MONDAY 1 FEBRUARY 2016 WORLD BUSINESS NEWSPAPER EUROPE

Great balls of dire Outfoxed Big screen to iPad

Why global summits generate How does Murdoch’s network Lord Puttnam applies film craft to
more guff — LUCY KELLAWAY, PAGE 12 fix a problem like Trump? — PAGE 7 online leadership lessons — PAGE 11

Joke no longer Briefing

on Trump and i JPMorgan eyes blockchain cost benefits
The US bank is collaborating in a trial with a start-
Sanders up in exploring applications for blockchain
technology, as it seeks to lead industry efforts to cut
the cost and hassle of trading.— PAGE 15
New York property magnate Donald
Trump and Vermont senator Bernie i Macedonia battles with migrant flows
Sanders were dismissed as jokes when Europe’s fourth poorest country has been struggling
they launched their US presidential with a daily inflow of refugees that has rarely fallen
campaigns last year. But the final polls below 2,000, with an appeal made to Europe for
ahead of the Iowa caucuses, which fire financial aid.— PAGE 2; WOLFGANG MÜNCHAU, PAGE 9
the starting gun on voting for the 15
White House contenders in the 2016 i Majors set to reveal earnings pain
race today, show how conventional wis- The full effect of collapsing crude prices
dom has been overturned by both men. on oil majors’ results will be revealed
The latest Des Moines Register poll when BP, Royal Dutch Shell and BG
for Iowa, shows Mr Trump leading his Group report this week, with deeper
closest Republican rival Ted Cruz by cost-cutting expected.— PAGE 22
28 per cent to 23 per cent. Mr Sanders,
who trailed Hillary Clinton by several i Swiss add fuel to Malaysian 1MDB scandal
dozen points just a few months ago, has Switzerland has torpedoed efforts to contain the
closed the gap on his Democratic oppo- growing scandal over alleged large-scale corruption
nent to just 2 percentage points. at the Malaysian 1MDB investment fund, saying it
White House race page 4 found “serious indications” that about $4bn was
Big Read page 7 misappropriated.— PAGE 6
Edward Luce page 9
William Edwards/AFP/Getty
i Axa chief lays out dangers to UK of exit
The chief executive of the insurer has become one
of the first continental voices to have spoken out
over Britain’s referendum over Europe, warning

Nigeria asks World Bank for $2.5bn about the negative impact it would have.— PAGE 15

i Burundi peacekeepers plan called off

The African Union has dropped plans to deploy
peacekeepers to Burundi amid sustained violence,

loan as oil price slump starts to bite and instead will send a delegation of regional
leaders in a bid to revive peace talks.— PAGE 6

i Regulator raises telecoms merger fears

Britain’s telecoms regulator has urged Brussels to
block the proposed merger of O2 and Three over
3 Nation’s request follows Azerbaijan move 3 Extra $1bn sought from African institution concerns it will send mobile phone bills sharply
higher for UK users.— PAGE 15; SHARON WHITE, PAGE 9

SHAWN DONNAN — WASHINGTON

MAGGIE FICK — LAGOS
Nigeria has asked the World Bank and
African Development Bank for $3.5bn
in emergency loans to fill a growing gap
in its budget in the latest sign of the eco-
exporting economies in the developing
world. Azerbaijan, which last month
imposed capital controls to try and halt
a slide in its currency, is in talks with the
World Bank and the International Mon-
etary Fund about emergency assistance.
domestic product, had already risen to
$15bn, or 3 per cent, as a result of the
‘Nigeria is he added that Nigeria was not in imme-
diate need of an IMF programme.
Datawatch
recent turmoil in oil markets. facing A fund mission that visited the coun-
The $2.5bn loan from the World Bank
and a parallel $1bn loan from the ADB
significant try in January as part of a regular review
estimated that Nigeria’s economy grew Greenfield FDI in Iran China has
must still be approved by both boards. challenges 2.8-2.9 per cent in 2015 and predicted it 2003-15 ($bn) invested the

nomic damage being wrought on oil-
rich countries by plunging crude prices.
The request from the eight-month-
old government of President Muham-
madu Buhari is intended to help fund a
$15bn state deficit, which has been
deepened by a hefty increase in
public spending as the west African
country attempts to stimulate a slowing
economy.
It comes as concerns grow over the
impact of low oil prices on petroleum
from the
Nigeria’s economy is Africa’s largest Under World Bank rules its loan would grow 3.25 per cent this year. The 0 1 2 3 4 5 6 largest amount
and has been hit hard by the fall in crude would be subject to an IMF endorse- country’s financial buffers are also erod- China of capital in
prices — oil revenues are expected to fall ment of the government’s economic pol- sharp fall ing: foreign exchange reserves have US
Malaysia
greenfield
projects in Iran in
from 70 per cent of income to just a third
this year.
icies. But both loans carry far less condi-
tions than one from the IMF, which does
in oil prices’ nearly halved to $28.2bn from a peak of
almost $50bn just a few years ago.
Italy the 12 years to
Turkey 2015, with one
Finance minister Kemi Adeosun told not believe Nigeria needs a fully fledged Gene Leon, In any case, Mr Buhari and his govern- Russia third of that
the Financial Times recently that she international bailout at this point. IMF ment would be likely to resist a full IMF Japan investment
was planning Nigeria’s first return to “I think we all agree that Nigeria is representative rescue programme. The former military South Africa coming in the past
bond markets since 2013. But Nigeria’s facing significant external and fiscal in Nigeria ruler butted heads with the IMF while Australia two years,
UAE according to data
likely borrowing costs have been rising accounts challenges from the sharp fall leading the government in the 1980s
alongside its budget deficit. A projected in oil prices,” Gene Leon, the IMF’s rep- and many observers believe he would be Source: FDIMarkets from FDIMarkets
deficit of $11bn, or 2.2 per cent of gross resentative in Nigeria, told the FT. But reluctant to invite the fund in again.

France warns Britain it will resist

‘London veto’ over EU financial rules
ALEX BARKER — BRUSSELS French officials last week circulated a seven principles Mr Cameron wants
GEORGE PARKER — LONDON
ANNE-SYLVAINE CHASSANY — PARIS
secret paper to negotiators in Brussels enshrined in a protocol that enables the
and Berlin, laying down two red lines: EU single market to better coexist with
France has warned Britain it will block no new rights to be created for non-euro an integrated eurozone, and prevents
any attempt to secure a backdoor veto countries, and no veto powers that pre- the eurozone from ganging up to impose
Economists dim their view for the City of London, as Downing vent the eurozone from taking decisions rules on the rest of the EU.
over outlook for US Street discussions over the UK’s “new to integrate or manage an emergency. These concerns were discussed by Mr
deal” in Europe go down to the wire. While senior officials in London and Cameron and French president
Report i PAGE 2 Brussels see a deal in sight at a February François Hollande on Friday. One euro-
Details of the French stance emerged as 18 summit of EU leaders, unresolved zone official said: “Hollande and Cam-
British prime minister David Cameron disputes regarding migrant benefits and eron agree in principle on the eurozone
Austria €3.60 Macedonia Den220 met Donald Tusk, European Council French intervention over economic gov- but once you start drafting the text it
Bahrain Din1.7 Malta €3.50
Belgium €3.60 Morocco Dh43 president, to hammer out the final ernance highlight the obstacles ahead. gets complicated. Behind Cameron, you
Bulgaria Lev7.50 Netherlands €3.60
Croatia Kn27.50 Nigeria Naira715 touches to a roughly 10-page draft pack- Mr Cameron in particular is digging in may have George Osborne and the City
Cyprus €3.50 Norway NKr34
Czech Rep Kc100 Oman OR1.50 age designed to prevent “Brexit”, over the terms of an “emergency brake” pushing in another direction.”
Denmark
Egypt
DKr32
E£20
Pakistan
Poland
Rupee 280
Zl 18 expected to be issued early this week. on benefits for migrants, telling Mr Tusk Mr Cameron has stressed he is not
Finland
France
€4.10
€3.60
Portugal
Qatar
€3.50
QR15 While a proposed “emergency brake” it must be designed to “apply immedi- seeking any veto or special City carve-
Germany
Gibraltar
€3.60
£2.70
Romania
Russia
Ron17
€5.00
to limit benefits to EU migrants is the ately” and stay in force for long enough out. But details of how the safeguard
Greece
Hungary
€3.50
Ft990
Saudi Arabia
Serbia
Rls15
NewD420
most contentious issue, Paris has fired a to “resolve the underlying problem”. He mechanism would work, including what
India
Italy
Rup195
€3.50
Slovak Rep
Slovenia
€3.60
€3.50
pre-emptive shot against another pillar sees the brake mechanism as a stopgap happens if no compromise was reached,
Kazakhstan
Kenya
US$5.50
Kshs300
Spain
Sweden
€3.50
SKr37
of the UK reform wishlist: safeguards to a more permanent solution. remain highly contentious.
Kuwait KWD1.50 Switzerland SFr5.90 to protect non-euro countries. France has long voiced its unease over Sherpas guide leaders page 2
Latvia €6.99 Tunisia Din7.50
Lebanon LBP7500 Turkey TL10
Lithuania €4.30 UAE Dh15.00
Luxembourg €3.60

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9 770174 736111
2 ★
FT survey
Experts less upbeat on US outlook
Fears grow that biggest
driver of global growth
is on verge of recession
ERIC PLATT — NEW YORK
Leading global economists see a 20 per
cent chance of the US falling into reces-
sion this year, and a diminishing likeli-
hood of the Federal Reserve raising
rates as previously thought.
A Financial Times survey of 51 econo-
mists, conducted in the days after the
Fed’s January meeting, underscores the
impact of the past month’s severe mar-
ket turbulence and lacklustre economic
reports out of the US and China.
The fear that the world’s largest econ-
omy, considered the lone engine of glo-
bal growth, is on the verge of recession
has intensified. In the FT’s December
survey, economists put the odds of a US
recession at 15 per cent over the next
two years. Now they see a one in five
Macedonia approaches breaking point
The tiny country on the
frontline of Europe’s migrant
inflow is struggling to cope
ANDREW BYRNE — GEVGELIJA
In an empty former Yugoslav army
barracks in Macedonia’s Vardar valley,
an enormous 1960s telephone terminal
sits unplugged in the hallway. Most
rooms are empty. Few lights work.
This modest two-storey building in
the frontier town of Gevgelija is the cri-
sis management centre at what is set to
become the EU’s frontline against the
largest surge of migrants in more than
half a century.
Not everyone is optimistic about the
prospects. Macedonia is a tiny state with
an economy smaller than Mali’s.
“The idea this country is going to
organise and sustain an operation of this
scale, deal with the inevitable ugly con-
sequences at the border and confront
the people smuggling bonanza this
policy will produce is absurd,” says
Gerald Knaus, chairman of the Euro-
pean Stability Initiative, a think-tank.
“The notion that you can use the
weakest states in this region to build a
wall against a Schengen country is
crazy,” he adds, referring to Greece’s
membership of the EU’s free movement
zone.
But the idea of turning Macedonia, a
non-member of the EU, into a firewall
against refugees travelling north from
Greece has gained support from
Brussels and Berlin since it was initially
promoted by central European coun-
tries such as Hungary.
Advocates of ringfencing Greece say
only a lockdown of the EU’s external
borders can prevent a total collapse of
Schengen. Critics warn that sealing
Greece’s northern border will cause a
humanitarian disaster and destabilise
the volatile Balkans region.
“Macedonia is a small country, bur-
dened by a hard economic situation and
serious interior political problems,”
Oliver Spasovski, interior minister, told
the Financial Times. A year-long politi-
cal crisis has culminated in a caretaker
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Published by: The Financial Times Limited, 1 Southwark
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Belgium; BEA Printing sprl, 16 Rue de Bosquet, Nivelles
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Milano n. 296 del 08/05/08 - Poste Italiane SpA-Sped. in
Abb.Post.DL. 353/2003 (conv. L. 27/02/2004-n.46) art. 1
.comma 1, DCB Milano.
FINANCIAL TIMES
INTERNATIONAL
chance of recession in the next 12 Hooper, chief economist of Deutsche 20%
months. Bank. Until recently, few economists
Likelihood of
The concern about a possible global
slowdown, which prompted the Bank of
Japan to cut interest rates to negative
entertained the notion that the US could
tip into recession. The robust labour
market, alongside a briskly expanding
US falling into a
recession this year,
according to top
territory on Friday, is likely to keep the
Fed from fulfilling its forecast of lifting
service sector, was thought likely to off-
set declines in the country’s manufac-
economists
6%
benchmark interest rates by 100 basis
points this year, leading economists say.
The economists downgraded their
turing sector, which has struggled with
the strengthening dollar.
A slowdown in China has renewed
Slide in global stock
markets this year,
including a 5% fall
expectations of the US central bank’s fears that the US economy is vulnerable, in the US
ability to tighten policy this year, with with investors pointing to dislocations
their median forecast coming in halfway in credit markets and a spate of
between two and three 25 basis point expected defaults in the energy sector.
rate rises in 2016. Half of those surveyed Lists compiled by Standard & Poor’s and
said the Fed would lift two or fewer Moody’s of companies most in danger of
times. default have swelled.
In December, the group of economists Global stock markets have slid 6 per
had expected 75 bp of tightening. Nearly cent this year, including a 5 per cent
three-quarters then projected three or drop in the US, while worldwide high-
more rises. yield credit has declined nearly 2 per
“There’s no question that the risks cent. Strategists with Citigroup note
have risen given the hit that financial that a “stunning” 31 per cent of S&P 500
conditions have taken, given the soft- companies have fallen more than 30 per
ness in various indicators,” said Peter cent from their 52-week highs.
EU. Refugee crisis
Migrants make administration taking office ahead of the country’s president. Gevgelija was
their way to a April’s elections, which the largest calm last week but, on occasion, police
temporary camp opposition party has threatened to boy- have resorted to stun grenades and tear
in Miratovac, cott. “Our capacity to successfully man- gas to push back rejected asylum seekers
on the border age the existing refugee momentum has from Iran, Pakistan and Morocco. Field
between Serbia reached its peak,” Mr Spasovski said. staff with Médecins Sans Frontières say
and Macedonia Since August, Europe’s fourth poorest in the past two months they have treated
EPA
country has been struggling with a daily 70 migrants for injuries sustained in so-
inflow that has rarely fallen below called border pushbacks.
2,000. The government has now EU officials return to Skopje this week
appealed to Europe for financial aid and for further talks on financial aid and the
manpower. possibility of deploying hundreds of
In the meantime, the police are European police at the Greek frontier.
stretched. Although salaries are being But some analysts warn a border lock-
increased, working conditions for Mace- down would only divert migrants
donian police are poor, equipment is through Albania and revive old smug-
antiquated and overtime wages are gling networks in a region long plagued
rarely paid on time. by the illicit transport of petrol, guns
“We are doing everything we can, but and people.
we are a country of 2m people and 1m Macedonian forces have prevented
people passed through our country in 1,219 irregular border crossings in Janu-
2015,” said Ivico Bocevski, an adviser to ary alone yet people smugglers openly
Financial rules
UK regulators help Iranian banks reintegrate after sanctions
MARTIN ARNOLD — LONDON formal approvals, but because they
would not meet the various thresholds
Top UK regulators are trying to help
and fundamental rules on areas like
three Iranian-owned banks reintegrate
risk-management, capital and govern-
into the financial system after years of
ance,” said one person familiar with the
NOVEMBER 7 2015
international sanctions — by deploying
situation.
a unit designed to aid start-ups.
The banks’ problems highlight the dif-
The UK-based Iranian lenders would be ficulty of reconnecting Iranian-owned
Spain; Fabripress, C/ Zeus 12, Polígono Industrial Meco-
R2, 28880 Meco, Madrid. Legal Deposit Number among the first beneficiaries of the just- entities with the global financial system
(Deposito Legal) M-32596-1995; Publishing Director, launched unit, which allows participat- even after sanctions have been lifted.
Lionel Barber; Publishing Company, The Financial Times
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office; C/ Infanta Maria Teresa 4, bajo 2, 28016, Madrid. special helpline and case officers. launched this year by the Bank of Eng-
ISSN 1135-8262..
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in Chief: Roula Khalaf. Origin of publication, twofour54, vated the licences of the three banks — and its sister regulator the Financial
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France; Publishing Director, Dominic Good, 40 Rue La Persia International Bank, Melli Bank Conduct Authority. The unit is designed
Boetie, 75008 Paris, Tel. +33 (0)1 5376 8256; Fax: +33 (01)
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1148-2753. weeks ago. The move was part of the
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34204, Bagcilar- Istanbul, Tel. +90 212 440 24 24. international deal reining in Tehran’s
©Copyright The Financial Times 2016.
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away, not because there are any more Helping hand: a branch of Bank Melli in Tehran — Simon Dawson/Bloomberg
Monday 1 February 2016
GLOBAL INSIGHT
FRANCE
Anne-Sylvaine
Chassany
Investors have pointed to sputtering
capital markets as a sign the credit cycle
has turned. Large investment grade
groups have had to pay up to issue debt,
while the door has been completely shut
Macron economics
to low-rated energy companies.
“Investors are unsure if there is a sys-
is proving a thorn
tematic or spillover event coming out of
the energy sector,” said Michael Gapen,
US economist with Barclays.
in Hollande’s side
Economists surveyed by the FT
emphasised that while the odds of a
E
recession had climbed, a large majority mmanuel Macron, France’s economy minister,
still expected the US to escape this pros- is back doing what he does best: ruffling the
pect. Several who have fielded increased Socialist party’s feathers.
investor calls on the subject said that the But his latest attack on one of the party’s
conversation had been skewed because proudest achievements — legislation setting out
of the near obsession with the price of a 35-hour working week — may have bigger consequences
oil, a point they argued had more to do for his own job than for France’s labour market.
with supply than global demand. The ultimate decision on whether Mr Macron will
Mr Gapen, who put the odds of a remain in government rests with President François Hol-
recession between 10 and 15 per cent, lande, who will need to decide if he gives greater priority to
said that he still thought strong con- reforming the economy or to shoring up the Socialist party,
sumption trends would keep the US which has made clear it is none too fond of Mr Macron.
economy from contraction. Senior party figures have queued up to criticise the 38-
year-old former Rothschild banker in recent days after
comments he made at Davos, of all places.
Mr Macron said a new bill this year would “de facto”
reverse the law on the 35-hour week — often criticised for
making France’s dysfunctional labour market still more
rigid — by allowing companies to negotiate overtime rates
with employees. He implied overtime rates need no longer
be at least 10 per cent above normal pay. “If you can nego-
tiate deals at company level so that there is nearly no extra
compensation [for overtime], then you can create flexibil-
ity,” he said.
The law, passed in 2000 by a previous socialist govern-
ment, is cherished by many on the left. Anne Hidalgo,
Paris’s Socialist mayor, said Mr Macron was trying to
“satisfy a few large investors that rank countries according
to their free-market stance”. Even prime minister Manuel
Valls, who is on the right of the party, slapped down his
economy minister. Over-
time is “paid at least 10
per cent more,” Mr Valls
Macron has played
said. “This principle a vital role in
applies to all.”
Mr Macron has played
improving France’s
a vital role in improving image among
France’s image among
global investors, undoing
global investors
some of the damage
wrought by two years of tax rises and anti-business rheto-
ric before his appointment in 2014 as economy minister.
He has also helped Mr Hollande push social democratic
ideas within the party itself. “Hollande and Valls are seek-
ing to force an ideological aggiornamento of the Socialist
party,” says Jérôme Fourquet at IFOP, a pollster.
But with the presidential elections in 15 months and
far-right leader Marine Le Pen widely predicted to qualify
for the second round, Mr Macron’s position is becoming
problematic. “Hollande needs to make sure he can get as
many voters on the left voting for him in the first round as
possible,” Laurent Bouvet, political sciences professor at
Versailles University, says. “Macron is popular among
centre-right sympathisers but this popularity will not
translate into votes for Hollande.”
Mr Hollande will therefore need to make amends with
hardliners in his party “and their condition will be to get
rid of Macron or muffle him”, Mr Bouvet says. The political
ply their trade at nearby hotels in imperative is greater now the government is facing a back-
Greece. The charge to shuttle rejected lash over a plan to strip citizenship from dual nationals
migrants across the border at night is who commit terrorist crimes, a measure some socialists
about €500 — more than a Macedonian regard as discriminatory and ineffective. Mr Macron could
police officer’s monthly salary. end up as the sacrificial lamb in a widely expected govern-
On Thursday, officials shut the border ment reshuffle next month.
for several hours for the second time in a There have been signs Mr Macron has grown frustrated.
week, citing temporary closures by After the terrorist attacks in November and the record-
Macedonia’s northern neighbours. breaking performance in December regional elections of
Hundreds of people were left out in the Ms Le Pen’s National Front, he pushed for more economic
cold overnight in Greece. reforms, including boosting less well-paid “minijobs” for
Anxious officials in Skopje are the low-skilled, according to people close to him. But Mr
increasingly worried by such restric- Hollande has instead put his faith in training schemes and
tions. One notes that border closures by subsidies to curb unemployment.
countries such as Serbia and Croatia are Sacrificing Mr Macron would send a disastrous signal
becoming “more frequent and longer abroad, says Bruno Cautrès, a professor at Sciences Po. “It
lasting”, adding: “I worry this will soon would be proof that the reforms are on hold,” he says. But,
become permanent.” faced with a choice between international investors and
If such fears become reality, Gevgelija voters, Mr Hollande would hardly be the first politician to
will find itself on the frontline of a much choose the latter.
bigger refugee challenge.
Wolfgang Münchau page 9 anne-sylvaine.chassany@ft.com
ulatory approval and start operations assets mostly in cash deposits and bank
by allocating specific resources to them. loans, had been under sanctions since
The Iranian banks were judged to need 2007. Melli Bank, which was hit by sanc-
similar levels of assistance. tions in 2008, has €382m of assets, most
It is not clear how long it will take the of it with financial institutions and cen-
three banks to update their systems and tral banks. Persia International Bank,
controls to meet current requirements. which has €221m of assets mostly in
But regulators had been working with sovereign bonds and central bank
them for months to prepare for sanc- deposits, is owned by Bank Mellat and
tions being lifted and it could take sev- Bank Tejarat in Iran. It specialises in
eral more before they are operational. trade finance for Iranian clients and was
In total, Iran expects to regain access subjected to sanctions in 2010.
to about $32bn of more than $100bn of Banks based in Iran face similar chal-
financial assets frozen across the world, lenges to improve their systems, con-
as sanctions unwind. trols and governance, according to a
Bank Sepah, which has €369m of new report by Mazars, an accountancy
firm. It found that years of sanctions
had “left deep scars in the banking
sector” and called for Tehran to revise
capital and solvency requirements.
“The Iranian banking sector has not
yet adopted Basel I or II, let alone Basel
III,” Mazars added, in reference to the
global regulations for capital adequacy.
Four out of nine Iranian banks had
not yet published annual reports for the
year to March 2015, while only five out
of nine Iranian banks provided an audit
report as part of their annual financial
statements.
Monday 1 February 2016
Sherpas guide
political leaders
on final push to
Brexit summit
Seven aides have gone as far as they
can — the rest is up to their masters
ALEX BARKER — BRUSSELS
After more than six months of hush-
hush talks, a proposed compromise on
Britain’s revised terms of EU member-
ship will emerge this week. It will trigger
a diplomatic sprint to close a deal at a
summit of EU leaders on February 18,
clearing the path for a momentous UK
referendum in the summer on whether
to stay in the bloc.
The document is the culmination
of the most secretive, undercover nego-
tiations attempted in the fishbowl of
Brussels, handled within a tight circle
of battle-scarred Eurocrats and British
mandarins.
One veteran “sherpa”, the nickname
for officials who prepare leaders to scale
a summit, described the British ques-
tion as “something like torture”. The
seven officials most directly involved
know they have reached the limit of
what can be done backstage. The rest is
for their bosses.
Sir Ivan Rogers
A Whitehall warhorse who has been at
David Cameron’s side throughout Brit-
ain’s EU renegotiation. In late 2011 he
ended a brief spell in banking to become
the government’s top Europe adviser,
from where he helped steer a less Ber-
lin-reliant approach. Two years later he
was sent as the UK emissary to Brussels,
a town he got to know in the 1990s as
chief of staff to trade commissioner Sir
Leon Brittan. An inveterate worrier
with an eye for hidden political bear-
traps, Sir Ivan warned Mr Cameron
against pushing for a four-year ban on
in-work benefits for new migrants.
Tom Scholar
The son of a Whitehall mandarin, Tom
Scholar followed in his father’s footsteps
to the top flights of the British civil serv-
ice. Before becoming Mr Cameron’s
adviser on Europe, he served stints with
Gordon Brown at the Treasury and
Downing Street. Politicians have prized
his cool, detached demeanour and fast
decision-making. A relative late-comer
to EU politics, he advised against Mr
Cameron’s more radical ideas on treaty
change and migration, much to the cha-
grin of some Eurosceptics.
Jeppe Tranholm-Mikkelsen
Of all the backroom negotiators on the
EU side, Mr Tranholm-Mikkelsen’s
imprint is perhaps most visible on any
UK deal. As the top civil servant in the
European Council, the veteran Danish
diplomat has been co-ordinating talks.
Although only a junior official at the
time, he took inspiration from the Dan-
ish EU treaty deal of 1992, which in
effect solved a political problem over a
referendum with the promise of post-
dated treaty change, and helped make
it the template for the UK deal. Legend
has it that he once memorised all possi-
ble Polish milk quotas to help close
a negotiation.
Piotr Serafin
A career technocrat, Piotr Serafin is the
right-hand man to Donald Tusk, the
former Polish premier turned president
★ FINANCIAL TIMES
INTERNATIONAL
Jeppe Tranholm-Mikkelsen: top civil Martin Selmayr: politically outfoxed Jonathan Faull: came up with the
servant in the European Council David Cameron in Brussels ‘emergency brake’ proposal
of the council. He is one of Poland’s most a former head of German military coun- One sherpa
seasoned EU fixers, with a reputation ter-intelligence. His career has been
for effective arm-twisting that Mr Tusk devoted to European institutions, from described
has valued both in Warsaw in Brussels. the commission to the European Cen- the British
Mr Serafin and the Tusk team are rela- tral Bank, with an interlude working for
tively confident in the potential for a an arm of Bertelsmann, the media question as
political deal between EU leaders over- group. By turns feared, admired and ‘something
riding some legal misgivings of the com- resented, Mr Selmayr is a staple of Brus-
mission; it may prove one of the biggest sels gossip and conspiracy; in their more like torture’
gambles of the negotiation. paranoid moments, Mr Cameron’s aides
worry he wants Britain out of the EU.
Martin Selmayr
A bureaucratic force of nature and prob- Jonathan Faull
ably the most powerful chief of staff to a The dean of British Eurocrats, Mr Faull’s
commission president since the institu- career has tracked the peaks and
tion was founded. Mr Selmayr is a Ger- troughs of London’s influence in Brus-
man lawyer with a federalist calling who sels. A commission lifer with more than
politically outfoxed Mr Cameron when 30 years’ service, Mr Faull is its point-
shepherding his boss Jean-Claude man on the UK referendum. As a
Juncker into office. He was sold on the trained lawyer and competition expert,
European ideal after he toured the bat- he cut his teeth in the cabinet of Sir
tlefields of Verdun with his grandfather, Leon. Later as head of the single market
3
Hubert Legal: head of the European
Council legal service
department, he found himself uncom-
fortably wedged between the UK Treas-
ury and its nemesis, Michel Barnier, the
hyperactive French commissioner over-
seeing a deluge of post-crisis financial
rulemaking. He is closely involved in
the search for a solution to London’s
demand for a four-year ban on migrants
accessing UK benefits and is the creator
of the “emergency brake” compromise.
Hubert Legal
Head of the council legal service since
2011, Mr Legal’s role is to act as the top
lawyer for EU leaders. Known for his
wit, visitors to the Frenchman’s office
note a poster declaring: “Make it legal!”
He is one of the most creative minds in
finding a deal for Mr Cameron; like the
UK he tends to see the EU as a union of
sovereign member states.
Wolfgang Münchau page 9
4 ★ FINANCIAL TIMES Monday 1 February 2016

VOTE 2016

US election

Trump and Sanders fight to upend political status quo

Influential poll ahead of
first votes reveals strong
support for the outsiders
DEMETRI SEVASTOPULO — DES MOINES
COURTNEY WEAVER — DUBUQUE, IOWA
Donald Trump and Bernie Sanders are
within striking distance of overturning
the US political status quo, according to
polls, as the 15 White House contenders
make their final pitches to Iowans ahead
of today’s first-in-the-nation caucuses.
The New York property magnate run-
ning for the Republican nomination and
the 74-year old Vermont senator trying
to beat Hillary Clinton in the Demo-
cratic race were widely dismissed as
jokes when they launched their cam-
paigns in the middle of last year. But the
final polls ahead of the Iowa caucuses,
which fire the starting gun on voting in
the 2016 presidential race, show the
extent to which conventional wisdom
has been overturned by both men.
The latest Des Moines Register poll,
which has one of the best forecasting
records in Iowa, shows Mr Trump lead-
ing Mr Cruz, the Texas senator, by 28 per
cent to 23 per cent, while Marco Rubio,
the Cuban-American senator from Flor-
ida, remains in third place with 15 per
cent. Mr Sanders, who trailed Mrs Clin-
ton by several dozen points just a few
months ago, has closed the gap, with
Mrs Clinton now holding a narrow 45
per cent to 43 per cent advantage.
While Mr Trump is a billionaire capi-
talist who told fans last week that he was
“greedy, greedy, greedy”, and Mr Sand-
ers is a self-avowed socialist, both men
have tapped into a similar zeitgeist, as
Americans are increasingly angry about
stagnant incomes and a lack of eco-
nomic opportunity despite the recovery
since the global financial crisis. Mr
Trump’s supporters are convinced that
he will “make America strong again”
while Mr Sanders’ fans believe that he
will make the country more equitable
for all Americans.
The two men have upended the 2016
race. In January 2015, it was assumed
that Jeb Bush, the former Florida gover-
nor, and Scott Walker, the Wisconsin
governor, would compete to challenge
Mrs Clinton in the general election. But
Mr Walker was one of the first candi-
dates to drop out, and Mr Bush received
only 2 per cent support in the Des
Moines Register poll.
As the Republican establishment pan-
ics about the possibility of Mr Trump or
Mr Cruz as their nominee out of concern
that they would lose to Mrs Clinton due
to their anti-immigrant rhetoric, some
Republicans are pinning their hopes on
Mr Rubio, who they see as the strongest
mainstream candidate. “This election is
a referendum on our identification as a
nation and a people,” Mr Rubio said in
Ames this weekend.
Establishment Democrats are equally
worried that the US would not elect a
socialist. But at events in Iowa in recent
days, Mr Sanders challenged the notion
that Mrs Clinton was the stronger candi-
date to take on Mr Trump, referring to
one national poll that showed he would
beat the billionaire by a bigger margin
US focus
All the latest news, comment,
analysis and multimedia content
concerning the United States
www.ft.com/us
than Mrs Clinton in the election.
“It is just not true to suggest that she
will be the stronger candidate in the
general election,” Mr Sanders said.
Mr Sanders’ campaign has launched
one final fundraising push on the back
of the Des Moines Register poll. Over the
weekend it announced it had received
3m individual campaign donations —
the largest number of donations that
any presidential candidate has received
at this point in the campaign cycle.
Speaking to supporters at Iowa’s
Dubuque Airport on Saturday, Mr
Trump rolled on to the stage in his pri-
vate plane as the music from the film Air
Force One played. While Mr Trump has
exuded confidence that his poll num-
bers will result in a first-place finish, he
is careful to emphasise that it is a tight
race amid concerns his supporters will
become too complacent.
“You haven’t had a winner in 16
years,” he teased the crowd in Dubuque,
a reference to the fact that no Iowa
Republican caucus winner has gone on
to win the Republican nomination since
George W Bush. “If we win in Iowa, we
can run the table for the first time ever.”
The candidates and pundits are
closely watching turnout in the cau-
cuses, which are more drawn out and
time consuming than primary elections.
In the case of Mr Trump and Mr Sand-
ers, the key question is whether their
excitement and appeal will translate
into actual caucus-goers.
Eric Cantor, the former Republican
House majority leader who was ousted
by the Tea Party movement that is pro-
pelling Mr Trump, cautioned that polls
around the world in recent years had
predicted the wrong results.
Edward Luce page 9

White House race how primaries and caucuses drive nominations

SAM FLEMING — WASHINGTON
The battle for the US presidency shifts
into a new gear with the start of states’
caucuses and primary elections in Feb-
ruary 2016, beginning with the Iowa
caucuses today and followed by the New
Hampshire primary on February 9.
Candidates on both sides of the political
divide face fierce competition this year,
and it could take until well into the pri-
mary season before a clear nominee has
emerged for both the Democrats and
Republicans. So how do these contests
work?
What are the primaries and caucuses
for?
They are the way America chooses its
presidential nominees and will con-
tinue, state by state, until June, before
July’s Republican and Democratic party
conventions. These idiosyncratic con-
tests have evolved over time, rather
than being stipulated in the US Consti-
tution, and involve voters determining
the affiliations of delegates their states
will send to national party conventions,
where the final nominee is anointed.
The rules governing them are complex.
What is the difference between a
primary and a caucus?
Caucuses used to be a common way of
choosing nominees, but now only a
handfulofstates,includingIowa,Alaska,
and Nevada, rely on them. Primaries are
more widely used and are like typical
elections, with polls open all day and
peopleturninguptocasttheirballot.
Caucuses are quirkier affairs in which
voters assemble for meetings in schools,
churches and community halls. Turn-
outs in caucuses tend to be much lower
and frequented by relatively narrow
groups of enthusiasts and ideologues.
For example, in 2008 Barack Obama,
the winner of Iowa’s Democratic caucus,
conduct far more elaborate rituals in
which attendees publicly signal their
preferences by congregating in desig-
nated locations. If a candidate fails to
meet a 15 per cent threshold at the
event, his or her supporters are then
Key states: wooed by other contenders, as are unde-
when they vote cided attendees. Caucus results deter-
firmly anchored to the outcomes of
the state primaries and caucuses. This
means that the result is normally clear
by the time of the summer conventions.
However, the link between state results
and the exact number of convention
delegates is not easy to follow.
For the Democrats, delegates are allo-
So is the party convention a mere
formality?
Normally yes, but not automatically.
The Republican contest in 1976 was still
undecided at the time of the convention
at Kansas City, where Gerald Ford even-
tually prevailed over Ronald Reagan.
Since then a clear winner has always
been apparent by the time the conven-
tions come around.
The turbulent contest on the Republi-
can side this time has led to speculation
that there will be a contested convention
in July, in which an inconclusive first
tallyleadstomultipleroundsofballoting
and intense dealmaking. Delegates may
become free agents in these later rounds.
The Republicans are holding their con-
vention in Cleveland, Ohio, from July
18-21, while the Democrats’ convention
willbeinPhiladelphiafromJuly25-28.
How important are early results from
Iowa and New Hampshire?
Iowa and New Hampshire are outliers:
relatively small states with far lower
unemployment rates than the national
average and predominantly white pop-
ulations, suggesting they are far from
representative of the concerns of the
broader US population. Yet the two
states garner (and relish) huge global
attention given their vociferously
defended positions at the start of the
electoral calendar.
Advocates argue the intense cam-
paigning in the two states allows local
voters the opportunity to examine can-
didates much more closely. A candidate
who wins either contest and then moves
A campaign on to poll well in South Carolina and
billboard Nevada would go into the all-important
in Iowa for flurry of contests on ‘Super Tuesday’ on
Republican March 1 with enviable momentum. In
Presidential almost every race for the past 36 years,
Candidate Jeb each party’s eventual nominee has won
Bush — Alex Wong/Getty either Iowa or New Hampshire.
Images

received the votes of just 4 per cent of mine which delegates are sent to county cated under a proportional system, with How much weight should be put on the
the state’s eligible voters, according to a February 1 Iowa and then state conventions, which in a cadre of unpledged delegates infor- opinion polls?
Harvard Kennedy School study. February 9 New Hampshire turn determine the delegates at the mally called “superdelegates” who have Past elections have shown how badly
March 1 ‘Super Tuesday’. national convention. the potential to swing the result, pre- awry polls can go. In the January 2008
How consistent are the rules? Fourteen states vote, sumably in favour of an establishment New Hampshire primary, all 13 polls in a
The rules vary not only from state including Colorado, Virginia So how do the results drive the candidate such as Hillary Clinton. final round of pre-election surveys pre-
to state, but also between the two and Texas eventual nomination? The Republicans allow states more dicted an Obama win, only for Hillary
parties. Some states’ contests March 15 Six states vote, The modern presidential nominating latitude in allocating delegates, says Clinton to emerge as victor. This year’s
are only open to registered including Florida, Illinois process was ushered in following the Joshua Putnam, a lecturer at the polls will provide plenty more grist for
party members, for example, and North Carolina chaotic 1968 election between Richard University of Georgia. The latest the critics. Take the issue of sample
while others are open to all eli- April 5 Wisconsin Nixon for the Republicans, Hubert Republican reforms require states to sizes. In New Hampshire in 2012 the
gible voters — and there are April 19 New York Humphrey for the Democrats and follow a broadly proportional allocation average pool of Republican voters inter-
variants in between. In Iowa April 26 Maryland and the independent George Wallace, with during a two-week window in early viewed was 590, according to an FT
the Republican Party holds Pennsylvania the goal of democratising the process March, after which they can shift to a analysis of data collected by Real Clear
secret ballots at its caucuses, June 7 California and and ending jockeying by party elders. winner-takes-all system or some sort of Politics. So far this year it stands at 490.
whereas the state’s Democrats New Jersey The final nomination is meant to be hybrid. The result is less precise polls.

Campaign trail. On the stump

Republican rivals cross Iowa to steal support from property mogul

DEMETRI SEVASTOPULO
CEDAR RAPIDS, IOWA
Chris Christie strides into the Chrome
Horse Saloon before noon on Saturday.
The straight-shooting New Jersey gover-
nor takes the microphone and tells the
Cedar Rapids crowd why he is holding
his second rally of the day in a bar.
“When you see me in a place like
this . . . I become smarter, and more
charming and better looking and
funny,” Mr Christie, one of the Republi-
can presidential contenders, explains to
the patrons. “By the time you walk out
of here, you are going to be: ‘Damn,
man, that guy should be emperor.’”
Across the Iowa plains in Ames,
Marco Rubio, the Cuban-American sen-
ator, finishes his stump speech and
poses for hundreds of photos with fans.
After he stops to apply some lip balm,
the man next in line suddenly looks
nervous. “I’m not going to kiss you,” Mr
Rubio reassures him. “Unless you are
going to caucus for me.”
With Iowa poised to hold its caucuses
this evening — the first vote of the 2016
race after months of polls, debates and
campaign rhetoric — the contenders are
furiously criss-crossing the state, from
Sioux Falls in the conservative north-
west to towns on the eastern border with
Minnesota and Illinois.
While the Democratic race has boiled
down to Hillary Clinton and Bernie
Sanders, 11 Republicans are trying to
siphon support from Donald Trump,
the property mogul who is dominating
the contest.
In the Chrome Horse Saloon, Mr
Christie saved his toughest lines for Mr
Trump, saying the former star of The
Apprentice was as unqualified as Barack
Obama to be president.
“It is 48 hours now till the Iowa cau-
cuses; show time is over . . . we are not
electing the entertainer-in-chief, every-
body . . . we are electing the command-
er-in-chief,” said Mr Christie.
“This isn’t a game. This isn’t a TV
show. This is the real world.”
Jenny Zahradnik, a self-employed them that they would not always like his a “buffoon” and “a genuine lunatic”.
woman who had been thinking of back- tough solutions, but that he “was not Mr Christie remains in the tier of cen-
ing Mr Sanders, said there was a 40 per running for Prom King”. trist Republicans, along with Jeb Bush
cent chance she would support Mr “I am impressed. I appreciate the and John Kasich, who are hoping to
Christie after seeing him perform at the straight talk and the courage and brav- make their real mark in New Hamp-
town hall. Mr Christie held several frank ery to admit that I don’t have the shire, a state that has less of an evangeli-
exchanges with members of the audi- answers,” said Ms Zahradnik, who cal tinge than Iowa.
ence, and won applause for reminding added that she thought Mr Trump was Ted Cruz, however, is relying on
‘We are not electing the
entertainer-in-chief . . .
we are electing the
commander-in-chief ’
strong support from evangelicals, who
like his ultra-conservative, ideological
stance and who can help him beat Mr
Trump by mobilising religious networks
across Iowa.
Mr Cruz has persuaded many con-
servative leaders that he has the finan-
cial capability to sustain a strong cam-
paign beyond the state; previous Iowa
New Jersey governor Chris Christie at Sioux City, Iowa, yesterday — AP winners were unable to translate their
victory into long-term momentum.
Teresa Carson, 58, attending a Cruz
rally, said she supported the Texas sena-
tor but that her husband preferred Mr
Trump. “He thinks Trump will be
tougher . . . I think he may be a little too
rough around the edges for us,” she said.
“Cruz knows how government works
and he is more in line with my religious
convictions.”
While Mr Cruz wants to win Iowa, Mr
Rubio needs enough support to urge the
Grand Old Party establishment to rally
around him in a quest to defeat Mr
Trump and Mr Cruz. In Ames, he
attacked his fellow senator, accusing
him of failing to support defence spend-
ing and for throwing the “kitchen sink”
at him by editing video footage to mis-
construe his positions.
As Mr Rubio was preparing to leave,
he was asked for a photo with a woman
and her young son, who resembled a
character from Star Wars. “You are the
only Jedi here. I may need your powers
on Monday.”
Monday 1 February 2016 ★ FINANCIAL TIMES 5
6 ★
Political violence
African Union
drops plan for
peacekeepers
in Burundi
WILLIAM WALLIS — ADDIS ABABA
The African Union has pulled back
from deploying peacekeepers to
Burundi to stop mass bloodshed after
opposition from the Burundian presi-
dent and some other regional leaders.
The pan-African bloc will instead send
a delegation of regional leaders to the
central African country, where protests,
militia violence and state-sponsored
executions have fuelled fears of a repeat
of mass killings that characterised the
1993-2006 Burundian civil war.
Burundi shares the same explosive eth-
nic make-up as neighbouring Rwanda.
The AU delegation’s mission will be to
revive peace talks and cajole Burundi
president Pierre Nkurunziza into recon-
sidering his opposition to AU troops,
Smail Chergui, AU commissioner for
peace and security, said at the end of a
two-day summit in Addis Ababa.
The AU first proposed deploying
5,000 soldiers last December in
response to sustained political violence
sparked by Mr Nkurunziza’s quest to
remain in power beyond two elected
terms. Hundreds of people have been
killed, and more than 230,000 have fled
the country over the past nine months.
The AU charter grants the bloc the
right to intervene in an African state in
the event of “war crimes, genocide and
crimes against humanity”. It was an arti-
cle included in the organisation’s 2001
founding principles out of a desire never
again to stand by while mass killings,
such as those during the 1994 genocide
in Rwanda, take place.
However, regional diplomats said
conditions for invoking the charter are
not yet in place. Other African leaders
are also wary of setting a precedent that
might allow the AU to intervene in their
own countries without consent.
Alain Aimé Nyamitwe, Burundi’s
foreign minister, had earlier described
the proposed peacekeepers as an
“invasion force”.
Malaysia fund
Swiss wreck effort to contain 1MDB scandal
Alpine nation finds
‘serious indications’ of
$4bn misappropriation
MICHAEL PEEL — BANGKOK
JEEVAN VASAGAR — SINGAPORE
Malaysia’s leaders are battling the most
severe international pressure yet over
alleged large-scale corruption after
Switzerland torpedoed efforts to con-
tain the growing scandal around the
1MDB investment fund.
Kuala Lumpur’s attempts to play
down an affair that has rocked the coun-
try and embroiled Najib Razak, prime
minister, have been derailed by a Swiss
criminal investigation that said on Fri-
day it found “serious indications” that
around $4bn was misappropriated.
Switzerland’s unusually aggressive
intervention reflects international con-
cern the Malaysian authorities may
have been trying to bury the story. Ear-
lier in the week Mohamed Apandi Ali,
Malaysia’s attorney-general, cleared Mr
Najib of any wrongdoing over payments
of $680m into his bank account. Critics
alleged the transfers were linked to
1MDB, which the fund and the prime
minister deny.
John Pang, a senior fellow at the
S Rajaratnam School of International
Studies in Singapore, said the Swiss
statement undermined Mr Apandi’s
claim that the funds paid into Mr Najib’s
account were a donation from the Saudi
royal family. “This makes it very diffi-
cult for the attorney-general to simply
close off the investigation,” Mr Pang
said. “It makes the attorney-general’s
statement difficult to credit.”
After the Swiss move, Mr Apandi said
his office intended to “take all possible
steps to follow up and collaborate with
our Swiss counterparts”, adding that
investigations into 1MDB were continu-
ing. He described the now-closed inves-
tigation into the donations to Mr Najib
— which the country’s anti-corruption
commission is seeking to reopen — as
“entirely separate”.
Mr Najib has consistently denied
claims of misappropriation of more
than $1bn at 1MDB, a debt-laden state
FINANCIAL TIMES
INTERNATIONAL
investment fund set up at his behest and
whose advisory board he chairs. 1MDB
has also been dismissive of critics who
have alleged criminal wrongdoing,
branding allegations against it “spuri-
ous”. But Swiss authorities said a crimi-
nal investigation had “revealed serious
indications that funds have been misap-
propriated from Malaysian state com-
panies”, adding that the $4bn at stake
had been intended for economic and
social development projects.
The investigation follows a case
opened last August against two
unnamed former 1MDB officials on
charges including bribery. The Swiss
attorney-general said there were “alle-
gations of criminal conduct” in four
Najib Razak, cases involving 1MDB, in a period span- [My office]
bottom right, ning 2009 to 2013. A spokesman for the
attends a budget Swiss attorney-general’s office said at will ‘take
meeting in the weekend that Mr Najib was not a all possible
Putrajaya last suspect in their investigation.
week — Fazry Ismail/EPA The Swiss authorities said the four steps to
cases involved a “systematic course of follow up
action carried out by means of complex
financial structures”. They added the and
cases related to five companies: Petro- collaborate’
Saudi, a Saudi Arabia-based oil group
with offices in the UK and Switzerland; Mohamed
SRC, a former subsidiary of 1MDB; Apandi Ali,
Genting and Tanjong, two Malaysian Malaysia
conglomerates involved in leisure and attorney-
property; and ADMIC, a joint venture general
between 1MDB and Aabar Investments,
which is controlled by Abu Dhabi’s
International Petroleum Investment
Company (known as Ipic).
Support from Abu Dhabi and Ipic has
been highly important for 1MDB’s busi-
ness activities. The partnership with
Abu Dhabi involved raising debt
intended to finance the development of
the Tun Razak Exchange, a new finan-
cial centre in the Malaysian capital
named after Mr Najib’s father.
The Swiss authorities did not say if the
companies that they named were under
investigation. PetroSaudi said it was not
India. Economy
Hollowed-out West Bengal
struggles to regain its vigour
generation and distribution. “That’s a
State hails progress in push to huge change.”
reverse 30 years of decline, but Whether the transformation contin-
ues is likely to depend on Mamata Ban-
entrepreneurs remain wary erjee, the populist chief minister and
leader of the Trinamool Congress party.
Less than a decade ago, while in oppo-
VICTOR MALLET — KOLKATA
sition, she led a campaign against a Tata
Until recently the billboard slogan Motors factory when the company
“Come to Bengal — Ride the Growth” wanted to make its low-cost Nano car in
that adorns the streets of Kolkata would West Bengal. Hounded by protests over
have seemed like a bad joke to the few the land acquired for the plant, Tata
big investors still active in the city and moved its project to business-friendly
its hinterland in West Bengal. Gujarat on the other side of the country.
Better known abroad as Calcutta, this This year, by contrast, Ms Banerjee
metropolis of 18m people was once the will vie for re-election in state polls
manufacturing and administrative hub partly by boasting of her success in
of British India. But a Maoist insurgency attracting jobs and investment. Among
and a hardline, Communist-led state her first moves after winning power in
government elected in the late 1970s 2011 was to appoint Mr Mitra to run the
ushered in three decades of industrial economy. He had previously headed
decline, urban decay and official hostil- one of India’s main business groups —
ity to capitalism. the Federation of Indian Chambers of
Investors, many of them commer- Commerce and Industry — and now
cially minded Marwaris originally from holds no less than six economic portfo-
western India, were plagued with death lios in the state government.
threats and strikes. The mood was so State tax collection has doubled in
sour, according to West Bengal finance four years, while spending on infra-
minister Amit Mitra, that 56,000 facto- structure has tripled and deficits are
ries shut down. Abhirup Sarkar, an eco- down, he says. The statistics show that
nomics professor, says the state’s share per capita income grew nearly 13 per
of all Indian manufacturing fell from 12 cent in real terms last year in West Ben-
per cent to just 2 per cent. gal, compared with an all-India increase
In the past three years, however, West of 6 per cent.
Bengal’s government says it has been
outperforming the Indian economy as a
whole. Even private entrepreneurs see
signs of a tentative industrial revival in a
state that is home to 91m people — more
than Germany — and is the main cargo
hub for north-east India and the inde-
pendent Himalayan nations of Nepal
and Bhutan.
“For the first time in many years — in
35 years — you see a genuinely serious
intent of the entire administration to
become attractive for investors and
investment,” says Sanjiv Goenka, chair-
man of RP-Sanjiv Goenka Group, a con- Mamata Banerjee: the populist chief
glomerate with interests in electricity minister will fight for re-election
Monday 1 February 2016
the subject of any probe and had not
been accused of any criminal conduct. It
denied any wrongdoing and said it
would co-operate fully with authorities,
adding that its relationship with 1MDB
had ceased in 2012. Genting and Tan-
jong did not immediately respond to a
request for comment. Ipic and ADMIC
could not be reached for comment.
1MDB declined to comment yesterday,
referring to a statement the day before
pledging to co-operate “with any lawful
authority and investigation”. 1MDB’s
president, Arul Kanda, said: “We have
nothing further to add at this point.”
Questions about 1MDB’s business
activities and its debt pile have con-
sumed Malaysian politics for months
and corroded public trust in Malaysia’s
government, prompting vast street pro-
tests last year.
But Malaysia has also become increas-
ingly important as a moderate Muslim
state in the fight against extremist
terrorists. Western countries are bol-
stering ties with Kuala Lumpur: last
year, Barack Obama became the first
serving US president to visit the country
since 1966.
Additional reporting by Ralph Atkins in
Zurich
Around his own constituency, Mr
Mitra says he found only one big factory
when he was elected, down from more
than 30 in the 1970s. Now there are half
a dozen making steel pipes and chemi-
cals and processing jute.
“I see a resurgence of industry,” he
says. “I see all the different ingredients
which will probably now allow West
Bengal’s economy to take off.”
Ms Banerjee hosted a business “sum-
mit” in Kolkata at the start of this year
that attracted investment promises of
$37bn in sectors ranging from mining
and infrastructure to industry, IT serv-
ices, real estate and tourism.
It is nevertheless an uphill battle to
persuade wary entrepreneurs that West
Bengal has changed. Several big inves-
tors in Kolkata complain that corrup-
tion persists, while the “goondas” or
thugs who used to enforce the will of the
Communists have simply switched
sides to Ms Banerjee’s party now that it
is in power.
Investors are still pressed to hire “the
right people” as employees or contrac-
tors to ensure the smooth running of
their enterprises, while Ms Banerjee still
feels the need to tailor her message to
the radical leftism espoused by many
Bengalis.
“The businessmen who are
entrenched in Calcutta, they are invest-
ing,” says one Marwari business owner
in the logistics sector. “But those from
outside are afraid.”
SK Birla, of the Birla conglomerate,
describes Ms Banerjee as “a well-mean-
ing lady” and says that after four years
in office she understands much of what
needs to be done to revive confidence.
“She’s now honestly trying very hard to
restore Bengal,” he says.
Even those who believe Kolkata and
West Bengal are starting to regain some
of their lost economic vigour warn that
it will take time. “I think there will be a
revival,” says Mr Sarkar. “But it cannot
be overnight.”
Monday 1 February 2016 ★ FINANCIAL TIMES 7

FT BIG READ. POLITICS AND US MEDIA

The Trump campaign has won support from across the conservative media, from talk radio hosts to Fox
News commentators. But some Republicans say what is good for broadcast figures is bad for the party.
By Matthew Garrahan

E
ver since it launched in 1996,
Fox News has prided itself on
its outsider credentials. Hosts
such as Bill O’Reilly, Sean
Hannity and Megyn Kelly
refer disdainfully to the “mainstream
media”, meaning outlets like the New
York Times and NBC News — a club
Roger Ailes, the channel’s chairman and
chief executive, believes is overwhelm-
ingly liberal. Fox News, he has sug-
gested, operates outside the main-
stream media and acts as a counter-
weight: he once told the Financial Times
the channel would “treat the conserva-
tive view with the same respect as we
have for the liberal view”.
It is a measure of 2016’s extraordinary
Republican primary race that the most
successful cable news network in Amer-
ica, and a favourite of conservative vot-
ers, is at war with Donald Trump.
About 60 per cent of its viewers iden- Clockwise from
tify as conservative and 88 per cent of top left: Roger
“consistent conservatives” trust Fox Ailes, Megyn
News’s output, according to Pew Kelly, Rupert
Research. But rather than assiduously Murdoch, Rush
court Fox News and its audience, the Limbaugh and
GOP frontrunner has attacked it as if it Laura Ingraham
were any other establishment institu- Getty Images; Reuters;
Dreamstime
tion in a presidential campaign that has
surfed a wave of populist anger.
Mr Trump boycotted last week’s pres-
idential debate — the final one before
today’s Iowa caucuses — after Fox
rejected his calls for Ms Kelly to be
replaced as a moderator. Then he called
a statement it released about his with-
drawal “a disgrace to good broadcasting
and journalism” and got into a Twitter
slanging match with Prince Alwaleed
bin Talal, the Saudi billionaire who is a
significant shareholder in Fox News’s
parent company, 21st Century Fox.

‘Viewers want to see

what stupid thing he’ll
say next. It doesn’t help
them make an informed
decision on the election’

