FRIDAY 5 JUNE 2015 WORLD BUSINESS NEWSPAPER UK £2.50 Channel Islands £2.80; Republic of Ireland €3.

00

M&A madness Toyota’s turnround Women gamers

Is the takeover boom a sign of Changing the culture of the world’s Breaking barriers in a male-
trouble? — GILLIAN TETT, PAGE 11 top-selling carmaker — BIG READ, PAGE 9 dominated industry — PAGE 12

Hong Kong Briefing

splits over i HSBC pays SFr40m to settle Swiss case
HSBC has paid SFr40m in compensation to the
Tiananmen Geneva prosecutor to resolve a money-laundering
probe into its Swiss arm, ahead of it giving a
strategic update to investors on Tuesday.
Tens of thousands of Hong Kong citizens — PAGE 15; ANALYSIS, PAGE 19; LOMBARD, PAGE 20
took to the streets last night to com-
memorate the 1989 Tiananmen Square i State to sell remaining Royal Mail stake
massacre, but activists are more divided Royal Mail is to be fully privatised with the sale of
than ever as the struggle for democracy the government’s remaining 30 per cent stake,
in the Chinese territory intensifies. worth about £1.5bn at the current share price, due
At the annual vigil in Victoria park, to begin this year. The 2013 share sale was criticised
many people lit candles as they remem- for giving taxpayers a poor deal.— PAGE 2
bered the students who were killed
when the Chinese government sent i BoJ invokes Peter Pan in deflation fight
tanks into the Beijing square to break up Bank of Japan governor Haruhiko
pro-democracy protests. Kuroda has used the example of Peter
But students at Hong Kong’s leading Pan as a way to highlight the need for
university broke away from the main a positive attitude in the bank’s fight
event, insisting they had no obligation against deflation.— PAGE 5
to the mainland and that “Hong Kong
people are only responsible for democ- i US federal personnel agency hacked
racy in Hong Kong”. Dale de la Rey/AFP/Getty
Hackers in China are suspected in a serious cyber
breach at the US Office of Personnel Management,
which has files on employees working at nearly
every federal agency.— PAGE 6

Greece to withhold €300m loan i Worldpay eyes £6bn valuation

Worldpay, the provider of secure payment services
for businesses, is seeking a £6bn valuation that
could make it one of the biggest UK flotations this
year.— PAGE 15; LOMBARD, PAGE 20

repayment in show of defiance i IMF warns Fed over early rate rise
The International Monetary Fund has urged the
Federal Reserve to wait until next year to raise
interest rates, cautioning that the US central bank’s
credibility was at stake.— PAGE 5

3 Athens to employ IMF procedure last used by Zambia 3 Pressure rises on prime minister
KERIN HOPE — ATHENS
PETER SPIEGEL — BRUSSELS
Greece has notified the International
Monetary Fund that it will not make a
scheduled €300m loan repayment
today after opposition to a bailout com-
promise with creditors erupted inside
the governing party.
Following a rarely used procedure
permitted under IMF rules, the Greek
government intends to bundle all the
money it owes in June, totalling €1.5bn,
and transfer it at the end of the month.
Alexis Tsipras, the Greek prime min-
ister, has come under intense pressure
from within his left-wing Syriza party to
withhold payment to the IMF as a sign of
the country’s defiance in the face of
terms required by its international cred-
itors to access a desperately needed
€7.2bn in bailout aid.
But as recently as early yesterday
morning, Mr Tsipras had signalled his
government intended to make the pay-
ment. Asked by reporters after a four-
hour meeting in Brussels with Jean-
Claude Juncker, European Commission
president, whether the instalment
would be paid, the Greek prime minister
said: “Don’t worry about that.”
Christine Lagarde, the IMF chief, had
also said earlier yesterday that she was
“confident” Athens would make the
payment and dismissed talk that Greece
would opt for the bundling option, last
used by Zambia in the 1980s.
But according to a Greek central bank
official, Athens made the request late
yesterday. The IMF confirmed the
i EPA study clears way for fracking
The US environmental regulator has concluded
there is no proof that “fracking”, the technique used
request, saying the rule allowed coun- The move ating tactic as well as a sign of a shortage to produce shale oil and gas, has caused widespread
tries “to address the administrative dif- of cash. “This move is almost unprece- pollution of the country’s drinking water.— PAGE 6
ficulty of making multiple payments in ‘raises the dented and, based on Tsipras’s com-
a short period”. stakes and ments yesterday, unexpected,” said Datawatch
However, senior IMF officials believe Mujtaba Rahman, head of European
that any non-payment by Athens would will further analysis at the Eurasia Group risk con-
be a political decision rather than a undermine sultancy. “It unnecessarily raises the Share of world goods exports
financial one; in an economy as large as stakes and will further undermine the % by value In 2012 developing
Greece’s, €300m is a relatively small the goodwill goodwill of Greece’s creditors.” 80 countries looked
sum and Greek officials had been work- Some officials believe Mr Tsipras will set to overtake
ing to raid undisbursed EU funds for
of Greece’s be forced to move to elections if he 60 advanced nations’
infrastructure projects to cover the pay- creditors’ accepts creditors’ terms. He was forced Developed economies share of global
40 trade. Now, with
ment as well as another €350m instal- to put off an expected second round of slower growth in
ment due to the IMF on June 12. talks with Mr Juncker to address his
20 some large
As a result, Greece’s decision — com- parliament tonight. emerging markets
ing less than 24 hours after Mr Tsipras Additional reporting by Shawn Donnan Developing economies
0 and lower prices
was presented with a five-page list of in Washington for oil exports,
policy commitments by Mr Juncker that Greek crisis page 8 1948 60 70 80 90 2000 10 14 that trend seems
Athens needed to implement to win the Letters page 10 Source: Unctad to have stalled
€7.2bn in aid — will be seen as a negoti- Philip Stephens page 11

Jobless benefits claims at 35-year low as

Wallenbergs warn Brexit
would be ‘very negative’
Sweden’s Wallenberg family, which
controls a business empire with a
value of €250bn, has said a British exit
would be damaging for Europe. ‘The
axis of London-Paris-Berlin changing
to Paris-Berlin would be a significant
change to the core of Europe. Britain
stands for a liberal economic stance
which I find very important,’ said Jacob
Wallenberg, head of the family’s main
investment vehicle.
Report i PAGE 16
fears rise over cuts for working families
SARAH NEVILLE — PUBLIC POLICY EDITOR
Britain’s culture of welfare reliance has
been transformed, with the proportion
claiming out-of-work benefits now at
its lowest for 35 years, according to an
analysis of official figures.
The data, published by the Resolution
Foundation, show that reliance on three
out-of-work benefits — unemployment
benefit, income support mainly for sin-
gle parents and disability support — has
been on a steady downward trend since
the mid-1990s.
The proportion of the working-age
population receiving one of the three
benefits peaked at 17 per cent in 1993,
but now stands at 10 per cent, its lowest
level since 1980. In 1996, just under
20 per cent of children lived in workless
households, a figure that now stands at
12.5 per cent. There are now fewer than
100,000 workless couples with children
where no adult is disabled.
Resolution’s findings suggest this
achievement has owed much to copious
financial support for working families,
which could be in jeopardy as the Con-
servatives consider how to implement
steep cuts in the welfare bill.
The expectation, said Resolution, was
that most of the £12bn savings sought
by George Osborne, chancellor, would
come from benefits for people of work-
ing age. In making the cuts, the govern-
ment “will need to ensure it builds on —
rather than reverses — the successes of
the UK’s approach to welfare over the
past few decades,” the foundation said.
It points to the decision, over 20 years,
to attach tight conditions to benefit
claims that have pushed people to seek
work and supported them through wel-
fare-to-work schemes.
In general, claimants have been
expected to meet far more stringent
behavioural conditions than in the US,
where the employment rate lags 5 per-
centage points behind Britain.
Paul Gregg, a professor of economic
and social policy at the University of
Bath and an associate fellow at Resolu-
tion, said the UK had made “great
strides” in improving its employment
record in recent decades, particularly
among families with children.
Adam Corlett, economic analyst at
Resolution, suggested the achievement
of successive administrations in
reducing out-of-work benefit reliance
had been almost completely overlooked
in the debate about welfare “which
sometimes feels like it’s stuck in a
time-warp”.
Targeted payments page 5
Skilled migrants page 11

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2 ★
Treasury flotation
Final public stake in Royal Mail to be sold
Cash raised will be used
to reduce debt as drive to
sell off assets gathers pace
GILL PLIMMER, ELIZABETH RIGBY
AND LAURA NOONAN
Royal Mail is to be fully privatised with
the sale of the government’s remaining
30 per cent stake due to begin this year.
Announcing a sell-off worth about
£1.5bn at the current share price, chan-
cellor George Osborne said there was
“no reason we should hold a minority
stake”. “Holding a billion pounds of
Royal Mail shares in public hands is not
a sensible use of public money.”
Royal Mail shares closed down 4.9 per
Chancellor brings forward £3bn in cuts
Osborne tries to spread
savings after OECD warns
him against stifling growth
GEORGE PARKER AND CHRIS GILES
— LONDON
MURE DICKIE — EDINBURGH
George Osborne has announced new
government cuts of £3bn — topped up
by £1.5bn of asset sales including the
Royal Mail — amid claims the Conserva-
tives risked misleading voters on the
size of the cuts to come.
The chancellor’s decision to bring for-
ward some cuts to this financial year will
ensure a slightly smoother path of defi-
cit reduction, addressing concerns of a
“rollercoaster” effect in which steeper
contraction in the next three years are
followed by higher pre-election spend-
ing in 2020.
Mr Osborne said yesterday: “When it
comes to living within your means, the
sooner you start, the smoother the ride.”
The Organisation for Economic Co-
operation and Development is among
the bodies urging Mr Osborne to spread
the cuts over the five years of this parlia-
ment, urging him to protect the poor
and not to stifle growth.
But Mr Osborne told the House of
Commons that he would deliver
planned savings of £30bn on schedule
by 2017-18 — including his plan to cut
the welfare bill by £12bn — to eliminate
the deficit.
Mr Osborne’s new Treasury chief sec-
retary, Greg Hands, has concluded his
in-year search for savings and the big-
gest cuts were offered up by Sajid Javid,
the Thatcherite business secretary.
Mr Javid has cut the amount of money
going to further and higher education
colleges by £450m; the Treasury said
the savings would be achieved by “fur-
ther efficiency savings” and under-
spends. His business department is also
saving £450m from its general budget.
The Ministry of Defence will be one of
the hardest-hit departments, having
promised £500m of in-year cuts. A
spokesman for the department insisted
operations would not be affected and
that the money would be found from
cutting down on external consultants,
travel and overtime by civilian staff.
Mr Osborne’s biggest challenge is
finding a promised £12bn of welfare
savings, even though much of the sav-
ings will fall on the working families that
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rights reserved. Reproduction of the contents of this
cent yesterday at 500p in reaction to the
announcement. The first sale of the
stock in 2013 was criticised for giving
taxpayers a poor deal after shares
floated at 330p rallied 38 per cent on the
first day of trading.
The news comes just days after the
Conservative government, emboldened
by a stronger than expected general
election victory, said it would sell its
remaining 19 per cent stake in Lloyds
Banking Group within 12 months, which
would raise about £13.6bn at the cur-
rent share price.
The sizeable sell-off programme will
grow next week when Mr Osborne is
expected to use his Mansion House
speech to lay out plans to privatise the
Royal Bank of Scotland. The £40bn
Deficit reduction. Budgets
Protesters Rachael Maskell MP, Unite’s Steve Turner, Sam Fairbairn, People’s Assembly, singer Charlotte Church and Amelia Womack, Green party — Ben Cawthra/ LNP
Tory manifesto commitments imply two years of spending cuts …
Total managed expenditure (£bn at 2015-16 prices)
800
780
760
740
720
700
2007- 2009-
08 10
Source: IFS
Financial years
he has promised to champion. The
chancellor told the Commons the Con-
servative government would be “full
square behind the working people of
this country”.
Ed Miliband, the former Labour
leader, returned to the Commons after
last month’s election defeat to say that
his party would judge Mr Osborne’s poli-
cies on his own “one nation” rhetoric.
Meanwhile, the Institute for Fiscal
Studies said yesterday that David Cam-
eron risked misleading the public dur-
ing the election campaign over the
amount that the state would be shrunk.
In a joint conference with the Institute
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FINANCIAL TIMES
NATIONAL
bank is 80 per cent owned by the state
after it was bailed out during the finan-
cial crisis.
The Treasury said the Royal Mail sale
would be “designed to deliver the best
value for money to the taxpayer”.
Although no further details were
announced, City experts said the gov-
ernment was most likely to sell the
remainder of the postal business in
tranches — rather than in one lot — as
with the sale of Lloyds.
Investment bank Rothschilds has
been appointed to advise on the deal.
Lazard, which advised the government
on its initial Royal Mail sell-off, had
been criticised for allowing its invest-
ment division to profit from preferential
share sales that netted an immediate
Conservative manifesto
commitments
2014- 2019-
15 20
for Government, the IfG said there could
be a public backlash against the Con-
servatives as reality sunk in about the
scale of the cuts needed.
At the same event in London, atten-
ded by officials from across the public
sector, the IfG also said the planned
spending cuts would be more difficult
than those between 2010 and 2015.
Carl Emmerson, deputy director of
the IFS, said the prime minister’s com-
ment that government needed to cut
only £1 in £100 “seriously underesti-
mates” the challenge ahead, as the pub-
lic sector faces many pressures to spend
more on servicing debt and pensions.
‘Black spider memos’
Bad hospital food pained the prince, letter to minister shows
MARK ODELL AND URSULA MILTON
Prince Charles railed against poor hos-
pital food and urged the government to
reduce “criminal wastage” by sourcing
from local farmers instead of serving
reheated meals, according to the latest
batch of his correspondence with min-
isters, published yesterday.
The heir to the throne’s intervention on
an issue that is often one of the main
grumbles about the National Health
Service was revealed in an exchange of
17 letters between the prince and four
government departments released after
a long legal battle.
The correspondence, the second such
batch to be published, has been dubbed
the “black spider memos” because of
the prince’s distinctive handwriting,
although the letters are mostly typed.
The letters cover subjects ranging
from rural affordable housing to a
regeneration project in Afghanistan,
controlling the spread of the poisonous
weed ragwort and a plea to fund alterna-
tive medicine.
In a letter in July 2008 to Alan John-
son, the health secretary at the time,
Prince Charles described an initiative at
£8m for clients at the same time as its
corporate advisory arm received £1.5m
for advising on the pricing of the shares.
An inquiry by Lord Myners into the
government’s handling of the sale exon-
erated Lazard and accepted the invest-
ment bank had put a “Chinese wall”
between the two divisions.
It is understood that Lazard was
invited to pitch for the role but decided
not to. Lazard declined to comment.
The Treasury declined to outline a
firm timetable for the disposal, but it is
expected to be completed this financial
year. Royal Mail said it “was a matter for
thegovernment”.
Roger Sumner-Rivers, founder of cou-
riers ParcelHero, questioned whether a
fully privatised Royal Mail “will be able
… and three more years of cuts to departmental budgets
Total departmental spending (£bn at 2015-16 prices)
450
Conservative manifesto commitments
400 (with £12bn of social security cuts
by 2017-18)
350
300
2.0% per year
250 average cut
200
2007- 2009-
08 10
Financial years
Once these unavoidable costs are
taken into account, government depart-
ments would have to cut spending 2.2
per cent a year for the next three years,
an acceleration of the 2 per cent annual
cuts during the past five years.
This spending assumption presumes
Mr Osborne will find all of the £12bn
annual cuts in working age welfare pay-
ments by 2017-18, Mr Emmerson said.
Because health, overseas aid and
schools will receive some protection,
the cuts to other services including
defence will be much greater, reaching
15.3 per cent in real terms during the
next three years. If defence spending is
the Royal Brompton Hospital in Chel-
sea, where fresh ingredients were
cooked on site, and urged the govern-
ment to replicate it elsewhere.
Referring to Mike Duckett, the “quite
brilliant” head of catering at the hospi-
tal, he told the minister: “Mike says that
buying seasonal, fresh (and wherever
possible, organic) food has ensured
patients enjoy better quality and more
flavourful food, which has retained its
natural nutrients and so their health
has, of course, benefited.”
He continued: “And because they
enjoy eating it, waste has been mini-
mized (which was enormous because so
Prince Charles’s letters have been published after a 10-year legal battle
to afford the urgent investment it needs;
or whether it will ultimately need to find
a buyer to secure its long term future”.
The CWU postal workers’ union
opposes the sale and said it would “con-
tinue to campaign against unfair com-
petition and the race to the bottom,
which privatisation inevitably brings”.
Chuka Umunna, shadow business sec-
retary, said the government “must show
how it has learnt the lessons of the
botched Royal Mail fire sale in 2013 so
thesamemistakesaren’tmadeagain”.
The Royal Mail sale is one of a series
by the Treasury aimed at reducing gov-
ernment debt. Earlier this year the
Treasury sold its 40 per cent stake in the
Eurostar cross-Channel train service for
£585m, almost twice the sum expected.
2.2% per year
average cut
2014- 2019-
15 20
kept constant in real terms, implying a
fall well below the Nato target of 2 per
cent of national income, the cuts else-
where would reach 18.7 per cent.
The Scottish government has
denounced accelerated UK spending
cuts as “completely and utterly unac-
ceptable”, a sharpening of rhetoric that
highlights diverging political trends
north and south of the border.
Opposition to austerity was central to
the platform on which the Scottish
National party won its landslide poll vic-
tory last month, and SNP leaders claim
this means there is no mandate in Scot-
land for Conservative spending cuts.
few people want the reheated food
boughtinbycateringcontractors).”
The prince was responding to a letter
from Mr Johnson, in which the health
secretary had provided him with gov-
ernment data showing that in 2006-7,
12,486,670 meals were wasted in the
NHS, or just under 9 per cent of all meals
served in the 12-month period.
Mr Johnson ended his letters to Prince
Charles “yours sincerely”, but his suc-
cessor at the health department, the
Labour leadership contender Andy
Burnham, was much more expansive,
closing his reply with the words: “I have
the honour to remain, Sir, Your Royal
Friday 5 June 2015
House of Commons
MPs urged to
forgo 10% pay
rise in face of
public anger
JIM PICKARD
— CHIEF POLITICAL CORRESPONDENT
Ministers have urged the Commons’
pay watchdog to abandon plans to
increase MP salaries by £6,700 as the
government hardens its stance against
the move.
There has been growing public anger at
the 10 per cent pay rise at a time when
the Conservative government is draw-
ing up a fresh wave of cuts to spending in
the autumn.
Chris Grayling, leader of the House of
Commons, wrote yesterday to the Inde-
pendent Parliamentary Standards
Authority to warn that the pay rise was
“not appropriate”.
Mr Grayling said the government had
opposed Ipsa’s plans when they were
first mooted two years ago and it had not
changed its mind.
The pay rise to £74,000 is due to
take place at the end of June and is part
of a package of changes that include a
reduction in certain other benefits for
MPs such as pensions and evening
meals.
However, the scale of the increase has
caused political controversy, with criti-
cism from both trade unions and right-
wing groups.
Earlier in the week David Cameron
appeared to bow to the inevitability
of the rise, aware that many of his
own MPs are keen for higher salaries
after several years of restraint. With a
majority of just 12 the prime minister is
not keen on antagonising his back-
benchers.
His spokeswoman said on Wednesday
that while he was opposed to the recom-
mendation, MPs’ pay was a matter for
the parliamentary authorities.
That was in contrast to ministerial sal-
aries, which have been frozen for the
duration of the parliament at Mr Cam-
eron’s behest.
Since then, however, the prime minis-
ter has come under pressure to inter-
vene — or to forgo the pay rise himself —
to send out a strong signal to Ipsa.
Nicky Morgan, the education secre-
tary, and Eric Pickles, the former com-
munities secretary, have both indicated
that they will not keep the pay rise.
The three leading candidates for
the Labour party leadership — Andy
Burnham, Liz Kendall and Yvette
Cooper — have also said they will
not accept the increase.
“I have always been clear that a 10 per
cent pay rise for MPs cannot be justified.
I won’t accept it. I will turn [it] down at
source or give [it] to local groups,” said
Mr Burnham.
Ipsa was set up in 2009 in the wake of
the expenses scandal and is deliberately
at arm’s length from parliament and the
government.
It has refused to back down from its
proposals. “We remain of the view that
it is right to increase MPs’ pay to
£74,000 for all the reasons we set out in
December 2013,” it said.
“Subject to any new and compelling
evidence arising from this review, we
therefore intend to implement the
determination as currently drafted.”
The group says MPs’ pay has fallen
comparatively to 78 per cent of the
salaries awarded to equivalent roles in
the public sector, such as colonels, sen-
ior civil servants and police chief super-
intendents.
Editorial Comment page 10
Highness’s most humble and obedient
servant.”
The prince also focused on affordable
housing. In a letter to Yvette Cooper,
then housing minister, he wrote: “I have
seen from my visits around the country
the real problems finding an affordable
home cause for those on low incomes in
the countryside.”
There is an unwritten rule that British
monarchs never speak out on political
matters, but Prince Charles has for dec-
ades sought to influence public opinion
on issues such as architecture and the
environment. “These letters show a
deliberate and persistent effort by
Prince Charles to interfere in the politi-
cal process, to demand changes to gov-
ernment policy,” said Graham Smith,
head of Republic, the anti-monarchy
campaign group.
Clarence House, the prince’s London
residence, said the latest letters were
released after the government decided
not to contest a second legal challenge
brought by the Guardian newspaper
relating to a Freedom of Information
request covering 2008-9. A first batch
was published in mid-May following a
10-year legal battle.
Friday 5 June 2015 ★ FINANCIAL TIMES 3

NATIONAL

Spending caps pit David against Goliath in Brexit vote

Ukip and other groups seeking Britain’s EU withdrawal are limited by referendum rules to much smaller budgets than Tories and Labour
JIM PICKARD
— CHIEF POLITICAL CORRESPONDENT
Campaigners for Britain to leave the EU
fear they will be outspent by their oppo-
nents under rules allowing a budget of
more than £25m for the referendum on
EU membership.
The cap on campaign spending in the
contest is more than four times higher
than for last year’s referendum on Scot-
tish independence, where participants
spent £5.2m — close to the £5.8m limit.
The rules also allow the Tories and
Labour to spend much more money
than smaller parties such as the UK
Independence party.
Eurosceptics are already braced for
big business and the trade unions to give
large donations to the Yes campaign in
favour of staying in the EU.
Many potential donors will not com-
mit funding until the result of David
Cameron’s attempts to repatriate sev-
eral powers to the UK through a renego-
tiation with European allies.
But Ukip acknowledged that in finan-
cial terms it would be a contest akin to
David versus Goliath. “There will be a
big imbalance in resources, without a
shadow of doubt. You can see that
already,” a party spokesman said.
The last referendum on the UK’s rela-
tionship with Europe took place exactly
40 years ago today. Then, pro-European
campaigners raised 10 times as much
money as their opponents.
“I don’t think it will be quite as
extreme as 1975 but yes they will have
more money and more organisational
clout,” said Ukip.
The rules governing
expendi-
ture, based
on the Politi-
cal Parties,
Elections and
Referendums
Act of 2000,
appear to
The Ukip No
campaign will
have a £3m
spending limit
History
How Yes campaign cruised
to victory in 1975 vote
Forty years ago the British public voted
to remain in the European Economic
Community by a margin of two to one.
Every county voted “Yes” to stay in
the bloc, with the exception of the
Shetland Islands and the Western Isles.
Britain in Europe, the Yes group, was
impressively well funded, backed by an
array of big corporate names such as
Debenhams and BP. In total it raised
£1.5m, or £11m in today’s money.
The anti-European opponents,
called British Business for World
Markets, had just £133,629, equivalent to
£1m today. Most of that consisted of
public funding.
Their total donations exceeded the
entire amount of spending in the
previous general election.
In the 1975 European referendum the
CBI spent £50,000 — equivalent to
£375,000 today — on literature,
organisation and promotion. The group
had polled 12,000 members, discovering
that only seven thought membership
was bad for business.
The list of donations from the
referendum reads like a roll call of big
British brands, many of which are still
going strong. Both BP and J Sainsbury
gave £25,000, P&O gave £20,000 and
the London Stock Exchange £26,000.
There were also smaller gifts, such as
£500 from Ladybird Books and £100
from Flymo. Jim Pickard
favour the Yes campaign to stay in the
EU.
The main Yes and No campaigns,
which have to register with the Electoral
Commission, can each spend £5m. Each
of the two designated lead campaigners
is entitled to campaign broadcasts, free
mailing to each voter or household,
access to public meeting rooms and a
publicly funded grant of up to
£600,000.
It has not yet been agreed who will run
the campaigns and whether they will be
dominated by the political parties.
On top of that there are further spend-
ing limits for the parties, outside the
main campaigns, based on their share of
the vote at the general election.
That means a cap of £5m for the
Tories, £4m for Labour, £2m for the
Liberal Democrats and £3m for Ukip.
Labour will almost certainly cam-
paign to stay in the EU, although some
said John Mills, eurosceptic millionaire
£1.5m and Labour donor, who is likely to
Sum spent by donate to the No camp.
the pro-Europe At the same time ministers have qui-
campaign in the etly reversed a law that would have
1975 referendum, banned pro-EU promotion by the gov-
equivalent to
£11m today ernment, local authorities and other
public bodies in the final 28 days of the
referendum campaign.
£133,629 That ban was in the original political
Sum spent by parties, elections and referendums leg-
anti-Europe islation. But the new government has
participants in
the 1975 vote,
inserted a clause into its EU referendum
equivalent to bill saying that the restriction on the
£1m today publication of promotional material by
government did not apply in this case.
“That is absolutely outrageous,” said
£25m Ukip. “Now there is nothing to stop, let’s
Campaign budget say, the European Commission sud-
for the next
referendum denly announcing that they are giving
broadband to the entire country on the
eve of the poll.”
Barbara Castle, In 1975 the pro-EU vote was bolstered
left, Labour’s by a wave of donations by IBM, ICI,
social services Rolls-Royce, Barclays, British Steel,
secretary, Ford and other corporate giants. Some
campaigns pro-European companies may be more
for leaving reticent this time round, however, for
the common fear of offending eurosceptic customers
market in 1975 and employees.
Keystone
The CBI employers’ group said its
members were clear that they wanted to
senior figures, such as leadership stay in a reformed EU. “The CBI has yet
favourite Andy Burnham, are arguing to take a final decision on spending or
that there should be an entirely separate officially registering with the Electoral
campaign organisation. Commission,” it said. “We will be look-
The party lost all but one of its seats in ing at any planned activities and seeking
Scotland in last month’s general election advice.”
after working closely with the Tories The unions are also expected to give
and big business in the “Better Toget- generously to the Yes campaign,
her” anti-independence campaign. although their commitment will also
Some Labour figures fear there could depend on the outcome of the renegoti-
be a similar loss of support to Ukip if his- ation process.
tory repeats itself. Mr Cameron is also “If what David Cameron brings back
expected to join the Yes campaign — from the renegotiations tilts the balance
subject to a successful renegotiation — even further away from standards for
although he will allow some Tories to workers, as the CBI wants, many organi-
make the opposite argument. sations traditionally in favour will cam-
In those circumstances the overall Yes paign for a No vote,” said Paul Kenny,
campaign would be able to spend up to general secretary of the GMB union.
£17m against a cap of £8m for the No The last UK-wide referendum was in
grouping. 2011, when the public voted against a
On top of that, any “registered cam- change in the voting system to an Alter-
paigner” can spend a further £500,000. native Vote method. On that occasion
“Those limits sound very high to me,” £5.7m was spent in total.
4 ★
Family court
Judge laments
divorce couple’s
£1m in legal fees
Former Russian beauty
queen awarded £320,000
a year maintenance
JANE CROFT
A leading judge has told a couple that
they could have avoided spending £1m
in legal fees by settling their divorce
fight out of court instead of battling in “a
very painful and wounding confronta-
tion in the courtroom”.
Former Russian beauty queen Ekate-
rina Fields, 42, and her American law-
yer husband Richard Fields, 59, were
fighting over about £6m in assets in
London’s family court.
Ekaterina Fields
was awarded £1.2m
to go towards
buying a London
property as part
of the settlement
It is the latest divorce fight between a
wealthy, international couple to come
before the courts. London is often called
“divorce capital of the world” because of
the generous financial awards it gives to
former wives.
Mr Justice Holman, who repeatedly
urged the couple to settle their differ-
ences during last month’s hearing,
bemoaned that the pair had spent £1m
on legal fees in their courtroom fight or a
quarter of the liquid assets available to
be shared.
“How tragic they could not identify a
fair middle ground,” he said, adding that
the money could have been “better
deployed”.
He was delivering a ruling where he
ordered Mr Fields to pay his former wife
a £1.2m lump sum to go towards buying
a London property.
FINANCIAL TIMES
NATIONAL
She had wanted to buy a flat in central
London because they had always lived
in Knightsbridge or Chelsea and the
judge ruled there was a limit to how far
out from central London she could be
expected to move.
Of the £6m liquid and illiquid assets,
Mrs Fields is set to receive £3.35m, with
Mr Fields retaining the rest, the judge
ruled.
Mr Fields will be permitted to keep
their flat near Central Park, New York,
as well as certain assets such as his Stein-
way baby grand piano, the judge ruled,
noting the lump sum would “clean out”
most of his liquid assets.
Mr Fields must also pay her £320,000
a year maintenance of which £100,000
Thames span
she will have to “stockpile” because the
judge said she was likely to outlive her
much older husband.
Rocky times
However, this sum was less than the
£400,000 annual budget Mrs Fields had
for Garden
asked for, which she argued was needed
to cover £50,000 for nannies and staff,
£60,000 for clothes, hairdressing and
Bridge project
beauty treatments and £75,000 a year
for holidays.
The couple and their two children had
spent £800,000 a year during 2010-11, Joanna
the last year of their marriage. They Lumley is
enjoyed a high standard of living — eat- a backer of
ing out in the finest restaurants, going the bridge,
on frequent holidays flying business depicted in
class and employing staff such as a cook. an artist’s
They also had three cars including a impression
Maserati and Range Rover, the judge
noted.
Mr Justice Holman ruled that it
was “most unreasonable” to expect
Ms Fields, a business studies graduate
who cares for the children, to go out
to work after he heard evidence that
she had “no realistic earning capacity”
and the most she could hope to earn
as a translator or estate agent was
£20,000 a year.
The Garden Bridge, billed as a
horticultural oasis in the heart of
London, can boast Boris Johnson, the
city’s mayor, the architect Lord Rogers
and the actress Joanna Lumley as
among its many high-profile backers.
The trust running the project has
already chosen the architect, designer,
engineers and construction groups, and
says the bridge will be ready to
welcome its first visitors in June 2018.
In recent days, however, the £175m
project has started to look like it could
be under threat. With opponents
mobilising their own prominent
supporters and using an array of legal
and bureaucratic tactics to place the
project “in a headlock”, the bridge has
become a battleground between those
who hail it as a visionary project and
those who decry it as a waste of public
space and money.
The Garden Bridge Trust says the
project “will provide a vital new route
between north and south London and
feature plants, trees, woodland and
meandering walkways to be used and
enjoyed by all”.
Lining up to oppose the bridge are
the Royal Society for the Protection of
Birds, the TaxPayers’ Alliance, local
Two-year tender
Revenue seeks partner for IT contract
GILL PLIMMER AND VANESSA HOULDER
HM Revenue & Customs is seeking a
private sector partner to help it man-
age the replacement of its multimillion
pound IT contract — the government’s
largest.
The Revenue issued the £40m two-year
tender this week and has advertised for
an external adviser to oversee the proc-
ess.
As part of the deal, outsourced staff on
its decade-old “Aspire” contract to man-
age hardware and IT systems will be
taken back in-house and the Revenue
will build an internal IT management
team. The government also wants to
award short-term deals with up to 400
suppliers to replace the longstanding
one with Capgemini.
Jessica Figueras, research director at
IT consultancy Kable, said Aspire,
which comes to an end in 2017, was not
just the UK’s but one of the world’s larg-
est contracts.
“We know that HMRC has been work-
ing with specialist advisers for at least a
year to design a replacement for Aspire.
That it is now seeking another partner
Fifa scandal
England ready to host 2022 World Cup if asked
KIRAN STACEY
— POLITICAL CORRESPONDENT
England is ready to host the 2022
World Cup if it is asked to do so in the
wake of the bribery and corruption
allegations surrounding the successful
bid by Qatar, the culture secretary has
said.
John Whittingdale told MPs yesterday
the country had the facilities to host the
tournament at late notice should Qatar
be stripped of its host status.
Mr Whittingdale said: “If Fifa came
forward and asked us to consider host-
ing it, we have the facilities in this coun-
try — and of course we did mount a very
impressive, if unsuccessful, bid to host
the 2018 World Cup.”
England bid for the 2018 tournament,
but was beaten by Russia, while the
2022 competition went to Qatar.
But in the past week, world football’s
governing body has been engulfed by
accusations that the process of awarding
those tournaments, and the sponsor-
ship deals attached to them, was cor-
activists, St Paul’s Cathedral and the
Green party, as well as figures such as
the artist Grayson Perry and Sir John
Tusa, arts administrator and journalist,
who has said it “sounds like a colossal
vanity project for Lumley, Johnson and
[chancellor George] Osborne”.
The complaints are many and varied
— that it will spoil historic views along
the Thames; that cyclists will have to
dismount so it is therefore not a
transport corridor; and that the money,
particularly the £30m each from the
Treasury and Transport for London,
would be better spent elsewhere.
Local campaigners have spoken this
week of hitting the bridge’s
construction plans. First, they
persuaded Lambeth council to
designate the site where the bridge will
land on the south bank as an “asset of
community value” — in effect blocking
the trust from sub-leasing the site for
at least six months.
In addition, a local resident dropped
a judicial review case against
Lambeth’s approval of the project after
the Garden Bridge Trust agreed to
provide a guarantee to cover the cost of
maintaining the structure, estimated at
£90m over its lifetime. Since the trust
to help it indicates there is still signifi-
cant concern. Given the chequered his-
tory of large government IT projects, it
will want to show that it has done due
diligence on this one.”
The move is in line with government
plans to use a larger number of suppliers
to deliver smaller contracts.
Under rules announced by the Cabi-
net Office that aim to foster innovation
and improve value for money, depart-
ments are not allowed to agree contracts
worth more than £100m.
The change is particularly significant
for the Revenue — Aspire has cost more
than £8bn since its launch in 2004,
accounting for 84 per cent of the Reve-
nue’s total spending on information and
communications technology for most of
this period.
It is hoped the new contract will cut
running costs by 25 per cent, but earlier
£40m £8bn
Tender issued by Cost of Revenue’s
HMRC to manage existing ‘Aspire’
the replacement contract since its
of its IT contract launch in 2004
rupt. Sepp Blatter announced on Tues-
day that he would stand down just days
after winning a fifth term as Fifa presi-
dent. Since then, Jack Warner, a former
vice-president, has promised an “ava-
lanche” of revelations about Mr Blatter’s
role not only in corrupt practices within
football, but also in influencing elec-
tions in Mr Warner’s native Trinidad
and Tobago. Fifa has not commented on
the allegations.
Mr Whittingdale said the disclosures
showed “the whole saga becomes more
murky and distasteful by the day”.
On Wednesday, the FBI confirmed it
was investigating the awarding of both
the 2018 and 2022 World Cups, prompt-
ing some to suggest England might bid
again for either of those tournaments.
Chris Bryant, Labour’s shadow cul-
ture secretary, said yesterday: “Would it
now not be wholly inappropriate for any
money to pass from UK broadcasters in
respect of 2018 or 2022 unless and until
Blatter has actually left [rather than just
declared he is leaving], Fifa is reformed
and the 2018 and 2022 bids are re-run?”
Friday 5 June 2015
has yet to find the full £175m in
funding, despite receiving £60m in
public funds, opponents point to a
big financial hole.
“The Garden Bridge Trust are
£50m short already on the money
they need . . . to build the bridge,”
said Michael Ball, who brought the
legal case. “It seems likely . . . they
will have great difficulty getting a
private supporter to put an
additional £90m on the line.”
London Assembly members
added to the criticism this week by
backing a motion calling on the
mayor to “agree to a full,
independent audit of the
procurement process, and to
withdraw TfL funds”. The motion
says the bridge “serves no transport
function” and that TfL support is
therefore inappropriate.
The Garden Bridge Trust is
undeterred. “We are pleased that
the judicial review between
Lambeth council and Michael Ball
has been resolved,” it said. “With
£125m raised and our preferred
contractors appointed, we continue
to make good progress.”
Barney Thompson
this year the public accounts committee
of MPs raised doubts over the Revenue’s
ability to manage the change and
warned that a failed transition “would
create havoc with the public finances”.
One of the biggest challenges will be
structuring and controlling a much
larger number of smaller contracts.
Under Aspire, Capgemini, the prime
contractor, had significant responsibil-
ity for the overall service and control of
other suppliers.
This will mean “HMRC needs to
quickly build a high-performing internal
management function, which would be a
serious and expensive undertaking”, Ms
Figueras said. “It may not even be possi-
ble to disentangle some of the infrastruc-
turefromitscurrentsuppliers.”
The Revenue said it was making “sig-
nificant progress in the phased transi-
tion from the Aspire IT contract”.
“The tender exercise . . . is one of
the steps in working towards the 2017
deadline. We have developed considera-
ble internal talent within HMRC, but
we will also use specialist external help
from the market and across govern-
ment to make this transition a success.”
The Football Association has been
keen to play down such suggestions so
far. Greg Dyke, FA chairman, said yes-
terday that it would be unlikely that
England would win a bid to host the
2022 World Cup if the 2018 competition
was held in Russia, which is part of the
same European grouping.
Mr Whittingdale accepted that analy-
sis, saying: “If Russia hosts the World
Cup in 2018 it does seem very unlikely
that another European country would
host it in 2022.” But his comments about
England’s readiness to do so if asked are
the closest any senior person in govern-
ment has come to talking about that as a
serious possibility.
Downing Street backed Mr Whit-
tingdale’s position, saying: “The prime
minister was very clear he wanted to see
Sepp Blatter go and to clean up the beau-
tiful game, and there is now the oppor-
tunity to do that and to clean up Fifa. As
the culture secretary was saying in the
House this morning, England already
has outstanding football facilities.”
Analysis page 5
Friday 5 June 2015
IMF cautions Fed against raising rates this year
Fund’s economists say data on economy still uncertain and central bank’s credibility at risk if volatility were to follow
SHAWN DONNAN — WASHINGTON
FERDINANDO GIUGLIANO — LONDON
The International Monetary Fund has
urged the Federal Reserve to wait until
next year to raise interest rates, caution-
ing that the US central bank’s credibility
was at stake and that there was too
much uncertainty to justify a much-
anticipated lift-off.
The IMF said the US economy should
grow 2.5 per cent this year despite a con-
traction in the first quarter, saying “the
underpinnings for continued growth
andjob creationremaininplace”.
But it warned that conditions were
still not right for the Fed to raise rates
for the first time in almost a decade and
Britain shows US the benefits of targeted welfare
UK’s better employment
rate suggests national
stereotypes need revisiting
SARAH NEVILLE — PUBLIC POLICY EDITOR
Once the US was viewed as an employ-
ment powerhouse in which a weak sys-
tem of welfare support drove people to
accept low-waged work.
The UK, in contrast, was the land of
welfare dependency in which a gener-
ous benefits system allowed some to opt
for a life of state-funded leisure.
Analysis by the Resolution Founda-
tion, shared with the Financial Times,
suggests that these national stereotypes
should now be reconsidered.
In the US, the employment rate now
lags around 5 percentage points behind
the UK. In Britain, however, the work-
less family — perennial preoccupation
of politicians, policy makers and tabloid
newspapers — is as rare as it was 30
years ago, unless a member of the
household is disabled.
Clues to the UK approach, and why it
has succeeded, can be found in Chorley,
a market town in England’s north west-
ern former industrial heartland. Ten
years ago, one in five families in the
town was workless, dependent for their
income on state benefits. Now little over
one in 10 families is without an earner.
At Coppull Spinning Mill, Chorley’s
past has met its future. The four-storey
red brick building, an Edwardian mon-
ument to a thriving cotton industry,
once formed the backbone of the town’s
economy. But competition from
cheaper products made overseas even-
tually priced Chorley out of the market
and left some families trapped in a gen-
erations-long cycle of unemployment.
Now the mill has reopened as Coppull
Enterprise Centre, an array of offices,
industrial units and workshops within
its cavernous, high-windowed space.
The spirit of entrepreneurship it
embodies is part of a wider story about
how decades of out-of-work benefit
dependency has declined under succes-
sive administrations, both Labour and
Conservative, over almost 20 years.
Britain, where William Beveridge
conceived the world’s first welfare state
Bank of Japan
Kuroda finds deflation hook in Peter Pan
PATRICK MCGEE — HONG KONG
ROBIN HARDING — TOKYO
Bank of Japan governor Haruhiko
Kuroda has revealed the inspirational
force behind the central bank’s unprec-
edented monetary stimulus: Peter Pan.
In opening remarks at a two-day confer-
ence on monetary policy, Mr Kuroda
said the power of conviction was among
the best tools in a policy maker’s kit.
“I trust that many of you are familiar
with the story of Peter Pan, in which it
says, ‘the moment you doubt whether
you can fly, you cease for ever to be able
to do it’,” he said.
“Yes, what we need is a positive atti-
tude and conviction. Indeed, each time
central banks have been confronted
with a wide range of problems, they
have overcome the problems by con-
ceiving new solutions.”
His remark is the latest in a series of
unusual analogies he has used to illus-
trate the BoJ’s fight against deflation.
The BoJ governor has previously com-
pared his policy to a rocket trying to
escape the earth’s gravity and US Fed-
eral Reserve chairman Paul Volcker’s
fight against inflation in the 1980s.
Mr Kuroda’s point is the same every
time: given Japan is starting from a very
that it ought to be mindful of the conse-
quences for the rest of the world.
“We believe that a rate hike would be
better off in early 2016,” managing
director Christine Lagarde said.
A Fed rate rise would have momen-
tous consequences beyond the US. Cen-
tral banks in emerging markets are
braced for the possibility of large-scale
capital outflows, as investors pull their
money from Latin America and Asia and
return it to higher-yielding US assets.
Investors fear the ensuing turmoil
could be worse than the “taper tan-
trum” caused by Ben Bernanke when as
Fed chairman he hinted at the tapering
of the Fed’s quantitative easing pro-
gramme in 2013.
as a contributory social insurance sys-
tem, offers few vestiges of his original
vision. Almost all benefits are now
means-tested, with strict conditions
attached to their receipt. People are
required actively to look for work, but
offered support and training to do so.
This stands in sharp contrast to the US
where most benefits are based on previ-
ous earnings, making it far harder to
implement this kind of conditionality.
Ben Norton, who runs the Bike Cabin,
on the Ropeway Arcade at Coppull Mill,
was made redundant after 17 years from
his job with a bicycle firm.
After six months the contributory ele-
ment of his jobseekers’ allowance —
unemployment benefit — ran out. After
250 failed job applications, he was “left
with nothing”, spurring him to set up his
own bicycle repair and sales business
with a £250 loan from the local council.
‘If one person in the
family is working . . . it
changes the dynamic
in the entire family’
Trade has built up slowly but is “start-
ing to get better . . . we want to be a tra-
ditional bike shop like there used to be
on every high street”, he says.
For those without desire or ability to
go their own way, the council provides
targeted support, linking employers
with a local college to ensure it is teach-
ing the skills the town’s businesses need.
Alistair Bradley, the council’s Labour
leader, is not above using council funds
to buy alarm clocks for young people
struggling with punctuality, aware even
a single working teenager in a house-
hold can have an impact on its culture.
“Because if one person in the family is
working, even if it’s the kid rather than
the parents . . . it changes the dynamic
in the entire family,” he explains.
One of the most dramatic divisions
between the US and UK is the percent-
age of women in the labour market.
The employment rate for UK single
mothers alone has risen from under 40
per cent in the early-1990s to 62 per cent
today, and it continued to rise through-
out the recent downturn.
Reforms introduced under the Clinton
administration attached time limits, job
low level of interest rates, the only way it
can stimulate the economy is by making
the public believe inflation will rise, so
confidence is crucial.
If the public anticipates higher infla-
tion it will lower real interest rates — the
expected return after adjusting for
inflation — and stimulate the economy,
making the expected rise in prices a self-
fulfilling prophecy.
With inflation stuck at zero, and the
BoJ’s attempts to fly looking more like
Wendy’s than Peter Pan’s, Mr Kuroda has
taken every opportunity to reinforce his
commitment to futureinflation.
Traders who trusted in Mr Kuroda’s
determination have been rewarded.
Believer: Peter Pan was able to fly
because he believed he could do so
★ FINANCIAL TIMES
INTERNATIONAL
A rate rise could lead to a sharp appre-
ciation of the dollar, which would hit EM
companies with large amounts of dollar-
denominated debt. Some economists
fear a wave of defaults which, in the
most exposed countries, could lead to a
full-blown crisis.
The IMF said that the Fed’s antici-
pated move had been “carefully pre-
pared and telegraphed” to the world
and financial markets, Ms Lagarde said.
“Nonetheless,” she added, “regardless
of the timing, higher US policy rates
could still result in significant market
volatility with financial stability conse-
quenceswellbeyondUSborders.”
Ms Lagarde declined to say whether
she had discussed the IMF intervention
State support. Enterprise
Picking up speed: Ben Norton, above, set up a bicycle repair and sales business with a £250 council loan — Roger Moody/Guzelian
Working age benefit caseloads
14 OECD countries (2007=100)
2007 08 09 10
Sources: OECD; ONS
Last summer he said there was “no
chance” of inflation falling below 1 per
cent. But when oil prices collapsed and
inflation retreated, eventually hitting
zero, the BoJ responded — on Halloween
— with the pixie dust of extra stimulus.
The BoJ argues that inflation is tem-
porarily low because of the oil price fall
but the underlying trend is up. As long
as Mr Kuroda thinks public expecta-
tions of inflation are holding up, he is
unlikely to add extra stimulus.
In a speech on Wednesday, BoJ board
member Sayuri Shirai explained how
she measures those expectations, in a
way that suggests the central bank is
unlikely to ease policy in the near-term.
Ms Shirai highlighted the distribution
of household expectations of inflation,
which has become more concentrated
around the BoJ’s 2 per cent goal and the
inflation expectations of large service
companies, which employ a lot of labour
and their price expectations are rising.
Given that policy comes down to
whether Mr Kuroda thinks the public
believes in his story, there is a wide
range of market opinion on when the
BoJ may act again. In Neverland, what-
ever Peter Pan wanted, he got. In his
determination to end deflation, Mr
Kuroda may be the same.
in US monetary policy with Janet Yellen, future resilience of economic growth” in
Fed chairwoman. But she insisted the the US and that the Fed’s credibility was
fund was not at odds with Ms Yellen, who at stake. “Raising rates too soon could
has said that the Fed would raise rates trigger a greater than expected tighten-
onlywheneconomicdatawereright. ing of financial conditions or a bout of
In its annual review of the US econ- financial instability, causing the econ-
omy yesterday, the IMF urged the Fed to omy to stall. This would likely force the
wait for “greater signs of wage or price Fed to reverse direction, moving rates
inflation than are currently evident”. back down toward zero with potential
“Based on the mission’s macroeco- costs to credibility,” the IMF wrote.
nomic forecast, and barring upside sur- “Given the balance in the likelihood
prises to growth and inflation, this would and severity of these risks . . . there is a
putlift-offintothefirsthalfof2016,”IMF strong case for waiting to raise rates
economists wrote, adding that they did until there are more tangible signs of
not expect US inflation to reach the Fed’s wage or price inflation than are cur-
2percenttargetuntil2017. rently evident,” economists said.
The fund warned that there were still Among the risks the IMF saw to
“significant uncertainties as to the growth was a dollar that, after rising 13
UK areas with largest fall in
share of workless households
Workless households as a % of total
Spain 175 2004
2013 0 10 20 30
Ireland Haringey
150 Dartford
Tower Hamlets
US
Chorley
125 Richmondshire
Boston
Tendring
UK 100 Arun
Ryedale
Germany Merthyr Tydfil
Mole Valley
Sweden 75 Watford
11 12
Brent
5
per cent in real effective terms over the
past year, was now “moderately over-
valued”. The strong dollar was already
weighing on US growth, job creation and
inflation, the IMF said. But there was a
risk that if policies to boost growth in the
US and abroad languished it could see
another marked appreciation, the fund
said, which “would be harmful”.
The IMF admitted that waiting for too
long to raise rates could lead to a “mod-
est overshooting” of inflation above the
Fed’s 2 per cent target and a faster tight-
ening. “But deferring rate increases
would provide valuable insurance
against the risk of disinflation, policy
reversal, and ending back at zero policy
rates,” the fund’s economists wrote.
search assistance, childcare support and
required work activities to one benefit,
Temporary Assistance for Needy Fami-
lies. Amid a booming economy, employ-
ment rates of single mothers without
college level education soared from 51
per cent to 76 per cent. By 2011, however,
this had retreated to about 54 per cent.
Although TANF caseloads are still low
and there has been a recovery in jobs
since the latest data, single parents in
the US have not recorded the same
steady improvements in employment
evident in the UK over this period, says
the foundation.
A typical UK success story is Annette
Dempsey, a mother-of-two in her early
40s, who took redundancy from her job
as a mortgage adviser to raise her
daughters, now 13 and 20. After four
and-a-half years out of the labour mar-
ket, including almost a year on benefits,
she sought help through a council-run
scheme called Chorley Works, which
sent her to update her computer skills,
then put her in touch with Lancashire
County Council, where she works as
part of the legal team pursuing parents
whose children have failed to attend
school. Of the support she received, she
says: “It’s just having somebody who
actually believes in you . . . to give you
that springboard and lift.”
Paul Gregg, professor of economic
and social policy at the University of
Bath, argues Ms Dempsey’s experience
and that of many others like her is “a
huge positive story for the economy
because you’ve got all of this productive
potential here which is not being lost”.
But if the UK prescription offers a
potential way forward for the US, it also
sounds a cautionary note for a Conserva-
tive government that has vowed to
reduce the annual benefits bill by £12bn
by 2017. Reducing the value of tax cred-
its, that have made it economically
worthwhile for people such as Ms Demp-
sey to work, or curbing Britain’s system
of maternity pay and rights, which has
kept so many connected to the labour
market, may yet jeopardise these suc-
cesses, warns Prof Gregg. The UK, he
argues, must now put as much effort
into eradicating in-work poverty as it
has done to tackle worklessness.
“The big social policy challenge over
the next few years is raising wages at the
bottom half of the distribution,” he says.
6 ★★★ FINANCIAL TIMES Friday 5 June 2015

INTERNATIONAL

Football in crisis Personnel office

Niche bank drawn into global Fifa scandal
Media company allegedly
funnelled sums through
Miami branch to officials
GINA CHON — WASHINGTON
Payments under scrutiny in the corrup-
tion investigations rocking Fifa at times
made up almost a quarter of all deposits
at a little-known bank’s Miami branch,
according to reports filed with banking
regulators.
Delta National Bank and Trust Com-
pany was used by Traffic International,
the sports media company through
which Brazilian businessman José
Hawilla allegedly paid at least $60m in
bribes to Fifa officials in exchange for
sponsorships and television rights to
football matches, according to a US
World Cup bids
indictment. Now that relationship is
dragging Delta, a niche bank whose
Miami branch is less than a mile from
Traffic’s US office, into the global scan-
dal surrounding the world’s most popu-
lar sport and highlighting the broader
probe into the banks used by suspects in
the investigation.
The sums passing through Traffic’s
account played an outsized role at
Delta’s Miami branch, according to the
Department of Justice indictment and
Federal Deposit Insurance Corporation
reports.
From 2006 to 2007, according to the
indictment, Traffic transferred at least
$15m from its Delta account in Miami to
Conmebol, the Fifa confederation for
South America.
That amounted to about 24 per cent
of the total deposits at the branch, which
after those transfers recorded a total
of about $57.3m in deposits for the year
to June 2007, according to an FDIC
report.
In the 2010-11 financial year, Traffic
transferred at least $22m from its Delta
account, representing about 17 per cent
Small banks such as Delta
often have fewer resources
to police the activity going
through their accounts
of total deposits at the branch. After
those transfers, Delta ended the year
with about $104m in total deposits.
On June 17 2013, another $10m was
transferred from Traffic’s Delta
account, with the bank ending the
June 30 2013 reporting year with
$102.6m in total deposits.
The Office of the Comptroller of
the Currency, Delta’s primary US
regulator, is probing the bank as part of
a larger federal investigation into finan-
cial institutions that held accounts
allegedly used in the Fifa scheme,
according to people familiar with the
case.
The scrutiny of Delta reflects authori-
ties’ growing concern about smaller
banks when it comes to money launder-
ing and other potential violations, espe-
cially as bigger banks hit with billions in
fines rein in risk, according to people
familiar with the case.
Small banks such as Delta often have
fewer resources to police the activity
going through their accounts.
Delta caters to wealthy residents of
Latin America, mainly offering private
banking services. It has only five main
offices, in New York, Miami, Geneva,
Grand Cayman and Paraguay, according
to its website.
A Delta spokesman declined to com-
ment. The OCC also declined to com-
ment.
The world’s biggest banks, including
HSBC, JPMorgan Chase and Citigroup,
have also been mentioned in the indict-
ment. Traffic USA had a bank account at
a Citi branch in Miami.
Delta has had run-ins with US law
enforcement officials in the past.
In 2003, the bank pleaded guilty in
a US district court in Maryland to
failing to file a suspicious activity
reports in relation to a money launder-
ing investigation linked to Colombian
drug traffickers.
Cyber breach
of US federal
staff records
blamed on
China hackers
GINA CHON — WASHINGTON
HANNAH KUCHLER — SAN FRANCISCO
Hackers in China are suspected of
being responsible for a cyber breach at
the US government’s human resources
arm that might have affected up to 4m
current and former federal employees,
according to people familiar with the
matter.
The FBI said yesterday it was investigat-
ing the breach at the Office of Personnel
Management, which processes security
clearances for federal employees and
contractors. The OPM said it would send
out notices to the millions of people
whose personal identification informa-
tion might have been exposed.
The OPM has personnel files on

Warner promises investigators an ‘avalanche’ of information
ANDRES SCHIPANI
— PORT OF SPAIN, TRINIDAD
JOHN AGLIONBY AND MALCOLM MOORE
— LONDON
One of the most powerful men at the
heart of a US investigation into the cor-
ruption scandals surrounding Fifa
threatened to unleash an “avalanche”
of evidence against Sepp Blatter and
world football’s governing body.
“I will give them my knowledge of finan-
cial transactions at Fifa including Sepp
Blatter,” said Jack Warner, who was
indicted by the US Department of Jus-
tice last week but is free on bail in
Trinidad.
“I will not stay quiet at age 72. I will
not stay quiet to allow them to deprive
me of my freedom,” he added.
Mr Warner made the claims in a tele-
vision broadcast entitled The Gloves are
Off. He said he would tell investigators
everything despite fearing for his life.
The one-time head of Concacaf, foot-
ball’s governing body in North and Cen-
tral America and the Caribbean, gave no
other details beyond saying he had doc-
uments and cheques that link Fifa offi-
cials, including Mr Blatter, to the 2010
Trinidad election.
“Not even death will stop the ava-
lanche that is coming,” Mr Warner told a
group of a few hundred supporters of his
Independent Liberal party at a rally.
“The die is cast. There can be no turning
back. Let the chips fall where they fall.”
The politician, who described himself
as a “man who has been publicly excori-
ated”, apologised for “not disclosing my
knowledge of these events before”.
Fifa declined to comment in response Jack Warner
to Mr Warner’s allegations. says he has
As well as receiving $10m from South documents and
Africa, via Fifa, as an alleged bribe, Mr cheques that
Warner also took A$500,000 from Aus- link Fifa
tralia as part of their unsuccessful bid officials,
for the 2022 World Cup. Australian including Sepp
police are now considering whether to Blatter, to the
open an investigation into the legiti- 2010 Trinidad
macy of that payment. election — Reuters
US investigators have also started to
examine the bidding process for the
2014 World Cup in Brazil, according to
the O Estado de S. Paulo newspaper. The
probe will focus on the relationship
between Jérôme Valcke, Fifa’s secretary-
general, and Ricardo Texeira, the
former president of the Brazilian foot-
ball association.
Corruption allegations now cast a
shadow on the 1998, 2010, 2014, 2018
and 2022 World Cups.
In Ireland, John Delaney, the head of
the Irish football association, confirmed
to RTE Radio that Fifa had paid Ireland
$5m in compensation for a handball by
Thierry Henry, the France footballer,
which led to a goal that prevented Ire-
land from qualifying for the 2010 World
Cup.
“We felt we had a legal case against
Fifa,” said Mr Delaney. “It was a pay-
ment to the association to not proceed
with a legal case.” Fifa described the
payment as a loan for a new stadium
that was subsequently written off. It
said the payment was made “to put to an
end any claims against Fifa”.
The revelations came after Mr Blatter
announced he was resigning after 17
years at the head of Fifa amid an escalat-
ing corruption scandal over the award-
ing of media rights and the selection of
Russia and Qatar to host the World Cup
in 2018 and 2022 respectively.
Mr Warner is one of 18 people to be
either indicted or to have pleaded guilty
to corruption charges brought by the US
Department of Justice. He denied all the
charges, which included a claim that
South Africa paid $10m into a fund con-
trolled by Mr Warner to influence the
voting for the 2010 World Cup, which
the African nation hosted.
South Africa has denied the funds
were a bribe, saying they were used for
the Dr João Havelange Centre of Excel-
lence, a football academy in Trinidad
and Tobago.
The South African police told the
Associated Press yesterday they had
opened a file into bribery allegations
surrounding the 2010 World Cup bid
after being given documents by an
opposition political party. The organis-
ed crime unit has yet to decide whether
to launch a full investigation, AP said.
Mr Warner claimed he knew why Mr
‘The die is Blatter had resigned and had urged him
to quit immediately rather than wait
cast. There until a replacement was elected, which
can be no might not be until March next year.
“Blatter knows why he fell. And if any-
turning one else knows, I do,” Mr Warner said.
back. Let Mr Warner has made incendiary alle-
gations before. In 2011 he promised a
the chips “tsunami” of allegations. His revela-
fall where tions included an email in which Mr Val-
cke appeared to accuse Qatar of “buy-
they fall’ ing” the right to host the World Cup.
employees working at nearly every fed-
eral agency. The Department of Home-
land Security said data from the interior
department, which manages federal
land, were also compromised.
The hacking incident is just the latest
in a series of breaches in the US govern-
ment, with the White House, the state
department and others reporting cyber
intrusions in the past year.
The White House has stepped up its
fight against hackers. This year, the
Obama administration said it would
impose sanctions on overseas individu-
als or entities that engaged in cyber
attacks that threatened US national
security or economic health.
This is not the first time the OPM has
been hacked. In March last year it dis-
covered a breach, while USIS, its main
contractor, which at the time handled
the background investigations for secu-
rity clearances, reported a hack in
August. OPM fired USIS and hired two
other contractors to handle the back-
ground investigations. One of them,
KeyPoint, reported that it suffered a
breach last December.
“Protecting our federal employee
data from malicious cyber incidents is of
the highest priority at OPM,” said its
director, Katherine Archuleta. “We take
very seriously our responsibility to
secure the information stored in our
systems.”
Jeff Wagner, director of security oper-
ations at OPM, told the Financial Times
in an interview this week before the
breach was announced that everything
stored on its networks was valuable.
“Our entire mission is people’s infor-
mation,” he said. “There’s nothing we do
that doesn’t involve personally identifi-
able information at some point. We are
the HR group of the federal government
so we have information on retirements,
health and insurance.”
Over the past year, OPM said, it had
made an “aggressive effort” to update its
cyber security that helped detect the
hacking incident in April. But it said the
breach “predated the adoption of the
tougher security controls”.
Jay Kapan, chief executive of Synack,
a start-up that links companies with
cyber security engineers, said it was
“fundamentally false” that government
agencies “have their act together” on
cyber security. “Government agencies
have just as much trouble protecting
sensitive data as the largest corpora-
tions in the world,” he said. The data
held by OPM were “extremely sensitive”
and could pose a risk to employees who
wished to remain anonymous.

US regulator’s report
Subscribe to FT Weekend today
Study finds little fracking effect on water but doubts remain
BARNEY JOPSON — WASHINGTON
ED CROOKS — NEW YORK
The US environmental regulator has
concluded there is no evidence that
“fracking”, the technique used to pro-
duce shale oil and gas, has caused
“widespread” pollution of the coun-
try’s drinking water.
But, in a long-awaited study, the Envi-
ronmental Protection Agency also
acknowledged a small number of con-
tamination cases, and said its conclu-
Read beyond the expected sions on hydraulic fracturing were not
definitive because of a lack of data.
FT Weekend brings art and culture to life through intelligent The study leaves the way clear for
and thought-provoking writing. Our editors bring the best of continued use of the technique, which
the world to you – from news and interviews, to extensive has made possible a spectacular revival
coverage of property, gardens, books, style, travel and arts. of US oil production and upturned the
Together with the award-winning How to Spend It magazine, world energy market.
there is something to delight all readers. Its conclusions will be closely studied
in the US and in other countries with
Subscribe now and save 23% at shale oil and gas resources.
ft.com/weekendsub The study provided ammunition for
supporters and opponents of fracking,
with the oil industry saying it proved it
was safe, and environmentalists arguing
it confirmed the dangers. The regulator
said: “While hydraulic fracturing activi-
ties in the US are carried out in a way
that have not led to widespread, sys-
temic impacts on drinking water
resources, there are potential vulner-
abilities in the water life cycle that could
impact drinking water.”
The EPA said it hoped the study
would help politicians, the industry and
the public, decide how to protect drink-
ing water resources.
The onus is on state policy makers
who lead regulation of the oil and gas
industry, partly because a 2005 law
associated with Dick Cheney, then US
vice-president, limits the federal gov-
Fracking involves pumping water, sand and chemicals into wells
ernment’s power over fracking. States
have taken divergent approaches. Texas
and North Dakota, two engines of the
shale boom, have done little to stand in
the industry’s way, but New York has
banned fracking over health concerns.
Barry Rabe, professor of public policy
at the University of Michigan, said:
“This study is likely to keep vigilance
over concerns about water fairly high. It
may be that states require more testing
of water before and after fracking.”
The EPA said it could not be sure
whether the small number of pollution
— Bloomberg
cases meant that effects on drinking
water were very rare, or whether they
had been underestimated because of
factors such as inadequate monitoring.
The US oil and gas industry said the
investigation showed that fracking was
safe. Erik Milito, of the American Petro-
leum Institute, said: “Hydraulic fractur-
ing is being done safely under the strong
environmental stewardship of state reg-
ulators and industry best practices.”
Michael Brune of the Sierra Club, an
environmental group, said the study
“confirms what millions of Americans
already know — that dirty oil and gas
fracking contaminates drinking water.”
The EPA said some fracking had led to
pollution of drinking water through var-
ious routes, including leakage of oil and
gas into underground water resources
and improper disposal of the flowback
water that comes out of shale wells
along with produced oil and gas.
It suggested there could be 100-3,700
spills of fracking fluids or other chemi-
cals used in shale gas production in the
US each year. However, the agency
added, not a single such spill reported to
it had so far been discovered to have
reached groundwater.
Friday 5 June 2015 ★ FINANCIAL TIMES 7
8 ★ FINANCIAL TIMES Friday 5 June 2015

INTERNATIONAL
GLOBAL INSIGHT
Greece crisis
UNITED STATES

Tsipras grounded by Syriza dissent Edward

Prime minister remains in
Athens to pacify growing
anger within his party
KERIN HOPE — ATHENS
After four hours of discussions with EU
leaders in Brussels on Wednesday night,
Alexis Tsipras was planning to return
today in the hope of sealing a new bail-
Luce
talks “constructive and friendly”. But a runs out at the end of June, he replied: est moves were a form of posturing by
senior Greek official said the Interna- “I’m optimistic, but only moderately.” Mr Tsipras to impress his party.
tional Monetary Fund, which was not
represented at the meeting, had
imposed new conditions that had not
In the meantime, Greeks continue to
withdraw cash from local banks amid
fears that capital controls might be
Even before Mr Tsipras returned,
members of Syriza’s extreme-left fac-
tion urged him to call an immediate gen-
Entry of rivals shows
been tackled in earlier negotiations.
Back in Athens, Mr Tsipras told aides
imposed if the negotiations run into
problems or if Athens is unable to pay a
eral election if the talks resulted in an
ultimatum from bailout monitors.
sands shifting under
that “extreme proposals are not accept-
able to the Greek government”.
“We must all understand how much
‘This
agreement
series of four loan instalments totalling
€1.5bn to the IMF this month.
Last week depositors pulled more
John Milios, leader of a new far-left
faction, the Red Network, called for
Greece to halt payments to the IMF and
Clinton’s coronation
people have suffered in the last five than €2bn out of their accounts, accord- impose capital controls.
isn’t in

out deal with creditors.
But Greece’s prime minister has been
grounded by a torrent of anger and
resistance from his own Syriza party.
Instead of flying to Brussels, he will
appeal to a restive parliament in Athens
today with his government — and the
country’s financial future — on the line.
“The overwhelming sentiment in the
[Syriza] parliamentary group will be
one of rejection,” Antonis Kamaras, a
Greek political commentator, said of the
bailout terms being offered by creditors.
“It’s hard to see how the leadership can
prevail.”
Mr Tsipras had called Wednesday’s
years and games must stop being played ing to two senior bankers. The outflows
at their expense,” he added. compliance resumed this week but in smaller
With members of Syriza’s far-left fac- amounts, they said.
tion already stridently denouncing the with Even though Greece’s central bank
creditors, the party could face a split if Syriza’s made clear yesterday that the cash-
the premier crosses his “red lines” on strapped government will not make a
pensions and taxes in order to strike a progressive €300m payment to the IMF due today,
deal with bailout monitors. platform Athens does have the cash to cover that
Alecos Kalyvas, Syriza’s economic bill, as well as another €350m instal-
strategy chief, said Greece faced big and it’s not ment due on June 12, according to Greek
problems and that “time was running going to officials with knowledge of the national
out”. But, he added, he “cannot accept” accounts.
more pensions cuts, energy price rises happen’ One such official said the government
and public sector job cuts. Panayotis had enough money to cover its full
Asked if a deal would be reached Lafazanis, €1.5bn in obligations to the IMF this
before the current bailout extension energy minister month, raising the prospect that the lat-
Public sector. Stumbling block
A
“We’re at a critical point, and I don’t
know if there will be an agreement. The
government is on a slippery slope . . .
and what I see ahead is blackmail,” Mr
Milios told a meeting of his supporters.
Panayotis Lafazanis, the hardline
energy minister and leader of the Left
Platform, insisted electricity prices
would remain unchanged. “This agree-
ment isn’t in compliance with Syriza’s
progressive platform and it’s not going
to happen,” he said.
“We’re a government of principle and
we won’t be responsible for doing such
great damage to the country.”
Philip Stephens page 11
ll of a sudden Hillary Clinton has company. A
month ago it was just her competing for the
Democratic nomination — what most
observers imagined would be a coronation.
Now there are four people in the field and
probably a fifth to join soon. It is hard to picture any of
Mrs Clinton’s rivals unseating her. Polls show her with a
50 percentage point lead over Bernie Sanders, her nearest
rival. But the sands appear to be shifting an inch or two
each week. On Tuesday Mrs Clinton’s favourability rat-
ings fell below 50 per cent for the first time since 2008,
according to a Washington Post-ABC poll. Her numbers
are still higher than any potential Republican opponent,
including Jeb Bush. But the direction is vexing.
Is Mrs Clinton in trouble? Not if you judge by the
chances of her competitors. Lincoln Chafee, the latest to
join the Democratic race, is the most quixotic of the lot.
Among the last of a dying breed — the northeastern
“Rockefeller Republican” — Mr Chafee turned independ-
ent in 2007 to run for the governor of Rhode Island. He
served one term, before moving to the Democratic party
in 2013. His claim to fame is that he was the sole Republi-

Athens holds out on pensions reform
Creditors push for leftist
government to alter what they
say is an unaffordable system
KERIN HOPE
After months of agonising bailout nego-
tiations between Greece and its credi-
tors, one issue has proven more fraught
than the rest: pensions reform.
At the insistence of the International
Monetary Fund, creditors are demand-
ing that Athens alter what they believe
is an unaffordable system; officials from
Greece’s hard-left, Syriza-led govern-
ment complain they have already made
adjustments and are threatening to
blow up the talks.
So how generous is the Greek
pension plan?
Until the crisis struck, Greece’s pay-as-
you-go state pension system offered
some of the most generous benefits in
the EU, with pensions in some sectors,
such as banking, rising to more than 100
per cent of final salaries. Tales of public
sector workers taking retirement as
early as 50 have infuriated citizens in
Germany and other creditor countries.
Now, after eight cuts in four years, the
situation looks very different. Main
pensions have been slashed by 44-48
per cent since 2010, reducing the aver-
age pension to €700 a month. Contribu-
tors to a supplementary scheme receive
a top-up averaging €170 a month.
Around 45 per cent of Greek pension-
ers receive less than €665 monthly —
below the official poverty threshold.
What reforms are the bailout
monitors demanding?
Despite the cuts to date, the system
needs a further overhaul to remain sus-
tainable over the long term.
The bailout monitors want Greece to
adopt a “zero deficit” system that would
end budget subsidies for the pension sys-
tem and ensure it remains sustainable
until 2060. They are pressing for across-
the-board cuts in main and supplemen-
tary pensions; the abolition of a special
monthly stipend for pensioners receiv-
ing the lowest benefits; an increase in the
Counting the retirement age to 67; ending special
cost: a customer arrangements that allow working moth-
pays for fresh ers and people in so-called “dangerous”
groceries at a occupations to retire early on full pen-
market in sions; and the merger of sectoral pension
Thessaloniki. fundsintothreemainfunds.
About 45 per
cent of Why didn’t the earlier reforms
pensioners now make the system sustainable?
receive less than Greece’s pension funds lost an estimated
€665 monthly — €25bn of reserves that were held in gov-
below official ernment bonds as a result of a debt
poverty restructuring in 2012. They have been
thresholds unable to replenish them.
Konstantinos Tsakalidis/
Bloomberg
Contributions to the system slumped
as unemployment soared above 25 per
cent. Meanwhile, outlays rose sharply as
more than 60,000 public sector workers
opted for early retirement, fearing their
jobs would soon be eliminated.
Even though benefits shrank,
employers’ and workers’ contributions
still remained high, discouraging hiring
in the formal economy. One reason the
costs are so high is because the sectoral
funds still run independently even
though they were nominally unified in a
2010 reform. As a result, the funds
employ more than 15,000 workers —
about twice the number needed — many
of them political appointees.
So why is the government holding
out on reform?
Opposition from powerful public sector
trade unions dissuaded a succession of
Greek governments from pension
reform, and many leading Syriza offi-
cials with a union background are deter-
mined to protect the current system.
The political cost of implementing
reforms would be high: Syriza came to
power promising pensioners there
would be no further cuts, while benefits
would be restored, starting with the 13th
monthly pension paid at new year.
Syriza’s economic team is willing to
make a start on reforms, however. It is
prepared to pass legislation that would
discourage workers from taking early
retirement before the age of 62 by cut-
ting their pensions by around 5 per cent.
To reduce rampant fraud and tax eva-
sion in the system, self-employed pro-
fessionals would make contributions
and receive benefits on the basis of their
taxable income, while contributions
would be collected by the tax authori-
ties — not the pension funds.
Isthereanyroomforcompromise?
It will be a tough negotiation. Cuts in
pensions are a “red line” that cannot be
crossed, says the government. But pen-
sion reform is a key issue for the bailout
monitors. Analysts in Athens say there
is room for the government to make
concessions: even hardline Syriza MPs
accept that the retirement age must be
raised. Even so, it will be hard for Alexis
Tsipras, prime minister to push a com-
promise through parliament.
can senator to oppose the 2003 Iraq invasion while Mrs
Clinton voted for it. But
Mrs Clinton has since
recanted. Mr Chafee’s
Is Clinton in
most original position is trouble? Not
that he wishes to convert
the US from the imperial
if you judge by
system to the metric. He the chances of
was mocked for it but
says he is not budging an
her competitors
inch. He is barely regis-
tering in the polls.
On paper, Martin O’Malley, the former governor of
Maryland and mayor of Baltimore, ought to pose a
greater threat to Mrs Clinton. Relatively young (52),
dynamic and liberal, Mr O’Malley has the credentials to
attract those parts of the Democratic base that mistrust
Mrs Clinton, or see her as a throwback. But Mr O’Malley’s
record was tarnished by last month’s riots in Baltimore,
which followed the death of a young black man at the
hands of the police. Though Mr O’Malley stepped down as
mayor of Baltimore almost a decade ago, it will be hard to
dissociate himself from a city that is now synonymous
with urban breakdown.
Jim Webb, the author
and former senator from
If Biden were
Virginia, is also a quixotic to throw his hat
prospect. Yesterday, he
described himself as “yet
into the ring, it
to announce”. But in a could seriously
speech at George Mason
University he made it
alter the dynamic
clear he was planning to
do so. He could attract a lot of the blue collar “Reagan
Democrats” who have fallen out of love with politics as
usual. Mr Webb, too, barely registers in the polls. Only Mr
Sanders, the first American socialist in living memory to
make a serious bid for the White House, is achieving dou-
ble digits. Yet it is hard to imagine the Democrats choos-
ing a septuagenarian socialist as their nominee. What,
then, does Mrs Clinton have to worry about?
She faces three problems. First, the US media is itching
to bring her down. So poor are relations between “Hillar-
yland” and journalists, that Mrs Clinton has avoided vir-
tually any interaction with the media since declaring in
April. Yesterday Lindsey Graham, the senator from South
Carolina, who has entered the Republican field, likened
Mrs Clinton to Kim Jong Un. “Well it’s easier to talk to the
North Korean guy than it is to her,” he quipped to Fox
News.
Second, more than half of Americans say Mrs Clinton is
“untrustworthy”. A majority also describe her as a
“strong leader”. Whether the first undermines the second
is an open question. Finally, the Democratic field remains
open. If Joe Biden, the vice-president, were to throw his
hat into the ring, it could seriously alter the dynamic. A
recent CNN poll gave Mr Biden 14 per cent support with-
out his having declared. For the time being, Mrs Clinton
remains the inevitable nominee. But it is beginning to feel
like a contest.
edward.luce@ft.com

Interview. Mustafa Akinci

Shared vision of two Cypriot leaders stirs fresh hopes of reconciliation

Presidents from both sides of
the ‘green line’ are in step, but
Ankara has yet to show its hand
PETER SPIEGEL — NICOSIA
Two ageing Cypriot politicians chatting
amicably on a terrace along the pedes-
trianised Ledra Street in Nicosia’s old
town would not typically cause a stir.
But when Nicos Anastasiades, Greek
Cypriot president, last month sat at an
outdoor café in northern Nicosia for a
coffee with his recently elected Turkish
Cypriot counterpart, Mustafa Akinci,
the symbolism was electrifying.
It marked the first time leaders from
the two communities that have shared
an island split for 40 years by a bitter
ceasefire had crossed the “green line”
together. The two then crossed over the
UN-administered buffer zone to the
southern side of the divided capital to
repeat the gesture. The giddy reception
they received on both sides of the Ledra
checkpoint verged on euphoric.
Much of that newfound elation is due
to the 67-year-old Mr Akinci, a long-
time advocate of reconciliation, who
came out of political retirement to stun
many by sweeping to victory in April’s
presidential elections. He did so despite
clear tensions with Ankara, which
maintains more than 30,000 troops in
the north.
“I belong to the same generation as
Anastasiades, and most people are
starting to regard this as a last opportu-
nity after so many lost hopes, after so
many disappointments,” said Mr
Akinci, seated in the grand reception
room of his presidential palace. “It
seems people feel they don’t want
another disappointment.”
There have been repeated reunifica-
tion false dawns, notably in 2004, when
Kofi Annan, then UN secretary-general,
brokered a compromise only to see it
overwhelmingly rejected in a referen-
dum by Greek Cypriots. Hopes rose
again two years ago with the election of
Mr Anastasiades, one of the few promi-
nent Greek Cypriot politicians to back
the Annan plan. But talks froze in Octo-
ber when Ankara sent a warship into
Cypriot waters.
But even battle-scarred veterans of
the dispute insist the atmosphere now is
different. “Nobody was expecting him
to be elected,” said a senior official close
to Mr Anastasiades. “For the first time,
we have a Turkish Cypriot leader with
the same end plan as the Greek Cypriot
leader.”
Greek Cypriots involved in the talks
say Mr Akinci’s openness also brings a
big new concern: his awkward relation-
ship with Recep Tayyip Erdogan, the
Turkish president. They view Mr
Akinci’s election as a sign that secular
Turkish Cypriots are growing uncom-
fortable with the increasingly religious
and tough-fisted leadership in Ankara,
and Mr Akinci is not shy in expressing
his desire for a break. “People said we
want more brotherly relations with Tur-
key rather than mother and baby,” he
said. “[We need] the kind of proper rela-
tionship that would enable the Turkish
Cypriots to stand on their own feet, to be
masters of their own institutions.” That
defiance earned an early rebuke from
Mustafa Akinci, right, and Nicos
Anastasiades in Nicosia last month
Mr Erdogan. “His ears should be listen-
ing to what his mouth says,” the Turkish
president said after the election.
More worrying for some in the south,
Mr Akinci was summoned to Ankara for
an audience with Mr Erdogan last
month shortly after peace talks
restarted. “Nothing went wrong,” Mr
Akinci said, insisting it was cordial. “I
made my views known to them. I had a
very good reception . . . Ankara gave all
her support for a solution.”
Greek Cypriots say they will remain
sceptical until those positive sentiments
from Ankara are put into action. But
both Mr Akinci and his southern inter-
locutors believe there is a new incentive
for Mr Erdogan to play ball: natural gas.
Four years ago, large deposits were dis-
covered off Cyprus’ southeastern coast,
and Nicosia is exploring pipeline
projects to export gas south to Egypt.
But Greek Cypriot officials say Turk-
ish energy companies have put out feel-
ers about building a pipeline north into
Turkey, a potentially more lucrative
route that would feed into the EU. “This
could be an incentive,” Mr Akinci said.
And what is the incentive of the Greek
Cypriots, who overwhelmingly rejected
the Annan plan and seem to hold all the
cards in the talks? Unlike their northern
neighbours, they already enjoy interna-
tional recognition, an international air-
port and membership of the EU.
Delicately, Mr Akinci points to the
south’s economic crisis that led to a
devastating eurozone bailout in 2013,
arguing that reunification could be a
spark for foreign investment.
“I don’t want to be seen as if I am glad
the Greek Cypriots faced all these eco-
nomic difficulties; I am not happy to see
that,” he said. “But at least it showed to
the Greek Cypriot people that being in
Europe does not cure all your problems.
Your economy is very much related to
what you do, rather than what others
do.”
Editorial Comment page 10
Friday 5 June 2015
Profits are up, sales are robust and the safety lapses of five years ago are a distant memory. But as the
Japanese carmaker embarks on a radical reorganisation just how real is its rebound in fortunes?
B
ack in 2010 Akio Toyoda
looked set to be ousted as
president of Toyota, Japan’s
biggest car group and the
company his grandfather had
founded. Only eight months into the job,
Mr Toyoda doubted that he would sur-
vive a mauling at the hands of a US Con-
gressional committee after a massive
recall of spontaneously accelerating
Toyota vehicles. At the time, the com-
pany was struggling to plug annual
losses of Y437bn ($3.5bn), while sales
had fallen 28 per cent since the financial
crisis to Y19tn.
Fast forward five years and Mr Toy-
oda’s position now seems unassailable.
The Japanese automaker is once again
sitting at the top of the global industry,
churning out record net profits of $17bn
on the back of annual sales of more than
10m vehicles worldwide. While its main
rival, Volkswagen, appears distracted
by a leadership spat.
Yet there is little sense of euphoria at
the company’s headquarters. “With
currency moves uncertain, we’re not in
a position to celebrate record profits,”
says one Toyota worker. His boss echoes
the caution: “There is still much left to
be done,” says Mr Toyoda.
The automaker has been one of the
biggest beneficiaries of Prime Minister
Shinzo Abe’s policy of aggressive mone-
tary easing, which has weakened the
yen. Currency moves accounted for 23
per cent of the $41bn in its total operat-
ing profits over the past two fiscal years.
But the currency benefits are starting
to fade as dollar costs rise from a decline
in the euro and other emerging market
currencies. Abenomics also comes with
strings attached as Toyota faces pres-
sure to reward its employees with
higher wages. It even dropped demands
for lower prices from its network of sup-
pliers to encourage pay rises to trickle
down to the auto sector as a whole.
Applying the brakes
Under Mr Toyoda, the automaker has
undergone a radical makeover. Break-
neck expansion – once a guiding princi-
ple – is now considered dangerous and
employees no longer dare use the
phrases “all-time high” or “No 1” in
front of the boss. He blocked the con-
struction of new plants for three years as
Toyota explored ways to make its busi-
ness more efficient. A race car driver
himself, Mr Toyoda pushed his engi-
neers to build better cars, denting their
pride along the way.
But as Toyota “paused” VW aggres-
sively expanded, setting a target to over-
take its Japanese rival by 2018. Analysts
widely expect VW to take the top slot in
vehicle sales as early as this year.
Toyota’s vulnerability is most obvious
in China, the world’s biggest car market,
where it lags behind European and US
rivals with just a 5 per cent share of the
market. Sales in China by Japanese
automakers are complicated by a
flare-up in a territorial dispute in 2012
that led to a consumer backlash against
Japanese goods.
“Toyota is fully rehabilitated and it
has a profitable business combined with
a cash-rich balance sheet,” says Howard
Smith, Tokyo-based managing director
at Indus Capital Advisors, which invests
in Toyota. “Now it’s time to start taking
more risk and spending money again.”
Executives confirm the period of soul-
searching is over. This year Mr Toyoda
chose February 24, the date of his US
congressional grilling in 2010, to mark
the beginning of production for its new
fuel-cell sedan Mirai, calling it a day “to
celebrate Toyota’s new start”. In April,
the carmaker announced plans to spend
more than $1.4bn to build new plants in
Mexico and China, lifting its three-year
moratorium on plant construction.
Analysts say the strength of its turn-
round will be tested as the company
rolls out a series of models over the next
few years using revamped vehicle plat-
forms and components. The project,
called Toyota New Global Architecture,
is expected to be launched with the new
Prius hybrid later this year, and cover
half of its vehicles by 2020.
The target, executives say, is to make
appealing and affordable cars using
common parts across continents and
vehicles in a shift from its traditional
practice of sourcing components mostly
from a close-knit group of Japanese sup-
pliers. Long term it wants to be nimble
enough to respond to market changes,
from a fall in demand to fluctuations in
the yen.
“Whether Toyota can take another
leap forward depends on the TNGA.
Everyone is both excited and nervous
since the Prius will be the litmus test,”
★ FINANCIAL TIMES
FT BIG READ. TOYOTA
By Kana Inagaki
Rebirth of a brand
$17bn
Toyota’snetprofitsin
theyeartoMarch,
achievedontheback
ofmorethan10m
vehiclesales
On the road says Keita Kubota, a Tokyo-based
again: Toyota’s investment manager at Aberdeen Toyota
new iRoad Investment Management. Operating profit (yen tn)
electric car, a Mr Toyoda was blunt in his criticism
production line when he took over the company in
at its Tsutsumi 2009. A frantic pursuit of sales volume,
plant, Akio he argued, had caused the automaker to
Toyoda and the lose touch with its customers, resulting
carmaker’s new in dull cars that sold in masses but failed
Mirai model to spark excitement. It was a concern he
Thomas Peter/Reuters;
Kazuhiro Nogi/AFP/Getty
had harboured, according to people
Images; Toshifumi who knew him, since he was overseeing
Kitamura/AFP/Getty Images;
David Paul Morris/Bloomberg
Asian operations in the mid-2000s.
His proposals were met with opposi-
tion from former executives and panic
among suppliers. “Everyone knew Toy-
ota was growing too fast. But it was only 2007 08 09 10 11 12 13 14 15
Mr Toyoda, because of his family back-
ground, who could make hard decisions
Share price (’000 yen)
and steer the company back to a normal
condition,” says a former executive.
Difficult decisions
Within a year of his appointment, Toy-
ota pulled out of Formula One racing
and shut down a plant in California that
employed 4,600 workers. Instead of
jobs, it cut spending in equipment and
production lines at home. It now spends
40 per cent less to build new plants com-
pared with 2008, and it can make 10m
vehicles using factory space for just 6m.
“For us engineers, it was tough that 2010 11
the president constantly kept saying
that we needed to build better cars since Sources: Thomson Reuters Eikon;
Thomson Reuters Datastream
many of us thought we had been doing
Mass-production source more parts from large global
Overhaul triggers race suppliers at lower costs.
“The TNGA initiative is a double-
among suppliers edged sword for parts makers,” says
Yasuhiro Mishima, president of Futaba
Analysts say the success of Akio Industrial, a Toyota supplier that makes
Toyoda’s attempt to create a “new exhaust systems and suspension parts.
global architecture” — dubbed TNGA — For those that can develop lighter
hinges largely on whether its parts and smaller components at cheaper
makers, some of which are wholly- costs, TNGA could entail big orders not
owned by Toyota, can become more just from Toyota but other carmakers
globally competitive. worldwide. At Futaba, for example, it
If they can survive on their own, it developed a super-slim silencer that can
would make it easier for Toyota to be produced faster using simpler and
23%
Percentageof
Toyota’soperating
profitaccountedfor
$1.4bn bycurrencymovesin
thepasttwoyears
Costofnewplantsin
MexicoandChina—
thefirstnewbuilding
inthreeyears
5%
ShareoftheChinese
carmarketheldby
Toyota
20%
Fallindevelopment
costsToyotaclaims
that all along,” says Mitsuhisa Kato, itsnewTNGAsystem
Toyota’s executive vice president. willachieve
“But the essence is in building even
better cars.”
3 That meant Toyota’s powerful chief
engineers had to adjust their way of
2 designing vehicles. To build cars more
efficiently, the engineers now co-ordi-
nate with other divisions and involve
1 parts suppliers early in the process. The
days of having 800 custom-made engine
0 types are gone.
“The TNGA won’t work unless you
break down the walls inside the organi-
-1 sation,” says Yuzo Ushiyama, president
of Tokai Rika, a Toyota supplier.
The 59-year-old Mr Toyoda, who dou-
bles as chief executive, also broke with
tradition recently by bringing in senior
officials from its network of suppliers
8 for the first time to redesign car-making
from the bottom up. He also promoted a
veteran from the factory floor to an
executive position in April, in an effort
6
to transfer traditional manufacturing
skills to younger employees.
Having deliberately put a brake on its
4 growth, analysts warn that Toyota must
now shake off its past.
“The question is how it will invest in
2 growth,” says Goldman Sachs analyst
Kota Yuzawa. “It needs to build more
12 13 14 15 plants and a slew of new products will
come out. Once it starts growing, Toyota
[then] needs to make sure it doesn’t
snowball out of control.”
more compact manufacturing lines. create opportunities for companies such
“Toyota tells us that we can’t be as Yorozu, a suspension system maker.
making products just for Toyota. So we Having worked with both Nissan and
need to secure more overseas clients,” Volkswagen, the company is used to the
Mr Mishima says. Futaba currently concept of modular designs.
generates about 70 per cent of its “The competition is fierce,” says
revenue from Toyota cars. Ryozo Ikeuchi, general manager at
For decades, Toyota has supported its Yorozu, which has already won some
tightly-bound community of 700 TNGA-linked orders. But for companies
subsidiaries and affiliates through that cannot make the cut, TNGA could
cross-shareholdings and preferential mean a significant loss in revenue.
business treatment. If the automaker “The impact of missing out on a
breaks with tradition and sources more Toyota product is unmeasurable,” says
parts from outside its family, it would an executive at one supplier.
9
Currency moves The weaker yen, a
byproduct of the aggressive monetary
easing of the Abe government, has
boosted Toyota’s exports and profits
Fear of change Akio Toyoda has met
internal opposition to his restructure
plans from executives and some
suppliers who fear losing business
US growth Toyota has benefited from
a rebound in the North American
market, which generated 27% of its
vehicle sales in the year to March
All the main carmakers are
wrestling with slower growth and
ballooning costs to develop energy-
saving technologies. Goldman Sachs
estimates that there will be an extra
$2,500 in costs per vehicle for every
manufacturer to comply with regula-
tions to curb carbon dioxide emissions.
Analysts say the TNGA project is Toy-
ota’s answer to those competing prob-
lems: an attempt to redefine the spine of
its production system to meet global
trends for quality, cheaper cars. Toyota
claims the system will cut development
costs by 20 per cent, with Mr Yuzawa
estimating the company can reduce
parts costs by $1,000 per vehicle, of
which half would translate to profit.
Spinal surgery
The Japanese carmaker unveiled
the concept three years ago after it
studied a similar effort in platform
sharing by VW. Renault and Nissan
have adopted a similar approach.
That it has taken three years to turn
the idea into reality – for instance, hav-
ing production lines that can be short-
ened or extended according to demand
– is not surprising. But what happens
next will determine its success.
VW has struggled to raise its profit
margin through platform sharing, with
its operating return on sales standing at
6.3 per cent last year, compared with
10.1 per cent for Toyota.
“TNGA will be considered a success if
Toyota can keep its profit margin,” says
Takaki Nakanishi, a former Merrill
Lynch analyst who runs his own
research group. “ In reality it will be very
difficult.”
Once the first vehicles produced using
the new platforms begin to hit the
streets later this year, analysts say the
big measure for Toyota will be whether
it can tackle its relatively weak positions
in China and India. The Japanese auto-
maker has traditionally been strong in
other emerging markets such as Thai-
land – a major production hub. Toyota
has also benefited from a strong
rebound in the North American market,
which generated 27 per cent of its annual
vehicle sales in the year to March.
“Toyota excels in selling quality cars
at high prices in the US, but it’s not good
at making low-cost cars,” Mr Nakanishi
says. Sales of its Etios compact sedan,
developed for the Indian market and
priced below $10,000, have slid since its
2010 launch.
The key challenge is China, where
Toyota sales topped 1m for the first time
last year – still a long way short of VW
and General Motors, which sold more
than 3.5m units each. It misjudged the
market, says Satomi Harada, senior
analyst at IHS Automotive, by pushing
models that did not cater to local tastes.
Japanese brands have yet to recover
from the dispute with China that has
poisoned relations between the coun-
tries. Even Nissan, the strongest Japa-
nese player in China, says it has lost two
years in development due to the dispute
over the Japanese-controlled Senkaku
islands, known as the Diaoyu in China.
“I’m not sure [even] today that some
parts of the market are accessible to Jap-
anese brands,” Carlos Ghosn, Nissan’s
chief executive, said recently.
When asked last month about its
weaker performance in regions outside
the US, Mr Toyoda insisted that its
efforts will eventually pay off in terms of
higher sales and profits. But five years
on from the recall crisis – which ended
with an apology and $1.2bn fine – the
presidential-like motorcade that follows
Mr Toyoda around underlines the
power he now wields after delivering a
strong turnround. Still, he believes, Toy-
ota has a long way to go, warning that it
tends to be too inward-looking.
“Because we are stronger, we must do
more now for our rebirth.”
10
FRIDAY 5 JUNE 2015
A pay rise for Britain’s
MPs is fully justified
But the number of lawmakers at Westminster needs to be cut
The days when voters treated British
MPs with deference are long past. Since
the 2009 expenses scandal, when
many legislators were exposed for
overclaiming on their parliamentary
allowances, the public has bracketed
them with bankers, estate agents and
journalists in the ranks of untrustwor-
thy professions. The popular recollec-
tion of that outrage is so strong that
some voters think that, far from receiv-
ing any remuneration for their work,
MPs should receive no salary at all.
It is no wonder therefore that many
lawmakers feel under pressure to
renounce a proposed 10 per cent
increase in their salaries from £67,060
a year to £74,000. This is being pro-
posed by the Independent Parliamen-
tary Standards Authority, an arms-
length body commendably set up by
the Commons after the 2009 scandal to
determine their pay. Labour’s leader-
ship candidates say they will not take
the money, while David Cameron,
prime minister, is calling on Ipsa to
reverse its decision. Yet the proposal is
reasonable and MPs ought to accept it
without shame.
The memory of the expenses imbro-
glio is not the only reason why MPs are
donning hair shirts. Although the UK
economy is growing well, many
incomes are barely rising in real terms.
Austerity remains the leitmotif of gov-
ernment policy and only yesterday
George Osborne, the chancellor,
announced £3bn of further spending
cuts this year.
However, Ipsa’s proposal is justified
for two reasons. First, MPs need to be
adequately remunerated if the Com-
mons is not to revert to what it was
before MPs were first paid in 1911: a
chamber dominated by the wealthy
who can afford a political career.
According to Ipsa, MPs’ pay is now
about 20 per cent below that of most
equivalent public sector professionals,
Erdogan pushes for
dominion in Turkey
Sunday’s election could decide the course of the country’s history
A great deal is at stake in Turkey’s gen-
eral election on Sunday, even if there is
little doubt that the ruling Justice and
Development party, or AKP, will win its
fourth straight victory since 2002.
Turkey’s voters are in effect deciding
whether to give Recep Tayyip Erdogan,
the three-times prime minister who
ascended to the presidency in August, a
near monopoly of executive power. At a
time of polarisation inside the country
and the jihadist threat lapping at its
borders with Syria and Iraq, and in
light of the president’s increasingly wil-
ful and authoritarian behaviour, giving
the AKP a majority big enough for Mr
Erdogan to rewrite the constitution
and fashion an executive presidency in
his image would be bad for Turkey.
The Islamist-rooted ruling party
would need to win 367 out of 550 seats
to change the constitution by itself, or
330 seats to put changing from a parlia-
mentary to presidential system to a ref-
erendum. In 2011 the AKP won nearly
50 per cent of the vote and 327 seats —
now reduced by attrition to 311. Mr
Erdogan, trampling on constitutional
rules of presidential neutrality, has
made an openly partisan pitch for 400
seats in his barnstorming rallies across
the country. That outcome is unlikely.
Not awfully reliable polls put the AKP
at around 43 per cent — its score in
local elections last year — although Mr
Erdogan went on to win the presiden-
tial election with 52 per cent.
The key variable on Sunday is not the
followers of Mustafa Kemal Ataturk,
founder of the Turkish republic, or the
far right nationalists, both trapped in
the last century. What could confound
Mr Erdogan’s ambitions is the People’s
Democratic party (HDP), which,
although a pro-Kurdish coalition, is
attracting support from secular Turks,
liberals and leftists.
The HDP, led by Selahattin Demirtas,
a personable young human rights law-
such as headteachers, mid-ranking
military officers and higher grade civil
servants. The proposed 10 per cent rise
is a one-off, after which MPs’ pay will
keep pace with average earnings.
Moreover, the planned rise is part of
a package in which other measures
penalise MPs. They will, for example,
lose generous pension benefits and face
further restrictions on their ability to
claim expenses. Taking these into
account, the entire package entails no
additional cost for the taxpayer.
If voters are angered by the expense
of politics, then MPs’ pay should not be
their target. Of far greater concern is
the fact that there are too many legisla-
tors at Westminster. The House of
Commons has 650 MPs and the House
of Lords has 760 peers. This means the
UK has more parliamentary lawmak-
ers per head of population than any
other country. China has a population
twenty times the size of the UK but a
legislature only double the size, at
about 3,000. For Britain to retain a
national parliament of this size in what
is also an era of significant devolution
to Scotland and Wales is hard to justify.
The prime minister should combine
higher pay with a reduction in parlia-
mentary numbers. He should accept
the Ipsa report but press ahead with a
commitment to cut the amount of MPs
from 650 to 600, however politically
painful that may be. The Lords, mean-
while, urgently needs paring back from
its excessive size, not least because the
government is now unfairly outnum-
bered by opposition peers.
In the meantime, the British public
ought to be drawing a line under the
now ritual vilification of politicians
that followed the expenses scandal.
Most MPs are hard-working, conscien-
tious and do a reasonable job for their
constituents. It is right that lawmakers
should be properly paid. But there
should be fewer of them.
yer, has said publicly he will oppose Mr
Erdogan’s plans for an executive presi-
dency. But he is taking a gamble. Previ-
ously, Kurds stood as independents,
because of the high threshold for entry
into parliament. Now, the HDP needs
to win more than 10 per cent of the vote
to get in, otherwise the AKP, the only
other viable party in Turkey’s predom-
inantly Kurdish southeast, will get a
windfall of something like 50 extra
seats — maybe giving Mr Erdogan the
numbers he is so desperately seeking.
Polls suggest the HDP, struggling to
dissociate itself from the 30-year insur-
gency waged by the Kurdistan Work-
ers’ party (PKK), is hovering near the
10 per cent barrier, and there are real
concerns the authorities may tamper
with the results to ensure it does not
surmount it. An activist initiative
spawned by the 2013 protests against
Mr Erdogan — Oy ve Otesi or Vote and
Beyond — is deploying a volunteer
army of vote monitors. That may deter
wholesale fraud, but vote-riggers prob-
ably need only tiny differences to
change the outcome — and the course
of Turkey’s history.
Mr Erdogan’s overlong spell in power
began as a sparkling success, an osten-
sible marriage of Islam and democracy
that was bringing Turkey (a Nato ally)
closer to Europe as its economy pow-
ered ahead. His taming of an over-
mighty army won wide support — until
it emerged prosecutors used illicit judi-
cial means to frame several generals.
He is now at war with the shadowy
Islamist allies who helped him do it,
and attributes all criticism to a plot to
do him and Turkey down. He has
leeched power from the cabinet, ridden
roughshod over the law, and perse-
cuted the media and private busi-
nesses. It would be disastrous were he
to accumulate further power — and the
means to bulldoze the few remaining
checks to his exercising it.
★ FINANCIAL TIMES
‘Creativity’ will not allow legal procedures to be bypassed
Sir, Lykke Friis’s Comment article
“Cameron should not hope for a
European fairytale” (June 4) on the
“1992 Danish Model” could lead to false
interpretations.
The heart of the Edinburgh
December 1992 package deal for
Denmark was indeed the “binding
decision” adopted by the heads of state
or government. According to Mr Friis,
this decision “gave Denmark the right
to opt out of several contentious
provisions” of the Maastricht Treaty,
without reopening that treaty. This
could not legally be the case, and it was
not the case.
If it had been the case, that decision
would have legally changed the treaty,
and all member states having already
ratified it would have been obliged to
ratify it again together with the
decision modifying it. In fact, the
Greece: in the final
hour, a plea for sanity
Sir, The future of the EU is at stake in
the negotiations between Greece and
its creditor institutions, now close to a
climax. To avoid failure, concessions
will be needed from both sides. From
the EU, forbearance and finance to
promote structural reform and
economic recovery, and to preserve the
integrity of the Eurozone. From
Greece, credible commitment to show
that, while it is against austerity, it is in
favour of reform and wants to play a
positive role in the EU.
In a letter to the FT in January,
several of us said: “We believe it is
important to distinguish austerity from
reforms; to condemn austerity does not
entail being anti-reform.” Six months
on, we are dismayed that austerity is
undermining Syriza’s key reforms, on
which EU leaders should surely have
been collaborating with the Greek
government: most notably to overcome
tax evasion and corruption. Austerity
drastically reduces revenue from tax
reform, and restricts the space for
change to make public administration
accountable and socially efficient. And
the constant concessions required by
the government mean that Syriza is in
danger of losing political support and
thus its ability to carry out a reform
programme that will bring Greece out
of the crisis. It is wrong to ask Greece to
commit itself to an old programme that
has demonstrably failed, been rejected
by Greek voters, and which large
numbers of economists (including
ourselves) believe was misguided from
the start.
Clearly a revised, longer-term
agreement with the creditor
institutions is necessary: otherwise
default is inevitable, imposing great
risks on the economies of Europe and
the world, and even for the European
project that the eurozone was supposed
to strengthen.
Syriza is the only hope for legitimacy
in Greece. Failure to reach a
compromise would undermine
democracy in and result in much
more radical and dysfunctional
challenges, fundamentally hostile to
the EU.
Consider, on the other hand, a rapid
move to a positive programme for
recovery in Greece (and in the EU as a
whole), using the massive financial
strength of the Eurozone to promote
investment, rescuing young Europeans
How an online
survey added
years to my life
Notebook
by Robert Shrimsley
Letters
decision merely recognised that the
four requests of Denmark were legally
in conformity with the Maastricht
Treaty. That decision contained five
articles, called “Sections” (A to E).
Section A was on citizenship of the
EU: it simply recalled that the new
concept of EU citizenship was not
substituting itself in any manner to the
national citizenship, which is true.
Section B was on the future
European currency: it recalled that on
this issue Denmark had already
secured a Protocol recognising that
Denmark would have the right to
notify to the EU its position on that: the
position could be positive or negative.
It was immediately noted that the
Danish position on the basis of that
Protocol was negative and that it would
not participate to the third stage of the
Economic and Monetary Union (Emu).
from mass unemployment with
measures that would increase
employment today and growth in the
future. This could both transform the
economic performance of the EU and
make it once more a source of pride for
European citizens.
How Greece is treated will send a
message to all its eurozone partners.
Like the Marshall plan, let it be one of
hope not despair.
Prof Joseph Stiglitz
Columbia University; Nobel Prize winner
of Economics
Prof Thomas Piketty
École Normale Supérieure; London School
of Economics
Massimo D’Alema
Former prime minister of Italy; president
of FEPS (Foundation of European
Progressive Studies)
Prof Stephany Griffith-Jones
IPD Columbia University
Prof Mary Kaldor
London School of Economics
Hilary Wainwright
Transnational Institute, Amsterdam
Prof Marcus Miller
Warwick University
Prof John Grahl
Middlesex University, London
For the full list of signatories see
www.ft.com/letters
Bank liquidity cut would
mean exit from eurozone
Sir, Martin Wolf looks at scenarios
following a Greek government default
(“Greece needs a deal before
midnight”, June 3). He says the
government would have to decide
“whether to try to remain inside the
eurozone, even without normally
functioning banks”, in the scenario in
which the banks have halted
withdrawals because the ECB has cut
their liquidity supply.
If the ECB ordered the Bank of
Greece to restrict liquidity to Greek
banks, this action would be
meaningless unless, simultaneously,
it restricted “Target 2” eurosystem
credit to the Bank of Greece itself.
The banks would then be unable to
clear foreign payments.
Without access to eurosystem credit,
Greece would not be part of monetary
union. There would be no scope for the
Greek government to try to remain
“inside the eurozone”.
John Whittaker
Economics Dept,
Lancaster University, Uk
Fantastic news. In just five minutes I
have taken 15 years off my age. It was
so easy. No exercise, no Pilates, no
10-week miracle programme — and
absolutely no acai berries. I just sat
down at my computer, answered a few
questions and, shazaam, I am 35
again. It was so easy I may do it all
again next year when I would
otherwise have reached 36.
It gets better. I am not merely 15
years younger but my chance of dying
in the next five years is just 0.6 per
cent. So there you have it — not only
am I further from death than I had
previously imagined — with a little bit
more effort I could still be a contender
for Young Journalist of the Year.
This happy news comes courtesy of
a new online longevity test calling
itself UbbLE (the upper case ULE
standing for Uk Longevity Explorer
and the bb, possibly standing for bio
bank). Ordinarily, I might be just a
touch sceptical about an online survey
that adds years to my life in just 13
questions — these things normally end
up trying to sell you vitamins. Indeed,
my faith in online quizzes in general
took a bit of a knock during the recent
election when several informed me
that my own political views were most
closely aligned with Labour, the
Conservatives or Liberal Democrats.
But this one is underpinned by
detailed research by two medical
epidemiologists at a reputable
Swedish university, and is reported in
The Lancet. Apparently, detailed
study of 655 health indicators
showed that these 13 questions offer
Section C was on defence: the
Maastricht Treaty made it possible for
EU states that were members of the
Western European Union (WEU) to
develop, if they so wished in the future,
their defence co-operation. This
section recognised that Denmark,
which was not a member of the WEU,
was not affected by that future co-
operation and will not participate to it.
Section D was on justice and internal
affairs, and merely said that Denmark
would “participate fully” in co-
operation in that domain, in
conformity with the provisions of the
Maastricht Treaty.
Section E contained final provisions,
dedicated to procedural questions.
The decision can be checked: it is
quite short and was published in the
Official Journal of the European
Communities, N°C 348/2. It is very
‘I see Tony Blair’s got a new job as an
irony consultant’
Carbon pricing will lead
to even greater benefits
Sir, The case for carbon pricing
(editorial, June 2) goes well beyond
simply reducing fossil fuel emissions by
replacing coal with gas.
Once carbon pricing is in place it will
be more profitable to plant trees than
to grow biofuels; it will be more
profitable to farm organically and build
soil carbon instead of continuing down
the path of soil degradation; meat
consumption will become more
expensive leading to reduced
consumption, reducing pressure on
land to grow animal feeds. The
externalised costs of fossil fuel-
dependent agriculture and forestry will
have to be internalised. This will
trigger changes that will benefit
biodiversity, water availability, animal
welfare, air quality and human health,
as well as reducing atmospheric CO2.
Craig Sams
Executive Chairman,
Carbon Gold,
Hastings, E Sussex, UK
End fossil fuel subsidies
without further delay
Sir, On June 1, six of Europe’s largest
oil and gas companies (BG, BP, Eni,
Shell, Statoil and Total) wrote to the
UN calling for carbon taxation. This
is a welcome development, signifying
that many major fossil fuel companies
now acknowledge the damage their
products do to the world’s climate and,
by extension, its inhabitants, present
the best statistical predictors of death.
Even so, I have my doubts. For
example, one of the questions is about
the number of cars in my household.
Having only one car would put an
extra two years on my age, which is
fine since we actually have two, but I
am now worried about what happens
when I take one of them in for a
service. Will I get older again? The
survey also stops short of offering
useful additional info like which cars
offer the most youthfulness.
I should, to be fair to the Swedish
professors (who when described like
that do sound like characters from The
Muppet Show), perhaps point out that
actually the new age offered to me by
the survey is referred to as my “Ubble
age”, which may not carry quite the
same weight as my actual age. It is, I
am told, not the figure relied on when
handing out free bus passes to the
elderly.
For men, the most reliable Ubble
indicator is the question: “How would
you rate your health?” Answering
“fair” rather than “good” added five
years to my age and saw my five-year
survival chances plummet from 99.4
to 98.9 per cent. So that’s the last time
I do that.
Surprisingly, though smoking is
included in the 13 questions, there are
none about diet, weight or alcohol
consumption. These are considered in
the deeper research but for the online
quiz are seen as less significant than
walking speed, one’s own sense of
well-being and ever having had a
serious illness. Anyone unhappy with
Friday 5 June 2015
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
important to recall today its real
content. One should not have the feeling
that a simple decision of the heads of
state and government could modify
even one word of the EU treaties
without having to follow the applicable
procedure for a treaty change.
Interpreting “creativity of the EU
system” as allowing legal procedures to
be bypassed would be wrong.
Contrary to what Mr Friis says, any
legally binding decision not in perfect
conformity with current EU treaties
would absolutely demand “full-blown
treaty change”.
Jean-Claude Piris
The writer was the Legal Counsel of the
European Council at that time, legally
drafted the texts and presented them
successively to the ministers of foreign
affairs before Edinburgh, and then to the
heads of state or government in Edinburgh
and future. Many commentators have
turned to the question of what the level
of tax should be, and whether there
should be regional variations. This
matter will take time to work out.
Immediately, however, all
governments can embrace the
companies’ change of position by
ending fossil fuel subsidies without
delay. Implicit in supporting carbon
taxation is that taxpayer-funded
subsidies to aid the extraction of fossil
fuels must end.
As with the ending of any public
support, it is a comfort for
governments to know the recipients
of such funds no longer see them as
desirable. The next step for the six
companies involved is to make public
their support to work proactively with
governments in consigning these
damaging subventions to history.
James Nix
Director, Green Budget Europe,
Brussels, Belgium
Helping Pakistan fight
its wealthy tax dodgers
Sir, You are right to highlight the cost of
Pakistan’s failure to collect tax
effectively (“Mass tax avoidance
threatens to puncture Pakistan
upturn”, June 4). People living in
poverty pay a high price for such
failure, because it leaves them without
clean water, decent roads, teachers for
their children and doctors when they
are sick.
UK prime minister David Cameron
acknowledged this problem four years
ago when he said in Islamabad: “Too
many of your richest people are getting
away without paying much tax at all —
and that’s not fair.” These strong words
would be more powerful if the UK
(along with other rich countries) was
doing all it can and should do to help
the government of Pakistan collect
more tax.
This is not just a question of
supporting the strengthening of
the country’s tax authority. The UK
should also help to break down the
global financial secrecy that currently
does so much to help Pakistan’s
wealthy tax dodgers. In addition, it
should help the country obtain
information on the accounts held by
its citizens in Britain and in other tax
havens around the world.
Joseph Stead
Senior Economic Justice Adviser,
Christian Aid
their outcome should walk faster, stop
smoking and not get diagnosed with
cancer. Simples!
While the research seems robust,
the online survey is clearly designed
to win media attention. In this it has
been a triumph. Most of the main UK-
based news outlets (the FT included)
have reported the research and linked
to the calculator, knowing that a
nation of cyberchondriacs will flock to
try it out. The quiz is engaging, though
serious scientists will have been
surprised by the lack of a “tweet my
Ubble age” button at the end.
UbbLE’s originators argue that it
helps inform the public of warning
signs and good behaviour. But while I
might decide to up my walking speed,
it also occurs to me that it might
encourage perverse behaviour. I had
decided, for health reasons, not to go
for a bacon sandwich at lunch, but now
it is clear that my near-term mortality
risk is so low I have a few per cent to
spare and can probably risk it.
Being neither a statistician nor a
doctor, I defer to experts on the full
research and while the questions seem
surprising they are probably in line
with the actuarial tables collated by
life insurers. One cannot help but
wonder, however, whether reputable
researchers should be offering these
surveys to audiences with a touch less
rigour than the readership of The
Lancet. In the hands of doctors these
questions could be useful; in the hands
of youngsters like me, however . . .
robert.shrimsley@ft.com
Friday 5 June 2015
Big profits signal big problems in the merger market
FINANCE
Gillian
Tett
T
his week America’s corpo-
rate world passed a mile-
stone. The value of deals in
US-bound mergers and
acquisitions amounted to
$243bn in May, according to Dealogic —
a monthly record. The previous
monthly peaks were in May 2007 and
January 2000, when deals worth respec-
tively $226bn and $213bn were struck.
Meanwhile, so far this year, $1.85tn
deals have been done globally; if this
continues 2015’s total could top the
annual record of $4.6tn deals s in 2007.
What should policy makers and
investors conclude? If you want to be
optimistic, you might see this as a wel-
come return of animal spirits. In the
immediate aftermath of the 2008 finan-
cial crisis, corporate executives were so
An offer that
Greece should
not refuse
GLOBAL POLITICS
Philip
Stephens
G
reece should take the deal.
The country’s creditors
have tabled what has all the
appearances of a final offer.
Alexis Tsipras’s govern-
ment should accept it. Athens will not
achieve better terms and the alternative
of default and likely exit from the euro
would be worse for the Greek people.
The signs are not encouraging. The
creditors’ proposals were hammered
out at a meeting hosted by Angela Mer-
kel. For all the Greek brickbats hurled at
Berlin, the German chancellor has been
more anxious than many to keep it
within the euro. She understands that
the geopolitical consequences of its
departure would reach well beyond the
inevitable financial shock. A fair infer-
ence would say Ms Merkel has pushed
the International Monetary Fund as far
as it will go.
Greece’s immediate response has
been that Mr Tsipras would be the one
presenting what officials described as a
“last, best offer”. A kind interpretation
would be that the prime minister has to
play the politics of managing anti-euro
hardliners in his own party; a harsher
one that he has still to realise it really is
one minute to midnight.
Human error is unforgivable when we shun infallible algorithms
OPINION
David
Siegel
M
ost of us like to make our
own choices on matters of
life, death and money —
and if we cannot decide
for ourselves, we would
rather turn to a human expert for guid-
ance than to an impersonal program.
Professionals of flesh and blood are
supposed to have a healthy sense of
responsibility and, when caught in a
dark corner, they can often illuminate
the way out with a creative spark. That
our fate might one day lie with deter-
ministic algorithms is for many people a
frighteningly dystopian vision.
It is a prejudice we would do well to
overcome. In a world awash with digital
information, algorithms are better than
people at analysing complex interac-
tions. What they lack in creativity, they
more than make up for in consistency
and speed.
scarred — and scared — that their prior-
ity was to cut corporate debt and costs.
But now the C-suite feels more ambi-
tious. And what is particularly striking
is that the current M&A frenzy is affect-
ing not just one industry, as during the
tech boom, but a wide range, including
retail, oil, pharma and tech.
But there is a second, darker interpre-
tation of this trend: namely that the
western financial system is drowning in
excess cash and credit. History suggests
such a scenario rarely ends well. After
all, the crucial point about the two pre-
vious M&A peaks is that they coincided
with equity and credit bubbles. Shortly
afterwards, those bubbles burst — with
painful consequences.
Moreover, the backdrop to the cur-
rent M&A flurry is unnerving. Since the
2008 crisis American corporate profits
have surged to record levels: Goldman
Sachs, for example, calculates that mar-
gins for the S&P 500 (excluding finan-
cials and utilities) are about 9 per cent.
In normal circumstances, that should
have sparked a corporate investment
boom; indeed, this is what policy mak-
ers have been desperately hoping to see.
When politicians promise the impos-
sible, the odds are that they will be
found out. That is what has happened to
the Syriza government. It offered the
voters a shortcut out of the country’s
dire economic predicament. They could
throw overboard fiscal retrenchment
and tough economic reforms and keep
the euro. Now it is evident Mr Tsipras
cannot deliver. More than that: the pain
is unavoidable with or without default,
inside or outside the euro.
Another miscalculation (or was it
hubris?) was to assume that other Euro-
pean states should be bound by the
choice made by Greek voters. Mr
Tsipras was given a mandate to seek
what he said was a better deal. No one
should have expected that the voters of
Madrid and Lisbon or Dublin and Berlin
would feel an obligation to agree.
Greece’s democratic choice does not
trump those of other eurozone states.
The negotiating strategy of the Athens
government has rested on the hope-
lessly flimsy assumption that Greece
has a better option if its creditors refuse
to bend to his demands. Economists can
argue about the theoretical impact of
default followed by a devaluation but, in
the particular case of Greece, the conse-
quences are probably all bad.
In the short term a return to the
drachma would see living standards fall
sharply and, with Greece locked out of
international capital markets, the gov-
ernment would be forced to generate
the fiscal surpluses it now balks at. Aus-
terity inside the euro would be replaced
by harsher austerity without.
Consider aviation, where mistakes are
often deadly. In the 1960s engineers fig-
ured out a way to address a particularly
common and catastrophic type of pilot
error. Sitting in the cockpits of mechani-
cally sound aircraft, while flying at the
right speed and maintaining full con-
trol, they would crash into a mountain-
side or the sea, apparently oblivious to
whatever had gone wrong.
Such accidents, which often resulted
in the loss of everyone on board, have
since been all but eliminated. The
ground proximity warning systems now
fitted to commercial aircraft can see
obstacles that pilots cannot, thanks to
comprehensive terrain maps and sen-
sors that work even in darkness and bad
weather. Equally important, they keep
track of the aircraft’s position and pre-
dict its path, so they are not taken off
guard by hard-to-detect dangers such as
terrain that rises more steeply than an
aircraft as it begins its ascent. And,
unlike pilots, they are never distracted
by other urgent matters, such as a fail-
ing engine or an instruction from air
traffic control.
In fields as wide ranging as medical
★ FINANCIAL TIMES
Comment
But that has not occurred. On the con-
trary, investment as a proportion of
operating cash flow has actually fallen
from 29 per cent to 23 per cent in the
past five years, Goldman says, appar-
ently because companies are gloomy
about the growth outlook.
This means they need to find other
uses for their cash. Many have poured
money into share buybacks: S&P 500
A darker interpretation of
the M&A boom is that the
financial system is drowning
in excess cash and credit
companies spent a record $133bn on
buybacks in April this year, BlackRock
says. They are paying hefty dividends,
too. Indeed, analysts project that com-
bined outlays on dividends and buy-
backs will exceed $1,000bn this year in
America, more than expected spending
on operations and research.
But, unsurprisingly, money is flood-
ing into M&A deals, too, as executives
Ah, but what about the long-term
gains to competitiveness from devalua-
tion? In all likelihood they would be
fleeting — lost to the dysfunctionality of
the political and economic systems.
Without the modernisation demanded
by creditors, including overhaul of a cli-
entelist and corrupt bureaucracy, a seri-
ous effort to collect taxes, the opening
up of closed professions, and reform of
public pensions, salvation outside the
euro would be a chimera.
There is plenty of scope for debate
about whether the specific fiscal targets
in the latest offer are plausible. I count
myself among those who think the
Greek government is probably right
when it says that the level of Greek debt
is unsustainable. The focus by the credi-
tors on precise numbers for fiscal and
Syriza’s laundry lists of
proposed structural
reforms remain, well,
laundry lists
diagnosis, meteorology and finance,
dozens of studies have found that algo-
rithms at least match — and usually sur-
pass — subjective human analysis.
Researchers have devised algorithms
that estimate the likelihood of events
such as a particular convict lapsing back
into crime after being released from
custody, or a particular business
start-up going bust. When they pitted
Technology beats people
on a good day — let alone
when we are sick, tired,
distracted or bored
the predictive powers of these programs
against human observers, they found
that the humans did worse.
And that, presumably, was on a good
day. Aside from their systematic fail-
ings, people get sick, tired, distracted
and bored. We get emotional. We can
retain and recall a limited amount of
information under the very best of cir-
cumstances. Most of these quirks we
seek eye-catching ways to show they are
earning their salaries.
Some bankers argue that this is not a
bad tactic; or not compared to the other
dismal options. “In our view, acquisi-
tions — particularly in the form of stock
deals — represent a more compelling
strategic use of cash than buybacks
given the current stretched valuation of
US equities,” says David Kostin of Gold-
man Sachs in a note to clients.
The problem for policy makers
is that this burst of M&A enthusiasm is
unlikely to deliver much of an economic
boost. Nor will it offer much long-
term value for shareholders, judging by
what happened in 2000 and 2007.
And what is doubly unnerving is that,
while the M&A drive was initially
funded by excess cash and stock, it now
seems to be more debt-fuelled too. This
week, for example, Dealogic also
revealed that corporate bond issuance
in 2015 has hit a record level of
$543.4bn. That has pushed the invest-
ment grade debt-to-equity ratio to 85
per cent, compared with 72 per cent in
2010.
The M&A bankers who are orches-
pension balances, however, reflects the
deeper loss of trust.
Targets for the size of the primary sur-
plus a year or two hence can be changed.
What matters are the circumstances.
The missing ingredient since Syriza’s
election victory has been any confi-
dence on the side of creditors that
greater fiscal leeway would be accompa-
nied by a serious commitment to over-
haul the country’s governance. Mr
Tsipras promised that, as an outsider, he
would sweep away the corruption and
cosy cartels. The impression he has
given since is that one set of clients is
being replaced by another.
If Athens wants other leaders to take
seriously its view that austerity is coun-
terproductive, the only way to do it is to
embark on the political and economic
reforms needed to underpin a return to
growth. Sure, this is more than a two- or
three-year project. But resolve and
direction count. No one would argue
with the slippage of a percentage point
here in the size of the country’s primary
surplus if the Greek government was
breaking up the oligopolies, cleaning up
cherish, but in a growing number of
domains we no longer need to tolerate
the limitations they entail. Nor do we
have much to gain from doing so. Yet we
seem determined to persevere, tending
to forgive “human error” while
demandinginfallibilityfromalgorithms.
Witness the hand-wringing over the
safety of driverless cars, even though
the National Highway Traffic Safety
Administration finds that human error
— not mechanical failure — represents
the “critical factor” in nearly all of the
traffic accidents that occur in the US
each year. People, it seems, would rather
place their trust in other humans —
whose logic and behaviour they know to
be flawed — than in hardware and soft-
ware that operates in a bias-free way.
This bias is, of course, just another
instance of the logical error that
humans struggle to avoid. There is
even a name for it: “algorithm aversion”,
a term three University of Pennsylvania
researchers coined in a 2014 study.
Even after witnessing algorithms
make more accurate predictions than
humans when using identical data, they
found, test subjects were quicker to lose
trating this activity insist that 2015 will
be different from 2000 or 2007. Chief
executives have learnt the right lessons
from history and are chasing only those
acquisitions that make strategic sense —
or so the argument goes. Separately,
some policy observers argue that this
M&A fever will naturally cool down
later in the year as the prospect of a US
interest rate rise draws closer. And who
knows? If economic growth continues,
companies may eventually start to
embrace investment with the same
gusto they currently embrace M&A or
buybacks.
But do not bet on that happening. The
more likely outcome is that, when
future historians look back to May 2015,
this $243bn record will be viewed as a
portent of an overinflated financial
world. This is an era when quantitative
easing is making the owners of assets
rich — not to mention boosting the
wealth of M&A advisers. But it has not
convinced anyone to believe in vibrant,
sustainable economic growth. That is
worrying indeed.
gillian.tett@ft.com
government and stamping out endemic
tax evasion.
Instead, Syriza has talked itself into
believing that the rest of Europe, and
above all Germany, is out to “punish”
Greece. Laundry lists of proposed struc-
tural reforms have remained, well,
laundry lists. The economy has gone
backwards. And, yes, in a way it does
now seem somewhat perverse to pre-
scribe more austerity.
There is no guarantee that even if a
deal is struck it will last. As long as Mr
Tsipras and his colleagues feel more
comfortable in blaming others for
Greece’s woes, the country’s prospects
will remain resolutely grim.
The consequences of Grexit for the
rest of the eurozone would be at the very
least dangerous. But here, sadly,
Greece’s partners are trapped in their
own paralysis. They know they must
turn a monetary into an economic
union, but lack the will to do so. This
does not look like a story with a happy
ending.
philip.stephens@ft.com
trust in the programs than in the human
forecasters. Logically, the reverse
should have been true. Apparently, we
are more willing to live with our own
predictable mistakes than to place our
trust in a demonstrably superior
method.
Humans have a long record of reject-
ing new evidence as paradigms shift in
uncomfortable ways. It probably does
not help that we were raised on dysto-
pian science fiction, or that public intel-
lectuals keep asserting that artificial
intelligence — shorthand, an old joke
goes, for almost anything a computer
cannot yet do — could cause the demise
of the human race.
The sooner we learn to place our faith
in algorithms to perform the tasks at
which they demonstrably excel, the bet-
ter off we humans will be. If the fear of
the unknown really is driving sceptics’
irrational bias against algorithms, then
it is the task of practitioners who do
understand their power (and limita-
tions) to make the case in their favour.
The writer is co-chair of Two Sigma, an
algorithmic investment manager
11
Skilled migrants
love the UK –
please show us
some in return
OPINION
Christopher
Phelps
I
don’t think they mean you,” a col-
league said when I mentioned that
my three children sometimes feel
discomfited by rising sentiment
against immigrants. Surely he is
right. They can’t possibly mean us.
Our family fits none of the stereotypes
associated with the word “immigrants”.
My wife and I are Americans. I am a uni-
versity lecturer, she a librarian. My fam-
ily has a straight line of descent to Eng-
land running through the 17th century
Puritans of Massachusetts.
Yet we are immigrants, with Ameri-
can accents to prove it, caught in the
maw of a culture that now fairly bristles
with antipathy toward migrants.
Even on the very day last month when
my family and I were granted indefinite
leave to remain, we experienced this
tension. On our way home from the
Home Office regional centre in Shef-
field, the first report on the radio was
David Cameron’s pledge to cap the
number of non-EU skilled migrants at
20,000 per year. Non-EU skilled
migrants means us.
Such policies are self-beggaring; they
will leave Britain the poorer. Consider
who is to be excluded. Skilled migrants
hold advanced degrees or other valua-
ble scientific, managerial or technical
skills. They must be sponsored by a Brit-
ish enterprise showing vital need for
their talents. Skilled migrants spend
amply and save money. Invariably they
transfer knowledge and skills to others
in their new surroundings.
In short, skilled migrants add value.
Capping their numbers stringently sim-
ply removes their talent from prospec-
The paperwork is
extraordinary. For
indefinite leave to remain,
we filled 84 pages of forms
tive employment pools — and concedes
it to competitors. Those who under-
stand this must speak out more avidly,
for an obsession with quantity above
quality is making for a highly irrational
immigration policy.
Already the country’s visa process has
become exceedingly off-putting. Take
the “Life in the UK Test”. Literally, you
can take it: past exam scripts abound
online. You will find it fun, until you
imagine yourself a migrant whose abil-
ity to maintain employment and resi-
dency actually rests on answering ques-
tions such as this: “Anne of Cleves, wife
of Henry VIII was a ______ princess [Ger-
man/French/Scottish/Spanish].” Mr
Cameron was unable to answer such
questions when put on the spot by the
American comedian David Letterman.
In what way is such trivia necessary for a
successful life in Britain?
The bureaucratic paperwork is also
extraordinary. For indefinite leave to
remain, we filled out 84 pages of forms
and listed every trip every member of
the family has taken since arrival in
Britain, obtained photos, procured let-
ters from our employers and gathered
years of pay stubs and bank statements.
Next come fees. A standard Tier 2 visa
starts at £564 (meaning £2,820 for a
family of five, like ours). To that is
added an annual healthcare surcharge
of £200 per person, or £150 per student.
After three years, visas must be
renewed, bringing new fees. At the fifth
year one may seek indefinite leave to
remain, for which our Home Office
charge was £9,500. Our total immigra-
tion fee expenses now exceed £15,000.
Please do not mistake my point. It is
not that I regret coming to Britain. I
appreciate being employed by an excel-
lent university. Students and colleagues
have exposed me to new ways of per-
ceiving American culture. My children
enjoy their fine comprehensive school.
What I lament is the drift toward rou-
tine derogation of migrants. Incessant
talk of “benefits tourism” rankles when
we migrants actually reduce the deficit.
Not only do we pay visa fees on top of
payroll taxes, but we tend to be younger
than the general population, making us
less of a drain on the health service.
Britain, once famed for its open soci-
ety, should reconsider its illiberal drift.
In a global age, being evermore constric-
tive is sure to cost it not only goodwill
but opportunities.
Oh, and Anne of Cleves? German, if
you were wondering.
The writer is associate professor of Ameri-
can studies at the University of Nottingham
12 ★ FINANCIAL TIMES Friday 5 June 2015

