WORLD BUSINESS NEWSPAPER

MONDAY 8 DECEMBER 2014

ASIA

AI alarmism

FT Seasonal Appeal

Canary Wharf wars

Artificial intelligence fears are

overdone ANDREW MCAFEE, PAGE 11

Syrias crisis is one of the biggest humanitarian

catastrophes of this century BIG READ, PAGE 8

The battle for Londons newest

financial district PAGE 21

1m evacuated
as Philippines
typhoon bites

Briefing
i FCA to review penalties as fines soar
The UK financial regulator is to review its fining
regime amid increasingly anguished cries from
banks over the inexorable rise of penalties. PAGE 17

i Milan boxes clever on traffic congestion

A powerful, slow-moving typhoon

ripped through the central Philippines
yesterday, bringing howling winds that
flattened houses and toppled trees and
power lines in areas still scarred from a
deadly superstorm just over a year ago,
Reuters reports.
Officials confirmed that at least three
people had died due to Typhoon
Hagupit, including a resident on Samar
island, killed by a falling tree.
But Hagupit did not appear to have
wreaked destruction on the same scale
as last years super Typhoon Haiyan, in
part because of an operation to evacuate
1m residents from coastal and landslide-prone areas before the storm hit.

Milan has teamed up with an insurer, the local ATM

transport network and a maker of automotive
black boxes to offer drivers public transport
vouchers if they leave their cars at home. PAGE 17

i Mooted deal lifts antibiotics appeal

A mooted $8bn takeover of Cubist, the US biotech
company, by Merck & Co has highlighted renewed
interest from big pharma in the long-neglected
market for antibiotics. PAGE 17

i Sri Lankan presidents lead withers

A resident of Samar Island battles against floodwater caused by Typhoon Hagupit yesterday

Weather page 16

Ahead of elections, Mahinda Rajapaksa

seems rattled, at least if the outpourings of Sri Lankas state-backed
media provide any indication of their
presidents state of mind. PAGE 4

Francis R. Malasig/epa

i Rescue mission for parched Maldives

Dollars resurgence poses threat

to emerging markets, warns BIS
Currencys strength makes indebted companies vulnerable, say global policy makers
CLAIRE JONES FRANKFURT
SAM FLEMING LONDON

Global financial policy makers have

sounded the alarm about the impact of a
resurgent US dollar on emerging markets, where companies have racked up
large debts denominated in the American currency.
The Bank for International Settlements, known as the central bankers
bank, warned in its quarterly review
yesterday that a prolonged rally in the
dollar could expose financial vulnerabilities in emerging markets by damaging some companies creditworthiness.
The Basel-based organisation added
that there were increasing signs of fragility in financial markets, despite
renewed hopes for economic growth,

pointing to the stress in the $12.3tn US

Treasury market that serves as the bedrock of the global financial system.
To my mind, these events underline
the fragility dare I say growing fragility hidden beneath the markets
buoyancy, said Claudio Borio, the head
of the BISs monetary and economic
department.
The main dollar index measuring
the currency versus its biggest trading
counterparts closed at an eight-year
high on Friday after a US employment
report that showed 321,000 jobs had
been created in November.
A stronger dollar has historically
proved to be a harbinger of turmoil for
the developing world, contributing to
crises in Latin America in the 1980s and
Asia in the 1990s.

Governments have as a result largely

severed their currency pegs to the dollar, weaned themselves off foreign borrowing and bolstered central bank
reserves.
However, companies in emerging
markets have been borrowing heavily
via the issuance of dollar securities.
The BIS said that emerging market
borrowers had issued a total of $2.6tn of
international debt securities, of which
three-quarters were denominated in
dollars.
International banks cross-border
loans to emerging market economies
amounted to $3.1tn in mid-2014, mainly
in US dollars, it added.
Mr Borio said: Should the US dollar,
the dominant international currency,
continue its ascent, this could expose

These
events
underline
the
fragility . . .
hidden
beneath the
markets
buoyancy

currency and funding mismatches by

raising debt burdens. The corresponding tightening of financial conditions
could only worsen once interest rates in
the US normalise.
The report also found that flows of
credit across borders had risen substantially for the first time in three years.
Overseas lending rose $401bn to
$30tn over the second quarter of this
year. The 1.2 per cent annual rise, from
June 2013 to June 2014, was the first
since late 2011, and was accompanied
by more lending to Asian emerging
markets.
Mr Borio described the rise in lending
to China by foreign banks as extraordinary, with outstanding loans to China
doubling between the end of 2012 and
June of this year to $1.1tn.

UN climate proposals cast a cloud over

future of leading oil and gas producers
PILITA CLARK LIMA

Miracle of Chiles Chicago

model fades under Bachelet
Analysis i PAGE 6

Au st ralia
Ch i na
Ho n g Kong
I nd i a
I nd o nesia
Jap an
Ko r ea
Mal aysia
Paki stan
Ph i l ippines
Si n g apore
Tai wan
Th ailand
Vi e t nam

A$6. 00 ( i n c G S T )
RMB25
HK$30
Rup150
Rp37,000
6 30( i n c JC T )
W4,500
RM10.50
Rupee 220
Peso 130
S$5. 50( i n c G S T )
NT$130
Bht140
US$4.50

ExxonMobil and Shell would cease to

exist in their current form in 35 years
time under measures that UN negotiators are considering for a legally
enforceable global climate pact to be
sealed in Paris next year.
The oil and gas such companies produce, and the coal mined by groups such
as Rio Tinto, would have to be phased
out by 2050 in one proposal at UN climate talks in Lima this week that aim to
smooth a path to the Paris deal.
Another option would still allow such
fossil fuels to be used, but only if countries could ensure net zero emissions
by 2050. In other words, all the warming carbon dioxide emissions produced
when fossil fuels are burned would have
to be stored underground or offset
by steps such as planting vast numbers

of trees to absorb the carbon dioxide.

Shell declined to respond directly but
pointed to a speech by chief executive
Ben van Beurden in which he said we
need to temper our expectations of a
zero carbon future because future
demand for energy was so strong and
renewable energy sources were unlikely
to be a realistic alternative to fossil fuels
for many decades.
ExxonMobil pointed to similar arguments on the companys website.
Critics have accused conventional
energy companies of complacency in
the face of the risks to their business
model from a future climate deal. Lord
Browne, the former boss of BP, said last
month that they were ignoring the
existential threat climate change
posed to the industry.
Meanwhile, the Bank of England is
looking into the risks fossil fuel compa-

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17958.79

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3277.38

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6742.84

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3607.25

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4419.48

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24002.64 24004.28
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INTEREST RATES

Dec 5 Nov 28

Dec 5 Nov 28

price

yield

chg

0.38 $ per
-0.23 $ per

1.230

1.247 per $

0.813

99.42

2.32

0.07

1.559

1.566 per $

0.641

106.44

2.02

0.03

0.73 per
0.90 per $

0.789

0.796 per

1.268

102.05

0.78

0.01

101.04

0.39

-0.01

Nov 28 %Week
2067.56

Nasdaq Composite

FTSE All World $

9 770307 176616

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THE FINANCIAL TIMES LTD 2014

No: 38,722

Call for urgency page 3

World Markets

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nies might pose to financial stability if

the worlds proven coal, oil and gas
reserves turned out to be unburnable.
The proposals being discussed in
Lima underscore the influence of an
extensive assessment issued in stages
over the past 15 months by scientists in
the UNs Intergovernmental Panel on
Climate Change, the leading global
warming authority. Its latest report says
emissions will have to eventually fall to
near zero if the world is to avoid more
than 2 degrees Celsius of warming from
pre-industrial times, a threshold the
IPCC says it could be risky to breach.
Dr Chris Field, a co-chair of the IPCC
report on the impacts of climate change
who is discussing the assessment with
delegates, said: Its exciting to see countries grappling with the honest picture
of the magnitude of the challenge.

121.415 118.685 per

0.802 US Gov 10 yr
0.639 UK Gov 10 yr

1.256 Ger Gov 10 yr

149.303 147.959 Jpn Gov 10 yr

87.178 86.962 US Gov 30 yr

0.81 per 189.318 185.866 index
93.986 93.953 $ index
95.743 94.586 Ger Gov 2 yr
0.30 index
1.202
1.201 SFr per
1.524 1.509
0.39 SFr per
0.67 COMMODITIES
Fed Funds Eff
Dec 5
Nov 28
%Week US 3m Bills
1.06
3.90 Oil WTI $
-0.01 Oil Brent $
-0.26 Gold $

65.64

66.10

68.69

70.02

1194.00

1182.75

-0.70 Euro Libor 3m

-1.90 UK 3m
0.95 Prices are latest for edition

100.34

2.98

0.04

100.40

0.00

0.00

price

prev

chg

0.09

0.09

0.01

0.03

-0.02

0.06

0.06

0.00

0.55

0.55

0.00

Data provided by Morningstar

The vulnerability of isolated regions was exposed

by an accident at a desalination plant that left Mal,
in the Maldives, with very little fresh water. PAGE 3

i Nato worried by Russian propaganda

National intelligence agencies in the alliance point
to what they say is alarming anti-Nato and antiEuropean rhetoric in the Russian media. PAGE 2

i Dalian Wanda sets $3.9bn IPO target

Chinas biggest commercial property group will
today seek to raise up to $3.9bn through an initial
public offering in Hong Kong. PAGE 19

i Uber under fire over assault claims

Uber, the taxi-hailing service, was on the defensive
in India after a woman in New Delhi claimed she
was sexually assaulted by a driver hired through the
popular app. PAGE 18

Datawatch
Real wages
Rebased (2008=100)

110
100
90

Germany
US
UK
Spain
2008 09 10 11 12 13 14
Source: Thomson Reuters Datastream

80
70

Real wages in
Germany and
the US have
grown slightly
since the
financial crisis,
while in the UK
they have fallen
7.5 per cent.
But Spain has
really suffered,
with real wages
down by a
quarter.

FINANCIAL TIMES

Monday 8 December 2014

INTERNATIONAL
GLOBAL INSIGHT

International tension

Putin causing problems, says Merkel

German leader voices
concern over unease in
Moldova and Georgia
STEFAN WAGSTYL BERLIN
ROMAN OLEARCHYK KIEV

Angela Merkel, German chancellor, yesterday delivered a sweeping criticism of

President Vladimir Putin over the
Ukraine crisis, warning that Russia was
creating problems in Moldova and
Georgia, and trying to make some Balkan states politically and economically
dependent.
Ms Merkels comments, in a German
newspaper interview, were published
just as Frances President Franois Hollande was meeting Mr Putin in an effort
to defuse tensions.
Asked about the risk of war between
Russia and the west over the Baltic

states, where Moscow has in recent

weeks unnerved residents with military
flights and other aggressive acts, the
chancellor struck a reassuring tone.
The question of war in the Baltic
states does not arise, she told Die Welt
am Sonntag newspaper. Nevertheless,
Article 5 of the Nato treaty, that is the
obligation of mutual support, applies to
all allies.
The interview was published yesterday, a day after Mr Hollande made an
unannounced stop in Moscow for a twohour meeting with Mr Putin at Vnukovo
airport. The two leaders emerged saying
they believed they could help resolve
the Ukraine crisis.
Paris said yesterday that Mr Hollande
later spoke on the telephone with Ms
Merkel and Ukraines President Petro
Poroshenko.
Few details of the France-Russian
encounter were released but Mr Putin

said afterwards: The discussion we

have [ . . . ] is producing some positive
results.
The contrast between the French and
German approaches reflects the competing impulses within Europe as member states struggle to deal with Mr Putin.
Even within national governments,
there is a debate about whether to take a
softer or harder line against Moscow to
persuade Mr Putin to curb his support
for separatist rebels in eastern Ukraine.
Mr Hollandes visit was also shadowed
by the added drama surrounding two
warships the French have so far refused
to deliver to Moscow because of the crisis an awkward stance for Paris that
could force the government to repay
Moscow and also hurt its reputation as a
military supplier.
Both Moscow and Kiev made comments over the weekend about holding
talks in Minsk tomorrow to try to

Question of
war in the
Baltic states
does not
arise
Angela Merkel

achieve a definitive ceasefire after

repeatedly violating a pact agreed in
September.
Even as he acknowledged a preliminary agreement for the Minsk talks, Mr
Poroshenko warned that Ukraine
remained ready to repel fresh attacks
from the Russian-backed separatists.
More than 4,300 people have died
since the conflict erupted last spring,
including more than 1,000 since early
September.
Kievs defence ministry reported
further clashes yesterday, after the
Organisation for Security and Co-operation in Europe, the security body running an observer mission in Ukraine, on
Saturday reported a column of more
than 100 unmarked military vehicles
driving from the Russian border to
Donetsk.
Additional reporting by Adam Thomson
in Paris and Kathrin Hille in Moscow

Countering Russia. Mind games

Nato battles back in information war

Kremlin success at confusing
the western public has left the
alliance trying to catch up
SAM JONES LONDON

A casual consumer of Russian media

might conclude the western Ukrainian
city of Lviv, one of the strongholds of the
countrys pro-EU uprising, has been
over-run by violent fascists.
So a video recently uploaded to
YouTube will prove disappointing.
Called Where are all the fascists in
Lviv?, it features a correspondent walking the citys peaceful streets, interviewing slightly bemused decidedly unmilitant shoppers.
The online video was produced and
published by Nato. It is a modest
weapon the alliance is deploying as it
seeks to fight back against a Kremlin
information campaign that is posing a
fresh worry for western policy makers
alongside Russian bombs and espionage.
Russia is weaponising information in
this crisis, says James Appathurai, the
alliances deputy assistant secretary
general for political affairs. They are
reaching deep into our own electorates
to affect politics.
National intelligence agencies in the
alliance point to what they say is alarming anti-Nato and anti-European rhetoric in the Russian media. The Kremlin
has been particularly masterful, they
believe, at using a web of disinformation
to generate doubt internationally over
its huge military support for separatists
in Ukraine.
The fear among Nato officials and
western policy makers is that the Russian campaign could fatally fracture an
already fragile European consensus to
maintain tough economic sanctions
against Moscow over Ukraine.
In Germany, for example, Chancellor
Angela Merkel is contending with a
large faction sympathetic to Russias
President Vladimir Putin, whether for
business or historical reasons. Other
EU members also appear vulnerable to
the Kremlin efforts to sow discord, particularly the impoverished former

Online video
features
interviews with
bemused
shoppers in the
peaceful streets
of Lviv (top)
Dreamstime

Soviet countries in southeast Europe.

Information warfare is the spearhead of almost everything Russia is
doing, says Jonathan Eyal, international director at the Royal United Services Institute. Nato planners accept that
Mr Putin is not mad, says Mr Eyal, and
therefore unlikely to rush headlong into
an armed conflict by, for example, sending tanks into the Baltics. We are talking about dealing with a long-term propaganda campaign instead.

A private bank unlike

any other.

Delegations from across Europe have

b
begun
meeting at Natos headquarters
iin Brussels and in national capitals to
discuss the challenge. The Lviv video
d
what Russian agitprop practitioners
w
would call pokazukha, or a propagandisw
ttic publicity stunt is one of the fruits of
tthose meetings.
It has garnered 40,000 views so far.
Most normal Nato video uploads manM
aage fewer than 2,000. Nato insiders say
more such material should be expected
m
in
n the future.
There is even talk of reviving cold war
id
deas, such as the UK Foreign Offices
In
nformation Research Department, a
ssecretive operation to feed news of
Soviet misdeeds to sympathetic journalists. It was shut in 1977.
However, even national governments
once well-versed in Kremlinology are
still bewildered by the threat.
The recent expansion into Britain of
Moscows international news channel
RT, or Russia Today, has prompted
national security discussions at some of
the highest levels in the British government, say officials. Yet policy makers
are at a loss when it comes to proposals

FINANCIAL
N
TIMES
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Tony
Barber

Ageing Europe needs

new blood to restore
its economic health

n a Europe defined by ageing societies, shrinking

workforces and stagnant living standards, immigration is both a partial economic solution and a political
problem in its own right. Immigrants and their effect
on labour markets and welfare systems are sure to be
electrically charged themes in next years British general
election, and will shape political debate elsewhere, from
the Nordic states to Greece.
A European Commission report includes forecasts for
immigration and population growth up to 2060 that look
set to add fuel to these fires. That these estimates are the
work not of politicians with axes to grind but of non-partisan EU specialists, serves in principle to enhance their
credibility.
Data released on November 27 by Britains Office for
National Statistics show that net migration to the UK
surged to 260,000 in the 12 months ending June 2014. This
unexpectedly high figure emerged after the anti-EU, antiimmigrant UK Independence party stunned the ruling
Conservatives by scoring its second parliamentary byelection victory in less than two months.
Latest opinion polls suggest Ukip may capture 14-18 per
cent of the vote and seize third place in the next general
election. Rightly or wrongly, this rightwing populist party
takes the view that one of its trump cards will be public
unease with perceived high immigration levels.
Did the commissions report, which predicts that net
migration into the UK up to 2060 will amount to more
than 9m people, slip beneath Ukips radar? If so, perhaps it
was because the study goes under the flavourless title of
The 2015 Ageing Report:
Underlying Assumptions
The EU will in
and Projection Methodologies. Be that as it may, 2060 have only two
the commissions foreworking-age people
casts deserve attention.
Net migration into the for every person
EU up to 2060 will total
aged over 65
55m people, the report
predicts. Almost 70 per
cent will go to just four of the EUs 28 member states: 15.5m
to Italy, 9.2m to the UK, 7m to Germany and 6.5m to Spain.
If these forecasts are accurate, the political influence of
immigration will reverberate well beyond the UK. Support
for Italys Northern League, an anti-immigrant party close
in spirit to Ukip, is spreading south of its strongholds above
the Po valley. Anti-immigrant movements are less visible
in Germany and Spain, but they are fixtures of the political
scene in Austria, France and the Netherlands.
The commission makes no predictions about where the
tens of millions of immigrants will come from. But it points
out Africas share of the world population is forecast to rise
to 28 per cent in 2060 from 15 per cent in 2010. It predicts
that Europes share of the total will fall to 5 per cent from
7.2 per cent, despite net migrant inflows.
Overall, the EUs population is forecast to rise to 523m in
2060 from 507m last year. Of particular interest are the
predictions for individual countries. The UK will become
the EUs most populous country, rising to 80.1m from
64.1m. France will go up to 75.7m from 65.7m, but Germany will decline to 70.8m from 81.3m.
If the UK stays in the EU, and if Scotland does not secede,
the British will have the greatest relative weight in the bloc
to be translated, for example, into more European Parliament seats. However, this extra weight will be thanks
partly to the arrival of millions of immigrants to UK shores.
Various assumptions for each EU member state underlie
the commissions estimates about birth rates, life
expectancy and the evolution of labour markets. Arguably, the reports most important conclusion is that European societies are ageing so fast that, even with high net
inward migration, the EU will in 2060 have only two working-age people for every person aged over 65, instead of
four working-age people as is the case now.
Such a sobering estimate makes it clear why immigration seems more of an economic necessity than a political
choice. Perhaps Ukip should arrange, over the next four
months, for a copy of the commissions report to be
dropped on every British voters doorstep.
Editorial Comment page 10

Generational strain

Political upstart challenges Germanys greying leadership

STEFAN WAGSTYL BERLIN

30 global locations www.efginternational.com

to deal with the threat they perceive,

particularly when no laws have been
broken.
Nato is seeking to try to redress a Russian effort that it says is intended to
confuse, divert and divide.
The alliance has also put together a
website called setting the record
straight. It is available in Russian,
Ukrainian, English and French and fleshed out with dozens of documents,
statements, videos and images. One section lists 25 myths about the alliance
coupled with factual rebuttals.
Perhaps most significantly, the alliance has begun to co-ordinate messaging among its members, a senior official said.
While Nato has joined the information war, many in the alliance acknowledge its efforts are still in their infancy,
particularly when set against a vast Russian campaign.
Mr Appathurai says: There are 20 or
so people in Natos public diplomacy
team who are at work trying to counter
an organised, multi-faceted, wellfunded Russian operation that is going
on across the world.

EUROPE

Jens Spahn is known in Germany as a

young politician in a hurry. This week he
plans to use the annual party conference
of Chancellor Angela Merkels CDU
party to challenge his elders.
The 34-year-old is standing for a place
on the CDUs ruling council against a
party stalwart, the 53-year-old health
minister Hermann Grhe, in a contest
that is crystallising the generational tensions in German politics.
Mr Spahn has cast his bid as a chance
for youth in a party dominated by older
members and a country where older
voters have a disproportionately big
voice.
It is the job of politicians to make the
right decisions so that the younger generation will have the same opportunities
as their parents and grandparents, he
says.
His push comes at a time when the
CDU-led government is implementing
the biggest handout to older voters in
years, including a cut in the pension age
to 63 for certain long-serving workers
and extra pension rights for older mothers. Mr Spahns candidacy for one of the

seven elected seats on the CDUs 16member body, which features Ms Merkel and other party leaders, is itself a
challenge to the status quo. So well do
CDU managers usually organise party
affairs that the last contested ruling
council vote was in 2008.
It should be no surprise that Mr Spahn
is jumping into the breach. He was a
young Christian Democrat at 15 and an
MP at 22. An economic liberal and
openly gay Roman Catholic, he has combined a platform of lower taxes and less
red tape with support for same-sex
marriage.
Knowing how much the party and
Ms Merkel value consensus, he has
avoided presenting himself as a troublemaker. Speaking of intergenerational
issues, for example, he says: It is also
important for older people that something is left for their children and grandchildren. His election bid is backed by
Wolfgang Schuble, the 72-year-old
finance minister.
Mr Spahn insists Germany is doing
well under Ms Merkel but the party
needs to consider what it will do in 2021
and that is the discussion I want to lead
in the CDU.

The numbers bear him out. In last

years parliamentary elections, 43 per
cent of CDU voters were over 60, the
most of any party, and only 16 per cent
were under 35. Social democrat and farleft Linke voters were only slightly more
youthful. Of the big parties, only the
Greens stand out, with 25 per cent of
their votes from the under 35s.
Due to falling birth rates, the old outJens Spahn
has a platform
of lower taxes
and less red tape
with support for
same-sex marriage

number the young in Germany, with

twice as many people over 60 as under
30. The seniors are far more likely to
vote with a participation rate of about
80 per cent in the 2013 election. Little
wonder that politicians distribute
pensions increases.
For Mr Spahn, it is not just about
social fairness but about economic
change. He says there is too little debate
about Germanys biggest challenge
the digital revolution spearheaded by

the younger generation. How much

immediate resonance this will have outside the conference hall may be moot.
With Ms Merkel in charge, the country
has weathered the global financial crisis
relatively well. Why worry about politics, ask many young Germans? Indeed,
there has been barely a peep of protest
from young voters so far about the pensions reforms.
The intergenerational conflicts of
Germanys postwar past, notably in the
1960s and 1970s when many youngsters
appalled by their parents politics joined
radical groups, have faded.
Young people today have close links
with their parents. They often rely on
parents to get money and jobs, says
Klaus Hurrelmann, a professor at Berlins Hertie School of Governance, who
believes there has been no emotional
conflict between generations for more
than 20 years. But the stage for such a
conflict may be set with an expected
mushrooming of pension and healthcare costs. Politicians will have to
respond, Prof Hurrelmann says.
Mr Spahn may be a bit ahead of his
time. But demography appears to be on
his side.

Monday 8 December 2014

FINANCIAL TIMES

INTERNATIONAL
Lima conference

Call for urgency in climate talks as oil tumbles

Fear lower prices may
encourage nations to cut
renewables investment
PILITA CLARK LIMA

The tumbling price of oil underlines the

urgency of agreeing an international
global warming treaty, the minister
presiding over this weeks UN climate
negotiations in Lima has warned.
The price of oil can create difficulties
in this process if we dont move quickly,
said Manuel Pulgar-Vidal, the Peruvian
environment minister in charge of the

two-week UN conference. The meeting

of delegates from more than 190 countries opened today as oil prices hit a fiveyear low after Opec nations decided not
to cut production.
A prolonged dip in prices has the
potential to encourage the use of petrolguzzling cars and other sources of
greenhouse gases that countries aim to
curb in a global climate deal in Paris at
the end of next year.
Low crude prices could also put pressure on countries to cut investments in
renewable energy generation and lowemission projects, Mr Pulgar-Vidal said.
That makes it all the more important

for Lima to set the ground rules for the

emissions-cutting pledges each country
is due to make before the Paris meeting,
he added.
They [the pledges] are a mechanism
that can avoid any change in what the
country has already agreed, even if the
oil price changes, Mr Pulgar-Vidal said.
UN climate official Christiana
Figueres played down any suggestion
that low prices could lead to cuts in
renewable energy investments.
Were all old enough to know that oil
prices go up and down, she told reporters. The fact that oil prices are so
unpredictable is exactly one of the main

reasons why we must move to renewable energy, which has a completely

predictable cost of zero for fuel.
Some energy analysts say the effect of
lower oil prices on emissions is likely to
differ around the world.
Lower oil prices feed through into
higher demand much more quickly in

Energy companies have to

diversify. They have been
far too slow . . . Theyve
been missing the boat

the US than anywhere else as retail

prices there are much more exposed to
the wholesale price, said Mark Lewis of
Kepler Cheuvreux, a European financial
services company.
Overall, I dont think lower oil prices
will have a sustained, meaningful
impact on emissions as we expect prices
to rebound in the second half of next
year, although we think they could go
lower before that.
In Lima, another development in the
energy sector this week provoked
almost as much speculation as oil
prices: the move by Germanys biggest
power utility Eon to spin off its fossil fuel

Interview. Gina McCarthy

and nuclear generation business and

focus on renewables.
Niklas Hohne of the New Climate
Institute research group said Eons
decision was a clear sign of the result of
Germanys Energiewende switch to
renewables. Energy companies have to
diversify, he said. They have been far
too slow in the past. Theyve been missing the boat.
Ms Figueres said Eons move was
likely to be followed by other energy
companies as boards began to understand the threat to their assets posed by
policies to reduce greenhouse gas emissions.

Indian Ocean

US watchdog chief backs China accord

Head of EPA brushes away
Republican concerns that
agreement is too one-sided

Neighbours
rally to help
Maldives in
water crisis
VICTOR MALLET NEW DELHI

BARNEY JOPSON WASHINGTON

The US environmental watchdog has

defended a climate deal with China that
Republicans have attacked as onesided, saying both Beijing and Washington will have to make difficult adjustments.
The worlds two biggest greenhouse
gas polluters signed the agreement to
curb emissions last month, but Republicans say it imposes too many obligations on the US and too few on China.
Gina McCarthy, head of the US Environmental Protection Agency, rejected
the criticism, saying Beijings commitment to ensure Chinese emissions peak
by around 2030 demands that the central government takes immediate
action to pull reluctant provincial governments into line.
They are going to have to make really
difficult adjustments to their entire economic structure and policy structure to
be able to make that happen, she said in
an interview with the Financial Times.
This is a huge challenge for them and
its one I certainly never envisioned they
would embrace.
I think people who are unfamiliar
with [the US-China deal] may look at it
as being disproportionate. I dont think
so.
Her comments highlight how efforts
to tackle global warming depend partly
on the worlds two largest economic
powers managing tensions between
central and regional governments.
Beijings weak environmental
bureaucracy faces constant battles with
local leaders who have historically been
told to prioritise economic growth
above environment concerns, political
analysts say.
Ms McCarthy, who was appointed in
2013 to help make curbs on climate
change part of Barack Obamas legacy as
president, faces her own regional challenges at home.
Her agency is being sued by 12 US
states that oppose plans to cut greenhouse gas pollution from the power sector, which accounts for 40 per cent of
the countrys emissions. A total of 17
state attorneys-general have declared
the proposals illegal.
The regulations are central to the USs
ability to meet its own commitments to
emit 26-28 per cent less greenhouse gas
in 2025 than it did in 2005.
But energy companies and industry
groups say the EPA chief is forcing jobkilling changes in the way the US generates its electricity by waging a war on
coal. Their Republican allies have
vowed to thwart her once they take control of Congress in January.
Ms McCarthy said that given the costs
of climate change whose danger to
property and infrastructure was thrown
into sharp relief by Superstorm Sandy in

The vulnerability of ever-growing

populations in isolated regions was
exposed at the weekend by an accident
that left Mal, capital of the Maldives in
the Indian Ocean, without water.

McCarthy sees no need

for political division

A fossil-fuel
power plant in
the US. Ms
McCarthy has
been accused by
energy
companies of
waging war on
coal Luke
Sharrett/Bloomberg

Gina McCarthy, 60, says climate

change should not be a divisive
political issue and points to the
evidence of her own career to make
the point.
Before joining the Environmental
Protection Agency as an assistant
administrator in 2009, she worked as a
state environmental regulator and five
of her six governor bosses were
Republicans.
Among them was Mitt Romney, then
governor of Massachusetts. There
isnt a Republican or a Democrat that
doesnt want clean air or clean water,
says the straight-talking EPA chief in
her strong Boston accent.
In 2013 she was appointed to the
EPAs top job. Earlier in life she studied
social anthropology at the University
of Massachusetts and once said: The
study of primitive culture was the best
education I could have for working in
government.

2012 the most expensive thing the US

could do was nothing. This isnt about
losing our competitive edge, its about
gaining it.
Speaking from a sofa in her capacious
wood-panelled office amid a flurry of
environmental diplomacy the latest
round of UN climate negotiations are
under way in Lima she did not use the
language of heavy-handed statism.
Instead, she talked about cost efficiencies and market logic.
The EPA was not a bully pushing companies around, she said. It is more like
an usher, using its rules to signal
where the energy market is heading: to a
low carbon system built on renewable
power and other sources that do not
belch out planet-warming carbon
dioxide.
What EPA always tries to do is to
make sure that the costs [caused by carbon and other pollutants] shouldnt get
lost in business decisions and shouldnt
get lost in our government decisions,
she said.
A small number of big companies,
she noted, were already making longterm decisions that assumed CO2
emissions would carry a price in the
future.
What is the matter with government acting like a business
and incorporating those same

This isnt
about
losing our
competitive
edge, its
about
gaining it
Gina McCarthy,
below

choices, those same costs? she

said. Isnt that what people want us to
do?
Ms McCarthy talked most enthusiastically about renewable energy. She
noted that since Mr Obama took office,
US use of wind power had tripled and
solar generation had increased 10-fold.
Between them, however, the two energy
sources respectively produced only
4 per cent and 0.2 per cent of the countrys electricity last year.
The EPAs climate plans will spur
more investment by signalling that
renewables have a place in the future,
said Ms McCarthy. Were regulating to
provide certainty to markets.
States have an opportunity to envision [a] future thats not bounded by
capital expenditures we made 40, 50
and 60 years ago, she added. It
should be: where are the jobs today
and tomorrow? Not: where were
the jobs 60 years ago?
The watchdog has until June
2015 to finalise the power sector
rules.
Asked if any changes she makes in
the months to come could please
Republican opponents, she said: If
theyre interested in protecting folks
from climate change and reducing
pollution and keeping the economy
growing, they ought to.

Neighbouring India has responded to

urgent pleas for help from Mal and
begun sending hundreds of tonnes of
drinking water both by military transport aircraft and by ship to supply the
city. China and Sri Lanka quickly followed suit. Delhi also sent spare parts
and engineers to help with repairs.
The crisis began when a fire damaged
cables and controls at Mals only desalination plant, leaving 100,000 inhabitants, about a third of the countrys population, without water.
President Abdulla Yameen, who was
obliged to return home from a private
visit to Malaysia, urged people to
remain patient and united, while
working with the government to resolve
the national crisis brought on by the fire
that broke out at the Maldives Water
and Sewerage Company.
The densely populated group of more
than 1,000 atolls south west of Sri Lanka
and India, has taken off as a tourist destination and scuba-diving centre since
the 1970s, and tourism accounts for
about a third of gross domestic product.
But the coral islands and reefs on
average the land is just 1.5m above sea
level are vulnerable to climate change
and dependent on imported resources
such as food and water. The mostly
Muslim population has been growing
fast and already exceeds 300,000.
In 2009, Mohammed Nasheed, then
president, held an underwater cabinet
meeting in scuba gear to publicise the
dangers of global warming and rising
sea levels to his low-lying country.
Like many cities in the Gulf states,
Mal makes its water supplies through a
costly and energy-intensive process of
distilling seawater. Another method of
desalination is to force water through a
membrane in reverse osmosis plants.
India also sent navy ships with fresh
water supplies and reverse osmosis
equipment to the islands.
China, which is competing with India
for influence in the Indian Ocean, said
yesterday it was sending a military
vessel with 960 tonnes of water and had
sent 20 tonnes of bottled water on two
civilian flights on Saturday.
According to local media in Mal, the
government has set up water distribution centres. Large queues formed to
allow people to receive two 1.5 litre bottles of drinking water per person.
Maldivian Democracy Network, a
human rights group, criticised the governments preparedness, calling for it to
learn the lessons of the accident and
come up with a back-up plan for Mal
and other islands.

Health crisis

Pentagon joins forces with Mekong region states to combat drug-resistant malaria
MICHAEL PEEL BANGKOK

The US military is throwing its weight

behind a campaign to prevent drugresistant malaria spreading from
southeast Asia to Africa and triggering
an international health crisis.
The Pentagon has joined forces with
countries across the Mekong region in
an effort to staunch a strain of the mosquito-borne disease that sprang up in
remote and conflict-prone regions and
is now lapping against the India border.
Health experts, including a US admiral, will meet in Washington today for a
conference to tackle a quiet menace that
could put millions of people at risk,

debilitate economies and undo the gains

that have been made in the fight against
malaria over the past decade.
Efforts to control malaria globally
are threatened by whats going on in the
Mekong region, said J Stephen Morrison, senior vice-president at the Center
for Strategic and International Studies,
the host of todays meeting.
Some of these areas can only be
accessed by the armed forces, so its not
going to be possible to get control over
the spread of resistance without an
active military contribution and co-operation.
Global attention has focused this year
on the Ebola crisis in west Africa but the

Washington conference is a reminder of

one of the most enduring public health
threats facing the developing world.
A multibillion-dollar international
effort has reduced the number of deaths
from malaria since 2000 by 42 per cent,
but the disease remains one of the
worlds biggest killers, responsible for
627,000 deaths in 2012 mostly among
children in Africa.
The World Health Organisation has
warned that the progress of the past 15
years would be imperilled with dire
consequences if the drug-resistant
strain of the disease spreads beyond
southeast Asia.
Rear Admiral Colin Chinn, US Pacific

command surgeon, and Major General

Vu Quoc Binh, director-general of the
military medical department of the
Vietnam Peoples Army, are due to
attend todays meeting, along with civilian representatives from the anti-malaria programmes of Thailand and
Myanmar.
The US Pacific Command and the US
armed forces health surveillance centre
met representatives from six southeast
Asian partner countries in Cambodia in
August, in a joint initiative with organisations including the Global Fund to
Fight Aids, Tuberculosis and Malaria,
the Bill and Melinda Gates Foundation
and the World Health Organisation.

Military forces in the Mekong region

are also seen as crucial in the fight
against drug resistance, both because
they have the logistics to reach the
remote areas where the mutating
plasmodium parasite is flourishing
and because soldiers themselves can
potentially spread resistance in their
own countries and on UN missions overseas.
The militaries are very important
because they are big potential vectors of
resistance, as are Chinese construction
workers and so on, said Nicholas
White, chairman of the Wellcome Trust
Southeast Asian Tropical Medicine
Research Units.

Resistance to the main artemisinin

group of malaria treatments, which
are derived from a Chinese grass used
in traditional herbal medicines,
emerged more than seven years ago in
Cambodia.
Experts say the latest bout of resistance is the more serious because there is
no treatment in sight.
Global health funders have responded
by launching a programme to eliminate
falciparum malaria, the lethal form of
the disease, in Mekong region hotspots,
although the obstacles to doing so are
large.
Additional reporting by Andrew Ward in
London

FINANCIAL TIMES

Monday 8 December 2014

INTERNATIONAL

Sri Lanka president looks

rattled as poll approaches

Israel elections

Parties discuss joining

forces to oust Netanyahu
JOHN REED JERUSALEM

Rising prices and unpopular leadership style are hurting Rajapaksa

JAMES CRABTREE COLOMBO

Mahinda Rajapaksa seems rattled, at

least if the outpourings of Sri Lankas
state-backed media provide any indication of their presidents state of mind.
Having called a snap election last
month, Mr Rajapaksa looked like he
would cruise to a third term. The south
Asian islands economy is purring along,
with growth near 8 per cent this year.
Inflation and unemployment are low.
Mr Rajapaksa is still admired for his
2009 triumph over Tamil separatists in
Sri Lankas civil war. Even his personal
astrologer is said to have judged an early
poll auspicious.
These predictions have proved far
from accurate. Defections have hit the
ruling party in recent weeks. The opposition appears to be getting its act
together. In response, governmentcontrolled media have stepped up their
rhetoric: Mr Rajapaksas opponents are
simply acting as pawns in foreign conspiracies that seek to destabilise this
country, as one government minister
put it.
Such fanciful talk aside, the election
on January 8 will be watched abroad.
The island is often described as an
important swing state in an era of
Asian geopolitical competition, its loyalties divided between east and west.
The US is gearing up to censure Sri
Lanka again at the UN early next year
over its lackadaisical approach to investigating allegations of wartime atrocities. Neighbouring India, meanwhile,
frets about its deepening ties to China,
which has bankrolled a postwar infrastructure boom.
Both Washington and New Delhi may
therefore quietly favour change, a prospect analysts now say is possible. This
looks like a real contest, says Paikiasothy Saravanamuttu of the Centre for
Policy Alternatives think-tank in
Colombo, the capital. They arent as
popular as they thought and so it will be
a close-run thing.
Three factors explain the unexpectedly tight race, starting with the economy. Sri Lankas growth is undeniably
impressive, as are the many roads, ports
and rail lines that now dot the island.
But voters also complain about costly
staples, including food and cooking fuel,
while accusations of government corruption abound.
Long derided as feckless and fragmented, a resurgent opposition is the
second factor. Its parties have managed
to unite behind Maithripala Sirisena, a
minister who defected unexpectedly
from Mr Rajapaksas government in
November. Rural and plain-spoken, Mr
Sirisena appeals to the same voters in Sri
Lankas majority Sinhalese Buddhist
heartlands who propelled Mr Rajapaksa
to victory in 2010, making him a formidable opponent.
Behind these there lies a third factor,

Israels centrist and left-leaning parties

are in early talks on joining forces in an
effort to deny Benjamin Netanyahu a
fourth term as prime minister after
next years snap election.
Labour, Israels largest centre-left party,
has approached Tzipi Livni, the former
justice minister, offering to merge with
her small centrist Hatnua party and run
on a joint ticket in the March 17 vote,
forming what they hope would be the
core of a new coalition.
We have to create a big coalition
against Netanyahu after this election
a coalition that says no to Bibi, said Stav
Shaffir, a Labour MP, on Sunday.
Former finance minister Yair Lapids
centre-right Yesh Atid is also in talks
with Ms Livnis party and others to position itself in a future government that
would exclude Mr Netanyahu.
All of the players outside of the right
recognise that there is a need to unseat
Netanyahu, said Dov Lipman, a Yesh
Atid MP. We believe that Yair Lapid is
best positioned to be the next prime
minister and create that coalition, given
the fact that hes right in the middle of
the political map.
Mr Netanyahu sacked Mr Lapid and
Ms Livni last week after feuding with
them over economic and security policies and a controversial bill declaring
Israel a Jewish state, accusing them of
seeking to mount a coup against him.
The move ended what will have been
one of the briefest government terms in
Israeli history.
The house committee of Israels Knesset will formally meet today to approve
the parliaments dissolution, paving the
way for the vote. The election comes at a
time of rising tensions in Israel after the
conflict with the Palestinians escalated
into violence in last summers war in the
Gaza Strip and a recent bout of deadly
unrest in Jerusalem.
Mr Netanyahu, whose personal popu-

larity rating has fallen sharply in polls

taken since the Gaza war, is seeking to
shore up his own alliances on the right.
Opinion polls indicate that the prime
ministers rightwing Likud party will
gain the largest number of seats in the
election, followed by the far-right Jewish Home party of Naftali Bennett, the
economy minister.
However, a recent poll found that 60
per cent of Israelis surveyed did not
want Mr Netanyahu as their next prime
minister. Mr Netanyahu faces a potential leadership challenge from inside
Likud in a party primary scheduled for
January 6.
The prime minister, a wily political
operator, has tacked to the right as his

All of the players outside

of the right recognise
that there is a need to
unseat Netanyahu
coalition with Yesh Atid and Hatnua
splintered in recent months and he
faced criticism from Likud hawks
opposed to any peace deal with the
Palestinians. The most recent round of
US sponsored peace talks collapsed in
April.
Speaking at a conference in Washington this weekend, Mr Bennett said he
and Mr Netanyahu had agreed to refrain
from attacking each other during the
upcoming campaign and that they
intended to form a strong national
bloc after the vote.
Centrist and leftist parties in Israel
have previously tried and failed to band
together, most recently in the lead-up to
the January 2013 election.
Moshe Kahlon, a former communications minister who led a popular reform
of the mobile phone industry, is
expected to emerge as a new middle-ofthe-road political force, with a projected
13 seats in the 120-seat Knesset.

Environment Mayor of Paris

vows to ban diesel vehicles
ADAM THOMSON PARIS

Mahinda
Rajapaksa,
on a visit
to Israel, above,
and with Chinas
President Xi
Jinping in
Colombo, below,
is favourite to
win the election
Gali Tibbon/AFP/Getty

namely an antipathy towards Mr

Rajapaksas style of government. In particular, frustration has grown over his
family-dominated regime, where his
brothers and eldest son hold powerful
posts.
The old guard in the presidents
party has been cut out of the loop and,
frankly, also the loot. And they seem to
have had enough, says one western diplomat of recent defections. Instead, the
opposition has backed plans to scrap Sri
Lankas presidency, promising to
reintroduce a British-style parliamentary democracy within 100 days of
victory.
Achieving that goal means first beating Mr Rajapaksa, which will not be
easy. A folksy politician and formidable
campaigner, posters bearing the presidents smiling face already beam down
from road junctions across the country.
A recent giveaway budget, packed
with promises of lower taxes and cutprice motorcycles, could win back some
voters, too.
While most analysts say Mr
Rajapaksa remains favourite to win, the
electoral arithmetic still looks challenging. With little support among the

Business Opportunities
Readers are strongly recommended to take appropriate professional advice before entering into obligations.

There is
a serious
concern
about what
happens if
they lose
Rajith
Tennakoon

islands disgruntled Tamil and Muslim

minorities, the president must win
handsomely among the Sinhalese, who
make up two-thirds of its population of
21m.
Loyalist say voters will ultimately
recognise Sri Lankas progress, which
will see it reach middle income status
next year, with per capita gross domestic product rising above $4,000.
Concerns that the regime might cling to
power in the event of a defeat are
dismissed.
Sri Lanka has had several recent
occasions when its government has
changed, says Ajith Cabraal, head of
the central bank. Every time we have
seen it, it has been a smooth transition,
However, other people seem more
worried that, facing its closest election
in more than a decade, this island
known for its peaceful beaches may be
heading for a period of tumult.
There is a serious concern about
what happens if they lose, says Rajith
Tennakoon, head of the Campaign for
Free and Fair Elections, a monitoring
body. Weve already had a number of
violent incidents. We are going to have
to be careful.

Pariss leftwing mayor has thrown down

the gauntlet to motorists, promising to
restrict cars in the historic centre and
ban diesel-run vehicles throughout the
city by 2020.
In an interview yesterday, Anne
Hidalgo said that she would limit the use
of cars in the capitals four central
arrondissements to create a large semipedestrian zone.
Apart from bikes, buses and taxis,
the only vehicles allowed will be residents cars, delivery vehicles and emergency vehicles in the four districts, she
told the Journal du Dimanche.
Ms Hidalgo said the measure would
be phased in on weekends and later
extended to weekdays though there is
as yet no fixed date.
The plans are the most aggressive
move yet by Pariss government to
declare war on rising levels of pollution
in the city of light. In March, authorities
were caught out as pollution reached
levels twice those considered safe.
The city responded by restricting the
circulation of vehicles and making the
Metro free of charge. But Ms Hidalgo
said she wanted to go further: I want
diesel cars out of Paris by 2020.

Ms Hidalgo, who was born in Spain

and in March became Pariss first
woman mayor, also said she intended to
limit vehicles on roads such as the perennially congested Champs-Elyses and
the Rue de Rivoli, which runs by the
Louvre museum and the Tuileries.
One possibility was to restrict these
routes to clean vehicles such as electric-powered cars.
Ms Hidalgo campaigned this year on a
pledge to pedestrianise the Avenue
Foch, turning one end into a park and
the other end, close to the Arc de Triomphe, into a promenade.
The plan has gone down badly with
the avenues billionaire residents
many from Russia and the Gulf states.
Paris introduced its Autolib electric
car-sharing service at the end of 2011 in
an effort to reduce the number of private cars and address pollution.
Ms Hidalgo also announced a 100m
programme to encourage the use of
bicycles. She said the project would double the number of cycle lanes in the city
by 2020.
In January, Ms Hidalgo 8.5bn of
spending, 1.5bn of which will go to
public transport and another 1bn on
transforming Paris into a wireless,
smart city.

Detention

US transfers six Guantnamo Bay prisoners to Uruguay

MEGAN MURPHY WASHINGTON

The US has transferred six detainees

from Guantnamo Bay to Uruguay, the
first prisoners from the facility to be
sent to South America.
The transfers announced early yesterday by the Department of Defense
four Syrian men, one Tunisian and one
Palestinian will leave 136 detainees in
the military complex in Cuba, down
from just under 800 in its early days, as
President Barack Obama edges closer to
his goal of shutting down the facility.
The United States is grateful to the
government of Uruguay for its willingness to support ongoing US efforts to
close the Guantnamo Bay detention
facility, the Pentagon said.
The United States co-ordinated with
the government of Uruguay to ensure
these transfers took place consistent
with appropriate security and humane
treatment measures.
Guantnamo Bay has long been
assailed by human rights groups over
the conditions prisoners are detained in,
following claims of torture and abuse,

and the US policy of holding many of its

inmates for years without charge in a
facility originally constructed only for
short-term detentions.
However, the Obama administration
has struggled to convince other nations
to agree to accept prisoners from the
facility.
Uruguays outgoing leftwing president, Jos Pepe Mujica, had originally
agreed to resettle the six transfers last
March, a decision said at the time to be
based in part on his own personal history. Mr Mujica spent 14 years in jail in
brutal conditions in the 1970s and 1980s
as a leader of the Tupamaros guerrilla
group, including more than a decade in
solitary confinement.
However, the deal stalled ahead of
Uruguays presidential elections in
October and November, with polls
showing that accepting detainees was
not popular among voters.
This weekends transfer involved the
largest single group of prisoners since
2009.
One of the men, Syrian Jihad Diyab, is
a plaintiff in a federal lawsuit challeng-

ing the practice of force-feeding

Guantnamo Bay inmates who have
chosen to go on hunger strike to protest
against their detention.
The five other men are Ahmed Adnan
Ahjam, Ali Hussain Shaabaan, Omar
Mahmoud Faraj, Abdul Bin Mohammed
Abis Ourgy and Mohammed Tahanmatan, according to the Pentagon.

There are still 136 prisoners being

detained in Guantnamo Bay

While this weekends transfer was

delayed by several months, it is an
important milestone for Mr Obamas
renewed efforts to close the facility.
Together with five low-level inmates
who were moved to eastern Europe last
month and two other recent transfers, it
brings the total number of prisoners
transferred since November to 13, after
the process ground almost to a halt for
much of 2014.
We are very grateful to Uruguay for
this important humanitarian action,
said Clifford Sloan, Mr Obamas state
department envoy on Guantnamo,
who negotiated the resettlement deal
last January.
The support we are receiving from
our friends and allies is critical to
achieving our shared goal of closing
Guantnamo.
The Uruguay resettlement announcement comes two weeks after the abrupt
resignation of US defence secretary
Chuck Hagel, amid widespread speculation that his resistance to accelerating
transfers from the facility had exacerbated tensions with the White House.

Monday 8 December 2014

FINANCIAL TIMES

FINANCIAL TIMES

Monday 8 December 2014

INTERNATIONAL
Ideological debate

GDP per capita

Chile business
sees ghost of
Allende in free
market reforms

$ (000)

Chile

Argentina

15

10
Mexico
5
Brazil
0

1990

95

2000

05

10 13

Gini co-efficients*

Government concerned
that rise in prosperity has
brought more inequality
JOHN PAUL RATHBONE SANTIAGO
BENEDICT MANDER BUENOS AIRES

For 30 years Chile has been a laboratory

for free market economics, with privatised pensions and even a school
voucher system designed by Milton
Friedman, the godfather of Chicago
economics, who once described Chiles
success as a miracle.
Yet now Latin Americas most prosperous country may be reversing the
experiment, to the consternation of free
marketeers everywhere. On a recent
visit to Santiago, the capital, Niall Ferguson, the British historian and a darling
of the political right, said Chile used to
be the regions most intelligent country but now may be beginning to exercise its right to be stupid.
Carlos Alberto Montaner, a Hispanic
columnist, wrote a strident comment
last month saying Chiles emphasis on
economic freedom and civil society
used to be a guiding lighthouse . . . To
lose that hurts everyone.
The reason for their concern is the
administration of centre-left president
Michelle Bachelet. Over the past eight
months it has unleashed 70 reforms,
including an $8bn tax increase to fund
an educational reform that seeks to
expunge market incentives from state
schools, and eventually health and pensions too.
The aim is to create the first post
neoliberal welfare state, says Fernando

Atria, co-author of The Other Model and

an intellectual who is close to the government. It is a system that recognises
the problems of the old welfare state,
but also the price that is paid for correcting that with neoliberal solutions,
namely inequality.
As balancing prosperity with inequality has become a concern for the developed world, Chiles latest economic
experiment also remains of global interest, despite the countrys small $350bn
economy and population of only 17m.
The snag is that many fear the antimarket methods promoted by Ms
Bachelet, whose presidency follows that
of billionaire businessman Sebastin
Piera, could break Chiles so-called
model.
This has slashed poverty rates from
60 per cent to 9 per cent, among the lowest in Latin America, but at the cost of
unequal income distribution, among
the regions worst.
I assume Ms Bachelet wants to be a
successful president, but the multitude
of her reforms and their character have
dashed confidence and brought so
much uncertainty that nobody wants to
invest, grumbles Andrs Santa Cruz, a
businessman, who criticises the poor
drafting of the latest tax code, which
increases corporate taxes to 27 per cent
from 20 per cent.
These tax uncertainties alone make
it impossible for companies to calculate
rates of return on new investments, he
adds.
In principle, almost everyone agrees
that investing more in education makes
sense, as it could help build human capital and see Chile advance out of middle

(2011)

0.2

0.4

0.6

Brazil
Chile
Mexico
Argentina
US
Spain
* 0=total income equality
Sources: IMF; UN; OECD

Face-off:
a protester
wearing a mask
of President
Michelle
Bachelet joins
teachers in
Valparaso city
asking for a pay
rise last month
Rodrigo Garrido/Reuters

income status and into the ranks of the

developed world.
However, banning students from
using vouchers to attend for-profit
schools, and prohibiting schools that
receive public subsidies from receiving
top-up payments from parents, also
goes against the market-based system.
That has startled Chiles close-knit and
conservative business class, which fears
the return of statist policies once
endorsed by socialist president Salvador Allende in the 1970s.
You can feel the past lying heavy on
the country, says one foreign investor
with experience of the country. Everywhere, there are ghosts.
Compounding the uncertainty is that
the reform drive coincides with the end
of a commodity boom that has seen the
price of copper, which makes up half of
Chilean exports, shrink 12 per cent this
year. In the third quarter, economic
growth collapsed to 0.8 per cent, from

almost 5 per cent a year ago, while

investment contracted 10 per cent.
Amid the abrupt slowdown, critics
joke that Ms Bachelets unwieldy coalition The New Majority is much
like Christine Lagardes New Mediocre, as the head of the International
Monetary Fund recently described the
world economy. Certainly, business confidence has fallen in the gloomy atmosphere, while Ms Bachelets popularity
has plummeted to 42 per cent from 58
per cent in June.
For many outside observers, though,
the poisonous debate about the end of
Chiles miracle is a storm in a teacup.
Foreign companies continue to plough
money into Chile. This year, Abbott
Laboratories of the US spent $3.4bn
buying local company CFR, while Ita,
Latin Americas biggest bank, diversified outside Brazil with the $2.2bn purchase of Corpbanca. Moreover, education reform is funded by tax increases,

You can
feel the past
lying heavy
on the
country
A foreign
investor

unlike the social policies of regional

spendthrifts such as Argentina or Venezuela. That should ensure macroeconomic stability, in principle. The macroeconomy has also responded to the end
of the commodity cycle. Chile is the
only Latin American country that has
started a sound external balance adjustment, Bank of America Merrill Lynch
wrote in a research note.
Nonetheless, ideological debate rages.
The government has explained itself
very poorly, admits one insider. It
needs to circumscribe very clearly those
areas that will not be market-based. We
are not talking about revolution.
Eugenio Tironi, a leading sociologist,
agrees. He points out it was Mr Pinera
who first broke the taboo of raising
corporate taxes. Checked by her falling
popularity among the middle class, Ms
Bachelets reforms, he says, will emerge
from Congress not the roaring tiger so
many fear, but more like a cat.

Monday 8 December 2014

FINANCIAL TIMES

FINANCIAL TIMES

Monday 8 December 2014

FT BIG READ. 2014 SEASONAL APPEAL

The civil war has created the worlds largest refugee crisis, leaving the International
Rescue Committee and other aid groups trying to help rebuild the lives of those worst affected.
By Erika Solomon

he survived an army siege,

and fled mass executions and
gang rapes in Syria. But it was
only after she reached a safe
haven in neighbouring Lebanon that 13-year-old Fatima tried to
slit her wrists.
It is not an isolated case. After three
years living in refugee tents, depression,
self-harm, suicide attempts and other
mental health problems are on the rise
for Syrian girls. Fatimas name has been
changed for her safety and she could not
meet the Financial Times herself. But
her mother shared their story to show
how even after fleeing Syrias war,
countless girls are still at risk of rape,
domestic abuse and forced marriage.
Eleven million Syrians have been
forced to flee their homes and there is
no sign that Syrias almost four-year
uprising-turned-civil war is going to end
soon. The immediate priorities in a refugee crisis are relatively straightforward:
people need shelter and food. But when
it becomes a long-term crisis growing
at a rate of 5,000 people a day the
effort can be overwhelming.
Fatima and her mother found hope
in a womens support centre run by the
International Rescue Committee, the
humanitarian organisation selected by
the FT for its 2014 seasonal appeal.
Founded by Albert Einstein in 1933 to
rescue German families facing Nazi persecution, the charity now works in more
than 30 countries, from Myanmar to

Refugee girls are in a

prison . . . In the camp,
you hear women crying,
men beating wives half
those wives are under 14
Zimbabwe, providing relief after tsunamis or building long-term health clinics.
In 2014 the IRC provided aid to 14.8m
people, including 4m Syrian refugees.
With aid groups struggling to provide
food, medicine and education, young
women are often overlooked, though
they are among the most at-risk members of the Syrian refugee population.
Refugee girls are in a prison . . . At
night in the camp, you hear women crying, men beating wives. Half of those
wives are under 14, says Fatimas
mother the dark rings under her eyes
a sign of troubled days.
With limited access to education, girls
can lose their future. Parents who once
protected their daughters are often
traumatised themselves and can
become abusive or so impoverished that
they agree to early marriage a practice
aid workers say increases the chance of
a girl being forced into prostitution.
In muddy settlements that house
thousands of refugees, the fear of assault
means that many girls rarely leave the
worn tarpaulin tents that flood during
winter and bake in the summer heat.
The centre encourages us to live,
to find our strengths, says Fatimas
mother, who stays hopeful despite an
ongoing struggle with family abuse. If
it wasnt for this, my daughter might be
gone maybe I would have committed
suicide, too.

IRC on the ground

The IRC has more than 30 womens
centres spread across refugee camps in
northern Syria and neighbouring countries. Womens protection and empowerment is one of dozens of programmes
the charity manages as part of its Syria
response, which deals with a range of
needs from healthcare to job training.
The IRC, which had income of $456m
last year, focuses on emergency and
development work around the world. In
addition to the Syria crisis response that
spans five countries, it has set up clinics
to treat Ebola patients in west Africa and
distributed aid to Iraqis fleeing the
advance of jihadi militants. It also works
in the US to resettle refugees who get a
chance to start a new life.
Finding long-term solutions for refugees is crucial to regional stability. The
camps are fertile recruitment grounds
for radical groups. Mass movements of
people create economic strains that can
spark unrest in the areas they flee to.
But as the worlds largest refugee crisis
deepens, funds are drying up. Last week
the UN announced it was cutting vital
food vouchers to 1.7m Syrian refugees
due to a funding shortfall.
The IRC has also been forced to divert
funds from Syria. To multiply the
impact of reader contributions to this
years appeal, the British government
will double their value by matching
each donation. Those funds will go
directly to the IRCs Syria projects.
The Syrian crisis is the defining
humanitarian catastrophe of this century so far, says David Miliband, the
president and chief executive of the IRC.
The scale of displacement, with half
the countrys 22m population forced

Syrias stolen childhoods

Letter from the editor

youth programmes unintentionally

omit girls; gender mixing is not socially
acceptable after adolescence.

Desperate measures
The humanitarian crisis in and around
Syria, as powerfully described in Erika
Solomons report, has become a
catastrophe of unprecedented
proportions. About half of Syrias
pre-conflict population of 22m people
have fled their homes to escape the
violence, many of them pouring into
neighbouring Lebanon, Jordan and
Turkey, which are struggling to cope
with the inflows.
This year the staff of the Financial
Times have voted to support the
International Rescue Committee, one
of the most active non-governmental
organisations trying to alleviate the
humanitarian crisis in Syria. The IRC
also works on the frontline in many
other countries, giving people the
technical support and financial means
to help rebuild their lives, and is also
playing a vital role in west Africa in
combating the spread of Ebola.
At a time when hostility towards
refugees and migrants is rising in
many parts of the world, the FT is
proud to support the IRCs work, which
is still guided by the humanitarian
spirit of its founder Albert Einstein
and its mission to assist victims of
civil oppression in many lands without
reference to religious or political faith.
Over the next few weeks FT

to flee their homes, is too big for most

people to grasp.
War, disease and environmental disasters have contributed to what is now
the biggest refugee crisis since the second world war. The UN says more than
51m people globally have fled their
homes. Mr Miliband, former UK foreign
secretary, says he wants the IRC to help
change the aid business to better meet
the needs of todays refugees, especially
women.
The IRC has been at the forefront of
experimenting with more effective ways
to provide support, in particular, cash-

Amina, a mother of 11, who fled Syria

correspondents will report on the

range of the IRCs activities across the
Middle East, southeast Asia, Africa and
the US. You can follow all these
reports at www.ft.com/seasonalappeal.
We hope that you will give
generously to this years appeal, as
you have done every year since 2006.
In total we have helped to raise more
than 14m with our charity partners
over that time.
This year the British government is
providing matched funding for the
appeal. Justine Greening, the UK
international development secretary,
says: Many Syrian children have
known nothing but conflict their whole
lives and now face a fourth harsh
winter away from home.
By matching pound for pound all
public donations to the FT Seasonal
Appeal, we will double the difference
IRC can make. That means more
medicine, clean water and access to
education and a clear message to
Syrian children that the world has not
forgotten them.
The IRC has also received generous
donations from American Express,
Novartis, the Asfari Foundation and
the Lundin Foundation.
Lionel Barber

aid projects that give money instead of

basic staples. Proponents say this lets
aid groups help both the displaced and
their hosts: refugees buy their necessities from locals whose economies are
otherwise drained by rapid population
influxes. Psychological counsellors also
attend training courses to support victims of abuse or depression.
Sara Abu Assali, head of the IRCs
womens programmes in Turkey, says
rehabilitation is critical: Think about it
this way: who else will rebuild Syria?
Just reaching camps in Syria can be a
challenge, as roads, checkpoints and
towns constantly swap hands between
different armed groups. Convincing
conservative families, who often forbid
women to leave home, is another hurdle. In spite of that, some 2,000 women
make almost daily visits to the IRCs
eight makeshift womens centres in
northern Syria.
The IRC sends mobile teams to try
to reach more camps but these efforts
are a drop in the ocean. Displaced Syrians scattered along the northern border
have built about 500 different settlements some house tens of thousands
of inhabitants. The IRC says its work is
critical because many camp-based

The IRC womens programmes worked

regularly with at least 32,000 refugee
women this year. But even success stories can be overtaken by fresh abuse.
Fatima was one such case. The scars
down her arms healed as IRC counsellors treated her depression. But shortly
afterwards her father sent her away to
marry a cousin twice her age.
While there are no reliable statistics
on abuse or self-harm, Fatimas mother
says many girls now experiment with
cutting. Other young women went further. One set herself on fire. They buried her outside the camp. Another tried
to kill herself drinking chlorine but they
took her to the hospital and pumped her
stomach, she sighs. I knew another
girl who was only 15 and had already
been married off by her family three
times. She tried to run away.
Stopping all early marriages is impossible. In some rural parts of Syria it was
common. But most Syrians waited until
their daughters finished university.
Now there is no school and as the crisis
drags on, families are tempted by foreign suitors offering dowries for brides.
Heba, a bubbly 26-year-old dressed in
a leather jacket and white headscarf, is
not discouraged. The areas in northern
Syria where she runs IRC womens centres were too dangerous to visit, so she
crossed the border to meet the FT in
Turkey. For her own safety, we have
withheld her full name.
Heba fears the worst for the girls she
could not help. Its hard to know what
happens beyond the rumours that come
back. We rarely ever hear from them
again. Some women, she says, are
unwittingly married to men in Turkey or the Gulf, without realising their
status is not official or legal.
Many are believed to be forced into
prostitution.
Even a girls tent can be unsafe. The
brutality of war affects behaviour, especially among boys who come of age during the conflict. It has got to the point
where you have cases of girls molested
by brothers or uncles, says Heba. Navigating these environments is complicated. Many women feel too ashamed to
admit they have been abused.
In Lebanon, female refugees can
perhaps seek out secret shelters. But in
lawless northern Syria there are no safe
houses, no legal recourse. Instead, Heba
and her peers teach coping strategies.
At a refugee youth centre in Turkey, a
counsellor called Manal sits with a
group of giggling girls who shout suggestions as she writes on a board, Ways to
say no, at a friends request.
The girls practise sentences together

Girls talk: teenagers attend a session

on the effects of child marriage in a
tent camp in Lebanon. Below, they
express their unity during the class
Sara Hylton

Seasonal Appeal online

See a video interview with David
Miliband, a slideshow and more
stories about the IRCs work
ft.com/seasonal-appeal

Giving to the IRC

to see what works best. Later, Manal

suggests adapting the idea for parents
who do not want to let them leave the
house or go to school.
We start with little things, says
Heba. If she cant do that, how can she
argue about bigger issue like marriage?
Once the girls and women start talking,
confidence grows quickly, she says.
Sometimes we dont have to say
much ourselves, we just create an
opportunity . . . they will start trading
advice, she says. Older women who
married early, for example, will tell
younger mothers, I suffered a lot. Try to
do better for your daughter.
With more funding, the IRC hopes
that the womens tents could even offer
a base to help them organise small business ventures to support their families.
Fatimas mother is learning to speak
up too, before her younger daughter
faces the same fate as her sister.
I thought I had no friends, I was
afraid of the world . . . Now Im
responding to my husband. The last
time he tried to beat her, I spoke up.
She smiles and adds, almost in disbelief: He actually listened. I got a result.

Monday 8 December 2014

FINANCIAL TIMES

10

FINANCIAL TIMES

Monday 8 December 2014

Letters
HIVs economic liabilities are still unfolding

MONDAY 8 DECEMBER 2014

Shareholder rights
and responsibilities
Vanguards plan for boards and investors to engage better is welcome
Heading for the exit sends a strong
message that a relationship has gone
wrong. Strong, but not always informative. Having long-term investors work
with board members to resolve problems rather than simply voting with
their feet can be a more productive
approach when things arent working.
It is one reason why greater shareholder engagement with quoted companies has been one of the key themes
in corporate governance to emerge
since the financial crisis. Such ideas
underpin the so-called stewardship
code for institutional investors introduced two years ago in the UK. They
also lie behind the recent upsurge in
activist investing in the US and growing
demands by long-term institutions for
greater input.
According to Hedge Fund Research,
total assets under management held by
activist funds have doubled since 2010.
FactSet Research Systems says in the
past five years activists have launched
campaigns at more than one-fifth of
S&P 500 firms. Now Vanguard, a $3tn
US fund manager, has come up with a
new initiative designed to promote
interchange between shareholders and
the companies in which they invest.
Rather than waiting for problems to
emerge and then battering down the
doors at governance recalcitrants, the
default setting of many activist investors, Vanguard is advocating a more
consistent and low key approach. It
would like to see boards setting up
shareholder liaison committees
alongside the more conventional ones
they have, to deal with the audit or
remuneration.
Vanguards basic insight is that positive engagement is more likely to result
if directors and investors know and
understand one another better. Directors are standing in on behalf of owners
it is an important concept and
there are many independent directors

who have never met an investor, said

Bill McNabb, its chief executive.
Vanguard sees such committees acting not just as a mechanism to allow
shareholders to anticipate problems
and hopefully nip them in the bud.
They would also allow boards to pick
up ideas about best practice in similar
companies elsewhere.
The fund manager may have its own
reasons for pushing them. It runs some
of the largest tracker funds in the US,
managing roughly 5 per cent of every
publicly traded company in the country. Forced to own a large companys
stock through good times and bad,
trackers do not have the luxury of selling when underperformance strikes.
But its ideas make sense for all forms
of long-term investment. It can only be
good that shareholders take an active
interest in the businesses in which they
invest. Managers are likely to act more
responsibly if they think someone is
looking over their shoulder. Properly
motivated, engaged shareholders can
assist companies to achieve long-term
growth rather than chasing immediate
and volatile gain.
Engagement may be on the rise since
the crisis but too many investors are
still shy of putting in the legwork. One
excuse is it is hard for shareholders to
apply pressure. Many do not want to
devote time and money to corporate
relations if other, larger competitors
are doing so already. Companies should
do more to encourage investors to take
a more enlightened view. Boards may
fret about opening the door to combustible activists. But directors should be
happy to explain long-term ambitions
to committed long-term holders so
built-up trust can see them through
tenser times. The answer for both sides
is not to shy away from engagement
but have more of it and of a higher
quality. It is a lesson companies and
investors would do well to embrace.

Rightwing populists in
Europe make mischief
Swedens Social Democrats are gambling on a snap election in 2015
As a result of the disruptive parliamentary tactics of an anti-immigrant, rightwing populist party, Sweden will go to
the polls in March for its first snap general election since 1958. This should be
a wake-up call for Europe. Slick and
strident anti-establishment parties are
no longer mere protest movements but
are generating instability even in countries with a solid record of prosperity
and corruption-free politics.
True, the collapse of the two-monthold, Social Democrat-led government
of Stefan Lfven, prime minister, gives
no grounds for fearing that the economy, public finances or successful
Swedish model of welfare state capitalism are in crisis. The real problem is
that the election may fail to produce a
clear-cut result and permit the return
of stable government.
Mr Lfven called the election after
the populist Sweden Democrats party,
breaking with parliamentary tradition,
voted with the centre-right opposition
to reject the governments 2015 budget.
The tumult recalls events in the Netherlands in 2012, when the anti-Islamic
Freedom Party of Geert Wilders, which
had provided parliamentary support
for a minority government, triggered a
snap election by refusing to back the
ruling coalitions budget.
For conventional parties that face
rightwing populist challenges in
France, the UK and elsewhere, the
lesson should be clear. The populists
are so focused on their pet grievances
hostility to immigrants, the euro, globalisation that they will take every
opportunity to discredit opponents
they despise. They are unreliable partners because their outsider status is a
core element of their appeal.
Voters will not necessarily reward
them for bringing down a government.
In the 2012 Dutch election, Mr
Wilderss mischievous tactics backfired. The Freedom Party lost 5 per-

centage points of support and dropped

to 15 from 24 seats in parliament.
Unfortunately, it is by no means clear
that the Sweden Democrats will suffer
the same fate in March. According to
opinion polls published after the governments fall, support for the Sweden
Democrats has edged up to 13.5 per
cent from 12.9 per cent in the September general election. Mr Lfvens Social
Democrats and their allies are running
neck and neck with the centre-right
opposition, an indication that the rightwing populists may hold the balance of
power in the next parliament just as
they do in the outgoing legislature.
Were this to happen, the Social Democrats should consider uniting in a
grand coalition, similar to that which
rules Germany, with the centre-right
Moderate party, which held power for
eight consecutive years after 2006.
Failing that, the two big parties should
find ways to co-operate in parliament,
such that one or the other can form a
government with its smaller allies.
However, the priority now must be
to expose the Sweden Democrats as a
party with a reckless approach and an
array of intolerant, socially divisive
policies wholly out of keeping with
Swedish political culture. The main
parties need not be scared by the Sweden Democrats threat to make the
election campaign a referendum for
or against increased immigration.
The Sweden Democrats abandoned
their neo-Nazi doctrines more than
10 years ago, making it inaccurate to
label them a far-right party, but most
Swedes correctly regard the partys
aggressive line on immigration as
unpalatable. The more intensely the
party dwells on immigration, the more
remote its chances of making an electoral breakthrough. Come March,
Swedish voters can show the world that
the tide of rightwing European populism is anything but unstoppable.