Race for the ratings

With pillars of the Republican estab-
lishment including Jeb Bush and John
Kasich taking a beating in national polls,
the 2016 race is not following the tradi-
tional primary script. Neither is the way
the race is being covered by media out-
lets that are aimed at conservative vot-
ers.
“The party and the conservative
movement is going in a protectionist
and nativist direction,” says Stephen
Moore, a co-founder of the Committee
to Unleash Prosperity, a conservative
advocacy group. “So much of the con-
servative punditry out there is anti-free
trade, anti-immigration and anti-Rea-
gan. Trump has picked this up and it’s
being fed by the media and some of the
more demagogic pundits.”
Mr Trump has won support from
across the conservative media spec-
trum, from websites such as Breitbart to
Fox News commentators, including Mr
Hannity. But talk radio has been the
most vocal — and the most effective —
forum for populist candidates, with
hosts such as Rush Limbaugh leading
the drumbeat against the Republican
establishment.
“Talk radio is a rifle shot form of com-
munication with the base of the Repub-
lican party. It’s unfiltered,” says Craig
Shirley, a Ronald Reagan biographer
and a founder of Shirley & Banister Pub-
lic Affairs, which has represented many
conservative clients, including the
National Rifle Association and Tea
Party Patriots.
“Fox News has to remain a news
organisation, whereas talk radio is less
encumbered by that responsibility so
can be more partisan.” He points to divi-
sions among the most popular talk radio
hosts. “Mark Levin is for Ted Cruz yet
Laura Ingraham is for Donald Trump.
Rush [Limbaugh]has praised both.”
Candidates from the establishment
wing of the Republican party have
avoided talk radio, he adds. “[Jeb] Bush
doesn’t go on any of those shows. John
Kasich doesn’t go on them either, or
Marco Rubio. They will go on CNN or
Fox but they won’t go on talk radio. But
Trump always does.”
Talk radio’s saviour
There is little doubt that the Trump
campaign has attracted vast numbers of
disillusioned Americans and galvanised
television viewers. Ratings for the offi-
cial presidential debates on Fox News,
its sister network Fox Business, CNN
and MSNBC have broken records at a
time when the audiences watching non-
news channels are shrinking because of
cord-cutting — the cancellation of
pay-TV subscriptions in favour of
cheaper online alternatives, such as
Netflix.
Talk radio suffers from similar prob-
lems. In 2009, there were 59.3m people
tuning into US talk stations at least once
a week, according to Nielsen, the
research company: by 2015, the number
had fallen to 49.8m. Annual advertising
revenues for news and talk stations fell
close to 7 per cent in 2014 to $1.4bn,
according to BIA/Kelsey, a media and
advertising research group — signifi-
cantly more than the 1.25 per cent
advertising fall that hit music stations.
News and talk “is not as strong as it
once was”, says Mark Fratrik, BIA/Kel-
sey’s chief economist, adding that con-
troversial comments from talk show
hosts and competition from other forms
of media have contributed to the slump.
“Talk radio as an industry has col-
lapsed [and] audiences have disinte-
grated,” says Christopher Ruddy, the
chief executive and editor-in-chief of
Newsmax Media, a conservative media
group. “The response of a lot of talk
radio hosts has been [to become] more
and more ideological and to focus on
some of these core themes.”
News/talk radio
Average weekly audience (m)
2009 10 11 12 13 14
Source: 2015 Nielsen Audio Today Report
Coverage
No need to spend on ads
when the airtime is free
Donald Trump’s reality television fame
and personal wealth, combined with
the amplification of new technology,
have made him a media force in his
own right.
The Republican frontrunner only
began broadcasting television
advertisements — typically the
hallmark of a US campaign — this
month, with just weeks to go until the
Iowa caucuses and New Hampshire
primary. His campaign said it would
spend $2m a week on TV airtime in
the two states. “I don’t know if I need
Hosts have stoked populist fires such
as illegal immigration. “Talk radio has
been focusing on issues like deportation
of immigrants,” adds Mr Ruddy, refer-
ring to one of Mr Trump’s most popular
and recurring campaign themes. “We
can’t deport 11m immigrants and it’s
crazy politically — we can’t win without
[Hispanic voters],” Mr Ruddy says.
Alienating Hispanic voters might be
bad politics come the presidential elec-
tion in November but, for now, anything
associated with the Trump campaign
generates ratings — which for talk radio
companies is good for business.
“I’m not so sure these companies care
about losing the general election,” says
one prominent GOP fundraiser. “As far
as their business models are concerned
they are strong, if not stronger, when
they are part of the bitter opposition.”
Media creation
In a party riven with division between
establishment grandees and Tea Party
activists, who better than a popular tele-
vision star to unite its warring factions?
“He is the ultimate creation of the media
60 as the first reality TV candidate to run
for president,” says Mr Moore.
Television is Mr Trump’s natural
55 forum — he was the celebrity boss on
The Apprentice for more than a decade.
“He’s a great communicator,” says Mr
50 Ruddy. He is also a savvy user of social
media, using Twitter to respond to per-
ceived slights from the media, ranging
45 from Ms Kelly at Fox News to the
National Review, the conservative mag-
15 azine that published an anti-Trump
cover story with contributions from a
range of heavy-hitters. He responded in
it, but I don’t want to take any chances,”
Mr Trump said.
For most of his presidential run, Mr
Trump has preferred to save his
advertising money and rely on the
seemingly insatiable appetite of the news
media and social networks to rally
supporters, boast about his standings in
the polls and sling insults at his fellow
candidates and the traditional media.
Whether online, on TV or in print, US
news outlets have consistently devoted
more coverage to Mr Trump than any
other candidate, according to MediaMiser,
a media monitoring group. His
appearances on debates hosted by Fox
News, CNBC, CNN and Fox Business
Network have all drawn record audiences
for those TV channels.
He regularly appears on news
a series of tweets, saying the magazine
was “dying”, “failing” and “over”.
He does not limit his criticism to con-
servative media outlets. “The tax scam
Washington Post does among the most
inaccurate stories of all,” he tweeted last
week, in response to an article in the
newspaper, now owned by fellow bil-
lionaire Jeff Bezos, the Amazon chief
executive. “Really dishonest reporting.”
Critical articles in liberal publications
only serve to help the Trump campaign,
says Mr Ruddy. “The liberal media
appears to be very much against him
[and] the grass roots are reacting to that
by coming to his support. It’s not really
‘He controls the media
when he’s not on it. He
controls the media when
he is. He controls the
media when he’s asleep’
about what he believes but that he is
being attacked by liberals which means
he must be good.”
Mr Trump’s boycott of the Fox News
debate initially struck many as detri-
mental to his campaign. But people who
have followed him closely hailed it as a
sign of strength.
“I heard people on Fox last night talk-
ing about this. ‘Who does he think he is?
He can’t control the media,’” Mr Lim-
baugh, talk radio’s biggest star for more
than a decade, told his listeners last
week. “I’ve got news for you: he is con-
trolling the media, and it’s his objective.
programmes, tweets to alert his followers
to tune in and crows afterwards about the
large audiences he draws.
Even while feuding with Fox News and
pulling out of the latest Republican
debate last week, Mr Trump did not pass
up the opportunity to appear on the
network’s O’Reilly Factor on Wednesday
night.
Online, Mr Trump relies on a large
social media following — more than 12m
combined across Twitter, Facebook and
Instagram — to bypass established media
altogether. His messages are echoed by a
smaller subset of dedicated fans who
regularly tweet praise of the candidate
and insults at his critics.
As Mr Trump escalated his dispute last
week with Fox News presenter Megyn
Kelly, his supporters followed suit.
He controls the media when he’s not on
it. He controls the media when he is on
it. He controls the media when he’s
asleep. Nobody else has been able to do
anything like this short of the Kennedys,
and they’re pikers compared to the way
Trump is doing this.”
Frontrunner advantage
For his rivals the media’s relentless
focus on the frontrunner has made it
difficult for other candidates to break
through. George Pataki, the former gov-
ernor of New York who ran a shortlived
campaign for the 2016 Republican nom-
ination, called the race “the weirdest
election campaign I’ve ever been
involved in”.
Mr Pataki mentions a report that sug-
gests the Trump campaign received 50
per cent of daily media mentions for all
candidates, Democrat or Republican.
“That can’t be about seeking to learn
which candidates have the best experi-
ence and vision on the issues,” he says.
“It’s all about ratings because they have
Trump on and there’s a viewer frenzy to
see what stupid thing he’ll say next.
That doesn’t help viewers make an
informed decision about the election.”
If the success of the Trump campaign
has exposed new faultlines in the
Republican party it may have also
changed how campaigns use the media.
The fragmentation of the media indus-
try and the growth of conservative-lean-
ing websites and digital operations have
helped, not hindered, Mr Trump
because he can bypass traditional gate-
keepers to get his message out. “Now,
you can get your news from a thousand
different places,” Mr Moore says.
According to an analysis by the
website Vocativ, “other than Kelly
herself, ‘Trump’ was the most-
mentioned name in all of the Twitter
and Facebook posts directed at the
Fox News host since Tuesday
morning”.
Mr Trump frequently returns the
favour to his admirers, retweeting
messages of support even
from accounts that have
expressed racist
and neo-Nazi
ideologies.
Shannon
Bond
War footing Donald Trump is at war
with Fox News, popular with the same
conservative voters who back him
Talking loud Talk radio has been the
most effective forum for populist
candidates such as Mr Trump
Election boost? Supporters hailed his
boycott of the Fox News presidential
debate as a sign of strength
For a company like Fox News and the
liberal leaning MSNBC channel the
“polarised base is the key”, says Mr
Ruddy. “As the old saying goes: in niches
there are riches.”
If the Republican party continues to
fracture will those niches shrink? There
is no sign of that happening yet. Fox
News is the most lucrative unit in
Rupert Murdoch’s 21st Century Fox,
generating more than $1bn in annual
operating profits, according to Moffet-
tNathanson, a research firm, and has
capitalised on the drama surrounding
Mr Trump’s withdrawal from the Fox
debate. The feud was covered relent-
lessly by newspapers, websites and on
TV by rival stations, giving candidate
and network plenty of free publicity.
Boycotting the final debate did not
hurt Mr Trump. CNN screened his alter-
native event, staged to raise money for
veterans’ causes, and his name topped
Google searches for GOP candidates
that evening. Fox News, meanwhile,
pulled in around 13m viewers, more
than the previous debate, which was
hosted by its sister network, Fox Busi-
ness, but well shy of the 24m who tuned
in to watch the candidates — including
Mr Trump — last summer.
If he fails to win his party’s nomina-
tion, he would be wise to consider his
media options, such has been the
impact of his campaign.
“Trump is as big a force as any media
platform,” says Dan Senor, a former sen-
ior adviser to Mitt Romney and Paul
Ryan, who ran on the Republican ticket
in 2012.
“If he loses the race then,
from a business perspective,
what he should do is create
his own conservative news
channel. It would be incred-
ibly popular.”
8 ★
MONDAY 1 FEBRUARY 2016
Putin wants to bomb in
Syria and talk in Geneva
Russia is using peace summit in Switzerland as a smokescreen for war
As the UN scrambled last week to shep-
herd Syria’s warring parties to talks in
Geneva on a transition out of the coun-
try’s civil war — after meetings con-
vened by the US and Russia last year in
Vienna — the Russian air force all but
razed al-Sheikh Maskin, killing hun-
dreds of civilians as well as rebel fight-
ers. This strategic town in southern
Syria was held by mainstream rebels
backed by the west. There could be no
clearer illustration of Vladimir Putin’s
role as a spoiler in the Syrian conflict.
Only under duress has the Syrian
rebel contingent finally arrived at the
Geneva talks with the Russian-backed
regime of Bashar al-Assad, demanding
an end to the bombardments and
blockades starving civilians in rebel
enclaves. Moscow may be talking about
the threat from Isis, but its forces in
Syria have been targeting non-Isis
rebels that had been threatening the
Assads’ rump state until Russian forces
arrived last autumn. Mr Putin is talk-
ing out of both sides of his mouth.
Ever since the Russian president
stormed into Syria, his air force and
ground allies — mainly Iran-trained
and led militias — have set about eradi-
cating every force that exists between
the Assad regime and Isis, which sel-
dom attack each other. Last week, too,
the regime reclaimed Rabiya, a rebel
town near its northern heartland in
Latakia, after it was first reduced to
rubble by Russian air strikes. Anything
Russian diplomats say in Geneva
should be seen in that light.
There are huge obstacles to over-
come: from the future of the Assad
clan; to which groups should be
excluded apart, obviously, from Isis
and the al-Qaeda affiliate, Jabhat al-
Nusra. But Moscow has lined up behind
the Assad regime and is busily elimi-
nating all alternatives to it except Isis.
That was also clearly President Assad’s
calculation in 2011 when, months into
WHO is right to move
swiftly to tackle Zika
Virus is not the new Ebola crisis but it is still an emergency
As the Ebola epidemic fizzles out in
west Africa, after killing more than
11,000 people, international alarms are
sounding about another emerging
tropical disease. Zika is “spreading
explosively” through the Americas,
according to the World Health Organi-
sation, which will decide today
whether to declare a public health
emergency. Experts say that as many
as 4m people could be infected this
year by the mosquito-borne virus,
which is linked to brain damage in
unborn children.
Spurred by justified criticism that
failure to act quickly against Ebola cost
thousands of African lives, the WHO
and other global health bodies are
scrambling to mobilise resources in
central and South America to fight the
virus. Decisive action is essential now,
before experts are clear about the scale
of the Zika threat, because the worst
scenario of an epidemic that leaves tens
of thousands of babies with microceph-
aly — very small brains and deformed
heads — would be so awful. If we are
fortunate and Zika turns out to be less
dangerous than feared, then no one
should look back next year with the
benefit of hindsight and accuse the
world of overreacting. Timely response
to an emerging infection will always
involve risk analysis based on imper-
fect information.
While lessons can be learned from
the world’s last public health emer-
gency, we should not regard Zika as the
new Ebola. It is a very different disease
requiring a different response. While
the Ebola virus spreads between people
and causes a virulent fever, Zika is
transmitted by Aedes aegypti mosqui-
toes and, apart from microcephaly, the
symptoms are usually mild.
This time we do not need the brave
army of health workers who tended
dying Ebola patients in west Africa,
traced their contacts and made sure
what began as a civic uprising against
the 40-year tyranny of his family’s
rule, he emptied his jails of jihadis. Mr
Putin’s insistence the Assad regime is a
secular bulwark against Islamist
extremism is hypocritical posturing.
Russia is not the only spoiler in Syria.
Turkey, more concerned with imped-
ing the advance across northern Syria
of Syrian Kurdish militia — effective
fighters against Isis backed by US air
strikes — has vetoed their presence in
Geneva. Saudi Arabia is exercised more
by Iran-backed Shia gains in the region
than the threat of Isis. Iran’s revolution-
ary guards and its proxy paramilitaries
such as Lebanon’s Hizbollah kept the
Assads in place until Russia arrived.
There are real questions about the
role of Islamist rebel forces such as
Jaish al-Islam, a Saudi client reflecting
the kingdom’s Wahhabi bigotry
towards minorities such as the Shia, or
Ahrar al-Sham, backed by Turkey.
Moscow, Damascus and Tehran say
these are wolves who have donned
sheep’s clothing to attract western
backing. Yet if Moscow and the Assad
regime continue along this bloody
path, there will be nothing left in Syria
except wolves — greatly to Isis’s advan-
tage. Sheikh Maskin, for example, was
defended by the rebel Southern Front,
recognised as legitimate opposition not
just by the west but Russia, which also
endorsed UN Security Council resolu-
tion 2254 prohibiting the targeting of
civilians. Instead, by decimating liber-
ated areas it is adding to the waves of
refugees engulfing Europe.
Mr Putin is treating Geneva as a
smokescreen behind which to keep up
his offensive. Instead of bullying rebels
to attend the talks, the US and its allies
should back their demand that Russia
and the regime cease bombing the Syr-
ian people. Geneva will otherwise be
the venue for a third failure to end this
pitiless war.
they were buried safely. Instead we
need an army of mosquito fighters to
eliminate the little pools of water
where the insects breed — even in the
trays on which pot plants sit.
Insecticides and fumigation have a
role to play too. So does the more futur-
istic approach, currently undergoing
field trials, of fighting Aedes aegypti by
releasing genetically modified mosqui-
toes to prevent the wild insects breed-
ing. Success would help the battle not
only against Zika but also against other
mosquito-borne diseases, particularly
dengue, which is caused by a closely
related virus.
Another high priority is research,
which was sadly lacking in the early
stages of the Ebola epidemic. We
urgently need proof of a causative link
between Zika infection and microceph-
aly and then to know how the virus
damages the brain of a growing foetus,
whether it acts on its own or another
factor is responsible. Scientists must
cast aside their natural tendency to
hoard data until they have published
results — and share everything from
the beginning according to internation-
ally agreed protocols.
Diagnostics, antiviral drugs and a
Zika vaccine are all essential too. Fortu-
nately the drugs industry is moving
into action, with several companies
beginning work on anti-Zika products.
At the same time policymakers have
to advise the public how to respond.
Advice for women who are pregnant or
planning to become pregnant to avoid
travel to the worst affected countries is
sensible. But it is too soon to give rec-
ommendations about visiting Brazil for
the Olympics. If the authorities suc-
ceed in their battle to rid the Rio region
of Aedes aegypti mosquitoes, taking
advantage of cooler conditions during
the southern winter, travel restrictions
may be unnecessary. We wish them
every success.
FINANCIAL TIMES
Humans can take any innovation and turn it into a weapon
Sir, Luciano Floridi brings common
sense to the debate about artificial
intelligence’s threat to humans
(“Humans have nothing to fear from
intelligent machines”, January 26).
However, the main argument should
not be whether machines can achieve
artificial intelligence. They may
some day, and the fact that they
are far from it for the moment is
no proof that anxieties are
“scientifically unjustified”. We have a
hard time understanding what human
or animal intelligence is, and are
notoriously weak in predicting how
As long as we have asset
markets and a banking
system, crises are a risk
Sir, Regarding Andrew Hill’s article
“Bonuses are bad for bankers and even
worse for banks” (January 26): rather
than take it as axiomatic that
individual bankers who in some way
lacked “moral fibre” or
“trustworthiness” were responsible for
the credit crunch, I would suggest
comparing this credit-fuelled burst
bubble to the score (at least) that have
preceded it in various regions over the
past 150 years or so. They share many
hallmarks: long periods of fairly steady
asset growth (driven by some genuine
underlying trends, and some factors of
luck) eventually inspire over-
optimistic credit provision from banks.
When the bubble bursts, banks have to
write down loans, with consequences
ranging from recapitalisation to
multiple bank insolvencies. Many more
detailed commonalities exist.
Such events span history and
geography, and a great range of
different banking cultures. The latest
crisis was certainly large and global,
but nonetheless bore all the classic
hallmarks. As long as we have both
asset markets and a banking system,
such crises are a risk. And while there
are many regulatory lessons to be
learned, we still must ultimately decide
whether the pre-crisis system was
better or worse than one damped by
hamstrung banks or more centrally
planned economies.
With proper historical context, we
can surely see that it misses the point
to focus on the individual
trustworthiness of bankers. Human
beings are what they are; what they
always have been and always will be.
Andy Kent
London NW3, UK
A hotel business but
without the burdens
Sir, John Kay is right about his 18th-
century namesake (“What the other
John Kay taught Uber about
innovation”, January 27). Perhaps there
is no better illustration of
protectionism’s ills than Frédéric
Bastiat’s Candlemakers’ Petition of
1845. The taxi industry has indeed
developed a bunker mentality as a
response to technologically driven
cabs.
That said, by referring to Airbnb
Professor Kay implies that the hotel
industry is analogous to the Luddites.
Nothing could be farther from the
truth. Airbnb suggests that virtually all
regulations, particularly in dense
conurbations, are archaic and that it is
A quarterback’s
view of a flawed
superpower
Book review
By Gary Silverman
The Game’s Not OOver:
In Defense of Football
By Gregg Easterbrook
(Public Affairs, £17.65/$24.99)
Letters
technology develops; we must assume
therefore that artificial intelligence is a
distinct possibility some time in the
future.
The more important discussion is
whether, if machines did achieve
intelligence, this would constitute a
threat to humans. Most pessimistic
views about such a threat assume that
once machines achieve intelligence,
they will see humans as challengers
and will want to control, or worse,
destroy them (the thesis behind the
Terminator film series and many other
science fiction stories).
The bubbles of the past 150 years share many hallmarks — Dreamstime
a technology-based company. Perhaps
a regimen that includes property,
mortgage and transfer taxes at the
same hugely discounted rates, light to
non-existent fire codes, no disabled
access requirements, de minimis
insurance coverage and lower-paid
contract workers instead of employees
is what is needed. Unsurprisingly, it has
never suggested that the same lack of
rules apply to regular hotels as a way of
levelling the playing field.
Airbnb’s technology is no different to
that of any hotel company, big or small,
in terms of its booking engine or web
platform, with none of the burdens of
regulations. Most tellingly, when
something goes drastically awry
Airbnb’s response has been to delist the
offending lister while terming those
incidents as rare.
Prof Kay may like to take a look at
Airpooler and Flytenow, the flight-
sharing companies that were shut
down by the US’s Federal Aviation
Administration. The reasons were
obvious. Safety, insurance and training
for private pilots is markedly lower
than that for commercial pilots and
planes. Speaking as a hotelier, private
pilot and libertarian, to me the
foregoing seems self-evident.
Vijay Dandapani
Chairman,
Hotel Association of New York City, US
Misinformation that
determines dividends
Sir, Tim Marrable (Letters, January 26)
asserts that I misled readers when I
claimed (Letters, January 21) that
Japanese companies are required to
publish the same profits in their
accounts as in their tax returns. If I am
wrong, my error is shared by the senior
official of the Ministry of Economy,
Trade and Industry with whom I
checked this point. I also know from
discussions that this view is understood
to be correct by those at the highest
level, both past and present, in the
Bank of Japan.
If Japan’s senior bureaucrats and I
are correct, then it is irrelevant in the
In the history of the world, there have
been few books quite like this one by
Gregg Easterbrook. In a mere 222
pages, including the index, he touches
on issues ranging from the legitimacy
of sociology as a science and the
implications of neoclassical economic
theory for hotel taxes to the relative
progress of orthopaedics and
neurology and the best nickname for
the city of Chicago, while also offering
up one haiku each for all 32 teams of
the US National Football League.
His main subject is the importance
to US society of the sport Americans
call football — the violent game played
in helmets and pads by supersized
young men, some of them better-
known for hitting their domestic
partners than their opponents.
Americans can’t resist the spectacle, as
the massive television audience for
this Sunday’s NFL championship —
the Super Bowl — will surely attest,
and the world deserves an
explanation.
The problem with Easterbrook’s
work is that only folks with a thorough
grounding in football esoterica and
related Americana are likely to catch
his various drifts. This is a book for
people who will understand a haiku
such as his Bruce Springsteen-meets-
Joe Pisarcik at the Meadowlands
mash-up: “Set, hut, Hackensack:
/‘Somewhere in the swamps of
Jersey.’/New Jersey Giants.”
Easterbrook, a former fellow of
Washington’s Brookings Institution,
who has written 10 books, surveys the
US scene in the manner of a
This, however, is a very
anthropomorphic view and forgets that
humans and other animals are
products of millions of years of
evolution where a drive for survival,
and competition for limited resources,
were the main factors that shaped us.
Machines will not inherit survival
instincts just because they achieve
intelligence; they will still be, well,
machines, even if they will have the
ability to deal with complex
information, and possibly complex
physical environments.
The real threat is still humans, as
context of Japan’s excess corporate
savings whether a minority of
companies also publish IFRS accounts.
It is the misinformation contained in
the tax accounts that largely
determines dividends, this year’s
bonuses and next year’s wages. It is
most unlikely that a reduction in
depreciation allowances, combined
with a tax in the standard rate of
corporation tax, would not lead to a
reduction in corporate savings, which
is an essential step to reducing Japan’s
fiscal deficit.
Andrew Smithers
Founder, Smithers & Co,
London W8, UK
Facts dispel stubborn
myths about ethanol
Sir, David J Melvin (Letters, January
22) suggests that ethanol in petrol is
causing big problems.
When E5 was introduced E10
became a risk and now E10 is an
accepted fuel standard E15 seems to be
the next problem. In Finland, where 60
per cent of the petrol is blended with
10 per cent ethanol the well-known
and respected technical research
institute VTT concluded after thorough
research that E10 does not result in
noticeable increase of fuel
consumption. Indeed, engine
performance increases and fuel
combustion is more efficient. Contrary
to a diesel engine, ethanol doesn’t
require any fumbling around with
software to let the engine perform
better and emit less.
The myths about ethanol use are
stubborn but are dispelled by the facts.
When in 2011 Germany introduced
E10, both the oil and car industries
were crying foul over the measure.
They warned that the government
would regret the measure the day that
many Germans would face failures
with their car engines. There has never
been reported a single engine failure
due to E10 use according to ADAC, the
German automobile club.
Rob Vierhout
Hoeilaart, Belgium
quarterback looking over an opposing
defence. He notices a lot of things at
once, which results in more than 100
footnoted asides. He overwhelms the
reader, which is too bad, because his
apology for the sport makes some
interesting points.
His central insight is that the game
is an irresistible morality tale for
Americans trying to make sense of our
place in the world. American football
is “too loud, too ferocious, too
expensive, too subsidized, too
superficial, too self-aggrandizing, too
hypocritical, too protected by political
favours, just too much”. All of which,
in his view, makes the sport ideal
viewing for “a muscle-bound
superpower that’s never sure how to
behave”.
“In the structure of football, we see a
reflection of America’s incredible
complexity and power,” he writes.
“When we watch the NFL, the most
muscular of sports, we are watching a
game in which the players wrestle
with the proper exercise of their
strength. The NFL is an athletic
interpretation of a core issue facing
the United States: how to use
incredible power with self-restraint.”
The results are often no prettier on
the gridiron (as Americans call their
football pitch) than on the battlefield.
The NFL, Easterbrook argues, is run
by fat-cat club owners so craven that
they manage to solicit millions of
dollars from the government to stage
patriotic displays during games. Roger
Goodell, the league’s commissioner, he
writes, is the owners’ highly paid
Monday 1 February 2016
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
Professor Floridi rightly points out.
Humans have proved that they can
take any innovation, any technical
advancement, and turn it into a
weapon. They will use intelligent
machines against other humans as
surely as they have used knives,
gunpowder, nuclear energy and
computer viruses.
The anxiety should not be about the
intelligent machines, but about said
machines in the hands of the wrong
humans.
Jem Eskenazi
London N3, UK
Abe must press for
more women on
company boards
Sir, As one of the few foreign
independent directors sitting on a
Japanese board, I can confirm that
waiting for change in corporate Japan
requires considerable patience (“Japan
“
needs to make new governance rules
work”, editorial, January 27). While
you correctly identify that there has
been some progress on appointing
independent directors, there was one
crucial component of good boards that
you overlooked — the role of women.
Before the introduction of the
corporate governance code last year,
fewer than 4 per cent of board seats at
Japan’s largest companies were held by
women.
If Prime Minister Shinzo Abe is to
raise Japan’s corporate governance
standards to the level of other
developed economies, he must
consider applying political pressure,
and targets, for female board
representation, as we have done in the
UK.
Lady Barbara Judge
Chairman,
Institute of Directors, UK
Suspicious of ‘light touch’
— and with good reason
Sir, Your useful reporting on the
European Commission’s proposals to
tighten regulation of vehicles (“EU
looks to strengthen auto industry
oversight”, January 28) notes, not
surprisingly, that “vehicle testing
laboratories are paid by carmakers,
creating incentives for the test centres
to go easy on manufacturers”.
There is a direct parallel between the
VW — and, implicitly, European — car
scandal and the US securities rating
scandal in which the top rating
agencies were, and are, paid by the
financial companies issuing the
securities being rated.
Is there not good reason why I, as an
owner of one of the offending vehicles
and as a former investor in grossly
over-rated securities, should have
doubts about “light touch” regulatory
regimes? Growing evidence suggests
that it would be more accurate to
describe me as a “soft touch” for the
automotive and finance industries.
J Paul Horne
Alexandria, VA, US
COMMENT ON FT.COM
Gavyn Davies
Bank of Japan tries another flavour of
quantitative easing
blogs.ft.com/gavyndavies
“water boy”, who reflects “what US
society seems to want from leaders —
to see them squirm in public, hear
them give lip service to reform, then
go back to business as usual”.
The trickiest question for
Easterbrook involves the number of
brain injuries suffered by American
football players. He argues that
parents should bar boys from full-
contact sport until they are in middle
school, citing scientific evidence that
former players who started out in pads
before age 12 were more likely to
suffer cognitive decay than those who
did not.
But Easterbrook grows relatively
sanguine about older sportsmen.
Despite presenting evidence that
high-school football players suffer
148,000 concussions a year, he makes
the case that operating at this level
teaches such virtues as self-discipline.
It “can be a lot of fun”, too, he writes.
“Life goes by so quickly — fun
matters.”
In the NFL, Easterbrook argues,
rising awareness of concussion risks
has led to rule changes — such as
penalties for helmet-to-helmet hits —
that make the game safer. He
maintains that fans can now enjoy
professional football without guilt.
“The games are fabulous; the
players know the risks and are well
compensated,” he writes. “Watch
away, without regrets.”
After all, it’s the American way.
The writer is US national editor of the
Financial Times
Monday 1 February 2016
Athens and Rome expose Europe’s greatest faultlines
europe
Wolfgang
Münchau
H
ow should we think about
systemic risk in Europe
today? The EU has been
moderately successful at
crisis management. But
even its ability to muddle through is
reaching breaking point when, as now,
several crises intersect at once.
You can see the problem most clearly
in Greece — a country battling both an
economic meltdown and a refugee crisis
— with not much help from the rest of
the EU. Last week when the European
Commission issued a report criticising
Athens over its failure to control its bor-
ders, Macedonia took the unilateral
decision to close its southern crossing
with Greece — leaving thousands of ref-
ugees in transit on the Greek side of the
border. In Athens, meanwhile, parlia-
ment discussed pension reform, forced
Trump’s
middle-finger
appeal
AMERICA
Edward
Luce
I
n India, the world’s largest democ-
racy, many voters are illiterate so
parties are identified by symbols.
Congress is the palm of the hand,
the Bharatiya Janata party is the
lotus, and so on. Voters who cannot read
put their thumbprint against their
party’s image.
I have often wondered what symbol
would best capture Donald Trump’s
message. Democrats would have the
rainbow to express the diversity of their
coalition. Traditional Republicans
would have the American eagle to
denote their patriotism — or perhaps a
likeness of Ronald Reagan. Mr Trump’s
symbol would be the middle finger to
express what his fans think about poli-
tics. The Donald is what they think
about Washington. No other visual
would do.
Middle America’s blind anger has
become the standard explanation of the
2016 election. Blue collar voters are livid
and feeling betrayed. Mr Trump is their
reckless way of venting it. But this may
be as misleading as the earlier discarded
pieces of conventional wisdom. There is
nothing whimsical about Mr Trump’s
fan base. Those who support him are
sending a calculated message of con-
OPINION
Eswar
Prasad
I
n yet another sign of the strange
times we live in, Japan is calling for
China to impose controls to stem
capital outflows that are eroding
the value of the renminbi. Authori-
tative voices have endorsed this view.
This fast-developing orthodoxy that
capital controls could give China some
breathing room is wrong. Controls
would make things worse, not better.
China certainly has a problem on its
hands. In August 2015, the People’s
Bank of China ostensibly freed the ren-
minbi’s value to be more freely deter-
mined by market forces. Unfortunately,
it got off on the wrong foot, combining a
well-intentioned move towards greater
exchange rate flexibility with a 2 per
cent devaluation relative to the dollar.
Financial markets focused on the deval-
uation, interpreting it as a desperate
measure to shore up a stalling economy.
upon the country by their creditors as a
quid pro quo for continued financial life
support.
Greece may be the starkest example,
but it is not the only country facing over-
lapping crises. It is not even the most
important one facing this dilemma.
That would be Italy. While Rome’s prob-
lems are different from those of Greece,
the country’s long-term sustainability in
the eurozone is just as uncertain, unless
you believe that its economic perform-
ance will miraculously improve when
there is no reason why it should.
Italy was overwhelmed by the
increase of refugees from north Africa
last year. On top of that it faces unre-
solved economic problems — no pro-
ductivity growth for 15 years; a large
stock of public sector debt that leaves
the government with virtually no fiscal
room for manoeuvre; and a banking sys-
tem with €200bn in non-performing
loans, plus another €150bn of debt clas-
sified as troubled. Then consider that its
three main opposition parties have, at
one time or another, all questioned the
country’s membership of the eurozone.
Even if none of them look like coming to
power in the near future, it is clear that
tempt for career politicians. The more
Mr Trump offends their sensibilities —
an hourly event — the more effective he
is. “Even Trump is better than you,”
they are saying. “That’s the low regard
we hold you in.”
It is often pointed out that Mr Trump
draws an outsize share of his support
from those without college degrees. This
is true. But his lead is so big that he also
attracts the support of more college-ed-
ucated Republicans than any of the
establishment candidates. We do not
often hear about that.
Foreigners, particularly from Europe,
often imagine middle America as seeth-
ing with nativists who can wield a gun
but barely hold a knife and fork. It is a
misleading caricature. There is plenty of
A victory for The Donald
would be a loud distress
signal, but would
government grind to a halt?
racism in the US (as there is in Europe).
But it is distributed more evenly across
the spectrum than is supposed. Mr
Trump is gaining a larger share than any
other Republican candidate of inde-
pendent and Democratic supporters.
Nor are his fans necessarily racist. Some
clearly are — and Mr Trump has shame-
lessly pandered to those sensibilities.
But I have met few Trump supporters
who wear it on their sleeve. Most are
opposed to giving amnesty to illegal
Capital controls will not cure China’s ills
The problem was compounded by
botched communications.
Since August, China has lost about
$320bn of foreign exchange reserves in
trying to prevent its currency from fall-
ing too fast. This has intensified a trend
of reserve losses since mid-2015 as
restrictions on outflows have been
eased, allowing households, corpora-
tions and institutional investors to seek
portfolio diversification through invest-
ments abroad.
Japan has good reason to worry about
a falling renminbi. The success of the
Bank of Japan’s monetary stimulus in
raising inflation and boosting growth
depends on a weaker yen stimulating
exports. A falling renminbi vitiates that
goal and the ensuing investor concerns
are driving safe haven inflows to Japan,
pushing up the yen. But the suggested
remedy for the renminbi could end up
worsening these problems.
Japan’s experience with capital
account liberalisation (easing restric-
tions on capital flows) holds some posi-
tive lessons and a few cautionary ones
for China. Opening up the capital
account facilitated Japan’s integration
★ FINANCIAL TIMES
Comment
Italy only has a limited amount of time
to fix its multiple problems.
The struggle to repair the banking
system is a good example of just how big
the task is. Last week, the Italian gov-
ernment and the European Commission
agreed a convoluted scheme to relieve
the Italian banking system of some of
these toxic assets. The plan has adopted
all the dirty tricks of modern finance,
including the infamous credit default
Italy’s long-term
sustainability in the
eurozone is just as
uncertain as that of Greece
swap, a financial product that mimics
insurance against default on a bond,
which was particularly popular during
the pre-2007 credit bubble. These
instruments allow investors to hedge
against default risk. But more often than
not, their true purpose is to conceal
information, to fool investors, or to cir-
cumvent regulatory restrictions.
There are no such evil motivations
Matt Kenyon
immigrants but few would close Amer-
ica’s doors to further non-white legal
newcomers.
What most Trump supporters have in
common is a loathing for hypocrisy.
Their candidate has dispensed with the
usual rule book. He does not solicit
donations. He boasts that he does not
need them. Indeed, he also gladly
admits to having made donations to
candidates of all stripes for business rea-
sons. It buys their goodwill. The Donald,
on the other hand, can never “be bought
and paid for”.
Other candidates send mass emails
addressing you as “friend” or “Hey Ed”
and promising to have a “conversation”
with you. Then they hit you up for cash.
By the standards of the mass mailing
era, their methods are slick. But they are
also patronising. In a country of 320m
people, you are no likelier to have a con-
versation with Hillary Clinton than you
are with Abraham Lincoln. Candidates
routinely deny they will be influenced
by their wealthy backers. Mr Trump, on
the other hand, simply boasts about
how much money he has. “It’s nice. I
into global trade and finance, and also
helped in developing and deepening
domestic financial markets. But it also
made exchange rate management
harder. An open capital account without
a flexible, market-determined exchange
rate complicates monetary policy.
In an ideal world, the correct
The government should
make a real commitment
to the supply-side reforms
it has long talked about
sequence is clear — fix financial mar-
kets, free up the exchange rate, then
open up the capital account. In a less
than ideal world, an opportunistic
approach to reforms may be the best
available option.
The PBoC wisely used the goal of ele-
vating the renminbi into the IMF’s bas-
ket of reserve currencies by the end of
2015 as a tool for opening up the capital
account, freeing up the exchange rate
and undertaking a number of financial
behind this structure in the case of Italy,
but the idea that the country’s solvency
crisis could be fixed through financial
trickery is, of course, absurd. For me the
scheme is less a symbol of devious finan-
cial engineering, than a sign of despera-
tion. There was, however, little else the
Italians could have done under the EU’s
tight rules on state aid.
The European Commission previ-
ously blocked a proposal to create a clas-
sic “bad bank”, a state-owned company
that would have bought the toxic debt
directly from the commercial banks —
thus giving them immediate relief.
Doing so would have constituted illegal
state aid under European law. The goal
of the CDS scheme is more modest. It
will bring no direct relief, but will help
create an efficient market to sell some of
this toxic debt over time. We should
therefore expect the Italian banking sys-
tem, and the wider economy, to con-
tinue to struggle.
I shudder to think how Italy would
cope with an additional shock of the
kind Greece is experiencing after the
Macedonian decision — a sudden inflow
of immigrants from Syria. This might
occur, for example, through further bor-
don’t need anybody’s money. I’m using
my own money,” he said at his campaign
launch. “I’m not using lobbyists, I’m not
using donors. I don’t care. I’m really
rich.” He may be a rogue, say fans, but
he is refreshingly candid.
There are two more assumptions
about Mr Trump that are still held dear
— that he would lose a general election,
and that he would make a disastrous
president. It would be unwise to bet on
the first. Unlike the career Republicans,
Mr Trump has cross-party appeal. True,
his negative approval ratings are higher
than any other potential nominee at
minus 27 points, according to Gallup.
Mrs Clinton’s negative approval is
minus four points. Mr Trump is the
most disliked figure in US politics. He is
also possibly the most intensely liked.
In a polarised era, the ability to get
out your vote matters more than an elu-
sive chase for the swing voter. If you add
Mr Trump’s high voter enthusiasm to
his knack for rebranding, it would be
rash to write off his prospects. If he won
the nomination, it is easy to imagine
him selecting a non-white woman as his
sector reforms. But the timing was less
than propitious as capital outflows for
the right reasons (portfolio diversifica-
tion) got mixed in with outflows fuelled
by concerns about the economy and
Beijing’s anti-corruption drive.
The endgame is clear. The PBoC will
eventually have to free up the exchange
rate rather than maintaining substan-
tial and costly intervention to keep its
value stable. In its own inimitable and
oblique way, the PBoC signalled in
December that markets ought to focus
on the renminbi’s value relative to a
trade-weighted basket of currencies of
China’s major trading partners.
Despite its best intentions, however,
the PBoC has painted itself into a corner.
It faces a challenge in allowing for more
currency flexibility in practice without
triggering substantial capital outflows
and a sharp currency depreciation.
Reversing the progress on capital
account opening through measures
designed to hinder outflows risks signal-
ling that the government is back to its
inconsistent approach to reforms.
There is a better exit strategy from the
PBoC’s current dilemma, however. It
der closures on the Balkan route, which
has been the preferred gateway for Syr-
ian refugees on their way to Germany.
Such a shift could see refugees divert via
the Adriatic Sea to Italy.
There are signs that Italy’s patience
with the EU and Germany, in particular,
is wearing thin. Matteo Renzi, prime
minister, has been openly attacking the
policies of the EU on energy, on Russia,
on the fiscal deficits, as well as German
dominance of the entire apparatus.
It is not the euro crisis alone that has
brought Italy to the brink of questioning
its position in the eurozone. It is a com-
bination of many crises and is likely to
gain more momentum from the Brexit
debate.
There is an element of bad luck in this.
Europe’s policy of muddling through, of
doing the minimum required, and hop-
ing to mop up the rubble later, might
even have worked if the refugees had
stayed at home. The EU’s mistake was
not to have chosen a path that would
lead to invariable ruin, but to render
itself defenceless against the next
unforeseen shock.
munchau@eurointelligence.com
running mate — perhaps Nikki Haley,
the Republican governor of South Caro-
lina, who is the child of Indian immi-
grants. Another terrorist attack would
feed his narrative. A third party bid by
Michael Bloomberg, the former mayor
of New York, would further boost his
chances by splitting the bicoastal elites.
What if the unthinkable happened?
How big a catastrophe would President
Donald Trump be? A Trump victory
would send a loud distress signal about
the health of US democracy. This is the
conventional wisdom to which I
strongly subscribe. By electing Trump,
America would be displaying its middle
finger to the world. It would also repudi-
ate much of what makes America
attractive. But would the wheels of gov-
ernment come to a halt? Would special
interests rewrite the tax laws and cap-
ture the regulators? Would gridlock par-
alyse Washington? Maybe so. But as Mr
Trump’s supporters point out, that has
already happened. Why not come clean
and admit it?
edward.luce@ft.com
will take a number of self-reinforcing
elements to stabilise market expecta-
tions and rebuild investor confidence.
First, a balanced mix of macroeco-
nomic policies to support growth. With
monetary policy constrained, fiscal pol-
icy could be used to boost growth in the
short run and help in longer-term eco-
nomic rebalancing. This requires judi-
cious tax cuts and increases in social
spending. Second, a redoubled commit-
ment to reforms. This would be an
excellent time for the government to
make a real commitment to some of the
supply-side reforms it has long talked
about. Third, a transparent communi-
cations strategy that makes clear what
the government’s short-term and long-
term plans are for currency market and
other financial sector reforms.
Capital controls are a seductive but
dangerous substitute for what China
really needs — strong and concerted
action to build confidence rather than
measures that sow more panic.
The writer is a professor at Cornell Univer-
sity and a senior fellow at the Brookings
Institution
9
A mobile merger
that threatens
healthy
competition
OPINION
Sharon
White
W
hat would Herbert Hoo-
ver, the pioneering US
president who excelled
at engineering and eco-
nomics, make of today’s
digital society? He would surely be
impressed by the range of affordable
devices we use each day, from smart-
phones to tablets. But I do not think he
would be surprised by the economic
forces that brought all this about.
Competition is the lifeblood of today’s
telecoms market, spurring innovation,
better coverage and fair prices. As Presi-
dent Hoover observed: “Competition is
not only the basis of protection to the
consumer, but is the incentive to
progress.”
To see that happening today, take the
UK mobile phones sector, where four
networks compete for customers. Con-
sumers have enjoyed innovative serv-
ices and pricing in recent years, from
unlimited internet data to free overseas
calls. UK prices are among the lowest in
Europe, with the cost of a typical pack-
age falling by two-thirds since 2003.
Ofcom, the UK communications regu-
lator, aims to maintain that progress
through competition. So we are con-
cerned that the smallest mobile net-
work, Three proposes to become the
biggest by acquiring its rival, O2. The
combined group would control more
than four in 10 mobile connections.
This follows a pattern of mobile merg-
ers in Austria, Ireland and Germany.
Like those countries, the UK would be
left with just three networks. Some
argue that operators must consolidate
in order to boost revenues, increase effi-
A combined Three/O2
would shift the balance of
power between networks
and independent retailers
ciency and widen their scale to invest.
But this is not a broken market. Last
year, UK mobile companies generated
£15bn of revenue. They have been
investing billions to roll out 4G technol-
ogy, while maintaining cash flow mar-
gins above 12 per cent. Competition, not
consolidation, has driven investment.
We have put those arguments to the
European Commission, which is review-
ing Three and O2’s proposals, and out-
lined particular concerns.
First, the deal could mean higher
prices for consumers and businesses. To
date, Three’s owner Hutchison has often
acted as a “disruptive” operator, suc-
cessfully challenging established play-
ers through innovation and low prices.
We are analysing mobile prices over
recent years in 25 countries. Our find-
ings show that average prices are
around 10-20 per cent lower in markets
with four operators and a disruptive
player than in those with only three
established networks. Austria’s regula-
tor says that, since the deal there, over-
all mobile prices have climbed 15 per
cent and by 30 per cent for customers
who only make calls and send texts.
Second, the UK’s networks would face
disruption. Recently, the four operators
have combined their cables and masts
into two networks — one used by Three
and EE, the other by O2 and Vodafone.
This works well: the four companies
are still effective retail competitors, who
compete independently on coverage
and quality. Any merger would threaten
that arrangement.
A third concern lies on the high street.
Most phone contracts are still sold in
shops, with independents taking a big
share. A combined Three/O2 would
shift the balance of power between
mobile networks and the independent
retailers who help constrain the price of
mobile handsets and bills.
Many of our concerns relate to com-
petition between operators who own the
networks on which mobile phones rely.
Only these four companies can make
your mobile signal faster, more reliable
and widely available. Establishing a new
mobile network might be one answer,
but this would take time, and considera-
ble investment.
While the merger is reviewed, Ofcom
will keep working to promote healthy
rivalry between operators. We want UK
consumers and businesses to enjoy fair
mobile prices and cutting-edge prod-
ucts for years to come. For that, we need
strong competition: the basis of protec-
tion and the incentive to progress.
The writer is the chief executive of Ofcom
10 ★ FINANCIAL TIMES Monday 1 February 2016

BUSINESS EDUCATION

Graduates’ love affair with consultancy endures

As the ‘big three’ firms of MBA students in that it looks for intel- case-based interview to recruit MBAs.
lectually curious people with a strong “The case study method ingrains a con-
continue to lure MBA mix of hard and soft skills — a top busi- sulting mindset on students from an
students, Ian Wylie ness school is one of the best places to early age,” says Andrew Sturdy, a man-
find a rich mix of these people.” agement professor at Bristol University.
examines their influence Throughout the financial crisis, Har- “Harvard pioneered this method with
at the elite schools vard Business School has placed a the explicit support of McKinsey.”
steady quarter of its MBAs in consult- In his unauthorised biography of

G
oogle, Facebook and
Amazon might grab more
of the headlines, but con-
sulting firms are still snap-
ping up the most students
at top business schools as they remain
the largest recruiters, according to the
latest MBA placement statistics.
Amid a surge of interest in technology
companies, consulting’s enduring
appeal — particularly that of McKinsey,
Boston Consulting and Bain, or the “big
three” — comes at the expense of
finance and banking, which are still
recovering from recession.
Recent surveys suggest little more
than a third of those who enter consult-
ing after graduation are still working in
the field six to eight years later. How-
ever, MBA students continue to find
attractive the high starting salaries — up
to $145,000 a year — and the fast career
progression offered by consulting firms.
Still, some observers worry the influ-
ence of consulting is now so great that it
may be influencing business schools to
serve the needs of the profession.
Among the schools to report place-
ment statistics for their classes of 2015,
Chicago Booth says the consulting sec-
tor has recruited 32 per cent of its MBAs,
a rise of 4 per cent on last year and the
first time consulting has come close at
the school to toppling financial services.
Consulting firms hired the most
MBAs at Dartmouth’s Tuck School of
Business in 2015 for the second consecu-
tive year. More than a third of its MBAs
this year have entered consulting, with
the big three snapping up 18 per cent.
“For the past few years, about a fifth of
Tuck’s graduating students have gone to
work for the big three consulting com-
panies and this current recruiting cycle
looks to continue that trend,” says
Stephen Pidgeon, the school’s associate
director for career development who
joined McKinsey when he graduated
from Tuck in 2007. “Consulting pro-
vides a very good match for the interests
ing. And its appeal is not restricted to
the US. Insead reported that consulting
firms hired 41 per cent of its 1,011 MBAs
in 2014, more than a quarter hired by
the trio of top firms.
A glance back at history suggests that
in the early days of consulting it was the
strategy firms that needed business
schools to help legitimise their emerging
profession. Now their influence spreads
beyond recruitment. Joe O’Mahoney,
senior lecturer at Cardiff Business
School says several European schools,
‘The practice of hiring from
top schools really took off
when BCG started to
compete with McKinsey’
such as Grenoble and Cardiff, now run
consulting modules. Others, such as
UCD Smurfit, run MScs in management
consulting while Lancaster invites
Accenture consultants to teach on one
of its MScs.
However, Prof Sturdy says that even if
these services are on an MBA curricu-
lum, good business school academics
are not afraid to subject them to signifi-
cant critique. “Even the best consulting
firms rely on correlation rather than
causality when selling ideas,” he says.
“This problem would come up in any
research methods class.” Prof Sturdy
argues that consulting firms could con-
tribute further to MBA learning by dis-
cussing more practical examples, but
thinks they are hindered by their need
to be associated only with success.
The top firms believe their relation-
ship with schools is a win-win for both
sides, but their lead recruiters are keen
to stress their future as well as current
recruitment needs. “We’d like MBAs to
learn more about organisational
dynamics and the science of decision-
making,” explains Mel Wolfgang, head
A natural progression
Former McKinsey partner
settles in as Darden dean
Given consulting’s growth and
influence, it is hardly surprising that
business schools employ former
consultants. Scott Beardsley, who was
a McKinsey partner and head of the
firm’s learning and leadership
development activities, is the new dean
of the Darden School of Business in
Charlottesville, Virginia.
Has it been easy to settle in?
Yes. There are similarities between the
way academics and consultants work
and make decisions. Neither likes being
told what to do, and both are in the
talent management profession.
What could business schools
learn from consulting?
It is not for consulting firms to give
lessons to anyone. However, they are
sophisticated at finding the best talent
in the world and schools could learn
from that remarkable efficiency. And
McKinsey examines learning and
leadership across the entire career of
its people, while business schools are
focused on delivering that to other
students. They could be more
methodical in developing their staff.
What opportunities exist for
further collaboration?
Schools and consulting firms could
collaborate more on capability building
and thought leadership — schools are
about ideas and insights; there could
be greater knowledge collaboration.
of global recruitment at BCG. “That
would help clients absorb the work we
do and change their decision-making
for the better.”
Brian Rolfes, director of global
recruiting at McKinsey, says client work
continues to expand outside traditional
strategy consulting and into implemen-
tation, restructuring, transformation
and digital. “Clients are also looking for
more specialised experience so people
with a MBA and experience in certain
functions or industries are more impor-
tant than ever,” he says.
The mutual benefit has been most
evident between McKinsey and Har-
vard Business School — so entwined that
writer Martin Kihn coined the term
McHarvard in House of Lies, his contro-
versial book on consulting. Through its
case study method, McKinsey helped
bolster Harvard’s MBA, giving it real-
world cachet. McKinsey still uses the
McKinsey, The Firm, business journalist
Duff McDonald writes that when Har-
vard president Derek Bok proposed jet-
tisoning case study methods in 1979,
McKinsey chief executive Marvin
Bower wrote a 52-page retort. The pro-
posal was scrapped. In return, Harvard
acted as a breeding ground for future
McKinsey consultants who understood
the firm long before they started work-
ing there.
McKinsey became the first to focus on
hiring business schools’ crème de la
crème — at Harvard these were the
Baker Scholars, the top 5 per cent of
each class — prioritising youth and
potential on the grounds that it was eas-
ier to mould a young mind. By the mid
1960s, at least two of every five McKin-
sey consultants had gone to Harvard.
“The practice of hiring from top schools
really took off when BCG started to com-
pete with McKinsey for talent in the
1960s and 1970s,” says business journal-
ist Walter Kiechel and author of Lords of
Strategy, “and business schools had to
demonstrate success in placing their
students with the firms.”
In recent years, the big three have
widened their search to a broader range
of business schools, but the bulk of
recruits comes from elite schools: Har-
vard, Yale, Kellogg, Duke, Wharton,
Chicaco Booth, Michigan Ross, MIT
Sloan, Tuck, Darden, London and
Insead. Being top employers puts them
in a strong, some would say dominant,
position at some schools. “Consulting
firms use greater resources than many
other employers can,” says Prof Sturdy.
“Business schools are not always effec-
tive in regulating this and [it] can crowd
out other options.”
Video: Darden business school’s
dean on being able to operate in a
shared governance environment:
www.ft.com/b-school-video
Monday 1 February 2016 ★ FINANCIAL TIMES 11

BUSINESS EDUCATION

iPad plays lead role in Lord Puttnam’s EMBA Lights, camera, courses
Programmes on the film industry

Film-maker prepares sound on a video clip from his teaching

creatives for business,
writes Jonathan Moules
Lord Puttnam has swapped the silver
screen for an iPad. The Oscar-winning
British film producer, whose credits
include Chariots of Fire, The Killing Fields
and Bugsy Malone, has a new weekly rou-
tine, teaching film-making skills via a
high-speed broadband connection from
his home in rural Ireland. And he clearly
loves his second career.
“I get up in the morning, cross my
courtyard and I am in Brisbane, talking
to a group of around 30 interested mas-
ters students,” he says, swiping through
his tablet device for the seminar notes
he uses to teach postgraduate studies at
universities in Australia, the UK, Ire-
land and Singapore. “That is nirvana,
from a lecturing point of view. I am not
on a plane, I am not getting sweaty and I
am not jet-lagged.”
We have met in the London headquar-
ters of the British Academy of Film and
Television Arts (Bafta), of which Lord
Puttnam is a member, for the launch of
the latest venture for his digital teaching
business, Atticus Education.
It has teamed up with the UK’s
Ashridge Business School and Creative
Skillset, an industry training body, to
create an executive MBA specifically for
the creative industries, providing the
entrepreneurial skills Lord Puttnam
believes the sector lacks.
“As this business gets more and more
complex, with an increasing number of
Ten Questions
Do not be
afraid to lead
Lisa Lambert’s role as a vice-
president of Intel Capital, which
manages investment for the US
chipmaker, is a world away from the
farming community in Northwood,
Ohio, where she grew up.
Determined to go to university,
she earned a scholarship at
The bigger
picture: Lord
Puttnam says
the job of a
film-maker has
widened — Charlie
Bibby
Pennsylvania State University
where she studied management
information systems.
With an MBA from Harvard
Business School, she lives in
Saratoga, California, and is a sport
fan.
What is your best business
decision? And worst?
VMware was my best investment
decision. It was a $218.5m deal for
us and after spending so much
time in the process, it was
rewarding to get a great strategic
platforms, the job of the film-maker has
widened,” Lord Puttnam says. “The
same person can be making a television
drama one week, a feature film the next,
and then a TV commercial.
“What is missing from the equation,
or has been missing . . . are the entre-
preneurs that grasp the whole picture.”
The two-year EMBA programme will
be delivered, like Lord Puttnam’s teach-
ing, predominantly online, with a group
study trip. The intention is to get stu-
dents talking about the potential of
recent advances that appear to have a
future, such as virtual reality.
“We want to ask students the impor-
tant questions about these markets,”
Lord Puttnam says.
“What will that market look like?
How will it monetise itself? Who are
going to be the big players, or is it going
to be one of those classic situations
where it’s going to be the small start-up
that actually captures the market
because the big players are too slow to
move — or see it as a threat rather than
as an opportunity, which is classically
what happens,” he adds.
Lord Puttnam turns 75 this year, but
only occasionally slips into the sort of
technology rage expected of people of
his age, cursing in frustration when the
and financial return for Intel.
However, in the early part of my
career I came across a start-up
with a bright, likeable team who
just could not execute
consistently. I became too close
and could not see the red flags to
get out of the deal. The experience
was difficult but it made me a
better, more disciplined venture
capitalist.
What is the best piece of advice
given to you by a teacher?
Not to be afraid to lead, especially
material fails. He also rails against the New York University: Stern
jargon used in conversations about dig- Joint MBA/MFA degree
ital delivery of business education.
“I have a problem with [the word] Aimed at budding film producers
online, because somehow it conjures and entertainment industry
images of the way the Open University executives, this degree covers
was delivered five years ago through financing and filmmaking. The
video lectures,” he says. course is a partnership between
“My teaching is absolutely interac- NYU Stern School of Business and
tive. I can see the students all the time. Kanbar Institute of Film &
They are in studios. In two cases they are Television at the Tisch School of
actually in quite large auditoria. the Arts. Students get a chance to
“I have got my computer, I have cre- attend the Cannes Film Festival.
ated my two-hour seminar with all the
slides and clips and everything else I
need, I know what’s coming up next, so I FutureLearn: The Open University
talk, illustrate, talk, question, Q&A, The Business of Film
illustrate, talk, question. For two hours.”
I ask Lord Puttnam whether he thinks A free, six week and part-time
that being a film-maker helps him in the online course, the Business of Film
classroom and whether his peers could has been created in association
teach anything to business school pro- with Pinewood Studios, London.
fessors trying to teach virtually. This is where Star Wars: Episode VII
“My belief is that every single school — the Force Awakens and the
teacher ought to see themselves as con- James Bond film Spectre were
tent creators, but that sometimes means filmed. Learn why films get public
using other people’s material,” he says, funding and the link between
admitting that he plays other people’s marketing and film success.
films in his lectures.
“Whatever tool you can lay your
hands on that makes you a better University of Southern California
teacher, and makes a subject more vivid Graduate certificate in the
and memorable, you have an obligation, business of entertainment
I think, to use it. That’s enough to get
some copyright owners have smoke The programme is run by the USC
coming out of their ears, but I really pas- School of Cinematic Arts in
sionately believe that.” association with the Marshall
Lord Puttnam speaks to Jonathan School of Business. The courses
Moules: www.ft.com/b-school-video include the world of the producer;
feature film financing and the
studio system, and entertainment
as a woman. It came from my marketing in today’s environment.
international economics teacher at
Harvard. She encouraged me to get
the career I wanted.
UCLA: Anderson
What is your biggest lesson learnt? MBA specialisation in
How to build a great team. Being a entertainment and media
leader is not simply about giving management
instructions but getting the best
out of people. That means building This programme offers courses
a diverse team with a wide range such as film and television finance
of backgrounds and skills. taught by a former executive
vice-president of MGM studios.
Read the full version of this article Other courses include one entitled
at ft.com/ten-questions making creativity profitable in
entertainment and technology.

Target the best in business with

FT Special Reports

Business Education: Gemma Taylor in London

Online learning Tel: +44 020 7873 3698
Email: gemma.taylor@ft.com

Next issue: 7th March 2016

Find out more and get a full list of representatives at www.ft.com/advertising

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12 ★ FINANCIAL TIMES Monday 1 February 2016

BUSINESS LIFE

Boneheaded
‘
You can always go faster than you Economic Forum not as the stupidest good people; that it has deep pockets, in the interests of his electorate that
think you can. things famous people said at Davos that it can raise money cheaply and can other EU companies are less

aphorisms Those are not my words. They are

the words of Meg Whitman, Hewlett-
Packard Enterprise chief executive,
from Davos’s who said them about 10 days ago at
Davos, where they were duly jotted
windy summit down and published in a collection of
quotes from world leaders during their
week in the snow.
I admire the Whitman aphorism for
its simple syntax and nice short words.
The only trouble with it is that it’s
nonsense. Often in business you can’t
go nearly as fast as you fondly think
you can. When you try, you fall on your
face — and Ms Whitman, of all people,
2016, but as the smartest.
Most disturbingly — given that Davos
is kept afloat on corporate money —
every quote devoted to business is not
just empty, but wrong. Marc Benioff,
CEO of Salesforce, picks up where Ms
Whitman left off by declaring: “Speed
is the new currency of business.” On
the contrary, there is no evidence that
business is speeding up. According to a
delightfully sensible Economist article
US business is as slow as ever.
Still dumber was the following from
Emma Marcegaglia, chair of Eni, the
Italian oil and gas group: “We need less
afford to take big risks. Does Mr
Schulman really think Yahoo is going
to triumph while Google founders?
The quotes are bad enough when the
leaders stick to subjects they know
about. But when they stray into other
areas, what they say is borderline
certifiable. “Every country needs a
Minister of the Future,” Mr Benioff
insists. No they don’t: as all policy is
about the future, there is absolutely no
need for a special department for it.
Christine Lagarde is dodgy enough
on her own territory — “A degree of
volatility is OK. The market sorts
competitive than British ones.
What are we to conclude from these
worthless soundbites? Do they prove
that world leaders are fools? Not at all. I
think they establish the truth of a new
The other 35 law that was proposed to me recently
by a smart European Commission
quotes are almost functionary. He has noticed that the
all as dismal as amount of guff talked is always in
direct proportion to the size of the
Meg Whitman’s. audience. Business leaders like talking
But the idiots are to big audiences as it’s good for their
prestige. Equally, they know it is bad
not the waffling form to say anything new or interesting
speakers to lots of people as it would mean

should know that. If her predecessor at
HP hadn’t been quite so hasty in
buying Autonomy, it would have saved
itself a big mess.
The 35 other quotes are almost all as
dismal; variously moronic (“The
fourth industrial revolution should be a
revolution of values”), silly (“Let’s put
our optimism goggles on”) or empty
(“We are not the prisoners of a
Lucy Kellaway predetermined future”).
When I first read the collection I
Onwork thought it was a spoof. Then I thought
the quotes were real but selected
maliciously to make the speakers look
foolish. I now discover they were
specifically picked by the World
regulation and more innovation in
Europe.” To decide that regulation is
bad per se and innovation good is both
dangerous and daft. If you operate
potentially lethal power stations,
regulation strikes me as a very good
thing indeed.
Yet the prize for the most
boneheaded quote goes to to Dan
Schulman, CEO of PayPal, who said:
“The biggest impediment to a
company’s future success is its past
success.” On the contrary, past success
is the single most reliable indicator of
future success. It forms the foundation
of valuation of companies on the stock
market; it suggests a company employs
’
things out, eventually,” she says, flying giving away something for nothing. All
in the face of the evidence of the past the other important speakers are
eight years — but is even dodgier when equally reluctant to cast pearls before
she strays. “We’ve heard a lot about the swine, and so forgive each other their
Internet of Things — I think we need an dull platitudes.
Internet of Women,” she boldly asserts. The idiots are not the waffling
Is this a joke? The point about the speakers. They aren’t even the people
internet of things is that fridges and in the audience who have paid through
toasters have little chips in them so the nose to hear nothing — as their own
they can talk to each other. Is the IMF prestige is enhanced simply by being
chief suggesting that women need there. The only idiots are people like
chips in them so they can chat too? me who look at the quotes and are
But the most dismal quote of all
comes from David Cameron: “I want to
outraged to find them an empty
collection of bien pensant twaddle.
hardwire competitiveness into the
European Union.” He has no business lucy.kellaway@ft.com
to want to “hardwire” such a thing; it is Twitter: @lucykellaway

Monday interview. Herman Gref, CEO, Sberbank Working smarter

How to discover and show

A moderniser and sanctions survivor off your potential
EMMA DE VITA

If you are waiting for your opportunities. “If you want

manager to spot your to be more creative, start
potential, then you might be building your networks with
better off trying to discover other people who are seen
your talents yourself. as doing creative things.”
Research finds that 77 per Building relationships with
cent of businesses in the UK people in other parts of your
do nothing or little to company will also help your
recognise potential in their talent to be spotted, beyond
staff. The survey of 1,000 your silo.
employees and 1,000 Penny de Valk, a
managers in the UK for managing director at Penna,
Penna, a human resources says it is important that you
company, found that when demonstrate to your
potential was recognised, manager that you want to
only 23 per cent of take control of your career,
employees said that there but with an emphasis on
had been any investment in collaboration. “It’s not about
developing their skills. self-promotion but letting
When it comes to people know what your
discovering your potential, aspirations are,” she says.
do not rely on self-reflection Talk to your manager
as this does not work very about what you might like to
well, says Professor André do differently or try out,
Spicer, of Cass Business then set specific objectives
School. and timeframes together.
“We are often just as You can also ask for a
deluded about ourselves as mentor from an area in the
we are about other people,” business you are interested
he says. Just because you in or to get involved in a
like holding dinner parties project that interests you
The leader of Russia’s Herman Gref targets, is run by a pro-western reform- egy assumed oil prices over that period does not mean you should and is beyond your usual
and Vladimir er who for 15 years has been one of the of $95, about three times today’s price. open a restaurant, he adds. remit.
biggest bank talks to Putin: the leading liberals in president Vladimir CV
Mr Gref warns that big global banks Relying on the advice of Be wary of the manager
Neil Buckley and Martin Sberbank chief Putin’s ruling circle. As economy minis- are being challenged by “fast, flexible” others is also dangerous, who tries to block you.
is one of the ter, he led efforts to bring Russia into the Born February 8, 1964, Pavlodar region, Silicon Valley financial technology com- says Prof Spicer, because There is a danger of getting
Arnold about the bumps remaining World Trade Organisation. Kazakhstan, USSR panies. So the bank presented a radi- people tell you what they stuck in a role if you are
Education Omsk State University, St would like you to be. good at your job, as your
on his road to reform liberals in the
president’s
That he still feels able to criticise the
government’s record reflects, perhaps,
Petersburg State University law school
cally revised strategy late last year. Sur-
prisingly, it still envisages increasing “Too often people in firms manager will want to keep
Career
ruling circle his reputation as one of the few senior 1991: Joins St Petersburg City profits and assets in 2013—2018 by 1.8 end up in a position they you where you are, says Ms
n December 2014, as Russia’s rou- Reuters/ Alexei Nikolsky/ RIA
Russians able to stand up to Mr Putin. administration times. Though oil prices have fallen hate because an authority de Valk.

I
Novosti/ Kremlin
ble plunged amid sliding oil prices
and western sanctions over
Ukraine, Sberbank, the country’s
biggest lender, suffered what its
chief executive Herman Gref described
as a “co-ordinated attack”.
A million customers received anony-
mous text messages claiming that the
bank, already restricted from raising
western financing by sanctions, was
about to be cut off from international
financial networks and that deposits
would be blocked.
Queues formed at Sberbank ATMs as
depositors withdrew Rbs1.3tn (more
than $20bn) in a week and IT systems
went into overload. Management kept
silent, having concluded that reassuring
messages might only inflame the panic.
“It was a very dangerous moment,” says
Mr Gref. “Our systems, our liquidity
management, our customer service,
were all put to the test.”
The scare abated and Mr Gref says he
is proud Sberbank got through without
external help. Russian authorities are
still investigating the attack.
But the crisis was a rude shock. Since
2007, Mr Gref had transformed Sber-
bank from a holdover of the Soviet
bureaucracy into a modern financial in-
stitution. Barely a year earlier, it had an-
nounced bold plans to double profits
and assets by 2018.
Then, Mr Gref says, three “black
swans” hit Russia. The most damaging,
in his view — though he concedes it
stretches the “black swan” definition of
unexpected events that wreck previous
assumptions — was not oil prices or
sanctions, but Russia’s long failure to
modernise its economy reaching a
crunch point.
“Basically the key problem now is the
dire need for structural reforms,” he
says. “Because even if the oil price
increases and sanctions are lifted, if
reforms are not implemented there will
never be high growth.”
An irony of the sanctions is that Sber-
bank, as one of their biggest corporate
A long-time friend, who asks not to be
named, says the Sberbank chief execu-
tive remains someone the president lis-
tens to on economic matters. Steering
the lender through the crisis without
needing a state bailout has enhanced his
standing. Sberbank’s net profit fell 24
per cent last year, but it accounted for
the bulk of the entire Russian banking
sector’s profits.
With a softly-spoken manner that be-
lies his sometimes outspoken public
comments, the 51-year-old has known
Mr Putin, like many in today’s Russian
elite, since the 1990s when they worked
in the St Petersburg city administration.
In 1999, Mr Putin chose Mr Gref to
head a think-tank preparing his presi-
dential economic policy. Then, as econ-
omy minister, Mr Gref implemented
parts of his bold “Gref plan” before the
Kremlin’s reform enthusiasm waned as
energy prices soared.
In 2007, he moved to the corporate
world, although Sberbank was still 57
per cent state-owned, and pledged to
“teach an elephant to dance” by re-
vamping the company, its 20,000
branches and 250,000 employees.
The task was byzantine. Sberbank,
Mr Gref notes, was “basically 17 differ-
ent banks” — regional divisions with dif-
Three things are proof of Herman Gref’s
Second transformation of Sberbank, says Sergei
opinion Guriev, a leading Russian economist
now at France’s Sciences Po, who sat on
the bank’s board from 2008 to 2014.
The former Service “dramatically” improved;
director financial results, until last year, were
“spectacular”; and he equipped it to
withstand crisis — thereby helping
stabilise Russia’s financial system and
economy.
“He’s happy to bring in independent
talent and recognise his own mistakes.
He’s always learning, he reads a lot and
he listens to Russian and (even more
uncommon) non-Russian innovators,
researchers and entrepreneurs.”
1998–2000: First deputy minister of state
property of the Russian Federation
2000–2007: Minister of economic
development and trade
2007–present: Chief executive, Sberbank
Interests Self-improvement and
education, running and reading
ferent systems. He set about hiring
young managers who centralised opera-
tions, cut bureaucracy and improved
service.
In 2011, Sberbank acquired Russian
investment bank Troika Dialog, then
the eastern European operation of Aus-
tria’s Volksbank, and in 2012 Turkey’s
DenizBank. Sberbank’s countries of
operation went from two, when Mr Gref
joined, to 22. It raised $5.2bn in Lon-
don’s biggest stock market listing of
2012, as Russia’s central bank reduced
its stake in the lender to 50 per cent plus
one share.
Then the black swans arrived. Pro-
tests in Kiev led to revolution, Russia’s
annexation of Crimea, war in east
Ukraine and sanctions. Oil prices fell
and Russia slid into recession. On sanc-
tions, Mr Gref notes only that they con-
stitute a “strange situation” when “over
30 per cent of our free float is held by
American investors, and over 20 per
cent is British investors”.
After the bank was largely barred
from raising western financing, it went
through “quite a difficult period” of
compliance, stopping all sanctioned
operations, when it was unable to pay
out for several days. “But we survived
through that, and the situation has sta-
bilised now,” he says.
Sberbank was also forced to find new
sources of financing. “If before, we hard-
ly ever used to attract loans from China,
now we have to do it,” he says. “But it’s
not the same scale” as its previous west-
ern financing. Yet Sberbank still had
obligations to investors, to whom it had
pledged in 2013 to double profits in five
years. Mr Gref smiles as he recalls that
even the “negative” scenario in its strat-
again recently, the bank told investors
in January that it was not altering the
strategy.
If the previous plan was ambitious,
says Mr Gref, “we’d call the new one
hyper-ambitious”. But the path this
time is different. Corporate lending tar-
gets have been revised down, with Sber-
bank aiming instead to lift its already
large share of Russian retail lending by
more cross-selling of financial services.
International expansion is out.
The strategy demands even more
cost-cuts and organisational change. Af-
ter shifting from a top-down divisional
structure to a “matrix” model, borrow-
ing methods from Boeing, the next goal
is a “3D matrix”, where teams co-oper-
ate across boundaries throughout the
organisation. To illustrate the need to
break down barriers, Mr Gref picks up
three glass water bottles and, momen-
tarily alarming those around the table in
his London hotel, clinks them heavily
together — they do not smash.
In IT, after shrinking 30 data centres
to one, the next goal is a single, open-
source platform built around “in-mem-
ory processing”, which speeds up cus-
tomer data analysis, to help Sberbank
confront the fintech upstarts.
Despite Mr Gref’s enthusiasm for
tackling challenges, the long-time
friend says sanctions have come as a
personal blow. Given Russia’s lengthen-
ing downturn and the Sberbank boss’s
record as moderniser and crisis man-
ager, this person speculates the Kremlin
could recall him to a top economic role.
Mr Gref has said he has little desire to be
a minister again.
But after Russia’s long inertia fostered
by economic good times, could adver-
sity finally prove the spur for reforms?
“It’s true that human nature is quite
resistant to change, and changes start
when the money runs out,” he says. But
reforms also require money to be spent.
“The times when we were rolling in
fat, literally, we had more possibilities
for reform. But we had less need.”
figure told them they would
be good at it,” he says.
The best thing to do is to
experiment, he says. If you
think you might be good at
something and other people
confirm it, then try it out.
This will help you to explore
parts you do and do not like,
as well as help you to hone
your talent.
“Talent is something that
we develop through
practice, it is not simply
there,” says Prof Spicer.
His other advice is to
broaden your network of
contacts to give you
inspiration, support and new
Feedback
Sarah O’Connor’s column
on millennial workers last
week argued that, far from
feeling entitled, they were
blighted by insecurity in
their careers. It resonated
with a reader called ‘lao
pan 85’, who commented:
I was born in 1985,
graduated university in
2008 . . . I do feel like I’ve
been playing “catch up” ever
since, and often wishing I’d
been born a few years
earlier so I had
“significant” experience
under my belt before the
crash hit and hiring fell
off a cliff. I still go to
interviews and
am asked
questions
like: “I see
you worked
in a string
You may also suffer from
being pigeonholed by your
manager. If this happens,
then it might be time to
consider a sideways move
within your organisation,
gaining relevant experience
by volunteering for a charity,
creating a plan to develop
your talent beyond your job
or ultimately, leaving.
Prof Spicer says:
“Remember that these
transitions rarely happen
instantly — often new
talents are built only
gradually.”
workingsmarter@ft.com
of internships after college,
2008 into 2009. Could you
not find a job?”
It’s obvious to me that
people of older generations
(particularly here in
Washington, DC) do not
really understand the huge
disruption that the crisis
caused in my generation’s
career trajectories . . . a
surplus of educated young
people bids up skill
levels and bids
down wages.
Meanwhile young
people are
reluctant to
negotiate a
raise because
they know
there’s a long
line of
ambitious
young
graduates.
Monday 1 February 2016 ★ FINANCIAL TIMES 13

ARTS

Swept up in the heat of the moment T H E AT R E

POP
Savages
Hippodrome, Kingston upon Thames, UK
aaaaa
Ludovic Hunter-Tilney
“I really appreciate how you’re enjoying
the moment. It’s the only way to be,”
said Savages’ Jehnny Beth, employing
the kind of logic that unravels in the cold
light of day. It’s unlikely Beth’s tour
manager spends much time enjoying
the moment while organising accom-
modation, getting the band to and from
venues, making sure the equipment
arrives and so on.
But the heaving confines of a rock gig
are no place for the cold light of day. And
tonight’s gig, played by a band justly cel-
ebrated for their live ferocity, made an
unarguable case for seizing the
moment. Numerous crowd surfers were
swept up by it, clambering over their
neighbours to be carried to the foot of
stage, human offerings fished out from
above the heads of the throng by Beth’s
guardian, a bouncer in a fluorescent tab-
ard. He looked less impressed with how
the moment was unfolding.
Savages are an all-woman quartet
from London who play post-punk with
an infusion of energy from US hardcore
punk. Dressed in regulation black,
they opened with “Shut Up” from
their 2013 debut Silence Yourself, a
stern blast of whiplash guitar and com-
manding vocals. Their new album Adore
Life reduces the pace, a challenge for
their pell-mell live set. But it was met in
style, as shown by the darkly enticing
groove of the next number, “Slowing
Down the World”.
The heard-it-all-before brigade mut-
ter about Siouxsie Sioux, whom Beth
does indeed sound like. But such dull-
ardry ignores what the foursome do
with their inspirations. On stage, drum-
mer Fay Milton and bassist Ayse Hassan
were a formidable partnership, all bris-
tling rhythms and urgent bursts of
action. Gemma Thompson conjured a
remarkable range of tones from her gui-
tar, for instance the jet-like rumbles and
violent slashing riffs in “Surrender”, a
Magnetising: Jehnny
Beth of Savages on stage
at the Hippodrome,
Kingston. Right:
Australian circus group
Circa in ‘The Return’
Derek Bremner
Chris Herzfeld
contrast illustrating the song’s theme of
finding pleasure in extremes.
While her bandmates were introspec-
tive, intent on their roles, Beth was a
magnetising frontwoman, jabbing her
finger at the front row for the aggressive
refrain of “Evil” and flinging herself on
to the audience’s heads during the clam-
orous “Hit Me”. “I adore life,” she cho-
rused towards the end, uttering it with a
hint of the dramatic chanson tradition
of her native France: “There is a truth
that cuts like a knife.” Getting to the
heart of the matter is the point of a Sav-
ages gig: bruises and ringing ears can
wait until tomorrow.
savagesband.com
T H E AT R E
The Return
Barbican, London
aaaae
Sarah Hemming
The Australian contemporary circus
group Circa, visiting London as part of
the London International Mime Festi-
val, ventures into territory more usually
explored by poetry, drama or opera with
this harrowingly beautiful piece about
grief and displacement.
The “return” at the heart of Yaron
Lifschitz’s piece is that of Ulysses; the
six-strong cast is accompanied on stage
by musicians and two singers (Kate
Howden and Robert Murray) perform-
ing extracts from Monteverdi’s Baroque
opera Il ritorno d’Ulisse in patria. But just
as that music is repeated and refracted
through different styles, so the central
image of Ulysses and Penelope, a man
and woman separated by war, recurs
over and over, as the performers evoke
partings, meetings and journeys in dif-
ferent sequences.
As they do so, they come to represent
the endless procession of traumatised,
dispossessed people through the ages.
It’s impossible to see one passage, in
which they struggle in pairs across the
stage, rolling, climbing and falling
together towards a distant warm light,
and not think of the refugee crisis cur-
rently unfolding across Europe
In front of a grim steel wall, which
could be any of the barriers used
throughout history to keep people in
or out, the three men and three women
climb, spin, flip and bend. What is
remarkable is the way the ensemble
(Nathan Boyle, Daniel O’Brien, Nicole
Faubert, Bridie Hooper, Brittannie
Portelli and Duncan West) use these
classic acrobatic moves — their vocabu-
lary — to express grief, hope and
despair. The women huddle in a group,
then separate, one to clamber around a
lonely spinning cube, another to bal-
ance precariously on a set of
small poles, the third to
fight her way up and down
hanging straps. In a duet a man
tries to comfort, or perhaps con-
tain, a woman who has moved
beyond solace into a squirming
mass of limbs.
The performers push at their phys-
ical limits, embracing ugliness, distor-
tion and pain. In one sequence all six
bend and contort their bodies until
they appear misshapen and broken;
in another they somersault to fall
shockingly to the ground; in a third
they repeatedly climb on top of one
another to peer at some horizon we
can’t see. A tough watch, but a painfully
eloquent expression of loss, bewilder-
ment and longing.
mimelondon.com
Escaped Alone
Royal Court, Jerwood Downstairs, London
aaaae
Ian Shuttleworth
On press night the new “full-length”
piece by Caryl Churchill lasted, by
my watch, 51 minutes. Yet it packs a
formidable charge: Churchill has
now perfected an elliptical style as
individual and as powerful as that of
Samuel Beckett.
An elderly woman passes the door to a
neighbour’s back garden, and goes in.
She and the three women she meets
share a cup of tea and chat about noth-
ing in particular (at one point they sim-
ply sing in full The Crystals’ “Da Doo
Ron Ron”). Each also has a soliloquy
about a matter much closer to the core
of the character. The scenes of conversa-
tion alternate with the first character,
Mrs Jarrett, alone on a darkened stage,
delivering a series of surreal yet chilling
monologues about various flavours of
regional or global apocalypse: “The
chemicals leaked through cracks in the
money” is such a Churchillian line.
These passages sound not unlike
abbreviated versions of the upheavals
narrated by Linda Bassett in Churchill’s
Far Away when it premiered upstairs
here at the turn of the century; it is no
surprise to see Bassett occupying the
same role here. She is consummately
skilled at giving an unfussy delivery
even to the most portentous lines. She
takes a back seat in the quartet scenes, in
which Deborah Findlay, Kika Markham
and June Watson find the rhythms of
isolated phrases and, under James
Macdonald’s direction, build char-
acters from these fragments.
What’s it intended to mean?
Blowed if I know. Mrs J’s catalogue
of catastrophes might stand for
the fears within us all, or for the
specific terrors of ageing, when
it feels as if the world is ending
with us. Perhaps, conversely,
it’s that our personal concerns
are (rightly or wrongly) no
less dear to us than planetary
matters. In the end, the medium is
the message, and it is created and
conveyed with mastery.
To March 12
royalcourttheatre.com

In the end, it’s pleasure that triumphs

Dialogue:
OPERA from far left,
Lucia Cirillo,
Il trionfo del tempo e del disinganno Elvis Lexani
La Scala, Milan and Martina
aaaee Janková
Brescia/Amisano

James Imam

One can still dine in Paris’s legendary La

Coupole brasserie, where Man Ray
rubbed shoulders with Picasso and
James Joyce knocked back the whiskeys.
Handel enjoyed similarly eminent com-
pany some 200 years earlier. In the
homes of Roman high society, he
thrilled luminaries such as Corelli and
Scarlatti with his supremely vital music.
Jürgen Flimm’s 2003 Zürich produc-
tion of Il trionfo del tempo e del disinganno
(The Triumph of Time and Truth)
merges these worlds. The marriage is
happy, if originally one of convenience:
a production of Haydn’s Armida was
cancelled when the conductor fell ill, so
Handel’s oratorio was airlifted into the
Coupole-inspired set.
The art deco-baroque blend retains
its allure, updated here by Flimm and
Gudrun Hartmann to mark the launch
of La Scala’s own early music ensemble.
This was an evening of high-octane
drama that only sometimes overshot
the mark.
The text is a philosophical dialogue
by Cardinal Pamphili — Handel’s
Roman patron — which sees Tempo and
Disinganno rescue Bellezza (Beauty)
from the grasp of Piacere (Pleasure).
That Flimm sets Bellezza’s enlighten-
ment over a long, boozy night is a touch
of directorial flair. The obvious reading
is flipped so that we rally for Piacere
throughout. But her adversaries persist
and draw Bellezza to her demise.
The stage bristles with detail, from
the quotidian to the raucous to the sur-
real. That Diego Fasolis made it impossi-
ble to take our ears off the score was
therefore no small feat. He stoked tempi
relentlessly in playing that was by turns
opulent and lithe. This was a perform-
ance of thrilling, rough-hewn vigour.
By using contracted players on gut
strings rather than enlisting specialist
baroque players, La Scala hopes to forge
a distinctive approach to early music.
While half of tonight’s players came
from Fasolis’s own group, I Barocchisti,
the house’s venture into this repertoire
is well on the way.
Singers fared less well, buckling
under the conductor’s interminable
drive. Martina Janková and Leonardo
Cortellazzi gleamed early on but were
clawing for high notes by the end, and
Sara Mingardo’s liquid mezzo eventu-
ally sounded hollow. Lucia Crillo’s
Piacere was the standout performance,
impishly daring in her embellishments.
La Scala’s Baroque project is out of the
blocks almost too quickly, but there
were reams of devilish fun.
To February 13, teatroallascala.org

Music Classical album reviews

By Richard Fairman
Haydn: String Quartets
Op. 76
Doric String Quartet
Chandos
aaaae
In his Op.76 string quartets
Haydn shows us six faces —
if not more. Each one of the
half-dozen quartets ventures
daringly in character. We see
Haydn the courtly and the
rustic, the warm-hearted
and the radiant, everything
that is so life-enhancing in
his much-loved oratorio
Die Schöpfung (The Creation),
which was composed
around the same time.
In these late masterpieces,
the Doric String Quartet’s
performances are cultured
and technically first-rate.
They are also uninhibited at
entering into the spirit of
Haydn’s every new persona
— warmly recommended.
New Year’s Concert 2016
Vienna Philharmonic
& Mariss Jansons
Sony
aaaae
If you missed the annual
New Year concert from
Vienna the morning after
the night before, here is an
opportunity to catch up
with the whole programme
on a live two-CD set.
Mariss Jansons was this
year’s conductor, and his
brilliance and precision are
everywhere in evidence.
Robert Stolz’s March of
the United Nations glitters
with Broadway-like
panache. Karl Michael
Ziehrer’s bright-eyed
Viennese Girls waltz
comes with massed male
whistling.
Further novelties include
Émile Waldteufel, Josef
Hellmesberger I, and a
smattering of Strauss
family firsts. Otherwise,
Viennese tradition rules.
What else would one
expect?
Hans Abrahamsen
Let me tell you
Barbara Hannigan
Winter & Winter
aaaae
Hans Abrahamsen’s song-
cycle keeps its gaze on some
far-off vision of ethereal
allure. Soprano Barbara
Hannigan creates elevated
beauties out of Paul Griffiths’
text (created from words
spoken by Shakespeare’s
Ophelia). Andris Nelsons
and the Bavarian Radio
Symphony Orchestra entice
the senses with an iridescent
kaleidoscope of colours.
14 ★ Monday 1 February 2016

Talking Tech Explore more sports

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

Does everyone
have an app The Baseline
inside them?
I suggested here last month that the
killer app everyone is building, if only in
their head, is the modern version of the
novel or screenplay we all imagine
would be huge, if only we had the time to
write it.
But I wonder if a novel/screenplay
may actually be a better easy-money
plan than an app or a tech innovation.
At any one time, there are hundreds
of thousands of writers begging to be
taken seriously. But there seem to be
almost as many tech start-ups.
I was in Turin recently, seeing an
interesting new audio company. I had
never been to the city, imagining it to be
an Italian Detroit. It’s actually superb,
and also has a tech heritage. The world’s
first personal computer, Olivetti’s
Programma 101, which was used to help
plan the Apollo 11 Moon landing, came
Brian Saffer
from Turin. Who knew?
The company I was visiting was in a have to invest time. If I decided to use a start-up hopefuls oddly stubborn,
start-up “incubator” at Turin single product from that Turin resistant to the need to adapt products.
Polytechnic. And it was while scanning incubator, even if it improved my life, it “Adapting to suit the market is
the nameplates of the 52 tenants, all would take effort. So with the best will, I absolutely key,” he says. “Few get this.”
vetted by academics, that I wondered probably won’t bother. He is also sceptical of the ultimate
how likely it was for even one, however Today must be the most innovative/ buzz concept: disruption. Not
good, to succeed. inventive era since the late 19th century. everything, he points out, that’s going to
They ranged from Naboomboo, an Crowdfunding in particular has made be successful needs to be disruptive.
online language lab, to HitYourTix, a development easier than ever. The “A lot of family businesses, process or
ticket finder app, to WaterView, an app beauty of it, is that, unlike proper VCs efficiency innovations are equally valid.
for farmers to gauge the intensity of rain putting in real money, none of the A modest innovation that works
from their phone. funders loses much if a project fails. nationally rather than globally can be
This, remember, was one selection of But is success in tech even remotely very successful.”
start-ups in one small city in a country predictable? Or does technology’s So what’s the view on innovation from JOHN BURN-MURDOCH rounder’s value is to subtract bowling
not quite in the technology premiership. equivalent of the publisher’s slush pile the business angel’s cloud? average from their batting average.
I love real innovations, and mere include thousands of viable ideas, I turned to my friend Dominic, a A genuine Test cricket all-rounder is Why? Their batting average is their
inventions, too, which are a slightly rather than mere whimsies? newbie investor, recently pitched to for a rare and wonderful thing. For one normal contribution in runs; and
lesser thing, but still raise my pulse I asked Professor Mike Wright, head the first time — and getting hot under player to be able to change the course their bowling average is how many
when they are more than just a solution of Innovation and Entrepreneurship at the velvet collar about what he heard. of matches with either bat or ball is runs they concede per wicket taken.
looking for a problem. The trouble with Imperial College Business School in The aspirants were mostly recent an exceptional talent, and England A good all-rounder should therefore
innovation is, however, that it’s London, if he discerns any reliable business school grads, he found. “Think have a rising star in Ben Stokes. have a net average above zero: their
demanding of the consumer. predictor of innovation success. they know it all. No experience, no Already he has taken key wickets, wicket is then worth more than those
To return to my semi-serious He believes getting a technology idea leadership skills, character or hard-won and hit 258, the second-fastest dou- that they take of the opposition.
comparison with fiction, humans have a off the ground is easier than keeping it knowledge. And they don’t like tough ble century ever. England all-rounder Ian Botham’s
greedy, unchanging appetite for stories off the ground, so to speak. questions. When I asked one about his But all-rounders can be a bit of a net average started high — and then
— and it’s never been simpler, since e- “People get obsessed with financing. online tailoring business, he described luxury. Sometimes their bowling or set into a bumpy decline, indicating
publishing, to get yours published in We’re awash with crowdfunding. But Savile Row tailors as ‘labourers’. batting alone is not good enough to his becoming more of an impact
some form. You can even make the film having the entrepreneurial skills to Ignorant and insulting. warrant a place in the team, but their player. Stokes has just completed his
of your screenplay and stick it on match that with potential markets is “A board of six Insead grads and not value lies in their ability to come up 23rd Test, with a net average of
YouTube. Good luck with that; but it’s often missing. People being funded one with menswear experience. And with something special. Will Stokes minus 4.3. His batting average is not
an option. sometimes regard the advice of they wanted £500,000. Thank you. be a luxury impact player, or a more bad. His bowling average of around
People can enjoy fiction, though, entrepreneurs as ‘interference by the Next.” reliable benefit to the team? 38 has room for improvement. Both
without putting themselves out. But to Jonathan Margolis money men’,” he says. jonathan.margolis@ft.com One way of measuring an all- are moving in the right direction.
accommodate a new app or device, you Prof Wright finds the new breed of @TheFutureCritic

980 Today’s temperatures

Abu Dhabi Sun 22 Malta Fair 17
1 1000 Amsterdam Cloudy 12 Manila Sun 32
960
LOW 2
Ankara Cloudy 7 Miami Thunder 26
970 2 Athens Sun 19 Milan Fair 14
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Barcelona Sun 17 Moscow Cloudy 3
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990 0 1010 Beijing Sun 3 Mumbai Sun 31
Belfast Rain 11 Munich Cloudy 14
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5 3 Berlin Rain 12 New York
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1 12 Brussels Cloudy 12 Nice Sun 16
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1020 11 Cairo Sun 19 Oslo Snow 2
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13 Chicago Fair 5 Prague Rain 11
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19 Geneva Fair 14 Strasbourg Cloudy 14
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lasting forever (8) in Weekend FT on February 13
Monday 1 February 2016 ★ 15

Side effect Hepatitis C cure could be Asset accumulation Is it time to halt

bitter pill for Gilead — ANALYSIS, PAGE 17 the rise of ETFs — CHRIS NEWLANDS, FTfm, SEPARATE SECTION

JPMorgan in blockchain trial project Brexit vote

like Russian
3 US bank working with start-up as it explores efforts to cut trading costs 3 Appeal of bitcoin network grows roulette, says
BEN MCLANNAHAN — NEW YORK tors take out their money at short public database of events that is contin- place to start trialling blockchain cial transactions as “one of the greatest
Axa chief
notice, even though the underlying uously maintained and verified in technology, because “the settlement challenges of our time”.
JPMorgan Chase has begun a trial assets can require much more time to “blocks” of records and shared among process is complex with lots of Last week Digital Asset Holdings
project using blockchain as it seeks to sell. various parties. This means payment manual intervention and multiple announced it had raised more than MICHAEL STOTHARD — PARIS
OLIVER RALPH — LONDON
lead banking industry efforts to cut the “To sell a loan is a very cumbersome, ledgers can be instantly updated in parties”. $50m from a group of 13 financial com-
cost and hassle of trading. time-consuming process; settlement multiple locations without a single, A couple of months into the trial, Mr panies including JPMorgan, Citigroup, The head of one of Europe’s largest
The move by JPMorgan, the biggest can take weeks,” said Daniel Pinto, head centralised authority. Pinto, among the leading candidates to Deutsche Börse and the Depository insurers has warned that the British
US bank by assets, is among the clearest of JPMorgan’s investment bank. JPMorgan appears to be taking a lead succeed chief executive Jamie Dimon Trust & Clearing Corporation. referendum on leaving the EU this year
statements of banks’ determination to Exploring alternatives through block- in encouraging broader, industry-wide should he step down in the near term, is Goldman Sachs is in discussions to was akin to the country playing Rus-
explore the potential of blockchain, the chain “makes all the sense in the world; adoption of blockchain technology in a pleased with the progress made. join that latest round of funding, sian roulette “with maybe not six bul-
computer network on which bitcoin it’s easier and faster operationally, and similar way to how Goldman Sachs has “Blockchain will be big in everything according to people familiar with the lets in the barrel but at least four”.
sits. you get fewer mistakes”. led a consortium developing Sym- related to settlement, and not just situation.
The bank is collaborating with Digital Blockchain has caught the imagina- phony, a communications tool. loans. While it is still early days, the Autonomous Research, a New York- Henri de Castries, Axa chief executive,
Asset Holdings, the New York-based tion of the financial services industry Officials at JPMorgan point to the technology looks very good,” he said. based financial services boutique, said that the UK was right that the EU
start-up run by Blythe Masters, the within the past year, with a host of bank’s involvement with the Linux Ms Masters noted that efforts to estimates that global investment was “dysfunctional” and needed
bank’s former head of commodities. groups vowing to find ways to use it to Foundation’s Open Ledger Project, improve the speed of settlement led to banks spend about $50bn a year on change, but added that there would be a
Both are looking at several applications reshape many of their daily operations, which said last month that it was aim- “reduced capital requirements, lower post-trade processes, a figure that severe negative impact on the country if
for the technology, including address- from upgrading old back-office systems ing to create standards that the entire operational costs and an improved cli- could be cut by about one-third it were to leave, particularly on the City
ing liquidity mismatches in JPMorgan’s to automatic execution of contracts. financial services industry could adopt. ent experience”. Previously, she had with greater use of blockchain-type of London.
loan funds, which normally let inves- The technology is essentially a digital Mr Pinto said that loans were a good described reducing the costs of finan- technologies. “There is a school of thought in the UK
that says that the Monday would not be
very different from the Friday [after a
vote to leave]. I disagree, I think it would

New drive
be very different,” he said, in an inter-
view with the Financial Times, speaking
from the group’s offices in central Paris.
Investors await Comments by Mr de Castries, who has
been chief executive of Axa since 2000

details of Google and is one of France’s leading business

figures, make him one of the few conti-

side-bets
nental voices to have spoken out on the
debate, with most reluctant to get
involved or simply assuming a decision
to stay. He said that there would be
“very serious consequences” for the City
Investors are eagerly awaiting the finan- of London in particular following a vote
cial details of Google’s “moonshot” to leave, because the European Central
projects for the first time today, which Bank would not allow London to be the
could propel its market capitalisation hub for euro clearing any more. “You
above that of Apple. break a financial centre faster than you
Investors fretted for years that Google create it,” he warned.
was pouring money indiscriminately Referendums, he said, were also dan-
into wild-sounding ventures such as gerous tools, because they were unpre-
driverless cars and the pursuit of a cure dictable. “People never answer the
for ageing. question asked. The response depends
But with the company — now on their mood. It is like playing Russian
renamed Alphabet — revealing financial roulette with not six bullets in the barrel
details of these moonshot projects but at least four.”
which are expected to be sizeable losses, David Cameron, the UK prime minis-
Wall Street has already decided to turn a ter, is in the midst of tense negotiating to
blind eye. reform Britain’s relationship with the
One benefit of carving out these EU ahead of the vote, which is likely to
numbers, according to Wall Street ana- take place over the summer.
lysts, is that it will make it possible to Mr de Castries said that reform of the
ascribe a separate value to the newer EU was necessary, however. “The UK is
businesses. Added together with a new very right to say that there are things
and more precise valuation for the that should be changed in the union
Google division — source of almost all of because you’d have to be a fool not to
Alphabet’s revenues — and this sum-of- agree that the current state of things is
the-parts analysis could support a pretty dysfunctional,” he said.
higher share price. Wolfgang Münchau page 9
Glass half full reaction page 16 Interview page 18
David Paul Morris/Bloomberg

UK telecoms regulator urges Brussels

to halt proposed O2-Three merger
DANIEL THOMAS — LONDON Ofcom’s intervention will raise fur- siderable investment”. “This is not a
ther doubts about the attempt by Hong broken market,” said Ms White. “Last
The British telecoms regulator has
Kong’s CK Hutchison to acquire O2 from year, UK mobile firms generated £15bn
urged Brussels to block the proposed
Telefónica to merge with Three, the of revenue. Competition, not consolida-
merger of operators O2 and Three,
smallest mobile operator in the UK. tion, has driven investment.”
which it fears will send mobile phone
The £10.5bn acquisition of O2 to cre- While the decision to approve the
bills for users in the UK sharply higher.
ate the UK’s largest mobile operator will merger lies with Margrethe Vestager,
Bill Gates reveals his heart Writing in the Financial Times ahead of this week come under scrutiny by the Europe’s antitrust chief, Ofcom is work-
on ‘Desert Island Discs’ Europe’s first formal statement on the European Commission, which is due to ing with the commission and has influ-
deal, Sharon White, Ofcom chief execu- send out a statement of objections list- ence with its decision makers.
Software billionaire Bill Gates has tive, said that the merger of two of Brit- ing why the merger will damage compe- The proposed merger is seen as a test
become one of very few business ain’s four telecoms operators could also tition in the British mobile market. case for similar deals across Europe,
people to appear on the BBC’s Desert hit rival high street retailers and upset Ofcom has put its arguments to the including in Italy where CK Hutchison is
Island Discs, revealing that his existing network arrangements. commission, according to Ms White, trying to combine its mobile business
relationship with wife Melinda only The arguments opposing the deal and outlined several particular con- with the operator owned by Vimpel-
‘started to get serious’ after watching mark the strongest position taken on cerns. She says that the creation of Com. Ms Vestager has raised concerns
The Sound of Music together. the £10.5bn merger to date by Ms another, fourth network to replace O2 about the effects of reducing the
Sketch i PAGE 16 White, the former Treasury enforcer “might be one answer” for some of her number of operators from four to three.
who became head of Ofcom last year. concerns, but would take “time and con- Sharon White page 9

Companies / Sectors / People

Companies
1MDB.................................................................6
21st Century Fox........................................7
Aabar Investments...................................6
AbbVie...........................................................17
Alphabet.......................................................16
Alstom............................................................18
Amgen............................................................17
Apple...............................................................16
ArcelorMittal...............................................16
AstraZeneca................................................17
Axa..............................................................15,18
BG Group.....................................................22
BP.....................................................................22
BT.....................................................................22
Bank Sepah International.....................2
Barclays...........................................................2
Birla....................................................................6
Bristol-Myers Squibb.............................17
CK Hutchison.............................................15
Calico..............................................................16
Citigroup.........................................................2
Credit Suisse ............................................22
Daimler..........................................................22
Deutsche Bank............................................2
Deutsche Telekom.................................22
Digital Asset Holdings.........................15
EE.....................................................................22
Eni.....................................................................12
Express Scripts.........................................17
Fox News........................................................7
Genting............................................................6
Gilead..............................................................17
GlaxoSmithKline.................................17,22
Google............................................................16
HSBC...............................................................18
Hewlett-Packard.......................................12
Hutchison.......................................................9
Ipic......................................................................6
JPMorgan Chase......................................15
LinkedIn........................................................18
Melli Bank......................................................2
Merck..............................................................17
Microsoft.......................................................16
O2......................................................................15
PayPal.............................................................12
Persia International Bank.....................2
Posco..............................................................16
Royal Dutch Shell...................................22
SSAB................................................................16
Salesforce.....................................................12
Sberbank.......................................................12
Tanjong............................................................6
Tata Steel ...................................................16
Telefónica.....................................................15
Thales.............................................................18
Three...............................................................15
Twitter ............................................................7
US Steel........................................................16
Sectors
Banks................................................................2
Insurance......................................................18
Pharmaceuticals.......................................17
Rail...................................................................18
Technology..................................................16
People
Allen, Paul....................................................16
Banerjee, Mamata.....................................6
Benioff, Marc..............................................12
Birla, SK...........................................................6
Brin, Sergey................................................16
Bush, Jeb........................................................4
Cameron, David........................................12
Carter, Paul..................................................17
Christie, Chris..............................................4
Clinton, Hillary............................................4
Cruz, Ted........................................................4
de Castries, Henri...................................18
Dimon, Jamie..............................................15
Gates, Bill.....................................................16
Gates, Melinda..........................................16
Hollande, François....................................2
Le Pen, Marine............................................2
Macron, Emmanuel.............................2,18
Marcegaglia, Emma................................12
Masters, Blythe.........................................15
Page, Larry..................................................16
Pinto, Daniel...............................................15
Poupart-Lafarge, Henri........................18
Razak, Najib..................................................6
Rothschild, Victor....................................16
Rubio, Marco................................................4
Sanders, Bernie..........................................4
Sorrell, Sir Martin....................................16
Thiam, Tidjane....................................16,22
Trump, Donald............................................4
Whitman, Meg...........................................12
Witty, Andrew...........................................22

© The Financial Times Limited 2016 Week 5

16 ★ FINANCIAL TIMES Monday 1 February 2016

COMPANIES
INSIDE BUSINESS
Industrials
ON MONDAY

Steel sector set for a return to growth Jonathan

Survey predicts tough but
improved 2016 in spite of
contraction in China
MICHAEL POOLER
The global steel industry is expected to
edge back into growth this year in spite
of waning Chinese demand, at a time
when low prices for the metal are cast-
ing a shadow over producers.
Any pick-up in a sector viewed as an
indicator of global economic health will
come after a difficult year that saw the
first annual production decline since
2009. Output shrank by 2.8 per cent in
2015, according to the World Steel Asso-
ciation.
However, several of those polled pre-
dicted a continuation of the tough mar-
ket conditions that have pushed many
producers into losses.
Ingo Schachel of Commerzbank said:
time in the past decade. Four of the
world’s biggest producers — multina-
tional ArcelorMittal, US Steel, SSAB of
Sweden and Tata Steel of India — have
either had their credit rating down-
graded or put on negative outlook by
Standard & Poor’s since November,
while Posco of South Korea recently
posted its first annual loss.
Some relief could come from a
reversal in the surge of cheap exports
from China, which has been seeking
Ford
said its outbound shipments would
remain flat or decrease in 2016, follow-
ing a 20 per cent jump last year.
“Were this to happen, the modest
demand growth increases forecast for
Shaming corporations
0.15%
the US, the EU and other markets
should support operating rate increases
will not make them
Rise in global steel
production in 2016,
as predicted by
and somewhat higher prices. However,
upward price movement will be con-
strained by continued very low raw
pay tax, legislation will
analysts surveyed material prices,” said John Lichtenstein
by the FT
of Accenture.

