.68 - -0.08 0.12
EdenTree Investment Management Ltd (UK)
(LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00
CF Heartwood Growth B Acc 140.55 - -0.65 0.68 DAVIS Funds SICAV (LUX) PO Box 3733, Swindon, SN4 4BG, 0800 358 3010 Special Situations £ 30.13 - -0.28 0.78
Regulated Authorised Inv Funds (LF) Eq Mena Fund € 12.54 - -0.04 0.00
CF Heartwood Balanced Income B Inc 109.53 - -0.58 2.98 Sterling Core Plus Red Dur £ 10.09 - -0.01 -
Davis Value A $ 40.33 - 0.03 0.00 Amity UK Cls A Inc 209.10 - -1.60 1.46 (LF) Greek Government Bond € 17.78 - -0.18 -
CF Heartwood Balanced B Acc 122.70 - -0.37 0.31 Strategic Bond £ 0.31 - 0.00 2.83
Davis Global A $ 28.54 - -0.16 0.00 Amity UK Cls B Inc 209.60 - -1.50 2.25 (LF) Greek Corporate Bond € 12.03 - -0.03 -
CF Heartwood Defensive Multi Asset Fund B Accumulation 108.58 - -0.17 0.00 Strategic Bond Gross £ 0.31 - 0.00 2.83
Higher Income Cls A Inc 120.00 - -0.60 4.98 (LF) FOF Dynamic Fixed Inc € 11.71 - 0.00 0.00
CF Richmond Core 172.72 - 0.76 0.00 Target 2015 £ 0.50 - 0.00 0.39
Cheyne Capital Management (UK) LLP (IRL) Higher Income Cls B Inc 123.60 - -0.70 4.90 (LF) FOF Real Estate € 16.40 - -0.09 0.00
CF Seneca Diversified Growth A ACC 214.56 - -1.21 1.45 Regulated Target 2020 £ 0.56 - 0.00 0.52
Cheyne Convertibles Absolute Return Fund € 1353.26 - 0.79 0.00 UK Equity Growth Cls A Inc 237.30 - -1.30 0.59
CF Seneca Diversified Growth B ACC 126.98 - -0.71 2.43 Target 2025 £ 1.29 - -0.01 0.32
Cheyne Global Credit Fund € 118.05 - 0.01 0.00 UK Equity Growth Cls B Inc 243.20 - -1.40 1.20
CF Seneca Diversified Growth N ACC 125.71 - -0.71 2.10 Target 2030 £ 1.39 - -0.01 0.40
Cheyne European Mid Cap Fund € 1147.19 - -3.42 0.00 Amity Balanced For Charities A Inc 105.50 - -0.50 6.09
CF Seneca Diversified Income A INC 86.78 - -0.31 5.62 UK Select £ 2.39 - -0.03 0.86
Amity European Fund Cls A Inc 194.00 - -2.00 1.23
CF Seneca Diversified Income B INC 102.97 - -0.38 5.65 UK Growth £ 3.52 - -0.03 0.00
Deutsche Asset Management UK Ltd. (LUX) Amity European Fund Cls B Inc 196.70 - -2.00 2.09
CF Seneca Diversified Income N INC 101.97 - -0.37 5.65 Tel: + 44 207 545 9070 www.dws.co.uk UK Smaller Companies £ 2.13 - -0.01 0.18
Cheyne Capital Management (UK) LLP Amity Global Equity Inc for Charities A Inc 99.26 - -0.55 3.99
FCA Recognised
Investment Adviser - DSM Capital Partners Other International Funds WealthBuilder A Acc £ 1.00 - -0.01 0.48
Deutsche Invest I Africa GBP RD1 Inc £ 112.38 112.38 -4.73 1.12 Amity International Cls A Inc 196.70 - -1.10 1.38
The Westchester $ 27.83 - 0.14 0.00 Cheyne European Event Driven Fund € 137.91 - 0.00 0.00 FIL Investment Services (UK) Limited (1200)F (UK)
Fidelity PathFinder
Deutsche Invest I Chinese Eq.GBP RD Inc £ 102.97 102.97 -1.20 0.76 Amity International Cls B Inc 198.90 - -1.20 2.25 130, Tonbridge Rd, Tonbridge TN11 9DZ
The Westchester Class 1 GBP Acc £ 19.90 - 0.12 0.00 Cheyne Real Estate Credit Holdings Fund £ 160.92 - 7.23 0.00 Fidelity PathFinder Foundation 1 Gross Acc (clean) £ 1.09 - 0.00 -
Callfree: Private Clients 0800 414161
Deutsche Invest I Conv.GBP RDH Inc £ 168.15 168.15 -0.70 0.62 Amity Sterling Bond Fund A Inc 105.40 - -0.10 5.17
The Westchester Class 2 GBP Acc £ 19.95 - 0.13 0.00 Cheyne Real Estate Credit Holdings Fund III £ 111.98 - 0.56 0.00 Broker Dealings: 0800 414 181 Fidelity PathFinder Foundation 1 Acc (clean) £ 1.09 - 0.00 -
Deutsche Invest I Global Agrib.GBP LD DS Inc £ 87.54 92.15 -0.47 0.30 Amity Sterling Bond Fund B Inc 114.00 - 0.00 5.16 Authorised Inv Funds
Investment Adviser - Morant Wright Management Limited Cheyne Real Estate Debt Fund Class A1 £ 131.65 - 0.83 0.00 Fidelity PathFinder Foundation 2 Acc (clean) £ 1.07 - -0.01 -
Unit Trust
CF Morant Wright Japan A 276.75 - 2.04 0.00 Deutsche Invest I Top Asia GBP RD Inc £ 150.73 150.73 -1.01 1.15
Cheyne Total Return Credit Fund - December 2017 Class $ 182.18 - 10.16 0.00 Cash Accum Units 186.41 186.41 0.00 0.00 Fidelity PathFinder Foundation 3 Acc (clean) £ 1.05 - -0.01 -
CF Morant Wright Japan A Inc 272.66 - 2.01 0.00
Cheyne Total Return Credit Fund 2020 $ 103.39 - 0.01 - Cash Fund £ 1.00 1.00 0.00 0.15 Fidelity PathFinder Foundation 4 Acc (clean) £ 1.06 - -0.01 -
CF Morant Wright Japan B 294.50 - 2.18 0.51 Edinburgh Partners Limited (IRL)
27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143 Gross Accum Cash £ 1.28 1.28 0.00 0.00 Fidelity PathFinder Foundation 5 Acc (clean) £ 1.16 - 0.00 -
Discretionary Unit Fund Mngrs (1000)F (UK)
CF Morant Wright Japan B Inc 277.71 - 2.05 0.53 Dealing - Fax only - +353 1 434 5230
1 Poultry, London EC2R 8JR 020 7 415 4130 MoneyBuilder Cash ISA £ 1.00 1.00 0.00 0.14 Fidelity PathFinder Focussed 1 Gross Acc (clean) £ 1.10 - 0.00 -
CF Morant Wright Nippon Yield ACC A 282.49 - 1.59 2.07 Clareville Capital Partners LLP Authorised Inv Funds FCA Recognised
Edinburgh Partners Opportunities Fund PLC MoneyBuilder Global £ 2.57 2.57 -0.01 0.20 Fidelity PathFinder Focussed 1 Acc (clean) £ 1.10 - 0.00 -
Other International Funds Disc Inc 1587.55 1699.73 -1.43 0.00
CF Morant Wright Nippon Yield ACC B 292.97 - 1.65 2.06 European Opportunities I EUR € 2.48 - 0.01 2.20
Pegasus Fund Ltd A-1 GBP £ 55.32 - -1.68 0.00 OEIC Funds Fidelity PathFinder Focused 2 Acc (Clean) £ 1.10 - -0.01 -
Do Accum 5982.03 6404.75 -5.41 0.00
CF Morant Wright Nippon Yield Fund A Inc 245.56 - 1.38 2.11 European Opportunities I GBP £ 1.78 - 0.00 2.47 American £ 26.76 - -0.10 0.00
Pegasus Fund Ltd A-2 GBP £ 140.29 - -4.26 0.00 Fidelity PathFinder Focussed 3 Acc (clean) £ 1.09 - -0.01 -
CF Morant Wright Nippon Yield Fund B Inc 254.76 - 1.44 2.10 European Opportunities I USD $ 2.72 - -0.01 2.05 American Special Sits £ 11.44 - -0.07 0.00
Pegasus Fund Ltd A-1 EUR € 23.64 - -0.71 0.00 Fidelity PathFinder Focussed 4 Acc (clean) £ 1.10 - -0.01 -
Pegasus Fund Ltd A-1 USD $ 25.31 - -0.78 0.00 European Opportunities A EUR € 2.42 - 0.00 1.53 Asia Pacific Ops W-Acc £ 1.03 - -0.01 0.42
Fidelity PathFinder Focussed 5 Acc (clean) £ 1.14 - 0.00 -
Pegasus Fund Ltd A-2 USD $ 137.66 - -4.20 0.00 Global Opportunities I USD $ 1.60 - -0.01 2.09 Fidelity Asian Dividend Fund A-Accumulation £ 1.04 - -0.02 1.43
Fidelity PathFinder Freedom 1 Gross Acc (clean) £ 1.06 - -0.01 -
Pegasus Fund Ltd B-1 GBP £ 192.46 - -0.16 0.00 Global Opportunities I GBP £ 1.06 - 0.00 1.94 Fidelity Asian Dividend Fund A-Income £ 0.98 - -0.01 3.52
Fidelity PathFinder Freedom 2 Acc (clean) £ 1.05 - -0.01 -
Pegasus Fund Ltd B-2 GBP £ 147.55 - -0.13 0.00 Global Opportunities I EUR € 1.52 - -0.01 1.98 China Consumer £ 1.42 - -0.03 0.08
Fidelity PathFinder Freedom 1 Acc (clean) £ 1.06 - 0.00 -
Pegasus Fund Ltd B-1 EUR € 161.47 - -0.14 0.00 Global Opportunities A GBP £ 0.99 - 0.00 1.47 Emerging Asia £ 1.12 - -0.01 0.14
Fidelity PathFinder Freedom 3 Acc (clean) £ 1.04 - 0.00 -
Dodge & Cox Worldwide Funds (IRL)
Pegasus Fund Ltd B-1 USD $ 172.66 - -0.16 0.00 6 Duke Street,St.James,London SW1Y 6BN Pan European Opportunities I EUR € 1.49 - -0.01 - Emerg Eur, Mid East & Africa H £ 1.17 - -0.08 0.97
Fidelity PathFinder Freedom 4 Acc (clean) £ 1.02 - -0.01 -
Castle Fund Administrators Limited (GIB) www.dodgeandcox.worldwide.com 020 3713 7664 Enhanced Income - Acc £ 1.86 - -0.01 6.45
Fidelity PathFinder Freedom 5 Acc (clean) £ 1.10 - -0.01 -
932 Europort, Gibraltar GX11 1AA FCA Recognised
Tel: +350 200 40466 Enhanced Income - Inc £ 1.18 - -0.01 7.18
Dodge & Cox Worldwide Funds plc - Global Bond Fund Fidelity PathFinder Income 1 Income (clean) £ 1.01 - 0.00 3.98
www.castlefundadministrators.com Cohen & Steers SICAV (LUX) EUR Accumulating Class € 11.68 - 0.04 0.00 European - Inc £ 1.38 - -0.02 0.77
Fidelity PathFinder Income 1 Gross Income (clean) £ 1.01 - 0.00 4.96
Other International Funds Regulated
EUR Accumulating Class (H) € 9.15 - -0.03 0.00 European £ 15.76 - -0.14 1.16
Inspirato Fund No. 2 PCC Limited European Real Estate Securities € 23.6163 - -0.1228 1.54 Fidelity PathFinder Income 2 Income (clean) £ 1.02 - 0.00 3.57
Inspirato Fund No. 2 PCC Limited - Cell A £ 40475.64 - -25.08 0.00 EUR Distributing Class € 11.20 - 0.04 3.09 European Opportunities £ 3.74 - -0.03 0.24
Europ.RealEstate Sec. IX € 31.6164 - -0.1645 0.00 Fidelity PathFinder Income 2 gross £ 1.02 - -0.01 4.47
Inspirato Fund No. 2 PCC Limited - Cell B £ 100228.10 - -256.25 0.00 EUR Distributing Class (H) € 8.77 - -0.03 3.37 Extra Income £ 0.26 - 0.00 3.29
Gbl Listed Infrastructure I $ 9.7079 - -0.0559 - Fidelity PathFinder Income 2 Gross Income (clean) £ 1.02 - 0.00 4.44
Inspirato Fund No. 2 PCC Limited - Cell C $ 102580.23 - 16.17 0.00 GBP Distributing Class £ 9.84 - -0.02 3.26 Extra Income - Gross £ 0.26 - 0.00 3.29
Gbl Listed Infrastructure IX $ 9.7079 - -0.0559 -
Inspirato Fund No. 2 PCC Limited - Cell D £ 107321.36 - 111.33 0.00 GBP Distributing Class (H) £ 8.85 - -0.03 3.34 Global Dividend - Acc £ 1.56 - -0.02 3.08
Gbl RealEstate Sec. I $ 10.6444 - -0.0746 1.42
FINANCIAL TIMES Monday 14 December 2015 FTfm | 15

FTfm

Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield

Fidelity PathFinder Income 3 Income (clean) £ 1.02 - -0.01 4.08 Emerging Markets Bond A Accumulation £ 1.18 - 0.00 4.85 GAM Star US All Cap Eqty USD Acc F $ 13.43 - 0.05 0.00 HL Multi-Manager Strategic Bond Trust M Acc 167.12 172.28 -0.22 0.89 Hermes UK Small & Mid Cap Fund Class R Acc € 5.02 5.02 -0.03 0.00 Global Opportunities Acc F 91.48 - -0.73 0.47

Institutional OEIC Funds Emerging Markets Bond A Income £ 1.02 - -0.01 4.99 GAM Star Worldwide Eqty USD Acc F $ 3062.68 - -10.61 0.00 HL Multi-Manager Strategic Bond Trust A Inc 138.87 143.16 -0.19 1.82 Hermes US All Cap Equity Class F Stg £ Acc £ 0.99 0.99 0.00 - Global Smaller Cos Acc F 1643.88 - -7.22 0.20
America £ 3.92 - -0.03 0.52
Global Agribusiness Fund A Accumulation 116.94 - -0.77 0.00 HL Multi-Manager Strategic Bond Trust M Inc 138.86 143.14 -0.19 0.91 Hermes US All Cap Equity Class R € Acc € 1.97 1.97 0.01 - Global Smaller Cos Inc F 1569.71 - -6.89 0.20
Emerging Markets £ 2.97 - -0.07 0.81
Global Emerging Mkts A Shares 531.90 - -9.53 0.70 HL Multi Manager Emerging Markets A Acc 84.09 86.67 -0.24 0.33 Hermes US SMID Equity Fund Class F Acc £ 1.60 1.60 0.00 0.00 Global Targeted Rets Acc 56.23 - -0.01 0.29
Europe £ 3.98 - -0.04 1.55 GYS Investment Management Ltd (GSY)
Global Emerging Mkts Leaders A Shares 384.54 - -6.90 0.75 HL Multi-Manager European A Acc 101.57 104.69 -1.10 0.74 Hermes US SMID Equity Fund Class R Acc € 3.45 3.45 0.00 0.00 High Income Acc F 805.99 - -6.84 3.28
Regulated
Fidelity Pre-Retirement Bond Fund £ 118.20 - -0.10 3.01
Global Emerging Mkts Sustainability A Acc 208.55 - -3.95 0.98 Taurus Emerging Fund Ltd $ 178.98 182.64 4.40 0.00 HL Multi-Manager UK Growth A Acc 102.85 106.03 -0.70 1.24 High Income Inc F 444.61 - -3.77 3.36
Global Focus £ 2.77 - -0.02 1.61
Global Listed Infrastructure Acc 166.26 - -1.44 3.09 High Yield Fund Acc 105.56 - 0.70 5.22
Index Linked Bond £ 2.60 - -0.02 0.72 Hermes Property Unit Trust (UK)
Global Listed Infrastructure Inc 129.31 - -1.12 3.15 High Yield Fund Acc (Gross) 123.27 - 0.82 5.19
Property & Other UK Unit Trusts
Index Linked Bond Gross £ 3.15 - -0.02 0.71 Generali International Limited Haussmann
Global Opportunities A Shares 294.22 - -1.77 0.18 Property £ 5.78 6.15 0.03 4.14 High Yield Fund Inc 41.76 - 0.27 5.36
PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108 Other International Funds
Index-Linked Bond Fund Gross Inc £ 12.28 - -0.10 0.72
Global Property Securities A Accumulation 163.68 - -1.43 2.21 International Insurances Haussmann Cls A $ 2707.71 - 23.04 0.00 High Yield Fund Inc (Gross) 41.83 - 0.28 5.36
Japan £ 2.03 - -0.02 0.78 Global Multi-Strategy Managed $ 4.74 5.10 -0.08 0.00
Global Property Securities A Income 127.42 - -1.11 2.24 Haussmann Cls C € 2370.05 - 20.06 0.00 Hong Kong & China Acc F 456.47 - -6.43 0.74
Long Bond £ 0.50 - -0.01 2.85 UK Multi-Strategy Managed £ 4.81 5.18 -0.11 0.00 Hermes UK Residential Real Estate (UK)
Global Resources A Shares 157.05 - -0.94 1.35 Haussmann Cls D SFr 1254.52 - 10.27 0.00 Income & Growth Acc F 927.85 - -9.15 4.05
Property & Other UK Unit Trusts
Long Bond Gross £ 0.83 - 0.00 2.79 EU Multi-Strategy Managed € 3.03 3.27 -0.07 0.00
Greater China Growth A Shares 501.49 - -4.11 1.04 VISTA UK Residential Real Estate £ 1.02 1.06 0.03 - Income & Growth Inc F 402.54 - -3.98 4.17
Long Bond Fund Gross Inc £ 11.28 - -0.02 2.84 Global Bond USD $ 3.46 3.73 0.01 0.00
Indian Subcontinent A Acc 322.15 - -1.22 0.00 Income Acc F 3097.29 - -39.58 3.13
Pacific (Ex Japan) £ 3.32 - -0.05 1.94 Heartwood Wealth Management Limited (IRL)
Worldwide Equity Fund A Accumulation £ 1.25 - -0.01 0.00 Income Inc F 1722.54 - -22.01 3.20
Regulated
Pan European £ 2.57 - -0.02 2.04 Impax Asset Management (IRL)
Worldwide Equity Fund A Income £ 1.27 - -0.01 0.00 Heartwood Caut Multi Asset B Acc 137.96 - -0.27 0.00 Japan Acc F 309.51 - 0.46 0.31
Genesis Asset Managers LLP Norfolk House, 31 St James's Square, London, SW1Y 4JR
Reduced Duration UK Corporate Bond £ 10.48 - -0.01 3.54
Other International Funds FCA Recognised Japanese Smlr Cos Acc F 65.76 - 0.64 0.00
Reduced Duration UK Corporate Bond Gross £ 10.67 - -0.01 3.54 Emerging Mkts NAV £ 4.96 - -0.03 0.00 Env Mkts (Ire) Stl A £ 2.19 - 0.00 0.00
Latin America Acc F 97.55 - -2.26 1.14
Reduced Duration UK Corporate Bond Inc £ 9.85 - -0.01 3.54 Foord Asset Management Henderson Global Investors (UK) Env Mkts (Ire) Euro A € 2.08 - 0.00 0.00
Latin America Inc F 81.20 - -1.88 1.16
Other International Funds PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832
Reduced Duration UK Corp Bond Gross Inc £ 9.86 - -0.02 3.54 Env Mkts (Ire) USD A $ 1.73 - -0.01 0.00
Foord International Trust $ 34.63 - -0.04 0.00 www.henderson.com Managed Growth Acc F 156.55 - -1.04 0.71
Guardian (UK)
Select Emerging Markets Equities £ 1.09 - -0.03 1.64 Authorised Inv Funds
Ballam Road, Lytham St Annes, Lancashire, FY8 4JZ 01253 733 151 Managed Growth Inc F 130.32 - -0.88 0.71
Asia Pacific Capital Growth A Acc 680.60 - -4.60 0.17
Select European Eqts £ 1.73 - 0.01 1.88 Insurances
Managed Income Acc F 156.30 - -0.85 2.97
Guardian Assurance Asian Dividend Income Inc 80.41 84.86 -0.42 7.23 INDIA VALUE INVESTMENTS LIMITED (INVIL)
Select Global Equities £ 2.95 - -0.02 1.10 Foord Asset Mgmt (Singapore) Pte. Ltd (SGP)
Equity S-GH Class B £ 11.62 - -0.15 - www.invil.mu Managed Income Inc F 95.24 - -0.53 3.02
Regulated Cautious Managed A Acc 232.60 - -1.70 3.28
South East Asia £ 3.39 - -0.04 2.05 Other International Funds
Foord Global Equity Fund Class B $ 12.46 - -0.05 0.00 Managed Fund Bond £ 23.07 24.03 -0.13 - Money Acc F 90.19 - 0.00 0.21
Cautious Managed A Inc 143.80 - -1.10 3.34 NAV £ 7.62 - -0.09 0.00
Sterling Core Plus Bond Gr Accum £ 2.07 - -0.01 3.39
Choices Wth-Pfts Lg-tm 320.90 337.80 0.00 - Money Acc (Gross) F 95.32 - 0.00 0.21
China Opportunities A Acc 823.90 - -7.80 0.40
Sterling Core Plus Bond Inc £ 1.35 - 0.00 3.50
Choices Wth-Pfts St-tm 271.80 286.10 0.10 - Monthly Income Plus Acc F 293.30 - -0.50 4.84
Emerging Markets Opportunities A Acc 133.40 - -2.40 0.80
UK £ 3.50 - -0.04 2.22 Franklin Templeton International Services Sarl (IRL)
JPMorgan House - International Financial Services Centre,Dublin 1, Ireland
Choices Managed 606.52 638.44 -4.39 - Intrinsic Value Investors (IVI) LLP (IRL) Monthly Income Plus Acc (Gross) F 345.15 - -0.57 4.82
European Growth A Acc 166.00 - -2.10 0.54
UK Aggreg Bond Gr Accum £ 1.82 - 0.00 4.57 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
Other International Funds Choices Equity 664.27 699.23 -3.83 - Monthly Income Plus Inc F 107.72 - -0.18 4.95
European Selected Opportunities A Acc 1239.00 - -14.00 0.67 FCA Recognised
UK Aggregate Bond Inc £ 1.22 - 0.00 3.14 Franklin Emerging Market Debt Opportunities Fund Plc
Freedom With Pfts Long-Tm 220.10 231.70 0.00 - IVI European Fund EUR € 17.77 - -0.09 0.00 Monthly Income Plus Inc (Gross) F 107.87 - -0.17 4.94
Franklin Emg Mkts Debt Opp CHFSFr 17.44 - 0.51 8.01 European Special Situations A Acc 94.66 - -0.29 1.05
UK Corporate Bond £ 1.22 - -0.01 3.93
Freedom With Pfts Short-Tm 197.80 208.20 0.00 - IVI European Fund GBP £ 17.41 - -0.08 1.02 Pacific Acc F 952.35 - -3.51 0.38
Franklin Emg Mkts Debt Opp EUR € 12.27 - 0.36 7.13 Fixed Interest Monthly Income A Inc 21.73 22.80 -0.03 5.85
UK Corporate Bond - Gross £ 2.26 - -0.01 3.80
Freedom Managed 354.34 372.99 -2.04 - Pacific Inc F 871.50 - -3.21 0.38
Franklin Emg Mkts Debt Opp GBP £ 10.18 - 0.25 6.96 Global Care Growth A Inc 196.70 - -0.50 0.00
UK Gilt Bond £ 1.29 - 0.00 1.94
Freedom Equity 391.93 412.56 -1.83 - Tactical Bond Acc F 68.59 - 0.01 0.81
Franklin Emg Mkts Debt Opp SGD S$ 22.43 - 0.51 6.17 Global Equity Income A Inc 47.91 - -0.21 3.78
UK Gilt Gross £ 2.04 - -0.01 1.91
Corp Pens Mananged 214.12 214.12 -1.55 - Tactical Bond Inc F 59.47 - 0.01 0.82
Franklin Emg Mkts Debt Opp USD $ 17.18 - 0.35 6.99 Global Growth Fund 2028.80 2120.52 -8.84 0.00
UK Long Corp Bond £ 1.37 - -0.01 4.32
Corp Pens Equity 216.88 216.88 -1.25 - Tactical Bond Acc (Gross) F 71.17 - 0.02 0.81
Global Technology A Acc 974.30 - 1.00 0.00
UK Long Corp Bond - Gross £ 2.49 - 0.00 4.16
Corp Pens Fixed Interest 299.37 299.37 -0.11 - Tactical Bond Inc (Gross) F 59.52 - 0.01 0.82
Multi-Manager Absolute Return A Acc 133.20 - -0.20 0.39
UK Long Corporate Bond Fund - Gross Income £ 11.05 - -0.02 4.30
Frontier Capital (Bermuda) Limited Corp Pens Index Linked 334.16 334.16 -2.94 - UK Focus Acc F 190.45 - -3.13 1.83
Multi-Manager Active A Acc 169.80 - -1.10 0.00
Retail Share Classes Other International
Corp Pens Deposit 191.01 191.01 0.00 - Invesco Fund Managers Ltd (UK) UK Focus Inc F 158.60 - -2.61 1.86
Emerging Markets - retail £ 1.18 - -0.03 0.07 Commercial Property-GBP Class £ 71.42 - -0.53 - Multi-Manager Distribution A Inc 125.20 - -0.60 3.33
Perptual Park, Henley-On-Thames, Oxon, RG9 1HH
Corp Pens Protector 363.33 363.33 -0.57 - UK Growth Acc F 520.07 - -7.89 1.87
{*}CAR - Net income reinvested Global Real Estate-GBP C Class £ 45.26 - -0.50 - Multi-Manager Diversified A Acc 77.17 - -0.29 2.86 Dealing: 0800 085 8571
Corp Pens UK Index Tracker £ 1.87 1.87 -0.02 - Investor Services: 0800 085 8677 UK Growth Inc F 329.95 - -5.01 1.90
Multi-Manager Global Select Acc 173.90 - -1.20 0.00
www.invescoperpetual.co.uk
Guardian Linked Life Assurance Ltd UK Smaller Cos Equity Acc F 880.19 - -2.66 0.77
Multi-Manager Income & Growth A Acc 150.20 - -0.90 2.21 Authorised Inv Funds
FIL Fund Management (LUX) Managed Acc £ 17.66 18.59 -0.12 -
UK Smaller Cos Equity Inc F 674.04 - -2.03 0.78
INVESCO PERPETUAL Funds
2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg Multi-Manager Income & Growth A Inc 138.00 - -0.70 2.24
Equity Acc £ 31.75 33.42 -0.16 - Asian Acc F 416.35 - -2.83 0.92
Phone: 800 22 089, 800 22 088 UK Strategic Income Acc F 181.27 - -1.67 3.50
Multi-Manager Managed A Acc 221.90 - -1.20 0.42
Regulated Fixed Interest Acc £ 17.14 18.04 0.00 - Asian Inc F 371.92 - -2.52 0.93 UK Strategic Income Inc F 133.55 - -1.23 3.59
China Consumer A-GBP £ 14.33 - -0.07 0.00 Multi-Manager Managed A Inc 217.90 - -1.20 0.41
International Acc £ 13.05 13.73 -0.14 - Asian Equity Income Acc F 53.48 - -0.73 4.69 US Equity Acc F 534.84 - 3.75 0.00
China Focus A-GBP £ 4.16 - -0.03 0.71 Sterling Bond Acc 196.42 205.24 -1.37 2.85
International S-NA Acc £ 6.70 7.06 -0.08 - Asian Equity Income Inc F 44.46 - -0.61 4.82 Invesco Perpetual Funds (No Trail)
Global Financial Services A-GBP £ 0.44 - 0.00 0.11 Fundsmith LLP (1200)F (UK) Sterling Bond Inc 60.89 63.62 -0.43 2.89
International S-PA Acc £ 4.05 4.26 -0.04 - Balanced Risk 6 Acc 51.10 - -0.16 0.00 Asian (No Trail) Acc F 174.55 - -1.18 1.47
PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815
Global Health Care A-GBP £ 0.55 - 0.00 0.00 Strategic Bond A Inc 125.60 - -0.20 5.22
www.fundsmith.co.uk, enquiries@fundsmith.co.uk International S-EU Acc £ 3.26 3.44 -0.04 - Balanced Risk 8 Acc 52.11 - -0.21 0.00 Asian (No Trail) Inc F 157.01 - -1.07 1.49
Global Industrials A-GBP £ 0.63 - 0.00 0.00 Authorised Inv Funds UK & Irish Smaller Companies A Acc 534.30 - 0.20 0.00
Managed S-PR Acc £ 6.71 7.06 -0.04 - Balanced Risk 10 Acc 53.05 - -0.26 0.13 Asian Equity Income (No Trail) Acc F 109.51 - -1.51 4.67
Fundsmith Equity T Acc 222.26 - -0.28 1.15
Global Inflation-Linked Bd A-GBP-Hdg £ 1.15 - -0.01 0.56 UK Absolute Return A Acc 150.60 - -0.10 0.00
Fixed Interest S-IL Acc £ 6.47 6.82 -0.01 - Childrens Acc F 380.46 - -5.73 1.79 Asian Equity Income (No Trail) Inc 91.06 - -1.26 4.80
Fundsmith Equity T Inc 209.90 - -0.27 1.16
Global Real Asset Securities £ 1.35 - 0.00 0.00
Deposit Accum £ 4.44 4.67 0.00 -
UK Alpha A Acc 112.30
Asset Management
- -1.00 1.86
Balanced Risk 6 No Trail Acc 104.13 - -0.32 0.16
Asset Manageme
Corporate Bd Acc (Gross) F 207.38 - -0.20 3.50
Global Technology A-GBP