Sir, As the world marks World Aids Day

in 2014, achievements so far should not
cause complacency that HIV/Aids has
been beaten. Clive Cookson (FT.com,
December 2) rightly highlights recent
research on HIV becoming weaker.
However, HIV is still one of the biggest
killers in Africa, causing 1.1m deaths in
2013, or 3,013 deaths per day. Ebola
deaths, so far, are still far lower than
HIV-related deaths.
What also needs to be better
appreciated is the economics of HIV in
terms of the size of the future life cycle
financial liability for affected countries
and donor community. Such financial
commitments need moral fortification
from a duty of rescue principle from

policy makers and donors. The future

liability of HIV treatment and
prevention is easily three times higher
than what is currently being spent.
Looking at Africa, the liability over the
next 35 years is closer to $800bn, on
the back of universal coverage and
duty of rescue. This is a quasi-national
debt for the affected countries which
has not yet been acknowledged and
factored in, and has implications for
fiscal sustainability.
There is an imperative to think of
strategies for innovative finance, such
as social impact bonds and tax on
mobile phone usage. Equally, new fiscal
space should be sought, especially from
revenues from natural resource

discoveries in Africa and efficiency

gains from the health sector at large.
HIV intervention platforms should also
be used as an opportunity for
strengthening the entire healthcare
delivery system on comorbidities such
as cardiovascular diseases, TB and
hypertension.
While medically HIV may seem to
have been tamed, its economic
liabilities over the next 35 years are
enormous and still unfolding. It is a
ticking financial time bomb!
Mthuli Ncube
Professor, Blavatnik School of
Government,
University of Oxford, UK
Project Leader, RethinkHIV

Model law is the key to

protecting unprotected
government debt
Sir, There is a relatively easy way in
which unprotected government debt
could in fact be protected and that
would be by way of a short law enacted
in each of the handful of countries
through which pass the vast majority of
financial flows (Vulture hedge funds
switch focus to target unprotected
government debt, November 27).
This law would follow the successful
precedent of the UNCITRAL model law
on cross border insolvency. That model
law has been adopted in both the UK
and in the US and basically provides
that a restructuring of an insolvent
entity which meets certain tests will be
recognised and given effect to by the
courts of a country which has adopted
the model law. Thus, in my own
practice, we have had foreign
restructurings recognised in both the
UK and the US and obtained
permanent injunction from the courts
in both places prohibiting holders of
the restructured debt from suing on
their old claims. This has the practical
effect of cancelling out those claims.
Although the UNCITRAL model law
has only been adopted in a handful of
countries, being able to use it in the UK
and the US has to date proved in fact to
be sufficient to deter any creditors
claims. A similar law in the sovereign
context would address many of the
problems noted in the article, so long
as the debt held by the vulture funds
was included in a recognised
restructuring.
It would only require a handful of
countries (and were really only talking
about the UK, the US, Japan and one of
the eurozone nations) to adopt a law
which provided that a sovereign
restructuring in accordance with an
agreed procedure would be recognised
by that countrys courts, then you have
a regime which will allow a sovereign to
restructure and obtain the protection
of key payment countries for its most
vulnerable (ie financial) foreign assets.
You only need the handful of
countries I mentioned because most of
a sovereigns non-domestic assets have
immunity and the assets which are
most likely to be attacked are its
financial assets. Therefore if you can
obtain protection for the sovereign in
the principal financial centres, that is
a de facto recognition of the
restructuring universally.
Francis Fitzherbert-Brockholes
Partner, White & Case,
London EC2, UK

Beware the
paternalist in
libertarian garb
Book review
Mark
Vandevelde

Valuing Life:
Humanizing the
Regulatory State
by Cass Sunstein
University of Chicago Press
(17.50/$25)

Temerity: loafers as office wear Getty Images

Youre hired but dont

come to work in slippers
Sir, The letters with regard to the
unkempt dress of Lucy Kellaway and
Tyler Brl (December 4) reminded
me of a story once told to me by a
former colleague.
Upon leaving the army, he went for
his first interview to enter the world of
stockbroking at Cazenove, as former
army officers did in those days (this
was the mid-1980s). The partner sat
him down, read his rsum and said:
Right. Sandhurst, Grendadier Guards.
Just what were looking for. But youll
have to leave the bedroom slippers at
home.
He had had the temerity to show up
for his interview in loafers rather than
lace-ups!
Chuck Mentcher
Tucson, AZ, US
Sir, Rudy D Blake and Adrian Danson
(Letters, December 4) are critical of
the clothes that Tyler Brl is wearing
in the photograph accompanying Lucy
Kellaways article (December 2).
As Mr Brl is a successful
international style guru and
tastemaker, I can only assume that his
rumpled appearance is quite deliberate
and that he pays someone to create
that look for him.
John OByrne
Harolds Cross, Dublin 6, Ireland

suited to those who spend their days

filling in spreadsheets.
Please note that I have written this
letter while on a delayed train.
Alan Bullion
Tunbridge Wells, Kent, UK

Sentinel has serious plans

for asteroid detection
Sir, Your report Scientists warn of
asteroid threat to humanitys future
(December 4) points to a hazard
humanity can do something about.
Your excellent article speaks of the
need for a telescope in orbit between
Earth and Venus to aid in detecting
asteroids that present a threat to Earth
(its position would pick up much more
reflected sunlight from asteroids,
greatly aiding detection).
Interested FT readers may want to
know that there is an organisation, the
B612 Foundation, whose project,
Sentinel Mission, seriously plans to
launch just such a telescope. Interested
readers, probably being smarter than
the dinosaurs that were rendered
extinct by an asteroid collision, might
possibly consider supporting it.
Harold Seneker
Fair Lawn, NJ, US

Sir, The treatment of interns by Tyler

Brl at Monocle (December 2) speaks
volumes: all scrunched up into tiny
spaces, while he enjoys two vast rooms,
with flowing champagne and an
oversized desk covered with paper,
naturally.
I also concur with Starr Wood
(Letters, December 4) that although
writers can compose copy almost
anywhere, well-ordered offices with
white walls and clean desk policies
are not conducive to inspired and
lively stories, being much more

Sir, I note with some concern that

scientists, including rock band Queens
guitarist Brian May PhD, are concerned
that we risk annihilation by a
bohemian asteroid (Scientists warn of
asteroid threat to humanitys future,
December 4). One may well ask:
Is this the real thing, or just a fantasy
Hit by an asteroid the end of humanity?
The evidence is apparently there for
all to see:
Open your eyes, look up to the skies and
see . . .
Another rock band from a distant
timezone, REM, had a more
philosophical approach:
Its the end of the world as we know
it . . . And I feel fine.
Dr May might like to consider this
alternative view.
Malcolm Harker
Seattle, WA, US

Cass Sunstein has spent much of his

career figuring out how to make the
land of the free a safer place for the
foolish and shortsighted.
A friend of Barack Obama from the
t
days when both were law professors in
Chicago, he rose to prominence as coauthor of Nudge (2008), a bestseller
that advocated a sort of ju-jitsu
paternalism. Stop people from making
bad decisions, it urged, but do not
bludgeon them with rules.
Allow workers to opt out of saving
for old age, for instance, but divert
part of their salary to a retirement
account unless they tell you to stop. At
the canteen, let them take outsize
portions but take away the trays and
make it hard to carry overfilled plates.
The idea is to throw people off balance
at the moment of decision so their
inertial weight falls naturally on the
wisest choice.
Valuing Life draws on Sunsteins
career as a public servant, which
began when Mr Obama moved into
the White House and gave his former
colleague his pick of several top
Washington jobs. For the next three
years Sunstein presided over an office
where federal regulations are vetted.
With his staff of 45, he scrutinised
hundreds of proposed rules to figure
out how much they would cost
whoever would have to comply with
them and what benefits could be
expected in return. It sounds like a
bureaucratic backwater but to hear
Sunstein tell it, this was an energising
intellectual challenge.
The state, he says, must repeatedly

ask: What would be the effects of

acting or of not acting? Federal
agencies usually answer by putting a
dollar figure on the benefits expected
from a contemplated rule. That is easy
if you are considering an energy
efficiency standard for lightbulbs a
good idea if electricity bills stand to go
down by more than manufacturing
costs go up. It is not so easy if your
proposed rule aims to prevent misery
or save lives. Then you must put a
number on something priceless.
In such cases the government
considers what in a hypothetical
market consumers would be willing
to pay for the promised benefits. How
much they would give, say, to
eliminate a small chance of death? You
might reach a vague estimate by
comparing ticket prices on a crashprone airline and a safer one, or you
might just walk the streets and ask.
Using such evidence, you can
apparently work out that saving a life
is worth about $7m.
Sunstein has quibbles with this way
of proceeding but on the whole he
endorses it. He calculates that the
rules introduced on his watch left the
US $91bn better off. (That is about
$10bn more than the profits earned in
the same period by Apple, the worlds
most valuable public company.)
The regulatory calculus that
undergirds this boast is, Sunstein says,
a method rooted in exceedingly
appealing ideas about welfare and
autonomy ideas that deserve a
prominent place in a free society. If
you are willing to pay for the benefits

Clean white spaces are for

the spreadsheet-fillers

Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com

Taking an enlightened
approach to psychedelic
drugs as treatments
Sir, It was a great pleasure to see
Andrew Jack covering such an
important field of research in his
article When drugs do work (FT
Magazine, November 29).
The Beckley Foundation has been at
the forefront of this vital field for
nearly two decades, commissioning
key research into the neurological
mechanisms underlying the
therapeutic potential of psychedelic
drugs. Building serious scientific
engagement with this topic has been
an arduous task. Now we are
witnessing this hard work bearing fruit
in ways that would have been
unimaginable a decade ago. There is a
surge of interest in the potential of
these studies and a development in the
understanding that these areas will
provide important answers in brain
research and new avenues of
treatment.
We are currently engaged in the
worlds first brain imaging study with
human participants under the
influence of LSD as part of the
Beckley-Imperial Psychedelic Science
Programme. Through pioneering
research like this we are able to learn
how these substances might be of use
in treating some of our most
intractable diseases such as depression,
addiction and post-traumatic stress
disorder. The Beckley Foundation is
also the co-sponsor of the upcoming
MDMA for PTSD study with veterans,
mentioned in the article. The
implications of these studies are too
important to be held to ransom by
prejudices of the past.
Its now time to start looking more
deeply at these important areas with a
well-reasoned and scientific approach.
Your inspiring article is an important
step in the right direction.
Amanda Feilding
Director,
The Beckley Foundation,
Oxford, UK

Practical rule that

must suffer exceptions
Sir, No need to belong to the radical left
to sympathise with Wolfgang Mnchau
(The radical left is right about
Europes debt, November 24). True,
one cannot ignore the difficulties that
all of the many debt restructuring
possibilities entail. On the other hand,
it is no less true that the mountain of
debt left by the financial crisis and
housing bubbles puts the recovery of
the eurozone at risk, especially under
the current policy mix. After all, that
debts should be paid is a sound
practical rule which must suffer
exceptions under extraordinary
circumstances; this is why one searches
in vain for historical precedents for the
full repayment of debts resulting from
a serious financial crisis.
Alfredo Pastor
IESE Business School,
Barcelona, Spain
BLOGS ON FT.COM
Nick Butler
A passage to India: Vladimir Putin goes
to New Delhi
www.ft.com/nick butler
Gavyn Davies
The Federal Reserve plans to normalise
US interest rates
www.ft.com/gavyndavies

that some piece of regulation will

bring you, you must think they are
worth having. Officials should respect
your judgment.
Well, people say all sorts about what
they would pay for this or that.
Awkwardly for Sunstein, however,
there is no clear sign of this willingness
in anything they do with their wallets.
Citizens of an untrusting disposition
will prick up their ears when officials
propose to coerce them in the name of
respecting their autonomy.
Their suspicions will intensify when
Sunstein describes the blunders we
make when left to decide for
ourselves. Fixating on the horrors of a
catastrophic event a terrorist attack,
for example we forget that it is
vanishingly unlikely and spend too
much on trying to prevent it, even as
we incur much greater risks on poorly
maintained roads. This is a good
reason for involving technocrats, as
well as politicians, in government
decisions. But it is at odds with
Sunsteins claim to be respecting the
judgments of the people.
Freedom to make mistakes can be a
dangerous thing. But Americans are
deeply attached to it and it may be
politically astute for a paternalist to
claim the mantle of a libertarian. To
my mind, though, it is a Jesuitical
evasion. Better to acknowledge out
loud that, on lifes dark prairie, the
torch of freedom is sometimes less
useful than a guiding hand.
The writer is the FTs executive comment
editor

Monday 8 December 2014

11

FINANCIAL TIMES

Comment
Crumbling infrastructure signals a loss of collective faith
ECONOMICS

Lawrence
Summers

ake a walk from the US Air

Shuttle in New Yorks
LaGuardia airport to
ground transportation. For
months you will have
encountered a sign saying New escalator coming in Spring 2015. Or take the
Charles River at a key point separating
Boston and Cambridge which is little
more than 100 yards wide. Traffic has
been diverted to support the repair of a
major bridge crossing the river for more
than two years, and yet work is expected
to continue into 2016!
The world is said to progress but
things that would once have seemed
easy now seem hard. The Rhine river is
much wider than the Charles yet General George Patton needed just a day to
build bridges that permitted squadrons
of tanks to get across it. It will take

almost half as long to fix the escalator in

LaGuardia as it took to build the Empire
State building 85 years ago.
Is it any wonder that the American
people have lost faith in the future and
in institutions of all kinds? If rudimentary tasks such as keeping escalators
going and bridges repaired are too much
to handle, it is little surprise that disillusionment and cynicism flourish.
Political debates are often framed in
terms of the respective roles of the public and private sector with progressives
stressing the importance of private market failure and conservatives stressing
the dysfunctionality of the public sector.
The sad truth is that there is merit in
both arguments.
The escalator that will take five
months to repair is privately owned.
Although it is in an airport, failure cannot be blamed on public authorities.
Necessary maintenance had been
delayed for years with the escalator
in question even being stripped for
spare parts to support other escalators.
Now the new owner has many priorities;
the replacement of the escalator system
is only one.
On the other hand, repair of the

bridge across the Charles River is the

responsibility of local governments.
A combination of budgetary short sightedness, excessively rigid labour practices, and a failure to take account of the
costs of traffic delays appears to account
for the projects remarkably long gestation period.
While much of the political debate
takes place on a macro level, focusing on
large scale changes in spending, tax or
regulatory policies, I suspect that much

It will take almost half as

long to fix La Guardias
escalator as it took to build
the Empire State building
of what frustrates the public happens on
a more micro scale.
A government that has to install
safety nets under bridges to catch failing
debris will not inspire when it aspires to
rebuild other nations.
When big companies are cannibalising their machinery for spare parts, it is
hardly surprising that they are not

trusted to embark on voluntary long

run programmes to control greenhouse
gases, promote diversity or develop new
technologies.
What is to be done? First, the focus of
infrastructure discussions in both the
public and the private sector needs to
shift from major new projects whose
initiation and completion can be the
occasion for grand celebration to more
prosaic issues of upkeep, maintenance,
and project implementation.
For example, before anyone contemplates spiffy new high-speed railway
systems, careful consideration should
be given to repairing existing rail lines
and stations.
Second, accountants in the public and
private sector need to develop methodologies for capturing deferred maintenance and showing this in the financial
accounts for what it is borrowing from
the future. What is counted counts and
so if maintenance deferrals were made
transparent they would become much
more expensive for decision makers.
Third, the public and the media on
their behalf need to be much less
accepting of institutional failure. It has
been said that we do not want to know

all to which we can become accustomed.

A vicious cycle in which governments
perform poorly and so are starved of
resources and so perform worse is serious threat to healthy democracy.
Something similar can happen to
business. If owners distrust management they will insist on taking cash out
rather than permitting its use for long
term investment. The only answer is
prompt and aggressive responses to failure that ensure that it is shortlived.
More important than any specific
remedy, there is a reason beyond the
media and the publics own economic
problems why there is so much disillusionment with so many institutions.
They do not seem to perform as well as
they once did. We see it every day.
Fixing escalators and building bridges
may seem like small stuff at a time of
economic crisis and geopolitical instability. But it is time we recognise the
importance of what may seem small to
what is ultimately important the faith
of citizens in their collective future.
The writer is Charles W Eliot university
professor at Harvard and a former US
Treasury secretary

Bold and sold: Obama spoils diplomacy

AMERICA

Edward
Luce

ince the days of Andrew Jackson, US presidents have

merrily auctioned diplomatic
postings to rich friends.
Barack Obama is no exception. As the man in Casablanca said,
people are shocked, shocked by Mr
Obamas ambassadorial selections. Yet
there is an element to the recent outrage
that goes beyond the usual hypocrisy.
If one thing captured moneys growing
hold over US public life and the White
Houses apparent carelessness with
Americas reputation this would be it.
At a time when Vladimir Putins autocratic style is winning admirers in parts
of central Europe, Mr Obama nominated Colleen Bell, the producer of The
Bold and the Beautiful, as his next ambassador to Hungary. Ms Bell made it clear
in her Senate hearing that she knew
next to nothing about Hungary a
country run by Viktor Orban, a strongman with Putinesque tendencies. Ms
Bell is no authority on the tenuousness
of democracy in parts of the former
Soviet world. Nor, presumably, is she
steeped in Washingtons interest in
shoring it up. But she knows a thing or
two about fundraising, having netted
$2.1m for Mr Obamas 2012 presidential
campaign.
Then there is Noah Mamet, a public
relations consultant, who raised $1.4m
for Mr Obama. Mr Mamet is the next US
ambassador to Argentina, a country he
admitted he had never visited. As the
second-largest economy in South America, and a place flirting with overt
anti-Americanism, Argentina is hardly
the Solomon Islands. Its stance matters.
So too does that of Norway, a US ally
in Russias neighbourhood that is feeling
insecure about its future. Mr Obama
nominated George Tsunis, a wealthy

hotelier, and a big election donor. His

confirmation was held up after he too
disclosed he had never visited Norway,
and believed its system was presidential
(it is a kingdom). Mr Tsunis also
described one of Norways coalition parties as a fringe element that spewed
hatred. He had mistaken it for a one
that is not in government. And so on.
Big deal, say Mr Obamas defenders. It
has always been this way. They have a
point. Think about George W Bushs
envoys to London. First he sent a horse
breeder pal who made his wealth at the
Kentucky Derby. Then he sent a car
dealer. Both were election donors.
US-UK relations survived. Moreover,
Lou Susman, Mr Obamas first ambassador to London, was a success, in spite of
having also been an election donor with
no government experience. Not all
political appointees are greeted as an
insult by their host country. When

any moral failing on Mr Obamas part.

But some of the damage is self-inflicted.
When Mr Obama campaigned for office,
he vowed to change the way Washington does business. Arguably he has
kept that promise, but not in the way
voters interpreted it.
The trend also undercuts another of
Mr Obamas pledges: to take diplomacy
much more seriously than Mr Bush,
whom he rightly criticised for relying
too heavily on military means of engaging the world. Choosing people such as
Ms Bell, who is doubtless impressive in
her field, negates that pledge on two
counts. First, it further demoralises the
US diplomatic corps. The state department finds it increasingly difficult to
attract high-flying graduates, since they
know there will be a glass ceiling blocking their career paths. Imagine how
harder it would be for West Point to
recruit talented military officers if plum
generalships were handed out to amateurs who had never worn a uniform.
Second, picking unqualified nominees send a demeaning message to the
recipient country. Like Ms Bell, I have
never visited Hungary. But I gather its
public mood is increasingly anti-American. Stereotypes abound of a superpower that is ignorant about the world
beyond its shores and that thinks the
past is past. Having lived in Washington
for some time, I know the reality is far
different. Americas capital is teeming
with more experts on more parts of the
world than any other city on the planet.
Many of them serve out mid-level sinecures in the state department or in think
tanks. It would be nice were more to be
posted to the front lines. Some of them
even speak the local language.
Ultimately, economic strength determines a nations power. But at a time
when US hegemony is under challenge,
Washington should keep its friendships
in good repair. On that count, Mr
Obamas record leaves a lot to be
desired. To the victor go the spoils, they
say even in the worlds oldest democracy. But not to this degree, surely?

The state department finds

it hard to attract graduates,
since there is a glass ceiling
blocking their career paths
they have a close relationship with the
president as was true for Mr Susman
they can sometimes be more effective
than the professionals. In others, such as
Caroline Kennedys Tokyo appointment, their celebrity can prove helpful.
Ms Kennedy was rewarded for having
given Mr Obamas campaign the magical
family endorsement.
Yet Mr Obamas apologists protest too
much. Until recently, ambassadorial
postings split roughly seven to 10 in
favour of career diplomats with presidential donors taking about 30 per cent.
In Mr Obamas second term, the share of
political names has risen to 41 per cent,
according to the Foreign Service Association, which represents Americas
increasingly alienated career diplomats.
In other words, things have deteriorated
since 2008. This chiefly reflects the galloping costs of US elections, rather than

edward.luce@ft.com
Matt Kenyon

The ECB, demigods and eurozone quantitative easing

EUROPE

Wolfgang
Mnchau

he European debate about

quantitative easing has
reminded me of Zenos paradox of motion: Achilles
could never catch up with a
tortoise because whenever he had
bridged the distance between them, the
tortoise advanced. Same here: whenever the conditions seemed to be in
place for QE, new ones popped up.
All that changed on Thursday. The
European Central Bank voted to elevate
the 1tn increase in the size of its balance sheet from something it expected
to happen to something it intends
to accomplish. This is more than a rhetorical change. Without QE the target

cannot be reached. By committing

to this number, the ECB in effect agreed
to QE.
Those who have opposed the programme know that once the ECB has a
balance sheet target, QE will follow by
default. The ECBs existing programmes
are not big enough to reach that goal.
In light of this new situation, the question is no longer whether QE will
happen but how it will work. I would
expect the size of any programme to be
about 500bn. With that, the balance
sheet target could be in reach. So what
would 500bn buy?
The total amount of the eurozones
government debt is about 9tn, so such
a programme would just be 5.5 per cent
of the total. Compare this to the UK,
where the Bank of Englands stock of
government debt was about 25 per cent
of the total issued as of 2013.
If the ECB wanted to do as much as the
BoE did from 2009 onwards, in relative
terms, it would have to commit to asset
purchases of more than 2tn. In fact, it

has to do quite a bit more because it has

started much later, and because the situation in the eurozone is more serious.
Those on the ECBs governing council
who oppose QE fear that it would trigger
a larger programme later on. This is why
I expect Berlin to mount a legal challenge in the European Court of Justice.
A 2tn programme, or something

By committing to a 1tn
increase in the size of its
balance sheet the bank has
in effect agreed to QE
approaching that, would have a similar
economic effect to a eurozone bond
that is, a jointly issued debt security
which is something Germany has been
resisting. In that scenario the ECB would
absorb a big chunk of the outstanding
debt of highly indebted eurozone countries, and keep it on its books forever.

The alternative to a large programme

is an inadequate one for example, one
that stops at 500bn. It would meet less
opposition in Berlin. Unfortunately, it
would also be economically irrelevant.
To see this, one should consider the
channels through which QE works. The
most direct impact would be on the
interest rates of the securities purchased. If the central bank buys fiveyear government bonds, the price of
those bonds will rise and the yield will
fall. Since those bonds serve as a benchmark for bank loans, the interest rates
on banknotes may fall as well, in theory,
though probably not in the eurozone.
Then there is the portfolio rebalancing channel: when banks sell bonds to
the ECB, they will need to buy something else instead. They might lend
it out. They might buy other risky
securities. This may well be the most
important effect but it will probably not
be as effective as it was in the US and the
UK, when asset prices were lower.
What about the exchange rate? This is

the most overrated channel. The euros

trade-weighted exchange rate has fallen
by only 4 per cent in the past year. It
could come down a little further, but
this is not going to do the heavy lifting.
The eurozone is simply too big for that.
The only truly significant conduit of a
QE programme would be a debt relief
channel. If the ECB were to buy, and
retire, a quarter of Italian debt, life in
Italy would become a lot easier. That,
however, is not going to happen either
because the programme is too small or,
if not, Berlin would challenge it legally.
If you want to push the money
through these channels into the economy, you will need a lot of money and a
lot of pushing. Ideally, you would not
start from here but from where the US
Federal Reserve or the Bank of England
started in 2008 and 2009 respectively.
My fear is that a European QE programme will happen but still stay
trapped in Zenos paradox.
munchau@eurointelligence.com

The march of
artificial
intelligence is
a long way off
OPINION

Andrew
McAfee

hen hugely intelligent

and accomplished people start worrying a lot
about artificial intelligence, should we join
them? The physicist Stephen Hawking
recently told the BBC that the development of full artificial intelligence could
spell the end of the human race. Earlier
this autumn the entrepreneur Elon
Musk called AI our biggest existential
threat and compared the research
under way to summoning the demon.
Why is this? Prof Hawking gives a concise summary of the big fear: that once
there is true artificial intelligence a
full digital version of the human mind
it would take off on its own, and redesign itself at an ever-increasing
rate . . . Humans, who are limited by
slow biological evolution, couldnt compete, and would be superseded.
AI does appear to be taking off: after
decades of achingly slow progress, computers have in the past few years demonstrated superhuman ability, from
recognising street signs in pictures and
diagnosing cancer to discerning human
emotions and playing video games. So
how far off is the demon?
In all probability, a long, long way
away; so long, in fact, that the current
alarmism is at best needless and at
worst counterproductive. To see why
this is, an analogy to biology is helpful.
It was clear for a long time that important characteristics of living things (everything from the colour of pea plant
flowers to the speed of racehorses) was
passed down from parents to their offspring, and that selective breeding
could shape these characteristics. Biologists hypothesised that units labelled
genes were the agents of this inheritance, but no one knew what genes
looked like or how they operated. This
mystery was solved in 1953 when James
Watson and Francis Crick published
their paper describing the double helix
structure of the DNA molecule. This dis-

We are still many Watson

and Crick moments
away from anything
to worry about
covery shifted biology, giving scientists
almost infinitely greater clarity about
which questions to ask and which lines
of inquiry to pursue.
The field of AI is at least one Watson
and Crick moment away from being
able to create a full artificial mind (in
other words, an entity that does everything our brain does). As the neuroscientist Gary Marcus explains: We know
that there must be some lawful relation
between assemblies of neurons and the
elements of thought, but we are currently at a loss to describe those laws.
We also do not have any clear idea how a
human child is able to know so much
about the world that is a cat, that is a
chair after being exposed to so few
examples. We do not know exactly what
common sense is, and it is fiendishly
hard to reduce to a set of rules or logical
statements. The list goes on and on, to
the point that it feels like we are many
Watson and Crick moments away from
anything we need to worry about.
But what about the superhuman technologies listed above? Are they not significant? They are, but not because they
are moving us closer to full AI. They
are examples of what can be accomplished with extraordinary amounts of
computing power, oceans of data and
software that learns from being shown
lots of examples. Systems such as these
will improve our lives and change our
economies, but they are about as likely
to rise up against us as forklifts are.
One thing I have learnt from technological progress is never say never, so I
will not dismiss the possibility of
unlocking the mysteries of intelligence.
But we are not close to doing so yet. At
least some of the AI alarmists acknowledge this fact, but then state that grave
threats to humanity must be taken seriously, even if they are highly unlikely.
We have more than enough real nearterm challenges to deal with: unemployment and other economic woes, terrorism, terrifying diseases, global warming
the list is depressingly easy to generate. Why add to it by maintaining that
the phantoms of the far future are
demons coming for us soon?
The writer is co-author of The Second
Machine Age and a blogger for FT.com

12

FINANCIAL TIMES

Monday 8 December 2014

BUSINESS EDUCATION

Lighting up Chinas start-up spirit

The countrys business
schools see more interest
from students wanting
to launch companies,
writes Della Bradshaw

n the cold basement of an office

block in northwest Beijing, a group
of would-be entrepreneurs huddle
around a computer screen, poring
over their latest prototype. A few
miles away, in a well-heated and distinctly more luxurious underground
lecture room, a group of 30 managers
and entrepreneurs also debate ideas for
new products and ventures.
Both groups are testament to the
growing appetite for start-ups in China.
Just as business schools in the US and
Europe have reported a surge in student
interest in running their own companies, business schools operating in
China are also reporting a thirst for all
things entrepreneurial.
Start-ups are the new sexy thing,
says Yi Wang, co-founder and chief
executive of Liu Li Shuo, which developed an English language app for Chinese smartphone users, the only education app selected by Apple in the 2013
App of the year award in China.
Definitely youre seeing an increasing trend in entrepreneurship in China.
Top-tier venture capital firms are looking for young entrepreneurs theres a
whole ecosystem coming up, Mr Wang
enthuses. In recent years companies
that have been making the biggest
impact on peoples lives have been internet companies and behind them
encouraging stories about ordinary people making it big.
Mr Wang is one of the participants on
the 10-week Stanford Ignite programme, which the Silicon Valley business school ran in Beijing for the first
time in October and November. There,
in the Stanford building in the heart of
the Peking University campus, a select
group of 30 entrepreneurs and intrapreneurs devise business plans that may
one day prove to be highly successful
companies.
Mr Wangs own history is typical of
many of Chinas new breed of entrepre-

neurs, he says. He went to the US to

study for his PhD, worked for Google for
two years and then returned to Shanghai to work for an internet marketing
company. His two co-founders report a
similar history. As more and more Chinese students study overseas, behaviour
at home is changing rapidly, with young
people eschewing the traditional large
corporation he says.
The sentiment is echoed in the spartan basement that is Tsinghua Universitys x-lab, where angel investors rub
shoulders with students and alumni
from across the university, arguably
Chinas most prestigious. Between them
they are developing everything from the
latest electrically powered scooter to
moderately priced 3D printers and
wearable health monitors.
Since the x-lab launched 18 months

Mr Ma has ambitions for the Peapad

to be on the market in the first half of
2015, and will offer the Peapad hardware for free, with parents buying software, services and access to the community.
Our ambition is a bit more than language learning, he says. There is no
smart device [like this] in the market
for kids. We believe in the next 10 years
this will be a real trend.
Currently early childhood education
is offline all over China, but we believe
over the next few years it will all go
online. Hardware is a channel and we
are providing the channel.
In developing his product Mr Ma has
taken advantage of other start-up ventures in the x-lab a computer graphics
company helped design the website and
Peapad games and a 3D printing firm
helped develop a scale model. The x-lab
offers legal advice on patents and access
to Tsinghuas industrial design centre as
well as advice from angel investors and
venture capitalists.

Venture capital firms are

looking for entrepreneurs
[in China] theres a whole
ecosystem coming up
ago, some 400 start-ups have used the
facilities, says Pearl Mao, executive
director. Close to 300 of them continue
to flourish and more than 30 of them
already have substantial funding.
What is more, every Thursday the
x-labs team holds project meetings and
each week 10 new ventures pitch to
become part of x-lab. Those that succeed can use the facilities free of charge
Michael Ma, who graduated from
Tsinghua SEM in 2006 with an Executive MBA, fits the bill. He believes there
is much to be done in creating English
language teaching technology. China is
the biggest market for foreign language
learning in the world, he points out.
His company, Beijing Peapad Education and Technology, targets parents of
young children with its small, green,
talking pea character, which is controlled through a parents smartphone and
uses songs and games to teach English.
There was no such product in the
market. We think it is important for Chinese kids to learn English, he says.
Also we believe there is a lot of money
to be made in the industry.

I
Spreading the word
Stanford to take its
expertise overseas
Stanford GSB, the business school at
the heart of Silicon Valley, is taking its
entrepreneurial know-how to two more
of the worlds top cities in 2015
London and New York. Stanford Ignite
has been taught previously in Paris and
Santiago as well as in Beijing and in
Palo Alto, where the programme was
launched in 2006.
Those programmes used outside
California rely on professors visiting
from Stanford combined with lectures
taught using videoconferencing

technology. I think we found a model

for a remote immersive education
experience, says Stanford Ignite
faculty director Yossi Feinberg.
Though professors often teach
remotely, the local experience for
participants is intensive and personal.
You need teams, you need mentoring,
says Prof Feinberg. Part of any
educational experience is that you
create a trusted network.
Once the class is accepted,
participants submit ideas for ventures,
the best of which are worked on by
groups, alongside the lectures. These
ventures form the backbone of the
10-week programme.
Prof Feinberg has high expectations

for participants. I expect everyone to

start their own company or lead
innovation in their [current] company,
he says. Stanford Ignite has a strong
record: more than 100 successful
companies have so far been started by
participants on the programme.
In London, the programme will run in
Canary Wharf and be hosted by Infosys
the IT company already hosts the
programme in Bangalore. Stanford is
accepting up to 50 students for the
certificate programme, which will be
taught in September 2015. It is aimed at
participants with strong scientific,
medical, or technical backgrounds who
do not have an MBA or other advanced
degree in business.

t has also performed a more specific

educational role, acting as the
intersection between Tsinghuas
academic departments, says Ms
Mao. So far between 10 and 20 per
cent of all Tsinghua students are
involved in some way.
Stanford Ignite faculty director Yossi
Feinberg says that while New York is the
home of media start-ups and Silicon
Valley of biomedical and tech companies, there is demand across the board
in China. China is [into] everything.
There is a lot of low-hanging fruit.
The growing middle class in China
means high demand, but this can in turn
create issues, says Prof Feinberg. The
biggest problem to any venture in China
to me is the [low] barriers to entry. The
only barrier is, can you create something big enough so others cant enter
the market.
Now the entrepreneurial genie is out
of the bottle, Mr Wang says it is unlikely
the process can be reversed. His company resembles a US internet start-up,
with free meals and company-funded
holidays. Why would people who have
operated in this environment all their
working lives want to work for a stateowned enterprise, he asks?

Monday 8 December 2014

13

FINANCIAL TIMES

BUSINESS EDUCATION

Dean, businessman and social entrepreneur

Peter Tufano is aiming to
spread access to finance,
writes Jonathan Moules

new set of products in the US that seem

to be working fairly well.
The push to introduce prize-linked
savings is based on the success of such
schemes elsewhere. They tap into the
same impulse that prompts millions
worldwide to buy lottery tickets the
chance to win a prize. The difference
between lotteries and these savings
products is that the account holders
principal is not at risk. Rather than earn
a small but certain level of interest, they
get a chance to earn a large payout.

usiness school deans are well

versed in preaching the virtues of teaching entrepreneurship. Peter Tufano, dean
of Oxfords Sad Business
School, has gone one step further and
become a business founder.
The US-born graduate of Harvard
Business School co-founded Doorways
to Dreams, or D2D, a not-for-profit venture that aims to give low-income
households access to financial services.
As such he is in the midst of trying to
introduce a national system of prizelinked savings into the US, similar to the
UKs Premium Bonds programme that
has operated for more than 50 years.
The business idea came to him shortly
after securing his tenure as a professor
at HBS, when he visited south central
Los Angeles, a notorious neighbourhood with high poverty and crime rates.

Privilege
I realised theres a massive hole [in
thinking], both among academics and
in the business world, Prof Tufano
recalls. In the 1980s and 1990s the rush
was to serve the wealthy and increasingly wealthier and not serving the rest
of folks.
He returned to HBS determined to try
to understand how finance worked for
the majority of people, not just for those
studying at the business school, who

Soapbox

MBAs and the

human factor
As the financial crisis of 2008
recedes into memory it seems many
lessons have been learnt. Reforms
such as Basel 111, Dodd-Frank and
the Volcker rule aim to tackle the
problems that caused the last crisis.
However, these reforms will not
stop the next crisis because they do

The business
of education

Yft.com/women

Social entrepreneurship

Peter Tufano: I
think that the
work were able
to do can make
peoples lives
better Shaun Curry

were privileged enough to work for

some of the worlds largest companies.
I used to write on the board
. . . rather than help thousands of people make millions of dollars, lets help
millions of people make thousands of
dollars, and I decided I would do it.
My colleagues at HBS thought this
was just a statement that someone
would make to get tenure. It sounds
politically correct and they didnt
understand that I was serious about it.
He launched D2D in 2001 with Jeff
Zinsmeyer, a former senior executive at
the Bank of Bostons First Community
Bank, and Tim Flacke, who had just
graduated from the Masters of Public
Policy programme at the Harvard
Kennedy School of Government. Mr

not go to the heart of the matter

the problem of the flawed humans
who operate the financial system.
Business schools have done
much to improve business
competence, but in spite of some
exceptions, their teaching of
finance has not changed. For
example, they continue to teach
the capital asset pricing model,
populating the financial system
with quasi-engineers with minds
that resemble finely tuned
Ferraris, when what is needed are
robust 4x4s.

Zinsmeyer became the first executive

director of the D2D fund, while Prof
Tufano took the role of chairman.

Research and development

They started trading from a rundown
brick warehouse in Roxbury, Massachusetts, with half a million dollars in seed
funding from the Ford and Annie E
Casey Foundations.
D2D is essentially a research and
development operation to create innovative financial products for poorer customers that can then be delivered for
profit by financial services companies.
The space that were working in is
intellectually exciting as well as complex, says Prof Tufano. Weve changed
two big federal laws. Weve launched a

This is not good enough. Finance

MBAs need to be practical
humanists and the core of the
curriculum in MBA finance courses
should be learning to understand
human fallibility. MBA programmes
should be turning out modern day
practical philosophers who
understand the vicissitudes of
human affairs and who have a
strong sense of their human
failings. These students should be
imbued with ideas such as margin
of safety and the irrationality of the
market. They should recognise that

D2D has already run a pilot exercise in

Michigan, called Save to Win, after discovering a loophole in the US states laws
that allowed it to test the service with
credit unions. Under US federal law it is
illegal for banks to have anything to do
with something that could resemble a
lottery, so D2D is lobbying for Congress
to change this.
While D2D provides Prof Tufano with
practical experience of social entrepreneurship, he claims his main incentive
was to provide others with the kinds of
opportunities he knows he was lucky to
receive.
I grew up in relatively modest means
and I got lucky, quite honestly, a combination of winning some scholarships
and my family.
I can write cheques, I can go out and
paint playgrounds but the thing that I
know better than a lot of other people is
finance and in that space I think the
work that were able to do can make
peoples lives better.

the economic and financial world is

best understood as a complex and
unpredictable system which
individuals will never be able to
measure precisely.
It is only when the broad mass of
business school graduates,
especially those who major in
finance, understand these
teachings that the capitalist system
will be successfully and
permanently improved. Guy
Spier is the author of The
Education of a Value Investor and
runs the Aquamarine Fund.

Yft.com/mba-blog

Yft.com/video

1st
Yft.com/businesseducation/europe

Women in business
Tara Swart designed and runs
the neuroscience and leadership
course at MIT Sloan School of
Management. She believes there
is a connection between brain
function, physical wellbeing and
workplace productivity and
capability. Dr Swart trained as a
doctor and neuroscientist, and
practised medicine for several years
before deciding in her mid thirties
to move into consultancy work.
Second thoughts
Most students start their MBA with
a detailed road map about their
future career. But, as Merih
Ocbazghi discovered, plans often
fall apart once recruiting begins. As
banks and consulting firms arrived
at Kellogg School of Management,
the MBA blogger saw his peers
reconsidering their futures: for
example, committed, would-be
consultants suddenly understood
the appeal of investment banking.
The hard edge of green economics
The circular economy the design,
manufacture and use of products
that can subsequently be
re-manufactured and re-used is
beginning to attract the attention
of companies.
However, Jon Reast, dean of
Bradford University School of
Management, says that it is not the
environmental arguments but the
economic ones that are winning
over these corporates.
Did you know
HEC Pariss Executive MBA
programme, taught jointly with the
London School of Economics and
New York Universitys Stern School
of Business, is top for the average
salary of its alumni three years after
graduation at around $307,000.
London Business School heads the
MBA pay ranking with an average
of $157,000 according to data in the
FT European business school
ranking 2014.

14

FINANCIAL TIMES

Monday 8 December 2014

BUSINESS LIFE

After 15 years of
practice, why
are we still so
awful at email?

Last week I got an email that went like

this. Dear colleagues, Please join me
for the next Global Conversation
webcast on December 10th. All the
details are in my blog post. Best
It was short and snappy, which was
good. It was clear and fairly free of
jargon, which was also good. Yet it still
managed to needle me in three
different ways. For a start, I prefer an
email to contain the facts rather than
an invitation to find them elsewhere.
Although I enjoy good conversation as
much as the next person, the thought
of a Global Conversation webcast was
lowering. And Best is among the
worst email sign offs, beaten only by
very best and bestest in that
order.
Given my flair for finding jarring
things in the briefest, most anodyne
message, I got excited last week when I
saw someone tweeting a Fast Company
article about the most annoying email
habits.
Some of these were news to me. The
biggest crime, the magazine said, was
not putting a telephone number on
your email. I never reveal my mobile
number to strangers for the excellent
reason that I do not want them to ring
me on it. One of the least annoying
things about email is that it is a lot less
bothersome than a phone call.

Lucy Kellaway
Onwork

The article also objected to emails

that simply say Thanks, on the
grounds that such messages waste the
recipients time. This is nonsense. As
the average adult reads 250 words a
minute, surely even the most crazybusy executive has 0.004 minutes to
spare on this single, polite word.
But the bulk of the annoying things
singled out by the magazine making
emails too long, overusing reply all,
putting cheesy aphorisms at the
bottom are things I agree with. They
are also things that only the deranged
could disagree with, which raises the
interesting question: if these things are
so universally known to be
aggravating, why do people go on doing
them?
One of the greatest puzzles about
email is that despite the fact that we
have spent several hours a day for the
past 15 years practising, we are failing
to show any improvement. Even on the
basics, we are as clueless as ever.
What is the right way to start an
email? Far from a consensus emerging,
the salutation chaos goes on getting
worse.
The tension between the formal and
colloquial is far from resolved. In my
inbox there are some examples of
Dear Sir/Madam as well as plenty of
messages beginning Hey. Last week

my garage bravely attempted to solve

the problem with a message that
began: Hi Miss Kellaway.
I detect two new trends emerging in
greetings, both bad. One is to start
messages with Good morning or
Good evening. This grates both for its
fake heartiness and because it assumes
that the recipient is in the same
timezone and so hooked on email they
open all messages immediately. The
other is to start baldly with All, which
is badly missing the Dear that should
come before it.
Sign-offs are getting worse too. There
are as many Cheers, Kindest Regards
and Very Bests as ever, but there is a
new tendency to pile on the
pleasantries one on top of another. I
received an email last week that ended,
I look forward to hearing back from
you. Many thanks and speak soon.
With very best wishes.
This reminds me of the man who
runs our local corner shop, who always
says, All the best, see you later, cheers,
bye-bye, as customers leave. English is
a new language for him, and I dare say
he will get the hang of it in time. But
will emailers? Its not looking
promising.
Even more annoying than any of the
above is the recent development of the
read receipt, which demands your

I detect two new

trends emerging in
greetings, both
bad. Sign-offs are
getting worse too

Monday interview. Ed Richards, Ofcom CEO

The UK media watchdogs

head tells Daniel Thomas
about the Murdochs,
market convergence and
steadfast impartiality

Sofa diplomacy:
Ed Richards
has handled a
variety of tough
negotiations
with media and
telecoms leaders
in eight years
at the top
of Ofcom
Charlie Bibby

Second
opinion

Analytical
pragmatism

Leveson inquiry into the behaviour of

the British press, instigated after phone
hacking by newspaper journalists.
We didnt dodge the post but we
dodged Leveson, says Mr Richards.
His biggest battle perhaps the biggest threat to Ofcom itself involved
both the government and the Murdoch
family after Ofcom refused to clear unconditionally the 2010 proposed takeover by News Corp of BSkyB, the paytelevision group in which it held a 39 per
cent stake, in spite of perceived government support for the deal.
It was a tough and challenging
period, he says. It was also cut short
unexpectedly. In 2011, revelations of the
phone hacking in 2002 of the voicemail
of murdered schoolgirl Milly Dowler by
the News of the World emerged and the
political current moved sharply against
the takeover of BSkyB. Ofcom was vindicated for having initially held out, Mr
Richards feels, for an honest and tough
call but that was the right thing to do.
Few say Mr Richards has ever left his
position of strict impartiality, a consistency seen as crucial to survive changes
of government. Ofcoms decisions are
rarely universally liked, but those who
have dealt with Mr Richards say that is
probably a measure of success.
He even survived a high profile tilt at
the BBC director-general job in 2012. He
laughs off the application as a random
event . . . it was there and I thought why
not, although it led to questions over
his role as the broadcasters regulator.
The BBC licence fee renewal process
Stephen Carter, chief executive of
Informa, hired Ed Richards when head of
Ofcom and then worked alongside him
as a government minister.
He is very smart, very analytical and
always looking for evidence-based
decision-making. He can be pragmatic;
however, he never takes himself too
seriously I found him highly enjoyable
to work alongside, and always saw in
him a deep belief in the importance of
effective public administration.

CV
Born 1965, Barnstaple, Devon
Education BSc (Econ), London School of
Economics, MSc (Econ) LSE, Harvard
Business School (Advanced Management
Program)
Career
1988-1993: Researcher, Diverse TV
Production; policy officer, National
Communications Union; adviser to
shadow chancellor of the exchequer
1993-1995: Senior consultant, London
Economics
1995-1999: Controller, corporate strategy,
BBC
1999-2003: Senior adviser to the prime
minister: internet, telecoms, media and
e-government
2003-2005: Senior partner, strategy and
market developments, Ofcom
2005-2006: Chief operating officer,
Ofcom
2006-2014: Chief executive, Ofcom
Family Married, two children
Interests Music, theatre, TV, radio, film,
watching sport and reading fiction

has now been pushed back until after

the 2015 election. I am not yet persuaded that there is a better alternative
to the licence fee, he says of the continuing debate over how the public broadcaster is funded.
This prompts him to sum up the other
big issues facing Ofcom.
Commercial broadcasters, he says,
also face challenges given how people
consume video, and [in competing
with] the companies around the world
who are buying content, they need to
stay on their game. Ofcom will need a
guiding hand on this, he says, acknowledging the increasing difficulty of regulating broadcasts from outside the UK,
which are often watched online. For
example, there are concerns about
product placement on YouTube videos.
Competition in pay-TV has improved,
he says, but pricing to the user remains
an issue. This will be looked at by his
successor as part of a complaint by Virgin Media into how sports rights are auc-

lucy.kellaway@ft.com
Twitter: @lucykellaway

Working smarter

Master of a balancing act

t is a small wonder that Ed Richards
has lasted as long as he has as head
of Ofcom, one of the UKs most
influential industrial regulators,
with oversight of the turbulent
media and telecoms markets.
The youthful looking chief executive,
who steps down at the end of December,
has undoubtedly served his time after 11
years, eight of them in the top role. As
one of the architects of legislation that
created the watchdog from the ashes of
the unloved Oftel in 2003, he in effect
wrote his own job description.
In doing so, he was also helping to
draw up the blueprint for how digital
media and communications would
operate. Yet few of the regulators decisions have not involved intense debate
that sometimes tipped over into headline-grabbing controversy.
It is a subtle balancing act, says Mr
Richards, reflecting on the conflicts that
arise from dealing with the big business
and consumer interests that have summoned some tough characters to the
black sofa in his corner office overlooking the river Thames.
Among them the Murdoch family,
who have faced him across the table on a
number of occasions as Ofcom came to
contentious decisions around the role of
media and ownership rules.
The Murdochs fight their corner like
everyone else, says the unflappable 49year-old. There have been a lot of
tough people sitting on that sofa. These
are big companies and they all fight
their corners in different ways.
There is little in the office to take with
him when he leaves a couple of
shelves of industry books and the
clean desk and nondescript Ofcom posters on the wall create an austere impression. Many of his meetings with industry figures are held here. I might have
been to the Ivy, he muses of the
expense-account media hang-out, but
if so I cannot remember when.
A television set and ham radio equipment are the only giveaways as to the
scope of a job that has earned him more
than 380,000 a year but there are few
personal touches. I have been inseparable from Ofcom, he says of his desire
to keep outside interests distinct from
professional life.
The London School of Economics
graduate flirted with a media career as a
runner for a TV company and in a strategy role at the BBC, but he was always
close to New Labour, first as an adviser
to Gordon Brown, then Tony Blair and
other senior politicians.
As a staunch Blairite or a Labour
stooge, according to the Daily Mail it
seemed his days were numbered under
the incoming coalition government in
2010, since the Conservative party had
said Ofcom would be among the first to
burn on a bonfire of the quangos if it
were elected.
Ofcom is an independent body but it
has a high-profile role in Westminster
where opinions on matters such as
newspaper and TV ownership can shift
with the days headlines.
But five years after those threats,
Ofcom is stronger than ever. It has even
expanded its remit to the regulation of
postal services. However, it avoided taking on all press regulation following the

permission to let the sender know you

have opened their dratted message.
Not Now, I always click irritably, deeply
regretting that there is no button that
says Mind your own flaming
business.
Given that email is getting more
aggravating all the time, what is
encouraging is that it gets to me less
than it used to. This might be to do
with the mellowing that comes with
age.
But there is also an element of, ifyou-cant-beat-em-join-em.
Exclamation marks, which I used to
despise, are now sprinkled throughout
my messages in an abandon of Great
news! Delighted! And Lovely! It cant
be long before smiley faces, which used
to bring on a feeling of shrinking
revulsion, start appearing too.
However, the main reason emails
annoy us less is that while we have got
no better at writing them, we are far
better at reading them. Which is to say
we have got far better at not reading
them. Irritating messages hardly grate
at all any more because those that
make it through our admirable filters
can be swiftly sent on their way by
pressing delete.

tioned. It claims customers are forced to

pay too much to watch games on TV
because of the inflation of prices for Premier League football rights.
Then there is the need to rethink the
way Ofcom regulates its various markets, which increasingly overlap as telecoms groups buy TV services and content, and media groups look to add
mobile and broadband services. This
convergence was anticipated in Ofcoms
mandate, but the acceleration has taken
many by surprise as various deals are
discussed between telecoms groups and
media companies.
Other jobs also await the next Ofcom
head such as preparing for the next
stage of ultra-fast broadband services,
ensuring mobile and broadband coverage plans are completed, and improving
communications services for smaller
businesses.
But, he says, the UKs media and communications market is in better shape
than many realise. People may say that
Ofcom didnt do this quite right, or that,
but if you look at the bigger picture the
UK has got the lowest prices in any comparable economy, some of the best
choice and competition.
So why has he stood down? He has calculated the move precisely: You should
do jobs of this kind when you are on top
of your game and in my experience
thats six to 10 years. After 10, people
can tail off, and before six people cant
make a difference eight years is somewhere between the two.
He has no job lined up for when he
walks out of the office for the last time.
His wife is standing for parliament as a
Labour party candidate in the general
election next year, but he doubts he will
get heavily involved in the campaign.
In fact, his mind is focused on Christmas, which is always a busy, if not joyous, time for Ofcom. You never know
what will happen you can get some
broadcast that causes terrible offence,
he grimaces at memories of race rows on
Big Brother and Russell Brands Sachsgate prank call controversy. I assume
any of that could break over Christmas.

Lessons from an office that

gave lay-offs the boot
EMMA DE VITA

1 Many businesses want to

portray themselves as one
big happy family but Next
Jump, a US employee loyalty
reward company, has gone a
step further with its no fire
policy. We think of hiring
someone more like adopting
them into the family, says
co-founder and UK
managing director Kevin
McCoy. You wouldnt fire
your own kid, would you?
Some might disagree.
In theory, a Next Jump
employee cannot be sacked
for poor performance.
Instead, their manager is
expected to coach them into
improvement or, if that fails,
move them into a different
role. Unsurprisingly, Mr
McCoy admits managers
desperate not to make a bad
hire have become
reluctant to fill positions.
Not only does the
company claim not to sack
anyone, it says it would not
make anyone redundant.
There would need to be
two massive economic
disruptions simultaneously,
lasting 24 months or longer,
for us to even consider layoffs for economic reasons,
says Mr McCoy. If we found
ourselves in such a dire
economic time, I still believe
we could find a way to
survive and not lay people
off.
The no fire policy is
informed by Next Jumps
turbulent history. Founded
20 years ago, it grew to 150
people before the dotcom
bubble burst in 2001, when
Mr McCoy became one of
only four surviving
employees. The experience
was clearly traumatic.
No fire was introduced
in 2012 to improve Next
Jumps culture and foster a
sense of long-termism. Mr
McCoy claims that a greater
sense of security has
pushed up productivity and
innovation. Staff have also

become more open about

their weaknesses. Though
no employee has been fired
in the past two years, Mr
McCoy does admit that
some left early on by mutual
agreement.
Is such commitment to a
worker worth it? Two years
down the line, no fire is still
in its infancy. What will the
tricky teenage years bring?

Less time in the office

may not improve life
1 South Korea has some of
the longest working hours in
the developed world 50
hours a week on average.
This statistic worried the
government so much that in
2004 it sought to reduce
office hours. Has it helped?
Not according to research
published in the Journal of
Happiness Studies, which
found that workers did not
become more satisfied with
their job or indeed their life
when a 10 per cent
restriction on hours was
imposed. Why? Perhaps
because the reduction was
too small to have any real
effect. Or worse, because
workers had to squeeze the
same amount of work into a
smaller number of hours.

Loosening the reins in

a family business
1 Sir Rocco Forte, chairman
of Rocco Forte Hotels told
The Sunday Times of the
perils of mixing family with
business: [My father] was
always extremely worried
that Id make a mistake so he
never really gave me any
authority, until I did have a
lot of authority when if
you made mistakes, you
made big ones. So, with my
daughters, Ive given them
authority in the areas they
control. They have the
respect of the people in the
company.
workingsmarter@ft.com

Feedback
In his column last week,
after his train was delayed
again this time by a swan
on the line Andrew Hill
argued that employers
should find ways to
alleviate the pain of
commuters. Readers
agreed:
Companies should do much
more to help employees
work from home on a
regular basis. Obviously,
companies need to ensure
that the work gets done to a
consistent standard and a
minority of people need the
discipline of a workplace.
Even if 20 per cent of those
currently commuting
were able to work
from home
regularly,
just think of
the reduction in

pressure on the transport

systems, to say nothing on
the sanity of those involved.
daviddunn
If development was a better
mixture of commercial and
residential, journey
endpoints would be more
spread out and the process
more tolerable, some of us
could decide to live more
locally and the total
environment would be a bit
more human. cockney dave
Working from home
makes complete sense.
But if workers did work
from home without the
watchful eye of a
manager overseeing
them it would prove
that a chunk of
managers arent actually
necessary. FA

Monday 8 December 2014

15

FINANCIAL TIMES

ARTS

Riverside world has

lost none of its magic
DANCE

The Wind in the Willows

Vaudeville Theatre, London

aaaaa

Louise Levene
Yuletide balletgoers with a nut allergy
might want to try the latest revival of
Will Tucketts 2002 adaptation of The
Wind in the Willows, enjoying a festive
run at the Vaudeville Theatre with a
new guest narrator.
Alan Titchmarsh isnt required to
dance (file this one under Small Mercies) but the gardener-turned-TV personality has picked quite a challenging
role for his West End stage debut. Tucketts narrator doesnt merely sit on a sofa
and read from an autocue but Titchmarsh proves a game participant. His
mild Yorkshire accent is a good fit with
Kenneth Grahames elegiac celebration
of home and countryside. His delivery is
slightly shouty and becomes a mite garbled during the almost patter-like
action sequences in Andrew Motions
multi-layered text, but 57 performances
should see to that.
The Quay Brothers ingenious transformations drew constant coos of
approval: the attic wardrobe serving as
gypsy caravan or judges bench; the bars
of a Windsor chair becoming Toads
prison cell. The furry chums are conjured with the simplest of means: a few
whiskers, a pair of ears with all other

characteristics supplied by Martin

Wards score and by Tucketts expressive and characterful choreography.
Martin Harveys raffish and resourceful
Ratty shows off his Royal Ballet pedigree
in a flurry of bravura steps. Mole is all
foetal fidgets, Toad leaps and twitches
like a maniacal puppet.
The first act takes its time establishing the warm beer world of the riverbank but things hot up with the arrival
of Mr Toad, performed with demonic
glee by Cris Penfold in FotheringtonThomas curls and tartan plus-twos.
His motor car (worn around his waist on
braces) appears in a zesty interval chase
through the theatre foyers to prepare
the audience for an action-packed
second half in which Grahames
Edwardian idyll is menaced by an oikish
band of weasels led by the hilarious
Ewan Wardrop.
Wardrop, a veteran of Matthew
Bournes Adventures in Motion Pictures
company, is on terrific form in all three
of his roles. His lovelorn gaolers daughter is a masterclass in physical comedy
as he capers through the soulfully silly
handkerchief duet, sniffing his armpits
and dropping a shoulder strap in happy
anticipation of romance. Witty, tender,
utterly captivating.
Until January 17, roh.org.uk

JA Z Z

Bobby Avey
Pizza Express Jazz Club, London

aaaae

ARTS VIDEO

Mike Hobart

Christmas past
and present
Griselda Murray
Brown visits
the Geffrye Museum
in London to explore
our changing views
of the festive season

Bobby Aveys dense rhythmic mesh of a

first set was inspired by the Haitian
slave rebellion of 1791, which the
pianist/composer described as the only
slave rebellion successfully to eliminate
slavery. The American was launching

ft.com/christmaspast

T H E AT R E

The Elephant Man

Booth Theatre, New York

aaaee

Brendan Lemon

his CD Authority Melts From Me, a continuous suite whose bone structure, he
said, was drum patterns transcribed
from field recordings of a Haitian village
vodou ceremony. He used them to build
a layered, complex and coolly intense
work that is far removed from the
trancey throb of voodoo stereotype.
The evening started with a scramble
of rhythm that gradually coalesced into
austere M-Base funk. An oblique riff
from stand-in bassist and album producer Michael Janisch set the scene; Ben
Monders abrasive guitar fleshed out the
detail. The theme, when it arrived, was a
sparse sprinkle of sustained notes from
alto saxophonist Miguel Zenn, pitched
on the chromatic edge of the harmonies
that lay beneath.
Aveys suite alternated tensionbuilding improvisation with unaccompanied interludes, the first from piano,
the second an impressively controlled
multi-rhythmic march from drummer
Jordan Perlson. Mirroring the composers approach to piano, the ensemble
moved from thick, multi-textured
clumps to sparse lines that hovered
percussively at a barely audible volume.
At the compositions heart, a grid of

Music New albums reviewed

Pop
By Ludovic Hunter-Tilney

Walter Arlen: Die

letzte Blaue
Daniel Wnukowski
Gramola

Public Enemy

aaaae

It Takes a Nation of Millions to

Hold Us Back/
Fear of a Black Planet
Def Jam/Universal

aaaaa

The twin high points of

Public Enemys career are
being given the deluxe
reissue treatment as part
of Def Jams 30th
anniversary celebrations.
But a different event has
conspired to make their
reappearance timely: the
unrest sweeping the US
following the police shooting
of a black teenager in
Ferguson, Missouri.
Originally released in 1988
and 1990 respectively, It
Takes a Nation of Millions to
Hold Us Back and Fear of a
Black Planet signalled the
brief heyday of black-power
politics in rap music: beats
raised like clenched fists,
samples liberated from other
music in a property-is-theft
spree, Chuck Ds militant
sermons. Extras include
remixes and curiosities,
more diverting than usual
due to the Bomb Squads
remarkable production
skills. Meanwhile, the actual
albums sound shockingly
current, an angry message
from 25 years ago that hasnt
yet been heeded.

Bring the noise: Public Enemy in their 1980s heyday Getty

Reasons to Die, starring in a
gore-drenched tale of
treachery and revenge set in
the days of wah-wah guitars,
crackling vinyl, boom-bap
beats and hard-boiled
action. The story tells of
Ghostfaces alter ego Tony
Starks returning to Staten
Island after nine years
absence to find a rival don
bossing his patch and
wooing his moll. Not on! But
Starks gets set up by a
corrupt cop (a superb turn
by Nas associate AZ), which
leads to disfigurement in a
bomb attack. Surgical
intervention from Dr X
(played by Pharoahe Monch)
sends a masked Ghostface
back out to gain vengeance.
Sharp soul and funk
pastiches are provided by
Brooklyn band The
Revelations, Ghostface
attacks his verses with
customary verve and other
guests include New York
hardcore rap pioneer Kool G
Rap as his rival.

Ghostface Killah
36 Seasons
Salvation Records

aaaae

King Gizzard & the

Lizard Wizard

A semi-engaged presence on
the Wu-Tang Clans new
album A Better Tomorrow,
Ghostface Killah turns up the
temperature for this solo
outing. It finds the rapper in
the B-movie soundtrack
mode of last years Twelve

Im in Your Mind Fuzz

Heavenly

aaaee

King Gizzard & the Lizard

Wizard have taken the
psychedelic urge for
exploration too far with their
awful name. But the

Australians are on surer

ground musically.
Metronomic drums channel
krautrock, howling guitars
fire like synapses in an
overstimulated brain, riffs
are repeated like mantric
recantations, vocals have a
dreamy, faraway timbre. Its
unoriginal (Cellophane is
pure Can pastiche) but the
energy burns bright.

The last blue was the

late-night tram in prewar
Vienna. It is a memory
steeped in sadness for
Walter Arlen, who lost
family, livelihood, and a
likely future as a composer
as a teenage exile from the
Nazis. Now 94, he is hearing
much of his music for the
first time and this two-disc
selection of small-scale
pieces provides an idea of
what was lost. Here are
intimate piano solos,
nostalgic songs and
bittersweet violin music.
Daniel Wnukowski is the
devoted pianist, well
supported by violinist
Daniel Hope, and singers
Rebecca Nelsen and
Christian Immler.

Classical music
By Richard Fairman
Jazz
By David Honigmann

Strauss: Vier letzte Lieder

Anna Netrebko
DG

aaaaa

Given Anna Netrebkos huge

popularity in Germanspeaking countries it is a
canny move for her to take
up some German repertoire.
The star Russian soprano
should not be right for
Strausss autumnal Four Last
Songs but she sings them
with such individuality, and
an opulence of voice and
colour, that doubters should
be silenced. Daniel
Barenboim and his
Staatskapelle Berlin
accompany her eloquently
and then add a performance
of Ein Heldenleben that revels
in understated, echt German
musicianship of long
tradition an unusual treat.

Various Artists
Duduvudu: The Gospel According
to Dudu Pukwana
Edgetone

aaaae

Dudu Pukwana was one of

the golden generation of
South African jazz
musicians who went into
exile in the early 1960s.
Pukwana ended up in
London, and Duduvudu sees
many of his confrres from
the time (Annie Whitehead,
Harry Beckett) paying
joyous tribute. Though not
always faithful in details (the
electric piano on Diamond
Express, for example, is a
far cry from marabi), it is
always true to the spirit of
his music and its gospel and
blues roots.

Demonic: Chris
Penfold, centre,
as Toad. Below
right: Bradley
Cooper in The
Elephant Man
Johan Persson
Joan Marcus

single-note lines in perpetual motion

moved in unexpected ways. The suite
ended with fading, unresolved ripples
from Aveys piano that captured the
bittersweet emotions of the final movements title, Cost.
The second set presented four Avey
originals, including a complete and
slightly ethereal reimagining of Joni
Mitchells Woodstock Janischs bass
feature, alternating dexterity with
silence, was an evening highlight. As in
the first set, chromatic melodies sat on
clusters of rhythm, and each composition went through many changes.
Aveys band is full of character and
each musician showed his mettle and
brought demanding music to life.
Guitarist Monder combined jazz
fluency with a gritty avant-rock
aesthetic, Avey classical modernism with modal jazz and Janisch
and Perlson both delivered power
and finesse. Zenn, though, was the
standout, building snakey lines and
hard-edged riffs, flurries of notes
and soft, lingering vibratos into long
constructions that gathered in intensity.
pizzaexpresslive.co.uk

Never seen The Elephant Man onstage?

Then the Broadway revival of this 1977
play, by Bernard Pomerance, will provide a palpable sense of the dramas clear
storytelling and elegant dismantling of
Victorian hypocrisies. The two-act
eveningalsoprovidesachancetogawpat
a shirtless Hollywood celebrity, Bradley
Cooper, just as 1880s London gaped at
theseverelydeformedmanheisportraying,Joseph(hereJohn)Merrick.
What the cast, under the direction of
Scott Ellis, does not bring out so well is
Pomerances humour. Previous productions had audiences in stitches. When
Mrs Kendal, a well-known performer,
visits Merrick at the London hospital
whereheisgivenquarterformanyyears,
her tales of playing Romeo and Juliet were
uproarious. PatriciaClarksonmakesMrs
Kendalmoreamusingthanactressy.Like
the cast and production in general, she
resists embracing the plays melodramaticaspects.
But the play begins, of course, in
penny-dreadful fashion: Merrick is on
display at a freak show. Rescued by the
kind physician Frederick Treves, given
fine, handsome bearing by Alessandro
Nivola, Merrick begins to blossom. Aristos take up his acquaintance, exclaiming:
he is an Englishman. In exchange, Merrick softens his rage. When he is brought
to the hospital, a porter is sacked for staring at him, and Merrick comments, If
your mercy is so cruel, what must your
justice be like? However, as Merrick
morphs into a more conventional gentleman, Treves realises, belatedly, the
costofthetransformation.
Elliss staging echoes elements of
the original Broadway production,
whose greatest Merrick, by the way,
was David Bowie. The wooden stage
is raked and curtains are pulled to
shift scenes. With his mouth pulled to
the left, and his right arm extended,
Cooper works hard to conjure the character. If the effect is slightly hollow, the
performance, and the production, are
atleastbroadlysatisfying.
elephantmanbroadway.com

16

Monday 8 December 2014

Explore more sports data

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

RG3 joins
the bench of
fallen heroes

Sam Burgess: Englands new great hope

Four of rugby
leagues finest
Data per match*

Bes
t

t
Bes

Tamed: Griffin is sacked by Houston Texans in September. Playing in the pocket has not come easy Thomas B. Shea/Getty

Jurek Martin

GH

Todays temperatures
1020

1030

41

ACROSS
1 Singer born in grand Merseyside
town (4,6)








6 Almost bald celebrity (4)
9 Group from golf club, by first
(4,6)


10 Boast in British newspaper (4)
12 Collection of books to be found

in mates tent, by implication?

(3,9)
15 Lawman with newly formed Tea


Party (5,4)



17 Date long depression (5)
18 Ring in private (5)
19 Strike front of ship, with 50 on


vessel (9)
20 Salesman Ren, in tune,
possibly, with Rex, a middleman


(12)


24 Last of such fish in list (4)
25 Trendy school and capital variety


theatre (10)
26 Obscure English coin (4)


27 Cruel men tortured American
fictional character (5,5)
DOWN
A prize of The Good Word Guide by Martin Manser and How to Sound
1 Barrister forgoing fine cheese (4)
Clever by Hubert van den Bergh will be awarded for the first correct
2 One dubious name for a volatile
solution opened. Solutions by Monday December 15, marked Monday
Prize Crossword 14,799 on the envelope, to the Financial Times, 1
gas (4)
Southwark Bridge, London SE1 9HL. Solution on Monday December 22. 3 They may be running moment
.............................................................................................................
race is off (12)
............................................................................................................. 4 Poet from Brentwood is talented
(5)

MONDAY PRIZE CROSSWORD

No. 14,799 Set by FALCON

Sun
Hail
Thunder
Sun
Sun
Sun
Cloudy
Sleet
Rain
Sun
Sleet
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Sun
Sun
Sun
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Fair
Shower
Cloudy
Fair
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Thunder
Shower
Sun
Thunder
Sun
Sun
Fair
Sun
Snow
Sun

28
6
16
32
15
4
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3
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4
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18
26
28
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4
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21
15
32
24
31
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7
23
2
11

Malta
Manila
Melbourne
Mexico City
Montreal
Moscow
Mumbai
Munich
Nairobi
New York
Oslo
Paris
Perth
Prague
Rio
Rome
San Francisco
Seoul
Shanghai
Singapore
Stockholm
Sydney
Taipei
Tokyo
Toronto
Vancouver
Venice
Vienna
Washington
Wellington
Yangon
Zurich

Sun
Thunder
Drizzle
Sun
Fair
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Sun
Cloudy
Drizzle
Cloudy
Fair
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Sun
Fair
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5 Decorative item from Paris bent,

unfortunately (9)
7 Appropriate steps taken at the
Christmas dinner dance? (6,4)
8 Appropriate lament, we hear, for
a hunted creature at sea (5,5)
11 Part of motorway difficult to bear
(4,8)
13 Fish as it thawed out (6,4)
14 Style of jazz, most important,
and current (10)
16 Slander a small individual I
introduced (9)
21 Plane crashed in Asian country
(5)
22 In favour of male cast (4)
23 Disorder in Times Square (4)

SOLUTION 14,787
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The winners name will be published

in Weekend FT on December 20

between the quarterback and the coach,

played out through press leaks, the oldschool Shanahan method, and Twitter,
where the thoroughly modern RG3 had
his nest (next to Mario Balotellis).
Snyder fired the coach and kept the
quarterback.
This year, under yet another
coach straight-talking Jay Gruden
things went from bad to worse. RG3
fractured an ankle, and, on returning,
looked lost, immobile and indecisive
in the pocket.
He blamed his teammates for their
shortcomings true, but not smart to
say. Gruden publicly criticised his
manifold technical shortcomings. Steve
Young said RG3 did not do his
homework and he should know, as
the quarterback, good enough to
replace the incomparable Joe Montana
in San Francisco, who learnt how to use
his own fast legs judiciously. Finally
Gruden benched Griffin, and Snyder did
not object.
In the public eye, on talk radio and
social media, the worm turned against
RG3 with a vengeance almost painful to
behold. He was a narcissist, would never
play for the Redskins again, his trade
value had plummeted unless, of
course, Barcelona beckons.

Metres
made

Worst
Bes
t

success. (Superb New England have had

one of each since 2001.)
But salvation seemed to have arrived
in 2012 with RG3. The Redskins
mortgaged their future to get him,
surrendering three first-round picks in
the college draft. But in that glorious
first year he was electric, faster in
cleats than Usain Bolt, throwing lasers
down field.
Even before he took the team to the
play-offs, RG3 was all over the media,
endorsing everything made in America
on TV and venting his always upbeat
thoughts to a gazillion followers on
social media.
Some wiseacres grumbled that it was
impossible to play quarterback in the
National Football League for any length
of time with his abandon without
getting seriously injured, and that he
needed to learn how to play in the
pocket, behind his offensive line,
reading defences, only running when
necessary, like all the great ones do.
And in that play-off game, one hit
messed up his knee.
He wore a brace on it in 2013 and it
showed. Late in the losing season, his
veteran coach, Mike Shanahan, sat him
down for the rest of the year for health
reasons. By then there was bad blood

Runs

Bes
t

t
Bes

Attempted tackles

Abu Dhabi
Amsterdam
Athens
1040
Bangkok
4
Barcelona
eoul
Beij
Beijing
G
1020
Berlin
okyo
10
Brussels
25
slama ad
1010
Budapest
Sha hai
Buenos Aires
Chicago
Delhi
2
Copenhagen
Kolkat
aipei
28
Dallas
21
ong Kong
Delhi
mbai
noi
Dubai
3
Ya
Dublin
26
1010
Edinburgh
M
B
k
Frankfurt
140
HAGUPIT
Geneva
Ho
i Minh City
Hamburg
Colombo
Hong Kong
uala
Brun
30
2 L mpu
Istanbul
Jakarta
Si apore
Johannesburg
Karachi
3
Kuala Lumpur
Kuwait
3
Lisbon
London
Los Angeles
Forecasts by
Wind speed Luxembourg
in KPH Madrid

1050

Tries

Successful
tackles

1030
1030

Sam Burgess
Sonny Bill Williams
Paul Gallen
James Graham

t
Bes

To most people on the planet RG3

sounds like one of the robots from Star
Wars. In Washington DC, and in footballobsessed America, RG3, aka Robert
Griffin III, is known as the quarterback
(the position around whom teams
revolve) who has fallen faster and
further from a state of sporting grace
than just about any professional athlete
in living memory.
Lance Armstrong, his cycling
achievements irrevocably tarnished,
and Luis Surez, the biter-in-chief who
is in rehab in Barcelona, suddenly have
company.
The story is about the man, but just as
much about the city, long starved for
sporting success, and the contemporary
environment with its fickle social and
sports talk media, RG3s chosen milieu.
Their common denominator is a
testosterone-driven hyperbole that
lives entirely in the moment and that,
having lifted expectations to the skies,
turns vicious when disappointed.
But first Washington: its baseball
Nationals are currently good, but the
franchise has not won a World Series
since Hoover was president; the
basketball Wizards last championship
was under Carter, when they were the
Bullets and based in Baltimore; and the
ice hockey Capitals are still waiting for
hell to freeze over.
The Redskins, though, are the
particular local passion, far exceeding
all others, winners of three Super Bowls,
the last when Papa Bush occupied the
White House. Since then they have been
pretty bad, though the passion
remained, in the media and among the
public. Even the controversy over
whether the teams name was
demeaning to Native Americans was
brushed off by the faithful as an
unnecessary intrusion of political
correctness.
They were bought 15 years ago by Dan
Snyder, a prickly marketing mogul who,
like many sporting owners, thought he
knew more about the game than those
steeped in it. Addicted to famous
names, some long over the hill, the team
have had eight head coaches and 16
starting quarterbacks in his time, not
exactly a recipe for consistency or

The Baseline

Offloads

Bes
t

t
Bes

Line
breaks

Crash balls

Source: NRL.com * Best and worst refer to all NRL players

JOHN BURN-MURDOCH
AND GAVIN JACKSON

Sam Burgess made his debut in rugby

union the Friday before last. Before
that the 25-year-old had only ever
played league professionally. Now he
is on a fast track into the England side
ahead of the Six Nations in February
and is the great hope for the World
Cup later in the year.
But just how good is he?
In every key category for his position, Burgess is among the best,
based on data from Australias
National Rugby League.
He is ranked second for runs at the
opposition with the ball, third for distance covered with the ball, and is
in the top 10 for crash balls and
offloads, where he draws opponents

FT graphic Graham Parrish. Photo PA.

towards him to create space, before

delivering the ball to an onrushing
team mate.
Like New Zealands Sonny Bill Williams before him, what makes Burgess a strong candidate for a successful code switch is that not only does
he have the big physique and athleticism that come with success as a forward in league, but he combines
these with technical skill and an
unerring ability to find gaps in the
opposition defensive line.
Looking at the very best of Burgesss positional rivals in the NRL,
ground coverage, big tackling and
crash balls are there in spades.
Where Burgess stands out is in his
contribution to try scoring and the
number of line-breaks he makes.

