MONDAY 11 APRIL 2016
Reverse gear YouTube retuned
Lawrence Summers on fighting the
revolt against globalisation — PAGE 11
Fears grow
over effect of
negative rates
on economy
3 BlackRock chief warns over savings
3 IMF cautions on cash hoarding
STEPHEN FOLEY — NEW YORK expected to further revise downwards
SHAWN DONNAN — WASHINGTON
its 3.4 per cent global growth forecast for
Negative interest rates risk hitting con- this year.
sumer spending and undermining the Mr Fink said that low rates were pre-
economic growth they are intended to venting savers from getting the returns
encourage, the head of the world’s larg- they needed to prepare for retirement,
est asset management group has so they were being forced to divert
warned. money from spending into savings.
Larry Fink, chief executive of Black- “Not nearly enough attention has
Rock, said that not enough attention been paid to the toll these . . . negative
was being given to the effect of negative rates are taking on the ability of inves-
rates on saving habits in a downbeat tors to save . . . for the future,” he said.
annual letter to his shareholders. A typical 35-year-old has to save more
His intervention came as the Interna- than three times as much to make the
tional Monetary Fund added fuel to the same retirement income when long-
debate on what effect negative interest term interest rates are at 2 per cent as
rates were having on the global econ- when they are at 5 per cent, he said.
omy by warning that there were “limits “This reality has profound implica-
on how far and for how long negative tions for economic growth: consumers
policy rates can go”. saving for retirement need to reduce
The fund said the introduction of neg- spending . . . A monetary policy
ative policy rates by central banks such intended to spark growth, then, in fact,
as the Bank of Japan had been broadly risks reducing consumer spending.”
positive so far, but highlighted the dan- In a blog post published yesterday,
ger of reaching a tipping point where José Viñals, the IMF’s top financial sta-
people would start to hoard cash. bility watchdog, and his co-authors said
The Bank of Japan, the European Cen- the economic benefits of the broad
tral Bank and four other central banks boost to demand from negative rates
around the world have introduced over- outweighed the potential costs. But they
night negative interest rates in an effort warned that there were limits to how far
to bolster growth and raise inflation into negative territory rates could go
expectations. The monetary policy before they encouraged cash hoarding.
experiment is designed to encourage There was also at least one piece of
banks to lend, but its introduction has evidence that some hoarding may
been accompanied by doubts over its already have begun, the IMF economists
effectiveness and by widespread volatil- wrote, with demand for bank notes ris-
ity in financial markets. ing in Switzerland, where the central
The comments come ahead of this bank introduced negative rates in
week’s spring meetings of the IMF and December 2014.
World Bank, where the fund is widely Editorial comment page 10
China admits steel glut to stay as US
executive attacks ‘naive’ Europeans
TOM MITCHELL — BEIJING
CHRISTIAN SHEPHERD — SHANGHAI
SHAWN DONNAN — WASHINGTON
China’s steel sector will still have much
more capacity than it needs after
World Bank’s Kim sees restructuring, executives admitted at
surge in demand for loans the weekend, suggesting no let-up for
the beleaguered industry’s plant clo-
Interview i PAGE 3 sures and job losses across the globe.
The Chinese acknowledgment came as a
Australia A$7.00(inc GST) leading US steel executive and the Brit-
China RMB25 ish foreign minister added their voices
Hong Kong HK$30 to concerns about the recent surge in
India Rup195 exports from China.
Indonesia Rp40,000 The growing international contro-
Japan ¥630(inc JCT) versy surrounding China’s steel indus-
Korea W4,500 try comes at an awkward time for China,
Malaysia RM10.50
which is seeking to secure market econ-
Pakistan Rupee 280
Philippines Peso 130
omy status this year. Such a move would
Singapore S$5.50(inc GST)
make it harder for the west to prove that
Taiwan NT$130 Chinese steel plants were “dumping”
Thailand Bht140
Vietnam US$4.50
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WORLD BUSINESS NEWSPAPER
Music majors try to upgrade
licence deals — PAGE 17
Panama fallout Cameron pushes for
criminal sanctions over tax evasion
Protesters in London call for David Cameron to resign at the weekend — Neil Hall/Reuters
GEORGE PARKER — LONDON
David Cameron, UK prime
minister, will today announce
criminal sanctions on London
banks and law firms whose
staff facilitate tax evasion, as
he tries to defuse the dispute
over his own use of offshore
funds.
Mr Cameron claims to be a
leading global campaigner
against shady offshore prac-
tices, yet has been on the back
foot for more than a week over
his personal finances after the
release of the so-called Panama
Papers.
Thousands of demonstrators
at the weekend backed calls
their products overseas at below cost.
While the US is resisting China’s push
to secure the WTO status, the EU and
UK have said they are open to the idea.
The head of US Steel, the US’s biggest
steelmaker, has accused the EU and UK
of being “negligent” in their approach to
the dumping of cheap steel on world
markets by China, arguing that the
worst crisis facing the industry in 50
years is the result of misguided policies.
Mario Longhi, chief executive, told
the Financial Times he thought Euro-
pean officials and the British govern-
ment had been naive and were now pay-
ing the price for accommodating China.
“The Europeans have been more neg-
ligent than anybody. For them to
be . . . considering granting as a fact
market economy status to China where
you have all the evidence in place that
denies them that right it’s just ridicu-
World Markets
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ASIA
Lucy Kellaway
Don’t blame millennials for
fleeing jobs — BUSINESS LIFE, PAGE 14
Briefing
i Pulitzer-prize winner warns on Opec
Opec’s economic power is broken, Daniel Yergin,
author of Pulitzer-prize winning book The Prize, has
told the FT. He said the association of oil-exporting
countries has become irretrievably divided. — PAGE 15
i Argentina to roll out bond roadshow
Interest in a bond offering from Argentina, which is
expected to eclipse $12bn, has reached a zenith as
the Latin American sovereign launches a five-day
marketing tour across the US and UK. — PAGE 15
i Italy in effort to tackle banking fears
Italy is rushing to cobble together a rescue to address
concerns over the banking sector, but doubts remain
as to whether the plan will be sufficient to ringfence
the weakest of Italy’s large lenders. — PAGE 2
i Venezuela crisis inflamed by violence
An economic, social and political crisis
facing Nicolás Maduro, Venezuela’s
unpopular president, right, is being
aggravated by a rise in violence,
prompting fears the oil-rich country
risks becoming a failed state. — PAGE 6
i German politicians attack ECB policy
Politicians in German chancellor Angela Merkel’s
CDU/CSU bloc have attacked the European Central
Bank’s easy money policies for the rise of the
rightwing Alternative for Germany party. — PAGE 4
i Iceland’s Pirates on course for victory
Polls show voter support for Iceland’s three Pirate
party members at more than 40 per cent, making
them easy favourites to lead the nation after
elections promised for the autumn. — PAGE 2
i Nigeria embarks on borrowing spree
Kemi Adeosun, Nigeria’s finance minister, has said
she is widening the search for the “cheapest possible
money” to finance infrastructure projects and plug
from the Labour opposition for which are campaigning for Brit- the country’s $11bn budget deficit. — PAGE 4
the prime minister to resign, ain to leave the EU, have been
even though it appears he has unforgiving of a prime minister
broken no laws and paid all rel- who is leading the fight to keep Datawatch
evant UK taxes. the UK in the European club in
Mr Cameron admitted it had a referendum on June 23.
Hedge funds underperform
not been “a good week” and In a new attempt to regain Hedge fund
Indices rebased returns fell during
that he had fuelled the dispute the initiative, Mr Cameron will
HFRI Fund Weighted Composite the first quarter of
by failing to admit upfront last tell the House of Commons
S&P 500 index 105 the year, according
week that he used to have funds today that he will introduce a
to the Hedge Fund
in Blairmore, on offshore fund criminal offence for companies Research HFRI
based in Panama set up by his that fail to stop their staff facili- 100 composite index
father Ian, who died in 2010. tating tax evasion. which was down
Yesterday, Mr Cameron pub- London is a major centre for nearly 2 per cent
95
lished his tax returns going tax planning and some banks to March, however
back to when he took office in and law and accountancy firms they outperformed
2010 — an act of “unprece- fear the new law will put them 90 the S&P 500 index
dented transparency”, accord- in the line of fire in the event of Jan 2015 Apr 2016 which fell more
ing to Downing Street. But “rogue” employees advising cli- Source: Thomson Reuters Datastream than 5 per cent
some rightwing newspapers, ents on illegal tax moves.
lous,” he said. “You see the problem? It is
blowing up in their face.”
EU officials face a growing backlash
from European unions, industry and
politicians, especially after Tata Steel
said it would dispose of a Welsh steel
plant that employs 4,000 workers. The
Indian group has blamed cheap Chinese
exports for the pressure building on its
European operations.
The crisis at Tata’s Port Talbot facility
in Wales featured at a weekend meeting
of the UK and Chinese foreign ministers.
“I urged China to accelerate its efforts to
reduce levels of steel production,” Philip
Hammond, UK foreign secretary, said.
Luo Tiejun, an official with China’s
industry ministry, said cuts would
reduce annual steel capacity to about
1.1bn tonnes by 2020 while domestic
consumption was unlikely to exceed
700m tonnes.
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Fiscal strategy
Italy pushes for bank rescue fund
Finance minister calls
meeting to agree details
of ‘last resort’ bailout plan
RACHEL SANDERSON — MILAN
Italy is rushing to cobble together an
industry-led rescue to address mount-
ing concerns over the solidity of a bank-
ing sector whose woes pose a risk to the
wider eurozone economy.
Finance minister Pier Carlo Padoan
has called a meeting in Rome today with
executives from Italy’s largest financial
institutions to agree final details of a
“last resort” bailout plan.
Yet on the eve of that gathering, con-
cerns remain as to whether the plan will
be sufficient to ringfence the weakest of
Italy’s large banks, Monte dei Paschi di
Siena, from contagion, according to peo-
Ukrainians focus frustrations on Poroshenko
Financial revelations and
Dutch referendum setback
pile pressure on president
ROMAN OLEARCHYK — KIEV
NEIL BUCKLEY — LONDON
Two years after the revolution that top-
pled Ukraine’s pro-Russian president
Viktor Yanukovich, dozens of demon-
strators were burning tyres outside
Kiev’s presidential building again on
Friday, amid scuffles with riot police.
“We want him to come out here and
talk to us, to look him in the eyes and
ask: what is going on in our country?”
said Serhiy Koba, a protest leader —
referring not to Mr Yanukovich, but to
his successor: pro-western president
Petro Poroshenko.
The street protest capped a bad week
for Mr Poroshenko. It began with disclo-
sures in the Panama Papers that he had
set up an offshore holding company to
move his confectionery business — a pil-
lar of his billion-dollar fortune — to the
British Virgin Islands.
Then came another calamity as Dutch
voters in a referendum rejected ratifica-
tion of an EU-Ukraine integration agree-
ment, dealing a heavy blow to Kiev. It
was Mr Yanukovich’s refusal to sign that
EU accord, amid threats from Moscow,
that sparked the 2014 revolution.
“This is a verdict on a president
who . . . for the past two years has sys-
tematically and persistently chosen the
past over the future,” said Mustafa
Nayem, an instigator of the 2014
“Maidan” protests and now a reformist
MP in Mr Poroshenko’s parliament fac-
tion.
Another activist MP, Serhiy Lesh-
chenko, said the Dutch vote was a “cold
shower for Ukraine’s political elite” and
showed Kiev was “losing international
support because of the lack of reforms”.
Mr Leshchenko said the offshore rev-
elations may have contributed to the
Dutch “no” vote after front-page photo-
graphs in the Netherlands showed Mr
Poroshenko alongside Russian presi-
dent Vladimir Putin — whose associates
were also ensnared by the Panama
leaks.
Even though the president, and his
advisers Rothschild Trust, said he had
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ple involved in the talks. Italian bank
shares have lost almost half their value
this year amid investor worries over a
€360bn pile of non-performing loans —
equivalent to about a fifth of GDP. Lend-
ers’ profitability has been hit by a crip-
pling three-year recession.
The plan being worked on, which
could be officially announced as soon as
this evening, recalls the Sareb bad bank
created in 2012 by the Spanish govern-
ment to deal with a financial crisis in its
smaller cajas banks, say people
involved.
Although the details remain under
discussion, it foresees the establishment
of a private vehicle that will include
upwards of €5bn in equity contribu-
tions — mostly from Italy’s banks, insur-
ers and assets managers — and then a
larger debt component. The fund will
then mop up shares in distressed lend-
Yatseniuk
resigns
Prime
minister
accuses
party of
‘artificial
crisis’
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FINANCIAL TIMES Monday 11 April 2016
INTERNATIONAL
GLOBAL INSIGHT
EUROPE
Tobias
Buck
ers. A second vehicle will seek to buy northern Italy on Saturday. But people
non-performing loans at market prices. involved in the talks question whether
“It is a backstop fund,” said one per-
son involved in the talks.
The Italian government can provide
the plan would have the financial scope
to provide a buffer of last resort for
Monte dei Paschi di Siena. Italy’s third-
Spain’s reclusive Rajoy
only limited financial backing due to EU
state aid rules and because it is already
largest bank was the worst performer in
the 2014 European stress tests, with
appears to have been
struggling under a public debt load that
amounts to 132.5 per cent to GDP.
The bailout marks the latest and most
about €170bn in assets and about
€50bn in bad loans. It is considered by
many bankers to be the major risk to
written off too early
wide-reaching attempt by Italy to shore Italian financial stability and regarded
up confidence, having already spon- as too big to fail.
R
sored the rescue of four small banks last “Monte Paschi is the elephant in the emember Mariano Rajoy? Since Spain’s incon-
year and passed a law intended to speed room,” says one of Italy’s top bankers. clusive general election in December, the prime
up the sale of bad loans. Both earlier ‘The Italian The bank is already trading at zero minister has lived the life of a political recluse.
measures failed to eradicate market compared with its tangible equity value His appearances in the media have been scarce,
concerns. banks are if its bad debt disposal is taken into as have his interventions in parliament. Mr
Mr Padoan argued the industry had able to account at current prices, says Johan De Rajoy has dutifully carried on his role as acting prime min-
the wherewithal to address its problem. resolve their Mulder of Bernstein Research. By com- ister, attending summits and presiding over the weekly
“The Italian banks are able to resolve parison, when Lehman Brothers col- cabinet meeting. But he has been almost entirely absent
their critical issues themselves,” he told critical issues lapsed in 2008 it was trading at about 20 from the real political drama in Spain: the high-stakes
reporters at an industry meeting in themselves’ per cent of its tangible equity. cross-party negotiations to form the next government.
Mr Rajoy’s reluctance to take the initiative became clear
just weeks after the election, when he declined the king’s
mandate to form a new government. Despite leading the
Reform. Street protests largest bloc in parliament, Mr Rajoy argued that he had lit-
tle chance of winning over a majority of deputies. Instead,
it was left to his socialist rival — with just a quarter of the
seats in the legislature — to lead the coalition dance.
The prime minister’s stance has earned him the oppro-
brium of his political opponents and much of the Spanish
media. Not for the first time, the veteran conservative has
been likened to a political zombie — staggering around
close to the action, but dead all the same.
And yet, for all the scorn and ridicule, it now looks as if
Mr Rajoy has again been written off too early. In a political
career spanning three decades, he has survived two gen-
eral election defeats, years of desolate poll ratings, the
worst economic crisis in recent memory and a seemingly
never-ending string of party corruption scandals. But he is
still here — running his early-morning rounds inside the
Moncloa government compound, while his rivals merely
bang at the gates.
More importantly, two
crucial factors are finally
All recent surveys
swinging his way. The suggest that his
first is the apparent ina-
bility of Spain’s other
Popular party will
main parties to come to a hold on to, or even
government accord.
Pedro Sánchez, the leader
extend, its lead
of the socialists, has
signed up the centrist Ciudadanos party as an ally, but still
needs to convince the anti-austerity Podemos party to
back his bid for power. Progress towards such a three-way
alliance has been halting at best — undermined at every
turn by the ideological and political gulf between Podemos
and Ciudadanos. If parliament fails to elect a new prime
minister by May 2, the king will call a new election. Time
for a deal to unseat the incumbent is running out fast.
The second spot of good news for Mr Rajoy can be found
Police scuffle with protesters in in the polls. All recent surveys suggest his Popular party
front of the presidential office in will hold on to, or even extend, its lead over the other par-
Kiev — Sergey Dolzhenko/EPA ties. With turnout predicted to fall from December, the PP
seems destined to lift its tally of seats in parliament beyond
the current 123. What is more, with Ciudadanos also
not broken rules or evaded tax, the dis- resigned on Sunday after a two-month expected to improve its result, a centre-right majority gov-
Ukraine’s prime minister tendered his closures have crystallised disillusion- political crisis. As the Kiev infighting ernment may be within reach. Even if it is not, the pressure
resignation yesterday, accusing the ment with the smooth, English-speak- has continued, discontent has shifted on the socialists to join forces with the PP in a German-
president’s party of plunging the war- ing Mr Poroshenko. towards his rival — Mr Poroshenko. style “grand coalition” would be huge.
scarred and recession-ravaged The man who swept to a first-round Anders Aslund, a Ukraine expert at Political sentiment in Spain has been volatile of late.
country into an “artificial crisis”. victory with 53 per cent of the vote in the Atlantic Council think-tank in Support may well shift again — as may the calculations of
In announcing his decision, Arseniy May 2014 elections has since seen his Washington, said the crisis had been the other Spanish parties if a PP victory moves closer. And
Yatseniuk made clear his party — the approval rating slip to barely 20 per precipitated by attempts by the Porosh- then there is the issue of Mr Rajoy’s own standing, both
second largest in Ukraine’s legislature cent, according to recent polls. Since the enko camp to consolidate more power within his party and within a future coalition government.
— was keen to stabilise the country by revolution that brought him to power, over the government. PP insiders know only too well that appointing a new
joining a new ruling coalition. He Ukrainians have suffered the Russian It began with February’s resignation of leader would increase the party’s chances at the ballot box
signalled that his political allies would annexation of Crimea, the conflict with Aivaras Abromavicius, the technocratic, — and remove a crucial obstacle to any deal with Ciu-
back as prime minister Volodymyr Moscow-backed separatists in the east, Lithuanian-born economy minister. Mr dadanos or the socialists. Both have attacked Mr Rajoy as a
Groysman, parliament speaker and a and a slump in living standards. Abromavicius accused a prominent MP symbol of the country’s tarnished old politics but could
close confidant of president Petro “Not enough has changed,” explained and business partner of Mr Poroshenko find it hard to reject a younger PP leader as prime minister.
Poroshenko. an employee of Ukraine’s central bank of exerting pressure to stack the man- Neither does Mr Rajoy enjoy popularity among Spain’s
Stepping aside to allow Mr watching Friday’s protest. His comment agement of state companies, which offer business leaders, many of whom insist that any solution to
Groysman to replace him as premier reflects a widespread view that the lucrative opportunities for rent-seeking, Spain’s political deadlock must be based on keeping
will put the spotlight and pressure country is still dominated by vested with presidential loyalists. Podemos out of government and sacrificing Mr Rajoy.
upon Mr Poroshenko, an oligarch, who interests and oligarchs — of whom Mr Ukraine’s ruling pro-western coali- His odds of returning to power, in other words, are far
has come under fire since the Panama Poroshenko has long been one — who tion then splintered when Mr Yatseniuk from good. But they have improved notably in recent
Papers probe was published. are blocking reforms to curb corruption narrowly survived a parliamentary no- weeks — and are certainly no worse than those of his rivals.
“We can’t allow one thing — and boost the rule of law. confidence vote, stalling the next pay- Mr Rajoy, perhaps alone among party leaders in Spain, can
destabilisation of the executive branch Criticism over the slow reforms was ment from a $17.5bn International Mon- look ahead to a new election with a genuine sense of calm.
during a war,” Mr Yatseniuk said. previously targeted largely at prime etary Fund support package.
minister Arseniy Yatseniuk, who Wolfgang Münchau see Comment tobias.buck@ft.com
Iceland elections
Pirates set course for power as Panama Papers batter coalition
MURE DICKIE — REYKJAVIK finds the prospect of national power a where doing so would violate the rights Green Movement, says she welcomes
little frightening. of other individuals. the Pirates’ rise, even though it has
Iceland’s three Pirate party members
In an interview in Iceland’s Althingi The Pirates defy convention by hav- largely overshadowed her own party,
of parliament won their first legislative
parliament as pot-bashing protesters ing no individual leader, with chairman- which won seven seats in the 2013 elec-
victory last year: the repeal of blas-
rallied outside, Ms Jonsdottir recalled ship of the party’s parliamentary group tion to Iceland’s 63-seat parliament.
NOVEMBER 7 2015
phemy laws that threatened jail for
having a dream in 2003 in which she alternating between MPs annually. The Pirates’ focus on transparency
anyone insulting religion on this once-
was Iceland’s prime minister. Their policymaking institution is a and direct democracy contrasts well
pious island of 330,000 souls.
“It was a nightmare . . . It was really decentralised online platform in which with policies of the nationalist rightwing
That now looks like just the start. From scary,” she said. “My biggest fear, and it all members can take part in developing groups that in other European nations
a minor offshoot of the international, is a big fear of many of the Pirates, is that proposals. are gaining from discontent with tradi-
ROLLING IN THE DEEP
anti-copyright Pirate movement, the we don’t want to become one with the tional politics, Ms Jakobsdottir says.
21/10/2015 10:51
Icelandic Pirates have in less than four power.” “The pirates are essentially a positive
years become by far its most successful Yet while Ms Jonsdottir insists she ‘We don’t want to force,” she says. “I think it’s a good thing
become one with
standard-bearers. does not want to be premier, she clearly the power,’ says that they are the party that is gaining
Polls show voter support for the relishes the prospect of being able to Birgitta Jonsdottir, from political dissatisfaction, not a dif-
Pirates at more than 40 per cent, mak- turn Pirate policies into parliamentary parliamentary ferent sort of party.”
head of the Pirates
ing them easy favourites to lead the priorities. Yet with little party structure and
nation after elections promised for It is an extraordinary achievement for only meagre funds, some say the Pirates
autumn by a ruling coalition battered by a party that proudly hangs a skull and Even rival opposition parties admit are ill-prepared to run the country.
Panama Papers revelations of ministers’ crossbones flag in its parliamentary the Pirate party’s appeal — particularly “It’s not like people learn how to run a
ties to offshore finance. office and says its goals have widened at a time when the Panama Papers have government in university . . . but that’s
With proposals including granting far beyond copyright reform to include reopened the scars from the 2008 finan- also partly the reason why people want
citizenship to US spy agency whistle- transformation of the entire political cial crisis and deepened the suspicion us, because they want us to rewrite the
blower Edward Snowden and drug system. among many that Iceland’s two ruling rules of what it means to be a political
decriminalisation, a Pirate party-led Core Pirate policy principles include parties are in thrall to wealthy interests. party in power,” says Asta Helgadottir, a
government would be likely to send belief in citizens’ “unlimited right” to “The Pirates really have the hearts Pirate MP.
political tremors far beyond the seismi- involvement in political decisions that and minds of the people at the Many voters, exasperated with what
cally unstable island. affect them and the rejection of “any moment,” says Eva Bjarnadottir of the they say is Iceland’s endemic cronyism,
Even Birgitta Jonsdottir, leader of the limits” on their rights to express them- Social Democratic Alliance. are clearly willing to consider a punt on
Pirates’ parliamentary group, says she selves or share information except Katrin Jakobsdottir, leader of the Left- the Pirates.
Monday 11 April 2016
Interview. Jim Yong Kim
World Bank
loans at record
level since
financial crisis
Demand for aid increases as
commodity exporters struggle
to cope with collapse in prices
SHAWN DONNAN — WASHINGTON
A surge in demand by ailing commodity
exporters in the developing world has
pushed up lending from the World Bank
this year to its highest levels since the
aftermath of the 2008 financial crisis.
Finance ministers and central bank-
ers from around the world are due to
gather in Washington this week for the
spring meetings of the World Bank and
the International Monetary Fund. The
IMF is widely expected tomorrow to
downgrade its 3.4 per cent global growth
forecast for this year.
But alongside scheduled discussions
on everything from slowing emerging
economies to tax havens, officials at the
World Bank will be dealing with an
increase in requests for loans from com-
modity exporters such as Indonesia,
Nigeria and Peru as they struggle to cope
with the effects of the collapse in global
commodity prices.
In the fiscal year to June, the bank is set
to lend $25bn-$30bn via its main lending
arm, the International Bank for Recon-
struction and Development, the bank’s
top two officials said in an interview with
the Financial Times. That would be the
most the IBRD has loaned to member
countries since the immediate aftermath
ofthe2008financialcrisis,whichin2010
sawthebanklend$44.2bn.
“It is our highest lending in a non-cri-
sis period ever,” said Jim Yong Kim, the
World Bank’s president, who is seeking
an increase in the bank’s capital, driven
in part by the rising demand for aid.
Part of the surge in lending, Mr Kim
said, was due to increasing requests to
help with crises ranging from Ebola to
the exodus of millions of people from
Syria and other conflict-affected
countries, as well as longer-term
responses to issues such as climate
change.
But almost half of this year’s
lending — about 45 per
Jim Yong Kim, the
World Bank’s
president
Brookings-FT index
Global economic recovery
‘in danger of stalling yet again’
CHRIS GILES — LONDON
The world economy is beset by feeble
growth and a recovery that is “weak,
uneven and in danger of stalling yet
again”, according to the latest
Brookings Institution-Financial Times
tracking index.
In a publication ahead of the spring
meetings of the International Monetary
Fund and World Bank this week, the
index provides sober reading, highlight-
ing sluggish capital investment, falling
industrial production and declining
business confidence.
The results of the index are likely to
be reflected in IMF forecasts for the glo-
bal economy tomorrow, prompting
Christine Lagarde, fund managing
director, to warn of the need to be
“alert” to global risks with growth “too
low for too long”. The IMF is widely
expected to revise its 3.4 per cent fore-
cast for growth in 2016 down again.
According to Professor Eswar Prasad,
an economist at Brookings, the worst
fears of a financial and economic crisis
in January and February “might be over
but after yet another year of tepid
growth in 2015, the world economy in
2016 faces the unsettling prospect of
more of the same”.
While the IMF has become more pes-
simistic about the outlook in recent
weeks, the Brookings-FT Tiger index —
Tracking Indices for the Global Eco-
nomic Recovery — suggests there has
been some stabilisation of conditions
after a big decline in growth rates in the
second half of last year.
The index shows how measures of real
activity, financial markets and investor
confidence compare with their histori-
cal averages in the global economy and
within each country. There is evidence
★ FINANCIAL TIMES 3
INTERNATIONAL
More on ft.com
Isabella Lovin,
Sweden’s minister
for international
development
co-operation, and
Kaifala Marah,
Sierra Leone’s
minister of finance
and economic
development,
discuss the need for
further action to
stem the roots of
terror and forced
migration
ft.com/beyondbrics
cent — will come in the form of what the
World Bank calls “development policy
lending” — lending directly to national
budgets that is not tied to specific physi-
cal projects — said Sri Mulyani Indra-
wati, the bank’s chief operating officer.
Demand for such loans is growing as
A street in
the collapse in oil and other commodity
Luanda,
prices has left yawning budget gaps in
Angola’s capital.
countries such as Nigeria. Africa’s top
Angola last
exporter is in increasingly dire eco-
week requested
nomic straits and has turned to the bank
an IMF
to help it plug what is expected to be an
emergency loan
$11bn budget deficit this year. Herculano Corarado/Reuters
Such lending has prompted criticism
that the World Bank is at risk of
encroaching on the IMF’s crisis-re-
sponse role, and that it is in effect ena-
bling governments to avoid making the
tough political decision to turn to the
IMF for assistance.
There is some evidence that lending
by the bank has helped governments at
least to delay an approach to the fund,
whose rescues often come with
demands for reforms attached and
carry stigma for countries.
Angola last week requested an IMF
emergency loan, marking the second
time in less than seven years that it has
turned to the fund. Yet that move came
just nine months after it received a
$650m budget support package from
the World Bank and after it had spent
years garnering financial support from
China to avoid a return to the fund.
Both Mr Kim and Mrs Sri Mulyani
denied the World Bank was seeking to
infringe on the IMF’s territory. The
bank’s lending, they said, also came
with plenty of requirements for reforms
and in consultation with the IMF.
“I think you would be hard-pressed to
find a country that sees us as an easy
mark compared to the IMF,” Mr Kim
said.
The surge in demand highlighted the
need for World Bank shareholders
to consider giving it more
resources,MrKimsaid.
Shareholders are building
up to the regular replenish-
ment later this year of the
World Bank’s fund. That will
be followed by a bigger discus-
sion that will climax next
year over the World
Bank’s capital struc-
ture, Mr Kim said.
of extreme weakness in emerging mar-
kets, with recent data from many econo-
mies much worse than their historical
averages, although there has not been a
further decline in 2016.
In advanced economies, the data are
generally better, but the growth index is
no higher than its long-term average as
confidence has stumbled amid weaker
financial markets and fears of shocks
such as Britain’s potential departure
from the EU.
“Unless governments demonstrate
the ability and willingness to undertake
reforms and use policy measures to
aggressively support growth, even the
anticipated weak growth could be
knocked off track,” Prof Prasad said.
Most positive economic news is cur-
rently coming from the US where
employment, retail sales and credit
growth remain strong despite faltering
business confidence. Eurozone indica-
tors are generally a little stronger in
2016 than last year although invest-
ment, retail sales and consumer confi-
dence remain weak across the bloc, rais-
ing concerns about the sustainability of
the recovery.
The UK has also held up, although
investment, business confidence and
industrial production appear to be suf-
fering from uncertainties caused by the
June referendum on EU membership.
In emerging economies, China
appears to have withstood fears of capi-
tal flight and currency devaluation that
were rampant at the beginning of the
year.
“Nevertheless, while Beijing is keen to
stimulate growth, it is not showing
much appetite for substantive market-
oriented reforms — especially reform of
the state enterprise sector — at a time of
weak growth”, Prof Prasad said.
4 ★ FINANCIAL TIMES Monday 11 April 2016

INTERNATIONAL

Germany Jihadi network

Berlin blames ECB for rightwing revival Brussels

Politicians say excessive
liquidity has led to surge in
support for populist AfD
STEFAN WAGSTYL — BERLIN
CLAIRE JONES — FRANKFURT
German political leaders are blaming
the European Central Bank’s easy
money policies for the rise of the right-
wing Alternative for Germany party, in
a dramatic escalation of tensions
between Berlin and Frankfurt.
Stung by the AfD’s success in last
month’s regional elections, top politi-
cians in chancellor Angela Merkel’s con-
servative CDU/CSU bloc have gone on
the offensive against the central bank,
hoping to reverse damaging losses in
voter support.
The AfD secured the best results for
any German rightwing party since the
second world war by opposing chancel-
lor Angela Merkel’s open-door refugee
policy. Yet the populist party has also
won backing by criticising loose euro-
zone monetary policies that are deeply
unpopular in Germany.
Combative finance minister Wolfgang
Schäuble on Friday evening pinned half
of the blame for AfD’s rise on ECB chief
Mario Draghi. In remarks reported by
Dow Jones, Mr Schäuble told an
audience: “I said to Mario Draghi . . . be
very proud: you can attribute
50 per cent of the results of a party that
seems to be new and successful
US election. Democratic nomination
in Germany to the design of this policy.”
He added: “There is a growing under-
standing that excessive liquidity has
become more a cause than a solution to
the problem.”
Mr Schäuble’s comments come amid
other attacks from Ms Merkel’s coali-
tion. While the chancellor herself has
remained silent on the matter, her reti-
cence has not inhibited other ministers.
Alexander Dobrindt, transport minis-
ter and a leading figure in the Bavaria-
based CSU, yesterday highlighted sav-
ers’ complaints that low interest rates
rob them of retirement income. “The
ECB is following a very risky course. The
disappearance of interest rates creates a
gaping hole in citizens’ old age prepara-
tions,” he told Die Welt newspaper.
Even Sigmar Gabriel, vice-chancellor
and leader of the social democrats, who
have generally been less critical of
expansionary monetary policy than the
CDU, recently complained about the
impact of low interest rates — although
he placed the blame on eurozone gov-
ernments for failing to generate suffi-
cient growth.
“What the European Central Bank is
doing now is for many savers, for little
people, for workers, for pensioners, an
expropriation, but it is not the ECB’s
fault,” Mr Gabriel said. “The blame lies
with Europe's inability to put together a
joint growth programme.”
ECB officials have hit back at the Ger-
man criticisms. At a Frankfurt eco-
nomic conference last week, chief econ-
omist Peter Praet said that the sniping
from Germany was “sometimes hard to
swallow”.
A key factor in the row may be the
deepening concern in Berlin that the
ECB might resort to so-called “helicop-
ter money” — which could involve dis-
tributing cash direct to the population —
to further boost the faltering eurozone
economy if its huge bond-buying opera-
tion fails to deliver sufficient stimulus.
ECB officials have downplayed the
helicopter money idea, but they have
not ruled it out.
The German finance ministry at the
weekend denied a Spiegel magazine
report that it was examining whether
such moves would infringe the ECB’s
legal mandate.
bombers had
planned to
launch Paris
terror attack
CHRISTIAN OLIVER AND PETER SPIEGEL
BRUSSELS
Jihadis who killed 32 people in Brussels
last month only launched their double
bombing at the last minute after they
were forced to abort an assault on
Paris, it was revealed yesterday.
While Belgian prosecutors said their
investigation led them to believe that
Paris was the preferred target, they did
not say whether that assessment came
from interrogating Mohamed Abrini,
who confessed on Saturday to being the
lone surviving airport bomber.
Mr Abrini has been the most wanted
man in Europe since the attacks on