BUSINESS LIFE

Video games on the gender agenda Personal technology

Google Photos
App’s sharper focus on making
WORKING LIVES picture libraries fun to run
Emma
TIM BRADSHAW

Jacobs

K RHIANNA PRATCHETT
Women in the gaming GAMES WRITER
industry talk about being ‘Highlighting what is
in a minority and their achievable and desirable is so
optimism for more girls important in showing young
choosing it as a career women the opportunities’

O
nly 22 per cent of people
working in the games
industry are women,
according to research pub-
lished by the International
Game Developers Association last year.
The number of women playing games is
almost equal to men, according to the
Entertainment Software Association.
The disparity has been attributed to a
mix of factors: girls are discouraged to
pursue a career in video games, a poor
take-up of science, tech, engineering
and maths (Stem) subjects by young
women, and sexism. Last year the issue
was highlighted by the Gamergate con-
troversy, in which female games devel-
opers were harassed online for speaking
out against sexism in games.
Industry initiatives hope to bring
more women into the sector. In the UK,
Women in Games WIGJ is launching
a mentoring programme with mentors
from the likes of King, Sony and
Microsoft.
Rhianna Pratchett, games writer
The writer has been a gamer since the
age of six. Her path into writing for
games was through games journalism,
initially reviewing for Minx, a young
women’s magazine. She moved into
games, including work on three titles
with female protagonists — Heavenly
Sword, Mirror’s Edge and the reboot of
Tomb Raider.
Working in the industry, she says, has
been “hard” not because of gender but
“because traditionally games haven’t
been particularly story-led”. This is
changing, she says. Ultimately, diversity
of the workforce leads to greater creativ-
ity, she argues.
Ms Pratchett would prefer to focus on
the positive aspects. “Highlighting what
is achievable and desirable is so impor-
tant in showing young women the
opportunities.” It was one reason she
created the hashtag #1reasontobe, high-
lighting positives for women in the
industry, as a response to #1reasonwhy,
which highlighted sexism. It helped
spawn a Game Developer Conference
panel, showcasing prominent industry
women. While it is important to show
the darker corners of the industry, “it’s
equally important to show what’s worth
fighting for”.
Siobhan Reddy, co-founder and
studio director, Media Molecule
Growing up in Australia in a “feminist
household” instilled in Ms Reddy a
“belief I could do anything I put my
mind to”. Her teenage love of punk,
indie and grunge music showed women
could be strong. “If [Sonic Youth’s] Kim
Gordon could do it — so could I.” Making
music fanzines as a hobby ultimately led
her to the games industry. After work-
ing for female bosses at Perfect Enter-
tainment, and then Criterion
Games, she left in 2006 to
co-found Media Mole-
cule. The Surrey-based
company has made Lit-
tleBigPlanet and Tearaway for con-
soles PS Vita and soon for PS4.
The games industry, Ms Reddy
insists, reflects society at large. Her
games industry can do to bring
more women in . . . is to create
more experiences girls will fall
own experience in the industry has been
“largely positive”, she says. “I don’t
think I’ve experienced worse sexism in
games studios than in life out-
More views side . . . The sexist moments I have
Read a comment experienced I put down to the world
from Kate rather than games.” Female mentors
Edwards of the
International have helped overcome any anxieties
Game about being in a minority. “The way to
Developers change things is to be unafraid of being
Association the only woman in the room.”
ft.com/ One of the biggest hurdles is encour-
womeningaming aging young people to see the games
industry as a career path. “We had a
maths class come [to the studio] and
one of the girls felt that as a brilliant
mathematician her path was to become
an accountant. I have nothing against
accountants, but I introduced her to one
of our graphics programmers. Her eyes
lit up as she realised that she could apply
maths to something interesting like
games and she could get paid pretty well
for that too.”
Divinia Knowles (pictured left),
president and chief financial officer,
Mind Candy
After a career in interior design and
antiques, the move to Mind Candy,
developer of Moshi Monsters, was a
“shock”, says Ms Knowles. “It’s a
heavily male-dominated indus-
try and there were many times
when I was the only woman
in the room. At the board
level, there are very few
women. There are very
few female senior devel-
Only Google could think the demonstration of the
world needs another photo consumer benefits of
B SIOBHAN REDDY app. Only Google could pushing those boundaries.
CO-FOUNDER AND STUDIO DIRECTOR
bring its unique If you feel nervous about
‘The way to change things is to combination of intelligence trusting Google with your
be unafraid of being the only and arrogance to such a memories, Flickr’s latest
crowded market. And only update is a good, low-cost
woman in the room’ Google could come along alternative, but its auto-
and actually beat Facebook, tagging algorithms feel
Apple, Dropbox, Flickr, feeble next to Google’s.
K CHARLOTTE VORBECK Microsoft, Amazon and After giving Google a
SOFTWARE ENGINEER
countless others at their taste of my vast photo
‘Many of the most successful own game. collection — about 3,000
games have a similar style, they iPhone pics — I feel inclined
By deploying its huge cloud to hand over the rest. Simply
copy each other . . . There’s a computing power and its being able to find a picture
market in women and it’s scarily impressive machine by typing in the content or
stupid not to exploit it’ learning technology, Google context of an image, without
Photos promises to reinvent having to name or tag them
how we store, organise all, is remarkable. But
I SUNNI PAVLOVIC and share images — just Google Photos puts its
STUDIO MANAGER as long as we are algorithms to much greater
comfortable giving them use than just search.
‘One of the best things the all that data. Combining image
recognition with data
More stored contained in the images
Its first big idea regarding themselves, including
the app is free unlimited location and time, Google
in love with during their storage. For those of us who Photos created short
formative years’ have to delete old photos highlights albums of my
from our smartphones to days out in San Francisco
free up space to take more, and longer trips to Los
storage is a running battle. Angeles, Lake Tahoe and
For some time, Dropbox, New Orleans, complete with
Apple’s iCloud, Microsoft date and place markers.
OneDrive and Amazon have Another welcome feature
offered cloud-based storage. is short Gif-style animations
But all require some sort of based on a sequence of
subscription to store photos similar photos, such as (in
online, even if — as with my case) wildlife wandering
opers in the industry and Mind Candy.” very safe.” The business case is clear, she Microsoft and Amazon — around a national park or a
Young women do not realise that engi- says. “There’s a market in women and that means paying for one slideshow presentation at a
neering and computer science can lead it’s stupid not to exploit it.” of their other products, conference.
to “very creative careers”. namely Office 365 or Prime.
Mobile and casual gaming is bringing Sunni Pavlovic, studio manager, Two years ago, Yahoo’s
more women in as players, she says. Thatgamecompany Flickr offered a huge 1
“That is reflected in the diversity of the Sunni Pavlovic knew being a woman terabyte of free storage. But
games in the app store.” She says women would mean being in a minority. “I fig- now Google has trumped
are often the primary caregivers for ured I could look at that in two ways: as a even that, promising no limit
children so want games that are “snack- disadvantage or as an asset.” She chose at all for photos of up to 16
able and fit in with all the other things the latter. Joining a small but growing megapixels or videos at
they are doing”. Playing Candy Crush in company allowed her to help shape the high-definition 1080p
short bursts might prove more attrac- culture. Not everyone, she says, sees a resolution, which is more
tive than devoting an afternoon to Call of free bar as an employee benefit. than enough for most
Duty, though women do that too. In the past, she says, the industry did amateur snappers.
The games marketplace is competi- not do a good job of “welcoming women Of course, as with other
tive, she says, which means it is even into the ranks”. Skimpily dressed free Google products, the
more important that creators listen to female models used to be the norm at company will probably find
their audience and include employees of exhibitor booths, she notes. “You rarely ways of making money from These collections,
diverse backgrounds. “Different pers- see that any more.” your data that does not animations and other
pectives can create something magical.” When hiring a concept artist — to involve you opening your automatic tricks are
design a game’s visuals before develop- wallet. Although Google suggested in the “assistant”
Charlotte Vorbeck, software engineer, ment — she observed the best female says it does not currently tab for review before being
Wooga artists worked in animation houses. She plan to use Photos to inform added to the permanent
Now at Berlin-based Wooga, a mobile believes it was because as girls they its targeted advertising record, so if the Google
games developer, the 35-year-old’s path watched animated films. “One of the machine, its privacy policy machine misfires, you can
into the industry was via building web- best things the games industry can do to leaves that open, saying: just swipe them away.
site applications following a computer bring more women in . . . is to create “We may combine personal
science degree. She says she would not more experiences girls will fall in love information from one service Better organisation
want to work at a more traditional with during their formative years.” with information, including As someone who spends
games group as there are too many ster- The games industry “is not a mono- personal information, from vastly more time taking
eotypes. “Themes like fighting, saving lith”, she says. “It is an industry that other Google services.” pictures than organising or
the world, are just culturally way too thrives on innovation and disruption. That is an important sharing them, Google
different from the topics and ideas I am Good art and entertainment is about consideration when coupled Photos allowed me to
interested in.” telling stories . . . technology is just with Google Photos’ biggest rediscover my own
The industry’s lack of women means there to support it.” innovation: unsurpassed collection without having to
games suffer from “groupthink”. “Many image recognition. Not only do more than allow the app
of the most successful games have a sim- emma.jacobs@ft.com can Google categorise your to upload it.
ilar style, they copy each other. It feels Twitter: @emmavj photos without you having Actually getting the
to label them or put them photos off my phone and
into albums, it can even into the cloud did take
stitch together animations several hours and a few

The workplace cyberbullies whose weapon is a smartphone based on groups of similar

Email and social media
make potent threats easier,
writes Emma Jacobs
The emails were “hostile and constant”.
Jane Allen, a sales representative for a
medical company in the US, would
spend half a day responding to her boss,
defending herself from cruel smears. It
got to the point that she would dread
checking her inbox for fear of the latest
humiliation. “I would see an email
come in [on my phone] and I’d become
physically sick.”
With children and a mortgage to pay,
Ms Allen, who does not want to use her
real name, felt unable to quit her job. So
she stuck it out until she could find a
new position.
“I felt like I was in a battlefield.
Always on the defence and the bullets
were fired at me.” Ultimately, it affected
her ability to sleep, hit her confidence
hard and led to depression.
Ms Allen, who is now employed else-
where and is considering taking her
previous employer to court, feels that
the emails were a form of cyberbully-
ing, and different from conventional
workplace bullying.
Emails are particularly pernicious,
she says, as they are there to be read
and reread. It meant that Ms Allen —
who depended on her phone to keep in
touch with head office and colleagues
while out on the road — felt her perse-
cutor was always with her.
Researchers typically define work-
place cyberbullying as a situation where
an individual is repeatedly subjected to
perceived negative acts conducted
through technology — email, websites,
social media — that are related to their
work context. Samuel Farley of the
Institute of Work Psychology at Shef-
field University management school in
the UK, is researching the issue.
In the UK, the conciliation service
Acas elaborates on how this might man-
ifest itself in social media: “Inappropri-
ate photographs, offensive or threaten-
ing comments or sensitive personal
pictures and learn to
identify the photographed
attempts; for larger libraries
the process could take days.
But the effort is still tiny
individuals — even, it claims, compared to the
children as they age. organisational benefits.
information might be posted vindic- problem of de-individuation — you Critics scorn Google’s
tively. A manager or an employee might focus on screens and become less empa-
be targeted. The victim may, or may thetic. It can lead you to send some-
further incursions into our
privacy just as it comes
The verdict
Not only has Google proven
not, be aware that they are being bul- thing you wouldn’t say to their face.” under intense scrutiny from there is more innovation left
lied.” For example, while they are likely Nancy Willard, who works in the US European regulators. Yet in photo apps, it seems it is
to see a threat that is emailed to them, on anti-bullying campaigns for chil- Google Photos is a brilliant also way ahead of its peers.
they may not see comments about dren, agrees. “Technology tends to inc-
them on a social networking site. rease the emotional tenor. There’s
Gary Namie, a social psychologist and
Hate mail:
potentially a greater audience — online,
Planet of the apps
technology
director of the Workplace Bullying more people might see it.”
tempts people to
Institute in the US, says cyberbullies are Many victims suffer in silence, says for iOS and for Android.
send say things
often aggressive in a way they never Mr Farley, because they perceive cyber- After launching the
in messages they
would be face to face: “Technology bullying as an issue affecting younger excellent Outlook email
would not utter
makes it so much easier to be hateful people in school rather than working client and buying Sunrise, a
in person
and cruel from a distance.” adults. Consequently, it may be an popular calendar app,
Unlike bullying in person, the fact under-reported issue in the office. Microsoft this week acquired
that we carry our smartphones around “No one knows what the levels are,” What it is the German company
with us means that cyberbullies can he adds. Wunderlist, free for most behind Wunderlist, one of
penetrate the safe havens of people’s Anastasia de Waal, deputy director at mobile and desktops the best to-do list apps.
homes. think-tank Civitas, says the consistent For its 13m users,
In some cases a cyberbully can be theme is that “cyberbullying is very dif- Why you should try it Wunderlist works across
anonymous, unlike in Ms Allen’s situa- ficult to control and can spread Windows Phone may be nearly every mobile and
tion where the perpetrator was clearly quickly”. lagging far behind in the desktop platform
traceable. If you think you are the target, she smartphone wars, but (BlackBerry owners miss out
Mr Farley says that technology may says, keep a record: “It’s a good way to Microsoft is really upping again) and even has a
exacerbate aggressive behaviour. observe a pattern.” And ultimately, to its game in mobile apps decent Apple Watch app.
“When you work remotely there is a report it to your employer.
Friday 5 June 2015 ★ FINANCIAL TIMES 13

ARTS

Boorman delivers
impeaching, expelling disapproval.
Filmmaker Johanna Hamilton does
a cracking job of blending “then”
and “now” (archive and newsreel foot-

another mythic tale

age with modern interviews and recon-
structions), not to add blending
investigative seriousness with sour
satiricalwit.
Black Coal, Thin Ice won the Berlin
Golden Bear last year, pipping Boyhood.
What drugs were the jury on? Diao
Queen and Country (15) Yinan’s wild sprawl of a Chinese thriller-
FILM John Boorman drama is part whodunnit, part cop
AAAAE procedural, part love story, part social
Nigel satire. The parts are as disjointed as
Andrews 1971 (no cert)
Johanna Hamilton
the body segments strewn across
far-sundered coal depots, which lead
AAAAE the police to believe — duh! — that a
serial killer with mining connections
Black Coal, Thin Ice (15) mightberesponsible.

M
yth. How does a director
get it on screen? Does he
find myth or make it?
Does he stalk it like a shy
animal, mug it like a bur-
glar invading his home — or manufac-
ture it fromscratch?
Britain’s John Boorman became a
major director by making popular cin-
ema — genre cinema — yield up its
mythic DNA. His best two early films,
Point Blank and Deliverance, a crime
drama and a wilderness thriller, rejoiced
in the mythic richness of quest, ordeal,
mystery, redemption, enlightenment.
His career faltered when he tried manu-
facturing his own myth-world, in the
lunatic Zardoz, then flatlined with two
honourably aimed movies grounded in
universal legend and folklore: Excalibur
(King Arthur) and The Emerald Forest
(noble savagery and the sanctity of the
jungle). Something had gone missing.
These films were beautiful but obvious:
open-cast myth mining. Where were the
earlier films’ teasing tunnels, deceptive
shafts and hocus-pocus tricks with art-
versus-populism?
Then Boorman made his best film
THE LIFE OF A SONG
Our series traces the origins and incarnations
of hits from
‘Downtown’ to
‘Enter Sandman’.
Read the stories at
ft.com/life-of-a-song
and listen to podcasts
with song clips at
ft.com/culturecast
Diao Yinan
AAAEE
Spy (15)
Paul Feig
AAEEE
since Deliverance. Hope and Glory was a
childhood memoir and much, much
more. Narrating a boy’s growing up dur-
ing the second world war, based on his
own boyhood, the film sent search-party
themes down every vein of its story. Into
Englishness, war, city-versus-country;
into family and growing up; into “hope”
and “glory”. Now Boorman has made
Queen and Country, the promised sec-
ond part of his life story.
Sometimes it’s less than Hope and
Glory: a little tamer. But at best it has the
multi-layered mythic richness of good
Boorman. His teenage alter ego Bill
Rohan (Callum Turner) leaves home,
serves in army boot camp, romances a
girl (Tamsin Egerton), gets up to tricks
with fellow squaddies, goes home on
breaks and finally — without serving in
Korea — for good.
It’s a string of little jewels masquerad-
ing as a story. The army-life escapades,
climaxing in the stealing of an officers’
mess clock, might seem picayune. But
theyformacumulativeglitter.Thisisthe
Arthurian story with a wink and
a nod: the sword of a boy’s self-
determination pulled from the stone of
precedent and authoritarian protocol.
Acts of prankishness become mini-
heroic as “time” is literally stolen:
the time it takes, thieved from hours
Glitter: Callum of institutional regimentation, to
Turner and becomeoneself.
Brían F. O’Byrne For his play-the-devil companion,
in ‘Queen and Turner’s protagonist has the hilarious,
Country’. Below volatile Caleb Landry Jones — a Texan
right: Melissa actor gorblimeying a kind of English
McCarthy in accent — and for goofy-magisterial
‘Spy’ authority figures David Thewlis and
Richard E. Grant. “Silliness” throughout
disguises a sly but strong seriousness.
This is how myths are born from day to
day and year to year: sideways, a little
skewily; especially those individual
myths, the me-myths, that each of us
aspires to create, if only for ourselves, in
our lifetime.
Creepy is as creepy does, and the FBI
was very creepy under Richard M Nixon.
It was creepy with what makes you
creepiest of all: mission creep. As the
enthralling documentary 1971 shows,
the J. Edgar Hoover goon squad infil-
trated everything from feminist
groups to charity fundraisers. It sent bul-
lying unsigned letters, including one to
Martin Luther King encouraging him to
killhimself.
We might not know this even now. It
was “outed” by outlaw sleuths, not least
the protest burglars who in March 1971
invaded FBI offices in Media, Pennsylva-
nia, and stole a tonne of papers. These
revealed across-the-board lawbreaking
activity by the lawmen. Undercover
Feds were dispatched immediately. Dis-
guised as “hippies” — two-day beards,
G-mancrewcutsgonewildathalfaninch
— they made idiots of themselves while
failingtofindtheperps.Theperps,never
found,cameforthtospeakforthisfilm.
The burglary itself is recreated
as a thrillerish tour de force. The locked-
for-the-night office was invaded
during a televised big fight evening
(Ali versus Frazier), when the janitor
would be distracted. Even then
things went palm-perspiringly
wrong: a changed lock, a door
blocked by a filing cabinet. Finally
the dossier’d dope was found,
filched and sent to the newspapers.
Only the Washington Post —
which had big balls even before
Watergate — dared to publish.
The rest was history, the first
serious “hiss” to Nixon’s
presidency, potentiating
the later chorus of
There are scenes of ardent sex
between the troubled cop hero and the
main suspect’s girlfriend. There are
invocations of The Third Man (a truck-
load). There are snow, night, gurning
gloom and sudden fireworks. Yet I don’t
want to put you off. It’s oddly mesmeris-
ing, this style cocktail that can’t make up
its mind. You find yourself wanting to
follow it down each dark alley of its mix-
and-shake soul. You want to trace and
identify each ingredient, despite the
copious film noir bitters Diao throws in
whenever he is in doubt about his exact
directionandpurpose.
To be successful at the box office in an
age with the attention span of a mayfly, a
comedy must offer multiple-choice
mirth outlets — all turned on simultane-
ously — from slapstick to spoof to special
effects to famous stars taking their
ownmickey.
Melissa McCarthy, though, deserves
better than Spy. She plays a CIA co-
ordinator in Langley HQ who after a
semi-lifetime of directing overseas spies
through their earpieces goes into action
herself, after losing top agent
Jude Law. Consequence: loads of
nuclear-conspiracy global knockabout
from which the reputations of Rose
Byrne, Jason Statham and Miranda Hart
emerge little less knocked about than
McCarthy’s. Wait for
the DVD;
then wait
some more,
possibly for a
well-fortified
evening with forbearing
friends.

THIS EVENING’S TELEVISION

Pick of the day

Gangsterism at its most
savage; territorial conquest
at its most ruthless: we rush
to anthropomorphise wildlife
when cosier human
attributes are apparently
recognisable, but The Lions
of Sabi Sand: Brothers in
Blood (Discovery 9pm)
draws undeniable parallels
with human activities that
we prefer to leave to the
jungle. As gripping as Game
of Thrones, this
extraordinary dynastic
chronicle took 16 years to
make, following a “coalition”
(the disconcerting title) of
rogue male lions in a self-
contained group. These five
brothers and one half-
brother include individuals
like Mr T and Kinky Tail; but
Disney this is not.
Infamous (BBC2 11.50pm),
featuring Toby Jones’s
portrait of the American
writer Truman Capote, was
unfairly eclipsed by the
glossier Capote. Over-lurid
perhaps, but it also boasts
Daniel Craig. — MARTIN HOYLE

BBC 1 BBC 2 ITV London Channel 4

6.00 BBC News.
6.30 BBC Regional News
Programmes.
7.00 The One Show. A report
on a gala concert in
Glasgow where a range of
artists will perform with the
BBC Scottish Symphony
Orchestra. Hosted by Chris
Evans and Alex Jones.
7.30 A Question of Sport. R
8.00 EastEnders.
8.30 The Vicar of Dibley. R
9.00 Have I Got News for You.
Hosted by Jack Dee.
9.30 Mrs Brown’s Boys. R
10.00 BBC News.
10.25 BBC Regional News and
Weather.
10.35 The Graham Norton Show.
11.25 SunTrap. R
11.55 Truly Madly Wembley.
Documentary capturing
fans as they watched their
teams compete in the 2015
FA Cup final. First shown
on BBC3.
6.00 Eggheads. R
6.30 Beat the Brain.
7.00 Antiques Road Trip.
8.00 Mary Berry’s Absolute
Favourites. The cook visits
Guildford Farmers’ Market.
8.30 Gardeners’ World. Carol
Klein observes one of 400
gardens preparing to open
to the public as part of the
National Gardens Scheme.
9.00 Kate Humble: Living with
Nomads. New series. The
broadcaster spends time
with three nomadic groups,
beginning with Nepal’s
Raute.
10.00 The Clare Balding Show.
10.30 Newsnight.
11.00 Weather.
11.05 Heroes: The Story of the
FIFA Women’s World Cup.
Jacqui Oatley presents a
look at the history of the
tournament.
11.50 FILM Infamous. With Toby
Jones.
6.00 ITV News London.
6.30 ITV News and Weather.
7.00 Emmerdale.
7.30 Coronation Street. Todd
puts the final pieces of his
revenge plot in motion.
8.00 Gino’s Italian Escape. R
8.30 Coronation Street. Adrian
breaks Eileen’s heart by
ending their relationship
after Todd tells him all
about her dream man, Jeff.
9.00 Doc Martin. R
10.00 ITV News at Ten and
Weather.
10.30 ITV News London.
10.40 FILM Music and Lyrics.
A washed-up pop idol
seeks the help of the
woman who looks after his
plants to write a song for a
teenage music star.
Romantic comedy, starring
Hugh Grant and Drew
Barrymore.
Regional variations apply
6.00 The Simpsons. R
6.30 Hollyoaks.
7.00 Channel 4 News.
8.00 Marvel’s Agents of
SHIELD. Part one of two.
As the war blurs the line
between friend and foe,
Coulson and his team are
forced to make shocking
sacrifices that will leave
their relationships changed
for ever.
9.00 8 Out of 10 Cats Does
Countdown.
10.00 Alan Carr: Chatty Man.
The host is joined by
comedy actor Peter Kay,
American actress Ellie
Kemper and singer Adam
Lambert. Plus, James Bay
performs his single “Hold
Back the River”.
11.05 Man Down. R
11.40 Virtually Famous. Seann
Walsh and Chris Stark are
joined by Jake Wood, Sam
Faiers, Joe Lycett and Nish
Kumar.

BBC3
7.00 Live Formula 1: Canadian
Grand Prix Practice Two. 8.35
Great Movie Mistakes. 9.00
Live at the Apollo. 9.30, 9.55
Family Guy. 10.20 EastEnders.
10.50, 11.10 Family Guy. 11.35
American Dad! 11.55 Family Guy.
BBC4
7.00 World News Today.
7.35 Sounds of the Eighties.
8.00 Gershwin’s Summertime:
The Song That Conquered
the World. 9.00 The Old
Grey Whistle Test: 70s Gold.
10.30 I’m a Popstar. 11.30 Top
of the Pops: 1980 — Big
Hits.
Other channels
Channel 5
6.00 Home and Away. 6.30
5 News Tonight. 7.00 Ultimate
Police Interceptors. 8.00 Holy
Grail Conspiracy: Secrets of the
Knights Templar. 9.00 Big Brother
— Live Eviction. 10.30 Big
Brother’s Bit on the Side. 11.30 Big
Brother — Live from the House.
More4
6.50 Selling Houses with Amanda
Lamb. 7.55 Grand Designs. 9.00
ANZAC Girls. 10.20 24 Hours in
A&E. 11.25 Sex on Wheels.
Film4
6.40 Mission: Impossible. 8.50
Spy Interview Special. 9.00
American Reunion. 11.10 Adrift.
Sky Atlantic
6.00 House. 7.00 Without a
Trace. 8.00 Blue Bloods. 9.00
Penny Dreadful. 10.05 Silicon
Valley. 10.40 Flight of the
Conchords. 11.15 Banshee.
Sky Sports 1
6.00 Cycling: Riding the Dales —
Yorkshire Tour Challenge. 7.00
Viral Videos of May. 7.15
Champions League: Greatest
Goals. 7.30 Live First Utility Super
League. 10.15 Viral Videos of May.
10.30 Cycling: Riding the Dales —
Yorkshire Tour Challenge. 11.30
Bradley Wiggins: A Year in Yellow.
Sky 1
6.00 Last Man Standing. 6.30,
7.00, 7.30, 8.00, 8.30 The
Simpsons. 9.00 A League of Their
Own. 10.00 An Idiot Abroad 2.
11.00 Hawaii Five-0.
Sky Arts 1
6.00 Levitated Mass. 7.00 Rock
’n’ Roll Exposed. 7.30 Dolly
Parton: Song by Song. 8.00
Inside the Actors Studio: James
Franco. 9.00, 10.15 The Legacy.
11.30 Bryan Ferry Live in Lyon
2011.
Sky Arts 2
6.45 South Bank Masterclasses:
Nick Hytner. 7.00 My
Shakespeare. 8.00 Othello.
11.10 Leonard Bernstein’s New
York.
14 ★ FINANCIAL TIMES Friday 5 June 2015

While the sun shines ... Generous subsidies have led to a boom in share issuance by
renewable energy groups – and eye-catching returns for investors

Selected large UK and US solar assets Amounts raised globally by

Terraform Power renewable ‘yieldcos’ *
Twitter: @FTLex Email: lex@ft.com Listed and unlisted $3.5bn
Solar capacity (MW) 2015 Dividend yield

together. Citigroup values it at $35bn,

1,203 Listing NYSE 3.5%
Dish/T-Mobile: or three-quarters of Dish’s enterprise Abengoa Yield $2.6bn German property:
in a simpler world value. But spectrum value is slippery braking, not skidding
and volatile, and depends on the
Here is how the negotiations between
Dish Networks and T-Mobile US should
buyer’s plans. There is no way to keep
this simple. Viel Glück, gentlemen.
1,015 Listing NYSE 4.3% $1.9bn Hit the brakes. From this week, a new
law limits the level of rent rises in areas
go, but won’t: of Germany where the property
Bluefield Solar
“Might just as well keep this simple,” market is deemed (by regional
(That is Charlie Ergen, founder and Yahoo: governments) to be overheating. But
chairman of satellite TV company
Dish, talking.) “The market — and I do
hate betting against the market —
taking a punt 203 Listing LSE 6.4% Deutsche Annington, the country’s
biggest residential real estate company,
still has its foot on the gas — its shares
reckons our businesses are worth about How desperate is the National Football Foresight Solar $0.3bn rose almost 7 per cent the day the
the same. Market capitalisations of League to get people to watch this Mietpreisbremse or “rental brake” came
about $32bn or $33bn, and we both autumn’s game between the into force.
carry $13bn or so of net debt. We have
complementary products in mobile
Jacksonville Jaguars and the Buffalo
Bills? First, it sent the match to
231 Listing LSE 5.8% Prior to
2013
2013 2014 2015
year-to-date
That is partly because the same day
Annington said it was doing better than
Sources: Bloomberg New Energy Finance; companies. * Includes all renewable energy sources
and video. I have spectrum; you need London. Then it selected it as its first expected from last year’s acquisition of
it. I generate cash; you burn it.” free, live streamed football game. Gagfah, a rival. Savings from the deal
(Here T-Mobile CEO John Legere, in Apple and Google reportedly both bid Yesterday brought the first hint of NextEnergy’s new fund is promising an without exception, these companies are now put at €130m rather than the
fuchsia T-shirt and black blazer, adopts to show it, but neither was willing to summer after a chilly British spring. 8 euro cent dividend in 2016. would struggle. The UK and German €84m estimated at the time, while the
an incredulous expression and begins match Yahoo’s price. The company is It also brought news of another solar North American companies such as governments have already tinkered cost of delivering them will be less. The
to object; he is silenced by an almost paying an eight-figure sum to stream, energy share issue, with the Terraform Power and Abengoa Yield with the subsidy regime for new combined company — to be renamed
imperceptible gesture from the dark- exclusively, one of the least interesting awkwardly named NextEnergy are larger but also emphasise their projects. Italy and Spain have Vonovia — has a loan-to-value ratio of
suited arm of Timotheus Höttges, games of the season. European Solar Utility planning to dividends. All tend to buy existing previously made material and 56 per cent, which is lower than
Deutsche Telekom’s chief, who sits The deal highlights one of the more sell shares in London at €1 each. assets, rather than build new capacity. retrospective changes that have expected. Rental growth will be 2.6 per
directly across from Mr Ergen.) perplexing areas of Yahoo’s business: These companies have a rare Such reliable income — and a lack of reduced investors’ returns. The cent to 2.8 per cent this year and the
“So, what do you say to . . . ” the vast sums it pays to license and appeal. Governments and energy correlation to the wider economic cycle falling cost of installations has only vacancy rate is low at about 3 per cent.
(Mr Ergen scribbles a calculation on a produce content across its sites. Once consumers (via a premium on their — has proved a hit with investors. partly offset such changes. Background conditions are
napkin) “ . . . 0.57 shares of Dish for Yahoo spins off its stake in Alibaba this bills) are spending a fortune There has been huge new issuance and There are other risks. Some favourable; while Germany’s
every share of T-Mo? That splits the year, this activity will be an important subsidising investment — often in the UK premiums to net asset value companies have a “sponsor” selling population may be shrinking, the
new company neatly in half between part of what remains. Yahoo has been through guaranteed power prices — are common. assets to them, whose priorities may number of single-person households is
my shareholders and yours. We all producing more digital content, from in renewable energy. That includes Financial support also allows solar be different. And portfolio managers rising and wage growth is solid. Both
share the upside from cost savings and comedy shows to exclusive Taylor Swift wind, biomass and tidal power as well power operators to borrow cheaply and might be incentivised to gather assets factors support higher rents, despite an
lower customer turnover from a dual- appearances, to interviews by TV as solar. That subsidy can be used to so boost returns on any additional rather than maximise returns. unusually high level of state regulation.
play offering. Going all-stock means we presenter Katie Couric. The company underpin generous and rising assets they acquire. For now, though, solar energy The latest law does not affect new build
can invest more in the business, and does not disclose how much it spends dividends; UK funds such as Bluefield But what would happen if financial companies are free money from or refurbished property, it cannot
goodness knows we’ll have to, on this; content costs are hidden in the and Foresight Solar have floated support was reduced or even ended? governments. It would be churlish reduce existing rents and individual
competing with Verizon, AT&T and “other” line, which came to $1bn last pledging yields of 6 per cent or more, The short answer is that almost not to accept it. states have much leeway as to its
Sprint, not to mention the cable guys. year. That is about a quarter of implementation.
We need a real broadband offering, for revenues. And the law is unlikely to damp
starters. The price gives you some The idea is that better, more appetite for liquid residential property
premium — given how T-Mobile stock exclusive content will attract more these support its core business of its revenue mix, Johnson Matthey is its process technologies division, which investments. Thanks to consolidation
has already run up on deal chatter.” eyeballs and sell more advertising. But selling ads. Otherwise it risks losing heavily skewed towards its automotive supplies catalysts to petrochemicals and a spate of new issues, Germany has
Mr Höttges fixes Mr Ergen with his the sums spent on content are not sight of the end zone. catalytic converter business. Emission producers as revenue from technology a selection of large quoted landlords.
steeliest stare. Seconds tick by. Finally: always justified by additional revenue. control technologies produced 57 per licensing fell. Nor was oil the catalyst it Others include Deutsche Wohnen, TAG
“In Ordnung. Where do we sign?” Take Ms Couric as an example: she cent of sales last year. That makes the might have been as capital investment Immobilien and regional specialist LEG
Alas, it cannot be so easy. It is not reportedly earns $6m a year, and her Johnson Matthey: group a bet on car and truck demand in in new plants was delayed. Cyclical Immobilien.
just the usual issue of desire to control videos have been viewed 120m times Europe and the US, and growth of new pain there, then. And revenue and Their shares are attracting interest.
rather than share. Nor is it the fact that since last June. Peter J Solomon catalysts needed drivers in China. Growth in car sales operating profit in its precious metals Premiums to net asset value are
Deutsche Telekom, two-thirds owner estimates online video ads sell for $25 this year has accelerated from nought unit fell because, after the expiry of a increasingly common — Annington
of T-Mobile US, plainly wants out of the per thousand views; by this metric The more things change, the more they to 7 per cent in Europe, Morgan Stanley high-margin contract with South shares are already above the company’s
US with a cash offer. Ms Couric’s videos could have pulled in stay the same. Johnson Matthey’s share notes, but slowed to 7 per cent from 10 African platinum miner Amplats at the €29 per share end of year NAV
The really hard issue is whether Dish $3m. What was worth the extra $3m — price fell more than 5 per cent per cent in China. Global sales look set end of 2013, the year just ended was estimate — whereas a few years ago,
is worth what the market says. The her personal brand? yesterday despite its better than to decelerate from here. They slowed in Johnson Matthey’s first without wide discounts were the norm.
satellite business, which generated Even more problematic is that expected profit for its year to March. Europe in May. But while vehicle sales Amplats commissions for marketing Germany’s landlords are prospering
about $1bn in free cash flow last year, is Yahoo’s content spending does not That took the chemicals company’s are cyclical, ever tighter emission- and research or its discounts on metal. and popular. It will take more than
losing subscribers steadily. Shrinking seem to be boosting traffic. The shares back to where they were at the control legislation gives Johnson Johnson Matthey says this year’s gentle braking to slow them down.
businesses are hard to value because number of unique visitors to Yahoo start of the year. The pain was partly Matthey exposure to more structural performance will be “slightly ahead” of
their rates of decline tend to change sites fell 5 per cent over the past year, self-inflicted, as it deflated consensus growth. And it will be protected against last year’s. Tame, but yours for 18 times
quickly. Worse still, most of the value according to ComScore. If Yahoo is to expectations for the year ahead. The technology shifts by supplying forecast earnings — merely in line with Lex on the web
For notes on today’s breaking
in Dish comes from the big wireless keep spending on flashy content slowdown in China does not help. chemicals for car-battery technology. its peers. The thing is, if car sales flag, it stories go to www.ft.com/lex
spectrum portfolio Mr Ergen has put agreements, it needs to explain how Try as it might to sell assets and rejig China’s slowdown has, however, hit has few other near-term catalysts.

Forecasts by
LOW
13 1010 19
15 18
1000 17 18
16
4 LOW 35 Luxembourg Sun 32 90
Lyon Sun 34 93
14 19 16 HIGH Madrid Sun 33 91
22 23
20 30 28 Manchester Shower 20 68
26 LOW 23 Miami Shower 30 86
15
13 32 31 Milan Thunder 33 91
20 HIGH
20 Montreal Rain 22 72
32 28
16 30 HI H Moscow Sun 18 64
26 1020 27
21 Mumbai Fair 33 91
14 33 30 Munich Sun 28 82
17 18
26 New York Cloudy 19 66
30
LOW 30 Nice Sun 27 81
15 28 33 9 30
30 Paris Fair 32 90
29 LOW
13 1020
28 Prague Sun 27 81
Reykjavik Shower 11 52
30 29 25 27
Rio Sun 27 81
LOW HIGH Rome Sun 30 86
Wind speed in MPH at 12 BST 30
Temperatures max for day˚C Wind speeds in KPH 28 San Francisco Fair 22 72
Stockholm Fair 19 66
Today’s temperatures Strasbourg Sun 32 90
Abu Dhabi Sun 45 113 Belgrade Sun 28 82 Copenhagen Sun 18 64 Hamburg Sun 28 82 Sydney Cloudy 14 57
Amsterdam Thunder 30 86 Berlin Sun 28 82 Delhi Sun 40 104 Helsinki Sun 19 66 Tokyo Rain 25 77
Athens Fair 29 84 Brussels Thunder 32 90 Dubai Sun 40 104 Hong Kong Fair 32 90 Toronto Shower 24 75
B’ham Shower 21 70 Budapest Sun 28 82 Dublin Shower 16 61 Istanbul Shower 24 75 Vancouver Fair 22 72
Bangkok Fair 36 97 Buenos Aires Rain 24 75 Edinburgh Shower 16 61 Jersey Rain 16 61 Vienna Sun 26 79
Barcelona Sun 27 81 Cardiff Fair 17 63 Frankfurt Sun 33 91 Lisbon Sun 28 82 Warsaw Sun 22 72
Beijing Sun 31 88 Chicago Cloudy 17 63 Geneva Fair 31 88 London Thunder 26 79 Washington Cloudy 24 75
Belfast Shower 16 61 Cologne Sun 32 90 Glasgow Rain 14 57 Los Angeles Fair 22 72 Zurich Sun 30 86

ACROSS 3 Solvent, one acquiring unfurnished

CROSSWORD 1 Vacillation from one side to the residence? (6)
No. 14,949 Set by IO other after a port (9)
6 Are you interested in purchasing
4 English musician feeding local girl
something soft and French (7)
        much talked about Gulf port? (5) 5 Tragic figure grips the ball (7)
9, 16 A fat revolutionary harnessing 6 Funny old ode written on recipe
hydrogen power (3,3) drawer absentmindedly (7)
10 Cross Mr Pitt’s wealth reduced 7 Brother’s about to blossom (5)
  after Hollywood scene (11) 8 I Claudius might have passed this
11 Folding cheque returned by one of 9 14 (4)
European ally (7) 13 US Major General is going to hug
  12 All things considered, getting away boy excitedly (10)
with 8 (5) 16 See 9
 14 Classic overall theme (4) 18 Component papers arranged by
15 Smear Britpop band not all the way school subject (5,4)
     through description of work (4) 20 Painter, the same tragic figure,
17 Potato dish – it’s fried or it’s turning up outside a pub (7)
stewed (5) 21 Extensible table useful in writing a
     19 An ancestor’s not one of 9 14 (5) telegram (7)
21 Disabled sport (4) 22 Amplifier will quickly put his name
 23 One seen heading off by air, often across (7)
by water, finds alternative ..... (4) 24 Villain tobogganed carelessly onto
 
25 ..... and another sanctimonious leaves (3,3)

hellhole (5) 25 A bit reminiscent of a Quaker? (5)
26 Castle brew put before university 27 A state of equality divided by one
  brew (7) or two (4)
28 Staff entitlement, an avenue of a
Solution 14,948
sort that everyone may open (6,5)
29 Not one of 9 14 when heading for ) $ & ( 7 , 2 8 6 * / 2 6 6
  ( + 8 9 7 2 0 7
home (3) 7 5 $ 0 3



 
CROSSWORD
No. 14,845 Set by NEO








   ACROSS
1 Important Viking one among best
friends (5,4)
6 Socialite with appeal makes left-
side entry (5)
9 Brazilian city as far as we’re
concerned ungovernable (7)
10 Obscure English knight against
DOWN
1 Hard maths topic written up to find
circumference (5)
2 Love comes in no time, wildly, for
passion (7)
3 Disagreed also with a thousand
children (4,5)
4 Bond gets to a casino and is

30 Midas perhaps put gold back (5)
European rebuffed (7)
11 Poor nation’s little island in hot
   current (5)
12 Caught flamboyant cardinal in
Seventh Heaven? (5,4)
  
14 Notice flock encircles houses (3)
15 Alarmist financier reversed into
second vehicle bearing right (11)
17 German poet’s the writer
   
embracing pub vocalist (11)
19 Moggy fur with hole concealed? (3)
20 Earl, King and Queen on
   Hampshire river’s banks (9)
22 Ambassador in temple finds grain
(5)
 
24 Ardent Green must change leader
(7)
26 As one’s despicably mean, small
tips for servants materialise (2,5)
JOTTER PAD 27 Sauce unfortunately knocked over
contains sulphur (5)
28 Related martial artist stops at
Bedouin residence (9)
Solution to Saturday’s prize puzzle on Saturday February 14
Solution to yesterday’s prize puzzle on Monday February 16
Winners’ names will be printed in Weekend FT
( / $ % 2 5 $ 7 (
beaten (11)
5 Beast summarising Tokyo-London-
Tokyo trip? (3)
6 Painter died hungry (5)
7 Discount supermarket name in
GB’s upturn with loss on top (7)
8 As 007 mission to Spectre might
be? (3-6)
13 Dope sheathes weapon in open
coat (11)
14 Soul an unknown factor in some
men? Fearless pilots? (9)
16 Girl having paddle round saw
manor demolished (9)
18 Mistress Gwynne about to be
announced in sport (7)
19 Side issue for Clintons (7)
21 Having ducks in horses area
causes commotion (3-2)
23 Crime article Financial Times
provides (5)
25 Sick at first, old man here for
healthy holiday (3)

& / 3 5 8 ) 1 $
31 Lord presses badly hit government + ( / / ( 6 3 2 1 7 ) , 5 0
JOTTER PAD to act with restraint (2,7) ( 5
* $ 1 * : $
$
<
& 7
+ $ 5 % 2
,
8 5
8 * $ $ / 2
DOWN 7 + ( 2 5 ( 0 5 8 ) ) , $ 1
1 Doctor rents a room he looks up % ( $ ( ) 9
8 5 * ( % 5 $ 6 6 , 1 ( 6 6
professionally (10) & 2 , 4 3 & ' 3
2 Road blocks given screening free . $ 5 / 6 5 8 + ( - 8 5 2 5
of contamination (9) ( * 3 ( & $ $ (
7 ( ( 1 < ( 6 7 , 0 $ % / (
Friday 5 June 2015 ★★★ 15

Areva Royal Mail HSBC US 10-year A$/US$ Gold Brent oil Shanghai
Punk bank Virgin Money vows Treasury Composite
to disrupt establishment 2.2% 4.9% 1% 6bp 1.3% $8 2.8% 0.8%
CITY INSIDER, PAGE 20
€8.94 500p 618.8p 2.31% US$0.7681 $1,176 $62.03 4,947.10

HSBC’s $43m Blue Bottle Fidelity joins celebrity buzz around

unplugged coffee chain in $70m funding round
Short
View
payout draws Ben
McLannahan
line under Football can be a brutal business. Top assets are prone to
lose form, get hurt or break contracts. A club can miss out

Swiss probe
on huge prizes by the thickness of a goalpost, or a bungled
clearance from defence.
And yet lenders seem very keen to back the beautiful
game. Last week Manchester United told holders of its sen-
ior secured bonds — paying interest of 8.375 per cent a year
— that it wanted to buy them all back by the end of this
month, two years ahead of schedule. To raise the cash to
3 Deal ends money-laundering case redeem the $269m outstanding, it will issue $425m in
12-year notes paying just 3.79 per cent.
3 US tax evasion inquiry continues At the same time, the club said it would replace a two-
year-old bank loan with one about a quarter smaller
($225m), while cutting the interest-rate range and extend-
CAROLINE BINHAM, LAURA NOONAN “We think we got a good deal,” Mr Jor- ing the term, by six years to 2025. In exchange, the bank
AND MARTIN ARNOLD — LONDON
not said in Geneva of the fine, which is receives another covenant — a vow that earnings before
HSBC has paid SFr40m ($43m) in com- less than 0.03 per cent of HSBC’s market interest, tax, depreciation and amortisation will not drop
pensation to the Geneva prosecutor to value. “It’s up to the bank whether it below £65m a year. The closest United came to that
resolve a money-laundering investiga- thinks it got one too.” Shares in the bank recently was £91m in 2012, so this is hardly an imposition.
tion into its Swiss arm, clearing up one were down 1 per cent. The refinancing tells you a lot about the state of the
of numerous misconduct issues hanging Mr Jornot said his investigation was credit markets today. Analysts say that big companies with
over Europe’s biggest bank. “deep and detailed”. He decried the good credit histories are doing almost exactly as they
The move comes as HSBC prepares to weakness of Swiss laws, which require please — locking in low rates over long terms, dropping
update investors on its strategy next prosecutors to prove money-laundering covenants, awarding themselves the option to redeem if it
Tuesday. This is expected to include was intentional and that the bank knew suits them. This year, investment-grade issuance is run-
thousands of job cuts, a multibillion dol- funds flowing through its accounts were ning about one-third ahead of the record pace of 2014,
lar reduction of assets and the $5bn sale the proceeds of a crime. according to Dealogic.
of Brazilian and Turkish units. Suspicion that a client might be a “sale The United deal is also a symptom of the reduced
The update is seen by HSBC insiders type” — or unreliable — was not enough, secondary-market liquidity that people keep warning
as an opportunity for Stuart Gulliver, Mr Jornot said, adding that HSBC’s argu- about, apparently caused by curbs on investment-bank
chief executive, to retake the initiative ments that organisational failures were intermediaries and uncertainty over regulatory treatment
after the bank faced criticism by politi- historical and had been cleaned up of credit derivatives. Deals are selling so well in the pri-
cians over the investigation at its Swiss “would work only once”. mary market because investors fear they will be unable to
arm and pressure from investors over The bank said in a statement that its trade or hedge positions without incurring big costs, say
its flagging financial performance. Swiss unit had “undergone a radical strategists. If funds are going to be holding bonds until they
The bank, the largest European-based transformation”. mature, they may as well go in and grab as much as they
bank by assets, believes the conclusion “The Geneva prosecutor acknowl- can at the outset.
of the Swiss investigation without crimi- edges the progress the bank has made in Whether that represents a risk to the system is a tricky
nal charges vindicates its argument that recent years, including the improve- question for regulators. But not for Manchester United,
much of the wrongdoing took place ments in its compliance function, inter- which has just shaved enough off its annual interest bill to
almost a decade ago and it has long since nal processes and technology,” it added. pay for another five months of Wayne Rooney.
tightened up controls. HSBC is still being investigated over
However, Geneva’s chief prosecutor tax evasion allegations in other coun- US dollar fixed-rate
blamed weaknesses in Swiss law for his tries, including the US, France, Belgium corporate bond issuance
failure to pursue HSBC’s Swiss private and Argentina. $bn
bank, after his high-profile probe ended Other areas where the bank could still 600
with only a compensation payment for find itself in legal hot water include Drumming up business: beans are roasted in a Tokyo branch of Blue Bottle Coffee — Shuji Kajiyama/AP
“organisational deficiencies”. investigations into rigging foreign High-grade
Olivier Jornot’s officials launched a exchange markets, manipulation of 400
raid on HSBC’s Geneva offices in Febru- Libor interest rates, mis-selling of US Blue Bottle Coffee, the celeb- among those joining previous began life as a farmers’ market
ary after press reports detailed how the mortgage securities, involvement in the rity-backed Californian café backers who include skate- store in 2002 and is now popu- 200
bank had colluded in tax-dodging by cli- Bernard Madoff Ponzi scheme and fix- chain aiming to become an board legend Tony Hawk, U2 lar with the city’s tech elite, High-yield Investment-grade
ents of its Swiss operation. The Swiss ing of precious metal prices. antidote to Starbucks, has singer Bono and the founders of despite its lack of WiFi or plugs. 0 issuance this year
federal prosecutor and Finma, the Separately, HSBC is one of several closed a $70m funding round Twitter and Instagram. The funding will help it 200809 10 11 12 13 14 15 is running about a
financial regulator, have previously said banks assessing their exposure to the that added more names to its Blue Bottle, which started up expand in New York, Los Ange- Sources: Creditsights; Dealogic third ahead of the
they would not investigate. Tax evasion corruption scandal engulfing Fifa. roster of funders. in San Francisco, wants to turn les and Tokyo, with other loca- All figures are year-to-date rate it was in 2014
is not a crime in Swiss law. HSBC has not Analysis page 19 its small artisanal coffee shops tions in Asia also in view.
admitted any wrongdoing. Lombard page 20 Fidelity, the fund manager, is into an international brand. It Report page 18 ben.mclannahan@ft.com

Worldpay seeks to tap demand for

online payments with £6bn listing
HARRIET AGNEW — LONDON people familiar with the situation. from non-banks. The flotation plans
Lazard is advising on the flotation. were first reported by Sky News.
The owners of Worldpay have hired a
Worldpay declined to comment. Banks have been the traditional pro-
roster of banks to float the payment
The owners are seeking to raise viders of payment processing, a back-
processing company in London, seek-
£1bn-£1.5bn, selling equity at a price bone of financial services. But many of
ing a roughly £6bn valuation that
that would value the business at about them, particularly in Europe, have
would make it one of the biggest UK ini-
£6bn, a person familiar with the situa- started selling them off to free up capital
tial public offerings this year.
Pampered mutts boost tion said. They are likely to market the and improve their return on equity, as
profits for Pets at Home Worldpay provides secure payment company as a financial technology or they focus on their core businesses and
services for businesses, including “fintech” provider to take advantage of adapt to new regulations.
The popularity of services such as online, by phone or via a card machine. investor demand for the sector. Worldpay’s IPO is likely to herald a
grooming, nutritional advice and It was carved out of Royal Bank of Scot- Payment processors hope to take series of flotations of payments process-
veterinary treatment for household land in 2010 and sold to US private advantage of the consumer shift to ing companies, as private equity firms
animals pushed up profits in the year equity firms Advent International and online payments that has accompanied and other owners seek to profit from
to March by two-thirds at Pets at Bain Capital. the advent of widespread broadband their investments. Last year, French
Home, which floated last year. Advent and Bain have appointed and smartphone use. European regula- computer-services provider Atos spun
Like-for-like sales grew 4.2 per cent. Bank of America Merrill Lynch, Gold- tors have been trying to increase compe- off its Worldline online payments com-
Maiden results ipage 21 man Sachs and Morgan Stanley as global tition in the sector and encourage par- pany in a float.
co-ordinators for the IPO, according to ticipation in the payments industry Lombard page 20

Companies / Sectors / People

Companies
AT&T...............................................................14
Access Industries.....................................21
Advent..........................................................20
Advent International.............................15
Alibaba...........................................................14
Amplats.........................................................14
Asian Infrastructure Invest. Bank.28
Atos..................................................................15
Avon................................................................19
BBC Trust....................................................20
BBVA...............................................................19
BP.....................................................................18
BYD.................................................................30
Bain Capital..........................................15,20
Bank of America Merrill Lynch.......15
Barclays...........................................................3
Blue Bottle Coffee..................................18
Bluefield........................................................14
Bradesco.......................................................19
CME.................................................................28
Cheil Industries.........................................17
China General Nuclear.........................16
Chipotle.........................................................18
Cisco Systems...........................................16
Citigroup.........................................................6
ConocoPhillips...........................................16
Crowdsurge.................................................21
Deezer............................................................21
Deutsche Annington.............................14
Deutsche Telekom..................................14
Deutsche Wohnen..................................14
Dish..................................................................14
Dish Networks..........................................29
Dunnhumby...............................................20
EDF............................................................16,30
EEX..................................................................28
Elliott Associates.....................................17
Eurex..............................................................28
Euronext.......................................................28
Evraz...............................................................29
ExxonMobil.................................................18
Fonterra........................................................28
Foresight Solar.........................................14
Futaba Industrial.......................................9
General Motors...........................................9
Glencore........................................................18
Goldman Sachs.........................................15
Gome..............................................................30
HSBC.........................................6,15,19,20,28
Index Ventures..........................................21
Inmarsat.......................................................29
Instacart........................................................16
Instagram......................................................15
Investor..........................................................16
Itaú Unibanco............................................19
JM Smucker...............................................29
JPMorgan.......................................................6
Johnson Matthey.......................14,20,29
KVH Industries.........................................29
Kingfisher....................................................29
LEG Immobilien........................................14
Ladbrokes....................................................29
Lazard.........................................................2,15
Live Nation..................................................21
Lloyds Banking Group.....................2,20
Manchester United.................................15
Marks and Spencer...............................20
Mercury........................................................20
Moneysupermarket................................29
Morgan Stanley........................................15
Nissan...............................................................9
Orange.............................................................6
Partner Communications Co..............6
Paulson & Co............................................28
Petrobras.....................................................30
Pets at Home.............................................21
PTG Capital.................................................19
Renault ...........................................................9
Rocket Internet.........................................21
Rocky Mountain Chocolate Factory
19
Rothschilds....................................................2
Royal Bank of Scotland.......2,15,20,29
Royal Dutch Shell....................................18
Royal Mail................................................2,29
SEB...................................................................16
Samsung C&T............................................17
Samsung Electronics.............................17
Samsung Heavy Industries...............17
Samsung Life.............................................17
Samsung SDS............................................17
Santander.....................................................19
Sequoia..........................................................21
Shake Shack...............................................18
Shenhua Energy......................................30
Sightglass Coffee....................................18
Songkick........................................................21
Sony.................................................................19
Spotify............................................................21
Sprint..............................................................14
Square............................................................18
Starbucks......................................................18
State Street Global Advisors...........28
Statoil.............................................................18
T-Mobile US................................................14
Tartine Bakery..........................................18
Tesco..............................................................20
Third Energy..............................................18
Ticketmaster...............................................21
Tokai Rika......................................................9
Total................................................................18
Tower Group International................19
Toyota..............................................................9
Tungsten Corp.........................................20
Twitter......................................................15,18
Universal.......................................................19
Verizon Communications.............14,29
Virgin Money............................................20
Volkswagen...................................................9
Warner Music.............................................21
Winton...........................................................20
Wm Morrison............................................20
Wooga............................................................12
Worldpay................................................15,20
Wynn Resorts............................................29
Yahoo..............................................................14
Yorozu..............................................................9
Zoopla............................................................29
Sectors
Automotive...................................................9
Banks.........................................2,15,19,20,29
Electricity.....................................................16
Food & Drug.............................................20
Food Producers..................................19,28
Gas & Water.................................................6
Gen Financial..................................17,19,28
Gen Industrials....................................16,17
Gen Retailers............................................20
Insurance......................................................19
Media..............................................14,15,18,21
Mining............................................................18
Mobile & Comms.................................6,14
Oil & Gas.......................................6,16,18,30
Personal Goods........................................19
Software........................................................16
Support Services......................................21
Technology HW & Equ........................16
Travel & Leisure................15,18,19,21,29
People
Blavatnik, Len............................................21
Bolland, Marc............................................20
Caldas, Charles.........................................19
Chambers, John........................................16
Dorsey, Jack................................................18
Ergen, Charlie............................................14
Fairhead, Rona.........................................20
Flint, Douglas............................................20
Freeman, James.......................................18
Freyberg, Peter.........................................18
Gadhia, Jayne-Anne.............................20
Galley, Carol...............................................20
Gulliver, Stuart.....................................15,19
Hawk, Tony.................................................15
Higginson, Andrew................................20
Hogarth, Ian................................................21
Höttges, Timotheus...............................14
Jacoby, Rebecca.......................................16
Jae-yong, Lee............................................17
Jenkins, Robert........................................20
Jones, Matt..................................................21
Kellett, Ian....................................................21
Ken Morrison, Sir....................................20
Kramer, Kelly..............................................16
Kun-hee, Lee..............................................17
Kwang, Choi................................................17
Lance, Ryan................................................16
Lauvergeon, Anne..................................16
Legere, John........................................14,29
Lévy, Jean-Bernard................................16
Lewis, Dave................................................20
Ljung, Alexander.....................................19
MacLeod, Robert....................................20
Meehan, Bryan..........................................18
Mullen, Jim..................................................29
Nedev, Nedko............................................19
Noffke, Sue.................................................20
Patel, Pankaj...............................................16
Philips, Dalton..........................................20
Potts, David...............................................20
Richards, Anne.........................................20
Robbins, Chuck.........................................16
Spencer, Michael.....................................20
Sætre, Eldar................................................18
Tillerson, Rex.............................................18
Truell, Edi....................................................20
Wallenberg, Marcus................................16
Wallenberg, Jacob...................................16
Warrior, Padmasree................................16
Wood, Nick..................................................21

© The Financial Times Limited 2015 Week 23

16 ★ FINANCIAL TIMES Friday 5 June 2015

COMPANIES
INSIDE BUSINESS
Oil & gas
TECHNOLOGY

‘US shale is here to stay’, warns Conoco Richard

Chief tells Opec that lower
crude prices will not stop
unconventional oil and gas
NEIL HUME AND ANJLI RAVAL — VIENNA
Opec, the oil producers’ cartel, will not
be able to stop the US shale industry in
spite of lower crude prices, the chief
executive of ConocoPhillips told a sum-
mit yesterday.
mark, has fallen more than 40 per cent
since last summer, with sharp declines
following Opec’s decision in November
to maintain rather than cut output.
Saudi Arabia, the leading Opec mem-
ber, last month claimed success with its
strategy of letting prices fall and squeez-
ing high-cost rivals such as US shale pro-
ducers, as the world’s largest crude
exporter seeks to reassert itself as the
dominant force in the global oil market.
Opec, which as a group pumps about
that the industry is going to make.”
Shale has transformed the outlook for
energy security in the US, and reversed
the longstanding decline in the coun-
try’s oil output. ConocoPhillips is active
in the biggest US shale fields including
North Dakota’s Bakken formation, and
the Eagle Ford in Texas. It is also work-
ing in the Niobrara formation, which
stretches through Colorado, Wyoming
and Nebraska, and Barnett in Texas.
“I was here in 2012 to talk about the
Waters
Brent pricing,” he said. Brent hit a six-
year low near $45 a barrel in January
after years of trading above $100. It has
recovered to $63.
Mr Lance predicted oil prices would
Hard act to deliver
slowly improve in the coming months,
after shale producers slashed the
services for the
number of rigs in response to the crash.
“As prices stabilise or start to improve
a little bit you’ll see the rig count start to
on-demand economy
improve and come back as we go in
2016-17 and create more supply into the

Ryan Lance, who has steered
ConocoPhillips to invest more heavily in
US shale than almost any other multina-
tional energy company, said that break-
even costs for this unconventional oil
and gas production were down by
almost one-third since the crude price
crash and would keep falling.
Brent, the international crude bench-
one-third of the world’s oil, is widely renaissance in unconventional produc-
expected at its twice-yearly production tion and what’s been proven over the
meeting in Vienna today to agree to last three years is that [shale oil] is a
keep the taps wide open. remarkable business; the technology
“US shale is here to stay,” Mr Lance improvements we have made, the effi-
told an audience at the Opec Interna- ciency improvements we have made,”
tional Seminar in Vienna, which was Mr Lance told the Opec seminar.
filled with ministers from the cartel. “This business will survive at $100
“We still have a lot of efficiency gains Brent pricing, it will survive at $60
Electricity. Nuclear revamp
S
system,” he said. Mr Lance said there
was a “very real probability” that the de
facto ban on exports of US crude could
be lifted in the next two years.
ConocoPhillips has been a vocal oppo-
nent of the ban and he said: “We believe
Conoco has over the next couple of years it is an
invested heavily important public policy issue that the
in shale US will have to grapple with.”
ilicon Valley is in the firm grip of a “growth over
profits” mania. With investors willing to pay up
for any new internet service that can show rapid
growth, that is entirely understandable. There is
an assumption, in the wake of Facebook’s transi-
tion from profitless network to moneymaking machine,
that once you have attracted a mass base of online users,
there will be no shortage of ways to monetise the attention.
But what happens to services that start out with no gross
margin: the more they sell, the more they lose? Or to those
whose small gross margins can easily be competed away?
In the current boom, instant delivery services look like
the most intriguing case in point. Summoning a delivery at
the tap of an app is the ultimate promise of the smartphone
economy. But dealing with the logistics and economics

Areva loses reactor heart to EDF
plan could turn out to be a poisoned
Plan to hand over core unit chalice for EDF because it is accepting
may become a poisoned chalice huge risks by taking a majority stake in
Areva NP, with Areva continuing to own
for France’s state-run group a small part.
EDF’s shares fell 2.8 per cent to €21.16
yesterday, after the government had
MICHAEL STOTHARD — PARIS
said on Wednesday that the new struc-
For years French state-controlled ture for the once-proud nuclear industry
nuclear group EDF made no secret of would allow for an “ambitious export
wanting to break up Areva, its supplier, policy” and the “future renewal of
to become the undisputed champion of France’s nuclear power plants”.
one of the country’s most important One obvious issue that could damage
strategic industries. the structure is the rivalry between EDF
Late on Wednesday, after a day of and Areva. This peaked when Anne
high-level government meetings, EDF Lauvergeon — dubbed Atomic Anne —
finally got its way. Ministers in effect was Areva’s founding chief executive
decided to hand over Areva’s core reac- between 2001 and 2011.
tor business to EDF. “Fifteen years ago, Areva was a pow-
The plan will see state-controlled erful project, bringing together all
Areva, which in March reported a French activities at the core of the
record €4.8bn net loss for last year, nuclear industry . . . Let’s admit that it
reduced to a nuclear-fuel company that did not work,” Jean-Bernard Lévy, the
mines, enriches and then disposes of chief executive of EDF, told Le Figaro.
uranium. It will get a much-needed cap- The main problems that have laid low
ital injection from the government, Areva are costly mismanagement of key
although the size has yet to be outlined.
The heart of Areva — called Areva NP,
which designs, builds and services
‘Fifteen years ago,
nuclear reactors — is being torn out Areva was a powerful
under the plan. It means EDF will not
only construct and operate nuclear
project . . . Let’s admit
power plants around the world, includ- that it did not work’
ing 58 in France, but would also build
and export new reactors. Critics say the
Jean-Bernard Lévy, EDF chief
projects, plus a lack of export orders as
demand for new reactors slumped
worldwide following the 2011 Fuku-
shima disaster in Japan.
Areva has not sold a new reactor since
2007, with the company also hit by more
competition from rival companies in
Russia, South Korean and the US.
In time, there will be a large domestic
market for EDF to exploit, because over
the next two decades France’s 30-year-
old reactors, which generate 75 per cent
of the country’s electricity, have to be
replaced.
But for the company to maintain the
knowledge and expertise in the mean-
time at Areva NP, EDF must secure
export orders. “The deal [involving EDF
and Areva] . . . does not fundamentally
change the dynamics of the market,”
says one person close to EDF.
EDF’s challenges are compounded by
Areva’s big technology bet, its next-
generation European pressurised reac-
tor, or EPR, which has been plagued by
problems.
Areva’s Olkiluoto 3 EPR reactor in
Finland, which is set to come online in
2018, is nearly 10 years behind sched-
ule. Areva has taken €3.9bn of impair-
ment charges on the project.
In France, the new EPR reactor
designed by Areva and being built
by EDF at Flamanville in France is
five years behind schedule and almost
Areva’s key €6bn over budget. This has left
Olkiluoto 3 EPR people nervous about the EPR
reactor in nuclear power station being built by
Finland is nearly EDF at Hinkley Point in the UK, based
10 years behind on the same Areva design as the
schedule — Heikki Olkiluoto plant.
Saukkomaa/Reuters
The one bright spot for Areva’s EPR
programme has been in Taishan, China.
China General Nuclear is constructing
two EPR reactor plants, which are cur-
rently on time and on budget.
Success in China is crucial because the
country is expected to be one of the big-
gest nuclear markets in the coming
years. “Today you need to have stake in
the Chinese market if you want to be a
player in the nuclear industry,” says
Jean-Marc Ollagnier, chief executive of
Accenture’s resources operating group.
“Fortunately, the French industry has a
good reputation in China.”
China could take a stake in Areva NP,
according to people close to the deal
involving EDF and Areva.
There are some reasons why the Chi-
nese could be interested. Areva NP has a
cash cow; it services about 250 of the
430 nuclear power plants worldwide,
which generated €1.6bn of revenue last
year. But fundamentally, insiders say,
the Areva NP plan is chiefly about rescu-
ing Areva’s finances, adding the chal-
lenge for the French nuclear industry of
cracking the export market for reactors
has yet to resolved.
implied by this — dispatching people to shop for and
deliver myriad items — is a tough proposition when con-
sumers have been taught to expect convenience at little or
no extra cost.
It would be easy to dismiss the delivery services as crea-
tures of a bubble. But getting the formula right would pro-
vide huge value, for both
consumers and merchants.
On the cost side of the
Rival delivery
equation, much has been apps promising
done to improve things since
the days of Webvan, a sym-
better deals
bol of dotcom excess. It took could easily drive
on massive fixed costs,
assembling its warehouses
down margins
and a fleet of trucks, only to
collapse quickly when it could not generate enough orders.
Today, delivery companies such as Instacart and Post-
mates use contractors to shop and deliver. They also count
on their software to optimise the complex logistics of han-
dling many small orders, as they try to lower the high unit
costs of what is essentially a personal service.
Just because an Instacart is not a Webvan, however, does
not guarantee success. There is still the revenue side of the
equation to consider.
Here, the picture is daunting. Making an economic
return from a standalone service is hard when companies
such as Amazon or Google — with a service called Google
Express — offer free or heavily subsidised delivery.
The behaviour of the internet giants has trained con-
sumers into thinking they should not face an extra cost for
delivery or, at most, pay membership fees that are used by
the companies as a way to suck in a large share of their
online spending.
But the use of delivery as a weapon in the battle between
big internet companies provides a clue about where the
money for standalone delivery services might be made:
out of ecommerce margins or the marketing dollars of con-
sumer goods companies.
Companies such as Instacart are tapping into the former
through direct relationships with retailers. To do this they
charge a commission for
delivering higher volumes of
orders to real-world stores.
Investors are
It will be hard to maintain willing to pay for
a competitive advantage:
rival delivery apps promis-
any new internet
ing better deals could easily service showing
drive down margins. Inte-
grating their systems with
rapid growth
retailers to make the supply
chain work more smoothly — as Instacart has done with
Whole Foods Market in the US — is one way to cement a
relationship, though retailers are likely to invest in only a
limited number of such links.
Another opportunity is to develop better understanding
of customers and use it to help merchants generate higher
sales. But becoming effective marketing organisations will
require delivery companies to develop new skills.
They will also need to tread carefully. Retailers are
already nervous about losing customers from their real-
world stores. To prove their value, delivery networks need
to show they can use their online reach to more than make
up for this — though that could become a zero-sum game if
the services become widely used and no single store can
hope to lift its own share of the pie at the expense of others.
Another potential concern for retailers is that they could
be turned into little more than warehouses in a new on-
demand supply chain — hardly the sort of thing that will
make them willing allies.
The long shadow that Amazon and Google cast across
the retail landscape means that there will plenty of bricks-
and-mortar companies willing to experiment, as well as
delivery services trying to turn themselves into the miss-
ing link in the on-demand economy. But it will be a hard
act to pull off.
richard.waters@ft.com

