MONDAY 11 JANUARY 2016
Saudi’s oil offering
Why investors should think
twice — JONATHAN FORD, PAGE 16
HK protest
over missing
booksellers
Thousands of protesters, including a
participant tied with red rope and with
tape over his mouth, gathered in Hong
Kong yesterday to demand the release
of five booksellers they believe have
been detained by Chinese security
forces and taken to mainland China.
The semi-autonomous territory has
been shaken by the disappearance of
two owners and three staff from Cause-
way Bay Books, and by allegations that
they were taken by mainland security
officers cracking down on a thriving
trade in books about everything from
corruption in today’s Communist party
to the sexual proclivities of past leaders.
Activists fear that the incident is the lat-
est in a list of threats to autonomy.
Analysis page 2
Cameron aims to offer Britons
in-out vote on EU this summer
3 Premier confident of February deal 3 Survey casts doubt on business hostility to exit
JOHN MCDERMOTT
AND SARAH GORDON — LONDON
David Cameron is confident he can
reach a deal on the UK’s terms of mem-
bership in the EU next month, paving
the way for a vote this summer on
whether Britain will sever its four-
decade relationship with the bloc.
The British prime minister said there
was a “massive prize for Britain” if it
could renegotiate membership, adding
that he felt the “best answer” was for the
UK to remain part of a reformed EU.
His comments came as a survey
revealed that the majority of leaders at
Britain’s biggest companies said leaving
would not damage their prospects, sug-
gesting the impact of a “Brexit” could be
less negative for business than In cam-
paigners have suggested.
Apple streaming service
on song with 10m sign-ups
Report i PAGE 15
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WORLD BUSINESS NEWSPAPER ASIA
The power of markets No joke
Governments ignore volatility at their The tragic demise of the office
peril — LAWRENCE SUMMERS, PAGE 9 prank — LUCY KELLAWAY, PAGE 12
Briefing
i Beijing seeks calm before trade resumes
China’s foreign exchange regulator has declared the
financial system “largely stable and healthy” in a
bid to reassure investors braced for a resumption of
last week’s chaos.— PAGE 2; LAWRENCE SUMMERS, PAGE 9
i Catalan deal raises pressure in Madrid
The Catalan parliament was last night due to back a
new president in a last-minute deal that is set to
boost the independence push and raise pressure in
Madrid to end Spain’s electoral deadlock.— PAGE 4
i Bush puts faith in the human touch
Former Florida governor Jeb Bush, once
the frontrunner for the Republican
nomination, has turned to town hall
meetings and handshakes in New
Hampshire to claw back lost
ground.— PAGE 3; EDWARD LUCE, PAGE 9
i Unease over Saudi Aramco listing plan
Senior figures in the Saudi Arabian oil industry
have signalled widespread unease over the nascent
plans for a listing and their hasty communication to
Jerome Favre/EPA
the market.— PAGE 4; JONATHAN FORD, PAGE 16
i Hedge fund investors plan retreat
An influential annual report on the industry has
found that investors intend to cut their exposure
this year, dismaying managers hoping that wobbly
markets would have encouraged interest.— PAGE 15
i Boost for gas guzzlers in Detroit
Fuel-hungry cars have been boosted by low fuel
prices and the latest models will be on display as the
North American International Auto Show opens in
Detroit, alongside greener, electric vehicles.— PAGE 18
i Alcoa blow to kick off US results season
The aluminium group takes its traditional place
leading the US reporting season today, with its
earnings expected to show the impact of the decline
While most of the British business Asked by the BBC whether he could A majority UK for four years. Some member states in the price of aluminium.— CORPORATE DIARY, PAGE 22
leaders interviewed in annual research conclude a deal at the European Council have suggested this would be illegal and
by Ipsos Mori in conjunction with the FT meeting in Brussels next month, open- of leaders at discriminatory. Datawatch
said walking away from the bloc would ing up the possibility of a summer vote, Britain’s The prime minister said yesterday
be negative for the UK economy as a Mr Cameron said: “I would like to see a that his proposal remained “on the table
whole, 61 per cent thought their own deal in February and a referendum that biggest until I see something that is equally
operations would not suffer. will follow.” companies powerful and meaningful”. Change in banks’ bad loans The number of
Many of the chairmen and chief exec- Opinion polls still suggest British vot- Mr Cameron said the government was Impaired loans in € terms bad loans in the
utives from more than 100 big British ers will opt to remain in the EU, with the said leaving “not going to be neutral” on whether the (% change 2012-14)
-20 0 20 40 60 80 100
UK, France and
Germany fell from
companies — nearly two-thirds of which average of the six latest polls revealing would not UK should stay in or leave the EU. After Netherlands 2012 to 2014, but
have operations on the continent — also that 55 per cent would vote to stay. the renegotiation concluded, the cabi- Portugal
said they wanted to unravel political ties The biggest stumbling blocks for Mr hurt their net would decide on a formal position Greece
Spain
about doubled in
the Netherlands
between the UK and Europe and return Cameron over renegotiating the terms prospects and reach a “clear recommendation”. Italy and Portugal. It
to membership of a pure trading bloc. of EU membership are social security But he reiterated that Eurosceptic Austria
Belgium rose in Greece and
More than half of the leaders said the benefits and freedom of movement. ministers would be able to campaign Denmark Spain, which had
greatest attraction of EU membership In his letter last year to Donald Tusk, against that position after recently say- Ireland the fourth and
France
was recruiting staff from Europe with- president of the European Council, Mr ing they could take “a different personal Germany fifth highest totals
out requiring visas, but three-quarters Cameron said he wanted EU migrants to position” to the government line during UK in 2014 after Italy,
said Brexit would not affect their com- become eligible for certain in-work ben- the Brexit referendum campaign. Source: S&P Capital IQ the UK and France
pany’s ability to attract overseas talent. efits only after they had worked in the Sterling bonds page 15
Merkel cancels Davos trip as pressure
rises over handling of Cologne attacks
STEFAN WAGSTYL — BERLIN criminal complaints over the new year deportations for migrants convicted of
attacks in Cologne, with 40 per cent serious crimes. Ms Merkel said offend-
German chancellor Angela Merkel is
alleging sexual assaults and many vic- ers “must feel the full force of the law”,
facing increasing pressure at home
tims identifying their attackers as men adding that the plans were not only in
after her justice minister yesterday
of Arab or North African origin. the interests of citizens but of “the great
warned that attackers identified as
migrants in Cologne on New Year’s Eve
In an interview with the Bild am Son- majority of refugees”.
ntag newspaper, Mr Maas said: “Nobody As well as criticism from her own
were members of an organised crime
can tell me that this was not co- party and allies, Ms Merkel faces attacks
network.
ordinated or prepared . . . When such a from the far-right, with the immigra-
Heiko Maas said the mass sexual horde meets to commit criminal acts it tion-sceptic Alternative für Deutsch-
assaults and robberies that took place in looks like it was planned in some form.” land party calling for her resignation.
the centre of the German city were co- His remarks are significant as he is Christian Lindner, leader of the lib-
RMB25 ordinated by men using smart phones one of the Social Democrat members of eral FDP party, said if even the chancel-
HK$30 and social networks. Ms Merkel’s Christian Democrat-led lor admits that there is a problem with
Rup195 His claim came as Ms Merkel can- grand coalition, and his party has cham- upholding the law, then “a crisis of con-
Rp40,000 celled her regular trip to the Davos pioned minority rights for years. Now, fidence threatens”.
World Economic Forum, the global under public pressure for action, the Ms Merkel hardened her rhetoric
W4,500 leaders’ gathering, this month in the SPD is joining the chancellor’s CDU after police said the Cologne assailants
RM10.50
wake of growing public outrage, mount- party in proposing tougher laws on were part of a crowd of around 1,000
Rupee 280
Peso 130
ing criticism of her refugee policy and migrant criminals. young men of Arab or North African ori-
worries over integrating migrants. At the weekend CDU leaders backed gin, with 22 asylum seekers among the
NT$130 More than 500 women have now filed plans to extend judges’ powers to order 32 people suspected of crimes.
Bht140
US$4.50
World Markets
STOCK MARKETS CURRENCIES INTEREST RATES
Jan 8 Jan 1 %Week Jan 8 Jan 1 Jan 8 Jan 1 price yield chg
S&P 500 1922.03 2043.94 -5.96 $ per € 1.091 1.086 € per $ 0.917 0.921 US Gov 10 yr 100.93 2.15 -0.01
Nasdaq Composite 4643.63 5007.41 -7.26 $ per £ 1.454 1.474 £ per $ 0.688 0.679 UK Gov 10 yr 102.04 1.77 -0.03
Dow Jones Ind 16346.45 17425.03 -6.19 £ per € 0.750 0.737 € per £ 1.333 1.357 Ger Gov 10 yr 104.55 0.52 -0.02
FTSEurofirst 300 1340.60 1437.53 -6.74 ¥ per $ 117.725 120.295 ¥ per € 128.385 130.676 Jpn Gov 10 yr 100.73 0.23 -0.02
Euro Stoxx 50 3033.47 3287.98 -7.74 ¥ per £ 171.154 177.303 £ index 89.744 90.664 US Gov 30 yr 101.38 2.93 0.00
FTSE 100 5912.44 6242.32 -5.28 € index 86.146 86.280 $ index 106.227 106.027 Ger Gov 2 yr 102.74 -0.33 0.00
FTSE All-Share 3272.61 3444.26 -4.98 SFr per € 1.085 1.087 SFr per £ 1.447 1.475 price prev chg
CAC 40 4333.76 4637.06 -6.54 COMMODITIES Fed Funds Eff 0.24 0.12 0.12
Xetra Dax 9849.34 10743.01 -8.32 Jan 8 Jan 1 %Week US 3m Bills 0.21 0.20 0.01
0 2 Nikkei 17697.96 19033.71 -7.02 Oil WTI $ 32.94 37.21 -11.48 Euro Libor 3m -0.14 -0.13 -0.01
Hang Seng 20453.71 21914.40 -6.67 Oil Brent $ 33.34 37.60 -11.33 UK 3m 0.59 0.59 0.00
FTSE All World $ 247.57 263.71 -6.12 Gold $ 1101.85 1082.25 1.81 Prices are latest for edition Data provided by Morningstar
2 ★
Economic management
Financial system largely stable, says Beijing
Regulator attempts to
reassure but investors
braced for further turmoil
TOM MITCHELL — BEIJING
China’s financial system is “largely sta-
ble and healthy”, the country’s foreign
exchange regulator said at the weekend
in an effort to reassure global markets as
investors braced for a possible resump-
tion of last week’s market turmoil.
Attention is likely to focus on China’s
central bank and its management of the
renminbi this week, after the markets
regulator appeared to stabilise last
week’s stock sell-off by scrapping a
Foreign currency debt
China volatility adds to pressure on emerging markets
JONATHAN WHEATLEY — LONDON
Policymakers in emerging markets
should brace themselves for another
round of growth challenges, analysts
have warned, after last week’s turmoil
on China’s stock and currency markets
spread across the world.
“The year has started with Chinese vola-
tility and with more doubts about Chi-
nese policy in general, and that puts
even more pressure on emerging mar-
kets,” says Maarten-Jan Bakkum, senior
emerging market strategist at NN
Investment Partners.
The most direct threat comes from
the sharp and unexpected depreciation
of China’s currency, the renminbi,
which fell 1.3 per cent against the dollar
last week.
China’s role in global trade means a
weakening renminbi puts pressure on
other emerging market currencies to
weaken, too. This can help emerging
market exporters as a weakening cur-
rency makes their goods more competi-
tive but that advantage can be dwarfed
by difficulties paying foreign currency
debts in a devalued local currency.
Many emerging market companies
filled up on cheap foreign currency debt
during years of ultra-loose monetary
policies in the US. These have now gone
into reverse. Foreign currency debt at
emerging market companies rose from
$900bn to $4.4tn in the decade to mid-
2015, according to the Institute of Inter-
national Finance, an industry associa-
tion, using data from the Bank for Inter-
national Settlements.
Yet there is potentially a much greater
problem, say analysts, in the even bigger
build-up of local currency debt in
emerging markets over the same dec-
ade, when total foreign and local cur-
rency debt rose from the equivalent of
$5.4tn to $24.4tn, or 90 per cent of
emerging market gross domestic prod-
uct, according to the IIF.
These debts too are vulnerable to a
falling renminbi, partly because emerg-
ing market banks find it harder to raise
funding abroad as their currencies
weaken, making them less able to “roll
over” company loans.
Local bank lending is also affected by
weakening economic growth, sector-
specific risks such as those afflicting raw
materials and manufacturing industries
in many emerging markets, and market
volatility — all factors exacerbated by
the turmoil in China.
The IIF’s most recent survey of bank
lending conditions in emerging markets
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controversial “circuit breaker” mecha-
nism and extending a ban on share sales
by large shareholders.
The renminbi fell 1.5 per cent against
the dollar in onshore trading last week
to Rmb6.59 — a sharp move for the care-
fully managed currency. Traders have
largely ignored the central bank’s guid-
ance that they should focus on the ren-
minbi’s stability against a basket of 13
currencies rather than volatility against
the dollar.
Offshore, the renminbi fell 1.7 per
cent against the dollar to Rmb6.68, wid-
ening the spread between the two rates
to a record level. The gap implies that
international investors are pricing in
further weakening of the onshore rate.
Storm clouds on the horizon
Chinese stocks look expensive... ...and the renminbi may have
P/E ratios further to fall
Shanghai comp
Hang Seng China
Enterprises
Hang Seng index
2011 12 13 14 15 16
Sources: Thomson Reuters Datastream; BIS; IIF
showed a steep deterioration in the
third quarter of last year — when China’s
stocks and currency both fell sharply —
to the worst level since 2011.
Adam Slater, lead economist at
Oxford Economics, a research company,
says rising debts, falling profits and
tighter credit conditions have raised the
danger of nasty surprises. “The trouble
with EM companies, apart from there
having been a lot of debt issuance, is that
we don’t know much about their credit-
worthiness,” he says. “Hidden areas of
risk suddenly emerging is a recipe for
bad outcomes and contagion. This is one
of our key concerns for 2016.”
Emerging market exporters have
been hit especially hard by a global fall
in commodity prices linked to China’s
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FINANCIAL TIMES
INTERNATIONAL
Before the People’s Bank of China unex-
pectedly devalued the currency in
August, the two rates traded at virtually
the same level.
More recently, the People’s Bank of
China has been letting the onshore rate
weaken and intervening in the offshore
market to limit the gap. Separately, the
State Administration of Foreign
Exchange (Safe) has been scrutinising
banks that help clients arbitrage
between the two — a move that some
critics feel is inconsistent with the Inter-
national Monetary Fund’s recent desig-
nation of the renminbi as an official
reserve currency under its special draw-
ing rights (SDR) regime.
“We seem to be drifting back into a
Renminbi against the dollar (rmb per $)
25
6.2
20
6.3
6.4
15
Offshore 6.5
Onshore
10
6.6
5 6.7
Jan 2015 Jan
2016
slowing economy in the past two years.
Mr Slater says there is good reason to
expectChinesestockstocontinuetofall.
“Last year’s sell-off began from very
heavily overvalued levels. On the way
down, government intervention stalled
and even reversed the fall, but there was
always an amount of suppressed selling.
So it’s not surprising the sell-off has con-
tinued.”
Indeed, measured by the commonly
used ratio of price to projected earnings,
shares in China are still expensive. They
have traditionally traded at valuations
close to those of shares in Hong Kong.
But in China’s hyper-rally last year, the
two lost contact; even after last week’s
falls they are still far apart.
If shares fall further, will that add to
Hong Kong rattled by disappearance of booksellers
BEN BLAND — HONG KONG
At the shuttered Causeway Bay Books
store in the heart of a glitzy shopping
district, concerned citizens have hung
messages urging its missing proprietors
to “come home safely” and “open the
store again” while vowing that “freedom
of speech never dies”.
Someone else has posted a banner
outside the store, one of several in Hong
Kong that specialise in books banned in
China, warning that “mainland public
security roam here”.
The semi-autonomous territory has
been shaken by the mysterious disap-
pearance of two owners and three staff
from the shop and by allegations that
they were taken by mainland security
officers cracking down on the thriving
trade in books about everything from
corruption in today’s Communist party
to the sexual proclivities of past leaders.
Democracy activists fear the incident
is the latest — and most serious — in a
growing list of threats to the autonomy
and freedoms that were guaranteed by
Beijing for 50 years when it took control
of the city from Britain in 1997 under the
two-tiered [renminbi] system and that
is worrying,” said one investment strat-
egist, who asked not to be named.
“How can you be in the SDR and yet
you penalise banks for arbitraging
between the two rates?” he added. “It’s
outrageous and wrong. They shouldn’t
be in the SDR and doing that. They
should be making sure they continue
liberalising to unify the two rates.”
The IMF identified the rising spread
between the onshore and offshore RMB
rates as an “operational challenge”
when it decided in November to include
the currency in the basket used to value
its special drawing rights from October 1
this year. But it also argued that reforms
under way would eventually allow
EM corporate debt has surged... ...as profitability has fallen
Corporate debt ($tn)
25
All local and foreign
currency, expressed in $ 20
15
10
All foreign currency,
expressed in $ 5
0 70
2006 08 10 12 14 15
pressure on the renminbi? There is no
direct link between Chinese share prices
and exchange rates, as foreign participa-
tion in China’s stock markets is limited.
But it appears Chinese investors are sell-
ing renminbi-denominated assets and
buying dollar-denominated ones.
“It is not always clear who is doing it,”
says Mr Bakkum, “but people are less
comfortable with renminbi assets as the
valuations are not right.”
Even without downward pressure
from stocks, the renminbi seems set on
a path to more depreciation against the
dollar. Since the government loosened
its grip on the currency last August, the
previous pattern of slow, measured
movements has changed. Last week,
even the tightly controlled onshore
Freedom fears. Crackdown on critics
“one country, two systems” arrange-
ment. Publishers are worried the disap-
pearance of the booksellers could under-
mine Hong Kong’s status as home to
informal and irreverent writing that
offersrareinsightsintotheregimeforthe
millionsoftouristswhovisiteachyear.
“If it is true the mainland police can
come to Hong Kong to catch people,
then it’s horrifying,” says Jin Zhong, a
publisher who knew some of the miss-
ing booksellers. “I’ll be more careful for
sure. I am also afraid of being caught.”
But the repercussions reach much far-
ther than Hong Kong. Two of the van-
ished five booksellers are EU citizens,
one British and the other from Sweden.
The EU said the lack of information
about their whereabouts and wellbeing
was “extremely worrying”.
Philip Hammond, the UK’s foreign
secretary, who happened to be visiting
Beijing last week, warned that “it would
not be acceptable for somebody to be
spirited out of Hong Kong in order to
face charges in a different jurisdiction”.
The disappearance of the booksellers
has added to concerns that China’s
clampdown on critics is extending
“unencumbered” access to China’s
onshore markets. Any moves to restrict
that access so soon after its big vote of
confidence in Beijing and China’s reform
path would be potentially embarrassing
for the IMF.
In a statement at the weekend, Safe
tried to reassure investors. “China’s eco-
nomic fundamentals are strong,” the
regulator said. “Foreign exchange
reserves are relatively abundant and the
financial system is largely stable and
healthy.”
The PBoC last week blamed “specula-
tive forces” for the renminbi’s recent
weakness against the dollar.
Additional reporting by Shawn Donnan,
Jackie Cai and Christian Shepherd
The Shanghai
skyline
Johannes Eisele/
AFP/Getty Images
MSCE Emerging Markets index
Debt to equity Return on equity
110
100
90
80
2008 10 12 14 16
exchange rate saw dollar losses during
daily trading of well over 1 per cent.
On the less controlled offshore mar-
ket, losses have been sharper still, sug-
gesting investors believe the onshore
rate will also fall further. If so, says Mr
Bakkum, it will weigh heavily on risk
appetite for emerging market assets. “A
relatively stable renminbi was an
anchor for other EM currencies.”
China is not the only source of danger
to emerging markets this year. Mr Bak-
kum mentions deepening political cri-
ses in Brazil, South Africa, Turkey and
the Middle East.
“All those are still there,” he says. “As
China becomes more of a risk, it doesn’t
look good for the next few months.”
Lawrence Summers page 9
beyond the borders of Beijing’s legal
jurisdiction. “This seems like a naked
attack on freedom of expression in
Hong Kong, the likes of which we
haven’t seen since the handover in
1997,” says William Nee, China
researcher for Amnesty International.
“Coming after two Chinese democracy
Protesters in
Hong Kong
demonstrate
in support of
the missing
booksellers
activists were returned from Thailand,
it looks like the creeping internationali-
sation of China’s crackdown on dissent.”
Ten days after Lee Bo, one of the own-
ers of Causeway Bay Books and a British
passport holder, was last seen in Hong
Kong, and three months after his col-
leagues disappeared, there is still no
clarity about what happened to them.
Beijing has made no official comment
on what happened to the booksellers
although Wang Yi, China’s foreign min-
ister, responded to Mr Hammond’s
Monday 11 January 2016
Diplomacy
Poland
summons
German
ambassador
over remarks
HENRY FOY — WARSAW
Poland has summoned the German
ambassador in Warsaw after alleged
“anti-Polish remarks” by German poli-
ticians, as a war of words over the
actions of Warsaw’s new ultra-
conservative government deepened.
Poland’s foreign minister will meet the
German envoy later today to “defend
Poland’s interests”, his office said, after a
series of remarks by German officials
criticising the new broadly nationalist
and Eurosceptic administration.
The summons followed a stinging let-
ter written by Zbigniew Ziobro, Poland’s
justice minister, to German EU commis-
sioner Günther Oettinger that com-
pared the EU’s oversight of Poland to the
Nazi occupation during the second
world war.
The remarks hark back to Mr Ziobro’s
party’s last period in office, which was
marked by strained relations between
Poland and its western neighbour. The
argument casts a shadow over one of the
European Union’s most important rela-
tionships in which the two capitals
worked for decades to put behind them
the Nazi past and later to champion the
union’s eastward enlargement.
The ambassador’s summons comes
after comments made by Martin Schulz,
the German president of the European
Parliament, who told the Frankfurter
Allgemeine Zeitung newspaper that
Poland’s new government was practis-
ing “Putin-style politics”.
Since its election in October, Poland’s
new ruling rightwing Law and Justice
party has startled European authorities
with its aggressive moves to take control
of the country’s public media outlets,
government agencies and its highest
legislative court, deepening divisions
between Warsaw and Brussels.
The European Commission will on
Wednesday debate whether the moves,
which have sparked fears of rising
illiberalism across the EU’s eastern
20 flank and have been condemned by
human rights organisations, warrant
18 placing Warsaw under EU supervision
according to rules protecting the rule of
16
law in member states.
14 In his letter to Mr Oettinger, who had
initially proposed that Poland may be in
12 breach of these rules, Mr Ziobro wrote
10 that he did not usually respond to “silly
remarks about Poland uttered by for-
8 eign politicians”, and made reference to
the wave of sexual assaults that took
place during New Year’s Eve celebra-
tions in Cologne to suggest he was a
hypocrite.
“You demanded that Poland be
placed under supervision. Such words,
spoken by a German politician, have the
worst possible connotations for Poles,”
wrote Mr Ziobro, in a letter reported by
the state-run PAP news agency.
“For me, too. I am the grandson of a
Polish officer who, during World War II
fought in [Poland’s] underground
Home Army against ‘German supervi-
sion’.
“I came to the painful conclusion that
it’s easier for you to talk about fictitious
threats to media freedom in other coun-
tries than condemn censorship in your
own country,” wrote Mr Ziobro, refer-
ring to what he said was a delay by
German newspapers to report on the
assaults.
expression of concern by insisting that
Mr Lee was “first and foremost a Chi-
nese citizen”.
The Global Times, a tabloid offshoot
of the Chinese Communist party’s flag-
ship newspaper, argued in an editorial
that for the mainland to start an investi-
gation into the bookstore “is not only
reasonable, it also conforms with Chi-
nese law”. But CY Leung, Hong Kong’s
Beijing-backed chief executive, disa-
grees with that view, insisting mainland
authorities have no legal right to enforce
the law in Hong Kong.
The uncertainty over the booksellers’
fate “is scary for everyone”, says David
Bandurski, an expert on the Chinese
media at the University of Hong Kong.
He urged his peers in Hong Kong to
fight the growing “climate of self-cen-
sorship” by taking a “use it or lose it”
approach to their freedoms.
But Bao Pu, another publisher in
Hong Kong, predicts the city’s unique
role as a gateway for valuable informa-
tion about China will diminish. “In the
future I suspect it will be harder, and
fewer titles will be published,” he says.
Additional reporting by Gloria Cheung
Monday 11 January 2016 ★ FINANCIAL TIMES 3

INTERNATIONAL

Bush struggles to 6%
gain attention as
Support for Jeb
Bush among
Republican voters,
according to data
from NBC News and

he sets sights on
SurveyMonkey,
putting him in fifth
place among the
candidates

New Hampshire 20
Percentage-point
lead held by Donald
Trump over Mr Bush
in New Hampshire,
Team tries to fix lacklustre image according to NH1
News, although Mr

with series of small-forum events

COURTNEY WEAVER
PETERBOROUGH, NH
At recent campaign events in New
Hampshire, Jeb Bush has been handing
out miniature toy turtles to the kids who
come along to his town hall meetings.
“It’s a symbol of something,” Mr Bush
said describing what appears to be his
new campaign mantra. “Slow and
steady wins the race. Remember the
turtle and the hare?” he added, presum-
ably referring to the Aesop fable The
Tortoise and the Hare.
Once seen as the presumptive Repub-
lican frontrunner because of his family
name, his strong résumé and the deep
pockets of his financial backers, Mr
Bush has instead faltered in national
polls and on the debate stage, outshined
by more radical rivals such as real estate
mogul Donald Trump and Texas Sena-
tor Ted Cruz.
With just three weeks to go until the
Iowa Caucus, where Mr Bush is
expected to perform poorly among the
state’s evangelical Republican voters,
the former Florida governor and his
campaign staff are focusing their atten-
tion on the February 9 primary in New
Hampshire, a state with a more moder-
ate Republican base.
While Mr Bush has emphasised that
the New Hampshire race is just one part
of a larger national campaign, in reality
a strong or poor showing in the state
could either reinvigorate his campaign
— convincing Republicans that he is the
establishment candidate to take on Mr
Cruz and Mr Trump — or put pressure
on him to bow out, so that resources can
be redistributed to another candidate.
So far Mr Bush’s outlook in New
Hampshire is mixed. While a new poll
by New Hampshire’s NH1 News puts Mr
Bush in second place among Republican
and Republican-leaning voters, Mr
Trump is still beating him by close to 20
percentage points in the state.
Nationally he is faring far worse.
According to an NBC News/SurveyMon-
key poll, Mr Bush is currently polling in
fifth place among US Republican voters
with just 6 per cent of the vote, despite
his well-funded super-Pac Right to Rise
spending an estimated $50m on cam-
paign advertising.
Mr Bush’s campaign struggles have
come as a wake-up call to the Republi-
can establishment, which has been
caught off-guard by the rise of Mr
Trump and Mr Cruz on the back of voter
frustrations with the Washington
establishment.
As the son of one former president
and the brother of another, Mr Bush is
seen more tied to that establishment
than most. According to Gallup,
Mr Bush’s unfavourable rating is now 45
per cent among Republican voters — the
highest for any Republican nominee.
In New Hampshire, Mr Bush’s staff is
trying to combat this perception. It has
doubled the number of on-the-ground
campaign staff from about 20 people to
40, and organised numerous small-fo-
rum events where the sometimes awk-
ward Mr Bush can woo voters in more
intimate and personal settings.
“All these selfies people take — they’re
fantastic,” said Rich Killion, Mr Bush’s
Jeb Bush is campaign strategist for the state.
trailing in fifth “They’re going to email it around to
place among their friends and they’re going to say —
Republican let me tell you what I talked to Jeb Bush
voters, who about last night.
are frustrated “They’ve seen him over so many
with the months and they see him over and over
Washington again and at the end of the day they’ll
establishment see Jeb as the person most ready to be
Reuters/Brian Snyder
president on day-one,” Mr Killion
declared.
As Mr Bush criss-crossed the state of
New Hampshire on Thursday, he
appeared to gradually be coming out of
his shell, losing the woodenness and
awkward hand gestures that do little for
his on-camera presence. At times he
appeared to be doing something that
he’s rarely seen doing on-camera: enjoy-
ing himself.
Asked how he compared to his rival
New Jersey Governor Chris Christie, Mr
Bush deadpanned, “I think I’m much
better looking.” During a raffle in the
town of Portsmouth, he quipped: “This
is not like Miss Universe, I promise.”
Over the course of the three campaign
stops last Thursday at a company cafe-
teria, country club rotary luncheon and
200-person town hall event, Mr Bush
ran through a stump speech that
focused on a recent visit to The Citadel
— South Carolina’s famed military col-
lege — and his plans to expand the US
military, as well as his record of educa-
tion reform in Florida.
While he repeatedly used the term
“radical Islam” — a phrase the Demo- Supporters
cratic contenders have shied away from
— and referred to President Barack worry that
Obama’s healthcare programme as “an Bush’s
abomination”, he was at times remarka-
bly conciliatory. ‘wishy-
He said he respected Mr Obama’s washy’
“passion and conviction” in his impas-
sioned speech on gun control this television
month, even if he disagreed with the presence
president’s use of executive power.
“He was very emotional about it and could cost
coming from a family that gets emo- him the
tional from time to time I respect that,”
Mr Bush said. nomination
Bush is second
among Republican
and Republican-
leaning voters
$50m
Estimated amount
spent on campaign
advertising by
Mr Bush’s super-Pac
Right to Rise
“I don’t ascribe bad intentions to the
guy,” he said at another point.
After the events, some of his audience
members said they were now consider-
ing voting for Mr Bush — or at least were
now willing to include him as one of
their top four or top five candidates.
“I like to see him in this realm. He’s so
calm. He’s in his zone,” said Rich Hel-
man, a retiree who had driven up to
the Peterborough event with his wife
Deborah.
“We’ve watched all the debates and
felt bad for him,” Mrs Helman said.
Seventy-five miles to the east, Marie
Brownell, a Portsmouth insurance
agent, said she was a strong supporter of
Mr Bush. But she worried that the
former governor’s “wishy-washy” tele-
vision presence could ultimately cost
him the nomination.
“I said to him, ‘Please hold on’,” she
confided after meeting Mr Bush at her
country club. “Because in the polls he
doesn’t look so great.”
Edward Luce page 9

Economic performance. Season openers

Early voting states tussle with

problems others would love to have
Iowa and New Hampshire
enjoy low unemployment but
battle to find the right staff
SAM FLEMING AND SHAWN DONNAN
WASHINGTON
Their electorates will have an outsize
influence on the course of the US presi-
dential election, but the two states that
open the primary and caucus season
next month are outliers when it comes
to their economic performance.
Iowa and New Hampshire have far
lower unemployment rates than the US
average, and their median household
incomes are markedly higher, official
data show. New Hampshire, where Jeb
Bush was this week battling to revive his
flagging campaign, had unemployment
of just 3.2 per cent as of November —
below the 5 per cent rate across the US,
while the median household income in
the state is the second highest in the
country after Maryland.
Iowa, where many other Republicans
were aggressively canvassing this week,
has seen its jobless rate fall by nearly a
percentage point over the past year to
3.4 per cent. In the north-west of the
Median annual
household income
$, by state (2014)
80,000
New Hampshire
70,000
60,000
Iowa
US
Nevada 50,000
South Carolina
40,000
Sources: U.S. Census Bureau; Bureau of Labor Statistics
state, Mike Wells, whose family-owned
company Wells Enterprises churns out
3m gallons of ice cream a week, says he
lifted entry-level wages by $1 to $15 an
hour last year and introduced a $1,000
signing-on bonus to attract workers.
“We compete with a lot of heavy man-
ufacturers in our area for labour,” he
says. “We are looking forward to
another solid year.”
On the surface, buoyant fortunes in
the two states might suggest that voter
concerns there would differ from the
broader US electorate, where despite
robust hiring figures released on Friday
there is still angst about the economy.
Larry Sabato of the University of Vir-
ginia argues the two states are not repre-
sentative of the country, and that candi-
dates in Iowa do not generate much
applause talking about the economy.
“That is not what people want to hear.
They want to hear about immigration,
Isis, gun control — the hot-button
issues,” he says.
Some analysts, however, argue that
the underlying disaffection hanging
over large parts of the US population is
palpable even in these small, relatively
fortunate states in the country’s north.
“The populist appeal of both Bernie
Sanders and the Donald Trump, Ted
Unemployment rate by state
Per cent
Nevada
10
S. Carolina
8 secondary education, something vital to
Nevada
6 growing cities.
N. Hampshire S. Carolina
Iowa
4 minds of many. “While the economy is
Iowa
N. Dakota N. Hampshire
N. Dakota
2 don’t think people look at those num-
Nov 2012 Nov 2015
Cruz nexus is being driven by a deeply
understandable sense of frustration on
the part of the American people about
the basic economic reality of their lives,”
says Michael Strain of the right-leaning
American Enterprise Institute.
A state like New Hampshire has prob-
lems that many other states would love
to have. Finding skilled workers, partic-
ularly in manufacturing, has become
such an issue that some companies are
busing in new employees from neigh-
bouring states, according to Jim Roche,
president of the state’s Business and
Industry Association.
In Iowa, the stronger health of the
economy has changed the conversa-
tions citizens are having in the election
year. “We don’t have big things to worry
about,” says David Swenson, an econo-
mist at Iowa State University. “We don’t
have struggling farmers the way we
used to. We don’t have long lines of
unemployed construction work-
ers . . . Everywhere you look around,
you see growth and investment.”
In South Carolina, where Republicans
hold their third contest, jobs in manu-
facturing have grown 7-10 per cent
annually since 2010, according to
Joseph Von Nessen, an economist at the
University of South Carolina’s Moore
School of Business.
Yet this does not mean these states are
devoid of the anger about the economy
that has helped the rise of non-
mainstream candidates, including Mr
Sanders on the Democratic side.
Many South Carolinians are being left
behind in the recent recovery as their
education lags behind the demand for
skilled workers. Just 36 per cent of South
Carolina’s workers had any post-
getting a well-paid job. In Iowa the
strong aggregate data hide a bifurcation
in the state’s economy between its
depopulating rural areas and its rapidly
Neil Niman, an economist at the Uni-
versity of New Hampshire, says he
detects a lingering post-crisis sense of
vulnerability in his state that means the
economy remains foremost in the
going strong we still face that same
uneasiness that you see everywhere
about ‘How long is this going to last?’”,
he says. “While the numbers look good I
bers as being indicative of their reality.
A lot of people haven’t seen their real
incomes go up in a long time.”
4 ★ FINANCIAL TIMES Monday 11 January 2016

INTERNATIONAL

Regional government

Catalan deal prompts fresh independence push

Election of new leader
puts pressure on Madrid
parties over secession
TOBIAS BUCK — MADRID
Catalonia’s pro-independence parties
agreed to elect a new regional president
over the weekend as part of a last-
minute deal that is expected to acceler-
ate the region’s push for independence
and raise pressure on leaders in Madrid
to end Spain’s post-election political
deadlock.
Carles Puigdemont, the new presi-
dent, was set to be confirmed in his post
during a special session of the Catalan
parliament last night.
Mr Puigdemont, who replaces Artur
Mas, will have an explicit mandate to
lead Catalonia towards secession from
Spain over the next 18 months. His gov-
ernment is tasked with effectively set-
ting up a state within the state by creat-
ing a separate Catalan central bank, tax
authority, social security system and
possibly even the nucleus of an inde-
pendent military.
Mr Puigdemont, a former journalist
and the current mayor of the provincial
city of Girona, will enjoy what looks to
be a solid parliamentary majority to
implement that plan.
The renewed push for independence
is certain to meet fierce resistance from
Madrid but it comes at a moment of pro-
nounced weakness and political drift in
the Spanish capital. Last month’s gen-
eral election produced a deeply frag-
mented parliament, with no obvious
path for either the left or the right to
form a stable government.
Analysts said pressure would rise on
mainstream parties in Madrid to set
aside their own differences and estab-
lish a unionist common front against
Barcelona. “You could have a situation
where there is a government in Catalo-
nia going full steam ahead towards inde-
pendence and with a strong majority in
parliament, while here in Madrid you
have nothing,” said José Ignacio Torre-
blanca, a senior fellow at the European
Council on Foreign Relations.
“So this really adds to the pressure to
either form a new Spanish government
or go quickly for new elections. Either
way, party leaders will not have much
time to figure it out.”
Mariano Rajoy, Spain’s prime minis-
ter and leader of the centre-right Popu-
lar party (PP), was quick to capitalise on
the events in Catalonia. Hours after the
news of the deal filtered through on Sat-
urday, Mr Rajoy’s office called for the
creation of a “Spanish government with
a broad parliamentary base that will
guarantee stability . . . and confront the
secessionist challenge”.
That appeal is likely to prove particu-
larly problematic for the Socialist party,
which is opposed to Catalan secession
but fears the electoral backlash of a gov-
ernment pact with its historical rival.
Changing of the guard: Artur Mas,
left, and Carles Puigdemont
Pedro Sánchez, Socialist leader, has
repeatedly ruled out a deal with the PP.
Mr Mas served as president of Catalo-
nia from 2010 and has played a crucial
role in escalating the region’s clash with
Spain. His resignation was the price
demanded by the far-left Popular Unity
Candidacy, the smaller of the two pro-
independence parties, in exchange for
supporting the new government.
Mr Puigdemont, like his predecessor,
belongs to Junts pel Si, the larger and
more mainstream secessionist party. In
September, the two parties won a joint
majority of seats in the Catalan parlia-
ment but then fell out over who should
lead the government.
Mr Mas made clear he was not retiring
from politics and was ready to serve the
new Catalan government in a different
capacity. That assurance has prompted
widespread speculation that Mr Mas
will continue to play an important role
in the independence campaign.
“He will serve as something like the
guardian of the independence process.
And if things don’t work out, he has the
chance to stand again as a candidate [for
the presidency] in the next elections,”
said Oriol Bartomeus, a political scien-
tist at the Autonomous University in
Barcelona.
Crucially for Mr Mas and his party, the
eleventh-hour deal with the CUP means
they do not face the threat of a repeat
election in March. A new poll would
have dealt a blow to the independence
campaign, not least by highlighting dis-
cord inside the pro-secession camp and
the failure of its leaders to rally behind a
common leader. It was also far from
clear whether the independence camp
would be able to repeat the strong result
achieved in last year’s regional ballot.

Oil industry Middle East

Critics round on proposals for Saudi Aramco listing Arab foreign

ministers
ANJLI RAVAL AND NEIL HUME — LONDON

A current joke among Riyadh business-

men is that the Saudi Arabian ministry
of planning has become the ministry of
McKinsey.
The management consultancy has
emerged as an influential force among
other key advisers to Mohammed bin
Salman, the kingdom’s powerbroker
deputy crown prince, who is driving
through sweeping economic reforms to
counter the oil slump.
The latest idea to come out of this
environment of radical change is a pos-
sible stock market flotation of Saudi
Aramco, the secretive state-controlled
oil company that is the House of Saud’s
main source of power and wealth.
But the prospect of listing Saudi Ara-
mco, the world’s biggest oil company, or
some subsidiaries, would be fraught
with complexity; including how the
kingdom cedes control of even a sliver of
an entity so bound up with the national
interest. Not only does Saudi Aramco
control the country’s prized resource
assets but it is woven into the fabric of
Saudi society, responsible for building
stadiums, schools and hospitals.
“Aramco is so integrated into state
policy in other areas that I really don’t
see the advantage of listing,” said one
Saudi oil industry insider.
As well as raising funds to reduce a
ballooning budget deficit, the 30-year-
old Prince Mohammed said a flotation
would improve transparency and act as
a check against possible corruption — a
remark that angered Saudi Aramco
executives.
Conversations with those senior in the
country’s oil industry and people
briefed by Saudi Aramco executives,
however, suggest widespread unease,
not just about a potential listing but also
its hasty communication to the market.
Comments that Prince Mohammed
was “enthusiastic” about a flotation —
first reported by The Economist — were
quickly followed by a statement from
Saudi Aramco saying it was studying
options; from listing some petrochemi-
cal and other “downstream” assets, to
selling shares in the parent company,
which includes the core “upstream”
crude producing business.
Any decision would be another dra-
matic response to the oil price collapse;
moves toward privatisations as well as
spending cuts and subsidy reforms have
already been announced.
Saudi Aramco has started asking
advisers to put forward proposals for an
offering of up to 20 per cent of the com-
pany, one person said, although the sale
of a smaller percentage of stock is likely.
But it is early days, say Saudi oil indus-
1933 Saudi Arabia allows Standard Oil
Timeline of California (Socal) to search for oil
1938 Oil discovered after five years
Rise of 1939 Saudi Arabia exports crude for the
first time on a tanker holding less than
an energy 1/20th of the load of today’s vessels
behemoth
1944 The California Arabian Standard
Oil Company, a Socal subsidiary,
changes its name to the Arabian
American Oil Co, or Aramco.
1950s Oil production doubles over the
decade to exceed 1m barrels per day
1960 The Opec oil cartel is formed
1970s The Saudi government starts
building a stake in Aramco before
taking full control in 1980
1988 Arabian American Oil Co
becomes Saudi Aramco.
2009 An expansion programme aimed
at boosting Aramco’s crude production
capacity to 12m b/d is completed
try insiders, and it is unclear what form
any listing could take. Discussions until
recently have largely centred on the sale
of shares in its refining and petrochemi-
cals divisions. Some in the highest eche-
lons of Saudi Aramco early last week
made clear to Prince Mohammed that
any listing of shares in the parent com-
pany and its most important upstream
assets would be a bad idea, one person
familiar with the matter said.
Among concerns are that any share
sale would benefit only a small, wealthy
pool of domestic investors and prevent
the company from continuing to invest
— without interference — in social pro-
grammes, according to two people close
to Saudi Aramco.
The disquiet illustrates the division
between the company’s leadership and
the prince, who in May was appointed
the ultimate head of the oil industry.
“This [the IPO] has not been driven by
those within Aramco,” said one insider.
A senior industry source added:
“Rather than putting forward a well-
thought-out proposal this has just cre-
ated havoc. Let’s be clear. There is no
consensus.”
Prince Mohammed believes a listing
Powerbroker: would boost transparency and help pre-
Saudi Arabia’s vent corruption. Certainly the company
deputy crown is opaque to outsiders even if things are
prince, different inside, where it is said to follow
Mohammed bin international standards.
Salman, second Even so, a potential listing would be
left, is believed complicated because of the secrecy sur-
to be rounding Saudi Aramco’s inner work-
‘enthusiastic’ ings, making it difficult to ascertain the
about a flotation true value of its reserves, particularly
of Aramco with oil prices at an 11-year low.
Fayez Nureldine/AFP/Getty
For investors, the question of where
national interests end and shareholder
ownership begins is unclear. The com-
pany’s profits are taxed at 85 per cent
and it pays 20 per cent royalties on its oil
production to the government, two peo-
ple familiar with the company said.
Any flotation on Saudi Arabia’s
domestic exchange would have to be
carefully calibrated so as not to distort
the market’s balance. Bankers and law-
yers have said a listing on a big foreign
exchange is unlikely as it would require
detailed disclosures.
“What we’re seeing is a money grab-
bing exercise,” said the senior industry
source. “This is not policy.”
Additional reporting by Simeon Kerr
Jonathan Ford page 16
increase
pressure
on Tehran
SIMEON KERR — DUBAI
Arab foreign ministers accused Iran of
undermining regional security by
interfering in the Middle East, as
Riyadh sought to maintain pressure on
the Islamic republic.
Sunni Saudi Arabia and Shia Iran have
been locked in a war of words since the
start of the year when Riyadh executed
dissident Saudi Shia cleric Nimr al-Nimr
and Tehran warned of dire conse-
quences.
Riyadh called yesterday’s extraordi-
nary meeting of Arab foreign ministers
in Cairo to condemn attacks against the
Saudi embassy in Tehran and to
“denounce Iran’s intervention in the
internal affairs of the Arab countries”,
the official news agency of the United
Arab Emirates reported.
Saudi Arabia, which has cut diplo-
matic ties with Iran, is planning to ban
commercial ties and bar its citizens
from travelling there. It has also threat-
ened further unnamed measures
against Tehran.
Both countries are locked in a sectar-
ian battle for regional dominance being
played out via proxies in the bloody con-
flicts of Syria and Yemen.
Riyadh accuses Tehran of supporting
disgruntled Shia communities in Bah-
rain and the eastern province of Saudi
Arabia. Iran’s influence in Lebanon and
Iraq has also disconcerted many Sunnis
in the Middle East.
Tehran, meanwhile, accuses Saudi
Arabia and other Gulf states of stoking
the deadly threat posed by Sunni jihadis
across the region, who are challenging
Iran’s allies in Damascus and Baghdad.
Mohammed bin Salman, Saudi Ara-
bia’s powerful deputy crown prince, said
in an interview with The Economist last
week he did not foresee a war with Iran.
Analysts say Riyadh and Tehran’s
rivalry could nonetheless further desta-
bilise the region via a worsening of con-
flicts in Syria and Yemen, heaping fur-
ther suffering on civilian populations.
Nabil Elaraby, the Arab League’s
secretary-general, said yesterday the
Arab world backed Saudi Arabia’s efforts
“tomaintainsecurityandsovereignty”.
Sheikh Abdullah bin Zayed Al
Nahyan, the UAE’s foreign minister,
called on Arab states to “take a clear
stance” against Iranian interference.