World production of crude steel will
rise 0.15 per cent in 2016, according to a
Financial Times survey of 18 analysts,
with renewed expansion in the US and
Europe offsetting a second consecutive
year of contraction in China, which
makes nearly half of all steel.
“It will continue to be a challenging year overseas buyers as its economic slow-
for global steel companies. Profit mar- down hits domestic use and which
gins and price levels [are] still very many companies blame for the dra-
unsatisfactory and it’s hard to see a matic fall in prices.
short-term improvement.” With China’s production expected to
A supply glut and faltering demand decline by 2.2 per cent, two-thirds of
made steel cheaper in 2015 than at any analysts who responded to the survey
Technology. Side-bets
The US Steel industry is expected to
2.8% grow by 3 per cent this year following an
Global annual 10.5 per cent contraction in 2015. A
decline of steel more modest uptick of 0.9 per cent is
production in 2015,
the first since 2009 forecast for the EU, where 1.8 per cent
fewer tonnes were produced last year.
Additional reporting by Christian Shepherd
W
henever Google gets into a spot of bother
about how much tax it pays, the US search
company comes up with the same
response. We cough up what we’re
required to by law, it says. You want more?
Well, you’re a democracy; pass some legislation.
The company’s chairman Eric Schmidt made just this
point three years ago during one of Google’s periodic spats
about the paltry sums it pays to Her Majesty’s Revenue &
Customs. “I am rather puzzled by this debate which has
been going on in the UK for some time because I view taxes
as not optional,” he said.
Google wasn’t going to pay tax voluntarily just to

Google ‘moonshots’ win glass half full reaction
Wall Street to overlook losses
from Alphabet units in hope
core business will seem better
RICHARD WATERS — SAN FRANCISCO
Investors fretted for years that Google
was pouring money indiscriminately
into wild-sounding ventures such as
driverless cars and the pursuit of a cure
for ageing.
But when the company, now renamed
Alphabet, reveals financial details of
these “moonshot” projects for the first
time today, Wall Street has already
decided to turn a blind eye to what are
expected to be sizeable losses.
The reason: the bigger the losses from
the side-bets, the stronger the com-
pany’s core internet business will look
and the better investors will feel about
it.
This new “glass half full” view points
to a historic shift in Google’s often
bumpy, 11-year relationship with Wall
Street.
If analysts’ high hopes for today’s
announcement are met, it could even
propel Alphabet’s market capitalisation
above that of Apple, which is less than
3 per cent higher, to make it the world’s
most valuable company on that meas-
ure (it already tops Apple in enterprise
value, another yardstick of corporate
value).
“It got re-rated from a company that
was a black box, that was continually
investing with no responsibility, to one
that will show more discipline,” says
Youssef Squali, an internet analyst at
Cantor Fitzgerald.
Other signs of an uncharacteristic
willingness to bend to investors’
requests, most notably a $5bn share
buy-back announced in October, have
contributed to the mood shift. “There’s
been a sea-change in their relationship
with shareholders,” says Mark
Mahaney, an internet analyst at RBC
Capital Markets.
Most analysts expect Alphabet to
reveal losses from its non-internet busi-
nesses — a segment it has designated
“Other Bets” — of $3bn-$5bn a year.
With the company as a whole forecast to
register operating earnings of about
$19bn for 2015, this suggests that the
side-bets amount to a drag on profits of
between 14-21 per cent.
One benefit of carving out these num-
bers, according to Wall Street analysts,
is that it will make it possible to ascribe a
separate value to the newer businesses.
Add that together with a new and more
precise valuation for the Google division
— source of almost all of Alphabet’s rev-
enues — and this sum-of-the-parts anal-
ysis could support a higher share price.
“What the market has been doing is
assigning negative value to these other
bets,” says Mr Mahaney, compared with
the positive figure of $7bn he puts on
them.
appease an aggrieved British public, Mr Schmidt observed.
It would pay what its lawyers told it to, and not a penny
more.
British governments have tried tweaking the rules to
curb the tactics Google and other US tech companies use to
Learning the Alphabet reduce their tax liabilities. For instance, the Diverted Prof-
its Tax (or “Google tax”) was introduced to frustrate some
of the tricks that annoy the public, notably the shifting of
profits offshore through questionable inter-group charges
to jurisdictions that attract lower rates of tax.
But in spite of the new rules, Google still successfully
maintains that all but a sliver of the value that goes to
achieving its UK sales arises elsewhere. When the com-
pany recently settled with
HMRC over its liabilities, the
Google tax apparently wasn’t
Google wasn’t
even invoked. going to pay tax
And because reforming
corporation tax is so diffi-
just to appease
cult, requiring wholesale an aggrieved
international agreement, it
pretty much exhausts politi-
British public
cians’ ammunition when it
comes to legal combat. Their only recourse is to cut rates to
make avoidance more marginal, and plead with multina-
tionals for a few more crumbs from the groaning board.
There is, however, one simple measure that might allow
the UK to get even. It wouldn’t require a wholesale revision
of the existing system but instead involves reviving a levy
abolished in 1999: Advance Corporation Tax (ACT). It was
introduced in 1973 primarily to reform the taxation of div-
idends and also addressed a similar problem: high rates of
Access/ Nest corporation tax had encouraged multinationals — per-
Google GV X
Fiber Labs fectly legally — to shift profits overseas by shuffling activi-
ties. It was paid at the rate of 30 per cent on dividends, and
could only be offset against corporation tax. Shift too
Operates fiber networks in Maker of home automated Formerly Google Ventures. Research lab working on much profit offshore and you either had to cut your divi-
the US and other internet devices such as Early stage venture capital projects including
access projects Wi-Fi-enabled thermostats fund driverless cars, drones and dend or see your rate of tax go up.
and smoke detectors robotics The new Advance Corporation Sales Tax (ACST) would
be based on a similar principle. Set at a percentage of a
Calico Google Sidewalk company’s UK sales, the levy
Verily would be offset against its
Capital Labs corporation tax payments.
A revival of
Biotech company Formerly Google Life Sciences. Google Capital - ‘Smartcity’ unit run by ACST could be set at varying the Advance
targeting cancer and Health tracking devices such as contact Late stage venture former New York deputy levels for different sectors,
age-related diseases lenses that monitor glucose levels capital fund mayor Dan Doctoroff based on their profitability,
Corporation tax
Contains many and targeted at those, such as would allow the
products including... web services, that are prone
UK to get even
to abuse. UK taxpaying com-
Search YouTube Apps Android Maps panies would be unaffected.
Search engine Video sharing site Gmail and other apps Mobile operating Web mapping Only those that shunted profits abroad would be hit.
for business users system services To see how it would work, take a company such as
Source: FT research Photo: Getty Images
Google, with £4.3bn of UK sales in 2014. Apply ACST at the
rate of, say, 4 per cent and it would have to pay £173m.
However, a shortage of detail will Nest, then adding in the private market force this confidence in the company’s Now if Google declared profits in Britain in line with its 26
make it hard to tell much about the per- investments: the new disclosures today fundamentals. per cent global margin, that would give it £1.1bn on which
formance of the businesses that Alpha- may not provide much more insight to The extra disclosure will only go so it would pay corporation tax of roughly £220m — more
bet hopes will underwrite its growth in help reach a value for these businesses. far, though. Analysts such as Mr Squali than enough to offset the ACST it had already paid. But if it
the long term. Most have yet to produce They could do wonders, however, for still grumble that a true understanding continued to do what it currently does, squirrelling away
revenues, and their results will be aggre- perceptions of the company’s internet of the Google unit is impossible without profits overseas and stumping up just £30m of corporation
gated into combined revenue, cost and operations. Every dollar of losses attrib- a breakdown of its different sources of tax, £143m of that ACST bill would be unrelieved.
capital investment lines. uted to non-core activities will improve revenue, such as display advertising and Importantly, the tax-take would be raised without
Only two — Nest Labs, the maker of the profit margin of the Google unit. The YouTube. undue upheaval. There would be nothing to stop Google,
thermostats and, and Google Fiber, the 49 per cent pro-forma profit margin Meanwhile, investors are hoping that Amazon or Facebook arranging their affairs however they
TV and high-speed internet service that that Alphabet as a whole reported for highlighting the losses from moonshots liked, so long as they paid the ACST. But the new tax would
has been rolled out in three US cities — the first nine months of last year could will have another beneficial effect. stop the exchequer in effect subsidising their research and
are thought to have generated meaning- easily mask a margin of about 55 per Without the ability to hide the losses development and pricing strategies — the mechanisms by
ful revenues. cent in the internet business, says Mr behind booming internet profits, man- which they are pushing their onshore UK competitors
Most analysts concede that others, Squali. agement will face more pressure to jus- steadily to the wall. There would be wrinkles, of course. A
$3 $5
bn- bn such as pharmaceuticals division Calico Equally important, adds Mr tify the spending and demonstrate a low-profit or lossmaking business would need to be able to
Expected total of and the research group called simply X, Mahaney, is the new insight the disclo- financial discipline that Wall Street long recover the ACST against a legitimate UK profit and loss
losses from may have considerable option value, sure will give into the direction of suspected was absent. account. There would be legal challenges — although the
Alphabet’s non- though they are wary about putting a Google’s profit margins. Stripped of the Larry Page and Sergey Brin, the com- system isn’t obviously discriminatory and the old ACT
internet businesses value on them. Alphabet also has signifi- side-bets, investors will be able to see pany’s co-founders, are guaranteed full regime was compatible with the Treaty of Rome.
cant investment holdings, through its more clearly trends in the underlying personal control over Alphabet in the But that shouldn’t deter politicians from exploring the
$19 bn GV venture capital arm and Google Cap- business. Wall Street has already been long term, thanks to their use of three remedy. Those who play by the rules deserve a level field to
Forecast operating
ital growth fund. encouraged by a reacceleration of different classes of stock that cement play on. If the UK wants to collect more, it should stop
earnings for the Mr Mahaney arrived at his $7bn growth in Google’s advertising business their control. But Wall Street will at least pleading and find a law that works.
company as a guesstimate by taking the amount in recent quarters: evidence that profit have a clear view now into the full costs
whole last year Google paid for acquisitions such as margins are also firming would rein- of their outsized ambitions. jonathan.ford@ft.com

Sketch Gates keeps it wholesome as BBC’s ‘Desert Island Discs’ castaway

Let me tell you about the very rich.
They are different from you and me.
But sometimes, pace F Scott Fitzgerald,
not that different.
For example: Bill and Melinda Gates’
relationship “started to get serious”
when they bonded after watching a
video of The Sound of Music together.
Investor Warren Buffett and his first
wife, Susie, once serenaded the couple
with a version of “How Can Love
Survive?”, a tongue-in-cheek duet
about two courting millionaires, from
the stage version of the musical. These
wholesome minor revelations emerged
from Mr Gates’ interview on Desert
Island Discs, broadcast yesterday.
The long-running BBC radio show
dresses up gentle interrogation as an
accolade to persuade high-profile
figures to take part.
It then asks them to imagine being
marooned and to name eight tracks, a
book and a luxury item they would
take with them to the island, and slides
in a few more personal questions.
By and large, business people are the
least comfortable guests. That may be
why, out of 3,063 episodes archived on
the BBC website, only 118 have been
asked to participate since the
programme started in 1942, and that
includes, according to the BBC’s odd
definition, two boxing promoters, the
head of Girlguiding in the UK and the
Duke of Westminster.
Serving chief executives are least
at home on the show.
“Gosh, we’re getting into really,
really, very intimate things here,”
remarked Tidjane Thiam, then head of
UK insurer Prudential, when
unexpectedly probed in 2012 about his
family’s past. But a more usual
outcome is that business guests button
up or are left alone.
In 2006, the closeted BP boss Lord
Browne prepared for the show and
the possibility that he would be asked
if he was gay. He wasn’t. Having missed
the opportunity to come out, he
was finally forced to reveal his
sexuality, and quit his job, the
following year.
Rich list
Billionaire’s choices
David Bowie & Queen Under
Pressure. Willie Nelson Blue Skies.
Ed Sheeran Sing. The Jimi Hendrix
Experience Are You Experienced?
U2 One. The Beatles Two of Us.
Rodgers & Hammerstein How Can
Love Survive? Broadway cast of
Hamilton My Shot. If just one
record Blue Skies. Book The Better
Angels of Our Nature by Steven
Pinker. Luxury DVDs of lectures
from The Teaching Company.
With the cushion of a few years since
he left formal corporate office at
Microsoft and a net worth estimated at
nearly $80bn, Mr Gates seemed more
at ease than most of his counterparts —
but no more candid. The software
billionaire deftly turned away a line of
questioning about the potentially
malign impact of some of the Gates
Foundation’s activities — “It’s
important that big institutions be
subject to criticism”, and he reinforced
a benign interpretation of his
sometimes antagonistic relationship
with the late Steve Jobs. As one of his
tracks, he adopted a song chosen by his
“good friend” to sum up their
relationship, The Beatles’ “Two of Us”.
His other choices also mapped
predictably to the important people in
his life: Ed Sheeran’s “Sing”, inspired by
his teenage daughter; Jimi Hendrix’s
“Are You Experienced?” in honour of
Microsoft co-founder Paul Allen, who
used to taunt his younger friend with
the song.
As for the stock question of how he
would bear up on an isolated atoll, Mr
Gates echoed previous business guests,
from Victor Rothschild to Sir Martin
Sorrell, in claiming that, while he
would enjoy the thinking time, he
would not be a great Robinson Crusoe.
“It wouldn’t be long before I would be
trying to get off the island,” he said.
Andrew Hill
Monday 1 February 2016
Gilead risks
becoming
victim of its
own success
Falling number of potential patients
and Merck competition pose threats
DAVID CROW — NEW YORK
Over the past two years, Gilead, a
California-based drugmaker, has
emerged as the undisputed leader of the
four large US biotechnology companies.
Its hepatitis C medicines, Harvoni and
Sovaldi, set a new record for the most
successful drug launch, thanks in part to
a contentious price tag that works out at
roughly $1,000 per pill.
But the company has also achieved
something that is still quite rare in mod-
ern medicine: a bona fide cure for a
deadly disease that was previously
untreatable in roughly half of patients.
Now some investors and analysts are
asking whether Gilead is about to
become a victim of its own success. The
problem with a cure, especially one that
works in as little as eight weeks, like
Harvoni, is the drugmaker will one day
run out of new patients to treat.
When the company announces 2015
earnings tomorrow, analysts expect it to
report net profits of $17bn on revenues
of $32bn, compared with profits of $3bn
and sales of $11bn in 2013, the year
before the runaway success of its hepati-
tis C launch.
The explosive growth has propelled
the company into the ranks of the
$17bn 18%
Gilead’s forecast Fall in the
net profits for company’s shares
2015 on revenues since the start of
of $32bn January
world’s largest drugmakers, with a mar-
ket capitalisation of $126bn that is
larger than more established names
such as GlaxoSmithKline, AstraZeneca
and Bristol-Myers Squibb.
Yet there is little in the company’s
pipeline of prospective drugs that could
replicate the boost from its hepatitis C
medicines, or mitigate the impact when
sales start to slide.
Hence why Gilead trades on a price to
earnings multiple of 7.6 times, less than
half the level of the next cheapest large
biotech stock, Amgen, which trades at
15.8 times. It is, in the words of one of its
largest investors, “ridiculously cheap”.
Paul Carter, executive vice-president
of Gilead, is candid about the company’s
conundrum.
“There’s this sort of pressure now we
are a $30bn-a-year revenue company,”
says Mr Carter. “People are asking
where the next 8 or 10 per cent of year-
on-year growth is going to come from.”
“We’ve got a really rich pipeline, but
there’s actually not another drug that’s
going to give us tomorrow morning
another $3bn to $5bn [in annual sales],”
he adds.
The announcement on Friday that the
company’s longstanding chief execu-
tive, John Martin, will step aside to
become chairman after more than two
decades at the helm, has not helped
investor sentiment.
Mr Martin joined Gilead in 1990 and
Pharmaceuticals
Rival forces choice of price
cuts or ceding ground
The introduction in 2014 of Gilead’s
hepatitis C treatments, costing
roughly $1,000 per pill, sparked a
nationwide debate on the cost of
prescription drugs in the US, the
world’s largest healthcare system.
Gilead, which already offers big
discounts to health insurers and
employers who pay for prescription
drugs in the US, could be forced to
make fresh price cuts after Merck
brought out a much cheaper rival
medicine last week.
For most hepatitis C sufferers,
Gilead’s drug is still the gold standard:
it is sold as a once-a-day pill; it has a
better safety profile than Merck’s; and
there are fewer side-effects.
Hence Merck’s decision to set a list
price for its drug of $54,600 for a 12-
week course of treatment, versus
$94,500 for Gilead’s Harvoni. Insurers
and employers will probably pay even
less, as they typically demand rebates
in return for access to their patients.
Now Gilead must decide whether to
cede market share to Merck, or to
★ FINANCIAL TIMES 17
COMPANIES
More on ft.com
For the latest
news, comment
and analysis on
the technology
sector, go to
ft.com/technology
Scientists at
Gilead made a
bona fide cure
was appointed to the top job in 1996, a for a deadly
year before Donald Rumsfeld, the disease that
former US defence secretary, started a was previously
four-year stint as chairman. untreatable in
News of Mr Martin’s departure from roughly half of
the chief executive’s office came within patients
hours of a decision by Merck to offer its
new hepatitis C drug at a steep discount
to Gilead’s medicines.
That means that Gilead must contend
not only with a shrinking number of
patients, as more sufferers are cured,
but also the prospect of implementing
price cuts to stop health insurers switch-
ing patients to Merck’s drug.
Shares in Gilead, down 18 per cent
since the start of January, closed 5 per
cent lower on Friday as investors
digested the departure of Mr Martin and
the Merck threat.
The company is also facing a chal-
lenge in HIV, the mainstay of its busi-
ness before it acquired Pharmasset, and
the rights to its hepatitis C drugs, for
$11bn in 2012.
Gilead has been the undisputed leader
in HIV medicines for well over a decade,
but faces a renewed threat from Viiv, a
joint venture between GSK and Pfizer
that is focused solely on developing new
treatments for the virus.
Viiv signalled its intention to compete
more aggressively with Gilead by pur-
chasing Bristol-Myers’ HIV assets for up
to $1.5bn at the end of last year, and GSK
recently abandoned plans to spin off the
unit because of its apparent potential.
The majority of analysts remain
upbeat on Gilead’s prospects, nonethe-
less, pointing out that there are still mil-
lions of untreated hepatitis C patients in
the US, not to mention the rest of the
world.
“Let’s try to put some perspective
around it,” says Michael Yee, an analyst
at RBC Capital Markets, who says a
price-to-earnings ratio as low as Gilead’s
is typically reserved for companies fac-
ing a “patent cliff”, the moment when
their blockbuster drugs face competi-
tion from a cheaper generic version.
Mark Schoenebaum, analyst at Ever-
core ISI, says that Mr Martin’s move to
the chairman role was not a big surprise,
and that his successor, John Milligan,
has been de facto chief executive for
some time.
One way that Gilead could try to sof-
ten the impact of lower sales of its hepa-
titis C drugs is by buying a rival com-
pany with a potential blockbuster medi-
cine.
It has a net cash position of $15bn and
recently raised $10bn of debt, giving it
the firepower to buy one of the smaller
biotech groups, which have become
much cheaper in recent months follow-
ing a sector-wide sell-off.
Last year, the company told the
Financial Times it was on the hunt for
deals.
Mr Carter says the company gets
asked by shareholders and analysts
whether it will make an acquisition
“every five seconds”.
“We’re determined not to do some-
thing stupid,” he says.
make its own defensive price cuts. It
is not the first time Gilead has been
challenged by a cheaper rival. When
AbbVie launched Viekira Pak, it
offered it at a steep discount to
Express Scripts, the largest manager
of prescription drug benefits, in return
for exclusive access to patients.
Analysts said Merck’s decision to
offer its medicine at a big discount
was a sign that pharmaceuticals
companies were adjusting to a new
pricing environment in the US, where
Hillary Clinton, the Democratic
presidential frontrunner, has pledged
to crack down on drug prices.
“The list price of $54,600 is
significantly below that of the
competitors and may raise some
eyebrows,” says Vamil Divan, an
analyst at Credit Suisse. “Merck may
have taken the strategy of a lower
gross price to limit negative headlines
given the ongoing public debate
around drug pricing.”
Michael Yee, an analyst at RBC
Capital Markets, says: “In our opinion,
one might see this headline price as
Merck trying to make sure it is
politically protected, and a public
relations move, knowing there is very
high focus on drug pricing right now.”
18 ★ FINANCIAL TIMES Monday 1 February 2016

COMPANIES

Financials Banks

China equities absorb third of all trade Italian finance

official
Retail investors’ dealings ing sent global equity volumes soaring
55 per cent to a record 27.3bn in 2015,
quially known as “aunties”, who are
widely believed to sometimes rely on
bal membership, including the Shen-
zhen and Shanghai stock exchanges.
Americas, where investment flows fell
nearly 60 per cent.
expects big
during market bubble also
sent volumes soaring 55%
surpassing the levels seen in the finan-
cial crisis. The total value of share trad-
rumours, numerology or feng shui to
make investment decisions.
“Equity trading volumes were solid
last year. The numbers show the impor-
January has been equally tough, with
no IPO in the US in January, the first
interest in
PHILIP STAFFORD
ing rose 41 per cent to $114tn, the WFE
added. Of those totals, the number of
trades in mainland China rose 186 per
They helped fuel a bubble that subse-
quently popped over the summer, when
the Shanghai and Shenzhen exchanges
tance of China in global capital markets
and it’s an importance that is only likely
to grow,” said Nandini Sukumar, chief
time it has happened since 2009.
Volumes of exchange-traded deriva-
tives rose 11.6 per cent, fuelled by
bad loans
Share trading by retail investors in cent to 10.1bn while the value of share lost a combined 45 per cent of their capi- executive of the WFE. increases in the number of commodity
mainland China during last year’s stock trading soared 218 per cent to $43tn. talisation over three months. The soaring numbers offset an une- and currency futures and options. JAMES POLITI — ROME
THOMAS HALE — LONDON
market bubble was so great it accounted The numbers underlined the depth of The Chinese authorities were forced ven year for share trading around the Trading in interest rate futures, used
for more than a third of the total amount participation in the world’s most popu- to temporarily halt trading in hundreds world. The number of initial public by investors for speculation and to A senior Italian finance official has
of equities traded globally. lous country last year. of stocks while government and state- offerings on global markets rose 5.6 per hedge against exposures to currency claimed that strong interest is expected
Annual data compiled by the World With an immature institutional backed institutions also stepped in to cent but the investment flows, as meas- moves, fell 5.2 per cent in the US even as from would-be buyers of distressed
Federation of Exchanges, the trade asso- investment market and strict controls stabilise the market during its collapse. ured by the amount of capital raised, the market prepared for the Fed’s first debt held by the country’s banks,
ciation for the world’s bourses, also on investments from overseas, trading The London-based association’s annual dropped 17 per cent to $202bn. The increase in interest rates in nine years. rejecting concerns that last week’s deal
found that the frenzied buying and sell- is dominated by retail investors, collo- survey takes data from its 68-strong glo- shortfall was particularly marked in the Comment page 11 to let Rome guarantee the loans will fall
flat.
In an interview with the Financial
Insurance. Embracing modernity Times, Alessandro Rivera, director-gen-
eral for the banking and financial sys-
tem at Italy’s finance ministry, said that

Axa excited by scale of technological change while the government guarantee plan
was not a “silver bullet” for its struggling
banks, neither was it inherently flawed.
“The tool will be effective to bridge
the gap that exists between demand and
supply for non-performing loans,” Mr
Chief says accurate data can Rivera said. “It will narrow the distance
help transform his industry and simplify discussions between buy-
ers and sellers, lowering the cost of
and cut life’s risks funding, and we expect to see a growing
number of transactions.”
Italian banks are saddled with about
OLIVER RALPH AND MICHAEL STOTHARD
€350bn in non-performing loans as a
Old meets new at Axa’s Paris headquar- legacy of a lengthy recession, which
ters. The old is an ornate 18th century ended late in 2014. After months of
mansion. Bolted on to it is the new - a negotiation with the EU, an agreement
modern glass fronted office block. Henri was reached last week with Rome to
de Castries has his office firmly in the ensure the loan guarantee scheme does
old part. But, like a growing number of not breach EU competition law.
insurance executives, his conversation The plan is designed to clear one of the
focuses on the new. most persistent clouds hanging over the
The chief executive of Europe’s eurozone’s third-largest economy, with
second-biggest insurer by market capi- the $350bn worth about 17 per cent of
talisation says that the industry is deal- the country’s total loans and the same
ing with technological change unevenly. share of its gross domestic product.
“That is great news,” he adds — it allows That pile of bad loans made the coun-
nimbler operators to win business from try’s financial institutions especially
those slow to embrace change. “Every- vulnerable in the recent market sell-off,
one is threatened . . . and it creates causing alarm among investors and pol-
more fluidity in market shares.” icymakers. Stocks in Italian banks tum-
He wants to put Axa at the forefront of bled last week even after the deal was
the change. A bewildering array of initi- announced.
atives is under way — research labs in The bad loans will not be sold individ-
Silicon Valley and Shanghai, a €200m ually under the new plan but will be
venture capital fund to invest in exter- packaged through securitisation — a
nal start-ups, a new internal incubator market that has been lacklustre in
fund called Kamet with €100m to Europe over recent years — and sold to
invest, partnerships with LinkedIn and private investors.
internal data analysis competitions. “These transactions are not frequent
And the pace is about to pick up. This in Italy, but there is increasing activity,”
year Axa comes to the end of a five-year Henri de Castries hopes “Customers coming to an insurer move into the European economy, kick- He has praise for Emmanuel Macron, Mr Rivera said. “[Securitisation] allows
plan, and a new one will be presented in modernisation will move into the would rather avoid risk than be paid the starting growth in the region. Unfortu- who is France’s reformist economy min- us to streamline the process and indus-
June. “There are three areas for growth,” European economy, kick-starting claim. If you have a much more accurate nately, he says, many countries have ister, for sending the right message, but trialise it and allows the involvement of
he says. “The traditional ones are the growth. He has praise for Emmanuel view of the risk, you will be able to do been proving reluctant to do the neces- not enough has been done. Picking up the rating agencies, which are a key pil-
least powerful going forward.” Macron, below, for sending the right more prevention.” sary surgery on their economies. on a phrase he heard at the World Eco- lar of the scheme.”
The excitement, says Mr de Castries, message — Magali Corouge/ Documentography That does not mean that traditional He is particularly critical of the nomic Forum in Davos, he says: “Talk- Doubts remain about how effective
is in the digital transformation of the avenues of growth will be absent from French socialist government, despite its ing does not cook rice.” the plan will be, as the government’s
business. The industry is moving to a the new strategy. Axa reported a sol- policy reversal about two years ago Closer to home though, Mr de Castries guarantees will only apply to the least
world where instead of having a few vency ratio of 212 per cent in December when it pledged to cut taxes instead of sees new risks threatening both his cli- risky, or senior, tranches of debt that are
data points on which to price risk, there Axa under the new Solvency II rules. raising them. ents and his own company. Cyber given an investment grade rating.
Share price (€)
is now a near unlimited amount that can Although many European rivals have “There is more talk than attacks feature prominently. HSBC, The scheme is also voluntary for Ital-
25
be measured in real time, with black not yet reported their ratios, Axa is action,” he says. “When you where Mr de Castries is about to ian banks, which Fitch, the rating
boxes fitted in cars to measure driving expected to be among the stronger ones. look at what the state is become a non-executive director, agency, suggested last week “may limit
safety only one small example. That will put it in a good position to use spending today in euro suffered its own attack late last take-up”. However, Mr Rivera said there
20
His speech rich with metaphor, Mr de its balance sheet to make acquisitions — compared to last year, it is week. was plenty of appetite from potential
Castries says the industry was “moving in the first half of 2015 it completed more. When compared He says: “Cyber is much higher on buyers, mainly hedge funds and private
from the representation of buffaloes in a 15
deals in Africa, Poland and Brazil. to 2012, it is much my list, both as a worry and as equity firms, and predicted a “snowball
grotto in Alaska by prehistorical paint- But bigger deals are not the priority. more . . . the an opportunity . . . it is the effect” of transactions.
ers to a 3D image. “We know how complex it is to integrate burden on com- biggest source of disruption “We know they have collected large
“It’s much more accurate and 10
other companies. Do you really want to panies is phe- potentially for any indus- amounts of money from their investors:
dynamic, enabling you to have much merge two 19th century factories when nomenal and try. It’s true for govern- the pressure is on them to do something
more accurate and dynamic pricing.” the challenge is to build a 21st century very little ment, utilities and and the money is there,” Mr Rivera said.
And it is not just about using data to 5 factory? One way of consolidating is to flexibility has individuals. Most at “They are extremely interested and we
underwrite more accurately, he says. take others’ market share without buy- been intro- the moment do not are receiving a number of calls for clari-
“It enables you to significantly 2010 11 12 13 14 1516 ing their balance sheet,” he says. duced in the understand it and are fications and will proceed to explain
increase the chances of prevention. He hopes modernisation will also system.” not covered.” [the scheme] better.”

Contracts & Tenders Rail

Alstom on track for international expansion

MICHAEL STOTHARD — PARIS
The new chief executive of the French
train maker Alstom has said the sector
in Europe is ripe for consolidation and
that it would “make sense” for his com-
pany to look at transformational deals.
In his first interview since taking over
the job, Henri Poupart-Lafarge quelled
rumours that any deals were being
actively discussed, but said Alstom
would “size up opportunities if they are
good for the company”.
Mr Poupart-Lafarge was named head
of Alstom, the maker of France’s famed
Visit: ft.com/house&home TGV high-speed train, after a €9.7bn
deal last year in which its much larger
turbine business was sold to the US con-
glomerate GE.
Critics questioned whether Alstom
would be too small to compete with just
€6.1bn in revenues, a third of what it
had before. The Chinese train maker
CRRC has revenue of €25bn.
Emmanuel Macron, the French econ-
omy minister, said last year: “Alstom’s
challenge is to grow . . . The reduction
of its debt [from the sale] should help it
FT PROPERTY
to acquire competitors abroad.”
Tuesday: The Property Market | Saturday: House & Home Mr Poupart-Lafarge, a former civil
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servant, who had led Alstom’s transport
division since 2011, said there was no
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urgent need for deals given the group’s
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strong order book and balance sheet.
But he said sector consolidation was
looking increasingly likely given the
fragmented market, and that Alstom
was well placed to consolidate now it
was a standalone transport company.
Mr Poupart-Lafarge added that barri-
ers to European deals were diminishing
as the EU steadily imposed common
technical standards on train operators.
Siemens, Bombardier and Alstom are
often mentioned as possible partici-
pants in any consolidation. Europe also
still has several independent groups,
Alstom is ready to consolidate after
selling its turbine business
such CAF and Talgo in Spain and Stadler
Rail in Switzerland. Another possible
target for Alstom could be the signalling
business of the French defence and elec-
tronics group Thales, although for the
moment Thales is not a seller.
Dismissing the idea that Alstom is
now too small to compete, Mr Poupart-
Lafarge said: “With revenues of around
€6-€7bn we are big enough to be in all
regions, which is the key when so much
growth is in the emerging markets.”
The TGV maker has a €28bn order
book, more than four times annual
sales, winning €10bn in orders last year.
The company has no net debt and
€2.4bn worth of shares in three joint
ventures with GE in energy in which it
has put options as of 2018.
Mr Poupart-Lafarge said the wider
strategy was to continue to provide a full
range of transport solutions, not just
trains and trams, by selling signalling
systems and maintenance as well.
He also wants to continue to expand
internationally. He envisions the com-
pany eventually taking half of its reve-
nues from outside Europe, compared
with about 40 per cent at the moment.
“Cities with more than 2m people are
all starting to get urban transport sys-
tems, with 100 lining up already in India
and China,” he said. “The potential here
is huge, practically infinite.”
Monday 1 February 2016 ★ FINANCIAL TIMES 19
20 ★ FINANCIAL TIMES Monday 1 February 2016

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-1.097% -1.390% -0.27% -0.20%

2.48% 2.38% 2.47% 2.56% 2.27% 2.80% 2.54% 2.00% 1.997% 0.395%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Dec 30 - Jan 29 Index All World Dec 30 - Jan 29 Index All World Dec 30 - Jan 29 Index All World Dec 30 - Jan 29 Index All World Dec 30 - Jan 29 Index All World Dec 30 - Jan 29 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,078.36 6,274.05 10,860.14 18,873.35 1,961.31
13,142.41 1,912.06
1,940.24 12,815.37 6,083.79
17,518.30
9,798.11

Day 2.48% Month -5.65% Year -3.09% Day 1.83% Month -3.20% Year -12.40% Day 2.56% Month -4.04% Year -11.03% Day 1.64% Month -9.78% Year -8.75% Day 2.80% Month -7.18% Year -1.56% Day 0.27% Month -2.65% Year -2.52%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
5,107.94 1,445.42 9,544.20
43,630.77 21,882.15 2,885.51
42,977.50
1,348.08 8,815.80
4,613.95 19,683.11 2,629.11

Day 2.38% Month -8.47% Year -0.52% Day 2.92% Month 0.55% Year 4.22% Day 2.27% Month -7.62% Year -8.88% Day 2.62% Month -7.71% Year -15.69% Day 2.54% Month -10.20% Year -20.83% Day 2.60% Month -8.56% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
17,720.98 43,349.96 4,637.06 21,661.33 25,960.03
4,417.02 3,572.88
40,405.99 24,870.69
16,466.30
18,657.29 2,737.60
Day 2.47% Month -6.06% Year -4.22% Day 4.60% Month -7.44% Year -15.40% Day 2.19% Month -4.35% Year -4.21% Day 2.57% Month -13.87% Year -9.40% Day 3.09% Month -22.53% Year -17.19% Day 1.64% Month -4.47% Year -15.86%

Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous
Argentina Merval 11306.02 10883.49 Cyprus CSE M&P Gen 67.41 66.81 Italy FTSE Italia All-Share 20340.61 19851.82 Philippines Manila Comp 6687.62 6563.38 Taiwan Weighted Pr 8080.60 7905.10 Cross-Border DJ Global Titans ($) 223.56 219.28
Australia All Ordinaries 5056.60 5028.10 Czech Republic
PX 921.07 909.43 FTSE Italia Mid Cap 31512.27 30967.93 Poland Wig 44290.05 43778.96 Thailand Bangkok SET 1300.98 1288.40 Euro Stoxx 50 (Eur) 3045.09 2979.42
S&P/ASX 200 5005.50 4976.20 Denmark OMXC Copenahgen 20 972.66 949.28 FTSE MIB 18657.29 18189.95 Portugal PSI 20 5065.67 4978.21 Turkey BIST 100 72427.41 72052.86 Euronext 100 ID 874.30 852.85
S&P/ASX 200 Res 2191.90 2152.70 Egypt EGX 30 5986.78 5960.59 Japan 2nd Section 4482.16 4407.26 PSI General 2433.94 2392.80 UAE Abu Dhabi General Index 3910.44 3827.82 FTSE 4Good Global ($) 5092.50 4989.51
Austria ATX 2162.42 2129.45 Estonia OMX Tallinn 881.46 881.23 Nikkei 225 17518.30 17041.45 Romania BET Index 6268.84 6245.39 UK FT 30 2825.80 2755.40 FTSE All World 247.58 242.73
Belgium BEL 20 3486.22 3409.37 Finland OMX Helsinki General 8341.27 8195.45 S&P Topix 150 1177.61 1143.57 Russia Micex Index 1784.92 1771.93 FTSE 100 6083.79 5931.78 FTSE E300 1348.08 1318.22
BEL Mid 5619.49 5530.69 France CAC 40 4417.02 4322.16 Topix 1432.07 1392.10 RTX 745.30 727.13 FTSE 4Good UK 5496.49 5363.10 FTSE Eurotop 100 2665.01 2608.04
Brazil Bovespa 40405.99 38630.19 SBF 120 3492.82 3417.69 Jordan Amman SE 2139.94 2139.02 Saudi-Arabia TADAWUL All Share Index 5879.98 5698.56 FTSE All Share 3335.90 3258.27 FTSE Global 100 ($) 1235.61 1213.27
Canada S&P/TSX 60 754.85 741.32 Germany M-DAX 19478.04 19017.42 Kenya NSE 20 3773.17 3759.86 Singapore FTSE Straits Times 2629.11 2562.45 FTSE techMARK 100 3819.17 3755.55 FTSE Gold Min ($) 953.14 943.88
S&P/TSX Comp 12822.13 12591.93 TecDAX 1688.63 1643.18 Kuwait KSX Market Index 501.04 496.93 Slovakia SAX 309.16 303.56 USA DJ Composite 5717.76 5575.97 FTSE Latibex Top (Eur) 1943.20 1872.90
S&P/TSX Met & Min 277.60 255.52 XETRA Dax 9798.11 9639.59 Latvia OMX Riga 616.05 600.88 Slovenia SBI TOP 688.77 683.78 DJ Industrial 16466.30 16069.64 FTSE Multinationals ($) 1369.85 1367.86
Chile IGPA Gen 18243.46 17755.41 Greece Athens Gen 552.83 542.18 Lithuania OMX Vilnius 485.57 482.21 South Africa FTSE/JSE All Share 49141.94 48702.61 DJ Transport 6906.76 6701.97 FTSE World ($) 439.63 431.14
China FTSE A200 7598.93 7365.61 FTSE/ASE 20 153.40 150.79 Luxembourg LuxX 1298.24 1309.50 FTSE/JSE Res 20 24249.34 24731.43 DJ Utilities 611.35 599.19 FTSEurofirst 100 (Eur) 3789.20 3706.88
FTSE B35 9873.50 9637.56 Hong Kong Hang Seng 19683.11 19195.83 Malaysia FTSE Bursa KLCI 1667.80 1634.53 FTSE/JSE Top 40 44065.55 43746.33 Nasdaq 100 4279.17 4186.06 FTSEurofirst 80 (Eur) 4119.81 4030.57
Shanghai A 2864.76 2778.98 HS China Enterprise 8241.36 8028.58 Mexico IPC 43630.77 42393.02 South Korea Kospi 1912.06 1906.94 Nasdaq Cmp 4613.95 4506.68 MSCI ACWI Fr ($) 367.64 367.05
Shanghai B 344.86 335.36 HSCC Red Chip 3472.35 3381.29 Morocco MASI 8914.20 8870.19 Kospi 200 232.10 231.51 NYSE Comp 9632.71 9397.79 MSCI All World ($) 1532.68 1531.38
Shanghai Comp 2737.60 2655.66 Hungary Bux 23997.31 23778.94 Netherlands AEX 431.28 420.10 Spain IBEX 35 8815.80 8590.60 S&P 500 1940.24 1893.36 MSCI Europe (Eur) 1311.86 1332.83
Shenzhen A 1766.00 1702.80 India BSE Sensex 24870.69 24469.57 AEX All Share 659.88 643.76 Sri Lanka CSE All Share 6340.05 6319.89 Wilshire 5000 19926.10 19434.32 MSCI Pacific ($) 2098.02 2101.37
Shenzhen B 1146.77 1119.22 S&P CNX 500 6339.45 6230.00 New Zealand NZX 50 6170.22 6149.70 Sweden OMX Stockholm 30 1356.32 1333.32 Venezuela IBC 14032.15 14301.95 S&P Euro (Eur) 1369.28 1339.48
Colombia COLCAP 1165.38 1153.46 Indonesia Jakarta Comp 4615.16 4602.83 Nigeria SE All Share 23598.85 23333.34 OMX Stockholm AS 469.40 462.84 Vietnam VNI 545.25 539.47 S&P Europe 350 (Eur) 1380.52 1349.44
Croatia CROBEX 1603.90 1602.60 Ireland ISEQ Overall 6343.24 6214.79 Norway Oslo All Share 603.36 593.93 Switzerland SMI Index 8319.81 8153.27 S&P Global 1200 ($) 1727.59 1692.95
Israel Tel Aviv 100 12.49 12.49 Pakistan KSE 100 31298.60 31193.73 Stoxx 50 (Eur) 2902.41 2837.32
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Jan 29 %Chg %Chg Jan 29 %Chg %Chg Jan 29 %Chg %Chg Jan 29 %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
Amazon.com 85.8 587.00 -48.35 Royal Dutch Shell 241.4 1521.00 25.00 Novartis N 630.8 69.86 0.00 Mitsubishi Ufj Fin,. 1469.9 609.40 -17.60 Anglo American 277.45 22.4 -7.3 Nmc Health 969.00 23.4 15.3 Lonmin 54.75 34.4 -34.4 Oil & Gas Producers 5814.79 7.6 2.1
Facebook Class A 70.0 112.21 3.10 Bg 236.5 1054.50 10.50 Roche Gs 610.7 232.79 0.00 Toyota Motor 1454.0 7200.00 317.00 Glencore 89.48 13.9 -1.1 Acacia Mining 206.20 18.1 14.6 Enquest 15.50 24.0 -18.4 Mining 6780.70 6.9 -8.0
Apple 62.3 97.34 3.25 Bp 212.5 376.10 7.65 Santander 581.5 3.93 0.10 Sumitomo Mitsui Fin,. 1005.9 3980.00 -70.00 Sage 621.00 12.0 2.9 Tullow Oil 171.60 16.1 3.6 Petra Diamonds 88.50 23.8 1.1 Tobacco 47915.60 6.7 3.7
Microsoft 45.8 55.09 3.04 Glaxosmithkline 193.3 1439.00 24.50 Nestle N 580.8 66.02 0.00 Mizuho Fin,. 772.2 205.80 -3.50 Royal Dutch Shell 1521.00 9.6 -1.4 Vedanta Resources 244.10 14.8 -11.3 Nanoco 45.00 15.4 -21.7 Food Producers 8679.70 5.9 -2.3
Avago 33.9 133.71 7.34 Hsbc Holdings 183.7 492.30 14.65 Total 403.5 40.92 0.71 Fanuc 749.2 15810.00 -2305.00 Royal Dutch Shell 1518.00 9.4 -0.5 Ted Baker 3009.00 14.0 0.7 Soco Int 159.75 15.3 8.5 Food & Drug Retailers 2668.07 5.9 5.6
Gilead Sciences 30.5 83.00 -4.53 Royal Dutch Shell 180.6 1518.00 23.00 Allianz Se Vna O.n. 347.2 144.65 0.00 Softbank . 679.0 5265.00 166.00 Fresnillo 722.00 9.1 2.0 Talktalk Telecom 220.20 13.3 1.3 Kaz Minerals 114.75 13.6 12.2 Software & Computer Services 1622.20 5.9 -1.9
Alphabet Class A Common Stock 28.6 761.35 13.05 Vodafone 173.1 223.90 8.60 Unicredit 330.9 3.55 0.02 Fast Retailing Co., 624.9 38430.00 1310.00 Randgold Resources Ld 4967.00 9.0 19.9 Crest Nicholson Holdings 570.00 12.9 2.3 Stock Spirits 133.00 13.0 -4.7 Oil Equipment & Services 13073.49 5.4 -0.3
Alphabet Class C Capital Stock 25.2 742.95 11.99 British American Tobacco 162.1 3897.00 128.50 Intesa Sanpaolo 328.9 2.62 0.10 Fuji Heavy Industries 617.3 4856.00 337.00 Old Mutual 169.70 8.5 -5.1 Betfair 4385.00 12.7 12.4 Brammer 169.00 12.9 -7.3 Personal Goods 26918.44 4.6 3.7
Visa 25.1 74.49 5.16 Sabmiller 142.9 4182.50 12.50 Daimler Ag Na O.n. 328.8 63.89 0.00 Sony 525.0 2523.00 145.00 Tesco 173.40 8.0 16.0 Jimmy Choo 139.00 11.9 -1.6 Spirent Communications 74.00 11.7 3.5 Electricity 8404.12 4.5 -5.0
Bank Of America 22.5 14.14 0.61 Astrazeneca 138.9 4487.50 140.50 Eni 325.8 13.28 0.11 Mitsubishi Estate , 469.1 2367.50 221.00 Compass 1203.00 7.8 2.4 Greencore 388.80 10.5 9.7 Tribal 24.75 11.2 3.1 Household Goods 16180.09 3.7 -2.3
Bg 1054.50 7.6 7.1 Dairy Crest 652.00 9.3 -4.1 Oxford Instruments 729.50 10.9 -4.9 Health Care Equip.& Services 7030.05 3.0 -3.4
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
British American Tobacco 3897.00 7.5 3.3 Cranswick 2089.00 9.2 8.9 British Polythene Industries 695.00 10.3 0.4 Gas Water & Multiutilities 6075.32 2.9 2.0
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Consol Energy 7.94 1.19 17.63 Nmc Health 969.00 75.50 8.45 Rwe Ag 10.13 1.46 16.90 Tokyu Fudosan Holdings 781.00 100.00 14.68 Ashtead 899.00 -9.2 -19.7 Melrose Industries 297.30 -84.4 -85.1 Premier Oil 19.00 -56.1 -60.8 Forestry & Paper 12236.26 -7.3 -15.1
Micron Technology 11.03 1.15 11.58 Jimmy Choo 139.00 9.00 6.92 B. Sabadell 1.66 0.18 11.98 Tokyo Tatemono Co., 1282.00 152.00 13.45 Shire 3910.00 -7.5 -16.8 Just Eat 373.40 -12.3 -24.4 Avon Rubber 799.50 -18.1 -19.2 Automobiles & Parts 6518.53 -5.2 -10.0
Westrock 35.28 3.63 11.47 Smith (ds) 365.70 22.60 6.59 Altice B 13.63 1.33 10.77 Yamato Holdings Co., 2617.50 284.50 12.19 Mondi 1136.00 -7.0 -14.8 Nostrum Oil & Gas 275.00 -6.7 -32.1 Rps 182.25 -13.7 -23.1 General Retailers 2855.83 -0.9 -5.1
Seagate Technology 29.05 2.30 8.58 Tullett Prebon 335.40 20.30 6.44 Altice 13.24 1.11 9.15 Sumitomo Realty & Development Co., 3338.00 354.50 11.88 Easyjet 1548.00 -5.6 -11.0 Pendragon 39.61 -6.2 -15.3 Flybe 74.00 -12.7 -19.1 Fixed Line Telecommunication 5433.77 -0.4 1.5
Qorvo 39.60 2.93 7.99 Dairy Crest 652.00 38.50 6.28 B.popular 2.48 0.16 6.95 Mitsubishi Estate , 2367.50 221.00 10.30 Kingfisher 326.10 -5.5 -1.0 Firstgroup 93.00 -5.7 -13.3 Johnston Press 35.25 -7.8 -30.0 Banks 3404.62 -0.3 -11.2
Gkn 278.80 -4.8 -9.6 Home Retail 136.70 -5.5 37.3 Carpetright 392.75 -7.6 -18.8 Technology Hardware & Equip. 1222.77 -0.2 -4.4
Downs Downs Downs Downs
Carnival 3480.00 -4.0 -10.0 Hastings Holdings 160.60 -4.9 -3.8 Stv 460.00 -7.1 -10.7 Industrial Engineering 6705.04 0.5 -6.7
Amazon.com 587.00 -48.35 -7.61 Nostrum Oil & Gas 275.00 -11.80 -4.11 Grifols Sa 14.99 -14.40 -48.99 Fanuc 15810.00 -2305.00 -12.72
Royal Bank Of Scotland 252.70 -3.6 -16.3 Paypoint 790.00 -4.8 -14.3 Fenner 106.00 -7.0 -25.9 Chemicals 9961.92 0.5 -7.8
Electronic Arts 64.55 -5.25 -7.52 Home Retail 136.70 -5.80 -4.07 Svenska Handelsbanken Ab 11.38 -2.06 -15.35 Shinsei Bank, 186.00 -23.00 -11.00
Standard Chartered 471.00 -3.6 -16.4 Entertainment One 150.50 -4.7 -9.9 Biotech Growth Trust (the) 602.50 -6.7 -18.6 Beverages 15702.56 0.7 1.6
Gilead Sciences 83.00 -4.53 -5.18 Circassia Pharmaceuticals 290.00 -10.00 -3.33 Arcelormittal 3.48 -0.22 -5.87 Fuji Electric Co., 413.00 -34.00 -7.61
Int Consolidated Airlines S.a. 539.50 -3.5 -11.6 Dfs Furniture 315.00 -4.5 -5.2 Int Biotechnology Trust 430.00 -6.4 -20.6 General Industrials 4261.00 0.8 -3.2
Eastman Chemical 61.21 -1.85 -2.93 Indivior 151.10 -3.60 -2.33 Roche Holding Ag 231.57 -7.22 -3.02 Nec 316.00 -25.00 -7.33
Barclays 186.00 -2.5 -15.0 Worldwide Healthcare Trust 1681.00 -4.5 -13.3 Exova 130.75 -5.3 -9.7 Real Estate & Investment Servic 2794.79 0.9 -9.1
Netflix 91.84 -2.57 -2.72 Pendragon 39.61 -0.81 -2.00 Yara Int 34.63 -0.72 -2.04 Resona Holdings, . 547.50 -28.00 -4.87
Tui Ag 1186.00 -2.5 -2.1 Poundland 141.90 -4.3 -31.7 Connect 146.00 -4.6 -13.2 Support Services 6420.72 0.9 -5.9
Based on the constituents of the S&P500 and the Nasdaq 100 index Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Jan 29 Currency Mid Change Mid Change Mid Change Jan 29 Currency Mid Change Mid Change Mid Change Jan 29 Currency Mid Change Mid Change Mid Change Jan 29 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 13.9079 0.0179 15.0491 -0.1459 19.7284 -0.2573 Indonesia Indonesian Rupiah 13775.0000 -99.5000 14905.2844 -272.7233 19539.8750 -423.4723 Poland Polish Zloty 4.0826 -0.0039 4.4175 -0.0528 5.7911 -0.0887 ..Three Month 0.7050 0.0100 0.7626 0.0025 - -
Australia Australian Dollar 1.4137 0.0029 1.5297 -0.0137 2.0054 -0.0246 Israel Israeli Shekel 3.9557 0.0024 4.2802 -0.0444 5.6111 -0.0770 Romania Romanian Leu 4.1949 0.0416 4.5390 -0.0043 5.9504 -0.0254 ..One Year 0.7053 0.0100 0.7620 0.0025 - -
Bahrain Bahrainin Dinar 0.3772 0.0001 0.4081 -0.0044 0.5350 -0.0075 Japan Japanese Yen 121.0650 2.3700 130.9986 1.1524 171.7307 0.9465 Russia Russian Ruble 75.2013 -1.6200 81.3717 -2.6668 106.6730 -3.8612 United States United States Dollar - - 1.0821 -0.0119 1.4185 -0.0203
Bolivia Bolivian Boliviano 6.9000 - 7.4662 -0.0821 9.7877 -0.1404 ..One Month 121.0649 2.3699 130.9986 1.1525 171.7306 0.9464 Saudi Arabia Saudi Riyal 3.7515 - 4.0593 -0.0446 5.3215 -0.0763 ..One Month - - 1.0820 -0.3568 1.4185 -0.0203
Brazil Brazilian Real 4.0196 -0.0510 4.3494 -0.1036 5.7017 -0.1552 ..Three Month 121.0647 2.3695 130.9986 1.1525 171.7304 0.9458 Singapore Singapore Dollar 1.4233 -0.0035 1.5401 -0.0207 2.0190 -0.0339 ..Three Month - - 1.0818 -0.3568 1.4185 -0.0203
Canada Canadian Dollar 1.4073 -0.0010 1.5227 -0.0178 1.9962 -0.0300 ..One Year 121.0634 2.3670 130.9986 1.1525 171.7306 0.9448 South Africa South African Rand 15.9000 -0.3056 17.2046 -0.5235 22.5542 -0.7633 ..One Year - - 1.0806 -0.3568 1.4188 -0.0203
Chile Chilean Peso 710.3000 -1.3350 768.5816 -9.9103 1007.5606 -16.3747 Kenya Kenyan Shilling 102.4000 0.1500 110.8021 -1.0541 145.2544 -1.8679 South Korea South Korean Won 1198.9000 -9.6500 1297.2723 -24.8190 1700.6398 -38.2814 Venezuela Venezuelan Bolivar Fuerte 6.3050 0.0195 6.8223 -0.0537 8.9436 -0.1002
China Chinese Yuan 6.5788 0.0029 7.1186 -0.0751 9.3320 -0.1297 Kuwait Kuwaiti Dinar 0.3040 0.0005 0.3289 -0.0031 0.4312 -0.0055 Sweden Swedish Krona 8.5750 0.0660 9.2785 -0.0299 12.1636 -0.0796 Vietnam Vietnamese Dong 22230.0000 -20.0000 24054.0736 -286.3023 31533.3071 -481.1379
Colombia Colombian Peso 3294.1500 -14.1000 3564.4423 -54.6131 4672.7531 -87.3202 Malaysia Malaysian Ringgit 4.1550 -0.0520 4.4959 -0.1063 5.8939 -0.1594 Switzerland Swiss Franc 1.0247 0.0109 1.1087 -0.0003 1.4535 -0.0052 European Union Euro 0.9242 0.0101 - - 1.3109 -0.0043
Costa Rica Costa Rican Colon 536.2900 0.7600 580.2937 -5.5484 760.7274 -9.8194 Mexico Mexican Peson 18.1678 -0.1438 19.6585 -0.3734 25.7710 -0.5765 Taiwan New Taiwan Dollar 33.3375 -0.2520 36.0729 -0.6723 47.2892 -1.0410 ..One Month 0.9241 0.0100 - - 1.3109 -0.0043
Czech Republic Czech Koruna 24.9748 0.2753 27.0240 0.0041 35.4268 -0.1121 New Zealand New Zealand Dollar 1.5456 -0.0003 1.6724 -0.0188 2.1924 -0.0320 Thailand Thai Baht 35.7325 -0.0975 38.6644 -0.5317 50.6866 -0.8674 ..Three Month 0.9239 0.0101 - - 1.3108 -0.0043
Denmark Danish Krone 6.8968 0.0750 7.4628 0.0000 9.7832 -0.0324 Nigeria Nigerian Naira 199.0500 -0.2000 215.3825 -2.5867 282.3524 -4.3382 Tunisia Tunisian Dinar 2.0510 0.0159 2.2192 -0.0071 2.9093 -0.0189 ..One Year 0.9228 0.0101 - - 1.3101 -0.0043
Egypt Egyptian Pound 7.8306 0.0201 8.4731 -0.0712 11.1076 -0.1305 Norway Norwegian Krone 8.7277 0.0843 9.4438 -0.0116 12.3802 -0.0563 Turkey Turkish Lira 2.9598 -0.0157 3.2026 -0.0523 4.1984 -0.0827
Hong Kong Hong Kong Dollar 7.7829 -0.0080 8.4214 -0.1014 11.0400 -0.1700 Pakistan Pakistani Rupee 104.8950 -0.0300 113.5018 -1.2807 148.7936 -2.1777 United Arab Emirates UAE Dirham 3.6731 0.0005 3.9744 -0.0431 5.2102 -0.0740
Hungary Hungarian Forint 287.3204 -0.3070 310.8956 -3.7539 407.5640 -6.2884 Peru Peruvian Nuevo Sol 3.4707 0.0043 3.7555 -0.0366 4.9232 -0.0645 United Kingdom Pound Sterling 0.7050 0.0100 0.7628 0.0025 - -
India Indian Rupee 67.8775 -0.3375 73.4470 -1.1767 96.2842 -1.8668 Philippines Philippine Peso 47.6500 -0.0850 51.5598 -0.6598 67.5915 -1.0919 ..One Month 0.7050 0.0100 0.7628 0.0025 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries Jan 29 Jan 28 Jan 27 Jan 26 Jan 25 Yr Ago High Low Year to date percentage changes Closing Week's Closing Week's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 2825.80 2755.40 2783.90 2753.90 2736.40 0.00 2875.90 2642.30 Food & Drug Retailer 6.61 Software & Comp Serv -1.87 Real Est Invest & Tr -5.50 FTSE 100 Price Change FTSE 100 Price Change
Jan 29 chge% Index Jan 28 Jan 27 ago yield% Cover ratio adj Return FT 30 Div Yield 1.76 1.81 1.79 1.81 1.81 0.00 3.93 2.74 Personal Goods 4.20 Food Producers -1.90 Electronic & Elec Eq -5.54 3I Group PLC 442.00 6.00 Kingfisher PLC 326.10 -18.90
FTSE 100 (100) 6083.79 2.56 6209.74 5931.78 5990.37 6749.40 4.09 1.47 16.69 3.26 4769.44 P/E Ratio net 25.36 24.72 24.96 24.67 24.61 0.00 19.44 14.26 Tobacco 4.07 Leisure Goods -2.47 Support Services -5.69 Aberdeen Asset Management PLC 246.50 14.40 Land Securities Group PLC 1095 2.00
FTSE 250 (250) 16487.72 1.80 16829.05 16196.55 16280.98 16305.77 2.76 1.93 18.77 15.43 11486.16 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Oil & Gas Producers 2.60 FTSE 100 Index -2.54 FTSE SmallCap Index -5.82 Admiral Group PLC 1774 98.00 Legal & General Group PLC 243.50 5.50
FTSE 250 ex Inv Co (209) 17920.11 1.90 18291.09 17585.38 17676.42 17596.20 2.79 2.03 17.69 13.89 12727.73 FT 30 hourly changes Oil & Gas 2.49 Pharmace & Biotech -2.63 Travel & Leisure -5.94 Anglo American PLC 277.45 50.75 Lloyds Banking Group PLC 65.46 -1.40
FTSE 350 (350) 3387.97 2.43 3458.11 3307.59 3337.59 3687.53 3.86 1.52 17.02 2.05 5353.80 8 9 10 11 12 13 14 15 16 High Low Gas Water & Multi 2.31 Health Care -2.70 Construct & Material -6.06 Antofagasta PLC 380.20 8.00 London Stock Exchange Group PLC 2474 12.00
FTSE 350 ex Investment Trusts (309) 3365.99 2.46 3435.67 3285.12 3315.20 3667.33 3.89 1.53 16.84 1.92 2738.66 2755.4 2782.8 2791.3 2785.3 2789.3 2792.5 2794.3 2806.9 2803.4 2825.8 2755.4 Fixed Line Telecomms 2.11 Nonlife Insurance -2.92 Industrial Eng -6.66 Arm Holdings PLC 993.00 -2.50 Marks And Spencer Group PLC 424.10 5.50
FTSE 350 Higher Yield (107) 3116.12 2.56 3180.63 3038.24 3055.32 3599.36 5.60 1.28 13.89 2.01 5050.66 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Beverages 1.88 Technology -2.93 Chemicals -7.42 Ashtead Group PLC 899.00 -91.00 Merlin Entertainments PLC 413.70 4.70
FTSE 350 Lower Yield (243) 3336.12 2.29 3405.19 3261.34 3302.57 3415.47 2.05 2.20 22.18 1.87 3533.14 Consumer Goods 1.66 FTSE All{HY-}Share Index -3.15 Mining -7.62 Associated British Foods PLC 3150 155.00 Mondi PLC 1136 -86.00
FTSE SmallCap (288) 4364.76 1.05 4455.12 4319.36 4311.18 4420.09 3.01 1.39 23.91 8.40 5995.26 Telecommunications 1.42 Consumer Services -3.18 Basic Materials -8.02
FTSE SmallCap ex Inv Co (153) 3952.24 0.58 4034.06 3929.28 3906.03 3840.79 2.98 1.85 18.11 6.02 5698.29 FX: EFFECTIVE INDICES Mobile Telecomms 0.95 Industrial Transport -3.23 Life Insurance -8.43
Astrazeneca PLC 4487.5 127.00 National Grid PLC 985.80 43.90
Aviva PLC 480.80 8.80 Next PLC 6925 115.00
FTSE All-Share (638) 3335.90 2.38 3404.96 3258.27 3286.57 3621.81 3.83 1.52 17.19 2.17 5332.89 Utilities 0.88 Health Care Eq & Srv -3.47 Financials -8.51
Jan 28 Jan 27 Mnth Ago Jan 29 Jan 28 Mnth Ago Babcock International Group PLC 915.00 -18.50 Old Mutual PLC 169.70 13.30
FTSE All-Share ex Inv Co (462) 3301.10 2.43 3369.44 3222.94 3251.49 3588.85 3.87 1.53 16.86 1.95 2730.39 Oil Equipment & Serv -0.56 Tech Hardware & Eq -4.03 Real Est Invest & Se -8.81 Bae Systems PLC 516.00 23.30 Pearson PLC 789.00 31.50
FTSE All-Share ex Multinationals (573) 1132.82 2.44 958.34 1105.87 1118.70 1163.36 2.96 1.56 21.65 1.02 1932.86 Australia 89.97 89.62 91.91 Sweden 79.47 79.80 80.18 NON FINANCIALS Index -1.21 Electricity -4.59 Financial Services -9.17 Barclays PLC 186.00 -4.75 Persimmon PLC 2036 125.00
FTSE Fledgling (100) 7369.30 0.49 7521.86 7333.05 7324.62 6997.51 2.60 1.28 30.03 11.43 13299.82 Canada 83.49 83.54 84.80 Switzerland 156.06 156.37 159.87 Media -1.63 Industrials -4.85 Automobiles & Parts -9.60 Barratt Developments PLC 599.50 27.00 Provident Financial PLC 2938 44.00
FTSE Fledgling ex Inv Co (50) 10286.96 0.25 10499.92 10261.26 10232.06 8728.61 2.70 1.67 22.12 5.35 18042.84 Denmark 106.36 106.22 105.78 UK 88.27 87.84 90.93 Household Goods & Ho -1.80 General Retailers -4.96 Banks -10.83 Berkeley Group Holdings (The) PLC 3535 70.00 Prudential PLC 1367.5 42.50
FTSE All-Small (388) 3027.88 1.02 3090.56 2997.23 2991.66 3057.00 2.99 1.39 24.16 5.77 5339.96 Japan 130.24 130.51 127.81 USA 106.21 106.54 105.76 Aerospace & Defense -1.86 Equity Invest Instr -5.33 Forestry & Paper -14.84 Bg Group PLC 1054.5 74.30 Randgold Resources LD 4967 412.00
FTSE All-Small ex Inv Co Index (203) 2952.61 0.57 3013.74 2935.86 2918.84 2852.01 2.97 1.85 18.25 4.38 5393.59 New Zealand 110.24 111.25 115.71 Euro 87.43 87.19 86.26 FTSE 250 Index -5.41 Industrial Metals & -15.18 Bhp Billiton PLC 676.40 27.50 Reckitt Benckiser Group PLC 6234 187.00
FTSE AIM All-Share Index (849) 693.70 0.86 708.06 687.78 686.14 690.34 1.61 0.64 96.87 0.55 747.18 Norway 85.07 85.17 83.89
BP PLC 376.10 23.40 RELX PLC 1230 44.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 3897 271.50 Rio Tinto PLC 1714 60.50
Oil & Gas (18) 6138.56 1.68 6265.64 6037.06 5921.14 7350.26 6.13 0.20 81.63 0.00 5141.44 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 740.00 9.50 Rolls-Royce Holdings PLC 555.00 12.00
Oil & Gas Producers (11) 5842.75 1.67 5963.70 5746.87 5640.01 7000.01 6.15 0.16 100.42 0.00 5060.14 Bt Group PLC 484.85 -2.40 Royal Bank Of Scotland Group PLC 252.70 -9.40
Oil Equipment Services & Distribution (7)13571.45 2.06 13852.40 13296.88 12804.99 15948.83 5.61 1.41 12.64 0.00 9981.24 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 1868 68.00 Royal Dutch Shell PLC 1518 131.00
Basic Materials (28) 2522.21 0.65 2574.43 2505.99 2508.98 4569.62 8.13 1.88 6.55 1.30 2474.35 Burberry Group PLC 1195 14.00 Royal Dutch Shell PLC 1521 133.00
Chemicals (7) 10659.83 2.26 10880.51 10423.99 10595.07 11968.63 2.69 2.27 16.39 35.08 9193.30 Jan 29 No of US $ Day Mth YTD Total
YTD Gr Div Jan 29 No of US $ Day Mth YTD Total YTD Gr Div Capita PLC 1175 13.00 Royal Mail PLC 459.20 10.50
Forestry & Paper (1) 13352.01 1.07 13628.43 13210.97 13739.88 13974.95 2.70 3.37 10.97 0.00 13869.71 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Carnival PLC 3480 -145.00 Rsa Insurance Group PLC 416.40 11.10
Industrial Metals & Mining (2) 620.48 5.71 633.33 586.96 604.86 1696.09 1.86 -18.64 -2.89 0.00 541.49 FTSE Global All Cap 7741 414.21 0.1 -8.6 -8.1 -8.2 567.23
2.7 Oil & Gas 166 288.35 2.8 2.8 -5.4 440.86 -5.4 4.4 Centrica PLC 204.80 -2.40 Sabmiller PLC 4182.5 -7.00
Mining (18) 6511.60 0.29 6646.41 6493.10 6463.88 13066.83 9.59 1.85 5.64 0.00 3343.17 FTSE Global All Cap 7102 426.01 0.3 -8.6 -8.1 -8.2 573.14
2.7 Oil & Gas Producers 116 270.41 2.7 2.7 -5.2 420.68 -5.2 4.4 Coca-Cola Hbc AG 1429 58.00 Sage Group PLC 621.00 66.50
FTSE Global Large Cap 1415 367.57 0.2 -8.2 -7.7 -7.8 514.94
2.9 Oil Equipment & Services 41 261.46 4.0 4.0 -5.8 365.01 -5.7 4.2 Compass Group PLC 1203 87.00 Sainsbury (J) PLC 245.10 11.50
Industrials (119) 4153.80 2.13 4239.79 4067.17 4103.36 4389.84 2.68 1.21 30.91 1.31 4128.85
Construction & Materials (14) 5048.70 3.03 5153.22 4900.00 5038.69 4450.14 2.33 -0.81 -53.18 0.00 5159.01 FTSE Global Mid Cap 1640 549.39 -0.1 -9.0 -8.7 -8.7 717.99
2.3 Basic Materials 261 313.62 0.0 0.0 -10.7 459.84 -10.7 3.8 Crh PLC 1854 10.00 Schroders PLC 2724 61.00
Aerospace & Defense (9) 4228.22 1.93 4315.75 4148.12 4142.21 5127.55 2.71 1.04 35.47 1.32 4372.45 FTSE Global Small Cap 4686 566.73 0.0 -9.9 -9.6 -9.6 719.34
2.2 Chemicals 122 527.62 -0.1 -0.1 -10.8 775.89 -10.8 2.9 Dcc PLC 5405 370.00 Severn Trent PLC 2189 65.00
General Industrials (6) 3461.31 2.42 3532.97 3379.41 3426.57 3155.38 3.30 1.67 18.20 0.00 3768.23 FTSE All-World 3055 242.73 0.2 -8.4 -7.9 -8.0 350.70
2.8 Forestry & Paper 16 173.42 -1.1 -1.1 -11.5 278.55 -11.5 3.9 Diageo PLC 1884.5 27.00 Shire PLC 3910 -318.00
Electronic & Electrical Equipment (10) 5076.60 1.75 5181.70 4989.47 5027.16 5022.31 2.43 1.90 21.61 0.00 4495.88 FTSE World 2539 431.14 0.1 -8.2 -7.7 -7.8 836.40
2.8 Industrial Metals & Mining 67 223.16 -0.3 -0.3 -13.3 328.63 -13.3 3.7 Direct Line Insurance Group PLC 374.60 8.40 Sky PLC 1082 34.00
Industrial Engineering (14) 7136.46 1.14 7284.20 7055.72 7053.15 9132.69 4.20 1.57 15.11 10.28 8368.35 FTSE Global All Cap ex UNITED KINGDOM In 7417 425.54 0.1 -8.5 -8.1 -8.2 574.68
2.6 Mining 56 296.43 0.6 0.6 -8.4 434.40 -8.4 7.2 Dixons Carphone PLC 473.70 8.80 Smith & Nephew PLC 1162 37.00
Industrial Transportation (8) 3808.60 1.50 3887.45 3752.43 3813.73 4098.11 3.98 0.94 26.75 0.00 3204.06 FTSE Global All Cap ex USA 5743 382.75 -0.2 -8.5 -8.2 -8.3 555.87
3.2 Industrials 534 273.64 0.1 0.1 -8.5 380.75 -8.4 2.5 Easyjet PLC 1548 -92.00 Smiths Group PLC 943.50 35.50
Support Services (58) 6290.57 2.15 6420.80 6158.21 6209.15 6485.89 2.42 1.52 27.31 2.30 6314.89 FTSE Global All Cap ex JAPAN 6479 421.91 0.2 -8.6 -8.0 -8.1 582.91
2.8 Construction & Materials 109 388.72 0.0 0.0 -7.2 565.68 -7.2 2.3 Experian PLC 1190 39.00 Sports Direct International PLC 415.60 -6.40
FTSE Developed 2103 393.30 0.1 -8.2 -7.7 -7.8 542.66
2.7 Aerospace & Defense 28 462.95 0.6 0.6 -8.6 638.17 -8.5 2.3 Fresnillo PLC 722.00 60.50 Sse PLC 1450 65.00
Consumer Goods (40) 18605.33 2.64 18990.50 18127.45 18257.43 17256.77 2.95 1.77 19.10 0.57 13125.32
FTSE Developed All Cap 5731 411.39 0.1 -8.4 -8.0 -8.0 561.48
2.7 General Industrials 56 200.53 0.5 0.5 -7.6 300.41 -7.2 2.8 Gkn PLC 278.80 -14.00 St. James's Place PLC 953.00 44.00
Automobiles & Parts (1) 6551.93 0.18 6687.57 6540.18 6589.53 8662.27 3.05 1.53 21.42 0.00 6025.42
FTSE Developed Large Cap 915 364.67 0.1 -8.1 -7.5 -7.6 510.03
2.8 Electronic & Electrical Equipment 69 278.15 -1.4 -1.4 -12.1 356.56 -12.1 2.2 Glaxosmithkline PLC 1439 47.50 Standard Chartered PLC 471.00 -17.50
Beverages (6) 15718.42 1.46 16043.82 15492.42 15659.22 15097.11 2.43 1.72 23.86 0.00 10706.19
FTSE Developed Europe Large Cap 219 305.16 -1.0 -8.2 -7.4 -7.5 481.26
3.8 Industrial Engineering 104 486.66 -0.3 -0.3 -9.2 666.12 -9.1 3.0 Glencore PLC 89.48 10.90 Standard Life PLC 363.50 -0.40
Food Producers (10) 8748.88 3.20 8930.00 8477.96 8484.86 8321.91 1.87 1.39 38.29 3.94 7324.83
FTSE Developed Europe Mid Cap 304 469.07 -0.5 -8.9 -8.5 -8.5 672.17
2.8 Industrial Transportation 96 451.80 0.7 0.7 -8.7 626.45 -8.7 2.7 Hammerson PLC 583.50 14.00 Taylor Wimpey PLC 192.40 10.90
Household Goods & Home Construction (13)13535.72 2.21 13815.93 13243.61 13382.08 11111.57 2.15 2.54 18.28 0.00 9207.96
FTSE Dev Europe Small Cap 720 664.77 -0.2 -9.3 -9.1 -9.1 927.81
2.5 Support Services 72 255.61 0.0 0.0 -7.3 341.84 -7.3 2.1 Hargreaves Lansdown PLC 1363 42.00 Tesco PLC 173.40 12.85
Leisure Goods (2) 5342.86 1.47 5453.47 5265.29 5309.30 4789.72 4.48 1.32 16.88 0.00 4525.07
FTSE North America Large Cap 317 405.04 0.7 -7.8 -7.1 -7.2 533.94
2.4 Consumer Goods 423 394.26 0.3 0.3 -5.3 561.28 -5.3 2.6 Hikma Pharmaceuticals PLC 2018 32.00 Travis Perkins PLC 1825 17.00
Personal Goods (6) 23436.71 3.81 23921.90 22575.78 22879.00 23624.42 2.79 3.22 11.13 1.04 15121.30
FTSE North America Mid Cap 394 580.96 -0.1 -9.9 -9.2 -9.3 717.78
2.0 Automobiles & Parts 103 334.57 -0.9 -0.9 -12.3 457.36 -12.3 2.9 HSBC Holdings PLC 492.30 12.75 Tui AG 1186 -30.00
Tobacco (2) 47915.68 3.48 48907.64 46305.41 46323.58 43928.12 4.16 1.18 20.42 0.00 29200.90
FTSE North America Small Cap 1516 575.80 -0.1 -11.0-10.2 -10.2 692.26
2.0 Beverages 48 560.48 0.7 0.7 -2.0 808.67 -2.0 2.5 Imperial Tobacco Group PLC 3786 229.50 Unilever PLC 3085 166.00
Health Care (19) 9232.88 2.08 9424.02 9044.88 9260.60 9783.33 3.79 3.53 7.48 0.18 6732.21
FTSE North America 711 269.44 0.6 -8.2 -7.4 -7.5 363.97
2.3 Food Producers 106 534.87 0.7 0.7 -4.3 783.56 -4.2 2.3 Inmarsat PLC 1100 27.00 United Utilities Group PLC 956.50 37.50
Health Care Equipment & Services (7) 7119.28 2.26 7266.66 6961.73 7117.91 6805.67 1.60 2.16 29.01 1.60 6037.54
FTSE Developed ex North America 1392 207.99 -0.6 -8.3 -8.2 -8.2 324.02
3.3 Household Goods & Home Construction 47 382.16 0.6 0.6 -4.8 542.36 -4.5 2.4 Intercontinental Hotels Group PLC 2297 7.00 Vodafone Group PLC 223.90 4.45
Pharmaceuticals & Biotechnology (12)12466.73 2.06 12724.82 12214.92 12507.84 13342.68 3.99 3.58 7.00 0.00 8074.36
FTSE Japan Large Cap 177 296.44 -0.8 -8.7 -9.5 -9.5 370.83
2.2 Leisure Goods 28 119.27 -2.0 -2.0 -9.5 153.54 -9.5 1.5 International Consolidated Airlines Group S.A. 539.50 -19.50 Whitbread PLC 4000 35.00
Consumer Services (96) 4758.00 2.34 4856.50 4649.12 4698.38 4807.36 2.40 1.57 26.60 7.19 4301.51 FTSE Japan Mid Cap 303 456.17 -0.3 -5.8 -7.2 -7.2 551.18
1.7 Personal Goods 80 580.50 0.9 0.9 -2.9 787.18 -2.8 2.0
Food & Drug Retailers (7) 2781.80 3.63 2839.39 2684.24 2630.11 3257.08 1.92 -1.50 -34.60 0.00 3181.01 Intertek Group PLC 2830 55.00 Wolseley PLC 3463 -23.00
FTSE Global wi JAPAN Small Cap 782 483.83 -0.1 -6.3 -8.1 -8.1 603.41
1.9 Tobacco 11 1223.24 1.3 1.3 0.5 2390.43 0.5 3.9 Intu Properties PLC 299.00 4.80 Worldpay Group PLC 313.00 9.50
General Retailers (32) 2795.54 1.45 2853.42 2755.61 2793.48 2925.81 2.60 2.24 17.21 1.98 3066.42
FTSE Japan 480 123.99 -0.7 -8.1 -9.1 2.1 Health Care
-9.1 174.28 173 418.08 -2.3 -2.3 -8.8 582.65 -8.7 2.0 Itv PLC 266.80 4.60 Wpp PLC 1517 50.00
Media (22) 7390.66 3.07 7543.67 7170.61 7253.27 7066.66 2.77 1.56 23.19 1.47 4364.24
FTSE Asia Pacific Large Cap ex Japan 530 488.48 0.6 -9.5 -9.7 -9.7 730.83
3.6 Health Care Equipment & Services 61 603.42 -2.1 -2.1 -7.1 692.17 -7.1 1.1 Johnson Matthey PLC 2465 18.00
Travel & Leisure (35) 8322.32 1.86 8494.61 8170.17 8306.57 8239.74 2.09 1.92 24.82 29.43 7612.38
FTSE Asia Pacific Mid Cap ex Japan 431 677.98 0.5 -8.7 -9.2 -9.2 978.36
3.2 Pharmaceuticals & Biotechnology 112 315.52 -2.3 -2.3 -9.3 456.89 -9.3 2.3
Telecommunications (7) 4055.29 4.00 4139.24 3899.34 4021.91 3900.65 4.03 0.18 135.33 0.00 4249.35 FTSE Asia Pacific Small Cap ex Japan 1427 457.55 0.3 -7.4 -8.3 -8.3 651.49
3.0 Consumer Services 386 365.24 0.5 0.5 -6.3 474.79 -6.2 1.8
Fixed Line Telecommunications (5) 5520.21 3.88 5634.49 5314.03 5448.39 4798.11 2.81 1.74 20.48 0.00 4787.41
Mobile Telecommunications (2) 5148.35 4.08 5254.93 4946.39 5123.10 5280.20 4.88 -0.44 -46.59 0.00 4815.09
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
961
2010
387.92
517.30
0.6
1.0
-9.4
-9.9
-9.6
-9.4
-9.7 616.87
3.6 Food & Drug Retailers
-9.4 738.03
3.5 General Retailers
53 281.66
121 501.76
-0.2
1.3
-0.2
1.3
-6.0 381.22
-5.8 636.34
-5.9
-5.8
2.0
1.6
UK STOCK MARKET TRADING DATA
Utilities (7) 8473.52 2.37 8648.94 8277.56 8377.75 9012.66 4.79 1.36 15.33 33.42 9061.56 FTSE Emerging Large Cap 500 486.86 1.1 -10.2 -9.6 -9.6 698.83
3.6 Media 87 271.47 0.0 0.0 -6.2 353.60 -6.1 2.0 Jan 29 Jan 28 Jan 27 Jan 26 Jan 25 Yr Ago
Electricity (2) 8385.04 1.71 8558.63 8243.84 8248.42 9475.92 6.03 1.34 12.35 145.17 11362.30 FTSE Emerging Mid Cap 452 650.27 1.0 -8.9 -8.3 -8.4 923.51
3.1 Travel & Leisure 125 353.42 0.3 0.3 -7.4 463.95 -7.3 1.8 SEAQ Bargains 4506.00 4982.00 4571.00 5143.00 5260.00 5260.00
Gas Water & Multiutilities (5) 8029.15 2.53 8195.37 7831.15 7948.18 8409.39 4.49 1.37 16.29 5.49 8590.56 FTSE Emerging Small Cap 1058 557.45 0.4 -9.1 -9.4 -9.5 766.60
3.3 Telecommunication 92 153.92 -0.4 -0.4 -2.3 271.92 -1.9 4.3 Order Book Turnover (m) 63.19 55.92 - 49.42 - -
Financials (285) 4183.53 2.64 4270.14 4075.95 4116.43 4740.11 3.92 1.87 13.64 4.02 3657.37 FTSE Emerging Europe 99 256.38 2.7 -5.2 -3.9 -4.0 376.77
4.4 Fixed Line Telecommuniations 44 133.57 -0.3 -0.3 0.8 258.76 1.5 4.7 Order Book Bargains 996250.00 981073.00 15.00 977310.00 39.00 39.00
Banks (9) 3361.72 2.91 3431.31 3266.72 3303.25 4229.51 4.89 1.37 14.98 0.00 2317.33 FTSE Latin America All Cap 243 544.37 1.2 -10.5 -9.0 -9.1 804.88
4.0 Mobile Telecommunications 48 154.11 -0.7 -0.7 -6.4 245.92 -6.4 3.8 Order Book Shares Traded (m) 1685.00 1473.00 0.00 1308.00 1.00 1.00
Nonlife Insurance (11) 2751.78 1.82 2808.74 2702.48 2729.41 2335.46 2.73 2.06 17.73 0.00 4624.66 FTSE Middle East and Africa All Cap 219 566.68 1.9 -10.2 -8.3 3.1 Utilities
-8.4 845.25 161 235.28 0.9 0.9 -0.8 431.72 -0.7 4.0 Total Equity Turnover (£m) 3452.16 3005.07 - 0.00 0.00 0.00
Life Insurance/Assurance (11) 7270.61 3.63 7421.12 7015.93 7093.22 8226.83 4.17 1.59 15.10 0.00 6674.50 FTSE Global wi UNITED KINGDOM All Cap In 324 304.01 0.0 -8.7 -7.5 4.0 Electricity
-7.6 480.74 110 257.33 1.0 1.0 -0.6 467.40 -0.4 3.8 Total Mkt Bargains 1152199.00 1095729.00 260.00 9.00 46.00 46.00
Index- Real Estate Investment & Services (21) 2812.42 1.45 2870.64 2772.15 2797.99 2759.78 2.26 5.73 7.73 0.57 7231.61 FTSE Global wi USA All Cap 1998 460.89 0.4 -8.6 -8.0 2.2 Gas Water & Multiutilities
-8.1 591.32 51 248.74 0.8 0.8 -1.2 467.61 -1.1 4.4 Total Shares Traded (m) 4815.00 4945.00 35.00 0.00 1.00 1.00
Real Estate Investment Trusts (25) 2791.50 2.49 2849.29 2723.62 2749.90 2972.37 3.16 5.94 5.33 6.48 3306.56 FTSE Europe All Cap 1402 351.71 -0.8 -8.4 -7.7 3.5 Financials
-7.8 537.82 674 177.13 0.0 0.0 -11.8 275.44 -11.7 3.4 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 7342.88 2.66 7494.89 7152.50 7238.06 7622.40 3.16 2.19 14.45 28.97 7999.75 FTSE Eurobloc All Cap 639 330.19 -1.2 -8.4 -7.8 3.3 Banks
-8.0 510.94 243 155.06 0.2 0.2 -13.1 256.99 -13.0 3.9 (c) Market closed.
Equity Investment Instruments (176) 7295.77 1.31 7446.81 7201.16 7232.40 7647.55 2.79 1.07 33.45 15.75 3845.07 FTSE RAFI All World 3000 3005 4986.86 0.1 -8.6 -8.0 3.4 Nonlife Insurance
-8.1 6288.30 70 196.91 0.0 0.0 -8.2 274.22 -8.1 2.5
Non Financials (353) 3935.05 2.30 4016.51 3846.71 3878.52 4208.96 3.80 1.40 18.83 2.15 5513.86 FTSE RAFI US 1000 995 8178.10 0.5 -8.1 -7.4 2.8 Life Insurance
-7.5 10353.03 51 173.02 0.3 0.3 -12.7 262.54 -12.7 3.3
Technology (19) 1399.32 2.84 1428.29 1360.64 1398.78 1276.04 1.44 1.98 34.92 0.17 1750.04 FTSE EDHEC-Risk Efficient All-World 3055 292.26 0.1 -7.6 -7.3 2.5 Financial Services
-7.4 393.07 141 192.53 -0.8 -0.8 -13.4 256.66 -13.4 2.3 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1811.54 1.57 1849.04 1783.48 1809.68 1399.89 1.97 1.82 27.83 0.48 2375.31 FTSE EDHEC-Risk Efficient Developed Europe 523 260.29 -0.7 -7.2 -6.7 2.9 Technology
-6.8 380.14 185 160.32 1.2 1.2 -8.0 191.33 -8.0 1.9 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (6) 1527.22 3.95 1558.84 1469.26 1527.45 1582.07 1.00 2.25 44.54 0.00 1753.11 Software & Computer Services 85 291.95 2.5 2.5 -5.9 335.16 -5.8 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 100 113.21 -0.3 -0.3 -10.4 139.00 -10.3 2.8 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 6005.11 5993.66 6001.48 5987.64 5996.65 6000.33 6000.45 6040.81 6030.70 6083.79 5977.73 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 16327.00 16275.81 16343.82 16315.45 16339.35 16371.25 16381.74 16433.85 16405.38 16487.72 16242.64 (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 4327.94 4338.38 4337.38 4335.73 4346.64 4359.75 4361.59 4367.36 4378.15 4379.18 4327.94
FTSE All-Share 3295.03 3288.57 3294.26 3287.19 3292.23 3295.26 3295.71 3315.37 3310.20 3335.90 3281.43 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:16:46:03 Day's Low11:26:15 FTSE 100 2010/11 High: 6242.32(01/01/2016) Low: 5673.58(20/01/2016) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:16:48:17 Day's Low08:46:00 FTSE 100 2010/11 High: 3444.26(01/01/2016) Low: 3123.43(20/01/2016)
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Blenheim Natural Resources Int 0.005 - 0.069L 0.075L 0.09L 0.11L - - - - - date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- entu (UK) Pre 99.033 92.268 7.484 7.893 4.2 10.3 2.67 - May 6 5.34 - 12/24 144.00 AIM DNL Diurnal Group PLC 146.00 0.00 155.00 147.80 7622.8
94p Nil 23-02-16 167.50 155.25 Chemring Group PLC 167.50 8.50 Formation Group Pre 23.764 7.941 2.203 0.099L 0.8 0.3L - - - - -
Hazel Renewable Energy VCT 1 Pre 0.58 0.366 0.107L 0.303L 0.4L 1.3L - 5 - - 5
Hazel Renewable Energy VCT 2 Pre 0.58 0.37 0.125L 0.32L 0.5L 1.4L - 5 - - 5
Invesco Perpetual Select Trust Int 1.771L 5.383 243 241 1.2 1.3 Nov 13 3.85 3.75
ITM Power Int 0.655 0.521 3.17L 3.678L 1.6L 2.2L - - - - -
Plutus PowerGen Int 0.363 - 0.184L 0.846L 0.03L 0.29L - - - - -
Premier Veterinary Group Pre 2.254 - 1.592L 0.734L 10.9L 35L - - - - -
Rank Group (The) Int 352.7 343.3 42.7 36.3 10.6 11.3 1.8 1.6 Mar 22 5.8 4.75
Sky Int 5718 4302 414 1208 21 65 12.55 12.3 Apr 21 33.05 32.3