Monday 8 December 2014

17

Australian banks Crisis-proofing the countrys

biggest financial institutions

Indonesian start-ups Internet investors seek

foothold in emerging Asian ecommerce

PAGE 19

BEN BLAND, PAGE 18

UK regulator
to review bank
penalties as
fines soar

Boxing clever
Milan uses telematics to tackle traffic problems

JAMES SHOTTER ZURICH

DANIEL SCHFER LONDON

Concerns that cost of forex and Libor

scandals are affecting banks capital
CAROLINE BINHAM LONDON

The UKs financial regulator is to review

its fining regime amid increasingly
anguished cries from banks over the
inexorable rise of penalties.
Fines by the Financial Conduct
Authority have hit record levels after
investigations into the alleged rigging of
Libor interest rate benchmarks and the
foreign exchange market.
The FCA has meted out 1.39bn in
penalties since April, more than triple
the 425m levied in the whole of the
2013-14 financial year, which at the time
was a new high.
Almost all of this years total is attributed to the 1.1bn that five banks paid
to the FCA last month to settle allegations that they attempted to rig forex,
one of the biggest financial markets in
the world. The fines were part of more
than $4bn in penalties paid by seven
banks to US, UK and Swiss authorities.
The record-breaking total comes
amid concern that City scandals and
resultant fines are weighing on banks
capital. Andrew Bailey, deputy governor
of the Bank of England, has said that
authorities around the world should
better co-ordinate their penalties.
This is not a penalties race, said
Georgina Philippou, an FCA director of
enforcement strategy, at the regulators
biennial conference last week at which
the figures were presented. We are not
competing against any other regulator
in the world.
The FCA fines have increased not only
because of benchmark-rigging probes
but also because a new penalty regime
that allowed for higher fines for wrongdoing found since 2010 is now taking
effect. Ms Philippou revealed plans for

the watchdog to review how well the

new regime is working.
We believe that we now have enough
cases to pause and take stock and we
plan to start a review of our penalty policy in the next financial year, she said.
The current regime gives the FCA the
discretion to bump up fines to act as a
deterrent.
The watchdog explicitly increased
fines on banks in the forex probe
because they had not learnt key lessons
from the earlier and similar Libor inves-

1.4

bn
Fines delivered by
the Financial
Conduct Authority
since April

425

m
Total fines levied
by the FCA for
the 2013-14
financial year

tigation. The scale of the forex and Libor

investigations have weighed on the
watchdogs ability to open new cases
and have led to far fewer penalties being
taken against individuals. Just nine individuals have been sanctioned by the
FCA in the financial year so far, for a
total of 2.2m. This compares with the
3.9m that 19 people had to pay last
year. In 2010-11 year, the regulator fined
83 different entities and individuals.
The fines collected from financialservices companies for misconduct go
to the Treasury, once the FCAs enforcement costs are deducted.
George Osborne, the UK chancellor,
said last week that the fines from the
forex investigation would be used as a
windfall payment for the National
Health Service. Libor fines, meanwhile,
which have topped more than 500m in
the UK, would be used to pay for military services and related charities.

Park and ride: residents are being urged to get out of cars and on to public transport to reduce traffic Dreamstime
tion of any city in Europe and North
America, according to data from Inrix,
a traffic data provider, as well as some
of the worst pollution levels in the continent.
The city, with a population of 1.3m,
is using connected car devices made
by Octo Telematics, a Rome-based
company, installed behind the dashboards of Unipol customers vehicles,
to transmit location data and ensure
that cars remain parked on the driveway.
Previously, the connected car has

ANDY SHARMAN LONDON

Italy is known for its peoples love of

food, football and fast cars. But the
city of Milan is asking residents to
forgo the latter to help ease its crippling traffic congestion.
The city has teamed up with Unipol, an
insurer, the local ATM transport network and a maker of automotive
black boxes to offer Milanese drivers
public transport vouchers if they leave
theircarsathome.
Milan suffers from the worst conges-

Mercks $8bn pursuit of Cubist reflects

focus on neglected antibiotics market
ANDREW WARD LONDON

A mooted $8bn takeover of Cubist, the

US biotech company, by Merck & Co
has highlighted renewed interest from
big pharma in the long-neglected market for antibiotics.

New Republic exodus

shakes US media
Staff departures from the venerable
political magazine acquired by
Facebook co-founder Chris Hughes
symbolise worries that the culture
and management style of Silicon Valley
may not serve the best interests
of journalism.
Analysis i PAGE 20

Massachusetts-based Cubist is at the

forefront of efforts to develop a new generation of anti-infective medicines to
tackle the spread of drug-resistant
superbugs.
Its shares surged as high as $93.50 in
after-hours trading on Friday, up 26 per
cent from their $74.36 close, after The
New York Times reported Merck was
closing in on a $100-a-share deal as
early as this week. Merck and Cubist
declined to comment.

Cubist is aiming to deliver at least four

new antibiotics by 2020 and has committed $400m in research and development this year alone.
Big drugmakers scaled back investment in antibiotics in recent decades to
focus on higher-margin businesses such
as cancer medicines, leading to a sharp
drop in the number of new antibiotics
reaching market.
But there have been signs of revival in
the past two years, with Roche, GlaxoSmithKline and Sanofi all pledging fresh
investment or forging research partnerships to develop new bug-fighting drugs.
The World Health Organisation
warned in April that antibiotic resistance threatens the achievements of
modern medicine. Without urgent

action, it said, the world was headed

for a post-antibiotic era, in which common infections and minor injuries
which have been treatable for decades
can once again kill. Antibiotic-resistant
infections kill about 50,000 a year in the
US and Europe and the number is rising,
WHO said.
In July, David Cameron, the prime
minister, appointed Jim ONeill, former
chief economist of Goldman Sachs, to
head a panel of experts looking at ways
to increase incentives for investment in
antibiotics.
For Merck, a takeover of Cubist would
mark its second large deal in six months
after its $3.85bn acquisition in June of
Idenix Pharmaceuticals, a hepatitis C
specialist.

Companies / Sectors / People

Companies

Co-operative Group..............................24

Krispy Kreme............................................24

Rothschild....................................................21

Westpac.........................................................19

Dougan, Brady..........................................19

ANZ..................................................................19

Coda Payments........................................18

Kuwait Investment Authority..........19

Sanofi..............................................................17

Zalora..............................................................18

Foer, Franklin............................................20

Abbott Laboratories ..............................6

Commonwealth Bank............................19

Merck & Co.................................................17

Sequoia Capital........................................18

Sectors

Gael de Boissard, ...................................19

Alibaba...........................................................18

Credit Suisse..........................................17,19

Micro Focus................................................24

Shell....................................................................1

Automobiles.................................................4

Gilvary, Brian.............................................20

Amazon........................................................20

Cubist..............................................................17

Morgan Stanley........................................21

Simon Property Group.........................19

Banks.........................................................17,19

Goodman, Peter......................................20

Andreessen Horowitz..........................20

Dalian Wanda.............................................19

National Australia Bank......................19

SoftBank.......................................................18

Asda.................................................................21

Debenhams................................................24

News Corp..................................................20

Songbird Estates ....................................21

Ashtead........................................................24

eBay................................................................20

Och-Ziff Capital Management.........19

Sports Direct.............................................24

Attachmate.................................................24

Eon.....................................................................3

Papa John...................................................24

SuperGroup................................................24

Axel Springer............................................20

ExxonMobil....................................................1

Ping An.........................................................19

Technology Crossover Ventures...20

BP....................................................................20

Facebook.....................................................20

Pinterest.......................................................18

Tesco..............................................................24

Baidu...............................................................18

First Look Media....................................20

Play.com........................................................18

Tokopedia....................................................18

Barclays.........................................................21

GlaxoSmithKline.......................................17

Qatar Investment Authority.............21

UBS..................................................................19

Electricity........................................................3

Klein, Ezra...................................................20

Gen Retailers..............................................21

Leishman, Paul..........................................18

Healthcare.....................................................3

Mikitani, Hiroshi.......................................18

Media.............................................................20

Morgan, Jim...............................................24

Mining...............................................................3

Omidyar, Pierre........................................20

Real Estate..................................................19

Snyder, Gabriel........................................20

Software........................................................18

Sutherland, Euan....................................24

Travel & Leisure........................................4

Taibbi, Matt................................................20

Brookfield.....................................................21

GlaxoSmithKline.......................................18

Rakuten.........................................................18

Uber.................................................................18

Buy.com.........................................................18

Google.....................................................12,20

Rio Tinto.........................................................1

Unipol.............................................................17

People

Tanuwijaya, William................................18

CGN.................................................................19

HSBC...............................................................21

Roche..............................................................17

Viber................................................................18

Ashley, Mike...............................................24

Thompson, Tony.....................................24

Canary Wharf.............................................21

House of Fraser......................................24

Rocket Internet.........................................18

Vox Media...................................................20

Barra, Hugo................................................18

Vidra, Guy...................................................20

China Investment Corp........................21

Ita.....................................................................6

Rolls-Royce..................................................18

Walmart.........................................................21

Bezos, Jeff..................................................20

Witty, Andrew............................................18

Citigroup.......................................................21

JP Morgan...................................................21

Rosneft.........................................................20

Westfield.......................................................19

Browne, Lord................................................1

van Beurden, Ben......................................1

The Financial Times Limited 2014

Credit Suisse
aims to shrink
unit serving
hedge funds

Week 50

been all about navigation, infotainment and insurance, said Jonathan

Hewett, chief marketing officer at
Octo Telematics. What were seeing
with this project is organisations from
public and private spheres can get
together and make life better for
Europes citizens.
Under the Park Your Car and Go
Public! project, Unipol customers
receive vouchers worth 1.50 one
public transport ticket for every
weekday that their vehicles are left at
home between 7.30am and 7.30pm.

Credit Suisse plans to squeeze its unit

serving hedge funds amid pressure from
investors to reduce the leverage of its
investment banking division.
The Swiss bank is trying to find ways
to bring down the capital usage of its balance sheet-intensive prime brokerage as
part of a plan announced in October to
cut leverage by about SFr70bn, ($71bn)
two people close to the situation said.
Although Credit Suisses prime brokerage unit has a strong market position, it is one of the lower returning
parts of the investment bank due to its
high use of balance sheets. The bank is
also considering raising the prices it
charges hedge funds for services.
The changes come as some Credit
Suisse investors grow concerned over its
lack of progress in cutting leverage and
reallocating capital from investment
banking to its private banking unit.
Brady Dougan, chief executive, said
last year he wanted to balance the
investment bank more evenly with the
private banking unit and aims to allocate roughly half the capital to each.
Yet at the end of the third quarter, 57
per cent of Credit Suisses SFr286bn of
risk-weighted assets were in the investment bank, with the rest in the private
bank and corporate centre.
One top 30 investor said: We dont
think it is the right mix 50/50 is still a
long way off and I would wish they
would cut back the investment bank
even more than that.
People close to the bank acknowledge
the slow progress but say its ability to
increase the capital-light private banking rapidly is limited, and warn that it is
hard to shrink the investment bank further without damaging profitability.
The cutbacks mark the third restructuring of the investment bank in just
over a year, following cuts to government bond and commodities trading.
However, Mr Dougan said in October he
hoped that the latest cuts could be
achieved without a significant impact
on revenues. Credit Suisse is also mulling a further push towards electronic
channels in its global macro unit,
which houses government bond and
forex trading.
Investors irked page 19

18

FINANCIAL TIMES

Monday 8 December 2014

COMPANIES
INSIDE BUSINESS

Software

Uber faces sex assault claim in India

Taxi service under fire
for allegedly not checking
drivers background
AMY KAZMIN NEW DELHI

Uber, the taxi hailing service, was on the

defensive in India after a 25-year-old
woman in New Delhi claimed she was
sexually assaulted by a driver hired
through the popular app.
Police yesterday said they had
arrested a 32-year-old suspect in connection with the attack, in which the
driver allegedly took the woman to a
secluded place and assaulted her,
threatening to kill her if she resisted
or went to the police.
However, police have criticised Uberfor not putting the driver through
proper background checks before he

was permitted to transport passengers.

The company, which did not get his
background check done, will be held liable for gross negligence, Madhur
Verma, a senior Delhi police officer, told
The Indian Express newspaper.
Uber boasts that its service is Delhis
best way to order a safe, reliable and
affordable ride within minutes.
The alleged assaultprovoked anger in
a city still scarred by the lethal gang rape
of a young physiotherapist on board a
private bus two years ago.
Uber insisted yesterday that safety
remained its highest priority. In
India, we work with licensed driverpartners to provide a safe transportation option, with layers of safeguards
such as driver and vehicle information,
and ETA (estimated time of arrival)
sharing, to ensure there is accountability and traceability of all trips that

occur on the Uber platform, the company said.

However, on the messaging service
Twitter debate raged over whether Uber
was doing enough to verify the drivers
who participated in its service in India.
Many customers of the service, which
has become popular in many Indian cities since it launched during the past
year, expressed shock.
A big part of the reason I take private
cabs is I assume they are being monitored and so I am safer, tweeted Rukmini Shrinivasan, a New Delhi-based
journalist for The Hindu newspaper.
The alleged sexual assault took place
on Friday evening, after the woman,
who works for a finance company, said
she hailed a taxi through Uber after dinner with friends.
According to local media reports, the
woman said she had fallen asleep in

Company
will be
held liable
for gross
negligence
Madhur
Verma, New
Delhi police

the cab, then awoke to find herself in a

secluded area, with the driver assaulting
her. When she resisted and tried to
make an emergency call, he overpowered her, and threatened to kill her if
she went to police or reported the incident to Uber.
After the alleged attack, the driver
dropped the woman at her home, but
she took a secret photo of the car licence
plate and went to the police to report the
assault.
The car was later found abandoned in
Mathura, about 160 kilometres away,
in the lawless state of Uttar Pradesh.
Ubers reputation is likely to be
dented by the incident in a market anxious about safe modes of transport for
women, especially at night. It is the
companys latest headache in India,
after a run-in with the Reserve Bank of
India over its payment system.

Software. Venture capital

Indonesia eyed as looming tech hotspot

Investors overlook the hurdles
as they seek a foothold in
nascent ecommerce market
BEN BLAND JAKARTA

When tech entrepreneur William Tanuwijaya was negotiating with venture

capitalists over the biggest investment
in an Indonesian start-up, they kept asking him to move his ecommerce company, Tokopedia, to business friendly
Singapore.
They were worried about the lack of
legal certainty in Indonesia, the complicated administrative procedures and
the tax implications for an IPO or other
exit strategy, he says. But I insisted on
staying in Indonesia because I want us to
step up our game and develop our own
Silicon Valley.
His persistence paid off when SoftBank and Sequoia Capital agreed in
October to invest $100m in his online
marketplace, which has been dubbed
the Alibaba of Indonesia. He plans to use
the funding to expand his staff from 150
to 1,000 over the next two years and
build a Google-style campus.
The tale underlines both the roadblocks facing Indonesias nascent tech
sector and the willingness of investors to
overlook them as they try to get a foothold in one of Asias most promising
ecommerce markets.
The proportion of internet users in
this nation of 250m people is predicted
to more than double over the next four
years to 68 per cent, according to market researchers Frost & Sullivan,
because of rising incomes and the

availability of ever cheaper Chinese

smartphones.
Bao Jianlei, Indonesia managing
director for Chinese search engine
Baidu, says that 80 per cent of Indonesians are using mobile phones that cost
less than Rp3m ($244) but that 40 per
cent will upgrade in the next year.
This shift will drive an online retail
revolution, with ecommerce revenues
in Indonesia surging from an estimated
$1bn last year to $10bn by 2016, according to Frost & Sullivan faster growth
than in any other country in southeast
Asia. Now, a growing number of venture

capitalists are setting up Indonesia-focused funds, following the lead of pioneers such as Germanys Rocket Internet, which has backed online retailers
such as Zalora and Lazada.
US internet companies Facebook,
Twitter and Uber are all opening offices
in Jakarta. And the local conglomerates
that dominate southeast Asias biggest
economy are following suit with the billionaire Bakrie, Hartono and Widjaja
families all setting up funds to invest in
start-ups.
But Indonesia still has many quirks
that force fast-moving tech companies

William
Tanuwijaya,
Tokopedia chief,
speaking in
Jakarta last
month: he wants
Indonesia to
develop its own
Silicon Valley
Adek Berry/Getty Images

to pause. Many Indonesian internet

users only connect through basic feature phones and do not have email
accounts, forcing Twitter and other
companies to develop verification by
phone number or SMS message rather
than email.
Paul Leishman, the co-founder and
chief operating officer of Jakarta-based
Coda Payments, says many people are
surprised to learn of the one piece of
technology without which his mobile
payments company could not survive: a
typewriter. It seems crazy but we need
it to fill in certain government forms,
he says.
Xiaomi, the fast-growing Chinese
smartphone maker, has had to adapt its
approach for the Indonesian market as
well, according to Hugo Barra, the vicepresident for global expansion.
Indonesian officials take longer to
approve its phones for distribution than
in any other market, says Mr Barra.
Indonesias ecommerce market is in
its early days compared to India and
China, he says. There is so much
potential, especially because there is a
lot of fresh, progressive thinking from
the new government.
But other tech executives fear that the
government will continue to stand in
their way, after Indonesia banned foreign companies from investing directly
in online retail in May. The government says its helping Indonesian tech
companies by limiting foreign competition but theyre making it harder for
them to get much-needed capital and
advice, says an executive at a leading
Valley company. The risk is that this
backfires and Indonesian start-ups flee
to Singapore.

ON MONDAY

Jonathan
Guthrie

Its time for Britains

national champions
to raise their game

he British do not have explicit national champions in the same way as the French and Germans. They would consider it vulgar.
Yet that has not stopped a clutch of companies including Rolls-Royce and GlaxoSmithKline from achieving national champion status. But the
engine maker and the pharmaceuticals group are in trouble. Their pre-eminence means they are receiving gimleteyed scrutiny. GSKs failure to sell a multibillion-pound
portfolio of legacy drugs for a high price this week will be
interpreted as a symptom of a deeper malaise.
National champions are sector leaders which embody
excellence and win exports. They are rewarded with prestige, protection and such subsidies as are permitted under
international trade agreements.
The state rescued Rolls-Royce from bankruptcy in 1971
and has contributed to research and development costs
ever since. GSK was among the beneficiaries when the government created fat tax breaks for R&D last decade.
But Rolls-Royce stock has tumbled 28 per cent since January and the drug companys shares are down 13 per cent
since peaking in February. A smaller drop for GSK may
reflect louder M&A gossip the state holds a golden
share in Rolls-Royce to block foreign takeovers.
What went wrong for these local heroes? Scandal and
weak profits are common enemies. The stress has been on
the first factor for GSK and the second for Rolls-Royce.
GSK was fined 300m by a Chinese court in September
for bribing doctors to prescribe its drugs. A foreign multinational was a soft target for an anti-corruption drive. But
there are no adequate excuses for distorting clinical priorities and perhaps damaging patients health.
The imbroglio clashed with GSKs image as a science
company with historic roots in cosy Victorian cures for the
common cold. There is a similar contrast between the lofty
heritage of Rolls-Royce, whose engines helped the Royal
Air Force defeat the Luftwaffe, and an investigation by the
Serious Fraud Office into alleged bribery in Asia.
It would be a mistake to assume a latter-day Sherlock
Holmes will be working on the case. In the UK, fraud investigations often appear to consist of no more than a file with
the suspect companys name
written on it. Rolls-Royces
What went wrong
bigger immediate problem is
that it has warned on profits for these local
four times in 18 months. This
heroes? Scandal
year, it has reined in estimates for its defence and and weak profits
marine units and cautioned
are common foes
that 2015 earnings could
undershoot 2014.
One element in the mix also affects GSK, which pulled
back guidance for 2015 in July in response to poor sales of
respiratory drugs: government spending. Western nations
are shelling out less on warplanes while seeking to curb
healthcare budgets stretched by ageing populations.
British brokers and analysts suggest two typical knee
jerk remedies when big companies have big problems. The
first is to kick out the chief executives. Managerial
Catch-22 applies. If they had an inkling of mounting problems, they should have forestalled them. If not, they were
out of touch.
Sir Andrew Witty, chief executive of GSK, has won support by broadening revenues outside blockbuster drug
development, in part through a well-received $20bn asset
swap with Novartis. But the incoming chairman the eminence Gris who hires and fires chief executives in the UK
is Sir Philip Hampton, who is pragmatically merciless.
John Rishton at Rolls-Royce has fewer supporters outside the business. Engineers grumble that an engineer
should run Rolls-Royce, even though Sir John Rose, Mr
Rishtons well-regarded predecessor, was an ex-banker.
Both boards will contemplate a change because a narrative of revival is most convincingly articulated by someone
who does not own the original problem.
The second knee-jerk demand is for a break-up. It is
unlikely investors would benefit as much as fee-hungry
corporate financiers. Both companies use cash flows from
stable divisions such as marine engines and healthcare to
bolster capital-intensive businesses such as civil jet
engines and pharmaceuticals, where returns are potentially higher.
US bankers who dream of a bid from Pfizer for GSK fall
into the trap of imagining that because the British are
polite, they are unaggressive. The hostility triggered
among politicians and media by the US groups 69bn tilt
at AstraZeneca earlier this year would be nothing to the
fury inspired by an offer for the countrys largest drugs
company.
Both groups will have to revive their flagging performance on their own. England expects them to do their duty.
jonathan.guthrie@ft.com

Media

Rakuten puts Viber at heart of global ambition

TIM BRADSHAW SAN FRANCISCO

Rakuten is looking to its messaging app

Viber to tie together customers from
across its global network of sites and
services, according to the Japanese
ecommerce groups founder, as he
defended his companys record of
acquisitions.
Hiroshi Mikitani told the Financial
Times that with almost 250m active
users, Viber has the potential to form
the backbone to Rakutens extensive
network of online malls, coupons,
ebooks, digital video and even banking
services in Japan and around the world.
Whether we can successfully pull all

these things together depends on

whether we can really integrate our
membership with Viber and whether
we can use our points programme effectively, he said. The acquisition of
Viber enables us to go to a very different
level in terms of the number of the
membership.
Viber is one of several purchases
made by Rakuten as part of a longstanding plan to generate more revenues
from outside its home market, where
sales are still growing at double-digit
rates despite the sluggish economy.
Hitting back at critics of his dealmaking, which include the $1bn purchase of
Ebates, the US coupon and cashback

site, Mr Mikitani said: If its very

straightforward and everyone understands your strategy then probably
youre not making the right decisions.
Rakuten acquired Viber for $900m in
February, just days before Facebook
paid what would eventually total $22bn
for WhatsApp Messenger.
The app, which allows voice, text and
video calls as well as the ability to follow
celebrities and share digital stickers
with friends, expands Rakutens existing membership network of more than
150m across its ecommerce sites.
But with more than 600m monthly
active users, WhatsApps footprint is
more than double that of Viber.

Monday 8 December 2014

19

FINANCIAL TIMES

COMPANIES

Credit Suisse piecemeal strategy irks investors

Increased frustration over Swiss bank missing key performance targets amid market concerns about leverage ratio
DANIEL SCHFER LONDON
JAMES SHOTTER ZURICH

Room for improvement

Share prices

In early 2013, Credit Suisses top management was convinced that it had
adapted to the much stricter rules that
have been ushered in since the financial
crisis.
We are the only bank operating
under Basel III rules for both capital and
liquidity, Gael de Boissard, co-head of
Credit Suisses investment bank, said at
the time. We are putting the finishing
touches to this implementation process
while other firms have only just started
to change their business model and
clean out legacy assets.
Yet almost two years and three investment bank restructurings later, some
investors are becoming impatient about
what they see as the Swiss lenders
piecemeal strategy and a history of
over-optimistic forecasts.
I have some sympathy with them
saying we dont need to rush, one top
30 investor says. What I dont have
sympathy for is that they keep missing
targets and finding excuses for it.
Rather than putting the finishing
touches to the investment bank, Brady
Dougan, Credit Suisses chief executive,
has had to make three more attempts to
scale back various parts of the division
Last autumn, the Swiss group
announced deep cuts to its rates trading
business; this summer it said would exit
commodities trading. And in October, it
said it would reduce its assets in the
investment bank by another SFr70bn
($72bn).
Yet despite these moves, Credit Suisse
has rarely come close to meeting most of
its key performance targets. Its return
on equity attributable to shareholders
languished at 3.7 per cent in the first
nine months of 2014, far below its target
of more than 15 per cent over a three- to
five-year period across market cycles.
Other objectives, such as a cost-toincome ratio of below 70 per cent and a
better total shareholder return than its
peer group, have also mostly been
missed.

Rebased
100
80
Credit Suisse

40
20
UBS

Credit Suisse
Leverage exposure (SFr bn)
Exposure add-ons
Balance sheet assets
1200
1000
800
600
400
200
0
Q1 2013
14 Q3
Risk-weighted assets (SFr bn)
295
290
285
280
275
270
2013
2014
Q4
2012
Net income (SFr bn)

The inquiry also recommends boosting

competition in the financial sector by
forcing Australias four pillar banks to
set aside extra capital on mortgage lending a move that would make it easier
for smaller banks and new entrants to
compete.
Although Australian authorised
deposit-taking institutions are generally
well capitalised, further strengthening
would assist in ensuring capital levels
are, and are seen to be, unquestionably
strong, said the review, which was published yesterday by Joe Hockey, Australias treasurer.
The Financial System Inquiry identified several vulnerabilities in the banking sector, including its reliance foreign
funding, having four big banks with
similar business models based on mort-

0
-5
-10
2007 08
Photo: Adrian Moser/Bloomberg

gage lending, and capital levels. Mr

Hockey said there was no pending
financial crisis threatening Australia,
but there was a need to prepare for challenges ahead, particularly in light of
international changes to bank capital
adequacy rules.
We have got to weigh up the implications for financial services providers,
he said, adding that Australias prudential regulator would ultimately make a
decision on capital levels.
Australias banks emerged unscathed
from the global financial crisis thanks
to an economy buoyed by resource
exports to Asia. But the review warned
that the same conditions were unlikely
to be in place during a future crisis.
The report dismisses claims by the
banks that they are among the safest in
the world, concluding that they are not
in the top quartile of internationally
active lenders in terms of capital held.
It estimated that Australias big banks
had a common equity tier one capital
ratio of between 10 and 11.6 per cent,
which is below the 12.2 per cent held by
the top quartile internationally.

The review did not set a figure for the

level of capital that banks should hold,
but recommended that they maintain
adequacy ratios in the top 25 per cent
of global institutions.
If implemented, the reviews findings
could force the big four Commonwealth Bank, National Australia Bank,
Westpac and ANZ to raise tens of billions of dollars in extra capital.
In a September note, UBS forecast
that the review could result in a
A$15bn-A$68bn capital shortfall, while
credit rating agency Fitch said last
month that could be A$53bn.
Banks have warned that making them
hold extra capital would force increases
in loan interest rates for consumers and
may damage an already slowing Australian economy.
David Murray, chairman of the
inquiry, said he did not believe that
implementing the recommendations
would lead to higher interest rates as a
result of increased banking competition. Banks had made exaggerated
claims in the run-up to the reports publication, he said.

Real estate

Dalian Wanda sets $3.9bn IPO target

JENNIFER HUGHES HONG KONG

Dalian Wanda, Chinas biggest commercial property group, will today seek
to raise up to $3.9bn through an initial
public offering in Hong Kong that
would see it become the worlds second-largest pure-play commercial
developer behind Simon Property
Group of the US.
While Wang Jianlin, the groups founder,
is better-known for his interest in buying a Hollywood film studio, his $1.2bn
purchase of a plot on Los Angeles Wilshire Boulevard and his $2.6bn takeover
two years ago of the AMC cinema chain,
Dalian Wanda Commercial Properties
remains the bedrock of his rise to
become Chinas fourth-richest man.
If the IPO raises the full $3.9bn that
the group is targeting, it will have a market capitalisation just shy of $25bn,
trailing Simon Propertys $56bn but
ahead of the $15bn of Australias Westfield. In China, the group is best known
for its Wanda Plaza developments,
present in all major cities and which

Q3

Australias banks urged to boost capital

Australias banks need to hold billions
of dollars in extra capital to ensure they
are unquestionably strong and can
survive future crises, the governments
most comprehensive review of the
financial system since 1997 has found.

2007 08 09 10 11 12 13 14

Banks

JAMIE SMYTH SYDNEY

60

include a mix of retail, office, hotel, residential and entertainment uses.

The geographical spread of Wandas
business is unusual among Chinese
developers, which have often found it
hard to extend their brands into new

The group founded by Wang Jianlin

will list in Hong Kong today

provinces when faced with the labyrinthine regulatory restrictions between

regional governments.
At the bottom of Wandas pricing
range whereby it would raise $3.2bn
it would still be Hong Kongs biggest
IPO this year, topping the $3.16bn raised
last week by CGN, Chinas top nuclear
power producer.
The deals are part of a late flurry that
could see the city vault from fourth to
second in terms of capital-raising for
2014 behind New York in spite of the
fact that Chinese groups listing in Hong
Kong have underperformed those that
have chosen New York or Shanghai.
Dalian Wandas price range is below
last weeks expectations that it could
raise up to $4.5bn from the deal. While
even that represented a drop from earlier talk of up to $6bn, bankers close to
the deal have suggested that a
$3bn-$4bn range was most likely.
HSBC and CICC, the Chinese investment bank, are sponsors of the listing.
UBS, Goldman Sachs and CICC are leading the bookrunning process.

09

10

11

12

13

FT graphic. Sources: Thomson Reuters Datastream;

company

It is the RoE number that frustrates,

one top 40 investor says. I dont think
anyone has got 15 per cent in their numbers. From the outside, the target really
looks too high.
The banks returns this year have
been depressed by factors such as the
$2.6bn fine it received for helping
American clients evade taxes. But people close to the non-executive board
acknowledge that management has its
work cut out. They also say that the 15
per cent target was designed to be
stretched and may need to be reviewed
once there is greater clarity about the
regulatory landscape which, six years
after the onset of the financial crisis, has
not yet settled.
Investors, analysts and even rival
bankers stress that Mr Dougan who,
having taken the helm in 2007, is one of
the longest-serving chief executives in
global banking has steered Credit
Suisse accident-free through the financial crisis. Through that long-term lens,
the banks share price still outperforms
rival UBS, which had to be bailed out
during the crisis.
It is in the period since late 2011
when UBS made its first step towards
what would a year later turn into a radical downsizing of the investment bank
that Credit Suisse has underperformed.
Since November 2011, Credit Suisses
shares have risen by 14.55 per cent,
while UBSs have risen by 65.10 per cent.
That has left Credit Suisses shares trading at 0.97 times their book value, while
UBSs trade at a multiple of 1.38.
Credit Suisse managements stewardship through the crisis has been one
of the better ones but they probably
misjudged what happened on the regulatory front, Philippe Bodereau, global
head of financial research at Pimco says.
The welter of regulation since the
financial crisis has made some oncelucrative areas of investment banking,
particularly on the trading side, uneconomic. But whereas UBS responded to
these pressures by exiting large parts of
its capital-intensive fixed income busi-

ness, Credit Suisse has persisted with a

far bigger investment bank.
This is in part because its investment
bank has traditionally been much
stronger than UBSs, while its private
bank is far smaller. In my opinion, it
certainly does not make any sense for
Credit Suisse to go down the same strategic route as UBS, says Andreas Venditti, an analyst at Vontobel.
Analysts also say there is some justification to Credit Suisses reluctance to
make far-reaching decisions before global regulations are more settled.
Credit Suisse is still a work in
progress, but that is partly because the
regulatory framework is a work in
progress, says Kinner Lakhani, an analyst at Citi, pointing out that the outcome of a review of the risk-weightings
in banks trading books and a long-

It is the RoE number that

frustrates. I dont think
anyone has got 15 per cent
in their numbers
awaited review of Switzerlands leverage rules remains uncertain.
Nonetheless, Credit Suisses lack of
progress in cutting leverage worries
some investors. Over the past 12
months, the banks leverage exposure
under Swiss rules has drifted up from
SFr1.12tn to SFr1.19tn. The lender aims
to be at SFr1.05tn by the end of 2015.
The market is very concerned about
the leverage ratio, and it will not be forgiving at all if they miss out on their target. Management life is going to be very
difficult if they dont hit it by the end of
next year, says a top 30 investor.
If Credit Suisse can improve its leverage ratio, and markets turn the bank
is seen by analysts as one of those bestplaced to profit from rising rates and a
stronger US recovery investor sentiment towards it is likely to improve.
If it fails, however, investors could
become more restless.

20

FINANCIAL TIMES

Monday 8 December 2014

COMPANIES
Media

Old guard walk

out over digital
shake-up at the
New Republic
Less than a month since
its 100th birthday the
magazine is in turmoil
SHANNON BOND NEW YORK

A glittering roster of Washingtons elite

turned out in force in November to toast
the 100th anniversary of The New
Republic, the venerable political magazine acquired in 2012 by Facebook cofounder Chris Hughes. Bill Clinton, the
former president, Supreme Court justice Ruth Bader Ginsburg, and House
minority leader Nancy Pelosi were all
in attendance.
Less than a month later, the magazine
is in turmoil following an exodus by
most of its senior writers and editors in
the space of 24 hours.
The very public implosion is emblematic of worries across a media industry
that thinks the culture and management style of Silicon Valley are not serving the best interests of journalism.
The walkout at The New Republic
came on the back of conflict at First
Look Media, the start-up news organisation backed by Pierre Omidyar. The
eBay founder committed to spending
$250m to create a new mass media
organisation, but in October Matt
Taibbi, its best-known editorial hire,
left, and one of its digital properties was
shuttered before it could launch.
New Republic staffers departed in
protest after Mr Hughes and Guy Vidra,
the recently appointed chief executive,
replaced editor Franklin Foer, and
announced plans to publish less frequently and relocate its head office to
New York. Mr Vidra, a former Yahoo
executive, spoke of turning the company into a vertically integrated digital
media company under the leadership
of Gabriel Snyder, formerly of Bloomberg Media and the Atlantic Wire. The
shake-up reverberated across the community of political reporters in Washington and New York, for whom the
magazine has an outsized reputation.
In the pre-internet age, The New
Republic was a font of viral ideas in the
east coast political culture, said Ken
Doctor, media analyst at Outsell.
Between Boston and DC, it was one of
those influential journals, as much in
the European style as the American
style, that could be small but had veteran voices that people knew. They
helped shape the debate and the political agenda.
When Mr Hughes bought a majority
stake and became publisher in 2012, the
move was greeted with optimism. Many
hoped that the 28-year-old, who had
made a name for himself at Facebook
and as a member of the digital team

behind Barack Obamas 2008 presidential campaign, would use that magic to
guide the publication into the online
age. But last week it quickly became
apparent that many of the magazines
journalists had lost confidence in Mr
Hughes and Mr Vidra.
At First Look, Mr Omidyars micromanaging and a fundamental culture
clash were blamed for the conflicts
that led Mr Taibbi to return to Rolling
Stone magazine, according to reporters
at The Intercept, the start-ups national
security-focused site. They described
a collision between the First Look executives, who by and large come from
a highly structured Silicon Valley corporate environment, and the fiercely
independent journalists who view cor-

The influential journal was

in the pre-internet age . . .
a font of viral ideas in the
east coast political culture
porate cultures and management-speak
with disdain.
The anxiety over The New Republic
and First Look is a counterpoint to the
optimism surrounding properties such
as BuzzFeed and Vice Media, which
have achieved eye-popping valuations
backed by investments from Silicon Valley venture capital funds including
Andreessen Horowitz and Technology
Crossover Ventures. Last week Vox
Media, home of the Vox.com news site
helmed by Ezra Klein, closed its latest
funding round at a valuation of $380m.
Mr Hughes and Mr Omidyar also
stand in contrast to Jeff Bezos, the billionaire chief executive of Amazon,
whose stewardship of the Washington
Post has been widely praised since he
bought the paper last year for $250m.
From the outside, he seems very
respectful of what classically trained
journalists do. He has given them more
money to do it and engaged in technological tools that have been successful,
said Peter Goodman, editor-in-chief of
International Business Times. But does
that mean anybody who is successful at
tech can come in and run a viable journalism organisation? Hardly.

Jeff Bezos has been widely praised

as owner of the Washington Post

Oil & gas

BP steps up job cut plans

as oil price keeps falling
HENRY SANDERSON LONDON

BP is accelerating plans to reduce its

headcount, in a sign of how global oil
companies are looking to control costs
in the face of a lower oil price.
The company is looking at its nonoperations staff, including back-office
employees, that have been kept on as
the company has shed production assets
in its portfolio.
Oil is concentrating minds on making the organisation more efficient and
the right size for the smaller portfolio we
have now, said the company.
Preparations to trim staff numbers
show the effect that an almost 40 per
cent fall in the oil price since the summer is having on industry leaders.
Oil last week closed at its lowest level
in five years after members of Opec
decided to maintain its 30m-barrel-a-

Analysts say that energy companies

earnings could be cut by 33 per cent

day production ceiling, because of worries of oversupply. Analysts expect cuts

in exploration spending and possible
project deferrals. BP has been divesting
parts of its portfolio and is now a third
smaller than it was four years ago, the
company said. It plans $10bn of asset
disposals by 2016 as part of its restructuring plan.
The group also faces risks from its
19.75 per cent stake in Russian oil company Rosneft, which has been hit by the
collapse in the rouble over the past
month. ICE January Brent closed at
$69.07 Friday, below $70 for the first
time since 2010.
Analysts at UBS have forecast that oil
will trade at about $70 a barrel for 2015
and estimate that this would reduce
earnings by about 33 per cent for
Europes integrated oil and gas companies. Capital expenditure is also likely to
take a 10 per cent hit, they added.
Still, BP said that a lower oil price
helped to reduce inflation, which will
make goods in the companys supply
chain cheaper. Brian Gilvary, BPs chief
financial officer, told the Sunday Times
that: We have got flexibility in our programme to trim into next year if thats
what we need in a new world of oil at $70
or $60, or whatever the number is.
BP has an investor day on Wednesday
to give an update on its upstream portfolio. Shares in BP have fallen 13 per cent
this year, and closed at 424.5 pence on
Friday.

News channels
Concerns over the
power of Silicon Valley
The media uproar over problems
at The New Republic and First Look
Media come at a time when many
journalists are chafing at Silicon
Valleys approach to news.
Facebooks power to influence
what stories people read has
elicited comparisons to Amazons
position in book publishing.
Some 30 per cent of US adults
get their news on Facebook, a
recent Pew study has found, and
the platform has become a primary
driver of traffic to news websites.
No other single branded
platform in the history of
journalism has had the
concentration of power and
attention that Facebook enjoys,
said Emily Bell, director of Columbia
universitys Tow Center for Digital
Journalism, in a recent lecture.
In Europe the bogeyman is
Google. Publishers including
Axel Springer, the continents
biggest newspaper publisher by
circulation, and News Corp, argue
that the search giants indexing of
their content threatens their
business.

Bill Clinton, former US president, addresses the New Republic Centennial Gala last month Teresa Kroeger/Getty

Monday 8 December 2014

21

FINANCIAL TIMES

COMPANIES

Decade-old tensions flare up in the war for the Wharf

Stand-off threatens board
stability as sweetened bid
leaves Songbird unmoved

company of its heavy debt burden. The

Qataris interest in the district is evident. It recently bid 1.1bn for the HSBC
Tower one of the few skyscrapers in
the area not owned by Canary Wharf
Group.
But the Qataris fellow Songbird
shareholders have hitherto been unwilling to relinquish their hold on Canary
Wharf without a fight. Although Songbirds shares are illiquid and it has not

KATE ALLEN
LONDON

When the Qatar Investment Authority

first called Songbird Estates last month
to say it wanted Canary Wharf, it was
given short shrift. Not even last weeks
sweetened bid has changed Songbirds
tune yet.
The war for Britains second-largest
financial district, 70 per cent owned by
Songbird, began with a phone call.
The telephoned request for a meeting
in early November was not unusual. The
QIA, one of the worlds most powerful
sovereign wealth funds, is Songbirds
biggest shareholder with 28 per cent
and has two representatives on the
board.
But once the groups directors had
assembled, the QIA informed them that
it was pairing up with Canary Wharfs
other big shareholder Brookfield, Canadian property investors.
With Brookfields 22 per cent, the QIA
hoped to gain full control of Canary
Wharf by offering 295p per share, valu-

Why would you want to

stay in bed with someone
who has said they
want to leave you?

The Qataris fellow Songbird shareholders have been unwilling to relinquish their hold on Canary Wharf without a fight Luke MacGregor/Reuters
ing the company at 2.2bn. Analysts
panned the offer, arguing that Songbird
was worth as much as 400p per share.
Three weeks after the initial 2.2bn
bid, the board published an independent valuation of the companys assets at
2.8bn, or 381p per share a 19 per cent
increase on its valuation just five
months earlier.
The tensions between the two sides
were apparent from the start. The bid
was leaked to the media, forcing the
board to announce to the markets it had
been approached. The QIA and Brookfield felt that the media leak had rushed
them into going public before they had a
chance to refine pricing. Both sides deny
leaking.
That only added to strains lingering
from the battle for Canary Wharf a decade earlier.
In 2004 New York magnate Simon
Glick and Morgan Stanley formed Songbird to acquire Canary Wharf, at the
time a listed company. Brookfield
meanwhile had teamed up with Canary
Wharfs developer Paul Reichmann and
also built a stake in Canary Wharf.
When Songbird won control, Brookfield
held on to its stake in the east London
financial centre, waiting for the opportunity to wrest control.
During the financial crisis in 2009, the
QIA and the China Investment Corp
arrived on the shareholder register to
inject fresh equity and help relieve the

350p

28%

Final bid last

week by the QIA,
valuing the
group at 2.6bn

Qatar Investment
Authoritys
holding in
Songbird

paid a dividend for five years, it is hard

to find alternative investments of a similar calibre.
The QIA has upped the ante, questioning the role of some of Songbirds
advisers. The QIA hired Citigroup and
Barclays, while Brookfield brought
HSBC on board.
Morgan Stanley, a leading Songbird
shareholder, was named as an independent adviser to the board, and Songbird bolstered its advisory team with
JPMorgan, which is not a shareholder.
Songbird has also appointed Alex
Midgen, a Rothschild banker and a
Songbird director since 2004 and representative for Mr Glick, as an independent adviser on the bid. Some directors
argued that Mr Midgen has plenty of
experience in bitter takeover battles,
and has a deep knowledge of the company.
But a week or so ago the Authority
complained to chairman David Pritchard that there were substantial conflicts
of interest.
Then last week, the QIA and Brookfield week pitched a 350p per share final
bid valuing the company at 2.6bn 18
per cent more than their original offer.
The Qataris also cemented their relationship with the Canadians by taking a
9 per cent stake in Brookfield.
Songbirds board on Friday last week
complained that the increased offer still
did not reflect the companys true value.
But unlike the first offer, they did not
recommend that shareholders reject it,
which some observers see as a softening
of the boards stance.
The board says it will produce a recommendation to shareholders once it
has received the full offer document,
sometime in the coming weeks.
Hedge fund Third Avenue Management, which holds 3.5 per cent of Songbirds shares 16 per cent of its free
float has already agreed to sell out.
But the QIA and Brookfield need
either Mr Glick, Morgan Stanley or CIC
to accept their offer in order to gain control. There is no sign of that so far.
If none do, the stand-off threatens to
destabilise the board and lead to future
flare-ups. As one close observer says:
Why would you want to stay in bed
with someone who has said they want to
leave you?

General retailers

Black Friday kicks off wave

of discounting for UK stores
ANDREA FELSTED LONDON

Discounting has been stepped up on

the high street, in the wake of the busiest Black Friday in the UKs retailing
history and in the lead-up to Christmas, as the USs traditional postThanksgiving shopping spree gains in
popularity elsewhere.
According to Deloitte, both the number
and depth of discounts in British stores
are greater than last year. The professional services firm said it was the
fourth year in a row that the level of
markdowns had increased on the yearearlier period.
Discounts on the high street ranged
from 8 to 78 per cent, with a greater
proliferation of deals and steeper
markdowns likely in the approach to
Christmas.
I am expecting discounts to stabilise
a little bit in the next couple of weeks,
said Jason Gordon, consumer business
partner at Deloitte. But then as we start
to get into mid-December, [there is
likely to be] a spike again, with some
potentially quite heavy discounting in
the last few days.
The findings echo those of PwC, which
said two-thirds of high street shops were
holding sales or offering promotions last
week. This was up 4 per cent on the
week earlier, but on a par with last
year. The professional services firm
found, in a survey of 100 stores, that the
average discount was 38 per cent, similar to last year.
Mr Gordon said the increase in markdowns year on year had been driven by
more British retailers adopting Black
Friday, traditionally the day Americans
hit the shops after Thanksgiving.
I think that many retailers have

decided to try to make that a real thing,

and have pushed quite hard on discounting . . . as a way to kick-start the
Christmas trading season, he said.
However, some analysts have questioned whether the practice is only pulling sales forward from Christmas.
Retailers enjoyed a sales boost on the
last Friday in November, but the day
was also marked by chaos at a number
of stores across the country. Some retailers were overwhelmed by demand, with
scuffles breaking at out at some stores as
shoppers grappled with each other to
secure the best deal.
The last Friday in
November was
marked by chaos
across the UK with
scuffles breaking
out in some stores

Meanwhile, the unseasonably warm

autumn has left many retailers with
stocks of coats and knitwear. Even
if the weather does go cold from now,
it will be very difficult to adequately
recover in the time we have left
before the full sale event, said Mr
Gordon.
However, he questioned whether
some discounts being advertised were
genuine reductions, because increasingly stores were buying in products
especially to sell at a discount.
Asda said it had worked with its parent company Walmart to procure stock
for the sales day.
We are seeing an increasing amount
of stock bought to be sold on sale, and so
in my mind that is not really a true discount, because it was never anticipated
to be sold at full price, said Mr Gordon.

22

FINANCIAL TIMES

Monday 8 December 2014

MARKET DATA
WORLD MARKETS AT A GLANCE

FT.COM/MARKETSDATA

Change during previous days trading (%)

S&P 500

Nasdaq Composite

0.17%

Dow Jones Ind

0.24%

FTSE 100

0.33%

FTSE Eurofirst 300

0.95%

Nikkei

1.77%

Hang Seng

0.19%

FTSE All World $

0.71%

0.06%

$ per

$ per

-1.125%

-0.701%

Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS
EUROPE
Index

Nov 06 - Dec 05
S&P 500

All World

New York

Index

Nov 06 - Dec 05
S&P/TSX COMP

All World

Toronto

All World

London

Month 3.14%

Year 15.76%

Day 0.03%

New York

IPC

Nasdaq Composite

Index

Nov 06 - Dec 05
Xetra Dax

All World

Frankfurt

14,473.70
Year 9.65%

Month -0.51%

9,377.41

6,551.15
Day 0.95%

Mexico City

Month 3.12%

Year 3.77%

FTSE Eurofirst 300

Month 8.28%

Year 11.03%

Ibex 35

Year 18.39%

Dow Jones Industrial

Day 0.97%

New York

Month -4.09%

Year 3.15%

Bovespa

Country

Month 3.31%
Index

Year 13.02%

Day 1.77%

So Paulo

Month 4.14%

Year 11.38%

CAC 40

Paris

Dec 05

Dec 05

Dec 04

Country

Month 7.00%
Index

Year 6.53%
Dec 04

9558.78
5345.40
5368.80
3438.10
2263.94
3268.36
4811.42
51426.87
847.09
14469.95
675.36
19238.75
8127.95
9847.88
3037.19
283.30
2899.46
1548.83
1013.34
1515.62
1773.12

Index

Day 2.21%

20552.39
25416.36
19424.38
4366.44
17887.21
1213.39
1440.60
2144.76
5169.88
6775.44
420.09
458.36
1555.84
1745.69
42816.15
9955.07
423.68
646.59
5522.68
34583.29
612.90
32090.93

9580.55
5313.60
5335.30
3373.60
2286.30
3335.69
4863.79
51992.89
846.16
14473.70
683.73
19357.98
8207.92
9743.68
3077.51
279.47
2937.65
1520.17
1004.70
1495.97
1776.13

Country

Year 2.37%

Dec 05

Merval
All Ordinaries
S&P/ASX 200
S&P/ASX 200 Res
ATX
BEL 20
BEL Mid
Bovespa
S&P/TSX 60
S&P/TSX Comp
S&P/TSX Met & Min
IGPA Gen
FTSE A200
FTSE B35
Shanghai A
Shanghai B
Shanghai Comp
Shenzhen A
Shenzhen B
COLCAP
CROBEX

Dec 04

Month -3.18%

Cyprus
Czech Republic
Denmark
Egypt
Estonia
Finland
France

close
price
115.00
17.68
104.59
76.36
41.12
528.08
62.70
223.71
48.42
56.08

Day's
change
-0.49
0.47
2.77
1.12
-0.34
-14.50
1.32
-4.57
-0.42
0.90

BIGGEST MOVERS

Close
price

Day's
change

Day's
chng%

51.79
147.69
23.86
29.97
41.32

3.37
7.85
0.77
0.96
1.29

6.96
5.61
3.33
3.31
3.22

Ups
Supergroup
Balfour Beatty
Ao World
Howden Joinery
Booker

12.21
92.15
49.78
80.51
7.43

-0.74
-4.52
-1.81
-2.71
-0.24

-5.71
-4.68
-3.51
-3.26
-3.13

Downs
Bank Of Georgia Holdings
Enquest
Acacia Mining
Tullow Oil
Randgold Resources Ld

Downs
Nabors Industries
Marathon Petroleum
Valero Energy
Eastman Chemical
Denbury Resources

Based on the constituents of the S&P500 and the Nasdaq 100 index

Index

Nov 06 - Dec 05
Kospi

All World

Seoul
1,986.62

1,936.48

Day 0.19%

Month 6.27%

Year 16.31%

Hang Seng

Day 0.00%

Hong Kong

Month 2.66%

Year -0.01%

FTSE Straits Times

Singapore

24,002.64
3,324.39

Year 14.26%

Day 0.71%

Milan

Month 0.66%

3,290.96
Day 0.59%

Year 1.15%

Shanghai Composite

Shanghai

20,087.23

Month 1.56%

Year 4.28%

BSE Sensex

Mumbai

2,937.65

28,458.10

Day 3.41%
Country

Month 3.39%
Index

Philippines
Poland
Portugal

Manila Comp
Wig
PSI 20
PSI General
BET Index
Micex Index
RTX
TADAWUL All Share Index
FTSE Straits Times
SAX
SBI TOP
FTSE/JSE All Share
FTSE/JSE Res 20
FTSE/JSE Top 40
Kospi
Kospi 200
IBEX 35
CSE All Share
OMX Stockholm 30
OMX Stockholm AS
SMI Index
Weighted Pr

Romania
Russia
Saudi-Arabia
Singapore
Slovakia
Slovenia
South Africa
South Korea
Spain
Sri Lanka
Sweden
Switzerland
Taiwan

Year 11.64%
Dec 05

Dec 04

7230.56
53652.58
5261.33
2326.16
7023.61
1529.20
908.75
8957.63
3324.39
220.11
794.19
49506.59
42951.88
43876.25
1986.62
254.24
10900.70
7238.92
1474.70
474.32
9212.85
9206.57

7299.85
53346.86
5165.07
2282.29
7000.87
1582.08
918.65
8801.68
3304.82
220.65
805.34
49392.59
43380.15
43767.55
1986.61
254.06
10619.90
7254.80
1447.82
466.54
9118.17
9225.11

2,425.86
Day 1.32%
Country
Thailand
Turkey
UAE
UK

USA

Venezuela
Vietnam

Month 20.86%
Index
Bangkok SET
BIST 100
Abu Dhabi General Index
FT 30
FTSE 100
FTSE 4Good UK
FTSE All Share
FTSE techMARK 100
DJ Composite
DJ Industrial
DJ Transport
DJ Utilities
Nasdaq 100
Nasdaq Cmp
NYSE Comp
Russell 2000
S&P 500
Wilshire 5000
IBC
VNI

27,915.88
Day -0.37%

Year 30.46%

Dec 05

Dec 04

1597.76
86234.10
4702.14
2809.40
6742.84
5964.29
3607.25
3473.39
6467.36
17958.79
9152.00
596.72
4311.57
4780.76
10970.29
1182.43
2075.37
21775.24
2972.68
578.38

1594.58
85555.12
4666.01
2775.40
6679.37
5898.86
3573.47
3440.13
6457.75
17900.10
9119.22
602.04
4311.93
4769.44
10952.30
1173.01
2071.92
21733.20
2955.08
574.88

Country

Month 2.15%
Index
DJ Global Titans ($)
Euro Stoxx 50 (Eur)
Euronext 100 ID
FTSE 4Good Global ($)
FTSE All World
FTSE E300
FTSE Eurotop 100
FTSE Global 100 ($)
FTSE Gold Min ($)
FTSE Latibex Top (Eur)
FTSE Multinationals ($)
FTSE World ($)
FTSEurofirst 100 (Eur)
FTSEurofirst 80 (Eur)
MSCI ACWI Fr ($)
MSCI All World ($)
MSCI Europe (Eur)
MSCI Pacific ($)
S&P Euro (Eur)
S&P Europe 350 (Eur)
S&P Global 1200 ($)
Stoxx 50 (Eur)

Cross-Border

Year 37.42%
Dec 05

Dec 04

244.23
3277.38
860.19
5728.11
279.83
1405.17
2842.22
1357.49
1153.73
3558.40
1560.44
494.47
4101.54
4339.05
424.39
1736.63
1421.65
2337.64
1416.19
1438.26
1930.94
3095.75

244.27
3191.25
842.73
5717.00
279.65
1380.77
2791.72
1356.20
1171.53
3554.20
1562.03
494.15
4020.97
4232.83
425.03
1739.73
1398.95
2358.95
1383.09
1413.24
1927.12
3043.65

UK MARKET WINNERS AND LOSERS

LONDON
ACTIVE STOCKS

stock
traded m's
Apple
42.2
Bank Of America
23.1
Gilead Sciences
18.7
Facebook Class A
17.2
Kinder Morgan
15.4
Google Class A
13.1
Jpmorgan Chase & Co.
12.6
Tesla Motors
12.4
Microsoft
12.3
Citigroup
12.3

Ups
Tenet Healthcare New
Northrop Grumman
E*trade Fin
Schwab Charles (the)
Suntrust Banks

Month 7.35%

FTSE MIB

STOCK MARKET: BIGGEST MOVERS

AMERICA
ACTIVE STOCKS

-1.24%

19,285.76

4,227.68

FTSE Italia All-Share

21199.43
CSE M&P Gen
83.57
83.65
Italy
FTSE Italia Mid Cap
25793.12
PX
1006.25
1001.39
OMXC Copenahgen 20
773.54
762.68
FTSE MIB
20087.23
EGX 30
9458.57
9304.98
Japan
2nd Section
4379.47
OMX Tallinn
781.30
782.06
Nikkei 225
17920.45
Austria
OMX Helsinki General
8003.64
7890.85
S&P Topix 150
1218.41
Belgium
CAC 40
4419.48
4323.89
Topix
1445.67
Jordan
Amman SE
2145.85
SBF 120
3461.80
3393.17
Brazil
Germany
M-DAX
17183.95
16968.99
Kenya
NSE 20
5184.92
Canada
Kuwait
KSX Market Index
6776.09
TecDAX
1379.47
1356.81
XETRA Dax
10087.12
9851.35
Latvia
OMX Riga
419.85
Chile
Greece
Athens Gen
1032.98
991.87
Lithuania
OMX Vilnius
456.69
Luxembourg
LuxX
1551.76
China
FTSE/ASE 20
335.01
321.65
Hong Kong
Hang Seng
24002.64
23832.56
Malaysia
FTSE Bursa KLCI
1749.37
HS China Enterprise
11600.48
11481.03
Mexico
IPC
43230.34
HSCC Red Chip
4472.11
4484.13
Morocco
MASI
9910.47
Hungary
Bux
17751.87
17399.47
Netherlands
AEX
431.06
India
BSE Sensex
28458.10
28562.82
AEX All Share
656.18
S&P CNX 500
6937.55
6960.75
New Zealand
NZX 50
5521.91
Indonesia
Jakarta Comp
5187.99
5177.16
Nigeria
SE All Share
34705.48
Colombia
Ireland
ISEQ Overall
5325.15
5220.86
Norway
Oslo All Share
610.96
Croatia
Israel
Tel Aviv 100
13.19
13.15
Pakistan
KSE 100
32148.78
(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.
Argentina
Australia

Day 2.64%

4,419.48

Day 1.10%

-1.63%

23,649.31

53,698.42
17,484.53
Day 0.33%

All World

Tokyo

10,261.80

1,351.53

17,958.79
51,992.89

Gold $

17,920.45

Madrid

45,071.98
Month 3.40%

Index

Nov 06 - Dec 05
Nikkei 225

10,900.70

1,405.17
43,230.34

1.412%

16,937.32

Day 2.39%

Europe

4,780.76
4,620.72
Day 0.24%

Oil Brent $ Sep

-0.379%

10,087.12

6,742.84
14,563.38

per

ASIA
Index

Nov 06 - Dec 05
FTSE 100

2,075.37

2,023.57
Day 0.17%

per $

EURO MARKETS
ACTIVE STOCKS

stock
traded m's
Vodafone
198.1
Hsbc Holdings
187.6
Bhp Billiton
143.8
Bp
134.4
Rio Tinto
132.3
Royal Dutch Shell
123.6
Barclays
99.2
Glaxosmithkline
96.4
British American Tobacco
89.2
Lloyds Banking
88.0

close
price
230.60
643.10
1474.00
424.50
2898.00
2149.00
249.45
1470.50
3744.50
80.89

Day's
change
6.95
15.10
-26.00
-2.40
-35.50
-1.00
6.80
9.50
14.50
1.32

BIGGEST MOVERS

Close
price

Day's
change

Day's
chng%

922.00
195.60
260.50
408.80
149.00

53.50
10.90
12.40
18.10
6.30

6.16
5.90
5.00
4.63
4.41

Ups
Intesa Sanpaolo
Piraeus Bank (cr)
Vi
Vestas Wind Systems A/s
Alpha Bank (cr)

2065.00
43.86
236.40
396.00
4189.00

-161.00
-1.89
-8.70
-12.90
-123.00

-7.23
-4.13
-3.55
-3.15
-2.85

Downs
Saipem
Seadrill
Bureau Veritas
Grifols
Statoil

Intesa Sanpaolo
Unicredit
Bbva
Santander
Total
Telefonica
Eni
Sanofi
Daimler Ag Na O.n.
Iberdrola

stock
traded m's
653.4
573.5
502.7
469.3
375.6
363.0
340.5
333.5
320.5
316.9

close
price
2.52
5.91
8.66
7.38
45.18
13.37
15.50
76.14
67.57
5.90

Day's
change
0.17
0.27
0.29
0.24
0.68
0.47
0.19
0.64
0.00
0.07

Close
price

Day's
change

Day's
chng%

2.52
1.31
45.33
32.06
0.56

0.17
0.07
2.21
1.55
0.03

9.31
9.67
18.55
32.60
14.68

-0.62
-0.58
-0.35
-0.58
-0.20

BIGGEST MOVERS

Based on the constituents of the FTSE 350 index

TOKYO
ACTIVE STOCKS

stock
close
traded m's
price
1004.9 7742.00
532.7 7785.00
363.2
696.90
362.6 4984.00
252.0
205.80
227.9 1806.00
224.9 43240.00
220.9 4531.50
220.7 3632.00
220.4 21120.00

Toyota Motor
Softbank .
Mitsubishi Ufj Fin,.
Eisai Co.,
Mizuho Fin,.
Sumco
Fast Retailing Co.,
Fuji Heavy Industries
Japan Tobacco .
Fanuc

Close
price

Day's
change

Day's
chng%

7.05
5.65
5.13
5.07
4.82

Ups
Sumco
Eisai Co.,
Isuzu Motors
Minebea Co.,
Hino Motors,

1806.00
4984.00
1595.00
1575.00
1668.00

210.00
288.50
70.00
63.00
55.00

13.16
6.14
4.59
4.17
3.41

-6.24
-5.61
-1.83
-1.73
-1.38

Downs
Dainippon Screen Mfg.co.,
J.front Retailing Co.,
Jgc
Takashimaya ,
Obayashi

742.00
1483.00
2587.50
964.00
713.00

-36.00
-55.00
-76.50
-23.00
-15.00

-4.63
-3.58
-2.87
-2.33
-2.06

Based on the constituents of the FTSEurofirst 300 Eurozone index

BIGGEST MOVERS

Day's
change
12.00
-18.00
7.90
288.50
0.00
210.00
-685.00
4.00
-28.00
255.00

Based on the constituents of the Nikkei 225 index

FTSE 100
Winners
Sage
Rolls-royce Holdings
Easyjet
Int Consolidated Airlines S.a.
Sports Direct Int
Persimmon
Kingfisher
Dixons Carphone
Crh
Ashtead
Experian
Aberdeen Asset Management

Dec 05
price(p)

%Chg
week

%Chg
ytd

447.90
900.00
1761.00
486.70
699.50
1613.00
328.20
444.10
1579.00
1101.00
1055.00
467.70

10.0
6.8
6.5
6.4
5.9
5.2
5.2
4.9
4.5
4.5
4.1
4.0

10.9
-29.4
14.6
21.3
-2.2
30.2
-14.7
3.7
44.9
-5.3
-6.5

FTSE 250
Winners
Northgate
Betfair
Entertainment One
Ssp
Centamin
Smith (ds)
Fisher (james) & Sons
Ladbrokes
Spire Healthcare
Just Retirement
Balfour Beatty
Provident Fin

Losers
Tullow Oil
Petrofac
Anglo American
Sabmiller
Rsa Insurance
Royal Mail
Rio Tinto
Bhp Billiton
Imperial Tobacco
Intercontinental Hotels
Severn Trent
Weir

396.00
778.00
1268.00
3422.00
452.40
404.50
2898.00
1474.00
2878.00
2639.00
1991.00
1838.00

-7.0
-5.7
-4.0
-4.0
-3.4
-3.2
-3.2
-2.8
-2.8
-2.6
-2.5
-2.0

-53.7
-36.4
-3.9
10.4
395.0
-29.0
-15.0
-21.1
23.1
21.0
16.8
-13.8

Losers
Nostrum Oil & Gas
Enquest
Afren
Just Eat
Hochschild Mining
Vedanta Resources
Amec Foster Wheeler
Evraz
Blackrock World Mining Trust
Ferrexpo
Ophir Energy
Al Noor Hospitals

Dec 05
price(p)

%Chg
week

%Chg
ytd

567.50
1486.00
329.40
288.70
49.61
311.70
1129.00
119.40
335.50
147.30
195.60
2441.00

14.4
10.1
10.0
9.2
8.6
8.2
7.4
7.3
6.8
6.7
6.7
6.7

10.6
37.6
27.1
11.4
-6.1
-9.7
-33.3
-29.9
-31.8
50.3

FTSE SmallCap
Winners
Stobart Ld
Consort Medical
Robert Walters
Brammer
Anite
Porvair
Cls Holdings
Polypipe
Menzies(john)
Exova
888 Holdings
Jpmorgan Japan Smaller Co Tst

560.00
43.86
45.86
312.50
86.25
678.50
874.50
140.30
327.40
64.70
138.10
940.00

-11.8
-11.5
-11.4
-10.7
-8.0
-7.0
-6.4
-6.0
-5.9
-5.4
-5.0
-5.0

-67.4
-72.9
-38.9
-27.3
25.4
-29.6
-66.1
-57.9
4.7

Losers
Jkx Oil & Gas
Asia Resource Minerals
Kenmare Resources
Salamander Energy
Connect
Petropavlovsk
Optos
Premier Foods
Punch Taverns
Utv Media
Candover Investments
Gulf Marine Services

Dec 05
price(p)

%Chg
week

%Chg
ytd

116.50
792.50
308.25
313.00
83.75
277.75
1570.00
260.00
358.75
165.00
142.00
207.00

13.7
13.2
10.7
10.2
10.2
9.6
9.0
8.4
6.8
6.1
5.4
5.3

-16.2
-17.2
-1.0
-30.4
-15.4
1.9
13.9
-49.3
-17.7
3.0

Dec 05
Industry Sectors
price(p)
Winners
Construction & Materials
4147.19
Software & Computer Services 1249.78
Chemicals
11137.02
Automobiles & Parts
8339.88
Aerospace & Defense
4825.40
Technology Hardware & Equip. 1144.20
Electronic & Electrical Equip.
3896.39
Food & Drug Retailers
2775.08
General Industrials
3950.08
Travel & Leisure
8102.43
Fixed Line Telecommunication 4763.68
Food Producers
8419.95

12.75
11.25
4.50
63.75
152.75
16.00
220.00
33.50
113.25
180.00
447.00
106.00

-54.5
-35.7
-23.1
-20.1
-19.6
-17.9
-10.2
-9.5
-9.4
-8.6
-7.5
-7.4

-82.2
-95.1
-78.4
-43.0
-78.0
8.9
-73.2
-52.8
-16.3
14.6
-

Losers
Industrial Metals
Oil Equipment & Services
Mining
Tobacco
Beverages
Industrial Transportation
Mobile Telecommunications
Pharmaceuticals & Biotech.
Equity Investment Instruments
Gas Water & Multiutilities
Real Estate Investment Trusts
Nonlife Insurance

%Chg
week

%Chg
ytd

4.3
4.1
3.3
3.3
3.1
3.0
2.5
2.4
2.2
2.2
2.0
1.8

-3.6
6.7
2.7
-4.5
-10.6
-9.1
-14.2
-37.0
-14.6
10.5
7.8
16.0

-6.0
-3.8
-2.5
-1.9
-1.8
-1.1
-1.1
-0.6
-0.2
-0.1
0.0
0.0

-0.2
-22.5
-11.0
17.5
1.7
-17.4
-5.6
13.7
7.6
9.2
21.7
3.3

1406.90
17119.89
14612.92
42825.91
14857.25
2676.42
5199.01
13314.72
7287.43
6190.26
3093.96
1891.87

Based on last week's performance. Price at suspension.