Sanders closes in on Clinton with Wyoming victory
Recent polls show that
margins have narrowed in key
states such as New York
COURTNEY WEAVER — WASHINGTON
Hours after winning the Wyoming Dem-
ocratic caucus on Saturday, Bernie
Sanders received backhanded congrat-
ulations from an unlikely source.
“Once the inevitable frontrunner, Hil-
lary Clinton has now lost her seventh
straight contest,” declared Reince Prie-
bus, chairman of the Republican
National Committee. “This embarrass-
ing streak of defeats to a 74-year-old
socialist from Vermont is another
reminder of what a desperately flawed
candidate she is, and how beatable she
will be in November if she becomes the
nominee.”
For Mr Sanders’ campaign staff and
supporters, Mr Priebus got it all wrong.
Mr Sanders’ victory in Wyoming this
weekend where he won with 56 per cent
of the vote is the result of hard legwork
across the country, they say, as Mr Sand-
ers’ message of fixing income inequality
and reforming Wall Street chimes with
more and more voters.
The odds of winning
remain in Clinton’s favour.
She has received 2.4m
more votes than Sanders
“We’re winning primaries and cau-
cuses by dramatic margins and those
victories have opened up a clear path to
the nomination,” Jeff Weaver, Mr Sand-
ers’ campaign manager, asserted.
The result is even more surprising, he
and others say, given the relatively small
amount of attention Mr Sanders has
received compared with Mrs Clinton.
“In the face of one of the best-organ-
ised political machines in modern
American history, we are doing what no
one thought possible: winning,” Mr
Sanders told supporters yesterday,
referring to the campaign’s seven con-
secutive victories in states such as
Washington, Idaho and Wisconsin.
While Mrs Clinton’s strong perform-
ance in early March contests — includ-
ing Florida, Ohio and a slew of states
across the south — threw the primary in
her favour, Mr Sanders and his cam-
paign believe they still have a shot at the
nomination, or at least a contested
convention.
To lock up the nomination outright
ahead of the Democratic convention in
Bernie Sanders Philadelphia in July, Mrs Clinton needs
speaks during a the support of 2,383 pledged delegates.
campaign event She has won 1,305 delegates while Mr
in Brooklyn, Sanders has won 1,086. Of the remain-
New York, on ing 1,959 delegates up for grabs, Mrs
Friday Clinton will need to win 55 per cent of
John Taggart/Bloomberg
them to win the nomination outright.
The odds of winning the nomination
remain in Mrs Clinton’s favour. She has
received 2.4m more votes than Mr
Sanders and leads him by over 200
pledged delegates. Yet recent polls have
shown narrowing margins for Mrs Clin-
ton in key states such as New York,
where Mr Sanders is now just 11 points
behind Mrs Clinton, according to a poll
from Quinnipiac University, even
though Mrs Clinton served for eight
years as a New York senator.
Geoff Garin, a Democratic pollster
who works with Priorities USA, a pro-
Clinton super-Pac, says that a Sanders
victory in New York on April 19 would
be a “significant” event for both cam-
paigns but would not seriously obstruct
Mrs Clinton’s path towards the nomina-
tion, noting that he believed Mrs Clinton
could overcome any weaknesses. Still,
he acknowledged that Mr Sanders’ cam-
paign and platform had struck a chord
with voters across the US.
“There are a lot of people in the coun-
try who feel like they have not been
made whole since the time of the crash.”
At first they “were angry but expected it
would get better”, he said. Now “a lot of
people have run out of patience”.
David Caputo, a political-science pro-
fessor at New York’s Pace University,
said Mr Sanders’ message has resonated
with two groups of voters: those who
make up the progressive, more liberal
wing of the Democratic party, particu-
larly millennials, but also conservative,
blue-collar voters who are frustrated
with the economic status quo and for
whom Mr Sanders’ message of breaking
up the banks and levelling the playing
field for American workers has had par-
ticular appeal.
Should Mrs Clinton win the nomina-
tion, she faces a tall order: “she has to
bring those wings of the party back in”, a
result that is not necessarily inevitable,
he says. “What happens to this younger
vote not just in 2016 but beyond. Do
they become disillusioned and drop out
or what?”
At a diverse gathering of 13,000
Bernie Sanders supporters in the south
Bronx this month, his followers contem-
plated aloud whether they would be
willing to vote for Mrs Clinton.
Stephanie Edwards — a public rela-
tions worker who works in the Bronx —
said although she had supported Mrs
Clinton in 2008, she now thought Mr
Sanders was the better advocate for peo-
ple like her.
‘Once the A recent poll by AP-GfK found that 55
per cent of Americans viewed Mrs Clin-
inevitable ton unfavourably while only 38 per cent
frontrunner, say they had a negative opinion of Mr
Hillary Sanders.
Luis Miranda, head of communica-
Clinton has tions for the Democratic National Com-
now lost her mittee, said he believed the majority of
seventh Democratic voters would ultimately
rally around the eventual nominee, just
straight as most of Mrs Clinton’s supporters had
contest’ voted for Barack Obama in 2008.
Brussels’ airport and metro on March
22. He was finally arrested on Friday,
pinned down on the pavement by plain-
clothes officers while walking in the
Brussels neighbourhood of Anderlecht.
The next day he confessed to being
the infamous “man in a hat” captured
on CCTV in the company of two suicide
bombers pushing luggage trolleys at
Zaventem airport before the explosions.
Mr Abrini, a Belgian of Moroccan
descent, first came to public attention
after November’s assault on Paris, when
surveillance footage showed him driv-
ing a Renault Clio used in the attacks.
The 31-year-old’s connection to the
Paris and Brussels attacks is only one
piece of a growing swell of evidence sug-
gesting the existence of a sprawling
jihadi “super cell” responsible for atroc-
There is little hope among
security experts that the
Brussels cell has been
entirely decapitated
ities across France and Belgium.
Belgian authorities hoped that they
had struck a debilitating blow against
that cell on March 18, when they
arrested Salah Abdeslam, the only sur-
viving attacker from Paris.
But the prosecutors suggested that his
arrest could have spurred the terrorists
to drop plans to attack Paris again and
instead strike at home before their plot
was betrayed.
“Surprised by the high speed with
which the investigation was advancing,
they finally decided, in haste, to hit
Brussels,” the prosecutors said.
Mr Abrini’s confession came on the
same day that Belgian investigators
announced they had captured the other
most sought-after man in the Brussels
bombings: a conspirator seen travelling
on the city’s metro the morning of the
attack with Khalid El Bakraoui, the sui-
cide bomber who blew himself up at
Maalbeek station.
This suspect, named by authorities
only as Osama K but identified by Bel-
gian media as 23-year-old Swedish
national Osama Krayem, was seen at
Maalbeek station at the time of the
attack, and was earlier pictured at a
Brussels shopping mall buying suitcases
later used in the attacks. Mr Krayem
was also charged with terrorist murders.
Capturing the “man in the hat” and
the second conspirator at Maalbeek
would bring the search for men directly
involved in the Brussels’ attacks to a
close. In addition to El Bakraoui and his
brother Ibrahim, who blew himself up
at the airport, police have named 24-
year-old Najim Laachraoui as the
second airport suicide bomber.
However, there is little hope among
security experts that the Brussels cell
has been entirely decapitated.

Capital raising

Nigeria seeks foreign funds for infrastructure projects after oil price collapse
MAGGIE FICK — LAGOS
Nigeria is embarking on a borrowing
spree to pay for infrastructure projects
its government believes are key to
reviving an economy hit by the collapse
in oil prices.
In an interview with the Financial
Times and Reuters, Kemi Adeosun,
Nigeria’s finance minister, said she is
widening the search for the “cheapest
possible money” to finance projects and
plug an $11bn budget deficit. She is now
considering tapping the Chinese and
Japanese bond markets.
Separately, Muhammadu Buhari, the
president, is in Beijing this week drum-
ming up direct Chinese financial sup-
port for his infrastructure plans.
The crash in oil prices has hammered
Africa’s top exporter, slowing growth to
its lowest level in 15 years and exposing
once again the fragility of an economy
that derives 90 per cent of its export
earnings from crude.
Mr Buhari, the austere former mili-
tary ruler elected last year on a wave of
optimism and hope for change, inher-
ited state coffers drained by what he
said was rampant corruption on his
predecessor’s watch. A year on, he is fac-
ing growing criticism for holding tight to
exchange rate policies that have
compounded the challenges facing busi-
nesses and contributed to severe fuel
shortages.
Ms Adeosun, like Mr Buhari, argues
that Nigeria cannot rely on a rebound in
oil prices and must use this difficult
time to diversify the economy — some-
thing she says successive Nigerian gov-
ernments have talked about but failed
to do.
Improving electricity supplies, road
and rail networks is the first step, she
said, arguing that agriculture and man-
ufacturing will not take off before infra-
structure is built.
To do this, Nigeria will run a budget
deficit for the next two to three years,
she said, and will require a consistent
stream of “bulk money” to ensure fund-
ing does not dry up and halt work.
Ms Adeosun wants to borrow 1.8tn
naira ($9bn) of the record 2.2tn naira
($11bn) deficit from international and
local markets. She has also begun talks
with the World Bank and the African
Development Bank over $3.5bn in loans.
Those efforts have yet to yield the
funds and there has been no roadshow.
Ms Adeosun said that although the
Eurobond market was still an option,
the Chinese and Japanese markets were
looking cheaper and more appealing:
“We were looking, originally, at doing
about a billion dollars on the Eurobond
market so we may split that between the
renminbi and the eurobond”.
The delayed passage of the budget —
approved by parliament last month —
had slowed the process but Nigeria was
still on track to be in the market by the
third quarter, she added.
A stickier issue may be the budget
support loans the minister hopes to
receive from multilateral lenders to
plug the rest of the deficit. The minister
Kemi Adeosun is widening the
search for money to fund projects
says the World Bank has approved the
government’s “policy framework”
aimed at boosting tax collection and
improving oversight of government
spending.
But it remains unclear whether the
exchange rate policy will get in the way.
The IMF has made plain its concerns
and said in its annual review restrictions
had “adversely impacted economic
activity”. It also questioned the govern-
ment’s commitment to containing infla-
tion, which jumped to 9.6 per cent in
January, from 7.9 per cent in December.
The minister said there was no dis-
pute with the IMF and stressed that
despite not yet locking down borrowing
requirements, “we’re not desperate,
there are options”.
The projected deficit figure requires
Nigeria to substantially increase non-oil
revenues this year to account for the
shortfall caused by the crude price
crash. Ms Adeosun says this is possible
by implementing basic measures that
should have been in place for years. Min-
istry payrolls are being cleaned up and
ghost workers removed. Government
agencies are being forced to account for
their earnings and expenditures.
She also has a back-up plan if she is
unable to raise sufficient non-oil reve-
nues: in a pinch, the government would
withhold up to $5bn in “cash calls”
budgeted this year to finance its share of
costs in joint ventures with interna-
tional oil companies.
This would force the oil majors to
make up some of the difference by pro-
viding bigger loans to the state-run
NNPC — a move likely to frustrate the
industry and hurt output. The NNPC
already owes at least $4bn to the majors
and analysts have warned that unless
funding issues are resolved the coun-
try’s 2.1m b/d oil output will drop.
Monday 11 April 2016 ★ FINANCIAL TIMES 5
6 ★
Venezuela teeters on the edge of chaos
Oil-rich country
risks becoming
a failed state as
violence escalates
and the economic
crisis deepens
ANDRES SCHIPANI
ANDES CORRESPONDENT
At the main morgue of central Caracas,
the stench forces everyone to cover their
nostrils. “Now things are worse than
ever,” says Yuli Sánchez. “They kill peo-
ple and no one is punished while fami-
lies have to keep their pain to them-
selves.”
Ms Sánchez’s 14-year-old nephew,
Oliver, was shot five times by malandros,
or thugs, while riding on the back of a
friend’s motorcycle. His uncle, Luis
Mejía, remarks that in a fortnight three
members of their family have been shot,
including two youths who were shot by
police.
An economic, social and political cri-
sis facing Nicolás Maduro, Venezuela’s
unpopular president, is being aggra-
vated by a rise in violence which is
prompting fears that this oil-rich coun-
try risks becoming a failed state.
“What can we do?” Mr Mejía asks.
“Give up.”
The morgue employee in charge of
handling the corpses notes that a decade
ago he received seven or eight bodies
every weekend. These days, he says,
that number has risen to between 40
and 50: “This is now wilder than the
wild west.”
Critics say that the Venezuelan gov-
ernment is increasingly unable to pro-
vide citizens with water, electricity,
health or a functioning economy that
can supply basic food staples or indis-
pensable medicines, let alone personal
safety.
Last month alone, Venezuelans learnt
of the summary execution of at least 17
gold miners supposedly by a mining
mafia, the killing of two police officers
allegedly by a group of students who
drove a bus into a barricade, and a hos-
tage drama inside a prison at the hands
of a grenade-wielding criminal gang. On
Wednesday, three policemen were
killed when an armed gang busted a
member out of a lock-up in the capital.
At least 10 were killed in a Caracas
shanty town after a confrontation
between local thugs armed with assault
rifles, while a local mayor was gunned
down outside his home in Trujillo state
last month. There are widespread
reports of lynchings.
All this is creating a broad unease that
Mr Maduro is unable to maintain order.
Venezuela has the world’s fastest infla-
tion rate and its dire recession is worsen-
People examine ing. Mr Maduro last week declared every
a banner Friday a holiday for the next two months
bearing the to save electricity as a prolonged drought
details of has exacerbated chronic power short-
victims of ages. There is a lack of basic goods. Ana-
violence that lysts warn that the economic crisis risks
took place turningintoahumanitarianone.
during protests “Failed state is a nebulous concept
against Nicolás often used too lightly. That’s not the case
Maduro’s with today’s Venezuela,” says Moisés
government Naím, a Venezuelan fellow at the Carne-
Marco Bello/Reuters
gie Endowment for International Peace.
“The evidence of state failure is very
concrete in the country that sits on top
of the world’s largest oil reserves.”
Venezuela is already one of the
world’s deadliest countries. The Vene-
zuelan Observatory of Violence, a local
think-tank, says the murder rate rose
last year to 92 killings per 100,000 resi-
dents. The attorney-general cites a
lower figure of 58 homicides per
100,000.
In 1998, a year before former leader
Hugo Chávez took office, the rate was
19 per 100,000, says the think-tank’s
director, Roberto Briceño León, adding
that after 17 years of socialist “revolu-
tion”, it is the poor who make up most of
the victims.
FINANCIAL TIMES
INTERNATIONAL
“I think it is evident that the Venezue-
lan state cannot act as a state in many
areas of the country, so it could be con-
sidered failed,” says Mr Briceño, adding
that the state now “lacks a monopoly on
violence”.
But the state itself is indeed to blame
for some of that violence, according to a
report by advocacy groups Human
Rights Watch and the Venezuelan
Human Rights Education-Action Pro-
gramme presented to the Inter-Ameri-
can Commission on Human Rights.
“Venezuelans are facing one of the
highest murder rates in the hemisphere
and urgently need effective protection
from violent crime,” says José Miguel ‘Venezuelans
Vivanco, HRW’s Americas director.
“But in multiple raids throughout the are facing one
country, the security forces themselves of the highest
have allegedly committed serious murder rates
abuses.” in the
Their findings show police and mili-
tary raids in low-income and immigrant hemisphere
communities in Venezuela have led to and urgently
widespread allegations of abuse, includ- need effective
ing extrajudicial killings, mass arbitrary
detentions, maltreatment of detainees,
protection
forced evictions, the destruction of from violent
homes, and arbitrary deportations. crime’
Middle East. Popular discontent
War-weary Iraqis grow nostalgic
for authoritarian past
After 13 years of violence,
Shia, Sunni and Kurds long for
stability of pre-2003 era
ERIKA SOLOMON — MUQDADIYA
For the victims of violence in Iraq, like
Um Alaa, years are no longer the marker
of time passing. Instead, there are eras:
“before sectarianism” and “the days of
sectarianism”.
Shrouded in black, Um Alaa rumi-
nates on one year in particular: 2003,
the year the US invaded Iraq and
toppled Saddam Hussein — and the last
year her family was intact. In 2004
her husband was gunned down by al-
Qaeda militants.
In the following years she lost all four
sons. The last one, Safaa, was killed in an
Isis suicide bombing in February. She
struggles to remember the dates — or
even whether it was al-Qaeda or Isis
responsible for each death.
“It’s all the same now,” she shrugs.
“What did we get from these leaders
who have come since 2003?” she asks
the commander of a Shia paramilitary
group who has come to pay his respects.
“At least then I could see my sons alive.”
The vicious and often sectarian
bloodletting that has marred Iraq since
Saddam was overthrown — and which
has spiked since Isis swept to promi-
nence — is stirring nostalgia among
some Iraqis for authoritarian rule.
Iraq’s majority Shia as well as minor-
ity Sunni and Kurds increasingly share a
frustration that the democracy brought
by the US occupation is so dysfunc-
tional. The oil-rich country is on the
verge of economic collapse because of a
The government usually blames vio-
lence within its borders on Colombian
rightwing paramilitaries engaged in a
war against its revolution.
However, as David Smilde and Hugo
Pérez Hernáiz of the Washington Office
on Latin America, a think-tank, recently
wrote: “Attributing violence in Vene-
zuela to paramilitary activity has been a
common rhetorical move used by the
government over the past year, effec-
tively making a citizen security problem
into a national security problem.”
For many Venezuelans it no longer
matters who is to blame.
“It is a state policy of letting anarchy
sink in,” says an ex-policeman outside
the gates of a compound in Caracas.
That former police station now
houses the Frente 5 de Marzo, one of the
political groups that consider them-
selves the keepers of socialism’s sacred
flame.
The gates bear the colours of the Ven-
ezuelan flag and are marked with bullet
holes. The man believes there is some-
thing akin to a civil war going on.
“Venezuela is pure chaos now. It
seems to me there is no way back,” he
says.
corrupt political elite who used a sectar-
ian patronage system to line their pock-
ets instead of improving shoddy public
services such as health, electricity and
water.
Some hint at a desire to go back to the
Saddam Hussein era — if not necessarily
for the dictator himself. Even in Iraq’s
semi-autonomous Kurdistan region,
where the dictator’s infamous 1988 poi-
son gas attack killed up to 5,000 people
in the town of Halabja, some locals said
they occasionally overhear friends
express a longing for the pre-2003 era.
On the streets of Baghdad, traders
grumbling about revenues down 50 per
cent also trace their problems to the end
of authoritarian rule. “Honestly, the
Former ruler
Abdelkarim
Qassim: ‘Maybe
he [represents]
the Iraq we could
go back to’
Saddam days were better than this.
What do we have now? We have eco-
nomic crisis. We have Isis. Instead of one
corrupt leader, we have dozens,” says
one sweets seller in the bustling Shourja
market, where vendors shout out the
prices of socks, candied nuts and party
hats. He and his fellow shopkeepers say
sales have dropped by 50 per cent.
“Not Saddam — let’s bring back the
monarchy,” another vendor shouts.
This should be a warning to Iraqi lead-
ers, says Ahmed Ali, senior fellow at the
American University of Iraq in Sulaim-
aniya. “The political class has its work
cut out to rewin the population.”
Read Mansour, an analyst at the Carn-
egie Endowment, dates the rise of dicta-
Monday 11 April 2016
Israel
Netanyahu
hails ‘strong
action’ for
fall in attacks
JOHN REED — JERUSALEM
A six-month wave of violence is subsid-
ing, Israeli prime minister Benjamin
Netanyahu told his government yester-
day, as the country’s Shin Bet internal
security service reported a sharp fall in
the number of attacks by Palestinians
on Israelis.
The rightwing Israeli leader credited
stricter security measures but warned
that the trend could reverse itself. The
Shin Bet said there was still “considera-
ble tension” and “various elements”
working to undermine stability.
The unrest, which at times gave rise to
one or more attacks a day, has dented
tourism in Israel and prompted com-
parisons with two previous uprisings.
Since October, Palestinians have killed
29 Israelis and four foreigners in knif-
ings, shootings and other attacks; at
least 190 Palestinians, mostly suspected
attackers, have been killed by Israeli
police, soldiers or civilians.
Israeli security forces, including a sol-
dier who was detained after he was
filmed shooting to death a wounded Pal-
estinian man in the West Bank city of
Hebron, have been accused by Palestini-
ans and human rights groups of using
excessive force during the violence.
“Today the cabinet will hear a [Shin
Bet] briefing that shows a significant
decline in the scope of terrorist attacks,”
Mr Netanyahu told ministers in public
comments before a weekly cabinet
meeting. “I say this with great caution
because this trend could reverse itself,
but we know it has been achieved . . . as
a result of the government’s strong,
responsible and methodical policy.”
The Shin Bet said 20 “significant”
attacks occurred in March, compared
with 78 in October. The last fatal attack
took place on March 9, when a Palestin-
ian stabbed and killed an American
tourist before he himself was shot dead.
Mr Netanyahu, who had been criti-
cised for failing to contain the violence,
attributed its decline to the “alertness”
of soldiers and police, and said Israel
had taken “very strong action”.
Analysts on both sides have attrib-
uted the violence to poor economic
prospects among Palestinians, a break-
down of the peace process, and tension
over Jewish visits to the holy site in Jeru-
salem known to Muslims as Haram al-
Sharif, and to Jews as Temple Mount.
Tensions in Jerusalem have calmed
recently, but yesterday Mr Netanyahu
accused Raed Salah, leader of the
banned northern branch of the Islamic
Movement, of seeking to reignite them
in the build-up to the Jewish feast of
Passover later this month.
tor nostalgia to last June, when Shia pro-
testers took to the streets demanding
reforms. In those days, he says, Iraqis
started remembering former ruler
Abdelkarim Qassim, who toppled Iraq’s
monarchy and was later overthrown
himself by the Ba’athists in 1963.
“A lot of protesters and people were
trying to figure out what went so wrong.
Obviously they don’t actually want the
Ba’athists. So here was this person they
thought, maybe he is the Iraq we could
go back to,” says Mr Mansour.
In Iraqis’ shared longing for dictators,
he sees at least one encouraging sign. “I
think there is a positive here coming out
of a lot of negatives: it’s a move away
from sectarian identity politics to issue
politics, and it’s happening across Iraq,”
he says.
Back in Muqdadiya, Um Muhammed
and Um Hawraa are victims on opposite
sides of the sectarian strife. Um
Muhammed, a Sunni, had a 13-year-old
nephew kidnapped by Shia militants.
She hides her own sons inside the
home, fearing sectarian revenge attacks
in the area, like the Isis bombing that
killed Shia worshippers at a funeral;
among the victims were Um Alaa’s son
and Um Hawraa’s husband, Safaa.
Instead of animosity, both say they are
tired of focusing on sectarianism.
“It’s not about Sunnis or Shia,” Um
Muhammed says. “It’s about having
leaders that will stop this violence — let
people think about living their lives
instead.”
Across town, Um Hawraa agrees. “I
don’t want our loved ones to die mar-
tyrs, and have local committees give us
money and campaign for our cause on
TV. I want a radical solution for Iraq,”
she says. “Our cemeteries are full.”
Monday 11 April 2016 ★ FINANCIAL TIMES 7

FT BIG READ. E-COMMERCE IN CHINA

Flush with venture capital, companies in China’s red-hot online services sector are losing vast sums
in a race to secure customer loyalty and market share. Some see parallels to Silicon Valley circa 1999.
By Charles Clover

B
urning cash has become
alarmingly fashionable
among Chinese internet com-
panies, many of whom have

Renminbi
taken to paying customers
massive subsidies to use their services in
hopes that their competitors go out of
business before they run out of money.
One start-up, Emao.com, which aims
to be an online platform for car dealer-

to burn
ships, has based its entire marketing
strategy around losing money. “We burn
cash from our investors to win the
hearts of car shoppers,” a recent ad says.
Travis Kalanick, chief executive of
Uber, boasted earlier this year that the
ride-sharing app’s China affiliate was
losing more than $1bn a year, in part
because of the subsidies it was paying to
grab market share. A local car hailing
app, Didi Kuaidi, is waging a fierce price
war against Uber in several cities.
Uber’s competitors have made it clear
they will not be outspent. Jean Liu,
Didi’s president, said in September that
“we wouldn’t be here today if it wasn’t
for burning cash”. The company’s chair-
man, Cheng Wei, said the company
spent $4bn last year in what he called
“market fostering”.
Executives from another rival
carhailing app, Yidao Yongche, said last
month that they are “entrapped in a
cash burning vortex”. Zhou Hang, the
chief executive, said recently: “We have
prepared at least Rmb3bn-Rmb5bn of
ammunition for the year.”
“Burning cash” may not sound like a
viable business model, but these young
companies argue that paying customers

84 80percent
Numberof‘offline Growthrateinthe
toonline’internet ‘offlinetoonline’
groupsthatwent sectorinthefirst
bankruptlastyear halfof2015