Global Telecomms A-GBP

£

£
0.27

0.28
-

-
0.01 0.00

0.00 1.17
Guardian Pensions Management Ltd
Pens. Managed Acc. £ 22.91 24.11 -0.17 -
UK Equity Income & Growth A Inc

UK Index A Acc
585.40

473.50
-

-
-4.70 3.90

-6.10 2.90
Corporate Bd Inc (Gross) F 88.11 - -0.09 3.59 Balanced Risk 8 No Trail Acc Managem 106.17 - -0.42 0.43

GAM Limited (2300)F (UK) Corporate Bond Acc F 184.49 - -0.19 3.51 Balanced Risk 10 No Trail Acc 108.08 - -0.54 0.59
India Focus A-GBP £ 4.15 - 0.03 0.00 GAM Sterling Management Limited Pens. Equity Acc. £ 33.46 35.22 -0.19 - UK Property A Acc 193.08 203.24 0.05 4.04
Corporate Bond Inc F 88.00 - -0.09 3.59 Corporate Bond (No Trail) Acc F 164.21 - -0.17 3.76
20 King Street, London SW1Y 6QY. 0800 919 927
Latin America A-GBP £ 1.31 - -0.02 0.65 UK Property A Inc 97.68 102.81 0.03 4.16
Internet: gam.com Distribution Acc F 107.34 - -0.45 4.47 Corporate Bond (No Trail) Inc F 116.32 - -0.12 3.84
Authorised Inv Funds UK Tracker A Acc 210.60 - -2.90 2.99
Distribution Acc (Gross) F 122.97 - -0.51 4.45 Distribution (No Trail) Acc F 164.75 - -0.69 4.46
GAM Funds OEIC HPB Assurance Ltd US Growth A Acc 784.90 - 5.90 0.00
GAM Global Diversified Acc 3766.42 - 4.51 0.00 Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 Distribution Inc F 62.36 - -0.26 4.56 Distribution (No Trail) Inc F 108.96 - -0.45 4.55
Findlay Park Funds Plc (IRL)
International Insurances
30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 GAM North American Gwth Acc 3147.75 - 5.46 0.00 Distribution Inc (Gross) F 62.37 - -0.26 4.56 Emerging European (No Trail) Acc F 66.73 - -1.15 3.40
Holiday Property Bond Ser 1 £ 0.50 - 0.01 0.00

Asset Management
FCA Recognised
GAM UK Diversified Acc 1689.39 - -10.20 1.14 Emerging European Acc F 32.06 - -0.56 2.84 Emerging European (No Trail) Inc F 58.97 - -1.02 3.51

Asset Management Asset Management

American Fund USD Class $ 80.75 - 0.22 0.00 Holiday Property Bond Ser 2 £ 0.60 - 0.01 0.00
Emerging European Inc F 29.23 - -0.51 2.91 European Equity (No Trail) Acc F 143.29 - -1.98 2.07
American Fund GBP Hedged £ 44.03 - 0.12 0.00
European Equity Acc F 811.21 - -11.22 1.52 European Equity (No Trail) Inc F 118.76 - -1.64 2.11
American Fund GBP Unhedged £ 53.25 - 0.17 -
GAM Limited (IRL)
Hamon Investment Group European Equity Inc F 676.87 - -9.36 1.54 European Equity Income (No Trail) Acc F 145.26 - -1.62 3.46
Latin American Fund USD Class $ 11.27 - -0.12 0.00 FCA Recognised
Other International Funds
GAM Fund Management Ltd European Equity Income Acc F 70.48 - -0.79 3.47 European Equity Income (No Trail) Inc F 110.46 - -1.24 3.55
Latin American Fund GBP Unhedged £ 7.44 - -0.07 - Asian Market Leaders - USD $ 23.75 - -0.45 0.00 Hermes Investment Funds Plc (IRL)
Georges Court, 54-62 Townsend Street, Dublin 2 + 353 1 6093927 European High Income (No Trail) Acc F 163.79 - -0.64 3.48
Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121 European Equity Income Inc F 53.59 - -0.59 3.55
GAM Star Fund Plc Asian Market Leaders - GBP £ 12.25 - -0.21 0.00
GAM Star Asia-Pacific Eqty USD Acc F $ 11.80 - -0.03 0.00 FCA Recognised European High Income Acc F 79.47 - -0.31 3.49 European High Income (No Trail) Inc F 118.72 - -0.46 3.54
Greater China - USD $ 10.21 - -0.16 0.00 Hermes Abs Return Credit Fund Class F Acc £ £ 1.00 1.00 0.00 -
GAM Star Asian Eqty USD Ord Acc F $ 12.95 - -0.14 0.00 European High Income Inc F 57.61 - -0.22 3.55 European Opportunities (No Trail) Acc F 179.51 - -3.27 1.65
Greater China - GBP £ 4.25 - -0.07 0.00 Hermes Abs Return Credit Fund Class R Acc € € 1.99 1.99 0.01 -
GAM Star Balanced GBP Acc £ 10.32 - -0.09 0.00 European Opportunities Inc F 82.85 - -1.51 1.13 European Opportunities (No Trail) Inc F 167.81 - -3.06 1.68
Selected Asian P'folio $ 45.01 45.02 -0.05 0.00 Hermes Active UK Inflation Fund Class F Acc £ 1.28 1.28 -0.01 0.00
GAM Star Cap.Appr.US Eqty USD Inc F $ 17.03 - 0.06 0.00 European Opportunities Acc F 85.71 - -1.56 1.12 European Smaller Companies (No Trail) Acc F 231.82 - -3.82 0.74
Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.50 1.50 0.00 0.00
GAM Star Cat Bond USD Acc $ 12.70 - 0.00 0.00 European Smlr Cos Acc F 188.69 - -3.11 0.23 Global Balanced Index (No Trail) Acc F 155.31 - -1.07 2.03
Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.28 3.28 -0.03 0.00
GAM Star Cautious GBP Acc £ 10.38 - -0.06 0.00 Hargreaves Lansdown Fd Mgrs (1100)F (UK) Global Bd Acc (Gross) F 130.70 - -0.10 1.17 Global Bond (No Trail) Acc F 138.02 - -0.10 1.42
Fleming Financial Trust Investment Fund Limited (NZ) Hermes Global Emerging Markets Fund Class F Acc £ 1.11 1.11 -0.02 0.00
PO Box 55736, 50 Bank Street, Canary Wharf London E14 1BT
Incorporated in New Zealand, Reg No 5141841 GAM Star China Equity USD Acc F $ 22.71 - -0.23 0.00 Global Bd Inc (Gross) F 80.48 - -0.06 1.18 Global Bond (No Trail) Inc F 124.78 - -0.09 1.43
Enquiries 0117 90090000 Hermes Global Emerging Markets Fund Class R Acc € 2.85 2.85 -0.04 0.00
Registered address: Level 5, 3 City Road, Graftn, Auckland, 1010, New Zealand
GAM Star Cont European Eqty GBP Acc F £ 3.60 - -0.01 0.00 www.hl.co.uk Global Bond Acc F 122.80 - -0.09 1.17 Glbl Distribution Acc (No Trail) 105.62 - -0.25 3.89
www.fftinvestmentfund.com
Authorised Inv Funds Hermes Global Equity Fund Class F Acc £ 1.49 1.49 0.00 0.00
info@fftinvestmentfund.com GAM Star Cred Opportunities GBP Acc £ 12.37 - 0.00 4.57 Global Bond Inc F 80.44 - -0.05 1.18 Glbl Distribution Inc (No Trail) 100.09 - -0.24 3.97
Hargreaves Lansdown Funds Hermes Global Equity Fund Class R Acc € 3.96 3.96 -0.01 0.00
Other International Funds Gbl Emerging Markets (No Trail) Acc F 147.83 - -2.24 1.59
GAM Star Defensive GBP Acc £ 10.84 - -0.05 0.00 Unit Trust Glbl Distribution Acc 52.40 - -0.13 4.94
Fleming FT Investment Fund Hermes Global ESG Equity Fund Class F Acc £ 1.15 1.15 0.00 0.00
HL Multi-Manager Special Situations Trust A Acc 265.61 279.58 -1.72 0.52 Glbl Distribution Acc (Gross) 53.12 - -0.12 4.94 Gbl Emerging Markets (No Trail) Inc F 137.36 - -2.08 1.61
Fleming Fund £ 4.68 4.68 -0.01 - GAM Star Discretionary FX USD Acc F $ 12.80 - -0.13 0.00
Hermes Global High Yield Bond Fund Class F Acc £ 1.04 1.04 0.00 0.00
GAM Star Dynamic Gbl Bd USD Acc H $ 9.71 - -0.09 0.00
HL Multi-Manager Special Situations Trust M Acc
Asset Management
265.62 279.60 -1.71 0.42 Glbl Distribution Inc 49.66 - -0.11 4.95 Global Equity (No Trail) acc F 202.40 - -1.01 1.18

GAM Star Emerg. Market Rates USD Acc F $ 11.39 - -0.05 0.00
HL Multi-Manager Income & Growth Trust A Acc

HL Multi-Manager Income & Growth Trust M Acc

162.67 171.16 -1.19 3.83

162.68 171.16 -1.20 1.79

Hermes Global High Yield Bond Fund Class R Acc €

Hermes Global Small Cap Fund Class F Acc £ £

2.74

0.98
2.74 -0.01 0.00

0.98 0.00 -
Glbl Distribution Inc (Gross) Asset Management 49.66 - -0.12 4.95 Global Equity (No Trail) inc F 187.27 - -0.93 1.20

GAM Star European Eqty USD Acc F $ 23.54 - -0.11 0.00 Global Emerging Markets Acc F 225.46 - -3.41 0.99 Global Equity Income (No Trail ) Acc F 242.43 - -1.10 3.59
HL Multi-Manager Income & Growth Trust A Inc 97.53 102.62 -0.72 3.91 Hermes Global Small Cap Fund Class R Acc € € 1.95 1.95 -0.01 -
GAM Star Flexible Gbl Port GBP Ac £ 12.52 - -0.02 0.00 Global Emerging Markets Inc F 203.31 - -3.08 1.00 Global Equity Income (No Trail) Inc F 196.90 - -0.90 3.69
HL Multi-Manager Income & Growth Trust M Inc 97.53 102.62 -0.71 1.81 Hermes Multi Asset Inflation Fund Class F GBP Acc £ 0.98 0.98 -0.01 0.00
GAM Star GAMCO US Equity Acc F $ 12.88 - -0.01 0.00 Global Equity (acc) F 458.34 - -2.28 0.64 Global ex UK Core Equity Index ( No Trail) Acc F 171.53 - -0.61 1.55
HL Multi-Manager Balanced Managed Trust A Acc 181.81 191.21 -0.99 1.10 Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.02 1.02 0.00 0.00
GAM Star Global Rates USD Acc F $ 12.26 - -0.08 0.00 Global Equity (inc) F 415.51 - -2.06 0.64 Global ex UK Enhanced Index ( No Trail) Acc F 199.39 - 0.02 2.04
HL Multi-Manager Balanced Managed Trust M Acc 181.82 191.22 -0.99 0.71 Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.27 1.27 -0.01 0.00
First State Investments (UK) (1200)F (UK) GAM Star Global Selector USD Acc F $ 12.89 - -0.02 0.00 Global Equity Income Acc F 117.15 - -0.53 3.60 Gbl Fin Cap No Trail Acc 179.24 - -0.07 4.27
23 St Andrew Square, Edinburgh, EH2 1BB HL Multi-Manager Equity & Bond Trust A Inc 107.71 113.21 -0.43 2.25 Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.23 1.23 -0.01 1.29
GAM Star Japan Eqty USD Acc F $ 13.47 - 0.06 0.00 Global Equity Income Inc F 95.15 - -0.43 3.70 Gbl Fin Cap No Trail Inc 150.85 - -0.06 4.40
enquiries@firststate.co.uk Hermes Sourcecap EU Alpha Fund Class R Acc € 3.10 3.10 -0.04 0.00
HL Multi-Manager Equity & Bond Trust M Inc 107.70 113.19 -0.43 1.04 Gbl Financial Capital Acc 87.92 - -0.03 4.28 Global Opportunities (No Trail) Acc F 235.51 - -1.87 1.02
Client Services: 0800 587 4141 Dealing Line: 0800 587 3388 GAM Star Keynes Quant Strat USD Acc F $ 11.66 - 0.01 0.00
Authorised Funds HL Multi-Manager Equity & Bond Trust A Acc 146.11 153.57 -0.58 2.22 Hermes Sourcecap EX UK Fund Class F Acc £ 1.34 1.34 -0.02 0.00
GAM Star Local EM Rates and FX USD Acc $ 10.63 - 0.00 0.00 Gbl Financial Capital Inc 73.98 - -0.03 4.41 Global Smaller Companies (No Trail) Acc F 240.26 - -1.05 0.75
Asia Pacific A Shares 910.55 - -3.91 0.46 Hermes Sourcecap EX UK Fund Class R Acc € 3.18 3.18 -0.05 0.00
HL Multi-Manager Equity & Bond Trust M Acc 146.12 153.57 -0.58 1.03 Gbl Financial Cap Acc Gross 92.05 - -0.03 4.78 Global Smaller Companies (No Trail) Inc F 229.57 - -1.01 0.75
GAM Star North of South EM Equity Acc F $ 9.74 - -0.08 0.00
Asia Pacific Leaders A Shares 457.02 - -2.25 0.30 Hermes UK Small & Mid Cap Fund Class F Acc £ 1.66 1.66 0.00 0.00
HL Multi-Manager Strategic Bond Trust A Acc 167.13 172.29 -0.23 1.80 Gbl Financial Cap Inc Gross 74.18 - -0.03 4.96 Global Targeted Rets (No Trail) Acc 113.65 - -0.02 0.83
GAM Star Technology USD Acc F $ 15.62 - 0.01 0.00
Asia Sustainability A Shares 341.59 - -2.21 0.44
16 | FTfm FINANCIAL TIMES Monday 14 December 2015

FTfm

Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield

High Income (No Trail) Acc F 172.41 - -1.47 3.27 Global Equity Acc 1002.00 - 2.00 0.15 JB Strategy Growth-CHF/B SFr 90.93 - -0.09 0.00 Global Equity Income Inc 80.69 - -0.47 5.81 Eurozone Small&Mid Caps PA € 54.24 - -0.34 0.00

High Income (No Trail) Inc F 126.76 - -1.08 3.35 Global Equity Inc 74.49 - 0.14 0.14 JB Strategy Growth-EUR € 114.57 - -0.08 0.00 Managed Bal Inc 132.60 - -0.90 2.12 Fdmt.Eq.L/S SH Sd EUR PA € 10.70 - 0.00 0.00
Invesco Global Asset Management Ltd (IRL)
High Yield Fund (No Trail) Acc 218.84 - 1.45 5.21 Global Financials Acc 715.10 - -3.70 0.87 JB Strategy Inc-CHF/B SFr 118.48 - -0.14 0.00 UK Income Acc 1136.00 - -11.00 4.50 Fdmt.Eq.L/S SH Sd USD PA $ 10.74 - 0.00 0.00
Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
High Yield Fund (No Trail) Inc 161.29 - 1.07 5.35 FCA Recognised Global Financials Inc 40.67 - -0.21 0.88 JB Strategy Inc-EUR/B € 158.80 - -0.12 0.00 UK Income Inc 558.80 - -5.30 4.59 Gbl.Gvt.Fdmt PA € 10.50 - 0.02 0.00
Invesco Stlg Bd A QD F £ 2.59 - 0.00 3.30
Hong Kong & China (No Trail) Acc F 181.10 - -2.55 1.24 Global High Yield Bd Mth Inc C 35.22xd - -0.09 7.04 JB Strategy Inc-USD/B $ 145.32 - -0.15 0.00 UK Omega Acc 196.70 - -3.00 1.56 Gbl.Gvt.Fdmt.(CHF) PA SFr 22.76 - 0.01 0.00
Invesco Asian Equity A $ 6.08 - -0.04 0.53
Income & Growth (No Trail) Acc F 218.52 - -2.15 4.03 Global High Yield Bd Acc C 93.62xd - -0.23 6.95 UK Omega Inc 186.00 - -2.90 1.61 Gbl.Gvt.Fdt.SH (CHF) PA SFr 26.47 - 0.00 0.00
Invesco ASEAN Equity A $ 86.21 - -0.87 0.45
Income & Growth (No Trail) Inc F 172.98 - -1.71 4.15 Global High Yield Bd Inc C 35.37xd - -0.09 7.04 UK Smaller Cos Inc 1672.00 - -7.00 1.05 Gbl.5B Fdmt (EUR) PA € 11.80 - 0.02 0.00
Invesco Bond A $ 26.81 - -0.01 2.22
Income (No Trail) Acc F 170.27 - -2.17 3.12 Global Property Secs Acc 56.89 - -0.50 0.60 Gbl.5B Fdmt (CHF) PA SFr 10.43 - -0.01 0.00
Invesco Continental Eurp Small Cap Eqty A $ 196.33 - -1.67 0.00
Income (No Trail) Inc F 124.65 - -1.60 3.19 Global Property Secs Inc 49.10 - -0.43 0.59 Gbl.5B Fdmt SH (USD) PA $ 10.89 - 0.00 0.00
Invesco Emerging Markets Equity A $ 34.05 - -0.56 0.00 LF Funds (Banque Libano-Francaise Group) (LUX)
Japan (No Trail) Acc F 147.13 - 0.22 0.78 Income Acc ... C 48.84xd - -0.06 6.59 Generation Global (CHF) PA F SFr 13.73 - 0.01 0.00
www.eblf.com - lffunds@eblf.com
Invesco Emerging Markets Bond A $ 20.56 - -0.05 4.73
Japanese Smaller Companies (No Trail) Acc F 167.58 - 1.64 0.00 Income Inc ... C 45.20xd - -0.05 6.68 Regulated Generation Global (EUR) PA F € 20.90 - 0.04 0.00
Invesco Continental European Equity A € 8.56 - -0.12 0.19 LF Total Return Bond Fund - Class A $ 116.77 - 0.15 0.00
Latin American (No Trail) Acc F 94.36 - -2.19 1.85 Japan Acc 298.80 - 2.90 0.00 Kames Capital ICVC (UK) Generation Global (USD) PA F $ 15.58 - -0.01 0.00
Invesco Gilt A £ 15.00 - -0.03 1.40 Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA LF Total Return Bond Fund - Class D $ 114.78 - 0.15 0.00
Latin American (No Trail) Inc F 84.74 - -1.97 1.88 Japan Inc 71.93 - 0.69 0.00 Global Energy (USD) PA F $ 6.17 - 0.07 0.00
0800 45 44 22 www.kamescapital.com
Invesco Global Small Cap Equity A NAV $ 118.08 - -0.66 0.00
Managed Growth (No Trail) Acc F 189.87 - -1.27 1.23 Multi-Asset Inc Mth Inc ... C 62.76xd - -0.25 3.66 Authorised Funds Golden Age (CHF) PA F SFr 21.36 - 0.01 0.00
Invesco Global High Income A NAV $ 11.86 - -0.03 5.46 Diversified Income B Acc 111.25 - -0.32 0.00
Managed Growth (No Trail) Inc F 174.61 - -1.17 1.24 Multi-Asset Inc Acc... C 83.83xd - -0.33 3.66 Golden Age (EUR) PA € 14.53 - 0.00 0.00
Lloyds Investment Fund Managers Limited (1000)F (JER)
Invesco Gbl R/Est Secs A GBP F F £ 7.61 - -0.06 0.89 Diversified Income B Inc 101.41 - -0.29 0.00
Managed Income (No Trail) Acc F 187.38 - -1.02 2.96 Multi-Asset Inc Inc... C 62.93xd - -0.25 3.75 PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 Golden Age (USD) PA F $ 20.17 - 0.01 0.00
Invesco Global Health Care A $ 126.90 - 1.02 0.00 Diversified Growth B Acc £ 1.39 - 0.00 3.37 Other International Funds
Managed Income (No Trail) Inc F 153.14 - -0.83 3.02 Multi-Asset Macro Acc 65.11 - 0.16 0.00 Sh.T- Money Mkt EUR PA € 112.28 - 0.00 0.00
Lloydstrust Gilt £ 12.2100 - -0.0300 2.40
Invesco Global Select Equity A $ 12.83 - -0.08 0.00 Ethical Cautious Managed B Acc £ 1.21 - -0.01 2.29
Monthly Income Plus (No Trail) Acc F 169.24 - -0.28 4.83 Multi-Asset Macro Inc 65.12 - 0.17 0.00 Sh.T- Money Mkt CHF PA SFr 128.55 - 0.00 0.00
Lloyds Investment Funds Limited
Invesco Jap Eqty Core A $ 1.80 - 0.00 0.00 Ethical Cautious Managed B Inc £ 1.15 - -0.01 2.33
Monthly Income Plus (No Trail) Inc F 106.21 - -0.18 4.93 Multi-Manager Growth Acc 715.20 - -4.50 0.47 Euro High Income € 1.6160 - 0.0000 2.91 Sh.T- Money Mkt GBP PA £ 10.28 - 0.00 0.00
Invesco Japanese Equity A $ 19.03 - 0.11 0.00 Ethical Corporate Bond B Acc £ 1.70 - 0.00 3.68
Pacific (No Trail) Acc F 176.74 - -0.65 0.87 Multi-Manager Growth Inc 667.50 - -4.10 0.47 European £ 7.3250 - -0.0370 1.28 Sh.T- Money Mkt USD PA $ 10.31 - 0.00 0.00
Invesco Korean Equity A $ 30.19 - -0.07 0.00 Ethical Corporate Bond B Inc £ 0.99 - 0.00 3.75
Pacific (No Trail) Inc F 166.27 - -0.61 0.95 Natural Resources Acc 308.40 - -2.30 0.13 High Income £ 0.8607xd - -0.0011 5.00 Sw.Fr.Bd(For) PA SFr 23.68 - 0.00 0.00
Invesco PRC Equity A $ 50.46 - -0.60 0.00 Ethical Equity B Acc £ 1.98 - -0.02 2.11
Tactical Bond (No Trail) Acc F 140.44 - 0.03 1.31 Natural Resources Inc 21.84 - -0.16 0.13 International £ 3.8730 - -0.0110 1.16 Sw.Fr.Credit Bd(For) PA SFr 13.58 - 0.00 0.00
Invesco Pacific Equity A $ 46.42 - -0.22 0.19 High Yield Bond B Acc £ 2.41 - 0.00 5.18
Tactical Bond (No Trail) Inc F 119.05 - 0.02 1.32 Portfolio Acc 197.00 - -1.80 0.69 North American £ 15.3700 - 0.0500 0.11 Tactical Alpha (CHF) PA SFr 10.03 - -0.02 0.00
Invesco Global Technology A $ 16.31 - 0.07 0.00 High Yield Bond B Inc £ 0.96 - 0.00 5.30
UK Focus (No Trail) Acc F 156.75 - -2.57 2.38 Sterling Corporate Bond Acc 82.86xd - -0.10 2.33 Tactical Alpha (EUR) PA € 10.33 - -0.02 0.00
Asset Management
Sterling Bond £ 1.4660 - -0.0020 3.61
Invesco UK Eqty A £ 7.69 - -0.11 1.37 Investment Grade Bond B Acc 159.47 - -0.05 1.50
UK Focus (No Trail) Inc F

UK Enhanced Index (No Trail) Acc F

131.89

383.63
-

-
-2.17 2.43

-4.93 3.60
Sterling Corporate Bond Inc

Strategic Bond Acc

51.79xd

68.22xd
-

-
-0.07 2.34

-0.11 3.19
Investment Grade Bond B Inc £ 1.16 - 0.00 3.58
UK

Lloyds Gilt Fund Limited

Asset Management
£ 6.2890 - -0.0410 1.72 Tactical Alpha (USD) PA

Technology PA
$ 14.87

€ 13.42
-

-
-0.02 0.00

0.04 0.00
Asset
Sterling Corporate Bond B Acc £ 0.74 - 0.00 3.38 Lloyds Gilt Fund Quarterly Share £ 1.2710 - -0.0030 1.88
UK Enhanced Index (No Trail) Inc F 238.94 - -3.07 3.69 Strategic Bond Inc 56.63xd - -0.09 3.21 Technology PA $ 20.33 - 0.06 0.00
Sterling Corporate Bond B Inc £ 0.32 - 0.00 3.45 Monthly Share £ 1.2210xd - -0.0030 1.88
UK Growth (No Trail) Acc F 137.62 - -2.08 2.40 UK Active Index + E Acc 270.00 - -3.50 3.18 Wld Gold Expertise PAF SFr 8.82 - -0.03 0.00
Strategic Bond B Acc £ 1.12 - 0.00 2.75 Lloyds Money Fund Limited
UK Growth (No Trail) Inc F 112.60 - -1.71 2.45 UK Active Index + E Inc 50.91 - -0.67 3.18 Wld Gold Expertise PA € 7.03 - -0.03 0.00
Strategic Bond B Inc £ 1.16 - -0.01 2.79 Sterling Class £ 52.6140 - 0.0000 0.14
UK Smaller Companies Equity (No Trail) Acc F 286.68 - -0.86 1.26 UK Dynamic Acc 156.30 - -1.90 1.51 Wld Gold Expertise PA $ 9.39 - -0.03 0.00
UK Equity B Acc £ 2.53 - -0.02 2.35 Lloyds Multi Strategy Fund Limited
UK Smaller Companies Equity (No Trail) Inc F 264.47 - -0.79 1.28 UK Dynamic Inc 127.80 - -1.60 1.52 Conservative Strategy £ 1.0940 - -0.0030 1.97 LO Selection
Invest AD UK Equity Absolute Return B Acc £ 1.24 - 0.01 0.00 Balanced (CHF) PA F SFr 106.90 - -0.11 0.00
UK Strategic Income (No Trail) Acc F 720.31 - -6.63 3.50 UK Eq & Bond Inc Acc ... C 138.10xd - -1.20 3.43 Growth Strategy £ 1.4640 - -0.0050 1.32
Client services: +971 2 692 6101 clientservices@InvestAD.com
UK Equity Income B Acc £ 2.10 - -0.02 4.70 Balanced (EUR) PA F € 125.05 - -0.03 0.00
UK Strategic Income (No Trail) Inc F 530.71 - -4.89 3.58 Other International Funds UK Eq & Bond Inc Inc ... C 80.38xd - -0.68 3.51 Aggressive Strategy £ 1.7850 - -0.0030 0.00
Invest AD - Iraq Opportunity Fund $ 60.60 - 1.17 0.00 UK Equity Income B Inc £ 1.62 - -0.02 4.83 Conservative (CHF) PA F SFr 103.31 - -0.13 0.00
US Equity (No Trail) Acc F 222.80 - 1.56 0.11 UK Higher Inc Acc ... C 880.80 - -9.20 4.25 Global USD Growth Strategy $ 1.3850 - -0.0010 0.00
Invest AD - Emerging Africa Fund $ 906.13 - 3.98 0.00 UK Opportunities B Acc £ 1.72 - -0.02 2.28 Conservative (EUR) PA F € 113.99 - -0.04 0.00
UK Higher Inc Inc ... C 511.90 - -5.30 4.39 Dealing Daily
Invest AD - GCC Focus Fund $ 1385.06 - -9.80 0.00 UK Smaller Companies B Acc £ 2.91 - -0.01 1.45 Global Allocation (GBP) PA F £ 10.00 - -0.03 0.00
UK Managed Equity Acc 63.40xd - -0.79 2.23
Growth (CHF) PA F SFr 111.60 - -0.13 0.00
UK Managed Equity Inc 53.07xd - -0.66 2.26
Lohengrin Management Ltd (BAH) Growth (EUR) PA F € 135.26 - -0.05 0.00
UK Smaller Cos Acc 385.60xd - -6.80 0.27 Lohengrin@genesisfundservices.com Tel: 242-502-7020
Kames Capital Investment Portfolios ICVC (UK)
Other International Funds Vantage 1500 (EUR) MA € 10.19 - -0.01 0.00
UK Smaller Cos Inc 74.67xd - -1.31 0.27 Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA
0800 45 44 22 www.kamescapital.com Lohengrin Fund Ltd - Class C € 47.25 - -81.87 0.00 Vantage 3000 (EUR) MA € 10.31 - -0.01 0.00
UK Strategic Eq Inc Acc ... C 146.20xd - -2.00 3.87
Authorised Funds
PrivilEdge
Invesco (LUX) UK Strategic Eq Inc Inc ... C 94.57xd - -1.30 3.96 Property Income B Acc 118.92 - -0.16 4.53
Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 Inc.Pt.RMB Dt.CNH PA CNH 102.76 - -0.06 0.00
UK Strategic Gth Acc 110.30 - -1.10 1.19 Property Income B Inc 110.26 - -0.16 4.67
FCA Recognised Inc.Pt.RMB Dt.SH CHF PA SFr 9.70 - 0.02 0.00
JPMorgan Asset Mgmt (1200)F (UK)