Cartel boss

Extradition of Mexican drug lord ‘El Chapo’ expected to drag on following his recapture
JUDE WEBBER — MEXICO CITY
With drug lord Joaquín “El Chapo”
Guzmán back behind bars, Mexico has
begun working on his extradition to
the US — a process likely to take
months, if not years.
“We won’t be desperately putting him
on a plane as if he were a ticking time
bomb,” one government source said.
“He has good lawyers . . . the govern-
ment wants to do this well.”
Mexican marines arrested the boss of
the Sinaloa cartel, credited with supply-
ing half the illegal drugs shipped into the
US, on January 8 after tracking him to a
house in the north-west town of Los
Mochis. After a shootout with his aides,
security forces pursued him through
1.2km of tunnels and drains in the cli-
max of a chase worthy of the Hollywood
biopic the drug lord dreamt of.
Guzmán, whose nickname means
Shorty, had been on the run for six
months after escaping from a high secu-
rity jail via a tunnel under his shower on
July 12 last year. It was his second great
escape: in 2001, he fled prison — either
in a laundry cart, or disguised as a
policeman depending on which story
you believe — and was at large for 13
years.
Unless he breaks out again, some-
thing Mexican officials say is impossi-
ble, he looks set, sooner or later, to fol-
low in the footsteps of other notorious
criminals. The attorney-general’s office
said in a statement: “With the recapture
of Guzmán, the respective extradition
procedures should begin.”
The US formally requested his extra-
dition last June and again in August, to
face cocaine smuggling, murder and
firearms possession charges.
Hollywood plot
Penn reveals jungle
meeting with Guzmán
Just when it seemed that Joaquín “El
Chapo” Guzmán’s exploits could not
get any more sensational, Hollywood
actor Sean Penn has revealed that he
secretly met the world’s most wanted
drug lord in a jungle hide-out while he
was on the run.
In an article for Rolling Stone
magazine, Penn describes a seven-
hour meeting over tacos and tequila.
He paints a portrait not of a callous
killer but of Mexico’s “other president”:
charismatic, gentlemanly, with a warm
smile that rarely leaves his lips.
Penn calls him both boastful — “I
supply more heroin,
methamphetamine, cocaine and
marijuana than anybody else in the
world” — and bashful. Guzmán, the
actor says, appears “overwhelmed and
somewhat bewildered” that he may be
of interest to the world. That is not the
only thing that sounds far-fetched.
Penn says El Chapo is not a violent
person. “Do I start trouble? Never,” he
quotes him as saying.
Mexico’s attorney-general said
El Chapo’s desire to make a film of his
life helped security forces catch him
on January 8. If it was Penn’s meeting
that nailed him, the actor appears
unaware, saying only that he got a
“credible tip” that the US Drug
Enforcement Administration “had
indeed become aware” of his trip.
Even before he was recaptured Guz-
mán’s lawyers had filed injunctions
seeking to block his extradition, some of
which remain pending.
If the foreign ministry signs off on the
extradition, his lawyers are expected to
mount fresh challenges — a path that
could lead to the Supreme Court,
according to Samuel González, former
head of the attorney-general’s organised
crime unit.
“I have no doubt he will be extradited,
there won’t be any alternative” Mr
González told the Financial Times, but it
could take “one or two or three years”.
Jorge Lara, a former assistant attor-
ney-general for international affairs,
said Mexico would want to play things
“by the book” but he predicted a
speedier resolution. “I think it could
happen within months,” he said.
Where exactly in the US El Chapo will
be extradited to will be decided by
Washington. He could not face the death
penalty as that was not on the statute
books in Mexico, Mr Lara said.
A US top security prison is a far less
appealing prospect than a Mexican one.
Drug lords are renowned for securing
Taking no chances:
Mexican security
forces keep hold of
Joaquín Guzmán at
a press conference
on Friday
privileges and continuing to operate
largely unhindered behind bars at
home, and Mexican officials have been
considered reluctant to hand them over
for fear of retribution.
Guzmán’s trump card could be the
beans he is willing to spill.
Monday 11 January 2016 ★ FINANCIAL TIMES 5
6 ★
Job cuts and the sale of assets provide the cornerstone of a plan to reinvigorate Italy’s largest bank,
but with investors unconvinced, the management is under pressure to take more radical action.
U
niCredit Tower in Milan is
seen by many as a symbol
of a resurgent Italy: a meas-
ure of how far the country
has come since the depths
of its post-crisis recession. Fitting then
that Federico Ghizzoni, UniCredit’s
chief executive, should use the imposing
231m-tall skyscraper to announce a
blueprint that he said would guarantee
the future of Italy’s largest bank by
assets.
The plan, revealed in November, out-
lined a 14 per cent cut in staff and the
disposal, or restructuring, of several
unprofitable businesses to boost returns
and capital by 2018. The chief executive
described the proposals for a bank with
150,000 employees and €900bn in
assets as “rigorous” and “ambitious”,
“realistic” and “executable”.
Investors thought otherwise. Nearly
two months on, UniCredit’s share price
is down 20 per cent. The stock is trading
at 0.6 times the bank’s tangible book
value compared with 1.3 times for the
European sector average, and 1.4 times
for Intesa Sanpaolo, its Milan-based
rival, according to Bloomberg data.
The subplot to Mr Ghizzoni’s com-
ments is that he is not just trying to
guarantee the bank’s future but also his
own position at the top of Italy’s only
globally significant financial institution.
“The stock has become once again a
classic ‘show me’ story where there is no
belief in the incumbent management,”
wrote analysts Ed Allchin and Andreas
Vollmer of independent research com-
pany Autonomous shortly after the
publication of the plan.
UniCredit — whose shares have
shrunk 87 per cent since 2007 — has
become a byword for the perils of cross-
border banking. Under former chief
executive Alessandro Profumo, a series
of pre-crisis acquisitions across Europe
created a bloated group with overlap-
ping governance and duplication of
functions. Costs now swallow up 61 per
cent of income.
Its 17-country international network,
stretching from Germany through to
Russia, Ukraine and Turkey, has made
it vulnerable to geopolitical risk — but it
is also a tale rooted in Italy. UniCredit
owns €84bn of non-performing loans,
‘The next three months are
crucial. If they deliver, they
are fine. If not Ghizzoni
becomes chairman and they
get a new CEO’
worth nearly a fifth of its total customer
loans and receivables. While its sky-
scraper headquarters might be sym-
bolic of national hopes for an economic
resurgence, the bank, with its lack of
profits in Italy and weak capital relative
to peers, is feeling the effect of the fragil-
ity of Italy’s economic recovery.
Italy’s banks have €330bn in gross
bad debt, according to the International
Monetary Fund, after a crippling three-
year recession laid low the small and
midsized companies that make up the
backbone of Italy’s economy. Those
same loans are weighing on the eco-
nomic revival as the banks, led by
UniCredit, struggle to be profitable and
lend again.
Against this backdrop, the bigger con-
cern to Italy is not the loss of Mr Ghiz-
zoni and his team but the risk of a
break-up that could see UniCredit sell-
ing the jewels of the group, such as its
operations in Turkey and Poland, or
even spinning off its business in Ger-
many. Such anxieties will stalk
UniCredit as long as its profits remain
weak and its shareholders unhappy,
senior bankers say.
“The banking sector is a crucial prob-
lem of Italy,” says Luigi Zingales, profes-
sor of entrepreneurship and finance at
the University of Chicago Booth School
of Business. “When there is low tide you
see who is swimming naked. And we
have a low tide and all the problems are
coming to the surface.”
Last-ditch effort
In 2004 UniCredit was one of the most
efficient banks in Europe, reaping rich
profits. So rosy was its outlook it wanted
to expand outside of Italy into markets
with tempting growth prospects. The
bank’s shareholders, overwhelmingly
Italian banking foundations tied to
political and social lobbies, found in Mr
Profumo, a former McKinsey consult-
ant turned commercial banker, the man
with the vision for the job.
He had two passions that would shape
the bank: Germany, and the desire to
expand in eastern Europe. Within a year
he had taken over HypoVereinsBank, a
troubled German retail bank with sig-
nificant exposure to eastern Europe,
turning UniCredit overnight into a pan-
European player with the number one
franchise in eastern Europe by assets.
With his focus on expansion to the
FINANCIAL TIMES
FT BIG READ. UNICREDIT
By Rachel Sanderson
Too
big to
thrive?
Total gross deteriorated loans
€bn Monte dei Paschi
di Siena
Banco
UniCredit Intesa Popolare Unione Banche
Sanpaolo Italiane (UBI Banca)
84.4 63.2 45.3
21.7
Source: Mediobanca
Tall thoughts: The UniCredit Tower in Milan,
headquarters of Italy’s largest bank — Vittorio Zunino Celotto/Getty
east, however, Mr Profumo was caught
off guard in 2006 when northern Italian
rivals Intesa and Sanpaolo announced a
mega-merger, creating Italy’s largest
domestic lender.
In a defensive move and under pres-
sure from the Bank of Italy and its then
governor Mario Draghi, UniCredit
bought Roman lender Capitalia, notori-
ous even then for a weak loan book. In a
final pre-crisis flourish, Mr Profumo
made another push eastward in July
Share prices
2007, paying €3bn in cash to get into
Rebased UniCredit
Kazakhstan and Ukraine.
By September 2010, amid a falling
Intesa Sanpaolo
Credit Suisse Group
share price, he was out of a job. Ousted
by those who had once backed him, he
Deutsche Bank 120
was replaced by Mr Ghizzoni, one of the
Banco Santander
100 bank’s senior managers following stints
in Turkey and Singapore.
80 It was a bumpy start for the UniCredit
veteran. In 2011 the bank came second
60 from bottom in European banking
stress tests, behind only Santander. And
40
having gone to the market three times
20 between 2009 and 2012 to raise a com-
bined €15bn in capital, Mr Ghizzoni was
2010 11 12 13 14 15 16 forced in 2014 to make €14bn in write-
Source: Thomson Reuters Datastream downs, effectively wiping off the value
ofitsacquisitionsoverthepasttenyears.
Board UniCredit executives cannot claim that lender is expected to overhaul its board
Divisions it is impossible to run a successful to convert it from a dual structure to a
bank in Italy. Its bugbear is the single board system.
over need comparison to its Milan-based rival Intesa Former Italian finance ministers
for fresh Sanpaolo, Italy’s largest local lender Fabrizio Saccomanni, 73, and Vittorio
blood by assets. Grilli, 58, are being considered as
Despite having more than €60bn in replacements for Mr Bazoli, say
non-performing loans, investors have insiders.
bought into Intesa Sanpaolo’s story — By contrast, UniCredit chairman
banking and asset management Giuseppe Vita, 80, had his contract
focused on one country, with assured renewed in May amid questions over
dividends. Its shares are up 27 per cent in whether the board is representative of all
the past year. its shareholders.
Giovanni Bazoli, Intesa Sanpaolo’s It remains mostly Italian although
octogenarian chairman, is set to step Aabar, BlackRock and Libya’s Central
down in the spring, at which point the Bank together own more shares than
Banca Popolare
Bper Banca
di Milano
13.1 11.0 5.9
Mr Ghizzoni’s rescue plan is his sec-
ond in 12 months as record-low interest
‘It is hard
rates and increasing capital demands for
from regulators squeeze margins.
“It is hard for Ghizzoni to keep pin- Ghizzoni
ning the blame on Profumo as he has
had a long time to sort all this out,” says
(below) to
a person close to the chief executive. keep
Cutting costs pinning the
Under the restructure the workforce blame on
will be reduced by 14 per cent by 2018 —
more than 18,000 jobs. Of those, 6,000 Profumo.
jobs will go through the planned sales of
UniCredit’s Ukraine unit and a stake in
He has had
Pioneer Global Asset Management. The a long time
bank last year lowered its annual profit
target to €5.3bn from €6.6bn and is to sort all
expected to have made a €2bn net profit
in 2015. According to the bank, its cost-
this out’
to-income ratio should fall from 61 per
cent to 50 per cent as a result of these
measures over the next three years.
Filippo Alloatti, senior analyst at
Hermes Credit, which invests in the
debt of UniCredit, describes the cost-
cutting targets as “ambitious” but the
overall plan as “disappointing”.
In particular, he argues that more
needs to be done to reduce the total of its
UniCredit’s traditional banking
foundations.
A majority of shareholders at the
annual meeting voted for a list of
independent board nominations
presented by funds association
Assogestioni over one put forward by
core shareholders, including Italy’s
banking foundations.
Yet, due to the terms of
UniCredit’s governance, the
independent slate only got one seat
on the board, meaning the core
shareholders’ nominees still won the
overwhelming majority of seats and
retain ultimate control.
Monday 11 January 2016
Expansion plan UniCredit’s decision to
buy weak Roman lender Capitalia in
2007 left it with a series of bad loans
Bad banks A Renzi government plan to
create a bad bank for non-performing
loans was opposed by Brussels
Blame game Officials in Rome believe
the major issue lies with the
management, not the bank’s structure
non-performing loans, at €84bn the
highest of any bank in Europe, that con-
tinue to eat into profitability.
“Just saying in 2018 it will be a lower
number, on a 3 per cent decline in cost of
risk, is not enough,” he says.
In a sign of how difficult it will be to
implement a sale of its lossmaking Aus-
trian retail bank has been shelved in
favour of a restructuring after the gov-
ernment in Vienna and unions opposed
the deal. Bawag, another potential
buyer which is owned by Cerberus,
demanded €1.6bn to take the lender off
UniCredit’s hands, say bankers involved
in the talks.
JPMorgan added to the gloom last
week, downgrading the bank to under-
weight on concerns that its 11.5 per cent
capital target — up from 10 per cent and
to be achieved by 2018 — was still too
low and put its dividend at risk.
Marta Bastoni, analyst at Barclays,
and one of the most bearish on the
stock, goes further. She says that
UniCredit needs to raise an additional
€7bn of capital, such as from a rights
issue. Mr Ghizzoni has repeatedly
denied that the bank needs to go to the
market for more capital.
Growing pains
Sustained recovery in the Italian econ-
omy and any subsequent easing of the
pressure on its non-performing loans,
could offer UniCredit some respite.
Despite Mr Alloatti’s reservations, the
boost would probably come from a fall
in the cost of risk. It would need non-
performing loan inflows and loan dete-
rioration to return to pre-crisis levels,
combined with stronger economic
growth, which is predicted to hit 1.4 per
cent this year.
Andrea Filtri, analyst at Mediobanca,
a Milanese investment bank in which
UniCredit is the largest shareholder,
argues that “with cost-cutting this rep-
resents UniCredit’s largest self-help
item”. The bank has already succeeded
in selling some of its bad loans.
Time, however, is not on UniCredit’s
side. Investors, including the bank’s
largest, Abu Dhabi’s Aabar, are
demanding returns, while most Italian
bank chief executives predict it will take
two to three years of economic growth
for the backlog of non-performing loans
to trickle down to pre-crisis levels.
The government of Prime Minister
Matteo Renzi has sought to speed the
process with a reform of corporate
bankruptcy procedures intended to
accelerate the time it takes to bring
soured loans to market. However, a gov-
ernment plan to create a bad bank, to
relieve the pressure on Italian institu-
tions, foundered in the face of opposi-
tion from Brussels.
People close to Mr Ghizzoni say he
knows his plan is “high risk” and that his
position is under threat.
“It specifically needs to turn around
in Italy and make cuts in Germany and
Austria. The next three months are cru-
cial. If they deliver, they are fine. If not,
Ghizzoni becomes chairman and they
get a new CEO,” says one senior banker.
The names of possible successors are
already circulating. They range from
Andrea Orcel, a one-time adviser to Mr
Profumo and now head of investment
banking at UBS, to Giampiero Maioli,
senior officer of Crédit Agricole in Italy,
who sits on the French bank’s executive
committee. Notably, they are both Ital-
ians who work for non-Italian banks.
Appointing a new chief executive will
not be enough to satisfy some critics
who believe a failure of the plan would
leave the way open for a radical
shake-up. Some board members admit
that the tight capital position — the bank
remains “a little bit too thinly capital-
ised”, says one — means that if restruc-
turing costs are high there may need to
be more disposals or even an acquisition
to dress up a capital increase.
In Rome, the view among senior offi-
cials is that if there is a problem with
UniCredit it is the management. No sen-
ior official who spoke to the Financial
Times would accept the idea, held by
some senior bankers, that if the Ghiz-
zoni plan fails it could presage a
break-up — one that would deprive Italy
of its only globally significant financial
institution.
Additional reporting by Martin Arnold
Monday 11 January 2016 ★ FINANCIAL TIMES 7
8 ★
MONDAY 11 JANUARY 2016
Bad luck for local backers
of Portugal’s ‘good bank’
Investors had to pay but the restructuring of Novo Banco is no model
Investor claims of mistreatment at the
hands of Portugal as it deals with Novo
Banco, a supposed “good bank” created
in 2014 from the ruins of Banco
Espírito Santo, illustrate the tension
that lies at the heart of the measures to
deal with problem banks.
Voluminous rules have been intro-
duced in the years since financial insti-
tutions began to fail and governments
were forced to rescue them. Their point
has been to change the approach to a
simple question: who pays when a bank
is bust? The idea is that never again
should it be the taxpayer, and never
again should the relationship between
an indebted government and its banks
threaten to bring both down. Instead,
investors must be forced to take their
share of the pain when the bets made
by institutions go sour.
To achieve those aims the EU has
started down the path to banking
union. An important step was taken
with the creation of the Single Resolu-
tion Board, which will decide when a
bank is failing and how to resolve the
problem of when there are more debts
than assets.
Underlying the approach, rightly, are
two broad principles. Whatever is done
should not spread panic through the
financial system, and investors who
lend to a bank should suffer losses in a
predictable fashion when it cannot pay
them back in full.
It is the latter point that has enraged
investors in Novo Banco. Just before
the SBR regime began at the start of the
year, the Portuguese authorities moved
to impose losses on some, but not all
lenders in the new institution. That
meant that some senior bondholders
will lose money while equally senior
peers will not.
This suggests that in a system with
thousands of banks still governed by
more than two dozen national regula-
tors, those two key principles may
Facebook’s reasonable
vision of a wider web
States should not block the Free Basics app, despite its limitations
The internet has revolutionised the
way we live and work but some 4bn
people still lack access to it. One might
assume that any initiative to make the
world wide web truly global would
therefore be welcome — but the CEO of
Facebook, Mark Zuckerberg, has
learnt that this is not always the case.
The social network pioneer has come
up with a simple project. It has part-
nered with local phone operators
across 37 developing countries to offer
free use of the internet via a smart-
phone. Under the scheme, access is
limited; the individual will only be able
to use a simplified Facebook app, view-
ing restricted content on news, weather
and health. If they like what they see,
customers can buy data services from
their network providers.
Facebook’s overall business model
has always been about providing a free
service for something in return, be it
user data or advertising space. Free
Basics, its new venture, is an extension
of this strategy to attract new custom-
ers in developing markets. As the
number of users of the social network
in the US and Europe reaches satura-
tion point, Facebook is eager to tap into
the billions of potential clients in Asia
and Africa.
Mr Zuckerberg, however, also likes
to see his company as a force for good —
and it is this aspect of the project that
has generated suspicion. The official
philosophy behind Free Basics is to
introduce to the internet people who
have previously been unconnected,
bridging the digital divide. However,
critics argue that there are more
straightforward ways to help than
offering a limited, Facebook-centric
version of the online world. Google, for
instance, is planning to release thou-
sands of balloons into the stratosphere
to enable it to establish a wireless net-
work in even the most remote places.
Opponents also complain that Free
sometimes come into conflict. The
challenge is to balance them without
the process of resolution itself creating
fresh panic.
Ordinary depositors must be sacro-
sanct to avoid queues forming at cash
machines. Retail investors pose a more
intractable problem. The suicide of a
pensioner whose life savings were swal-
lowed by the reorganisation of Banca
Etruria, a troubled Italian lender,
shows the stakes in what must be both
a financial and political process.
Looking to the future, regulators will
soon be armed with greater sanctions
to pursue mis-selling of investments
when the next great bundle of rules —
Mifid 2 — comes into force at the start
of 2017. The more dangerous acro-
nymic debt securities created in recent
years have also, sensibly, been declared
off-limits to retail investors.
Meanwhile the SBR will give the new
single regulator greater powers to
impose a more uniform process for
forcing losses on to investors when
debts cannot be repaid.
For now, Portugal’s rationale at Novo
Banco is partly to protect retail inves-
tors and thus underpin not only its
standing with the public, but that of
other local banks. Losses were less pre-
dictable than the investors now com-
plaining would like. However an
important point is to realise that the
bonds in question are governed by local
law, which can be changed by the Por-
tuguese government. They are not, in a
practical sense, pari passu with the for-
eign law bonds left untouched.
The investors may not like it and
some banks may find they face higher
borrowing costs as the risks of lending
to them are reassessed. Portugal’s
action is also no model for the future.
Markets, however, have been
reminded of the need for homework
and the potential for losses, which
counts as progress.
Basics compromises two key principles
of the internet: freedom and openness.
Providing some websites for free but
others at a cost is deemed a breach of
the doctrine of net neutrality since all
services are not treated equally by
broadband providers. Tech companies
worry that if consumers opt to stay on
the free Facebook app, this would in
future give the corporation a monopoly
over access to potential customers.
Two governments have already
interrupted Free Basics. In December,
internet activists persuaded India’s
national telecoms regulator to order a
temporary suspension and initiate a
public consultation on its future. The
same month, the Egyptian government
cut off more than 3m of its citizens.
The fact that a profitmaking entity is
offering internet services to developing
nations should be a cause for optimism,
not concern. Other tech companies are
at liberty to emulate Free Basics, offer-
ing their own services. Besides, as the
number of users rises, the cost of
broadband is likely to fall, making use
of the wider internet increasingly
affordable.
Enlarging internet access is vital for
economic development. There are
many nations in Africa and Asia with
strong interest in this new public util-
ity. The fact that it is also of benefit to a
particular company is no reason to bar
its involvement. In Kenya, for example,
the creation of mobile-phone payment
system by Vodafone has transformed
the country’s financial infrastructure.
National regulators need to monitor
moves made by large internet players,
especially in nascent markets. Free
Basics has its limitations. It is not going
to bring about a transformation in web
access on its own. For now, however, an
extension of limited internet access is
better that none. If customers flock to it
with eyes wide open, it could be the
first step to a truly global internet.
FINANCIAL TIMES
Nord Stream’s vital role in EU energy needs
Sir, The recent debate regarding Nord
Stream 2 is welcome but Alan Riley
(Letters, January 6) and Mikhail
Korchemkin (Letters, December 29)
provide some flawed arguments.
As Jonathan Stern (Letters,
December 31) pointed out, it should be
up to private investors to decide
whether it makes commercial sense for
them to take on the financial risk to
commit to the construction of a
pipeline such as Nord Stream 2. The
European Commission’s role is to
ensure that all projects comply with all
applicable EU legislation.
The Third Energy Package is
designed to regulate the EU’s internal
energy market. It applies from the
moment when gas reaches EU shores.
The logical (and legally sound)
conclusion is that the Third Energy
Package does not apply to an offshore
import pipeline like Nord Stream but
only to connecting pipelines after the
Machine-like humans are
not a new phenomenon
Sir, I was intrigued by Sarah
O’Connor’s column “Leave robotic jobs
to robots and improve humans’ lives”
(January 6). Back in 1985 when I was
studying for an MSc in computer
science at Birkbeck College, London
University, a lecturer told my class the
following story.
A bright student is sent for a year’s
placement with a lightbulb
manufacturing company. He discovers
that the most labour-intensive part of
the manufacturing process is fitting the
elements to the lightbulbs. As this
intricate work is too difficult for a
machine to do, hundreds of women are
employed in this repetitive work. The
student designs a robot to carry out
this work. On returning to his research
institute he reports to his professor,
expecting to be praised for his
humanitarian initiative. Instead the
professor asks him: “Why did you ask a
robot do such boring work?”
From the example of the warehouse
in Ms O’Connor’s article, that “humans
are still better than machines at
picking up differently sized objects”, it
appears that in the last 30 years we
have merely progressed from misogyny
to misanthropy.
Peter McLoughlin
London N2, UK
Productivity demands
good infrastructure
Sir, In analysing the UK’s intractable
manufacturing problems, the Financial
Times offers national responsibility a
convenient “get out of jail card” by
stating that “the dwindling export of
goods and the struggles in
manufacturing can be traced back to
external factors” (“Britain’s struggle to
forge a balanced economy”, editorial,
January 7).
This is patent nonsense. It is already
widely acknowledged that there is a
productivity problem in British
industry. If that were not enough, just
take a train ride across equivalent
industrial areas in Germany and
England. In the former one sees
hundreds of small to medium-sized,
modern industrial units, all engaged in
production of goods which the outside
world clamours for. In the latter, sadly,
the predominant view is of crumbling
The politicking
that nurtured
French Islamism
Book review
By Anne-Sylvaine
Chassany
Terreur dans l’Hex
l’Hexagone:
Genèse du Djihad
Français
By Gilles Kepel with
Antoine Jardin
(Editions Gallimard, €21)
Letters
gas has reached the shore. This is the
way that all other offshore import
pipelines to the EU are treated.
Nord Stream 2 will increase the EU’s
security of energy supply and create
greater flexibility in gas supply within
the single energy market, at no cost to
Europe’s taxpayers. The new gas supply
will induce expansion of gas
infrastructure and interconnection,
bringing the benefits of competitive gas
markets to more consumers in more
countries within the EU.
The EU will need to address an
important gas import gap in the
coming years. This gap is caused by
both the drop in EU indigenous
production, especially in the North Sea,
and a rise in demand. Nord Stream 2
could be a substantial part of the long-
term solution to meet this additional
import requirement. Other suppliers
and sources such as LNG will
undoubtedly play their role too.
Boring work . . . for robots
Victorian back yards roamed by
grease-stained Alsatians and serving
factories that are clearly down at heel.
One cannot have good productivity
without investment and good
infrastructure. Britain needs to harness
its genius to make high quality,
competitive products that the world
wants. At the moment, apart from
exceptions such as Jaguar Land Rover
(resuscitated and owned by Indian
entrepreneurs), this is not happening.
Governments must take significant
blame.
Peter Mahaffey
Sasbach, Germany
Sir, Is the “manufacturing” sector a
useful term any more? (Editorial,
January 7.) Sentimentalists pine about
manufacturing as the predominating
sector with halcyonic nostalgia for a
bygone era. In this way they rhyme
with the aspirations of those who
lamented the relative demise of the
agricultural sector in favour of
manufacturing in the 18th and 19th
centuries.
However, many modern economists
still give weight to this categorisation.
Some say that it is a more capital
intensive sector and thus more likely to
produce higher paid jobs when
compared with the lower capital
intensive service sector typified by
hamburger flipping restaurants. Others
laud the manufacturing sector because
its physical products are more
tradeable and thus add greater
economic value through the laws of
comparative advantage.
Digitisation is eroding these
distinctions. Why is there an economic
difference between “building” a car and
“building” software? Digitisation is the
Professor Gilles Kepel, who has
documented over a quarter of a
century the rise of radical Islam in the
banlieues, is angry. France, he says,
has been struck more brutally than
other western countries by
homegrown jihadis because the
country’s elites chose to ignore the
legitimate demands of its large
population of north African descent.
Sitting in his claustrophobic office at
Sciences Po, Paris, he sighs: “We’ve
lost at least 20 years.”
Kepel traces the causes of the Paris
attacks of November 13 — in which
extremists killed 130 people in a
concert venue, bars and restaurants,
and the murder a year ago of staff at
satirical magazine Charlie Hebdo,
police officers, staff and shoppers at a
Jewish supermarket — back to 1983.
This is when dozens of young men of
north African origin staged a protest
march from Marseille to Paris
following a series of racist acts.
When François Mitterrand, then
president, received them at the Elysée
Palace, their number had swollen to
100,000. They wanted equality and a
bigger role in democratic life. But
instead of facilitating their political
integration, the Socialist leader
focused only on the question of
racism. “We could have had a
generation of role models who would
have led the way,” Kepel tells me.
Another opportunity was missed
after riots in the Parisian banlieue of
Clichy-sous-Bois in 2005. Sparked by
the accidental deaths of two teenagers
as they hid from police in a power
EU policy should encourage
investments in new infrastructure
and welcome competition between
routes, sources, and suppliers. Russian
gas makes up only about 6 per cent
of the EU’s entire energy needs and has
to compete with other gas exporters,
oil, coal, nuclear energy and
renewables. Nord Stream gas plays a
vital part in the EU’s efforts to meet its
ambitious climate goals over the next
decades.
Nord Stream is a proven, stable and
state of the art infrastructure. It is the
shortest route for gas from the major
fields of western Siberia to Europe and
the cheapest way to secure reliable gas
supplies for European consumers.
Nord Stream 2 is part of the solution to
Europe’s energy problems.
Ulrich Lissek
Head of Communications,
Nord Stream 2,
Zug, Switzerland
ultimate global trading medium as
transaction costs fall towards zero and
delivery is instantaneous. Furthermore,
digitisation will lead to cheap, on
demand, bespoke “manufacturing”. The
term “manufacturing” is too broad and
too generic to be meaningful. Take
Apple, for example. The
“manufacturing” element of this
behemoth takes a minuscule proportion
of the profits of the company. The
economic added value is derived
through its branding and creativity.
If we want to develop policies that
produce higher paid, higher skilled
jobs, we need to review what we
measure.
Jonty Crossick
London E1, UK
Misleading messages on
management research
Sir, In his Soapbox article “What is the
matter with management research in
the UK?” (Business Education, January
4), Stuart Macdonald criticises the
UK’s management research initiative,
the Advanced Institute of Management
Research, which ran from 2003–2012.
Mr Macdonald confuses several issues,
but his key underlying messages seem
to be that there was a lack of
accountability and openness in the way
contracts were disbursed through AIM,
and that there was a severe lack of
public, formal or even informal
evaluation. Both messages are totally
misleading.
Individual fellows contracts were
awarded on a competitive basis —
through formal peer review and
interview — and the quality of the
individual fellow’s research was subject
to a formal review on completion. The
overall AIM initiative was overseen by
an executive steering committee,
which met quarterly and consisted of a
majority of practitioners and
policymakers. Finally, the Economic
and Social Research Council
commissioned Technopolis to
undertake a full evaluation of the AIM
initiative. The executive summary can
be found on the ESRC website. All AIM
publications are also available through
the British Library MBS portal.
Prof Robin Wensley
Prof Andy Neely
Former Deputy Directors,
Advanced Institute of Management
Research (AIM)
station, troubles flared when officers
mistakenly fired tear gas into the local
mosque. French elites refused to see
that religion had been the catalyst for
the riots, and the reason they spread
to other regions, writes Kepel.
Islam, he says, became an
“irrepressible identity marker” amid
the economic and social hardship,
discrimination and unemployment of
the banlieues. Salafism, an ultra-
conservative version of Sunni Islam
whose values he views as incompatible
with France’s republican and secular
values, gained ground. Newly formed
Salafist communities settled in
deserted rural areas, such as Artigat,
southwestern France — where a Syrian
emir radicalised several French-born
terrorists, including Mohammed
Merah, who shot Jewish children in
Toulouse in 2012.
Kepel, who has written much about
political Islam in the Arab world,
notes that 2005 was also the year Abu
Musab al-Suri, a Spanish-Syrian
militant, published The Global Islamic
Resistance Call — a guide to what Kepel
calls “third-generation jihadism”, a
bottom-up terror strategy that
succeeded the top-down strategy of al-
Qaeda and inspired the recent attacks.
Nicolas Sarkozy, interior minister
during the Clichy riots, failed to grasp
the nature of the threat. He sought,
instead, to capitalise on the parallel
rise of nativism by leaning to the right,
capturing votes of sympathisers of the
far-right National Front in the 2007
presidential campaign.
The left is also at fault, says Kepel,
Monday 11 January 2016
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
Investors — steer clear
of the ‘active’ perpetual
motion machine
Sir, Yves Choueifaty (“The role of
active management is to define the
benchmark”, FTfm, January 4) seeks to
justify active management on the
argument that, if all investment was
passive, capital allocation would
become grossly inefficient and “the
global economy would implode”.
This argument neglects the role of
asset allocators. If a growing prevalence
of passive management causes market
inefficiencies to arise, asset allocators
will place capital with skilled managers
who are able to exploit those
inefficiencies. And, logically, this
process should continue until the
inefficiencies are competed down to
the level of skilled managers’ fees (a
point inspired by the work of
academics Jonathan Berk and Richard
Green).
Hence, the existence of a
competitive market for capital
allocation implies, first, that the
investment world will never be 100 per
cent passive; second, that investors
should not expect even skilled
managers to beat the market
consistently; and third, that the
minority of truly skilled investment
managers should expect to get rich.
This sounds very much like the world
in which we live.
Long-term investors should have no
fear that they are “abandoning their
responsibilities” if they invest in a
rational way: the market can look after
itself. And they should keep well clear
of the “active” perpetual-motion
machine that serves to transfer capital
from investors to investment
managers.
David Aspinall
Executive Chairman,
Aspinalls Group,
London WC2, UK
Now raise the standards
for Chinese policymakers
Sir, Regarding Fu Ying’s comments on
the American world order (“The US
world order is a suit that no longer fits”,
January 7): I agree with her that the US
has made a number of policy errors
and could have handled China’s rise
more adeptly. I also agree with her
conclusion that it is not enough for
China to criticise, but that it must also
propose solutions and communicate
with the world more clearly.
Given the recent global market
turmoil emanating from China’s
slowing economy and gyrating stock
markets, an excellent place to start
would be clear and transparent
communication about the Chinese
government’s view of the Chinese
economy and its proposed plans and
policies to deal with the slowdown.
Because of the size and importance of
the Chinese economy to the world, its
economic policymakers should be held
to the same high and exacting
standards that Janet Yellen, chair of the
Federal Reserve, or Mario Draghi,
president of the European Central
Bank, are subject to.
Daniel Calto
New York, NY, US
COMMENT ON FT.COM
Isis and the war for oil
Oil and power are inseparably linked, as
shown by events in Syria and northern Iraq
blogs.ft.com/nick-butler
who wrote the book with Antoine
Jardin, a sociologist. After ousting Mr
Sarkozy from the Elysée in 2012, with
the support of Muslim voters,
President François Hollande failed to
tackle the problems of the banlieues.
Meanwhile, France’s assertive stance
in the Middle East — opposing both
Isis and Syrian President Bashar al-
Assad — has encouraged Muslims to
travel to Syria and join the Islamist
group, augmenting the risk of French
militants returning to launch terror
attacks, he writes.
Kepel’s book (the hexagone of the
title is a colloquial reference to the
shape of France) was an instant
success: about 100,000 copies have
been sold since publication late last
year, he says. Fascinating, detailed
accounts of how small towns have
become hotbeds of radical Islamism
make the book appealing to readers
beyond France seeking to understand
homegrown jihadism — although it
requires an understanding of French
as there are no immediate plans to
publish elsewhere.
There is one ray of optimism in the
book. The most recent attacks were so
indiscriminate that they have unified
French society instead of dividing it.
“Even the toughest Salafists felt
French that day,” Kepel says. This may
herald the end of third generation
jihadism, he suggests, providing the
government with a new opportunity to
fix the deep fractures within French
society — before the fourth emerges.
The writer is the FT’s Paris bureau chief
Monday 11 January 2016
BUSINESS
Lawrence
Summers
O
ften markets are volatile at
the end of a year and then
settle down as a new year
begins. Not this year. US
and European markets
closed lower on Friday after a very
rough week despite a strong US jobs
report. The week saw dramatic declines
in China’s stock market and currency.
Oil prices fell even in the face of major
tension between Iran and Saudi Arabia.
A week when bad market news makes
the front page raises two questions. How
much should forecasters and policy-
makers look to speculative markets as
indicators of future prospects? And how
alarmed should they be about the pros-
pect of a global slowdown?
Markets are more volatile than the
fundamentals they seek to assess. Econ-
omist Paul Samuelson quipped 50 years
America’s election year terror risk
AMERICA
Edward
Luce
T
hey used to say one man’s
terrorist is another man’s
freedom fighter. Nobody
thinks like that any more.
Even the most gung-ho
interventionist would be hard pressed
to market freedom fighters from Syria.
Nowadays we see Muslim refugees as
potential terrorists. Almost 15 years on,
US society is as fearful of terror strikes
as it was after the 9/11 attacks. It is little
use brandishing statistics. Fear is a ser-
pent with a mind of its own. Ten months
before a US presidential election, terror-
ism overrides the economy as the
voter’s main worry. Society’s darker
instincts are growing.
The past 72 hours offer a snapshot. On
Thursday, a nut with a gun tried to shoot
a police officer in Philadelphia. The
officer survived. The assailant, a US-
born African-American, claimed to be
acting in the name of Isis. Cable news
channels went into “Isis terror” over-
drive. None dwelled on any of the 280
actual homicides in Philadelphia last
year. Two men, both of Iraqi Palestinian
origin, were arrested in California and
Texas on suspicion of having ties to Isis.
Both came to the US as refugees. Mean-
while, a prison corrections officer in Cal-
ifornia was released on bail after attack-
ing Muslim men praying in a park yell-
ing “Allah is Satan”. It followed a surge
of attacks on US mosques and Muslims
in the past six weeks.
Each in isolation is a minor event.
Taken together — and coupled with
ubiquitous media coverage — they
prime the public for the next terror
assault.
Both sides of the US political divide
are also stoking it. President Barack
Obama does so inadvertently. When-
ever he cites terrorism as a reason to
Free capital flows can put economies in a bind
EUROPE
Wolfgang
Münchau
W
hen Margaret Thatcher
took power in Britain in
1979, one of her first
decisions as prime min-
ister was to scrap capi-
tal controls. It was the beginning of a
new era and not just for Britain. Free
capital movement has since become one
of the axioms of modern global capital-
ism. It is also one of the “four freedoms”
of Europe’s single market (along with
unencumbered movement of people,
goods and services).
We might now ask whether the
removal of the policy instrument of cap-
ital controls may have contributed to a
succession of financial crises. To answer
Heed the fears of the financial markets
ago, “the stock market has predicted
nine of the last five recessions.” Former
Treasury secretary Robert Rubin was
right when he would regularly reassure
anxious politicos in the Clinton White
House that “markets go up, markets go
down” on days when a market move cre-
ated either joy or anxiety. The best exec-
utives manage their companies with an
eye to long-run profitability, not the
daily stock price. And policymakers do
best when they concentrate on strength-
ening economic fundamentals rather
than on daily market fluctuations.
Still, since markets are constantly
assessing the future and aggregate the
views of a huge number of participants,
they often give valuable warning when
conditions change. Studies have shown
that prediction markets do a better job
of predicting elections than pollsters.
Hollywood studios use such markets to
judge the likely success of movies.
Policymakers who dismiss market
moves as reflecting mere speculation
often make a serious mistake. Markets
understood the gravity of the 2008 cri-
sis well before the Federal Reserve.
They grasped the unsustainability of
fixed exchange rates in Britain, the UK,
tighten gun control, gun sales surge.
Since the attacks in San Bernardino last
month, which took 14 lives, US gun sales
have shot to an all-time high. In Decem-
ber there were 3.3m background checks
on individual gun purchasers, which
was almost a fifth higher than the previ-
ous monthly record.
Gun manufacturers have enjoyed a
golden era under Mr Obama. Americans
are buying almost twice as many fire-
arms as when he took office, the New
York Times has reported. The share
price of Smith & Wesson and Sturm,
Ruger, the two largest gun companies,
have risen more than 900 per cent
apiece since he took office, against 147
per cent for the Standard & Poor’s index
as a whole. Many Americans are buying
firearms because they fear the window
is closing. They are almost certainly
mistaken. Mr Obama’s modest propos-
als will make little difference, even if
Consider the couple in San
Bernardino. They had
enough firepower to pull off
a far larger slaughter
they survive a hostile Congress.
Many, though, are also thinking of
their own security. Public support for
tighter gun control has actually fallen
since the San Bernardino and Paris ter-
ror attacks, in spite of the fact that the
terrorist couple in California found it so
easy to acquire an arsenal of weapons.
Mr Obama does himself few favours by
refusing to use the term “radical Islam-
ist terrorism”. He sticks to “violent
extremism”, which fuels the perception
— not just on the right — that his admin-
istration is imprisoned by political cor-
rectness. The blander the language, the
more Orwellian it sounds.
Republicans, by contrast, are con-
sciously amplifying public fear. Though
America will take only 10,000 Syrian
refugees in 2016, more than half of US
states have said they will refuse to host
any. Donald Trump, the Republican
that, it is instructive to revisit a debate
of three decades ago, when many in
Europe invested their hopes in a combi-
nation of free trade, free capital mobil-
ity, a fixed exchange rate and an inde-
pendent monetary policy — four poli-
cies that the late Italian economist,
Tommaso Padoa-Schioppa, called an
“inconsistent quartet”.
What he meant was that the combina-
tion is logically impossible. If Britain,
say, fixed its exchange rate to the Deut-
schmark, and if capital and goods could
move freely across borders, the Bank of
England would have to follow the poli-
cies of the Bundesbank.
In the early 1990s, Britain put this to
the test, joining the single European
market and pegging its currency to Ger-
many’s. The music soon stopped; after
less than two years in the exchange-rate
mechanism, sterling went back to a
floating exchange rate. Other European
countries took a different course, sacri-
ficing monetary independence and cre-
ating a common currency. Both choices
★ FINANCIAL TIMES
Comment
Mexico and Brazil while the authorities
were still in denial, and saw slowdown
or recession well before forecasters in
countless downturns. While markets do
sometimes send false alarms and should
not be slavishly followed, the conven-
tional wisdom essentially never recog-
nises gathering storms.
The Economist reports that, looking
across all major countries over the past
several decades, there were 220
They assess the future and
aggregate the views of
many participants — often
giving valuable warning
instances in which a year of positive
growth was followed by one of contrac-
tion. Not once did International Mone-
tary Fund forecasts anticipate the reces-
sion in the April of the growth year,
Signals should be taken seriously
when they are long lasting and coming
from many markets, as with current
market indications that inflation will
not reach target levels within a decade
Matt Kenyon
were internally consistent. What has
changed since then is the rising impor-
tance of cross-border finance. Many
emerging markets do not have a suffi-
ciently strong financial infrastructure of
their own. Companies and individuals
thus take out loans from foreigners
denominated in euros or dollars. Latin
Unless you accept financial
instability, you may have to
tell foreigners you do not
want their cash
America is reliant on US finance, just as
Hungary relies on Austrian banks. With
the end of quantitative easing in the US
and rising interest rates, money is drain-
ing out of dollar-based emerging mar-
kets.
Theoretically, it is the job of a central
bank to bring the ensuing havoc to an
in the US, Europe or Japan. It is espe-
cially ominous when markets fail to
rally on what should be good news.
It is conceivable that Chinese develop-
ments reflect market psychology and
clumsy policy responses, and that the
response of world markets is an exam-
ple of transient contagion. But I doubt it.
Over the past year, about 20 per cent
of China’s growth as reported in its offi-
cial statistics has come from its financial
services sector, which is now about as
large relative to gross domestic product
as in Britain, and Chinese debt levels are
extraordinarily high. This is hardly a
case of healthy or sustainable growth.
In recent years, China’s growth has
come heavily from massive infrastruc-
ture investment; China poured more
cement and concrete between 2011 and
2013 than the US did in the whole of the
20th century. This too is unsustainable.
Even if it is replaced by domestic serv-
ices, China’s contribution to demand for
global commodities will fall.
Experience suggests that the best
indicator of a country’s future economic
prospects is the decisions its citizens
make about keeping capital at home or
exporting it abroad. The renminbi is
end, which standard economic theory
suggests it should be able to do so long as
it follows a domestic inflation target.
But if large parts of the economy are
funded by foreign money, its room for
manoeuvre is limited — as the French
economist Hélène Rey has explained.
In the good times, Prof Rey finds,
credit flows into emerging markets
where it fuels local asset price bubbles.
When, years later, liquidity dries up and
the hot money returns to safe havens in
North America and Europe, the country
is left in a mess. There is very little the
central bank can do to moderate inflows
and outflows of foreign money.
Unless you accept financial instability
as inevitable, then, you may soon be
thinking about imposing capital con-
trols of a particularly stubborn variety
— the kind that involves telling foreign
investors you do not want their cash.
The point is to prevent hot money flow-
ing in during the good times, and to stop
it from draining out in the bad times.
This is not yet a subject of polite con-
under pressure because Chinese citi-
zens are eager to move their money
overseas. Were it not for the substantial
recent depletion of China’s reserves, the
renminbi would have fallen further.
Traditionally, international develop-
ments have had only a limited effect on
the US and European economies
because they could be offset by mone-
tary policy actions. Thus, the US econ-
omy grew robustly through the Asian
financial crisis as the Fed brought inter-
est rates down. With rates essentially at
zero in the industrial countries, how-
ever, this option is no longer available
and foreign economic problems are
likely to have much more of a direct
effect on economic performance.
Because of China’s scale, its potential
volatility and the limited room for con-
ventional monetary manoeuvres, the
global risk to domestic economic per-
formance in the US, Europe and many
emerging markets is as great as any time
I can remember. Policymakers should
hope for the best and plan for the worst.
The writer is Charles W Eliot university
professor at Harvard and a former US
Treasury secretary
frontrunner, has called for a pause on all
Muslim immigration “until we can fig-
ure out what is happening”. He has also
floated the idea of a national database of
Muslims.
Ted Cruz, who looks likely to win the
first presidential caucus in Iowa next
month, has hired an analytics firm to
trawl social media for voters with signs
of “neuroticism”. Like most of his rivals,
Mr Cruz misses no chance to hype up
the terror threat. “We need a retroactive
assessment of all refugees from high-
risk countries who have been admit-
ted,” said Mr Cruz after the Iraq-born
refugees were arrested for suspected Isis
links. Little wonder public opinion has
been shifting. Only 38 per cent of Amer-
icans think the US should accept any
Muslim Syrian refugees (56 per cent
would accept Syrian Christians). More
Americans support sending US ground
troops to fight Isis than oppose it.
Conventional wisdom tells us that
neither Mr Trump nor Mr Cruz is likely
to be the nominee. It also says that if
either pulled it off, they would stand no
chance of defeating Hillary Clinton. But
seasoned observers have been wrong
about the Republican race since it
began. Here is another scenario. One or
other firebrand takes the nomination.
They struggle to match Mrs Clinton in
the polls. Then the election is upended
by a Paris-style terror attack — that
dreaded “October surprise”. If you think
this far-fetched, consider the couple in
San Bernardino. They had enough fire-
power to pull off a far larger slaughter.
The left worries that intelligence
agencies are sucking up too much data,
jeopardising freedom. They ought to be
equally worried about the lack of capac-
ity and legal authority to sift the data
and join the dots. The right worries that
US Muslims are a fifth column. By goad-
ing such fears they make law-abiding
citizens feel unwelcome and fuel the
alienation that breeds terrorists. This is
what Isis wants. At any time public fear-
fulness is troubling. In an election year
we should be especially wary.
edward.luce@ft.com
versation among policymakers. Central
bankers have instead been peddling a
concept known as macroprudential reg-
ulation, a cuddly version of capital con-
trols. The idea is to tweak incentives:
when a housing bubble builds up, the
central bank imposes some ceiling on
lending, for example by capping loan-
to-value ratios. It might also ask its gov-
ernment to raise stamp duties or other
transaction taxes. Spain tried such
measures during the pre-crisis years. It
did not stop the build-up of one of the
biggest house bubbles in history.
More drastic action, such as leaving
the euro or imposing capital controls,
might have prevented the calamity.
Spain did neither but before long some-
one surely will. Free movement of capi-
tal surely cannot be sustained as a point
of principle when the economic costs
are so devastating. Capital controls were
common in our pre-Thatcherite past.
They might come back.
munchau@eurointelligence.com
9
Ambiguous
health warnings
— a danger with
no safe limit
OPINION
Anjana
Ahuja
T
he UK government has
served up new guidelines
on safe drinking during dry
January, when many forgo
the pleasures of booze as
penance for a very wet December. While
lower limits are clearly needed given the
growing evidence of the toxic health
effects of alcohol, the official advice is
disappointingly confusing — we have
been poured a vinegary merlot instead
of a well-chosen pinot noir.
The principal changes are these: the
suggested upper limit is 14 units of alco-
hol a week for both sexes, compared
with the 1995 guidelines of 21 for men
and 14 for women, and there is now no
safe lower limit. This means that even
small amounts of alcohol are bad for
health. That gives us our first problem:
the two central messages, though well-
intentioned, are inherently contradic-
tory.
The old wisdom that a glass of red
wine a day combats heart disease is jetti-
soned; newer science suggests that alco-
hol’s role as a carcinogen outweighs any
cardiovascular advantage. This has led
the chief medical officers of England,
Wales, Scotland and Northern Ireland to
declare: “There is no justification for
recommending drinking on health
grounds.” Saving units for a weekly
blowout is definitely not OK, either.
The proposed limit, currently open
for consultation, of 14 units a week is
designed to limit a person’s chance of
dying from an alcohol-related condition
to less than one per cent. While heavy
drinking has long been known to cause
liver damage, studies on cancer have
recently entered the reckoning. Accord-
ing to the charity Drinkaware, more
than a fifth of alcohol-related deaths are
due to cancer. The exact mechanism is
unclear, but we know that alcohol
breaks down into a substance called
acetaldehyde, which can cause genetic
mutations.
It is worth looking at one cancer in
detail. Take a woman’s risk of develop-
The old wisdom that
a glass of wine a day
combats heart disease
has been jettisoned
ing breast cancer: out of 1,000 women
drinking up to 14 units weekly, about
126 will develop the condition, accord-
ing to data from Cancer Research UK
and Sheffield University. What happens
if those 1,000 women are instead teeto-
tal? The number of cases falls — not to
nearly zero but to 109. In other words,
teetotal women already run a substan-
tial risk of getting breast cancer because
the biggest risk factor is being a woman.
Adding wine to the equation raises that
default risk slightly.
This should, incidentally, be the
moment to reconsider units, those
nightmarishly elastic and outdated
measures. A default glass of wine is now
175ml, and therefore very likely to be
more than two units. There ought to be
public debate about changing units to
grams of alcohol, as some have already
suggested. Another health aspect often
overlooked is the calories: a standard
glass of wine contains about 160 calo-
ries, about the same as a slice of Madeira
cake. Slapping the calorie content on
wine and beer labels — remember, this
happens routinely for food — may use-
fully deter those Sauvignon-sippers who
wish to remain svelte. These criticisms
are not meant to trivialise the issue.
Alcohol is a drain on the public purse,
with its harms adding up to an esti-
mated £21bn to society annually (in
England alone), in terms of costs to the
NHS, crime and missed working days.
There is ambiguity in this public
health message, and this is dangerous
when the public doesn’t necessarily
want to hear it in the first place. Even
healthcare professionals have been
struggling to explain the new guidance.
If chief medical officers are to be true to
the scientific evidence, they should
remind us that alcohol is a known car-
cinogen (as classified by the World
Health Organisation), there is no safe
limit and that anything other than absti-
nence carries its own perils.
Then they should remind us that our
lives are full of pleasures and dangers
that we must weigh up for ourselves —
and that we all have a 100 per cent risk
of dying from something.
The writer is a science commentator
10
Courses build on the appeal of bricks and mortar
As jobs in banking fall out
of favour, programmes that
focus on real estate are
becoming more popular,
writes Anna Nicolaou
W
hen David Gleitman fin-
ished university in
2009, he, like many
young finance gradu-
ates, wanted a flashy job
in investment banking.
But the industry was collapsing just as
he scoured his home town of Munich, in
Germany, for work. Instead he ended up
with an internship at an American real
estate company. Four years later he was
“hooked” and signed up for an MBA in
New York to study the subject.
Mr Gleitman is not unusual: the finan-
cial crisis sent ripples of change through
the global jobs market, where seven
years after the crash the battered bank-
ing industry remains out of vogue
among MBA graduates. In its place real
estate, the scapegoat for the great reces-
sion, has soared in popularity among
students as the market heats up and
more jobs open in the sector.
Investment yields and asset values for
commercial property have surpassed
2007 levels, helped by years of ultra low
interest rates and tight supply. Real
estate investment trust, or Reit, prices
climbed 80 per cent between 2010 and
2014, thanks to strong demand for
offices and urban apartments, and
higher returns when compared with
bonds.
This boom has fuelled “huge” interest
from students, says Nancy Wallace, pro-
fessor of real estate at the University of
California, Berkeley’s Haas School of
Business. “They’re fleeing bank-
ing . . . real estate is cyclical, and MBAs
follow cycles really closely,” she says.
Only 10.6 per cent of graduates from
the world’s top 10 business schools are
choosing a career in banking compared
with 17.4 per cent in 2008. The 6.8 per-
centage point drop translates into a 40
per cent difference in banking’s popu-
larity, according to a Financial Times
analysis. At London Business School
and Harvard Business School, its pop-
ularity has fallen 52 per cent.
★ FINANCIAL TIMES
Job insecurity, long hours and gloom
surrounding the industry have steered
the brightest students away from what
was once an assembly line into banking
and towards more entrepreneurial
work. Technology companies such as
Google and Facebook have usurped
Goldman Sachs as a dream employer,
but real estate has also emerged as an
alternate path for a simple reason: there
are jobs.
“First and foremost, people see that
there are jobs in it now and . . . the abil-
ity to make a decent amount of money,”
says Alex Lebowitz, an MBA student at
New York University. “People are seeing
that you can go into real estate and do
really well, and work on interesting
things that aren’t just working in a
bank.”
‘People see that there are
jobs in [real estate] now
and . . . the ability to make
decent money in it’
Job prospects are often a determining
factor for MBAs, many of whom shell
out tens of thousands of dollars and
forego full-time work to complete the
degree. Observers note that in a world of
record-low interest rates and a volatile
stock market, property has become a
more legitimate asset class to institu-
tional investors. What was seen in 2006
as clunky and illiquid, riskier than
stocks or bonds, is now a “primary asset
class”, says Stephen Shapiro of Jones
Lang LaSalle’s New York capital mar-
kets group.
This reputation is spurring a profes-
sionalisation of the industry and widen-
ing the scope of companies in the field.
“A lot more pension funds and sovereign
wealth funds dramatically expanded
their portfolios into real estate,” says
Stijn Van Nieuwerburgh, professor of
finance at NYU Stern. This expansion is
creating jobs in real estate beyond being
a developer or landlord on the ground.
“Employers are contacting me daily to
circulate positions among our real
estate students,” he says. Prof Wallace
adds that Haas is placing all of its MBA
real estate students into jobs.
BUSINESS EDUCATION
Video: Schools and companies
unite to develop global links
Bruno van Pottelsberghe, dean
of Solvay Brussels, talks about a
new alliance helping schools
establish worldwide reach.
www.ft.com/b-school-video
Professors at Georgetown, NYU and
Berkeley say they have seen a large rise
in demand for real estate classes, with
courses filling fast. Universities have
opened or beefed up offerings to meet
demand: Georgetown in April put $10m
into a new real estate centre at its busi-
ness school, following Rutgers and the
University of Miami in 2013 and NYU in
2012. “Banking, at least at the time [in
2009], appeared to be shrinking and
real estate finance was a natural place to
expand,” says Prof Van Nieuwerburgh.
Apart from the ebb and flow of the
cycle, real estate offers a connection to
physical beauty and tangible assets,
compared with illusory financial securi-
ties, students say. As banking loses the
perceived safety it once held and the
industry sees returns of less than a third
of that before the crisis, students are re-
evaluating what they want.
“[Banking] is what everyone thinks
they’re supposed to do, as opposed to
what they want to do,” says Matt
Cypher, director of the centre for real
estate at Georgetown’s McDonough
School of Business. “I get plenty of calls
saying: I’m just not happy here. I work
seven days a week. I want something a
little more tangible.”
Real estate jobs at private equity firms
or hedge funds involve skills similar to
banking: analysis, pricing and dealmak-
ing. But it attracts a different type of stu-
dent, Mr Lebowitz says. “If you look at
NYC real estate it’s heavily male domi-
nated . . . But it’s not quite as cut throat
with the alpha males [as banking]. The
culture is a little different.”
People skills are key, professors say.
Prof Cypher adds: “They’re not sales
people, but you have to have an innate
ability to interact.” It also takes an
Monday 11 January 2016
appetite for risk as recruitment is less
structured than that of banking or
consulting, in which large companies
come to elite campuses prepared to
hire a set amount of students each year.
Getting a job in real estate is less insti-
tutionalised, which makes breaking
into the industry “definitely a chal-
lenge”, says Mr Gleitman.
While the property cycle has ushered
in a newfound passion for real estate
education, there are questions over how
long the party will last. Already inves-
tors and analysts have flagged the possi-
bility that property has peaked again,
and prices will probably decline, if not
fully crash, in the coming years, or even
months.
As the US Federal Reserve raised
interest rates in December, bond yields
will rise, making property less attractive
and hitting prices. Reit prices have
already slipped 8.5 per cent since April.
The Fed has flagged the sector as a
hotspot in America’s economic recovery
and a sign credit conditions are getting
frothy.
With prices nearing all-time highs in
some sectors, “we’ve very quickly
moved from real estate is cheap, to real
estate is expensive,” Michael Kirby of
Green Street Advisors says. There is a
70 per cent chance that property prices
will be lower a year from now, Green
Street predicts.
This poses a risk that just as all these
students march into real estate, they
could be left out in the cold when they
need a job and the market has retreated,
echoing the history of their older bank-
ing peers. Ms Wallace says Berkeley is
limiting class sizes to combat this risk,
so students do not “all pile in while the
cycle is hot”, and similar efforts are
under way at Wharton and NYU.
For now students and universities will
ride out the popularity of real estate
while the market is hot, but many are
mindful of the booms and busts that will
determine their fate.
“Post Lehman, an MBA focus in
finance was scary . . . that’s why every-
one went into tech,” says Prof Cypher.
“We’re lucky now to benefit from a
strong point in the cycle . . . my hope is
we get a couple more years out of it to
establish our programme.”
Monday 11 January 2016
Juice gives fresh inspiration to China’s workers
Start-up offers healthy
drinks to improve stressful
lives, writes Della Bradshaw
Investment banking has a reputation for
being intense, arduous and stressful.
But for three women financiers working
in China, it was just these pressures that
sparked the idea for their business ven-
ture designed to promote a healthier
lifestyle.
The problem
It was while working for the China
International Capital Corporation in
Beijing, that Michelle Nie realised the
job was so physically and mentally
demanding that she had little time to
exercise or eat a healthy diet. “My life-
style was very unhealthy and I realised
that my friends also had the same
problem.”
The answer
While studying for her MBA at CUHK
Business School in Hong Kong, Ms Nie
had drunk detox juices. And while
on her exchange programme at the
University of California, Berkeley, she
indulged in the fashion for cold-
pressed juices. The detox concept was
virtually unheard of in China until
2013, says Ms Nie. “That is when
I thought that this might be a real
opportunity.”
So Ms Nie and her two co-founders
gave up their high-income jobs in
finance in 2014 to launch JuiceUp,
bringing nutritionally optimised cold-
Soapbox
Schools need
to teach tech
Business schools are no longer fit for
purpose, writes Pat Chapman-
Pincher. They were found wanting
in the 2008 global meltdown — look
at articles on “business schools to
blame for financial crash”. But this is
nothing compared with the crisis
now brewing in business, and the
Target the best in business with
FT Special Reports
Business Education:
Online learning
Next issue: 7th March 2016
Find out more and get a full list of representatives at www.ft.com/advertising
Back issues of printed FT Reports can be obtained from: Historic Newspapers, Signature Online Limited, No 1 Waterside Station Road, Harpenden,
Herts, AL5 4US. Tel: 0870 165 1470, Fax: 01852 469 248, Email: info@back-issue-newspapers.co.uk
★ FINANCIAL TIMES 11
BUSINESS EDUCATION
MBA Blog
Catch up with our current and new students
20 employees, with a further 20 work-
ing in juice production. Stephen Morse
A student at Saïd Business School
The product at Oxford university, Mr Morse
Formulated by an Australian nutrition- recently wrote about the latest
ist, the juices have been sold in daily sets MBA rankings from Business
of six bottles with each bottle containing Insider and how Saïd was penalised
differing amounts of nutrients and for the lower average starting
sugar. The six bottles are designed to be salary of its alumni than other top
drunk in a sequence. The concoctions schools. But he noted it was due to
are produced in Beijing with locally its students’ desire to work in “the
grown vegetables and imported fruits social enterprise, social impact,
and nuts and are then shipped by air to non-profit and public sector
more than 40 cities in China. worlds”. www.ft.com/mba-blog
With names such as Bondi Beach
(pineapple and pomelo) and Alice in
Wonderland (cashews and almonds), Sunny Sheng
the juices conjure up a lifestyle distant Society “needs to balance economic
from Beijing’s environment. As such, development with environmental
the juices have been seen as luxury issues”, writes Ms Sheng, who is
products. The market has proven price studying at Copenhagen Business
sensitive, with many customers order- School with a particular focus on
ing juices for just a couple of days — giv- sustainability in business. As air
ing JuiceUp its first market challenge. pollution levels in Beijing reached
In response, JuiceUp has developed a more than 10 times the international
Elixir of life? pressed fruit, nuts and vegetable juices member. The trio make a perfect weight-loss plan called aiuwei — Whoa! safety level during the Paris climate
Michelle Nie, to the Chinese market. team, according to Ms Nie, who in English. Slimmers consume 1,200 conference, she says it is time to
right, with her describes herself as the ideas person in calorie-a-day meal replacement juices “make sustainability count in the
JuiceUp partner The people the company. for two consecutive days each week for bottom line”. www.ft.com/mba-blog
Maggie Wang Ms Nie met co-founder Tiffany Ren dur- Ms Wang is strong on implementa- several months.
Olli Geibel
ing the first week of their MBA pro- tion and negotiations, she says, while The weather also plays its part. In
gramme in 2010, where circumstances Ms Ren had worked in the venture capi- winter up to 100 sets of juices a day are Kim Johnstone
threw them together in a shared tent tal industry, so was instrumental in sold, but in summer that can double. Providing population insights to
during an outdoor bonding exercise at securing investors. As well as the The customer base is also different to help plan for the future, Ms
the start of the course. Both had come three founders, JuiceUp has two further what the co-founders expected. Johnstone works for the Australian
from the finance industry and on gradu- shareholders: Kevin Wen, co-founder “When we started, we thought 99 per government and is a non-executive
ation both returned to it — Ms Nie in Bei- of US-listed company LightInTheBox; cent [of consumers] would be female,” director on not-for-profit boards.
jing and Ms Ren in Hong Kong. and Boquan He, a professional says Ms Nie. “For our new product [aiu- She has just started her MBA at
While working at CICC, Ms Nie met investor. wei], around 30 per cent are male the University of Sydney Business
Maggie Wang, JuiceUp’s third founding The company now has more than customers.” School and will provide insights
into her experience. She sees the
MBA as a way to bring about
lack of understanding or leadership executives to human resources to an algorithm sits on a Hong Kong equality in the workplace and
from business schools to manage it. professional advisers. board with an equal vote. society.
There has been much media It struck me that business schools Tech has barely had a look-in on a
coverage in the past year on artificial are partly to blame for this lack of typical MBA programme and it
intelligence and the fate of technology management skills at the certainly does not feature as a core. Cordelia Shackleton
humankind. Intelligent automation is most senior levels. A new discipline is needed, call it Due to start Harvard Business
already in the workplace, yet few According to my research, 58 per “Future Technology”, looking at new School in August, Ms Shackleton will
leaders have the skills to understand cent of UK bosses admit their boards robust strategy processes and the join our blog later in the year. She
or manage it strategically. are not good at understanding or impact of technology on every area has worked in investment banking
I am concerned and so carried out managing technology; 47 per cent of business. and investment management, and
my own research with business have not looked at the impact of The writer has built, run and has a degree in chemistry from
leaders: “March of the Robots . . . automation on jobs; and only 19 per chaired technology companies and Oxford university and a masters in
Into the Boardroom”, which cent think automation will hit mentors FTSE chief executives and finance from the London School of
examines the issues and corporate managerial jobs and just 3 per cent directors. See this article in full at: Economics. She is doing an MBA to
responsibilities of technology, from leadership positions — yet already www.ft.com/business-education gain management skills and explore
her career options.
Gemma Taylor in London
Tel: +44 020 7873 3698
Email: gemma.taylor@ft.com
12 ★ FINANCIAL TIMES Monday 11 January 2016

BUSINESS LIFE

Office pranks
‘
The other day a fellow Financial Times terrifying messages to unsuspecting — entitlement, gadgets, laziness. My code. Babyish pranks simply don’t fit
columnist told me that not long ago he colleagues. My acquaintance once lost a generation is entitled, loves gadgets the profile.

are no laughing had sneaked up to a workmate’s

unattended computer and fired off a
bet with another lawyer as a result of
which he had to wear a red bra under a
and is lazy, too, but mine couldn’t resist
a spoof email. Theirs can.
The fourth and most powerful reason
is that young professionals do not think

matter to message to the man’s male boss that

said: “I can contain my feelings for you
no longer.” He had intended to leave it
young workers for half an hour and then reveal his
authorship. Only something came up,
he forgot all about it and never let on.
What struck me most about this
story was not its babyishness or its
white shirt to the office next day and
take his jacket off during a client
meeting.
Written down, these capers don’t
sound especially funny but they were
how my generation dealt with the main
drawbacks of professional life —
boredom, stress, long hours and the
There are four reasons for their
aversion. The first is that employers
have made all of us more politically
correct, more rule-bound and more
fenced in by 500-page codes of
conduct. Modern corporate culture
takes a dim view of pranks, seeing
them as bullying or harassment.
it is OK to pretend to be someone else
online. One FT trainee explained that
their internet personas are so much a
My generation part of them — their whole lives are
online — that it counts as a serious
couldn’t resist a betrayal if anyone, especially a
spoof email. The colleague, tries to mess with that.
Still, the death of the prank strikes
millennials can

whiff of homophobia. It was that such
behaviour has become an
anachronism. Hardly anyone plays
pranks like this at work any more. My
generation used to thrive on such
things but has mostly grown out of
them (my colleague excepted), while
the younger generation has failed to
grow into them. Journalists in their 20s
seem to think practical jokes in the
office are not funny and not clever.
An acquaintance who is a partner at
a law firm tells me that young lawyers
are as prank-phobic as young
journalists. The sort of japes he and his
Lucy Kellaway peers engaged in as associates in the
1990s are now inconceivable. They
Onwork would slip random words like “teddy
bear” into the middle of draft
prospectuses to see if anyone noticed.
They would nip into the managing
partner’s empty office and send
need to pretend to take stupid things
seriously. A good prank made it all
tolerable.
Last week I hunted down some of the
graduate trainees who have been at the
FT for about 18 months. How many
practical jokes had they played or had
sprung on them at work, I asked. Not
only was the answer none but they
appeared not to understand the
question. I found myself regaling them
with the japes we used to get up to. I
told them about the time a colleague
sent out a message to the entire staff
purportedly from a particularly
know-all young economics leader
writer asking: “Who is Alan
Greenspan?” The trainees laughed
politely. None seemed amused.
It is this aversion to pranks that
defines millennials far more than any
of their other supposed characteristics
’
The second is that most younger me as a terrible shame. Office work is
people have learnt that there is no such relentless and a joke at someone else’s
thing as a private joke on email; only expense can cheer one up no end.
idiotic old people persist. When a Great pranksters weren’t bullies. They
senior partner at US law firm Weil, knew how to do it with just enough
Gotshal & Manges sent an April Fool affection that even the victim was not
message last year banning out-of-hours scarred for very long.
email, employees were not amused. When I was new at the FT in 1985
The message went viral and he was one colleague in particular used to
forced to issue a grovelling apology. delight in phoning me from the other
The new seriousness is also because side of an open-plan office pretending
life is so much more competitive — the to be an enraged chief executive from
third reason. My generation sloped the company I had written about,
into jobs and never felt any particular complaining that my article was full of
need to behave in a professional mistakes. I would stutter and blush; my
fashion, except when strictly called colleague and his friends would watch,
for. By contrast any 25-year-old who vastly amused. Although mortified,
has made it into a big corporate job has
had to excel academically, climb
I eventually saw the funny side. I
repaid the prankster by marrying him.
Kilimanjaro, start a couple of charities,
play semi-professional lucy.kellaway@ft.com
viola and has taught themselves how to Twitter: @lucykellaway

Monday interview. Jacques Gounon, Eurotunnel CEO Working smarter

The delicate balancing act of

By train, not plane placing trust in your best staff
EMMA DE VITA

Being trusted by your coping with responsibility

The head of the rail line manager is to be both
welcomed and feared and
linking the UK and France supervisors should be aware
talks to Michael Stothard of the burden they put on
employees they highly trust,
about terror, migrants according to research.
and potential Brexit Relying on someone can
make them feel special, but
the extra workload and
acques Gounon was driving stress of living up to
and if they have what they
need to perform effectively.
The research also
suggests that a manager
should make clear when
giving extra responsibility to
a member of staff, that they
are doing so because they
are highly trusted. “By
framing the assignment as

J
November.
from Calais to his home in Brus-
sels with the radio off when
Paris was struck by terrorist
attacks that left 130 dead in