to use their services is necessary to build
their brands and achieve the scale
needed to compete. This is especially
true in China, where a shift from an
investment-driven to a consumption-
led economy, which the government
insists is under way, makes the goal of
buying Chinese consumers — in hopes
that one day they will buy your wares —
look appealing.
At least some see it this way. Others
claim the Chinese internet fad for burn-
ing cash heralds the top of an internet
bubble. Just as Silicon Valley companies
convinced investors that profits no
longer mattered during the 1990s dot-
com bubble, China’s internet companies
have made a fetish out of losing money.
“A lot of these companies will be for-
gotten when the money runs out,” said
Ma Jihua, founder of Datareal consult-
ing, who estimates that as much as
Rmb50bn a year is being poured into
subsidies aimed at connecting Chinese
consumers via their smartphones to
taxis, massages and car washes.
But he concedes that companies have
little choice. “In this market, if you don’t
burn cash you won’t get market share
which means you won’t get funding,
consequently meaning you won’t stand
a chance against competitors that do
burn.”
‘A big party for consumers’
Funded largely by venture capital and
private equity firms, along with larger —
and profitable — internet companies
like Tencent and Alibaba, most of the
subsidies are going into apps that aim to
be the Uber of massages or the Airbnb of
car washes. These “online to offline”
services, or O2O, are the hottest invest-
ment theme in China’s internet sector.
The potential benefits to the market
leaders help explain why they are so
willing to spend: according to HSBC,
China’s O2O sector is a Rmb10tn market
that is only 4 per cent penetrated, and
grew 80 per cent year on year in the first
half of 2015. HSBC estimates that in five
years the “profit pie” in the industry
would be worth Rmb26bn.
“O2O right now is a big party for con-
sumers,” said Meng Xing, CEO of Helijia,
a health and beauty app, in an interview
last month. “We have no plans to make
profit in the near future, because the
VCs are still offering money.”
Over the past year, his company has
“burnt several hundred million ren-
minbi,” he said, though he has cut back
on subsidies after his main competitor
went out of business. “That’s just how
the Chinese internet is, it’s too popular.
There are so many VC and [private
equity] companies that are willing to
fund these wars.”
Start-ups are busy raising funds from
investors at ever more dizzying valua-
tions, only to plough them back into
subsidies. Recent funding rounds have
valued Didi Kuaidi at $20bn, up from
$15bn last July. Uber China was valued
at $7bn in a January funding round,
while the merger of Meituan and Dian-
ping, the two largest food delivery and
group discount sites, was valued at
$15bn-$17bn in November.
No pressure Meng Xing, below, the
chief executive of health and beauty Law of big numbers Market values soar even as losses mount
app Helijia, says the company has
‘no plans to make a profit in the near
future, because the VCs are still
offering money’
$20bn
DidiKuaidiThelocal
rivaltoUberspent
$4bnlastyearon
‘marketfostering’
Many of these companies do not pub-
lish financial statements, so it is impos-
sible to see what the true scale of cash
burn is. Mr Zhou estimates that
Rmb20bn was burnt by car-hailing apps
like Yidao, Uber and Didi Kuaidi on
rider subsidies in 2015, while Meituan
Dianping, the biggest seller of restau-
rant reservations and cinema tickets in
China, put out a cryptic press statement
in February that said it had “saved food
lovers Rmb58bn” in 2015.
Chinese internet users Bubble territory
who regularly ... Indices rebased
Million
350
Bank online Shanghai exchange
300 IT sector
250
200
150
100
Book travel 50
Shanghai Composite
0
2009 10 11 12 13 14 15 2013 14 15 16
Sources: China Internet Network Information Center; Haver Analytics; Thomson Reuters Datastream
Food scandal restaurants listed by the site had been
Unsavoury revelations closed by health inspectors but still sell
food online for delivery.
about restaurant site The report also found that many of
the restaurants on the platform are not
Last month, TV viewers across at their listed addresses but in dingy
China were given a look at the basements or in apartment buildings
seamier side of the “online to offline” instead — and look nothing like their
industry when state-owned glowing web photos.
CCTV broadcast an investigative Ele.me marketing staff were shown
report on food delivery. helping to register shops that do not
Its focus was on Ele.me, one of the physically exist.
largest food delivery websites in the “There’s always something we
country, valued at $3bn in a can do to make it work,” said one
fundraising round in August. worker who was caught by a hidden
The documentary asserted that camera.
Ele.me does not vet the restaurants The company was fined Rmb120,000
for health permits and that several after the show for safety violations. The
$8bn
UberItsChinaaffiliateis
losingmorethan$1bnayear,
inpartbecauseofthe
subsidiesitpays
Last year, 84 O2O companies went
bankrupt, but the sector also attracted
huge headline investments. Alibaba and
its payment affiliate, Ant Financial,
announced they will each invest
Rmb3bn to develop a food delivery serv-
ice called Koubei, while search engine
Baidu has said it would invest Rmb20bn
in Nuomi, a group discount and food
delivery app.
JP Gan of Qiming, a venture firm that
is funding the Helijia app, says there is
method to the subsidy madness. “Most
sophisticated venture capitalists are
looking at the same model — you buy
users, you buy service providers, you
scale up the platform to 100 cities or
500
200 cities, and you build up a concen-
trated workforce to provide services to
400
the parts of the cities where there are
customers,” he says.
300 But the pitfalls are obvious in a sector
where the providers are fragmented and
200 the services closely resemble each other.
Ken Xu of Gobi Capital, a VC firm in
100 Shanghai, says the problem is that “the
user has no loyalty to anybody in these
0 sectors; they only go for the apps that
have the subsidies. In car-hailing apps,
everybody is starting to realise they are
subsiding the same group of people who
company’s first response was an
indignant post on Weibo, China’s
version of Twitter: “Sorry, we forgot
to pay our protection money to
CCTV.” It was deleted shortly
afterwards.
Zhang Xuhao, Ele.me’s chief
executive, subsequently published a
lengthy letter of apology to
restaurant owners and customers,
vowing to eliminate health hazards
“with determination and speed”.
But the damage has been done.
The site, whose name means “are
you hungry?” in Chinese, is being
referred to by mischievous Weibo
users as “Tuleme”, which means
“have you vomited yet?”
$15-17bn
MeituanandDianping
China’slargestfooddelivery
and discountsitesmerged
butrivalsare emerging
either use Uber or Didi Kuaidi, depend-
ing on who is paying them more.”
‘Last man standing wins’
The O2O model has been subjected to
scrutiny elsewhere, especially in the US,
where many apps that form the basis of
the “gig economy” have failed after ven-
ture funding dried up. That experience
has spawned worries in China about
whether the same will happen once the
era of “VC welfare” ends.
One difference between the US and
China, however, is that the offline shop-
ping and services are so much farther
developed in the US that “business is not
desperate for the internet to make it
more efficient or attractive”, says Dun-
can Clark, head of Beijing technology
consultancy BDA and author of a forth-
coming book on Alibaba. In China,
bricks-and-mortar commerce is often
overpriced or simply dismal, he says, so
investors are betting that the internet
will be the primary way that Chinese
connect to services in the future.
“In the west, we’ve had efficient retail
for a long time,” Clark adds. “In a sense
China is leapfrogging the west.”
Another advantage for China’s high
tech economy is a distinctly low-tech
factor: labour costs. Couriers are 10 to
20 per cent the cost of what they are in
the US.
Hans Tung, a managing partner at
GGV Capital, said that cheap labour and
urban population density in China are
among the main reasons why the O2O
services are economic, compared with
the US, where the sector has struggled.
“In the US there has been uneven
uptake of this so-called gig economy
because consumers are more spread
out, delivery cost is higher, usage fre-
quency is lower,” he says. “It is harder,
besides Uber and Airbnb, for start-ups
in this category.”
In China these factors are all flipped in
favour of the industry. “The costs of
delivering O2O services are lower,
urban population is denser, and there-
fore, the fundamentals of the sector can
be better once there is consolidation
around category leaders,” he says.
But it is clear that subsidies still play a
defining role.
Companies are giving massive dis-
counts to tempt consumers. At Rmb99
on the app goodchef.com, it is cheaper
to invite a chef over to your house to
cook a five-course Sichuan meal than to
go to a restaurant, where the same meal
might set you back Rmb200. Taking an
Uber ride a short distance for Rmb8 is
two-thirds the price of a ride in a
licensed taxi, whose fares are already
held low by government fiat.
A driver for both Uber and Didi, who
gave his name only as Mr Guo, says both
companies pay subsidies that often
amount to two to three times the cost of
the ride.
“Subsidies are an essential part of the
income. Because of the competition, the
fare is very low,” says Mr Gou. “Without
subsidies, the fare is not enough to cover
the gas — it wouldn’t pay off.”
The ultimate viability of this business
model depends on what happens when
the money stops, as it inevitably will, say
analysts.
Last year, there were already signs
that investors have had enough of “cash
burn”. Pressure from investors was
thought to be behind the merger last
year of Didi Dache and Kuaidi Dache,
two reigning taxi apps, who no sooner
had solved their cash burn problem
than Uber appeared on the scene. Later
in the year, Meituan and Dianping
merged, only to be confronted with
search engine Baidu’s competing plat-
form Nuomi.
“That’s the story of the Chinese inter-
net — the last man standing always wins.
And sometimes when there are two last
men standing they will merge,” says Mr
Gan of Qiming.
Brian Viard, an economist who
teaches at the Cheung Kong Graduate
School of Business in Beijing, says plat-
forms like Uber and Airbnb depend on
large numbers of customers and sellers
to achieve a critical mass, which drives
down costs. But he said the fundamental
model of “burning cash” is more about
optimism than economics.
“A lot of these companies have one
thing in common — their perceptions of
the odds of success are higher than they
actually are,” he says.
Additional reporting by Ma Fangjing
C Hot sector An estimated Rmb50bn
($7.7bn) a year is being poured into
subsidies for “online to offline” services
C Get a slice HSBC estimates that in
five years the “profit pie” in China’s
O2O sector would be worth Rmb26bn
C Fickle friends Analysts warn that
burning cash to pay for users does not
increase customer loyalty
8 ★
MONDAY 11 APRIL 2016
Collateral damage from
a delay to US rate rises
A new Plaza accord is improbable, but a weaker dollar has its merits
If policymakers in the eurozone and
Japan hoped to engineer a weaker cur-
rency by their aggressive expansion of
monetary policy, they must be watch-
ing the latest moves in currency mar-
kets with dismay. Despite fresh rounds
of quantitative easing and radical
experiments with negative interest
rates — usually associated with a
weaker exchange rate — the euro and
yen have rallied. Threats of official
intervention from Tokyo did nothing to
prevent the yen climbing last week to a
17-month high against the dollar.
Interpreting the vagaries of foreign
exchange markets is a risky business.
One popular conclusion, though, has
been that these moves betray the help-
lessness of central banks, for whom a
weak currency would be an invaluable
tool. Investors think the European
Central Bank and Bank of Japan are
nearing the limits of monetary policy
and no longer believe they will be able
to revive growth and fight off deflation.
There is some truth in these fears.
The yen’s current level is hardly a ring-
ing endorsement of Abenomics. None-
theless, the perverse behaviour of for-
eign exchange markets does not neces-
sarily reflect despair over the state of
the global economy. Yen and euro
strength is at least in part a conse-
quence of the recent change in stance
by the US Federal Reserve, which has
signalled that it is in no hurry to pro-
ceed with a second rise in interest rates.
This has triggered weakness in the
dollar, now back at last October’s level
against a basket of major currencies.
This makes the job of the ECB and BoJ
harder but will be a great relief to poli-
cymakers in many emerging markets.
It helps oil exporters that were strug-
gling to keep currency pegs in place —
especially as a weaker US currency
tends to support commodity prices. It
takes the pressure off countries that
built up huge volumes of dollar-de-
Sweden sets an example
in corporate governance
The upheaval at the top of companies shows that discipline is working
Some of Sweden’s large companies are
experiencing a bumpy period. Swed-
bank has lost its chairman and chief
executive after a property scandal. The
conduct of Nordea, another bank, in
helping clients with offshore invest-
ments was called “shameful” by Stefan
Lofven, prime minister, after it was
leaked in the Panama Papers.
The incidents follow a boardroom
shake-up in 2013 at TeliaSonera, the
telecoms company, over corruption in
Uzbekistan, and a scandal last year
over the use of corporate jets by execu-
tives and their families at SCA, the for-
estry group. The latter tainted the
investment fund Industrivarden.
The instability has raised questions
about Swedish corporate governance,
often seen as a model compared with
other countries. Its practice of giving
investors such as Industrivarden and
the Wallenberg family’s Investor group
a large say in how companies are over-
seen has been praised for promoting
stability and a long-term focus.
In some ways, the events indicate
that Sweden’s system is working as
intended. Although the reasons for the
ejection of Michael Wolf, Swedbank’s
former chief executive, are not wholly
clear, a loss of investor confidence pro-
duced rapid changes. Swedbank’s nom-
ination committee decided in March
not to reappoint Anders Sundstrom as
chairman.
Sweden’s investors wield control
over the composition of boards
through nomination committees.
Shareholders sit on these committees
with the right to approve — or to dis-
pose of — directors each year. In coun-
tries such as the US and UK, nomina-
tions are made by directors themselves
and shareholders have limited rights to
influence their choice.
Activist shareholders in the US have
pressed for board seats to influence
strategy. This has helped to shake up
nominated debt thanks to the excesses
encouraged by quantitative easing.
Above all, it has already helped
China avert a sharp devaluation in the
renminbi — addressing one of the big-
gest fears that fuelled the turbulence in
global markets at the start of the year.
The Chinese currency has bounced
back from January’s lows, with data
from March showing the first rise in the
country’s foreign exchange reserves in
five months.
One theory among investors has
been that policymakers reached a tacit
understanding on the advantages of a
weaker dollar at February’s G20 meet-
ing — an echo of the 1985 Plaza accord.
This seems improbable, given repeated
pledges to avoid any targeting of
exchange rates. The Fed’s internal
deliberations, however, show a growing
appreciation of the risks that global
financial turbulence and a global slow-
down pose to the US recovery.
Moreover, central banks in advanced
economies need to give increasing
weight to the effects of their actions on
emerging economies. The Interna-
tional Monetary Fund warned this
week that “spillovers” from China to
global financial markets would grow
considerably over the next few years.
The Federal Reserve cannot ignore
the reality that its actions will have glo-
bal consequences. The possibility of a
shock Chinese devaluation or a debt
crisis that might bring down govern-
ments in emerging markets is a more
alarming prospect than the ever-
present risks of sluggish growth in
developed economies.
At present, a policy stance that helps
moderate strength in the dollar is in the
best interests of the US and of the global
economy. Insofar as any conclusion can
be drawn from unpredictable short
term moves in exchange rates, it is that
the eurozone and Japan are suffering
collateral damage.
underperforming companies but can
lead to a single investor with a narrow
agenda gaining excessive influence,
and risks short-termism. The Swedish
system is more strictly balanced while
keeping boards under scrutiny.
Sweden has also benefited from hav-
ing vigorous media, which have
exposed corporate scandals and shone
the spotlight on abuses. Shareholders
have been handed both the informa-
tion and the incentive to take action,
and have responded with alacrity.
No system of corporate governance
is perfect, however, and Sweden’s
places a lot of responsibility in the
hands of a few institutions. The pitfalls
of this were shown in the case of Indus-
trivarden, which along with Investor,
controls more than half the value of the
Swedish stock exchange.
Insiders moved jobs inside Industri-
varden and its portfolio companies:
Sverker Martin-Lof, Industrivarden’s
chairman, had been SCA’s chairman
and chief executive. This encouraged
complacency instead of preventing it.
The risks are exacerbated by the
common practice of core investors
holding voting rights that outweigh
economic interests in companies.
Large investment groups such as
Industrivarden can wield influence
over a swath of companies.
Some companies are starting to
worry that a combination of critical
media and powerful investors is lead-
ing to executives being treated harshly.
Sweden’s ethos of social egalitarianism
mean that there is little tolerance for
excess or misbehaviour by executives
when it emerges publicly.
So far, however, there have been no
clear cases of injustice and investors
have taken their responsibilities seri-
ously. Providing shareholders keep an
eye on their own conduct while taking
an active role in governance, others can
learn from Sweden’s example.
FINANCIAL TIMES
Risks retail investors should not be taking
Sir, As an investor, I have great respect
for Michael Moritz. However, in his
article “Investors, first catch your
unicorn and then hang on it” (April 8),
he seems to suggest that private
technology companies should not
invite mutual funds as investors
because if and when the funds write
down the investment value, the future
of the technology company would
become compromised.
I agree with the conclusion, but not
It’s not too much to ask
that you be a little curious
Sir, Regarding the letter ffrom Jonathan
Lynn (April 7): the Palmetto State is, of
course, South Carolina. The nickname
is a reference to an historical event.
One minute on the internet reveals
that: “On June 28 1776 tthe British fleet’s
attack on Sullivan’s Island was
repulsed. The palmetto-log fort, under
Colonel William Moultrie, withstood
the barrage of British cannons until the
fleet retreated. The Sabal Palmetto
(Inodes palmetto), commonly referred
to as the Cabbage Palmetto, was added
to the national flag of South Carolina,
after it seceded from the Union in
1861.”
Although some of your readers may
think otherwise, history and geography
are found in other places besides
Europe and the Middle East. If we in
the US are expected to keep up with
the shifting political fortunes of Ulster,
Flanders, Wallonia, Kosovo, Moldova,
Slovakia, Catalonia and the Home
Counties. it not too much to ask Mr
Lynn to be a little curious about the
Empire State, the Hoosiers, and the
Land of Lincoln (once known as the
Sucker State).
DW Sutherland
Downers Grove, IL, US
Debate must be about
future immigration policy
Sir, Immigration is one of the key
issues being debated during the
referendum on Britain’s EU
membership. Many people are not sure
about what the referendum result
would mean for the 3m EU migrants
currently in Britain, or for the 1.2m
British citizens living elsewhere in the
EU. A significant number of British
businesses would be disadvantaged by
retrospective changes to their existing
workforce.
In our view, the public debate about
immigration and free movement
should be about future immigration
policy — so that future changes should
not apply retrospectively to those
currently exercising their free
movement rights. Both current EU
migrants in Britain and British
migrants living in other EU member
states should be able to continue to live
and work in those countries. We
believe there are principled, practical
and legal reasons why this would be the
most sensible approach in the event of
a Leave vote — and one that would be
agreed upon by advocates of a broad
range of positions on both immigration
and the EU. Indeed, our understanding
is that the Vienna Convention on
Treaties protects the acquired rights of
individuals in situations of treaty
change.
It would be good for the public
debate about immigration if that
A hidden tale
of tenuous
tenure
Book review
By Jonathan Derbyshire
Evicted:
Poverty and Profit
in the American City
By Matthew Desmond
(Allen Lane, £20/$28)
Letters
because the so-called unicorns and
their highly paid employees (not to
mention their blue-blooded venture
capital firms) will suffer at the hands of
mutual funds, but because
unsuspecting retail investors should
not be taking the kind of risk VCs take.
Besides, as an industry, venture capital
has underperformed public markets as
is clear from a scathing report from the
Kauffman Foundation (investors in
more than 100 VCs).
Palmetto on the South Carolina flag
consensus on this point was made clear
before the referendum campaign. We
are therefore calling on the official
campaigns and leading voices for both
the Remain and the Leave sides, and
the major political parties, to clarify
their position on this matter. The
government should make clear that its
policy would be to protect the rights of
EU citizens living and working in the
UK and to seek reciprocal
arrangements for UK citizens in other
EU countries.
Establishing that broad consensus
ahead of the campaign would give us a
better informed public debate about
immigration in this referendum. It
would not just reassure those who are
directly affected but would also give
the voters who will decide the outcome
a clearer understanding about what is
and what is not at stake on the
referendum ballot paper.
Sunder Katwala
Director, British Future
Simon Walker
Director General, Institute of Directors
Saira Grant
Chief Executive, JCWI
Nazek Ramadan
Director, Migrant Voice
Alp Mehmet
Vice-Chair, Migration Watch
Roger Casale
Founder and CEO, New Europeans
Stephen Booth
Co-Director, Open Europe
David Goodhart
Head of Demography Unit, Policy
Exchange
34 years is not a long time
in the energy business
Sir, Walt Patterson (Letters, April 4) is
correct to point out that the oil-fired
power stations, previously
underemployed because of the high
cost of oil, had the prime role to play
during Britain’s 1984-85 miner’s strike,
which lasted a year less one week.
Satisfying basic electricity needs over
this period was a remarkable
achievement, but it was a success built
“The ’hood is good. There is a lot of
money to be made there.” These are
the words of Sherrena Tarver, a
private landlord in Milwaukee, the
largest city in the Midwestern state of
Wisconsin, and one of the subjects of
the sociologist Matthew Desmond’s
remarkable ethnography of “poverty
and profit” in America.
The field work for this book was
conducted exclusively in Milwaukee
but Desmond insists he is telling a
broad American story. This “fairly
typical midsize metropolitan area” is
representative, he says, of cities
normally left out of the “national
conversation”, which tends to focus
either on success stories, such as San
Francisco or New York, or basket-
cases like Detroit or Newark.
Together with Quentin, her husband
and business partner, Ms Tarver owns
a string of houses and apartments on
Milwaukee’s North Side. Most of her
tenants are black, like her, and most of
them are poor, unlike her. In a good
year, she will earn more than
$100,000. She takes holidays in the
Caribbean and is a habitué of the
Potawatomi casino, across town from
the “ghetto” — a term Desmond’s
subjects use without blushing.
Landlords in areas such as the North
Side are able to charge rents not much
lower than those you would expect to
pay in less distressed neighbourhoods,
and can get away without spending a
great deal on the upkeep of their
properties. It is often easier and
cheaper for them to deal with the
hassle of eviction than to spend
Mutual funds have no business to be
in private technology business, not to
protect those who don’t need any
protection, but to safeguard the
interest of the retired schoolteacher
who has committed her life savings to
an asset class that has done very well
without VC investments, thank you
very much.
Pulak Prasad
Nalanda Capital,
Singapore
on a bedrock of baseload nuclear plant.
At times of peak demand, the oil, gas
and accessible coal facilities were fully
stretched. Given the circumstances, I
am happy to describe (Letters, March
30) the nuclear support as a “crucial”
part of the fight to avoid power cuts.
Now, and more importantly, it is only
34 years until the target date for
reducing CO2 emissions globally by 80
per cent. This is not a long time in the
energy business. The design, formal
approval and construction for big
projects, or numerous little ones, can
take years, but it is important,
particularly for my grandchild’s
generation, that we at least get close to
the target. In theory, world society
could have a good stab at it via existing,
or impending, technologies as
appropriate to different areas, but we
cannot afford to hang around.
Anthony Robson
Cheltenham, Glos, UK
Lebanese Jews were
indeed targeted
Sir, Massoud A Derhally (Letters, April
8) perpetuates the fiction that
Lebanese Jews left as a result of
sectarian strife. In 1948 Jews were
arrested and interned as Zionist spies.
Rioting and antisemitic incidents such
as the 1950 bombing of the Beirut
Alliance Israelite school, killing the
principal, occurred throughout the
1950s and 1960s, culminating in the
flight, in the wake of the 1967 Arab-
Israeli war, of 5,800 Jews out of 6,000.
Hizbollah later kidnapped and
executed 10 Jews.
Although the Jewish community —
which dates back, not to the Spanish
Inquisition, but to 1,000 years before
Islam — was one of 18 whose “rights”
were protected under the Constitution,
Jewish civil servants, and even Jewish
soldiers who had fought for Lebanon,
were dismissed. Jewish schools and
synagogues were requisitioned to
house Palestinian refugees.
The community did enjoy a
temporary spike when Jews fled Syria
and Iraq in the 1950s, but these Jews
were denied Lebanese citizenship. By
any definition, this is today an extinct
community. The restored Maghen
Abraham synagogue in Beirut, no more
than a memorial to the demise of
Lebanese pluralism, has yet to open.
The few remaining Jews are too
terrified to self-identify.
Some 800,000 Jews were driven from
Arab countries: it is disturbing that
their history is being sanitised in order
to absolve Arab countries from the
crime of “ethnic cleansing”.
Yes indeed, Mr Derhally — Jews were
specifically targeted.
Lyn Julius
HARIF — UK Association of Jews from the
Middle East and North Africa,
London SW5, UK
money on maintenance, though when
they do make repairs, there is a
standing army of casual labour willing
to work in return for ready cash.
There are strong incentives, therefore,
for landlords to buy and let property
in the poorest areas.
Many of those who rent from Ms
Tarver — like Arleen, for example, an
unmarried mother of two boys — are
recipients of welfare payments. And
many of them will have experienced at
least one “forced move” — or, as in
Arleen’s case, several. Between 2009
and 2011, Desmond writes, a quarter
of all house moves made by
Milwaukee’s poorest residents were
involuntary: the result of either formal
or informal evictions.
This figure comes from the
Milwaukee Area Renters Study, which
Desmond set up when he was a
graduate student at the University of
Wisconsin. He had noticed that social
scientists and policymakers had “all
but ignored” the phenomenon of
eviction, even though, as he shows in
sometimes numbing detail, it is a
central fact of life for many of
America’s urban poor.
Desmond says that the sociological
study of housing and poverty, at least
as it has been practised in the US in
the past half-century or so, has largely
concentrated on public housing and
housing policy, or on phenomena such
as residential segregation or
gentrification. Researchers have
neglected the private rental market,
despite the fact that most poor people
in American cities do not live in public
Monday 11 April 2016
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
Tax inversions are
adjustments to
competitive reality
Sir, President Barack Obama’s rationale
for the Treasury’s third effort at
stopping corporate inversions is
disingenuous (“M&A deals worth
$370bn torpedoed by Obama
administration”, April 7). Businesses
engage in inversions to adapt to an
uncompetitive, high US corporate tax
rate on worldwide business earnings
and to unite businesses that are more
valuable together than apart.
Inversions are not unpatriotic efforts of
greedy corporations to avoid “fair-
share” taxes, but instead adjustments
to competitive reality.
Congress could dissuade corporate
inversions with tax reform that
creates a level playing field for US
corporations vis-à-vis their foreign
competitors. A good reform would be
to match Ireland’s tax rate and
establish a territorial tax system,
rather than tax worldwide US
corporate earnings. An excellent
reform would be to eliminate the US
corporate income tax since businesses
collect, rather than pay taxes;
eliminating the corporate income tax
would remove a barrier to foreign
earnings repatriation and end the
current US double taxation of
dividends (corporate and individual).
Corporate managers are responsible
for increasing shareholder value
by increasing return on equity,
earnings, and revenue, while
controlling/lowering costs, including
tax costs. The current US tax scheme
reduces after-tax earnings available for
reinvestment to increase earnings and
capital gains and/or increase dividends
to shareholders. A higher total return
to shareholders encourages additional
business investment and facilitates
expansion.
Maintaining the high US corporate
tax rate on worldwide income will not
stop the decline of US business tax
revenue or the movement of business
activity offshore. Instead, foreign
corporations will continue or expand
their purchase of US businesses.
Foreign corporations will earn higher
after-tax earnings due to more
favourable tax rates and the territorial
tax system as they relocate business
activity overseas to serve non-US
markets; attracting more investment
for growth.
George Nastas III
Haslett, MI, US
How learning another
language leads to riches
Sir, Jeremy Paxman may never have
grasped the French language or its
pronunciation, as his compering of
University Challenge attests, but that
is no basis to belittle the French
language and irritably assert the
superiority of the anglophone (“Voilà,
English wins in the battle of global
tongues”, April 8).
The learning of any other world
language brings a richness of culture,
thought and friendship which are some
of life’s greatest gifts.
Paul Taylor
Richmond, Surrey, UK
COMMENT ON FT.COM
Gavyn Davies
The lessons that can be learnt from
recent market turbulence
blogs.ft.com/gavyndavies
housing projects or subsidised
apartments but rent from landlords
like Ms Tarver.
Evicted, then, is an attempt to fill
that gap. But Desmond was
determined not just to crunch the
numbers on the scale of the eviction
epidemic in America — he also wanted
to capture the texture of the chaotic
lives of the denizens of the North Side
and to convey the awful toll taken by
eviction.
In this he has succeeded admirably.
He has a novelist’s eye for the telling
detail and a keen ear for dialogue; and,
by living among the people he writes
about (first on a particularly decrepit
trailer park and then in a ghetto
rooming house), he was able to
transform himself, as he puts it, from
“novelty to perpetual foreigner” or
accepted observer.
Desmond’s book is a significant
literary achievement, as well as a feat
of reporting underpinned by statistical
labour, with details provided in
copious endnotes. It is eloquent, too,
on the harm eviction does — not just
to individuals but also to communities
and to the quality of civic and urban
life.
If it is less convincing in its
prescriptions. Desmond recommends
publicly funded legal services for
tenants at housing courts and an
expansion of the housing voucher
scheme — this is perhaps because the
problems it describes are so severe.
The writer is the FT’s executive comment
editor
Monday 11 April 2016
Build support for global trade from the bottom up
BUSINESS
Lawrence
Summers
S
ince the end of the second
world war, a broad consensus
in support of global economic
integration as a force for
peace and prosperity has
been a pillar of the international order.
From global trade agreements to the EU
project; from the Bretton Woods institu-
tions to the removal of pervasive capital
controls; from expanded foreign direct
investment to increased flows of peo-
ples across borders, the overall direc-
tion has been clear. Driven by domestic
economic progress, by technologies
such as containerised shipping and the
internet that promote integration, and
by legislative changes within and
between nations, the world has grown
smaller and more closely connected.
This has proved more successful than
The ghosts of Chicago 1968
AMERICA
Edward
Luce
W
ho could possibly imag-
ine a repeat of Chicago
1968? In the build-up to
that year’s Democratic
convention Lyndon
Johnson, the US president, dropped out
of the race, assassins’ bullets killed
Bobby Kennedy and Martin Luther
King, and many of America’s inner cities
went up in flames. The past is another
country, as they say. Yet the closer we
get to the 2016 Republican convention
in Cleveland, the more its convulsive
predecessor looms.
Donald Trump has made clear he
would view any outcome to Cleveland
other than his nomination as theft.
Party insiders, however, make clear that
under the rules, which they have yet to
draw up, theft could magically become
legal — indeed desirable. “I think you’d
have riots,” said Mr Trump. Cleveland’s
mayor has placed an order for 2,000 riot
gear suits. It is hard to see how another
nominee could be fixed on the quiet.
The core dispute is differing views on
party democracy. Mr Trump will almost
certainly head into Cleveland in July
with the most delegates. He needs 1,237
to win outright. That prospect receded
last week when Ted Cruz, his only real
competitor, beat him easily in Wiscon-
sin. Even if Mr Trump wins most of the
remaining primaries, including New
York next week, he will be lucky to cross
the magic line. The chances are that he
will head into Cleveland with something
short of a majority and that Mr Cruz will
be some distance behind him.
Almost all delegates are “bound” to
vote for their nominee on the first bal-
lot. After that most are free to do what
they like. Since Mr Trump is terrible at
ground organisation, his delegates are
far more likely to switch to Mr Cruz than
Dangers in denying the Dutch their No vote
europe
Wolfgang
Münchau
I
t is hard to get a positive answer
these days when you ask people a
question about the EU, no matter
what the question is.
The Dutch referendum last week
was about the ratification of the
EU-Ukraine association agreement. The
vote was 61 per cent against, albeit on a
low turnout. But this was not really
about Ukraine. Those who voted Nee —
and I suspect most of those who voted
Ja, too — could not care less about that
country. This was an ill-defined message
of insurrection against the Establish-
ment, whoever that may be.
The EU is used to referendums. In Ire-
could reasonably have been hoped. We
have not seen a war between leading
powers. Global living standards have
risen faster than at any point in history.
And material progress has coincided
with even more rapid progress in com-
bating hunger, empowering women,
promoting literacy and extending life. A
world that will have more smartphones
than adults within a few years is a world
in which more is possible for more peo-
ple than ever before.
Yet a revolt against global integration
is under way in the west. The four lead-
ing candidates for president of the US —
Hillary Clinton, Bernie Sanders, Donald
Trump and Ted Cruz — all oppose the
principal free-trade initiative of this
period: the Trans-Pacific Partnership.
Proposals by Mr Trump, the Republican
frontrunner, to wall off Mexico, abro-
gate trade agreements and persecute
Muslims are far more popular than he
is. The movement for a British exit from
the EU commands substantial support.
Under pressure from an influx of refu-
gees, Europe’s commitment to open
borders appears to be crumbling. In
large part because of political con-
vice versa. One of two things will then
happen: enough votes will shift to Mr
Cruz on the second ballot to make him
the Republican nominee, or both will
again fail to reach a majority. At that
point, a white knight, such as John
Kasich, the relatively moderate gover-
nor of Ohio (Cleveland’s state), or Paul
Ryan, speaker of the House of Repre-
sentatives, would emerge. Out of the
ashes of Cleveland, Hillary Clinton
would suddenly have a competitor.
That, at least, is what party insiders
are plotting. Would it amount to a
boardroom coup? If they secure at least
three-quarters of the delegates between
them, as looks likely, both Mr Trump
and Mr Cruz would think so. Mr
Trump’s people even talk of “treason”. It
is possible they will swallow their pride
and combine on one ticket, with Mr
Cruz agreeing to be Mr Trump’s running
mate. But Mr Cruz would have no power
What are the odds Trump
will accept convention
rules that kill his
chances? Low and falling
to instruct his delegates to vote for Mr
Trump. Many of them would probably
view a Trump nomination with as much
horror as the rest of us.
More likely is that the two men would
be unable to see past their mutual antip-
athy. The Trump-Cruz war of insults has
long since breached politics’ normal
limits. How could Mr Trump buy off
someone he taunts as “Lying Ted”? How
could Mr Cruz play second fiddle to
someone who is “unfit to be president”.
This is where Chicago comes in. In his
book, Miami and the Siege of Chicago,
Norman Mailer described what hap-
pens when a party’s base severs from its
leadership. Inside the embattled hall,
Democratic party brokers fixed the
nomination of Hubert Humphrey, the
unpopular vice-president who backed
the hated Vietnam war. Outside, mayor
Richard Daley’s cops beat up the pro-
land and Denmark, when the answer
was No, governments tended to call a
second referendum after symbolic deal-
making in Brussels back rooms. French
and Dutch No votes in 2005 on the con-
stitutional treaty were essentially
ignored; the document resurfaced two
years later as the Treaty of Lisbon.
I hope the Dutch government takes a
different tack and notifies the European
Council that the agreement should
lapse. Personally, I am strongly in favour
of the agreement as it binds Ukraine
closer to the EU and keeps Russia at bay.
But to ratify it despite a democratic vote
against in one of the EU’s founding
member states is asking for trouble.
In particular, it would allow the Euro-
sceptics in the UK to make the justifia-
ble claim that the EU has no respect for
democratic decisions. The Remain cam-
paign has already been weakened by the
admission last week of Prime Minister
David Cameron that he benefited from a
fund set up in Panama by his father
★ FINANCIAL TIMES
Comment
straints, the growth of the international
financial institutions has not kept pace
with the growth of the global economy.
Certainly a substantial part of what is
behind the resistance is lack of knowl-
edge. No one thanks global trade for the
fact that their pay cheque buys twice as
much in clothes, toys and other goods as
it otherwise would. Those who succeed
as exporters tend to credit their own
The western revolt against
integration is based on the
view that it is a project
carried out by elites for elites
prowess, not international agreements.
So there is certainly a case for our lead-
ers and business communities to edu-
cate people about the benefits of global
integration. But at this late date, with
the trends moving the wrong way, it is
hard to be optimistic about such efforts.
The core of the revolt against global
integration, though, is not ignorance. It
is a sense, not wholly unwarranted, that
Matt Kenyon
because it has damaged the credibility
of the previously most credible of all
Remain proponents in British politics.
The Dutch referendum raises impor-
tant questions about the workings of the
EU. The reforms Mr Cameron secured in
Brussels in February go in the wrong
direction. They will fragment the EU
A form of associate EU
membership would solve
the problem of northern
Eurosceptic states
and render decision-making harder. I
would go as far to say that the upside of a
British exit — from the perspective of
the other member states — is that this
wretched deal would be dead and bur-
ied, and never spoken about in polite
company after the UK vote on June 23.
The Dutch referendum has shown us
it is a project carried out by elites for
elites with little consideration for the
interests of ordinary people — who see
the globalisation agenda as being set by
big companies playing off one country
against another. They read the revela-
tions in the Panama Papers and con-
clude that globalisation offers a fortu-
nate few the opportunities to avoid
taxes and regulations that are not avail-
able to the rest. And they see the disinte-
gration that accompanies global inte-
gration, as communities suffer when big
employers lose to foreign competitors.
What will happen next — and what
should happen? Elites can continue pur-
suing and defending integration, hoping
to win sufficient popular support — but,
on the evidence of the US presidential
campaign and the Brexit debate, this
strategy may have run its course. This is
likely to result in a hiatus in new global
integration and efforts to preserve what
is in place while relying on technology
and growth in the developing world to
drive further integration.
The precedents, notably the period
between the first and second world
wars, are hardly encouraging about
the reforms we really need to be talking
about: how to make the EU more effec-
tive and less prone to blackmail by a
Eurosceptic minority. This is not an
argument about unanimity or qualified
majorities but about how to deal with a
minority of Eurosceptic member states.
The Netherlands should repeal its law
on consultative referendums, which
allows referendums on motions that se-
cure at least 300,000 signatures. If not,
there is a danger Dutch voters will ren-
der the EU inoperative. If an outside
power — say, Russia — wanted to under-
mine EU cohesion in a specific policy
area, it would simply need to give finan-
cial support to Geert Wilders, leader of
the populist Freedom party, which cam-
paigned for a No vote. Moscow is
accused of doing the same for disruptive
parties in other European countries.
The solution to the Dutch problem —
and that of the UK — would be a form of
associate EU membership. This would
allow centralised decision-making
unmanaged globalisation succeeding
with neither a strong underwriter of the
system nor strong global institutions.
Much more promising is this idea: the
promotion of global integration can
become a bottom-up rather than a top-
down project. The emphasis can shift
from promoting integration to manag-
ing its consequences.
This would mean a shift from interna-
tional trade agreements to international
harmonisation agreements, where
issues such as labour rights and environ-
mental protection would take prece-
dence over issues related to empower-
ing foreign producers. It would also
mean devoting as much political capital
to the trillions that escape tax or evade
regulation through cross-border capital
flows as we now devote to trade agree-
ments. And it would mean an emphasis
on the challenges of middle-class par-
ents everywhere who doubt, but still
hope desperately, that their kids can
have better lives than they did.
The writer is Charles W Eliot university
professor at Harvard and a former US
Treasury secretary
testing hippies. “The Democratic Party
had here broken into two before the
eyes of a nation like Melville’s whale
charging right out of the sea,” wrote
Mailer. Of course, the content of the
revolt was light years from today’s
Republican insurgency. The protesters’
platform called for the abolition of
money, disarmament of the police and
full unemployment. “Let the machines
do it,” read their petition.
Their demands were the polar oppo-
site of what Mr Trump’s angry white
male supporters want. Stop Mexicans
from stealing our jobs, would be their
rallying cry. If Mr Trump were denied
the nomination, it is easy to imagine
him directing that anger at the Republi-
can elites. His close friend, Roger Stone,
recently threatened to guide Trump
supporters to anyone who switched
their vote. “We will disclose the hotels
and the room numbers of those dele-
gates who are directly involved in the
steal,” he said. It is easy to see why
Republican leaders would do anything
— even risk provoking violence — to
deny their party’s crown to Mr Trump.
Many would be equally loath to hand it
to Mr Cruz.
In their eyes it is the Republican party,
which is a private body, that selects its
nominee — not the public. It is the
party’s club. They make the rules. The
ultimate battle will thus be over who sits
on the Cleveland rules committee. Each
state nominates one man and one
woman to it. Thirty-one states have a
Republican governor. Very few are fans
of Mr Trump. Ditto for Mr Cruz. Each
governor has a stake in minimising
Republican losses in November. What
are the odds they will push for rules that
would kill Mr Trump’s chances after the
first ballot? Reasonable and rising.
What are the chances Mr Trump would
accept this? Low and falling.
Mailer wrote in 1968 of party captains
hovering “above a directionless void,
there to loose the fearful nauseas of the
century”. His prose defined the sum-
mer. It threatens to do so again.
edward.luce@ft.com
among core members; others would
regain some independence from Brus-
sels. Associated member states would
be allowed to be detached from central
policy areas — the euro, the Schengen
free-travel zone, possibly aspects of the
single market — while remaining mem-
bers of the customs union.
Associate member status would obvi-
ate the need for binary In-Out type ref-
erendums such as the one in the UK.
And it should be possible for associate
members to switch back to full mem-
bership if political preferences change.
This might prove attractive to several
northern member states with Euroscep-
tic electorates. I am not sure whether
the Remain camp in the UK would be
happy with it but, in my view, it would
be better than Britain having to quit the
EU. Associate membership would be a
place where Europe’s most lukewarm
states could seek temporary shelter.
munchau@eurointelligence.com
9
Why cultural
institutions
should accept
oil money
OPINION
Nick
Butler
S
hould oil companies fund cul-
tural institutions? That was
the question raised last week
by a group of celebrities and
academics who called on the
new director of the British Museum to
end BP’s role as one of the museum’s
leading sponsors in the interests of curb-
ing climate change.
The argument is wrong for three
reasons.
First, it is clear that the loser from the
ending of the relationship — and pre-
sumably all other relationships between
cultural institutions and the industry —
would be the museum rather than the
company. If the museum were to turn
away BP’s money, there would be no
shortage of other takers, including
many outside the UK. The campaigners
are not offering to cover the funding gap
and they avoid suggesting what cuts the
museum should make to balance its
books. What is clear is that without the
funding, the museum could not have
put on the great exhibitions, covering
everything from the Vikings to Ancient
Persia, that have drawn in tens of thou-
sands of people in the past decade.
Second, the campaign is wholly nega-
tive. The campaign’s supporters, includ-
ing Greenpeace, seem to have failed to
notice that after December’s Paris con-
ference, the climate debate has moved
on to a more detailed analysis of tech-
nology and regulatory policy.
The issue is serious and deserves
something better than slogans and ges-
tures. It would be more constructive, for
instance, for the campaigners to encour-
age the German government to drop its
support for coal production, to accept
some form of carbon tax in Europe and
to reverse its mindless closure of
nuclear power stations, which serves
only to push up emissions.
Third, there is a whiff of hypocrisy
around the list of signatories, as several
of those who signed the letter work in
institutions partly funded by oil and gas
It is easy to tell others it is
morally right to be a vegan
while you yourself tuck
into a bacon sandwich
company money. It is much easier, I
suppose, to tell others that it is morally
right to be a vegan while you yourself
tuck into a tasty bacon sandwich.
In my view, business sponsorship of
the arts, culture and academic work is a
good thing and I am proud that when I
worked for John Browne — when he was
both chief executive of BP and a trustee
of the museum — I helped in a small way
to build the link between the two insti-
tutions.
What matters are the terms on which
money is given and received. There
should be no interference in the intellec-
tual or artistic judgments of the institu-
tions that accept money. The funding
should be transparent and where possi-
ble the sources should be diverse so that
no institution becomes unduly depend-
ent on any single funder. The relation-
ship should also be long term, reflecting
a serious commitment rather than just a
transaction.
That is the way in which BP, Shell and
all the other serious sponsors of culture
and research operate. It is how the lead-
ing institutions expect and deserve to be
dealt with. In many ways, this makes the
links healthier than the relationship
between the institutions and govern-
ments, which can be domineering,
fickle and politically driven. Just
think of the current damaging rel-
ationship between the UK government
and another great cultural instit-
ution: the BBC.
I do not know how often the signato-
ries of the letter actually go to the British
Museum. When they do they should
look carefully at the collections. Many if
not all include pieces that are them-
selves the products of the long and com-
plex relationship between money,
power and culture. Try, for instance,
Room 40 — the gallery devoted to the
treasures of medieval Europe. Read
John Cherry’s brilliant book on the
medieval goldsmiths. Money, power
and culture have always been inter-
twined. The topic would make for a
great exhibition at the museum. I hope
BP will be allowed to be the sponsor.
The writer is a visiting professor at King’s
College London and a former BP group
vice-president for strategy
10
Moocs platform aims to fill UK’s tech skills gap
Can a Paris-based provider
helping to retrain France’s
unemployed make gains in
a competitive British
market, asks Emma Boyde
M
assive open online
courses, or Moocs as they
are known, might have
started with a gush of
altruism, but the mood
music has changed.
Course providers that produce the
online programmes or host them on dig-
ital platforms are becoming more seri-
ous about revenues, are more aware of
their competition and are making bold
claims about how they can help solve
skills gaps — even in developed coun-
tries.
Among the boldest is OpenClass-
rooms, a Paris-based Mooc provider
that specialises in teaching people how
to code. In April last year it hit the head-
lines when the French president,
François Hollande, announced that the
company would allow registered job-
seekers access to its €20-a-month pre-
mium model, which offers certificates
for satisfactory completion of its free
courses.
The programme went live last
autumn and 20,000 jobseekers have
already registered. “With the sign-ups
we’re seeing, we’re confident that we’ll
have 30,000 people in jobs by 2017,”
says Mathieu Nebra, OpenClassrooms’
co-founder. He says the company has
1.7m registered vocational learners.
Now it is aiming at the UK market.
“We believe OpenClassrooms can help
bridge the UK’s IT skills gap,” says Mr
Nebra. “It won’t happen overnight for
sure”, but he believes his company, with
its focus on vocational skills, has the
right offering.
Mooc providers say OpenClassrooms
will face serious competition, particu-
larly since only a small number of its
more than 1,200 courses are currently
in English.
“It’s a very, very crowded market,”
says Simon Nelson, chief executive of
Mathieu Nebra: the co-founder of OpenClassrooms believes he can help people capitalise on the opportunities in the UK’s digital economy — Magali Delporte
Investment
Learn the basics
HEC Paris has teamed up with Axa
Investment Managers to provide a
Mooc teaching the basics of
investment management. The
course, Investment Management in
an Evolving and Volatile World,
launches today on Coursera and
will run for four weeks requiring up
to three hours of study a week.
Tutors hope participants will
understand what kind of investor
they are, how the most commonly
used liquid assets such as stocks
and bonds work, and how financial
markets operate. The course will be
offered in English with French and
Chinese subtitles.
★ FINANCIAL TIMES
BUSINESS EDUCATION
FutureLearn, the UK’s largest Mooc pro-
vider and an offshoot of the Open Uni-
versity, a distance-learning and
research institution founded in 1969. He
points to incumbents in the UK market
such as General Assembly, a specialist
digital skills provider. And he says
FutureLearn itself, which has more than
3.2m registered learners, is also trying to
widen access to digital skills.
There certainly appears to be strong
demand in the UK for such pro-
grammes. Coursera, the world’s largest
Mooc platform with more than 18m reg-
istered students, says data and compu-
ter science courses are the most popular
among its half a million UK learners —
nearly a third of whom signed up for
courses in this category.
It is also hoping to cash in on demand
and launched what it claims is the first
Mooc-based masters in data science at
the end of March. Tuition fees for the
degree in partnership with the Univer-
sity of Illinois, which Coursera is keen to
promote in the UK, will be $19,200.
With such an array of options, it is
unsurprising that Ian Fordham, chief
executive of Edtech UK, an education
technology accelerator, and co-founder
of The Education Foundation, a UK-
based think-tank, also believes that
OpenClassrooms might have its work
cut out in convincing learners to choose
its courses and to win UK-government
endorsement.
“I suppose part of it is, what kind of
digital skills gap is it trying to tackle?”
‘To say that one product is
going to have the answer
to the UK’s digital skills
gap is naive’
says Mr Fordham, who says there is
almost a saturation of options to learn
how to code. “To say that one product is
going to have the answer to the UK’s dig-
ital skills gap is naive,” he says, adding
that some Mooc providers seem to be
focusing on competition rather than
collaboration.
OpenClassrooms might sound com-
petitive in its plans for expansion but it
is also embracing the spirit of collabora-
tion with its partners. It has attracted
corporate backers including Google,
Microsoft and IBM. Mr Nebra says part-
ner companies want people to learn how
to use their product innovations so
OpenClassrooms helps design their
courses. “They pay us for that,” says Mr
Nebra adding that OpenClassrooms has
just finished working with IBM on a
Mooc that teaches how to use Bluemix, a
cloud platform for building, running
and managing apps.
Monday 11 April 2016
Its business school partners are Paris
School of Business and ICD Interna-
tional Business School, while other aca-
demic partners include the prestigious
École Polytechnique and the Paris Insti-
tute of Political Studies (Sciences Po).
Bruno Martinaud, director of the
masters in technology venture at École
Polytechnique sees Mr Nebra and his
OpenClassrooms co-founder, Pierre
Dubuc, as leading lights in online educa-
tion. His department has paid Open-
Classrooms to help redesign and pro-
duce some of its programmes so they are
suitable for online learning — there are
two tech-based entrepreneurship
courses on the platform and plans to
launch more later this year.
But can Moocs really make a differ-
ence? Rick Levin, chief executive of
Coursera, believes they can. He points
to what he calls “the most definitive
study” on Mooc benefits, which was
published last autumn by a research
team from Coursera, the University of
Pennsylvania and the University of
Washington. More than half of 52,000
respondents said their primary goal had
been to improve their current job or to
find a new one, and of those seeking a
career boost, 87 per cent reported a ben-
efit of some kind. Crucially, researchers
found that less privileged course compl-
eters were most likely to report a tangi-
ble career benefit. The research came
out after Mr Hollande’s announcement,
but could represent an endorsement of
OpenClassrooms’ ambition.
The company is talking to “public
employment services” outside France,
according to its website. While Mr
Nebra would not confirm whether those
approaches included a direct one to the
relevant authorities in the UK, he
believes there is strong demand.
“Why aim at the UK market? It’s been
something that people have been asking
for.”
Mooc Tracker
Visit our directory of free
business courses
FT.com/mooc
Monday 11 April 2016 ★ FINANCIAL TIMES 11