Asse
Invesco Management SA UK Strategic Gth Inc 102.90 - -1.00 1.21
60 Victoria Embankment, London EC4Y 0JP Inc.Pt.RMB Dt.SH EUR PA € 9.79 - 0.02 0.00
Invesco Active Multi-Sector Credit Fund A € 2.88 - 0.00 0.00
Asset Management Brokerline: 0800 727 770, Clients: 0800 20 40 20 US Acc 717.90 - 3.90 0.00

Asset Management Asset Management

Inc.Pt.RMB Dt.USD PA $ 9.86 - 0.02 0.00
Invesco Asia Balanced A dist $ 13.70 - -0.09 3.72 Authorised Inv Funds Kames Capital VCIC (IRL)
US Inc 99.36 - 0.54 0.00
JPM Retail OEIC (A class unless stated) 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 Jenn. US Eq.Opp. USD PA $ 9.41 - 0.03 0.00
Invesco Asia Consumer Demand Fund A income $ 12.14 - -0.13 0.24
America Equity Acc 61.87xd - 0.41 0.00 US Equity Income Acc ... C 120.40xd - 0.50 2.16 FCA Recognised
Invesco Asia Infrastructure (A) $ 11.89 - -0.15 0.78 Absolute Return Bond B GBP Acc 1081.12 - -0.07 - Lombard Odier Funds (Europe) S.A (LUX) Neubrg.Berman US Core PA $ 13.87 - 0.04 0.00
America Equity Inc 61.87xd - 0.41 0.00 US Equity Income £ hdg Inc ... C 98.56xd - 0.19 2.23 www.loim.com
Sands US Growth PA € 14.53 - 0.06 0.00
Invesco Asia Opportunities Equity A $ 98.53 - -1.05 0.00 Eq Market Neutral B Acc 1019.25 - 1.14 - Regulated
Asia Acc 114.40 - -0.80 0.34 US Equity Income Inc ... C 102.20xd - 0.50 2.18
Lombard Odier Funds Sands US Growth PA $ 17.56 - 0.08 0.00
Invesco Balanced Risk Allocation Fund A € 14.44 - -0.08 0.00 Eq Market Neutral Plus B Acc 1028.50 - 2.53 -
Asia Inc 63.48 - -0.47 0.33 US Select Acc 112.40 - 0.70 0.00 Absolute Ret Bond (EUR) PA € 11.97 - 0.00 0.00 Will.Blair Gbl. Ldrs PA € 16.05 - 0.00 0.00
Invesco Emerging Europe Equity Fund A $ 7.46 - -0.13 0.00 High Yield Global Bond A GBP Inc 516.75 - -0.42 3.64
Cautious Managed Rt Acc 67.76xd - 0.01 0.38 US Select Inc 111.00 - 0.70 0.00 Absolute Ret Bond (USD) PA $ 17.60 - 0.00 0.00 Will.Blair Gbl. Ldrs PA $ 13.10 - -0.02 0.00
Invesco Emerging Local Currencies Debt A Inc $ 6.54 - -0.12 6.93 High Yield Global Bond B GBP Inc 1073.56 - -0.87 4.14
Cautious Managed Rt Inc 59.60xd - 0.00 0.38 US Smaller Cos Acc 374.10xd - 0.70 0.00 All Roads (CHF) PA SFr 17.27 - -0.03 0.00
Invesco Emerging Mkt Quant.Eq. A $ 8.61 - -0.17 0.00 Investment Grade Global Bd A GBP Inc 554.69 - -0.57 2.36
Diversified Real Ret Acc 49.96 - -0.25 1.08 US Smaller Cos Inc 98.04xd - 0.20 0.00 All Roads (USD) PA $ 11.02 - -0.01 0.00
Invesco Energy A $ 17.10 - 0.14 0.00 Kames Global Equity Income B GBP Acc 1164.03 - -4.57 -
Diversified Real Ret Inc 48.53 - -0.24 1.09 All Roads (GBP) PA £ 11.25 - -0.02 0.00 Lothbury Property Trust (UK)
Invesco Euro Corporate Bond Fund (A) € 17.03 - -0.02 0.00 Kames Global Equity Income B GBP Inc 1109.57 - -4.36 - 155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900
Emerging Mkts Acc 126.00 - -3.60 0.82 All Roads (EUR) PA € 11.16 - -0.01 0.00 Property & Other UK Unit Trusts
Invesco Euro Inflation Linked Bond A € 15.69 - -0.01 0.00 JPMorgan Charity Funds (UK) Strategic Global Bond A GBP Inc 1091.33 - -0.05 0.71
Emerging Mkts Inc 54.21 - -1.54 0.82 Alpha Japan (EUR) PA F € 11.64 - -0.12 0.00 Lothbury Property Trust GBP £ 1787.34 1916.91 11.71 3.22
60 Victoria Embankment, London EC4Y 0JP 020 7742 9175
Invesco Euro Reserve A € 322.71 - 0.00 0.00 Strategic Global Bond B GBP Inc 619.14 - -0.02 1.21
Emrg Eur Eq Acc 126.90 - -2.70 2.86 Property & Other UK Unit Trusts Alpha Japan (CHF) PA F SFr 14.52 - -0.15 0.00
Invesco Euro Bond A € 7.14 - -0.01 0.00 UK Equity Fund for Charities I...C £ 2.716814 2.727621 1.678631 3.64
Emrg Eur Eq Inc 30.16 - -0.64 2.82 Alpha Japan (JPY) PA F ¥ 1384.00 - -14.00 0.00
Invesco European Growth Equity A € 24.26 - -0.35 0.00 Bond Fund for Charities £ 1.344356 1.350386 0.306173 3.56
Emrg Mkts Inc Acc... C 44.08xd - -1.15 5.60 Alpha Japan (USD) PA F $ 16.68 - -0.17 0.00
Kleinwort Benson Bank (UK)
Invesco Global Absolute Return Fund A Class € 11.63 - -0.03 0.00
Emrg Mkts Inc Inc... C 38.45xd - -1.01 5.77 14 St. George Street, Mayfair, London W1S1FE Alternative Beta PA F SFr 114.20 - 0.03 0.00
Invesco Global Bond A Inc $ 5.52 - -0.01 0.75 Dealing and enquiries: 0800 024 2400
Europe Acc 1036.00 - -13.00 1.50 Alternative Beta PA F € 77.20 - 0.02 0.00
Authorised Inv Funds
Invesco Global Conservative Fund 90 (EUR) A € 11.92 - 0.02 0.00
Europe Inc 59.62 - -0.75 1.50 Unit Trust Manager/ACD - Host Capital Alternative Beta PA F $ 115.53 - 0.05 0.00
Invesco Global Equity Income Fund A $ 57.95 - -0.32 0.00 HC KB Capital Growth A Acc 165.72 - -1.39 1.36
Eur Dynamic exUK Acc 157.50 - -2.30 0.83 Commodities (CHF) PA SFr 4.92 - -0.02 0.00 M & G Securities (1200)F (UK)
Invesco Global Inc Real Estate Sec A dist $ 8.97 - -0.05 2.23 HC KB Capital Growth A Inc 155.18 - -1.30 1.38 PO Box 9039, Chelmsford, CM99 2XG
Eur Dynamic exUK £ hdg Acc 182.00 - -3.30 0.72 Commodities (EUR) PA € 4.99 - -0.02 0.00 www.mandg.co.uk Enq: 0800 390 390, Dealing: 0800 328 3196
Invesco Global Inv Grd Corp Bond A Dist $ 11.80 - -0.01 3.03 HC KB Enterprise Equity Income A Inc 106.77 - -0.56 3.06
Eur Dynamic exUK Inc 72.31 - -1.07 0.83 Commodities (USD) PA $ 5.17 - -0.02 0.00 Authorised Inv Funds
Invesco Global Leisure A $ 36.88 - 0.06 0.00 GAM HC KB Enterprise Equity Income A Acc 158.63 - -0.83 3.69 Charifund Inc 1384.85 - -12.46 5.00
Eur Smaller Cos Acc 499.30xd - -4.50 0.03 Convertible Bd P A € 17.44 - -0.02 0.00
funds@gam.com, www.jbfundnet.com
Invesco Global Smaller Comp Eq Fd A $ 56.88 - -0.12 0.00 HC KB Endeavour Multi Asset Balanced A Acc 128.53 - -0.70 0.81 Charifund Acc 19114.44 - -171.91 4.84
Eur Smaller Cos Inc 64.93xd - -0.58 0.02 Regulated Convertible Bd Asia PA F SFr 13.58 - 0.00 0.00
Invesco Global Structured Equity A $ 46.26 - -0.19 0.73 JB BF ABS-EUR B € 104.85 - 0.01 0.00 HC KB Endeavour Multi Asset Balanced A Inc 122.16 - -0.66 0.81 M&G Corporate Bond A Acc 62.71 - -0.05 3.16
Fusion Balanced Acc 54.39 - -0.28 0.48 Convertible Bd Asia PA F € 14.50 - 0.00 0.00
Invesco Global Total Ret.(EUR) Bond Fund A € 13.19 - -0.02 0.00 JB BF Abs Ret Def-EUR B € 109.28 - -0.08 0.00 HC KB Enterprise Fixed Income A Acc 122.47 - 0.00 3.44 M&G Corporate Bond A Inc 39.39 - -0.03 3.16
Fusion Balanced Inc 54.78 - -0.28 0.47 Convertible Bd Asia PA F $ 14.62 - 0.00 0.00
Invesco Gold & Precious Metals A $ 3.55 - -0.01 0.00 JB BF Abs Ret EM-USD B $ 113.61 - -0.34 0.00 HC KB Enterprise Fixed Income A Inc 108.71 - 0.00 3.44 M&G Dividend A Inc 59.25 - -0.59 4.60
Fusion Conservative Acc 53.86 - -0.22 0.66 Emerg. Consumer (CHF) PA SFr 11.26 - -0.10 0.00
Invesco Greater China Equity A $ 43.26 - -0.60 0.00 JB BF Abs Ret-EUR B € 127.95 - -0.04 0.00 M&G Dividend A Acc 593.46 - -5.95 4.44
Fusion Conservative Inc 53.80 - -0.22 0.68 Emerg. Consumer (EUR) PA € 11.42 - -0.09 0.00
Invesco India Equity A $ 49.23 - -0.65 0.00 JB BF Abs Ret Pl-EUR B € 126.66 - 0.02 0.00 M&G Episode Growth X Inc 50.54xd - -0.30 1.81
Fusion Growth Acc 55.76 - -0.26 0.48 Emerg. Consumer (USD) PA $ 11.40 - -0.09 0.00
Invesco Japanese Equity Adv Fd A ¥ 3845.00 - 19.00 0.00 JB BF EM Corporate-USD B $ 106.63 - -0.15 0.00 M&G Episode Income A Acc 134.82xd - -0.29 3.60
Fusion Growth Inc 55.75 - -0.27 0.48 Emerg.Eq. Risk Par.(EUR) PA € 7.38 - -0.06 0.00
Invesco Japanese Value Eq Fd A ¥ 1286.00 - 7.00 0.00 JB BF EM Infl Link-USD B $ 79.60 - -1.14 0.00 M&G Episode Income A Inc 112.15xd - -0.24 3.68
Fusion Growth + Acc 58.06 - -0.32 0.48 Emerg. Eq. Risk Par.(USD) PA $ 5.64 - -0.06 0.00
Invesco Latin American Equity A $ 5.66 - -0.13 0.00 JB BF EM Inv Grade-USD B $ 97.38 - -0.37 0.00 M&G Extra Income A Inc 700.97xd - -5.64 4.64
Fusion Growth + Inc 58.07 - -0.32 0.48 Emerg. Loc.Cur.&Bds DH (CHF) PASFr 7.79 - -0.04 0.00
Invesco Nippon Small/Mid Cap Equity A ¥ 1019.00 - 12.00 0.00 JB Emerging (EUR)-EUR B € 330.68 - -1.06 0.00 M&G Extra Income A Acc 5783.14xd - -46.53 4.50
Fusion Income Acc...C 53.56xd - -0.10 2.38 Emerg.Loc.Cur.Bd.Fdt PA SFr 8.20 - -0.05 0.00
Invesco Pan European Equity A EUR Cap NAV € 18.64 - -0.31 0.00 JB Emerging (USD)-USD B $ 404.65 - -1.29 0.00 Lazard Fund Managers Ltd (1200)F (UK) M&G Global Basics A Inc 596.23 - -4.36 0.62
Fusion Income Inc...C 50.61xd - -0.09 2.42 Emerg.Loc.Cur.Bd.Fdt PA € 10.92 - -0.05 0.00
Mellon House Ingrave Rd Brentwood Essex CM15 8TG
Invesco Pan European High Income Fd A € 13.73 - -0.06 2.38 JB BF Local EM-USD B $ 244.87 - -2.54 0.00 M&G Global Basics A Acc 905.98 - -6.63 0.57
Global Allocation Acc 53.00xd - -0.11 0.91 Dealing: 0870 6066408, Info: 0870 6066459 Emerg.Loc.Cur.Bd.Fdt PA $ 8.30 - -0.05 0.00
Invesco Pan European Small Cap Equity A € 22.89 - -0.40 0.00 JB BF Total Ret-EUR B € 96.94 - -0.27 0.00 Authorised Inv Funds M&G Global Dividend Fund A Acc 181.10 - -0.62 3.38
Global Allocation Inc 52.18xd - -0.12 0.92 Euro BBB-BB Fdt PA SFr 15.44 - 0.02 0.00
Lazard Investment Funds (OEIC) Retail Share Class
Invesco Pan European Structured Equity A € 17.02 - -0.27 0.00 JB EF Abs Ret Eur-EUR B € 120.71 - 0.16 0.00 M&G Global Dividend Fund A Inc 142.92 - -0.49 3.45
Global Bond exUK Acc 251.40 - -0.20 0.73 Developing Markets Acc 69.47 - -1.06 0.00 Euro BBB-BB Fdt PA € 12.28 - 0.01 0.00
Invesco UK Eqty Income A £ 30.97 - -0.40 0.00 JB EF Euro Value-EUR B € 174.26 - -0.24 0.00 M&G Glbl Emrgng Mkts A Acc 175.64 - -2.63 0.97
Global Bond exUK Inc 197.70 - -0.20 0.73 Developing Markets Inc 68.63 - -1.05 0.00 Euro BBB-BB Fdt PA £ 10.85 - 0.01 0.00
Invesco UK Investment Grade Bond A £ 0.98 - 0.00 2.90 JB EF Japan-JPY B ¥ 17558.00 - 78.00 0.00 M&G Glbl Emrgng Mkts A Inc 169.68 - -2.54 0.98
Global Bond Opport. Acc 48.66 - -0.11 2.90 Emerging Markets Acc 209.10 - -4.30 1.62 Euro BBB-BB Fdt PA $ 17.44 - 0.02 0.00
Invesco US Structured Equity A $ 20.86 - -0.04 0.00 JB EF Luxury B-EUR B € 217.33 - -0.77 0.00 M&G Global Macro Bond Fund A Acc 104.78xd - -0.02 1.31
Global Bond Opport. Inc 47.52xd - -0.11 2.97 Emg Mkts Inc 182.70 - -3.80 1.64 Euro Credit Bd PA F € 12.89 - 0.01 0.00
Invesco US Value Eq Fd A $ 30.91 - 0.13 0.00 JB Ms EF Special Val. EUR/A € 135.56 - 0.31 1.10 M&G Global Macro Bond Fund A Inc 72.58xd - -0.03 1.31
Global Eq Income £ hdg Acc... C 67.50xd - -0.18 3.20 European Alpha Acc 641.50 - -7.20 1.46 Euro Government Fdt PA € 12.58 - 0.02 0.00
Invesco USD Reserve A $ 87.02 - 0.00 0.00 JB Strategy Balanced-CHF/B SFr 148.20 - -0.18 0.00 M&G Global High Yield Bond X Inc 47.87xd - -0.17 4.65
Global Eq Income £ hdg Inc ... C 48.32xd - -0.13 3.27 European Alpha Inc 582.70 - -6.60 1.45 Euro Inflation-Lk Fdt PA € 12.03 - 0.01 0.00
JB Strategy Balanced-EUR € 153.53 - -0.16 0.00 M&G Global High Yield Bond X Acc 113.28xd - -0.39 4.63
Global Eq Income Acc... C 70.56xd - -0.05 3.20 European Smaller Cos Acc 436.00 - -3.40 0.44 Euro Resp.Corp. Fdt PA € 18.14 - 0.01 0.00
JB Strategy Balanced-USD/B $ 128.22 - -0.15 0.00 M&G Managed Growth X Inc 73.39xd - -0.39 0.59
Global Eq Income Inc ... C 61.12xd - -0.05 3.26 Global Equity Income Acc 119.40 - -0.70 5.65 Europe High Conviction PA € 11.80 - 0.01 0.00
 FINANCIAL TIMES Monday 14 December 2015 FTfm | 17

FTfm

Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield

M&G Optimal Income A Inc 141.55 - -0.22 2.64 Low Volatility Gb.Eq.Fd.USD $ 100.28 - 0.08 - US Multi-Cap Income 318.94 318.94 1.22 0.63 Seeyond Factor Plus U.K Equity Fund N/A (GBP) £ 0.97 - -0.01 -

M&G Optimal Income A Acc 186.99 - -0.30 2.64 Low Volatility Gb.Eq.Fd.Yen ¥ 9505.00 - -36.00 - MFM - Third Party Funds
Junior Oils 56.98 60.30 -2.64 0.00 Morant Wright Funds (Ireland) PLC (IRL)
M&G Recovery GBP A Inc 111.56 - -0.99 0.79
FCA Recognised
Junior Gold C Acc 18.39 18.39 -0.12 0.00 NatWest (2230)F (UK)
M&G Recovery GBP A Acc 250.51 - -2.22 0.78 Morant Wright Fuji Yield EUR Acc Hedged € 11.68 - 0.07 -
PO Box 23873, Edinburgh EH7 5WJ**
MFS Meridian Funds SICAV (LUX) MFM Artorius Fund 160.41 160.41 -1.23 0.17
M&G Strategic Corp Bond A Inc 72.81xd - -0.06 3.01 Morant Wright Fuji Yield EUR Dist Hedged € 11.21 - 0.04 - Enquiries: 0800 085 5588
Regulated
MFM Bowland 163.92 177.21 2.57 0.00 Authorised Inv Funds
M&G Strategic Corp Bond A Acc 105.09xd - -0.09 3.00 Absolute Return A1 € 19.82 - 0.02 0.00 Morant Wright Fuji Yield GBP Acc Hedged £ 11.63 - 0.04 0.00
Series 1(Minimum initial investment 16375,000)
MFM Hathaway Inc 104.99 109.94 -1.95 1.91
M&G Global Leaders GBP A Inc 189.17 - 0.13 1.34 Asia ex-Japan A1 $ 22.24 - 0.07 0.00 Morant Wright Fuji Yield GBP Dist Hedged £ 11.31 - 0.04 - United Kingdom Equity Index Fund £ 12.04 - -0.06 2.84 Oasis Crescent Management Company Ltd
MFM SGWM Managed A Acc 124.74 124.74 -1.00 0.16 Other International Funds
M&G Global Leaders GBP A Acc 445.54 - 0.31 1.33 Bond A1 $ 10.34 - -0.03 0.00 Morant Wright Fuji Yield USD Acc Hedged $ 11.31 - 0.04 0.00 UK Specialist Equity Inc £ 18.85 - -0.10 0.42
Oasis Crescent Equity Fund R 9.25 - -0.01 0.00
MFM Techinvest Special Situations Acc 141.26 141.26 -0.70 0.01
M&G UK Inflation Lnkd Corp Bnd A Acc 111.38 - -0.16 0.15 China Equity Fd A1 $ 9.29 - -0.01 0.00 Morant Wright Fuji Yield USD Dist Hedged $ 11.34 - 0.04 2.09 Contl Europe Spec Equity £ 15.66 - -0.14 0.00
MFM Techinvest Technology Acc 348.35 348.35 -8.60 0.00
M&G UK Inflation Lnkd Corp Bnd A Inc 109.78 - -0.16 0.15 Continental European Eqty A1 € 17.26 - 0.11 0.00 Morant Wright Fuji Yield YEN Acc ¥ 1165.94 - 4.02 0.00 US Spec Equity Fund £ 13.83 - -0.04 0.00
MFM UK Primary Opportunities A Inc 319.99 319.99 -2.48 1.38
Emer Mkts Debt Lo Curr Fd A1 $ 10.70 - -0.12 0.00 Morant Wright Fuji Yield B YEN Acc ¥ 1028.49 - 3.93 - Japan Specialist Fund £ 9.79 - -0.04 0.00 Oasis Global Mgmt Co (Ireland) Ltd (IRL)
Slater Investments Ltd - Investment Adviser Regulated
Emerging Markets Debt A1 $ 32.82 - -0.04 0.00 Morant Wright Fuji Yield YEN Dist ¥ 1141.75 - 3.93 2.08 Pacific Basin Specialist Equity Fund £ 20.89 - -0.18 0.69
MFM Slater Growth 417.33 442.79 -0.51 0.11 Oasis Global Investment (Ireland) Plc
M & G Securities Ltd (UK)
Emerging Markets Eq.A1 $ 10.03 - -0.04 0.00 Morant Wright Sakura Fund Sterling Acc Hedged £ 14.23 - 0.08 0.00 UK Sovereign Bd Index Fund £ 10.93 - 0.02 2.55 Oasis Crescent Global Short Term Income Fund $ 0.99 - 0.00 0.79
Property & Other UK Unit Trusts MFM Slater Income A Inc 159.75 159.75 -0.27 3.83
Charibond 122.99xd - -0.12 5.26 European Concentrated A1 € 17.20 - 0.14 0.00 Morant Wright Sakura Fund Euro Acc Hedged € 14.18 - 0.07 0.00 UK Specialist Equity Income Fund £ 9.34 - -0.07 3.95 Oasis Global Equity $ 26.93 - -0.09 0.23
MFM Slater Recovery 182.72 193.87 2.60 0.23
(Accum Units) 3641.03xd - -3.73 5.26 European Core Eq A1 € 31.29 - 0.14 0.00 Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1448.74 - 7.74 0.00 Global Spec Inv Grade Bd Fund GBP £ 9.79 - -0.02 3.08 Oasis Crescent Global Investment Fund (Ireland) plc
Oasis Crescent Global Equity Fund $ 27.42 - -0.12 0.00
NAACIF 72.51xd - -0.47 4.83 European Res.A1 € 32.18 - 0.23 0.00 Morant Wright Sakura Fund Dollar Acc Hedged $ 14.14 - 0.08 0.00 Global Emerg Mkts Equity Fund £ 10.58 - -0.10 0.56
Oasis Crescent Variable Balanced Fund £ 10.17 - -0.04 0.59
(Accum Units) 6499.16xd - -42.27 4.70 European Smaller Companies A1 € 51.69 - 0.07 0.00 Marlborough International Management Limited (GSY) Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 14.05 - 0.07 0.00 Series 2 (Investment Management customers only)
Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520 United Kingdom Equity Index Fund £ 12.03 - -0.07 3.35 OasisCresGl Income Class A $ 10.80 - -0.02 2.40
M&G Property Portfolio A Acc 134.76 141.85 0.00 3.42 European Value A1 € 36.23 - 0.17 0.00
FCA Recognised
UK Specialist Equity Inc £ 19.05 - -0.10 1.76 OasisCresGl LowBal D ($) Dist $ 11.52 - -0.08 0.00
Property Portfolio A 123.64 130.14 0.01 3.49 Global Conc.A1 $ 36.16 - -0.03 0.00 Marlborough North American Fund Ltd £ 30.92 31.23 -0.92 0.00
Contl Europe Spec Equity £ 16.33 - -0.15 0.62 OasisCresGl Med Eq Bal A ($) Dist $ 11.74 - -0.07 0.32
Property Portfolio X 123.64 123.64 0.01 3.49 Global Credit Fund $ 10.29 - -0.04 0.00 Marlborough Tiger Fund Ltd F £ 25.14 26.79 -0.95 0.00
US Spec Equity Fund £ 14.43 - -0.04 0.16 Oasis Crescent Gbl Property Eqty $ 9.29 - -0.07 2.07
Global Energy Fund A1 $ 12.01 - 0.05 0.00