It was not until much later that the 62-

year-old chief executive of Eurotunnel,
which runs the Channel tunnel railway
line between the UK and France, heard
what had happened and frantically
began calling his children in the French
capital.
“I was shocked, upset and afraid,” he
says. His son was a regular at the Batac-
lan, the concert hall where 89 people
were killed in the most deadly incident.
“It was one of his favourite places.”
Fortunately, they were unhurt but
those moments of fear for his family
seemed like the climax of a rough year
for the chief executive, who over
the summer saw his train depots repeat-
edly invaded by bands of migrants
in Calais.
Despite these headline-grabbing
disruptions, however, Mr Gounon says
that the full traffic figures — due to be
released next week — are some of the
best the group has seen.
Perversely, he says, the Paris terrorist
attack actually helped business. “It is a
pity to say it but it’s the truth. Brits
have been more reluctant to take
planes because of the terrorist threat,”
he says. “They are back in their cars
and looking for destinations that
are easy to reach for just a couple
of days.”
Eurotunnel earns most of its revenue
from the shuttle service, which takes
mainly British passengers through the
Channel tunnel in their cars. Most use
the service as part of a road trip to
northern France and Belgium, rather
than Paris.
On top of the strong pound and a
healthy UK economy, these tourists’
caution contributed to a strong year,
says Mr Gounon.
He is speaking at the company’s mod-
est offices in Paris, which has just a
handful of rooms and a wonky
unframed “Mona Lisa” on the bathroom
door.
Mr Gounon says that the year
cemented the turnround of a group that
has for much of its history lurched from
one crisis to another, beset with Franco-
British rivalry and debt.
The group had never recovered
from the multibillion-pound over-
runs it incurred in the early 1990s
during the construction of the
50km tunnel, the first land link between
Britain and Europe since the last
Ice Age.
Almost immediately after the tunnel’s
completion, the company had a brush
with bankruptcy. In 1996 it required a
restructuring of an £8bn debt load
taken on with wildly optimistic growth
assumptions.
By 2005 a more serious and lasting
solution was needed, and Mr Gounon, a
former civil servant, took over. He
wrapped the company in bankruptcy
protection for two years while he negoti-
ated a complex and bruising deal to
slash debt by more than half to £2.8bn.
“The company was in a real mess,” he
says. The hardest thing in the negotia-
‘One job, one tions was trying to convince creditors
manager, they had to “let go of their dreams” that
whatever the they were ever going to get all their
nationality’: money back.
Jacques Gounon Second, he shed a third of the com-
had to cut pany’s 3,000-strong workforce. When
Eurotunnel’s he arrived, he says, he found that every
Anglo-French management post was filled twice —
workforce with a British and a French manager.
Magali Delporte
More often than not they did not get
along.
“When I joined Eurotunnel I inher-
ited this binational organisation, which
was very strange. The decision-making
structure was unclear, so I applied one
rule: one job, one manager, whatever
the nationality,” he says.
Thanks in part to this broad restruc-
turing, the company reported its first
ever full-year net profit in 2011. It has
been in the black since, reporting a net
income of €57m in 2014. Shares in the
company are up about 35 per cent from
the start of 2014.
The biggest problem facing the com-
pany last year was the migrant crisis. At
its peak in the summer, there were
2,000 attempts in one night by people
from the nearby makeshift migrant
camp, known as “the jungle”, to board
lorries or trains, often involving violent
clashes with police.
The company was forced to spend
€13m on security in the first six months
of 2015.
Mr Gounon says the migrant situation
has turned a corner thanks to quick gov-
ernment action to secure the border.
Xavier Huillard, CEO of the construction
Second group Vinci, has known Jacques Gounon
opinion for more than three decades, attending
the same elite engineering school and
working with him in government and
The fellow the private sector.
CEO He says that Mr Gounon is a “ball of
energy with a powerful mind”. He is a
fearsome negotiator, who is able to
understand opponents’ thinking. Mr
Gounon also liked to get into the gritty
detail of operations, building up hands-
on experience that helped him later.
CV
Born Paris, April 25, 1953
Education École Polytechnique and
École Nationale des Ponts et Chaussées
Career
1977-1986: Various government
engineering roles, including helping to
run Paris’s waste management
1986-90: Chief executive of Comatec
1991-93: Director of development for
Eiffage’s service activities
1993-1996: Adviser to the French
employment and transport ministers
1996-2001: Deputy chief executive of
industrial group Alstom
2001-2005: Chief executive of
engineering group Cegelec
2005-present: CEO of Eurotunnel
Interests DIY, reading and swimming
The UK funded more fences while the
French increased the police presence.
“We are [no longer] so disrupted by the
migrants,” he says.
Mr Gounon is turning his attention to
more exciting prospects. He is planning
a range of deals, including bidding for
London City Airport as part of a larger
consortium, and considering the pur-
chase of the 51 per cent stake that
Eurotunnel does not already own in
Eleclink, a venture that aims to
transmit surplus electricity between
Britain and France through the
tunnel.
Mr Gounon also foresees a silver lin-
ing for Eurotunnel if Britain votes in the
forthcoming referendum to leave the
EU, an outcome that many other busi-
ness leaders would consider a disaster.
His theory is that Brexit could herald
the return of duty-free shopping for
British visitors to France and vice
versa. Before its abolition in 1999, the
“booze cruise” trade generated a tenth
of Eurotunnel revenue. “It would be an
incredible boost for my business,” he
says.
Mr Gounon’s job puts him in regular
contact with officials and ministers on
both sides of the Channel but while he is
known as a political operator and a
fierce negotiator, he grew up as a shy sci-
entist, he says.
He was too nervous, for example,
when teachers said he should go to
school at the prestigious Lycée Henri-IV
in the heart of Paris, because he was just
a “suburban child”.
He went instead to Lycée Charle-
magne, and from there to École Poly-
technique, established by Napoleon and
one of France’s grandes écoles that turn
out the country’s elite leaders.
His father was a professor at the same
university.
For most of the 1980s he worked for
the French state, entering the grands
corps de l’état, making him a civil servant
“erecting bridges and roads and things
like that”.
He worked for the industry and trade
ministries, becoming chief of staff to
then transport minister Anne-Marie
Idrac in 1995.
Eventually, he decided that engineer-
ing was not for him and chose to move
into management where, quite simply,
he could be “making a lot of money”. He
ended up working for Alstom, the
industrial group.
He does not regret his decision. He
points proudly at the photo on the wall
of his office showing Queen Elizabeth II
and the former French president
François Mitterrand in a Rolls-Royce on
the first passenger shuttle through the
tunnel in 1994.
“I met the Queen of England,” he says.
“She was always a great supporter of
the tunnel.”
He advised his three children to go
into finance, however, rather than gov-
ernment or engineering, reasoning
that it was where the money was. He
feels a bit bad about this advice, which
was given just before the global financial
crisis.
“I said to my children to go to the
financial world because it’s much
more profitable than the engineering
world . . . even now they’re still saying
that there’s a financial crisis,” he
laments.
expectations can become
exhausting.
“The drawbacks of being
trusted were relatively equal
to the benefits,” Michael
Baer says of the research he
co-authored. The study,
based on surveys of 219
London bus drivers and
their 20 supervisors, showed
that trusting employees may
tax them to the point where
their performance suffers.
While a highly trusted
employee might experience
a greater sense of
achievement, pride and
status, the researchers
found that those benefits
were often wiped out if a
manager thoughtlessly
loaded them with too much
responsibility.
Professor Baer, of Arizona
State University, advises
managers not to look at
trusted employees as
indefatigably able to take on
ever more.
“It’s natural that managers
would turn to highly trusted
members when making
assignments,” he says, but
they would be wise to reflect
on how often they rely on
them, and whether the
employees have the
capacity to take on trust-
sensitive tasks. “It is a
mistake to assume that the
trusted employee can
handle anything that is
thrown their way.”
To prevent exhaustion, he
suggests that managers
reassign less critical tasks to
other team members. It is
important to ask staff
regularly how they are
Feedback
Sarah O’Connor (below)
argued in a new column on
employment last week that
human workers’ lives
would be improved if
robotic jobs were left to
robots. Readers responded:
What is very much needed is
Basic Income [a grant to all
citizens]. Allows people to
do the jobs that they want
to do and therefore be more
creative. There is no way
that society can create jobs
for all. Taxpayer
It’s not low-paid work
where automation leads
to big gains. It’s high-
paid work, and here
lots of workers are
vulnerable —
including
lawyers,
journalists
an opportunity rather than a
burden, employees might
experience heightened pride
without the accompanying
drawbacks,” says Prof Baer.
When it comes to
protecting their hard-won
reputation, trusted
employees should be
reassured by their manager
that they will not be put in
danger of losing it because
of the extra assignments.
Julian Birkinshaw, of
London Business School and
author of Becoming A Better
Boss, says that some people
will relish being in a position
of high trust, while others
will be unhappy about it.
“You need to understand
your people sufficiently well
to know which of them will
rise to the challenge,” he
says. It is likely that the
more ambitious someone is,
the more they will want the
opportunity to be trusted,
and a good manager will
allow them this and the
freedom to do their best
work. “If someone is willing
to take on more then that is
a good sign,” he says, adding
that giving people leeway
allows them to discover their
capacity.
While overburdening
someone you trust might be
a problem for some
managers, says Prof
Birkinshaw, of bigger
concern to staff is the
opposite problem of
micromanagement, which
bosses would do well to
remember.
workingsmarter@ft.com
and software engineers.
Bagehot-by-the-Bay
The same dilemma has
faced us with each
technological advance since
the Industrial Revolution
. . . pros and cons every time,
but the advantages tend to
win. User_7955
Any task that can be defined
in procedures is ripe for
automation.
We just need to develop
general purpose
robots that can be
trained and
repurposed
without huge
set-up costs.
Sounds like the
computer
industry all
over again.
roadrunner
Monday 11 January 2016 ★ FINANCIAL TIMES 13

ARTS

A world of whispering melancholy C L A S S I CA L M U S I C

Schubert: The Complete Songs

The work of Vilhelm Hammershøi, believe he is going to be important and
do not try to influence him.” Maybe crit-
on show in New York, testifies to the ics were mystified by the muted mono-
power of restraint. By Ariella Budick chromes, though he shared that palette
with J.A.M. Whistler. Or perhaps it was
the mystery at the heart of his depopu-
Wigmore Hall, London
aaaae
Richard Fairman
The only surprise is that Wigmore Hall
has not done it before. Schubert is so cen-
tral to the hall’s programming that a

D
oes an age of CGI apoca-
lypses, barn-sized puppy
sculptures, flash mobs, viral
videos, and online splatter
games have space for the art
of a long-dead Dane once known as “The
Painter of Tranquil Rooms”?
Vilhelm Hammershøi was born in
1864, a few months after the Norwegian
Edvard Munch, and died in 1916, taking
his reputation with him. Munch’s
scream has kept bellowing through the
decades, from grand thefts to coffee
cups. Now Scandinavia House in New
York has mounted a Hammershøi exhi-
bition that whispers into the uproar, tes-
tifying to the power of austerity and
restraint. Emotion overflows in the lim-
pid light of empty rooms. Landscapes
quiver with an atmosphere that is other-
worldly, wistful and sublime.
In one lyrical interior, clarity strug-
gles against dimness. Sunshine pours
through a large window, projecting a lat-
tice on the vast floor. But in a corner, a
woman, seen from behind, hunches
over a desk. The spiritual silence of the
scene harmonises grey and white pat-
terns: the door, with its sequence of rec-
tangular mouldings, a vertical case-
ment, and the geometric panelling on
the walls.
The simple, gridded arrangement
verges on modernism. It also taps older
traditions of sun-dappled chambers
flecked with anxiety, contemplation
and desire. Dutch 17th-century painters
bathed gestures and half-completed
thoughts in floods of light. Later, after
Napoleon’s fall, a generation of artists
ground down by imperial adventures
turned their visions towards home. In
an 1826 painting by Wilhelm Bendz, two
brothers keep silent company in a lam-
bent green parlour, the sober values of
middle-class Copenhagen illustrated by
the spare, brightly lit furnishings.
Hammershøi was hardly alone in
reviving the contemplative, domestic
mode. Another contemporary, Edouard
Vuillard, wove his subjects’ inner lives
into intoxicating mélanges of shapes
and colours. He channelled anguish and
joy into delicate and decorated surfaces
— and yet, all that kaleidoscopic pat-
terning is a kind of gentle jail. Hammer-
shøi’s women are cut off in their solemn
surroundings, while Vuillard’s disap-
pear into the riot of the room — but the
abnegation remains the same. In his
1879 play The Doll’s House, Ibsen con-
fined his restless character Nora to just
such quarters.
Despite all the precedents and reso-
nances, Hammershøi’s work puzzled
artistic authorities. “I have a pupil who
paints most oddly,” his teacher
reported. “I do not understand him, but
lated canvases. Absent of motion and
colour, the interiors still thrum with
muted energy.
In a painting from 1888, another soli-
tary woman stands with her imposing
back to us as she engages in a recondite
task. A beam of sunlight sets the nape of
her neck aglow, along with her pillowy
elbows and starched white apron. All
that stillness and stolidity bring to mind
the isolated figures in the work of
Edward Hopper. Though their output
looks quite different, both painters deal
with a sense of aloneness in a world suf-
fused with melancholy.
Hammershøi extends his muffled
asceticism into the urban landscape.
Copenhagen, his home town, looks as
colourless and devoid of people as the
rooms of his house. An equestrian mon-
ument dominates an empty square
ringed by blank windows — this time
seen from the outside. The light is cool,
the air misty. Greyness abounds.
But some rude spirit forces its way
into Hammershøi’s brush when he ven-
tures into the countryside. There, the
city’s grim regularity gives way to the
disordered silence of nature. Hammer-
shøi steered clear of cliffs and turbulent
clouds — anything that might distract
through grandeur. A great flat sky,
bounded by a field edged with a stand of
trees, strikes a truce between wilderness
and cultivation.
In a picture of a deer park north of
Copenhagen, he achieved a rare and
perfect transcendence. We look into a
forest where boughs are haloed by a set-
ting sun. The leaves blear into mossy
fur, the roots dissolve into grass the tex-
ture of velvet. Shadows stretch towards
us, boding the end of the day, of the sea-
son, of life itself. Hammershøi dissolves
Clockwise, from shapes and objects into atmosphere.
main picture: Instead of views on to a bright and ever-
‘Interior in changing reality, he offers us timeless
Strandgade’ vessels of sensibility.
(1901); ‘Self-
Portrait’ (1890); ‘Painting Tranquility: Masterworks by
‘Jægersborg Deer Vilhelm Hammershøi’, to February 27
Park’ (1901) scandinaviahouse.org
complete series of the composer’s songs
makes a natural fit. With more than 600
to go, this is an ambitious two-year
projectwithchallengesstrewninitspath.
It seems only fitting that Graham
Johnson, accompanist and song expert,
should be there at the beginning. As the
guiding spirit behind Hyperion’s com-
plete recordings of the Schubert songs,
he has already shown his encyclopedic
knowledge of the territory. The rarities
in the two recitals that launched the
seriesareprobablyoldfriendstohim.
The first was an early-evening hors
d’oeuvre — a 45-minute recital with
effectively only three songs. One of the
rewards of following this series will be
the opportunity to get to know the other
Schuberts we rarely meet. In theory, his
long ballads, almost never performed
today, could be a problem, but Johnson
and his three singers proved otherwise.
Herearedramasinminiature.“Minona”,
expressively sung by Birgid Steinberger,
sounds like a 10-minute distillation of
Wagner’s Lohengrin, way ahead of its
time. “Adelwold und Emma”, performed
as a trio by Steinberger, Daniel Johan-
nsen and Benjamin Appl, came across as
afast-moving30-minuteopera.
The main evening recital by Christo-
pher Maltman gave us a couple of the
ballads.Thelong“DieBürgschaft”,based
on Schiller, motors along with drive and
power. Maltman sang it entirely himself
and from memory. In simple, lyrical
songs he is not the most naturally sweet-
sounding of baritones but wherever nar-
rative and drama are called for, Maltman
can be gripping. He brought lesser-
known songs such as “An die Apfel-
bäume”and“Rückweg”vividlytolife.
A closing group of songs “from the bat-
tlefield” was tremendously energising
with Johnson letting rip at the piano.
Their encore, “Gruppe aus dem Tarta-
rus”, was enough to stir the spirits of hell.
Even down there they now know the
Wigmore’s Complete Schubert Song
seriesisunderway.
wigmore-hall.org.uk

Smart story of flea-bitten squalor

Poignant: Sheila
THEATRE Hancock in
‘Grey Gardens’
Grey Gardens Scott Rylander
Southwark Playhouse, London
aaaae
Sarah Hemming

It’s a good month to talk decluttering

and London now has two fine theatre
shows about eccentric recluses living in
squalid disarray that could, in a sense,
be seen as cautionary tales. Joining The
Dazzle is this UK premiere of the 2006
musical (witty music and lyrics by Scott
Frankel and Michael Korie, book by
Doug Wright) about a mother and
daughter retreated to grand squalor in
the Hamptons. It’s smart, intriguing and
funny, though overly baggy, and deliv-
ered with customary snap and flair by
rising director Thom Southerland.
Drawn from the true story of social-
ites Edith Bouvier Beale and her
daughter Edie (who were the subject of
a renowned 1975 documentary, from
which many of the lines are taken), the
musical spends the first act musing
on the possible social and psychological
catalysts for the conditions it depicts
in the second act — by which time the
couple are holed up in a decaying
mansion in the company of 52 cats,
several raccoons and an unspecified
number of fleas.
We are whisked back, then, to 1941
and the (fictitious) grand occasion of
little Edie’s (Rachel Anne Rayham)
engagement party to Joe Kennedy Jr.
Trouble is brewing. First Edith makes
plans to hog the limelight by singing
nine florid numbers.
But it is Edith’s “accidental” revela-
tions about her daughter’s colourful
past that see off the charming but ruth-
lessly ambitious Joe (Aaron Sidwell,
perfect). Does she do it to wreck
her daughter’s future? Or does she,
rightly, surmise that Edie, like her
mother, is just too live a wire for the rigid
expectations of a top-drawer political
wife? Either way, it is little Jackie
(Edith’s niece) who listens keenly to
her starchy grandfather’s advice to
“marry well” and who will, as we know,
end up hitched to a famous Kennedy.
Though drawn out considerably
longer than necessary, this set-up con-
textualises the second act, increasing
our sympathy for the two women in
their chaotic fortress. The mood
becomes one of melancholy flecked
with defiance as the show explores the
needy, needling relationship between
mother and daughter.
Sheila Hancock is immensely poign-
ant as the rebellious old Edith and Jenna
Russell (who also plays Edith in the first
half) is outstanding as Edie: heartbreak-
ingly chipper as she shows off her
makeshift wardrobe and showers her-
self in flea-powder. Between them, they
suggest that, for all their peculiarity, the
two women possess an integrity missing
in the glossy world around them.
To February 6, southwarkplayhouse.co.uk

THEATRE
Jane Wenham: The Witch of Walkern
Arcola Theatre, London
aaaee
Griselda Murray Brown
In 1712, one of England’s last major witch
trials took place in the Hertfordshire vil-
lage of Walkern. Rebecca Lenkiewicz’s
new play reimagines the accused
woman’s ordeal — and the prejudices
thatallowed suspiciontotake root.
Eleanor Thorn has just been hanged
for witchcraft. Her daughter, Ann, is dis-
traught. Jane Wenham, a friend of Thorn
and an old spinster who sells herbs for a
living, is out foraging “as though she had
no part in all of this”, one woman
observes darkly. Another warns Ann to
avoid Wenham, since she is also under
suspicion. In Ria Parry’s tight, tense pro-
duction — first seen at Watford Palace
Theatre in September before touring —
the cast rarely exit the small thrust stage,
instead sitting on benches around its
edge to observe the action. Everyone
here is being watched andjudged.
Lenkiewicz sets Wenham’s story
against contemporary religious debates,
the kindly sixtysomething Bishop
Hutchinson representing an enlightened
Christianity and the young Reverend
Crane a zealous Puritanical strain.
Suspicion: Amanda Bellamy as Jane
Unlike Crane, Hutchinson lived through
the height of the witch-craze, a “brutal
cleansing” of the poor, old and infirm.
He does not believe in witches; his prior-
ity is to restore calm. But Crane is con-
vinced he is doing God’s bidding by
removingsociety’s“rot”.
Jane Wenham resonates with current
debates around xenophobia and the
meaning of loving thy neighbour. As one
villager explains to Crane, Eleanor
Thorn was an outsider while “Jane was
bornhereofcourse,soit’sdifferent.”
Amanda Bellamy shines as Wenham,
a woman who has seen and endured
much, yet remains full of kindness and
good sense. David Acton is excellent as
the caring but quietly controlling Hutch-
inson, as is Cat Simmons as his servant
and reluctant lover, an ex-slave from the
WestIndieswithher ownsadstory.
If anything, the play tries to tick off too
many issues without giving enough
space to each. But this is a fascinating
pieceofhistoryskilfullybroughttolife.
To January 30, arcolatheatre.com
14 ★ Monday 11 January 2016

Talking Tech Explore more sports

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

Can a tech hub

be in the back The Baseline
of beyond? Can you trust reported football transfer fees?
An FT analysis of reported fees from major European news organisations
and one specialist site shows there is often considerable disagreement
over exactly how much a player cost. Who do you believe?
An email arrives confirming lunch with
a Los Angeles-based technology player SKY BBC Marca L’Equipe Kicker Gazzetta TransferMarkt
who has an interesting story to tell.
It’s from his UK office. And, er, oh.
They’re in a God’s-waiting-room English Tranfered Reported fee (£m)
seaside town; I won’t say which, for fear From To 20 40 60
of being asked how I could be unaware
that Puddlington-on-Sea, wherever, is a Anthony Martial
thrumming tech hub.
Call me shallow, but I am reassured Kevin de Bruyne
when technology companies are where Raheem Sterling
they should be: San Jose, Shoreditch,
Paris, Tel Aviv, Shenzhen, etc. Dissonant Angel di Maria
locations give me a jolt, like when my
bike slips out of gear. Like it or not, Chrstian Benteke
where you are matters.
I recently met a fascinating tech Nicolas Otamendi
entrepreneur with a superb product,
possibly a reinvention of search. But Memphis Depay
when Rhys Maddocks said he was based
in the sleepy Devonshire town of Totnes Rodrigo Moreno
in the UK, I got that gear-slip sensation. Devon Valley: Totnes can claim more than one tech entrepreneur as its own — Dreamstime Arda Turan
Now I am a big Totnes fan. It’s head-
to-head with Cold Spring, NY, as where Roberto Firmino
I’d like to live one day. But Palo Alto it — you use a Tinder-like left-right swipe index the internet and no one in the UK
ain’t. Totnes is best characterised by the to indicate whether a job from five would fund me to.” But he’s happy for it Geoffrey Kondogbia
chap I saw wheeling his daughter down million possibles is suitable or not. The to power single-purpose search sites.
the main street in a wheelbarrow, telling pool whittles down steeply; he claims So what does a proper Silicon Valley- Arturo Vidal
her: “Mummy’s composing a peal of Adswipe is at least four times faster than ite make of Adswipe? I turned to
bells for the environment.” Google at getting information you want. Sanford Dickert, software guru and Morgan Schneiderlin
Mr Maddocks pointed out that Totnes The app learns about you, your college classmate of Google’s founders.
has IT credentials as the home of qualifications and where you want to Mr Dickert knows a little of Adswipe. Julian Draxler
Charles Babbage, the 19th century work. Prospective employers “What’s interesting”, he says, “is that
father of computing. But he did wonder simultaneously learn about the market Rhys is exposing to users the FT graphic Source: FT research

if he should start saying he’s based in and whether the salary, job description, information Google keeps backstage, so
Amsterdam, where he also has a home. whatever, needs tweaking. they can optimise their own search. JOHN BURN-MURDOCH difficult for reporters to agree on.
I said that would be a plan, at least It’s not hard to see how the technology Jobswipe makes a positive feedback Specialist website TransferMarkt is
until the product we were talking about, could be adapted for property, cars, loop between job hunters and job Every football season billions of also an interesting case: collabora-
a search system called Adswipe, is so big even general search. The tech-aware placement people, which is a nice pounds change hands in the two peri- tion between the site’s editors and
that it defined Totnes — not impossible, will recognise it as a twist on vertical win-win.” ods where deals can take place across dedicated global user base has given
because Adswipe is exceptionally clever. search, which is a hot topic right now. What about the Totnes issue? the globe, but despite the amount of it a database of deals stretching
Rhys Maddocks is not your typical Vertical, built principally for “It doesn’t matter where you are, but the sports media’s attention devoted across continents, decades and tiers
start-up kid. He’s 40, from a prominent smartphones, is search focused on one what problem you’re solving,” Mr to the transfer market, there remains of football that is unrivalled in the
Welsh academic/scientific family, a topic. “Adswipe’s further take on Dickert says, citing digital media a surprising amount of uncertainty public domain.
schoolboy prodigy turned LSE dropout vertical is, once you know what people website Mashable, founded by Pete over the value of the fees involved. In almost every one of the deals
turned DJ. He already has a successful want, give them more of it,” Mr Cashmore in Banchory, Aberdeenshire. A Financial Times analysis of every shown here, TransferMarkt is very
internet business, the Xpat websites, Maddocks says, “so when you’re looking Point taken. But the leviathan that is transfer in summer 2015 whose maxi- close to its mainstream media coun-
global jobs and property portals that for jobs, but don’t want to stumble on Mashable is not in Banchory now — its mum reported value exceeded £20m terparts but in one case there is a big
serve 25m visitors a year. And, yes, he interesting items about Steve Jobs.” HQ is Manhattan. And when I look up shows that European sports news disparity: evidently the site’s editors
runs these from his converted Devon I know how everyone today is Babbage, I discover he barely spoke of organisations broadly agreed on the chose not to include the conditional
farm building. obsessed with their app — it’s the his connection with Totnes. By his own feeinlessthanhalfofthe23cases. bonus payments in Anthony Mar-
Two years ago, Mr Maddocks came up screenplay/novel of 2016 — but Adswipe account, Babbage lived and worked his Memphis Depay’s £28m/£31m/ tial’s move to Manchester United,
with the idea, now US patent pending, of sounds like a hit to me. Mr Maddocks is entire life in central London — just £20m/£21m (delete as appropriate) and stuck with the fixed £35m fee
an intelligent search technology that sensible, too. He says it could be the where you’d expect. move from PSV Eindhoven to Man- that was reported to have formed the
lets you react with your results. Jonathan Margolis basis of a new British Google, but jonathan.margolis@ft.com chester United proved particularly backbone of the deal.
In its first live application — Jobswipe probably won’t. “I’m not in a position to @TheFutureCritic

HIGH Today’s temperatures

1000
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ipei
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ACROSS 5 Deterioration in opening of

MONDAY PRIZE CROSSWORD 1 Most of the elite in ancient throttle (7)
No. 15,134 Set by ARMONIE Egypt (6) 6 Lie about second-class food
5 Impose a curfew on office of (5)
       
proverbial confidant (8) 7 Trouble in Shanghai (5)
9 Sneak in late (8) 8 Russian worker becomes a
10 Exhausted by restraining king soldier (8)
  (6) 13 Devotional vestment is a
11 Museum student is a weight (3)
delinquent (6) 15 Ostentatious cheer when wild
   12 She hates breaking sporting boar is captured (9)
trophy (3,5) 16 Star model modelled for
14 Working and, at that point, painter (3,6)
   certain to be emotionally 17 Request certain to give
distressed (2,3,7) enjoyment (8)
 18 Traveller’s joy seeing damn 19 Sailor’s muscles (3)
  
bad loser upset (3,4,5) 20 Crew spotted a cutter (7)
22 A state of panic dogs Spike (8) 21 Claim supporter tucked into
 25 Ordinary people entertaining the booze (6)
Latin soothsayer (6) 23 Lowest point in race (5)
   
26 Dog eats an oddity of nature 24 Man of principle is safe (5)
(6)
27 Check straps of women’s SOLUTION 15,123
  underwear (8)
28 Delaware atomic project?
That’s the last place to live!
  (5,3)
29 Hesitation about composer
A prize of The Good Word Guide by Martin Manser and How to being a breadwinner (6)
Sound Clever by Hubert van den Bergh will be awarded for the
first correct solution opened. Solutions by Wednesday January DOWN
20, marked Monday Prize Crossword 15,134 on the envelope, to 2 Execute Arab in large building
the Financial Times, 1 Southwark Bridge, London SE1 9HL. Solu- (6)
tion on Monday January 25. 3 Carpet the street in blossom
........................................................................................................................................... (9)
............................................................................................................................................ 4 Initially shrewd young rascal The winner’s name will be published
spilled the beans? Wally! (9) in Weekend FT on January 23
Monday 11 January 2016 ★ 15

Detroit dilemma Carmakers grapple Over there The US arrives as a gas

with competing pressures — ANALYSIS, PAGE 18 exporter to the world — ANALYSIS, PAGE 17

Apple Music Bank gloom Run-up to Fed’s rate rise fails to boost key
trading units of US lenders as China and oil hurt revenues
Sterling bond
market fails
attracts 10m to open amid
Performance
FTSE USA Banks index
Jan 1 2015

372.02
Brexit fears
subscribers in DAVID OAKLEY — LONDON

The sterling corporate bond market,

just six months

excluding financials, has failed to open
this year amid worries that the looming
Brexit vote has hit confidence.
The referendum on whether Britain
should stay in the EU, which could be
held as early as the summer, has
prompted some corporates to put
3 Group gains ground on rival Spotify investment in UK assets on hold, say
investors, bankers and company execu-
3 Streaming boom threat to downloads tives.
It is only the second time that the ster-
MATTHEW GARRAHAN — NEW YORK hit 10m subscribers in 2014, the service ling corporate bond market for issuers
TIM BRADSHAW — SAN FRANCISCO
had 40m active users in 56 markets. other than banks has failed to open in
Apple has passed 10m subscribers for its The Swedish company’s growth has the first full week of trading of a new
music-streaming service, taking six accelerated since 2014. In June it said it year since 2006, says Thomson Reuters.
months to hit a milestone that took had reached 20m paying subscribers Jan 7 2016 The other time was 2013. In contrast,
arch-rival Spotify six years to reach, out of a total of more than 75m monthly €3bn has been raised in the euro invest-
people familiar with the matter say.
The rapid growth of Apple Music,
listeners. That figure is likely to have
increased further in the subsequent six
339.83 ment-grade bond market so far this
year.
which launched in more than 100 coun- months, during which time Spotify has Issuance in sterling corporate bonds,
tries in June, raises the stakes in stream- been riding high in Apple’s App Store Core fixed-income sales and trading known as bulldogs, has suffered in the
ing, a form of distribution that offers charts. This weekend, it was the third Change Q3 to Q4 (%) past three years as changing investor
hope to the music industry after more top-grossing app in the US App Store, -50 -40 -30 -20 -10 0 appetites and cheaper funding costs in
than a decade in the doldrums. suggesting that many iPhone users are Morgan Stanley other markets has hit demand.
“It’s good news that Apple is making already paying for Spotify subscriptions Investment-grade sterling bond issu-
streaming work but it is also going to using their iTunes accounts. Citigroup ance, excluding financials, fell from
accelerate the decline of downloads,” Just before Christmas, The Beatles JPMorgan
£26bn in 2012 to £12bn last year,
said Mark Mulligan, music industry back catalogue arrived on streaming according to Thomson Reuters.
analyst with Midia Research. Apple was services, bringing one of the last major Goldman Sachs Conversely, euro-denominated issu-
rapidly gaining on Spotify and at its cur- holdouts to digital streaming. 2014 ance has risen sharply since 2012. Lower
Bank of America
rent growth rate had “the potential to be Music is expected to become increas- 2015* interest rates and narrower credit
the leading music subscription service ingly important to Apple’s 2016 device US banks spreads in the euro market means it
sometime in 2017”. launches. The 9to5Mac blog reported costs less to borrow in single currency
* Estimates
Streaming is becoming the dominant last week that the company will ditch FT graphic Sources: Thomson Reuters Datastream; Credit Suisse Photo: Dreamstime
bonds.
form of digital music consumption and the 3.5mm headphone jack, the stand- “The sterling market has been suffer-
is growing rapidly as download sales ard on portable music players dating ing a slow death for years,” said Jim
decline. back to the original Sony Walkman in Leaviss, head of fixed interest at M&G
In the US, total sales of album down- 1979, on the next generation iPhone. ALISTAIR GRAY AND from their core debt sales and trading ronment is really, really bad,” he said. Investments. “Brexit will probably not
BEN MCLANNAHAN — NEW YORK
loads fell 9 per cent in 2014 while sales Instead, digital headphones would businesses in the quarter, Credit The corporate dealmaking boom help as it will create uncertainty.”
of individual tracks declined 12 per connect to its Lightning port, which is Wall Street banks are poised to Suisse estimates. helped relieve some of the pressure. James Stuttard, head of European
cent, according to Nielsen Music data. also used for charging and data transfer. unveil another batch of lacklustre This represents a mere 2 per cent But M&A fees were equivalent to just credit strategy at HSBC, said: “It is more
However, demand for streaming As well as providing higher-quality profits after the run-up to the Fed- improvement from an especially one-tenth of those from sales and expensive to borrow in pounds than
increased more than 50 per cent, with audio, the change could accelerate a eral Reserve’s historic interest rate tough period a year ago, and a 15 per trading at nine top investment banks euros, which has hit demand for sterling
164bn songs streamed. move towards wireless headphones, rise failed to boost their crucial trad- cent drop from the previous quarter. over the first nine months of the year. assets. Brexit uncertainty could under-
Spotify and Apple have a clear lead which can already connect over Blue- ing businesses. The end of the year is usually quiet The Fed’s rate increase came just mine demand further.”
over the competition. Deezer, the tooth to the iPhone and Apple Watch. as investors wind down ahead of the two weeks before the end of the quar- The pound has dropped about 6 per
France-based streaming service, has That would enable Apple to make the Results over the next week and a half festive break. Yet UBS analyst Bren- ter, limiting its positive impact on the cent against the euro and about 4 per
more than 6.3m users and recently next iPhone even thinner or free up are expected to show that the big five nan Hawken said that the fourth financial results. cent against the dollar over the past
scrapped a €300m initial public offering more space for other components such US investment banks generated even quarter was weaker than normal, as “Going in to the fourth quarter month, with some traders speculating
that would have valued it at €1bn. as batteries. At the same time, the com- less revenue from trading in the last nervous investors sat on their hands many investors felt there would have that Brexit is partly responsible.
Tidal, the artist-owned service led by pany would be able to promote compati- three months of the year than in the as the persistently weak oil price com- been a pick-up from the third, largely But bankers say the sterling corporate
hip hop artist Jay Z, reportedly hit 1m ble headphones from its Beats subsidi- troublesome third quarter. bined with fears over China. because of expectation the Fed was bond market will not die as some com-
subscribers in the same month. ary, which it acquired for $3bn in 2014 In total, the big five — JPMorgan Jitters had continued into the new going to increase rates,” said Gerard panies will always want pound assets,
Spotify, which has a valuation of more and formed the technical basis of its Chase, Goldman Sachs, Morgan year, Mr Hawken added, exacerbated Cassidy, analyst at RBC Capital Mar- while the dollar markets have stricter
than $8bn, has laid the groundwork for music subscription service. Stanley, Bank of America and Citi- by political tensions in Saudi Arabia kets. “These hopes were dashed.” rules on disclosure that make them less
an initial public offering. By the time it Apple declined to comment. group — produced $8bn of revenues and North Korea. “This type of envi- Small consolation page 22 appealing to some corporates.

Blow for hedge funds as poll finds that

investors intend to cut exposure in 2016
STEPHEN FOLEY — NEW YORK published this month in Preqin’s influ- quarter, but the Preqin survey suggests
ential annual report on the industry, that it may be close to peaking.
Global investors are planning to cut
also show that one in three investors A year ago, the same survey showed
their exposure to hedge funds in 2016
were disappointed by returns from their investors planning to raise holdings, by
following a disappointing performance
hedge fund portfolio in 2015 and have a margin of 26 per cent to 16 per cent
in the past year, a key survey has found.
less confidence in future returns than who said they planned to reduce expo-
The poll data, from research group Pre- they had a year ago. sure. The balance appeared to tip in the
Cohen comes out ahead in qin, will be met with dismay by the Institutions such as public pension middle of last year, when an interim poll
SEC insider trading battle hedge fund industry, which had hoped funds have been questioning the high by Preqin first showed a higher number
that wobbly stock markets would fees charged by hedge funds, sometimes planning to cut their holdings.
Fund manager Steven Cohen is the encourage investors to seek alternative as high as 2 per cent of assets, plus a 20 The forthcoming report comes on the
latest victor in a sprawling US probe sources of return. It is also likely to add per cent cut of investment profits, for heels of another disappointing year for
into insider trading that has largely extra pressure on hedge fund fees. several years, but have still ploughed hedge funds. Following losses in Decem-
fallen apart over the past year. Neither Preqin’s survey of institutional inves- more money into the industry in search ber, the industry ended down 0.85 per
the US attorney’s office in Manhattan tors showed that more are planning to of returns that are uncorrelated to tradi- cent for 2015, according to HFR’s fund-
nor the SEC had enough evidence to cut their hedge fund holdings this year tional equity and bond markets. weighted composite index.
bring charges against him. than are planning to increase them, by The size of the global hedge fund This was only the fourth calendar
Analysis i PAGE 16 32 per cent to 25 per cent. industry was assessed by research firm year since 1990 in which the industry
The downbeat results, which will be HFR at $2.9tn at the end of the third has shown a negative return, says HFR.

Companies / Sectors / People

Companies
Aabar................................................................6
Aberdeen.........................................FTfm1,2
Adswipe........................................................14
Ajinomoto.....................................................16
Alcoa...............................................................22
Aldi..................................................................22
Amber Capital...........................................17
Apple.........................................................15,18
Ardian.............................................................18
Armada Capital.........................................17
Associated British Foods...................22
Aviva Investors...............................FTfm3
BG Group......................................................17
Bank of America......................................15
BlaBlaCar......................................................18
BlackRock...........................................FTfm9
Blackstone...................................................16
BlueCrest..........................................FTfm16
Burberry.......................................................22
CLSA.....................................................FTfm6
Canadian Pension Plan............FTfm16
Charles Schwab..............................FTfm9
Cheniere Energy......................................17
Chevron.........................................................17
Citigroup.................................................15,22
Coima Res....................................................18
Coima Sgr....................................................18
Credit Suisse................................................6
De Agostini.................................................18
Deezer............................................................15
Deutsche Bank......................................6,18
Dreyfus................................................FTfm9
Eurotunnel...................................................12
ExxonMobil..................................................17
Facebook........................................................8
Fiat Chrysler...............................................18
Fidelity.................................................FTfm9
Ford.................................................................18
Franklin Templeton...................FTfm1,9
GPIF.......................................................FTfm7
Gazprom........................................16,FTfm8
General Motors.........................................18
Goldman Sachs....................15,22,FTfm1
Google...................................................8,14,18
Hines...............................................................18
Hitachi............................................................16
HypoVereinsBank,....................................6
Hyundai.........................................................18
Idea Res........................................................18
Instit’nal Shareholder Servs....FTfm6
Intel.................................................................22
International Media Group................17
Intesa Sanpaolo..........................................6
JPMorgan...............................................15,22
JPMorgan AM..................................FTfm9
John Lewis..................................................22
JuiceUp...........................................................11
Kinder Morgan..........................................17
Legg Mason.......................................FTfm1
Lidl...................................................................22
MFS........................................................FTfm9
MSCI......................................................FTfm6
Manchester United.................................14
Marks and Spencer...............................22
Morgan Stanley..................................15,22
Nevsky Capital..............................FTfm16
Nexans...........................................................17
Next.................................................................22
Novo Banco..................................................8
Olympus........................................16,FTfm6
Ontario Teachers’ Pen’ Plan.FTfm16
PFZW..............................................................18
PGGM.............................................................18
PSV Eindhoven.........................................14
Panasonic...........................................FTfm6
Parmalat ......................................................17
Petrobras......................................................16
Point72...........................................................16
Prisa.................................................................17
Putnam................................................FTfm9
Repsol.............................................................18
Rosneft..........................................................16
SAC Capital.................................................16
Santander.....................................................18
Saudi Aramco.........................................4,16
Sharp.....................................................FTfm6
Sony.......................................................FTfm6
Spotify............................................................15
T Rowe Price...................................FTfm9
Takata...................................................FTfm6
Tesco..............................................................22
Tidal.................................................................15
Toshiba.............................................FTfm1,6
Total................................................................18
UBS....................................................................6
UniCredit...................................................6,18
Vanguard............................................FTfm9
Vinci.................................................................12
Vodafone...................................................8,18
Volkswagen.................................................16
Weil, Gotshal & Manges......................12
Wells Enterprises.......................................3
Wells Fargo.................................................22
Sectors
Automobiles..........................................16,18
Banks...........................................6,8,10,15,22
Financial Services....................................18
Financials...........................................16,16,18
Media......................................................8,17,18
Mining............................................................22
Oil & Gas...................................................4,16
Personal & Household Goods.........22
Property........................................................18
Retail...............................................................22
Technology........................................8,15,22
Travel & Leisure.................................12,14
People
Barra, Mary.................................................18
Bazoli, Giovanni..........................................6
Bessent, Scott................................FTfm16
Bin Salman, Mohammed.......................4
Burghardt, Mathias.................................18
Catella, Manfredi......................................18
Clayton, David.................................FTfm3
Craston, Mike...................................FTfm3
Cyriac, Mathew.........................................16
Dickert, Sanford.......................................14
Fleming, Greg................................FTfm16
Godfrey, Daniel...............................FTfm4
Gorman, James.............................FTfm16
Gounon, Jacques.....................................12
Grilli, Vittorio................................................6
Gupta, Akhil................................................16
Huillard, Xavier.........................................12
Icahn, Carl....................................................17
Lewis, Dave................................................22
Luis Cebrián, Juan..................................17
Maddocks, Rhys.......................................14
Munro, Euan.....................................FTfm3
Nie, Michelle................................................11
Oughourlian, Joseph..............................17
Primo de Rivera, Fernando...............17
Ren, Tiffany.................................................11
Saccomanni, Fabrizio..............................6
Simkowitz, Dan.............................FTfm16
Soros, George................................FTfm16
Souki, Charif...........................................17,17
Taylor, Martin.................................FTfm16
Wang, Maggie.............................................11
Wells, Mike.....................................................3
Young, Hugh....................................FTfm2
Zuckerberg, Mark......................................8

© The Financial Times Limited 2016 Week 2

16 ★ FINANCIAL TIMES Monday 11 January 2016

COMPANIES
INSIDE BUSINESS
Automobiles
ON MONDAY

VW closes in on emissions fix for US Jonathan

Re-designed catalytic
converter and hardware
would fix 430,000 cars
ANDY SHARMAN — LONDON
Volkswagen has devised a new catalytic
converter that could fix the majority of
the cars in the US affected by the diesel
emissions scandal.
The German carmaker is trying to
for 8.5m cars, it has yet to find an accept-
able solution in the US.
One of the remedies under discussion
includes a catalytic converter that
would make some 430,000 diesel mod-
els compliant with US clean air rules,
said a person familiar with the matter.
The new hardware would also require
a software update. The Environmental
Protection Agency, which has set VW a
deadline of this week, has yet to approve
the solution.
of the 482,000 diesel vehicles in the US
fitted with a “lean NOX trap” system —
which does not use urea — would
require the fitting of a urea tank, as well
as software modifications.
The company declined to comment
on the catalytic converter proposal, say-
ing, “we’ve discussed several ideas with
the authorities. During last week and for
the following week we’ll have discus-
sions with the authorities about the next
steps [and] we hope to come closer to an
Ford
tor, as well as lawmakers in Washington.
The US visit marks a crucial test of
VW’s efforts to overcome its problems
in the country where the scandal
emerged in mid-September. “Next week
Why investors should
will be extremely important for VW
shareholders as a fix to the US situation
think twice over a
is the final remaining roadblock in deal-
ing with the diesel recall,” said Arndt
Ellinghorst, analyst at Evercore ISI, in a
stake in Saudi Aramco
600,000 note to clients last week.
Cars in the US Some reports had suggested last week

find a way to repair almost 600,000 cars
in the US affected by so-called defeat
devices, which VW admitted installing
to dupe test laboratories into thinking
that its vehicles emitted fewer pollut-
ants. The cheat software affects more
than 11m cars worldwide.
But while VW has been granted
approval in Europe to carry out soft-
ware patches and cheap hardware fixes
The US has much tougher rules on the agreement with them.”
polluting nitrogen oxides produced by The news, first reported in German
diesel engines than in Europe, making it newspaper Bild am Sonntag, came as
harder for VW to bring its American Matthias Müller arrived in the US for his
fleet into compliance. first visit as chief executive of the group.
Part of VW’s solutions for its US cars He was expected to speak at a VW pre-
may involve installing tanks of urea, the motor show party at the North America
chemical that helps break down NOX. International Auto Show in Detroit on
Michael Horn, head of VW North Amer- Sunday before meeting later in the week
ica, told Congress last year that 430,000 with Gina McCarthy, EPA administra-
Hedge funds. Insider trading
I
affected by the that VW would buy back more than tens magine for a moment that the Saudi Arabian govern-
diesel defeat of thousands of cars that could not be ment followed through on its vaguely expressed idea
devices installed
by VW
easily fixed, though the group dismissed of floating a stake in Saudi Aramco, the world’s biggest
this as “speculation”. oil producer. What exactly would investors be getting
8.5m The Department of Justice underlined for their cash?
Cars in Europe that the scale of the challenge facing VW last It certainly would not be a share in a straightforward
will be repaired week when it hit the world’s second-big- profitmaking enterprise. National oil companies tend to
through use of
software patches gest carmaker with a lawsuit on behalf be unconventional beasts at the best of times. And that is
and inexpensive of the EPA that sought billions of dollars especially true in Aramco’s case. So much so, that it is often
hardware fixes in penalties. hard to see where the state stops and the company begins.
Its myriad duties go far beyond extracting oil from the
ground. Aramco runs a university, a hospital service capa-
ble of treating 360,000 people and is responsible for the
flood defence network around Jeddah.
It is heavily involved in Saudi’s economic development
— constructing an industrial city in the country’s south-

Cohen walks away the winner in SEC fight
Ex- SAC Capital chief scores The investigation, which once held
promise of multiple hedge fund manag-
‘big victory’ as regulator ers facing prison, shows how difficult it
is for authorities to hold individuals
suffers another setback accountable, despite a renewed focus on
that by federal agencies.
GINA CHON — WASHINGTON Last autumn, the Department of Jus-
MARY CHILDS — NEW YORK tice issued new guidance calling on pros-
ecutors to focus more on bringing cases
Hedge fund manager Steven Cohen is against individuals, while Mary Jo
the latest winner in a sprawling US gov- White, SEC chair, has said that is also a
ernment probe of insider trading, which priority for her agency.
once stoked fear on Wall Street but has “This is a big victory for Cohen,” says
largely unravelled over the past year. Sam Lieberman, a partner at law firm
Mr Cohen will be barred until 2018 Sadis Goldberg. “It’s much harder to
from supervising funds that manage cli- bring sanctions against individuals
ent money, but had been facing the because they will fight harder and that’s
prospect of a lifetime ban for an insider the big takeaway in the Cohen case.
trading scandal that ensnared his Despite the government’s best efforts,
former firm, SAC Capital, and other it’s very hard to prove direct culpability.
hedge funds. And that won’t change just because offi-
The allegations have not stopped him cials are pushing to bring more cases
from rebuilding his fund, now called against individuals.”
Point72 and is a family office that man- SAC pleaded guilty to insider trading
ages Mr Cohen’s fortune. The company in 2013 and paid a $1.8bn fine. But nei-
generated 15.5 per cent net returns last ther the US Attorney’s office in Manhat-
year, compared with a loss of 0.85 per tan nor the SEC had enough evidence to
cent for the HFRI Fund Weighted Com- bring insider trading charges against Mr
posite index, according to data from Cohen. Instead, he was accused of the
Hedge Fund Research. lesser allegation of failing to supervise a
The ban, announced on Friday by the senior employee, Mathew Martoma,
Securities and Exchange Commission, who was sentenced to nine years in
came after federal prosecutors were prison in 2014.
forced to drop criminal charges against The SEC declined to comment.
seven others in the insider trading probe But people familiar with the case
last October. believe that given the findings, the set-
tlement was the best outcome the SEC
could obtain. Mr Cohen neither admit-
ted nor denied the SEC’s allegation.
People familiar with the case point
out that the two-year ban comes on top
of the five-year period during which Mr
Cohen has already stopped managing
outside money.
Also, unlike other private family
offices that are not registered with the
SEC, Point72 will be subject to examina-
tions by the regulator. This will allow the
SEC to keep sight of Mr Cohen’s fund
and meet the agency’s goal of ensuring
he will be a better supervisor of his
employees, the people said. Point72 also
must hire an independent consultant,
which will conduct regular reviews to
ensure compliance with securities laws.
The SEC faced a major setback in the
Cohen case after a federal appeals court
Wall Street fears threw out the convictions of two hedge
of numerous fund managers in related cases in
hedge fund December 2014. That ruling made it
managers facing more difficult to prove insider trading
prison have charges and led to the dismissal of
been further charges against Michael Steinberg, a
allayed with the former SAC portfolio manager.
light sentence The move wiped out a substantial
handed to basis of the SEC case against Mr Cohen,
Steven Cohen, who was initially accused of failing to
below supervise Mr Steinberg and Mr Mar-
Jewel Samad/AFP/Getty
Simon Dawson/Bloomberg
toma.
To begin managing external capital
again, Mr Cohen will have to submit
Point72 for SEC approval. Until then,
the firm will have to cultivate a stellar
investing record to show to future
potential clients, and a robust compli-
ance and surveillance programme that
will reassure regulators.
Mr Cohen would take in outside capi-
tal again only if it helped generate better
returns, a person familiar with the firm
said. With $11.1bn in assets under man-
agement, Point72 is not far off the $14bn
SAC ran when it went out of business,
which included about $6bn of external
client money.
The move from hedge fund SAC to the
Point72 family office is in keeping with a
broader industry trend. Seneca Capital
and Michael Platt’s BlueCrest were the
latest to push out external investors in
December. Other hedge funds including
Lucidus Capital Partners shut entirely.
Mr Cohen declined to comment.
west that is intended to boost non-oil exports. The com-
pany’s tentacles extend to shipbuilding and solar energy. It
even runs a technology hub in the city of Dahran.
Making sense of this behemoth is hard given the secrecy
that surrounds it. Perhaps understandably, given its stra-
tegic significance, Saudi Arabia has been wary of handing
out financial or operational data on the asset that supplies
not only nine-tenths of its government revenues but a sim-
ilar proportion of exports and more than half the country’s
gross domestic product.
Does any of this matter? One might argue not, given the
sheer weight of the company’s production and reserves.
Aramco is by far the world’s largest oil producer, pumping
around 12m barrels a day. According to admittedly unau-
dited data, it holds the largest agglomeration of reserves
anywhere, equivalent to some 268bn barrels of oil — bar-
rels that moreover cost less than almost anyone else’s to
extract from the ground. It is hard to see how it would not
be a core holding in any oil investors’ account.
Yet Aramco poses a question that should engage anyone
looking at buying into the privatisation of a national oil
company. Past experience may suggest that sell-offs lead
to improvements in productivity as companies become
more exposed to the disciplines of the market.
But these gains can easily be offset by governments dip-
ping into the cash flows,
either by twitching the fiscal
rules (which have yet to be
Making sense of
written in Aramco’s case) or this behemoth is
using their muscle to divert
money to political ends.
hard given the
Both factors have disfig- secrecy that
ured privatisations in Russia
and Brazil, where state con-
surrounds it
trolled but listed national
hydrocarbon producers trade at deep discounts. True,
Rosneft may also be labouring under financial sanctions
due to the Ukraine crisis. But shifting fiscal rules and
unscheduled political interventions have left the Russian
giant, which pumps 5m barrels a day, with an enterprise
value of just $60bn. That is a fraction of the $2tn plus that
reserve-based calculations suggest that Aramco might
command. Gazprom, whose production is equivalent to
some 8m barrels per day, is even more lowly rated — partly
because of the un-transparent “national” purposes to
which its enormous wealth is put. Meanwhile, Petrobras,
the Brazilian giant at the heart of a vast corruption scan-
dal, is menaced by bankruptcy, its $20bn of equity value
buried under $125bn of notional debt.
Oil is, of course, important both to Russia and Brazil. In
the former, it accounts for some 60 per cent of exports. But
nowhere is it as vital in the case of Saudi Arabia, where
hydrocarbons are still — to all intents and purposes —
nearly all the country has to sell abroad.
The Saudi government may be presenting Aramco’s pri-
vatisation as one part of a wider economic restructuring
designed to redress this imbalance. But it is hard to see its
purpose as much more than financial. Faced with a budget
deficit equivalent to some 15 per cent of GDP, the Saudi
state is seeking to bring forward revenues to plug the
yawning hole.
Investors are gambling that the revenues will ultimately
be there to repay what is in effect an advance to the monar-
chy. That may seem a relatively low risk bet, with oil prices
in the mid-$30s. But remember that the state has many
ways to change the rules should it ever need to do so. How-
ever hard the outlook for the Saudi treasury, it seems
unlikely the government would ever be prepared to cede a
majority stake. Ultimately then investors would be mak-
ing an asymmetric bet on an asset they could never con-
trol; one whose upside would most likely be capped while
its downside risk — should, say, in extremis, the regime
ever fall — could spell wipeout.
The Saudi kingdom is a conservative place. If Aramco is
ever sold, its valuation should be too.
jonathan.ford@ft.com

Financials Support services

Blackstone sees upturn in Indian operations
JAMES CRABTREE — MUMBAI
Blackstone’s Indian operations have
turned a corner, according to the
world’s largest manager of private
investments, which plans to match this
year the record $1.1bn it invested into
the country during 2015.
New York-listed Blackstone has put
more than $5bn into India since enter-
ing the market in 2005, making it the
country’s largest private investor by
assets with its holdings split almost
equally between its private equity and
property divisions.
However, its private equity portfolio
had struggled, leading it in 2013 to move
aside Akhil Gupta, previous head of the
division and mastermind of its aggres-
sive expansion in the country.
But Mathew Cyriac, co-head of pri-
vate equity, says the asset manager had
learned “important lessons” from its
earlier mis-steps, and now plans to
invest as much as $2.5bn in private
equity by 2020, while continuing to
expand its property holdings.
“2015 was a big year for us, but there is
no reason to think it was a one-off,” he
told the Financial Times. “There is
clearly enough deal flow for us to invest
$400m or $500m on an annual rate [in
private equity] over the next four to five
years.” Blackstone’s private equity arm
was hit as India’s economy slowed at the
start of this decade, but it was particu-
larly hurt by a series of poorly perform-
ing investments in sectors such as infra-
structure, power and financial services.
Its property investments are under-
stood to have performed more strongly,
following a rapid push into commercial
real estate which has seen it become
India’s largest owner of office parks.
Last year proved a bumper period for
private equity in India after years in the
doldrums. Buoyed by optimism over the
country’s improving economic outlook,
funds invested $21bn according to data
provider VCCEdge, beating the previous
high of $18bn in 2007.
Warning over Japanese push on patent laws
LEO LEWIS — TOKYO
Japan could face an exodus of scientific
talent as companies push for a more
rigid contract with staff under the
country’s intellectual property laws, a
leading inventor has warned.
The proposals, which centre on the
understanding of “reasonable compen-
sation” follow more than a decade of
clashes between inventors and their
employers that have embroiled Hitachi,
Olympus, Ajinomoto and other major
companies in litigation.
Nobel Prize laureate Shuji Nakamura
has warned that the expected new
guidelines will make it easier for compa-
nies to dictate to their employees what
constitutes “reasonable”, while that
right currently sits with the courts.
Professor Nakamura won his Nobel in
2014 for helping to invent an energy
efficient light source, blue light-emitting
diode. But he gained notoriety in 2001
when a sensational court victory
awarded him almost $200m for the
work. Originally his company, Nichia,
had given him a bonus of a few hundred
dollars for an invention that went on to
earn the company hundreds of millions.
His award was reduced to $8m. “The
Keidanren [business lobby] has been
pushing for this change since it was
shocked by the outcome of my case,” he
said, from California where he now lives
and works. “The government is making
a terrible move by giving Keidanren what
it wants. People will go to the US.”
Under current practices, companies
have to define “reasonable” during con-
tract negotiations with future employ-
ees likely to be producing valuable intel-
lectual property.
“It is a very controversial issue,” said
Hiroyuki Tanaka, lawyer. “Companies
wanted to abolish the compensation
system and leave it all to the contract
between themselves and the inventors.
The problem has always been that the
definition of ‘reasonable’ makes the sys-
tem very uncertain.”
Monday 11 January 2016
US will be a
gas supplier
to the world
by tomorrow
Excitement over momentous step for
energy market marred by oil price rout
ED CROOKS — NEW YORK
The Energy Atlantic, a 290-metre
tanker now steaming slowly through the
Gulf of Mexico, is about to make history.
It is scheduled to arrive tomorrow at
Cheniere Energy’s Sabine Pass liquefied
natural gas plant on the coast of Louisi-
ana, to be loaded with the first cargo of
LNG to be exported from the “lower 48”
contiguous states of the US.
That shipment is a momentous event
for energy markets, marking the arrival
of the US as a gas supplier to the world.
The plunge in oil prices since the sum-
mer of 2014 has dragged down the value
of LNG, which is often sold on crude-
linked contracts, and damped the
excitement over US exports. The eco-
nomics of shipping gas from the US were
compelling two years ago, but are now
marginal. Deteriorating market condi-
tions have put the brake on any new
investments in US LNG.
Even so, US LNG exports are likely to
have a significant impact, holding down
energy costs for consumers in Europe,
Latin America and Asia. They will also
provide tough competition for anyone
hoping to build rival LNG plants, such as
the proposed projects in east Africa, the
west of Canada, or Russia.
By the end of the decade, the US is
likely to be the world’s third-largest
exporter of LNG, after Qatar and Aus-
tralia.
Combined with the new supplies from
Chevron’s huge Gorgon and Wheatstone
projects in Australia, which are sched-
uled to come on stream this year,
exports from the US are making it a buy-
ers’ market for LNG.
“There is an awful lot of LNG sloshing
around the world at the moment, with
even more to come,” says Frank Harris
of Wood Mackenzie, a consultancy.
“And that is putting downward pressure
on prices.”
A decade ago, this prospect seemed
wildly unlikely. US gas production was
in decline, and by the 2010s the country
was expected to be a large importer of
LNG, not an exporter.
The shale revolution, the result of
advances in production techniques that
made it possible to extract gas at com-
mercially viable rates from previously
unyielding rocks, meant that US pro-
duction started rising again in 2006, and
since 2011 it has been breaking new
records every year.
Charif Souki, Cheniere’s visionary
founder, who was ejected from the com-
pany at the end of last year, was one of
the first to see the potential for LNG
exports from the US. In 2010, he submit-
ted the first application to regulators to
convert the LNG import terminal that
Cheniere had built at Sabine Pass, which
was being barely used because US
domestic gas production was so strong,
into a liquefaction plant.
Many in the industry were sceptical
that the project could be made to work,
Financial services
El País owner faces activist pressure on board
MILES JOHNSON
HEDGE FUND CORRESPONDENT
An activist hedge fund is pressing for a
corporate governance upheaval at the
owner of Spain’s El País newspaper
ahead of the board’s being put up for
renewal.
Amber Capital, a $1.5bn London-based
fund, has built a 15 per cent stake in
Grupo Prisa, the heavily indebted Span-
ish media group, allowing the UK
group’s chief executive Joseph Oughour-
lian to win a seat on Prisa’s board.
The hedge fund’s entrance increases
pressure on Juan Luis Cebrián, the
founding editor of El País and chairman
of Prisa. Under Mr Cebrián, Prisa’s share
price has plunged 95 per cent over the
past five years, making it the worst per-
forming large media stock in Europe.
The Amber Capital investment is a
rare example of an activist hedge fund
targeting a listed Spanish company,
especially one that controls some of the
country’s most influential media prop-
erties. Spain’s history of weak
shareholder rights and a series of
corporate scandals have tempered
but the plan took a decisive step forward
in October 2011 when Britain’s BG
Group signed a 20-year contract to buy
most of the production from Sabine
Pass’s first “train”, as LNG production
units are known. After that contract was
signed, the trickle of proposals for simi-
lar projects turned into a flood.
The US Department of Energy has
received applications to export LNG for
54 projects. If they all went ahead, they
would have the capacity to liquefy about
60 per cent of the entire gas production
of the US.
So far, however, just five plants have
started construction: Cheniere’s Sabine
Pass and its Corpus Christi project in
Texas; Freeport LNG, also in Texas;
Cameron LNG in Louisiana; and Cove
Point LNG, on the east coast in Mary-
land.
Those projects have been able to
make progress because they were fast
enough at signing up customers on long-
term contracts that guarantee their rev-
enues. Since the end of 2014 those cus-
tomers, mostly utilities in Europe and
Asia, have been reluctant to make any
further commitments.
The price of LNG delivered in north-
east Asia, including Japan and South
Korea, the world’s two largest markets,
has fallen along with oil. It has dropped
to about $6.65 per million British ther-
mal units, just a third of its price of
almost $19 per mBTU two years ago,
according to Argus, the information
service.
54 $6.65
Projects to export Fall in price of
LNG for which the LNG per mBTU, a
US has received third of its price
applications two years ago
At that price, with benchmark US gas
at about $2.40 per mBTU, plus liquefac-
tion costs of $3 to $3.50 per mBTU, plus
transport at about $2 per mBTU, LNG
from Louisiana or Texas does not look
commercially attractive.
Similar calculations apply in Europe.
Benchmark UK National Balancing
Point gas has dropped by almost a half
since 2013 to about $5.20 per mBTU,
meaning that LNG exports from the US
to Britain are unlikely to cover all of
their costs.
Since 2013, most of the new LNG
projects launched worldwide have been
in the US. However, the deteriorating
economics make it unlikely that any
new plants will be approved for a while.
The plants that have already started
interest from foreign activists. Grupo
Prisa, which owns other newspapers, a
set of TV and radio assets and the educa-
tional publisher Santillana, has been
criticised by some investors for the high
pay and lack of independence of its
board during a period where it has made
several billions of euros in losses.
Amber Capital specialises in activist
Shares in Prisa, the
owner of Spanish
newspaper
El País, have fallen
95% over the
past five years
investment in medium-sized European
companies and has forced out execu-
tives at other targets including Parmalat
in Italy and Nexans in France, among
others. It declined to comment.
Prisa said it had made progress cut-
ting debt and the investment by Amber
Capital and new shareholders demon-
strated confidence in its prospects. A
spokeswoman said Prisa would work
constructively with the new investors.
Mr Cebrián has served on the Prisa
★ FINANCIAL TIMES 17
COMPANIES
In the pipeline
Bittersweet moment
Ousted chief says it was
time for him to move on
For Charif Souki, the founder and
former chief executive of Cheniere
Energy who was ousted by the
board last month, the first
shipment of LNG from Sabine Pass
will be a source of mixed emotions.
“I’m very proud of the group of
people we put together,” he says
from Aspen, Colorado, where he
has been enjoying the skiing. “After
the first cargo goes, I’ll say it was a
nice story.”
It will also be a signal that it is
time for him to move on. He is still
involved with Cheniere: for the time
being he has a seat on the board,
and will be attending meetings, and
he is also a shareholder.
“I am curious to know where they
will take the company,” he says. But
he is also starting to think about
what comes next.
US LNG projects The board’s decision to remove
Oregon LNG (Oregon) him was understandable, he says,
Under construction
after directors rejected his plans for
Proposed projects furthest into Jordan Cove Energy (Oregon) ambitious expansion, including
review by regulators broadening the company’s scope
beyond LNG. His ejection was
supported by Carl Icahn, the
Magnolia LNG (Louisiana) Gulf LNG
activist investor who revealed a
(Mississippi) Cove Point (Maryland)
Lake Charles LNG stake in Cheniere last August and
(Louisiana) who now controls 13.8 per cent.
Southern LNG (Georgia)
“The board said ‘In this set of
circumstances, we don’t think
Freeport LNG Cameron LNG (Louisiana) you’re the right person to lead the
(Texas) Sabine Pass (Louisiana) company,’ and I don’t necessarily
disagree with that,” says Mr Souki.
Golden Pass LNG (Texas) “If they want to consolidate on
Corpus Christi (Texas) seven trains [LNG production
units], I don’t want to manage the
company.”
Gulf coast in detail
The oil and gas industry today,
LNG plants with crude below $35 per barrel,
offers “the most fantastic
Cheniere Energy Cheniere Energy Dominion Freeport LNG Cameron LNG opportunities”, he adds.
Location “Especially in today’s fragmented
industry, there is so much
Sabine Pass, Louisiana Corpus Christi, Texas Cove Point, Maryland Quintana, Texas Hackberry, Louisiana
opportunity, and I would have
Investment ($bn) found it extremely frustrating to sit
10.9 7.1 3.8 12.5 10.0 on the sidelines while running a
Start date boring utility-style company.”
In the spring Mr Souki plans to
Q1 2016 Late 2018 Late 2017 Early 2018 Early 2018 decide how he will take advantage
Estimated output (m tonnes per year) of those opportunities. For now, he
22.5 9.0 5.3 15.0 13.5 says, he will be taking advantage of
the excellent snow conditions.
Source: FT research
construction, though, are highly Trading Directory
unlikely to be stopped.
This is because the companies buying
LNG from one of these plants have typi-
cally made firm commitments for 20
years under which they have to pay the
charges they have promised, even if
they do not use the capacity.
The US LNG projects will add to global
oversupply. Bernstein Research has
estimated that the world’s liquefaction
capacity will in the next three years rise
by 90m tonnes per annum, which is
about 35 per cent of present demand.
Nikos Tsafos of Enalytica, a research
company, says that US LNG should help
hold gas prices down for a few years at
least.
When the global oversupply is finally
absorbed by rising demand, the next
wave of plants in the US, including
projects backed by ExxonMobil and
Kinder Morgan, will be poised to bene-
fit.
There are other promising potential
new sources of LNG in the world, includ-
ing the projects to develop large gas dis-
coveries off the coast of Mozambique.
But those are relatively unknown
quantities compared to the familiar pat-
terns of development in Texas and Loui-
siana.
“If those other projects don’t happen,
we can always resort to the US,” says Mr
Tsafos.
board for 32 years, while the director
responsible for remuneration and who
is classed as independent, has been on
the board for the same period.
Since 2007 Prisa has reported consoli-
dated losses of €2.2bn, while its board
has earned just under €80m over the
same period, according to the accounts,
with Mr Cebrián one of the highest paid
media executives in Europe.
He has brought in friendly sharehold-
ers to defend his position ahead of an
annual meeting this year, where the
board is up for re-election.
International Media Group, owned by
a member of Qatar’s royal family,
bought a 9 per cent stake in Prisa last
year at a premium of almost double the
share’s market value on the Madrid
stock exchange.
Armada Capital, a Spanish hedge
fund that holds 0.5 per cent of Prisa, has
already called for Mr Cebrián to resign.
“The company is trading at a huge
discount to its real value, let aside break
up value — and this mostly is due to the
presence of Mr Cebrián,” said Fernando
Primo de Rivera, chief investment
officer of Armada Capital.
18 ★ FINANCIAL TIMES Monday 11 January 2016