CURRENCIES
Dec 05
Argentina
Australia
Bahrain
Bolivia
Brazil
Canada
Chile
China
Colombia
Costa Rica
Czech Republic
Denmark
Egypt
Hong Kong
Hungary
India

Currency
Argentine Peso
Australian Dollar
Bahrainin Dinar
Bolivian Boliviano
Brazilian Real
Canadian Dollar
Chilean Peso
Chinese Yuan
Colombian Peso
Costa Rican Colon
Czech Koruna
Danish Krone
Egyptian Pound
Hong Kong Dollar
Hungarian Forint
Indian Rupee

DOLLAR
Closing
Mid
8.5525
1.2002
0.3771
6.9100
2.6020
1.1427
612.0200
6.1502
2301.5050
533.8450
22.4417
6.0496
7.1501
7.7515
249.5243
61.8650

Day's
Change
0.0075
0.0096
0.0162
0.0051
2.2900
-0.0044
15.0550
-0.1000
0.2486
0.0673
-0.0007
2.6642
-0.0500

EURO
POUND
Closing
Day's
Closing
Day's
Mid
Change
Mid
Change
10.5170
-0.1105
13.3356
-0.0806
1.4759
-0.0048
1.8714
0.0022
0.4637
-0.0053
0.5879
-0.0041
8.4972
-0.0968
10.7745
-0.0746
3.1996
-0.0163
4.0571
-0.0027
1.4051
-0.0097
1.7817
-0.0043
752.5978
-5.7257 954.2982
-3.0120
7.5629
-0.0916
9.5898
-0.0733
2830.1489 -13.5182 3588.6451
-1.2097
656.4664
-7.6030 832.4030
-5.9205
27.5964
-0.0052
34.9924
0.1480
7.4392
-0.0010
9.4330
0.0404
8.7924
-0.1002
11.1488
-0.0772
9.5320
-0.1094
12.0866
-0.0847
306.8387
-0.1822 389.0732
1.4890
76.0751
-0.9289
96.4636
-0.7464

Dec 05
Indonesia
Iran
Israel
Japan
..One Month
..Three Month
..One Year
Kenya
Kuwait
Malaysia
Mexico
New Zealand
Nigeria
Norway
Pakistan
Peru

Currency
Indonesian Rupiah
Iranian Rial
Israeli Shekel
Japanese Yen

Kenyan Shilling
Kuwaiti Dinar
Malaysian Ringgit
Mexican Peson
New Zealand Dollar
Nigerian Naira
Norwegian Krone
Pakistani Rupee
Peruvian Nuevo Sol

DOLLAR
Closing
Mid
12298.5000
9740.5000
3.9820
121.4150
121.4149
121.4149
121.4142
90.3800
0.2921
3.4710
14.2899
1.2946
179.2500
7.1413
101.2450
2.9520

Day's
Change
-9.0000
0.0248
1.6900
1.6898
1.6897
1.6885
0.0800
0.0008
0.0250
0.1750
0.0112
-0.6000
0.1035
-0.1950
0.0045

EURO
POUND
Closing
Day's
Closing
Day's
Mid
Change
Mid
Change
15123.4222 -183.4812 19176.5586
-146.9262
11977.8410 -136.4696 15187.9893
-105.1495
4.8966
-0.0250
6.2090
-0.0041
149.3034
0.4009 189.3175
1.3426
149.3033
0.4008 189.3174
1.3423
149.3033
0.4008 189.3172
1.3419
149.3031
0.4005 189.3174
1.3408
111.1398
-1.1666 140.9259
-0.8502
0.3592
-0.0031
0.4555
-0.0019
4.2683
-0.0175
5.4122
0.0018
17.5722
0.0175
22.2817
0.1205
1.5919
-0.0042
2.0186
0.0036
220.4228
-3.2574 279.4973
-2.8773
8.7816
0.0287
11.1351
0.0855
124.5004
-1.6609 157.8672
-1.3992
3.6301
-0.0358
4.6029
-0.0248

Dec 05
Currency
Philippines
Philippine Peso
Poland
Polish Zloty
Romania
Romanian Leu
Russia
Russian Ruble
Saudi Arabia
Saudi Riyal
Singapore
Singapore Dollar
South Africa
South African Rand
South Korean Won
South Korea
Sweden
Swedish Krona
Switzerland
Swiss Franc
Taiwan
New Taiwan Dollar
Thailand
Thai Baht
Tunisia
Tunisian Dinar
Turkey
Turkish Lira
United Arab Emirates
UAE Dirham
United Kingdom
Pound Sterling

DOLLAR
Closing
Mid
44.5300
3.3811
3.6094
52.9500
3.7534
1.3223
11.3480
1113.9500
7.5606
0.9777
31.1090
32.8925
1.8614
2.2616
3.6731
0.6413

Day's
Change
-0.1050
0.0382
0.0478
-1.3500
-0.0001
0.0112
0.1681
-1.3000
0.0946
0.0109
-0.0050
0.0159
0.0281
0.0044

EURO
POUND
Closing
Day's
Closing
Day's
Mid
Change
Mid
Change
54.7583
-0.7544
69.4338
-0.6456
4.1577
0.0001
5.2719
0.0235
4.4384
0.0088
5.6279
0.0360
65.1123
-2.4208
82.5628
-2.6912
4.6155
-0.0526
5.8525
-0.0406
1.6260
-0.0047
2.0617
0.0032
13.9546
0.0501
17.6945
0.1414
1369.8185 -17.2221 1736.9374
-14.0676
9.2973
0.0118
11.7890
0.0670
1.2023
-0.0001
1.5245
0.0066
38.2546
-0.4420
48.5070
-0.3437
40.4477
-0.4608
51.2879
-0.3551
2.2889
-0.0064
2.9023
0.0048
2.7810
0.0033
3.5263
0.0198
4.5167
-0.0515
5.7272
-0.0397
0.7886
-0.0035
-

Dec 05
..One Month
..Three Month
..One Year
United States
..One Month
..Three Month
..One Year
Venezuela
Vietnam
European Union
..One Month
..Three Month
..One Year

Currency

United States Dollar

Venezuelan Bolivar Fuerte

Vietnamese Dong
Euro

DOLLAR
Closing
Mid
0.6413
0.6412
0.6410
12.0000
21335.0000
0.8132
0.8132
0.8131
0.8126

Day's
Change
0.0044
0.0044
0.0044
-5.0000
0.0092
0.0092
0.0092
0.0091

EURO
POUND
Closing
Day's
Closing
Day's
Mid
Change
Mid
Change
0.7886
-0.0035
0.7885
-0.0035
0.7881
-0.0035
1.2297
-0.0140
1.5593
-0.0108
1.2297
-0.3404
1.5592
-0.0108
1.2296
-0.3404
1.5592
-0.0108
1.2291
-0.3404
1.5589
-0.0108
14.7563
-0.1681
18.7111
-0.1296
26235.5639 -305.1230 33266.9104
-238.1924
1.2680
0.0056
1.2680
0.0056
1.2679
0.0056
1.2674
0.0056

Rates are derived from WM/Reuters at 4pm (London time). Currency redenominated by 1000. Some values are rounded by the F.T. The exchange rates printed in this table are also available on the internet at http://www.FT.com/marketsdata

UK SERIES

FTSE ACTUARIES SHARE INDICES

www.ft.com/equities

Produced in conjunction with the Institute and Faculty of Actuaries

Strlg Day's
Euro
Strlg
Strlg
Year
Div
P/E
Dec 05 chge%
Index
Dec 04
Dec 03
ago yield% Cover
ratio
FTSE 100 (100)
6742.84
0.95 6663.56 6679.37 6716.63 6551.99 3.46 1.86 15.56
FTSE 250 (250)
16002.88
1.03 15814.72 15840.51 15811.55 15317.05 2.61 2.08 18.36
17245.19
1.10 17042.42 17058.32 17019.28 16622.80 2.66 2.21 16.97
FTSE 250 ex Inv Co (212)
FTSE 350 (350)
3673.68
0.96 3630.49 3638.68 3654.79 3561.74 3.33 1.89 15.94
FTSE 350 ex Investment Trusts (312) 3654.00
0.97 3611.04 3618.89 3635.15 3546.99 3.35 1.90 15.74
FTSE 350 Higher Yield (96)
3610.08
0.73 3567.63 3583.92 3617.68 3561.83 4.55 1.70 12.95
FTSE 350 Lower Yield (254)
3378.18
1.21 3338.46 3337.67 3334.36 3211.49 2.01 2.35 21.25
FTSE SmallCap (292)
4367.90
0.46 4316.54 4347.87 4344.31 4328.29 2.42 1.64 25.11
FTSE SmallCap ex Inv Co (152)
3780.52
0.41 3736.06 3764.92 3752.61 3900.25 2.31 2.33 18.60
FTSE All-Share (642)
3607.25
0.95 3564.84 3573.47 3588.67 3499.80 3.30 1.88 16.14
FTSE All-Share ex Inv Co (464)
3575.04
0.96 3533.01 3541.03 3556.46 3474.03 3.33 1.90 15.79
FTSE All-Share ex Multinationals (577) 1147.85
1.32
940.17 1132.87 1134.23 1112.69 2.83 2.04 17.27
FTSE Fledgling (98)
6809.45
0.27 6729.38 6791.12 6808.16 6406.24 2.38 -0.70 -59.83
FTSE Fledgling ex Inv Co (53)
8432.94
0.12 8333.79 8423.25 8439.50 7663.21 1.81 -3.95 -13.95
FTSE All-Small (390)
3018.66
0.45 2983.17 3005.10 3003.15 2981.60 2.42 1.53 27.04
FTSE All-Small ex Inv Co Index (205) 2804.98
0.40 2772.00 2793.76 2785.23 2870.41 2.29 2.12 20.61
FTSE AIM All-Share Index (843)
714.13
0.55
705.73
710.23
711.50
822.20 1.10 2.34 38.85
FTSE Sector Indices
Oil & Gas (22)
7661.94
Oil & Gas Producers (15)
7281.61
Oil Equipment Services & Distribution (7)17666.12
Basic Materials (31)
4830.79
11887.60
Chemicals (7)
Forestry & Paper (1)
12952.39
Industrial Metals & Mining (2)
1456.25
Mining (21)
13994.34
Industrials (115)
4301.83
Construction & Materials (14)
4311.97
Aerospace & Defense (9)
5006.07
General Industrials (6)
3207.73
Electronic & Electrical Equipment (12) 4912.73
Industrial Engineering (14)
9182.83
Industrial Transportation (8)
3978.37
Support Services (52)
6321.89
Consumer Goods (38)
16774.72
Automobiles & Parts (1)
8382.62
Beverages (6)
14904.91
Food Producers (10)
8466.41
Household Goods & Home Construction (12)10603.61
Leisure Goods (2)
5211.59
Personal Goods (5)
22231.75
Tobacco (2)
42825.99
Health Care (19)
9641.95
Health Care Equipment & Services (9) 6436.74
Pharmaceuticals & Biotechnology (10)13197.33
Consumer Services (96)
4564.08
Food & Drug Retailers (7)
2889.17
General Retailers (30)
2829.61
Media (24)
6717.06
Travel & Leisure (35)
7911.52
Telecommunications (8)
3869.03
Fixed Line Telecommunications (6) 4831.17
Mobile Telecommunications (2)
5191.14
Utilities (8)
8994.49
Electricity (3)
10352.58
Gas Water & Multiutilities (5)
8181.07
Financials (283)
4770.78
Banks (7)
4523.10
Nonlife Insurance (12)
2170.56
Life Insurance/Assurance (12)
7903.67
Index- Real Estate Investment & Services (25) 2675.87
Real Estate Investment Trusts (20) 2785.21
General Financial (29)
7302.14
Equity Investment Instruments (178) 7581.19
Non Financials (359)
4176.91
Technology (22)
1203.43
Software & Computer Services (14) 1364.98
Technology Hardware & Equipment (8) 1457.24

-0.47
-0.44
-1.30
-0.97
1.66
0.92
-0.20
-1.31
1.33
1.64
1.42
1.23
1.40
2.55
0.72
1.06
1.28
3.24
1.69
2.03
1.46
1.70
1.63
0.42
0.71
1.62
0.64
1.33
2.10
0.88
0.83
1.75
2.64
1.97
3.04
0.69
1.14
0.56
1.48
2.15
1.02
1.31
0.64
0.40
1.37
0.54
0.76
1.40
0.42
2.13

7571.85
7196.00
17458.40
4773.99
11747.83
12800.10
1439.13
13829.79
4251.25
4261.27
4947.21
3170.01
4854.96
9074.86
3931.59
6247.56
16577.48
8284.05
14729.66
8366.86
10478.94
5150.32
21970.35
42322.44
9528.57
6361.05
13042.15
4510.42
2855.20
2796.34
6638.08
7818.49
3823.54
4774.36
5130.11
8888.73
10230.85
8084.87
4714.68
4469.92
2145.03
7810.73
2644.40
2752.47
7216.28
7492.05
4127.80
1189.28
1348.93
1440.11

7698.10
7313.80
17898.80
4877.98
11694.05
12834.86
1459.18
14180.26
4245.29
4242.58
4936.14
3168.80
4844.95
8954.68
3949.97
6255.45
16562.43
8119.41
14657.35
8297.86
10450.80
5124.62
21875.53
42648.07
9573.67
6333.84
13113.86
4504.30
2829.88
2804.84
6661.52
7775.28
3769.61
4737.87
5037.97
8932.65
10236.39
8135.36
4701.35
4427.76
2148.73
7801.33
2658.74
2774.02
7203.39
7540.43
4145.31
1186.79
1359.24
1426.80

7830.55
7437.80
18332.42
4943.34
11565.79
12811.35
1468.00
14414.61
4222.78
4200.68
4905.00
3123.41
4853.90
8851.63
3898.97
6243.48
16566.45
8140.56
14715.09
8288.03
10310.69
5171.85
21775.95
42944.86
9623.11
6333.10
13187.42
4500.29
2866.45
2800.87
6654.24
7736.80
3795.64
4704.07
5115.43
8964.42
10211.21
8178.70
4718.01
4445.80
2155.10
7835.35
2657.44
2786.15
7226.09
7551.44
4163.96
1169.69
1327.29
1415.93

8449.59
7977.42
23267.61
5224.52
11031.03
11242.25
1342.36
15479.74
4390.60
4242.96
5268.92
3476.60
5400.71
10192.40
4711.09
6124.46
14902.97
8563.57
14225.66
7172.25
9141.56
5663.82
20959.36
35839.75
8250.07
4808.73
11405.33
4470.10
4512.97
2620.02
6298.12
6731.07
3839.43
4338.60
5354.20
7799.14
8737.15
7148.08
4522.90
4720.87
2025.12
6603.20
2618.69
2242.75
6350.91
7042.56
4086.14
1172.66
1251.64
1484.02

4.41 1.76
4.42 1.75
4.01 1.97
3.76 2.79
2.16 2.42
2.93 3.19
0.68 14.83
3.98 2.79
2.56 2.07
3.57 0.34
2.17 4.02
3.51 1.86
2.30 2.12
2.59 2.34
3.84 1.48
2.37 1.76
2.91 1.87
2.27 3.62
2.31 1.93
1.86 1.86
2.37 2.51
4.10 1.09
3.00 2.65
3.95 1.30
3.51 1.25
1.38 2.46
3.69 1.21
2.71 2.01
5.55 2.08
2.31 2.42
2.83 1.49
1.90 2.30
3.99 2.53
2.75 1.90
4.73 2.74
4.75 1.24
4.82 0.69
4.72 1.40
3.05 1.78
3.28 1.18
3.08 1.44
3.23 1.84
1.76 5.52
2.96 5.85
2.96 1.90
2.41 1.04
3.38 1.91
1.37 2.03
2.03 1.95
0.90 2.17

X/D
adj
230.31
400.15
440.80
120.32
120.57
161.98
68.35
100.91
87.72
117.12
117.42
31.29
168.40
158.28
69.95
64.36
7.85

Total
Return
5087.44
10842.85
11911.31
5596.79
2865.64
5561.32
3500.11
5817.92
5291.59
5560.67
2850.56
1900.42
11983.24
14449.16
5163.88
4975.67
757.62

12.91 345.25 6097.11

12.92 329.40 5990.09
12.66 702.50 12458.73
9.53 178.82 4519.06
19.12 249.46 10022.92
10.70 379.57 13162.84
9.85
9.30 1260.39
9.00 551.27 6817.35
18.92 107.00 4166.60
82.46 156.30 4300.88
11.48 107.80 5059.31
15.33 111.44 3378.31
20.49 102.77 4244.86
16.51 238.29 10468.94
17.62 152.66 3219.31
24.05 141.47 6189.25
18.41 475.62 11454.50
12.15 190.35 7515.44
22.45 343.99 9883.68
28.91 190.74 6913.37
16.85 225.93 7032.25
22.33 205.93 4218.47
12.58 465.25 13933.69
19.50 1693.62 24927.62
22.73 341.77 6779.88
29.36
93.07 5376.07
22.31 489.33 8227.05
18.41 121.91 4021.29
8.67 158.56 3249.19
17.92
63.87 3026.26
23.73 187.38 3856.06
22.90 146.34 7048.07
9.93 144.07 3882.43
19.21
97.14 4036.16
7.70 245.60 4631.03
17.02 418.54 9122.11
30.11 500.46 13014.79
15.08 376.09 8346.63
18.38 143.54 4025.25
25.73 150.03 2995.14
22.61
67.47 3539.43
16.82 254.83 7007.49
10.31
47.75 6734.08
5.78
81.08 3195.01
17.78 191.40 7684.45
39.94 168.23 3880.85
15.48 139.02 5641.76
35.74
15.66 1483.11
25.27
26.11 1749.78
51.35
12.98 1658.15

8.00
9.00
10.00
11.00
12.00
13.00
14.00
15.00
16.00 High/day Low/day
Hourly movements
FTSE 100
6715.75 6726.88 6721.95 6721.02 6724.24 6733.44 6744.26 6735.46 6742.23 6751.25 6712.33
FTSE 250
15926.00 15960.37 15951.32 15955.09 15952.96 15970.04 15985.98 15969.35 15990.36 16002.88 15924.37
FTSE SmallCap
4364.31 4366.19 4365.88 4366.03 4365.88 4368.04 4367.82 4366.11 4367.14 4369.23 4362.78
FTSE All-Share
3592.71 3598.79 3596.32 3596.04 3597.38 3602.04 3607.30 3602.84 3606.54 3610.45 3591.90
Time of FTSE 100 Day's high:15:42:00 Day's Low11:44:00 FTSE 100 2010/11 High: 6878.49(14/05/2014) Low: 6195.91(16/10/2014)
Time of FTSE All-Share Day's high:15:42:00 Day's Low11:44:00 FTSE 100 2010/11 High: 3685.07(24/02/2014) Low: 3308.67(16/10/2014)
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
Issue
price
p
0.90
0.044
0.0675
0.006
-

Amount
paid
up
-

Latest
renun.
date
2014-10-29
2014-10-31
2014-12-01
-

FT 30 INDEX

FTSE SECTORS: LEADERS & LAGGARDS

Dec 05 Dec 04 Dec 03 Dec 02 Dec 01 Yr Ago

High
Low Year to date percentage changes
FT 30
2809.40 2775.40 2781.60 2787.40 2754.80
0.00 2856.60 2433.00 Health Care Eq & Srv
29.86
FT 30 Div Yield
1.80
1.82
1.82
1.81
1.82
0.00
3.93
2.74 Real Est Invest & Tr
21.22
P/E Ratio net
24.77
24.55
24.58
24.71
24.48
0.00
19.44
14.26 Tobacco
17.66
FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35
Food Producers
15.11
FT 30 hourly changes
Health Care
14.86
8
9
10
11
12
13
14
15
16
High
Low Household Goods & Ho
13.85
2775.4 2797.3 2795.1 2797.3 2797.8 2802.1 2806 2805 2806.4 2810.6 2775.4 Pharmace & Biotech
13.82
FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30
Electricity
12.72
Life Insurance
12.59
Travel & Leisure
10.23
Consumer Goods
10.13
Utilities
9.95
Dec 04 Dec 03 Mnth Ago
Dec 05 Dec 04 Mnth Ago
Gas Water & Multi
9.19
Australia
101.12 101.62 103.01 Sweden
81.54
81.50
81.48 Financial Services
9.17
Canada
102.03 102.24 102.23 Switzerland
147.40 146.90 146.40 General Retailers
8.43
Denmark
108.49 108.15 107.88 UK
87.18
87.65
87.95 Fixed Line Telecomms
7.83
Japan
121.67 122.13 127.16 USA
95.74
95.98
93.94 Equity Invest Instr
5.83
New Zealand
124.51 124.44 120.64 Euro
93.99
93.28
93.01
Norway
94.09
94.71
96.80
Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100.
Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk

FX: EFFECTIVE INDICES

Forestry & Paper

Software & Comp Serv
Personal Goods
Nonlife Insurance
Financials
Media
Beverages
Chemicals
FTSE 250 Index
FTSE All{HY-}Share Index
FTSE 100 Index
Real Est Invest & Se
NON FINANCIALS Index
Consumer Services
FTSE SmallCap Index
Leisure Goods
Support Services
Industrial Metals &

High
21.68
0.42
6.00
0.40
515.50

Low
21.68
0.41
5.50
0.35
502.50

Stock
Ceramic Fuel Cells Ltd
Ferrum Crescent Ltd
Plaza Centers NV
Scotgold Resources Ltd
UBM PLC

+or0.02
-0.875
-0.025
4.50

Telecommunications
Construct & Material
Technology
Automobiles & Parts
Banks
Mobile Telecomms
Industrials
Tech Hardware & Eq
Basic Materials
Aerospace & Defense
Mining
Oil & Gas Producers
Oil & Gas
Industrial Eng
Electronic & Elec Eq
Industrial Transport
Oil Equipment & Serv
Food & Drug Retailer

-2.10
-2.72
-2.93
-4.45
-5.22
-5.72
-7.05
-8.41
-9.79
-10.28
-11.30
-12.09
-12.44
-14.20
-15.00
-16.20
-21.77
-36.00

FTSE GLOBAL EQUITY INDEX SERIES

Dec 05
Regions & countries
FTSE Global All Cap
FTSE Global All Cap
FTSE Global Large Cap
FTSE Global Mid Cap
FTSE Global Small Cap
FTSE All-World
FTSE World
FTSE Global All Cap ex UNITED KINGDOM In
FTSE Global All Cap ex USA
FTSE Global All Cap ex JAPAN
FTSE Developed
FTSE Developed All Cap
FTSE Developed Large Cap
FTSE Developed Europe Large Cap
FTSE Developed Europe Mid Cap
FTSE Dev Europe Small Cap
FTSE North America Large Cap
FTSE North America Mid Cap
FTSE North America Small Cap
FTSE North America
FTSE Developed ex North America
FTSE Japan Large Cap
FTSE Japan Mid Cap
FTSE Global wi JAPAN Small Cap
FTSE Japan
FTSE Asia Pacific Large Cap ex Japan
FTSE Asia Pacific Mid Cap ex Japan
FTSE Asia Pacific Small Cap ex Japan
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
FTSE Emerging Large Cap
FTSE Emerging Mid Cap
FTSE Emerging Small Cap
FTSE Emerging Europe
FTSE Latin America All Cap
FTSE Middle East and Africa All Cap
FTSE Global wi UNITED KINGDOM All Cap In
FTSE Global wi USA All Cap
FTSE Europe All Cap
FTSE Eurobloc All Cap
FTSE RAFI All World 3000
FTSE RAFI US 1000
FTSE EDHEC-Risk Efficient All-World
FTSE EDHEC-Risk Efficient Developed Europe

No of
stocks
7538
6909
1349
1669
4520
3018
2540
7209
5555
6294
2113
5644
901
201
318
705
332
398
1498
730
1383
174
301
769
475
475
446
1319
921
1894
448
457
989
86
245
210
329
1983
1371
629
3030
1030
3018
519

US $
indices
477.43
490.12
425.24
623.20
652.20
279.83
494.47
488.76
459.34
491.60
445.83
466.61
414.59
369.50
514.42
696.27
448.81
678.78
684.51
301.18
240.69
311.20
425.01
465.19
127.03
624.16
813.65
541.05
491.84
708.82
673.56
879.81
723.50
355.28
945.12
776.59
367.08
512.03
414.94
387.08
6009.16
9327.91
322.67
287.00

Day
%
0.1
0.0
0.1
0.0
0.2
0.1
0.1
0.1
0.0
0.2
0.1
0.1
0.1
0.6
0.5
0.2
0.1
0.1
0.4
0.1
0.1
-1.0
-1.4
-1.0
-1.0
-0.3
-0.4
-0.1
-0.3
-0.2
-0.2
-0.5
0.0
-1.3
0.1
-1.1
0.3
0.2
0.5
1.1
0.1
0.2
0.0
0.3

Mth
%
1.4
1.1
1.4
1.9
0.6
1.5
1.6
1.5
0.4
1.6
1.8
1.7
1.8
2.4
4.0
2.2
2.4
2.1
0.9
2.3
1.0
-0.5
0.1
-1.2
-0.4
-1.0
-0.6
-1.5
-0.9
-1.4
-1.8
-0.3
-0.3
-6.2
-7.3
-2.2
0.6
2.4
2.3
4.6
1.1
2.2
1.7
2.7

YTD
Total
%
retn
3.6 636.88
4.8 642.61
4.2 579.24
3.1 797.36
0.6 810.46
4.0 393.58
4.0 933.87
4.5 643.50
-3.4 647.18
4.3 661.24
4.3 599.05
3.8 620.62
4.5 563.99
-5.0 562.98
-3.8 718.88
-7.1 948.49
11.6 577.18
8.6 823.20
3.8 807.50
11.1 397.32
-4.5 363.69
-4.3 381.27
-1.1 504.81
-2.8 569.44
-3.7 175.01
1.6 902.63
2.4 1140.72
-1.3 747.88
1.7 756.49
1.4 981.11
1.5 937.48
1.0 1214.78
1.2 966.64
-22.3 498.11
-11.4 1353.47
5.9 1125.11
-6.2 559.43
11.0 642.44
-5.6 614.34
-6.2 581.09
1.6 7341.76
10.5 11492.90
6.7 423.81
-2.5 408.09

YTD Gr Div Dec 05

No of
US $
Day
Mth
YTD
Total
YTD Gr Div
% Yield Sectors
stocks indices
%
%
%
retn
% Yield
176 407.32
-1.1
-1.1 -14.2 599.27 -11.6
3.5
6.1
2.3 Oil & Gas
121 371.36
-1.1
-1.1 -14.3 555.41 -11.6
3.6
7.2
2.2 Oil & Gas Producers
46 420.01
-1.3
-1.3 -13.9 565.50 -11.9
3.2
6.8
2.4 Oil Equipment & Services
270 450.60
-0.3
-0.3
-7.8 640.63
-5.4
2.8
5.1
2.0 Basic Materials
115 642.16
0.4
0.4
0.3 920.46
2.7
2.3
2.3
1.8 Chemicals
18 211.34
0.3
0.3
0.2 329.24
3.3
2.9
6.5
2.4 Forestry & Paper
75 439.16
-0.5
-0.5 -13.4 625.29 -11.4
2.5
6.5
2.3 Industrial Metals & Mining
6.8
2.2 Mining
62 586.13
-1.9
-1.9 -20.5 822.06 -17.9
4.0
-0.6
2.8 Industrials
533 319.50
0.0
0.0
1.1 433.86
3.2
2.1
6.7
2.4 Construction & Materials
114 440.38
0.4
0.4
-2.4 626.75
-0.3
2.1
6.8
2.3 Aerospace & Defense
28 503.92
0.6
0.6
2.7 679.68
4.7
1.9
6.2
2.2 General Industrials
55 220.31
0.0
0.0
-1.8 319.38
0.5
2.5
7.1
2.4 Electronic & Electrical Equipment
67 336.41
-0.5
-0.5
4.7 423.11
6.5
1.6
-1.8
3.3 Industrial Engineering
103 637.40
0.0
0.0
-4.1 850.21
-2.1
2.1
-1.4
2.5 Industrial Transportation
95 598.53
-0.2
-0.2
11.7 811.86
14.0
2.0
-5.0
2.4 Support Services
71 271.87
-0.1
-0.1
0.3 355.92
2.5
2.0
13.9
2.0 Consumer Goods
405 414.39
0.1
0.1
3.3 574.26
5.8
2.3
10.2
1.6 Automobiles & Parts
97 401.86
0.3
0.3
-1.7 534.88
0.5
2.0
5.2
1.6 Beverages
47 554.75
0.4
0.4
5.5 779.41
8.1
2.4
13.3
2.0 Food Producers
100 559.81
0.0
0.0
5.3 800.65
7.8
2.2
-1.7
2.8 Household Goods & Home Construction
45 395.05
-0.1
-0.1
7.6 545.28
10.4
2.3
-2.4
1.7 Leisure Goods
26 127.48
-0.1
-0.1
-0.4 160.76
0.9
1.1
0.4
1.4 Personal Goods
77 595.25
0.2
0.2
-1.2 792.31
0.7
2.0
-1.1
1.6 Tobacco
13 1131.19
-0.2
-0.2
10.9 2102.72
15.2
4.0
160 449.39
0.4
0.4
20.9 614.03
23.3
1.8
-1.8
1.7 Health Care
4.7
3.0 Health Care Equipment & Services
58 594.82
0.5
0.5
23.0 674.47
24.3
1.0
5.1
2.6 Pharmaceuticals & Biotechnology
102 348.32
0.4
0.4
20.3 493.31
23.0
2.0
1.2
2.7 Consumer Services
382 370.42
0.0
0.0
4.2 472.72
6.0
1.6
4.7
2.9 Food & Drug Retailers
56 294.26
0.1
0.1
3.7 390.48
5.9
2.0
4.3
2.9 General Retailers
119 469.26
-0.3
-0.3
3.0 585.49
4.7
1.5
4.5
3.0 Media
88 299.36
0.0
0.0
7.4 382.09
8.8
1.5
3.7
2.7 Travel & Leisure
119 361.66
0.4
0.4
2.5 466.01
4.3
1.7
3.7
2.6 Telecommunication
95 173.29
0.1
0.1
-1.6 292.43
2.4
4.1
-19.5
3.6 Fixed Line Telecommuniations
45 142.31
0.2
0.2
3.0 261.25
7.7
4.6
-8.6
3.8 Mobile Telecommunications
50 187.42
0.0
0.0
-6.4 288.75
-3.1
3.3
161 268.40
-0.2
-0.2
9.6 472.82
13.8
3.7
8.8
2.6 Utilities
112 282.36
-0.3
-0.3
12.8 492.83
17.0
3.6
-3.0
3.4 Electricity
49 302.82
-0.1
-0.1
5.2 545.68
9.3
3.7
13.0
1.8 Gas Water & Multiutilities
658 219.64
0.6
0.6
3.7 331.20
6.6
2.7
-2.6
3.1 Financials
241 206.30
0.8
0.8
-0.1 330.34
3.1
3.0
-3.4
2.9 Banks
69 216.25
0.2
0.2
8.1 293.92
10.7
2.1
4.4
2.8 Nonlife Insurance
48 213.43
0.9
0.9
3.3 315.14
5.9
2.5
12.9
2.2 Life Insurance
136 235.15
0.8
0.8
8.2 306.80
10.1
1.7
9.0
2.1 Financial Services
178 174.54
-0.2
-0.2
17.8 204.56
19.8
1.5
0.1
2.7 Technology
Software & Computer Services
78 273.68
-0.5
-0.5
8.1 310.54
9.4
1.1
Technology Hardware & Equipment
100 142.68
0.0
0.0
26.7 171.01
29.5
1.9
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/
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
(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
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
Group companies and is used by FTSE International Limited under licence.

UK COMPANY RESULTS
closing
Price p
21.68
0.42
5.50
0.40
515.50

5.35
5.06
3.15
3.11
2.76
2.07
1.88
1.80
0.42
-0.07
-0.09
-0.14
-1.04
-1.22
-1.43
-1.67
-1.89
-2.07

FTSE 100 SUMMARY

Company
Berkeley Group Holdings (The)
Global Resources Investment Trust
Inspirit Energy Holdings
Ironveld
Majedie Investments
Polar Capital Technology Trust

FTSE 100

Closing Week's
Price Change FTSE 100

3i Group PLC
Aberdeen Asset Management PLC
Admiral Group PLC
Aggreko PLC
Anglo American PLC
Antofagasta PLC
ARM Holdings PLC
Ashtead Group PLC
Associated British Foods PLC
AstraZeneca PLC
Aviva PLC
Babcock International Group PLC
BAE Systems PLC
Barclays PLC
BG Group PLC
BHP Billiton PLC
BP PLC
British American Tobacco PLC
British Land Company PLC
British Sky Broadcasting Group PLC
BT Group PLC
Bunzl PLC
Burberry Group PLC
Capita PLC
Carnival PLC
Centrica PLC
Coca-Cola HBC AG
Compass Group PLC
CRH PLC
Diageo PLC
Direct Line Insurance Group PLC
Dixons Carphone PLC
easyJet PLC
Experian PLC
Fresnillo PLC
Friends Life Group Ltd
G4S PLC
GKN PLC
GlaxoSmithKline PLC
Glencore PLC
Hammerson PLC
Hargreaves Lansdown PLC
HSBC Holdings PLC
IMI PLC
Imperial Tobacco Group PLC
InterContinental Hotels Group PLC
International Consolidated Airlines Group SA
Intertek Group PLC
Intu Properties PLC
ITV PLC
Johnson Matthey PLC

457.80
467.70
1278
1558
1268
732.00
946.50
1101
3284
4739.5
506.00
1144
481.70
249.45
907.50
1474
424.50
3744.5
775.50
949.50
420.00
1814
1678
1055
2805
286.00
1431
1104
1579
1971
291.70
444.10
1761
1055
719.50
380.50
276.10
356.70
1470.5
316.50
623.50
991.00
643.10
1219
2878
2639
486.70
2319
350.50
213.20
3409

13.80
17.80
38.00
25.00
-53.50
-5.00
32.00
47.00
81.00
-40.50
-2.00
7.00
0.60
4.30
7.30
-43.00
4.30
-50.00
7.50
17.50
9.80
28.00
28.00
-15.00
-15.00
1.40
-21.00
14.00
68.00
-10.00
-2.80
20.80
108.00
42.00
7.50
11.30
-0.30
11.40
-14.50
-3.90
0.50
15.50
6.10
38.00
-82.00
-71.00
29.20
-16.00
-6.40
-1.00
83.00

Closing Week's
Price Change

Kingfisher PLC
Land Securities Group PLC
Legal & General Group PLC
Lloyds Banking Group PLC
London Stock Exchange Group PLC
Marks and Spencer Group PLC
Meggitt PLC
Mondi PLC
Morrison (Wm) Supermarkets PLC
National Grid PLC
Next PLC
Old Mutual PLC
Pearson PLC
Persimmon PLC
Petrofac Ltd
Prudential PLC
Randgold Resources Ltd
Reckitt Benckiser Group PLC
Reed Elsevier PLC
Rio Tinto PLC
Rolls-Royce Holdings PLC
Royal Bank Of Scotland Group PLC
Royal Dutch Shell PLC (A)
Royal Dutch Shell PLC (B)
Royal Mail PLC
RSA Insurance Group PLC
SABMiller PLC
Sage Group PLC
Sainsbury (J) PLC
Schroders PLC
Severn Trent PLC
Shire PLC
Smith & Nephew PLC
Smiths Group PLC
Sports Direct International PLC
SSE PLC
St. James's Place PLC
Standard Chartered PLC
Standard Life PLC
Tesco PLC
Travis Perkins PLC
TUI Travel PLC
Tullow Oil PLC
Unilever PLC
United Utilities Group PLC
Vodafone Group PLC
Weir Group PLC
Whitbread PLC
Wolseley PLC
WPP PLC

328.20
1185
247.00
80.89
2251
496.90
518.00
1102
184.80
930.00
6655
197.60
1220
1613
778.00
1550.5
4189
5255
1108
2898
900.00
403.50
2149
2230.5
404.50
452.40
3422
447.90
238.30
2768
1991
4602
1114
1145
699.50
1679
821.50
973.00
426.30
189.60
1838
450.00
396.00
2729
900.00
230.60
1838
4675
3690
1367

16.20
-3.00
0.30
0.54
-4.00
8.40
15.00
7.00
6.30
0.00
-120.00
-2.70
-11.00
80.00
-47.00
2.50
-64.00
0.00
-5.00
-94.50
57.50
8.20
16.50
7.50
-13.30
-15.80
-142.00
40.80
4.90
73.00
-52.00
45.00
4.00
-12.00
39.00
39.00
27.50
35.90
2.30
3.15
31.00
5.30
-30.00
23.00
-5.50
-3.35
-38.00
88.00
100.00
27.00

UK STOCK MARKET TRADING DATA

Dec 05
Dec 04
Dec 03
Dec 02
Dec 01
Yr Ago
SEAQ Bargains
5782.00
5096.00
5850.00
7323.00
6406.00
6406.00
Order Book Turnover (m)
54.48
36.35
49.91
77.12
77.12
Order Book Bargains
673098.00 702148.00
5035.00 809019.00 812765.00 812765.00
Order Book Shares Traded (m)
1351.00
1348.00
3.00
2351.00
1519.00
1519.00
Total Equity Turnover (m)
3644.16
3735.70
3664.60
0.68
0.68
Total Mkt Bargains
805020.00 819468.00 886003.00
6.00
6.00
Total Shares Traded (m)
3536.00
3520.00
3497.00
0.00
0.00
Excluding intra-market and overseas turnover. *UK only total at 6pm. UK plus intra-market turnover. (u) Unavaliable.
(c) Market closed.

All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
liable for any loss arising from the reliance on or use of the listed information.
For all queries e-mail ft.reader.enquiries@morningstar.com

Data provided by Morningstar | www.morningstar.co.uk

UK RECENT EQUITY ISSUES

Int
Pre
Pre
Pre
Pre
Int

Turnover
821
1022.2
-

Pre-tax
169.5
304.9
10.301L
0.095L
1.377L
0.886L
0.75L
19.739
16.166
66.915
113.706

Figures in m. Earnings shown basic. Figures in light text are for corresponding period year earlier.
For more information on dividend payments visit www.ft.com/marketsdata

EPS(p)
178.6
0.47L
0.24L
0.33L
9.4
0.82L

Div(p)
100
0.02L
3.01L
6.8
0.39

90
4.5
-

90
6.3
-

Pay day
-

Total
180
12
-

149
10.5
-

Issue
date
12/04
12/04
12/02
11/13
11/12
11/10
11/07
11/06
11/03
10/30
10/28

Issue
price(p)
6.00
130.00
128.00
283.00
160.00
120.00
134.00
116.00
236.00
100.00
100.00

Sector
AIM
AIM
AIM
AIM
AIM
AIM
AIM
AIM
AIM

Stock
code
PCGE
TPOP
CHOC
VM/
MAB1
HAV
FEVR
QTX
NKTN
ENTU

Stock
PCG Entertainment PLC
People's Operator (The) PLC
United Cacao Ltd SEZC
Virgin Money Holdings (UK) PLC
Mortgage Advice Bureau (Holdings) PLC
Haversham Holdings PLC
Fevertree Drinks PLC
Quartix Holdings PLC
Nektan PLC
entu (UK) PLC
Ediston Property Investment Company PLC

Placing price. *Intoduction. When issued. Annual report/prospectus available at www.ft.com/ir

For a full explanation of all the other symbols please refer to London Share Service notes.

Close
price(p)
6.25
134.00
159.00
284.50
175.50
128.00
180.38
170.00
187.50
105.50
103.00

+/-0.38
-1.78
-5.00
0.25
0.30
0.00
-2.75
-4.80
1.30
2.58
0.00

High
6.70
145.00
162.30
291.00
178.38
130.00
184.00
181.50
252.00
112.00
104.10

Low
6.25
130.00
128.10
279.00
160.00
120.00
160.00
117.00
170.00
100.00
101.02

Mkt
Cap (m)
6441.8
10331.3
2930.4
125635.4
8864.4
0.0
20786.6
7937.6
3980.3
6920.8
9785.0

Monday 8 December 2014

23

FINANCIAL TIMES

MARKET DATA
FT500: THE WORLD'S LARGEST COMPANIES
Stock
Argentina ()
YPF
Australia (A$)
ANZ
BHPBilltn
CmwBkAu
CSL
NatAusBk
Telstra
Wesfarmers
Westpc
WoodsdPet
Woolworths
Belgium ()
AnBshInBv
Brazil (R$)
Ambev
BncBrasil
BncoDoBrasl
Bradesco
Cielo
ItauHldFin
Itausa
Petrobras
SntnderBras
Vale
Canada (C$)
BCE
BkMontrl
BkNvaS
Brookfield
CanadPcR
CanImp
CanNatRs
CanNatRy
Enbridge
GtWesLif
HuskyE
ImpOil
Manulife
Potash
RylBkC
Suncor En
ThmReut
TntoDom
TrnCan
ValeantPh
China (HK$)
AgricBkCh
Bk China
BkofComm
ChConstBk
ChinaCitic
ChinaLife
ChinaMBank
ChinaMob
ChinaPcIns
ChMinsheng
ChShenEgy
ChUncHK
In&CmBkCh
IndstrlBk RMB
Kweichow RMB
PetroChina
PingAnIns
SaicMotor RMB
ShgPdgBk RMB
Sinopec
Denmark (kr)
DanskeBk
MollerMrsk
NovoB
Finland ()
Nokia
SampoA
France ()
Airbus Grpe
AirLiquide
AXA
BNP Parib
ChristianDior
Cred Agr
Danone
EDF
Essilor Intl
GDF Suez
Kering
LOreal
LVMH

52 Week
High
Low

Price+/-Week
359.00 -37.50

561.00

275.00

Yld

P/E MCap m

-0.35
-1.58
0.14
2.95
-0.53
-0.07
-0.30
-0.22
-2.76
-0.91

35.07
39.79
83.92
88.40
36.00
5.80
46.69
35.99
44.23
38.92

28.84
29.26
72.14
63.77
31.50
4.92
40.33
30.00
33.72
29.96

5.48
4.15
4.85
1.39
6.11
5.19
4.65
5.45
5.98
4.56

94.25

-0.21

94.64

69.14

1.75 22.05 186202.88

16.00
27.23
31.99
35.90
42.79
33.03
10.20
11.45
7.50
21.88

-0.76
-2.47
-1.53
-2.35
-0.83
-1.17
-0.25
-0.73
-0.50
-1.41

17.85
38.19
35.98
41.30
47.10
38.74
11.78
23.50
8.50
36.20

14.99
18.61
21.54
27.13
30.98
23.91
7.73
11.28
5.50
21.40

1.89
4.99
3.79
0.96
3.01
1.38
1.91
4.92
3.60
5.29

52.24
80.27
66.20
56.88
218.93
102.33
37.14
77.61
58.46
33.40
23.63
52.22
23.01
40.42
80.40
35.75
45.29
54.25
56.01
165.49

-1.10
-3.59
-4.30
-0.61
-1.63
-4.16
-0.82
-3.62
5.96
-0.47
-0.55
2.64
0.24
1.11
-2.76
-0.36
-0.31
-3.37
1.56
-0.91

54.24
85.71
74.93
58.08
247.56
107.37
49.57
86.00
65.13
33.98
37.31
57.96
23.09
41.82
83.87
47.18
46.50
58.20
63.86
170.45

44.75
67.04
59.92
39.51
155.02
85.03
33.67
57.07
43.00
28.61
23.61
44.99
18.91
32.35
67.65
34.70
36.86
46.87
46.10
111.97

4.58 17.86 37801.62

3.79 12.32 45570.76
3.69 11.59 70519.07
1.29 12.49 31257.54
0.63 35.37 32851.28
3.80 13.18 35544.65
2.32 13.17 35504.14
1.22 22.11 55449.07
2.30 66.21 43315.24
3.62 13.04 29191.59
4.99 11.62 20341.75
0.98 10.83 38735.94
2.33 10.82 37424.12
3.81 23.07 29345.99
3.49 13.57 101455.74
2.59 17.52 45842.05
3.19 83.02 31853.66
3.35 13.28 87558.33
3.34 23.68 34699.98
- 101.81 48311.26

3.82
4.13
6.97
6.17
5.91
27.95
17.28
95.05
35.40
9.24
23.45
11.16
5.48
13.60
170.92
8.64
73.00
21.58
13.53
6.59

0.23
0.27
0.93
0.37
0.61
0.95
1.88
0.10
2.90
1.11
1.65
-0.52
0.30
2.42
14.24
-0.06
8.80
1.98
2.05
0.16

4.04
4.28
7.06
6.33
6.07
28.60
17.50
102.20
36.40
9.55
26.20
14.22
5.66
14.05
179.60
11.70
76.50
22.36
14.00
8.23

3.04
3.03
4.53
4.89
3.60
19.72
12.12
63.65
23.55
6.73
19.12
9.03
4.33
8.60
118.01
7.31
55.60
12.22
8.39
5.73

5.69
5.76
4.53
5.90
5.24
1.17
4.36
3.16
1.23
1.33
4.24
1.77
5.22
2.93
2.21
4.59
1.13
4.82
4.23
4.03

170.80
0.80
12050 -430.00
281.00
8.10

171.20
15390
286.20

119.10
10770
189.70

1.16 14.36 28476.41

2.49 16.13 4377.69
1.14 28.94 22876.71
1.60 27.73 31315.34
4.12 14.49 27176.91

0.11
-0.12

6.98
39.98

4.89
33.06

49.83
102.30
19.72
51.92
155.95
11.42
57.00
24.63
92.56
20.52
165.50
139.10
145.75

0.84
1.10
0.31
0.36
1.95
0.11
0.25
0.56
2.26
0.71
-0.60
1.90
1.25

57.33
102.75
20.64
61.82
157.45
12.22
57.44
29.90
92.60
21.19
167.70
139.10
147.20

41.05
83.45
16.43
43.28
126.10
8.75
48.33
21.21
70.51
16.02
136.95
114.55
121.00

1.49
2.53
4.17
2.85
1.52
3.03
2.58
5.15
1.03
7.42
2.30
1.82
2.16

12.36 73728.13
10.73 81403.49
15.14 110286.28
29.13 34006.94
14.69 63880.3
15.27 57757.05
29.12 40055.92
13.99 85511.2
13.01 24514.32
15.26 32454.99

20.34
5.76
19.45
10.48
20.89
8.82
8.18
7.19
13.96
-11.26

Price+/-Week

96539.89
29987.25
24589.26
29024.6
25855.9
35163.76
9221.83
32750.89
11154.65
27053.59

5.62 15148.4
5.86 44553.95
6.60 31481.97
5.58 191364.97
5.59 11346.61
22.88 26831.02
6.17 10234.27
14.60 250088.39
26.04 12674.41
5.09 8265.03
9.37 10281.46
18.04 34442.26
5.79 61359.92
5.81 35778.15
12.70 31737.23
10.05 23517.26
13.64 29474.35
9.07 32430.09
5.72 32829.06
10.35 21690.51

23.79 48082.22
21.08 43358.46
9.36 58750.5
-63.96 79424.11
18.26 34215.42
13.89 36164.34
31.15 42030.13
12.78 56281.7
19.79 23951.69
-5.66 59557.75
24.35 25694.03
28.16 102847.61
21.44 90988.94

FT 500: TOP 20
Week
change change %
226.80
10290.2
5.50
24.3
2.42
21.6
2.05
17.9
0.93
15.4
7.54
14.4
8.80
13.7
1.11
13.7
1.88
12.2
1031.00
11.7
0.61
11.5
33.18
10.8
1.98
10.1
14.24
9.1
372.00
8.9
2.90
8.9
344.00
8.7
595.00
8.3
1.08
8.2
646.00
8.2

Month
change %
4.90
46.16
27.70
34.36
19.97
12.34
16.43
20.31
19.01
23.20
17.26
6.67
22.82
12.90
12.74
22.70
14.17
13.85
4.57
17.92

INTEREST RATES: OFFICIAL

Rate
Fed Funds
Prime
Discount
Repo
Repo
O'night Call
Libor Target

Current
0.00-0.08
3.25
0.75
0.05
0.50
0.00-0.03
0.00-0.25

P/E MCap m

8.39
78.82
43.24
68.29
52.59
32.44
29.51
40.57
174.25
39.98
17.26

5.52
1.78
2.12
3.63
3.66
2.52
1.69
5.59
4.30
3.96
4.77

24.72 47608.72
24.62 31166.74
14.02 27410.14
24.98 123908.61
18.85 45596.85
8.72 37124.93
21.66 25727.53
10.48 126416.72
18.56 25335.89
9.92 34158.17
-13.01 34401.52

115.05
64.27
91.31
74.74
136.85
55.10
22.66
10.07
21.55
12.23
34.23
66.67
137.05
141.10
24.75
50.08
80.17
147.35

3.77 10.24 78029.6

3.59 13.92 83918.01
1.72 27.68 122993.25
2.78 10.52 68363.96
1.05 16.69 43495.6
3.18 10.10 92086.92
1.94-234.81 45524.25
2.70 27.07 76445.07
2.93 15.63 40081.44
3.83 -56.91 38041.17
0.72 21.66 28686.91
1.12 12.69 25432.97
1.93 25.48 35145.47
4.32 8.09 34741.2
2.45 -7.25 21098.14
1.28 20.95 86018.4
3.23 16.23 101735.82
1.60 12.69 67312.45

34.65
21.50
111.80
9.35
13.72
10.40
42.95
117.60
112.80
92.35
38.70
83.40
89.60

0.89
3.36
2.28
2.25
0.65
4.81
3.92
1.81
2.22
3.84
2.66
0.20

30.45 69304.18
13.76 37372.66
8.19 41623.13
9.06 45620.4
32.23 4279.17
7.61 62091.22
19.85 26313.22
16.10 31594.79
49.35 26823.43
26.95 51865.57
17.74 42772.4
10.13 41808.45
41.92 143685.07

281.90
616.80
537.20
755.00
188.72
1440
308.45
264.15
793.10
145.51
552.55
1991
332.10
474.70

0.90
0.70
1.36
1.21
2.46
1.52
1.30
2.59
0.96
0.91
0.29
1.23
0.36
1.33

37.52
27.15
46.46
21.96
18.41
20.46
36.41
12.17
12.52
15.27
91.36
24.37
9.04
17.57

Stock

MitsubishiEle 1499.5 98.50

Mitsui
1636 -19.00
MitsuiFud
3395
4.50
MitUFJFin
696.90 26.60
Mizuho Fin
205.80
4.10
Murata Mfg
13495 675.00
NipponTT
6275 -85.00
Nissan Mt
1135 33.00
NpnStlSmMtl 319.70 11.50
NTTDCMo
1852 18.00
Panasonic
1595.5 82.50
Seven & I
4400
7.00
ShnEtsuCh
8494 646.00
Softbank
7785 -149.00
SumitomoF
4469 41.50
Takeda Ph
5050 109.50
TokioMarine 4092.5 300.50
Toyota
7742 595.00
Malaysia (RM)
Maybank
8.89 -0.66
Mexico (Mex$)
AmerMvl
16.12 -0.28
FEMSA UBD 128.50 -4.26
GrupoMexico
44.47 -1.09
WalMrtMex
29.93
0.18
Netherlands ()
ArcelorMit
9.90
0.04
ASML Hld
88.90
3.97
Heineken
63.21 -0.04
ING
11.74 -0.04
Philips
24.25 -0.01
Unilever
33.49
0.74
Norway (Kr)
DNB
116.50
0.00
Statoil
128.90 -3.60
Telenor
154.20
6.10
Qatar (QR)
Inds Qatar
183.90 -7.10
QatarNtBk
209.50 -19.50
Russia (RUB)
Gzprm neft
140.50 -2.36
Lukoil
2391.1 99.40
Magnit
11525 -270.00
Novatek
440.20 -19.80
Nrlsk Nckl
9851 1031
Rosneft
221.95 -11.79
SbankR
68.60 -3.65
Surgnfgz
29.85
0.65
Saudi Arabia (SR)
AlRajhi Bk
61.25
0.50
SaudiBasic
94.25 -3.75
SaudiTelec
68.00
1.25
Singapore (S$)
DBS
19.68 -0.02
Jard Str
35.40 -0.38
JardnMt
61.70 -0.30
OCBC
10.33 -0.16
SingTel
3.90
0.00
UOB
24.31
0.48
South Africa (R)
MTN Grp
220.55
2.38
Naspers N
1469.81 35.85
Sasol
427.50 -34.45
South Korea (KRW)
HyundaiMot 188000 7500
HyundMobis 255500 6500
KoreaElePwr
46100 1600
Naver
736000-9000.00
Posco
305000 4000
SK Hynix
48350 500.00
SmsungEl
1302000 38000
Spain ()
BBVA
8.66
0.02
BcoSantdr
7.38
0.13
CaixaBnk
4.59
0.15
GasNatur
22.83
0.05
Iberdrola
5.90 -0.04
Inditex
23.58
0.17
Repsol
18.31
0.26
Telefonica
13.37
0.49
Sweden (SKr)
AtlasCpcoB
199.50
1.40
Ericsson
94.00
0.10
H&M
320.90
1.50
Investor
284.10
4.00
Nordea Bk
94.90
1.75
SEB
100.30
1.80
SvnskaHn
366.20
2.00
Swedbank
195.30 -0.30

23765.34
36558.72
28688.53
28271.99
6730.45
38243.75
50310.8
50518.37
50048.66
38321.22
27504.48
81652.98
21625.93
23076.49

6050
9250
1980

2.51 14.48 23371.56

0.38 21.07 26495.38
2.34 19.75 23276.74

135.60

2.06 18.48 54826.54

2.98
15.31
14.40
1.63
34.74
12.77
5.01

2.60
5.76
2.05
1.57
1.15
1.82
-

13.35
10.83
17.65
-9.67
37.14
12.49
-2.73

45767.36
69268.55
33273.64
49143.32
26402.04
18697.9
42134.84

1062
3328
2889
10655
4223
7105
16105
30950
2380
660.00
3239
2992
5000
36095
1767
2151.5

4.16
1.38
3.19
0.60
1.50
1.15
0.96
0.91
1.10
0.99
1.95
2.34
1.68
0.20
2.57
0.39

39.03
13.67
16.39
12.02
17.10
16.38
25.01
53.87
15.11
42.05
10.21
15.13
15.27
32.01
8.79
46.03

31994.69
28863.58
42842.14
29038.34
43193.15
28843.8
41662.2
37776.43
29218.44
37082.48
55768.39
59827.86
56182.58
28043.55
30573.82
29968.86

52 Week
High
Low

Price+/-Week

Yld

P/E MCap m

0.39
3.34
0.55
2.20
2.89
0.82
2.44
2.35
1.33
2.75
0.74
1.42
1.00
0.44
2.38
3.03
1.61
1.92

25.68 26518.37
7.72 24207.04
34.52 27722.17
8.90 81325.25
11.76 41373.12
25.46 25037.53
11.97 58747.07
10.24 42260.1
11.44 25023.1
17.02 66581.4
66.77 32235.28
20.11 32124.07
28.92 30229.5
12.85 76985.06
7.76 52048.05
41.90 32848.12
12.52 25938.13
11.82 217947.82

1511.5
1820
3830
698.00
240.00
13615
7120
1135
356.00
1934.5
1602
4592.5
8497
9320
5470
5170
4094
7796

1083
1307
2854.5
519.00
178.10
8192
5051
824.00
243.30
1515
1030
3611
5267
6655
3800
4337.5
2834
5205

10.20

8.86

17.64
135.75
49.59
35.75

12.39
108.90
36.77
27.71

1.37
0.80
2.32
0.89

17.00
28.00
12.72
19.32

78259.41
32176.73
24226.84
36711.35

13.40
88.96
64.00
11.95
28.31
34.05

9.01
57.51
44.14
8.93
20.69
26.97

1.58
0.58
1.22
3.07

-16.70
28.97
26.44
12.90
33.03
18.35

20280.6
47819.22
44772.11
55699.65
27876.41
124572.2

126.90
195.80
158.20

98.10
126.50
123.90

1.86 8.23 26571.69

5.85 8.43 57555.27
4.85 32.88 32597.5

202.90
237.00

164.00
160.00

5.79 18.00 30553.21

3.24 14.59 40256.3

154.21
2593.8
12498
501.30
10035
259.00
102.92
31.68

114.00
1715
6565.3
303.60
4966
214.39
65.33
24.13

1.65 62816.48
6.30 38409.48
1.54 18.66 20582.05
1.31 8.85 25242.33
9.10 40.40 29440.53
7.47 3.11 44424.28
2.91 27967.19
2.35 2.02 20140.17

79.50
136.50
76.50

57.25
85.50
52.00

1.58 14.97 26517.27

5.65 11.54 75330.69
2.85 11.60 36233.34

20.02
38.10
64.60
10.53
4.08
24.36

15.65
30.06
49.34
9.05
3.42
19.40

2.94
0.66
2.07
3.33
4.30
2.87

263.44
1603.97
652.99

190.01
959.00
405.01

254000
323500
50200
880000
363500
52400
1495000

149000
226000
30400
643000
268500
34400
1078000

0.82
0.67
0.17
0.08
2.38
0.89

4.64 37175.8
10.66 21912.8
10.00 25783.8
51.43 19686.77
21.80 23871.79
10.38 31082.6
7.96 153070.94

9.99
7.96
5.00
24.45
5.97
24.20
21.07
13.39

8.14
6.02
3.45
17.02
4.37
19.29
15.82
10.76

0.72
6.82
0.85
3.07
2.61
1.35
4.12
4.38

-59.80 65727.17
16.31 114205.45
49.61 31881.61
14.79 28093.28
17.74 45485.21
31.04 90371.06
19.13 28867.35
14.16 74823.49

204.30
95.15
322.70
284.30
101.00
100.40
366.90
196.40

154.80
75.05
261.00
203.50
80.25
77.10
287.20
163.80

2.78
3.22
3.01
1.99
4.16
4.02
3.17
5.22

20.48
22.11
26.94
4.14
12.91
12.34
15.48
12.96

9.04 12.02

7.47
13.74
15.65
9.70
17.14
11.64

23437

36898.01
39651.63
42620.43
31133.4
47025.9
29442.29

3.88 15.54 35923.06

0.24 53.57 54073.7
4.12 9.22 24516.47

10296.56
37442.54
61995.94
17115.33
50741.31
28787.61
29628.6
24599.64

Last
0.08
3.25
0.75
0.15
0.50
0.03
0.00-0.75

Mnth Ago
0.00-0.25
3.25
0.75
0.05
0.50
0.00-0.10
0.00-0.25

Year Ago
0.00-0.25
3.25
0.75
0.5
0.50
0.00-0.10
0.00-0.25

Day
0.002
-0.004
-0.001

Change
Week
0.009
-0.055
-0.003

Month
0.000
0.000
-0.001
-0.005
0.000
0.000
0.000
0.000
0.000

One
month
0.15720
0.01143
0.50413
-0.00800
0.07500
0.02200
0.50500
0.15000
-0.06500

Three
month
0.23535
0.05643
0.55275
0.00100
0.10929
0.08200
0.57500
0.19000
0.02500

Six
month
0.32990
0.14714
0.67625
0.05140
0.14514
0.17700
0.72500
0.26000
0.12500

One
year
0.57500
0.29786
0.97338
0.15140
0.27043
0.32800

COMMODITIES
Energy
Price*
Crude Oil
Dec
65.67
Brent Crude Oil
68.79
RBOB Gasoline
Dec
1.77
Heating Oil
Dec
2.12
Natural Gas
Dec
3.80
Ethanol
Jan
1.73
Uranium
Dec
38.25
Carbon Emissions
Diesel
Dec
Unleaded
Jan
Base Metals ( LME 3 Months)
Aluminium
1980.75
Alluminum Alloy
2010.00
Copper
6440.00
Lead
2030.25
Nickel
16734.00
Tin
20210.00
Zinc
2234.25
Precious Metals (PM London Fix)
Gold
1194.00
Silver (US cents)
1633.00
Platinum
1231.00
Palladium
806.00
Bulk Commodities
Iron Ore (Platts)
71.25
Iron Ore (The Steel Index)
70.90
GlobalCOAL RB Index
65.70
Baltic Dry Index
982.00

Day
change change %
-2.40
-0.66
-31.50
-1.50
0.40
0.98
0.90
1.91
0.00
0.00
-0.20
-1.82
0.00
0.00
0.50
0.24
-4.57
-2.00
-0.30
-0.77
-4.30
-1.36
-6.00
-1.38
-0.74
-2.03
0.21
0.36
0.00
0.00
0.00
0.00
0.00
0.00
-0.63
-1.62
0.00
0.00
0.00
0.00

Week
change change %
-1394.60
-79.5
-2289.55
-52.5
-5.80
-12.4
-5.55
-10.4
-3.06
-10.3
-1.22
-10.2
-0.70
-8.8
-19.50
-8.5
-20.81
-8.5
-3.25
-7.8
-26.01
-7.7
-34.45
-7.5
-2.76
-7.2
-4.47
-7.0
-1.62
-7.0
-0.66
-6.9
-2.64
-6.9
-2.75
-6.7
-0.69
-6.6
-1.05
-6.3

Month
change %
-78.14
1.34
-12.18
-8.30
2.80
-10.32
2.04
-8.52
-3.14
-4.86
5.43
-19.20
-11.65
1.57
-9.50
-8.35
0.71
-28.61
1.59
-2.45

www.ft.com/commodities

Change
-1.09
-0.67
-0.03
-0.01
0.14
-0.03
0.00
-15.50
-20.00
-30.50
-7.75
-381.00
-235.00
-0.75
-15.00
-9.00
-8.00
8.00
-0.25
-0.20
0.20
-37.00

Agricultural & Cattle Futures

Corn
Wheat
Soybeans
Soybeans meal
Cocoa (ICE Liffe)X
Cocoa (ICE US)
Coffee(Robusta)X
Coffee (Arabica)
White SugarX
Sugar 11
Cotton
Orange Juice
Palm Oil
Live Cattle
Feeder Cattle
Lean Hogs

S&P GSCI Spt

DJ UBS Spot
R/J CRB TR
Rogers RICIX TR
M Lynch MLCX Ex. Rtn
UBS Bberg CMCI TR
LEBA EUA Carbon
LEBA CER Carbon
LEBA UK Power

Mar
Jan
Jan
Dec
Jan
Feb

Price*
396.00
593.50
1038.25
367.40
1931.00
2928.00
2038.00
178.95
428.20
15.14
59.65
146.05
628.00
164.03
234.85
85.48

Change
20.50
-6.50
27.50
-18.60
26.00
30.00
-10.00
-1.80
-0.05
-0.83
0.05
-0.25
-2.40
-1.10
-2.30

Dec 04
475.83
112.20
252.95
3006.67
350.84
17.58
6.65
0.04
1760.00

% Chg
Month
-7.76
-4.50
-5.66
-7.47
-5.59
-6.34
-55.56
-39.81

% Chg
Year
-9.20
-21.71
-13.82
15.85
-66.67
3.83

Mar
Mar
Jan
Jan
Mar
Mar
Jan
Dec

Sources: NYMEX, ECX/ICE, CBOT, X ICE Liffe, ICE Futures, CME, LME/London Metal Exchange.* Latest prices, $
unless otherwise stated.

Price+/-Week

52 Week
High
Low

TeliaSonera
53.15 -0.05 53.85 43.98
Volvo
85.75
4.15 105.70 71.00
Switzerland (SFr)
ABB
21.28 -0.41 24.80 18.56
CredSuisse
26.26
0.44 30.21 23.12
Holcim
74.35
3.00 86.05 59.50
Nestle
72.50 -0.05 73.30 62.95
Novartis
93.80
0.30 94.25 67.45
Richemont
91.75
0.90 94.75 72.65
Roche
294.60
5.20 295.80 231.20
SwatchGpI
471.70 -5.80 597.00 417.10
Swiss Re
83.95
1.35 86.55 69.25
Swisscom
585.00 -1.50 587.50 447.60
Syngent
314.20 -4.10 364.40 273.20
UBS
17.15
0.58 19.10 13.95
Zurich Fin
307.20
4.40 307.80 240.00
Taiwan (NT$)
ChnghwTl
92.80
0.20 99.00 86.20
HonHaiPrc
93.20 -3.90 113.00 73.50
MediaTek
458.00 -7.00 545.00 384.00
TaiwanPet
68.30 -2.00 85.30 66.70
TaiwanSem
137.50 -2.50 142.00 94.90
Thailand (THB)
PTT Explor
373.00 -17.00 398.00 259.00
United Arab Emirates (Dhs)
EmiratesTele
11.50
0.10 12.60 11.10
United Kingdom (p)
AngloAmer
1268 -53.50 1678.5
1221
AscBrFd
3284 81.00
3293
2237
AstraZen
4739.5 -40.50
5750 3367.07
Aviva
506.00 -2.00 571.50 411.18
BAE Sys
481.70
0.60 486.60 374.10
Barclays
249.45
4.30 298.13 201.75
BG
907.50
7.30
1420 862.68
BP
424.50
4.30 526.80 405.35
BrAmTob
3744.5 -50.00 3806.5
2871
BSkyB
850.50 -34.50 954.00 782.50
BT
420.00
9.80 451.00 350.30
Centrica
286.00
1.40 349.80 280.50
Compass
1104 14.00 1115.63 924.41
Diageo
1971 -10.00 2043.5 950.00
GlaxoSmh
1470.5 -14.50
1709 1200.67
Glencore
316.50 -3.90 379.45 295.80
HSBC
643.10
6.10 737.00 436.10
ImpTob
2878 -82.00
2973
2156
LlydsBkg
80.89
0.54 86.87 70.02
Natl Grid
930.00
0.00 965.00 742.50
Prudential
1550.5
2.50 1573.5
1192
RBS
403.50
8.20 403.90 291.60
ReckittB
5255
0.00
5540 3235.75
Reed Els
1108 -5.00
1123 851.53
RioTinto
2898 -94.50 3680.56 2814.5
RollsRoyce
900.00 57.50
1294 777.00
RylDShlA
2149 16.50
2864 1992.64
SABMill
3422 -142.00
3857 2650.21
Shire
4602 45.00
5470
2620
SSE
1679 39.00
1858 1296.72
StandCh
973.00 35.90
1434 898.20
Tesco
189.60
3.15 341.58 164.00
Vodafone
230.60 -3.35 442.06 179.10
WPP
1367 27.00
1565
1091
United States of America ($)
3M
162.27
2.18 162.92 123.61
AbbottLb
45.30
0.79 45.95 35.65
Abbvie
69.71
0.51 70.17 45.50
Accenture
86.19 -0.14 87.08 73.79
Ace
116.07
1.73 116.92 92.00
Actavis
266.06 -4.55 272.75 156.40
Adobe
72.40 -1.28 74.69 53.93
AEP
57.76
0.21 59.84 45.24
Aetna
90.62
3.38 90.67 64.68
Aflac
59.51 -0.22 67.62 54.99
AirProd
146.73
2.90 147.53 102.73
Alexion
198.61
3.71 203.30 120.87
Allergan
213.35 -0.54 214.66 95.34
Allstate
68.68
0.53 68.98 49.18
Altria
51.07
0.81 51.25 33.80
Amazon
312.63 -26.01 408.06 284.00
AmerAir
51.01
2.48 51.75 23.45
AmerExpr
92.65
0.23 96.24 78.41
AmerIntGrp
55.33
0.53 56.56 46.80
Ameriprise
135.15
3.38 135.48 100.94
AmerTower
100.54 -4.47 105.20 75.65
Amgen
169.24
3.93 169.49 108.20
Anadarko
79.07 -0.08 113.51 73.60
Aon Cp
95.10
2.61 95.81 76.49
Apache
61.64 -2.45 104.57 60.12
AppldMat
25.04
0.99 25.09 16.40
Apple
115.00 -3.93 119.75 70.51
ArcherDan
53.25
0.57 53.91 37.92

Yld

P/E MCap m

3.99 16.59 30439.72

3.53 31.16 16454.63
2.62
1.76
1.94
2.76
0.10
2.66
1.04
4.88
2.41
2.09
1.42
5.87

21.27 49529.56
72.03 42995.81
20.27 24757.77
24.21 236520.42
24.25 232077.53
24.41 48985.88
23.50 211695.79
14.03 14879.03
7.58 29382.41
17.50 30995.33
19.99 29927.62
19.12 68469.12
11.81 47002.47

4.80
1.70
2.58
2.88
1.72

17.65 23140.93
12.06 44319.86
15.62 23135.83
22.97 20914.34
16.14 114607.25

1.91 10.98 32390.35

5.90 11.44 24753.41
3.90 278.19 27613.06
0.99 34.05 40538.53
3.68 94.16 93323.12
2.96 12.91 23257.5
4.17 83.22 23689.58
2.61 3.38 63874.4
2.04 17.29 48266.07
5.62 13.88 120723.49
3.80 19.55 111997.52
3.64 10.60 23005.52
2.36 17.13 53332.58
5.94 22.05 22390.94
2.31 42.14 28707.94
2.49 21.29 77253.15
5.44 17.17 111194.46
3.05 19.19 64982.58
4.66 12.49 192439.41
4.04 40.22 42949.92
- 245.87 90023.31
4.52 16.29 54593.02
2.17 18.60 62046.89
-7.10 39736.49
2.61 20.30 58875.26
2.22 23.94 36087.66
3.92 14.89 63888.27
2.44 7.45 26472.3
5.46 13.68 131018.44
1.89 24.68 86085.55
0.28 24.02 42305.68
5.16 81.26 25525.53
5.06 9.57 37487.93
7.78 17.96 24014.48
6.05 63.53 95276.15
2.50 18.18 28082.86
1.90 23.15 103985.67
1.70 36.81 68212.31
2.26 31.42 111066.53
2.03 21.61 67974.92
2.12 12.50 38504.78
- -52.05 70522.16
- 160.16 36108.69
3.33 16.39 28258.53
0.93 15.71 31871.05
2.39 9.70 26814.41
1.98 33.24 31357.79
86.02 39381.76
0.09 51.69 63556.67
1.53 11.54 28806.68
3.69 24.36 100938.33
- -696.56 144749.71
0.19 96.50 36587.61
1.02 17.79 95862.78
0.83 9.51 77457.15
1.57 18.62 24939.51
1.25 57.02 39860.38
1.31 27.69 128735.79
1.09 -19.51 40045.03
0.86 23.25 27116.5
1.40-277.53 23206.36
1.48 33.33 30508.59
1.52 18.53 674456.6
1.64 19.00 34373.98

Stock

52 Week
High
Low

Price+/-Week

AT&T
AutomData
BakerHu
BankAm
Baxter
BB & T
BerkshHat
Biogen
BkNYMeln
BlackRock
Boeing
BrisMySq
CapOne
CardinalHlth
Carnival
Caterpillar
CBS
Celgene
Centurylink
CharlesSch
ChevrnTx
Cigna
Cisco
Citigroup
CME Grp
CntnentlRes
Coca-Cola
Cognizant
ColgtPlm
Comcast
ConocPhil
Corning
Costco
Covidien
CrownCstl
CSX
Cummins
CVS
Danaher
Deere
Delta
DevonEngy
DirectTV
DiscFinServ
Disney
DominRes
DowChem
DukeEner
DuPont
Eaton
eBay
Ecolab
EMC
Emerson
EOG Res
Exelon
ExpScripts
ExxonMb
Facebook
Fedex
FordMtr
Franklin
FreeportMc
GenDyn
GenElectric
GenMills
GenMotors
GileadSci
GoldmSchs
Google
Halliburton
HCA Hold
Hess
Hew-Pack
HiltonWwde
HomeDep
Honywell
IBM
IllinoisTool
Intel
Intuit
John&John
JohnsonCn
JPMrgnCh
Kimb-Clark
KinderM
Kraft
Kroger
LasVegasSd
LibertyGbl
Lilly (E)
Lockheed

33.94 -1.44 37.48 31.74

85.82
0.18 86.54 70.50
57.02
0.02 75.64 47.51
17.68
0.64 18.03 14.37
74.22
1.22 77.31 65.53
38.78
1.19 41.04 34.36
225640 2575 225981163038.88
340.87 33.18 358.89 270.27
41.11
1.08 41.51 30.82
364.40
5.32 364.96 284.78
132.21 -2.15 144.57 116.32
60.65
1.60 60.87 46.30
82.94 -0.26 85.39 67.86
82.23
0.04 82.57 62.55
44.62
0.46 44.74 33.11
98.78 -1.82 111.46 83.70
55.09
0.21 68.10 48.83
114.13
0.44 116.65 66.85
39.68 -1.09 45.67 27.93
29.97
1.65 31.00 23.35
110.87
2.00 135.10 106.65
104.71
1.82 105.07 73.47
27.50 -0.14 27.99 20.22
56.08
2.11 56.49 45.18
88.74
4.10 88.88 66.44
38.23 -2.75 80.91 37.43
43.53 -1.30 44.87 36.89
53.16 -0.84 54.73 41.51
69.37 -0.22 70.11 59.75
56.34 -0.70 57.49 47.74
67.85
1.78 87.09 62.74
21.34
0.32 22.37 16.55
143.25
1.13 143.49 109.50
103.68
2.68 103.83 65.49
79.27 -3.82 84.97 68.44
36.95
0.46 37.99 25.84
150.86
5.24 161.03 122.64
90.70 -0.66 91.42 64.95
84.88
1.32 84.99 70.12
89.73
3.11 94.89 78.88
47.28
0.61 47.63 26.40
59.90
0.93 80.63 53.34
85.02 -2.69 89.46 64.79
64.85 -0.70 66.75 51.63
93.76
1.25 93.98 68.80
72.15 -0.40 74.59 63.00
50.16
1.49 54.97 38.42
80.73 -0.17 83.90 67.05
73.07
1.67 73.53 59.35
69.41
1.58 79.98 57.11
54.81 -0.07 59.70 46.34
109.04
0.09 118.46 97.65
30.33 -0.02 30.66 23.15
64.88
1.13 70.66 57.76
90.75
4.03 118.89 78.01
35.59 -0.58 37.90 26.45
84.58
1.43 84.74 64.64
93.82
3.28 104.76 86.91
76.36 -1.34 81.16 47.71
182.03
3.85 182.42 128.17
15.70 -0.03 18.12 13.26
58.30
1.44 58.87 49.12
26.01 -0.84 39.32 25.45
145.15 -0.21 145.92 89.10
26.01 -0.48 28.09 23.69
53.12
0.37 55.64 46.70
33.93
0.50 41.85 28.82
104.59
4.27 116.83 63.50
195.45
7.04 196.93 151.65
528.08 -21.00 614.44 511.00
40.37 -1.83 74.33 40.02
74.00
4.31 74.74 45.07
75.72
2.79 104.50 71.20
39.55
0.49 39.65 26.29
26.42
0.20 26.46 20.55
99.64
0.24 99.68 73.96
99.69
0.62 100.16 82.89
163.27
1.10 199.21 159.80
96.69
1.76 97.17 76.25
37.67
0.42 37.90 23.50
93.68 -0.19 95.42 69.02
108.51
0.26 109.49 86.09
49.60 -0.40 52.50 38.60
62.70
2.54 63.06 52.97
114.04 -2.55 116.72 98.27
41.12 -0.23 42.49 30.81
60.27
0.10 61.10 50.54
60.98
1.14 61.33 35.13
59.22 -4.47 88.28 57.65
49.28 -2.72 90.93 37.98
71.85
3.73 72.44 48.88
189.87 -1.69 192.94 136.01

Bid
yield

Mth's Spread
chge
vs
yield
US

Dec 05
High Yield US$
MGM Resorts Intl

S*

Ratings
M*

F*

Bid
price

01/17

7.63

B+

B3

BB

108.40

3.47

0.01

0.45

2.82

High Yield Euro

Kazkommerts Intl BV

02/17

6.88

Caa1

93.55

0.00

0.00

Emerging US$
Mexico
Peru
Brazil
Brazil
Peru
Poland
Turkey
Colombia
Turkey

03/15
05/16
01/17
01/18
03/19
07/19
11/19
02/20
03/23

6.63
8.38
6.00
8.00
7.13
6.38
7.50
11.75
3.25

BBB+
BBB+
BBBBBBBBB+
ABBB
-

A3
A3
Baa2
Baa2
A3
A2
Baa3
Baa2
Baa3

BBB+
BBB+
BBB
BBB
BBB+
ABBBBBB
BBB-

101.11
121.00
108.61
109.75
120.20
118.27
125.38
142.25
84.48

1.80
1.23
1.78
4.55
2.20
2.19
3.47
2.96
5.62

0.19
0.00
-0.02
0.18
-0.04
-0.02
0.00
0.00
0.12

0.67
0.00
-0.07
0.15
-0.07
0.00
0.00
-0.06
-0.06

1.16
0.59
1.14
2.86
0.51
0.50
1.78
1.28
3.30

Red
date Coupon

Index

Month's
change

Year
change

Return
1 month

Return
1 year

Markit IBoxx
ABF Pan-Asia unhedged
Corporates( )
Corporates($)
Corporates()
Eurozone Sov()
Gilts( )
Global Inflation-Lkd
Markit iBoxx Non-Gilts
Overall ($)
Overall( )
Overall()
Treasuries ($)

180.73
289.69
250.59
211.82
219.08
280.34
254.03
289.84
223.62
280.56
216.59
214.01

0.19
0.30
0.19
0.03
0.32
0.44
0.47
0.30
0.14
0.40
0.22
0.12

-0.05
2.27
0.37
0.52
1.26
3.22
1.17
2.27
0.56
2.92
0.97
0.69

5.67
10.79
6.98
7.78
11.72
12.54
5.32
10.80
5.90
11.99
10.12
5.59

-0.32
2.01
0.37
0.72
1.72
2.77
0.58
1.99
0.56
2.52
1.32
0.69

4.90
9.87
6.98
7.40
11.09
11.14
4.64
9.78
5.90
10.71
9.53
5.59

Emerging Euro
Brazil
02/15
7.38
BBBBaa2
BBB 111.75
0.73
0.00
0.00
0.08
Mexico
07/17
4.25
BBB+
A3
BBB+ 111.13
1.50
0.00
0.00
0.85
Mexico
02/20
5.50
BBB+
BBB+ 111.19
3.13
0.02
0.02
1.44
Bulgaria
09/25
5.75
BBBBBB- 123.14
3.20
0.00
-0.23
0.88
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poors, M - Moodys, F - Fitch.