Global Equity A1 $ 44.72 - -0.01 0.00 Japan Specialist Fund £ 10.37 - -0.05 0.51
M & G (Guernsey) Ltd (GSY) Marwyn Asset Management Limited (CYM) Pacific Basin Specialist Equity Fund £ 20.68 - -0.18 1.38
Global Equity A1 € 25.93 - 0.04 0.00
Regulated Regulated
Global High Yield Fund $ 24.00 - -0.03 0.00 Morgan Stanley Investment Funds (LUX) UK Sovereign Bd Index Fund £ 11.12 - 0.03 2.55
The M&G Offshore Fund Range Marwyn Value Investors £ 458.79 - -5.08 0.00
Corporate Bond 1311.38 1351.93 -0.99 3.17 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61 UK Specialist Equity Income Fund £ 10.12 - -0.07 3.88
Global High Yield Fund € 15.99 - 0.01 0.00
www.morganstanleyinvestmentfunds.com
Global Basics 2206.70 2274.94 -16.08 0.31 Global Spec Inv Grade Bd Fund GBP £ 9.96 - -0.01 3.08
Global Multi-Asset A1 $ 14.89 - -0.01 0.00 FCA Recognised
Global Leaders 3286.03 3422.95 2.24 1.11
Global Res.A1 $ 25.41 - 0.04 0.00
McInroy & Wood Portfolios Limited (UK) US Advantage A F $ 58.11 - -0.65 0.00 Global Emerg Mkts Equity Fund £ 10.16 - -0.09 0.79
Easter Alderston, Haddington, EH41 3SF 01620 825867
Global High Yield Bond 941.16 970.27 -3.33 4.58 Asian Equity A F $ 39.43 - -0.89 0.00 The initial charge you will pay will depend on the amount you invest Odey Asset Management LLP (UK)
Global Total Return A1 € 17.67 - 0.03 0.00 Authorised Inv Funds
**Address and Telephone number for series 1 only 40 Dukes Place, London, EC3A 7NH
Global Macro Bond Fund 10897.28 11234.31 -4.49 1.30 Balanced Fund Personal Class Units 3842.90xd - -11.70 1.93 Asian Property A F $ 17.09 - -0.28 0.00
Inflation-Adjusted Bond A1 $ 13.77 - -0.06 0.00 Order Desk and Enquiries: 0345 300 2106
North American Dividend Fund 154.60 161.04 0.54 2.16 Income Fund Personal Class Units 2338.40 - -12.50 2.94 Asian Property AX F £ 10.55 - -0.09 0.54 Authorised Corporate Director - Capita Financial Managers
Japan Equity A1 $ 10.25 - 0.06 0.00
Authorised Inv Funds
Optimal Income Fund 140.27 144.60 -0.21 2.63 Emerging Markets Fund Personal Class Units 1525.90 - -22.50 2.56 Diversified Alpha Plus A F € 29.52 - -0.04 0.00
Latin American Equity Fd A1 $ 11.27 - -0.22 0.00 CF Odey Continental European GBP R Acc 698.22 - -5.93 0.19
Recovery Fund Limited 'A' Participating Shares 9659.81 10062.30 -84.78 0.44 Smaller Companies Fund Personal Class Units 3603.70 - -14.00 1.72 Emerg Europ, Mid-East & Africa Eq A F € 63.90 - -1.40 0.00
Limited Maturity A1 $ 14.00 - 0.00 0.00 CF Odey Opus GBP R Inc 3641.57 - -26.13 0.00
Recovery Fund Limited 'I' Participating Shares 9682.20 9780.00 -85.47 1.27 Emerging Markets Debt A F $ 75.05 - -0.25 0.00
Prudent Wealth Fd A1 $ 14.80 - 0.02 0.00 CF Odey Absolute Return GBP R 322.87 - 2.24 0.00
Strategic Corporate Bond Fund 132.20 137.71 -0.11 3.02 Emerging Markets Domestic Debt AX F £ 10.11 - -0.09 5.50
Research Bond A1 $ 16.49 - -0.03 0.00 CF Odey Portfolio Fund GBP R Inc 144.60 - -0.56 0.07
UK Select 1446.23 1506.49 -13.60 1.16
Meridian Fund Managers Ltd Emerging Markets Equity A F $ 31.58 - -0.83 0.00
UK Equity A1 £ 7.84 - 0.02 0.00 Other International Funds New Capital Fund Management Ltd (IRL)
Global Gold & Resources Fund $ 179.68 - 10.63 - Euro Bond A F € 15.71 - -0.02 0.00 Leconfield House, Curzon Street, London, W1J 5JB
US Conc.Growth A1 $ 15.39 - 0.00 0.00
FCA Recognised
US Government Bond A1 $ 17.03 - -0.02 0.00 Global Energy & Resources Fund $ 33.88 - 1.76 - Euro Corporate Bond AX F £ 21.50 - -0.07 1.52 Odey Asset Management LLP (CYM)
New Capital UCITS Funds
Regulated
Euro Strategic Bond A F € 43.42 - -0.02 0.00 Asia Pac Bd USD Inst Inc $ 92.63 - -0.01 3.25
Value A1 $ 21.78 - 0.04 0.00 OEI Mac Inc GBP A £ 344.31 - -17.86 0.00
European Currencies High Yield Bd A F € 21.58 - -0.03 0.00 Asia Pac Bd USD Ord Inc $ 94.39 - -0.02 2.52
OEI Mac Inc GBP B £ 189.70 - -8.02 0.00
European Equity Alpha A F € 42.53 - -0.17 0.00 Asia Pac Eq EUR Ord Inc € 84.36 - -0.14 3.37
OEI MAC Inc USD $ 1838.08 - -95.34 0.00
MMIP Investment Management Limited (GSY) European Property A F € 34.86 - -0.66 0.00 Asia Pac Eq GBP Ord Inc £ 87.50 - -0.14 3.81
Odey European Inc EUR € 807.22 - -35.55 0.00
Regulated
Majedie Asset Management LTD (UK) Eurozone Equity Alpha A F € 11.48 - -0.07 0.00 Asia Pac Eq USD Ord Inc $ 88.00 - -0.14 3.19
Multi-Manager Investment Programmes PCC Limited Odey European Inc GBP A £ 310.09 - -13.62 0.00
www.majedie.com
European Equity Fd Cl A Initial Ser € 2579.25 2589.39 212.70 0.00 Global Bond A F $ 38.39 - 0.02 0.00 Asia Pac Eq USD Inst Acc $ 93.42 - -0.15 0.00
Authorised Inv Funds Odey European Inc GBP B £ 175.96 - -7.73 0.00
Global Equity X Acc GBP £ 1.11 - -0.01 0.59 Japanese Equity Fd Cl A Initial Ser ¥ 361904.00 363123.00 28252.00 0.00 Emerging Markets Managed Accounts PLC (IRL) Global Brands A F $ 97.23 - -1.24 0.00 Asia Pac Eq USD Inst Inc $ 98.37 - -0.16 3.91
Odey European Inc USD $ 371.78 - -16.41 0.00
info@emmaplc.com,+44(0)20 8123 8369 www.emmaplc.com
Global Focus X Acc GBP £ 1.13 - -0.01 0.38 MMIP - US EQUITY CLASS A 01 June 07 Series $ 1135.99 1139.27 -48.31 0.00 Global Convertible Bond A F $ 42.03 - -0.15 0.00 Dyn Europ Eq EUR Ord Inc € 176.69 - -0.07 1.29
Regulated Giano Capital EUR Inc € 4456.59 - 3.33 0.00
UK Equity X Acc 134.54 - -1.85 2.81 Pacific Basin Fd Cl A Initial Ser $ 2142.33 2154.57 139.28 0.00 Milltrust ASEAN A $ 88.10 - -0.05 0.00 Global Property A F $ 27.01 - -0.42 0.00 Dyn Europ Eq GBP Ord Inc £ 187.70 - -0.06 1.64
UK Focus X Acc 148.55 - -2.88 1.93 UK Equity Fd Cl A Series 01 £ 2356.72 2380.35 78.79 0.00 Milltrust India A $ 122.10 - -2.11 0.00 Indian Equity A F $ 32.86 - -0.62 0.00 Dyn Europ Eq USD Ord Inc $ 176.27 - -0.05 1.21
UK Income X Inc 146.87 - -0.64 4.96 Diversified Absolute Rtn Fd USD Cl AF2 $ 1591.09 - 14.69 0.00 Milltrust Latin America A $ 68.02 - -0.88 0.00 Latin American Equity A F $ 35.94 - -1.09 0.00 China Equity EUR Ord Acc € 131.00 - -1.94 0.00 Odey Asset Management LLP (IRL)
FCA Recognised
UK Smaller Companies A Acc 255.62 - 0.38 1.33 Diversified Absolute Return Stlg Cell AF2 £ 1611.67 - 15.03 0.00 Milltrust Keywise China Fund $ 119.06 - 0.79 0.00 Short Maturity Euro Bond A F € 20.37 - -0.02 0.00 China Equity GBP Ord Acc £ 136.99 - -2.07 0.00
Odey Pan European EUR R € 339.38 - -3.81 0.00
US Dollar Liquidity A F $ 13.03 - 0.00 0.00 China Equity USD Ord Acc $ 133.29 - -2.03 0.00 Odey Absolute Return Focus Fund $ 100.00 - - -
US Growth A F $ 68.36 - -0.76 0.00 China Equity USD Inst Acc $ 137.04 - -2.08 0.00 Odey Allegra European EUR O € 259.53 - -0.78 0.00
Majedie Asset Management LTD (IRL) Manek Investment Mgmt Ltd (1000)F (UK) Ministry of Justice Common Investment Funds (UK) US Growth AH F € 47.91 - -0.50 0.00 Global Val.Cr.Fd GBP Ord Inc £ 110.99 - -0.11 3.61
FCA Recognised P.O.Box 100, Swindon SN1 1WR 0844 800 9401 Property & Other UK Unit Trusts Odey Allegra International EUR O € 175.86 - -1.39 0.00
US Equity Z Acc GBP £ 1.25 - 0.00 0.00 Authorised Inv Funds The Equity Idx Tracker Fd Inc 1280.00 1280.00 -16.00 2.86 US Growth AX F £ 45.52 - -0.59 0.00 Global Val.Cr.Fd USD Inst Acc $ 122.61 - -0.11 0.00
Asset Management
Odey Allegra Developed Markets USD I $ 131.19 - -0.50 0.00
Growth Fd Acc 51.89 54.94 0.34 0.00
Tortoise Z Acc GBP £ 0.90 - 0.00 0.00 US Property A F $ 66.36 - -0.89 0.00
Asset Management
Distribution Units Global Val.Cr.Fd GBP Ord Acc £ 176.76 - -0.16 0.00 Odey European Focus Fund € 17.41 - -0.05 0.49

Asset Management Asset Management Global Val.Cr.Fd USD Ord Acc

Global Val.Cr.Fd EUR Ord Acc

$ 165.89

€ 154.47
-

-
-0.15 0.00

-0.14 0.00
Odey Atlas Fund GBP I S £ 1.14 - -0.01 0.00

LNG Capital (CYM) Odey Giano European Fund EUR R € 120.83 - -0.70 0.00
Morgens Waterfall Vintiadis.co Inc
Kingsbury House, 15-17 King St, London SW1Y 6QU Swiss Select Equity Inst Acc SFr 112.46 - -1.72 0.00
Other International Funds Odey Naver Fund EUR I € 126.20 - -0.13 0.00
www.lngcapital.com, Tel: 0207 839 3456
Phaeton Intl (BVI) Ltd (Est) $ 410.91 - -1.49 0.00 Swiss Select Equity Ord Acc SFr 111.20 - -1.70 0.00
Regulated Odey Odyssey USD I $ 141.69 - -0.97 0.00
LNG Europa Credit Fund EUR (Est) € 1196.70 - 65.31 - US Growth USD Ord Acc $ 212.27 - 1.02 0.00 Odey Orion Fund EUR I € 118.47 - -0.09 0.00
LNG Europa Credit Fund GBP (Est) £ 1196.70 - 56.94 - US Growth EUR Ord Acc € 202.92 - 0.93 0.00 Odey Swan Fund EUR I € 94.85 - -0.76 0.00
MFS Investment Funds (LUX) Mirabaud Asset Management (LUX)
LNG Europa Credit Fund USD $ 1183.45 - -15.60 - US Growth GBP Ord Acc £ 213.50 - 1.02 0.00
www.mirabaud.com, marketing@mirabaud.com Odey European Absolute Return GBP S £ 98.64 - -0.11 0.00
FCA Recognised
Regulated US Growth USD Inst Acc $ 196.05 - 0.95 0.00
Blend.Research Gb.Eq.Fd. € 102.96 - 0.59 -
Mir. Conv. Bds Eur A EUR € 137.44 - -0.18 0.00
Blend.Research Gb.Eq.Fd. £ 99.77 - 0.42 - Wealthy Nat Bd EUR Inst Inc € 108.62 - -0.16 3.77
Marlborough Fd Managers Ltd (1200)F (UK) Mir. Conv. Bds Glb A USD $ 115.39 - 0.04 0.00
Blend.Research U.S.Core Eq.Fd. ¥ 10353.00 - -30.00 - Wealthy Nat Bd GBP Inst Inc £ 112.85 - -0.17 3.61 Odey Wealth Management (CI) Ltd (IRL)
Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500
Mir. - Eq Asia ex Jap A $ 169.01 - -2.20 0.00 www.odey.com/prices
www.marlboroughfunds.com Natixis International Funds (Lux) I SICAV (LUX) Wealthy Nat Bd EUR Ord Inc € 107.83 - -0.17 3.53
Blend.Research Gb.Eq.Fd. $ 99.41 - 0.34 - FCA Recognised
Authorised Inv Funds Mir. - Eq Glb Emrg Mkt A USD $ 85.09 - -1.51 0.00 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
FCA Recognised Wealthy Nat Bd GBP Ord Inc £ 113.40 - -0.17 3.34 Odey Opportunity EUR I € 222.22 - -0.11 0.00
Em.Mk.Eq.Fund Euro € 108.77 - -0.19 0.00 Balanced 154.04 162.88 -1.11 0.05
Mir. - Eq Global Focus A USD $ 102.43 - 0.00 0.00 Harris Global Equity R/A (USD) $ 259.05 259.05 -0.26 0.00
Em.Mk.Eq.Fund Sterling £ 92.25 - -0.30 0.00 Wealthy Nat Bd USD Ord Inc $ 110.37 - -0.17 3.32
Bond Income 49.48 52.36 -0.17 4.94
Mir. -Eq Spain A € 25.68 - -0.15 0.00 Harris US Equity Fund R/A (USD) $ 207.95 207.95 0.43 0.00
Em.Mk.Eq.Fd.US Dollar $ 90.85 - -0.37 0.00 New Capital Alternative Strategies
Cash 50.05 50.05 0.01 0.32
Mir. - Eq Swiss Sm/Mid A SFr 327.37 - -2.09 0.00 Harris Concentrated US Equity R/A (USD) $ 159.06 159.06 0.36 0.00 All Weather Fd USD Cls $ 117.78 - 0.27 0.00 Omnia Fund Ltd
Gb.Conc.Eq.Fd.Euro € 280.06 - 0.75 0.00 Cautious Inc 81.69 85.98 -0.47 1.33 Other International Funds
Mir. - Glb High Yield Bds A $ 107.48 - -0.14 - Loomis Sayles Strategic Alpha R/A (USD) $ 109.85 109.85 -0.01 - All Weather Fd EUR Cls € 105.81 - 0.21 0.00
Gb.Conc.Eq.Fd.Sterl.UK T £ 168.99 - 0.22 0.00 Estimated NAV $ 855.62 - 16.81 0.00
Defensive A Inc 117.21 117.21 -0.01 0.27
Mir. - Glb Eq High Income A USD $ 98.59 - -0.30 0.00 All Weather Fd GBP Cls £ 114.00 - 0.29 0.00
Gb.Conc.Eq.Fd.Sterling £ 255.78 - 0.31 0.00 Emerging Markets 212.16 212.16 -3.90 1.79
Mir. - Glb Inv Grade Bds A € 100.67 - 0.00 - Tactical Opps USD Cls $ 146.06 - 1.75 0.00
Gb.Conc.Eq.Fd.US $ 193.94 - 0.07 0.00 ETF Global Growth A 148.74 148.74 0.12 0.00
Mir. - Glb Strat. Bd A USD $ 104.16 - -0.05 0.00 Natixis International Funds (Dublin) I plc (IRL) Tactical Opps EUR Cls € 122.26 - 1.38 0.00
Gb.Eq.Hdg Fd.Euro IRE T € 181.90 - 0.41 0.00 ETF Commodity A 65.07 65.07 -0.34 0.00 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000
Mir. Opp.- Activ.Strategies I $ 98.86 - -0.22 0.00 Regulated Tactical Opps GBP Cls £ 137.50 - 1.64 0.00
Gb.Eq.Euro Hdg Fd. € 257.76 - 0.57 0.00 European Multi-Cap 285.32 285.32 -0.88 0.29
Mir. Opp. -Emerg. Mkt HO $ 102.74 - 0.00 0.00 Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.34 12.34 -0.01 1.21
Gb.Eq.Fund Euro € 282.60 - 0.97 0.00 Extra Income 77.91 82.44 -0.35 4.45
MirAlt Sicav-Diversified A Cap. $ 107.83 - -0.98 0.00 Loomis Sayles High Income R/D (USD) $ 8.23 8.23 -0.01 14.98
Gb.Eq. Fd Euro IRE T € 178.81 - 0.62 0.00 Far East Growth A Inc 154.02 154.02 -1.81 2.45
MirAlt Sicav-Europe A dis € 73.66 - 0.77 0.00 Loomis Sayles Multisector Income R/D (GBP) $ 12.06 12.06 -0.02 5.77
Gb.Eq.Fd.Sterling UK T £ 206.18 - 0.41 0.00
Optima Fund Management
Global 176.30 185.55 -2.37 0.00
MirAlt Sicav - North America A dis $ 155.78 - 0.12 0.00 Other International Funds
Gb.Eq.Fd.US Dollar $ 308.95 - 0.34 0.00 Global Bond Inc 135.97 143.88 -0.02 3.20 Cuttyhunk Fund II Limited $ 1489.07 - -4.76 0.00
Gb.Eq.Fund Sterling £ 203.81 - 0.40 0.00 High Yield Fixed Interest 73.12 77.58 -0.11 5.67 Natixis International Funds (UK) JENOP Global Healthcare Fund Ltd $ 14.98 - 0.33 0.00
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
Gb.Val.Ex-Jap.Fd.USD $ 117.02 - 0.23 0.00 Multi Cap Income A Inc 156.12 156.12 -1.26 4.51 MW Japan Fund Plc (IRL)
Authorised Funds
OPTIKA Fund Limited - Cl A $ 101.47 - -0.10 -
FCA Recognised
Northwest Investment Management (HK) Ltd
Gb.Val.Ex-Japan Fd.Yen ¥ 13985.00 - -36.00 0.00 Nano-Cap Growth A Acc 103.8408 113.9800 0.0225 0.00 H2O MultiReturns Fund N/A (GBP) £ 1.39 - 0.00 1.40 11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373 Optima Fd NAV $ 90.17 - 0.01 0.00
MW Japan Fund PLC A $ 25.45 - 0.13 -
Gb.Val.Fd. Euro € 131.98 - 0.75 0.00 Harris Associates Global Concentrated Equity Fund N/A (GBP) £ 1.02 - -0.01 0.00 Other International Funds Optima Discretionary Macro Fund Limited $ 87.21 - -1.06 0.00
Special Situations A Acc 1187.53 1256.65 -4.58 0.37
MW Japan Fund PLC B $ 25.66 - 0.13 - Northwest $ class $ 2357.94 - -24.48 0.00
Gb.Val.Fd.Sterling £ 115.93 - 0.48 0.00 UK Multi-Cap Growth A Inc 239.06 252.97 -1.51 0.66 Loomis Sayles Strategic Income N/D (GBP) £ 0.93 - -0.01 4.06 The Dorset Energy Fd Ltd NAV $ 27.90 - 0.17 0.00
MW Japan Fund PLC C $ 98.83 - 0.48 - Northwest Warrant $ class $ 1969.35 - -444.40 0.00
Gb.Val.Fd.USD $ 104.04 - 0.35 0.00 UK Micro Cap Growth A 476.10 503.81 -0.55 0.00 Loomis Sayles Strategic Income H-N/D (GBP) £ 0.90 - 0.00 4.14 Platinum Fd Ltd $ 86.27 - 0.07 0.00
Low Volatility Gb.Eq.Fd.Euro € 103.86 - 0.32 - Loomis Sayles US Equity Leaders N/A (GBP) £ 1.48 - 0.00 0.25 Platinum Fd Ltd EUR € 16.75 - 0.01 0.00
Low Volatility Gb.Eq.Fd.Sterl £ 100.65 - 0.16 - Seeyond Factor Plus Europe Ex U.K Equity Fund N/A (GBP) £ 0.96 - -0.02 - Platinum Japan Fd Ltd $ 53.74 - -0.25 0.00
18 | FTfm FINANCIAL TIMES Monday 14 December 2015

FTfm

Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield

Optima Partners Global Fd $ 14.24 - 0.00 0.00 Pictet-Russia Index I USD $ 47.17 - 0.23 0.00 Santander Atlas Port 6 Acc Inst 157.50 - -1.10 -