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Monday 1 February 2016 ★ FINANCIAL TIMES 21

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AT&T♦ 36.06 0.92 36.45 30.97 4.88 40.60 221841.12 Lockheed 211.00 -1.04 227.91 181.91 2.66 20.00 64839.35
ANZ 24.18 1.07 37.25 23.08 9.94 10.11 49901.04 Nokia 6.60 -0.11 7.87 4.91 2.05 -46.99 28515.2 AstellasPh 1650 150.00 2047 1499.5 1.84 22.61 30281.32 AtlasCpcoB 174.20 -5.20 270.00 168.50 1.65 15.82 7927.3 AutomData 83.09 1.98 90.67 64.29 2.21 29.53 38321.66 Lowes♦ 71.66 1.16 78.13 64.22 1.31 24.63 65576.4
BHPBilltn 15.35 1.15 34.29 14.06 14.69 18.44 34871.9 SampoA 44.40 0.09 49.40 40.38 4.24 15.27 26846.49 Bridgestne 4336 501.00 5182 3753.5 2.62 13.28 29121.64 Ericsson 75.40 -4.75 120.00 73.25 4.32 24.10 29061.03 Avago Tech 133.71 9.20 150.50 99.16 1.06 29.41 36969.42 Lyondell 77.97 -0.52 107.32 69.10 3.56 8.94 35043.13
CmwBkAu 78.67 1.86 96.69 70.15 7.36 15.18 95019.95 France (€) Canon 3342 180.00 4539 3162 4.53 17.60 36818.55 H&M 279.40 -15.90 368.50 273.20 3.25 22.98 53927.67 BakerHu 43.51 1.47 70.45 37.58 1.46 -74.50 18974.13 Marathon Ptl 41.79 -1.04 60.38 38.95 2.40 7.06 22272.99
CSL 104.00 -3.57 108.68 81.48 1.31 27.88 34046.37 Airbus Grpe 57.82 0.87 68.50 46.56 2.00 16.54 49134.51 CntJpRwy 22105 3040 24800 18255 0.51 15.69 37613.1 Investor 285.70 -1.70 363.40 271.40 3.02 14.49 25382.96 BankAm 14.14 0.58 18.48 12.94 1.32 11.32 147232.46 Marsh&M♦ 53.33 1.04 59.99 50.81 2.56 20.75 27819.5
NatAusBk 27.66 0.84 39.71 26.39 9.44 12.18 51610.95 AirLiquide 95.22 -1.16 123.95 90.77 2.49 20.08 35460.14 Denso 5160 343.00 6548 4815 2.26 16.76 37680.54 Nordea Bk 85.90 -2.90 115.50 82.80 6.47 10.44 40570.6 Baxter 36.60 0.53 43.44 32.18 4.29 11.71 20020.85 MasterCard♦ 89.03 1.03 101.76 74.61 0.67 29.25 97953.79
Telstra 5.63 0.11 6.74 5.06 7.46 16.75 48687.09 AXA 22.77 0.32 26.02 20.12 3.87 11.75 59783.85 EastJpRwy 10990 1349 12815 9065 1.08 21.52 35630.24 SEB 82.30 1.40 111.50 75.95 5.53 10.72 20827.24 BB & T 32.66 0.71 41.90 30.99 2.92 12.92 25479.71 McDonald's 123.78 5.38 124.35 87.50 2.57 28.63 113658.49
Wesfarmers 42.17 1.02 46.95 36.65 7.67 19.95 33591.24 BNP Parib 43.73 -0.73 61.00 42.14 3.31 7.85 58969.87 Fanuc 15810-1910.00 28575 15625 4.63 15.93 26894.2 SvnskaHn 107.30 4.80 426.00 95.85 3.72 14.62 23422.12 BectonDick 145.37 0.61 157.50 128.87 1.55 46.34 30842.53 McGraw Hill 85.02 -0.48 109.13 79.64 1.42-247.31 22980.91
Westpc 30.85 0.96 40.07 29.10 7.91 13.72 72792.31 ChristianDior 155.80 3.50 195.35 140.80 1.88 12.68 30636.22 FastRetail 38430 3820 61970 34540 0.84 47.45 33671.26 Swedbank 179.10 1.50 223.90 165.10 6.07 13.27 23643.55 BerkshHat 194360.05 2964.06 227450 186900 - 14.98 157651.07 McKesson 160.98 -9.20 243.61 152.22 0.62 17.52 36797.93
Woolworths 24.28 0.40 34.71 22.42 8.02 14.55 21827.62 Cred Agr 9.20 -0.08 14.49 8.69 3.68 20.34 26262.75 Fuji Hvy Ind 4856 601.00 5223 3669 2.12 11.70 31401.28 TeliaSonera 40.33 0.59 55.85 37.54 7.12 12.58 20365.38 Biogen 273.06 4.14 480.18 254.00 - 19.05 60865.92 Medtronic 75.92 0.00 79.50 55.54 1.66 47.31 106755.34
Belgium (€) Danone 63.45 3.84 67.74 51.73 2.20 45.10 44966.46 Hitachi 586.40 13.80 908.00 547.10 1.94 12.14 23411.75 Volvo 77.55 -1.25 120.50 72.20 3.70 17.30 14677.5 BkNYMeln♦ 36.22 1.07 45.45 34.24 1.76 16.74 39586.74 Merck 50.67 -0.68 62.15 45.69 3.33 14.35 141548.83
AnBshInBv 115.85 4.40 124.20 87.73 2.50 24.07 201602.35 EDF 12.04 0.12 24.89 10.96 9.64 6.82 25015.4 HondaMtr 3341 179.00 4499 3161 2.49 11.61 49989.54 Switzerland (SFr) BlackRock 314.26 13.70 382.84 275.00 2.52 17.25 51536.3 Metlife 44.65 0.46 58.23 40.77 3.04 9.24 49634.12
KBC Grp 52.79 -0.24 66.00 47.09 3.66 9.02 23881.77 Engie SA 14.70 0.28 20.08 13.61 6.32 42.47 38722.86 JapanTob 4661 867.00 4848 3185.5 2.07 21.40 76999.96 ABB 17.57 0.80 22.16 15.94 - 16.97 39691.64 Boeing 120.13 -4.48 158.83 115.02 2.70 16.12 80485.13 Microsoft 55.09 2.80 56.85 39.72 2.25 40.73 440054.14
Esslr Intl 114.35 3.10 125.15 93.87 0.83 42.99 26782.73 KDDI 3008 308.00 8550 2519 1.89 16.63 66858.3 CredSuisse 18.00 0.01 28.94 17.21 3.75 8.61 34385.22 BrisMySq♦ 62.16 -2.24 70.87 51.82 2.23 62.70 103700.68 Mnstr Bvrg 135.03 -9.13 160.50 114.70 - 49.98 27373.61
Brazil (R$)
Hermes Intl 313.55 9.70 365.55 280.10 0.87 38.17 35817.32 Keyence 55920 1180 70100 50700 0.35 29.04 28084.45 Nestle 75.20 3.10 77.00 65.70 2.89 16.85 233999.58 Broadcom 54.67 0.63 58.51 40.21 0.92 25.37 30669.87 MondelezInt 43.10 1.50 48.58 33.97 1.35 8.99 68493.12
Ambev 18.66 1.81 20.46 15.99 8.36 24.42 72966.04
LOreal 157.55 7.05 181.30 140.40 1.59 32.33 95418.67 MitsbCp 1905.5 183.00 2837 1722 2.73 10.83 25026.98 Novartis 78.50 -4.40 103.20 76.65 3.43 27.64 205088.53 CapOne 65.62 4.52 92.10 58.49 2.00 9.85 34912.81 Monsanto 90.60 -1.27 126.00 81.22 2.09 25.33 39896.2
Bradesco 19.59 1.09 32.40 17.90 4.71 7.21 12302.95
LVMH 148.20 5.05 176.60 130.75 2.01 14.08 81491.09 MitsubEst 2367.5 319.50 2975 2048 0.60 45.56 27190.06 Richemont 66.25 1.90 87.55 60.85 2.37 21.77 33750.55 CardinalHlth 81.37 -0.22 91.91 74.76 1.68 21.76 26769.19 MorganStly♦ 25.88 0.27 41.04 24.67 1.81 17.00 50109.48
Cielo 33.87 1.42 46.27 31.50 1.92 17.06 15897.75
Nmrcble-SFR 36.55 1.94 60.01 32.19 - -46.53 17332.16 MitsubishiEle 1099.5 46.00 1718 1037 2.32 10.85 19500.67 Roche 263.90 -1.40 283.90 241.10 3.00 25.71 180945.98 Carnival 48.13 -1.44 55.77 42.51 2.01 29.00 28402.02 MylanNV 52.69 -0.42 76.69 37.59 - 31.40 25910.15
ItauHldFin 22.62 0.78 32.66 21.49 5.35 5.33 17147.22
Orange 16.33 0.50 16.98 12.21 3.41 46.27 46805.57 MitsuiFud 2803 383.50 3879 2419.5 0.95 24.33 22954.31 Swiss Re 94.80 2.20 99.75 76.85 4.57 38.50 34297.58 Caterpillar♦ 62.24 1.26 89.62 56.36 4.32 13.72 36238.23 Netflix 91.84 -8.88 133.27 58.46 - 262.01 39251.34
Petrobras 6.93 0.72 16.26 5.67 - -2.74 12831.31
PernodRic 107.95 4.75 117.75 88.00 1.41 35.87 31003.24 MitUFJFin 609.40 14.40 936.80 572.00 2.80 5.85 71321.19 Swisscom 507.50 18.50 580.50 463.20 4.26 18.95 25657.04 CBS 47.50 0.56 63.95 38.51 1.18 16.38 20600.88 NextEraE 111.71 5.11 111.86 93.74 2.54 17.11 51446.47
Vale 9.72 0.69 27.89 8.63 23.79 -4.30 7779.74
Renault 77.93 -1.15 100.25 59.59 2.26 9.07 24936.58 Mizuho Fin 205.80 6.80 280.40 191.00 3.56 7.25 42289.57 Syngent 375.90 14.90 435.20 288.50 2.88 25.84 34097.76 Celgene 100.32 -8.49 140.72 92.98 - 53.69 79306.99 Nike 62.01 1.13 68.20 45.35 1.09 31.99 83707.09
Canada (C$) Murata Mfg 13695 -140.00 22220 12520 1.38 14.27 25482.05 CharlesSch 25.53 -0.30 35.72 24.37 0.88 27.46 33610.84 NorfolkS 70.50 1.91 112.05 66.51 3.11 13.61 21049.17
Safran 59.66 1.02 72.45 54.00 1.87 -19.50 26921.44 UBS 16.83 0.00 22.57 15.07 4.38 10.60 63228.28
BCE 56.43 1.06 60.20 51.56 4.47 18.85 34710.56 NipponTT 5028 601.00 5066 3430 1.79 18.75 87066.22 ChevrnTx 86.47 2.93 112.93 69.58 4.64 20.05 162739.71 Northrop 185.06 0.95 193.99 152.31 1.52 19.06 33751.81
Sanofi 76.55 0.35 101.10 70.94 3.46 22.50 108152.27 Zurich Fin 225.80 1.40 334.60 212.80 - 11.48 33144.07
BkMontrl♦ 75.22 1.47 80.76 64.01 4.26 11.59 34382.63 Nissan Mt 1180 144.00 1350 996.00 3.01 9.57 44062.64 Chubb 113.07 3.03 134.49 94.35 2.19 14.75 36655.2 NXP 74.78 0.06 114.00 66.93 - 27.58 18825.98
Sant Gbn 37.94 0.55 44.84 34.98 1.52 27.40 23025.4 Taiwan (NT$)
BkNvaS 57.39 2.92 67.72 51.17 4.65 10.38 49091.83 Nomura 650.00 81.60 909.20 568.20 3.35 9.65 20523.42 Cigna 133.60 -4.30 170.68 105.23 0.03 17.48 34419.09 Occid Pet 68.83 5.03 83.74 58.24 4.00 -9.30 52567.94
Schneider 49.11 -0.07 75.29 45.57 3.63 18.29 31224.81 Chunghwa Telecom 103.00 2.50 103.00 93.10 4.47 21.24 23967.49
Brookfield 42.29 1.36 48.64 38.13 1.43 11.47 29685.07 Nppn Stl 2126 138.50 3505 1987.5 2.89 9.23 16688.41 Cisco 23.79 0.42 30.31 22.47 3.17 13.88 121023.37 Oracle 36.31 1.51 45.24 33.13 1.48 18.52 152546.3
SocGen 35.18 -0.71 48.77 33.69 3.30 10.02 30690.8 HonHaiPrc 77.80 5.10 99.70 72.70 4.41 8.56 36495.23
CanadPcR 168.40 2.66 245.05 140.02 0.82 19.08 18303.16 NTTDCMo 2527 261.50 2873.5 1955 2.62 22.30 85282.65 Citigroup♦ 42.58 1.52 60.95 39.44 0.26 10.25 126845.41 Pepsico 99.30 3.45 103.44 76.48 2.56 31.51 144665.28
Total 40.92 1.66 50.30 36.16 5.86 116.10 108657.32 MediaTek 214.00 4.00 498.00 195.50 9.75 11.06 10088.31
CanImp 91.24 3.16 102.90 82.19 4.66 10.41 25770.97 Panasonic 1114 57.00 1853.5 1044.5 1.39 83.23 22572.19 CME Grp 89.85 5.08 100.87 81.87 2.05 25.67 30390.26 Perrigo 144.58 -4.00 215.73 138.74 0.31 152.92 21166.81
UnibailR 232.00 3.35 262.00 212.30 3.90 14.18 24775.74 TaiwanSem 143.00 8.00 155.00 112.50 2.98 12.86 111227.33
CanNatRs 29.99 3.93 42.46 21.27 3.00 77.56 23328.54 Seven & I 5312 581.00 5998 4292.5 1.31 29.66 38894.65 Coca-Cola 42.92 0.86 43.91 36.56 2.83 29.41 186658.44 Pfizer 30.49 -0.22 36.46 28.47 3.38 24.46 187747.36
Vinci 62.42 2.20 62.97 46.45 2.63 19.18 39794.09
CanNatRy 75.95 5.49 88.89 66.62 1.54 18.19 42564.82 ShnEtsuCh 6081 488.00 8310 5593 1.63 19.88 21704.38 Thailand (THB) Cognizant 63.31 2.80 69.80 53.33 - 26.53 38589.3 Phillips66 80.15 0.12 94.12 68.65 2.48 9.99 42755.24
Vivendi 20.03 0.47 24.83 18.10 9.65-240.73 29656.34
Enbridge 48.66 1.24 66.14 40.03 3.52-127.66 30000.39 Softbank 5265 721.00 7827 4540 0.72 11.84 52215.55 PTT Explor 236.00 32.00 382.00 197.00 4.30 -76.86 18864.8 ColgtPlm♦ 67.53 2.92 71.56 50.84 2.05 26.68 60569.15 PhilMorris 90.01 3.14 90.27 75.27 4.18 20.66 139452.11
GtWesLif 34.72 0.68 37.70 30.42 3.64 12.89 24508.17 Germany (€)
Sony 2523 92.50 3970 2361 0.84 32.10 26308.6 United Arab Emirates (Dhs) Comcast 55.71 0.38 64.99 50.01 1.64 18.66 116685.11 PNCFin♦ 86.65 0.91 100.52 82.54 2.14 12.46 44877.8
ImpOil 42.95 1.83 55.37 37.25 1.09 21.98 25869.16 Allianz 148.65 0.50 170.15 131.05 4.45 10.89 73507.09
SumitomoF 3980 194.00 5770 3781 3.77 10.07 46486.94 Emirtestele 16.40 0.80 16.50 10.05 3.73 18.70 35305.82 ConocPhil 39.08 1.41 70.11 32.71 7.02 -50.92 48249.81 PPG Inds 95.12 1.96 118.95 82.93 1.37 23.75 25612.89
Manulife 19.47 0.76 24.20 17.13 3.28 15.67 27282.32 BASF 61.10 -1.84 97.22 59.00 4.43 11.47 60723.73
Takeda Ph 5773 464.00 6657 5086 2.95 -31.33 37680.54 United Kingdom (p) Corning 18.61 1.51 25.05 15.42 2.31 12.99 22015.34 Praxair 100.00 1.91 130.38 95.60 2.62 21.76 28484.55
Potash 22.84 0.06 47.10 20.65 8.42 9.83 13577.25 Bayer 103.40 -2.15 146.45 98.64 2.10 23.77 92522.38
TokioMarine 4248 409.00 5504 3839 2.40 17.88 26580.46 AscBrFd 3150 155.00 3606 2705.75 1.08 44.14 35374.18 Costco 151.12 -2.57 169.73 117.03 0.97 30.06 66459.14 Prec Cast 234.95 3.47 234.99 187.00 0.05 26.36 32324.69
RylBkC 72.55 3.21 81.53 64.95 4.19 10.94 76638.67 BMW 76.66 -3.05 123.75 72.05 3.65 9.26 49935.57
Toyota 7200 808.00 8783 6392 2.96 10.43 198517.99 AstraZen 4487.5 127.00 4931.68 3746 4.14 50.69 80467.97 CrownCstl 86.20 4.58 89.44 75.71 3.56 60.04 28771.09 Priceline 1064.97 -53.14 1476.52 992.13 - 23.76 53018.34
Suncor En 33.18 1.85 40.93 27.32 3.35 509.09 34093.97 Continental 192.60 -4.15 234.25 171.30 1.63 14.98 41681.89
Mexico (Mex$) Aviva 480.80 8.80 578.68 428.40 3.76 12.58 27612.28 CSX 23.02 0.60 37.67 21.33 2.77 12.22 22443.23 ProctGmbl♦ 81.69 4.33 86.78 65.02 3.10 27.54 220935.96
ThmReut 52.40 0.71 55.92 47.25 3.36 15.79 28470.26 Daimler 64.16 -2.07 96.07 62.06 3.69 9.20 74272.89
AmerMvl 12.79 0.82 17.17 10.87 1.96 23.27 29580.65 Barclays 186.00 -4.75 289.90 175.15 3.49 82.12 44337.44 CVS♦ 96.59 0.95 113.65 81.37 1.28 23.18 106955.76 Prudntl 70.08 0.21 92.60 65.07 3.10 9.76 31465.92
TntoDom 53.15 1.47 56.48 47.75 3.72 12.77 70093.73 Deut Bank 16.40 -1.18 33.42 15.97 4.42 -5.56 24476.1
FEMSA UBD 171.81 10.18 172.19 124.27 0.64 33.36 33838.82 BG 1054.5 74.30 1301.62 808.80 1.81 -20.37 51127.7 Danaher 86.65 1.30 97.62 81.25 0.55 25.71 59379.97 PublStor 253.56 5.83 255.97 182.08 2.29 45.40 43839.48
TrnCan 48.65 1.76 59.50 40.58 4.12 20.99 24290.05 Deut Tlkm 16.02 0.17 17.63 13.39 3.02 34.21 79828.95
WalMrtMex 45.58 1.53 47.00 28.32 1.19 34.76 43809.55 BP 376.10 23.40 499.25 252.55 7.16 -13.74 98067.93 Deere♦ 77.01 2.40 98.23 70.16 2.86 14.53 24389.08 Qualcomm 45.34 -2.73 74.09 43.47 3.95 15.68 67778.19
ValeantPh 129.00 3.56 347.84 92.65 - 55.95 31276.35 DeutsPost 22.33 -1.10 31.19 21.92 - 19.33 29264.8
BrAmTob 3897 271.50 3931.5 3231.5 3.80 18.09 103052.19 Delphi 64.94 -0.10 90.57 63.47 1.44 14.61 18188.93 Raytheon♦ 128.24 9.82 129.99 95.32 1.91 20.23 38612.81
E.ON 9.43 0.55 14.85 7.08 1.44 -2.10 20406.88 Netherlands (€)
China (HK$) BSkyB 1082 34.00 1180 899.50 3.03 29.63 26383.5 Delta 44.29 -2.47 52.77 34.61 0.86 13.63 34832.92 Regen Pharm 420.09 -62.90 605.93 393.00 - 88.68 42912.72
Fresenius Med 81.67 5.65 83.17 62.65 0.91 27.42 27648.08 Altice 13.24 0.74 47.73 9.98 - 245.32 11764.96
AgricBkCh 2.75 0.05 4.55 2.63 7.70 4.36 10861.26 BT♦ 484.85 -2.40 502.60 404.00 2.35 18.27 68514.72 DiscFinServ 45.79 -2.80 61.50 44.67 2.13 10.09 19574.48 ReynoldsAm 49.95 3.65 49.99 33.71 2.56 20.10 71383.62
Fresenius SE 60.94 1.28 70.00 46.20 0.70 27.49 35933.55 ASML Hld 84.22 0.62 104.85 70.25 0.80 27.04 39489.77
Bk China 3.04 0.11 5.68 2.91 7.28 4.73 32662.86 Compass♦ 1203 87.00 1223.36 963.00 2.29 23.05 28056.55 Disney 95.82 -1.08 122.08 90.00 1.77 20.86 157301.64 Salesforce 68.06 -3.49 82.90 55.45 - -552.45 45191.84
HenkelKgaA 84.85 4.62 99.44 75.76 1.47 21.51 23852.41 Heineken 80.02 3.16 85.90 63.71 1.28 24.45 49873.65
BkofComm 4.71 0.17 8.61 4.47 6.67 4.56 21188.48 Diageo 1884.5 27.00 2055 1592.5 2.84 19.92 67258.75 DominRes 72.17 2.41 79.27 64.54 3.30 25.52 42965.23 Schlmbrg 72.27 7.07 95.13 59.60 2.66 46.07 90797.71
Linde 124.60 -0.30 195.55 116.40 2.44 21.01 25041.23 ING 10.60 -0.30 16.00 10.16 - 24.22 44364.41
BOE Tech 1.81 -0.05 4.78 1.17 2.00 27.05 46.27 GlaxoSmh 1439 47.50 1645 1227.5 5.56 7.12 99403.26 DowChem 42.00 -1.22 57.10 35.11 3.75 12.09 48640.28 Shrwin-Will 255.67 5.66 294.35 218.27 0.94 26.16 23803.01
MuenchRkv 176.85 3.40 206.50 156.00 4.23 9.86 31927.41 Unilever 40.89 1.55 42.84 32.86 2.63 25.99 75868.32
Ch Coms Cons 6.81 0.96 17.00 5.77 2.89 6.92 3874.06 Glencore 89.48 10.90 318.46 66.67 12.79-208.09 18270.81 DukeEner 75.30 3.12 89.58 65.50 3.99 23.36 51831.58 SimonProp 186.28 -1.04 208.14 170.99 2.89 37.20 57638.4
SAP 73.19 1.19 75.75 53.91 1.45 29.35 97291.87 Norway (Kr)
Ch Evrbrght 3.63 0.27 5.65 3.22 5.97 5.02 3203.65 HSBC 492.30 12.75 674.57 461.80 6.81 9.71 137473.77 DuPont 52.76 -1.98 76.61 47.11 3.21 16.18 46239.23 SouthCpr 25.92 2.30 33.31 21.55 1.52 21.72 20356.95
Siemens 88.18 4.94 106.35 77.91 3.62 14.49 84060.92 DNB 104.20 3.30 143.00 90.10 3.65 7.67 19446.34
Ch Rail Cons 7.67 0.90 17.70 6.72 2.28 7.04 2046.19 ImpTob 3786 229.50 3786 2921 3.49 21.40 51487 Eaton 50.51 2.00 73.82 46.19 3.97 12.49 23376.03 Starbucks 60.77 1.60 64.00 42.05 1.08 38.73 89824.14
Volkswgn 120.60 -4.40 254.50 95.00 3.84 9.92 38507.88 Statoil 118.40 8.50 161.70 97.25 5.83 -10.56 43257.44
Ch Rail Gp 5.54 1.31 12.30 4.21 1.64 9.78 2994.9 LlydsBkg 65.46 -1.40 89.35 61.00 2.29 39.03 66349.22 eBay 23.46 -2.97 29.83 22.11 - 10.12 28167.34 StateSt 55.73 -0.10 81.26 50.73 2.15 13.93 22486.28
ChConstBk 4.73 0.24 7.98 4.46 7.41 4.49 146113.63 Hong Kong (HK$) Telenor 140.80 -1.00 186.10 132.10 2.59 35.93 24222.48 Ecolab 107.87 2.88 122.48 99.99 1.15 30.87 31854.39 Stryker 99.15 5.24 105.34 86.68 1.30 34.37 37233.03
Natl Grid 985.80 43.90 985.80 806.40 4.35 17.18 52398.29
China Vanke RMB 24.43 4.53 24.43 10.93 2.05 16.75 36586.73 AIA 42.85 2.50 58.20 38.85 0.95 21.16 66334.6 Qatar (QR) EMC 24.77 0.32 29.24 22.66 1.74 22.17 48025 Sychrony Fin 28.42 -0.64 36.40 26.28 - 11.54 23697.33
Prudential 1367.5 42.50 1761.5 1045.99 2.70 13.92 49884.48
ChinaCitic 4.52 0.26 7.40 4.22 - 4.48 8642.96 BOC Hold 20.50 1.08 33.70 19.40 4.95 9.25 27848.7 QatarNtBk 163.90 16.90 208.50 147.00 4.47 10.43 31498.4 Emerson 45.98 2.81 62.75 41.25 3.83 12.26 30096.54 Target 72.42 2.70 85.81 66.46 2.69 17.65 44614.46
RBS 252.70 -9.40 414.00 246.00 - -11.33 41670.58
ChinaLife 18.78 -0.22 41.00 18.02 2.44 11.96 17955.56 Ch OSLnd&Inv 22.40 1.75 34.05 20.45 2.22 6.82 28379.94 EOG Res 71.02 5.00 101.36 57.15 0.88 -10.89 39042.08 TE Connect 57.16 -0.84 73.73 54.32 2.16 21.36 21389.11
Russia (RUB) ReckittB 6234 187.00 6450 5403 2.23 26.49 62534.7
ChinaMBank 14.92 0.52 26.85 14.34 5.23 5.61 8800.94 ChngKng 41.65 2.15 77.55 38.20 - 9.69 20655.11 EquityResTP 77.09 -0.63 82.53 61.90 2.62 35.70 28080.95 Telsa Mtrs 191.20 -11.35 286.65 181.40 - -38.30 25037.89
Gzprm neft 136.60 4.20 166.94 122.75 5.66 10.58 43001.99 RELX 1230 44.00 1232 988.50 2.11 28.25 35804.22
ChinaMob 85.70 5.70 118.00 79.00 3.07 14.24 225463.53 Citic Ltd 10.94 0.22 16.40 10.44 1.78 5.70 40890.73 Exelon 29.57 1.54 37.25 25.09 3.93 14.03 27191.52 TexasInstr♦ 52.93 2.63 59.99 43.49 2.41 20.31 53692.83
Lukoil 2569 228.10 3297.7 2040.1 7.27 21.18 29056.66 RioTinto 1714 60.50 3280 1557 7.96 17.05 33407.28
ChinaPcIns 27.30 1.85 47.10 24.80 2.07 14.10 9734.95 Citic Secs 14.92 1.16 40.50 12.82 2.20 7.04 4367.65 ExpScripts 71.87 -0.36 94.61 68.06 - 23.82 48603.96 TheTrvelers 107.04 3.90 116.48 95.21 2.03 10.16 32563.58
MmcNrlskNckl 8850 -250.00 12247 7840 16.29 10.22 18622.99 RollsRoyce 555.00 12.00 1061 504.50 4.16 -40.81 14475.38
ChMinsheng 6.84 0.44 11.88 6.30 3.15 4.66 6093.65 CK Hutchison 96.35 3.15 174.90 92.00 3.43 4.19 47781.98 ExxonMb 77.85 1.28 93.45 66.55 3.42 17.55 324084.76 ThrmoFshr 132.06 -3.25 143.65 117.10 0.43 28.68 52704.84
Novatek 639.20 45.70 646.30 410.80 9.84 54.27 25808.18 RylDShlA 1518 131.00 2195.5 1256 8.27 91.76 85935.84
ChMrchSecs RMB 14.98 -0.92 40.00 13.85 2.70 8.87 10936.71 CNOOC 7.88 1.46 13.78 6.41 6.52 7.53 45204.66 Facebook 112.21 14.27 112.84 72.00 - 90.66 253565.04 TimeWrnr 70.44 -0.45 91.34 62.94 1.82 17.28 57449.56
Rosneft 272.45 22.05 294.20 214.80 3.23 6.84 38396.67 SABMill 4182.5 -7.00 4206.5 2773 1.78 34.65 96132.68
Chna Utd Coms RMB 4.05 -0.56 10.74 3.86 1.61 28.40 13048.84 HangSeng 128.50 7.10 162.10 121.10 3.95 10.16 31565.79 Fedex 132.88 5.32 185.19 119.71 0.64 35.98 36623.75 TimeWrnrC 182.01 -0.03 194.22 134.21 1.93 29.04 51544.79
Sberbank 96.50 5.00 110.70 59.60 0.50 9.68 27700.8 Shire 3910 -318.00 5870 3786 0.38 11.54 32856.57
ChShenEgy 11.62 1.28 22.50 10.12 7.30 8.50 5074.19 HK Exc&Clr 170.30 7.80 311.40 160.10 2.89 27.02 26444.51 FordMtr♦■ 11.94 -0.20 16.74 10.44 4.51 10.69 46539.47 TJX Cos 71.24 2.29 76.93 63.53 0.99 23.64 47697.26
Surgutneftegas 36.57 1.37 39.80 28.52 - 1.29 17371.05 StandCh 471.00 -17.50 1166 455.50 10.88 11.01 21901.84
ChShpbldng RMB 6.19 -1.81 20.19 5.83 0.60-390.18 16896.55 MTR 35.10 0.70 40.00 33.10 2.71 14.23 26420.14 Franklin 34.66 0.62 54.85 31.87 1.62 11.25 20817.94 T-MobileUS 40.15 2.30 43.43 29.27 - 70.98 32763.9
Saudi Arabia (SR) Tesco 173.40 12.85 252.52 137.00 0.67 -2.49 20024.41
ChStConEng RMB 5.13 -0.22 12.52 4.88 3.25 6.78 23315.21 SandsCh 26.80 5.90 39.85 20.75 6.72 16.12 27786.4 GenDyn♦ 133.77 7.40 153.76 121.61 2.32 16.10 42288.46 UnionPac 72.00 2.01 124.52 67.06 2.80 13.28 61496.69
AlRajhiBnk 48.13 2.77 69.00 44.70 3.69 12.84 20847.99 Vodafone♦ 223.90 4.45 258.00 201.25 5.01 -41.93 84339.56
ChUncHK 8.55 0.55 16.00 7.87 2.72 19.18 26307.54 SHK Props 83.80 2.50 137.60 79.40 2.59 8.43 31153.84 GenElectric 29.10 0.86 31.49 19.37 2.96 60.25 294178.85 UPS B 93.20 3.30 107.32 87.30 2.87 22.85 64880.5
Natnlcombnk 39.90 3.17 72.75 36.60 1.91 9.52 21214.42 WPP 1517 50.00 1616 1273 2.52 15.68 27861.2
CNNC Intl RMB 7.08 -0.78 14.38 4.07 - 20.55 4187.42 Tencent 144.90 11.80 171.00 124.00 0.23 42.69 175080.94 GenMills♦ 56.51 1.18 59.87 47.43 2.88 24.77 33529.94 USBancorp 40.06 0.69 46.26 37.97 2.34 13.56 70072.03
SaudiBasic 68.37 6.61 110.50 59.50 7.14 9.14 54674.13 United States of America ($)
CSR 7.18 0.28 20.70 6.68 - 16.86 4032.48 India (Rs) GenMotors 29.64 0.36 39.00 24.62 4.17 11.61 46125.08 UtdHlthcre 115.16 0.83 126.21 95.00 1.42 19.51 109759.97
SaudiTelec 60.06 0.72 73.25 52.75 6.33 12.93 32019.2 21stC Fox A 26.97 0.59 35.85 22.81 1.04 7.50 31575.18
Daqin RMB 6.81 -0.49 15.15 6.67 6.83 7.40 15389.21 Bhartiartl 289.90 -8.80 452.45 282.30 0.76 21.55 17072.62 GileadSci 83.00 -8.83 123.37 82.33 0.97 8.14 119617.96 UtdTech 87.69 1.34 124.45 83.39 2.68 14.71 77782.87
Singapore (S$) 3M 151.00 11.48 170.50 134.00 2.44 20.87 92972.65
Gree Elec Apl 0.17 -0.01 0.45 0.13 - -1.98 262.04 HDFC Bk 1049.85 19.55 1128 944.20 0.75 23.55 39055.08 GoldmSchs 161.56 4.70 218.77 151.12 1.45 11.33 68911.18 ValeroEngy 67.87 0.01 73.88 51.18 2.04 8.06 32679.64
DBS 14.06 0.29 21.50 13.45 4.00 11.36 24694.95 AbbottLb♦ 37.85 -2.18 51.74 36.00 2.33 24.02 56461.6
GuosenSec RMB 14.59 -1.31 34.94 13.76 1.33 9.13 4868.05 Hind Unilevr 816.90 45.40 981.00 766.40 1.71 39.10 26042.01 Halliburton 31.79 1.60 50.20 27.64 2.12 110.30 27206.31 Verizon♦ 49.97 2.93 50.86 38.06 4.15 21.40 203321.59
JardnMt US$ 52.50 2.10 67.00 45.00 2.49 13.54 36873.61 Abbvie♦ 54.90 -3.93 71.60 45.45 3.29 33.91 89747.61
HaitongSecs 11.66 1.08 27.90 10.00 2.50 7.60 5108.11 HsngDevFin 1180 21.55 1402.3 1093.2 1.26 20.32 27445.11 HCA Hold 69.58 3.76 95.49 43.91 - 15.54 28365.52 VertexPharm 90.75 -3.96 143.45 81.98 - -35.32 22298.84
JardnStr US$ 27.21 1.02 36.10 25.24 0.89 10.69 30286.06 Accenture 105.54 3.30 109.86 83.47 1.89 24.90 85088.81
Hngzh HikVDT RMB 26.55 0.54 56.48 23.72 1.46 19.49 12735.46 ICICI Bk 230.15 -2.60 382.00 217.80 2.10 10.70 19707.67 Hew-Pack 9.71 -0.09 17.64 9.24 6.36 4.26 17398.85 VF Cp 62.60 4.51 77.83 52.21 1.91 27.85 26686.95
OCBC 7.92 0.35 10.92 7.55 4.26 9.39 22892.32 Adobe 89.13 -0.50 96.42 69.04 - 76.20 44416.19
Hunng Pwr 6.35 0.44 11.90 5.89 6.93 6.34 3835.04 Infosys 1164.9 28.65 2336 932.65 3.45 20.21 39225.34 HiltonWwde 17.81 -0.46 31.60 16.16 0.37 25.13 17586.52 Viacom 45.64 2.43 73.52 36.32 3.00 10.30 15844.68
SingTel 3.51 0.12 4.57 3.38 4.67 15.41 39318.46 AEP 60.97 2.44 64.27 52.29 3.26 18.06 29925.14
IM Baotou Stl RMB 2.96 -0.10 7.50 2.66 - -39.06 7082.81 ITC 320.20 11.45 409.95 294.00 1.94 25.74 37911.64 HomeDep 125.76 3.00 135.47 92.17 1.64 25.66 159448.75 Visa Inc 74.49 1.79 81.01 60.00 0.65 28.25 144990.5
UOB 18.09 1.02 25.05 17.01 4.40 9.61 20428.48 Aetna 101.84 -5.74 134.40 90.20 0.90 16.68 35511.61
In&CmBkCh 4.03 0.17 7.10 3.82 7.39 4.56 44942.82 L&T 1101.65 -40.55 1893.8 1069.1 1.34 20.72 15113.59 Honywell 103.20 5.38 107.41 87.00 1.88 19.31 79535.35 Walgreen 79.72 -1.12 97.30 73.00 1.65 20.57 85997.7
Aflac 57.96 0.69 66.53 51.41 2.52 10.83 24733.77
IndstrlBk RMB 14.46 -0.50 21.42 11.90 3.82 5.69 41876.47 OilNatGas 226.25 10.00 373.80 205.95 4.24 10.19 28517.25 South Africa (R) HumanaInc 162.79 -3.43 219.79 143.44 0.66 20.00 24129.37 WalMartSto 66.36 3.67 88.00 56.30 2.70 15.49 212477.64
AirProd♦ 126.71 7.74 158.20 114.64 2.36 23.01 27304.73
Kweichow RMB 200.65 0.39 290.00 166.20 2.11 16.18 38313.39 RelianceIn 1035.4 31.25 1089.75 796.45 0.95 11.60 49413.66 Firstrand 44.43 3.98 58.47 34.08 5.05 9.50 15674.82 IBM 124.79 2.29 176.30 118.00 3.60 9.14 121060.04 WellsFargo 50.23 1.21 58.77 46.88 2.70 12.97 257848.64
Alexion 145.93 -13.22 208.88 141.16 - 141.15 32881.58
Midea 1.79 -0.08 2.68 1.65 5.06 12.43 49.46 SBI NewA 179.90 -4.70 330.50 171.50 1.88 7.68 20574.15 MTN Grp 139.50 16.51 250.00 109.56 10.54 7.08 16191.58 IllinoisTool 90.07 7.91 100.14 78.79 2.08 18.94 32739.7 Williams Cos 19.30 -0.44 61.38 12.77 11.55 46.02 14470.46
Allegran 284.43 -13.61 340.34 237.50 - -41.22 112100.84
New Ch Life Ins 26.40 0.70 56.55 25.40 0.91 7.75 3507.76 SunPhrmInds 872.95 83.75 1200.8 704.00 - 75.97 30950.57 Naspers N 1996 124.19 2270 1521.98 0.25 58.25 54968.63 Illumina 157.95 -18.76 242.37 130.00 - 49.24 23123.88 Yahoo 29.51 -0.24 46.17 27.20 - 123.38 27867.92
Allstate 60.60 2.07 72.87 54.12 1.82 11.27 23470.75
PetroChina 4.75 0.57 11.04 4.16 3.86 17.59 12877.08 Tata Cons 2391.3 95.55 2812.1 2243 1.65 22.08 69417.47 South Korea (KRW) Intcntl Exch 263.80 12.52 266.74 202.24 0.76 26.65 28955.92 Yum!Brnds♦ 72.37 3.39 95.90 66.35 2.12 36.94 31208.96
Alphabet 761.35 15.89 798.69 503.48 - 37.51 221802.41
PingAnIns 34.95 1.40 62.90 33.30 2.25 9.78 33444.39 Indonesia (Rp) HyundMobis 258500 18500 272000 185500 1.10 13.77 20988.73 Intel 31.02 1.10 35.59 24.87 2.85 14.18 146383.38 Venezuela ()
Altria 61.11 2.83 61.74 47.31 3.26 24.55 119817.12
PngAnBnk RMB 10.00 -0.32 17.50 9.30 1.69 6.56 17942.52 Bk Cent Asia 13100 150.00 15600 11000 0.99 20.77 23446.91 KoreaElePwr 52600 2100 54000 40800 0.90 2.92 28165.24 Intuit 95.51 1.90 109.21 79.63 1.01 63.45 25215.05 Bco de Vnzla 104.99 7.49 143.95 30.00 - - 28363.9
Amazon 587.00 -9.38 696.44 299.33 - 904.42 275163.3
Pwr Cons Corp RMB 6.31 -0.51 20.00 5.93 1.54 12.81 3165.16 SK Hynix 27300 700.00 51700 25800 1.04 4.55 16088.59 John&John 104.44 7.69 105.49 81.79 2.60 21.40 288979.59 Bco Provncl 3800 -299.00 4400 850.00 0.13 50.51 30351.44
Israel (ILS) AmerAir 38.99 -1.17 56.05 34.10 0.96 5.98 24576.39
SaicMtr RMB 18.62 -0.14 29.18 14.00 6.77 7.35 31205.66 SmsungEl 1150000 19000 1510000 1033000 1.69 8.90 121899.28 JohnsonCn 35.87 0.27 54.52 33.62 2.72 17.57 23240.48 Mrcntl Srvcs 5000 0.00 5900 1310 0.15 38.93 22000.5
TevaPha 239.50 237.07 275.90 214.70 2.06 30.91 61832.31 AmerExpr♦ 53.50 -1.56 86.18 52.15 1.93 10.17 52657.16
ShenwanHong 0.13 0.01 0.41 0.12 - -2.12 42.02 Spain (€) JPMrgnCh♦ 59.50 2.55 70.61 50.07 2.64 10.82 219027.22
Italy (€) AmerIntGrp 56.48 0.13 64.93 48.68 1.09 17.49 69866.47
ShgPdgBk RMB 16.90 0.32 20.12 11.91 4.34 6.59 47918.16 Kimb-Clark 128.42 1.70 130.05 103.04 2.54 82.57 46615.74 Closing prices and highs & lows are in traded currency (with variations for that
Enel 3.77 0.04 4.50 3.49 3.59 65.01 38339.09 BBVA 5.90 -0.06 9.77 5.55 2.62 15.52 40618.02 AmerTower 94.34 1.09 104.12 86.21 1.69 75.21 39959.61
Sinopec Corp 4.33 0.42 7.79 3.86 5.34 21.42 14194.4 KinderM♦ 16.45 1.11 44.71 11.20 10.59 32.74 36708.42 country indicated by stock), market capitalisation is in USD. Highs & lows are
ENI 13.28 0.31 17.66 12.01 6.98 -18.04 52221.97 BcoSantdr 3.94 -0.08 7.17 3.70 12.18 7.83 61460.19 Amgen 152.73 -3.35 181.81 130.09 1.83 19.48 115208.49
Sinopec Oil RMB 6.21 0.18 14.23 5.71 - -184.85 424.77 Kraft Heinz 78.06 3.67 81.20 61.42 0.66 -54.66 94722.35 based on intraday trading over a rolling 52 week period.
Generali 13.79 -1.13 19.21 13.29 4.20 11.54 23230.88 CaixaBnk 2.78 -0.06 4.53 2.59 2.78 24.28 17519.15 Anadarko 39.09 3.61 95.94 28.16 2.59 -3.63 19863.3
Denmark (kr) Iberdrola 6.45 0.15 6.71 5.66 2.32 17.12 44212.79 Kroger 38.81 1.69 42.75 27.32 0.91 20.80 37828.99 ♦ ex-dividend
IntSPaolo 2.62 -0.10 3.65 2.47 2.58 15.60 44927.16 Anthem 130.49 -10.91 173.59 126.25 1.66 13.34 34055.75
DanskeBk 184.70 3.70 218.00 161.20 2.88 28.25 27011.19 Inditex 30.19 0.63 35.38 25.46 1.25 35.37 101795.28 L Brands 96.15 0.23 101.11 75.11 1.76 26.33 27829.12 ■ ex-capital redistribution
Luxottica 57.55 0.65 67.80 50.10 1.21 36.18 30118.1 Aon Cp♦ 87.83 1.42 107.08 83.83 1.17 21.42 24058.11
MollerMrsk 8820 485.00 16450 7550 3.18 8.37 13610.59 Repsol 9.49 0.56 18.75 7.95 9.73 28.78 14382.88 LasVegasSd 45.10 6.07 61.59 34.88 5.09 17.32 35965.05 # price at time of suspension
Unicred 3.55 -0.45 6.61 3.48 3.27 11.49 22908.71 Apple 97.34 -4.08 134.54 92.00 2.01 10.77 539709.71
NovoB 379.90 4.30 415.00 274.30 1.27 30.76 113612.46 Telefonica 9.68 0.16 14.31 8.74 3.99 16.86 50939.87 LibertyGbl 34.41 0.71 58.66 31.63 - -23.71 8697.34
ArcherDan 35.35 2.12 53.31 29.86 2.86 13.04 21094.75
Lilly (E) 79.10 -3.38 92.85 68.31 2.36 38.21 87648.86