FTSE
Sterling Corporate ()
Euro Corporate ()
Euro Emerging Mkts ()
Eurozone Govt Bond

112.64
109.31
978.12
113.63

-0.15
-0.08
-2.88
0.11

1.37
0.03
2.56
1.31

5.17
5.33
-1.36
9.02

Index

Day's
change

Week's
change

Month's
change

Series
high

Series
low

320.62
58.08
61.65

2.52
1.48
-0.25

-44.44
-8.45
0.42

-0.44
-0.01
-2.38

419.37
80.45
79.33

312.46
56.15
58.50

Markit iTraxx
Crossover 5Y
Europe 5Y
Japan 5Y

Markit CDX
Emerging Markets 5Y
291.38
-2.12
34.24
21.54
293.50
238.47
Nth Amer High Yld 5Y
332.42
-5.76
-11.17
4.36
398.34
328.06
Nth Amer Inv Grade 5Y
61.48
-0.73
-3.45
1.16
73.81
60.32
Nth AmerHiVol 5Y
0.00
0.00
0.00
0.00
181.74
100.00
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names.

BONDS: INDEX-LINKED
Price
Month
Value
No of
Yield
Apr 12
Apr 12
Prev
return
stock
Market
stocks
Can 4.25%' 21
129.66
0.005
0.033
-0.45
5.18
67246.09
7
Fr 2.25%' 20
115.54
-0.464
-0.460
-0.21
19.98 205566.13
14
Swe 0.25%' 22
104.79
-0.269
-0.318
-1.05
28.26 245373.08
6
UK 2.5%' 16
331.59
-1.558
-1.521
0.00
7.90 473415.06
24
UK 2.5%' 24
348.00
-0.879
-0.848
0.10
6.82 473415.06
24
UK 2%' 35
231.49
-0.701
-0.680
0.42
9.08 473415.06
24
US 0.625%' 21
102.41
0.258
0.274
-0.61
35.84 1067665.90
35
US 3.625%' 28
137.56
0.679
0.274
-0.77
16.78 1067665.90
35
Representative stocks from each major market Source: Merill Lynch Global Bond Indices Local currencies. Total market
value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
amount.

BONDS: TEN YEAR GOVT SPREADS

Bid
Yield

Spread Spread
vs
vs
Bund T-Bonds

Australia
3.12
2.34
0.81 Italy
Austria
0.93
0.14 -1.39 Japan
Belgium
1.21
0.43 -1.10 Netherlands
Canada
2.08
1.29 -0.24 Norway
Denmark
1.05
0.27 -1.26 Portugal
Finland
1.00
0.22 -1.31 Spain
France
1.03
0.25 -1.28 Switzerland
Germany
0.78
0.00 -1.53 United Kingdom
Greece
7.45
6.67
5.14 United States
Ireland
1.38
0.60 -0.94
Data provided by SIX Financial Information & Tullett Prebon Information

Bid
Yield
1.96
0.39
0.90
1.86
2.71
1.82
0.38
2.02
2.32

Spread Spread
vs
vs
Bund T-Bonds
1.17
-0.39
0.11
1.07
1.93
1.04
-0.40
1.24
1.53

-0.36
-1.92
-1.42
-0.46
0.40
-0.49
-1.93
-0.29
0.00

BONDS: BENCHMARK GOVERNMENT

Red
Bid
Date Coupon
Price
07/17
4.25 104.90
04/25
3.25 101.11
Austria
06/16
1.75 101.86
10/24
1.65 106.78
Belgium
12/17
1.00 102.09
12/24
1.10 98.93
Canada
11/16
1.00 99.99
06/25
2.25 101.64
Denmark
11/16
2.50 104.80
11/25
1.75 107.17
Finland
04/17
1.88 104.27
07/25
4.00 129.89
France
11/16
0.25 100.45
11/19
0.50 101.07
11/24
1.75 106.74
05/45
3.25 125.64
Germany
06/16
0.25 100.38
10/19
0.25 100.49
08/24
1.00 102.01
07/44
2.50 120.31
Greece
07/17
3.38 93.85
02/25
2.00 71.91
Ireland
10/17
5.50 114.93
03/24
3.40 117.46
Italy
12/16
1.50 102.05
12/19
1.05 100.42
12/24
2.50 104.99
09/44
4.75 128.17
Japan
11/16
0.10 100.20
12/19
0.08 99.96
09/24
0.50 100.99
09/44
1.70 105.87
Netherlands
04/17
0.50 101.14
07/24
2.00 110.11
New Zealand
12/17
6.00 106.68
04/23
5.50 111.61
Norway
05/17
4.25 107.25
03/24
3.00 109.64
Portugal
02/16
6.40 107.07
02/24
5.65 123.58
Spain
10/17
0.50 99.67
10/24
2.75 108.31
Sweden
08/17
3.75 109.91
05/25
2.50 113.73
Switzerland
10/16
2.00 103.93
07/25
1.50 111.61
United Kingdom
01/17
1.75 102.26
07/20
2.00 102.36
09/24
2.75 106.40
01/45
3.50 115.18
United States
11/16
0.50 99.72
11/19
1.50 99.12
11/24
2.25 99.41
11/44
3.00 100.32
Data provided by SIX Financial Information & Tullett Prebon Information

P/E MCap m

Stock

5.21 10.80 176046.78

2.15 28.03 41370.89
1.05 20.05 24666.79
0.44 46.84 185920.45
2.62 23.07 40225.62
2.33 14.74 27933.17
18.62 193250.05
33.55 80498.29
1.50 17.39 46277.93
1.97 19.60 60203.98
1.95 19.69 94256.54
2.28 38.73 100604.79
1.39 11.61 46555.78
1.51 27.01 27214.97
2.10 26.33 26442.82
2.43 16.60 59801.3
0.89 22.18 26466.57
62.44 91156.11
5.24 28.79 22645.59
0.77 33.26 39133.89
3.59 10.62 209591.35
0.04 14.80 27389.9
2.62 19.14 140623.67
0.07 19.58 169893.7
2.02 30.56 29798.09
14.78 14229.73
2.64 25.12 190666.31
24.15 32367.02
1.94 31.63 63223.7
1.49 18.45 121107.14
3.97 12.09 83517.44
1.80 17.33 27354.64
0.87 32.80 62709.42
1.52 29.53 46944.64
1.27 155.83 26464.91
1.61 20.77 36779.93
1.69 17.63 27560.89
1.11 24.39 103976.98
0.37 23.15 59644.46
2.19 10.92 32161.07
0.55 4.25 39570.59
1.48 11.46 24505.09
16.30 42700.16
1.31 12.82 29408.16
0.88 22.86 158989.85
3.15 29.21 42039.49
2.74 17.40 59116.6
3.74 19.03 57099.57
2.40 22.54 66197.55
2.62 20.41 32941.99
- -568.24 68094.15
0.97 30.09 32724.7
1.36 25.28 61718.77
2.55 22.12 45003.03
0.46 16.95 49731.85
3.35 15.20 30588.35
35.14 62074.11
2.71 12.27 397283.48
75.12 169819.77
0.26 26.49 51559.34
2.91 10.76 60424.39
0.79 15.99 36284.26
4.62 12.55 27027.46
1.56 20.40 48101.22
3.25 18.22 261197.41
2.79 21.10 32071.08
2.55 22.82 54515.21
19.36 157791.2
1.08 11.75 85127.37
29.17 150405.73
1.43 10.82 34211.97
19.71 32083.72
1.27 9.73 22637.9
1.39 16.14 73811.19
49.34 26013.59
1.76 23.34 131308.32
1.74 19.50 78038.36
2.42 10.90 161581.87
1.74 22.86 37799.37
2.30 18.71 182134.45
0.85 33.48 26745.3
2.41 18.70 303731.47
1.71 24.32 33042.97
2.39 12.08 234384.43
2.81 21.00 42474.79
3.91 35.51 42280.8
3.35 15.84 35488.41
0.98 21.46 29946.72
3.00 18.57 47494.33
- -37.42 10602.85
2.62 29.90 79999.93
2.69 19.99 59984.71

52 Week
High
Low

Price+/-Week

Yld

Lowes
64.86
1.03 64.88 44.13
Lyondell
80.77
1.91 115.40 74.37
Marathon Ptl
92.15
2.06 97.94 74.64
MarathonOil
29.23
0.31 41.92 28.22
Marsh&M
58.23
1.64 58.56 44.25
MasterCard
89.08
1.79 89.87 68.68
McDonald's
96.31 -0.50 103.78 89.34
McGraw Hill
93.71
0.25 93.94 71.16
McKesson
212.63
1.87 212.90 156.00
Medtronic
75.04
1.17 75.10 53.33
Merck
61.49
1.09 61.77 47.61
Metlife
56.35
0.74 57.57 46.15
MicronTech
36.49
0.54 36.50 20.64
Microsoft
48.42
0.61 50.05 34.63
MondelezInt
38.50 -0.70 39.54 31.83
Monsanto
120.86
0.95 128.79 104.08
MorganStly
37.24
2.06 37.74 28.31
Netflix
350.92
4.33 489.29 299.50
News Corp A
37.81
1.01 37.95 30.67
NextEraE
102.93 -1.46 105.94 81.52
Nike
99.33
0.04 99.50 69.85
NobleEngy
50.59
1.41 79.63 47.75
NorfolkS
107.07 -4.57 117.64 86.90
Northrop
147.69
6.76 148.77 107.21
NtlOilVarc
66.89 -0.15 86.55 65.00
OccidPet
81.48
1.71 101.38 76.36
Oracle
41.93 -0.48 43.19 33.22
Pepsico
97.76 -2.34 100.57 77.01
Pfizer
31.99
0.84 32.96 27.51
Phillips66
73.02
0.00 87.98 66.12
PhilMorris
87.14
0.21 91.63 75.28
PionrNat
143.00 -0.23 234.60 140.11
PNCFin
90.18
2.71 90.43 73.92
PPG Inds
222.85
4.03 225.45 171.56
Praxair
129.53
1.15 135.24 117.32
Prec Cast
242.70
4.80 275.09 215.09
Priceline
1135.97 -24.22 1378.96 1017.28
ProctGmbl
90.38 -0.05 91.17 75.26
Prudntl
88.34
3.36 94.30 75.89
PublStor
184.56 -3.07 188.36 147.14
Qualcomm
73.37
0.47 81.97 67.67
Raytheon
107.62
0.92 110.00 85.30
Regen Pharm 423.23
7.12 427.78 257.69
ReynoldsAm
66.90
0.99 67.19 46.55
Salesforce
58.85 -1.02 67.00 48.18
Schlmbrg
87.16
1.21 118.76 82.66
SempraEgy
110.15 -1.58 114.50 86.00
SimonProp
180.83
0.03 184.03 148.20
SouthCpr
30.25
0.30 33.90 24.60
Southern
47.54
0.11 48.31 40.03
Southwest Air
41.12 -0.70 42.52 17.90
SpectraEn
37.13 -0.75 43.12 32.80
Sprint
4.85 -0.27 11.47
4.64
Starbucks
83.57
2.36 83.92 67.93
StateSt
79.28
2.55 79.64 62.67
Stryker
94.62
1.71 95.01 71.22
Target
73.66 -0.34 73.83 54.66
TeslaMotors 223.71 -20.81 291.42 134.21
TexasInstr
55.58
1.16 55.78 40.33
TheTrvelers
105.20
0.75 105.91 79.89
ThrmoFshr
128.54 -0.75 129.69 99.75
TimeWrnr
84.26 -0.86 88.13 60.72
TimeWrnrC 147.53 -1.75 155.32 128.78
TJX Cos
65.58 -0.58 66.37 51.91
T-Mobile US
28.19 -1.00 35.50 24.50
Twitter
38.49 -3.25 74.73 29.51
UnionPac
118.61
1.84 123.61 80.02
UPS B
110.98
1.06 111.32 93.19
USBancorp
45.13
0.93 45.21 38.10
UtdHlthcre
100.33
1.70 101.33 69.57
UtdTech
111.29
1.21 120.66 97.30
ValeroEngy
49.78
1.17 59.69 42.53
Verizon
48.61 -1.98 53.66 45.45
Vertex Pharm 117.95
0.07 121.88 59.79
VF Cp
73.68 -1.49 74.72 55.14
Viacom
76.90
1.27 89.76 65.86
Visa Inc
263.35
5.16 263.49 194.84
Walgreen
68.60 -0.01 76.39 54.86
WalMartSto
84.12 -3.42 87.07 72.27
Wellpoint
128.71
1.56 129.96 81.84
WellsFargo
55.03
0.55 55.35 43.21
Williams Cos
50.04 -1.71 59.77 33.98
Yahoo
50.99 -0.75 52.62 32.15
Yum!Brnds
78.30
1.05 83.58 65.81

P/E MCap m

1.23 26.26 63102.86

3.10 9.87 40438.95
1.84 11.90 25819.76
2.57 11.24 19727.24
1.70 22.73 31496.56
0.48 31.77 99138.94
3.24 19.66 94569.61
1.21 29.59 25442.27
0.43 36.82 49305.02
1.52 26.61 73863.11
2.75 34.99 175300.2
2.13 11.98 64015.97
15.29 39170.38
2.22 19.74 399118.93
1.42 37.39 64677.04
1.34 24.80 58505.1
0.77 15.41 72893.7
96.90 21087.14
0.64 21.69 52333.65
2.65 24.03 44927.12
0.91 33.09 67936.81
1.22 20.63 18306.33
1.95 17.38 33131.94
1.71 16.34 29833.27
2.07 11.36 28801.08
3.31 11.77 63181.88
1.07 18.65 185804.58
2.41 22.48 146308.2
3.07 20.55 201558.03
2.34 11.90 40417.55
4.22 18.17 135390.74
0.05 -83.26 20470.15
1.96 12.65 47453.6
1.10 23.05 30582.83
1.89 21.42 37741.49
0.05 19.67 34592.69
26.67 59474.87
2.65 26.48 244217.49
2.31 18.04 40283.04
2.92 38.25 31878.25
2.02 17.34 121985.03
2.11 17.03 33186.56
- 143.99 42192.61
3.80 23.51 35542.87
- -118.76 36075.05
1.67 17.04 112156.96
2.28 25.03 27085.19
2.69 39.24 56197.28
1.46 18.85 24749.56
4.18 21.13 42777.1
0.47 25.87 27909.97
3.39 25.88 24914.24
-9.62 19186.51
1.20 32.06 62535.43
1.36 17.62 33099.03
1.24 58.74 35796.69
2.39 31.67 46918.8
- -142.15 28049.16
2.08 25.10 58709.15
1.92 10.53 34862.89
0.45 32.21 51419.27
1.42 18.30 70650.85
1.89 21.54 41381.35
0.95 22.22 45178.08
- 186.75 22759.21
- -22.36 24422.35
1.46 22.77 105456.07
2.28 28.62 77946.18
2.02 15.40 80755.01
1.26 18.77 96295.84
2.04 17.07 101458.45
1.93 7.24 25947.58
4.23 10.92 201718.07
- -54.69 28369.55
1.37 26.20 31820.35
1.58 14.72 27652.58
0.58 31.77 129884.74
1.76 36.50 65196.54
2.21 18.15 271134.73
1.27 16.42 34744.16
2.27 14.02 285474.98
3.40 19.33 37403.03
7.04 48305.45
1.82 25.40 34424.52

Closing prices and highs & lows are in traded currency (with variations for that
country indicated by stock), market capitalisation is in USD. Highs & lows are
based on intraday trading over a rolling 52 week period.
ex-dividend
ex-capital redistribution
# price at time of suspension

Dec 05
US$
JPMorgan Chase & Co.
Duke Energy Ohio, Inc.
Citigroup Funding Inc.
Wachovia Corporation
Ryder System, Inc.
Bear Stearns Cos, LLC
Euro
Standard Chartered PLC
Anheuser Busch InBev NV/SA
BP Capital Markets
Philip Morris Intl, Inc.
Yen
Wal-Mart Stores, Inc.
Sterling
Southern Water Services (Fin) Limited
IPIC GMTN Limited

Red
date Coupon

Ratings
M*

Bid
yield

Day's
chge
yield

Mth's Spread
chge
vs
yield
US

F*

Bid
price

05/25
06/25
09/25
10/25
12/25
03/26

5.50
6.90
4.25
6.61
6.95
6.00

ABBB+
AA
BBB
A

Baa1
Baa1
Baa2
A3
Baa1
A3

A
AA
A+
AA+

101.69
119.47
100.65
120.85
123.33
101.41

5.39
4.59
6.14
4.23
4.31
5.91

0.00
0.22
0.00
-0.04
0.22
0.00

-0.24
0.01
-0.14
0.23
0.04
0.05

3.08
2.28
3.82
1.91
1.99
-

10/25
03/26
09/26
05/29

4.00
2.70
2.21
2.88

BBB
A
A
A

A3
A2
A2
A2

A+
A
A
A

105.29
105.05
101.94
109.80

3.47
2.19
2.03
2.08

0.02
-0.02
0.02
0.02

0.09
0.19
-0.02
-0.10

1.16
-

07/15

0.94

AA

Aa2

AA

100.41

0.29

0.00

-0.05

-0.35

03/26
03/26

6.64
6.88

AAA

Baa1
Aa2

AAA

130.11
129.34

3.39
3.65

0.00
0.01

-0.26
-0.15

S*

Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poors, M Moodys, F - Fitch.

GILTS: UK CASH MARKET

Dec 05
Day Chng
Prev
52 wk high
52 wk low
VIX
11.82
-0.56
12.38
31.06
10.28
VXD
11.98
-1.02
13.00
22.60
7.64
VXN
14.37
-0.61
14.98
31.17
9.66
VDAX
14.11
-1.10
15.21
CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility.
Deutsche Borse. VDAX: DAX Index Options Volatility.

Australia

Yld

BONDS: GLOBAL INVESTMENT GRADE

Day's
chge
yield

VOLATILITY INDICES
Day's
change

CREDIT INDICES

Short
7 Days
One
Three
Six
One
Dec 05
term
notice
month
month
month
year
Euro
-0.15 0.00 -0.13 0.02 -0.13 0.02 -0.05 0.10 0.05 0.20 0.21 0.36
Sterling
0.40 0.55 0.40 0.55
Swiss Franc
Canadian Dollar
US Dollar
0.08 0.18 0.08 0.18 0.10 0.20 0.15 0.25 0.23 0.33 0.48 0.58
Japanese Yen
-0.05 0.05 -0.05 0.05 -0.50 -0.20 -0.20 0.00 -0.15 0.15 -0.10 0.20
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs:
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. LA 7 days
notice: Tradition (UK).

Stock

BONDS: HIGH YIELD & EMERGING MARKET

Close
Prev
price
price
ICICI Bk
359.80
362.20
Infosys
2070.30
2101.80
SandsCh
41.10
40.70
Galaxy Enter
48.05
47.15
BncBrasil
26.64
26.64
CNOOC
10.78
10.98
SntnderBras
7.30
7.30
QatarNtBk
209.50
209.00
TeslaMotors
223.71
228.28
Twitter
38.49
38.79
Amazon
312.63
316.93
Sasol
427.50
433.50
WoodsdPet
35.71
36.45
LasVegasSd
59.22
59.01
Vale
21.67
21.67
Maybank
8.89
8.89
Bradesco
35.61
35.61
CntnentlRes
38.23
38.86
Itausa
9.76
9.76
Ambev
15.71
15.71
Based on the FT Global 500 companies in local currency

BOND INDICES
Since
16-12-2008
16-12-2008
18-02-2010
05-05-2014
05-03-2009
05-10-2010
03-08-2011

INTEREST RATES: MARKET

Over
Dec 05 (Libor: Dec 04)
night
US$ Libor
0.11100
Euro Libor
-0.06500
Libor
0.46688
Swiss Fr Libor
Yen Libor
Euro Euribor
Sterling CDs
US$ CDs
Euro CDs
LA 7Day Notice
0.45%-0.40%

Yld

FT 500: BOTTOM 20
Day
change change %
3.20
1.42
1.50
5.63
0.31
2.33
0.26
1.96
0.05
0.72
0.00
0.00
-0.10
-0.14
0.07
0.76
0.28
1.65
16.00
0.16
0.08
1.37
-0.31
-0.09
0.28
1.31
-3.21
-1.84
4.00
0.09
-0.05
-0.14
45.50
1.07
12.00
0.16
0.28
2.01
250.00
3.03

Close
Prev
price
price
TevaPha
229.00
225.80
Citic Secs
28.15
26.65
IndstrlBk
13.60
13.29
ShgPdgBk
13.53
13.27
BkofComm
6.97
6.92
Enbridge
60.04
60.04
PingAnIns
73.00
73.10
ChMinsheng
9.24
9.17
ChinaMBank
17.28
17.00
Nrlsk Nckl
9851.00
9835.00
ChinaCitic
5.91
5.83
Biogen
340.87
341.18
SaicMotor
21.58
21.30
Kweichow
170.92
174.13
Fuji Heavy Ind
4531.50
4527.50
ChinaPcIns
35.40
35.45
Bridgestne
4310.00
4264.50
Toyota
7742.00
7730.00
Citic Ltd
14.20
13.92
ShnEtsuCh
8494.00
8244.00
Based on the FT Global 500 companies in local currency

Dec 05
US
US
US
Euro
UK
Japan
Switzeland

52 Week
High
Low

Orange
14.72
0.55 14.73
PernodRic
95.49
0.18 96.23
Safran
53.54
1.51 54.59
Sanofi
76.14 -1.72 89.95
Schneider
63.54 -2.06 72.22
SocGen
39.28 -0.61 48.69
StGobn
37.24
0.30 46.40
Total SA
45.19
0.20 54.71
UnibailR
210.15 -2.35 214.30
Vinci
45.33
1.86 57.36
Vivendi
20.74
0.26 21.31
Germany ()
Allianz
138.85
0.40 139.75
BASF
74.30
1.29 88.28
Bayer
120.95
0.00 121.40
BMW
92.35
0.40 96.10
Continental
176.85
7.65 183.25
Daimler
70.00
2.20 71.27
Deut Bank
26.85
0.57 40.00
Deut Tlkm
13.71
0.01 13.75
DeutsPost
26.95
0.23 28.47
E.ON
15.46
1.21 15.46
Fresenius
43.16 -0.44 44.31
HenkelKgaA
79.61 -0.03 80.00
Linde
153.95
2.20 158.45
MuenchRkv
165.95
0.30 170.40
RWE
29.80
0.67 32.98
SAP
56.94
0.26 63.30
Siemens
94.39 -0.77 101.35
Volkswgn
185.50
3.60 197.95
Hong Kong (HK$)
AIA
44.60 -0.35 45.65
BOC Hold
27.40 -0.25 27.95
ChngKong
139.30 -4.00 152.00
Citic Ltd
14.20
1.08 16.88
Citic Secs
28.15
5.50 29.80
CNOOC
10.78 -1.22 15.88
Galaxy Enter
48.05 -5.55 84.50
HangSeng
128.10 -0.80 133.00
HK Exc&Clr
178.00
9.30 189.00
Hutchison
94.30 -4.60 113.50
SandsCh
41.10 -5.80 68.00
SHK Props
114.80
0.80 120.20
Tencent
118.90 -6.20 134.90
India (Rs)
Bharti Airtel
367.80 -14.50 420.00
HDFC Bk
942.75 -14.40 965.90
Hind Unilevr 820.65 34.55 829.75
HsngDevFin 1114.85 -45.80 1177.8
ICICI Bk
359.80-1394.60 366.05
Infosys
2070.3-2289.55 2201.1
ITC
391.35 28.20 392.00
OilNatGas
365.30 -14.10 471.85
RelianceIn
957.35 -34.25 1145.25
SBI NewA
317.55 -3.85 326.95
SunPhrmInds 821.55 -18.15 932.50
Tata Cons
2578.95 -64.05 2839.7
Tata Motors 525.35 -8.15 550.70
Wipro
578.85 -6.95 621.90
Indonesia (Rp)
Astra Int
7100
0.00
8050
Bk Cent Asia
13350 250.00 13575
Telekom Idn
2840 30.00
3010
Israel (ILS)
TevaPha
229.00 226.80 227.20
Italy ()
Enel
3.96
0.08
4.49
ENI
15.50 -0.57 20.46
Generali
17.38 -0.01 17.70
IntSPaolo
2.52
0.04
2.66
Luxottica
44.60
1.60 44.62
Tenaris
12.88 -0.42 18.29
Unicred
5.91 -0.04
6.89
Japan ()
AstellasPh
1719 21.50
1842
Bridgestne
4310 344.00
4322
Canon
3900 153.00
3931
CntJpRwy
17115 135.00 17960
Denso
5932 447.00
5966
EastJpRwy
8866 86.00
9065
Fanuc
21120 1245 21230
FastRetail
43240 615.00 45350
Fuji Heavy Ind 4531.5 372.00
4571
Hitachi
931.50 25.50 932.00
HondaMtr
3738 225.50
4330
JapanTob
3632 -154.50
4193
KDDI
7605 83.00
7760
Keyence
56000 1880 58000
MitsbCp
2245 25.00
2356
MitsubEst
2617 -18.00
3160

0.32 15.22 165075.35

32.10
30.42
81.64
85.97
32.40
5.67
42.05
33.01
35.71
30.84

6.80
39.55

Stock

Bid Day chg Wk chg Month

Year
Yield
yield
yield chg yld chg yld
2.31
0.02
-0.10
-0.29
-0.97
3.12
0.01
0.02
-0.30
-1.41
0.52
0.02
0.04
0.01
0.00
0.93
0.02
0.08
-0.11
0.00
0.30
-0.01
-0.01
-0.01
-0.89
1.21
-0.01
0.04
0.00
0.00
1.01
0.04
0.06
-0.02
0.00
2.08
0.05
0.11
-0.06
0.00
0.02
0.00
0.02
0.00
-0.23
1.05
0.03
0.12
0.01
0.00
0.06
0.01
0.02
0.03
-0.53
1.00
0.02
0.08
-0.07
-1.34
0.02
0.00
0.00
0.00
0.00
0.28
0.01
0.02
-0.01
0.00
1.03
0.00
0.06
-0.15
0.00
2.10
0.00
0.07
-0.19
-1.29
0.00
0.00
0.00
0.00
0.00
0.15
0.01
0.03
0.03
0.00
0.78
0.01
0.08
-0.04
0.00
1.63
0.00
0.07
-0.09
-1.09
5.99
-0.30
-1.12
-0.65
0.00
7.45
-0.35
-1.06
-0.99
-1.52
0.25
0.02
-0.01
-0.07
-1.55
1.38
-0.02
0.00
-0.30
0.00
0.48
-0.04
-0.03
-0.18
0.00
0.97
-0.05
-0.03
0.00
0.00
1.96
-0.07
-0.07
-0.42
0.00
3.29
-0.10
-0.15
-0.49
-1.69
0.00
0.00
0.00
0.00
0.00
0.09
0.00
-0.03
-0.07
0.00
0.39
-0.01
-0.03
-0.08
0.00
1.42
0.00
0.03
-0.11
0.00
0.01
-0.02
0.00
0.00
0.00
0.90
0.01
0.08
-0.07
0.00
3.66
-0.03
-0.05
-0.12
-1.30
3.86
0.01
-0.06
-0.21
-0.96
1.22
0.01
-0.01
0.00
-0.60
1.86
0.01
0.00
-0.13
0.00
0.40
-0.04
-0.04
-0.21
-3.46
2.71
-0.08
-0.15
-0.55
-3.40
0.62
-0.02
-0.03
-0.12
0.00
1.82
-0.06
-0.08
-0.34
0.00
0.04
0.01
0.02
-0.03
-1.35
1.10
0.02
0.08
-0.09
0.00
-0.13
0.00
0.00
0.00
0.00
0.38
0.00
-0.01
0.00
0.00
0.68
0.02
0.07
-0.09
-0.34
1.56
0.04
0.11
-0.14
0.00
2.02
0.03
0.09
-0.18
0.00
2.76
0.02
0.08
-0.17
0.00
0.64
0.10
0.17
0.00
0.00
1.69
0.11
0.20
0.00
0.00
2.32
0.07
0.15
0.00
0.00
2.98
0.04
0.09
0.00
0.00

Red
52 Week
Amnt
Change in Yield
Dec 05
Price
Yield
Day
Week
Month
Year
High
Low
m
Tr 3.5pc 'WL
100.76
3.47
-0.02
2.29
9.41
24.97 100.78
79.66
0.02
Tr 2.75pc '15
100.29
0.37
-0.02
-0.07
-0.20
-2.23 102.59 100.29
0.29
Tr 2pc '16
101.66
0.51
-0.04
-0.12
-0.05
-1.13 102.88 101.66
0.32
Tr 1.75pc '17
102.24
0.68
-0.09
-0.25
0.15
-0.01 102.56 101.07
0.29
Tr 5pc '18
112.76
0.99
-0.15
-0.45
0.19
-1.63 114.66 111.68
0.35
Tr 4.5pc '19
113.44
1.24
-0.19
-0.55
0.46
0.02 114.43 111.17
0.36
Tr 4.75pc '20
116.63
1.45
-0.21
-0.65
0.62
0.96 117.71 113.53
0.33
Tr 8pc '21
139.49
1.58
-0.20
-0.73
0.76
0.90 140.87 135.65
0.24
Tr 4pc '22
115.69
1.69
-0.21
-0.75
1.21
4.70 116.72 109.05
0.38
Tr 5pc '25
127.71
2.00
-0.25
-0.75
1.83
7.81 129.06 116.64
0.35
Tr 4.25pc '27
122.84
2.22
-0.27
-0.78
2.43
11.01 124.26 109.01
0.31
Tr 4.25pc '32
125.28
2.46
-0.16
-0.72
3.17
13.38 126.73 109.23
0.35
Tr 4.25pc '36
126.71
2.60
-0.17
-0.78
3.54
14.74 128.33 109.13
0.26
Tr 4.5pc '42
135.38
2.69
-0.13
-1.02
4.03
16.87 137.28 114.63
0.26
Tr 3.75pc '52
124.16
2.72
-0.14
-1.05
5.15
20.94 126.03 101.59
0.22
Tr 4pc '60
133.99
2.69
-0.16
-0.98
5.69
22.52 135.95 108.28
0.21
xd Ex dividend. Closing mid-prices are shown in pounds per 100 nominal of stock. Red yield: Gross redemption yield.
This table shows the gilts benchmarks & the non-rump undated stocks. A longer list appears on Mondays & the full list
on Saturdays, and can be found daily on ft.com/bond&rates.

GILTS: UK FTSE ACTUARIES INDICES

Price Indices
Fixed Coupon
1 Up to 5 Years
2 5 - 10 Years
3 10 - 15 Years
4 5 - 15 Years
5 Over 15 Years
6 Irredeemables
7 All stocks
Index Linked
1 Up to 5 Years
2 Over 5 years
3 5-15 years
4 Over 15 years
5 All stocks
Yield Indices
5 Yrs
10 Yrs
15 Yrs

Day's
chg %
-0.09
-0.19
-0.23
-0.20
-0.12
0.01
-0.13

Dec 05
100.05
179.40
204.99
185.14
288.77
425.57
171.25
Dec 05
316.94
560.45
437.65
678.97
520.84
Dec 05
1.38
2.04
2.41

Day's
chg %
-0.09
-0.15
-0.19
-0.13
-0.14
Dec 04
1.34
2.02
2.39

Yr ago
1.78
2.92
3.39

Total
Return
2329.89
3139.36
3651.85
3263.27
4064.10
5024.52
3108.85

Month
chg %
-0.08
5.81
2.44
7.41
5.17

Return
1 month
0.47
1.51
2.56
1.82
4.48
9.80
2.39

Year's
chg %
-1.47
18.17
7.45
23.90
15.92

20 Yrs
45 Yrs
Irred

inflation 0%
Dec 05
Dur yrs Previous
Yr ago
Dec 05
Real yield
Up to 5 yrs
-1.13
2.59
-1.16
-1.35
-1.70
Over 5 yrs
-0.67
22.56
-0.68
0.03
-0.71
5-15 yrs
-0.80
9.24
-0.82
-0.15
-0.92
Over 15 yrs
-0.65
28.36
-0.66
0.06
-0.68
All stocks
-0.68
20.38
-0.69
0.01
-0.72
See the FTSE website for more details: http://www.ftse.com/products/indices/gilts

Total
Return
2382.53
4106.12
3288.26
4889.80
3860.47
Dec 05
2.60
2.72
3.47

Return
1 year
2.07
7.43
13.77
9.19
21.14
29.90
10.88

Yield
1.05
1.71
2.14
1.88
2.65
3.47
2.37

Return
1 month
0.15
5.99
2.68
7.56
5.35

Return
1 year
0.35
19.25
8.82
24.79
17.10

Dec 04
2.59
2.71
-

Yr ago
3.56
3.60
-

inflation 5%
Dur yrs Previous
2.61
-1.74
22.68
-0.71
9.27
-0.95
28.43
-0.68
20.53
-0.73

Yr ago
-1.92
-0.01
-0.29
0.04
-0.04

All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
loss arising from the reliance on or use of the listed information. For all queries e-mail
ft.reader.enquiries@morningstar.com

Data provided by Morningstar | www.morningstar.co.uk

24

Monday 8 December 2014

Corporate diary December 8 December 12

ECONOMIC OUTLOOK

TUESDAY 9

Can doughnuts recover from the

slowdown in sales currently plaguing the
US restaurant industry? That is the
question Krispy Kreme will need to
answer when it reports third-quarter
results.
Sales at fast-food restaurants across
the country have slumped as low-income
customers, their primary target, have
struggled to emerge from the global
financial crisis.
Coffee and doughnuts, in which Krispy
Kreme specialises at nearly 900 shops in
more than 20 countries, have been
similarly hit, with weak earnings in the
front half of the year.
The three months to September were
the companys first full quarter under
Tony Thompson, who took over as chief
executive from Jim Morgan in May.
Analysts will use the results as a first
glimpse at how Mr Thompson, who was
previously chief operating officer of the
Papa Johns pizza chain, is handling his
latest position.
Analysts will also be looking for
whether the company raises full-year
earning guidance from the 69-74 cents a
share range it forecast last quarter.
Wall Street analysts expect Krispy
Kreme to earn 19 cents a share on
$124.4m in revenues. Neil Munshi
EARNINGS (see box below)

Krispy Kreme

Q3

$0.19

($0.16)

WEDNESDAY 10

A steady ship at Micro Focus is moving

into uncharted territory. During previous
declarations to the market this year, the
UK enterprise software company has
been consistently optimistic, saying it was
trading in line with expectations.
Revenues are expected to be $433.1m
in the 2014 fiscal year, up more than 6 per
cent from the year before. Its earnings for
the first half of 2014 are expected to
show revenues of $216.7m and pre-tax
profits of $98.1m.
Those earlier pronouncements all came
Diary commentary from FT reporters. Data, unless
otherwise stated, from Thomson Reuters. Company
announcements, collated by Thomson Streetevents,
are of information publically available before last
week. Results forecasts, from Thomson I/B/E/S, are
for fully diluted, post-tax EPS in local currency for
the stated fiscal period. The comparable period of
the previous year is bracketed. Non-UK reporting
periods are broken by quarter: Q1, Q2, Q3, Q4. UK
periods are designated: Q1, H1 (first half), Q3 and
FY (full year).

Trading Directory

Ashleys other stakes in focus for Sports Direct investors

Sports Direct is set to announce its
half-year results on Thursday but all
eyes will be on what Mike Ashley, who
controls 58 per cent of the shares, plans
to do with the interests the retailer has
acquired in Debenhams and Tesco.
Pre-tax profit is expected to come in
at 165m, compared with 146.2m last
time, according to Citi, joint broker. It
also forecasts flat retail sales from
stores open at least a year during the
second quarter, because of the warm
autumn.
However, investors will be all ears for
any comments about the groups
interests in Debenhams and Tesco.
Sports Direct has already offloaded the
4.6 per cent stake in Debenhams it
acquired in early October. It sold a put
option in the department store group,
which, together with a similar deal in
January, potentially gives it a stake of
almost 13 per cent.
In September, just days after Tesco

before the company transformed itself. It

announced in September that it would
acquire US rival Attachmate in an allshare transaction worth $1.2bn, valuing
the combined company at $2.35bn. The
deal, which was completed this month,
will make Micro Focus a much bigger, but
potentially less predictable, business.
George OConnor, an analyst at broker
Panmure Gordon, is generally positive
about the deal. He argues that the two
companies share DNA. Both focus on
helping large enterprises maintain and
upgrade their IT systems.
Mr OConnor said it would be too early
to see the impact of the acquisition in the
earnings statement, although observers
needed to watch carefully for early

revealed that it had overstated its

profits by 250m, Sports Direct struck a
similar derivatives deal involving the
grocers shares, and could benefit from
a rise in the price.
Sports Direct also owns an 11 per
cent stake in House of Fraser.
Investors will be keen to know how
trading in Sports Direct concessions in
four Debenhams stores are progressing,
and the groups plans to move into the
gym market. Last month Mr Ashley
promised to revolutionise the fitness
industry by launching club membership
of 5 a month at a new chain of Sports
Direct gyms.
The retail entrepreneur is poised to
open a purpose-built gym in
Merseyside, the first of 200 planned.
Users will be required to pay a 10
joining fee and sign up for at least 12
months. Membership involving gym use
and group classes is offered at 8 a
month. Andrea Felsted

signs whether good or bad of any

immediate after-effects of the merger.
Murad Ahmed
Investors will be hoping for more of the
same when Ashtead, the construction
equipment rental company, announces
second-quarter results. Shares in the
FTSE 100 company are up 60 per cent
this year, and profits are on an upward
trajectory.
Shares have increased 14-fold in five
years. The company, which rents out
diggers, cherry pickers and generators,
hopes to build on its seemingly
unstoppable growth, with revenue
expected to jump 11 per cent year on year
to 495m from 439m.

Ashtead posted record results in the

first quarter, with pre-tax profit up 33 per
cent to 120m. It continues to surprise
despite sky-high expectations.
The company has been thriving off the
back of the US recovery, with about
85 per cent of its revenue generated by
its US subsidiary, Sunbelt Rentals.
Ashtead is investing heavily in capex
and should spend about 875m on new
equipment this year to lay the
foundations for continued expansion,
focused on the US.
During the downturn market share was
picked up from smaller competitors in a
fragmented US market, and Ashtead
gained from a wider shift towards tool
rental. Out of the 16 institutional analysts
that follow it, 15 have a buy rating.
Joel Lewin
EARNINGS

Ashtead Group
Micro Focus Intl

Q2 15.57p (14.20p)
H1 $0.57 ($0.47)

LTRO take-up to affect likelihood of QE

The weeks biggest news is likely to
come on Thursday with the
announcement of the take-up of the
European Central Banks targeted
longer-term refinancing operation as
part of its monthly report.
The ECB has offered up to 400bn in
cheap, fixed-rate loans. According to
analysts at ING, the central bank is
looking to expand its balance sheet by
close to 1tn. If it has struggled to
auction off these loans and take-up is
low, then full-blown quantitative easing
is much more likely.
In terms of data releases, China will be
the weeks main focus, with inflation
figures out on Wednesday. Industrial
production, retail sales and fixed

Chinese inflation
Annual % change
6

THURSDAY 11

SuperGroups new chief executive, Euan

Sutherland, had a bumpy start after the
warm autumn forced the clothing retailer
to issue a profit warning at its secondquarter update at the end of October.
But with the bad weather flagged up
and out of the way, the former Cooperative Group boss will be hoping for a
calmer ride in his debut presentation of
first-half results for the 26 weeks to
October 25.
Analysts will be keen to gauge the
impact of the slowdown in autumn sales
on wholesale orders for spring and
summer 2015.
Many of the companys Superdrybranded clothing lines can be sold from
one season to the next, which means
wholesalers with a glut of stock may
order less from the company, say
analysts.
Profit before tax for the period is
expected to be down on the previous
years figure of 18m, with analysts at
Investec forecasting a 30 per cent fall.
The company may also update on its
expansion plans in Europe and China,
where it is yet to secure a franchise
partner.
But with the Christmas period coming
into full swing and Mr Sutherland in the
job less than two months, analysts are
expecting little change in strategy at this
stage. Kadhim Shubber
EARNINGS

SuperGroup
FY* 57.36p (57.20p)
Sports Direct Intl FY* 37.13p (30.30p)
*H1 estimate

4
2
0
2010

11

12

13

14

Source: Thomson Reuters Datastream

asset investment will also be published

on Friday.
The expectation is that consumer
inflation was stable in November. Food
prices grew slightly but this is likely to
be offset by a sharp decline in energy
prices. Because of this fall, input prices
are expected to have declined even
more in November than October. The
consensus forecast is that the
producers prices index fell 2.4 per cent,
against Octobers 2.2 per cent.
Industrial production is likely to
remain weak in November. Purchasing
managers indices point to a contraction,
with the consensus being that yearon-year growth shrank to 7.5 per cent
in November from 7.7 per cent the
month before. Retail sales are likely to
be stable, with growth remaining at
11.5 per cent.
Fixed asset investment is likely to
slow from 15.9 per cent growth in the
year to date to 15.8 per cent. However,
this may not be wholly bad: recent
research has pointed to much of
Chinas recent investment being
wasteful, such as in the ghost cities
and unused steel mills.
In the UK retail sales, manufacturing
output, industrial production and trade
figures will be released this week.
Gavin Jackson

4CAST ECONOMIC CALENDAR

COUNTRY
MONDAY
Canada
China
China
China
Germany
Germany

For

Indicator

Nov
Nov
Nov
Nov
Oct
Oct

Housing starts
Exports
Imports
Trade balance
Ind. prod.
Ind. prod.

5 200.5 183.6
2 8.0 11.6
2 3.8 4.6
3 44.0 45.4
1 0.3 1.4
2 0.7 -0.1

TUESDAY
France
Germany
Germany
UK
UK
UK
UK

Oct
Oct
Oct
Oct
Oct
Oct
Oct

Trade balance
Current account
Trade balance
Ind. prod.
Ind. prod.
Manuf. prod.
Manuf. prod.

3 n/a -4.7
3 19.0 22.3
3 19.0 21.9
1 0.2 0.6
2 1.8 1.5
1 0.2 0.4
2 3.2 2.9

Agg. financing
CPI
Money supply M2
PPI
Ind. prod.
Ind. prod.
Manuf. prod.
Manuf. prod.
Exports
Imports
Trade balance
Consumer conf.
Trade balance

3 890.0 662.7
2 1.6 1.6
2 12.5 12.6
2 -2.4 -2.2
1 n/a 0.0
2 n/a -0.3
1 n/a 0.6
2 n/a 0.2
2 n/a -5.0
2 n/a 3.6
3 n/a -13.4
39.5 38.9
3 -9.5 -9.8

WEDNESDAY
China
Nov
China
Nov
China
Nov
China
Nov
France
Oct
France
Oct
France
Oct
France
Oct
India
Nov
India
Nov
India
Nov
Japan
Nov
UK
Oct
THURSDAY
Canada
Oct
France
Nov
France
Nov
France
Nov

House prices
CPI
CPI
HICP

Units* Mkt* Prev*

1
1
2
1

n/a 0.1
n/a 0.0
n/a 0.5
n/a 0.0

COUNTRY
France
Germany
Germany
Germany
Germany
UK
US
US
US

For Indicator
Units* Mkt* Prev*
Nov HICP
2 n/a 0.5
Nov CPI (final)
1 0.0 0.0
Nov CPI (final)
2 0.6 0.6
Nov HICP (final)
1 0.0 0.0
Nov HICP (final)
2 0.5 0.5
Nov RICS house prices
% 15.0 20.0
Week Initial claims
5 n/a 297.0
Nov Retail sales
1 0.3 0.3
Nov R. sales (ex auto)
1 0.1 0.3

FRIDAY
Brazil
Brazil
China
China
China
Eurozone
Eurozone
France
Germany
Germany
India
India
Japan
Japan
Russia
US
US

Oct
Oct
Nov
Nov
Nov
Oct
Oct
Oct
Nov
Nov
Nov
Oct
Oct
Oct
Oct
Nov
Dec

Retail sales
Retail sales
Ind. prod.
Retail sales
Fixed asset inv.
Ind. prod.
Ind. prod.
Current account
WPI
WPI
CPI
Ind. prod.
Ind. prod.
Ind. prod.
Trade balance
PPI
Univ of Mich sent.

1 0.3 0.4
2 n/a 0.5
2 7.5 7.7
2 11.5 11.5
2 15.8 15.9
1 0.2 0.6
2 0.6 0.6
3 n/a -1.2
1 n/a -0.6
2 n/a -0.7
2 n/a 5.5
2 n/a 2.5
1 n/a 0.2
2 n/a -1.0
3 11.9 13.0
1 -0.1 0.2
89.5 88.8

Mkt* = market consensus estimates. Prev*= previous actual

Units*; 1 = % change on previous period, 2 = % change on same
period in previous year, 3 = national currency bn, 4 = annualised
quarterly % change, 5 = 000s, NSA=not seasonally adjusted,
SA=seasonally adjusted.
See more at www.ft.com/economic-calendar

FT SPECIAL REPORT

Japan Technology & Innovation

Monday December 8 2014

www.ft.com/reports | @ftreports

Titans slim down and fight back

Some companies are
finally trying to improve
returns to shareholders,
writes Ben McLannahan

hen Panasonic announced last September it would sell a

majority stake in its
healthcare business to
KKR, the US private equity group,
investors barely blinked.
Healthcare had been a subsidiary of
the Osaka-based group for more than
40 years but was always on the fringes,
accounting for less than 5 per cent of
operating profits in the previous year.
Yet according to Atul Goyal, a Singapore-based analyst at Jefferies, the
$1.7bn divestment was a watershed
moment confirming that some of
Japans technology titans were serious
about boosting returns to shareholders
via restructuring.
Healthcare was a profitable unit in a
high-growth area, selling blood-sugar
monitoring equipment for diabetics.
But under Kazuhiro Tsuga, president
since June 2012, Panasonic has been
focusing its management efforts and
capital resources on four main businesses, including auto products and
housing equipment, most of them selling to other companies rather than
directly to consumers.
So the healthcare division nice as it
was was better off under a new owner.
Panasonic is among the best examples
of a Japanese tech company forced into
taking tough measures because of structural weakness, says Mr Goyal, noting
that the groups return on equity a neg-

Tough measures: Panasonic TVs still draw admirers, but the company is being forced to restructure Bloomberg/Kiyoshi Ota
ative 8 per cent, on average, in the five
years before Mr Tsuga is expected to
top 10 per cent in the year to March.
Selling a long-cherished business such
as healthcare was a strong, bold state-

ment a sign that executives really care

about the future.
Many more Japanese companies
active in the tech sector have become
more assertive in reshuffling portfolios,

Sharp displays may be the

shape of things to come
Trends

Growth is likely to come

from the auto sector as
consumer electronics
slows, says Kana Inagaki
Display technology has seen all manner
of innovations, but the rectangular
design of digital devices be they smartphones, televisions or computers has
held sway for decades.
Now, that de facto standard is set to
change.
Sharp, the Japanese electronics group
that makes screens for Apples iPhones,
is preparing a display for mass production in 2017 that it says can be shaped
into various forms. Circular TVs or
funky phones with curvy screens could
be the future face of electronics.
On a more practical level, Sharp
developed its free-form display for
potential use in cars. By breaking out of
the clunky, rectangular shape and
sharply slimming the bezels around the
screens, the displays can fit neatly into
the narrow front passenger area.
Sharps innovation speaks to a
broader transition occurring in Japans
consumer electronics industry.
Companies including Panasonic,
Sony, and Hitachi are trying to capture
growth in the automotive industry amid
shrinking demand for TVs, personal
computers, and cameras. Japans electronics groups are also grappling with
slowing growth in smartphones.
The global vehicle industry itself is
undergoing a tectonic shift, as stricter
environmental standards call for green
vehicles powered by batteries or hydrogen. More electronics components such
as sensors and cameras are installed in
vehicles as demand grows for safer,
more comfortable cars with technologies to assist drivers.
These trends have, in turn,
blurred the lines between the
electronics and auto sectors.
I can clearly sense the
borderless age approaching, says Shoji Inagaki,
Toyotas general manager
in charge of developing vehicle control systems.
For Sharp, the focus on automoFlexible futures: Sharps screen
curves to fit round dashboards

tive business comes as the company

recovers slowly from bruising losses of
nearly $8bn in the fiscal years 2011 and
2012, caused by a collapse in demand
for big displays.
In recent years, the company has
shifted to the smaller and mediumsized displays used in smartphones and
tablets and hopes to increase sales for
displays used in vehicles.
But the Japanese manufacturer says it
is trying to avoid making the same mistakes with car screens as it did with TV
displays.
Yasuhisa Itoh, Sharps general manager responsible for developing the freeform display, says: We focused too
much in the past on enhancing display
performance. But its come to a point
where customers dont realise the value
in that.
Critics have often said Japanese TV
manufacturers lost touch with consumers as they became obsessed with
improving picture quality, while Asian
rivals offered cheaper sets with display
performance that may have been lower
but was enough to keep viewers happy.
So we decided to shift the axis of our
competition to [display] design, Mr
Itoh said.
Sharp, which has been supplying displays for cars and aircraft for two decades, is betting that more displays will
be installed in vehicles together with
cameras and sensors to enhance safety
features.
Currently, Japanese electronics makers such as Hitachi, Panasonic and
Fujitsu generate from 7 to 16 per cent of
their sales from automotive-related
products, according to Morgan Stanley
MUFG Securities.
The brokerage said in a recent report:
In the automotive industry, orders are
steady and cycles are long, while in the
electronics industry orders fluctuate

widely. That makes automotive business attractive for electronics firms.

Panasonic, which supplies batteries to
US electric-car maker Tesla, is aiming to
double sales in its auto division to Y2tn
($17bn) about 20 per cent of total sales
by the fiscal year to March 2019.
In addition to car batteries, its auto
business includes displays, automotive
infotainment systems, cameras, sensors
and radars.
In October, it agreed to buy a 49 per
cent stake in Ficosa, a family-owned
Spanish car-parts manufacture with
hopes of developing self-driving technology in the future.
Sony has so far trailed behind in
expanding its auto-related business, but
it aims to increase the sale of image sensors used in cars. Despite a massive
restructuring involving PCs, TVs and
smartphones, image sensors is one of
the few growth areas for Sony.
Kazuo Hirai, Sonys chief executive
says: Were going to invest in image
sensors and take on the challenge of
expanding their use in new areas such as
cars and wearable devices in addition to
smartphones.
Still, analysts say Japanese companies
face fierce competition, because the
automotive shift is a global phenomenon with leading technology companies
including Google, Apple, IBM and Intel
all eyeing the sectors growth potential.
Venture firms are also increasing
their clout, highlighted by the rise of
Mobileye, an Israeli start-up that makes
camera-based software for self-driving
vehicles.
BNP Paribas analyst Masahiro Wakasugi says Japanese companies could
benefit from the growing focus on car
safety highlighted by the rise in recalls
by automakers worldwide. Japanese
electronics makers have an advantage
in terms of ensuring quality, he says.
Electronics groups such as Hitachi
and Panasonic have benefited from
decades-long ties with Japanese automakers in a conservative industry
where the supplier system has
depended on a close community of
parts makers. But even that structure is changing with carmakers
now competing to get hold of cutting-edge electronics technologies
being developed across the world.
There are so many high-tech parts
coming in, so we cant win the competition unless we look at both existing suppliers and new players, says Toyotas
Mr Inagaki.

or at least thinking twice about offering

so many gadgets to consumers apparently more interested in the latest offerings from Samsung or Apple.
At Hitachi, for example, chief execu-

tive Hiroaki Nakanishi has won plaudits

for his efforts to spin off consumerrelated operations in mobile phones,
computer parts and flat-panel TVs to
concentrate on more profitable power
plants, rail lines and water treatment
facilities.
At Sony, a new chief financial officer,
Kenichiro Yoshida, is looking to do likewise, apparently given free rein by chief
executive Kazuo Hirai to challenge business areas and customs previously considered sacrosanct.
One example is the dividend. Sony
had preserved payouts over the past five
years, even while it was churning out
cumulative net losses of almost Y700bn
($6bn), so that income-focused investors could continue to buy the stock. But
in September it stopped paying the dividend altogether, for the first time since
the company went public in 1958.
Analysts have taken heart that radical
measures could be in store for the flailing TV and smartphone arms. JJ Park, a
Seoul-based analyst at JPMorgan, says:
Management appears finally to be facing the structural issues, given they have
said they will downsize the businesses.
It is possible to overstate the scale of
the transformations under way. Among
investors, Japan is often still seen as the
spiritual home of the flabby conglomerate, with executives more concerned
with preserving market share than lifting returns for investors.
Five years ago, The Onion, a satirical
news organisation, spoofed Yamaha by
imagining its chief executive saying: At
the Yamaha Corporation, were focused
on one thing and one thing alone quality sound chips, ceiling brackets, editing
software, race-kart engines, sports
board, flugelhorns, ATVs, sequencers
Continued on page 4

Inside
Tight budgets squeeze
scope of research
Academic discovery is
being limited by
commercial priorities
Page 2

Successors lack insight

to nurture innovators
Top executives tend to
focus too much on costs
Page 2

Robotics
As companies look to
robots for sales the
government has
made the sector a key
pillar of growth
Page 3

FT/Nikkei
Co-operation
The FT and Nikkei, the
Japanese business media group,
started to co-operate in 2013 to
give their respective readers
greater insight by combining
the best of the FTs outside
view of Japan with Nikkeis deep
understanding from the inside.
This report features three
articles from Nikkei writers.
http://asia.nikkei.com/

FINANCIAL TIMES

Monday 8 December 2014

Japan Technology & Innovation

Tighter budgets
constrain scope
of academic
research

Life sciences The view that all research must be

commercialised limits discovery, says Junichi Taki

his years Nobel Prize in

physics was particularly
sweet for Japanese industry
and academia. The award,
which went to three scientists who developed blue light-emitting
diodes, came at a time of growing concern about the future of the discipline in
the country.
The question is, how can Japan ensure
that its researchers continue to make
significant breakthroughs?
The development of blue LEDs is a
textbook case of university research
leading to commercialisation of products. Amid Japans prolonged economic
stagnation, this sort of co-operation has
been crucial for companies wary of
investing in risky endeavours with no
guarantee of success.
The government is supportive of
academia-industry collaborations. This
year, the governments Council for Sci-

ence, Technology and Innovation

launched a programme called ImPACT,
which stands for Impulsing Paradigm
Change through Disruptive Technologies. The council has selected 12
research themes including rescue
robots and organic materials that are
stronger than steel and has assembled
researchers from academic institutions
and the corporate sector.
The government will also establish
the Japan Agency for Medical Research
and Development next April to support
breakthroughs in pharmaceuticals and
medical equipment. Research budgets
related to the life sciences, currently
handled by multiple government
offices, will be consolidated.
Japan has few ventures of the same
calibre as US start-ups, which frequently discover drug prototypes before
passing them to big pharmaceutical
companies. The new agency may help
fill this gap by developing drugs using
leads from university laboratories.
This years Nobel Prize shows not only
what co-operation between academia
and industry can achieve, but how times
have changed. After Isamu Akasaki and

Hiroshi Amano came up with the basic

technology for blue LEDs at Nagoya University in the mid-1980s, they launched
a joint research project with Toyoda
Gosei, an auto parts maker. The Japan
Science and Technology Agency supported the project, which aimed to put
the innovation to practical use.
Separately, Shuji Nakamura devised a
mass-production method for a highbrightness blue LED at Nichia Chemical
Industries.
When Japans economy was booming,
scientists could drum up funds for all
sorts of research seen as having commercial potential, on top of what they
received from universities or other
institutions.
But as corporate and government
purse strings have tightened, funding
has become far less available.
Today, the Japanese government
emphasises research that promises significant benefits to industry and society.
This principle tends to guide public
budget allocations for national universities. While considerable amounts of
money are devoted to endeavours
expected to bear such fruit, there is not

Phones will replace wallets

with the next iteration of
contactless payments, reports
Jennifer Thompson
When it comes to everyday banking,
Japan is a paradox. The country has
some of the most advanced infrastructure in the world but remains a cashbased society.
Many Japanese choose to pay utility
bills with hard currency at convenience
stores. Restaurants and small businesses often only accept cash. And it is
not uncommon to see foreigners venting their frustration when they discover
that they cannot use most cash
machines, but are restricted to those
operated by the post office or international banks.
Despite this apparent reluctance to
embrace new banking practices, the
Japanese were early adopters of contactless payments and the tap-and-pay
technique with a smart card.
Now a new form of that technology is
beginning to emerge. Banks and telecoms companies have been predicting
that a global cellphone payments revolution is just around the corner, with the
mobile phone replacing both the wallet
and the smart card.
However, the revolution is proving
rather slow to get going. While the system of using pre-paid smart cards that
can be tapped against readers has taken
off in many countries, using a handset to
do the same has yet to catch up. This is
mainly because of the complexity
involved in such an undertaking.
It not only demands co-operation
between the telecoms companies
providing the service and the manufacturers making the phone handsets, it
also requires input from the financial
companies involved and technology
experts to ensure that the transactions
are safe and efficient.
Part of the problem is that too many
people are looking for their piece of the
pie, adds David Gibson, an analyst at
Macquarie in Tokyo.
Things were more straightforward

for the smart card payment systems.

FeliCa, one such service developed by
Sony, became a key part of the Japanese payments landscape more than a
decade ago.
FeliCa began life in 1988, and was
developed for use on public transport
services. Prototype swipe cards
appeared the following year, and by
1990 their use as a replacement form
of train ticketing was becoming widespread.
With the Japanese market for mobile
phones growing, Sony decided to look at
putting FeliCa technology inside handsets. It found a valuable partner in NTT
DoCoMo, the countrys biggest telecoms
company, with a 60 per cent market
share. And NTT was looking for new
mobile services to offer customers.
Not only were the Japanese enthusiastic early adopters of mobile phones,
NTT was also the first provider in the
world to launch a comprehensive internet service on the devices in 1999.
At the turn of the millennium,
NTT DoCoMo and FeliCa formed a joint
venture named FeliCa Networks to

Today there are about

60m FeliCa-enabled
mobiles in the country
implement mobile payments services in
Japan. Other telco providers and handset makers were soon included in the
agreement, paying to implement FeliCa
technology themselves so they were not
left behind.
Today, there are about 60m FeliCaenabled phones in Japan, providing
access to some 100 services, according
to Sony research.
The question now is how far Apple
Pay will disrupt the Japanese payments system. In October, Apple
unveiled its new mobile payments
service and digital wallet, Apple Pay.
This allows customers to use their
iPhones to pay for certain products,
instead of using cash or bank cards.
Mr Gibson says that at the end of the
first quarter, 8.1 per cent of all users of
iOS (the Apple operating system) were
in Japan, making it the third-

falling behind in terms of its volume of

published scientific papers.
Some scholars warn against taking a
single-track view of science the idea
that basic research is followed by
applied research, which in turn is followed by commercialisation. Akiyoshi
Wada, professor emeritus at the University of Tokyo, makes a distinction
between pure research aimed at elucidating the essence of nature and society,
and applied research that leads to solutions to specific problems.
Research aimed at comprehending
nature can produce practical innovations, just as seeking solutions to specific problems may lead to a broader
understanding of the world. The crux of
Japans challenge is to find ways to revitalise basic research.
The government council has started
discussing a new five-year plan for science and technology, to take effect in
2016.
People such as Prof Wada will be hoping the council can balance academia
and industry and devise an unconventional policy that will allow both to
flourish.

Determined:
Isamu Akasaki
(left) and Hiroshi
Amano Kaz
Photography/Getty

Successors lack the necessary insight

to nurture talent and innovation

Early adopters ring

the changes with
payment revolution
Mobile banking

Emphasis
on strategic
areas could
erode the
foundations
of Japanese
science

much left over for research regarded as

less crucial. This naturally directs scientists into a few select fields where they
are likely to produce practical results.
Given budgetary constraints, it is
understandable that the government
focuses its investments only on strategic
areas. There are, however, side effects of
this strategy.
More researchers now waver when
they feel they lack a concrete purpose,
says Yuichiro Anzai, head of the Japan
Society for the Promotion of Science and
a former president of Keio University.
There is, he adds, a worrying tendency to change the direction of
research for the express purpose of
obtaining more state funding.
Prof Akasaki and his fellow Nobel laureates developed blue LEDs by sticking
to their guns. If researchers lose their
sense of mission or feel compelled to
change course midstream, they will be
less likely to produce true innovations.
The emphasis on strategic areas
selected by the government could subtly erode the foundations of Japanese
science. The number of researchers is
already on the decline. Japan is also

Management

Smartphones: tapping a new market

biggest market for Apple after the US
and China.
He believes Apples mobile phone
payments service will eventually be
rolled out in Japan, but the big question
is whether it can compete with FeliCa in
terms of speed.
If youre going through Shinjuku, one
of the busiest train stations in the world
and you have to wait for a second, its not
going to work at all, he says.
One criticism often levelled at Japanese business is that manufacturers
focus on adapting innovative ideas for
the domestic market, and place less
weight on selling their ideas abroad.
However, Sony highlights the successful, early, export of FeliCa technology to
Hong Kong, where it won a tender to
provide the plastic Octopus smart cards
in the 1990s, originally for the territorys
rail system.
Octopus cards are now used across
Hong Kongs public transport networks
and as prepayment smart cards for a
variety of other purchases, from fastfood restaurants to photo booths and
parking metres.
Industry insiders note that it would
have been virtually impossible to
develop a mobile phone payments service from scratch anywhere but Japan.
There are so many players and there
was no standard technology available in
the market in 2000, says Masayuki
Takezawa, deputy general manager of
FeliCa at Sony.
Indeed, factors unique to Japan its
tech-savvy customer base and historically strong relationship between telecoms providers and handset makers,
which resulted in the creation of FeliCa
Networks were the ingredients that
have made the system work.
It is not clear, however, whether such
factors will enable Japan to win in the
coming mobile phone revolution.

Top executives tend to focus

on cost competitiveness
rather than innovation and
businesses shrink as a result,
says Masanori Murui
In New York, a silver-haired businessman was getting into the car that had
been sent to fetch him. He had with him
a sheaf of reports so thick that he could
barely carry it. As the car bounced along
the busy streets, he rapidly sorted
through the documents, selecting some
and handing the rest to his assistant. By
the time he reached his destination, he
had finished perusing the material.
This man was Akio Morita, the late
founder of Sony, who turned the company into a global powerhouse. A
former Sony executive who witnessed
Moritas working habits firsthand
revealed the secret of his efficiency:
Mr Morita did not read all of the
reports. He read only the headings,
which included the title, and chose
reports based on who had submitted
them.
This was because he always knew
who was doing which jobs and who
could be trusted, he says.
One of Moritas talents was knowing
all about his companys top innovators
and the work they were doing.
Sony has long since lost its reputation
for innovation. These days, it is more
associated with restructuring than with
inventing must-have products. Moritas
knack for quick decision making offers

a clue about what has been lost and

about how the one-time epitome of Japanese innovation could regain its edge.
Sony was able to make interesting
products and successively embark on
new businesses in Mr Moritas day
because the company had leaders who
knew talented people in the organisation and could put them to the best use,
the former executive recalls.
This is not an easy task for Sonys
current leaders. The reason: as the
companys organisation becomes more
complex, innovators become harder to
spot. This is a concern not only for top
executives at Sony, but for those in
many Japanese companies.
Nomura Research Institute conducted a survey of companies asking
which talents make someone an innovator. Many top executives listed imagination and a knack for focusing on goals as
necessary traits. Innovators themselves,
however, gave quite different answers.
In the survey, people including those
who devised i-mode, NTT DoCoMos
pioneering mobile internet service,
emphasised traits such as the power of
observation, curiosity and willingness
to endure trial and error processes.
For top executives who have never
started a business, it may be difficult to
understand the minds of innovators,
Akio Morita, the
founder of Sony,
knew his workers
potential and could
put it to the best
possible use

says Hikojiro Isozaki, a consultant at

Nomura Research Institute.
Through such experience, managers
improve their business sense and know
when to say, We must stick with it, even
though were in the red, or, This is the
time to give up. If top executives are not

strongly aware of such things, they

cannot find and nurture innovators.
At influential companies such as
Sony, once seen as a symbol of postwar
Japans rebirth, few founders remain
in top executive positions. Their successors now have to compete with
companies in South Korea and China,
such as Samsung and Xiaomi, as well
as with rivals in western countries.
Todays top executives, who think only
in the short term, tend to focus on
cost-competitiveness. Doing so, however, has mostly resulted in shrinking
business.
After the global financial crisis in
2008, Hitachi reported a record consolidated net loss for a Japanese manufacturer. The company later concentrated
its management resources on its social
infrastructure business, including the
environment, energy and transport.
Since then, earnings have recovered
sharply.
During that time, Hitachi not only
selected and focused on certain businesses, but also implemented corporate
reform to collect optimum human
resources, make optimum teams and
allocate people to optimum positions,
according to Hidenobu Nakahata, vicepresident at Hitachi, who heads the
companys human resources strategy.
As a first step, the company created a
personnel database covering all its
employees around the world, enabling it
to evaluate workers based on common
global standards. It also eliminated the
seniority-based promotion system, an
entrenched characteristic of Japanesestyle employment.
Many Japanese companies have been
criticised for failing to manage talented
employees and technologies effectively.
This suggests there is plenty of potential
to be uncovered. To achieve that,
insightful leaders are more essential
than ever.

Contributors
Ben McLannahan
Tokyo correspondent
Kana Inagaki
Tokyo correspondent
Junichi Taki
Nikkei senior staff writer
Jennifer Thompson
fastFT Reporter Hong Kong
Masanori Murui
Nikkei senior staff writer

Keiichi Murayama
Nikkei senior staff writer
Demetri Sevastopulo
South China correspondent
Lindsay Whipp
Assistant news editor
Emma Boyde
Commissioning editor

Steven Bird
Designer
Andy Mears
Picture editor
For advertising details, contact:
Michiko Hayashi, + 81 3 3581 2097 and
michiko.hayashi@ft.com.

Monday 8 December 2014

FINANCIAL TIMES

Japan Technology & Innovation

The ghost in the machine gets smarter

Robotics Outside
investors seek to
monetise opportunities,
in rescue, healthcare
and reconnaissance,
reports Kana Inagaki

hen Google last year

bought a tiny start-up
founded by two Japanese robotics engineers,
it served as a rude
awakening to the threat Japan faces.
New technology companies, including Apple and Amazon, show a rising
interest in owning robotics technology.
You dont have to worry about the
money. You only have to focus on changing the world, said Andy Rubin, head of
Googles robotics division at the time of
the purchase. But Googles investment
was crucial to the start-ups survival and
breathed new life into Schaft and its
two-legged robot project.
Schaft was founded by professors of
the prestigious robotics lab at the University of Tokyo, who spent a gruelling
year searching for investors in Japan
before Google extended a lifeline.
The companys clunky humanoid
robot, designed to operate in disaster
areas, was mocked and written off by
the government as well as several Japanese tech and venture capital companies, according to Takashi Kato, the
former chief financial officer of Schaft.
The fundraising was an utter failure,
but that allowed us to make up our mind
and go to the US, recalls Mr Kato, the
entrepreneurial investor who helped
negotiate the deal with Google.
Though few in Japan saw commercial
potential in Schaft, its robot won an
advanced robotics competition sponsored by Darpa, the US defence technology agency, in late 2013.
It was a demonstration by Schaft
along with Hondas Asimo that President Barack Obama came to see during
his visit to Japan in April. In the US,
research into disaster-relief robots is
often richly funded by the military. It
was US-made reconnaissance robots

deployed during the Fukushima nuclear

accident in 2011 that prompted Schaft
to develop its own robot that can withstand disaster conditions.
In addition to military interest with
recent advances in artificial intelligence
and drone technologies Silicon Valley
companies are starting to see profitable
civilian uses for robots.
So is Japan. Following the Schaft sale
to Google, Prime Minister Shinzo Abe
pledged to make robots a key pillar of
his growth strategy. His goal is to triple
the domestic market for robots to
Y2.4tn ($20bn) by 2020. The worldwide
market for industrial robotics systems is
about $29bn currently, according to the
International Federation of Robotics.
Taking their cue from government,
Japanese technology giants, including
Panasonic, Toshiba and Sharp, are honing their robotics skills. The companies
are working on robotic suits, a humanoid with fingers nimble enough to do
sign language, and cleaning robots that
can talk in several languages.