Optima Partners Focus Fund A $ 15.88 - 0.03 0.00 Pictet-Russian Equities-I USD F $ 41.46 - 0.05 0.00 Santander Atlas Port 7 Acc Ret 198.10 - -1.40 -
Rathbone Unit Trust Mgmt (1200)F (UK)
Pictet-Security-I USD F $ 201.07 - -0.43 0.00 Santander Atlas Port 7 Acc Inst 157.20 - -1.10 -
PO Box 9948, Chelmsford, CM99 2AG
Pictet-Select-Callisto I EUR € 106.43 - -0.21 0.00 Order Desk: 0845 300 2101, Enquiries: 0207 399 0399 Authorised Inv Funds
Oryx International Growth Fund Ltd Authorised Inv Funds Max 70% Shs Acc Ret 165.50 - -0.70 -
Pictet-Small Cap Europe-I EUR F € 1132.05 - -6.99 0.00
Other International Funds Blue Chip Income Inc 148.71 153.56 -1.51 4.19
Max 70% Shs Inc Ret 139.40 - -0.60 -
NAV (Fully Diluted) £ 6.57 - -0.06 0.00 Pictet-ST.MoneyMkt-I € 140.47 - 0.00 0.00
Blue Chip Income Acc 221.70 228.70 -2.25 4.06
Investments Inc Acc Ret 155.20 - -0.20 -
Pictet-ST.MoneyMkt JPY I USD ¥ 101521.33 - -3.72 0.00 Polar Capital Funds Plc (IRL) Ruffer LLP (1000)F (UK)
Ethical Bond Inc 90.39 92.34 -0.03 4.69
Regulated 40 Dukes Place, London EC3A 7NH Investments Inc Inc Ret 102.60 - 0.00 -
Pictet-ST.MoneyMkt-ICHF SFr 124.22 - -0.04 0.00
Asian Financials I USD $ 270.72 270.72 -2.59 0.00 Ethical Bond Acc 172.87 176.24 -0.08 5.16 Order Desk and Enquiries: 0345 601 9610
OTP Asset Management Romania SAI SA ((ROM)) Equity Inc Inc Inst 241.80 - -2.40 -
Pictet-ST.MoneyMkt-IUSD $ 135.22 - 0.00 0.00 Authorised Inv Funds
www.otpfonduri.ro Biotechnology I USD $ 17.80 17.80 0.11 0.00 Global Opportunities Acc 139.88 144.34 -0.02 0.11
Authorised Corporate Director - Capita Financial Managers Equity Inc Inc Ret 207.30 - -2.10 -
Other International Funds Pictet-Timber-I USD F $ 148.62 - 0.58 0.00
European Income Acc EUR € 11.46 11.46 -0.03 0.00 Income Inc 831.27 860.40 -6.57 4.09 CF Ruffer Investment Funds
OTP Comodisro RON 16.85 - 0.00 - Equity Inc Acc Inst 146.00 - -1.50 -
Pictet Total Ret-Agora I EUR € 115.57 - -0.13 0.00 CF Ruffer Gold Fund C Acc 80.13 - 0.46 0.00
European Ex UK Inc EUR Acc € 9.81 9.81 0.00 - Income Acc 1293.52 1337.12 -10.22 3.97
OTP Obligatiuni RON 14.25 - -0.01 - N&P UK Gwth Inc Ret 163.50 - -1.50 -
Pictet Total Ret-Corto Europe I EUR € 136.85 - -0.04 0.00 CF Ruffer Gold Fund O Acc 79.31 - 0.45 0.00
Financial Opps I USD $ 12.25 - -0.04 2.13 Multi Asset Enhanced Growth Acc 120.51 - -0.63 0.00
OTP Avantisro RON 8.48 - -0.02 - Stckmkt 100 Track Gwth Acc Inst 87.20 - -1.16 -
Pictet Total Ret-Divers Alpha I EUR € 104.99 - -0.06 0.00 Equity & General C Acc 375.32 - -7.05 0.06
GEM Growth I USD $ 8.15 - -0.07 0.00 Multi Asset Strategic Growth inc 147.28 - -0.51 1.13
OTP Euro Bond € 12.40 - 0.00 - Stckmkt 100 Track Gwth Acc Ret 162.00 - -2.10 -
Pictet Total Ret-Kosmos I EUR € 109.52 - 0.31 0.00 Equity & General C Inc 346.16 - -6.51 0.06
GEM Income I USD $ 9.06 - -0.09 0.00 Multi Asset Strategic Growth acc 155.87 - -0.53 1.12
OTP Dollar Bond $ 10.58 - 0.00 - UK Growth Acc Inst 286.10 - -2.60 -
Pictet Total Ret-Mandarin I USD $ 114.37 - -0.37 0.00 Equity & General O Inc 344.76 - -6.50 0.00
Global Alpha I USD $ 12.73 12.73 0.00 0.00 Multi Asset Total Return inc 125.37 - -0.24 1.83
OTP Premium Return RON 1072.46 - -0.47 - UK Growth Acc Ret 331.50 - -3.00 -
Pictet-US Equity Selection-I USD $ 189.93 - 0.26 0.00 Equity & General O Acc 371.57 - -7.01 0.00
Global Convertible I USD $ 11.36 11.36 -0.01 0.00 Multi Asset Total Return acc 138.20 - -0.27 1.79
UK Growth Inc Ret 218.40 - -2.00 -
Pictet-US High Yield-I USD F $ 143.92 - -0.16 0.00 European C Acc 504.48 - -0.30 0.26
Global Insurance I GBP £ 4.09 - -0.01 0.00 Recovery Inc 417.75 433.70 -3.67 2.62
Managed OEIC
Pictet-USA Index-I USD F $ 181.29 - 0.42 0.00 European O Acc 499.48 - -0.34 0.00
Global Technology I USD $ 23.82 - 0.09 0.00 Recovery Acc 504.81 523.53 -4.42 2.57 Glob Em Shs Port Acc Ret 147.20 - -2.20 -
Pictet-USD Government Bonds-I F $ 634.15 - -1.07 0.00 Japanese Fund C Acc 186.30 - -4.36 0.00
Healthcare Blue Chip Fund I USD Acc $ 10.52 10.52 0.02 0.00 Strategic Bond I-Class Acc 124.62 125.30 -0.04 3.93 Max 70% Shs Port Acc Ret 253.40 - -1.20 -
Pictet-USD Short Mid-Term Bonds-I F $ 129.52 - -0.13 0.00 Japanese Fund O Acc 184.20 - -4.32 0.00
Healthcare Opps I USD $ 38.26 - 0.10 0.00 Strategic Bond I-Class Inc 109.31 109.98 -0.03 3.88 Max 70% Shs Port Acc X 182.00 - -0.90 -
Pictet-USD Sov.ST.Mon.Mkt-I $ 102.62 - 0.00 0.00 Pacific C Acc 301.04 - -5.77 0.55
Income Opportunities B2 I GBP Acc £ 1.71 1.71 0.00 0.00 Max 70% Shs Port Acc S 147.20 - -0.70 -
Pictet-Water-I EUR F € 280.43 - -0.04 0.00 Pacific O Acc 297.74 - -5.74 0.25
Japan Alpha I JPY ¥ 214.30 214.30 0.67 0.00 Investment Port Acc Ret 232.20 - -0.20 -
Permal Investment Mgmt Svcs Ltd
Total Return C Acc 391.05 - -6.12 1.37
www.permal.com Japan I JPY ¥ 2134.03 - 11.01 0.00 Investment Port Acc X 164.60 - -0.10 -
Other International Funds Total Return C Inc 270.95 - -4.24 1.38
North American I USD $ 17.73 17.73 0.06 0.00 Max 50% Shs Port Acc Ret 243.10 - -0.80 -
Offshore Fund Class A US $ Shares Pimco Fds: Global Investors Series Plc (IRL)
Total Return O Inc 268.11 - -4.21 1.38
Investment Holdings N.V. $ 5487.68 - 49.80 0.00 PIMCO Europe Ltd,11 Baker Street,London W1U 3AH UK Absolute Equity I GBP £ 12.89 12.89 0.03 0.00 Max 50% Shs Port Inc Ret 216.50 - -0.70 -
http://gisnav.pimco-funds.com/ Total Return O Acc 387.12 - -6.09 1.36
Macro Holdings Ltd $ 4192.02 - 66.31 0.00 Max 50% Shs Port Acc X 175.90 - -0.60 -
Dealing: +44 20 3640 1000
Fixed Income Holdings N.V. $ 364.13 - -1.93 - PIMCO Funds: +44 (0)20 3640 1407 Robeco Asset Management (LUX) Max 50% Shs Port Acc S 147.30 - -0.50 -
FCA Recognised Polar Capital LLP (CYM) Coolsingel 120, 3011 AG Rotterdam, The Netherlands.
Permal Absolute Return Fund $ 163.59 - 0.48 0.00 Max 100% Shs Port Acc Ret 276.90 - -2.40 -
Capital Securities Inst Acc $ 15.03 - -0.02 0.00 Regulated www.robeco.com/contact
ALVA Convertible A USD $ 128.85 - 0.86 0.00 FCA Recognised Max 100% Shs Port Acc X 198.80 - -1.70 -
Commodity Real Return Fund Inst Acc $ 5.76 - -0.01 0.00
Asia-Pacific Equities (EUR) € 130.49 - 0.37 0.00
European Conviction A EUR € 140.86 - 1.11 0.00 Max 100% Shs Port Acc S 145.00 - -1.20 -
Credit Absolute Return Fund Inst Acc $ 11.00 - -0.01 0.00
Chinese Equities (EUR) € 72.66 - -1.46 0.00
European Forager A EUR € 174.98 - 0.29 0.00 Enhanced Inc Inc Ins 206.50 - -2.00 -
Diversified Income - Inst Acc $ 19.17 - -0.05 0.00
Em Stars Equities (EUR) € 165.44 - -1.51 0.00
Enhanced Inc Inc Ret 194.80 - -1.90 -
Diversified Income Durat Hdg Fund Inst Acc $ 11.21 - -0.02 0.00
Emerging Markets Equities (EUR) € 139.00 - -1.36 0.00 S W Mitchell Capital LLP (CYM)
Enhanced Inc Inc X 165.70 - -1.60 -
Emerging Asia Bond Fund Inst Acc $ 9.55 - -0.03 0.00 Regulated
Polunin Capital Partners Ltd Flex-o-Rente (EUR) € 109.43 - -0.04 0.00
S W Mitchell European Fund Class A EUR € 334.37 - 23.63 - Enhanced Inc Acc Inst 154.70 - -1.50 -
Emerging Local Bond - Inst Acc $ 10.59 - -0.14 0.00 Other International Funds
Glob.Consumer Trends Equities (EUR) € 157.17 - 0.41 0.00
Pictet Asset Management (Europe) SA (LUX) Emerging Markets Active $ 40.08 - -0.85 - S W Mitchell Small Cap European Fund Class A EUR € 233.97 - 4.05 - Managed Investments OEIC
Emerging Markets Bond - Inst Acc $ 37.65 - -0.20 0.00
15, Avenue J.F. Kennedy L-1855 Luxembourg High Yield Bonds (EUR) € 123.51 - 0.34 0.00 Max 30% Shs Port Acc Ret 154.40 - -0.40 -
Luxcellence Em Mkts Tech $ 942.92 - 18.53 0.00 The Charlemagne Fund EUR € 323.41 - -9.82 -
Tel: 0041 58 323 3000 Emerging Markets Corp.Bd Fund Inst Acc F $ 12.58 - -0.03 0.00
Lux -O- Rente (EUR) € 140.57 - -0.01 0.00 Max 30% Shs Port Acc X 154.20 - -0.30 -
FCA Recognised Polunin Developing Countries $ 698.22 704.15 -5.11 0.00
Emerging Markets Short-Term Local Currency Fund $ 11.66 - -0.03 0.00
Pictet-Absl Rtn Fix Inc-HI EUR € 106.86 - -0.05 0.00 New World Financials (EUR) € 52.44 - -0.12 0.00 Max 30% Shs Port Acc S 148.10 - -0.30 -
Polunin Discovery - Frontier Markets $ 1351.61 - -7.40 0.00
Euro Bond - Inst Acc € 22.79 - 0.03 0.00
Pictet-Absl Rtn Glo Div-I EUR F € 123.82 - 0.08 0.00
Polunin Small Cap $ 1376.37 1393.57 12.39 0.00
US Premium Equities (EUR) € 181.54 - 0.64 0.00 S W Mitchell Capital LLP (IRL) Max 30% Shs Inc Port Inc Ret 152.70 - -0.40 -
Euro Credit - Inst Acc € 14.76 - 0.01 0.00 Regulated
Pictet-Agriculture-I EUR F € 184.65 - 0.53 0.00 US Premium Equities (USD) $ 202.92 - 0.73 0.00 Max 30% Shs Inc Port Inc X 152.80 - -0.40 -
SWMC European Fund B EUR € 15249.65 - -76.62 0.00
Euro Income Bond - Inst Acc F € 12.98 - 0.01 0.00
Pictet-Asian Equities Ex Japan-I USD F $ 198.26 - -2.04 0.00 Max 30% Shs Inc Port Inc S 146.70 - -0.40 -
SWMC UK Fund B £ 11867.45 - 54.88 0.00
Euro Long Average Duration - Inst Acc € 21.66 - 0.09 0.00 Private Fund Mgrs (Guernsey) Ltd (GSY)
Pictet-Asian Local Currency Debt-I USD F $ 150.47 - -0.43 0.00 Max 60% Shs Port Acc Ret 265.90 - -1.30 -
SWMC Small Cap European Fund B EUR € 13433.53 - -37.98 0.00
Euro Low Duration Fund Inst Acc € 11.28 - 0.00 0.00 Regulated Royal Bank of Scotland (2230)F (UK)
Pictet-Biotech-I USD F $ 827.55 - 8.73 0.00 Max 60% Shs Port Inc Ret 210.40 - -1.00 -
Monument Growth 08/12/2015 £ 494.04 499.59 -1.81 1.01 PO Box 23873, Edinburgh EH7 5WJ 0800 917 7072 SWMC Emerging European Fund B EUR € 9044.69 - -52.54 0.00
Euro Real Return - Inst Acc € 13.55 - 0.03 0.00
Pictet-Brazil Index I USD $ 37.82 - -0.79 0.00 Authorised Inv Funds Max 60% Shs Port Inc X 162.90 - -0.80 -
Euro Short-Term Inst Acc € 12.27 - 0.00 0.00 Series 5 (Minumum Initial Investment £75,000)
Pictet-CHF Bonds I CHF SFr 506.33 - -0.69 0.00 Max 60% Shs Port Inc S 144.30 - -0.70 -
United Kingdom Equity Index Fund £ 15.06 - -0.09 2.84
Euro Ultra Long Duration - Inst Acc € 28.39 - 0.11 0.00 Prusik Investment Management LLP (IRL)
Pictet-China Index I USD $ 104.16 - -0.76 0.00 Managed Investments OEIC 2
Enquiries - 0207 493 1331 UK Specialist Equity Inc £ 18.86 - -0.10 0.42
Global Advantage - Inst Acc $ 12.00 - -0.04 0.00 Investments Inc Port Inc Ret 163.50 - -0.20 -
Pictet-Clean Energy-I USD F $ 77.39 - -0.30 0.00
Regulated Contl Europe Specialist Fund £ 23.13 - -0.20 0.00
Global Advantage Real Return Fund Inst Acc $ 8.45 - -0.05 0.00 Investments Inc Port Inc X 148.20 - -0.10 -
Pictet-Digital Communication-I USD F $ 261.66 - 0.21 0.00 Prusik Asian Equity Income B Dist $ 154.50 - -1.95 3.83
Japan Specialist Fund £ 14.82 - -0.06 0.00
Global Bond - Inst Acc $ 27.85 - -0.03 0.00 £ Gov Bond Inc Inst (gross) 178.10 - -0.10 -
Pictet-Eastern Europe-I EUR F € 259.17 - -1.89 0.00 Prusik Asia A $ 190.59 - -1.73 0.00
US Spec Equity Fund £ 18.69 - -0.05 0.00
Global Bond Ex-US - Inst Acc $ 19.55 - 0.02 0.00 £ Gov Bond Inc Inst 146.20 - -0.10 -
Pictet-Em Lcl Ccy Dbt-I USD F $ 151.65 - -2.51 0.00 Prusik Asian Smaller Cos A $ 136.07 - -0.38 0.00
Pacific Basin Specialist Equity Fund £ 36.85 - -0.32 0.71 RobecoSAM (LUX)
Global High Yield Bond - Inst Acc $ 19.71 - -0.02 0.00 Tel. +41 44 653 10 10 http://www.robecosam.com/ £ Gov Bond Acc Inst 147.60 - -0.20 -
Pictet-Emerging Markets-I USD F $ 448.27 - -7.03 0.00
UK Sovereign Bd Index Fund £ 10.71 - 0.02 2.55
Global Investment Grade Credit - Inst Income $ 12.12 - -0.01 3.65 Regulated Strat Bond Inc Inst (gross) 181.70 - -0.20 -
Pictet-Emerging Markets Index-I USD F $ 204.90 - -1.59 0.00
UK Specialist Equity Income Fund £ 9.32 - -0.06 3.96 RobecoSAM Sm.Energy/A £ 10.99 - -0.10 1.69
Global Investment Grade Credit Fund Inst Acc € € 11.71 - 0.01 0.00 Purisima Investment Fds (UK) (1200)F (UK) Strat Bond Inc Inst 150.00 - -0.10 -
Pictet-Emerging Corporate Bonds I USD $ 105.61 - -0.18 0.00
40 Dukes Place, London EC3A 7NH Global Emerg Mkts Equity Fund £ 10.22 - -0.09 0.53 RobecoSAM Sm.Energy/N € 11.54 - -0.08 0.00
Global Investment Grade Credit Fund Inst Acc $ $ 16.57 - -0.02 0.00 Order Desk and Enquiries: 0345 922 0044 Strat Bond Acc Inst 151.10 - -0.20 -
Pictet-Emerging Markets High Dividend I USD $ 88.40 - -1.61 0.00
Global Spec Inv Grade Bd Fund GBP £ 9.64 - -0.02 3.08 RobecoSAM Sm.Materials/A £ 119.32 - -0.02 1.42
Global Multi-Asset - Inst Acc $ 14.38 - -0.01 0.00 Authorised Inv Funds Managed Investments OEIC 3
Pictet-Emerging Markets Sust Eq I USD $ 79.90 - -1.00 0.00
Authorised Corporate Director - Capita Financial Managers Series 6 (Investment Management Customers Only) RobecoSAM Sm.Materials/N € 142.48 - 0.20 0.00 Div Inc Port Inc Ret 170.70 - -1.70 -
Global Real Return - Inst Acc $ 17.90 - -0.04 0.00
Pictet-Environmental Megatrend Sel I EUR € 159.91 - -0.29 0.00 Global Total Fd PCG A 166.01 - 0.14 0.35 United Kingdom Equity Index Fund £ 14.85 - -0.09 3.35 RobecoSAM Sm.Materials/Na € 98.32 - 0.14 - Corp Bond Acc Inst (gross) 213.50 - -0.20 -
Income Fund Inst Acc $ 12.32 - -0.04 0.00
Pictet-EUR Bonds-I F € 556.91 - 0.40 0.00 Global Total Fd PCG B 164.51 - 0.14 0.13 UK Specialist Equity £ 19.05 - -0.10 1.76 RobecoSAM Gl.Small Cap Eq/A £ 76.19 - 0.03 1.30 Corp Bond Inc Inst 142.40 - -0.10 -
Inflation Strategy Fund Inst Acc $ 8.66 - -0.05 0.00
Pictet-EUR Corporate Bonds Ex Fin i EUR € 143.07 - 0.22 0.00 Global Total Fd PCG INT 162.35 - 0.14 0.00 Contl Europe Specialist Fund £ 23.91 - -0.21 0.62 RobecoSAM Gl.Small Cap Eq/N € 157.55 - 0.29 0.00 Corp Bond Acc Inst 145.00 - -0.10 -
Low Average Duration - Inst Acc $ 14.78 - -0.01 0.00
Pictet-EUR Corporate Bonds-I F € 199.57 - 0.20 0.00 Japan Specialist Fund £ 15.58 - -0.06 0.51 RobecoSAM Sustainable Gl.Eq/B € 180.74 - 0.58 0.00 Multi-Manager OEIC
PIMCO RAE Fundam.PLUS Em.Mkts Inst Acc $ 7.98 - -0.11 0.00
Pictet-EUR Government Bonds I EUR € 158.54 - 0.16 0.00 US Spec Equity Fund £ 19.54 - -0.05 0.16 Bal Intl Track Acc Ret 258.60 - -2.50 -
RobecoSAM Sustainable Gl.Eq/N € 155.97 - 0.51 0.00
PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 10.74 - 0.00 0.00 Purisima Investment Fds (CI) Ltd (JER)
Pictet-EUR High Yield-I F € 241.99 - -0.34 0.00 Pacific Basin Specialist Equity Fund £ 36.49 - -0.31 1.38 Bond Mthly Inc Acc Ret 143.40 - -0.10 -
Regulated RobecoSAM S.HealthyLiv/B € 177.03 - 0.56 0.00
PIMCO RAE Fundam.PLUS US Inst Acc $ 12.13 - 0.02 0.00
Pictet-EUR Short Mid-Term Bonds-I F € 136.85 - -0.01 0.00 PCG B 166.61 - -2.77 0.00 UK Sovereign Bd Index Fund £ 10.84 - 0.02 2.55 Bond Mthly Inc Inc Ret 91.80 - -0.08 -
RobecoSAM S.HealthyLiv/N € 164.95 - 0.53 0.00
Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.48 - -0.05 0.00
Pictet-EUR Short Term HY I EUR € 119.58 - -0.06 0.00 PCG C 164.29 - -2.73 0.00 UK Specialist Equity Income Fund £ 10.12 - -0.07 3.88 RobecoSAM S.HealthyLiv/Na £ 103.79 - 0.18 -
StocksPLUS{TM} - Inst Acc $ 23.12 - 0.09 0.00
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.97 - 0.00 0.00 Global Spec Inv Grade Bd Fund GBP £ 9.94 - -0.01 3.08 RobecoSAM S.Water/A £ 164.15 - -1.03 1.21
Total Return Bond - Inst Acc $ 27.11 - -0.05 0.00 Santander Asset Management UK Limited (1200)F (UK)
Pictet-Euroland Index IS EUR € 131.54 - -0.05 0.00 Global Emerg Mkts Equity Fund £ 10.16 - -0.09 0.76 RobecoSAM S.Water/N € 163.79 - -0.77 0.00 287 St Vincent Street, Glasgow G2 5NB 0845 605 4400
UK Corporate Bond - Inst Acc £ 17.28 - 0.02 0.00 Putnam Investments (Ireland) Ltd (IRL)
Pictet-Europe Index-I EUR F € 168.64 - -0.46 0.00 Address and telephone number for Series 5 only Authorised Inv Funds
Regulated
UK Long Term Corp. Bnd Inst-Inst Acc £ 19.22 - 0.04 0.00 Santander Premium Fund (OEIC)
Pictet-European Equity Selection-I EUR F € 622.20 - -3.24 0.00 Putnam New Flag Euro High Yield Plc - E € 1017.19 - -0.88 4.27
UK Low Duration - Inst Acc £ 14.06 - -0.01 0.00 A Shares
Pictet-European Sust Eq-I EUR F € 242.57 - -1.00 0.00
Royal London Unit Managers Ltd. (1200) F (UK) Europe (ex-UK) 270.00 - -3.50 -
UK Real Return - Inst Acc £ 22.70 - -0.04 0.00
Pictet-Global Bds Fundamental I USD $ 116.71 - 0.08 0.00 5th Floor, Churchgate House, 56 Oxford Street, Manchester M1 6EU 03456 057777 Japan Equities 155.90 - 0.70 -
UK Sterling Long Average Duration - Inst Acc £ 21.76 - 0.05 0.00 Authorised Inv Funds
Pictet-Global Bonds-I EUR € 164.44 - 0.34 0.00
Royal London Sustainable Diversified A Inc £ 1.55 - 0.00 2.01 Pacific Bas (ex-Japan) 485.20 - -4.90 -
Unconstrained Bond - Inst Acc $ 11.89 - 0.00 0.00
Pictet-Global Emerging Currencies-I USD F $ 95.83 - -0.17 0.00
Royal London Sustainable World A Inc 170.30 - -0.40 0.81 Sterling Bonds 264.60 - -0.30 -
US High Yield Bond Fund Inst Acc $ 27.04 - -0.03 0.00
Pictet-Global Emerging Debt-I USD F $ 354.51 - -0.82 0.00
Royal London Corporate Bond Mth Income 88.81 93.48 -0.06 4.16 Santander Asset Management UK Limited (1200)F (UK) UK Equities 262.90 - -2.40 -
Pictet-Global Megatrend Selection-I USD F $ 221.48 - 0.05 0.00 287 St Vincent Street, Glasgow G2 5NB, 0845 6000 181
Royal London European Growth Trust 107.60 113.30 -1.40 0.41 US Equities 265.40 - 0.80 -
Authorised Funds
Pictet-Greater China-I USD F $ 437.36 - -5.51 0.00 Ram Active Investments SA
Royal London Sustainable Leaders A Inc 453.50 - -2.90 0.80 Santander Atlas Range B Shares
www.ram-ai.com
Pictet-Health-I USD $ 268.11 - 1.77 0.00 Santander Atlas Inc Port Acc Inst 285.60 - -1.00 - Pacific Bas (ex-Japan) 484.50 - -4.90 -
Other International Funds Royal London UK Growth Trust 469.00 493.70 -3.80 1.44
Pictet-High Dividend Sel I EUR F € 153.21 - -0.06 0.00 RAM Systematic Emerg Markets Core Eq $ 77.80 - -0.98 - Santander Atlas Inc Port Inc Inst 219.60 - -0.80 -
Royal London UK Income With Growth Trust 219.10 230.60 -1.70 4.40
Pictet-India Index I USD $ 91.51 - 1.12 0.00 RAM Systematic Emerg Markets Eq $ 139.55 - -0.81 - Santander Atlas Port 3 Acc Ret 147.70 - -0.20 -
Royal London US Growth Trust 152.40 160.20 0.60 0.00 Saracen Fund Managers Ltd (1000)F (UK)
Pictet-Indian Equities-I USD F $ 420.85 - -5.38 0.00 RAM Systematic European Eq € 381.41 - -1.74 - Santander Atlas Port 3 Inc Ret 101.80 - -0.20 -
Additional Funds Available 19 Rutland Square, Edinburgh EH1 2BB
Platinum Capital Management Ltd Dealing: 00 353 1 603 9921
Pictet-Japan Index-I JPY F ¥ 16366.76 - 100.87 0.00 RAM Systematic Global Shareholder Yield Eq $ 98.67 - -0.11 0.00 Please see www.royallondon.com for details Santander Atlas Port 3 Acc Inst 162.40 - -0.20 -
Other International Funds
Saracen Investment Funds ICVC (OEIC) Enq. 0131 202 9100
Pictet-Japanese Equities Opp-I JPY F ¥ 9901.08 - 54.24 0.00 Platinum All Star Fund - A (Est) $ 117.46 - - - RAM Systematic Long/Short Emerg Markets Eq $ 119.15 - 0.02 - Santander Atlas Port 4 Acc Ret 179.30 - -0.50 -
Authorised Inv Funds
Pictet-Japanese Equity Selection-I JPY F ¥ 14697.05 - 77.45 0.00 Platinum Global Dividend Fund - A (Est) $ 57.25 - - - RAM Systematic Long/Short European Eq € 145.80 - -0.36 - Santander Atlas Port 4 Inc Ret 128.30 - -0.40 - Saracen Growth Fd Alpha Acc £ 3.66 - 0.01 0.98

Pictet-LATAM Index I USD $ 49.19 - -0.53 0.00 Platinum Maverick Enhanced Fund Limited (Est) $ 96.39 - - 0.00 RAM Systematic North American Eq $ 227.49 - 0.68 - Santander Atlas Port 4 Acc Inst 162.80 - -0.50 - Saracen Growth Fd Beta Acc £ 5.84 - 0.00 1.46

Pictet-LATAM Lc Ccy Dbt-I USD F $ 107.34 - -0.76 0.00 RAM Tactical Convertibles Europe € 143.43 - -0.13 - Santander Atlas Port 5 Acc Ret 188.50 - -0.90 - Saracen Global Income & Growth Fund A - Acc £ 1.12 - 0.00 3.03

Pictet-Pacific Ex Japan Index-I USD F $ 319.77 - -0.04 0.00 RAM Tactical Global Bond Total Return € 138.65 - -0.13 - Santander Atlas Port 5 Acc Inst 160.00 - -0.80 - Saracen Global Income & Growth Fund A - Dist £ 1.04 - 0.00 2.76

Pictet-Premium Brands-I EUR F € 153.54 - 0.06 0.00 RAM Tactical II Asia Bond Total Return $ 125.38 - -0.04 - Santander Atlas Port 6 Acc Ret 255.90 - -1.70 - Saracen Global Income and Growth Fund -Acc £ 1.39 - 0.00 3.39

Pictet-Quality Global Equities I USD $ 132.74 - -0.39 0.00 Santander Atlas Port 6 Acc X 182.70 - -1.20 - Saracen Global Income and Growth Fund -Dist £ 1.22 - -0.01 2.79
FINANCIAL TIMES Monday 14 December 2015 FTfm | 19

FTfm

Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield

Saracen UK Income Fund - Acc £ 0.96 - 0.00 - Japan Synthetic Warrant USD Hedged Class $ 199.30 - 1.36 0.00 UBS Global Allocation (UK) B Acc £ 1.05 - -0.01 1.42 Veritas Global Focus Fund B EUR € 16.28 - -0.11 0.00

Saracen UK Income Fund - Dist £ 0.95 - 0.00 - Renminbi Bond Fund AUD Cls A A$ 120.20 - -0.52 3.82 UBS Global Enhanced Equity Income C Inc £ 0.45 - 0.00 10.94 Veritas Global Equity Income Fund B GBP £ 126.32 - -1.42 4.11
The National Investor (TNI)
. Renminbi Bond Fund AUD Cls B A$ 121.95 - -0.53 3.57 UBS US Growth Fund B Acc £ 1.54 - 0.01 0.00 Veritas Global Equity Income Fund B EUR € 175.94 - -2.69 3.93
www.tni.ae
For Save & Prosper please see Countrywide Assured
Renminbi Bond Fund CHF Cls A SFr 116.98 - -0.50 3.88 Other International Funds UBS Emerging Markets Equity Income B Inc £ 0.33 - 0.00 6.60 Veritas Global Equity Income Fund B USD $ 106.63 - -1.41 4.13
TNI Blue Chip UAE Fund * AED 9.28 - -0.06 0.00
Renminbi Bond Fund CHF Cls B SFr 116.69 - -0.51 3.64 Veritas Global Real Return Fund B USD $ 19.50 - -0.04 0.00
TNI Funds Ltd (BMU)
Schroder Property Managers (Jersey) Ltd Renminbi Bond Fund CNH Cls A CNH 127.33 - -0.10 3.33 Veritas Global Real Return Fund B GBP £ 11.05 - -0.03 0.00
MENA Hedge Fund $ 905.00 - -40.66 0.00
Other International Funds Unicapital Investments (LUX)
Renminbi Bond Fund CNH Cls B CNH 126.98 - -0.11 3.10 Veritas Global Real Return Fund B EUR € 12.69 - -0.02 0.00
Indirect Real Estate SIRE £ 133.22 139.31 0.83 2.34 TNI Funds Plc (Ireland) Regulated
Renminbi Bond Fund Euro Cls B € 118.45 - -0.51 3.64 MENA UCITS Fund * $ 1064.84 - -23.83 0.00 Investments III € 5.03 - -22.38 -

Renminbi Bond Fund GBP Cls B £ 120.52 - -0.52 3.42 Investments IV - European Private Eq. € 247.75 260.13 -44.58 -
Veritas Asset Management LLP
Scottish Friendly Asset Managers Ltd (UK) Renminbi Bond Fund SGD Cls B S$ 119.74 - -0.51 3.38 Investments IV - Global Private Eq. € 366.42 384.74 -49.81 -
www.veritas-asset.com
Scottish Friendly Hse, 16 Blythswood Sq, Glasgow G2 4HJ 0141 275 5000
Renminbi Bond Fund USD Cls B $ 119.85 - -0.53 3.19 Thesis Unit Trust Management Limited (UK)
Other International Funds
Authorised Inv Funds Exchange Building, St Johns Street, Chichester, West Sussex, PO19 1UP
Real Return Asian Fund USD € 282.95 - -0.90 0.00
Managed Growth 237.70 - -1.10 0.00 Renminbi Bond Fund YEN Cls B ¥ 13196.74 - -57.10 0.00 Authorised Funds
TM New Court Fund A 2011 Inc £ 12.77 - -0.03 0.00 Unicorn Asset Management Ltd (UK) Real Return Asian Fund GBP £ 302.30 - -0.89 0.00
UK Growth 260.20 - -1.20 0.00 Renminbi Bond Fund USD Cls A $ 165.35 - -0.71 3.43
PO Box 10602, Chelmsford, Essex, CM1 9PD 0845 026 4287
TM New Court Fund - A 2014 Acc £ 12.80 - -0.03 0.00 Real Return Asian Fund EUR $ 298.49 - -0.89 0.00
Renminbi Bond Fund GBP Cls A £ 160.73 - -0.69 3.66 Authorised Inv Funds
TM New Court Equity Growth Fund - Inc £ 12.83 - -0.04 0.00 UK Growth A Inc 410.73 - 0.22 0.00
Renminbi Bond Fund SGD Cls A S$ 158.69 - -0.68 3.62
SIA (SIA Funds AG) (LUX)
Renminbi Bond Fund YEN Cls A ¥ 19541.30 - -84.39 0.00
Mastertrust A Inc F 361.57 - -1.17 0.07
Regulated Waverton Investment Funds Plc (1600)F (IRL)
UK Growth B Inc 412.08 - 0.23 0.56
LTIF Classic € 328.98 - -0.64 0.00 Renminbi Bond Fund EUR Cls A € 109.00 - -0.46 3.88 waverton.investments@citi.com
Mastertrust B Inc F 324.13 - -1.04 0.91 FCA Recognised
LTIF Natural Resources € 68.49 - -0.59 0.00
Waverton Asia Pacific A USD $ 17.12 - -0.16 5.27
Outstanding British Cos A Acc F 253.41 - -0.55 0.66
LTIF Stability A ACCU € 161.58 - -0.47 0.00
Waverton Global Bond Fund Cls A $ 8.76 - 0.00 5.41
Outstanding British Cos B Acc F 264.84 - -0.57 1.42
Waverton Global Equity Fund A GBP £ 13.34 - 0.01 0.58
UK Smaller Cos A Inc F 437.81 - 0.46 0.35
Waverton UK Fund A GBP £ 12.96 - -0.11 1.83
SIA (SIA Funds AG) (CH) Toscafund Asset Management LLP (UK) UK Smaller Cos B Inc F 428.02 - 0.46 1.22
Other International Fds www.toscafund.com Waverton Equity Fund A GBP £ 14.43 - -0.10 0.19
UK Income A Acc F 265.12 - -0.09 3.88
LTIF Stability Growth SFr 190.40 - -8.70 - Authorised Funds
Waverton Sterling Bond Fund A GBP £ 9.46 - -0.02 5.31
Aptus Global Financials B Acc £ 3.11 - 0.01 4.53 UK Income A Inc F 237.85 - -0.08 3.97
LTIF Stability Inc Plus SFr 163.50 - -13.40 5.80 E.I. Sturdza Strategic Management Limited (GSY)
Regulated Aptus Global Financials B Inc £ 2.76 - 0.01 4.53 UK Income B Acc F 281.61 - -0.09 3.86
Nippon Growth Fund Limited ¥ 101857.00 - -4296.00 0.00
UK Income B Inc F 252.76 - -0.08 3.95
Strat Evarich Japan Fd Ltd JPY ¥ 93700.00 - -1641.00 0.00
WA Fixed Income Fund Plc (IRL)
Smith & Williamson Investment Management (1200)F (UK) Regulated
25 Moorgate, London, EC2R 6AY 020 7131 8100 Strat Evarich Japan Fd Ltd USD $ 927.88 - -15.71 0.00 Toscafund Asset Management LLP (CYM) European Multi-Sector € 116.86 - 0.15 0.00
www.sandwfunds.com www.toscafund.com
Authorised Inv Funds Regulated
European Equity Fund A Class 495.60 - -4.80 0.73 Tosca A USD (Est) $ 302.50 - 5.17 0.00
E.I. Sturdza Funds PLC (IRL)
Far Eastern Income and Growth Fund A Class 412.80 - -1.00 3.14 Regulated Tosca Mid Cap GBP £ 259.26 - 0.54 0.00
Fixed Interest Fund A Class 120.80xd - 0.00 3.11 Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 1097.82 - -13.40 0.00 Tosca Opportunity B USD $ 357.47 - 5.56 0.00
Global Gold and Resources Fund A Class 128.50 - -1.00 0.00 Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1293.02 - -15.78 0.00
Value Partners Hong Kong Limited (IRL)
MM Endurance Balanced Fund A Class 209.30 - -1.90 1.19 Nippon Growth (UCITS) Fund JPY Class A shares ¥ 101537.00 - -1223.00 0.00 www.valuepartners.net, fis@vp.com.hk
Regulated
MM Global Investment Fund A Class 2056.00 - -12.00 1.83 Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 85142.00 - -1025.00 0.00 Yuki International Limited (IRL)
Value Partners Asia ex-Japan Equity Fund $ 8.60 - -0.01 -
Tel +44-20-7269-0207 www.yukifunds.com
North American Fund A Class 1687.00 - 9.00 0.00 Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 82212.00 - 968.00 0.00
Value Partners Classic Equity Fund USD Z Unhedged $ 11.03 - -0.11 0.00 Regulated
Oriental Growth Fund A Class 144.80
Asset Management
- -1.20 1.01 Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 55122.00 - -663.00 0.00
Value Partners Classic Equity Fund CHF HedgedSFr 11.55 - -0.13 0.00
Yuki Mizuho Umbrella Fund

UK Equity Growth Fund A Class 404.50 - -3.00 0.66 Strategic China Panda Fund USD $ 2236.66 - -11.37 0.00
Asset Management Value Partners Classic Equity Fund EUR Hedged € 11.68 - -0.12 0.00 Asset Management
Yuki Mizuho Japan Dynamic Growth ¥ 6911.00