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
Ch Rail Gp 5.54 5.16 0.38 7.36 1.31 31.0 -7.20 ChShpbldng 6.19 6.02 0.17 2.82 -1.81 -22.6 -34.29 Jan 29 date Coupon S* M* F* price yield yield yield US Jan 29 date Coupon S* M* F* price yield yield yield US
SandsCh 26.80 26.20 0.60 2.29 5.90 28.2 1.90 Regen Pharm 420.09 415.11 4.98 1.20 -62.90 -13.0 -23.65 High Yield US$ US$
JapanTob 4661.00 4402.00 259.00 5.88 867.00 22.9 4.45 Chna Utd Coms 4.05 3.88 0.17 4.38 -0.56 -12.1 -35.51 Navient Corporation 06/18 8.45 BB- Ba3 BB 101.70 7.79 -0.01 1.09 6.99 Halliburton Company 02/27 6.75 A A2 A- 115.73 4.94 0.00 0.25 3.03
China Vanke 24.43 24.43 0.00 0.00 4.53 22.8 74.50 eBay 23.46 23.13 0.33 1.43 -2.97 -11.2 -15.94 High Yield Euro Korea Electric Power Corporation 08/27 6.75 AA- Aa2 AA- 100.79 6.76 0.00 -0.28 4.84
CNOOC 7.88 7.19 0.69 9.60 1.46 22.7 -4.95 Unicred 3.55 3.52 0.02 0.68 -0.45 -11.2 -31.77 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - Archer Daniels Midland Company 12/27 6.75 A A2 A 121.39 4.46 0.00 -0.03 2.54
Ch Coms Cons 6.81 6.52 0.29 4.45 0.96 16.4 -15.30 Fanuc 15810.00 18115.00 -2305.00 -12.72 -1910.00 -10.8 -24.79 FleetBoston Financial Corp. 01/28 6.88 BBB Baa3 A- 121.16 4.61 0.00 -0.25 -
CntJpRwy 22105.00 21540.00 565.00 2.62 3040.00 15.9 3.60 Illumina 157.95 154.25 3.70 2.40 -18.76 -10.6 -18.66 Emerging US$ SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 112.59 4.67 0.00 -0.45 -
Softbank 5265.00 5099.00 166.00 3.26 721.00 15.9 -15.34 CNNC Intl 7.08 6.88 0.20 2.91 -0.78 -9.9 -25.16 Mexico 09/16 11.40 BBB+ A3 BBB+ 106.80 1.49 0.03 0.01 0.44 E.I. du Pont de Nemours and Company 01/28 6.50 A- A3 A 116.82 4.70 0.00 0.10 -
MitsuiFud 2803.00 2574.00 229.00 8.90 383.50 15.9 -11.09 GileadSci 83.00 87.53 -4.53 -5.18 -8.83 -9.6 -19.70 Brazil 01/18 8.00 BB+ Baa3 BB+ 104.40 5.60 0.02 0.00 4.80
Russia 07/18 11.00 BB+ Ba1 BBB- 116.60 3.94 0.00 0.44 3.14 Euro
PTT Explor 236.00 235.00 1.00 0.43 32.00 15.7 -4.45 Netflix 91.84 94.41 -2.57 -2.72 -8.88 -8.8 -22.90 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 94.42 3.23 0.00 0.11 1.31
MitsubEst 2367.50 2146.50 221.00 10.30 319.50 15.6 -8.32 Alexion 145.93 145.61 0.32 0.22 -13.22 -8.3 -23.95 Peru 03/19 7.13 BBB+ A3 BBB+ 113.58 2.64 0.00 0.05 1.84
Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84 Electricite de France (EDF) 03/27 4.13 A+ A1 A 119.86 2.11 0.00 0.21 0.19
LasVegasSd 45.10 42.79 2.31 5.40 6.07 15.6 1.62 GuosenSec 14.59 13.84 0.75 5.42 -1.31 -8.2 -25.10 BHP Billiton Fin Ltd 09/27 3.25 A+ A1 A+ 99.82 3.27 0.00 0.64 1.35
Facebook 112.21 109.11 3.10 2.84 14.27 14.6 4.61 Deut Bank 16.18 16.18 0.00 0.00 -1.41 -8.0 -6.71 Brazil 01/21 7.88 BB+ Baa3 BB+ 95.84 5.94 0.00 -0.86 4.60
Colombia 07/21 4.38 BBB Baa2 BBB 100.46 4.32 0.00 -0.05 2.98 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 109.01 2.32 0.00 -0.10 -
Nomura 650.00 611.00 39.00 6.38 81.60 14.4 -5.59 Celgene 100.32 97.21 3.11 3.20 -8.49 -7.8 -17.28
Poland 03/22 5.00 A- A2 A- 110.33 3.16 0.00 0.06 1.82 Yen
Fuji Hvy Ind 4856.00 4519.00 337.00 7.46 601.00 14.1 -3.35 Anthem 130.49 126.42 4.07 3.22 -10.91 -7.7 -8.01
Turkey 09/22 6.25 - Baa3 BBB- 109.48 4.63 0.00 -0.17 3.29 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
EastJpRwy 10990.00 10370.00 620.00 5.98 1349.00 14.0 -2.60 Generali 13.79 13.39 0.40 2.99 -1.13 -7.6 -19.12
Nissan Mt 1180.00 1101.50 78.50 7.13 144.00 13.9 -8.75 Shire 3910.00 3879.00 31.00 0.80 -318.00 -7.5 -16.51 Turkey 04/26 4.25 - Baa3 BBB- 95.04 4.93 0.00 -0.18 3.01 £ Sterling
Glencore 89.48 90.45 -0.97 -1.07 10.90 13.9 -3.89 Pwr Cons Corp 6.31 6.02 0.29 4.82 -0.51 -7.5 -20.23 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 122.65 4.11 0.06 0.12 1.82
PetroChina 4.75 4.56 0.19 4.17 0.57 13.6 -9.87 Daqin 6.81 6.71 0.10 1.49 -0.49 -6.7 -21.63 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 B.A.T. Intl Fin plc (Re - British American Tobacco) 09/26 4.00 A- A3 A- 104.67 3.47 0.06 0.29 1.18
NipponTT 5028.00 4873.00 155.00 3.18 601.00 13.6 4.54 Abbvie 54.90 55.85 -0.95 -1.70 -3.93 -6.7 -8.79 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.69 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+ A3 BBB+ 121.63 2.06 0.00 0.00 0.72 Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 09/25 5.75 BB+ - BBB- 115.03 3.91 0.00 -0.02 1.99
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Jan 29 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Jan 29 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.25-0.50 16-12-2015 1.00 0.00-0.25 0.00-0.25 Index change change change 1 month 1 year VIX 20.20 -2.22 22.42 53.29 10.88 Jan 29 Price £ Yield Day Week Month Year High Low £m
US Prime 3.50 16-12-2008 3.50 3.25 3.25 Markit IBoxx VXD 19.57 -2.06 21.63 56.32 7.04 Tr 4pc '16 102.17 0.35 0.00 -5.41 9.38 0.00 102.23 100.00 0.35
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 173.96 0.76 0.39 0.39 0.19 -3.76 VXN 23.64 -2.68 26.32 46.72 11.15 Tr 1.75pc '17 101.41 0.30 -9.09 -14.29 -36.17 -30.23 102.63 101.34 0.29
Euro Repo 0.05 10-09-2014 0.05 0.05 0.25 Corporates( £) 297.09 0.63 0.65 0.65 0.31 -3.11 VDAX 27.39 0.00 27.39 30.63 - Tr 5pc '18 109.82 0.30 -21.05 -30.23 -55.88 -52.38 113.51 109.34 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 249.36 0.04 -0.04 -0.04 -0.04 -0.04 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 112.17 0.53 -15.87 -22.06 -45.36 -33.75 115.07 111.04 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 212.39 0.35 0.52 0.52 0.56 -0.98 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 116.11 0.75 -12.79 -17.58 -37.50 -22.68 119.04 114.45 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 229.71 0.51 1.96 1.96 2.05 1.60 Tr 1.5pc '21 102.36 1.01 -9.82 -15.13 -32.21 -5.61 142.92 99.91 0.16
Gilts( £) 297.85 0.82 3.83 3.83 3.40 0.23 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 117.29 1.06 -9.40 -13.82 -29.80 -8.62 119.85 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 240.57 0.55 0.94 0.94 0.16 -4.44 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 130.12 1.45 -6.45 -8.81 -22.46 3.57 134.70 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 298.89 0.63 1.34 1.34 0.99 -2.20 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 127.10 1.71 -5.00 -8.06 -19.72 7.55 131.90 119.79 0.31
Jan 29 (Libor: Jan 28) night Day Week Month month month month year Overall ($) 227.73 0.06 1.20 1.20 1.20 1.20 Australia 10/18 3.25 103.58 1.89 -0.03 -0.06 0.00 -0.09 Tr 4.25pc '32 130.55 2.04 -3.77 -6.85 -15.70 10.27 136.85 121.93 0.35
US$ Libor 0.36840 0.003 0.003 -0.002 0.42620 0.61560 0.86575 1.15105 Overall( £) 295.46 0.77 3.09 3.09 2.69 -0.49 11/27 2.75 99.42 2.81 -0.03 0.00 0.00 0.00 Tr 4.25pc '36 132.76 2.22 -3.48 -6.33 -14.62 11.56 140.37 123.52 0.28
Euro Libor -0.28357 -0.001 0.000 -0.002 -0.23071 -0.17429 -0.09714 0.01429 Overall(€) 224.08 0.43 1.54 1.54 1.60 1.02 Austria 10/19 0.25 99.98 0.26 0.00 0.00 0.00 0.00 Tr 4.5pc '42 143.32 2.32 -2.93 -6.07 -13.11 12.08 153.16 132.20 0.26
£ Libor 0.48063 0.000 0.000 0.000 0.50944 0.58938 0.73688 1.00900 Treasuries ($) 220.93 0.05 1.91 1.91 1.91 1.91 10/25 1.20 105.87 0.58 -0.08 -0.15 0.00 0.00 Tr 3.75pc '52 137.02 2.26 -2.59 -5.44 -12.74 7.62 145.21 121.95 0.22
Swiss Fr Libor 0.001 -0.78400 -0.74760 -0.68380 -0.61080 FTSE Belgium 06/18 0.75 101.79 -0.02 0.00 0.00 0.00 0.00 Tr 4pc '60 150.39 2.20 -2.65 -5.58 -13.73 6.28 159.23 131.72 0.22
Yen Libor -0.003 0.04857 0.08214 0.11229 0.21757 Sterling Corporate (£) 110.58 0.46 - - 0.47 -6.67 06/26 1.00 102.20 0.78 -0.08 -0.16 0.00 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor 0.002 -0.22900 -0.16000 -0.08300 0.02200 Euro Corporate (€) 105.95 0.29 - - 0.56 -4.51 Canada 11/17 0.25 99.69 0.43 0.00 -0.04 0.00 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.50000 0.60000 0.77500 Euro Emerging Mkts (€) 781.52 13.51 - - -10.35 -19.58 06/26 1.50 101.83 1.31 -0.05 -0.14 0.00 0.00
US$ CDs
Euro CDs
0.000
0.000
0.42000
-0.24500
0.59000
-0.18500
0.83000
-0.09500
Eurozone Govt Bond 115.36 0.55 - - 1.98 -1.26 Denmark 11/18 0.25 101.54 -0.30 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 1.75 110.77 0.61 -0.06 -0.13 0.00 0.16
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 99.67 1.15 0.00 -0.04 -0.21 0.00
Fixed Coupon Jan 29 chg % Return 1 month 1 year Yield
Jan 29 term notice month month month year Markit iTraxx 09/25 0.88 102.74 0.58 -0.09 -0.16 0.00 0.00
1 Up to 5 Years 99.08 0.26 2389.89 0.98 1.58 0.66
Euro -0.35 -0.25 -0.35 -0.25 -0.32 -0.17 -0.26 -0.11 -0.17 -0.02 -0.07 0.08 Crossover 5Y 368.11 -6.82 0.12 53.22 397.02 280.05 France 05/19 1.00 104.33 -0.30 0.00 0.00 0.00 0.00
2 5 - 10 Years 183.28 0.67 3317.53 2.43 2.03 1.30
Sterling 0.40 0.55 0.40 0.55 0.45 0.55 0.55 0.65 0.70 0.85 0.97 1.12 Europe 5Y 91.88 -1.60 -0.64 14.62 99.07 68.39 11/20 0.25 101.88 -0.14 0.00 0.00 0.00 0.00
3 10 - 15 Years 210.85 0.90 3927.28 3.65 1.15 1.81
Swiss Franc - - - - - - - - - - - - Japan 5Y 83.75 -5.06 -9.00 9.06 94.85 65.01 11/25 1.00 103.35 0.65 -0.08 -0.15 0.00 0.00
4 5 - 15 Years 189.81 0.74 3465.05 2.78 1.75 1.51
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 91.59 -0.53 3.98 14.72 99.56 65.28 05/45 3.25 136.55 1.66 -0.10 -0.19 0.00 0.19
5 Over 15 Years 309.20 1.28 4507.65 5.63 -1.10 2.25
US Dollar 0.32 0.42 0.32 0.42 0.40 0.50 0.60 0.70 0.80 0.90 1.10 1.20 Germany 04/19 0.50 103.02 -0.44 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 176.45 0.80 3317.21 3.29 0.41 1.97
Japanese Yen -0.20 -0.05 -0.20 -0.05 -0.25 0.00 -0.30 0.00 -0.15 0.10 -0.10 0.15 10/20 0.25 102.66 -0.31 0.00 0.00 0.00 0.00
Emerging Markets 5Y 371.10 -5.89 -18.88 13.00 400.12 299.17 02/26 0.50 101.70 0.33 -0.08 -0.16 0.00 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 515.54 -13.93 -35.68 44.40 557.56 416.39 08/46 2.50 137.62 1.05 -0.08 -0.22 0.00 0.01
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Jan 29 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 103.01 -1.96 -5.76 14.66 110.98 75.52 Greece 07/17 3.38 87.51 13.35 -0.67 0.35 0.00 -3.67
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 283.44 100.00 1 Up to 5 Years 309.42 0.17 0.38 -1.11 2373.90 0.80 0.33
02/26 3.00 63.38 9.34 -0.05 0.19 0.00 -1.02 2 Over 5 years 584.84 0.76 4.55 -0.82 4322.09 4.68 -0.08
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 110.06 -0.36 0.00 0.00 0.00 0.00 3 5-15 years 433.77 0.49 2.24 -1.72 3307.38 2.58 -0.44
05/26 1.00 100.39 0.96 -0.08 0.00 0.00 0.00 4 Over 15 years 725.07 0.86 5.48 -0.33 5255.11 5.52 0.20
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/18 0.30 100.74 0.03 -0.03 -0.03 0.00 0.00 5 All stocks 539.73 0.67 3.93 -0.83 4041.68 4.11 0.02
11/20 0.65 101.04 0.43 -0.06 -0.12 0.00 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
12/25 2.00 105.35 1.42 -0.07 -0.16 0.00 0.00 Yield Indices Jan 29 Jan 28 Yr ago Jan 29 Jan 28 Yr ago
Crude Oil† Feb 33.69 -0.09 Corn♦ Mar 371.50 6.25 Jan 28 Jan 28 Prev return stock Market stocks
09/46 3.25 114.27 2.59 -0.05 -0.13 0.00 -0.14 5 Yrs 0.89 1.00 0.93 20 Yrs 2.27 2.35 2.00
Brent Crude Oil‡ 35.85 0.52 Wheat♦ Mar 479.00 6.50 Can 4.25%' 21 126.51 -0.254 -0.215 -0.48 5.18 70551.98 7
Japan 01/18 0.10 100.37 -0.09 0.00 0.00 0.00 0.00 10 Yrs 1.63 1.72 1.46 45 Yrs 2.23 2.28 2.10
RBOB Gasoline† Feb 1.13 0.01 Soybeans♦ Mar 881.50 13.00 Fr 2.25%' 20 113.83 -0.767 -0.723 -0.30 20.31 214071.35 14
02/21 0.05 100.09 0.03 0.00 -0.01 0.00 0.00 15 Yrs 2.07 2.15 1.81
Heating Oil† Feb 1.08 0.03 Soybeans Meal♦ Mar 272.00 5.10 Swe 0.25%' 22 108.38 -0.897 -0.824 1.17 32.00 235579.56 7
12/25 0.30 101.93 0.10 -0.12 -0.13 0.00 0.00
Natural Gas† Feb 2.31 0.08 Cocoa (ICE Liffe)X Mar 2009.00 -3.00 UK 2.5%' 20 359.28 -1.244 -1.217 1.32 6.58 496236.66 25
12/45 1.40 107.50 1.07 -0.10 -0.12 0.00 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Mar 2765.00 -14.00 UK 2.5%' 24 339.71 -0.843 -0.815 2.27 6.82 496236.66 25
Netherlands 04/17 0.50 101.17 -0.47 0.00 0.00 0.00 0.00 Real yield Jan 29 Dur yrs Previous Yr ago Jan 29 Dur yrs Previous Yr ago
Uranium Feb 36.75 0.00 Coffee(Robusta)X Mar 1382.00 -20.00 UK 2%' 35 232.97 -0.811 -0.797 3.64 9.08 496236.66 25
07/25 0.25 98.19 0.45 -0.08 -0.15 0.00 0.00 Up to 5 yrs -1.00 2.29 -0.92 -0.95 -1.76 2.31 -1.70 -1.59
Carbon Emissions - - Coffee (Arabica)♥ Mar 116.45 -2.60 US 0.625%' 21 102.21 0.218 0.248 1.34 35.84 1129320.26 36
Diesel Mar - - White SugarX 407.00 -0.20 New Zealand 03/19 5.00 107.34 2.53 -0.01 0.03 0.00 -0.62 Over 5 yrs -0.89 23.59 -0.86 -0.91 -0.92 23.68 -0.89 -0.95
US 3.625%' 28 132.39 0.830 0.248 1.13 16.78 1129320.26 36
Unleaded (95R) - - Sugar 11♥ 13.16 -0.17 04/27 4.50 111.93 3.22 -0.02 -0.04 0.00 -0.03 5-15 yrs -0.83 9.55 -0.78 -0.93 -0.94 9.56 -0.90 -1.07
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/19 4.50 112.71 0.60 -0.05 -0.06 0.00 -0.15 Over 15 yrs -0.90 29.13 -0.87 -0.91 -0.92 29.18 -0.89 -0.93
Base Metals (♠ LME 3 Months) Cotton♥ Mar 60.96 -0.39 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
03/25 1.75 103.59 1.33 -0.04 -0.11 0.00 0.00 All stocks -0.90 20.56 -0.86 -0.91 -0.94 20.71 -0.91 -0.95
Aluminium 1517.50 5.00 Orange Juice♥ Mar 132.35 -1.85 amount.
Aluminium Alloy 1615.00 65.00 Palm Oil♣ Jan 562.00 - Portugal 06/19 4.75 112.87 0.85 -0.03 0.03 0.00 -0.54 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4571.00 27.50 Live Cattle♣ Feb 134.80 -1.15 BONDS: TEN YEAR GOVT SPREADS 07/26 2.88 100.04 2.87 -0.12 -0.16 0.00 0.00
Lead 1717.00 50.00 Spain 04/18 0.25 100.42 0.06 -0.04 -0.03 0.00 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Mar 157.30 -2.70
Nickel 8615.00 10.00 Lean Hogs♣ Feb 65.63 0.08 Spread Spread Spread Spread 04/26 1.95 103.17 1.61 -0.09 -0.21 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 14700.00 640.00 Bid vs vs Bid vs vs Sweden 10/18 1.00 99.52 1.19 0.00 -0.07 -0.25 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1621.00 43.00 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 116.95 0.62 -0.06 -0.10 0.00 -0.08 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Jan 28 Month Year Australia 2.81 2.48 0.89 Italy 1.42 1.09 -0.50 Switzerland 05/19 3.00 113.01 -0.89 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1111.80 -2.20 S&P GSCI Spt 300.67 8.20 - Austria 0.58 0.25 -1.34 Japan 0.10 -0.23 -1.82 05/26 1.25 115.41 -0.22 0.00 0.00 0.00 0.00
Silver (US cents) 1408.00 50.00 DJ UBS Spot 77.22 4.65 - Belgium 0.78 0.45 -1.14 Netherlands 0.45 0.12 -1.47 United Kingdom 07/18 1.25 101.87 0.49 -0.11 -0.14 0.00 -0.28 Data provided by Morningstar | www.morningstar.co.uk
Platinum 866.00 -17.00 R/J CRB TR 167.29 -4.40 -22.38 Canada 1.31 0.98 -0.61 Norway 1.33 1.00 -0.59 01/21 1.50 102.40 1.00 -0.13 -0.18 0.00 0.00
Palladium 501.00 2.00 Rogers RICIX TR 1926.47 - - Denmark 0.61 0.29 -1.31 Portugal 2.87 2.54 0.95 09/25 2.00 103.89 1.56 -0.11 -0.15 0.00 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Finland 0.58 0.25 -1.34 Spain 1.61 1.28 -0.31 12/46 4.25 142.89 2.30 -0.07 -0.14 0.00 0.21
Iron Ore (Platts) 42.40 -0.20 UBS Bberg CMCI TR 11.67 -3.68 -23.41 France 0.65 0.32 -1.27 Switzerland -0.22 -0.55 -2.14 United States 12/17 1.00 100.38 0.80 -0.03 -0.07 0.00 0.00
Iron Ore (The Steel Index) 41.50 0.00 LEBA EUA Carbon 5.96 -14.86 -14.98 Germany 0.33 0.00 -1.59 United Kingdom 1.56 1.23 -0.36 12/20 1.75 101.95 1.34 -0.06 -0.14 0.00 0.00
GlobalCOAL RB Index 54.00 2.00 LEBA CER Carbon 0.39 -17.02 -15.22 Greece 9.34 9.01 7.42 United States 1.92 1.59 0.00 11/25 2.25 102.95 1.92 -0.07 -0.14 0.00 0.00
Baltic Dry Index 317.00 -8.00 LEBA UK Power 2551.00 102.30 23.18 Ireland 0.96 0.63 -0.96 11/45 3.00 105.59 2.72 -0.07 -0.10 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.
22 ★ Monday 1 February 2016

Corporate diary February 1 - February 5 ECONOMIC OUTLOOK

TODAY 1 After surging on his appointment, BoE decision stands out in wealth of data
BT will reveal more of plans to integrate Credit Suisse’s shares have since fallen
EE, the mobile operator acquired for sharply, partly on investors’ This week’s highlights include the Bank most committee members share Mr
£12.5bn from Deutsche Telekom and disappointment that Mr Thiam has not of England’s rate decision, coinciding Carney’s view, interest rates are almost
Orange, at its third-quarter results. gone further in scaling down Credit with the release of the year’s first certain to stay at 0.5 per cent.
The telecoms company is expected to Suisse’s investment bank operations. inflation report on Thursday. Then The market is speculating that the
provide additional details about its plans The results are unlikely to show many Friday’s release of US non-farm payrolls BoE will keep rates on hold for the
for EE, changes to senior management, as benefits of the overhaul feeding through will provide an important signal of US entirety of 2016. Howard Archer of IHS
well as further information about how so far; but the figures will show how it has economic performance through January. says: “The analysis and forecasts
staff will be brought into the group. weathered turbulent conditions and the Also out over the week are a number contained in the Quarterly Inflation
Analysts expect BT to post good relative strength of divisions. of activity indicators, including Report, as well as the February MPC
results even before EE’s acquisition, Pre-tax profits are expected to have purchasing managers’ indices for China, minutes, should offer further clues as to
although BT will be quizzed on the fallen 36 per cent to SFr568m in the the UK and, from the US, their whether the Bank of England really is
outcome of a number of regulatory issues fourth quarter of 2015 compared with the equivalents from the Institute of Supply likely to hold off from an interest rate
such as its expectations of a sector — Tim Rue/Bloomberg
same period a year earlier, according to Management. hike until 2017.” His current view is a 0.25
review by Ofcom next month. Oil price rout to overshadow majors’ earnings reports the consensus of forecasts compiled by Towards the end of January Mark basis point increase in November being
Revenues for BT are expected to be flat Bloomberg. Pre-tax profits for the full Carney, BoE governor, laid out his the only change this year.
compared with same quarter in the year year are expected to have risen to personal views on the path of UK Friday’s US non-farm payroll release
before, but with a slight increase in Investors will see the full impact of barrel a year from now, it would be SFr4.16bn from SFr3.63bn in 2014. interest rates in light of the Fed’s for January is expected to show some
earnings before interest, tax, depreciation collapsing crude prices on oil majors’ “irresponsible of company boards not to Mr Thiam hopes his strategy will decision to raise rates in December. softening in US employment growth;
and amortisation (ebitda). Free cash flow results this week, with earnings address the issue of adjusting reduce earnings volatility. However, he Mr Carney cited the UK’s greater payrolls gained 292,000 in December
is forecast to drop 9 per cent to £827m expected to reflect the hit to revenues. distributions”. has warned that changing business exposure (relative to the US) to the the second highest gain of 2015.
owing to higher tax payments. Internationally traded Brent crude Royal Dutch Shell, whose planned model was a “two or three-year journey”. current weakness in the global economy Payrolls in January are expected to
Earnings at BT’s consumer business are prices were 43 per cent lower during takeover of BG Group was approved by He told Bloomberg: “So we’re still being as reason enough to forestall the come in at 200,000, the lowest since
expected to rise about 2 per cent as the fourth quarter of 2015 from a year both companies’ shareholders last week hit by volatility and that worries the tightening cycle for now. Assuming that September last year and the
customers continue to be attracted by its ago and have continued to fall since to and will become effective on February market.” Credit Suisse has arguably been unemployment rate should stay at 5 per
TV channels that show exclusive football, 12-year lows of less than $30 a barrel. 15, is not expected to spring major more exposed than some of its rivals cent. The data, while important, are not
with 4 per cent growth predicted at its For BP, the first of the European surprises, having already said in a because of its relative strength in difficult UK inflation and rates likely to influence any interest rate
Openreach arm, which controls the majors to report, Oswald Clint at trading statement it expects profits to high-yield bond issuance and leveraged Per cent decision with the next rate increase
broadband network. Daniel Thomas Bernstein Research is forecasting a 66 fall at least 40 per cent year on year. finance markets. Ralph Atkins expected around the middle of the year.
per cent annual fall in earnings for the The group’s earnings, on a current Inflation (annual 6 US manufacturing activity for January
EARNINGS three-month period to $760m, with an cost of supplies basis, excluding European car sales were strong in the last % change) is available today. As manufacturing has
BT Group Q3 7.80p (7.90p) 4
increase in production — excluding exceptionals, will fall to between $1.6bn three months of 2015, while China also been contracting in the US since
Russia’s Rosneft — of about 3 per cent and $1.9bn. No material impairments are recovered towards the end of the year. November, the December ISM reading
2
TUESDAY 2 more than offset by the effects of lower foreseen and executives will reiterate When Daimler reports its full year 48.2, analysts think the contraction will
EARNINGS prices. plans for the enlarged company to numbers, investors will be hoping for an slow in January to 48.5
BP Q4 $0.04 ($0.12) 0
The industry is expected to unveil curtail capital spending sharply, shed indication of how these two key markets Bank rate US service sector activity in January is
Dow Chemical Q4 $0.70 ($0.85) deeper targets for cost-cutting in the thousands of jobs and dispose of $30bn are likely to fare in 2016. thought to have remained unchanged.
Pfizer Q4 $0.52 ($0.54) -2
wake of the new year plunge in crude, in assets. Analysts suspect that the European 2008 09 10 11 12 13 14 15 16 The ISM non-manufacturing index hit
with few, if any, large projects likely to BG will also report and, like Shell, Central Bank’s quantitative easing 55.3 in December, well within
Source: Thomson Reuters Datastream
WEDNESDAY 3 be approved in coming months. updated the market in January. Its programme will help keep credit expansionary territory. Andrew Whiffin
GlaxoSmithKline will aim to supply Shareholders will be looking for output is ahead of expectations, conditions easy enough for Europeans to
further evidence of a turnround when it reassurance on dividend payouts. reflecting strong production increases keep buying cars, but the outlook for 4CAST ECONOMIC CALENDAR
announces fourth-quarter results. Société Générale’s Irene Himona from its liquefied natural gas operations China is more uncertain. A third of
COUNTRY For Indicator Units* Mkt* Prev* COUNTRY For Indicator Units* Mkt* Prev*
The October numbers beat market believes dividends will remain flat for in Australia and deepwater oilfields in Daimler’s sales were in Europe last year, MONDAY UK Jan Markit services PMI 55.4 55.5
expectations and Sir Andrew Witty, chief the big majors, arguing that their Brazil. Full-year earnings are expected while 10 per cent were in China in 2014. China Jan Caixin PMI mfg 48.1 48.2 US Jan ADP employment 5 195 257
executive, needs to keep the momentum balance sheets “are strong enough to to be about $1.7bn, ahead of consensus, Investors may also receive more China Jan Manuf. PMI 49.6 48.2 US Jan ISM non-manuf. 55.3 55.3
Eurozone Jan Manuf. PMI 52.3 52.3
going if he is to win time from investors absorb the hard times in 2015-16”. with impairments on North Sea and information about Daimler’s plans for Germany Jan Manuf. PMI 52.1 52.1 THURSDAY
and GSK’s board to complete the job. But, if Brent crude remains at $30 a Tunisian assets. Christopher Adams Iran. The group traded in Iran for more India Jan Manuf. PMI n/a 49.1 UK MPC - base rate % 0.5 0.5
Russia Jan Manuf. PMI 47.5 48.7 US Dec Factory orders 1 -1.3 -0.2
All eyes will be on the struggling than 60 years before leaving in 2010. And UK Dec Mortgage approvals 5 69.6 70.4 US Week Initial claims 5 n/a 278
respiratory business, which Sir Andrew has promised to return to growth this better times ahead. Andrew Ward it was one of the first companies to say UK Dec Net consumer credit 3 1.3 1.5 US Q4 Unit labour costs 1 3.9 1.8
year. This is crucial if GSK is to meet his that it would return after economic UK Dec Secured lending 3 3.6 3.9
UK Jan Markit mfg PMI 51.8 51.9 FRIDAY
Diary commentary from FT reporters. Data, unless wider goal to increase earnings by a EARNINGS sanctions were lifted, signing letters of US Dec Core PCE prices 1 0.1 0.1 Canada Jan Unemployment % n/a 7.1
otherwise stated, from Thomson Reuters. Company double-digit percentage rate in 2016. GlaxoSmithKline Q4 19.01p (21.50p) intent with Iran Khodro Diesel to sell US Jan ISM manuf. 48.5 48.2 France Dec Trade balance 3 n/a -4.63
announcements, collated by Thomson Streetevents, US Jan Manuf. PMI 52.7 52.7 Germany Dec Factory orders 2 -1.6 2.1
are of information publically available before last However, this growth would be from a commercial vehicles in the republic. US Dec Personal income 1 0.2 0.3 UK Jan Halifax house prices 2 9 9.5
week. Results forecasts, from Thomson I/B/E/S, are much diminished base after two years of THURSDAY 4 James Shotter US Dec Personal spending 1 0.1 0.3 US Dec Consumer credit 3 15.5 13.95
for fully diluted, post-tax EPS in local currency for falling profits — a trend analysts expect Credit Suisse sets out how it has fared in US Jan Non-farm payrolls 5 200 292
TUESDAY US Jan Unemployment % 5 5
the stated fiscal period. The comparable period of
to have continued in the last three a rough global environment for banks. In EARNINGS
Eurozone Dec Unemployment % 10.5 10.5 US Dec Trade balance 3 -42.85 -42.37
the previous year is bracketed. Non-UK reporting
periods are broken by quarter: Q1, Q2, Q3, Q4. UK months of 2015. Sales are forecast to be October, Tidjane Thiam, who had joined Credit Suisse Q4 $0.403 ($0.52) Germany Jan Unemployment % 6.3 6.3
periods are designated: Q1, H1 (first half), Q3 and almost flat at £6.1bn. as chief executive in July, launched a Daimler Q4 $0.747 ($1.67) UK Jan Markit constr. PMI 57.6 57.8
FY (full year). HIV drugs growth is expected to be a capital raising plan and strategic Royal Dutch Shell Q4 $0.403 ($0.52) WEDNESDAY
Mkt* = market consensus estimates. Prev*= previous actual
Units*; 1 = % change on previous period, 2 = % change on same
bright spot and if combined with overhaul, which will focus the Swiss bank Eurozone Dec Retail trade 2 1.5 1.4 period in previous year, 3 = national currency bn, 4 = annualised
stabilisation in the respiratory business around wealth management operations, a FRIDAY 5 France Jan Services PMI 50.6 50.6 quarterly % change, 5 = 000s, NSA=not seasonally adjusted,
Germany Jan Services PMI 55.4 55.4 SA=seasonally adjusted.
and delivering cost savings, investors push into Asia and expand domestic EARNINGS
Japan Jan Consumer conf. n/a 42.7 See more at www.ft.com/economic-calendar
may become more willing to believe in operations in Switzerland. BG Group Q4 $0.05 ($0.27)

Trading Directory

THE AUTHORITY ON GLOBAL FUND MANAGEMENT | FINANCIAL TIMES | Monday February 1 2016
Special report
Time to stop the
ETF machine?
Like any good gardener, the
US financial regulator has
decided the rapidly expanding
exchange traded fund market
may need pruning to ensure
healthy growth.
Just a couple of months
before the ETF market had set
a new record for global asset
gathering — roughly $372bn
for 2015 — Luis Aguilar,
commissioner of the Securities
and Exchange Commission,
asked: “Should we consider
curtailing the growth of ETFs?”
Bromley
SEE REPORT INSIDE
Fund managers want European regulators to water down proposed trading rules
‘Seismic’ shock awaits bond liquidity
MADISON MARRIAGE AND
ATTRACTA MOONEY
Fund managers have made a last-
ditch attempt to convince European
regulators to water down proposed
trading rules designed to prevent a
repeat of the market turmoil
encountered during the financial
crisis.
The rules, which will increase
transparency in fixed income trad-
ing, will have a “seismic” impact on
the asset management market if
they go ahead unchanged, according
to industry insiders.
The changes form part of Euro-
pean legislation known as Mifid II,
fm
and would force asset managers try-
ing to sell a liquid bond instrument
to disclose what price they are seek-
ing ahead of its sale.
Traders have likened the rules to
playing poker with their cards on
show, which could result in markets
becoming more illiquid and inves-
tors paying more for their trades.
A senior executive at a large US
fund company, who requested ano-
nymity, said: “Our head of fixed
income trading says that if he didn’t
have young children, he would retire
the day this comes in. It is not going
to be pretty. It would undoubtedly
affect liquidity.”
Fund managers are also concerned
that too many illiquid instruments
will be deemed liquid and subjected
to the transparency requirements.
James Hughes, a Brussels-based
director at Cicero, the political lob-
bying group, said: “The pre-trade
transparency regime will have a pro-
found effect on how markets operate
and potentially [limit] liquidity in
markets. That is certainly causing a
lot of concern [among investors] and
will have a huge impact on the trad-
ing environment.”
Lobbyists from London travelled
to Brussels last week in an eleventh-
hour attempt to persuade officials at
the European Commission to limit
the scope of the rules put forward by
Esma, the European markets regula-
tor, last year.
But the commission, which is
expected to publish its final rules in
March, is unlikely to soften Esma’s
proposals, according to Mr Hughes.
“It is quite a dramatic issue, but it is
extremely late in the day,” he said.
“There is still [lobbying taking
place], but I don’t think many people
are holding their breath that [there
will be] changes. The commission —
which is potentially sympathetic to
[fund managers’ concerns] — just
continued on page 7
Islamic finance
Sharia-compliant funds suffer
as the oil price plummets
and tensions in the Middle
East spook investors
PAGE 6
Fiduciary
performance
figures
revealed
CHRIS NEWLANDS
Willis Towers Watson, the consul-
tancy, has published for the first time
the performance figures for the con-
troversial fiduciary management
mandates it runs on behalf of its UK
pension fund clients.
Fiduciary management — a lucra-
tive business for consultants that
involves more “hand holding” with
pension fund clients and consequently
higherfees—hascomeunderattack.It
drew the attention of the UK regulator
after research showed three-quarters
of contracts were awarded without a
competitivetender.
Critics have accused investment
consultants of promoting the concept
of fiduciary management and then
directing clients to their own services,
implying that pension funds are sign-
ing deals with potentially unsuitable
or underperforming providers.
The performance figures provided
by Willis Towers Watson, however,
show those pension funds that signed
fiduciary management contracts
with the consultant improved their
funding levels by more than 15 per
cent over the past six years, com-
pared with a 3.7 per cent improve-
ment for the average UK pension
scheme.
Chris Ford, global head of invest-
ment at Willis Towers Watson, said: “I
do not disagree at all that transpar-
ency needs to improve but fiduciary
management is clearly better than
the current model.”
2 | FTfm
INSIDE
Face to face
To the untrained eye,
Edward Bonham-Carter,
vice-chairman of Jupiter
and older brother of
movie star Helena, is an
outlandish maverick in
the traditional asset
management industry
PAE 4
Quantitative easing
Will quantitative
tightening ever start?
We are the QE
generation — and it is
quite a burden, says
David Oakley
PAGE 8
View from the US
US officialdom is
admitting it needs to
give thought to what
could possibly go wrong
with the clockwork of
clearing houses,
finds John Dizard
PAGE 8
Asia
Regulators in China are
planning to impose
tighter rules on the
rapidly expanding money
market fund industry
PAGE 10
fm
FEBRUARY 1 2015
Editor Chris Newlands
Tel: +44 (0)20 7775 6382
e-mail: chris.newlands@ft.com
Deputy editor Madison Marriage
Tel: +44 (0)20 7873 3817
e-mail: madison.marriage@ft.com
Reporter Chris Flood
Tel: +44 (0)20 7873 3892
e-mail: chris.flood@ft.com
Reporter Sophia Grene
Tel: +44 (0)20 7873 4685
e-mail: sophia.grene@ft.com
Reporter Attracta Mooney
Tel: +44 (0)20 7775 6237
e-mail: attracta.mooney@ft.com
Production Jearelle Wolhuter
Tel: +44 (0)20 7873 4872
e-mail: jearelle.wolhuter@ft.com
Advertising manager
Rachel Padhiar
Tel: +44 (0)20 7873 3564
e-mail: rachel.padhiar@ft.com
FINANCIAL TIMES
Number One Southwark Bridge
London SE1 9HL
+44 (0)20 7873 3000
©The Financial Times Limited 2015.
Reproduction of the contents of FTfm in
any manner is not permitted without the
publisher’s prior consent. “FINANCIAL
TIMES” and “FT” are registered Trade
Marks and Service Marks of the Financial
Times Limited
Vanguard, Fidelity face proxy access row
GOVERNANCE
Shareholders fight
for right to propose
board members
ATTRACTA MOONEY
Vanguard, JPMorgan and
Fidelity Investments have
repeatedly rejected attempts
to give shareholders the right
to propose board members at
the companies they are
invested in.
Their stance has angered
other large investors who
believe shareholders should
have the right to put forward
board directors to improve
how companies are run.
JPMorgan and Fidelity, both
ranked among the world’s 10
largestassetmanagers,rejected
every shareholder proposal to
gain this right, known as proxy
access,lastyear.
Vanguard, the world’s sec-
ond-largest fund house by
assets, supported just under a
fifth of such proposals, while
Northern Trust Asset Manage-
ment voted in favour of just 2
per cent, according to the
Proxy Access Scorecard, which
lists how asset managers vote
at annual meetings in the US.
Laura Campos, director of
shareholder activities at the
Nathan Cummings Founda-
tion, a $450m US endowment
fund, said: “We are concerned
that these [companies] do not
vote in support of proxy access
proposals.
Pension stress tests show €773bn shortfall in funding
CHRIS FLOOD
Pension funds in the UK, the
Netherlands and Germany
face an “existential threat”
because of their precarious
financial positions, according
to a member of the European
parliament.
Sven Giegold, a member of
the European parliament from
Germany’s Green party, called
on lawmakers to abandon
what he refers to as their short-
sighted “ostrich-policy”
approach to pension scheme
funding.
His comments come in
response to the results of the
first stress tests of pension
funds in 17 European countries
by Europe’s top pension regu-
lator.
The results show that pen-
sion schemes across these
NEWS
BlackRock supported proxy
access proposals 93 per cent
of the time in 2015 — Craig
Warga/Bloomberg
‘Rarely does a
governance issue
cause such differences
of opinion as proxy
access has’
countries could face a com-
bined funding shortfall of
€773bn if confronted with a
significant financial shock
that triggered a further fall in
interest rates and a rise in
inflation.
The European Insurance
and Occupational Pensions
Authority (Eiopa) said the
same pension funds were
likely to face a combined fund-
ing shortfall of €428bn even if
a shock in financial markets
were avoided.
“We need an honest debate
about the lack of [pension
scheme] funding due to low
interest rates. It is unaccepta-
ble just to pretend these prob-
lems do not exist,” said Mr Gie-
gold.
He warned that the funding
position of pension schemes
could be even weaker as prob-
“There is a growing consen-
sus among institutional inves-
tors that proxy access is a key
driver of enhanced share-
holder value. Board accounta-
bility has important implica-
tions for long-term share-
holder value as well as a host of
environmental, social and gov-
ernance issues.”
Shareholders’ inability to
nominate board directors
came into the spotlight last
year after the New York City
comptroller and the New York
City pension funds submitted
proxy access proposals at 75
companies across the US.
able improvements in life
expectancy had not been
included in the tests.
Pension schemes in the UK
and the Netherlands have
some of the weakest funding
positions. The regulator calcu-
lated that the UK’s funding
deficit could jump from
around €218bn to €343bn
under stressed conditions,
while the funding deficit of
Dutch pension schemes could
increase from €66bn to
€215bn.
Jon Hatchett, a partner at
Hymans Robertson, the con-
sultancy, said UK-listed com-
panies in the FTSE 350 index
had paid £250bn into their
schemes to try and plug fund-
ing gaps since the turn of the
millennium. He said pension
scheme deficits had remained
stubbornly high, however.
FINANCIAL TIMES Monday 1 February 2016
The schemes called for
investors who held at least 3
per cent of a company’s shares
for at least three years to be
able to suggest a director.
Most corporate manage-
ment teams opposed the plans,
but the proposals gained the
support of at least half of share-
holders in 41 cases, according
to Proxy Insight, which collects
data on how investors vote at
companymeetings.
More than 100 of the largest
companies in the US have
since introduced measures to
allow shareholders to nomi-
nate board members, includ-
€218 bn to€343 bn
Increase in UK pension
schemes’ funding deficit
under stressed conditions
€66 bn to €215 bn
Increase in Dutch pension
schemes’ funding deficit
under stressed conditions
ing technology giants Apple
and Microsoft.
A spokesperson for Black-
Rock, which supported proxy
access proposals 93 per cent of
the time in 2015, said: “Boards
should be focused on long-
term shareholders’ interests,
and proxy access provides
long-term and substantial
shareholders [with] a tool to
address occasional failures in
this regard.”
T Rowe Price, BNY Mellon
Investment Management and
Legal and General all voted in
favour of proxy access propos-
als at least 90 per cent of the
time.
Nick Dawson, managing
director of Proxy Insight, said:
“Rarely does a governance
issue cause such differences of
opinion as proxy access has.”
Fidelity said it “will gener-
ally vote against management
and shareholder proposals to
adopt proxy access”, but did
not say why it takes this
approach.
JPMorgan said it does sup-
port proxy access, but believes
it should only apply to share-
holders who hold at least 5 per
cent of a company’s shares,
while Northern Trust said it
votes on this matter on a case-
by-case basis.
A spokesperson for Van-
guard said: “We believe that
long-term investors may bene-
fit from proxy access and we
have been supportive of spe-
cific proposals where we
thought it was appropriate.”
The effort by the European
regulator to develop a com-
mon methodology has also
been criticised. Its analysis has
suggested funding deficits in
many countries are far higher
than if they had been reported
under domestic rules.
Joanne Segars, chief execu-
tive of the Pensions and Life-
time Savings Association, the
UK trade body, said there was
“no justification” for the regu-
lator to use the common meth-
odology.
“Many more” pension
schemes would be forced to
close if the regulator persisted
with this approach, she said.
Mr Hatchett added: “Given
how different pensions sys-
tems are across European
countries, applying the same
tests to each one does not
make much sense.”
FINANCIAL TIMES Monday 1 February 2016 FTfm | 3

NEWS

Sovereign wealth funds drive turbulent trading

INVESTMENT STRATEGY
Low oil price forced
SWFs to become
forced sellers
ATTRACTA MOONEY
Asset managers have blamed
outflows from sovereign
wealth funds for one of the
worst starts to the year for
markets. The collapse in the
price of oil resulted in state-
backed investment vehicles
becoming “forced sellers”.
The year began with a sharp
drop in equity markets. UK
and US stocks fell almost 10
per cent in the first few weeks
of 2016 and emerging markets
were hit even harder.
Philippe Ferreira, a director
at Lyxor Asset Management,
the €116bn fund house, said
sovereign wealth funds have
been driving the turbulent
trading conditions.
“We know the sovereign
wealth funds are under pres-
sure to sell and that is contrib-
uting to the market pressure
we are seeing,” he said.
“Sovereign wealth funds
have become forced sellers,”
added Guy Monson, chief
investment officer of Sarasin &
Partners, a UK boutique
investment manager.
Governments across the
Gulf have raided their SWFs to
prop up their economies as tax
receipts fell on the back of the
slump in the price of oil. The
price dipped below $30 a bar-
rel in January for the first time
in 12 years, although it
rebounded slightly last week.
Percival Stanion, head of
Pictet Asset Management’s
multi-asset team, said: “One
corollary of the oil price fall is
that it appears to have forced
some sovereign wealth funds
in the Middle East to liquidate
some of their equity holdings.
This has intensified the equity
market sell-off.”
Sovereign funds’ importance
in global financial markets
increasedinrecentyearsonthe
back of a large rise in their
assetsundermanagement.
Oil-rich Kazakhstan has According to Capital Eco-
raided its sovereign wealth nomics, an independent
fund — Michael Gottschalk/Photothek via research company, the ratio of
Getty Images
assets managed by state funds
relative to the size of global
equity and bond markets has
increased from 5 per cent in
2007 to almost 9 per cent in
2015.
‘Sovereign wealth Michael Maduell, president
funds have become of the Sovereign Wealth Fund
forced sellers’ Institute, a US-based consul-
tancy, said state funds in need
of cash were selling so-called
liquid assets, such as high-
grade bonds and equities, in
particular.
Lyxor estimated the assets
managed by state-backed
investment vehicles in the Gulf
region have dropped by
around $300bn in recent
months.
TheSaudiArabianMonetary
Agency, which oversees the
kingdom’s foreign reserves,
withdrew about $70bn from
external managers last year to
support its economy. The
country’s state budget deficit is
currentlyatarecord high.
Oil-rich Kazakhstan has also
raided its SWF. Its assets have
fallen 16.8 per cent since
August 2014.
Greg Venizelos, a strategist
at Axa Investment Managers,
said the market turbulence
was a result of direct with-
drawals from the market and
money being pulled from
external fund houses.
Sovereign funds withdrew at
least $19bn from external asset
managers during the third
quarter of 2015, according to
eVestment, the data provider.
Aberdeen Asset Management,
Northern Trust, Franklin
Resources and Old Mutual
Asset Management have each
said they suffered redemp-
tions from government funds
in recent months.
Aberdeen said it expected
further withdrawals from
SWFs in the coming months.

C Unigestion, the $17.7bn Swiss asset

Movers
& shakers
C Guillermo Ossés has joined Man
Group, the world’s largest publicly
traded hedge fund, with $76.8bn in
assets under management, as head of
emerging market debt strategies. Mr
Ossés, who will be based in New York,
joins from HSBC.
C Susan Nash, a veteran US regulator,
is moving to the Financial Stability
Board, the body that co-ordinates
financial regulators worldwide.
Ms Nash served 26 years at the
Securities and Exchange Commission,
most recently as associate director in
the division of investment
management, where she was an
architect of US disclosure policy for
mutual funds and other investment
companies.
C The European Securities and
Markets Authority, Europe’s top
markets regulator, has appointed
Anneli Tuominen as vice-chairwoman.
Ms Tuominen, the director-general of
Finland’s financial regulator, replaces
Carlos Tavares, former chairman of
the Portuguese Securities Market
Commission, who has completed his
term in office.
C Joseph Schull has been promoted
to the role of chairman of Warburg
Pincus International. Daniel Zilberman
has succeeded Mr Schull as head of
the European business of the global
private equity manager.
manager, has hired Stefanie Mollin-
Elliott as an equities analyst covering
global small and mid-cap stocks. Ms
Mollin-Elliott, who will be based in
London, joins from Allianz Global
Investors.
Anneli C Morgan Stanley has hired Naureen
Tuominen Hassan as chief digital officer for
wealth management, fuelling talk that
the bank is preparing to launch a
robo-advisory service. Ms Hassan
joins from Charles Schwab, where she
led the development of its robo-
advisory programme.
C Tom Ding has replaced Nathan Lin
as chief executive of GF International
Investment Management, the Hong
Stefanie Kong subsidiary of Guangzhou-based
Mollin-Elliott GF Fund Management. Mr Ding will
also retain his current role as chief
investment officer, while Mr Lin has
joined Jiuheng Financial Services, an
affiliate of the Chinese asset manager
JD Capital, as its chief executive.
C The Private Equity Growth Capital
Council, the US trade body
representing private equity managers,
has hired the political veteran Mike
Guillermo Sommers as its new chief executive.
Ossés Mr Sommers previously served as
chief of staff to John Boehner, a
former speaker of the US House of
Representatives. He replaces Steve
Judge who stepped down in August.
C Acadian, the $66bn Boston-based
quantitative investment manager, has
hired Ilya Figelman as a senior
researcher. Mr Figelman previously
worked for AllianceBernstein.
4 | FTfm
Jupiter’s
vice-chairman
dodges
M&A talk
EDWARD BONHAM-CARTER
Maverick loves yoga,
bowler hats — and a
traditional 38.5% net profit
MADISON MARRIAGE
T
o the untrained eye,
Edward Bonham-Carter,
vice-chairman of Jupiter,
the UK investment
house, and older brother
of movie star Helena, is an outlandish
maverick in the highly traditional
asset management industry.
The 55-year-old, who supposedly
failed his probation period in his first
asset management job at Schroders
because he wore brown shoes instead
of black, is more flamboyant and
talkative than his sensibly dressed,
tight-lipped peers.
Asset management executives tend
to fumble awkwardly when asked
what they do outside of work, usually
settling on the safe options of golf or
running. One chief executive even
told FTfm he liked to read annual
reports in his spare time.
Not Mr Bonham-Carter, who
openly discusses his love of yoga, his
appreciation of the bowler hat, play-
ing the trumpet “badly” and regular
walks with his cockapoo, Daisy, on his
day off on Fridays.
Even his new headquarters in Lon-
don’s St James’s is unconventional. A
colourful lobby features trendy 1950s
armchairs and coffee tables that
resemble fish tanks, complete with
bobbing plastic goldfish.
But appearances can be deceiving.
On many subjects, Mr Bonham-
Carter, who became vice-chairman of
Jupiter in 2014 after a 14-year stint as
the company’s chief executive, has
the hallmarks of traditionalism.
On the question of cost transpar-
ency, which academics, consumer
activists and a small number of
industry executives argue is severely
lacking in asset management, Mr
Bonham-Carter says he is content
with the status quo.
“People can quite clearly see if their
fund manager has done a good job for
them, because their return is net of
Born 1960
Total pay £160,000 (based on
a four-day week)
Education 1979-82 Degree in
economics and politics, University
of Manchester
Career 1982-86 Schroders
1986-94 Electra Investment Trust
1994 UK fund manager, Jupiter
1999 Chief investment officer,
Jupiter
2000 Joint group chief executive,
Jupiter
2007 Group chief executive,
Jupiter
2014 Relinquished role as group
chief executive, took up role as
vice-chairman, Jupiter
FACE TO FACE
every single charge possible,” he says.
“People often say [that investors]
can’t get an insight as to transaction
charges. You can if you look at the
[fund] reports.”
He again adopts the industry line
when discussing whether asset man-
agement businesses make too much
money — a question the UK regulator
is debating as part of its investigation
of the fund industry.
Investment companies typically
report net profit margins of 30-40 per
cent, far outpacing those in some of
the world’s most profitable sectors.
Mr Bonham-Carter says: “Yes, there
are a number of very profitable asset
management companies. I think if
you run a business of reasonable scale,
it is not an unusual level. If you run a
profitable high-tech software com-
pany, which is also people intensive
and has low capital intensity, there are
similarsortsofmargins.”
Jupiter recorded net profit margins
of 38.5 per cent in 2014. The share
price of the UK-listed group, which
recently reported a 12 per cent
increase in assets in 2015, to £35.7bn,
rose 8 per cent over the past year.
These eye-catching figures are
partly behind recurring suggestions
from analysts that Jupiter would
make an attractive takeover target.
Mr Bonham-Carter, one of the com-
pany’s 10 largest shareholders, with a
2.6 per cent stake, bats this away.
“I don’t think I can comment on
takeovers,” he says, looking uncom-
fortable for the first and only time
during the 60-minute interview.
However, he then adds: “If you are a
public company, yes, there is always a
possibility of a takeover. I think in a
business that is people based, it would
be surprising if [a takeover bid] was
hostile or unexpected.
“All we can do as a business is carry
on doing a good job for our customers.
That provides the revenues that allow
youtoattractthebeststaff,andtocon-
tinue to produce performance, and
therebyshareholdersgettheirreturns.
It is a pretty simple formula to state,
butitisratherhardtoexecute.”
Mr Bonham-Carter, who oversaw
Jupiter’s stock market listing in 2010
and its management buyout from
Commerzbank, the German lender,
in 2007, would clearly have less of a
role in any future corporate restruc-
turing. But he claims he doesn’t mind.
“I am coping with the lack of
stress,” he says. “I did my role for 14
FINANCIAL TIMES Monday 1 February 2016
Jupiter
Founded 1985
Assets under management
£35.7bn
Employees 420
Headquarters London
Ownership UK-listed business
years, and I think that is more than
enough. What do I miss most? I sup-
pose talking to shareholders. That
was always fun.”
The vice-chairman, who also sits
on the board of Land Securities, the
property developer, and Esmée Fair-
bairn, a foundation that supports the
arts, believes company engagement is
one area where the industry has a lot
of room to improve.
“Too many acquisitions are waved
through by shareholders. I think eve-
ryone needs to up their game [in
terms of engaging with companies].
We are spending more time and
resources doing that,” he says.
He also acknowledges that volatile
markets, the booming popularity of
low-cost passive funds and weaker
global growth prospects are all likely
to make life harder for active fund
managers over the long term.
“Asset management companies
come in and out of fashion, and we
should not be complacent. Are we
entering more tricky periods? More
volatile periods? Absolutely.”
Mr Bonham-Carter, who has a keen
interest in behavioural psychology,
saysJupiterisanalysingfundmanager
“resilience” in light of these pressures.
“Lots of people have stressful jobs,
but fund management has a particu-
lar stress. Rather like sport, it is quite
clear to the outside world if you are
doing well or badly, and you can
measure that on a daily basis. That is
why it is such an interesting, but also
demanding, profession,” he says.
But the University of Manchester
graduate believes he is in a good place
to react to the shifts looming in the
industry over the next 10 years.
“Too often in business you can get
quite introverted and be less aware of
the big industry trends happening
around you. I can be a bit more lateral
in my [position as vice-chairman].
That is an advantage.
“A number of our fund managers
work from home. I think that is good.
When you are sitting in your garden
or walking the dog, you see connec-
tions that may not have occurred to
you in front of the flickering screen or
looking at your Twitter feed.”
The executive, who is yet to begin
using his Twitter account, adds: ”I
sound like an old man. That is
because I am.”
Asset Management
6 | FTfm
Sharia-
compliant
fund sales
plummet 75%
The drop in the price of oil and
tensions in the Middle East spook
investors, writes Attracta Mooney
T
he fall in the oil price has
claimed another victim.
Sharia-compliant funds
have suffered their worst
sales in four years as the
price of oil plummets and tensions in
the Middle East spook investors.
Sales of the products, which avoid
companies that make money from
the sale of alcohol, pork and pornog-
raphy, as well as meeting other prin-
ciples of Islamic finance, fell more
than 75 per cent last year compared
with 2014.
The slowdown is a big setback for
the fledgling $60bn Islamic fund
industry, which only began finding its
feet in recent years, and raises ques-
tions about the products’ prospects.
“The money is not flowing into
Islamic fund managers,” says Mustafa
Adil, head of Islamic finance at
Thomson Reuters, the data provider.
“People are not as bullish as they were
in previous years. And that will have
an impact on growth.”
As recently as 2013, the Islamic
fund industry was growing at a rate of
10 per cent a year.
However, because a large number
of investors in Islamic funds are
based in countries dependent on oil
or commodities for their wealth, the
fall in the price of oil has had a large
impact on sales, says Tariq Al Rifai,
executive director of Failaka Advi-
sors, a consultancy that specialises in
Islamic finance.
The price of oil has more than
halved since the middle of 2014,
dropping to under $30 a barrel last
week.
“This has caused investor confi-
dence to go down and resulted in
them pulling their money out of
Islamic funds,” says Mr Al Rifai.
Just $584m was invested in sharia-
compliant funds globally last year,
compared with almost $2.4bn in
2014, according to Morningstar, the
data provider.
Mr Adil says the challenging politi-
cal situation in the Middle East and
north Africa, where the regions are
grappling with the rise of Isis, the ter-
rorist group, and tensions between
Saudi Arabia and Iran, has dented
sales of sharia-compliant funds fur-
ther.
“There is a perception problem.
Investors are planning for a difficult
route ahead and so are diverting
assets to developed markets or to
conventional funds,” he says.
It is a big change in sentiment from
the turn of the decade, when consult-
ants and researchers waxed lyrical
about “the vast potential” of the
Islamic fund management industry.
The idea was that the world’s 1.7bn
Muslims were becoming wealthier
and so would have more money to
invest. The industry was also hoping
to appeal to investors interested in
screening out so-called sin stocks, as
well as attracting those looking for
exposure to companies in areas such
as the Middle East, where a large
chunk of sharia-compliant funds is
based.
Asset managers responded to the
growth outlook for Islamic funds by
launching a record number of sharia-
compliant products in 2014, up 49
per cent on 2013, according to
research by Thomson Reuters.
Many of these funds are run by
local providers, but some global asset
managers decided to take part in
recent years, including Franklin
Templeton, the $763.9bn US fund
house, and Aberdeen Asset Manage-
ment, the listed UK company.
But few other global fund houses
are expected to now follow suit,
thanks to the series of woes facing
sharia-compliant funds, says Mr Adil.
Even before the price of oil fell,
Islamic funds were grappling with
several structural problems, such as
their small size, says Mr Al Rifai.
About half of the sharia-compliant
THE BIG PICTURE
$584m $2.4bn
The amount The amount
invested in sharia- invested in sharia-
compliant funds compliant funds
globally last year globally in 2014
Iran
‘The world’s largest
untapped market’
Within hours of the lifting of
sanctions that had left Iran outside
the global economy for more than
a decade, the president promised a
flood of international investment
into the country.
Just a week later, Griffon Capital,
an Iran-focused asset manager,
launched a fund to provide global
investors access to “the world’s
largest untapped market”. The
Griffon Iran Flagship fund wants to
raise €100m from European
investors.
Mustafa Adil, head of Islamic
finance at Thomson Reuters, the
data provider, says: “Our view is a
lot of capital is going to flow into
Iran. A lot of that will go into
sharia-compliant funds.”
funds available globally have assets
undermanagementoflessthan$10m,
according to Thomson Reuters’ 2015
study on Islamic funds. Only 8 per
cent manage assets of at least $100m,
usually considered the minimum a
fund needstobe profitable.
Mr Adil links the low level of assets
to a lack of investment from institu-
tional investors. “Unless you can
attract pension funds, sovereign
wealth funds or the insurance indus-
International asset managers
are also looking at Iran, which is
the Middle East’s second-largest
economy, says Roger Matthews, a
senior director at Dechert, the law
firm.
“Many investment firms may
now be seriously considering
setting up viable operations in the
country for the first time in order
to capitalise on the significant
wealth of the nation,” says Mr
Matthews.
But he warns that fund houses
with large operations in the US
should tread carefully, because
many of the US’s primary
sanctions remain largely
unaltered.
“Our expectation is [that] at this
stage many of the larger and more
established asset managers will
not want to risk regulatory or
reputational US consequences by
going into Iran too soon,” he adds.
FINANCIAL TIMES Monday 1 February 2016
try, it is very difficult to address the
challenge of scale,” he adds.
Muslim retail investors are also
more likely to choose conventional
funds over sharia-compliant prod-
ucts, partly because of performance
issues, says Muna Abu-Habsa, senior
research analyst at Morningstar.
“Sharia funds tend to underper-
form equivalent conventional funds
because of their restricted invest-
ment universe,” she says.
“Companies misaligned with sharia
law, such as beer brewers and ciga-
rette producers, may be unethical,
but these are companies that often
offer stable, dividend-paying
returns.”
Franklin Templeton’s Shariah Glo-
bal Equity product has returned 4.8
per cent over the past three years. In
contrast, an investor who put money
in a fund tracking the MSCI ACWI
index, which provides exposure to
global equities, would have been up
11.26 per cent.
A further issue is the lack of suita-
ble products, says Zak Hydari, chief
executive of Rasmala, a UK-listed
asset manager that offers a range of
sharia-compliant funds. “The sharia-
compliant asset management indus-
try is still in its infancy and in times of
volatility investors are faced with a
lack of product range, quality and
alternatives, which adversely
impacts flows.”
Despite the challenges, there are a
few bright spots, says Mr Hydrai. The
gradual opening up of Saudi Arabia’s
 FINANCIAL TIMES Monday 1 February 2016 FTfm | 7

THE BIG PICTURE

Islamic funds: the rise of a niche industry ‘Seismic’ ment Association, the trade
body, said a quarter of newly
instruments cannot support
pre-trade transparency. We
even further if these measures
are introduced.”
Assets under management ($bn)
shock for issued bonds would be
“wrongly described” as liquid
need to think carefully about
what applying pre-trade trans-
But he was pessimistic about
whether the final rules will
60
bond liquidity under the proposals. parency to truly illiquid heed these concerns. “People
50 The fear is that instead of instruments will do to the posi- are still talking to the commis-
buying and selling bonds, tion of European [markets].” sion, but it would be a huge
40 continued from page 1 banks will retreat from the The asset management piece of work to completely
30 does not have the resources to market because they will be executive added: “Esma has [rewrite Esma’s proposals],”
amend the regime itself.” vulnerable to more nimble got it wrong on pre-trade he said.
20 The European Commission market participants taking transparency. It has caught a Once the commission has
did not respond to a request contrarian positions before very wide number of instru- finalised the rules, they will be
10 for comment. they can protect themselves ments [in the scope of its pro- voted on by the European par-
Arjun Singh-Muchelle, sen- against losses. He said: “This is posals]. Undoubtedly fixed liament, where it is possible
0
ior adviser at the UK’s Invest- a major concern for us. These income liquidity will decline that MEPs will reject them.
2008 09 10 11 12 13 14
Source: Thomson Reuters

The opening up of markets and the loosening of sanc-

Saudi Arabia’s tions against Iran will offer new
markets will offer investment opportunities for these
new investment funds.
opportunities for “The opening of Saudi Arabia to
sharia-compliant international investors and lifting of
funds, which have Iranian sanctions is significant
suffered from the Asset Management
because these two countries are home
et Management
drop in the oil price to some of the largest pools of sharia- Asset Management
sset Management
Fayez Nureldine/AFP/Getty Images;
Marwan Naamani/AFP/Getty Images
Asset Man
compliant capital globally,” agement
he says.
“For the first time, fund managers
and other investors will be able to
invest in a wide range of companies
and other assets in both markets.”
Some investors keen to gain access
to these markets are expected to
come through sharia-compliant
funds, especially in Saudi Arabia.
Along with Malaysia, it is the biggest
market for sharia funds. This would
prove a welcome boost for assets
under management.
And despite last year’s sluggish
sales, assets under management in
sharia-compliant funds are expected
‘Sharia funds to grow by around 5 per cent to reach
$77bn by 2019, according to a report
tend to from the Malaysia International
underperform Islamic Financial Centre, a group that
promotes the Asian country as an
equivalent Islamic finance hub.
conventional Fund houses looking to make a lot
of money must have patience, how-
funds because ever.
of their Asset Management Thusitha De Silva, a director at Cer-
ulli, the research firm, says: “This is
restricted an area that requires a long-term
investment commitment. Asset managers should
not to expect to make returns straight
universe’ away.”

We are the QE generation, and it is quite a burden
COMMENT
David
Oakley
W
ill quantitative easing
ever properly end? To
put it another way,
will quantitative
tighteningeverstart?
As some investors worry that the
US Federal Reserve may have made a
big policy mistake by raising rates in
December, others warn that uncon-
ventional loosening of monetary pol-
icy is in effect with us for life.
It is almost like having an illness
that is not life threatening but can
never be cured. It will not kill us, but
we will have to live with it until we
die. We are the QE generation — and it
is quite a burden.
In the US and UK, the authorities
have stopped buying assets but they
still hold them, and some investors
say they are unlikely to sell in a move
to bring about quantitative tighten-
ing, or QT, because of the problems it
might create for markets. This means
Clearing house push created unforeseen systemic risks
“In our assessment, contagion risk is
actually higher than current measures
indicate.”
Office of Financial Research,
US Treasury, 2015 annual report
to Congress, January 27 2016
“All the acceptance banks and houses are
in greater or lesser degree insolvent.”
Montagu Norman, partner, Brown,
Shipley and future governor of the
Bank of England, July 27 1914
US officialdom is admitting it needs
to give thought to what could possibly
go wrong with the clockwork of the
securities and derivatives clearing
houses, or CCPs, that process trades
on behalf of financial institutions.
The reformers among them had
been convinced that forcing banks to
move uncollateralised, trust-me,
bilateral swaps transactions into col-
lateralised, marketable instruments
traded on CCP platforms would do
much to end systemic risk.
Now they see that there are some
QE will only properly end when all
the bonds purchased mature. This is
July 2068 in the case of the UK, when
most of the current batch of market
participants have retired or moved to
the great trading room in the sky.
For fund managers, it means gov-
ernment bonds may have a more last-
ing appeal as yields remain lower for
longer because of an underlying
demand for safe assets in a world
where the debt overhang holds
growth back for years.
Some investors, particularly those
who run money in the emerging mar-
kets, are even starting to question the
Fed’s decision to stop their asset-buy-
ing programme.
“It is entirely possible that the Fed
has miscalculated the impact on mar-
kets of taking away the punchbowl of
quantitative easing,” says James Bar-
rineau, an emerging market debt
fund manager at Schroders, the fund
house.
He adds more ominously: “If the
Fed is bent on a hiking cycle predi-
cated on indicators of full employ-
ment while ignoring the feedback
from the markets, it is hard to see the
emerging markets improving.”
Others warn that central bankers
may be close to policy paralysis,
unforeseen consequences to their
attempt to shift risks from taxpayer-
underwritten banks to “the market”.
There is already too little specula-
tive capital available to moderate the
volatility in fixed income, currency,
and commodities prices. It is dawning
on the regulators that in any serious
financial crisis, the shortage of dealer
capital would make it very difficult
for the securities and derivatives
clearing systems to work effectively.
Unfortunately, market illiquidity
seems to be metastasising into more
dangerous forms. The most serious, I
believe, is the spread of formal and
informal capital controls. Those are
what led to the rather sudden end of
the last great period of globalised
finance (and international trade
growth) in July 1914.
It does not seem as though the
major central banks and market reg-
ulators have recognised the systemic
risk to their clearing and settlement
systems created by restrictions on the
international movement of capital. It
was surprising, for example, to read
that Governor Kuroda of the Bank of
Japan believes that China should
tighten its capital controls further.
The problem is that in volatile or
discontinuous markets, clearing
houses do not eliminate risks, but
rather concentrate them on the clear-
OPINION
where they are powerless to contain
the feverish animal spirits in the mar-
kets, whatever they do.
“Quantitative easing may have
helped avert a global recession fol-
lowing the financial crisis, but it has
‘No one thought
about the exit strategy
for QE. And the more
bonds you buy, the more
difficult it is to exit’
inghouses’ own balance sheets.
In orderly markets with prices that
trend in a relatively smooth way from
day to day or hour to hour, the margin
postings that are the real basis for
CCP stability can be met with calls on
clients for cash or liquid securities. In
disorderly markets, though, there
can be a problem getting money-los-
ing customers to provide margin
quickly enough.
Over the past couple of years, large
banks have been arguing that for-
profit CCPs are not as well capitalised
as they should be to deal with the
potential failure of large participants.
The CCPs pushed back, replying that
their risk management is perfectly
adequate, and that the banks just
want to hold on to profitable interme-
diation of custom swaps trades.
Other problems with increased
dependence on CCP cleared transac-
tions have emerged, including a pro-
spective shortage of eligible collat-
eral, such as Treasury securities, that
was created in large part by central
banks’ quantitative easing.
How can CCP users put up enough
liquid securities for trading margin in
volatile markets when most of those
securities have been bought up by the
central banks? These are the same
central banks that are administering
new trading rules that require more
not succeeded in boosting inflation
expectations,” says Steven Major, glo-
bal head of fixed income research at
HSBC, the bank. US five-year forward
rates, a measure of inflation expecta-
tions, have dropped to their lowest
level since March 2009, when mar-
kets feared the financial world was
about to implode and lead to a full-
blown depression.
In a research note entitled “Quanti-
tative Exhaustion”, Mr Major warned
that the world could be threatened by
a deflationary spiral as policy actions David Oakley is the FT’s
fail to raise aggregate demand and corporate affairs correspondent
US officialdom is admitting
it needs to give thought to
what could possibly go
wrong with clearing houses
dealer capital and more rapid posting
of margin by the dealers’ clients.
The leadership groups of major
banks and asset managers were ear-
nestly discussing all of this with sen-
ior officials last autumn, and getting
sympathetic head nods in response.
An informal consensus emerged that
reforming the post-crisis laws and
regulations once again could not be
seriously discussed until after the
2016 US election.
On Wednesday of last week, the US
Treasury’s Office of Financial
Research, which is supposed to iden-
tify systemic risks, put out its 80-page
debt burdens continue to rise.
The problems of high debt were
also referred to by Gertjan Vlieghe, an
external member of the Bank of Eng-
land’s Monetary Policy Committee, in
a speech last month.
“A high-debt economy faces head-
winds and needs lower interest rates.
A high-debt economy with adverse
demographic trends needs even
lower interest rates,” he said.
In the UK, QT is definitely off the
agenda.
One manager of government debt
says: “The governments will have to
let the bonds they have bought run
off, which means holding some of
them for years until they mature.”
He adds: “The problem is that no
one thought about the exit strategy
for QE. And the more bonds you buy,
the more difficult it is to exit.”
This is something Mario Draghi,
president of the European Central
Bank, should consider as he prepares
to expand QE in the eurozone. It may
lift markets — but the more QE he
does, the more potential problems he
is storing up for the future and the
debt-burdened QE generation.
annual report. This dutifully incorpo-
rated 69 references to CCPs, including
some reasonable “next steps” for
research and problem identification.
There were, however, exactly zero
references in the report to capital
controls. That meets the usual stand-
ard for official forecasts. Had there
been a similar Bank of England report
published in January 1914, it is very
unlikely there would have been any
references to the systemic financial
risks that would be posed by a pan-
European war.
The major British financial institu-
tions were well capitalised, soundly
managed and capable of dealing with
any of the problems that had come up
within living memory. But there was
no living memory of the sort of pay-
ments disruptions that happen at the
beginning of a global conflict.
When war became imminent in
late July 1914, the normal clearing
and settling of well-collateralised
international transactions suddenly
stopped. The “acceptance banks and
houses” to which Montagu Norman
referred in the quote at the beginning
were the supposedly low-risk CCPs of
the day.
We now seem intent on making the
same mistakes the major powers
made back then, without even the
excuse of wartime necessity.
10 | FTfm
China tightens money market regulation
ASIA
Doubts over whether
new rules will protect
investors adequately
R
egulators in China are
planning to impose
tighter rules on the rap-
idly expanding money
market fund industry —
an industry that has transformed the
way millions of Chinese invest their
savings.
But there are serious doubts over
whether the new rules, which are
expected to be in place by February,
will protect investors adequately.
Observers say more should be done
to bring standards for China’s money
funds in line with those in the US and
Europe.
“The reforms are moving in the
right direction, but we would also like
to see further improvements in the
industry’s ability [to manage] risk
and more alignment with interna-
tional best practice,” says Steve Lee,
head of China and Taiwan for HSBC
Global Asset Management.
China’s money market fund indus-
try is only a decade old but its rise has
been fast, driven by high retail
demand for online funds managed by
large domestic internet companies
such as Alibaba, Tencent and Baidu.
Assets under management hit
Rmb4.4tn (around $710bn) at the
end of 2015, more than half of the Chi-
nese fund industry’s total assets,
according to HSBC.
Fitch, the rating agency, says the
new regulations will strengthen
industry practices, foster greater
investor protection and lower risk.
But Charlotte Quiniou, a director at
Fitch in Paris, adds a note of caution.
She says: “The regulations still permit
Chinese money funds more latitude
in taking investment risk than Euro-
pean or US money funds.”
Although regulators have reduced
the permissible leverage ratio of Chi-
nese money market funds from 40
per cent to 20 per cent, leverage is not
allowed in the US and is limited to 10
per cent in Europe, according to Ms
Quiniou.
The liquidity requirements for
assets held by Chinese money market
funds are also less stringent than in
the US or Europe.
The range of instruments that Chi-
nese money funds can use has been
broadened under the new rules,
potentially exposing them to greater
risks.
Investments in negotiable certifi-
cates of deposit, a tradeable security
based on savings accounts at banks
and other institutions, have been per-
mitted for the first time. But there are
questions over the suitability of these
instruments for money funds.
“The [negotiable certificates of
deposit] market is relatively new and
FINANCIAL TIMES Monday 1 February 2016
NEWS
est rates than bank deposits, Mr Wolf
says many retail investors only look
at the yields on offer and do not fully
understand the risks.
“It is vital for China’s regulators to
strengthen the risk controls [fur-
ther],” he says.
The push for reform is being driven
not only by the rapid growth of
China’s money fund industry, but also
because liquidity strains are evident.
In 2013, several Chinese money
funds temporarily “broke the buck”,
meaning they could no longer guar-
antee that investors would get $1 back
for every $1 invested.
Observers worry that a repeat of
such an event might disrupt the pro-
vision of short-term financing to
China’s corporate sector, at a time
when the country’s financial system
is already showing signs of stress.
Robert Pozen, senior lecturer at the
Massachusetts Institute of Technol-
ogy’s Sloan School of Management,
says the real test will come when
money funds start to make losses as a
result of bond defaults.
“Until now the Chinese govern-
ment has allowed only a small
number of companies to default, but
that is likely to rise in the future. That
will be the test as to whether the bond
ratings by China’s local rating agen-
cies were any good,” he says.
Although the new rules should the-
oretically reduce yields and hamper
Growth in the ability of managers to effectively demand for money funds, observers
China’s money China’s 10 largest money trade these securities, notably during
‘A triple A believe problems in China’s stock
market fund market funds periods of stress, remains untested,” rating by a market mean investors are likely to
industry has Assets under management* ($bn) says Ms Quiniou. view money funds as a safer place to
been driven by The new rules also allow money
local rating put their money.
Yu’e Bao
high retail 95 funds to invest in lower-quality cor- agency is This is despite the fact that the
demand for Fortune SG Money Market Fund A porate bonds, with the minimum eli- yields on offer have already dimin-
online funds
34.2
gible rating level reduced to AA+
not the ished, falling over the past two years
ICBCCS Money Market Fund
managed by 29.6 from AAA. same as to a range of between 1.8 and 6 per
internet BOC Money Market Fund B This has raised questions about the cent, partly due to rising competition
companies such 20.3
rigorousness of Chinese rating agen-
that between providers.
ChinaAMC Money Market Fund B
as Alibaba 20.2 cies when evaluating assets held by issued by Alibaba’s Yu’e Bao, the biggest Chi-
Brent Lewin/Bloomberg
GF Money Market Fund B money funds. nese money market fund, now offers
19.8 “A triple A rating by a local rating
a [global] an annualised seven-day yield of 2.7
ChinaAMC Money Market Fund A
16.2 agency is not the same as that issued rating per cent, down from a peak of more
by an international rating agency,” than 6 per cent.
CCB Principal Tianli Money Market Fund
16.1 says Alex Wolf, emerging markets
agency’ Mr Pozen says: “The volatility in
Industrial Tianli Money Market Fund
15.2 economist at Standard Life Invest- Chinese equity markets could spur
ChinaAMC Wealth Money Market Fund ments, the UK fund house. growth in the near-term as investors
12.4 Although millions of ordinary Chi- look for a safer home for their
* As of Sep 30 2015 nese have been drawn to money money.”
Source: Thomson Reuters Lipper funds because they pay higher inter- Mr Wolf agrees: “Any time there is a
sell-off in the equity market, we see
massive inflows into money funds.”
Yu’e Bao shopping, Alibaba, the brainchild of to Alibaba’s Stewart Aldcroft, Asia chief
Jack Ma (pictured). blog, executive of CitiTrust, the securi-
Alibaba’s Technology has played a vital role Alizila, ties and fund services arm of Citi-
success story in the growth of Yu’e Bao. Millions of the vast group, questions the notion that
customers use Alibaba’s online and majority the money market reforms are a
Yu’e Bao, which translates as mobile payment app, Alipay, to of Yu’e Bao precursor to stricter rules for
“leftover treasure”, has grown into convert the idle cash they have in users are other parts of China’s asset man-
China’s largest money market fund their accounts into units of a money under the age agement industry.
in under three years. It is also the market fund. of 30. This is because policymakers’ main
world’s fastest growing mutual fund. Yu’e Bao currently has more than One in seven Yu’e objective at present seems to be
It was set up in June 2013 as a 260m users, an increase of 42 per Bao customers are from rural China, restricting capital outflows in the face
joint venture between Tianhong cent over the past 12 months, and where low-income families use the of the renminbi’s rapid depreciation
Asset Management and the world’s its assets stand at around fund as a low-cost wealth against the dollar.
most popular destination for online Rmb620.7bn ($94.4bn). According management tool. “China’s regulators have many
other concerns to focus on,” he says.
FINANCIAL TIMES Monday 1 February 2016
Endowments failed by reality of low returns
THE LAST WORD
Stephen
Foley
T
here are plenty of people
hoping for a resumption
in the long equity market
bull run, but few are will-
ing it as furiously as the
investment managers of America’s
university endowments.
Without it, many US colleges and
universities will have to scrap their
ambitious investment goals and
make hard choices about their spend-
ing. This is the reality of an era of low
returns: the risk of cuts to financial
aid for students, teaching budgets
and campus building projects.
Not even the “endowment model”
of diverse portfolios stuffed with
alternative assets, pioneered at Yale,
can deliver what is needed, it seems.
The latest snapshot of investment
returns, from the annual study by the
National Association of College and
University Business Officers
(Nacubo) and Commonfund, the
asset manager, painted a sorry pic-
ture: the average endowment
returned just 2.4 per cent in the most
recent fiscal year.
If your response to that is, “hey,
that’s not so bad when the US stock
market returned 1.4 per cent includ-
ing dividends” in 2015, then be aware
that endowments tend not to go by
the calendar year and Nacubo is
counting annual returns only up to
June 30. That is before the China
meltdown and fears for global growth
knocked still more off the equity mar-
kets. Endowments’ current fiscal year
could look even more gruesome.
The 10-year return of the average
endowment has fallen to 6.3 per cent,
far below the typical target of 7.5 per
cent they say they need to maintain
purchasing power after spending,
inflation and investment manage-
ment costs.
This is no aberration. The trailing
10-year return peaked at 7.1 per cent
in 2013 and 2014, having clawed its
way to that level as the world econ-
OPINION
omy recovered from the financial cri-
sis. The last time the trailing 10-year
return was above 7.5 per cent was in
2007 at the peak of the last bull mar-
ket. For the average endowment to
get above this, markets will not only
have to stage a rebound from their
current malaise but will also have to
avoid a recession until after the dev-
astation wreaked by the crisis in 2008
falls out of the 10-year number.
“Fiscal year 2015’s lower average
10-year return is a great concern,”
said John Walda, chief executive of
Nacubo. “On average, institutions
derive nearly 10 per cent of their
operating funds from endowments.
Lower returns may make it even
tougher for colleges and universities
to adequately fund financial aid,
research and other programmes that
are vital to institutions’ missions.”
The difficulties are mounting
quickest at the universities least able
to deal with them, those with smaller
endowments. For Ivy League schools
and others with funds that have $1bn
or more in assets, 10-year returns
averaged 7.2 per cent as of last June,
while funds of $100m or less averaged
The median university
endowment has $115m
in assets, versus the
$36bn of a Harvard
or the $26bn of a Yale
less than 6 per cent. Smaller schools gifts to Ivy League schools, this is the
have less ability to diversify into
expensive and hard-to-access private
equity and venture capital funds,
which performed better than public
equities, at least recently.
These poorer universities are also Stephen Foley is the FT’s
less likely to be able to negotiate fee US investment correspondent
FTfm | 11
breaks from asset managers.
If investment returns are not going
to allow endowments to maintain
their purchasing power, the only
alternative to budget cuts is a new
emphasis on fundraising. On that
front, there was some encouraging
news last week. The Council for Aid to
Education found that US colleges and
universities attracted a record
$40.3bn in charitable donations in
calendar year 2015.
The trouble is that those donations
flowed mainly to the largest and
already richest institutions.
Nacubo found that the median uni-
versity endowment — which has
$115m in assets, versus the $36bn of a
Harvard or the $26bn of a Yale —
shrank 0.7 per cent in the year to June
2015. Away from the lavish ceremo-
nies celebrating record philanthropic
reality for most US endowments, and
it is why their investment staff, their
faculty and their students will all be
hoping for another equity bull run.
12 | FTfm FINANCIAL TIMES Monday 1 February 2016

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managers/operators will normally deal on the * Indicates funds which do not price on
price set at the most recent valuation. Fridays.
The prices shown are the latest available Other explanatory notes are contained in the
before publication and may not be the current last column of the FT Managed Funds Service.
dealing levels because of an intervening
portfolio revaluation or a switch to a forward Prospectus data, price histories, charges and
pricing basis. The managers/operators must risk analytics on the funds within these pages
deal at a forward price on request, and may is available online at www.ft.com/funds.