Here to help: (left to right) prototype

humanoids created by Asratec,
Toshiba, Alderaban and Schaft are
designed for use in construction,
domestic work and (below right)
disaster relief

The prime minister has

pledged to make robots a
key pillar of growth

Animated bears and bunnies

score a hit with big business
Start-ups

A chat-app sensation and a

video-sharing site show that
cute conquers all especially
when backed by venture
capital, says Keiichi Murayama
For every 100 Japanese businesses, five
go bankrupt each year and five new ones
open their doors. That is about half the
comparable figures in the US and the
UK. In short, Japan has a slow business
metabolism.
True, that metabolism sped up a bit in
the 2013 financial year, when investment in venture businesses rose 80 per
cent year-on-year to reach Y182bn
($1.55bn at todays exchange rate). But
that is still only about 6 per cent of the
amount invested in start-ups in the US.
Not surprisingly, spurring entrepreneurial activity has become an important element of Abenomics (the name
given to a government stimulus package
introduced by prime minister Shinzo
Abe). Also important is fostering tie-ups
between start-ups and large, established
corporations.
Two IT ventures that exemplify the
potential success of this strategy are
Line, the Tokyo-based operator of a call
and messaging app, and Dwango, which
through its subsidiary Niwango operates the Niconico (Smiley Smiley)
video-sharing website.
Both Line and Niconico are
immensely popular, and the companies
that run them are expanding abroad in
ways that highlight Japans strengths
when competing on the global stage in
IT: cuteness or, to use the Japanese term
that is gaining recognition worldwide,
kawaii.
Many countries are helping drive the
global IT revolution, including the US,
China, South Korea, Israel and India.
But Japans contribution is unique. Its
offerings are soft and fuzzy, melding
technology with animation, games and
other elements of Cool Japan.
Take Line: the number of people
using the Line app has grown to 560m
since the service launched in 2011. Its

Akira Morikawa: its about emotions

users have spread beyond Japan to other
parts of Asia and the west, including
Thailand, Indonesia, India, the US,
Spain and Mexico.
When the company held a press conference at the Tokyo Disney Resort in
October to present its business ventures, costumed characters danced to a
special song created for the event.
The characters in question Brown
the Bear and Cony the Rabbit are
familiar to anyone who uses the Line
app on their smartphones to exchange
messages. The characters appear on
many of the stamps, or virtual stick-

Japans contribution is
unique: soft and fuzzy,
melding technology with
animation and games
ers, that users can purchase to place in
their messages.
At the October conference Akira
Morikawa, Lines chief executive,
sought to explain the popularity of the
stamps, which have become a cash-cow
for the company. Communications
have shifted. It is not just about the
exchange of information any more, but
also emotions, he said. The stamps are
a universal language.
Leveraging its smartphone app, Line
has partnered with an array of companies in several sectors. It has teamed up
with Mizuho Bank and Sumitomo Mitsui Bank for a payment system, with
Sony Music Entertainment and Avex

Digital for a subscription-based music

streaming service, and with publishers
Kodansha and Shogakukan for distributing online comics and other content.
The main feature of the Niconico
video-sharing site is that it allows viewers to post comments on the video as it
plays. Combining streamed video and
social media is meant to foster a feeling
of community among users.
For Nobuo Kawakami, Dwango chairman, the starting-point is his desire to
build the antithesis of Google. If Google
is all about algorithms and data analysis, Mr Kawakami prefers to see the
world as filled with subcultures and
open to inconsistencies, a view perhaps
informed by his stint as an apprentice at
Studio Ghibli, a cult animation house.
Niconico now has 43m subscribers,
including 2.3m paid-for accounts, and
a growing fan base. Its main store in
Tokyo, where it showcases entertainment fusing the online and real worlds,
features a studio for live broadcasts
and a caf. Niconico also scheduled a
participatory event for users in Singapore in early December, and plans
similar get-togethers to spread
Niconico culture abroad.
In October, Niconicos owner,
Dwango, merged with Kadokawa, a
publishing house that has been in business since 1945. Kadokawa had previously had success with the Kagerou
Project, which produced novels and animation based on music posted on
Niconico. The merged company will try
to reproduce that winning formula.
The merger is symbolic of a trend in
Japan in which start-ups and large corporations co-operate in pursuit of innovative ideas.
In September, the Ministry of Economy, Trade and Industry supported the
business equivalent of a speed-dating
event in Tokyo: 447 start-ups and 97
big companies participated in the socalled Tokyo Innovation Leaders Summit. Many large companies including
some of those that attended are
increasingly worried about their ability
to create new value on their own.
For some, co-operation with start-ups
is a potential solution. According to
Japan Venture Research, in the first nine
months of this year, nine of the top 30
biggest-spending venture capital companies were corporate VC firms.
Japans business metabolism may
not yet be quite as fast as that of the US,
but beneath the surface something
may be stirring.

Japanese companies are also banking

on robotics to play a role in sales amid
the decline in traditional consumer
electronics such as televisions and personal computers. They have high hopes
of the healthcare and motor manufacture sectors.
But its hard for innovation in robotics to occur at big companies, says
Yukio Honda, professor of robotics at
the Osaka Institute of Technology.
Experts say that new technologies
often entail safety risks that could
damage a companys brand. To avoid
this, they are prepared to
spend years or even decades on development before
a mass market launch.
And even after a series of tests,
those risks are often bigger than
the revenue gains expected from the
products, says Mr Honda, who left
Panasonic in 2012.
Panasonics robotic bed that turns
into a wheelchair, for example, cleared
an international safety standard for care

robots earlier this year, reducing liability risks for the company. But the product does not necessarily use cuttingedge robotics technology and it requires
the manual assistance of a helper to
move the patient on to the bed.
Some technological compromises
were made to meet safety and cost concerns, officials say.
So much is unknown about new care
robots, including the risks, says Hideo
Kawakami, who headed Panasonics
robotic bed project.
Panasonic is not alone in betting on
the future of nursing care robots as
Japan grapples with an ageing society. In
October, Toshiba unveiled its prototype
of a human-like robot that can smile and
blink, dressed in a pink blouse and a
white skirt.
By 2020, the company hopes this
machine will be able serve as a companion for the elderly and people with
dementia.
Robotics are part of Toshibas plan to
increase its healthcare sales to $8.5bn
a year by March 2018, from $3.4bn
currently. But the company has been
engaged in robot development since at
least the 1980s without the release of a
successful mass-market product so
far, beyond industrial use.
Japanese companies often win in
technology but lose in business, says
Mr Honda.
Still, there are some encouraging
signs of innovation being unveiled by
big companies and university labs
through spin-offs. At least three startups have been established by former
members of the Sony team that worked
on the Aibo robotic dog.
Mr Abe has said he wants to transform Japan into a powerhouse brimming with the entrepreneurial spirit.
But the financing challenges that Schaft
faced also underscore the cultural
stigma still attached to people leaving
established firms to set up their own
companies.
Mr Kato says: Smart and tech-savvy
people will flee to Silicon Valley if they
continue to face hurdles in the Japanese
market. A person frowned upon in
Japan could suddenly be treated like a
god in the US.

FINANCIAL TIMES

Monday 8 December 2014

Japan Technology & Innovation

Start-up scene begins to gain traction after slow start

Venture capital

One of the seven pillars for

shaking up the economy is
to make life easier for risk
takers, says Ben McLannahan
Yusuke Mitsumoto had a good idea: a
website for small businesses to create
their own online stores instantly, without the hassle of hiring design experts or
trying to get up to speed themselves.
But what he did not have was much
money to pursue it. So when the 27 yearold quit his job in advertising in late
2008, he spent months appealing to big
Japanese venture capital (VC) firms
such as Jafco and captive funds attached
to big companies only to be turned
down every time.
He also trooped around banks, which
said they were not interested in taking a
punt on a business with no assets or revenues and certainly not in the depths
of the global financial crisis.

In the end he gathered enough cash to

go it alone, developing a self-financing
business that grew into Bracket, a 30employee company based in the trendy
Tokyo district of Shibuya.
Last summer he sold up in a stock-forstock deal to an ecommerce group
called Start Today, listed on the first section of the Tokyo Stock Exchange.
Starting out was really hard, recalls
Mr Mitsumoto, who is now 33. The VCs
were all really conservative. And
although I was willing to provide personal guarantees to the banks, there was
no trust towards new companies.
His experience is not unusual.
Entrepreneurs often say they struggle
to get up and running in Japan, where
equity investors tend to be cautious and
debt investors like to see collateral and
personal guarantees from the borrower.
Even if a fund supplies equity capital,
valuations of businesses are typically
much lower than in Silicon Valley.
That results in big gaps in funding.
Last year a survey by a state-backed
bank found that entrepreneurs had an
average of Y2.3m ($20,000) in savings

when starting out well short of the

Y6.2m they said they needed.
The government knows things need
to change.
One of the ruling Liberal Democratic
Partys seven pillars for shaking up
the worlds third-largest economy is to
make life easier for risk-takers.
Among the top measures are simplifying tax procedures for angel investors,
rationalising the system of personal
loan guarantees, and changing laws to
allow crowdfunding. From April next
year, ventures should be able raise up to
Y500,000 from each investor, up to a
total of Y100m. At the same time, the
government recognises that Japan lacks
venture capitalists qualified to provide
hands-on support a problem that
training and inviting foreign
experts could help resolve, according
to a policy plan published in June.
The quality of homegrown VC executives can be abysmal, says Russell
Cummer, chief executive of Exchange
Corporation, a Tokyo-based financial
services group that has raised cash from
funds including CyberAgent Ventures of

Loans for start-ups and

new projects
Total amount
outstanding
(bn)

Cases (000):
Regional banks
Shinkin banks &
credit co-operatives
20

250
200

15

150
10
100
5

50
0
2003 05

0
10

13

Source: Bank of Japan

Japan and Hong Kongs Arbor Ventures.

Some have lots of money but no idea
how to invest, in what can be very
human-capital intensive businesses.
Industry insiders say the situation is

improving, thanks in large part to a

cluster of experienced firms such as
CyberAgent, SBI Holdings and Digital
Garage, and characters such as
Takafumi Horie, a disgraced tycoon
now reinventing himself as a start-up
guru. Business accelerators have also
sprung up around Tokyo and other big
cities, typically offering Y5m of seed
money and some logistical support.
On the debt side, too, there is
progress. The latest six-monthly report
by the central bank on Japans financial
system, published in October, shows a
steady rise in loans to start-ups. The BoJ
says that the easing of credit standards
can be explained by banks aversion to
accumulating expensive government
bonds in lieu of loans, and a growing
awareness of the importance of finding
future sources of revenue.
I think the current situation is much,
much better, says Mr Mitsumoto, noting recent rapid growth in web- and
mobile-based businesses, in particular.
When I started, there were really very
few people who knew about Twitter or
Facebook.

Hope is that
more women in
the workforce
will raise growth
Equality The targets for female participation are
worthy but ambitious, reports Demetri Sevastopulo

hen Eikei Suzuki took

time off work following
the birth of his first
child, it made national
news in Japan. In joining the 2 per cent of Japanese men who
take paternity leave, the young politician became only the second prefectural
governor to take that route.
Prime Minister Shinzo Abe wants
more men to follow the example of Mr
Suzuki who belongs to the cadre of
elite Tokyo University graduates who
have historically sacrificed time with
their families for their careers as part
of his policy to promote women in the
labour force.
Mr Abe has made womenomics a
core part of his Abenomics policies, in
the hope that bringing more women
into the workforce will raise Japans
growth potential. His supporters say he
is giving women the kind of public support that has long been missing in Japan,
while critics say his measures to make
women shine are simply vague policies without any teeth.
Kathy Matsui, the Goldman Sachs
strategist who coined the term womenomics, gives Mr Abe B-plus for his
efforts. She says it is important that he
has set targets such as aiming to have
women occupy 30 per cent of senior
managerial roles by 2020 even if they
are very ambitious.
She adds that, since Mr Abe came to
power, 750,000 women have joined the

labour force, boosting the female participation rate by 3 percentage points to 64

per cent, which is some evidence of
progress.
Keiko Takegawa, head of the gender
equality bureau in Japans cabinet office,
says the government is striving to bring
the 3.15m women who want to work but
are not employed into the workforce.
Citing figures from the IMF, she says
Japan could increase its per capita gross
domestic product by 8 per cent by
boosting its female labour force participation rate to the same levels as seen in
northern Europe.
The government has introduced
numerous measures, ranging from
efforts to expand childcare places to
urging companies to place at least one
woman on each board. In doing so,
it hopes to increase the proportion of
Japanese women who rise to become
kacho, section chief, or to fill more
senior positions.
Machiko Osawa, head of the Research
Institute for Women and Careers at
Japan Womens University, says women
hold only 11 per cent of managerial positions in Japan, compared with 43 per
cent in the US and 39 per cent in the case
of French women.
That difference was highlighted when
Christophe Weber, a Frenchman,
became the first foreign president of
Takeda Pharmaceutical this year. He
said: This is the first time that I dont
have a woman in my team. He has

A long way to go:

where are all the
salarywomen?
Bloomberg/Tomohiro
Ohsumi

spent most of his career at GlaxoSmithKline, where five out of 14 current board
members are women. Gender equality
is a topic across the world, but Japan is
not at the front of the pack. Its more at
the end.
One reason for the lack of women in
senior roles is a male-dominated corporate culture that is much slower in
accepting women than other developed countries are. Ms Osawa says
that half the Japanese women who quit
their jobs said they did so because of a
dead-end feeling.
But for others, the problem is a lack of
childcare. On that front, Ms Takegawa
says progress has been good. The government hopes to eliminate long waiting lists by 2018 by adding 400,000
nursery school places. She says Japan
has added 190,000 places towards an
interim goal of 200,000 by April 2015.
This year, childcare benefits were
raised from 50 per cent of your last wage
to 67 per cent, and for both mothers and
fathers for six months. The government
wants to change the tax code, which
effectively penalises women who return
to work after childbirth.
It has also created a scheme called
Nadeshiko Meigara which rewards companies that provide a more welcoming
workplace for women. But the length of
the road ahead is illustrated by the fact
that only 26 listed companies, including
Nissan and Hitachi, made the grade.
While Mr Abe wants corporate Japan

For women
to advance,
there has to
be a
change in
perception
among the
older
generation

to make changes, the government itself

has a long way to go.
Only 11 per cent of national politicians
are women, and only 3 per cent of senior
civil servants are women. This is the
area where we ourselves have the biggest headache, says Ms Takegawa with
a laugh.
She says part of the problem is that
parliament holds so many sessions for
politicians to grill the government that
bureaucrats must work late into the
night to prepare the answers.
While some welcome the push, others
are less impressed. Noriko Hama, an
economist who dubbed Mr Abes signature policy Ahonomics in a play on
the Japanese word aho which means
fool says the policies lack detail and
focus on elite women.
She says a more vulnerable group is
single mothers trying to make ends
meet on low-paid jobs in black companies.
Sahoko Kaji, an economist at Keio
University, says the government has
introduced few concrete measures. She
thinks things will change in the workplace only after a big cultural shift.
There is only so much that Mr Abe
can do, says Ms Kaji.
For women to advance, there has to
be a significant change in perception
among the older generation.
Additional reporting by Kana Inagaki and
Nobuko Juji

Portable rooms and face exercisers look set to win fans

Consumer goods

Recent inventions show the

enduring appeal of quirky
but ingenious products,
writes Lindsay Whipp
Some recent inventions serve as a
reminder that Japans appetite for the
extraordinary remains undimmed.
The phenomenon of hikikomori
young people who stay in their rooms
for months, or even years, and live their
lives predominantly online has
prompted reams of research that
focuses on the problem, but it has also
inspired one fashion designer.
Recognising the tendency in himself,
Keisuke Nagami developed the theme of
a portable room for his clothes, aiming
to take the snug, cocoon-like existence
of being holed up in an inevitably small
urban Japanese apartment out on to
the streets.

Mr Nagamis Kotatsu Parka takes his

portable room concept to a whole new
level. The kotatsu dates back to the 14th
century and is a low table with a heating
source beneath it and a quilted cloth sitting between the table top and its leg
frame, extending over the laps of those
seated around it on the floor.
In Mr Nagamis take on the traditional
concept, four specially designed parka
jackets, which can be zipped together to
form a sort of wearable kotatsu although
it is made from a stretchy, yet waterproof, material, rather than the quilted
fabric that is usually employed over the
kotatsu.
Mr Nagamis Hatra brand developed
the Kotatsu Parka through a collaboration with textile maker Kaytay Texinno,
bag designer Yusuke Kagari and stylistcurator Mikiri Hassin. The garmentcum-table warmer can be purchased for
Y255,000 ($2,150).
Meanwhile, a completely different
Japanese consumer product, which is
supposed to exercise facial muscles,

caused a stir online this year when it was

endorsed by Cristiano Ronaldo. The
top-ranked professional footballer
appeared in Japanese-only advertisements for the Facial Fitness Pao.
Finally, I can train my facial muscles, he claims in the print version,
though he manages to avoid being
filmed actually using the strange-looking product in the commercial.
MTG, the Japanese beauty-product
maker behind Facial Fitness Pao, claims
the device builds up facial muscles
around the mouth that are essential for
keeping a youthful smile.
The product has a mouthpiece and
two flexible bars with weighted ends
that protrude either side, and swing vertically as the user bobs his or her head
up and down. The company recommends a 30-second exercise twice a day.
Although the product looks amusing
and has attracted humorous comments
as well as doubts about its efficacy, sales
have been strong. according to MTG.
Four months after its launch the com-

pany says that it has sold 300,000 Facial

Fitness Paos, more than it had expected.
MTG says it developed the Pao using
research on facial muscles presented by
Tokyo University, one of Japans most
respected educational and research
institutions.
MTG says that the lines around the
mouth are the most susceptible to the
ageing process and that the average person only uses about 30 per cent of their,
roughly, 40 facial muscles.
Popular innovations are often laboursaving devices and, with that in mind,
Lotte, the Japanese-Korean conglomerate, is developing a product that could
help users change the tune on their playlist without using their hands.
Lottes project is the Rhythmi-Kamu
(a combination of the English word
rhythm and kamu, the Japanese for
bite). Still at prototype stage, the Rhythmi-Kamu uses a sensor device invented
by Hiroshima City University professor
Kazuhiro Taniguchi, which reads facial
muscle movements.

The sensor, when inserted into Lottes

specially designed earphones, also
tracks biting and chewing habits and
sends the information to a smartphone
app that will analyse and visualise the
patterns it has recorded.
The device will not only help people
better understand the health benefits to
be gained from chewing, says Lotte, but
also, with some careful and precise biting, enable them to control what they
are listening to on their playlist.
The sensor is already being used in a
public-private partnership project
monitoring the daily lives of elderly participants in Hiroshima.
With Japan being one of the fastestageing societies in the world, there is an
increasing focus on how technology can
contribute to older peoples health.
Lotte hopes that data gathered by the
Rhythmi-Kamu will prove useful for
research in fields including medicine,
sports, beauty and education.
Additional reporting by Nobuko Juji

Titans fight
back and
boost returns
to investors
Continued from page 1
. . . the list went on.
But analysts say there are significant
reasons why this new wave of restructuring could last.
They refer to pressure from the
administration of Shinzo Abe, prime
minister, for companies to raise shareholder returns. Corporate governance
was put at the core of the governments
latest growth strategy this year, with
policy makers pushing three overlapping initiatives.
The first, a new equity benchmark
the JPX-Nikkei 400 was launched in
January to steer funds towards companies with above-average returns on
equity and a good record of treating
shareholders fairly.
The second, a new stewardship code
for institutional investors which came
into effect in April, was designed to
encourage historically standoffish institutions to challenge investee companies
on thorny matters such as low dividends
and a lack of independent directors.
More than half of 160 sign-ups so far
say they have accepted all seven principles of the code, notes Yoshihiro Tanaka, an executive director at Asuka
Asset Management in Tokyo, indicating
that they are sending a strong message
to executives.
The third initiative Japans first ever
corporate governance code, for companies themselves to sign up to should be
ready by the summer of 2015. The code
should serve as an ignition key
towards a change in corporate culture,
says Mr Tanaka.
A further catalyst for action is the
weaker yen. In the two years from midNovember 2012, the Topix electric
appliances index has more than doubled, adding Y24.7tn ($209bn) in market capitalisation, according to Bloomberg data. That is testimony to the
power of the currency to boost the profits of Japans companies, as dollardenominated exports and earnings
overseas are converted to yen.
Over the first half of the current financial year to March 2015, only the con-

Y24.7tn

Y15.5bn

Topix electric
appliances index
growth over
two years

Amount added to
Nintendos firsthalf profit by
weaker yen

struction sector boosted by publicworks spending and projects related to

the 2020 summer Olympics delivered
better increases in recurring profit than
the electrical equipment sector, according to Mizuho Securities.
The tumbling yen is no panacea, of
course. Many have discovered that
more competitive prices, at least on a
dollar basis, do not instantly translate to
better sales volumes.
Some of the notable laggards of the
Abenomics-fuelled market since late
2012 include JVC Kenwood, Pioneer
Corp and Sharp. Hitachi Maxell and
Japan Display formed from cast-offs
from Sony, Toshiba and Hitachi both
made lukewarm initial public offerings
this year, and have since struggled to
come close to their opening prices.
Nintendo, the Kyoto-based maker of
video games and consoles, is another
subpar performer. It said in late October
that a weaker yen added Y15.5bn to its
first-half profit equivalent to almost 80
per cent of the annual net income it is
forecasting.
But its latest quarter was still
wretched in terms of revenues, with falling sales in all software categories and in
every hardware category bar the Wii-U.
For inspiration, the laggards could
look to Panasonic, whose shares have
tripled in the two years since Mr Tsuga
took the helm.
Last month R&I, one of the top Japanese rating agencies, upgraded the company to a single-A from single-A minus,
noting shrinking deficits in flagging
businesses, solid free cash flow generation and an improving equity ratio.
And in recent public statements, Mr
Tsuga said he was considering acquisitions to improve the groups position in
the auto parts and white goods market
actions that would have been unthinkable a few years ago.

fm

THE AUTHORITY ON GLOBAL FUND MANAGEMENT | FINANCIAL TIMES | Monday December 8 2014

Cheap oil
View from the US
PAGE 8

Threat to
high-yield bonds
PAGE 10

Greek radical left spooks

global bond investors

Pay of FTSE
100 CEOs
jumps 50%

Syriza eyes snap

election in March

SOPHIA GRENE

MADISON MARRIAGE AND KERIN

HOPE

Investors are increasingly worried

about the outcome of Greeces forthcoming presidential election, which
could enable radical leftwing party
Syriza to take power in March.
Senior Syriza politicians visited
London two weeks ago to present
their economic programme to a
number of large fund houses and
banks, but the meetings have
sparked anxiety among investors.
A leaked memo from Joerg Sponer,
an analyst at Capital Group, the
ninth-largest fund house globally,
with $1.4tn of assets, described the
programme as worse than communism and total chaos. Everybody
coming out of the meeting wants to
sell everything in Greece, he said.
Syriza denied that Mr Sponer was
at any of the meetings it held, but
acknowledged other Capital Group
analysts were present. Capital Group
said the memo did not represent its
universal house view.
Since the Syriza meetings, a flurry
of Greek bankers and brokers have
travelled to London to try and reassure clients. The Syriza road-trip
has made some investors quite
nervous, one of the bankers said.
A salesman at Bank of America

Alexis Tsipras, the leader of Syriza, during a protest Michael Debets/Getty

Merrill Lynch, which hosted a client
event with George Stathakis,
Greeces shadow minister for development and Syrizas economic
affairs spokesman, sent a memo to
clients after the meeting entitled
Greek Tragedy.
The memo summarised the
partys economic programme, which
includes ending privatisation, renegotiating Greeces debt with the
troika of the European Central Bank,
International Monetary Fund and
European Commission, and increasing the minimum wage and state
pension to pre-crisis levels.

The notes are quite clear and

worrisome for Greece and the [eurozone] going forward. Expect much
higher volatility in the months
ahead, the memo read.
Eleni Papoula, an analyst at Berenberg, added: The economic policies
of the opposition party did not seem
credible to the investment community of London, based on my discussions with people who were [at the
meetings].
Syrizas Mr Stathakis said of his
London visit: Syrizas [economic]
positions now have an international
audience that understands it is

essential to have a complete solution

that will make the debt sustainable
so that the Greek economy can
recover in conditions of social cohesion. Our programme is about social
cohesion, development [and] longterm investment.
If Greeces fragile governing coalition fails to attract the support of 25
opposition MPs to elect a new president in February, it will face a snap
election in March. Opinion polls currently suggest that Syriza would win
such an election.
John Paulson, the hedge fund mancontinued on page 7

The average total pay for FTSE 100

chief executives jumped by 50 per
cent in the past year, according to
analysis by Grant Thornton, the chartered accountancy firm.
Although basic salaries were virtually unchanged, there were big rises
in elements such as bonuses and
stock options.
The average basic salary for bosses
of the largest UK companies was
583,291 in 2014, but the total package, including all variable components, was almost five times that,
according to Grant Thorntons annual
corporate governance review*.
The review, based on annual
reports, said that although bonuses
have risen to 111 per cent of basic salary, from 98 per cent, the maximum
possible bonus has only climbed 6
percentage points (from 151 per cent
to 157 per cent), suggesting that this
years higher bonus payments reflect
better company performance.
The largest rise is in the value of
options realised. These have more
than doubled, increasing 128 per cent
to an average of 1.21m.
The generous bonuses of financial
services companies, worth almost
double base salary, meant the total
package for their chief executives
averaged 2.28m, compared with
just 1.62m for the chief executive of
a resources company.
*Plotting a new course to improved
governance

2 | FTfm

FINANCIAL TIMES Monday 8 December 2014

NEWS

INSIDE
The big picture
The future is bleak for
closet trackers, as
regulators and investors
take action against
falsely active funds
PAGE 6

Comment
Yuri Bender looks at a
government initiative to
ratchet up repeat
visitorship to Singapore
PAGE 8

Brussels
Report condemns the
European asset
management industry
for producing a huge
welfare loss for EU
investors
PAGE 11

Consumer report
There is a pervasive
Alice in Wonderland
scenario when it comes
to costs and fees
where nothing is quite
what it seems
PAGE 12

Viewpoint
The witch hunt for closet
trackers amounts to
price regulation, says
Jean-Pierre Casey
PAGE 13

December 8 2014

fm

Editor Chris Newlands

Tel: +44 (0)20 7775 6382
e-mail: chris.newlands@ft.com
Deputy editor Steve Johnson
Tel: +44 (0)20 7873 3525
e-mail: steve.johnson@ft.com

Compliance has become new

priesthood of financial services
REGULATION

Cost of UK regulation
hampers boutique
start-ups

Reporter Sophia Grene

Tel: +44 (0)20 7873 4685
e-mail: sophia.grene@ft.com
Reporter Madison Marriage
Tel: +44 (0)20 7873 3817
e-mail: madison.marriage@ft.com
Production Jearelle Wolhuter
Tel: +44 (0)20 7873 4872
e-mail: jearelle.wolhuter@ft.com
Advertising manager
Steven Canfield
Tel: +44 (0)20 7873 4802
e-mail: steven.canfield@ft.com
FINANCIAL TIMES
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London SE1 9HL
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The Financial Times Limited 2014.
Reproduction of the contents of FTfm in
any manner is not permitted without the
publishers prior consent. FINANCIAL
TIMES and FT are registered Trade
Marks and Service Marks of the Financial
Times Limited

A think-tank has criticised the complexity and cost of UK regulation

man of the NCI, which represents about 50 owner-managers in the UK, France and Italy,
managing 400bn of assets.
The NCI is calling for the
Financial Conduct Authority,
the UK regulator, to speed up
its complex and time-consuming authorisation process and
for the regulator to appoint
dedicated staff to provide
advice to new managers.
Compliance has become
the new priesthood of financial services. Punishment for
failure to comply can be so
financially crippling that
exceeding minimum requirements is now de rigueur, said
Mr Johnson.

He added that the FCA

should explicitly encourage
and nurture start-ups and
could do so by dropping
restrictions on pre-authorisation marketing and by lowering capital requirements for
managers that have more than
doubled over the past decade.
A spokesperson for the FCA
said that a robust and rigorous
authorisation regime was
essential to ensure investors
were protected appropriately.
We have also worked with
industry to make the fund
authorisation process more
efficient, reducing approval
times and are investing in
technology to facilitate faster

Chris Ratcliffe/Bloomberg

online applications, the regulator said.

Applications for Ucits
authorisations were typically
processed in under six weeks,
according to the FCA. Since
April, it said it had also met its
objective to reduce fund
authorisation times for all
alternative investment funds
to a maximum of three
months, due to fall to two
months from April 2015.
Our aim is to further cut
any unnecessary delay in the
authorisation process, said
the FCA, which added that it
was investing in technologies
to facilitate faster online fund
applications by 2016.

Pensions group calls for shareholder action

CHRIS FLOOD

Reporter Chris Flood

Tel: +44 (0)20 7873 3892
e-mail: chris.flood@ft.com

SOPHIA GRENE

CHRIS FLOOD

Excessive regulation is choking the development of boutique asset managers and new
wealth managers as start-ups
cannot support increasingly
onerous UK compliance costs,
according to New City Initiative, a think-tank.
The vast and growing
costs of meeting legal and compliance requirements are leading to a narrower choice of
asset managers that will prove
detrimental to the interests of
consumers, the NCI said in a
discussion paper due to be
published today.
The legal complexity of regulation has led to a doubling of
compliance officers (to 2,075)
since 2001, even as the total
number of other asset management staff has fallen by
8,500 to 37,384, according to
the organisation.
The number of UK fund
industry chief executives, a
proxy for the number of active
companies, has also declined
from a peak of 1,471 in 2009 to
1,409.
We need to see more boutique asset management firms
coming forward to ensure the
market remains competitive,
said Dominic Johnson, chair-

The National Association of

Pensions Funds is calling on
its members to vote to remove
the chairman of any company
that repeatedly fails to listen
to its shareholders if they
object to excessive pay deals
for executives.
Failure to ensure that executive remuneration is proportionate and linked to longterm performance should
prompt shareholders to vote
against the chairman of the
remuneration committee or,
in extreme circumstances, to
vote against the company
chairman, said the NAPF.
Guaranteed bonuses and
insufficiently demanding tar-

UK lags
behind
OECD
pensions

gets to justify bonus payments

along with an absence of provisions to claw back previous
payments should warrant a
vote against the remuneration
policy of a company, it said.
The association, which represents more than 1,300 pension schemes holding 900bn
in assets, is asking its members
to exercise their rights fully as
shareholders and hold individual executives and managers
of companies to account.
In an update on its corporate
governance policy and voting
guidelines due to be published
today, the NAPF will place
greater emphasis on the
importance of individual
responsibility and shareholders role in holding to account

those whom they have elected

to boards.
Paul Lee, head of investment affairs at the NAPF, said
the association was asking its
members to rise to the challenge of the UK stewardship
codeand to expect clear and
specific explanations for noncompliance.
NAPF members should
exercise their voting rights
coherently on all resolutions
to support the highest standards of governance and to
avoid abstentions on issues
where they were uncomfortable, said Mr Lee, as this was
often seen as a less damaging
outcome by company boards.
The NAPF also highlighted
the need for its members to

consider reputational issues

such as a companys approach
to tax management as well as
emerging risks such as cyber
crime and climate change.
The guidelines coincide with
a new initiative announced
last week by Vanguard, the
worlds second-largest fund
manager, to shake up relations
between company directors
and shareholders amid concerns over the quality of corporate governance in the US and
elsewhere.
Vanguard, which regards
itself as a permanent shareholder in every major company worldwide, will float the
idea of shareholder liaison
committees in letters to company boards in the new year.

UK pension funds have underperformed the developed

world average for nine of the
past 10 years, leaving savers as
muchas215bn worseoff.
Data from the OECD show
pension funds average annualised real return over the past
10 years across member states
has been 2.5 per cent. However, UK pensions shrank in
value by 0.7 per cent each year
in real, post-inflation, terms.
The figures are highlighted
in a briefing note from the
Financial Inclusion Centre, a
think-tank that identified the
underperformance and which
has calculated the hypothetical loss to UK savers.
If UK pension funds had performed on par with the OECD

215

bn
Amount by which pension
savers in the UK are worse off
than the OECD average

median, the industry would

hold an additional 215bn of
assets. If it had performed in
line with a more conservative
benchmark of inflation plus 1
per cent, savers would still
have 122bn more than they
actually do.
Both these estimates could
be very conservative, said the
FIC briefing note. We have
just used the value of assets at
the beginning of the period
covered in the analysis. In reality, significant additional contributions have been made into
pension funds by employers
and employees over the period.
So the value of the assets to
which this sustained underperformance applies would have
beenmuchgreater.
The OECD figures cover the
traditional defined benefit as
well as the smaller but growing
defined contribution pension
sectors, so the loss is spread
between individuals and corporate sponsors of pensions.
The need for higher contributions to make up for underperformance against targets
can also have wider economic
externality costs, said the FIC.
Diverting cash flows into pension fund contributions to
make up pension scheme deficits can affect wider corporate
performance and potentially
reduce resources available for
jobs and wages.

FTfm | 3

FINANCIAL TIMES Monday 8 December 2014

NEWS

Money market investors consider private funds

REGULATION

Threat of clampdown
makes unregulated
vehicles attractive
STEVE JOHNSON

Money market fund investors

are warming to the idea of
investing in private, relatively
unregulated vehicles if European regulators force wholesale change of the mainstream
cash fund industry.
EU lawmakers are debating
proposals designed to reduce
the risk of systemically damaging runs from the continents
517bn constant net asset
value money market fund sector, where funds are able to
retain a fixed 1-a-share unit
priceexcept inextremis.
Under the most recent
plans, funds would be forced to
ditch this cherished CNAV status particularly desired by
corporate treasurers unless
they remodelled themselves as
retail funds, switched to

investing predominantly in
government debt or built up a
costly capital buffer than could
be as high as 3 per cent of their
assets.
In the US, regulators have
already ruled that institutional
non-government money market funds must abandon their
CNAV status and move to a less
favourable variable NAV format by October 2016.
More than 40 per cent of the
60 attendees at a recent European cash management conference organised by Fitch
Ratings said they would cut
their exposure to money market funds if they converted
from CNAV to VNAV format.
Instead, Fitch said there was
growing interest in private

40

%
The percentage of attendees at
a recent Fitch conference who
said they would cut their
exposure to money market
funds if they converted from
CNAV to VNAV format

funds, which could potentially

sidestep any clampdown and
retaintheirCNAVstatusbyfalling outside the scope of money
marketfundregulation.
This is a relatively new area
and we understand that some
fund managers are considering such products, said
Alastair Sewell, senior director
at Fitch. This is the only area
that saw growth [in interest] in
our survey year on year.
Mr Sewell said private funds
would face a number of headwinds, such as potential constraints on managers ability to
market them, limits on the
number of investors able to
use them and a need for investors to become comfortable
with a product that potentially is less transparent and
tightly regulated than a traditional money market fund.
Nonetheless, he believed
that some investors with an
operational attachment to
CNAV funds may opt to invest
in such products anyway.

FUND FOCUS

JPMorgans European equities drift into slow lane

Manager is sticking with car and tyre manufacturers despite performance falls
JPMorgan Asset Managements
Jon Ingram has drifted into the
slow lane on his European
equity fund through bets on car
and tyre manufacturers.
The managers 247m
JPMorgan Europe Dynamic (exUK) fund fell into the third
quartile of the European fund
sector in terms of its six-month
performance, after suffering a
loss of 2.7 per cent.
Concerns about the
European recovery, amplified by
recent weak economic data, put
the brakes on returns from
holdings including Renault,
BMW, Daimler and Continental.
However, the manager is
sticking with the stocks, saying
they offer tremendous
snapback demand, long
overdue.
Renaults shares have
recently fallen back to the 64
(50.7) level they were trading
at in December 2013, while
BMWs stock has fallen 3.7 per
cent since the start of July and
Daimler is down 3 per cent over
the same period. Continentals
shares have risen 8 per cent in
the past year to 168.5, but this
is still behind the 9 per cent rise
of the MSCI Europe index.
It has just not been the right
environment to buy a brand-

new car, but as sentiment and

affordability changes, people
will begin to purchase those
cars they had deferred buying,
said Mr Ingram.
The European auto market
could follow the same pattern as
the vast US car manufacturing
sector did amid the fallout from
the financial crisis a few years
ago, he claimed.
In the US, the car market
stagnated for years, and several
of the giant Detroit carmakers
required government
assistance to survive the crisis.
During that time the average
age of cars in use in the US
reached 11 years, before a burst

JPM - Europe Dynamic

fund
Returns (rebased)
JPM - Europe Dynamic
Ex UK A Acc in GB
FTSE All-World
180
Developed index
160
140
120
100
80

2010

12

Source: Morningstar

14

of demand rallied the market as

drivers returned to ordering
new vehicles.
Currently the average age of
a car in Europe is nine years,
according to Mr Ingram. Once a
car reaches 14 or 15 years of
age, the servicing cost often
becomes more expensive than
buying a new car, he said, and
so new purchases follow.
The fund has about 5 per
cent exposure to auto
companies at the moment, with
BMW and Daimler Mr Ingrams
stocks of choice.
Elsewhere, he has taken
profits on his pharmaceutical
holdings, cutting his allocation
to the sector from 15 per cent to
10 per cent.
Mr Ingram said the stocks
had performed well, but that
pricing pressure was beginning
to come through from the US.
He has recycled that money
into telecommunications stocks,
which he previously had not
invested in.
Mr Ingram believed these
stocks were starting to see an
increased demand coming
through and that their profits
were rising.
Kathleen Gallagher is a
reporter at Investment Adviser

EU lawmakers are debating proposals designed to reduce

the risk of systemically damaging runs from constant net
asset value money market funds Patrick Seeger/EPA

In contrast, several other

alternatives to regulated
CNAV funds have fallen out of
favour with investors in the
past 12 months, Fitch found.
These include segregated
accounts, direct investment in
money market instruments
and bank deposits.
The most popular option is
what Fitch describes as cash
alternatives. These included
cash plus funds, which either
take more duration or credit
risk than conservative CNAV
vehicles; and repo-backed
products, pooled funds that
invest in repos or notes backed
by repo contracts or other collateral pools.
Some providers may
launch derivative-based funds
that manage cash through the
purchase and sale of, for
instance, interest rate derivatives. However, these funds
may be too complex for many
cash investors and will inevitably incur counterparty risk,
said Mr Sewell.

4 | FTfm

FINANCIAL TIMES Monday 8 December 2014

FACE TO FACE

Publicityshy Capital
Group finds
its voice

Capital
Group
Founded 1931
Assets under management $1.4tn
(as at June 2014)
Employees More than 7,000
Headquarters Los Angeles, with
26 offices around the world
Ownership Privately held

ROB LOVELACE

President says complexity

of the companys work
created its low profile
STEVE JOHNSON

apital Group, the troubled

yet still vast US asset
manager, is at least doing
better than the previous
occupant of its gleaming
London office overlooking Buckingham Palace.
Capital has only suffered net outflows of $250bn from its oncevaunted American Funds range since
2008 and the assets of its global institutional business have only slumped
by two-thirds to $86bn. Enron went
bust.
Yet these post-financial crisis travails have been enough to force a
rethink at the Los Angeles-based
group.
Eighty-three years after its formation, the traditionally publicity-shy
house has appointed its first-ever
public relations staff and embarked
on its inaugural corporate advertising
campaign. Being down to your last
$1.4tn seems to have that effect.
We had a low profile for a long
time because of how we manage
money; the complexity of what we do.
It is not an easy story to tell and we
wanted to let the results speak for
themselves.
But our voice was no longer being
heard out there. We did not have a
voice, says Rob Lovelace, president
of Capital Research and Management
Company and grandson of the
founder, Jonathan Bell Lovelace.
The complexity harks back to the
1950s when succession planning was
to the fore. In order to pre-empt the
kind of problems that would plague
Pimco 60 years later, Capital introduced a multi-manager system.
The results were quite different
across our funds. We said, Why dont
we have managers manage pieces of
the funds, says Mr Lovelace. It was
a temporary solution but they complemented each other. They created
smoother results and that is a model

we have kept ever since.

As a result, the average fund has
between four and seven managers,
each of whom run a concentrated

Born 1962
Total pay Undisclosed
Education 1984 Bachelors degree
in mineral economics (geology),
Princeton University
Career 28 years experience, all
with Capital Group
Started as an equity investment
analyst, covering mining and
metals, and companies domiciled
in Mexico and the Philippines
Present President, Capital
Research and Management
Company, part of Capital Group
Serves on the Capital Group
Companies Management
Committee
Equity portfolio manager

portfolio of about 40 stocks. A lead

manager checks for structural biases
across these portfolios. These are
then mulled by an investment committee, which will decide whether or
not to correct for these imbalances.
There are people making highconviction investments, but they
know when [the fund] gets put
together it is balanced, he adds.
Capitals own data suggest that, for
its core American Funds arm at least,
most of its funds have beaten their
index over most meaningful time
periods. Recent analysis by Morningstar, the data provider, broadly concurs: all of American Funds 12 equity
vehicles have had above-average performance over the past decade, while
also being well diversified and less
volatile than their peers.
Morningstar also notes the stability
that comes from portfolio managers
and analysts often spending their
entire careers at the company.
On the downside, Morningstar says
Capitals insular qualities may have
hindered its bond funds, as its managers appeared somewhat cloistered
from a rapidly changing fixed income
market.
Capital concedes the struggles of its
global institutional equity business

has been due to poor performance,

although Mr Lovelace says the problem was with just one of its three
investment teams.
He also lays a slice of the blame at
the door of increased complexity, saying Capital took on too many specialist institutional accounts that drained
portfolio managers time.
We are not taking on these types of
specialist mandates any more. The
majority of our assets are in large
funds now, Mr Lovelace says.
Capitals European workforce was
slashed by half to around 600 in a
very public downsizing, but it is
confident it has turned the corner.
Our business in Europe is dramatically ahead of plan. We have had 14
former clients rehire us in the past 18
months, says Mr Lovelace. The
worlds largest pension fund, Japans
Government Pension Investment
Fund, is believed to be among them.
On the American Funds side, he
maintains Capital never underperformed, but that the fairly dramatic outflows it suffered were triggered by losses only a little less painful than those of the underlying market in the 2007-09 crash.
The impression was that we would
not go down [in a sell-off] and we did

not do enough to dispel it. In reality

we were close to others [in performance]. We disappointed investors
expectations, Mr Lovelace adds.
In the aftermath the baby was
thrown out with the bathwater, he
argues, as investors diversified into
fixed income and commodities at the
expense of active equity managers, of
which Capital is the second largest in
the world after Fidelity Investments.
He says flows have now stabilised,
although its largest vehicle, the
Growth Fund of America, had net outflows of $6.6bn in the first ten months
ofthe year,accordingtoMorningstar.
Despite this, the fund still has
assets of $143.7bn, raising the question of whether it and Capitals other
large vehicles are simply too big to
diverge meaningfully from their
benchmarks.
Mr Lovelace says Capital is vigilant about this danger, but by investing globally and limiting each manager to $30bn, spread across at least
three funds, it has been able to keep
its funds nimble.
Our analysis shows we are uncorrelated and shockingly so, he says,
adding that size also allows Capital to
charge low fees, typically 17-18 basis
points a year for new investors.
Back in 1986, Mr Lovelace was, as a
rookie analyst, part of the team that
ran the worlds first-ever dedicated
emerging markets fund.
We were trying to raise $50m but
pension funds would say, You need to
go to our charity arm. It is a good idea,
but we are not going to get that money
back.
Emerging market funds worked
out in the end, and the global Capital
International corporate database the
house had created earlier also lives on
as the CI in MSCI.
In an attempt to recreate these past
glories, Capital has already expanded
its European sales team and plans to
spend $1bn over the next four to six
years to build out its global distribution effort and revamp its IT systems.
The attitudinal change at its South
Hope Street HQ may prove just as
important in determining whether or
not Capitals hopes of a resurgence
head south.
[We want] to respectfully engage
and at least let people hear our side of
the story, says Mr Lovelace.

6 | FTfm

FINANCIAL TIMES Monday 8 December 2014

THE BIG PICTURE

The future is
bleak for
closet
trackers
Regulators and investors are taking
action against falsely active funds,
writes Madison Marriage

leepless nights beckon for

fund managers who are too
lazy or fearful to steer their
portfolios away from the
indextheirfundsarebenchmarked against, as regulators and
investorscloseinonclosettrackers.
Last week a class-action lawsuit
was filed against Swedens secondlargest fund house, Swedbank Robur,
over allegations that it had mis-sold
investors closet trackers funds that
charge high fees for active management, but which in fact do little more
than hug an index.
More than 2,500 investors have
signed up to the lawsuit, which was
initiated by the Swedish Shareholders Association.
Carl Rosen, chief executive of the
shareholder group, acknowledges
that it will be difficult to win the case
as this is the first time closet trackers
have been challenged in court. The
industry will use a myriad of lawyers
to fight our position, he adds.
David Pitt-Watson, executive fellow at the London Business School,
agrees that the investors legal battle
is unlikely to run smoothly. The first
thing the fund manager might say is
that it stayed within the risk parameters [agreed to by the investor]. It
might [also] make sense at times for
active fund managers to hug the
benchmark and then not hug it later
in the year, he says.
Even without a victory in court,
however, Mr Rosen is confident that
the legal pressure and growing scrutiny on closet trackers is forcing the
industry to change.
His association launched a campaign highlighting closet trackers to
Swedish retail investors a year ago,
and this year the group developed a
free online tool to help its members
identify culprit funds.
Since the campaign began, one
asset manager has reclassified an

active fund that closely followed the

benchmark as an index tracking fund
and lowered its fees, according to Mr
Rosen.
Fund managers that consider
themselves truly active are also keen
to see closet tracking stamped out.
They complain that index huggers
drag down the performance of active
fund managers as a whole, encouraging yet more investors to pull money
from active funds in favour of passive.
Andrew Telfer, senior partner at
Baillie Gifford, the Edinburgh-based
fund house, says: There are many
fund managers who are closet indexing and overcharging for that. They
havebeenadisservicetotheindustry.
Simon Clinch, US equity manager
at Invesco Perpetual, adds: The average performance of active managers
is being damped down by the inclusion of what we consider to be closet
indexers.
The good news for investors and
active fund managers alike is that
pressure on closet trackers also
known as index clones, benchmark
huggers or falsely active funds is
beginning to gather pace across
Europe.
The Danish regulator, Finanstilsynet, launched an investigation into
the phenomenon in September and
found that almost a third of the 188
domestic equity funds in Denmark
could be classified as closet trackers.
The European Securities and Markets Authority subsequently decided
last month to gather more information on the issue before deciding
whether to take action.
The UKs Financial Services Consumer Panel, an influential body that
advises the regulator on its policies,
has also urged the Financial Conduct
Authority, the regulator, to consider
forcing active fund managers to disclose their active share.
This would indicate what propor-

The average
performance of active
managers is being
damped down by the
inclusion of what we
consider to be closet
indexers

Distorting perceptions
58bn stuck in UK
closet trackers
Analysis by Simon Evan-Cook,
senior investment manager at
Premier Multi-Asset Funds,
suggests that the existence of
closet trackers is distorting
perceptions of the returns
generated by genuinely active
fund managers.
Mr Evan-Cook analysed the
active share of equity funds
aimed at UK investors, which
measures how different a fund is
from its benchmark based on the
stocks held.
An active share of 100 means
the fund holds none of the same
stocks as the index.
He placed the funds analysed in
four categories: highly active (with

tion of their trading is based on index

constituents and enable investors to
assess whether they are getting value
for money. Many consider only funds
that have an active share of more than
60 per cent to be genuinely active.
Alan Miller, chief investment
officer of SCM Private, a UK fund
house that last year published
research claiming 46 per cent of
domestic equity funds were closet
trackers, hopes the FCA will take up
the suggestion.
He says: The risk to retail investors is that most would be much better off buying an index fund, with fees
typically 80 per cent less than a closet
index fund. To pretend to sell one
an active share of more than 80);
active (60-80); closet index (1560) and index trackers (0-15).
Almost 30 per cent of the money
in the UKs two main equity sectors
(All companies and UK equity
income) is held in closet trackers,
according to Mr Evan-Cook.
That means there is 58bn of
investors money stuck in UK
equity funds that are doing little
more than copying the stock
market, but charging active fees
for doing so, he said.
If these investors switched to
the cheapest UK index-tracking
fund in the study, the manager
estimates they could easily save
upwards of 756m a year.
The performance of highly
active funds, however, has been
stronger on a 10-year basis than
index trackers despite their higher
fees, he added.

thing and actually sell another in any

industry would be fraud and individuals would be arrested.
If all funds were required to publish their active share and all of their
holdings, as they have been required
to do in the US since 2005, this malpractice would be curtailed.
Daniel Godfrey, chief executive of
the Investment Management Association, the UK trade body, says he is
not averse to the idea of fund groups
publishing their active share, provided that this is used alongside other
metrics.
He says: If a funds objective is to
achieve 1 per cent in excess of a benchmark and its charge is 20 basis points
more than a passive fund, it would not
have a very high active share but the
cost-return ratio, if the fund is successful, would seem reasonable. If its
cost was 95bp above an index fund,
thatmightseemunreasonable.
The FCA says that closet tracking is
the sort of issue [its] new fund
supervision team might look at, but
declined to comment on whether an
investigation is imminent.
The issue is beginning to appear on
the radar of other European regulators as well.
The French watchdog, the AMF,
says it may launch an enforcement
procedure when the discrepancy
[between a funds performance and
its investment policy] cannot be
properly justified.
The [closet tracking] issue is starting to be tackled in a number of countries and preliminary discussions
have already begun at the EU level.
The AMF will continue to take part
[in] these exchanges, an AMF
spokesperson adds.

FTfm | 7

FINANCIAL TIMES Monday 8 December 2014

NEWS

Greek left
spooks
investors
continued from page 1
ager who has taken a number
of punchy bets on Greek banks
in the past two years, told conference participants in New
York last week that he will not
make further investments in
Greece until the political situa-

German watchdog
BaFin says it has not
received any
complaints about
closet tracking, while
the European
Securities and
Markets Authority is
[gathering] more
information before
deciding whether to
take action Charlie Bibby;
Hannelore Foerster/Bloomberg; Balint
Porneczi/Bloomberg

To pretend to
sell one thing
and actually sell
another in any
industry would
be fraud and
individuals
would be
arrested

German watchdog BaFin says it has

not received any complaints about
thistopic sofar.IfBaFinwere togeta
concrete indication [that] a fund
claimstoactivelymanageitsassetsbut
doesnotdoso,wecertainlywouldtake
acloserlook,aspokespersonsays.
The regulators of the Netherlands
and Luxembourg did not respond to
requests for comment.
Guillaume Prache, managing director of Better Finance, a Brusselsbased investor rights group, believes
national regulators in Europes largest fund domiciles have been slow to
act. He wants Esma to use its powers
to suspend or ban products that have
been identified as closet indexers.
Esma has the legal power [to ban
products], but it has never been used.
Given this is a very serious matter and
highly detrimental to retail investors,
the sooner [Esma launches an official
investigation], the better, he says.
While regulators debate what
action, if any, to take, Mr Pitt-Watson
believes closet-tracking managers
could choose to end the practice voluntarily for commercial reasons.
Vanguard, the US fund house that
specialises in low-cost passive funds,
has been the most significant beneficiary of investor frustration with
expensive, underperforming funds
that do not meet transparency expectations, according to Mr Pitt-Watson.
He says: Vanguard has a reputation for telling the truth and keeping
fees as low as possible it is now the
second-largest fund manager in the
world. Being an ethical fund manager
is a long-term play, but it worked for
Vanguard.
Defining closet tracking is a hotbed
of regulatory arbitrage Page 13

tionstabilises.
He said: We are prepared to
invest more in Greece, but we
need political certainty. Our
investment plans are on hold
pending the outcome of the
presidential elections.
BofA declined to comment
on the leaked memo, but
Thanos Vamvakidis, head of
European foreign exchange at
the bank, said: [Syrizas economic] programme is well
known inside Greece but many
foreign investors were not

aware of the details.

A number of investors
expressed concerns because
they [think] the troika [will]
not agree with key aspects of
the programme, [and] Syriza
said they would not compromise.
He added that bringing the
minimum wage and pensions
back to pre-crisis levels will
deteriorate the competitiveness of the Greek economy.
They cannot afford to do that.
Borrowing costs for Greek

10-year government debt have

risen to 7.2 per cent, after hitting a low of 5.5 per cent in
August, while its debt-to-gross
domestic product ratio sits at
174 per cent.
Alberto Gallo, strategist at
Royal Bank of Scotland, said
his team switched to an underweight position on Greek debt
in October in response to the
political uncertainty.
Additional reporting by
Stephen Foley

8 | FTfm

FINANCIAL TIMES Monday 8 December 2014

OPINION

The little red dot hopes to entice tourists south

COMMENT

Yuri
Bender

ingaporeans typically fly

north to Hong Kong to
shop, eat and behave in a
more relaxed fashion than
in their own polite, highly
regulated and restricted society.
Now the tiny state, financial hub of
the 600m-strong Asean bloc of 10
nations and once disparagingly
referred to by neighbouring Indonesia
as Asias little red dot, hopes to boost
the numberoftouristsflyingsouth.
The government initiative to
ratchet up repeat visitorship to Singapore is likely to involve Temasek,
the $177bn state-owned investment
fund.
In addition to its role of guarding
the countrys assets by investing in
local champions, the investment
company is moving into longer-term
engagement in sustainable ventures.
Singapore watchers believe this
could include a bid to turn a 30-hectare government-owned plot in the
Mandai district, bordering the noc-

turnal zoo, into a nature reserve.

While private companies have
touted ideas such as a 300-room luxury hotel and a water theme park, the
authorities are thought to prefer a
solution more friendly to the environment. This would fit in with new
thinking at Temasek, which wants to
invest in commercially viable projects
withameaningful impactonsociety.
Despite the vast expense of recreating a rainforest habitat, more sanguine Singaporeans talk not just
about gate revenue, but also
increased tourist footfall lifting earnings for other Temasek-held enterprises including Singapore Airlines
and local shopping malls.
This new philosophy of managing
direct investments would sit alongside plans to diversify from an initial
focus on Singapore and China.
Along with the recent purchase of a
$5.7bn, 25 per cent stake in Watsons,
the pan-Asian pharmacy chain,
Temasek plans to embrace India, plus
further-flung opportunities. In
Europe, a London office has recently
been opened. The next outpost could
be on the US west coast, to profit from
fast-growing technology companies.
But there are more-conservative
forces holding back some foreign-educated young bucks at Temasek HQ.

In a city famous for architectural

statements such as the $4.7bn Marina
Bay Sands Hotel, Temasek itself is
housed in a more functional tower
above the Dhoby Ghaut mass rapid
transit station.

European banks have

now pulled back into their
comfort zone. But they
will be missing something

This is also the headquarters of the

Wealth Management Institute, created by Temasek in 2003 to keep the
countrys booming private banking
industry in step with regulations,
advice and product trends.
The WMI is now spreading its tentacles to create a local pipeline for
management positions, explains
chief executive and former Citigroup
banker Cynthia Teong.
With leadership positions increasingly taken up by indigenous bankers
rather than the high-earning Europe-

ans of old, Singapore appears to be at a

crossroads.
Some locals feel western institutions approached Asian expansion
with an overblown, short-sighted
strategy. European banks have now
pulled back into their own comfort
zone, says one well-placed official.
But they will be missing something.
The likes of French bank Socit
Gnrale, whose Asian private banking operation was recently taken over
by Singapores DBS, is a case in point.
The Singaporean bank is now
believed to be weighing up a bid for
Coutts International, the foreign
wealth management business of
Royal Bank of Scotland.
But banks are also conscious of
clouds on the horizon. If Chinese
growth slows to 6 per cent, which is
possible but unlikely, according to
BNP Paribas Investment Partners,
there could be a negative impact on
neighbouring countries.
There is already concern that fewer
wealthy Chinese visitors are using
Singapores private banks, luxury
retail franchises and casinos. These
days, northern guests are more likely
to be poorer migrants, arriving to
build endless office towers, rather
than the high rollers politicians and
bankers hope to lure to the tropics.

Santa Claus is not coming to the oilfields of America this year

VIEW FROM THE US

John
Dizard
Leslie Benedict: Money isnt
everything, Jett.
Jett Rink: Not when youve got it.
Giant (1956 )
And when you dont got it, as independent oil guy Jett Rink knew, it is
everything. Even a couple of weeks
ago it seemed as though the exploration and production companies in the
high-cost US shale plays would continue to have access to the money they
would need to cover this little temporary pricing thing going on in the oil
markets. Now, the current oil price
deck, or assumed strip of futures
prices, is incorporated in the year-end
budgeting for drilling budgets and calculations of bank borrowing bases.
And it looks as if the years of companies producing oil and cash while persistently generating negative cash
flow maybe comingtoanend.
I did not think the financing tap
would be turning off so quickly. The
high-yield bond market effectively
has been closed to the junk credit pro-

ducers since the oil price crash. However, the producers were ready; they
believed they could just turn to their
borrowing base, or total available
credit, from their banks. A few years
earlier, during the deep decline in natural gas prices that only turned at the
beginning of 2013, the gas exploration
and production companies had been
able, for the most part, to avoid catastrophe by tapping their borrowing
bases as if they were infinitely distensible credit cards. Bankers were willing to make all sorts of generous
assumptions about the life of gas
reserves, based on decline curves
thatwere more hope thanscience.
It would seem, however, that Santa
Claus will not be coming to the
Bakken in North Dakota, or the Eagle
Ford and Permian in Texas this year.
Never mind the holidays; the most
important dates on independent oil
peoples calendar are the redetermination dates for their borrowing
bases, which are usually in April and
October. That is when the banks calculate the amount of collateral producers have to offer in the form of
producible, deliverable hydrocarbon
reserves.
The value of reserves is not figured
on the West Texas Intermediate spot
price on a given day in October, of
course. Rather, it is usually based on a

trailing 12-month average of WTI,

less any basis, or discount, likely to
be imposed on the E&P companys
output, mostly accounted for by differentials in transportation cost or
product grade.
That means that, at the moment,
there are only really two disastrous oil
price months weighing down the
value of producers borrowing bases,
since the sickening (for them) part of
the crash only happened after October 1. However, that rolling 12-month
average appears as though it will continue to roll through the first three
months of next year. Even before
then, year-end reserve numbers will
have to be calculated and run through
the accountants reviews. Not only
that, but drilling rigs and crews and
other service company
contracts will need to
be locked in for the
following year,
though many are

Never mind the holidays;

the most important dates
on independent oil
peoples calendar are the
redetermination dates
for their borrowing bases

trying to put off these commitments.

There is another reason the redetermination dates are more important for the oil producers this year
than they were for the natural gas
producers during their shale-boom
price decline. The shale gas people,
with Chesapeakes Aubrey McClendon in the lead, accumulated the
rights to drill on huge swaths of land.
If they wanted to hold these rights,
either to develop the properties, or,
maybe even better, sell it to some
hopeful foreigners or Easterners,
they needed to do some drilling so the
rights would be held by production.
Once drilled and proved, this subsurface property could be included on
the balance sheet and be part of the
borrowing bases that were part of the
banks own growth prospects.
The present unconventional oil
boom, though, has been less driven
by producers races for held-by-production property. That is partly
because oil production from
shale and other tight rock
has been profitable on its own,
not just for its usefulness as a real
estate promotion (in the great American tradition) and inflator of bank
balance sheets.
So if the Saudis and other oil producing countries with high foreign
exchange reserves can afford to keep

prices down for, say, another two

years (or four borrowing base redetermination periods), US oil production numbers could come down fairly
dramatically.
That is because the big increases in
US oil output over the past couple of
years have come almost entirely from
high-cost unconventional fields.
These have very high initial production, but very high rates of decline,
say two-thirds or three-quarters in
the first year. That is why unconventional producers drill as if their lives
depended on it.
There are some offsetting factors
on the US producers side, though.
First, their costs of drilling can come
down. Most oil people, whether in the
C-suite or working on the frozen prairies, have been through other down
cycles and know how to cut back
when they have to. Second, the countries intent on keeping market share
for their state oil producers have their
own fixed costs, restive populations
with a sense of entitlement.
So whether you are a Wall Street
portfolio manager or a security service officer in an oil exporting country,
keep the redetermination dates on
your calendar. No cash from operations or the banks, no new drilling. No
new drilling, no geostrategic realignments.

10 | FTfm

FINANCIAL TIMES Monday 8 December 2014

NEWS

Fall in oil threatens high-yield bonds

INVESTMENT STRATEGY

Large drop in price of

crude is causing distress
in US energy sector
CHRIS FLOOD

Tumbling crude oil prices are threatening to destabilise the US high-yield

bond market, which has provided billions of dollars to finance the North
American shale energy revolution.
The price of West Texas Intermediate crude has dropped 36 per cent
since the start of May. This development has repercussions for the US
junk bond market, where energy is
the largest sector with a weighting of
around 15 per cent.
The fall in oil prices since May coincided with the start of six consecutive
months of redemptions from US
high-yield bond mutual funds. Investors withdrew almost $40bn by the
end of October, cutting the size of the
sector to $400bn even before Opecs
members decided in late November
against introducing limits on supply
to support oil prices.
Analysts say the withdrawals were
driven mainly by concerns about the
impact of the end of the Federal
Reserves quantitative easing programme, rather than the decline in
US crude, which traded as low as
$63.62 a barrel following the Opec
meeting.
Oleg Melentyev, an analyst at Deutsche Bank in New York, says the US
high-yield energy sector would move
into distress if US crude oil were to
trade below $60 a barrel for a sustained period. The average debt/
enterprise value multiple of the US
high-yield energy sector would rise to
0.65, a level that historically has
prompted a material increase in
defaults. In those circumstances, the
default rate for the energy sector
could reach 15 per cent. Mr Melentyev says this would be likely to trigger a broader cycle of defaults across
the high-yield market.
But Mr Melentyev also emphasises
that this is a worst-case scenario,
pointing out that energy companies
tend to operate with lower leverage
(in terms of the ratio of debt to underlying earnings) than the overall US
high-yield market. They also have
more capacity to service their debt,
having higher interest cover than the
bulk of the high-yield market. This
should provide a cushion for them to
absorb the shock of falling oil prices.
Under Deutsches base case, a few
weaker energy companies could be
forced to restructure their debts even
at current oil prices, leading to a modest increase in the overall junk bond
default rate.
The slide in oil prices has already
led to significant repricing in the highyield energy sector. Spreads over US

The drop in the

price of West
Texas
Intermediate
crude has
repercussions
for the US junk
bond market
Eddie Seal/Bloomberg

255

bp
The widening in
spreads of the
high-yield energy
sector over US
Treasuries
since June

-5.27

%
The total return
on speculativegrade energy debt
so far this year

Treasuries have widened by 255 basis

points since the end of June, the point
at which investors started to recognise
the importance of developments in
the oil market. Over the same period,
the overall US high-yield market
spread haswidened by112bp.
Speculative-grade energy debt has
recorded a total return of -5.3 per cent
so far this year, while the Bank of
America Merrill Lynch US High Yield
index has gained 3.1 per cent.
Some fund managers believe this
repricing has failed to discriminate
between the financial and operating
positions of companies, which has
provided some buying opportunities.
Doug Forsyth, who manages $16bn
in high-yield assets for Allianz Global
Investors, says there are important
differences between US oil exploration and production companies that
are working in low or high-cost
regions, and those that have protected their revenues by hedging.
Low-cost players and well-hedged
producers remain in a solid position
from a credit standpoint. There are
names that are already clearly oversold and others than could trade
lower if oil prices remain depressed.
Mr Forsyth says service providers
and drillers could be more affected if
oil prices remain low. He also notes
that recovery rates for investors in
defaulting energy companies are consistently higher than those in the
wider market as they tend to have
better quality assets than other highyield sectors.
Absolutely there has been a
change in sentiment towards energy
companies in the high-yield market.
But if crude prices do remain low, that
will bring a bring a significant boost to
consumer spending power and the
overall US economy, which should
support energy demand and stabilise
the oil market, he says.
Mark Durbiano, who manages
$11bn of high-yield assets for Federated Investors, the Pittsburgh-based
asset manager, echoes these comments. He says most oil production
companies have a certain level of
hedging in place but some will start to
feel pain as that protection gradually
runs out after 2015 if oil prices remain
depressed.
Mr Durbiano says some natural
gas-focused producers with good
hedging strategies that have been
dragged down by the current sell-off
present buying opportunities but
Federated historically had relatively
light exposure to independent oil
exploration and production companies and oilfield service providers.
Any increase in defaults is likely to
remain concentrated in the energy
sector. There will be a limited impact
on the overall high-yield market as
US consumers and those parts of the
corporate sector that rely on oil will
benefit from lower crude prices, says
Mr Durbiano.

FTfm | 11

FINANCIAL TIMES Monday 8 December 2014

NEWS

EU asset management offers bad value for money

BRUSSELS REPORT

Performance does not

justify the high fees and
costs of funds to investors
SOPHIA GRENE

A report commissioned by Brussels

has condemned the European asset
management industry for producing
a huge welfare loss for EU investors,
as well as failing to win the trust of its
customers.
The document, written by the
Brussels-based Financial Services
User Group, looked at the performance of investment funds across the
EU and concludes that the industry
does not appear to be producing good
value for investors with higher fees
not producing better performance.
Given that policy makers seem to
be intent that EU citizens should
make increasing use of financial markets to provide for core financial
needs such as saving for retirement,
it is important to understand whether
the industry is offering value for
money, and whether savers under-

stand whom they are entrusting their

money to, says the report.
It adds that the 10tn industry is
wanting in terms of performance,
transparency and trust.
The commission takes the FSUG
findings very seriously, says Vanessa
Mock, spokesperson for financial
services and tax. Consumers in
Europe are entitled to expect the best
possible deal when investing in
mutual funds. European mutual
funds regulated under Ucits [the
European retail fund directive] have
nothing to blush about in international comparison.
Although the operational safeguards and risk management
required by the Ucits directive may
offer protection from failure or fraud,
they are not intended to ensure investors make better investment choices.
While the vast majority of retail
investors still put their money with
active managers, the FSUG found that
after fees, there was no asset class
where active managers outperformed the index. This conclusion
comes after analysis of equity, bond,
balanced and money market funds

over the 10 years from 2003 to 2012.

This outcome is made worse for
investors by their own tendency to
switch funds after five years, adding
extra subscription and redemption
fees to their costs.
Because hope springs eternal in the
human breast, investors continue to
put money into active funds in the
belief they can identify those fund
managers who will outperform, even
if others do not.
However, the FSUG is pessimistic
about this too, finding fewer than a
third of the 20 per cent best-performing managers in the first five years of
the period were also in the top quintile in the second half. This is in line
with the most research, which finds
very few managers, if any, show persistent skill.
Since many asset managers and
consultants would claim asset allocation is among their skill sets, and it is a
truism that asset allocation adds a
great deal of the value of investment,
the report analyses how effective
asset allocation is in bolstering
returns. When comparing funds with
flexible asset allocation to balanced

funds that cannot vary their allocation it found that the variable funds
underperformed, in other words,
their managers destroyed value by
inappropriate asset allocation.
If investors continue to entrust
their savings to the asset management
industry, presumably they are happy
with the service they receive. Not so,
according to the market performance
indicator of the EU Consumer Scoreboard, an index based on surveys run
in each country. The market for
investment products scored lowest of
all markets for goods and services in
the EU in 2011, 2012 and 2013. That is
on a scale that includes second-hand
cars, television subscriptions and
onlinegamblingservices.
It is illogical and dangerous to continue to expect financial users to
make increased use of this industry to
save for the future and for retirement
without first improving the efficiency
of the industry and consumer confidence and trust, says the FSUG
report.
While it welcomes the further disclosure of charges mandated by various EU directives such as Ucits IV and

Mifid II, the FSUG report says these

are not enough, and calls for more
structural reform.
It is important to recognise that
information disclosure per se is not
that effective at tackling information
asymmetries between financial institutions/intermediaries and investors, it says.
Instead, low-cost index fund products should be made more readily
available to investors, conflicts of
interest should be better regulated
and the charging structure overhauled. The UK retail distribution
review, which has ended the practice
of paying advisers annual commission for a product recommended
once, is lauded, but there are obstacles to implementing it in the distribution structures prevalent across
the rest of Europe.
The report calls for a fee structure
in which managers should bear all the
transaction costs in managing a portfolio, in a suggestion echoing that of
the Financial Services Consumer
Panels recent recommendation to
the Financial Conduct Authority, the
UK regulator.

12 | FTfm

FINANCIAL TIMES Monday 8 December 2014

NEWS

The end looms for Alice in Wonderland fees

CONSUMER REPORT

Influential UK panel finds

fund houses exploit
complex cost structures
MADISON MARRIAGE

The asset management industry suffered a shock last month when an

influential panel that advises the UK
regulator on policy issued a damning
report on the state of the fund market.
The Financial Services Consumer
Panel condemned the asset management market as a powerful industry
in which misaligned incentives are
systemic.
[The industry] enjoys, largely
unchallenged, the potential to exploit
consumer behaviour, product structure complexity and the lack of cost
transparency. This is not a market
where competition works in the consumers best interests, the panel concluded.
A central issue is the allegation that
investors are being overcharged or
having non-essential costs passed on

to them without their knowledge.

Gina Miller, chief executive of
wealth manager SCM Private and a
campaigner for cost transparency,
believes the panels findings get right
to the heart of why [the fund] industry is not trusted by the public.
There is a pervasive Alice in Wonderland scenario when it comes to
costs and fees where nothing is quite
what it seems. This means that investors are simply mistrusting of saving
and investing, [which] cannot continue. If it does, we will all lose out,
including the industry, she says.
The solution, the panel suggested,
would be for the Financial Conduct
Authority to overhaul how fund managers charge investors and to
strengthen the legal duties asset managers have towards their clients.
The most controversial recommendation was that fund managers provide investors with a single investment charge. This would encompass
all fees and expenses incurred by the
fund manager, including transaction
costs, which have been widely criticised for eating into returns.

Any additional costs that are not

covered by the single investment
charge would be paid from the fund
companys balance sheet, instead of
being passed on to the investor. The
panel argued this could also benefit
fund companies in years when transaction costs are lower than expected.
There is a sharp divergence in
views among senior industry figures
as to whether the proposal would
work in practice.

[Asset management] is
not a market where
competition works in the
consumers best interests
Martin Gilbert, chief executive of
Aberdeen Asset Management,
Europes largest listed fund house,
says he has no problem with it. The
more transparency there is over
charging, the better.
Mr Gilbert said he would be happy
to include transaction costs in the
companys charging structure. The
charges for Aberdeens Luxembourg

fund range have already been

changed to include all costs apart
from transaction costs. This policy
will be extended to the groups UK
fund range in the first quarter of 2015,
he says.
Other industry figures are more
cautious. Daniel Godfrey, chief executive of the Investment Management
Association, the UK trade body, is
worried that putting the onus for paying unanticipated transaction costs
on fund houses will create a new conflict of interest that could ultimately
harm investors.
He says: The idea will quite rightly
have pushback. While I think it is an
interesting proposal to talk about allinclusive charges, it does not make
sense to require people to include
transaction costs. If some people
want to do it, that is fine, but it would
not suit everyone.
The IMAs primary concern is that
fund managers might avoid trading
once those trades begin to affect the
companys profit and loss account,
even if this proved detrimental to
investors returns.