General industrials Technology hardware

Sweden’s Wallenberg family warns over ‘Brexit’
RICHARD MILNE — STOCKHOLM
One of Europe’s leading business fami-
lies has warned that the UK leaving the
EU would rob Europe of its leading
advocate of open trade.
Sweden’s Wallenberg family, which con-
trols a business empire with a market
capitalisation of €250bn and revenues
of SKr1.3tn ($156bn) via groups from
Ericsson to Nasdaq, told the Financial
Times that a British exit (a “Brexit”)
would be “very negative for Europe”.
“The axis of London-Paris-Berlin
changing to Paris-Berlin would be a sig-
nificant change to the core of Europe.
Britain stands for a liberal economic
stance which I find very important,
speaking as businesspeople and free-
trade advocates,” said Jacob Wallenberg,
chairman of Investor, the main family
investment vehicle.
Cousin Marcus Wallenberg, chairman
of bank SEB, added: “Speaking of Grexit
[a Greece exit], do I think we should be
more worried about Brexit? Yes.”
The views of the Wallenbergs carry
great weight. Their 159-year-old empire
spans a range of industries from phar-
maceuticals to finance. Their concern is
shared by much of the European busi-
ness community as well as Nordic gov-
ernments, which back the UK on liberal
economic and trade issues.
The victory of the Conservative party
in the UK general election means a ref-
erendum on whether Britain should
stay in the EU will be held by 2017.
Marcus Wallenberg also said he was
concerned about the effect of a Brexit on
the City of London.
“It has given Europe a place in the
financial world that has been far greater
than the weight of its other activities. To
jeopardise that position would be nega-
tive for both European and British
finance, and probably not a very good
thing for the UK generally.”
Read the full interview with the
Wallenbergs tomorrow on FT.com and in
Saturday’s FT Magazine
Cisco’s top woman engineer to leave in shake-up
RICHARD WATERS — SAN FRANCISCO
Padmasree Warrior, one of Silicon
Valley’s most senior female engineers,
is to step down as technology chief of
Cisco Systems in a leadership overhaul
at the US networking equipment
company.
Her departure, set for next month, is
part of a shake-up of management by
Chuck Robbins, who will take over from
John Chambers to become the com-
pany’s first new chief executive in 20
years.
The departure of Ms Warrior, who
had served as technology chief and sen-
ior vice-president of engineering during
her seven years at the company, comes
at a time when tech companies are
under pressure to appoint more women
into senior engineering jobs.
Despite the loss of a prominent female
figure, Mr Robbins’ 10-person manage-
ment team, announced yesterday,
includes five women, high by the stand-
ards of the tech industry. They include
Kelly Kramer, finance chief, and
Rebecca Jacoby, senior vice-president of
operations. None, however, will be in
technical roles.
The shortage of women in senior
technical positions has become an issue
for most of the leading tech companies.
At its annual shareholder meeting
on Wednesday, Google said it had
increased the number of women in its
engineering ranks by only one percent-
age point over the past year, but added
that this still represented important
headway.
Ms Warrior had already stepped back
from direct management of Cisco’s
army of engineers, handing over the
leadership to co-head Pankaj Patel two
years ago. Since then, she has had
responsibility for strategy and corpo-
rate development.
Mr Patel was named executive vice-
president of development and head of
Cisco’s 25,000 development engineers
in the new leadership group.
Friday 5 June 2015
US hedge fund condemns Samsung merger
Elliott Associates says Cheil’s
tie-up with building unit will
benefit only controlling family
SIMON MUNDY — SEOUL
Samsung’s succession process has come
under attack from US hedge fund Elliott
Associates, which is trying to block a
deal involving the group’s construction
business that it claims will benefit only
the controlling Lee family.
Last week, construction business
Samsung C&T said that it had agreed to
merge with Cheil Industries, which
counts as its biggest shareholder Lee
Jae-yong — the son and heir apparent of
Samsung group patriarch Lee Kun-hee.
Yesterday, however, Elliott con-
demned the deal and announced a 7.1
per cent shareholding in Samsung C&T
— up from a level that had been below
the 5 per cent regulatory disclosure
threshold.
“The proposed merger significantly
undervalues Samsung C&T,” it said.
“The terms are neither fair to, nor in the
best interests of, Samsung C&T’s share-
holders.”
And the hedge fund’s complaint goes
to the heart of a problem that has long
weighed on the valuations of South
Korea’s chaebol — or family conglomer-
ate — business groups: the potential for
conflicts of interest between outside
investors and the controlling dynasties.
Lee Jisoo, a lawyer at the Centre for
Good Corporate Governance, says the
proposed Samsung C&T deal highlights
this conflict. “There’s no economic rea-
son why these two companies should
merge, other than the interests of the
controlling shareholder,” he argues.
Samsung Group itself is not a legal
entity, but a network of 74 affiliate com-
panies held together by a complex
cross-shareholding structure, in which
the Lee family maintains strategic
stakes to help it retain control. Among
these affiliates are Samsung Electronics,
the world’s biggest technology company
by sales, Samsung Heavy Industries, the
world’s second-biggest shipbuilder and
Samsung Life, South Korea’s largest life
assurer.
However, with Lee Kun-hee bedrid-
den since a heart attack last May, the
Seoul stock market has been gripped by
speculation over the succession, and,
Cheil Industries’
biggest investor is
Lee Jae-yong, son
and heir apparent
of Samsung head
Lee Kun-hee
specifically, how his son can maintain
the family’s control after an inheritance
tax bill expected to top $5bn.
Yesterday, Samsung C&T said it would
press on with its planned deal with
Cheil. “The merger will ultimately
increase shareholder value”, it claimed.
Cheil said that its construction division,
which mostly serves other Samsung
companies, would enjoy synergies with
Samsung C&T, and the latter’s global
network would help Cheil’s fashion and
food businesses to grow.
The Lee family would have a com-
bined stake of 31 per cent in the merged
company, which would take on Sam-
sung C&T’s 4.1 per cent stake in Sam-
sung Electronics.
Elliott’s opposition is based on a con-
cern that the deal takes advantage of a
disparity between the valuations of the
two companies, resulting in a beneficial
outcome for the Lee family at the
expense of Samsung C&T shareholders.
Since its initial public offering last
December, Cheil has enjoyed a surge in
its share price that put the company on a
valuation of 134 times this year’s fore-
cast net earnings when the merger was
agreed.
Analysts at HSBC say that this strong
valuation reflected the company’s per-
Investor fears
Group seeks to reassure
over talk of second tie-up
While Samsung presses ahead with
one controversial merger, it has tried
to calm investor fears over a second.
Following the announcement of the
Samsung C&T-Cheil Industries deal
late last month, market speculation
has shifted to a possible merger of the
flagship Samsung Electronics business
with Samsung SDS — an IT services
company in which group heir-apparent
Lee Jae-yong and his two sisters have
a 19 per cent stake.
Analysts have suggested a tie-up
would be a tax-efficient way for Mr
Lee to increase his stake in the
electronics business, sparking alarm
from other shareholders in Samsung
Electronics. However, on Wednesday,
that company denied it was planning a
merger — prompting its shares to
surge 5 per cent next day, while shares
in Samsung SDS fell 7 per cent. Like
★ FINANCIAL TIMES 17
COMPANIES
South Korean chaebol. Succession concerns
Samsung C&T and A classic Elliott move
Cheil Industries Activist’s Korean foray
Share prices (rebased)
bears familiar hallmarks
160
Cheil Industries While Elliott is famed for its
140 aggression, an equally important
element of the hedge fund’s
120 success has been a willingness to
fight companies for many years.
100 Its decision to muscle in on
Samsung’s latest restructuring deal
bears many of the hallmarks of a
Samsung C&T 80
classic Elliott trade: wedging itself
Dec 2015 Jun between a highly motivated buyer
2014
Source: Thomson Reuters Datastream
and a coveted asset.
In the case of Samsung, Elliott
has found a situation where it can
make life hard for a group already
occupied with planning for life after
Lee Kun-hee. At best, its move
tempts other investors in Samsung
C&T to join its push for a higher
Samsung’s complex structure of price. At worst, Cheil does not raise
cross-shareholdings keeps the Lee its offer, and Elliott keeps the spread
family in control of the sprawling between what it paid for its stake
South Korean conglomerate — Albert and the bid price. Miles Johnson
Gea/Reuters
ceived role as “a hub connecting the
founding family . . . to all the Samsung
affiliates”. Cheil’s existing assets include
a 19 per cent stake in Samsung Life,
which in turn owns another 7.6 per cent
of Samsung Electronics.
By contrast, Samsung C&T, which is
best known for constructing the Burj
Khalifa in Dubai, the world’s tallest
building, suffered a 29 per cent fall in its
share price in the six months before the
merger announcement.
Its business had struggled in the
period, with first-quarter operating
profit missing analysts’ forecasts by
two-thirds. But investor worries about
the potential loss of value from a merger
with Cheil were a further factor, accord-
ing to Michael Na, an analyst at
Nomura.
In line with South Korean law, the
terms of the merger were determined
by the share prices of the two companies
in the weeks before the deal.
Cheil was therefore deemed to be
worth 2.5 times the value of Samsung
C&T, even though its net assets were less
than half of Samsung C&T’s at the end of
March.
After this was announced, Shaun
Cochran, Korea head at brokers CLSA,
wrote: “This deal essentially amounts to
accepting clearly fundamentally expen-
sive Cheil shares in exchange for clearly
fundamentally cheap Samsung C&T
shares,”
After Elliott’s intervention yesterday,
Samsung C&T shares rose 10 per cent,
suggesting the market expected meas-
ures to boost shareholder value and pla-
cate investors, according to Mr Na.
Ultimately, however, the deal’s fate
may be determined by South Korea’s
National Pension Service, which, with a
10.6 per cent stake in Samsung C&T as at
May 12, is the group’s biggest share-
holder.
Last year, Choi Kwang, the service’s
chairman, told the Financial Times that
he did not think it appropriate to use the
pension fund’s shareholder votes in
response to corporate governance con-
cerns.
But in November, the fund in effect
blocked a merger between Samsung
Heavy Industries and the lossmaking
Samsung Engineering, by taking up its
rights to request a buyback of its stock
in both companies. This made it too
expensive for the groups to complete
the deal.
The fund said that it was still in inter-
nal discussions on whether to back the
Samsung C&T-Cheil merger.
“Everything now depends on what
the NPS decides,” said Mr Lee at the
Centre for Good Corporate Governance.
“But there’s no way of predicting what
they’ll do.”
Cheil Industries, shares in Samsung
SDS have risen strongly since listing
last year, as investors sought to align
themselves with the next generation
of Samsung’s controlling family.
Lee Jae-yong acquired his positions
in the two companies through the
purchase of convertible bonds in the
late 1990s. But court rulings found he
bought the assets at well below fair
value, and his father Lee Kun-hee was
given a suspended prison sentence for
breach of trust.
Macquarie analysts say that Mr Lee
is more likely to sell his stake in
Samsung SDS to meet a multibillion-
dollar tax bill on his father’s death,
though others say a merger with
Samsung Electronics remains possible.
Credit Suisse analysts warn the
“stretched valuation” of Samsung SDS
would make a merger a bad deal for
Samsung Electronics shareholders but
say a split of Samsung Electronics into
operating and holding companies
would improve the asset structure and
shareholder returns. Simon Mundy
18
Oil & gas
Energy groups attack Europe fracking laws
Statoil and ExxonMobil
call for fresh examination
of divisive drilling process
MICHAEL STOTHARD — PARIS
European laws restricting fracking have
come under attack from the chief execu-
tives of two of the world’s largest oil and
gas companies who are calling on policy
makers to re-examine the contentious
drilling process.
Eldar Sætre, chief executive of Nor-
wegian state-controlled energy com-
pany Statoil, told the Financial Times
that fracking was currently a “lost
opportunity” for Europe.
Rex Tillerson, chief of ExxonMobil,
Blue Bottle raises big bucks for small beans
Speed of Fidelity-led $70m
funding raises eyebrows of
San Francisco’s coffee purists
TIM BRADSHAW — SAN FRANCISCO
It may be seen by some as the anti-
Starbucks, but Blue Bottle Coffee is
turning its small-scale, artisanal cafés
into big bucks.
The California-based coffee retailer
and roaster has closed a new $70m
round of funding led by Fidelity. Start-
ups that raise such sums are typically
valued in the high hundreds of millions
of dollars, although the company did
not comment on its valuation.
Blue Bottle is adding Fidelity Manage-
ment and Research, a unit of one of the
largest fund managers in the US, and
‘I think people like Fidelity
see that there’s a
great opportunity’
Bryan Meehan, Blue Bottle
Tetragon Financial Group, a hedge fund,
to its growing list of backers.
Investors already include Morgan
Stanley and tech venture capitalists
Index Ventures and True Ventures, the
founders of Instagram and Twitter and
celebrities such as actor Jared Leto, pro
skateboarder Tony Hawk and U2’s
Bono.
“I think people like Fidelity see that
there’s a great opportunity, in the same
way Chipotle and Shake Shack have
come from nothing, to do something
better with coffee and baked goods,”
said Bryan Meehan, Blue Bottle’s execu-
tive chairman.
The fundraising follows April’s acqui-
sition of San Francisco’s Tartine Bakery
Contracts & Tenders
said Europe could see a natural gas ren-
aissance similar to the US if govern-
ments such as France and Germany
allowed fracking to go ahead.
Mr Sætre said: “I am confident that it
is possible to operate fracking opera-
tions in Europe in a responsible manner
as it is in the US. It is accessible, it is close
to the markets, it can be done, it is not
rocket science.”
Hydraulic fracturing, or fracking,
involves pumping a mixture of water,
sand and chemicals at high pressure
into rocks deep underground to open up
tiny fissures, allowing oil and gas to flow
more freely to the wellhead.
Fracking has caused a boom in US
production of oil and gas, sharply reduc-
ing energy costs in the region. But it is
Travel & leisure. Coffee culture
and will fuel expansion in New York, Los
Angeles and Tokyo, as well as its native
Bay Area. Other locations in Asia, such
as South Korea, Taiwan and Hong Kong,
may follow.
James Freeman, Blue Bottle’s founder
and chief executive, said that unlike
many so-called third wave coffee com-
panies that distribute beans wholesale,
he was focusing on the company’s
stores. “Retail is expensive but retail is
rewarding if you get it right,” he said.
The speed and scale of Blue Bottle’s
fundraising has raised eyebrows among
some of San Francisco’s coffee purists.
Some former Blue Bottle employees
have left to start their own independent
coffee shops, bemoaning the growing
number of MBAs and management con-
sultants now involved in the business.
But as it faces off against local rivals
such as Sightglass Coffee, backed by
Twitter and Square co-founder Jack
Dorsey, Blue Bottle has also highlighted
investors’ appetite for its style of high-
margin, millennial-friendly cafés.
Like many start-ups in neighbouring
Silicon Valley, Blue Bottle is taking
advantage of late-stage investors’
“crossover funds”, which are investing
in private companies rather than wait-
ing for them to go public.
Before its latest $70m injection, Blue
Bottle had raised $46m in two rounds,
the most recent of which came just last
year, led by Morgan Stanley.
While the sums invested may seem
large for a coffee chain with fewer than
20 stores today, Blue Bottle is eager to
maintain the quality and local appeal
that made its name.
Tartine’s co-founder Chad Robertson
said: “The third wave [of coffee] was
about artisanal upstarts roasting their
coffee in different ways and a super-ob-
sessive attention to detail. The fourth
wave is bringing that same thing to a
much wider audience without compro-
mising it.”
★ FINANCIAL TIMES
COMPANIES
less widely used elsewhere in the world
as attempts to “frack” have raised con-
cern over the risk of minor earth trem-
ors that can be triggered by injecting
waste water back underground.
On the sidelines of the World Gas Con-
ference in Paris, Mr Sætre said that gov-
ernments should “consider all the facts”
before deciding on whether to allow
fracking. “The French banned it before
‘It is possible to operate
fracking operations in
Europe in a responsible
manner as it is in the US’
Blue Bottle founder James Freeman, right, has a nose for coffee and for retail opportunities — Brendan McDermid/Reuters
they knew what it was really,” he added.
France, Bulgaria and the Netherlands
have all banned fracking, while protests
in Germany have forced authorities to
impose strict controls. Denmark,
Poland and the UK are some of the few
European countries to allow fracking.
Last month, UK shale explorer Third
Energy applied to frack for gas near the
Yorkshire town of Malton, the second
company to seek permission to drill in
Britain. It has been met with opposition
from environmental groups.
In a speech at the Paris conference,
Mr Tillerson made the case for fracking
in Europe. “By opening up access and by
applying proven technologies, Euro-
pean and global markets would capture
the benefits of increased energy diver-
sity, flexibility and security. Unfortu-
nately, some nations such as Germany
and right here in France have put in
place policies that have effectively
banned hydraulic fracking,” he said.
Mr Tillerson continued that 2m wells
in the US and Canada have been safely
hydraulically fractured in total. “I think
we have enough data.”
The comments come as six of
Europe’s top oil and gas companies this
week said that use of coal in electricity
generation should be shunned in favour
of cleaner burning natural gas, to help
combat global warming. Focusing on gas
would reduce carbon emissions, the
companies argued, ahead of a UN meet-
ing in Paris in December to seal an inter-
national climate agreement.
Legal Notices
Friday 5 June 2015
Mining
Glencore hits
at anti-coal
policies of
global leaders
JAMIE SMYTH — SYDNEY
Glencore has criticised global leaders
for neglecting investment in “clean
coal” technologies and adopting “pop-
ulist policies” that ignore the world’s
reliance on the fuel.
The world’s biggest supplier of seaborne
thermal coal said yesterday that global
carbon dioxide emissions could have
been cut by 2bn tonnes over a decade if
all power stations built between 2000
and 2010 had used the best technology
available.
“As a first step there needs to be an
acknowledgment that coal is not going
to be wished away. In fact, coal use is
going to continue to increase,” said Peter
Freyberg, head of Glencore Coal.
“There has been significant populist
policy over the past decade. This popu-
list policy avoids talking about coal,” he
said.
Mr Freyberg said leaders must adopt
a policy at the Paris climate-change
talks this year that recognises the
world’s global energy needs.
The use of coal has come under attack
from environmental campaigners, who
claim it should be phased out to lessen
climate change. The fuel has been the
target of an aggressive divestment cam-
paign, with Norway’s parliament sched-
uled to vote as early as today to direct its
$900bn sovereign wealth fund to sell a
portion of its coal assets.
Gas producers such as Royal Dutch
Shell, BP and Total have also turned on
coal, arguing that natural gas should
begin to replace use of a commodity
producing twice the CO2 emissions.
Daniel Morgan, UBS commodities
analyst, said: “There are environmental
issues, there is a lot of supply and there
is gas: the extraction costs of gas are
coming down a lot so gas globally is
probably the biggest threat to thermal
coal.”
The intervention by the London-
listed commodity trader and mining
house comes as a growing number of
analysts warn thermal coal is in struc-
tural decline owing to changes in policy
in China, the world’s biggest importer.
China’s coal imports fell 11 per cent in
2014 from the previous year, the first
time imports had declined for more
than a decade. Coal-fuelled power sta-
tions are running at about half capacity,
which has dented demand and pushed
coal prices down 60 per cent since their
peak in 2011.
Mr Freyberg told Melbourne Mining
Club that Glencore was bullish on the
long-term outlook for thermal coal.
“Coal is still the most abundant, most
economic and the most reliable means
of delivering access to energy and sup-
porting a rise in living standards in
many developing economies,” he said.
Mr Freyberg said that coal was
needed to provide cheap energy to lift
people out of poverty.
Friday 5 June 2015
HSBC chief prepares to pitch second shake-up
Gulliver risks disappointing investors if scheme to shrink Europe’s biggest bank is not considered ambitious enough
MARTIN ARNOLD — LONDON
SAMANTHA PEARSON — SAO PAULO
HSBC will next week present investors
with its second attempt in four years to
simplify and shrink Europe’s biggest
bank by assets by reversing the acquisi-
tive growth strategy it pursued over sev-
eral decades.
Stuart Gulliver, chief executive, will
announce plans to cut thousands of jobs,
shed a multibillion-dollar portfolio of
investment banking assets and retreat
from underperforming markets includ-
ing Brazil and Turkey.
It is a further retrenchment in the glo-
bal ambitions of a group that once
branded itself “the world’s local bank”
and still has 266,000 employees in 73
countries and territories.
The bank has already kicked off the
auctions of its Brazilian and Turkish
operations, which it expanded aggres-
sively during the late 1990s. Together
analysts expect the two sales to raise
some $4bn-$5bn.
The Brazilian process has attracted
interest from several lenders in the
region. HSBC is expected to receive
offers from local rivals Bradesco and
Itaú Unibanco as well as Spain’s
Santander and BBVA, which are keen to
examine the chance to expand in the
Brazilian market. All parties declined to
comment.
In a move likely to attract as much
attention, Mr Gulliver will also tell
investors in London on Tuesday morn-
ing what methodology he will use to
decide whether to keep the bank’s head-
quarters in the UK or move to another
region, such as Hong Kong.
Analysts and investors say that expec-
tations are high ahead of the update and
Mr Gulliver risks disappointment if his
plans to turn round the bank’s flagging
performance are not considered ambi-
tious enough.
This scepticism stems from the fact
that he launched a similar drive to cut
costs and simplify the group after taking
over in 2011. But those efforts have
failed to produce the promised results
and Mr Gulliver has in the past year
been forced to retreat from targets on
cost efficiency and return on equity.
The shares have fallen about 5 per
cent during the 56-year-old’s time in
charge, underperforming the MSCI
world banks index by about a fifth.
However, there is still considerable
sympathy for the scale of the challenge
he faces.
“The problem that Gulliver has is like
that of Sisyphus, in that he keeps rolling
the boulder up the hill only for it to roll
back down again,” says Ronit Ghose,
banking analyst at Citigroup. “It is a
thankless task. They cut headcount by
40,000 between 2011 and 2013 and
their returns have still gone down.
Investors want to hear more about how
they are going to meet their target on
returns this time.”
Many of the new job cuts are expected
to fall in HSBC’s retail banking opera-
tions, where it is set to follow rivals such
as JPMorgan and Barclays by reducing
staff numbers in its branches to reflect
the shift of customers to digital services.
But the bank is also taking a knife to
its investment banking operations,
which investors say are dragging down
the performance of the group, particu-
larly if $3bn of extra revenues from
managing its excess deposits are
excluded — as most rivals do. One top 20
investor in HSBC estimated that to hit
Mr Gulliver’s target of keeping annual
operating costs unchanged at about
$41bn between 2014 and 2017, he needs
to strip out some $3bn of gross costs to
offset rising compliance expenditure
and wage inflation in Asia.
James Laing, deputy head of UK and
General financial
PTG Capital sued over fake $8.2bn Avon bid
GINA CHON — WASHINGTON
The US Securities and Exchange Com-
mission has sued PTG Capital, the pos-
sibly fake company that made a bogus
bid for Avon in May, causing an almost
20 per cent surge in the cosmetics com-
pany’s share price.
Bulgarian resident Nedko Nedev and
other entities tied to Bulgaria, are also
accused of making fake bids for insur-
ance company Tower Group Interna-
tional and Rocky Mountain Chocolate
Factory, according to the SEC lawsuit
filed yesterday in a US district court.
Scaling down
Share price
(pence)
Jan 2011
Stuart Gulliver becomes CEO
and opts to stay in London
2011 12
European equities at Aberdeen Asset
Management, a top 10 investor in HSBC,
says: “In HSBC’s defence, most banks
have failed to hit their targets for cost-
cutting and returns. The regulatory
environment makes it challenging for
all banks, however they just have to
keep working hard at it and that is
something I am confident they are
doing.”
Since Mr Gulliver took over, HSBC has
retreated from consumer banking in
more than 20 countries, such as Colom-
bia, South Korea and Russia, leaving it
Chief executive
Stuart Gulliver has
had to retreat from
targets on cost
efficiency and
return on equity
with retail and wealth management
operations in about 40 markets.
But the exits it is preparing from Bra-
zil and Turkey are expected to be more
comprehensive, leaving it with little
more than a representative branch to
carry out trade finance and cash man-
agement services for foreign multina-
tionals.
Mr Ghose at Citi says: “I’d be very sur-
prised if they completely got out of Bra-
zil. They need to have some presence
there to serve big corporates.”
When HSBC entered Brazil in 1997 it
sparked widespread panic among local
operators by buying Banco Bamerindus,
They also allegedly issued fraudulent
press releases, which allowed them to
sell their shares in those companies at
artificially inflated prices, the SEC said.
The lawsuit appears to solve the mys-
tery of what was behind the $8.2bn bid
for Avon. In its SEC filing in May, PTG
Capital claimed to be a private equity
firm based in London and incorporated
in the British Virgin Islands.
“There is no indication that PTG Capi-
tal is a legitimate company organised for
any other reason than the stock manip-
ulation scheme described here, and PTG
Capital (to the extent it actually exists)
is operated from Sofia, Bulgaria,” the
SEC suit said.
The fake bid also exposed potential
flaws in the SEC’s filing system, which
companies can access after applying to
receive certain codes. The SEC said at
the time that under securities laws, the
responsibility for the “truthfulness” of
filings lay with the filers.
In May 2014, Euroins Insurance
Group issued a fraudulent press release
★★★ FINANCIAL TIMES 19
COMPANIES
Regulatory file
Catalogue of legal
Return on equity problems on horizon
%
10.9 If only every misconduct issue
9.5 could be this painless to resolve.
9.2 That is what HSBC executives may
8.4
be thinking after agreeing to pay
7.3 SFr40m ($43m) of compensation in
return for the Geneva prosecutor
dropping its four-month-old
investigation into alleged money
laundering at its Swiss private
750 bank.
However, HSBC is hardly in the
clear over allegations of past
2010 11 12 13 14 wrongdoing at its Swiss arm.
It is still being investigated over
Cost efficiency ratio tax evasion and money-laundering
700 % allegations in other countries
including the US, France, Belgium
67.3 and Argentina. It recently posted
62.8 €1bn bail in France over allegations
57.5 59.6
55.2 that its Swiss unit helped French
citizens to avoid taxes.
650 Nor is the Swiss tax evasion and
money-laundering issue the only
legal problem on HSBC’s horizon.
The “legal proceedings and
regulatory matters” section of its
annual report is almost 10 pages.
600 Areas where the bank could still
find itself in legal hot water include
2010 11 12 13 14 investigations into rigging foreign
exchange markets, manipulation of
Mar 2013
Total assets Libor interest rates, mis-selling of
Bank unveils
$tn US mortgage securities,
sweeping job cuts Sep 2014 550 involvement in the Bernard Madoff
Bank agrees to pay Ponzi scheme and manipulation of
as part of its $1bn 2.7 2.7
$550m to settle US 2.5 2.6 2.6 precious metal prices.
savings plan
allegations that it missold The latest scandal at the bank’s
mortgage-backed door is the US investigation into
securities alleged bribery of officials at Fifa.
500 The bank is now trying to assess
Jul 2012 the extent of its involvement.
HSBC’s chief compliance Feb 2015 These issues are all important for
officer steps down as bank Swiss prosecutors raid HSBC HSBC because it is operating under
takes a $700m charge to offices as part of a a US deferred prosecution
cover US regulatory fines money-laundering probe agreement until December 2017.
450 Breaching the agreement could put
2010 11 12 13 14 its dollar clearing licence at risk.
13 14 15 Martin Arnold
Source: company Photo: Bloomberg
one of the country’s top 10 biggest banks
at the time.
However, after its gutsy opening
move, HSBC failed to invest enough in
Brazil to keep up with the likes of Bra-
desco and Itaú, or to adapt to the rapid-
ly-developing industry, boosted by the
stabilisation of Brazil’s economy after a
succession of crises.
“HSBC ended up with many
branches, but ones that weren’t profita-
ble,” says Luís Miguel Santacreu at Aus-
tin Asis, a banking sector consultancy in
São Paulo
“The right thing to do would have
been to either attract more clients or
close the lossmaking branches, but it
did neither,” says Mr Santacreu.
Last year, HSBC made a loss of $247m
in Brazil, where it is the seventh-largest
bank by assets.
It is a similar story in Turkey, where
HSBC’s sale of its lossmaking operations
is entering the second round of bidding.
Qatar National Bank, BNP Paribas and
ING are among those expected to take
part with bids valuing the business at
close to its $1.1bn book value.
For some investors, however, there is
still a question of whether HSBC should
sell other struggling operations, such as
its Mexican business or its US retail unit.
“Are they really the best owner of every-
thing they have got?” asks a top 20
investor. “My personal feeling is they
will have to exit Mexico too — they just
can’t compete.”
See Lombard
announcing an offer for Tower Group,
which caused a 32 per cent surge in the
company’s stock, the SEC said. The SEC
did not name Euroins as a defendant in
its lawsuit.
In December 2012, an entity named
PST Capital Group filed a tender offer
for Rocky Mountain, which caused a 4.6
per cent jump in the company’s shares,
the SEC said. But there is no indication
that PST Capital, which is named in the
SEC lawsuit, is a legitimate company
and to the extent it actually exists, it is
operated from Sofia, the regulator said.
Mr Nedev, 37, used a brokerage
account held in the name of Strategic
Capital Partners Muster Ltd and held
positions in Avon, Tower Group and
Rocky Mountain before the fake tender
offers, the SEC said. An account in the
name of Strategic Wealth Investments
also held positions in the companies and
took advantage of the hoax bids.
It is unclear whether Mr Nedev has a
lawyer and he could not be reached for
comment.
20
Swiss failure to nail HSBC means critics should eat hats, restore heads
It has become reflexive to demand
resignations when news breaks
regarding the past misdeeds of banks.
So whose heads should roll, now that
the Geneva prosecutor says that it will
pursue no criminal action against
HSBC for alleged money laundering?
By rights, Margaret Hodge, the Joe
McCarthy of the last parliament,
should step down forthwith as chair of
the public accounts committee. The
Labour MP called for Rona Fairhead,
an HSBC director (and former FT
Group chief executive) to resign as
chair of the BBC Trust after Swiss
investigators raided HSBC’s private
bank in February. But frustratingly Ms
Hodge is already seeking “new
challenges”, as chief executives do who
have overplayed their hands.
Former Citi and Credit Suisse
executive Robert Jenkins, meanwhile,
Banks
Watchdog fines
Lloyds £100m
over PPI claims
FCA hits lender that had
most customers who
bought insurance product
EMMA DUNKLEY AND CAROLINE BINHAM
Lloyds Banking Group is to be hit with a
record fine of more than £100m for mis-
handling complaints over payment pro-
tection insurance in one of the costliest
mis-selling scandals in UK retail bank-
ing.
The Financial Conduct Authority is
today expected to land the state-backed
lender with its largest penalty over PPI
mis-selling, according to people familiar
with the situation.
The size of the fine being handed out
to Lloyds reflects the fact that the bank
has many more customers than other
lenders who bought the insurance prod-
uct, which was meant to keep up repay-
ments on loans should they fall sick or
lose their job, according to a person
close to the matter.
The fine underscores PPI as one of the
worst scandals in recent British banking
history, with a total £24bn set aside to
date by lenders to cover compensation.
It comes only weeks after the watch-
dog fined Clydesdale Bank with a then
record £21m for PPI failings that
included staff falsifying information on
its policies.
Lloyds, the largest mortgage lender in
the country, has been the worst hit by
PPI compensation costs. It has ear-
marked £12bn for compensation pay-
ments, of which about £10bn has been
paid out.
The FCA’s predecessor, the Financial
Services Authority, fined Lloyds £4.3m
Food & drug
Morrison shareholders vote against pay policy M&S chief wins 32% pay rise
ANDREA FELSTED
— SENIOR RETAIL CORRESPONDENT
Wm Morrison has suffered a significant
protest vote against its pay policies
after the £1m bonus paid to ousted
chief executive Dalton Philips.
At Morrison’s annual meeting in Brad-
ford on Thursday, 36.56 per cent of the
votes cast were against the company’s
remuneration report. This was based on
the proxy vote and could change slightly
when the votes cast at the meeting are
included.
It is a powerful protest from investors
over the remuneration paid to Mr
Philips, who was ousted in January, to be
replaced a month later with former
Tesco executive David Potts.
Morrison revealed in its annual report
at the end of April that Mr Philips
wrote that HSBC chairman Douglas
Flint should go. It would be imprudent
to demand that Mr Jenkins resign as
adjunct professor at the London
Business School, since new revelations
could reinvigorate his argument. HSBC
is still under investigation for alleged
tax evasion in a slew of countries,
including the US. But perhaps he could
resign from the committee of his local
golf club, if he is a member of it?
There is a problem with reacting to
damaging news by shrieking “Off with
their heads!” Sometimes misdeeds turn
out to be less heinous than first
imagined. The Swiss raiders, described
as “a couple of men in ill-fitting suits
rather than a Swat team” found
nothing serious they thought they
could pin on HSBC, which is paying a
SFr40m (£28m) settlement for
organisational failings.
The firestorm around HSBC in
parliament and the press earlier this
year was triggered by the trappings of a
story rather than material facts. We
had the sexy word “raid” and the
publication of the names of some
celebrities who banked with HSBC in
Switzerland. But Her Majesty’s
in February 2013 for failings that
delayed customers getting redress for
PPI.
The bank said this year that it was
freezing deferred bonuses from 2012-13
for management who were on the group
executive committee during that
period, until the conclusion of the FCA’s
enforcement investigation into PPI
complaint handling.
The bank stated at the time that it was
“working with the regulator to resolve
these issues and we continue to ensure
our customers’ complaints are
addressed efficiently and fairly.
“The board believes this is a responsi-
ble, precautionary and prudent
approach, as it wants to retain flexibility
to consider the release of shares
under these deferred bonus awards at
the conclusion of the investigation,” it
added.
Redress costs have been worse than
expected across the banking industry,
rising to £424.5m in January this year —
the highest level for 14 months. After a
slight dip in February, monthly PPI
payouts crept back up in March to
£399m.
The watchdog announced at the start
of the year that it could impose a time
limit for PPI mis-selling complaints,
which would help draw a line under the
scandal for lenders.
However, the FCA said last week that
it was considering whether “additional
rules” and guidance were required to
deal with complaints from customers
who had been mis-sold PPI, in a move
that could hit the banks with higher
costs.
Lloyds and the FCA declined to com-
ment.
received a £1m bonus, taking his total
pay for the year to the end of January to
£2.1m.
At the meeting Andrew Higginson,
chairman, said that the amount paid to
Mr Philips was the legal minimum.
Despite the pay protest, Sir Ken Mor-
rison, who ran the company for 50
years, said he backed Mr Potts and Mr
Higginson, and urged shareholders to
give them time to turn round the com-
pany. His comments are in stark con-
trast to a year ago, when Sir Ken
launched an outspoken assault on the
management of the supermarket chain
he built up, saying that Mr Philips was
talking “bullshit”.
The developments come as Tesco has
appointed HSBC to sell its Korea busi-
ness, which could be worth about £4bn,
according to two people familiar with
★ FINANCIAL TIMES
UK COMPANIES
Revenue & Customs received a dossier
listing possible tax evaders in 2010,
from whom it has been wringing
settlements ever since.
The Conservatives are back in
government with a majority. The party
claims to be a champion of the City in
Europe. Championing begins at home,
though. Ministers should shoo
watchdogs towards consolidating
prudential regulation rather than
extending it. Penal measures such as
the bank levy, which could drive
multinational banks such as HSBC
offshore, are ripe for abolition.
Pundits, for their part, should think
twice before calling for directors to
resign. Too often it is a cheap shot, as
the cheap shots at the start of this
article illustrate.
Worldpay payday
The new issues market could at last get
a decent post-election bone to gnaw on
in the form of Worldpay. The payments
group is tipped to float this autumn at
an enterprise value of over £6bn.
Worldpay belonged to Royal Bank of
Cleaner diesel
Matthey says
technology
has moved on
the situation. Tesco declined to com-
ment on the sale, which was first
reported by Reuters.
Some analysts believe that Tesco’s
debt levels are unsustainable and it
must find ways to cut its borrowings,
with debt and debt equivalents of
£22bn, and trading profit of less than
£1bn in the year to the end of February.
However, Dave Lewis, chief executive
of Tesco, has insisted there will be no fire
sale of Tesco’s international assets. Peo-
ple close to the situation have suggested
that Mr Lewis is less keen on the busi-
ness in Korea than other Asian assets.
The retailer, which was plunged into
turmoil last autumn when it revealed
that its estimate of first-half profit had
been overstated by £250m, is already
selling a majority stake in Dunnhumby,
which could be worth up to £2bn.
Scotland until 2011, and thus indirectly
to the taxpayer. Scope for grumbling if
owners Bain Capital and Advent make
pots of money from the initial public
offering is limited by the fact that EU
competition regulators ordered RBS to
sell Worldpay as a condition of its state
bailout.
Just as well. The private equity
owners are set to do nicely from their
risk-taking. They paid around £2bn for
the business, invested some £700m
and are set to get a valuation of £4bn
or more for the shares, assuming net
debt of some £2bn. Listing rules
require a free float of at least 25 per
cent, so shares worth £1bn or more
would need to be sold.
Fund managers can have fun
haggling with book runners such as
Goldman Sachs over the extent to
which Worldpay is a disruptive fintech
group or a staid payments plumbing
provider.
Worldpay’s peer group suggests a
capacious pricing range of 10 to 20
times trailing earnings to enterprise
value. The implied figure for Worldpay
is 11 times at the low end. Let battle
commence.
Diesel is here to stay, says Johnson
Matthey, the world’s largest supplier of
catalytic converters.
The FTSE 100 chemicals maker has
expressed its faith that the fuel has a
long-term future in passenger vehicles
despite what carmakers increasingly
see as a “demonisation of diesel”.
Comments from the mayors of Paris
and London have stirred fears among
manufacturers that policy makers
will limit the urban use of diesel cars,
which emit less carbon dioxide than
their petrol equivalents but produce
harmful additional pollutants such as
nitrogen dioxide.
But Robert MacLeod, Johnson
General retailers
ANDREA FELSTED AND
NATHALIE THOMAS
Marc Bolland, chief executive of Marks
and Spencer, has secured a healthy pay
rise after the UK high street stalwart
achieved its first increase in underlying
annual profits for four years.
Mr Bolland banked total pay and bene-
fits of £2.08m for the year to March
2015, a 32 per cent increase on the
£1.57m he received the previous year.
The rise is due to a £596,000 bonus for
last year — Mr Bolland did not receive an
annual bonus for 2013-14 as profits fell
short of the required threshold. Mr Bol-
land, who joined M&S in May 2010, last
month unveiled its first rise in annual
underlying profit since he took charge.
Pre-tax profit improved from
£622.9m to £661m in the year to March
Money mumagers
Just 7 per cent of UK funds are run by
women. The news is discouraging at a
time when female chaps are making
welcome inroads into boardrooms.
There are some talented women fund
managers around. One thinks of
Anne Richards, Sue Noffke
and . . .er . . . Katherine Garrett-Cox.
But they are too few to lift the average.
The scarcity leads to silly
pigeonholing, long after the
businesslike manner of Mercury’s Carol
Galley earned her the sobriquet “The
Ice Maiden”. Any high-flying female
fund manager with more than one kid
is by definition “Superwoman”.
Lombard knows what it’s like to
Have it All, combining a low-flying
career as a journalist with helping raise
a family. Couldn’t have done it without
a man’s innate talent for multitasking,
of course. Or a nanny, sundry au pairs
and the homework clubs of the kids’
private schools. Expect those
superwomen get a bit of help too.
jonathan.guthrie@ft.com
Matthey chief executive (who took
over from Neil Carson, above, last
year), said any action would exclude
the latest, relatively clean diesel
technology, so diesel would remain.
“If the world turns round and says
we’re going to ban all diesel cars . . .
then we’ll have a separate problem,
which is CO2,” he said. “We need to
get more people using more new
diesel cars and — in a perfect world
— scrap the old ones.”
Johnson Matthey reported a
22 per cent rise in pre-tax profit to
£496m in the year to the end of
March, despite a 10 per cent fall in
revenues to £10.1bn. Andy Sharman
Geoff Pugh/Rex Shutterstock
28, thanks in part to a jump in the gross
margin — the difference in the price at
which it buys and sells goods. It followed
the first increase in underlying sales of
clothing and homewares for four years
unveiled in April, helped by the
impending arrival of a suede skirt that
had caught the fashion press’s attention.
Three other directors received total
remuneration of more than £1m,
helped by the payment of a bonus for
the year to March 2015. John Dixon,
head of non-food businesses, saw his
pay lift from £939,000 to £1.1m. The
pay of Steve Rowe, director of food,
almost doubled from £786,000 to £1.4m
after a £653,000 bonus. Laura Wade-
Gery, director of multichannel, received
a £219,000 bonus despite high-profile
problems with M&S’s website. This
lifted her pay from £883,000 to £1.04m.
Friday 5 June 2015
City
Insider
Edited by
Harriet Agnew
harriet.agnew@ft.com
Edi Truell
Expensive friendship
Friendship and money mix like oil
and water. So said reluctant mafia
man Michael Corleone in The
Godfather. For Edi Truell, the well-
connected founder of Tungsten
Corp, the recent share performance
of his Aim-quoted digital invoicing
company may be testing that
maxim. Several of Truell’s City
friends who invested in Tungsten
are now sitting on vast paper
losses, as the company has come
under repeated attack from short
sellers. Michael Spencer, the CEO of
interdealer broker ICAP, in 2013
stumped up over £500k to buy
shares at a price north of 200p.
Spencer, who this weekend is
celebrating his 60th birthday in
Marrakech, was a Tungsten non-
exec before stepping down. Hedgie
Crispin Odey is one of the
company’s biggest shareholders.
Others to buy into Truell’s dream
include his brother Danny, chief
investment officer of the Wellcome
Trust, and veteran UK banker Peter
Kiernan. All will now be feeling a
sting in their pockets as Tungsten
shares slumped below 80p a share
this week, down from 225p at its
2013 listing. Truell’s friends will at
least be relieved that he has been
backing his own horse, buying up
over £4m of shares since January.
Sepp Blatter
Boss blues
Sepp Blatter did his damnedest to
brainwash the 209 Fifa delegates
who assembled last Friday in Zurich
to vote on the next president. In the
break while the voting booths were
being set up, a song by self-
professed 1950s “Queen of the
Blues” Dinah Washington floated
gently through the room. Its lyrics:
“Don’t want no trouble, I’ve got to
be the boss. / And if you can’t play
it my way well, now baby get lost. / I
try and stop your cheating, but I
just don’t have the time. / I have so
many men that they are all
standing in line.” It worked —
temporarily — as Blatter was
comprehensively re-elected. But to
misquote another Dinah hit — what
a difference four days make.
Javier Lopez
Winton goes wacky
Is Winton turning into Google? Just
months after the $30bn+ hedge
fund formed Winton Technology
Ventures to invest in big data
opportunities, the firm has hired a
chief food evangelist. In a haze of
Silicon Valley cuddliness, the job
title calls to mind Google’s jolly
good fellow (Buddhist monk
Chade-Meng Tan) or AOL’s digital
prophet (David Shing). Back in
Hammersmith, Spaniard Javier
Lopez (one-time head chef at
JPMorgan, who has also worked
with Google) has been redoing
Winton’s menus. City Insider hears
that the board — where City
grandee Sir David Walker is
chairman — has already sampled
the delights. Now Winton’s army of
quants and PhDs are being fortified
with food that is local, nutritious
and imaginative. And — crucially
for the poorly-paid staff — free of
charge.
Jayne-Anne Gadhia
Sexing up Virgin
What do banking and punk rock
have in common? Rather a lot,
believes Virgin Money CEO Jayne-
Anne Gadhia. City Insider hears
that her personal blog next week
will expand on the potential links
between pogo-ing and PPI. And
chart how the challenger banks
(though she prefers the term
“disrupters”) are shaking up the
high street lenders just like the Sex
Pistols took the establishment by
storm in the 1970s. Gadhia’s blog
has become required reading in the
City since she started documenting
her London Marathon training with
one Mark Carney. So will her next
post be a case of God Save the
Queen (of disruptive finance)? Or
more along the lines of Never Mind
the Bankers . . .
..
Friday 5 June 2015
Songkick and Crowdsurge to form a double act
Sites join forces to take on
Live Nation and give
musicians greater control
TIM BRADSHAW — SAN FRANCISCO
ROBERT COOKSON — LONDON
Songkick, the London-based concert
listings service, is merging with artist-
led ticketing site Crowdsurge, as the pair
raises $16m in new funding from Len
Blavatnik’s Access Industries.
The deal marks the latest attempt to
provide musicians with greater control
over live music sales, a growing market
that has long been dominated by Live
Nation and its subsidiary Ticketmaster.
Brooklyn-based Crowdsurge is used
by 500 artists, including Ellie Goulding,
Paul McCartney and The xx, to sell con-
cert tickets directly using its white-
label technology, rather than via an
intermediary such as Ticketmaster.
In teaming up with Songkick, which
has a community of about 10m fans who
use its site to track forthcoming con-
‘Both of us have been
obsessed with the same
problem . . . from
different points of view’
certs put on by their favourite artists,
the two companies hope to strengthen
the connection between musicians and
audiences.
“Both of us have been obsessed with
the same underlying problem,” said Ian
Hogarth, Songkick’s chief executive and
co-founder, referring to the fact that on
average half of all concert tickets go
unsold. “But [we have been] coming at
it from different points of view, experi-
ence and expertise.”
They were “joining forces”, he added
“not just to help a larger audience know
about the show, but also make it more
seamless to purchase the ticket”.
Matt Jones, the Crowdsurge founder,
said: “We both had the same idea of
what a modern ticketing business would
look like.”
Songkick provides the option to buy
tickets for one in four concerts in Lon-
don and hopes to expand in the US.
It will receive a boost from having a
new backer in Access, which is an inves-
tor in Crowdsurge and owns Warner
Music, a big label, as well as stakes in
Support services
Pets at Home brushes up well in first annual results
ELIZABETH PATON
AND KADHIM SHUBBER
Pets at Home has delivered a well-
groomed set of maiden full-year results
as the growing popularity of VIP serv-
ices including so-called “pawdicures”
and nutritional advice pushed profits
up 66 per cent.
The UK pet retailer and animal-care
group, which listed on the London Stock
Exchange last year, reported pre-tax
profits of £87m in the year to March 31,
up from £52.2m in the previous period,
as it increased the proportion of more
profitable sales such as grooming and
veterinary services.
However, the shares dropped almost 5
per cent in early London trading, inter-
rupting a run of growth that has seen
shares climb 33 per cent since January.
“We’ve delivered everything we said
we were going to deliver at the IPO. The
one thing that I’ve learnt through the
Legal Notices
★ FINANCIAL TIMES
UK COMPANIES
Travel & leisure. Live music sales
After collecting the streaming services Spotify and
fans’ email Deezer. Songkick’s other backers are
addresses, The Index Ventures and Sequoia, venture
XX was able to capital groups.
host and sell The bulk of musicians’ incomes are
half of all the derived from live shows, but the process
tickets for a of selling and buying tickets has
series of shows changed little since the 1990s.
directly “Although there’s been a lot of growth
Redferns via Getty Images
in both streaming music services and
social networks increasing discovery [of
new music], that hasn’t yet been
plugged in to the ticket purchasing and
discovery process,” Mr Hogarth said.
“It’s natural that artists would want to
take control of their most important
customer relationships in their most
important business area.”
The xx, the London-based group that
won the Mercury music prize for its Tech coverage
debut album in 2010, collected email For the latest
addresses of fans by holding ballots on news and
analysis from the
Crowdsurge for tour tickets. entertainment
Using those details, the band was able industry, go to
to host and sell half of all the tickets for a ft.com/tech
series of outdoor shows directly, con-
last year is that I can’t control the share in line with expectations and that the
price,” said Nick Wood, chief executive. negative share price reaction did not
The company, which floated in March reflect the fundamental performance of
2014 at 245p a share, reported like-for- the business. “It’s a function of the fact
like sales growth of 4.2 per cent and said shares have been seen a strong run up to
that the number of customers in its VIP now and we haven’t seen a significant
loyalty scheme has jumped to 3.2m outperformance in the results,” he said.
from 2m in the previous financial year.
The scheme gives the retailer targeted
market opportunities by watching their
purchasing habits. Mr Wood said aver-
age basket size is £20 for VIP members,
compared with £16 for non-members.
Revenues rose 9.6 per cent to £729m
and gross profit margins bounced 40
basis points higher to 4.2 per cent.
However, operating profit margins
remained flat, weighed down by costs
associated with being a publicly limited
company, as well as investment in staff
training, marketing and its distribution
centre, the company said.
Adam Tomlinson, an analyst at Dogged efforts: ‘pawdicures’ have
Liberum, said the “strong” figures were helped the group meet its IPO goals
Support services
Top 100 law firms upbeat as turnover rises
LINDSAY FORTADO will begin reporting their individual
profit and revenue from about early
Turnover at Britain’s 100 largest law
July. Several of the top firms, including
firms rose 6.3 per cent on average in the
Clifford Chance and Slaughter and May,
last fiscal year, driven by mergers
have announced pay hikes for their
among the smaller to midsize firms,
associates. At the top 100 firms, income
and lawyers are hopeful that the mar-
from non-partner lawyers was up 2 per
ket will continue to improve, according
cent for the year that ended April 30.
to research.
But two-thirds of that was attributed to
“They’re cautiously optimistic, they’re a greater number of lawyers because of
not dancing around,” said Jeremy Black, consolidation rather than a higher
a partner in Deloitte’s professional serv- demand for legal services, Mr Black
ices practice, which conducted the said.
research. “They’re looking at it in a posi- Firms based in London without a
tive light instead of being super con- strong European presence performed
cerned. They think there should be good the best because the slumping euro
opportunities. Certainly the economy affected those that rely on the conti-
here is reasonably strong, the US econ- nent. “The London market has been
omy looks reasonably strong and parts strong,” Mr Black said. “Firms that are
of Europe are looking stronger.” global have faced headwinds. The Euro-
The “magic circle”, the elite group of pean markets have been weak, and
London-based, international law firms, there’s an exchange-rate impact, so if
21
Len Blavatnik’s investment in
Profile Crowdsurge is the latest sign of his
growing appetite for music and
ecommerce businesses.
The billionaire, who was born in
Billionaire Odessa, Ukraine, was declared Britain’s
richest man this year with a £13bn
with keen fortune, according to the 2015 Sunday
taste for Times Rich List.
music and The 57-year-old made much of his
ecommerce fortune after the collapse of the Soviet
Union, taking advantage of a
tumultuous privatisation process to
acquire stakes in oil and aluminium
companies.
But Access Industries, his investment
vehicle, has since diversified. It holds
assets ranging from chemicals to real
estate and technology. Recent
investments include Rocket Internet, the
German internet group, and GetTaxi, a
taxi-booking app.
Mr Blavatnik entered the music
business in 2011 through a $3.3bn
purchase of Warner Music, the smallest
of the three major record companies. In
2013, he supported Warner Music’s
£487m acquisition of former EMI labels
such as Parlophone, home to Coldplay
and Pink Floyd.
Access also holds stakes in Spotify
and Deezer, the world’s two biggest
music subscription streaming services.
In 2010, he donated £75m to Oxford
university to build the Blavatnik School
of Government. Robert Cookson
trolling service fees and offering fans a
closer connection with the band.
Live music has provided a lifeline to
many artists as CD sales have tumbled.
Global live music revenues hit $26.5bn
last year, an increase of 10 per cent from
2010, according to the Global Entertain-
ment and Media Outlook report from
PwC, the professional services firm.
Over the same period, recorded music
revenues have fallen 14 per cent to
about $19.3bn.
Alice Enders, music analyst at Enders
Analysis, cautioned that the ticketing
sector was highly competitive and that
Songkick and Crowdsurge had a big
challenge in taking on Live Nation. The
world’s biggest concert promoter, which
bought Ticketmaster in 2009 for
$400m, owns many of the world’s big-
gest concert venues.
In addition, Live Nation’s artist man-
agement business is growing rapidly
and boasts more than 280 of the world’s
most successful artists, including
Madonna, Lady Gaga and Nicki Minaj.
He added that staff cost growth of 13
per cent, and a forecast faster rise in the
current financial year, showed Pets at
Home was investing in its core business.
The group’s management said VIP
members accounted for 65 per cent of
store revenues in first-quarter trading.
The UK pet care market continues to
be one of the best performers among
developed economies, with sales
expanding 2 per cent to $7bn last year,
according to Euromonitor Interna-
tional. Pets at Home has 400 stores and
more than 330 veterinary practices.
Its medium-term target is 500 UK
stores, more than 700 veterinary prac-
tices and 300 groom rooms, in which
animals are pampered. This year it
plans to unveil up to 30 new stores, 55
vet practices and up to 60 groom rooms.
Pets at Home said it would pay a
maiden total dividend of 5.4p per share.
The shares were down 1.9 per cent at
274.8p yesterday.
you had a business with lots of offices
throughout Europe, the value of those
offices have been reduced.”
Firms that ranked in the top 50 but
not the top 10 had the strongest revenue
figures, according to Deloitte. Firms
ranked 11 to 25 had a 4.4 per cent fee
income increase, while those that were
in the 26 to 50 bracket saw revenue
growth of 6.9 per cent, much of that
driven by more fees collected.
Firms in the 51 to 100 size bracket
grew through consolidation and lateral
hires, though the average fees per non-
partner lawyer grew by less than 1 per
cent.
Deal work is starting to pick up for law
firms, while real estate advice work has
been “really strong, litigation has been
reasonably strong and private client
work has been reasonably stable,” Mr
Black said.
22 ★★★ FINANCIAL TIMES Friday 5 June 2015

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.59% -0.46% -0.68% -1.31% -0.86% -0.38% -0.69% -0.136% -1.18%

No change
0.07% 0.089% 0.196% 0.290%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
May 05 - Jun 04 Index All World May 05 - Jun 04 Index All World May 05 - Jun 04 Index All World May 05 - Jun 04 Index All World May 05 - Jun 04 Index All World May 05 - Jun 04 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
20,488.19
2,101.65 15,173.94 6,985.95 2,104.58
2,089.46 6,950.46
14,987.05 11,327.68 11,340.60 19,531.63 2,072.86
Day -0.59% Month -0.30% Year 9.24% Day -1.11% Month -2.41% Year 1.35% Day -1.31% Month -1.76% Year 0.65% Day -0.69% Month -2.89% Year NaN% Day 0.07% Month 4.90% Year 36.28% Day 0.47% Month -2.55% Year 3.20%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
5,075.84 3,482.70
44,853.26 44,591.10 27,755.54 27,551.89
4,939.33 1,557.25 11,163.60 11,146.10 3,345.00
1,547.72
Day -0.46% Month 1.43% Year 19.90% Day -0.32% Month -1.40% Year 6.32% Day -0.86% Month -1.35% Year 13.38% Day -1.08% Month -2.10% Year 3.43% Day -0.38% Month -2.07% Year 18.29% Day -0.14% Month -4.08% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
4,947.10
58,051.61 23,336.50
17,928.20 17,952.56 4,229.27
53,522.91 4,981.59 4,987.13 22,659.85 26,717.37 26,813.42
Day -0.68% Month -0.36% Year 7.40% Day -1.32% Month -4.81% Year 2.86% Day -0.93% Month -1.18% Year 10.73% Day -1.15% Month 0.51% Year 7.93% Day 0.76% Month 11.38% Year 142.71% Day -0.09% Month -0.73% Year 7.86%

Country Index Jun 04 Jun 03 Country Index Jun 04 Jun 03 Country Index Jun 04 Jun 03 Country Index Jun 04 Jun 03 Country Index Jun 04 Jun 03 Country Index Jun 04 Jun 03
Argentina Merval 11210.93 11200.32 Cyprus CSE M&P Gen 81.04 81.56 Italy FTSE Italia All-Share 24936.88 25202.61 Philippines Manila Comp 7553.65 7561.67 Taiwan Weighted Pr 9348.63 9556.52 Cross-Border DJ Global Titans ($) 243.48 244.96
Australia All Ordinaries 5511.30 5588.30 Czech Republic
PX 1018.76 1017.31 FTSE Italia Mid Cap 33483.72 33649.94 Poland Wig 54749.74 55045.40 Thailand Bangkok SET 1490.90 1482.07 Euro Stoxx 50 (Eur) 3560.65 3583.82
S&P/ASX 200 5504.30 5583.60 Denmark OMXC Copenahgen 20 978.40 984.54 FTSE MIB 23336.50 23608.83 Portugal PSI 20 5872.98 5936.78 Turkey BIST 100 83393.57 81420.24 Euronext 100 ID 973.51 982.26
S&P/ASX 200 Res 3408.80 3471.30 Egypt EGX 30 8847.59 8745.04 Japan 2nd Section 4963.03 4942.88 PSI General 2675.89 2704.94 UAE Abu Dhabi General Index 4589.24 4589.78 FTSE 4Good Global ($) 5753.59 5796.57
Austria ATX 2612.35 2578.59 Estonia OMX Tallinn 863.50 867.39 Nikkei 225 20488.19 20473.51 Romania BET Index 7505.44 7538.74 UK FT 30 3046.00 3035.80 FTSE All World 286.01 287.99
Belgium BEL 20 3692.07 3721.76 Finland OMX Helsinki General 8612.57 8665.33 S&P Topix 150 1412.15 1409.19 Russia Micex Index 1635.90 1628.87 FTSE 100 6859.24 6950.46 FTSE E300 1557.25 1570.76
BEL Mid 5938.60 5981.40 France CAC 40 4987.13 5034.17 Topix 1673.89 1669.99 RTX 922.91 947.28 FTSE 4Good UK 6157.86 6236.63 FTSE Eurotop 100 3110.34 3137.21
Brazil Bovespa 53522.91 54236.44 SBF 120 3931.78 3968.43 Jordan Amman SE 2184.96 2187.57 Saudi-Arabia TADAWUL All Share Index 9678.75 9716.71 FTSE All Share 3740.39 3786.84 FTSE Global 100 ($) 1365.98 1374.35
Canada S&P/TSX 60 873.40 Germany
883.70 M-DAX 20278.63 20438.18 Kenya NSE 20 4790.50 4816.66 Singapore FTSE Straits Times 3345.00 3349.84 FTSE techMARK 100 4020.79 4052.35 FTSE Gold Min ($) 1202.03 1216.53
S&P/TSX Comp 14987.05 15154.68 TecDAX 1692.30 1703.71 Kuwait KSX Market Index 6313.04 6298.29 Slovakia SAX 247.84 250.35 USA DJ Composite 6279.40 6310.39 FTSE Latibex Top (Eur) 3427.20 3454.50
S&P/TSX Met & Min 752.92 768.14 XETRA Dax 11340.60 11419.62 Latvia OMX Riga 446.69 444.80 Slovenia SBI TOP 790.57 792.09 DJ Industrial 17952.56 18076.27 FTSE Multinationals ($) 1598.92 1592.27
Chile IGPA Gen 19322.48 19449.37
Greece Athens Gen 827.12 838.22 Lithuania OMX Vilnius 502.26 503.77 South Africa FTSE/JSE All Share 51323.68 51850.67 DJ Transport 8476.27 8510.04 FTSE World ($) 503.87 507.39
China FTSE A200 13221.26 13102.15 FTSE/ASE 20 247.88 251.98 Luxembourg LuxX 1722.98 1762.57 FTSE/JSE Res 20 41068.49 42350.94 DJ Utilities 571.61 571.44 FTSEurofirst 100 (Eur) 4443.62 4489.91
FTSE B35 15634.70 15691.33
Hong Kong Hang Seng 27551.89 27657.47 Malaysia FTSE Bursa KLCI 1741.48 1749.17 FTSE/JSE Top 40 45585.39 46083.96 Nasdaq 100 4499.46 4519.86 FTSEurofirst 80 (Eur) 4752.60 4790.42
Shanghai A 5180.26 5141.18 HS China Enterprise 14127.01 14114.94 Mexico IPC 44591.10 44732.72 South Korea Kospi 2072.86 2063.16 Nasdaq Cmp 5075.84 5099.23 MSCI ACWI Fr ($) 436.44 434.99
Shanghai B 531.33 532.61 HSCC Red Chip 5137.67 5183.09 Morocco MASI 9674.37 9687.63 Kospi 200 255.47 254.11 NYSE Comp 11031.55 11107.93 MSCI All World ($) 1789.91 1782.39
Shanghai Comp 4947.10 4909.98
Hungary Bux 22303.77 22389.83 Netherlands AEX 485.29 487.74 Spain IBEX 35 11146.10 11267.60 S&P 500 2101.65 2114.07 MSCI Europe (Eur) 1532.60 1526.36
Shenzhen A 3164.40 3182.99
India BSE Sensex 26813.42 26837.20 AEX All Share 739.89 744.13 Sri Lanka CSE All Share 7120.91 7149.46 Wilshire 5000 22231.31 22357.42 MSCI Pacific ($) 2511.35 2530.51
Shenzhen B 1597.36 1601.81 S&P CNX 500 6704.75 6703.45 New Zealand NZX 50 5865.44 5858.71 Sweden OMX Stockholm 30 1632.87 1641.69 Venezuela IBC 12442.52 12406.61 S&P Euro (Eur) 1571.70 1585.09
Colombia COLCAP 1311.78 1309.26
Indonesia Jakarta Comp 5095.82 5130.50 Nigeria SE All Share 34061.89 34044.65 OMX Stockholm AS 534.30 537.87 Vietnam VNI 568.99 567.90 S&P Europe 350 (Eur) 1601.08 1614.16
Croatia CROBEX 1733.51 1743.08
Ireland ISEQ Overall 6142.78 6185.33 Norway Oslo All Share 696.65 703.62 Switzerland SMI Index 9233.65 9253.30 S&P Global 1200 ($) 1970.45 1983.87
Israel Tel Aviv 100 14.65 14.68 Pakistan KSE 100 34085.74 33908.62 Stoxx 50 (Eur) 3376.91 3404.43
(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 Jun 04 %Chg %Chg Jun 04 %Chg %Chg Jun 04 %Chg %Chg Jun 04 %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 19.6 129.62 -0.50 Royal Dutch Shell 247.1 1918.00 -34.24 Dt.telekom Ag Na 484.4 15.54 0.00 Tokyo Electric Power ,orporated 1404.5 710.00 -36.00 Direct Line Insurance 345.40 2.5 18.6 Paypoint 1070.00 12.6 18.9 Hogg Robinson 63.00 13.5 51.8 Nonlife Insurance 2159.93 0.6 11.7
At&t 10.6 35.39 0.36 Glaxosmithkline 150.9 1411.50 -26.00 Nestle N 467.1 67.96 0.00 Mitsubishi Ufj Fin,. 725.2 924.30 10.60 Taylor Wimpey 188.50 2.0 36.8 Workspace 975.00 9.2 27.5 S&U 2190.00 8.9 11.6 Automobiles & Parts 8615.77 -0.1 7.1
Verizon Communications 10.3 48.29 -0.79 Lloyds Banking 141.9 87.50 -1.43 Abb Ltd N 464.0 19.95 0.00 Mizuho Fin,. 666.3 269.10 2.30 Babcock Int 1143.00 1.3 8.3 Cairn Energy 183.20 7.6 2.6 Hochschild Mining 102.00 7.7 15.9 Food Producers 7880.07 -0.3 -3.0
Facebook Class A 8.3 82.17 -0.27 Royal Dutch Shell 136.1 1901.50 -35.16 Enel 441.9 4.37 0.00 Softbank . 657.7 7348.00 -87.00 Smiths 1211.00 1.2 10.7 Dairy Crest 543.00 5.8 8.8 Vp 734.50 7.3 16.0 General Industrials 4422.94 -0.4 13.8
Bank Of America 4.9 16.82 -0.12 Hsbc Holdings 133.8 618.80 -6.50 Daimler Ag Na O.n. 397.2 83.80 0.00 Sumitomo Mitsui Fin,. 509.9 5677.00 103.00 Morrison (wm) Supermarkets 178.30 1.1 -2.9 Imagination 233.20 5.0 1.5 Game Digital 267.25 7.3 -25.8 Equity Investment Instruments 7697.81 -0.5 6.4
Citigroup 4.8 55.34 -0.29 Vodafone 132.8 248.10 -2.30 Roche Gs 384.7 262.63 0.00 Toyota Motor 447.9 8527.00 12.00 Royal Bank Of Scotland 351.80 0.9 -10.8 Card Factory 364.00 4.8 28.3 Carpetright 540.00 7.1 34.8 General Retailers 3285.16 -0.7 10.5
Intel 4.4 32.39 -0.34 Astrazeneca 132.3 4337.00 -53.00 Unicredit 377.7 6.53 0.00 Nomura Holdings, . 443.9 849.30 27.10 Intertek 2560.00 0.9 9.7 Kier 1388.00 4.5 -6.9 Anite 99.50 6.3 27.7 Household Goods 15249.17 -0.8 19.3
Wells Fargo & Co. 4.4 56.13 -0.79 Bhp Billiton 124.4 1323.50 -44.00 Novartis N 369.2 92.07 0.00 Thb Dai-ichi Life Insurance , 327.1 2379.50 141.00 Dixons Carphone 477.10 0.8 3.2 Indivior 240.00 4.4 60.6 Xaar 481.50 6.3 25.5 Support Services 7253.64 -0.8 12.8
Microsoft 4.4 46.54 -0.31 British American Tobacco 123.9 3520.00 -14.87 Sanofi 367.9 91.15 0.03 Sony 266.2 3773.00 18.50 Barratt Developments 604.50 0.7 28.3 Ophir Energy 131.20 4.2 -6.4 Utv Media 159.00 6.0 -9.1 Banks 4624.04 -0.9 5.7
Amazon.com 4.3 432.48 -4.11 Bp 116.1 440.15 -8.02 Intesa Sanpaolo 365.6 3.32 0.00 Mazda Motor 252.7 2717.50 56.00 Gkn 368.50 0.1 7.3 Premier Oil 165.80 4.1 -0.8 Porvair 342.00 5.6 23.5 Industrial Engineering 9419.62 -0.9 6.5
Associated British Foods 2950.00 0.0 -6.4 Galliford Try 1700.00 4.0 32.3 Innovation 30.25 5.1 0.8 Construction & Materials 4855.28 -1.1 17.9
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
Rsa Insurance 431.60 -0.1 -0.8 Ladbrokes 125.50 3.9 13.6 Brammer 314.00 5.0 -4.8 Fixed Line Telecommunication 5083.92 -1.3 11.2
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Wynn Resorts Ltd 108.70 6.65 6.52 Paypoint 1070.00 46.00 4.49 Kpn Kon 3.37 0.12 3.60 Thb Dai-ichi Life Insurance , 2379.50 141.00 6.30 Int Consolidated Airlines S.a. 526.00 -7.6 8.2 Foxtons 254.00 -9.9 59.6 Management Consulting 13.75 -12.0 -13.4 Industrial Metals 1550.19 -9.2 2.0
Dish Network 75.10 4.29 6.06 Dairy Crest 543.00 15.78 2.99 Unibail-rodamco 231.05 5.85 2.60 Ebara 635.00 27.00 4.44 National Grid 869.00 -7.1 -5.3 Moneysupermarket.com 275.80 -9.5 17.9 Batm Advanced Communications Ld 15.00 -9.1 -4.8 Forestry & Paper 15069.13 -6.1 33.5
Sba Communications 118.53 4.32 3.78 Ladbrokes 125.50 3.18 2.60 Erste Bank Ag 26.75 0.35 1.33 T&d Holdings, . 1958.50 79.00 4.20 Old Mutual 211.90 -6.8 10.8 Evraz 157.40 -8.3 3.0 Trinity Mirror 150.00 -8.7 -7.8 Gas Water & Multiutilities 5943.64 -5.2 -3.0
L Brands 88.22 2.06 2.39 Telecom Plus 811.50 19.50 2.46 Amadeus It 37.80 0.44 1.16 Toto 2136.00 83.00 4.04 Johnson Matthey 3331.00 -6.7 -1.9 Synergy Health 1736.00 -7.0 -15.2 Centaur Media 76.00 -7.9 16.9 Chemicals 11888.26 -4.4 5.4
Brown-forman Class B 99.03 2.28 2.36 Big Yellow 652.00 10.00 1.56 Klepierre 40.10 0.43 1.08 Nisshin Steel Holdings Co., 1723.00 66.00 3.98 Mondi 1399.00 -6.3 33.2 Pets At Home 275.00 -6.1 31.2 Aga Rangemaster 105.25 -7.1 -11.0 Tobacco 42642.47 -4.2 4.9
Aggreko 1535.00 -5.7 2.1 Nostrum Oil & Gas 530.00 -5.9 26.2 Goodwin 2715.00 -7.0 6.4 Beverages 14017.83 -3.8 -0.9
Downs Downs Downs Downs
Sabmiller 3403.50 -4.8 1.3 Investec 578.50 -5.5 6.8 Jpmorgan Russian Securities 336.25 -6.1 19.7 Electricity 9541.84 -3.6 -2.5
Vimpelcom 6.04 -0.33 -5.18 Moneysupermarket.com 275.80 -30.30 -9.90 Technip 59.15 -2.18 -3.55 Dainippon Screen Mfg.co., 844.00 -47.00 -5.27
British American Tobacco 3520.00 -4.6 0.6 Amec Foster Wheeler 895.00 -5.5 5.4 Afren 2.85 -5.9 -94.0 Industrial Transportation 3021.04 -3.4 6.6
Chesapeake Energy 13.07 -0.50 -3.65 Bank Of Georgia Holdings 1840.00 -115.00 -5.88 Hermes Intl 350.45 -11.85 -3.27 Tokyo Electric Power ,orporated 710.00 -36.00 -4.83
Wpp 1505.00 -4.6 11.9 Polymetal Int 533.00 -5.3 -7.5 Candover Investments 290.00 -5.8 -27.5 Pharmaceuticals & Biotech. 13128.59 -3.2 3.2
Frontier Communications 5.20 -0.19 -3.44 Booker 178.10 -10.50 -5.82 Publicise Sa 69.53 -2.20 -3.07 Nippon Suisan Kaisha, 359.00 -15.00 -4.01
British Land 836.00 -4.3 7.6 Vedanta Resources 553.00 -5.1 -3.7 Baring Emerging Europe 538.50 -5.5 8.9 Media 7369.19 -3.1 12.9
Western Digital 95.34 -2.80 -2.85 Vedanta Resources 553.00 -32.00 -5.47 Arcelormittal 10.00 -0.31 -2.96 Mitsubishi Logistics 1702.00 -59.00 -3.35
Aberdeen Asset Management 432.10 -4.3 0.0 Riverstone Energy 1018.00 -4.4 18.4 Xp Power 1603.00 -5.4 14.7 Real Estate Investment Trusts 3336.74 -3.1 9.4
Lyondellbasell Industries N.v. Class A 100.10 -2.68 -2.61 Zoopla Property 260.00 -14.60 -5.32 Edf 21.16 -0.60 -2.76 Shiseido , 2518.00 -63.50 -2.46
Rolls-royce Holdings 972.50 -4.2 11.8 Just Eat 447.60 -4.4 44.8 Capital Gearing Trust 3330.00 -5.0 1.9 Oil & Gas Producers 6985.36 -3.0 -2.1
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
Jun 04 Currency Mid Change Mid Change Mid Change Jun 04 Currency Mid Change Mid Change Mid Change Jun 04 Currency Mid Change Mid Change Mid Change Jun 04 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 9.0114 0.0047 10.1667 0.0202 13.8444 0.0381 Indonesia Indonesian Rupiah 13282.0000 61.0000 14984.7306 90.6794 20405.2899 138.8675 Poland Polish Zloty 3.6882 0.0001 4.1610 0.0062 5.6661 0.0127 ..Three Month 0.6508 -0.0014 0.7342 -0.0006 - -
Australia Australian Dollar 1.3027 0.0212 1.4697 0.0260 2.0013 0.0369 Israel Israeli Shekel 3.8364 -0.0090 4.3282 -0.0038 5.8939 -0.0007 Romania Romanian Leu 3.9319 0.0022 4.4360 0.0090 6.0406 0.0168 ..One Year 0.6507 -0.0014 0.7337 -0.0005 - -
Bahrain Bahrainin Dinar 0.3771 - 0.4254 0.0006 0.5793 0.0013 Japan Japanese Yen 124.5050 0.3600 140.4662 0.6113 191.2784 0.9770 Russia Russian Ruble 55.8410 1.6737 62.9997 1.9778 85.7891 2.7564 United States United States Dollar - - 1.1282 0.0017 1.5363 0.0034
Bolivia Bolivian Boliviano 6.9100 - 7.7958 0.0114 10.6159 0.0236 ..One Month 124.5049 0.3599 140.4662 0.6112 191.2782 0.9767 Saudi Arabia Saudi Riyal 3.7501 - 4.2309 0.0062 5.7613 0.0128 ..One Month - - 1.1282 -0.4047 1.5363 0.0034
Brazil Brazilian Real 3.1140 -0.0205 3.5131 -0.0179 4.7840 -0.0208 ..Three Month 124.5049 0.3597 140.4662 0.6113 191.2780 0.9763 Singapore Singapore Dollar 1.3471 0.0052 1.5198 0.0081 2.0696 0.0126 ..Three Month - - 1.1281 -0.4047 1.5362 0.0034
Canada Canadian Dollar 1.2467 0.0021 1.4065 0.0044 1.9153 0.0074 ..One Year 124.5040 0.3579 140.4660 0.6110 191.2782 0.9750 South Africa South African Rand 12.3504 0.0602 13.9337 0.0882 18.9741 0.1344 ..One Year - - 1.1274 -0.4047 1.5361 0.0034
Chile Chilean Peso 628.0600 3.2600 708.5755 4.7103 964.8954 7.1420 Kenya Kenyan Shilling 96.0500 -0.7000 108.3633 -0.6299 147.5626 -0.7450 South Korea South Korean Won 1113.8000 9.1500 1256.5859 12.1481 1711.1430 17.8292 Venezuela Venezuelan Bolivar Fuerte 6.3000 0.0100 7.1076 0.0217 9.6788 0.0368
China Chinese Yuan 6.2010 0.0034 6.9959 0.0141 9.5267 0.0264 Kuwait Kuwaiti Dinar 0.3019 -0.0002 0.3405 0.0003 0.4637 0.0007 Sweden Swedish Krona 8.2437 -0.0725 9.3005 -0.0681 12.6648 -0.0830 Vietnam Vietnamese Dong 21817.5000 - 24614.4758 36.0571 33518.4670 74.4339
Colombia Colombian Peso 2590.9500 22.4500 2923.1022 29.5712 3980.5051 43.2616 Malaysia Malaysian Ringgit 3.6965 0.0110 4.1704 0.0185 5.6790 0.0295 Switzerland Swiss Franc 0.9339 -0.0012 1.0536 0.0002 1.4347 0.0013 European Union Euro 0.8864 -0.0013 - - 1.3617 0.0010
Costa Rica Costa Rican Colon 535.3500 -0.1000 603.9803 0.7719 822.4640 1.6748 Mexico Mexican Peson 15.5268 0.0436 17.5172 0.0748 23.8539 0.1199 Taiwan New Taiwan Dollar 30.8630 0.0625 34.8195 0.1214 47.4152 0.2012 ..One Month 0.8863 -0.0013 - - 1.3617 0.0010
Czech Republic Czech Koruna 24.3357 -0.0596 27.4555 -0.0269 37.3872 -0.0083 New Zealand New Zealand Dollar 1.4050 0.0110 1.5851 0.0147 2.1585 0.0216 Thailand Thai Baht 33.7400 0.0500 38.0654 0.1121 51.8351 0.1919 ..Three Month 0.8862 -0.0013 - - 1.3616 0.0010
Denmark Danish Krone 6.6122 -0.0099 7.4599 -0.0003 10.1584 0.0073 Nigeria Nigerian Naira 199.0000 - 224.5112 0.3288 305.7258 0.6795 Tunisia Tunisian Dinar 1.9280 -0.0006 2.1751 0.0025 2.9619 0.0057 ..One Year 0.8855 -0.0013 - - 1.3611 0.0010
Egypt Egyptian Pound 7.6322 0.0218 8.6106 0.0371 11.7254 0.0594 Norway Norwegian Krone 7.7372 -0.0015 8.7291 0.0111 11.8867 0.0241 Turkey Turkish Lira 2.6653 -0.0197 3.0069 -0.0177 4.0947 -0.0210
Hong Kong Hong Kong Dollar 7.7520 -0.0013 8.7458 0.0114 11.9095 0.0246 Pakistan Pakistani Rupee 101.8550 0.0100 114.9125 0.1796 156.4809 0.3631 United Arab Emirates UAE Dirham 3.6732 0.0001 4.1440 0.0062 5.6431 0.0127
Hungary Hungarian Forint 275.9396 -1.5848 311.3142 -1.3294 423.9289 -1.4871 Peru Peruvian Nuevo Sol 3.1478 -0.0087 3.5513 -0.0046 4.8360 -0.0026 United Kingdom Pound Sterling 0.6509 -0.0014 0.7344 -0.0006 - -
India Indian Rupee 64.0150 0.1000 72.2215 0.2184 98.3469 0.3719 Philippines Philippine Peso 44.8225 0.0875 50.5686 0.1726 68.8613 0.2872 ..One Month 0.6509 -0.0014 0.7343 -0.0006 - -
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 Jun 04 Jun 03 Jun 02 Jun 01 May 29 Yr Ago High Low Year to date percentage changes Closing Day's Closing Day's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 3046.00 3035.80 3050.90 3056.60 3082.80 0.00 3110.40 2669.30 Forestry & Paper 40.57 Industrials 11.95 NON FINANCIALS Index 6.96 FTSE 100 Price Change FTSE 100 Price Change
Jun 04 chge% Index Jun 03 Jun 02 ago yield% Cover ratio adj Return FT 30 Div Yield 1.70 1.70 1.69 1.69 1.67 0.00 3.93 2.74 Software & Comp Serv 22.16 Real Est Invest & Tr 11.65 Equity Invest Instr 6.82 3I Group PLC 563.50 -6.00 Land Securities Group PLC 1273 1.00
FTSE 100 (100) 6859.24 -1.31 7281.93 6950.46 6928.27 6813.49 3.53 1.88 15.12 129.24 5275.69 P/E Ratio net 26.31 26.21 26.41 26.48 26.73 0.00 19.44 14.26 Household Goods & Ho 20.02 Consumer Services 11.08 Automobiles & Parts 6.57 Aberdeen Asset Management PLC 432.10 -7.10 Legal & General Group PLC 266.50 1.60
FTSE 250 (250) 18090.42 -0.95 19205.21 18263.46 18220.31 15995.49 2.40 2.18 19.11 211.06 12420.79 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Real Est Invest & Se 19.18 General Retailers 10.95 FTSE 100 Index 6.37 Admiral Group PLC 1482 -10.00 Lloyds Banking Group PLC 87.50 -1.43
FTSE 250 ex Inv Co (211) 19691.56 -0.92 20905.02 19875.06 19836.74 17391.93 2.43 2.30 17.92 234.72 13787.49 FT 30 hourly changes Oil Equipment & Serv 18.61 Nonlife Insurance 10.93 Banks 6.30 Aggreko PLC 1535 -27.00 London Stock Exchange Group PLC 2448 -37.00
FTSE 350 (350) 3801.73 -1.25 4036.00 3849.87 3838.12 3705.91 3.34 1.91 15.68 67.03 5898.61 8 9 10 11 12 13 14 15 16 High Low Construct & Material 18.20 Industrial Transport 10.73 Pharmace & Biotech 5.43 Anglo American PLC 1005 -43.00 Marks And Spencer Group PLC 578.50 -2.50
FTSE 350 ex Investment Trusts (311) 3779.69 -1.25 4012.60 3827.66 3816.17 3691.16 3.36 1.92 15.49 67.27 3019.32 3035.8 3039.1 3038.1 3040.2 3046.9 3058.9 3050.1 3050.2 3055.3 3063.3 3026.0 Technology 17.82 Life Insurance 9.88 Health Care 5.16 Antofagasta PLC 741.00 -19.00 Meggitt PLC 502.00 -1.00
FTSE 350 Higher Yield (93) 3581.87 -1.39 3802.59 3632.45 3627.17 3704.49 4.77 1.67 12.58 90.94 5659.90 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Financial Services 16.92 FTSE SmallCap Index 9.72 Health Care Eq & Srv 2.06 Arm Holdings PLC 1141 -4.00 Merlin Entertainments PLC 446.90 -4.00
FTSE 350 Lower Yield (257) 3650.34 -1.11 3875.29 3691.38 3674.35 3342.70 1.94 2.50 20.61 36.47 3823.68 Mobile Telecomms 15.19 Personal Goods 9.26 Gas Water & Multi 2.01 Ashtead Group PLC 1142 -16.00 Mondi PLC 1399 -27.00
FTSE SmallCap (287) 4796.24 -0.55 5091.80 4822.61 4816.53 4489.90 2.52 1.98 20.07 57.55 6474.46 Tech Hardware & Eq 14.98 Aerospace & Defense 9.18 Utilities 1.72
FTSE SmallCap ex Inv Co (149) 4307.77 -0.45 4573.23 4327.46 4327.37 4040.24 2.37 3.09 13.64 51.32 6109.60 FX: EFFECTIVE INDICES Media 14.50 Travel & Leisure 9.10 Beverages 1.16
Associated British Foods PLC 2950 -33.00 Morrison (Wm) Supermarkets PLC 178.30 0.20
Astrazeneca PLC 4337 -53.00 National Grid PLC 869.00 -46.50
FTSE All-Share (637) 3740.39 -1.23 3970.89 3786.84 3775.52 3641.00 3.31 1.91 15.79 65.21 5871.21 Electronic & Elec Eq 14.11 Financials 9.02 Oil & Gas 1.02
Jun 03 Jun 02 Mnth Ago Jun 04 Jun 03 Mnth Ago Aviva PLC 520.50 -1.50 Next PLC 7380 -55.00
FTSE All-Share ex Inv Co (460) 3704.58 -1.24 3932.87 3751.04 3739.99 3614.80 3.34 1.94 15.45 65.51 3008.49 Telecommunications 13.92 Chemicals 8.78 Electricity 0.71 Babcock International Group PLC 1143 7.00 Old Mutual PLC 211.90 -3.20
FTSE All-Share ex Multinationals (573) 1259.74 -0.87 1108.43 1270.81 1267.77 1138.52 2.56 2.04 19.11 14.21 2112.75 Australia 98.04 97.61 97.17 Sweden 78.66 77.93 78.19 FTSE 250 Index 12.86 Food & Drug Retailer 8.01 Oil & Gas Producers 0.41 Bae Systems PLC 505.50 -7.50 Pearson PLC 1287 -16.00
FTSE Fledgling (96) 7944.80 -0.01 8434.38 7945.85 7933.18 7007.03 2.21 -0.27 -168.08 66.84 14116.06 Canada 94.30 94.44 96.37 Switzerland 164.94 166.62 165.78 Industrial Metals & 12.53 Consumer Goods 7.93 Basic Materials 0.22 Barclays PLC 266.40 -4.80 Persimmon PLC 1945 -25.00
FTSE Fledgling ex Inv Co (54) 10604.40 -0.15 11257.88 10620.80 10610.43 8785.11 2.14 -1.90 -24.60 79.07 18318.76 Denmark 106.01 105.78 105.68 UK 90.51 91.07 89.53 Support Services 12.51 Industrial Eng 7.87 Food Producers -0.43 Barratt Developments PLC 604.50 -1.50 Prudential PLC 1609 -8.00
FTSE All-Small (383) 3324.04 -0.52 3528.88 3341.50 3337.24 3102.80 2.50 1.89 21.15 39.32 5761.83 Japan 121.82 122.33 125.99 USA 102.51 102.92 101.09 Fixed Line Telecomms 12.02 Tobacco 7.68 Leisure Goods -1.80 Bg Group PLC 1101.5 -28.50 Randgold Resources LD 4591 -161.00
FTSE All-Small ex Inv Co Index (203) 3210.03 -0.44 3407.85 3224.30 3224.10 2992.92 2.36 2.90 14.59 37.60 5768.52 New Zealand 119.97 120.05 124.99 Euro 87.24 86.35 86.67 FTSE All{HY-}Share Index 7.48 Mining -2.06 Bhp Billiton PLC 1323.5 -43.50 Reckitt Benckiser Group PLC 5774 -41.00
FTSE AIM All-Share Index (830) 777.33 -0.10 825.23 778.13 775.40 800.18 1.30 1.44 53.37 3.94 830.21 Norway 92.33 92.06 94.53
BP PLC 440.15 -9.40 Reed Elsevier PLC 1075 -13.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 3520 -15.50 Rio Tinto PLC 2850 -31.50
Oil & Gas (19) 7435.09 -2.03 7893.27 7589.11 7580.93 9103.26 5.08 1.38 14.23 188.83 6060.82 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 836.00 7.00 Rolls-Royce Holdings PLC 972.50 -14.50
Oil & Gas Producers (12) 7030.87 -2.04 7464.14 7177.61 7169.05 8598.89 5.13 1.38 14.16 178.25 5923.89 Bt Group PLC 442.50 -4.95 Royal Bank Of Scotland Group PLC 351.80 2.30
Oil Equipment Services & Distribution (7)19539.37 -1.67 20743.45 19870.24 19904.84 24735.57 3.88 1.58 16.27 515.61 14139.49 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 1886 -19.00 Royal Dutch Shell PLC 1918 -34.00
Basic Materials (30) 4635.98 -2.61 4921.67 4760.22 4771.71 5363.27 4.18 2.73 8.77 111.30 4440.19 Burberry Group PLC 1680 -16.00 Royal Dutch Shell PLC 1901.5 -36.50
Chemicals (7) 12717.33 -3.34 13501.02 13156.65 13093.51 11602.60 2.08 2.52 19.12 97.32 10806.09 Jun 04 No of US $ Day Mth YTD Total
YTD Gr Div Jun 04 No of US $ Day Mth YTD Total YTD Gr Div Capita PLC 1234 -7.00 Royal Mail PLC 500.00 -26.00
Forestry & Paper (1) 16443.19 -1.89 17456.48 16760.53 16889.82 12893.62 2.22 3.38 13.31 241.11 16967.61 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Carnival PLC 3203 -25.00 Rsa Insurance Group PLC 431.60 2.20
Industrial Metals & Mining (2) 1654.37 -5.18 1756.32 1744.78 1759.70 1281.82 0.63 -21.67 -7.29 5.46 1435.88 FTSE Global All Cap 7606 492.16 0.2 -0.4 4.7 664.89
5.9 2.3 Oil & Gas 165 396.94 0.9 0.9 -0.3 593.38 1.1 3.6 Centrica PLC 269.30 -5.90 Sabmiller PLC 3403.5 -30.50
Mining (20) 13110.22 -2.53 13918.12 13449.92 13491.32 15811.06 4.56 2.75 7.97 349.03 6554.65 FTSE Global All Cap 6968 506.18 0.0 -0.3 4.5 671.48
5.6 2.2 Oil & Gas Producers 116 359.20 0.8 0.8 -0.9 546.02 0.5 3.7 Coca-Cola Hbc AG 1415 -7.00 Sage Group PLC 557.00 -5.50
FTSE Global Large Cap 1360 433.74 0.1 -0.7 4.0 598.90
5.3 2.5 Oil Equipment & Services 39 421.47 1.2 1.2 1.7 576.17 3.0 3.3 Compass Group PLC 1133 -9.00 Sainsbury (J) PLC 250.30 0.50
Industrials (114) 4792.85 -0.97 5088.20 4839.99 4814.90 4527.70 2.30 1.37 31.79 56.83 4700.65
Construction & Materials (13) 5051.28 -1.47 5362.55 5126.66 4999.89 4601.49 2.55 -0.40 -99.21 78.91 5120.15 FTSE Global Mid Cap 1664 657.33 0.4 -0.1 6.5 849.98
7.5 1.9 Basic Materials 273 452.99 0.9 0.9 4.0 654.94 5.6 2.8 Crh PLC 1816 -37.00 Schroders PLC 3341 -26.00
Aerospace & Defense (9) 5302.63 -1.13 5629.39 5363.49 5356.00 5166.22 2.10 1.36 34.97 69.13 5427.87 FTSE Global Small Cap 4582 697.47 0.3 1.1 6.9 875.02
7.8 1.8 Chemicals 124 672.88 0.5 0.5 7.9 978.95 9.4 2.3 Diageo PLC 1782 -13.50 Severn Trent PLC 2153 -21.00
General Industrials (6) 3590.09 -0.22 3811.32 3598.08 3598.08 3562.16 3.15 1.82 17.40 48.72 3832.74 FTSE All-World 3024 287.10 0.2 -0.6 4.5 409.10
5.7 2.4 Forestry & Paper 17 227.71 0.0 0.0 9.3 361.30 11.3 2.7 Direct Line Insurance Group PLC 345.40 -1.00 Shire PLC 5465 -50.00
Electronic & Electrical Equipment (12) 5813.20 -0.77 6171.43 5858.36 5879.50 5380.53 2.00 2.05 24.30 53.12 5080.62 FTSE World 2529 505.56 0.2 -0.5 4.0 967.64
5.3 2.4 Industrial Metals & Mining 72 405.27 1.8 1.8 -1.7 586.84 -0.5 2.5 Dixons Carphone PLC 477.10 2.30 Sky PLC 1040 -16.00
Industrial Engineering (14) 9887.33 -1.56 10496.63 10044.43 9979.08 11015.33 2.44 2.04 20.06 156.43 11455.91 FTSE Global All Cap ex UNITED KINGDOM In 7274 504.01 0.2 -0.5 4.7 671.75
5.9 2.2 Mining 60 557.91 1.6 1.6 -2.1 799.19 0.0 4.3 Easyjet PLC 1592 10.00 Smith & Nephew PLC 1137 -16.00
Industrial Transportation (8) 4480.06 -2.85 4756.14 4611.69 4596.05 4483.15 3.48 1.26 22.80 43.82 3662.10 FTSE Global All Cap ex USA 5642 476.36 0.5 -1.2 6.5 682.00
8.1 2.7 Industrials 530 329.12 0.4 0.4 4.6 452.41 5.7 2.1 Experian PLC 1224 -9.00 Smiths Group PLC 1211 -4.00
Support Services (52) 7131.07 -0.71 7570.51 7182.25 7150.31 6422.88 2.15 1.51 30.85 72.07 7059.27 FTSE Global All Cap ex JAPAN 6350 502.67 0.2 -0.7 3.9 684.89
5.1 2.4 Construction & Materials 110 464.98 0.3 0.3 7.8 669.98 9.1 2.0 Fresnillo PLC 724.00 -22.50 Sports Direct International PLC 677.00 -7.00
FTSE Developed 2088 457.44 0.2 -0.3 4.4 622.96
5.6 2.3 Aerospace & Defense 29 521.52 0.4 0.4 4.9 711.59 6.1 2.0 G4S PLC 293.80 -3.20 Sse PLC 1610 -25.00
Consumer Goods (40) 17166.29 -0.60 18224.14 17269.87 17124.23 15903.89 3.02 1.74 19.00 268.13 11917.38
FTSE Developed All Cap 5654 481.18 0.2 -0.1 4.7 648.38
5.9 2.2 General Industrials 57 224.93 0.3 0.3 3.4 331.24 4.7 2.5 Gkn PLC 368.50 -3.50 St. James's Place PLC 915.00 1.50
Automobiles & Parts (1) 8659.92 -0.94 9193.58 8742.17 8657.57 9118.18 2.28 1.72 25.43 131.60 7887.69
FTSE Developed Large Cap 884 422.66 0.2 -0.4 3.9 583.10
5.2 2.4 Electronic & Electrical Equipment 68 356.68 0.5 0.5 9.6 452.37 10.5 1.5 Glaxosmithkline PLC 1411.5 -26.00 Standard Chartered PLC 1044.5 -7.50
Beverages (6) 14057.63 -0.82 14923.91 14173.73 14142.13 14375.76 2.51 1.85 21.51 96.90 9382.57
FTSE Developed Europe Large Cap 205 372.15 1.1 -0.9 5.2 580.18
7.7 3.3 Industrial Engineering 103 664.90 0.6 0.6 7.5 899.66 8.9 2.0 Glencore PLC 281.40 -7.60 Standard Life PLC 478.40 -4.40
Food Producers (10) 8023.78 -0.92 8518.24 8098.00 8027.00 7981.76 2.00 1.24 40.25 32.06 6610.44
FTSE Developed Europe Mid Cap 310 548.50 1.1 1.0 11.49.7 779.53
2.3 Industrial Transportation 93 569.90 0.2 0.2 -4.5 780.78 -3.7 2.2 Hammerson PLC 650.50 0.50 Taylor Wimpey PLC 188.50 -0.80
Household Goods & Home Construction (13)12724.88 -0.72 13509.03 12817.26 12709.23 9601.08 2.23 2.34 19.15 132.98 8555.71
FTSE Dev Europe Small Cap 721 766.29 1.5 2.3 11.3 1059.78
12.9 2.2 Support Services 70 288.64 0.2 0.2 5.9 381.90 6.9 1.9 Hargreaves Lansdown PLC 1261 -24.00 Tesco PLC 208.65 -1.75
Leisure Goods (2) 4939.86 -1.31 5244.27 5005.50 4986.40 5239.44 4.28 1.05 22.17 109.73 4086.98
FTSE North America Large Cap 315 454.23 -0.1 0.0 2.1 590.31
3.1 2.1 Consumer Goods 406 425.94 -0.1 -0.1 5.2 598.07 6.4 2.3 Hikma Pharmaceuticals PLC 2056 -38.00 Travis Perkins PLC 2194 -25.00
Personal Goods (6) 23295.17 -0.64 24730.70 23445.88 23104.09 20718.14 2.81 2.75 12.95 283.55 14790.62
FTSE North America Mid Cap 398 701.66 0.2 -0.4 3.4 857.57
4.1 1.6 Automobiles & Parts 98 423.30 -0.3 -0.3 8.6 571.73 10.0 2.1 HSBC Holdings PLC 618.80 -6.50 Tui AG 1184 -8.00
Tobacco (2) 42642.55 -0.23 45270.34 42739.81 42278.34 40110.89 4.33 1.22 19.00 1291.78 25573.98
FTSE North America Small Cap 1485 722.54 0.2 1.1 4.9 859.09
5.5 1.5 Beverages 48 550.35 0.2 0.2 2.3 780.42 3.2 2.5 Imperial Tobacco Group PLC 3269 7.00 Unilever PLC 2872 -16.00
Health Care (20) 9570.33 -1.33 10160.09 9699.13 9683.95 9168.47 3.59 3.46 8.05 203.85 6870.82
FTSE North America 713 305.90 0.0 -0.1 2.4 407.60
3.2 2.0 Food Producers 102 574.23 0.1 0.1 4.0 834.06 5.6 2.2 Intercontinental Hotels Group PLC 2710 -34.00 United Utilities Group PLC 971.00 -13.00
Health Care Equipment & Services (8) 6844.79 -1.25 7266.59 6931.44 6936.26 6072.89 1.49 2.24 29.91 60.90 5766.95
FTSE Developed ex North America 1375 250.62 0.6 -0.6 7.4 385.69
9.3 2.7 Household Goods & Home Construction 43 397.55 -0.2 -0.2 0.3 555.35 1.5 2.4 International Consolidated Airlines Group S.A. 526.00 -17.50 Vodafone Group PLC 248.10 -2.30
Pharmaceuticals & Biotechnology (12)13018.23 -1.34 13820.47 13194.39 13170.99 12563.79 3.78 3.51 7.54 292.29 8295.08
FTSE Japan Large Cap 174 350.58 0.0 2.0 14.9 433.86
16.0 1.7 Leisure Goods 26 142.46 0.1 0.1 13.1 181.46 13.7 1.2 Intertek Group PLC 2560 -10.00 Weir Group PLC 1919 -56.00
Consumer Services (96) 5032.91 -1.03 5343.05 5085.04 5061.38 4497.12 2.18 1.94 23.59 64.05 4495.28 FTSE Japan Mid Cap 304 494.90 0.4 2.9 16.4 593.15
17.4 1.4 Personal Goods 76 613.25 0.3 0.3 5.2 822.48 6.1 1.9
Food & Drug Retailers (7) 3177.61 -0.59 3373.43 3196.54 3137.38 3902.73 2.19 0.46 98.52 36.49 3613.16 Intu Properties PLC 322.50 -0.80 Whitbread PLC 5045 -25.00
FTSE Global wi JAPAN Small Cap 778 518.43 0.4 2.8 10.6 641.04
11.6 1.6 Tobacco 13 1126.49 -1.1 -1.1 4.9 2144.51 6.7 4.1 Itv PLC 268.40 -1.70 Wolseley PLC 4058 -44.00
General Retailers (31) 3201.74 0.01 3399.04 3201.57 3198.31 2755.05 2.05 2.41 20.26 32.24 3461.64
FTSE Japan 478 144.06 0.0 2.2 1.6 Health Care
15.2 200.44
16.3 158 478.06 -0.3 -0.3 10.1 660.60 11.2 1.8 Johnson Matthey PLC 3331 -185.00 Wpp PLC 1505 -54.00
Media (23) 7463.90 -2.02 7923.85 7617.50 7580.37 6184.97 2.69 1.75 21.31 128.68 4358.55
FTSE Asia Pacific Large Cap ex Japan 492 646.91 -0.8 -3.8 5.1 946.59
6.1 2.8 Health Care Equipment & Services 56 649.69 -0.5 -0.5 10.0 740.21 10.4 1.0 Kingfisher PLC 377.90 9.80
Travel & Leisure (35) 8524.78 -0.96 9050.11 8607.79 8588.64 7326.65 1.83 2.44 22.36 93.29 7694.58
FTSE Asia Pacific Mid Cap ex Japan 442 889.12 -0.9 -2.5 10.3 1258.51
11.2 2.4 Pharmaceuticals & Biotechnology 102 367.64 -0.2 -0.2 10.1 527.59 11.5 2.0
Telecommunications (8) 4167.38 -0.93 4424.19 4206.48 4235.81 3537.82 3.74 1.87 14.34 4.97 4200.26 FTSE Asia Pacific Small Cap ex Japan 1374 597.75 -0.9 -0.3 11.9 833.79
12.6 2.4 Consumer Services 384 396.37 0.1 0.1 5.9 510.44 6.8 1.6
Fixed Line Telecommunications (6) 5157.65 -0.99 5475.48 5209.32 5171.97 4651.61 2.68 1.88 19.86 5.87 4350.50
Mobile Telecommunications (2) 5626.79 -0.89 5973.53 5677.42 5765.53 4597.18 4.37 1.86 12.27 6.89 5026.12
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
934
1952
513.16
727.76
-0.8
-0.2
-3.6
-3.2
5.7 798.39
6.7 2.7 Food & Drug Retailers
5.5 1016.38
6.4 2.7 General Retailers
54 317.82
121 512.44
0.1
0.2
0.1
0.2
5.7 425.58
7.2 644.61
6.5
8.0
1.7
1.5
UK STOCK MARKET TRADING DATA
Utilities (8) 8551.77 -3.07 9078.76 8822.48 8851.79 8659.81 4.79 1.02 20.37 196.48 8880.88 FTSE Emerging Large Cap 476 689.77 -0.1 -3.6 5.5 968.66
6.3 2.8 Media 89 318.09 0.1 0.1 5.8 410.00 6.6 1.5 Jun 04 Jun 03 Jun 02 Jun 01 May 29 Yr Ago
Electricity (3) 9515.19 -1.63 10101.55 9672.86 9696.14 9824.43 5.24 1.38 13.84 157.74 12176.40 FTSE Emerging Mid Cap 460 904.50 -0.4 -2.5 5.0 1261.71
6.0 2.5 Travel & Leisure 120 375.55 0.0 0.0 4.3 488.50 5.2 1.6 SEAQ Bargains 7099.00 7993.00 20.00 8117.00 8117.00 8117.00
Gas Water & Multiutilities (5) 7855.13 -3.47 8339.20 8137.83 8166.96 7909.27 4.66 0.91 23.56 194.91 8222.75 FTSE Emerging Small Cap 1016 756.47 -0.7 -0.9 6.9 1018.13
7.6 2.5 Telecommunication 93 173.90 0.5 0.5 4.1 298.90 5.9 3.9 Order Book Turnover (m) 56.82 49.60 - 93.52 93.52 93.52
Financials (281) 5022.48 -0.84 5331.98 5065.25 5044.92 4628.20 3.11 1.90 16.92 96.73 4324.06 FTSE Emerging Europe 98 342.38 1.5 -4.7 11.09.8 487.63
4.3 Fixed Line Telecommuniations 43 141.81 0.6 0.6 3.5 266.18 5.7 4.3 Order Book Bargains 886114.00 873956.00 - 861667.00 861667.00 861667.00
Banks (8) 4565.77 -1.21 4847.12 4621.53 4594.49 4502.33 3.61 1.33 20.88 107.97 3099.13 FTSE Latin America All Cap 242 838.30 2.1 -4.4 -7.0 1220.85
-5.6 3.4 Mobile Telecommunications 50 189.79 0.4 0.4 4.9 296.37 6.2 3.4 Order Book Shares Traded (m) 1334.00 1581.00 1403.00 1999.00 1999.00 1999.00
Nonlife Insurance (10) 2485.59 -0.10 2638.76 2488.18 2468.42 2180.38 2.71 1.48 24.97 46.33 4131.97 FTSE Middle East and Africa All Cap 213 770.05 0.1 -6.0 0.0 1132.12
1.5 2.8 Utilities 163 258.45 -0.2 -0.2 -3.3 463.20 -1.8 3.7 Total Equity Turnover (£m) 2385.28 12591.53 4272.39 2688.00 2688.00 2688.00
Life Insurance/Assurance (11) 8319.98 -0.40 8832.69 8353.29 8291.72 7393.83 3.23 1.77 17.53 200.42 7547.38 FTSE Global wi UNITED KINGDOM All Cap In 332 376.88 0.5 0.9 3.3 Electricity
4.9 584.63
6.7 113 276.32 -0.4 -0.4 -2.6 490.23 -1.2 3.6 Total Mkt Bargains 1042345.00 3.00 87.00 1003777.00 1003777.00 1003777.00
Index- Real Estate Investment & Services (24) 3124.74 -0.58 3317.29 3142.81 3163.69 2733.94 1.77 5.11 11.06 30.03 7952.68 FTSE Global wi USA All Cap 1964 524.82 -0.1 0.3 3.1 664.73
4.0 1.9 Gas Water & Multiutilities 50 284.29 0.1 0.1 -4.5 522.01 -2.8 3.9 Total Shares Traded (m) 4267.00 0.00 23.00 6096.00 6096.00 6096.00
Real Estate Investment Trusts (22) 3008.74 0.14 3194.15 3004.55 3043.30 2565.65 2.68 6.95 5.38 40.58 3500.15 FTSE Europe All Cap 1389 424.68 1.1 -0.4 6.6 642.09
8.8 3.0 Financials 670 222.69 0.3 0.3 3.2 341.07 4.7 2.7 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (29) 8460.21 -1.16 8981.56 8559.86 8519.82 6911.43 2.65 2.02 18.71 97.23 9043.61 FTSE Eurobloc All Cap 638 392.34 1.7 -1.4 6.5 601.59
8.7 2.8 Banks 240 206.51 0.6 0.6 2.7 336.47 4.4 3.1 (c) Market closed.
Equity Investment Instruments (177) 7999.09 -0.92 8492.02 8072.96 8038.92 7287.14 2.43 1.06 38.78 86.88 4144.00 FTSE RAFI All World 3000 3028 6134.05 0.5 -1.1 4.1 7610.83
5.6 2.9 Nonlife Insurance 70 215.88 0.7 0.7 0.8 298.43 2.4 2.3
Non Financials (356) 4308.19 -1.36 4573.67 4367.63 4356.14 4273.14 3.38 1.92 15.43 72.33 5921.05 FTSE RAFI US 1000 1004 9431.62 0.0 -0.3 1.5 11753.17
2.5 2.3 Life Insurance 49 225.24 0.0 0.0 6.7 337.32 8.2 2.4
Technology (21) 1447.66 -0.71 1536.87 1457.97 1455.40 1152.35 1.24 2.25 35.69 12.39 1800.31 FTSE EDHEC-Risk Efficient All-World 3024 338.04 0.1 -0.2 5.8 449.12
6.8 2.1 Financial Services 138 244.24 0.0 0.0 5.5 321.83 6.4 1.8 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1668.48 -0.73 1771.30 1680.80 1683.52 1321.67 1.88 1.87 28.47 22.53 2171.10 FTSE EDHEC-Risk Efficient Developed Europe 515 298.73 1.0 0.3 7.2 432.06
9.0 2.5 Technology 182 181.04 -0.2 -0.2 5.2 213.83 5.9 1.6 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (8) 1735.65 -0.69 1842.60 1747.68 1740.42 1385.82 0.79 2.89 43.51 8.51 1984.52 Software & Computer Services 80 286.59 0.1 0.1 5.6 327.08 6.2 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 102 146.83 -0.5 -0.5 4.9 177.65 5.8 2.0 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 6933.61 6926.96 6924.48 6928.19 6943.62 6975.31 6960.33 6966.69 6977.23 6985.51 6902.22 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 18278.00 18299.07 18290.21 18286.96 18321.59 18377.34 18306.45 18303.43 18303.04 18392.84 18236.63 (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 4825.42 4827.09 4826.95 4827.26 4830.00 4834.47 4834.08 4831.58 4827.54 4834.97 4822.61
FTSE All-Share 3780.05 3777.91 3776.52 3778.04 3786.03 3801.89 3792.94 3795.54 3800.02 3806.43 3766.23 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:11:52:30 Day's Low07:20:45 FTSE 100 2010/11 High: 7103.98(27/04/2015) Low: 6366.51(06/01/2015) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:11:53:00 Day's Low07:21:00 FTSE 100 2010/11 High: 3834.45(27/04/2015) Low: 3434.73(06/01/2015)
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Distil Pre 0.666 2.405 0.289L 0.392L 0.08L 0.12L - - - - - date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Guscio Int - - 0.084L 0.088L 0.934L 7.104L - - - - - 06/04 15.00 Fishing Republic PLC 17.00 - 17.90 16.50 0.0
There are currently no rights offers by any companies listed on the LSE. Herencia Resources Pre - - 1.92L 3.443L 0.08L 0.15L - - - - - 06/03 139.00 Gear4music (Holdings) PLC 142.50 -3.00 145.00 140.00 2872.3
Johnson Matthey Pre 10059.7 11155.2 495.8 406.6 211.2 167.7 49.5 45.5 Aug 4 68 64.389 05/29 100.00 DRIP Drum Income Plus REIT PLC 142.50 27.50 135.00 135.00 4540.6
Metals Exploration Pre - - 3.021L 5.235L 0.347L 0.489L - - - - - 05/19 132.00 AIM STR Stride Gaming PLC 182.50 2.10 200.00 135.00 9152.7
Monks Investment Trust (The) Pre 115.781 40.77 4.74 4.87 3.45 3.45 Aug 7 3.95 4.006 04/27 10.00 OPRA Opera Investments PLC 9.75 -0.63 13.00 9.50 168.2
Oxford Advanced Surfaces Group Pre 0.086 0.003 1.037L 1.931L 0.5L 0.91L - - - - -
Pets at Home Group Pre 729.086 665.395 86.965 22.505 14.4 13.8 3.6 - Sep 14 5.4 -
Rose Petroleum Pre 1.88 5.71 3.56L 2.981L 0.33L 0.57L - - - - -
Value & Income Trust Pre 4.588 16.24 9.48 8.28 4.7 4.4 Jul 17 9 8.956
Vianet Group Pre 18.53 18.335 1.709 1.563 4.78 11.6 4 4 Jul 24 5.7 5.889
Vp Pre 205.602 183.064 25.073 18.933 51.03 39.78 11.5 10.4 Aug 7 16.5 14.4
Wincanton Pre 1107.4 1098 24.9 34.9 16.6 23.6 - - - - -

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.
Friday 5 June 2015 ★★★ FINANCIAL TIMES 23