COMPANIES

Financials Financial services

PGGM to agree loans deal with Santander US investors

Pension fund manager
to sell credit insurance
against potential losses
THOMAS HALE
PGGM, one of the largest Dutch pension
fund managers, will today complete a
€2.3bn trade to insure loans of
Santander, the Spanish bank, in a deal
that highlights the growing appeal of
exotic financial instruments in a world
of ultra-low interest rates.
The two parties are finalising a so-
called “synthetic securitisation” deal, by
which PGGM will sell credit insurance
against potential losses on a portion of
more than 6,000 of Santander loans to
small and medium enterprises. The deal
illustrates how European pension funds
are exploring alternative ways to gener-
ate the returns needed to match their
liabilities. In the Netherlands, investors
have turned to the mortgage markets
and other alternative assets.
A “true sale” securitisation moves the
assets to a special-purpose investment
vehicle, which then issues bonds. A syn-
thetic securitisation does not transfer
the assets but uses privately negotiated
derivatives to transfer risk. PGGM has
been active in synthetic securitisations
for years but says the asset class is
important in a low-yield environment.
“We have several asset classes in pri-
vate markets growing because we have
difficulty indexing pensions. Synthetic
securitisation is one of these,” said Mas-
cha Canio, head of structured credit at
PGGM.
The public market for synthetic secu-
ritisations in Europe collapsed after the
financial crisis, in which complex prod-
ucts played a substantial role. But in
Europe private synthetic deals are
increasingly common. The European
Banking Authority estimates that issu-
ance hit €60bn last year, up from about
€40bn in 2014 and less than €10bn in
2010 — but points out that the private
market is difficult to measure and that
most deals are retained.
PGGM, which is acting on behalf of
pension fund PFZW, says its client
had €2.9bn invested in synthetic securi-
tisation at the end of the third quarter
Automobiles. Sales
in 2015, and expects that figure to rise.
Today’s deal also shines a spotlight on
the broader attempts to revive Europe’s
securitisation industry — a focal point of
a Brussels push for a capital markets
union designed to help reignite eco-
nomic growth across Europe. The Euro-
pean Commission is proposing “simple,
transparent and standardised” (STS)
securitisation, which will make the
products cheaper for investors.
Synthetic securitisations were not
included in the original draft, and do not
stand to benefit from cheaper capital
charges for STS deals. However, in late
December the European Banking
Authority recommended that the asset
class be included in the drive.
“Both issuers and investors in this
back Ardian’s
market have been engaging with regula-
tors and policymakers to include the
€2.6bn fund
benefits of STS for synthetic deals — it is
an important way for banks to share the
for European
risk and free up capital for re-lending,”
said Steve Gandy, head of debt capital
markets solutions at Santander. “This is
infrastructure
a stated goal of the regulators and
policymakers, and a way for them to JOSEPH COTTERILL — LONDON
promote financing to the SME sector.”
Ardian, the French alternative asset
He added that the financial technique
manager, has raised the largest ever
could suffer if it is not eventually
European infrastructure fund with
included. The European parliament is
backing from US investors fleeing ris-
still debating the final terms of its plan.
ing distress in North American energy
“The amount of capital we have to
assets.
assign to the tranches we retain in syn-
thetic deals, as a result of not being STS The €2.65bn vehicle, which is half as
eligible, will make these deals economi- large again as its predecessor fund at
cally unattractive in the future,” he said. Ardian, will invest in “essential” infra-
structure projects across Europe.
About a quarter of its capital came
from North American institutions,
including first-time US investors —
underlining the rise in recent years of a
global market in infrastructure assets,

Gas guzzlers still kings of the road in US
Industry caught in dilemma
between performance and
profit ahead of Detroit show
ROBERT WRIGHT — NEW YORK
As US carmakers confirmed 2015 as
their best year for sales last Tuesday,
few of their top executives were in the
industry’s Detroit hub to celebrate.
Many were 2,000 miles away in Las
Vegas for the Consumer Electronics
Show.
Yet distance was not the only thing
that separated the two events. The exec-
utives in Las Vegas were largely there to
promote cutting-edge technologies such
as General Motors’ electric Chevrolet
Bolt and driverless cars.
But back in the Motor City, the wel-
come sales figures were led by a surge —
encouraged by low fuel prices — in the
market for traditional pick-up trucks
and sports utility vehicles.
That disconnect is likely to be on view
at the US auto industry’s biggest annual
event, this week’s North American
International Auto Show in Detroit,
where carmakers will unveil the latest
in sophisticated electric and hybrid
vehicles but also showcase dozens of
big, relatively fuel-hungry vehicles.
The split highlights the competing
pressures on carmakers from regulators
— which have set strict fuel-economy
rules — and consumers, according to
Mark Wakefield, head of automotive for
consultancy AlixPartners.
“While gas prices were high, the moti-
vation of the regulators was lined up
with the motivation of the buying pub-
lic,” Mr Wakefield says.
“Now that gas prices are so low, those
technologies that are going to be
required [to improve fuel economy]
don’t show a payback.”
Matt DeLorenzo, managing editor of
Kelley Blue Book, the car-information
service, says many of the product
launches will be of workaday vehicles
very different from the Bolt. Among
them will be a new version of the Town
and Country minivan from Fiat Chrys-
ler and a big SUV from GM’s GMC pre-
mium truck brand.
“You will see a lot of vehicles that are
popular and make the profits to help
pay for these alternative-fuel vehicles,”
Mr DeLorenzo says.
He adds that carmakers want to
maintain momentum after the record
17.5m vehicle sales in the US last year.
General Motors “They hope to keep the ball rolling,” he
chairman and says. “Part of that is new product.”
CEO Mary Barra However, it remains vital for carmak-
shows off the ers that they launch more efficient mod-
new Chevy Bolt els to meet fuel economy rules. The reg-
electric vehicle, ulations, introduced in 2012, demand
but it is the less that they nearly double the average fuel
fuel-efficient economy — to 54.5 miles per US gallon —
models that are by the time 2025 model year vehicles go
proving popular on sale.
in the US That requires them to invest heavily
Alex Wong/Getty Images
in developing pure-electric vehicles
such as the Bolt and hybrids such as the
Ford Fusion plug-in, which is also
expected to be unveiled in Detroit.
“There are going to be a lot more
hybrids, and some electric vehicles,
shown [than there have been previ-
ously],” Mr Wakefield says. “The pro-
portion of hybrids and electric vehicles
that are going to be shown is well beyond
the 3 per cent of sales that hybrids and
electric vehicles make up.”
The big carmakers also want to show-
case their innovative vehicles in order to
head off the growing challenge from
technology companies such as Google,
which has launched a self-driving car.
“I think that the carmakers are very
cognisant of the desires of the Apples
and Googles of the world to get into their
business,” Mr DeLorenzo says. “They
will either partner with them or at least
won’t let them steal a march on their car
business.”
Most of the new vehicles on show will
be aimed at boosting profits, such as a
new version of Honda’s Ridgeline
pick-up designed for the US market.
SUVs and pick-up trucks are far more
profitable than conventional saloons.
This eye on profit margins also lies
behind a surge in luxury vehicles set to
be unveiled at the event. Ford’s Lincoln
brand, for example, will display the pro-
duction version of its Continental
saloon, while Hyundai will launch its
Genesis G90 luxury model.
The rush into the high-end cars — GM
17.5m alone has pledged to invest $12bn in
Number of vehicles Cadillac models — has raised concerns
sold in the US — a that the market may be reaching satura-
record — in 2015
tion point. Signs are there that the sales
54.5 boom may be at a peak, observers say.
Average miles to A “tremendous amount of activity” is
the gallon that US under way in the market’s upper
vehicles must reach reaches, according to Mr DeLorenzo.
by the time 2025
models go on sale “It’s coming to a point where there are
— double the maybe too many cars chasing too few
current requirement buyers.”
as pension funds and insurers scour the
world for real assets to replace low-
yielding bonds.
“The US market has always been an
energy market,” said Mathias
Burghardt, head of Ardian Infrastruc-
ture, adding that “US investors used to
be quite reluctant over Europe and the
rest of the world”.
But with the shale oil downturn lead-
ing to a dearth of new projects “they
realised that having access to transport
and other deals [in Europe] is very
attractive”.
The Ardian fund has already invested
€1bn in projects including Portuguese
toll roads and Italian airports. But it has
The US ‘realised that
having access to transport
and other deals [in
Europe] is very attractive’
also targeted the impact of falling oil
prices in Europe, buying storage facili-
ties from Repsol and Total last year.
Europe is by far the largest market for
projects, Mr Burghardt said.
In the low interest-rate environment
of recent years, institutional investors
have increasingly turned to infrastruc-
ture over bonds to provide long-term
cash flows for meeting liabilities such as
pensions payouts.
The Ardian fund will target overall
returns of 10 per cent, or a premium of
about 7 per cent over the rate on the
safest government bonds.
“We are back in an era of people start-
ing to speak about rising interest rates,”
Mr Burghardt said. “With bonds that
can lead to a capital loss” in contrast to
real assets with inflation protection.
According to Preqin, a data provider,
a record number of infrastructure funds
are being marketed to investors this
year, seeking to raise a total of $125bn,
up from $91bn at the same time last
year.
Some institutions are even investing
in infrastructure assets directly, such as
Ontario Teachers’ Pension Plan’s owner-
ship of the UK Channel tunnel rail link
and four airports across Europe.
Fund managers such as Ardian are
also increasingly emphasising the scope
for technological disruption of what are
typically monopolistic assets.
“[French ride-sharing start-up]
BlaBlaCar is the main threat to train
operators, as it’s often cheaper,” said Mr
Burghardt. “We used to think that trains
were impossible to replicate.
“It used to be a boring market — you’d
wait every year to receive your divi-
dend. That’s no longer true,” he added.

Property Media

Italian IPOs a test for recovering market
JUDITH EVANS
PROPERTY CORRESPONDENT
Two Italian real estate investment
trusts are planning initial public offer-
ings in coming weeks in a test of inves-
tor appetite for the country’s recover-
ing commercial property sector.
Coima Res, which is set to begin its
investor roadshow this week, and De
Agostini Group’s Idea Res, which also
has permission to begin the IPO process,
are the latest attempts at expanding
listed real estate in Italy.
The likely floats on Borsa Italiana
come as international investors show
increased interest in the country’s prop-
erty assets, turning their attention from
other post-crisis markets, such as Spain.
However, changes to Italy’s regulatory
regime aimed at making the format
more appealing were overshadowed by
two failed Reit IPOs last year. The latest
fundraisers must meanwhile contend
with market volatility prompted by the
turmoil in Chinese stocks.
“If they can swallow some discount
[to net asset value] at the time of the
IPO, it’s definitely worth being a Reit
versus a private vehicle,” said Peter
Papadakos, managing director at ana-
lyst Green Street Advisors.
“You would hope for a snowball effect
— if we do have more Reits in Italy, that
will help transparency and further Reit
growth in the country. The real estate
value in the hands of publicly traded
companies is substantially below where
it should be.”
Coima Res, which may float this
month, is being launched by Coima Sgr,
formerly majority owned by Texan real
estate investor Hines. The company
built Porta Nuova, the flagship €2bn
Milan mixed-use development.
The listed fund, which is seeking to
raise up to €600m, will be headed by
Manfredi Catella, a member of an Ital-
ian real estate dynasty who owns a
majority stake in the parent company. It
will focus on income-generating assets
and refurbishments.
Coima Res’ cornerstone investor is
Qatar’s sovereign wealth fund; the listed
fund will be seeded with investments in
a €145m portfolio of Deutsche Bank
branches and Vodafone’s €200m Milan
headquarters.
Idea Res, which wants to raise €400m
to €500m, will begin with a €268m port-
folio of branches of UniCredit, Italy’s
largest lender, and will be office focused
with some retail and logistics assets.
Italy’s listed real estate market has
been dogged by its size — it has just three
Reits — and concerns over transparency
and corporate governance.
But appetite for Italian property is ris-
ing: investment volumes came to about
€7.5bn last year, 45 per cent more than a
year earlier, largely driven by overseas
capital, according to CBRE, the property
advisers. It believes that the market
could reach €15bn in the medium term.
“We are now seeing privatisation,
loan book sales, urban regeneration,
increasing interest in alternative Italian
real estate sectors and new Reits, [all of
which] could contribute significantly to
this predicted market expansion,” said
Paolo Bellacosa, CBRE’s head of capital
markets for Italy.
Coima Res and Idea Res declined to
comment for regulatory reasons.
‘Star Wars’ awakens China’s box office takings
PATTI WALDMEIR — SHANGHAI
MATTHEW GARRAHAN — NEW YORK
Star Wars: The Force Awakens, has bro-
ken box office records in China after
bringing in $53m on Saturday and Sun-
day showings, helping lift its global
total to $1.73bn.
The film — the seventh movie in a fran-
chise that has spanned decades — is now
the third-highest grossing release
behind Avatar and Titanic. It also passed
a record set last year by the James Bond
movie Skyfall to become the highest
grossing movie released in the UK.
China is expected to make a hefty con-
tribution to the movie’s final box office
tally. The country is expected to become
the world’s largest film market in the
next two years and a strong perform-
ance by The Force Awakens there will put
it in a position to surpass Avatar as the
top-grossing movie ever released.
Film market analysts have pointed
out that the biggest films have per-
formed similarly in China and the US in
recent years.
The mainland opening attracted large
crowds, many of them aficionados of the
series who had first watched pirated
copies of earlier films.
Hu Bin, a 30-year-old office worker in
Shanghai, recalled relying on pirated
discs and online websites to watch the
Star Wars franchise. He was among the
first viewers to watch the new film at a
cinema in Shanghai. But he rated it “not
as good as I thought”.
Chinese showings of ‘Star Wars’ have
helped lift global takings to $1.73bn
Zhang Xiaobei, film critic for state
broadcaster CCTV and a Star Wars fan,
watched his first movie in the series in
1982. “The name itself brings back a lot
emotion from our generation,” he said.
“The early eighties was a time [in
China] when people craved contact with
the outside world, we were insatiably
curious about western culture, and we
were stunned after seeing the special
effects, and the scope of the human
imagination.”
Zi Feiyu, independent film critic, said:
“The Star Wars series has a group of die-
hard fans in China, even though the old
Star Wars series was never released in
China.”
The country’s total box office take
increased 49 per cent in 2015, according
to state figures, generating $6.8bn in
revenues. China is adding an average of
22 screens a day.
With global sales of more than $1.7bn,
The Force Awakens — directed by J.J.
Abrams — remains behind Avatar,
which made $2.8bn in 2009.
Additional reporting by Jackie Cai and
April Ma
Monday 11 January 2016 ★ FINANCIAL TIMES 19
20 ★ FINANCIAL TIMES Monday 11 January 2016

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 $

-1.08% -0.98% -1.02% -0.70% -1.49% -0.39% -0.82% -0.206% -0.326% -0.87% -0.41%
0.59% 0.739% 0.806%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Dec 09 - Jan 08 Index All World Dec 09 - Jan 08 Index All World Dec 09 - Jan 08 Index All World Dec 09 - Jan 08 Index All World Dec 09 - Jan 08 Index All World Dec 09 - Jan 08 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
19,698.15
2,063.59 13,042.83 6,223.52 10,752.10 1,952.07
1,917.62
12,445.45
5,912.44 9,849.34 17,697.96
1,922.03
Day -1.08% Month -7.46% Year -5.13% Day -0.02% Month -3.69% Year -13.92% Day -0.70% Month -3.37% Year -9.77% Day -1.31% Month -7.72% Year 0.12% Day -0.39% Month -10.15% Year 4.81% Day 0.70% Month -2.35% Year 1.87%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
9,778.70 21,905.13
5,098.24 1,437.77 2,876.03
42,447.77
20,453.71 2,751.23
40,265.37 1,340.60 8,909.20
4,643.63
Day -0.98% Month -8.98% Year -0.15% Day -0.97% Month -4.67% Year -5.04% Day -1.49% Month -6.57% Year -1.84% Day -1.66% Month -11.28% Year -9.93% Day 0.59% Month -7.88% Year -13.63% Day 0.78% Month -5.16% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
17,568.00 45,630.71 4,635.06 22,021.36
3,472.44 25,036.05 24,934.33
40,612.21 3,186.41
16,346.45 4,333.76 19,869.49
Day -1.02% Month -7.81% Year -7.04% Day -0.20% Month -8.62% Year -18.68% Day -1.59% Month -8.89% Year 5.37% Day -1.58% Month -7.75% Year 5.73% Day 1.97% Month -9.91% Year -5.56% Day 0.33% Month -2.33% Year -7.34%

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 11305.52 11390.37 Cyprus CSE M&P Gen 65.51 65.69 Italy FTSE Italia All-Share 21610.83 21938.55 Philippines Manila Comp 6575.43 6618.88 Taiwan Weighted Pr 7893.97 7852.06 Cross-Border DJ Global Titans ($) 219.66 221.86
Australia All Ordinaries 5049.40 5068.80 Czech Republic
PX 924.04 916.09 FTSE Italia Mid Cap 32795.23 33215.72 Poland Wig 43770.51 44195.91 Thailand Bangkok SET 1244.18 1224.83 Euro Stoxx 50 (Eur) 3033.47 3084.68
S&P/ASX 200 4990.80 5010.30 Denmark OMXC Copenahgen 20 969.75 985.40 FTSE MIB 19869.49 20189.48 Portugal PSI 20 5125.59 5141.24 Turkey BIST 100 71495.93 70688.10 Euronext 100 ID 850.02 864.86
S&P/ASX 200 Res 2271.20 2236.90 Egypt EGX 30 6922.71 7021.42 Japan 2nd Section 4590.12 4611.68 PSI General 2442.98 2452.77 UAE Abu Dhabi General Index 4134.97 4269.94 FTSE 4Good Global ($) 5051.69 5103.08
Austria ATX 2221.09 2297.63 Estonia OMX Tallinn 886.90 884.50 Nikkei 225 17697.96 17767.34 Romania BET Index 6708.54 6760.82 UK FT 30 2750.20 2752.40 FTSE All World 247.57 249.62
Belgium BEL 20 3493.98 3550.71 Finland OMX Helsinki General 8233.42 8201.10 S&P Topix 150 1191.68 1199.48 Russia Micex Index 1748.57 1754.13 FTSE 100 5912.44 5954.08 FTSE E300 1340.60 1360.87
BEL Mid 5778.30 5824.85 France CAC 40 4333.76 4403.58 Topix 1447.32 1457.94 RTX 736.82 752.70 FTSE 4Good UK 5406.95 5441.73 FTSE Eurotop 100 2649.63 2694.90
Brazil Bovespa 40612.21 40694.72 SBF 120 3431.02 3481.47 Jordan Amman SE 2117.43 2114.00 Saudi-Arabia TADAWUL All Share Index 6225.22 6517.71 FTSE All Share 3272.61 3293.30 FTSE Global 100 ($) 1224.02 1237.52
Canada S&P/TSX 60 729.86 730.36 Germany M-DAX 19321.93 19537.39 Kenya NSE 20 3940.42 4003.11 Singapore FTSE Straits Times 2751.23 2729.91 FTSE techMARK 100 3880.79 3886.61 FTSE Gold Min ($) 956.20 916.52
S&P/TSX Comp 12445.45 12448.21 TecDAX 1725.05 1745.34 Kuwait KSX Market Index 556.40 5564.15 Slovakia SAX 294.99 291.48 USA DJ Composite 5648.66 5689.62 FTSE Latibex Top (Eur) 2034.10 2113.30
S&P/TSX Met & Min 299.66 304.39 XETRA Dax 9849.34 9979.85 Latvia OMX Riga 595.05 592.35 Slovenia SBI TOP 681.03 684.96 DJ Industrial 16346.45 16514.10 FTSE Multinationals ($) 1404.32 1437.83
Chile IGPA Gen 17617.79 17624.77 Greece Athens Gen 585.98 590.75 Lithuania OMX Vilnius 485.88 483.82 South Africa FTSE/JSE All Share 48104.68 48052.78 DJ Transport 6946.36 6995.39 FTSE World ($) 438.99 442.92
China FTSE A200 8653.63 8486.91 FTSE/ASE 20 167.29 169.19 Luxembourg LuxX 1291.27 1319.82 FTSE/JSE Res 20 23611.63 23739.08 DJ Utilities 578.82 577.51 FTSEurofirst 100 (Eur) 3742.35 3802.69
FTSE B35 11163.86 10863.99 Hong Kong Hang Seng 20453.71 20333.34 Malaysia FTSE Bursa KLCI 1657.61 1655.13 FTSE/JSE Top 40 43253.30 43186.36 Nasdaq 100 4270.78 4305.72 FTSEurofirst 80 (Eur) 4091.43 4155.98
Shanghai A 3334.93 3270.71 HS China Enterprise 8845.89 8753.97 Mexico IPC 40265.37 40661.57 South Korea Kospi 1917.62 1904.33 Nasdaq Cmp 4643.63 4689.43 MSCI ACWI Fr ($) 377.91 386.28
Shanghai B 387.48 378.81 HSCC Red Chip 3711.00 3693.97 Morocco MASI 8856.09 8842.12 Kospi 200 233.68 231.93 NYSE Comp 9528.77 9650.42 MSCI All World ($) 1576.32 1610.17
Shanghai Comp 3186.41 3125.00 Hungary Bux 23956.19 23595.10 Netherlands AEX 410.82 420.76 Spain IBEX 35 8909.20 9059.30 S&P 500 1922.03 1943.09 MSCI Europe (Eur) 1341.69 1367.33
Shenzhen A 2069.10 2047.66 India BSE Sensex 24934.33 24851.83 AEX All Share 634.01 648.08 Sri Lanka CSE All Share 6726.28 6775.27 Wilshire 5000 19867.10 20089.53 MSCI Pacific ($) 2191.32 2236.62
Shenzhen B 1250.89 1219.73 S&P CNX 500 6490.85 6446.85 New Zealand NZX 50 6158.11 6213.39 Sweden OMX Stockholm 30 1348.76 1357.12 Venezuela IBC 14591.32 14591.32 S&P Euro (Eur) 1362.60 1383.34
Colombia COLCAP 1105.73 1129.32 Indonesia Jakarta Comp 4546.29 4530.45 Nigeria SE All Share 27266.18 27180.76 OMX Stockholm AS 471.97 475.51 Vietnam VNI 560.05 565.36 S&P Europe 350 (Eur) 1373.90 1394.72
Croatia CROBEX 1635.94 1649.99 Ireland ISEQ Overall 6566.45 6563.78 Norway Oslo All Share 601.12 603.92 Switzerland SMI Index 8257.28 8449.86 S&P Global 1200 ($) 1721.66 1740.86
Israel Tel Aviv 100 12.84 13.12 Pakistan KSE 100 32682.50 32682.50 Stoxx 50 (Eur) 2887.84 2943.94
(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 Jan 08 %Chg %Chg Jan 08 %Chg %Chg Jan 08 %Chg %Chg Jan 08 %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 68.4 96.96 0.51 Royal Dutch Shell 209.9 1375.50 -86.50 Novartis N 545.7 77.62 0.00 Toyota Motor 1098.8 6864.00 -34.00 Randgold Resources Ld 4401.00 6.2 6.2 Home Retail 137.90 38.5 38.5 Oxford Biomedica 7.45 14.6 14.6 Mobile Telecommunications 5140.22 1.1 1.1
Facebook Class A 34.3 97.33 -0.59 Vodafone 201.7 223.05 4.85 Nestle N 518.2 65.74 0.00 Fast Retailing Co., 954.5 38140.00 -910.00 Bae Systems 519.50 4.0 4.0 Vectura 188.50 7.1 7.1 Carclo 140.75 10.8 10.8 Aerospace & Defense 4135.94 0.0 0.0
Amazon.com 33.3 607.05 -0.89 Royal Dutch Shell 200.7 1375.00 -79.50 Daimler Ag Na O.n. 394.5 69.00 0.00 Mitsubishi Ufj Fin,. 545.3 707.70 -5.60 Tui Ag 1249.00 3.1 3.1 Rathbone Brothers 2295.00 4.3 4.3 Photo-me Int 163.00 7.9 7.9 Gas Water & Multiutilities 5884.08 -0.7 -0.7
Microsoft 25.4 52.33 0.16 Bg 157.3 940.00 3.10 Santander 385.2 4.04 -0.11 Softbank . 515.3 5695.00 -56.00 Vodafone 223.05 0.9 0.9 Rank 295.50 3.7 3.7 Xaar 450.50 7.3 7.3 Fixed Line Telecommunication 5242.84 -1.2 -1.2
General Electric 21.2 28.45 -0.52 Glaxosmithkline 146.1 1371.50 27.00 Roche Gs 383.1 248.76 0.00 Fuji Heavy Industries 462.2 4415.00 -60.00 Kingfisher 330.90 0.4 0.4 Acacia Mining 185.90 3.3 3.3 Hss Hire 76.25 5.9 5.9 Beverages 15130.23 -1.7 -1.7
Netflix 20.0 111.39 -3.17 Hsbc Holdings 145.7 499.10 -2.90 Royal Dutch Shella 362.8 18.51 -1.27 Fanuc 415.6 19125.00 185.00 National Grid 940.10 0.3 0.3 Euromoney Institutional Investor 1019.00 2.4 2.4 Carr's 162.00 5.2 5.2 Food & Drug Retailers 2444.86 -2.1 -2.1
Bank Of America 17.7 15.20 -0.30 Bp 127.8 328.70 -9.00 Total 343.1 37.35 -1.46 Sumitomo Mitsui Fin,. 413.2 4309.00 -34.00 Worldpay 308.00 0.2 0.2 Marshalls 332.10 2.2 2.2 Mj Gleeson 562.00 5.0 5.0 Industrial Transportation 2528.17 -2.6 -2.6
Alphabet Class C Capital Stock 17.5 714.47 -11.92 Rio Tinto 104.1 1739.00 -45.50 Bayer Ag Na 341.9 106.85 0.00 Sony 394.7 2824.50 28.00 Glaxosmithkline 1371.50 -0.1 -0.1 Morrison (wm) Supermarkets 151.20 2.0 2.0 Volution 200.00 5.0 5.0 Tobacco 44564.29 -3.0 -3.0
Alphabet Class A Common Stock 17.3 730.91 -10.09 Astrazeneca 96.1 4349.00 -32.00 Unicredit 328.8 4.67 -0.02 Mizuho Fin,. 385.4 229.40 -1.60 United Utilities 934.00 -0.2 -0.2 Telecity 1280.00 2.0 2.0 Sthree 340.50 4.4 4.4 Software & Computer Services 1595.51 -3.1 -3.1
Time Warner 15.8 71.17 0.97 Sabmiller 89.3 4035.00 -6.00 Telefonica 325.1 9.59 -0.24 Kddi 379.2 3005.00 -4.00 Sabmiller 4035.00 -0.8 -0.8 Betfair 3973.00 1.9 1.9 Aquarius Platinum Ld 11.75 4.4 4.4 Travel & Leisure 8760.56 -3.1 -3.1
Royal Mail 439.40 -1.0 -1.0 Centamin 65.45 1.6 1.6 Premier Farnell 102.00 4.1 4.1 General Industrials 4249.62 -3.2 -3.2
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
Bt 465.65 -1.3 -1.3 Jardine Lloyd Thompson 934.00 1.0 1.0 Mothercare 228.00 3.6 3.6 Media 7152.05 -3.4 -3.4
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Range Resources 25.75 1.65 6.85 Vectura 188.50 10.40 5.84 Numericable Sfr Sa 37.97 1.44 3.94 Ihi 302.00 11.00 3.78 Sports Direct Int 433.30 -24.9 -24.9 Poundland 166.90 -19.6 -19.6 Jpmorgan Overseas Investment Trust 202.00 -80.9 -80.9 Industrial Metals 620.47 -13.7 -13.7
Consol Energy 7.69 0.42 5.78 Tesco 146.90 7.70 5.53 Yara Int 37.22 1.01 2.79 Tokyo Electron 6990.00 252.00 3.74 Anglo American 229.20 -23.5 -23.5 Vedanta Resources 226.50 -17.7 -17.7 Premier Oil 30.00 -38.1 -38.1 Mining 6457.76 -11.8 -11.8
Viacom Class B 40.98 2.09 5.37 Elementis 216.50 9.20 4.44 Telenor 15.15 0.37 2.51 Dainippon Screen Mfg.co., 828.00 23.00 2.86 Antofagasta 398.30 -15.1 -15.1 Jimmy Choo 117.10 -17.1 -17.1 Lamprell 71.50 -28.1 -28.1 Oil Equipment & Services 11565.89 -10.9 -10.9
Eqt 54.45 2.58 4.97 Marston's 164.50 5.70 3.59 Accor 37.03 0.80 2.21 Nikon 1639.00 45.00 2.82 Glencore 77.48 -14.4 -14.4 Tullow Oil 138.90 -16.2 -16.2 Lonmin 60.75 -27.2 -27.2 Automobiles & Parts 6509.18 -9.6 -9.6
Cabot Oil & Gas 17.20 0.62 3.74 Rank 295.50 10.20 3.58 Electrolux Ab 21.45 0.38 1.82 Amada Co., 1116.00 28.00 2.57 Bhp Billiton 652.10 -14.2 -14.2 Weir 853.00 -14.7 -14.7 Game Digital 96.00 -20.7 -20.7 Technology Hardware & Equip. 1160.01 -8.8 -8.8
Aberdeen Asset Management 249.30 -13.9 -13.9 Ophir Energy 84.05 -14.6 -14.6 Hunting 246.25 -19.4 -19.4 Life Insurance 7121.03 -8.8 -8.8
Downs Downs Downs Downs
Old Mutual 155.90 -12.9 -12.9 Evraz 63.00 -14.0 -14.0 Oxford Instruments 652.50 -14.9 -14.9 Oil & Gas Producers 5188.46 -8.1 -8.1
The Gap 22.91 -3.83 -14.32 Sports Direct Int 433.30 -78.70 -15.37 Grifols Sa 14.99 -14.40 -48.99 Dena Co., 1676.00 -92.00 -5.20
Rio Tinto 1739.00 -12.1 -12.1 Drax 213.40 -12.7 -12.7 Johnston Press 43.25 -14.1 -14.1 Forestry & Paper 13173.37 -7.9 -7.9
Kohl's 47.88 -2.98 -5.86 Tullow Oil 138.90 -11.10 -7.40 Omv Ag 23.63 -1.75 -6.90 Pioneer 294.00 -14.00 -4.55
Royal Dutch Shell 1375.50 -10.9 -10.9 Cairn Energy 137.80 -12.6 -12.6 Imagination 115.50 -13.5 -13.5 Banks 3545.52 -6.8 -6.8
Seagate Technology 32.54 -2.00 -5.79 Jimmy Choo 117.10 -9.20 -7.28 Royal Dutch Shella 18.51 -1.27 -6.40 Seven & I Holdings Co., 5141.00 -171.00 -3.22
Direct Line Insurance 364.60 -10.5 -10.5 Petrofac 699.50 -12.1 -12.1 Gulf Marine Services 90.25 -13.0 -13.0 Industrial Engineering 6662.09 -6.7 -6.7
Maxim Integrated Products 32.33 -1.93 -5.63 Evraz 63.00 -4.60 -6.80 Erste Bank Ag 26.41 -1.40 -5.03 Chubu Electric Power ,orporated 1576.50 -48.50 -2.98
Standard Chartered 505.50 -10.3 -10.3 Telecom Plus 945.00 -11.8 -11.8 Kaz Minerals 90.00 -12.0 -12.0 General Financial 8805.70 -6.6 -6.6
Valero Energy 68.26 -3.83 -5.31 Royal Dutch Shell 1375.50 -86.50 -5.92 Statoil 11.32 -0.53 -4.43 Mitsui Mining And Smelting , 208.00 -6.00 -2.80
Prudential 1376.00 -10.1 -10.1 B&m Eur Value Retail S.a. 251.70 -11.6 -11.6 Enquest 16.75 -11.8 -11.8 Food Producers 8265.97 -6.6 -6.6
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
Jan 08 Currency Mid Change Mid Change Mid Change Jan 08 Currency Mid Change Mid Change Mid Change Jan 08 Currency Mid Change Mid Change Mid Change Jan 08 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 13.8659 -0.1208 15.1214 -0.0303 20.1588 -0.2168 Indonesia Indonesian Rupiah 13922.5000 -5.0000 15183.1698 95.5712 20241.1941 -48.2964 Poland Polish Zloty 3.9968 -0.0016 4.3587 0.0273 5.8107 -0.0141 ..Three Month 0.6878 0.0014 0.7499 0.0065 - -
Australia Australian Dollar 1.4334 0.0090 1.5632 0.0201 2.0839 0.0089 Israel Israeli Shekel 3.9228 -0.0068 4.2779 0.0211 5.7031 -0.0214 Romania Romanian Leu 4.1520 -0.0294 4.5280 -0.0018 6.0364 -0.0551 ..One Year 0.6882 0.0014 0.7493 0.0065 - -
Bahrain Bahrainin Dinar 0.3773 - 0.4114 0.0027 0.5485 -0.0011 Japan Japanese Yen 117.7250 -0.3850 128.3848 0.4369 171.1542 -0.9074 Russia Russian Ruble 74.5000 0.0500 81.2458 0.5946 108.3116 -0.1465 United States United States Dollar - - 1.0905 0.0073 1.4538 -0.0029
Bolivia Bolivian Boliviano 6.9100 0.0100 7.5357 0.0610 10.0461 -0.0058 ..One Month 117.7249 -0.3851 128.3848 0.4369 171.1541 -0.9076 Saudi Arabia Saudi Riyal 3.7550 - 4.0950 0.0272 5.4592 -0.0111 ..One Month - - 1.0905 -0.3662 1.4539 -0.0029
Brazil Brazilian Real 4.0433 0.0138 4.4094 0.0443 5.8783 0.0082 ..Three Month 117.7247 -0.3855 128.3848 0.4369 171.1538 -0.9082 Singapore Singapore Dollar 1.4411 0.0083 1.5716 0.0195 2.0951 0.0079 ..Three Month - - 1.0903 -0.3662 1.4539 -0.0029
Canada Canadian Dollar 1.4150 0.0086 1.5431 0.0196 2.0572 0.0084 ..One Year 117.7235 -0.3880 128.3848 0.4370 171.1541 -0.9093 South Africa South African Rand 16.1660 0.2190 17.6298 0.3545 23.5029 0.2714 ..One Year - - 1.0891 -0.3662 1.4542 -0.0029
Chile Chilean Peso 726.5600 5.6000 792.3488 11.3367 1056.3075 6.0190 Kenya Kenyan Shilling 102.2500 0.0500 111.5086 0.7959 148.6559 -0.2282 South Korea South Korean Won 1198.0000 -2.5500 1306.4769 5.9276 1741.7097 -7.2416 Venezuela Venezuelan Bolivar Fuerte 6.3053 0.0203 6.8762 0.0677 9.1669 0.0109
China Chinese Yuan 6.5888 -0.0043 7.1854 0.0431 9.5791 -0.0257 Kuwait Kuwaiti Dinar 0.3040 -0.0003 0.3315 0.0019 0.4419 -0.0013 Sweden Swedish Krona 8.5097 -0.0318 9.2802 0.0273 12.3718 -0.0713 Vietnam Vietnamese Dong 22475.0000 -22.5000 24510.1043 138.6442 32675.2537 -98.9517
Colombia Colombian Peso 3273.9550 -0.4850 3570.4059 23.2223 4759.8331 -10.3445 Malaysia Malaysian Ringgit 4.3850 -0.0085 4.7821 0.0226 6.3751 -0.0253 Switzerland Swiss Franc 0.9953 -0.0079 1.0854 -0.0014 1.4469 -0.0145 European Union Euro 0.9170 -0.0061 - - 1.3331 -0.0116
Costa Rica Costa Rican Colon 536.8200 1.3400 585.4281 5.3455 780.4545 0.3717 Mexico Mexican Peson 17.9183 0.2906 19.5408 0.4447 26.0505 0.3705 Taiwan New Taiwan Dollar 33.3030 -0.0230 36.3185 0.2167 48.4175 -0.1315 ..One Month 0.9169 -0.0061 - - 1.3331 -0.0116
Czech Republic Czech Koruna 24.7779 -0.1741 27.0214 -0.0089 36.0232 -0.3266 New Zealand New Zealand Dollar 1.5259 0.0206 1.6641 0.0333 2.2184 0.0255 Thailand Thai Baht 36.3050 0.0300 39.5924 0.2958 52.7819 -0.0632 ..Three Month 0.9167 -0.0061 - - 1.3330 -0.0116
Denmark Danish Krone 6.8405 -0.0461 7.4598 -0.0003 9.9450 -0.0872 Nigeria Nigerian Naira 199.2500 0.0200 217.2917 1.4670 289.6791 -0.5574 Tunisia Tunisian Dinar 2.0370 -0.0094 2.2214 0.0046 2.9614 -0.0197 ..One Year 0.9155 -0.0061 - - 1.3323 -0.0116
Egypt Egyptian Pound 7.8310 0.0246 8.5401 0.0835 11.3851 0.0128 Norway Norwegian Krone 8.9005 -0.0257 9.7065 0.0368 12.9400 -0.0636 Turkey Turkish Lira 3.0076 0.0162 3.2799 0.0393 4.3726 0.0147
Hong Kong Hong Kong Dollar 7.7635 0.0096 8.4665 0.0667 11.2869 -0.0089 Pakistan Pakistani Rupee 104.8950 -0.0100 114.3931 0.7500 152.5013 -0.3234 United Arab Emirates UAE Dirham 3.6729 -0.0001 4.0055 0.0265 5.3398 -0.0110
Hungary Hungarian Forint 289.7575 -0.1345 315.9945 1.9561 421.2633 -1.0490 Peru Peruvian Nuevo Sol 3.4295 0.0090 3.7400 0.0346 4.9860 0.0030 United Kingdom Pound Sterling 0.6878 0.0014 0.7501 0.0065 - -
India Indian Rupee 66.6738 -0.2237 72.7109 0.2412 96.9335 -0.5222 Philippines Philippine Peso 47.1600 0.1400 51.4303 0.4937 68.5635 0.0651 ..One Month 0.6878 0.0014 0.7501 0.0065 - -
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 Jan 08 Jan 07 Jan 06 Jan 05 Jan 04 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 2750.20 2752.40 2803.90 2824.80 2801.00 0.00 2875.90 2722.80 Leisure Goods 2.01 Consumer Goods -3.62 Chemicals -5.48 FTSE 100 Price Change FTSE 100 Price Change
Jan 08 chge% Index Jan 07 Jan 06 ago yield% Cover ratio adj Return FT 30 Div Yield 1.82 1.82 1.78 1.77 1.78 0.00 3.93 2.74 Mobile Telecomms 0.64 Health Care Eq & Srv -3.82 Personal Goods -5.50 3I Group PLC 449.00 -32.60 Kingfisher PLC 330.90 1.40
FTSE 100 (100) 5912.44 -0.70 6141.36 5954.08 6073.38 6501.14 4.20 1.46 16.28 0.90 4633.19 P/E Ratio net 24.46 24.55 25.04 25.20 25.02 0.00 19.44 14.26 Telecommunications -0.20 Electricity -3.85 Technology -6.05 Aberdeen Asset Management PLC 249.30 -40.10 Land Securities Group PLC 1118 -59.00
FTSE 250 (250) 16732.66 -0.35 17380.52 16792.22 17058.98 16010.96 2.68 1.93 19.35 5.11 11649.39 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Aerospace & Defense -0.29 Health Care -3.87 Food Producers -6.25 Admiral Group PLC 1620 -39.00 Legal & General Group PLC 246.00 -21.80
FTSE 250 ex Inv Co (209) 18189.65 -0.37 18893.92 18257.52 18551.29 17255.64 2.71 2.02 18.28 4.68 12912.46 FT 30 hourly changes Gas Water & Multi -0.91 Pharmace & Biotech -3.87 Financials -6.41 Anglo American PLC 229.20 -70.25 Lloyds Banking Group PLC 68.87 -4.20
FTSE 350 (350) 3317.83 -0.64 3446.29 3339.11 3403.52 3562.73 3.93 1.52 16.76 0.59 5240.58 8 9 10 11 12 13 14 15 16 High Low Fixed Line Telecomms -1.41 Nonlife Insurance -3.94 Industrial Eng -6.44 Antofagasta PLC 398.30 -71.00 London Stock Exchange Group PLC 2530 -214.00
FTSE 350 ex Investment Trusts (309) 3293.59 -0.65 3421.11 3315.04 3379.37 3541.34 3.96 1.52 16.57 0.56 2678.60 2752.4 2789.9 2786.9 2779.7 2772.6 2778.1 2785.5 2778.9 2762 2792.8 2750.2 Utilities -1.52 Industrials -3.98 Financial Services -6.75 Arm Holdings PLC 943.50 -95.50 Marks And Spencer Group PLC 430.70 -21.70
FTSE 350 Higher Yield (108) 2991.51 -0.93 3107.33 3019.45 3080.75 3488.76 5.82 1.28 13.43 0.80 4846.66 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Beverages -1.83 FTSE 250 Index -4.00 Banks -7.14 Ashtead Group PLC 1021 -98.00 Merlin Entertainments PLC 440.40 -15.10
FTSE 350 Lower Yield (242) 3333.90 -0.35 3462.98 3345.56 3406.70 3288.58 2.04 2.20 22.27 0.31 3529.06 Food & Drug Retailer -2.29 Real Est Invest & Tr -4.03 Forestry & Paper -8.32 Associated British Foods PLC 3033 -309.00 Mondi PLC 1223 -111.00
FTSE SmallCap (290) 4493.29 -0.39 4667.26 4510.65 4566.56 4390.10 2.92 1.37 25.08 2.67 6163.66 Industrial Transport -2.57 Real Est Invest & Se -4.04 Oil & Gas Producers -8.39
FTSE SmallCap ex Inv Co (155) 4080.70 -0.42 4238.70 4097.85 4152.06 3844.93 2.87 1.80 19.34 1.77 5877.26 FX: EFFECTIVE INDICES FTSE SmallCap Index -3.05 Household Goods & Ho -4.22 Oil & Gas -8.51
Astrazeneca PLC 4349 -267.50 National Grid PLC 940.10 2.60
Aviva PLC 476.90 -39.10 Next PLC 6825 -465.00
FTSE All-Share (640) 3272.61 -0.63 3399.32 3293.30 3356.00 3502.48 3.89 1.52 16.96 0.64 5229.18 Tobacco -3.21 Electronic & Elec Eq -4.28 Tech Hardware & Eq -8.78
Jan 07 Jan 06 Mnth Ago Jan 08 Jan 07 Mnth Ago Babcock International Group PLC 953.00 -63.00 Old Mutual PLC 155.90 -23.00
FTSE All-Share ex Inv Co (464) 3233.53 -0.64 3358.73 3254.43 3317.17 3467.82 3.94 1.53 16.62 0.56 2673.31 Travel & Leisure -3.27 NON FINANCIALS Index -4.47 Life Insurance -8.97 Bae Systems PLC 519.50 19.90 Pearson PLC 689.50 -46.50
FTSE All-Share ex Multinationals (575) 1145.67 -0.15 986.31 1147.40 1166.13 1122.71 2.92 1.56 21.94 0.25 1953.40 Australia 88.84 89.66 93.62 Sweden 79.60 79.45 79.37 Software & Comp Serv -3.30 General Retailers -4.68 Automobiles & Parts -9.73 Barclays PLC 200.15 -18.75 Persimmon PLC 1992 -35.00
FTSE Fledgling (100) 7613.15 0.09 7907.91 7605.94 7698.86 6882.98 2.53 1.18 33.41 7.84 13733.16 Canada 83.63 83.56 88.21 Switzerland 158.65 158.73 158.46 Media -3.55 Support Services -4.82 Basic Materials -10.79 Barratt Developments PLC 597.00 -29.00 Provident Financial PLC 3178 -189.00
FTSE Fledgling ex Inv Co (50) 10584.57 0.47 10994.38 10535.43 10646.73 8552.61 2.67 1.44 26.01 0.00 18555.12 Denmark 105.95 105.72 105.62 UK 89.74 90.37 92.15 Consumer Services -3.56 FTSE All{HY-}Share Index -4.98 Oil Equipment & Serv -11.65 Berkeley Group Holdings (The) PLC 3499 -189.00 Prudential PLC 1376 -155.00
FTSE All-Small (390) 3117.60 -0.36 3238.31 3128.90 3167.65 3034.84 2.90 1.36 25.40 1.92 5491.18 Japan 131.18 130.87 124.95 USA 106.23 106.68 105.58 Equity Invest Instr -3.56 Construct & Material -5.25 Mining -12.02 Bg Group PLC 940.00 -45.00 Randgold Resources LD 4401 258.00
FTSE All-Small ex Inv Co Index (205) 3048.17 -0.38 3166.19 3059.93 3100.10 2852.47 2.86 1.79 19.54 1.27 5562.36 New Zealand 113.30 113.24 114.99 Euro 86.15 85.60 85.90 FTSE 100 Index -5.28 Industrial Metals & -13.16 Bhp Billiton PLC 652.10 -107.90 Reckitt Benckiser Group PLC 5993 -288.00
FTSE AIM All-Share Index (855) 725.62 -0.06 753.71 726.08 734.05 703.45 1.51 0.64 103.63 0.26 781.23 Norway 82.64 82.65 85.97
BP PLC 328.70 -25.30 RELX PLC 1169 -28.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 3631 -140.00 Rio Tinto PLC 1739 -240.50
Oil & Gas (18) 5479.99 -3.69 5692.16 5689.76 5829.36 7309.24 6.87 0.20 72.88 0.00 4589.84 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 741.50 -44.50 Rolls-Royce Holdings PLC 559.50 -15.50
Oil & Gas Producers (11) 5216.75 -3.66 5418.74 5414.72 5543.20 6958.82 6.89 0.16 89.66 0.00 4517.99 Bt Group PLC 465.65 -6.05 Royal Bank Of Scotland Group PLC 283.50 -18.50
Oil Equipment Services & Distribution (7)12058.13 -4.58 12525.00 12636.77 13243.71 16004.72 6.32 1.41 11.23 0.00 8868.26 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 1832 -53.00 Royal Dutch Shell PLC 1375.5 -167.50
Basic Materials (28) 2446.31 -1.99 2541.03 2496.08 2605.29 4688.71 8.34 1.88 6.38 1.30 2399.89 Burberry Group PLC 1095 -100.00 Royal Dutch Shell PLC 1375 -151.00
Chemicals (7) 10883.19 -0.36 11304.56 10922.49 11210.83 12341.64 2.57 2.27 17.15 35.08 9385.94 Jan 08 No of US $ Day Mth YTD Total
YTD Gr Div Jan 08 No of US $ Day Mth YTD Total YTD Gr Div Capita PLC 1166 -42.00 Royal Mail PLC 439.40 -4.60
Forestry & Paper (1) 14374.57 -1.85 14931.12 14644.90 15079.78 12329.45 2.51 3.37 11.81 0.00 14931.91 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Carnival PLC 3773 -93.00 Rsa Insurance Group PLC 408.00 -18.50
Industrial Metals & Mining (2) 635.27 -6.33 659.87 678.23 714.00 1524.05 1.81 -18.64 -2.96 0.00 554.39 FTSE Global All Cap 7746 426.89 -2.2 -6.7 -5.3 584.28
-5.3 2.6 Oil & Gas 164 286.49 -2.5 -2.5 -6.1 437.85 -6.1 4.5 Centrica PLC 207.80 -10.30 Sabmiller PLC 4035 -34.50
Mining (18) 6201.45 -2.32 6441.56 6348.89 6656.31 13479.21 10.07 1.85 5.37 0.00 3183.93 FTSE Global All Cap 7109 439.35 -2.3 -6.6 -5.3 590.82
-5.3 2.6 Oil & Gas Producers 116 268.56 -2.4 -2.4 -5.9 417.73 -5.9 4.5 Coca-Cola Hbc AG 1401 -47.00 Sage Group PLC 577.50 -26.00
FTSE Global Large Cap 1416 377.15 -2.2 -6.7 -5.4 528.06
-5.4 2.8 Oil Equipment & Services 39 258.34 -3.1 -3.1 -6.9 360.18 -6.9 5.1 Compass Group PLC 1122 -53.00 Sainsbury (J) PLC 241.90 -16.90
Industrials (119) 4191.75 -0.10 4354.05 4195.82 4267.85 4280.44 2.62 1.19 31.96 0.03 4165.30
Construction & Materials (14) 5092.06 -0.59 5289.21 5122.07 5222.71 4243.52 2.31 -0.81 -53.64 0.00 5203.31 FTSE Global Mid Cap 1638 571.26 -1.9 -6.5 -5.1 746.25
-5.1 2.2 Basic Materials 261 327.03 -2.6 -2.6 -6.9 479.35 -6.9 3.6 Crh PLC 1849 -122.00 Schroders PLC 2681 -295.00
Aerospace & Defense (9) 4296.00 1.59 4462.34 4228.80 4300.32 4921.60 2.66 0.96 39.20 0.00 4441.19 FTSE Global Small Cap 4692 593.97 -2.3 -6.7 -5.3 753.59
-5.3 2.1 Chemicals 122 550.59 -2.3 -2.3 -6.9 809.29 -6.9 2.8 Dcc PLC 5375 -285.00 Severn Trent PLC 2140 -37.00
General Industrials (6) 3450.98 0.06 3584.60 3448.98 3495.86 3165.59 3.31 1.67 18.15 0.00 3756.99 FTSE All-World 3054 249.62 -2.1 -6.7 -5.3 360.45
-5.3 2.7 Forestry & Paper 16 184.56 -2.8 -2.8 -5.9 296.44 -5.9 3.7 Diageo PLC 1810 -46.50 Shire PLC 4277 -421.00
Electronic & Electrical Equipment (10) 5144.11 0.26 5343.28 5130.68 5225.38 5103.19 2.40 1.97 21.21 0.00 4555.67 FTSE World 2539 442.92 -2.1 -6.7 -5.3 858.77
-5.2 2.7 Industrial Metals & Mining 67 235.48 -3.8 -3.8 -8.5 346.77 -8.5 3.6 Direct Line Insurance Group PLC 364.60 -42.90 Sky PLC 1088 -24.00
Industrial Engineering (14) 7153.16 -0.67 7430.12 7201.22 7300.71 9004.70 3.43 1.57 18.55 0.00 8375.71 FTSE Global All Cap ex UNITED KINGDOM In 7421 438.86 -2.2 -6.6 -5.3 592.34
-5.3 2.5 Mining 56 304.27 -2.4 -2.4 -6.0 445.86 -6.0 7.1 Dixons Carphone PLC 463.30 -36.70 Smith & Nephew PLC 1155 -53.00
Industrial Transportation (8) 3834.94 0.95 3983.42 3798.67 3860.66 4083.12 3.96 0.94 26.93 0.00 3226.22 FTSE Global All Cap ex USA 5742 393.72 -1.9 -6.7 -5.6 571.47
-5.6 3.2 Industrials 534 281.58 -2.5 -2.5 -5.9 391.36 -5.9 2.4 Easyjet PLC 1713 -27.00 Smiths Group PLC 896.50 -43.00
Support Services (58) 6348.76 -0.65 6594.57 6390.03 6502.61 6322.68 2.39 1.52 27.63 0.08 6371.10 FTSE Global All Cap ex JAPAN 6484 433.95 -2.2 -6.9 -5.5 599.19
-5.4 2.7 Construction & Materials 109 393.66 -2.1 -2.1 -6.1 572.69 -6.0 2.3 Experian PLC 1111 -90.00 Sports Direct International PLC 433.30 -143.70
FTSE Developed 2101 404.49 -2.1 -6.5 -5.2 557.78
-5.2 2.6 Aerospace & Defense 28 487.66 -2.0 -2.0 -3.7 671.91 -3.7 2.2 Fresnillo PLC 693.00 -15.00 Sse PLC 1478 -50.00
Consumer Goods (40) 17639.30 -0.24 18322.26 17681.36 17965.34 16040.24 3.12 1.73 18.58 0.46 12443.75
FTSE Developed All Cap 5738 424.04 -2.1 -6.5 -5.2 578.43
-5.2 2.6 General Industrials 56 203.95 -2.9 -2.9 -6.0 304.42 -6.0 2.8 Gkn PLC 278.40 -30.00 St. James's Place PLC 921.50 -86.50
Automobiles & Parts (1) 6542.53 1.31 6795.84 6457.93 6702.33 7938.46 3.05 1.53 21.39 0.00 6016.77
FTSE Developed Large Cap 916 374.16 -2.1 -6.5 -5.2 522.99
-5.2 2.8 Electronic & Electrical Equipment 69 294.52 -2.7 -2.7 -6.9 377.51 -6.9 2.1 Glaxosmithkline PLC 1371.5 -1.50 Standard Chartered PLC 505.50 -58.20
Beverages (6) 15145.38 0.18 15731.78 15118.60 15344.14 13982.76 2.53 1.65 24.06 0.00 10315.88
FTSE Developed Europe Large Cap 219 311.73 -1.5 -7.2 -5.5 491.16
-5.5 3.7 Industrial Engineering 104 498.41 -2.7 -2.7 -7.0 681.59 -7.0 2.9 Glencore PLC 77.48 -13.00 Standard Life PLC 363.00 -26.70
Food Producers (10) 8360.34 -1.32 8684.03 8472.28 8636.03 8149.64 1.96 1.39 36.59 3.94 6999.53
FTSE Developed Europe Mid Cap 302 483.66 -1.4 -7.1 -5.7 692.89
-5.6 2.7 Industrial Transportation 96 463.21 -2.3 -2.3 -6.4 642.26 -6.4 2.6 Hammerson PLC 578.50 -21.50 Taylor Wimpey PLC 193.70 -9.40
Household Goods & Home Construction (13)13202.63 0.11 13713.81 13188.22 13374.64 10406.24 2.21 2.54 17.87 0.00 8981.38
FTSE Dev Europe Small Cap 721 693.28 -1.6 -6.3 -5.2 967.34
-5.2 2.4 Support Services 72 261.53 -2.3 -2.3 -5.2 349.48 -5.2 2.0 Hargreaves Lansdown PLC 1377 -129.00 Tesco PLC 146.90 -2.60
Leisure Goods (2) 5587.83 2.16 5804.18 5469.95 5530.97 4917.19 4.28 1.32 17.65 0.00 4732.54
FTSE North America Large Cap 318 414.53 -2.4 -6.5 -5.0 546.11
-5.0 2.4 Consumer Goods 422 395.43 -1.8 -1.8 -5.1 562.54 -5.1 2.6 Hikma Pharmaceuticals PLC 2197 -104.00 Travis Perkins PLC 1923 -50.00
Personal Goods (6) 21254.33 -0.22 22077.26 21300.94 21514.34 21451.74 3.07 3.01 10.82 0.00 13712.58
FTSE North America Mid Cap 393 607.94 -2.2 -6.9 -5.1 750.69
-5.0 1.9 Automobiles & Parts 103 348.17 -2.8 -2.8 -8.8 475.66 -8.8 2.8 HSBC Holdings PLC 499.10 -37.10 Tui AG 1249 38.00
Tobacco (2) 44564.37 -0.73 46289.81 44893.57 45756.03 40832.38 4.48 1.18 18.99 0.00 27158.53
FTSE North America Small Cap 1522 605.80 -2.6 -7.5 -5.6 727.92
-5.6 1.9 Beverages 48 554.65 -1.3 -1.3 -3.0 800.24 -3.0 2.5 Imperial Tobacco Group PLC 3508.5 -78.00 Unilever PLC 2778.5 -148.00
Health Care (19) 9121.81 0.22 9474.99 9102.10 9332.84 9495.44 3.83 3.53 7.39 0.00 6651.09
FTSE North America 711 276.74 -2.4 -6.6 -5.0 373.60
-5.0 2.3 Food Producers 106 534.63 -1.9 -1.9 -4.3 782.90 -4.2 2.3 Inmarsat PLC 1106 -31.00 United Utilities Group PLC 934.00 -1.50
Health Care Equipment & Services (7) 7093.40 -0.74 7368.05 7146.05 7200.61 6818.26 1.60 2.16 28.98 0.00 6014.24
FTSE Developed ex North America 1390 214.34 -1.7 -6.4 -5.5 333.73
-5.4 3.2 Household Goods & Home Construction 47 383.26 -1.6 -1.6 -4.6 541.90 -4.6 2.4 Intercontinental Hotels Group PLC 2519 -139.00 Vodafone Group PLC 223.05 2.05
Pharmaceuticals & Biotechnology (12)12307.07 0.31 12783.58 12269.45 12601.01 12913.15 4.04 3.58 6.91 0.00 7970.95
FTSE Japan Large Cap 177 313.08 -1.8 -4.6 -4.5 391.63
-4.5 2.1 Leisure Goods 28 122.53 -1.6 -1.6 -7.1 157.73 -7.1 1.5 International Consolidated Airlines Group S.A. 590.50 -20.00 Whitbread PLC 4120 -281.00
Consumer Services (97) 4739.18 0.22 4922.68 4728.82 4799.93 4533.49 2.39 1.60 26.13 0.36 4278.05 FTSE Japan Mid Cap 303 474.85 -1.3 -3.5 -3.4 573.73
-3.4 1.6 Personal Goods 79 569.45 -1.2 -1.2 -4.7 771.81 -4.7 2.1
Food & Drug Retailers (7) 2549.81 3.14 2648.53 2472.28 2497.86 3052.65 2.10 -1.50 -31.71 0.00 2915.72 Intertek Group PLC 2658 -119.00 Wolseley PLC 3446 -245.00
FTSE Global wi JAPAN Small Cap 782 509.39 -1.2 -2.8 -3.2 635.24
-3.2 1.9 Tobacco 11 1196.75 -1.4 -1.4 -1.7 2338.66 -1.7 4.1 Intu Properties PLC 299.70 -17.60 Worldpay Group PLC 308.00 0.70
General Retailers (32) 2803.62 -0.99 2912.17 2831.65 2867.43 2816.67 2.58 2.24 17.28 0.18 3073.31
FTSE Japan 480 130.55 -1.7 -4.4 2.0 Health Care
-4.2 183.49
-4.2 173 440.23 -1.8 -1.8 -3.9 613.26 -3.9 1.9 Itv PLC 266.50 -10.10 Wpp PLC 1464 -99.00
Media (22) 7246.96 -0.22 7527.55 7263.27 7365.95 6583.25 2.82 1.62 21.89 1.47 4279.38
FTSE Asia Pacific Large Cap ex Japan 530 502.00 -2.7 -7.2 -7.2 750.92
-7.2 3.5 Health Care Equipment & Services 61 626.81 -1.8 -1.8 -3.5 718.84 -3.5 1.0 Johnson Matthey PLC 2530 -127.00
Travel & Leisure (36) 8558.78 0.54 8890.16 8512.73 8668.62 7775.27 2.01 1.95 25.52 0.00 7800.05
FTSE Asia Pacific Mid Cap ex Japan 430 701.82 -2.6 -5.4 -6.0 1012.54
-6.0 3.1 Pharmaceuticals & Biotechnology 112 333.70 -1.8 -1.8 -4.1 482.99 -4.1 2.2
Telecommunications (7) 3990.48 1.44 4144.98 3933.89 3960.18 3724.92 4.10 0.18 133.17 0.00 4181.44 FTSE Asia Pacific Small Cap ex Japan 1425 473.21 -2.3 -5.4 -5.2 673.55
-5.2 2.9 Consumer Services 386 372.50 -1.6 -1.6 -4.4 484.01 -4.4 1.8
Fixed Line Telecommunications (5) 5329.76 0.58 5536.12 5299.04 5354.07 4543.38 2.91 1.74 19.77 0.00 4622.25
Mobile Telecommunications (2) 5132.44 2.03 5331.16 5030.53 5051.42 5067.16 4.90 -0.44 -46.44 0.00 4800.22
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
960
2008
399.00
532.30
-2.7
-2.8
-7.0
-8.3
-7.1 634.39
-7.1 3.5 Food & Drug Retailers
-6.8 759.24
-6.8 3.4 General Retailers
54 287.42
121 511.12
-1.2
-1.5
-1.2
-1.5
-4.1 388.63
-4.1 647.99
-4.1
-4.1
1.9
1.6
UK STOCK MARKET TRADING DATA
Utilities (7) 8271.89 -0.77 8592.17 8335.69 8401.37 8737.96 4.90 1.36 14.97 0.00 8809.32 FTSE Emerging Large Cap 500 499.73 -2.9 -8.7 -7.2 717.21
-7.2 3.5 Media 87 276.66 -1.4 -1.4 -4.4 360.35 -4.3 1.9 Jan 08 Jan 07 Jan 06 Jan 05 Jan 04 Yr Ago
Electricity (2) 8449.64 -0.69 8776.79 8508.19 8700.03 9448.70 5.97 1.35 12.44 0.00 11240.44 FTSE Emerging Mid Cap 453 671.71 -2.6 -6.8 -5.4 953.15
-5.4 3.1 Travel & Leisure 124 361.38 -2.4 -2.4 -5.3 474.02 -5.3 1.8 SEAQ Bargains 4970.00 4808.00 4944.00 5912.00 3576.00 3576.00
Gas Water & Multiutilities (5) 7776.41 -0.78 8077.50 7837.94 7870.54 8091.04 4.63 1.37 15.78 0.00 8314.41 FTSE Emerging Small Cap 1055 580.90 -2.7 -6.6 -5.6 798.60
-5.6 3.1 Telecommunication 92 152.13 -1.1 -1.1 -3.4 268.76 -3.0 4.4 Order Book Turnover (m) 35.69 35.41 - 32.32 10.16 10.16
Financials (285) 4279.53 -0.79 4445.22 4313.54 4401.13 4596.03 3.83 1.87 13.95 2.60 3740.00 FTSE Emerging Europe 99 257.37 -0.1 -6.7 -3.6 378.23
-3.6 4.5 Fixed Line Telecommuniations 44 129.14 -0.9 -0.9 -2.6 250.19 -1.9 4.8 Order Book Bargains 986020.00 895039.00 10.00 848422.00 178565.00 178565.00
Banks (9) 3500.84 -1.01 3636.39 3536.66 3602.41 4217.29 4.69 1.37 15.60 0.00 2413.24 FTSE Latin America All Cap 245 555.67 -3.0 -11.4 -7.2 821.30
-7.1 3.9 Mobile Telecommunications 48 157.28 -1.4 -1.4 -4.5 250.99 -4.5 3.7 Order Book Shares Traded (m) 1457.00 1301.00 0.00 1267.00 360.00 360.00
Nonlife Insurance (11) 2722.87 0.09 2828.29 2720.40 2747.72 2258.41 2.76 2.06 17.55 0.00 4576.07 FTSE Middle East and Africa All Cap 220 579.32 -3.1 -9.1 -6.3 863.42
-6.3 3.0 Utilities 162 232.64 -0.8 -0.8 -1.9 426.21 -1.9 4.0 Total Equity Turnover (£m) 2647.85 3358.59 - - 0.25 0.25
Life Insurance/Assurance (11) 7228.33 -0.62 7508.19 7273.37 7501.70 7580.66 4.19 1.59 15.02 0.00 6635.68 FTSE Global wi UNITED KINGDOM All Cap In 325 310.56 -2.2 -7.4 -5.6 490.87
-5.6 4.0 Electricity 111 255.43 -0.6 -0.6 -1.3 463.08 -1.3 3.8 Total Mkt Bargains 1075893.00 990201.00 20.00 - 10.00 10.00
Index- Real Estate Investment & Services (21) 2959.76 -0.97 3074.36 2988.62 3036.10 2695.04 2.14 5.73 8.14 0.00 7609.01 FTSE Global wi USA All Cap 2004 475.81 -2.4 -6.6 -5.1 610.16
-5.0 2.2 Gas Water & Multiutilities 51 244.22 -1.3 -1.3 -3.0 458.67 -3.0 4.5 Total Shares Traded (m) 5408.00 4635.00 11.00 - 0.00 0.00
Real Estate Investment Trusts (25) 2834.87 -1.43 2944.63 2876.14 2928.78 2792.80 3.11 5.94 5.40 4.93 3356.01 FTSE Europe All Cap 1401 360.41 -1.4 -7.1 -5.5 550.71
-5.5 3.4 Financials 675 188.22 -2.4 -2.4 -6.2 292.54 -6.2 3.2 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 7538.16 -0.76 7830.03 7595.55 7787.58 7229.41 3.07 2.20 14.80 24.67 8207.62 FTSE Eurobloc All Cap 637 338.25 -1.0 -7.7 -5.7 522.72
-5.7 3.2 Banks 243 166.28 -2.5 -2.5 -6.8 275.41 -6.8 3.7 (c) Market closed.
Equity Investment Instruments (176) 7432.78 -0.29 7720.57 7454.07 7552.54 7554.55 2.72 1.08 34.14 5.13 3911.47 FTSE RAFI All World 3000 3007 5136.25 -2.0 -6.8 -5.3 6472.92
-5.3 3.3 Nonlife Insurance 71 204.76 -1.5 -1.5 -4.5 285.02 -4.5 2.4
Non Financials (355) 3805.13 -0.57 3952.46 3827.00 3898.14 4066.60 3.91 1.39 18.37 0.18 5328.98 FTSE RAFI US 1000 999 8417.24 -2.3 -6.2 -4.8 10649.82
-4.7 2.7 Life Insurance 51 180.84 -3.3 -3.3 -8.8 274.39 -8.8 3.2
Technology (20) 1354.34 -0.95 1406.78 1367.38 1385.00 1225.12 1.46 1.92 35.81 0.00 1693.58 FTSE EDHEC-Risk Efficient All-World 3054 300.94 -1.8 -5.7 -4.6 404.56
-4.6 2.4 Financial Services 141 206.70 -2.8 -2.8 -7.1 275.50 -7.0 2.1 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (14) 1785.17 0.46 1854.28 1777.05 1807.10 1366.71 1.85 1.74 31.23 0.00 2340.11 FTSE EDHEC-Risk Efficient Developed Europe 521 265.30 -1.3 -6.5 -5.0 387.33
-5.0 2.8 Technology 185 163.26 -2.9 -2.9 -6.3 194.81 -6.3 1.8 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (6) 1451.53 -2.39 1507.73 1487.14 1500.17 1501.47 1.05 2.25 42.33 0.00 1666.22 Software & Computer Services 85 293.44 -2.7 -2.7 -5.4 336.84 -5.4 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 100 117.06 -3.2 -3.2 -7.4 143.70 -7.3 2.7 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 5980.29 6008.75 6001.00 5984.12 5962.44 5978.44 5993.56 5977.48 5937.90 6013.24 5912.44 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 16830.98 16938.38 16910.13 16879.08 16835.07 16849.03 16866.94 16830.09 16776.21 16948.65 16732.66 (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 4511.09 4533.01 4531.32 4525.82 4519.19 4522.16 4521.92 4517.63 4509.30 4535.76 4493.29
FTSE All-Share 3306.08 3322.76 3318.36 3309.78 3298.63 3306.18 3313.39 3305.00 3285.58 3324.90 3272.61 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:09:04:30 Day's Low16:35:29 FTSE 100 2010/11 High: 6242.32(01/01/2016) Low: 5954.08(07/01/2016) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:09:05:00 Day's Low16:40:44 FTSE 100 2010/11 High: 3444.26(01/01/2016) Low: 3293.30(07/01/2016)
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 APC Technology Group Pre 31.069 20.634 4.799L 0.382 6.8L 1 - - - - - date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Games Workshop Group Int 55.259 56.503 6.287 6.285 14.9 14.5 - 16 - - 16 12/24 144.00 AIM DNL Diurnal Group PLC 150.00 -0.50 155.00 149.00 7831.6
460p nil 19-01-16 779.50 763.50 RPC Group PLC 763.50 -8.50 Oxford Technology 2 Venture Capital Trust 3rd 0.243 - 0.189 - 2.8 - - - - - - 12/17 2.00 LVRT Levrett PLC 2.25 0.00 3.10 1.75 215.4
Oxford Technology 3 Venture Capital Trust 3rd 0.539 - 0.541 - 7.9 - - - - - - 12/17 100.00 AIM PURP Purplebricks Group PLC 90.50 -0.26 106.50 87.30 21743.5
Scientific Digital Imaging Int 3.671 3.188 0.013 0.227L 0.04 0.82L - - - - - 12/11 3.50 AIM WEY Wey Education PLC 4.25 0.00 4.37 3.88 399.4