Mr Godfrey says: You want managers to make buy and sell decisions
totally uninhibited.
John Nuge, former head of official
institutions at State Street Global
Advisors, agrees that this measure
could be a retrograde step. He says:
You run the risk of a fund manager
saying, If I do this [trade], the client
will benefit but it will cost me
money.
Ms Miller dismisses such arguments as spurious.
She says: It is ironic that the IMA is
now saying that there would be a conflict of interest were companies to
simply make one charge as this would
encourage them not to trade. One
would have thought that if the trade
made a significant difference to performance, there would be quite an
incentive to deal.
She also rejects the argument made
by some fund managers that transaction costs are hard to predict. It is
easy to smooth volatile costs to give a
better guide to consumers. This is far
better than pretending that the costs
do not exist, she says.

FTfm | 13

FINANCIAL TIMES Monday 8 December 2014

OPINION

QE is the last
throw of the
eurozone dice
THE LAST WORD

John
Plender

or much of this year the

equity market story has
been about central banks
conducting levitation in
share prices through the
jerky ratchet known as risk-on, riskoff. Investors perceptions about
whether monetary tightening would
come sooner or later have caused
markets to twitch up and down, yet
the overall trajectory has remained
upwards.
The big question has been whether
corporate earnings could rise sufficiently to justify the valuation uplift.
But since June something real has
been going on that greatly improves
the prospects for both economic
growth and corporate earnings in a
developed world that has been suffering from anaemic growth.
The fall in oil prices of more than 30
per cent over that period gives consumers in the advanced economies
the equivalent of a tax break at the

expense of oil producers. Since

advanced countries spend more of
their income than emerging market
oil producers the outcome is a boost
to aggregate demand.
This is a boon, especially in the
eurozone, which suffers acutely from
deficient demand. Yet many fear that
the energy-induced decline in the
price level will tilt the eurozone into
deflation and put it on to the road to
perdition.
I have long been worried that the
European Central Bank has been slow
to address the threat of deflation. But
a fall in energy prices is not a good
reason for panic because deflation
can be good, bad or something in
between.
In the depression of the 1930s it was
undoubtedly bad, because it reflected
excess supply and deficient demand.
In the late 19th century it was good.
During the misnamed Great Depression of 1873-96, there was average
annual real growth of 2 per cent
despite a decline in the general price
level, spurred by shrinking land
values and falling prices in older
industries.
The experience of falling energy
prices comes closer to the 19th century example than the 1930s. The

If the European Central Bank moves to full QE against the wishes of the
German members of the governing council, the damage to the ECBs
credibility would be devastating Thomas Lohnes/Getty
problem with a malign deflation is
that consumers defer spending decisions because they expect things to

A move to quantitative
easing would be a
sign of desperation
the last throw of the
eurozone dice

become cheaper. Yet history suggests

that a rise in real incomes resulting
from falling energy prices is more
likely to encourage people to spend.
That said, there are other very powerful deflationary forces at work in
the eurozone, such as the restrictive
German fiscal diktat and an ECB
monetary policy that is delivering
below-target inflation of just 0.3 per
cent. By putting downward pressure
on inflation, the fall in energy prices
will add to the pressure on the ECB to

move to full US-style quantitative

easing.
Here, paradoxically, there could be
a malign impact. For if the ECB moves
to full QE against the wishes of the
German members of the governing
council, the damage to the ECBs
credibility would be devastating. It is
hard to see how the eurozone central
bank could operate without the support of Europes economic superpower.
Yet if Mr Draghi, the president,
does persuade the Germans that the
ECBs legal mandate cannot be fulfilled without QE, it would send a
curious signal. The Germans are not
alone on the governing council in
being sceptical about QE, given the
very different financial structure in
the eurozone compared with the US.
While markets, gripped by a hunger
for yield, are currently fired up about
the prospect, they would ultimately
have to recognise that a move to QE
would be a sign of desperation the
last throw of the eurozone dice.
Indeed, investors are placing a
euphoric bet on a policy of probably
limited effectiveness.
To return to energy prices, the big
corporate losers will be fracking companies and other high-cost producers.
That is a worry for investors in credit,
since the energy sector is a big chunk
of the high-yield bond and leveraged
loan markets. Risk premia in credit
markets are already astonishingly
low relative to government securities
thanks to the search for yield. A rash
of energy sector defaults, especially if
combined with worries about the
ECBs credibility, could spell the
beginning of the end of the great yield
mania.
john.plender@ft.com

Defining closet tracking is a hotbed of regulatory arbitrage

VIEWPOINT

Jean-Pierre
Casey

he active versus passive

investment debate has
taken a new turn. Esma,
the European watchdog
of securities markets, is
to take a closer look at so-called
closet trackers, with a view to identifying whether a co-ordinated panEuropean policy response is needed.
The fact that many active fund
managers are not able to beat market
indices consistently on a risk-adjusted basis and/or net of fees and
yet still charge management fees that
can be multiples of passive strategies
suggests that passive investments
such as exchange traded funds ought
to occupy a greater share of investment portfolios.

Over time, costs can erode the net

returns to investors significantly.
Thus focusing on the relative costs of
different investment products is not
misguided, particularly against the
backdrop of an ageing population and
an accelerating transition from
defined benefit to defined contribution pension schemes, which will
increase the importance of private
asset management in marshalling
savings into long-term investments.
Yet the path to a balanced regulatory intervention is fraught with dangers, and could potentially do more
harm than good, including from a
consumers perspective. Two of these
difficulties are particularly salient.
First, defining what constitutes a
closet tracker may appear easy in theory, but becomes far more difficult in
practice.
Is a closet tracker one that mimics a
benchmark index too much in
terms of its composition and weightings; replicates the performance of an
index too closely (even though their

compositions may differ) or one

whose tracking error vis--vis the
index is deemed too little; exhibits a
turnover deemed too low; displays
high correlations to market indices? Is
itall,or some,oftheabove?
Clearly a credible definition of
closet tracking would necessitate setting quantitative thresholds around
turnover ratios, portfolio composition, tracking error, correlations and
other relevant metrics. Arriving at
those thresholds in a non-arbitrary
fashion would be exceptionally difficult.
On the other hand, rules that do not
quantitatively define closet tracking
would either have no bite, or give regulators far too much discretion. The
latter would increase regulatory
uncertainty, stifle product development and create a hotbed of regulatory arbitrage.
The second difficulty concerns how
regulators would establish what constitutes a fair price with respect to
passive investing. That is, in a way,

the crux of the problem. If it were not

for the higher active management
fees closet trackers charge, nobody
would be fussing over them. As an
opinion on what the price of a passive
investment ought to be, the witch
hunt for closet trackers amounts to
nothing other than price regulation
and implies a ceiling on prices investors should pay for passive investment strategies.

The witch hunt for

closet trackers amounts
to nothing other than
price regulation
That formal regulatory intervention is even being considered in relation to the fees charged by providers is
worrying. This has nothing to do with
regulating for transparency, consistencyorcomparabilityofprices.
The best regulatory tools to tackle
this perceived problem are transpar-

ency and competition. These tools

are already available to regulators
through various disclosure, suitability and conflict of interest management measures embedded in EU legislation, particularly the Mifid and
Ucits directives, which form the backbone of investor protection in relation to the European asset management industry.
It is not immediately apparent that
a market failure exists in relation to
closet trackers, nor that regulatory
interventions of the kind suggested
would lead to improved outcomes for
consumers. Sometimes the best
course of policy action is inaction.
May this lesson not be lost during the
exercise regulators are currently
undertaking on closet trackers.
Jean-Pierre Casey is a partner, head of
asset management, at Azure Wealth
LLP in London. He also is a visiting professor at the College of Europe in Bruges,
Belgium and an associate research fellow
at the Centre for European Policy Studies

14 | FTfm

FINANCIAL TIMES Monday 8 December 2014

FTfm

Guide to data
The fund prices quoted in FTfm are supplied
by the operator of the relevant fund. Details of
funds, including prices, are for informational
purposes only. The Financial Times Limited
makes no representation as to their accuracy
or completeness, and they should not be relied
upon when making an investment decision.
The sale of interests in the funds listed in
FTfm in certain jurisdictions may be restricted
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available to persons in all jurisdictions in which
the publication circulates. Persons in any
doubt should take appropriate professional
advice.
Data collated by Morningstar. For all other
queries, contact the FT at

Fund

Bid

Offer D+/- Yield

ACPI Global UCITS Funds Plc

(IRL)

www.acpi.com
Regulated
ACPI Emerging Mkts FI UCITS Fund USD A $ 113.17

-0.29 0.00

ACPI Global Credit UCITS Funds USD A $ 13.64

0.00 0.00

ACPI Global Fixed Income UCITS Fund USD A $ 148.71

0.07 0.00

ACPI India Fixed Income UCITS Fund USD A3 $ 85.85

-0.10 0.00

ACPI International Bond UCITS Fund USD A $ 18.13

0.02 0.00

ACPI Balanced UCITS Fund EUR Retail 10.74

0.01 0.00

0.02 0.00

ACPI Balanced UCITS Fund USD Institutional $ 10.00

ACPI Balanced UCITS Fund EUR Institutional 10.00

ACPI Focused Equity UCITS Fund $ 12.70

Bid

Offer D+/- Yield

Arisaig Global Emerging Markets Consumer UCITS 11.03

-0.10 0.00

Arisaig Global Emerging Markets Consumer UCITS STG 11.12

0.00

Arisaig Latin America Consumer Fund $ 24.49

-0.27 0.00

Artemis Fund Managers Ltd

(CYM)

Regulated
Artemis Gbl Hedge Fd Ltd GBP

56.05

0.05

Artemis Gbl Hedge Fd Ltd EUR

52.38

0.01

Artemis Gbl Hedge Fd Ltd USD

$ 56.42

0.03

-0.13 0.00

Fund

Bid

Offer D+/- Yield

BLME Asset Management

(LUX)

BLME Sharia'a Umbrella Fund SICAV SIF

Regulated
$ Income Fund - Share Class A Acc $ 1136.57

0.26 0.00

$ Income Fund - Share Class B Acc $ 1155.67

0.27 0.00

$ Income Fund - Share Class C Acc $ 1006.83

0.23 0.00

$ Income Fund - Share Class D Dis $ 1007.06

0.23

$ Income Fund - Share Class G Acc 1074.93

Artemis Pan-Euro Hdg EUR

179.92

-7.17

Artemis Pan-Euro Hdg GBP

198.23

-7.60

Artemis Pan-Euro Hdg USD

$ 187.05

-7.08

(IRL)

Regulated
ACPI Balanced UCITS Fund USD Retail $ 14.20

ACPI Balanced UCITS Fund GBP Institutional 10.00

Fund

0.01 0.00

ACPI Select UCITS Funds PLC

ACPI Balanced UCITS Fund GBP Retail 10.84

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by the Financial Services Authority. The prices
quoted should only be used as a guide.
OEIC: Open-Ended Investment Company.
Similar to a unit trust but using a company
rather than a trust structure.
Share Classes: Separate classes of share are
denoted by a letter or number after the name
of the fund. Different classes are issued to
reflect a different currency, charging structure

www.alceda.lu
FCA Recognised
AC Opp - Aremus Fund EUR A
AC Risk Parity 7 Fund (EUR A)
AC Risk Parity 12 Fund (EUR A)

105.00
122.65
147.51

0.76

-0.04 0.00
-0.04

AC Risk Parity 17 Fund EUR A

96.62

-0.03 0.00

ACQ - Risk Parity Bond EUR A

103.41 103.41 -0.20 0.00

0.22 0.00

$ Income Fund - Share Class V DisA$ 1027.44

0.23

Gl Sukuk Fund - Share Class A Acc $ 1211.79

0.39 0.00

Artisan Global Equity Fund Class I USD Acc $ 14.54

0.03

Artisan Global Opportunities I USD Acc $ 11.57

-0.02 0.00

Artisan Global Value Fund Class I USD Acc $ 16.34

-0.01 0.00

Artisan US Value Equity Fund Class I USD Acc $ 11.46

-0.05 0.00

(LUX)

2 rue Albert Borschette L-1246 Luxembourg

FCA Recognised
Ashmore SICAV Emerging Market Debt Fund $ 101.03

0.01 11.38

Ashmore SICAV Emerging Market Frontier Equity Fund $ 167.18

-0.84 1.10

Ashmore SICAV Emerging Market Total Return Fund $ 90.12

-0.21 8.76

Ashmore SICAV Global Equity Fund $ 119.23

0.83 0.07

Ashmore SICAV Global Small Cap Equity Fund $ 132.55

0.70 0.07

$ 99.61
$ 95.12

-0.19 1.57
-0.37 8.93
-0.37 9.08

Amundi Funds

BNP Paribas Investment Partners

5 Aldermanbury Square, EC2V 7BP London
Telephone: +44 207 063 7783
FCA Recognised
BNP Paribas Insticash
BNP Paribas InstiCash EUR P Cap* 118.76

BNP Paribas L1
BNPP L1 Bd World Plus P Dis*

94.06

(LUX)

0.00 0.00
0.00 0.00

-0.88 6.21

$ 103.07

0.04 0.00

Bond Euro P Cap*

156.18

-0.15 0.00

Bond Euro Medium Term P Cap* 134.83

-0.08 0.00

Bond USA High Yield P Cap*

$ 18.98

0.02 0.00

Bond USD Goverment P Cap*

$ 165.69

0.06 0.00

Bond World Corporate C

$ 151.59

0.20 0.00

Bond World Emerging P Cap*

$ 25.15

0.01 0.00

Bond World Emerging Advanced C $ 98.88

-0.26 0.00

Bond World Emerging Local P Cap* $ 84.29

-0.25 0.00

105.19

0.10 0.00

Bond World Inflation-Ld P Cap*

115.77

0.27 0.00

Bd. Global AU Class - R - USD

Convertible Bond World P Cap*

109.55

-0.35 0.00

Equity Best Selection Euro P Cap* 141.31

-1.88 0.00

Equity Best Selection Europe P Cap* 136.95

-1.56 0.00

$ 26.90

0.04

Eq. Emerging Europe AE Class - R - EUR 26.83

-0.24 0.00

Aspect Capital Ltd (UK)

Eq. Emerging World AU Class - R - USD $ 94.18

-0.20 0.00

Other International Funds

Aspect Diversified USD

Gl. Macro Bds & Curr Low Vol AHG - GBP 98.88

-9.90 0.00
-0.15 0.00

The Antares European Fund Limited

Other International
AEF Ltd Usd

$ 579.74

7.71

AEF Ltd Eur

581.10

7.90 0.00

$ 376.67

(LUX)
22 Conduit Street, Mayfair, London W1S 2XR +44(0)20 7491 1901
FCA Recognised
The Arbiter Global Emerging Markets Fund Class A USD $ 110.86 - -0.52 0.00

Arisaig Partners
Other International Funds
Arisaig Africa Consumer Fund Limited $ 17.81

0.05 0.00

Arisaig Asia Consumer Fund Limited $ 60.82

0.19 0.00

Arisaig Global Emerging Markets Consumer Fund $ 10.48

-0.01 0.00

Equity Best Selection Europe ex-UK P Cap* 121.96

0.00 0.03

1.00

(IRL)

0.00 0.20

(JER)
Barclays Investment Funds (CI) Ltd
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800
FCA Recognised
Bond Funds
Sterling Bond F
0.46 0.00 3.42

Aspect Diversified GBP

114.80

7.87 0.00

Equity Brazil P Cap*

Aspect Diversified CHF

SFr 108.23

7.74 0.00

Equity Europe Growth P Cap*

137.48

-1.49 0.00

Aspect Diversified Trends USD

$ 110.62

0.60 0.00

Equity India P Cap*

$ 121.36

-0.46 0.00

Aspect Diversified Trends EUR

110.27

0.61 0.00

Equity Indonesia P Cap*

Aspect Diversified Trends GBP

114.08

0.62 0.00

Equity Japan P Cap*

100500.00

592.00 0.00

Equity Japan Small Cap P Cap*

190621.00

-769.00 0.00

15.85

(LUX)

Equity Latin America P Cap*

$ 85.65

$ 110.13

$ 33.87

-2.03 0.00

-0.26 0.00

0.16 0.00

Australia A GBP Inc

73.29

0.34 2.27

Baring China Bond Fund

$ 10.33

-0.01 0.00

9.58

-0.04 0.00

Baring European Opportunities Fund Class A EUR Acc 11.15

0.09 0.00

Baring Global Mining Fund - Class A GBP Inc

5.38

0.01 0.67

Dynamic Emerging Markets A GBP Acc F

9.86

0.07 0.00

48.61

0.11 0.67

9.36

-0.02 6.05

Emerging Opportunities A GBP Inc H 20.07

0.10 0.00

Glb Emerging Markets A GBP Inc H 20.13

0.10 0.45

Glb Resources A GBP Inc H

0.12 0.33

Eastern Europe A GBP Inc

12.81

High Yield Bond A GBP Hedged Inc H

Fund

Bid

Offer D+/- Yield

-0.12 0.00

BlueBay Gbl Convert Bd I - USD

$ 190.00

0.42 0.00

Candriam Qt-Eqts Europe Cap

2083.95

-20.64 0.00

BlueBay Gbl High Yield Bd B

$ 130.25

-0.67 0.00

Candriam Qt-Eqts USA Cap

$ 2418.10

-5.80 0.00

BlueBay High Yield B - EUR

329.88

0.01 0.00

BlueBay High Yield Corp Bd B

139.66

0.01 0.00

Candriam Investors Group

172.31

-0.08 0.00

354.65

-0.46 0.00

BlueBay Inv Grd B Euro Gov Bd Fund 145.98

-0.26 0.00

Candriam Sust North America Cap $ 41.37

-0.24 0.00

BlueBay Inv Grd I Euro Agg Bd Fund 146.52

-0.20 0.00

Candriam Sust World Cap

-0.31 0.00

BlueBay Inv Grd Libor Fd B

126.16

-0.01 0.00

BlueBay Struct.Fds: High Inc Loan Fd 190.21

-0.05 0.00

Other International Funds

Candriam Eqts L Emerging Mkts Cap 643.28

-6.62 0.00

Candriam Eqts L Euro 50 Cap

517.44

-9.15 0.00

Candriam Eqts L Europe Cap

886.98

-12.04 0.00

Candriam Eqts L Japan Cap

BlueBay Inv Grd B - EUR

BONHOTE
Other International Funds
Bonhte Alternative - Multi-Arbitrage (USD) Classe (EUR) 6822.00

-48.00 2.46

Bonhte Alternative - Multi-Performance (USD) Classe (EUR) 9947.00

71.00 0.85

Braemar Group PCC Limited

(GSY)

Candriam Bds Euro High Yield Cap 966.36

0.72

-0.28 0.00

Candriam Bds Euro High Yield R Cap 106.77

Candriam Bds Euro Long Term Cap 7631.86

-13.95 0.00
-0.75 0.00

Brown Advisory Funds plc

(IRL)
http://www.brownadvisory.com Tel: 020 3301 8130
FCA Recognised
Brown Advisory US Equity Growth Fund USD B $ 21.35 - -0.01 0.00

-0.04 0.05

-0.04 0.18

Latin America A USD Inc H

$ 36.91

-0.08 1.09

Brown Advisory US Smaller Companies Fund USD B $ 16.02

-0.06 0.00

MENA A GBP Inc F *

14.66

-0.01 1.08

Brown Advisory US Small Cap Blend Fund USD B $ 11.83

-0.05 0.00

Brown Advisory US Flexible Equity Fund USD B $ 11.11

-0.01

0.29 3.95

1031.50

8.49 0.00

BLK Intl Gold & General

5.39 -0.02 0.00

5.11

(IRL)

38.43

0.54 0.00

0.00 0.00

Student Accom Class B

Brown Advisory American Fund USD B $ 15.76

Blackrock UK Long Lease

-4.46 0.00

-0.01 0.00

Brown Advisory American SRI Fund USD B $ 14.70

Regulated
BlackRock UK Property

-0.01 0.00

(JER)

0.28 0.00

2215.27

BlackRock

1.37

14.83

-0.68 1.17

4.54 0.00

Candriam Bds Euro Corp ExFin Cap 162.08

1.25

India Fund - Class A GBP Inc

74.00 0.00

-0.04 0.78

24.78

FCA Recognised
Russia A GBP Inc F

20293.00

Candriam Bds Euro Conv. Classic Cap 3502.81

UK Agricultural Class B

Brown Advisory US Equity Value Fund USD B $ 12.60

(LUX)

Candriam Investors Group

Candriam Bds Euro Gov.Cl.Cap

-0.01 6.49

Barings (Luxembourg)

-54.72 0.00

Equity Russia Opport. P Cap*

$ 491.00

-12.26 0.00

American One

$ 3177.74

-6.50 0.00

Equity Turkey P Cap*

120.59

0.98 0.00

Bond Global

1264.51

-2.17 0.00

Equity USA Growth P Cap*

Eurocroissance

767.94

-0.76 0.00

Equity USA Mid-Cap P Cap*

$ 180.21

-4.48 0.00

Equity USA Small-Cap P Cap*

$ 151.59

Equity World Low Vol P Cap*

V350 P Cap*

$ 138.05

144.20
102.55

* RDR-compliant share class

24.16

Regulated
UK Agricultural Class A

11.23 0.62

0.14 0.00

(BE)

FCA Recognised
Candriam Sust Euro Bonds Cap

Offer D+/- Yield

Candriam Bds Euro Infl Linked Cap 141.20

5.70

Bid

-0.26 0.00

6.90

Fund

582.71

Regulated
China A-Share A GBP Inc

Prospectus data, price histories, charges and

risk analytics on the funds within these pages
is available online at www.ft.com/funds.

BlueBay Emg Mkt Loc Ccy Bd B - USD $ 158.54

Hong Kong China A GBP Inc

Baring International Fd Mgrs (Ireland)

move to forward pricing at any time.

Forward pricing: The letter F denotes that that
managers/operators deal at the price to be set
at the next valuation. Investors can be given
no definite price in advance of the purchase or
sale being carried out. The prices appearing in
the newspaper are the most recent provided
by the managers/operators. Scheme
particulars, prospectus, key features and
reports: The most recent report, scheme
particulars, prospectus and key features
document may be obtained free of charge
from fund managers/operators.
* Indicates funds which do not price on
Fridays.
Other explanatory notes are contained in the
last column of the FT Managed Funds Service.

(IRL)
CG Asset Management Limited
Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland
00 353 1 434 5098
FCA Recognised
Capital Gearing Portfolio Fund Plc 26373.16 26373.16 84.37 0.63
CG Portfolio Fund Plc
Real Return Cls A

0.06

Candriam Bds Euro Sh.Term Cap 2073.63

Candriam Bds High Spread Classic Cap 184.74

0.07 0.00

Candriam Bds International Cap

989.11

-0.22 0.00

Candriam Bds USD Cap

$ 919.56

2.01 0.00

Candriam Total Return Bond Cap 131.41

-0.12 0.00

Capital International funds services

(LUX)
6, route de Trves, L-2633 Senningerberg,Luxembourg
Capital International funds are part of
The Capital Group Companies
www.thecapitalgroup.com
FCA Recognised
Growth Funds
SFr 22.55 0.22 0.00
Cap Group All Ctry Eq B
Cap Group All Ctry Eq B

18.75

0.18 0.00

Cap Group All Ctry Eq B

$ 23.02

0.00 0.00

Cap Group All Ctry Eq BD

14.72

0.09 0.00

Cap Group Global Equity B

$ 22.53

0.02 0.00

Cap Group Global Equity BD

13.94

0.10 0.30

Cap Group Global Equity B

SFr 22.08

0.25 0.00

Cap Group Global Equity B

18.36

0.20 0.00

Cap Group Japan Equity B

0.05 0.00

171.20 171.20 0.50 2.34

Dollar Fund Cls D

128.40 128.40 0.48 1.64

Capital Value Fund Cls V

127.81 127.81 0.38 0.27

CACEIS (Switzerland) SA
Tel: +41 22 360 94 00 www.caceis.ch
Other International Funds
Dynamic Ratchet Bond Fund-Japan 6991.00

58.00 0.16

9.38

Cap Group Japan Equity B

$ 11.51

-0.06 0.00

Cap Group Japan Equity B

SFr 11.28

0.06 0.00

7.35

0.01 0.00

Cap Group AsiaP ex Jp Eq B

SFr 17.99

0.08 0.00

Cap Group AsiaP ex Jp Eq B

14.96

0.07 0.00

Cap Group AsiaP ex Jp Eq B

$ 18.36

-0.10 0.00

Cap Group Asia Pex Jp Eq BD

11.18

0.01 0.39

Cap Group Em Mkts Fund BD

52.04

0.04 0.00

Cap Group Em Mkts Fund B

SFr 82.69

-0.83 0.00

Cap Group Em Mkts Fund B

68.77

-0.64 0.00

Cap Group Japan Equity BD

$ 3326.95

43.71

hours; # 1701 to midnight. Daily dealing prices

are set on the basis of the valuation point, a
short period of time may elapse before prices
become available.
Yield: Funds comprising mainly of bonds
normally quote a gross redemption yield after
all charges but before tax has been deducted.
Funds mainly made up of equities normally
quote a yield representing the estimated
annual payout net of tax for basic rate
taxpayer. For further information contact the
management company.
Historic pricing: The letter H denotes that the
managers/operators will normally deal on the
price set at the most recent valuation.
The prices shown are the latest available
before publication and may not be the current
dealing levels because of an intervening
portfolio revaluation or a switch to a forward
pricing basis. The managers/operators must
deal at a forward price on request, and may

-0.59 0.00

Regulated
American Dynamic

$ 703.20

Asia Growth A GBP Inc H

-1.38 0.00

225.39

Far East
-

26.30 0.00

Aspect Diversified EUR

Atlantas Sicav
Arbiter Fund Managers Limited

Regulated
Global Liquidity USD

Emerging Mkt Debt LC A GBP Hedged Inc

Parvest
Bond Asia ex-Japan P Cap*

Bond World High Yield P Cap*

Bank of America Cap Mgmt (Ireland) Ltd

Baring Emerging Markets Corporate Debt Fund $

(LUX)
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332
www.amundi-funds.com
FCA Recognised
Bd. Euro Corporate AE Class - R - EUR 18.69 - -0.01 0.00

Eq. Latin America AU Class - R - USD $ 479.29

1.00

(IRL)
Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004
FCA Recognised
ASEAN Frontiers A GBP Inc
120.59 - -0.49 0.94

(IRL)
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland
Tel: 44 (0) 207 766 7130
FCA Recognised
Artisan Partners Global Funds plc
Artisan Emerging Markets I USD Acc $ 7.88 - -0.02 0.00

EM Mkts Loc.Ccy Bd USD F

6.54 0.00

BNP Paribas

0.19 0.00

Artisan Partners Global Funds PLC

EM Mkts Corp.Debt USD F

Offer D+/- Yield

Baring International Fd Mgrs (Ireland)

Ashmore SICAV Local Currency Fund $ 89.13

Eq. Greater China AU Class - R - USD $ 611.46

Bid

Gl Sukuk Fund - Share class B Acc 1074.60 1074.60 0.29 0.00

Ashmore Sicav

Fund

Other International Funds

BNP PARIBAS GLF USD-DIST-USD $

$ Income Fund - Share Class M Acc 1015.43

BNP Paribas InstiCash GBP P Cap* 131.87

Alceda Fund Management S.A.

or type of holder.
Buying price: Also called offer price. The price
at which units in a unit trust are bought by
investors. Includes managers initial charge.
Selling price: Also called bid price. The price
at which units in a unit trust are sold by
investors.
Single price: Based on a mid-market valuation
of the underlying investments. The buying
and selling price for shares of an OEIC and
units of a single priced unit trust are the same.
Exit Charges: The letter E denotes that an
exit charge may be made when you sell units,
contact the manager/operator for full details.
Time: The time shown alongside the fund
managers/operators name is the time of the
unit trusts/OEICs valuation point unless
another time is indicated by the symbol
alongside the individual unit trust/OEIC name.
The symbols are as follows: 0001 to 1100
hours; 1101 to 1400 hours; 1401 to 1700

-0.07 0.00

BlueBay Asset Management LLP

(LUX)

-1.42 0.00

Regulated
BlueBay Em Mkt Abs Ret Bd IN

100.59

-0.65 0.00

Candriam Investors Group

-1.00 0.00

BlueBay Em Mkt Bd B - USD

$ 294.14

0.57 0.00

FCA Recognised
Candriam Eqts L Australia Cap

-1.51 0.00
-0.17 0.00

BlueBay Em Mkt Corp Bd B

$ 165.59

BlueBay Em Mkt Sel Bd B - USD $ 159.89

-1.28

0.03 0.00

A$ 966.91

Candriam Eqts L Sust World Cap 260.42

Candriam Bds Euro Cap

1115.41

(LUX)
-

-7.15 0.00
-3.40 0.00
-1.67 0.00

FTfm | 15

FINANCIAL TIMES Monday 8 December 2014

FTfm
Fund

Bid

Offer D+/- Yield

Cap Group Em Mkts Fund B

$ 85.53

0.00 0.00

Growth and Income Funds

Cap Group Glb Growth Inc BD

11.89

0.08 0.63

Cap Group Glb Growth Inc B

16.01

0.17 0.00

Cap Group Glb Growth Inc B

SFr 19.26

0.21 0.00

Cap Group Glb Growth Inc B

$ 19.66

0.03 0.00

Cap Group Eur Growth Inc B

Cap Group Eur Growth Inc B
Cap Group Eur Growth Inc B

25.00
SFr 30.07
$ 30.70

0.14 1.28

20.62

0.19 0.00

Cap Group US Growth Inc B

SFr 24.81

0.24 0.00

Cap Group US Growth Inc BD

Objective Based Funds
Cap Group Em Mk Tot Opp B
Cap Group Em Mk Tot Opp B

16.08

SFr 11.38

9.46

-0.15 0.00

Cheyne Global Credit Fund

0.02 0.00

120.40

Other International Funds

Cheyne European Event Driven Fund 140.66

Cheyne European High Yield Fund 138.40

0.14 0.00

Cheyne Long/Short Credit Fund

$ 214.44

-0.46

Cheyne Malacca Asia Equity Fund Class A $ 1500.81

Cheyne Multi Strategy Liquid Fund $ 124.50

Cheyne Real Estate Credit Holdings Fund 138.46

Comgest Gth Emerging Mkt DIS F $ 34.01

-0.01 0.28

0.52 0.00

Comgest Gth Europe DIS F

-0.13 0.00

-0.18 0.00

Cheyne Total Return Credit Fund - December 2017 Class $ 197.03

4.40 0.00

Cheyne Total Return Credit Fund December 2019 $ 127.97

0.00

Clareville Capital Partners LLP

-0.10 0.00

Other International Funds

Pegasus Fund Ltd A-1 GBP

58.09

0.02 0.00

Pegasus Fund Ltd A-2 GBP

147.30

0.04 0.00

0.00 1.38

Pegasus Fund Ltd A-1 EUR

24.86

0.01 0.00

Cap Group Gbl Abs Inc Grow B

$ 13.32

-0.01 0.00

Pegasus Fund Ltd A-1 USD

$ 26.66

0.01 0.00

Pegasus Fund Ltd A-2 USD

$ 144.99

0.04 0.00

-0.14 0.00

Cap Group Em Mkts Debt B

11.25

-0.11 0.00

Cap Group Em Mkts Debt B

$ 14.00

0.00 0.00

Cap Group Em Mkts Debt Bd

0.00 4.58

Pegasus Fund Ltd B-1 GBP

Pegasus Fund Ltd B-2 GBP

-0.13 0.00

187.41
143.69

-0.16 0.00

15.84

0.02 0.00

Cap Group Glb H Inc Opp B

SFr 33.48

0.28 0.00

Cap Group Glb H Inc Opp B

27.84

0.23 0.00

-0.23 0.00

All Africa

$ 20.02

0.23 0.00

Africa Frontiers

$ 21.42

-0.43 0.00

6 Duke Street,St.James,London SW1Y 6BN

www.dodgeandcox.worldwide.com 020 3713 7664
FCA Recognised
Dodge & Cox Worldwide Funds plc - Global Bond Fund
EUR Accumulating Class
11.02 - -0.06 -

Top 20 South Africa (Cayman Islands) $ 25.45

0.56 0.00

EUR Accumulating Class (H)

9.82

0.01

EUR Distributing Class

10.91

-0.07

EUR Distributing Class (H)

9.72

0.01

GBP Distributing Class

10.49

0.01

0.05 0.00

157.09

0.06 0.00

Pegasus Fund Ltd B-1 USD

$ 168.11

0.05 0.00

Cap Group Glb H Inc Opp B

$ 34.18

-0.04 0.00

Cap Group Glb H Inc Opp BD

12.46

0.06 5.14

SFr 18.84

0.07 0.00

15.66

0.05 0.00

Cap Group Global Bond B

$ 19.23

-0.12 0.00

Cap Group Global Bond BD

10.01

0.00 0.89

CMI Asset Mgmt (Luxembourg) SA

(LUX)
23 route d'Arlon, L-8010 Strassen Lux 00 352 3178311
FCA Recognised
CMI Global Network Fund (u)
Regional Equity Sub Funds
CMI Continental Euro Equity
27.26 - -0.12 0.97

(BMU)

0.01 2.34

21.03

-0.19 0.00

CMI US Enhanced Equity F

$ 79.02

-0.11 0.56

CC Japan Alpha Fd - Cls A Euro

10.24 10.24 -0.02 0.00

CC Japan Alpha Fd - Cls B GBP

11.16 11.16 -0.03 0.00

Dodge & Cox Worldwide Funds plc-International Stock Fund

USD Accumulating Share Class $ 15.56 - -0.08 0.00

CC Japan Alpha Fd - Cls C JPY

1094.91 1094.91 -2.40 0.00

Index Tracking Sub Funds

Euro Equity Index Tracking

18.80

-0.12 2.09

Japan Index Tracking

766.03

2.99 0.94

UK Eqty Index Tracking

15.52

0.02 2.96

US Eqty Index Tracking

$ 58.12

-0.07 0.78

Global Opportunities I USD

1.75

0.00 1.09

Global Opportunities I GBP

1.12

0.00 0.99

Global Telecomms A-GBP

0.28

0.00 1.01

Global Opportunities I EUR

1.41

-0.01 1.04

India Focus A-GBP

4.51

0.01 0.00

Global Opportunities A GBP

1.05

0.00 0.58

Latin America A-GBP

1.81

-0.03 0.16

Pan European Opportunities I EUR

1.52

-0.02

(IRL)
Findlay Park Funds Plc
Styne House, Upper Hatch Street, Dublin 2 Tel: 00 353 1603 6460
FCA Recognised
American Fund USD Class
$ 78.53 - -0.17 0.00

SR 13.37

0.00

0.24 0.00

Ennismore Smaller Cos Plc

(IRL)

5 Kensington Church St, London W8 4LD 020 7368 4220

FCA Recognised
Ennismore European Smlr Cos NAV 92.38 0.39 0.00
Ennismore European Smlr Cos NAV 116.63

Ennismore European Smlr Cos Hedge Fd

Other International Funds
NAV

423.99

-1.12 0.00

Equinox Fund Mgmt (Guernsey) Limited

Regulated
Equinox Russian Opportunities Fund Limited $ 103.03

(GSY)

0.19 0.00

Smaller Cos Cls Two Shares (Est) 21.32

0.11 0.00

Smaller Cos Cls Three Shares (Est) 10.58

0.07

Smaller Cos Cls Four Shares (Est) 13.76

0.09 0.00

4.93

0.00 0.96

CMI US Dllr Currency Reserve

9.81

0.00 0.50

CMI Access 80% Gu F

5.65

0.00 0.00

0.08 1.86

-0.02 2.13

7.96

Dominion Fund Management Limited

9.50 0.00

Cohen & Steers SICAV

(LUX)

Regulated
European Real Estate Securities

19.0905

-0.2217 1.56

Europ.RealEstate Sec. IX

25.1280

-0.2917 0.00

Gbl RealEstate Sec. I

$ 10.7837

-0.0211 1.34

Gbl RealEstate Sec. IX

$ 12.5761

-0.0247 0.00

(LUX)

www.creditandorra.com
FCA Recognised
Crediinvest SICAV Money Market Eur I 11.23

0.00 0.00

Crediinvest SICAV Money Market Usd A $ 10.02

0.00 0.00

Crediinvest SICAV Fixed Income Eur 10.88

0.00 0.00

Crediinvest SICAV Fixed Income Usd $ 10.70

Crediinvest SICAV Spanish Value 252.90
Crediinvest SICAV International Value 212.60
Crediinvest SICAV Big Cap Value 16.57

0.00 0.00
-1.15 0.00

-0.06 0.00

2.17 0.00 5.97

Crediinvest SICAV Sustainability 14.47

0.10 0.00

Regulated
Dantrust II Limited

0.02 0.00

DGT - Strategic I Class

1.14

0.00 0.00

DGT - Strategic R Class

1.15

0.00 0.00

Dominion Fund Management Limited

Other International Funds
DX EVOLUTION PCC LIIMITED - DXE () FUND 97.78 97.78 1.81 0.00
DX EVOLUTION PCC LIMITED - DXE (US$) FUND $ 111.73 111.73 2.39 0.00

(LUX)

Regulated
Davis Value A

$ 40.58

-0.10 0.00

Davis Global A

$ 29.74

-0.24 0.00

Dragon Capital Group

c/o 1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam
Fund information, dealing and administration: funds@dragoncapital.com
Other International Funds
Vietnam Enterprise Inv. (VEIL) NAV $ 3.41 - -0.02 0.00
Vietnam Growth Fund (VGF) NAV $ 22.92

-0.38 0.00

-0.10 0.00

-0.27 0.00

0.01 0.00

Regulated
Foord International Trust

$ 34.35

(GSY)

FourWinds Capital Management (UK) Limited (LUX)

Contact +442075187970,info@fourwindscm.com,www.fourwindscm.com
Regulated
Bache Global Series - Alternative Benchmark Commodity Index
USD Inst. Accumulation Shares $ 52.85 55.49 -0.10 USD Inst. Annual Distribution Shares $ 75.78 79.57 0.00

EUR Inst. Accumulation Shares

74.55 74.55 -0.05

GBP Inst. Accumulation Shares

72.76 72.76 -0.17

-8.79 0.00

JPMorgan House - International Financial Services Centre,Dublin 1, Ireland

Other International Funds
Franklin Emerging Market Debt Opportunities Fund Plc
Franklin Emg Mkts Debt Opp CHFSFr 19.14 - -0.26 5.85
Franklin Emg Mkts Debt Opp EUR 12.88

-0.15 5.84

Franklin Emg Mkts Debt Opp GBP 10.97

-0.08 5.77

Franklin Emg Mkts Debt Opp SGD S$ 23.81

-0.24 5.77

Franklin Emg Mkts Debt Opp USD $ 18.64

-0.25 5.77

(CYM)

Franklin Templeton Investment Funds

(LUX)
8A rue Albert Borschette / L-1246 Luxembourg
www.franklintempleton.co.uk UK freephone 0 800 305 306
FCA Recognised
Class A Dis
Frk Gbl R.Estate (USD) A Dis
$ 9.96 - -0.02 2.21
Frk High Yield

6.89

0.00 5.32

Frk Euro Gov. Bond

11.16

-0.03 1.05

Frk Euro High Yield

6.54

0.01 4.62

Frk Euro Liquid Reserve

4.37

0.00 0.00

Frk Euro Short Dur Bond Fd

10.17

0.00

Eurobank Fund Management Company (Luxembourg) S.A. (LUX)

Frk Europ Corp Bond Fd

11.37

-0.02 1.67

Regulated
(LF) Absolute Return

1.32

0.00 0.00

Frk European Total Return

10.07

-0.02 1.63

(LF) Balanced - Active Fund (RON)RON 15.99

0.07 0.00

Frk Global Aggr.Inv.Grd Bond Fd

$ 10.68

0.01 0.00

(LF) Cash Fund

0.00 0.00

Frk Global Aggregate Bond Fd

$ 10.14

0.01 1.32

$ 10.64

0.00 5.30

1.42

0.00 0.00

Frk Global Income Fd

(LF) Eq Emerging Europe

0.83

-0.01 0.00

Frk Income

$ 12.76

-0.04 2.99

(LF) Eq Flexi Style Greece

1.44

-0.02 0.00

Frk US Government

9.50

0.01 2.34

0.01 0.00

Frk US Liquid Reserve Inc

9.67

0.00 0.00

(LF) Cash Fund (RON)

(LF) Global Bond Fd

(GSY)

kr 459.40 459.50 -1.10 0.00

DAVIS Funds SICAV

(LUX)
17 square Edouard VII - 75009 Paris, www.comgest.com
FCA Recognised
Comgest Asia F
$ 4054.35 - 22.84 0.00

127.25

-0.19 0.00

Crediinvest SICAV US American Value $ 18.50

Dantrust Management (Guernsey) Ltd

DGT - Consumer R Class

-2.58 0.00

-44.22 0.00

Comgest SA

PO Box 660 Ground Floor, Tudor House Le Bordage St Peter Port

Guernsey - Channel Islands United Kingdom GY1 3PU
+44(0)1481 734343 investorservices@dominion-funds.com www.dominion-funds.com
FCA Recognised
0.02 0.00
DGT - Consumer I Class
131.67 -

Crdit Andorr Asset Management

$ 18.24

Franklin Templeton International Services Sarl (IRL)

42.78

Latin American Fund USD Class

-0.67 0.00

Regulated
Smaller Cos Cls One Shares (Est) 29.87

45.69

American Fund GBP Hedged

Foord Asset Mgt (Guernsey) Ltd

EFG Hermes

Euronova Asset Management UK LLP

3.20 0.00

0.00 0.00

Global Technology A-GBP

CC Japan Inc & Grwth Fd - USD Founder Inc $ 15.23 15.23 0.04 0.00

CMI Stlg Currency Reserve

CC Japan Inc & Grwth Fd - USD Founder Acc $ 16.04 16.04 0.04 0.00

0.00 0.65

(IRL)

0.23

2.45

-0.01 0.02

Regulated
Cheyne Convertibles Absolute Return Fund 1323.15

0.00 0.00

Currency Reserve Sub Funds

CMI Euro Currency Reserve
24.98

Cheyne Capital Management (UK) LLP

-0.02 0.96

European Opportunities A EUR

2.58

22.4772 0.00

2.17

0.00 0.51

Global Equity

Raffles-Asia Investment Company $

CC Japan Inc & Grwth Fd - JPY Founder Inc 1537.97 1537.97 3.47 0.00

0.00 0.00

1.46

0.00 0.00
-0.14 0.00

1.20

0.00 0.20

$ 1414.4820

0.52

CATCo Re Fund Ltd Series E

$ 741.83

19.63

Global Real Asset Securities

2.33

0.01 1.56

$ 345710.32 345710.32 -2578.72 0.00

EUR Accumulating Share Class

18.59

0.00 0.00

Global Health Care A-GBP

Global Inflation-Linked Bd A-GBP-Hdg

Global Network Mgd Global Mxd

Chartered Asset Management Pte Ltd

GBP Accumulating Share Class

0.09 0.27

0.00 1.31

CC Japan Inc & Grwth Fd - JPY Founder Acc 1631.76 1631.76 3.69 0.00

$ 13.20

0.00 0.01

Dodge & Cox Worldwide Funds plc-U.S. Stock Fund

USD Accumulating Share Class $ 18.73 - -0.01 0.00

0.00 0.87

CMI US Bond

-0.15 0.00

0.42

3.13

21.0045 0.00

1.00

CC Japan Inc & Grwth Fd - GBP Founder Inc 15.29 15.29 0.04 0.00

4.01

1.47

CC Japan Inc & Grwth Fd - GBP Founder Acc 16.10 16.10 0.03 0.00

14.80

Global Financial Services A-GBP

European Opportunities I USD

$ 1389.9270

(IRL)

CC Japan Inc & Grwth Fd - Cls Acc USD $ 15.70 15.70 0.04 0.00

EUR Accumulating Share Class

China Focus A-GBP

0.00 0.00

-0.04 0.00

(LUX)
2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg
Phone: 800 22 089, 800 22 088
Regulated
China Consumer A-GBP
14.43 0.12 0.00

Saudi Arabia Equity Fund

0.00 0.00

0.68

18.20

Middle East & Developing Africa Fund (Final) $ 19.81

GBP Accumulating Share Class

11.12

Global Industrials A-GBP

EUR Accumulating Share Class

CATCo Re Fund Ltd Series D

Charles Schwab Worldwide Funds Plc

CC Asian Evolution Fd. Cls A USD $ 15.08 15.08 -0.07 0.00

(LF) FOF Dynamic Fixed Inc

0.01 1.56

Dodge & Cox Worldwide Funds plc-Global Stock Fund

USD Accumulating Share Class $ 17.34 - -0.05 0.00

0.00 0.00

0.00

CC Asian Evolution Fund - Cls C USD Acc $ 16.94 16.94 -0.09 0.00

CMI UK Bond

9.84 -0.01 0.00

1.99

0.00

0.01 2.16

296.42

9.84

0.86

10.73 0.00

Offer D+/- Yield

European Opportunities I GBP

12.08

25.9697

CC Asia Alpha Fd - Cls I USD

(IRL)
27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143
Dealing - Fax only - +353 1 434 5230
FCA Recognised
Edinburgh Partners Opportunities Fund PLC
European Opportunities I EUR
2.51 - -0.03 1.34

9.74

CMI UK Equity

24.1076

355.85

-1.27 2.84

9.84

-0.03 0.64

Cedar Rock Capital Fd Plc

11.02 0.00

12.31 12.31 -0.01 0.00

Bid

(LF) FOF Gl Emerging Mkts

FIL Fund Management

114.79

13.38

$ 1665.2871

CC Asia Alpha Fd - Cls C GBP

Fund

(LUX)

USD Accumulating Class

GBP Distributing Share class

$ 1621.9448

$ 354.98

0.00 0.00

GBP Distributing Class (H)

CC Asian Evolution Fd. Cls B GBP 14.20 14.20 -0.06 0.00

CATCo Re Fund Ltd Series B

(IRL)

$ 12.47 12.47 -0.01 0.00

16.32 0.86

Regulated
CATCo Re Fund Ltd Series A

Regulated
Cedar Rock Capital Fd Plc

DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE
Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com
Other International Funds
The EFG-Hermes Egypt Fund
$ 29.93 0.00

Bond Sub Funds

CMI Euro Bond F

Cedar Rock Capital Limited

CC Asia Alpha Fd - Cls B USD

(IRL)

Single Country Equity Sub Funds

CMI Japan Enhanced Equity F
4150.50

Managed Sub Funds

Global Bond

CATCo Reinsurance Fund Ltd.

Dodge & Cox Worldwide Funds

0.05 0.00

Pegasus Fund Ltd B-1 EUR

CMI Pacific Basin Enhanced Equity $ 44.41

Offer D+/- Yield

(IRL)

Global Emerging Markets - Class A $ 15.99

31/32 St James's Street, London, SW1A 1HD

FCA Recognised
CC Asia Alpha Fd - Cls A Euro
12.70 12.70 -0.01 0.00

Deutsche Invest I Clean Tech GBP RD Inc 60.41 60.41 0.26 0.18

+44 (0)20 7389 8840 www.coronation.com

Enquiries: +27 (21) 680 2837/2457 coronationfunds@coronation.co.za
Other International Funds
Global Equity Fund of Funds - Class A $ 14.54 0.01 0.00

0.03 0.00

$ 19.45

Deutsche Invest I Chinese Eq.GBP RD Inc 112.73 112.73 2.26 1.00

Coronation Fund Managers

Cap Group Euro Bond B

Tel: + 44 207 545 9070 www.dws.co.uk

FCA Recognised
Deutsche Invest I Africa GBP RD1 Inc 154.97 154.97 -0.43 0.94

Deutsche Invest I Global Agrib.GBP LD DS Inc 102.75 108.16 -0.01 0.33

SFr 19.05

-0.02 1.22

0.78

Edinburgh Partners Limited

(LUX)

Deutsche Invest I Conv.GBP RDH Inc 163.49 163.49 0.08 0.45

Coupland Cardiff Funds Plc

CAM GTi Limited

-0.02 0.00

9.73

Other International Funds

CAM-GTF Limited

12.14

Regulated
Schwab USD Liquid Assets Fd

Comgest Gth GEM PC DIS F

17.79

$ 10.53

Cap Group Euro Bond B

www.dsmsicav.com
Regulated
Global Growth I2 Acc

Deutsche Asset Management UK Ltd.

0.00 0.00

Bid

DSM Capital Partners Funds

Deutsche Invest I Top Asia GBP RD Inc 155.41 155.41 1.94 0.75

-0.12 0.00

Fund

Vietnam Property Fund (VPF) NAV $

(IRL)

-1.11

Cedar Rock Capital Fd Plc

Comgest AM International Ltd

Cheyne Real Estate Debt Fund Class A1 128.13

SFr 13.53

Offer D+/- Yield

-0.17 0.00

0.11 0.32

Cap Group Global Bond B

0.09 0.03

Income Funds
Cap Group Em Mkts Debt B

Bid

(FRA)

-0.01 0.00

Fund

-27.81 0.00

7.00

Cap Group Global Bond B

-29.32 0.00

Cap Group Euro Bond BD

Offer D+/- Yield

46 St Stephen's Green, Dublin 2, Ireland

FCA Recognised
Comgest Gth Asia ex Jap DIS F $ 7.87

$ 11.77

Cap Group Euro Bond B

Bid

SFr 5760.02

-1.53 0.00

Cap Group Em Mk Tot Opp Bd

Cap Group Em Mk LocCur Dbt B

Comgest Europe F

17 square Edouard VII - 75009 Paris

FCA Recognised
Comgest Magellan
19.63

Cheyne Capital Management (UK) LLP

Cap Group Em Mk Tot Opp B

7.61

Fund

Comgest SA

0.07 0.00

17.71

Offer D+/- Yield

0.36 0.00

Cap Group US Growth Inc B

$ 25.32

Bid

Cheyne European Real Estate Bond Fund 112.59

0.29 0.00

Cap Group Eur Growth Inc BD

Cap Group US Growth Inc B

Fund

RON 16.05

11.76

(LF) Global Equities

1.08

-0.01 0.00

Frk US Low Duration Fd

9.90

0.00 0.59

(LF) Greek Equities

0.29

-0.01 0.00

Frk US Total Return

$ 11.41

0.01 1.70

(LF) Eq Mena Fund

14.70

-0.05 0.00

Tem Asian Bond

$ 13.79

-0.01

$ 33.07

0.16 0.28

(LF) Greek Government Bond

16.68

0.14 0.00

Tem Asian Growth

(LF) Income Plus $

1.22

0.00 0.00

Tem Emerging Markets

$ 33.40

0.00 0.26

(LF) Greek Corporate Bond

11.90

0.02 0.00

Tem Emg Mkts Balanced AQdis

8.05

-0.01 2.75

(LF) FOF Balanced Blend

1.36

0.00 0.00

Tem Emg Mkts Bd

$ 18.31

-0.02

(LF) FOF Equity Blend

1.21

0.00 0.00

Tem Global

$ 34.73

-0.09 0.45

16 | FTfm

FINANCIAL TIMES Monday 8 December 2014

FTfm
Fund

Offer D+/- Yield

Fund

Tem Global (Euro)

17.45

Bid

Offer D+/- Yield

-0.16 0.39

Fund

GAM Star China Equity USD Acc F $ 22.50

Bid

Offer D+/- Yield

0.14 0.48

Hermes Global Equity Fund Class R Acc

Fund

Bid

3.61

3.61 -0.02 0.00

Invesco Global Structured Equity A $ 44.27

-0.14 0.94

Global Convertible B Hdg (Dis) F

$ 22.36

-0.04 0.00

Multi Asset Conservative B EUR Acc Non-Rpt

1.03

0.00 0.00

Tem Global Balanced

$ 23.17

-0.05 0.63

GAM Star Cont European Eqty GBP Acc F

3.23

0.01 0.00

Hermes Global ESG Equity Fund Class F Acc

1.12

1.12 0.00

Invesco Global Total Ret.(EUR) Bond Fund A 13.20

0.01 0.00

Global Convertible A Hdg EUR(Dis) F 15.47

-0.18 0.25

Multi Asset Conservative B GBP Acc Non-Rpt

1.06

0.00 0.00

Tem Global Bond

$ 21.22

-0.05 2.30

GAM Star Discretionary FX USD Acc F $ 12.14

-0.05 0.00

Hermes Global High Yield Bond Fund Class F Acc

1.17

1.17 0.01 0.00

Invesco Gold & Precious Metals A $

4.81

-0.12 0.00

Global Convertible B Hdg EUR (Cap) F 16.78

-0.03 0.00

Multi Asset Conservative B GBP Income Rpt

1.05

0.00 1.83

Tem Global Bond (Euro)

10.48

0.00 2.84

GAM Star Dynamic Gbl Bd USD Acc H $ 10.64

0.02 1.43

Hermes Global High Yield Bond Fund Class R Acc

2.83

2.83 0.00 0.00

Invesco Greater China Equity A

$ 47.51

-0.08 0.00

Global Convertible A Hdg CHF (Dis) FSFr 22.43

-0.04 0.22

Multi Asset Conservative B USD Acc Non-Rpt $

1.04

-0.01 0.00

Tem Global Equity Income

$ 10.35

-0.06 3.26

GAM Star Emerging Asia USD Class ACCU $ 12.81

-0.03 0.48

Hermes Multi Strategy Credit Fund Class F Acc Hed

1.01

1.01 -0.01

Invesco India Equity A

$ 50.96

-0.36 0.00

Global Convertible B Hdg CHF (Cap) FSFr 24.75

-0.03 0.00

Multi Asset Growth B EUR Acc Non-Rpt

1.12

-0.01 0.00
-0.01 0.00

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Tem Global High Yield Fd F

9.72

0.00 4.83

GAM Star Emerg. Market Rates USD Acc F $ 11.59

-0.01 0.00

Hermes Sourcecap EU Alpha Fund Class F Acc

1.24

1.24 0.00 0.00

Invesco Japanese Equity Adv Fd A 3605.00

7.00 0.00

Multi Asset Growth B GBP Acc Non-Rpt

1.15

Tem Global Income

$ 14.33

-0.03 1.61

GAM Star European Eqty USD Acc F $ 22.03

0.01 0.00

Hermes Sourcecap EU Alpha Fund Class F Dis

1.22

1.22 0.00 1.80

Invesco Japanese Value Eq Fd A 1182.00

5.00 0.00

Multi Asset Growth B GBP Income Rpt

1.16

0.00 0.00

Tem Global Smaller Cos

$ 33.51

-0.09 0.00

GAM Star Flexible Gbl Port GBP Ac 12.54

0.00 0.00

Hermes Sourcecap EU Alpha Fund Class R Acc

2.80

2.80 -0.01 0.00

Invesco Latin American Equity A $

8.28

-0.11 0.00

Multi Asset Growth B USD Acc Non-Rpt $

1.13

-0.01 0.00

Tem Global Total Return

$ 18.08

-0.04 3.52

GAM Star GAMCO US Equity Acc F $ 13.70

-0.05 0.00

Hermes Sourcecap EX UK Fund Class F Acc

1.29

1.29 0.00 0.00

Invesco Nippon Small/Mid Cap Equity A 1013.00

6.00 0.00

Sterling Fixed Income B GBP Income Rpt

0.96

0.00 3.86

Tem Latin America

$ 54.42

-1.13 0.76

GAM Star Global Conv Bond USD Acc F $ 11.24

0.01 0.00

Hermes Sourcecap EX UK Fund Class R Acc

2.84

2.84 -0.01 0.00

Invesco Pan European Equity A EUR Cap NAV 18.07

-0.05 0.00

USD Currency B USD Acc Non-Rpt $

0.97

0.00 0.00

GAM Star Global Rates USD Acc F $ 12.37

-0.06 0.00

Hermes UK Small & Mid Cap Fund Class F Acc

1.44

1.44 0.00 0.00

Invesco Pan European High Income Fd A 13.85

0.00 2.12

GAM Star Global Selector USD Acc F $ 14.99

-0.04 0.00

Hermes UK Small & Mid Cap Fund Class R Acc

4.04

4.04 0.00 0.00

Invesco Pan European Small Cap Equity A 18.36

0.05 0.00

GAM Star Japan Eqty USD Acc F $ 12.33

0.11 0.38

Hermes US SMID Equity Fund Class F Acc

1.49

1.49 -0.01 0.00

Invesco Pan European Structured Equity A 15.40

-0.03 0.00

GAM Star Keynes Quant Strat USD Acc F $ 11.54

-0.03 0.00

Hermes US SMID Equity Fund Class R Acc

2.98

2.98 -0.02 0.00

GAM Star Local EM Rates and FX USD Acc $ 12.14

-0.02 0.00

GAM Star Technology USD Acc F $ 15.87

0.03 0.00

Impax Asset Management

GAM Star US All Cap Eqty USD Acc F $ 14.12

-0.07 0.00

GAM Star Worldwide Eqty USD Acc F $ 3316.41

-23.43 0.35

Norfolk House, 31 St James's Square, London, SW1Y 4JR

FCA Recognised
Env Mkts (Ire) Stl A
2.19 0.01 -

Class A Acc
Frk Biotech Discovery

$ 30.87

-0.22 0.00

Frk Brazil Opportunities Fd

$ 10.56

0.01 0.00

Frk Euro S-Term Money Mkt Fd

1012.45

-0.01 0.00

Frk Euroland Fund

17.55

-0.24 0.00

Frk European Growth

Frk European Sml Mid Cap Gth
Frk Gbl Equity Strategies Fd
Frk Gbl Fundamental Strat Fd
Frk Global Conver.Securities

13.99
29.39
$ 11.58
$ 13.27
$ 11.68

-0.17 0.00
-0.12 0.00
0.01 0.00
-0.03 0.00
-0.01 0.00

Frk Global Growth

$ 14.44

-0.01 0.00

Frk Global Gth & Val

$ 25.09

-0.04 0.00

Env Mkts (Ire) Euro A

GYS Investment Management Ltd

Regulated
Taurus Emerging Fund Ltd

(GSY)

$ 28.67

0.11 0.00

Frk Gold and Precious Mtls Fd F

3.89

-0.07 0.00

Frk India

$ 33.01

0.04 0.00

PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108
International Insurances
Global Multi-Strategy Managed $ 4.84 5.21 -0.03 0.00

Frk Japan Fd

815.74

5.44 0.00

UK Multi-Strategy Managed

4.78

Frk K2 Alt Strat Fd

$ 10.28

0.00

EU Multi-Strategy Managed

2.79

Frk MENA Fund

Frk Mutual Beacon
Frk Mutual Euroland Fd

6.95

$ 71.40
16.34

0.03 0.00

Global Bond USD

3.60

1.89
1.80

-0.02
0.01

Other International Funds

Emerging Mkts NAV

-0.02 0.00

Invesco US Structured Equity A

$ 22.16

-0.05 0.00

JB BF Abs Ret EM-USD B

$ 118.89

0.05 0.00

Invesco US Value Eq Fd A

$ 33.20

-0.14 0.00

JB BF Abs Ret-EUR B

132.36

-0.03 0.00

Invesco USD Reserve A

$ 87.02

0.00 0.00

JB BF Abs Ret Pl-EUR B

131.69

-0.07 0.00

JB BF EM Corporate-USD B

$ 107.51

-0.03 0.00

JB BF EM Infl Link-USD B

$ 99.78

-0.10 0.00

JB BF EM Inv Grade-USD B

$ 101.73

0.07 0.00

JB Emerging (EUR)-EUR B

338.99

0.14 0.00

JB Emerging (USD)-USD B

$ 413.82

Invesco Global Asset Management Ltd

(IRL)

6.87

0.02 0.10

0.08 0.59

www.invil.mu
Other International Funds
NAV

Invesco Bond A

$ 27.47

0.02 2.10

5.15 -0.01 0.00

Invesco Continental Eurp Small Cap Eqty A $ 190.57

0.73 0.00

3.01 0.03 0.00

Invesco Emerging Markets Equity A $ 40.53

-0.26 0.00

6.75

0.03 0.00

Invesco Emerging Markets Bond A $ 21.44

3.88 -0.02 0.00

-0.26 0.00

-0.05 0.00

Frk Natural Resources Fd F

7.85

-0.11 0.00

Invesco Continental European Equity A

Frk Real Return Fd F

$ 10.60

-0.02 0.00

Frk Strategic Income Fd

$ 14.81

0.00 0.00

Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490
International Insurances
Holiday Property Bond Ser 1
0.53 0.00 0.00

Frk Technology

$ 10.69

0.01 0.00

Holiday Property Bond Ser 2

Frk U.S. Focus Fund

$ 16.34

0.01 0.00

Frk US Equity

$ 24.05

0.00 0.00

Frk US Opportunities

$ 11.75

Frk US Sml Mid Cap Gth F

$ 19.25

Frk Wrld Perspective Fd

Tem Africa

-0.03 0.00

-0.01 4.61

7.95

-0.02 0.08

14.67

-0.04 1.58

(IRL)
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
FCA Recognised
IVI European Fund EUR
15.58 - -0.11 0.00

Invesco Global Small Cap Equity A NAV $ 121.37

-0.14 0.00

IVI European Fund GBP

Invesco Global High Income A NAV $ 12.85

-0.01 5.35

Invesco Gbl R/Est Secs A GBP F F

7.73

0.00 0.77

Invesco Global Health Care A

$ 129.47

-0.20 0.00

Invesco Global Select Equity A

$ 13.50

-0.01 0.00

Invesco Jap Eqty Core A

1.71

-0.01 0.00

Invesco Japanese Equity A

$ 17.77

-0.03 0.00

Invesco Korean Equity A

$ 27.42

-0.03 0.00

16.92

0.05 0.32

HPB Assurance Ltd

0.62

$ 103.47

22.69

112.71

Invesco ASEAN Equity A

$ 17.76

5.89

JB BF Abs Ret Def-EUR B

Invesco Asian Equity A

Frk Mutual Gbl Disc

0.00 2.73

Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200

FCA Recognised
Invesco Stlg Bd A QD F
2.62 0.00 3.75

Intrinsic Value Investors (IVI) LLP

Genesis Asset Managers LLP

30.15

-0.18 0.00
-0.20 0.00

0.11 0.00

0.98

Invesco UK Eqty Income A

INDIA VALUE INVESTMENTS LIMITED (INVIL)

Generali International Limited

Frk Mutual European EUR

0.00 0.00

Hamon Investment Group

Invesco Gilt A

-0.01 0.00

Other International Funds

Asian Market Leaders - USD

$ 26.12

-0.05 0.00

Invesco PRC Equity A

$ 51.38

-0.10 0.11

-0.06 0.00

Asian Market Leaders - GBP

13.04

0.01 0.00

Invesco Pacific Equity A

$ 50.16

-0.06 0.00

$ 19.13

-0.03 0.00

Greater China - USD

$ 10.92

-0.04 0.00

Invesco Global Technology A

$ 15.48

0.00 0.00

$ 11.40

-0.09 0.00

Greater China - GBP

0.00 0.00

Invesco UK Eqty A

0.02 1.14

Selected Asian P'folio

$ 49.25 49.26 0.15 0.00

4.41

Tem Asian Sml Comp Fd

$ 38.65

0.13 0.00

Tem BRIC

$ 14.25

0.00 0.00

Tem China

$ 22.77

0.28 0.00

Tem Eastern Europe

18.97

-0.27 0.00

Other International Funds

Haussmann Cls A

$ 2704.92

52.90 0.00

Tem Emerging Mkts Sml Comp Fd $ 10.11

0.02 0.00

Haussmann Cls C

2365.06

46.34 0.00

Tem Euroland

17.64

-0.27 0.00

Haussmann Cls D

SFr 1267.77

24.73 0.00

Tem European EUR

19.42

-0.28 0.00

Tem Frontier Mkts Fund

$ 19.18

0.06 0.00

Tem Growth (Euro)

15.04

-0.15 0.00

Tem Korea

0.07 0.00

Tem Thailand

Env Mkts (Ire) USD A

$ 236.91 241.75 5.05 0.00

Frk Global Sml Mid Cap Gth

(LUX)
funds@swissglobal-am.com, www.jbfundnet.com
Regulated
0.00 0.00
JB BF ABS-EUR B
105.55 -

Invesco UK Investment Grade Bond A

(IRL)

5.43

$ 21.92

-0.05 0.00

Haussmann

Heartwood Wealth Management Limited

Regulated
Heartwood Caut Multi Asset B Acc

139.87

(IRL)

-0.07 0.00

71.42

-0.53

Global Real Estate-GBP C Class

45.26

-0.50

(IRL)
FCA Recognised
GAM Fund Management Ltd
Georges Court, 54-62 Townsend Street, Dublin 2 + 353 1 6093927
GAM Star Fund Plc
GAM Star Asia-Pacific Eqty USD Acc F $ 12.13 0.09 0.76
GAM Star Asian Eqty USD Ord Acc F $ 14.27

0.04 0.00

GAM Star Balanced GBP Acc

10.25

0.01

GAM Star Cap.Appr.US Eqty USD Inc F $ 17.47

GAM Star Cat Bond USD Acc

$ 12.40

GAM Star Cautious GBP Acc

10.28

Invesco Asia Balanced A dist

$ 15.84

Invesco Asia Consumer Demand Fund A income $ 13.94

Invesco Asia Infrastructure (A)

$ 13.23

(IRL)
Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
FCA Recognised
Hermes Active UK Inflation Fund Class F Acc 1.26 1.26 0.00 0.00
Hermes Asia Ex-Japan Equity Fund Class F Acc

1.49

-0.43 0.00

0.03 0.00
0.01 0.00

Invesco Emerging Europe Equity Fund A $

8.54

-0.18

Invesco Emerging Local Currencies Debt A Inc $

8.71

-0.03 5.62

Invesco Emerging Mkt Quant.Eq. A $ 11.19

-0.04 0.00

Invesco Energy A

-0.46 0.00

$ 23.85

0.01

Invesco Euro Inflation Linked Bond A 15.47

-0.02 0.00

Invesco Euro Reserve A

0.00 0.00

322.89
6.76

0.00 0.00

Invesco European Growth Equity A 21.66

-0.08 0.00

Invesco Global Absolute Return Fund A Class 11.61

0.00 0.00

Invesco Global Bond A Inc

5.66

0.8839xd

-0.0008 5.16

International

4.3960

-0.0080 1.23

North American

15.8200

-0.0700 0.00

Sterling Bond

1.4890

-0.0020 3.67

UK

-0.0020 2.07

1.2200xd

-0.0010 2.07

JB BF Local EM-USD B

$ 299.22

0.09 0.00

JB BF Total Ret-EUR B

99.71

-0.02 0.00

Lloyds Money Fund Limited

Australian Dollar
A$ 172.8620

0.0080 1.64

JB EF Abs Ret Eur-EUR B

117.95

0.04 0.00

Euro

JB EF Euro Value-EUR B

184.30

-2.68 0.00

JB EF Japan-JPY B

16432.00

60.00 0.00

JB EF Luxury B-EUR B

211.76

-1.03 0.00

JB Ms EF Special Val. EUR/A

135.11

-1.44 0.81

JB Strategy Balanced-CHF/B

SFr 155.78

154.28

JB Strategy Balanced-EUR
JB Strategy Balanced-USD/B
JB Strategy Growth-CHF/B

$ 133.83

0.0000 0.00

0.0200 2.68

Sterling Class

52.5180

0.0010 0.22

US Dollar Class

0.0000 -0.18

-0.51 0.00

-0.0010 2.30

-0.50 0.00

Growth Strategy

1.4850

-0.0020 1.64

0.05 0.00

Aggressive Strategy

1.7930

0.0010 0.00

Global USD Growth Strategy

$ 1.4270

-0.0010 0.00

-0.45 0.00

115.28

-0.53 0.00

SFr 124.65

-0.31 0.00

JB Strategy Inc-EUR/B

160.23

-0.43 0.00

JB Strategy Inc-USD/B

$ 150.60

0.05 0.00

JB Strategy Inc-CHF/B

$ 60.6000

SFr 98.05

JB Strategy Growth-EUR

52.7210
NZ$ 208.7060

New Zealand Dollar

Lloyds Multi Strategy Fund Limited

Conservative Strategy
1.1080

Dealing Daily

Lombard Odier Funds (Europe) S.A

(IRL)

(LUX)

www.loim.com
Regulated
Lombard Odier Funds
Absolute Ret Bond (EUR) PA

12.06

-0.03 0.00

Absolute Ret Bond (USD) PA

$ 17.68

-0.05 0.00

All Roads (CHF) PA

SFr 17.84

-0.03 0.00

All Roads (USD) PA

$ 11.25

-0.01 0.00

All Roads (GBP) PA

11.46

-0.01 0.00

All Roads (EUR) PA

11.42

-0.01

High Yield Global Bond A GBP Inc

541.91

-0.04 3.70

Alpha Japan (EUR) PA F

10.85

0.05 0.00

0.00 1.10

Invest AD
Client services: +971 2 692 6101 clientservices@InvestAD.com
Other International Funds
Invest AD - Iraq Opportunity Fund $ 74.09 - -0.56 0.00

High Yield Global Bond B GBP Inc

1126.01

-0.06 4.22

Alpha Japan (CHF) PA F

SFr 13.64

0.06 0.00

Investment Grade Global Bd A GBP Inc

560.29

0.60 2.34

Alpha Japan (JPY) PA F

1286.00

6.00 0.00

Kames Global Equity Income B GBP Acc 11.11

0.00 0.00

Alpha Japan (USD) PA F

$ 15.55

0.07 0.00

Invest AD - Emerging Africa Fund $ 1241.73

2.87 0.00

Invest AD - GCC Focus Fund

11.74 0.00

$ 1741.91

Kames Global Equity Income B GBP Inc 10.83

0.00 2.46

Alternative Beta PA F

SFr 121.06

0.02 0.00

Strategic Global Bond A GBP Inc

1106.02

0.96 2.15

Alternative Beta PA F

81.07

0.00 0.00

Strategic Global Bond B GBP Inc

627.31

0.55 2.64

Alternative Beta PA F

$ 121.11

JPMorgan Asset Management (Europe) S.. r.l. (FRA)

6 route de Trves L - 2633 Senningerberg - Luxembourg
FCA Recognised
Star Capitol America
Star Capitol America D
2399.22 - -25.28 0.00

Jefferies Umbrella Fund

(LUX)
11 Rue Aldringen, L-1118 Luxembourg 00 352 468193626
FCA Recognised
Europe Convertible Bd A (Dis) - D - EUR F 13.06 - -0.05 1.08
Europe Convertible Bd B (Cap)

14.86

-0.06 0.00

Kleinwort Benson (CI) Inv Man Ltd

Regulated
Kleinwort Benson Elite PCC Ltd
EUR Currency B EUR Acc Non-Rpt

0.98

(GSY)

EUR Fixed Income B EUR Income Rpt

1.01

0.00 0.00

GBP Currency B GBP Acc Non-Rpt

0.99

0.00 0.00

International Bond B GBP Acc Non-Rpt

0.92

-0.01 0.00

International Equity B GBP Acc Non-Rpt

1.26

-0.07 0.00

Global Convertible A (Dis) F

$ 19.10

0.00 0.26

Multi Asset Balanced B EUR Acc Non-Rpt

1.09

0.00 0.00

-0.01 2.45

Global Convertible B (Cap) F

$ 22.69

0.00 0.00

Multi Asset Balanced B GBP Acc Non-Rpt

1.11

-0.01

3.03

3.03 -0.02 0.00

-0.06 0.00

Hermes Global Emerging Markets Fund Class F Acc

1.21

1.21 0.00 0.00

Invesco Global Inv Grd Corp Bond A Dist $ 11.95

-0.01 0.00

Hermes Global Emerging Markets Fund Class R Acc

2.84

2.84 -0.03 0.00

Invesco Global Leisure A

$ 35.64

-0.10 0.00

Global Convertible B Hdg GBP (Cap) F 14.95

-0.03 0.00

Multi Asset Balanced B USD Acc Non-Rpt $

1.10

0.00 0.00

0.01

Hermes Global Equity Fund Class F Acc

1.47

1.47 -0.01 0.00

Invesco Global Smaller Comp Eq Fd A $ 54.05

-0.03 0.00

Global Convertible Hdg A (Cap) F $ 18.79

-0.03 0.27

Multi Asset Balanced C GBP Income Rpt

1.43

0.00 1.13

Global Convertible A Hdg GBP(Dis) F 12.72

-0.02 0.24

Multi Asset Balanced B GBP Income Rpt

1.39

0.02 0.00

SFr

6.80

0.02 0.00

Commodities (EUR) PA

6.86

0.02 0.00

Commodities (USD) PA

7.01

0.02 0.00

Convertible Bd P A

16.87

-0.01 0.00

Convertible Bd Asia PA F

SFr 13.55

0.01 0.00

Convertible Bd Asia PA F

14.36

0.01 0.00

Convertible Bd Asia PA F

$ 14.44

0.01 0.00

Emerg. Consumer (CHF) PA

SFr 12.92

-0.03 0.00

Emerg. Consumer (EUR) PA

12.99

-0.03 0.00

Emerg. Consumer (USD) PA

$ 12.97

-0.03 0.00

Emerg.Eq. Risk Par.(EUR) PA

8.50

-0.10 0.00

Emerg. Eq. Risk Par.(USD) PA

7.39

-0.01 0.00

0.00 0.00

0.01 3.13

Commodities (CHF) PA

0.00 0.00

Hermes Asia Ex-Japan Equity Fund Class R Acc

0.0120 0.91

High Income

Monthly Share

Invesco Global Equity Income Fund A $ 60.16

0.21 0.00

1.49 -0.01 0.00

9.56

0.0000 3.35

7.6140

0.0140 1.42

Invesco Global Inc Real Estate Sec A dist $

European

-0.05 1.53

Lloyds Investment Funds Limited

Euro High Income
1.6940

1 North Wall Quay, Dublin 1, Ireland +35 3162 24493

FCA Recognised
0.10
Absolute Return Bond B GBP Acc 1073.03 -

0.04 0.18

PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
Other International Funds
Lloydstrust Gilt
12.2400 - -0.0200 2.52

6.9520

Kames Capital VCIC

0.01 3.41

Invesco Balanced Risk Allocation Fund A 15.30

Invesco European Bond A

Hermes Investment Funds Plc

Invesco Asia Opportunities Equity A $ 104.67

Invesco Euro Corporate Bond Fund (A) 17.20

GAM Limited

8.21

Lloyds Investment Fund Managers Limited (1000)F (JER)

Lloyds Gilt Fund Limited

Lloyds Gilt Fund Quarterly Share 1.2690

(LUX)
Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282
FCA Recognised
Invesco Management SA
Invesco Active Multi-Sector Credit Fund A 2.89 0.01 0.00

Invesco Capital Shield 90 (EUR) A 11.99

Frontier Capital (Bermuda) Limited

Other International
Commercial Property-GBP Class

Invesco

Swiss & Global Asset Management

0.00 0.26

FTfm | 17

FINANCIAL TIMES Monday 8 December 2014

FTfm
Fund

Bid

Offer D+/- Yield

Emerg. Loc.Cur.&Bds DH (CHF) PASFr

8.35

0.01 0.00

Emerg.Loc.Cur.Bd.Fdt PA

Fund

Bid

Offer D+/- Yield

Fund

Global Conc.A1

Bid

$ 36.50

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

-0.07 0.00

U.S. Special Opportunities Fund Class AA Inc $ 0.9454

-0.0014

Fund

Bid

Offer D+/- Yield

Mir. - Glb Eq High Income A GBP 105.32

-0.15

9.44

-0.11 0.00

Lothbury Property Trust (UK)

Global Energy Fund A1

$ 14.74

-0.14 0.00

US Small Cap Equity Fund Class AA F $ 1.1040

0.0041 0.00

Mir. - Glb Eq High Income A USD $ 104.77

-0.23

Emerg.Loc.Cur.Bd.Fdt PA

11.30

-0.13 0.00

Global Equity A1

$ 46.21

-0.06 0.00

US Treasury Inflation-Protected Securities Fund Class AA F $ 1.2899

-0.0048 0.06

Mir. - Glb Strat. Bd A USD

$ 105.98

0.00 0.00

Emerg.Loc.Cur.Bd.Fdt PA

9.77

-0.01 0.00

155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900

Property & Other UK Unit Trusts
Lothbury Property Trust GBP
1624.35 1742.16 37.54 3.31

Global Equity A1

23.73

-0.15 0.00

Mir. Opp.- Activ.Strategies I

$ 100.00

SFr 15.82

0.00 0.00

Global Multi-Asset A1

$ 16.39

-0.03 0.00

Manulife Global Fund

Mir. Opp. -Emerg. Mkt HO

$ 109.06

0.00 0.00

Mir. Serenite A EUR

120.17

-0.24 0.00

MirAlt Sicav
MirAlt Sicav-Diversified A Cap.