MARKET DATA
FT500: THE WORLD'S LARGEST COMPANIES
52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) AXA 22.76 -0.23 24.64 16.43 3.76 10.42 62997.5 Denso 6401 91.00 6548 4466.5 1.68 19.39 45451.38 SEB 104.70 -0.70 111.50 82.30 4.49 11.65 27808.37 Biogen 384.99 -2.49 480.18 290.85 - 26.86 90560.68 Lyondell♦ 100.10 -2.68 115.40 70.06 2.89 11.09 47377.43
ANZ♦ 31.50 -0.42 37.25 30.47 8.31 11.70 66883.95 BNP Parib 56.34 -0.43 59.69 43.14 2.62 438.37 79196.33 EastJpRwy 11040 -120.00 11550 7623 1.11 21.09 34892.09 SvnskaHn 126.40 -1.30 426.00 125.20 3.26 16.58 29240.47 BkNYMeln 43.01 -0.40 44.10 34.44 1.64 18.11 48236.22 Marathon Ptl♦ 100.66 -1.54 108.32 74.64 1.97 8.53 27342.99
BHPBilltn 28.09 -0.44 39.74 26.50 7.83 11.69 69254.47 ChristianDior 186.35 -1.95 189.15 126.10 1.76 13.56 38206.21 Fanuc 27555 140.00 28575 16940 0.88 28.75 53007.12 Swedbank 196.20 -2.50 223.90 166.20 5.72 12.97 26293.91 BlackRock 359.21 -5.74 382.84 293.39 2.30 17.62 59131.8 Marsh&M 58.08 -0.52 59.28 48.66 1.94 20.87 31270.74
CmwBkAu 80.54 -1.03 96.69 73.57 7.47 14.20 100628.18 Cred Agr♦ 13.66 -0.20 14.49 9.76 2.53 14.90 39690.28 FastRetail 50740 -290.00 51640 32030 0.66 44.51 43228.6 TeliaSonera 50.05 -0.35 55.85 45.36 - 15.35 26289.42 Boeing♦ 141.89 -1.92 158.83 116.32 2.26 17.13 98119.39 MasterCard 92.86 -0.64 94.50 69.64 0.60 27.62 103642.29
CSL 90.08 -1.42 96.60 63.77 1.44 27.27 32231.05 Danone 62.38 -0.67 67.74 49.84 2.46 31.81 46034.48 Fuji Hvy Ind 4728.5 13.50 4827.5 2750 1.28 16.74 29731.99 Volvo 110.80 -0.20 120.50 71.00 2.68 43.23 27275.63 BrisMySq 66.11 0.41 69.86 46.30 2.29 47.42 110197.52 McDonald's♦ 96.69 0.17 102.62 87.62 3.55 20.95 92678.8
NatAusBk♦ 32.32 -0.68 39.71 31.33 9.01 13.04 62394.53 EDF♦ 21.17 -0.60 27.02 20.90 6.24 10.06 44413.82 Hitachi 844.40 2.90 939.90 701.00 1.30 14.72 32780.84 Switzerland (SFr) Broadcom♦ 54.64 0.02 57.70 34.50 0.95 46.03 30036.6 McGraw Hill♦ 102.84 -0.75 109.13 73.96 1.24-116.98 28186.79
Telstra 6.00 -0.09 6.74 5.16 7.38 15.35 56310.03 GDF Suez 17.84 -0.28 21.19 16.17 6.93 16.94 49001.32 HondaMtr 4260 -16.00 4400 3239 2.11 12.60 61978.91 ABB 21.77 0.75 22.31 16.75 3.35 21.13 53961.53 CapOne 83.32 -0.98 85.68 72.77 1.49 10.38 45528.08 McKesson♦ 235.38 -1.40 243.61 178.28 0.42 30.16 54503.07
Wesfarmers 41.45 -0.67 46.95 40.26 7.37 28.77 35756.7 Hermes Intl♦■ 350.45 -11.85 365.50 229.00 0.81 40.48 41739.68 JapanTob 4462.5 -1.00 4794.5 3101 2.41 18.39 71683.86 CredSuisse 26.29 0.32 27.81 18.57 2.65 21.80 46124.55 CardinalHlth 87.79 -0.23 91.91 67.27 1.62 24.81 29043.87 Medtronic 76.07 -0.76 79.50 58.32 1.61 23.85 74876.96
Westpc♦ 31.40 -0.48 40.07 31.29 8.53 13.07 75209.21 LOreal 170.00 -0.55 181.30 117.05 1.55 34.01 107349.66 Kao 5759 55.00 6270 3932 1.31 40.83 23312.61 Nestle 71.20 -0.40 77.00 64.15 2.80 17.00 245870.07 Carnival♦ 47.48 -0.34 49.21 33.11 2.09 28.50 28140.83 Merck 59.49 -0.91 63.62 52.49 3.10 14.93 168058.32
Woolworths 27.10 -0.26 37.69 27.02 7.59 13.45 26349.74 LVMH 163.45 -2.10 175.40 121.40 2.04 13.80 93659.31 KDDI 2791.5 -6.00 3048 1899.67 1.83 16.90 60331.9 Novartis 96.60 -0.40 102.70 78.60 2.63 24.36 276915.49 Caterpillar 85.67 -0.56 111.46 78.19 3.26 13.26 51864.52 Metlife♦ 53.92 -0.07 57.57 46.10 2.69 8.47 60164.94
Belgium (€) Nmrcble-SFR 50.50 -0.36 60.01 26.38 - -61.89 27742.85 Keyence 67700 110.00 69480 41045 0.20 36.57 33061.24 Richemont 80.45 -0.50 94.20 68.80 1.61 22.74 44969.64 CBS 62.15 -0.07 65.24 48.83 0.95 25.10 28235.74 MicronTech 27.06 -0.02 36.59 25.61 - 8.36 29266.48
AnBshInBv 107.90 -1.30 118.80 78.75 2.76 24.81 195775.27 Orange 14.51 -0.10 16.45 10.20 5.10 38.13 43347.68 MitsbCp 2824.5 -4.50 2837 1942.5 2.46 13.20 36842.64 Roche 275.30 -1.40 295.80 238.80 2.62 27.49 207116.25 Celgene 111.46 -1.22 129.06 77.11 - 36.79 88403.87 Microsoft♦ 46.54 -0.31 50.05 39.86 2.62 18.69 376488.83
KBC Grp 60.22 -0.33 62.48 36.53 - 12.01 28384.03 PernodRic 107.05 -0.80 117.75 82.23 1.62 27.60 32055.89 MitsubEst 2698.5 -14.50 2975 2151.5 0.45 35.75 30135.23 Swiss Re 84.75 0.35 96.95 69.25 4.97 8.98 33642.89 Cernr Crp 66.87 -0.88 75.72 50.30 - 43.79 23008.52 MondelezInt 40.57 -0.46 41.81 31.83 1.51 28.33 65992.08
Renault 93.43 -1.94 100.25 49.50 1.95 12.82 31171.33 MitsubishiEle 1686.5 -7.50 1718 1178 0.78 28.59 29085.22 Swisscom 536.50 -9.00 587.50 500.00 4.08 16.67 29760.39 CharlesSch 32.28 -0.01 32.45 23.35 0.77 33.31 42400.4 Monsanto 113.72 -2.03 128.79 105.76 1.61 24.54 54142.42
Brazil (R$)
Safran 63.12 -0.53 70.72 43.24 2.01-197.40 29697.43 MitsuiFud 3554 2.00 3809.5 2854.5 0.63 38.02 28300.26 Syngent 426.70 5.10 435.20 273.20 2.44 26.35 42469.25 ChevrnTx♦ 101.48 -0.69 135.10 98.88 4.36 10.71 190830.88 MorganStly 38.98 -0.03 39.24 30.68 1.06 18.38 76791.64
Ambev♦ 18.40 -0.18 20.29 14.99 8.59 23.32 92266.33
Sanofi 91.15 0.03 99.23 69.58 3.25 26.15 134483.36 MitUFJFin 924.30 10.60 936.80 546.20 1.99 11.28 105186.74 UBS 20.60 -0.02 20.78 13.58 1.21 17.97 82531.13 Cigna 138.12 -2.03 145.33 85.75 0.03 16.80 35547.54 MylanNV 73.86 1.47 76.69 44.80 - 33.61 36193.86
Bradesco♦ 26.25 -0.85 34.42 25.88 3.70 7.82 21140.72
Schneider 67.29 -0.74 75.29 52.59 3.60 20.73 44389.55 Mizuho Fin 269.10 2.30 280.40 178.10 2.66 14.61 53228.28 Zurich Fin 297.60 -2.50 334.60 262.00 - 12.02 47928.34 Cisco 28.82 -0.27 30.31 22.49 2.71 16.71 146575.31 Netflix 624.48 2.82 631.44 315.54 - 157.11 37858.01
Cielo 40.79 -0.34 49.06 36.21 2.42 14.31 24552.18
SocGen 43.02 -0.29 46.95 31.85 2.29 11.94 39124.1 Murata Mfg 20275 140.00 20865 8800 0.71 37.86 36683.02 Citigroup 55.34 -0.29 56.95 46.55 0.07 19.85 167909.29 News Corp A 33.70 0.07 39.27 31.01 0.84 7.67 42426.26
ItauHldFin 32.23 -0.36 38.74 28.46 1.58 7.71 28482.93 Taiwan (NT$)
Total 45.50 -0.88 54.71 38.25 6.06 31.85 122980.78 NipponTT 8707 10.00 8820 6003 2.12 17.14 79492.57 CME Grp 94.15 -0.37 100.61 69.16 2.10 25.71 31780.79 NextEraE♦ 100.11 -0.11 112.64 90.33 3.04 15.95 44461.23
Petrobras 13.83 -0.02 23.50 7.88 - -7.16 32838.04 HonHaiPrc 94.50 -2.50 113.00 83.00 1.74 9.78 46383.21
UnibailR 231.05 5.85 262.00 180.70 4.07 13.60 25669.01 Nissan Mt 1330.5 11.00 1350 917.40 2.42 12.01 48309.81 Coca-Cola 40.66 -0.21 44.87 39.06 3.17 24.79 177224.78 Nike♦ 102.39 -0.12 105.50 73.14 1.01 29.45 69849.4
Vale 20.89 -0.46 33.25 17.17 12.59 -6.68 21441.43 TaiwanSem 141.00 -2.00 155.00 118.00 2.17 12.55 118465.02
Vinci 53.77 -0.52 57.66 39.65 3.48 11.49 36220.93 NTTDCMo 2319 -15.00 2364.5 1612.5 2.65 22.30 76100.61 Cognizant 64.84 -0.86 65.96 41.51 - 26.06 39585.96 NorfolkS♦ 92.46 -0.04 117.64 91.85 2.54 14.39 28186.38
Canada (C$) Vivendi 23.36 -0.27 24.42 17.26 4.22 -91.66 35912.08 Orintllnd 7946 -69.00 9890 4246.25 0.42 37.92 23210.97 Thailand (THB) ColgtPlm 66.47 -0.10 71.56 62.53 2.24 25.35 60126.76 Northrop♦ 158.85 -1.41 172.30 118.23 1.82 16.11 30782.7
BCE 54.98 -0.34 60.20 46.43 4.64 19.17 37381.56 Panasonic 1784 -6.50 1853.5 1126 0.80 73.89 35149.17 PTT Explor 337.00 -3.00 398.00 292.00 2.79 18.21 28529.12 Comcast 59.39 0.07 60.85 49.33 1.61 17.40 126568.28 NXP 107.72 -0.51 114.00 53.81 - 78.58 27118.67
Germany (€)
BkMontrl 75.55 -0.90 85.71 72.87 4.30 11.50 39041.88 Seven & I 5161 44.00 5494 3794.5 1.46 25.48 36744.93 United Arab Emirates (Dhs) ConocPhil 63.21 -0.59 87.09 60.57 4.72 19.49 77934.56 Occid Pet 78.20 -0.17 101.38 71.70 3.81 -39.23 60066.93
Allianz 143.65 -0.50 170.15 115.05 3.63 10.34 74063.93
BkNvaS 65.92 -0.81 74.93 60.75 4.12 11.27 63977.44 ShnEtsuCh 7530 20.00 8529 5944 1.36 25.87 26133.6 Emirtestele 11.45 -0.05 11.90 9.41 6.03 10.47 27110.25 Corning♦ 20.54 -0.26 25.16 17.03 2.12 11.03 25850.68 Oracle 43.69 -0.28 46.71 35.82 1.09 18.38 190797.29
BASF 83.25 -1.13 97.22 64.27 3.20 15.95 86265.72
Brookfield♦ 43.00 -0.98 48.64 30.57 1.30 9.62 33822.58 Softbank 7348 -87.00 8760 6704 0.56 14.09 70860.23 Costco 141.62 -0.51 156.85 114.51 1.00 27.84 62309.16 Pepsico♦ 94.76 -0.54 100.76 86.71 2.86 21.32 139870.58
Bayer 128.85 -0.65 146.45 94.22 1.61 32.67 120211.91 United Kingdom (p)
CanadPcR 209.12 1.12 247.56 188.21 0.68 22.86 27519.49 Sony 3773 18.50 3970 1622 0.68 -25.35 35449.85 CrownCstl 83.55 1.58 89.44 72.43 2.90 73.17 27885.74 Pfizer 34.22 -0.19 35.53 27.51 3.21 22.92 210715.47
BMW 100.30 -0.95 123.75 74.74 2.55 12.43 68120.67 AscBrFd♦ 2950 -33.00 3293 2407 1.15 41.34 35879.6
CanImp 94.63 -0.93 107.37 88.04 4.45 10.48 30155 SumitomoF 5677 103.00 5747 3823 2.25 10.20 64476.07 CSX♦ 34.10 - 37.99 28.97 1.94 16.69 33690.17 PG&E 51.81 -0.16 60.21 42.92 3.64 19.19 24867.43
Continental 208.80 -2.75 234.25 136.85 1.18 17.35 47114.92 AstraZen 4337 -53.00 4931.68 4075 4.36 63.67 84146.31
CanNatRs 37.41 -0.57 49.57 31.00 2.46 13.18 32833.3 Takeda Ph 5993 -17.00 6657 4337.5 3.07 86.90 38023.63 Cummins 134.94 -0.63 161.03 124.30 2.27 13.97 24466.21 Phillips66 77.43 -0.87 87.98 57.33 2.67 10.07 41938.57
Daimler 82.94 -0.86 96.07 55.10 5.58 11.40 100107.54 Barclays♦ 266.40 -4.80 273.40 201.75 2.44 -0.86 67337.42
CanNatRy 73.44 -0.22 88.89 65.69 1.47 18.18 47171.5 TokioMarine 5203 81.00 5288 3002 1.57 15.73 31656.56 CVS 100.82 -1.09 105.46 74.64 1.21 23.76 113758.31 PhilMorris 82.23 -0.20 91.63 75.27 4.96 16.76 127378.46
Deut Bank 28.11 0.07 33.42 22.66 2.51 34.21 43733.96 BG 1101.5 -28.50 1420 780.55 1.84 -29.04 57770.09
Enbridge 59.13 -1.22 66.14 47.43 2.61 128.88 40633.22 Toyota 8527 12.00 8783 5710 2.10 13.04 234089.11 Danaher 86.26 -0.98 90.25 70.12 0.52 23.09 61031.17 PNCFin 95.29 -0.73 96.71 76.69 2.09 12.66 49352.63
Deut Tlkm♦ 15.75 0.21 17.63 10.07 3.13 37.96 80593.02 BP♦ 440.15 -9.40 526.80 364.40 6.17 42.18 123331.82
GtWesLif♦ 36.55 -0.14 37.64 28.95 3.48 13.49 29244.11 Deere 91.92 -0.82 94.88 78.88 2.61 12.53 30689.46 PPG Inds♦ 229.13 -0.86 237.90 171.56 1.21 26.16 31144.71
DeutsPost 26.80 -0.16 31.19 21.55 2.94 16.65 36614.03 Mexico (Mex$) BrAmTob 3520 -15.50 3894 3303 4.12 21.13 103733.22
ImpOil 48.89 -0.43 57.96 44.08 1.08 12.52 33239.04 Delta 43.00 -0.25 51.06 30.12 0.79 29.22 35096.9 Praxair♦ 121.32 -1.50 134.84 117.19 2.27 20.75 34977.79
E.ON♦ 13.14 -0.38 15.46 12.23 4.50 -9.63 29663.84 AmerMvl 16.08 -0.28 17.64 12.57 1.57 - 69931.95 BSkyB 850.50 -12.00 954.00 782.50 3.76 9.03 23005.52
Manulife♦ 23.45 -0.09 23.76 18.91 2.58 13.33 37060.12 DevonEngy 63.17 -0.74 80.63 51.76 1.57 -10.69 25965.5 Prec Cast♦ 214.17 -4.06 275.09 186.17 0.06 19.22 29604.49
Fresenius Med 78.02 -0.40 82.32 46.70 1.23 24.61 27384 FEMSA UBD 137.50 -0.88 149.93 116.20 - 28.13 31687.63 BT 442.50 -4.95 472.85 351.90 2.58 16.98 55359.18
Potash 38.29 -0.88 47.10 35.25 4.72 15.90 25621.73 DirectTV 92.26 0.23 92.65 82.04 - 15.48 46504.81 Priceline 1190.33 -3.38 1329.9 990.69 - 25.09 61702.95
Fresenius SE 57.05 -0.06 58.82 35.10 0.72 27.78 28078.24 WalMrtMex 38.90 1.53 40.00 28.26 1.41 25.33 43825.57 Compass 1133 -9.00 1223.36 924.41 2.39 22.00 31535.27
RylBkC 79.60 -0.67 83.87 71.74 3.85 11.98 92139.97 DiscFinServ 58.04 -0.73 66.75 54.02 1.71 11.52 25682.99 ProctGmbl 78.28 -0.28 93.89 77.29 3.40 20.13 212373.29
HenkelKgaA 91.67 -0.63 99.44 66.70 - 24.51 26868.56 Netherlands (€) Diageo 1782 -13.50 2055 1689.5 2.90 22.96 68745.39
Suncor En♦ 36.01 -0.29 47.18 30.89 3.03 59.04 41756.69 Disney 110.61 -0.56 113.30 78.54 1.08 22.99 187678.76 Prudntl♦ 86.69 -0.30 94.30 74.51 2.65 17.10 39270.57
Linde 170.75 -2.55 195.55 142.85 1.73 29.05 35779.57 Altice 114.10 -0.40 132.60 40.21 - 418.91 31917.95 GlaxoSmh 1411.5 -26.00 1645 1296.5 - - 105525.57
ThmReut♦ 49.51 -0.44 53.00 37.24 3.45 15.99 31153.64 DominRes♦ 68.14 -0.30 80.89 64.71 3.72 26.31 40245.48 PublStor 192.92 -0.10 206.92 162.34 3.00 34.12 33355.07
MuenchRkv 166.05 -1.40 206.50 141.10 4.30 9.54 32398.57 ASML Hld 99.24 -0.41 104.85 61.58 0.61 32.65 48495.43 Glencore 281.40 -7.60 379.45 236.20 3.90 25.00 57040.58
TntoDom 54.22 -0.68 58.20 49.67 3.64 12.90 80538.53 DowChem 52.26 -0.75 54.97 41.45 3.13 15.65 60249.55 Qualcomm♦ 69.07 -0.79 81.97 62.26 2.52 15.78 112554.34
SAP 66.82 -0.54 70.81 50.08 1.47 25.71 92612.18 Heineken 68.84 0.04 76.14 50.43 1.37 24.75 44735.29 HSBC♦ 618.80 -6.50 674.57 550.67 5.54 12.97 185506.08
TrnCan 51.30 -1.52 63.86 49.30 3.89 20.82 29171.95 DukeEner♦ 74.47 0.27 89.97 68.81 4.40 20.48 51495.33 Raytheon 100.84 -1.36 113.36 89.17 2.55 14.14 30770.52
Siemens 96.73 -0.36 106.35 80.17 3.29 14.75 96143.97 ING 14.90 -0.05 15.24 9.49 - 32.79 65019.21 ImpTob 3269 7.00 3413 2474 3.92 16.37 48104.68
ValeantPh 291.72 -6.34 308.10 116.01 - 76.94 79786.57 DuPont♦ 70.04 -1.23 80.65 63.70 2.75 19.46 63402.8 Regen Pharm 516.69 2.47 519.46 269.50 - 159.98 52343.6
Volkswgn 215.50 -0.75 254.50 147.35 1.83 9.49 71744.14 Philips 24.56 -0.01 28.00 20.69 - 120.19 25902.46 LlydsBkg 87.50 -1.43 89.35 70.72 0.86 -2.30 95945.93
China (HK$) Natl Grid♦ 869.00 -46.50 965.00 827.50 5.02 15.22 50221.54 Eaton 71.91 -0.96 79.98 57.11 2.91 18.12 33619.05 ReynoldsAm 74.28 -0.11 77.68 55.22 3.73 25.60 39517.94
Hong Kong (HK$) Unilever 37.86 -0.16 42.75 28.75 3.14 20.01 73232.42
AgricBkCh 4.24 0.01 4.55 3.38 5.46 5.86 16812.91 Prudential 1609 -8.00 1761.5 1287 2.18 18.53 63444.16 eBay 62.19 0.18 63.03 46.34 - 25.06 75549.76 Salesforce 72.39 -1.08 78.46 50.21 - -284.14 47487.84
AIA 50.90 0.05 58.20 38.25 0.86 23.30 79102.38 Norway (Kr)
Bk China 5.23 0.05 5.68 3.37 4.85 6.97 56416.6 RBS 351.80 2.30 414.00 308.00 - -32.42 34389.5 Ecolab 114.44 -1.93 118.46 97.78 1.09 27.09 34074.24 Schlmbrg♦ 90.33 -1.03 118.76 75.60 1.95 22.57 114694.42
BOC Hold 32.20 -0.20 33.70 22.30 3.09 14.06 43916.9 DNB 138.40 0.60 143.00 98.10 1.94 10.44 29135.32
BkofComm♦ 8.05 0.42 8.20 5.13 4.18 6.92 36357.72 ReckittB 5774 -41.00 6130 4895 2.37 25.37 63741.46 EMC 27.14 0.09 30.92 25.07 1.75 20.77 52707.54 SempraEgy 104.98 0.22 116.30 96.13 2.64 18.85 25990.96
Ch OSLnd&Inv 28.35 0.20 34.05 18.52 1.70 8.50 36061.33 Statoil 143.90 -2.80 195.80 118.20 7.35 -12.38 59303.93
Ch Evrbrght♦ 5.19 0.14 5.65 3.37 4.29 6.46 4598.62 Reed Els 1075 -13.00 1199 906.50 2.32 25.29 34485.94 Emerson♦ 59.24 -1.10 68.80 54.95 3.14 15.10 39590.39 Shrwin-Will 283.74 -3.52 294.35 201.36 0.85 30.02 26440.68
ChngKong 114.30 -3.70 174.90 112.60 3.05 4.99 34150.87 Telenor 179.80 -1.40 183.50 128.90 3.87 29.05 34891.45
Ch Yangtze RMB 14.45 0.37 14.57 6.00 2.01 17.61 22710.67 RioTinto 2850 -31.50 3530.5 2600 4.60 12.65 61905.36 EOG Res 88.37 -0.64 118.89 81.07 0.69 22.44 48510.88 SimonProp 179.25 0.32 206.31 162.43 3.06 37.44 55793.49
Citic Ltd♦ 14.76 -0.28 16.88 12.60 1.77 9.11 47416.43
ChCommsCons 13.48 -0.12 17.00 5.07 1.80 11.91 7699.02 Qatar (QR) RollsRoyce 972.50 -14.50 1094 777.00 2.30-249.36 28230.92 EquityResTP 72.06 0.15 82.53 60.44 2.95 36.26 26229.03 SouthCpr 30.33 -0.34 33.90 23.60 1.50 18.63 24204.13
Citic Secs 31.80 -0.20 40.50 16.20 0.62 19.53 4833.7
ChConstBk 7.91 0.12 7.98 5.34 4.91 6.65 245317.02 QatarNtBk 193.70 0.60 237.00 160.00 4.00 12.27 37236.12 RylDShlA 1901.5 -36.50 2475.5 1901.5 6.94 12.08 113790.57 Exelon♦ 33.82 0.40 38.93 30.66 3.79 12.71 29127.26 SouthwestAir♦ 37.63 -0.09 47.17 25.47 0.66 17.45 25148
CNOOC♦ 11.92 -0.50 15.88 9.72 4.70 7.19 68653.05
China Vanke - - - - - - - Russia (RUB) SABMill 3403.5 -30.50 3857 3105 1.90 24.55 84360 ExpScripts 86.40 -0.13 91.21 65.08 - 29.39 63010.74 Starbucks 51.84 -0.28 52.46 35.39 1.16 29.51 77785.92
Hanergythn 3.91 -3.46 9.07 1.13 - 52.87 21040.25
ChinaCitic 6.62 0.06 7.40 4.55 4.99 5.88 12708.92 Gzprm neft 140.10 -0.61 166.94 113.73 4.71 22.10 59394.71 Shire 5465 -50.00 5755 3431.23 0.27 13.96 49535.74 ExxonMb♦ 84.03 -0.92 104.76 82.68 3.40 12.18 351338.53 StateSt 77.63 -0.72 80.92 64.21 1.60 16.06 31958.68
HangSeng♦ 155.30 -0.50 161.50 123.20 3.49 19.92 38300.98
ChinaCNR 15.86 0.78 21.95 4.99 - 25.51 4365.2 Lukoil 2506.9 26.60 3297.7 1911.5 2.37 7.45 38184.8 StandCh 1044.5 -7.50 1346.44 557.50 5.29 15.42 39673.85 Facebook 82.17 -0.27 86.07 61.79 - 77.29 184791.83 Stryker 95.19 -0.85 98.24 77.87 1.41 52.66 36020.77
HK Exc&Clr♦ 294.00 -0.40 311.40 142.10 1.19 67.35 45038.97
ChinaLife♦ 36.35 -0.10 41.00 20.05 1.07 64.35 34892.49 MmcNrlskNckl 9766 62.00 12247 6548 11.87 13.98 27675.46 Tesco 208.65 -1.75 305.00 155.40 5.41 -2.97 26038.33 Fedex 179.54 -0.38 183.51 138.30 0.33 20.68 50945.67 Sychrony Fin 32.85 -0.33 33.96 22.60 - 12.58 27389.17
Hutchison 115.00 -2.90 119.40 85.90 2.02 7.43 63209.51
ChinaMBank 25.60 0.70 26.85 13.12 3.13 8.56 15160.85 Rosneft 235.10 2.00 294.20 183.95 5.01 7.81 44620.13 Vodafone 248.10 -2.30 257.95 179.10 5.62 68.35 101040.79 FordMtr 15.13 -0.07 18.12 13.26 3.59 18.83 59074.76 Target♦ 80.23 -0.11 83.98 56.50 2.48 20.38 51226.19
MTR♦ 36.65 -0.25 40.00 28.80 2.47 13.85 27608.58
ChinaMob♦ 102.80 -1.80 118.00 73.75 3.02 15.59 271520.84 Surgutneftegas 31.71 0.20 39.80 21.82 2.53 2.52 20284.15 WPP♦ 1505 -54.00 1616 1091 2.34 18.69 30475.76 Franklin 50.55 -0.57 59.43 49.12 1.11 12.75 31268.17 TE Connect♦ 68.42 -1.09 73.73 51.03 1.75 14.54 27818.97
SandsCh 29.80 1.35 61.65 28.05 5.72 12.36 31017.77
ChinaPcIns♦ 40.00 -0.50 47.10 25.90 1.29 21.91 14320.44 GenDyn 140.02 -0.66 145.92 114.04 1.83 16.38 46029.16 TexasInstr 54.62 -0.27 59.99 41.47 2.43 18.91 56824.65
SHK Props 131.60 -2.40 137.60 104.60 2.51 12.23 48784.58 Saudi Arabia (SR) United States of America ($)
ChinaRailCons 14.80 -0.06 17.70 6.67 1.14 12.14 3964.02 GenElectric 27.46 -0.07 28.68 23.41 3.39 218.62 276685.01 TheTrvelers 100.35 -0.66 110.49 88.81 2.27 9.35 31981.38
Tencent 157.80 -0.30 171.00 104.50 0.16 46.52 190837.96 AlRajhiBnk 66.95 -0.07 79.50 48.40 2.82 16.77 29010 3M♦ 159.23 -0.93 170.50 130.60 2.33 20.39 101006.11
ChinaRailGp♦ 10.32 -0.06 12.30 3.62 0.83 16.25 5601.17 GenGrwthPrp 27.48 -0.07 31.70 22.92 2.37 26.51 24352.86 ThrmoFshr 129.65 -0.33 139.03 107.33 0.48 29.06 51608.08
India (Rs) Natnlcombnk 67.43 -0.06 72.75 49.50 - 14.92 35865.21 AbbottLb 48.79 -0.07 49.43 39.28 1.91 35.35 72636.47
ChMinsheng 10.64 -0.02 11.88 6.73 2.15 6.53 9516.68 GenMills 55.34 -0.36 57.73 48.32 2.95 24.11 32987.62 TimeWrnr♦ 85.48 -0.49 88.25 67.60 1.58 20.67 70487.01
Bhartiartl 416.40 -4.30 435.00 326.60 0.82 34.04 26002.01 SaudiBasic 103.44 -0.52 136.50 70.25 5.03 12.99 82749.78 Abbvie 67.61 0.60 70.76 51.37 2.68 57.91 107707.87
ChMrchSecs RMB 31.55 -0.01 40.00 9.88 0.50 29.60 24437.64 GenMotors 35.69 -0.25 39.00 28.82 3.48 16.04 57361.24 TimeWrnrC 177.04 0.11 184.89 128.78 2.19 24.15 50046.2
HDFC Bk 1014.95 9.40 1109.3 791.40 0.67 26.92 38278.79 SaudiTelec 68.09 -0.74 76.50 55.00 5.31 11.93 36313.7 Accenture 96.02 -0.96 97.95 73.98 2.02 21.75 76373.73
ChShenEgy♦ 19.24 -1.16 24.40 18.62 6.12 9.21 8435.08 GileadSci 114.20 -0.45 116.83 78.50 - 12.58 167829 TJX Cos 65.98 -0.04 71.03 51.91 1.06 20.61 44891.8
Hind Unilevr 822.65 -8.80 981.00 591.10 1.38 45.68 27792.57 Singapore (S$) Ace 106.07 -0.81 117.89 99.45 2.54 12.31 34641.66
ChShpbldng RMB 17.69 -0.05 20.19 4.36 0.27 158.84 51229.63 GoldmSchs♦ 209.11 0.82 210.17 160.86 1.14 10.65 90338.84 T-MobileUS 40.00 1.67 40.77 24.26 - 98.43 32416.61
HsngDevFin 1216 13.15 1402.3 891.00 1.15 22.49 29862.15 DBS♦ 20.38 0.27 21.23 16.72 2.89 12.25 37930.99 Actavis 304.03 -2.39 317.72 201.91 - -32.29 119314.94
ChStConEng RMB 9.69 -0.28 12.52 2.77 1.53 11.83 46650.13 Google 552.27 -3.02 608.91 490.91 - 26.49 159199.93 Twitter 36.84 -0.16 55.99 31.85 - -36.46 24121.88
ICICI Bk♦ 290.10 -5.65 393.40 266.66 3.17 13.92 26237.23 JardnMt US$ 60.21 0.16 67.88 57.00 2.31 13.26 42063.11 Adobe 79.26 -0.87 80.74 58.51 - 132.33 39651.33
ChUncHK♦ 13.16 -0.10 16.00 10.04 1.60 21.18 40653.28 Halliburton♦ 45.05 -0.57 74.33 37.21 1.52 17.04 38331.89 UnionPac♦ 102.01 0.02 124.52 96.17 2.03 16.80 89644.43
Infosys 2028.05 7.15 2336 1475 1.99 17.38 36384.59 JardnStr US$ 32.40 0.07 38.10 31.98 0.79 10.88 36291.32 AEP♦ 54.37 -0.01 65.38 49.06 3.92 15.10 26620.67
CSR 15.00 0.94 20.70 5.72 0.78 29.20 8457.93 HCA Hold 80.95 -0.14 83.88 53.61 - 16.42 33539.24 UPS B 100.13 -0.47 114.40 94.05 2.83 28.27 70242.8
ITC♦ 301.60 -2.80 409.95 298.20 1.72 27.53 37470.63 OCBC♦ 10.00 -0.04 10.92 9.38 3.51 9.51 29578.57 Aetna 115.94 -1.01 120.19 71.81 1.05 18.53 40486.25
Daqin RMB 13.07 0.17 14.72 6.24 3.41 13.15 31335.03 Hew-Pack 33.47 -0.49 41.10 31.00 1.91 12.51 60833.69 USBancorp 43.67 -0.30 46.10 38.10 2.32 13.55 77428.44
L&T 1662.45 8.80 1893.8 1401 0.86 27.94 24071.63 SingTel 4.17 0.10 4.57 3.63 4.04 17.78 49353.98 Aflac 62.26 -0.25 65.10 54.99 2.53 9.38 27013.64
GF Secs RMB 27.35 0.36 32.88 9.50 0.76 23.21 26107.51 HiltonWwde 29.14 -0.15 31.60 20.72 - 39.69 28774.26 Utd Cntl Hldg 55.33 -0.54 74.52 36.65 - 9.37 21136.14
OilNatGas 301.35 -6.50 471.85 298.80 3.20 9.85 40274.88 UOB 22.80 0.08 25.05 21.53 3.12 11.04 27118.8 AirProd 144.81 -3.53 158.20 118.20 2.23 29.37 31100.08
GuosenSec - - - - - - - HlthcareREIT 69.82 0.53 84.88 61.42 4.76 57.19 24480.75 UtdHlthcre 116.49 -1.86 123.76 77.53 1.33 18.58 110887.33
RelianceIn 912.70 16.35 1133 796.45 1.04 11.64 46124.76 Alexion 160.13 -1.40 203.30 150.06 - 52.99 31958.23
HaitongSecs 25.05 0.15 27.90 11.42 0.63 17.70 11017.75 South Africa (R) HomeDep♦ 111.80 -1.36 117.99 77.75 1.79 22.70 145225.52 UtdTech♦ 117.29 -1.22 124.45 97.30 2.13 16.00 104411.77
SBI NewA♦ 257.60 0.20 336.00 234.61 1.14 12.15 30042.55 Allstate♦ 67.07 -0.66 72.87 56.63 1.76 9.94 27430.45
HuataiSec RMB 29.97 0.49 34.31 7.38 0.52 28.47 26388.67 Firstrand 51.65 0.01 58.47 39.21 3.54 13.61 23459.16 Honywell♦ 103.70 -1.28 107.10 82.89 1.93 18.36 81063.07 ValeroEngy♦ 57.15 -0.61 64.49 42.53 2.17 7.57 29067.71
SunPhrmInds 831.55 -10.85 1200.8 593.00 0.18 29.12 26904.25 Altria 50.13 -0.22 56.70 40.26 4.21 19.50 98583.54
In&CmBkCh 6.75 0.03 7.10 4.74 5.02 6.69 75575.05 MTN Grp 212.84 -4.66 263.44 198.00 5.49 11.61 31837.26 HumanaInc 212.68 -0.93 219.79 115.51 0.54 26.31 31855.48 Verizon 48.29 -0.79 53.66 45.09 4.67 19.58 196950.14
Tata Cons 2605.65 -5.25 2839.7 2056 1.30 23.74 79727.55 Amazon 432.48 -4.11 452.65 284.00 - -476.82 201397.7
IndstrlBk RMB 19.52 0.96 21.42 9.43 2.44 7.40 50931.49 Naspers N 1780 -18.72 2029.97 1130.01 0.25 60.50 60417.65 IBM♦ 169.25 -0.67 196.40 149.52 2.69 10.43 166666.24 VertexPharm 127.00 0.08 137.50 63.68 - -41.30 30956.54
Tata Motors 451.20 -5.65 612.40 417.15 0.44 9.76 22893.28 AmerAir 42.66 -0.47 56.20 28.10 0.73 9.00 29554.8
Kweichow RMB 258.21 -4.58 290.00 139.22 1.75 17.79 47552.87 South Korea (KRW) IllinoisTool 93.64 -1.44 100.14 79.06 2.07 18.53 34430.61 VF Cp 70.89 -0.25 77.83 59.82 1.70 28.82 30126.49
AmerExpr 79.64 -0.96 96.24 76.53 1.35 13.39 80897.97
PetroChina 9.06 -0.07 11.70 7.93 4.66 16.45 24658.92 Indonesia (Rp) HyundMobis 203500-1000.00 312000 197500 1.53 8.93 17455.4 Illumina 208.89 -0.03 213.33 145.12 - 69.70 30100.33 Viacom 68.71 0.50 89.76 63.11 1.99 15.62 23814.39
AmerIntGrp 60.59 -0.52 61.28 48.56 0.85 9.95 80790.43
PingAnIns 112.80 -0.10 125.80 57.05 0.81 15.44 54185.14 Astra Int 7025 -25.00 8575 6325 3.17 13.46 21412.16 KoreaElePwr 44500 -800.00 50200 36650 1.12 10.39 25648.59 Intcntl Exch 234.46 0.22 241.98 182.40 0.86 24.91 26097.64 Visa Inc 68.40 -0.55 70.69 48.80 0.67 29.60 133888.27
Amerisrcbrgn 111.74 -0.64 120.68 71.00 0.97 -36.47 24547.66
PngAnBnk RMB 16.37 0.54 17.50 7.84 0.84 10.68 31161.52 Bk Cent Asia 13625 25.00 15600 10700 0.96 18.93 25291.6 SK Hynix 48300-1500.00 52400 40300 0.65 8.07 31569.84 Intel 32.39 -0.34 37.90 27.43 2.92 13.31 153658.16 Walgreen♦ 85.37 -0.45 93.42 57.75 1.55 25.03 93117.88
AmerTower 94.75 2.07 105.20 87.05 1.53 47.14 40087.68
SaicMtr RMB 24.86 -0.25 29.18 14.40 5.00 9.30 44201.83 BnkRakyat 11125 -125.00 13450 9850 5.22 10.68 20662.89 SmsungEl 1337000 64000 1510000 1078000 1.07 8.30 155226.26 Intuit 106.01 -0.84 109.21 77.96 0.89 95.09 29222.28 WalMartSto 74.31 -0.58 90.97 72.61 2.64 14.56 239687.14
Amgen♦ 157.16 0.03 173.60 114.93 1.73 20.50 119492.47
ShenwanHong - - - - - - - Israel (ILS) Spain (€) John&John♦ 99.43 -0.66 109.49 95.10 2.91 17.21 275723.9 WasteMgmt♦ 48.69 -0.56 55.93 43.49 3.21 23.17 22291.36
Anadarko 83.17 -0.75 113.51 71.00 1.34 -17.34 42245.02
ShgPdgBk RMB 18.63 0.73 19.05 8.90 3.67 7.07 44833.25 TevaPha 230.90 -2.60 267.40 175.00 2.30 18.11 50830.25 BBVA 9.07 -0.08 9.99 7.21 0.87 15.52 64541.24 JohnsonCn♦ 52.44 -0.44 53.45 38.60 1.89 22.13 34336.04 Wellpoint 128.71 0.94 129.96 81.84 1.59 12.63 34744.16
Aon Cp 101.13 -0.78 107.08 78.26 1.02 20.56 28502.72
Sinopec 6.68 -0.09 8.23 5.90 4.68 17.54 21985.19 BcoSantdr 6.57 -0.03 7.96 5.77 8.48 13.69 106150.82 JPMrgnCh 66.35 -0.35 67.19 54.26 2.50 11.74 246230.63 WellsFargo 56.13 -0.79 57.20 46.44 2.58 13.25 288999.13
Italy (€) AppldMat♦ 20.07 -0.30 25.71 18.63 1.99 19.58 24712.02
Denmark (kr) CaixaBnk 4.42 -0.01 5.00 3.71 - 32.33 28764.32 Kimb-Clark♦ 107.38 -0.60 119.01 99.20 3.28 26.53 39096.97 Williams Cos 49.17 -0.74 59.77 40.07 4.49 17.22 36826.44
Enel 4.27 -0.11 4.50 3.36 3.22 80.74 45257.33 Apple 129.62 -0.50 134.54 89.65 1.50 15.55 746745.28
DanskeBk 197.90 -0.40 201.00 139.20 2.73 33.64 30187.51 Iberdrola 6.17 -0.10 6.46 5.11 2.48 17.00 43401.26 KinderM 40.45 -0.42 44.71 33.25 4.45 47.44 87701.86 Yahoo 43.06 -0.15 52.62 32.93 - 5.66 40409.34
ENI 15.98 -0.32 20.46 12.98 6.84 112.49 65519.24 ArcherDan♦ 51.88 -0.59 53.91 41.63 1.99 13.17 32425.58
MollerMrsk 13190 -210.00 16450 11020 2.26 15.96 42805.24 Inditex 30.36 -0.22 31.05 19.29 1.29 36.94 106734.17 Kraft 83.92 -0.34 91.32 53.33 2.65 50.40 49676.32 Yum!Brnds 90.68 -0.87 95.90 65.81 1.78 38.93 39210.1
Generali 17.31 -0.29 19.21 14.40 2.56 15.00 30404.32 AT&T 35.39 0.36 37.48 32.07 5.44 30.90 183780.27
NovoB 380.90 -1.60 400.20 233.20 1.29 33.88 152654.95 Repsol 17.14 -0.31 20.21 14.26 2.20 18.84 26575.12 Kroger 72.35 -0.24 77.74 46.77 0.96 20.34 35466.08
IntSPaolo 3.30 -0.02 3.38 2.00 1.49 29.45 58995.78 AutomData 84.46 -1.01 90.23 70.50 2.38 24.23 39656
Telefonica 12.83 -0.15 14.00 10.76 3.04 20.75 71482.46 L Brands♦ 88.22 2.06 95.78 56.57 1.58 24.66 25798.16 Closing prices and highs & lows are in traded currency (with variations for that
Finland (€) Luxottica 60.70 -0.45 62.50 34.74 1.05 42.51 33016.11 Avago Tech 141.59 -1.47 150.50 68.71 0.89 73.59 36330.18
LasVegasSd 54.88 2.38 78.50 49.57 4.05 16.54 43831.79 country indicated by stock), market capitalisation is in USD. Highs & lows are
Nokia 6.67 0.08 7.87 5.38 1.63 22.93 27657.83 Unicred♦ 6.50 -0.03 6.89 4.82 - 16.87 43117.07 Sweden (SKr) BakerHu♦ 64.08 -0.61 75.64 47.51 1.07 33.82 27854.01
LibertyGbl 55.23 -0.59 58.66 39.95 - -38.34 13921.64 based on intraday trading over a rolling 52 week period.
SampoA 43.34 0.06 49.40 34.77 3.75 15.17 27323.12 Japan (¥) AtlasCpcoB 226.50 -2.00 270.00 165.20 2.40 22.04 33465.39 BankAm♦ 16.82 -0.12 18.21 14.84 0.98 24.02 176592.82
Lilly (E)♦ 77.96 0.13 79.85 58.50 2.62 36.84 86515.42 ♦ ex-dividend
France (€) AstellasPh 1814.5 -12.00 2047 1278 1.58 40.33 32380.21 Ericsson 97.15 2.95 120.00 77.90 3.20 26.47 38948.86 Baxter♦ 65.49 -0.41 77.31 65.14 3.29 18.62 35643.21
LinkedIn 214.70 1.45 276.18 152.18 - -573.24 23676.66 ■ ex-capital redistribution
Airbus Grpe 60.77 -0.66 66.10 39.64 1.22 17.94 53983.54 Bridgestne 4862 -49.50 5182 3328 2.21 11.80 31752.17 H&M 334.60 -1.60 368.50 269.60 2.79 26.92 67177.42 BB & T 39.84 -0.16 40.21 34.50 2.49 14.09 28810.67
Lockheed♦ 191.20 -0.69 207.06 156.23 3.06 16.67 60182.22 # price at time of suspension
AirLiquide 115.95 -1.25 123.95 87.17 2.11 22.70 44991.64 Canon 4240 -20.00 4539 3172 3.80 18.05 45421.13 Investor 330.80 -2.60 363.40 219.30 2.39 3.52 30785.09 BectonDick 140.18 -0.40 149.98 112.15 1.69 24.85 29351.68
Lowes 70.21 -0.44 76.25 45.10 1.31 24.90 65483.86
CntJpRwy 21005 -195.00 24800 13320 0.58 14.67 34753.86 Nordea Bk 110.00 -1.10 115.50 82.40 5.16 13.40 53682.64 BerkshHat 212915.49-1684.51 229374 185005 - 16.63 182352.11

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
TevaPha 230.90 233.50 -2.60 -1.11 228.53 9622.1 -1.41 SunPhrmInds 831.55 842.40 -10.85 -1.29 -144.00 -14.8 -11.43 Jun 04 date Coupon S* M* F* price yield yield yield US Jun 04 date Coupon S* M* F* price yield yield yield US
HumanaInc 212.68 213.61 -0.93 -0.44 34.27 19.2 26.07 HuataiSec 29.97 29.48 0.49 1.66 -3.32 -10.0 2.88 High Yield US$ US$
LinkedIn 214.70 213.25 1.45 0.68 18.47 9.4 5.62 HyundMobis 203500.00 204500.00 -1000.00 -0.49 -22000.00 -9.8 -13.95 Windstream Services, LLC 11/17 7.88 BB- B1 BB 108.05 4.35 0.03 -0.19 3.69 Merrill Lynch & Co., Inc. 09/26 6.22 BBB+ Baa3 A- 115.61 4.49 0.11 0.21 2.15
LasVegasSd 54.88 52.50 2.38 4.54 3.83 7.5 2.69 OilNatGas 301.35 307.85 -6.50 -2.11 -30.65 -9.2 -0.87 High Yield Euro Citigroup Inc. 11/26 4.30 BBB+ Baa3 A- 98.64 4.50 0.11 0.18 2.16
Ch Yangtze 14.45 14.08 0.37 2.63 0.74 5.4 9.39 ChMrchSecs 31.55 31.56 -0.01 -0.03 -2.93 -8.5 -14.71 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 95.81 - 0.00 0.00 - Halliburton Company 02/27 6.75 A A2 A- 120.19 4.55 0.11 0.14 -
Mizuho Fin 269.10 266.80 2.30 0.86 13.10 5.1 18.43 SBI NewA 257.60 257.40 0.20 0.08 -23.15 -8.2 -4.50 Korea Electric Power Corporation 08/27 6.75 A+ Aa3 AA- 98.64 7.03 0.11 0.07 -
BkofComm 8.05 7.63 0.42 5.50 0.36 4.7 1.00 ICICI Bk 290.10 295.75 -5.65 -1.91 -23.05 -7.4 -12.40 Emerging US$ SouthTrust Bank 12/27 6.57 A+ Aa3 A+ 118.81 4.63 0.11 0.12 -
T-MobileUS 40.00 38.33 1.67 4.36 1.68 4.4 16.98 ChStConEng 9.69 9.97 -0.28 -2.81 -0.75 -7.2 -11.10 Peru 05/16 8.38 BBB+ A3 BBB+ 121.00 1.23 0.00 0.00 0.57 FleetBoston Financial Corp. 01/28 6.88 BBB+ Baa3 A- 119.02 4.90 0.11 0.00 -
Nissan Mt 1330.50 1319.50 11.00 0.83 50.00 3.9 6.64 Natl Grid 869.00 915.50 -46.50 -5.08 -66.40 -7.1 -1.95 Mexico 09/16 11.40 BBB+ A3 BBB+ 113.25 0.86 0.00 -0.09 0.20
Brazil 01/18 8.00 BBB- Baa2 BBB 108.44 4.57 0.00 0.00 3.91 Euro
NTTDCMo 2319.00 2334.00 -15.00 -0.64 85.00 3.8 8.96 ChinaLife 36.35 36.45 -0.10 -0.27 -2.75 -7.0 -3.71 Eni SpA 02/26 1.50 A- A3 A 94.65 2.06 0.00 0.46 -0.28
MmcNrlskNckl 9704.00 9704.00 0.00 0.00 324.00 3.5 1.31 PingAnIns 112.80 112.90 -0.10 -0.09 -8.50 -7.0 1.26 Russia 07/18 11.00 BB+ Ba1 BBB- 121.99 3.54 0.04 0.09 2.89
Peru 03/19 7.13 BBB+ A3 BBB+ 117.23 2.38 0.04 0.14 0.71 Citigroup Inc. 09/26 2.13 A- Baa1 A 100.96 2.03 0.00 0.24 -0.31
Utd Cntl Hldg 55.33 55.87 -0.54 -0.97 1.84 3.4 -9.11 BnkRakyat 11125.00 11250.00 -125.00 -1.11 -825.00 -6.9 -3.23 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 95.47 3.09 0.20 0.34 -
BkNvaS 66.73 66.73 0.00 0.00 2.16 3.3 -1.65 Kweichow 258.21 262.79 -4.58 -1.74 -18.69 -6.7 2.37 Brazil 01/21 7.88 BBB- Baa2 BBB 105.38 3.84 0.09 0.15 2.17
Turkey 03/21 5.63 - Baa3 BBB- 107.90 4.13 0.09 0.09 2.45 Philip Morris Intl, Inc. 05/29 2.88 A A2 A 109.20 2.11 0.00 0.32 -
Fanuc 27555.00 27415.00 140.00 0.51 865.00 3.2 3.72 Citic Secs 31.80 32.00 -0.20 -0.63 -2.30 -6.7 -7.83
Poland 04/21 5.13 A- A2 A- 111.59 2.98 0.09 0.25 1.31 Yen
CredSuisse 25.97 25.97 0.00 0.00 0.80 3.2 8.28 Altice 114.10 114.50 -0.40 -0.35 -8.00 -6.6 17.79
Colombia 07/21 4.38 BBB Baa2 BBB 104.48 3.58 0.09 0.17 1.91 Wal-Mart Stores, Inc. 07/15 0.94 AA Aa2 AA 100.09 0.28 0.00 0.04 -
ShgPdgBk 18.63 17.90 0.73 4.08 0.56 3.1 3.10 ChinaPcIns 40.00 40.50 -0.50 -1.23 -2.80 -6.5 -5.44
RelianceIn 912.70 896.35 16.35 1.82 27.40 3.1 5.84 EDF 21.17 21.77 -0.60 -2.76 -1.42 -6.3 -5.85 Turkey 04/26 4.25 - Baa3 BBB- 95.37 4.86 0.11 0.11 2.52 £ Sterling
MitUFJFin 924.30 913.70 10.60 1.16 27.70 3.1 9.36 Sinopec 6.68 6.77 -0.09 -1.33 -0.43 -6.0 -7.99 Emerging Euro Southern Water Services (Fin) Limited 03/26 6.64 A- Baa1 A- 129.62 3.33 0.09 0.05 0.99
Infosys 2028.05 2020.90 7.15 0.35 59.55 3.0 4.42 CNOOC 11.92 12.42 -0.50 -4.03 -0.76 -6.0 -9.28 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 Barclays Bank plc 09/26 5.75 BBB- Baa3 A- 112.74 4.30 0.08 0.02 1.96
Telenor 181.20 181.20 0.00 0.00 5.30 3.0 3.15 Airbus Grpe 60.77 61.43 -0.66 -1.07 -3.87 -6.0 -1.35 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.84 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+ 111.24 2.90 0.00 0.12 1.23 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- 116.05 3.89 0.18 0.37 1.55
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
Jun 04 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Jun 04 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.00-0.08 16-12-2008 0.08 0.00-0.25 0.00-0.25 Index change change change 1 month 1 year VIX 14.74 1.08 13.66 31.06 10.28 Jun 04 Price £ Yield Day Week Month Year High Low £m
US Prime 3.25 16-12-2008 3.25 3.25 3.25 Markit IBoxx VXD 14.89 1.06 13.83 23.19 7.04 Tr 2pc '16 100.95 0.49 0.00 0.00 11.36 -30.99 102.14 100.95 0.32
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 178.85 0.20 -0.08 0.32 -1.70 0.83 VXN 15.70 0.67 15.03 31.17 9.66 Tr 1.75pc '17 101.96 0.54 -6.90 3.85 0.00 -51.35 102.68 101.07 0.29
Euro Repo 0.05 10-09-2014 0.15 0.05 0.25 Corporates( £) 293.49 -0.92 -1.91 -0.01 -1.53 7.31 VDAX 15.81 -0.83 16.64 - - Tr 5pc '18 111.50 0.77 -6.10 4.05 -2.53 -49.01 113.65 111.37 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 250.95 -0.44 -0.96 0.19 -0.96 0.19 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 112.57 1.08 -4.42 5.88 1.89 -40.66 115.07 111.17 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 210.97 -0.57 -1.25 -0.81 -1.68 3.14 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 115.74 1.32 -4.35 6.45 3.94 -35.92 119.04 113.53 0.33
Switzeland Libor Target 0.00-0.25 03-08-2011 0.00-0.75 0.00-0.25 0.00-0.25 Eurozone Sov(€) 220.16 -0.76 -1.92 -0.68 -3.40 6.30 Tr 8pc '21 137.00 1.53 -3.77 7.75 6.25 -32.30 142.92 135.65 0.24
Gilts( £) 280.08 -1.22 -2.36 -1.95 -1.88 8.74 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 115.03 1.64 -4.09 8.61 7.19 -31.95 119.85 110.38 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 246.51 0.09 -0.58 -1.73 -1.46 -2.96 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 126.35 2.01 -2.90 9.84 9.24 -28.47 134.70 119.37 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 292.98 -0.90 -1.87 -0.17 -1.49 7.34 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 121.86 2.24 -2.18 8.74 9.27 -26.07 131.90 112.61 0.31
Jun 04 (Libor: Jun 03) night Day Week Month month month month year Overall ($) 224.48 -0.36 -0.85 0.14 -0.85 0.14 Australia 10/18 3.25 103.61 2.13 -0.01 0.15 0.01 -0.99 Tr 4.25pc '32 124.48 2.48 -2.36 6.44 7.83 -23.69 136.85 112.95 0.35
US$ Libor 0.12300 -0.001 0.000 0.000 0.18500 0.27920 0.42040 0.74545 Overall( £) 281.32 -1.12 -2.21 -1.40 -1.76 8.28 04/26 4.25 110.32 3.12 0.01 0.30 0.17 -0.83 Tr 4.25pc '36 126.42 2.60 -1.89 6.56 7.00 -22.62 140.37 113.08 0.26
Euro Libor -0.17857 -0.004 -0.003 0.000 -0.07000 -0.01429 0.05500 0.17286 Overall(€) 217.13 -0.69 -1.62 -0.63 -2.74 5.24 Austria 10/18 1.15 103.54 0.10 -0.03 0.08 0.05 -0.47 Tr 4.5pc '42 135.62 2.66 -2.21 5.98 6.40 -22.22 153.16 118.96 0.26
£ Libor 0.48063 0.000 0.000 -0.003 0.50694 0.57031 0.71294 1.00119 Treasuries ($) 215.03 -0.34 -0.88 -0.02 -0.88 -0.02 10/24 1.65 105.95 0.98 -0.03 0.30 0.27 -0.83 Tr 3.75pc '52 125.73 2.66 -2.21 5.98 5.98 -22.45 145.21 106.18 0.22
Swiss Fr Libor 0.001 -0.82400 -0.78800 -0.71060 -0.59960 FTSE Belgium 06/18 0.75 101.76 0.16 0.02 -0.04 -0.07 -0.69 Tr 4pc '60 136.59 2.61 -2.25 5.67 5.67 -23.01 159.23 113.50 0.21
Yen Libor -0.005 0.05929 0.09429 0.13500 0.24971 Sterling Corporate (£) 111.98 0.12 - - -1.76 3.00 06/25 0.80 96.85 1.13 -0.04 0.28 0.25 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor -0.001 -0.06100 -0.01400 0.04800 0.16000 Euro Corporate (€) 107.57 -0.05 - - -1.92 1.02 Canada 05/17 0.25 99.37 0.59 -0.01 -0.04 -0.10 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.50000 0.57000 0.73500 Euro Emerging Mkts (€) 960.43 -2.91 - - -7.58 -1.09 06/25 2.25 104.44 1.76 -0.01 0.09 0.02 0.00
US$ CDs
Euro CDs
0.000
0.000
0.15000
-0.10500
0.23000
-0.06500
0.36000
-0.00500
Eurozone Govt Bond 112.58 0.13 - - -3.56 3.71 Denmark 11/16 2.50 104.21 -0.41 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 1.75 107.65 0.98 -0.01 0.29 0.27 -0.80
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 99.35 1.23 0.03 0.10 0.00 0.00
Fixed Coupon Jun 04 chg % Return 1 month 1 year Yield
Jun 04 term notice month month month year Markit iTraxx 07/25 4.00 128.97 0.97 -0.06 0.29 0.27 -0.87
1 Up to 5 Years 99.15 0.11 2347.33 0.19 2.49 0.99
Euro -0.20 -0.10 -0.20 -0.10 -0.18 -0.03 -0.14 0.01 -0.08 0.07 0.06 0.21 Crossover 5Y 296.31 7.48 16.80 14.29 299.29 242.25 France 11/16 0.25 100.61 -0.16 0.00 0.00 0.00 0.00
2 5 - 10 Years 178.36 0.39 3170.80 0.13 6.51 1.76
Sterling 0.40 0.55 0.40 0.55 0.45 0.55 0.52 0.62 0.66 0.81 0.98 1.13 Europe 5Y 64.89 0.28 1.43 2.53 67.16 52.94 11/19 0.50 101.32 0.20 -0.04 0.10 0.04 0.00
3 10 - 15 Years 201.66 0.56 3681.93 -0.25 10.33 2.22
Swiss Franc - - - - - - - - - - - - Japan 5Y 55.15 0.02 2.81 3.72 59.45 48.09 05/25 0.50 94.12 1.13 -0.05 0.29 0.22 0.00
4 5 - 15 Years 183.84 0.42 3296.10 0.05 7.69 1.89
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 74.30 0.08 -0.08 0.10 78.18 62.28 05/45 3.25 129.79 1.93 -0.05 0.29 0.28 -0.98
5 Over 15 Years 289.66 1.06 4140.35 -0.17 17.39 2.61
US Dollar 0.12 0.22 0.12 0.22 0.15 0.25 0.23 0.33 0.35 0.45 0.62 0.72 Germany 06/16 0.25 100.48 -0.23 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 170.45 0.57 3144.78 0.01 9.27 2.34
Japanese Yen 0.00 0.10 0.00 0.10 -0.10 0.10 -0.05 0.15 -0.05 0.15 0.05 0.25 10/19 0.25 100.75 0.08 -0.03 0.00 0.05 0.00
Emerging Markets 5Y 300.22 6.55 13.51 3.81 321.49 278.35 02/25 0.50 96.84 0.84 -0.05 0.31 0.24 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 343.25 4.72 6.26 -6.34 350.53 329.17 08/46 2.50 125.15 1.49 -0.03 0.33 0.32 -0.84
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Jun 04 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 65.19 1.26 2.33 -0.20 65.82 60.22 Greece 07/17 3.38 70.88 22.09 0.15 -0.73 1.75 0.00
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 100.00 100.00 1 Up to 5 Years 311.88 0.00 -0.17 -2.49 2361.64 -0.04 -0.86
02/25 3.00 57.76 10.63 0.08 -0.30 -0.13 4.20 2 Over 5 years 562.17 1.00 -0.11 15.04 4135.09 0.05 16.00
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 113.00 -0.01 0.00 0.00 0.00 0.00 3 5-15 years 428.73 0.25 -0.48 3.52 3242.77 -0.20 4.84
03/25 5.40 134.72 1.54 0.00 0.34 0.25 -1.26 4 Over 15 years 689.37 1.25 0.02 21.28 4979.37 0.14 22.06
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 05/18 0.25 99.43 0.44 -0.01 0.05 0.08 0.00 5 All stocks 522.46 0.84 -0.12 13.31 3889.14 0.04 14.35
05/20 0.70 98.47 1.02 -0.04 0.12 0.21 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
06/25 1.50 94.40 2.14 -0.03 0.28 0.37 0.00 Yield Indices Jun 04 Jun 03 Yr ago Jun 04 Jun 03 Yr ago
Crude Oil† Jun 59.61 0.00 Corn♦ Jul 358.50 -0.50 Mar 06 Mar 06 Prev return stock Market stocks
09/46 3.25 102.98 3.12 -0.05 0.21 0.31 0.00 5 Yrs 1.37 1.43 1.89 20 Yrs 2.62 2.68 3.35
Brent Crude Oil‡ 62.04 -1.72 Wheat♦ Jul 509.50 0.25 Can 4.25%' 21 130.80 -0.425 -0.490 -0.93 5.18 69009.31 7
Japan 05/17 0.10 100.20 0.00 0.00 0.00 0.00 0.00 10 Yrs 2.09 2.15 2.78 45 Yrs 2.63 2.69 3.41
RBOB Gasoline† Jun 2.04 0.00 Soybeans♦ Jul 939.00 3.75 Fr 2.25%' 20 115.64 -0.725 -0.823 -0.57 20.31 216211.53 15
05/20 0.05 99.55 0.14 0.02 0.03 0.00 0.00 15 Yrs 2.45 2.51 3.17
Heating Oil† Jun 1.89 -0.04 Soybeans Meal♦ Jul 304.70 1.90 Swe 0.25%' 22 106.96 -0.630 -0.780 -1.47 29.73 214029.92 6
03/25 0.40 99.33 0.47 0.03 0.07 0.03 0.00
Natural Gas† Jun 2.64 0.00 Cocoa (ICE Liffe)X Jul 2102.00 -11.00 UK 2.5%' 16 325.66 -1.597 -1.613 0.02 7.90 482413.83 24
03/45 1.50 99.28 1.54 0.02 0.04 0.09 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Jul 3128.00 -2.00 UK 2.5%' 24 338.85 -0.712 -0.807 -1.33 6.82 482413.83 24
Netherlands 04/17 0.50 101.24 -0.17 0.00 0.00 0.00 0.00 Real yield Jun 04 Dur yrs Previous Yr ago Jun 04 Dur yrs Previous Yr ago
Uranium Jun 35.55 0.15 Coffee(Robusta)X Jul 1736.00 13.00 UK 2%' 35 228.42 -0.674 -0.787 -2.99 9.08 482413.83 24
07/25 0.25 92.78 1.00 -0.03 0.28 0.23 0.00 Up to 5 yrs -0.90 2.91 -0.90 -1.17 -1.54 2.93 -1.54 -1.85
Carbon Emissions - - Coffee (Arabica)♥ Jul 134.10 -0.35 US 0.625%' 21 102.65 0.188 0.100 -1.32 35.84 1072829.38 36
Diesel Jun 121.25 0.00 White SugarX 351.30 1.20 New Zealand - - - - - - - Over 5 yrs -0.73 23.49 -0.68 -0.06 -0.75 23.58 -0.71 -0.10
US 3.625%' 28 135.37 0.738 0.100 -2.49 16.78 1072829.38 36
Unleaded Jul - - Sugar 11♥ 12.47 0.06 12/17 6.00 106.91 3.13 0.01 0.05 -0.03 -0.77 5-15 yrs -0.71 9.74 -0.68 -0.20 -0.79 9.76 -0.77 -0.33
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/17 4.25 106.67 0.78 0.01 0.04 -0.15 -0.86 Over 15 yrs -0.73 28.19 -0.68 -0.03 -0.75 28.26 -0.71 -0.06
Base Metals (♠ LME 3 Months) Cotton♥ Jul 65.63 0.41 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
03/24 3.00 111.09 1.63 -0.02 0.15 -0.06 -1.03 All stocks -0.73 20.32 -0.69 -0.07 -0.77 20.47 -0.73 -0.12
Aluminium 1745.50 -4.00 Orange Juice♥ Jul 114.00 1.40 amount.
Aluminium Alloy 1775.00 45.00 Palm Oil♣ Jun 623.75 -1.75 Portugal 02/16 6.40 104.40 -0.01 0.00 0.00 0.00 0.00 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 5983.50 -20.00 Live Cattle♣ Jun 152.50 -0.08 BONDS: TEN YEAR GOVT SPREADS 10/25 2.88 100.33 2.84 -0.01 0.33 0.45 0.00
Lead 1947.50 -1.50 Spain 10/17 0.50 100.55 0.27 -0.01 0.03 0.05 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Aug 221.95 -1.30
Nickel 12960.00 20.00 Lean Hogs♣ Jun 83.10 0.00 Spread Spread Spread Spread 10/25 2.15 99.44 2.21 0.00 0.00 0.00 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 15450.00 -110.00 Bid vs vs Bid vs vs Sweden 01/18 0.88 99.31 1.15 0.03 0.10 0.05 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 2156.00 -18.00 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 114.70 0.94 -0.03 0.23 0.17 0.00 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Jun 03 Month Year Australia 3.12 2.28 0.78 Italy 2.14 1.30 -0.20 Switzerland 10/16 2.00 103.89 -0.86 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1176.00 -14.00 S&P GSCI Spt 429.92 -3.13 -33.61 Austria 0.98 0.14 -1.36 Japan 0.47 -0.37 -1.87 05/26 1.25 112.51 0.10 0.00 0.08 -0.08 -0.85
Silver (US cents) 1647.00 -13.00 DJ UBS Spot 100.17 -3.13 - Belgium 1.13 0.29 -1.21 Netherlands 1.00 0.16 -1.34 United Kingdom 07/18 1.25 100.80 0.99 -0.04 0.06 0.00 -0.70 Data provided by Morningstar | www.morningstar.co.uk
Platinum 1100.00 -9.00 R/J CRB TR 222.65 -2.59 -27.19 Canada 1.76 0.92 -0.58 Norway 1.63 0.79 -0.71 07/20 2.00 102.55 1.48 -0.04 0.11 0.05 0.00
Palladium 759.00 -5.00 Rogers RICIX TR 2684.79 - - Denmark 0.98 0.13 -1.36 Portugal 2.84 2.00 0.50 09/25 2.00 98.70 2.14 -0.04 0.21 0.11 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 322.04 -2.64 -29.57 Finland 0.97 0.13 -1.37 Spain 2.21 1.37 -0.13 01/45 3.50 115.62 2.73 -0.04 0.18 0.14 0.00
Iron Ore (Platts) 64.75 1.25 UBS Bberg CMCI TR 15.58 -4.24 -26.72 France 1.13 0.29 -1.21 Switzerland 0.10 -0.74 -2.24 United States 04/17 0.50 99.70 0.66 0.01 0.06 0.02 0.00
Iron Ore (The Steel Index) 63.50 0.90 LEBA EUA Carbon 7.35 0.00 28.05 Germany 0.84 0.00 -1.50 United Kingdom 2.14 1.30 -0.20 05/20 1.50 99.17 1.67 -0.01 0.15 0.00 0.00
GlobalCOAL RB Index 62.10 0.40 LEBA CER Carbon 0.42 -14.29 250.00 Greece 10.63 9.78 8.29 United States 2.34 1.50 0.00 05/25 2.13 98.10 2.34 -0.02 0.20 0.00 0.00
Baltic Dry Index 603.00 5.00 LEBA UK Power 2861.00 -14.72 68.79 Ireland 1.54 0.70 -0.80 05/45 3.00 98.55 3.07 -0.03 0.19 0.00 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.
24 ★★★ FINANCIAL TIMES Friday 5 June 2015

FINANCIAL TIMES SHARE SERVICE

Main Market
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence CoatsGrp 25.50 - 36.00 19.00 - 38.64 83.6 SKF SKr 204.10 -4.70 231.70 134.80 2.67 20.96 1700.6 EVRAZ 157.40 -9.00 209.90 86.20 - -3.15 4408.3 Town Ctr♦ 293.50 - 324.65 230.00 3.56 5.50 1.3 Lavendon 202.75 -2.25 228.75 155.50 1.87 24.80 98.3
AvonRub 830.00 -8.00 855.00 609.00 0.68 18.84 16.5 DBAG € 28.51 -0.39 34.50 19.82 1.06 7.84 6.3 Spirax-S♦ 3500 -45.00 3633 2548 1.73 26.51 87.6 FstQuant 921.00 -3.50 1512 581.50 0.96 13.16 7.8 Wkspace 975.00 -5.00 983.50 542.00 1.09 4.73 190.1 MngCnslt♦ 13.75 -1.00 29.50 13.75 6.19 7.90 305.2
BAE Sys 505.50 -7.50 549.00 410.00 4.02 21.69 5977.5 El Oro 55.00 - 78.00 40.00 6.73 -4.71 5.0 Tex 104.50 1.00 107.00 83.10 4.31 7.66 0.8 Fresnillo 724.00 -22.50 1037 630.50 - 76.71 1239.8 Real Estate Inv & Services MearsGp 427.50 -0.75 497.00 354.75 2.14 17.34 76.3
Chemring 222.75 -2.00 248.00 181.50 2.78 -318.21 76.2 Hargr Lans 1261 -24.00 1300 827.00 1.78 37.03 658.4 Trifast 117.75 -1.75 134.00 88.63 1.19 20.20 105.7 GemDmnd♦ 153.75 -1.50 223.00 135.00 - 10.04 222.8 Cap&Count♦ 409.40 -1.10 434.80 313.00 0.37 7.44 914.7 MenziesJ♦ 448.00 - 703.00 306.25 6.00 19.79 34.4
Cobham 296.50 -0.20 349.10 258.30 3.35 114.74 2717.0 HBM Hlth SFr 110.00 -1.00 113.50 80.50 - 3.40 24.1 Vitec 660.50 7.00 670.00 539.00 3.54 22.49 34.8 Harmony R 16.55 -0.53 38.50 16.49 - -5.52 1156.5 Cardiff♦ 1045 12.50 1090 950.00 1.24 4.53 1.5 MichaelPge♦ 554.50 -6.00 568.00 358.70 1.92 29.00 2674.9
Meggitt 502.00 -1.00 593.50 421.70 2.60 23.12 2209.4 HenderGp 283.20 -4.40 303.30 180.10 2.98 25.51 2547.4 Weir 1919 -56.00 2848 1574 2.24 12.51 706.1 Hochschild 102.00 -2.00 181.91 60.97 - -8.47 77.9 CLS 1980 -29.00 2023 1270 - 4.41 3.5 MITIE 309.50 -2.60 330.10 263.90 3.55 89.24 826.4
RollsRoyceX 972.50 -14.50 1094 777.00 2.30 -249.36 5260.6 ICAP 562.00 -1.00 573.00 338.70 3.91 32.72 898.3 Kenmr 4.02 0.01 17.05 2.18 - -1.73 1153.4 Daejan 5685 5.00 5995 4650 1.74 4.96 3.2 PayPoint 1070 46.00 1192 779.82 3.42 19.59 56.0
Indvardn SKr 165.30 -2.10 183.50 111.40 3.29 6.72 294.4
Industrial General Lonmin 139.50 -4.70 267.00 105.70 - -18.30 748.7 PremFarn♦ 191.40 -3.30 217.70 147.00 5.43 14.87 437.9
Senior 322.70 -1.50 361.70 248.90 1.63 21.42 344.3 DvlptSec 274.25 3.50 278.00 179.00 2.04 10.25 60.5
ICG 580.50 -15.50 611.00 361.70 3.50 16.29 1516.2 BritPoly 676.00 - 730.00 565.00 2.22 11.75 5.0 Petra 171.00 -5.20 220.87 150.00 - 20.68 760.3 Rentokil 152.50 0.50 153.20 109.80 1.56 21.94 3985.2
UltraElc 1876 -6.00 1914 1646 2.28 63.16 252.5 Grainger♦ 207.70 -0.80 226.90 167.80 1.20 24.08 843.0
IPF 493.20 -4.80 636.50 412.00 1.97 16.79 357.6 JardnMt $X 60.21 0.16 67.88 57.00 2.31 13.26 244.9 Petropvlsk 5.90 -0.28 61.50 4.21 - -0.10 9153.0 Ricardo 942.50 -3.50 967.50 597.70 1.61 25.65 290.1
HelclBar 420.00 -9.00 435.00 320.00 1.61 7.38 20.6
Automobiles & Parts Investec 578.50 -8.50 649.50 477.20 3.44 18.23 2263.7 Jard Str $X 32.40 0.07 38.10 31.98 0.79 10.88 312.8 PolymtIntl 533.00 -26.00 634.00 315.18 1.94 -15.83 398.3 HK Land $ 8.52 -0.16 8.80 6.46 2.08 15.33 2147.7 RbrtWlts♦ 415.00 -3.00 425.00 270.00 1.33 29.79 4.1
FordMtr $X 15.08 -0.12 18.12 13.26 3.60 18.77 13645.4 Jupiter 466.50 -1.10 472.70 313.70 2.74 17.17 735.6 Macfrlne 42.75 - 46.00 34.00 3.74 11.29 26.8 RndgldRs 4591 -161.00 5752.1 3638 0.86 30.25 615.6 RPS 230.00 -10.20 301.40 181.50 3.43 15.21 923.5
REXAM 554.00 1.50 592.50 424.60 3.42 15.43 1671.9 Lon&Assc♦ 39.25 2.25 50.00 35.48 0.32 -4.59 139.7
GKN 368.50 -3.50 397.60 281.10 2.20 36.03 4160.4 Liontrust 275.50 -5.38 306.25 208.00 1.09 24.38 220.7 RioTintoX 2850 -31.50 3530.5 2600 4.60 12.65 3833.7 MacauPrp 218.00 - 270.00 206.25 - 11.47 15.6 Shanks 112.50 1.00 113.28 84.50 3.07 -25.57 393.4
Man 178.20 -4.40 217.80 98.63 3.35 13.54 10549.8 RPC 627.50 -4.50 672.90 488.20 2.26 24.00 336.3 Troy Res A$ 0.37 -0.02 1.32 0.35 - -0.81 553.0 SIG 201.40 -3.10 212.20 143.40 1.90 36.08 931.3
Banks Smith DS 358.70 -0.30 383.50 231.82 2.89 20.07 1797.4 Mntview 12225 -50.00 12900 7481.95 1.68 13.86 0.1
NB GFRIF 97.00 -0.05 100.22 93.85 3.98 24.28 1581.3 VedantaRs 553.00 -32.00 1201 353.21 7.15 299.40 1536.6 Q'tainEst 110.00 -0.50 110.50 75.00 - 25.01 402.7 SpeedyHr 75.75 -0.25 80.50 50.75 0.84 81.98 145.9
ANZ A$X♦ 31.50 -0.42 37.25 30.47 8.31 11.70 6966.6 Smiths 1211 -4.00 1363 1006 3.32 21.49 1052.9
Paragon 443.00 0.10 461.50 313.70 2.03 13.63 501.9 RavenRuss 58.00 0.75 78.00 37.25 - -7.33 574.3 St Ives 181.00 2.00 225.00 156.68 3.95 51.97 84.5
BcoSant 481.75 -3.50 758.00 416.37 8.50 13.66 807.4
Providnt♦ 2948 -4.00 3268 1942 2.99 23.67 290.0 SmurfKap € 26.64 0.17 30.31 14.78 1.71 25.86 424.8 Oil & Gas TribalGrp 158.00 3.00 190.00 138.72 1.08 -19.17 42.0
BankAm $X♦ 16.75 -0.18 18.21 14.84 0.99 23.93 37983.3 Vesuvius 424.00 -5.10 530.00 388.80 3.60 11.55 212.3 Afren 2.85 -0.11 153.80 2.65 - -0.07 11428.3 RavenR Prf♦ 141.75 - 156.00 101.50 8.47 - 41.5
RathbnBr 2241 -36.00 2348 1774 2.23 29.75 98.9 RavenR Wrt 32.25 -0.25 51.89 25.00 - - 2.5 Vp 734.50 59.50 734.50 539.00 1.96 17.81 59.6
BnkGeorgia♦ 1840 -115.00 2604 1663 3.24 8.95 80.0 Aminex 2.10 - 3.17 0.75 - -9.63 4778.9
Record 34.75 -0.25 37.40 28.38 4.32 13.87 38.1 Industrial Transportation Safestre 280.00 -0.75 304.75 184.25 2.16 12.18 96.1 Watermn 72.00 - 76.00 50.00 1.39 54.96 7.8
BankIre € 0.34 0.00 0.39 0.07 - 13.34 41981.3 BGX 1101.5 -28.50 1420 780.55 1.84 -29.04 9036.9
S&U 2190 -14.50 2255.5 1700 2.60 14.20 1.7 BBA Aviat 322.70 -7.20 362.10 297.94 3.10 14.77 731.1 Savills 946.50 3.00 991.46 567.52 1.14 20.90 255.7 Wolseley 4058 -44.00 4242 2966 2.03 36.64 534.0
BkNvaS C$X 65.92 -0.81 74.93 60.75 4.12 11.27 1267.1 BPX♦ 440.15 -9.40 526.80 364.40 6.17 42.18 26387.6
Schroder 3341 -26.00 3441 2086 1.98 22.59 285.6 Braemar 510.00 4.75 545.00 390.00 5.10 55.61 10.5 SchroderRE 58.25 0.50 63.00 51.50 4.26 4.64 521.9
BarclaysX♦ 266.40 -4.80 273.40 201.75 2.44 -0.86 38019.3
..N/V 2516 -44.00 2629 1692 2.62 17.01 71.8 Cadogan 9.75 - 12.44 8.25 - -0.59 2.0 Tech - Hardware
CanImp C$X 94.63 -0.93 107.37 88.04 4.45 10.48 499.2 Clarkson♦ 2479 1.00 2638 1835 2.34 27.62 11.8 CairnEng 183.20 1.20 210.00 141.00 - -4.30 1344.0 Smart(J) 103.50 - 105.00 86.00 2.86 43.00 0.6 ARM Hldgs 1141 -4.00 1233 778.50 0.54 58.34 3645.2
SVG Cap 510.00 -5.00 535.00 226.00 - 12.73 148.3 Eurotunnl € 13.47 -0.30 14.57 8.62 1.18 120.57 826.1 StModwen 450.70 -1.70 492.10 324.59 0.92 8.74 179.0
HSBCX♦ 618.80 -6.50 674.57 550.67 5.54 12.97 21624.1 Cape♦ 248.25 -5.25 327.25 177.00 5.64 13.35 47.6 CSR 877.00 -6.00 891.50 506.00 1.04 24.80 915.5
TullettPre 400.90 -0.40 406.90 234.40 4.20 35.95 612.6 Fisher J 1308 4.00 1445 1003 1.58 16.51 9.2 UNITE Gp 599.00 -4.00 628.00 388.30 0.90 11.46 452.1
LlydsBkgX 87.50 -1.43 89.35 70.72 0.86 -2.30 162118.2
Tungsten 83.50 3.50 409.75 67.25 - -4.14 2096.7 DragnOil 679.00 -4.00 701.50 447.50 3.57 8.00 1149.8 Laird♦ 395.00 -14.50 413.30 259.45 3.08 21.24 1011.3
RylBkC C$X 79.60 -0.67 83.87 71.74 3.85 11.98 1093.3 Flybe Grp 56.50 -0.25 146.00 52.00 - -4.13 790.5 Endeav Int' $ 0.02 - 1.60 0.02 - 0.00 0.4 Urban&C♦ 257.00 -2.00 278.00 215.00 0.58 8.37 64.8 Pace♦ 414.00 -2.90 520.80 378.93 0.90 14.15 354.1
WlkrCrip 46.00 - 50.94 37.50 3.41 8.53 2.0 Goldenpt 118.63 - 380.00 113.80 - -0.64 0.5
RBSX 351.80 2.30 414.00 308.00 - -32.42 12217.5 EnQuest 52.00 -1.50 145.40 21.50 - -3.56 4063.6 Retailers SpirentCM 89.00 -1.75 111.23 65.95 2.65 41.47 245.8
StandChX 1044.5 -7.50 1346.44 557.50 5.29 15.42 4844.2 Food & Beverages OceanWil♦ 915.00 -5.00 1240 835.00 4.20 21.76 6.7 Exillon 110.00 0.25 175.57 105.00 - 5.32 28.9
RoyalMail 500.00 -26.00 532.50 388.00 4.00 15.38 8033.5 AA 418.00 -1.30 434.50 225.50 - 31.52 1267.0 Tech - Software & Services
..7.375%Pf 124.38 - 128.00 108.50 5.93 - 87.2 AngloEst 628.00 -9.50 715.00 539.00 0.51 12.63 1.6 ExxonMb $X♦ 83.97 -0.98 104.76 82.68 3.40 12.17 6171.7 AO World 166.00 -3.20 336.00 149.60 - -251.52 455.6
..8.25%Pf 138.25 - 141.00 124.50 5.97 - 54.2 AscBrFdX♦ 2950 -33.00 3293 2407 1.15 41.34 818.8 UK Mail 510.00 2.50 639.43 380.00 4.18 26.96 2.7 GenelEgy 520.00 -9.00 1048 452.75 - -7.18 486.1 Anite 99.50 -5.25 108.00 69.25 1.91 31.14 430.6
AshleyL 33.50 -1.50 36.00 24.50 5.97 13.32 217.2 AVEVA 1939 -13.00 2337 1183.9 1.42 29.59 148.9
TntoDom C$X 54.22 -0.68 58.20 49.67 3.64 12.90 1406.5 Barr(AG)♦ 607.50 -8.00 699.36 548.00 1.86 23.49 46.9 Insurance GeoPark $ 5.17 -0.21 11.00 3.60 - -8.81 6.2 Brown N 341.00 1.70 470.00 282.50 4.36 12.88 386.2
VirginMoney 446.20 5.20 448.00 278.00 - -1115.50 283.3 Britvic♦ 736.50 -13.00 788.00 600.72 2.84 18.30 596.5 GrnDnGas 361.25 -1.25 585.00 320.65 - -24.55 0.2 Computcnt♦ 741.00 -9.00 802.40 651.67 2.78 16.34 29.0
Admiral 1482 -10.00 1640 1175.33 3.25 14.41 475.5 Caffyns 610.00 -22.50 670.00 480.00 3.06 10.67 7.2 DRS Data 13.75 - 20.37 12.10 2.91 -2.81 9.0
Westpc A$X♦ 31.40 -0.48 40.07 31.29 8.53 13.07 9560.9 C&C €♦ 3.57 0.07 5.02 3.16 2.83 -14.74 239.4 GulfKeyst 35.50 -0.50 143.00 32.00 - -1.94 1337.0 Card Factor♦ 364.00 0.10 375.00 197.00 - 34.27 320.0
Amlin 491.60 -2.00 533.08 418.20 5.35 10.55 770.9 Elecdata 69.50 - 81.90 64.00 2.88 23.12 2.8
CarrsGroup 178.00 5.75 178.50 136.00 1.91 13.67 38.1 Aviva HellenPet € 4.71 -0.04 6.32 3.40 - -5.73 97.6 Dairy Fm $ 8.89 0.05 10.90 8.49 2.55 23.97 61.4
Basic Resource (Ex Mining) 520.50 -1.50 578.68 458.20 2.93 10.91 10042.2 MicroFoc 1336 -20.00 1372 808.00 2.27 24.76 192.3
Coca-Cola H 1415 -7.00 1497 1051 1.94 22.61 531.0 Beazley 302.20 -1.60 322.33 235.00 3.20 11.28 707.5 Hunting 615.00 -8.50 918.83 383.90 3.10 21.40 411.2 Debenhm♦ 93.75 -1.05 96.80 56.85 3.63 12.75 1270.7
Ferrexpo 76.75 -2.75 144.56 47.60 5.79 5.78 316.6 NCC Grp 215.75 3.75 234.50 169.80 1.62 25.73 196.7
Cranswk 1600 - 1622 1181.6 2.07 19.04 22.9 Brit Plc 280.50 0.50 309.08 216.00 2.23 8.06 31.9 ImpOil C$X 48.89 -0.43 57.96 44.08 1.08 12.52 203.4 Dignity♦ 2144 -11.00 2284 1291 0.93 -20.62 21.6
IntFerMet 2.90 -0.03 9.80 2.65 - -1.77 98.1 RM 150.00 - 174.00 120.00 2.51 11.52 0.2
Dairy Cr 543.00 16.00 544.00 367.39 4.04 23.64 762.6 Chesnar 319.50 -5.50 364.75 287.00 5.65 14.47 42.3 JKX 29.00 0.50 62.00 10.23 - -0.98 9.4 DixonsCar 477.10 2.30 490.80 319.20 1.10 56.13 10917.1
Mondi 1399 -27.00 1534 919.00 2.20 18.56 2517.7
Devro 313.75 -0.50 328.00 230.00 2.80 119.71 53.5 Lamprell 161.25 -1.75 178.00 93.50 - 8.52 368.4 Sage♦ 557.00 -5.50 584.00 346.70 2.18 30.49 4366.1
Vale BRLX 20.89 -0.46 33.25 17.17 12.59 -6.68 4772.3 DirectLine 345.40 -1.00 347.10 253.60 3.71 14.51 4190.8 Dunelm 926.50 -3.00 970.00 745.97 2.16 19.73 58.0 SDL♦ 418.25 -2.25 472.00 306.00 - 51.57 178.2
Glanbia € 17.60 0.10 18.20 10.75 0.62 33.77 31.3 Eccles prf♦ 140.25 - 146.00 122.00 6.15 - 53.8 Lukoil RUBX 2525 44.70 3297.7 1911.5 2.35 7.51 1217.6 Findel 227.50 0.50 290.00 188.41 - -17.20 0.5 Telecity 1090 -4.00 1130 652.50 1.06 37.13 1374.4
Chemicals Grncore♦ 336.90 -6.90 359.40 228.50 1.62 22.75 901.0 Hansard 98.50 -0.50 102.78 80.00 8.53 16.31 24.2 Nostrum♦ 530.00 -12.50 825.00 370.00 4.45 16.66 114.4 Halfords 484.50 -2.50 515.00 417.10 2.95 15.79 460.9
HiltonFd♦ 460.50 -9.50 525.00 342.25 2.80 18.44 2.6 OphirEgy 131.20 -4.20 260.60 112.70 - 21.55 1581.8 TriadGp 15.25 1.00 19.00 7.00 - 6.88 19.9
Alent♦ 374.70 -4.20 406.20 294.56 2.43 22.07 112.4 Hiscox 867.00 9.50 890.00 615.50 3.04 11.82 336.1 Inchcape♦ 857.50 -7.50 906.65 589.50 2.10 21.99 644.0
Bayer €X 128.85 -0.65 146.45 94.22 1.61 32.67 1709.4 Kerry € 66.75 -0.76 69.30 49.30 0.87 23.17 79.2 JardineL 1020 -8.00 1112 815.00 2.72 21.33 50.5 Petrofac 900.00 -19.00 1274 594.00 4.70 40.23 1581.2 JDSportsF 648.50 -1.50 659.50 355.94 1.05 18.44 176.2 Telecommunications
Carclo 150.75 -2.00 169.75 80.00 1.76 -5.33 26.6 Nestle SFrX 71.20 -0.40 77.00 64.15 2.80 17.00 6873.4 Lancashire 647.50 -5.00 703.45 506.00 1.44 8.45 553.6 PremOil 165.80 -3.20 356.10 119.60 3.25 -6.42 3623.0 Lookers♦ 166.00 2.00 172.00 117.50 1.61 14.13 298.3 BTX 442.50 -4.95 472.85 351.90 2.58 16.98 17091.1
Croda 2862 -50.00 3027 1965 2.27 23.60 320.8 PremFds 41.50 -1.50 62.50 26.13 - -1.92 1010.6 Leg&Gen 266.50 1.60 296.02 209.20 3.68 16.11 19870.3 RylDShlAX 1901.5 -36.50 2475.5 1901.5 6.94 12.08 7158.2 Marks&Sp♦ 578.50 -2.50 600.00 380.80 2.94 18.80 3808.2 Colt Grp 154.00 -2.00 165.00 113.10 - -62.99 142.2
Elemntis 304.30 -5.00 324.10 225.50 1.71 12.59 667.4 REA 315.00 - 488.85 293.00 2.57 12.18 10.8 NovaeGp 736.00 4.50 750.00 495.50 3.14 9.41 25.5 ..B♦ 1918 -34.00 2599 1915.5 6.70 12.19 12881.2 Morrison♦ 178.30 0.20 214.80 150.60 7.40 -5.46 11539.6 Inmarsat 1001 -5.00 1041.24 653.00 3.20 22.24 1171.4
Porvair♦ 342.00 2.00 342.00 237.53 0.88 24.14 16.9 SABMillX 3403.5 -30.50 3857 3105 1.90 24.55 2932.7 Old Mut 211.90 -3.20 241.60 163.80 3.99 16.95 10908.2 Schlmbrg $X♦ 90.45 -0.91 118.76 75.60 1.95 22.60 3416.8 MossBros♦ 110.00 0.25 123.00 77.50 5.82 28.93 55.0 KCOM Gp 97.25 1.50 102.41 78.50 5.02 13.25 173.6
Syngent SFrX 426.70 5.10 435.20 273.20 2.44 26.35 579.3 StckSpirit 198.00 -0.75 316.00 176.75 0.49 14.50 236.5 PermTSB 0.06 - 0.10 0.05 - -0.20 0.0 SEPLAT♦ 116.88 -0.75 270.00 97.50 3.46 4.14 5.4 Next 7380 -55.00 7625 6130 1.94 18.02 315.8 TalkTalk 408.80 0.90 415.10 261.00 2.94 76.00 1405.1
Synthomer♦■ 335.00 -14.70 359.50 176.64 1.97 25.33 585.2 Tate&Lyl 561.00 -5.00 744.50 551.50 5.07 14.39 2139.0 PhoenixGrp 851.00 -5.50 935.00 614.85 6.27 8.82 254.4 Soco Int♦ 181.00 -5.40 450.89 134.00 - 66.50 2704.4 Ocado 369.40 -1.90 452.40 216.80 - 310.94 876.7 TelePlus 811.50 19.50 1527.12 725.50 4.53 20.95 388.7
Victrex 2045 -47.00 2202.55 1536 2.21 20.67 151.4 TongtHu R 131.43 -0.80 174.93 123.83 2.84 11.55 134.5 PrudntlX 1609 -8.00 1761.5 1287 2.18 18.53 4740.6 TrnCan C$X 51.30 -1.52 63.86 49.30 3.89 20.82 701.9 Pendragn 39.00 0.50 41.50 27.00 1.54 11.40 158.5
Unilever 2872 -16.00 3087 2397 3.04 20.67 3024.2 RSA Ins 431.60 2.20 500.50 400.30 - -29.97 2677.3 Tullow 381.00 -14.70 891.00 278.10 3.36 -3.48 4702.2 Photo-Me 141.50 -0.50 155.26 107.85 2.79 20.52 883.0 Tobacco
Construction & Materials ..NV € 37.18 -0.61 42.98 28.81 3.19 19.66 16.0 Wood(J) 703.50 -17.00 825.00 517.60 2.17 11.83 886.0 Saga♦ 207.00 -5.90 216.00 143.75 - 24.35 450.9 BrAmTobX 3520 -15.50 3894 3303 4.12 21.13 3519.1
SagicFin 66.00 -0.50 75.50 55.00 4.08 5.57 2.0
Alumasc 143.00 -1.00 160.00 108.66 3.50 12.36 10.8 SignetJwl 8530 -10.00 9499 5950 0.58 26.05 1.4 ImpTobX 3269 7.00 3413 2474 3.92 16.37 2017.0
Health Care Equip & Services StJmsPl 915.00 1.50 998.00 637.00 2.02 25.45 1220.0 Pharmaceuticals & Biotech
BalfourB 247.40 -2.30 263.00 145.59 5.70 -5.64 1118.5 SuperGroup 1165 -16.00 1262 750.00 - 24.23 116.9
Bioquell♦ 149.00 -3.00 155.50 80.00 2.21 -62.29 7.3 Stan Life 478.40 -4.40 505.68 354.96 4.13 24.93 3366.8 BTG 707.50 9.50 835.87 578.50 - 64.94 582.5 Travel & Leisure
..CvPf 121.00 - 123.88 101.00 8.00 - 70.1 TescoX 208.65 -1.75 305.00 155.40 5.41 -2.97 30190.9
Boot(H) 230.00 -2.00 237.75 170.00 2.28 14.41 45.1 ConstMed 984.00 -4.50 1045 650.00 1.91 21.61 2.5 Media CathayIn 26.00 0.25 38.75 16.00 - -118.18 17.6 888 Hldg 168.75 -1.25 185.75 109.19 3.86 16.50 313.1
GNStre kr 139.60 -0.50 164.10 122.50 0.63 28.50 443.2 Dechra 993.50 7.00 1068 677.00 1.55 39.46 36.1 Thorntns 106.00 -1.00 127.00 62.00 - 16.22 286.5 AirPrtnr♦ 386.25 -3.63 500.00 245.00 5.35 14.05 22.1
ClarkeT 77.00 -1.50 84.01 37.50 3.38 -53.14 61.4 4imprint 1067 -3.00 1160 610.50 1.77 28.61 5.5 VertuMotor 64.25 0.75 65.75 50.50 1.32 13.45 2440.0
Costain 335.00 - 348.00 248.00 3.28 15.43 51.8 UDGHlthC♦ 530.00 1.00 551.50 315.20 1.38 14.99 709.7 Blmsbury 179.00 0.38 190.00 140.50 3.31 18.14 0.5 Genus 1475 -25.00 1532 1001 1.20 28.25 37.1 bwin.party 108.00 0.80 128.00 70.40 3.31 -12.36 2650.1
CRH 1816 -37.00 2478.5 1220 2.67 5.94 3285.8 Centaur 76.00 -1.00 83.50 55.75 3.51 -2.95 16.9 GlaxoSmhX 1411.5 -26.00 1645 1296.5 - - 10691.6 Support Services Cineworld 513.50 -2.50 523.00 298.40 1.99 23.43 204.3
House, Leisure & Pers Goods HikmaPhm 2056 -38.00 2617 1580 0.63 23.06 311.1 CompassX 1133 -9.00 1223.36 924.41 2.39 22.00 3239.1
GalfrdT 1700 -4.00 1714 1044 3.12 17.33 297.8 ChimeCm♦ 280.50 3.50 377.00 239.00 2.73 29.22 10.7 Acal 303.00 -0.50 418.00 180.00 2.31 257.43 99.1
AGARmst 105.25 1.50 164.75 78.44 - 730.90 680.9 Oxfd Bio 10.00 0.20 13.38 1.95 - -23.31 2205.1 EntInns 133.70 -0.40 142.80 96.85 - 22.39 543.7
Keller♦ 1073 3.00 1085 742.00 2.27 -254.69 36.4 Creston 127.00 - 131.95 102.62 3.07 10.62 13.6 Aggreko 1535 -27.00 1804 1388.75 1.79 18.63 875.9
BarrttDev 604.50 -1.50 610.00 323.50 1.70 16.01 5056.7 RichterG $♦ 16.65 0.21 19.31 12.20 1.16 27.31 0.0 FirstGrp 116.20 -2.00 140.60 88.65 - 24.03 1610.6
KierGp 1388 4.00 1886 1260 4.15 35.91 445.6 DlyMailA♦ 966.50 -11.50 984.00 699.00 2.11 13.15 830.6 APR Engy 381.00 13.25 820.00 146.00 2.78 -0.75 356.9
Bellway♦ 2368 -3.00 2407 1385 2.20 12.24 1035.3 ShireX 5465 -50.00 5755 3431.23 0.27 13.96 1189.8 Fuller A 1059 -23.50 1125 879.00 1.43 22.09 9.3
Kingsp € 20.38 -0.24 21.18 11.03 0.76 31.44 41.4 HaynesPb 130.50 - 197.88 110.00 5.75 15.07 1.9 AshtdGp 1142 -16.00 1231 815.50 1.07 20.05 1933.2
Berkeley 3127 -37.00 3198 2033 6.08 11.95 544.5 VecturGp 178.00 -2.00 183.00 113.25 - -101.37 212.7 Go-Ahead 2635 -47.00 2700 2118.84 3.21 17.01 77.8
LowBonr 74.00 0.75 90.60 44.25 3.65 21.51 123.0 ITE Grp 190.00 -3.75 248.30 125.00 3.89 15.18 84.7 AtknsWS 1471 -21.00 1504 1225 2.37 18.47 144.9
BovisHme 1114 -13.00 1136 717.43 1.93 14.25 284.0 GreeneKg 826.00 -6.00 891.00 712.00 3.44 19.70 971.3
Marshlls♦ 310.25 -3.00 316.00 151.00 1.77 31.37 456.4 ITV 268.40 -1.70 279.27 168.10 1.42 23.27 9561.9 Real Estate Babcock 1143 7.00 1252.3 924.50 2.03 25.32 2102.2
CrestNic 529.00 -12.50 549.00 291.98 2.00 13.68 567.3 IrishCtl €♦ 4.14 0.01 29.50 2.50 2.59 13.02 2.8
MorgSdl 837.50 15.00 875.00 570.00 3.22 20.13 16.5 JohnstnP 156.50 1.25 175.00 2.90 - -355.68 20.6 Berendsen 1049 -9.00 1161 895.50 2.74 20.00 221.3
GamesWk 495.00 -15.00 683.50 487.25 7.27 22.50 32.7 Harworth Gr 11.88 - 12.25 5.35 - 20.76 305.1 Ladbrokes 125.50 3.20 153.80 101.02 7.09 28.28 16518.6
Norcros 16.75 - 20.50 14.69 3.16 7.08 782.8 News Corp A $ 14.99 -0.23 18.41 14.28 - 34.52 1023.4 Brammer♦ 314.00 -7.75 509.00 265.00 3.31 35.21 244.3
Gleeson 412.00 3.50 431.00 322.35 1.46 12.88 12.3 REITs MandarO $ 1.56 0.02 1.95 1.52 4.18 16.39 298.6
StGobn € 42.45 0.04 45.00 29.51 1.54 23.61 3300.6 NewsCpB $ 14.71 -0.23 17.82 14.09 - 33.87 333.3 Bunzl♦ 1886 -19.00 1969 1517 1.77 29.58 461.3
Headlam♦ 490.00 2.50 494.50 390.00 3.23 17.22 130.4 Assura 59.25 - 62.25 41.50 2.87 11.37 479.6 Marstons♦ 165.90 -1.50 174.40 134.50 4.04 -35.13 1032.0
Tyman 317.00 -6.50 342.00 228.25 2.05 57.66 25.3 Pearson 1287 -16.00 1517.42 1082 3.81 43.04 1801.9 Capita 1234 -7.00 1285 1000.5 2.22 34.78 2165.5
McBride 98.00 -0.25 105.75 74.00 - -10.50 21.1 BigYellw 652.00 10.00 710.00 451.40 2.52 15.30 204.0 Natl Exp 312.30 -6.40 324.80 213.40 3.23 27.06 493.1
Persimn Quarto♦ 195.00 - 213.35 136.66 4.29 6.72 4.0 Carillion♦ 327.20 -4.80 386.60 294.03 5.38 25.74 937.1
Electronic & Electrical Equip 1945 -25.00 1995 1176 - 15.98 1439.0 BritLand 836.00 7.00 891.50 649.00 3.34 5.20 4440.8 Comnsis 52.00 2.25 70.00 47.00 3.60 -6.78 168.5 PPHE Htl 597.50 - 605.00 360.00 2.73 7.72 10.5
Philips €X 24.56 -0.01 28.00 20.69 - 120.19 4294.4 Reed ElsX 1075 -13.00 1199 906.50 2.32 25.29 3613.2
Dialight 745.00 2.00 992.00 605.00 1.97 25.51 12.7 Cap&Reg 57.25 -0.75 60.25 42.25 1.31 4.40 1248.1 ConnectGp 160.00 - 206.00 128.02 5.87 12.55 84.6 Rank Gp 215.80 2.70 216.00 151.90 2.09 17.86 846.7
PZCusns 358.50 -0.90 392.10 289.76 2.16 16.79 132.4 ReedElsNV € 21.47 -0.24 24.17 16.08 2.58 24.31 2145.7
e2v Tech 258.50 -2.25 268.00 145.44 1.76 21.08 42.4 Countrywd 584.50 -9.00 608.00 404.30 1.88 19.48 201.0 DCC♦ 5185 - 5320 3050 1.48 34.06 180.3 Restaurt 690.00 -5.50 748.70 551.50 2.15 23.06 343.1
ReckittBX 5774 -41.00 6130 4895 2.37 25.37 1147.4 STV Grp 417.50 -3.50 425.00 322.00 0.96 11.10 2.2
Halma 772.50 -2.00 785.50 552.50 1.45 26.26 460.2 DrwntLdn♦ 3490 13.00 3710 2530 1.07 4.88 218.4 DeLaRue 510.00 -7.00 875.00 467.40 8.60 13.18 566.0 SpiritPub 114.30 -0.80 121.80 68.75 1.94 7.95 4727.9
Redrow 437.40 -4.40 444.07 224.00 0.69 11.40 330.6 ThmReut C$X♦ 49.51 -0.44 53.00 37.24 3.45 15.99 208.5
MorganAd 344.20 -1.00 365.50 258.10 3.08 126.03 455.4 Gt Portld♦ 819.00 2.00 877.00 600.04 1.09 5.56 710.7 Diploma♦ 812.50 -17.00 916.50 603.84 2.09 24.81 45.6 Sportech 66.50 0.25 93.00 47.00 - -6.39 6.6
TaylorWm■ 188.50 -0.80 192.90 101.70 0.38 16.39 18574.6 UTV Med♦ 159.00 2.50 227.75 149.00 4.45 11.06 14.8
OxfordIn 1074 -6.00 1452.92 671.58 1.15 91.77 31.5 Green Reit € 1.57 -0.01 1.70 1.20 - - 13.2 Elctrcmp 239.30 0.90 285.30 197.20 5.14 13.15 990.5 Stagech 406.60 -4.50 437.90 331.60 2.34 17.87 2979.0
TedBaker♦ 2776 -53.00 2986 1651 1.28 34.26 14.5 WPPX♦ 1505 -54.00 1616 1091 2.34 18.69 5729.6
Renishaw 2478 -17.00 2672.9 1470 1.66 16.18 33.8 Hammersn 650.50 0.50 708.00 537.00 3.01 6.80 2248.1 EnergyAst 570.00 5.00 570.00 325.00 - 29.00 7.5 ThomasCook 143.70 0.60 162.20 99.40 - -37.09 5597.1
Spectris♦ 2244 -46.00 2420 1606 1.96 19.78 248.4 Industrial Engineering Mining Hansteen 121.00 -2.30 128.95 98.25 4.05 7.14 1431.8 Essentra 1004 -8.00 1069 624.50 1.62 34.19 318.2 TUI 1184 -8.00 1294.78 1004.81 - 81.48 1152.4
TT Elect 139.75 -0.75 211.50 96.00 3.94 -21.17 105.2 Acacia 300.30 -10.20 318.90 191.70 0.77 23.68 422.0 HIBERNIA 1.28 -0.02 1.32 1.03 - - 1298.6 Experian 1224 -9.00 1264 909.95 1.88 23.97 2723.2 Whitbrd♦ 5045 -25.00 5475 3767 1.43 24.88 458.0
Bodycote 751.00 -7.50 797.59 542.50 1.82 17.99 135.5
XP Power 1603 1.00 1695.92 1340 3.62 15.86 0.8 AngloAmer 1005 -43.00 1662 923.00 5.45 -8.01 8847.0 Highcrft♦ 930.00 - 950.00 780.00 3.71 12.79 2.0 G4S♦ 293.80 -3.20 309.60 239.70 3.05 50.66 3646.5 Willim H♦ 423.10 1.10 427.10 321.70 2.81 18.08 4230.6
Castings 387.50 -2.50 525.00 360.00 3.34 10.26 65.9
AngloPacif 93.75 -1.50 193.75 74.75 10.88 -2.23 206.1 INTU 322.50 -0.80 376.50 300.70 4.53 7.21 4528.0 Grafton 831.00 -3.00 868.00 531.00 1.11 24.45 342.9
Financial General Fenner 225.00 -10.00 374.50 180.50 5.33 1092.23 962.0
LandSecs 1273 1.00 1363 988.50 2.44 5.75 2302.5 Utilities
Goodwin 2715 -8.00 4076.8 2120 1.56 10.88 0.5 AnGoldA R 108.00 -5.34 200.05 88.36 - -34.81 1280.3 HarvyNah 105.00 3.50 119.75 66.32 3.18 14.58 25.0
3i 563.50 -6.00 571.50 343.61 2.84 7.72 2235.0 LondonMtrc 170.00 1.10 173.20 132.30 4.12 7.05 1063.0 Centrica♦ 269.30 -5.90 337.93 234.40 6.38 -13.36 17500.7
Hill&Sm♦ 700.00 -3.00 720.00 495.00 2.34 20.20 15.3 Antofagasta 741.00 -19.00 861.50 620.00 8.43 24.77 3027.4 Hays 164.70 -0.30 170.10 108.15 1.60 24.48 4089.1
AberAsM♦ 432.10 -7.10 509.64 383.40 4.17 19.04 3476.6
..5%Pf♦ 0.60 - 0.60 0.60833.33 - - McKaySec♦ 247.00 -10.50 260.00 210.35 3.48 6.36 16.2 DeeVally 1370 - 1585 1135 4.73 15.31 1.3
Ashmore 322.30 -5.50 379.40 249.00 5.10 15.42 2895.0 IMI 1250 -12.00 1613 1108 2.89 18.22 519.0 Homesve 427.20 -4.60 440.00 293.80 2.65 50.84 449.2 Drax 378.80 -10.20 741.00 347.40 3.59 11.99 1804.4
MelroseInd 269.90 -4.80 314.78 252.54 3.11 32.13 2776.4 AquarsPl 8.20 -0.36 26.40 8.11 - -3.49 2206.4 MucklGp♦ 485.00 -5.00 510.00 417.00 4.17 5.65 2.9 HowdenJny♦ 517.00 1.00 522.50 287.50 1.24 22.48 822.2
BrewDlph♦ 320.80 -9.90 361.00 236.80 3.09 48.75 368.4 PrimyHth 398.50 0.25 410.00 324.00 4.89 13.41 120.0 Natl GridX♦ 869.00 -46.50 965.00 827.50 5.02 15.22 12746.5
Renold 76.25 -0.25 79.66 49.00 - -23.00 234.4 AsiaResM# 36.75 - 205.00 3.61 - -1.55 - Intserve 628.00 -3.00 878.50 487.20 3.54 19.81 150.7
Canaccord 330.00 2.50 729.00 300.00 3.22 -43.15 1.1 Redefine♦ 53.00 -0.75 59.90 48.00 6.04 5.24 1670.1 Pennon 834.50 -4.50 925.00 745.30 3.63 28.76 771.1
Rotork 252.80 -2.70 289.00 214.60 1.95 21.33 2701.8 Barrick C$ 14.55 -0.39 21.14 11.67 1.77 -4.47 869.2 Intertek♦ 2560 -10.00 2927.58 2141 1.84 23.54 315.1
CtyLonInv 350.00 -6.50 365.00 251.25 7.37 16.42 20.3 SEGRO 416.30 -2.00 454.80 330.90 3.56 4.52 1143.2 UtdUtils 971.00 -13.00 1045 784.00 3.71 18.71 2381.9
Severfd 70.75 0.13 72.05 52.60 - 160.43 339.9 BHP Bltn 1323.5 -43.50 2102.53 1247.5 5.19 8.73 9396.5 Latchways 790.00 5.00 1156 705.01 5.01 19.90 3.3
CloseBrs 1626 -16.00 1857.39 1217 3.01 14.90 259.4 Shaftbry 873.50 2.00 907.00 632.17 1.50 4.85 594.1
BisichMg 92.50 - 113.00 60.15 3.24 9.04 1.2