Yuki Mizuho Japan Large Cap ¥ 777.62

-

-
19.00 0.00

-0.38 0.00
UK Equity Income Fund A Class 217.50 - -1.30 4.68 Strategic China Panda Fund Hedged EURO € 2183.88 - -10.85 0.00 TreeTop Asset Management S.A. (LUX)
Value Partners Classic Equity Fund GBP Hedged £ 11.95 - -0.12 0.00
Regulated Yuki Japan Low Price ¥ 26980.00 - 209.00 0.00
Strategic China Panda Fund Hedged Sterling £ 2212.29 - -11.08 0.00
TreeTop Convertible Sicav Value Partners Classic Equity Fund GBP Unhedged £ 12.46 - -0.14 0.00
Yuki Japan Value Select ¥ 12574.00 - 63.00 0.00
Strategic Euro Bond Accumulating Class CHFSFr 984.16 - -0.34 0.00 International A € 301.70 - 0.38 0.00 Value Partners Classic Equity USD Hedged $ 13.58 - -0.13 0.00
Smith & Williamson Fd Admin Ltd (1200)F (UK)
Strategic Euro Bond Institutional Class EUR € 1010.91 - -0.15 0.00 YMR Umbrella Fund
International B $ 386.45 - 0.40 0.00 Value Partners Greater China Equity Fund $ 8.46 - -0.06 -
25 Moorgate, London, EC2R 6AY 0141 222 1150 YMR N Growth ¥ 17195.00 - 38.00 0.00
Authorised Inv Funds Strategic Euro Bond Fund Accumulating Class Shares € 1133.47 - -0.17 0.00 International C £ 130.30 - 0.15 0.00 Value Partners Health Care Fund RMB Class Z UnhedgedCNH 9.92 - 0.00 - Yuki Asia Umbrella Fund
S&W Deucalion Fd (OEIC) 2085.00 - -41.00 0.27 Strategic Euro Bond Fund Distributing Class Shares € 1022.92 - -0.16 1.33 International D € 280.02 - 0.34 2.94 Value Partners Health Care Fund HKD Class A UnhedgedHK$ 9.34 - -0.01 - Yuki Japan Rebounding Growth Fund JPY Class ¥ 23521.00 - 71.00 0.00
S & W Magnum 371.70 392.80 -0.90 1.91 Strategic European Smaller Companies Fund EUR Class € 992.20 - -5.77 - TreeTop Global Sicav Value Partners Health Care Fund USD Class A Unhedged $ 9.37 - -0.01 - Yuki Japan Rebounding Growth Fund USD Hedged Class $ 934.44 - 2.72 -
S & W Marathon Trust 182.60 193.20 -1.00 1.73 Strategic Global Bond RMB Acc $ 1054.14 - 0.87 0.00 Global Opp.A € 139.96 - -0.57 0.00
Charity Value and Income Fund Acc 137.30 138.20 -1.00 4.52 Strategic Global Bond USD Acc $ 1042.18 - -0.84 0.00 Global Opp.B $ 137.97 - -0.51 0.00
Charity Value and Income Fund Inc 92.48 93.08 -0.68 4.64 Strategic US Momentum and Value Fund $ 776.32 - 2.96 0.00 Global Opp.C £ 174.36 - -0.52 0.00 Veritas Asset Management LLP (IRL) Zadig Gestion (Memnon Fund) (LUX)
HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland FCA Recognised
Strategic US Momentum & Value Fund USD I Class $ 515.51 - 1.97 0.00 Sequoia Equity A € 143.36 - -0.28 0.00
Veritas Funds Plc Memnon European Fund I GBP £ 111.95 - -0.51 0.00
Strategic US Momentum and Value EUR Hedged Class EUR € 541.89 - 2.07 0.00 Sequoia Equity B $ 146.53 - -0.39 0.00 www.veritas-asset.com
Standard Life Wealth (JER)
+353 1 635 6799
Strategic US Momentum and Value CHF Hedged Class CHFSFr 538.93 - 1.95 0.00 Sequoia Equity C £ 165.66 - -0.30 0.00
PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
FCA Recognised
FCA Recognised
Institutional
Zebedee Capital Partners LLP (CYM)
Standard Life Offshore Strategy Fund Limited Regulated
Veritas Asian Fund A USD H $ 306.39 - -2.85 0.43
Bridge Fund £ 1.6089 - -0.0041 2.00 Zebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00
Taube Hodson Stonex Ptnrs UT (1200)F (UK) Veritas Asian Fund A GBP H £ 373.78 - -2.85 0.24
Diversified Assets Fund £ 1.1743 - -0.0028 2.85 50 Bank Street, Canary Wharf, London E14 5NT Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00
Admin: 50 Bank Street, Canary Wharf, London E14 5NT Veritas Asian Fund A EUR H € 316.68 - -3.11 0.21
Global Equity Fund £ 1.8837 - -0.0018 1.04 Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00
Dealing & Enquiries: 0870 870 8433 Veritas China Fund A USD $ 139.83 - -2.42 0.36
Global Balanced Fund - Income Units £ 1.3352 - -0.0038 1.89 Authorised Inv Funds
Veritas China Fund A GBP £ 144.83 - -2.49 0.37
Global Balanced Fund - Accumulations Units £ 1.5497 - -0.0045 1.86 THS Growth & Value Funds
International Troy Asset Mgt Ltd (UK) Veritas China Fund A EUR € 138.45 - -2.39 0.37
Global Fixed Interest Fund £ 0.9855 - -0.0020 5.10
IGV - Inc A 313.20 - -2.60 2.42 40 Dukes Place, London EC3A 7NH
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IGV - Acc Y 410.20 - -3.30 2.38 Trojan Investment Funds
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20 | FTfm
The week
C Gordon Brown, the former
UK prime minister, is to
become an adviser at Pimco,
the $1.5tn US asset manager. In
his first significant private
sector role since leaving
Downing Street in 2010, Mr
Brown will work alongside the
former Federal Reserve
chairman, Ben Bernanke, and
the former president of the
European Central Bank, Jean-
Claude Trichet.
Andrew Balls, Pimco’s chief
investment officer for global
fixed income, is the younger
brother of Ed Balls, Labour’s
former shadow chancellor and
one of Mr Brown’s closest allies.
C Sweden has ditched plans to
reform its pension system after
the government and
opposition parties failed to
reach agreement. Sweden’s
central bank had
complained that the
proposed reforms
would make long-
term investment by
the country’s
pension funds
“difficult if not
impossible”.
But Per
Bolund,
the
deputy
minister for finance, pointed
the finger of blame at the
government’s opponents.
“Political prestige from the
Swedish conservative party
[Moderaterna] has triumphed
over consideration for future
and current pensioners,” said
Mr Bolund.
C Vanguard signalled the start
of a fresh assault in Europe
with the launch last week of a
range of low-cost actively
managed exchange traded
funds that have been
deliberately priced to undercut
rivals, an initiative that
threatens to disrupt the
business of dozens of UK and
European asset managers.
Gordon Brown is to become an adviser at Pimco, working
alongside Ben Bernanke and Jean-Claude Trichet EPA/Blooomberg
FINANCIAL TIMES Monday 14 December 2015
NEWS
THE LAST WORD QUOTE OF THE WEEK
James Mackintosh INSIDE AND Mick McAteer,
Investors long ago Financial Inclusion
embraced the idea ONLINE Centre
that more risk brings ‘The investment
higher rewards. But industry is one of the
how to measure it? Even worst-performing VIDEO
theorists accept real risk industries consumers deal Climate change action
Index investors’
includes permanent loss with and a range of
Finra highlighted ‘emerging
risks’ in ETFs and junk debt and dangers that cannot interventions is needed to efforts to reduce their
be quantified make this market work’ carbon footprint
PAGE 12 PAGE 1 VIDEO.FT.COM/FTFM
C A former employee of Gottex
“misappropriated” almost $3m
of the Swiss investment
boutique’s corporate assets
between 2013 and 2015. Gottex
described the theft as an
“isolated instance of improper
business conduct” and stressed
no client assets were involved.
Maximilian Gottschalk, the
son of Gottex’s founder,
Joachim Gottschalk, has
resigned as an executive
director but the company said
his departure and the fraud
were unrelated.
C Third Avenue shut the door
of its $800m high-yield bond
fund last week after the US
asset manager said it had
run out of money to
repay investors
without having to
dump bonds at
fire-sale prices.
The Third
Avenue
Focused
Credit fund
has slumped 27 per cent this
year. Its closure is the biggest
fund failure since the Reserve
Primary money market fund
broke the buck after the
collapse of Lehman Brothers in
2008.
C The Financial Industry
Regulatory Authority, a US
regulator, last week highlighted
“emerging risks” in exchange
traded bond funds and junk
debt.
But Finra also rebuffed
concerns about the overall
health of the US corporate
bond market, pointing to
strong new issuance and
increased trading volumes as
evidence of a robust market.

Monday December 14 2015
Slick start-ups
aim to erode
traditional
market areas
Industry faces big challenges to keep pace with
fresh competition, says Laura Noonan
S
ignificant change is sweeping
through the banking industry
as new technologies, competi-
tors, leadership, regulations
and an urgency to boost prof-
its spur bosses into action.
“We are on the brink of brutal disrup-
tion,” says Francisco González, who has
spent almost 15 years at the helm of
Spanish bank BBVA, Europe’s sixth larg-
est bank by market value.
Banks are racing to master technolo-
gies that could revolutionise their effi-
ciency if they get them right, or cost
them substantial amounts of business if
they are beaten to it by technology-
savvy newcomers such as payments
innovator Alibaba and Apple Pay.
In Europe, four of the biggest banks
are under new leadership, while lenders
across the eurozone are taking their
cues from a new regulator. In the US,
FT SPECIAL REPORT
The Future of Banking
www.ft.com/reports | @ftreports
see technology and the advent of new
Inside
competitors as the biggest development
in this era of banking. Mr González says
banks must “undergo massive transfor-
mations” to compete with digital start-
ups that do not have the legacy costs of
Regulation pushes
banks away from roots
the industry’s incumbents.
IT platforms are the “most critical”
thing to overhaul, he believes. But the
changes do not stop there.
“Once the foundations are in place,
Focus on ‘capital light’
activities signals less
lending and trading
Page 2
everything else needs also to change,” he
adds. “Processes, digital skills, distribu-
tion model, product offering through all
channels, culture, mindset, structure,
and more. There is no end to change.”
BBVA is well into its journey. Eight
Europe still struggling
to achieve integration
Cross-border M&A and
EU policy could help
years ago, the Spanish bank began an IT
overhaul that enabled its systems to
Page 2
New chiefs are sign of
desire for change
Banks are racing to master Banks are suffering
new technologies that painful restructuring
could revolutionise Page 3
their efficiency Will labs give leading
institutions the edge?
banks are dealing with the practical tolerate the fivefold increase in daily
implications of rules drawn up in the transactions since 2006.
Citi, Barclays
aftermath of the financial crisis that are Last month, it announced it was tak- and
only now fully coming into force. ing a 30 per cent stake in UK online-only Deutsche
In spite of ever-increasing capital bank Atom, which Mr González says are all
demands, banks on both sides of the understands “better than most” the
Atlantic must make higher profits to challenge of delivering “ultra conven- betting
keep their investors happy, even though ient solutions” to customers 24/7. on fintech,
they are blocked from pursuing some of Huw van Steenis, banks analyst at so biometric
their old activities. This is prompting Morgan Stanley, says there has been a
them to consider further cost-cutting “sea change” in the way bosses think eyeball scanners are
measures, such as merging more of their about the threat of new competitors. part of the future
back office functions. “Last year, most chief executives Page 4
“Change is accelerating,” says Feder- thought that regulation would deter
ico Ghizzoni, chief executive of Italian new entrants as core banking and other Risks and rewards of
bank UniCredit. He believes the next regulated parts of financial services had
five years will bring changes even bigger become less appealing,” says Mr van reaching the unbanked
than the past five, when EU banks cut Steenis. “Now there’s a growing sense Sub-Saharan Africa has
more than 225,000 staff and radically that new entrants can skim the cream the greatest penetration
downsized to deal with the aftermath of and expose the banks’ high legacy
the 2008 financial crisis. cost bases. Banks are much more of mobile money
Both Mr González and Mr Ghizzoni Continued on page 2 Page 4
2 ★
Regulation pushes investment banks away from roots
Competition
Focus on ‘capital-light’
activities signals less lending
and trading and more
advisory, says Laura Noonan
The wave of regulation that sprung from
the financial crisis has pushed invest-
ment banks further and further away
from their roots. Instead they are going
deeper into the “capital light” activities
(which require less regulatory capital)
that are being carried out with equal vig-
our by non-banks.
The recently unveiled strategic plans
of Deutsche Bank, Credit Suisse and
Barclays are a case in point — all are
repositioning towards activities such as
advising on mergers and acquisitions
and helping clients raise finance, while
turning away from more traditional
activities such as lending and trading.
In a few years, the central activities of
these European investment banks could
be indistinguishable from those of their
non-banking rivals, such as the advisory
Integration in
Europe still lags
behind the
pre-crisis era
Single market EU policy and cross-border mergers
could help redress balance, writes Jim Brunsden
T
he European Union has
long sought a seamless,
integrated, EU banking
market. It even has a mis-
sion statement of what one
would look like.
“Under full financial integration,
banking markets would efficiently allo-
cate resources to the most productive
investment opportunities across the
euro area, without frictions in the flow
of funds across borders,’’ says a report
published by the European Central
Bank in April.
The reality in Europe today is a long
way from that pure vision. Banks often
still have a strong bias towards investing
in their home markets, and face political
pressure to do so.
The financial crisis has also taken its
toll. According to the ECB, the level of
integration in euro area banking mar-
kets still lags behind that of the pre-cri-
sis era.
At the consumer level, as anyone who
has tried to move to another European
country without setting up a local bank
account can attest, the complications of
cross-border retail banking can still be
considerable.
This matters because the economic
stakes are high, especially in the euro
Q&A: the ‘absolutely essential’ role of technology
Interview Don Duet
Goldman Sachs’ co-head
of technology, talks to
Ben McLannahan about the
crucial role of his unit
The day before Don Duet talked to the
FT, Goldman Sachs had promoted 38
managing directors to its technology
division. The slew of promotions were,
says Mr Duet, a reflection of the
“absolutely essential” role his unit plays
as the firm grapples with myriad new
regulations and looks to push in new
business directions.
Goldman’s tech division has grown to
9,000 people, plus another 3,000 or so
strategists, which is about the same as
the entire staff of Facebook. How do
you see your mission?
It’s about risk management, it’s about
electronic trading and it’s become more
and more about algorithmic solutions.
All of those are underpinned by deep
investments in technological capability.
Our focus is not just on the front side
— dealing with clients and markets —
but also on how we process those
boutiques that help with deals and fund-
raising, some of the large asset manag-
ers, or the big four accounting firms
which now boast corporate finance divi-
sions.
Figures from consultancy Tricumen
show three of the biggest advisory bou-
tiques — Greenhill, Evercore and Lazard
— have increased their M&A/advisory
fees by 13 per cent since 2007, a period
when the revenues of broader invest-
ment banks collapsed.
So is the future of investment banking
one where the banking part is optional?
Not if you believe Manolo Falco, head
of Citi’s Emea corporate and investment
bank. “It’s unclear if banks with that
[capital light] model will make a good
return,” he says. “I do think it’s a highly
competitive terrain.”
He believes you have to have a sizea-
ble market share to make the advisory
business work and says that might not
be achievable for all banks.
Citi is sticking with its original bet — a
full service global bank spanning over
160 countries, albeit considerably
shrunken from its pre-crisis tally.
Regulations which have made some
area, where regulators see an integrated
banking market as a crucial step to
underpin the euro. If credit markets are
fragmented it weakens the intended
impact of monetary policy decisions
taken by the ECB.
The breakdown of cross-border
investment in the wake of the 2008
financial crisis was cited by the ECB as a
key justification for extraordinary
measures such as its targeted long-term
refinancing operations and asset pur-
chase programmes.
For Nicolas Véron, a senior fellow at
think-tank Bruegel, a wave of cross-bor-
der mergers of European banks could
provide the most realistic short-term
route to a more integrated banking mar-
ket. “There is a desperate need in the
euro area for risk sharing, so that it is
better able to absorb shocks,” he says.
Other than cross-border M&A, he says,
the main ways to achieve this would be
either to have fiscal transfers from
richer to poorer EU nations, an idea rig-
orously opposed by Germany and oth-
ers, or a push to eliminate regulatory
barriers to cross-border investment.
While the EU is seeking to tackle these
barriers through a policy programme
known as the Capital Markets Union, Mr
Véron says that it is likely to take a long
transactions, how we get them through
to clearance and settlement and how we
meet the absolute requirements of trust
that are necessary for moving large
sums of money.
What about the new regulations?
The regulatory change that has come
since the crisis, with respect to capital,
has been a great opportunity for us to
really invest deeply in shifting from
what was more of an intuitive culture
focused on return on equity, to a much
more precise culture. Now we’re asking
exactly how much this trade will cost,
and working out exactly how much
funding is required for this transaction,
and exactly how much capital it will
consume on the balance sheet.
Through a data-driven methodology
we’re trying to bring all those concepts
directly up to the point of sale or
the transaction. We’re moving
to a fact-based, data-driven
organisation.
Describe Symphony, the new
messaging and workflow
management tool backed by a
Don Duet: pushing into
new business areas
FINANCIAL TIMES
The Future of Banking
areas of investment banking more
expensive are a factor in deciding where
advice,” says Daniel Pinto, head of
JPMorgan's corporate and investment
to allocate resources, but it is not a sim-
ple “capital heavy, bad; capital light,
good” process.
bank. “The need for capital is not going
away.”
He adds that JPMorgan is constantly
“We definitely try to focus on the most “fine tuning” its offering so it can seize
attractive areas but at the end of the day, “the efficiencies that come with that
when you’re in 55 countries in this [the scale, so we can continue to offer the full
Emea] region . . . you have a big busi- product suite” to clients.
ness that is also focused on the cap- Swiss bank UBS is the “capital light”
heavy areas,” says Mr Falco. poster child held up by many investors.
UBS has more than halved its balance
sheet since the financial crisis and its
investment bank often boasts a quar-
You have to have a sizeable terly return on equity well above 20 per
market share to make the cent.
The Swiss bank does retain some tra-
advisory business work ditional banking activities, it just does a
lot less of it than it used to.
Other investment bankers in large US UBS’s investment banking chief, And-
groups make the same case. While advi- rea Orcel, says he has scope to
sory is often the best business on a expand the business without more
return-on-equity basis within invest- financial resources, by improving the
ment banks, they say the capacity to productivity of both individuals and
earn advisory revenue often hinges on technology.
the other services a bank provides, such He believes limiting the investment
as lending and trading. bank’s capital imposes discipline and
“Clients still need a firm that can do a keeps it focused on the most profitable
global transaction, not just offer areas. “We are smaller but we are bet-
time to bear fruit. “The only way to get
the sort of risk sharing that the euro-
zone needs in a realistic timeframe is to
have cross-border integration of the
banking system,” he says.
An extreme example of the cracks in
Europe’s banking market emerged in
2012 when Germany and Italy clashed
over demands from German banking
supervisors that Italian lender
UniCredit not transfer funds away from
its German unit.
Michel Barnier, the then EU commis-
sioner in charge of financial regulation,
said at the time that his officials were
monitoring the situation, but did not
outright challenge the practices, which
ran counter to EU rules on free move-
ment of capital. ‘There is a
Officials say such problems should
progressively become a thing of the desperate
past, at least within the euro area, need in the
because of the EU’s decision in 2013 to
turn the ECB into the currency bloc’s top euro area for
banking supervisor, so taking key deci- risk sharing,
sions out of national hands. The ECB
took on the role in November 2014. so that it is
According to Mr Véron, an ECB-led better able
push for a better functioning single mar-
ket also would have financial stability to absorb
benefits. shocks’
“At this point we have national
host of banks and led by Goldman. Why happens in our industry that doesn’t
did you get into it — how big can it get? involve multiple counterparts, working
It was an opportunity for us to do what across many different parts of the
we would think of as market structure ecosystem — exchanges, clearing
change within our own industry. houses, regulators and so on.
If you think about the world of We’d built this Google hang-outs-type
finance, it is a very community-driven architecture for our own purposes, and
business model. Most people don’t as we continued to evolve our thinking
think that — they think it is JPMorgan we felt that there was an opportunity to
fighting Goldman Sachs. take that source code, open source it,
But the fact is, almost nothing then create an entity that could actually
provide that service for the industry.
That led to the purchase of Perzo (an
online chat service start-up) and the
formation of an investor community
that is now Symphony. We have about
19,000 users internally. What we’d love
to see occur over time is for this to be a
way to really open the whole picture for
innovation in our industry.
If I have an open solution that
someone else can use as a basis for
their own ideas, then maybe people
from outside the financial industry
will invest in building solutions that
we can all benefit from.
You’re also pushing into new
areas, with plans to develop an
online lending business
targeting consumers. Why?
Whether it’s demographics-
ter,” Mr Orcel says, pointing to prime
brokerage as a case where UBS has
pared back its resources and makes a
return on assets twice as high as some
competitors. The quest for improve-
ment continues.
“The environment around us is con-
stantly changing,” says Mr Orcel, “so we
need to adapt and find better and more
effective ways to execute and deliver.”
Barclays, Deutsche Bank and Credit
Suisse are all paring back capital-inten-
sive activities though, bankers agree,
none is “doing a UBS”.
Michael Reuther, who is in charge of
Commerzbank’s investment bank, says
the changes taking place in the invest-
ment banking world demand a more
nuanced response.
“Within the new regulatory environ-
ment, investment banking is not a mat-
ter of net operating profit or market
share, but a business of striking the bal-
ance between efficient resource man-
agement and continuing to provide the
services and products your client fran-
chise requires,” he says.
“It is no longer a one-size-fits-all
industry.”
banking markers with massive too-big-
to-fail issues,” he said. “If the ECB man-
ages to make the eurozone a single
banking market then the too-big-to-fail
problem becomes much less acute.”
At the same time, at street level, the
lack of a well functioning single market
for banking is all too apparent. Particu-
lar bugbears include the reluctance of
banks to grant mortgages for houses
based in another country, or to people
whose main residence or source of
income is abroad.
The Commission has pledged to
embark on further measures to remedy
what is says is a “fragmented” financial
services market — a problem that goes
beyond banking. It has pledged new
measures to address this including by
exploring how to unleash the potential
offered by new digital technologies.
According to a Commission policy
document, the average consumer in
Europe faces “a lack of transparency
and comparability of financial services,
biased financial advice, excessively
complex financial products, unfair con-
tract terms, and misleading or aggres-
sive selling practices”. These problems
“can be compounded when consumers
attempt to purchase products across
borders”.
driven or otherwise, you see the world is
moving much more into a digital
paradigm in many elements of
consumer finance.
JPMorgan Chase was recently
embarrassed by a big data leak. How
are you guarding against hackers?
Cyber security is a huge part of our
agenda. In the past, you’d say the biggest
threat to a company like Goldman Sachs
was a large financial risk management
problem, and that probably still is true.
But increasingly, as we are operating
in a digital world, it’s also about cyber
attack, loss of data and so on.
We also believe that security is
everybody’s job. You can’t look at it and
say “well, that’s the team that makes us
safe”. Every person we have, every
engineer in our division is participating
in how they think and design solutions
and services to ensure that they’re
fundamentally secure.
Does that explain all these new MDs in
technology?
It’s recognised here that the value of a
senior person sitting in technology — to
really help us drive our business
forward — is certainly as valuable as
someone in an income-producing seat.
Monday 14 December 2015
Slick start-ups
aim to erode
traditional
market areas
Continued from page 1
nervous about being left with high costs,
highly-commoditised processes and not
much growth.”
UniCredit’s Mr Ghizzoni says banks
see unique advantages in their ability to
meet the “complex needs” of corporate
clients, who seek out banks’ large bal-
ance sheets and expertise in areas such
as trade finance, supply chain finance
and cross-border transactions. To that
end, UniCredit is focused on becoming a
“digital partner” of corporate custom-
ers, firstly 600 global corporate and
investment banking customers, and
then 6,000 Italian corporate clients.
In other areas, the bank will have to
become more nimble. “We will be par-
ticularly focused on instant lending,”
says Mr Ghizzoni. UniCredit will soon be
able to hand over money within min-
utes of a loan application being
approved — a big improvement on the
48 hours it takes now.
Savings are another battleground.
Ronit Ghose, banks analyst at Citi,
describes the “fragmented” savings
market in the US, where mutual and
money market funds hoover up funds
that would once have found their way
into the banking system. So far, Europe
has avoided that, but Mr Ghose says if
interest rates remain low, savings could
ultimately find new, non-bank, homes.
Investment banks will see their share
of big changes as well. The new leaders
at Deutsche Bank, Credit Suisse and
Barclays have all signalled strategic
shifts that will transform their invest-
ment banks into smaller, more focused
players. The European Central Bank,
regulator of banks across the eurozone,
is also taking a keen interest in how
investment banks are capitalised. “The
big impact of regulation is that the
amount of capital you have to hold, par-
4 5x
Number of large The increase in
European banks daily transactions
under new at BBVA since
leadership 2006
ticularly for fixed-income activity in
corporate and investment banking, is
huge,” says Mr Ghose. Particularly con-
tentious are rules on how much capital
banks must hold for their trading books.
By one official reckoning this could
force one unidentified bank to increase
its trading book capital by 800 per cent,
though the sector-wide impact is less
dramatic.
“Regulation means banks need to
comply with more stringent rules and
must redefine more precisely their busi-
ness mission — they cannot do every-
thing like they did in the past,” says Mr
Ghizzoni.
Every dollar needed in extra capital
increases the pressure on banks to
increase profits, because investors are
fixated on return on equity (ROE). If
equity increases and profits do not, then
ROE goes down, and investors protest.
Morgan Stanley says the 38 European
banks it follows are on track to make a
return on tangible equity of just 10.1 per
cent this year — way off the “mid-teens”
that investors demand. Slow economic
growth in most of the developed world,
coupled with increasing competition,
means banks have struggled to increase
revenue, leaving cost-cutting as the only
option for boosting profits.
Contributors
Laura Noonan
Investment banking correspondent
Jim Brunsden
EU correspondent
Ben McLannahan
US banking editor
Martin Arnold
Banking editor
Philip Stafford
Editor, FT Trading Room
Jonathan Wheatley
Editor, EM Squared
Emma Dunkley
Retail banking correspondent
Emma Boyde
Commissioning editor
Steven Bird
Designer
Emily Lewis
Picture editor
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and peter.cammidge@ft.com, or your
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Monday 14 December 2015 ★ FINANCIAL TIMES 3

The Future of Banking

New crop of leaders shows desire for change

Leadership Some of Demanding roles: (from left to right)
Barclays’ Jes Staley, Standard
Europe’s biggest banks Chartered’s Bill Winters, Credit
Suisse’s Tidjane Thiam and
have recruited chief Deutsche’s John Cryan — Bloomberg
executives externally,
to each other,” says Mr Canals. “These
says Martin Arnold banks need to focus much more on their
value proposition and explain it clearly

T
he recent history of banking
is usually measured in rela-
tion to the financial crisis of
2008. But for headhunters
in Europe, 2015 looks like
becoming a new reference point with
the replacement of bosses at four of
Europe’s biggest banks.
The departure of chief executives at
Deutsche Bank, Credit Suisse, Barclays
and Standard Chartered has created the
highest rate of turnover at the top since
the 2008 crisis.
This flurry of changes in Europe con-
trasts with the relatively stable leader-
ship at big US lenders. The bosses of Citi-
group, Bank of America, Morgan
Stanley, Wells Fargo, Goldman Sachs
and JPMorgan have been in place for
three to 10 years.
So why have some of Europe’s largest
banking empires been gripped by regi-
cide? And what does the new crop of
bank chiefs say both about the skills
needed to do the top job at these institu-
tions and the relative appeal of the role?
Dee Symons, a headhunter specialis-
ing in financial services at Russell Rey-
nolds, says the fact that many new bank
chief executives have been recruited
externally indicates a wish to break with
the past in an industry beset with prob-
lems.
Many banks in Europe are facing slug-
gish economic growth, low interest
rates, rising pressure from regulators
and fast-moving competition from tech-
nology-savvy digital challengers. “You
have got a perfect storm that they are
facing,” says Ms Symons. The hiring of
external chief executives signals “a
desire for change”, she adds, and an
acceptance of the view that “many
internal people are part of the problem”.
Barclays and Standard Chartered
turned to former JPMorgan Chase exec-
utives to fill their chief executive vacan-
cies in the form of Jes Staley and Bill
Winters respectively. The two men, who
succeeded each other as heads of JPMor-
gan’s investment bank, have both taken
a few years out of banking to work in
hedge funds.
‘You have Credit Suisse chose even more of an
got to have outsider in Tidjane Thiam to be its chief
executive. By appointing the boss of UK
the ability to insurer Prudential, who has no experi-
take people ence of banking, the Swiss lender has
signalled it is heading for a serious stra-
with you ’ tegic shift — bulking up in wealth man-
Dee Symons agement and Asia — both areas where
Mr Thiam has a proven record.
John Cryan’s appointment at Deut-
sche Bank is not entirely an external one
as the former UBS and Temasek execu-
tive had sat on the German bank’s
supervisory board for two years. But his
arrival is a break with the bank’s tradi-
tion of appointing bosses from within its
executive ranks.
One feature that these banks have in
common is that they are all undergoing
restructuring that involves laying off
thousands of staff, shedding billions of
dollars worth of assets and repositioning
the businesses to adapt to changes in
their environment.
“We have seen changes in manage-
ment at these banks that are going
through a painful process of restructur-
ing and it is going to be difficult,” says
Jordi Canals, dean of Iese Business
School in Barcelona. “But it is much eas-
ier if you know where you want to be
and how you are going to get there.
“When you see a universal bank, you
see a collection of businesses that do not
necessarily make sense and do not talk
to investors and staff.”
To achieve this, Ms Symons says
banks are looking for bosses with expe-
rience of “large scale, transformational
leadership”. She adds: “You have got to
have the ability to take people with you
in a relentlessly negative environment
— you need pretty thick skin.”
In this respect, having some experi-
ence of running a financial institution,
like Mr Thiam has, or running a large
subsidiary of one, like Mr Winters and
Mr Staley have, can be a big plus.
“Having been a chief executive is
important because it is a lonely place,”
says Ms Symons. “Experience of dealing
with a board is vital. These jobs are a
complex multi-stakeholder manage-
ment exercise — dealing with the board,
the regulator, the shareholders, the
media and staff.” Add to the mix the fact
that pay packages are coming under
pressure from both regulators and
shareholders and it is easy to under-
stand why headhunters are finding it
harder to fill these roles.
Ms Symons says it is even tougher to
fill banks’ non-executive positions,
which bring many of the same problems
and risks with fewer rewards.
“For every person you ask, you will
have more people who will say they
wouldn’t do it than those who say they
would,” she says. “These jobs are no
longerthepinnacleofsomeone’scareer.”
This was underlined by Sir Philip
Hampton, the former Royal Bank of
Scotland chairman, who recently told a
headhunter that he would rather be tor-
tured than take another job at a bank.
‘These banks He went on to join the drugmaker
are going GlaxoSmithKline as its chairman.
Ms Symons says there is likely to be
through a more change at the top of European
painful banks soon. “These jobs are beyond
brutal — you are going to burn out even
process’ faster than before. I suspect you are
Jordi Canals going to see even higher turnover in
banks’ management.”