BUSINESS EDUCATION

The business classics that deserve another read Research round-up

As the FT launches its 2016
book award, columnists
select titles worth revisiting
Only a few business books stand the
test of time: the companies they exam-
ine fade away, the economic circum-
stances they analyse change, and the
people they idolise turn out to have
fatal flaws.
Whether a book’s insights will
endure is one criterion for the FT and
McKinsey Business Book of the Year.
To launch the 2016 award, open for
submissions from today, FT column-
ists pick one business book they
believe is worth rereading.
Martin Wolf, chief economic commen-
tator: Parkinson’s Law: The Pursuit of
Progress, by Cyril Northcote Parkinson
(1958)
Why do companies
fail? Part of the
answer is that they
are bureaucracies.
Indeed, they are sup-
posed to be bureauc-
racies. As the late
Nobel-laureate econ-
omist Ronald Coase
pointed out, we have companies
because command-and-control is fre-
quently more efficient than markets.
Broadly, that is the case where the trans-
action costs created by the latter are
higher than the costs of control inherent
in the former.
Parkinson’s law — based on the idea
that “work expands so as to fill the time
available for its completion” — explains
why the solution Coase correctly identi-
fies creates its own difficulties. Bureauc-
racies have malignant tendencies: not
least, noted Parkinson, because “an offi-
cial wants to multiply subordinates, not
rivals” and “officials make work for
each other”.
To these should be added the natural
tendency towards conservatism of all
successful organisations.
These are among the iron laws of
bureaucracy. Managers should read —
and beware.
‘The Rise of the Robots’ won in 2015
— the 2016 award will be announced
on November 22
Which business books do you
think are worth rereading? Join
the columnist debate
ft.com/reread
John Thornhill, innovation editor:
Andrew Carnegie by David Nasaw (2006)
There are two reasons
to read David Nasaw’s
monumental, 800-
plus page biography
of Andrew Carnegie.
First, it provides
fabulous insights into
the practices of one of
the greatest business
geniuses of all time. For good and bad,
every executive can learn something
from the ruthless way Carnegie invested
early in promising technologies, created
and exploited new markets and crushed
the competition.
Second, Nasaw deftly tells the riveting
human tale of how an immigrant Scot-
tish boy became the richest man in the
world and then gave away his vast
wealth, more or less inventing modern
philanthropy. Business history on this
scale is hard to beat.
Gillian Tett, US managing editor: When
Genius Failed: The Rise and Fall of Long-
Term Capital Management by Roger
Lowenstein (2000)
Fifteen years ago, I
spent hours scouring
business classics,
seeking inspiration
for what made a good
business book
“work”, as I was
attempting to write
my own.
One piece of work stood out. When
Genius Failed provides a compelling
account of how Long-Term Capital
Management collapsed, drawing on
painstaking research. It turns this oth-
erwise dry tale of derivatives into a
character-filled drama. But what is
most impressive is Lowenstein’s ability
to take complex topics that matter enor-
mously to the world (but are often
ignored because of their geekiness) and
make them easy to understand.
Better still, Lowenstein’s book was
one of the first to illuminate a crucial
truth that haunts markets today:
namely that seemingly unrelated asset
classes can be correlated if they are
owned by the same people. If you
understand that, you understand the
story of LTCM’s collapse — and many of
the big market mysteries today.
Andrew Hill, management editor: The
Wisdom of Crowds: Why the Many are
Smarter than the Few by James Suro-
wiecki (2004)
The idea that strategy
should be set from
the top down by a few
people, under a
strong CEO or trans-
formational leader,
dominated organisa-
tional thinking at the
turn of the century —
and to a large extent still does.
Surowiecki’s thoughtful and thought-
provoking book challenged this. Draw-
ing on examples from psychology,
behavioural economics and popular
culture, he showed that the combined
views of many independent, diverse
people were often more accurate and
effective than the judgments of small,
consensual groups of experts.
The book’s prescience has been
underlined since, with the emergence of
crowdfunding and crowdsourcing. The
growth of social networks has allowed
movements to be measured and mar-
shalled. It remains a highly readable
manifesto for greater diversity and col-
laboration in decision-making.
ft.com/bookaward
A cheap way
of hiring MBA
graduates
ADAM JONES
MBA students are adept at putting a
value on long-term cash flows. New
research suggests this mentality is also
present in their evaluation of job offers
— particularly if an alumnus of their
business school is doing the recruiting.
Professors from NYU Stern and MIT
Sloan found that students securing a job
through a member of their institution’s
alumni network received a starting
package worth 16 per cent less than
those recruited through more tradi-
tional — and more impersonal — cam-
pus hiring events.
They took that lower offer after being
comforted by the fact it originated from
a former student on the same top pro-
gramme, argues NYU Stern’s Jason
Greenberg, co-author of the research —
to be published in Sociological Science —
with MIT Sloan’s Roberto Fernandez.
“The jobs coming through the alumni
channel are perceived as having signifi-
cantly better growth potential,” he says,
linking this preoccupation with long-
term cash flow to the net present value
calculations that are a staple of MBA
courses. “They are willing to take less
today for a job that has better prospects
in the long run.”
As well as giving a clearer view of what
the job entails, an approach from an
alumnus can offer a reassuring vision of
what the young graduate’s career might
look like in a few years’ time. “You get a
window into your potential future.”
How can recruiters exploit this bond
of trust? Prof Greenberg suggests that
smaller employers who cannot afford
the hoopla of on-campus hiring could
use their MBA graduates to target young
prospects in their old classrooms.
But the strategy may not yield long-
term savings: even net present value
addicts will at some point demand to be
paid the prevailing market rate.
researchroundup@ft.com

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12 ★ FINANCIAL TIMES Monday 11 April 2016

BUSINESS LIFE

Don’t blame
‘
I live in a house full of millennials, graduate job that they were now Most of these graduates have been particular effort to get to know them.
three of whom are having their first thinking of quitting please get in touch? told over and over again by prospective More dangerous still is the gap

millennials if skirmishes with working life. Every

day I study them, marvelling at how
What followed was a diverting
evening hearing the experiences of the
employers that they are extraordinary,
and that their jobs are amazing. The
between the corporate bullshit and the
business itself.

you can’t hang little their early experiences resemble

my own. Sometimes I think it is
because they are different. Sometimes
on to them because the world is different. I don’t
know the right answer — but at least I
know the wrong one when I see it.
Last week I got an email with the
subject line “attracting millennials”
from the dean of Columbia’s School of
Professional Studies. He has been
pondering the question of why so many
of the brightest twentysomethings quit
their fancy jobs, and has come up with
a three-pronged strategy to help
companies hang on to them. It goes like
disenchanted at Unilever, Goldman,
Lloyds, a magic circle law firm, a big PR
company, Sainsbury’s and a couple of
big-name management consultants.
One graduate told me she had just
spent four months working on a deck
of 250 PowerPoint slides no one would
ever read. Another said juniors at her
law firm were expected to nip out to
buy sandwiches for seniors, as if they
were their fags at Eton. A graduate with
a first in English from Oxford
university said her boss insisted on
checking every email she wrote before
it was sent, making her doubt her own
Bain website is typical: “We need
smart, innovative thinkers who aspire
to incredible things. The learning curve
is steep. But the work is exhilarating.
And your career potential is infinite.”
When I was their age no one ever
told me I was amazing or that the
future was infinite, so I wasn’t
especially disappointed to find I wasn’t
and it wasn’t.
By contrast, millennials are being set
up by their employers for an inevitable
fall. At first things go OK — there is the
promise of air miles and the general
swagger of it all. But after a few
A young graduate at a management
consultancy tells me that every day it is
drummed into him by superiors that
Graduates are up the firm always acts in the best
interests of the client. But every week
against the widest he watches the same people trying to
gap between flog further costly services that the
client doesn’t need.
expectations and When the penny drops like this,
reality that the there are only two possible outcomes.
Either you quit — and this particular
professional world millennial has just banked his bonus
has ever seen — and is about to do just that — or you
silence your doubts and get sucked into
and it’s not their the machine.

this: motivate through learning,
market your benefit, invest in HR.
I stared at these puny bullet points
and wondered if this man had ever met
a millennial. That evening I asked my
focus group around the dinner table if
they agreed that the answer to mass
disenchantment was more HR and
Lucy Kellaway training. Much derision followed.
So how ought companies act to keep
Onwork their graduates, I asked them. They
snatched up their devices and
addressed their sprawling
acquaintanceships on social networks
— could anyone who had landed a big
ability to write a sentence.
Almost everyone complained of the
sheer stupidity of the tasks they were
given to do. And then as an
afterthought, they mentioned the
hours. It’s not fun to have worked all
night and then to be given a bollocking
for not having shaved.
What is going on here? Are they
spoilt whingers? Or are these jobs really
intolerable? I think it’s a bit of both:
they are up against the widest gap
between expectations and reality that
the professional world has ever seen —
and it’s not their fault.
months, the boredom hits and they
find they aren’t faced with exhilarating
work. They are filling in spreadsheets
that have no apparent purpose.
Junior jobs were always dull, but I
suspect that they are worse than they
were. In my day there was no
PowerPoint, no spreadsheets, no PR, no
HR, no layer upon layer of non-work to
be doing. Even in my earliest jobs when
I was given boring tasks I realised that
someone had to do them. These
graduates feel part of a machine:
because everyone knows they probably
won’t stay, no one makes any
’
fault This is what employers should be
concentrating on. They should be
trying to distract their new graduates
at the point of maximum disaffection.
The answer isn’t training or more HR —
it is all round better management.
They must stop telling them they have
landed the most amazing job in the
world. Instead they should give them
something interesting to do, or at least
be able to explain why filling in that
particular spreadsheet really matters.
lucy.kellaway@ft.com
Twitter: @lucykellaway

Monday interview Ben Silbermann, Pinterest CEO Working smarter

The little things that lead to

Going global, modestly contentment in the office
EMMA DE VITA

Having a job you find undermine their happiness.

The online scrapbook’s meaningful and enjoyable,
and colleagues you get
co-founder tells Hannah along well with, will probably
Kuchler about the push leave you feeling happier
than most. For others less
overseas as it seeks to grow lucky, the quest to find
into its $11bn valuation happiness at work can be
helped by trying new
actions that can nudge you
en Silbermann screws up his on to the right path.
“Being control-seeking
has been shown to enhance
success but being overly
controlling — and tethering
happiness to others
behaving like you want them
to, or to obsessing about
outcomes unfolding like you
want them to — is a recipe
for misery,” says the

B face as he considers what he

could buy now he has been
officially declared a billion-
aire by Forbes.
As Pinterest co-founder and chief
executive, he helped create the clean,
white online scrapbook where more
than 100m users catalogue their desires.
The 33-year-old has some 750,000 fol-
lowers of his pins on subjects including
art, recipes and a travel bucket list. But
he does not have a “billionaire” pin-
board for the life stage that crept up on
him as Pinterest became one of the
world’s most valuable tech start-ups.
Sitting in a small meeting room below
a poster that reads “Say the hard thing”,
he hesitates. “I want to buy a new cam-
era but I haven’t gotten around to it,” he
says. “I really love photography . . . I
can’t think of anything that’s journalist-
worthy or exciting.”
He is not part of the tech scene in San
Francisco, but the “guys with young kids
scene” — worlds he insists do not over-
lap. His Pinterest boards map his path to
becoming “super grown up”. That jour-
ney went from stints as a consultant and
at Google, to founding the start-up six
years ago, to fathering two young chil-
dren. His pinned pictures include sleek,
wooden designer chairs for his first
apartment without roommates, bou-
quets for his wedding and gifts for his
children.
Pinterest’s $11bn valuation, despite
being only a year into generating reve-
nue, is the result of it being unasham-
edly commercial. Unlike with some
other Silicon Valley “unicorns”, or
highly valued private start-ups, few
have questioned whether a platform
filled with devoted planners of decorat-
ing, camping weekends and celebratory
meals would make money. Advertisers
clamoured to get on the app before it
even began to sell adverts.
But for Mr Silbermann, Pinterest is
more than a fancy, interactive shopping
list. He is modest enough not to prose-
lytise about an innovation revolution
and jet off to see world leaders, unlike
some tech entrepreneurs. But he does
say Pinterest is changing the world by
encouraging people to improve their
lives, one everyday activity at a time.
“What would make me really happy
five years from now was if [Pinterest]
was really this global place where you
could access the whole world’s ideas and
they were just brought to you, totally
personalised to you, every single day.”
Pinterest was founded in 2010 by Mr
Silbermann, Evan Sharp, chief creative
officer, and Paul Sciarra, who left in
2010. Despite its male founders being
keen to create a space for online collect-
ions, based on geeky passions from bugs
to design, it gained an early reputation
as a social network for women shoppers,
and above all else, a wedding empo-
rium, stemming from its first nexus of
committed users in Mr Silbermann’s
native Midwest. But now about a third
of US internet users have Pinterest ac-
counts, according to the Pew Research
Center, and it has a small but growing
male audience encouraged to follow
topics such as “man cave” and “survival
skills”.
Pinterest’s next project is going global.
More than fancy About 45 per cent of its users are out-
interactive side the US and it has offices in the UK,
shopping: Ben France, Germany and Brazil. This shift
Silbermann can be seen at the Pinterest headquar-
compares his ters in SoMa, San Francisco’s start-up
site to Google — centre. The large former warehouse is,
a place where like the app, a temple to clean, white
people come to lines, with sunlight pouring through a
look for things, swimming pool-sized skylight on to a
not people central communal dining room. Like
Thor Swift
the pins on Pinterest, the office displays
projects made by staff. On a previous
visit, a wooden swing built by the legal
team hung from the ceiling; this time, a
board displays the flags of its five target
countries in Lego.
Many social platforms do not target
countries, because adoption soars natu-
rally when users recruit their friends to
chat. But Pinterest needs to make a con-
certed effort country by country
because people come for content, not
conversation. Users want pins in the
right language, with projects suitable for
the local climate or cuisine and shops
they can buy from — and so Pinterest
must encourage content providers on to
the platform first.
Ten researchers travel the world try-
ing to understand how people might use
the site. Mr Silbermann will embark on
a global tour in June, saying he loves to
learn about brand “mainstays” in other
countries, such as UK retailer John
Lewis.
Pinterest rejects the social network
Ron Conway, a prolific angel investor in
Second Silicon Valley, has worked closely with
opinion Ben Silbermann for years, considering
him “one of the top 10 greatest tech
founders on the earth right now”. “Ben
The angel had to build the culture of Pinterest,
investor which somewhat represents him, a much
more humble, understated kind of
culture, a thoughtful culture,” he says.
“If you contrast Pinterest [with]
Twitter, for example, Twitter is known
for having a drama a day. There is no
drama at Pinterest.”
CV
Born July 14 1982, Des Moines, Iowa
Education Bachelor of Arts, Yale
University
Career
2003: Consultant at Corporate Executive
Board
2006: Product specialist at Google,
focused on display advertising
2009: Co-founder and chief executive of
Pinterest
Interests Photography, bowling, start-
ups, entrepreneurship, movies
tag, preferring to compare itself to
Google: a place where people look for
things, not people. “I don’t think the
comparison is meant to be in size but
rather in the spirit of building a tool that
everyone can use to help make their life
better,” he says. “Google, I think of as
really about retrieving information.
Pinterest is really about almost pushing
you ideas that you’ve never seen
before.”
Google dominates the digital advertis-
ing market because it helps advertisers
reach consumers in the minutes before
they purchase. Similarly, retailers and
consumer goods marketers have had a
crush on Pinterest since before it even
launched its first adverts, back in 2014,
keen to reach its user base as they plan
purchases. It is still “early on” for adver-
tising, Pinterest’s only revenue source,
Mr Silbermann says. The site opened up
to all US advertisers only in December
2015. It started selling adverts to
selected partners including Made.com
and Tesco in the UK, its first interna-
tional market, last week.
Pinterest’s big advantage is that
advertisers do not have to interrupt the
audience when they are doing some-
thing else, Mr Silbermann argues.
“Whether it is television or a social
network, [advertisers] feel that their
ads have to pull people’s attention away
because people aren’t there to talk
about new ideas,” he says.
The start-up will need to seduce mar-
keters on a larger scale to grow into its
valuation. Only 10 minutes’ walk away,
Twitter provides a warning of what Pin-
terest could become if user growth fails
to live up to high expectations; its shares
are down by two-thirds in the past year.
Mr Silbermann takes comfort in the fact
Pinterest has followed the latest Silicon
Valley trend: to stay private for longer.
This means he can focus on improving
performance, rather than on how he
communicates about expectations.
The venture capital Pinterest has
raised — a total of $1.3bn from investors
including fund manager Fidelity, Japa-
nese retailer Rakuten and Silicon Valley
VC SV Angel — has enabled him to hire
smart people that can make products,
he says, such as those improving search
and computer vision, a way of under-
standing image data.
Neither he nor Mr Sharp, who went to
architecture school, are software engi-
neers and unlike many tech companies,
Pinterest does not prioritise engineering
above all else. If Mr Silbermann evange-
lises about anything, it is knitting — and
not the woolly kind. “One of the values
of the company is ‘knitting’ and the
premise of it is that if you bring really
diverse disciplines together, you can
produce something better.” Pinterest
employs a star engineer who wanted to
be a cartoonist, a “world class” design
team and former journalists.
This week, the company, including
the nascent international teams, will
gather in San Francisco for the annual
“KnitCon”. Last year, employees gave
classes on wine-tasting, writing screen-
plays and amateur locksmithery.
Mr Silbermann’s eyes light up as he
talks about the event, excited to be at
the back of the class learning, rather
than in the uncomfortable position of
preaching to the company from the
front. “I don’t know, I feel like I talk to
the company too much,” he says.
Neil Pasricha, author of
the new book, The
Happiness Equation, says
that being too busy and
working long hours is a big
obstacle to finding
happiness. While working as
director of leadership
development at Walmart in
Canada, he tried to work
more efficiently and free up
time each day.
Mr Pasricha counted six
ways people could
communicate with him:
email, voicemail, text, in
person, instant messenger
and Facebook. He
permanently set his
voicemail to “vacation
mode”, pointed people to his
email address and deleted
his office instant messaging
software. He erased his
profile on the texting app on
his work phone, and his
Facebook account, and
switched off his email
notifications, and he says he
immediately created an
extra hour each day because
he was left undisturbed to
get on with his work.
Remove all access to
yourself except for one
channel, he says, and “watch
as your productivity spikes,
your days become more
productive, and you create
beautiful space”.
Limiting your colleagues’
access to you can be a good
idea, but Raj Raghunathan,
author of If You’re So Smart,
Why Aren’t You Happy?,
published this month, says
an overcontrolling tendency
is a common way that
successful people
Feedback
In her review last week of
Arianna Huffington’s ‘The
Sleep Revolution’, Lucy
Kellaway revealed her
personal interest in the
subject. Readers joined in
online:
Having a decent
amount of sleep is
about self-
respect,
something
that is not
valued in
work-intense
industries like
law, investment
banking, consulting,
where an ideal candidate
should depreciate his body
and mind over the
organisation’s “business
objectives”. So they sell a
false dream where you need
to delay your right to get a
professor at the University
of Texas McCombs School of
Business. His advice is to try
to control anxious thoughts
and feelings by practising
mindfulness.
Another simple way to
make yourself feel happier
at work is to find a way to
help others within your job,
even committing a random
act of kindness. Prof
Raghunathan suggests
buying a small gift for
someone at work, which will
instantly also boost your
sense of wellbeing.
“Even giving something
small, like a piece of
chocolate, to someone you
like will make you feel good.”
Or you could try bringing in
a cake for your team.
Another tip is to cultivate
a sense of gratitude every
day. Before sleeping, make a
note of three good things
that have happened that
day, says Prof Raghunathan.
“These don’t have to be
big good things, like getting
a raise. Even small good
things like a stranger smiling
at you or your train showing
up as soon as you entered
the platform will do.”
“Happiness comes from
helping others, good
relationships, gratitude and
having a purpose,” says
Henry Stewart, founder of
Happy, a training business.
“It’s possible to have
those while being a law
partner or bank director but
it doesn’t come naturally
with the role.”
workingsmarter@ft.com
proper amount of sleep to
the moment when you’ll
become a partner. Tom
Your mother would have
told you: no TV before going
to bed except on weekends
(let alone in the bedroom).
Pantasilea
I work 70+ hours
a week by
choice and
enjoy it. I don’t
ever take
[sleeping pills,
alcohol or
caffeine]. One
reason for the hours
was that I did a masters in
addition to my full-time
work — the trick was to go
to bed by 9pm and do the
studying from 3am/ 4am/
5am onwards — whenever I
woke up naturally. Horace
Monday 11 April 2016 ★ FINANCIAL TIMES 13

ARTS

A messy, bloody and soul-searing Lucia Pattern Recognition

DA N C E

Sadler’s Wells at The Platform Theatre, London

aaaee
OPERA Louise Levene

Lucia di Lammermoor Lighting design can make or break a con-

Royal Opera House, London
aaaae
Richard Fairman
Time was when sopranos singing Lucia
would hit their top E flats, collect the fee
and go home. Whatever would they say
of what Diana Damrau has to go through
in this production? Given the warnings
the Royal Opera put out in advance,
maybethemanagementwasworriedthe
audience wouldfaint,too.
Donizetti’s opera used to be the play-
ground of great voices — Patti and
Rubini, Melba and Sutherland, Caballé
and Pavarotti, all sang it at Covent Gar-
den. Sadly, those are no more. In their
place what we get is a Lucia di Lammer-
moorforourtimes,arevisionistdramaof
sexual politics that would have left
Donizettiopen-mouthed.
The advisory note issued over Katie
Mitchell’s new production did not pre-
vent some lusty booing at the end. In
essence, Mitchell shows us on stage per-
sonal traumas that a self-respecting
woman in the early 19th century was
meant to keep to herself. It is a messy,
bloody list — nocturnal sex trysts, a knife
murder, a miscarriage, a suicide in the
bath. Do not sayyouwerenot warned.
In all this Damrau is brilliantly con-
vincing. Her rebellious Lucia is a woman
of modern attitudes stuck in a still feudal
Victorian world. Not only that, it is a
world almost exclusively of men. Dam-
rau’s soprano has been getting shrill of
late, but she holds back the volume,
doing her best to vary the sound and cre-
ate singing of inner intensity. Every col-
oratura phraseispitchedto sear the soul.
Charles Castronovo was a good choice
for Edgardo and survives his sex scene
romping among the gravestones with
only a few titters from the audience.
Ludovic Tézier sounds at the peak of his
vocal powers as Enrico and Kwangchul
Youn is a stentorian Raimondo. Taylor
Stanton’s prolonged death scene as
Arturo — part comic, part gruesome — is
pure Hitchcock. Daniel Oren conducts
clumsily. Though cramped and fussily
over-directed, Mitchell’s production
Intensity: ends with an undeniable emotional
Diana Damrau impact. There is just one problem. How
in ‘Lucia di many other sopranos are out there ready
Lammermoor’. tofollowinDamrau’sfootsteps?
Below right:
Stephen Rea in To May 19, roh.org.uk
‘Cyprus Avenue’
Stephen Cummiskey
Helen Murray
T H E AT R E
Cyprus Avenue
Jerwood Theatre Upstairs, Royal Court, London
aaaae
Ian Shuttleworth
There’s a keen irony in Stephen Rea
playing an East Belfast Protestant who is
convinced that his infant granddaughter
isGerryAdams.Duringthe1988-94Brit-
ish “broadcasting ban”, when legislation
forbade broadcast media from transmit-
ting the voices of members of Irish
Republican organisations, Rea was the
go-to guy for voicing-over the Sinn Féin
temporary dance performance. Later
this season Sadler’s Wells will be cele-
brating its key role with Lucy Carter and
Michael Hulls’s No Body, a dancer-free
installation of music and light. Alexan-
der Whitley’s latest piece, Pattern Recog-
nition, which has just premiered at Cen-
tral Saint Martins’ Platform Theatre in
London, doesn’t go quite that far but it is
the first time I’ve seen spotlights get
theirowncurtaincall.
The eight ground-based lighting units,
masterminded by Turkish digital artist
MemoAktenandlightingdesignerJamie
Platt, share the stage with the dancers: a
kilowatt corps de ballet that will echo —
andpredict—theirmovements.
This is not Whitley’s first flirtation
with motion-tracking technology. The
Royal Ballet-trained dancemaker
explored similar territory in 2014’s quin-
tet The Measures Taken but in Pattern Rec-
ognition he narrows the focus to a single
partnership between himself and
SydneyDanceCompany’sNatalieAllen.
The experiment gets off to an uncom-
fortable start (after nearly 10 minutes
of Scanner’s electronic soundtrack and
leader, who once observed, “He does me having generally to be content to wait for a faceful of strobing lights I would have
better than I do.” Not unlike that histori- his all-but-mandatory appearance in the welcomed a go on the thumbscrews) but
cal episode, David Ireland’s play blends next Neil Jordan film. He is a consum- thedancesoonreassertscontrol.
highabsurdityandbloodyearnest. mate actor, and to see him in the The pairwork is combative yet playful
It is not set during the Northern Irish close-up environs of the Upstairs theatre and Whitley’s distinctive writing, while
Troubles but in or around the present is the kind of treat for which some would stringent, is refreshingly free of hyper-
day; Rea’s character Eric is not a Loyalist bepreparedtosellakidney. athletic clichés. As Whitley and Allen
thug but lives on one of the city’s most The whole project is a fortuitous dance, the wheeled spotlights swivel and
prosperous streets. Yet Eric, in conversa- coming-together. The show arrives in glide, and a quartet of black gauze
tion with a psychiatrist, comes out with a London from co-producers the Abbey in screens create shadowplay that hints at
portfolio of reactionary prejudices and Dublin, where Rea began his stage pastselvesandalternativerealities.
stereotypes familiar to me from my own career. Director Vicky Featherstone The 50-minute piece feels over-
upbringingnearby. knows Belfast-born, Glasgow-based extended and Whitley’s thesis — artifi-
There is something comical about actor-turned-playwright Ireland from cial intelligence, the unreliable nature of
Ulster Protestants’ antiquated-cartoon her time running the National Theatre of memory — is not always clear. But
views of the world, until they start to be Scotland. Above all, Cyprus Avenue is pre- in Natalie Allen’s mesmerising
addressed seriously. In some ways, the sented overhead from X, another final solo the lights seem to
most dangerous phase of all is when they Featherstone production in the Court’s stretch and shrink in sympathy,
cease to be accepted unquestioningly main house, which also deals in off- playing against the side wall
but are interrogated by folk terrified of beat but penetrating ways with like fire hoses, tracking her
their own uncertainty. This is the crisis issues of identity and isolation. feet like nervous flashlights:
that strikes Eric — “Without prejudice The laughs stick in your throat, a ravishing synthesis of light
we’re nothing!”, he wails — and which the serious questions lodge in andmovement.
ultimately drives him to extremes even yourhead.
moreappallingthan thosehefears. Tour dates to be announced
We see Rea onstage far too seldom, To May 7, royalcourttheatre.com alexanderwhitley.com