AIM
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence PolarCap 414.00 -0.75 531.00 351.00 6.04 14.37 49.3 Insurance EuropaOil 8.75 -0.38 10.75 4.65 - -12.43 321.7 Lok'nStor♦ 284.00 - 295.00 199.17 2.46 120.70 4.2 Utilityws♦ 279.50 2.75 319.75 192.34 1.43 19.49 310.0
Cohort 274.00 2.50 285.00 192.00 1.59 20.55 42.3 Share♦ 36.50 - 46.00 29.44 1.42 80.75 9.7 Gable 28.25 1.25 90.00 25.04 - -7.91 856.5 FalkldO&G 30.25 0.25 45.00 16.75 - -77.76 623.0 LXB Retail 91.75 -0.25 149.00 88.00 - - 60.0
ShoreCap 415.00 - 431.50 405.00 2.17 19.97 1.0 FaroePet 85.00 1.25 132.83 58.00 - -3.75 292.3 MirLand 53.50 - 245.00 50.00 - -0.95 71.5
Tech - Hardware
Helios♦ 162.50 - 170.00 120.00 0.92 13.28 5.6
Banks STM Group 43.50 - 55.90 16.10 - 26.17 1.0 GETECH 54.25 - 71.70 32.00 4.06 8.22 7.1 NewRiver 323.00 - 326.00 271.00 2.63 17.47 165.4 AminoTech 142.50 4.50 146.00 75.24 2.53 18.70 174.1
BCB Hldgs 9.00 - 14.17 8.00 - -1.52 0.2 WH Ireland 102.50 - 130.00 79.00 1.46 76.26 0.0 Media GlobalPet 2.00 - 5.00 1.75 - -0.43 75.0 Palace Cap 392.50 2.50 397.00 257.00 - 2.75 52.4 IQE 23.00 0.25 23.75 12.08 - 95.44 1656.0
STB 2770 -27.00 3024 2245 2.27 23.05 0.6 Avesco 143.00 1.00 148.00 94.00 3.85 -11.17 29.3 Gulfsands 12.75 1.13 67.62 11.00 - -1.06 359.0 PnthrSec 337.50 - 357.00 295.00 3.56 12.93 3.5 Tech - Software & Services
Food & Beverages Cello Gp 95.00 - 100.00 81.00 2.54 36.08 1.0 Indus Gas 121.00 -2.50 450.00 79.25 - 23.05 12.4 PSPI 29.00 - 30.00 21.00 - -5.37 7.1
Basic Resource (Ex Mining) FinsbryFd 88.00 -3.50 93.50 53.25 1.14 11.80 279.2 M&Csaatc 330.25 7.25 395.00 235.00 1.71 -1393.46 91.3
Blinkx 34.00 -1.25 70.00 23.25 - -28.91 1447.8
Infrastrata 4.25 - 9.50 2.75 - -3.71 60.0 SiriusRE € 0.48 -0.02 0.51 0.28 0.67 7.33 218.1 BondInt 142.00 - 148.25 83.00 1.55 27.49 0.3
CropperJ 440.50 - 490.00 355.00 1.79 22.04 2.9 Nichols 1238 - 1243.64 834.56 1.65 32.29 5.4 MissionMk 45.00 - 56.90 37.00 2.22 8.90 17.2 Iofina 30.00 -0.50 65.75 26.13 - -8.96 37.2 SumGermny €♦ 0.93 - 0.99 0.50 2.02 3.69 34.7 Brady 99.00 - 104.00 64.00 1.72 177.42 80.2
PureCircle 417.50 -2.50 635.00 410.00 - 325.16 18.7 Next15Cm 192.00 0.50 198.00 110.00 1.44 124.19 5.7
Chemicals Ithaca Engy 50.00 -0.75 153.75 26.25 - -3.65 1045.5 TaliesinPr 2460 35.00 2495 1750 - 10.07 3.0 Datatec 342.50 -2.50 362.95 261.25 3.28 21.12 4.7
RealGdFd 50.50 - 53.00 23.00 - -6.31 129.3 YouGov 110.50 - 133.00 98.50 0.72 198.74 8.6 KBC Adv 117.50 -2.00 139.00 77.00 0.85 21.23 88.9 Winkworth♦ 175.00 3.00 180.00 115.00 3.37 14.83 4.8
Scapa 199.00 -4.50 210.00 118.50 0.50 -51.18 732.3 DDD 1.88 - 8.00 1.25 - -1.95 24.2
Ukrproduct 6.25 1.03 9.00 4.41 - -0.86 50.0 Max# 0.16 - 2.26 0.08 - -0.08 -
Construction & Materials Wynnstay 572.50 7.50 628.00 474.52 1.68 16.53 6.2 Mining Retailers Eckoh 43.50 -0.25 48.50 33.00 0.72 102.59 84.1
NewWldO&G# 0.26 -0.02 0.95 0.06 - -0.71 114813.2 EgSoltns 75.50 - 84.00 50.35 - 21.44 1.0
Abbey 885.00 - 927.30 800.00 0.97 9.13 0.5 AMC 22.88 1.13 25.63 2.50 - -23.53 6990.2 ASOS 3853 15.00 4583 1742 - 88.58 284.6
Health Care Equip & Services PetrelRes 3.13 - 11.81 2.75 - -7.35 1.0 Iomart 239.50 -2.00 288.21 159.93 0.73 29.66 42.2
AccsysTch 75.50 - 81.50 0.92 - -7.44 11.8 BeowMin 1.75 -0.08 4.55 1.15 - -1.50 2180.4 Koovs 74.00 1.50 171.00 60.00 - - 0.9
Advnc Med 149.00 -0.50 179.30 106.85 0.42 24.50 81.4 Petroceltic 119.25 1.25 224.00 98.50 - -5.99 11.8 K3BusTc 260.50 1.00 263.00 203.59 0.48 28.91 9.4
Aukett 7.75 - 9.50 5.76 2.58 11.92 29.7 BotswanaD 1.15 - 4.15 0.87 - -2.46 144.2 Majestic 427.50 -15.50 470.00 280.00 3.85 16.87 276.1
AVO 9.13 -0.38 16.90 2.40 - -12.17 7694.2 PetroNeft 4.80 - 6.79 3.60 - -42.48 36.5 Monitise 13.00 0.25 68.75 9.53 - -2.58 9899.0
CentAsiaM♦ 184.00 -1.00 198.00 135.16 5.70 5.20 23.3 StanlGib 251.00 1.50 329.00 215.00 2.69 22.29 43.0
Plexus 218.75 -4.25 325.00 165.00 0.50 35.21 16.7
Electronic & Electrical Equip CareTech 241.50 0.50 268.00 190.00 2.15 10.13 103.6 Connema 1.88 0.25 3.81 0.25 - -2.81 25.1 OMG 43.50 -1.50 49.00 25.00 0.92 164.15 189.6
ImmunDiag 282.50 -2.50 540.00 266.00 3.01 14.91 3.5 PresidentEn 13.75 -1.38 39.48 10.50 - 6.12 850.7 Support Services Progility 5.50 0.50 11.49 4.00 - 5.83 149.8
CeresPow 9.30 -0.08 11.75 6.50 - -6.76 20.2 C'royG&NR 0.80 -0.03 1.60 0.50 - -8.70 921.3
SphereMed 17.25 - 31.00 15.50 - -2.08 30.4 Rockhop 76.50 -1.50 100.25 51.00 - -14.96 746.2 AndSyks♦ 327.50 - 385.00 260.00 7.27 14.86 6.2 Pub Tech 145.00 -2.50 287.00 125.50 - -3.39 38.8
Densitrn 8.75 - 8.88 3.50 - 38.04 43.9 GrekaDrill 7.93 -0.07 16.80 7.20 - -35.88 2107.4
Tristel 93.50 - 100.00 61.00 1.73 23.31 20.1 Sound Oil 20.88 -0.13 26.73 8.75 - -15.27 2258.2 Augean♦ 52.00 -0.25 56.75 37.65 0.67 11.53 13.2 SciSys 58.00 -24.50 96.75 38.50 2.59 7.99 436.1
ElektronT 7.00 - 7.56 3.25 - -1.97 9.0 Herencia 0.18 -0.02 0.55 0.16 - -2.20 15468.2
TowerRes 0.20 - 3.42 0.09 - -0.19 3799.0 Begbies 44.13 0.13 55.00 40.60 5.14 17.25 79.6 WANdisco 257.50 2.50 614.24 197.00 - -2.52 22.3
FlowGp 27.25 -0.25 50.00 23.25 - -6.88 315.7 House, Leisure & Pers Goods HighldGld 51.50 -1.00 74.54 17.73 10.29 -10.47 407.6
TrinityE 15.75 0.75 109.00 13.00 - -0.74 48.2 Christie♦ 129.00 -2.00 162.00 104.00 1.36 14.35 0.5
LPA 82.00 -0.50 119.50 60.00 1.77 35.53 5.0 KarelianDd 1.08 - 2.37 0.80 - -15.36 94.2 Telecommunications
Airea 16.00 - 16.42 10.25 3.75 10.43 1.5 UnJackOil 0.23 - 0.48 0.14 - -5.63 4022.0 Empres♦ 65.50 - 69.00 38.13 0.53 8.70 60.0
ThorpeFW 169.50 - 180.00 120.00 1.92 18.76 8.8 KEFI Min 0.90 0.05 1.80 0.81 - -2.23 2329.2
Churchll 587.50 - 630.00 425.00 2.52 19.10 9.1 VictorOil 69.50 0.50 89.05 1.03 - -2.01 355.1 Hargreaves 389.50 0.25 815.00 370.00 6.55 4.14 84.8 AltNetwks 537.00 -4.00 545.00 415.00 2.70 28.99 20.8
Zytronic 308.50 - 319.00 197.00 3.24 15.09 11.0 OracleC 1.85 - 2.00 0.25 - -8.98 2.0
gamingrealm 32.25 -0.75 41.70 20.00 - -6.90 22.4 VolgaGas♦ 62.50 - 143.00 55.00 3.85 6.15 0.5 Hydrogen 58.50 -1.00 95.00 48.25 7.86 -139.29 13.9 AvantiCom 225.00 -2.75 325.00 162.75 - -4.02 77.1
RamblMtls 12.50 0.25 27.40 9.00 - 143.68 157.8
Financial General HavelckE 17.50 - 25.00 13.00 - -1.25 10.0
ShantaGold 6.88 -0.25 15.00 6.50 - 5.67 509.8 Pharmaceuticals & Biotech Impellam 770.00 - 850.00 430.00 1.72 12.92 3.2 Peoples Op 141.00 - 147.60 122.50 - -93.63 18.2
Ambrian 9.75 - 12.50 5.25 - 4.32 11.1 Mulberry 908.75 -1.50 969.00 562.50 0.55 177.08 0.8 ISG 174.00 8.00 356.00 140.00 5.43 -6.35 366.4
Portmern 945.00 - 960.00 736.25 2.59 16.49 3.5
SierraRut 29.50 - 53.00 17.00 - 112.17 18.9 Abcam 536.00 -2.00 548.50 270.88 1.45 30.51 212.0 Travel & Leisure
Arbuthnot 1550 35.00 1608.58 1000.00 1.68 27.77 1.9 Sirius Min 20.75 -0.25 25.25 6.40 - -406.86 6611.6 JhnsnSrv 85.75 -2.00 88.50 55.00 1.53 29.57 2266.0
SinclairW 17.50 - 73.80 16.02 8.57 0.97 0.7 AllcePharm 39.50 - 45.00 31.65 2.37 12.51 93.0 CastleStIn 27.00 -0.50 28.40 17.00 11.11 - 6.9
Aurora 9.38 - 22.01 8.00 - -0.54 6.3 SolGold 2.78 -0.08 10.00 2.01 - -5.27 1660.1 JourneyGp 145.00 -1.00 155.22 113.00 1.98 12.56 0.2
TelfordHms 490.50 - 495.00 245.50 1.79 18.08 163.2 Epistem 282.50 - 339.00 220.00 - -9.44 0.9 Celtic 76.50 - 78.00 72.00 - -19.91 0.4
BP Marsh 152.50 -2.00 156.75 116.75 1.80 10.81 54.0 Stratex 1.45 -0.08 4.00 1.00 - -2.78 9361.9 LonSec 2325 - 2500 2070 2.67 22.49 0.0
WalkerGb 201.50 - 215.00 151.05 0.95 24.35 21.2 e-Thera 40.00 - 49.40 24.25 - -13.59 7.7 ..6%CvPf 62.50 - 75.00 50.00 5.18 - 0.5
BrooksMac 1783 -24.50 1816 1300 1.46 28.47 5.6 Xtract Res 0.42 0.01 0.49 0.06 - -9.13 237930.6 Matchtech♦ 542.50 - 615.00 495.00 3.69 16.92 1.4
GW Phrms 665.50 10.50 697.00 299.11 - -88.01 309.2 ..Cv Pf 135.00 - 150.00 120.00 - - 0.8
Camellia 9550 50.00 11300 8450 1.31 93.02 2.9 Industrial Engineering ZincOx 15.25 - 16.00 6.00 - -1.13 38.8 NewmkSec 3.13 -0.10 3.27 1.60 2.40 6.65 485.8
HtchChMd 1815 - 2020 815.00 - 343.42 33.9 Dalata 269.00 - 277.00 111.15 - 95.36 3.9
CaptlMgt 123.50 - 225.00 103.00 - 3.06 0.0 NormanBr 19.00 - 29.50 17.00 - -1.70 0.0
600 Grp 18.25 - 23.70 14.60 - 4.87 55.7 ImmuPhar 49.50 - 67.00 41.00 - -14.41 10.0 Dart 415.00 -2.00 426.00 177.75 0.68 18.88 188.0
Charlemgn 13.50 - 19.50 8.70 7.13 41.54 16.6 Oil & Gas NWF 137.50 - 163.00 120.00 3.71 14.10 82.9
Molins 94.50 3.00 180.00 74.50 5.82 -61.40 33.2 ReNeuron 5.88 0.25 6.10 2.75 - -13.06 1526.5 GoalsSocc♦ 211.50 - 242.00 206.75 0.87 23.79 1.3
Fairpoint♦ 131.00 - 149.00 105.66 4.69 20.06 15.6 AlkneEng♦ 22.50 - 44.50 19.50 0.89 10.07 8.0 Optimal Pay 270.00 -6.50 575.00 255.25 - 22.45 1510.2
MS Intl 141.50 - 217.00 116.00 5.77 19.12 4.0 Sareum 0.27 - 0.68 0.25 - -4.57 8281.3 MinoanGp 11.25 - 17.00 7.25 - -18.32 1601.1
ImpaxGp♦ 48.00 - 59.00 44.50 2.92 15.11 52.0 AmeriRes 34.50 -2.25 67.25 19.10 - 21.11 1499.6 PennaCns 147.50 -1.50 155.00 114.00 1.81 89.72 6.6
Pres Tech 195.00 -75.00 790.00 185.00 4.10 6.98 715.5 SinclairIS 41.50 - 45.33 23.30 - -15.91 564.8 PeelHtls 101.00 0.50 110.00 70.00 - 21.62 13.5
Leeds 35.50 - 43.79 30.00 - 8.69 0.8 AndesEnrg 32.13 0.25 51.35 16.50 - -23.71 22.6 Petards 11.13 - 15.99 8.50 - 10.03 12.8
TP Group 5.75 - 5.96 5.50 - - 575.3 Vernalis 69.50 -0.25 71.84 30.25 - -24.07 1325.6
MattioliWds 514.00 - 522.00 414.00 1.77 23.02 0.0 BahamasP 2.24 0.29 4.70 1.50 - -10.04 1453.8 RedhallGp 11.50 0.25 38.00 9.00 - -0.80 104.5 Utilities
Miton 29.75 - 44.00 18.50 1.82 -9.10 37.9 Industrial General BorSthnPet 5.50 -0.33 14.50 3.90 - -10.68 240.3 Real Estate Renew♦ 325.50 -3.00 329.95 220.00 1.54 18.86 54.0 ModernWtr 13.75 - 35.00 13.00 - -0.62 14.5
MAB 229.13 1.63 233.25 160.00 - 23.90 3.1 Powerflte♦ 66.50 -2.00 70.00 35.00 1.58 41.36 110.2 Circle Oil 10.25 0.13 28.70 8.75 - 4.20 346.0 Conygar 180.50 - 195.00 160.00 0.97 9.15 88.0 Restore 281.00 - 289.00 173.33 0.75 46.87 222.9 RenEnGen 57.38 - 71.00 57.00 3.83 -40.09 1.2
Numis♦ 270.00 2.50 299.75 196.09 3.89 20.50 11.2 RM2 68.50 -1.00 82.00 46.00 - -5.32 931.4 ClontarfEn 0.48 -0.05 1.50 0.30 - -5.16 541.1 FltchKng 58.00 - 65.00 37.68 5.17 8.07 3.3 SafeCharge 294.50 - 297.00 167.00 0.63 44.27 7.0 Rurelec 3.50 - 8.50 3.00 - -0.47 105.2
Park Grp 56.75 4.75 64.98 47.00 4.05 13.73 102.1 Symphny 8.88 - 11.25 6.50 - -37.93 4.3 Egdon Res 11.00 -0.25 30.50 6.24 - -7.05 98.0 InlandHms 70.75 - 73.50 43.00 0.85 22.37 315.9 Servoca 20.50 0.25 26.03 10.50 - 21.20 17.1 SeaEnergy 12.25 -1.50 39.98 12.10 - -2.72 1039.6
Plus500 371.50 1.50 781.00 198.00 6.65 6.50 1991.2 Enegi Oil 0.85 - 7.25 0.65 - -0.32 12.5 Synectics 195.00 - 435.00 105.00 2.82 -9.48 41.6

Investment Companies
Conventional (Ex Private Equity) 52 Week Dis(-) Edin Inv 691.50 -11.00 706.00 565.20 3.48 706.0 -2.1 JPM Inc&Gr 112.50 -1.50 115.85 98.50 1.96 119.6 -5.9 ScottMort 273.00 -2.20 283.40 199.70 1.06 267.8 1.9 AlbionVCT 65.50 - 68.65 63.00 7.63 67.9 -3.5 MMP 3.13 - 5.00 3.00 - - -
Price +/-Chg High Low Yld NAV or Pm Edin WWd 478.00 0.50 479.95 332.25 0.42 514.0 -7.0 JPM Ind 508.00 -3.00 605.50 396.78 - 572.5 -11.3 ScottOrtll 854.00 -4.00 900.00 795.00 1.35 934.1 -8.6 Amati VCT 69.00 0.25 80.50 66.50 7.25 72.2 -4.4 Marwyn Val 230.00 2.50 232.92 184.56 - - -
3i Infra 170.20 -0.20 170.60 133.10 3.94 150.0 13.5 EP Global 258.50 - 262.10 207.04 1.04 257.0 0.6 JPM JpSm 256.75 - 261.75 184.00 - 271.2 -5.3 SecTstScot♦ 137.75 -3.00 149.00 129.86 3.48 148.6 -7.3 AmatiVCT2 106.00 0.75 120.98 101.79 6.37 111.0 -4.5 TerraCat 98.00 - 126.70 62.11 - - -
AbnAsianIn 194.25 -3.25 213.80 192.25 4.07 196.3 -1.0 Estabmt 182.50 - 188.00 163.00 2.58 223.7 -18.4 JPM Jap 287.25 -4.00 307.95 195.00 0.97 319.1 -10.0 Seneca I&G♦ 146.50 - 147.50 131.00 3.84 153.5 -4.6 ArtemisVCT♦■ 62.00 -6.00 70.52 59.23 6.45 72.1 -14.0
AbnAsian 863.00 -3.00 1014 800.04 1.16 967.7 -10.8 Euro Ast 1130 -5.00 1160 800.00 5.36 1122.1 0.7 JPM Mid 906.00 -10.25 918.50 669.10 1.99 1024.9 -11.6 Shires Inc 249.00 -3.00 261.75 216.26 4.82 264.5 -5.9 Baronsmd♦ 72.25 - 75.49 69.50 4.84 76.5 -5.6 ISDX
AbnJapInv 515.00 - 531.00 345.00 0.87 541.8 -4.9 EuroInvT 843.50 1.50 849.00 659.33 1.66 889.9 -5.2 JPM O'seas 1097 -1.00 1159 890.95 1.37 1184.3 -7.4 StdLf Eqt♦ 442.50 -3.75 448.00 362.50 3.16 461.0 -4.0 ..VCT 2♦ 93.63 - 97.50 91.00 4.81 100.5 -6.8
F&C Cp&I♦ 271.00 -2.00 277.00 231.75 3.65 271.1 0.0 JPMRussian 336.25 -9.25 485.00 223.25 4.55 385.5 -12.8 StdLf Sml 312.50 0.50 318.50 256.00 1.44 337.4 -7.4 ..VCT 3 98.63 - 105.01 94.00 15.72 104.6 -5.7 52 Week Vol
AbnLatAmIn 63.38 -0.88 85.68 57.50 6.71 67.5 -6.1
F&CGblSmlr 1022 2.00 1028.92 781.00 0.81 1002.4 2.0 JPMSnrSec♦ 91.75 -1.00 101.00 89.22 - 95.8 -4.2 StrategicEq 236.00 4.00 237.00 152.85 0.33 217.9 8.3 ..VCT 4 91.88 - 92.75 86.75 9.80 97.3 -5.6 Price +/-Chg High Low Yld P/E 000s
..Sub 0.33 - 5.50 0.25 - - -
F&CMgdG 155.00 -1.00 157.00 130.00 - 154.1 0.6 JPM Smlr 847.00 5.00 847.00 527.00 1.13 1002.5 -15.5 Temp Bar 1207 -13.00 1274 1101 3.16 1252.9 -3.7 ..VCT 5 76.13 - 77.14 72.00 7.88 81.7 -6.8 ArsenalFC 1587500 - 1590000 1400000 - 68.02 0.0
AbnNewDn 184.00 -1.00 205.23 170.00 1.96 206.2 -10.8
F&CMgdI 128.50 - 130.00 110.00 3.77 126.0 2.0 JPM US Sml 180.00 1.00 193.75 134.50 0.39 190.5 -5.5 TempEmerg 539.00 -5.00 626.64 511.50 1.35 611.8 -11.9 BSC VCT 86.00 - 92.20 84.00 6.40 104.8 -17.9 ShephdNm 1090 20.00 1260 1000.00 2.38 24.18 6.4
AbnNewThai♦ 416.00 -14.00 489.88 375.00 1.92 493.2 -15.7
FidAsian 259.00 -3.50 285.50 213.00 0.42 288.5 -10.2 JupDv&G 121.00 0.50 123.50 107.00 - 126.7 -4.5 TRIG 108.75 - 109.00 99.00 5.06 - - ..VCT2♦ 56.00 0.50 61.00 51.98 8.04 62.0 -9.7 Thwaites 122.50 - 132.00 112.50 3.64 -26.11 8.5
AbnSmlCo 221.00 -2.50 227.91 174.00 2.98 264.0 -16.3
Abn UK 325.00 -2.00 334.75 288.00 4.08 344.6 -5.7 FidChiSpS 170.50 -2.50 179.78 100.00 0.67 202.7 -15.9 JupEur 558.00 -1.50 562.00 371.25 0.63 548.5 1.7 ThreadUKSel 176.50 0.50 187.70 163.00 2.44 198.0 -10.9 Crown Place 29.75 - 30.50 29.00 8.40 28.2 5.5
Abf Gd Inc 200.00 - 200.00 138.25 3.59 233.4 -14.3 Fid Euro 184.60 -2.10 187.50 137.40 1.61 195.1 -5.4 JupGrn 149.75 - 151.00 133.20 0.73 154.5 -3.1 TREurGth 646.00 -6.50 661.00 438.00 1.01 723.3 -10.7 FrsightSol 102.50 1.00 112.02 95.00 5.85 107.5 -4.7
Abf Sml 1206 -18.00 1226 966.00 1.98 1324.1 -8.9 Fid Jap 87.75 0.50 88.00 64.00 - 95.3 -7.9 JupPrim♦ 326.00 -0.25 332.50 268.34 1.96 329.9 -1.2 TroyInc&G 72.88 -1.00 74.71 60.00 3.12 71.8 1.5 Inc&GthVCT♦ 89.50 -6.50 106.10 93.50 20.11 105.0 -14.8 Guide to FT Share Service
AcenciADbt 103.25 -0.75 114.00 103.00 3.79 113.5 -9.0 Fid Spec 1005 -9.00 1029 796.84 1.64 1061.0 -5.3 JupUSSmCo 676.75 -2.50 704.03 596.99 - 740.9 -8.7 UtilicoEmg♦ 194.75 0.50 206.09 178.50 3.13 215.5 -9.6 KingsAYVCT 18.50 - 19.50 17.25 5.41 19.7 -6.1
AdvDvpMk 464.50 -1.00 483.00 401.00 - 514.5 -9.7 FinsG&I 595.50 -6.00 609.36 464.25 1.96 591.2 0.7 KeystoneInv♦ 1876.5 -5.50 1900 1651.76 2.69 1944.9 -3.5 UtilicoInv♦ 116.00 - 133.80 103.00 6.47 173.1 -33.0 Maven I&G 63.25 - 67.50 59.50 7.11 67.2 -5.9
Alliance♦■ 506.50 -7.00 531.50 420.20 1.93 577.3 -12.3 FstPacfic H HK$ 7.04 -0.04 9.48 7.02 2.94 - - Law Deb 517.00 -15.00 545.50 465.10 2.94 502.8 2.8 ValAndInc 259.00 - 278.45 238.43 3.46 319.0 -18.8 MavenVCT2♦ 52.00 - 56.75 48.00 7.40 58.4 -11.0
AllianzTech 627.25 -2.75 640.43 463.07 - 647.3 -3.1 For & Col 450.20 -6.00 467.90 365.00 2.07 489.7 -8.1 LinTrain £ 491.50 0.50 498.00 331.00 1.38 404.9 21.4 Witan 821.50 -8.50 850.00 642.00 1.86 817.3 0.5 MavenVCT3♦ 75.25 - 79.00 70.00 5.65 82.2 -8.5 For queries about the London Share Service pages e-mail
AltAstsOps 40.00 -1.00 47.00 35.50 - 44.3 -9.7 Geiger 20.75 - 27.95 17.00 - 22.9 -9.4 Ln&StLaw 358.50 -0.50 410.50 330.80 3.85 384.2 -6.7 WitanPac♦ 260.00 -2.00 274.75 219.25 1.73 289.8 -10.3 MavenVCT4♦ 84.00 - 89.00 82.00 5.65 95.1 -11.7 ft.reader.enquiries@morningstar.com.
Art Alpha 271.00 -3.50 308.00 257.00 1.18 333.2 -18.7 GenEmer 534.00 -5.00 583.00 500.00 - 594.2 -10.1 Lowland 1410 -14.00 1473.5 1219 2.70 1481.1 -4.8 WorldTst 280.00 - 285.25 212.00 - 316.7 -11.6 MavenVCT5♦ 34.00 - 37.00 26.50 6.32 38.8 -12.4 All data is as of close of the previous business day. Company classifications
..Sub 20.75 - 45.25 18.10 5.78 - - GFIS 18.63 - 35.99 16.25 - 46.9 -60.3 M&GHighInc 168.00 -1.25 179.95 148.00 1.79 180.1 -6.7 WwideHlth 1977 -20.00 2011 1265.01 0.80 2067.4 -4.4 MobeusI&G 83.50 - 107.90 82.00 4.19 91.7 -8.9 are based on the ICB system used by FTSE (see www.icbenchmark.com). FTSE
AsianToRt 204.00 -1.00 224.00 171.25 1.59 219.4 -7.0 GRIT 15.00 - 65.00 11.00 - - - Majedie 279.75 -0.25 283.00 206.41 2.68 273.6 2.2 ..I&G 2VCT 104.50 - 119.50 101.08 1.20 118.2 -11.6 100 constituent stocks are shown in bold.
Conventional - Private Equity 52 Week Dis(-)
Aurora 156.25 - 169.00 144.00 2.43 185.9 -15.9 GoldenPros 26.63 - 42.59 25.25 - 31.4 -15.2 Man&Lon 250.00 1.75 270.85 219.00 2.99 298.6 -16.3 ..I&G 4VCT 99.00 - 116.00 97.00 6.06 109.2 -9.3 Closing prices are shown in pence unless otherwise indicated. Highs & lows
Price +/-Chg High Low Yld NAV or Pm
BG Japan 466.00 3.50 493.25 316.50 - 451.5 3.2 Hansa 907.50 7.50 989.50 836.50 1.82 1186.3 -23.5 MCGlobPort 188.50 -1.50 195.00 158.00 2.12 189.1 -0.3 Nthn 2 VCT 85.50 1.00 88.00 73.50 6.43 85.4 0.1 are based on intra-day trading over a rolling 52 week period. Price/earnings
..A 858.50 - 961.00 810.00 0.65 1186.3 -27.6 MCurPac 315.50 0.50 336.00 275.85 2.38 346.2 -8.9 AbnPvtEq 89.38 0.38 96.00 79.04 2.29 121.7 -26.6 Nthn 3 VCT 102.50 - 104.00 92.50 5.37 107.2 -4.4
BG Shin 380.50 0.50 407.00 282.50 - 379.4 0.3 ratios (PER) are based on latest annual reports and accounts and are updated
Hen Div♦ 92.75 -0.25 95.50 89.50 5.44 89.1 4.1 MercantIT 1701 -21.00 1730 1316.55 2.35 1924.2 -11.6 Altamir € 11.12 -0.03 11.99 9.43 - 16.1 -30.9 NthnVent 84.50 - 84.90 75.00 7.10 88.6 -4.6
BSRT 26.00 - 43.00 24.00 - 44.6 -41.7 with interim figures. PER is calculated using the company’s diluted earnings
HenEuroF♦ 1119 7.00 1148.5 816.47 2.10 1094.0 2.3 MrchTst 486.00 -7.50 519.00 422.18 4.88 507.2 -4.2 Dun Ent 334.50 -9.50 434.75 329.81 4.93 500.0 -33.1 ProVenGI 78.25 - 81.00 76.00 8.31 85.5 -8.5
Bankers 660.00 -8.00 674.50 506.00 2.21 666.8 -1.0 from continuing operations. Yields are based on closing price and on dividends
HenEuro 920.00 1.75 957.00 678.25 1.90 914.1 0.6 Mid Wynd 343.00 - 352.50 260.07 1.11 336.4 2.0 Electra♦ 3223 -37.00 3324 2338 - 3512.3 -8.2 ProVenVCT 92.63 - 96.99 89.50 7.56 99.7 -7.1
BrngEmEu 538.50 -14.75 711.00 432.00 3.53 624.9 -13.8 paid in the last financial year and updated with interim figures. Yields are
HenFarEs 341.00 -4.75 362.00 308.38 5.43 333.6 2.2 MitonWw 163.25 - 164.65 149.00 - 181.3 -10.0 ElectraPrf 149.25 - 151.00 144.25 - 143.4 4.1 UnicornAIM 130.00 1.00 133.00 122.00 4.62 148.4 -12.4
BH Global 1329 -1.00 1330 1162 - 1408.0 -5.6 shown in net terms; dividends on UK companies are net of 10% tax, non-UK
HendGlob♦ 406.00 -4.88 416.81 336.20 2.46 449.0 -9.6 MMP 3.13 - 5.00 3.00 - - - F&C PvtEq 221.00 -3.50 230.00 197.00 4.86 271.9 -18.7
..EUR € 12.00 - 14.00 11.80 - - - Ordinary Income Shares 52 Week HR companies are gross of tax. Highs & lows, yields and PER are adjusted to reflect
HenHigh 191.13 -2.25 195.25 156.50 4.50 186.2 2.6 Monks 439.40 -4.10 458.90 348.40 0.91 484.5 -9.3 GraphEnt♦■ 573.50 -3.00 619.00 536.10 1.31 683.5 -16.1
..USD $ 13.14 0.02 13.35 11.46 - 13.9 -5.5 Price +/-Chg High Low Yld WO GRY 0% capital changes where appropriate.
HenInt Inc 129.25 -0.25 137.69 103.00 3.33 126.4 2.3 MontanSm 544.00 2.50 544.00 390.50 1.29 599.5 -9.3 HVPE $ 13.30 - 13.65 11.37 - 16.3 -18.4
BH Macro 2096 -7.00 2191 1919 - 2200.0 -4.7 Trading volumes are end of day aggregated totals, rounded to the nearest
Hen Opp 1040 5.00 1045.9 755.00 1.05 1113.8 -6.6 Mur Inc♦ 746.00 -11.00 801.00 699.86 4.40 800.8 -6.8 HgCapital 1093 10.00 1169 1003 2.65 1221.2 -10.5 JPM I&C 104.50 - 106.00 86.00 6.22 -16.2 -0.7
..EUR € 20.28 - 21.10 18.60 - 21.3 -4.8 1,000 shares.
HenSmlr 690.00 -4.00 696.00 468.13 1.59 753.2 -8.4 Mur Int 1023 -18.00 1123 980.00 4.40 967.8 5.7 JPM Pvt Eq $ 0.96 -0.01 0.98 0.76 - 1.3 -26.2 JupiterDv&G 4.80 - 5.67 3.50 15.00 4.3 -33.8
..USD $ 20.25 - 21.10 18.60 - 21.1 -4.0
HendVal 237.50 2.50 254.00 218.00 1.26 288.2 -17.6 ..B 1025 - 1499.48 885.89 - 967.8 5.9 JZ Capital♦ 470.00 -1.00 480.00 390.00 - 705.4 -33.4 M&GHI&Gt 62.00 -0.50 68.80 55.00 - -17.4 0.6 Net asset value per share (NAV) and split analytics are provided only as a
BiotechGth 820.00 -1.50 874.50 457.13 - 865.3 -5.2
Herald 726.00 -6.00 735.00 594.00 - 884.3 -17.9 NB DDIF $ 1.20 - 1.25 1.00 - - - LMS Capitl 76.00 -0.75 87.25 74.25 - 94.8 -19.8 Rghts&Icp 4372.5 35.00 4900 3800 - -71.5 4.5 guide. Discounts and premiums are calculated using the latest cum fair net
BlckRCom 86.25 -3.75 119.88 80.54 6.94 84.7 1.8
HICL Infra♦ 152.90 -0.60 161.40 135.60 5.83 134.9 13.3 NewCtyEgy 18.38 - 42.00 16.00 - 23.1 -20.4 Mithras 147.50 - 149.66 130.00 0.68 160.2 -7.9 asset value estimate and closing price. Discounts, premiums, gross redemption
BlckREmEur 223.50 -4.50 280.00 169.25 1.04 254.8 -12.3 Income Shares 52 Week HR
Impax Env. 161.00 -0.25 167.75 136.00 0.75 183.9 -12.5 ..Sub 0.13 - 0.15 0.06 - - - NB PE Ptnr $ 11.90 - 12.20 10.40 - - - yield (GRY), and hurdle rate (HR) to share price (SP) and HR to wipe out (WO)
BlckRFrnt♦ 114.75 -2.00 133.28 103.50 3.62 119.1 -3.7 Price +/-Chg High Low Yld WO GRY 0%
Ind IT 323.50 - 329.00 268.50 1.55 349.5 -7.4 NewCityHY 60.75 -0.25 67.50 59.50 6.96 59.9 1.4 Nthn Invs 570.00 - 630.00 381.50 1.75 522.7 9.0 are displayed as a percentage, NAV and terminal asset value per share (TAV)
BlckRGtEur 254.00 -2.75 264.50 201.75 1.85 264.1 -3.8 JPM In&Gr♦ 97.38 -1.63 100.49 90.15 4.52 -64.6 7.8
Intl PP♦ 137.00 -0.30 140.59 128.50 4.54 121.6 12.7 NewIndia 316.50 -4.50 371.30 243.66 - 351.9 -10.1 Pantheon 1290 -7.00 1355 1126.61 - 1539.5 -16.2 in pence.
..Sub 19.38 -0.13 25.63 8.00 - - - M&GHghIc 59.00 - 62.50 53.00 - -17.3 1.8
InvAsTr 201.00 -3.75 213.58 167.75 1.72 226.5 -11.3 New Star IT 73.50 - 77.01 65.45 - 116.3 -36.8 PantheonR 1285 - 1300 1045 - 1539.5 -16.5
BlckR I&G 189.50 -1.00 193.00 158.01 3.21 192.9 -1.8 Rghts&I 1145 - 1216 895.00 2.71 - 34.1
Inv Inc 302.00 -2.00 305.00 255.00 3.96 320.1 -5.7 NorthAmer 835.00 -15.00 906.45 790.45 3.41 928.7 -10.1 PrincssPE €♦ 7.77 0.02 8.12 6.47 7.34 8.7 -10.7 X FT Global 500 company
BlckRIncStr 137.00 -1.00 142.00 119.25 4.71 141.3 -3.0
InvPerp 76.25 0.13 79.00 69.00 6.56 73.5 3.7 NthAtSml 1930 5.00 1953 1625.86 - 2479.7 -22.2 Riverstone 1018 -42.00 1114 822.00 - 1058.7 -3.8 Capital Shares 52 Week HR ♦ trading ex-dividend
BlckRckLat 360.00 -4.75 508.45 355.00 5.36 406.4 -11.4
IPST BalR 121.50 - 123.00 114.00 - 121.6 -0.1 Oryx Int 500.00 - 510.00 375.00 - 608.5 -17.8 StdLfEuPv 221.00 5.00 236.42 200.00 2.26 269.9 -18.1 Price +/-Chg High Low SP WO TAV 0% ■ trading ex-capital distribution
BlckRckNrAm♦ 113.00 -1.50 124.50 98.75 2.65 125.0 -9.6
IPST Gbl Eq 166.50 - 172.00 138.00 2.64 166.3 0.1 PacAsset♦ 206.75 -1.75 226.15 158.26 1.26 203.1 1.8 JPM Inc&Gr 14.38 -0.38 15.19 9.00 0.8 -5.9 12.5 # price at time of suspension from trading
BlckRSmlr♦ 946.00 -14.00 962.00 697.00 1.36 1037.9 -8.9 Conventional - Property ICs 52 Week Dis(-)
BlckRThrmt 331.00 -4.50 337.00 238.00 1.22 383.5 -13.7 IPST Mngd 101.50 0.38 101.81 100.75 - 103.2 -1.6 PacHorzn 199.00 -0.25 223.77 171.75 0.70 219.0 -9.1 Price +/-Chg High Low Yld NAV or Pm M&GHghIc 4.80 -0.05 6.10 3.00 7.7 6.3 -
The prices listed are indicative and believed accurate at the time of publication.
BlckRWld 304.60 -6.60 510.00 285.44 6.89 342.8 -11.1 IPST UK Eq 170.50 -1.25 174.00 143.00 3.31 170.8 -0.2 Perp I&G♦■ 418.00 -10.10 429.90 350.81 2.92 422.7 -1.1 Direct Property Zero Dividend Preference Shares 52 Week HR No offer is made by Morningstar or the FT. The FT does not warrant nor
Bluecrest A 188.30 -0.20 194.60 179.10 - 199.2 -5.5 InvPpUK♦ 385.00 - 387.50 281.00 1.69 407.6 -5.5 PerAsset 35170 -360.00 36313.1 33050 1.64 34753. 1.2 Price +/-Chg High Low SP WO TAV 0%
AseanaPr $ 0.58 0.02 0.58 0.39 - 0.7 -17.1 guarantee that the information is reliable or complete. The FT does not accept
Brit Emp 526.50 -6.00 557.08 475.40 1.99 593.5 -11.3 Invs Cap A 98.50 - 102.00 87.00 4.55 105.1 -6.3 4 Abf Gd Inc 149.25 - 152.00 143.00 -42.2 - 159.7
AXA Propty 45.38 0.75 45.75 39.45 - - - responsibility and will not be liable for any loss arising from the reliance on
Brunner 574.25 -1.75 580.00 486.00 3.10 662.8 -13.4 Invs Cap B 102.00 - 103.00 87.03 1.13 105.1 -2.9 PolarFins 106.50 0.50 108.00 92.00 2.28 116.6 -8.7 EcofinWatr 154.00 - 154.50 147.50 -79.4 - 160.7
CustdnREIT♦ 109.00 - 115.50 104.00 - - - or use of the information.
Calednia 2486 -29.00 2517.66 2102.52 2.03 2948.6 -15.7 Invs CapU 390.00 - 404.95 347.00 - 420.7 -7.3 ..Sub 8.63 - 16.00 5.00 - - - JPM I&C 172.50 -0.38 174.00 165.50 -20.1 - 192.1
F&CComPrp 139.80 -0.20 148.40 119.00 4.29 122.8 13.8
CanGen C$♦ 21.00 -0.23 21.72 17.80 1.21 28.1 -25.3 JLaingInf 121.60 -0.50 128.60 114.10 5.35 105.7 15.0 PolarHealth 176.00 -4.00 182.50 142.50 2.02 191.4 -8.0 JupiterDv&G 112.00 -0.25 114.00 99.50 -7.2 - 135.1 The London Share Service is a paid-for-print listing service and may not be
F&CUKRealE 99.00 -1.25 104.50 82.00 5.05 93.3 6.1
Cap Gear♦ 3330 -119.00 3575 3080 0.48 3230.3 3.1 JPM Amer 281.70 -4.80 296.14 236.05 0.96 294.8 -4.4 PolarTech 607.00 -5.00 614.00 458.80 - 614.1 -1.2 JZ Capital 356.75 - 358.30 341.50 -87.6 - 369.8 fully representative of all LSE-listed companies. This service is available to all
InvistaERET 0.50 -0.03 4.39 0.15 - 6.5 -92.3
City Merch 191.75 -0.25 194.00 182.15 5.22 187.0 2.5 JPM Asn 247.00 -2.00 268.92 201.29 8.91 279.0 -11.5 ProspJap $ 1.02 0.00 1.19 0.91 - 1.2 -15.0 M&GHghIc 113.63 - 114.70 110.01 -20.7 -94.2 122.8 listed companies, subject to the Editor’s discretion. For new sales enquiries
Longbow 103.50 0.50 106.75 100.50 5.56 - -
CityNatRs 102.25 -0.75 146.75 95.00 5.48 135.3 -24.4 JPM Brazil 54.00 -0.13 76.49 48.50 1.85 57.1 -5.4 QatarInvF $ 1.25 -0.02 1.49 1.15 - 1.5 -16.7 UtilicoFn16 184.75 - 186.00 175.25 -62.8 -95.8 192.8 please email stella.sorrentino@ft.com or call 020 7873 4012.
PictonProp 71.25 -0.50 74.25 60.50 4.21 67.6 5.4
City Lon 407.50 -6.80 418.35 345.00 3.65 400.0 1.9 JPM China 204.00 -4.00 233.96 150.46 0.78 238.5 -14.5 RIT Cap 1559 -27.00 1615 1265.55 1.89 1576.7 -1.1 UtilicoFn18 140.88 - 146.50 122.50 -21.1 -32.8 160.5
SLIPropInc 86.00 0.25 90.25 72.90 5.37 76.7 12.1
DexionAb 188.50 -0.63 189.80 165.25 - 198.1 -4.8 JPMElct MC 99.75 - 101.99 97.01 - 101.4 -1.6 RobecoNV € 30.38 - 30.91 28.12 - - - UtilicoFn20 120.13 0.25 120.25 100.00 -10.3 -13.0 154.9
UKComPrp 87.25 - 94.00 80.50 4.67 83.7 4.2
..EUR € 2.48 - 2.50 2.36 - 2.7 -8.1 ..MG♦ 627.25 -0.50 635.00 507.66 1.13 640.8 -2.1 RolincoNV € 28.32 - 28.98 26.35 - - -
Property Securities
Data provided by Morningstar
..USD $ 3.85 0.09 3.75 3.53 - 4.2 -8.3 ..MI♦ 108.00 - 109.50 93.01 1.57 108.7 -0.6 Ruffer Inv 221.25 0.25 226.00 193.50 - 222.1 -0.4
SchdrGlbRe 123.25 1.25 132.98 29.00 2.86 129.9 -5.1
Investment Companies - AIM
DiverseInc 86.50 -0.75 88.00 73.02 2.78 87.1 -0.7 JPM Emrg 592.50 -11.50 674.65 548.50 0.93 670.9 -11.7 SchdrAsiaP 293.00 -2.50 321.50 247.16 0.94 321.2 -8.8
JPM EurGth 248.50 -3.50 263.00 193.00 2.70 269.9 -7.9 Schdr Inc 284.75 -0.38 290.52 235.50 3.55 297.2 -4.2 TR Prop 305.20 -2.80 325.00 232.40 2.54 309.6 -1.4 52 Week Dis(-)
Dun Inc 260.50 -5.50 371.25 239.00 4.26 280.3 -7.1
Dun Sml 216.50 -1.50 220.26 171.30 2.40 256.2 -15.5 JPM EurInc 140.25 2.25 147.50 104.75 - 143.7 -2.4 SchdrJap 162.25 -2.25 165.00 115.25 1.11 173.3 -6.4 VCTs 52 Week Dis(-) Price +/-Chg High Low Yld NAV or Pm
EcofinWatr 143.00 -1.13 176.75 132.56 4.90 185.5 -22.9 JPM EuSm♦ 248.50 -4.00 256.00 42.40 1.17 277.3 -10.4 SchdrOrient 202.75 -0.75 215.25 179.00 3.77 199.0 1.9 Price +/-Chg High Low Yld NAV or Pm AdFrntMkt 59.00 - 65.50 55.00 - 62.8 -6.1
..CULS 103.63 0.13 111.70 103.86 - - - JPM Clavr 631.00 -10.00 645.00 534.51 3.09 665.4 -5.2 SchdrUK 169.25 -1.25 182.50 146.83 2.66 187.3 -9.6 AlbionDev 69.00 - 70.89 67.00 7.25 71.7 -3.8 CrysAmber 153.50 - 155.50 129.81 0.3 162.7 -5.7
JPMGIConv♦ 104.25 0.25 112.50 99.00 5.40 101.9 2.3 SchdrUKMd♦ 491.75 -7.25 504.50 402.49 1.73 539.9 -8.9
EdinDragn
..CULS
280.00
106.75
-4.75 311.00 257.00
- 107.70 103.00
0.79
-
314.2
- -
-10.9
JPM GEI 113.50 -1.00 130.00 111.00 4.32 114.2 -0.6 ScotAmer♦ 269.50 -5.50 275.50 221.99 3.88 259.9 3.7
Albion Ent 87.50 - 92.00 85.00 5.71 95.8 -8.7 GLI Finance♦
IndiaCap
55.63
58.63
-0.13
0.25
65.00 51.00
69.40 46.00 -
9.0 -
70.9
-
-17.3
www.morningstar.co.uk
AlbionTech♦ 76.00 - 81.00 71.25 6.58 78.1 -2.7
JPM I&C Uni 368.00 -2.00 370.50 330.06 - 383.9 -4.1 Scottish In 656.00 -9.00 670.00 536.00 1.83 725.0 -9.5 Infra India 14.50 - 16.50 10.00 - 44.1 -67.1
Friday 5 June 2015 FINANCIAL TIMES 25

MANAGED FUNDS SERVICE

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

Arisaig Latin America Consumer Fund $ 22.73 - 0.01 0.00 CF Heartwood Balanced Income B Inc X 118.20 - -0.55 2.42 Long Bond Gross £ 0.78 - -0.01 2.78
CF Heartwood Balanced B Acc X 130.59 - -0.78 0.50 Long Bond Fund Gross Inc £ 10.73 - -0.23 2.83
ACPI Global UCITS Funds Plc (IRL) Barmac Asset Management Ltd (UK) Euronova Asset Management UK LLP (CYM) Frontier Capital (Bermuda) Limited
CF Heartwood Defensive Multi Asset Fund B Accumulation 110.69 - -0.39 0.01 Pacific (Ex Japan) £ 3.88 - -0.07 1.77
www.acpishard.com 40 Dukes Place, London, EC3A 7NH Regulated Other International
Regulated Authorised Corporate Director - Capita Financial Managers CF JM Finn Gbl Opps A Acc ♦ 278.13 - -1.75 1.54 Smaller Cos Cls One Shares (Est) € 34.95 - -0.23 0.00 Pan European £ 2.80 - -0.01 1.91 Commercial Property-GBP Class £ 71.42 - -0.53 -
ACPI Emerging Mkts FI UCITS Fund USD A $ 115.59 - -0.21 0.00 Dealing: 0845 922 0044 CF Richmond Core X 201.11 - 0.10 0.00 Reduced Duration UK Corporate Bond £ 10.65 - -0.03 3.11
Smaller Cos Cls Two Shares (Est) € 24.50 - -0.15 0.00 Global Real Estate-GBP C Class £ 45.26 - -0.50 -
Authorised Inv Funds
ACPI Global Credit UCITS Funds USD A $ 13.92 - -0.02 0.00 CF Seneca Diversified Growth A ACC 228.17 - -1.15 1.26 Smaller Cos Cls Three Shares (Est) € 12.33 - -0.07 - Reduced Duration UK Corporate Bond Gross £ 10.80 - -0.03 3.11
Retail Accumulation 2 117.95 - -0.35 0.00
ACPI Global Fixed Income UCITS Fund USD A $ 150.98 - -0.26 0.00 CF Seneca Diversified Growth B ACC 134.58 - -0.67 2.18 Smaller Cos Cls Four Shares (Est) € 15.85 - -0.09 0.00 Reduced Duration UK Corporate Bond Inc £ 10.14 - -0.03 3.11
Retail Income 2 116.69 - -0.38 0.00 Crèdit Andorrà Asset Management (LUX)
Q ACPI India Fixed Income UCITS Fund USD A $ 10.01 - -0.03 - CF Seneca Diversified Growth N ACC 133.41 - -0.67 1.88 Reduced Duration UK Corp Bond Gross Inc £ 10.15 - -0.03 3.11
The Castleton Growth Fund Ret Acc X F 114.34 - -0.35 0.00 www.creditandorra.com
Artemis Fund Managers Ltd (1200)F (UK)
ACPI India Fixed Income UCITS Fund USD A3 $ 85.45 - -0.21 0.00 CF Seneca Diversified Income A INC 91.99 - -0.29 5.43 FCA Recognised Select Emerging Markets Equities £ 1.33 - -0.02 0.91
57 St. James's Street, London SW1A 1LD 0800 092 2051 The Castleton Growth Fund Ret Inc X F 114.86 - -0.35 0.00
ACPI International Bond UCITS Fund USD A $ 17.92 - -0.05 0.00 Authorised Inv Funds CF Seneca Diversified Income B INC 108.90 - -0.35 5.05 Crediinvest SICAV Money Market Eur I € 11.22 - 0.00 0.00 Select European Eqts £ 1.73 - 0.01 1.88
Artemis Capital R ACC 1329.23 1405.19 -14.87 1.18 CF Seneca Diversified Income N INC 107.92 - -0.35 5.05 Crediinvest SICAV Money Market Usd A $ 10.02 - 0.00 0.00 Select Global Equities £ 3.11 - -0.03 0.91
Artemis European Growth R Acc 260.01 274.64 -1.32 1.12 BlackRock (JER) Investment Adviser - DSM Capital Partners Crediinvest SICAV Fixed Income Eur € 10.87 - -0.04 0.00 South East Asia £ 3.90 - -0.06 0.65
ACPI Select UCITS Funds PLC (IRL) Regulated The Westchester X $ 28.15 - 0.06 0.00 Fundsmith LLP (1200)F (UK)
Artemis European Opps R Acc 78.45 82.81 -0.15 0.79 Crediinvest SICAV Fixed Income Usd $ 10.65 - -0.03 0.00 Sterling Core Plus Bond Gr Accum £ 1.98 - -0.04 3.60
Regulated PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815
BlackRock UK Property £ 39.73 - 0.10 3.65 The Westchester Class 1 GBP Acc £ 19.75 - -0.17 0.00
ACPI Balanced UCITS Fund USD Retail $ 14.53 - 0.00 0.00 Artemis Global Emg Mkts I GBP Acc 92.63 - -1.34 - Crediinvest SICAV Spanish Value € 287.07 - 1.50 0.00 Sterling Core Plus Bond Inc £ 1.31 - -0.02 3.72 www.fundsmith.co.uk, enquiries@fundsmith.co.uk
Blackrock UK Long Lease £ 1050.16 - 1.05 0.00 The Westchester Class 2 GBP Acc £ 19.78 - -0.17 0.00 Eurobank Fund Management Company (Luxembourg) S.A.
ACPI Balanced UCITS Fund EUR Retail € 10.98 - 0.00 0.00 Artemis Global Emg Mkts I GBP Dist 92.63 - -1.35 - Crediinvest SICAV International Value € 255.89 - -0.95 0.00 UK £ 3.68 - -0.04 1.76 Authorised Inv Funds
BLK Intl Gold & General $ 5.05 5.32 -0.03 0.00 Regulated
Artemis Global Energy R Acc 28.60 30.29 -0.42 0.00 Investment Adviser - Morant Wright Management Limited Crediinvest SICAV Big Cap Value € 19.64 - 0.01 0.00 Fundsmith Equity T Acc 210.52 - -1.97 1.06
ACPI Balanced UCITS Fund GBP Retail £ 11.09 - 0.00 0.00 (LF) Absolute Return € 1.31 - 0.00 0.00 UK Aggreg Bond Gr Accum £ 1.77 - -0.02 3.10
CF Morant Wright Japan A X 283.32 - -1.06 0.00 Fundsmith Equity T Inc 200.41 - -1.87 1.07
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Artemis Global Growth R Acc 192.33 203.04 -1.19 0.77 Crediinvest SICAV US American Value $ 18.75 - 0.06 0.00 UK Aggregate Bond Inc £ 1.21 - -0.01 3.17
(LF) Balanced - Active Fund (RON)RON 16.66 - -0.01 0.00
CF Morant Wright Japan A Inc X 279.13 - -1.05 0.00
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - Artemis Global Income R Acc 100.45 106.09 -0.92 3.60 Crediinvest SICAV Sustainability € 16.75 - -0.15 0.00 UK Corporate Bond £ 1.23 - -0.01 3.97
(LF) Cash Fund € € 1.33 - 0.01 0.00
CF Morant Wright Japan B X 300.71 - -1.12 0.50
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Artemis Global Income R Inc 83.06 87.73 -0.77 3.71 UK Corporate Bond - Gross £ 2.23 - -0.02 3.83
CF Morant Wright Japan B Inc X 283.57 - -1.06 0.52
(LF) Cash Fund (RON) RON 15.69 - 0.01 0.00 GAM Limited (2300)F (UK)
ACPI Focused Equity UCITS Fund $ 13.67 - 0.00 0.00 Artemis Global select R Acc 72.65 76.69 -0.64 0.00 UK Corporate Bond Fund Gross Inc £ 11.18 - -0.11 3.95 GAM Sterling Management Limited
Dantrust Management (Guernsey) Ltd (GSY) (LF) Eq Emerging Europe € 0.84 - -0.01 0.00
CF Morant Wright Nippon Yield ACC A X 287.36 - -1.62 2.00 12 St James's Place London SW1A 1NX. 0800 919 927
Artemis High Income R Inc 81.03 86.28 -0.27 5.64 UK Gilt Bond £ 1.25 - -0.02 1.89
Regulated (LF) Eq Flexi Style Greece € 1.13 - 0.04 -
CF Morant Wright Nippon Yield ACC B X 297.24 - -1.68 1.99 Internet: gam.com
Artemis Income R Inc 216.08 228.97 -1.86 4.07 Dantrust II Limited kr 459.40 459.50 -1.10 0.00 UK Gilt Gross £ 1.97 - -0.02 1.86
(LF) Global Bond Fd € 12.04 - -0.08 0.00 Authorised Inv Funds
Abbey Life Assurance Company Limited (UK)
Artemis Income R Acc 362.09 383.70 -3.11 3.96
CF Morant Wright Nippon Yield Fund A Inc X 252.27 - -1.42 2.04
100 Holdenhurst Road, Bournemouth BH8 8AL 0845 9600 900
BlueBay Asset Management LLP (LUX) (LF) Global Equities € 1.23 - 0.00 0.00 UK Long Corp Bond £ 1.36 - -0.03 4.36 GAM Funds OEIC
Regulated CF Morant Wright Nippon Yield Fund B Inc X 261.02 - -1.47 2.03
additional fund prices can be found @ www.abbeylife.co.uk Artemis Monthly Dist R Inc 63.96 67.83 -0.46 4.58 UK Long Corp Bond - Gross £ 2.41 - -0.05 4.19 GAM Global Diversified Acc 4211.43 - 11.29 0.00
(LF) Eq Mena Fund € 15.30 - -0.05 0.00
Insurances Artemis Pan-Euro Abs Ret GBP 107.01 - -0.43 - BlueBay EmMkt B-USD $ 292.54 - -0.85 0.00 DAVIS Funds SICAV (LUX)
GAM North American Gwth Acc 3381.98 - 16.63 0.00
Regulated (LF) Greek Government Bond € 15.60 - 0.53 0.00 UK Long Corporate Bond Fund - Gross Income £ 10.96 - -0.19 4.33
Life Funds BlueBay EmMktCrp B-USD $ 166.64 - -0.93 0.00
Asset Management
Artemis Strategic Assets R Acc 82.00 86.86 0.34 0.00 Cavendish Asset Management Limited (1200)F (UK) UK Specialist £ 1.95 - -0.02 1.12 GAM UK Diversified Acc 2022.20 - 7.50 0.99
Davis Value A $ 42.25 - 0.26 0.00 (LF) Income Plus $ $ 1.22 - 0.00 0.00
Prop. Acc. Ser 2 1516.40 1596.20 -0.70 - BlueBay EmMktSel B-USD $ 152.37 - -0.52 0.00 Chelsea House, Westgate, London W5 1DR
Artemis Strategic Bond R M Acc 84.22 89.37 -0.36 3.95 Retail Share Classes
Davis Global A $ 31.71 - 0.19 0.00 (LF) Greek Corporate Bond € 10.86 - 0.11 0.00
Selective Acc. Ser 2 1602.10 1686.40 -17.30 - BlueBay EmMkLocCy B-USD $ 145.23 - -0.34 0.00 IFA Enquiries 020 8810 8041 Admin/Dealing 0870 870 7502 Emerging Markets - retail £ 1.33 - -0.03 0.00
Artemis Strategic Bond R M Inc 55.06 58.43 -0.23 4.02
Authorised Inv Funds (LF) FOF Balanced Blend € 1.46 - -0.01 0.00 GAM Limited (IRL)
American Ser. 4 1694.80 1784.00 -11.90 - BlueBay GlblConv I-USD $ 197.48 - 0.31 0.00 Europe Long Term Growth £ 1.54 - 0.00 1.84
Artemis Strategic Bond R Q Acc 84.31 89.46 -0.35 3.96
Cavendish Opportunities Fund B Class 1111.00 - -3.00 1.37 (LF) FOF Equity Blend € 1.40 - -0.01 0.00 FCA Recognised
Custodian Ser. 4 496.10 522.20 -4.30 - BlueBay GlblHgYd B-USD $ 134.10 - -0.10 0.00 Discretionary Unit Fund Mngrs (1000)F (UK) {*}CAR - Net income reinvested
Artemis Strategic Bond R Q Inc 55.30 58.68 -0.23 4.04 GAM Fund Management Ltd
Cavendish Opportunities Fund A Class 1105.00 - -3.00 0.60 1 Poultry, London EC2R 8JR 020 7 415 4130 (LF) FOF Glob. Emerging Mkts € 0.98 - -0.01 0.00
Equity Ser. 4 588.40 619.40 -5.80 - BlueBay HgYield B-EUR € 340.17 - -0.04 0.00 Georges Court, 54-62 Townsend Street, Dublin 2 + 353 1 6093927
Artemis UK Growth R Acc 462.71 490.18 -4.56 0.54
Cavendish Opportunities Fund C Acc 1146.00xd - -3.00 1.20 Authorised Inv Funds (LF) FOF Dynamic Fixed Inc € 12.01 - -0.11 0.00
European Ser 4 603.30 635.00 -4.30 - BlueBay HgYieldCp B-EUR € 144.05 - -0.01 0.00 GAM Star Fund Plc
Artemis UK Smaller Cos R Acc 1106.63 1192.53 -3.93 0.50 Disc Inc 1515.80 1562.70 26.90 0.00 FIL Fund Management (LUX)
Cavendish Worldwide Fund B Class 325.30 - -2.70 0.75 (LF) FOF Real Estate € 16.60 - -0.29 0.00 GAM Star Asia-Pacific Eqty USD Acc F $ 13.66 - 0.03 0.67
Fixed Int. Ser. 4 868.40 914.10 -12.80 - BlueBay InvGr B-EUR € 171.79 - -1.09 0.00 2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg
Artemis UK Special Sits R Acc 535.74 569.57 -4.41 1.57 Do Accum 5687.10 5863.00 100.90 0.00
Cavendish Worldwide Fund A Class 324.90 - -2.70 0.07 GAM Star Asian Eqty USD Ord Acc F $ 16.83 - -0.08 0.00
Intl Ser. 4 454.70 478.60 -3.30 - BlueBay InvGEurGv B-EUR € 147.24 - -1.20 0.00 Phone: 800 22 089, 800 22 088
Artemis US Abs Ret I Acc 101.78 - -0.04 -
Cavendish Worldwide Fund C Acc 332.60xd - -2.80 0.80 Regulated GAM Star Balanced GBP Acc £ 10.96 - 0.00 0.00
Japan Ser 4 388.60 409.00 -1.40 - BlueBay InvGEurAg I-EUR € 147.98 - -1.06 0.00
Artemis US Equity I Acc 112.82 - -1.31 -
Cavendish AIM Fund B Class 162.80 - -0.30 0.37 China Consumer A-GBP £ 17.53 - -0.04 0.00
Man. Ser. 4 1708.70 1798.60 -12.70 - BlueBay InvGLibor B-EUR € 125.97 - -0.08 0.00 GAM Star Cap.Appr.US Eqty USD Inc F $ 19.19 - 0.09 0.00
Artemis US Select I Acc 113.69 - -1.14 -
Cavendish AIM Fund A Class 158.20 - -0.30 0.00 China Focus A-GBP £ 5.41 - 0.01 0.20
Money Ser. 4 524.20 551.80 0.00 - HighIncomeLoan H-EUR € 195.11 - 0.01 0.00 GAM Star Cat Bond USD Acc $ 12.40 - 0.00 0.00
Artemis US Select I Inc 101.54 - -1.01 -
Cavendish Asia Pacific Fund B Class 183.80 - -3.20 1.31 Global Financial Services A-GBP £ 0.47 - 0.01 0.00
Prop. Ser. 4 1081.60 1138.50 -0.80 - GAM Star Cautious GBP Acc £ 10.89 - -0.01 0.00
Artemis US Smlr Cos I Acc 121.17 - -1.35 -
Cavendish Asia Pacific Fund A Class 183.00 - -3.20 0.60 Global Health Care A-GBP £ 0.59 - 0.01 0.00
Custodian Ser 5 476.90 502.00 -4.20 - GAM Star China Equity USD Acc F $ 29.42 - -0.10 0.38
Artemis US Ex Alpha I Acc 115.25 - -1.30 -
BONHOTE Cavendish Asia Pacific Fund C Acc 189.00 - -3.40 1.30 Global Industrials A-GBP £ 0.70 - 0.00 0.00
GAM Star Cont European Eqty GBP Acc F £ 3.70 - 0.05 0.00
International Ser 5 437.10 460.10 -3.30 - FIL Investment Services (UK) Limited (1200)F (UK)
Other International Funds Cavendish European Fund B Class 148.80 - -0.20 1.19 Global Inflation-Linked Bd A-GBP-Hdg £ 1.18 - 0.00 0.51
Managed Ser 5 1642.70 1729.20 -12.30 - Dodge & Cox Worldwide Funds (IRL) 130, Tonbridge Rd, Tonbridge TN11 9DZ GAM Star Cred Opportunities GBP Acc £ 13.03 - -0.02 3.98
Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6798.00 - -103.00 2.23
Cavendish European Fund A Class 147.20 - -0.10 0.35 6 Duke Street,St.James,London SW1Y 6BN Callfree: Private Clients 0800 414161 Global Real Asset Securities £ 1.53 - 0.00 0.00
Money Ser 5 513.30 540.30 0.00 - Artisan Partners Global Funds PLC (IRL) GAM Star Defensive GBP Acc £ 11.27 - -0.01 0.00
Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 10430.00 - -42.00 0.87 www.dodgeandcox.worldwide.com 020 3713 7664 Broker Dealings: 0800 414 181
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland Cavendish Japan Fund B Class 164.30 - -0.40 0.74 Global Technology A-GBP £ 0.26 - 0.00 0.00
Property Ser 5 1039.80 1094.50 -0.90 - GAM Star Discretionary FX USD Acc F $ 12.98 - -0.08 0.00
Tel: 44 (0) 207 766 7130 FCA Recognised Authorised Inv Funds
Cavendish Japan Fund A Class 163.00 - -0.30 0.00 Global Telecomms A-GBP £ 0.29 - 0.00 0.99
Pension Funds FCA Recognised Dodge & Cox Worldwide Funds plc - Global Bond Fund Unit Trust GAM Star Dynamic Gbl Bd USD Acc H $ 10.17 - -0.02 1.51
American 1958.70 2061.80 -12.60 - Artisan Partners Global Funds plc Braemar Group PCC Limited (GSY) Cavendish North American Fund B Class 196.30 - -0.60 0.57 EUR Accumulating Class € 11.81 - -0.17 0.00 Cash Accum Units 186.29 186.29 0.00 0.00 India Focus A-GBP £ 4.43 - -0.05 0.00
GAM Star Emerg. Market Rates USD Acc F $ 11.54 - -0.01 0.00
Artisan Emerging Markets I USD Acc $ 8.00 - -0.02 0.00 Regulated Cavendish North American Fund A Class 190.60 - -0.60 0.00 Latin America A-GBP £ 1.63 - 0.00 0.19
Equity 5243.30 5519.30 -46.10 - EUR Accumulating Class (H) € 9.55 - -0.02 0.00 Cash Fund £ 1.00 1.00 0.00 0.13 GAM Star European Eqty USD Acc F $ 24.62 - 0.31 0.00
UK Agricultural Class A £ 1.27 - 0.00 0.00 Cavendish Technology Fund B Class 286.80 - -0.90 0.09
European 1229.80 1294.60 -5.50 - Artisan Global Equity Fund Class I USD Acc $ 15.89 - 0.06 0.00 EUR Distributing Class € 11.52 - -0.16 2.33 Gross Accum Cash £ 1.28 1.28 0.00 0.00 GAM Star Flexible Gbl Port GBP Ac £ 13.15 - 0.01 0.00
UK Agricultural Class B £ 1.39 - 0.00 0.00 Cavendish Technology Fund A Class 273.50 - -0.80 0.00
Fixed Int. 1583.80 1667.10 -26.90 - Artisan Global Opportunities I USD Acc $ 12.71 - 0.07 0.00 EUR Distributing Class (H) € 9.31 - -0.02 2.69 MoneyBuilder Cash ISA £ 1.00 1.00 0.00 0.13 GAM Star GAMCO US Equity Acc F $ 14.60 - 0.11 0.00
Student Accom Class B £ 0.55 - -0.17 0.00 Findlay Park Funds Plc (IRL)
International 973.10 1024.30 -6.90 - Artisan Global Value Fund Class I USD Acc $ 16.79 - 0.09 0.00 Cavendish UK Balanced Income Fund B Class 146.00 - -1.10 5.12 GBP Distributing Class £ 10.31 - -0.02 2.52 MoneyBuilder Global £ 2.76 2.76 -0.01 0.18 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 GAM Star Global Rates USD Acc F $ 12.88 - 0.04 0.00
Japan 412.20 433.90 -1.80 - Artisan US Value Equity Fund Class I USD Acc $ 11.94 - 0.05 0.00 Cavendish UK Balanced Income A Class 139.10 - -1.10 5.37 GBP Distributing Class (H) £ 9.36 - -0.02 2.64 OEIC Funds FCA Recognised GAM Star Global Selector USD Acc F $ 14.73 - 0.03 0.00
Cavendish UK Select Fund B Class 168.50 - -0.80 1.69 American £ 28.31 - -0.27 0.00 American Fund USD Class $ 81.86 - 0.20 0.00
Managed 4449.60 4683.80 -32.30 - CAF Financial Solutions (UK) USD Accumulating Class $ 9.60 - -0.03 0.00 GAM Star Japan Eqty USD Acc F $ 13.89 - -0.07 0.33
Kings Hill, West Malling, Kent 03000 123 222 Cavendish UK Select Fund A Class 168.30 - -0.80 0.92 Dodge & Cox Worldwide Funds plc-Global Stock Fund American Special Sits £ 11.60 - -0.13 0.00 American Fund GBP Hedged £ 44.59 - 0.11 0.00
Property 2789.80 2936.70 -1.50 - GAM Star Keynes Quant Strat USD Acc F $ 12.38 - -0.02 0.00
Ashmore Sicav (LUX) Property & Other UK Unit Trusts Asia Pacific Ops W-Acc £ 1.10 - -0.03 - American Fund GBP Unhedged £ 53.40 - 0.23 -
Security 1477.00 1554.70 0.00 - USD Accumulating Share Class $ 17.73 - 0.07 0.00
2 rue Albert Borschette L-1246 Luxembourg GAM Star Local EM Rates and FX USD Acc $ 11.63 - -0.07 0.00
CAF UK Equitrack Inc Fd 75.14 75.14 -0.79 3.10
Asset Management
FCA Recognised GBP Accumulating Share Class £ 19.02 - 0.08 0.00 Fidelity Asian Dividend Fund A-Accumulation £ 1.19 - -0.03 1.26 Latin American Fund USD Class $ 14.77 - 0.22 0.00
Selective 2048.70 2156.60 -25.50 - GAM Star North of South EM Equity Acc F $ 12.11 - -0.07 0.02
Cedar Rock Capital Limited
Asset Management
CAF UK Equitrack Acc Fd 104.60 104.60 -1.10 3.10 (IRL)
Formerly Hill Samuel Life Assurance Ltd Ashmore SICAV Emerging Market Debt Fund $ 99.46 - -0.09 9.17 GBP Distributing Share class £ 13.93 - 0.06 0.72 Fidelity Asian Dividend Fund A-Income £ 1.14 - -0.03 2.61 Latin American Fund GBP Unhedged £ 9.62 - 0.04 -
Regulated GAM Star Technology USD Acc F $ 16.99 - 0.16 0.00
100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603 FP CAF Alternative Strategies A Class Acc 111.88 - -0.11 0.41 China Consumer £ 1.76 - -0.03 0.06
Ashmore SICAV Emerging Market Frontier Equity Fund $ 156.42 - -0.86 0.89 Cedar Rock Capital Fd Plc $ 357.91 - -9.38 0.00 EUR Accumulating Share Class € 23.62 - -0.17 0.00
GAM Star US All Cap Eqty USD Acc F $ 14.40 - 0.06 0.00
Managed Ser A (Life) 1625.90 1720.60 -0.30 - FP CAF Alternative Strategies A Class Inc 111.33 - -0.10 0.46 Dodge & Cox Worldwide Funds plc-International Stock Fund Emerging Asia £ 1.30 - -0.01 0.13
Ashmore SICAV Emerging Market Total Return Fund $ 87.03 - -0.09 6.87 Cedar Rock Capital Fd Plc £ 368.23 - 2.27 0.00 GAM Star Worldwide Eqty USD Acc F $ 3549.73 - 35.22 0.34
Managed Ser A (Pensions) 1094.50 1152.10 0.00 - FP CAF Fixed Interest A class Acc 113.69 - -0.46 2.95 USD Accumulating Share Class $ 16.12 - 0.08 0.00 Emerg Eur, Mid East & Africa H £ 1.42 - -0.04 0.89
Ashmore SICAV Global Small Cap Equity Fund $ 151.79 - -0.64 0.00 Cedar Rock Capital Fd Plc € 339.84 - 3.86 0.00
Formerly Target Life Assurance Ltd FP CAF Fixed Interest A class Inc 101.04 - -0.41 3.00 EUR Accumulating Share Class € 16.83 - -0.11 0.00
Ashmore SICAV Local Currency Fund $ 87.22 - -0.06 0.30 Enhanced Income - Acc £ 1.94 - -0.02 7.72
100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603
FP CAF Fixed Interest B class Acc 114.17 - -0.46 2.95 Dodge & Cox Worldwide Funds plc-U.S. Stock Fund GYS Investment Management Ltd (GSY)
Managed (Life) 1646.60 1733.30 0.20 - EM Mkts Corp.Debt USD F $ 101.92 - 0.00 7.65 Enhanced Income - Inc £ 1.26 - -0.01 6.88
FP CAF Fixed Interest B class Inc 101.34 - -0.41 2.99 Charles Schwab Worldwide Funds Plc (IRL) USD Accumulating Share Class $ 19.21 - 0.10 0.00 Regulated
Managed Growth (Life) 531.00 558.90 0.90 - EM Mkts Loc.Ccy Bd USD F $ 86.04 - -0.20 6.27 European - Inc £ 1.54 - -0.01 1.28
Regulated GBP Accumulating Share Class £ 19.49 - 0.11 0.00 Taurus Emerging Fund Ltd $ 224.24 228.82 -9.41 0.00
FP CAF International Equity A Class Acc 148.24 - -0.21 0.69 European £ 17.46 - -0.06 1.08
Managed (Pensions) 6569.60 6915.40 1.70 - Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 Fleming Financial Trust Investment Fund Limited (NZ)
FP CAF International Equity A Class Inc 144.33 - -0.21 0.69 GBP Distributing Share Class £ 12.45 - 0.08 0.44
Managed Growth (Pensions) 656.20 690.70 1.30 - European Opportunities £ 3.96 - -0.01 0.23 Incorporated in New Zealand, Reg No 5141841
FP CAF UK Equity A Class Acc 156.90 - 0.16 1.98 EUR Accumulating Share Class € 22.12 - -0.13 0.00
additional fund prices can be found on our website Extra Income £ 0.27 - 0.00 3.42 Registered address: Level 5, 3 City Road, Graftn, Auckland, 1010, New Zealand Generali International Limited
FP CAF UK Equity A Class Inc 144.21 - 0.14 2.00 www.fftinvestmentfund.com PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108
Chartered Asset Management Pte Ltd Extra Income - Gross £ 0.27 - 0.00 3.41
info@fftinvestmentfund.com International Insurances
FP CAF UK Equity B Class Acc 156.90 - 0.15 1.98 Other International Funds
Global Dividend - Acc £ 1.57 - -0.01 3.11 Other International Funds
CAM-GTF Limited $ 331445.92 331445.92 -5418.77 0.00 Global Multi-Strategy Managed $ 5.04 5.43 -0.05 0.00
FP CAF UK Equity B Class Inc 144.19 - 0.14 2.00 Global Dividend - Inc £ 1.41 - -0.01 3.21 Fleming FT Investment Fund
CAM GTi Limited $ 741.85 - 21.46 0.00 UK Multi-Strategy Managed £ 5.06 5.45 -0.01 0.00
Fleming Fund $ 3.83 3.93 0.01 -
Global Focus £ 13.68 - -0.14 0.00
Aspect Capital Ltd (UK) Raffles-Asia Investment Company $ 1.98 1.98 0.09 6.54 EU Multi-Strategy Managed € 3.12 3.36 -0.01 0.00
Global High Yield Fund - A Gross Acc £ 12.39 - -0.03 4.70
Other International Funds Global Bond USD $ 3.53 3.81 -0.02 0.00
Aspect Diversified USD (Est) $ 389.83 - 7.56 0.00 Global High Yield Fund - A Gross Inc £ 10.53 - -0.02 5.03
Foord Asset Mgt (Guernsey) Ltd (GSY)
Aspect Diversified EUR (Est) € 234.99 - 4.66 - Dragon Capital Group Global High Yield Fund - A Net Acc £ 12.00 - -0.02 4.73 Regulated
Alceda Fund Management S.A. c/o 1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam
www.alceda.lu Aspect Diversified GBP (Est) £ 119.57 - 2.34 0.00 Global High Yield Fund - A Net Inc £ 10.52 - -0.02 5.03 Foord International Trust $ 36.48 - -0.01 0.00 Genesis Asset Managers LLP
Fund information, dealing and administration: funds@dragoncapital.com Other International Funds
FCA Recognised Aspect Diversified CHF (Est) SFr 112.67 - 2.17 0.00 Global Property - Acc £ 1.50 - -0.03 1.22
Other International Funds Emerging Mkts NAV £ 5.99 - -0.03 0.00
AC Opp - Aremus Fund EUR A € 110.08 - -0.35 0.00 Global Property W Inc £ 1.24 - -0.03 2.77
Aspect Diversified Trends USD $ 112.75 - -2.84 0.00 CCLA Investment Management Ltd (UK) Vietnam Enterprise Inv. (VEIL) NAV $ 3.43 - 0.11 0.00
Franklin Templeton International Services Sarl (IRL)
AC Risk Parity 7 Fund EUR A € 121.88 - -0.75 0.00 Senator House 85 Queen Victoria Street London EC4V 4ET Global Special Sits £ 26.63 - -0.31 0.00
Aspect Diversified Trends EUR € 113.15 - -2.79 0.00 Vietnam Growth Fund (VGF) NAV $ 22.13 - 0.35 0.00 JPMorgan House - International Financial Services Centre,Dublin 1, Ireland
AC Risk Parity 12 Fund EUR A € 147.25 - -1.61 0.00 Authorised Inv Funds Other International Funds
Aspect Diversified Trends GBP £ 116.77 - -2.92 0.00 Cheyne Capital Management (UK) LLP (IRL) Vietnam Property Fund (VPF) NAV $ 0.77 - -0.03 0.00 Index Emerging Markets P-Acc £ 1.13 - -0.01 2.25 Guardian (UK)
The Public Sector Deposit Fund Franklin Emerging Market Debt Opportunities Fund Plc
AC Risk Parity 17 Fund EUR A € 94.29 - -1.91 0.00 Regulated Index Europe ex UK P-Acc £ 1.10 - 0.00 2.29 Ballam Road, Lytham St Annes, Lancashire, FY8 4JZ 01253 733 151
The Public Sector Deposit Fund-share class 1 ♦ F 100.00 - 0.00 0.49 Franklin Emg Mkts Debt Opp CHFSFr 17.98 - 0.14 6.42 Insurances
ACQ Risk Parity Bond Fund EUR A € 100.56 100.56 -0.30 0.00 Cheyne Convertibles Absolute Return Fund € 1402.39 - 0.71 0.00
Index Japan P-Acc £ 1.18 - -0.01 1.48
The Public Sector Deposit Fund-share class 2 ♦ F 100.00 - 0.00 0.29 Franklin Emg Mkts Debt Opp EUR € 12.80 - 0.17 6.42 Guardian Assurance
Atlantas Sicav (LUX) Cheyne European Real Estate Bond Fund € 112.47 - -0.03 0.00 DSM Capital Partners Funds (LUX)
Index Pacific ex Japan P-Acc £ 1.13 - -0.02 3.45
Regulated The Public Sector Deposit Fund-share class 3 ♦ F 100.00 - 0.00 0.34 www.dsmsicav.com Franklin Emg Mkts Debt Opp GBP £ 10.63 - 0.09 6.31 Equity S-GH Class B £ 13.25 - -0.14 -
Cheyne Global Credit Fund € 121.57 - 0.05 0.00
Regulated Index UK A-Acc £ 0.89 - -0.01 2.65
American Dynamic $ 3633.63 - -14.73 0.00 The Public Sector Deposit Fund-share class 4 ♦ F 100.00 - 0.00 0.39 Franklin Emg Mkts Debt Opp SGD S$ 23.17 - 0.29 6.23 Managed Fund Bond £ 24.13 25.14 -0.02 -
Global Growth I2 Acc € 135.10 - -1.40 0.00 Index UK P-Acc £ 1.09 - -0.01 2.88
American One $ 3349.64 - -14.57 0.00 The Public Sector Deposit Fund-share class 5 ♦ F 100.00 - 0.00 0.29 Franklin Emg Mkts Debt Opp USD $ 17.98 - 0.12 6.23 Choices Wth-Pfts Lg-tm 318.40 335.20 0.00 -
Cheyne Capital Management (UK) LLP Index US A-Acc £ 1.64 - -0.02 1.41
Bond Global € 1407.38 - -2.30 0.00 Choices Wth-Pfts St-tm 270.00 284.20 0.00 -
Other International Funds Index US P-Acc £ 1.26 - -0.02 1.62
Eurocroissance € 932.48 - -8.59 0.00 Choices Managed 643.41 677.27 -0.50 -
CCLA Investment Management Ltd (UK) Cheyne European Event Driven Fund € 141.35 - -7.91 0.00 Ecclesiastical Inv Mgt Ltd (1200)F (UK)
Index World A-Acc £ 1.48 - -0.01 1.72 Franklin Templeton Investment Funds (LUX)
Asset Management
Far East $ 767.23 - -8.15 0.00 PO Box 3733, Swindon, SN4 4BG, 0845 604 4056 Choices Equity 738.40 777.26 2.54 -
Senator House 85 Queen Victoria Street London EC4V 4ET Cheyne European High Yield Fund € 136.21 - 2.45 0.00 8A rue Albert Borschette / L-1246 Luxembourg

Asset Management Asset Management

Authorised Inv Funds Index World P-Acc £ 1.20 - -0.01 1.83
Allianz Global Investors GmbH(1200) F (UK) Property & Other UK Unit Trusts www.franklintempleton.co.uk UK freephone 0 800 305 306 Freedom With Pfts Long-Tm 218.70 230.20 0.00 -
199 Bishopsgate, London, EC2M 3TY,0800 073 2001 Cheyne Malacca Asia Equity Fund Class A $ 1449.88 - -36.38 0.00 Amity UK Cls A Inc 222.60 - -1.90 1.34 Japan £ 2.91 - -0.02 0.00
CBF Church of England Funds FCA Recognised Freedom With Pfts Short-Tm 196.80 207.10 0.10 -
Authorised Inv Funds BLME Asset Management (LUX) Investment Inc 1391.55 1406.95 6.33 3.78 Cheyne Multi Strategy Liquid Fund $ 128.75 - 0.36 - Amity UK Cls B Inc 222.30 - -1.90 2.10 Japan Smaller Companies £ 2.03 - -0.02 0.00 Class A Dis
OEIC BLME Sharia'a Umbrella Fund SICAV SIF Freedom Managed 371.41 390.96 -0.27 -
Investment Acc 2806.91 2837.95 12.79 - Cheyne Real Estate Credit Holdings Fund £ 145.60 - 0.85 0.00 Higher Income Cls A Inc 132.80 - -0.80 4.57 MoneyBuilder Asset Allocator £ 1.22 - -0.01 0.50 Frk Gbl R.Estate (USD) A Dis $ 9.82 - -0.10 2.39
Allianz BRIC Stars A Acc 157.40 - -3.11 1.09 Regulated Freedom Equity 425.37 447.76 1.17 -
Global Equity Inc 163.37 165.17 0.58 4.31 Cheyne Real Estate Debt Fund Class A1 £ 131.59 - 0.22 0.00 Higher Income Cls B Inc 136.50 - -0.80 4.50 MoneyBuilder Balanced £ 0.51 - 0.00 3.92 Frk High Yield $ 6.83 - -0.02 5.20
Allianz BRIC Stars C Acc 168.26 - -3.32 1.99 Income Fund - Share Class A Acc $ 1139.13 - -0.46 0.00 Corp Pens Mananged 227.14 227.14 -0.17 -
Global Equity Acc 236.29 238.91 0.84 - Cheyne Total Return Credit Fund - December 2017 Class $ 202.64 - 0.65 0.00 UK Equity Growth Cls A Inc 250.40 - -1.90 0.43 Money Builder Dividend £ 2.65 - -0.03 4.02 Frk Euro Gov. Bond € 11.17 - -0.07 1.03
Allianz Brazil Fund A Acc 56.83 - -1.06 0.37 Income Fund - Share Class B Acc $ 1158.99 - -0.46 0.00 Corp Pens Equity 241.05 241.05 0.83 -
UK Equity Inc 155.98 157.54 0.19 4.05 Cheyne Total Return Credit Fund December 2019 $ 146.94 - 13.56 - UK Equity Growth Cls B Inc 255.80 - -2.00 1.15 MoneyBuilder Growth £ 0.79 - -0.01 2.10 Frk Euro High Yield € 6.74 - -0.01 4.47
Allianz Brazil Fund C Acc 58.30 - -1.09 1.48 Income Fund - Share Class C Acc $ 1007.85 - -0.41 0.00 Corp Pens Fixed Interest 294.21 294.21 -2.08 -
UK Equity Acc 228.23 230.53 0.28 - Amity Balanced For Charities A Inc 114.00 - -0.70 5.41 MoneyBuilder Growth ISA £ 0.80 - -0.01 2.24 Frk Euro Liquid Reserve € 4.36 - 0.00 0.00
Allz Continental European A Acc 942.37 - -3.33 0.18 Income Fund - Share Class D Dis $ 1001.63 - -0.40 0.77 Corp Pens Index Linked 337.09 337.09 -2.29 -
Fixed Interest Inc 164.48 165.14 -0.34 3.96 Amity European Fund Cls A Inc 210.20 - -0.20 1.18 MoneyBuilder Income £ 0.35 - -0.01 3.24 Frk Euro Short Dur Bond Fd € 10.16 - -0.01 0.00
Allz Continental European C Acc 152.27 - -0.54 0.96 Income Fund - Share Class G Acc £ 1078.42 - -0.39 0.00 CMI Asset Mgmt (Luxembourg) SA (LUX) Corp Pens Deposit 190.55 190.55 0.00 -
Fixed Interest Acc 493.88 495.86 -1.04 - 23 route d'Arlon, L-8010 Strassen Lux 00 352 3178311 Amity European Fund Cls B Inc 212.60 - -0.10 2.01 MoneyBuilder Income -Gross £ 0.35 - -0.01 3.24 Frk Europ Corp Bond Fd € 11.36 - -0.08 1.65
Allz European Eq Inc A Inc 137.54 - -0.18 3.62 Income Fund - Share Class M Acc € 1015.35 - -0.43 0.00 Corp Pens Protector 348.34 348.34 -4.94 -
Property Fund Inc 128.21 132.51 1.29 6.51 FCA Recognised Amity Global Equity Inc for Charities A Inc 110.90 - -0.60 3.75 Multi Asset Adventurous A-Acc £ 1.40 - -0.01 0.44 Frk European Total Return € 10.14 - -0.04 1.28
Allz European Eq Inc A Acc 191.37 - -0.25 3.79 Income Fund - Share Class W DisA$ 1033.09 - -0.24 - Corp Pens UK Index Tracker £ 2.08 2.08 0.01 -
CMI Global Network Fund (u)
Property Fund Acc 226.37 233.95 2.29 - Amity International Cls A Inc 225.40 - -1.40 1.23 Multi Asset Alloc Adventurous A-Acc £ 3.94 - -0.03 2.21 Frk Global Aggr.Inv.Grd Bond Fd $ 10.41 - -0.02 0.00
Allz European Eq Inc C Acc 107.66 - -0.14 3.56 Gl Sukuk Fund - Share Class A Acc $ 1230.38 - -0.94 0.00 Regional Equity Sub Funds Guardian Linked Life Assurance Ltd
Amity International Cls B Inc 227.50 - -1.40 2.01 Multi Asset Alloc Strategic A-Acc £ 1.21 - -0.01 0.27 Frk Global Aggregate Bond Fd $ 9.88 - -0.03 1.17
Allz European Eq Inc C Inc 101.38 - -0.14 3.36 Gl Sukuk Fund - Share class B Acc £ 1096.71 1096.71 -0.80 0.00 CMI Continental Euro Equity € 31.05 - -0.50 0.82 Managed Acc £ 18.74 19.73 -0.01 -
Amity Sterling Bond Fund A Inc 108.90 - -0.40 5.16 Multi Asset Alloc Def - Gross A £ 1.13 - -0.01 0.27 Frk Global Income Fd $ 10.33 - 0.01 5.20
Allianz EcoTrends A Acc 93.53 - -0.61 0.00 CMI Pacific Basin Enhanced Equity $ 45.58 - -0.38 2.26 Equity Acc £ 34.60 36.42 0.09 -
CCLA Fund Managers Ltd (UK)
Amity Sterling Bond Fund B Inc 117.30 - -0.40 5.14 Multi Asset Alloc Def - Net A £ 1.13 - -0.01 0.24 Frk Income $ 12.60 - -0.04 3.24
Allianz EcoTrends C Acc 98.43 - -0.63 0.00 Senator House 85 Queen Victoria Street London EC4V 4ET Single Country Equity Sub Funds Fixed Interest Acc £ 16.92 17.81 -0.10 -
Bank of America Cap Mgmt (Ireland) Ltd (IRL)
Property & Other UK Unit Trusts Multi Asset Alloc Growth A £ 1.27 - -0.02 0.00 Frk US Government $ 9.42 - -0.03 1.99
Allianz Gilt Yield Fund C Inc 161.86 - -1.92 1.93 Regulated CMI Japan Enhanced Equity F ¥ 4833.61 - 9.22 0.72 International Acc £ 13.66 14.38 -0.02 -
COIF Charity Funds (UK) Frk US Liquid Reserve Inc $ 9.67 - 0.00 0.00
CMI UK Equity £ 12.80 - -0.14 1.97 Multi Asset Defensive £ 1.23 - -0.01 0.35 International S-NA Acc £ 7.02 7.39 -0.01 -
Allianz Gilt Yield Fund I Inc 167.38 - -1.98 1.93 Global Liquidity USD $ 1.00 - 0.00 0.22 Eclectica Asset Management (UK)
Investment Inc 1283.32 1297.52 -3.51 3.58
Multi Asset Defensive - Gross £ 1.23 - -0.01 0.34 Frk US Low Duration Fd $ 9.91 - -0.01 0.46
Allianz Japan A Acc 553.26 - -0.57 0.00 CMI US Enhanced Equity F $ 80.75 - 0.16 0.55 40 Dukes Place, London EC3A 7NH International S-PA Acc £ 4.24 4.46 0.00 -
Investment Acc 12093.69 12227.45 -33.08 -
Order desk: 0845 6080941 Switchboard 0870 6072555 Multi Asset Growth £ 1.43 - -0.01 0.33 Frk US Total Return $ 11.32 - -0.04 1.28
Allianz Japan C Acc 124.94 - -0.12 0.23 Index Tracking Sub Funds International S-EU Acc £ 3.42 3.60 0.00 -
Ethical Invest Inc 199.38 201.58 -0.60 3.68 Authorised Corporate Director - Capita Financial Managers
Barclays Investment Funds (CI) Ltd (JER)
Euro Equity Index Tracking € 20.87 - -0.32 1.82 MultiManager Balanced £ 1.09 - 0.00 0.56 Tem Asian Bond $ 13.45 - 0.01 2.83
Allz RiskMaster Conservative A Acc 116.78 - -1.13 0.00 Authorised Inv Funds Managed S-PR Acc £ 7.12 7.49 0.00 -
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Ethical Invest Acc 251.39 254.17 -0.77 -
Japan Index Tracking ¥ 884.77 - 1.72 0.79 Multi Asset Open Growth A-Acc £ 0.49 - 0.00 0.76 Tem Asian Growth $ 31.84 - -0.15 0.29
Allz RiskMaster Conservative C Acc 118.57 - -1.14 0.67 FCA Recognised CF Eclectica Agriculture A EUR Acc ♦ € 1.55 - -0.03 0.00 Fixed Interest S-IL Acc £ 6.39 6.73 -0.04 -
Global Equity Inc 155.62 157.34 -0.83 4.33
Bond Funds UK Eqty Index Tracking £ 16.40 - -0.18 2.72 Multi Asset Open Strategic A-Acc £ 1.27 - -0.01 1.29 Tem Emerging Markets $ 32.17 - -0.14 0.27
Allz RiskMaster Defensive A Acc 109.11 - -1.21 0.00 CF Eclectica Agriculture A GBP Acc ♦ 114.16 - -0.53 0.00 Deposit Accum £ 4.45 4.68 0.00 -
Global Equity Acc 225.11 227.59 -1.21 -
Sterling Bond F £ 0.45 - -0.01 2.53 US Eqty Index Tracking $ 59.48 - 0.14 0.76 Multi Asset Open Strategic A-Inc £ 0.31 - 0.00 2.25 Tem Emg Mkts Balanced AQdis $ 7.61 - -0.02 2.68
Allz RiskMaster Defensive C Acc 111.05 - -1.23 0.00 CF Eclectica Agriculture A USD Acc ♦ $ 1.76 - 0.01 0.00 Guardian Pensions Management Ltd
Fixed Interest Inc 133.82 134.36 -1.74 4.11
Managed Sub Funds Multi Asset Strategic £ 1.57 - -0.01 0.51 Tem Emg Mkts Bd $ 16.77 - -0.01 6.65 Pens. Managed Acc. £ 24.30 25.58 -0.02 -
Allz RiskMaster Growth A Acc 124.19 - -1.31 0.00 CF Eclectica Agriculture C EUR Acc ♦ € 1.61 - -0.02 0.30
Fixed Interest Acc 751.62 754.64 -9.77 -
Global Bond £ 1.43 - -0.01 0.89 Open World A-Acc £ 1.27 - 0.00 0.00 Tem Global $ 36.95 - 0.27 0.43 Pens. Equity Acc. £ 37.19 39.15 0.13 -
Allz RiskMaster Growth C Acc 127.47 - -1.34 0.00 CF Eclectica Agriculture C GBP Acc ♦ 118.20 - -0.55 0.35
Baring Fund Managers Ltd (1200)F (UK) Property Inc 110.26 113.96 0.06 5.79
Global Network Mgd Global Mxd £ 2.32 - -0.03 0.20 Multi Asset Income A Gross Acc £ 1.58 - 0.00 3.62 Tem Global (Euro) € 20.50 - -0.09 0.33
Allz RiskMaster Moderate A Acc 122.13 - -1.20 0.00 Dealing and Enquiries 020 7214 1004 CF Eclectica Agriculture C USD Acc ♦ $ 1.81 - 0.01 0.36
Property Acc 240.43 248.49 0.14 -
Fund Information: www.barings.com Global Equity £ 2.60 - -0.02 0.02 Multi Asset Income A Gross Inc £ 1.12 - -0.01 5.09 Tem Global Balanced $ 23.72 - 0.10 0.61
Allz RiskMaster Moderate C Acc 124.43 - -1.22 0.52 Local Authorities Property Fd (LAMIT) (UK)
Authorised Inv Funds
Bond Sub Funds Multi Asset Income A Net Acc £ 1.49 - -0.01 3.63 Tem Global Bond $ 20.79 - -0.06 2.09 HPB Assurance Ltd
Allz Sterling Total Return Fund A Inc 148.11 - -1.12 2.93 Dynamic Capital Growth Acc 681.00 720.20 -5.60 1.20 Property 274.76 295.14 2.73 4.81 Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490
CMI Euro Bond F € 45.44 - -0.56 1.82 Edinburgh Partners Limited (IRL) Multi Asset Income A Net Inc £ 1.12 - -0.01 5.10 Tem Global Bond (Euro) € 10.34 - 0.00 2.89
International Insurances
Allz Sterling Total Return Fund C Inc 148.78 - -1.12 3.59 Dynamic Capital Growth Inc 275.30 291.10 -2.20 1.21 27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143
CMI UK Bond £ 7.87 - -0.10 2.10 South East Asia £ 8.86 - -0.14 0.10 Tem Global Equity Income A(Mdis) $ 10.65 - 0.09 3.91 Holiday Property Bond Ser 1 £ 0.50 - 0.00 0.00
Allz Total Return Asian A Acc 699.80 - -13.34 1.25 Dealing - Fax only - +353 1 434 5230
Eastern Acc GBP 725.10 - -13.20 0.00
CG Asset Management Limited (IRL) CMI US Bond $ 13.11 - -0.07 1.55 FCA Recognised Special Situations £ 31.76 - -0.14 0.75 Tem Global High Yield Fd F $ 9.36 - -0.02 4.73 Holiday Property Bond Ser 2 £ 0.60 - 0.00 0.00
Allz Total Return Asian C Inc 645.32 - -12.28 1.21 Eastern Inc GBP 711.50 - -13.00 0.00 Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland Currency Reserve Sub Funds Edinburgh Partners Opportunities Fund PLC Strategic Bond £ 0.32 - 0.00 3.09 Tem Global Income $ 14.76 - 0.04 1.66
Allz UK Corporate Bond A Inc 104.79 - -0.78 3.87 Europe Select Inc GBP 2703.00 - 1.00 0.58 00 353 1 434 5098
CMI Euro Currency Reserve € 24.93 - 0.00 0.65 European Opportunities I EUR € 2.89 - 0.01 2.00 Tem Global Smaller Cos $ 36.23 - 0.23 0.00
FCA Recognised Strategic Bond Gross £ 0.32 - 0.00 3.09
Allz UK Corporate Bond C Inc 105.55 - -0.23 3.47 European Growth Inc 1099.00 1158.00 -2.00 1.32 European Opportunities I GBP £ 2.12 - 0.03 2.19 Hamon Investment Group
Capital Gearing Portfolio Fund Plc £ 26742.57 26742.57 186.43 0.62 CMI Stlg Currency Reserve £ 4.93 - 0.00 0.96 Target 2015 £ 0.50 - -0.01 0.26 Tem Global Total Return $ 17.54 - -0.04 3.44
Allz UK Equity Income A Inc 296.84 - -2.79 4.35 German Growth Acc GBP 610.80 - 0.20 0.28 Other International Funds
CMI US Dllr Currency Reserve $ 9.80 - 0.00 0.50 European Opportunities I USD $ 3.28 - 0.06 1.79 Tem Latin America $ 48.72 - -0.46 0.91
CG Portfolio Fund Plc Target 2015 - Gross £ 0.51 - 0.00 0.30 Asian Market Leaders - USD $ 30.02 - -0.39 0.00
Allz UK Equity Income C Inc 106.49 - -1.00 2.93 German Growth Inc GBP 562.40 - 0.20 0.28 European Opportunities A EUR € 2.83 - 0.01 1.39
Real Return Cls A £ 170.82 170.82 2.73 2.34 CMI Access 80% Gu F € 5.68 - -0.02 0.00 Target 2020 £ 0.59 - 0.00 0.48 Class A Acc
Allianz UK Growth A Acc 4663.09 - -38.88 1.53 Asian Market Leaders - GBP £ 15.31 - -0.18 0.00
Strategic Bond Inc 117.80 123.80 -0.20 1.90 Global Opportunities I USD $ 1.82 - 0.02 1.91 Frk Biotech Discovery $ 37.06 - 0.34 0.00
Dollar Fund Cls D £ 132.23 132.23 2.57 1.59 Target 2025 £ 1.39 - -0.01 0.26
Allianz UK Growth C Acc 108.15 - -0.90 1.22 Greater China - USD $ 14.44 - -0.08 0.00
Global Growth Inc 398.20 419.40 -2.60 0.00 Global Opportunities I GBP £ 1.19 - 0.01 1.79 Frk Brazil Opportunities Fd $ 10.24 - 0.01 0.00
Capital Value Fund Cls V £ 130.54 130.54 0.91 0.27 Target 2030 £ 1.49 - -0.01 0.23
Allianz UK Unconstrained C Acc 106.92 - -0.86 0.68 Cohen & Steers SICAV (LUX) Greater China - GBP £ 5.95 - -0.02 0.00
Japan Growth Acc 142.70 150.30 -0.50 0.25 Global Opportunities I EUR € 1.61 - -0.01 1.84 Frk Euro S-Term Money Mkt Fd € 1011.77 - -0.01 0.00
Regulated UK Select £ 2.52 - -0.04 0.83 Selected Asian P'folio $ 54.83 54.84 -0.30 0.00
Allianz UK Unconstrained A Acc 222.03 - -1.78 0.79 Korea Acc 285.90 303.00 -3.30 0.00 Global Opportunities A GBP £ 1.12 - 0.01 1.35 Frk Euroland Fund € 21.17 - 0.13 0.00
European Real Estate Securities € 22.2565 - -0.4553 1.13 UK Growth £ 3.81 - -0.04 0.00
Allianz UK Index C Acc 1891.87 - -20.24 2.73 Multi Asset A Acc ... C 162.40 - -0.80 1.43 Pan European Opportunities I EUR € 1.77 - 0.01 - Frk European Growth € 16.69 - -0.02 0.00
Europ.RealEstate Sec. IX € 29.2986 - -0.5993 0.00 UK Smaller Companies £ 2.13 - -0.01 0.18
Allianz UK Index C Inc 1324.41 - -14.20 2.28 Multi Asset A Inc ... C 155.40 - -0.70 1.44 Frk European Sml Mid Cap Gth € 37.50 - -0.19 0.00
Gbl RealEstate Sec. I $ 11.0158 - -0.0846 1.18 WealthBuilder A Acc £ 1.08 - 0.00 0.58 Hargreaves Lansdown Fd Mgrs (1100)F (UK)
Allianz UK Mid Cap A Acc 4166.23 - -65.57 0.79 UK Growth Inc 260.20 275.20 -2.70 1.28 Frk Gbl Equity Strategies Fd $ 11.82 - 0.02 0.00 PO Box 55736, 50 Bank Street, Canary Wharf London E14 1BT
Gbl RealEstate Sec. IX $ 12.8979 - -0.0991 0.00 Fidelity PathFinder
Allianz UK Mid Cap Fund C Acc 4241.56 - -66.66 1.50 Enquiries 0117 90090000
Charity Fund Frk Gbl Fundamental Strat Fd $ 13.59 - 0.06 0.00
Fidelity PathFinder Foundation 1 Gross Acc (clean) £ 1.10 - -0.01 - www.hl.co.uk
Allianz US Equity A Acc 418.06 - -2.33 0.00 0800 032 6347 (charity enquiries)
Fidelity PathFinder Foundation 1 Acc (clean) £ 1.10 - -0.01 - Frk Global Conver.Securities $ 12.13 - 0.02 0.00 Authorised Inv Funds
Targeted Return Fund Acc 150.40 151.30 -0.90 3.09
Allianz US Equity C Acc 193.50 - -1.07 0.63 Canada Life Investments (UK)
Frk Global Growth $ 14.85 - 0.06 0.00 Hargreaves Lansdown Funds
Fidelity PathFinder Foundation 2 Acc (clean) £ 1.12 - -0.01 -
Yield expressed as CAR (Compound Annual Return) Targeted Return Fund Inc 117.70 118.40 -0.80 3.16 1-6 Lombard St, London, EC3V 9JU, Dealing: 0845 606 6180 Unit Trust
Authorised Inv Funds Fidelity PathFinder Foundation 3 Acc (clean) £ 1.13 - -0.02 - Frk Global Gth & Val $ 26.40 - 0.16 0.00
All transactions to Ser A units the sell price will be used HL Multi-Manager Special Situations Trust A Acc 279.84 294.56 0.46 0.38
Asia Pacific B Acc 978.49 - -7.91 0.79 Fidelity PathFinder Foundation 4 Acc (clean) £ 1.16 - -0.02 - Frk Global Sml Mid Cap Gth $ 31.62 - 0.22 0.00
EFG Hermes HL Multi-Manager Special Situations Trust M Acc 279.84 294.56 0.46 0.38
Baring International Fd Mgrs (Ireland) (IRL) Balanced B Acc 152.37 - -1.09 0.88 DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE Fidelity PathFinder Foundation 5 Acc (clean) £ 1.23 - -0.01 - Frk Gold and Precious Mtls Fd F $ 3.97 - -0.05 0.00
Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004 HL Multi-Manager Income & Growth Trust A Acc 172.81 181.81 0.53 3.69
Amundi Funds (LUX)
Corporate Bond B Inc 206.97 - -1.67 4.01 Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com Fidelity PathFinder Focussed 1 Gross Acc (clean) £ 1.11 - -0.01 - Frk India $ 31.68 - -0.52 0.00
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 FCA Recognised HL Multi-Manager Income & Growth Trust M Acc 172.81 181.80 0.53 3.69
Comgest SA (LUX) Other International Funds
www.amundi-funds.com European B Acc 264.45 - -0.64 0.00 Fidelity PathFinder Focussed 1 Acc (clean) £ 1.11 - -0.01 - Frk Japan Fd ¥ 972.71 - -3.81 0.00
ASEAN Frontiers A GBP Inc £ 117.91 - -1.00 0.53 17 square Edouard VII - 75009 Paris, www.comgest.com HL Multi-Manager Income & Growth Trust A Inc 105.82 111.33 0.32 3.79
The EFG-Hermes Egypt Fund $ 29.93 - - 0.00
FCA Recognised Global Bond B Inc 92.41 - -0.68 2.69 Fidelity PathFinder Focused 2 Acc (Clean) £ 1.14 - -0.01 - Frk K2 Alt Strat Fd $ 10.62 - 0.02 -
Asia Growth A GBP Inc H £ 48.98 - -0.88 0.00 FCA Recognised HL Multi-Manager Income & Growth Trust M Inc 105.82 111.33 0.32 3.79
Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00
Bd. Euro Corporate AE Class - R - EUR € 18.61 - -0.13 0.00 Global Equity B Acc 620.04 - -2.67 1.60 Fidelity PathFinder Focussed 3 Acc (clean) £ 1.16 - -0.02 - Frk MENA Fund $ 7.24 - 0.01 0.00
Australia A GBP Inc £ 69.86 - -1.66 1.83 Comgest Europe F SFr 5932.26 - 7.05 0.00
Saudi Arabia Equity Fund SR 16.49 - -0.08 0.00 HL Multi-Manager Balanced Managed Trust A Acc 191.61 201.53 0.21 0.93
Bd. Global AU Class - R - USD $ 25.84 - -0.10 0.00 Global Equity Income B Inc 126.62 - -0.93 3.99 Fidelity PathFinder Focussed 4 Acc (clean) £ 1.19 - -0.01 - Frk Mutual Beacon $ 74.12 - 0.12 0.00
Baring China Bond Fund $ 10.35 - -0.01 0.00 HL Multi-Manager Balanced Managed Trust M Acc 191.61 201.53 0.21 0.93
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 Global High Yield Bond B Inc 101.16 - -0.20 4.63 Fidelity PathFinder Focussed 5 Acc (clean) £ 1.21 - 0.00 - Frk Mutual European EUR € 26.19 - 0.08 0.00
Baring Emerging Markets Corporate Debt Fund $ 9.54 - -0.01 0.00 HL Multi-Manager Equity & Bond Trust A Inc 112.88 118.63 0.09 2.30
Eq. Emerging World AU Class - R - USD $ 95.29 - -0.38 0.00 Comgest SA (FRA)
Frk Mutual Gbl Disc $ 18.64 - 0.11 0.00
Baring European Opportunities Fund Class A EUR Acc € 13.77 - -0.23 0.00 Global Infrastructure B Acc 120.36 - -1.75 1.22
17 square Edouard VII - 75009 Paris
Electric & General (1000)F (UK) Fidelity PathFinder Freedom 1 Gross Acc (clean) £ 1.09 - -0.01 -
HL Multi-Manager Equity & Bond Trust M Inc 112.88 118.63 0.09 2.30
Eq. Greater China AU Class - R - USD $ 691.50 - 2.51 0.00 Global Resource B Acc 94.42 - -0.66 0.11 Stuart House St.John's Street Peterborough PE1 5DD Fidelity PathFinder Freedom 2 Acc (clean) £ 1.10 - -0.01 - Frk Natural Resources Fd F $ 7.87 - -0.05 0.00
Baring Global Mining Fund - Class A GBP Inc £ 5.17 - -0.07 0.44 FCA Recognised
Orders & Enquiries: 0845 850 0255 HL Multi-Manager Equity & Bond Trust A Acc 151.25 158.95 0.12 2.26
Eq. Latin America AU Class - R - USD $ 423.76 - -3.32 0.00 Japan B Acc 53.76 - -0.14 0.60 Comgest Magellan € 22.52 - -0.28 0.00 Fidelity PathFinder Freedom 1 Acc (clean) £ 1.09 - -0.01 - Frk Real Return Fd F $ 10.44 - -0.01 0.00
Dynamic Emerging Markets A GBP Acc F £ 10.08 - -0.17 0.00 Authorised Inv Funds HL Multi-Manager Equity & Bond Trust M Acc 151.25 158.95 0.12 2.26
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.87 - -0.01 0.00 Portfolio III B Acc 108.10 - -0.77 2.06 Authorised Corporate Director - Carvetian Capital Management Fidelity PathFinder Freedom 3 Acc (clean) £ 1.11 - 0.00 - Frk Strategic Income Fd $ 14.79 - -0.03 0.00
Eastern Europe A GBP Inc £ 44.62 - -1.12 1.56 HL Multi-Manager Strategic Bond Trust A Acc 168.58 173.78 -0.33 1.74
Portfolio IV B Acc 110.81 - -0.75 2.15 Electric&General Net Income A 146.90 - -0.60 1.95 Fidelity PathFinder Freedom 4 Acc (clean) £ 1.13 - 0.00 - Frk Technology $ 11.50 - 0.06 0.00
Emerging Mkt Debt LC A GBP Hedged Inc £ 8.21 - -0.06 6.52
Comgest AM International Ltd (IRL) HL Multi-Manager Strategic Bond Trust M Acc 168.58 173.78 -0.33 1.74
Portfolio V B Acc 112.51 - -0.71 1.29 Fidelity PathFinder Freedom 5 Acc (clean) £ 1.18 - -0.01 - Frk U.S. Focus Fund $ 17.70 - 0.09 0.00
The Antares European Fund Limited Emerging Opportunities A GBP Inc H £ 20.42 - -0.33 0.00 46 St Stephen's Green, Dublin 2, Ireland HL Multi-Manager Strategic Bond Trust A Inc 141.55 145.91 -0.27 1.76
Other International Portfolio VI B Acc 114.45 - -0.12 1.37 FCA Recognised Fidelity PathFinder Income 1 Income (clean) £ 1.05 - 0.00 3.70 Frk US Equity $ 25.93 - 0.14 0.00
Glb Emerging Markets A GBP Inc H £ 20.74 - -0.33 0.00 Ennismore Smaller Cos Plc (IRL) HL Multi-Manager Strategic Bond Trust M Inc 141.55 145.91 -0.27 1.76
AEF Ltd Usd (Est) $ 669.23 - 0.26 - Portfolio VII B Acc 113.88 - 0.28 1.09 Comgest Gth Asia Pac ex Jap DIS F $ 8.85 - -0.02 0.11 Fidelity PathFinder Income 1 Gross Income (clean) £ 1.05 - -0.01 4.51 Frk US Opportunities $ 12.69 - 0.04 0.00
Glb Resources A GBP Inc H £ 12.94 - -0.15 0.30 5 Kensington Church St, London W8 4LD 020 7368 4220
HL Multi Manager Emerging Markets A Acc 97.18 100.15 0.16 0.00
Comgest Gth Emerging Mkt DIS F $ 35.28 - 0.01 0.39 FCA Recognised
Asset Management
AEF Ltd Eur (Est) € 671.81 - 0.18 0.00 North American B Acc 852.73 - -0.96 0.99 Fidelity PathFinder Income 2 Income (clean) £ 1.05 - -0.01 3.57 Frk US Sml Mid Cap Gth F $ 20.75 - 0.13 0.00
High Yield Bond A GBP Hedged Inc H £ 6.88 - -0.01 6.60 HL Multi-Manager European A Acc 105.43 108.65 0.49 0.14
Hong Kong China A GBP Inc
India Fund - Class A GBP Inc
£ 725.18
£ 14.34
-
-
-7.54 0.47
-0.09 0.00
Strategic Return B Acc
Total Return B Acc
102.14
106.89
-
-
-1.94
-0.59 2.80
- Comgest Gth Europe DIS F
Comgest Gth GEM PC DIS F
€ 21.11
€ 13.72
-
-
-0.08 0.00
-0.24 0.13
Asset Management
Ennismore European Smlr Cos NAV £ 94.42
Ennismore European Smlr Cos NAV € 128.47
-
-
0.62 0.00
-0.71 0.00
Fidelity PathFinder Income 2 gross £
Fidelity PathFinder Income 2 Gross Income (clean) £
1.06
1.05
-
-
-0.01 4.50
-0.01 4.45
Frk Wrld Perspective Fd
Tem Africa
Asset Management$ 20.47
$ 10.65
-
-
0.06 0.00
-0.09 0.00
HL Multi-Manager UK Growth A Acc 107.73 111.06 0.40 0.17
Arbiter Fund Managers Limited (LUX)
UK Equity B Inc 117.13 - -1.16 1.39 Fidelity PathFinder Income 3 Income (clean) £ 1.06 - -0.01 4.05 Tem Asian Sml Comp Fd $ 41.26 - -0.44 0.00
FCA Recognised Latin America A USD Inc H $ 33.47 - -0.27 0.18
Arbiter Global Emerging Markets Fund Class A USD $ 114.50 - 0.04 0.00 UK Equity & Bond Income B Inc 243.63 - -2.36 4.23 Institutional OEIC Funds Tem BRIC $ 14.68 - -0.12 0.00 Haussmann
MENA A GBP Inc F * £ 14.20 - -0.21 0.55 Consistent Unit Tst Mgt Co Ltd (1200)F (UK) Ennismore European Smlr Cos Hedge Fd
UK Equity Income B Inc 436.72 - -4.74 4.03 America £ 4.01 - -0.05 0.39 Tem China $ 26.41 - 0.01 0.00 Other International Funds
Arbiter Global Emerging Markets Fund Class B GBP £ 105.64 - -0.01 - PO BOX 10117, Chelmsford, Essex, CM1 9JB Other International Funds
Dealing & Client Services 0845 0264281 Emerging Markets £ 3.34 - -0.07 0.48 Haussmann Cls A $ 2818.38 - 17.55 0.00
UK Government Bond B Inc 46.17 - -0.49 2.13 NAV € 463.77 - 9.27 0.00 Tem Eastern Europe € 19.89 - -0.27 0.00
Baring International Fd Mgrs (Ireland) (IRL) Authorised Inv Funds Europe £ 4.32 - -0.01 2.25 Haussmann Cls C € 2471.77 - 14.25 0.00
Tem Emerging Mkts Sml Comp Fd $ 10.87 - -0.08 0.00
Arisaig Partners Regulated Consistent UT Inc 58.92 59.62 -0.71 4.23 Haussmann Cls D SFr 1314.25 - 7.47 0.00
Fidelity Pre-Retirement Bond Fund £ 114.10 - -1.70 1.56 Tem Euroland € 21.12 - 0.10 0.00
Other International Funds China A-Share A GBP Inc £ 5.70 - 0.14 0.00 Capita Asset Services (UK) Consistent UT Acc 133.44 135.02 -1.60 4.09 Equinox Fund Mgmt (Guernsey) Limited (GSY)
Global Focus £ 2.91 - -0.03 0.50 Tem European EUR € 22.91 - 0.07 0.00
Arisaig Africa Consumer Fund Limited $ 15.69 - 0.08 0.00 40 Dukes Place, London EC3A 7NH Regulated
Practical Investment Inc 214.72 219.58 -1.50 3.63
Order Desk 08459 220044 Switchboard 0870 607 2555 Index Linked Bond £ 2.53 - -0.07 0.64 Tem Frontier Mkts Fund $ 18.64 - -0.05 0.00
Arisaig Asia Consumer Fund Limited $ 65.75 - -0.34 0.00 Equinox Russian Opportunities Fund Limited $ 114.58 117.21 0.30 0.00 Heartwood Wealth Management Limited (IRL)
Practical Investment Acc 1022.74 1045.89 -7.14 3.53
Barings (Luxembourg) (LUX) Authorised Inv Funds Index Linked Bond Gross £ 3.05 - -0.07 0.64 Tem Growth (Euro) € 16.99 - -0.06 0.00 Regulated
Arisaig Global Emerging Markets Consumer Fund $ 10.75 - 0.00 0.00
FCA Recognised CF Heartwood Cautious B Acc X 130.83 - -0.61 0.34 Index-Linked Bond Fund Gross Inc £ 11.95 - -0.29 0.64 Heartwood Caut Multi Asset B Acc 143.68 - -0.07 0.00
Tem Korea $ 5.75 - -0.05 0.00
Arisaig Global Emerging Markets Consumer UCITS € 12.22 - -0.15 0.00
Russia A GBP Inc F £ 27.34 - -0.43 0.00 CF Heartwood Cautious Income B Inc X 113.98 - -0.41 2.10 Japan £ 2.17 - -0.02 0.68 Tem Thailand $ 19.61 - 0.09 0.00
Arisaig Global Emerging Markets Consumer UCITS STG £ 11.53 - -0.01 0.00
CF Heartwood Growth B Acc X 152.18 - -0.81 0.63 Long Bond £ 0.48 - -0.01 2.84
 26 FINANCIAL TIMES Friday 5 June 2015