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 11 January 2016 ★ 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) ArcherDan 34.39 -2.29 53.31 33.84 3.01 12.38 20521.88 Lockheed 212.91 -4.24 227.91 181.91 2.70 19.69 65426.28
ANZ 25.54 -2.39 37.25 25.01 9.78 10.28 51985.14 Nokia 6.78 0.19 7.87 4.91 2.03 -47.47 29522.91 AstellasPh 1677 -54.50 2047 1514.5 1.80 23.06 31650 AtlasCpcoB 179.00 -16.30 270.00 173.50 1.63 15.98 8208.19 AT&T♦ 33.54 -0.87 36.45 30.97 5.38 36.84 206338.08 Lowes 70.88 -5.16 78.13 64.22 1.35 23.77 64862.61
BHPBilltn 16.35 -1.51 34.29 15.95 14.33 18.90 36634.51 SampoA 44.48 -2.52 49.40 37.72 4.31 15.04 27106.04 Bridgestne 3969 -205.00 5182 3753.5 2.85 12.20 27413.06 Ericsson 78.20 -4.10 120.00 75.30 4.12 26.28 30371.33 AutomData 78.13 -6.59 90.67 64.29 2.41 27.10 36034.07 Lyondell 79.59 -7.31 107.32 71.74 3.57 8.90 35771.23
CmwBkAu 79.42 -6.11 96.69 70.15 7.58 14.75 94610.78 France (€) Canon 3382 -293.00 4539 3367 4.46 17.87 38316.32 H&M 280.50 -21.60 368.50 274.10 3.30 22.68 54555.11 Avago Tech 128.20 -16.95 150.50 99.16 1.14 27.51 35445.96 Marathon Ptl 46.19 -5.65 60.38 37.62 2.22 7.61 24618.07
CSL 103.12 -2.19 107.18 81.48 1.38 26.61 33303.72 Airbus Grpe 58.76 -3.24 68.50 43.74 2.01 16.52 50324.67 CntJpRwy 20405-1195.00 24800 17170 0.55 14.54 35705.5 Investor 290.80 -21.80 363.40 266.60 3.01 14.50 26034.18 BakerHu 41.58 -4.57 70.45 41.38 1.57 -69.47 18132.48 Marsh&M 52.95 -2.50 59.99 50.90 2.65 20.10 27621.27
NatAusBk 27.72 -2.48 39.71 27.31 9.79 11.75 51013.84 AirLiquide 95.10 -8.55 123.95 95.10 2.53 19.72 35690.52 Denso 5196 -622.00 6548 4945 2.23 16.93 39019.93 Nordea Bk 88.80 -4.50 115.50 86.35 6.37 10.61 42261.86 BankAm 15.20 -1.63 18.48 14.60 1.26 11.87 158269.69 MasterCard♦ 89.89 -7.47 101.76 74.61 0.68 28.82 98899.99
Telstra 5.30 -0.31 6.74 5.06 8.24 15.17 45204.97 AXA 23.25 -1.99 26.02 18.21 3.86 11.79 61462 EastJpRwy 10875 -575.00 12815 8717 1.08 21.37 36257.7 SEB 82.10 -7.30 111.50 80.75 5.63 10.51 20935.93 Baxter 36.20 -1.95 43.44 32.18 4.44 11.30 19802.04 McDonald's 115.48 -2.66 120.23 87.50 2.83 26.06 106037.18
Wesfarmers 39.65 -1.96 46.95 36.65 8.48 18.05 31150.91 BNP Parib 48.00 -4.23 61.00 43.14 3.07 8.48 65233.25 Fanuc 19125-1955.00 28575 17930 3.82 19.33 33456.32 SvnskaHn 105.50 -7.40 426.00 101.50 3.85 14.13 23205.8 BB & T 34.36 -3.45 41.90 34.24 2.85 13.26 26805.96 McGraw Hill 88.51 -10.07 109.13 84.64 1.40-251.21 23924.25
Westpc 31.00 -2.56 40.07 29.10 8.18 13.26 72143.47 ChristianDior 145.60 -11.15 195.35 140.10 2.20 10.82 28855.31 FastRetail 38140-4500.00 61970 36180 0.84 38.48 34365.25 Swedbank 176.10 -11.00 223.90 175.00 6.28 12.82 23425.76 BectonDick 142.36 -11.73 157.50 128.87 1.62 44.28 30203.92 McKesson 182.39 -14.84 243.61 160.10 0.53 21.37 41969.6
Woolworths 22.87 -1.63 34.71 22.42 7.56 13.19 20278.17 Cred Agr 10.02 -0.87 14.49 9.82 3.43 21.78 28826.31 Fuji Hvy Ind 4415 -612.00 5223 3669 2.33 10.68 29359.54 TeliaSonera 40.06 -2.13 55.85 38.19 7.29 12.28 20384.18 BerkshHat 193900-3900.00 227500 190007 - 14.58 157277.91 Medtronic♦ 73.78 -3.14 79.50 55.54 1.75 44.86 103746.17
Belgium (€) Danone 59.73 -2.55 67.74 51.73 2.37 41.75 42662.51 Hitachi 633.10 -58.40 922.90 585.70 1.79 13.15 25993.35 Volvo 74.95 -4.15 120.50 71.30 3.90 16.44 14294.19 Biogen 280.59 -25.76 480.18 254.00 - 19.10 62544.38 Merck 51.08 -1.74 63.62 45.69 3.38 14.11 142694.18
AnBshInBv 107.55 -6.85 124.20 87.73 2.73 21.98 188628.25 EDF 12.43 -1.15 24.89 12.28 9.50 6.92 26028.46 HondaMtr 3502 -408.00 4499 3441 2.37 12.21 53885.09 Switzerland (SFr) BkNYMeln 37.15 -4.07 45.45 35.63 1.76 16.75 40603.19 Metlife 42.03 -6.18 58.23 41.96 3.31 8.48 46721.66
KBC Grp 54.06 -3.61 66.00 43.99 3.63 9.08 24648.34 Engie SA 15.05 -1.28 20.08 13.80 6.28 42.77 39969.72 JapanTob 4193 -278.00 4848 3101 2.30 19.31 71233.8 ABB 16.43 -1.53 22.16 16.43 - 15.94 38212.73 BlackRock 307.78 -32.74 382.84 275.00 2.64 16.48 50473.62 Microsoft 52.33 -3.15 56.85 39.72 2.27 36.35 418007.5
Esslr Intl 110.95 -4.10 125.15 90.74 0.87 41.02 26185.77 KDDI 3005 -149.00 8550 2519 1.88 16.67 68686.58 CredSuisse 19.72 -1.97 28.94 18.57 3.41 9.47 38783.75 Boeing 129.99 -14.60 158.83 115.14 2.55 17.02 87091.17 Mnstr Bvrg 144.25 -4.71 160.50 111.92 - 52.10 29242.71
Brazil (R$)
Hermes Intl 301.45 -10.30 365.55 277.55 0.92 36.09 34705.5 Keyence 59140-7940.00 70100 50700 0.33 30.81 30544.28 Nestle 70.30 -4.25 77.00 64.55 3.08 15.82 225214.29 BrisMySq♦ 63.63 -5.16 70.87 51.82 2.23 62.63 106153.06 MondelezInt♦ 40.99 -3.85 48.58 33.97 1.45 8.34 65139.98
Ambev 17.07 -0.78 20.46 16.26 9.42 21.67 66356.63
LOreal 149.60 -5.70 181.30 136.00 1.70 30.19 91315.24 MitsbCp 1940.5 -87.50 2837 1887.5 2.67 11.06 26209.76 Novartis 82.10 -4.70 103.20 82.10 3.17 24.60 220830.08 Broadcom 54.17 -3.65 58.51 40.21 0.96 24.53 30389.37 Monsanto♦ 92.79 -5.73 126.00 81.22 2.09 25.31 40852.38
Bradesco♦ 19.30 -1.20 32.40 18.98 4.93 6.89 12049.63
LVMH 135.35 -9.55 176.60 126.35 2.23 12.65 75009.61 MitsubEst 2346.5 -177.00 2975 2321 0.60 45.30 27713.46 Richemont 66.05 -6.05 91.75 64.70 2.36 21.80 34642.65 CapOne 64.23 -7.95 92.10 64.07 2.09 9.41 34173.27 MorganStly 28.38 -3.43 41.04 28.30 1.69 18.18 54950.04
Cielo 35.00 1.41 46.27 30.48 1.92 17.10 16331.64
Nmrcble-SFR 38.00 4.50 60.01 32.19 - -47.57 18161.25 MitsubishiEle 1162.5 -120.00 1718 1063 2.19 11.51 21202.99 Roche 263.00 -13.40 289.40 238.80 2.99 25.74 185655.85 CardinalHlth♦ 83.86 -5.41 91.91 74.76 1.67 21.88 27588.35 MylanNV 49.42 -4.65 76.69 37.59 - 28.74 24302.14
ItauHldFin 23.53 -1.05 32.66 22.94 2.13 5.38 17732.25
Orange 15.30 -0.19 16.98 12.21 3.70 42.63 44197.69 MitsuiFud 2901.5 -154.50 3879 2886 0.91 25.27 24435.07 Swiss Re 93.25 -4.90 99.75 74.95 4.63 38.05 34733.4 Carnival 52.05 -2.43 55.77 42.51 1.91 30.60 30715.25 Netflix 111.39 -2.99 133.27 45.26 - 310.05 47606.78
Petrobras 7.86 -0.71 16.26 7.65 - -3.02 14467.83
PernodRic 99.16 -6.04 117.75 88.00 1.56 32.40 28702.36 MitUFJFin 707.70 -49.40 936.80 604.00 2.40 6.82 85175.64 Swisscom 488.30 -14.70 580.50 471.10 4.40 18.31 25415.61 Caterpillar 63.29 -4.67 89.62 62.93 4.35 13.62 36849.58 NextEraE 105.17 1.28 112.64 93.74 2.77 15.72 48434.56
Vale 10.54 -2.49 27.89 10.54 22.62 -4.53 8386.5
Renault 83.77 -8.86 100.25 58.04 2.14 9.58 27015.77 Mizuho Fin 229.40 -14.10 280.40 191.00 3.19 7.54 48471.32 Syngent 366.90 -25.40 435.20 280.00 2.93 25.34 34264.51 CBS 46.46 -0.67 63.95 38.51 1.24 15.63 20149.83 Nike 58.87 -3.63 68.20 45.35 1.18 29.48 39721.7
Canada (C$) Murata Mfg 15570-2000.00 22220 12520 1.21 16.28 29792.77 Celgene 108.98 -10.78 140.72 92.98 - 56.91 86153.07 NorfolkS 77.79 -6.80 112.05 72.10 2.89 14.65 23225.74
Safran 59.61 -3.76 72.45 52.31 1.90 -19.16 27110.08 UBS 17.46 -2.06 22.57 13.58 4.20 11.04 67532.82
BCE♦ 54.21 0.75 60.20 51.56 4.80 17.57 33154.66 NipponTT 4778 -58.00 5066 3114 1.88 17.87 85084.5 CharlesSch 29.00 -3.93 35.72 25.43 0.79 30.44 38179.18 Northrop 186.07 -2.74 193.99 149.05 1.55 18.70 33936.01
Sanofi 74.67 -3.93 101.10 73.20 3.60 21.58 106319.06 Zurich Fin 241.40 -17.00 334.60 232.60 - 12.33 36480.64
BkMontrl 73.52 -4.56 80.76 64.01 4.49 10.99 33387.09 Nissan Mt 1141.5 -138.00 1350 963.10 3.10 9.29 43834.35 ChevrnTx 82.13 -7.83 112.93 69.58 5.00 18.58 154571.67 NXP 75.18 -9.07 114.00 72.05 - 27.05 18926.68
Sant Gbn 36.12 -3.73 44.84 32.36 1.62 25.65 22094.8 Taiwan (NT$)
BkNvaS♦ 54.56 -1.41 67.72 52.60 5.04 9.57 46391.24 Nomura 634.90 -44.20 909.20 609.30 3.42 9.46 20615.39 Cigna 138.74 -7.59 170.68 105.00 0.03 17.71 35743.3 Occid Pet♦ 63.17 -4.44 83.74 62.94 4.47 -8.32 48245.19
Schneider 49.66 -2.91 75.29 48.51 3.65 18.18 31819.23 Chunghwa Telecom 99.40 0.30 101.00 92.80 4.74 20.02 23153.81
Brookfield 40.20 -3.45 48.64 39.56 1.55 10.58 27871.65 Nppn Stl 2236 -180.00 3505 2122.5 2.74 9.74 18049.85 Cisco♦ 24.78 -2.38 30.31 23.03 3.12 14.11 126059.65 Oracle♦ 34.65 -1.88 45.33 34.61 1.59 17.25 145572.27
SocGen 38.91 -3.67 48.77 32.45 3.03 10.89 34205.65 HonHaiPrc 78.00 -2.80 99.70 77.00 4.50 8.38 36626.9
CanadPcR♦ 159.55 -17.18 245.05 158.07 0.89 17.54 17234.68 NTTDCMo 2430.5 -53.50 2873.5 1801 2.72 21.52 84353.09 Citigroup 46.13 -5.62 60.95 46.03 0.25 10.83 137420.83 Pepsico 97.21 -2.71 103.44 76.48 2.68 30.04 141620.46
Total 37.35 -3.92 50.30 36.92 6.53 104.21 99328.53 MediaTek 213.50 -36.50 505.00 202.00 10.00 10.77 10075.16
CanImp♦ 89.14 -2.05 102.90 83.10 4.91 9.86 25027.53 Panasonic 1156 -84.50 1853.5 1141 1.33 86.66 24087.73 CME Grp■ 86.23 -4.37 100.87 83.43 2.19 24.03 29165.85 Perrigo 140.69 -4.01 215.73 140.20 0.33 145.19 20597.31
UnibailR 223.10 -11.30 262.00 212.30 4.13 13.41 23999.63 TaiwanSem 134.00 -9.00 155.00 112.50 3.26 11.77 104335.04
CanNatRs 27.30 -2.92 42.46 25.01 3.40 68.51 21115.41 Seven & I 5141 -409.00 5998 4117.5 1.34 28.51 38710.54 Coca-Cola 41.51 -1.45 43.91 36.56 2.99 27.75 180526.37 Pfizer 31.00 -1.28 36.46 28.47 3.41 24.27 190887.77
Vinci 56.86 -2.28 62.60 45.27 2.94 17.18 36489.13
CanNatRy 72.62 -4.73 88.89 69.90 1.66 16.88 40475.67 ShnEtsuCh 6183 -434.00 8310 5801 1.60 20.28 22694.55 Thailand (THB) Cognizant 55.76 -4.26 69.80 52.60 - 22.80 33987.35 Phillips66 75.21 -6.59 94.12 57.33 2.71 9.15 40120.04
Vivendi 18.75 -1.11 24.83 18.55 10.48-221.59 27967.87
Enbridge 44.89 -1.11 66.14 40.17 3.94-114.28 27398.93 Softbank 5695 -444.00 7827 5370 0.66 12.85 58082.49 PTT Explor 215.00 -29.00 382.00 206.00 4.91 -67.24 16915.15 ColgtPlm 62.55 -4.07 71.56 50.84 2.27 24.11 56102.47 PhilMorris 86.71 -1.20 90.27 75.27 4.45 19.42 134339.43
GtWesLif 33.17 -1.36 37.70 30.42 3.93 11.95 23287.16 Germany (€)
Sony 2824.5 -177.50 3970 2351.5 0.75 36.06 30285.57 United Arab Emirates (Dhs) Comcast♦ 54.67 -1.77 64.99 50.01 1.71 17.86 114496.35 PNCFin 87.96 -7.35 100.52 81.84 2.16 12.34 45556.27
ImpOil 42.38 -2.70 55.37 39.30 1.14 21.04 25386.04 Allianz 151.80 -11.75 170.15 131.05 4.43 10.94 75654.17
SumitomoF 4309 -297.00 5770 3902 3.39 11.95 51757.62 Emirtestele 16.05 -0.05 16.50 9.86 3.86 18.07 34547.22 ConocPhil 43.29 -3.40 70.11 41.10 6.50 -55.04 53447.65 PPG Inds 94.49 -4.33 118.95 82.93 1.41 23.02 25443.25
Manulife 19.01 -1.73 24.20 18.82 3.46 14.85 26489.58 BASF 63.68 -7.04 97.22 63.00 4.32 11.75 63784.77
Takeda Ph 5787 -278.00 6657 5042 2.93 -31.51 38843.4 United Kingdom (p) Corning 17.15 -1.13 25.16 15.42 2.57 11.68 20288.18 Praxair 97.85 -4.55 130.38 97.33 2.74 20.78 27872.13
Potash 22.79 -0.91 47.10 22.29 8.70 9.52 13449.31 Bayer 103.90 -11.90 146.45 103.85 2.13 23.49 93699.77
TokioMarine 4335 -377.00 5504 3703 2.34 18.31 27894.4 AscBrFd 3033 -309.00 3606 2705.75 1.12 42.50 34909.03 Costco 152.11 -9.39 169.73 117.03 0.99 29.52 66894.52 Prec Cast 232.07 0.06 232.96 186.17 0.05 25.40 31928.46
RylBkC 70.07 -4.08 81.53 68.05 4.48 10.25 73538.43 BMW 83.44 -14.19 123.75 72.05 3.41 9.91 54778.76
Toyota 6864 -624.00 8783 6650 3.09 9.97 194623.18 AstraZen 4349 -267.50 4931.68 3746 4.27 49.13 79912.63 CrownCstl 83.08 -3.37 89.44 75.78 3.79 56.46 27729.72 Priceline 1136.96 -137.99 1476.52 990.69 - 24.75 56602.28
Suncor En 33.25 -2.47 40.93 32.13 2.56 495.03 33967.64 Continental 202.80 -21.75 234.25 169.45 1.57 15.51 44233.96
Mexico (Mex$) Aviva 476.90 -39.10 578.68 428.40 3.80 12.48 28069.55 CSX 23.48 -2.47 37.67 23.44 2.78 12.16 22891.7 ProctGmbl 75.97 -3.44 91.79 65.02 3.30 26.45 206681.91
ThmReut 50.30 -2.11 55.92 45.59 3.60 14.71 27298.71 Daimler 68.19 -9.39 96.07 62.06 3.53 9.62 79557.91
AmerMvl 10.92 -1.20 17.37 10.87 2.32 19.65 25607.37 Barclays 200.15 -18.75 289.90 200.15 3.25 0.67 48888.49 CVS 93.56 -4.21 113.65 81.37 1.36 21.91 103600.59 Prudntl 73.05 -8.36 92.60 72.86 3.05 9.93 32799.45
TntoDom 51.05 -3.19 56.48 47.75 3.99 11.90 66967.2 Deut Bank 20.47 -2.06 33.42 20.47 3.60 -6.83 30782.71
FEMSA UBD 152.61 -9.02 169.74 123.10 0.73 29.31 30475.72 BG 940.00 -45.00 1301.62 785.20 2.03 -18.15 46709.69 Danaher♦ 88.50 -4.38 97.62 81.25 0.55 25.62 60647.75 PublStor 247.23 -0.47 253.93 182.08 2.41 43.19 42745.05
TrnCan♦ 43.47 -1.72 59.50 40.58 4.75 18.20 21781.19 Deut Tlkm 15.76 -0.94 17.63 13.16 3.12 33.09 79149.6
WalMrtMex 41.03 -2.46 47.00 28.32 1.34 30.96 39985.35 BP 328.70 -25.30 499.25 252.55 8.19 -12.01 87773.21 Deere♦ 73.76 -2.51 98.23 71.85 3.06 13.58 23359.8 Qualcomm 45.88 -4.11 75.30 45.84 3.77 14.84 68954.44
ValeantPh 128.87 -11.69 347.84 92.65 - 54.24 31073.7 DeutsPost 24.06 -1.90 31.19 22.93 - 20.48 31779.66
BrAmTob 3631 -140.00 3931.5 3231.5 4.08 16.86 98410.63 Delphi 73.58 -12.15 90.57 66.10 1.30 16.15 20608.89 Raytheon♦ 121.79 -2.74 129.99 95.32 2.06 18.74 36670.73
E.ON 8.05 -0.88 14.85 7.08 1.71 -1.77 17564.42 Netherlands (€)
China (HK$) BSkyB 1088 -24.00 1180 873.00 2.97 13.91 27191.17 Delta 46.61 -4.08 52.77 34.61 0.83 13.99 36657.54 Regen Pharm 491.68 -51.19 605.93 393.00 - 101.26 50225.73
Fresenius Med 77.50 -0.23 83.17 60.88 0.97 25.59 26293.75 Altice 14.23 0.98 47.73 9.98 - 259.27 12743.95
AgricBkCh 2.97 -0.20 4.55 2.84 7.29 4.60 11759.44 BT♦ 465.65 -6.05 502.60 390.50 2.45 17.55 56638.35 DiscFinServ 49.97 -3.65 64.70 49.88 2.00 10.74 21361.37 ReynoldsAm 47.12 0.97 49.56 32.45 2.78 18.50 67339.26
Fresenius SE 60.87 -5.10 70.00 42.81 0.71 27.00 36174.1 ASML Hld 73.74 -8.81 104.85 70.25 0.93 23.28 34847.31
Bk China 3.22 -0.24 5.68 3.20 7.02 4.90 34683.18 Compass 1122 -53.00 1223.36 963.00 2.45 21.49 26829.79 Disney♦ 99.25 -5.83 122.08 90.00 1.75 21.08 164077.91 Salesforce 73.23 -5.17 82.90 54.95 - -579.96 48624.72
HenkelKgaA 82.47 -6.15 99.44 75.76 1.54 20.56 23365.39 Heineken 75.17 -3.60 85.90 57.16 1.38 22.59 47218.68
BkofComm 5.05 -0.41 8.61 4.93 6.36 4.79 22774.52 Diageo 1810 -46.50 2055 1592.5 2.96 19.13 66191.39 DominRes 69.52 1.88 79.89 64.54 3.51 23.99 41387.59 Schlmbrg 65.08 -4.67 95.13 64.89 2.80 25.62 82072.63
Linde 125.00 -8.90 195.55 120.20 2.48 20.73 25318.87 ING 11.53 -0.93 16.00 10.20 - 25.91 48637.2
BOE Tech 1.94 -0.22 4.78 1.17 1.91 28.36 49.72 GlaxoSmh♦ 1371.5 -1.50 1645 1227.5 5.83 6.79 97045.49 DowChem♦ 46.28 -5.20 57.10 35.11 3.48 13.00 53596.96 Shrwin-Will 241.77 -17.83 294.35 218.27 1.02 24.13 22508.91
MuenchRkv 172.85 -11.70 206.50 156.00 4.40 9.48 31450.3 Unilever 37.32 -2.79 42.84 32.35 2.93 23.33 69788.15
Ch Coms Cons 6.96 -0.96 17.00 6.59 2.89 6.92 3969.25 Glencore 77.48 -13.00 318.46 66.67 14.77-180.19 16214.81 DukeEner 71.04 -0.35 89.97 65.50 4.34 21.50 48899.27 SimonProp 186.10 -8.34 208.14 170.99 2.97 36.26 57582.7
SAP 71.05 -2.33 75.75 53.63 1.52 28.02 95188.75 Norway (Kr)
Ch Evrbrght 3.52 -0.25 5.65 3.22 6.29 4.77 3114.28 HSBC 499.10 -37.10 674.57 478.35 6.72 9.84 142815.77 DuPont 61.17 -5.43 76.61 47.11 2.84 18.30 53609.82 SouthCpr 24.07 -2.05 33.31 23.41 1.67 19.68 18904
Siemens 83.51 -6.37 106.35 77.91 3.73 12.78 80234.15 DNB 101.60 -8.20 143.00 98.55 3.91 7.15 18592.77
Ch Rail Cons 8.90 -0.71 17.70 8.10 2.01 7.99 2380.24 ImpTob 3508.5 -78.00 3665 2785 3.77 19.83 48902.15 Eaton 49.17 -2.87 73.82 49.06 4.18 11.86 22755.88 Starbucks 56.63 -3.40 64.00 39.50 1.08 32.38 84084.22
Volkswgn 125.05 -17.25 254.50 95.00 3.77 10.11 40242.3 Statoil 109.90 -13.80 161.70 109.60 6.56 -9.38 39371.98
Ch Rail Gp 5.30 -0.59 12.30 5.02 1.75 9.15 2872.3 LlydsBkg 68.87 -4.20 89.35 68.57 2.18 41.07 71544.69 eBay 25.75 -1.73 29.83 22.11 - 10.84 30916.84 StateSt♦ 58.65 -7.71 81.26 58.53 2.09 14.30 23664.46
ChConstBk 5.02 -0.29 7.98 4.98 7.14 4.66 155458.65 Hong Kong (HK$) Telenor 147.10 -1.20 186.10 138.70 2.59 35.91 24814.7 Ecolab♦ 104.35 -10.03 122.48 99.51 1.21 29.14 30814.92 Stryker♦ 87.89 -5.05 105.34 87.68 1.51 29.73 33004.65
Natl Grid♦ 940.10 2.60 968.57 806.40 4.56 16.38 51168.22
China Vanke RMB 24.43 4.53 24.43 10.93 2.05 16.75 36586.73 AIA 43.75 -2.85 58.20 38.85 0.95 21.13 67896.54 Qatar (QR) EMC♦ 24.47 -1.21 29.81 22.66 1.80 21.37 47443.35 Sychrony Fin 28.84 -1.57 36.40 27.92 - 11.42 24047.54
Prudential 1376 -155.00 1761.5 1045.99 2.68 14.01 51445.33
ChinaCitic 4.68 -0.34 7.40 4.36 - 4.54 8971.27 BOC Hold 22.60 -1.10 33.70 22.00 4.59 9.97 30778 QatarNtBk 165.90 -9.10 212.80 158.20 4.35 10.81 31880.13 Emerson 44.10 -3.73 62.75 42.21 4.09 11.47 28865.97 Target 71.38 -1.23 85.81 68.15 2.80 16.97 43973.76
RBS 283.50 -18.50 414.00 281.40 - -12.71 47912.5
ChinaLife 22.55 -2.50 41.00 22.10 2.08 14.05 21613.79 Ch OSLnd&Inv 23.75 -3.45 34.05 20.70 2.14 7.07 30165.39 EOG Res 65.52 -5.27 101.36 64.77 0.98 -9.81 36018.54 TE Connect 58.15 -6.46 73.73 54.32 2.05 20.13 22463.69
Russia (RUB) ReckittB 5993 -288.00 6450 5183.75 2.32 25.46 61685.98
ChinaMBank 16.02 -2.28 26.85 15.76 4.98 5.89 9473.32 ChngKng 48.25 -2.15 77.55 45.60 - 10.98 23987.83 EquityResTP 78.82 -2.77 82.53 61.90 2.63 35.61 28711.12 Telsa Mtrs 211.00 -29.01 286.65 181.40 - -41.24 27630.73
Gzprm neft 135.94 -0.15 166.94 130.36 6.59 6.54 43107.34 RELX 1169 -28.00 1232 988.50 2.22 26.85 34888.9
ChinaMob 82.05 -5.45 118.00 80.25 3.28 13.33 216399.03 Citic Ltd 12.52 -1.20 16.40 11.64 1.59 6.38 46912.99 Exelon 27.82 0.05 38.25 25.09 4.28 12.88 25582.28 TexasInstr 50.36 -4.45 59.99 43.49 2.59 18.57 51085.79
Lukoil 2378 32.10 3297.7 2126 8.03 19.18 27093.15 RioTinto 1739 -240.50 3280 1739 7.85 17.30 34760.16
ChinaPcIns 28.60 -3.30 47.10 24.80 2.02 14.44 10223.96 Citic Secs 15.90 -2.22 40.50 12.82 2.11 7.34 5976.88 ExpScripts 85.74 -1.67 94.61 68.06 - 27.73 57983.9 TheTrvelers 105.99 -6.87 116.48 95.21 2.10 9.81 32244.15
MmcNrlskNckl 8990 -160.00 12247 8734 16.40 10.15 19056.02 RollsRoyce 559.50 -15.50 1061 504.50 4.13 -41.15 14956.27
ChMinsheng 7.15 -0.53 11.88 6.70 3.08 4.76 6385.69 CK Hutchison 99.35 -5.25 174.90 97.50 3.40 4.23 49392.54 ExxonMb 74.69 -3.26 93.45 66.55 3.65 16.43 310929.88 ThrmoFshr♦ 134.16 -7.69 143.65 117.10 0.43 28.43 53542.95
Novatek 568.00 -23.00 646.30 410.80 11.32 47.17 23101.22 RylDShlA 1375 -151.00 2216.5 1374.5 9.14 83.11 79780.12
ChMrchSecs RMB 18.51 -3.19 40.00 13.85 2.25 10.68 13493.4 CNOOC 7.63 -0.44 13.78 7.41 6.89 7.13 43879.52 Facebook 97.33 -7.33 110.65 72.00 - 102.38 219940.16 TimeWrnr 71.17 6.50 91.34 62.94 1.84 17.03 58044.93
Rosneft 252.40 -0.85 294.20 201.05 3.57 6.20 35831.27 SABMill 4035 -34.50 4090 2773 1.84 33.43 95039.6
Chna Utd Coms RMB 5.46 -0.72 10.74 4.27 1.23 37.30 17565.2 HangSeng 138.00 -9.50 162.10 126.70 3.76 10.67 33983.94 Fedex 134.71 -14.28 185.19 130.01 0.65 35.59 37128.13 TimeWrnrC♦ 182.93 -2.66 194.22 134.21 1.97 28.45 51805.33
Sberbank 96.85 -4.41 110.70 57.20 0.51 9.51 28004.75 Shire 4277 -421.00 5870 4082 0.35 12.62 36836.15
ChShenEgy 11.52 -0.66 23.40 10.92 7.53 8.24 5043.05 HK Exc&Clr 186.50 -12.00 311.40 173.60 1.98 34.50 29032.26 FordMtr 12.54 -1.55 16.74 10.44 4.40 10.96 48878.14 TJX Cos 66.93 -3.98 76.93 63.53 1.08 21.67 44811.58
Surgutneftegas 34.01 0.03 39.80 25.10 - 1.17 16273.19 StandCh 505.50 -58.20 1166 475.55 10.14 11.82 23918.4
ChShpbldng RMB 8.57 -0.83 20.19 8.05 0.44-526.27 23357.6 MTR 36.65 -1.75 40.00 32.10 2.65 14.54 27655.58 Franklin♦ 33.65 -3.17 54.85 33.54 1.71 10.66 20240.12 T-MobileUS 39.88 0.76 43.43 28.26 - 68.79 32543.57
Saudi Arabia (SR) Tesco 146.90 -2.60 252.52 137.00 0.79 -2.11 17386.84
ChStConEng RMB 5.90 -0.44 12.52 4.88 2.90 7.60 26774.01 SandsCh 22.80 -3.75 40.55 22.30 8.08 13.41 23698.08 GenDyn 130.19 -7.17 153.76 129.87 2.44 15.28 41156.73 UnionPac 73.86 -4.34 124.52 72.42 2.79 13.29 63085.35
AlRajhiBnk 49.99 -2.10 69.00 46.60 3.60 13.16 21633.5 Vodafone♦ 223.05 2.05 258.00 201.25 5.03 -41.77 86110.84
ChUncHK 8.85 -0.60 16.00 8.52 2.69 19.42 27298.47 SHK Props 91.55 -2.05 137.60 91.00 2.43 9.00 34119.7 GenElectric♦ 28.45 -2.70 31.49 19.37 3.10 57.47 287607.85 UPS B 91.39 -4.84 114.40 91.21 3.00 21.86 63620.48
Natnlcombnk 45.88 -5.20 72.75 45.50 1.68 10.81 24371.19 WPP 1464 -99.00 1616 1273 2.61 15.13 27556.94
CNNC Intl RMB 8.44 -1.10 14.38 4.07 - 23.86 4984.22 Tencent 142.60 -9.90 171.00 121.60 0.24 41.10 172715.26 GenMills♦ 55.29 -2.37 59.87 47.43 3.02 23.65 32806.06 USBancorp♦ 39.70 -2.97 46.26 38.81 2.42 13.11 69442.33
SaudiBasic 67.71 -8.79 110.50 66.00 7.31 8.93 54095.88 United States of America ($)
CSR 8.29 -1.29 20.70 7.80 - 19.04 4667.51 India (Rs) GenMotors 29.53 -4.48 39.00 24.62 4.29 11.29 45953.9 UtdHlthcre 110.16 -7.48 126.21 95.00 1.52 18.21 104994.43
SaudiTelec 64.68 -3.75 73.25 52.75 5.96 13.74 34450.06 21stC Fox A 25.89 -1.27 36.16 22.81 1.11 7.02 30310.77
Daqin RMB 8.22 -0.40 15.15 7.88 5.81 8.70 18547.36 Bhartiartl 323.85 -16.65 452.45 304.15 0.67 23.02 19416.29 GileadSci 96.45 -4.74 123.37 86.00 0.86 9.23 139001.83 UtdTech 90.40 -5.67 124.45 85.50 2.66 14.79 80186.69
Singapore (S$) 3M 140.49 -10.15 170.50 134.00 2.68 18.94 86501.51
Gree Elec Apl 0.22 -0.01 0.45 0.13 - -2.53 384.05 HDFC Bk 1062.35 -26.40 1128 944.20 0.73 25.08 40233.62 GoldmSchs 163.94 -16.29 218.77 163.60 1.46 11.22 69926.34 ValeroEngy 68.26 -2.45 73.88 43.45 2.07 7.91 32867.42
DBS 15.72 -0.97 21.50 15.43 3.71 12.24 27284.8 AbbottLb 40.67 -4.24 51.74 39.00 2.22 25.18 60668.25
GuosenSec RMB 16.96 -2.79 34.94 13.76 1.17 10.33 5650.24 Hind Unilevr 809.85 -46.70 981.00 769.00 1.74 38.50 26283.37 Halliburton 32.46 -1.58 50.20 30.93 2.13 109.88 27779.7 Verizon♦ 44.83 -1.39 50.86 38.06 4.74 18.73 182407.58
JardnMt US$ 48.03 -0.70 67.88 45.00 2.79 12.09 33734.09 Abbvie 55.65 -3.59 71.60 45.45 3.33 33.54 90973.67
HaitongSecs 11.96 -1.74 27.90 10.00 2.49 7.62 5252.58 HsngDevFin 1174.4 -84.05 1402.3 1093.2 1.25 21.00 27808.01 HCA Hold 64.27 -3.36 95.49 43.91 - 14.00 26200.8 VertexPharm 110.71 -15.12 143.45 97.45 - -42.04 27203.36
JardnStr US$ 26.20 -1.13 36.93 25.75 0.95 10.05 29161.88 Accenture 98.20 -6.30 109.86 83.47 2.09 22.60 79171.13
Hngzh HikVDT RMB 30.96 -3.43 56.48 25.55 1.29 22.14 14828.29 ICICI Bk 245.05 -17.95 393.40 243.05 1.98 11.71 21361.87 Hew-Pack 10.58 -1.26 18.66 10.55 5.98 4.53 18957.76 VF Cp 58.22 -4.03 77.83 58.07 2.11 25.28 24819.71
OCBC 8.40 -0.40 10.92 8.30 4.17 9.59 23984.12 Ace♦ 109.96 -6.89 119.86 96.00 2.30 14.00 35646.99
Hunng Pwr 6.74 0.05 11.90 6.24 6.68 6.58 4080.73 Infosys 1063.3 -41.95 2336 932.65 3.39 19.73 36450.62 HiltonWwde 19.15 -2.25 31.60 19.13 0.35 26.36 18909.7 Viacom 40.98 -0.18 74.17 36.32 3.42 9.03 14226.89
SingTel♦ 3.55 -0.12 4.57 3.40 4.80 15.02 39275.41 Adobe 87.85 -6.09 96.42 68.98 - 95.26 43819.52
IM Baotou Stl RMB 3.55 -0.06 7.50 3.12 - -45.64 8481.65 ITC 313.65 -13.85 409.95 294.00 2.00 25.05 37806.6 HomeDep 123.90 -8.35 135.47 92.17 1.70 24.67 157090.49 Visa Inc 72.88 -4.67 81.01 60.00 0.63 29.48 141856.72
UOB 18.41 -1.20 25.05 18.20 4.49 9.58 20533.05 AEP 58.26 -0.01 65.38 52.29 3.49 16.84 28595.02
In&CmBkCh 4.35 -0.33 7.10 4.25 7.00 4.81 48631.57 L&T 1179.1 -110.10 1893.8 1175 1.26 22.02 16468.18 Honywell 98.43 -5.14 107.41 87.00 2.02 17.97 75859.16 Walgreen 81.05 -4.11 97.30 73.00 1.66 20.41 87992.43
Aetna 107.07 -1.05 134.40 88.70 0.87 17.11 37335.31
IndstrlBk RMB 16.44 -0.63 21.42 11.90 3.45 6.31 47538.25 OilNatGas 230.15 -12.35 373.80 211.25 4.19 10.29 29532.53 South Africa (R) HumanaInc♦ 172.91 -5.60 219.79 143.44 0.63 20.73 25629.4 WalMartSto 63.54 2.24 90.97 56.30 2.89 14.47 203448.3
Aflac 56.71 -3.19 66.53 51.41 2.64 10.34 24200.35
Kweichow RMB 204.63 -13.56 290.00 166.20 2.13 16.07 39014.06 RelianceIn 1025.75 10.40 1067.85 796.45 0.95 12.61 49834.03 Firstrand 38.85 -3.52 58.47 34.08 6.02 7.98 13480.67 IBM 131.63 -5.99 176.30 131.32 3.50 9.40 127695.6 WellsFargo 49.56 -4.80 58.77 47.75 2.81 12.49 254409.29
AirProd♦ 119.02 -11.09 158.20 118.83 2.58 21.09 25647.61
Midea 1.91 -0.11 2.68 1.65 4.85 12.98 52.90 SBI NewA 208.95 -18.85 336.00 208.60 1.63 8.86 24327.92 MTN Grp 124.89 -8.00 250.00 123.03 12.27 6.09 14257.3 IllinoisTool 84.02 -8.66 100.14 78.79 2.29 17.23 30540.58 Williams Cos 20.31 -5.39 61.38 19.47 11.25 47.25 15227.72
Alexion 168.13 -22.62 208.88 142.02 - 158.67 37883.78
New Ch Life Ins 29.65 -2.90 56.55 27.05 0.83 8.51 3949.41 SunPhrmInds 794.15 -21.40 1200.8 704.00 - 68.65 28665.04 Naspers N 1935 -185.00 2270 1521.98 0.27 54.19 52411.9 Illumina 165.17 -26.78 242.37 130.00 - 50.24 24180.89 Yahoo 30.63 -2.63 50.41 27.20 - 124.95 28925.6
Allegran 299.46 -13.04 340.34 237.50 - -42.34 118024.53
PetroChina 4.68 -0.40 11.04 4.55 4.00 16.95 12718.84 Tata Cons 2397.6 -18.80 2812.1 2315.25 1.61 23.20 70856.94 South Korea (KRW) Intcntl Exch 250.27 -5.99 266.74 202.24 0.82 24.66 27470.8 Yum!Brnds 68.14 -4.91 95.90 66.35 2.31 33.94 29384.8
Allstate 58.23 -3.86 72.87 54.12 1.94 10.57 22552.84
PingAnIns 38.00 -5.00 62.90 35.00 2.12 10.40 36453.66 Indonesia (Rp) HyundMobis 238500-8000.00 271500 185500 1.22 12.41 19379.39 Intel 31.51 -2.94 37.49 24.87 2.88 14.06 148695.69 Venezuela ()
Alphabet 730.91 -47.10 798.69 490.91 - 35.14 212934.39
PngAnBnk RMB 11.12 -0.87 17.50 9.30 1.56 7.11 19921.82 Bk Cent Asia 13000 -300.00 15600 11000 1.04 19.90 23021.37 KoreaElePwr 49900 -100.00 54000 38750 0.97 2.70 26739.57 Intuit♦ 93.14 -3.36 109.21 79.63 1.06 60.37 24589.36 Bco de Vnzla 100.00 -5.00 143.95 27.00 - - 27015.81
Altria♦ 58.24 0.03 61.74 47.31 3.50 22.83 114189.97
Pwr Cons Corp RMB 7.01 -1.02 20.00 6.31 1.42 13.86 3510.97 SK Hynix 29700-1050.00 51700 28550 0.98 4.83 17516.13 John&John 98.16 -4.56 106.50 81.79 2.84 19.62 271603.19 Bco Provncl 4200 50.00 4400 850.00 0.80 58.84 33546.33
Israel (ILS) Amazon 607.05 -68.84 696.44 285.25 - 912.57 284561.98
SaicMtr RMB 19.51 -1.71 29.18 14.00 6.63 7.50 32647.7 SmsungEl 1171000-89000.00 1510000 1033000 1.70 8.85 126398.26 JohnsonCn 35.35 -4.14 54.52 35.28 2.82 16.90 22903.56 Mrcntl Srvcs 5000 0.00 5900 1310 0.15 38.45 22000.5
TevaPha 253.80 251.21 275.90 214.70 1.96 32.55 65920.21 AmerAir 40.37 -1.98 56.20 34.10 0.95 6.04 25446.24
ShenwanHong 0.15 -0.01 0.41 0.15 - -2.39 48.57 Spain (€) JPMrgnCh♦ 58.92 -7.11 70.61 50.07 2.74 10.46 216892.17
Italy (€) AmerExpr♦ 63.63 -5.92 91.81 63.08 1.66 11.80 62627.57
ShgPdgBk RMB 17.49 -0.78 20.12 11.91 4.31 6.64 49515.64 Kimb-Clark 125.23 -2.07 130.05 103.04 2.67 78.56 45457.79 Closing prices and highs & lows are in traded currency (with variations for that
Enel 3.74 -0.15 4.50 3.36 3.68 63.49 38373.5 BBVA 6.27 -0.47 9.77 6.25 2.51 16.24 43561.46 AmerIntGrp 57.45 -4.52 64.93 48.68 1.09 17.36 71066.37
Sinopec Corp 4.37 -0.31 7.79 4.12 5.41 21.15 14361.26 KinderM 14.77 -0.15 44.71 14.13 12.09 28.68 32959.47 country indicated by stock), market capitalisation is in USD. Highs & lows are
ENI 12.70 -1.10 17.66 12.32 7.43 -16.96 50333.32 BcoSantdr 4.04 -0.52 7.17 4.04 12.06 7.91 63579.9 AmerTower♦ 94.23 -2.72 104.12 86.83 1.73 73.29 39913.02
Sinopec Oil RMB 7.02 -1.14 14.23 5.08 - -203.57 479.45 Kraft Heinz 71.18 -1.58 81.20 61.42 0.74 -48.63 86373.78 based on intraday trading over a rolling 52 week period.
Generali 15.86 -1.06 19.21 15.16 3.72 13.05 26927.82 CaixaBnk 2.95 -0.27 4.53 2.94 2.67 25.32 18723.78 Amgen 150.71 -11.63 181.81 130.09 1.90 18.76 113680.98
Denmark (kr) Iberdrola 6.42 -0.13 6.71 5.35 2.37 16.77 44394.08 Kroger 40.80 -1.03 42.75 27.32 0.88 21.34 39768.69 ♦ ex-dividend
IntSPaolo 2.90 -0.19 3.65 2.25 2.37 16.98 50122.76 Anadarko 40.56 -8.02 95.94 39.80 2.56 -3.68 20610.27
DanskeBk 181.80 -3.40 218.00 155.50 2.97 27.36 26806.3 Inditex 29.65 -2.05 35.38 23.24 1.29 34.16 100759.18 L Brands 93.23 -2.59 101.11 75.11 1.86 24.91 26983.97 ■ ex-capital redistribution
Luxottica 56.95 -3.45 67.80 45.81 1.24 35.21 30035.2 Anthem 132.13 -7.31 173.59 126.02 1.68 13.18 34483.76
MollerMrsk 8095 -880.00 16450 8060 3.53 7.55 12594.8 Repsol♦ 8.93 -1.19 18.75 8.93 10.52 26.63 13636.03 LasVegasSd 39.01 -4.83 61.59 36.53 6.03 14.62 31108.57 # price at time of suspension
Unicred 4.67 -0.46 6.61 4.43 2.52 14.89 30416.02 Aon Cp 87.02 -5.19 107.08 86.38 1.21 20.71 23836.24
NovoB 380.60 -19.30 415.00 260.70 1.29 30.31 114760.26 Telefonica 9.59 -0.64 14.31 9.57 4.10 16.43 50883.64 LibertyGbl 38.20 -4.16 58.66 38.12 - -25.68 9655.29
Apple 96.96 -8.30 134.54 92.00 1.96 10.96 537593.46
Lilly (E) 81.25 -3.01 92.85 68.31 2.35 38.30 90031.22