Mesmerising Spall in an attic of broken dreams
THEATRE
The Caretaker
Old Vic, London
aaaae
Sarah Hemming
If only it would stop raining. Then Davies
could get down to Sidcup, get himself
sorted; Aston could build his shed; Mick
could embark on his ambitious schemes
tocreatealuxurypenthouse.
Butitdoesn’t.Itrains,incessantly—on
the roof of Rob Howell’s set, through the
roof, outside the window. So the men are
marooned: trapped in a grotty, junk-
packed attic, wrangling over possession
of it. Matthew Warchus’s fine — if some-
times overstated — production draws
outmanyofthedepthsofHaroldPinter’s
1960 masterpiece, but particularly the
possibility that this tattered room and its
three washed-up inhabitants are a
microcosm: a grim picture of a damp,
end-of-Empire Britain full of empty talk
andbrokendreams.
It is perhaps fitting, then, that Timo-
thy Spall’s performance as Davies, the
old drifter brought home by Aston, fre-
quently calls to mind chancers from the
past: Falstaff, Fagin, vaudevillian
clowns. Spall is mesmerising: a raddled,
ranting windbag with Brillo-pad hair,
filthy long-johns and outsized teeth. He
speaks in torrents, jabbing his finger at
no one, ranging up and down the scale
operatically — arias of fantastical non-
senseandracist,vindictiveparanoia.
It reminds us that Davies is a man with
nothing, who, when asked where he was
born, responds: “What do you mean?”
He fills the space with words. It can
become overly baroque, however, and
while Spall catches both the fear and the
wily nastiness in the character, he over-
plays the comedy. He’s at his best when,
threatened with eviction, he sits
shrunken and shocked on his bed: a
lonely,frightenedanimal.
He’s met with beautifully pitched per-
formances from George MacKay and
Daniel Mays as brothers Mick and Aston.
Where Davies uses words as shields,
MacKay’s Mick, slick, slim and scary as a
Trading Directory
Microcosm:
from far left,
George
MacKay,
Daniel Mays
and Timothy
Spall in ‘The
Caretaker’
Manuel Harlan
blade, deploys them as weapons, sub-
jecting Davies to disorientating rapid-
fire interrogation or stacking up fantasti-
cal descriptions of his property plans. By
contrastMays,asAston,isslowofspeech
and mild in manner. A man as unwanted
as the broken bric-a-brac he collects, he
says little — until the speech in which he
revealshowhebecamesodamaged.
This monologue is the core of War-
chus’s production: delivered with pain
and buried rage by Mays, it describes
how he was robbed of his voice. Two mis-
fits building castles in the air with words;
one fiddling fruitlessly with an old
toaster. Even when it stops raining, none
ofthemisgoinganywhere.
To May 14, oldvictheatre.com

POP
Corinne Bailey Rae
The Tabernacle, London
aaaae
David Cheal
When Corinne Bailey Rae opens her
mouth, the music that emerges flows
with ease and grace, the sound pure, the
phrases immaculately cadenced. She
makes it seem easy, natural.
It’s a voice that has been quiet for
some time. The Yorkshire-born singer
and songwriter was hailed on both sides
of the Atlantic when she first emerged in
2006 with a debut album that went on to
sell 4m copies worldwide. Her work —
and her life — were subsequently turned
upside down by what she referred to
tonight as a “fracture in my life”: the
death of her husband Jason Rae, a saxo-
phonist, in 2008 from an accidental
overdose of methadone and alcohol. A
2010 album, The Sea, which she was
writing at the time of Jason’s death, has
been followed by six years of near-
silence. Now she’s back with an album,
The Heart Speaks in Whispers, and a show-
case gig at this intimate filigree venue.
The world to which she is returning
will doubtless welcome a singer who not
only sings so well, but who also crosses
idioms so effortlessly. At a time when
pop genres and pigeonholes are becom-
ing increasingly fluid, if not actually
superfluous, Bailey Rae’s appeal will be
Soaring: Corinne Bailey Rae — Redferns
broad: tonight, she and her nimble four-
piece band gave us heartfelt old-school
soul (“Are You Here”), breezy guitar pop
(“Put Your Records On”), shuffling soca
(“Tell Me”), sultry jazz-soul reminiscent
of Maria Muldaur (“Green Aphrodis-
iac”), sweet and gentle R&B (“Like a
Star”) and an anthemic affirmational
tune (“Stop Where You Are”) that bore
the hallmark of Coldplay. Mostly she
stood, or sat with a guitar; when she did
move to the music, she jumped up and
Trading Directory
down in her pleated floor-length gown
with the infectious enthusiasm of a
small girl dancing on her bed.
At times her music tended towards a
certain blandness; the sense of uplift
that forms a thread through many of her
songs can become somewhat sugary. But
at her best she was mesmerising. “Hey, I
Won’t Break Your Heart” was a soul sen-
sation full of light and shade, suggesting
that this is her natural habitat: tender
arpeggios from her acoustic guitar, a Trading Directory
slow, swaying three-four rhythm, and Runs Daily
that voice, soaring, cascading. .....................................................................................................................................................................................................................................................................................................................................................................................................................
Classified Business Advertising
UK: +44 20 7873 4000 | Email: acs.emea@ft.com
corinnebaileyrae.com
14 ★ Monday 11 April 2016

Talking Tech Explore more sports

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

How far can a

smartphone’s The Baseline
gimmicks go? Is the Masters won on the back nine?
In 17 of the last 40 Masters golf tournaments, the eventual winner was
behind or tied with nine holes to play. On six other times a thrilling back
nine saw the final margin of victory shrink to one shot or even a playoff
Imagine you make cars and come to
work one day to discover that everyone Eventual winner
in the world has a vehicle that does came from behind Woods extended
everything they need and no one wants his lead on the
Eventual winner’s lead shrank final back 9 Lead/deficit
to replace it. to a single stroke or less
This is not unlike the position in shots
smartphone makers are in today. 12
Billions of people now carry a pocket Other
computer with capabilities that exceed 10
even science fiction’s predictions. And
they’re mostly happy with their Star
Tiger Woods was 8
Trek-like devices.
already 9 ahead
For phonemakers, then, it’s an Nick Faldo raced
with 9 holes to go
“innovate or die” scenario. But the past Greg 6
innovations that everyone in the world Norman on the
wants — vastly better battery life, a back 9
4
perfect signal everywhere and perhaps a
teleportation app — may never be
attainable. 2
So unless you’re Apple, which is
starting to be perceived as a little bit 0
boring, the way ahead in smartphones
has to be solutions in pursuit of
problems people didn’t know they had. -2
Last week’s most-publicised such Faldo had trailed by
solution was Huawei’s sleek P9, with its Now, leaving aside that I know there is Forest team nutmegging Lionel Messi. 2 with 9 holes left -4
twin cameras and arresting co-branding at least one more modular phone due LG, on the other hand, has got things
with Germany’s elite Leica camera out this year (and another surprising (as it has before) a tiny bit wrong — 1980 1990 2000 2010
company. One can only hope for the camera co-branding on the horizon), charmingly, adorably wrong, but wrong
Lead in shots based on scores after all players had played a given hole.
Chinese manufacturer that the the LG G5 is truly interesting and must nonetheless. The modules for the G5, for
There may be slight discrepancies with the scores as they stood at a
consuming masses have heard of Leica. have half a chance of taking off. It is example, are officially called “friends”.
particular point during the action, due to the order in which players teed off
But my 2016-so-far award for crazily packed with features: no one And the part of LG where friends come
inventive problem finding has to go to could ever learn a quarter of its from is “the LG playground”. Source: FT research Graphic by John Burn-Murdoch
LG, South Korea’s estimable, but capabilities. No, no and thrice no. This must be
second-ranking chaebol. Its new flagship Does it, I asked at the launch, almost LG’s ditsy-est linguistic error since
phone — the G5 — launched in London a to be awkward, have the feature I first 2009, when they announced a ROBERT MINTO under par doesn’t make much differ-
tactical day before the P9. And I found saw from Huawei that’s wildly popular “borderless” TV — supposedly with a ence if all leading players are as well.
myself in equal measure impressed and in Asia, where software will “beautify” picture going right to the screen’s edge. Every year during the Masters golf What’s more interesting is whether
amused by it. your face in a selfie — but not the faces of Except that the picture had perfectly someone will remark that the tour- the eventual winner was not leading
Aside from its own twin cameras, LG’s your friends? Of course it does. normal borders, which was quite nament is won (and lost) on the back as they began the back nine holes.
effort has the overarching gimmick of With deference to the fact that North bizarre. nine. But is it true? After three-and- That has happened 17 times in the
being the first modular mobile phone. Korea is a little different from South So where does it all lead? I had lunch a-half 18-hole rounds, can the last last 40 masters — not quite half the
Press a button and half the device’s Korea, I find it hard not to call this, in a last week with Carl Pei, the 26-year-old nine always be the difference time, but enough for the commenta-
insides plop out, revealing space for Korean phone, the Kim Jong Un mode. founder of OnePlus, the cult Chinese between winning and losing? tors to have some justification in say-
extra gadgets to slot in, such as a Bang & LG’s modular idea will be hit or miss. smartphone maker. Some years, it’s clearly the point ing it’s won on the back nine.
Olufsen sound-enhancing music The smallest gimmick can catch on in “What will your phones do in five or where the tournament is lost. In Sometimes, a gripping final round
module and an attachment to convert phones. Just the G5’s trick of sliding its 10 years’ time?” I asked. 2011, after half the final round, Rory can also be about a winner clinging
the phone into a traditional camera. innards out could become iconic in a “I’m not so sure,” Mr Pei said. “Smart McIlroy was 11 under par and the on after their lead shrinks. If we
There is also a virtual reality headset small way. It combines the alarming watches have not succeeded, but I’m tournament leader. By the end, he define a narrow win as one stroke or a
— the best I’ve seen — and a slot-in nature of grandpa popping out his wondering now whether these had dropped seven shots and was 10 play-off, the winner has clung on in
projector is in the works. Then there’s dentures with a sultry, gun-like menace. technologies will be starting to be behind the eventual winner, Charl the back nine another six times in the
the spherical robot, which under your What is cutest about LG’s venture is integrated into the [human] body.” Schwartzel of South Africa. last 40 years. That makes 23 crucial
control from the phone will roll around the challenge to its mighty rival, I can’t wait to see how that prediction In the last 40 Masters events, the back nine holes in 40. The commen-
the house entertaining the cat and Samsung. LG leapfrogging Samsung’s looks in 2026. winner has scored under par for the tators’ cliché is true more than half
censoring what the kids are watching on Jonathan Margolis phones is, in football terms, like a jonathan.margolis@ft.com back nine 30 times. However, scoring the time.
TV (they still watch TV?). defender on my second-tier Nottingham @TheFutureCritic

Today’s temperatures
1010
Abu Dhabi Sun 36 Malta Sun 21
34 Amsterdam Sun 18 Manila Sun 36
Athens Fair 22 Melbourne Cloudy 19
1020 LOW Bangkok Sun 38 Mexico City Sun 30
17 1020 Barcelona Sun 18 Montreal Rain 8
eijing 17 eoul
IGH HIGH 14 LOW Beijing Fair 17 Moscow Cloudy 12
1010 Tokyo Berlin Cloudy 13 Mumbai Sun 34
17 Brussels Sun 19 Munich Sun 17
Islamabad 1020
Shanghai Budapest Cloudy 18 Nairobi Fair 26
31 1010 Buenos Aires Fair 20 New York Cloudy 14
Delhi Chicago Fair 10 Oslo Fair 12
Kolkata 2 Copenhagen Sun 12 Paris Shower 14
aipe
41 25 Dallas Rain 30 Perth Thunder 24
6 Hong Kong Delhi Sun 36 Prague Cloudy 12
Mumbai Hanoi
39 HIGH Dubai Sun 33 Rio Sun 33
Yangon Dublin Rain 10 Rome Sun 20
36
22 38 Ma ila Edinburgh Cloudy 9 San Francisco Cloudy 19
Ban k k 1010 Frankfurt Sun 17 Seoul Sun 17
6 Geneva Fair 18 Shanghai Fair 17
Ho i Minh City Hamburg Sun 14 Singapore Shower 33
Colombo Kuala Brunei Hong Kong Thunder 25 Stockholm Fair 11
33 34 L mpur Istanbul Fair 18 Sydney Fair 24
3 32 Jakarta Thunder 32 Taipei Rain 22
Singapore Johannesburg Sun 24 Tokyo Fair 14
31 Karachi Sun 33 Toronto Drizzle 10
31
Kuala Lumpur Fair 34 Vancouver Cloudy 14
32 Kuwait Windy 31 Venice Sun 17
1010
Lisbon Shower 15 Vienna Cloudy 14
1010 London Rain 14 Washington Cloudy 20
Forecasts by Los Angeles Fair 20 Wellington Fair 20
Wind speed Luxembourg Fair 17 Yangon Sun 39
in KPH Madrid Rain 11 Zurich Sun 20

ACROSS 5 Pink gin ran out, put to use at

MONDAY PRIZE CROSSWORD 1 Untimely errors made by the table (6,4)
No. 15,211 Set by DANTE chairman’s son (12) 6 Just one line from a letter (5)
      
10 Almost a full month before 7 Moved by a little spooning?
bed bears fruit (7) (7)
  11 Warded off quiet raider in 8 Circulated counterfeit
 
disguise (7) US money, but shifted
12 A good man dismissed for responsibility (6,3,4)
drink (5) 9 Could be a circular plug (13)
 
13 Hymn for church service? (3,5) 14 Exultant about Mini repair
15 It raises the spirit (10) being cancelled (10)
 16 It needs a key first for opening 17 Seems upset about flag
 
(4) signals (8)
18 Vagrant who needs nothing 19 A factor in debt-collection (7)
 more than a warm place (4) 21 Sign that has a sting in its tail
   
20 Secretary uses name Susan, I (7)
fancy (10) 23 He takes to his bed – sharpish
22 Instruction for barristers and (5)
  
aircrew (8) 25 State obstruction to an
24 Natural outburst (5) alliance (4)
 26 Just an insect – but a game
one (7) SOLUTION 15,199
 
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marked Monday Prize Crossword 15,211 on the envelope, to the
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Monday 11 April 2016
Pilot project Singapore start-up to trial
autonomous drones — TECHNOLOGY, PAGE 17
Opec’s days as economic force are ‘over’
3 IHS vice-chairman attacks ‘divided’ body 3 Organisation undone by inability to agree on oil crisis, warns Yergin
KIRAN STACEY AND NEIL HUME
Opec’s economic power is broken,
according to the unofficial historian of
the oil industry, who has argued that
the association of oil-exporting coun-
tries has become irretrievably divided
and is unable to reverse the current
slump in crude prices.
Daniel Yergin, whose Pulitzer-prize
winning book The Prize provides a com-
prehensive history of oil and power,
said he believes the association’s eco-
nomic prowess has been undone by its
Debt drive
Investor interest hits a high as
Argentina bond whets appetites
Investor interest in a multibillion-dollar bond offering
from Argentina has reached a zenith as the Latin American
sovereign, sidelined from global debt markets since its
2001 default, launches a five-day marketing tour across
the US and UK, write Eric Platt in New York and Benedict
Mander in Buenos Aires.
The sale, which is expected to eclipse $12bn, is a test of
appetite for emerging market debt after a deep sell-off and
subsequent rally, exacerbated by volatile commodity
prices and fear of a slowdown in global economic activity.
Investors have been told that the offering could reach as
much as $15bn across five, 10 and 30-year tenures. Bankers
have gauged investor demand for an 8 per cent yield on the
10-year notes with pricing on the other maturities
expected to follow in due course, two investors said.
The bonds are likely to be sold the week of April 18, sev-
eral people close to the situation added.
Despite eight defaults since its 1816 independence, the
election of President Mauricio Macri, appointment of mar-
ket friendly officials and deal with holdout creditors have
burnished investor enthusiasm for new Argentine debt.
“The change in direction of policymaking has been radi-
cal,” said Alejo Czerwonko, an emerging markets strategist
at UBS Wealth Management. “It has been a 180 degree
turn. Structural reform in emerging markets is scarce and
you are getting a whole lot of it in Argentina.”
The so-called non-deal roadshow, where bankers will
pitch to investors on Argentina but not market a specific
offering for sale, will begin in London and at the New York
Palace in Manhattan today.
Bankers and Argentine policymakers are also scheduled
to travel to Los Angeles, Boston and Washington, according
to an investor invitation obtained by the Financial Times.
Deutsche Bank, HSBC, JPMorgan and Santander have
been hired to lead the transaction with support from
BBVA, Citi and UBS.
US lawyers head to UK in
push for their know-how
As the long arm of US law enforcement
grows longer, it is driving another
transatlantic push — a mini-exodus of
former US prosecutors to London, in
an effort to capitalise on their
expertise in dealing with American
regulators.
Analysis i PAGE 20
Companies
Alibaba...........................................................18
Apple.........................................................14,17
ArcelorMittal...............................................16
Banca Popolare di Vicenza.................2
Bank of America................................16,22
Baoshan Iron & Steel............................16
Burberry.......................................................22
Cargill..............................................................16
Chase Bank.................................................18
China Fisheries.........................................16
China Shenhua Energy........................16
China Southern Airlines......................16
Citigroup.................................................16,22
Crédit Agricole..........................................18
DNV GL.........................................................17
Dalian Wanda............................................18
Deutsche Börse........................................18
Elsevier..........................................................18
© The Financial Times Limited 2016
★ 15
Model cars What we have learnt from
Tesla’s electric sales — JONATHAN FORD, PAGE 16
Mediaset
deal pits
Vivendi
inability to agree on how to stop the cri- rise and domination of Opec, the 13- worst downturn he has seen in his after sanctions were lifted in January
against Sky
sis. member organisation that has caused career — equivalent only to the slump as part of a nuclear deal with world
In an interview with the Financial sharp swings in the oil price by restrict- in the mid 1980s. powers.
Times, Mr Yergin, who is also vice- ing or raising supplies since it was set up Later this month oil ministers from Mr Yergin added, however, that he RACHEL SANDERSON — MILAN
chairman of data provider IHS, said the in 1960. Qatar, Russia, Saudi Arabia and Vene- expected the price of oil to rebound
Vincent Bolloré’s deal to take a stake in
recent disagreements among Opec But the 69-year-old now argues that zuela will meet in Doha to negotiate a from its current level.
the TV group of Italian media mogul
members have revealed how weak the the current oil slump has exposed the deal to freeze crude oil output at Janu- “A lot of storage is filled up but we’re
and former prime minister Silvio Ber-
organisation now is. organisation’s inability to act in a uni- ary levels. There is no guarantee a deal not at that point where there’s no place
lusconi will cause a wave of consolida-
Mr Yergin said: “The era of Opec as a fied way. will be struck, however. to put the oil and so I think this period
tion in the European media industry
decisive force in the world economy is Since its peak in summer 2014, the Mohammed bin Salman, Saudi Ara- will be the bottom,” he said.
and pit the French corporate raider
over. It is clearly a very divided organi- price of a barrel of crude has dropped bia’s powerful deputy crown prince, “It’s either in the second half of
against Rupert Murdoch, say media
sation.” from $115 to below $40, hurting both oil said earlier this month a deal would this year or early next year that you’d
executives, bankers and analysts.
Mr Yergin’s book, first published in companies and major exporting coun- only happen if Iran also signed up. start to see the market more in
1990, dedicates several chapters to the tries. Mr Yergin described this as the But Iran wants to increase its output balance.” The Vivendi media group in which Mr
Bolloré is the main shareholder agreed
on Friday to take a 3.5 per cent stake in
Mediaset, Italy’s largest private broad-
caster owned by Mr Berlusconi, as well
as taking full control of Mediaset’s pay
TV business.
The deal, drawn up in the past two
months, according to insiders, creates a
southern European media group cover-
ing France, Italy and Spain and is billed
as a powerhouse able to take on pres-
sure from US over-the-tops such as Net-
flix. It also boosts Mr Bolloré’s presence
in Italy where Vivendi is the biggest
shareholder in Telecom Italia.
But in buying Mediaset’s pay-TV busi-
ness the agreement also ratchets up
competition with Mr Murdoch’s Sky
empire which last year united its busi-
ness across the UK, Italy, Germany, Ire-
land and Austria under a single group,
say media industry experts.
The deal should be seen as “the start-
ing gun of a drive for consolidation of
media across Europe”, said one senior
industry source. Bankers on the deal
and media executives also suggested Mr
The election of President Mauricio Macri, above, has helped to burnish investor enthusiasm for new Argentine debt — David Fernandez/EPA Bolloré could snap up other assets on
the back of deal. ITV in the UK and Pro-
SiebenSat.1 are seen as other targets.
Pier Silvio Berlusconi, eldest son of Mr
Argentina's turbulent time in default Berlusconi from his first marriage, indi-
Years when Argentine external debt was in default cated that Mediaset had opted for the
Default Vivendi offer over one from Sky. The
deal implies a value for Mediaset Pre-
mium of €735m, far greater than ana-
lyst estimates of around €500m. It also
allows Mr Berlusconi to step out of the
annual costly battle for pay-TV football
rights which Mediaset, which has suf-
fered from declining advertising during
Italy’s long recession, could ill-afford.
“We had an offer from a satellite rival
of [Mediaset] Premium, but in terms of
strategic opportunity this is the much,
1800 10 20 30 40 50 60 70 80 90 1900 10 20 30 40 50 60 70 80 90 2000 10 15
much better option,” said Mr Berlus-
coni, adding that his father and Mr Bol-
Sources: Moody’s; Reinhart/ Rogoff
loré had “a friendship going back years”.
Latest wave of car safety gadgets set to
cut $20bn from insurance premiums
OLIVER RALPH — LONDON driver is not aware of a situation or is not will be an average of 1.7 of these features
concentrating on driving,” said Bernd per car by 2020.
A new wave of gadgets is set to wipe
Fastenrath of Here. “These systems “First the features come into the pre-
$20bn off car insurance prices globally
help to prevent accidents by changing mium cars, but they are slowly dropping
over the next five years.
lane, for example. into high-volume vehicles,” said Mr Fas-
Growing use of collision warning sys- “For insurers there will be lower costs tenrath, adding that eventually some of
tems, blind spot information and for claims on accidents but there will these features will come as standard.
sophisticated parking assistance will be also be a reduction in premiums for cars The systems will be combined with
so successful in cutting accidents that with these assistance systems.” growing connectivity via devices or
insurers will have to lower their rates, At the moment parking assistance is smartphones that will enable drivers to
claims research from Swiss Re and Here, the most common advanced driver sup- receive weather and traffic information.
a mapping company. port system. But over the next five years Swiss Re and Here say that by 2020
The companies argue that if there was other features, including lane departure more than two-thirds of cars will have
widespread use of the most advanced warnings, traffic sign recognition and some sort of embedded connectivity.
systems, accidents on motorways could automated headlight systems (that “Safety messages about obstacles on
almost halve and incidents on other switch from high beam to low beam the road, traffic conditions and weather
roads could fall by 28 per cent. when another car is approaching) are conditions mean that drivers and cars
“The systems support the driver. expected to become more common. can adjust to those conditions earlier,”
Most accidents happen because the Swiss Re and Here expect that there said Mr Fastenrath.
Companies / Sectors / People
Facebook......................................................17 OnePlus.........................................................14 Swiss Re........................................................15 Sectors Jianlin, Wang..............................................18
General Motors.........................................16 PetroChina...................................................16 Tata Steel........................................................1 Banks.........................................................16,18 Kengeter, Carsten...................................18
Gunvor...........................................................16 Pinterest........................................................12 Telecom Italia.............................................15 Basic Resources.......................................16 Kosterman, Ron........................................18
Huawei...........................................................14 Pro-SiebenSat.1.........................................15 TeliaSonera...................................................8 Financial Services....................................18 Lapasset, Bernard...................................18
ITV....................................................................15 Tesla Motors..............................................16 Financials................................................16,18 Ma, Jack........................................................18
Relx..................................................................18
Interscope Records.................................17 Toyota............................................................16 Media....................................................15,17,18 Mulligan, Mark...........................................17
Rosneft..........................................................16
Investor...........................................................8 Mining............................................................16 Murdoch, Rupert......................................15
SCA....................................................................8 Trafigura.......................................................16
JPMorgan Chase.....................................22 Musk, Elon...................................................16
Samsung.......................................................14 Twitter............................................................12 Retail & Consumer.................................18
Kaisa Group................................................16 Njoroge, Patrick........................................18
Shanshui Cement....................................16 Uber...................................................................7 Support Services.....................................18
LG.....................................................................14 Penny, Gareth............................................16
UniCredit.........................................................2 Technology..................................................17
Leica................................................................14 Sina..................................................................18 Ramirez Martiarena, Gonzalo..........16
Sinopec..........................................................16 Universal Music Group........................17, People
London Stock Exchange.....................18 Sechin, Igor.................................................16
Skadden, Arps, Slate, Meagher & Vevo.................................................................17 Bailey, Christopher.................................22
Louis Dreyfus............................................16 Sherman, Cary...........................................17
Flom.................................................................18 Vitol.................................................................16 Berlusconi, Silvio......................................15
Mediaset........................................................15 Silvio Berlusconi, Pier...........................15
Sky....................................................................15 Vivendi...........................................................15 Bolloré, Vincent........................................15
Minmetals Development.....................16 Taplin, Jonathan.......................................17
Monte dei Paschi di Siena...................2 Sony Music.............................................17,17 Warner Music.............................................17 Dazhong, Zhang......................................18 Taylor, Ian....................................................16
Netflix.............................................................15 Spotify.......................................................17,17 Wells Fargo...........................................16,22 Huggers, Erik.............................................17 Törnqvist, Torbjörn................................16
New World Resources..........................16 SwarmX..........................................................17 YouTube........................................................17 Iovine, Jimmy.............................................17 Weir, Jeremy...............................................16
Nordea.............................................................8 Swedbank.......................................................8 Yunfeng Capital........................................18 Jeroen van der Veer, ...........................18 van Boxmeer, Jean-François............18
Week 15
16 ★ FINANCIAL TIMES Monday 11 April 2016

COMPANIES
INSIDE BUSINESS
Banks
ON MONDAY

US lenders to take hit on energy losses Jonathan

Damage from fall in oil
price expected to weigh
on first-quarter earnings
BEN MCLANNAHAN— NEW YORK
Investors in big US banks are braced for
a fresh round of disclosures on energy
portfolios as regulators turn up the heat
on lenders to take a more critical look at
likely losses.
The Federal Reserve, the Federal
Deposit Insurance Corporation and the
Office of the Comptroller of the Cur-
rency have insisted that banks take a
more comprehensive look at borrowers’
indebtedness — including junior liens
and unsecured debt — when assessing
their own positions.
JPMorgan Chase opens the reporting
season on Wednesday, followed by Bank
of America and Wells Fargo on Thurs-
day and Citigroup on Friday.
record their worst first quarter since
2009, in terms of revenues.
Meanwhile, the trouble in the oil
patch has already inflicted particular
damage on banks exposed to energy
with lenders including JPMorgan, Com-
erica and BB&T pre-announcing hits to
earnings in recent months.
Such concerns are likely to remain in
focus this week, as banks disclose bigger
buffers against losses and discuss the
effects of cuts to customers’ lines of
Ford
per cent during the current redetermi-
nation season.
That is the third big round of reduc-
tions since oil first dipped below $70 a
barrel in November 2014 and is likely to
Tesla needs a flawless
intensify a funding squeeze for the most
cash-strapped borrowers.
drive to put affordable
Haynes and Boone, a Dallas-based law
firm, has tracked 59 bankruptcies
among North American oil and gas pro-
electric dream on road
ducers since the beginning of last year,
involving about $19bn in cumulative

Despite a recent recovery in the price
of oil, which has climbed more than 50
per cent from its February low, the big-
gest four banks by assets in the US are
set to reveal more trouble among bor-
rowers as they report first-quarter earn-
ings this week.
Analysts at Barclays note that results
for January to March are likely to reflect
tougher guidance from a trio of bank
regulators.
“The recent rally in oil prices could credit, which are typically based on the
reduce the severity of the pressure but value of reserves in the ground.
credit migration and reserve builds will As borrowers stop spending on explo-
continue,” said Ken Usdin, analyst at Jef- ration to conserve cash to service debts,
feries in New York. the value of their oil reserves falls, hence
Banks’ share prices have been under the size of their credit lines, which are
pressure since the turn of the year, usually reassessed every six months.
weighed down by fears over slowing glo- One senior executive at a big Wall
bal growth and gyrating capital mar- Street bank, speaking on condition of
kets. Analysts expect banks’ trading and anonymity, said that he expected cuts to
investment banking businesses to reserve-based loans of about 15 to 20
Commodities. FT Global Summit
T
secured and unsecured debt.
50% “All indications suggest many more
Increase in the filings will occur this year,” said Buddy
price of crude oil
since it hit a low in
Clark, a partner at the firm.
February Fears over asset quality will continue
to drag on banks’ share prices, said Fred
$19bn Cannon, global director of equity
research at Keefe, Bruyette & Woods.
Debt resulting from
bankruptcies of oil “I always say, you want to own the
and gas producers banks when they’re making bad loans —
since start of 2015 not when they’re collecting them.”
esla Motors has just stunned the carmaking
world by taking 325,000 orders for its new
Model 3 affordable electric vehicle within
days of unveiling the prototype at its Los
Angeles design studio. That is certainly an
impressive performance — especially from a carmaker
that has sold only 100,000 cars in its entire 13-year history.
But, aside from demonstrating the interest that exists in
Tesla’s undeniably glamorous electric vehicle technology,
what precisely has the US company’s hard driving chief
executive, Elon Musk, achieved?
Let’s start with what he hasn’t done, which is to strike a
very firm contract with those interested parties. A glance
at Tesla’s website shows the relatively loose commitment
they have entered into: paying a $1,000 upfront deposit to
guarantee a slot on a waiting list. But this is not binding,
and can be cancelled if the would-be customer desires.