$ 112.51

-0.60 0.00

MirAlt Sicav-Europe A dis

67.44

-0.50 0.00

MirAlt Sicav - North America A dis $ 163.38

2.44 0.00

Euro BBB-BB Fdt PA

SFr

Euro BBB-BB Fdt PA

12.40

0.00 0.00

Global Res.A1

$ 26.42

-0.07 0.00

Other International Funds

Asia Total Return Fund Class AA $ 1.0006

-0.0004

Euro BBB-BB Fdt PA

10.92

0.00 0.00

Global Total Return A1

16.17

-0.09 0.00

Asia Total Return Fund Class AA Inc $ 0.9683

-0.0003 3.51

Euro BBB-BB Fdt PA

$ 17.63

0.00 0.00

High Yield A1

$ 25.23

0.00 0.00

Asia Value Dividend Equity Fund Class AA F $ 1.6556

0.0023 0.00

Euro Credit Bd PA F

12.95

-0.01 0.00

Euro Government Fdt PA

12.33

-0.02 0.00

Euro Inflation-Lk Fdt PA

12.00

0.00 0.00

Euro Resp.Corp. Fdt PA

18.33

-0.01 0.00

Europe High Conviction PA

10.27

-0.06 0.00

Eurozone Small&Mid Caps PA

43.34

-0.11 0.00

Fdmt.Eq.L/S SH Sd EUR PA

10.16

0.01

M & G (Guernsey) Ltd

(GSY)
Regulated
The M&G Offshore Fund Range
158.51 165.12 0.03 0.00
American Fund
Corporate Bond

1323.62 1364.56 -1.33 3.23

Global Basics

2397.90 2497.82 -2.31 0.00

Global Leaders

Fdmt.Eq.L/S SH Sd USD PA

$ 10.16

0.01

Gl Aggregate High Conv PA

$ 19.07

0.00 0.00

Gbl.Gvt.Fdmt PA

10.19

-0.05 0.00

Global High Yield Bond

1006.82 1037.96 0.00 4.74

Global Macro Bond Fund

11196.52 11542.81 5.93 0.72

Optimal Income Fund

Gbl.Gvt.Fdmt.(CHF) PA
Gbl.Gvt.Fdt.SH (CHF) PA
Gbl.5B Fdmt (EUR) PA
Gbl.5B Fdmt (CHF) PA
Gbl.5B Fdmt SH (USD) PA
Generation Global (CHF) PA F

SFr 24.56

-0.07 0.00

Asia Value Dividend Equity Fund Class AA Inc $ 1.0103

0.0014

Inflation-Adjusted Bond A1

$ 14.21

0.02 0.00

Strategic Income Fund Class AA F $ 1.0772

-0.0001 4.45

Japan Equity A1

-0.02 0.00

9.64

Recovery Fund Limited 'A' Participating Shares

10812.95 11263.49 -31.90 0.58

Recovery Fund Limited 'I' Participating Shares

10865.69 11318.43 -31.19 1.51

Strategic Corporate Bond Fund

133.74 139.31 -0.11 3.13

UK Growth

1519.60 1582.91 1.65 1.12

SFr 12.99

-0.18 0.00

Generation Global (USD) PA F

$ 15.09

-0.01 0.00

9.05

SFr 21.23

(LUX)

-0.14 0.00

$ 122.15

-0.02 0.00

0.03 0.00

Em.Mk.Debt Fd.Yen 1

10361.00

-2.00 0.00

Golden Age (EUR) PA

14.41

0.03 0.00

Em.Mk.Debt Fd.Yen 2

15219.00

7.00 0.00

Golden Age (USD) PA F

$ 20.04

0.04 0.00

Em.Mk.Debt Fund Yen 3

10387.00

-1.00 0.00

3153.00

11.00 0.00

Em.Mk.Debt Fund Yen 4

15219.00

7.00 0.00

Harris Concentrated US Equity H-N/A (GBP) 150.66 150.66 0.12 0.00

Harris Concentrated US Equity R/D (GBP) 139.45 139.45 0.21 3.52
Loomis Sayles Strategic Alpha Bond Fund H-N/D(GBP) 99.82 99.82 0.04 1.74

Prudent Wealth Fd A1

$ 14.02

-0.01 0.00

Research Bond A1

$ 16.62

0.07 0.00

UK Equity A1

7.97

-0.03 0.00

US Conc.Growth A1

$ 15.50

0.00 0.00

US Government Bond A1

$ 16.99

0.02 0.00

$ 22.16

Marlborough Tiger Fund Ltd F

25.92 26.18 -0.19 0.00

Marwyn Asset Management Limited

Regulated
Marwyn Value Investors

526.47

(CYM)

Meridian Fund Managers Ltd

$ 235.74

-25.71

Global Energy & Resources Fund $ 63.53

-9.60

Other International Funds

MGS -Master Series

$ 199.54

-1.09

MEMO - Master Series

$ 495.51

-19.16 0.00

-16.59 0.00

Nevsky Fund Plc GBP Acc

1313.82

-16.85 0.00

Nevsky Fund Plc USD Acc

$ 1322.90

-16.71 0.00

Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 12.33

0.01 0.00

(LUX)

New Capital Fund Management Ltd

-1.36 0.00

104.96

-0.20 0.00

Sh.T- Money Mkt GBP PA

10.25

0.00 0.00

Em.Mk.Eq.Fd.US Dollar

$ 107.03

-0.28 0.00

American Growth Fund Class AA F $ 1.6468

0.0069 0.00

info@emmaplc.com,+44(0)20 8123 8369 www.emmaplc.com

Regulated
Milltrust ASEAN A
$ 99.82 - -0.88 0.00

0.0422

Milltrust Brazil A

$ 104.88

-2.41 0.00

(IRL)
Leconfield House, Curzon Street, London, W1J 5JB
FCA Recognised
New Capital UCITS Funds
Asia Pac Bd USD Inst Inc
$ 98.36 0.06 2.60

Emerging Markets Managed Accounts PLC (IRL)

Asia Pac Bd USD Ord Inc

$ 100.23

0.06 1.93

Asia Pac Eq EUR Ord Inc

104.82

0.19 2.40

Asia Pac Eq GBP Ord Inc

107.89

0.19 2.78

Asia Pac Eq USD Ord Inc

$ 108.55

0.20 2.43

Asia Pac Eq USD Inst Acc

$ 111.15

0.20 0.00

-0.20 0.00

Asia Pac Eq USD Inst Inc

$ 121.40

0.22 3.02

-0.10 1.06

Dyn Europ Eq EUR Ord Inc

151.65

-0.79 0.51

33.73

-0.29 0.00

Dyn Europ Eq GBP Ord Inc

162.35

-0.82 0.93

Emerg Europ, Mid-East & Africa Eq A F 64.09

-0.72 0.00

Dyn Europ Eq USD Ord Inc

$ 152.43

-0.78 0.63

Emerging Markets Debt A F

$ 78.03

0.11

China Equity EUR Ord Acc

150.16

3.59 0.00

Emerging Markets Domestic Debt AX F 12.77

-0.02 4.98

China Equity GBP Ord Acc

153.78

3.65 0.00

Emerging Markets Equity A F

$ 37.92

0.01 0.00

China Equity USD Ord Acc

$ 152.26

3.61 0.00

Euro Bond A F

15.58

0.00 0.00

China Equity USD Inst Acc

$ 155.18

3.69 0.00

Euro Corporate Bond AX F

24.00

0.19 2.09

Swiss Select Equity Inst Acc

SFr 109.52

-0.11

Euro Strategic Bond A F

43.26

-0.01 0.00

Swiss Select Equity Ord Acc

SFr 109.01

-0.11

European Currencies High Yield Bd A F 21.34

0.02 0.00

Total Ret Bd USD Ord Acc

$ 168.76

0.10 0.00

$ 10.30

0.00 0.00

Em.Mk.Loc.Ccy Debt Fd.FC

9765.00

-27.00 6.12

American Growth Fund Class AA (HKD) FHK$ 10.3297

SFr 23.65

0.00 0.00

Em.Mk.Loc.Ccy Debt Fd.FD

11771.00

-24.00 5.54

Asian Equity Fund Class A F

$ 3.1438

0.0025 0.40

Milltrust India A

$ 134.31

0.05 0.00

$ 96.12

-0.25 0.00

Asian Equity Fund Class AA F

$ 1.0130

0.0008 0.00

Milltrust Latin America A

$ 106.80

-4.79 0.00

(LUX)
6b Route de Trves L-2633 Senningerberg Luxembourg (352) 34 64 61
www.morganstanleyinvestmentfunds.com
FCA Recognised
US Advantage A F
$ 53.10 0.03 0.00

Milltrust Value Partners Greater China A $ 122.98

5.12 0.00

Asian Equity A F

$ 44.32

0.31 0.00

Asian Property A F

$ 19.03

Asian Property AX F

11.26

Diversified Alpha Plus A F

Sw.Fr.Credit Bd(For) PA

SFr 13.57

0.00 0.00

Em.Mk.Loc.Ccy Debt Fd II

Tactical Alpha (CHF) PA

SFr

9.96

-0.06 0.00

Gb.Conc.Eq.Fd.Euro

246.63

-2.53 0.00

Asian Small Cap Equity Fund Class AA F $ 2.2161

-0.0104 0.00

10.19

-0.06 0.00

Gb.Conc.Eq.Fd.Sterl.UK T

163.00

-0.01 0.00

Asian Small Cap Equity Fund Class AA (HKD)HK$ 8.9658

-0.0429

247.38

-0.03 0.00

China Value Fund Class A F

$ 8.4439

-0.0023 0.72

Tactical Alpha (USD) PA

$ 14.61

-0.08 0.00

Gb.Conc.Eq.Fd.Sterling

Technology PA

13.86

0.05 0.00

Gb.Conc.Eq.Fd.US

$ 194.15

-0.17 0.00

China Value Fund Class AA F

$ 2.6483

-0.0008 0.49

Technology PA

$ 21.06

0.07 0.00

Gb.Eq.Hdg Fd.Euro IRE T

174.37

-0.92 0.00

Dragon Growth Fund Class A F

$ 1.9914

0.0085 0.62

247.41

-1.30 0.00

Dragon Growth Fund Class AA HKDHK$ 9.6483

0.0403 0.59

-0.31 0.00

Gb.Eq.Euro Hdg Fd.

Wld Gold Expertise PA

9.81

-0.24 0.00

Gb.Eq.Fund Euro

254.49

-2.46 0.00

Emerging Eastern Europe Fund Class AA F $ 1.5459

-0.0235 0.42

Wld Gold Expertise PA

$ 12.84

-0.32 0.00

Gb.Eq. Fd Euro IRE T

160.80

-1.55 0.00

Emerging Eastern Europe Fund Class A F $ 3.5959

-0.0546 0.76

Gb.Eq.Fd.Sterling UK T

203.40

0.09 0.00

European Growth Fund Class A F $ 10.6896

0.0256 1.21

Gb.Eq.Fd.US Dollar

$ 316.41

-0.08 0.00

European Growth Fund Class AA F $ 0.7744

0.0019 0.59

Gb.Eq.Fund Sterling

201.57

0.09 0.00

Global Contrarian Fund Class AA F $ 0.9473

0.0008 0.00

Gb.Val.Ex-Jap.Fd.USD

$ 119.51

-0.25 0.00

Global Property Fund Class AA F $ 1.0004

-0.0021 0.75

Gb.Val.Ex-Japan Fd.Yen

14069.00

-21.00 0.00

Global Resources Fund Class AA F $ 0.8299

-0.0131 0.00

SFr 12.48

SFr 109.94
120.43
SFr 105.15
111.76

9.84

SFr 115.46

-0.61 0.00
-0.72 0.00
-0.25 0.00
-0.33 0.00
0.02 0.00
-0.89 0.00

Growth (EUR) PA F

128.53

-1.06 0.00

Vantage 1500 (EUR) MA

10.29

-0.01

10.55

-0.01

(LUX)

Regulated
Absolute Return A1

18.29

-0.10 0.00

Asia ex-Japan A1

$ 25.21

0.14 0.00

Bond A1

$ 10.36

0.02 0.00

CNY 100.58

-0.01

China Equity Fd A1

9.99

0.21 0.00

Inc.Pt.RMB Dt.SH CHF PA

SFr 10.16

-0.01

Continental European Eqty A1

15.74

-0.15 0.00

Emer Mkts Debt Lo Curr Fd A1

$ 13.44

-0.04 0.00

$ 33.54

0.00 0.00

10.16

-0.01

Inc.Pt.RMB Dt.USD PA

$ 10.19

-0.01

Emerging Markets Debt A1

Jenn. US Eq.Opp. USD PA

9.75

-0.01

Emerging Markets Eq.A1

$ 12.12

-0.03 0.00

Neubrg.Berman US Core PA

$ 14.60

-0.02 0.00

European Concentrated A1

15.89

-0.17 0.00

27.21

-0.19 0.00

Sands US Growth PA

14.16

0.00 0.00

European Core Eq A1

Sands US Growth PA

$ 17.11

-0.01 0.00

European Res.A1

28.69

-0.21 0.00

Will.Blair Gbl. Ldrs PA

14.12

-0.12 0.00

European Smaller Companies A1 42.40

-0.11 0.00

$ 13.10

0.01 0.00

Mirabaud Asset Management

Mir. Ac. All. Cons A EUR

Mir. Conv. Bds Eur A EUR
Mir. Conv. Bds Glb A USD

Greater China Opportunities Class AA $ 1.0148

0.0017

Healthcare Fund Class AA F

$ 1.8869

0.0026 0.00

India Equity Fund Class AA F

$ 1.4135

-0.0087 0.00

International Growth Fund Class A F $ 4.6674

0.0120 0.13

International Growth Fund Class AA F $ 1.0730

0.0027 0.00

Japanese Growth Fund Class A F $ 3.0717

-0.0399 0.66

Japanese Growth Fund Class AA F $ 0.7912

-0.0103 0.00

Latin America Equity Fund Class AA F $ 0.9923

-0.0071 1.24

Russia Equity Fund Class AA F

$ 0.4260

-0.0063 0.00

Taiwan Equity Fund Class AA F

$ 1.5422

-0.0012 0.22

Turkey Equity Fund Class AA F

$ 0.9784

-0.0134 0.00

US Bond Fund Class AA F

$ 1.2052

-0.0014 3.93

U.S. Bond Fund Class AA Inc F

$ 1.0015

-0.0012

U.S. Bond Fund Class AA (HKD) IncHK$ 9.9411

-0.0129

European Value A1
Global Bond A1

31.62
$ 10.79

-0.24 0.00
0.03 0.00

110.41
128.23
$ 112.14

-0.08 0.00

-0.66 0.00

$ 184.97

0.68 0.00

Mir. - Eq Global A USD

Mir. - Eq Pan Eur A Cap
Mir. -Eq Spain A
Mir. - Eq Swiss Sm/Mid A
Mir. - Eq UK
Mir. - Eq US A USD
Mir. - Glb High Yield Bds A

154.76
96.34
$ 105.42
177.99
$ 129.48
106.73
25.89
SFr 299.55

2.04

$ 171.98
$ 109.40

Mir. - Glb High Yield Bds AH CHFSFr 108.64

-0.29 0.00

104.21

Mir. - Eq France A EUR

U.S. Special Opportunities Fund Class AA (HKD)HK$ 9.5521

0.23 0.00

Mir. - Eq Asia ex Jap A

Mir. - Eq Glb Emrg Mkt A USD

0.32 0.00

Mir. - Dynam.Alloc. A EUR

Mir. - Eq Glb Emrg Mkt A GBP

U.S. Special Opportunities Fund Class AA F $ 0.9245

(LUX)

www.mirabaud.com, marketing@mirabaud.com
Regulated
Mirabaud Fund
Mir. Ac. All. Bal A EUR
112.39 -

Mir. - Eq Eurozone A EUR

MFS Meridian Funds SICAV

PrivilEdge
Inc.Pt.RMB Dt.CNH PA

Will.Blair Gbl. Ldrs PA

1294.19

(IRL)

0.01 0.00

112.68

Inc.Pt.RMB Dt.SH EUR PA

Morant Wright Funds (Ireland) PLC

3.55 0.00

-1.83 0.00
-0.20 0.00
-0.29

-1.19 0.00
0.05 0.00
-1.05 0.00
-0.47 0.00
-0.19 0.00
0.00 0.00
0.09 0.00
0.02
0.02

Mir. - Glb High Yield Bds AH EUR 109.05

0.02

Mir. - Glb High Yield Bds AH GBP 109.81

0.02

Mir. - Glb Eq High Income A CHF SFr 106.62

-1.31

Mir. - Glb Eq High Income A EUR 108.16

-1.25

-0.0014 6.94
-0.0155

Loomis Sayles Multisector Income R/D (GBP) 13.90 13.90 0.01 3.70

Other International Funds

Nevsky Fund Plc EUR Acc

1.18 0.00

Em.Mk.Eq.Fund Sterling

Vantage 3000 (EUR) MA

-0.02 0.00

-5.85 0.00

Em.Mk.Eq.Fund Euro

Growth (CHF) PA F

0.00 0.00

Global Allocation (GBP) PA F

$ 22.44

Morant Wright Sakura Fund Dollar Acc Hedged $ 12.33

$ 122.03

0.00 0.00

Conservative (EUR) PA F

MW Japan Fd Ltd B

Morant Wright Sakura Fund Yen Acc Unhedged 1255.00

MEMO - MEMV Series (Est)

Conservative (CHF) PA F

-0.03 0.00

3.25 0.00

Balanced (EUR) PA F

0.01 0.00

112.43

LO Selection
Balanced (CHF) PA F

$ 22.14

0.01 0.00

SFr 129.38

Wld Gold Expertise PAF

Regulated
MW Japan Fd Ltd A

Metage Capital

Sh.T- Money Mkt EUR PA

Tactical Alpha (EUR) PA

Loomis Sayles High Income R/D (USD) $ 10.67 10.67 -0.02 4.63
(CYM)

Manulife Global Fund

Natixis International Funds (Dublin) I plc (IRL)

Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000
Regulated
Loomis Sayles Global Opportunistic Bond R/D (GBP) 13.86 13.86 0.03 1.29

Nevsky Capital LLP

Sh.T- Money Mkt CHF PA

Sw.Fr.Bd(For) PA

$ 2452.83 2472.64 2.64 0.00

2085.33 2105.85 4.59 0.00

Diversified Absolute Return Stlg Cell AF2 1605.74

7.35

Morant Wright Sakura Fund Euro Acc Hedged 12.35

Pacific Basin Fd Cl A Initial Ser

Other International Funds

Global Gold & Resources Fund

(LUX)

FCA Recognised
Morant Wright Sakura Fund Sterling Acc Hedged 12.36

UK Equity Fd Cl A Series 01

Diversified Absolute Rtn Fd USD Cl AF2 $ 1590.01

101 New Cavendish Street,London W1W 6XH

Regulated
Montello Real Estate Opportunity Fund II 1065.91 -

Morant Wright Management Ltd

-0.04 0.00

(GSY)

Montello Real Estate Opportunity Fund

-1.62 0.00

31 Z.A. Bourmicht, L-8070 Bertrange, Luxembourg

www.manulife.com.hk
FCA Recognised
American Growth Fund Class A F $ 28.9482 - 0.1222 0.00

Sh.T- Money Mkt USD PA

Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
FCA Recognised
Harris Global Equity R/A (USD) $ 274.93 274.93 -0.60 0.00

Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520
FCA Recognised
Marlborough North American Fund Ltd 30.03 32.00 0.04 0.00

MMIP - US EQUITY CLASS A 01 June 07 Series $ 1336.07 1340.10 13.17 0.00

FCA Recognised
Em.Mk.Debt Fd.US Dollar

Natixis International Funds (Lux) I SICAV (LUX)

Marlborough International Management Limited (GSY)

Japanese Equity Fd Cl A Initial Ser 301243.00 302257.00 -256.00 0.00

MFS Investment Funds

0.00 0.00

Value A1

-0.14 0.00

-1.32 0.00

-0.33 0.00

Regulated
Multi-Manager Investment Programmes PCC Limited
European Equity Fd Cl A Initial Ser 2102.33 2110.76 -67.69 0.00

0.00 0.00

MMIP Investment Management Limited

$ 447.65

-0.06 0.00

$ 10.97

Other International Funds

Phaeton Intl (BVI) Ltd (Est)

$ 17.07

-0.07 0.00

Morgens Waterfall Vintiadis.co Inc

$ 14.05

11.08

Offer D+/- Yield

Limited Maturity A1

0.01 0.00

SFr 10.89

Bid

Latin American Equity Fd A1

Japan Small & Mid Caps PA

SFr 26.88

17.82

Golden Age (CHF) PA F

14.85

143.96 149.96 -0.05 2.64

-0.14 0.00

Generation Global (EUR) PA F

Global Energy (USD) PA F

High Yield Fund A1

3328.71 3467.41 -1.40 1.31

Fund

Morgan Stanley Investment Funds

European Equity Alpha A F

41.48

-0.57 0.00

Total Ret Bd EUR Ord Acc

158.27

0.10 0.00

European Property A F

30.06

-0.27 0.00

Total Ret Bd GBP Ord Acc

179.20

0.12 0.00

Eurozone Equity Alpha A F

10.62

-0.18 0.00

Total Ret Bd USD Inst Acc

$ 124.23

0.08 0.00

Global Bond A F

$ 40.18

0.09 0.00

Total Ret Bd GBP Ord Inc

116.57

0.07 3.70

Global Brands A F

$ 95.20

0.06 0.00

US Growth USD Ord Acc

$ 198.81

0.25 0.00

Global Convertible Bond A F

$ 42.37

0.02 0.00

US Growth EUR Ord Acc

190.81

0.22 0.00

Global Property A F

$ 28.16

-0.15 0.00

US Growth GBP Ord Acc

198.97

0.25 0.00

Indian Equity A F

$ 36.02

0.10 0.00

US Growth USD Inst Acc

$ 182.24

0.23 0.00

Latin American Equity A F

$ 54.26

-0.88 0.00

Wealthy Nat Bd EUR Inst Inc

111.39

0.00 3.95

Short Maturity Euro Bond A F

20.43

0.00 0.00

Wealthy Nat Bd GBP Inst Inc

114.92

0.00 3.79

US Dollar Liquidity A F

$ 13.03

0.00 0.00

Wealthy Nat Bd EUR Ord Inc

110.71

0.00 3.66

US Growth A F

$ 63.09

0.29 0.00

Wealthy Nat Bd GBP Ord Inc

115.46

0.00 3.55

US Growth AH F

43.60

0.20 0.00

Wealthy Nat Bd USD Ord Inc

$ 112.56

0.00 3.76

US Growth AX F

40.26

0.23 0.00

US Property A F

$ 67.74

-0.06 0.00

New Capital Alternative Strategies

All Weather Fd USD Cls
$ 119.79

-0.86 0.00

All Weather Fd EUR Cls

108.17

-0.86 0.00

All Weather Fd GBP Cls

116.21

-0.90 0.00

Tactical Opps USD Cls

$ 172.04

4.56 0.00

18 | FTfm

FINANCIAL TIMES Monday 8 December 2014

FTfm
Fund

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Tactical Opps EUR Cls

144.78

3.76 0.00

Odey Naver Fund Euro I Class

124.35

-0.03 0.00

Tactical Opps GBP Cls

162.69

4.33

Odey Naver Fund GBP I Class

124.93

0.00 0.00

Oryx International Growth Fund Ltd

Other International Funds
NAV (Fully Diluted)

Fund

Pictet-Japan Index-I JPY F

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

60.32 0.00

Global Real Return - Inst Acc

$ 18.21

0.02 0.00

Pictet-Japanese Equities Opp-I JPY F 9023.24

44.85 0.00

High Yield Bond - Inst Acc

$ 27.54

0.00 0.00

Putnam Investments (Ireland) Ltd

Regulated
Putnam New Flag Euro High Yield Plc - E 1041.27

$ 152.37

0.04 0.00

Pictet-Japanese Equity Selection-I JPY F 13755.33

115.97 0.00

Income Fund Inst Acc

$ 12.02

0.00 0.00

Odey Odyssey Fund GBP I

151.85

0.04 0.00

Pictet-LATAM Index I USD

$ 71.87

-1.42 0.00

Inflation Strategy Fund Inst Acc

9.73

-0.01 0.00

Odey Odyssey Fund GBP R

149.69

0.04 0.00

Pictet-LATAM Lc Ccy Dbt-I USD F $ 140.41

-0.88 0.00

Low Average Duration - Inst Acc $ 14.76

0.00 0.00

Odey Odyssey EUR I

136.30

0.02 0.00

Pictet-Pacific Ex Japan Index-I USD F $ 365.92

-0.57 0.00

PIMCO EqS Emerging Markets Fund Inst Acc $

8.58

0.03 0.00

5.14

-0.06 0.00

Odey Odyssey Fund EUR R

113.50

0.00 0.00

Pictet-Premium Brands-I EUR F

148.15

-1.18 0.00

PIMCO EqS Pathfinder.Eur.Fd Inst Acc F 14.31

-0.12 0.00

11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373
Other International Funds
Northwest $ class
$ 2173.92 - -17.49 0.00

Odey Odyssey Fund USD R

$ 118.76

0.04 0.00

Pictet-Quality Global Equities I USD $ 136.60

-0.30 0.00

PIMCO EqS Pathfinder.Fd Inst Acc F $ 13.97

-0.03 0.00

Odey Orion Fund Euro I Class

122.99

-0.70 0.00

Pictet-Russia Index I USD

$ 53.93

-2.23 0.00

Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 13.12

-0.01 0.00

Northwest Warrant $ class

Odey Orion Fund USD I Class

$ 123.09

-0.68 0.00

Pictet-Russian Equities-I USD F

$ 45.29

-1.32 0.00

StocksPLUS{TM} - Inst Acc

$ 23.13

-0.02 0.00

Odey Swan Fund Euro I Class

102.64

0.79 0.00

Pictet-Security-I USD F

$ 189.31

-0.44 0.00

Total Return Bond - Inst Acc

$ 26.93

0.01 0.00

Odey Swan Fund Euro R Class

101.33

0.97 0.00

Pictet-Select-Callisto I EUR

104.21

1.00 0.00

UK Corporate Bond - Inst Acc

16.77

0.01 0.00

Odey Swan Fund GBP I Class

102.74

0.81 0.00

Pictet-Small Cap Europe-I EUR F 897.86

-4.64 0.00

UK Long Term Corp. Bnd Inst-Inst Acc 18.49

0.02

Odey Swan Fund GBP R Class

106.83

0.94 0.00

Pictet-ST.MoneyMkt-I

140.55

0.00 0.00

UK Real Return - Inst Acc

22.57

0.13 0.00

Odey Swan Fund USD I Class

$ 102.44

0.81 0.00

Pictet-ST.MoneyMkt JPY I USD

101579.00

-2.43 0.00

UK Sterling Long Average Duration - Inst Acc 20.74

0.05 0.00

Northwest Investment Management (HK) Ltd

$ 1680.51

-74.32 0.00

Oasis Crescent Management Company Ltd

Other International Funds
Oasis Crescent Equity Fund

9.58

-0.03 0.00

Oasis Global Mgmt Co (Ireland) Ltd

Regulated
Oasis Global Investment (Ireland) Plc
Oasis Global Equity
$ 27.89

(IRL)

Permal Investment Mgmt Svcs Ltd

www.permal.com
Other International Funds
Offshore Fund Class A US $ Shares
Investment Holdings N.V.
$ 5421.77

-41.89

Macro Holdings Ltd

$ 4093.31

-39.55

Fixed Income Holdings N.V.

$ 405.56

-8.78

Bid

Odey Odyssey USD I

Fund

15336.36

Strategic Bond Ret Inc

1.07

(GSY)
www.recmglobal.com Enquiries: info@recmglobal.com
Regulated
RECM Global Fund Limited - Class A $ 17.85 - -0.13 0.00
RECM Global Equity Fund Limited - Class A $

9.15

-0.08

141.82

-0.04 0.00

Renasset Select Funds Plc

$ 102.03

0.80 0.00

Pictet-ST.MoneyMkt-ICHF

SFr 125.22

0.00 0.00

UK Sterling Low Average Duration - Inst Acc 14.00

0.00 0.00

$ 101.62

0.99 0.00

Pictet-ST.MoneyMkt-IUSD

$ 134.78

0.01 0.00

Unconstrained Bond - Inst Acc

$ 12.25

-0.01 0.00

European Opportunities Fund B

104.90

-0.02 0.00

Odey European Absolute Return Fund EUR I 95.91

0.46

Pictet-Timber-I USD F

$ 156.47

-0.24 0.00

US Fundam.Index StocksPLUS Inst Inc $ 12.79

-0.04 0.00

Renaissance Eastern European Allocation Fund 411.10

-0.02 0.00

Renaissance Eastern European Fund A 409.47

-2.62 0.00

-0.56 0.00

-0.66 0.00

-0.85 0.00

0.48

Pictet Total Ret-Agora I EUR

101.68

0.06

Pictet Total Ret-Corto Europe I EUR 124.23

0.61 0.00

Oasis Crescent Global Investment Fund (Ireland) plc

Oasis Crescent Global Equity Fund $ 28.38 - -0.02 0.00

Odey European Absolute Return Fund EUR R 91.32

0.44

Pictet Total Ret-Divers Alpha I EUR 100.89

0.20

Renaissance Ottoman Fund

Odey European Absolute Return Fund GBP R 95.08

0.47

Pictet Total Ret-Kosmos I EUR

Odey European Absolute Return Fund USD R $ 96.04

0.47

Odey European Absolute Return Fund EUR S 96.06

0.46

$ 12.19

0.00 0.00

OasisCresGl Med Eq Bal A ($) Dist $ 12.33

-0.02 0.12

Oasis Crescent Gbl Property Eqty $

-0.03 1.74

9.72

Odey European Absolute Return Fund GBP S 96.62

0.48

Odey European Absolute Return Fund USD S $ 96.39

0.48

Odey Wealth Management (CI) Ltd

www.odey.com/prices
FCA Recognised
Odey Opportunity EUR I

212.57

(IRL)

-0.98 0.00

Pictet Funds (Europe) SA

Omnia Fund Ltd

(CYM)

Other International Funds

Estimated NAV

0.12

Pictet-Absl Rtn Glo Div-I EUR F

124.22

0.12 0.00

Pictet-Agriculture-I EUR F

177.51

-2.65 0.00

-34.95 0.00

Pictet-Asian Equities Ex Japan-I USD F $ 220.87

-0.50 0.00

Pictet-Asian Local Currency Debt-I USD F $ 155.96

-0.11 0.00

Pictet-Biotech-I USD F

-3.75 0.00

Pictet-CHF Bonds I CHF

$ 810.71

(LUX)

15, Avenue J.F. Kennedy L-1855 Luxembourg

Tel: 0041 58 323 3000
FCA Recognised
Pictet-Absl Rtn Fix Inc-HI EUR
107.57 -

Pictet-Brazil Index I USD

Odey Asset Management LLP

$ 767.28
$ 61.93

SFr 495.12

0.04 0.00

Pictet-China Index I USD

$ 112.70

2.76 0.00

388.29

0.00 0.00

Pictet-Clean Energy-I USD F

$ 89.72

-0.22 0.00

OEI Mac Inc B

217.61

6.35 0.00

Pictet-Digital Communication-I USD F $ 242.08

-0.14 0.00

OEI MAC Inc USD

$ 2117.09

63.65 0.00

Pictet-Eastern Europe-I EUR F

300.58

-6.55 0.00

Odey European Inc EUR

859.98

15.73 0.00

Pictet-Em Lcl Ccy Dbt-I USD F

$ 182.72

-0.24 0.00

Pictet-Emerging Markets-I USD F $ 556.66

-3.93 0.00

Pictet-Emerging Markets Index-I USD F $ 251.43

0.23 0.00

329.37

6.09

Odey European Inc B GBP

187.03

3.45 0.00

Odey European Inc USD

$ 401.74

7.39 0.00

Giano Capital EUR Inc

4739.39

143.69 0.00

Odey Asset Management LLP

(IRL)

FCA Recognised
Odey Pan European EUR R

316.92

-1.66 0.00

Odey Pan European GBP R

201.57

0.98 0.00

Optima Fund Management

Other International Funds
JENOP Global Healthcare Fund Ltd $ 14.18

0.07 0.00

Optima Fd NAV

$ 90.46

0.51 0.00

Optima Discretionary Macro Fund Limited $ 85.56

0.44 0.00

The Dorset Energy Fd Ltd NAV

1.45 0.00

Platinum Fd Ltd

$ 53.37
$ 89.41

0.72 0.00

Odey Allegra European EUR O

251.13

-1.73 0.00

Platinum Fd Ltd EUR

17.51

0.14 0.00

Odey Allegra European EUR A

151.05

-1.04 0.00

Platinum Japan Fd Ltd

$ 49.00

-0.19 0.00

Odey Allegra European GBP O

285.23

0.91 0.00

Optima Partners Global Fd

$ 14.39

0.07 0.00

Odey Allegra European USD O

$ 240.16

0.59 0.00

Optima Partners Focus Fund A

$ 16.61

0.07 0.00

Odey Allegra European EUR I

239.68

Pictet-Emerging Corporate Bonds I USD $ 105.66

-0.06 0.00

Pictet-Emerging Markets High Dividend I USD $ 112.26

-0.88 0.00

Pictet-Emerging Markets Sust Eq I USD $ 101.13

-0.16 0.00

Pictet-Environmental Megatrend Sel I EUR 141.19

-1.88 0.00

Pictet-EUR Bonds-I F

541.60

-0.38 0.00

Pictet-EUR Corporate Bonds Ex Fin i EUR 143.84

-0.06 0.00

Pictet-EUR Corporate Bonds-I F

199.04

-0.05 0.00

Pictet-EUR Government Bonds I EUR 154.34

-0.22

Pictet-EUR High Yield-I F

241.22

1.31 0.00

Pictet-EUR Inflation Linked Bonds I EUR 124.19

-0.03 0.00

Pictet-EUR Short Mid-Term Bonds-I F 136.39

-1.65 0.00

-0.06 0.00

Odey Allegra European EUR A I

153.65

-1.06 0.00

Pictet-EUR Short Term HY I EUR

116.56

-0.41 0.00

Odey Allegra European GBP D

171.77

0.55 0.00

Pictet-EUR Sov.Sht.Mon.Mkt EUR I 103.23

0.00 0.00

Odey Allegra International Euro Class 160.75

-1.37 0.00

Orbis Investment Management Ltd

Pictet-Euroland Index IS EUR

-1.96 0.00

Regulated
Orbis Global Equity

Odey Allegra International GBP Class 198.95

0.30 0.00

Odey Allegra International USD

0.12 0.00

$ 157.28

Orbis Optimal (US$)

$ 178.36
$ 75.24

Odey Allegra International Euro I Class 147.15

-1.26 0.00

Odey Allegra International GBP D inc 180.24

0.27 0.00

Orbis Optimal (Yen)

1080.00

Odey Allegra International GBP A D 133.00

0.20 0.00

Orbis Japan Equity (US$)

$ 40.84

Odey Allegra Developed Markets Fund USD I $ 126.97

0.22 0.00

Odey Allegra Developed Markets Fund GBP I 125.52

0.30 0.00

Odey Atlas Fund GBP I

0.27

Odey Atlas Fund GBP I S

Odey Atlas Fund GBP R S

104.35

1.25

0.00 0.00

1.07

0.00 0.00

Odey Giano European Fund EUR R 122.69

0.42 0.00

Odey Giano European Fund GBP R 123.10

0.45 0.00

Odey Giano European Fund USD R $ 123.93

0.45 0.00

Orbis Optimal (Euro)

25.52

(BMU)
-

-2.82 0.00

Pictet-Europe Index-I EUR F

158.01

-2.11 0.00

-0.73 0.00

Pictet-European Equity Selection-I EUR F 558.22

-6.75 0.00

-0.22 0.00

Pictet-European Sust Eq-I EUR F

219.03

-1.77 0.00

-8.00 0.00

Pictet-Generics-I USD F

$ 278.40

0.23 0.00

0.77 0.00

Pictet-Global Bds Fundamental I USD $ 127.02

0.27 0.00

Pictet-Global Bonds-I EUR

149.32

-0.96 0.00

Pictet-Global Emerging Currencies-I USD F $ 102.07

-0.19 0.00

Pictet-Global Emerging Debt-I USD F $ 353.58

-0.84 0.00

*Orbis Prices as of December 4th

Orbis Sicav

(LUX)

Regulated
Orbis Japan Equity (Yen)

3995.00

78.00 0.00

Orbis Japan Equity (Euro)

26.44

0.51 0.00

Orbis Asia ex-Japan - Investor Shares $ 22.61

-0.62 0.00

Orbis Global Equity - Investor Shares 142.29

121.16

-1.46 0.00

108.76

0.02 0.00

Pictet Total Ret-Mandarin I USD $ 116.14

-0.03 0.00

Pictet-US Equity Selection-I USD $ 192.73

-0.53 0.00

Pictet-US High Yield-I USD F

$ 147.92

0.04 0.00

Pictet-USA Index-I USD F

$ 180.95

-0.20 0.00

Pictet-USD Government Bonds-I F $ 625.43

1.12 0.00

Pictet-USD Short Mid-Term Bonds-I F $ 128.81

0.03 0.00

Pictet-USD Sov.ST.Mon.Mkt-I

$ 102.48

0.00 0.00

Pictet-Water-I EUR F

246.79

-3.70 0.00

Pictet-Global Megatrend Selection-I USD F $ 226.90

-0.53 0.00

Pictet-Greater China-I USD F

$ 455.34

0.06 0.00

Pictet-High Dividend Sel I EUR F 146.93

-2.21 0.00

Pictet-India Index I USD

$ 109.43

-0.11 0.00

Pictet-Indian Equities-I USD F

$ 463.31

0.03 0.00

Pimco Fds: Global Investors Series Plc

Other International Funds

Platinum All Star Fund - A

$ 112.60

Platinum Global Dividend Fund - A (Est) $ 64.48

$ 14.49

Robeco Asset Management

Platinum Arbitrage Opportunities Fund Ltd Class A (Est) $ 93.87

Platinum Essential Resources

7.33

-0.08

(LUX)
Coolsingel 120, 3011 AG Rotterdam, The Netherlands.
www.robeco.com/contact
FCA Recognised
Asia-Pacific Equities (EUR)
120.68 - -0.77 0.00

Platinum Navigator Fund Ltd Class A $ 97.41

Chinese Equities (EUR)

70.15

0.68 0.00

Em Stars Equities (EUR)

173.55

-1.66 0.00

Emerging Markets Equities (EUR) 145.33

-1.57 0.00

Flex-o-Rente (EUR)

107.20

0.04 0.00

Glob.Consumer Trends Equities (EUR) 132.22

-0.81 0.00
0.03 0.00

Platinum Global Dividend UCITS Fund $ 77.08 77.08 -0.59 6.26

(IRL)

PIMCO Europe Ltd,11 Baker Street,London W1U 3AH

http://gisnav.pimco-funds.com/
Dealing: +44 20 3640 1000
PIMCO Funds: +44 (0)20 3640 1407
FCA Recognised
Asia Local Bond Fund - Inst Acc $ 10.00 - -0.02 0.00
Capital Securities Inst Acc

124.16

Platinum Capital Management Ltd

-1.81 0.00

Regulated
OEI MAC Inc A

Odey European Inc A GBP

(IRL)

Odey Swan Fund USD R Class

$ 157.82

0.48

OasisCresGl LowBal D ($) Dist

Odey Swan Fund USD IR Class

Jubilee Absolute Return Fund

0.01 2.58

1.09 0.00 3.97

RECM Global Management Limited

Odey European Absolute Return Fund USD I $ 96.34

0.37 5.19

(UK)
PO Box 9948, Chelmsford, CM99 2AG
Order Desk: 0845 300 2101, Enquiries: 0207 399 0399
Authorised Inv Funds
Strategic Bond Ret Acc
1.18 1.20 0.00 3.68

-0.06 0.17

$ 11.12

Rathbone Unit Trust Mgmt (1200)F

Renaissance Eastern European Fund B 87.92

OasisCresGl Income Class A

(IRL)

Regulated
European Opportunities Fund A

Odey European Absolute Return Fund GBP I 95.26

-

Offer D+/- Yield

0.00 0.00

High Yield Bonds (EUR)

123.57

8.25

0.00 0.00

Lux -O- Rente (EUR)

134.67

0.02 0.00

Credit Absolute Return Fund Inst Acc $ 11.49

-0.01 0.00

New World Financials (EUR)

49.81

-0.52 0.00

Diversified Income - Inst Acc

-0.02 0.00

US Premium Equities (EUR)

182.26

-0.51 0.00

US Premium Equities (USD)

$ 203.95

-0.60 0.00

CommoditiesPLUS111sp Strategy - Inst Acc $

$ 19.42

Diversified Income Durat Hdg Fund Inst Acc $ 11.60

-0.03 0.00

EM Fundam.Ind StocksPLUS Fund Inst Acc $ 11.13

0.00 0.00

Emerging Asia Bond Fund Inst Acc $ 10.28

0.00 0.00

Emerging Multi-Asset Fund Inst Acc $

8.99

0.01 0.00

$ 13.16

-0.03 0.00

Emerging Local Bond - Inst Acc

Emerging Markets Bond - Inst Acc $ 39.36

-0.03 0.00

Emerging Markets Curr.Fd- Inst Acc $ 12.89

-0.02 0.00

Euro Bond - Inst Acc

22.34

-0.05 0.00

Euro Credit - Inst Acc

14.54

-0.02 0.00

Euro Income Bond - Inst Acc F

12.95

-0.02 0.00

Euro Long Average Duration - Inst Acc 20.84

-0.06 0.00

Euro Low Duration Fund Inst Acc 11.28

-0.02 0.00

Euro Real Return - Inst Acc

13.17

0.01 0.00

Euro Short-Term Inst Acc

12.20

-0.01 0.00

Euro Short-Term Inv Acc

11.84

-0.01 0.00

Euro Ultra Long Duration - Inst Acc 27.58

-0.13 0.00

$ 12.89

Global Advantage Real Return Fund Inst Acc $

0.01 0.00

9.79

0.00 0.00

Global Bond - Inst Acc

$ 27.37

0.00 0.00

Global Bond Ex-US - Inst Acc

$ 19.12

-0.03 0.00

Global Fundam.Index StocksPLUSInst Acc $ 12.00

-0.06 0.00

Global High Yield Bond - Inst Acc $ 19.83

0.00 0.00

Global Investment Grade Credit - Inst Income $ 12.47

-0.01 3.17

Global Investment Grade Credit Fund Inst Acc 10.63

-0.08 0.00

Global Investment Grade Credit Fund Inst Acc $ $ 16.45

-0.01 0.00

Global Multi-Asset - Inst Acc

-0.01 0.00

$ 14.67

Regulated
Biotechnology I USD
UK Absolute Equity I GBP

(IRL)
$ 15.76 15.76 -0.06 0.00
10.52 10.52 0.08

Polar Capital LLP

(CYM)

Regulated
ALVA Convertible A USD

$ 126.31

European Conviction A EUR

162.52

0.65 0.00

European Forager A EUR

180.60

-4.21 0.00

-0.18 0.00

-0.04 0.00

Emerging Markets Corp.Bd Fund Inst Acc F $ 13.52

Global Advantage - Inst Acc

Polar Capital Funds Plc

S W Mitchell Capital LLP

Polunin Capital Partners Ltd

Other International Funds
Developing Countries 'A'
Emerging Markets Active

$ 38.29
$ 41.46

0.63 0.00
0.73

Luxcellence Em Mkts Tech

$ 922.91

Polunin Developing Countries

$ 857.23 864.52 4.14

Polunin Discovery - Frontier Markets $ 1539.74

Polunin Small Cap

-9.54 0.00

12.58

(GSY)

441.66 446.74 3.26 0.97

Prusik Investment Management LLP

-

0.08 4.19

Prusik Asia A

$ 202.81

-0.15 0.00

Prusik Asian Smaller Cos A

$ 161.25

-1.10 0.00

(JER)

Regulated
PCG B

164.76

PCG C

162.77

-10.51

-1.35

The Charlemagne Fund EUR

279.88

-12.15

Regulated
SWMC European Fund B EUR

14275.71

-141.86 0.00

SWMC UK Fund B

S W Mitchell Capital LLP

(IRL)

9926.26

163.01

SWMC Small Cap European Fund B EUR 12566.86

-4.52 0.00

SWMC Emerging European Fund B EUR 8735.79

-106.64 0.00

(IRL)

Enquiries - 0207 493 1331

Regulated
Prusik Asian Equity Income B Dist $ 157.54

Purisima Investment Fds (CI) Ltd

S W Mitchell Small Cap European Fund Class A EUR 215.28

$ 1382.80 1400.09 -19.39 0.00

Private Fund Mgrs (Guernsey) Ltd

Regulated
Monument Growth 02/12/2014

(CYM)

Regulated
S W Mitchell European Fund Class A EUR 284.28

RobecoSAM

(LUX)
Tel. +41 44 653 10 10 http://www.robecosam.com/
Regulated
RobecoSAM Sm.Energy/A
11.62 0.01 1.25
RobecoSAM Sm.Materials/A

123.98

0.39 2.00

-0.11 0.00

RobecoSAM S.Climate/A

80.32

0.28 1.69

-0.11 0.00

RobecoSAM S.Global Eq/B

167.57

-1.00 0.00

FTfm | 19

FINANCIAL TIMES Monday 8 December 2014

FTfm
Fund

Bid

Offer D+/- Yield

RobecoSAM S.HealthyLiv/B

162.60

-1.79 0.00

RobecoSAM S.Water/A

162.48

0.65 2.31

Fund

Stenham Gold USD

Other International Funds

Indirect Real Estate SIRE

121.92 126.87 0.85 3.44

Offer D+/- Yield

-16.00 0.00

Fund

Bid

Gilt

1535.43

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Stenham Growth USD

$ 210.16

2.34

Global Eq (Ex Japan) Index Fund

1.37

0.00 0.00

Unicapital Investments

$ 164.70

5.65 0.00

Global Eq (ex Japan) Class HJ4

1.42

-0.01 0.00

Regulated
Investments III

Stenham Helix USD

$ 101.84

-1.65 0.00

Global Eq (ex Japan) Class JP5

1.57

0.00 0.00

Investments IV - European Private Eq. 307.74 323.13 0.00

$ 111.45

0.27

Global Eq Ex Japan Index Fund (Hedge)

1.44

Fund

Bid

Offer D+/- Yield

-2.20 0.00

Stenham Healthcare USD

Stenham Managed Fund USD

Schroder Property Managers (Jersey) Ltd

Bid

$ 154.68

0.00 0.00

Stenham Multi Strategy USD

$ 116.04

-1.59

Gbl Govt Bond (Ex Japan) Index

1.38

0.00 0.00

Stenham Quadrant USD A

$ 379.59

-5.42

Gbl Govt Bond (ex Japan) Class JP4

1.35

0.00 0.00

Stenham Trading Inc USD

$ 110.18

-1.58

Japan Equity Index Fund

0.98

0.00 0.00

Stenham Universal USD

$ 432.21

-5.92

Japan Equity Class JP3

1.19

0.00 0.00

Stenham Universal II USD

$ 160.99

-2.28 0.00

(LUX)
24.78

-51.77 0.00

Waverton Investment Funds Plc (1600)F

(IRL)

waverton.investments@citi.com
FCA Recognised
Asia Pacific A USD
$ 19.56

-0.03 1.06

European Fund A Eur

16.79

-0.02 0.35

Global Bond Fund Cls A

-0.01 5.00

Investments IV - Global Private Eq. 429.57 451.05 0.00 0.00

9.24

Global Equity Fund A GBP

14.61

-0.03 0.25

UK Fund A GBP

12.89

0.06 1.92

Waverton Equity Fund A GBP

14.72

0.03 0.00

0.00 5.15

Waverton Sterling Bond Fund A GBP

9.92

The National Investor (TNI)

SIA (SIA Funds AG)

(LUX)

Regulated
LTIF Alpha

161.44

-1.90 0.00

LTIF Classic

325.14

-3.83 0.00

LTIF Natural Resources

86.07

-1.32 0.00

SIA (SIA Funds AG) (CH)

Other International Fds
LTIF Stability Growth

SFr 217.70

-2.60 0.73

LTIF Stability Inc Plus

SFr 202.10

-2.50 0.76

Stratton Street Capital (CI) Limited

Regulated
Japanese Synthetic Warrant

996.76

2.83

Japan Synthetic Warrant Fund USD Class $ 10.95

-0.41 0.00

2.77

Renminbi Bond Fund AUD Cls A A$ 120.37

0.05 3.66

Renminbi Bond Fund AUD Cls B A$ 122.08

0.05 3.43

SKAGEN Kon-Tiki
SKAGEN m2
SKAGEN Vekst
SKAGEN Tellus

77.07
15.83
207.31
14.77

1.77 0.00
0.57 0.00
0.06

1.10 0.00
0.07 10.22

0.01 3.05

Renminbi Bond Fund CNH Cls A CNH 122.06

0.17 3.38

121.05

0.01 3.04

122.19

0.02 2.95

0.04 3.28

Renminbi Bond Fund USD Cls B

0.02 3.23

Renminbi Bond Fund YEN Cls B

12998.28

1.86 0.00

Renminbi Bond Fund USD Class

$ 167.69

0.03 3.46

Renminbi Bond Fund GBP Class

162.96

0.04 3.18

Renminbi Bond Fund SGD Class S$ 160.46

0.05 3.51

Renminbi Bond Fund YEN Class

19236.00

-34.00 0.00

Renminbi Bond Fund EUR Class

111.39

0.01 3.28

Poland Geared Growth

0.53

-0.03 0.00

Daiwa Gaika MMF

AU$ Portfolio
US$ Portfolio

6.96

-0.04 0.00

$ 1074.82

-81.74 0.00

TNI Funds Plc (Ireland)

MENA UCITS Fund *

$ 1395.61

-42.33 0.00

(IRL)

www.valuepartners.com.hk / vpl@vp.com.hk
Regulated
Value Partners Classic Equity USD Hedged $ 13.34 -

0.00 0.00

A$

0.01

0.00

0.01

0.00

E.I. Sturdza Strategic Management Limited (GSY)

UBP - Union Bancaire Prive

Veritas Asset Management LLP

(IRL)
HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
Veritas Funds Plc
www.veritas-asset.com
+353 1 635 6799
FCA Recognised
Institutional
0.72 0.67
Veritas Asian Fund A USD H
$ 306.14 -

(LUX)

71.02 0.00

-0.60 0.00

Winton Futures JPY Cls E

18728.98

798.28 0.00

Veritas China Fund A GBP

134.85

-0.61 0.00

-0.13 0.00

Veritas Global Equity Income Fund D USD $ 132.38

-0.46 4.47

1.79 0.00

Veritas Global Equity Income Fund D EUR 207.74

-1.46 4.20

UBAM-Europe Equity Dividend+AC Acc 113.09

0.41 0.00

Veritas Global Equity Income Fund D GBP 163.98

-0.53 4.47

UBAM-Global High Yield Solution AC Acc $ 142.96

0.34 0.00

Veritas Global Focus Fund D USD $ 25.54

-0.05 2.78

UBAM-Neuberger Berman US Eq Val AC Acc $ 1036.96

7.11 0.00

Veritas Global Focus Fund D EUR 20.83

-0.11 2.88

UBAM-SNAM Japan Eq Val AC Acc 1255.00

6.00 0.00

Veritas Global Focus Fund D GBP 27.65

-0.04 2.48

UBAM-Swiss Equity AC Acc

SFr 260.45

1.11 0.00

Veritas Global Focus Fund A GBP 26.69

-0.04 2.25

UBAM-Unconstrained Bond APC Acc 102.10

0.02 0.00

Veritas Global Focus Fund A EUR 12.14

-0.06 2.28

UBAM FCP-EM Inv Grd Corporate Bd Acc $ 120.26

0.02 0.00

Veritas Global Focus Fund A USD $ 24.64

-0.05 2.34

Veritas Global Focus Fund C GBP 28.79

UBAM Convertibles Europe AC Acc 1695.65

-8.32 0.00

Veritas Global Focus Fund C EUR 21.78

-0.12 0.00

UBAM Convertibles Global AC Acc 1233.06

-0.86 0.00

Veritas Global Focus Fund C USD $ 26.65

-0.05 0.00

Veritas Global Equity Income Fund A GBP 157.56

-0.52 4.48

Veritas Global Equity Income Fund A EUR 202.34

-1.43 4.22

0.00

100234.00

2421.00 0.00

Veritas Global Equity Income Fund A USD $ 127.71

-0.45 4.48

0.00

Strat Evarich Japan Fd Ltd JPY

94517.00

249.00 0.00

Veritas Global Equity Income Fund C GBP 181.11

-0.59

Daiwa Bond Series

Monthly Dividend AUD Bd

Strat Evarich Japan Fd Ltd USD

$ 943.74

2.50 0.00

A$ 10.37

0.01 0.00

Veritas Global Equity Income Fund C EUR 232.35

-1.63

Monthly Dividend EUR Bd

10.74

-0.01 0.00

Veritas Global Equity Income Fund C USD $ 145.85

-0.51

Veritas Global Real Return Fund A USD $ 19.97

-0.07 2.09

Veritas Global Real Return Fund A GBP 11.10

-0.03 2.08

7.89

-0.02 0.00

1.32 0.00

Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) 1274.22

1.65 0.00

Nippon Growth (UCITS) Fund JPY Class A shares 99578.00

144.00 0.00

Nippon Growth (UCITS) Fund JPY Class B Acc shares 83527.00

121.00 0.00

(JER)
PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
FCA Recognised
Standard Life Offshore Strategy Fund Limited
Bridge Fund
1.5928 - 0.0000 2.27

Nippon Growth (UCITS) Fund JPY Class C Dis shares 81136.00

117.00 0.00

Strategic China Panda Fund USD $ 2303.60

-6.61 0.00

Diversified Assets Fund

1.1773

0.0007 3.05

Strategic China Panda Fund Hedged EURO 2240.51

-5.99 0.00

Global Equity Fund

1.8014

-0.0012 1.44

Strategic China Panda Fund Hedged Sterling 2270.07

-6.46 0.00

Daiwa Equity Fund Series

New Major Economies

9.28

-0.08 0.00

Standard Life Wealth

Global Balanced Fund - Income Units 1.3502

-0.0018 1.62

Nippon Growth (UCITS Fund Class D Institutional JPY) 53811.00

Strategic Euro Bond Accumulating Class CHFSFr 1021.94

0.47 0.00

-0.0021 1.61

Strategic Euro Bond Institutional Class EUR 1032.19

0.52 0.00

Global Fixed Interest Fund

0.0003 3.53

Strategic Euro Bond Fund Accumulating Class Shares 1160.86

0.57 0.00

Sterling Fixed Interest Fund

UK Equity Fund

0.8640
1.9137

-0.0009 3.82
0.0059 2.78

Strategic Euro Bond Fund Distributing Class Shares 1061.49

0.52 0.00

Strategic Global Bond RMB Acc CNY 1090.14

1.36 0.00

Strategic Global Bond USD Acc

1.32 0.00

$ 1057.47

Strategic US Momentum and Value Fund $ 805.12

-0.75 0.00

Strategic US Momentum and Value EUR Hedged Class EUR 562.13

-0.63

Strategic US Momentum and Value CHF Hedged Class CHFSFr 560.33

-0.67

Stenham Asset Management Inc

www.stenhamassetmanagement.com
Other International Funds
Stenham Asia USD
$ 131.57

The Hartford International Funds

-

1.10

Stenham Credit Opportunities A Class USD $ 105.85

-3.89 0.00

Stenham Emerging Markets USD B1 $ 109.77

0.65 0.00

Regulated
Gbl Govt Bond (Ex Japan) Index (GBP) 1615.58
UK Corporate Bond

1541.26

(IRL)
-

$ 313.41

20.23 0.00

Veritas Global Real Return Fund A EUR 11.73

78.00 0.00

Global Balanced Fund - Accumulations Units 1.5379

1.0541

Tosca Opportunity B USD

7.97 0.00
-1.12 0.00

TreeTop Asset Management S.A.

(LUX)

Regulated
TreeTop Convertible Sicav
International A

296.17

-1.90 0.00

International B

$ 381.12

-2.31 0.00

International C

132.14

-0.77 0.00

International D

281.52

-1.86 0.00

Pacific A

294.28

-0.91 0.00

Pacific B

$ 371.08

-1.16 0.00

TreeTop Global Sicav

Global Opp.A

142.17

-0.80 0.00

Global Opp.B

$ 144.76

-0.53 0.00

Global Opp.C

179.68

-0.45 0.00

Sequoia Equity A

139.39

-0.92 0.00

Sequoia Equity B

$ 149.17

-0.71 0.00

Sequoia Equity C

164.08

-0.66 3.67

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Yuki International Limited

(IRL)

Tel +44-20-7269-0207 www.yukifunds.com

Regulated
Yuki Mizuho Umbrella Fund
Yuki Mizuho Japan Dynamic Growth 6945.00

57.00 0.00

Yuki Mizuho Japan Large Cap

7369.00

45.00 0.00

Yuki Japan Low Price

25826.00

246.00 0.00

Yuki Japan Value Select

12386.00

138.00 0.00

YMR Umbrella Fund

YMR N Growth

16609.00

159.00 0.00

Yuki Asia Umbrella Fund

Yuki Japan Rebounding Growth Fund 22339.00

281.00 0.00

-0.04 0.00

Mthly Div US Preferred Secs

87.71 0.00

1.37 0.00

$ 132.97

$ 1609.84

Veritas China Fund A USD

387.50

216.76

4.81 0.00

Winton Evolution USD Cls F

69.05 0.00

UBAM-EM High Yld Short Dur Corp Bd AC Acc $ 104.89

Tosca Mid Cap GBP

12.48 0.00

0.01

Regulated
Nippon Growth (UCITS Fund Euro Hedged Class EUR) 1088.44

112.68

0.01

0.02 0.00

292.13

Winton Futures GBP Cls F

1281.79

C$

Winton Futures GBP Cls D

1263.26

NZ$

C$ 10.20

11.26 0.00

Winton Evolution GBP Cls G

UBAM-Europe Equity AC Acc

2.26 0.00

Winton Evolution EUR Cls H

-0.61 0.00

267.71

-0.47 0.47

$ 264.93

Winton Futures EUR Cls C

131.16

(CYM)

40.07 0.00

287.30

Veritas China Fund A EUR

Toscafund

Veritas Asian Fund A EUR H

0.01 0.00

-2.06 0.00

$ 955.41

1.01 0.50

Other International Funds

Winton Futures USD Cls B

New Zealand Dllr Pfolio

Monthly Dividend CAD Bd

-0.17 0.00

362.77

Canadian Dllr Pfolio

(IRL)

Veritas Asian Fund A GBP H

Regulated
Nippon Growth Fund Limited

E.I. Sturdza Funds PLC

119.64

(IRL)

0.05 0.00

Rue du Rhne, 96-98 Geneve Switzerland

FCA Recognised
UBAM-Dynamic Euro Bd A Acc 255.68

Regulated
Tosca

Regulated
European Multi-Sector

Winton Capital Management

UBAM Convertibles Euro 10-40 AC Acc 1777.21

SMT Fund Services (Ireland) Limited

Regulated
Monthly Dividend High Yield

AED 10.90

TNI Funds Ltd (BMU)

MENA Hedge Fund

Value Partners Hong Kong Limited

0.18 3.15

Renminbi Bond Fund SGD Cls B S$ 121.07

$ 121.56

WA Fixed Income Fund Plc

0.02 3.28

Renminbi Bond Fund CHF Cls B SFr 120.31

Renminbi Bond Fund GBP Cls B

PO Box 160, 4001 Stavanger, Norway
Tel (47) 51 21 38 58 www.skagenfunds.com
FCA Recognised
SKAGEN Global
141.61

Japan Synthetic Warrant US Dollar Hedged Participating Shares $ 97.44

Renminbi Bond Fund CHF Cls A SFr 120.61

www.tni.ae
Other International Funds
UAE Blue Chip Fund *

-21.06 0.00

Renminbi Bond Fund Euro Cls B

(NOR)

Japan Synthetic Warrant GBP Hedged Participating Shares 97.95

Renminbi Bond Fund CNH Cls B CNH 121.74

SKAGEN Funds

(GSY)

Give your
funds
maximum
exposure

-0.02 0.17

Retail
Veritas Asian Fund B USD

$ 215.36

Veritas Asian Fund B GBP

267.55

0.75 0.04

Veritas Asian Fund B EUR

211.71

-0.35 0.00

Veritas China Fund B GBP

130.70

-0.60 0.00

Veritas China Fund B EUR

137.53

-0.63 0.00

Veritas Global Focus Fund B USD $ 17.82

-0.03

Veritas Global Focus Fund B GBP 20.42

-0.04 1.78

Veritas Global Focus Fund B EUR 14.47

-0.08 1.82

Veritas Global Equity Income Fund B GBP 145.68

-0.48 4.52

Veritas Global Equity Income Fund B EUR 186.62

-1.31 4.26

Veritas Global Equity Income Fund B USD $ 127.25

-0.45 4.52

Veritas Global Real Return Fund B USD $ 19.40

-0.06 1.64

Veritas Global Real Return Fund B GBP 10.91

-0.03 1.65

Veritas Global Real Return Fund B EUR 12.63

-0.04 1.46

www.veritas-asset.com
Other International Funds
Real Return Asian Fund USD (Est) 279.23

4.37 0.00

Real Return Asian Fund GBP (Est) 297.30

4.74 0.00

Real Return Asian Fund EUR (Est) $ 291.82

4.54 0.00

Zadig Gestion (Memnon Fund)

FCA Recognised
Memnon European Fund I GBP

105.39

(LUX)
-

Zebedee Capital Partners LLP

0.54 0.00

(CYM)

Regulated
Zebedee Focus Fund Limited Class A EURO Shares 169.78

-0.96 0.00

Zebedee Focus Fund Limited Class B USD Shares $ 197.30

-1.19 0.00

Zebedee Focus Fund Limited Class A USD $ 170.38

-0.82 0.00

0.50 0.48

Veritas Asset Management LLP

Data Provided by Morningstar

www.morningstar.co.uk
Data as shown is for information purposes only. No
offer is made by Morningstar or this publication.

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NEWS

Movers &
shakers

C Laurent Seyer (pictured) has

joined MSCI, the indexing and
analytics provider, as global
head of client coverage.
Mr Seyer, a former chief
executive of Lyxor Asset
Management between 2006
and 2012, joins AXA
Investment Managers in Paris,
where he served as global head
of the client group.
C Two hires for WL Ross, the
$8bn distressed private equity
arm of Invesco, the $790bn USbased asset manager. Su Yeo
joins the investment team to
focus on the metals and mining
sectors, from Morgan Stanley
Principal Investments, while
Eric London has moved from
Credit Suisse to take on a role
developing client relationships
with endowments, foundations
and corporate clients.
C Henderson, the 76.6bn
global asset manager, has hired
Ian Dyble as head of product
development. Mr Dyble was
previously head of product
development and chief
operating officer at Cazenove
Capital Management.
Henderson has also promoted
James Bowers to the broader
role of global head of product
and distribution services and
will look for new hires across its
global distribution business in
2015.
C Luc Simoncini has moved to
Kames Capital to work for the
51.9bn Edinburgh-based fund
company as an equity product
specialist. He moves from
Mediolanum International
Funds in Dublin.
C Deutsche Asset & Wealth
Management has hired Roger
Bootz to head up the public
distribution of passive

Deutsche AWM has hired

Roger Bootz

THE LAST WORD

John Plender
A move to QE would be a
sign of desperation
the last throw of the
eurozone dice. Indeed,
investors are placing a
euphoric bet on a policy
of probably limited
effectiveness
investment products across
Europe, the Middle East and
Africa. Mr Bootz joins from
UBS, where he was head of ETF
capital markets for Europe.
C Smith & Williamson
Investment Management has
appointed Giles Worthington
to manage the Smith &
Williamson European Growth
Trust. Mr Worthington, a
former head of European
equities for M&G, joins from
RiverCrest Capital, a Londonbased boutique.
C Saracen Fund Managers, the
independent Edinburgh-based
investment company, has
appointed Jamie Matheson as
chairman. Jim Fisher, the
current chairman, will continue
as a director at Saracen. Mr
Matheson was the executive
chairman of Brewin Dolphin
between 2005 and 2013.
C Abingworth, the specialist
life sciences and healthcare
investment group has
appointed Kurt von Emster as
a partner, effective from
January. Mr von Emster, who
started his career as an analyst
and portfolio manager at
Franklin Templeton, cofounded venBio, a US private
equity healthcare group, in
2009.
C Christopher Sullivan has
moved to Armstrong
Investment Managers, a
London-based boutique as
head of distribution. Mr
Sullivan joins from Europe
Capital Markets, a capital
introducing group for
alternative fund managers he
founded in 2010.
C Sian Hansen has joined the
advisory board at Cerno
Capital, the London-based
investment group. Ms Hansen
is currently executive director
at the Legatum Institute, a
think-tank.
C Julian Gabriel has moved to
Cornerstone Real Estate
Advisers, the $46bn global
property investment manager,
as head of investment for
Europe. Mr Gabriel was
formerly head of real estate at
Doughty Hanson Real Estate
(DHCRE).

PAGE 13

INSIDE AND
ONLINE

QUOTE OF THE WEEK

Alan Miller, SCM Private

An index fund [has] fees
typically 80% less than a
closet index fund. To
pretend to sell one thing
and actually sell another
in any industry would be
fraud and individuals
would be aPrrested

VIDEO

PAGE 6

VIDEO.FT.COM/FTFM

Deteriorating liquidity
Particular challenge in
emerging markets debt
and high yield