Rising costs fuel interest in

developing shared resources
Utilities
The days of easy profits
have gone and inefficiencies
in the industry are becoming
increasingly apparent,
writes Philip Stafford
Banks can sometimes be remarkably
inefficient. Few of them have tradition-
ally been as adept at sharing resources,
developing common standards and out-
sourcing their business as other indus-
tries, such as retail.
Some industry utilities have devel-
oped in the last 20 years. These include
SwapClear, the London clearing house
now controlled by the London Stock
Exchange Group, CLS, the foreign
exchange settlement service, and the
Fix software protocol for trading. Large
amounts of deal and loan processing are
completed in-house, however, in spite of
the fact that the processes used are simi-
lar to those of rivals.
As the Basel prudential capital rules
take effect and banks face restrictions
on using their own funds for trading, the
easy profits have gone and inefficiencies
in the industry are becoming more
apparent.
Many accept the need to change.
“Despite significant cost cutting and
restructuring post-crisis, most banks
still struggle to post returns that exceed
their cost of capital,” says Tim Gokey,
chief operating officer at Broadridge,
the financial consultancy, in a Septem-
ber report.
“Over the next five years, regulatory
pressures are set to grow, so banks are
increasingly looking to new and uncon-
ventional ways to regain efficiencies,
particularly within the trade life cycle.”
Broadridge estimates the industry
could save $4bn by switching to a utility
model.
Consequently, there have been a
number of ventures in which banks are
outsourcing what were once considered
critical banking activities.
TriOptima, an ICAP-owned utility
which compresses and neutralises risk
in banks’ over-the-counter derivatives
portfolios, reported a 21 per cent
increase in revenues to £35m in the six
months to September 30.
It closed out derivatives contracts
worth $87tn of gross notional outstand-
ing — a broad measure of all outstanding
Automation: saves banks money
derivative positions globally — com-
pared with $61tn in the same period a
year ago. Over the summer, 13 banks
revived plans to boost the effectiveness
of a hub for the processing of swaps and
derivatives trades. The utility aims to
resolve potential disputes on margin
required to back OTC derivatives
trades.
“By 2020, we expect to see banks sim-
plify their core operations . . . and
adopt utility models as current operat-
ing models fundamentally change,” says
John Da Gama-Rose, capital markets
partner at Deloitte.
He says utilities that cut across differ-
‘Most banks still struggle to
post returns that exceed
their cost of capital’
ent trading asset classes will emerge as
the norm. The savings, however,
threaten to be eaten up by rising costs
elsewhere.
In addition to the post-crisis rules,
banks are having to meet regulations try-
ing to combat problems emerging from a
21st century global economy, such as ter-
rorism financing, money laundering,
digitalfraudandcybersecurity.
Other third party providers see an
eager customer base as an opportunity
to create new market utilities. Inde-
pendent data providers such as Thom-
son Reuters and Markit have created
“neutral” central clearing houses that
verify identity documentation and
carry out costly “know your customer”
background checks.
Both banks and their customers have
rushed to sign up.
The Markit service, in conjunction
with Genpact, has more than 10 of the
world’s largest banks and 1,500 bank
and asset managers. The Thomson Reu-
ters KYC service has completed more
than 10,000 profile reports for financial
entities.
Another Markit service launched in
recent weeks is called “know your third
party” and is aimed at enabling banks to
ensure third party suppliers meet new
regulations.
As Lance Uggla, chief executive of
Markit, told analysts in November, ven-
dor compliance is a challenge for banks.
“Some banks have north of 50,000 ven-
dors that they need to do compliance
on,” he said.
The dizzying network effect also
pushes banks towards automation. Aite
Group, the capital markets consultancy,
has estimated that it would cost a big
global bank $400 to sign up a customer
using an automated process, going
through know your customer and other
regulatory checks.
The same bank using a mixture of
people and computers would spend
about $6,000 per client.
The cost of breaching the rules is high
— not only in monetary terms but also in
terms of reputation.
BNP Paribas was fined $8.9bn by US
authorities for breaking US rules on
sanctions; HSBC was fined $1.9bn by the
US for failures on sanctions on anti-
money laundering rules; and Barclays
was given a £72m penalty by the UK, in
part because it failed to do sufficient
background checks on very wealthy
customers.
“It is no surprise that firms are falling
foul of the regulator because there is
such a high degree of operational risk in
dealing with an increased volume of
data that must be captured for regula-
tory reporting,” says Virginie O’Shea, an
analyst at Aite Group.
“The number of data points that firms
must gather during due diligence proc-
esses has increased a significant amount
post-crisis. If you look at the incoming
barrage of regulation over the next three
years, this is only going to get worse.”
4 ★ FINANCIAL TIMES Monday 14 December 2015

The Future of Banking

Mobile money Technology 10 of the latest

developments in digital finance

addresses call Digital technology has

changed the face of banking.
“But innovation for

for wider access innovation’s sake is a waste; it

must have a genuine
customer benefit,” says Ashok
Vaswani, chief executive of
Barclays’ retail bank. Useful or

to services not, here is a round-up of the

latest developments.
1. Investment in digital banks
A number of traditional high
street lenders are taking
Apple Pay: digital money
stakes in more nimble digital
banks. BBVA in Spain, for hits the mainstream
Alternative banking Sub-Saharan Africa has seen example, has acquired a stake
in digital-only Atom Bank in range in the UK, which
the greatest penetration, says Jonathan Wheatley the UK and Simple in the US. consists of a digital wallet
Warren Mead, head of linked to one of three devices

F
or large parts of the develop-
ing world, just one issue domi-
nates discussion of the future
of banking: financial inclu-
sion. Access to financial serv-
ices is widely perceived to be a driver of
development, especially in the most
low-income countries. It is also
regarded as a source of potential
untapped earnings for banks and other
financial institutions.
But while purusing the world’s
“unbanked” may present opportunities,
it also carries risks.
There were 2bn adults in the world
without a bank account at the end of last
year, or 38 per cent of all people aged
over 15, according to the World Bank.
But progress is being made. The
number of adults without an account
had fallen from 2.5bn in 2011 while,
owing to population growth, the
number with a bank account had risen
by 700m.
While having a bank account is
almost universal in high income OECD
countries, at 94 per cent of adults, only
54 per cent of adults in developing econ-
omies have one, says the World Bank.
Financial inclusion, the Bank said in a
report this year, is “critical in reducing
poverty and achieving inclusive
economic growth”, adding: “When peo-
ple participate in the financial system,
they are better able to start and expand
businesses, invest in education, manage
risk, and absorb financial shocks.”
Reaching such people through tradi-
tional branch networks has been
difficult. Many of the developing world’s
urban poor find bank branches intimi-
dating; many of the rural poor have no
access to them and building branches
can be prohibitively costly.
With many developing economies
facing the prospect of slowing economic
growth — or even recession in, among
others, Brazil — other solutions have
been sought. The growth of mobile pay-
ment systems in sub-Saharan Africa is
often held up as an example, especially
M-pesa, operated by Safaricom, a
mobile phone network operator con-
trolled by Vodafone of the UK.
M-pesa’s growth has been extraordi-
nary. Launched in 2007, by last year it
had driven the growth of mobile money
in Kenya to the point where 58 per cent
of adults in the country had a mobile
account, according to the World Bank.
“When we started it was a real flag-
ship, and it continues to be one for what
can be achieved via the mobile chan-
nel,” says Seema Desai of GSMA, a
mobile operators’ industry association.
M-pesa was helped by Kenya’s regula-
tory environment. “One of the funda-
mental differences is that Kenyan banks
and non-banks are allowed to provide
mobilefinancialservices,”saysMsDesai.
Other countries regulate things differ-
ently. Letshego, a consumer loan and
microfinance company, operates in
seven countries in eastern and southern
Africa, with plans to add more next year.
Each country has distinct regulations
and Letshego has or is acquiring a range
of different licences, from full banking
Bypassing banks: to deposit taking and microfinance. “We
paying by mobile are working in a complex regulatory
phone in Kenya environment with different licences in
Reuters/Noor Khamis
each country, but that enables us to
focus on the very low cost provision of
services,” says Chris Low, chief execu-
tive.
Mr Low says Letshego keeps costs
down, at 29 per cent of income, by using
Reaching low-cost branches, “low-feature” offices
out to the that do not handle cash, and electronic
channels in conjunction with mobile
‘unbanked’ operators.
is critical in This lets it reach customers ignored
by traditional banks because they are
‘reducing “beyond where their appetite for risk
poverty and will take them”.
Many other mobile money and other
achieving low-cost accounts have sprung up in
inclusive Africa over the past decade, making
sub-Saharan Africa the region with the
economic greatest penetration of such services.
growth’ But taking them further and into
other parts of the world may not be easy.
As the FT has reported, M-pesa bene-
fited greatly from its monopoly position
in Kenya when building its business.
Indeed, in Latin America, several
attempts by the region’s biggest banks to
build business from a basis of low-cost
bank accounts have foundered. Recent
efforts in Brazil, for example, to offer
small loans to new customers with mini-
mal documentation ran into high rates
of loan default.
Mobile money and other alternative
forms of banking constitute “a great
opportunity” for banks in Latin Amer-
ica to reach new customers, says Alejan-
dro Garcia, head of Latin American
banks at Fitch Ratings. But doing so also
comes with risks, especially of fraud.
Technological advances have cer-
tainly helped to lower the cost of reach-
ing the “unbanked” in many parts of
the world. Whether doing so will add
significantly to banks’ earnings has yet
to be proved.
challenger banking at KPMG,
says such investments could
be a solution to fixing
problems with banks’
creaking IT.
2. Blockchain
Blockchain, the technology
predicated on a shared
database that underpins the
cryptocurrency bitcoin, is
being adapted for banking. It
could speed up settlements
and bolster security.
3. Collaboration with
marketplace lenders
Banks are teaming up with
peer-to-peer platforms, with a
recent example being Metro
Bank’s partnership with P2P
lender Zopa in the UK.
4. Digital payments
The launch of Apple Pay
heralds the move of digital
payments into the
mainstream. A number of
banks in the US and UK have
signed up to Apple Pay.
5. Video links for services
Banks are increasingly
focused on ways to provide a
digital service, including use
of video, rather than simply
concentrating on product
sales, in order to retain
customers.
6. Wearables
Wearables are the next mobile
payment frontier. Barclays
launched a bPay product
— a wristband, fob or sticker
— that can be used to pay at
more than 300,000 locations
across the UK.
7. Social media
Banks are adopting social
media, from Snapchat to
Twitter and Facebook, both
for internal use and to interact
with customers.
Royal Bank of Scotland
recently partnered with
Facebook to provide
employees with an internal
communication site.
8. Monetising data
New banks are seeking to
help customers monetise
data. Mr Mead at KPMG says
Secco Bank, set to launch
soon in the UK, is focused on
this.
9. Biometrics
RBS in the UK recently
enabled Touch ID on its
banking app as a way for
customers to more easily log
on using their fingerprint.
Barclays Wealth unveiled
voice recognition to identify
its customers.
10. Internal data teams
Traditional lenders are
starting to create in-house
specialist teams. Capital One,
for example, last year hired
Daniel Makoski from Google
for its digital design team.
Emma Dunkley

Leading institutions hope labs

will give them competitive edge
Hubs
Barclays, Deutsche Bank and
Citi are among those aiming
to attract fintech disrupters
to their innovation centres,
reports Laura Noonan
It is mid-morning and, beyond the
shadow of the City of London’s financial
skyline, an east London street is slowly
coming to life. Market sellers hang
clothes and arrange vegetables for a
day’s trading that will not be found on
any index. But next door to the local
supermarket, is Rise London where Bar-
clays is helping to tackle some of the big-
gest questions facing global finance.
Not far from Barclays’ earthy
Whitechapel incubator another leading
bank is also aiming to gain a slice of
innovation action. The City’s Heron
Tower houses the London site of Deut-
sche Bank Labs. Its boutique-hotel ele-
gance contrasts with the practicality of
another leading bank’s efforts: Citi’s on-
site innovation hub in Dublin.
While some hubs are homes to start-
ups from a broad range of industries,
their main focus is companies that are
developing fintech technologies that
most of us still think are in the realm of
science fiction (eyeball tracking any-
one?).
“Our goal . . . is to find the disrupters
and the creators and new technologies
that are out there that can fundamen-
tally help us create the future of finan-
cial services,” says Derek White, Bar-
clays’ chief design and digital officer. He
oversees the Rise franchise which has
offshoots in Manchester, New York, Tel
Aviv and Cape Town.
In London, Rise encompasses a fin-
tech “accelerator” that offers start-up
support, a free-to-use auditorium, a
shared work space for start-ups, innova-
tion units and a café.
Providing the 150-seater auditorium
earns Barclays a first look at the innova-
tion that many see as a threat to tradi-
tional banks.
Last year Barclays began inviting fin-
tech companies to “come and work with
us to create the future”, says Mr White.
The 10 most promising of the hundreds
who applied were given 110 days of
intensive support in Barclays’ fintech
accelerator, where they refined their
products. They were also introduced to
Eyeball tracking: developments are
almost in the realm of science fiction
Techstars, a start-up accelerator that
made equity investments in some of the
businesses.
The process has yielded deals
between Barclays and Market IQ, a tech-
nology that uses social media data to
predict events such as ATM power cuts,
and Dopay, a cloud-based payroll solu-
tion for the unbanked. Barclays has run
a second round in London, and in New
York, and applications are open for pro-
grammes in Cape Town and Tel Aviv.
Deutsche Bank is hoping that its fledg-
ling innovation lab will unleash similar
benefits. The bank, which is in the
throes of a large restructuring, is “at an
‘Our goal . . . is to find the
disrupters and the creators
and new technologies
that are out there’
advanced stage in establishing a true
and structured innovation function”,
according to Philip Gilligan, Deutsche’s
head of innovation, who is responsible
for the labs in London, Silicon Valley
and Berlin.
It is already working with companies
such as Callsign, which has developed a
technology that uses how you handle
your mobile phone to bypass onerous
logon requirements. Deutsche also runs
an Appathon that invites employees
from across the bank to pitch their own
ideas for apps.
Talented staff are vital for innovation
hubs. Mr Gilligan wants a 50/50 mix of
Deutsche people and newcomers with
industry experience. Why would the
best minds in technology want to work
in a cost-cutting bank? “There are
rewards beyond the monetary value,”
Mr Gilligan says.
Priorities are set by Deutsche Bank’s
new strategy, and by requests from
managers across the world. Key to the
labs’ success is the ability of Mr Gilli-
gan’s small team to gain a foothold in the
broader bank. That relationship is
important — the London innovative
lab’s dress code remains on the smart
side of smart casual to avoid alienating
the wider bank.
Measuring innovation’s value is noto-
riously difficult. In Deutsche’s case, key
performance indicators include exam-
ining 500 new “opportunities” this year,
evaluating 50 of them and adopting
about five. Ken Moore, head of Citi’s
Dublin lab, is one of a select few with
experience of how an innovation lab can
grow over time within a megabank. The
Irishman set up Citi’s first innovation
lab — and one of the first bank innova-
tion labs in the world — in 2009, with 10
people working part-time. Now there
are 70 in Dublin full-time and 330 dot-
ted across six other centres.
Along the way, they have learnt they
“can’t do 1,000 unconnected things in
an innovation lab”. “That’s one of the
mistakes we made in the past,” says Mr
Moore. Now Citi works on “portfolios”
of projects around a central theme, such
as “becoming the world’s leading digital
bank”. Using portfolios gives the labs a
simpler story to tell the rest of the bank.
The initiative’s first big success was an
award-winning app for corporate bank-
ing customers.
The team has come a long way since.
Special cameras are now used to track
how a client’s eyes roam a screen so that
apps can be designed in the most user-
friendly way possible.
Citi was not always so open about its
plans. “There is some frosting on the
w i n d ow s o f t h e i n n ov a t i o n
lab . . . because originally we were wor-
ried about people taking photos from
the outside,” says Mr Moore. Now? “The
best protection we have from others is
our ability to execute quickly.”

Monday December 14 2015
Global cities
look to
technology to
drive change
The need grows for better connected and more
efficient networks, reports Tanya Powley
A
time traveller from the
1950s visiting London
today might be surprised to
find that the fundamental
aspects of the public trans-
port system have not changed dramati-
cally.
Buses have had a design overhaul, but
they are still flagged down by passen-
gers at the side of the road. Trains con-
tinue to move along on steel rails, but
station guards wave signal paddles
instead of blowing whistles.
A big problem in modernising trans-
port systems, particularly in the devel-
oped world, is dealing with ageing infra-
structure, according to Lynne Goulding,
an analyst at Arup, the engineering
group.
Several countries are focusing on elec-
trifying rail tracks to accommodate
The Future of Transport
faster trains, including the UK,
Germany and France, but it can be diffi-
cult to modernise existing infrastruc-
ture. In the UK, attempts to electrify
some train routes have been hit by
delays and overspending.
While the perception might be one of
slow change since the 1950s, transport
experts say there has been a lot of work
behind the scenes in using technology to
improve signalling systems and road-
side infrastructure. Safety has improved
dramatically over the past 50 years.
Not all modes of transport have been
slow to alter over that time. Stephen
Glaister, a transport specialist at Impe-
rial College London and a former Trans-
port for London board member, points
to the considerable improvements
made to the car. “It’s still got four wheels
and is driven by a person, but otherwise
FT SPECIAL REPORT
www.ft.com/reports | @ftreports
it’s a completely different thing,” he Inside
notes. Its cost relative to average income
has fallen and it is much safer. Road net-
works across the world have also greatly
improved, Mr Glaister adds.
Car affordability has created prob-
Taxi wars put industry
under pressure
Legal challenges and
lems in cities, not least congestion.
Space has been taken up by cycle lanes
and roadwork and construction projects
have risen.
In central London these factors have
disgruntled drivers hit
back at cab apps
Page 2
played a part in cutting road capacity by
about 30 per cent since 1996, figures
from the city’s traffic agency show.
Experts say politicians must either act
or watch snarl-ups on London’s streets
worsen — a problem made more press-
Cyber security
Executives turn to
specialists as hackers
expose weaknesses
ing by the predicted growth in the capi-
tal’s population from 8.6m to nearer
Page 3
Hybrids under siege
The sharp fall in the oil
‘As technological change price helps boost sales
of gas-guzzling vehicles
tends to be exponential and Page 3
not linear, these things are
rapidly progressing’ Developers shake up
public transport
Travel apps help put
10m by 2030. Mr Glaister says transport
planners may have to come up with rad- passengers at the
ical solutions, such as a network of centre of rail travel
underground roads to help ease conges-
tion. Some cities have tried this, for Page 4
instance Boston in the US with its “Big
Dig” project, which cost at least 10 times Automated autos may
its original budget. Other countries, be a game changer
such as China, have chosen to go over-
ground and construct triple-deck roads.
Human fallibility makes
Most countries are working towards a crash-free future
better connected and more efficient unlikely
transport networks, using technology to Page 4
improve their infrastructure. The inter-
net is revolutionising the way in which
passengers plan their journeys, while
smart ticketing systems are helping
shave seconds off the time it takes to get
through a station. The “smart city”
Trail blazer: an all-electric, zero emission French ferry — Jean-Sebastien Evrard/Getty Continued on page 2
2 ★ FINANCIAL TIMES Monday 14 December 2015

The Future of Transport

Global cities
Beleaguered look to
technology to
industry takes drive change
aim at lower Continued from page 1
approach is a concept adopted by
policymakers around the world, in the
hope and expectation that digital tech-
nologies can be deployed to make cities
both more efficient and liveable.

fare challenge “I think technology”, says Arup’s Ms

Goulding, “will be one of the biggest
drivers of change in the transport sector.
As technological change tends to be
exponential and not linear, these things
are rapidly progressing.”
The problem is how to integrate dif-
ferent modes of transport, such as rail,
bicycle, walking and automotive, into
Taxi wars Legal challenges and disgruntled drivers one convenient, safe and sustainable
system. Some cities are already making
apply pressure to cab apps, writes Murad Ahmed inroads into recreating themselves as
places where vehicles are electric pow-

T
axi apps are causing disrup-
tion to a decades-old mar-
ket. The likes of Uber, Lyft
and Hailo, have made it eas-
ier than ever for taxi drivers
to find nearby fares. These online serv-
ices are used by thousands of eager pas-
sengers, who can call up a driver at the
touch of a smartphone screen.
Depending on what facilities are avail-
able in each country, these services are
also often cheap. Billions of dollars in
venture capital are being poured into
taxi app start ups, allowing them to
engage in price cuts in the battle to
attract passengers.
In the face of sudden and intense com-
petition, established taxi groups scream
foul play, claiming the taxi apps are
often skirting decades-old regulations
on who can be hired for fares.
But the one group essential to the
industry — the drivers — seem unsure
what to make of the maelstrom. “You
can’t go to other companies because
Uber has taken most of the business,”
says one disgruntled minicab driver in
London, who asked not to be named for
fear of repercussions. “The industry of
cabbing has turned upside down
because of Uber. Drivers were told they
would make more money and have an
easier life. But they show you one hand
and slap you with the other.”
But a French Uber driver, a young
man of Arab origins, says he loves driv-
ing for the San-Francisco- based service.
He says that at a time of high youth
unemployment, Uber created the
opportunity to make extra money from
taxi fares, in between part time jobs.
During another recent ride, a London-
based Uber driver misunderstood why I
was asking a torrent of questions about
working for the service, leading him
both to recommend driving for the taxi
app company and offering to help me
become an Uber driver.
Travis Kalanick, chief executive of
Uber, says the company is a force for
good, creating hundreds of thousands of
jobs by opening up the cabbing industry
to people who had been shut out by
monopolistic taxi incumbents.
But he also concedes it can be “quite
tricky” to find a “middle ground” that
balances the interests of drivers and
passengers, as Uber experiments with
new pricing and services. “In many
cases it’s good for one side and bad for
the other,” he says.
Mirroring legal challenges elsewhere
in the world, this year Britain’s GMB
Union, which represents thousands of
Black mood: professional drivers, sued Uber over
London taxi allegations that the ride-hailing service
drivers protest does not provide basic worker rights,
against the such as ensuring people are being paid
Uber app the minimum wage or for holiday.
Carl Court AFP/Getty Images They also accused Uber of failing to
adhere to health and safety standards,
such as making sure drivers take breaks
or work no more than a certain number
of hours. In July, Steve Garelick, branch
secretary of GMB’s professional drivers’
branch, said it had been approached “by
various [Uber] drivers who were not
happy with their lot in life”. The action is
ongoing.
Uber says: “One of the main reasons
drivers use Uber is because they love
being their own boss. As employees,
drivers would drive set shifts, earn a
fixed hourly wage, and lose the ability to
drive elsewhere, as well as the personal
flexibility they most value. The reality is
that drivers use Uber on their own
terms: they control their use of the app”.
The main issue appears to be low
fares. When the likes of Uber and Lyft
introduced heavy price cuts for passen-
gers, they protected drivers’ income,
saying the taxi app group would pick up
the difference. However, the companies
gradually began reinstating their own
share at the expense of drivers.
Mr Kalanick has argued that lower
fares lead to more frequent rides. So,
overall, drivers’ income rises. But not all
are convinced. The disgruntled London
driver claimed that he had to work
longer hours to make up the difference.
“If you’re earning £10,000 a year and
they suddenly take away 15 per cent to
give more discount, how would you
feel?” he asks. “You’re using your own
car, your own fuel, and paying your own
taxes. You work out how much a driver
is left with.”
Some believe that, in time, Uber and
other taxi app groups will have to end
their price wars. Karhoo, a new taxi
comparison app due to launch next
year, aims to provide users with access
‘If you’re to thousands of cars run by established
operators — including London’s black
earning cab drivers. The 10-month-old com-
£10,000 a pany has raised $250m, and aims to
raise more than $1bn to fund its global
year and rollout.
they take Daniel Ishag, Karhoo’s chief execu-
tive, says his app will allow the estab-
away 15 per lished taxi companies it works with to
cent, how set prices, taking a small cut from every
sale. He believes the business model will
would you work because: “[Uber] can’t subsidise
feel?’ prices forever; they have to be profita-
ble, especially if they want to IPO.”
ered and emission free.
The port city of La Rochelle in south-
western France has recently launched
zero emission electric passenger boats
for travel around its waterways and
boasts solar-powered electric bikes. In
the UK, Milton Keynes and Coventry are
trialling the government’s autodrive
programme, which will develop autono-
mous vehicle technologies and integrate
driverless vehicles into existing urban
environments.
In Asia, Singapore is expanding its
underground system, almost doubling
the size of the metro, to improve public
transport on the island. It is also consid-
ering the introduction of autonomous
vehicles trials as part of an effort to
reduce private car ownership.
Automation will play a big part in traf-
fic management systems in which driv-
erless cars, buses and lorries ease con-
gestion problems on railway networks.
“Ultimately we’ll see all of the systems
talk to each other,” says Cameron Jones,
chief commercial officer at UK-based
software company SilverRail Technolo-
gies.
“You’ll have an app that will help you
plan the most efficient journey, with
each of the modes of transport seam-
lessly interacting with each other so that

Berlin emphasises the environmentally sustainable
Case study
The German capital leads
the nation in alternative
forms of getting around,
reports Jeevan Vasagar
With a youthful population, a history of
development built on public transport
rather than cars and a reputation for
embracing the new and fashionable, it is
not surprising to find that Berlin is at the
forefront of technological change when
it comes to personal mobility.
Car-sharing has surged as Berliners
increasingly feel little need to own a per-
sonal vehicle. Meanwhile, the overall
proportion of daily trips Berliners make
by car has dropped in recent years as
cycling has grown in popularity.
Germany’s capital has more than 400
electric car-charging points and four
hydrogen refuelling stations, making it
the leading city in Germany for alterna-
tive forms of transport. A major expan-
sion of this infrastructure is under way.
And while lacking Google’s resources,
a team at Berlin’s Freie Universität has
developed its own driverless car, which
has been licensed for trials on the city’s
streets since 2011. The car recently com-
pleted a 2,400km driverless journey
through Mexico.
City authorities are determined to
build on these environmentally friendly
trends, as Berlin grows and parts of the
city become more affluent.
Berlin is Germany’s biggest city, with
a population of 3.5m. It is growing by
about 50,000 people a year — excluding
refugees — as the city’s vibrant cul-
ture and cheap living draws people
from across Germany and
Europe.
Burkhard Horn, director of
the city government’s trans-
port department, says: “It is
important that these people
travel using environmentally
sustainable transport, that is
compatible with the city — on
foot, by bicycle or with public
transport.”
Sustainability:
Burkhard Horn
There is potential for replacing longer
distance car trips with public transport,
Mr Horn says. The challenge is expand-
ing and modernising the transport
authority’s fleet, as well as building new
commuter rail lines.
The geography of Berlin is suited to
public transport rather than private
cars. With its broad central boulevards,
the city was originally traversed on foot
or, for its wealthier inhabitants, by
horse-drawn coach. More recently, the
city grew outwards along the rail net-
work, with residential and
industrial areas congre-
gating round the
newly developed
underground sta-
tions.
From genteel
Charlottenburg to
working class Pren-
zlauer Berg in the
east, Berlin was
organised around dis-
tricts, reducing the
need for cross-city com-
muting.
Berlin’s history
also plays a
role. Its cold war division and the physi-
cal isolation of West Berlin within the
communist state meant that the devel-
opment of a commuter belt was delayed
until after reunification.
Mr Horn says: “After reunification in
1989 there was a significant rise in
motorisation and car traffic in Berlin,
with demonstrably negative conse-
quences for the environment. Through
a shift in the transport strategy, we have
succeeded, over the last 10-15 years, in
stopping this and turning it around.”
The city has pursued a combined
planning and transport strategy, while
investing in public transport and pro-
moting combinations of cycling and
trains.
Its size and population density make
Berlin ideal for car-sharing. Details
from BMW’s car-sharing service Drive-
Now indicate that 165,000 Berliners
have signed up to the programme.
“The number of new registrations in
Berlin runs at around 4,000-5,000 per
month,” says Aurika Nauman press
officer for DriveNow. “That’s around a
third of the total DriveNow registrations
in Germany.” The car-sharing scheme
collaborates with Berlin’s public trans-
port authority, offering a special rate for
public transport season ticket holders
and integrating its vehicles into the
transport authority’s mobile app.
Ms Nauman says: “Each DriveNow
vehicle has replaced three private cars.
That has freed parking space, and
reduced the amount of time spent look-
ing for a space. Parking pressure has
been reduced and so have emissions.”
One notable transport flop has been
the ride-sharing service, Uber. Its low-
cost ride sharing service UberPop has
been banned by city authorities, who
cited safety concerns and the threat to
licensed drivers from unregulated com-
petition. The company endures as a
taxi-hailing service in competition with
rivals such as Daimler’s mytaxi.
In the more distant future, the auton-
omous car may shake up the city’s trans-
port options. But city authorities say it is
too early to forecast the impact of such
technology on transport choices.
While self-driving cars may reduce
accidents, they will take up as much
space as human-driven cars.
“Public space on our streets is too pre-
cious to devote it to traffic,” Mr Horn
says.
30% 200,000
The amount road
capacity in central
London has been
cut since 1996
Number of taxi
journeys sold by
Sweden’s national
rail carrier
there isn’t a point of anxiety across that
trip,” Mr Jones adds.
He points to SJ, Sweden’s government-
owned passenger train operator, which
works with taxi companies to enable
passengers to book a full rail and cab
journey in one go. The taxi company
uses live data from the rail carrier to
plan the pick-up from the station,
putting an end to long queues at the taxi
rank.
“Without being heavily marketed SJ
sold almost 200,000 taxi journeys in
2014, which would be like selling almost
2m taxi journeys in the UK when con-
sidering relative market sizes,” says Mr
Jones.
Ms Goulding believes technology will
enable solutions for many transport
problems, but concedes that the pace of
development creates a problem in itself.
“There is a real challenge that by the
time it is built the technology is already
obsolete,” she says.
As she adds: “At the moment every-
one is looking at how to put WiFi on
trains, but there’s already a technology
called LiFi that is meant to be a much
faster way of doing WiFi.”