Producers seek survival strategies
Downturn is forcing change
and, for some businesses, 2016
will be about ‘being boring’
NEIL HUME AND DAVID SHEPPARD
When the world’s most powerful com-
modity traders and executives gather
on the shores of Lake Geneva this week,
they will reflect on a market that has
tested their businesses to the limit.
One year ago at the Financial Times
Commodities Global Summit, some of
the delegates were prepared to bet that
the worst of the commodity downturn
was over. But tomorrow and Wednesday
at the Beau-Rivage Palace Hotel in the
Swiss city of Lausanne, they will debate
how to respond to a prolonged slump
that has dragged oil down to $40 a bar-
rel and copper to its lowest since the
financial crisis.
For the most nimble traders — unen-
cumbered by owning mines or oilfields
— the end of the decade-long commodi-
ties supercycle has unleashed a profita-
ble dealing bonanza, with increased vol-
‘Lower growth and
volatility does mean that
we have to be imaginative’
Gonzalo Ramirez Martiarena
atility and opportunities to help the
most cash-strapped producers deliver
materials to new customers.
Many, like Vitol chief executive Ian
Taylor, Trafigura head Jeremy Weir and
Gunvor’s Torbjörn Törnqvist, can look
back on one of their best trading years
on record. Vitol recorded a 15 per cent
increase in net income, to $1.6bn, in
2015 according to figures seen last week
by the Financial Times.
But others, including the oil produc-
ers, miners and agricultural companies,
have endured an almost uniformly mis-
erable year, thanks to a persistent sup-
ply glut that has weighed on prices.
Last month, Louis Dreyfus Company,
the agricultural merchant, reported its
lowest profits in a decade, prompting
Gonzalo Ramirez Martiarena, its chief
executive, to admit: “We are at a chal-
lenging point in the commodities cycle.”
Years of investment have brought
new production to market just as global
economic activity looks focused on
commodity consumption.
China, the engine of demand over the
past 10 years, is not just slowing but
changing from the world’s factory to a
more consumer-led economy.
To survive in this “lower for longer”
world, many producer companies have
An oil worker moved to pay down debt, sell assets, and
inspects a curtail output. Igor Sechin, the head of
‘nodding Russia’s state-backed oil major, Rosneft,
donkey’ during will open the event tomorrow, days
drilling before big producing nations meet in
operations in an Doha to discuss a production freeze —
oilfield operated an initiative that has captivated oil mar-
by Bashneft, kets for the past two months.
150km from Ufa, In his last major public appearance,
Russia, last Mr Sechin all but ruled out Russian oil
month companies lowering production. How-
Andrey Rudakov/Bloomberg
ever, since then, the collapse in prices
has seen the country edge towards an
agreement to hold its output steady with
Opec kingpin Saudi Arabia.
As a close ally of Russian president
Vladimir Putin, Mr Sechin’s appearance
is likely to be closely watched by traders
hoping to understand the country’s
thinking — and eager to gain access to
barrels from Russia’s biggest producer.
Agricultural traders are also feeling
the pressure of lower prices through
their ownership of producing and
processing assets.
Many say they face difficult condi-
tions due to oversupplied markets and
slowing emerging market growth. “Bar-
ring weather events, we don’t anticipate
a near-term improvement in market
conditions for agriculture,” warned
Cargill, the world’s biggest agricultural
trader, earlier this month. At a number
of companies, the immediate response
has been to streamline operations
through disposals and seek partners
who can help weather the downturn.
Even among the trading houses that
did well last year, the depth and dura-
tion of the commodities downturn is
forcing change.
For some, 2016 will be about focusing
on their core businesses, reducing debt,
eschewing acquisitions and — in the
words of one Swiss-based trading house
— “being boring”.
Others say the focus will be on manag-
ing risks, with Mr Taylor at Vitol warn-
ing last month that low prices “will inev-
itably test some market participants”.
He said: “We believe it is prudent to
continuously review both business lines
and asset exposures.”
That does not mean dealmaking will
stop, though. On Friday, Vitol com-
pleted a $3bn loan-for-oil agreement
with Kazakhstan, which highlights the
opportunities now that crude oil lan-
guishes near $40.
Gunvor, the oil trader, is also looking
to acquire assets, and finds itself cash-
rich, after selling a stake in a major Rus-
sian oil terminal. It recently did a deal to
buy a crude oil refinery in Rotterdam.
One concern shared by all participants
in the industry is the attitude of the
banks, in light of the violent downturn
in prices and increased regulation.
As they strive to meet higher capital
requirements, banks are likely to
increase the cost of the short-term fund-
ing that is the lifeblood of commodities
trading.
“The ECB is inviting banks to think
about the way they apply their models
on commodity trade finance,” says one
trading house executive.
“The result is that its funding is going
to get more costly.”
Traders arriving in Lausanne yester-
day were met by street protests over
their use of Switzerland as a hub for
“speculation”, given the number of com-
panies based in the country, and the lim-
ited transparency over their finances.
Nevertheless, commodity traders
know that they have seen tough times
before and managed to adapt.
As Mr Ramirez of Louis Dreyfus put it:
“Lower growth and volatility does mean
that we have to be imaginative to create
our own tailwinds.”
For full coverage of the fifth FT
Commodities Global Summit, go to
http://www.ft.com/indepth/ft-commodi-
ties-summit
Nor is there any fixed date by which Tesla must actually
come up with a vehicle. While Mr Musk hopes to com-
mence deliveries by the autumn of 2017, he doesn’t have to
meet that deadline if the car is not ready. That, it should be
noted, is a possibility. Tesla’s latest model — the Model X —
was more than two years delayed.
Even the final price is not fixed. Mr Musk may talk about
a $35,000 vehicle, but he is too canny to pin himself down
until he knows how much it will cost to produce one.
That said, the customer’s main protection is Tesla’s own
very public commitment to sell the base model at some-
where around this figure. Jack up the sticker price too
much and the car’s “affordable” tag (and sales) will be lost.
What about using the reservations as a source of capital
to complete the project? After all, its not uncommon for
companies to raise capital from would-be buyers. Property
developers, for instance, sell apartments “off plan” and use
the proceeds to finance their construction. Then there are
crowdfunding platforms, such as Kickstarter. Essentially,
these allow people to pre-buy goods that they like the look
of. Entrepreneurs then go out and see if they can be profit-
ably made.
However, the problem with Tesla’s reservation system is
that it does not deliver much of a capital injection. First,
the $1,000 per head deposit
is so small that it does not
bring in much money. While
Tesla’s
$325m is not exactly loose reservation
change, it is a drop in the
ocean when your capital
system does not
expenditure requirements deliver much of a
run to some $11bn over the
next five years.
capital injection
Second, the pre-orders are
not just cancellable; the deposits that accompany them are
also refundable. So the situation is more akin to the
would-be customers granting Tesla an interest-free over-
draft. Were the development phase to go badly, or prospec-
tive customers to lose enthusiasm, it is quite possible that a
substantial chunk of that $325m could be yanked.
All it might take is a big glitch in the Model 3’s develop-
ment, or the emergence of a sexier vehicle produced by
one of Tesla’s rivals — say a General Motors or Toyota —
which have now been alerted to the possibility of mass
market electric car sales.
And even if it is delivered on time, the Model 3’s maths
might not stack up for some buyers at the $35,000 base
price. Some may be depending on federal subsidies worth
$7,500 to buyers of electric vehicles. But these are cut back
quite sharply after a manufacturer has produced more
than 200,000 cars.
Tesla will also face plenty of practical questions about
building the Model 3. No one can be sure yet whether bat-
tery costs can be reduced sufficiently to make the car’s low
price tag viable. Then there’s the question of whether Mr
Musk can produce the vehicle in the sort of volumes that
his now groaning order book assumes.
But, no matter: that is not the point of what Tesla calls
“the single biggest one week launch of any product ever”.
Its real purpose was to create a stock market “event” to
encourage investors to focus on the scale of the potential
opportunity. With the company still spending heavily on
capex, and unlikely to generate significant profits until
after 2020, it is these people who must ultimately foot the
bill to fulfil Mr Musk’s dream.
Whether they continue to do so remains a question of
faith rather than rational analysis. Tesla’s current market
capitalisation of $32bn is almost three quarters that of
General Motors, which produces 10m cars (including a
competing electric car) against its annual 50,000.
Keeping that stock market spigot open will take not just
excellent products and flawless execution in future. It will
require all of the undoubted showman skills that Mr Musk
has at his command.
jonathan.ford@ft.com

Mining Financials

Czech coal group’s future hangs in balance
HENRY FOY — PRAGUE
Eastern Europe’s largest private coal
miner is teetering on the edge of possi-
ble bankruptcy or nationalisation as
the Czech government deliberates a
rescue plan to prop up one of the coun-
try’s largest companies.
London-listed New World Resources
has until Wednesday to convince credi-
tors it has the political and financial sup-
port from Prague to be able to close
down lossmaking mines and restruc-
ture its business, which has been sav-
aged by the fall in global coal prices over
the past five years.
Czech ministers will meet today to
discuss whether to agree to NWR’s
request for state support for OKD, the
company’s Czech unit, which employs
13,000 people and produces 8m tonnes
of hard coal a year for customers such as
ArcelorMittal, the steelmaker.
“We are at a very critical point,” chair-
man Gareth Penny told the Financial
Times. “If we are given a signal that we
are not supported, then the situation
changes immediately.”
NWR’s creditors last week agreed to
extend a deadline on a credit facility
waiver until Wednesday to give the
company more time to negotiate with
Prague. Mr Penny said they will be
“looking very critically over the next
few days as to whether they should
extend that further.”
Like many coal miners across eastern
Europe and further afield, NWR has
seen its losses spiral as global coal prices
roughly halved since 2011, amid a broad
slump across the commodity markets.
The company, which posted a net loss
of €233.6m last year, has seen its share
price fall more than 99 per cent since its
2008 listing, to 51p.
Prague has been reluctant to provide
taxpayer support to NWR and govern-
ment ministers in recent days have sug-
gested that perhaps bankruptcy or
nationalisation is in the country’s best
interest.
China’s state enterprises shed dollar debt
DON WEINLAND — HONG KONG
Some of China’s biggest state compa-
nies traded US dollar debt for renminbi
in the second half of last year — in an
effort to avoid higher US interest pay-
ments and profit from a depreciation of
the local currency.
Across emerging markets, companies
have sought to ditch US dollar debt since
the US Federal Reserve decided to raise
interest rates in December. Meanwhile,
in China, the weakening of the renminbi
has reversed what many had thought
was a one-way bet on appreciation, and
provided further incentive to be long on
the dollar.
Now, data from Wind Financial Infor-
mation show that mainland-listed com-
panies reduced their offshore dollar
debt by $37bn — about 35 per cent — in
the last six months of 2015. At the same
time, the companies increased their off-
shore dollar deposits by $11bn — a 40
per cent increase.
These moves represent a sharp turn-
round on 2014, by the end of which Chi-
nese companies had accumulated off-
shore dollar debt of $200bn.
State-owned Sinopec led the pack,
paring down its dollar debt by $12.7bn in
the second quarter of last year. China
Southern Airlines drew down $8bn in
dollar debt, equivalent to 28 per cent of
its total assets, according to Wind.
Energy and commodities companies
were the biggest repayers of US dollar
debt, with PetroChina, China Shenhua
Energy, Baoshan Iron & Steel and Min-
metals Development pruning exposure
by a combined $19bn.
Since August, companies have been
converting their dollar exposures into
renminbi through onshore note issu-
ance or refinancing, said Raymond
Yeung, a senior economist at ANZ in
Hong Kong.
“They have been worrying about fur-
ther weakening of yuan as well as the
narrowing yield gap between the two
currencies,” he said.
Monday 11 April 2016
YouTube music terms put labels in a spin
Leading recording groups, unhappy with what they receive from the platform, want a bigger slice of online ad revenues
MATTHEW GARRAHAN — NEW YORK
After more than a decade of falling
album sales and the further loss of reve-
nues to digital piracy, the world’s three
biggest music labels face a new chal-
lenge: a showdown with video site
YouTube — with profound implications
for the global recording industry.
Over the coming months, Universal
Music Group, Sony Music and Warner
Music are each due to negotiate new
licensing agreements with the Google-
owned video platform. None of the
three music companies has commented
in public, but each appears keen to
“reset” its relationship with a service
that has paid them relatively little for
their content.
In terms of the amount of music
streamed on-demand, YouTube has
been a knockout hit — drawing more
regular listeners and viewers than the
likes of Spotify and Apple Music com-
bined. “YouTube is free and is outper-
forming all the other music streaming
services,” says Mark Mulligan, analyst
with Midia Research.
But music executives say their indus-
try has not benefited from YouTube’s
success. “We make peanuts from the
ads,” says one, adding that YouTube
Red, the paid-for service launched last
year, has yet to gain traction.
Of greatest concern is the disparity
between the amount of music listened
to for free on the site and the revenues
those tracks generate from advertising.
Last October, Jimmy Iovine, the head
of Apple Music — and the former chief
executive of Interscope Records — told
the Vanity Fair New Establishment con-
ference that YouTube was responsible
for 40 per cent of all music consumption
but generated only 4 per cent of the
industry’s revenues. “They know that
doesn’t work,” he said. “But do they
care? I have no idea.”
At present, YouTube licenses music
from Vevo, a music site controlled by
Sony and UMG, and has separate deals
with the labels and Warner Music.
Meanwhile, users upload unlicensed
music on an hourly basis.
That has made YouTube the world's
biggest music platform. And it is still
growing: the number of songs streamed
for free on US ad-supported sites, of
which YouTube is by far the biggest,
rose 101 per cent in 2015. By contrast,
associated revenues to the music indus-
try increased by only 31 per cent,
according to the Recording Industry
Association of America (RIAA).
In the US, ad-supported streaming
earned even less for the music industry
last year than sales of vinyl albums —
prompting disbelief among senior
industry figures. “Technology giants
have been enriching themselves at the
expense of the people who actually cre-
ate the music,” claimed Cary Sherman,
the RIAA’s chairman and chief execu-
tive, last week.
For the music industry, the favoured
new format is paid-for subscription
streaming. Paid-for, or premium, tiers
operated by Spotify and Apple Music
generate much better returns for music
labels than advertising-supported serv-
ices. “The monetisation from ad-sup-
ported is less than one-tenth of what we
get from paid-for streaming music,”
explains one senior music executive.
Nevertheless, YouTube insists com-
parisons between ad-supported music
and paid-for subscription services are
“apples to oranges”. In a response to the
RIAA’s annual figures, it pointed to the
more than $3bn it had paid the music
industry. “That number is growing year
on year,” it says.
A person close to YouTube says it gen-
erates money from casual fans who
would never pay for an album or
streaming service, adding: “Only about
Technology
Energy services group to trial robotic drones
JEEVAN VASAGAR — SINGAPORE
A multinational energy services com-
pany is launching a pilot project to
operate drones that can recharge and
transmit data without the use of
human handlers, potentially cutting
one growing cost of the new industry.
Norwegian company DNV GL, one of
the world’s biggest providers of techni-
cal services for the renewable energy
sector, is teaming up with a Singapore-
based start-up to trial autonomous
drones, which are operated by robotic
systems rather than human employees.
As well as inspecting solar panels and
wind turbines for faults, drones are
widely used for surveying in agriculture,
mining and infrastructure projects.
The expansion of this technology has
been accompanied by growth in
demand for human operators; one Japa-
nese drone manufacturer plans to train
10,000 pilots over the next three years.
Out of tune
YouTube insists comparisons between ad-supported music and paid-for subscription services are ‘apples to oranges’ — Neilson Barnard/Getty Images
Music videos are the most popular way to
consume digital music
% who said this was a regular activity, 2015*
0 10 20 30
Watch music videos online/mobile
Stream audio for free
Watch an artist’s YouTube channel
Pay to download tracks
Create streaming playlists
Use free music downloader app
Use YouTube ripper
Use Shazam to identify songs
Download music from P2P
Pay for a music subscription
Sources: MIDiA; Credit Suisse
Sound strategy
Vevo to launch paid
streaming service
With Spotify and Apple
Music battling it out for supremacy
in subscription streaming, is there
space for Vevo to establish itself as
a player? The music video business
— which is majority-owned by the
world’s two largest music
companies, Universal Music Group
and Sony Music — is working on a
paid service, with the aim of
launching it by the end of the year.
Vevo does not have the rights to
Warner Music content, which means
it will probably have to bring the
label on board or come to a
licensing agreement before launch.
Still, Erik Huggers, the former
BBC and Intel manager who was
hired as chief executive last year, is
keen to launch a subscription
offering that would have an
emphasis on original video content,
using documentaries and other
programmes to supplement its
music videos.
With Spotify, Apple Music and
Facebook keen to carry more
music-related video content, and
YouTube recently launching paid
service Red, a Vevo launch comes
at a competitive time for the
streaming industry.
Pulkit Jaiswal, co-founder of
SwarmX, the Singapore company that is
supplying the drone technology to DNV
GL, said: “Industry brought in drones to
complement the workforce but instead
more and more people are being hired
to run them.” He said the company,
which is privately owned, mainly had
military and security clients, but was
seeking to expand into energy services.
The pilot programme, expected to
start this month on a solar farm in Thai-
land, will use robotic base stations
known as hives to control the drones.
Drones equipped with thermal imaging
cameras will be used to search for defec-
tive solar panels.
Instead of relying on a human opera-
tor to replenish their power, the drones
will return to their base stations for
recharging, and to transmit data to a
control centre.
The base station will process the data
before transmission, speeding up the
★ FINANCIAL TIMES 17
COMPANIES
and other inappropriate content,”
points out Jonathan Taplin, director of
the Annenberg Innovation Lab at the
University of Southern California. “It
could use the same tools to screen out
every piece of music that hasn’t been
specifically licensed.”
Under the law, YouTube is protected
by the Digital Millennium Copyright
Act, which gives websites “safe har-
bour” from prosecution if they are
found to be hosting unlicensed content.
This has led several top stars — rang-
ing from Katy Perry and Bootsy Collins
to Barry Manilow — to support cam-
paigners for a reform of the DMCA.
But with reform not likely to happen
imminently, the three big music compa-
nies want better terms from YouTube.
One option is to hold new tracks off
the site for six weeks to compel fans to
either buy them as a download or take
out a paid subscription. Such “window-
ing” of content is commonplace in Hol-
lywood, says Prof Taplin. “It would
make a big difference in music.”
Any tightening of the free music avail-
able on YouTube could also give the
labels leverage in another contentious
debate: how much is offered free on
Spotify, to attract users who might later
be converted into paying subscribers.
Most of the Swedish group’s near-100m
active users listen for free, with roughly
30m paying. The labels — and the likes
of singer Taylor Swift — want to increase
this number and limit the free service
Music is big on YouTube Paid streaming services will dominate industry but Spotify has, so far, resisted.
Most viewed channels for the past 90 days revenues A person close to Spotify says it might
Dec 2015* (%) Sales ($bn) reassess this policy, but only if there was
40 50 Paid streaming less free new music on YouTube.
Digital downloads 20
Meanwhile YouTube is convinced its
Other Physical Forecast model can work for everybody. Plenty
20 Native
YouTubers 15 of people disagree — particularly with
the idea that it does not affect the
45 number of people prepared to pay for
10
music. “You can look for any music that
you are interested in and find it on
35 5 YouTube — that has to harm the paid
services,” says James McQuivey, analyst
Music artist/ with Forrester Research.
label channels 0
“There’s never been a commodity
2008 10 12 14 16 18 20 . . . where giving it away for free didn’t
* Based on 1500 people sampled across the US, UK and France affect people’s willingness to pay.”
20 per cent of people have historically
been willing to pay for music. YouTube
is helping artists and labels monetise the
remaining 80 per cent.”
He adds that the global advertising
market is now worth $200bn, giving
music acts plenty of potential to earn a
bigger piece of the pie. “This is a tremen-
dous opportunity,” he says.
Still, the labels are unhappy they are
not receiving more of the advertising
revenues generated on YouTube. So the
big question is whether they have the
leverage to demand a bigger share.
Music now represents as much as 35
per cent of all YouTube traffic, accord-
ing to Mr Mulligan, a mix of licensed
music videos and tracks illegally
uploaded by users. If the companies that
own the legal rights to the music
threaten to take it elsewhere, or make
YouTube take it down, might the video
site make them an improved deal?
It is not clear that music companies
have the stomach for a fight. Refusing to
grant YouTube licenses for music videos
would not stop illegal uploads. And the
legal responsibility for spotting such
content rests with labels, which must
issue a “takedown notice” to YouTube,
which is obliged to remove the track.
However, as soon as an illegally-up-
loaded version of a track is removed, it
usually quickly appears somewhere
else. “Asking for illegal music to be
taken down is like playing constant
‘whack-a-mole’, says Mr Mulligan.
Critics say YouTube could do much
more to filter out illegal uploads. “It has
the technology to block pornography
analysis by isolating the faulty areas.
Mathias Steck, Asia Pacific manager for
energy and renewables at DNV GL, said:
“DNV is not a specialist in operating
drones and don’t want to be. That’s why
we’ve teamed up with SwarmX.”
Mr Steck said that, depending on the
success of the trial in Southeast Asia, the
company may sign a commercial agree-
ment with SwarmX to make broader use
of its autonomous drone systems.
He said: “Things we have in mind
include inspection of overhead distribu-
tion and transmission lines, and cer-
tainly the oil and gas sector.
“In maritime, you have sniffer drones,
which go behind a ship to find out what
emissions it has. You could think, for
example, of piracy — reconnaissance
flights around a ship.”
Singapore, which introduced regula-
tion last year to provide a clear legal
framework for drone operators, is a hub
for drone services start-ups in Asia.
18 ★ FINANCIAL TIMES Monday 11 April 2016

COMPANIES

Financial services Banks

Deutsche Börse-LSE tie-up hits opposition Finance feels

Added concerns over fate
of merged entity if Britain
votes to leave EU
GUY CHAZAN — BERLIN
Opposition is growing in Germany to
Deutsche Börse’s planned $20bn merger
with London Stock Exchange, amid
mounting concern about the conse-
quences for the merged entity if Britain
votes to leave the EU.
“It’s a problem if the headquarters of
the holding company will be outside the
eurozone and, if Brexit happens, outside
the EU,” said Ulrich Caspar, a member of
parliament in the German state of
Hesse, in which Deutsche Börse’s Frank-
furt headquarters are located. “The
terms are detrimental to the develop-
ment of Frankfurt as a financial centre.”
The deal, unveiled in February, would
create one of the world’s largest
exchange operators in terms of total
income, and one of the biggest for equi-
ties listings. It would also risk manage
more derivatives trades than any other
such entity in the world.
Deutsche Börse shareholders would
own 54.4 per cent of the combined
group, and LSE investors the remainder.
The merged company would be headed
by Deutsche Börse chief executive
Carsten Kengeter, but be based in Lon-
don.
Many in Germany want it headquar-
tered in Frankfurt instead, to reflect
Support services. Knowledge transfer
Deutsche Börse’s larger market capitali-
sation, as well as the city’s status as
home to the European Central Bank and
centre of the European single currency’s
settlement, clearing and payments.
There is also a fear in Germany that
while London is currently one of the
world’s big financial hubs, it could for-
feit that status if, as a result of the June
referendum, Britain quits the EU, leav-
ing the merged company stranded.
“The danger for Frankfurt . . . is that
the headquarters for both stock
exchanges will no longer be in an inter-
national financial centre, but in a city
whose significance worldwide will be
declining,” said Clemens Reif, another
Hesse lawmaker. He, like Mr Caspar, is a
member of Germany’s governing Chris-
tian Democrats, which are also the rul-
ing party in Hesse.
However, some big institutional
investors based in London disagree.
They say that London will remain one of
the world’s leading financial centres
regardless of whether the UK remains in
or outside the EU.
One portfolio manager at a big UK
institution said: “Frankfurt is not going
to challenge London as a financial hub.
‘The company would be
better off headquartered
in London. The Brexit vote
is an irrelevance’
the pressure
The world’s biggest banks, law firms,
accountants and trading houses are in
as Nairobi
London. The company would be better
off headquartered in London. The
moves to halt
Brexit vote is an irrelevance.”
The issue of Frankfurt’s status could
prove decisive for regional authorities
corruption
who will have a big say over whether the
deal goes through. Deutsche Börse is JOHN AGLIONBY — NAIROBI
overseen by the state of Hesse’s stock
Kenya’s central bank governor has
exchange regulator, which will assess
advised the country’s banks to con-
the tie-up.
sider merging or taking on strategic
Hesse’s economics ministry said in
February that the regulator could block
investors as he warned that some insti-
tutions “might feel some heat” from his
the proposed merger if it impaired
tightening regulatory regime.
Frankfurt’s ability to operate a stock
exchange and further develop the busi- Patrick Njoroge’s appeal comes days
ness. after he put the medium-sized Chase
Additional reporting by David Oakley Bank in receivership, the third lender to
suffer such a fate since he became gover-
nor of the Central Bank of Kenya in June
last year. A fourth bank, National Bank
of Kenya, has sent home six executives
pending an internal audit.
On Friday, the national police chief

US lawyers move to London as DoJ extends reach
Transatlantic prosecutions
are stoking demand for more
stateside expertise in the UK
KARA SCANNELL — NEW YORK
As the long arm of US law enforcement
extends further, it is driving another
transatlantic push: a mini-exodus of
former US prosecutors to London, in a
bid to to capitalise on their expertise in
dealing with American regulators.
Last month, Keith Krakaur, a leader
in the Skadden, Arps, Slate, Meagher &
Flom white-collar defence practice,
became one of the latest to make the
move — packing up his home, emptying
his office, and flying with his wife to
England’s capital.
Mr Krakaur started his career as a
prosecutor for the Eastern District of
New York. But, for the past 21 years, the
native New Yorker has been represent-
ing financial institutions and pharma-
ceutical companies from Skadden’s
Times Square office.
His clients — among them the French
bank Crédit Agricole, which sought his
services during its seven-year sanctions
investigation — had been asking him to
relocate across the Atlantic. Finally, he
caved in.
“If you look back eight years ago, I’m
not sure I ever had a single case in my
docket that took me outside the United
States,” he says. “Since that time, the
vast majority of what I’ve done involves
foreign issues of one kind or another,
such as cross-border investigations that
have a US-led legal enforcement compo-
nent.”
Some US law firms are now recognis-
ing a business opportunity in marketing
their US enforcement expertise, at a
time when the Department of Justice
and other authorities are opening inves-
tigations that stretch beyond their home
country’s borders — into everything
from foreign bribery to market manipu-
lation.
Bruno Fontaine, general counsel of
Crédit Agricole’s investment banking
division, says that dealing with US
authorities is “a different world”, mak-
ing a former prosecutor’s experience
critical.
“Being between a rock and a hard
place — between the American regula-
tor and the French board — is not always
the most comfortable position,” Mr Fon-
taine says.
“On certain occasions, I had to repeat
Former assistant what Keith was telling me over the
US attorney phone. I thought, it’s a shame he isn’t
Roger here because I would like my board to
Burlingame, hear it from the American lawyer.”
right, has been Legal practices have posted US law-
representing yers to other countries for many years.
Navinder Singh However, the need for those with law
Sarao, centre, as enforcement experience represents a
he fights small but growing trend — and a new
extradition over twist on the revolving door between the
the ‘flash crash’ government and private sector.
case “Law firms are seeing a longer reach
Peter Nicholls/Reuters
of US law and the implications of that,
and I think they find it beneficial to have
people on the ground who are inti-
mately familiar with US procedures and
experience,” says Jeff Lowe, global prac-
tice leader of law firm recruiter Major,
Lindsey & Africa.
Mr Lowe says he has seen interest
from both law firms and lawyers prepar-
ing to leave the government to relocate
to London or Asia.
Kobre & Kim, a boutique US litigation
firm that often represents individuals
embroiled in high-stakes investigations,
is currently recruiting prosecutors to
work in London, following a similar
move a few years ago in Hong Kong.
Roger Burlingame left his job as an
assistant US attorney for the Eastern
District of New York in 2013 and headed
straight to London for Kobre & Kim.
“The pitch was: you can provide
something unique in London, or you can
be in New York [where] you’re offering
the same thing as dozens of other ex-
AUSAs,” he recalls.
“I thought, this sounds crazy,” he says.
“I’m a New York trial attorney. Being in
New York seems like a key part of the
equation.”
Mr Burlingame certainly had the clas-
sic résumé: he clerked for a US judge
after law school and spent more than a
decade prosecuting big business and
organised criminal syndicates. But he
wondered if he was committing “career
suicide” by going to London.
Nevertheless, he decided to take the
gamble. Now he is so busy — he repre-
sents Navinder Singh Sarao, a UK citizen
‘Law firms charged by the DoJ of allegedly manipu-
lating the market during 2010s “flash
. . . find it crash” — that Kobre is close to recruiting
beneficial to another federal prosecutor who will
have people head straight from the government to
London. (In the flash crash case, Mr
on the Sarao has denied any wrongdoing.)
ground For Mr Burlingame and others mak-
who are ing the move, the timing has proved
right, as US prosecutors appear to have
intimately expanded their jurisdiction beyond
familiar Wall Street to the City.
with US And, so far, the gamble is paying off.
When Mr Burlingame attended an anni-
procedures’ versary party this winter for Peter Bin-
ning — a well-regarded UK solicitor and
former prosecutor with the Crown Pros-
ecution Service and Serious Fraud
Office — he realised he had made head-
way into the London legal scene.
“I walked into the room and 90 per
cent of the people I know in this country
were there,” he recounts. “I thought,
‘Wow! I am now as embedded here as I
am in the white-collar community in
New York’.”
issued arrest warrants for six National
Bank managers and two Chase execu-
tives for alleged “unethical conduct”.
Henry Rotich, Kenya’s finance minis-
ter, said on Friday that the financial sec-
tor in east Africa’s largest economy was
“very sound”. But over the past few
months, there has been a noticeable
flight to quality as depositors move their
funds away from the smaller of Kenya’s
42 banks. The largest seven institutions
control some 80 per cent of the market.
Mr Njoroge agreed with Mr Rotich
that the financial sector was still “sta-
ble” and “resilient”. But the governor,
who has taken a much tougher
approach to bank supervision than his
predecessors, issued a thinly-veiled
warning that banks should consider
2016 as a “transitional year”.
“The idea is that banks will
strengthen their business models to be
more resilient and so they will be more
stable,” he told a press conference. “No
one is an island and so some of the banks
might feel some heat from this [tighter
supervision].
“This will inevitably require some
consolidation. That means some banks
need to look for strategic investors.”
Habil Olaka, the chief executive of the
Kenyan Bankers Association, said the
immediate “pressure is starting to sub-
side” but agreed that “things are becom-
ing much tougher, that is apparent”.
Mr Njoroge insisted that the circum-
stances at Chase, National Bank and the
two other banks placed in receivership
— Dubai Bank of Kenya and Imperial
Bank — were “isolated”. But analysts
believe banks will have little choice but
to heed the governor’s advice as the
effects of his stricter regime are felt.
Adesoji Solanke, of Renaissance Capi-
tal, said the sector was “very lopsided”.
“Of course they need some consolida-
tion, there are just too many banks,” he
said. “There’s a lot of cleaning up going
on and I think there will be more but it
should result in a stronger banking sec-
tor eventually.”
Aly-Khan Satchu, a Nairobi-based
independent analyst, said he thought
Mr Njoroge and Mr Rotich were trying
to “make consolidation an orderly proc-
ess” but warned they might not be able
to control it if depositors panicked if
more banks became mired in improper
conduct. “Trying to hold back market
forces is like standing in the way of a
freight train,” he said.
Bob Collymore, chief executive of
Safaricom, and a vocal proponent of
fighting private sector corruption, wel-
comed the moves. “It’s about bloody
time,” he said. “We have so much opac-
ity in this economy that the poor guy
who is trying to run a small business
hasn’t had a hope in hell’s chance.”