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

Managed Ser A (Life) 1531.90 1621.00 -0.80 - Ashmore SICAV Local Currency Fund $ 79.29 - 0.40 0.32 Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9749.00 - -171.00 0.93

ACPI Global UCITS Funds Plc (IRL) Managed Ser A (Pensions) 1013.50 1066.80 -0.70 - EM Mkts Corp.Debt USD F $ 81.25 - 0.45 9.18 Bank of America Cap Mgmt (Ireland) Ltd (IRL)
www.acpishard.com Regulated
Regulated Formerly Target Life Assurance Ltd EM Mkts Loc.Ccy Bd USD F $ 73.10 - 0.71 4.41 Global Liquidity USD $ 1.00 - 0.00 0.44 Braemar Group PCC Limited (GSY)
ACPI Emerging Mkts FI UCITS Fund USD A $ 103.47 - 0.69 0.00 100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603 Regulated
Managed (Life) 1556.30 1638.20 -1.00 - UK Agricultural Class A £ 1.25 - -0.02 0.00
ACPI Global Credit UCITS Funds USD A $ 13.83 - 0.02 0.00
Managed Growth (Life) 481.80 507.10 -0.30 -
Artemis Fund Managers Ltd (1200)F (UK) Barclays Investment Funds (CI) Ltd (JER) UK Agricultural Class B £ 1.37 - -0.02 0.00
ACPI Global Fixed Income UCITS Fund USD A $ 152.25 - 0.15 0.00 57 St. James's Street, London SW1A 1LD 0800 092 2051 39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800
Managed (Pensions) 6079.40 6399.30 -5.60 - Authorised Inv Funds FCA Recognised Student Accom Class B £ 0.55 - -0.17 0.00
Q ACPI India Fixed Income UCITS Fund USD A $ 9.69 - -0.04 - Bond Funds
Artemis Capital R ACC 1219.44 1288.49 8.77 1.24
Managed Growth (Pensions) 583.00 613.70 -0.50 - Sterling Bond F £ 0.46 - 0.00 3.34
ACPI India Fixed Income UCITS Fund USD A3 $ 82.89 - -0.31 0.00
Artemis European Growth R Acc 239.20 252.44 1.25 1.17
additional fund prices can be found on our website
Aspect Capital Ltd (UK)
ACPI International Bond UCITS Fund USD A $ 18.00 - 0.01 0.00
Artemis European Opps R Acc 73.74 77.83 0.38 0.80 Other International Funds
Aspect Diversified USD $ 461.74 - 14.50 0.00 Baring Fund Managers Ltd (1200)F (UK)
Artemis Global Emg Mkts I GBP Acc 77.64 - 1.02 - Dealing and Enquiries 020 7214 1004
Aspect Diversified EUR € 277.27 - 8.62 - Fund Information: www.barings.com
ACPI Select UCITS Funds PLC (IRL) Artemis Global Emg Mkts I GBP Dist 77.65 - 1.03 - Authorised Inv Funds
Regulated Multi Asset A Acc ... C 149.10 - 0.60 1.51
Aspect Diversified GBP £ 142.14 - 4.57 0.00 Brown Advisory Funds plc (IRL)
ACPI Balanced UCITS Fund USD Retail $ 13.28 - 0.04 0.00 Artemis Global Energy R Acc 19.75 20.97 0.41 0.00 http://www.brownadvisory.com Tel: 020 3301 8130
Aspect Diversified CHF SFr 132.45 - 4.10 0.00 Multi Asset A Inc ... C 142.20 - 0.50 1.28 FCA Recognised
ACPI Balanced UCITS Fund EUR Retail € 10.01 - 0.03 0.00
Algebris Investments (IRL) Artemis Global Growth R Acc 174.38 184.01 0.61 0.81 Brown Advisory US Equity Growth Fund USD B $ 20.64 - 0.32 0.00
Regulated Aspect Diversified Trends USD $ 132.39 - -0.56 0.00 Charity Fund
ACPI Balanced UCITS Fund GBP Retail £ 10.12 - 0.03 0.00 Artemis Global Income R Acc 91.05 96.19 0.55 4.12 Enquiries 020 7214 1763
Algebris Financial Credit Fund - Class I EUR € 130.69 - 0.13 0.00 Brown Advisory US Equity Value Fund USD B $ 10.27 - -0.08 0.98
Aspect Diversified Trends EUR € 132.48 - -0.56 0.00 Targeted Return Fund Acc 140.30 141.10 0.60 2.92
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Artemis Global Income R Inc 73.32 77.46 0.45 4.29
Algebris Financial Income Fund - Class I EUR € 108.96 - -0.55 0.00 Brown Advisory US Flexible Equity SRI Fund USD B $ 12.94 - -0.08 0.39
Aspect Diversified Trends GBP £ 137.67 - -0.58 0.00 Targeted Return Fund Inc 107.50 108.00 0.50 2.97
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - Artemis Global select R Acc 70.96 74.88 0.43 0.00
Algebris Financial Equity Fund - Class B EUR € 85.33 - -1.29 - Brown Advisory American Fund USD B $ 13.84 - 0.03 0.34

ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Artemis High Income R Inc 75.43 80.42 0.18 5.90
Algebris Asset Allocation Fund - Class B EUR € 96.39 - -0.62 - Brown Advisory US Smaller Companies Fund USD B $ 15.51 - -0.06 0.00
Atlantas Sicav (LUX) Baring International Fd Mgrs (Ireland) (IRL)
ACPI Horizon UCITS Fund $ 12.26 - 0.01 0.00 Artemis Income R Inc 195.30 207.03 1.89 4.26 Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004
Regulated Brown Advisory US Small Cap Blend Fund USD B $ 10.91 - 0.02 0.00
American Dynamic $ 3107.96 - 16.51 0.00 FCA Recognised
Alken Asset Management (LUX) Artemis Income R Acc 333.05 353.06 3.21 4.14 ASEAN Frontiers A GBP Inc £ 110.71 - 1.67 0.58 Brown Advisory US Flexible Equity Fund USD B $ 9.67 - -0.06 0.00
61 Conduit Street, London, W1S 2GB American One $ 2945.57 - 20.68 0.00
Abbey Life Assurance Company Limited (UK)
www.alken-am.com Artemis Monthly Dist R Inc 60.88 64.64 0.29 4.51 Asia Growth A GBP Inc H £ 45.00 - 0.70 0.00 Brown Advisory Global Leaders Fund $ 9.27 - 0.02 -
100 Holdenhurst Road, Bournemouth BH8 8AL 0845 9600 900 Bond Global € 1394.59 - -3.33 0.00
Regulated
additional fund prices can be found @ www.abbeylife.co.uk Artemis Pan-Euro Abs Ret GBP 109.89 - 0.26 - Australia A GBP Inc £ 68.14 - 0.22 1.82
Alken European Opportunities € 187.87 - -3.91 0.00
Insurances Eurocroissance € 833.81 - 23.41 0.00
Life Funds Artemis Strategic Assets R Acc 71.14 75.36 0.09 0.00 Baring China Bond Fund $ 9.63 - 0.04 0.00
Alken European Opportunities £ 114.30 - -2.73 0.00
Prop. Acc. Ser 2 1503.80 1583.00 -0.20 - Far East $ 600.40 - -11.02 0.00
Alken Absolute Return € 135.82 - -1.46 0.00 Artemis Strategic Bond R M Acc 82.22 87.35 0.16 4.05 Baring Emerging Markets Corporate Debt Fund $ 9.13 - 0.04 0.00
Selective Acc. Ser 2 1541.80 1623.00 2.70 -
Alken Absolute Return £ 110.32 - -1.16 0.00 Artemis Strategic Bond R M Inc 52.74 56.04 0.10 4.13 Baring European Opportunities Fund Class A EUR Acc € 12.74 - 0.08 0.00
American Ser. 4 1639.40 1725.70 3.60 -
Atlantis Investment Management Ltd (IRL)
Alken Small Cap € 174.15 - -2.70 0.00 Artemis Strategic Bond R Q Acc 82.30 87.44 0.16 4.13 2nd Floor, 13 St Swithin's Lane, London EC4N 8AL Baring Global Mining Fund - Class A GBP Inc £ 3.23 - -0.01 0.65
Custodian Ser. 4 483.60 509.00 1.30 - CCLA Investment Management Ltd (UK)
www.atlantis-investmenet.com, Tel: 0207 877 3377 Senator House 85 Queen Victoria Street London EC4V 4ET
Artemis Strategic Bond R Q Inc 52.69 55.98 0.10 4.22 Regulated Dynamic Emerging Markets A GBP Acc F £ 8.38 - 0.09 0.00
Equity Ser. 4 537.70 566.00 1.00 - Authorised Inv Funds
Atlantis China Fund $ 6.44 - 0.00 0.00 The Public Sector Deposit Fund
Amundi Funds (LUX) Artemis UK Growth R Acc 431.95 457.68 3.46 0.54 Eastern Europe A GBP Inc £ 39.47 - 0.64 1.84
European Ser 4 555.80 585.00 -1.80 - The Public Sector Deposit Fund-share class 1 F 100.00 - 0.00 0.51
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 Atlantis China Healthcare Fund $ 1.73 - 0.03 0.00
www.amundi-funds.com Artemis UK Smaller Cos R Acc 1138.07 1227.87 2.29 0.47 Emerging Mkt Debt LC A GBP Hedged Inc £ 6.82 - 0.07 6.72
Fixed Int. Ser. 4 913.70 961.80 4.80 - The Public Sector Deposit Fund-share class 2 F 100.00 - 0.00 0.34
FCA Recognised Atlantis Japan Opportunities Fund $ 2.46 - 0.02 0.00
Bd. Euro Corporate AE Class - R - EUR € 18.34 - 0.04 0.00 Artemis UK Special Sits R Acc 502.50 534.51 2.09 1.61 Emerging Opportunities A GBP Inc H £ 17.83 - -0.15 0.00
Intl Ser. 4 426.00 448.40 1.30 - The Public Sector Deposit Fund-share class 3 F 100.00 - 0.00 0.39
Atlantis Asian Fund $ 6.18 - 0.02 0.00
Bd. Global AU Class - R - USD $ 25.21 - 0.11 0.00 Artemis US Abs Ret I Acc 108.00 - -0.05 0.00 Glb Emerging Markets A GBP Inc H £ 17.79 - 0.32 0.00
Japan Ser 4 366.60 385.90 3.80 - The Public Sector Deposit Fund-share class 4 F 100.00 - 0.00 0.45

Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 Artemis US Equity I Acc 112.73 - 1.26 0.28 Glb Resources A GBP Inc H £ 9.97 - 0.11 0.38
Man. Ser. 4 1623.90 1709.30 3.20 - The Public Sector Deposit Fund-share class 5 F 100.00 - 0.00 0.35

Money Ser. 4 524.40 552.10 0.00 -

Eq. Emerging World AU Class - R - USD $ 72.86

Eq. Greater China AU Class - R - USD $ 487.08

-

-
0.69 0.00

2.76 0.00
Artemis US Select I Acc

Artemis US Select I Inc

114.85

102.58
-

-
1.57 0.12

1.41 -
AXIOM
ALTERNATIVE INVESTMENTS
High Yield Bond A GBP Hedged Inc H £

Hong Kong China A GBP Inc

6.03

£ 532.52
-

-
0.01 7.21

12.20 0.58
Prop. Ser. 4 1076.80 1133.50 -0.10 - CCLA Investment Management Ltd (UK)
India Fund - Class A GBP Inc £ 14.26 - 0.43 0.00 Senator House 85 Queen Victoria Street London EC4V 4ET
Eq. Latin America AU Class - R - USD $ 278.47 - 4.17 0.00 Artemis US Smlr Cos I Acc 111.36 - -0.41 0.00
Custodian Ser 5 464.10 488.60 1.20 - Property & Other UK Unit Trusts
Artemis US Ex Alpha I Acc 120.84 - 0.82 0.14
Axiom Alternative Investments (FRA) Latin America A USD Inc H $ 23.67 - 0.65 0.24 CBF Church of England Funds
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.30 - -0.01 0.00 1 Conduit Street - 4th floor - London W1S 2XA
International Ser 5 408.90 430.40 1.30 - Investment Inc 1284.90 1299.11 12.02 3.78
www.axiom-ai.com Tel: +44 330 822 0374 MENA A GBP Inc F * £ 11.27 - 0.23 0.64
Managed Ser 5 1558.60 1640.70 3.00 - Regulated Investment Acc 2642.08 2671.31 24.71 -
Axiom Contingent Capital € 1000.60 - 0.05 -
The Antares European Fund Limited Artisan Partners Global Funds PLC (IRL)
Money Ser 5 513.50 540.50 0.00 - Global Equity Inc 146.05 147.67 2.03 4.31
Other International Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland
Axiom Contingent Capital £ 1005.48 - 0.17 -
AEF Ltd Usd (Est) $ 634.92 - 11.11 - Tel: 44 (0) 207 766 7130 Baring International Fd Mgrs (Ireland) (IRL)
Property Ser 5 1033.50 1087.90 -0.10 - Regulated Global Equity Acc 215.58 217.97 2.99 -
FCA Recognised
Axiom Equity $ 737.03 - -16.62 -
AEF Ltd Eur (Est) € 636.55 - 11.04 0.00 Artisan Partners Global Funds plc China A-Share A GBP Inc £ 5.70 - 0.14 0.00
Pension Funds UK Equity Inc 137.82 139.07 2.09 4.05
Artisan Emerging Markets I USD Acc $ 6.09 - 0.04 0.00
American 1882.10 1981.20 1.70 - Axiom Equity € 774.27 - -17.50 0.00
UK Equity Acc 205.95 207.81 3.12 -
Artisan Global Equity Fund Class I USD Acc $ 12.96 - -0.17 0.00
Equity 4676.20 4922.30 1.90 - Axiom Obligataire $ 1716.83 - -0.67 0.00
Arisaig Partners Barings (Luxembourg) (LUX)
Fixed Interest Inc 161.95 162.76 -0.03 3.96
Other International Funds Artisan Global Opportunities I USD Acc $ 11.20 - 0.03 0.00 FCA Recognised
European 1111.30 1169.80 -8.00 - Axiom Obligataire € 1712.57 - -0.69 0.00
Arisaig Africa Consumer Fund Limited $ 12.86 - 0.08 0.00 Russia A GBP Inc F £ 23.74 - 0.45 0.00
Fixed Interest Acc 497.91 500.41 -0.10 -
Artisan Global Value Fund Class I USD Acc $ 14.43 - -0.02 0.00
Fixed Int. 1675.00 1763.10 9.60 - Axiom Obligataire £ 1725.70 - -0.55 0.00
Arisaig Asia Consumer Fund Limited $ 57.26 - -0.11 0.00 Property Fund Inc 134.26 138.76 1.25 6.51
Artisan US Value Equity Fund Class I USD Acc $ 9.44 - 0.09 0.00
International 898.20 945.40 1.00 - BlackRock (JER)
Arisaig Global Emerging Markets Consumer UCITS € 10.91 - -0.01 0.00 Property Fund Acc 234.22 242.07 2.73 -
Regulated
Japan 383.80 404.00 2.90 - BLME Asset Management (LUX)
BlackRock UK Property £ 41.67 - 0.46 3.26
Arisaig Global Emerging Markets Consumer UCITS STG £ 10.59 - -0.05 0.00 BLME Sharia'a Umbrella Fund SICAV SIF
Ashmore Sicav (LUX)
Managed 4180.30 4400.30 1.50 - Regulated
Arisaig Latin America Consumer Fund $ 18.60 - 0.10 0.00 2 rue Albert Borschette L-1246 Luxembourg Blackrock UK Long Lease £ 1079.95 - 8.43 0.00
Income Fund - Share Class A Acc $ 1135.43 - 0.33 0.00 CCLA Fund Managers Ltd (UK)
FCA Recognised
Property 2772.40 2918.30 -0.30 - Senator House 85 Queen Victoria Street London EC4V 4ET
Ashmore SICAV Emerging Market Debt Fund $ 87.64 - 0.70 9.02 BLK Intl Gold & General $ 3.83 4.04 -0.09 0.00
Income Fund - Share Class G Acc £ 1077.22 - 0.29 0.00 Property & Other UK Unit Trusts
Security 1476.80 1554.60 -0.10 - COIF Charity Funds (UK)
Ashmore SICAV Emerging Market Frontier Equity Fund $ 130.78 - 2.13 0.98
Gl Sukuk Fund - Share Class A Acc $ 1206.47 - 2.29 0.00 Investment Inc 1179.45 1192.49 32.49 3.62
Selective 1969.90 2073.60 4.50 - Ashmore SICAV Emerging Market Total Return Fund $ 74.80 - 0.69 6.41 BONHOTE
Gl Sukuk Fund - Share class B Acc £ 1077.17 1077.17 2.05 0.00 Investment Acc 11429.43 11555.85 314.81 -
Other International Funds
Formerly Hill Samuel Life Assurance Ltd Ashmore SICAV Global Small Cap Equity Fund $ 112.37 - 0.87 0.00 Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6607.00 - -42.00 2.29
100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603 Ethical Invest Inc 181.66 183.67 5.23 3.73
FINANCIAL TIMES Monday 1 February 2016 FTfm | 13

FTfm

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

Ethical Invest Acc 235.59 238.20 6.77 - Amity Global Equity Inc for Charities A Inc 97.36 - 0.55 4.01

Global Equity Inc 139.16 140.70 5.14 4.41 Candriam Investors Group Cavendish Asset Management Limited (1200)F (UK) Consistent Unit Tst Mgt Co Ltd (1200)F (UK) Amity International Cls A Inc 195.20 - 1.60 1.38
Other International Funds Chelsea House, Westgate, London W5 1DR PO BOX 10117, Chelmsford, Essex, CM1 9JB
Global Equity Acc 207.92 210.22 7.69 - Candriam Eqts L Emerging Mkts Cap € 576.50 - 0.28 0.00 IFA Enquiries 020 8810 8041 Admin/Dealing 0870 870 7502 Dealing & Client Services 0845 0264281 Amity International Cls B Inc 196.50 - 1.60 2.24
Authorised Inv Funds Authorised Inv Funds
Fixed Interest Inc 133.05 133.72 -0.47 4.14 Candriam Eqts L Euro 50 Cap € 490.41 - -10.53 0.00 Cavendish Opportunities Fund B Class 1007.00 - 8.10 1.66 Consistent UT Inc 51.79 52.40 0.70 4.85 Amity Sterling Bond Fund A Inc 103.50 - 0.20 5.20

Fixed Interest Acc 770.91 774.78 -2.73 - Candriam Eqts L Europe Cap € 881.76 - -13.09 0.00 Cavendish Opportunities Fund A Class 1001.00 - 8.20 0.82 Consistent UT Acc 120.70 122.14 1.63 4.70 Amity Sterling Bond Fund B Inc 112.00 - 0.20 5.19
Dodge & Cox Worldwide Funds (IRL)
6 Duke Street,St.James,London SW1Y 6BN
Property Inc 115.33 119.19 -0.03 5.79 Candriam Eqts L Japan Cap ¥ 19699.00 - 559.00 0.00 Cavendish Opportunities Fund C Acc 1048.00xd - 8.00 1.48 Practical Investment Inc 193.29 198.48 1.39 3.99 www.dodgeandcox.worldwide.com 020 3713 7664
FCA Recognised
Property Acc 248.62 256.95 2.77 - Candriam Bonds Credit Opportunities € 189.35 - 0.20 0.00 Cavendish Worldwide Fund B Class 284.60 - 1.30 0.69 Practical Investment Acc 943.88 969.23 6.79 3.88
Dodge & Cox Worldwide Funds plc - Global Bond Fund
Edinburgh Partners Limited (IRL)
27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143
EUR Accumulating Class € 11.40 - -0.02 0.00
Local Authorities Property Fd (LAMIT) (UK) Candriam Bds Euro Conv. Classic Cap € 3383.87 - 4.88 0.00 Cavendish Worldwide Fund A Class 283.80 - 1.30 0.00 Dealing - Fax only - +353 1 434 5230
Property 274.76 295.14 2.73 4.81 FCA Recognised
EUR Accumulating Class (H) € 8.92 - 0.03 0.00
Candriam Bds Euro Corp ExFin Cap € 161.93 - 0.44 0.00 Cavendish Worldwide Fund C Acc 292.00xd - 1.30 0.62 Edinburgh Partners Opportunities Fund PLC
EUR Distributing Class € 10.80 - -0.02 3.62 European Opportunities I EUR € 2.25 - -0.04 2.30
Candriam Bds Euro Gov.Cl.Cap € 2289.85 - 1.34 0.00 Cavendish AIM Fund B Class 154.10 - 1.20 0.71
CG Asset Management Limited (IRL)
EUR Distributing Class (H) € 8.44 - 0.03 3.71
European Opportunities I GBP £ 1.70 - -0.04 2.46
Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland Candriam Bds Euro High Yield Cap € 985.95 - 1.26 0.00 Cavendish AIM Fund A Class 150.00 - 1.20 0.00
00 353 1 434 5098 European Opportunities I USD $ 2.47 - -0.03 2.08
GBP Distributing Class £ 10.02 - -0.05 3.57
FCA Recognised Candriam Bds Euro High Yield R Cap € 109.61 - 0.15 0.00 Cavendish Asia Pacific Fund B Class 145.90 - 2.90 1.74
Coronation Fund Managers
Capital Gearing Portfolio Fund Plc £ 27179.73 27179.73 -104.64 0.61 European Opportunities A EUR € 2.19 - -0.04 1.60
+44 (0)20 7389 8840 www.coronation.com GBP Distributing Class (H) £ 8.52 - 0.03 3.71
Candriam Bds Euro Long Term Cap € 8003.48 - 17.71 0.00 Cavendish Asia Pacific Fund A Class 145.90 - 2.90 0.77
Enquiries: +27 (21) 680 2837/2457 coronationfunds@coronation.co.za
CG Portfolio Fund Plc Global Opportunities I USD $ 1.48 - -0.01 2.12
Other International Funds USD Accumulating Class $ 9.00 - 0.03 0.00
Real Return Cls A £ 173.92 173.92 -0.61 1.74 Candriam Bds Euro Sh.Term Cap € 2076.98 - -0.05 0.00 Cavendish Asia Pacific Fund C Acc 152.50 - 3.10 1.71
Global Equity Fund of Funds - Class A $ 12.44 - 0.13 0.00
Global Opportunities I GBP £ 1.03 - -0.02 1.93
Dodge & Cox Worldwide Funds plc-Global Stock Fund
Dollar Fund Cls D £ 136.06 136.06 -0.34 1.62 Candriam Bds International Cap € 990.67 - 0.51 0.00 Cavendish European Fund B Class 136.60 - 0.20 1.10
Global Emerging Markets - Class A $ 10.34 - 0.03 0.00 USD Accumulating Share Class $ 13.89 - 0.05 0.00
Global Opportunities I EUR € 1.52 - -0.01 1.98
Capital Value Fund Cls V £ 131.69 131.69 -0.46 0.27 Candriam Bds USD Cap $ 934.74 - 1.26 0.00 Cavendish European Fund A Class 135.50 - 0.30 0.29
All Africa $ 11.83 - -1.60 0.00 GBP Accumulating Share Class £ 15.91 - -0.08 0.00
Global Opportunities A GBP £ 0.96 - -0.02 1.46
Candriam Total Return Bond Cap € 129.49 - 0.13 0.00 Cavendish Japan Fund B Class 154.90 - 3.20 0.72
Africa Frontiers $ 15.61 - 0.11 0.00 GBP Distributing Share class £ 11.58 - -0.05 0.98
Pan European Opportunities I EUR € 1.38 - -0.02 -
Cavendish Japan Fund A Class 153.90 - 3.10 0.00
EUR Accumulating Share Class € 19.06 - -0.03 0.00

Cavendish North American Fund B Class 183.60 - 1.00 0.52

Dodge & Cox Worldwide Funds plc-International Stock Fund
USD Accumulating Share Class $ 11.73 - -0.01 0.00
Cavendish North American Fund A Class 178.30 - 1.00 0.00

EUR Accumulating Share Class € 12.62 - -0.07 0.00

Cavendish Technology Fund B Class 273.10 - 2.10 0.02
Canada Life Investments (UK)
1-6 Lombard Street, EC3V 9JU. Dealing 0345 606 6180 Asset Management Dodge & Cox Worldwide Funds plc-U.S. Stock Fund
Authorised Inv Funds
Asia Pacific B Acc 741.18 - 8.61 1.13
Capita Asset Services
40 Dukes Place, London EC3A 7NH
(UK)
Cavendish Technology Fund A Class

Cavendish UK Balanced Income Fund B Class

259.20

131.70
-

-
2.00 0.00

1.00 4.93
Crèdit Andorrà Asset Management
www.creditandorra.com
(LUX) Asset Management
USD Accumulating Share Class $ 16.13 - 0.06 0.00
EFG Hermes
Order Desk and Enquiries: 0345 922 0044 GBP Accumulating Share Class £ 17.48 - -0.08 0.00 DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE
FCA Recognised
Balanced B Acc 143.93 - 1.05 1.46 Authorised Inv Funds Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com
Cavendish UK Balanced Income A Class 125.20 - 1.00 5.18 Crediinvest SICAV Money Market Eur I € 11.22 - 0.00 0.00
CF Heartwood Cautious B Acc 125.35 - 0.16 0.15 GBP Distributing Share Class £ 11.12 - -0.04 0.61 Other International Funds
Corporate Bond B Inc 204.77 - 0.98 4.07 The EFG-Hermes Egypt Fund $ 29.93 - - 0.00
Cavendish UK Select Fund B Class 134.80 - 1.30 2.31 Crediinvest SICAV Money Market Usd A $ 10.03 - 0.00 0.00
CF Heartwood Cautious Income B Inc 107.34 - 0.21 2.44 EUR Accumulating Share Class € 19.12 - -0.02 0.00
European B Acc 245.72 - 1.23 1.57 EFG-Hermes Frontier Equity UCITS Fund Class I $ 1000.00 - - -
Cavendish UK Select Fund A Class 134.60 - 1.40 1.39 Crediinvest SICAV Fixed Income Eur € 10.44 - 0.03 0.00
CF Heartwood Growth B Acc 136.19 - -0.09 0.70
Global Bond B Inc 94.87 - 0.30 2.92 EFG-Hermes MENA Equity UCITS Fund Class A $ 1000.00 - - -
Crediinvest SICAV Fixed Income Usd $ 10.32 - 0.01 0.00
CF Heartwood Balanced Income B Inc 107.22 - 0.13 3.02
Global Equity B Acc 588.89 - 5.08 1.10 Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00
Cedar Rock Capital Limited (IRL) Crediinvest SICAV Spanish Value € 225.85 - 2.23 0.00
CF Heartwood Balanced B Acc 120.03 - 0.05 0.32
Regulated
Global Equity Income B Inc 120.48 - 0.88 3.93 Saudi Arabia Equity Fund SR 10.42 - -0.01 0.00
Cedar Rock Capital Fd Plc $ 345.33 - -24.08 0.00 Crediinvest SICAV International Value € 192.40 - 1.21 0.00
CF Heartwood Defensive Multi Asset Fund B Accumulation 108.45 - 0.11 0.00
Global High Yield Bond B Inc 89.20 - 1.02 5.14
Cedar Rock Capital Fd Plc £ 376.67 - -16.82 0.00 Crediinvest SICAV Big Cap Value € 14.19 - -0.01 0.00
CF Richmond Core 159.41 - -0.33 0.00
Dragon Capital Group
Global Infrastructure B Acc 110.51 - 1.39 0.93
Crediinvest SICAV US American Value $ 16.63 - -0.05 0.00 1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam Electric & General (1000)F (UK)
Cedar Rock Capital Fd Plc € 331.66 - -22.35 0.00
CF Seneca Diversified Growth A ACC 208.33 - 0.27 1.49 Stuart House St.John's Street Peterborough PE1 5DD
Fund information, dealing and administration: funds@dragoncapital.com
Global Resource B Acc 64.87 - 0.93 0.97 Orders & Enquiries: 0845 850 0255
Crediinvest SICAV Sustainability € 14.17 - -0.06 0.00 Other International Funds
CF Seneca Diversified Growth B ACC 123.40 - 0.16 2.40 Authorised Inv Funds
Vietnam Enterprise Inv. (VEIL) NAV $ 3.29 - -0.15 0.00
Japan B Acc 50.24 - 0.54 0.92 Authorised Corporate Director - Carvetian Capital Management
CF Seneca Diversified Growth N ACC 122.13 - 0.16 2.08 Charles Schwab Worldwide Funds Plc (IRL)
Electric&General Net Income A 146.80 - 0.60 1.94
Regulated Vietnam Growth Fund (VGF) NAV $ 23.26 - 0.42 0.00
Portfolio III B Acc 107.24 - 0.56 2.32
Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 Daiwa SB Investments (UK) Ltd (LUX)
CF Seneca Diversified Income A INC 84.61 - 0.26 6.22
5 King William Street, London EC4N 7DA Vietnam Property Fund (VPF) NAV $ 0.92 - 0.11 0.00
Portfolio IV B Acc 107.98 - 0.64 2.36
www.daiwasbi.co.uk 0207 597 7000
CF Seneca Diversified Income B INC 100.47 - 0.31 6.13 Ennismore Smaller Cos Plc (IRL)
Regulated
Portfolio V B Acc 106.60 - 0.71 1.56 5 Kensington Church St, London W8 4LD 020 7368 4220
Chartered Asset Management Pte Ltd DSBI Japan Equity Fundamental Active I JPY ¥ 11229.64 11229.64 -69.88 0.00
CF Seneca Diversified Income N INC 99.47 - 0.32 6.13 FCA Recognised
Portfolio VI B Acc 104.20 - 0.91 1.60 Other International Funds DSM Capital Partners Funds (LUX)
DSBI Japan Equity Fundamental Active I GBP £ 110.95 110.95 -0.62 0.00 www.dsmsicav.com Ennismore European Smlr Cos NAV £ 103.64 - -0.15 0.00
Investment Adviser - DSM Capital Partners CAM-GTF Limited $ 265175.46 265175.46 622.65 0.00
Regulated
Portfolio VII B Acc 99.88 - 1.00 1.58 The Westchester $ 25.21 - -0.11 0.00 Ennismore European Smlr Cos NAV € 136.32 - 0.21 0.00
CAM GTi Limited $ 605.58 - -7.40 0.00 DSBI Japan Equity Fundamental Active A EUR € 106.48 111.80 -0.63 0.00 Global Growth I2 Acc € 124.90 - -1.59 0.00
North American B Acc 840.03 - 6.65 0.72 The Westchester Class 1 GBP Acc £ 19.10 - -0.08 0.00
Raffles-Asia Investment Company $ 1.56 1.56 0.01 5.51 Global Growth I1 Eur € 93.39 - -1.19 -
Strategic Return B Acc 97.52 - 1.75 0.00 The Westchester Class 2 GBP Acc £ 19.14 - -0.09 0.00 Ennismore European Smlr Cos Hedge Fd
DAVIS Funds SICAV (LUX)
Regulated Other International Funds
Total Return B Acc 94.83 - 0.90 3.07 Investment Adviser - Morant Wright Management Limited NAV € 493.94 - -2.06 0.00
CF Morant Wright Japan A 274.71 - 2.30 0.00
Davis Value A $ 36.11 - 0.38 0.00 Eclectica Asset Management (UK)
40 Dukes Place, London EC3A 7NH
UK Equity B Acc 102.63 - 0.60 1.66
Davis Global A $ 25.52 - 0.29 0.00 Order Desk and Enquiries: 0345 608 0941
CF Morant Wright Japan A Inc 270.67 - 2.26 0.00
Authorised Corporate Director - Capita Financial Managers
UK Equity & Bond Income B Inc 229.35 - 2.12 5.01 Equinox Fund Mgmt (Guernsey) Limited (GSY)
Authorised Inv Funds
CF Morant Wright Japan B 292.55 - 2.45 0.51 Regulated
UK Equity Income B Inc 410.43 - 4.33 4.94 CF Eclectica Agriculture A EUR Acc € 1.33 - 0.02 0.00
Equinox Russian Opportunities Fund Limited $ 119.68 - 0.92 0.00
CF Morant Wright Japan B Inc 275.87 - 2.31 0.53 Cheyne Capital Management (UK) LLP (IRL)
CF Eclectica Agriculture A GBP Acc 101.31 - 1.20 0.00
UK Government Bond B Inc 48.28 - 0.31 1.98 Regulated
CF Morant Wright Nippon Yield ACC A 277.89 - 0.41 2.11 Cheyne Convertibles Absolute Return Fund € 1312.13 - -1.53 0.00
CF Eclectica Agriculture A USD Acc $ 1.45 - 0.02 0.00
Euronova Asset Management UK LLP (CYM)
CF Morant Wright Nippon Yield ACC B 288.40 - 0.44 2.10 Cheyne Global Credit Fund € 114.52 - 0.06 0.00 Regulated
CF Eclectica Agriculture C EUR Acc € 1.38 - 0.02 0.43
Smaller Cos Cls One Shares (Est) € 34.02 - 0.33 0.00
CF Morant Wright Nippon Yield Fund A Inc 241.56 - 0.36 2.14 Cheyne European Mid Cap Fund € 1103.40 - 4.80 0.00 Deutsche Asset Management UK Ltd. (LUX)
Tel: + 44 207 545 9070 www.dws.co.uk CF Eclectica Agriculture C GBP Acc 105.24 - 1.25 0.41
Smaller Cos Cls Two Shares (Est) € 23.85 - 0.20 0.00
CF Morant Wright Nippon Yield Fund B Inc 250.77 - 0.38 2.13 FCA Recognised
Deutsche Invest I Africa GBP RD1 Inc £ 112.40 112.40 1.45 1.11 CF Eclectica Agriculture C USD Acc $ 1.49 - 0.02 0.43
Smaller Cos Cls Three Shares (Est) € 11.86 - 0.13 0.00
Cheyne Capital Management (UK) LLP
Other International Funds Deutsche Invest I Chinese Eq.GBP RD Inc £ 93.69 93.69 -0.32 0.75
Candriam Investors Group (LUX) Smaller Cos Cls Four Shares (Est) € 15.43 - 0.16 0.00
FCA Recognised Cheyne European Event Driven Fund € 134.54 - -11.29 0.00
Deutsche Invest I Conv.GBP RDH Inc £ 161.24 161.24 -0.40 0.63
Candriam Eqts L Australia Cap A$ 941.32 - 7.56 0.00
Cheyne Real Estate Credit Holdings Fund £ 162.87 - 1.01 0.00
Deutsche Invest I Global Agrib.GBP LD DS Inc £ 80.15 84.37 0.53 0.31
Candriam Eqts L Sust World Cap € 259.36 - -1.48 0.00
Cheyne Real Estate Credit Holdings Fund III £ 112.40 - 0.42 0.00
Deutsche Invest I Top Asia GBP RD Inc £ 143.79 143.79 -1.05 1.15
Candriam Bds Euro Cap € 1135.09 - 1.18 0.00
Castle Fund Administrators Limited (GIB) Cheyne Real Estate Debt Fund Class A1 £ 132.13 - 0.48 0.00
Candriam Bds Euro Infl Linked Cap € 141.19 - 0.30 0.00 932 Europort, Gibraltar GX11 1AA EdenTree Investment Management Ltd (UK)
Cheyne Total Return Credit Fund - December 2017 Class $ 152.88 - -20.24 0.00 PO Box 3733, Swindon, SN4 4BG, 0800 358 3010
Tel: +350 200 40466
Candriam Qt-Eqts Europe Cap € 2124.73 - -29.12 0.00 www.castlefundadministrators.com
Discretionary Unit Fund Mngrs (1000)F (UK) Authorised Inv Funds
Cheyne Total Return Credit Fund 2020 $ 100.78 - -2.61 - 1 Poultry, London EC2R 8JR 020 7 415 4130 Amity UK Cls A Inc 203.30 - 1.80 1.45 Eurobank Fund Management Company (Luxembourg) S.A.
Other International Funds Regulated
Authorised Inv Funds
Candriam Qt-Eqts USA Cap $ 2135.98 - 14.57 0.00 Inspirato Fund No. 2 PCC Limited
Disc Inc 1571.34 1680.95 3.84 0.00 Amity UK Cls B Inc 202.50 - 1.80 2.24 (LF) Absolute Return € 1.31 - 0.00 0.00
Inspirato Fund No. 2 PCC Limited - Cell A £ 40274.60 - -201.04 0.00

Do Accum 5920.98 6333.97 14.47 0.00 Higher Income Cls A Inc 115.70 - 0.70 5.00 (LF) Eq Emerging Europe € 0.65 - 0.01 0.00
Inspirato Fund No. 2 PCC Limited - Cell B £ 99823.29 - -404.81 0.00 Cohen & Steers SICAV (LUX)
Candriam Investors Group (BE) Regulated
Higher Income Cls B Inc 119.30 - 0.80 4.91 (LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00
FCA Recognised Inspirato Fund No. 2 PCC Limited - Cell C $ 102040.93 - -539.30 0.00 European Real Estate Securities € 21.8562 - -0.0702 1.58
Candriam Sust Euro Bonds Cap € 359.92 - 0.43 0.00 (LF) Eq Mena Fund € 11.82 - 0.19 0.00
Europ.RealEstate Sec. IX € 29.3125 - -0.0941 0.00 UK Equity Growth Cls A Inc 226.30 - 1.50 0.59
Inspirato Fund No. 2 PCC Limited - Cell D £ 106332.61 - -988.75 0.00
Candriam Sust North America Cap $ 36.14 - 0.20 0.00 (LF) Greek Government Bond € 16.67 - -0.11 -
Gbl Listed Infrastructure I $ 9.5698 - 0.1254 - UK Equity Growth Cls B Inc 230.60 - 1.40 1.18
The Global Financial Infrastructure Fund £ 99607.39 - -392.61 -
Candriam Sust World Cap € 24.03 - -0.14 0.00 (LF) Greek Corporate Bond € 11.57 - -0.01 -
Gbl Listed Infrastructure IX $ 9.6113 - 0.1259 - Amity Balanced For Charities A Inc 104.60 - 0.60 6.11
The Global Technology Infrastructure Fund £ 99489.30 - -510.70 -

Amity European Fund Cls A Inc 191.90 - 0.70 1.23 (LF) FOF Dynamic Fixed Inc € 11.62 - 0.00 0.00
The London, Key Cities & Counties Social Infrastructure Fund £ 99369.30 - -630.70 - Gbl RealEstate Sec. I $ 10.1190 - -0.0547 1.40

Amity European Fund Cls B Inc 193.50 - 0.70 2.08 (LF) FOF Real Estate € 15.85 - -0.09 0.00
Gbl RealEstate Sec. IX $ 12.0479 - -0.0652 0.00
14 | FTfm FINANCIAL TIMES Monday 1 February 2016

FTfm

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

Multi Asset Defensive £ 1.21 - 0.00 0.26 Pan European £ 2.54 - 0.02 2.04 Global Opportunities A Shares 302.63 - 3.07 0.18 Corp Pens Protector 372.46 372.46 1.97 - Global Care Growth A Inc 187.80 - -0.90 0.00

Multi Asset Defensive - Gross £ 1.21 - 0.00 0.26 Reduced Duration UK Corporate Bond £ 10.22 - 0.00 3.65 Global Property Securities A Accumulation 165.59 - 1.45 2.19 Corp Pens UK Index Tracker £ 1.81 1.81 0.01 - Global Equity Income A Inc 48.35 - 0.41 3.87

Multi Asset Growth £ 1.32 - 0.01 0.25 Reduced Duration UK Corporate Bond Gross £ 10.42 - 0.01 3.65 Global Property Securities A Income 128.91 - 1.13 2.23 Guardian Linked Life Assurance Ltd Global Growth Fund 1954.91 2043.32 8.96 0.00
Managed Acc £ 17.18 18.09 0.01 -
MultiManager Balanced £ 1.09 - 0.00 0.56 Reduced Duration UK Corporate Bond Inc £ 9.54 - 0.00 3.67 Global Resources A Shares 153.46 - 1.85 1.39 Global Technology A Acc 923.80 - 10.90 0.00
Equity Acc £ 30.74 32.36 0.20 -
Multi Asset Open Growth A-Acc £ 0.45 - 0.00 0.60 Reduced Duration UK Corp Bond Gross Inc £ 9.55 - 0.00 3.68 Greater China Growth A Shares 481.94 - 9.56 1.01 Multi-Manager Absolute Return A Acc 133.70 - 0.40 0.39
FIL Investment Services (UK) Limited (1200)F (UK)
Fixed Interest Acc £ 17.22 18.13 0.03 -
130, Tonbridge Rd, Tonbridge TN11 9DZ
Multi Asset Open Strategic A-Acc £ 1.20 - 0.01 1.04 Select Emerging Markets Equities £ 1.10 - 0.02 1.66 Indian Subcontinent A Acc 329.66 - 5.76 0.00 Multi-Manager Active A Acc 169.10 - 1.40 0.00
Callfree: Private Clients 0800 414161
International Acc £ 12.70 13.37 -0.06 -
Broker Dealings: 0800 414 181
Multi Asset Open Strategic A-Inc £ 0.29 - 0.00 2.55 Select European Eqts £ 1.73 - 0.01 1.88 Worldwide Equity Fund A Accumulation £ 1.29 - 0.01 0.00 Multi-Manager Distribution A Inc 123.90 - 0.30 3.39
Authorised Inv Funds
International S-NA Acc £ 6.53 6.87 -0.03 -
Unit Trust
Multi Asset Strategic £ 1.50 - 0.01 0.30 Select Global Equities £ 2.90 - 0.03 1.10 Worldwide Equity Fund A Income £ 1.30 - 0.00 0.00 Multi-Manager Diversified A Acc 76.26 - 0.15 2.93
Cash Accum Units 186.45 186.45 0.00 0.00
International S-PA Acc £ 3.94 4.15 -0.02 -
Open World A-Acc £ 1.14 - -0.01 0.00 South East Asia £ 3.45 - 0.07 1.99 Multi-Manager Global Select Acc 171.00 - 0.60 0.00
Cash Fund £ 1.00 1.00 0.00 0.15
International S-EU Acc £ 3.18 3.35 -0.01 -

Gross Accum Cash £ 1.28 1.28 0.00 0.00

Multi Asset Income A Gross Acc £ 1.54 - 0.01 3.49 Sterling Core Plus Bond Gr Accum £ 2.11 - 0.01 3.46 Foord Asset Management Multi-Manager Income & Growth A Acc 147.90 - 0.20 2.23
Other International Funds Managed S-PR Acc £ 6.53 6.87 0.01 -
Multi Asset Income A Gross Inc £ 1.06 - 0.00 5.01 Sterling Core Plus Bond Inc £ 1.36 - 0.01 3.56 Foord International Trust $ 32.55 - -0.11 0.00 Multi-Manager Income & Growth A Inc 135.90 - 0.20 2.26
MoneyBuilder Cash ISA £ 1.00 1.00 0.00 0.15
Fixed Interest S-IL Acc £ 6.51 6.85 0.02 -
Multi Asset Income A Net Acc £ 1.45 - 0.00 3.50 UK £ 3.46 - 0.04 2.23 Foord Global Equity Fund_Class B $ 11.27 - -0.05 0.00 Multi-Manager Managed A Acc 220.20 - 1.40 0.42
MoneyBuilder Global £ 2.51 2.51 -0.01 0.19
Deposit Accum £ 4.44 4.67 0.00 -
Multi Asset Income A Net Inc £ 1.06 - 0.00 5.01 UK Aggreg Bond Gr Accum £ 1.83 - 0.01 4.63 Multi-Manager Managed A Inc 216.30 - 1.40 0.41
OEIC Funds
Guardian Pensions Management Ltd
American £ 25.80 - 0.22 0.00
South East Asia £ 7.81 - 0.14 0.12 UK Aggregate Bond Inc £ 1.21 - 0.01 3.18 Franklin Templeton International Services Sarl (IRL) Pens. Managed Acc. £ 22.39 23.57 0.04 - Sterling Bond Acc 194.77 203.51 0.94 2.88
JPMorgan House - International Financial Services Centre,Dublin 1, Ireland
American Special Sits £ 11.19 - 0.07 0.00
Special Situations £ 28.83 - 0.15 0.77 UK Corporate Bond £ 1.20 - 0.01 3.99 Other International Funds Pens. Equity Acc. £ 32.37 34.07 0.23 - Sterling Bond Inc 60.03 62.71 0.29 2.92

Asia Pacific Ops W-Acc £ 1.08 - 0.02 0.41 Franklin Emerging Market Debt Opportunities Fund Plc
Sterling Core Plus Red Dur £ 10.00 - 0.04 - UK Corporate Bond - Gross £ 2.25 - 0.01 3.85 Franklin Emg Mkts Debt Opp CHFSFr 16.83 - -0.61 8.30 Strategic Bond A Inc 123.30 - 0.10 5.25

Fidelity Asian Dividend Fund A-Accumulation £ 1.07 - 0.02 1.39

Strategic Bond £ 0.31 - 0.00 2.83 UK Gilt Bond £ 1.30 - 0.01 1.96 Franklin Emg Mkts Debt Opp EUR € 11.85 - -0.42 7.39 HPB Assurance Ltd UK & Irish Smaller Companies A Acc 511.20 - 0.70 0.00
Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490
Fidelity Asian Dividend Fund A-Income £ 1.00 - 0.01 3.29
Strategic Bond Gross £ 0.31 - 0.00 2.83 UK Gilt Gross £ 2.08 - 0.02 1.93 Franklin Emg Mkts Debt Opp GBP £ 9.95 - -0.23 7.13 International Insurances UK Absolute Return A Acc 151.80 - 0.30 0.00
Holiday Property Bond Ser 1 £ 0.50 - 0.01 0.00
China Consumer £ 1.36 - 0.02 0.08
Target 2020 £ 0.55 - 0.00 0.52 UK Long Corp Bond £ 1.34 - 0.01 4.40 Franklin Emg Mkts Debt Opp SGD S$ 21.85 - -0.58 6.33 UK Alpha A Acc 109.50 - 1.00 1.85
Holiday Property Bond Ser 2 £ 0.60 - 0.01 0.00
Emerging Asia £ 1.13 - 0.02 0.14
Target 2025 £ 1.27 - 0.00 0.32 UK Long Corp Bond - Gross £ 2.48 - 0.02 4.24 Franklin Emg Mkts Debt Opp USD $ 16.71 - -0.47 7.19 UK Equity Income & Growth A Inc 560.30 - 2.90 3.96

Emerg Eur, Mid East & Africa H £ 1.23 - 0.04 1.06

Target 2030 £ 1.36 - 0.00 0.40 UK Long Corporate Bond Fund - Gross Income £ 10.76 - 0.06 4.38 UK Index A Acc 469.30 - 5.10 2.95

Enhanced Income - Acc £ 1.88 - 0.02 5.29 Hargreaves Lansdown Fd Mgrs (1100)F (UK)
UK Select £ 2.33 - 0.02 0.86 Retail Share Classes Frontier Capital (Bermuda) Limited PO Box 55736, 50 Bank Street, Canary Wharf London E14 1BT UK Property A Acc 193.08 203.24 0.05 4.04
Emerging Markets - retail £ 1.20 - 0.02 0.07 Other International Enquiries 0117 90090000
Enhanced Income - Inc £ 1.20 - 0.02 7.27
UK Growth £ 3.43 - 0.04 0.00 Commercial Property-GBP Class £ 71.42 - -0.53 - www.hl.co.uk UK Property A Inc 97.68 102.81 0.03 4.16
{*}CAR - Net income reinvested Authorised Inv Funds
European - Inc £ 1.40 - 0.01 0.76
UK Smaller Companies £ 2.07 - 0.01 0.18 Global Real Estate-GBP C Class £ 45.26 - -0.50 - Hargreaves Lansdown Funds UK Tracker A Acc 210.00 - 2.40 3.05

European £ 15.95 - 0.09 1.15 Unit Trust

WealthBuilder A Acc £ 0.98 - 0.00 0.47 FIL Fund Management (LUX) HL Multi-Manager Special Situations Trust A Acc 258.73 272.34 -0.41 0.52 US Growth A Acc 743.60 - 6.00 0.00
2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg
European Opportunities £ 3.69 - 0.01 0.23
Fidelity PathFinder Phone: 800 22 089, 800 22 088 HL Multi-Manager Special Situations Trust M Acc 258.74 272.35 -0.41 0.42
Fidelity PathFinder Foundation 1 Gross Acc (clean) £ 1.09 - 0.00 - Regulated
Extra Income £ 0.26 - 0.00 3.35
China Consumer A-GBP £ 13.23 - -0.12 0.00 HL Multi-Manager Income & Growth Trust A Acc 157.56 165.77 0.52 3.83
Fidelity PathFinder Foundation 1 Acc (clean) £ 1.09 - 0.01 -
Extra Income - Gross £ 0.26 - 0.00 3.33
China Focus A-GBP £ 3.78 - -0.03 0.69 HL Multi-Manager Income & Growth Trust M Acc 157.56 165.76 0.52 1.79
Fidelity PathFinder Foundation 2 Acc (clean) £ 1.07 - 0.01 -
Global Dividend - Acc £ 1.63 - 0.02 3.03
Global Financial Services A-GBP £ 0.41 - -0.01 0.11 HL Multi-Manager Income & Growth Trust A Inc 94.18 99.09 0.31 3.91
Fidelity PathFinder Foundation 3 Acc (clean) £ 1.05 - 0.01 - Fundsmith LLP (1200)F (UK)
Global Dividend - Inc £ 1.44 - 0.01 3.26 PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815
Global Health Care A-GBP £ 0.54 - -0.02 0.00 HL Multi-Manager Income & Growth Trust M Inc 94.16 99.07 0.31 1.81 Hermes Investment Funds Plc (IRL)
www.fundsmith.co.uk, enquiries@fundsmith.co.uk
Fidelity PathFinder Foundation 4 Acc (clean) £ 1.06 - 0.01 -
Global Focus £ 12.80 - 0.18 0.00 Authorised Inv Funds Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
Global Industrials A-GBP £ 0.59 - -0.01 0.00 HL Multi-Manager Balanced Managed Trust A Acc 177.77 186.98 -0.10 1.10 FCA Recognised
Fidelity PathFinder Foundation 5 Acc (clean) £ 1.14 - 0.01 - Fundsmith Equity T Acc 229.21 - 1.39 1.12
Global High Yield Fund - A Gross Acc £ 11.50 - 0.02 4.97 Hermes Abs Return Credit Fund Class F Acc £ £ 1.05 1.05 -0.01 -
Global Inflation-Linked Bd A-GBP-Hdg £ 1.15 - 0.01 0.56 HL Multi-Manager Balanced Managed Trust M Acc 177.76 186.97 -0.10 0.71
Fidelity PathFinder Focussed 1 Gross Acc (clean) £ 1.10 - 0.01 - Fundsmith Equity T Inc 215.78 - 1.30 1.13
Global High Yield Fund - A Gross Inc £ 9.48 - 0.02 5.68 Hermes Abs Return Credit Fund Class R Acc € € 1.98 1.98 -0.01 -
Global Real Asset Securities £ 1.27 - -0.01 0.00 HL Multi-Manager Equity & Bond Trust A Inc 105.49 110.88 0.12 2.25
Fidelity PathFinder Focussed 1 Acc (clean) £ 1.09 - 0.00 -
Global High Yield Fund - A Net Acc £ 11.06 - 0.02 5.04 Hermes Active UK Inflation Fund Class F Acc £ 1.33 1.33 0.02 0.00
Global Technology A-GBP £ 0.24 - -0.01 0.00 HL Multi-Manager Equity & Bond Trust M Inc 105.48 110.86 0.12 1.04
Fidelity PathFinder Focused 2 Acc (Clean) £ 1.10 - 0.01 - GYS Investment Management Ltd (GSY)
Global High Yield Fund - A Net Inc £ 9.47 - 0.02 5.68 Regulated Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.51 1.51 0.02 0.00
Global Telecomms A-GBP £ 0.28 - -0.01 1.15 HL Multi-Manager Equity & Bond Trust A Acc 143.35 150.67 0.17 2.22
Fidelity PathFinder Focussed 3 Acc (clean) £ 1.08 - 0.01 - Taurus Emerging Fund Ltd $ 155.03 158.19 -7.12 0.00
Global Property - Acc £ 1.47 - 0.01 1.28 Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.15 3.15 0.05 0.00
India Focus A-GBP £ 4.15 - -0.05 0.00 HL Multi-Manager Equity & Bond Trust M Acc 143.35 150.67 0.17 1.03
Fidelity PathFinder Focussed 4 Acc (clean) £ 1.08 - 0.00 -
Global Property W Inc £ 1.20 - 0.01 3.00 Hermes Global Emerging Markets Fund Class F Acc £ 1.12 1.12 0.01 0.00
Latin America A-GBP £ 1.24 - 0.00 0.67 HL Multi-Manager Strategic Bond Trust A Acc 165.62 170.74 0.11 1.80
Fidelity PathFinder Focussed 5 Acc (clean) £ 1.11 - 0.00 - Generali Worldwide
Global Special Sits £ 25.09 - 0.21 0.00 PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108 Hermes Global Emerging Markets Fund Class R Acc € 2.72 2.72 0.04 0.00
Sterling Cash Fund A-ACC-GBP £ 1.00 - 0.00 - HL Multi-Manager Strategic Bond Trust M Acc 165.60 170.72 0.10 0.89
International Insurances
Asset Management
Fidelity PathFinder Freedom 1 Gross Acc (clean) £ 1.06 - 0.00 -
Index Emerging Markets P-Acc £ 0.92 - 0.02 2.75 Hermes Global Equity Fund Class F Acc £ 1.45 1.45 0.01 0.00
Global Multi-Strategy Managed $ 4.44 4.79 0.07 0.00

Index Europe ex UK P-Acc £ 0.99 - 0.01 2.44

Fidelity PathFinder Freedom 2 Acc (clean) £ 1.04 - 0.00 - Asset Asset
Management
HL Multi-Manager Strategic Bond Trust A Inc 137.43 141.68 0.08 1.82

Management Hermes Global Equity Fund Class R Acc € 3.65 3.65 0.02 0.00
Asset
Ass
UK Multi-Strategy Managed £ 4.60 4.95 0.06 0.00
Findlay Park Funds Plc (IRL) HL Multi-Manager Strategic Bond Trust M Inc 137.42 141.67 0.09 0.91
Fidelity PathFinder Freedom 1 Acc (clean) £ 1.06 - 0.00 - 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900
Index Japan P-Acc £ 1.11 - 0.01 1.52 Hermes Global ESG Equity Fund Class F Acc £ 1.12 1.12 0.01 0.00
FCA Recognised EU Multi-Strategy Managed € 2.91 3.14 0.06 0.00
HL Multi Manager Emerging Markets A Acc 81.76 84.27 0.54 0.33
Fidelity PathFinder Freedom 3 Acc (clean) £ 1.02 - 0.00 - American Fund USD Class $ 74.91 - -0.16 0.00
Index Pacific ex Japan P-Acc £ 0.99 - 0.01 3.81 Hermes Global High Yield Bond Fund Class F Acc £ 1.07 1.07 0.00 0.00
Global Bond USD $ 3.40 3.66 0.01 0.00
HL Multi-Manager European A Acc 100.90 104.01 -0.23 0.74
Fidelity PathFinder Freedom 4 Acc (clean) £ 1.00 - 0.00 - American Fund GBP Hedged £ 40.81 - -0.08 0.00
Index UK A-Acc £ 0.80 - 0.01 2.90 Hermes Global High Yield Bond Fund Class R Acc € 2.66 2.66 0.00 0.00
HL Multi-Manager UK Growth A Acc 99.60 102.68 0.38 1.24
Fidelity PathFinder Freedom 5 Acc (clean) £ 1.07 - 0.00 - American Fund GBP Unhedged £ 52.15 - -0.47 -
Index UK P-Acc £ 0.98 - 0.02 3.15 Hermes Global Small Cap Fund Class F Acc £ £ 0.95 0.95 0.00 -
Genesis Asset Managers LLP
Fidelity PathFinder Income 1 Income (clean) £ 1.00 - 0.01 4.06 Latin American Fund USD Class $ 10.07 - 0.19 0.00 Other International Funds
Index US A-Acc £ 1.62 - 0.02 1.40 Hermes Global Small Cap Fund Class R Acc € € 1.79 1.79 0.01 -
Emerging Mkts NAV £ 4.85 - -0.01 0.00
Haussmann
Fidelity PathFinder Income 1 Gross Income (clean) £ 1.00 - 0.00 5.06 Latin American Fund GBP Unhedged £ 7.11 - 0.09 - Other International Funds
Index US P-Acc £ 1.25 - 0.02 1.60 Hermes Multi Asset Inflation Fund Class F GBP Acc £ 0.97 0.97 0.01 0.00
Haussmann Cls A $ 2574.62 - -108.37 0.00
Fidelity PathFinder Income 2 Income (clean) £ 1.01 - 0.00 3.55
Index World A-Acc £ 1.39 - 0.01 1.77 Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.01 1.01 0.00 0.00
Guardian (UK) Haussmann Cls C € 2248.78 - -95.69 0.00
Fidelity PathFinder Income 2 gross £ 1.02 - 0.01 4.44 Ballam Road, Lytham St Annes, Lancashire, FY8 4JZ 01253 733 151
Index World P-Acc £ 1.13 - 0.01 1.89 Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.27 1.27 0.00 0.00
Insurances Haussmann Cls D SFr 1188.89 - -51.05 0.00
Fidelity PathFinder Income 2 Gross Income (clean) £ 1.01 - 0.00 4.41 Guardian Assurance
Japan £ 2.72 - 0.02 0.00 Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.24 1.24 0.01 1.30
Equity S-GH Class B £ 11.52 - 0.13 -
Fidelity PathFinder Income 3 Income (clean) £ 1.02 - 0.01 4.11
Japan Smaller Companies £ 2.02 - 0.01 0.00 Hermes Sourcecap EU Alpha Fund Class R Acc € 2.95 2.95 0.02 0.00
Managed Fund Bond £ 22.54 23.48 0.02 -
Heartwood Wealth Management Limited (IRL)
Institutional OEIC Funds Regulated
MoneyBuilder Asset Allocator £ 1.17 - 0.01 0.64 First State Investments (UK) (1200)F (UK) Hermes Sourcecap EX UK Fund Class F Acc £ 1.34 1.34 0.00 0.00
America £ 3.85 - 0.04 0.52 Choices Wth-Pfts Lg-tm 321.60 338.50 0.10 -
23 St Andrew Square, Edinburgh, EH2 1BB Heartwood Caut Multi Asset B Acc 136.39 - -0.30 0.00
MoneyBuilder Balanced £ 0.50 - 0.01 4.04 enquiries@firststate.co.uk Hermes Sourcecap EX UK Fund Class R Acc € 3.02 3.02 0.01 0.00
Emerging Markets £ 3.02 - 0.05 0.81 Choices Wth-Pfts St-tm 272.20 286.50 0.00 -
Client Services: 0800 587 4141 Dealing Line: 0800 587 3388
Money Builder Dividend £ 2.55 - 0.03 4.54 Authorised Funds Hermes UK Small & Mid Cap Fund Class F Acc £ 1.62 1.62 0.01 0.00
Europe £ 3.98 - 0.03 1.54 Choices Managed 592.82 624.02 1.04 -
Asia Pacific A Shares 929.04 - 12.77 0.45 Henderson Global Investors (UK)
MoneyBuilder Growth £ 0.71 - 0.01 2.39 PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832 Hermes UK Small & Mid Cap Fund Class R Acc € 4.64 4.64 0.02 0.00
Fidelity Pre-Retirement Bond Fund £ 119.40 - 0.90 3.06 Choices Equity 642.63 676.45 4.42 -
Asia Pacific Leaders A Shares 464.52 - 6.21 0.29 www.henderson.com
MoneyBuilder Growth ISA £ 0.72 - 0.01 2.55 Authorised Inv Funds Hermes US All Cap Equity Class F Stg £ Acc £ 0.96 0.96 0.01 -
Global Focus £ 2.73 - 0.04 1.60 Freedom With Pfts Long-Tm 220.50 232.10 0.00 -
Asia Sustainability A Shares 352.13 - 6.40 0.43 Asia Pacific Capital Growth A Acc 677.90 - 11.20 0.16
MoneyBuilder Income £ 0.35 - 0.00 3.24 Hermes US All Cap Equity Class R € Acc € 1.79 1.79 0.00 -
Index Linked Bond £ 2.68 - 0.02 0.74 Freedom With Pfts Short-Tm 198.00 208.50 0.00 -
Emerging Markets Bond A Accumulation £ 1.17 - 0.00 4.92 Asian Dividend Income Inc 81.22 85.71 1.10 6.95
MoneyBuilder Income -Gross £ 0.35 - 0.00 3.23 Hermes US SMID Equity Fund Class F Acc £ 1.53 1.53 -0.01 0.00
Index Linked Bond Gross £ 3.25 - 0.03 0.74 Freedom Managed 346.07 364.29 0.30 -
Emerging Markets Bond A Income £ 1.02 - 0.00 5.06 Cautious Managed A Acc 232.80 - 1.60 3.31
Multi Asset Adventurous A-Acc £ 1.27 - 0.01 0.44 Hermes US SMID Equity Fund Class R Acc € 3.14 3.14 0.00 0.00
Index-Linked Bond Fund Gross Inc £ 12.63 - 0.09 0.74 Freedom Equity 380.01 400.01 2.26 -
Global Agribusiness Fund A Accumulation 110.25 - 1.43 0.00 Cautious Managed A Inc 143.90 - 0.90 3.37
Multi Asset Alloc Adventurous A-Acc £ 3.58 - 0.02 3.07
Japan £ 2.00 - 0.02 0.79 Corp Pens Mananged 209.28 209.28 0.37 -
Global Emerging Mkts A Shares 537.39 - 7.81 0.71 China Opportunities A Acc 776.00 - 10.00 0.66
Multi Asset Alloc Strategic A-Acc £ 1.15 - 0.00 0.38 Hermes Property Unit Trust (UK)

Asset Management
Long Bond £ 0.52 - 0.01 2.91 Corp Pens Equity 209.81 209.81 1.45 -
Global Emerging Mkts Leaders A Shares 393.36 - 6.97 0.76 Emerging Markets Opportunities A Acc 134.40 - 2.10 0.67 Property & Other UK Unit Trusts
Multi Asset Alloc Def - Gross A £ 1.11 - 0.00 0.36
Long Bond Gross £ 0.86 - 0.01 2.85
Global Emerging Mkts Sustainability A Acc 211.26 - 3.21 0.97
Corp Pens Fixed Interest Asset Management 302.40 302.40 2.09 -
European Growth A Acc 165.30 - 0.40 0.53
Property
Asset Management
£ 5.89 6.26 0.03 3.10

Multi Asset Alloc Def - Net A £ 1.11 - 0.00 0.38

Long Bond Fund Gross Inc £ 11.61 - 0.13 2.91 Corp Pens Index Linked 334.16 334.16 -2.94 -
Global Listed Infrastructure Acc 175.17 - 2.72 3.08 European Selected Opportunities A Acc 1241.00 - 2.00 0.67
Multi Asset Alloc Growth A £ 1.17 - 0.01 0.09
Pacific (Ex Japan) £ 3.33 - 0.02 1.85 Corp Pens Deposit 191.13 191.13 0.00 -
Global Listed Infrastructure Inc 136.24 - 2.11 3.15 Fixed Interest Monthly Income A Inc 21.38 22.42 0.02 5.83
 FINANCIAL TIMES Monday 1 February 2016 FTfm | 15

FTfm

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

Global Equity Income Acc F 116.13 - 1.45 3.60 European Equity (No Trail) Acc F 140.62 - 1.06 2.07 Invesco Global Select Equity A $ 11.58 - 0.04 0.00 Japan Inc 72.05 - 0.54 0.00

Hermes UK Residential Real Estate (UK) Global Equity Income Inc F 94.32 - 1.18 3.71 European Equity (No Trail) Inc F 116.55 - 0.88 2.12 Invesco Jap Eqty Core A $ 1.71 - 0.02 0.00 Multi-Asset Inc Mth Inc ... C 60.95 - 0.24 3.76
Property & Other UK Unit Trusts
VISTA UK Residential Real Estate £ 1.02 1.06 0.03 - Gbl Financial Capital Acc 83.56 - 0.11 4.29 European Equity Income (No Trail) Acc F 143.26 - 1.13 3.47 Invesco Japanese Equity A $ 17.97 - 0.29 0.00 Multi-Asset Inc Acc... C 81.65 - 0.31 3.74

Gbl Financial Capital Inc 70.31 - 0.09 4.42 European Equity Income (No Trail) Inc F 108.94 - 0.86 3.56 Invesco Korean Equity A $ 34.71 - 0.49 0.00 Multi-Asset Inc Inc... C 61.30 - 0.24 3.85

INDIA VALUE INVESTMENTS LIMITED (INVIL) Gbl Financial Cap Acc Gross 87.59 - 0.12 4.80 European High Income (No Trail) Acc F 163.85 - 0.75 3.46 Invesco PRC Equity A $ 44.24 - 1.07 0.00 Multi-Asset Macro Acc 67.01 - 0.02 0.00
Invesco (LUX)
www.invil.mu Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282
Other International Funds Gbl Financial Cap Inc Gross 70.60 - 0.10 4.98 European High Income (No Trail) Inc F 118.40 - 0.55 3.52 Invesco Pacific Equity A $ 42.96 - 0.55 0.07 Multi-Asset Macro Inc 67.01 - 0.02 0.00
FCA Recognised
NAV £ 8.05 - 0.04 0.00 Invesco Management SA
Global Opportunities Acc F 86.92 - 0.61 0.48 European Opportunities (No Trail) Acc F 175.95 - 1.78 1.60 Invesco Global Technology A $ 13.87 - -0.06 0.00 Multi-Manager Growth Acc 690.90 - 4.70 0.48
Invesco Active Multi-Sector Credit Fund A € 2.82 - 0.00 0.00

Global Smaller Cos Acc F 1592.52 - 6.36 0.20 European Opportunities (No Trail) Inc F 164.50 - 1.67 1.62 Invesco UK Eqty A £ 7.44 - 0.07 1.38 Multi-Manager Growth Inc 644.80 - 4.40 0.48
Invesco Asia Balanced A dist $ 13.41 - 0.14 3.82
Intercapital Asset Management Ltd (HRV)
Masarykova ul. 1, 10000, Zagreb, Croatia Global Smaller Cos Inc F 1520.67 - 6.07 0.20 European Smaller Companies (No Trail) Acc F 229.47 - 2.04 0.71 Natural Resources Acc 294.90 - 2.60 0.14
Invesco Asia Consumer Demand Fund A income $ 11.47 - 0.16 0.24
www.icam.hr, Tel; +385 1 4825 868
Other International Funds Global Targeted Rets Acc 56.60 - 0.04 0.32 Global Balanced Index (No Trail) Acc F 153.27 - 0.97 2.04
Invesco Asia Infrastructure (A) $ 11.34 - 0.19 0.78
Invest AD Natural Resources Inc 20.89 - 0.19 0.14
Capital One Bond Fund (Ex-YU) HRK 204.21 - 0.06 - Client services: +971 2 692 6101 clientservices@InvestAD.com
High Income Acc F 799.96 - 8.40 3.32 Global Bond (No Trail) Acc F 141.46 - 0.00 1.41 Other International Funds Portfolio Acc 191.70 - 0.70 0.71
Invesco Asia Opportunities Equity A $ 95.08 - 1.57 0.00
Capital Two Equity Fund (Ex-YU) HRK 88.52 - -0.01 - Invest AD - Iraq Opportunity Fund $ 55.89 - -3.47 0.00
High Income Inc F 435.21 - 4.57 3.40 Global Bond (No Trail) Inc F 127.89 - 0.00 1.42 Sterling Corporate Bond Acc 82.92 - 0.45 2.41
Invesco Balanced Risk Allocation Fund A € 14.34 - 0.13 0.00
Invest AD - Emerging Africa Fund $ 853.00 - 13.74 0.00
High Yield Fund Acc 102.60 - 0.13 5.30 Glbl Distribution Acc (No Trail) 102.89 - 0.66 3.97 Sterling Corporate Bond Inc 51.83 - 0.28 2.41
Invesco Emerging Europe Equity Fund A $ 7.04 - 0.10 0.00
Intrinsic Value Investors (IVI) LLP (IRL) Invest AD - GCC Focus Fund $ 1248.87 - 27.65 0.00
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 High Yield Fund Acc (Gross) 120.01 - 0.16 5.27 Glbl Distribution Inc (No Trail) 97.19 - 0.63 4.04 Strategic Bond Acc 67.72 - 0.10 3.40
Invesco Emerging Local Currencies Debt A Inc $ 6.48 - 0.07 7.11
FCA Recognised
IVI European Fund EUR € 16.61 - -0.14 0.00 High Yield Fund Inc 40.59 - 0.05 5.44 Gbl Emerging Markets (No Trail) Acc F 146.95 - 2.80 1.60 Strategic Bond Inc 56.21 - 0.08 3.40
Invesco Emerging Mkt Quant.Eq. A $ 8.27 - 0.18 0.00

IVI European Fund GBP £ 17.01 - -0.19 0.67 High Yield Fund Inc (Gross) 40.73 - 0.06 5.44 Gbl Emerging Markets (No Trail) Inc F 136.54 - 2.60 1.63 UK Dynamic Acc 154.80 - 1.30 1.52
Invesco Energy A $ 14.74 - 0.52 0.00

Hong Kong & China Acc F 434.92 - 6.55 0.77 Global Equity (No Trail) acc F 193.77 - 0.83 1.19 UK Dynamic Inc 126.60 - 1.10 1.54
Invesco Euro Corporate Bond Fund (A) € 16.77 - 0.00 0.00