MANAGED FUNDS SERVICE

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

High Yield Fund Inc 44.51 - 0.01 4.67 Invesco US Value Eq Fd A $ 34.00 - 0.11 0.00 JB BF Abs Ret-EUR B € 132.10 - 0.13 0.00 Gbl.Gvt.Fdmt PA € 10.48 - -0.13 0.00 Emer Mkts Debt Lo Curr Fd A1 $ 12.44 - -0.07 0.00 Global Emerg Mkts Equity Fund X £ 12.69 - -0.22 0.47
High Yield Fund Inc (Gross) 44.58 - 0.01 4.67 Invesco USD Reserve A $ 87.02 - 0.00 0.00 JB BF Abs Ret Pl-EUR B € 130.97 - 0.18 0.00 Gbl.Gvt.Fdmt.(CHF) PA SFr 22.13 - 0.02 0.00 Emerging Markets Debt A1 $ 33.88 - -0.09 0.00 Series 2 (Investment Management customers only)
Henderson Global Investors (UK) McInroy & Wood Portfolios Limited (UK) United Kingdom Equity Index Fund £ 13.58 - 0.04 2.96
Hong Kong & China Acc ♦ F 541.96 - -3.64 0.64 JB BF EM Corporate-USD B $ 109.51 - -0.19 0.00 Gbl.Gvt.Fdt.SH (CHF) PA SFr 26.48 - -0.16 0.00 Emerging Markets Eq.A1 $ 11.84 - -0.02 0.00
PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832 Easter Alderston, Haddington, EH41 3SF 01620 825867
www.henderson.com Income & Growth Acc ♦ F 987.87 - -8.40 3.47 JB BF EM Infl Link-USD B $ 91.82 - -0.30 0.00 Gbl.5B Fdmt (EUR) PA € 11.80 - -0.13 0.00 European Concentrated A1 € 18.74 - -0.04 0.00 Authorised Inv Funds UK Specialist Equity Inc £ 20.62 - 0.08 1.63
Authorised Inv Funds Invesco Global Asset Management Ltd (IRL)
Balanced Fund Personal Class Units 4000.80xd - -38.60 1.81 Contl Europe Spec Equity £ 17.81 - 0.07 0.57
Income & Growth Inc ♦ F 438.32 - -3.72 3.56 JB BF EM Inv Grade-USD B $ 101.55 - -0.41 0.00 Gbl.5B Fdmt (CHF) PA SFr 10.16 - 0.02 0.00 European Core Eq A1 € 32.25 - -0.10 0.00
Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
Asia Pacific Capital Growth A Acc 760.10 - -10.80 0.83 Income Fund Personal Class Units 2473.00 - -29.50 2.78 US Spec Equity Fund £ 14.68 - 0.02 0.15
Income Acc ♦ F 3238.01 - -19.14 3.09 FCA Recognised JB Emerging (EUR)-EUR B € 339.96 - -0.72 0.00 Gbl.5B Fdmt SH (USD) PA $ 11.06 - -0.05 0.00 European Res.A1 € 33.98 - -0.07 0.00
Asian Dividend Income Inc 97.30 102.68 -1.54 5.70 Emerging Markets Fund Personal Class Units 1772.80 - -29.90 2.20 Japan Specialist Fund X £ 10.68 - -0.01 0.50
Income Inc ♦ F 1828.82 - -10.81 3.16 Invesco Stlg Bd A QD F £ 2.61 - -0.01 3.44 JB Emerging (USD)-USD B $ 413.72 - -0.86 0.00 Generation Global (CHF) PA F SFr 13.34 - 0.09 0.00 European Smaller Companies A1 € 51.56 - -0.28 0.00
Cautious Managed A Acc 246.50 - -1.60 3.07 Invesco Asian Equity A $ 7.10 - -0.02 0.46 Smaller Companies Fund Personal Class Units 3738.20 - -16.10 1.66 Pacific Basin Specialist Equity Fund £ 24.77 - -0.37 1.15
Japan Acc ♦ F 335.86 - -0.42 0.28 JB BF Local EM-USD B $ 277.61 - -0.44 0.00 Generation Global (EUR) PA F € 20.85 - -0.15 0.00 European Value A1 € 36.79 - -0.27 0.00
Cautious Managed A Inc 154.70 - -1.00 3.13 Invesco ASEAN Equity A $ 101.89 - -0.04 0.38 UK Sovereign Bd Index Fund £ 10.87 - -0.12 2.59
Japanese Smlr Cos Acc ♦ F 66.51 - -0.21 0.00 JB BF Total Ret-EUR B € 99.97 - 0.35 0.00 Generation Global (USD) PA F $ 16.01 - 0.09 0.00 Global Conc.A1 $ 37.86 - 0.27 0.00
China Opportunities A Acc 960.00 - -12.20 0.34 Invesco Bond A $ 26.84 - -0.03 2.35 UK Specialist Equity Income Fund £ 11.16 - 0.03 3.52
Latin America Acc ♦ F 123.76 - -2.40 1.26 JB EF Abs Ret Eur-EUR B € 119.75 - 0.00 0.00 Global Energy (USD) PA F $ 8.96 - -0.05 0.00 Global Credit Fund $ 10.49 - -0.03 0.00
Emerging Markets Opportunities A Acc 152.60 - -2.00 0.40 Meridian Fund Managers Ltd Global Spec Inv Grade Bd Fund GBP £ 10.21 - -0.01 3.08
Latin America Inc ♦ F 104.09 - -2.02 1.27 Invesco Continental Eurp Small Cap Eqty A $ 212.95 - 2.57 0.00 JB EF Euro Value-EUR B € 212.55 - 1.84 0.00 Golden Age (CHF) PA F SFr 23.06 - 0.08 0.00 Global Energy Fund A1 $ 14.51 - -0.05 0.00 Other International Funds
European Growth A Acc 176.50 - -0.70 0.74 Invesco Emerging Markets Equity A $ 39.95 - -0.33 0.00 Inflation Lkd Sov Bd Fund £ 12.43 - -0.29 0.68
Managed Growth Acc ♦ F 171.44 - -0.95 0.76 JB EF Japan-JPY B ¥ 19319.00 - 56.00 0.00 Golden Age (EUR) PA € 15.62 - 0.06 0.00 Global Equity A1 $ 48.03 - 0.32 0.00 Global Gold & Resources Fund $ 193.87 - 10.01 -
European Selected Opportunities A Acc 1356.00 - -4.00 0.46 Invesco Emerging Markets Bond A $ 21.14 - -0.08 4.63 Global Emerg Mkts Equity Fund X £ 12.25 - -0.21 0.65
Managed Growth Inc ♦ F 142.72 - -0.79 0.76 JB EF Luxury B-EUR B € 235.04 - -0.67 0.00 Golden Age (USD) PA F $ 21.71 - 0.08 0.00 Global Equity A1 € 27.06 - -0.16 0.00 Global Energy & Resources Fund $ 47.41 - 4.80 -
European Special Situations A Acc 94.66 - -0.29 1.05 Invesco Continental European Equity A € 9.34 - -0.12 0.18 The initial charge you will pay will depend on the amount you invest
Managed Income Acc ♦ F 166.77 - -0.85 2.95 JB Ms EF Special Val. EUR/A € 153.81 - -0.13 0.71 Sh.T- Money Mkt EUR PA € 112.37 - 0.00 0.00 Global High Yield Fund $ 25.97 - -0.04 0.00
Fixed Interest Monthly Income A Inc 22.14 23.22 -0.07 5.53 **Address and Telephone number for series 1 only
Managed Income Inc ♦ F 102.98 - -0.53 3.01 Invesco Gilt A £ 14.54 - -0.19 1.53 JB Strategy Balanced-CHF/B SFr 155.89 - -0.05 0.00 Sh.T- Money Mkt CHF PA SFr 129.09 - 0.00 0.00 Global High Yield Fund € 16.80 - -0.24 0.00
Global Care Growth A Inc 213.10 - -0.50 0.11 Invesco Global Small Cap Equity A NAV $ 132.15 - 0.91 0.00 Metage Capital
Money Acc ♦ F 90.09 - 0.00 0.23 JB Strategy Balanced-EUR € 162.24 - -0.74 0.00 Sh.T- Money Mkt GBP PA £ 10.26 - 0.00 0.00 Global Multi-Asset A1 $ 16.48 - -0.02 0.00
Other International Funds
Global Equity Income A Inc 51.06 - -0.46 3.65 Invesco Global High Income A NAV $ 12.85 - -0.02 5.10
Money Acc (Gross) ♦ F 95.19 - -0.01 0.23 JB Strategy Balanced-USD/B $ 135.93 - -0.05 0.00 Sh.T- Money Mkt USD PA $ 10.30 - 0.00 0.00 Global Res.A1 $ 27.59 - 0.17 0.00 MGS -Master Series (Est) $ 226.61 - 2.15 -
Global Growth Fund 2104.17 2199.74 -9.86 0.00 Invesco Gbl R/Est Secs A GBP F F £ 7.78 - -0.15 0.88
Monthly Income Plus Acc ♦ F 301.42 - -0.98 4.58 JB Strategy Growth-CHF/B SFr 97.25 - 0.10 0.00 Sw.Fr.Bd(For) PA SFr 23.91 - -0.07 0.00 Global Total Return A1 € 17.84 - -0.21 0.00 MEMO - Master Series $ 494.19 - -0.49 0.00
Global Technology A Acc 959.10 - -6.00 0.00 Invesco Global Health Care A $ 141.22 - 0.26 0.00
Monthly Income Plus Acc (Gross) ♦ F 352.80 - -1.13 4.56 JB Strategy Growth-EUR € 123.56 - -0.51 0.00 Sw.Fr.Credit Bd(For) PA SFr 13.77 - -0.03 0.00 Inflation-Adjusted Bond A1 $ 14.00 - -0.09 0.00 MEMO - MEMV Series $ 117.28 - -0.07 0.00
Multi-Manager Absolute Return A Acc 138.60 - -0.10 0.30 Invesco Global Select Equity A $ 14.38 - 0.06 0.00
Monthly Income Plus Inc ♦ F 112.99 - -0.37 4.68 JB Strategy Inc-CHF/B SFr 122.91 - -0.07 0.00 Tactical Alpha (CHF) PA SFr 10.26 - 0.06 0.00 Japan Equity A1 $ 10.77 - 0.06 0.00
Multi-Manager Active A Acc ▲ 183.40 - -0.80 0.00 Invesco Jap Eqty Core A $ 1.99 - 0.01 0.00
Monthly Income Plus Inc (Gross) ♦ F 113.12 - -0.37 4.68 JB Strategy Inc-EUR/B € 165.08 - -0.64 0.00 Tactical Alpha (EUR) PA € 10.53 - 0.06 0.00 Latin American Equity Fd A1 $ 14.74 - -0.14 0.00
Multi-Manager Distribution A Inc 132.90 - 0.00 3.17 Invesco Japanese Equity A $ 19.59 - 0.11 0.00 Ministry of Justice Common Investment Funds (UK) New Capital Fund Management Ltd (IRL)
Pacific Acc ♦ F 1078.50 - -10.73 0.34 JB Strategy Inc-USD/B $ 151.57 - -0.08 0.00 Tactical Alpha (USD) PA $ 15.11 - 0.08 0.00 Limited Maturity A1 $ 14.05 - -0.01 0.00
Multi-Manager Diversified A Acc 80.23 - 0.04 2.22 Property & Other UK Unit Trusts Leconfield House, Curzon Street, London, W1J 5JB
Pacific Inc ♦ F 990.58 - -9.86 0.34 Invesco Korean Equity A $ 33.30 - -0.19 0.00 Technology PA € 14.42 - 0.09 0.00 Prudent Wealth Fd A1 $ 14.56 - 0.01 0.00
The Equity Idx Tracker Fd Inc 1425.00 1425.00 -7.00 2.54 FCA Recognised
Multi-Manager Global Select Acc 190.10 - -0.50 0.00 Invesco PRC Equity A $ 64.73 - 0.01 0.00
Tactical Bond Acc ♦ F 69.29 - -0.12 0.95 Technology PA $ 21.89 - 0.13 0.00 Research Bond A1 $ 16.59 - -0.06 0.00 New Capital UCITS Funds
Distribution Units
Multi-Manager Income & Growth A Acc 158.10 - 0.10 2.09 Invesco Pacific Equity A $ 53.86 - -0.06 0.16 Asia Pac Bd USD Inst Inc $ 96.21 - -0.19 3.08
Tactical Bond Inc ♦ F 60.30 - -0.11 0.96 Wld Gold Expertise PAF SFr 12.02 - -0.20 0.00 UK Equity A1 £ 8.59 - 0.03 0.00
Multi-Manager Income & Growth A Inc 146.80 - 0.10 2.12 Invesco Global Technology A $ 16.20 - 0.04 0.00 Asia Pac Bd USD Ord Inc $ 98.04 - -0.20 2.37
Tactical Bond Acc (Gross) ♦ F 71.81 - -0.13 0.95 Wld Gold Expertise PA € 9.55 - -0.16 0.00 US Conc.Growth A1 $ 15.83 - 0.09 0.00
Multi-Manager Managed A Acc 239.30 - -0.90 0.40
Tactical Bond Inc (Gross) ♦ F Invesco UK Eqty A £ 8.96 - -0.04 1.22 Mirabaud Asset Management (LUX) Asia Pac Eq EUR Ord Inc € 105.96 - -0.29 2.71
60.35 - -0.11 0.96 Wld Gold Expertise PA $ 12.63 - -0.21 0.00 US Government Bond A1 $ 16.96 - -0.06 0.00
Multi-Manager Managed A Inc 234.90 - -0.90 0.39 www.mirabaud.com, marketing@mirabaud.com
UK Aggressive Acc ♦ F 222.90 - -1.25 1.63 LO Selection Value A1 $ 22.70 - 0.11 0.00 Asia Pac Eq GBP Ord Inc £ 109.71 - -0.29 3.06
Regulated
Sterling Bond Acc 194.69 203.42 -2.80 2.79 Balanced (CHF) PA F SFr 110.34 - 0.37 0.00 Asia Pac Eq USD Ord Inc $ 110.43 - -0.29 2.51
UK Aggressive Inc ♦ F 185.63 - -1.04 1.65 Mir. Conv. Bds Eur A EUR € 138.06 - -0.28 0.00
Sterling Bond Inc 61.05 63.78 -0.88 2.83 Kames Capital ICVC (UK)
Balanced (EUR) PA F € 130.10 - -0.35 0.00 Asia Pac Eq USD Inst Acc $ 114.59 - -0.30 0.00
UK Growth Acc ♦ F 605.00 - -3.39 1.66 Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA Mir. Conv. Bds Glb A USD $ 117.20 - -0.05 0.00
Strategic Bond A Inc 128.30 - -0.40 5.43 Conservative (CHF) PA F SFr 105.64 - 0.09 0.00 MMIP Investment Management Limited (GSY)
Asia Pac Eq USD Inst Inc $ 123.47 - -0.33 3.10
UK Growth Inc ♦ F 383.84 - -2.15 1.69 0800 45 44 22 www.kamescapital.com Mir. - Eq Asia ex Jap A $ 198.28 - -0.78 0.00
Regulated
UK & Irish Smaller Companies A Acc 558.50 - -2.80 0.05 Authorised Funds Conservative (EUR) PA F € 116.61 - -0.25 0.00 Dyn Europ Eq EUR Ord Inc € 180.64 - -0.95 1.07
UK Smaller Cos Equity Acc ♦ F 867.45 - -4.98 0.55 Multi-Manager Investment Programmes PCC Limited Mir. - Eq Glb Emrg Mkt A USD $ 103.81 - -0.71 0.00
UK Absolute Return A Acc 147.90 - -0.40 0.00 Diversified Income B Acc 113.87 - -0.96 4.82 Global Allocation (GBP) PA F £ 10.30 - 0.01 0.00 Dyn Europ Eq GBP Ord Inc £ 192.41 - -1.03 1.60
UK Smaller Cos Equity Inc ♦ F 668.98 - -3.84 0.55 European Equity Fd Cl A Initial Ser € 2638.52 2649.11 13.06 0.00 Mir. - Eq Global Focus A USD $ 104.83 - 0.49 0.00
UK Alpha A Acc ♦ 119.70 - -1.10 0.93 Diversified Income B Inc 106.67 - -0.91 4.96 Growth (CHF) PA F SFr 116.06 - 0.59 0.00 Dyn Europ Eq USD Ord Inc $ 180.79 - -0.96 1.10
UK Strategic Income Acc ♦ F 188.94 - -1.04 3.26 Japanese Equity Fd Cl A Initial Ser ¥ 365209.00 366439.00 12499.00 0.00 Mir. -Eq Spain A € 29.00 - 0.07 0.00
UK Equity Income & Growth A Inc 653.70 - -3.80 3.38 Invest AD Diversified Growth A Acc 136.51 - -0.61 2.41
UK Strategic Income Inc ♦ F 141.63 - -0.78 3.34 Growth (EUR) PA F € 142.63 - -0.42 0.00 MMIP - US EQUITY CLASS A 01 June 07 Series $ 1364.73 1368.76 19.53 0.00 Mir. - Eq Swiss Sm/Mid A SFr 321.85 - 2.39 0.00 China Equity EUR Ord Acc € 188.04 - -1.07 0.00
Client services: +971 2 692 6101 clientservices@InvestAD.com
UK Index A Acc 526.10 - -5.60 2.35 Ethical Cautious Managed A Acc 168.60 - -1.28 1.68 Vantage 1500 (EUR) MA € 10.40 - -0.04 0.00 China Equity GBP Ord Acc £ 194.29 - -1.12 0.00
US Equity Acc ♦ F 569.34 - -2.52 0.00 Other International Funds Pacific Basin Fd Cl A Initial Ser $ 2509.01 2524.35 115.12 0.00 Mir. - Glb High Yield Bds A $ 111.77 - -0.09 -
UK Property A Acc 193.08 203.24 0.05 4.04 Invest AD - Iraq Opportunity Fund $ 65.75 - 1.26 0.00 Ethical Cautious Managed A Inc 139.99 - -1.06 1.70 Vantage 3000 (EUR) MA € 10.67 - -0.07 0.00 China Equity USD Ord Acc $ 190.63 - -1.09 0.00
Invesco Perpetual Funds (No Trail) UK Equity Fd Cl A Series 01 £ 2340.54 2364.75 44.05 0.00 Mir. - Glb Eq High Income A USD $ 107.35 - 0.04 0.00
UK Property A Inc 97.68 102.81 0.03 4.16 Asian (No Trail) Acc ♦ F 202.49 - -3.43 1.26 Invest AD - Emerging Africa Fund $ 1127.20 - -1.28 0.00 Ethical Corporate Bond A Acc 193.84 - -1.44 3.19 PrivilEdge China Equity USD Inst Acc $ 195.06 - -1.11 0.00
Diversified Absolute Rtn Fd USD Cl AF2 $ 1625.50 - -25.51 0.00 Mir. - Glb Strat. Bd A USD $ 107.39 - -0.15 0.00
UK Tracker A Acc 236.70 - -2.60 2.09 Asian (No Trail) Inc ♦ F 184.12 - -3.12 1.28 Invest AD - GCC Focus Fund $ 1775.32 - -0.64 0.00 Ethical Corporate Bond A Inc 110.73 - -0.82 3.18 Inc.Pt.RMB Dt.CNH PA CNH 102.17 - 0.01 -
Diversified Absolute Return Stlg Cell AF2 £ 1646.26 - -23.87 0.00 Global Val.Cr.Fd GBP Ord Inc £ 115.66 - -0.01 3.74
US Growth A Acc 783.90 - -2.70 0.00 Asian Equity Income (No Trail) Acc ♦ F 133.55 - -2.21 3.84 Ethical Equity A Acc 181.52 - -1.59 1.01 Inc.Pt.RMB Dt.SH CHF PA SFr 10.17 - 0.00 -
Global Val.Cr.Fd USD Inst Acc $ 125.56 - -0.01 0.00
Asian Equity Income (No Trail) Inc 113.81 - -1.88 3.95 High Yield Bond A Acc 118.20 - -0.22 3.68 Inc.Pt.RMB Dt.SH EUR PA € 10.22 - 0.00 -
Global Val.Cr.Fd GBP Ord Acc £ 181.14 - -0.01 0.00
Balanced Risk 6 No Trail Acc 109.13 - -1.09 0.15 High Yield Bond A Inc 54.52 - -0.10 3.68 Inc.Pt.RMB Dt.USD PA $ 10.27 - 0.00 - Manek Investment Mgmt Ltd (1000)F (UK)
Global Val.Cr.Fd USD Ord Acc $ 170.24 - -0.02 0.00
P.O.Box 100, Swindon SN1 1WR 0844 800 9401
Investment Grade Bond A Acc 157.93 - -1.23 3.05 Jenn. US Eq.Opp. USD PA $ 10.43 - 0.08 -
Asset Management
Balanced Risk 8 No Trail Acc 112.88 - -1.55 0.41 Authorised Inv Funds Global Val.Cr.Fd EUR Ord Acc € 159.02 - -0.01 0.00
Balanced Risk 10 No Trail Acc
Corporate Bond (No Trail) Acc ♦ F
116.75
163.44
-
-
-1.99 0.54
-0.62 3.83
Investment Grade Bond A Inc
Sterling Corporate Bond A Acc
116.42
69.08
-
-
-0.91 3.06
-0.52 2.90
Neubrg.Berman US Core PA
Sands US Growth PA Asset Management
$ 14.80
€ 14.26
-
-
0.07 0.00
0.08 0.00
Growth Fd Acc 60.48 64.13 0.33 0.00
Asset Management Swiss Select Equity Inst Acc
Swiss Select Equity Ord Acc
SFr 121.69
SFr 120.73
-
-
1.11 0.00
1.10 0.00
Corporate Bond (No Trail) Inc ♦ F 117.58 - -0.44 3.92 Sterling Corporate Bond A Inc 31.04 - -0.23 2.89 Sands US Growth PA $ 17.29 - 0.11 0.00 Montello Real Estate Opportunity Fund (LUX)
US Growth USD Ord Acc $ 212.74 - 1.10 0.00
JPMorgan Asset Mgmt (1200)F (UK)
Strategic Bond A Acc 181.04 - -1.11 2.10 Will.Blair Gbl. Ldrs PA € 16.33 - -0.14 0.00 Manulife Global Fund (LUX) 101 New Cavendish Street,London W1W 6XH

Asset Management
Distribution (No Trail) Acc ♦ F 170.31 - -0.99 4.07
Managemen
60 Victoria Embankment, London EC4Y 0JP Regulated US Growth EUR Ord Acc € 203.48 - 1.01 0.00
Hermes Investment Funds Plc (IRL) 31 Z.A. Bourmicht, L-8070 Bertrange, Luxembourg
Will.Blair Gbl. Ldrs PA $ 13.72 - 0.05 0.00
Asset Management
Distribution (No Trail) Inc ♦ F 114.72 - -0.66 4.14 Brokerline: 0800 727 770, Clients: 0800 20 40 20 Strategic Bond A Inc 120.70 - -0.73 2.10 www.manulife.com.hk Montello Real Estate Opportunity Fund II £ 1109.40 - 8.60 0.00 US Growth GBP Ord Acc £ 213.30 - 1.10 0.00
Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
FCA Recognised
Hermes Abs Return Credit Fund Class F Acc £ £ 1.00 1.00 0.00 -
Emerging Countries (No Trail) Acc ♦ F
Emerging Countries (No Trail) Inc ♦ F
169.68
159.93
-
-
-2.90 0.98
-2.73 0.98
Authorised Inv Funds
JPM Retail OEIC (A class unless stated)
UK Equity Absolute Return A Acc
UK Equity A Acc
Asset Management 119.65
242.27
-
-
-0.01 0.00
-2.12 1.12
FCA Recognised
Asset Management
American Growth Fund Class A F $ 30.4625 - 0.0213 0.00
US Growth USD Inst Acc
Wealthy Nat Bd EUR Inst Inc
$ 195.71
€ 112.76
-
-
1.00 0.00
-0.29 3.81
America Equity Acc 60.41 - -0.37 0.00 Lothbury Property Trust (UK) American Growth Fund Class AA F $ 1.7309 - 0.0012 0.00 Morant Wright Japan Fund PLC (IRL)
Hermes Abs Return Credit Fund Class R Acc € € 1.95 1.95 -0.02 - UK Equity Income A Acc 209.96 - -2.12 4.27
Emerging European (No Trail) Acc ♦ F 75.16 - -1.53 3.26 155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900 Wealthy Nat Bd GBP Inst Inc £ 116.61 - -0.31 3.68
America Equity Inc 60.41 - -0.37 0.00 FCA Recognised
Hermes Active UK Inflation Fund Class F Acc £ 1.24 1.24 -0.03 0.00 UK Equity Income A Inc 165.22 - -1.67 4.40 Property & Other UK Unit Trusts American Growth Fund Class AA (HKD) FHK$ 10.8114 - 0.0026 -
Emerging European (No Trail) Inc ♦ F 68.51 - -1.39 3.36 MW Japan Fund PLC A $ 26.59 - 0.17 - Wealthy Nat Bd EUR Ord Inc € 111.98 - -0.29 3.54
Asia Acc 130.60 - -1.30 0.30
Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.69 1.69 -0.03 0.00 UK Opportunities A Acc 177.65 - -1.62 0.97 Lothbury Property Trust GBP £ 1701.80 1823.15 9.22 3.34 Asian Equity Fund Class A F $ 3.4843 - -0.0287 0.36
European Equity (No Trail) Acc ♦ F 158.24 - -0.09 2.60 MW Japan Fund PLC B $ 26.88 - 0.17 - Wealthy Nat Bd GBP Ord Inc £ 117.17 - -0.31 3.44
Asia Inc 72.49 - -0.70 0.29
Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.67 3.67 -0.11 0.00 UK Smaller Companies A Acc 276.95 - -1.75 0.26 Asian Equity Fund Class AA F $ 1.1214 - -0.0092 0.00
European Equity (No Trail) Inc ♦ F 133.66 - -0.07 2.67 MW Japan Fund PLC C $ 105.47 - 0.39 - Wealthy Nat Bd USD Ord Inc $ 114.22 - -0.29 3.40
Cautious Managed Rt Acc 67.44xd - -0.50 0.12
Hermes Global Emerging Markets Fund Class F Acc £ 1.30 1.30 -0.02 0.00 Asian Small Cap Equity Fund Class AA F $ 2.4653 - -0.0427 0.00
European Equity Income (No Trail) Acc ♦ F 160.61 - -0.40 3.34 New Capital Alternative Strategies
Cautious Managed Rt Inc 59.34xd - -0.44 0.12
Hermes Global Emerging Markets Fund Class R Acc € 3.27 3.27 -0.10 0.00 Asian Small Cap Equity Fund Class AA (HKD)HK$ 9.9738 - -0.1742 - All Weather Fd USD Cls $ 122.01 - 0.47 0.00
European Equity Income (No Trail) Inc ♦ F 124.36 - -0.31 3.42
Diversified Real Ret Acc 52.58 - -0.66 1.05 Kames Capital Investment Portfolios ICVC (UK) China Value Fund Class A F $ 10.4092 - -0.0398 0.59
Hermes Global Equity Fund Class F Acc £ 1.58 1.58 -0.01 0.00
European High Income (No Trail) Acc ♦ F 168.73 - -0.67 3.26 Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA
Morant Wright Funds (Ireland) PLC (IRL) All Weather Fd EUR Cls € 109.95 - 0.36 0.00
Diversified Real Ret Inc 51.33 - -0.64 1.05 FCA Recognised
Hermes Global Equity Fund Class R Acc € 4.14 4.14 -0.08 0.00 0800 45 44 22 www.kamescapital.com China Value Fund Class AA F $ 3.2608 - -0.0125 0.40 All Weather Fd GBP Cls £ 118.39 - 0.45 0.00
European High Income (No Trail) Inc ♦ F 123.93 - -0.48 3.31
Emerging Mkts Acc 148.20 - -2.30 0.70 Authorised Funds Morant Wright Fuji Yield EUR Acc Hedged € 12.14 - 0.01 -
Hermes Global ESG Equity Fund Class F Acc £ 1.22 1.22 -0.01 0.00 Dragon Growth Fund Class A F $ 2.4230 - -0.0050 0.52 Tactical Opps USD Cls $ 175.57 - -5.88 0.00
Asset Management
Asset Asset Management
Invesco Perpetual High Yield Fund acc (No trail) 227.60 - 0.05 4.54
Emerging Mkts Inc 63.72 - -0.99 0.70 Property Income B Acc 114.54 - -0.14 - Morant Wright Fuji Yield EUR Dist Hedged € 12.08 - 0.01 -

Asset Manageme
Hermes Global High Yield Bond Fund Class F Acc £ 1.13 1.13 0.02 0.00 Dragon Growth Fund Class AA HKDHK$ 11.7268 - -0.0258 0.49
Invesco Perpetual High Yield Fund inc (No trail) 171.46 - 0.04 4.65
Emrg Mkts Inc Acc... C 55.16xd - -0.95 4.04 Property Income B Inc 108.87 - -0.13 - M & G Securities (1200)F (UK)
Management Morant Wright Fuji Yield GBP Acc Hedged £ 12.36 - 0.02 -
Tactical Opps EUR Cls € 147.09 - -5.26 0.00

set Management
Hermes Global High Yield Bond Fund Class R Acc € 2.93 2.93 0.00 0.00 PO Box 9039, Chelmsford, CM99 2XG Emerging Eastern Europe Fund Class AA F $ 1.4552 - -0.0122 0.46 Tactical Opps GBP Cls £ 165.53 - -5.09 0.00
European Opportunities (No Trail) Acc ♦ F 180.19 - -0.52 0.67

Asset Management Asset Management

Emrg Mkts Inc Inc... C 49.62xd - -0.85 4.16 Morant Wright Fuji Yield GBP Dist Hedged £ 12.14 - 0.02 -
Hermes Global Small Cap Fund Class F Acc £ £ 1.03 1.03 0.00 - www.mandg.co.uk Enq: 0800 390 390, Dealing: 0800 328 3196 Emerging Eastern Europe Fund Class A F $ 3.3889 - -0.0284 0.82
European Opportunities (No Trail) Inc ♦ F 171.00 - -0.50 0.68
Europe Acc 1095.00 - -4.00 1.42 Authorised Inv Funds Morant Wright Fuji Yield USD Acc Hedged $ 12.10 - 0.03 -
Hermes Global Small Cap Fund Class R Acc € € 2.01 2.01 -0.03 - European Growth Fund Class A F $ 11.4928 - 0.0302 1.14
European Smaller Companies (No Trail) Acc ♦ F 234.74 - 0.10 0.46
Europe Inc 63.01 - -0.25 1.42
Kames Capital VCIC (IRL) Charifund Inc 1521.40 - -15.03 4.41 Morant Wright Fuji Yield USD Dist Hedged $ 12.25 - 0.03 -
Hermes Multi Asset Inflation Fund Class F GBP Acc £ 1.03 1.03 -0.01 - 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 European Growth Fund Class AA F $ 0.8315 - 0.0021 0.55
Global Balanced Index (No Trail) Acc ♦ F 160.66 - -1.67 1.70 Charifund Acc 20423.66 - -201.73 4.28
Eur Dynamic exUK Acc 168.60 - -0.50 0.78 FCA Recognised Morant Wright Fuji Yield YEN Acc ¥ 1241.02 - 2.14 -
Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.04 1.04 0.00 0.00 Global Contrarian Fund Class AA F $ 0.9777 - -0.0029 0.00
Global Bond (No Trail) Acc ♦ F 135.46 - -0.74 1.42 M&G Corporate Bond A Acc 61.90 - -0.44 3.10
Eur Dynamic exUK £ hdg Acc 191.70 - -2.60 0.69 Absolute Return Bond B GBP Acc 1077.74 - -0.09 - Morant Wright Fuji Yield B YEN Acc ¥ 1094.78 - 2.00 -
Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.37 1.37 0.00 0.00 Global Property Fund Class AA F $ 1.0306 - -0.0079 0.73
Global Bond (No Trail) Inc ♦ F 123.18 - -0.67 1.43 M&G Corporate Bond A Inc 39.37 - -0.27 3.10
Eur Dynamic exUK Inc 77.39 - -0.25 0.77 Eq Market Neutral B Acc 1023.73 - -0.02 - Morant Wright Fuji Yield YEN Dist ¥ 1227.36 - 2.12 -
Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.34 1.34 -0.01 1.67 Global Property Fund Class AA (HKD)HK$ 9.6838 - -0.0756 -
Glbl Distribution Acc (No Trail) 108.82 - 0.34 3.52 M&G Dividend A Inc 65.08 - -0.64 3.95
Eur Smaller Cos Acc 475.60 - -0.50 0.00 Eq Market Neutral Plus B Acc 1038.54 - -0.09 - Morant Wright Sakura Fund Sterling Acc Hedged £ 15.01 - 0.06 0.00
Hermes Sourcecap EU Alpha Fund Class R Acc € 3.30 3.30 -0.04 0.00 Global Resources Fund Class AA F $ 0.8136 - -0.0139 0.00
Glbl Distribution Inc (No Trail) 104.86 - 0.33 3.59 M&G Dividend A Acc 632.15 - -6.19 3.82
Eur Smaller Cos Inc 61.85 - -0.07 0.00 High Yield Global Bond A GBP Inc 546.03 - -0.97 3.45
Greater China Opportunities Class AA $ 1.1824 - -0.0115 -
Morant Wright Sakura Fund Euro Acc Hedged € 14.97 - 0.06 0.00 Northwest Investment Management (HK) Ltd
Hermes Sourcecap EX UK Fund Class F Acc £ 1.43 1.43 0.00 0.00
Global Equity (No Trail) acc ♦ F 221.84 - -1.04 0.94 M&G Episode Growth X Inc 53.88xd - -0.45 1.83 11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373
Fusion Balanced Acc 57.47xd - -0.06 0.00 High Yield Global Bond B GBP Inc 1134.44 - -1.98 3.95 Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1526.20 - 6.24 0.00
Hermes Sourcecap EX UK Fund Class R Acc € 3.34 3.34 -0.05 0.00 Healthcare Fund Class AA F $ 2.0153 - -0.0034 0.00 Other International Funds
Global Equity (No Trail) inc ♦ F 207.61 - -0.97 0.95 M&G Episode Income A Acc 143.08xd - -0.98 3.43
Fusion Balanced Inc 57.45xd - -0.06 0.00 Investment Grade Global Bd A GBP Inc 559.16 - -3.53 2.27 Morant Wright Sakura Fund Dollar Acc Hedged $ 14.96 - 0.06 0.00
Hermes UK Small & Mid Cap Fund Class F Acc £ 1.66 1.66 -0.02 0.00 India Equity Fund Class AA F $ 1.3588 - -0.0007 0.00 Northwest $ class $ 2524.44 - 175.73 0.00
Global Equity Income (No Trail ) Acc ♦ F 258.64 - -1.54 3.09 M&G Episode Income A Inc 121.06xd - -0.83 3.51
Fusion Conservative Acc 56.31xd - -0.09 0.00 Kames Global Equity Income B GBP Acc 1165.97 - -10.30 - Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 14.90 - 0.06 0.00
Hermes UK Small & Mid Cap Fund Class R Acc € 4.97 4.97 -0.10 0.00 International Growth Fund Class A F $ 4.9040 - -0.0103 0.13 Northwest Warrant $ class $ 2845.65 - 562.86 0.00
Global Equity Income (No Trail) Inc ♦ F 215.61 - -1.28 3.16 M&G Extra Income A Inc 755.52xd - -13.65 4.22
Fusion Conservative Inc 56.19xd - -0.10 0.00 Kames Global Equity Income B GBP Inc 1123.40 - -9.92 -
Hermes US SMID Equity Fund Class F Acc £ 1.66 1.66 0.01 0.00 International Growth Fund Class AA F $ 1.1261 - -0.0023 0.00
Global ex UK Core Equity Index ( No Trail) Acc ♦ F 177.13 - -1.33 1.25 M&G Extra Income A Acc 6129.79xd - -110.75 4.03
Fusion Growth Acc 59.52xd - -0.07 0.00 Strategic Global Bond A GBP Inc 1106.50 - -6.73 1.13
Hermes US SMID Equity Fund Class R Acc € 3.53 3.53 -0.04 0.00 Japanese Growth Fund Class A F $ 3.5666 - 0.0072 0.58
Global ex UK Enhanced Index ( No Trail) Acc ♦ F 207.37 - -1.37 1.65 M&G Global Basics A Inc 683.36 - -6.18 0.27
Fusion Growth Inc 59.52xd - -0.06 0.00 Strategic Global Bond B GBP Inc 627.52 - -3.85 1.63
Japanese Growth Fund Class AA F $ 0.9174 - 0.0018 0.00
Gbl Fin Cap No Trail Acc 181.29 - -0.24 4.27 M&G Global Basics A Acc 1031.61 - -9.34 0.27
Fusion Growth + Acc 61.74xd - -0.05 0.00
Latin America Equity Fund Class AA F $ 0.8683 - -0.0051 1.50
Gbl Fin Cap No Trail Inc 155.71 - -0.20 4.40
Hermes Property Unit Trust (UK) Fusion Growth + Inc 61.74xd - -0.06 0.00 M&G Global Dividend Fund A Acc 208.00 - -2.07 3.06
Kleinwort Benson Bank (UK) Russia Equity Fund Class AA F $ 0.4496 - -0.0093 0.00
Property & Other UK Unit Trusts Global Opportunities (No Trail) Acc ♦ F 262.82 - -1.06 0.91 M&G Global Dividend Fund A Inc 166.51 - -1.66 3.13
Fusion Income Acc...C 55.26xd - -0.05 2.49
14 St. George Street, Mayfair, London W1S1FE Taiwan Equity Fund Class AA F $ 1.6826 - -0.0405 0.19
Property £ 5.46 5.79 0.03 3.08 Global Smaller Companies (No Trail) Acc ♦ F 261.43 - -0.55 0.37
Fusion Income Inc...C 52.83xd - -0.05 2.59 Dealing and enquiries: 0800 024 2400 M&G Glbl Emrgng Mkts A Acc 214.09 - -3.27 0.78
Turkey Equity Fund Class AA F $ 0.8048 - 0.0027 0.00 Morgan Stanley Investment Funds (LUX)
Global Smaller Companies (No Trail) Inc ♦ F 251.46 - -0.53 0.37 Authorised Inv Funds M&G Glbl Emrgng Mkts A Inc 206.83 - -3.17 0.79 Oasis Crescent Management Company Ltd
Global Allocation Acc 54.95 - -0.37 0.64
Unit Trust Manager/ACD - Host Capital US Bond Fund Class AA F $ 1.2136 - -0.0006 3.89 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61
Global Targeted Rets (No Trail) Acc 114.16 - 0.01 0.83 Other International Funds
Impax Asset Management (IRL) Global Allocation Inc 54.59 - -0.37 0.64 M&G Global Macro Bond Fund A Acc 107.18xd - -0.94 0.98 www.morganstanleyinvestmentfunds.com
HC KB Capital Growth A Acc 170.12 - -1.58 1.36 U.S. Bond Fund Class AA Inc F $ 0.9933 - -0.0005 - Oasis Crescent Equity Fund R 9.69 - -0.05 0.00
Norfolk House, 31 St James's Square, London, SW1Y 4JR High Income (No Trail) Acc ♦ F 178.33 - -1.25 3.28 M&G Global Macro Bond Fund A Inc 74.48xd - -0.65 0.98 FCA Recognised
Global Bond exUK Acc 246.90 - -1.50 0.72
FCA Recognised HC KB Capital Growth A Inc 159.29 - -1.49 1.38 US Bond Fund Class AA (HKD) HK$ 9.9204 - -0.0070 -
High Income (No Trail) Inc ♦ F 133.49 - -0.94 3.37 US Advantage A F $ 56.90 - -0.02 0.00
Global Bond exUK Inc 194.90 - -1.20 0.72 M&G Global High Yield Bond X Inc 50.95xd - -0.54 4.17
Env Mkts (Ire) Stl A £ 2.37 - 0.01 0.00 HC KB Enterprise Equity Income A Inc 117.11 - 0.35 3.78 U.S. Bond Fund Class AA (HKD) IncHK$ 9.8745 - -0.0063 -
Hong Kong & China (No Trail) Acc ♦ F 214.45 - -1.44 1.08 Asian Equity A F $ 48.05 - -0.25 0.00
Global Bond Opport. Acc 50.39xd - -0.12 - M&G Global High Yield Bond X Acc 118.47xd - -1.26 4.16 Oasis Global Mgmt Co (Ireland) Ltd (IRL)
Env Mkts (Ire) Euro A € 2.21 - -0.02 0.00 HC KB Enterprise Equity Income A Acc 170.17 - 0.50 3.69 U.S. Special Opportunities Fund Class AA F $ 0.9284 - -0.0014 7.00
Income & Growth (No Trail) Acc ♦ F 232.05 - -1.97 3.45 Asian Property A F $ 19.76 - -0.29 0.00 Regulated
Global Bond Opport. Inc 49.97xd - -0.12 - M&G Managed Growth X Inc 82.65xd - -0.67 0.63
Env Mkts (Ire) USD A $ 1.90 - 0.01 0.00 HC KB Endeavour Multi Asset Balanced A Acc 136.01 - -0.53 0.81 U.S. Special Opportunities Fund Class AA (HKD)HK$ 9.5989 - 0.0104 - Oasis Global Investment (Ireland) Plc
Income & Growth (No Trail) Inc ♦ F 187.86 - -1.60 3.55 Asian Property AX F £ 11.92 - -0.22 0.53
Global Eq Income £ hdg Acc... C 70.18xd - -0.50 3.74 M&G Optimal Income A Inc 144.24 - -0.17 2.17
HC KB Endeavour Multi Asset Balanced A Inc 129.26 - -0.50 0.81 U.S. Special Opportunities Fund Class AA Inc $ 0.9264 - -0.0014 - Oasis Crescent Global Short Term Income Fund $ 1.00 - 0.00 0.36
Income (No Trail) Acc ♦ F 177.53 - -1.05 3.08 Diversified Alpha Plus A F € 32.17 - 0.01 0.00
Global Eq Income £ hdg Inc ... C 50.94xd - -0.36 3.84 M&G Optimal Income A Acc 189.11 - -0.22 2.17
HC KB Enterprise Fixed Income A Acc 122.93 - -0.60 3.44 US Small Cap Equity Fund Class AA F $ 1.1775 - 0.0029 0.00 Oasis Global Equity $ 28.85 - 0.05 0.22
Income (No Trail) Inc ♦ F 132.00 - -0.78 3.15 Emerg Europ, Mid-East & Africa Eq A F € 71.04 - -0.58 0.00
INDIA VALUE INVESTMENTS LIMITED (INVIL) Global Eq Income Acc... C 73.24xd - -0.61 3.72 M&G Recovery GBP A Inc 133.28 - -0.79 0.89
Oasis Crescent Global Investment Fund (Ireland) plc
HC KB Enterprise Fixed Income A Inc 110.49 - -0.54 3.44 US Treasury Inflation-Protected Securities Fund Class AA F $ 1.2786 - 0.0039 0.06
www.invil.mu Japan (No Trail) Acc ♦ F 159.23 - -0.20 0.72 Emerging Markets Debt A F $ 78.44 - -0.24 0.00
Global Eq Income Inc ... C 64.26xd - -0.54 3.82 M&G Recovery GBP A Acc 298.20 - -1.76 0.89 Oasis Crescent Global Equity Fund $ 29.36 - 0.06 0.00
Other International Funds Japanese Smaller Companies (No Trail) Acc ♦ F 169.04 - -0.55 0.00 Emerging Markets Domestic Debt AX F £ 11.50 - -0.11 5.53
Global Equity Acc 1047.00 - -4.00 0.15 M&G Strategic Corp Bond A Inc 73.20xd - -0.34 2.83 Oasis Crescent Global High Equity Balanced Fund $ 10.04 - -0.01 0.00
NAV £ 7.57 - -0.06 0.00
Latin American (No Trail) Acc ♦ F 119.40 - -2.31 1.92 Emerging Markets Equity A F $ 37.96 - -0.17 0.00
Global Equity Inc 77.79 - -0.29 0.14 Lloyds Investment Fund Managers Limited (1000)F (JER) M&G Strategic Corp Bond A Acc 104.50xd - -0.49 2.82 Manulife Global Fund Oasis Crescent Variable Balanced Fund £ 10.68 - 0.01 -
Latin American (No Trail) Inc ♦ F 109.04 - -2.11 1.94 PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 Other International Funds Euro Bond A F € 15.53 - -0.01 0.00
Global Financials Acc 781.80 - -0.50 0.80 M&G Global Leaders GBP A Inc 203.56 - -0.57 1.34 OasisCresGl Income Class A $ 11.04 - -0.02 2.47
Other International Funds Asia Total Return Fund Class AA $ 0.9959 - -0.0029 - Euro Corporate Bond AX F £ 22.10 - 0.00 1.77
Intrinsic Value Investors (IVI) LLP (IRL) Managed Growth (No Trail) Acc ♦ F 207.46 - -1.15 1.18 M&G Global Leaders GBP A Acc 474.91 - -1.33 1.33
Global Financials Inc 44.46 - -0.03 0.81 OasisCresGl LowBal D ($) Dist $ 12.24 - 0.01 0.00
Lloydstrust Gilt £ 11.9500 - -0.2100 2.63 Asia Total Return Fund Class AA (HKD) Inc FHK$ 9.9829 - -0.0306 -
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 Managed Growth (No Trail) Inc ♦ F 190.78 - -1.06 1.19 Euro Strategic Bond A F € 43.21 - -0.02 0.00
Global High Yield Bd Mth Inc C 39.32xd - -0.07 6.22 Lloyds Investment Funds Limited M&G UK Inflation Lnkd Corp Bnd A Acc 114.69 - 0.14 0.32 OasisCresGl Med Eq Bal A ($) Dist $ 12.53 - 0.02 0.04
FCA Recognised Asia Total Return Fund Class AA Inc $ 0.9502 - -0.0028 3.18
Managed Income (No Trail) Acc ♦ F 199.51 - -1.02 2.94 European Currencies High Yield Bd A F € 22.05 - -0.05 0.00
Global High Yield Bd Acc C 101.80xd - -0.20 6.16 Euro High Income € 1.6420 - -0.0200 3.03 M&G UK Inflation Lnkd Corp Bnd A Inc 113.05 - 0.14 0.32 Oasis Crescent Gbl Property Eqty $ 9.59 - -0.06 2.14
IVI European Fund EUR € 18.73 - 0.01 0.00 Asia Value Dividend Equity Fund Class AA F $ 1.8738 - -0.0051 0.00
Managed Income (No Trail) Inc ♦ F 165.23 - -0.84 3.00 European Equity Alpha A F € 48.14 - -0.35 0.00
IVI European Fund GBP £ 18.67 - 0.18 0.98 Global High Yield Bd Inc C 39.46xd - -0.08 6.24 European £ 8.1540 - -0.0490 1.30
Monthly Income Plus (No Trail) Acc ♦ F 173.46 - -0.56 4.57 Asia Value Dividend Equity Fund Class AA Inc $ 1.1489 - -0.0034 - European Property A F € 34.66 - 0.07 0.00
Global Property Secs Acc 58.06 - -0.84 0.72 High Income £ 0.8708xd - -0.0096 5.09
Monthly Income Plus (No Trail) Inc ♦ F 111.12 - -0.36 4.67 M & G Securities Ltd (UK) Strategic Income Fund Class AA F $ 1.0839 - -0.0015 4.42 Eurozone Equity Alpha A F € 12.52 - -0.05 0.00
Global Property Secs Inc 50.33 - -0.73 0.72 International £ 4.4150 - -0.0370 1.10 Property & Other UK Unit Trusts
Pacific (No Trail) Acc ♦ F 199.63 - -1.98 0.77 Global Bond A F $ 38.75 - 0.02 0.00
Income Acc 50.67xd - -0.10 - North American £ 16.3800 - -0.0700 0.14 Charibond 123.32 - -0.85 5.24
Pacific (No Trail) Inc ♦ F 189.47 - -1.89 0.84 Global Brands A F $ 97.87 - -0.33 0.00
Income Inc 48.26xd - -0.10 - Sterling Bond £ 1.4690 - -0.0200 3.63 (Accum Units) 3556.13 - -24.37 5.24 Marlborough Fd Managers Ltd (1200)F (UK)
Tactical Bond (No Trail) Acc ♦ F 141.56 - -0.25 1.44 Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500 Global Convertible Bond A F $ 44.69 - -0.09 0.00
Japan Acc 289.70 - -2.80 0.00 UK £ 7.4610 - -0.0650 1.43 NAACIF 79.36 - -0.75 4.33
Tactical Bond (No Trail) Inc ♦ F 120.71 - -0.21 1.45 www.marlboroughfunds.com Global Property A F $ 28.79 - -0.16 0.00
Japan Inc 69.74 - -0.67 0.00 Lloyds Gilt Fund Limited (Accum Units) 6942.86 - -65.18 4.21 Authorised Inv Funds
UK Aggressive (No Trail) Acc ♦ F 182.97 - -1.03 2.12 Lloyds Gilt Fund Quarterly Share £ 1.2410 - -0.0220 2.09 Indian Equity A F $ 35.36 - -0.21 0.00 Odey Asset Management LLP (UK)
Multi-Asset Inc Mth Inc 66.58xd - -0.38 3.74 M&G Property Portfolio A Acc 128.82 135.60 0.02 3.73 Balanced 161.05 170.29 -0.28 0.05 40 Dukes Place, London, EC3A 7NH
Invesco Fund Managers Ltd (UK) UK Aggressive (No Trail) Inc ♦ F 153.96 - -0.86 2.16 Monthly Share £ 1.1920xd - -0.0220 2.09 Latin American Equity A F $ 47.65 - -0.36 0.00
Multi-Asset Inc Acc... C 87.51xd - -0.50 3.63 Property Portfolio A 119.86 126.16 0.03 3.81 Bond Income 50.66 53.61 -0.24 4.51 Order Desk: 0845 300 2106, Enquiries: 0870 607 2555
Perptual Park, Henley-On-Thames, Oxon, RG9 1HH UK Enhanced Index (No Trail) Acc ♦ F 418.17 - -5.24 3.29 Lloyds Money Fund Limited Short Maturity Euro Bond A F € 20.47 - -0.01 0.00
Multi-Asset Inc Inc... C 66.83xd - -0.38 3.73 Property Portfolio X 119.86 119.86 0.03 3.80 Authorised Corporate Director - Capita Financial Managers
Dealing: 0800 085 8571 Cash 50.14 - 0.00 0.48
UK Enhanced Index (No Trail) Inc ♦ F 265.67 - -3.34 3.37 Sterling Class £ 52.5730 - 0.0000 0.13 US Dollar Liquidity A F $ 13.03 - 0.00 0.00 Authorised Inv Funds
Investor Services: 0800 085 8677 Multi-Asset Macro Acc 63.18 - 0.03 0.00 Cautious Inc 86.31 90.86 -0.18 1.57
www.invescoperpetual.co.uk UK Growth (No Trail) Acc ♦ F 159.67 - -0.89 2.14 Lloyds Multi Strategy Fund Limited US Growth A F $ 67.79 - 0.04 0.00 CF Odey Continental European R Acc ♦ 743.88 - -3.13 0.18
Multi-Asset Macro Inc 63.18 - 0.03 0.00 Defensive A Inc 116.41 - -0.31 0.97
Authorised Inv Funds Conservative Strategy £ 1.0910xd - -0.0200 1.97 CF Odey Continental European I Acc ♦ 127.27 - -0.53 0.73
UK Growth (No Trail) Inc ♦ F 130.64 - -0.73 2.18 M & G (Guernsey) Ltd (GSY) US Growth AH F € 46.79 - 0.02 0.00
INVESCO PERPETUAL Funds Multi-Manager Growth Acc 748.70 - -4.30 0.44 Emerging Markets 249.10 - -4.03 1.53
Growth Strategy £ 1.5400xd - -0.0060 1.32 Regulated CF Odey Continental European I Inc ♦ 122.31 - -0.51 0.73
UK Smaller Companies Equity (No Trail) Acc ♦ F 281.79 - -1.62 1.00 US Growth AX F £ 44.11 - -0.16 0.00
Asian Acc ♦ F 484.27 - -8.21 0.79 Multi-Manager Growth Inc 698.80 - -3.90 0.44 The M&G Offshore Fund Range ETF Global Growth A 156.97 - -0.59 0.00
Aggressive Strategy £ 1.9370xd - 0.0070 0.00 CF Odey Opus R Inc ♦ 3965.52 - -7.01 0.00
UK Smaller Companies Equity (No Trail) Inc ♦ F 262.98 - -1.51 1.02 US Property A F $ 66.31 - -0.62 0.00
Asian Inc ♦ F 434.95 - -7.38 0.79 Natural Resources Acc 476.20 - -4.70 0.09 Corporate Bond 1310.68 1351.21 -8.98 3.04 ETF Commodity A 81.23 - -0.78 0.00
Global USD Growth Strategy $ 1.4930 - 0.0060 0.00 CF Odey Opus Fund A Accumulation 141.36 - -0.25 0.00
UK Strategic Income (No Trail) Acc ♦ F 748.83 - -4.10 3.25
Asian Equity Income Acc ♦ F 65.39 - -1.08 3.85 Natural Resources Inc 33.72 - -0.34 0.09 Dealing Daily Global Basics 2514.88 2592.66 -22.65 0.00 European Multi-Cap 273.05 - 2.08 0.20
UK Strategic Income (No Trail) Inc ♦ F 561.39 - -3.08 3.33 CF Odey Opus Fund I Acc 181.96 - -0.32 0.24
Asian Equity Income Inc ♦ F 55.71 - -0.92 3.97 New Europe Acc 145.40 - -3.70 2.49 Global Leaders 3536.44 3683.80 -9.93 1.15 Extra Income 82.53 87.33 -0.57 4.09 Morgens Waterfall Vintiadis.co Inc
US Equity (No Trail) Acc ♦ F 236.57 - -1.05 0.03 CF Odey Opus Fund I Inc 178.16 - -0.32 0.24
Balanced Risk 6 Acc 53.68 - -0.53 0.00 New Europe Inc 34.60 - -0.87 2.45 Global High Yield Bond 1001.78 1032.76 -10.60 4.14 Far East Growth A Inc 178.43 - -1.96 1.67 Other International Funds
CF Odey Absolute Return Fund Euro Hedged € 1.78 - 0.04 0.00
Balanced Risk 8 Acc 55.54 - -0.76 0.00 Portfolio Acc 208.90xd - -1.00 0.62 Global Macro Bond Fund 11186.14 11532.10 -97.33 0.97 Phaeton Intl (BVI) Ltd (Est) $ 449.28 - 5.10 0.00
Global 190.42 200.52 -0.26 0.00
CF Odey Absolute Return Fund US Dollar Hedged $ 1.65 - 0.04 0.00
Balanced Risk 10 Acc 57.45 - -0.98 0.12 Sterling Corporate Bond Acc 81.97xd - -0.67 2.40 North American Dividend Fund 164.90 171.77 -0.90 0.54 Global Bond Inc 138.57 146.63 -1.19 3.18
CF Odey Absolute Return R 300.03 - 6.86 0.00
Childrens Acc ♦ F 441.76 - -2.48 1.60 Sterling Corporate Bond Inc 51.79xd - -0.42 2.42 Optimal Income Fund 142.93 147.35 -0.17 2.16
Asset Management
High Yield Fixed Interest 75.05 79.63 -0.03 5.94
CF Odey Absolute Return I 309.61 - 7.08 0.00

set Management
Corporate Bd Acc (Gross) ♦ F 205.86 - -0.77 3.57 Strategic Bond Acc 69.33xd - -0.05 2.86 Recovery Fund Limited 'A' Participating Shares 11500.37 11979.55 -67.10 0.57 Multi Cap Income A Inc 162.99 - -0.87 4.13
CF Odey Portfolio Fund Class P Institutional Acc 108.81 - -0.16 -
Corporate Bd Inc (Gross) ♦ F
Corporate Bond Acc ♦ F
89.06
183.82
-
-
-0.34 3.67
-0.69 3.59
Asset Management Strategic Bond Inc
UK Active Index + E Acc
58.02xd
294.40
-
-
-0.04 2.87
-3.30 2.91
Asset Management
Lombard Odier Funds (Europe) S.A (LUX)
Recovery Fund Limited 'I' Participating Shares
Strategic Corporate Bond Fund
11550.04 11666.70 -67.30 1.32
132.82 138.35 -0.61 2.78
Nano-Cap Growth A Acc
Special Situations A Acc
101.3694 111.7600 0.1148
1145.74 1212.42 -4.53 0.28
-
CF Odey Portfolio Fund Class P Retail Acc 108.36 - -0.15 -
www.loim.com CF Odey Portfolio Fund I Acc 154.32 - -0.24 0.06
Corporate Bond Inc ♦ F 88.95 - -0.34 3.67 Invesco (LUX) UK Active Index + E Inc 55.52 - -0.62 2.91 Regulated UK Growth 1654.62 1723.57 -0.44 0.94 UK Multi-Cap Growth A Inc 237.82 251.66 -3.04 0.41
CF Odey Portfolio Fund I Inc 151.87 - -0.24 0.06
Distribution Acc ♦ F 111.26 - -0.65 4.08 Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 UK Dynamic Acc 165.10 - -1.70 1.29 Lombard Odier Funds
UK Micro Cap Growth A 460.34 487.13 -0.49 0.00 Natixis International Funds (Lux) I SICAV (LUX)
FCA Recognised Absolute Ret Bond (EUR) PA € 12.10 - 0.05 0.00 CF Odey Portfolio Fund R Acc 150.19 - -0.24 0.00
Distribution Acc (Gross) ♦ F 126.85 - -0.73 4.06 UK Dynamic Inc 136.20 - -1.40 1.30 US Multi-Cap Income 320.15 - -2.49 0.17 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
Invesco Management SA Absolute Ret Bond (USD) PA $ 17.74 - 0.07 0.00 CF Odey Portfolio Fund R Inc 149.94 - -0.23 0.00
Distribution Inc ♦ F 65.83 - -0.38 4.16 UK Eq & Bond Inc Acc ... C 143.80xd - -1.60 3.20 MFM - Third Party Funds FCA Recognised
Invesco Active Multi-Sector Credit Fund A € 2.97 - 0.00 0.00
All Roads (CHF) PA SFr 17.91 - -0.12 0.00 Junior Oils 101.27 107.16 -0.40 0.00 Harris Global Equity R/A (USD) $ 284.12 284.12 2.02 0.00
Distribution Inc (Gross) ♦ F 65.83 - -0.38 4.16 UK Eq & Bond Inc Inc ... C 85.05xd - -0.93 3.27
Invesco Asia Balanced A dist $ 15.71 - -0.12 3.43
All Roads (USD) PA $ 11.36 - -0.07 0.00 Junior Gold C Acc 27.72 - -0.38 0.00 Harris Concentrated US Equity H-N/A (GBP) £ 155.80 155.80 0.61 0.00
Emerging Countries Acc ♦ F 259.46 - -4.45 0.49 Invesco Asia Consumer Demand Fund A income $ 14.19 - 0.01 0.18
UK Higher Inc Acc ... C 935.90 - -10.50 3.75 Odey Asset Management LLP (CYM)
All Roads (GBP) PA £ 11.59 - -0.07 0.00 MFM Artorius Fund 147.72 - -1.31 0.18 Harris Concentrated US Equity R/D (GBP) £ 110.46 110.46 0.40 31.71 Regulated
Emerging Countries Inc ♦ F 236.06 - -4.04 0.49 UK Higher Inc Inc ... C 557.10 - -6.30 3.86
Invesco Asia Infrastructure (A) $ 14.21 - -0.16 1.37
All Roads (EUR) PA € 11.52 - -0.08 0.00 Loomis Sayles Strategic Alpha Bond Fund H-N/D(GBP) £ 100.29 100.29 -0.06 1.61 OEI MAC Inc A £ 328.71 - -13.09 0.00
Emerging European Acc ♦ F 36.21 - -0.73 2.68 UK Managed Equity Acc 69.28xd - -0.82 1.98 MFM Bowland 152.63 165.00 3.59 0.00
Invesco Asia Opportunities Equity A $ 115.14 - -0.75 0.00 MFS Investment Funds (LUX)
Alpha Japan (EUR) PA F € 12.49 - -0.05 0.00 OEI Mac Inc B £ 181.76 - -8.45 0.00
Emerging European Inc ♦ F 33.88 - -0.69 2.74 UK Managed Equity Inc 58.56xd - -0.68 2.00 MFM Hathaway Inc 107.23 112.28 -0.32 1.37
Invesco Balanced Risk Allocation Fund A € 15.32 - -0.17 0.00 FCA Recognised
Alpha Japan (CHF) PA F SFr 15.65 - -0.06 0.00 OEI MAC Inc USD $ 1764.85 - -71.63 0.00
European Equity Acc ♦ F 898.23 - -0.49 2.12 UK Smaller Cos Acc 373.90 - -2.20 0.00 Blend.Research Gb.Eq.Fd. € 107.13 - -0.87 - MFM SGWM Managed A Acc 129.09 - 0.30 0.15
Invesco Capital Shield 90 (EUR) A € 12.24 - -0.07 0.00 Natixis International Funds (Dublin) I plc (IRL)
Alpha Japan (JPY) PA F ¥ 1482.00 - -5.00 0.00 Odey European Inc EUR € 766.84 - -18.63 0.00
European Equity Inc ♦ F 759.97 - -0.42 2.16 UK Smaller Cos Inc 72.61 - -0.42 0.00 Blend.Research Gb.Eq.Fd. £ 105.78 - 0.42 - MFM Techinvest Special Situations Acc 119.89 - 1.44 0.08 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000
Invesco Emerging Europe Equity Fund A $ 8.64 - -0.09 0.00
Alpha Japan (USD) PA F $ 17.94 - -0.07 0.00 Regulated Odey European Inc A GBP £ 293.42 - -6.94 0.00
European Equity Income Acc ♦ F 78.14 - -0.19 3.35 UK Strategic Eq Inc Acc ... C 157.40xd - -1.60 3.34 Blend.Research U.S.Core Eq.Fd. ¥ 10949.00 - 33.00 - MFM Techinvest Technology Acc 394.51 - 10.29 0.00
Invesco Emerging Local Currencies Debt A Inc $ 7.77 - -0.06 6.36 Loomis Sayles Global Opportunistic Bond R/D (GBP) £ 13.61 13.61 -0.03 1.07
Alternative Beta PA F SFr 120.07 - 0.13 0.00 Odey European Inc B GBP £ 166.51 - -3.93 0.00
European Equity Income Inc ♦ F 60.48 - -0.15 3.43 UK Strategic Eq Inc Inc ... C 103.70xd - -1.00 3.45 Blend.Research Gb.Eq.Fd. $ 106.54 - 0.44 - MFM UK Primary Opportunities A Inc 337.30 - -2.36 1.31
Invesco Emerging Mkt Quant.Eq. A $ 11.08 - -0.08 0.00 Loomis Sayles High Income R/D (USD) $ 9.65 9.65 -0.01 12.85
Alternative Beta PA F € 80.81 - 0.10 0.00 Slater Investments Ltd - Investment Adviser Odey European Inc USD $ 353.24 - -8.72 0.00
European High Income Acc ♦ F 82.05 - -0.32 3.26 UK Strategic Gth Acc 115.20 - -1.30 1.14 Em.Mk.Eq.Fund Euro € 122.08 - -1.52 0.00
Invesco Energy A $ 23.16 - -0.15 0.00 Loomis Sayles Multisector Income R/D (GBP) £ 13.77 13.77 -0.02 4.28
Alternative Beta PA F $ 120.85 - 0.14 0.00 MFM Slater Growth 393.47 417.47 -0.61 0.11 Giano Capital EUR Inc € 4569.06 - -154.60 0.00
European High Income Inc ♦ F 60.26 - -0.24 3.32 UK Strategic Gth Inc 107.40 - -1.30 1.16 Em.Mk.Eq.Fund Sterling £ 105.50 - -0.04 0.00
Invesco Euro Corporate Bond Fund (A) € 17.31 - -0.04 0.00
Commodities (CHF) PA SFr 6.03 - -0.03 0.00 MFM Slater Income A Inc 160.69 - -0.78 3.58
European Opportunities Inc ♦ F 84.24 - -0.25 0.16 US Acc 733.10 - -5.40 0.00 Em.Mk.Eq.Fd.US Dollar $ 105.04 - -0.01 0.00
Invesco Euro Inflation Linked Bond A € 15.33 - -0.21 0.00
Commodities (EUR) PA € 6.10 - -0.03 0.00 MFM Slater Recovery 168.44 178.72 2.77 0.10
European Opportunities Acc ♦ F 86.26 - -0.25 0.16 Invesco Euro Reserve A € 322.89 - 0.00 0.00
US Inc 101.50 - -0.70 0.00 Em.Mk.Loc.Ccy Debt Fd.FC ¥ 8830.00 - -31.00 5.99 Natixis International Funds (UK) Odey Asset Management LLP (IRL)
Commodities (USD) PA $ 6.28 - -0.03 0.00 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000 FCA Recognised
European Smlr Cos Acc ♦ F 191.57 - 0.08 0.00 US Equity Income Acc ... C 122.20xd - -0.90 2.00 Em.Mk.Loc.Ccy Debt Fd.FD ¥ 11024.00 - -35.00 5.71
Invesco European Bond A € 7.02 - -0.09 0.00 Authorised Funds
Convertible Bd P A € 17.71 - -0.02 0.00 Odey Pan European EUR R € 358.85 - -1.98 0.00
Global Bd Acc (Gross) ♦ F 128.26 - -0.70 1.17 US Equity Income £ hdg Inc ... C 102.70xd - 0.20 2.10 Gb.Conc.Eq.Fd.Euro € 283.10 - -1.25 0.00 Marlborough International Management Limited (GSY)
Invesco European Growth Equity A € 25.27 - -0.43 0.00 H2O MultiReturns Fund N/A (GBP) $ 12.66 12.66 -0.02 1.75
Convertible Bd Asia PA F SFr 14.54 - -0.02 0.00 Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520 Odey Allegra European EUR O € 277.43 - -1.66 0.00
Global Bd Inc (Gross) ♦ F 79.45 - -0.43 1.18 US Equity Income Inc ... C 104.80xd - -0.80 2.03 Gb.Conc.Eq.Fd.Sterl.UK T £ 173.81 - 1.32 0.00
Invesco Global Absolute Return Fund A Class € 11.50 - -0.05 0.00 H2O MultiReturns Fund I/A (GBP) £ 1.28 - 0.00 1.92
Convertible Bd Asia PA F € 15.46 - -0.02 0.00 FCA Recognised Odey Allegra International EUR O € 185.24 - -1.42 0.00
Global Bond Acc ♦ F 120.65 - -0.66 1.17 US Select Acc 114.50 - -0.80 0.00 Gb.Conc.Eq.Fd.Sterling £ 263.44 - 1.99 0.00
Invesco Global Bond A Inc $ 5.52 - 0.01 0.97 Marlborough North American Fund Ltd £ 31.34 31.66 0.29 0.00 Harris Associates Global Concentrated Equity Fund N/A (GBP) £ 1.11 - -0.01 -
Convertible Bd Asia PA F $ 15.56 - -0.02 0.00 Odey Allegra Developed Markets USD I $ 135.81 - 1.57 0.00
Global Bond Inc ♦ F 79.40 - -0.44 1.18 US Select Inc 113.10 - -0.80 0.00 Gb.Conc.Eq.Fd.US $ 201.86 - 1.57 0.00
Invesco Global Equity Income Fund A $ 62.98 - 0.21 0.00 Marlborough Tiger Fund Ltd F £ 29.38 29.67 0.23 0.00 Harris Associates Global Concentrated Equity Fund I/A(GBP) £ 1.12 - -0.01 -
Emerg. Consumer (CHF) PA SFr 12.90 - -0.04 0.00 Odey Atlas Fund GBP I S £ 1.30 - 0.01 0.00
Glbl Distribution Acc 54.13 - 0.17 4.41 US Smaller Cos Acc 407.50 - 2.20 0.00 Gb.Eq.Hdg Fd.Euro IRE T € 191.16 - 0.33 0.00
Invesco Global Inc Real Estate Sec A dist $ 9.42 - -0.05 2.18 Loomis Sayles Strategic Income H-N/D (GBP) £ 0.98 - 0.00 4.42
Emerg. Consumer (EUR) PA € 13.01 - -0.04 0.00 Odey Giano European Fund EUR R € 115.33 - 0.52 0.00
Glbl Distribution Acc (Gross) 54.63 - 0.17 4.41 US Smaller Cos Inc 106.80 - 0.60 0.00 Gb.Eq.Euro Hdg Fd. € 271.09 - 0.47 0.00
Invesco Global Inv Grd Corp Bond A Dist $ 11.71 - -0.08 3.02 Loomis Sayles Strategic Income H-N/A (GBP) £ 1.06 - 0.00 4.58
Emerg. Consumer (USD) PA $ 13.01 - -0.04 0.00 Odey Naver Fund EUR I € 127.51 - -0.02 0.00
Glbl Distribution Inc 52.16 - 0.16 4.44 Invesco Global Leisure A $ 37.06 - 0.29 0.00 Gb.Eq.Fund Euro € 293.16 - -1.50 0.00 Martin Currie Fund Management Ltd (1200)F (UK) Loomis Sayles US Equity Leaders N/A (GBP) £ 1.40 - -0.01 0.27
Emerg.Eq. Risk Par.(EUR) PA € 8.99 - -0.12 0.00 Saltire Ct, 20 Castle Terrace Edinburgh Inv Ser:0808 1002125 Odey Odyssey USD I $ 170.40 - 0.15 0.00
Glbl Distribution Inc (Gross) 52.16 - 0.17 4.45 Invesco Global Smaller Comp Eq Fd A $ 59.76 - 0.36 0.00 Gb.Eq. Fd Euro IRE T € 185.37 - -0.94 0.00
JPMorgan Charity Funds (UK) Emerg. Eq. Risk Par.(USD) PA $ 7.08 - -0.01 0.00 Authorised Inv Funds Loomis Sayles US Equity Leaders I/A (GBP) £ 1.37 - -0.02 0.47
Odey Orion Fund EUR I € 132.86 - 0.07 0.00
Global Equity (acc) ♦ F 503.67 - -2.37 0.46 Invesco Global Structured Equity A $ 48.04 - -0.24 0.72 60 Victoria Embankment, London EC4Y 0JP 020 7742 9175 Gb.Eq.Fd.Sterling UK T £ 217.65 - 1.50 0.00 Martin Currie Investment Funds (OEIC)
Emerg. Loc.Cur.&Bds DH (CHF) PASFr 8.05 - -0.02 0.00 Odey Swan Fund EUR I € 91.48 - -0.75 0.00
Global Equity (inc) ♦ F 459.39 - -2.16 0.46 Invesco Global Total Ret.(EUR) Bond Fund A € 13.38 - -0.04 0.00 Property & Other UK Unit Trusts Gb.Eq.Fd.US Dollar $ 330.13 - 2.35 0.00 Class A (Retail)
Emerg.Loc.Cur.Bd.Fdt PA SFr 8.56 - -0.02 0.00 Odey European Absolute Return GBP S £ 94.95 - 0.11 0.00
Global Equity Income Acc ♦ F 125.31 - -0.75 3.10 Invesco Gold & Precious Metals A $ 4.88 - -0.05 0.00
UK Equity Fund for Charities I...C £ 2.963740 2.975260 -0.033460 3.27 Gb.Eq.Fund Sterling £ 215.42 - 1.48 0.00 Asia Pacific 123.50 - -1.50 1.04 NatWest (2230)F (UK)
Bond Fund for Charities £ 1.336970 1.343240 -0.013900 3.72 Emerg.Loc.Cur.Bd.Fdt PA € 11.70 - -0.18 0.00 PO Box 23873, Edinburgh EH7 5WJ**
Global Equity Income Inc ♦ F 104.46 - -0.62 3.18 Invesco Greater China Equity A $ 51.73 - -0.49 0.00 Gb.Val.Ex-Jap.Fd.USD $ 122.86 - 0.45 0.00 China 131.20 - -1.70 0.00
Emerg.Loc.Cur.Bd.Fdt PA $ 9.16 - -0.03 0.00 Enquiries: 0800 085 5588
Gbl Financial Capital Acc 89.16 - -0.12 4.28 Gb.Val.Ex-Japan Fd.Yen ¥ 14997.00 - 60.00 0.00 Emerging Mkts 205.60 - -3.30 0.01 Authorised Inv Funds
Invesco India Equity A $ 53.05 - -0.47 0.00 Odey Wealth Management (CI) Ltd (IRL)
Euro BBB-BB Fdt PA SFr 15.70 - -0.08 0.00
Gbl Financial Capital Inc 76.56 - -0.10 4.41 Low Volatility Gb.Eq.Fd. € 103.90 - -1.04 - European Equity Income A acc 365.50 - -1.30 3.33 Series 1(Minimum initial investment 16375,000) www.odey.com/prices
Invesco Japanese Equity Adv Fd A ¥ 4104.00 - 14.00 0.00
Euro BBB-BB Fdt PA € 12.44 - -0.06 0.00 United Kingdom Equity Index Fund £ 13.59 - 0.04 2.52 FCA Recognised
Gbl Financial Cap Acc Gross 92.82 - -0.12 4.79 Invesco Japanese Value Eq Fd A ¥ 1352.00 - 4.00 0.00 Low Volatility Gb.Eq.Fd. £ 102.59 - 0.21 - Global Alpha 143.20 - -0.80 0.27
Euro BBB-BB Fdt PA £ 10.97 - -0.06 0.00 UK Specialist Equity Inc £ 20.47 - 0.09 0.38 Odey Opportunity EUR I € 220.36 - -0.53 0.00
Gbl Financial Cap Inc Gross 76.73 - -0.10 4.97 Invesco Latin American Equity A $ 7.30 - -0.06 0.00 Low Volatility Gb.Eq.Fd. $ 103.32 - 0.23 - Global Equity Income Inc 108.20 - -0.90 3.84
Euro BBB-BB Fdt PA $ 17.65 - -0.08 0.00 Contl Europe Spec Equity £ 17.00 - 0.07 0.00
Global Opportunities Acc ♦ F 102.36 - -0.42 0.44 Invesco Nippon Small/Mid Cap Equity A ¥ 1072.00 - 4.00 0.00 Global Equity Income acc 139.30 - -1.20 3.75
Euro Credit Bd PA F € 12.90 - -0.08 0.00 US Spec Equity Fund £ 14.11 - 0.02 0.00
Global Smaller Cos Acc ♦ F 1793.43 - -3.77 0.00 Invesco Pan European Equity A EUR Cap NAV € 21.06 - -0.33 0.00 Japan Alpha 111.10 - -0.60 0.05 Omnia Fund Ltd
Euro Government Fdt PA € 12.32 - -0.10 0.00 MFS Meridian Funds SICAV (LUX) Japan Specialist Fund X £ 10.09 - -0.01 0.00 Other International Funds
Global Smaller Cos Inc ♦ F 1715.58 - -3.60 0.00 Invesco Pan European High Income Fd A € 14.29 - -0.09 1.89 North American 267.20 - -1.30 0.00
GAM Euro Inflation-Lk Fdt PA € 11.89 - -0.06 0.00
Regulated
Global Targeted Rets Acc 56.60 - 0.01 0.29 Pacific Basin Specialist Equity Fund £ 24.90 - -0.37 0.58 Estimated NAV $ 1013.95 - -11.27 0.00
Invesco Pan European Small Cap Equity A € 22.86 - -0.31 0.00 funds@gam.com, www.jbfundnet.com Absolute Return A1 € 20.05 - -0.24 0.00 European Equity Income A Inc 321.80 - -1.20 3.41
Regulated Euro Resp.Corp. Fdt PA € 18.23 - -0.12 0.00 UK Sovereign Bd Index Fund £ 10.71 - -0.13 2.59
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JB BF Abs Ret EM-USD B $ 119.27 - 0.18 0.00 Fdmt.Eq.L/S SH Sd EUR PA € 10.95 - 0.06 - Inflation Lkd Sov Bd Fund £ 12.31 - -0.28 0.68
High Yield Fund Acc (Gross) 127.82 - 0.03 4.53 Invesco US Structured Equity A $ 22.03 - -0.07 0.00 Continental European Eqty A1 € 18.57 - -0.02 0.00 Marwyn Value Investors £ 509.98 - 4.82 0.00
Fdmt.Eq.L/S SH Sd USD PA $ 10.96 - 0.07 -
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28 ★ FINANCIAL TIMES Friday 5 June 2015

MARKETS & INVESTING

Capital markets
EM squared

Japan threatens China’s edge

in big-ticket Asean projects
A tussle is heating up
between China and Japan
to secure big-ticket
infrastructure projects and
assert their influence in
Southeast Asia, writes
Gavin Bowring.
On the surface China
appears to have the upper
hand. Indonesian officials
visited Beijing in March
and secured several billion
dollars of committed
investments.
China was recently
invited to build a high-
speed rail link between
Jakarta and the nearby city
of Bandung, getting in
ahead of Japan, which had
conducted long feasibility
studies.
Meanwhile, a Chinese
plan to build a high-speed
rail link from Bangkok to
northeast Thailand has
gained momentum under
the military-led Thai
government.
Many Asean countries
still regard China as their
best strategic partner,
according to a survey by
the FT’s Asean
Confidential (see chart).
But despite the progress
of such Chinese-led
projects, and the
successful Beijing launch
of the Asian Infrastructure
Investment Bank, it is not
certain that China has the
edge over Japan in the
battle for government-to-
government regional
infrastructure deals.
China is very competitive
when it comes to
developing coal-fired
power generation projects,
but it trails its rival in most
high-tech industries on all
aspects but cost.
Japan boasts superior
technology, lower financing
interest rates and greater
experience in project
finance in the region.
As it seeks to wrest the
advantage from Beijing,
Tokyo recently announced
plans to provide an extra
$110bn for high-tech
infrastructure in Asia,
including soft loans.
China will continue using
its huge cash reserves,
global trading clout and
vast industrial capacity to
bid aggressively for
infrastructure projects
across the region.
But Japan retains an
edge in technology,
financing, and foreign
direct investment.
The battle for Asia’s
infrastructure will be long
and protracted.
www.ft.com/em2
Germany set for derivatives clearing
Debt office heeds global
regulators’ call with move
for interest rate swaps
JOE RENNISON
The office that manages German’s gov-
ernment debt issuance is set to follow
the call from global regulators for
stronger derivatives standards.
The Finanzagentur plans to push its
trades in interest rate derivatives, which
it uses to manage risk in the course of its
sales, into a centralised clearing house —
a key feature of reforms.
Clearing houses stand between users
of derivatives and are designed to
reduce the risk of losses in the event that
an entity cannot stand by its trades.
The role of clearing houses in the
over-the-counter industry has grown as
Europe dairy farmers face liquidity squeeze
With wholesale prices below
cost of production, producers
are looking for ways to hedge
regulators have tried to prevent a repeat
of the derivatives turmoil after Lehman
Brothers failed in 2008.
While sovereign entities are exempt
from the latest clearing rules, bankers
said the move by Germany might reflect
concerns about conducting swap trades
with a limited pool of counterparties
that are highly rated.
The Finanzagentur will begin clearing
interest rate swaps at Eurex, a large
clearing house where it already clears
repurchase, or repo, agreements,
according to people familiar with the
move.
“There are talks with Eurex but they
are not finished, so there is no result as
of today,” said the Finanzagentur. Eurex
declined to comment.
But the people added that the agency
was on course to begin clearing in the
third quarter of 2015.
Analysis. Commodities
Milk exports* 2015 (’000 tonnes)
1,500
The path was paved for the move last
year after the federal budget included
provisions for central clearing.
Germany will join Sweden in a minor-
ity of sovereign debt issuers that use
clearing, raising questions about why
others are not complying with rules
that they have written for banks and
investors.
“If regulators say that central clearing
is a very good idea, then why make an
exemption for sovereigns?” said Tho-
mas Olaffson, director of Sweden’s Riks-
galden, the national debt office. “I really
do not understand the logic.”
The use of interest rate derivatives
allows a sovereign to “swap” the fixed
rate of long-dated bonds into a shorter,
floating rate, minimising the chances of
the portfolio being adversely affected by
large changes in market yields.
Swaps can also be used to lock in low
‘If central interest rates in advance of future debt
clearing is auctions.
Details of the arrangement remain
a very good unclear, but the people familiar with the
idea, why situation said the German government
make an was receiving special treatment.
Direct clearing members are required
exemption to post collateral to a clearing house to
[in case of] cover losses on trades in the case of
sovereigns?’ default. They also contribute to a mutu-
alised default fund.
If the collateral posted turns out to be
too little to cover losses, the clearing
house taps into the default fund.
The Finanzagentur will not contrib-
ute to the default fund and will not take
on the risk of losses from another direct
member defaulting.
Sweden’s debt agency, which began
clearing interest rate swaps in 2012, is
prevented from contributing to the fund
by local law.

Japan’s popularity in Asean is on the rise EMIKO TERAZONO

450
Asean 5 respondents polled on their country’s best Global dairy prices have turned sour.
strategic partner Europe’s producers are feeling particu-
China Japan United States lar pain, with wholesale prices below the
cost of production for many farmers.
0 20 40 60 80 100 “It’s a big issue at the moment,” says
Indonesia Richard Potts, European policy adviser
Malaysia for the UK’s national farming union.
Whole milk powder, the global bench-
Philippines mark, is at $2,400, the lowest level since
Thailand 2009, having reached more than $6,000
Vietnam
a tonne in 2013. 180
The high prices of several years ago
were spurred by growing demand and
Rebased to remove “don’t know” responses low supplies caused by drought condi-
Source: Asean Confidential
tions, leading to increased production
90 34 23 20
and high inventories that have weighed
fastFT on demand from China.
Dairy price volatility is acute in New Zealand European Union Argentina Australia Brazil Chile US
Europe, where sellers and buyers lack * Whole milk powder

Rouble slides as fighting
resumes in Ukraine
The rouble fell further
yesterday as the bad news
kept piling up for the
Russian currency.
Having fallen more than
3 per cent on Wednesday,
the currency dropped
further in reaction to grim
news of renewed fighting
around Donetsk in eastern
Ukraine.
By late afternoon in
Moscow the rouble was
trading close to Rbs55.50
against the dollar, taking
its losses over the past
two sessions to nearly
5.5 per cent.
Nor was there much
confidence in the market
that the currency would
mount a near-term
recovery after one of the
most violent battles
between Ukraine forces
and Russian separatists
since a ceasefire was called
in February.
The attack was “bad
news for Russian assets, as
it increases the risk of
EU/US sanctions on
Russia”, wrote analysts at
Commerzbank. “Indeed,
we would not be surprised
to see the US coming out
with new sanctions if the
fighting continues. We hold
on to our cautious
dollar/rouble forecast of
56 in the short term.”
Tatiana Orlova, an
analyst at RBS, said the
news was not only bad for
rouble bulls. “The
resumption of heavy
fighting in eastern Ukraine
creates a negative
backdrop ahead of the
Opec meeting,” she said.
Further gloomy Russian
economic data have been
published in the past few
days. May manufacturing
PMI fell deeper into
contraction territory, with
the Ministry for Economic
Development estimating
that the speed of GDP
contraction had
accelerated to an annual
4.2 per cent in April from
March’s 3.4 per cent.
“We continue to believe
that the recession has not
bottomed yet,” said Ms
Orlova.
www.ft.com/fastFT
ways to hedge and manage future risk.
In the US dairy futures contracts are
traded on the CME, and New Zealand,
the leading exporter, has derivatives on
the NZX futures exchange as well as
auctions on the Global Dairy Trade plat-
form, run by Fonterra, the country’s
largest dairy exporter.
Europe is the leading producer of liq-
uid milk and the second-largest
exporter of whole milk powder. But
after years of EU price support and a
quota system that capped output, the
region lacks a marketplace that offers
price transparency and allows users to
offset risk through hedging.
Without a safety net the European
industry is hurting. “There is a lot of
pressure on the industry at the
moment,” says Kevin Bellamy, global
dairy sector analyst at Rabobank.
“Farmers are suffering and the proces-
sors are suffering.”
The need for a liquid platform has
increased during recent years as the EU
has gradually lowered its price support
floor. Brussels abolished the quota sys-
tem this year, which has raised the pros-
pect of more dairy supplies coming on to
the market.
Even in the US and New Zealand
liquidity in market-based trading of
dairy products is low compared with
for other agricultural commodities such
as grains. This is because the interna-
tional market in dairy products is rela-
tively young.
The global trade took off in the early
2000s on the back of rising demand
Whole milk powder
Average of high and low prices
($’000 per tonne)
2008 2010 2012
FT graphic Sources: USDA; RICA/FADN
‘You can’t in emerging markets, especially South-
east Asia, China and north Africa. The
just turn restructuring of New Zealand’s dairy
cows on market in 2001 also spurred interna-
and off’ tional trade.
With the internationalisation of the
Kevin Bellamy, dairy market, even small buyers and
Rabobank sellers operating on a local level feel a
greater impact from trends in global
supply and demand.
In an attempt to mitigate risk, an
increasing number of European milk
co-operatives are looking to sign
fixed-price, longer-term contracts with
their buyers.
Meanwhile, commodities exchanges
have introduced dairy contracts. Euro-
next, the Paris-based exchange, in April
introduced futures in butter, skimmed
milk powder and whey powder, and
expects trading to take place in the next
few weeks.
Frankfurt-based Eurex has trans-
ferred its dairy contracts to its commod-
EU milk price and operating costs
6
Index (2008=100)
5 Milk price
4
3 Operating costs
2 90
2015 Q2 2013
ities subsidiary, EEX, where butter,
whey powder and skim powder are
being traded.
Although interest remains high, it
will take some time for liquidity in
those contracts to take off, according to
exchange executives.
Sascha Siegel, head of agriculture at
EEX, points out that there is little his-
tory of agricultural derivative contracts
in Europe. While most food processors
— which are the main buyers — have
experience in derivatives trading, many
in the dairy sector are not used to deal-
ing in futures.
“When we started dairy derivatives,
in particular, the natural sell side had
very limited experience, if any, in on-
exchange risk management,” he says.
This situation is slowly changing. The
exchange has been encouraged by the
fact that trade has expanded to longer-
dated contracts. Transactions in its July
and October 2016 contracts were equal
120
110
100
2014 Q1
2015
in size to 100 tonnes each in butter
futures, says Mr Siegel.
Nicholas Kennedy, head of commodi-
ties business development at Euronext,
says the exchange’s milling wheat con-
tract took up to a year to gain traction.
Despite the dairy glut, analysts expect
the supply-and-demand situation to
improve towards the end of the year,
with output growth falling among the
leading producers, according to the
Dutch bank.
In the longer term, consumption
growth of dairy products is expected to
continue to rise, and by 2020 interna-
tional trade needs to increase by at least
a further 20m tonnes a year from cur-
rent levels, equivalent to the production
of New Zealand, adds Rabobank.
However, it is unclear how some of
Europe’s farmers will be able to weather
the losses until prices recover. “You
can’t just turn cows on and off,” says
Mr Bellamy.