Media Retail & consumer

Journalists oppose Elsevier name change
DUNCAN ROBINSON — BRUSSELS
An attempt by FTSE 100 publisher
Relx to strip the Dutch magazine Else-
vier of its name has triggered a back-
lash from the publication’s journalists
and an unlikely coalition of Dutch busi-
ness grandees.
Relx — formerly known as Reed Elsevier
— agreed to sell current affairs weekly
Elsevier earlier this year on condition
that the new owners change its name to
avoid confusion with its scientific jour-
nal division of the same name.
The magazine Elsevier has been a sta-
ple of Dutch public life for more than a
century. It was founded in 1891 and is
the most popular current affairs maga-
zine in the Netherlands, selling nearly
90,000 copies per week.
Prominent Dutch figures such
as Jean-François van Boxmeer, chief
executive, and chairman of Heineken,
Jeroen van der Veer, a former chief
executive of Shell, and Wim Pijbes,
boss of Amsterdam’s Rijksmuseum,
are backing journalists at Elsevier
to keep its name. They have
accused Relx of a “cavalier attitude”. “It
may be small fry in the overall scheme
of things for Relx, but for the Nether-
lands the title Elsevier has enormous
resonance,” said the group in an open
letter, signed by 100 people in a per-
sonal capacity.
Although Relx and journalists at the
title are still in negotiations, an organi-
‘They do not have any
good arguments for
doing this’
Ron Kosterman, Elsevier magazine
sation supporting the magazine’s cam-
paign to keep the name has started fun-
draising in case the argument has to be
settled in court.
Ron Kosterman, chairman of the
magazine’s editorial board, said: “We
have had it for 125 years now — and we
don’t want to lose it. We have no exam-
ples of successful rebranding in history,
which is why we are afraid.”
Relx is concerned about the potential
reputational risk that losing control of
the Elsevier masthead might have on its
scientific journal division of the same
name.
This division, which publishes
the medical journal the Lancet along-
side 2,500 other titles, accounts for a
third of the group’s annual sales of
roughly £6bn.
These concerns were dismissed by the
plan’s opponents. “There has never
been confusion in the past,” said Mr
Kosterman. “Why would it happen in
the future? They do not have any good
arguments for doing this.”
If the sale for an undisclosed sum to
Dutch media group New Skool Media
falls through, then Relx will still push on
with changing the title of the magazine.
A spokesperson for Relx said: “We con-
tinue to be in a consultation period.”
The Anglo-Dutch company is one of
the world’s biggest publishers. Over the
past decade, it has sold off dozens of
general interest titles, instead focusing
on specialised outlets, such as the Bank-
ers’ Almanac, which acts as a database
for the financial industry.
Alibaba chief puts rugby on front foot in China
TOM MITCHELL — BEIJING
Jack Ma, chairman of Alibaba and a rel-
atively recent investor in China’s surg-
ing football industry, is now hoping to
promote another English import after
signing a development and sponsor-
ship deal with World Rugby.
Under the agreement, announced yes-
terday, the ecommerce group’s sports
division said it would make a “long-
term multimillion US dollar investment
in the development of rugby in China”.
“We encourage young people to join
rugby to cultivate the spirit of being
strong-willed, aggressive, acquisitive
and unified,” said Zhang Dazhong, chief
executive of Alisports.
The agreement was announced at the
annual Hong Kong Sevens, the world’s
premier seven-a-side tournament that
is as famous for its off-pitch parties as it
is for the on-pitch action.
In exchange for its support of the
sport, Alisports will be given exclusive
rugby broadcast rights for its internet
platform. The partners will also collabo-
rate to help China host more interna-
tional rugby events. Alisports was estab-
lished by Alibaba in September with
minority investors including Sina and
Yunfeng Capital, a private investment
vehicle controlled by Mr Ma.
“This deal will ensure an unprece-
dented platform for rugby to reach,
engage and inspire new participants
across China,” said Bernard Lapasset,
World Rugby chairman.
Alibaba, the most famous of China’s
“big three” internet groups, is one of the
country’s most acquisitive companies,
using its cash to snap up assets as
diverse as Chinese football clubs and
Jack Ma’s investment deal was made
public at the Hong Kong Sevens
Hong Kong newspapers. It owns 38 per
cent of Evergrande Taobao FC, a suc-
cessful club based in the southern city
of Guangzhou.
Recent investments by Chinese
billionaires such as Mr Ma and Wang
Jianlin, chairman of the Dalian Wanda
property and entertainment group,
have begun to change the face of inter-
national football.
Mr Ma, 51, is China’s second-richest
man, with a fortune estimated at
$22.7bn, according to the annual Hurun
report. He was the country’s richest
man until he was surpassed by Mr
Wang, whose wealth grew by more than
50 per cent last year. In 2015, Mr Wang
paid $52m for a 20 per cent stake in
Spain’s Atlético Madrid.
But it is far from certain that Chinese
tycoons such as Mr Ma can do for rugby
what they have done for football, given
its much lower profile in the world’s
most populous country.
China has been represented only spo-
radically at the Hong Kong Sevens, by
teams that have often been beaten heav-
ily by other minnows.
Monday 11 April 2016 ★ FINANCIAL TIMES 19
20 ★ FINANCIAL TIMES Monday 11 April 2016

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.21%
0.28% 0.05% 0.20% 1.10% 1.23% 0.46% 0.51% 0.68% 0.264% 0.071% 0.473% 0.124% 5.55%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Mar 09 - Apr 08 Index All World Mar 09 - Apr 08 Index All World Mar 09 - Apr 08 Index All World Mar 09 - Apr 08 Index All World Mar 09 - Apr 08 Index All World Mar 09 - Apr 08 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,047.60 16,642.20
6,204.41
13,392.90 13,396.73 6,125.44 9,692.82 9,622.26
1,989.26 15,821.52 1,969.33 1,972.05
Day 0.28% Month 2.29% Year -1.38% Day 0.98% Month 0.64% Year -11.94% Day 1.10% Month 1.27% Year -10.59% Day 0.96% Month -0.73% Year -20.05% Day 0.46% Month -6.44% Year -19.44% Day -0.09% Month 0.72% Year -3.66%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
4,850.69 8,766.90
1,335.40 8,427.60 20,370.40
44,859.49 1,304.21 20,159.72
4,674.38 44,492.50 2,810.43 2,808.32
Day 0.05% Month 3.03% Year -1.21% Day -0.43% Month 0.80% Year -0.27% Day 1.23% Month -1.95% Year -19.12% Day 1.62% Month -4.09% Year -28.16% Day 0.51% Month 1.05% Year -19.41% Day -0.19% Month -0.54% Year -18.97%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai

17,576.96 50,292.93 2,984.96

49,638.68 18,017.56
4,350.35 17,504.62 24,673.84
4,303.12 24,659.23
17,000.36 2,804.73
Day 0.20% Month 2.95% Year -1.67% Day 3.67% Month 2.43% Year -6.28% Day 1.35% Month -3.13% Year -16.46% Day 4.08% Month -2.85% Year -25.76% Day -0.78% Month 3.02% Year -24.65% Day -0.05% Month 0.11% Year -13.48%

Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous
Argentina Merval 12221.87 11864.15 Cyprus CSE M&P Gen 67.92 67.74 Italy FTSE Italia All-Share 19165.63 18488.77 Philippines Manila Comp 7247.20 7232.97 Taiwan Weighted Pr 8541.50 8490.25 Cross-Border DJ Global Titans ($) 231.74 230.70
Australia All Ordinaries 5018.00 5042.30 Czech RepublicPX 899.33 884.30 FTSE Italia Mid Cap 30822.06 30506.80 Poland Wig 47556.03 47231.36 Thailand Bangkok SET 1369.64 1356.69 Euro Stoxx 50 (Eur) 2911.98 2871.57
S&P/ASX 200 4937.60 4964.10 Denmark OMXC Copenahgen 20 956.91 954.93 FTSE MIB 17504.62 16818.25 Portugal PSI 20 4858.42 4761.77 Turkey BIST 100 81164.66 81511.27 Euronext 100 ID 848.91 838.90
S&P/ASX 200 Res 2406.00 2411.20 Egypt EGX 30 7478.74 7459.84 Japan 2nd Section 4239.41 4197.63 PSI General 2394.73 2351.78 UAE Abu Dhabi General Index 4351.70 4299.35 FTSE 4Good Global ($) 5208.28 5178.94
Austria ATX 2241.17 2210.18 Estonia OMX Tallinn 964.99 964.42 Nikkei 225 15821.52 15749.84 Romania BET Index 6728.47 6720.61 UK FT 30 2761.50 2740.80 FTSE All World 260.13 258.37
Belgium BEL 20 3354.06 3319.99 Finland OMX Helsinki General 7831.37 7664.18 S&P Topix 150 1048.64 1035.98 Russia Micex Index 1877.27 1858.85 FTSE 100 6204.41 6136.89 FTSE E300 1304.21 1288.42
BEL Mid 5613.86 5611.60 France CAC 40 4303.12 4245.91 Topix 1287.69 1272.64 RTX 879.07 859.24 FTSE 4Good UK 5588.62 5534.19 FTSE Eurotop 100 2553.48 2522.81
Brazil Bovespa 50292.93 48513.10 SBF 120 3415.02 3369.64 Jordan Amman SE 2150.93 2147.42 Saudi-Arabia TADAWUL All Share Index 6258.11 6213.58 FTSE All Share 3405.37 3370.98 FTSE Global 100 ($) 1286.86 1281.25
Canada S&P/TSX 60 784.58 776.51 Germany M-DAX 20170.51 19902.68 Kenya NSE 20 4054.29 4030.00 Singapore FTSE Straits Times 2808.32 2813.59 FTSE techMARK 100 3885.01 3858.11 FTSE Gold Min ($) 1387.12 1345.27
S&P/TSX Comp 13396.73 13266.44 TecDAX 1635.29 1620.39 Kuwait KSX Market Index 5230.44 5204.30 Slovakia SAX 320.50 320.50 USA DJ Composite 6195.22 6164.13 FTSE Latibex Top (Eur) 2500.70 2379.40
S&P/TSX Met & Min 410.39 387.10 XETRA Dax 9622.26 9530.62 Latvia OMX Riga 613.15 614.61 Slovenia SBI TOP 722.84 723.26 DJ Industrial 17576.96 17541.96 FTSE Multinationals ($) 1458.82 1469.84
Chile IGPA Gen 19256.07 19092.70 Greece Athens Gen 561.61 554.50 Lithuania OMX Vilnius 495.24 494.69 South Africa FTSE/JSE All Share 51424.48 51146.82 DJ Transport 7736.28 7652.83 FTSE World ($) 461.43 458.26
China FTSE A200 8154.40 8220.07 FTSE/ASE 20 153.18 150.93 Luxembourg LuxX 1364.46 1351.55 FTSE/JSE Res 20 27907.90 27625.50 DJ Utilities 660.11 656.44 FTSEurofirst 100 (Eur) 3636.27 3588.64
FTSE B35 10208.54 10310.34 Hong Kong Hang Seng 20370.40 20266.05 Malaysia FTSE Bursa KLCI 1718.40 1724.29 FTSE/JSE Top 40 45252.36 45024.17 Nasdaq 100 4474.93 4475.29 FTSEurofirst 80 (Eur) 3954.98 3900.79
Shanghai A 3123.71 3148.26 HS China Enterprise 8704.81 8647.33 Mexico IPC 44859.49 45052.16 South Korea Kospi 1972.05 1973.89 Nasdaq Cmp 4850.69 4848.37 MSCI ACWI Fr ($) 391.18 393.71
Shanghai B 373.33 376.26 HSCC Red Chip 3700.25 3677.39 Morocco MASI 9534.58 9569.70 Kospi 200 241.77 242.29 NYSE Comp 10119.68 10045.15 MSCI All World ($) 1621.66 1633.41
Shanghai Comp 2984.96 3008.42 Hungary Bux 26513.45 26397.46 Netherlands AEX 434.16 428.73 Spain IBEX 35 8427.60 8292.90 S&P 500 2047.60 2041.91 MSCI Europe (Eur) 1303.10 1313.12
Shenzhen A 2002.32 2018.99 India BSE Sensex 24673.84 24685.42 AEX All Share 668.06 659.59 Sri Lanka CSE All Share 6275.62 6230.19 Wilshire 5000 21224.32 21238.05 MSCI Pacific ($) 2155.69 2123.68
Shenzhen B 1134.41 1143.42 S&P CNX 500 6346.65 6329.80 New Zealand NZX 50 6730.28 6755.23 Sweden OMX Stockholm 30 1364.94 1330.84 Venezuela IBC 15441.76 15052.64 S&P Euro (Eur) 1326.92 1308.41
Colombia COLCAP 1316.11 1321.50 Indonesia Jakarta Comp 4846.70 4867.29 Nigeria SE All Share 25369.52 25455.69 OMX Stockholm AS 482.60 472.48 Vietnam VNI 572.34 571.60 S&P Europe 350 (Eur) 1337.48 1321.40
Croatia CROBEX 1661.17 1668.29 Ireland ISEQ Overall 6189.25 6157.08 Norway Oslo All Share 615.58 609.05 Switzerland SMI Index 7817.55 7761.35 S&P Global 1200 ($) 1807.05 1793.33
Israel Tel Aviv 100 12.50 12.50 Pakistan KSE 100 33967.54 33967.54 Stoxx 50 (Eur) 2751.89 2724.36
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Apr 08 %Chg %Chg Apr 08 %Chg %Chg Apr 08 %Chg %Chg Apr 08 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Facebook Class A 53.6 110.63 -3.01 Vodafone 126.0 227.50 4.75 Unicredit 406.5 3.07 0.27 Toyota Motor 911.7 5467.00 43.00 Marks And Spencer 444.20 9.1 -1.8 Ocado 349.00 16.1 14.8 Hochschild Mining 113.00 24.9 134.2 Industrial Metals 916.92 4.6 28.2
Apple 25.6 108.66 0.12 Glaxosmithkline 115.7 1471.50 -3.00 Nestle N 404.3 66.73 0.55 Fast Retailing Co., 625.9 26610.00 -3880.00 United Utilities 957.50 6.3 2.4 Electrocomponents 273.00 12.3 14.6 Moss Bros 106.00 14.0 4.4 Pharmaceuticals & Biotech. 12632.92 4.3 -2.2
Tesla Motors 18.3 250.07 -7.13 Bp 111.3 350.35 11.05 Intesa Sanpaolo 348.4 2.29 0.13 Softbank . 505.6 5691.00 87.00 Randgold Resources Ld 6635.00 6.1 60.1 Centamin 100.10 11.4 55.4 Hostelworld 270.00 11.6 23.9 Mobile Telecommunications 5201.16 3.4 2.0
Pfizer 17.1 32.50 -0.26 Sabmiller 108.0 4217.00 -9.50 Iberdrola 335.4 5.81 0.06 Seven & I Holdings Co., 458.5 4655.00 166.00 Astrazeneca 4146.50 5.4 -10.2 Card Factory 355.00 8.8 -2.8 Mothercare 194.00 9.4 -11.8 Oil & Gas Producers 6227.94 3.2 10.1
Allergan 16.9 236.00 -5.00 Royal Dutch Shell 105.5 1740.50 64.50 Telefonica 323.0 9.31 0.20 Mitsubishi Ufj Fin,. 452.5 490.10 7.30 Severn Trent 2239.00 4.5 2.8 Vectura 175.00 8.2 -0.6 Wireless 199.00 7.6 -18.8 Gas Water & Multiutilities 6249.51 2.9 5.2
Amazon.com 15.4 594.60 3.17 Astrazeneca 104.2 4146.50 -21.00 Bbva 291.6 5.41 0.08 Sumitomo Mitsui Fin,. 380.7 3200.00 79.00 Sainsbury (j) 288.50 4.3 11.5 Aa 280.90 7.9 -10.5 Skyepharma 471.75 7.3 19.4 Real Estate Investment Trusts 3073.63 2.0 -5.7
Microsoft 12.1 54.42 -0.04 British American Tobacco 102.0 4190.00 41.50 Daimler Ag Na O.n. 289.3 59.52 0.00 Mizuho Fin,. 376.8 156.70 3.80 Shire 4250.00 4.1 -9.5 Nmc Health 1132.00 6.4 34.7 Gem Diamonds 125.00 7.1 -4.9 Tobacco 50584.68 1.8 9.8
Hospira 11.8 89.95 -0.01 Hsbc Holdings 89.7 418.00 1.85 Total 270.2 40.01 1.43 Sony 333.7 2858.50 38.50 Glaxosmithkline 1471.50 4.0 7.2 Paypoint 804.50 6.1 -12.7 Int Biotechnology Trust 449.25 6.8 -17.0 Electricity 8785.34 1.7 -0.3
Emc 10.8 25.69 -0.33 Rio Tinto 79.3 1987.50 70.00 Novartis N 254.2 65.85 0.00 Fuji Heavy Industries 332.6 3401.00 3.00 Royal Dutch Shell 1733.00 3.9 13.6 Acacia Mining 287.90 6.0 59.9 Ecofin Water & Power Opportunities 117.00 6.6 1.5 Technology Hardware & Equip. 1286.65 1.6 0.8
Bank Of America 9.8 12.88 0.03 Bhp Billiton 77.0 760.50 33.00 Eni 238.8 12.85 0.53 Fanuc 272.0 17105.00 605.00 Royal Dutch Shell 1740.50 3.4 12.8 Drax 287.70 6.0 17.7 Enquest 25.50 6.3 34.2 General Retailers 2803.11 1.5 -6.8
Vodafone 227.50 3.3 2.9 Dunelm 959.50 5.7 1.7 Scottish American Investment Co. 270.13 6.1 3.3 Personal Goods 28285.23 1.5 9.4
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Centrica 232.30 3.3 6.5 Mccarthy & Stone 268.00 5.4 5.5 Chemring 137.00 5.4 -27.7 Food & Drug Retailers 2978.90 1.4 19.1
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Under Armour 43.54 21.34 96.08 Anglo American 547.20 41.10 8.12 Unicredit 3.07 0.27 9.72 Furukawa Co., 151.00 10.00 7.09 Glencore 136.80 -8.6 51.2 Jrp 140.00 - - Sepura 120.00 -39.2 -34.4 Forestry & Paper 13938.14 -3.9 -2.8
Southwestern Energy 8.68 0.67 8.36 Vectura 175.00 12.20 7.49 Telecom Italia R 0.72 0.04 6.52 Yahoo Japan 484.00 29.00 6.37 Easyjet 1454.00 -4.8 -16.4 Allied Minds 388.10 -16.4 -3.0 Tribal 39.25 -21.5 63.5 Banks 3018.97 -2.4 -20.9
Range Resources 34.92 2.09 6.37 Weir 1054.00 62.00 6.25 Telecom Italia 0.89 0.05 6.28 Okuma 787.00 41.00 5.50 Schroders 2500.00 -4.7 -16.0 Kaz Minerals 144.30 -13.3 41.1 Gulf Marine Services 58.00 -11.3 -44.1 Industrial Engineering 7591.08 -2.3 6.0
Anadarko Petroleum 48.29 2.54 5.55 Entertainment One 154.80 9.00 6.17 Intesa Sanpaolo Spa 2.17 0.12 6.05 Jfe Holdings,. 1525.50 67.50 4.63 Aviva 428.70 -4.5 -16.9 Vesuvius 289.30 -11.7 -13.1 Flybe 57.75 -9.1 -36.9 General Financial 8766.88 -1.9 -7.3
Freeport-mcmoran 9.33 0.48 5.42 Aa 280.90 16.20 6.12 Intesa Sanpaolo 2.29 0.13 6.01 Asahi Glass , 585.00 24.00 4.28 Antofagasta 433.70 -4.5 -7.6 Int Personal Finance 254.60 -11.5 -11.9 Exillon Energy 69.50 -7.8 -35.0 General Industrials 4532.81 -1.6 3.1
Int Consolidated Airlines S.a. 527.50 -4.4 -13.6 Telecom Plus 840.50 -8.1 -21.5 Findel 177.63 -6.1 -11.8 Chemicals 10714.00 -1.3 -0.6
Downs Downs Downs Downs
Mondi 1294.00 -4.0 -3.0 Rotork 165.10 -7.4 -9.6 Chesnara 307.25 -5.8 -8.3 Nonlife Insurance 2461.21 -1.3 0.0
The Gap 23.85 -3.83 -13.84 Dfs Furniture 300.00 -20.90 -6.51 Grifols Sa 14.99 -14.40 -48.99 Fast Retailing Co., 26610.00 -3880.00 -12.73
Old Mutual 184.80 -3.4 3.3 Balfour Beatty 235.50 -6.5 -12.8 Lakehouse 48.00 -5.4 -48.4 Automobiles & Parts 6598.02 -1.2 -8.4
Michael Kors Holdings 51.19 -2.55 -4.75 Elementis 223.90 -14.70 -6.16 Gjensidige Forsikring 13.93 -0.81 -5.50 Nissan Chemical Industries, 2722.00 -76.00 -2.72
Hargreaves Lansdown 1293.00 -3.4 -14.1 Elementis 223.90 -6.1 -2.3 Boot (henry) 214.75 -5.4 -4.1 Electronic & Electrical Equip. 4277.22 -0.9 0.9
L Brands 80.50 -3.65 -4.34 Supergroup 1359.00 -61.00 -4.30 Svenska Handelsbanken Ab 12.12 -0.55 -4.35 Tokyo Gas Co., 476.90 -3.70 -0.77
Tui Ag 1044.00 -3.4 -13.8 Serco 96.90 -5.6 2.5 Hogg Robinson 62.50 -5.3 -12.1 Life Insurance 6859.06 -0.8 -12.4
Bed Bath & Beyond 46.99 -1.98 -4.04 Greencore 378.50 -13.90 -3.54 Swisscom N 462.18 -18.86 -3.92 Daiwa House Industry Co., 2999.00 -22.00 -0.73
Barratt Developments 547.00 -3.4 -12.6 Restaurant 366.00 -5.3 -46.6 Communisis 45.00 -5.3 9.8 Oil Equipment & Services 13427.95 -0.8 3.3
Ralph Lauren 91.24 -3.32 -3.51 Ip 165.00 -6.00 -3.51 Upm-kymmene Oyj 14.45 -0.49 -3.28 Sumitomo Electric Industries, 1237.00 -8.00 -0.64
Whitbread 3798.00 -3.3 -13.7 Euromoney Institutional Investor 895.50 -5.2 -10.0 Nostrum Oil & Gas 217.50 -5.2 -46.3 Travel & Leisure 8539.63 -0.8 -5.7
Based on the constituents of the S&P500 and the Nasdaq 100 index Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Apr 08 Currency Mid Change Mid Change Mid Change Apr 08 Currency Mid Change Mid Change Mid Change Apr 08 Currency Mid Change Mid Change Mid Change Apr 08 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 14.4125 -0.0925 16.4410 -0.0686 20.3302 -0.1161 Indonesia Indonesian Rupiah 13142.5000 -17.5000 14992.2565 13.5188 18538.7738 -11.6239 Poland Polish Zloty 3.7623 -0.0125 4.2918 -0.0046 5.3070 -0.0138 ..Three Month 0.7090 -0.0005 0.8085 0.0012 - -
Australia Australian Dollar 1.3210 -0.0092 1.5069 -0.0071 1.8634 -0.0117 Israel Israeli Shekel 3.7793 -0.0100 4.3112 -0.0018 5.3310 -0.0103 Romania Romanian Leu 3.9178 -0.0069 4.4692 0.0021 5.5264 -0.0058 ..One Year 0.7094 -0.0005 0.8079 0.0012 - -
Bahrain Bahrainin Dinar 0.3771 0.0000 0.4301 0.0010 0.5319 0.0004 Japan Japanese Yen 108.4150 0.5100 123.6739 0.8564 152.9298 0.8267 Russia Russian Ruble 67.0300 -1.2137 76.4641 -1.2109 94.5523 -1.6443 United States United States Dollar - - 1.1407 0.0025 1.4106 0.0010
Bolivia Bolivian Boliviano 6.9125 - 7.8854 0.0176 9.7507 0.0069 ..One Month 108.4149 0.5098 123.6739 0.8564 152.9297 0.8264 Saudi Arabia Saudi Riyal 3.7501 -0.0001 4.2779 0.0094 5.2898 0.0036 ..One Month - - 1.1406 -0.2689 1.4106 0.0010
Brazil Brazilian Real 3.6264 -0.0753 4.1367 -0.0765 5.1153 -0.1025 ..Three Month 108.4147 0.5094 123.6739 0.8564 152.9294 0.8259 Singapore Singapore Dollar 1.3478 -0.0035 1.5374 -0.0006 1.9011 -0.0037 ..Three Month - - 1.1404 -0.2689 1.4106 0.0010
Canada Canadian Dollar 1.2974 -0.0187 1.4800 -0.0179 1.8301 -0.0250 ..One Year 108.4134 0.5069 123.6737 0.8561 152.9297 0.8249 South Africa South African Rand 14.9287 -0.2989 17.0298 -0.3022 21.0583 -0.4064 ..One Year - - 1.1392 -0.2689 1.4110 0.0010
Chile Chilean Peso 682.8250 1.6400 778.9293 3.6043 963.1905 2.9906 Kenya Kenyan Shilling 101.2000 -0.1500 115.4434 0.0868 142.7524 -0.1108 South Korea South Korean Won 1153.8500 2.4500 1316.2488 5.7248 1627.6169 4.6007 Venezuela Venezuelan Bolivar Fuerte 9.9863 0.0163 11.3918 0.0439 14.0866 0.0328
China Chinese Yuan 6.4753 0.0018 7.3867 0.0185 9.1340 0.0090 Kuwait Kuwaiti Dinar 0.3017 0.0001 0.3441 0.0008 0.4255 0.0004 Sweden Swedish Krona 8.1343 -0.0187 9.2791 -0.0006 11.4741 -0.0183 Vietnam Vietnamese Dong 22294.5000 -0.5000 25432.3499 56.1478 31448.6177 21.4470
Colombia Colombian Peso 3072.2400 -33.7600 3504.6438 -30.6065 4333.6907 -44.5355 Malaysia Malaysian Ringgit 3.9025 -0.0125 4.4518 -0.0043 5.5049 -0.0137 Switzerland Swiss Franc 0.9531 -0.0017 1.0872 0.0004 1.3444 -0.0015 European Union Euro 0.8766 -0.0020 - - 1.2366 -0.0019
Costa Rica Costa Rican Colon 535.2700 - 610.6067 1.3622 755.0499 0.5322 Mexico Mexican Peson 17.7318 -0.1550 20.2274 -0.1314 25.0123 -0.2009 Taiwan New Taiwan Dollar 32.4425 0.0665 37.0086 0.1583 45.7633 0.1260 ..One Month 0.8765 -0.0020 - - 1.2365 -0.0019
Czech Republic Czech Koruna 23.6875 -0.0535 27.0214 -0.0006 33.4135 -0.0519 New Zealand New Zealand Dollar 1.4651 -0.0086 1.6713 -0.0061 2.0667 -0.0107 Thailand Thai Baht 35.1100 -0.0700 40.0516 0.0097 49.5260 -0.0638 ..Three Month 0.8763 -0.0020 - - 1.2364 -0.0019
Denmark Danish Krone 6.5231 -0.0145 7.4412 0.0001 9.2015 -0.0140 Nigeria Nigerian Naira 199.2500 0.2000 227.2935 0.7347 281.0613 0.4800 Tunisia Tunisian Dinar 2.0171 0.0040 2.3010 0.0096 2.8453 0.0076 ..One Year 0.8751 -0.0020 - - 1.2357 -0.0019
Egypt Egyptian Pound 8.8765 0.0182 10.1258 0.0433 12.5212 0.0345 Norway Norwegian Krone 8.2126 -0.1176 9.3685 -0.1130 11.5847 -0.1577 Turkey Turkish Lira 2.8469 -0.0099 3.2476 -0.0040 4.0158 -0.0111
Hong Kong Hong Kong Dollar 7.7575 -0.0003 8.8493 0.0193 10.9427 0.0072 Pakistan Pakistani Rupee 104.6750 0.0100 119.4075 0.2778 147.6542 0.1182 United Arab Emirates UAE Dirham 3.6731 -0.0001 4.1900 0.0093 5.1812 0.0036
Hungary Hungarian Forint 273.9646 -0.4204 312.5237 0.2186 386.4534 -0.3203 Peru Peruvian Nuevo Sol 3.3885 -0.0242 3.8654 -0.0189 4.7798 -0.0307 United Kingdom Pound Sterling 0.7089 -0.0005 0.8087 0.0012 - -
India Indian Rupee 66.5300 - 75.8938 0.1693 93.8470 0.0661 Philippines Philippine Peso 46.1400 0.0400 52.6340 0.1629 65.0849 0.1023 ..One Month 0.7089 -0.0005 0.8086 0.0012 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries Apr 08 Apr 07 Apr 06 Apr 05 Apr 04 Yr Ago High Low Year to date percentage changes Closing Week's Closing Week's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 2761.50 2740.80 2754.10 2723.90 2754.70 0.00 2875.90 2547.10 Industrial Metals & 27.26 Technology 2.27 Telecommunications -1.52 FTSE 100 Price Change FTSE 100 Price Change
Apr 08 chge% Index Apr 07 Apr 06 ago yield% Cover ratio adj Return FT 30 Div Yield 1.73 1.74 1.73 1.75 1.74 0.00 3.93 2.74 Mining 19.32 Oil Equipment & Serv 1.88 FTSE SmallCap Index -1.64 3I Group PLC 452.20 -2.30 Legal & General Group PLC 233.80 2.70
FTSE 100 (100) 6204.41 1.10 5984.61 6136.89 6161.63 7015.36 4.04 0.93 26.56 77.87 4924.47 P/E Ratio net 25.84 25.70 25.78 25.55 25.64 0.00 19.44 14.26 Food & Drug Retailer 19.06 Mobile Telecomms 1.83 Health Care -1.86 Admiral Group PLC 1933 -21.00 Lloyds Banking Group PLC 65.90 -2.05
FTSE 250 (250) 16829.72 0.69 16233.48 16714.23 16866.11 17715.54 2.69 2.15 17.25 103.09 11786.21 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Basic Materials 15.05 Food Producers 1.77 Equity Invest Instr -1.98 Anglo American PLC 547.20 8.80 London Stock Exchange Group PLC 2828 1.00
FTSE 250 ex Inv Co (208) 18254.74 0.73 17608.01 18122.46 18310.07 19209.53 2.71 2.30 16.05 107.64 13032.50 FT 30 hourly changes Oil & Gas Producers 9.95 Tech Hardware & Eq 1.50 Pharmace & Biotech -2.04 Antofagasta PLC 433.70 -20.20 Marks And Spencer Group PLC 444.20 36.90
FTSE 350 (350) 3455.70 1.03 3333.27 3420.46 3437.21 3860.18 3.81 1.08 24.32 39.51 5521.90 8 9 10 11 12 13 14 15 16 High Low Tobacco 9.87 Household Goods & Ho 1.09 Support Services -2.31 Arm Holdings PLC 1046 20.00 Mediclinic International PLC 922.00 24.00
FTSE 350 ex Investment Trusts (308) 3432.17 1.04 3310.57 3396.69 3413.63 3838.64 3.84 1.08 24.18 39.56 2824.09 2740.8 2753.2 2753.4 2756 2761 2760.8 2760.5 2764 2757.1 2767.1 2740.8 Oil & Gas 9.68 Electronic & Elec Eq 1.08 Forestry & Paper -3.00 Ashtead Group PLC 840.00 -17.50 Merlin Entertainments PLC 462.70 -2.70
FTSE 350 Higher Yield (106) 3178.96 1.55 3066.34 3130.44 3137.49 3690.62 5.34 0.71 26.47 50.92 5234.95 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Personal Goods 9.49 Media 0.84 FTSE 250 Index -3.44 Associated British Foods PLC 3368 24.00 Mondi PLC 1294 -54.00
FTSE 350 Lower Yield (244) 3402.76 0.47 3282.21 3386.92 3413.19 3653.13 2.12 2.11 22.34 22.03 3625.43 Industrial Eng 5.48 Aerospace & Defense 0.79 Real Est Invest & Tr -5.48 Astrazeneca PLC 4146.5 214.00 Morrison (Wm) Supermarkets PLC 201.40 1.50
FTSE SmallCap (288) 4558.70 0.74 4397.20 4525.00 4540.24 4672.61 2.95 1.21 28.05 31.02 6293.71 Consumer Goods 5.32 Nonlife Insurance 0.02 Travel & Leisure -5.70
FTSE SmallCap ex Inv Co (155) 4152.37 0.76 4005.26 4121.07 4139.72 4092.00 2.91 1.47 23.36 23.46 6012.64 FX: EFFECTIVE INDICES Gas Water & Multi 5.24 Electricity -0.26 Fixed Line Telecomms -6.40
Aviva PLC 428.70 -20.20 National Grid PLC 1000.5 21.20
Babcock International Group PLC 967.50 15.00 Next PLC 5520 75.00
FTSE All-Share (638) 3405.37 1.02 3284.73 3370.98 3387.31 3792.64 3.78 1.08 24.44 38.39 5503.71 Industrial Transport 4.76 Industrials -0.35 General Retailers -6.56
Apr 07 Apr 06 Mnth Ago Apr 08 Apr 07 Mnth Ago Bae Systems PLC 498.10 -3.40 Old Mutual PLC 184.80 -6.60
FTSE All-Share ex Inv Co (463) 3367.94 1.04 3248.63 3333.32 3349.91 3757.71 3.82 1.08 24.16 38.43 2816.80 Utilities 4.10 Construct & Material -0.36 Financial Services -7.22 Barclays PLC 150.70 0.70 Paddy Power Betfair PLC 9585 -130.00
FTSE All-Share ex Multinationals (572) 1131.37 0.84 904.48 1121.91 1131.79 1234.48 3.04 1.56 21.13 8.31 1942.95 Australia 91.51 92.57 92.36 Sweden 80.33 80.48 79.20 Beverages 3.04 Health Care Eq & Srv -0.41 Automobiles & Parts -8.50 Barratt Developments PLC 547.00 -19.00 Pearson PLC 834.00 -14.50
FTSE Fledgling (99) 7663.81 0.27 7392.30 7643.00 7611.62 7457.31 2.55 0.42 93.02 41.00 13886.37 Canada 88.58 88.77 87.77 Switzerland 160.05 159.90 158.19 NON FINANCIALS Index 2.99 Chemicals -0.61 Real Est Invest & Se -11.52 Berkeley Group Holdings (The) PLC 3124 -74.00 Persimmon PLC 2064 -44.00
FTSE Fledgling ex Inv Co (49) 10701.03 0.25 10321.92 10674.31 10607.52 9570.47 2.67 -0.28 -131.65 40.23 18832.31 Denmark 107.29 107.33 106.40 UK 83.49 83.51 86.25 Software & Comp Serv 2.96 FTSE 100 Index -0.61 Life Insurance -12.35 Bhp Billiton PLC 760.50 -11.90 Provident Financial PLC 2946 -20.00
FTSE All-Small (387) 3161.68 0.72 3049.67 3139.05 3148.44 3233.01 2.93 1.17 29.07 21.29 5604.17 Japan 140.94 138.31 135.23 USA 100.15 100.72 103.30 Leisure Goods 2.59 FTSE All{HY-}Share Index -1.13 Financials -12.54 BP PLC 350.35 6.55 Prudential PLC 1310.5 31.50
FTSE All-Small ex Inv Co Index (204) 3100.89 0.74 2991.04 3078.14 3090.76 3042.97 2.90 1.41 24.50 17.29 5688.68 New Zealand 110.44 111.25 113.27 Euro 88.93 89.17 87.35 Consumer Services -1.47 Banks -20.93 British American Tobacco PLC 4190 106.50 Randgold Resources LD 6635 380.00
FTSE AIM All-Share Index (835) 719.39 0.33 693.90 717.02 715.44 732.36 1.55 0.52 123.49 2.34 776.82 Norway 85.44 85.50 85.70
British Land Company PLC 708.00 12.50 Reckitt Benckiser Group PLC 6778 73.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Bt Group PLC 437.45 -1.15 RELX PLC 1304 5.00
Oil & Gas (17) 6569.22 3.63 6336.48 6338.92 6332.86 7799.59 6.70 0.20 72.90 112.17 5604.74 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Bunzl PLC 2051 41.00 Rexam PLC 617.50 -17.00
Oil & Gas Producers (10) 6261.40 3.68 6039.57 6039.30 6029.17 7387.67 6.73 0.21 72.30 108.98 5525.82 Burberry Group PLC 1296 -31.00 Rio Tinto PLC 1987.5 44.50
Oil Equipment Services & Distribution (7)13905.15 2.37 13412.52 13583.26 13849.20 19677.41 5.58 0.19 95.38 102.78 10303.12 FTSE GLOBAL EQUITY INDEX SERIES Capita PLC 1037 -13.00 Rolls-Royce Holdings PLC 667.00 4.50
Basic Materials (27) 3154.76 3.19 3042.99 3057.19 3100.97 4687.35 5.31 0.23 81.95 41.24 3137.53 Carnival PLC 3764 -27.00 Royal Bank Of Scotland Group PLC 211.50 -7.00
Chemicals (7) 11444.02 0.26 11038.59 11413.96 11512.78 12992.44 2.52 2.16 18.36 61.01 9894.30 Apr 08 No of US $ Day Mth YTD Total
YTD Gr Div Apr 08 No of US $ Day Mth YTD Total YTD Gr Div Centrica PLC 232.30 7.40 Royal Dutch Shell PLC 1740.5 57.00
Forestry & Paper (1) 15209.07 1.65 14670.25 14962.24 15079.78 16419.68 2.37 3.85 10.95 0.00 15798.77 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Coca-Cola Hbc AG 1441 -11.00 Royal Dutch Shell PLC 1733 65.00
Industrial Metals & Mining (2) 930.89 2.81 897.91 905.42 891.17 2020.93 1.24 0.27 300.58 0.00 812.37 FTSE Global All Cap 7722 445.12 0.7 2.6 -1.3 -0.6613.38
2.6 Oil & Gas 152 319.95 2.5 2.5 4.9 493.76 5.9 3.9 Compass Group PLC 1264 26.00 Royal Mail PLC 477.60 5.70
Mining (17) 8409.95 3.78 8112.01 8103.33 8231.91 13224.54 5.96 0.01 1819.70 127.71 4389.37 FTSE Global All Cap 7079 462.39 0.3 7.3 -0.3 0.2624.68
2.5 Oil & Gas Producers 110 300.11 2.5 2.5 5.2 471.45 6.2 4.0 Crh PLC 2023 42.00 Rsa Insurance Group PLC 470.10 -6.60
FTSE Global Large Cap 1424 392.24 0.6 2.4 -1.6 -0.8553.23
2.8 Oil Equipment & Services 32 289.48 2.6 2.6 4.3 407.22 5.2 3.7 Dcc PLC 6270 140.00 Sabmiller PLC 4217 -26.00
Industrials (120) 4350.22 1.07 4196.10 4304.19 4347.94 4689.88 2.55 1.44 27.20 23.17 4345.98
Construction & Materials (14) 5354.71 1.24 5165.01 5289.03 5295.80 4949.45 2.30 0.04 1141.84 70.10 5546.74 FTSE Global Mid Cap 1644 601.11 0.9 3.2 -0.1 0.4789.49
2.2 Basic Materials 255 362.37 1.4 1.4 3.1 534.74 3.8 3.1 Diageo PLC 1912 25.50 Sage Group PLC 630.00 -1.50
Aerospace & Defense (9) 4342.51 1.47 4188.66 4279.66 4310.27 5377.67 2.64 1.52 24.87 12.94 4502.51 FTSE Global Small Cap 4654 622.14 0.7 3.2 -0.8 -0.3793.34
2.1 Chemicals 124 577.13 1.0 1.0 -2.5 852.79 -1.9 2.7 Direct Line Insurance Group PLC 360.70 -3.40 Sainsbury (J) PLC 288.50 11.90
General Industrials (6) 3679.15 0.88 3548.81 3647.11 3728.46 3633.12 3.13 1.56 20.54 48.86 4058.06 FTSE All-World 3068 260.13 0.7 2.5 -1.4 -0.6378.27
2.7 Forestry & Paper 16 188.68 0.7 0.7 -3.8 307.03 -2.5 3.8 Dixons Carphone PLC 422.00 -2.80 Schroders PLC 2500 -124.00
Electronic & Electrical Equipment (10) 5432.20 0.71 5239.75 5393.97 5443.87 5548.48 2.28 1.89 23.23 6.22 4816.39 FTSE World 2545 461.43 0.7 2.5 -1.3 -0.6901.09
2.7 Industrial Metals & Mining 62 286.28 1.5 1.5 11.3 423.08 11.7 3.0 Easyjet PLC 1454 -74.00 Severn Trent PLC 2239 96.00
Industrial Engineering (14) 8064.04 2.11 7778.35 7897.37 8027.84 9694.47 3.33 1.34 22.40 75.35 9533.31 FTSE Global All Cap ex UNITED KINGDOM In 7399 458.85 0.7 2.8 -1.0 -0.3623.31
2.5 Mining 53 390.49 2.8 2.8 20.7 579.31 22.2 4.4 Experian PLC 1239 -12.00 Shire PLC 4250 168.00
Industrial Transportation (8) 4123.35 1.25 3977.27 4072.39 4146.25 4249.80 4.03 0.80 31.04 35.82 3499.07 FTSE Global All Cap ex USA 5761 406.41 1.1 1.6 -2.6 -1.8594.81
3.2 Industrials 538 302.50 0.9 0.9 1.1 423.36 1.8 2.4 Fresnillo PLC 933.00 8.50 Sky PLC 1018 7.00
Support Services (59) 6516.36 0.82 6285.50 6463.56 6529.06 6862.68 2.31 1.76 24.62 18.88 6558.30 FTSE Global All Cap ex JAPAN 6458 455.98 0.7 3.0 -0.6 0.0633.70
2.6 Construction & Materials 111 440.39 1.1 1.1 5.1 643.99 5.7 2.2 Gkn PLC 282.20 -3.80 Smith & Nephew PLC 1175 9.00
FTSE Global All Cap ex Eurozone 7077 459.58 0.6 2.7 -0.9 -0.2622.35
2.5 Aerospace & Defense 26 502.63 0.6 0.6 -0.8 696.38 -0.2 2.4 Glaxosmithkline PLC 1471.5 57.00 Sse PLC 1506 21.00
Consumer Goods (41) 19274.29 0.11 18591.44 19252.85 19292.12 17475.52 2.78 1.89 19.08 193.11 13737.35
FTSE Developed 2097 419.15 0.6 2.5 -1.8 -1.0582.19
2.6 General Industrials 55 222.33 0.6 0.6 2.5 335.12 3.5 2.7 Glencore PLC 136.80 -12.95 St. James's Place PLC 885.00 -23.00
Automobiles & Parts (1) 6631.83 1.44 6396.88 6537.83 6648.28 8422.57 3.08 1.81 17.91 136.30 6226.56
FTSE Developed All Cap 5683 439.87 0.6 2.6 -1.7 -0.9604.24
2.6 Electronic & Electrical Equipment 70 302.35 1.0 1.0 -4.4 389.26 -4.0 2.1 Hammerson PLC 590.00 12.50 Standard Chartered PLC 443.55 -10.30
Beverages (6) 15897.22 -0.03 15334.02 15901.72 15879.05 15047.41 2.43 1.70 24.22 96.90 10895.68
FTSE Developed Large Cap 900 386.84 0.6 2.3 -2.0 -1.2544.85
2.7 Industrial Engineering 104 544.79 1.7 1.7 1.7 752.41 2.7 2.8 Hargreaves Lansdown PLC 1293 -46.00 Standard Life PLC 339.90 -11.60
Food Producers (10) 9075.43 -0.68 8753.90 9137.31 9176.43 8184.04 1.81 1.41 39.20 10.80 7604.01
FTSE Developed Europe Large Cap 223 313.53 1.4 0.9 -5.0 -3.9499.47
3.8 Industrial Transportation 98 511.64 1.4 1.4 3.3 713.07 3.9 2.5 HSBC Holdings PLC 418.00 -14.00 Taylor Wimpey PLC 186.20 -5.00
Household Goods & Home Construction (14)13934.73 -0.39 13441.05 13988.73 14210.23 12230.41 2.11 2.82 16.85 26.15 9497.22
FTSE Developed Europe Mid Cap 306 498.72 1.5 3.7 -2.7 -2.1718.56
2.8 Support Services 74 275.31 0.6 0.6 -0.2 370.11 0.4 2.0 Imperial Brands PLC 3850 14.00 Tesco PLC 190.55 0.55
Leisure Goods (2) 5619.64 -0.16 5420.55 5628.51 5697.71 5091.26 4.34 1.29 17.89 57.34 4807.87
FTSE Dev Europe Small Cap 697 705.45 1.2 3.4 -3.6 -3.1 2.6 Consumer Goods
988.88 426 416.44 0.5 0.5 0.0 596.25 0.6 2.5 Informa PLC 710.00 15.00 Travis Perkins PLC 1826 17.00
Personal Goods (6) 24626.71 -0.04 23754.25 24636.55 24648.66 23787.81 2.69 3.06 12.17 150.56 15993.09
FTSE North America Large Cap 292 437.63 0.3 3.6 0.3 0.9579.97
2.3 Automobiles & Parts 104 332.02 0.5 0.5 -13.0 458.86 -12.0 3.2 Inmarsat PLC 1012 21.00 Tui AG 1044 -37.00
Tobacco (2) 50584.76 0.69 48792.66 50238.72 50016.89 43246.52 3.67 1.34 20.28 1063.92 31506.77
FTSE North America Mid Cap 394 648.26 0.7 3.6 1.2 1.7804.22
1.9 Beverages 48 590.10 0.8 0.8 3.2 855.65 3.7 2.5 Intercontinental Hotels Group PLC 2852 -14.00 Unilever PLC 3238.5 73.50
Health Care (20) 9312.52 -0.28 8982.60 9339.13 9263.49 10393.56 3.79 0.42 63.44 152.35 6906.47
FTSE North America Small Cap 1491 642.37 0.7 3.5 0.1 0.6775.49
1.8 Food Producers 104 575.13 0.7 0.7 2.9 844.95 3.4 2.3 International Consolidated Airlines Group S.A. 527.50 -24.50 United Utilities Group PLC 957.50 56.50
Health Care Equipment & Services (8) 7345.23 0.15 7085.00 7334.58 7298.24 7088.81 1.53 1.86 35.06 1.60 6229.16
FTSE North America 686 292.61 0.4 3.5 0.4 1.0397.30
2.2 Household Goods & Home Construction 49 412.89 0.2 0.2 2.8 587.13 3.4 2.3 Intertek Group PLC 3230 60.00 Vodafone Group PLC 227.50 7.30
Pharmaceuticals & Biotechnology (12)12542.01 -0.33 12097.67 12583.95 12477.57 14199.77 4.05 0.35 69.84 228.00 8277.71
FTSE Developed ex North America 1411 215.43 1.0 0.9 -5.0 -4.1338.65
3.3 Leisure Goods 31 132.05 -0.3 -0.3 0.1 170.55 0.5 1.5 Intu Properties PLC 315.90 4.20 Whitbread PLC 3798 -130.00
Consumer Services (96) 4841.88 0.10 4670.34 4837.17 4856.04 5162.37 2.40 1.54 27.01 26.73 4395.45 FTSE Japan Large Cap 176 297.23 0.7 -1.6 -9.3 -8.4375.71
2.4 Personal Goods 79 612.22 0.2 0.2 2.4 832.70 2.8 2.0
Food & Drug Retailers (7) 3106.71 0.07 2996.64 3104.68 3105.65 3538.03 1.72 0.23 253.26 0.00 3552.54 Itv PLC 238.40 -4.20 Wolseley PLC 3950 -30.00
FTSE Japan Mid Cap 307 464.65 0.7 -0.2 -5.5 -4.7566.27
1.9 Tobacco 11 1338.31 0.7 0.7 10.0 2646.84 11.3 3.6 Johnson Matthey PLC 2720 0.00 Worldpay Group PLC 276.70 1.60
General Retailers (32) 2748.32 0.20 2650.96 2742.87 2722.45 3044.73 2.64 2.12 17.87 2.42 3015.09
FTSE Global wi JAPAN Small Cap 781 502.92 0.6 1.7 -4.5 -3.5633.61
2.2 Health Care 178 437.45 -0.2 -0.2 -4.6 614.47 -3.8 2.0 Kingfisher PLC 377.80 -0.80 WPP PLC 1639 12.00
Media (22) 7576.49 0.04 7308.08 7573.55 7636.18 7775.57 2.68 1.24 29.96 43.20 4498.53
FTSE Japan 483 124.73 0.7 -1.3 -8.5 -7.6177.09
2.3 Health Care Equipment & Services 64 658.46 0.0 0.0 1.4 757.09 1.6 1.0 Land Securities Group PLC 1121 31.00
Travel & Leisure (35) 8343.67 0.10 8048.07 8335.01 8395.48 8783.33 2.25 1.79 24.83 79.97 7679.89
FTSE Asia Pacific Large Cap ex Japan 550 534.02 0.2 2.1 -1.3 -0.8802.85
3.4 Pharmaceuticals & Biotechnology 114 325.56 -0.3 -0.3 -6.4 476.07 -5.5 2.4
Telecommunications (7) 3937.43 1.16 3797.94 3892.25 3868.10 3966.43 4.15 0.15 159.91 0.00 4125.85 FTSE Asia Pacific Mid Cap ex Japan 423 749.86 0.2 2.1 0.4 1087.81
0.9 3.2 Consumer Services 390 388.55 0.3 0.3 -0.3 507.26 0.2 1.8
Fixed Line Telecommunications (5) 5060.09 -0.32 4880.82 5076.08 5099.61 5235.49 3.06 1.64 19.88 0.00 4388.37
Mobile Telecommunications (2) 5193.28 2.12 5009.30 5085.62 5018.33 5140.38 4.84 -0.45 -46.27 0.00 4857.12
FTSE Asia Pacific Small Cap ex Japan
FTSE Asia Pacific Ex Japan
1435 496.11
973 424.66
0.2
0.2
2.2
2.1
-0.6
-1.1
-0.1
-0.6
709.52
2.8 Food & Drug Retailers
678.62
3.3 General Retailers
55 301.83
122 520.33
0.4
0.0
0.4
0.0
0.7 409.96
-2.4 662.49
1.2
-1.9
1.9
1.6
UK STOCK MARKET TRADING DATA
Utilities (7) 8744.11 0.74 8434.33 8680.20 8633.72 8622.33 4.65 1.33 16.13 33.42 9350.93 FTSE Emerging All Cap 2039 588.33 1.1 3.2 3.0 3.4842.59
3.2 Media 85 293.00 0.6 0.6 1.3 383.26 1.8 2.0 Apr 08 Apr 07 Apr 06 Apr 05 Apr 04 Yr Ago
Electricity (2) 8765.39 0.48 8454.85 8723.20 8713.39 9282.21 5.77 1.20 14.42 145.17 11877.69 FTSE Emerging Large Cap 524 553.84 1.1 3.1 2.8 3.3798.12
3.2 Travel & Leisure 128 383.75 0.3 0.3 0.6 506.49 1.2 1.8 SEAQ Bargains 7097.00 8888.00 9995.00 3.00 8520.00 8520.00
Gas Water & Multiutilities (5) 8259.36 0.80 7966.75 8193.79 8141.13 7993.80 4.36 1.38 16.62 5.49 8836.87 FTSE Emerging Mid Cap 447 753.44 1.4 3.9 6.1 1074.01
6.6 3.1 Telecommunication 92 164.72 0.7 0.7 4.6 293.24 5.8 4.1 Order Book Turnover (m) 87.01 111.35 90.40 78.26 102.96 102.96
Financials (283) 3999.00 1.16 3857.32 3953.11 4014.94 5024.40 4.10 1.69 14.42 69.41 3552.66 FTSE Emerging Small Cap 1068 619.47 0.7 2.6 0.6 1.0854.63
3.0 Fixed Line Telecommuniations 43 141.80 0.3 0.3 7.0 277.31 8.7 4.4 Order Book Bargains 732720.00 877430.00 882196.00 766223.00 918173.00 918173.00
Banks (9) 2980.92 1.25 2875.31 2944.19 2997.23 4425.40 5.55 0.96 18.71 78.12 2105.76 FTSE Emerging Europe 111 307.00 2.2 7.5 14.915.3 452.36
4.1 Mobile Telecommunications 49 166.85 1.1 1.1 1.3 267.62 1.8 3.6 Order Book Shares Traded (m) 1240.00 1282.00 1286.00 1000.00 1280.00 1280.00
Nonlife Insurance (10) 2835.23 0.13 2734.78 2831.68 2851.66 2461.40 2.79 2.41 14.83 42.92 4838.20 FTSE Latin America All Cap 237 684.36 3.2 4.6 14.315.01017.15
3.3 Utilities 161 253.19 0.8 0.8 6.7 467.58 7.6 3.9 Total Equity Turnover (£m) 2885.91 2609.86 3038.56 2507.96 0.45 0.45
Life Insurance/Assurance (10) 6959.67 1.90 6713.11 6829.69 7022.51 8812.81 4.11 1.62 15.05 135.80 6512.10 FTSE Middle East and Africa All Cap 223 647.63 2.0 3.3 4.7 5.9 2.9 Electricity
976.37 109 277.80 0.8 0.8 7.3 508.20 8.3 3.6 Total Mkt Bargains 832617.00 982064.00 1003467.00 872576.00 23.00 23.00
Index- Real Estate Investment & Services (21) 2728.94 0.81 2632.26 2706.95 2722.72 3035.00 2.41 5.82 7.12 17.81 7062.44 FTSE Global wi UNITED KINGDOM All Cap In 323 311.77 1.1 0.5 -5.2 -4.1 3.9 Gas Water & Multiutilities
498.60 52 266.11 0.9 0.9 5.7 502.81 6.3 4.3 Total Shares Traded (m) 6571.00 8156.00 7458.00 6365.00 1.00 1.00
Real Estate Investment Trusts (26) 2791.87 1.21 2692.96 2758.52 2780.85 3100.26 3.24 5.83 5.30 31.58 3337.86 FTSE Global wi USA All Cap 1961 500.60 0.3 3.5 -0.1 0.5 2.1 Financials
645.45 688 184.55 1.0 1.0 -8.1 289.30 -7.2 3.3 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 7500.54 1.01 7234.81 7425.76 7576.35 8497.43 3.15 2.10 15.13 60.78 8206.19 FTSE Europe All Cap 1413 366.25 1.4 1.8 -4.0 -3.0 3.5 Banks
564.85 245 155.74 1.3 1.3 -12.7 260.67 -11.8 4.0 (c) Market closed.
Equity Investment Instruments (175) 7554.22 0.56 7286.59 7511.84 7523.29 8032.18 2.73 1.07 34.17 59.25 4005.05 FTSE Eurozone All Cap 645 342.62 1.6 2.0 -4.5 -4.0 3.3 Nonlife Insurance
532.18 68 209.32 0.8 0.8 -2.4 293.32 -1.7 2.5
Non Financials (355) 4102.25 0.98 3956.91 4062.55 4068.81 4389.03 3.68 0.88 31.04 38.58 5801.74 FTSE RAFI All World 3000 3048 5314.07 1.2 1.1 -2.1 6751.06
-1.2 3.4 Life Insurance 50 175.16 1.3 1.3 -11.7 268.41 -10.8 3.4
Technology (20) 1474.32 0.41 1422.09 1468.32 1462.44 1361.26 1.41 1.84 38.77 5.68 1851.57 FTSE RAFI US 1000 1007 8864.72 0.6 2.5 0.2 2.6 Financial Services
11289.01
1.0 150 206.96 0.6 0.6 -6.9 277.22 -6.4 2.2 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (14) 1900.75 0.51 1833.41 1891.03 1894.50 1465.49 1.92 1.73 30.20 14.69 2513.16 FTSE EDHEC-Risk Efficient All-World 3068 317.08 0.6 3.0 0.5 1.1 2.4 Technology
428.77 188 175.33 0.1 0.1 0.6 210.03 1.0 1.8 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (6) 1615.24 0.32 1558.02 1610.16 1595.41 1708.68 0.95 2.03 51.79 0.93 1855.23 FTSE EDHEC-Risk Efficient Developed Europe 529 273.94 1.3 3.0 -1.9 -1.3 2.7 Software & Computer Services
402.32 90 311.96 -0.2 -0.2 0.6 358.98 0.9 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 98 127.20 0.6 0.6 0.7 157.01 1.3 2.6 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day Alternative Energy 10 100.68 0.7 0.7 -2.6 134.16 -2.0 1.3 For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 6172.88 6175.75 6171.61 6174.19 6187.90 6186.13 6194.96 6205.31 6189.52 6215.75 6164.32 Real Estate Investment & Services 103 278.09 0.5 0.5 -1.7 446.44 -1.1 2.5
FTSE 250 16720.10 16772.32 16790.42 16820.39 16832.41 16846.18 16842.49 16849.31 16826.97 16875.89 16720.10 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
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 4526.01 4536.37 4538.82 4538.50 4539.94 4544.54 4551.92 4560.85 4562.50 4563.55 4526.01
FTSE All-Share 3387.01 3390.28 3389.13 3391.23 3397.72 3397.52 3401.46 3406.48 3398.81 3411.85 3385.09 (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,
Time of FTSE 100 Day's high:14:10:30 Day's Low08:22:15 FTSE 100 2010/11 High: 6242.32(01/01/2016) Low: 5536.97(11/02/2016) 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
Time of FTSE All-Share Day's high:14:10:00 Day's Low07:11:00 FTSE 100 2010/11 High: 3444.26(01/01/2016) Low: 3046.53(11/02/2016) 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.
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Maintel Holdings Pre 50.623 41.890 4.151 3.809 38.000 27.600 16.50000 11.60000 Apr 5 29.300 20.900 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Plant Health Care Pre 7.508 6.880 7.683L 5.961L 0.110L 0.090L 0.00000 0.00000 - 0.000 0.000 03/17 185.00 AIM YU/ Yu Group PLC 223.00 10.50 224.00 190.00 3134.1
22p Nil 18-04-16 Tribal Group PLC