Planes, trains and automobiles Contributors

Tanya Powley
Air transportation is booming, ... while India and China ... and private car usage declines ... as well as ... while the public is generally Transport correspondent
particularly in Asia ... dominate the global rail in some developed countries... road accidents ... positive about self-driving cars Robert Wright
Million air passengers carried
passenger transport ... Passenger-kilometres by private car Road injury accidents % change, % of respondents likely or very likely to US industry correspondent
Rail in million passenger-km* (1991=100) 2000-13 try self-driving vehicles when available, Andy Sharman
3000 November 2015 Motor industry correspondent
0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 135 -40 -20 0 20 40 60 80 100 0 20 40 60 80 Jeevan Vasagar
South Asia
Berlin correspondent
Middle East & North Africa 2500 India Australia Turkey Murad Ahmed
130 India
Latin America & Caribbean Russia European technology correspondent
China Hannah Kuchler
Europe & central Asia Germany India China
2000 125 San Francisco correspondent
North America Japan
Spain
East Asia & Pacific France Aban Contractor
Russia 120 Belgium
1500 Rohit Jaggi
Germany Canada US Commissioning editors
115 US Steven Bird
France Sweden Designer
1000 Germany UK
UK Emily Lewis
Korea 1990 110 Korea Picture editor
Germany
2013 or 2014 Chris Campbell
500 UK Italy
105 Graphic artist
Japan Netherlands Valentina Romei
Ukraine US
UK Statistics journalist
0 100 Japan
Italy France For advertising details, contact
1974 80 90 2000 10 14 1991 95 2000 05 12
Ian Edwards on +44 (0)20 7873 3272 or
Level of executives’ satisfaction with infrastructures varies greatly across countries ian.edwards@ft.com or
Global ranking, 2015 Liam Sweeney on +44 (0)20 7873 4148
or liam.sweeney@ft.com.
Hong Kong 1 Germany 7 US 12 Italy 26 Russia 39 Turkey 51 India 87 Chad 144
Most satisfied Least satisfied All editorial content in this report is
Japan 2 UK 10 S. Korea 14 produced by the FT. Our advertisers have
no influence over or prior sight of the
FT graphic Sources: World Bank; OECD; World Economic Forum; World Conference Board * Number of passengers transported by rail times kilometers traveled
articles.
Monday 14 December 2015 ★ FINANCIAL TIMES 3

The Future of Transport

Hackers in Urban planners learn

‘white hats’ join to pedal harder
city parks a century ago,” Mr White

effort to thwart Bicycles

Rise in rider numbers has
led city policymakers to
says. “They’re something you have to
have if you want to be a city where peo-
ple want to be, where people want to
raise a family.”

the bad guys invest more and plan better,

reports Robert Wright
The recommended route for a cyclist
heading north from Vauxhall, in central
London, across the river Thames used
to be confusing and intimidating. Offi-
cial maps directed riders first on to a
series of narrow paths that wound
round pavements by Vauxhall’s busy
streets. Then the cyclist was pitched out
on to a bus lane to ride amid six lanes of
dense traffic on Vauxhall Bridge itself.
But since November, the experience
has been transformed. A well-built,
Cyber security Old and creaky systems leave travel mostly wide, two-way cycle track now
runs through the maze of junctions on
networks vulnerable to attack, says Hannah Kuchler WiFi dilemma: the internet is linked to the systems controlling flying — Alamy the south side of the river before leading
riders on to a wide path segregated from
In London, the efforts to build pro-
tected lanes come after more than a dec-
ade of steady growth in usage has made
the bicycle a significant part of the
transport mix. Lilli Matson, head of
strategy and planning for Transport for
London (TfL), the London mayor’s
transport agency, points out that more
than 600,000 daily trips are made by
bicycle in London, or about a fifth of the
number of journeys made each day on
the London Underground.
In many cities, a combination of
opposition to a shift to cycling and reluc-
tance to encourage it has stood in the
way. Although there was significant
growth in cycling in New York while Jan-
ette Sadik-Khan was transport commis-
sioner from 2007 to 2013, official census
figures show only about 1 per cent of

C
ommuters in the Israeli port
city of Haifa fumed during a
particularly tedious traffic
jam two years ago, never
guessing that the logjam was
caused not by an accident or some other
relatively customary event — but
reportedly by cyber attack.
It shut the city’s Carmel tunnel for
eight hours, with the Associated Press
later reporting a cyber attack, although
the authorities never confirmed this. A
hacker used a “Trojan horse” — a mali-
cious computer programme — to shut
down the security cameras monitoring
the tunnel, the report said.
As transport networks — from cars to
planes to trains — connect to the inter-
net in hundreds of ways, hackers have
found ways to disrupt the arteries of
major cities. A single flaw in one device
connected to a complex network can
have major consequences in the trans-
port industry. With vehicles having the
ability to communicate remotely and
supply chains being so extensive, it can
be hard to monitor the security of every
component.
Tim Best, cyber security director at
Ernst & Young, says it is this “network of
networks”, often made up of old and
creaky systems, that makes transport so
open to attack.
Automakers often rely on external
software providers or third party host-
ing organisations, which they cannot
easily monitor. The option of WiFi on
planes, meanwhile, has created prob-
lems when the passenger internet is
linked to the systems controlling flying.
Computer security experts — so called
“white hat” hackers — who look for dig-
ital system weaknesses, have made con-
siderable impact in the transport field
this year. Vulnerabilities in the Jeep
Cherokee reported in June at a Las Vegas
hackers conference led Fiat Chrysler to
recall 1.4m vehicles. One security
researcher was questioned by the FBI in
April after taking a United Airlines
flight, during which he claimed in a
tweet that he had hacked into its com-
puter system. United has since intro-
duced a programme of awarding air
miles to hackers who inform it of vul-
nerabilities.
Cesar Cerrudo, chief technology
officer at IOActive, a security research
company which discovered ways
to hack satellite communications
equipments on planes, says companies
tend to drag their feet on security until
they are in “water to the neck”.
Mr Cerrudo adds: “One problem with
a car system is that it is already designed
with this weak architecture and design
is very difficult to change. If you change
the design, you change all the compo-
nents, how everything interacts and
works.”
Automakers need to build security in
from the beginning, rather than adding
it on top, but that will probably take
time, Mr Cerrudo says. “The technology
we are using today was built three years
ago, so if they start investing hard in
security now, we will probably see the
results in a couple of years.”
Philip Lacombe, vice-president for
information systems and security at
Parsons, an infrastructure company,
said there had been a “dramatic change”
in every part of the industry. From met-
ropolitan transport agencies to airline
operators and carmakers, it is paying
more attention to cyber security.
As boardrooms get worried about ful-
filling their responsibilities, they are
putting more contracts for cyber secu-
rity services out to tender and hiring
more specialists in the field, Mr
Lacombe says.
Mr Lacombe believes co-operation
between the public and private sectors
is essential. There are already concerns
that cars could be used to spread viruses
into systems managed by government,
for example, when cars are checked by
emissions control systems. Soon,
publicly owned traffic lights will “con-
verse”, as it were, with private cars.
In the private sector, groups such as
Intel’s automotive security review
board are conducting testing and creat-
ing best practices for the industry. A
recent white paper warned about risks
ranging from “ransomware” — mali-
cious software that holds cars to ransom
— to petrol stations being used to infect
vehicles with computer viruses.
Regulators are paying attention to the
problem. In Germany, for example, the
country’s IT security act applies prima-
rily to critical infrastructure, including
that for transport.
It outlines “state of the art technical
and organisational measures” to
improve infrastructure and to encour-
age companies to report security inci-
dents anonymously.
traffic on the bridge.
The work on the route — part of what
will soon become a network of protected
bike lanes, or cycle “superhighways”,
around the UK capital — illustrates Lon-
don’s determination to have bicycles
make considerably more than twice
their current level of trips in the city by
2026. It is an aspiration similar to those
of scores of other cities around the
developed world — including such con-
ventionally car-oriented metropolitan
areas as Los Angeles and Houston in
the US.
Many city leaders are keen to encour-
age cycling because bicycles make far
more efficient use of scarce road space
than private motor vehicles. Encourag-
ing cycling is a far cheaper means of
expanding transport capacity than
building new roads or rail lines. Increas-
ingly, too, the public demands it.
Paul Steely White, executive director
of Transportation Alternatives, which
campaigns for better walking and
cycling access in New York, says resi-
dents of any world-class city now
demand protected bike lanes of the kind
that now crosses Vauxhall Bridge.
“Protected bike lanes are today like
commuting trips are by bike — against
about 4 per cent in London.
Mr White says it has become clear in
recent years in New York that there is —
although many long doubted it — a true
demand to move round the city by bicy-
cle. “The real limiting factor is the
Department of Transportation’s ability
to deliver projects,” he says. “They
aren’t keeping up with demand.”
At the heart of the rising demand for
urban cycling is a reversal over the last
three decades of the earlier confidence
that private motor vehicles could pro-
vide effective, flexible transport in big
cities.
Many urban motorways have turned
out to generate so much new traffic that
they have been congested almost since
opening.
Tom Bogdanowicz, senior policy and
development officer for the London
Cycling Campaign, makes reference to
TfL’s commitment in its business plan
that come 2026 Londoners will be mak-
ing 1.5m cycling journeys each day. That
would commit TfL to providing equiva-
lent capacity on other means of public
transport, if cycling growth fell short of
target.

Hybrid technology still

draws a company crowd
Oil price
The fall in fuel prices has
raised sales of pick-up trucks
and SUVs, but fuel-efficient
autos are still sought after,
reports Robert Wright
On March 31, on a cold day in New
York’s west midtown, Duncan Aldred,
head of General Motors’ GMC brand,
outlined a plan that would have seemed
unthinkable as little as a year previ-
ously. Mr Aldred announced that GM
planned to boost the US market share of
GMC — which produces only premium-
quality sports utility vehicles and
pick-up trucks — from 3 per cent to 5 per
cent over the coming 10 years.
The brand has outstripped the growth
of every other GM brand in the US over
the year, posting growth of 12.5 per cent
for the year to the end of October,
against a 5.3 per cent average for the
company as a whole.
GMC is one of the most obvious bene-
ficiaries of a series of changes across
transport markets that have followed
the sharp fall in the price of oil from a
peak of $112 a barrel of Brent crude in
June 2014 to about $45 at the end of
November this year.
The fall has revived sales of sports
utility vehicles and pick-up trucks,
raised speculation that airlines might
cool on orders for more fuel-efficient
aircraft and led to rumours that ship-
ping lines might end speed reductions
brought in to save fuel when prices were
high.
The US auto market — where the rela-
tively low taxes on fuel mean that
changes in the underlying oil price cre-
ate especially high volatility in pump
prices — has demonstrated some of the
most dramatic changes.
According to Michael Sivak and Bran-
don Schoettle of the University of Michi-
gan’s Sustainable Worldwide Transpor-
tation project, the average fuel economy
of new vehicles sold in the US has
slipped by 0.8 miles per US gallon —
3 per cent — from a peak of 25.8 mpg
reached in August 2014, shortly after
fuel prices started falling. The decline
reflects a jump over the same period
in the market share of three types of
relatively fuel-hungry vehicles —
compact SUVs, whose market share has
Fuel change: Ford’s F150 hybrid
risen 2.9 percentage points to 29.6 per
cent, pick-up trucks, which are up 0.6 of
a point to 14 per cent and large SUVs, up
0.1 points to 7.1 per cent.
Mr Aldred insisted, after announcing
the plans for GMC’s growth, that the
company could succeed even if recent
fuel price declines were reversed.
“Really the GMC success story is . . . five
successive years of growth,” he told
reporters after the announcement.
However, there is little doubt the
unexpected oil price fall has produced
big changes in auto markets that were,
after the economic crisis and fuel-price
spike, expected to shift towards smaller,
more fuel-efficient vehicles and new,
less oil-hungry propulsion systems.
‘It’s hard to plan a product
portfolio on gas prices’
Mark Reuss
Bill Fay, head of the core Toyota brand
in the US for Japan’s Toyota Corpora-
tion, insists that his company — the pio-
neer in fuel-efficient hybrid technology
with the Toyota Prius — is continuing to
invest in more fuel-efficient technology.
But he adds that the company is build-
ing many more of its RAV4 and High-
lander SUVs than previously and as
many pick-up trucks as it possibly can.
“I do think every manufacturer is
working toward making adjustments in
their products and production to meet
the current consumer demand,” he says.
Yet, while consumer sentiment has
been quick to change in response to the
oil price change, the latest versions of
Ford’s F150 pick-up truck, the US’s best-
selling vehicle, show that companies’
reaction to the change continues to be
far more cautious. Ford brought a revo-
lutionary, aluminium-bodied version of
the truck — 13 per cent lighter than its
predecessor — to the market late in
2014, just as the oil price plunged.
Ford’s move illustrates how, while
manufacturers are adjusting their
launch schedules to reflect changing
consumer demand, many decisions
about products just coming to market
were made while prices were still high.
Companies are also cautious about
assuming that oil prices — which have
fallen unexpectedly — will not be sub-
ject to a rapid, unforeseen increase.
Caution about the duration of the oil
price fall may be one reason why air-
lines are mainly currently sticking by
the vast orders for new, more fuel-effi-
cient aircraft placed in recent years —
although most are holding off ordering
new aircraft. Ship owners are mostly
continuing the practice introduced dur-
ing the oil price spike of sailing ships far
more slowly to save fuel — although
crude oil tankers, for which rates are
high, are starting to run faster.
Mark Reuss, head of product develop-
ment for General Motors, says there is a
mismatch between long-term, capital-
intensive product development times-
cales and fast-changing fuel costs. “It’s
hard to plan a product portfolio on gas
prices,” he says.
The challenge for automakers and
builders of aircraft, ships and trains,
meanwhile, is that oil prices are only a
part of what influences their products’
design. There are also regulatory pres-
sures, including, in the US, the require-
ment that automakers more than dou-
ble their new vehicles’ average fuel effi-
ciency between 2012 and the 2025
model year, which goes on sale in 2024.
For example, under state regulations,
automakers selling vehicles in Califor-
nia are effectively required to offer
some plug-in hybrid vehicles — those
with a normal engine but which nor-
mally run on electric power — or bat-
tery-electric vehicles.
Mr Reuss says GM remains “deeply
committed” to such vehicles — includ-
ing the Chevrolet Bolt, an electric vehi-
cle that he and others hope will trans-
form perceptions of the technology,
whatever future oil price movements.
4 ★ FINANCIAL TIMES Monday 14 December 2015

The Future of Transport

Developers help shake up public transport

Travel apps Technology to promote and spread. For example,
getting real innovation in ticketing has
puts the passenger at been hard, so passengers are stuck with
the centre of rail travel, outmoded tickets and fares structures,”
says Stephen Joseph of Campaign for
reports Tanya Powley Better Transport.
However, recognising that technology
delays and patchy WiFi on the network.
At the first ‘Hack the Rails’ event
in March, the winner was Reroo, an
app that helps customers find the
cheapest alternative train routes.
Apps have already played a big part in
improving how commuters plan their
Innovative:
smartphone
watches and an app to its staff to give
them targeted information, including
ticketing. Journeys are captured by the
customer’s multi-pass app and e-wallet
ticketing and data on train delays. which synchronises with the cloud,
reliable WiFi
are important
“We saw that people were using their
own phones looking at apps to get infor-
where the best-priced ticket is identified
and charged. Trains are equipped with
iStock mation that we weren’t providing. We iBeacon sensors to see when a multi-
realised we needed to give information pass holder boards and departs a train.

I
magine being able to know which
carriage of a train to get on, in order
to make sure you get a seat and can
rest your weary legs after a long day
at work. This is just one of the inno-
vations that train companies are look-
ing at as the industry turns to technol-
ogy to improve passenger journeys.
The UK’s rail industry has historically
been slow to innovate compared with its
peers around the world and other trans-
port sectors, particularly when it comes
to using new technologies to improve
the customer experience of travel.
Part of the problem is due to the way
the rail system is operated in the UK,
with short-term franchises to run routes
being awarded by the government,
which some believe has discouraged
investment in technology.
“The fragmented nature of Britain’s
rail industry makes innovation difficult
has the potential to improve train jour-
neys, the government has shifted inno-
vation up its priority list to become an
essential part of what companies must
include in bids to win rail franchises.
Smart ticketing and reliable WiFi on
board trains are two examples of tech-
nology being rolled out over the next
few years.
Cameron Jones, chief commercial
officer at SilverRail, believes train com-
panies are finally understanding the
need for change. “A number of carriers
are working hard on initiatives to try
and drive that innovation into franchise
renewals as they get rolled out, and are
really putting the customer at the centre
of their thinking,” he says.
This year the industry hosted two so-
called hackathons, where software
developers around the world were chal-
lenged to help tackle overcrowding,
journey. Both Network Rail and Trans-
port for London, the UK capital’s trans-
port authority, have opened their data
banks in the hope developers will con-
jure up ever more useful technology to
take the uncertainty out of travel.
Citymapper has been one of the big
app successes, allowing Londoners to
plan their journey in the quickest possi-
ble route across several different modes
of transport. However, Mr Jones says
there is still room for improvement with
journey planning apps, such as being
able to plan a route and buy tickets at
the same time.
Apps are also becoming a focus for
train operators looking to make sure
that their staff have the most up to date
information to give to customers. Lon-
don Overground Rail Operations
(LOROL), which runs part of the city’s
local train network, has rolled out smart
as quickly as possible to them,” says
David Wornham, customer services
director at LOROL.
Some train companies are exploring
how to use GPS co-ordinates and local
positioning technology to work out
which carriages are full to help improve
passengers’ journeys.
Mr Jones says rail carriers could use
GPS to know the location of travellers,
plus closed circuit TV monitoring and
carriage weight sensors to suggest which
is the best carriage to get a seat. He notes
that the Swiss Federal Railways are
using GPS technology to identify a cus-
tomer’s train usage, while Hitachi in
Japan uses technologies that include sta-
tion CCTV and train carriage weight.
Others are looking at improving
ticketing systems. A multi-pass
is now on trial on the Cambridge-Lon-
don route in the form of account-based
Moves such as these will one day
help create more efficient intermodal
transport systems. A project backed by
the European Commission, called “All
Ways Travelling”, aims to create a tick-
eting system that would allow passen-
gers to book one ticket for air, rail and
‘We saw that urban transport across Europe. This
people were could put an end to the days of relying
on layers of paper tickets to get you, for
using their example, from your home in London to
own phones Barcelona for a weekend away.
“It is surprisingly difficult to create
looking at such a system because there are so
apps to get many different operators and systems
in place, says Lynne Goulding of Arup,
information the engineering consultancy. “But it is
that we definitely one of the main advantages of
technology to be able to create a truly
weren’t intermodal system that allows people to
providing’ have tickets valid for buses, trains and
bikes.”

Self-drive trucks Automated autos may be a game

bring new era
for hauliers
Commercial
The first automated vehicle
has been licensed, but
will it take off, asks
Andy Sharman
The driverless vehicle debate revolves
primarily around autonomous cars,
piloted by top tech companies such as
Google and Tesla. But what about driv-
erless trucks?
Truckmakers and logistics companies
are salivating at the potential gains to be
had by introducing automation into
road-going freight transport.
“Maybe it’s not as eye-catching as a
person reading his newspaper behind
the wheel of a passenger car,” says Nik-
las Gustafsson, chief sustainability
officer at Volvo Group, the Swedish
truckmaker.
“But in the trucks business . . . the
reason for automation is maybe not so
much for the driver. It’s more about
trucks in platoons saving a lot of fuel.”
Fuel consumption represents about a
third of the running costs for road hauli-
ers. Driverless heavy duty trucks offer
the potential for “platooning”, whereby
trucks travel in convoy at very close dis-
tances behind one another. That could
mean a saving of as much as 20 per cent
on fuel costs thanks to aerodynamics,
says Mr Gustafsson.
Driverless trucks have so far been suc-
cessfully employed in specific areas —
for example around mines or in con-
tainer ports.
Road-going trucks are already bene-
fiting from semi-autonomous safety
features. For example, all new trucks
sold in Europe since November must by
law be fitted with autonomous emer-
gency braking. Other features, such as
MAN’s lane guard system, keep drivers
within their lanes and warn truckers if
they are veering off course.
Several truckmakers, including
Volvo, MAN and Scania, offer advanced
intelligent gearboxes that use GPS to
spot when a hill is approaching and help
drivers know when to accelerate and
when to coast to limit fuel consumption.
Further moves are being made
towards full automation. Daimler of
Germany this year revealed the first
self-driving truck to be licensed for
commercial use. Trials of platooning are
also set to take place in the Netherlands
early next year.
The rewards go beyond fuel consump-
tion. Autonomous commercial vehicles
would, for instance, be better at main-
taining the concentration that can fail
human truckers on long-haul and
routine journeys, while avoiding
fatigue.
“The system never gets tired,” Wolf-
gang Bernhard told the FT this year
speaking at the launch of its Freightliner
truck. “It never gets distracted. It’s
always at 100 per cent.”
Some say it would be possible to desig-
nate lanes on long highways to autono-
mous vehicles — effectively moving
road transport into the realms of com-
puter-assisted transport employed in
the air and on the rails.
“If there were dedicated lanes on the
‘The system never gets
tired [or] distracted. It’s
always at 100 per cent’
roads, this automated technology would
be introduced even faster,” says Mr Gus-
tafsson.
But, as with driverless cars, regulation
needs to be resolved before autonomous
trucks head on to the highway.
Platooning, for instance, is techni-
cally possible using radar-based adap-
tive cruise control — a technology that
effectively tracks the car in front.
But in countries such as Germany, leg-
islation says that trucks have to keep a
safe distance of 50m from the lorry in
Saving fuel: Niklas Gustafsson, Volvo
front — and that is too great a gap to
achieve aerodynamic gains.
The regulation issue is more acute for
trucks, analysts say, since they tend to
drive long distances across national bor-
ders and between jurisdictions.
As such, Frost & Sullivan, the consul-
tancy, believes that while autonomous
highway driving in passenger cars is due
to become mainstream by 2020, driver-
less trucks will not be introduced for
platooning until closer to 2022.
There is also the question of business
models. “In a platooning train, the first
truck and the last truck will carry the
load,” in terms of air resistance, says Mr
Gustafsson. “So you need to find a busi-
ness model for sharing the costs for the
first and last truck.”
Truckmakers also say hauliers will be
reluctant to truly embrace autonomous
commercial vehicles until the trucker is
able to fully disengage from driving in
transit and perform tasks, such as
processing cargo.
“[Until then], this is no business case
for any customer,” says Manuel
Hiermeyer at Volkswagen Truck & Bus,
the holding company for MAN and
Scania. “When the driver is still behind
the wheel, he is not able to take on other
duties.
“Only in the next step, where a driver
is not required during a defined use —
such as the highway — then there is a
business case.”
But that in turn raises the question as
to whether truckers will want to carry
out functions other than driving. “Per-
sonally, I do not see that they want to do
logistics with an iPad,” says Mr
Hiermeyer.
changer for health and safety
Autonomous vehicles
Human fallibility means a
crash-free future is unlikely,
writes Andy Sharman
Road safety statistics make for grim
reading. Almost 1.3m individuals die in
traffic accidents worldwide each year,
and up to 50m more suffer non-fatal
injuries, according to figures from the
World Health Organisation.
The National Highway Traffic Safety
Administration, the US transport regu-
lator, says the economic cost of the
33,000 or so crashes in the country each
year is almost $250bn, whether in lost
productivity, legal and court costs, con-
gestion or emergency services.
But much of this could be eliminated
if automakers and tech companies have
their way: by taking away control from
the people who cause more than 90 per
cent of road accidents — human drivers.
Self-driving cars are hailed as a game-
changer for health and safety on the
roads, with their potential to dramati-
cally reduce accidents. “One of the
advantages of autonomous vehi-
cles . . . is increased situation aware-
ness,” says Randy Visintainer, director
of autonomous vehicles at Ford. “You
have 360-degree awareness between
your lidar [remote sensing technology],
radar and cameras versus the [human]
driver, who can realistically only look in
one direction at a time.”
Although highly automated cars are
unlikely to be seen outside trial settings
until the end of the decade, the incre-
mental strides being made towards that
point are already bringing safety bene-
fits. Advanced driver assistance systems
(Adas) are helping to reduce accidents.
For instance, automatic emergency
braking (AEB), which uses radar
camera-based technology that
automatically brakes to avoid
stationary obstacles at low
speeds, can cut rear-end colli-
sions by 38 per cent, according
to research by Thatcham, the
vehicle safety experts. The
same technology was found to
cut injuries by a third. Only a small frac-
tion of new cars sold come with AEB.
But this year 10 carmakers pledged to fit
the technology — considered the most
important safety development since the
seatbelt — as standard in all new mod-
els. Yet despite these advances, manu-
facturers and researchers warn that
moving beyond basic Adas features
towards full automation is riddled with
complications.
Fully driverless cars, for example, will
have to interact with conventional vehi-
cles and fallible human drivers for some
time. That is proving to be a considera-
ble problem. A recent report by the Uni-
versity of Michigan’s Transport
Research Institute found that self-driv-
ing cars had a higher crash rate per mil-
lion miles travelled than conventional
vehicles. But the self-driving cars
caused none of the accidents recorded.
Similarly, cars equipped by Google,
the tech company that is seen as the
leader in driverless car research, have
been involved in a dozen or so accidents,
but largely as a result of being rear-
ended by distracted human drivers.
“We’re still trying to understand how
autonomous cars interact in a com-
pletely autonomous environment as
well as how they interact with normal
drivers,” says Mr Visintainer. “We still
envision that these cars will have to
interact with human drivers.”
Further complicating the picture,
manufacturers from Google to Tesla to
Ford are each at different stages of
progress with their technologies, and
approaching the challenge in different
ways. Ford, for instance, is adding Adas
features to achieve a high level of auto-
mation, like many automakers keen to
build market-ready tech that can boost
revenues. Ford is also running a sepa-
rate project to build a Google-style, fully
driverless car.
All of this means that there will proba-
bly be grades of automated car, further
increasing complexity on the roads and
presenting a difficult transport infra-
structure challenge to governments and
regulators. Volvo, one of the leaders in
autonomous driving, says it is also con-
cerned that, once automation has
reached a certain level, drivers will be so
unused to intervening that it becomes
unsafe to ask them to take back control.
“We make this [technology] better
and better, we add functionality — we
come to a point where the driver almost
never has to intervene,” says Erik Coe-
lingh, senior technical leader for safety
and driver support technologies at the
Swedish automaker.
It takes about five to 10 seconds for a
driver to fully engage with his surround-
ings after having been “out of the loop”,
focusing on a task other than driving.
“The intervention of the driver is
almost never required. If it happens
only once every other day, once every
week, I would be really concerned the
driver wasn’t ready to take over when
needed,” says Mr Coelingh.
That means that manufacturers add-
ing incremental pieces of safety kit will
at some stage have to make the leap
beyond this problematic grey zone and
create cars capable of coping with all
traffic situations and weather.
Even if manufacturers reach the fully
driverless nirvana, the prospect of
a totally crash-free future seems
unlikely.
“There will be the opportunity for
automation to reduce greatly the
number of collisions we see on the roads
— but not all of them,” says Nick Reed,
senior academy fellow at the UK’s
Transport Research Laboratory.
“There’ll still be the pedestrian that
walks out at entirely the wrong
moment and the laws of physics dic-
tate that at some point that kind
of crash will be unavoidable.”
Tech savvy: Google is
considered the leader in
driverless car research