Commodities Currencies

Biggest gold ETF relegated from global top 10 Euro’s rollercoaster ride as bond yields yo-yo
HENRY SANDERSON
The world’s largest gold exchange
traded fund, the SPDR Gold Shares, has
fallen out of the world’s top 10 ETFs
amid signs that investors are cooling on
the haven value of the metal.
Outflows for May were $902m, more
than 3 per cent of its assets, according to
ETF.com, a research firm.
As a result the fund, which became
the biggest ETF in August 2011, was
overtaken by the Vanguard FTSE Devel-
oped Markets ETF.
“The difficulty right now is that mar-
ket participation is low and liquidity is
poor,” said Joni Teves, UBS analyst.
“Gold is struggling to capture sufficient
investor interest and the fact that prices
have been trapped in a range the last few
months is not helping matters.”
Assets of SPDR Gold peaked at
$77.5bn in August 2011, according to
ETF.com.
Since then, the gold price has fallen
almost 40 per cent and this year it has
failed to find direction. Yesterday, it was
trading at $1,182 a troy ounce.
With the rally in equity markets,
investors have cooled on holding gold to
guard against financial risk or inflation.
Despite uncertainty over Greece’s
debt payments, holdings of gold-backed
ETFs tracked by Bloomberg fell to their
lowest levels since 2009 this week.
“There are more attractive perceived
safe-haven assets than gold, and many
additionally provide some economic
utility,” said Atul Lele, chief investment
officer at Deltec International.
“With the global economic recovery
remaining intact, and with financial sta-
bility having generally been restored to
credit markets, we believe the need for
safe-haven assets has diminished signif-
icantly since the financial crisis.”
The gold price does not react to uncer-
tainty and elevated risk as much as it
once did, and only significant changes to
the status quo provoke buying, accord-
ing to UBS. This could be a result of
broader gold ownership, less clear cor-
relation with equities and the dollar
during times of crisis, and market
fatigue, it said.
Still, the situation may be different in
Europe, with money flowing into gold
ETFs, according to Nitesh Shah, an ana-
lyst at ETF Securities. “While the global
story may be of outflows in Europe it’s
still somewhat strong, motivated by
some extent by the fact that the issues
are closer to home here, Greece is on our
doorstop, European investors are
exposed to Greece and they’re looking
for that exposure,” he said.
ROGER BLITZ
A rollercoaster yesterday in the euro-
dollar market sent traders scurrying
for cover, trying to make sense of vio-
lent swings that saw the single currency
roam across a range spanning 1.5 cents
before retreating to the same level it
began the trading day.
German bond yield rises fuelled an ini-
tial upswing, much as they had done
since Monday, leaving the single cur-
rency on the cusp of its biggest one-
week rally in six years.
The euro hit $1.1379, up 3.6 per cent
since the start of the week, as the
momentum behind the single currency
continued for a fourth consecutive day.
In a 90-minute period yesterday
morning, the euro was up 1.3 per cent on
the dollar in European trading. But
around lunchtime, it had fallen by
nearly the same amount, as Bund
yields came off from a peak of nearly
1 per cent.
Traders attributed some of the turn-
round to reverses in equities, as export-
ers felt the impact of the euro’s rise. Ger-
many’s Dax index was down 1 per cent.
On a data-light day, traders and strat-
egists had only one thing on their minds
— the volatile bond market.
“The move in Bunds is spectacular,”
said Ugo Lancioni, currency manager at
Neuberger Berman. He attributed some
of the fluctuation to the unwinding of
positions held by long-only fixed
income investors caught off guard by
the sharp rise in yields.
According to Steven Englander, Citi-
group’s head of G10 FX strategy, equity
declines were the trigger to the bond
yield and eurodollar switchbacks, over-
riding any influence that the favourable
eurozone data from earlier in the week
might have had on the markets.
“When the market is saying ‘no mas’
[no more] to higher yields and saying it
through equities, these things are going
up way too fast, and faster than any
expectation that the economy is picking
up,” he said.
The rise in bond yields appeared to be
fuelled yesterday by a comment from
European Central Bank president Mario
Draghi that investors should “get used
to” market volatility.
That outcome was not what the ECB
president had in mind, Mr Englander
believed.
“He intended to say the ECB had no
intention of managing market volatility.
He would probably be horrified that the
market took it as Open Sesame to
bounce from one wall to the other,” said
Mr Englander.
Friday 5 June 2015 ★★★ FINANCIAL TIMES 29

MARKETS & INVESTING

Global Overview
TRADING POST Markets update
Jamie
Chisholm
Bond market volatility unsettles S&P 500 index
Change on day 0.86%

stocks while euro stages retreat

The US Treasury market is supposed
to be the global bully, but it is dancing
to Bunds’ tune.
That’s a bit like Nelson Muntz in
The Simpsons being dominated by
Gunter, exchange student and
playground punchbag.
So the question for traders is
whether today’s US non-farm payroll
report will carry the usual heft if trends
continue to be determined by action
across the Atlantic.
That will probably depend on
whether the rapid “repositioning”
in Bunds — read “selling” — has
blown itself out.
At mid-euro session yesterday, the
10-year Bund was 0.98 per cent, having
popped 49 basis points in four days.
That left the Bund future’s 14-day
relative strength index, a momentum
gauge, at 24, below the 30 level that
supposedly marks the entrance to
oversold territory.
So a period of Bund consolidation
may be in order — particularly with the
market nearing the big round 1 per
cent yield figure, which traders will
doubtless see as providing resistance
to the up trend.
Treasuries do not need to play
catch-up. At 2.41 per cent they already
yield way more than twice what
equivalent-maturity Bunds do.
But that does not mean the rise in
US borrowing costs cannot accelerate
if the NFP report is a blockbuster and
seen as encouraging the Federal
Reserve to be more aggressive in
tightening policy. It will be surfing a
new wave. Analysts expect a net
225,000 US jobs created in May.
jamie.chisholm@ft.com
US-German 10-year bonds
spread
% points
2.0
1.5
1.0
Jun 2014 2015 Jun
Source: Thomson Reuters Datastream
Oil prices under more
pressure ahead of Opec
meeting but focus is on
Germany as 10-year
Bund yield nears 1%
DAVE SHELLOCK
Renewed volatility in global govern-
ment bond markets helped unsettle
equity prices on both sides of the Atlan-
tic, while the euro retreated from a two-
week high against the dollar following
its sharp rise this week.
News late in the European day that
Greece would not make a scheduled
€300m loan repayment to the IMF
today — instead combining four pay-
ments it has to make in June into one at
the end of the month — did little to
improve the mood on Wall Street, but
had relatively little effect on the foreign
exchange or fixed income markets.
Instead, it was moves for German
government bonds that again provided
the focus as the 10-year Bund yield rose
to within a whisker of 1 per cent — a level
not seen since September — before turn-
ing tail.
The implied 10-year borrowing cost
for the eurozone’s most important econ-
omy finally settled at 0.83 per cent,
down 5 basis points on the day — but still
up 34bp since the start of the week.
Yesterday’s late buying spree for
German debt helped push down “core”
yields elsewhere from early highs.
The 10-year US Treasury yield was
down 6bp at 2.31 per cent — having hit
2.43 per cent — while that on the 10-year
UK gilt fell 5bp to 2.03 per cent after
touching 2.18 per cent.
Japan’s 10-year yield rose 9bp to 0.51
per cent, the highest since November.
Yesterday’s initial rise for Bund yields
helped drive the euro to $1.1379 against
the dollar — the highest since May 18 —
although the single currency subse-
The future for commodities: FT.com/video
The FT’s John Authers and Greg Meyer discuss the influential
Gorton and Rouwenhorst research into commodity investment
quently eased back to $1.1240, down
0.3 per cent on the day.
The dollar index, which measures the
US currency versus a basket of peers,
ended slightly higher at 95.50 and well
off an earlier trough of 94.65.
Gold was down $8 at $1,176 an ounce.
“This week’s Bund yield rise erased 12
days of declines and the improving
spread over Treasury yields suggests the
current euro/dollar gain is a case of
eurozone data optimism as much as it is
a case of receding inflationary and
growth dynamics in the US,” said Ashraf
Laidi, chief executive at Intermarket
Strategy.
The latest bout of bond market nerves
followed remarks on Wednesday by
— Narinder Nanu/AFP/Getty Images
Mario Draghi, president of the
European Central Bank, in which he in
effect told fixed-income investors that
they must get used to increased yield
volatility, given ultra-low interest rates.
Furthermore, this week’s wild moves
have been amplified by the problem of
tight liquidity conditions in the
markets.
“The comments by Mr Draghi hinted
at the real significance of recent global
market volatility and at the ECB’s care-
ful attention to the problems of market
frictions, in what is likely to be an evolv-
ing policy reaction function from both a
monetary and macro perspective,” said
Lena Komileva at G+ Economics.
“The effects of global excess liquidity
2140
2120
2100
2080
May 2015 Jun
and the crowding-in of investors into US equities Wall Street was unsettled
one-dimensional ‘long yield, short by an early sell-off in Treasury bonds,
volatility’ trades have clashed with the which saw the 10-year yield hit its
demise of the traditional bank broker- highest since October, as participants
dealer, market-maker model under awaited today’s non-farm payrolls data
tighter regulatory rules.
“The paradox is that in a world of FTSE 100 index
ample monetary liquidity, markets are Change on day 1.31%
short of a trading liquidity hedge.” 7100
The mood of uncertainty underlying
the markets was evident in the perform- 7000
ance of equities, as participants 6900
nervously awaited the release today of
6800
the non-farm payrolls report for May in May 2015 Jun
the US.
In New York, the S&P 500 index fell UK equities Johnson Matthey led the
0.9 per cent to 2,095, leaving it 1.8 per list of FTSE 100 fallers with a drop of
cent below the record high it struck last 5.3 per cent, after the chemicals maker
month, as energy and basic materials delivered an unexpectedly cautious
fell in response to weak oil and metals outlook for the current year
prices.
Wall Street largely shrugged aside the Eurofirst 300 index
IMF’s call for the Federal Reserve to
Change on day 0.86%
delay raising interest rates until 2016. 1620
The mood was similarly cautious in 1600
Europe, where the FTSE Eurofirst 300 1580
fell 0.9 per cent to 1,557.25 — although it
1560
pulled well clear of the day’s low of
1,540.54. The Xetra Dax in Frankfurt 1540
May 2015 Jun
gave up 0.7 per cent.
Volatility was also evident again in European equities The Eurofirst 300
China’s stock markets. The Shanghai pulled off a one-month low struck
Composite index was down as much as during the session as a renewed sell-
5 per cent at one stage — echoing the off in German government bonds ran
steep falls of last week — amid renewed out of steam
worries about brokers tightening
margin requirements.
But the index recovered its poise to Nikkei 225 index
end 0.8 per cent stronger at a seven-year (’000) Change on day 0.07%
20.5
high. The Shenzhen Composite fell 0.6
per cent from a record high. 20.0
Oil prices tumbled ahead of today’s 19.5
Opec meeting in Vienna. This is
expected to confirm an output target of 19.0
May 2015 Jun
30m barrels a day.
Brent crude fell 2.8 per cent to $62.03 Japanese equities The Nikkei ended
a barrel. higher for the first session in three as
Copper fell 1.6 per cent to a six-week the market shrugged off rising
low of $5,915 a tonne in London, while Japanese government bond yields
aluminium shed 0.6 per cent.

Inmarsat value”, the broker argued. “We believe

London
FTSE 100 arrival
Inmarsat drifts on talk
of bid for US rival
Bryce Elder
Speculation of a US deal put Inmarsat in
focus yesterday. A day after its
promotion to the FTSE 100, the satellite
network operator drifted 0.5 per cent to
£10.01 amid talk that it might bid for
KVH Industries, a US-listed peer with
an enterprise value of about $220m.
“Such a deal has strategic logic and
meaningful synergies but we’d imagine
investors would see it as opportunistic
rather than imperative,” said Jefferies.
KVH is the market leader in maritime
communications with a share estimated
to be nearly twice as big as Inmarsat’s at
17.9 per cent. Buying its customers could
quickly give scale to Inmarsat’s Global
Xpress wireless broadband network,
whose global launch was pushed back
last month after a rocket failure.
But with Inmarsat debt set to peak
this year and Global Xpress yet to
Share price (pence)
1000
Jun 2014 2015 Jun
Source: Thomson Reuters Datastream
Indices
FTSE 100
Close
6859.24
FTSE 250 18090.42
FTSE 350 3801.73
FTSE All-Share 3740.39
FTSE All-Share Yield 3.34
FTSE 100 Futures 6858.50
10 yr Gilt Yield 2.53
20yr Gilt All-Share Ratio 0.81
deliver meaningful revenue,
shareholders were unlikely to welcome
an acquisition, said Jefferies.
An early sell-off in corporate bonds
set the tone for the wider market,
leading the FTSE 100 lower by 1.3 per
cent, or 91.22 points, to 6,859.24.
Royal Mail lost 4.9 per cent to 500p
after the government announced the
sale of its 30 per cent stake.
The news added to speculation that
Monday’s emergency Budget will set out
a timetable for the UK to place its 61.6
per cent stake in Royal Bank of
Scotland, up 0.7 per cent to 251.8p.
Ladbrokes, the subject of bid theories
a day earlier, rose 2.6 per cent to 125.5p
after Peel Hunt upgraded.
If the bookmaker funded marketing
with a dividend cut it “could drive a
substantial increase in shareholder
an additional £80m marketing over the Trading Directory
next three years could increase digital
900 ebitda (ex Australia) by circa 60 per
800 cent versus our base-case forecast.”
700 Peel Hunt called on Ladbrokes to
600 ditch a deal to show Sky Sports in its
shops, saving up to £9m a year.
Ladbrokes is set to deliver findings of
Day's
a strategic review on June 30.
change
-91.22
Kingfisher rose 2.7 per cent to 399.9p
on a Merrill Lynch upgrade to “neutral”.
-173.04 A benign UK consumer backdrop was
-48.14 good for like-for-like growth at B&Q, its
-46.45 DIY retailer, with store closures
- underpinning margins, said the broker.
-83.00 Johnson Matthey dropped 5.3 per
-0.29 cent to £33.31 after hopes of a cash
-
return with its full-year results proved
misplaced. Current-year guidance was
unexpectedly cautious, reflecting
pension costs and lost earnings from the
sale of its Research Chemicals business.
Moneysupermarket fell 9.9 per cent
to 275.8p after it was drawn into an
Ofgem investigation of potential
competition abuses by companies
“providing a supporting service for the
energy industry”.
Zoopla, the property website, which
had said in April that Ofgem was
investigating its proposed uSwitch
acquisition, slipped 5.3 per cent to 260p.
Steelmaker Evraz lost 5.4 per cent to
157.4p after saying that it had paused
work at its Colorado mill “to align
production with decreased demand”.
Evraz would be hit if the scandal at Fifa
resulted in the 2018 World Cup moving.
Merrill Lynch said Russia would need
3m tonnes of steel to build stadiums.

Wall Street
JM Smucker hurt by
weak coffee sales
Pan Kwan Yuk
Blame the coffee snobs. Shares in
JM Smucker suffered their biggest one-
day fall in nearly seven months
yesterday as continued weakness in
its key coffee business prompted a
39 per cent slide in annual profits.
The company, which has been
struggling with weak sales of its flagship
Folgers coffee brand amid higher
commodity prices and an artisan coffee
boom in the US, saw net profits fall to
$344.9m for the fiscal year ending on
April 30, down from $565.2m the year
before.
Within this, the jam and packaged
snacks maker swung into a loss of
$90.3m during the fourth quarter,
compared with a profit of $118.5m
during the same period last year.
Its US retail coffee business —
dominated by Folgers and Dunkin’
Donuts packaged coffee —
accounted for much of the group’s
underperformance. The unit,
Smucker’s biggest, suffered a 14 per cent
drop in profit on a 4 per cent decline in
revenues for the year. “The Folgers
brand volume decline was attributed to
consumer response to higher promoted
price points on shelf for its roast and
ground coffee offerings, competitive
activity, and reduced promotional
effectiveness,” said Smucker.
Smucker fell 3.8 per cent to $113.75,
although the stock is still up more than
11 per cent over the past 12 months.
Wynn Resorts was on a winning
streak for the third straight day. The
stock was the best performer on the S&P
500 , jumping 7.24 per cent to $109.44.
Some in the market speculate that the
moves are being driven by short
coverings. The casino operator has seen
short interest in its shares shoot to a
four-year high of 7.14m, or nearly 9 per
cent of its total share float, as Beijing’s
crackdown on graft continues to put a
damper on its key market of Macau.
T-Mobile US, which has long been
seen as a takeover target, rose 2.64 per
cent to $39.34 following a report that it is
in talks to be acquired by satellite TV
provider Dish Networks. The
companies are in “close agreement”
about what a merger would look like,
the Wall Street Journal reported. Dish
rose 4.86 per cent to $74.25 while
Verizon Communications, which stands
to lose from the potential tie-up, fell
2 per cent to $48.10.
The wider market failed to build on its
gains from Wednesday as the global
bond sell-off rattled the equities
market. The S&P 500 was down 0.86
per cent at 2,095.84. The Dow Jones
Industrial Average lost 0.94 per cent to
17,905.58, and the Nasdaq Composite
slid 0.79 per cent to 5,059.12.
30 ★ Friday 5 June 2015

INSIGHT Analysis. Equities

Ralph
Atkins
Hong Kong deals China a lesson in sobriety
As analysts talk of a mainland China stock gains outpace
Hong Kong
bubble, the Hang Seng’s rally
Why a century bond looks more sustainable
Indices (rebased)
250

is not such a long shot JOSH NOBLE — HONG KONG

Shanghai Composite
200

for Petrobras investors If you can keep your head when all
about you are losing theirs, then you
150

100
may have a future as a Hong Kong
fund manager. HSCEI
50

P
etrobras is a state oil company that was Chinese stocks have continued their May 2014 2015 Jun
engulfed last year by a multibillion-dollar brib- march higher this week, with the Shang-
ery and kickback scandal. Would global inves- hai index adding 7 per cent and Shen- Hong Kong valuations
tors lend it money for 100 years? Well, yes, they zhen 9.7 per cent over the past five days. remain low
would. Bids this week for its “century bond” Volatility has risen, as shown by yes- Price to 2015 FY earnings ratios
were more than five times the $2.5bn issued. terday’s sudden drop and swift rebound, Shenzhen
Century bonds are not unprecedented. Past big issuers while trading volumes have climbed to Composite 44.5
have included France’s EDF. In April Mexico issued 100- fresh highs. Turnover on the Shanghai Nasdaq 22.5
Shanghai 19.7
year bonds denominated in euros. Petrobras, however, has exchange last month hit $2.6tn, more Composite
extended the boundaries of corporate bond markets, than five times that on the NYSE. Nikkei 19.6
which have expanded rapidly in an era of historic borrow- Valuations have also been on the up. S&P 500 17.8
ing costs. The troubled Brazilian energy group has locked The Shanghai Composite trades at an FTSE 100 16.6
in financing until 2115 — by when the world might be using average 19.7 times current year earn- Dax 14.3
energy beamed back from Mars. ings, its highest since January 2008, Hang Seng China
Doubtless, many were left scratching their heads about while Shenzhen stocks have risen to Enterprise index 10.1
what this told us about the post-2007 crisis financial sys- 44.5 times. The ChiNext, a tech-heavy
Source: Bloomberg
tem. One wrong conclusion would be that investors acted start-up board, is up to 84 times.
crazily. True, Petrobras has problems, as does Brazil’s “The rally in the domestic markets
economy. But the bonds yielded a temptingly high 8.45 per is unbelievable — the valuations are
cent. Rather the deal highlighted how ultra-low global just not justified by fundamentals,” Enjoying the Kong; in Shanghai the same stock is territory remain the world’s cheapest HSCEI this year outstrips gains in all
interest rates and quantitative easing are reshaping the says Irene Chow, China analyst at Bank ride: retail up 8 per cent. on a simple price/earnings basis. The other leading markets outside China,
corporate debt market, breaking down bonds’ traditional Julius Baer. “It’s definitely a bubble in investors But the valuation divide has not been HSCEI trades at a p/e ratio of just 10.1, including the resurgent Nikkei 225.
role as supposedly safer alternatives to equities. the making.” account for 80% enough to draw much interest from over up from below 7 a year ago but still lower The main reason for the divergent
Investing in a bond that will not be redeemed until Yet in Hong Kong the mood is more to 90% of the border. In May, flows from Chinese than valuations on all other big global performance is simple: a completely dif-
way beyond a normal human’s lifespan might seem to subdued. The Hang Seng China Enter- mainland investors into Hong Kong declined markets. The S&P 500, for example, is ferent set of investors. Retail investors
imply reckless assumptions about the issuer’s survival prises index has fallen this week, high- trading. Many sharply, following the brief April flurry. trading at 17.8 times full-year earnings account for about a fifth of trading in
chances. The beauty of bond market mathematics, how- lighting the disconnect between the have not seen a Buy trades through the southbound estimates. Hong Kong, compared with 80-90 per
ever, means such existential questions are largely irrele- onshore and offshore markets. bear market leg of the Stock Connect sank 60 per “As valuations are relatively cheaper cent on the mainland.
vant when proper account is The Hang Seng AH premium index, a ChinaFotoPress /Getty Images
cent during the month by volume, while outside of domestic China, the Hong Domestic Chinese shares have been
taken of payments to be made gauge of price gaps between stocks that overall turnover dropped 56 per cent. Kong market might have some more driven by millions of new retail punters,
so far into the future.
Whether are dual-listed in Hong Kong and China, In Gome, the most active stock room to go up,” analysts at Schroders many of whom apparently think the
If this week an investor it is eventually shows that mainland listings are typi- through the cross-border trading link, wrote in a report. government will underwrite the rally
bought Petrobras bonds with a cally 30 per cent more expensive than there was net selling from mainland But they warned that rallies unsup- with rate cuts and other liquidity-
par value of $1,000 and used
redeemed or not their offshore counterparts. investors, while average daily volume ported by better earnings “ultimately boosting measures. Last week alone
8.45 per cent as the “discount makes scant Individual stocks look equally on the Hong Kong exchange fell to fall under their own weight”. 4.4m stock trading accounts were
rate”, the present value of the unhinged. The best performer in Hong $14bn from $19.8bn in April. Returns in Hong Kong have been opened — a record.
final 2115 payment — the
difference Kong, carmaker BYD, is up 86 per cent For all the talk of a Chinese equity plodding compared with those in “These are inexperienced investors
return of the $1,000 plus a this year, but its Shenzhen listing has market bubble, analysts say Hong Kong Shanghai and Shenzhen, but are still . . . they have no fear,” says Ms Chow.
coupon — would be just 26 cents. So whether the bond is risen 120 per cent. Coal producer Shen- remains relatively free of froth. Aside better than anywhere else. Though “They have never seen a bear market
eventually redeemed or not makes scant difference. hua Energy, the biggest loser on the from a few high-profile stocks, Chinese dwarfed by Shenzhen’s 112 per cent before, and believe the market can
Similar calculations explain why Mexico could issue a HSCEI, is down 17.4 per cent in Hong companies listed in the former British increase, the 20 per cent rise in the only go up.”
€1.5bn century bond — even though some would question
whether Europe’s single currency will be around in a dec-
ade, let alone a century.
What matters for the nearer-term performance of Petro- Capital markets
bras’s bonds as tradable securities will be trends in its
perceived creditworthiness and global interest rates. The
latter could push bond yields higher — and prices down —
but improvements in the energy group’s fortunes would
Yield on 10-year Bund
work in the opposite direction, justifying lower yields and
higher bond prices.
backs away from 1%
Petrobras’s century bond may still be sending warning
signals. It did not calm fears about the large inflows in
recent years into emerging market corporate bonds — and MICHAEL HUNTER AND in the bond market. He also
the risk of a disruptive correction if the US Federal Reserve KATIE MARTIN said debt markets had to “get
starts lifting interest rates this year. “It is a sign of eupho- Volatile trading character- used” to volatility in an era of
ria,” warns Alberto Gallo, head of credit research at Royal ised the eurozone govern- ultra-low interest rates.
Bank of Scotland. “It is a clear sign that the market has dis- ment debt market yester- “The image that sprang
connected from macro and micro fundamentals.” day, with yields on 10-year to mind this morning wasn’t
Longer bonds allow pension and insurance companies German bonds completing a of Super Mario but of Mario
to better match future liabilities. But they may amplify dramatic round trip after the Matador, delivering the
market swings. Bond maths shows that small changes in briefly threatening to rise coup de grâce to Bund bulls,”
interest rates produce proportionally bigger price move- above 1 per cent. said Kit Juckes at Société
ments on longer-dated bonds. Générale.
Century bonds strengthen the trend towards company An escalating shakeout of Investors had been led to
and government debt maturing ever further into the eurozone bond trades has believe that eurozone bench-
future. The proportion of issuance with maturities longer dominated sentiment, with mark yields would remain
than 10 years is at the highest since 2007, says JPMorgan. trading this week character- low, supported by QE, which
In the sell-offs that have punctuated recent market ised by sudden large swings. ends in September 2016, and
activity, bonds have appeared to act more like equities. The 10-year Bund yield by expectations that a sus-
“We have to get more used to thinking of bonds as ‘risky’ rose to a peak of 0.998 per tained recovery in the econ-
assets,” says Stephanie Flanders, chief market strategist cent yesterday, before easing omy would only emerge after
for Europe at JPMorgan Asset Management. “When you back to 0.81 per cent, down a prolonged period of slum-
see a bond with a high yield, you know it is going to have 6 basis points on the day. bering borrowing costs.
particular risk attached.” It has surged from 0.49 per Some analysts, however,
If investor interest is understandable, a harder question cent at the start of the week, have issued warnings about
is why Petrobras wanted to issue 100-year debt. The extending a rise from April’s the market’s complacency.
answer is: because it could. Massive demand gave it a record low of 0.05 per cent. Justin Knight, rates strategist
chance to storm back with a headline-grabbing bond issue, The 10-year Bund yield is at UBS, who issued a 90bp
boosting confidence and setting a benchmark that should the benchmark borrowing target for the 10-year Bund
make future issues easier. Shorter-term bonds might not rate for companies and the in March, when QE began,
have been much cheaper. These are difficult times for foundation of the broader said higher yields reflected a
Petrobras, but global financial conditions are in its favour. eurozone bond market. validation of ECB policy.
Improving eurozone data, “There must have been peo-
ralph.atkins@ft.com and the likelihood of a deal ple who thought Draghi
between Greece and its cred- didn’t want higher yields,
itors have prompted bond he said.
investors to head for the exit, Mr Draghi’s comments
with a lack of market liquid- seemed to add to the shift in
ity exacerbating changes in sentiment towards bond
More comment and data on ft.com yield and prices, according to markets, where yields
traders. started to move higher in
The European Central April. Benoît Cœuré, an ECB
Y Fast FT Our global economies, headed Bank is buying hefty board member, signalled in
team gives you market- by Brazil, Russia, India amounts of government debt May that the central bank
moving news and views, and China. via its €1.1tn quantitative would bring forward some of
24 hours a day, five days ft.com/beyondbrics easing policy, and has accel- its €60bn-a-month stimulus
a week. ft.com/fastft erated purchases this month. spending from July and
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a But investors no longer August, when liquidity levels
irreverent financial blog. look at what is driving appear willing to hold paper tend to fall, into the earlier
Join Paul Murphy and the global currency at meagre yields, given summer months, prompting
Bryce Elder for the daily market. ft.com/podcasts improving eurozone eco- some respite for yields.
Markets Live session at nomic data and the prospect Benchmark 10-year sover-
Y Lex Video Analysis of higher inflation. eign yields were higher
11am. ft.com/alphaville
and opinion from the Market anxiety intensified across the core eurozone.
Y beyondbrics News and team on the hot issues after Mario Draghi, president French 10-year yields were
comment from more affecting companies and of the ECB, said on Wednes- 7bp higher at 1.24 per cent,
than 40 emerging markets. ft.com/lexvideo day he planned to do “noth- with Spain’s up 7.4bp at
ing” about greater volatility 2.19 per cent.

Friday June 5 2015
Hungry for a piece of the action
The region’s start-ups
have exciting ideas but
a lack of finance and
support can hold them
back, writes Henry Foy
W
ith a deep scar across his
eye and a sword slung
on his back, Geralt of
Rivia, a monster-
slaying, witch-hunting
computer game hero who loomed over
New York’s Times Square from a colos-
sal advertising screen last month, is the
new global face of central and eastern
Europe’s emerging industrial future.
The Witcher 3: Wild Hunt is the latest
in a series that sees Geralt rampage
across a mythical Game of Thrones-style
world zapping evil spirits. It has put its
Polish developer CD Projekt at the gam-
ing world’s top table, and thrown a spot-
light on the region’s innovative new
technology scene.
“This is the big breakthrough for the
company and we all feel it,” says Michał
Nowakowski, senior vice-president of
business development at CD Projekt. “If
this game is the success we hope, that
puts us right up there in the global big
boys’ league, and that’s where we want
to play.”
The company had a market capitalisa-
tion of about 700m zloty in 2013. It was
worth 2.25bn zloty ($600m) last week
after shipping more than 1m pre-orders
Central & Eastern Europe
Emerging Industries
Exceptional: Polish developer CD Projekt is riding high on the success of The Witcher – but many entrepreneurs struggle
of the game, and selling hundreds of
thousands more to fans who queued
overnight at shopsaroundtheworld.
Yet for all the fanfare, Warsaw-based
CD Projekt’s global success remains an
exception rather than the rule, as central
FT SPECIAL REPORT
www.ft.com/reports | @ftreports
and eastern Europe strives to become
an innovationhotspot.
Since emerging from communist rule
a quarter of a century ago, with many
states joining the EU 15 years later, the
region’s economies have swelled,
thanks mainly to low-cost manufactur-
ing, exports and business reforms that
increased productivity.
Today, countries such as Poland,
Hungary and others are trying to shift
their economies towards innovative and
Inside
Wealthy individuals
bridge the funding gap
A weak venture capital
industry means chances
creative industries in order to bridge the
gap with western European states, and for private investors
avoid the “middle-income trap”, where Page 2
rising prosperity erodes cost competi-
tiveness, causing growth to plateau.
There have been successes. Skype, the
Comment
video-calling program, was developed Geography and strength
in Estonia. The Czech Republic’s AVG in tech could put region
and Avast protect hundreds of millions ahead in clean energy
of computers from viruses. Two Slovaks
Page 2
have developed the world’s first com-
mercialisable flying car.
“There is a strong entrepreneurial Exporting expertise
streak here,” said Andrzej Sykulski, Experience in extracting
managing partner and co-founder at oil and gas from shale
Trigon, one of the region’s largest bou-
tique investment banks. He managed creates opportunities
the 2014 public offering of LiveChat, a to share knowledge
Polish-built business-to-business and Page 2
business-to-consumer communication
platform that has managed to take its
product to global markets. Foreign connections
On paper, the region appears to have help restore past glory
the attributes necessary for other com- Low costs and fluency
panies to follow that path. Growing
economies, rising private spending and in languages and IT are
a steady flow of tens of billions of EU making Bulgaria a top
funding have resulted in strong market outsourcing destination
dynamics to support new ideas and con- Page 4
cepts. A historical focus on engineering,
science and technology education
means there is no shortage of smart, Estonia sets the pace
technically minded graduates with the
skills to turn ideas into reality. on e-governance
Warsawhadnearly700,000employed Baltic state is
science and technology graduates in showing
2012, according to Eurostat, with more
than 350,000 in Budapest and almost the way
200,000 in Prague. In 2012, Lithuania ahead
Continued on page 3 Page 4
2 ★ FINANCIAL TIMES Friday 5 June 2015

Central & Eastern Europe Emerging Industries

Lone rangers ride to the rescue of entrepreneurs

Venture capital Some business incubator and three via direct
investments. “It’s fun to see people
wealthy investors are growing. You don’t always do it for
backing young talent financial reasons. If the companies are
successful, then you benefit. But it’s nice
when other funding is to give back, as well.”
Across central and eastern Europe, an
scarce, writes Henry Foy absence of a mature and well-spread
venture capital industry, low research
markets have attracted investors in
medium and large businesses. But the
start-up scene lacks the financial prod-
ucts found in the US or western Europe
for early-stage investments in develop-
ing businesses.
Paweł Lakomy, director of Syntaxis
Capital, a mezzanine fund focused on
central and eastern Europe, says: “The
the cash that trickles down through
innovation supply chains.
While EU initiatives such as
Horizon 2020, which provides grants to
start-ups across the continent, have
helped many initiatives in central and
eastern Europe, a lack of an innovation
culture across the region means that
local government support is limited.
and others — who typically invest in
small groups that pool their capital and
spread it across multiple companies —
are offering an alternative. But many
start-ups looking for substantial capital
still turn to the world’s biggest entrepre-
neur hubs.
“There are interesting ideas here,
developed to a certain stage,” says
consider filling in the venture capital
gap. Andrzej Sykulski, founder and
managing partner of Trigon, the largest
boutique investment bank in central
and eastern Europe, is interested.
“We are thinking about VC. The space
is underdeveloped here,” he says.
“There are a lot of opportunities . . . If
we were looking at our own VC, we could

A
dam Sawicki is between
jobs, but is not too worried
about his pension; he has
his investments in start-
ups.
A successful executive who has
worked across business and finance, Mr
Sawicki has stakes in a number of Polish
start-ups, part of a trend of informal
investors backing the region’s creative
young talent. He says he has invested
about €500,000inthepast three years.
“It started because we saw a lack of a
structured way to fund these ideas,”
says Mr Sawicki, who has backed at least
a dozen start-ups and is currently
invested in five companies through a
and development spends and often
bureaucratic or inefficient government
financing initiatives mean start-ups
have struggled to find the initial capital
to get off the ground.
But into this void have stepped
wealthy individuals and private inves-
tors, who are backing their country’s
entrepreneurs and innovators, and
helping bridge the gap between a bright
idea and a viable business.
Mr Sawicki says: “There is a good sup-
ply of people who want to put money
into things and help. It’s not dumb
money — we are also giving advice and
access to our international networks.”
Central and eastern Europe’s growing
early funding is coming from high-net-
worth individuals and those that have
sold out of businesses. They want to
deploy capital, but they also want to
assist with development, and they natu-
rally have a different risk profile from
traditional investors.”
Mr Lakomy’s fund typically provides
financing to mature or well-developed
companies planning a big investment.
But long before that stage, start-ups can
often struggle to find that first €50,000
to get going.
The region lags well behind the EU
average in terms of R&D spending —
typically a useful source of funds for
entrepreneurs, either directly or from
Daniel Boniecki, technology practice
leader for central Europe at McKinsey,
the management consultancy, says the
region’s public sector needs to be a
much more effective investor and sup-
porter of start-ups in order for innova-
tion really to take off.
“We are lacking efficient or effective
channelling of finance to commercialis-
able ideas,” he says. “We need to be
more focused and specific about what
research and development money is
spent on.”
In Poland, spending on R&D in 2013
was €90 per capita, compared with the
EU average of more than €520.
Private investors such as Mr Sawicki
Mind the gap:
Maciej Zak says
good ideas are
often not matched
by development
funding in Poland
Maciej Zak, chief executive and
co-founder of Dirlango, a start-up
incubator.
“But,” he adds, “then there is a need to
go across the ocean for a funding round,
maybe with a financial stopover in Ber-
lin or London. International funding
can add a zero to your valuation.”
That may be changing, as financiers
be thinking of a couple of million zloty
[$500,000] per investment.”
According to research by Deloitte, a
professional services firm, interest in
the start-ups is gradually increasing
within the well-established private
equity industry in central and eastern
Europe.
Mark Jung, private equity leader at
Deloitte Poland, says: “A lot of funds are
becoming more creative . . . looking
to build a market leader instead of buy-
ing one.
“There is a trend that smaller compa-
nies at the development stage are
attracting investment . . . There is a lit-
tle more interest in the space.”

Estonia sees a bright future for its power industry Southeast Europe
Energy
New plants will reduce CO2
emissions from kerogen
shale, and there are plans to
export the technology,
writes David Crouch
It is like a vast geological sponge soaked
in oil. But squeezing the energy out of
kerogen shale, the poor relation in the
shale oil boom, is dirty and expensive.
Now companies in Estonia, which for
decades has relied on kerogen shale for
the bulk of its energy needs, are seeking
to persuade the world they have the
keys to unlocking this energy source in
new, clean and efficient ways.
Kerogen shale is more commonly, and
confusingly, known as oil shale. Suf-
fused with kerogen — a precursor of oil
— when mined, crushed and heated to
high temperatures the rock releases oil
and gas. Shale oil, in contrast, is oil
locked inside rock that can be released
by drilling down and injecting high-
pressure water, sand and chemicals. The
oil obtained from kerogen shale is also
known as shale oil.
Estonia is unique in its reliance on
kerogen shale for energy. It sits on large
deposits and is almost independent in
energy — an important consideration
for a young nation bordering oil-rich
Russia. Estonia uses 85 per cent of the
shale it mines to generate electricty,
with most of the rest producing oil.
Hando Sutter, chief executive of Eesti
Energia, Estonia’s largest power com-
pany, says: “We don’t have other energy
resources, no hydro, oil or gas; so ever
since our people found there is a rock
you can burn, they have been innova-
tive — we have been generating power
from oil shale for almost 100 years.”
Now Eesti Energia — Enefit outside
Estonia — is taking the first steps
towards exporting the technology it has
refined for decades. It expects to get the
go-ahead this year from the government
of Jordan to build a 540MW power sta-
tion based on rock containing marine
micro-organisms deposited 65m years
ago. Jordan imports most of its energy,
making its oil shale deposits a poten-
tially valuable resource.
“This is the first major export — the
investment is very big. I hope it is the
‘I believe we can turn Romania into a tech hub’
Technology
Emi Gal, the country’s
answer to Mark Zuckerberg
says it must overcome
cultural reluctance to take
risks, writes Andrew Byrne
Emi Gal’s admirers describe him as
Romania’s Mark Zuckerberg, but the
30-year-old serial technology entrepre-
neur demurs when asked if he welcomes
the description. “I find it a bit exagger-
ated,” he says. “I haven’t been nearly as
successful as Zuck — yet.”
Mr Gal started his first business — a
software development company — as a
teenager in his bedroom in Bucharest’s
suburbs and soon gained a taste for
innovation; he is now on his third tech
company.
“The only job I ever had was as a web
developer for a few months — I realised
pretty quickly it wasn’t what I wanted,
so I set up my own company at 18. I
never really questioned whether I
should do it or not,” he says.
first of many,” says Alar Konist, a senior
researcher at Tallinn University of
Technology.
There are oil shale deposits in more
than 30 countries, with resources in
place of about 5,000bn barrels of oil —
more than estimated known reserves of
oil recoverable by conventional meth-
ods. Mining has taken place in the US,
China, Russia, Jordan, Brazil, Morocco
and Estonia — in descending order of
resource availability, according to the
International Energy Agency — though
Estonia has seen the most activity.
In 2011 Eesti Energia bought a large
oil shale deposit in the US state of Utah,
which the company believes contains
2.6bn barrels of recoverable oil. The US
has 80 per cent of the world’s oil shale.
The IEA estimates that an oil price of at
least $60 per barrel is required to make
commercial exploitation of kerogen
shale for oil production profitable.
But there are strong environmental
objections to kerogen shale, which pro-
duces high carbon dioxide emissions
when used to generate power. Estonia’s
per capita emissions are higher than
Russia’s and twice those of Italy or
Ukraine, though still lower than the US.
Mr Gal is founder and chief executive
of Brainient, which supplies a tool that
allows broadcasters and producers to
add interactive content to video clips.
He says the company has helped clients
increase advertising revenue 30 per
cent by making smarter adverts.
Clients range from small content pro-
ducers to UK-wide broadcasters, such as
ITV, Channel 5 and Sky.
Mr Gal’s story is emblematic of Roma-
nia’s growing reputation as a low-cost
location with a large pool of skilled soft-
ware developers and engineers.
The country’s universities and techni-
cal schools produce more than 10,000
engineers a year, says Mr Gal. This
reserve of talent has attracted compa-
nies such as Microsoft, Adobe and Ora-
cle to the country.
But making the leap from bedroom
start-up to global tech company is not
easily achieved in Romania. Observers
note that a lack of capital, uncertain reg-
ulatory conditions and an aversion to
risk have forced innovators such as Mr
Gal into leaving their homeland to
develop their companies.
Now based in London, Mr Gal points
to a mixed inheritance from Romania’s
Cutting edge: Keith Burnard, head of the Energy
Eesti Energia’s Supply Technology Unit at the IEA says:
oil shale “Experience has shown that exploita-
processing plant tion of oil shale, whether for oil produc-
in Narva tion, power generation or industrial use,
Bloomberg is energy-intensive and CO2-intensive.
“In Estonia, one might argue its use is
positive for energy security and eco-
nomic development — but it is certainly
not positive for the environment.”
Estonia’s total CO2 emissions have
remained roughly stable over the past 20
years, although oil shale output has
climbed, as the process of extracting
energy has become more efficient. Now,
Estonia says that further increases in
‘We don’t efficiency will reduce energy-related CO2
emissionstohalfthe2007levelby2020.
have other Eesti Energia has been piloting a new
energy generation of shale oil power plants, the
first of which is planned to be commis-
resources. sioned at design capacity this year, with
We have more than double efficiency compared
with older plants. “Through cogenera-
generated tion of oil, gas and power all at once, we
power from can halve our CO2 emissions,” says Mr
Sutter.
oil shale for French multinational Alstom is build-
100 years’ ing a combined oil shale and biomass
power plant for Eesti Energia in Narva,
communist past. “I believe we can turn
Romania into an eastern European tech
hub, because we have tremendous tech-
nical talent,” he says. “The engineering
schools from communist times are still
of an excellent standard. But we need
more capital and we need to tackle this
cultural reluctance to take risks.”
Romania’s government has taken
steps to support entrepreneurs who
want to build and maintain start-ups in
the country, rather than merely work-
ing for one of several large multina-
tional tech companies based there.
Bucharest, Timisoara and Cluj-
Napoca have been identified as priority
zones for technology business by the
authorities. There have been some sig-
nificant successes, not least the sale in
2014 of LiveRail, a video advertising
technology company, to Facebook for
an undisclosed sum.
Two of LiveRail’s three founders are
Romanian and the company’s first
development team was based in Cluj-
Emblematic:
Napoca. LiveRail’s success and a gov- Emi Gal’s success
ernment-backed scheme to create a highlights his
tech cluster have sparked ambitious country’s growing
talk of transforming the city into a reputation as a
“Romanian Silicon Valley”. technology location
near the Russian border, designed to
meet future stringent EU emissions tar-
gets. The €640m plant is the largest
energy investment since Estonian inde-
pendence. Its use of biofuels in place of
some of the oil shale can lower the
plant’s CO2 emissions to levels similar to
those of modern natural gas power sta-
tions, the company says.
Large amounts of ash remain after the
oil separation process, but instead of
being dumped it can be used in the
cement industry, according to Dr Kon-
ist. “It is one of the key things when we
talk about developing this technology,”
he says, arguing that calculations of CO2
emissions from oil shale do not take this
into account.
Estonian company VKG is also devel-
oping a sideline in extracting phenols
and other commercial chemicals from
the shale oil or waste water used in older
technologies, Dr Konist adds.
In collaboration with Finland’s Outo-
tec, Eesti Energia is testing different
kinds of oil shale around the world, to
adjust its technology to local conditions.
“We are preparing for export,” Mr
Sutter says. “We are introducing oil
shale to the world.”
But the full story of LiveRail, which
moved its development team to Lon-
don shortly after it was acquired by
Facebook, offers a more sober picture
of the challenges Romanian tech com-
panies face in maintaining links with
their home country while pursuing
broader ambitions.
Mr Gal says: “Tech talent is one of
Romania’s best assets but the authori-
ties have a ton of other problems they
are dealing with. They need to do more
to encourage start-ups and persuade
them to stay there.”
He would like to see the authorities
recognise limitations, including a ven-
ture capital shortage and infrastructure
gaps. A focus on Bucharest, with its
international transport links, and the
creation of regulatory certainty, would
help Romania move up a gear in tech
innovation, he says.
“Investors are acknowledging the
country is getting better from a policy
and talent perspective,” he adds. “That
should build momentum and make
investors less reluctant.
“The more success we have, the eas-
ier it will be for the next batch of com-
panies to find funding.”
can lead the way
in clean energy
OPINION
Julian
Popov
At the end of 2014, Silicon Valley’s Progress Software
Corporation acquired the Bulgarian software start-up Telerik
for $262.5m, a huge amount for the EU’s poorest country.
Two months later, Bulgaria’s large Varna coal power plant
owned by the Czech energy company CEZ closed because it
could not comply with EU environmental standards and
remain competitive. These events highlight a battle of
generations in southeast Europe.
The region, which can be defined as including up to 18
countries, from Turkey to Italy, has 220m people and covers
2m sq km. Most of the states are entangled in a tug of war
between past and future. The struggle stretches from the
interpretation of history to industrial policies.
The old guard is pulling back. Governments dream of
re-industrialisation, generally understood as the revival of
inefficient Communist-era industries. Most countries cling to
the idea of becoming regional energy centres. Whether that
means building more power plants than the neighbours or
hosting more pipelines, the dream survives government and
regime changes, wars, EU entries and the turn of a century.
The dream is catalysed by Moscow’s strategies to sell
nuclear power plants and to penetrate the EU’s gas market
through southeast Europe in order to suppress alternative
gas projects that could squeeze Russia’s market position.
Centuries of struggle to create national identities are not
helping either. To have an independent energy supply is
often seen as strategic priority.
Meanwhile, the clean energy sector is growing fast. With
plenty of sunshine, good wind conditions and abundant
hydro resources, southeast Europe has great renewable
energy potential. Romania has the largest onshore wind
power plant in Europe and in 2012, Bulgaria installed
more solar power per capita than any other country in
the world. Both have already reached their EU 2020
renewables targets. Albania is one of the two European
countries with almost 100 per cent renewable electricity;
the other is Norway.
The IT sector is also booming. Management consultancy
AT Kearney’s 2014 Global Services Location Index ranks
Bulgaria as the best outsourcing destination in Europe and
ninth in the world. A recent analysis of Stack Overflow, a
popular coders’ online community, placed Bulgaria in a
leading position with the highest average reputation among
top users in the world. Croatia is in fifth position. Romania
and Bulgaria regularly feature in the top 10 countries with
the fastest internet speeds.
Clean energy and IT go
well together. The future of The region can
energy will be depend on
intelligent systems — from position itself as a
smart meters to complex
demand management and
regional power markets.
champion of clean
energy and new
Italy was the first country to
install smart meters in technology while
almost all households. contributing to
Austria is the first European
state to launch a smart climate goals
meter solution linking the
energy and telecoms sectors.
The two old EU members play a significant role in a region
where they are successful investors.
However, there is a big difference between energy and IT.
While IT is predominantly entrepreneurial and independent
of the state, energy is dependent on politics, regulation and
regional co-operation. None of these work in favour of the
entrepreneurial potential of the Balkans. The Energy Union
process might help. The European Commission recognised
southeast Europe as a region with high energy efficiency and
renewables potential that needs urgent action. It also
branded it as vulnerable and started a drive to make the
energy sector more transparent.
Until recently, southeast Europe was treated primarily as a
gas corridor — a simplistic view that ignores the vulnerability
of the region and its economic and renewable energy
potential. The region can position itself as a champion of
clean energy and new technology, boosting the economy and
security while making a significant contribution to European
competitiveness and climate goals.
If the Balkan countries step back from their old dreams of
energy supremacy and act with more transparency and
entrepreneurial spirit, they could leapfrog into the future of
interconnected, clean and efficient energy use.
Julian Popov is a former Bulgarian minister of the environment.
Friday 5 June 2015
Innovators
are hungry
for a piece of
the action
Continued from page 1
produced 23 science and technology
graduates per 1,000 inhabitants aged
20-29, the highestnumberinthe EU.
But two factors necessary to build
thriving innovation and entrepreneur-
ial clusters are holding the sector back.
Financing, especially for early-stage
investment rounds, can be tough to find,
stifling growth at a business’s nascent
stages. Also, a developed and reliable
network of resources and infrastructure
is yet to emerge, meaning that start-ups
can feel isolated and unsupported.
Paweł Tomczuk, an entrepreneur
now helping Polish companies to grow
abroad, is exploring ways to match suc-
cessful expatriates with entrepreneurs
back in central and eastern Europe who
could learn from their expertise.
“There are great ideas and concepts
here, but the support infrastructure
that people take for granted in places
like Silicon Valley is lacking,” he says.
“But often there are people out there
who have the experience and desire to
help develop new businesses.”
For others, those limitations mean
that start-ups can be impatient, and fail
to develop their businesses.
“We are 20 years behind somewhere
like Israel,” says Łukasz Wejchert,
founder of Dirlango, a start-up incuba-
tor. “There is a little too much hope. Peo-
ple want everythingtohappenso fast.”
Mr Sykulski at Trigon agrees: “You
have many whizz kids with great ideas.
Poland’s brightest strive
to fulfil their potential
Start-ups Young
entrepreneurs seek
scope for their talent in
the small home market,
writes Zosia Wąsik
I
n the old Jablkowski Brothers
building in central Warsaw, a gra-
cious early modernist department
store now transformed into a con-
ference venue, six start-ups com-
pete for a week of free mentoring and
networking in Bordeaux.
The professionally delivered pitches
and diverse interests of the audience
paint a picture of a vibrant and
dynamic start-up scene in Poland’s cap-
ital. But the fact that the April confer-
ence has been organised by a French
start-up accelerator, 33entrepreneurs,
which has come here all the way from
Bordeaux, speaks of the hurdles that
remain to be overcome.
Poland, the EU’s sixth-largest econ-
omy, is riding a GDP growth wave driven
mainly by low-cost manufacturing,
exports and better use of its capacity.
But policy makers keen to ensure the
country does not fall into a middle-
income trap, as salaries rise and erode
its competitiveness, are desperate to
nurture a budding innovation and tech-
nology culture.
The organisers of the start-up compe-
tition have visited San Francisco, Berlin
and Jerusalem in search of projects.
This year, they decided to add Warsaw,
their first destination in central and
eastern Europe.
“The Polish start-up scene is evolving
fast,” says Vincent Pétré, pre-accelera-
tion manager at 33entrepreneurs and a
member of the judging panel at the con-
ference. The judges hear pitches from
entrepreneurs who offer such things as a
phone application that matches food
with wine, or a “crowdflying” service
that connects people who want to travel
by plane to the same destination. The
winner (see box) stands a chance of
receiving an investment of €2,500 for
1 per cent of equity.
“I think the Polish ecosystem for inno-
vation is a slow, bottom-up process,”
says Eliza Kruczkowska, head of the
Startup Poland foundation, created
recently to represent entrepreneurs
Investment, research and high-technology industries
Research & development spending
Gross domestic expenditure on R&D
as a % of GDP, 2013
Slovenia
EU (28 countries)
Czech Republic
Estonia
Hungary
Lithuania
Poland
Slovakia
Croatia
Serbia
Bulgaria
Latvia
Romania
Montenegro
0 0.5 1.0 1.5 2.0
Private and public investment in
Central and Eastern Europe (CEE)*
% of GDP
Private sector Public sector
25
20
15
10
5
0 -20 -10
2008 2009 2010 2011 2012 2013 2014
FT graphic. Sources: Eurostat: Erste Group Research. *Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia, Slovenia
Winners: the Audiotrip team with 33entrepreneurs’ Vincent Pétré (right)
Audio travel guide app is a resounding success
A Polish start-up that streams tourist
audio guides to smartphones was the
runaway winner at 33entrepreneurs’
inaugural Warsaw talent competition.
AudioTrip won a mentoring week in
Bordeaux and a shot at €250,000 of
equity funding.
The application, which lets users
create and upload tours for others to
download, was built in Poland but its
developers want it to have a wider use.
“The main problem is the size of the
Polish market. Our potential clients
often do not have enough money to
co-operate with us,” says 26-year-old
Maciej Frankowicz, the start-up’s head
and build awareness among politicians,
academics and other businesses. “We
should not expect it will immediately
become a second Silicon Valley.”
Poles certainly display an entrepre-
neurial streak. Tired of working for
somebody else, young people say in sur-
veys that they prefer to use their skills to
start their own projects. According to a
study by Gfk, the research group, 77 per
cent of young Poles believe that they can
learn entrepreneurship and 56 per cent
that they are capable of running their
own business.
Poland is also noted for its deep pools
of technology and IT talent. Its pro-
grammers often win international IT
competitions. One of their recent suc-
cesses was at last year’s Hello World
Open coding championships in Hel-
sinki, where a Polish team beat more
than 2,000 teams of programmers from
92 countries.
However Poland still has to fulfil its
★ FINANCIAL TIMES
Central & Eastern Europe Emerging Industries
Sweden
Poland
Czech Rep
Slovakia
Austria
Hungary
Slovenia
Croatia
Bosnia
Italy
Montenegro
Albania
2.5
Foreign direct investment net inflow (CEE)*
Investment €bn
% year-on-year 40
20
30
10
20
0 10
-10 0 contacts around the world,” says Don
2008 2009
of business development. “We want to
launch in the most ‘touristic’ countries.
Great Britain and France would be our
natural first choices.”
AudioTrip sees its biggest market in
public institutions such as museums
and zoos, and business-to-business
sales are currently the main source of
revenue. So far, the company’s
portfolio includes 200 guides in 20
countries and more than 20,000 users
have downloaded.
The commentary for Warsaw zoo,
created a month ago, has been
listened to more than 1,000 times.
ZW
potential. Entrepreneurs complain
about a lack of funding and insufficient
co-operation between incubators, busi-
ness and universities.
“There are only some 70 venture capi-
tal firms in the country,” says Ms Krucz-
kowska. “This number is rising, but
there is a long way to go to match west-
ern start-up hubs.”
Young start-up founders say the
Polish market is too small, legislation
too complicated and commercial cus-
tomers too wary of newcomers for them
to develop their businesses. They want
to operate in foreign markets, especially
the US or UK.
Attempts are being made to smooth
out those problems. This month, an
accelerator, Business Link Narodowy,
will open at Warsaw’s National Stadium,
providing working space for start-ups.
The world’s third Google Campus, a hub
for entrepreneurs to meet and work, is
also due to open in the city this year.
3
But there are many great ideas around
the world. You need to have traction.
“If you go to these start-up fairs, they
Science and technology graduates say: ‘We have a great idea. We have no
Tertiary graduates in science and technology customers. We think we are worth 10m
per 1,000 inhabitants aged 20-29 zloty’ . . . I just say: ‘Thank you for your
time.Don’tcallme.’”
Lithuania Funding is a commonly cited obstacle
Estonia
for small businesses. The lack of a
Russia mature venture capital industry does
Slovenia
not help, while limited research and
Latvia development means less money is avail-
able for innovation.
Romania
Central and eastern European EU
Lithuania states spent an average of 1.2 per cent of
Russia Poland GDP on R&D in 2013, according to the
most recent figures from Eurostat. That
Belarus
Slovakia
compares with an EU average of 2 per
cent, and spending in countries such as
Germany and Austria of 2.8 per cent.
Croatia
Small businesses can also feel ham-
pered by bureaucratic requirements
Ukraine EU (28 countries)
and regulations that linger as a hang-
over from communism.
Efforts are under way to address some
of these issues. Pledges have been made
to increase R&D spending, and the new
Czech Republic €315bn fund for development projects
Moldova being championed by Jean-Claude
Juncker, president of the European Com-
Latvia mission,shouldalsohelpinnovators.
In February the Visegrad Group of
Romania
Poland, Hungary, Slovakia and the
Bulgaria Czech Republic agreed to establish the
Serbia
Visegrad Patent Institute, a one-stop-
shop for innovators. Initiatives such as
Kosovo Estonia the Deloitte Fast 50 and the New Europe
Bulgaria 100 have provided platforms to pro-
mote entrepreneurs and allow them to
Macedonia Hungary 2004 make connections.
2008
Greece 2012
Turkey FYR of Macedonia
‘[We lack] the infrastructure
people take for granted in
0 5 10 15 20 places like Silicon Valley’
Share of high-tech manufacturing and Intra-regional competition is also
knowledge-intensive services in small and forcing governments to make things
Other capital, €bn medium-sized enterprises sector, 2013 (%) easier for their innovators. Lithuania,
Reinvested earnings, €bn 35 envious of neighbouring Estonia’s new
Equity capital, €bn businesses, plans to borrow Tallinn’s
EU27 & Germany (32) approach and investing heavily to sup-
30 port digital developers.
“Accelerators and investment
help local talent take their ideas to
the next stage, by supplying them
25
with assets, industry knowledge and
Grantham, president for central and
20 eastern Europe at Microsoft, which is
Croatia Hungary Slovakia
supporting Lithuanian business start-
2010 2011 2012 2013 Czech Republic Poland Slovenia
ups such as IT ForYou, a music player
application.
4 ★
How Estonia set the pace on
the way to digital government
Technology David Crouch talks to the country’s ‘ambassador’ for e-governance about pushing boundaries
W
hen Ivar Tallo was due
to return to Estonia
after working abroad
for the UN, his wife
needed a job. After two
hours sitting at their kitchen table in
Geneva, they had created a graphic-de-
sign company for her from scratch, with
no agents, lawyers, meetings or pieces of
paper involved.
The ease of establishing a business is
just one of the attractions of Estonia’s
digitised governance system, in which
citizens bank, vote, park, sign contracts
and pay taxes with clicks of the mouse
or taps on their mobile phone screen.
In May, the country became the
first in the world to offer a secure
digital identity to non-Estonians
anywhere on the planet by
acquiring “e-residency” status,
enabling them to register a company
online, perform e-banking transac-
tions, make international payments,
declare taxes online and sign docu-
ments digitally.
For more than two decades,
the former nations of the Soviet
Union have grown accustomed
to taking lessons from the west
about how to run their economies,
governments and societies. But now
the boot is on the other foot — at least
in this small Baltic state which is putting
Photo: Scanpix
the internet at the heart of commerce,
governance and politics.
“When the Soviet Union collapsed
and we won our independence, we
wanted to be like the west but we didn’t
know exactly how you do things. So we
did it our own way and it was a bit differ-
ent,” says Mr Tallo, the founder of Esto-
nia’s e-Governance Academy and a rov-
ing ambassador for the country’s digital
experiment.
This historical accident, which left
Estonia without any banks, meant it
had to establish new systems with new
people and technologies, enabling the
country to leapfrog nations with estab-
lished back-office systems for finance
and government.
With a stated ambition to become as
renowned for its digital services as Swit-
zerland is for banking, e-governance is
a foreign policy goal for the country of
1.3m people.
“This is pure logic, not just some
empty aspiration,” says Mr Tallo. “Gov-
ernment is mostly about communica-
tion, so if communication has changed
then governments will change also. It is
going to happen anyway — it is just a
EU teams aim to help countries
rethink research and innovation
Policy
Hungary is among the first
to take advantage of expert
advice to overhaul its
system, writes Andrew Byrne
Hungarian leaders often speak with
pride of the innovations the country has
given the world: the ballpoint pen, the
espresso machine and the Rubik’s Cube.
“[Hungarians] do everything differ-
ently, and always seek to find new solu-
tions, leading to the birth of inventions,”
prime minister Viktor Orbán told an
audience in May.
But Budapest’s decision to seek out-
side advice on its research framework
from the European Commission’s new
Policy Support Facility (PSF) suggests
this pride is tempered with a realisation
the country is not reaching its potential.
Hungary is one of the first countries to
use the PSF, launched in March by Car-
los Moedas, EU commissioner for
research, science and innovation. The
decision highlights growing awareness
in central and eastern Europe of a
research policy and institutions gap,
with western countries receiving the
lion’s share of EU research funding while
others struggle with limited resources.
Bulgaria has applied for an intensive
peer review, while Hungary has
requested a preliminary audit of its sys-
tem for funding and guiding research by
leading industry experts.
“The initiative is designed to support
member states in reforming their
national science and innovation systems
by offering public authorities tailor-
made advice by international experts on
a voluntary basis,” Mr Moedas told
reporters at thelaunchinBrussels.
Hungary is a “moderate performer” in
question of whether we can shape it.”
Whether requesting a visa or regis-
tering for maternity leave, electronic
authentication is sufficient to
authorise any state service.
Business deals and transac-
tions are also concluded
with a digital signature.
Estonia’s e-residency
scheme is eye-catching
research and innovation according to
the commission. This puts it below the
EU average on indicators including inno-
vations, non-European doctorate stu-
dents and product innovation among
small and medium-sizedcompanies.
József Palinkas, Hungary’s research
and innovation chief, asked the PSF to
help bridge the gap between scientific
research and the market.
He says: “Hungary is performing
acceptably in research, but the transfer
from applied research is not as it should
be . . . My first hope is for advice on
what to change and how to ensure better
tech transfer from research into indus-
try and services.”
Mr Palinkas says the three independ-
ent experts, who have been meeting
scientists, researchers and industry rep-
resentatives since May, should also
advise him on how to design a competi-
tive and transparent research funding
system, based on lessons from the UK
and the Netherlands. The group will also
provide advice on how to reduce the gap
between basic research, applied
research and innovation.
Hungary’s institutes are well placed to
connect with industry; there is a sizeable
car sector with companies such as Mer-
cedes, Audi and Skoda. Local pharma-
ceutical company Gedeon Richter also
works closely with the country’s
research institutes todevelopdrugs.
Researchers face challenges however.
The government has cut research fund-
ing since 2009. Spending on research
and higher education fell from 0.46 per
cent of output in 2007 to 0.41 per cent in
2013, below the EUaverage.
Driving force:
commissioner
Carlos Moedas
says a new EU
scheme will help
improve research
FINANCIAL TIMES
Central & Eastern Europe Emerging Industries
but still largely “decorative”, Mr Tallo
says. Far more substantive is the interest
inotherEUnationsinthewaypublicand
private sectors in the country exchange
data and interact with each other to
provideservicesefficiently.
The system relies on a secure
digital identity. An authentica-
tion certificate is embedded in a
chip in each citizen’s electronic ID
‘When the Soviet Union
collapsed . . . we did not
know exactly how you do
things. We did it our way
and it was a bit different’
IvarTallo
Getting expert advice on how to spend
effectively is crucial for the policy sup-
port team; Mr Palinkas hopes it will help
him win support for reforms from
researchers and government.
Although the group’s recommenda-
tions are not mandatory, adopting best
practice is vital for countries seeking
investment from Horizon 2020, the EU’s
€80bnresearchandinvestmentfund.
“The process is also about convincing
the research community and govern-
ment how we can make a competitive
research funding system work inde-
pendently and transparently,” says Mr
Palinkas. “You can always ask for more
resources but it helps when you can
show the system is working effectively
andtransparentlyandproducesresults.”
Analysts caution that while expert
strategies and advice are useful, many
European countries would need to
invest in new administrative structures
to put strategy into practice.
Miroslav Beblavy, head of the jobs and
skills unit at the Centre for European
Policy Studies, a Brussels think-tank,
says: “You can pay the best consultants
to write the best analysis, but if the
national bodies don’t have the capacity
to absorb and dispense funding effec-
tively, then you have the problem of sys-
tems that are low in funding, badly run
and politicised.”
He adds: “Central and eastern Euro-
pean countries need to catch up with
western counterparts in managing
research and innovation funding.”
The commission’s experts are
expected to provide advice on how to
design and manage these processes.
But officials noted the expert report
will be a voluntary document without
enforcement tools. Mr Moedas has
acknowledged that winning high-level
political commitment will be crucial to
the success of the review. This means
the reform process has only just begun.
card with an accompanying pin
number, and also in their mobile
phone’s SIM card, creating a unique dig-
ital signature.
But technology is not enough — there
must also be a high level of trust in the
system among its users. With electronic
banking available since 1996, Estonians
have had almost 20 years of trusting
their money to the digital sphere, mak-
ing it easier to extend it into other areas,
such as taxes and ultimately elections.
When the country introduced inter-
net voting in 2005, only 2 per cent of the
electorate opted to cast their vote
online, but at this year’s general election
it was closer to 32 per cent.
“By raising the level of trust in society
in general, it changes the climate of
doing business,” says Mr Tallo. “And
that lowers transaction costs, which
raises GDP growth.”
Estonians have used their digital sig-
natures 218m times since the scheme’s
inception in 2002, with no serious
breach of security so far. Indeed, the US
National Security Agency, at the centre
of spying accusations since Edward
Snowden’s revelations last year, is
unhappy that it cannot eavesdrop on
communications, Mr Tallo says.
But with so much crucial information
in the cloud, there are inevitable con-
cerns about vulnerability to cyber
attack and fraud. Last year, researchers
claimed the electronic voting system
was flawed, and the opposition Centre
Party has campaigned against it.
“Yes, there have been moments when
people hesitated, and there have been
problems with data protection,” says Mr
Tallo. To strengthen confidence that
information is not misused, people can
check their own data online and ask
who has accessed it and why.
There are glitches. Journalist Raimo
Poom at the Eesti Päevaleht daily
expressed his frustration on Twitter last
month when two browsers refused to
authorise a payment. It felt like things
were going back to the 1990s, he said.
But the direction of travel in Europe is
clear, and Estonia is positioning itself as
a trendsetter. The UK signed a memo-
randum of understanding with Estonia
two years ago to share expertise on dig-
ital governance, while Brussels is look-
ing closely at what it can learn.
“Being digital is a way of overcoming
the handicap of smallness,” says Mr
Tallo. “It has a genuine appeal. We have
found a lot of people trying to emulate
us and we are very happy about that.”
Contributors
Andrew Byrne
Budapest correspondent
David Crouch
Freelance journalist based in Sweden
Henry Foy
Central Europe correspondent
Angel Petrov
Freelance journalist based in Bulgaria
Julian Popov
Former Bulgarian environment minister
City hopes high-tech
will restore past glory
Outsourcing
Bulgaria is becoming a leader
in the field, Theodor Troev
and Angel Petrov report
The city of Plovdiv, dating back 6,000
years and rich in archeological treas-
ures, is regaining some of its former cul-
tural and economic prominence.
In 2019, Bulgaria’s second-largest city,
studded with Roman theatres and still a
powerful economic force in the commu-
nist era, will become a European Capital
of Culture. Meanwhile, its GDP is grow-
ing by 12-13 per cent a year, one of the
fastest rates in the country. Much of this
can be attributed to an IT and outsourc-
ing boom, supported by local authori-
ties and national government.
Ivan Totev, the city’s mayor, says: “My
dream is to see Plovdiv’s renaissance as
both the industrial and cultural hub of
Bulgaria.” Mr Totev backs initiatives
from the private sector to develop the
city as a fast-growing outsourcing and IT
destination and says that tens of thou-
sands of graduates in the next few years
willhelpattractmanynewjobs.
Plovdiv is an example of the country’s
thriving outsourcing industry, account-
ing for almost 4 per cent of GDP, accord-
ing to the Bulgarian Outsourcing Associ-
ation (BOA). Bulgaria is the world’s
ninth “most preferred” outsourcing des-
tination in consultancy A T Kearney’s
2014GlobalServicesLocationIndex.
Fluency in languages and traditions in
software development and program-
ming are a draw, while macroeconomic
stability and a currency pegged to the
euro add to the country’s appeal. Out-
sourcing employees’ wages are low com-
pared with western Europe, but allow a
better quality of life than most sectors.
Investors have been attracted to the
Plovdiv area in part by the Trakia Eco-
nomic Zone (TEZ), a public-private
partnership comprising six industrial
zones clustered in and around the city.
Companies are enticed by comprehen-
sive infrastructure and fast-track proce-
dures. TEZ is Bulgaria’s first such area to
receive focused state support, which
allows even small municipalities to
apply for project funding from the
national budget or EU programmes.
Investment into TEZ projects has
topped €1bn since its zones started to
grow in the 1990s, with another €800m
expected in the next 10 years.
“We’re conservative in these esti-
mates, the interest is steadily growing,”
says Plamen Panchev, TEZ managing
director and chairman of construction
group Sienit Holding, which played an
important role in creating the TEZ
More than 100 investors, most from
Europe, have been drawn by business-
Zosia Wąsik
Freelance journalist based in Poland
Theodor Troev
Freelance journalist based in Bulgaria
Jerry Andrews
Commissioning editor
Steven Bird
Designer
Andy Mears
Picture editor
Friday 5 June 2015
Historic: Plovdiv’s ancient theatre
friendly legislation, low labour costs and
the 10 per cent flat tax that Bulgaria
offers foreign companies. Among them
are ABB, the Switzerland-headquar-
tered power and automation group, and
German supermarket group Kaufland.
A “smart city” project to boost energy
efficiency and cut industrial waste in a
TEZ zone is being developed with Ger-
many’s Fraunhofer Institute and China’s
Huawei. Another Chinese company,
Hainan Longquanren Century Invest
and Development, is TEZ’s partner in a
Euro-Chinese Economic Development
Zone aimed at attracting more Chinese
investment by establishing a logistics
hub linking Asia and Europe.
TEZ has employed 12,000, including
jobs for residents in poor rural areas,
which initially provided more workers.
However, lack of qualified employees is
a problem, although there are attempts
to remedy this. Ivaylo Staribratov, who
chairs the Information and Communi-
cation Technologies Cluster, has pushed
for curricula at some universities and
vocational secondary schools to match
better the requirements of the IT sector.
Other cities, such as Veliko Tarnovo in
north-central Bulgaria and Varna and
Burgas on the Black Sea, are also bene-
fiting from the growth in outsourcing
The foreign presence is expanding.
HP, the US technology conglomerate,
opened a lab in Sofia, for example. In
Sofia alone, some 20,000 people are
available to take up junior outsourcing
positions — about the same number
working in the sector nationwide.
“The potential we have could double
the share of outsourcing in GDP in the
next three to five years,” says Stefan
Bumov, BOA chairman and chief execu-
tive of Sofica Group — the largest Bul-
garian-owned outsourcing company,
bought by US-based TeleTech last year.
Ilia Krastev, chief executive of A Data
Pro, a content, data and business intelli-
gence services company, adds falling
birth rates and education as challenges
“that could put a brake on sustainable
growth”. He says Bulgaria must make it
easier to hire foreigners, stop a brain
drain, attract natives who graduated
abroad and improve quality of life.
For advertising details, contact:
Jim Swarbrick, +44 (0)20 7775 6220 or
07771 898514 and jim.swarbrick@ft.com,
or your usual FT representative.
All FT reports are available at:
ft.com/reports
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All editorial content in this report is
produced by the FT. Our advertisers
have no influence over or prior sight of
the articles.

Friday June 5 2015
Watchmakers face a
bumpy ride after boom
Luxury leaders remain
bullish in the face of
currency fluctuations
and a slowdown in
Asian markets,
writes Elizabeth Paton
I
n the past six months, a cocktail of
wavering Asian consumer enthusi-
asm, currency headwinds and geo-
political instability has triggered a
sales slowdown that is taking a toll
on some of the biggest names in the hard
luxury sector.
In April, Richemont, owner of some of
the industry’s leading maisons — includ-
ing Cartier, Piaget, Vacheron Constan-
tin, Officine Panerai, Baume & Mercier
and Van Cleef & Arpels — issued a stark
profit warning, predicting that earnings
would drop by more than a third this
year as the stronger Swiss franc
increased production costs for time-
pieces.
Sure enough, the world’s second-
largest maker of luxury goods, after
LVMH, reported in May that net income
for the year to March 31 was down 35 per
cent to €1.33bn, and announced a fur-
ther unexpected 8 per cent decline in
April sales.
The group’s core markets, Europe and
North America, were up 7 per cent and 8
per cent respectively to €3bn and
€1.4bn. And despite regional volatility
Watches & Jewellery
in the wake of the Syrian and Islamic
State of Iraq and the Levant (Isis) con-
flicts, which had been expected to weigh
on sales, Middle East operations saw a
13 per cent boost to €841m. But in Asia
Pacific, the company’s biggest market,
sales were down 6 per cent to €4.1bn.
The group’s main worries continue to
be centred around Hong Kong and
Macau, two of the most important mar-
kets for luxury goods, which, combined,
account for a fifth of global annual
watch sales. This in turn has fuelled
fears of a build-up of unsold watches in
Hong Kong that have been deterring
retailers from buying fresh stock.
“Who knows how long this region is
going to have less robust demand,” says
chairman Johann Rupert. “We are not
saying no demand, but less boom time
demand for sure.”
Latest data released last week show
that Swiss watch exports are up by just 2
per cent this year to date. This is a con-
tinuation of the subdued trend of 2014
of all leading watch players, analysts
say, and a reflection of the sector’s over-
exposure to Greater China, where
exports have fallen by 9 per cent since
the start of 2015.
A Chinese consumer would
save 39 per cent on luxury
goods by flying to Paris
instead of buying at home
FT SPECIAL REPORT
www.ft.com/reports | @ftreports
Inside
Seeing red Record price for Sunrise Ruby
The terminator
timepiece
Arnold
Schwarzenegger
unveils his
watches with
muscle
While the political protests in Hong
Kong and the residual effects of the gov- Page 4
ernment crackdown on gift giving have
played some part in the region’s sub-
dued performance, the crucial factor
A winning formula?
has been the decision by many watch- Shelby Cobra
makers, including Patek Philippe, Her- and Baume &
mès and Chanel, to raise their prices in Mercier join
some parts of the world and lower them
forces
in others.
Jon Cox, an analyst at Kepler Cheuv- Page 4
reux, says the move “has led to a great
deal of unpredictability in terms of trad-
ing, both wholesale and retail, as many
big players continually adjust prices,
particularly in Greater China and the Bite of the Apple
US, and suppliers delay purchases
ahead of price cuts in markets linked to Luxury brands get smart
the US dollar.” He says the fluctuations as they prepare to take
have led to a migration of spending by on the Apple Watch
wealthy Chinese to other parts of Asia, Page 6
notably South Korea and Singapore.
In response to the weakness of the
euro and the strength of the US dollar,
A guaranteed diamond
Richemont raised prices in the euro- is forever
zone and cut them in the US, Middle De Beers has invested
East and Greater China, but said that no $10m in a grading
further changes were planned for now.
“We are now where we want to be,” facility in Surat, India
says Mr Rupert. Page 10
The gap between the prices for luxury
watches and jewellery in Europe and in A passion for jet
China is the biggest it has been for three
years, according to analysts at Bern- A rare Burmese ruby, with a “pigeon’s private collection of Cartier pieces, and Elizabeth Taylor
stein. Currency swings mean that, blood hue” and weighing 25.59 carats, was part of the auction house’s Fashion designer
despite the price rises in Europe, a Chi- was sold for a world auction record of Magnificent Jewels & Noble Jewels Anna Sui on her love of
nese consumer would save 39 per cent $30m at Sotheby’s in Geneva last sale. The auction achieved $170m.
on the average purchase of luxury goods month. The Sunrise Ruby, from a An auction is like theatre — Page 12 vintage jewellery
Continued on page 3 Page 11
2 ★
Diamond heist
leads to a
spike in sales
of insurance
Security Companies are having to demonstrate
they have well-managed risks, writes Gill Plimmer
J
ust days before the Cannes
Film Festival in France last
month, masked thieves
entered a Cartier store on the
city’s main seafront road — the
Promenade de la Croisette — pointed a
gun at customers and staff and escaped
with €17.5m of watches and jewellery.
The timing was significant. Ahead of
the film festival, leading jewellers ship
in their most expensive gems for celeb-
rities to wear on the red carpet.
The Cannes robbery came soon after
the Hatton Garden heist in London,
when a gang of thieves ransacked 72
safety deposit boxes used by local jewel-
lery stores over the Easter weekend.
Although both incidents were rela-
tively high-profile and received consid-
erable media coverage, Charles Reese, a
broking director for Towergate Insur-
ance, which specialises in jewellery, says
such heists are “not infrequent”.
Thefts from safe deposits vaults are
much less common than hold-ups, in
part because they are more complex
crimes that require extensive planning.
To gain access to the Hatton Garden
Safe Deposit building near Holborn,
central London, the thieves needed to
disable the lift, abseil down its shaft,
prise open some shutter doors and drill
a large hole through the vault’s walls.
So difficult was the task that, after en-
tering the shaft on Maundy Thursday,
they took a break on Easter Friday, re-
turning on Saturday to complete the job.
Last month, eight men were charged
with conspiracy to burgle following the
Hatton Garden raid. They are aged
between 48 and 76 and include three
pensioners.
The challenge the thieves faced in
breaking into the vault no doubt
explains why so many of the Hatton
Garden jewellers using it were unin-
sured.
Assetsure, the specialist insurance
provider, says it has seen a doubling in
the number of customers seeking insur-
ance for items stored in safety deposit
boxes in the wake of the incident.
Bob Andrews, marketing manager at
Assetsure, says: “A number of people
who stored their jewellery and valua-
bles in banks or secure facilities didn’t
think it was possible for them to be sto-
len. That has all changed.”
He adds: “Not all such facilities
insure the goods they store — as in the
case of the Hatton Garden Safe Deposit
raid. This has highlighted the fact that
no security precaution is ever water-
tight and that, unless your items are
fully insured, their value is not pro-
tected.”
Even though London is the world’s
biggest insurance market with cover for
jewellers worldwide largely underwrit-
ten there, Mr Reese says that the Hatton
Garden theft has yet to affect insurance
rates.
“The London insurance market
has an active international side, so one
FINANCIAL TIMES
Watches & Jewellery News
Thieves drilled incident — albeit a serious one — is prob-
through a thick ably not enough to make a big differ-
concrete wall to ence,” he says.
access a vault in As a rule of thumb, it costs about 1.5 to
Hatton Garden, 2 per cent of the value of the stock for
London jewellers to insure their goods. Over the
Getty past few years, the commercial jewel-
lery and arts insurance market has been
relatively stable.
Tracy Murrell, global client advocate
at Willis Fine Art Jewellery, believes that
these incidents make insurers, as well as
customers, more cautious.
“Generally, the inventory market is
very competitive, but as losses occur
and underwriters are paying out on size-
able claims, they are going to be more
selective about what they underwrite
and what they charge,” she says.
“The onus is on insured parties and
their brokers to demonstrate that a
company has well-managed risks. The
cost is influenced by the individual com-
pany’s claim history and whether it is
perceived by an insurer as a good risk or
‘No security
not.” precaution
Ms Murrell says that underwriters are
becoming more precise about under-
is ever
standing their clients’ security arrange- watertight’
ments and also how they manage risk.
Fine jewellery sales add a touch
of sparkle to the luxury sector
Retail
A more informal approach
and rising internet sales
have boosted sales,
reports Andrea Felsted
London’s fine jewellery retail market is
undergoing a makeover.
An evolving customer mix, overhauls
of fine jewellery rooms at some luxury
department stores and changing con-
sumer tastes are shaking up the UK cap-
ital’s high-end jewellery market, which
accounts for the vast majority of the
country’s luxury jewellery sales.
Monica Vinader, who runs her own
jewellery label, says the London jewel-
lery market has had a “few tricky
months”, with the UK general election.
“That is always a bit of a shake up for
everybody. But I think London is still
very strong.”
London, in common with other lux-
ury centres, has been hit by the down-
turn in demand from Russia. According
to Global Blue, which tracks spending
by overseas visitors, Russian travellers
to the UK were the seventh highest
spending nationality in 2014. In 2013,
Russia was ranked third.
Despite the changes in spending hab-
its, Annoushka Ducas, founder of jewel-
lery retailer Annoushka, and before
that Links of London, says she has not
seen a significant fall in demand from
Russian clients. Overall, Annoushka’s
sales from stores open at least a year are
up 25 per cent so far in its financial year,
which ends in July.
Alongside the change in shopper mix,
the high-end jewellery retail landscape
is also evolving, with Harrods among
those changing their offering.
Helen David, Harrods’ fashion direc-
tor for womenswear, accessories and
fine jewellery, says: “We are not ‘reor-
ganising’ the departments. Rather, we
are making some exciting changes to the
existing layout and footprint.”
As part of the plans, Graff and Harry
Winston will open boutiques over the
next few months. Tiffany will also
launch a boutique to carry its high-end
jewellery, while Harrods will open a
large secondary boutique for Tiffany in
the luxury jewellery section.
The department store has appointed
the David Collins Studio to refurbish
the central portion of its fine jewellery
In turn, she adds, companies need to
ensure that the insurance they buy is
aligned with their risk exposure and
“will respond where the risks happen”.
“This includes understanding the
values at risk at each stage of the manu-
facture, supply and retail chain, and
making sure the agreed levels of indem-
nity are correct.”
Ms Murrell says that companies also
need to understand the extent to which
they can expect to be indemnified by
their storage and transit providers.
“You can buy off-the-shelf coverage,
but the last thing you want is to buy
insurance without stress-testing that
cover against likely claims scenarios,”
adds Ms Murrell.
Following the Hatton Garden theft
some of the stolen goods were subse-
quently recovered. Forensic tests are
currently being run and the police hope
to return the items to their owners as
soon as possible.
It is not known if all the missing
objects have been found and Harry
Levy, president of the London Diamond
Bourse, a trade association, says that for
those small businesses affected by the
Hatton Garden theft, the chances of
Actress Jennifer Tse (left) meets Monica Vinader in her Harrods boutique - Getty
section on the first floor, to bring cohe-
sion to the entire department. It will pay
particular attention to lighting, to set off
the jewellery.
Ms David says Harrods has “edited”
the brand mix on the ground floor, and
will open a dedicated fashion jewellery
area on the lower ground floor.
“These redevelopments form part of a
continued programme of investment
across the Knightsbridge store, as we
aim to cultivate the world’s finest
brand-mix in the most luxurious and
inviting environment,” says Ms David.
Selfridges, meanwhile, is expanding
by a third its Wonder Room, which has
housed its fine jewellery and watch
collections since 2007. The expansion
will be led by a Tiffany concept store this
month, followed by the launch of two
brand boutiques for Chaumet and
Boucheron. It will also add a dedicated
personal shopping service.
Selfridges also offers a specially
adapted click and collect service for the
Wonder Room, where a customer can
order a piece of jewellery online and col-
lect it in-store, trying it on in the bou-
tique, and then changing or adding to
the initial order if required.
Launched last August with Cartier,
Selfridges now offers this service with
most of the brands in the Wonder Room.
Indeed, another trend that is emerg-
ing is for customers to buy jewellery
online. Annoushka’s online sales are up
95 per cent so far this year, and it is
about to launch a new website.
“There is no doubt that consumers
are becoming more confident about
buying jewellery online,” says Ms Ducas.
Friday 5 June 2015
receiving compensation for uninsured
items are “very limited”.
However, even if jewellers and their
customers do adopt stringent precau-
tions, Simon Aitchison, head of jewel-
lery at Beazley, an insurer, points out
that jewellery and watch thefts remain
common.
“If you are a Rolex dealer, you will
have been targeted,” he says. “People
haven’t stopped stealing.”
More on FT.com
Art deco revival Contemporary
designs are drawing on the bold,
geometric styles of the 1920s
Buccellati on show The Italian
jeweller’s collection is on display in
Milan
Enlightened approach There is
a growing trend for pieces inspired
by spirituality
Despite the uncertainty in the high-
end market, retailers are opening
stores. Last year, Watches of Switzer-
land opened a £15m emporium on Lon-
don’s Regent Street.
Monica Vinader opened a store at
Duke of York Square in Chelsea in
November. She says that up to April,
sales were 10 per cent ahead of budget.
Overall, the group’s sales are up 35 per
cent year on year.
Demand has been particularly strong
for diamond jewellery, she says, with
pieces ranging from £150 to £3,000.
Overall, diamond sales are up 78 per
cent year-on-year, with the volume of
diamond pieces sold up 107 per cent.
“It’s not the very high-price point dia-
mond pieces,” she says, but “very
affordable diamonds, very wearable,
very every day”.
Style trends within the high-end
jewellery market are also changing.
“People are more interested in
wearing jewellery in an informal way
rather than special events and occa-
sions,” says Ms Ducas.
“I think people are getting braver.
[Jewellery] is becoming much more
part of the wardrobe. It’s more about
finishing an outfit or look.”
More women are buying jewellery for
themselves, she says, with 80 per cent of
Annoushka’s customers being female.
And in a world obsessed with images
on social media, jewellery can change
the look of an outfit.
“You can wear the same piece of jew-
ellery to dress up your jeans as you can
to go to a black tie event,” says Ms Ducas.
“It’s about the attitude.”
Friday 5 June 2015 ★ FINANCIAL TIMES 3

Watches & Jewellery

A fantasy watch show and everyone is invited

Patek Philippe ‘Grand in between. The idea, says Mark Hearn,
the company’s UK managing director, is
with the celebrated English emblem
depicted in 19 hand-enamelled colours.
that anyway, without the need for an
exhibition.
Exhibition’ brings not so much to make money as to open The red enamel dial is set with emeralds “What we are trying to do is showcase
together a collection of the rarefied world of Patek Philippe to
the wider public — even to those, he
and the crown with a cabochon, while
the gold chain on which the watch hangs
the craftsmanship, art and history of
Patek Philippe from the very beginning
400 masterpieces, admits, who might never be in a position is set with 60 further emeralds and 60 up to the present day. The thinking
to buy what it sells. red spinels. behind it being open to anyone and eve-
writes Simon de Burton The event is called the Watch Art Also on show are: the personal ryone without any admission charge is
Grand Exhibition. In keeping with the pocket watch of the company’s founder, to give people the opportunity to be

A
nyone with even a passing
interest in high-end
watches has probably
heard of Patek Philippe.
However, mention the
name to passers-by on a London street
and the chances are that many would
fail to associate it with horology. Quite
simply, most people would never con-
template spending the sort of sums
required to access the watchmaker’s
highly prized, highly priced products.
But in recent weeks, Londoners have
found themselves exposed to Patek
Philippe through a wide-ranging pro-
motional campaign that has extended
far beyond the luxury lifestyle maga-
zines in which it usually advertises.
Advertisements carrying the name
have appeared on the sides of 80 taxis,
on the walls of 100 tube stations and in
bus shelters from Ealing in the west to
Epping in the east, as well as everywhere
“art” in the title, it is being staged at the
Saatchi Gallery in Chelsea, which
already has horological form as the
venue of the annual winter watch show,
SalonQP.
But the Grand Exhibition is different.
It is the largest, most significant and
most varied collection of Patek Philippe
pieces ever shown in public — and it is
open to anyone and everyone, free of
charge.
Once inside, visitors have access to a
dozen rooms across two floors of the gal-
lery, divided into 15 themed areas in
which 400 exceptional timepieces with
a combined value of tens of millions of
pounds are showcased.
Every type of movement currently
made by the Geneva company is exhib-
ited, along with the entire collection of
watches created in honour of its 175th
anniversary last year. This includes the
Grandmaster Chime, a double-faced,
The Tudor Rose watch has been created in recognition of the London venue
musical watch with 20 complications,
which is being made in just seven exam-
ples, each priced in excess of £1m.
The Napoleon room, meanwhile, rep-
licates the brand’s flagship Geneva salon
(complete with views of a virtual Lac
Léman). Other zones include a library, a
museum, a rare handicrafts gallery and
an “immersion room” containing an
extensive horological library, interac-
tive technical and historical animations
and a special area in which visitors can
listen to the striking of minute repeater
watches.
In recognition of the London venue,
the company has produced a unique,
yellow-gold pocket watch named the
Tudor Rose. The watch is decorated
Antoine Norbert de Patek; a unique
minute repeating watch made for the
Duke of Regla in 1909; and Patek
Philippe’s first Swiss-made wristwatch,
‘We are trying to showcase
the craftsmanship, art and
history of Patek Philippe
from the very beginning’
sold to a Hungarian countess in 1868.
Mr Hearn comments: “Patek Philippe
staged a similar event in Dubai five
years ago, and another in Munich two
years ago — but this is the first time it
has held an exhibition of this size and at
this level.
“The objective [of the exhibition] has
never been to sell watches — we can do
educated and informed about a watch
company that many might otherwise
not have the chance to discover.
“Realistically, we know that 80 or 90
per cent of the people who come to the
exhibition will probably never be able to
acquire a Patek Philippe watch, but the
main aim is to get our name out to a
wider audience and, hopefully, to pro-
vide a high quality, informative and fas-
cinating experience which gives an
insight into the workings of the last of
the great, privately owned Geneva
watch houses.”
The Patek Philippe Watch Art Grand Exhi-
bition runs until Sunday (June 7) at the
Saatchi Gallery, Duke of York’s HQ, King’s
Road, London SW3.
The exhibition is free to enter, and is open
from 9am — 7pm today and tomorrow
(Saturday) and from 10am — 4pm Sunday.
No booking required.

Watchmakers face a
bumpy ride after boom
Continued from page 1
by flying to Paris instead of buying at
home, compared with a saving of 26 per
cent last year. As of March this year, lux-
ury watches specifically were on aver-
age 33 per cent cheaper in France than
in China, against 21 per cent last year.
Executives have alluded to the
uncomfortable impact these pricing
shifts could have on the minds — and
wallets — of high-net-worth consumers.
“Of course, VIPs are always concerned
if we consider a price decrease, because
you damage their assets,” Wilhelm
Schmid A Lange & Söhne’s chief execu-
tive, said earlier this year.
But many brands do not have much
choice, following the January decision of
the Swiss National Bank to lift the cap on
the Swiss franc in relation to the euro,
leading to its sharp appreciation.
“Most Swiss watch companies have a
currency mismatch between their cost
and revenue base,” explains Thomas
Chauvet, a Citi analyst. “The move by
the Swiss National Bank prompted the
price rises in an attempt by watchmak-
ers to protect margins and prevent the
development of parallel markets.”
Richemont, which has 8,700 employ-
ees, says moving production out of Swit-
zerland is not an option. It says it is
implementing belt-tightening measures
and top executives have taken a pay cut
to help them negotiate salary readjust-
ments with other staff.
“We’ve got to get on with life,” said Mr
Jean-Claude Biver
of Tag Heuer says
that countries with
strong currencies
are able to turn
things around
Rupert. “We survived it before and I
think we’ll survive it again. Switzerland
is still a wonderful place to do business.”
Jean-Claude Biver, chief executive of
Tag Heuer and Hublot as well as presi-
dent of the LVMH watch division,
stresses that the past has shown that
countries with strong currencies are
able to turn things around.
“Did the strength of the Deutschmark
after world war two stop the Germans
from selling cars and machinery?”
he asked journalists earlier this year.
“When you have been used to a
strong currency for years, you are used
to competition, so you build sufficient
flexibility into your structures to com-
pensate. LVMH, for example, knows
how to take advantage of the situation
by having contracts in euros for things
such as leather watch straps, bracelets
and so on.”
There are bright spots to be found. Mr
Cox of Kepler Cheuvreux points to a
tough trading year, but notes that
demand dynamics should improve as
new prices come into effect and com-
parison becomes easier, now that a year
has passed since the Occupy Hong Kong
movement — and impact on the wider
market — began.
To that end, Richemont has said that
retailer orders had improved in May to
generate flat sales at constant exchange
rates and the company is looking to the
future “positively”. A slashing of hefty
government tariffs set into play last
week in China should also encourage
further domestic spending.
And after enduring months of hype
surrounding the launch of the Apple
Watch and questions on its impact on
the traditional watch market, the old
guard are striking back.
Swatch is launching a model that can
make mobile payments this summer,
giving Apple more low-price competi-
tion. Richemont has unveiled so-called
‘intelligent’ watch straps that can track
steps and read emails, attached to Mont-
blanc timepieces.
And Tag Heuer has announced a part-
nership with Google and Android to pro-
duce a smartwatch, launching this
autumn, which it claims will have 40
hours of battery life, compared with 18
hours for the Apple Watch.
As lower-priced Swiss watch exports
continue to outshine those at the higher
end of the pricing spectrum, these for-
ays could offer a longer-term fillip to the
industry. Mr Biver told the Financial
Times this year that he thought smart-
watches could ultimately help by
encouraging young people to wear
watches, which they do not do today.
“If they make young people start to
wear watches again, there is more
chance that they will want to buy a more
expensive timepiece later on,” he said.
“People will appreciate even more
that haute horlogerie is designed to sur-
vive for generations.”