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
China Vanke 24.43 24.43 0.00 0.00 4.53 22.8 74.50 Williams Cos 20.31 20.61 -0.30 -1.46 -5.39 -21.0 -25.44 Jan 08 date Coupon S* M* F* price yield yield yield US Jan 08 date Coupon S* M* F* price yield yield yield US
Nmrcble-SFR 38.00 37.51 0.50 1.32 4.50 13.4 1.60 Anadarko 40.56 40.11 0.45 1.12 -8.02 -16.5 -21.73 High Yield US$ US$
TimeWrnr 71.17 70.20 0.97 1.38 6.50 10.1 3.41 Vale 10.91 10.91 0.00 0.00 -2.12 -16.3 -9.53 Navient Corporation 06/18 8.45 BB- Ba3 BB 103.62 6.92 0.00 0.54 5.97 Halliburton Company 02/27 6.75 A A2 A- 118.24 4.68 0.00 0.19 2.53
Altice 14.23 14.56 -0.33 -2.23 0.98 7.4 14.99 ChMrchSecs 18.51 18.09 0.42 2.32 -3.19 -14.7 -13.10 High Yield Euro Korea Electric Power Corporation 08/27 6.75 AA- Aa2 AA- 99.61 6.91 0.00 -0.09 4.77
WalMartSto 63.54 65.03 -1.49 -2.29 2.24 3.7 6.44 MediaTek 213.50 206.00 7.50 3.64 -36.50 -14.6 -22.36 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - SouthTrust Bank 12/27 6.57 A Aa3 A+ 119.79 4.46 0.00 0.00 2.31
DominRes 69.52 68.51 1.01 1.47 1.88 2.8 5.48 Glencore 77.48 78.71 -1.23 -1.56 -13.00 -14.4 -2.48 SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 111.73 4.77 0.00 -0.25 -
Cielo 34.40 34.40 0.00 0.00 0.81 2.4 -2.04 Delphi 73.58 75.04 -1.46 -1.95 -12.15 -14.2 -13.94 Emerging US$ FleetBoston Financial Corp. 01/28 6.88 BBB Baa3 A- 119.34 4.80 0.00 -0.03 -
ReynoldsAm 47.12 47.23 -0.11 -0.23 0.97 2.1 1.51 GuosenSec 16.96 16.59 0.37 2.23 -2.79 -14.1 -10.45 Mexico 09/16 11.40 BBB+ A3 BBB+ 106.80 1.49 0.03 0.01 0.44 E.I. du Pont de Nemours and Company 01/28 6.50 A- A3 A 117.73 4.62 0.00 0.41 -
T-MobileUS 39.88 40.51 -0.63 -1.56 0.76 1.9 8.11 SandsCh 22.80 23.60 -0.80 -3.39 -3.75 -14.1 -15.08 Brazil 01/18 8.00 BB+ Baa3 BB+ 102.77 6.50 0.11 0.85 5.54
Russia 07/18 11.00 BB+ Ba1 BBB- 117.83 3.59 0.00 0.33 2.64 Euro
Lukoil 2378.00 2380.00 -2.00 -0.08 32.10 1.4 -4.49 Sinopec Oil 7.02 6.72 0.30 4.46 -1.14 -14.0 -18.66 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 96.61 2.99 0.00 -0.12 0.84
NextEraE 105.17 104.70 0.47 0.45 1.28 1.2 5.87 Illumina 165.17 167.72 -2.55 -1.52 -26.78 -13.9 -9.12 Peru 03/19 7.13 BBB+ A3 BBB+ 114.11 2.55 0.00 0.04 1.60
Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84 BHP Billiton Fin Ltd 09/27 3.25 A+ A1 A+ 106.85 2.56 0.00 0.12 0.42
RelianceIn 1025.75 1013.25 12.50 1.23 10.40 1.0 7.74 CSR 8.29 8.27 0.02 0.24 -1.29 -13.5 -18.73 TeliaSonera 09/27 3.00 A- A3 A- 109.01 2.12 -0.02 0.02 -0.03
Vodafone 223.05 218.20 4.85 2.22 2.05 0.9 2.93 Volkswgn 123.55 123.55 0.00 0.00 -18.75 -13.2 -12.12 Brazil 01/21 7.88 BB+ Baa3 BB+ 94.27 6.21 0.02 0.08 4.62
Colombia 07/21 4.38 BBB Baa2 BBB 100.46 4.33 0.00 0.05 2.73 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 109.06 2.32 0.00 -0.04 -
BCE 53.88 53.88 0.00 0.00 0.42 0.8 -2.80 GenMotors 29.53 29.99 -0.46 -1.53 -4.48 -13.2 -16.77
Poland 03/22 5.00 A- A2 A- 110.88 3.08 0.00 0.06 1.48 Yen
Hunng Pwr 6.74 6.72 0.02 0.30 0.05 0.7 -2.46 Metlife 42.03 42.51 -0.48 -1.13 -6.18 -12.8 -13.87
Turkey 09/22 6.25 - Baa3 BBB- 107.51 4.98 0.00 0.15 3.38 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
Fresenius Med 78.05 78.05 0.00 0.00 0.32 0.4 -0.30 Pwr Cons Corp 7.01 6.85 0.16 2.34 -1.02 -12.7 -15.54
Nokia 6.62 6.62 0.00 0.00 0.03 0.4 -0.59 HaitongSecs 11.96 11.86 0.10 0.84 -1.74 -12.7 -9.26 Turkey 04/26 4.25 - Baa3 BBB- 92.19 5.31 0.00 -0.03 3.17 £ Sterling
Chunghwa Telecom 99.40 99.20 0.20 0.20 0.30 0.3 0.40 Ch OSLnd&Inv 23.75 24.00 -0.25 -1.04 -3.45 -12.7 -12.36 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 122.65 4.11 0.06 0.12 1.82
Natl Grid 940.10 949.80 -9.70 -1.02 2.60 0.3 3.31 BMW 85.44 85.44 0.00 0.00 -12.19 -12.5 -14.53 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- 104.67 3.47 0.06 0.29 1.18
Exelon 27.82 27.84 -0.02 -0.07 0.05 0.2 4.82 ChinaMBank 16.02 16.02 0.00 0.00 -2.28 -12.5 -10.80 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.54 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+ 109.76 2.94 0.00 -0.04 1.34 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- 115.51 3.86 0.00 -0.08 1.71
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
Jan 08 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Jan 08 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 27.01 2.02 24.99 53.29 10.88 Jan 08 Price £ Yield Day Week Month Year High Low £m
US Prime 3.50 16-12-2008 3.50 3.25 3.25 Markit IBoxx VXD 25.05 2.18 22.87 56.32 7.04 Tr 2pc '16 100.05 0.32 -23.81 -11.11 -23.81 -20.00 101.68 100.05 0.32
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 171.29 0.04 -1.15 -1.15 -0.86 -3.76 VXN 28.33 1.56 26.77 46.72 11.15 Tr 1.75pc '17 101.41 0.38 2.70 -17.39 -13.64 -24.00 102.68 101.35 0.29
Euro Repo 0.05 10-09-2014 0.05 0.05 0.25 Corporates( £) 298.83 0.26 1.24 1.24 -0.05 0.57 VDAX 27.81 0.31 27.50 29.94 - Tr 5pc '18 109.67 0.48 -7.69 -27.27 -18.64 -33.33 113.51 109.34 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 250.49 0.01 0.41 0.41 0.41 0.41 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 111.67 0.75 -5.06 -20.21 -10.71 -20.21 115.07 111.04 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 211.61 0.09 0.15 0.15 -0.18 -0.68 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 115.38 0.96 -4.00 -17.95 -9.43 -15.04 119.04 114.45 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 226.44 0.21 0.50 0.50 -0.03 1.84 Tr 1.5pc '21 101.24 1.24 -3.88 -15.07 -7.46 0.00 142.92 99.91 0.12
Gilts( £) 291.59 0.29 1.65 1.65 0.02 0.80 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 116.06 1.28 -3.03 -13.51 -6.57 -5.19 119.85 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 239.69 0.25 0.57 0.57 -1.44 -3.55 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 128.48 1.64 -2.38 -10.38 -5.20 0.61 134.70 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 298.75 0.25 1.30 1.30 0.09 0.63 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 124.89 1.90 -2.06 -9.09 -4.04 2.70 131.90 119.79 0.31
Jan 08 (Libor: Jan 07) night Day Week Month month month month year Overall ($) 226.35 0.09 0.59 0.59 0.59 0.59 Australia 10/18 3.25 103.33 2.01 0.06 0.00 -0.16 -0.19 Tr 4.25pc '32 127.59 2.23 -1.33 -6.69 -1.76 5.69 136.85 121.93 0.35
US$ Libor 0.36510 -0.001 -0.001 0.000 0.42350 0.61685 0.84480 1.14710 Overall( £) 291.03 0.28 1.54 1.54 0.04 0.75 04/26 4.25 113.00 2.79 0.06 0.00 -0.13 -0.01 Tr 4.25pc '36 129.21 2.41 -1.23 -5.86 -1.23 7.11 140.37 123.52 0.28
Euro Libor -0.28714 -0.001 -0.004 -0.002 -0.21357 -0.13857 -0.05143 0.04714 Overall(€) 221.64 0.17 0.43 0.43 -0.03 1.18 Austria 10/19 0.25 99.98 0.26 0.00 0.00 0.00 0.00 Tr 4.5pc '42 138.75 2.51 -0.79 -4.92 0.00 7.73 153.16 132.20 0.26
£ Libor 0.47750 0.000 -0.004 0.000 0.51038 0.58938 0.75025 1.04400 Treasuries ($) 218.39 0.14 0.73 0.73 0.73 0.73 10/25 1.20 103.39 0.84 0.00 0.00 0.04 0.00 Tr 3.75pc '52 131.68 2.44 -0.81 -4.69 0.83 3.39 145.21 121.95 0.22
Swiss Fr Libor -0.002 -0.79100 -0.75200 -0.68500 -0.60460 FTSE Belgium 06/18 0.75 101.91 -0.05 0.00 0.00 0.00 0.00 Tr 4pc '60 143.62 2.39 -0.83 -4.78 0.42 1.70 159.23 131.72 0.22
Yen Libor -0.001 0.04857 0.08286 0.11500 0.22357 Sterling Corporate (£) 111.15 0.43 - - -0.12 -3.75 06/25 0.80 99.42 0.86 -0.04 0.00 0.02 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor -0.004 -0.21800 -0.14200 -0.05000 0.05100 Euro Corporate (€) 105.55 0.07 - - -0.47 -4.20 Canada 11/17 0.25 99.71 0.41 -0.03 0.00 -0.08 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.50000 0.60000 0.79500 Euro Emerging Mkts (€) 800.87 -17.82 - - -10.23 -18.84 06/26 1.50 100.64 1.43 -0.02 0.00 -0.10 0.00
US$ CDs
Euro CDs
0.000
0.000
0.38000
-0.22500
0.57000
-0.16500
0.79000
-0.05500
Eurozone Govt Bond 113.81 0.27 - - -0.31 -1.03 Denmark 11/18 0.25 101.38 -0.23 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 1.75 108.53 0.84 -0.03 0.00 0.08 0.04
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 99.39 1.27 0.00 -0.09 0.04 0.00
Fixed Coupon Jan 08 chg % Return 1 month 1 year Yield
Jan 08 term notice month month month year Markit iTraxx 09/25 0.88 100.58 0.81 -0.03 0.00 0.00 0.00
1 Up to 5 Years 98.84 0.09 2376.20 0.25 1.30 0.84
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 343.42 6.52 28.78 41.54 389.82 280.05 France 05/19 1.00 103.96 -0.17 0.00 0.00 0.00 0.00
2 5 - 10 Years 180.81 0.27 3272.11 0.53 1.90 1.49
Sterling 0.40 0.55 0.40 0.55 0.45 0.55 0.55 0.65 0.72 0.87 1.01 1.16 Europe 5Y 82.98 1.37 5.85 9.69 95.40 68.39 11/20 0.25 101.07 0.03 -0.03 0.00 -0.01 0.00
3 10 - 15 Years 206.51 0.36 3846.29 0.47 1.50 2.00
Swiss Franc - - - - - - - - - - - - Japan 5Y 78.89 1.76 4.20 4.75 83.13 65.01 11/25 1.00 101.13 0.88 -0.04 0.00 0.01 0.00
4 5 - 15 Years 186.86 0.30 3410.57 0.51 1.75 1.69
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 79.25 0.94 2.57 8.30 99.56 65.28 05/45 3.25 129.40 1.93 -0.05 0.00 0.08 0.14
5 Over 15 Years 299.50 0.44 4348.18 -0.56 0.17 2.44
US Dollar 0.32 0.42 0.32 0.42 0.40 0.50 0.60 0.70 0.80 0.90 1.10 1.20 Germany 04/19 0.50 102.72 -0.33 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 173.34 0.29 3249.87 0.02 0.88 2.16
Japanese Yen -0.15 -0.05 -0.10 0.00 -0.20 0.00 -0.15 0.15 -0.15 0.15 -0.10 0.20 10/20 0.25 101.82 -0.13 0.00 0.00 0.00 0.00
Emerging Markets 5Y 371.05 9.52 12.95 13.72 376.07 299.17 08/25 1.00 104.51 0.52 -0.02 0.00 -0.03 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 512.40 16.88 41.26 35.83 522.53 416.39 08/46 2.50 127.87 1.38 -0.04 0.00 0.04 0.09
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Jan 08 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 96.02 3.42 7.67 8.22 96.32 75.52 Greece 07/17 3.38 92.04 9.23 0.24 0.00 0.67 -4.79
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 283.44 100.00 1 Up to 5 Years 309.08 0.08 0.11 -1.97 2361.38 0.11 -0.37
02/26 3.00 67.11 8.56 0.00 0.00 0.03 -1.70 2 Over 5 years 566.69 0.09 -1.39 -1.16 4184.89 -1.34 -0.43
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 110.31 -0.32 0.00 0.00 0.00 0.00 3 5-15 years 428.54 0.29 -0.07 -2.69 3262.44 0.11 -1.57
05/26 1.00 98.73 1.13 0.00 0.00 0.00 0.00 4 Over 15 years 697.20 0.00 -1.91 -0.35 5050.98 -1.91 0.24
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/18 0.30 100.64 0.07 -0.01 0.00 -0.10 0.00 5 All stocks 525.29 0.08 -1.17 -1.11 3928.67 -1.13 -0.26
11/20 0.65 100.52 0.54 -0.04 0.00 -0.06 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
12/25 2.00 104.45 1.52 -0.04 0.00 -0.02 0.00 Yield Indices Jan 08 Jan 07 Yr ago Jan 08 Jan 07 Yr ago
Crude Oil† Jan 32.93 -0.29 Corn♦ Mar 357.25 4.25 Jul 01 Jul 01 Prev return stock Market stocks
09/46 3.25 112.64 2.66 -0.02 0.00 0.06 0.00 5 Yrs 1.10 1.14 1.08 20 Yrs 2.45 2.48 2.25
Brent Crude Oil‡ 33.38 -0.34 Wheat♦ Mar 477.75 9.75 Can 4.25%' 21 127.12 -0.305 -0.326 -0.14 5.18 71040.19 7
Japan 12/17 0.10 100.30 -0.05 0.00 0.00 0.00 0.00 10 Yrs 1.81 1.85 1.69 45 Yrs 2.41 2.43 2.37
RBOB Gasoline† Jan 1.12 -0.03 Soybeans♦ Mar 864.25 0.00 Fr 2.25%' 20 113.56 -0.677 -0.731 -0.55 20.31 212144.69 14
01/21 0.05 100.05 0.04 -0.01 -0.01 -0.02 0.00 15 Yrs 2.25 2.28 2.06
Heating Oil† Jan 1.07 -0.01 Soybeans Meal♦ Mar 268.60 0.70 Swe 0.25%' 22 107.78 -0.781 -0.794 0.60 32.00 234743.77 7
12/25 0.30 100.68 0.23 -0.02 0.00 -0.08 0.00
Natural Gas† Jan 2.48 0.08 Cocoa (ICE Liffe)X Mar 2155.00 48.00 UK 2.5%' 16 357.04 -1.100 -1.104 0.57 6.58 484649.56 25
12/45 1.40 104.42 1.20 -0.02 0.00 -0.17 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Mar 2998.00 22.00 UK 2.5%' 24 336.64 -0.737 -0.725 1.24 6.82 484649.56 25
Netherlands 04/17 0.50 101.16 -0.42 0.00 0.00 0.00 0.00 Real yield Jan 08 Dur yrs Previous Yr ago Jan 08 Dur yrs Previous Yr ago
Uranium Jan 36.75 0.00 Coffee(Robusta)X Jan 1440.00 6.00 UK 2%' 35 228.21 -0.695 -0.699 1.46 9.08 484649.56 25
07/25 0.25 95.92 0.69 -0.04 0.00 0.00 0.00 Up to 5 yrs -0.83 2.33 -0.80 -1.05 -1.58 2.35 -1.56 -1.63
Carbon Emissions - - Coffee (Arabica)♥ Mar 119.00 0.65 US 0.625%' 21 101.30 0.387 0.412 0.54 35.84 1122556.43 36
Diesel Mar - - White SugarX 419.70 -9.10 New Zealand 03/19 5.00 107.13 2.64 0.03 0.00 -0.05 -0.90 Over 5 yrs -0.77 23.39 -0.76 -0.79 -0.79 23.47 -0.79 -0.82
US 3.625%' 28 131.77 0.886 0.412 0.64 16.78 1122556.43 36
Unleaded (95R) - - Sugar 11♥ 14.53 -0.18 04/27 4.50 110.12 3.41 0.03 0.00 -0.15 -0.29 5-15 yrs -0.71 9.58 -0.68 -0.92 -0.81 9.59 -0.79 -1.04
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/19 4.50 112.80 0.63 -0.01 0.00 -0.01 -0.20 Over 15 yrs -0.78 29.00 -0.78 -0.77 -0.79 29.04 -0.79 -0.79
Base Metals (♠ LME 3 Months) Cotton♥ Mar 61.45 0.11 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 1.75 103.61 1.33 -0.01 0.00 -0.13 0.00 All stocks -0.77 20.30 -0.76 -0.79 -0.81 20.44 -0.80 -0.83
Aluminium 1492.00 22.00 Orange Juice♥ Mar 135.00 -5.15 amount.
Aluminium Alloy 1620.00 15.00 Palm Oil♣ Jan 562.00 - Portugal 06/19 4.75 113.38 0.77 0.02 0.00 0.06 -0.68 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4494.00 6.50 Live Cattle♣ Feb 132.83 -0.70 BONDS: TEN YEAR GOVT SPREADS 10/25 2.88 102.34 2.60 0.00 0.00 0.16 0.00
Lead 1628.50 -16.50 Spain 04/18 0.25 100.32 0.11 -0.01 0.00 -0.07 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Jan 159.20 -4.63
Nickel 8500.00 100.00 Lean Hogs♣ Feb 59.93 0.90 Spread Spread Spread Spread 10/25 2.15 103.88 1.72 -0.04 0.00 0.11 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 13710.00 20.00 Bid vs vs Bid vs vs Sweden 01/18 0.88 99.33 1.22 0.00 -0.07 0.06 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1505.00 13.50 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 114.72 0.85 -0.01 0.00 0.01 -0.01 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Jan 07 Month Year Australia 2.79 2.27 0.64 Italy 1.52 1.00 -0.63 Switzerland 05/19 3.00 112.92 -0.81 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1101.85 -4.50 S&P GSCI Spt 295.57 -5.17 - Austria 0.84 0.32 -1.31 Japan 0.23 -0.29 -1.92 05/26 1.25 113.79 -0.07 0.00 0.00 0.00 0.00
Silver (US cents) 1404.00 1.00 DJ UBS Spot 76.73 -2.30 - Belgium 0.86 0.35 -1.28 Netherlands 0.69 0.18 -1.45 United Kingdom 07/18 1.25 101.37 0.70 -0.02 0.00 -0.06 -0.19 Data provided by Morningstar | www.morningstar.co.uk
Platinum 874.00 9.00 R/J CRB TR 169.10 -5.57 -25.05 Canada 1.43 0.92 -0.71 Norway 1.33 0.81 -0.82 01/21 1.50 101.20 1.25 -0.03 0.00 -0.06 0.00
Palladium 505.00 19.00 Rogers RICIX TR 1949.40 - - Denmark 0.84 0.33 -1.30 Portugal 2.60 2.08 0.45 09/25 2.00 102.00 1.77 -0.03 0.00 -0.04 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Finland 0.81 0.29 -1.34 Spain 1.72 1.20 -0.43 01/45 3.50 119.56 2.54 -0.01 0.00 0.04 0.16
Iron Ore (Platts) 41.50 -0.20 UBS Bberg CMCI TR 11.60 -5.70 -26.79 France 0.88 0.36 -1.27 Switzerland -0.07 -0.59 -2.22 United States 12/17 1.00 100.09 0.95 -0.01 0.00 0.00 0.00
Iron Ore (The Steel Index) 41.50 -0.20 LEBA EUA Carbon 8.02 -5.87 18.64 Germany 0.52 0.00 -1.63 United Kingdom 1.77 1.26 -0.37 12/20 1.75 100.73 1.60 -0.01 0.00 0.00 0.00
GlobalCOAL RB Index 50.25 -2.00 LEBA CER Carbon 0.45 -23.73 -4.26 Greece 8.56 8.04 6.42 United States 2.15 1.63 0.00 11/25 2.25 100.92 2.15 -0.01 0.00 0.02 0.00
Baltic Dry Index 429.00 -16.00 LEBA UK Power 1085.00 -13.20 -69.25 Ireland 1.13 0.61 -1.01 11/45 3.00 101.37 2.93 0.00 0.00 0.06 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 11 January 2016

Corporate diary January 11 - January 15 ECONOMIC OUTLOOK

TODAY 11
Alcoa starts the US corporate reporting
season as usual today, and its earnings
are expected to show the impact of the
decline in the price of aluminium, which
like other metals has fallen sharply over
the past few years.
Underlying earnings per share for 2015
are expected to be 38 per cent lower than
for 2014 at 56.5 cents, according to the
average of analysts’ forecasts compiled
by Bloomberg.
Alcoa plans to separate into two
companies: a “downstream” specialised
metals and products business, serving
buoyant industries such as aerospace and
automotive, and an “upstream”
commodity business producing
aluminium and alumina, the intermediate
material used to make the metal.
It is also taking steps to cut costs in the
commodity business, last week
announcing the permanent closure of an
aluminium smelter in Indiana. Its target
for 2016 is to be in the lowest 38 per cent
of world producers for aluminium
production costs, and the lowest 21 per
cent for alumina.
Analysts at Deutsche Bank expect
earnings before interest, tax, depreciation
and amortisation to be lower in the fourth
quarter of last year than in the third
quarter, because “downstream margin
improvements are not likely enough to
offset the commodity price headwinds of
the upstream business”. Ed Crooks
EARNINGS
Alcoa Q4 $0.035 ($0.33)
WEDNESDAY 13
Associated British Foods sells more
clothes than food these days thanks to
Primark, which has become the UK’s
largest retailer by volume but which also
has stores in Europe and entered the US
in September.
Investors will want to know how
Primark has fared in what has been the
warmest winter on record in the UK and
mild in Europe. This has caused havoc on
Diary commentary from FT reporters. Data, unless
otherwise stated, from Thomson Reuters. Company
announcements, collated by Thomson Streetevents,
are of information publically available before last
week. Results forecasts, from Thomson I/B/E/S, are
for fully diluted, post-tax EPS in local currency for
the stated fiscal period. The comparable period of
the previous year is bracketed. Non-UK reporting
periods are broken by quarter: Q1, Q2, Q3, Q4. UK
periods are designated: Q1, H1 (first half), Q3 and
FY (full year).
Interest rate ‘lift-off’ offers small consolation for banks
Within hours of the decision by the US
Federal Reserve to raise interest rates
for the first time in nine years last
month, JPMorgan Chase announced
that it would respond by lifting its own
lending benchmark by the full amount.
Other banks quickly fell in line behind
the biggest US bank by assets, implying
that they, too, would benefit from
thicker spreads between the price of
their loans and cost of their deposits
(which remains largely unchanged).
But fourth-quarter results from the
banks, beginning with JPMorgan on
Thursday, are likely to show that “lift-
off” was a rare piece of good news
during the period.
The October-December quarter is
typically sluggish and this was no
exception, thanks to flattish investment
banking revenues and continued
pressure on trading. Fixed-income
trading businesses, in particular, will be
the high street as was clear in weaker
than expected updates last week from
Marks and Spencer and Next, though
employee-owned John Lewis bucked the
trend with record sales.
Elsewhere in the Weston-family
controlled ABF, investors will want
reassurance that sugar sales have finally
stabilised after the turmoil of recent years
and that groceries — including Kingsmill
bread, Twinings tea and Ovaltine drinks
— have continued the resilient trading
demonstrated at the half-year.
Scheherazade Daneshkhu
THURSDAY 14
Tesco will count the cost of keeping up
Lidl during the past few months, led by Bank of England expected to hold rates
an aggressive advertising campaign”
would all contribute to falling sales. The coming week’s main announcement further into negative territory and
The supermarket, led by former is the interest rate decision by the Bank extended the quantitative easing
Unilever director Dave Lewis, has been on of England on Thursday. There was programme at the meeting. ECB head
a mission to restore itself to health speculation towards the end of last year Mario Draghi also suggested that
following a traumatic year in which it was that other members of the rate setting further tweaks to the QE programme
investigated by the Serious Fraud Office committee would join Ian McCafferty in would be made in the future if
over its accounting policies under calling for an immediate rate rise. This necessary, details of which may become
previous boss Phil Clarke, who departed did not materialise at the December clearer with the minutes.
last summer. Peter Campbell meeting and a deterioration in economic On Wednesday we get December
conditions since then makes any shift trade data for China — a deterioration
Burberry’s Christmas campaign featured towards tighter policy even less likely. in the overall economic situation is
British celebrities, including Naomi Ranko Berich of Monex Europe said: expected to hit trade further. Exports in
Campbell and Julie Walters. “The problems caused by the latest bout November were down almost 7 per cent
But when the upmarket clothing brand of market turmoil and falling commodity compared with November 2014.
reports on festive trading, investors will prices have been exacerbated by the Analysts expect exports in December to
Eric Thayer/Reuters
be watching whether the hype made up latest sector surveys in the UK, which have contracted by 11 per cent as
for warm weather in the UK and falling suggest that the recent slowdown in conditions worsen. Weak commodity
demand in China. wage growth is unlikely to reverse. prices are expected to still weigh heavily
Cashmere scarves account for about 10 There was hardly an appetite for raising on imports, which fell 9 per cent year-
under the microscope, particularly at per cent of Burberry’s revenue, according rates in the last meeting, but now sitting on-year in November and analysts
Morgan Stanley, which announced a to analysts at Société Générale. tight is simply the only option left for expect imports to have fallen 11 per cent
slew of job cuts before Christmas in an A prolonged slowdown in China is also the bank.” year-on-year in December.
attempt to get closer to its medium- likely to have undermined business in the Also on Thursday we get further US retail sales for December become
term target of a 10 per cent return on region, which accounts for about 25 per details on the ECB’s views on the available on Friday. Weak car sales
equity. Goldman Sachs, too, will be keen cent of sales. In October, Burberry issued outlook for growth and inflation with the weighed on the headline rate going into
to turn around debt-trading revenues a sales warning after stock market release of minutes from the December the third quarter of last year, a trend
after two lacklustre quarters. turmoil in China over the summer and a meeting. The ECB cut its deposit rate that is expected to continue into the
On the lending side, loan growth crackdown on corruption hit demand for December data. Analysts expect the
remains solid but analysts will be luxury British fashion. headline rate to grow 0.1 per cent
watching for reserve building, as banks However, in November the company
Chinese trade month-on-month compared with growth
begin to boost defences against posted a pre-tax profit rise of 9 per cent. Sum over previous 12 months ($tn) of 0.2 per cent in November. Excluding
downturns in previously hot sectors Aliya Ram 2.5 car sales growth it is expected to be 0.2
such as commercial real estate. Exports per cent month-on-month compared
In energy, non-performing loans Intel put on a great show last week at the 2.0 with 0.4 per cent in November.
barely rose during the third quarter, CES conference in Las Vegas, with graffiti 1.5 US industrial production figures are
suggesting implausibly good outcomes artists painting in virtual reality, mountain also out on Friday. Contraction in
Imports 1.0
for hundreds of companies trying to get bikers doing flips, and a short video from industrial production occurred
to grips with low oil prices. Many Lady Gaga in its keynote address. frequently during 2015 and the
0.5
analysts expect plenty of talk of bad However, there will be less showbiz in 2008 10 12 14 15 December data are not expected to
and doubtful loans ahead, including at the quarterly results. Analysts expect deviate from this. Industrial production
Citigroup and Wells Fargo, which report fourth-quarter sales to be basically flat Source: Thomson Reuters Datastream is expected to be down a further 0.2 per
on Friday. Ben McLannahan compared with last year, while earnings cent from November. Andrew Whiffin
per share could drop slightly to 63 cents,
according to S&P Capital IQ. 4CAST ECONOMIC CALENDAR
The challenge is that its core business COUNTRY For Indicator Units* Mkt* Prev* COUNTRY For Indicator Units* Mkt* Prev*
when it reveals its Christmas trading of making chips for PCs, which accounts MONDAY THURSDAY
Canada Dec Housing starts 5 n/a 211.9 India Dec WPI 2 n/a -1.99
figures. Britain’s largest grocer will update for 60 per cent of sales and a third of Japan Nov Current account 3 895 1,458 UK BoE base rate % 0.5 0.5
the market on its festive trading and its profits, is no longer the growth engine it UK Dec RICS house prices % n/a 49
third-quarter performance. was. TUESDAY US Week Initial claims 5 n/a 277
India Dec CPI 2 n/a 5.41
The supermarket last year pledged to The company has said that growth in UK Dec BRC retail sales 2 n/a -0.4 FRIDAY
cut some prices in a bid to prevent cost- the PC business could be flat or in the low UK Nov Ind. prod. 1 0.1 0.1 UK Nov Constr. output 1 0.5 0.2
UK Nov Ind. prod. 2 1.8 1.7 UK Nov Constr. output 2 -0.1 1
savvy customers deserting its stores in single-digits this year, while most growth UK Nov Manuf. production 1 0.1 -0.4 US Jan Empire state survey -4 -4.59
favour of Aldi and Lidl. But the policy is will come from other segments such as UK Nov Manuf. production 2 -0.8 -0.1 US Dec Ind. prod. 1 -0.2 -0.6
likely to push its sales over Christmas into data centres and the Internet of things. US Dec PPI 1 -0.2 0.3
WEDNESDAY US Dec PPI (core) 1 0.1 0.3
negative territory, analyst Bruno Leslie Hook China Dec Exports 2 -8 -6.8 US Dec Retail sales 1 0.1 0.2
Monteyne at Bernstein predicts. China Dec Imports 2 -11 -8.7 US Dec Retail sales (ex auto) 1 0.2 0.4
China Dec Trade balance 3 52.15 54.1 US Jan Univ of Mich sent. 93 92.6
He expects sales to have fallen 2.3 per EARNINGS
Eurozone Nov Ind. prod. 1 0.1 0.6
cent over Christmas — defined as the six JPMorgan Chase Q4 $1.30 ($1.19) Eurozone Nov Ind. prod. 2 1.8 1.9
weeks to January 3 — and by 1.6 per cent Intel Q4 $0.63 ($0.74) France Dec CPI 1 0.1 -0.2 Mkt* = market consensus estimates. Prev*= previous actual
France Dec CPI 2 0.1 0 Units*; 1 = % change on previous period, 2 = % change on same
in the 13 weeks to November 28, the France Nov Current account 3 n/a -1.4 period in previous year, 3 = national currency bn, 4 = annualised
company’s third quarter. FRIDAY 15
France Dec HICP 1 0.1 -0.2 quarterly % change, 5 = 000s, NSA=not seasonally adjusted,
He said that “price investment, EARNINGS France Dec HICP 2 0.2 0.1 SA=seasonally adjusted. See more at ft.com/economic-calendar

with discounters Aldi and Lidl this week further deflation and a comeback from Citigroup Q4 $1.14 ($0.06)

THE AUTHORITY ON GLOBAL FUND MANAGEMENT | FINANCIAL TIMES | Monday January 11 2016
Asia
Holding Japan
Inc to account
New research shows
international investors
operating in Japan are
increasingly reluctant to call
out underperforming
companies in the world’s
third-largest economy.
High-profile scandals at
companies including Toshiba,
the electronics company,
have severely damaged
Japan’s reputation as a
business centre since
the financial crisis.
Yoshikazu Tsuno/AFP/Getty Images
PAGE 6
Regulators worry the structure of passive products could worsen market shocks
Record growth for ETFs despite fears
CHRIS FLOOD
The exchange traded fund industry
has set a new record for global asset
gathering that critics believe will fuel
concerns about the influence passive
funds have on financial markets.
The jump in assets comes as US
regulators stepped up their scrutiny
of ETFs, which have grown in popu-
larity for providing cheap exposure
to equities and bonds.
The Securities and Exchange Com-
mission last month issued a report
examining the role ETFs played in
the wild price moves that severely
disrupted trading on Wall Street on
August 24.
fm
The fear is that the structure of
ETFs and index funds could worsen
market shocks when they happen.
SEC commissioner Luis Aguilar
said at the end of last year of the
August disruption: “Why ETFs
proved so fragile that [August]
morning raises many questions and
suggests it may be time to re-exam-
ine the entire ETF ecosystem.”
According to ETFGI, the London-
based consultancy, ETFs attracted
net inflows of $372bn in 2015, a 10
per cent increase on the previous
year.
Legendary investor John “Jack”
Bogle, who founded Vanguard, the
low-cost fund giant, told FTfm last
year: “Mark me as a member of a
small group of cohorts who are dubi-
ous about the utility of ETFs for long-
term investors.”
Adam Laird, head of passive
investment at Hargreaves
Lansdown, the fund supermarket,
said: “ETFs are an area of growing
concern for regulators. This
stretches beyond the SEC to Euro-
pean regulators as well, because the
growth of ETFs is changing behav-
iour in markets.
“Although these are not new con-
cerns, as some of the same questions
about liquidity can also be asked of
traditional mutual funds, it is the
speed of ETF growth that is playing
on the minds of many regulators.”
The ETFGI figures show that
BlackRock, the world’s largest fund
manager, was the fastest-growing
ETF provider for a second year, with
its iShares operations pulling in a
record $139bn in 2015, up 36 per cent
on 2014.
“We saw new records established
for ETF asset gathering in Europe,
Canada and Japan, with growth from
multiple sources. ETFs are now even
available in Iran,” said Deborah
Fuhr, co-founder of ETFGI.
continued on page 7
Face to face
‘The industry as a whole can
have a bit of a blind spot,’ says
Daniel Godfrey, former CEO of
the Investment Association
PAGE 4
Aberdeen
signals first
interest in
passive
MADISON MARRIAGE
Aberdeen Asset Management has
given the first sign that it is interested
in entering the passive fund market.
The move would mark a significant
departure for the fund company best
known for its active investment style.
Aberdeen, Europe’s third-largest
listed fund company by assets, has
already made a series of bolt-on
acquisitions over the past two years to
reduce the group’s exposure to
emerging markets and to counter
heavy outflows.
A spokesperson for the company
said it is “looking at” entering the
exchange traded fund industry,
which has boomed in popularity
among investors for providing cheap
exposure to equity and fixed income
markets.
ETFs drew $338bn of net assets in
2014 and $319bn in the first 11
months of last year.
Any push by Aberdeen into ETFs is
more likely to make use of the quanti-
tative teams it gained through its pur-
chase of Scottish Widows Investment
Partnership in 2014 than through
acquisitions, according to the spokes-
person. The spokesperson added that
there will be no immediate push and
that Aberdeen is considering ETFs
over a five-year timeframe.
Goldman Sachs Asset Manage-
ment, Franklin Templeton and Legg
Mason, the US active fund houses, all
ventured into ETFs for the first time
last year.
2 | FTfm
INSIDE
Comment
Asset management is a
particularly fine example
of agency problems, says
Sophia Grene as she
analyses the industry’s
dance of denial
PAGE 8
View from the US
For all Ukraine’s
troubles, its external
bonds had the highest
returns of any
sovereign debt last year,
says John Dizard
PAGE 8
Regulation
Securities lending is an
area of growing concern
to global regulators,
which are worried about
potential risks to financial
market stability
PAGE 9
Pensions
More risk is not the
answer for defined
benefit schemes,
warns Jon Hatchett, as
many are already
running significant
unhedged risks
PAGE 10
fm
JANUARY 11 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
Number One Southwark Bridge
London SE1 9HL
+44 (0)20 7873 3000
©The Financial Times Limited 2015.
Reproduction of the contents of FTfm in
any manner is not permitted without the
publisher’s prior consent. “FINANCIAL
TIMES” and “FT” are registered Trade
Marks and Service Marks of the Financial
Times Limited
Record number of China funds launched
INVESTMENT STRATEGY
International asset
managers still see
good opportunities
ATTRACTA MOONEY
A record number of China-fo-
cused mutual funds were
launched in 2015 despite huge
turmoil in the country’s stock
markets, leaving asset manag-
ers accused of piling into a
market where many will strug-
gle to perform strongly.
More than 830 funds
focused on China were
launched in 2015, up from 406
in 2014, according to Thomson
Reuters Lipper, the data pro-
vider.
Although China’s stock mar-
kets have grown over recent
years, they experienced huge
volatility in 2015. Billions of
dollars were wiped off the
value of listed businesses in
just a few weeks last summer.
International funds that
invest in Chinese stocks lost up
to 22 per cent in just one week
in August, according to data
from Lipper, although most
provided positive returns over
the year.
The market turmoil has con-
tinued in 2016. Trading on
China’s two main stock
exchanges, in Shenzhen and
Shanghai, was suspended
twice last week after a “circuit
breaker” mechanism kicked in
amid sharp drops in share
prices. The mechanism was
suspended on Friday.
Pooling UK local pension fund assets is ‘mere tinkering’
CHRIS FLOOD
George Osborne, the UK chan-
cellor, has been urged to
adopt more radical reforms of
local government pension
plans in order to achieve his
ambition of stimulating more
investment in infrastructure
projects.
To save costs and boost
infrastructure investment, Mr
Osborne has proposed that
half a dozen large wealth funds
should replace the current
fragmented system of 89 funds
that comprise the £179bn UK
Local Government Pension
Scheme (LGPS) in England
and Wales.
But Michael Johnson, a
research fellow at the Centre
for Policy Studies, the UK
think-tank, believes the meas-
NEWS
China’s market turmoil
has continued in 2016
How Hwee Young/EPA
‘The Chinese economy
now is just simply
too big to ignore.
As an asset manager
you simply have to
have [a China fund]’
ures will not deliver the much-
needed improvements in
infrastructure spending.
“What we are witnessing is
mere tinkering, masking the
fundamental truth that the
LGPS is not sustainable,” he
said.
Mr Johnson called for the
government to scrap the cur-
rent system of gilt-edged
defined benefit final salary
pensions for local authority
employees by 2018 and to
replace this with a new defined
contribution retirement offer-
ing.
“If the LGPS is to have a
long-term future, its DB status
will have to cease,” he said.
Moving to a DC scheme
would allow the existing DB
assets of the 89 English and
Welsh LGPS members to be
Jake Moeller, head of UK and
Ireland research at Lipper,
said: “The China story has
peaked. The funds were in the
process of being launched just
at the peak [of the Chinese
market].”
International asset manag-
ers said they still see good
growth opportunities in the
country. Neither slowing eco-
nomic growth nor the turbu-
lent trading environment is
deterring them from investing.
Hugh Young, managing
director of Aberdeen Asset
fully pooled into a few new
British wealth funds.
Jeff Houston, secretary of
the Local Government Pension
Scheme advisory board, disa-
greed. He said that Mr John-
son’s proposals would “require
a major change of policy by the
government, which has com-
mitted to retaining a DB pen-
sion system for local authority
employees”.
Mr Houston added that
LGPS members were already
working to pool their assets to
meet the government’s crite-
ria.
The London Pensions Fund
Authority and the Lancashire
County Pension Fund signed
an agreement in 2014 to com-
bine their assets to form a
£10bn investment vehicle.
Eight Midlands LGPS funds
FINANCIAL TIMES Monday 11 January 2016
Management in Asia, which
launched a fund focused on
the onshore Chinese equity
market last year, said: “Recent
events have not altered our
long-term view on China. The
economy is slowing as the
administration seeks to transi-
tion it from being export led to
one driven by domestic
demand.
“But we have no doubt
China will remain a key driver
of the global economy
throughout the next decades.”
David Stevenson, head of
George Osborne
also announced in December
that they would create a £35bn
multi-asset investment vehi-
cle, while the local authority
pension funds for East Riding,
business development at Bar-
ing Asset Management, the
£33.9bn fund house that has
several China-focused funds,
added: “The Chinese economy
now is just simply too big to
ignore. As an asset manager
you simply have to have [a
China fund].”
Mr Stevenson said that as
the Chinese market gradually
opens up to international
838 406
Number Number
of funds of funds
focused focused
on China on China
launched launched
in 2015 in 2014
investors, it has become easier
for global asset managers to
launch China-focused interna-
tional products.
However, according to Lip-
per’s data, the majority of the
China-focused funds launched
last year were domiciled in
China and aimed at the coun-
try’s expanding retail invest-
ment market.
“In 2015 there was extraor-
dinary growth in the local,
onshore fund industry,” said
Daniel Celeghin, head of Asia-
Pacific at Casey Quirk, a con-
sultancy.
China’s mutual fund indus-
try grew 25 per cent last quar-
ter and the country is set to
overtake Australia and Japan
as the largest mutual fund
market in the Asia-Pacific
region, according to Z-Ben
Advisors, the consultancy.
Surrey and Cumbria were
reported in November to be
discussing the launch of an
investment partnership, pool-
ing £9bn in assets.
Mr Johnson acknowledged
that some of the larger LGPS
funds are already looking seri-
ously at infrastructure, with
the London Pensions Fund
Authority and Greater Man-
chester Pension Fund plan-
ning to invest £500m over the
next three to four years.
But he questioned whether
LGPS members within the new
pooled investment vehicles
would be able to agree on
which infrastructure projects
matched their individual
needs.
“Collaboration is not neces-
sarily the panacea that many
believe,” he said.
FINANCIAL TIMES Monday 11 January 2016 FTfm | 3

NEWS

UK pension funds pile pressure on fund houses

PENSIONS INDUSTRY
Schemes to reduce
reliance on costly
external fund houses
MADISON MARRIAGE
Many of the UK’s largest pen-
sion schemes plan to increase
the size of their internal invest-
ment teams and reduce their
reliance on what they view as
costly external fund managers
and investment consultants.
According to research from
Forster Chase, the asset man-
agement recruitment firm, 26
out of 37 large pension
schemes, each with at least
£1bn of assets, intend to hire
additional internal investment
staff in 2016. Most of these
schemes already have at least
six internal investment
employees, and plan to add
another one or two staff mem-
bers in the coming months.
This trend to take assets in-
house threatens to intensify
pressure on profitability in the
asset management industry as
more institutions run poten-
tially lucrative investment
contracts themselves.
Leo Meggitt, asset manage-
ment partner at Forster Chase,
attributed the expansion plans
to schemes wanting to “man-
age more of the fund inter-
nally, take greater control of
the investment strategy and
reduce consultant spend”.
A number of large pension
schemes have already made
significant efforts to run more
money internally in the belief
they can achieve similar
returns at a fraction of the cost.
The Greater Manchester
pension fund, the UK’s largest
local government scheme,
with £18bn of assets, has dou-
bled the size of its in-house
investment team over the past
18 months, to 20 employees.
Kieran Quinn, chairman of
the scheme, said the decision
was made as “the writing was
on the wall” in terms of the
amount of money that could
be saved on fees paid to exter-
nal managers.
Pension schemes can
represent a significant
proportion of an asset
manager’s business
Chris Batson/FT
‘Historically, these
mandates have also
been some of the most
stable and “sticky”’
Railpen, the £21bn pension
scheme, also said last year it
had achieved £50m of annual
cost savings by cutting the
number of external equity
managers it worked with from
17 to two and managing more
money internally.
The Pension Protection
Fund, which pays compensa-
tion to members of final-salary
schemes if their employers go
bust, similarly said last year it
would shift the £22bn of pen-
sion assets it outsourced to
third-party managers in-
house to save costs.
Tim Wright, partner in the
rewards practice at PwC, said
many schemes have boosted
their internal investment
capabilities to save money, in a
move that has troubled fund
managers.
“Although the fee margins
are often lower on these man-
dates than others, [pension
schemes] can still represent a
significant proportion of the
asset base and revenues of an
asset management business.
“Historically, these man-
dates have also been some of
the most stable and ‘sticky’,
providing asset management
firms with a critical mass of
assets from which they can lev-
erage new products and
opportunities.”
Pension schemes want to
attract new investment profes-
sionals from asset manage-
ment companies, investment
consultancies and other pen-
sion funds, says Mr Megitt.
He added that total compen-
sation for pension chief invest-
ment officers has increased by
35 per cent in the past four
years, “well above the average
increase in the asset manage-
ment and investment consult-
ing sectors, and a reflection of
the need to attract quality to
such crucial positions”.

C Hermes, the £21bn investment

Movers
& shakers
C Two senior hires at Aviva Investors,
the £263bn asset management arm of
Aviva, the UK insurer. David Clayton
joins as chief financial officer from
Standard Life in Edinburgh, where he
was a colleague of Euan Munro, the
chief executive of Aviva Investors.
Mike Craston will become global
head of business development after
moving from Legal & General
Investment Management where he
was chief executive of both LGIM’s
American and Asian businesses.
C State Street Global Advisors, the
$2.2tn asset management arm of
State Street, the Boston-based bank,
has appointed Philippe Roset as head
of SPDR ETFs for the Netherlands. Mr
Roset joins from ETF Securities, the
London-based investment manager,
where he was head of Benelux.
C Two new asset managers in the
equity long/short team at Man Group,
the world’s largest publicly traded
hedge fund that has $76.8bn in assets
under management. Rory Hill and Ben
Lynch both join from Moore Capital, a
rival hedge fund.
C Nicholas Brooks joins Intermediate
Capital Group, the €20.2bn London-
based asset manager, as head of
economic and investment research, a
newly created role. Mr Brooks
previously worked in a similar role for
ETF Securities in London.
manager, has appointed David
Stewart as its new chairman. Mr
Stewart, currently a non-executive
director at Hermes and a former chief
executive of Odey Asset Management,
will succeed Paul Spencer, who has
served as chairman since 2011.
David Clayton
C Andy Kelly has moved from Legal &
General Investment Management to
Kames Capital, the £55.7bn Edinburgh-
based investment manager, as
business development manager.
C Vincent Chan has joined Schroders,
the $446.5bn London-based fund
house, as head of multi-asset product
strategy for Asia, a new role based in
Singapore. Mr Chan previously worked
Philippe Roset for NTUC Income, the Singaporean
insurance company.
C Ashburton Investments has hired
Matthew Kemp as head of UK
wholesale. Mr Kemp joins the $10bn
emerging markets investment arm of
FirstRand, the African financial
services provider, from Smith &
Williamson Investment Management.
C Prime Partners, a Geneva-based
Nick Brooks independent wealth manager, has
hired François Savary as chief
investment officer. Mr Savary was
previously CIO of Reyl & Cie, the Swiss
private banking group.
C Sandra Blomgren has joined AP3,
the SKr304bn Swedish pension fund
as head of risk and performance.
Ms Blomgren previously worked for IF
P & C Insurance, the Nordic insurance
group. .
4 | FTfm
‘Asset
management
can have a bit
of a blind spot’
DANIEL GODFREY
The former CEO of the IA
says putting investors first
ensures commercial success
ATTRACTA MOONEY
I
t is early November and Daniel
Godfrey suggests meeting in the
members’ room of the Tate Mod-
ern, the art gallery housed in the
former Bankside power station
in London.
We have been speaking by phone or
through the private messaging fea-
ture on Twitter, the social media plat-
form, since rumours emerged in
October that Mr Godfrey was about to
be ousted as chief executive of the
Investment Association, the UK’s
asset management trade body.
But our November coffee is the first
time we meet in person since his
departure from the IA, which came
after his reform agenda irked two of
the UK’s largest and most influential
fund groups.
During his three years at the helm
of the IA, Mr Godfrey championed
greater disclosure of the cost of
investment products. He also intro-
duced a code of conduct, called a
statement of principles, where asset
managers were asked to promise to
put clients’ interest first.
These initiatives and others like
them split the industry, with some
accusing Mr Godfrey of acting like a
regulator and not listening to the IA’s
members. As tensions rose, Schrod-
ers, where Mr Godfrey had worked
early in his career, and M&G threat-
ened to quit the association.
On October 6, when I called Mr
Godfrey as it became clear he would
leave the IA, the 54-year-old was — as
he so often is — cautious in what he
would say. Although he declined to
comment, he seemed both surprised
and saddened at how events had tran-
spired.
In person at the Tate Modern, little
has changed. The former chief execu-
tive, who first became well known in
the fund industry during his 11-year
stint at the Association of Investment
Companies, sits by a window over-
Born 1961
Salary £532,595 (2014, as chief
executive of the IA)
Education BA in economics,
University of Manchester
Career 1982-85 Life inspector, UK
Provident
1985-89 Marketing manager,
Schroders
1989-91 Head of sales and
marketing, Laurentian
1991-94 Marketing consultant,
Flemings
1994-98 Marketing director,
Flemings
1998-2009 Director general, AIC
2009-12 Director of
communications, Phoenix Group
2012-15 Chief executive,
Investment Association
FACE TO FACE
looking the construction of the gal-
lery’s new wing. To his right, the City
of London, the UK’s historic financial
district, where both Schroders and
M&G have offices, is visible.
Mr Godfrey, who was paid £532,595
for leading the IA during 2014,
remains reluctant to discuss the
events that led to his ousting. He
does, however, dismiss some of the
accusations that have been levelled at
both the IA and him, especially that
he did not listen to the trade body’s
members on issues such as the state-
ment of principles.
The father of four says a 17-strong
committee put forward the princi-
ples, which were reviewed by the IA
board twice, before a draft version
went out to members for an “exten-
sive” consultation. “The IA is not a
regulator, nor was the idea of the
principles my idea alone,” he says.
When we speak again last week, Mr
Godfrey is back in the news. This time
it is because M&G and Schroders have
decided to renew their membership
of the IA — albeit only for six months.
Mr Godfrey says he is “delighted” the
two fund houses have remained
members, but, as usual, he will not be
pushed further on the issue.
Since leaving the trade association,
Mr Godfrey has been cast as a con-
sumer champion, but this title seems
incongruous. He wants investors who
entrust asset managers with their
money to be treated better, but not
necessarily out of altruism.
Instead, he argues that if the fund
industry is more transparent and
takes steps to treat consumers better,
it can improve its reputation and be
more successful in the long run. It is a
win-win for both investors and asset
managers, he says.
“[Putting investors first is] what
will grow the cake and secure the
long-term commercial success of the
industry, which has the potential to
play a very important role in ordinary
citizens’ lives, as well as in the eco-
nomic life of the country, through
good stewardship,” he says, sounding
every inch an industry champion.
Mr Godfrey, who has just returned
from a two-week holiday in Mauri-
tius, is back doing some work within
the fund industry, advising a start-up
business that wants to combine
finance and technology. He declines
to name the company, but from his
Twitter account it is clear the start-up
is called Moneybox.
FINANCIAL TIMES Monday 11 January 2016
The fintech business, which got in
touch with Mr Godfrey after he left
the IA, is planning to target “millenni-
als”, those born between the early
1980s and early 2000s, with an app
aimed at making saving simpler.
The experience has been eye open-
ing, says Mr Godfrey, who sports a
beard many hipsters in the technol-
ogy industry would be envious of. He
is working with people who are much
younger and have a different perspec-
tive on the world than the people “I
am used to working with”, he says,
“and that is quite exciting”.
He adds: “[These are] people who
are more inclined to ignore what has
been done before and say: ‘Well, how
can we do this?’”
In the traditional asset manage-
ment industry, in contrast, people are
often quite satisfied with things the
way they are, Mr Godfrey says. This
complacency is the biggest risk asset
managers face, he adds. “The indus-
try as a whole can have a bit of a blind
spot around some issues.”
The Londoner, who grew up in the
north of the capital and now lives in
Westminster, is clear about what the
industry needs to do to be successful:
it should embrace technology, be
transparent about fees, offer simpler
products and think longer term.
Most investors, when they start
investing, have decades before they
need their money back, so they need
products that “deliver good returns
over very long periods of time rather
than chopping and changing and
short-term trading”, he says.
Has he thought about the long term
for himself? The Arsenal fan says he is
weighing up his future, but he adds: “I
don’t have any concrete plans at the
moment.”
What has become clear from our
conversations is that despite all that
happened last autumn, Mr Godfrey is
still very much enamoured with asset
management — and this is where he
sees himself working. “The fact that I
am no longer at the IA makes no dif-
ference to my belief in the value of the
investment management industry
and the potential it has,” he says.
“I have every intention of pursuing
a career in the investment sector.”
 Asset Management
sset Management Asset Management
6 | FTfm
Foreign
investors fear
holding Japan
Inc to account
International investors are increasingly
reluctant to call out underperforming
companies, says Madison Marriage
I
n Japan there has long been a
sense that domestic investors are
too supportive of company man-
agement.
But new research shows inter-
national investors operating in Japan
are also increasingly reluctant to call
out underperforming companies in
the world’s third-largest economy.
Nicholas Smith, Japan strategist at
CLSA, the Asian brokerage and
investment group, believes this ten-
dency for foreign investors to back
motions at company meetings in
Japan is partly to blame for sclerotic
growth in the corporate sector.
Although the percentage of votes
cast by domestic investors against
chief executives at companies in
Japan’s Topix index went up slightly
in 2015, the percentage of votes cast
by foreign investors against company
bosses fell from 17.8 per cent to 15.8
per cent.
“Foreigners have become less will-
ing to complain,” says Mr Smith.
He adds: “It is one of the enduring
mysteries of corporate Japan: why do
shareholders of badly underperform-
ing companies keep voting their pres-
idents back in again, year after share-
price-crushing year?
“I have spoken with some very big
[international asset management] cli-
ents who said they do not vote against
management [in Japan]. If they don’t
like [a company], they sell the shares,
but they want to maintain their rela-
tionships[withseniorexecutives].”
Pressure on foreign and domestic
investors to take a tougher stance
with company management is inten-
sifying, however. This is partly a
result of high-profile scandals at com-
panies including Toshiba, the tech-
nology conglomerate, Olympus, the
optical equipment maker, and
Takata, the car component manufac-
turer, that have severely damaged
Japan’s reputation as a business cen-
tre since the financial crisis.
Many observers believe these
scandals could have been detected
earlier or prevented altogether if
investors had been more willing to
question business practices and
underperformance at the companies
in question.
To improve matters, Shinzo Abe,
Japan’s prime minister, implemented
a radical overhaul of the corporate
sector as part of his economic reform
programme (known as Abenomics)
after taking office in 2012.
One of the most important changes
was the introduction of a stewardship
code in 2014 that encourages institu-
tional investors to take a more active
approach to questioning governance
at the companies they are invested in.
Institutional Shareholder Services,
the proxy adviser, also said in 2014 it
would recommend investors vote
against the reappointment of senior
executives at Japanese companies
that fail to meet a five-year average
return on equity of 5 per cent.
More than a third (38 per cent) of
companies in the Topix index failed
to meet that target in 2015, according
to Mr Smith.
There are early signs that Japanese
investors have begun to change their
attitude towards company manage-
ment as a result. Votes cast by domes-
tic investors against chief executives
at companies in the Topix index went
up from 9.1 per cent in 2014 to 9.7 per
cent in 2015.
But foreign investors, who hold
roughly a third of the shares in Japan’s
largest companies, seem increasingly
cautious.
Mr Smith says: “Foreigners are
clearly voting in line with manage-
ment. Those [investors] that have
observed the new stewardship code
are the Japanese [institutions]. For-
eigners preach governance to the Jap-
anese — but the foreigners are the
ones who need to [apply the same
standards].”
THE BIG PICTURE
‘People think Japan
has a different culture.
The truth is it is
not that different’
Room for improvement
High-profile company
scandals rock Japan
Japan was rocked by two high-
profile company scandals last year,
adding more urgency to the drive
by Prime Minister Shinzo Abe
(pictured) to improve corporate
governance in the country’s
business sector.
Takata, the car equipment
manufacturer, was fined $70m by
the National Highway Traffic
Safety Administration of the US
last November for knowingly
selling defective products.
The US safety regulator said it
believed the company’s use of an
ammonium nitrate-based propellant
in its airbag inflators was a factor in
the equipment exploding.
These ruptures have been
linked to eight deaths worldwide
and at least 100 injuries.
Toshiba, the electronics
company, also found itself at the
heart of a corporate scandal when
it emerged that the 140-year-old
Japanese group had inflated net
profits by nearly $1.3bn over a
seven-year period.
The affair exposed a corporate
culture where employees were
afraid to speak out against bosses,
as well as weaknesses across most
of Toshiba’s businesses once the
inflated figures were corrected.
Howard Sherman, head of
corporate governance business
development at MSCI, the index
provider, says: “The Toshiba
accounting scandal was a debacle
and clearly showed there is room
for improvement in financial
reporting among Japanese
companies.”
Shares in Takata and Toshiba
halved last year.
FINANCIAL TIMES Monday 11 January 2016
Corinna Arnold, manager of the
Japan Stewardship fund at RWC, the
UK investment company, agrees: “It
is very hard to get institutional inves-
tors to vote in a proactive way — this
issue is compounded by the fact
[that] people think Japan has a differ-
ent culture. The truth is it is not that
different.
“Unless you have a really high pro-
file public dispute between activist
shareholders and company manage-
ment, a lot of [annual meetings] pass
by in a flicker of an eye and a lot of
votes are in favour of management.”
Some of the well-known companies
to have missed their return target
include Panasonic, the television
manufacturer, which has a five-year
ROE of -11.9 per cent; and Sony, the
electronics manufacturer, which has
a five-year ROE of -7.9 per cent,
according to CLSA.
The worst performer is electronics
company Sharp, which has a five-
year ROE of -75.8 per cent. Nonethe-
less, 90 per cent of the company’s
shareholders approved its directors
at an annual meeting last June.
Howard Sherman, head of corpo-
rate governance business develop-
ment at MSCI, the index provider, is
more understanding of investors’
reluctance to vote against proposals
at such companies.
He says: “If you are a large institu-
tional investor and know anything
about Japanese corporate govern-
ance, you know relationships matter a
great deal. Most investors do not want
to pull that trigger [of voting against
management] and prefer to engage
with companies. That is a more effec-
FINANCIAL TIMES Monday 11 January 2016 FTfm | 7