Income & Growth Acc F 924.03 - 11.67 4.07 Global Equity (No Trail) inc F 179.28 - 0.76 1.21 UK Eq & Bond Inc Acc ... C 136.80 - 1.00 3.47
Invesco Euro Inflation Linked Bond A € 15.61 - 0.11 0.00
JPMorgan Asset Mgmt (1200)F (UK)
Income & Growth Inc F 394.35 - 4.98 4.19 Global Equity Income (No Trail ) Acc F 240.49 - 3.02 3.59 UK Eq & Bond Inc Inc ... C 79.62 - 0.62 3.54
Invesco Euro Reserve A € 322.64 - 0.00 0.00 60 Victoria Embankment, London EC4Y 0JP
Brokerline: 0800 727 770, Clients: 0800 20 40 20
Income Acc F 3070.67 - 31.65 3.17 Global Equity Income (No Trail) Inc F 195.32 - 2.45 3.70 UK Equity Blue Chip Acc 62.74 - 0.69 2.25
Invesco Euro Bond A € 7.13 - 0.02 0.00 Authorised Inv Funds
JPM Retail OEIC (A class unless stated)
Income Inc F 1707.74 - 17.61 3.24 Global ex UK Core Equity Index ( No Trail) Acc F 166.65 - 0.65 1.54 UK Equity Blue Chip Inc 52.52 - 0.58 2.29
Invesco Fund Managers Ltd (UK) Invesco European Growth Equity A € 23.00 - 0.20 0.00 America Equity Acc 58.55xd - 0.76 0.00
Perptual Park, Henley-On-Thames, Oxon, RG9 1HH Japan Acc F 311.38 - 3.96 0.29 Global ex UK Enhanced Index ( No Trail) Acc F 194.19 - 0.94 2.04 UK Equity Core Acc 267.90 - 2.80 3.20
Dealing: 0800 085 8571 Invesco Global Absolute Return Fund A Class € 11.67 - 0.04 0.00 America Equity Inc 58.55xd - 0.76 0.00
Investor Services: 0800 085 8677 Japanese Smlr Cos Acc F 68.30 - 0.85 0.00 Gbl Fin Cap No Trail Acc 170.47 - 0.24 4.28 UK Equity Core Inc 50.51 - 0.52 3.20
www.invescoperpetual.co.uk Invesco Global Bond A Inc $ 5.44 - 0.00 0.75 Asia Acc 114.80 - 1.90 0.34
Authorised Inv Funds Latin America Acc F 91.36 - 1.34 1.22 Gbl Fin Cap No Trail Inc 143.47 - 0.20 4.41 UK Equity Growth Acc 108.80 - 0.90 1.21
INVESCO PERPETUAL Funds Invesco Global Conservative Fund 90 (EUR) A € 11.80 - 0.00 0.00 Asia Inc 63.71 - 1.06 0.33
Asian Acc F 407.61 - 6.02 0.60 Latin America Inc F 76.05 - 1.11 1.23 Global Opportunities (No Trail) Acc F 223.91 - 1.58 1.03 UK Equity Growth Inc 101.50 - 0.90 1.22
Invesco Global Equity Income Fund A $ 54.24 - 0.66 0.00 Cautious Managed Rt Acc 68.31 - 0.31 0.44
Asian Inc F 364.11 - 5.38 0.60 Managed Growth Acc F 152.08 - 1.41 0.71 Global Smaller Companies (No Trail) Acc F 232.91 - 0.93 0.75 UK Higher Inc Acc ... C 875.10 - 9.60 4.28
Invesco Global Inc Real Estate Sec A dist $ 8.87 - 0.05 2.24 Cautious Managed Rt Inc 60.09 - 0.28 0.44
Asian Equity Income Acc F 53.60 - 1.03 4.92 Managed Growth Inc F 126.61 - 1.18 0.72 Global Smaller Companies (No Trail) Inc F 222.55 - 0.89 0.75 UK Higher Inc Inc ... C 508.60 - 5.60 4.42
Invesco Global Inv Grd Corp Bond A Dist $ 11.81 - 0.03 3.04 Diversified Real Ret Acc 49.90 - 0.23 1.08
Asian Equity Income Inc F 44.57 - 0.86 5.08 Managed Income Acc F 153.41 - 1.23 2.95 Global Targeted Rets (No Trail) Acc 114.46 - 0.09 0.85 UK Smaller Cos Acc 364.90xd - -0.50 0.29
Invesco Global Leisure A $ 33.00 - -0.14 0.00 Diversified Real Ret Inc 48.47 - 0.23 1.09
Balanced Risk 6 Acc 50.82 - 0.40 0.00 Managed Income Inc F 93.49 - 0.75 3.00 High Income (No Trail) Acc F 171.24 - 1.80 3.30 UK Smaller Cos Inc 70.67xd - -0.08 0.29
Invesco Global Smaller Comp Eq Fd A $ 52.47 - 0.13 0.00 Emerging Mkts Acc 128.90 - 2.60 0.80
Balanced Risk 8 Acc 51.69 - 0.54 0.00 Money Acc F 90.24 - 0.00 0.21 High Income (No Trail) Inc F 124.17 - 1.31 3.38
Invesco Global Structured Equity A $ 43.64 - 0.13 0.74 Emerging Mkts Inc 55.42 - 1.10 0.81
Asset Management
UK Strategic Eq Inc Acc ... C 142.50 - 1.60 3.97

Asset Management
Balanced Risk 10 Acc 52.51 - 0.69 0.13

Asset Management Asset Management

Money Acc (Gross) F 95.38 - 0.01 0.21 High Yield Fund (No Trail) Acc 212.86 - 0.28 5.28 UK Strategic Eq Inc Inc ... C 92.17 - 1.08 4.06
Invesco Global Total Ret.(EUR) Bond Fund A € 12.91 - 0.00 0.00 Emrg Eur Eq Acc 128.70 - 1.90 2.82
Childrens Acc F 367.95 - 3.74 1.81 Monthly Income Plus Acc F 290.00 - 0.79 4.94 High Yield Fund (No Trail) Inc 156.88 - 0.20 5.43 US Acc 686.00 - -1.30 0.00
Invesco Gold & Precious Metals A $ 3.35 - -0.04 0.00 Emrg Eur Eq Inc 30.59 - 0.45 2.78
Corporate Bd Acc (Gross) F 205.73 - 0.26 3.52 Monthly Income Plus Acc (Gross) F 341.72 - 0.93 4.92 Hong Kong & China (No Trail) Acc F 172.66 - 2.60 1.34 US Inc 94.94 - -0.19 0.00
Invesco Greater China Equity A $ 39.22 - 0.61 0.00 Emrg Mkts Inc Acc... C 45.25 - 1.20 5.46
Corporate Bd Inc (Gross) F 87.42 - 0.11 3.62 Monthly Income Plus Inc F 106.15 - 0.29 5.05 Income & Growth (No Trail) Acc F 217.77 - 2.76 4.05 US Equity Income Acc ... C 119.00 - 0.50 2.18
Invesco India Equity A $ 48.07 - 1.24 0.00 Emrg Mkts Inc Inc... C 39.47 - 1.04 5.62
Corporate Bond Acc F 182.84 - 0.23 3.54 Monthly Income Plus Inc (Gross) F 106.35 - 0.29 5.05 Income & Growth (No Trail) Inc F 169.58 - 2.15 4.17 US Equity Income £ hdg Inc ... C 91.86 - 0.35 2.40
Invesco Japanese Equity Adv Fd A ¥ 3642.00 - 105.00 0.00 Europe Acc 1027.00 - 6.00 1.51
Corporate Bond Inc F 87.22 - 0.11 3.62 Pacific Acc F 933.50 - 11.79 0.40 Income (No Trail) Acc F 168.92 - 1.75 3.16 US Equity Income Inc ... C 101.00 - 0.40 2.20
Invesco Japanese Value Eq Fd A ¥ 1218.00 - 43.00 0.00 Europe Inc 59.11 - 0.33 1.51
Distribution Acc F 106.42 - 0.57 4.59 Pacific Inc F 854.25 - 10.79 0.41 Income (No Trail) Inc F 123.67 - 1.28 3.23 US Select Acc 107.00 - 0.40 0.00
Invesco Latin American Equity A $ 5.02 - 0.07 0.00 Eur Dynamic exUK Acc 158.00 - 0.70 0.83
Distribution Acc (Gross) F 122.06 - 0.66 4.56 Tactical Bond Acc F 68.67 - 0.08 0.82 Japan (No Trail) Acc F 148.11 - 1.88 0.83 US Select Inc 105.60 - 0.30 0.00
Invesco Nippon Small/Mid Cap Equity A ¥ 994.00 - 26.00 0.00 Eur Dynamic exUK £ hdg Acc 173.50 - 1.00 0.76
Distribution Inc F 61.63 - 0.33 4.68 Tactical Bond Inc F 59.54 - 0.07 0.82 Japanese Smaller Companies (No Trail) Acc F 174.17 - 2.17 0.00 US Smaller Cos Acc 327.10xd - -3.80 0.00
Invesco Pan European Equity A EUR Cap NAV € 17.12 - 0.11 0.00 Eur Dynamic exUK Inc 72.53 - 0.34 0.82
Distribution Inc (Gross) F 61.67 - 0.33 4.68 Tactical Bond Acc (Gross) F 71.27 - 0.08 0.82 Latin American (No Trail) Acc F 88.43 - 1.29 1.97 US Smaller Cos Inc 85.72xd - -0.99 0.00
Invesco Pan European High Income Fd A € 13.34 - 0.06 2.48 Eur Smaller Cos Acc 502.30xd - -0.10 0.03
Emerging European Acc F 32.12 - 0.50 3.04 Tactical Bond Inc (Gross) F 59.61 - 0.07 0.82 Latin American (No Trail) Inc F 79.41 - 1.16 2.01
Invesco Pan European Small Cap Equity A € 21.07 - 0.15 0.00 Eur Smaller Cos Inc 65.32xd - -0.01 0.02
Emerging European Inc F 29.28 - 0.45 3.12 UK Focus Acc F 182.87 - 1.67 1.86 Managed Growth (No Trail) Acc F 184.56 - 1.72 1.23 JPMorgan Charity Funds (UK)
Invesco Pan European Structured Equity A € 16.44 - 0.15 0.00 Global Allocation Acc 50.83xd - 0.28 0.95
60 Victoria Embankment, London EC4Y 0JP 020 7742 9175
European Equity Acc F 795.54 - 6.01 1.53 UK Focus Inc F 149.41 - 1.37 1.89 Managed Growth (No Trail) Inc F 169.72 - 1.57 1.25 Property & Other UK Unit Trusts
Invesco UK Eqty Income A £ 30.71 - 0.32 0.00 Global Allocation Inc 50.05xd - 0.28 0.96
UK Equity Fund for Charities I...C £ 2.639544xd 2.650783 1.638534 3.90
European Equity Inc F 663.79 - 5.01 1.55 UK Growth Acc F 503.72 - 5.08 1.89 Managed Income (No Trail) Acc F 184.02 - 1.48 2.93
Invesco UK Investment Grade Bond A £ 0.99 - 0.01 2.89 Global Bond exUK Acc 254.60 - 0.80 0.74
Bond Fund for Charities £ 1.350215xd 1.356612 0.349205 3.62
European Equity Income Acc F 69.47 - 0.55 3.48 UK Growth Inc F 312.93 - 3.16 1.92 Managed Income (No Trail) Inc F 150.39 - 1.20 2.99
Invesco US Structured Equity A $ 19.51 - 0.00 0.00 Global Bond exUK Inc 200.30 - 0.70 0.74
European Equity Income Inc F 52.81 - 0.41 3.56 UK Smaller Cos Equity Acc F 842.26 - 2.34 0.76 Monthly Income Plus (No Trail) Acc F 167.45 - 0.46 4.93
Invesco US Value Eq Fd A $ 27.61 - 0.14 0.00 Global Bond Opport. Acc 48.11xd - 0.10 2.93
European High Income Acc F 79.46 - 0.37 3.47 UK Smaller Cos Equity Inc F 644.99 - 1.79 0.76 Monthly Income Plus (No Trail) Inc F 104.73 - 0.28 5.04
Invesco USD Reserve A $ 87.02 - 0.00 0.00 Global Bond Opport. Inc 46.99xd - 0.10 3.00
European High Income Inc F 57.42 - 0.27 3.53 UK Strategic Income Acc F 181.21 - 1.87 3.54 Pacific (No Trail) Acc F 173.36 - 2.20 0.92
Global Eq Income £ hdg Acc... C 64.60 - 0.44 3.35
European Opportunities Inc F 81.17 - 0.83 1.09 UK Strategic Income Inc F 133.50 - 1.37 3.63 Pacific (No Trail) Inc F 163.09 - 2.06 1.03
Invesco Global Asset Management Ltd (IRL) Global Eq Income £ hdg Inc ... C 46.30 - 0.31 3.42
European Opportunities Acc F 83.96 - 0.85 1.08 Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200 GAM
US Equity Acc F 499.40 - 3.16 0.00 Tactical Bond (No Trail) Acc F 140.66 - 0.15 1.32
FCA Recognised Global Eq Income Acc... C 70.62 - 0.37 3.20 funds@gam.com, www.jbfundnet.com
European Smlr Cos Acc F 186.65 - 1.66 0.22 Invesco Stlg Bd A QD F £ 2.57 - 0.00 3.34 Regulated
Invesco Perpetual Funds (No Trail) Tactical Bond (No Trail) Inc F 119.25 - 0.13 1.33
Global Eq Income Inc ... C 61.18 - 0.32 3.25 Ms EF Special Val. EUR/A € 129.99 - -0.70 1.15
Asian (No Trail) Acc F 171.00 - 2.53 1.18
Global Bd Acc (Gross) F 133.98 - 0.00 1.16 Invesco Asian Equity A $ 5.63 - 0.10 0.53
UK Focus (No Trail) Acc F 150.61 - 1.38 2.41
Global Financials Acc 660.90 - 5.50 0.95 Strategy Balanced-CHF/B SFr 144.36 - -0.31 0.00
Asian (No Trail) Inc F 153.82 - 2.28 1.19
Global Bd Inc (Gross) F 82.49 - -0.01 1.17 Invesco ASEAN Equity A $ 85.02 - 1.18 0.29
UK Focus (No Trail) Inc F 123.65 - 1.13 2.46
Global Financials Inc 37.59 - 0.32 0.95 Strategy Balanced-EUR € 148.53 - -0.48 0.00
Asian Equity Income (No Trail) Acc F 109.84 - 2.10 4.91
Global Bond Acc F 125.82 - -0.01 1.17 Invesco Bond A $ 26.68 - 0.00 1.99
UK Enhanced Index (No Trail) Acc F 379.44 - 3.86 3.66
Global High Yield Bd Mth Inc C 34.11 - 0.10 7.34 Strategy Balanced-USD/B $ 124.27 - -0.10 0.00
Asian Equity Income (No Trail) Inc 91.34 - 1.75 5.07
Global Bond Inc F 82.42 - 0.00 1.17 Invesco Continental Eurp Small Cap Eqty A $ 183.77 - -0.12 0.00
UK Enhanced Index (No Trail) Inc F 236.33 - 2.41 3.75
Global High Yield Bd Acc C 91.11 - 0.28 7.29 Strategy Growth-CHF/B SFr 87.70 - -0.26 0.00
Balanced Risk 6 No Trail Acc 103.61 - 0.81 0.18
Glbl Distribution Acc 51.01 - 0.32 5.05 Invesco Emerging Markets Equity A $ 31.81 - 0.50 0.00
UK Growth (No Trail) Acc F 133.38 - 1.35 2.42
Global High Yield Bd Inc C 34.42 - 0.10 7.29 Strategy Growth-EUR € 109.35 - -0.50 0.00
Balanced Risk 8 No Trail Acc 105.36 - 1.09 0.44
Glbl Distribution Acc (Gross) 51.77 - 0.33 5.05 Invesco Emerging Markets Bond A $ 20.10 - 0.03 4.66
UK Growth (No Trail) Inc F 106.29 - 1.08 2.47
Global Property Secs Acc 55.21 - 0.37 0.61 Strategy Inc-CHF/B SFr 116.83 - -0.14 0.00
Balanced Risk 10 No Trail Acc 107.06 - 1.39 0.60
Glbl Distribution Inc 48.19 - 0.31 5.07 Invesco Continental European Equity A € 7.89 - 0.04 0.20
UK Smaller Companies Equity (No Trail) Acc F 274.51 - 0.77 1.23
Global Property Secs Inc 47.65 - 0.32 0.61 Strategy Inc-EUR/B € 156.03 - -0.31 0.00
Corporate Bond (No Trail) Acc F 162.79 - 0.20 3.79
Glbl Distribution Inc (Gross) 48.21 - 0.31 5.07 Invesco Gilt A £ 15.38 - 0.11 1.39
UK Smaller Companies Equity (No Trail) Inc F 253.24 - 0.71 1.25
Global Unconstrained Eq. Acc 932.10 - -9.00 0.16 Strategy Inc-USD/B $ 143.09 - 0.00 0.00
Corporate Bond (No Trail) Inc F 115.32 - 0.15 3.87
Global Emerging Markets Acc F 223.96 - 4.27 1.00 Invesco Global Small Cap Equity A NAV $ 108.06 - 0.40 0.00
UK Strategic Income (No Trail) Acc F 720.56 - 7.45 3.54
Global Unconstrained Eq. Inc 69.28 - -0.66 0.15
Distribution (No Trail) Acc F 163.44 - 0.88 4.57
Global Emerging Markets Inc F 201.96 - 3.85 1.01 Invesco Global High Income A NAV $ 11.52 - 0.02 6.06
UK Strategic Income (No Trail) Inc F 530.90 - 5.49 3.63
Income Acc ... C 48.23 - 0.07 7.48
Distribution (No Trail) Inc F 107.76 - 0.58 4.66
Global Equity (acc) F 438.49 - 1.86 0.64 Invesco Gbl R/Est Secs A GBP F F £ 7.81 - 0.05 0.88
US Equity (No Trail) Acc F 208.19 - 1.32 0.11
Income Inc ... C 44.44 - 0.05 7.61
Emerging European (No Trail) Acc F 66.88 - 1.02 3.64
Global Equity (inc) F 397.52 - 1.69 0.64 Invesco Global Health Care A $ 111.00 - -2.76 0.00
Japan Acc 299.30 - 2.20 0.00
Emerging European (No Trail) Inc F 59.10 - 0.91 3.76
 16 | FTfm FINANCIAL TIMES Monday 1 February 2016

FTfm

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

M&G Dividend A Inc 58.01xd - 0.64 4.73 Research Bond A1 $ 16.54 - 0.01 0.00

M&G Dividend A Acc 588.98xd - 6.55 4.56 Majedie Asset Management LTD (IRL) UK Equity A1 £ 7.60 - -0.02 0.00 Marlborough International Management Limited (GSY)
FCA Recognised Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520
M&G Episode Growth X Inc 47.62 - 0.44 1.92 US Equity Z Acc GBP £ 1.22 - -0.01 0.00 US Conc.Growth A1 $ 14.31 - -0.02 0.00 FCA Recognised
Marlborough North American Fund Ltd £ 30.62 32.63 0.47 0.00
M&G Episode Income A Acc 130.88 - 1.01 3.74 Tortoise Z Acc GBP £ 0.95 - 0.00 0.00 US Government Bond A1 $ 17.22 - 0.02 0.00
Marlborough Tiger Fund Ltd F £ 23.75 25.31 -0.65 0.00
M&G Episode Income A Inc 108.54 - 0.84 3.82 Value A1 $ 20.20 - 0.04 0.00
Kames Capital ICVC (UK) Lazard Fund Managers Ltd (1200)F (UK)
Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA Mellon House Ingrave Rd Brentwood Essex CM15 8TG
0800 45 44 22 www.kamescapital.com Dealing: 0870 6066408, Info: 0870 6066459
M&G Extra Income A Inc 702.18 - 6.77 4.64 MFS Investment Funds (LUX)
Authorised Funds Authorised Inv Funds FCA Recognised Marwyn Asset Management Limited (CYM)
Diversified Income B Acc 110.52 - 0.74 0.00 Lazard Investment Funds (OEIC) Retail Share Class
M&G Extra Income A Acc 5793.10 - 55.82 4.50 Blend.Research Gb.Eq.Fd. € 94.06 - -0.58 - MMIP Investment Management Limited (GSY) Regulated
Regulated Marwyn Value Investors £ 450.92 - -7.87 0.00
Developing Markets Acc 68.63 - 1.17 0.00
M&G Global Basics A Inc 595.72 - 3.99 0.64 Blend.Research Gb.Eq.Fd. £ 96.08 - -0.88 - Multi-Manager Investment Programmes PCC Limited
Diversified Income B Inc 100.34 - 0.68 0.00
European Equity Fd Cl A Initial Ser € 2642.19 2642.19 62.94 0.00
Developing Markets Inc 67.80 - 1.15 0.00
M&G Global Basics A Acc 905.21 - 6.07 0.59 Blend.Research U.S.Core Eq.Fd. ¥ 9344.00 - 43.00 -
Diversified Growth B Acc £ 1.36 - 0.01 3.28
Emerging Markets Acc 211.30 - 4.20 1.67
Japanese Equity Fd Cl A Initial Ser ¥ 368031.00 368031.00 6127.00 0.00 McInroy & Wood Portfolios Limited (UK)
M&G Global Dividend Fund A Acc 178.36xd - 2.28 3.53 Blend.Research Gb.Eq.Fd. $ 90.83 - 0.00 - Easter Alderston, Haddington, EH41 3SF 01620 825867
Ethical Cautious Managed B Acc £ 1.20 - 0.01 2.29
MMIP - US EQUITY CLASS A 01 June 07 Series $ 1304.31 1304.31 168.32 0.00 Authorised Inv Funds
Emg Mkts Inc 184.60 - 3.60 1.69
M&G Global Dividend Fund A Inc 139.65xd - 1.79 3.60 Em.Mk.Eq.Fund Euro € 99.08 - 0.16 0.00 Balanced Fund Personal Class Units 3914.30 - 15.40 1.89
Ethical Cautious Managed B Inc £ 1.13 - 0.00 2.32
Pacific Basin Fd Cl A Initial Ser $ 2059.34 2059.34 -82.99 0.00
European Alpha Acc 638.90 - 2.40 1.44
M&G Glbl Emrgng Mkts A Acc 170.35 - 2.70 1.02 Em.Mk.Eq.Fund Sterling £ 88.58 - -0.12 0.00 Income Fund Personal Class Units 2347.30xd - 20.10 3.00
Ethical Corporate Bond B Acc £ 1.71 - 0.01 3.70
UK Equity Fd Cl A Series 01 £ 2318.62 2346.23 -38.83 0.00
European Alpha Inc 580.40 - 2.20 1.43
M&G Glbl Emrgng Mkts A Inc 164.58 - 2.60 1.03 Em.Mk.Eq.Fd.US Dollar $ 82.78 - 0.65 0.00 Emerging Markets Fund Personal Class Units 1573.20 - 26.30 2.49
Ethical Corporate Bond B Inc £ 0.99 - 0.00 3.77
Diversified Absolute Rtn Fd USD Cl AF2 $ 1589.77 - 3.37 0.00
European Smaller Cos Acc 434.00 - 1.00 0.45
Ethical Equity B Acc £ 1.93 - 0.02 2.08
M&G Global Macro Bond Fund A Acc 110.32 - 0.16 1.96 Gb.Conc.Eq.Fd.Euro € 260.88 - -3.01 0.00
Asset Management
Smaller Companies Fund Personal Class Units 3532.90 - 26.30 1.75

et Management Global Equity Income Acc 118.00 - 1.10 5.87

Diversified Absolute Return Stlg Cell AF2 £ 1610.37 - 2.62 0.00
High Yield Bond B Acc £ 2.37 - 0.01 5.16
Global Equity Income Inc
Asset Management
79.10 - 0.71 6.03
M&G Global Macro Bond Fund A Inc 76.43 - 0.11 1.96
Asset Management
Gb.Conc.Eq.Fd.Sterl.UK T £ 165.96 - -2.42 0.00

M&G Global High Yield Bond X Inc 46.64 - 0.13 4.80 Gb.Conc.Eq.Fd.Sterling £ 251.14 - -3.66 0.00 Meridian Fund Managers Ltd
High Yield Bond B Inc £ 0.94 - 0.00 5.28
Managed Bal Inc 131.20 - 1.10 2.15 Manek Investment Mgmt Ltd (1000)F (UK) Other International Funds
M&G Global High Yield Bond X Acc 110.73 - 0.29 4.80 Gb.Conc.Eq.Fd.US $ 180.69 - -0.94 0.00 P.O.Box 100, Swindon SN1 1WR 0844 800 9401 Global Gold & Resources Fund $ 184.00 - 2.35 -
Investment Grade Bond B Acc 159.11 - 0.37 1.50
UK Income Acc 1119.00 - 11.00 4.51 Authorised Inv Funds
M&G Managed Growth X Inc 71.92 - 0.52 0.60 Gb.Eq.Hdg Fd.Euro IRE T € 169.81 - -0.95 0.00 Growth Fd Acc 53.96 57.22 -0.09 0.00 Global Energy & Resources Fund $ 31.18 - -3.49 -
Investment Grade Bond B Inc £ 1.16 - 0.00 3.58
UK Income Inc 546.20 - 5.70 4.60
M&G Optimal Income A Inc 139.11 - 0.10 2.81 Gb.Eq.Euro Hdg Fd. € 240.60 - -1.34 0.00
Sterling Corporate Bond B Acc £ 0.74 - 0.00 3.39
UK Omega Acc 191.90 - 1.90 1.59
M&G Optimal Income A Acc 183.78 - 0.15 2.81 Gb.Eq.Fund Euro € 262.49 - -2.30 0.00 LNG Capital (CYM)
Sterling Corporate Bond B Inc £ 0.32 - 0.01 3.45
UK Omega Inc 181.50 - 1.80 1.64 Kingsbury House, 15-17 King St, London SW1Y 6QU
M&G Recovery GBP A Inc 105.30xd - 0.74 0.88 Gb.Eq. Fd Euro IRE T € 166.11 - -1.45 0.00 www.lngcapital.com, Tel: 0207 839 3456
Strategic Bond B Acc £ 1.09 - 0.00 2.78
UK Smaller Cos Inc 1602.00 - 6.00 1.04 Regulated
M&G Recovery GBP A Acc 237.40xd - 1.66 0.87 Gb.Eq.Fd.Sterling UK T £ 201.93 - -2.38 0.00 LNG Europa Credit Fund EUR (Est) € 1196.70 - 65.31 -
Strategic Bond B Inc £ 1.14 - 0.00 2.81

M&G Strategic Corp Bond A Inc 72.26 - 0.20 3.09 Gb.Eq.Fd.US Dollar $ 287.03 - -0.70 0.00 LNG Europa Credit Fund GBP (Est) £ 1196.70 - 56.94 -
UK Equity B Acc £ 2.51 - 0.02 2.35 Emerging Markets Managed Accounts PLC (IRL)
LF Funds (Banque Libano-Francaise Group) (LUX) info@emmaplc.com,+44(0)20 8123 8369 www.emmaplc.com
M&G Strategic Corp Bond A Acc 104.30 - 0.29 3.09 Gb.Eq.Fund Sterling £ 199.54 - -2.35 0.00 LNG Europa Credit Fund USD $ 1183.45 - -15.60 -
UK Equity Absolute Return B Acc £ 1.24 - 0.00 0.00 www.eblf.com - lffunds@eblf.com Regulated
Regulated Milltrust ASEAN A $ 83.20 - 0.36 0.00
M&G Global Leaders GBP A Inc 180.89 - 1.45 1.45 Gb.Val.Ex-Jap.Fd.USD $ 110.07 - 0.30 0.00
UK Equity Income B Acc £ 2.10 - 0.02 4.69 LF Total Return Bond Fund - Class A $ 116.77 - 0.15 0.00

M&G Global Leaders GBP A Acc 426.04 - 3.41 1.44 Milltrust India A $ 112.93 - -1.38 0.00
UK Equity Income B Inc £ 1.62 - 0.02 4.83 Gb.Val.Ex-Japan Fd.Yen ¥ 12847.00 - 31.00 0.00 Marlborough Fd Managers Ltd (1200)F (UK)
LF Total Return Bond Fund - Class D $ 114.78 - 0.15 0.00
Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500
M&G UK Inflation Lnkd Corp Bnd A Acc 109.19 - 0.03 0.47 Milltrust Latin America A $ 57.76 - 0.26 0.00
UK Opportunities B Acc £ 1.70 - 0.02 2.27 Gb.Val.Fd. Euro € 124.96 - -0.33 0.00 www.marlboroughfunds.com
Authorised Inv Funds
M&G UK Inflation Lnkd Corp Bnd A Inc 107.62 - 0.03 0.47 Milltrust Keywise China Fund $ 101.54 - -0.78 0.00
UK Smaller Companies B Acc £ 2.83 - 0.02 1.40 Gb.Val.Fd.Sterling £ 115.71 - -0.65 0.00 Balanced 151.66 160.36 0.61 0.05
Lloyds Investment Fund Managers Limited (1000)F (JER)
PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
Gb.Val.Fd.USD $ 98.54 - 0.36 0.00 Bond Income 49.22 52.08 0.13 4.97
Other International Funds
Lloydstrust Gilt £ 12.3900xd - 0.0700 2.28 Ministry of Justice Common Investment Funds (UK)
M & G Securities Ltd (UK) Low Volatility Gb.Eq.Fd.Euro € 99.85 - -0.27 - Cash 50.06 50.06 0.00 0.32
Kames Capital Investment Portfolios ICVC (UK) Property & Other UK Unit Trusts
Property & Other UK Unit Trusts
Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA Lloyds Investment Funds Limited The Equity Idx Tracker Fd Inc 1262.00 1262.00 9.00 2.87
Charibond 124.17 - 0.60 5.20 Low Volatility Gb.Eq.Fd.Sterl £ 101.99 - -0.58 - Cautious Inc 80.56 84.79 -0.11 1.13
0800 45 44 22 www.kamescapital.com Euro High Income € 1.6010xd - 0.0070 2.96
Authorised Funds Distribution Units
(Accum Units) 3676.14 - 17.88 5.20 Low Volatility Gb.Eq.Fd.USD $ 96.42 - 0.34 - Defensive A Inc 117.59 117.59 0.10 0.27
Property Income B Acc 119.57 - 0.49 4.62 European £ 7.2690 - -0.0180 1.31
NAACIF 72.40 - 0.70 4.83 Low Volatility Gb.Eq.Fd.Yen ¥ 8927.00 - 29.00 - Emerging Markets 209.50 209.50 3.39 1.82
Property Income B Inc 110.40 - 0.46 4.77 High Income £ 0.8531 - 0.0032 5.03
(Accum Units) 6489.14 - 62.52 4.71 ETF Global Growth A 150.51 150.51 1.22 0.00
International £ 3.8270 - 0.0190 1.17

Kames Capital VCIC (IRL) North American £ 14.9000 - -0.0700 0.24

M&G Property Portfolio A Acc 136.45 143.63 0.35 3.22 MFS Meridian Funds SICAV (LUX) ETF Commodity A 64.64 64.64 0.20 0.00
Regulated
1 North Wall Quay, Dublin 1, Ireland +35 3162 24493
Property Portfolio A 124.40 130.94 0.32 3.28 Absolute Return A1 € 19.77 - 0.04 0.00 European Multi-Cap 291.07 291.07 0.42 0.29
FCA Recognised Sterling Bond £ 1.4440xd - 0.0060 3.75
Absolute Return Bond B GBP Acc 1079.26 - -0.59 - Mirabaud Asset Management (LUX)
Property Portfolio X 124.39 124.39 0.32 3.28 Asia ex-Japan A1 $ 20.61 - 0.14 0.00 Extra Income 76.10 80.53 0.54 4.55 www.mirabaud.com, marketing@mirabaud.com
UK £ 6.1530 - 0.0130 1.61
Regulated
Eq Market Neutral B Acc 1024.28 - -0.29 -
Bond A1 $ 10.28 - 0.00 0.00 Far East Growth A Inc 150.52 150.52 1.71 2.50 Mir. Conv. Bds Eur A EUR € 131.36 - -0.57 0.00
Lloyds Gilt Fund Limited
Eq Market Neutral Plus B Acc 1040.11 - -0.59 - Lloyds Gilt Fund Quarterly Share £ 1.2910xd - 0.0070 1.81
M & G (Guernsey) Ltd (GSY) China Equity Fd A1 $ 9.28 - -0.01 0.00 Global 171.30 180.29 -0.84 0.00 Mir. Conv. Bds Glb A USD $ 108.46 - -0.19 0.00
Regulated
High Yield Global Bond A GBP Inc 508.02 - -1.23 5.47 Monthly Share £ 1.2440 - 0.0070 1.81
The M&G Offshore Fund Range Continental European Eqty A1 € 16.24 - -0.22 0.00 Global Bond Inc 138.18 146.22 0.32 3.15 Mir. - Eq Asia ex Jap A $ 158.14 - 3.58 0.00
Corporate Bond 1301.72 1341.98 5.00 3.20
High Yield Global Bond B GBP Inc 1056.13 - -2.55 5.47 Lloyds Money Fund Limited
Emer Mkts Debt Lo Curr Fd A1 $ 10.48 - 0.11 0.00 High Yield Fixed Interest 71.22 75.56 0.12 5.84 Mir. - Eq Glb Emrg Mkt A USD $ 79.50 - 1.73 0.00
Sterling Class £ 52.6220 - 0.0000 0.10
Global Basics 2203.78 2271.94 14.71 0.34
Investment Grade Global Bd A GBP Inc 551.69 - 0.63 2.49
Emerging Markets Debt A1 $ 32.22 - 0.12 0.00 Multi Cap Income A Inc 153.23 153.23 1.16 4.59 Mir. - Eq Global Focus A USD $ 92.39 - 0.30 0.00
Lloyds Multi Strategy Fund Limited
Global Leaders 3140.95 3271.82 25.13 1.16
Kames Global Equity Income B GBP Acc 1169.52 - 8.15 - Conservative Strategy £ 1.0890 - 0.0020 1.97
Emerging Markets Eq.A1 $ 9.13 - 0.08 0.00 Nano-Cap Growth A Acc 100.3797 110.6300 0.2787 0.00 Mir. -Eq Spain A € 22.86 - -0.19 0.00
Global High Yield Bond 916.98 945.34 2.54 4.86
Kames Global Equity Income B GBP Inc 1114.84 - 7.77 - Growth Strategy £ 1.4310 - -0.0080 1.32
European Concentrated A1 € 15.91 - -0.07 0.00 Special Situations A Acc 1156.81 1224.14 5.03 0.38 Mir. - Eq Swiss Sm/Mid A SFr 319.43 - -2.21 0.00
Global Macro Bond Fund 11470.78 11825.55 16.47 1.97
Strategic Global Bond A GBP Inc 1079.54 - 0.35 0.77 Aggressive Strategy £ 1.7120 - -0.0170 0.00
European Core Eq A1 € 29.00 - -0.14 0.00 UK Multi-Cap Growth A Inc 239.89 253.85 1.46 0.66 Mir. - Glb High Yield Bds A $ 105.19 - 0.24 -
North American Dividend Fund 151.16 157.46 0.45 2.43
Strategic Global Bond B GBP Inc 613.07 - 0.20 1.27 Global USD Growth Strategy $ 1.2600 - 0.0000 0.00
European Res.A1 € 29.86 - -0.16 0.00 UK Micro Cap Growth A 462.22 489.12 2.24 0.00 Mir. - Glb Eq High Income A USD $ 92.37 - -0.29 0.00
Optimal Income Fund 137.85 142.12 0.10 2.82
Dealing Daily
European Smaller Companies A1 € 48.60 - -0.14 0.00 US Multi-Cap Income 316.11 316.11 1.33 0.64 Mir. - Glb Inv Grade Bds A € 99.89 - 0.21 -
Recovery Fund Limited 'A' Participating Shares 9144.48 9525.50 62.63 0.56
Kleinwort Benson Bank (UK)
European Value A1 € 34.15 - -0.12 0.00 MFM - Third Party Funds Mir. - Glb Strat. Bd A USD $ 102.76 - 0.14 0.00
14 St. George Street, Mayfair, London W1S1FE Lohengrin Management Ltd (BAH)
Recovery Fund Limited 'I' Participating Shares 9128.69 9220.89 63.85 1.45 Junior Oils 55.95 59.21 2.47 0.00
Dealing and enquiries: 0800 024 2400 Lohengrin@genesisfundservices.com Tel: 242-502-7020
Global Conc.A1 $ 33.62 - -0.20 0.00 Mir. Opp.- Activ.Strategies I $ 96.54 - -2.32 0.00
Authorised Inv Funds Other International Funds Strategic Corporate Bond Fund 131.21 136.67 0.37 3.10 Junior Gold C Acc 19.13 19.13 -0.41 0.00
Unit Trust Manager/ACD - Host Capital Lohengrin Fund Ltd - Class C € 58.07 - 24.93 0.00 Global Credit Fund $ 10.16 - 0.04 0.00 Mir. Opp. -Emerg. Mkt HO $ 102.32 - 0.00 0.00
HC KB Capital Growth A Acc 166.25 - 1.51 1.36
UK Select 1407.98 1466.64 11.53 1.01 MFM Artorius Fund 153.02 153.02 0.11 0.30
Global Energy Fund A1 $ 11.36 - 0.26 0.00 MirAlt Sicav-Diversified A Cap. $ 107.01 - -0.82 0.00
HC KB Capital Growth A Inc 155.67 - 1.41 1.38
MFM Bowland 158.22 171.05 0.35 0.00
Lothbury Property Trust (UK) Global Equity A1 $ 41.51 - -0.12 0.00 MirAlt Sicav-Europe A dis € 73.26 - -0.40 0.00
HC KB Enterprise Equity Income A Inc 103.04 - 0.55 3.06 155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900
MFM Hathaway Inc 103.33 108.20 3.47 1.94
Property & Other UK Unit Trusts Global Equity A1 € 24.17 - -0.04 0.00 MirAlt Sicav - North America A dis $ 152.79 - -2.99 0.00
HC KB Enterprise Equity Income A Acc 153.08 - 0.81 3.69 Lothbury Property Trust GBP £ 1802.73 1933.97 16.21 3.09
MFM SGWM Managed A Acc 122.50 122.50 0.11 0.16
Global High Yield Fund $ 23.30 - 0.04 0.00
HC KB Endeavour Multi Asset Balanced A Acc 128.08 - 0.34 0.81
MFM Techinvest Special Situations Acc 137.84 137.84 1.40 0.00
HC KB Endeavour Multi Asset Balanced A Inc 121.73 - 0.33 0.81
Global High Yield Fund € 15.59 - 0.05 0.00 MW Japan Fund Plc (IRL)
MFM Techinvest Technology Acc 332.67 332.67 10.75 0.00 FCA Recognised
Majedie Asset Management LTD (UK)
Global Multi-Asset A1 $ 14.33 - 0.04 0.00 MW Japan Fund PLC A $ 23.78 - 0.16 -
HC KB Enterprise Fixed Income A Acc 122.76 - 0.23 3.44 www.majedie.com
Authorised Inv Funds MFM UK Primary Opportunities A Inc 318.75 318.75 2.38 1.38
Global Res.A1 $ 23.34 - 0.07 0.00 MW Japan Fund PLC B $ 23.96 - 0.17 -
HC KB Enterprise Fixed Income A Inc 108.97 - 0.21 3.44 Global Equity X Acc GBP £ 1.08 - 0.01 0.59
Slater Investments Ltd - Investment Adviser
Global Total Return A1 € 17.13 - 0.07 0.00 MFM Slater Growth 405.48 430.22 1.28 0.11 MW Japan Fund PLC C $ 91.97 - 2.19 -
Global Focus X Acc GBP £ 1.11 - 0.00 0.47
M & G Securities (1200)F (UK)
PO Box 9039, Chelmsford, CM99 2XG Inflation-Adjusted Bond A1 $ 13.88 - 0.03 0.00 MFM Slater Income A Inc 154.28 154.28 0.80 4.09
UK Equity X Acc 132.97 - 1.26 2.86
www.mandg.co.uk Enq: 0800 390 390, Dealing: 0800 328 3196
Authorised Inv Funds Japan Equity A1 $ 9.55 - -0.02 0.00 MFM Slater Recovery 175.22 185.91 1.16 0.24 Morant Wright Funds (Ireland) PLC (IRL)
UK Focus X Acc 146.17 - 2.08 1.98
Charifund Inc 1384.07 - 13.65 5.00 FCA Recognised
Latin American Equity Fd A1 $ 9.94 - 0.14 0.00 Morant Wright Fuji Yield EUR Dist Hedged € 10.32 - 0.16 -
UK Income X Inc 139.74 - 2.00 4.95
Charifund Acc 19103.71 - 188.45 4.84
Limited Maturity A1 $ 13.99 - 0.00 0.00 Morant Wright Fuji Yield GBP Acc Hedged £ 10.69 - 0.16 0.00
UK Smaller Companies A Acc 249.79 - 1.72 1.80
M&G Corporate Bond A Acc 62.63xd - 0.24 3.18
Prudent Wealth Fd A1 $ 14.51 - 0.04 0.00 Morant Wright Fuji Yield GBP Dist Hedged £ 10.39 - 0.16 -
M&G Corporate Bond A Inc 39.10xd - 0.15 3.18

Asset Management
Asset Management Asset Management
FINANCIAL TIMES Monday 1 February 2016 FTfm | 17

FTfm

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

Morant Wright Fuji Yield USD Acc Hedged $ 10.42 - 0.16 0.00 Swiss Select Equity Inst Acc SFr 111.33 - -0.79 0.00 Pictet-ST.MoneyMkt-IUSD $ 135.39 - 0.02 0.00

Morant Wright Fuji Yield USD Dist Hedged $ 10.45 - 0.16 2.14 Natixis International Funds (UK) Swiss Select Equity Ord Acc SFr 109.98 - -0.79 0.00 Odey Asset Management LLP (IRL) Pictet-Timber-I USD F $ 126.13 - -0.58 0.00
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000 FCA Recognised
Morant Wright Fuji Yield YEN Acc ¥ 1076.76 - 17.41 0.00 Authorised Funds US Growth USD Ord Acc $ 183.77 - 1.92 0.00 Odey Pan European EUR R € 318.03 - -3.99 0.00 Pictet Total Ret-Agora I EUR € 116.64 - -0.18 0.00
H2O MultiReturns Fund N/A (GBP) £ 1.33 - -0.01 1.46
Morant Wright Fuji Yield B YEN Acc ¥ 950.26 - 16.90 - US Growth EUR Ord Acc € 175.48 - 1.81 0.00 Odey Absolute Return Focus Fund $ 100.00 - - - Pictet Total Ret-Corto Europe I EUR € 134.29 - -0.62 0.00
Harris Associates Global Concentrated Equity Fund N/A (GBP) £ 0.99 - 0.01 0.00
Morant Wright Fuji Yield YEN Dist ¥ 1054.42 - 17.05 2.13 US Growth GBP Ord Acc £ 184.35 - 1.93 0.00 Odey Allegra European EUR O € 251.14 - -3.28 0.00 Pictet Total Ret-Divers Alpha I EUR € 105.28 - 0.02 0.00
Pictet Asset Management (Europe) SA (LUX)
Loomis Sayles Strategic Income N/D (GBP) £ 0.94 - 0.00 4.31 15, Avenue J.F. Kennedy L-1855 Luxembourg
Morant Wright Sakura Fund Sterling Acc Hedged £ 13.18 - 0.33 0.00 US Growth USD Inst Acc $ 169.91 - 1.78 0.00 Odey Allegra International EUR O € 165.59 - -2.20 0.00 Pictet Total Ret-Kosmos I EUR € 108.54 - -0.20 0.00
Tel: 0041 58 323 3000
Loomis Sayles Strategic Income H-N/D (GBP) £ 0.85 - 0.00 4.47 FCA Recognised
Morant Wright Sakura Fund Euro Acc Hedged € 13.17 - 0.33 0.00 Wealthy Nat Bd EUR Inst Inc € 104.53 - 0.36 3.83 Odey Allegra Developed Markets USD I $ 114.59 - 0.40 0.00 Pictet Total Ret-Mandarin I USD $ 110.91 - -0.41 0.00
Pictet-Absl Rtn Fix Inc-HI EUR € 106.09 - 0.00 0.00
Loomis Sayles US Equity Leaders N/A (GBP) £ 1.46 - 0.02 0.25
Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1349.65 - 35.30 0.00 Wealthy Nat Bd GBP Inst Inc £ 108.66 - 0.38 3.66 Odey European Focus Fund € 17.06 - -0.17 0.50 Pictet-US Equity Selection-I USD $ 173.89 - 0.57 0.00
Pictet-Absl Rtn Glo Div-I EUR F € 122.02 - -0.11 0.00
Seeyond Factor Plus Europe Ex U.K Equity Fund N/A (GBP) £ 0.96 - 0.00 -
Morant Wright Sakura Fund Dollar Acc Hedged $ 13.12 - 0.32 0.00 Wealthy Nat Bd EUR Ord Inc € 103.87 - 0.36 3.59 Odey Atlas Fund GBP I S £ 1.12 - -0.01 0.00 Pictet-US High Yield-I USD F $ 141.95 - 0.31 0.00
Pictet-Agriculture-I EUR F € 169.70 - 0.90 0.00
Seeyond Factor Plus U.K Equity Fund N/A (GBP) £ 0.95 - 0.01 -
Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 13.03 - 0.33 0.00 Wealthy Nat Bd GBP Ord Inc £ 109.29 - 0.37 3.39 Odey Giano European Fund EUR R € 120.39 - -0.46 0.00 Pictet-USA Index-I USD F $ 167.46 - 0.93 0.00
Pictet-Asian Equities Ex Japan-I USD F $ 185.40 - 3.18 0.00

Wealthy Nat Bd USD Ord Inc $ 106.54 - 0.39 3.37 Odey Naver Fund EUR I € 127.28 - -0.33 0.00 Pictet-USD Government Bonds-I F $ 644.72 - 0.46 0.00
Pictet-Asian Local Currency Debt-I USD F $ 151.49 - 0.92 0.00
NatWest (2230)F (UK)
PO Box 23873, Edinburgh EH7 5WJ** New Capital Alternative Strategies Odey Odyssey USD I $ 132.21 - -0.12 0.00 Pictet-USD Short Mid-Term Bonds-I F $ 130.01 - 0.00 0.00
Pictet-Biotech-I USD F $ 652.07 - -27.74 0.00
Enquiries: 0800 085 5588 All Weather Fd USD Cls $ 117.83 - -0.64 0.00
Authorised Inv Funds Odey Orion Fund EUR I € 117.05 - 0.09 0.00 Pictet-USD Sov.ST.Mon.Mkt-I $ 102.70 - 0.01 0.00
Pictet-Brazil Index I USD $ 29.92 - 0.14 0.00
Series 1(Minimum initial investment 16375,000) All Weather Fd EUR Cls € 105.67 - -0.67 0.00
United Kingdom Equity Index Fund £ 11.67 - -0.11 3.08 Odey Swan Fund EUR I € 101.37 - -1.91 0.00 Pictet-Water-I EUR F € 265.14 - -1.29 0.00
Pictet-CHF Bonds I CHF SFr 507.42 - 0.44 0.00
All Weather Fd GBP Cls £ 113.91 - -0.67 0.00
UK Specialist Equity Inc £ 18.17 - 0.01 0.42 Odey European Absolute Return GBP S £ 99.30 - -1.23 0.00
Morgan Stanley Investment Funds (LUX) Pictet-China Index I USD $ 88.87 - 0.37 0.00
Tactical Opps USD Cls $ 115.54 - 3.20 0.00
6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61
www.morganstanleyinvestmentfunds.com Contl Europe Spec Equity £ 15.28 - -0.08 0.00 Pictet-Clean Energy-I USD F $ 69.75 - 0.09 0.00 Pimco Fds: Global Investors Series Plc (IRL)
Tactical Opps EUR Cls € 96.53 - 2.64 0.00 PIMCO Europe Ltd,11 Baker Street,London W1U 3AH
FCA Recognised
US Advantage A F $ 53.99 - 0.54 0.00 US Spec Equity Fund £ 13.30 - -0.12 0.00 Odey Wealth Management (CI) Ltd (IRL) Pictet-Digital Communication-I USD F $ 238.35 - 2.92 0.00
http://gisnav.pimco-funds.com/
Tactical Opps GBP Cls £ 108.13 - 2.90 0.00 www.odey.com/prices Dealing: +44 20 3640 1000
Japan Specialist Fund £ 9.57 - -0.04 0.00 FCA Recognised PIMCO Funds: +44 (0)20 3640 1407
Asian Equity A F $ 36.77 - 0.14 0.00 Pictet-Eastern Europe-I EUR F € 241.13 - 2.05 0.00
Odey Opportunity EUR I € 209.91 - -0.30 0.00 FCA Recognised
Asian Property A F $ 15.79 - 0.03 0.00 Pacific Basin Specialist Equity Fund £ 20.66 - 0.33 0.97 Pictet-Em Lcl Ccy Dbt-I USD F $ 149.92 - 1.47 0.00 Capital Securities Inst Acc $ 14.60 - 0.01 0.00

Asian Property AX F £ 10.78 - -0.01 0.54 UK Sovereign Bd Index Fund £ 11.10 - 0.03 2.53 Pictet-Emerging Markets-I USD F $ 422.02 - 10.57 0.00 Commodity Real Return Fund Inst Acc $ 5.52 - 0.01 0.00
Omnia Fund Ltd
Diversified Alpha Plus A F € 29.51 - -0.02 0.00 UK Specialist Equity Income Fund £ 9.00 - 0.03 4.30 Other International Funds Pictet-Emerging Markets Index-I USD F $ 187.72 - 1.63 0.00 Credit Absolute Return Fund Inst Acc $ 10.82 - -0.02 0.00
Estimated NAV $ 833.84 - -21.78 0.00
Emerg Europ, Mid-East & Africa Eq A F € 59.24 - 0.98 0.00 Global Spec Inv Grade Bd Fund GBP £ 9.78 - 0.03 3.03 Pictet-Emerging Corporate Bonds I USD $ 104.61 - 0.36 0.00 Diversified Income - Inst Acc $ 18.88 - 0.04 0.00
Northwest Investment Management (HK) Ltd
Emerging Markets Debt A F $ 72.85 - 0.33 0.00 Global Emerg Mkts Equity Fund £ 10.40 - 0.12 0.08 11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373 Pictet-Emerging Markets High Dividend I USD $ 83.58 - 2.01 0.00 Diversified Income Durat Hdg Fund Inst Acc $ 10.88 - 0.02 0.00
Other International Funds
Emerging Markets Domestic Debt AX F £ 10.34 - 0.07 5.66 Series 2 (Investment Management customers only) Pictet-Emerging Markets Sust Eq I USD $ 76.30 - 0.67 0.00 Emerging Asia Bond Fund Inst Acc $ 9.30 - 0.06 0.00
Northwest $ class $ 2329.36 - -28.58 0.00
United Kingdom Equity Index Fund £ 11.68 - -0.10 3.76
Emerging Markets Equity A F $ 29.62 - 0.27 0.00 Pictet-Environmental Megatrend Sel I EUR € 147.64 - -1.43 0.00 Emerging Local Bond - Inst Acc $ 10.32 - 0.11 0.00
Northwest Warrant $ class $ 1969.35 - -444.40 0.00
UK Specialist Equity Inc £ 18.38 - 0.00 1.68
Euro Bond A F € 15.82 - 0.07 0.00 Pictet-EUR Bonds-I F € 559.19 - 0.82 0.00 Emerging Markets Bond - Inst Acc $ 36.60 - 0.19 0.00
Contl Europe Spec Equity £ 15.97 - -0.08 1.23
Optima Fund Management Emerging Markets Corp.Bd Fund Inst Acc F $ 12.27 - 0.03 0.00
Euro Corporate Bond AX F £ 22.29 - 0.08 1.54 Other International Funds Pictet-EUR Corporate Bonds Ex Fin i EUR € 142.64 - 0.41 0.00
US Spec Equity Fund £ 13.90 - -0.13 0.39
Cuttyhunk Fund II Limited $ 1350.67 - 22.88 0.00
Euro Strategic Bond A F € 43.35 - 0.18 0.00 Pictet-EUR Corporate Bonds-I F € 199.09 - 0.51 0.00 Emerging Markets Short-Term Local Currency Fund $ 11.34 - 0.07 0.00
Japan Specialist Fund £ 10.16 - -0.04 0.67
JENOP Global Healthcare Fund Ltd $ 14.76 - -0.27 0.00
European Currencies High Yield Bd A F € 21.02 - 0.07 0.00 Pictet-EUR Government Bonds I EUR € 159.95 - 0.21 0.00 Euro Bond - Inst Acc € 22.78 - 0.03 0.00
Pacific Basin Specialist Equity Fund £ 20.48 - 0.33 2.01
OPTIKA Fund Limited - Cl A $ 94.86 - -2.67 -
European Equity Alpha A F € 39.17 - -0.13 0.00 Pictet-EUR High Yield-I F € 236.27 - -0.57 0.00 Euro Credit - Inst Acc € 14.72 - 0.02 0.00
UK Sovereign Bd Index Fund £ 11.29 - 0.02 2.53 Oasis Crescent Management Company Ltd
Other International Funds Optima Fd NAV (Est) $ 85.69 - 0.23 0.00
European Property A F € 32.99 - 0.08 0.00 Pictet-EUR Short Mid-Term Bonds-I F € 137.04 - -0.01 0.00 Euro Income Bond - Inst Acc F € 12.78 - 0.02 0.00
UK Specialist Equity Income Fund £ 9.77 - 0.03 4.25 Oasis Crescent Equity Fund R 9.16 - -0.04 0.00
Optima Discretionary Macro Fund Limited $ 87.21 - -1.06 0.00
Eurozone Equity Alpha A F € 10.55 - -0.05 0.00 Pictet-EUR Short Term HY I EUR € 118.65 - 0.25 0.00 Euro Long Average Duration - Inst Acc € 22.28 - 0.16 0.00
Global Spec Inv Grade Bd Fund GBP £ 9.95 - 0.03 3.03
The Dorset Energy Fd Ltd NAV $ 20.39 - 1.97 0.00
Global Bond A F $ 37.97 - 0.07 0.00 Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.92 - -0.01 0.00 Euro Low Duration Fund Inst Acc € 11.23 - 0.00 0.00
Global Emerg Mkts Equity Fund £ 10.00 - 0.12 0.95 Oasis Global Mgmt Co (Ireland) Ltd (IRL)
Regulated Platinum Fd Ltd $ 78.42 - -3.04 0.00
Global Brands A F $ 95.30 - 0.17 0.00 Pictet-Euroland Index IS EUR € 120.68 - -2.51 0.00 Euro Real Return - Inst Acc € 13.39 - 0.04 0.00
The initial charge you will pay will depend on the amount you invest Oasis Global Investment (Ireland) Plc
Platinum Fd Ltd EUR € 15.20 - -0.59 0.00
**Address and Telephone number for series 1 only Oasis Crescent Global Short Term Income Fund $ 0.98 - 0.00 0.86 Euro Short-Term Inst Acc € 12.23 - 0.00 0.00
Global Convertible Bond A F $ 39.89 - -0.19 0.00 Pictet-Europe Index-I EUR F € 155.75 - -2.46 0.00

Oasis Global Equity $ 25.32 - 0.03 0.23 Platinum Japan Fd Ltd $ 50.95 - -1.11 0.00
Global Property A F $ 25.69 - 0.07 0.00 Pictet-European Equity Selection-I EUR F € 579.25 - -4.73 0.00 Euro Ultra Long Duration - Inst Acc € 29.79 - 0.42 0.00

Optima Partners Global Fd (Est) $ 13.52 - 0.04 0.00

Oasis Crescent Global Investment Fund (Ireland) plc Global Advantage - Inst Acc $ 11.89 - 0.05 0.00
Indian Equity A F $ 31.30 - -0.04 0.00 Pictet-European Sust Eq-I EUR F € 230.61 - -3.42 0.00
Oasis Crescent Global Equity Fund $ 25.80 - 0.03 0.00
Optima Partners Focus Fund A $ 15.38 - -0.26 0.00
Latin American Equity A F $ 32.60 - 0.66 0.00 Pictet-Global Bds Fundamental I USD $ 116.62 - 0.69 0.00 Global Advantage Real Return Fund Inst Acc $ 8.21 - 0.06 0.00
Oasis Crescent Variable Balanced Fund £ 10.15 - -0.03 0.59
Short Maturity Euro Bond A F € 20.33 - 0.00 0.00 Pictet-Global Bonds-I EUR € 166.58 - -0.10 0.00 Global Bond - Inst Acc $ 27.95 - 0.03 0.00
OasisCresGl Income Class A $ 10.69 - 0.04 2.42
New Capital Fund Management Ltd (IRL) Oryx International Growth Fund Ltd Global Bond Ex-US - Inst Acc $ 19.64 - 0.01 0.00
US Dollar Liquidity A F $ 13.03 - 0.00 0.00 Leconfield House, Curzon Street, London, W1J 5JB Other International Funds Pictet-Global Emerging Currencies-I USD F $ 94.47 - 0.58 0.00
OasisCresGl LowBal D ($) Dist $ 11.15 - 0.04 0.00
FCA Recognised NAV (Fully Diluted) £ 7.21 - 0.28 0.00
US Growth A F $ 61.06 - -0.17 0.00 Pictet-Global Emerging Debt-I USD F $ 350.87 - -0.32 0.00 Global High Yield Bond - Inst Acc $ 19.39 - 0.05 0.00
New Capital UCITS Funds
OasisCresGl Med Eq Bal A ($) Dist $ 11.26 - 0.03 0.33
Asia Pac Bd USD Inst Inc $ 90.09 - -0.09 3.27
US Growth AH F € 42.27 - -0.12 0.00 Pictet-Global Megatrend Selection-I USD F $ 200.98 - -0.35 0.00 Global Investment Grade Credit - Inst Income $ 11.99 - 0.02 3.84
Oasis Crescent Gbl Property Eqty $ 8.91 - 0.03 2.07
Asia Pac Bd USD Ord Inc $ 92.05 - -0.10 2.53 OTP Asset Management Romania SAI SA ((ROM)) Global Investment Grade Credit Fund Inst Acc € € 11.64 - -0.03 0.00
US Growth AX F £ 42.56 - -0.27 0.00 www.otpfonduri.ro Pictet-Greater China-I USD F $ 394.22 - 9.91 0.00
Asia Pac Eq EUR Ord Inc € 75.40 - 0.39 3.42 Other International Funds
US Property A F $ 66.23 - -0.03 0.00 Pictet-Health-I USD $ 241.68 - -6.05 0.00 Global Investment Grade Credit Fund Inst Acc $ $ 16.56 - 0.02 0.00
OTP Comodisro RON 16.89 - 0.00 -
Asia Pac Eq GBP Ord Inc £ 77.92 - 0.40 3.86
Pictet-High Dividend Sel I EUR F € 148.05 - -0.28 0.00 Global Multi-Asset - Inst Acc $ 13.44 - 0.01 0.00
OTP Obligatiuni RON 14.30 - 0.00 -
Asia Pac Eq USD Ord Inc $ 78.84 - 0.43 3.24
Global Real Return - Inst Acc $ 17.97 - 0.05 0.00
Morgens Waterfall Vintiadis.co Inc OTP Avantisro RON 7.91 - 0.03 - Pictet-India Index I USD $ 87.46 - -0.22 0.00
Other International Funds Asia Pac Eq USD Inst Acc $ 84.86 - 0.45 0.00
Pictet-Indian Equities-I USD F $ 410.23 - 7.33 0.00 Income Fund Inst Acc $ 12.25 - 0.01 0.00
Phaeton Intl (BVI) Ltd (Est) $ 376.84 - 7.44 0.00 OTP Euro Bond € 12.42 - 0.00 -
Asia Pac Eq USD Inst Inc $ 87.89 - 0.48 3.97 Odey Asset Management LLP (UK)
40 Dukes Place, London, EC3A 7NH Pictet-Japan Index-I JPY F ¥ 15080.70 - 430.17 0.00 Inflation Strategy Fund Inst Acc $ 8.38 - 0.00 0.00
OTP Dollar Bond $ 10.59 - 0.01 -
Dyn Europ Eq EUR Ord Inc € 163.48 - -2.49 1.33 Order Desk and Enquiries: 0345 300 2106
Pictet-Japanese Equities Opp-I JPY F ¥ 8987.41 - 253.33 0.00 Low Average Duration - Inst Acc $ 14.78 - 0.01 0.00
Authorised Corporate Director - Capita Financial Managers OTP Premium Return RON 1056.29 - 3.99 -
Dyn Europ Eq GBP Ord Inc £ 173.28 - -2.64 1.69 Authorised Inv Funds
Pictet-Japanese Equity Selection-I JPY F ¥ 13267.08 - 362.03 0.00 PIMCO RAE Fundam.PLUS Em.Mkts Inst Acc $ 7.14 - 0.11 0.00
CF Odey Continental European GBP R Acc 722.93 - 4.58 0.03
Dyn Europ Eq USD Ord Inc $ 163.24 - -2.48 1.25
Pictet-LATAM Index I USD $ 42.94 - 0.51 0.00 PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 9.73 - 0.04 0.00
CF Odey Opus GBP R Inc 3686.09 - 11.49 0.00
China Equity EUR Ord Acc € 110.13 - -0.52 0.00
Pictet-LATAM Lc Ccy Dbt-I USD F $ 102.34 - 1.05 0.00 PIMCO RAE Fundam.PLUS US Inst Acc $ 11.16 - 0.06 0.00
CF Odey Absolute Return GBP R 309.81 - 0.61 0.00
Natixis International Funds (Lux) I SICAV (LUX)
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000 China Equity GBP Ord Acc £ 114.53 - -0.44 0.00
Pictet-Pacific Ex Japan Index-I USD F $ 297.38 - 3.09 0.00 Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.28 - 0.04 0.00
CF Odey Portfolio Fund GBP R Inc 144.43 - 1.07 0.07
FCA Recognised
Harris Global Equity R/A (USD) $ 223.91 223.91 -1.67 0.00 China Equity USD Ord Acc $ 112.13 - -0.52 0.00
Pictet-Premium Brands-I EUR F € 141.45 - -0.95 0.00 StocksPLUS{TM} - Inst Acc $ 21.23 - 0.07 0.00
Permal Investment Mgmt Svcs Ltd
Harris US Equity Fund R/A (USD) $ 183.73 183.73 1.19 0.00 China Equity USD Inst Acc $ 115.43 - -0.53 0.00
www.permal.com Total Return Bond - Inst Acc $ 27.18 - 0.03 0.00
Odey Asset Management LLP (CYM) Pictet-Quality Global Equities I USD $ 128.01 - 1.03 0.00
Regulated Other International Funds
Harris Concentrated US Equity R/A (USD) $ 138.48 138.48 0.26 0.00 Europ. Equity Fd EUR € 97.45 - -1.48 -
Offshore Fund Class A US $ Shares Pictet-Russia Index I USD $ 43.85 - 1.63 0.00 UK Corporate Bond - Inst Acc £ 17.16 - 0.03 0.00
OEI Mac Inc GBP A £ 409.98 - 51.79 0.00
Investment Holdings N.V. $ 5417.00 - -70.68 0.00
Loomis Sayles Strategic Alpha R/A (USD) $ 108.24 108.24 0.14 - Europ. Equity Fd GBP £ 96.03 - -1.46 -
Pictet-Russian Equities-I USD F $ 38.28 - 1.05 0.00 UK Long Term Corp. Bnd Inst-Inst Acc £ 19.04 - 0.04 0.00
OEI Mac Inc GBP B £ 236.17 - 34.38 0.00
Macro Holdings Ltd $ 4176.78 - -15.24 0.00
Europ. Equity Fd USD $ 96.30 - -1.46 -
Pictet-Security-I USD F $ 185.14 - -1.36 0.00 UK Low Duration - Inst Acc £ 14.04 - 0.01 0.00
OEI MAC Inc USD $ 2188.18 - 273.75 0.00
Fixed Income Holdings N.V. $ 349.32 - -14.81 -
Natixis International Funds (Dublin) I plc (IRL) Global Val.Cr.Fd GBP Ord Inc £ 106.79 - 0.11 3.63
Pictet-Select-Callisto I EUR € 104.09 - 0.35 0.00 UK Real Return - Inst Acc £ 22.94 - -0.04 0.00
Odey European Inc EUR € 943.66 - 106.51 0.00
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000 Permal Absolute Return Fund $ 163.19 - -0.40 0.00
Regulated Global Val.Cr.Fd USD Inst Acc $ 120.31 - 0.16 0.00
Pictet-Small Cap Europe-I EUR F € 1045.75 - -13.10 0.00 UK Sterling Long Average Duration - Inst Acc £ 22.21 - 0.10 0.00
Odey European Inc GBP A £ 363.95 - 41.44 0.00
Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.23 12.23 0.04 1.22
Global Val.Cr.Fd GBP Ord Acc £ 173.26 - 0.21 0.00
Pictet-ST.MoneyMkt-I € 140.44 - 0.00 0.00 Unconstrained Bond - Inst Acc $ 11.70 - 0.02 0.00
Odey European Inc GBP B £ 206.55 - 23.52 0.00
Loomis Sayles High Income R/D (USD) $ 7.07 7.07 0.00 15.55
Global Val.Cr.Fd USD Ord Acc $ 162.69 - 0.20 0.00
Pictet-ST.MoneyMkt JPY I USD ¥ 101505.59 - 8.11 0.00 US High Yield Bond Fund Inst Acc $ 26.57 - 0.08 0.00
Odey European Inc USD $ 436.39 - 49.24 0.00
Loomis Sayles Multisector Income R/D (GBP) $ 11.16 11.16 0.02 5.93
Global Val.Cr.Fd EUR Ord Acc € 151.22 - 0.17 0.00
Giano Capital EUR Inc € 4652.16 - 195.57 0.00 Pictet-ST.MoneyMkt-ICHF SFr 124.10 - -0.01 0.00
18 | FTfm FINANCIAL TIMES Monday 1 February 2016

FTfm

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

Pacific Basin Specialist Equity Fund £ 36.44 - 0.59 0.95 SWMC Small Cap European Fund B EUR € 12583.04 - -43.86 0.00 Max 50% Shs Port Acc Ret 240.80 - 0.90 -

Putnam Investments (Ireland) Ltd (IRL) UK Sovereign Bd Index Fund £ 10.88 - 0.03 2.53 SWMC Emerging European Fund B EUR € 8313.99 - 48.05 0.00 Max 50% Shs Port Inc Ret 213.60 - 0.80 - Schroder Property Managers (Jersey) Ltd
Regulated Other International Funds
Putnam New Flag Euro High Yield Plc - E € 977.84 - 1.51 4.30 UK Specialist Equity Income Fund £ 8.98 - 0.03 4.30 Max 50% Shs Port Acc X 174.30 - 0.70 - Indirect Real Estate SIRE £ 134.51 140.66 1.17 2.78

Global Emerg Mkts Equity Fund £ 10.05 - 0.12 0.08 Max 50% Shs Port Acc S 145.90 - 0.50 -

Global Spec Inv Grade Bd Fund GBP £ 9.62 - 0.02 3.03 Max 100% Shs Port Acc Ret 270.90 - 0.40 - Scottish Friendly Asset Managers Ltd (UK)
Platinum Capital Management Ltd
Other International Funds Scottish Friendly Hse, 16 Blythswood Sq, Glasgow G2 4HJ 0141 275 5000
Series 6 (Investment Management Customers Only) Max 100% Shs Port Acc X 194.50 - 0.30 - Authorised Inv Funds
Platinum All Star Fund - A $ 116.86 - - -
United Kingdom Equity Index Fund £ 14.42 - -0.13 3.76 Managed Growth 235.60 - 2.20 0.00
Max 100% Shs Port Acc S 141.90 - 0.20 -
Platinum Global Dividend Fund - A $ 54.29 - - - RobecoSAM (LUX)
UK Specialist Equity £ 18.39 - 0.00 1.68 UK Growth 255.50 - 2.70 0.00
Tel. +41 44 653 10 10 http://www.robecosam.com/
Enhanced Inc Inc Ins 202.80 - 2.20 -
Platinum Maverick Enhanced Fund Limited $ 93.55 - - 0.00 Ram Active Investments SA Regulated
Contl Europe Specialist Fund £ 23.37 - -0.12 1.23
www.ram-ai.com RobecoSAM Sm.Energy/A £ 10.94 - -0.04 1.61
Enhanced Inc Inc Ret 191.10 - 2.20 -
Other International Funds
Japan Specialist Fund £ 15.26 - -0.06 0.67 SIA (SIA Funds AG) (LUX)
RAM Systematic Emerg Markets Core Eq $ 71.46 - 0.24 - RobecoSAM Sm.Energy/N € 10.91 - 0.00 0.00
Enhanced Inc Inc X 162.60 - 1.80 - Regulated
US Spec Equity Fund £ 18.82 - -0.17 0.39 LTIF Classic € 299.85 - -2.57 0.00
RAM Systematic Emerg Markets Eq $ 130.71 - 0.89 - RobecoSAM Sm.Materials/A £ 112.10 - -1.53 1.43
Enhanced Inc Acc Inst 152.60 - 1.70 -
Pacific Basin Specialist Equity Fund £ 36.13 - 0.58 2.01 LTIF Natural Resources € 64.48 - 0.85 0.00
RAM Systematic European Eq € 354.68 - -4.58 - RobecoSAM Sm.Materials/N € 127.11 - -1.35 0.00
Managed Investments OEIC
UK Sovereign Bd Index Fund £ 11.01 - 0.02 2.53 Max 30% Shs Port Acc Ret 153.20 - 0.60 - LTIF Stability A ACCU € 154.95 - -1.16 0.00
RAM Systematic Global Shareholder Yield Eq $ 93.94 - 0.36 0.00 RobecoSAM Sm.Materials/Na € 87.73 - -0.93 -

Polar Capital Funds Plc (IRL) UK Specialist Equity Income Fund £ 9.77 - 0.03 4.25 Max 30% Shs Port Acc X 153.10 - 0.60 -
RAM Systematic Long/Short Emerg Markets Eq $ 119.10 - 0.17 - RobecoSAM Gl.Small Cap Eq/A £ 72.61 - -1.00 1.28
Regulated
Asian Financials I USD $ 256.25 256.25 6.33 0.00 Global Spec Inv Grade Bd Fund GBP £ 9.92 - 0.02 3.03 Max 30% Shs Port Acc S 147.00 - 0.50 -
RAM Systematic Long/Short European Eq € 144.12 - -0.64 - RobecoSAM Gl.Small Cap Eq/N € 142.57 - -1.54 0.00 SIA (SIA Funds AG) (CH)
Other International Fds
Biotechnology I USD $ 14.74 14.74 -0.53 0.00 Global Emerg Mkts Equity Fund £ 10.00 - 0.12 0.96 Max 30% Shs Inc Port Inc Ret 152.30 - 1.00 -
RAM Systematic North American Eq $ 209.48 - 0.63 - RobecoSAM Sustainable Gl.Eq/B € 165.74 - -1.75 0.00 LTIF Stability Growth SFr 185.70 - 3.40 -

European Income Acc EUR € 10.68 10.68 -0.15 0.00 Address and telephone number for Series 5 only Max 30% Shs Inc Port Inc X 152.40 - 1.00 -
RAM Tactical Convertibles Europe € 139.30 - -0.74 - RobecoSAM Sustainable Gl.Eq/N € 143.15 - -1.52 0.00 LTIF Stability Inc Plus SFr 159.40 - 2.90 0.55

European Ex UK Inc EUR Acc € 9.14 9.14 -0.15 - Max 30% Shs Inc Port Inc S 146.30 - 0.90 -
RAM Tactical Global Bond Total Return € 137.90 - 0.15 - RobecoSAM S.HealthyLiv/B € 168.47 - -1.88 0.00
Royal London Unit Managers Ltd. (1200) F (UK)
Financial Opps I USD $ 10.64 - 0.00 2.17 5th Floor, Churchgate House, 56 Oxford Street, Manchester M1 6EU 03456 057777 Max 60% Shs Port Acc Ret 263.10 - 1.60 -
RAM Tactical II Asia Bond Total Return $ 125.29 - 0.09 - RobecoSAM S.HealthyLiv/N € 157.13 - -1.76 0.00 Smith & Williamson Investment Management (1200)F (UK)
Authorised Inv Funds 25 Moorgate, London, EC2R 6AY 020 7131 8100
GEM Growth I USD $ 7.51 - 0.06 0.00 Royal London Sustainable Diversified A Inc £ 1.55 - 0.01 2.01 Max 60% Shs Port Inc Ret 208.20 - 1.20 -
RobecoSAM S.HealthyLiv/Na £ 104.21 - -1.48 - www.sandwfunds.com
Authorised Inv Funds
GEM Income I USD $ 8.37 - 0.10 0.00 Royal London Sustainable World A Inc 169.60 - 1.60 0.82 Max 60% Shs Port Inc X 161.20 - 1.00 -
Rathbone Unit Trust Mgmt (1200)F (UK) RobecoSAM S.Water/A £ 161.69 - -1.82 1.22 European Equity Fund A Class 497.50 - 0.70 0.72