Contributors
Camilla Apcar Freelance journalists
Researcher, How To Spend It
Linda Anderson
Simon de Burton Commissioning editor
Contributing editor, How to Spend It
Steven Bird
Andrea Felsted Designer
Senior retail correspondent
Graham Parrish
Simoney Kyriakou Graphic artist
News editor, Financial Adviser
Andy Mears
Elizabeth Paton Picture Editor
Business reporter
For advertising details, contact:
Gill Plimmer Charlotte Williamson, +44 (0)20 7873
Reporter 4038, charlotte.williamson@ft.com, or
your usual FT representative.
Giulia Segreti
Rome reporter All FT Reports are available on FT.com at
ft.com/reports
Claire Adler, Elisa Anniss, Anthony
DeMarco, Jessica Diamond, Rachel Editorial content in this report is
Felder, Liza Foreman, Rachel Garrahan, produced by the FT. Our advertisers have
Hettie Judah, Ming Liu, Sarah Murray, no influence over or prior sight of the
Robin Swithinbank, Syl Tang articles.
4 ★
Fewer than 1,000 Shelby Cobras were built during the original 1960s production run, but they were among the most successful sports cars of their day
Swiss timing and American
racing make strong contenders
Partnership A tie-up with the Shelby Cobra car moves up a gear, writes Simon de Burton
T
he business benefits to be
had from watch brands and
car marques teaming up to
target buyers with a mutual
appreciation for high-end
automobiles and haute horlogerie are
well known.
Over the decades, such relationships
have resulted in longstanding partner-
ships between Breitling and Bentley,
Jaeger-LeCoultre and Aston Martin,
IWC and Mercedes-AMG, Parmigiani
and Bugatti and — celebrating their 30th
anniversary together this year — TAG
Heuer and McLaren.
But for watch houses that have not yet
found a motoring partner, there is a
problem: the pool of high-end carmak-
ers offering the right “fit” is decidedly
small, and most of the appropriate ones
have been taken.
Which is why Alain Zimmermann,
chief executive of the Richemont-
owned Baume & Mercier brand, acted
fast when he discovered that one dis-
tinguished automotive name
still lacked a watch partner
— albeit a name that
really only resonates
with sports car
buffs.
Indeed, the
company Mr Zim-
mermann chose,
Shelby American,
is an almost exclu-
sively US operation
and does not cur-
rently have a com-
mercial presence in
Baume & Mercier’s
key markets of Europe
and Asia.
The terminator turns his hand, and muscle, to timepieces
Product launch
Inspired by his movie career,
Arnold Schwarzenegger has
designed a range of ‘elegant
and sporty’ watches,
says Robin Swithinbank
After a career spanning almost five dec-
ades across professional bodybuilding,
Hollywood and US politics, Arnold
Schwarzenegger intends to muscle in on
the watch industry.
The former governor of California
announced plans at the Baselworld
watch fair in March for a watch brand in
his name. The first products bearing the
AS logo are due to arrive on the global
market in the run-up to Christmas.
Mr Schwarzenegger is known in
watchmaking circles as a collector, and
has sported pieces by Audemars Piguet
and Panerai in his films. Last year, he
appeared in The Expendables 3 with an
oversized U-boat on his wrist. But this
marks the first time the youngest win-
ner of Mr Olympia and movie action
hero has put his name to a brand.
“I wanted to develop watches that I
love, that are also affordable — most of
the watches I like are not considered
affordable,” says Mr Schwarzenegger.
(The Audemars Piguet Royal Oak Off-
shore Chronograph Arnold Schwarzen-
egger Legacy of 2011 retailed for
$40,200 on launch. Mr Schwarzeneg-
Furthermore, the only other time the
watchmaker has involved itself with
cars was in 1979, when one of its Riviera
watches was strapped to the road wheel
of a BMW M1 during the Le Mans 24-
hour race to demonstrate its robustness.
But while the name Shelby American
might not mean much to many people,
its most famous product, the Shelby
Cobra, has achieved almost mythical
status since it was first produced more
than 50 years ago.
The late Carroll Shelby was a Le
Mans-winning Texan racing driver, but
a heart problem ended his competition
career in 1959 at the age of 36. He went
on to put his love of cars to use by setting
up a performance driving school and
founding the tuning house Shelby
American.
In 1962, Shelby American began
importing British-built AC Ace road-
sters into the US and souping them up
with large capacity V8 Ford engines.
Fewer than 1,000 Shelby
Cobras were built during
the original, five-year
production run, but the
model proved success-
ful both as a high-per-
formance vehicle for
the wider market and
as a racing car,
achieving a top speed
(in its closed Daytona
Coupé form) of almost
190mph.
In 1965, a team of
The Capeland Shelby
Cobra is designed to
look like the car’s
instrument panel
ger’s relationship with Audemars Piguet
ended in 2011.)
“I wanted watches that could be mili-
tary-style to reflect my movies, elegant
and sporty — you can find plenty of
brands with one or two of those things,
but not all three,” he adds.
The company behind the AS brand is
Magnum Indústria da Amazonia, a Bra-
zilian manufacturer of mass-market
products that is virtually unknown out-
side South America.
The company says it owns the largest
business park in Latin America, which
produces goods ranging from calcula-
tors to lighters, as well as 5m watches a
year. These are allocated to dial names
such as Champion, which according to
the company has 4,000 models in its
inventory and is Brazil’s biggest-selling
watch brand.
Magnum is also the Brazilian distribu-
tor for the more familiar Bulova, Citizen
and Frédérique Constant names and
reports annual turnover of $125m.
Despite the Brazilian provenance of
the brand, Magnum’s intention is to
make the watches in Switzerland, using
a mix of Swiss quartz and mechanical
movements. One of Mr Schwarzeneg-
ger’s requirements was that his watches
should be Swiss-made, posing a chal-
lenge for Magnum, which is working
with Switzerland for the first time on
this project. The company’s Swiss
design partner is Studio Divine, which
has worked with TAG Heuer, Audemars
Piguet and SevenFriday.
Robert Graziano, the president of
FINANCIAL TIMES
Watches & Jewellery Brands
Cobra Daytonas travelled to Europe and
made Shelby the first (and still the only)
American carmaker to win the prestig-
ious World Manufacturers’ GT Champi-
onship, which had previously been the
domain of marques such as Ferrari and
Aston Martin. And it is this year’s 50th
anniversary of that victory that pro-
vided the catalyst for Baume & Mercier
to jump on to the car/watch bandwagon
with Shelby American as a partner.
“About a year ago,” explains Mr Zim-
mermann, “we worked with the photo-
grapher Peter Lindbergh to produce a
marketing campaign based on our ‘Life
is about moments’ strapline.
“One of Peter’s photos shows a man in
a classic sports car, and it was such a
powerful image that we decided to
explore the idea of matching the brand
with a car — and the one that seemed to
fit best was the Shelby Cobra.
“We approached Shelby American,
discovered that this year was the 50th
anniversary of the Cobra’s historic GT
Championship win and realised it repre-
sented a perfect opportunity to estab-
lish a partnership.
“It is not, however, a licensing deal.
We don’t need Shelby to sell our
watches, but we do believe that we can
enjoy a mutually beneficial partnership
over an extended period of time.”
Nowadays, building and selling so-
called “continuation” Cobras for
upwards of $100,000 apiece represents
only a tiny part of Shelby American’s
business, which is largely concerned
with upgrading the popular Ford Mus-
tang sports car.
Up until now, these have been
available only in American specifica-
tion. This year, however, the latest high-
Schwarzenegger: ‘Most of the watches I like are not considered affordable’
performance Mustang will go on sale in
Europe and will also become available
in UK-ready, right-hand-drive form,
which is partly what attracted Shelby to
the offer of a tie-up with Baume & Mer-
cier.
Gary Patterson, Shelby American’s
vice-president of international sales,
says: “We are aware that Shelby Ameri-
can is best known in the US, and this
year’s globalisation of the latest Mus-
tang model means we need to get our
brand known to a wider audience.
“So the fact that Baume & Mercier
already has a well established com-
munications strategy in Europe and the
rest of the world was certainly crucial in
our decision to enter into the partner-
ship.”
The first fruits of the tie-up are about
to reach stores in the form of two Cape-
land Shelby Cobra chronographs, one
being a £3,000 model in steel — limited
to 1,965 pieces in recognition of the
championship-winning year.
Cobra-inspired styling cues include a
“snake’s head” counterweight on the
second hand, a dial in Shelby’s signature
guardsman blue and sub-dials based on
the car’s instrument panel. The sap-
phire crystal case back, meanwhile, is
engraved with a facsimile of Carroll
Shelby’s signature.
A more exclusive version of the watch
comes in red gold, features a sophisti-
cated flyback chronograph movement
and is limited to 98 pieces in recognition
of Carroll Shelby’s famous racing
number. It costs £13,300. With a 1962
Shelby competition Cobra having sold
for almost $2m in the US last month,
that price seems unlikely to cause the
average Cobra owner to recoil.
Brand goes back
to school to find
first-class clients
Education
Baume & Mercier is hoping
to attract a younger
generation of buyers,
says Robin Swithinbank
In April, luxury Swiss watch brand
Baume & Mercier announced it would
be the “celebratory partner” of London
Business School for the graduating class
of 2015.
The deal is the latest in a series of part-
nerships between the brand and elite
international academic institutions that
are designed to help it gain traction with
a younger generation of watch buyers,
particularly those with high-flying
career prospects.
“Baume & Mercier is an initiation
brand,” says Alain Zimmermann, the
company’s chief executive. “And we’ve
got to reach young clients. Over the past
10 years, we’ve missed being connected
to these upcoming clients and needed a
place to meet them. The answer is
schools.”
The relationship with LBS is the ninth
established by Baume & Mercier as part
of a global strategy. It has already part-
nered with institutions such as the Hong
Kong University of Science and Technol-
ogy, the American University in Dubai
and the University of Bologna.
“We wanted to tie this partnership
into our celebration campaign, which
we launched last year,” says Mr Zim-
mermann.
“One of the first successes you cele-
brate in life is graduation. It’s very
important for us to communicate with
potential customers at the right
moment. Graduation is perfect.”
At each of its partner institutions,
Baume & Mercier awards top students
with specially engraved watches at cere-
monies that Mr Zimmermann describes
as “very emotional”.
But the partnerships are intended to
be more than sponsorship deals that
seize on a moment. “I don’t want to be a
sponsor, I want to be a partner,” he says.
“We didn’t just want to come and be a
firework on the last day. We are creating
touch points along the student’s life and
will take part in events where we lend
our expertise and insight.”
Mr Zimmermann says his brand will
be involved in between three and seven
events a year at each of the partner
schools, ranging from workshops and
business lectures to celebratory events.
LBS’s Student Association believes
that Baume & Mercier’s involvement
will open doors for its members.
Christina Brigati, the association’s
social affairs officer, who brokered the
deal, says: “London Business School’s
traditional recruitment sectors are con-
sulting and banking, but there’s been a
growing interest in recent years in retail,
and specifically in luxury.
“The partnership gives students an
opportunity to learn more about the
industry, not just about Baume & Mer-
cier, but about the group behind it.”
Magnum, expects to appoint a Swiss
manufacturing partner by mid-July.
Prices for AS watches are due to start
from $565 and go up to $2,790.
Mr Schwarzenegger was involved in
the design and branding processes. “I
sat down with the team from Magnum
early on and explained my vision,” he
says. “Magnum was able to deliver eve-
rything I wanted — an affordable, dura-
ble watch that looks ballsy.”
At Baselworld, more than 100 refer-
ences were unveiled, prompting some
critics to suggest the collection lacked
direction. Despite this, there will be 105
models in the range, broken down into
three lines, to reflect Mr Schwarzeneg-
ger’s time in bodybuilding, movies and
politics.
“Arnold knows exactly what he wants
‘I wanted [to create} an
affordable, durable watch
that looks ballsy ’
and likes,” says Mr Graziano, who co-
founded Magnum in 1990. “He gave us
ideas and we came up with some
designs. Once we presented the designs,
there were certain things he felt strongly
about and we made the changes he
wanted.
“The logo, for example — initially he
didn’t like what we came up with, so he
guided us and we changed it. There is so
much of Arnold in our designs.”
Friday 5 June 2015
That group is Richemont, which
announced annual results last month.
Net income for the year to March 31 was
€1.33bn, down 35 per cent on the year,
in line with expectations after the group
issued a profit warning in April. Sales
were up 4 per cent to €10bn.
Baume & Mercier is the entry-level
brand in the group’s portfolio of watch
companies, and the hope is that rela-
tionships made with young consumers
will lead to purchases from the group’s
top-end luxury brands (which include
Cartier, IWC, Jaeger-LeCoultre and
Vacheron Constantin), as the purchas-
ing power of high-achieving students
increases.
Last year, Baume & Mercier ran a pilot
project with Ecole Hôtelière de
Lausanne, the hotel management
school. The partnership began after the
school’s students had lobbied for greater
input from luxury businesses.
Matthew Crudgington, EHL’s head of
partnerships, says: “Students realise
that the real-life insight from our part-
ners is what sticks in the mind.”
According to Mr Crudgington, brands
have more to gain from partnering with
schools than simply raising awareness
of their businesses.
“Although the school is focused on
hospitality, there’s a lot of attraction
from other industries that want stu-
dents they can train to work in their
businesses,” he says.
“We’re seeing more and more interest
[in our students] from luxury brands,
and particularly from watchmaking.”
Mr Zimmermann has been quick to
use the reciprocal nature of his partner-
ships to his advantage.
At the Solvay Brussels School of Eco-
nomics and Management, for example,
he initiated what he describes as a busi-
Baume & Mercier’s
Alain Zimmermann
sees graduation
as the perfect
moment to
communicate
ness game, in which students were
invited to submit ideas about where
Baume & Mercier should be in 20 years.
“We had 150 answers,” he says. “The
submissions were so inspiring. It was
extremely reassuring to see that in this
time of connectivity, there is still space
in the minds of young people for tradi-
tional watchmaking.”
Mr Zimmermann stresses that the
primary benefit of these partnerships is
the opportunity to link perceptions of
the brand with a landmark moment in
an individual’s life. “Suddenly, we are
the partner of some of life’s most emo-
tional events,” he says. “Can I measure
this? Definitely not. But will I benefit
from it?
“When I see the response on the spot
at the events I attend — not just from
students but also family members and
alumni — I see that in their minds our
brand stands for something positive.
“It means that for generation after
generation we will be close to people.”
The designs are bold. In the Hero col-
lection of movie-inspired watches, there
is a piece with a crown protector made
in the shape of a grenade pin, recalling
the 1980s violent thriller Commando.
Another has a red piece of glass
over a section of the dial, much like the
eye of the cyborg Mr Schwarzenegger
played in the 30-year-old Terminator
franchise, which returns with a fifth
instalment this summer. Mr Graziano
believes AS watches — which will be
55mm in diameter — will appeal to
men between 20 and 55 who are “self-
confident, entrepreneurs, natural
leaders”.
In year one, the target is to distribute
the brand in 20 territories, including the
US and UK. “We intend to implement a
360-degree marketing approach and we
have a $4m, year-one marketing
budget,” says Mr Graziano. “Arnold
Schwarzenegger will be our brand
ambassador, which will give us our
unique selling point.”
UK retailers have so far been reluc-
tant to invest in the brand, having only
seen prototypes. Privately, some have
questioned the price point, with most of
the collection set to sit between £500
and £750, a notoriously tricky bracket,
and one made more complicated by the
arrival of Apple Watch.
Mr Graziano says: “We previewed the
collection during Baselworld and it was
very well received. We have many
potential distribution candidates in
most European countries. We’re in the
process of choosing the right partners.”
Friday 5 June 2015 ★ FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Friday 5 June 2015

Watches & Jewellery Technology

Sophisticated clients continue A leap into the future Every second counts

to search for handcrafted luxury

Montblanc
Adapting products for the
digital age proves a creative
strategy, says Sarah Murray
Managing a 100-year-old company
known for handcrafted fountain pens,
watches and other luxury goods is no
easy task when the tablet is the new
writing instrument and watches have
become minicomputers.
Montblanc’s response has not been to
move into digital devices but to adapt its
products to meet demand for techno-
logical innovation.
Of course, in one sense, what the com-
pany offers is an experience that is still
firmly rooted in the past. “We want any-
one who comes through the door at
Montblanc to have an experience simi-
lar to visiting your tailor 100 years ago,”
says Jérôme Lambert, the company’s
chief executive.
However, Mr Lambert, who before
joining Montblanc was chief executive
of Jaeger-LeCoultre, the Swiss luxury
watchmaker, believes that the digital
era is creating opportunities for the
company.
He argues that instant access to infor-
mation and social media is creating
more sophisticated customers, who still
value the personal experience of buying
luxury goods in a store.
“You might have thought that with a
good website and a few guys you could
organise the market for your company.
But it’s the opposite,” says Mr Lambert.
“The amount of information means cli-
ents’ attention to detail is growing.”
And, while maintaining a highly per-
sonalised service in its stores remains a
priority, the company has not shied
away from the digital era. Montblanc
has an iPhone app, as well as a presence
on everything from YouTube and Face-
book to Pinterest and Twitter.
In fact, Mr Lambert sees digital infor-
mation as prompting a rise in buyers’
understanding of complex products and
an increased level of interest in the tech-
nical aspects of the company’s watches
and pens.
One example is the Orbis Terrarum,
which launched this year and intro-
duced a new complication with its
multi-layered dial of sapphire crystal
showing the continents as if viewed
from the North Pole, encircled by the
names of the 24 cities representing the
world’s time zones.
Under cutouts of the continents, a disc
shows day and night, while the 24 time
zones rotate with the movement’s
mechanism causing the continents to
change colour as day turns to night
and making it possible to tell what
time of day or night it is anywhere in the
world.
Mr Lambert believes that this kind of
sophistication is something buyers are
Jérôme Lambert: company offers an
experience rooted in the past
looking for. “In our industry you often
hear such sentences as ‘It will never sell’
or ‘The client will not understand’. We
believe that was maybe the case 15 years
ago, but this has changed. For me that’s
where there’s a real disruption.”
Meanwhile, the company has also had
to decide how to respond to the advent
of products such as the Apple Watch and
other digital wearables.
The challenge that digital technology
presents for any company in the busi-
ness of haute horlogerie lies in the fact
that innovations materialise as rapidly
as the rate at which consumers want to
upgrade to new products.
“One of the key fundamentals of lux-
ury is its value and its long-lasting
nature,” says Mr Lambert.
“And when you go to technology, the
first thing people tell you is that every 18
months, its value halves. So you see two
curves that are moving in the opposite
direction.”
For the company, the solution was
not to move into the realm of digital
devices.
Instead, Montblanc has developed
new versions of traditional products.
For example, its StarWalker pen allows
users to switch between writing on
paper and writing on touchscreens.
And instead of developing a digital
watch, the company turned to the strap
as the vehicle for its first foray into
wearable technology. The e-Strap is an Hoptroff will be the first to insert a leap second into its quartz and atomic models
interchangeable watch strap that can
connect to certain smartphones. At the end of this month watchmaker Hoptroff will take a leap Hoptroff. “We added the capability in tandem with our
Mr Lambert welcomes the advance of into the future. automatic daylight saving adjustment, but this is the first
technology and the challenges it brings On June 30 at 23.59.59 their watches — both quartz and opportunity to see it happen for real.”
to companies, such as Montblanc, to up atomic — will be the first to insert a leap second at the The leap second’s adjustment information will be sent to
their game. correct moment. the watch in advance via a Bluetooth connection from the
“Embracing doesn’t mean fusion,” he “The earth’s spin speeds up and slows down erratically, so owner’s mobile phone.
says. “I find that where there is a new every few years, astronomers have to add a leap second to “You only need to have connected to the watch some time
paradigm, there is an opportunity for time to keep it correct,” explains managing director Richard in the past few months,” adds Mr Hoptroff.
creativity.”

Introducing the smart strap If the Apple Watch

Connected devices Watch this year. Although also owned
fails then the
Brands are innovating
and developing devices
by Richemont, the brand has chosen a
different technology partner from
Montblanc.
The success of these offerings may
smartwatch will fail
with different depend on who is willing to create apps.
At the Apple Watch launch, brands mind that Smartwatch Group’s research
applications to take on such as Starwood and BMW rushed to
Review shows that the 89 companies in the mix
the Apple Watch, offer iOS apps that unlock guest rooms
Robin Swithinbank discovers before Apple joined the fray managed to
and cars. sell 6.8m watches between them in
reports Syl Tang Sports companies, such as ESPN, plan he would rather have an 2014, that is a serious shot in the arm.
to zip sports scores on to the wrist and orange than an Apple Watch However, Apple probably will not

E
ven before the Apple Watch
went on sale on April 24th,
the company had sold more
than 1m pieces during the
first hours of pre-ordering.
While these analysts’ figures came as
no surprise to technophiles, the watch
community has been less enthusiastic.
Many attendees at SIHH (Salon Inter-
national de la Haute Horlogerie) in Jan-
uary — Richemont’s annual conference
— had dismissed the impact of a smart
watch.
However, at least one SIHH brand was
prepared for the changing tide: Mont-
blanc. On display at SIHH and currently
being promoted is a “smart” watch strap
the company has introduced within its
line of TimeWalker watches.
Alexander Schmiedt, global manag-
ing director of watches at the company,
says: “Montblanc believes each item
should be a lifetime companion; that
you will love it even more in 30 or 40
years, focusing on the craftsmanship
and quality.
“But . . . the smart technology life
cycle is the exact opposite. In 12 months,
it’s on to the next generation and in two
years you can throw it away.”
At press time, a prototype had yet to
be made available, but the strap, known
as the Urban Speed e-Strap, will use a
Montblanc app to work with select
Android and iOS smartphones.
It will offer a digital display of: activity
tracking; email, text and social media
notifications; music and camera remote
control; and Find-Me functions (for
locating a cell phone).
For 2015, the e-Strap, which charges
every five days via a micro-USB cable
and comes with two years’ of app
updates, will be available to buyers of
new TimeWalker watches on five mod-
els priced from €3,000 to €4,500.
Although the company would not
confirm a release date, it suggested that
the strap would be a standalone offering
in 2016 at a €300-€400 price point.
Another mid-priced luxury watch-
maker that believes watch lovers might
want some piece of the technological pie
is TAG Heuer, which announced a part-
nership with Google and Intel in mid-
March.
Jean-Claude Biver, chief executive of
TAG Heuer, says: “If you’re a luxury
brand with an entry price that is high
but still reachable, say $1,200-$1,500 —
at that price level you should consider
the technology.”
“Where the entry price, such as for
financial services groups such as Citi will
provide account balances and usage
notifications.
However, analysts believe that bat-
tery life will be the deciding factor.
Jon Cox of Kepler Cheuvreux, the
financial services company, says: “We
can’t have a computer on our wrist
because of the power issue. For the time
being the Apple Watch is an upmarket
fitness band and only has 18 hours of
power, so you have to take it off at
night. That makes it difficult to monitor
fitness.”
Frederique Constant and its sister
brand Alpina are hoping to address bat-
tery life with their entry into the smart
market. In February, they announced a
partnership with Fullpower Technolo-
gies, an intellectual property and tech-
nology licensing company.
Fullpower has formed Manufacture
Modules Technologies (MMT), a joint
venture with Union Horlogere Holdings,
and has launched the MotionX Horolog-
ical Smartwatch Open Platform for the
Swiss watch industry.
Frederique Hublot, is $10,000, you can forget the The platform puts motion tracking
Constant connected watch, because no one buys a into five Constant and eight Alpina
Horological watch that will become obsolete. styles with a dial that displays the per-
Smartwatch and “OK, there might be a few lunatics, centage of the wearer’s fitness goal
below the Alpina but it’s not the market.” reached each day and the level of sleep
Horological Of those watches priced up to attained. A connected app, accessed on
Smartwatch SFr2,000 ($2,150), the majority of an individual’s phone, allows health
which are quartz, experts estimate that goals to be set.
40-50 per cent of these 20m pieces will “We don’t think that consumers want
be “smart” within two to three years. to charge a third device in addition to
TAG, which plans to reveal a proto- their cell phone and laptop. That’s the
type this month, will begin delivery Achilles heel of the e-Strap and other
of its first smart watch in October, offerings,” says Peter Stas, chief exec-
priced at approximately $1,200. utive of Constant and Alpina.
It will be followed next April “This watch stays charged for
by a second model with dif- two years. Activity tracking on
ferent applications. While the wrist is much more accu-
few details were available, rate than on a phone. That’s
TAG has indicated that much more the direction
the watch may offer we’re interested in
functions connected to going.”
The strap its marketing and fan Fullpower is offering
will offer a base. TAG sponsors the the MMT platform to
Monaco Grand Prix, For- other watchmakers and
digital mula E and the Indy 500. hopes to make 100,000 pieces
display of A watch brand’s financial in 2015.
ability to spend on research Ultimately, the success of the
activity and development or partner smartwatch (and strap) will
tracking, with a technology group will be depend on consumer demand.
instrumental in what consumers However, Mr Schmiedt is confident
email, text decide to purchase. that the high-end watch market will
and social Early last month, IWC Schaff- not be affected.
hausen announced plans to release “Nobody buys a watch at this level
media the IWC Connect, another strap- [$5,000-plus] just to know what the
notifications driven offering, which will initially be time is. So in this way the smartwatch
available alongside the IWC Big Pilot’s will never affect that.”
These are peculiar times for watch
industry critics. For years, the job has
been all about Switzerland — with hon-
ourable mentions for Germany, Japan
and even the UK — but of late the focus
has been on smartwatches, which are
not Swiss at all.
And when I say all about smart-
watches, of course I mean the Apple
Watch. Smartwatches have been a buzz-
ing gnat in the ear for years, technology
that no serious watch person would ever
give the time of day to. But Apple is
changing the conversation.
This is despite the fact that many crit-
ics will tell you the Apple Watch is not
really a watch at all. Imagined in Silicon
Valley and made in east Asia, it is a very
clever computer, which, among many
other things, sits on the wrist and tells
the time.
Comparing its chips and pixels with
the balance springs and escapement
wheels of a conventional timepiece is
like comparing apples with oranges.
But it is a watch — at least the watch
industry certainly seems to think so.
Ask IWC, Breitling, Montblanc, Bulgari,
Gucci, Frédérique Constant et al why
they have made “connected” watches
this year and they will all say smart-
watches are the next big thing.
We will all be wearing them before we
know it, says the conventional wisdom
— and you have to be in it to win it.
Or will we? Samsung made the world’s
first watch phone in 1999, though few
remember that. Sony has been trying to
recapture its Walkman glory days with
smartwatches for years, with a support-
ing cast that includes fellow tech groups
LG and Pebble, but it has made almost
no impression on the market.
Admittedly, sales of smartwatches
rose 82 per cent last year, to $1.29bn,
according to data gathered by Smart-
watch Group. But that figure is eclipsed
by global smartphone sales, which
research agency GfK says hit $381bn last
year. We are sold on smartphones, but
the jury is still out on smartwatches.
So a lot hangs on the Apple Watch. If it
fails, the smartwatch fails. Slice Intelli-
gence estimated that 957,000 Ameri-
cans pre-ordered Apple Watches on
launch day in April, dwarfing the
720,000 Android Wear watches sold in
the US for 2014, according to Canalys.
Analysts think Apple will sell any-
where between 10m-45m watches
before the end of the year. Bearing in
have to do it all alone. Before the year is
out, watchmaking icons Swatch and
TAG Heuer are due to plug in too. TAG’s
solution comes with backing from
Google and Intel, which should mean it
is taken seriously.
But if smartwatches are going to catch
on, it will be down to the younger gener-
ation. A fresh-faced “Appleyte”, in the
company’s Regent Street store in Lon-
don, told me she had never worn a
watch before, because it was a “sole pur-
pose device”. A watch that only tells the
time is not enough any more — not least
because now there is a watch that can
also pay for your coffee and make voice-
activated phone calls.
Apple lent me one of its watches at its
launch and it is astonishingly good at
most of what it does and a brilliant piece
of engineering. The notification centre
is a neat smartphone bypass that I found
less disruptive than I had expected and
it made taking phone calls while tying
my shoelaces a doddle. Even the battery
life was all right — I managed three days
on a single charge on one occasion and
averaged two.
Smartwatches
were a buzzing
gnat in the ear for
years, but Apple
Watch is changing
the conversation
But the activity tracker and its hourly
reminder to stand up drove me to
despair. The maps are flawed and I can-
not think why you would choose to read
an email on a screen not much bigger
than your thumb, digital crown or no.
And you cannot tell the time without
raising your arm to your face — which in
many situations is totally inappropriate.
What is most troubling, though, is the
idea that someone might waive an
entry-level Swiss mechanical at say
£500 for a piece of technology that will
be obsolete by teatime.
Hamilton, Tissot and Oris will bring
out watches in the next few years, but
these will not make those they are mak-
ing today redundant. And that is
because these brands are not currently
considering how to integrate a camera
into the next generation of their prod-
uct, or make maps work.
And for that reason, I will take an
orange over an Apple any day.
The writer is a journalist and watch critic
and editor of Calibre watch magazine
Friday 5 June 2015 ★ FINANCIAL TIMES 7

Watches & Jewellery

Bulgari Diagono Bulgari’s ‘intelligent’ luxury watch

Magnesium
Wrist Vault
The reaction of the traditional watch
Sapphire crystal industry to the arrival of the Apple
Watch and other forms of connected
wristwear has been decidedly varied.
But perhaps the most unusual
counter to the perceived threat that
smartwatches pose to clockwork
Ceramic bezel comes from Bulgari’s Diagono
Magnesium Wrist Vault, which claims
Screw to be “the first intelligent luxury
watch”.
Still a concept, but — according to a
Bulgari insider — certain to become
Motorlac finish dial reality, the Wrist Vault has been
Ceramic insert developed with Swiss digital secure
storage specialist WISeKey and uses a
cryptographic chip inside the case to
hold personal data.
Peek insert
Magnesium case An invisible antenna, also mounted
within the watch, can then connect
with a smartphone using near field
technology (NFT) to transmit a “digital
certificate” securely from the Bulgari
Vault application previously
downloaded on to an iOS or Android
Date disc smartphone. Only the owner of the
watch has access to the data, which
Bulgari says will be stored with
“banking-level” security.
Lugs peek insert The idea is that the watch could be
Back cover used for everything, from storing
codes to transmitting payments and
even remotely opening car doors. NFT
is said to be a very secure form of data
transfer because it works only when
FT graphic Source: Bulgari
the paired devices are close together.
In the event of the phone being lost
or stolen, any data — which will be
stored on a “cloud” inside a Swiss
military bunker — can be instantly
destroyed, but later retrieved by the
rightful owner using an encrypted
back-up in the watch.
The Diagono Magnesium timepiece
selected as the basis for the device is
already on sale at a relatively modest
£3,120 in its standard form. The piece
has a 41mm steel case and is equipped
with a centre made from a combination
of lightweight magnesium and
polyether ether ketone and has a bezel
made from scratch-resistant ceramic.
The striking, grained finish of the
case middle and dial is created using a
material called Motorlac. This is more
commonly associated with high-
performance engine building, where it
is used as a friction-reducing coating
capable of withstanding high
temperatures and extremes of
expansion and contraction.
Motorlac is available in a range of
distinctive colours, including the
copper brown, anthracite grey and
deep-blue hues that make the Bulgari
Diagono Magnesium one of the most
unusual-looking and attractive
watches to have emerged from this
year’s Baselworld show.
Simon de Burton

‘I have a piece of
gold in my hands’
Interview currently our Three Gold Bridges is only
available in haute horlogerie with the
Antonio Calce, Sowind tourbillon.
chief executive, “We are working on models with
different price segments that include
will promote the other complications to give clients the
opportunity to wear a Girard-Perregaux
brand’s history, says watch with that iconic design element.”
Anthony DeMarco Among the models that are under
development are two-gold and one-gold
bridge timepieces, he says. The brand

C
onsiderable personnel
moves among watch and
jewellery companies were in
evidence at Baselworld
recently, but none was as
radical as the changes at Sowind Group.
From top to bottom, there were new
faces in the exhibition booths for the
group’s two luxury brands — Girard-
Perregaux and JeanRichard.
Antonio Calce, the former chief
executive of Corum, an independent
Swiss luxury watch brand, was
appointed Sowind chief executive in
January, replacing Michele Sofisti, who
had held the position for the previous
three years.
Kering, the French luxury and
lifestyle holding company, owns a 50.1
per cent stake in Sowind, with Sowind
founder Luigi Macaluso and his family
owning the remaining capital. The
company does not disclose separate
sales and profit figures for Sowind, but
says that watches made up 4 per cent of
its luxury revenue in 2014.
Mr Calce (pictured below) has two very
different brands under his charge.
Girard-Perregaux, which dates from
1791, operates on the loftiest levels of
haute horlogerie, producing high-end
complications such as its Three Gold
Bridge Tourbillion. In 2013, the brand
was awarded the Aiguille d’Or at
the Geneva Watchmaking Grand
Prix for its groundbreaking
Constant Escapement
LM timepiece.
JeanRichard is a
lifestyle watch
brand that built its
identity around
the slogan
“Philosophy of
Life”. It has
partnerships with
people and groups in
a variety of fields,
ranging from tightrope
walker Nik Wallenda, chef
Luca Manfe and the Arsenal
football team.
Mr Calce says that his primary focus is
on Girard-Perregaux with the goal of
enhancing its value. “I have a long-term
vision and a short deadline to deliver,”
he says.
“I have a piece of gold in my hands
and I need to capitalise on its history
and heritage. Everybody has to know
what Girard-Perregaux is. This is my
main goal for the next few years.”
Mr Calce is developing what he
describes as “product families”, watches
at tiered pricing levels based on Girard-
Perregaux’s high-end models. He
believes that too much product is priced
at the high end.
“We will pursue the development of
manufactured high-end products,” he
says. “However, we need to develop
families around existing collections
with different price segments.
“We will adapt our offerings by
enlarging our collections. For example,
has already introduced a piece from the
1966 collection made in steel, instead of
gold.
Mr Calce is enthusiastic about
working with Ateliers Bautte, a little-
known, high-end case manufacturer
that Sowind Group acquired in 2007
and uses to create Girard-Perregaux
cases. Mr Calce considers the
manufacturer a part of the brand’s
heritage that he admires and wants
others to know about.
“I am a person dedicated to the
product and to craftsmanship,” he says.
“I am totally committed to undertake
this new challenge for a company that
deserves deep respect in the watch
industry.”
Communication is a large part of Mr
Calce’s strategy for both brands. For
Girard-Perregaux, he plans to use the
brand’s museum in La Chaux-de-Fonds,
Switzerland, which he says is
underutilised, as a way to explain the
company’s history. This will include
travelling exhibitions.
For JeanRichard, the current focus is
on the popular Terrascope collection. At
Baselworld, the brand launched a
Terrascope GMT and an all-black
carbon Terrascope.
Mr Calce has been in the watch
business for 21 years. Most of that time
has been spent with Richemont Group’s
Officine Panerai and Piaget brands
in various high-level
positions, and most
recently he was at
Corum.
Now that he is
once again working
for a big group one
of the things he
appreciates is the
opportunity for
synergy. For
example, Sowind
shares distribution in
the US with luxury watch
brand Ulysse Nardin, recently
acquired by Kering.
Mr Calce says that there will be
further opportunities for this kind of
collaboration, although he refuses to
elaborate.
He believes that the main challenge
facing the Swiss watch industry lies in
communicating the Swiss pedigree.
“It is important to let people know
that when you buy a Girard-Perregaux,
Swiss-manufactured timepiece, you
buy a piece of art that is durable. It is not
a trend. It is the acquisition of
craftsmanship, of an exclusive product.”
This extends to smart watches and
other “wearables”, which some see as a
threat to the watch industry. Unlike
several Swiss watch companies, Mr
Calce has no plans to introduce such a
device for either brand.
“We have a different vision of the
timepiece. When [our clients] choose a
Girard-Perregaux, they choose codes of
elegance and tradition. A mechanical
watch has a heart.”
8 ★ FINANCIAL TIMES Friday 5 June 2015

Watches & Jewellery

‘Lunch with the Queen was a true career highlight’

Interview
Arnaud Bamberger
Cartier UK
The executive chairman
planned to stay only two
years at Cartier UK —
23 years later, he is retiring,
writes Simon de Burton
London’s luxury goods firmament will
lose a bright star in a couple of months
when one of its best-loved fixtures is to
retire.
Arnaud Bamberger, the Anglophile
Frenchman who has become so well
integrated in to English society that he
drives a Bentley, lunches with the Queen
and shoots at Blenheim Palace, is
stepping down from his role as
executive chairman of Cartier UK in
August. He had arrived “for a couple of
years” in 1992.
During his eventual 23 years at the
helm Mr Bamberger, who will be 70
when he leaves, has achieved what he
set out to do in blowing the dust off the
Cartier brand in the UK and returning it
to a position worthy of its “king of
jewellers and jeweller of kings”
sobriquet. Cartier says that Mr
Bamberger has helped more than treble
turnover.
His career with the company dates
back to 1975, when his cosmopolitan
flair was recognised by Cartier’s then-
president, Alain Dominique Perrin, who
hired him as export director at a time
when the company was trying to regain
some of the sparkle it had enjoyed in its
heyday 50 years before.
Mr Bamberger travelled the globe in
the role, then moved to New York where
he opened 15 US Cartier stores in eight
years before returning to Paris to work
as worldwide retail director responsible
for 175 boutiques. Then, at the nadir of
the early 1990s recession, he was asked
to move to London and “shake up the
brand”.
“Cartier was already a famous name
in the UK, but the challenge lay in the
fact that it had become something of a
sleeping giant,” he recalls.
“My job was to put it back into
people’s minds as the jeweller it was in
the 1920s and 1930s.”
He set out to reconnect the Cartier
name with aristocrats, members of high
society and any other movers and
shakers he deemed appropriate by
associating it with the sort of events he
believed his target audience might like
to attend.
These events ranged from the Chelsea
Flower Show to the Goodwood Festival
of Speed, where Cartier holds its annual
Style et Luxe concours d’élégance.
One of the most successful tie-ups,
however, has proved to be with the elite
world of polo, which Mr Bamberger first
involved Cartier with in America.
“The association with polo really
helped to rejuvenate the brand in the
UK and restored some of its aura,” he
says.
“In the old format of the Cartier
International Day, we had as many as
30,000 people attending — although I
must admit, they were not all polo fans.
Many came for the Chinawhite club”
[exclusive nightclub].
Nowadays, Cartier sponsors the
Queen’s Cup matches at the Guards
Polo Club each June — an event that has
enabled Mr Bamberger to continue a
long acquaintance with the Queen
which is recorded in the numerous
photographs of himself and Her Majesty
which are spread around his Bond Street
office.
“I first met the Queen 23 years ago
and I feel very honoured to be able to say
that I am probably one of the French
guys who has met her the most,” says Mr
Bamberger, who was awarded the
Légion d’honneur in 2009.
“In fact, I enjoyed one of the most
memorable days of my life three years
ago during Royal Ascot when my wife
Carla and I were invited to a small lunch
with the Queen and Prince Philip at
Windsor Castle. It was one of the true
highlights of my career.”
He attributes his successful (and
commercially important) integration
into English society to the simple fact
that he has always been sure to “make
Bamberger with an effort” — and that he appreciates the
the Queen at the way the English behave.
Cartier Queen’s “My French colleagues often ask me
Cup, one of the how I have managed to meet so many
leading polo English people and to develop so many
tournaments friendships — and my first response is to
say that I make the effort to let people
know that I really like this country.
“I also love the fact that the English
can be so self-deprecating and know
how to make fun of themselves. I have
learnt to be that way, too.”
Additionally, his love of shooting
has earned him access to some of
Britain’s greatest stately homes — and
their suitably wealthy owners, who
know whom to contact when the need
arises for a special wrist watch or piece
of jewellery.
But, says Mr Bamberger, while his
mission to promote Cartier was
successful, today’s business is very
different from how it was when he
arrived in the early 1990s.
“We are once again back in the high
jewellery game and have returned to a
position where our design and creativity
are what we are known for.
“What has also changed radically is
London itself. It has become a
worldwide centre for captains of
industry and a real draw for people from
places such as the Middle East and Asia,
making it one of the most international
cities in the world and one of the truly
great shopping destinations.”
But what does retirement hold for a
man who has spent more than half his
life in the luxury fast lane?
“I shall remain as honorary chairman
of Cartier UK, but I’m very much
looking forward to dedicating more
time to my wife and children, more time
My to travelling for enjoyment rather than
challenge business and more time to improving
my golf handicap,” he says.
was in “One thing I shan’t be doing however,
‘awakening is leaving England. I might always be a
frog, but hopefully ‘les rosbifs’ will
the sleeping continue to be nice to me, because I love
giant’ it here. After all these years, I feel totally
at home.”

Manufactured, assembled and Phillips eclipses

decorated — in 28.5 seconds rivals as it returns
Swatch The company is
to Geneva sale
building a second
Sistem51 plant and may Auctions and collecting
lift production of its Patek Phillipe and rare
robot-built watches to vintage pieces dominate
2m units a year, says the four-day spring event,
Robin Swithinbank writes Simon de Burton

S
watch has confirmed plans to
double the manufacturing
capacity behind its Sistem51
watch, in a move that is
expected to increase annual
production of the groundbreaking prod-
uct to 2m units a year.
Construction is under way on a sec-
ond plant that is due for completion in
spring 2016, on the company’s Boncourt
site in northwest Switzerland.
The development is a clear indication
of Swatch’s belief in the profitability of
its pioneering project. Sistem51 is the
only watch in the world made and
assembled entirely (bar the strap) by
automated machines. It first went on
sale in the UK in August last year, priced
at £108.
The plant will mirror the existing
Boncourt factory, a 17,500 sq ft eco-facil-
ity with 15,000 sq ft of manufacturing
space. A percentage of the floor space is
given over to other watchmaking activi-
ties run by ETA, the Swatch Group-
owned specialist movement manufac-
turing division, that helped Swatch
develop Sistem51’s innovative calibre.
Although figures published by the
Swiss watch industry do not detail indi-
vidual brand activity, it is widely
believed that this year Sistem51 will
become Switzerland’s number one
mechanical watch by volume.
In 2014, the Federation of the Swiss
Watch Industry reported that exports of
Swiss made mechanical watches were
up 9 per cent to 8.1m, an increase that
Sistem51 is in part responsible for. With
annual production set to reach 2m by
2017, Sistem51 could soon account for
almost a quarter of Switzerland’s
mechanical watch exports.
Such volumes are only made possible
by the automated system that produces
Sistem51, which was developed by one
of Swatch Group’s subsidiary companies
specialising in machine manufacturing.
Swatch has never declared its invest-
ment in the facility, although in 2013 the
group reported a 19.5 per cent growth in
the value of its property, equipment and
plant rising to SFr2.3bn ($2.46bn).
There are more than 400 machines
inside the existing factory, some of
which have up to 12 modules. These are
in operation for 24 hours a day, five and
sometimes six days a week, across
three, eight-hour shifts. The production
line produces 4,000 watches a day.
Swatch says that the theoretical time
it takes to manufacture, assemble and
decorate a single movement is 28.5 sec-
onds, a counter-cultural admission in an
industry that places great value on the
time involved in creating its product.
Sistem51 was introduced for Swatch’s
30th anniversary in 2013. The original
quartz “second watch” was launched in
1983 and sold 50m units in its first five
years, netting Swatch’s founder Nicolas
The Geneva watch auctions that take
place in May have traditionally been
dominated by luxury brands, Antiquo-
rum, Christie’s and Sotheby’s. This year
however, Phillips has rejoined the fray.
Although the auction house had not
staged a specialist horological sale since
the early 2000s, it managed to eclipse
the opposition last month with a
SFr29.6m ($31.2m) total that almost
doubled that of its nearest rival.
The undoubted key to its success lay
in the return to the rostrum of gavel-
swinging wunderkind Aurel Bacs, the
former Christie’s star who left the house
in 2013 to set up a consultancy which
has since partnered with Phillips to
facilitate its return to watch auctions.
With hindsight, Phillips was always
going to hit the ground running. Mr Bacs
is considered an horological pied piper.
High-end buyers and sellers tend to
gravitate to him, assured by his reputa-
tion for being able to put the right
watches in front of the right people at
the right money.
To give his return some added pizz-
azz, Mr Bacs made the inaugural Phil-
lips sale a two-day affair, starting with a
themed auction dedicated to the Rolex
Day-Date, the brand’s most prestigious
model, conceived in 1955. The 60 rari-
ties sold for a total of SFr6.1m, with the
highest sum — a record SFr473,000 —
being paid for a so-called Big Kahuna
variation, one of only two known to
exist in platinum.
But the Glamorous Day-Date sale
proved little more than a warm-up exer-
cise. The following day 164 watches
grossed SFr23.46m and saw records
established for any steel wrist watch at
auction — SFr4.6m for a 1927 Patek
Assembly line Hayek a fortune that he used to invest in $448m (£274m at the time) plus $9m in Philippe chronograph — and for any
for the Swatch and revive flagging Swiss watch compa- legal fees. In 2013, it completed a $1bn Rolex at auction — SFr1.3m for an
Sistem51 watch nies such as Omega, Longines and takeover of New York jeweller Harry “albino” Rolex Cosmograph Daytona
(below right) Breguet. In 2007, three years before his Winston, a deal that has since helped it that once belonged to rock star Eric
death, Mr Hayek’s wealth was estimated offset the negative impact of the over- Clapton.
at $3.2bn by Forbes, making him the valued Swiss franc. Two other watches also broke the
world’s 273rd richest person at the time. Sistem51 sales to date have not been seven-figure barrier, vindicating the
The Sistem51 project has all the eco- made public, but it has been a critical decision of Edward Dolman, Phillips
nomic hallmarks of its quartz ances- success thanks to its 90-hour power chairman and chief executive, to bring
tor. It will be expected to boost reserve and Swatch’s insistence that the house back into what is a highly
Swatch Group’s operating profits, it will never need maintaining — an competitive market.
which stood at SFr1.75bn in 2014, unheard of claim in mechanical He said: “Considering that the Phillips
and give the company much- watchmaking where moving watch department was only launched in
It is the only needed leverage in takeover parts are said to need cleaning November, it pays the greatest testa-
deals. and relubricating every few ment to the team and to the stewardship
watch The watch industry is domi- years. and reputation of Aurel Bacs and [his
made and nated by a small number of pow- It may also have a significant wife] Livia Russo to have achieved so
erful groups, including Richemont, impact on the watch industry. much in so little time.”
assembled LVMH, Kering and recently China “Sistem51 is no more than a pre- The Phillips triumph was a hard act to
entirely Haidian, making the industry more mium Swatch,” says James Gurney, follow. Antiquorum was first up with an
competitive than ever. director of SalonQP, London’s annual offering of 504 lots that fetched a total of
(bar the Swatch’s ambitions have met with fine watchmaking fair. SFr6.5m, the highlight being an exam-
strap) by mixed fortunes in recent years. ”Its construction, however, may have ple of Patek Philippe’s Reference 2499
In 2007 it entered into a 20-year joint lessons for more expensive watches, perpetual calendar model, considered
automated venture with Tiffany that ended acrimo- particularly as the market adjusts to the by many to be among the most collecta-
machines niously in 2013 when a Dutch court arrival of connected watches,” adds Mr ble of all vintage watches.
ordered Tiffany to pay Swatch Group Gurney. With the added attraction of having a
Aurel Bacs at the Phillips auction
dial signed by the retailer Tiffany, it sold
for SFr471,500, while a highly compli-
cated Louis Audemars pocket watch,
which was presented to a Spanish count
in 1920 by King Alphonse XIII, realised
SFr351,750.
A perhaps more recognisable celeb-
rity connection came in the form of a
Jaeger-LeCoultre Reverso that origi-
nally belonged to the celebrated US
general Douglas MacArthur and which
was engraved on the back with his ini-
tials. It made SFr87,500, quadruple its
estimate.
Christie’s achieved the best overall
result after Phillips, grossing SFr15.4m
and achieving a 99 per cent sale rate
from 314 watches offered. Typically,
Patek Philippe pieces dominated, with a
2006 Sky Moon Tourbillon — one of the
brand’s most complex models and now
discontinued — selling to a private col-
lector for almost SFr1.1m.
The Christie’s sale also saw records for
a Patek ‘Nautilus’ at SFr845,000, an
The key to its success lay in
the gavel-swinging
wunderkind Aurel Bacs
Audemars Piguet minute repeater from
1951 which sold for SFr605,000 and a
1930s Rolex chronograph, which
exceeded its presale estimate by 10
times to fetch a price of SFr341,000.
It was then left to Sotheby’s to round
off Geneva’s four-day watch auction
extravaganza with an offering of 326
lots, a sizeable 93 of which failed to find
buyers — resulting in a disappointing
71.5 per cent sale rate. All of the top 10
sellers were Patek Philippe pieces, with
the highlight being a collectable Refer-
ence 5207P tourbillon with perpetual
calendar and leap-year indication that
made SFr586,000.
To discover if Phillips’ dominance of
the market will continue, auction fol-
lowers must wait until the flagship
Geneva sales in November. Between
now and then, the lull in international
watch sales, which starts after Bonhams
New York and London sales, on June 9
and 10 respectively and Sotheby’s New
York Sale on June 11, might at least give
Phillips’s competitors the opportunity
to regroup and decide how to fight back.
Friday 5 June 2015 ★ FINANCIAL TIMES 9

FT SPECIAL REPORT

Jewellery
Fine jewellery follows the fashion Excite and
mix it up for
Traditional brands and
independent designers Winning entries in
pendant styles. In terms of gemstones,
turquoise was notable across the mar-
ket, as were unusual colour combina-
the new
courted the younger
customer at the
the Couture Design
Awards (clockwise
from top left):
tions.
Maria Lemos of London-based show-
room Rainbowwave, says she came
consumer
looking to develop US business for her
Couture Show, writes Tomasz Donocik
designers, who include Ileana Makri
earrings; Nikos Trade shows
Rachel Garrahan Koulis ring; Plevé and Venyx. She also met many interna-
tional buyers who she would normally
bracelet; Reho Retailers need to adapt and

T
he wares on offer at last
week’s annual Couture
Show in Las Vegas reflect
the growing importance of a
sophisticated female buyer
who is making fine jewellery part of her
everyday wardrobe.
Traditional jewellery retailers, in
common with multi-brand fashion
boutiques such as Dover Street
Market, have recognised the
potential of this customer and are
offering a trend-conscious selection.
The shift is also blurring the line
between traditional brands and fash-
ion fine designers. Pomellato and
Kwiat were among the larger compa-
nies in Las Vegas launching products
targeted at a younger consumer seeking
everyday pieces, and there was a strong
showing from fashion-centric brands
such as Delfina Delettrez and Lynn Ban,
who have previously only shown at
Paris Fashion Week.”
“For the luxury consumer, jewellery is
now a big part of their purchase,” says
Gannon Brousseau, director of North
America’s leading fine jewellery design
trade show.
Lane Crawford, the luxury depart-
ment store in Hong Kong, is shifting its
focus from a traditional jewellery selec-
tion to designer fashion fine jewellery
that better reflects the needs of its lux-
ury customer. The shop’s jewellery sec-
tion is moving closer to ready-to-wear
and will become a more integrated part
of the buying experience.
Pamela Love is one of the designers
necklace; Spinelli
Kilcollin ring
that will be part of its new selec- independent jewellery retailers
tion. The New York-based across the US that are adapting
designer, who originally devel- their product range. “These are
oped a successful sterling silver often family businesses and the sec-
collection, was at Couture for the ond generation is recognising the
first time, to raise the profile of need to cater towards a more fash-
her year-old fine jewellery line. ion-forward customer,” she explains.
The collection is already availa- Some of the winning entries in the
ble at stores including Barneys in show’s Design Awards reflect this aes-
the US and Colette in Paris. thetic, including Nikos Koulis’s alterna-
Ms Love came seeking part- tive engagement ring and Tomasz Dono-
ners among specialist US jewel- cik’s Blade Runner-inspired earrings,
lery stores as well as buyers from both of which are a modern reinterpre-
the UK, Japan and the Middle tation of art deco. Both designers are
East. She says response was stocked at Bergdorf Goodman.
strong and hopes to secure six to Variations on the earring and the
eight new accounts as a result. pearl remained popular at Couture and
She is one of the designers seeing there was considerable focus on the
a trend among the hundreds of neck, from chokers to lariats and long
see in Paris at Fashion Week.
Nadine McCarthy-Kahane of Stone
and Strand, a fine jewellery etailer
based in New York, came to Las Vegas
with a targeted approach. “Experience
tells us that our designers need to have a
strong story online that will immedi-
ately resonate with the buyer,” she says.
The challenge facing the industry, she
adds, is how to meet consumer demand
for new product alongside the con-
straints of a handmade, luxury product
like jewellery.
“Today’s customer constantly
wants something new. There is no
immediate solution, but the retailers
are going to have figure it out.”
With the slowdown in the formerly
booming Russian and Chinese markets,
many international brands are looking
to the US, with its large, diverse and
sophisticated jewellery market, to fill
the gap.
Fabergé brought its playful interpre-
tation of fine jewellery to Couture for
the first time, seeking US partners as
part of its global expansion.
Many independent designers were at
Couture, in search of opportunities.
Dutch designer Bibi Van Der Velden has
focused on developing her business in
the US for the last couple of years.
Already available at a number of Ameri-
can stores including Bergdorf Goodman
and Reinhold in Puerto Rico, she contin-
ues to find opportunities for selling her
luxe but playful collection.
“The US market is like a Pandora’s
box,” she says.
innovate if they are to
appeal to changing tastes,
says Rachel Garrahan
JCK, the largest of the Las Vegas jewel-
lery week trade shows, is well aware of
the need for retailers to focus on chang-
ing consumer buying habits, says Yancy
Weinrich, senior vice-president of its
organiser JCK Events.
She believes that some traditional US
jewellery stores have been slow to adapt
their product selection and marketing
strategy to the emerging female self-
purchaser.
“You need excitement in stores,” says
Ms Weinrich, pointing to Roberson’s
Fine Jewelry in Little Rock, Arkansas,
which targets female customers with its
selection of merchandise and regular in-
store events.
She adds that stores need to buy
across different price points and catego-
ries: “Once there was a real separation
between fashion and fine jewellery, but
the modern woman is now mixing it up,
wearing a $15,000 watch with a $125
bracelet.”
JCK has restructured its floor plan to
try to accommodate this shift and next
year will add a further section, The
Bridge, focused on base metal, lower-
price-point jewellery.
Technology is another area in which
Ms Weinrich believes it is crucial to
develop expertise. Stores need to
On display: the JCK trade show
develop their ecommerce offering, she
says, and must get to grips with smart
jewellery and watches after the buzz
around the launch of the Apple Watch.
With the jewellery market reporting a
slow start to the year, Andrea Hanson of
Luxe Intelligence, a sales showroom
that represents 20 designers at JCK,
agrees. “Without merchandise innova-
tion in stores, the consumer is even
more likely to abandon the jewellery
category in search of a travel experience
or technology,” she says.
Hartmut Kraft, head of the North
American division of Kering watches,
believes that an authentic brand experi-
ence is the only way to drive growth in
the US’s saturated men’s high-end
mechanical watch market.
Kering’s luxury watch brands, Ulysse
Nardin, JeanRichard, and Girard-
Perregaux, were among the exhibitors
at JCK’s Swiss Watch show and Mr Kraft
says technical innovation and expensive
advertising campaigns are not enough
to ensure sales and brand loyalty in the
saturated US luxury market.
‘The [high-end mechanical watch]
brands that will succeed in the US are
the ones that can provide a unique expe-
rience to the buyer that cannot be
bought anywhere else,” he says.

A champion of the young, the

innovative and the independent
Profile
Gannon Brousseau, director
of Couture, has opened the
show to non-traditional
retailers, says Elisa Anniss
Gannon Brousseau, the 35-year-old
director of the Couture show, which
held its 20th event in Las Vegas last
week, chooses his words carefully when
describing the event.
Couture is not a trade show he says, it
is more “a community” a word he uses
frequently to describe the buyers and
vendors who attend this upmarket,
carefully edited jewellery event.
Previously, he adds, jewellery brands
targeted Russia and mainland China,
but there had been a shift in the mindset
of these brands.
“With the US economy rebounding,
the currency fluctuations in Europe and
instability in Russia, brands are refocus-
ing their efforts on the US market. We
are certainly seeing this with vendors
[at Couture],” he says.
As for the retailer side of the show, he
adds, Couture’s strategy is to target
regions around the world — Japan and
South America — as well as specific
stores. He pays close attention to Cou-
ture’s designers and vendors when
deciding which retailers to approach.
Harrods, EC1, Dover Street Market
and Fenwick already attend from the
UK, although the appeal is even greater
for exhibiting UK-based showrooms
such as Valery Demure, Rainbowwave
and Rock Vault designers.
“The US is a different market from
other regions in the world. It is very
large and primarily composed of inde-
pendent retailers. There’s scope and
there’s scale because of its size,” he adds.
Mr Brousseau joined Couture in April
2012. Before that he was the sales direc-
tor for Emerald Exposition’s entire jew-
ellery portfolio at its trade shows ASD
MarketWeek, JA New York and also
Couture.
From 2006 to 2010 he cut his teeth at
ASD, which he describes as “the polar
opposite to Couture, selling everything
from military surplus to unbranded sil-
ver”.
Mr Brousseau has a clear understand-
ing of exactly where Couture sits in a
shifting jewellery universe. He has
encouraged younger, innovative design-
ers and new retailers to attend the show.
Meeling Wong, president North
America/managing director jewellery
at Georg Jensen, says it was refreshing
that Mr Brousseau did not come from
the industry.
“ He makes it known that he is open to
listen and open to receive — which was
much needed when he first took over.”
She believes that from an exhibitor’s
point of view, it had been a good idea of
Mr Brousseau to open the show to non-
traditional retailers, especially because
the retail landscape had considerably
changed.
“He has also made great efforts to
seek and welcome new designers and
new retailers and has successfully
‘The US is a different
market . . . there is scope
and scale due to its size’
assembled an impressive portfolio of
jewellery designers, established and
emerging,” she says.
Creativity is at the heart of Couture’s
Design Atelier, which was established
before he arrived. Mr Brousseau and his
Innovative take: Gannon Brousseau
team, together with members of the
Couture community, vet applicants who
join the show via Design Atelier. They
look for “an original voice and a unique
point of view”.
Mr Brousseau describes the work of
these independent designers as
“designer fine jewellery” — because, he
says, “it is designed by artists”.
He adds: “With designer fine jewel-
lery the industry has not done a good job
of educating the consumer about the
artist and the processes behind the
brands.”
Mr Brousseau admires the way that
the fashion industry has turned its fin-
est creators into stars. Tom Ford and
Giorgio Armani have become instantly
recognisable faces and Mr Brousseau
sees no reason why a jewellery designer,
such as Stephen Webster, should not
enjoy the same kind of recognition.
“I think it’s important to promote
these artists and learn from the fashion
industry,” he says. He points to the
Council of Fashion Designers of Amer-
ica as an organisation he would like to
strengthen ties with, given that jewel-
lery does not have an equivalent unify-
ing voice.
With an increased emphasis on design
and more women buying jewellery for
themselves, Mr Brousseau believes that
today’s consumers want to know more
about the designers, their inspiration
and the behind-the-scenes processes.
The success of Couture’s official Insta-
gram account @by_couture, launched
18 months ago, confirms that this appe-
tite both exists and is growing he says.
“We use Instagram as a vehicle to
spread the word about designer fine
jewellery and luxury timepieces. We
feature a different designer each day,
and each month we have a different
community member take the control of
our account in our #Couturetakeover
series . . . and post images on our
behalf.”
Mr Brousseau’s innovative take on
Couture has won widespread support
from exhibitors.
“Gannon listens to and engages with
the exhibitors. He is aware that the
industry is changing, bringing with it a
new type of jewellery buyer and retailer
who are key to the survival of an indus-
try show,” says Stephen Webster, who
has exhibited at Couture for 16 years.
“Since Gannon took over the reins,
my team consider it more than just a
show we take part in once a year, it’s a
community we enjoy belonging to.”
10 ★ FINANCIAL TIMES Friday 5 June 2015

Watches & Jewellery

A guaranteed diamond is forever The sparkle, the radiance and the

cal development centre in Maidenhead,
De Beers To reassure before returning to lead the new facility.
its customers, the The team has also been shown how to
use De Beers’ proprietary inscription
company has invested technology. On each Forevermark dia-
mond, a serial number is inscribed on
$10m in a grading the stone’s table facet.
facility in India, writes The number — approximately
1/5,000th the depth of a human hair —
Simoney Kyriakou is so small it cannot be seen, even with
an eyepiece. It can only be seen with a
appeal . . . of a synthetic stone
Mark of approval: the unique
serial number on a Forevermark Lab-grown or synthetic China, India, Israel and
diamond can only be seen with
a De Beers viewer
diamonds are having an
impact on the natural
Belgium. In 2012, 600
undisclosed synthetic
diamond industry. diamonds were found in a
While imitation
diamonds in the form of
parcel of 1,000 stones at
Antwerp’s International
cubic zirconia have existed Gemological Institute. Both
for decades, technological
advances are increasing
the dealer and the supplier
had believed the stones
the number of high-end, were natural. The lab-

I
f a jeweller could put a price on
peace of mind, it might not be far
off $10m. At least, that is how much
De Beers has invested in its latest
International Institute of Diamond
Grading and Inscription, in Surat, India.
The institute will process, select and
grade Forevermark diamonds — a dia-
mond brand from the De Beers group.
These will then be inscribed with a
unique serial number, which Stephen
Lussier, chief executive of Forevermark,
says is De Beers’ guarantee that each
Forevermark diamond is “beautiful,
rare and responsibly sourced”.
Of all diamonds mined globally only 1
per cent are selected for Forevermark.
Currently, De Beers’ Antwerp base
handles 400,000 diamonds a year; the
Surat facility, with its 100 newly trained
staff, is expected to process 500,000,
with the ability to take handling across
both centres to 1m a year. At full capac-
ity, Surat will be able to process $500m
worth of Forevermark diamonds a year.
Mr Lussier says that establishing the
institute in India made sense geographi-
cally. Surat is the world’s largest cutting
and polishing centre for diamonds,
dealing with nine out of every 10 stones
mined globally.
To meet growing demand for its For-
evermark diamonds — in 2014, the
brand passed its 1m diamond milestone
— De Beers has invested in intellectual
property, training and technology. For
example last month it took a 33.4 per
cent equity stake in Synova, the Swiss
laser micro-jet tech developer. The deal
will allow Synova to develop a laser to
cut and shape diamonds.
But before diamonds can be shaped,
they must be selected. To do that a
team of experts from Surat has been
trained in Forevermark selection and
grading at the De Beers UK technologi-
De Beers viewer, which bounces light off lab-grown gems. It is now grown diamonds included
the table facet’s surface. harder than ever to tell the impurities to resemble the
De Beers is now rolling out its difference between a imperfections typically
viewers to a select few of its natural diamond and one found in natural diamonds.
16,000 retail partners in 24 grown in a laboratory. In February, the Surat
countries. Synthetic diamonds Diamond Association
“Not every retailer trade at between 20 and discovered 110 synthetic
has the right envi- 50 per cent less than the diamonds in a packet
ronment for a price of natural diamonds. belonging to two traders.
viewer,” says Mr But when not disclosed as The natural diamond
Lussier. Those lab-grown, they threaten industry also faces
who do, how- to undermine the challenges from changing
ever, could pay reputation of the natural tastes. The 2014 De Beers
between $10,000 diamond industry, which Diamond Insight Report
and $30,000 a year relies heavily on trust and said that while the industry
for the equipment, has faced questions about derives practically all its
marketing and training reputation, associated with value from consumer
in how to use the machine. “conflict” diamonds. demand for diamond
Mr Lussier says that staff in Surat As a result, industry jewellery, natural diamonds
have competitions to see how quickly leaders have agreed on a are facing competition
trainees can find the inscription: 12 sec- need to stimulate demand from other luxury goods.
onds is the current record. for natural diamonds and Bruce Cleaver, De Beers’
Grading, certifying and marking dia- inscription cannot be removed without at the same time ensure head of strategy, says: “We
monds for assurance is not a new idea. altering the quality of the stone. There consumer confidence. need to understand
The Gemological Institute of America are also aesthetics to consider. Mr Luss- ‘The marking is only visible In March, miners changing consumer
has been carrying out laser inscriptions ier says that some engravings on the side including De Beers, Alrosa, preferences and the
and certification for years. could lead to visible inclusions and
at 10 times magnification’ Petra Diamonds, Gem competition from other
“This inscription can provide proof of reflections, or affect the way in which Diamonds, Dominion luxury categories to ensure
ownership,” says Thomas Moses, execu- the jeweller can set the stone. and provenance,” says Mr Rachminov. Diamond and Rio Tinto we keep the diamond
tive vice-president and chief laboratory However, diamond specialist Eden He is doubtful whether other dia- met in London to discuss dream alive.”
and research officer for GIA. “The Rachminov, founder of the Israel-based mond dealers would want to create marketing and the threat In 2012, the World
marking is only visible at 10 Fancy Color Research Foundation, something similar. “This is more about of undisclosed lab-grown Federation of Diamond
times magnification and is says that while an incised serial branding than adding value to the end- diamonds. They have said Bourses founded the World
located in the girdle of the number could, at certain angles, buyer,” he adds. little about their plans. Diamond Mark Foundation
diamond,” he says. reflect like an inclusion inside According to a spokesman for the Stephen Lussier, chief to stimulate demand for
However, Mr Lussier a fancy coloured stone, it World Diamond Bourse platform in executive of Forevermark natural diamonds. Member
believes that inscribing would be unlikely that the Antwerp, customers are becoming at De Beers, says: retailers pay an annual fee
in this fashion does not aesthetics of a pure white increasingly precious about their jewels “Targeted investment is to be a World Diamond
provide the same level diamond would be compro- and want reassurance that when they required to ensure Mark authorised diamond
of security. A diamond mised. send their diamonds to be cleaned the diamonds maintain an dealer. There are currently
could be stolen and cut “Most high-quality stones same stone is returned. appropriate share of 150 authorised dealers and
up, with the inscription are unique and carry a The spokesman added: “Customers advertising voice, because the organisation aims to
erased, he explains. certification from the GIA, so needing greater levels of confidence and this will help maintain their have 20,000 retailers on its
An engraving on the girdle the buyer should not need a spe- trust may value this sort of inscription unique luxury positioning books by 2020.
could be shaved off, he adds, cial machine to give them cer- technique to prove that they have their and underpin demand.” Ernie Blom, president of
however, a nearly invisible tainty over the stone’s authenticity own diamond in their hand.” He adds: “We are the World Federation of
committed to developing Diamond Bourses and
our own promotional vice-chairman of the
initiatives, but we believe foundation, says that the
serious proposals including World Diamond Mark

A sixth sense for the unique and the exceptional
come, and ultimately find things,” says
Shops and Retail vice-president Dickon Bowden, who
works alongside concessions and jewel-
London’s Dover Street lery manager Mimi Hoppen and a wider
Market has developed a team in finding and meeting jewellers
reputation for identifying and selecting stock.
The jewellery department started in
and nurturing fresh talent, 2006 with a collection of eight pearl
writes Hettie Judah necklaces by Rei Kawakubo, creative
director of Comme des Garçons and co-
founder (with husband Adrian Joffe) of
Dover Street Market (DSM)( has long DSM.
interwoven art and commerce. “We created some displays and the
At the London multi-level retail store necklaces sold almost immediately,”
recently, queues snaked down the street says Mr Bowden, who has been with the
before opening time — one for a limited store since it opened in 2004. “It hap-
edition pair of sneaker shoes, the other pened organically: we saw that it
for the Apple Watch. Visitors were worked, so we opened our eyes to see
greeted in the dedicated front-of-house what was out there.”
taxidermy display by a macabre set of The jewellery department has grown
eels suspended in specimen jars. steadily. Currently, it occupies about a
Beyond, presented in table-mounted quarter of DSM’s ground-floor retail
vitrines and wall cabinets, is the jewel- space and is likely to expand with the
lery, the work of some 40 designers store’s move from Dover Street to Hay-
from around the world. market at the end of 2015. Some 50
There is no plush velvet, no hierarchy pieces — less than 10 per cent of the
of value or prime position, no visible stock — are available online.
branding of any kind. Instead, the In Mr Bowden and Ms Hoppen’s gen-
pieces are arranged on Perspex blocks in tle terms, the store’s jewellery-buying
a clean grid pattern, within which the strategy sounds unstructured, but in
arrangement is changed weekly. less than a decade DSM London and its
“People are challenged when they sibling stores in Ginza and New York
have acquired an exceptional reputa-
tion for spotting and supporting fresh
talent in the sector. Repossi — carried by
DSM since 2007, when creative director
Gaia Repossi was 21 — now has some 55
listed points of sale. Both Delfina Delett-
rez and Jessica McCormack have
opened standalone stores in London’s
Mount Street quarter since being picked
up in 2007 and 2009 respectively.
DSM is celebrated for its artist-led dis-
plays and close relationship with
designers and something akin to a sense
of family underpins the DSM ethos.
When William Welstead comes in to
show new pieces he casually pours a bag
of loose diamond Nizam beads on to the
scorched wooden tabletop of the store’s
Rose Bakery.
Structured around historic gem-
stones, Mr Welstead’s jewellery is
among the store’s most traditional. Its
fiercer shop-mates include the bristling
Byzantine fantasia of Hunrod, and
Betony Vernon’s fetish accessories, as
well as lyrical designs such as Sophie
Bille Brahe’s innovative ear jewels.
There is nothing here approaching a
house style or aesthetic through-line,
more the unspoken principle that the
pieces cannot be found elsewhere.
Thirty per cent of the stock are one-off
participation and
contributions from across
the diamond value chain
Foundation has awakened
the diamond industry to
the necessity of generic
are worthy of discussion.” promotion.
works; even when designers have their Lab-grown diamonds are But some believe the
own store nearby, the DSM pieces will be cultivated from a carbon growth of lab-grown
different. “The sole criterion is that the plate known as a seed, diamonds will prompt
design has something to say. People which is placed in a low- demand for investment
come here to find something excep- pressure microwave stones. Ehud Laniado,
tional,” says Mr Bowden. chamber. Hydrogen and principal of Mercury
Mr Bowden first saw Ms Delettrez’s methane gases are then Diamond, says: “Lab-grown
work at her Paris showroom, Mr Wel- introduced and a diamonds appeal to the
stead was introduced by a client. microwave generator lower and middle classes
Etienne Perret was discovered at the pumps energy into the and young consumers who
Couture Show in Las Vegas and Lia di chamber, igniting a view them as a high-tech,
Gregoria approached the store directly. glowing plasma ball. green product.
The routes into DSM are as varied as Carbon molecules rain on “Provided lab-grown
the display grids are uniform. But for all the seed, layering on top of diamonds remain
the creator-centric buying philosophy, it and fast-tracking the accurately presented to
the process of selecting precisely which natural crystallisation the market as such, natural
individual pieces will go into the store is process. The process takes diamonds will always be in
rigorous. DSM’s relationship with jewel- six to 10 weeks. demand by the world’s
lers may be long, but it can also be nar- Undisclosed lab-grown wealthiest and most
row, with the in-store presence as lim- diamonds have surfaced in discerning customers.”
A sense of ited as three or five works. certification laboratories in Claire Adler
family The team’s sixth sense for selecting,
commissioning or collaborating on
underpins l’objet juste has made the department an
the DSM obligatory port of call even for repre-
sentatives of leading jewellery houses.
ethos. There It is founded on a search for equilib-
is a lack of rium rather than mere commercial
appeal. As Mr Bowden confesses:
barriers and “There are some things that sell once in
bureaucracy a blue moon, but they are important in Home-grown: a synthetic diamond — Bloomberg
terms of the aesthetic mix.”

Retailers seem happy to let designers take the financial strain

Retail practices
Independent jewellers are
being crippled by stores’
consignment deals,
writes Elisa Anniss
For Valery Demure, the jewellery entre-
preneur, consignment is a big subject.
“Sustainability and sweatshops are
talked about with passion, but nobody
dares to talk about how jewellery
designers struggle with today’s retailer
demands,” says London-based Ms
Demure.
Her agency represents leading names
in designer fine jewellery, including
Fernando Jorge, Delfina Delettrez and
Monique Péan.
In recent years, luxury e-tailers,
department stores and multi-brand
boutiques around the world
have become eager for new, fine
jewellery brands, often describing
the fresh ideas, novel techniques and
unexpected materials as a retail “sweet
spot”.
And yet some have also brought with
them crippling practices such as return
to vendor (the retailer buys the piece,
but if unsold, it is returned to the jewel-
ler and the retailer is reimbursed or
receives a credit). And consignment —
the most common practice of all.
Selling on consignment, where
the retailer pays the wholesale
price after the sale, returning
any unsold pieces, has
become a highly contentious
matter for jewellery designers.
For unless the designer is
independently wealthy,
running an estab-
lished business
where cash flow is
no longer an issue,
or cushioned by
start-up money,
it is the inde-
Valery Demure:
‘Retailers must
share the risk’
pendent jeweller, not the retailer, who
may crumble under financial strain.
Melanie Georgacopoulos used to run a
fine fashion jewellery label. Now head
designer at Tasaki, a Japanese jeweller,
she describes how common retail prac-
tices left her disheartened. She became
irritated that most retailers did not
appreciate consignment and did
not offer anything in return,
such as media coverage.
“I now appreciate that con-
signment is and should be
part of an order, as a small
percentage, because it ena-
bles stores to stock more
pieces from a small
designer, hence more
visibility for the
designer and less
investment risk for
the store,” she says.
“But I think that if
the stores aren’t
buying, they sim-
ply don’t put that
mucheffortinto
selling.”
Sally Leonard, a jeweller-turned-
business consultant who works for the
London enterprise agency Centa, notes:
“At the moment, everyone wants to cut
costs and shops know that many design-
ers are desperate. I tell my clients they
have to make some tough decisions, to
treat stockists as marketing to help
build their profile and that selling to five
to 10 stores is more than enough to drive
sales.
“They can hold out for an order or
decide they can afford to consign. And it
is worth it, especially if it is an organised
consignment to a store that fulfils its
invoices and pays every month. But in
the end, the most profitable transaction
is to sell to the client directly.”
Gannon Brousseau, the director of
Couture, the jewellery trade show, says
consignment is a difficult situation for
the industry and a concern of his.
“Designers invest a substantial amount
of money in their collections and want
to know their retail partners are invest-
ing in them too. I wouldn’t be surprised
if there is a shift in the coming years.
Quite frankly, there has to be.
“With online becoming more impor-
tant to designers’ success, I believe [that
increasingly] they will pick their part-
ners more carefully and only work with
those who truly support and believe in
their brand.
They may choose to consign with
some, but it will be a mutually beneficial
relationship where both parties are
investing in one another’s success. Con-
ventional distribution is changing and
will continue to in the years ahead.”
For Emma Madden, of London jewel-
lers Shimell & Madden which launched
at Dover Street Market in March, con-
signment has always been the norm.
“I see it from both sides. Usually,
retailers support you by using their PR
to help you grow and then once you are
selling you are in a better position to
negotiate,” says Ms Madden.
Since it is the designers who set prices,
she knows of some who quote higher
wholesale prices when asked for sale or
return. “It [consignment] allows shops
to carry more stock and makers to
exchange stock.”
Ileana Makri, who has opened a store
in Athens, selling her own label and
pieces by other designers, believes “the
fair thing to do is to buy a portion and
ask for another portion on consign-
ment”.
For her collection, she buys the gold
and diamonds and pays for manufactur-
ing in advance. It takes 90 days at least
to recoup these costs and that is selling
wholesale. “If it’s all consignment, then
you limit yourself to the bigger names
that can afford to do it and that’s not
what I am looking for, ” she says.
Ms Demure cites Liberty in London,
Ylang 23 in Dallas and White Bird, Le
Bon Marché and Montaigne Market in
Paris as some of the retailers that buy
into jewellers’ collections.
“Consignment should not be taken for
granted, but be part of a negotiation
process, so that retailers share the risk
with designers and are rewarded with
consignment stock to elevate and com-
plete their selection,” says Ms Demure.
But Ms Leonard goes further. “In my
opinion, if a retailer knows it can sell a
piece, then there’s no justification at all
for not buying.”
Friday 5 June 2015 ★ FINANCIAL TIMES 11

Watches & Jewellery

Clockwise from top left: Erickson
Beamon butterfly necklace;
Kenneth Jay Lane bracelet; Attilio
Codognato snake bracelet and
Kenneth Jay Lane brooch.
Left: Anna Sui wears items
of her favourite
jet jewellery
Pascal Perich

A passion for jet, vintage and Elizabeth Taylor

My favourite pieces
Fashion designer Anna
Sui loves the flea market
finds and her lucky ring.
As told to Rachel Felder
think my love of jewellery was
wear a necklace pouch and it’s in the
pouch.
Most of my jewellery is vintage. When
I look at new jewellery, it doesn’t have
the same depth. I bought my first piece
of vintage jewellery in [her home town
of] Detroit when I was in high school at a
resale store. I still wear that piece.
I have about 15 pieces of jet jewellery. I
don’t like to think of it as mourning
always had to make sure I was there on a
Friday or a Monday so that I could go
there. I acquired most of my pieces from
her. At one point I was so obsessed that I
went on vacation to Whitby to see the
museum there; inside is a jet workshop
where you can see what the working
conditions were like. They were very
cramped, working at little tables with
fine tools where they would carve the
Gloria Swanson in her booth. She had so
much Miriam Haskell — I had no idea
what it was but I was just dazzled by it. I
love that the pieces are hand-assembled
and somebody thought up the shapes
and designs.
It’s different now — I don’t buy Miriam
Haskell any more. At the time I was
buying it, it was a lot of money to me,
but once people started collecting it, you
started finding it in the flea market, that
was really exciting. I loved his 1960s
pieces, and when I started doing some
styling I thought: “Oh, let’s go up to
Kenneth Jay Lane.” That’s when I met
him — they let me go through all the old
pieces. I just love them — they’re “it” to
me.
What I love about Kenneth Jay Lane is
that it’s as gorgeous as [precious]
him, that’s why I knew what it was. In
the auction I don’t think they knew
what it was, it was just “snake bracelet”.
Liz Taylor and Richard Burton were
only in Venice once for the Venice Film
Festival and he bought that for her as a
present. I remember reading about it in
a book.
I wear it — you have to slide it on your
hand. I’ve worn the snake’s head up and

I inspired by mom, because she

always had such beautiful pieces.
She gave me my good luck ring that
I’ve worn at every fashion show: it’s
a piece of [her] jewellery that I just
loved and right before I started to do
fashion shows she gave it to me.
I think that jewellery can symbolise
that: that love you have for your mom or
your mom for you and I love it when it’s
passed down. I used to wear it on my
hand, but so many people squeeze your
hand, that I would freak out. Now I put it
in my pocket in a box, or sometimes I
jewellery: I like the craftsmanship and
the intricacy of it, I love that some pieces
were hand-carved. I’m very attracted to
it — they are such beautiful objects.
Most of my jet pieces are from the
early 1990s, from an antique dealer in
Gray’s Antique Market in London called
Allison Massey. She’s the one that I
learnt about jet jewellery from — she
was very, very knowledgable. She even
had little books to buy so you could read
up on it. I would save up my money and
when I went to London that was my first
stop. It wasn’t open on the weekend so I
objects.
The jet jewellery is what inspired all
the packaging for my cosmetic line and
my first perfume bottle. It’s really based
on all these pieces — they are so
recognisable. I think that’s really what’s
made the brand such a success.
Miriam Haskell designs started me
collecting vintage jewellery. I used to
buy her pieces in the late 1970s and 80s
from a woman at a vintage [sales]
building in New York who looked like
Gloria Swanson; she would wear a
beauty mark and she had pictures of
just couldn’t touch it any more.
I bought most of my Kenneth Jay Lane
pieces at the [now defunct Chelsea] New
York Flea Market. It used to be such an
amazing flea market — every time you
went you could find something. The flea
market is totally about the hunt to me.
You never know what you’re going to
find. Sometimes it’s a bonanza and
sometimes it’s “mmmm”, but that
makes you appreciate it more.
I knew of him because some of my
favourite jewellery in old Vogues from
the 1960s were his stuff and when I
jewellery but it’s faux, so you don’t have
to worry about it so much, although I
treasure it just as much as the real thing.
Erickson Beamon has done the
jewellery for my shows since the
beginning. One of my favourite pieces is
a butterfly necklace — it’s been made for
me twice, for two different seasons in
different palettes.
I have a piece from the [2013
Christie’s] Elizabeth Taylor auction: It’s
a bracelet [by Venetian jeweller] Attilio
Codognato: I worked in Italy and
whenever I went to Venice, I used to visit
down, depending on what my sleeve is
doing.
I’m a big Elizabeth Taylor fan — seeing
her jewellery was just fascinating. When
I went to the auction it was really
exciting. The auction estimates were not
insane. There was the Bulgari diamond
[piece] and I tried that on — and I
thought: “That’s what I want”. The
estimate was, of course, not what it went
for — it went for about a million dollars
and so watching the bidding on it was
“No way”. The snake bracelet is my
consolation prize.

Berber traditions find favour

with western designers
Morocco
Corals, amber, coins and
handcrafted silver are the
hallmarks of the region,
writes Liza Foreman
Within the grounds of the Jardin
Majorelle in Marrakech lies the Musée
Berbère. Its rooms are filled with rare
silver designs — a horde of Berber jew-
els.
With a permanent collection of
1,200 jewellery pieces, the
museum owns what Björn Dahl-
ström, the curator, describes as one
of the most significant collections in
the world.
Three hundred pieces are on display,
while a selection from the museum’s
collection is part of a travelling exhibi-
tion. Currently, 80 pieces from the Ber-
ber Women of Morocco tour are at the
National Library of the Kingdom of
Morocco in Rabat.
An image for the exhibition shows
some of the pieces and demonstrates
how they should be worn. Reefs of
chunky corals hang like the spine of an
animal wrapped around the neck of the
mannequin. Other necklaces made
from unpolished stones and hand-
crafted silver adorn the look, along-
side angular plates that cover the col-
larbones and were used traditionally
to pin garments together. Finally,
there is an ornate silver headpiece
embellished with cut glass.
An ensemble like this might be paired
with larger-than-life earrings, according
to photographs in the exhibition, which
also displays some of the Berber collec-
tion which Yves Saint Laurent, the fash-
ion designer, and Pierre Bergé, his part-
ner in life and in business, started
almost 50 years ago.
The Jardin Majorelle was once the
home of the artist Jacques Majorelle,
and is now the property of the Fonda-
tion Pierre Bergé-Yves Saint Laurent.
“Ours is a small museum, so we tour
to make it more accessible,”
says Mr Dahlström.
“It started in the 1960s,
when Yves Saint Laurent,
who was born in Algeria,
began coming to Morocco.
Yves Saint Laurent and Pierre
Bergé donated their collection to
the fondation when it opened, and we
have enriched it considerably since.”
Not long after Yves Saint Laurent and
Pierre Bergé set out on their jewellery
quest, fashion designer Tory Burch’s
parents travelled to Morocco. The New
York designer drew upon this history for
her fall-winter 2015 “Marrakech meets
Chelsea” collection.
“I have always been fascinated by
Marrakech. My parents honeymooned
there 50 years ago and returned often,”
says Ms Burch. “I loved hearing stories
about their trips and found it to be a
great source of inspiration.
“Our design team was influenced by
the construction and design of vintage
pieces from the region,” she adds.
“The details we incorporated into
our mixed-metal designs — discs,
chains, fringe and semi-
precious stones — were
inspired by vintage pieces
from Morocco, a country
deeply rooted in Berber cul-
ture.”
Meanwhile, Dore Stock-
hausen, the Australian silver-
smith and jeweller, recently led
a tour through the High Atlas
and into the Sahara in Morocco.
Participants make jewellery
with the help of craftsmen en
route. Like the Berbers, Ms
Stockhausen uses certain
traditions such as
enamelling.
“I encourage par-
ticipants to look at
this rich culture, art
and landscape to inform
their designs,” she says. Fragments of
antique jewels found during the tour,
along with beads, leather and cactus silk
are combined into the designs.
Rita Lazauskas, an artist and curator
and director of Amazigh Cultural Tours
Morocco, which organises the trips,
Moroccan inspiration: Tory Burch
pendant necklace (top) and Tory
Burch triple finger ring (below)
says: “We try to use the same simple
techniques and tools employed in
Morocco, such as forming sheet silver
with simple decorative punches and
hammers.”
The tour comes as Moroccans — and
some contemporary jewellers — are
beginning to rediscover their heritage,
much of which was lost with modernisa-
tion in the 1970s, says Mr Dahlström.
Women wore traditional jewellery
designs at weddings until the 1970s and
Mr Dahlström says he has seen many
new designers using elements from the
tradition.
“While you cannot wear such heavy
pieces today, some techniques and
materials are being incorporated into
designs — such as fibulae [brooches]
being used as pendants,” he says.
“This jewellery was once produced
everywhere and worn all over Morocco.
The artisans were mainly Jewish and
many left after the creation of Israel,
and the savoir-faire has been lost.”
Berber jewellery is made in multiple
territories, but all the Jardin Majorelle
collection is from Morocco.
“Many young Moroccans and Algeri-
ans are wearing modern or smaller ver-
sions of older pieces,” says Cynthia
Becker, an associate professor of history
of art and architecture at Boston Uni-
versity and a specialist in the arts of the
Berber in northwest Africa.
“Some older-style pieces, similar to
those made until the 1960s, are still
made in Beni Yenni in Algeria and Tiznit
in Morocco — and are produced for wed-
dings. But most women prefer not to
wear the heavy silver jewellery of the
past and prefer gold,” she says.
She counts silver, cloisonné, coral,
amber and coins as the main hallmarks
of Berber jewellery. “Women wore a
basic jewellery kit in the past, including
a silver headpiece, fibulae, two or four
bracelets and a necklace,” she says.
Ms Lazauskas says the remaining Ber-
ber jewellers tend to work from home,
relying on co-operatives and traders to
sell their work. But she adds that there
are schools in Fez and Essaouira which
practise traditional techniques.
“The Amazigh [Berber]
traditions are struggling to
survive,” says Ms Lazauskas.
“If you research Moroccan
Amazigh jewellery, it will say it
all happens in Tiznit, Taroudant
and Essaouira, but we found that
there was very little left there.”
12
David Bennett: ‘Important collections, when they appear, will require us to develop a specific strategy suited to the owner’ — Charlie Bibby
‘An auction is like theatre — you
must hold people’s attention’
Interview David Bennett has presided over many record-breaking sales at Sotheby’s, says Camilla Apcar
I
n April, Sotheby’s Magnificent
Jewels sale in New York was one of
the first auctions to be held through
its new platform partnership with
eBay, the online auction site.
Of the 294 lots sold, four priced at
more than $1m were bought by online
bidders, either via eBay or Sotheby’s
online bidding platform, BidNow.
“I think we’re rapidly moving into the
new age,” says David Bennett, who was
named worldwide chairman of
Sotheby’s International Jewellery
division in March. “I think jewellery is
going to become more and more
important for the auction business and
also for our digital world.”
For the moment, only New York sales
will be offered on eBay, but the auction
house is hopeful that selected sales in
Europe and Asia will follow.
Sotheby’s jewellery division is
growing. Its worldwide turnover
climbed from $190m in 2009 to
$602.5m last year, its record high. The
division is now the auction house’s third
largest department, accounting for
some 10 per cent of annual turnover.
“Jewellery is something that,
generally, everyone possesses; it has a
far more diversified ownership than art,
for example,” says Mr Bennett.
“Because of that, it offers a natural
first-entry point into our overall
business. Its universal appeal is clear
from the high traffic we see to the
jewellery pages of our website and the
phenomenal enthusiasm there is for
jewellery on social media.”
An authority in the field of gemstones
and jewellery, Mr Bennett is known as
the 100-carat man, having sold seven,
Exhibition reveals China and Cartier’s shared influences
Sichuan Museum
The Making of Art show was
two years in the making and
pairs antique pieces from the
jeweller with eastern works
of art, reports Ming Liu
Shortly before Chinese new year in Feb-
ruary, Cartier opened its first stand-
alone boutique in China — in Chengdu,
the capital of Sichuan Province.
The opening marked the jeweller and
watchmaker’s 36th outlet in China, but
the three-storey, 1,000 sq m space — in
the heart of a metropolis that is home to
some 25,000 millionaires — was only
one of several spring celebrations.
In April, the Sichuan Museum
unveiled The Making of Art exhibition,
a showcase of more than 300 historic
Cartier creations, paired alongside 87
works from the Sichuan Museum, the
largest public museum in southwest
China.
The Cartier pieces hail from the mai-
son’s globetrotting Cartier Collection, a
1,500-strong assemblage of one-off
works that Cartier has been acquiring
since 1983. Museums around the world
100-carat exceptional diamonds. He
has led many record-breaking auctions,
including the ‘Graff Pink’ a rare 24.78
carat ‘fancy intense pink’ diamond that
was sold for $46.2m, in November 2010,
at that time the highest price ever paid
for a gemstone or jewel.
He presided over the sales of the
collections of opera singer Maria Callas
and film star Ava Gardner and was
instrumental in the sale of the collection
of another film star, Gina Lollobrigida.
Last month, he put together and
presided over a record-breaking sale in
Geneva that realised $160.9m, including
the 25.59ct Cartier Sunrise ruby that
sold for $30.3m.
It surpassed the previous world
record for the price for any ruby by
more than $20m, another of Mr
Bennett’s salesroom triumphs.
During a career spanning more than
35 years at Sotheby’s, Mr Bennett has
witnessed what he refers to as “the
globalisation of the auction business”
and identifies the 1987 sale of the
Duchess of Windsor’s jewels as “the real
watershed”.
“The presale exhibition in New York
attracted such unprecedented large
crowds that the queue to get into our
galleries on 72nd street was a mile long,”
he recalls. “The world’s press came; we
had exhibitions around the globe, and
satellite-connected auction rooms . . .
It injected a huge amount of vigour and
enthusiasm into the jewellery business
internationally and sparked a new
interest in jewellery as an art form.”
Deciding what goes into an auction —
and creating sales with as much variety
as possible — relies on quality and how
have since invited Cartier to showcase
these precious antiques — the British
Museum, New York’s Metropolitan
Museum of Art and Moscow’s Kremlin,
among them. The Chengdu show, two
years in the making, marks not only the
30th such show, but also the fifth to be
staged in China.
Each exhibition is independently
curated and unique. In Chengdu, 13 his-
toric creations are being shown for the
first time, including a magnificent 1934
necklace, with 27 imperial jade beads
and a calibre-cut ruby clasp, that was
owned by the Woolworth’s heiress Bar-
bara Hutton. Cartier picked up the gem
at Sotheby’s last year for $27m, setting a
record for jadeite and the house in turn.
The Cartier Collection is “about shar-
ing culture,” says Pierre Rainero,
Cartier’s image, style and heritage direc-
tor, who adds that the exhibitions bring
Cartier’s rich, 168-year history to the
largest number of audiences possible.
The exhibition, which runs until 28
July, has seven sections, with four dis-
tinct themes. The first is a historic nar-
rative of Cartier style, from Garland
designs to art deco creations and culmi-
nating in the revival of gold in the 1960s.
Works date from an 1850s yellow gold
and amethyst parure (set of matching
jewellery) to a 1980s tiger necklace.
★ FINANCIAL TIMES
Watches & Jewellery
CV A life in
the saleroom
1974 Joins Sotheby’s as a
cataloguer.
1979 Takes first auction.
1984 Assumes directorship of
London jewellery department.
1989 Moves to Geneva: appointed
director of European jewellery sales
and begins to sell record-breaking
diamonds and jewellery collections.
2006-2014 Chairman for Europe
and the Middle East. Co-authors
Celebrating Jewellery (2012).
2015 Appointed worldwide
chairman of Sotheby’s International
Jewellery Division.
attractive the pieces are, but it also
depends upon what is on offer he says.
Having good contact with clients is as
vital as good knowledge of the field, he
adds.
“You can have the possibility of
turning up the completely unexpected.
“One famous collection we sold
recently was the culmination of a
relationship built over more than 15
years, which involved visiting the
individual in a European capital on
numerous occasions.
“What began as a business
relationship ended up becoming a
friendship, in such a way that when the
decision was made to sell the collection,
Although jewellery, watches and
clocks dominate, various objects fur-
ther showcase
Cartier’s range,
such as bejew-
elled evening
bags from the jazz
age. Displays de-
voted to the lavish col-
lections of Cartier cli-
ents — including Napoleon
III’s wife, Empress Eugenie, Eliza-
beth Taylor and Gloria Swanson —
add celebrity glitz.
However, it is the exhibition’s “A Dia-
logue with the World” section where
China and Cartier’s shared design influ-
ences come to the fore.
A collection of mother-of-pearl inlaid
jewellery cases showcases Cartier’s use
of traditional Chinese techniques. Else-
where, works of Chinese art are crafted
into objects for western tastes, such as in
Cartier’s interpretations of snuff bottles,
paintbrush holders and one-of-a-kind
chinoiserie clocks. China’s decorative
motifs also spurred the creation of an
individual Cartier style, such as a 1928
carved coral and emerald Chimera ban-
gle, which pays homage to an eastern
green-and-red palette, but with Cartier
using emeralds in place of jade.
Song Haiyang, curator and jade
I was already very much involved in the
decision-making process [which pieces
to sell and which to keep].”
Mr Bennett says that the decision to
sell jewellery is rarely based purely on
financial considerations. There is
usually a strong element of emotional
involvement such as death or divorce.
“Important collections, when they
appear, will require us to develop a
specific strategy suited to the owner. I
spend a lot of time working on this.
“Clients often need to be advised on
the marketplace and timing . . . Very
often, I visit a consignor a number of
times before a final decision is taken.”
Mr Bennett has considerable input on
the content and order of a sale and
negotiates many of the top lots.
“The sale has to have a certain pace.
You need to maintain a rhythm by
attempting to orchestrate moments of
drama . . . It has a lot to do with
carefully placing lots that are likely to be
hotly contested, spacing them out and
building excitement.”
Enthusiasm, charisma and knowing
when to change the pace of the
proceedings are all vital components of
being a good auctioneer, says Mr
Bennett.
“I feel it is important to be aware that
an important auction can be like a piece
of theatre.
“People are sitting, sometimes for a
couple of hours at least, and one needs
to develop a kind of sixth sense as to how
to keep their attention and maintain
that sense of excitement.
“I consider that a very important
element in the success of a major
jewellery auction.”
Pieces from Cartier’s
collection, a butterfly
(1945) and dog (1912)
Masterclasses in
appreciating the
finer things in life
Education
Collectors are honing their
expertise and learning about
stones, writes Amie Tsang
“People haven’t seen jewellery as an art
form,” says Joanna Hardy, a Christie’s
jewellery expert. But things are chang-
ing, she adds.
While jewellery may not have reached
the high figures attained by art, prices
are rising. For example, a 35-carat Kash-
mir sapphire ring was sold for $7.3m —
($209,689 per carat) — at Christie’s
Magnificent Jewels sale in Geneva
recently.
As interest in jewellery increases, auc-
tion houses are responding and offering
a series of masterclasses.
“For anyone who is about to start buy-
ing jewellery or stones, I think the mar-
ket for diamonds is all around us,” says
Bonhams jewellery director Graeme
Thompson.
Mr Thompson is running an introduc-
tion to buying diamonds masterclass in
Admiralty, a central Hong Kong busi-
ness district. “It’s everywhere we go,
whether we’re walking down the street,
or at auction . . . we see huge adverts all
around us,” he adds.
Mr Thompson tells his masterclass
why the ubiquity of diamonds means
that buyers will turn to this “safety
blanket” when it comes to making
their first investment. He then goes on
to discuss what affects diamond prices,
as his guests sip champagne and eat
canapés.
One of the audience, Agnes Ho, has
not missed any of Bonhams’ master-
classes since they started. She is eager to
round out her knowledge of jewellery
and learn about elements that she is not
too familiar with.
“I know about diamonds, but not
other stuff like gemstones, jadeite. It
intrigues me because of the increase of
value, but I don’t believe in investing
unless you like them.
“Of course”, she adds, “you like to
know that your pieces have gone up in
price — I’ve done something right”.
Ms Ho explains that she finds learning
about jewellery relaxing after a day’s
work. “Business I know inside out,” she
says — she works in private equity. “For
something like this, I can [use] Google,
of course, but this can put it into per-
spective. It’s very stimulating.”
Although Mr Thompson is running
the diamond class, external speakers
are also brought in so that clients have
access to independent expertise too.
Bonhams intends to roll out more mas-
terclasses in mainland China.
The people who attend Christie’s mas-
terclasses, which the auction house runs
globally, often have their own jewellery
collection and want to know more about
what they have in their possession, says
Ms Hardy.
And of course, she adds, “there are
people who want to further their collec-
tion, people want to know what they’re
buying”.
The proliferation of information on
the internet has also made people more
aware of the jewellery that is available,
she says.
expert, who has curated three of the five
Cartier Collection shows in China, says:
“The ideas and craftsmanship behind
these western treasures reference and
fuse Chinese characteristics.”
The allusions are not limited to China.
Mr Song has selected Japanese, Egyptian
and Mughal-inspired designs, including
a necklace with 2,390 diamonds.
The jeweller’s famed 1928 Tutti Frutti
bracelet is also displayed. The bold
coloured, multiple-stone-set piece is
“Indian-inspired in that we mix tradi-
tional stones such as rubies and emer-
alds,” says Mr Rainero, “[but] with blue
sapphires, it is totally Cartier and not
Indian any more”.
The show’s final sections shine a light
on local culture, naturalism
and the museum’s own
works. Sichuan prov-
ince is known for its
natural beauty, a
fact Mr Song com-
plements with
Cartier’s exten-
sive use of flora
and fauna.
Many of the
designs are as
noteworthy as
the personalities
who wore them, for example a
Friday 5 June 2015
Learning curve: a class at Bonhams
“People are individual . . . and I
think they don’t want just to put on the
twinset and pearls. At one time, you put
the same jewellery on with whatever
you were wearing. That was very typical
in the 1980s and 1990s. But that’s really
changed.”
There is also greater awareness of
where the jewellery comes from. “Peo-
ple appreciate that the earth is not going
to churn out another Kashmir sapphire;
that mine is long extinct. People are
really appreciating that the world is not
a supermarket; it won’t keep bringing
out these stones,” says Ms Hardy.
She says that a significant proportion
of those attending her classes are finan-
cially independent women, who want to
spend their wealth wisely. While the age
range has dropped, with some in their
mid-30s, the average age of participants
is about 45-50.
Classes at Christie’s include behind-
the-scene visits so that customers can
see craftsmanship in action. Gemstones
are recommended as a starting point
because they are such an integral part of
jewellery.
While Ms Hardy and Mr Thompson
want attendees to feel more confident,
they are wary of encouraging clients to
go out immediately with their new-
found knowledge and a handful of
banknotes. Ms Hardy recommends in
the first instance that people do not just
buy for the sake of investment. “You’ll
never enjoy it. You should buy what you
love, but when you have a discerning
eye, you can really appreciate its
beauty.”
Mr Thompson is similarly wary — he
starts off his diamond masterclass with
a warning. “I think as a buyer or a pri-
vate individual . . . you do it for the love
of the jewel — you don’t necessarily
want to start buying jewellery with a
view to increasing the value.”
Later he explains that he wants peo-
ple to feel more comfortable in their
knowledge before buying. “You can’t
just drive in and spend a whole load of
money. I think an auction is a good place
to start familiarising yourself to under-
stand what it is you’re after. Definitely
take smaller steps, ask lots of questions,
go to a variety of places.”
Nonetheless, Ms Hardy thinks greater
understanding is beneficial all round.
She says: “They [participants] enjoy
the journey of developing an eye and the
knowledge. That’s a great asset to every-
body. Jewellery will be appreciated by a
wider audience. You see different jewels
being worn, being offered — the market
will respond to that.”
platinum and diamond rose clip brooch
created for Princess Margaret in 1938.
Cartier’s floral clocks and carved
agate animal figurines also feature and
segue into the final room of museum
works. Among the oldest pieces here are
12 gold objects from the Song Dynasty
(960-1279) — including carved buyao, or
dangling hairpins. A selection of about
20 jade pieces are also on display — dec-
orative jade pendants and belt hooks
among them — most of which date from
the Qing Dynasty (1644-1911).
There are also educational displays.
Centuries-old jewellery and decorative
art techniques — including silversmith-
ing and Shu brocade, which originated
in Sichuan — are explained.
The show’s intention is to “open a win-
dow for understanding how the art of
jewellery-making developed,” says Xie
Zhicheng, the museum’s vice-director.
The show looks at “China — and indeed
the eastern world’s — influence on glo-
bal design, trends and innovation”.
The museum expects more than
200,000 visitors to the exhibition.
“They’re always a blockbuster,” says
Cartier’s chief executive Stanislas de
Quercize.
“There are always queues [in China]
— people are fascinated . . . It’s opening
the gates to incredible treasures.”
Friday 5 June 2015 ★ FINANCIAL TIMES 13

Watches & Jewellery

‘It is a new retail category — accessible’ Story of a piece

The Empress
Interview David Chu “The price is accessible — we’ve Eugénie pearls
created a new retail category.”
of Georg Jensen has The jewellery proposition has been In 1854, a year
cut from 570 models to about 300. A
refocused the business collaboration with jewellery designer
after she
married
and hopes to win a Jordan Askill, based on a repetitive Napoléon III,
silver butterfly motif will launch in Eugénie de
younger audience, says September 2015. Montijo struck
Jessica Diamond “It’s in our DNA to collaborate with a magnificent

D
avid Chu, chief executive
and chief creative officer of
Danish brand Georg Jensen
used to live three blocks
from the Madison Avenue
Georg Jensen store in Manhattan.
“I would walk past it every day and
occasionally go in,” he says. “Sometimes
I’d see beautiful product, but I’d never
see any changes. It was presented like a
museum.”
Two years ago, Mr Chu was given the
chance to take control of the brand.
The chief executive of Investcorp, the
private equity firm, and a longstanding
friend, called Mr Chu, knowing that his
record as founder of US sportswear
company Nautica and as creative
director of Tumi luggage had both
proved commercially successful.
He wanted to discuss buying Georg
Jensen and invited Mr Chu to visit the
brand’s headquarters in Copenhagen.
Mr Chu was impressed and shortly
afterwards, in November 2012,
Investcorp’s bid of $150m was
successful.
Since his appointment in early 2013
Mr Chu has refocused all areas of the
business. “I stepped back for about six
months observing everything from
product lines to senior management to
retail spaces,” says Mr Chu.
“The Danish management was good,
but had failed to take it to a global
position, so I started hiring the best
international talent.” He appointed a
dedicated director to each product
category — jewellery, watches, silver,
men’s accessories — and divided the
business into three territories — North
America, Europe and Asia.
This year saw Georg Jensen return to
Baselworld following a five-year hiatus.
At first glance, the product presented
did not look very different from
previous offerings, with minor
David Chu adjustments made to the cases of the
intends to invest iconic Koppel and Vivianna watches
heavily in retail launched by the brand in 1977 and 1969
space respectively. Instead, Mr Chu
concentrated on the inner workings of
the timepieces.
“We started planning a year ago to
develop our watch offering, by
incorporating ETA and Soprod
movements,” says Mr Chu. “It’s
important that our watches are Swiss
made with Swiss movements.”
The independent movement maker
Dubois-Dépraz is also used in the new
semi-complications within the Koppel
range. Mr Chu’s plan is to focus on
design, while maintaining tthe quality
and precision needed to position Jensen
watches among credible competitors.
Historically silver jewellery has been
the mainstay of the Georg Jensen
business since it was founded in 1904.
Consequently the largest jewellery
offering retailed for less than £1,000.
Mr Chu decided to move the price point
to more than £1,000 by introducing
more gold and precious stones. Results
are already visible with gold jewellery
sales now representing more than 50
per cent of all jewellery sales, with an
average retail price of $1,500.
A new collaboration, with ethical
mining company Gemfields, also
ensures a reliable and constant supply
of emeralds and rubies, incorporated
into pieces that were shown at Basel,
including Runa, a high-end jewellery
collection with large cabochon emerald
beads that retails from $232,500.
Mr Chu believes the market for this
price point is scattered globally. “We see
purchasers in London, Tokyo, Taiwan
and Sydney . . . And interestingly, those
who buy a $150,000 piece of silver
hollow-ware from us, are also buying
high-end jewellery.
other designers,” adds Mr Chu. Marc
Newson has designed a Georg Jensen
limited edition silver tea set that is due
to launch in October 2015 and further
design projects, with several high-
profile names, are in the early stages of
development.
In the next three years, Mr Chu
intends to invest heavily in retail space,
with plans for a dozen stores this year.
Recent openings in Oslo and Munich
and the refurbishment of the
Copenhagen store will be followed by
the relocation of the London flagship
from Bond Street (where it has been for
80 years) to the more niche environs of
nearby Mount Street.
Mr Chu is unfazed by the potential
drop in footfall, believing the new area
offers a more suitable clientele.
“Jensen isn’t a luxury brand in the
same way as Graff or Louis Vuitton.
We’re more about design and I think this
move will attract a younger, cooler
audience.” Additional London outlets in
the Royal Exchange and retail village
Westfield have also opened in 2015.
Mr Chu is also planning a lifestyle and
retail concept in Beijing at the end of
September 2015. A thousand square
metres of space within a traditional
hutong (narrow street) will be
renovated to provide retail space to
include watches, jewellery, men’s
accessories, silverware and a café.
Called the House of Jensen, Mr Chu
hopes to roll it out across Asia, knowing
‘I stepped that this new territory for the brand is
back . . . central to its success.
He is cautious but optimistic about
observing the future. “When we bought the
everything company, we took all the debt out —
we’re debt-free, and we’ll inject more
from money this year and next. I want
product double-digit growth every year — about
10-20 per cent. Sometimes, it does feel
lines to retail like a 110-year-old start-up, but most
spaces’ importantly, the team is really fired
up . . . and we’re all on the right track.”
profile on
canvas.
Dressed in
a vivid yellow gown, the last
empress of France had chosen a
particular pair of earrings from her
extensive collection to wear for
Franz Xaver Winterhalter’s oil
portrait: two natural grey pearls,
each suspended from a 3.01ct old
mine brilliant cut diamond and
mounted in silver and yellow gold.
The painting was unveiled at the
1855 Exposition Universelle on the
Champs-Elysées and is currently on
display at the Metropolitan
Museum of Art in New York.
Now the earrings will be offered
for sale by New York jewellery
house Siegelson at Masterpiece
Fair in London, (June 25 - July 1),
with an ‘asking price’ of about
$10m.
Following the fall of the Second
Empire, the defeated Napoléon
abdicated. It is thought the family
relied on the sale of the jewels that
Eugénie smuggled to England
when she fled from France.
Around this time the earrings
were acquired by George Crocker,
vice-president of the Southern
Pacific Railroad, for his wife, Emma
Rutherford Crocker.
The pearls passed to the
Crockers’ daughter and were
acquired by another American
industrialist, Henry R. Benjamin. His
wife wore them on Christmas Day
1925 and their daughter, Anne
Rogers Benjamin, selected them for
her 1941 “debut” in New York. She
married Robert Raymond Barry, a
Republican member of the House
of Representatives. Their daughter
was the last owner of the pearls
before they came to Siegelson.
Camilla Apcar

Heirs to a dynasty recount a

passion for Rome and gems
Books
The Bulgari brothers have
produced a history of the
city and jewels that inspired
them, says Giulia Segreti
“There is great pride in the past and [in]
what has been done by past genera-
tions,” says Nicola Bulgari, the vice-
chairman of Bulgari, the jewellery
maker, referring to his father Giorgio,
his uncle Costantino and his grandfa-
ther Sotirios.
And it is that shared past that Nicola
and his brother Paolo, chairman, together
with author Vincent Meylan, reveal in
their book Roma, Passion, Jewels.
For the first time, the Bulgari heirs
unveil the human side of the luxury
empire, founded in 1884. They recall the
many milestones in the company’s rise
to success, both in Italy and abroad.
Initially conceived as a simple collec-
tion of mementos, promoted by Bul-
gari’s heritage section, to be given to the
maison’s best clients, the project
expanded and became a book, celebrat-
ing tthe brand’s opulent history.
“[The book] has provided me with a
unique opportunity to talk about pre-
cious stones as I see them and to retrace
the story of the company through them,
the extraordinary people who have fea-
tured in my family’s life and the thou-
sand sources of inspiration for our jew-
els,” says Paolo.
The book is in the form of two inter-
views: with Paolo on Via Condotti in
Rome and Nicola on Fifth Avenue in
New York.
The Bulgari jewellery empire was
started by Sotirios, a Greek immigrant
silversmith, who left his country for
Italy. He opened his first shop in Naples,
but was soon burgled and left the city for
Rome, where he arrived penniless. After
saving money by selling silver from a
friend’s street trolley, he leased a small
shop on Via Sistina. As success grew, he
opened many other boutiques, includ-
ing the one on Via Condotti.
After visiting Paris in 1908, Sotirios’
son Giorgio, inspired by the classical
Parisian school of jewellery and with the
support of his brother Constantino,
bravely moved into fine jewellery.
Sotirios died in 1932, leaving the
empire in the hands of his two ambi-
tious sons. Giorgio’s numerous trips to
Memory lane: Nicola (left) and Paolo Bulgari reveal the story of the brand
Paris in the 1950s helped Bulgari’s signa-
ture grand jewellery, set with flamboy-
ant coloured gems, win appreciation,
first in western Europe and then in the
US, Russia and Asia.
Rome is the setting for most of the
brothers’ vivid memories. The city is the
heart and inspiration for both the family
and the business and is where the com-
pany began.
“Rome is about an emotional factor,
aesthetics, affection . . . so many things.
Everything was born here,” says Nicola.
In the book, the city is the elegant
backdrop to parties, meetings, jet-set
occasions, family gatherings, work and
the second world war. During the war,
their uncle Costantino and his wife hid
persecuted Jews in their flat and their
parents welcomed Greek prisoners flee-
ing from concentration camps.
R
Roma Passion
J
Jewels
b Vincent Meylan
by
Electra, €40
E added value [to the brand] and a
144 pages
Published 2015
P Bulgari was bought by Bernard
The brothers recall tthe days of the so-
called Dolce Vita of the 1960s, when
Rome attracted many foreigners,
mainly wealthy Americans, and gained
international visibility as it became the
setting for many Hollywood movies.
Bulgari thrived in parallel, with mag-
nates, heiresses, nobility and Holly-
wood celebrities buying its jewellery.
But more specifically, the legendary
boutique in Via Condotti became the
place where many went — even just to
be seen. “It was a curious gem, that had
to be visited”, explains Nicola.
The brothers’ stories often describe
friendships: with arts patron Count Vit-
torio Cini; socialite Dorothy di Frasso;
director and screenwriter Luchino Vis-
conti; and conductor and pianist Sir
Antonio Pappano — and many beautiful
women, including Italian actresses
Sophia Loren and Anna Magnani.
But it is Elizabeth Taylor who is most
associated with Bulgari. “She used to
meet discreetly with Richard Burton in
the small salon [in the Via Condotti bou-
tique] which has a private entrance.
Very often he would buy her a present:
emeralds, diamonds,” says Paolo.
However, although celebrities enliven
the tales of the Bulgari brothers, it is the
family that is the book’s true protago-
nist. “Family is important; it gives an
stronger meaning,” says Nicola.
Arnault’s LVMH in 2011 for $5.2bn. In
2013 Italy’s finance police seized assets
worth €46m belonging to Bulgari in an
investigation over alleged tax evasion.
The family denies any wrongdoing and a
trial is due to start in October.
The Bulgari brothers are still involved
in the business following the sale of
their controlling stake to LVMH. Paolo
designs high jewellery while Nicola
advises on heritage and patronage.
14 ★ FINANCIAL TIMES Friday 5 June 2015