THE BIG PICTURE

Votes cast against Japanese company bosses Record investor awareness of active
managers’ inability to beat
agementindustryisshifting.
“2015 was the year where it
Deutsche Asset & Wealth
Management’ global inflows
Per cent
By foreign investors
growth their benchmarks has helped
spur growth of the ETF mar-
became evident that ETFs are
not just an instrument, they
tripled to $28.4bn, helped by a
strong performance for its
By domestic investors 20 for ETFs ket.
Nine out of ten actively
are an ideology that will trans-
form the face of asset manage-
business in the US market,
while Japanese fund houses
managed European equity ment as we know it over the Nomura, Nikko Asset Manage-
15 funds underperformed their next five years,” he said. ment and Daiwa all registered
continued from page 1 benchmark over the past dec- According to the ETFGI substantial increases in net
A record number of compa- ade, according to data from data, State Street Global Advi- inflows.
10
nies (43) entered the ETF mar- S&P Dow Jones Indices. sors, the third-largest ETF The inflows in Japan were
ket last year. Christos Costandinides, manager by assets, was the aided by the Bank of Japan
5 Growing dissatisfaction with founder of BlueHarbor, a US- only top-20 ranked provider buying equity ETFs as part of
high fees in the traditional based investment consultancy, by assets to register net out- its vast quantitative easing
0 fund market and increasing said the shape of the asset man- flows last year. programme.
2014 2015
Source: CLSA

High-profile scandals tive,sophisticated approach.”

at companies But Mr Sherman admits there is
including Takata, “room for improvement” in terms of
the car component how Japanese companies are run and
manufacturer (left), in encouraging investors to push for
have severely those changes.
damaged Japan’s Women account for just 3.4 per
reputation as a cent of board members at big Japa-
business centre; nese companies, for example — far
Sony has a five-year below the proportion of female board
return on equity of members (15.9 per cent) in devel-
-7.9 per cent (above) oped market companies in the MSCI
David Paul Morris/Bloomberg; Bill
Pugliano/Getty Images
World index.
The average governance score for
Japanese companies is 3.8, lagging
behind the average score of 5.3 for
MSCI World companies.
Mr Sherman says: “There have
been some significant developments
[in Japan], but there is clearly a lot
more that can be done.
“If ROE targets are not addressed in
a few years, I would expect to see
more votes against [management].”
To encourage shareholders to vote
against management where appro-
priate, Mr Smith believes Japan’s Gov-
ernment Pension Investment Fund
‘Foreigners (GPIF), the world’s largest pension
scheme with $1.1tn of assets, should
preach make its voting policies more trans-
governance to parent to set an example to other
investors.
the Japanese — At the moment it is not possible to
but the discern how the pension scheme has
instructed its underlying fund man-
foreigners are agers to vote at company meetings.
the ones who Mr Smith, who describes the lack of
shareholder activism in Japan as
need to [apply “depressing”, says: “[The GPIF’s lead-
the same ers] need to make it absolutely clear
how they feel about corporate gov-
standards]’ ernance and engagement, because
clearly people are not engaged.”
8 | FTfm
The dance of denial about agency problems
COMMENT
Sophia
Grene
I
f you are having trouble sleeping,
try counting agency problems in
the asset management industry.
It is an excellent insomnia
cure, with the additional benefit
that if you have a visual mind, you can
draw a (huge) imaginary diagram.
And then either you are asleep or you
are ahead of most of the industry in
understanding why it is such a long
way from the ideal that many asset
managers would like to believe it is.
An agency problem occurs when a
third party is asked to carry out an
activity on behalf of the principal in
which the interests of the agent may
be different from those of the princi-
pal. For example, when I was an au
pair, my employer wanted me to do
all my shopping in the market where
the best produce and the cheapest
bargains were to be had. But I found it
infinitely easier to go to the super-
Ukraine: dismal economic prospects, great sovereign bond
F
or all Ukraine’s troubles, its
external bonds had the
highestreturnsofanysover-
eign debt last year. The opti-
mists who actually held on
to the paper through civil war, depres-
sion, devaluation, restructuring, and,
finally, at the end of December, selec-
tive default, would have made a 41 per
cent profit ontheirposition.
Or perhaps I should say “alleged
default”, since an arcane court battle
over a $3bn Ukraine bond issue held
by the Russian government is loom-
ing in the coming months. This is not
only a bond, but an extremely clever
piece of geopolitical manoeuvring.
The $3bn two-year, 5 per cent
Eurobond was not completed under
the most auspicious circumstances.
The prospectus is dated February 17
2014, and the final bits of documenta-
tion were only completed on Febru-
ary 19. Just to refresh your memory,
what the present Ukraine govern-
ment would call the Euromaidan rev-
olution and the Russian government
market, where the prices were fixed
and I did not have to haggle in my exe-
crable French.
It is well documented that there is a
problem at the level of portfolio man-
ager, where the investment decisions
should be taken with a long-term
investment horizon in mind, but are
frequently driven more by the
thought of quarterly or even annual
performance results.
Professor John Kay’s recent book,
Other People’s Money, is an exploration
of agency problems and conflicts of
interest in financial services. Asset
management is a particularly fine
example of agency problems.
Any supply chain generates such
conflicts, but in general it is relatively
straightforward to fix or at least man-
age them by using appropriate con-
tracts and payment mechanisms.
The asset management industry is
trickier than most though. First, it
can be hard to tell if the agency prob-
lem is an issue, because it can be hard
to know whether a fund manager is
doing their best for the investors —
are they prioritising the short term or
avoiding a long-term problem? Sec-
ond, the asset management industry
functions on trust to a large extent,
a coup d’état, took place between Feb-
ruary 18 and February 23. Shootings
in a public square, collapse of state
control, head of state fleeing with
henchmen and family; altogether not
the usually desired background for a
closing ceremony.
Yet the customers of VTB Capital,
the sole lead manager, were nothing if
not contrarian. Also, they had some
very good documentation on their
side. I have gone over the 219 page pro-
spectus, which is a credit to the names
of counsels White & Case and Clifford
Chance, as well as Citibank, not to
neglect the local counsel and the Law
DebentureTrustCorporation.
The prospective holder of the notes
is given good disclosure of the dismal
economic prospects for Ukraine and
the widespread allegations of govern-
ment corruption, along with a brief-
ing on the nation’s not entirely happy
history. Ukraine’s sovereign immu-
nity is explicitly waived (except in the
US), and the duly elected govern-
ment accepts English law and arbitra-
tion. The “use of proceeds” is given as
“general budgetary purposes”, which
in Ukraine were pretty open ended.
Along with the standard Eurobond
clauses and financials, there were a
couple of innovative conditions. One
was a clause allowing the holder (Rus-
sia or its successors) to declare a
default if Ukraine’s government debt
OPINION
which entails a certain amount of wil-
ful blindness to the conflicts.
Clients still trust their independent
financial advisers very much, despite
issues such as trail commission and
product churn. Without that trust,
It can be hard to know
whether a fund manager
is doing their best for
the investors
to gross domestic product exceeded
60 per cent. The other allowed the
holder to “cross-default” the Ukraine
bonds on any indebtedness owed to
the noteholder or to any entity major-
ity owned or controlled by the note-
holder. Such as, say, Gazprom.
So the bonds, which were listed on
the Dublin stock exchange, were both
well documented and prospectively
enforceable market instruments and
bilateral sovereign debt. That has
meant that for the past two years
Ukraine has faced not only territorial
seizure, violent separatism and eco-
nomic collapse but the possibility of
Argentina-like grinding international
litigation.
Which is now a reality. On January
1, the Russian Ministry of Finance
announced that “Ukraine is now
legally in default on the Eurobond”,
and that it “has initiated proce-
dures . . . with a view to commencing
legal proceedings as soon as possible”.
Whitney Debevoise, an experi-
enced sovereign debt lawyer at
Arnold & Porter in Washington, says:
“Arbitration like this can be done in
six months, but Ukraine may try to
delay. Ukraine is likely to throw up
some trial balloons, perhaps say they
were invaded or they have been
under duress, but at the end of the
day, those arguments are not likely to
succeed.”
savers would be left in the uncomfort-
able position of managing their own
money without expert advice, or del-
egating their financial wellbeing to
someone they do not trust.
An extreme example has been
revealed in the private equity indus-
try, where US public pension funds
have failed to act on behalf of their
members by demanding a full
accounting of the fees and expenses
paid to managers, while managers
have exploited this inattention to the
full.
For all Ukraine’s troubles,
its external bonds had the
highest returns of any
sovereign debt last year
The Russians have not been
entirely unyielding. The ministry
added in its January 1 statement:
“The commencement of legal pro-
ceedings does not preclude a con-
structive dialogue with a view to
reaching an acceptable solution.”
Russia has, arguably, had some
openings to allege a default on the
Eurobond’s covenants before it
matured on December 20. But rather
than accelerate the due date of the
principal, it just waited for the more
outrighteventofdefault.TheRussians
did not, however, go along with the
haircut that Ukraine’s private sector
bondholdersacceptedintheautumn.
FINANCIAL TIMES Monday 11 January 2016
This dance of denial occurs at all
levels of the industry (did anyone
mention consultants?), but given that
the asset managers have a fiduciary
duty to act as though agency prob-
lems did not exist, the onus is surely
on them to open up a debate about
how to improve things.
This will not be easy, because to
talk about the ways in which the
industry can and does fail the inves-
tor will inevitably undermine the
trust that is essential to its smooth
functioning, but it will surely have a
better outcome than waiting for regu-
lators to impose more restrictions on
practice.
That might limit the opportunities
for misdoings, but it would also
undermine trust. And the law of
unintended consequences means it
would almost certainly make it
harder for investment managers to
do their best.
Since the Financial Conduct
Authority, the UK’s regulator, is cur-
rently examining the asset manage-
ment industry to ensure investors are
getting the best possible deal, it may
be too late, but at the very least asset
managers must engage in honest
debate and be open to criticism.
Even Ukraine’s friends among aca-
demic lawyers do not think Cristina
Kirchner-style bluster about “odious
debt” would work in fending off the
Russian claim. Anna Gelpern, profes-
sor of law at Georgetown University
and senior fellow at the Peterson
Institute of International Affairs says:
“I think Russia did a very, very smart
thing. Do I think it is good for the sys-
tem? No. If I represent Russia, then I
am pleased and proud.”
Most probably Russia and Ukraine
will eventually agree a negotiated
solution as part of a broader package
deal that would include a settlement
of the “civil” war. As Mr Debevoise
points out: “[President] Putin has
already suggested a willingness to
accept payment in instalments,
which implies a net present value
reduction.”
The significance of the Ukraine-
Russia Eurobond goes far beyond the
$3bn or the particulars of the dispute.
As Prof Gelpern says: “What people
keep missing [about the bond] is that
when governments have the market
tools at their disposal, while at the
same time having access to all the
multilateral institutions, there are
huge arbitrage opportunities for
them. The governments can come in
when they want ahead of your claims.
Your readership should wake up to
that big time.”
FINANCIAL TIMES Monday 11 January 2016
Securities lending unsettles regulators
INVESTMENT STRATEGY
Market participants
concerned regulatory
changes damage liquidity
CHRIS FLOOD
S
ecurities lending — the
practice among institu-
tional investors of swap-
ping equities, bonds and
cash with one another — is
an area of growing concern to global
regulators who are worried about
potential risks to financial market
stability.
But some observers believe moves
by regulators to impose stricter rules
on securities lending could hurt
returns to investors, reduce profits
for asset managers and increase the
risk of asset price bubbles developing
in financial markets.
Tighter rules surrounding securi-
ties lending were imposed after some
investors incurred heavy losses
through transactions linked to Leh-
man Brothers, the US bank that col-
lapsed in 2008.
Market participants are concerned,
however, that the numerous regula-
tory changes are damaging liquidity
in equity and fixed income markets.
Stefan Gavell, head of regulatory
affairs at State Street, the US financial
services group, says securities lend-
ing activity remains well below the
levels seen before the financial crisis,
partly due to increased risk aversion
but also because the stricter rules
have made lending less attractive
financially.
“There have been more than 25
regulatory initiatives globally that
have affected demand and supply lev-
els for securities lending, as well as
the structure of transactions,” says
Mr Gavell.
He believes securities lending is “a
socially useful activity”, adding that it
would be “regrettable” if activity lev-
els fell further.
Josh Galper, managing principal of
Finadium, a US-based consultancy,
agrees: “Securities lending activity
has been heavily constrained by glo-
bal regulations that have dramati-
cally increased borrowing costs for
loans that were previously viewed as
low risk.”
Finadium examined the securities
lending activities of a group of 54 US
public pension funds between 2008
and 2013. These schemes together
earned almost $104m between 2008
and 2013.
Some investors did lose money in
2008 from securities lending activi-
ties after Lehman Brothers collapsed,
one of the primary reasons for the
introduction of stricter rules. But the
54 public pension plans earned a total
of $20.6m from securities lending in
that year.
FTfm | 9
NEWS
Although the new rules are not
likely to affect the availability of the
largest and most liquid US stocks for
securities lending, they could have a
greater impact on transactions
related to smaller companies, he says.
“End investors should be con-
cerned because impeding short-sell-
ing activity could lead to asset price
bubbles forming,” says Mr Jones.
Nonetheless regulators are contin-
uing to increase their monitoring of
securities lending, which remains an
opaque market with limited publicly
available data.
According to Markit, the data pro-
vider, the value of assets on loan glo-
bally stands at around $2tn, but this is
just part of a larger $15tn worldwide
pool of lendable assets.
In November, the Financial Stabil-
ity Board, the body that co-ordinates
financial regulators, published pro-
posals to gather data on securities
lending on a global basis from the end
of 2018.
The Securities and Exchange Com-
mission, the US regulator, last year
also put forward plans requiring US-
registered funds to provide monthly
data on securities lending activities.
BlackRock Finadium also looked at revenues As part of its efforts to limit the
is one of generated by securities lending for a
Securites lending revenues for... build-up of leverage outside the
several large group of 10 large investment manag- 54 US public pension funds 10 leading US investment banking system, the FSB has also, for
investment ers comprising BlackRock, Vanguard, ($m) managers* ($m) the first time, set global rules that
managers Fidelity, JPMorgan AM, Franklin 20 8 require the value of equities and cor-
involved in Templeton, Charles Schwab, T Rowe porate bonds to be marked down
securities Price, MFS, Putnam and BNY Mellon 15 6 when they are used as collateral in
lending subsidiary Dreyfus. securities lending transactions.
Scott Eells/Bloomberg
These managers together earned 10 4 But proponents of securities lend-
$19.3m from securities lending activi- ing believe the activity is a valuable
ties between 2011 and 2015. 5 2 source of additional returns for insti-
Although these revenues are rela- tutional investors.
tively small, investors receive indi- 0 0 Asset owners such as pension funds
rect benefits through lower trading 2006 08 10 12 13 2011 13 15 might earn only 2 or 3 basis points
costs as securities lending transac- * BlackRock, Vanguard, Fidelity, JPMorgan AM, Franklin Templeton, annually from lending out widely
tions increase the number of active Charles Schwab, T Rowe Price, MFS, Putnam and available assets such as large US
BNY Mellon subsidiary Dreyfus
buyers and sellers participating in Source: Finadium stocks.
markets. Less easily available assets, such as
“Securities loans play an integral Charles Jones, a finance professor emerging markets equities that are
part in reducing transaction costs, at Columbia Business School in New also known as “specials”, can earn
providing liquidity to financial mar- York, adds that stricter regulations 20bp or more a year if they are in high
kets and generating income for retire- for securities lending could lead to demand.
ment plans and other long-term asset prices becoming “unhinged” Asset owners can earn significantly
investors,” says Mr Galper. from their fundamental values. more if they are prepared to lend out
securities for an extended period in
arrangements known as term
Regulation “More needs to be done in the proposals in loans.
area of securities lending and cash November Demand for term loans has
‘Transparent, resilient collateral reinvestment to ensure for risen significantly as a result of
sources of financing’ that risks are properly appreciated gathering regulatory changes affecting
and managed,” the IMF said. data on banks, which are now required to
Although many observers believe It called for comprehensive securities hold high levels of government
moves by regulators to impose disclosure requirements to be lending on a debt or cash to be able to meet
stricter rules on securities lending imposed on securities lending global basis from redemption needs in periods of acute
could increase the risk of bubbles activities, adding that it was the end of 2018. market stress.
developing in asset prices, otherwise impossible to understand Mark Carney, the governor of the Duncan Willsher, head of the cus-
influential forces still argue that the the full extent of the risks facing Bank of England and chairman of tody research at Towers Watson, the
practice poses big risks. investors. the FSB (pictured), said that the consultancy, says the increased
The International Monetary Fund Publicly available data on improved gathering of data would demand for term loans has provided
warned in July 2015 that pension securities lending activities remains “help transform securities financing asset owners with opportunities to
funds could create systemic risks to scarce but this is set to change. The markets into more transparent and earn real money from securities lend-
the US financial system if they were Financial Stability Board, the body resilient sources of financing that ing.
to chase returns by engaging in that co-ordinates financial would better serve the needs of the “Some clients might be missing out
securities lending. regulators worldwide, published [global] economy”. on revenue opportunities by not
agreeing to term loans,” he says.
10 | FTfm
Watch out for
emerging market
banana skins
THE LAST WORD
John
Plender
T
he global economic
expansion is so well
advanced that the
investment community
is understandably nerv-
ous, at the start of 2016, about a wide
variety of risks. Geopolitics, cyber
attacks, inflation, excessive debt,
deflation — there is no shortage of
lurking horrors to give professional
investors sleepless nights. Stuff will
undoubtedly happen, as Donald
Rumsfeld, the former US defence sec-
retary, might have put it. Yet I was
interested to see in the recent annual
review of potential banking banana
skins from the Centre for the Study of
Financial Innovation that what bank-
ers and others in the 52-country sur-
vey found most worrying was rela-
tively prosaic: the possibility that the
economic recovery would fail.
One of the interesting things about
that concern is the extent to which it
turns on emerging markets. Despite
having suffered a protracted slow-
More risk is not the answer for defined benefit pension schemes
VIEWPOINT
Jon
Hatchett
T
he claims that UK
defined benefit (DB)
pension schemes are
paying the price for cut-
ting equity holdings
from 61 per cent to 33 per cent after
the financial crisis misses several
points. Most importantly, it could
encourage schemes to take more risk
than they should at a time when
many are already running significant
unhedged risks.
UK DB schemes have more than
£1tn of unhedged interest rate expo-
sure. This is despite the value of
assets being held in bonds nearly tri-
pling over the past decade.
The industry has spent far too
down, emerging markets still
accounted for 60 per cent of global
growth between 2010 and 2014 and
their share of global gross domestic
product last year was over 57 per cent
measured at international purchas-
ing power parity. In 2015 and 2016 the
International Monetary Fund expects
emerging markets to grow at double
the speed of the advanced countries,
notwithstanding the difficulties that
so many of them face.
To make a plausible projection of
global growth, then, it is necessary to
be on top of the emerging markets;
and to make a plausible projection of
emerging market growth you have to
be on top of China, because it
accounts for such a big chunk of the
world economy. There lies one of the
biggest question marks not only for
growth but for financial stability in
the developed world. For as the
events of the last week have
reminded us, market developments
in China spill over to the rest of us. A
smooth rebalancing and slowing of
the Chinese economy is a prerequisite
for continuing stable expansion eve-
rywhere else.
While China’s ability to wrongfoot
global markets is not to be underesti-
mated, I am not convinced it will
cause the global expansion to falter in
much time debating what it “expects”
to happen, and far too little time
focusing on what might happen. It is
noteworthy that the three big posi-
tions taken by most pension schemes
since the start of the millennium have
backfired: equities are at half the
level expected in 2000, interest rates
have increased liabilities by more
than 50 per cent and continued rises
in longevity have added a further
10-15 per cent to that.
Risks have not been paramount in
people’s minds and companies con-
tinue to foot the bill for this oversight.
Companies in the FTSE 350 alone
have paid £250bn to try and plug
funding holes since the start of the
millennium.
Compounding this, the risks that
companies are exposed to in their DB
schemes are asymmetric. They bear
all the costs of downside risks, yet
only get a partial benefit for upside as
surplus gets trapped in pension
schemes. This asymmetry is a further
OPINION
A smooth rebalancing and slowing of the Chinese economy is a
prerequisite for continuing stable expansion elsewhere — Qilai Shen/Bloomberg
a big way. When policymakers in Bei-
jing confronted a bigger than
expected slowdown last year they
damped their enthusiasm for rebal-
ancing the economy away from
excessive investment towards
domestic consumption and returned
to their old ways. Local government
Emerging markets
accounted for 60%
of global growth
between 2010 and 2014
reason for schemes not to take more
risk than they need.
Most DB schemes are now in a situ-
ation or are approaching one where
they are cash flow negative — in other
words, the pensions being paid out
exceed the contributions coming in.
Once schemes are regularly drawing
down, they become forced sellers of
assets.
Being a forced seller of an asset with
a volatile price is unattractive, as dur-
ing a market slump a greater propor-
tion of the asset base needs to be sold
to meet benefits.
Across the whole UK private sector
DB universe, schemes are paying out
around £20bn more per year than
they receive in contributions. Look-
ing at DB schemes in the FTSE 350
specifically, half are already cash flow
negative or soon will be. As such,
investing in assets that will deliver the
income needed to pay today’s and
tomorrow’s pensioners is key.
This cash flow risk should be front
investment in infrastructure and
property was cranked up again, as
was investment in unprofitable basic
industries. Monetary policy was also
loosened — to good effect in the short
term, but in due course there will be a
cost arising from a further wasteful
misallocation of resources. And there
is a cost now for the advanced econo-
mies because investment in global
industries that already suffer from
surplus capacity will depress returns
and thus discourage investment.
As for the rest of the developing
world, it is not just suffering from the
slowdown in China. The Institute of
of mind for those responsible for DB
schemes. Market volatility is an ines-
capable reality. We are only four days
into the new year and already we have
seen a plunge in the Chinese stock
market leading to a global equity
retreat.
£1 tn £20 bn
The amount of The amount UK
unhedged DB schemes are
interest rate paying out more
exposure of per year than
UK DB they receive in
schemes contributions
Retaining a higher allocation to
equities may not be the panacea that
some are claiming. While £1 invested
in UK equities may have nearly dou-
bled in value since the dawn of this
millennium (assuming dividends
were reinvested), the same £1
invested in UK bonds would have
nearly tripled.
Two-thirds of schemes tell us their
FINANCIAL TIMES Monday 11 January 2016
International Finance, a club of global
banks, points out that there is a secu-
lar shift to services (of which China is
part) at the expense of manufactur-
ing. The share of services in emerging
market economies has risen from 45
per cent in the late 1990s to 53 per
cent today, which will contribute to a
slowdown in potential growth, espe-
cially among commodity exporters.
For investors there will of course be
a time to return to emerging markets
that have seen $1tn of capital with-
drawn over the past year. Unpopular-
ity suggests opportunity. Yet as this
column has pointed out before,
emerging markets are not a homoge-
neous group. Still less are the so-
called Brics. Brazil is in political tur-
moil and deep recession; Russia is
crucified by the collapsing oil price;
China is trying to make an extraordi-
narily difficult economic transition;
India is burgeoning. Never have they
had less in common.
Within the emerging market uni-
verse, countries such as India and
Mexico are doing well. Yet the market
knows that. Another inconvenient
truth is that much academic evidence
shows there is no correlation between
countries’ growth rates and stock
market returns. The way to profit
from emerging markets is to choose
ones where valuations are low. No
doubt some people will make money
out of South Africa, Turkey and Rus-
sia in due course. But others may lose
a fortune first. The art of timing in
such markets is given to few.
To return to where we began, my
worry for markets this year relates
more to geopolitical risk than purely
economic headwinds. But after a
rocky first week of the year pessi-
mism is probably being overdone.
John Plender is a columnist for the FT
biggest challenge is having a clear
understanding of their scheme’s
risks, and knowing when to de-risk.
While companies and trustees
need to learn from the experience of
the past 15 years, pension funds
should hold their risk-reduction
nerve. Talking about what could have
been is a seductive but poisonous
chalice.
While some organisations may
choose to use their pension vehicles
to take capital markets risk, for the
majority taking more risk than is nec-
essary simply does not stack up. Com-
panies and trustees should assess the
strength of view they have in market
positions and invest accordingly.
Reducing this to a simple bonds ver-
sus equities zero sum game misses
the complexity of the problem that
cash flow negative schemes face
today.
Jon Hatchett is a partner at Hymans
Robertson, the pensions consultancy
12 | FTfm FINANCIAL TIMES Monday 11 January 2016

FTfm

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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
Axiom Obligataire € 1766.01 - -6.60 0.00

ACPI Global UCITS Funds Plc (IRL) Artisan Partners Global Funds PLC (IRL) Axiom Obligataire £ 1778.84 - -6.88 0.00 Cohen & Steers SICAV (LUX)
www.acpishard.com Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland Regulated
Regulated Tel: 44 (0) 207 766 7130 European Real Estate Securities € 22.9146 - -0.5578 1.58
ACPI Emerging Mkts FI UCITS Fund USD A $ 105.52 - -0.17 0.00 FCA Recognised
BLME Asset Management (LUX) Europ.RealEstate Sec. IX € 30.7319 - -0.7481 0.00
Artisan Partners Global Funds plc
ACPI Global Credit UCITS Funds USD A $ 13.95 - -0.03 0.00 BLME Sharia'a Umbrella Fund SICAV SIF
Artisan Emerging Markets I USD Acc $ 6.23 - -0.18 0.00
Regulated Gbl Listed Infrastructure I $ 9.3927 - -0.1478 -
ACPI Global Fixed Income UCITS Fund USD A $ 152.49 - -0.03 0.00 Artisan Global Equity Fund Class I USD Acc $ 13.73 - -0.33 0.00 Income Fund - Share Class A Acc $ 1134.33 - -0.89 0.00 Brown Advisory Funds plc (IRL) Castle Fund Administrators Limited (GIB)
http://www.brownadvisory.com Tel: 020 3301 8130 932 Europort, Gibraltar GX11 1AA Gbl Listed Infrastructure IX $ 9.4335 - -0.1484 -
Q ACPI India Fixed Income UCITS Fund USD A $ 9.91 - -0.01 - Artisan Global Opportunities I USD Acc $ 11.56 - -0.25 0.00 Income Fund - Share Class G Acc £ 1074.97 - -0.86 0.00 FCA Recognised Tel: +350 200 40466
Brown Advisory US Equity Growth Fund USD B $ 21.37 - -0.58 0.00 www.castlefundadministrators.com Gbl RealEstate Sec. I $ 10.5508 - -0.1844 1.40
ACPI India Fixed Income UCITS Fund USD A3 $ 84.76 - -0.05 0.00 Artisan Global Value Fund Class I USD Acc $ 14.92 - -0.29 0.00 Gl Sukuk Fund - Share Class A Acc $ 1222.53 - -2.32 0.00 Other International Funds
Brown Advisory US Equity Value Fund USD B $ 10.75 - -0.28 0.98 Gbl RealEstate Sec. IX $ 12.5621 - -0.2194 0.00
Inspirato Fund No. 2 PCC Limited
ACPI International Bond UCITS Fund USD A $ 17.83 - 0.03 0.00 Artisan US Value Equity Fund Class I USD Acc $ 9.77 - -0.20 0.00 Gl Sukuk Fund - Share class B Acc £ 1091.21 1091.21 -2.08 0.00
Inspirato Fund No. 2 PCC Limited - Cell A £ 40475.64 - -25.08 0.00
Brown Advisory US Flexible Equity SRI Fund USD B $ 13.63 - -0.34 0.39
Inspirato Fund No. 2 PCC Limited - Cell B £ 100228.10 - -256.25 0.00
Brown Advisory American Fund USD B $ 14.44 - -0.37 0.34
ACPI Select UCITS Funds PLC (IRL) Ashmore Sicav (LUX) Bank of America Cap Mgmt (Ireland) Ltd (IRL)
Regulated Regulated Inspirato Fund No. 2 PCC Limited - Cell C $ 102580.23 - 16.17 0.00
2 rue Albert Borschette L-1246 Luxembourg Brown Advisory US Smaller Companies Fund USD B $ 16.34 - -0.45 0.00
ACPI Balanced UCITS Fund USD Retail $ 13.53 - -0.11 0.00 FCA Recognised Global Liquidity USD $ 1.00 - 0.00 0.58
Inspirato Fund No. 2 PCC Limited - Cell D £ 107321.36 - 111.33 0.00
Ashmore SICAV Emerging Market Debt Fund $ 89.27 - -0.41 9.02 Brown Advisory US Small Cap Blend Fund USD B $ 11.40 - -0.29 0.00
ACPI Balanced UCITS Fund EUR Retail € 10.20 - -0.08 0.00
The Global Financial Infrastructure Fund £ 99607.39 - -392.61 -
Ashmore SICAV Emerging Market Frontier Equity Fund $ 135.63 - -1.96 0.98 Brown Advisory US Flexible Equity Fund USD B $ 10.18 - -0.26 0.00
ACPI Balanced UCITS Fund GBP Retail £ 10.32 - -0.09 0.00 Barclays Investment Funds (CI) Ltd (JER) Coronation Fund Managers
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 The Global Technology Infrastructure Fund £ 99489.30 - -510.70 - +44 (0)20 7389 8840 www.coronation.com
Ashmore SICAV Emerging Market Total Return Fund $ 76.03 - -0.20 6.41 Brown Advisory Global Leaders Fund $ 9.48 - -0.23 -
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - FCA Recognised Enquiries: +27 (21) 680 2837/2457 coronationfunds@coronation.co.za
Bond Funds The London, Key Cities & Counties Social Infrastructure Fund £ 99369.30 - -630.70 -
Ashmore SICAV Global Small Cap Equity Fund $ 121.44 - -0.93 0.00 Other International Funds
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - Sterling Bond F £ 0.46 - 0.00 3.34 Global Equity Fund of Funds - Class A $ 13.68 - -0.10 0.00
Ashmore SICAV Local Currency Fund $ 79.48 - 0.16 0.32
CG Asset Management Limited (IRL)
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland Cedar Rock Capital Limited (IRL) Global Emerging Markets - Class A $ 10.83 - -0.40 0.00
EM Mkts Corp.Debt USD F $ 84.13 - -0.44 9.18 00 353 1 434 5098 Regulated
ACPI Horizon UCITS Fund $ 12.71 - -0.08 0.00 Baring International Fd Mgrs (Ireland) (IRL)
FCA Recognised All Africa $ 13.43 - 0.10 0.00
Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004 Cedar Rock Capital Fd Plc $ 369.41 - 7.37 0.00
EM Mkts Loc.Ccy Bd USD F $ 72.49 - -0.06 4.41 Capital Gearing Portfolio Fund Plc £ 27146.61 27146.61 130.92 0.61
FCA Recognised Africa Frontiers $ 15.61 - 0.11 0.00
Cedar Rock Capital Fd Plc £ 393.49 - 17.56 0.00
ASEAN Frontiers A GBP Inc £ 108.44 - 0.43 0.58 CG Portfolio Fund Plc
Real Return Cls A £ 169.30 169.30 2.05 1.74 Cedar Rock Capital Fd Plc € 354.01 - 12.24 0.00
Asia Growth A GBP Inc H £ 44.30 - 0.21 0.00
Dollar Fund Cls D £ 131.75 131.75 1.83 1.62
Australia A GBP Inc £ 67.00 - -0.50 1.82
Capital Value Fund Cls V £ 131.57 131.57 0.63 0.27 Charles Schwab Worldwide Funds Plc (IRL)
Baring China Bond Fund $ 9.59 - 0.00 0.00 Regulated
Algebris Investments (IRL) Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01
Baring Emerging Markets Corporate Debt Fund $ 9.13 - -0.02 0.00
Regulated Aspect Capital Ltd (UK)

Asset Management
Algebris Financial Credit Fund - Class I EUR € 132.80 - 0.46 0.00 Other International Funds Baring European Opportunities Fund Class A EUR Acc € 13.34 - 0.23 0.00 Crèdit Andorrà Asset Management (LUX)
Chartered Asset Management Pte Ltd
Ass
Aspect Diversified USD $ 432.73 - -2.09 0.00 www.creditandorra.com
Algebris Financial Income Fund - Class I EUR € 114.89 - -1.50 0.00 Baring Global Mining Fund - Class A GBP Inc £ 3.30 - 0.00 0.65 Other International Funds FCA Recognised
Aspect Diversified EUR € 259.99 - -1.37 - CAM-GTF Limited $ 280040.86 280040.86 914.90 0.00 Crediinvest SICAV Money Market Eur I € 11.21 - 0.00 0.00
Algebris Financial Equity Fund - Class B EUR € 92.72 - -1.44 - Dynamic Emerging Markets A GBP Acc F £ 8.36 - 0.00 0.00
Aspect Diversified GBP £ 133.06 - -0.68 0.00 CAM GTi Limited $ 612.98 - -36.72 0.00 Crediinvest SICAV Money Market Usd A $ 10.03 - 0.00 0.00
Algebris Asset Allocation Fund - Class B EUR € 97.61 - -0.39 - Eastern Europe A GBP Inc £ 38.07 - 0.00 1.84 Candriam Investors Group (LUX)
Aspect Diversified CHF SFr 124.16 - -0.70 0.00 FCA Recognised Raffles-Asia Investment Company $ 1.55 1.55 -0.11 5.55 Crediinvest SICAV Fixed Income Eur € 10.49 - -0.05 0.00
Emerging Mkt Debt LC A GBP Hedged Inc £ 6.80 - 0.00 6.72
Candriam Eqts L Australia Cap A$ 936.09 - -3.46 0.00
Alken Asset Management (LUX) Aspect Diversified Trends USD $ 129.16 - 0.32 0.00 Crediinvest SICAV Fixed Income Usd $ 10.36 - -0.02 0.00
Emerging Opportunities A GBP Inc H £ 17.83 - -0.15 0.00
61 Conduit Street, London, W1S 2GB Candriam Eqts L Sust World Cap € 270.21 - -7.91 0.00
Aspect Diversified Trends EUR € 129.32 - 0.31 0.00 Crediinvest SICAV Spanish Value € 236.80 - -3.42 0.00
www.alken-am.com Glb Emerging Markets A GBP Inc H £ 17.75 - 0.02 0.00
Candriam Bds Euro Cap € 1130.57 - -3.33 0.00
Regulated Aspect Diversified Trends GBP £ 134.20 - 0.33 0.00 Crediinvest SICAV International Value € 198.60 - -6.01 0.00
Alken European Opportunities € 200.39 - -4.70 0.00 Glb Resources A GBP Inc H £ 9.98 - -0.01 0.38
Candriam Bds Euro Infl Linked Cap € 140.84 - -0.38 0.00
Crediinvest SICAV Big Cap Value € 14.69 - -0.34 0.00
Alken European Opportunities £ 119.21 - -1.52 0.00 High Yield Bond A GBP Hedged Inc H £ 6.08 - -0.01 7.21
Candriam Qt-Eqts Europe Cap € 2193.68 - -48.53 0.00
Atlantas Sicav (LUX) Crediinvest SICAV US American Value $ 17.10 - -0.38 0.00
Alken Absolute Return € 140.84 - -1.55 0.00 Regulated Hong Kong China A GBP Inc £ 554.81 - 2.49 0.58
Candriam Qt-Eqts USA Cap $ 2198.09 - -52.98 0.00 Cheyne Capital Management (UK) LLP (IRL)
American Dynamic $ 3338.85 - -68.10 0.00 Regulated Crediinvest SICAV Sustainability € 14.96 - -0.29 0.00
Alken Absolute Return £ 114.38 - -1.29 0.00 India Fund - Class A GBP Inc £ 14.14 - 0.12 0.00 Cheyne Convertibles Absolute Return Fund € 1336.89 - -9.81 0.00
American One $ 3144.75 - -47.90 0.00
Alken Small Cap € 182.44 - -3.38 0.00 Latin America A USD Inc H $ 23.16 - -0.24 0.24 Candriam Investors Group (BE) Cheyne Global Credit Fund € 116.19 - -0.56 0.00
Bond Global € 1404.32 - 6.08 0.00 FCA Recognised Daiwa SB Investments (UK) Ltd (LUX)
MENA A GBP Inc F * £ 11.63 - -0.29 0.64 Candriam Sust Euro Bonds Cap € 358.61 - -0.96 0.00 Cheyne European Mid Cap Fund € 1122.06 - -13.97 0.00 5 King William Street, London EC4N 7DA
Eurocroissance € 873.95 - -21.25 0.00 www.daiwasbi.co.uk 0207 597 7000
Amundi Funds (LUX)
Candriam Sust North America Cap $ 37.11 - -0.89 0.00 Regulated
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 Far East $ 660.71 - -18.97 0.00
www.amundi-funds.com Baring International Fd Mgrs (Ireland) (IRL)
Cheyne Capital Management (UK) LLP
DSBI Japan Equity Fundamental Active I JPY ¥ 11652.69 11652.69 -95.46 0.00
Regulated Candriam Sust World Cap € 25.04 - -0.74 0.00
FCA Recognised Other International Funds
China A-Share A GBP Inc £ 5.70 - 0.14 0.00 DSBI Japan Equity Fundamental Active I GBP £ 115.42 115.42 -0.98 0.00
Bd. Euro Corporate AE Class - R - EUR € 18.44 - -0.06 0.00 Cheyne European Event Driven Fund € 145.83 - -0.11 0.00
Atlantis Investment Management Ltd (IRL)
DSBI Japan Equity Fundamental Active A EUR € 110.73 116.27 -0.96 0.00
Bd. Global AU Class - R - USD $ 25.34 - 0.00 0.00 2nd Floor, 13 St Swithin's Lane, London EC4N 8AL Candriam Investors Group Cheyne Real Estate Credit Holdings Fund £ 161.86 - 0.94 0.00
www.atlantis-investmenet.com, Tel: 0207 877 3377 Other International Funds
Barings (Luxembourg) (LUX)
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 Regulated Candriam Eqts L Emerging Mkts Cap € 594.64 - -20.46 0.00 Cheyne Real Estate Credit Holdings Fund III £ 111.98 - 0.56 0.00
FCA Recognised
Atlantis China Fund $ 6.44 - 0.00 0.00 DAVIS Funds SICAV (LUX)
Eq. Emerging World AU Class - R - USD $ 74.41 - -2.06 0.00 Russia A GBP Inc F £ 24.28 - -0.41 0.00
Candriam Eqts L Euro 50 Cap € 507.31 - -9.03 0.00 Cheyne Real Estate Debt Fund Class A1 £ 131.65 - 0.83 0.00 Regulated
Atlantis China Healthcare Fund $ 1.94 - 0.01 0.00 Davis Value A $ 37.44 - -1.02 0.00
Eq. Greater China AU Class - R - USD $ 511.59 - -16.13 0.00 Candriam Eqts L Europe Cap € 909.76 - -21.76 0.00 Cheyne Total Return Credit Fund - December 2017 Class $ 173.12 - -9.06 0.00
Atlantis Japan Opportunities Fund $ 2.54 - -0.05 0.00 BlackRock (JER) Davis Global A $ 26.31 - -0.78 0.00
Eq. Latin America AU Class - R - USD $ 283.81 - -8.02 0.00 Regulated Candriam Eqts L Japan Cap ¥ 19946.00 - -139.00 0.00 Cheyne Total Return Credit Fund 2020 $ 103.39 - 0.01 -
Atlantis Asian Fund $ 6.18 - 0.02 0.00 BlackRock UK Property £ 41.67 - 0.46 3.26
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.59 - -0.08 0.00 Candriam Bonds Credit Opportunities € 189.64 - -0.16 0.00
Blackrock UK Long Lease £ 1079.95 - 8.43 0.00 Clareville Capital Partners LLP
Candriam Bds Euro Conv. Classic Cap € 3398.39 - -0.64 0.00
Other International Funds

AXIOM
The Antares European Fund Limited BLK Intl Gold & General $ 4.06 4.28 0.13 0.00
Candriam Bds Euro Corp ExFin Cap € 161.57 - -0.40 0.00 Pegasus Fund Ltd A-1 GBP £ 53.68 - -1.64 0.00
Other International
AEF Ltd Usd (Est) $ 681.65 - 0.02 - Candriam Bds Euro Gov.Cl.Cap € 2268.30 - -7.98 0.00 Pegasus Fund Ltd A-2 GBP £ 136.12 - -4.17 0.00
ALTERNATIVE INVESTMENTS
BONHOTE
AEF Ltd Eur (Est) € 683.82 - 0.00 0.00 Other International Funds Candriam Bds Euro High Yield Cap € 993.74 - -2.26 0.00 Pegasus Fund Ltd A-1 EUR € 22.96 - -0.68 0.00 Deutsche Asset Management UK Ltd. (LUX)
Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6649.00 - -46.00 2.28 Tel: + 44 207 545 9070 www.dws.co.uk
Axiom Alternative Investments (FRA) Candriam Bds Euro High Yield R Cap € 110.44 - -0.25 0.00 Pegasus Fund Ltd A-1 USD $ 24.56 - -0.75 0.00 FCA Recognised
1 Conduit Street - 4th floor - London W1S 2XA Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9920.00 - 129.00 0.92
Arisaig Partners Candriam Bds Euro Long Term Cap € 7883.28 - -44.67 0.00 Pegasus Fund Ltd A-2 USD $ 133.55 - -4.11 0.00
Deutsche Invest I Africa GBP RD1 Inc £ 115.13 115.13 -1.82 1.11
www.axiom-ai.com Tel: +44 330 822 0374
Other International Funds
Regulated Deutsche Invest I Chinese Eq.GBP RD Inc £ 99.28 99.28 -3.69 0.75
Arisaig Africa Consumer Fund Limited $ 13.45 - -0.03 0.00 Candriam Bds Euro Sh.Term Cap € 2077.96 - -1.13 0.00 Pegasus Fund Ltd B-1 GBP £ 192.46 - -0.16 0.00
Axiom Contingent Capital € 1024.96 - -3.60 -
Braemar Group PCC Limited (GSY) Deutsche Invest I Conv.GBP RDH Inc £ 165.83 165.83 -1.20 0.63
Arisaig Asia Consumer Fund Limited $ 61.95 - -1.50 0.00 Regulated Candriam Bds International Cap € 987.77 - 0.12 0.00 Pegasus Fund Ltd B-2 GBP £ 147.55 - -0.13 0.00
Axiom Contingent Capital £ 1029.59 - -3.62 -
UK Agricultural Class A £ 1.25 - -0.02 0.00 Deutsche Invest I Global Agrib.GBP LD DS Inc £ 83.42 87.81 -1.79 0.31
Arisaig Global Emerging Markets Consumer UCITS € 11.49 - -0.34 0.00 Candriam Bds USD Cap $ 929.04 - 0.95 0.00 Pegasus Fund Ltd B-1 EUR € 161.47 - -0.14 0.00
Axiom Equity $ 821.79 - -20.20 -
UK Agricultural Class B £ 1.37 - -0.02 0.00 Deutsche Invest I Top Asia GBP RD Inc £ 147.29 147.29 -2.98 1.15
Arisaig Global Emerging Markets Consumer UCITS STG £ 10.90 - -0.20 0.00 Candriam Total Return Bond Cap € 131.10 - -0.46 0.00 Pegasus Fund Ltd B-1 USD $ 172.66 - -0.16 0.00
Axiom Equity € 863.58 - -21.21 0.00
Student Accom Class B £ 0.55 - -0.17 0.00
Arisaig Latin America Consumer Fund $ 19.24 - -0.32 0.00
Axiom Obligataire $ 1770.56 - -6.60 0.00
FINANCIAL TIMES Monday 11 January 2016 FTfm | 13

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
Invesco Emerging Mkt Quant.Eq. A $ 8.27 - 0.02 0.00 Strategy Growth-CHF/B SFr 88.54 - -1.43 0.00

Equinox Fund Mgmt (Guernsey) Limited (GSY) Genesis Asset Managers LLP Invesco Energy A $ 14.63 - -0.23 0.00 Strategy Growth-EUR € 111.17 - -1.86 0.00 MFS Investment Funds (LUX)
Regulated Other International Funds FCA Recognised
Equinox Russian Opportunities Fund Limited $ 118.76 - -1.14 0.00 Emerging Mkts NAV £ 4.87 - -0.11 0.00 Invesco Euro Corporate Bond Fund (A) € 16.95 - -0.01 0.00 Strategy Inc-CHF/B SFr 117.27 - -0.73 0.00 Blend.Research Gb.Eq.Fd. € 98.18 - -2.90 -

Invesco Euro Inflation Linked Bond A € 15.52 - 0.03 0.00 Strategy Inc-EUR/B € 157.03 - -1.00 0.00 Blend.Research Gb.Eq.Fd. £ 98.09 - -1.85 -

Euronova Asset Management UK LLP (CYM) HPB Assurance Ltd Invesco Euro Reserve A € 322.67 - 0.00 0.00 Strategy Inc-USD/B $ 143.65 - -0.75 0.00 Blend.Research U.S.Core Eq.Fd. ¥ 9544.00 - -269.00 -
Dodge & Cox Worldwide Funds (IRL) Regulated Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490
6 Duke Street,St.James,London SW1Y 6BN Smaller Cos Cls One Shares (Est) € 36.20 - 0.38 0.00 International Insurances Invesco Euro Bond A € 7.12 - -0.01 0.00 Blend.Research Gb.Eq.Fd. $ 93.89 - -2.04 -
www.dodgeandcox.worldwide.com 020 3713 7664 Holiday Property Bond Ser 1 £ 0.50 - 0.01 0.00
FCA Recognised Smaller Cos Cls Two Shares (Est) € 25.22 - 0.24 0.00 Invesco European Growth Equity A € 23.66 - 0.23 0.00 Em.Mk.Eq.Fund Euro € 103.03 - -3.60 0.00
Dodge & Cox Worldwide Funds plc - Global Bond Fund Holiday Property Bond Ser 2 £ 0.60 - 0.01 0.00
Smaller Cos Cls Three Shares (Est) € 12.71 - 0.12 0.00 Invesco Global Absolute Return Fund A Class € 11.78 - 0.05 0.00 Em.Mk.Eq.Fund Sterling £ 90.09 - -2.18 0.00
EUR Accumulating Class € 11.55 - -0.20 0.00
Smaller Cos Cls Four Shares (Est) € 16.32 - 0.15 0.00 Invesco Global Bond A Inc $ 5.48 - -0.01 0.75 Em.Mk.Eq.Fd.US Dollar $ 85.24 - -2.31 0.00
EUR Accumulating Class (H) € 9.03 - -0.03 0.00 Haussmann
Other International Funds Invesco Global Conservative Fund 90 (EUR) A € 11.83 - -0.03 0.00 Gb.Conc.Eq.Fd.Euro € 266.61 - -6.96 0.00
EUR Distributing Class € 10.94 - -0.19 3.62 Kames Capital VCIC (IRL)
Haussmann Cls A $ 2671.56 - -36.15 0.00
Invesco Global Equity Income Fund A $ 55.56 - 0.31 0.00 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 Gb.Conc.Eq.Fd.Sterl.UK T £ 165.89 - -2.55 0.00
EUR Distributing Class (H) € 8.55 - -0.03 3.71
Haussmann Cls C € 2336.81 - -33.24 0.00 FCA Recognised
Invesco Global Inc Real Estate Sec A dist $ 8.92 - -0.07 2.24 Absolute Return Bond B GBP Acc 1081.96 - -0.19 - Gb.Conc.Eq.Fd.Sterling £ 251.03 - -3.88 0.00
GBP Distributing Class £ 9.96 - -0.03 3.57
Haussmann Cls D SFr 1236.49 - -18.03 0.00
Invesco Global Inv Grd Corp Bond A Dist $ 11.84 - -0.01 3.04 Eq Market Neutral B Acc 1028.47 - 2.13 - Gb.Conc.Eq.Fd.US $ 182.87 - -3.34 0.00
GBP Distributing Class (H) £ 8.63 - -0.03 3.71
Invesco Global Leisure A $ 34.16 - 0.06 0.00 Eq Market Neutral Plus B Acc 1048.90 - 4.32 - Gb.Eq.Hdg Fd.Euro IRE T € 172.57 - -4.16 0.00
USD Accumulating Class $ 9.11 - -0.03 0.00 Eurobank Fund Management Company (Luxembourg) S.A. Heartwood Wealth Management Limited (IRL)
Regulated Regulated Invesco Global Smaller Comp Eq Fd A $ 54.46 - -0.17 0.00 Gb.Eq.Euro Hdg Fd. € 244.51 - -5.89 0.00
Dodge & Cox Worldwide Funds plc-Global Stock Fund High Yield Global Bond A GBP Inc 514.00 - -1.28 5.26
(LF) Absolute Return € 1.32 - 0.00 0.00 Heartwood Caut Multi Asset B Acc 137.36 - -0.76 0.00
USD Accumulating Share Class $ 14.58 - -0.39 0.00 Invesco Global Structured Equity A $ 44.78 - 0.19 0.74 Gb.Eq.Fund Euro € 268.80 - -7.73 0.00
High Yield Global Bond B GBP Inc 1068.26 - -2.63 5.26
(LF) Eq Emerging Europe € 0.64 - -0.03 0.00
GBP Accumulating Share Class £ 16.40 - -0.43 0.00 Invesco Global Total Ret.(EUR) Bond Fund A € 13.11 - 0.00 0.00 Gb.Eq. Fd Euro IRE T € 170.10 - -4.89 0.00
Investment Grade Global Bd A GBP Inc 553.86 - -0.26 2.34
(LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00
GBP Distributing Share class £ 11.93 - -0.31 0.98 Invesco Gold & Precious Metals A $ 3.70 - 0.12 0.00 Gb.Eq.Fd.Sterling UK T £ 202.24 - -3.65 0.00
Kames Global Equity Income B GBP Acc 1163.26 - -9.08 -
(LF) Eq Mena Fund € 12.55 - -0.39 0.00
EUR Accumulating Share Class € 20.02 - -0.82 0.00 Invesco Greater China Equity A $ 40.85 - 0.16 0.00 Gb.Eq.Fd.US Dollar $ 291.06 - -6.09 0.00
Kames Global Equity Income B GBP Inc 1108.87 - -8.64 -
(LF) Greek Government Bond € 17.56 - -0.43 -
Dodge & Cox Worldwide Funds plc-International Stock Fund Invesco India Equity A $ 50.77 - 0.58 0.00 Gb.Eq.Fund Sterling £ 199.86 - -3.61 0.00
Strategic Global Bond A GBP Inc 1088.07 - -1.09 0.71
USD Accumulating Share Class $ 12.32 - -0.33 0.00 (LF) Greek Corporate Bond € 11.87 - -0.08 -
Hermes Investment Funds Plc (IRL) Invesco Japanese Equity Adv Fd A ¥ 3629.00 - -26.00 0.00 Strategic Global Bond B GBP Inc 617.68 - -0.62 1.21 Gb.Val.Ex-Jap.Fd.USD $ 110.67 - -2.39 0.00
EUR Accumulating Share Class € 13.27 - -0.53 0.00 (LF) FOF Dynamic Fixed Inc € 11.70 - -0.10 0.00 Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
FCA Recognised Invesco Japanese Value Eq Fd A ¥ 1214.00 - -11.00 0.00 Gb.Val.Ex-Japan Fd.Yen ¥ 12853.00 - -337.00 0.00
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund (LF) FOF Real Estate € 16.55 - -0.45 0.00 Hermes Abs Return Credit Fund Class F Acc £ £ 1.04 1.04 0.00 -
USD Accumulating Share Class $ 16.80 - -0.43 0.00 Invesco Latin American Equity A $ 5.11 - -0.14 0.00 LF Funds (Banque Libano-Francaise Group) (LUX) Gb.Val.Fd. Euro € 126.80 - -3.57 0.00
Hermes Abs Return Credit Fund Class R Acc € € 2.01 2.01 -0.02 - www.eblf.com - lffunds@eblf.com
GBP Accumulating Share Class £ 17.87 - -0.45 0.00 Invesco Nippon Small/Mid Cap Equity A ¥ 997.00 - -15.00 0.00 Regulated Gb.Val.Fd.Sterling £ 114.84 - -2.00 0.00
FIL Fund Management (LUX)
Hermes Active UK Inflation Fund Class F Acc £ 1.28 1.28 0.00 0.00 LF Total Return Bond Fund - Class A $ 116.77 - 0.15 0.00
GBP Distributing Share Class £ 11.37 - -0.28 0.61 2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg Invesco Pan European Equity A EUR Cap NAV € 17.88 - 0.20 0.00 Gb.Val.Fd.USD $ 99.02 - -2.00 0.00
Phone: 800 22 089, 800 22 088 Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.51 1.51 0.00 0.00 LF Total Return Bond Fund - Class D $ 114.78 - 0.15 0.00
EUR Accumulating Share Class € 19.93 - -0.79 0.00 Regulated Invesco Pan European High Income Fd A € 13.56 - 0.01 2.48 Low Volatility Gb.Eq.Fd.Euro € 102.20 - -2.24 -
China Consumer A-GBP £ 13.83 - -0.44 0.00 Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.21 3.21 0.01 0.00
Invesco Pan European Small Cap Equity A € 22.18 - 0.15 0.00 Low Volatility Gb.Eq.Fd.Sterl £ 102.10 - -1.16 -
China Focus A-GBP £ 4.04 - -0.14 0.69 Hermes Global Emerging Markets Fund Class F Acc £ 1.12 1.12 0.00 0.00 Lloyds Investment Fund Managers Limited (1000)F (JER)
Invesco Pan European Structured Equity A € 16.72 - 0.16 0.00 PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 Low Volatility Gb.Eq.Fd.USD $ 97.73 - -1.38 -
Global Financial Services A-GBP £ 0.44 - 0.00 0.11 Hermes Global Emerging Markets Fund Class R Acc € 2.78 2.78 -0.01 0.00 Other International Funds
Invesco UK Eqty Income A £ 31.28 - 0.03 0.00 Low Volatility Gb.Eq.Fd.Yen ¥ 9003.00 - -169.00 -
Lloydstrust Gilt £ 12.1300xd - -0.1000 2.36
Global Health Care A-GBP £ 0.57 - 0.00 0.00 Hermes Global Equity Fund Class F Acc £ 1.47 1.47 -0.02 0.00
Invesco UK Investment Grade Bond A £ 0.98 - 0.00 2.89
Lloyds Investment Funds Limited
Global Industrials A-GBP £ 0.61 - -0.01 0.00 Hermes Global Equity Fund Class R Acc € 3.78 3.78 -0.05 0.00 Euro High Income € 1.5980xd - -0.0030 3.04 MFS Meridian Funds SICAV (LUX)
Invesco US Structured Equity A $ 20.23 - 0.14 0.00
Dragon Capital Group Regulated

Asset Management
Global Inflation-Linked Bd A-GBP-Hdg £ 1.15 - 0.00 0.56 Hermes Global ESG Equity Fund Class F Acc £ 1.14 1.14 -0.01 0.00 European £ 7.2770 - 0.1220 1.41
c/o 1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam Invesco US Value Eq Fd A $ 28.88 - -0.20 0.00 Absolute Return A1 € 19.80 - -0.15 0.00
Fund information, dealing and administration: funds@dragoncapital.com
Other International Funds
Global Real Asset Securities £ 1.32 - -0.02 0.00 Hermes Global High Yield Bond Fund Class F Acc £ 1.06 1.06 0.01 0.00
Invesco USD Reserve A Asset Management
$ 87.02 - 0.00 0.00 High Income £ 0.8569xd - -0.0035 4.99 Asia ex-Japan A1 Asset Management $ 20.93 - -0.61 0.00