Global Alpha I USD $ 11.62 11.62 0.02 0.00 PO Box 9948, Chelmsford, CM99 2AG
Royal London Corporate Bond Mth Income 87.82 92.44 0.35 4.21 Max 60% Shs Port Inc S 142.80 - 0.80 - Far Eastern Income and Growth Fund A Class 421.30 - 2.70 3.05
Order Desk: 0845 300 2101, Enquiries: 0207 399 0399 RobecoSAM S.Water/N € 153.21 - -1.26 0.00
Global Convertible I USD $ 10.81 10.81 0.02 0.00 Authorised Inv Funds
Royal London European Growth Trust 108.60 114.30 0.50 0.40 Managed Investments OEIC 2 Fixed Interest Fund A Class 120.90 - 0.70 3.16
Blue Chip Income Inc 146.35 151.16 1.29 4.17
Investments Inc Port Inc Ret 162.20 - 0.90 -
Global Insurance I GBP £ 4.01 - -0.01 0.00 Royal London Sustainable Leaders A Inc 452.60 - 6.90 1.36
Blue Chip Income Acc 220.88 227.89 1.95 4.04 Global Gold and Resources Fund A Class 131.60 - -2.10 0.00
Investments Inc Port Inc X 147.00 - 0.80 -
Global Technology I USD $ 20.71 - 0.06 0.00 Royal London UK Growth Trust 459.30 483.50 4.60 1.45
Ethical Bond Inc 89.65 91.60 0.23 4.72 MM Endurance Balanced Fund A Class 203.00 - 0.00 1.18
£ Gov Bond Inc Inst (gross) 181.40 - 1.30 -
Healthcare Blue Chip Fund I USD Acc $ 9.79 9.79 -0.30 0.00 Royal London UK Income With Growth Trust 216.00 227.40 2.30 4.46
Ethical Bond Acc 171.47 174.85 0.43 4.89 MM Global Investment Fund A Class 1993.00 - 11.00 1.90
£ Gov Bond Inc Inst 149.10 - 1.10 -
Healthcare Opps I USD $ 34.09 - -0.94 0.00 Royal London US Growth Trust 139.60 146.80 0.50 0.00
Global Opportunities Acc 136.79 141.13 0.98 0.11 North American Fund A Class 1632.00 - 5.00 0.00
Santander Asset Management UK Limited (1200)F (UK) £ Gov Bond Acc Inst 151.30 - 1.10 -
Income Opportunities B2 I GBP Acc £ 1.64 1.64 -0.01 0.00 Additional Funds Available 287 St Vincent Street, Glasgow G2 5NB, 0845 6000 181
Income Inc 820.74 849.21 5.59 4.08 Oriental Growth Fund A Class 145.20 - 1.20 0.37
Please see www.royallondon.com for details Authorised Funds Strat Bond Inc Inst (gross) 179.20 - 0.40 -
Japan Alpha I JPY ¥ 192.07 192.07 6.67 0.00 Santander Atlas Range
Income Acc 1277.14 1319.71 8.68 3.96 UK Equity Growth Fund A Class 380.70 - 1.40 0.65
Santander Atlas Inc Port Acc Inst 284.30 - 1.10 - Strat Bond Inc Inst 148.20 - 0.30 -
Japan I JPY ¥ 1886.31 - 57.62 0.00
Multi Asset Enhanced Growth Acc 117.29 - 0.94 0.00 UK Equity Income Fund A Class 215.70 - 1.90 4.82
Santander Atlas Inc Port Inc Inst 217.80 - 0.80 - Strat Bond Acc Inst 150.70 - 0.40 -
North American I USD $ 16.13 16.13 -0.05 0.00
Multi Asset Strategic Growth inc 145.39 - 0.48 1.12 Santander Atlas Port 3 Acc Ret 145.90 - 0.30 - Managed Investments OEIC 3
UK Absolute Equity I GBP £ 12.58 12.58 -0.03 0.00 Div Inc Port Inc Ret 166.20 - 1.80 -
Multi Asset Strategic Growth acc 154.38 - 0.51 1.12 Smith & Williamson Fd Admin Ltd (1200)F (UK)
Santander Atlas Port 3 Inc Ret 100.60 - 0.20 -
25 Moorgate, London, EC2R 6AY 0141 222 1150
Corp Bond Acc Inst (gross) 214.00 - 1.20 - Authorised Inv Funds
Multi Asset Total Return inc 125.52 - 0.34 1.83 Ruffer LLP (1000)F (UK) Santander Atlas Port 3 Acc Inst 160.50 - 0.30 -
40 Dukes Place, London EC3A 7NH S&W Deucalion Fd (OEIC) 1962.00 - 26.00 0.28
Polar Capital LLP (CYM) Corp Bond Inc Inst 141.40 - 0.80 -
Multi Asset Total Return acc 138.89 - 0.39 1.79 Order Desk and Enquiries: 0345 601 9610 Santander Atlas Port 4 Acc Ret 177.20 - 0.40 -
Regulated
Authorised Inv Funds S & W Magnum 369.40 390.40 1.70 1.92
ALVA Convertible A USD $ 128.02 - -0.62 0.00 Corp Bond Acc Inst 145.60 - 0.80 -
Recovery Inc 401.79 417.71 2.25 2.59 Authorised Corporate Director - Capita Financial Managers Santander Atlas Port 4 Inc Ret 126.80 - 0.30 -
CF Ruffer Investment Funds S & W Marathon Trust 178.70 189.10 1.00 1.76
European Conviction A EUR € 144.65 - 3.79 0.00 Multi-Manager OEIC
Recovery Acc 485.54 504.22 2.73 2.54 CF Ruffer Gold Fund C Acc 85.92 - -1.04 0.00 Santander Atlas Port 4 Acc Inst 161.00 - 0.30 - Bal Intl Track Acc Ret 255.30 - 0.50 -
European Forager A EUR € 178.02 - 3.04 0.00
Strategic Bond I-Class Acc 124.19 124.92 0.28 3.95 CF Ruffer Gold Fund O Acc 84.99 - -1.04 0.00 Santander Atlas Port 5 Acc Ret 184.00 - 0.60 - Bond Mthly Inc Acc Ret 143.70 - 0.50 - Standard Life Wealth (JER)
Strategic Bond I-Class Inc 108.09 108.80 0.24 3.91 Equity & General C Acc 361.19 - -0.46 0.06 PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
Santander Atlas Port 5 Acc Inst 156.20 - 0.50 - Bond Mthly Inc Inc Ret 91.79 - 0.27 - FCA Recognised
Polunin Capital Partners Ltd
Equity & General C Inc 333.13 - -0.42 0.06 Standard Life Offshore Strategy Fund Limited
Other International Funds Santander Atlas Port 6 Acc Ret 250.00 - 1.00 -
Bridge Fund £ 1.5591 - 0.0063 1.92
Emerging Markets Active $ 40.75 - 0.67 -
Equity & General O Inc 331.62 - -0.43 0.00 Santander Atlas Port 6 Acc X 178.50 - 0.70 - Santander Asset Management UK Limited (1200)F (UK) Diversified Assets Fund £ 1.1460 - 0.0015 3.04
Luxcellence Em Mkts Tech $ 851.68 - 16.03 0.00 287 St Vincent Street, Glasgow G2 5NB 0845 605 4400
Equity & General O Acc 357.43 - -0.46 0.00 Santander Atlas Port 6 Acc Inst 154.10 - 0.70 - Authorised Inv Funds Global Equity Fund £ 1.8066 - -0.0006 0.65
Polunin Developing Countries $ 648.82 654.33 3.94 0.00 Santander Premium Fund (OEIC)
European C Acc 493.52 - 4.54 0.27 Santander Atlas Port 7 Acc Ret 193.00 - 1.00 -
A Shares Global Balanced Fund - Income Units £ 1.3225 - 0.0058 2.09
Polunin Discovery - Frontier Markets $ 1275.98 - -15.71 0.00 Europe (ex-UK) 267.60 - 0.80 -
European O Acc 488.43 - 4.48 0.00
Robeco Asset Management (LUX) Santander Atlas Port 7 Acc Inst 153.20 - 0.80 -
Global Balanced Fund - Accumulations Units £ 1.5474 - 0.0068 2.06
Polunin Small Cap $ 1266.92 1282.76 24.45 0.00 Coolsingel 120, 3011 AG Rotterdam, The Netherlands. Japan Equities 152.00 - 1.40 -
www.robeco.com/contact Japanese Fund C Acc 171.99 - 0.33 0.00 Authorised Inv Funds
Global Fixed Interest Fund £ 0.9514 - 0.0015 5.49
FCA Recognised Max 70% Shs Acc Ret 163.60 - 1.20 - Pacific Bas (ex-Japan) 488.80 - 6.30 -
Japanese Fund O Acc 169.97 - 0.32 0.00
Asia-Pacific Equities (EUR) € 119.29 - -0.64 0.00
Sterling Fixed Interest Fund £ 0.8345 - 0.0040 4.28
Private Fund Mgrs (Guernsey) Ltd (GSY) Max 70% Shs Inc Ret 137.80 - 1.00 - Sterling Bonds 265.50 - 1.40 -
Pacific C Acc 278.09 - 2.52 0.59
Regulated Chinese Equities (EUR) € 63.42 - 0.06 0.00
UK Equity Fund £ 1.8084 - 0.0159 2.91
Monument Growth 19/01/2016 £ 459.42 464.53 -18.20 1.22 Investments Inc Acc Ret 156.00 - 0.90 - UK Equities 256.10 - 2.30 -
Pacific O Acc 274.93 - 2.48 0.27
Em Stars Equities (EUR) € 152.83 - 0.12 0.00
Investments Inc Inc Ret 102.60 - 0.60 - US Equities 256.10 - 0.50 -
Total Return C Acc 380.01 - -0.02 1.41
Emerging Markets Equities (EUR) € 126.51 - 0.50 0.00
Prusik Investment Management LLP (IRL) Equity Inc Inc Inst 238.00 - 2.50 - B Shares
Total Return C Inc 263.30 - -0.01 1.42
Enquiries - 0207 493 1331 Flex-o-Rente (EUR) € 110.75 - 0.28 0.00 Pacific Bas (ex-Japan) 488.10 - 6.30 -
Regulated Equity Inc Inc Ret 203.80 - 2.10 -
Total Return O Inc 260.43 - -0.01 1.42
Prusik Asian Equity Income B Dist $ 145.35 - 2.36 3.84 Glob.Consumer Trends Equities (EUR) € 143.14 - 0.35 0.00
Equity Inc Acc Inst 143.70 - 1.40 -
Total Return O Acc 376.04 - -0.01 1.40
Prusik Asia A $ 178.20 - 2.71 0.00 High Yield Bonds (EUR) € 119.77 - 0.45 0.00
Saracen Fund Managers Ltd (1000)F (UK)
N&P UK Gwth Inc Ret 158.20 - 1.40 -
19 Rutland Square, Edinburgh EH1 2BB Stenham Asset Management Inc
Prusik Asian Smaller Cos A $ 129.49 - 1.25 0.00 Lux -O- Rente (EUR) € 144.28 - 0.30 0.00 www.stenhamassetmanagement.com
Dealing: 00 353 1 603 9921
Stckmkt 100 Track Gwth Acc Inst 86.81 - 0.89 - Other International Funds
Saracen Investment Funds ICVC (OEIC) Enq. 0131 202 9100
New World Financials (EUR) € 45.99 - -0.52 0.00 Stenham Asia USD $ 128.00 - -1.80 -
Authorised Inv Funds
Stckmkt 100 Track Gwth Acc Ret 161.50 - 1.70 -
Saracen Growth Fd Alpha Acc £ 3.50 - -0.02 0.97
Purisima Investment Fds (UK) (1200)F (UK) US Premium Equities (EUR) € 162.25 - -0.25 0.00 Stenham Credit Opportunities A Class USD $ 99.47 - -1.45 0.00
40 Dukes Place, London EC3A 7NH UK Growth Acc Inst 277.30 - 2.50 -
Saracen Growth Fd Beta Acc £ 5.60 - -0.02 1.45
Order Desk and Enquiries: 0345 922 0044 US Premium Equities (USD) $ 181.46 - -0.27 0.00 Stenham Equity UCITS USD $ 127.84 - 0.20 0.00
Authorised Inv Funds UK Growth Acc Ret 321.00 - 2.90 -
Saracen Global Income & Growth Fund A - Acc £ 1.07 - -0.01 3.01
Authorised Corporate Director - Capita Financial Managers S W Mitchell Capital LLP (CYM) Stenham Growth USD $ 214.36 - -1.09 -
Global Total Fd PCG A 158.92 - 1.10 0.52 Regulated UK Growth Inc Ret 211.50 - 1.90 -
Saracen Global Income & Growth Fund A - Dist £ 0.99 - -0.01 2.75
Royal Bank of Scotland (2230)F (UK) S W Mitchell European Fund Class A EUR € 328.95 - -9.46 - Stenham Healthcare USD $ 184.07 - 0.80 0.00
Global Total Fd PCG B 157.81 - 1.09 0.26 PO Box 23873, Edinburgh EH7 5WJ 0800 917 7072 Managed OEIC
Saracen Global Income and Growth Fund -Acc £ 1.33 - -0.02 3.37
Authorised Inv Funds S W Mitchell Small Cap European Fund Class A EUR € 231.38 - 0.21 - Glob Em Shs Port Acc Ret 144.50 - 1.60 - Stenham Managed Fund USD $ 113.54 - -0.62 -
Global Total Fd PCG INT 156.07 - 1.08 0.00 Series 5 (Minumum Initial Investment £75,000) Saracen Global Income and Growth Fund -Dist £ 1.16 - -0.01 2.78
United Kingdom Equity Index Fund £ 14.60 - -0.14 3.08 The Charlemagne Fund EUR € 315.89 - -12.01 - Max 70% Shs Port Acc Ret 249.00 - 0.80 - Stenham Macro UCITS USD $ 100.11 - -1.08 -
Saracen UK Income Fund - Acc £ 0.91 - -0.01 -
UK Specialist Equity Inc £ 18.18 - 0.01 0.42 Max 70% Shs Port Acc X 178.80 - 0.60 - Stenham Multi Strategy USD $ 115.54 - -0.74 -
Purisima Investment Fds (CI) Ltd (JER) Saracen UK Income Fund - Dist £ 0.88 - -0.01 -
Regulated Contl Europe Specialist Fund £ 22.56 - -0.12 0.00 S W Mitchell Capital LLP (IRL) Max 70% Shs Port Acc S 144.70 - 0.50 - Stenham Quadrant USD A $ 398.60 - -2.93 -
PCG B 151.38 - -1.42 0.00 Regulated .
Japan Specialist Fund £ 14.49 - -0.06 0.00 SWMC European Fund B EUR € 13734.14 - -333.61 0.00 Investment Port Acc Ret 233.20 - 0.90 - Stenham Trading Inc USD $ 115.43 - -0.76 -
For Save & Prosper please see Countrywide Assured
PCG C 149.24 - -1.40 0.00
US Spec Equity Fund £ 17.97 - -0.17 0.00 SWMC UK Fund B £ 10829.60 - -117.97 0.00 Investment Port Acc X 165.30 - 0.60 - Stenham Universal USD $ 430.13 - -1.32 -
 FINANCIAL TIMES Monday 1 February 2016 FTfm | 19

FTfm

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

Stenham Universal II USD $ 159.28 - -0.56 0.00 IGV - Acc Z 361.60 - 2.10 1.62 Value Partners Classic Equity Fund USD Z Unhedged $ 9.67 - 0.23 0.00

European Value Partners Classic Equity Fund CHF HedgedSFr 10.10 - 0.24 0.00 Waverton Investment Funds Plc (1600)F (IRL)
EGV - Acc S 259.90 - 0.50 0.00 waverton.investments@citi.com
Stratton Street Capital (CI) Limited (GSY) Value Partners Classic Equity Fund EUR Hedged € 10.21 - 0.24 0.00 FCA Recognised
Regulated EGV - Acc Z 259.90 - 0.50 0.81 Waverton Asia Pacific A USD $ 15.69 - 0.27 5.23
Japan Synthetic Warrant Yen Class ¥ 1362.59 - -419.81 0.00 Value Partners Classic Equity Fund GBP Hedged £ 10.45 - 0.25 0.00
Continental Waverton Global Bond Fund Cls A $ 8.50 - -0.09 5.42
Japan Synthetic Warrant GBP Hedged Class £ 197.20 - -2.68 0.00 CGV Acc S 107.70 - 0.40 0.06 Value Partners Classic Equity Fund GBP Unhedged £ 11.15 - 0.00 0.00
Troy Asset Mgt Ltd (UK)
40 Dukes Place, London EC3A 7NH Waverton Global Equity Fund A GBP £ 13.02 - 0.09 0.58
Japan Synthetic Warrant USD Class $ 15.08 - -4.14 0.00 CGV Acc X 106.20 - 0.40 0.00 Value Partners Classic Equity USD Hedged $ 11.89 - 0.28 0.00
Order Desk and Enquiries: 0345 608 0950
Authorised Inv Funds Waverton UK Fund A GBP £ 12.50 - 0.09 1.85
Japan Synthetic Warrant USD Hedged Class $ 196.54 - -2.43 0.00 CGV Inc A 107.30 - 0.40 - Value Partners Greater China Equity Fund $ 7.27 - 0.04 -
ACD Capita Financial Mgrs
Waverton Equity Fund A GBP £ 13.82 - 0.01 0.19
Trojan Investment Funds
Renminbi Bond Fund AUD Cls A A$ 111.73 - 0.37 3.93 CGV Inc B 107.30 - 0.40 - Value Partners Health Care Fund RMB Class Z UnhedgedCNH 8.76 - -0.02 -
Spectrum Fund O Acc 158.11 - -0.10 0.28
Waverton Sterling Bond Fund A GBP £ 9.39 - 0.02 5.31
Renminbi Bond Fund AUD Cls B A$ 113.58 - 0.37 3.67 Value Partners Health Care Fund HKD Class A UnhedgedHK$ 8.21 - -0.03 -
Spectrum Fund O Inc 154.12 - -0.09 0.28

Renminbi Bond Fund CHF Cls A SFr 108.22 - 0.33 4.01 The Hartford International Funds (IRL)
Spectrum Income Fund O Acc 95.71 - 0.37 -
Value Partners Health Care Fund USD Class A Unhedged $ 8.20 - -0.02 -
Regulated WA Fixed Income Fund Plc (IRL)
Renminbi Bond Fund CHF Cls B SFr 108.21 - 0.34 3.76 Gbl Govt Bond (Ex Japan) Index (GBP) £ 1683.04 - -7.66 0.00 Regulated
Spectrum Income Fund O Inc 95.28 - 0.38 -
European Multi-Sector € 116.21 - 0.32 0.00
Renminbi Bond Fund CNH Cls A CNH 120.16 - 0.42 3.36 UK Corporate Bond £ 1576.56 - 9.34 0.00
Trojan Ethical Income O Acc 98.90 - 0.99 -
Veritas Asset Management LLP (IRL)
HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
Renminbi Bond Fund CNH Cls B CNH 120.09 - 0.41 3.13 Gilt £ 1623.67 - 9.19 0.00 Veritas Funds Plc
Trojan Ethical Income O Inc 98.95 - 0.99 -
www.veritas-asset.com
Renminbi Bond Fund Euro Cls B € 110.03 - 0.35 3.76 Global Eq (Ex Japan) Index Fund ¥ 1.27 - 0.00 0.00 +353 1 635 6799
Trojan Fund O Acc 263.86 - 1.45 0.43
FCA Recognised
Renminbi Bond Fund GBP Cls B £ 111.93 - 0.36 3.53 Global Eq (ex Japan) Class HJ4 ¥ 1.32 - 0.00 0.00 Institutional
Trojan Fund O Inc 218.90 - 1.21 0.43
Veritas Asian Fund A USD H $ 294.37 - 2.60 0.42
Renminbi Bond Fund SGD Cls B S$ 111.56 - 0.38 3.48 Global Eq (ex Japan) Class JP5 ¥ 1.39 - 0.00 0.00
Trojan Global Equity O Acc 221.10 - 1.40 0.88
Veritas Asian Fund A GBP H £ 378.54 - 3.59 0.24
Yuki International Limited (IRL)
Renminbi Bond Fund USD Cls B $ 111.71 - 0.36 3.29 Global Eq Ex Japan Index Fund (Hedge) ¥ 1.28 - 0.00 0.00
Trojan Global Equity O Inc 188.33 - 1.18 0.88 Tel +44-20-7269-0207 www.yukifunds.com
Veritas Asian Fund A EUR H € 306.41 - 2.73 0.21
Regulated
Renminbi Bond Fund YEN Cls B ¥ 12672.89 - 37.89 0.00 Gbl Govt Bond (Ex Japan) Index ¥ 1.32 - 0.01 0.00
Trojan Income O Acc 277.34 - 3.59 3.64 Yuki Mizuho Umbrella Fund
Veritas China Fund A USD $ 129.55 - 1.72 0.35
Yuki Mizuho Japan Dynamic Growth ¥ 6407.00 - 265.00 0.00
Renminbi Bond Fund USD Cls A $ 153.76 - 0.49 3.53 Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.29 - 0.00 0.00
Trojan Income O Inc 175.68 - 2.28 3.75
Veritas China Fund A GBP £ 134.07 - 1.78 0.36
Yuki Mizuho Japan Large Cap ¥ 777.62 - -0.38 0.00
Renminbi Bond Fund GBP Cls A £ 148.93 - 0.47 3.78 Japan Equity Index Fund ¥ 0.99 - 0.03 0.00
Veritas China Fund A EUR € 128.05 - 1.70 0.36
Yuki Japan Low Price ¥ 24600.00 - 569.00 0.00
Renminbi Bond Fund SGD Cls A S$ 147.51 - 0.49 3.73 Japan Equity Class JP3 ¥ 1.20 - 0.04 0.00
UBS Asset Management (UK)
Veritas Global Equity Income Fund D USD $ 106.27 - 1.21 4.25
21 Lombard Street, London, EC3V 9AH Yuki Japan Value Select ¥ 11703.00 - 378.00 0.00
Renminbi Bond Fund YEN Cls A ¥ 18767.00 - 55.99 0.00
Client Services 0800 587 2113, Client Dealing 0800 587 2112
Veritas Global Equity Income Fund D EUR € 188.64 - 2.17 4.17
www.ubs.com/retailfunds YMR Umbrella Fund
Renminbi Bond Fund EUR Cls A € 101.02 - 0.32 4.00 The National Investor (TNI) Authorised Inv Funds YMR N Growth ¥ 16494.00 - -1.00 0.00
www.tni.ae Veritas Global Equity Income Fund D GBP £ 144.32 - 1.70 4.17
OEIC
Other International Funds
Global Emerg Mkts Eqty B Acc £ 1.21 - 0.01 1.76 Yuki Asia Umbrella Fund
TNI Blue Chip UAE Fund * AED 8.47 - 0.13 0.00 Veritas Global Focus Fund D USD $ 23.81 - 0.00 0.65
Yuki Japan Rebounding Growth Fund JPY Class ¥ 22101.00 - 771.00 0.00
Global Optimal B Acc £ 0.93 - 0.01 0.64
TNI Funds Ltd (BMU) Veritas Global Focus Fund D EUR € 21.96 - -0.01 0.64
Yuki Japan Rebounding Growth Fund USD Hedged Class $ 873.13 - 29.71 -
MENA Hedge Fund $ 938.96 - 33.96 0.00
UBS UK Opportunities Fund B Acc £ 0.79 - 0.01 3.17
Veritas Global Focus Fund D GBP £ 28.24 - 0.00 0.63
TNI Funds Plc (Ireland)
US Equity B Acc £ 1.35 - 0.01 0.29
MENA UCITS Fund * $ 937.48 - 10.22 0.00 Veritas Global Focus Fund A GBP £ 27.27 - 0.00 0.36
Zadig Gestion (Memnon Fund) (LUX)
E.I. Sturdza Strategic Management Limited (GSY) UBS S&P 500 Index C Acc £ 0.52 - 0.00 1.07 FCA Recognised
Regulated Veritas Global Focus Fund A EUR € 12.80 - 0.00 0.36
Memnon European Fund I GBP £ 110.38 - -1.87 0.00
Nippon Growth Fund Limited ¥ 88573.00 - 4769.00 0.00 UBS Targeted Return B Acc £ 1.18 - 0.01 0.84
Thesis Unit Trust Management Limited (UK) Veritas Global Focus Fund A USD $ 22.97 - -0.01 0.38
Strat Evarich Japan Fd Ltd JPY ¥ 82538.00 - -704.00 0.00 Exchange Building, St Johns Street, Chichester, West Sussex, PO19 1UP UBS Sterling Corporate Bond Indexed Fund 50.67 - -0.18 3.29
Authorised Funds Veritas Global Focus Fund C GBP £ 29.61 - 0.00 0.00
Zebedee Capital Partners LLP (CYM)
Strat Evarich Japan Fd Ltd USD $ 815.91 - -7.01 0.00 TM New Court Fund A 2011 Inc £ 12.63 - 0.02 0.00 UBS Multi Asset Income B Inc (net) £ 0.47 - 0.00 3.69
Veritas Global Focus Fund C EUR € 23.13 - -0.01 0.00 Regulated
Zebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00
TM New Court Fund - A 2014 Acc £ 12.66 - 0.02 0.00 UBS UK Equity Income B Inc Net £ 0.34 - 0.00 4.98
Veritas Global Focus Fund C USD $ 25.01 - -0.01 0.00
Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00
E.I. Sturdza Funds PLC (IRL) TM New Court Equity Growth Fund - Inc £ 12.66 - 0.03 0.00 Corporate Bond UK Plus B Inc Net £ 0.51 - 0.00 4.00
Veritas Global Equity Income Fund A GBP £ 138.26 - 1.62 4.18
Regulated Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00
Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 957.95 - -10.34 0.00 UBS Global Allocation (UK) B Acc £ 1.03 - 0.01 1.46
Veritas Global Equity Income Fund A EUR € 183.21 - 2.11 4.17
Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1129.01 - -12.16 0.00 UBS Global Enhanced Equity Income C Inc £ 0.44 - 0.00 11.91
Veritas Global Equity Income Fund A USD $ 102.24
Money Market
- 1.18 4.25
Nippon Growth (UCITS) Fund JPY Class A shares ¥ 88735.00 - -950.00 0.00 UBS US Growth Fund B Acc £ 1.48 - 0.02 0.00

Trusts and
Veritas Global Equity Income Fund C GBP £ 166.23 - 1.96 -
Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 74407.00 - -796.00 0.00 UBS Emerging Markets Equity Income B Inc £ 0.33 - 0.01 6.72 Asset Management
Asset Management Veritas Global Equity Income Fund C EUR € 220.15 - 2.54 -
Bank Accounts
Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 82212.00 - 968.00 0.00
Asset Management
Toscafund Asset Management LLP
www.toscafund.com
(UK) Asse
Veritas Global Equity Income Fund C USD t$ 122.13
Man - agement
1.40 - Gross
Gross Net AER Int Cr
Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 48226.00 - -516.00 0.00 Authorised Funds Unicapital Investments (LUX)
Veritas Global Real Return Fund A USD $ 20.41 - -0.07 0.29
Aptus Global Financials B Acc £ 2.78 - -0.05 4.54 Regulated
Strategic China Panda Fund USD $ 1937.22 - 4.26 0.00 Investments III € 5.03 - -22.38 - CCLA Investment Management Ltd
Veritas Global Real Return Fund A GBP £ 11.43 - -0.04 0.32
Aptus Global Financials B Inc £ 2.43 - -0.04 4.55 Senator House 85 Queen Victoria Street, London EC4V 4ET
Strategic China Panda Fund Hedged EURO € 1889.02 - 3.81 0.00 Investments IV - European Private Eq. € 247.75 260.13 -44.58 - CBF Church of England Deposit Fund 0.50 - 0.50 Qtr
Veritas Global Real Return Fund A EUR € 12.04 - -0.04 0.12
Strategic China Panda Fund Hedged Sterling £ 1914.99 - 4.08 0.00 Investments IV - Global Private Eq. € 366.42 384.74 -49.81 -
Retail CCLA Fund Managers Ltd
Toscafund Asset Management LLP Veritas Asian Fund B USD $ 205.03 - 1.81 0.00 Senator House 85 Queen Victoria Street, London EC4V 4ET
Strategic Euro Bond Accumulating Class CHFSFr 981.13 - 0.07 0.00 www.toscafund.com
COIF Charities Deposit Fund 0.45 - 0.45 Qtr
Other International Funds Veritas Asian Fund B GBP £ 278.94 - 2.64 0.00
Strategic Euro Bond Institutional Class EUR € 1009.79 - 0.10 0.00 Tosca A USD $ 305.04 - -1.61 0.00 Unicorn Asset Management Ltd (UK)
PO Box 10602, Chelmsford, Essex, CM1 9PD 0845 026 4287
Veritas Asian Fund B EUR € 225.64 - 2.01 0.00
Strategic Euro Bond Fund Accumulating Class Shares € 1131.75 - 0.10 0.00 Tosca Mid Cap GBP £ 245.63 - -7.49 0.00 Authorised Inv Funds
UK Growth A Inc 398.89 - 0.55 0.00
Veritas China Fund B GBP £ 129.96 - 1.73 0.00
Data Provided by
Strategic Euro Bond Fund Distributing Class Shares € 1021.65 - 0.10 1.33 Tosca Opportunity B USD $ 334.27 - -12.71 0.00
Mastertrust A Inc F 350.67 - 1.15 0.07
Veritas China Fund B EUR € 163.91 - 1.09 0.00
Strategic European Smaller Companies Fund EUR Class € 916.93 - 7.85 - Pegasus Fund Ltd A-1 GBP £ 55.26 - -0.15 0.00
UK Growth B Inc 400.63 - 0.55 0.56
Veritas Global Focus Fund B USD $ 16.58 - -0.01 0.00
Strategic Global Bond RMB Acc $ 1049.21 - 1.05 0.00
Mastertrust B Inc F 314.71 - 1.03 0.89
Veritas Global Focus Fund B GBP £ 20.83 - 0.00 0.00
Strategic Global Bond USD Acc $ 1049.23 - 0.18 0.00
Outstanding British Cos A Acc F 247.80 - 0.75 0.64
Veritas Global Focus Fund B EUR € 15.24 - 0.00 0.00
Strategic US Momentum and Value Fund $ 689.70 - -7.26 0.00
Outstanding British Cos B Acc F 259.26 - 0.80 1.37
www.morningstar.co.uk
Veritas Global Equity Income Fund B GBP £ 127.09 - 1.49 4.20
Strategic US Momentum & Value Fund USD I Class $ 458.30 - -4.81 0.00
Data as shown is for information purposes only. No
UK Smaller Cos A Inc F 417.70 - -0.22 0.35 offer is made by Morningstar or this publication.
Veritas Global Equity Income Fund B EUR € 167.99 - 1.94 4.19
Strategic US Momentum and Value EUR Hedged Class EUR € 480.77 - -5.04 0.00
TreeTop Asset Management S.A. (LUX)
UK Smaller Cos B Inc F 408.83 - -0.21 1.22
Regulated Veritas Global Equity Income Fund B USD $ 101.27 - 1.16 4.27
Strategic US Momentum and Value CHF Hedged Class CHFSFr 477.60 - -5.02 0.00
TreeTop Convertible Sicav
UK Income A Acc F 252.20 - -0.20 3.82
International A € 270.97 - -6.06 0.00 Veritas Global Real Return Fund B USD $ 19.79 - -0.07 0.00

UK Income A Inc F 224.26 - -0.19 3.91

International B $ 348.03 - -7.78 0.00 Veritas Global Real Return Fund B GBP £ 11.21 - -0.05 0.00
Taube Hodson Stonex Ptnrs UT (1200)F (UK)
50 Bank Street, Canary Wharf, London E14 5NT UK Income B Acc F 268.15 - -0.21 3.80
International C £ 117.65 - -2.67 0.00 Veritas Global Real Return Fund B EUR € 12.86 - -0.04 0.00
Admin: 50 Bank Street, Canary Wharf, London E14 5NT
Dealing & Enquiries: 0870 870 8433 UK Income B Inc F 238.56 - -0.19 3.89
Authorised Inv Funds International D € 251.52 - -5.63 3.04
THS Growth & Value Funds
International
TreeTop Global Sicav Veritas Asset Management LLP
Global Opp.A € 128.24 - 0.92 0.00 www.veritas-asset.com
IGV - Inc A 298.60 - 1.80 2.43
Other International Funds
Global Opp.B $ 126.18 - 1.31 0.00 Real Return Asian Fund USD (Est) € 277.60 - -26.20 0.00
IGV - Inc B 297.40 - 1.80 1.61

Global Opp.C £ 167.67 - 0.33 0.00 Real Return Asian Fund GBP (Est) £ 296.77 - -7.03 0.00
IGV - Acc X 364.20 - 2.20 1.90

Sequoia Equity A € 124.70 - -3.71 0.00 Real Return Asian Fund EUR (Est) $ 292.91 - -10.89 0.00
IGV - Acc Y 391.00 - 2.40 2.39
Value Partners Hong Kong Limited (IRL)
Sequoia Equity B $ 126.53 - -3.59 0.00 www.valuepartners.net, fis@vp.com.hk
Regulated
Sequoia Equity C £ 150.75 - -5.71 0.00 Value Partners Asia ex-Japan Equity Fund $ 7.72 - 0.03 -
20 | FTfm
The week
C Bill Ackman has written an
apologetic letter to investors in
his Pershing Square hedge
fund after it suffered the worst
year in its history. Pershing
ended 2015 down 20.5 per cent
after fees. It failed to sell out of
Valeant Pharmaceuticals, a
Canadian drug company that
attracted political
criticism for raising
prices.
A defiant Mr
Ackman said
Pershing’s poor
performance
was not due to
“unforced errors” but
down to “the market’s
reappraisal” of his holdings.
C A third of the shareholders in
Aberdeen Asset Management
voted against the high pay
awards made to the investment
group’s executives in the year
to September 2015, when it
posted net outflows of £40.7bn.
Martin Gilbert, the chief
executive, was awarded a
£4.3m pay package, down from
£4.8m in 2013/14 and below his
record payout of £5.1m the
previous year.
Aberdeen has promised to
improve transparency around
performance targets for
executive bonuses following
objections from institutional
shareholders.
But its problems persist. The
FTSE 100 listed manager,
which specialises in emerging
market and Asian funds, last
week announced an 11th
consecutive quarter of net fund
outflows.
C Blackstone, the world’s
largest alternative assets
manager, reported fourth-
quarter earnings that were hit
hard by volatility in equity and
credit markets at the end of
2015.
Although profits were below
analysts’ expectations,
Legal & General and PGGM have launched a build-to-rent
partnership in the UK — Bloomberg
FINANCIAL TIMES Monday 1 February 2016
NEWS
INSIDE AND
THE LAST WORD QUOTE OF THE WEEK
Stephen Foley Edward Bonham-Carter,
For many US college
and university ONLINE Jupiter
‘Fund management has a
endowments, this is particular stress. Rather like
the reality of an era sport, it is quite clear to the
of low returns: the risk outside world if you are VIDEO
of cuts to financial aid doing well or badly. That is BoJ dilemma
Uncertain markets and a
for students, teaching why it is such an interesting,
Bill Ackman has apologised budgets and campus but also demanding, rising yen put pressure on
to investors building projects profession’ Japan’s central bank
PAGE 11 PAGE 4 VIDEO.FT.COM/FTFM
Blackstone is sitting on almost
$80bn of dry powder. It plans
to buy energy assets on
the cheap with oil prices
at around $30 a barrel.
“Oil and gas prices are
at lower levels than will be
sustained in the long term,”
said Tony James, Blackstone’s
president.
C Legal & General, the UK
insurer, and PGGM, the Dutch
pension fund manager,
launched a build-to-rent
partnership to help address the
UK housing crisis.
They plan to invest £600m
to build 3,000 privately rented
homes in Britain, starting with
developments in Bristol,
Salford and Walthamstow.
C State Street said institutional
investors pulled $100m net
from its asset management
unit last year.
The Boston-based bank also
warned that a key client was
planning to make further
withdrawals of up to $35bn in
2016 by running index-tracking
strategies in-house.
C Invesco announced new cost
savings plans. The Atlanta-
based asset manager
published its full-year results
that showed it attracted long-
term net investor inflows of
$16.2bn in 2015.
Invesco bought Jemstep, a
US robo-adviser, in January
and it has also acquired a
controlling interest in its joint
venture in India, Religare
Invesco Asset Management, as
part of expansion plans.
 FTfm Special Report

Exchange traded funds

Monday February 1 2016 www.ft.com/reports | @ftreports

Inside

Complex products
raise concerns
Regulators may try
to curtail growth
PAGE 2

Emerging markets
test investor faith
Asset managers
remain optimistic
PAGE 4

Smaller providers
forced to innovate
But new hit
products are rare
PAGE 6

A market driven
by ‘speculators’
ETF traders’
thinking is more
short term

Full steam ahead, but where to? PAGE 10

Assets continue to pour into ETFs yet smaller funds struggle amid growing signs of fragility
102| |FTReports
FTReports FINANCIAL TIMES
FINANCIAL Monday
TIMES 1 February
Monday 2016
1 February 2016 FINANCIAL TIMES Monday 1 February 2016 FTReports | 3

FTfm
FTfmExchange
Exchangetraded
tradedfunds
funds FTfm Exchange traded funds

Ecosystem Regulators are worried about ‘scary growth’ utive of BlackRock, the world’s Meanwhile, the Financial Contributors
‘A market driven by speculators’
and fragility in times of stress, writes Chris Newlands
largest fund manager, simply
calls “toxic”.
Leveraged ETFs seek to
deliver multiples of the per-
formance of the index or
Stability Board, which was set
up after the 2008 financial cri-
sis and represents central
banks and regulators, said in
2011 that it had seen “a
Chris Newlands
Asset management editor
@newlands_chris
For advertising details, contact:
Mariam Lolavar, +44 (0) 207
775 6671 and
mariam.lolavar@ft.com, or your
benchmark they track, while number of disquieting devel-
usual FT representative.
Trends Some consider ment behaviour. If someone wants to
buy an ETF to buy and hold it’s a good
inverse ETFs aim to return the
opposite performance of the
opments” in the sector.
At the same time, the Bank
Madison Marriage
Deputy asset management
the short-term tool for that. If someone buys it for a benchmark they follow. of England warned that the editor
@miss_marriage All editorial content in this
trading of index funds tactical trade, it’s a good tool for that
as well. ETFs are just providing a solu-
Mr Bogle is highly critical of
the launch of funds that differ
risks associated with ETFs
were not being made clear. report is produced by the FT.
to be risky behaviour, tion for how investors want to trade.” markedly to the original ETF Mr Laird reiterates that Chris Flood Our advertisers have no
Norm Champ, former director of structure. In his editorial for many of the concerns are over- FTfm reporter influence over or prior sight of
says Attracta Mooney the investment management division FTfm published last year, he blown and, in reference to the @chrisflood_FTfm the articles.
at the Securities and Exchange Com- wrote: “In my experience — problems seen in August, says:

J
ohn Bogle, the man credited mission, the US watchdog, and a lec- almost 64 years in the fund “In my view, the problem is Attracta Mooney
with creating the first index turer at Harvard, agrees. industry — I have learnt to not with ETFs but short-term FTfm reporter For more content on the funds
tracker fund, is a respected “Personally, I am a buy and hold beware of investment ‘prod- trading disrupting markets. @AttractaMooney industry go to ft.com/ftfm
figure in the investment guy, but I don’t understand imposing ucts’, especially when they are “ETFs are one tool for specu- or follow FTfm on Twitter at
community. So much so that that view on other investors. If people ‘new’ and even more when lators, but we must not throw Sophia Grene @ftfm
his fans, known as Bogleheads, turn want to use ETFs to trade daily, they they are ‘hot’. Avoiding hot the baby out with the bathwa- FTfm reporter
up to a conference each year in the should be able to use them that way.” new products is unlikely to ter — many investors use ETFs @SophiaGrene For more content on the
hope of hearing him speak. Others say the focus on the large impair the returns investors in long-term buy-and-hold exchange traded funds
At last year’s event in October, Mr daily trading volumes in ETFs misses earn. Far more likely the portfolios.” industry go to: ft.com/etfs
Bogle, the founder and former chief an important point. reverse is true.” The senior executive at a

Is it time to
executive of Vanguard, the second-
largest fund house in the world by
assets under management, launched
an attack on exchange traded funds
that raised eyebrows at ETF provid-
ers worldwide.
Although ETFs have traditionally
been substitutes for mutual funds,
they are widely used as a lower-cost
solution to instruments such as deriv-
atives when investors want to take a
long or short position in their portfo-
He adds: “I believe that too
few investors fully understand
the appropriate uses of ETFs.”
Peter Sleep, senior portfolio
manager at 7IM, the UK wealth
manager, is sympathetic to Mr
European ETF provider, revis-
its the gardening analogy:
“There is no doubt the ETF
market is getting a far harder
time than it deserves but I
must admit it’s getting a little
Emma Boyde
Commissioning editor

Steven Bird
Designer
All FT Reports are available at:
ft.com/reports

halt the
ETFs, Mr Bogle warned, “have
become the new way to speculate”.
This is happening because ETFs can
be bought and sold at any time unlike
traditional mutual funds — even
those that are index trackers — which
lio.
“Much of the volume in ETFs is
from large institutions looking to
hedge or neutralise their positions,”
says Lee Kranefuss, executive chair-
man of Source, the $17.6bn ETF pro-
Bogle’s concerns up to a point.
He says: “It is only natural for
commentators to question and
want to kick the tyres of some-
thing that is as new and popu-
lar as ETFs.”
wild and could do with some
cutting back.”
Emily Lewis
Picture editor
Follow Special Reports on
Twitter @ftreports

rise of the
typically only offer daily or even vider. However, Mr Sleep believes
weekly liquidity. “Hedging is generally good for many of the fears are over-
For a long-term investor like Mr investors — it’s a way of lowering stated: “I have just finished
Bogle, this short-term trading behav- risk,” adds Mr Champ. reading a book on the early
iour is risky. “[Mr Bogle] believes an There have also been concerns that days of the railway boom. Rail-
index fund is an investment to buy short-term ETF traders try to capital- ways faced similar scrutiny

ETF machine?
and hold for an investment lifetime,
not one to trade at the speed of light,”
says a colleague of the 86-year-old
investor.
Research backs up Mr Bogle’s view,
at least when it comes to small inves-
tors. A study by Goethe University,
Frankfurt, found that most
ise on potential weak spots in ETFs, with commentators worried
which happened last summer as doz- that trains would stop hens
ens of the products traded at sharp from laying, cause cows to stop
discounts to their holdings for a short grazing and cause people to
period. The argument is that such atomise from travelling at the
behaviour could hit the price of breakneck speed of 12.5mph.”
underlying stocks dramatically. Nevertheless, doubts about
small Trading on that day was the Industry figures, however, played the safety and suitability of

L
ike any good gar- Investor John “Jack” Bogle,
investors in ETFs
dener, thesubstantially
US finan- worst in the US for four years, who founded low-cost fund down any suggestions the short-term exchange traded funds con-
underperformed the market,
cial regulator hastypi-and was littered with more giant Vanguard and created trading of ETFs is affecting the mar- tinue to surface.
cally because they bought
decided that andthesold than 1,000 trading halts — the first ever index fund, says: ketplace. Those worries first appeared
ETFs too rapidlyrapidly andexpanding
at the wrong stoppages that inhibited the “Yes, it is high time both the Sean Tuffy, head of regulatory after the “flash crash” in May
time.
exchange traded fund market essential arbitrage mechanism ETF industry and policymak- intelligence at Brown Brothers Har- 2010 when US financial mar-
“Adopting
may need apruning
buy-and-hold strategy
to ensure of ETFs and prompted their ers re-examine the entire ETF riman, the US bank, says ETFs are kets experienced a brief but
is more
healthyimportant
growth. than selecting bet- prices to fall well below the ecosystem. Why? Because of being used in the way they were severe drop in prices. ETFs
ter ETFs
Justfora individual
couple ofinvestors,”
months the indices they are designed to its sheer size and fragility in envisaged. were initially blamed for caus-
study’s
before authors
the ETF wrote.
market had set track. times of market stress.” “ETFs were designed to be traded ing that crash but investiga-
But
a newfigures indicate
record that short-term
for global asset The wild price swings Mr Bogle is a long-time critic throughout the day, which is what’s tions by US regulators eventu-
investments
gathering —insome ETFs$372bn
are common. tions. These
for prompted short and
Mr Aguilar leveraged
to pose ETFs
of the market who has previ- products come with more risks. “Lev- happening. Overall I think it’s hard to ally blamed a poorly executed
The2015largest
— Luis ETF in thecommis-
Aguilar, world, the — which
seven use derivatives
questions about the to ouslydeliver told investors to eraged and inverse ETFs are generally get too upset that an investment $4.1bn derivatives trade.
SPDR S&Pof500,
sioner thebetter knownand
Securities as SPY, returnsand
credibility thatsuitability
are a multiple of the ETFs, warning that
of “beware” not a good idea for long-term invest- product is being used for investment More recent dissent has
experienced trading turnover
Exchange Commission, asked: of ETFsindex they
at the track —meeting.
October enable investors
the onlyto clear winners in the ment, but can be used to express purposes,” he says. come from Carl Icahn, the bil-
more thanwe
“Should 200 per cent
consider in the first
curtailing trade
These tactically,
included says Townsend
whether the rapidlyLans-expanding market are short-termviews,”headds. Mr Tuffy adds: “I’m always a bit lionaire activist investor, who
two weeks
the of this
growth year. In the US, ETFs
of ETFs?” timeing, executive
was now right todirector,
“re-ex- head of and dealers.
the brokers However, the use of ETFs to specu- mystified by this use of the word became involved in an
oftenHisaccount
questionfor was
30 per centdur-
posed of daily exchange
amine traded
the entire ETFcommodities
ecosys- atHe
ETF told FTfm last year: late is not necessarily bad, says Hec- speculation as a code for nefarious extraordinary argument with
trading
ing a volumes.
speech in October to fel- tem”Securities. “The investment
and culminated in him strategies
“Mark me as a member of a growth of ETFs tor McNeil, co-chief
is changing executive
senior executive at aatEuropean
activity. In reality,
initial all investment
function is a
of tracking picture looks somewhat differ- BlackRock’s chief executive
Peter Sleep, senior
low regulators portfolio man-
in Washington around
asking shortthe
whether and leveraged
ETF mar- ETFssmallare WisdomTree Europe.
group of cohorts who are behaviour in markets.” ETF provider, who wishes formtoof speculation.”
large liquid indices in devel- ent, with ETFs now under while sitting next to Mr Fink at
ager at 7IM,
after moreathan UK wealth
a fifth manager,
of all ket hadshort-term
grown too trading.”
big. dubious about the utility of In December alone, “There
ETFsis a whole
remain host of reasons“If I was
anonymous. MraBogle,
opedhowever,
markets.” looks unlikely
‘There is no doubt attack for being complex and a conference in July last year.
says: “People do
US-listed use ETFs for
exchange specula- MaryConcerns
traded Jo White,have been raised
chairwoman about
ETFs for long-term investors.” posted net inflows why ofpeople
$55bn,trade on a market
regulator — there
I would to change
be having a his
Thatstance.
changeHeofhas never is
direction that the market is opaque. Mr Icahn claimed high-yield
tive reasons.”
funds were Some
forcedhave gottrad-
to stop burnt by leveraged
of the SEC, added ETFs,that namely
the that Adaman Laird, head of passive marking the 23rdare opportunities
consecutive lookto make
at that money been anwhat
too.” advocate
worriesof ETFs,
critics.even
ETFs Many feel the ETF brand is bond ETFs could create severe
doing
ing onso August
and certain ETFs,
24. That such as
morn- investorwas
commission who remains
paying “closeinvested in
investment at Hargreaves month of positive whether you are Nigel
net flows, a short-term
Brashaw,orlead a author
rejectingwere
the idea of ETFs when
championed he a
for being
getting a far harder being tarnished by a flurry of liquidity problems and
commodity
ing the Dowproducts, encourage
Jones Industrial these products
attention” for more than
to the problems. a day
Lansdown, the fund super- according to research long-termfirm trader.
on That
PwC’sisreport,
really the
“ETF was2020:running Vanguard,
simple although
investment the
structure time than it deserves poorly manufactured ETFs described BlackRock, which
speculation
Average had more than others,
dropped nearly he For could
many,find themselves
Mr Aguilar’s mainwithmarket,
larger- says: “ETFs are an ETFGI. Total assets, choicemean-
and the action of the
Preparing forindivid- fund house
a new horizon”, and,has sincethe
when embraced
first onethewas coming to the market. One notched up a record $139bn of
adds.
1,100 points in the first few question than-expected
is easily losses.
‘ETFs are just providing
answered. area of growing concern for while, stand at $2.99tn ual investor,”
— a fig- headds:
says. “Since their introduction
products.launched
“Too fewininvestors
Canada infully
1989,
but I must admit section of funds to face partic- ETF inflows last year, as “an
In fact, a whole
minutes host of ETFs
of trading before exists Bensay,
Yes, they Seager-Scott,
the ETF market invest- a solution
director ofregulators. for how
This stretches ure consultancy PwC Mrexpects
Lansing saysonlyETFs
twoallow inves-ago understand
decades ETFs the the appropriate
story was that they useswere
of that it is getting a ular scrutiny is leveraged and extremely dangerous com-
whose main function
rebounding by almost is to
600 allow ment
should bestrategy
trimmed at Tilney
and theBestinvest,
beyonda theinvestors
SEC to European to hit $5tn by tors to express their
2020. have market
been views.
undeniably ETFs,” helow
success- says. “Thetransparent
cost, ETF market and is inverse ETFs, a set of funds pany”. Mr Fink dismissed the
investors
points justto moments
take short-term
later. posi- UK-based
sooner wealth manager, says
the better. regulators
want to“The
these as well, because the
trade’ “I don’t
growth is scary,” saysthink
a ful,ETFs changefar
growing invest-
beyonddriven
their byuncomplicated.
speculators.” Today, that
little wild’ that Larry Fink, the chief exec- criticisms as “flat-out wrong”.
4 | FTReports
Downing tools: a fall in the price of oil and indications of a slowdown in China have dented investor confidence in the outlook for emerging economies — Kim Kyung-Hoon/Reuters
EM slowdown hurts passive funds
Emerging markets Fund managers prove unwilling to close lossmaking exchange traded funds, says Madison Marriage
N
o one likes the feeling of
giving up and asset man-
agers are no exception.
Each year the industry
launches hundreds of
funds, but only a fraction of the
unsuccessful ones are closed.
One of the most telling examples of
the industry’s unwillingness to turn
its back on poorly performing funds
comes from one part of the rapidly
expanding exchange traded fund
industry: emerging market ETFs.
ETFs, which give investors cheap
exposure to an ever-increasing range
of countries, sectors and securities by
tracking an index, have arguably
become the most successful innova-
tion of the asset management indus-
try over the past decade. These pas-
sively managed funds attracted net
inflows of $372bn in 2015, a 10 per
cent increase on the previous year,
bringing total industry assets to
$2.99tn, according to ETFGI, the
research firm.
But emerging market-focused
products have been a persistent weak
spot within the story of huge ETF
asset growth.
Emerging market equity ETFs
experienced the highest net redemp-
tions of any ETF sector in 2015. A
total of $16.9bn was taken out of
emerging market equity ETFs com-
FTfm Exchange traded funds
pared with $83.1bn of inflows to Euro-
pean equity ETFs and $57.8bn of
inflows to global equity ETFs, ETFGI
figures show.
The high rate of redemptions fol-
lowed $1.2bn of withdrawals from
emerging market equity ETFs in
2014, which was once again the sector
worst afflicted.
Passive managers of ETFs and
other index-linked products face the
same challenges as active fund
managers. The prospect of further
interest rate rises in the US, a fall in
the price of oil and a slowdown in
China have dented investor confi-
dence in the outlook for emerging
markets.
Emerging market volatility has
been particularly painful for several
ETF providers, which have seen some
of their products dwindle to tiny lev-
els of assets under management.
Although these emerging market
ETFs are now so small they are run-
ning at a loss for parent companies,
the providers are unwilling to give up
on the funds altogether.
ETF Securities, the European asset
manager, for example, has seen the
assets of its China A-share ETF, which
provides direct exposure to China’s
stock market, shrink from $30m at
the start of 2015 to $16m.
James Butterfill, head of research
and investment strategy at ETF Secu-
rities, says the China fund needs at
least $35m of assets to break even.
Mr Butterfill says: “At the moment
[the China ETF] is costing us — it’s
expensive. We launched [the ETF] at
an unfortunate time for China. But we
don’t have any intention to shut it
down. As a firm we have a $50m cash-
pile and it would take a long time for
us to eat into that.”
WisdomTree, the US fund house,
has also seen its emerging market
equity income ETF shrink to $20m
over the past year, while the assets of
its emerging market small-cap equity
income ETF have fallen to $10m.
Both products managed $30m at
‘We have no plans to
close our fund — that
would be very premature’
their peak, says Hector McNeil, co-
chief executive of WisdomTree
Europe.
He says: “We are quite happy to
carry those funds below a certain
level [of assets] while we feel there
will be softness in those markets.
Most people will keep emerging mar-
ket products going, even though the
assets might be [falling]. “We all
believe the emerging market space
will recover. Investor allocations have
dropped a lot in emerging markets,
but they haven’t gone away totally. I
think there is still a bit of pain to be
had, but there will be a point where
people think emerging market equi-
ties look cheap.”
Source, one of Europe’s largest ETF
providers, similarly suffered a steep
decline in the assets of its China ETF
over the past 12 months, from a peak
of $590m at the start of 2015 to $12m
today.
The assets of its main emerging
market ETF have fallen from $350m
to $133m over the same time period.
Chris Mellor, director for equities
product management at Source, says:
“There are still China ETFs out there
and we anticipate to continue to have
a China ETF . . . We have no plans to
close our fund — that would be very
premature. I just don’t see China dis-
appearing from the investor radar.”
Paul Jackson, head of multi-asset
research at Source, adds: “Emerging
markets is always a topic of conversa-
tion given the low valuations and high
yields available and how much cur-
rencies have suffered — investors are
wondering if there isn’t some value
there now.”
Such reluctance to abandon
FINANCIAL TIMES Monday 1 February 2016
unprofitable products is not unusual.
Just 270 ETFs were closed in the 11
months to the end of November 2015,
compared with 822 launches. Of the
funds that closed, only 11 were
emerging market focused, according
to figures from Morningstar, the data
provider.
BlackRock, the world’s largest asset
manager, is one of the few investment
companies to have shut down emerg-
ing market ETFs last year, accounting
for five of the 11 closures. The ETFs it
shut down in August of last year had
between $2m and $20m of assets.
BlackRock also encountered the
highest outflows from any emerging
market ETF last year, after investors
pulled $5.9bn from its MSCI Emerg-
ing Market ETF, which now oversees
$21bn of assets.
Ursula Marchioni, head of the
investment strategy Emea at iShares,
BlackRock’s ETF arm, is cautious
about an imminent recovery in
emerging markets but hints at poten-
tial improvements.
“Signs that we are reaching the bot-
tom would include a turnround in
emerging market growth rates, as
well as a potentially more dovish Fed.
It is difficult to call the bottom but
investors could take tentative steps
into specific markets that are better
positioned,” she says.
6 | FTReports
Competition Large cash flows are also
attracting new entrants, writes Chris Flood
Dominance
of big three
forces wave
of innovation
T
hree big problems con-
front asset managers
looking to establish or
expand their operations
in the rapidly growing
exchange traded fund industry:
BlackRock, Vanguard and State
Street Global Advisors.
These behemoths together control
more than two-thirds of the ETF
industry’s global assets and in 2015
grabbed 55 per cent of the new cash
allocated by investors to ETFs,
according to ETFGI, a consultancy.
But there was plenty for other man-
agers to fight over given the ETF
industry’s record inflows of $372bn
last year.
ETFGI data show that some of the
notable beneficiaries of investors’
growing interest in ETFs include
WisdomTree and Deutsche Asset
Management, which both saw
inflows to ETFs more than triple in
2015 compared with the previous
year. Daiwa, the Japanese fund
house, registered a sixfold increase in
net inflows.
Investors have ploughed around
$1.5tn into ETFs over the past
five years after growing dissatisfac-
tion with the high fees and
widespread underperformance of
actively managed traditional mutual
funds.
The large cash flows are attracting
new competitors. A record 43 man-
agers launched ETFs for the first
time in 2015, including high profile
entities such as Goldman Sachs and
John Hancock, the US arm of Manu-
FTfm Exchange traded funds
Life, the Canada-based financial
services provider.
However, latest research from
ETFGI shows that 276 managers glo-
bally now participate in the ETF
industry, raising doubts about just
how many can prosper in an increas-
ingly competitive industry.
“The barriers to entry into the ETF
industry are low but the hurdles to
achieve success are getting higher
and higher,” says Lee Kranefuss,
executive chairman of Source, the
London-based ETF provider.
Attempting to compete purely on
costs is widely seen as a thankless
task as BlackRock, Vanguard and
State Street have already slashed fees
on some of their most popular funds
in a cut-throat price war.
The competition on pricing is so
intense that midsized managers are
trying to find a niche by focusing on
new ideas, such as smart beta ETFs,
even though the largest providers are
also trying to innovate.
‘It is harder to create a hit
in the ETF industry than
in the music business’
“It is far harder to create a hit in the
ETF industry than in the music busi-
ness,” says Mr Kranefuss.
Sub-scale unprofitable funds
abound across the ETF industry.
ETFGI estimates that more than
6,100 ETFs are now available to
Heavyweights: BlackRock, Vanguard and State Street control two-thirds of ETF assets — Daniel Acker/Bloomberg
investors globally, but around 70 per
cent of those funds have less than
$100m in assets, the minimum level
generally regarded as necessary to
break even. Just under 2,000 ETFs
have less than $10m of assets, effec-
tively making them uninvestable for
many institutional managers.
Mr Kranefuss points out that
greater size generally brings impor-
tant liquidity benefits, allowing inves-
tors to buy and sell more efficiently.
“Investors need to know they can get
out as well as into an ETF,” he adds.
Christos Costandinides, founder of
BlueHarbor, a US-based investment
consultancy, says providers need to
gain size quickly to counteract the
ETF industry’s intense competitive
pressures.
While Mr Kranefuss and Mr
Costandinides believe the industry is
ripe for consolidation, there have
been few mergers and acquisitions.
Just last month, however, Legg
Mason bought a stake in Precidian
Investments, a New Jersey-based
boutique that has developed an inno-
vative active ETF structure.
BMO Global Asset Management,
the Canadian investment manager
acquired the UK fund house F&C in
2014 using the deal as a launch pad to
enter the European ETF market last
year.
Marc Knowles, a director at BMO
Global Asset Management, says
there is no point in launching “me-
too products” to compete against the
well-established ETFs of the big three
providers.
FINANCIAL TIMES Monday 1 February 2016
“Providers have to strive to be dif-
ETF* assets under ferent. It is vital to have the right
management products in an increasingly crowded
$bn market place, to build ETFs that meet
0 20 40 60 80 specific client needs,” he says.
Striving to be different seems to
Deutsche have paid off for one provider. Wis-
Asset domTree, the New York based man-
Management ager, runs a pair of currency hedged
European and Japanese equity ETFs
that were two of the fastest growing
products globally in 2015.
WisdomTree Nizam Hamid, head of sales for
WisdomTree Europe, says smaller
and nimble players can compete
effectively against the industry’s Goli-
BMO aths. “Clients do want to see providers
that offer something different and
who can bring some extra value to
their portfolios,” he says.
Deutsche Asset Management is
Net ETF* inflows already the third-largest player in
the European ETF market, according
$bn
0 10 20 30 to ETFGI, but it too is looking to dif-
ferentiate itself as it expands its US
operations.
Deutsche
Asset
“We will not attempt to compete on
Management vanilla [traditional] index-trackers
in the US. Our focus is on more
sophisticated products,” says Rein-
hard Bellet, head of passive asset
WisdomTree management at Deutsche Asset Man-
agement.
He emphasises the importance of
2015 helping clients understand how to use
BMO these more sophisticated products in
2014 their portfolios.
Providers, says Mr Bellet, must also
be able to quickly read shifts in mar-
* Exchange traded funds and products ket conditions so as to better under-
Source: ETFGI
stand the needs of clients.
FINANCIAL TIMES Monday 1 February 2016
End in sight for emerging market rout?
Optimism Active
managers might be
providing first signs
of bullishness, writes
Madison Marriage
T
he ructions in emerging
markets have been pain-
ful for exchange traded
fund companies with
produc ts heavily
exposed to these regions, but the
active asset management industry
has not been immune either.
Franklin Templeton, Aberdeen
Asset Management and Ashmore are
among the heaviest casualties of the
emerging market rout, with all three
active fund houses suffering big dips
in their share prices in 2015 and sub-
stantial outflows from investors.
But some of these active fund man-
agers have been a lot more vocal than
their passive counterparts in their
attempts to convince investors that
the situation will start to improve.
FTfm Exchange traded funds
Their message of optimism goes as
follows: equity valuations in emerging
economies are so low they are begin-
ning to look appealing; developed
market investors have overreacted to
problems in China that they do not
comprehend; and investors risk miss-
ing handsome returns from an emerg-
ing market recovery if they continue
toavoidtheseregions.
For example, Jan Dehn, head of
research at Ashmore Group, is one of
the loudest advocates of the emerging
market rebound story. “Markets are
massively overreacting at a global
level as far as emerging markets [are]
concerned,” he says.
“Investors and the media are pay-
ing far too much attention to the lat-
est price movements and far too little
attention to fundamentals. The [hid-
den] bodies are not buried in emerg-
ing markets, they are buried in devel-
oped markets.
“Developed markets have had a
great run on the back of [quantitative
easing] purchases,” Mr Dehn says,
but adds that these countries have
Turmoil in Brazil: but some say markets are overreacting
not carried out significant economic
reforms or deleveraging. “The oppo-
site is true for emerging markets, so
this is where I see clear value.”
Mark Mobius, Franklin Templeton
fund manager, also said at the start of
the year: “We are not terribly con-
— Reuters
cerned about growth in China, nor its
long-term investment prospects. We
would dub 2016 projections of 6 per
cent GDP growth [in China] as quite
strong given the size of the economy
has grown tremendously in dollar
terms.
FTReports | 9
“This is another aspect we think
many investors may be missing when
they see growth slowing. The funda-
mentals in China are still excellent.”
Although such comments may
appear self-interested, even active
fund companies that do not have a
strong foothold in emerging markets
are showing signs of optimism.
Edward Bonham-Carter, vice-
chairman of Jupiter, a UK-listed asset
manager that focuses on UK and
European equities, says his company
wants to add to its emerging market
expertise.
“On a 10 to 20 year view, do we
think emerging markets are going to
be a bigger part of world economies
and stock market indices? Yes. And
we’ve been light in this area in terms
of expertise and therefore assets, so
we’re building it up,” he says.
“In the short term [the emerging
market problems have] benefited us,
because we’ve had light exposure ...
but longer term I think emerging
markets are at the attractive end of
the range.”
10 | FTReports
‘A market driven by speculators’
Trends Some consider
the short-term
trading of index funds
to be risky behaviour,
says Attracta Mooney
J
ohn Bogle, the man credited
with creating the first index
tracker fund, is a respected
figure in the investment
community. So much so that
his fans, known as Bogleheads, turn
up to a conference each year in the
hope of hearing him speak.
At last year’s event in October, Mr
Bogle, the founder and former chief
executive of Vanguard, the second-
largest fund house in the world by
assets under management, launched
an attack on exchange traded funds
that raised eyebrows at ETF provid-
ers worldwide.
ETFs, Mr Bogle warned, “have
become the new way to speculate”.
This is happening because ETFs can
be bought and sold at any time unlike
traditional mutual funds — even
those that are index trackers — which
typically only offer daily or even
weekly liquidity.
For a long-term investor like Mr
Bogle, this short-term trading behav-
iour is risky. “[Mr Bogle] believes an
index fund is an investment to buy
and hold for an investment lifetime,
not one to trade at the speed of light,”
says a colleague of the 86-year-old
investor.
Research backs up Mr Bogle’s view,
at least when it comes to small inves-
tors. A study by Goethe University,
Frankfurt, found that most small
investors in ETFs substantially
underperformed the market, typi-
cally because they bought and sold
ETFs too rapidly and at the wrong
time.
“Adopting a buy-and-hold strategy
is more important than selecting bet-
ter ETFs for individual investors,” the
study’s authors wrote.
But figures indicate that short-term
investments in ETFs are common.
The largest ETF in the world, the
SPDR S&P 500, better known as SPY,
experienced trading turnover of
more than 200 per cent in the first
two weeks of this year. In the US, ETFs
often account for 30 per cent of daily
trading volumes.
Peter Sleep, senior portfolio man-
ager at 7IM, a UK wealth manager,
says: “People do use ETFs for specula-
tive reasons.” Some have got burnt by
doing so and certain ETFs, such as
commodity products, encourage
speculation more than others, he
adds.
In fact, a whole host of ETFs exists
whose main function is to allow
investors to take short-term posi-
FTfm Exchange traded funds
tions. These short and leveraged ETFs
— which use derivatives to deliver
returns that are a multiple of the
index they track — enable investors to
trade tactically, says Townsend Lans-
ing, executive director, head of
exchange traded commodities at ETF
Securities. “The investment strategies
around short and leveraged ETFs are
short-term trading.”
Concerns have been raised about
leveraged ETFs, namely that an
investor who remains invested in
these products for more than a day
could find themselves with larger-
than-expected losses.
Ben Seager-Scott, director of invest-
ment strategy at Tilney Bestinvest, a
UK-based wealth manager, says these
products come with more risks. “Lev-
eraged and inverse ETFs are generally
not a good idea for long-term invest-
ment, but can be used to express
short-termviews,”headds.
However, the use of ETFs to specu-
late is not necessarily bad, says Hec-
tor McNeil, co-chief executive at
WisdomTree Europe.
“There is a whole host of reasons
why people trade on a market — there
are opportunities to make money
whether you are a short-term or a
long-term trader. That is really the
choice and the action of the individ-
‘ETFs are just providing ual investor,” he says.
a solution for how Mr Lansing says ETFs allow inves-
tors to express their market views.
investors want to trade’ “I don’t think ETFs change invest-
FINANCIAL TIMES Monday 1 February 2016
ment behaviour. If someone wants to
buy an ETF to buy and hold it’s a good
tool for that. If someone buys it for a
tactical trade, it’s a good tool for that
as well. ETFs are just providing a solu-
tion for how investors want to trade.”
Norm Champ, former director of
the investment management division
at the Securities and Exchange Com-
mission, the US watchdog, and a lec-
turer at Harvard, agrees.
“Personally, I am a buy and hold
guy, but I don’t understand imposing
that view on other investors. If people
want to use ETFs to trade daily, they
should be able to use them that way.”
Others say the focus on the large
daily trading volumes in ETFs misses
an important point.
Although ETFs have traditionally
been substitutes for mutual funds,
they are widely used as a lower-cost
solution to instruments such as deriv-
atives when investors want to take a
long or short position in their portfo-
lio.
“Much of the volume in ETFs is
from large institutions looking to
hedge or neutralise their positions,”
says Lee Kranefuss, executive chair-
man of Source, the $17.6bn ETF pro-
vider.
“Hedging is generally good for
investors — it’s a way of lowering
risk,” adds Mr Champ.
There have also been concerns that
short-term ETF traders try to capital-
ise on potential weak spots in ETFs,
which happened last summer as doz-
ens of the products traded at sharp
discounts to their holdings for a short
period. The argument is that such
behaviour could hit the price of
underlying stocks dramatically.
Industry figures, however, played
down any suggestions the short-term
trading of ETFs is affecting the mar-
ketplace.
Sean Tuffy, head of regulatory
intelligence at Brown Brothers Har-
riman, the US bank, says ETFs are
being used in the way they were
envisaged.
“ETFs were designed to be traded
throughout the day, which is what’s
happening. Overall I think it’s hard to
get too upset that an investment
product is being used for investment
purposes,” he says.
Mr Tuffy adds: “I’m always a bit
mystified by this use of the word
speculation as a code for nefarious
activity. In reality, all investment is a
form of speculation.”
Mr Bogle, however, looks unlikely
to change his stance. He has never
been an advocate of ETFs, even
rejecting the idea of ETFs when he
was running Vanguard, although the
fund house has since embraced the
products. “Too few investors fully
understand the appropriate uses of
ETFs,” he says. “The ETF market is
driven by speculators.”
12 | FTReports FINANCIAL TIMES Monday 1 February 2016

FTfm Exchange traded funds

Money
pours into
smart beta
strategies
In response, providers are
Index strategies coming up with a variety of
strategies that combine these
More providers now factors, in an attempt to offer
offer multi-factor something that will be valua-
ble in all market conditions.
products, writes Investors are pouring
Sophia Grene money into these and other
smart beta products, looking
for a compromise between the
Of those using smart beta
products, 55 per cent had allo-
cated a tenth or more of their
equity portfolio to these strat-
egies, up from 38 per cent a
year earlier.
This money is coming at the
expense of vanilla ETFs track-
ing traditional benchmarks
and active managers.
Index tracker: predicted GDP growth or the
but cap-weighted free cashflow of a company.
indices might Lombard Odier now offers
not be the best four fundamental fixed
approach
Kiyoshi Ota/Bloomberg
income ETFs through ETF
Securities, focusing on global
government bonds, global cor-
porate bonds, European cor-
porate bonds and emerging
market local currency bonds.
Lombard Odier, says it sees no
advantage in using ETFs over
another structure, other than
giving the company “access to
another investor-base”.
Given what he describes as
the industry trend for more
efficient investment, the
growth in smart beta is likely
to continue. Provided, that is,

I
n 2002, quantitative ana-
lyst Rob Arnott set up
Research Affiliates to try
to offer alternatives to the
standard cap-weighted
benchmarks.
Mr Arnott’s key concept was
“fundamental” indexing,
whereby the companies in the
index were weighted accord-
ing to various financial met-
rics, such as earnings per
share. Because this automati-
cally overweighted companies
with healthier finances, he
claimed, it should outperform
the traditional benchmarks
that allocated capital purely on
the basis of size.
Many critics argued this was
merely a value strategy in
fancy wrapping, rather than a
unique insight into the chal-
lenges of index creation, but
this did not stem the rise of
what is now usually called
“smart beta”. This catch-all
term refers to any index strat-
egy that deviates from the cap-
weighted methodology, usu-
ally in an attempt to outper-
form that benchmark in a sys-
tematic way.
Whether Mr Arnott’s was a
systematic value strategy
might be open to debate, but
the disadvantage of his
method, and other so-called
factor-based strategies, such
as momentum or low volatil-
ity, is that none will work in
every market condition. Low
volatility, for example, might
be a good idea when markets
perform as they did at the start
of the year. But when markets
calm and volatility disappears,
the strategy would no longer
be worth the fees.
low-cost, cap-weighted giants
and the more expensive active
strategies.
“These strategies already
existed,” says Chris Mellor,
executive director for equities
product management at
Source, an ETF provider.
“They’re pretty much as old as
investing — we’re not trying to
reinvent the wheel.”
However, although fund
managers may have offered
value, quality, momentum
strategies for many years, they
have always fallen into the
active category, assuming that
it takes expensive human
judgment to identify these fac-
tors. Where ETF providers
hope to have an edge is by
building and tracking indices
based on these factors.
“What’s really new is the
way investors are able to get
access to these factors in a sys-
tematic way without paying
the fees for active manage-
ment,” says Mr Mellor.
Investors are responding
enthusiastically, particularly
The fixed-income
world is coming
around to the
idea of smart beta
in Europe. According to a sur-
vey of asset owners commis-
sioned by index provider FTSE
Russell, 79 per cent of Euro-
pean asset owners have evalu-
ated smart beta, somewhat
ahead of North Americans, of
whom 61 per cent had looked
at the concept.
Matthieu Grignard, global Kevin Corrigan, head of fun- that the products can deliver
head of product development damental fixed income at the risk-adjusted results.
and capital markets at
Amundi ETF, Indexing &
Smart Beta says pension funds
are switching from traditional
passive and traditional active
to smart beta. Those switching
from traditional actively man-
aged funds were disappointed
with performance and looking
for lower fees, he says.
Amundi’s multi-strategy
ETF is available at a cost of 40
basis points, more than the
standard for traditional ETFs,
but considerably lower than
the typical fees for active man-
agement. The product was
developed in response to client
demand, says Mr Guignard,
adding that a single large pen-
sion fund suggested the idea.
Rolf Agather, managing
director of North America
research for FTSE Russell, says
smart beta indices have given
asset owners and their consult-
ants more choice and flexibil-
ity in the tools available for
constructing portfolios.
Such strategies, along with
most money in smart beta, are
all equities-based. But just as
fixed-income ETFs gradually
followed the growth of equity
ETFs, the fixed-income world
is coming around to the idea of
smart beta.
Traditionally bond indices
are constructed on a cap-
weighted basis, which offers
more exposure to issuers with
more debt. The alternative, as
offered by Pimco’s Gladi series,
is to develop a rules-based sys-
tem that takes account of the
issuers’ underlying financial
health, such as a country’s