Vietnam Enterprise Inv. (VEIL) NAV $ 3.53 - -0.06 0.00 Global Technology A-GBP £ 0.26 - 0.00 0.00 Hermes Global High Yield Bond Fund Class R Acc € 2.70 2.70 -0.02 0.00 International £ 3.8050 - -0.0240 1.30 Bond A1 $ 10.33 - 0.00 0.00
Global Telecomms A-GBP £ 0.28 - 0.00 1.15 Hermes Global Small Cap Fund Class F Acc £ £ 0.96 0.96 -0.01 -
Vietnam Growth Fund (VGF) NAV $ 23.26 - 0.42 0.00 Invesco Global Asset Management Ltd (IRL) North American £ 15.0900 - -0.3600 0.22 China Equity Fd A1 $ 9.28 - -0.01 0.00
Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
Vietnam Property Fund (VPF) NAV $ 0.92 - 0.11 0.00 India Focus A-GBP £ 4.28 - -0.06 0.00 Hermes Global Small Cap Fund Class R Acc € € 1.85 1.85 -0.02 - Sterling Bond £ 1.4520xd - -0.0070 3.62
FCA Recognised Continental European Eqty A1 € 16.56 - -0.38 0.00
Latin America A-GBP £ 1.24 - -0.03 0.67 Hermes Multi Asset Inflation Fund Class F GBP Acc £ 0.97 0.97 0.00 0.00 Invesco Stlg Bd A QD F £ 2.59 - 0.00 3.34
UK £ 6.1360 - 0.1230 1.79 Emer Mkts Debt Lo Curr Fd A1 $ 10.46 - -0.01 0.00
DSM Capital Partners Funds (LUX) Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.01 1.01 0.00 0.00 Invesco Asian Equity A $ 5.95 - -0.05 0.53
Lloyds Gilt Fund Limited Emerging Markets Debt A1 $ 32.45 - -0.07 0.00
www.dsmsicav.com
Findlay Park Funds Plc (IRL) Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.27 1.27 0.01 0.00 Invesco ASEAN Equity A $ 83.59 - 0.24 0.29 Lloyds Gilt Fund Quarterly Share £ 1.2650xd - -0.0090 1.87
Regulated Emerging Markets Eq.A1 $ 9.39 - -0.27 0.00
30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900
Global Growth I2 Acc € 131.57 - -4.24 0.00 Invesco Bond A $ 26.84 - -0.03 1.99 Monthly Share £ 1.2190xd - -0.0090 1.87
FCA Recognised Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.23 1.23 0.01 1.30
European Concentrated A1 € 16.23 - -0.44 0.00
Global Growth I1 Eur € 98.39 - -3.17 - American Fund USD Class $ 76.93 - -1.47 0.00
Invesco Continental Eurp Small Cap Eqty A $ 192.73 - 0.79 0.00 Lloyds Money Fund Limited
Hermes Sourcecap EU Alpha Fund Class R Acc € 3.01 3.01 0.03 0.00
Sterling Class £ 52.6190 - 0.0000 0.12 European Core Eq A1 € 29.68 - -0.82 0.00
American Fund GBP Hedged £ 41.92 - -0.80 0.00
Hermes Sourcecap EX UK Fund Class F Acc £ 1.34 1.34 0.01 0.00 Invesco Emerging Markets Equity A $ 32.35 - -0.23 0.00
Lloyds Multi Strategy Fund Limited European Res.A1 € 30.59 - -0.89 0.00
Edinburgh Partners Limited (IRL) American Fund GBP Unhedged £ 52.62 - -1.15 -
27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143 Hermes Sourcecap EX UK Fund Class R Acc € 3.09 3.09 0.02 0.00 Invesco Emerging Markets Bond A $ 20.31 - -0.02 4.66 Conservative Strategy £ 1.0940 - -0.0060 1.97
European Smaller Companies A1 € 49.98 - -1.33 0.00
Dealing - Fax only - +353 1 434 5230 Latin American Fund USD Class $ 10.28 - -0.28 0.00
Hermes UK Small & Mid Cap Fund Class F Acc £ 1.69 1.69 0.01 0.00 Invesco Continental European Equity A € 8.26 - 0.08 0.20 Growth Strategy £ 1.4530 - -0.0180 1.32
FCA Recognised European Value A1 € 34.51 - -0.98 0.00
Latin American Fund GBP Unhedged £ 7.14 - -0.21 -
Edinburgh Partners Opportunities Fund PLC Hermes UK Small & Mid Cap Fund Class R Acc € 4.97 4.97 0.05 0.00 Invesco Gilt A £ 15.00 - -0.07 1.39 Aggressive Strategy £ 1.7520 - -0.0320 0.00
European Opportunities I EUR € 2.34 - -0.06 2.30 Global Conc.A1 $ 34.14 - -0.57 0.00
Hermes US All Cap Equity Class F Stg £ Acc £ 0.97 0.97 -0.02 - Invesco Global Small Cap Equity A NAV $ 112.68 - -0.45 0.00 Global USD Growth Strategy $ 1.3080 - -0.0280 0.00
European Opportunities I GBP £ 1.73 - -0.03 2.46 Foord Asset Management Global Credit Fund $ 10.23 - 0.02 0.00
Other International Funds Hermes US All Cap Equity Class R € Acc € 1.86 1.86 -0.05 - Invesco Global High Income A NAV $ 11.69 - -0.04 6.06 Dealing Daily
European Opportunities I USD $ 2.54 - -0.05 2.08 Global Energy Fund A1 $ 11.24 - -0.23 0.00
Foord International Trust $ 33.60 - -0.42 0.00
Hermes US SMID Equity Fund Class F Acc £ 1.55 1.55 -0.05 0.00 Invesco Gbl R/Est Secs A GBP F F £ 7.86 - -0.12 0.88
European Opportunities A EUR € 2.28 - -0.06 1.60 Foord Global Equity Fund_Class B $ 11.75 - -0.30 0.00 Lohengrin Management Ltd (BAH) Global Equity A1 $ 42.24 - -0.79 0.00
Hermes US SMID Equity Fund Class R Acc € 3.26 3.26 -0.08 0.00 Invesco Global Health Care A $ 121.54 - -0.49 0.00 Lohengrin@genesisfundservices.com Tel: 242-502-7020
Global Opportunities I USD $ 1.54 - -0.04 2.12 Other International Funds Global Equity A1 € 24.65 - -0.66 0.00
Invesco Global Select Equity A $ 12.12 - 0.02 0.00 Lohengrin Fund Ltd - Class C € 33.14 - -14.11 0.00
Global Opportunities I GBP £ 1.06 - -0.02 1.93 Franklin Templeton International Services Sarl (IRL) Global High Yield Fund $ 23.70 - -0.09 0.00
JPMorgan House - International Financial Services Centre,Dublin 1, Ireland INDIA VALUE INVESTMENTS LIMITED (INVIL) Invesco Jap Eqty Core A $ 1.76 - -0.03 0.00
Global Opportunities I EUR € 1.52 - -0.01 1.98 Other International Funds www.invil.mu Global High Yield Fund € 15.88 - -0.19 0.00
Franklin Emerging Market Debt Opportunities Fund Plc Other International Funds Invesco Japanese Equity A $ 18.40 - -0.29 0.00 Lothbury Property Trust (UK)
Global Opportunities A GBP £ 0.99 - -0.02 1.46 155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900 Global Multi-Asset A1 $ 14.49 - -0.13 0.00
Franklin Emg Mkts Debt Opp CHFSFr 16.83 - -0.61 8.30 NAV £ 8.14 - 0.01 0.00
Invesco Korean Equity A $ 33.94 - 0.76 0.00 Property & Other UK Unit Trusts
Pan European Opportunities I EUR € 1.43 - -0.03 - Global Res.A1 $ 24.14 - -0.54 0.00
Franklin Emg Mkts Debt Opp EUR € 11.85 - -0.42 7.39 Lothbury Property Trust GBP £ 1802.73 1933.97 16.21 3.09
Invesco PRC Equity A $ 47.20 - 0.03 0.00
Intrinsic Value Investors (IVI) LLP (IRL) Global Total Return A1 € 17.29 - -0.30 0.00
Franklin Emg Mkts Debt Opp GBP £ 9.95 - -0.23 7.13
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 Invesco Pacific Equity A $ 44.49 - -0.42 0.07
Inflation-Adjusted Bond A1 $ 13.81 - -0.01 0.00
Franklin Emg Mkts Debt Opp SGD S$ 21.85 - -0.58 6.33 FCA Recognised
IVI European Fund EUR € 16.98 - -0.34 0.00 Invesco Global Technology A $ 15.04 - -0.07 0.00
Japan Equity A1 $ 9.92 - -0.18 0.00
Franklin Emg Mkts Debt Opp USD $ 16.71 - -0.47 7.19
IVI European Fund GBP £ 17.00 - -0.17 0.67 Invesco UK Eqty A £ 7.64 - 0.09 1.38
Latin American Equity Fd A1 $ 10.16 - -0.37 0.00

Frontier Capital (Bermuda) Limited Limited Maturity A1 $ 13.99 - 0.00 0.00

EFG Hermes Invest AD
Other International
Client services: +971 2 692 6101 clientservices@InvestAD.com
M & G (Guernsey) Ltd (GSY)
Prudent Wealth Fd A1 $ 14.59 - -0.05 0.00
DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE
Commercial Property-GBP Class £ 71.42 - -0.53 - Regulated
Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com Other International Funds
The M&G Offshore Fund Range Research Bond A1 $ 16.51 - 0.00 0.00
Other International Funds Global Real Estate-GBP C Class £ 45.26 - -0.50 - Invest AD - Iraq Opportunity Fund $ 62.99 - 0.37 0.00
Corporate Bond 1303.72 1344.04 -2.66 3.09
The EFG-Hermes Egypt Fund $ 29.93 - - 0.00 UK Equity A1 £ 7.65 - -0.17 0.00
Invest AD - Emerging Africa Fund $ 895.51 - -0.19 0.00
Global Basics 2179.71 2247.12 -4.57 0.30
EFG-Hermes Frontier Equity UCITS Fund Class I $ 1000.00 - - - US Conc.Growth A1 $ 14.60 - -0.29 0.00
GYS Investment Management Ltd (GSY) Invesco (LUX) Invest AD - GCC Focus Fund $ 1316.19 - -58.45 0.00
Global Leaders 3181.95 3314.53 -22.24 1.04
EFG-Hermes MENA Equity UCITS Fund Class A $ 1000.00 - - - Regulated Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282
US Government Bond A1 $ 17.09 - 0.02 0.00
Taurus Emerging Fund Ltd $ 170.22 173.70 -1.59 0.00 FCA Recognised Global High Yield Bond 929.38 958.12 -1.37 4.67
Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00 Invesco Management SA Value A1 $ 20.60 - -0.43 0.00
Invesco Active Multi-Sector Credit Fund A € 2.86 - -0.01 0.00 Global Macro Bond Fund 11318.05 11668.09 -46.42 1.38
Saudi Arabia Equity Fund SR 12.39 - -0.43 0.00
Generali International Limited
Invesco Asia Balanced A dist $ 13.44 - 0.01 3.82 North American Dividend Fund 150.61 156.88 -1.23 2.19
PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108 MMIP Investment Management Limited (GSY)
International Insurances Optimal Income Fund 139.68 144.00 -0.21 2.62 Regulated
Ennismore Smaller Cos Plc (IRL) Invesco Asia Consumer Demand Fund A income $ 11.76 - 0.03 0.24
Global Multi-Strategy Managed $ 4.63 4.99 -0.13 0.00 Multi-Manager Investment Programmes PCC Limited
5 Kensington Church St, London W8 4LD 020 7368 4220
Invesco Asia Infrastructure (A) $ 11.58 - 0.05 0.78 GAM Recovery Fund Limited 'A' Participating Shares 9466.20 9860.63 25.88 0.45 European Equity Fd Cl A Initial Ser € 2642.19 2642.19 62.94 0.00
FCA Recognised UK Multi-Strategy Managed £ 4.79 5.16 -0.10 0.00
funds@gam.com, www.jbfundnet.com
Ennismore European Smlr Cos NAV £ 102.58 - 0.47 0.00 Invesco Asia Opportunities Equity A $ 96.51 - 0.90 0.00 Recovery Fund Limited 'I' Participating Shares 9456.27 9551.79 26.65 1.29 Japanese Equity Fd Cl A Initial Ser ¥ 368031.00 368031.00 6127.00 0.00
EU Multi-Strategy Managed € 2.99 3.23 -0.07 0.00 Regulated
Ennismore European Smlr Cos NAV € 137.95 - -0.81 0.00 Ms EF Special Val. EUR/A € 131.60 - -2.07 1.15 Strategic Corporate Bond Fund 132.06 137.56 -0.23 2.98
Invesco Balanced Risk Allocation Fund A € 14.19 - -0.02 0.00 MMIP - US EQUITY CLASS A 01 June 07 Series $ 1304.31 1304.31 168.32 0.00
Global Bond USD $ 3.42 3.68 -0.01 0.00
Strategy Balanced-CHF/B SFr 145.51 - -1.59 0.00 UK Select 1446.71 1506.99 26.56 0.92
Invesco Emerging Europe Equity Fund A $ 6.94 - -0.03 0.00 Pacific Basin Fd Cl A Initial Ser $ 2059.34 2059.34 -82.99 0.00
Ennismore European Smlr Cos Hedge Fd Strategy Balanced-EUR € 150.39 - -1.71 0.00
Invesco Emerging Local Currencies Debt A Inc $ 6.47 - 0.02 7.11 UK Equity Fd Cl A Series 01 £ 2357.45 2381.20 0.73 0.00
Other International Funds
NAV € 496.00 - 10.70 0.00 Strategy Balanced-USD/B $ 125.47 - -1.23 0.00
14 | FTfm FINANCIAL TIMES Monday 11 January 2016

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
Diversified Absolute Rtn Fd USD Cl AF2 $ 1586.40 - -4.69 0.00 Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 13.14 - -0.12 0.00 China Equity GBP Ord Acc £ 132.42 - -0.65 0.00 Odey European Focus Fund € 17.16 - -0.21 0.50 Pictet-Em Lcl Ccy Dbt-I USD F $ 148.86 - 0.00 0.00 Emerging Markets Short-Term Local Currency Fund $ 11.44 - 0.00 0.00

Diversified Absolute Return Stlg Cell AF2 £ 1607.75 - -3.92 0.00 China Equity USD Ord Acc $ 128.89 - -0.61 0.00 Odey Atlas Fund GBP I S £ 1.15 - 0.01 0.00 Pictet-Emerging Markets-I USD F $ 425.33 - -0.41 0.00 Euro Bond - Inst Acc € 22.67 - -0.09 0.00

China Equity USD Inst Acc $ 132.60 - -0.63 0.00 Odey Giano European Fund EUR R € 123.09 - 0.04 0.00 Pictet-Emerging Markets Index-I USD F $ 192.05 - -5.44 0.00 Euro Credit - Inst Acc € 14.70 - -0.04 0.00

LNG Capital (CYM) Global Val.Cr.Fd GBP Ord Inc £ 108.22 - -0.33 3.63 Odey Naver Fund EUR I € 127.55 - 0.89 0.00 Pictet-Emerging Corporate Bonds I USD $ 105.28 - -0.26 0.00 Euro Income Bond - Inst Acc F € 12.87 - -0.06 0.00
Kingsbury House, 15-17 King St, London SW1Y 6QU
www.lngcapital.com, Tel: 0207 839 3456 Global Val.Cr.Fd USD Inst Acc $ 122.20 - -0.08 0.00 Odey Odyssey USD I $ 132.71 - -1.21 0.00 Pictet-Emerging Markets High Dividend I USD $ 83.79 - -0.04 0.00 Euro Long Average Duration - Inst Acc € 21.43 - -0.19 0.00
Regulated
LNG Europa Credit Fund EUR (Est) € 1196.70 - 65.31 - Global Val.Cr.Fd GBP Ord Acc £ 175.57 - -0.53 0.00 Odey Orion Fund EUR I € 118.14 - -0.43 0.00 Pictet-Emerging Markets Sust Eq I USD $ 75.37 - -1.46 0.00 Euro Low Duration Fund Inst Acc € 11.23 - -0.01 0.00
Morgan Stanley Investment Funds (LUX)
LNG Europa Credit Fund GBP (Est) £ 1196.70 - 56.94 - 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61 Global Val.Cr.Fd USD Ord Acc $ 164.80 - -0.49 0.00 Odey Swan Fund EUR I € 102.97 - 2.70 0.00 Pictet-Environmental Megatrend Sel I EUR € 154.41 - -3.92 0.00 Euro Real Return - Inst Acc € 13.34 - -0.06 0.00
www.morganstanleyinvestmentfunds.com
LNG Europa Credit Fund USD $ 1183.45 - -15.60 - FCA Recognised Global Val.Cr.Fd EUR Ord Acc € 153.33 - -0.48 0.00 Odey European Absolute Return GBP S £ 101.09 - 0.51 0.00 Pictet-EUR Bonds-I F € 555.41 - -1.11 0.00 Euro Short-Term Inst Acc € 12.23 - -0.01 0.00
US Advantage A F $ 55.89 - -0.94 0.00
Swiss Select Equity Inst Acc SFr 112.84 - -1.41 0.00 Pictet-EUR Corporate Bonds Ex Fin i EUR € 142.45 - -0.84 0.00 Euro Ultra Long Duration - Inst Acc € 28.25 - -0.32 0.00
Asian Equity A F $ 37.89 - -0.75 0.00 Odey Wealth Management (CI) Ltd (IRL)
Marlborough International Management Limited (GSY) Swiss Select Equity Ord Acc SFr 111.51 - -1.40 0.00 Pictet-EUR Corporate Bonds-I F € 199.02 - -0.52 0.00 Global Advantage - Inst Acc $ 11.87 - 0.00 0.00
Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520 www.odey.com/prices
Asian Property A F $ 16.86 - -0.18 0.00
FCA Recognised US Growth USD Ord Acc $ 194.45 - -6.49 0.00 FCA Recognised Pictet-EUR Government Bonds I EUR € 158.15 - -0.58 0.00 Global Advantage Real Return Fund Inst Acc $ 8.23 - -0.02 0.00
Marlborough North American Fund Ltd £ 31.26 33.31 -0.45 0.00 Asian Property AX F £ 10.78 - -0.01 0.54 Odey Opportunity EUR I € 214.86 - -3.17 0.00
US Growth EUR Ord Acc € 185.81 - -6.25 0.00 Pictet-EUR High Yield-I F € 238.05 - -0.90 0.00 Global Bond - Inst Acc $ 27.87 - -0.05 0.00
Marlborough Tiger Fund Ltd F £ 25.93 27.63 -0.11 0.00 Diversified Alpha Plus A F € 29.38 - 0.09 0.00
US Growth GBP Ord Acc £ 195.36 - -6.67 0.00 Pictet-EUR Short Mid-Term Bonds-I F € 136.97 - -0.06 0.00 Global Bond Ex-US - Inst Acc $ 19.55 - -0.05 0.00
Omnia Fund Ltd
Emerg Europ, Mid-East & Africa Eq A F € 61.18 - -1.84 0.00
US Growth USD Inst Acc $ 185.69 - -2.64 0.00 Other International Funds Pictet-EUR Short Term HY I EUR € 118.73 - -0.24 0.00 Global High Yield Bond - Inst Acc $ 19.56 - -0.08 0.00
Marwyn Asset Management Limited (CYM)
Emerging Markets Debt A F $ 74.25 - -0.13 0.00 Estimated NAV $ 855.62 - 16.81 0.00
Regulated Wealthy Nat Bd EUR Inst Inc € 105.39 - -0.54 3.83 Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.94 - -0.01 0.00 Global Investment Grade Credit - Inst Income $ 12.00 - -0.02 3.84
Marwyn Value Investors £ 458.79 - -5.08 0.00 Emerging Markets Domestic Debt AX F £ 10.11 - 0.02 5.66
Wealthy Nat Bd GBP Inst Inc £ 109.48 - -0.54 3.66 Pictet-Euroland Index IS EUR € 124.52 - -2.25 0.00 Global Investment Grade Credit Fund Inst Acc € € 11.75 - -0.10 0.00
Emerging Markets Equity A F $ 30.58 - -0.68 0.00
Wealthy Nat Bd EUR Ord Inc € 105.27 - -0.05 3.59 Pictet-Europe Index-I EUR F € 160.77 - -3.64 0.00 Global Investment Grade Credit Fund Inst Acc $ $ 16.58 - -0.03 0.00
Meridian Fund Managers Ltd Euro Bond A F € 15.70 - -0.04 0.00
Other International Funds Wealthy Nat Bd GBP Ord Inc £ 110.17 - -0.55 3.39 Pictet-European Equity Selection-I EUR F € 596.11 - -14.85 0.00 Global Multi-Asset - Inst Acc $ 13.83 - -0.35 0.00
Global Gold & Resources Fund $ 181.65 - 1.97 - Euro Corporate Bond AX F £ 21.90 - 0.24 1.54
Wealthy Nat Bd USD Ord Inc $ 107.85 - -0.05 3.37 Pictet-European Sust Eq-I EUR F € 232.97 - -4.48 0.00 Global Real Return - Inst Acc $ 17.84 - -0.05 0.00
Global Energy & Resources Fund $ 34.67 - 0.79 - Euro Strategic Bond A F € 43.24 - -0.16 0.00
New Capital Alternative Strategies Optima Fund Management Pictet-Global Bds Fundamental I USD $ 115.27 - 0.22 0.00 Income Fund Inst Acc $ 12.27 - -0.04 0.00
European Currencies High Yield Bd A F € 21.24 - -0.10 0.00 All Weather Fd USD Cls $ 118.47 - 0.69 0.00 Other International Funds
Cuttyhunk Fund II Limited $ 1360.80 - 38.19 0.00 Pictet-Global Bonds-I EUR € 166.54 - -0.85 0.00 Inflation Strategy Fund Inst Acc $ 8.56 - -0.05 0.00
European Equity Alpha A F € 40.53 - -0.81 0.00 All Weather Fd EUR Cls € 106.34 - 0.53 0.00
JENOP Global Healthcare Fund Ltd $ 15.05 - 0.04 0.00 Pictet-Global Emerging Currencies-I USD F $ 94.31 - 0.04 0.00 Low Average Duration - Inst Acc $ 14.79 - -0.01 0.00
European Property A F € 34.28 - -0.73 0.00 All Weather Fd GBP Cls £ 114.58 - 0.58 0.00
OPTIKA Fund Limited - Cl A $ 100.25 - -0.27 - Pictet-Global Emerging Debt-I USD F $ 351.54 - -2.54 0.00 PIMCO RAE Fundam.PLUS Em.Mkts Inst Acc $ 7.35 - -0.25 0.00
Eurozone Equity Alpha A F € 10.86 - -0.18 0.00 Tactical Opps USD Cls $ 135.49 - -6.94 0.00
Optima Fd NAV (Est) $ 90.40 - 0.32 0.00 Pictet-Global Megatrend Selection-I USD F $ 208.46 - -4.56 0.00 PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 10.14 - -0.26 0.00
Global Bond A F $ 38.18 - 0.04 0.00 Tactical Opps EUR Cls € 113.28 - -5.86 0.00
Emerging Markets Managed Accounts PLC (IRL) Optima Discretionary Macro Fund Limited $ 87.21 - -1.06 0.00 Pictet-Greater China-I USD F $ 415.12 - 1.70 0.00 PIMCO RAE Fundam.PLUS US Inst Acc $ 11.52 - -0.28 0.00
info@emmaplc.com,+44(0)20 8123 8369 www.emmaplc.com Global Brands A F $ 94.81 - -0.81 0.00 Tactical Opps GBP Cls £ 127.49 - -6.55 0.00
Regulated The Dorset Energy Fd Ltd NAV $ 23.21 - 2.02 0.00 Pictet-Health-I USD $ 259.95 - -5.49 0.00 Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.36 - -0.05 0.00
Milltrust ASEAN A $ 83.99 - -2.16 0.00 Global Convertible Bond A F $ 41.42 - -0.23 0.00
Platinum Fd Ltd $ 85.67 - 1.33 0.00 Pictet-High Dividend Sel I EUR F € 149.61 - -3.44 0.00 StocksPLUS{TM} - Inst Acc $ 21.88 - -0.63 0.00
Milltrust India A $ 123.77 - -1.44 0.00 Global Property A F $ 26.84 - -0.30 0.00
Platinum Fd Ltd EUR € 16.63 - 0.25 0.00 Pictet-India Index I USD $ 91.05 - -2.35 0.00 Total Return Bond - Inst Acc $ 27.14 - -0.03 0.00
Milltrust Latin America A $ 62.66 - -1.61 0.00 Indian Equity A F $ 33.33 - -0.65 0.00
Platinum Japan Fd Ltd $ 53.13 - -0.05 0.00 Pictet-Indian Equities-I USD F $ 415.88 - 4.28 0.00 UK Corporate Bond - Inst Acc £ 17.26 - -0.05 0.00
Milltrust Keywise China Fund $ 113.75 - -3.94 0.00 Latin American Equity A F $ 33.46 - -0.79 0.00
Optima Partners Global Fd $ 14.22 - 0.00 0.00 Pictet-Japan Index-I JPY F ¥ 15249.67 - -100.23 0.00 UK Long Term Corp. Bnd Inst-Inst Acc £ 19.17 - -0.09 0.00
Short Maturity Euro Bond A F € 20.37 - -0.01 0.00
Northwest Investment Management (HK) Ltd Optima Partners Focus Fund A (Est) $ 14.26 - -1.52 0.00 Pictet-Japanese Equities Opp-I JPY F ¥ 9073.55 - -59.01 0.00 UK Low Duration - Inst Acc £ 14.07 - -0.02 0.00
US Dollar Liquidity A F $ 13.03 - 0.00 0.00 11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373
Other International Funds Pictet-Japanese Equity Selection-I JPY F ¥ 13470.49 - -81.11 0.00 UK Real Return - Inst Acc £ 22.62 - 0.00 0.00
US Growth A F $ 65.50 - -1.02 0.00 Northwest $ class $ 2357.94 - -24.48 0.00
Oryx International Growth Fund Ltd Pictet-LATAM Index I USD $ 43.70 - -1.41 0.00 UK Sterling Long Average Duration - Inst Acc £ 21.71 - -0.13 0.00
US Growth AH F € 45.36 - -0.70 0.00 Other International Funds
Northwest Warrant $ class $ 1969.35 - -444.40 0.00
NAV (Fully Diluted) £ 6.93 - 0.36 0.00 Pictet-LATAM Lc Ccy Dbt-I USD F $ 103.41 - -1.37 0.00 Unconstrained Bond - Inst Acc $ 11.83 - -0.06 0.00
US Growth AX F £ 44.89 - -0.53 0.00
Pictet-Pacific Ex Japan Index-I USD F $ 305.33 - -8.30 0.00 US High Yield Bond Fund Inst Acc $ 26.78 - -0.11 0.00
Mirabaud Asset Management (LUX)
www.mirabaud.com, marketing@mirabaud.com US Property A F $ 68.39 - -0.68 0.00
OTP Asset Management Romania SAI SA ((ROM)) Pictet-Premium Brands-I EUR F € 144.18 - -3.53 0.00
Regulated www.otpfonduri.ro
Mir. Conv. Bds Eur A EUR € 135.10 - -0.88 0.00 Other International Funds Pictet-Quality Global Equities I USD $ 128.81 - -1.54 0.00
Morgens Waterfall Vintiadis.co Inc OTP Comodisro RON 16.87 - 0.00 -
Mir. Conv. Bds Glb A USD $ 112.03 - -1.08 0.00 Pictet-Russia Index I USD $ 44.05 - -0.95 0.00
Other International Funds
Phaeton Intl (BVI) Ltd (Est) $ 402.53 - 4.90 0.00 OTP Obligatiuni RON 14.27 - 0.00 -
Mir. - Eq Asia ex Jap A $ 161.41 - 1.78 0.00 Pictet-Russian Equities-I USD F $ 39.22 - -0.69 0.00
Oasis Crescent Management Company Ltd
Other International Funds OTP Avantisro RON 8.31 - -0.07 -
Mir. - Eq Glb Emrg Mkt A USD $ 80.78 - 0.57 0.00 Pictet-Security-I USD F $ 189.72 - -3.42 0.00
Oasis Crescent Equity Fund R 9.11 - -0.03 0.00 Platinum Capital Management Ltd
OTP Euro Bond € 12.42 - 0.00 -
Mir. - Eq Global Focus A USD $ 96.26 - -1.66 0.00 Pictet-Select-Callisto I EUR € 105.47 - 0.22 0.00 Other International Funds
OTP Dollar Bond $ 10.57 - 0.00 - Platinum All Star Fund - A (Est) $ 117.32 - - -
Mir. -Eq Spain A € 24.00 - -0.43 0.00 Pictet-Small Cap Europe-I EUR F € 1103.12 - -24.74 0.00
Oasis Global Mgmt Co (Ireland) Ltd (IRL)
Regulated OTP Premium Return RON 1063.59 - -3.17 - Platinum Global Dividend Fund - A (Est) $ 55.26 - - -
Mir. - Eq Swiss Sm/Mid A SFr 319.98 - -6.95 0.00 Pictet-ST.MoneyMkt-I € 140.45 - -0.01 0.00
Oasis Global Investment (Ireland) Plc
Platinum Maverick Enhanced Fund Limited (Est) $ 93.98 - - 0.00
Mir. - Glb High Yield Bds A $ 106.48 - -0.31 - Oasis Crescent Global Short Term Income Fund $ 0.98 - 0.00 0.86 Pictet-ST.MoneyMkt JPY I USD ¥ 101511.74 - 2.01 0.00
Natixis International Funds (Lux) I SICAV (LUX)
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000 Oasis Global Equity $ 25.76 - -0.42 0.23
Mir. - Glb Eq High Income A USD $ 94.26 - -1.25 0.00 Pictet-ST.MoneyMkt-ICHF SFr 124.16 - 0.00 0.00
FCA Recognised
Mir. - Glb Inv Grade Bds A € 100.28 - -0.29 - Harris Global Equity R/A (USD) $ 238.04 238.04 -6.56 0.00 Oasis Crescent Global Investment Fund (Ireland) plc Pictet-ST.MoneyMkt-IUSD $ 135.32 - 0.00 0.00
Oasis Crescent Global Equity Fund $ 26.23 - -0.41 0.00
Mir. - Glb Strat. Bd A USD $ 103.78 - -0.12 0.00 Harris US Equity Fund R/A (USD) $ 191.31 191.31 -6.03 0.00 Pictet-Timber-I USD F $ 135.83 - -5.06 0.00
Oasis Crescent Variable Balanced Fund £ 10.06 - -0.13 0.59
Mir. Opp.- Activ.Strategies I $ 96.54 - -2.32 0.00 Harris Concentrated US Equity R/A (USD) $ 145.16 145.16 -4.60 0.00 Pictet Total Ret-Agora I EUR € 116.53 - -0.13 0.00
Permal Investment Mgmt Svcs Ltd
OasisCresGl Income Class A $ 10.68 - -0.02 2.42 www.permal.com
Mir. Opp. -Emerg. Mkt HO $ 102.74 - 0.00 0.00 Loomis Sayles Strategic Alpha R/A (USD) $ 109.39 109.39 -0.18 - Pictet Total Ret-Corto Europe I EUR € 136.30 - -0.85 0.00 Polar Capital Funds Plc (IRL)
Other International Funds
OasisCresGl LowBal D ($) Dist $ 11.24 - -0.11 0.00 Regulated
MirAlt Sicav-Diversified A Cap. $ 107.83 - -0.98 0.00 Offshore Fund Class A US $ Shares Pictet Total Ret-Divers Alpha I EUR € 104.82 - -0.36 0.00
Investment Holdings N.V. $ 5487.68 - 49.80 0.00 Biotechnology I USD $ 16.86 16.86 -0.64 0.00
OasisCresGl Med Eq Bal A ($) Dist $ 11.38 - -0.14 0.33
MirAlt Sicav-Europe A dis € 73.66 - 0.77 0.00
Natixis International Funds (Dublin) I plc (IRL)
Pictet Total Ret-Kosmos I EUR € 108.62 - -0.23 0.00 UK Absolute Equity I GBP £ 13.16 13.16 0.10 0.00
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000 Macro Holdings Ltd $ 4192.02 - 66.31 0.00
Oasis Crescent Gbl Property Eqty $ 9.14 - -0.12 2.07
MirAlt Sicav - North America A dis $ 155.78 - 0.12 0.00 Regulated Pictet Total Ret-Mandarin I USD $ 110.92 - -1.89 0.00
Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.24 12.24 0.01 1.22 Fixed Income Holdings N.V. $ 364.13 - -1.93 -
Pictet-US Equity Selection-I USD $ 178.52 - -4.65 0.00 Polar Capital LLP (CYM)
Loomis Sayles High Income R/D (USD) $ 7.32 7.32 -0.06 15.55 Permal Absolute Return Fund $ 163.59 - 0.48 0.00 Regulated
MW Japan Fund Plc (IRL)
Pictet-US High Yield-I USD F $ 142.79 - -0.37 0.00
FCA Recognised ALVA Convertible A USD $ 128.64 - -0.21 0.00
Loomis Sayles Multisector Income R/D (GBP) $ 11.38 11.38 -0.07 5.93
MW Japan Fund PLC A $ 24.51 - -0.36 - Pictet-USA Index-I USD F $ 171.82 - -4.18 0.00 European Conviction A EUR € 140.86 - 1.11 0.00
MW Japan Fund PLC B $ 24.70 - -0.36 - Pictet-USD Government Bonds-I F $ 637.29 - 0.92 0.00 European Forager A EUR € 174.98 - 0.29 0.00
MW Japan Fund PLC C $ 92.90 - -0.73 - Odey Asset Management LLP (CYM) Pictet-USD Short Mid-Term Bonds-I F $ 129.63 - 0.00 0.00
Regulated
OEI Mac Inc GBP A £ 358.19 - -15.28 0.00 Pictet-USD Sov.ST.Mon.Mkt-I $ 102.67 - 0.01 0.00 Polunin Capital Partners Ltd
Morant Wright Funds (Ireland) PLC (IRL) Other International Funds
OEI Mac Inc GBP B £ 201.79 - -3.13 0.00
Pictet Asset Management (Europe) SA (LUX) Pictet-Water-I EUR F € 270.67 - -6.03 0.00
FCA Recognised Emerging Markets Active $ 40.08 - -0.85 -
15, Avenue J.F. Kennedy L-1855 Luxembourg
Morant Wright Fuji Yield EUR Acc Hedged € 11.68 - 0.07 - New Capital Fund Management Ltd (IRL)
OEI MAC Inc USD $ 1914.43 - -79.92 0.00 Tel: 0041 58 323 3000 Luxcellence Em Mkts Tech $ 892.74 - -19.55 0.00
Leconfield House, Curzon Street, London, W1J 5JB FCA Recognised
Morant Wright Fuji Yield EUR Dist Hedged € 10.56 - -0.08 - FCA Recognised Odey European Inc EUR € 837.15 - -33.12 0.00 Pictet-Absl Rtn Fix Inc-HI EUR € 106.54 - -0.05 0.00
Pimco Fds: Global Investors Series Plc (IRL)
Polunin Developing Countries $ 668.55 674.23 -18.77 0.00
New Capital UCITS Funds PIMCO Europe Ltd,11 Baker Street,London W1U 3AH
Morant Wright Fuji Yield GBP Acc Hedged £ 10.95 - -0.08 0.00 Odey European Inc GBP A £ 322.51 - -12.70 0.00 http://gisnav.pimco-funds.com/
Asia Pac Bd USD Inst Inc $ 90.62 - -0.12 3.27 Pictet-Absl Rtn Glo Div-I EUR F € 123.06 - -0.67 0.00 Polunin Discovery - Frontier Markets $ 1356.97 - 8.65 0.00
Dealing: +44 20 3640 1000
Morant Wright Fuji Yield GBP Dist Hedged £ 10.65 - -0.08 - Odey European Inc GBP B £ 183.03 - -7.20 0.00
Asia Pac Bd USD Ord Inc $ 92.57 - -0.06 2.53 Pictet-Agriculture-I EUR F € 176.04 - -4.28 0.00 PIMCO Funds: +44 (0)20 3640 1407 Polunin Small Cap $ 1361.66 1378.68 -20.61 0.00
Morant Wright Fuji Yield USD Acc Hedged $ 10.65 - -0.09 0.00 FCA Recognised
Asia Pac Eq EUR Ord Inc € 80.01 - -1.60 3.42 Odey European Inc USD $ 387.15 - -14.81 0.00 Pictet-Asian Equities Ex Japan-I USD F $ 189.47 - 1.19 0.00 Capital Securities Inst Acc $ 14.85 - -0.06 0.00
Morant Wright Fuji Yield USD Dist Hedged $ 10.68 - -0.09 2.14 Giano Capital EUR Inc € 4652.16 - 195.57 0.00 Private Fund Mgrs (Guernsey) Ltd (GSY)
Asia Pac Eq GBP Ord Inc £ 82.72 - -1.67 3.86 Pictet-Asian Local Currency Debt-I USD F $ 149.64 - -0.15 0.00 Commodity Real Return Fund Inst Acc $ 5.57 - -0.01 0.00
Regulated
Morant Wright Fuji Yield YEN Acc ¥ 1098.85 - -8.70 0.00
Asia Pac Eq USD Ord Inc $ 83.55 - -1.64 3.24 Pictet-Biotech-I USD F $ 770.82 - -32.24 0.00 Credit Absolute Return Fund Inst Acc $ 10.95 - -0.03 0.00 Monument Growth 29/12/2015 £ 500.70 506.28 11.57 1.21
Morant Wright Fuji Yield B YEN Acc ¥ 968.34 - -7.57 -
Asia Pac Eq USD Inst Acc $ 89.83 - -1.75 0.00
Odey Asset Management LLP (IRL)
Pictet-Brazil Index I USD $ 31.57 - -0.92 0.00
FCA Recognised Diversified Income - Inst Acc $ 19.04 - -0.06 0.00
Morant Wright Fuji Yield YEN Dist ¥ 1076.05 - -8.52 2.13 Odey Pan European EUR R € 333.21 - -6.00 0.00 Prusik Investment Management LLP (IRL)
Asia Pac Eq USD Inst Inc $ 94.96 - -0.81 3.97 Pictet-CHF Bonds I CHF SFr 506.66 - 1.13 0.00 Diversified Income Durat Hdg Fund Inst Acc $ 11.08 - -0.06 0.00
Enquiries - 0207 493 1331
Morant Wright Sakura Fund Sterling Acc Hedged £ 13.31 - -0.12 0.00 Odey Absolute Return Focus Fund $ 100.00 - - - Regulated
Dyn Europ Eq EUR Ord Inc € 173.19 - -1.89 1.33 Pictet-China Index I USD $ 95.30 - -4.20 0.00 Emerging Asia Bond Fund Inst Acc $ 9.39 - 0.01 0.00
Prusik Asian Equity Income B Dist $ 147.46 - 0.19 3.84
Morant Wright Sakura Fund Euro Acc Hedged € 13.28 - -0.12 0.00 Odey Allegra European EUR O € 257.07 - -4.45 0.00
Dyn Europ Eq GBP Ord Inc £ 183.74 - -2.08 1.69 Pictet-Clean Energy-I USD F $ 72.85 - -2.16 0.00 Emerging Local Bond - Inst Acc $ 10.33 - -0.01 0.00
Prusik Asia A $ 184.83 - -1.40 0.00
Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1356.97 - -12.69 0.00 Odey Allegra International EUR O € 172.13 - -2.86 0.00
Dyn Europ Eq USD Ord Inc $ 172.88 - -1.91 1.25 Pictet-Digital Communication-I USD F $ 244.95 - -5.35 0.00 Emerging Markets Bond - Inst Acc $ 37.05 - -0.17 0.00
Prusik Asian Smaller Cos A $ 132.15 - -0.03 0.00
Morant Wright Sakura Fund Dollar Acc Hedged $ 13.23 - -0.12 0.00 Odey Allegra Developed Markets USD I $ 121.42 - -3.37 0.00
China Equity EUR Ord Acc € 126.67 - -0.59 0.00 Pictet-Eastern Europe-I EUR F € 256.90 - 1.88 0.00 Emerging Markets Corp.Bd Fund Inst Acc F $ 12.45 - -0.05 0.00
FINANCIAL TIMES Monday 11 January 2016 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
RobecoSAM Sustainable Gl.Eq/N € 148.66 - -3.96 0.00 Renminbi Bond Fund EUR Cls A € 101.01 - -1.73 4.00 International B $ 368.02 - -6.52 0.00 Veritas Global Equity Income Fund B GBP £ 123.97 - -0.19 4.20

Purisima Investment Fds (CI) Ltd (JER) RobecoSAM S.HealthyLiv/B € 172.58 - -3.99 0.00 International C £ 124.38 - -2.12 0.00 Veritas Global Equity Income Fund B EUR € 167.92 - 0.07 4.19
Regulated
PCG B 158.09 - -3.49 0.00 RobecoSAM S.HealthyLiv/N € 160.89 - -3.72 0.00 International D € 266.53 - -4.69 3.04 Veritas Global Equity Income Fund B USD $ 100.84 - 0.10 4.27

PCG C 155.88 - -3.43 0.00 RobecoSAM S.HealthyLiv/Na £ 104.37 - -1.30 - TreeTop Global Sicav Veritas Global Real Return Fund B USD $ 19.78 - -0.17 0.00
Global Opp.A € 134.37 - -2.35 0.00
RobecoSAM S.Water/A £ 162.61 - -2.60 1.22 Veritas Global Real Return Fund B GBP £ 11.21 - -0.06 0.00
Global Opp.B $ 131.93 - -2.12 0.00
Putnam Investments (Ireland) Ltd (IRL) RobecoSAM S.Water/N € 157.46 - -4.20 0.00 Veritas Global Real Return Fund B EUR € 12.86 - -0.11 0.00
Regulated E.I. Sturdza Strategic Management Limited (GSY) Global Opp.C £ 173.17 - -2.32 0.00
Putnam New Flag Euro High Yield Plc - E € 1007.69 - -2.84 4.30 Regulated
Nippon Growth Fund Limited ¥ 95067.00 - -3918.00 0.00 Sequoia Equity A € 136.64 - -2.39 0.00
Veritas Asset Management LLP
Strat Evarich Japan Fd Ltd JPY ¥ 90447.00 - -929.00 0.00 Sequoia Equity B $ 138.73 - -2.14 0.00 www.veritas-asset.com
Other International Funds
Strat Evarich Japan Fd Ltd USD $ 894.83 - -9.07 0.00 Sequoia Equity C £ 163.24 - -2.07 0.00 Real Return Asian Fund USD (Est) € 277.60 - -26.20 0.00

Real Return Asian Fund GBP (Est) £ 296.77 - -7.03 0.00

Schroder Property Managers (Jersey) Ltd E.I. Sturdza Funds PLC (IRL) Unicapital Investments (LUX) Real Return Asian Fund EUR (Est) $ 292.91 - -10.89 0.00
Other International Funds Regulated Regulated
Indirect Real Estate SIRE £ 133.37 139.46 0.14 2.88 Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 1067.95 - 1.06 0.00 Investments III € 5.03 - -22.38 -

Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1258.29 - 1.26 0.00 Investments IV - European Private Eq. € 247.75 260.13 -44.58 - Waverton Investment Funds Plc (1600)F (IRL)
waverton.investments@citi.com
Ram Active Investments SA SIA (SIA Funds AG) (LUX) Nippon Growth (UCITS) Fund JPY Class A shares ¥ 98806.00 - 101.00 0.00 Investments IV - Global Private Eq. € 366.42 384.74 -49.81 - FCA Recognised
www.ram-ai.com Regulated Waverton Asia Pacific A USD $ 16.27 - -0.16 5.23
Other International Funds LTIF Classic € 312.31 - -11.03 0.00 Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 82852.00 - 85.00 0.00
RAM Systematic Emerg Markets Core Eq $ 73.00 - -1.61 - Waverton Global Bond Fund Cls A $ 8.73 - -0.01 5.42
LTIF Natural Resources € 64.21 - -2.26 0.00 Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 82212.00 - 968.00 0.00

Asset Management
RAM Systematic Emerg Markets Eq $ 132.98 - -2.56 - Waverton Global Equity Fund A GBP £ 13.06 - -0.21 0.58
LTIF Stability A ACCU € 158.21 - -2.37 0.00 Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 53658.00 - 55.00 0.00
RAM Systematic European Eq € 370.46 - -7.74 -
Strategic China Panda Fund USD $ 2074.94 - -72.96 0.00 Asset Management Waverton UK Fund A GBP £ 12.75 - 0.14 1.85
Asset Management
RAM Systematic Global Shareholder Yield Eq $ 95.02 - -1.66 0.00 Waverton Equity Fund A GBP £ 14.23 - -0.20 0.19
SIA (SIA Funds AG) (CH) Strategic China Panda Fund Hedged EURO € 2025.04 - -69.42 0.00
RAM Systematic Long/Short Emerg Markets Eq $ 119.01 - 0.11 -
Other International Fds Value Partners Hong Kong Limited (IRL) Waverton Sterling Bond Fund A GBP £ 9.46 - -0.01 5.31
LTIF Stability Growth SFr 190.40 - -1.40 - Strategic China Panda Fund Hedged Sterling £ 2051.80 - -71.57 0.00 www.valuepartners.net, fis@vp.com.hk
RAM Systematic Long/Short European Eq € 146.33 - -0.78 - Regulated
LTIF Stability Inc Plus SFr 163.50 - -1.10 0.55 Strategic Euro Bond Accumulating Class CHFSFr 982.66 - -0.49 0.00 Value Partners Asia ex-Japan Equity Fund $ 8.10 - -0.31 -
RAM Systematic North American Eq $ 216.60 - -4.71 -
WA Fixed Income Fund Plc (IRL)
Strategic Euro Bond Institutional Class EUR € 1010.59 - -0.50 0.00 Regulated
Value Partners Classic Equity Fund USD Z Unhedged $ 10.45 - 0.09 0.00
RAM Tactical Convertibles Europe € 142.84 - -0.58 - European Multi-Sector € 116.02 - -0.65 0.00
Standard Life Wealth (JER) Strategic Euro Bond Fund Accumulating Class Shares € 1132.84 - -0.57 0.00 Value Partners Classic Equity Fund CHF HedgedSFr 10.92 - 0.09 0.00
PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
RAM Tactical Global Bond Total Return € 138.60 - 0.21 -
FCA Recognised Strategic Euro Bond Fund Distributing Class Shares € 1022.33 - -0.51 1.33 Value Partners Classic Equity Fund EUR Hedged € 11.04 - 0.09 0.00
RAM Tactical II Asia Bond Total Return $ 125.40 - 0.02 - Standard Life Offshore Strategy Fund Limited
Bridge Fund £ 1.5799 - -0.0062 2.03 Strategic European Smaller Companies Fund EUR Class € 975.61 - -17.43 - Value Partners Classic Equity Fund GBP Hedged £ 11.29 - 0.09 0.00

Diversified Assets Fund £ 1.1642 - -0.0034 2.88 Strategic Global Bond RMB Acc $ 1033.91 - -10.39 0.00 Value Partners Classic Equity Fund GBP Unhedged £ 12.02 - -0.48 0.00

Global Equity Fund £ 1.8528 - -0.0239 1.06 Strategic Global Bond USD Acc $ 1041.84 - -0.83 0.00 Value Partners Classic Equity USD Hedged $ 12.85 - 0.11 0.00

Global Balanced Fund - Income Units £ 1.3235 - -0.0039 1.90 Strategic US Momentum and Value Fund $ 724.76 - -15.09 0.00 Value Partners Greater China Equity Fund $ 7.84 - -0.38 - Yuki International Limited (IRL)
Tel +44-20-7269-0207 www.yukifunds.com
Global Balanced Fund - Accumulations Units £ 1.5486 - -0.0045 1.86 Strategic US Momentum & Value Fund USD I Class $ 481.49 - -10.02 0.00 Value Partners Health Care Fund RMB Class Z UnhedgedCNH 9.81 - -0.40 - Regulated
Yuki Mizuho Umbrella Fund
Robeco Asset Management (LUX) Global Fixed Interest Fund £ 0.9668 - -0.0012 5.09 Strategic US Momentum and Value EUR Hedged Class EUR € 505.48 - -10.30 0.00 Value Partners Health Care Fund HKD Class A UnhedgedHK$ 9.04 - -0.33 - Yuki Mizuho Japan Dynamic Growth ¥ 6444.00 - -47.00 0.00
Coolsingel 120, 3011 AG Rotterdam, The Netherlands.
Sterling Fixed Interest Fund £ 0.8377 - -0.0021 4.21 Strategic US Momentum and Value CHF Hedged Class CHFSFr 502.35 - -10.34 0.00 Value Partners Health Care Fund USD Class A Unhedged $ 9.07 - -0.33 -
www.robeco.com/contact Yuki Mizuho Japan Large Cap ¥ 777.62 - -0.38 0.00
FCA Recognised
UK Equity Fund £ 1.8484 - 0.0207 2.81 Yuki Japan Low Price ¥ 25482.00 - -234.00 0.00
Asia-Pacific Equities (EUR) € 126.41 - -1.27 0.00
The Hartford International Funds (IRL) Veritas Asset Management LLP (IRL)
Chinese Equities (EUR) € 68.99 - -0.92 0.00 Regulated Yuki Japan Value Select ¥ 11968.00 - -87.00 0.00
HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
Gbl Govt Bond (Ex Japan) Index (GBP) £ 1632.08 - 10.61 0.00 Veritas Funds Plc
Em Stars Equities (EUR) € 159.64 - -2.02 0.00 YMR Umbrella Fund
www.veritas-asset.com YMR N Growth ¥ 16774.00 - -17.00 0.00
UK Corporate Bond £ 1585.45 - 6.21 0.00
Emerging Markets Equities (EUR) € 132.90 - -2.26 0.00 +353 1 635 6799
Gilt £ 1596.48 - 7.21 0.00 FCA Recognised Yuki Asia Umbrella Fund
Flex-o-Rente (EUR) € 109.66 - 0.00 0.00 Institutional Yuki Japan Rebounding Growth Fund JPY Class ¥ 22443.00 - -233.00 0.00
Global Eq (Ex Japan) Index Fund ¥ 1.31 - -0.02 0.00 Veritas Asian Fund A USD H $ 298.05 - 0.34 0.42
Glob.Consumer Trends Equities (EUR) € 148.74 - -3.74 0.00 Yuki Japan Rebounding Growth Fund USD Hedged Class $ 889.87 - -9.26 -
Stenham Asset Management Inc
www.stenhamassetmanagement.com Global Eq (ex Japan) Class HJ4 ¥ 1.36 - -0.03 0.00 Veritas Asian Fund A GBP H £ 375.77 - -0.07 0.24
High Yield Bonds (EUR) € 121.15 - -1.27 0.00
Other International Funds
Global Eq (ex Japan) Class JP5 ¥ 1.42 - -0.04 0.00 Veritas Asian Fund A EUR H € 309.42 - -0.30 0.21
Lux -O- Rente (EUR) € 141.42 - -0.03 0.00 Stenham Asia USD $ 129.80 - -0.24 - Zadig Gestion (Memnon Fund) (LUX)
Global Eq Ex Japan Index Fund (Hedge) ¥ 1.30 - -0.04 0.00 Veritas China Fund A USD $ 134.28 - 0.54 0.35 FCA Recognised
New World Financials (EUR) € 49.23 - -1.59 0.00 Stenham Credit Opportunities A Class USD $ 100.92 - -1.14 0.00 Memnon European Fund I GBP £ 111.52 - -1.16 0.00
Gbl Govt Bond (Ex Japan) Index ¥ 1.29 - -0.01 0.00 Veritas China Fund A GBP £ 138.97 - 0.55 0.36
US Premium Equities (EUR) € 170.05 - -4.38 0.00 Stenham Equity UCITS USD $ 136.23 - -5.95 0.00
Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.27 - 0.00 0.00 Veritas China Fund A EUR € 132.79 - 0.52 0.36
US Premium Equities (USD) $ 190.11 - -5.00 0.00 Stenham Growth USD $ 215.45 - 0.55 - Zebedee Capital Partners LLP (CYM)
Japan Equity Index Fund ¥ 1.00 - -0.01 0.00 Veritas Global Equity Income Fund D USD $ 105.78 - 0.11 4.25 Regulated
Stenham Healthcare USD $ 183.27 - 2.63 0.00 Zebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00
Japan Equity Class JP3 ¥ 1.21 - -0.01 0.00 Veritas Global Equity Income Fund D EUR € 188.49 - 0.08 4.17
Stenham Managed Fund USD $ 114.16 - 0.50 - Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00
Veritas Global Equity Income Fund D GBP £ 140.71 - -0.21 4.17
Stenham Macro UCITS USD $ 101.49 - -0.07 - Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00
The National Investor (TNI) Veritas Global Focus Fund D USD $ 24.52 - -0.15 0.65
Stenham Multi Strategy USD $ 116.28 - 0.06 - www.tni.ae
Other International Funds Veritas Global Focus Fund D EUR € 22.70 - -0.16 0.64
Stenham Quadrant USD A $ 401.53 - 7.27 -
TNI Blue Chip UAE Fund * AED 9.59 - -0.05 0.00
S W Mitchell Capital LLP (CYM)
Veritas Global Focus Fund D GBP £ 28.49 - -0.26 0.63
Regulated Stenham Trading Inc USD $ 116.19 - 1.90 -
TNI Funds Ltd (BMU) Data Provided by
S W Mitchell European Fund Class A EUR € 338.41 - 4.04 - MENA Hedge Fund $ 938.96 - 33.96 0.00 Veritas Global Focus Fund A GBP £ 27.52 - -0.24 0.36
Stenham Universal USD $ 431.45 - -0.38 -
S W Mitchell Small Cap European Fund Class A EUR € 231.17 - -2.80 - TNI Funds Plc (Ireland) Veritas Global Focus Fund A EUR € 13.23 - -0.10 0.36
Stenham Universal II USD $ 159.84 - -0.20 0.00
MENA UCITS Fund * $ 1062.25 - -13.26 0.00
The Charlemagne Fund EUR € 327.90 - 4.49 - Veritas Global Focus Fund A USD $ 23.66 - -0.15 0.38

Stratton Street Capital (CI) Limited (GSY) Veritas Global Focus Fund C GBP £ 29.88 - -0.26 0.00
S W Mitchell Capital LLP (IRL) Regulated
Veritas Global Focus Fund C EUR € 23.91 - -0.17 0.00
Regulated Japan Synthetic Warrant Yen Class ¥ 1782.40 - 9.56 0.00
SWMC European Fund B EUR € 14615.25 - -249.37 0.00 Veritas Global Focus Fund C USD $ 25.76 - -0.16 0.00 www.morningstar.co.uk
Japan Synthetic Warrant GBP Hedged Class £ 197.20 - -2.68 0.00
SWMC UK Fund B £ 11863.07 - -177.19 0.00 Data as shown is for information purposes only. No
Veritas Global Equity Income Fund A GBP £ 134.83 - -0.20 4.18
Japan Synthetic Warrant USD Class $ 19.22 - 0.47 0.00 offer is made by Morningstar or this publication.
SWMC Small Cap European Fund B EUR € 13233.11 - -141.65 0.00 Veritas Global Equity Income Fund A EUR € 183.09 - 0.08 4.17
Japan Synthetic Warrant USD Hedged Class $ 196.54 - -2.43 0.00 Toscafund Asset Management LLP (UK)
SWMC Emerging European Fund B EUR € 8623.75 - -197.55 0.00 www.toscafund.com
Veritas Global Equity Income Fund A USD $ 101.77 - 0.10 4.25
Renminbi Bond Fund AUD Cls A A$ 111.63 - -1.95 3.93 Authorised Funds
Aptus Global Financials B Acc £ 3.02 - -0.08 4.54 Veritas Global Equity Income Fund C GBP £ 162.07 - -0.25 -
Renminbi Bond Fund AUD Cls B A$ 113.50 - -1.98 3.67
Aptus Global Financials B Inc £ 2.64 - -0.07 4.55 Veritas Global Equity Income Fund C EUR € 219.97 - 0.10 -
Renminbi Bond Fund CHF Cls A SFr 108.25 - -1.86 4.01
Veritas Global Equity Income Fund C USD $ 121.56 - 0.12 -
Renminbi Bond Fund CHF Cls B SFr 108.25 - -1.86 3.76
Toscafund Asset Management LLP (CYM)
Veritas Global Real Return Fund A USD $ 20.39 - -0.18 0.29
Renminbi Bond Fund CNH Cls A CNH 122.11 - -0.61 3.36 www.toscafund.com
Regulated Veritas Global Real Return Fund A GBP £ 11.43 - -0.06 0.32
RobecoSAM (LUX) Renminbi Bond Fund CNH Cls B CNH 122.06 - -0.61 3.13 Tosca A USD $ 306.65 - 4.15 0.00
Tel. +41 44 653 10 10 http://www.robecosam.com/ Veritas Global Real Return Fund A EUR € 12.03 - -0.10 0.12
Renminbi Bond Fund Euro Cls B € 110.04 - -1.89 3.76 Tosca Mid Cap GBP £ 253.12 - -6.14 0.00
Regulated
RobecoSAM Sm.Energy/A £ 11.15 - -0.31 1.61 Retail
Renminbi Bond Fund GBP Cls B £ 111.97 - -1.92 3.53 Tosca Opportunity B USD $ 346.98 - -10.49 0.00 Veritas Asian Fund B USD $ 207.65 - 0.23 0.00
RobecoSAM Sm.Energy/N € 11.36 - -0.44 0.00 Renminbi Bond Fund SGD Cls B S$ 111.44 - -1.93 3.48
Veritas Asian Fund B GBP £ 276.97 - -0.04 0.00
RobecoSAM Sm.Materials/A £ 115.87 - -3.01 1.43 Renminbi Bond Fund USD Cls B $ 111.68 - -1.91 3.29
Veritas Asian Fund B EUR € 228.03 - -0.22 0.00
RobecoSAM Sm.Materials/N € 134.27 - -4.94 0.00 Renminbi Bond Fund YEN Cls B ¥ 12671.97 - -215.15 0.00
Veritas China Fund B GBP £ 134.74 - 0.53 0.00
RobecoSAM Sm.Materials/Na € 92.66 - -3.41 - Renminbi Bond Fund USD Cls A $ 153.69 - -2.63 3.53
Veritas China Fund B EUR € 163.91 - 1.09 0.00
RobecoSAM Gl.Small Cap Eq/A £ 74.68 - -1.69 1.28 Renminbi Bond Fund GBP Cls A £ 148.97 - -2.55 3.78
Veritas Global Focus Fund B USD $ 17.08 - -0.11 0.00
RobecoSAM Gl.Small Cap Eq/N € 149.88 - -5.00 0.00 TreeTop Asset Management S.A. (LUX)
Renminbi Bond Fund SGD Cls A S$ 147.34 - -2.55 3.73 Regulated Veritas Global Focus Fund B GBP £ 21.02 - -0.19 0.00
RobecoSAM Sustainable Gl.Eq/B € 172.18 - -4.59 0.00 TreeTop Convertible Sicav
Renminbi Bond Fund YEN Cls A ¥ 18766.76 - -319.46 0.00
International A € 287.15 - -5.02 0.00 Veritas Global Focus Fund B EUR € 15.76 - -0.11 0.00
16 | FTfm
The week
C The acting head of the
Financial Conduct Authority
unexpectedly withdrew from
the race to become the chief
executive of the UK’s financial
regulator last week. The
decision by Tracey McDermott,
the acting chief executive since
her predecessor, Martin
Wheatley, was ousted by the
Treasury last year, leaves the
FCA rudderless at a time when
the watchdog faces
accusations that it has become
too emollient to the City.
C Greg Fleming, once
considered a leading candidate
to succeed James Gorman as
the boss of Morgan Stanley,
has left the US investment
bank after being sidelined in an
internal reshuffle. Mr Fleming
was head of both Morgan
Stanley’s wealth and
investment management
divisions until a rejig in October
last year. Dan Simkowitz took
over the investment
management division in
October. After Mr Fleming’s
decision to depart “to pursue
other opportunities”, Colm
Kelleher, the London-
based head of the
institutional
securities
business, has
assumed
responsibility
for the wealth
division .
C Ontario Teachers’
Pension Plan and the
Canadian Pension Plan
Investment Board intend to
hold on to their carbon-heavy
investments, amid increasing
pressure to divest.
The two Canadian pension
funds say they prefer to
engage with investee
companies, challenging them
to explain their business plans
in a world transitioning to a
low-carbon economy, instead
of selling fossil fuel companies.
Ontario Teachers’ Pension Plan and the Canadian Pension
Plan Investment Board intend to hold on to their carbon-
heavy investments — Daniel Acker/Bloomberg
FINANCIAL TIMES Monday 11 January 2016
NEWS
THE LAST WORD QUOTE OF THE WEEK
John Plender INSIDE AND Nicholas Smith,
There is no shortage of CLSA
lurking horrors to give ONLINE ‘It is one of the enduring
investors sleepless mysteries of corporate
nights. One of the Japan: why do shareholders
interesting things of badly underperforming VIDEO
about the economic companies keep voting Appetite for Greek debt
How keen is the market on
recovery is the extent their presidents back in
Tracey McDermott
to which it turns on again, year after share- Greece and is there hope
emerging markets price-crushing year?’ for bond prices to rise
C Another London-based PAGE 10 PAGE 6 VIDEO.FT.COM/FTFM
hedge fund is to return money
to investors because it cannot
make good enough investment
returns. Just weeks after
BlueCrest Capital Management
said it would return $8bn to
external investors, Nevsky
Capital is putting up the
shutters on its $1.5bn fund and
handing back the cash. Martin
Taylor, Nevsky’s chief
investment officer, says his
firm’s fundamental, research-
oriented investment process
will not work in “a world
dominated by index and
algorithmic funds”.
C Brevan Howard, one of
Europe’s largest hedge fund
managers, gave UK partners a
significant pay rise for the 2015
financial year, during which it
decimated its staff and posted
a loss on its flagship fund.
The firm’s UK accounts
revealed 37 members
of staff took home
a total of
£120.6m, up
from £85.3m
the previous
year.
C Scott Bessent,
the former chief
investment officer of
George Soros’s fund (pictured),
has raised $4.5bn for what will
be one of the largest hedge
fund launches ever. The money
raised includes a $2bn cheque
from his former employer.
C JPMorgan Securities has
agreed to pay $4m to settle
regulatory charges that it
misled customers about how
advisers in its private bank
division are compensated.