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Monday 11 April 2016 ★ FINANCIAL TIMES 21

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AT&T♦ 38.50 -0.55 39.72 30.97 4.70 17.02 236910.35 Lockheed 226.30 3.19 228.00 181.91 2.60 20.63 68970.47
ANZ 22.28 -1.18 37.05 21.86 10.03 10.03 49207.6 Nokia 5.30 0.18 7.87 4.91 2.41 18.74 34848.88 AstellasPh 1451.5 -45.00 2009 1358 1.90 19.72 29746.59 AtlasCpcoB 190.90 -0.40 270.00 162.60 2.90 21.50 9157.92 AutomData 90.33 0.07 90.94 64.29 2.12 30.89 41321.56 Lowes 75.03 -1.47 78.13 62.62 1.42 27.66 67334.82
BHPBilltn 16.18 -0.68 33.35 14.06 12.95 20.91 39337.76 SampoA 41.11 -0.18 49.40 36.76 4.32 15.25 26205.5 Bridgestne 3936 -269.00 5182 3561 2.85 12.57 29519.63 Ericsson 82.10 0.80 120.00 70.65 3.82 21.54 30716.35 Avago Tech 156.15 -1.65 158.33 100.00 1.04 31.16 60968.45 Lyondell 83.87 -2.96 107.32 69.10 3.47 9.13 36101.84
CmwBkAu 70.76 -4.16 94.77 69.79 7.78 14.65 91872.41 France (€) Canon 3152 -203.00 4539 2977.5 4.10 18.12 38777.13 H&M 288.00 18.70 362.00 259.80 3.25 25.07 51716.33 BakerHu 43.11 0.16 70.45 37.58 1.51 -10.03 18875.88 Marathon Ptl 38.70 2.31 60.38 29.24 2.82 7.68 20480.94
CSL♦ 101.25 -0.19 108.68 85.40 1.49 26.53 35485.02 Airbus Grpe 57.51 0.53 68.50 49.96 1.90 18.46 51053.15 CntJpRwy 19115 -790.00 22960 18255 0.54 14.36 36320.53 Investor 288.10 0.00 363.40 256.80 2.82 15.49 16132.4 BankAm 12.88 -0.68 18.48 10.99 1.49 10.48 132994.7 Marsh&M♦ 60.51 -0.86 61.61 50.81 1.87 21.22 31546.75
NatAusBk 25.13 -1.11 39.71 23.82 9.66 11.91 50316 AirLiquide 94.38 -2.61 123.95 90.77 2.46 20.31 37060.5 Denso 4016 -508.00 6548 3879 2.64 14.16 32748.42 Nordea Bk 76.35 -1.20 114.60 72.40 6.87 9.92 38013.82 Baxter 41.84 0.15 43.44 32.18 2.91 60.72 22922.96 MasterCard♦ 93.79 -2.08 101.76 74.61 0.68 29.26 102182.54
Telstra 5.16 -0.17 6.53 4.98 7.77 16.20 47755 AXA 19.92 -0.42 26.02 18.80 4.35 9.50 55167.05 EastJpRwy 9661 -52.00 12815 9162 1.12 18.88 34976.18 SEB 77.60 -0.20 111.10 75.85 5.53 10.72 20701.79 BB & T 32.49 -1.02 41.90 29.95 3.09 13.29 25357.49 McDonald's 127.96 0.94 128.74 87.50 2.57 27.88 115369.75
Wesfarmers 40.33 -1.12 45.00 36.65 6.52 20.05 34380.67 BNP Parib 41.94 -2.07 61.00 37.00 3.26 8.97 59623.51 Fanuc 17105 -380.00 28575 15300 3.90 20.92 32492.2 SvnskaHn 100.40 -1.90 402.90 95.85 3.83 13.07 23103.32 BectonDick 154.64 1.15 157.50 128.87 1.52 49.87 32755.31 McGraw Hill 97.23 -2.07 108.14 78.55 1.30 24.13 25812.55
Westpc 28.52 -1.83 40.00 27.69 7.95 13.65 71740.55 ChristianDior 155.85 -2.55 195.35 140.80 1.87 20.01 32308.37 FastRetail 26610-9410.00 61970 26395 1.08 36.89 26035.33 Swedbank♦ 166.30 -7.50 209.60 150.80 6.16 13.06 23143.2 BerkshHat 211705-4035.00223011.49 186900 - 15.09 170897.17 McKesson 162.20 4.79 243.61 148.29 0.61 17.75 37076.81
Woolworths 21.14 -0.96 29.88 20.50 8.64-270.37 20338.85 Cred Agr 9.10 -0.35 14.49 7.59 3.50 8.19 27401.28 Fuji Hvy Ind 3401 -574.00 5223 3285 2.76 7.52 24558.66 TeliaSonera 41.51 -0.20 55.85 37.04 6.67 20.81 22096.9 Biogen 270.83 10.29 432.88 242.07 - 18.45 59223.13 Medtronic♦ 76.37 1.00 79.08 55.54 1.88 45.18 106997.67
Belgium (€) Danone 61.26 -0.06 67.74 51.73 2.23 31.99 45769.33 Hitachi 474.70 -51.90 858.00 431.00 2.18 9.79 21163.56 Volvo♦ 88.35 -1.50 120.50 72.20 3.14 12.91 17627.51 BkNYMeln 35.49 -1.44 45.45 32.20 1.83 13.71 38187.25 Merck 55.36 1.66 61.70 45.69 3.13 37.00 153638.32
AnBshInBv 106.85 -2.30 124.20 87.73 3.07 25.68 196026.42 EDF 10.17 0.49 23.56 9.13 10.77 6.11 22295.04 HondaMtr 2882.5 -203.50 4499 2726 2.63 11.59 48161.63 Switzerland (SFr) BlackRock 331.60 -10.93 378.80 275.00 2.52 17.51 54345.63 Metlife 41.89 -2.67 58.23 35.00 3.37 9.58 45939.37
KBC Grp 46.41 0.44 66.00 44.15 3.93 13.41 22131.97 Engie SA 13.33 -0.10 19.73 12.96 6.84 -7.35 37031.26 JapanTob 4708 18.00 4850 3551 2.16 24.61 86851.46 ABB 18.57 0.13 22.16 15.94 - 23.40 45099.97 Boeing 127.88 0.92 155.50 102.10 2.72 17.96 84720.99 Microsoft 54.42 -1.15 56.85 39.72 2.27 40.46 434702.23
Esslr Intl 107.45 0.70 125.15 95.01 0.87 33.73 26534.36 KDDI 3045 39.00 3375 2519 1.70 18.58 75577.76 CredSuisse 13.00 -0.43 28.94 12.23 4.82 -8.25 26698.07 BrisMySq♦ 66.07 1.16 70.87 51.82 2.16 74.06 110510.55 Mnstr Bvrg 132.58 -2.21 160.50 113.08 - 48.80 26903.11
Brazil (R$)
Hermes Intl 297.95 -8.70 365.55 281.20 0.87 38.46 35881.46 Keyence 59410-1980.00 70100 50500 0.29 34.64 33318.66 Nestle 72.55 1.45 77.00 65.70 2.77 17.58 242701.1 CapOne 66.67 -4.13 92.10 58.49 2.15 9.95 34606.49 MondelezInt♦ 42.32 1.08 48.58 35.88 1.45 9.96 65897.93
Ambev 18.57 -0.29 20.46 15.99 2.31 27.02 80487.55
LOreal 154.70 0.00 181.30 140.40 1.59 29.07 99351.51 MitsbCp 1790.5 -115.50 2837 1565 2.65 10.26 26260.5 Novartis 72.00 3.50 103.20 67.00 3.46 27.41 202228 CardinalHlth♦ 83.00 0.84 91.91 74.73 1.73 21.13 27334.3 Monsanto♦ 86.63 -1.24 123.82 81.22 2.41 27.57 38147.99
Bradesco♦ 30.70 -0.02 32.37 17.90 2.70 12.60 21370.79
LVMH 145.65 -3.15 176.60 130.75 2.06 22.58 84234.54 MitsubEst 2009.5 -81.00 2968 1968.5 0.64 58.59 25771.37 Richemont 60.20 -2.10 87.55 58.60 2.41 21.39 32970.73 Carnival 51.14 -1.61 55.77 40.52 2.28 21.21 28747.68 MorganStly 23.75 -1.78 41.04 21.16 2.22 8.53 46065.73
Cielo 38.10 1.89 49.30 28.03 1.32 27.92 19822.24
Nmrcble-SFR 29.50 -6.96 57.35 27.05 - -39.81 14747.82 MitsubishiEle 1113 -66.50 1718 947.00 2.09 11.45 22043.41 Roche 243.40 10.20 283.90 229.90 3.00 25.98 179418.49 Caterpillar 74.35 -2.44 89.62 56.36 3.78 22.22 43295.63 MylanNV 47.00 -0.50 76.69 37.59 - 28.82 23112.11
ItauHldFin 27.27 0.26 35.93 21.49 3.98 7.17 22913.62
Orange 14.23 -1.17 16.98 12.21 3.84 20.82 42998.83 MitsuiFud 2558 -250.00 3879 2260.5 0.94 23.50 23392.19 Swiss Re 87.55 -0.15 99.75 76.85 4.71 7.93 34052.45 CBS 54.12 -1.05 63.95 38.51 1.06 19.70 22828.57 Netflix 103.81 -1.89 133.27 61.18 - 386.01 44367.18
Petrobras 10.49 -0.04 16.26 5.67 - -4.63 21528.94
PernodRic 96.94 0.85 117.75 88.00 1.69 29.51 29351.34 MitUFJFin 490.10 -31.40 936.80 431.90 3.17 5.48 64051.58 Swisscom♦ 502.50 -20.00 576.00 452.70 3.99 20.99 27311.38 Celgene 106.26 5.07 140.72 92.98 - 57.17 83059.67 NextEraE 116.81 -1.90 119.37 93.74 2.52 20.14 53899.99
Vale 16.24 0.73 27.89 8.60 6.41 -1.99 14407.63
Renault 81.80 -3.44 100.25 59.59 2.12 8.72 27594.72 Mizuho Fin 156.70 -11.40 280.40 149.30 4.27 6.22 36046.98 Syngent 400.70 1.10 435.20 288.50 2.66 30.25 39075.98 CharlesSch 26.61 -1.77 35.72 21.51 0.86 27.05 35162.35 Nike 59.42 -2.17 68.20 47.25 1.02 27.21 79115.95
Canada (C$) Murata Mfg 12835 -735.00 22220 11610 1.34 14.82 26668.43 ChevrnTx 96.33 2.07 112.20 69.58 4.25 41.14 181404.45 NorfolkS 81.49 -1.48 107.31 64.51 2.77 16.58 24300.21
Safran 58.94 -0.28 72.45 48.87 1.92 -63.69 28039.2 UBS 14.58 -0.54 22.57 13.51 4.69 9.75 58896.24
BCE♦ 59.86 0.45 59.92 51.56 3.88 22.49 40047.24 NipponTT 4724 -124.00 5419 3844 1.73 17.22 91346.85 Chubb♦ 118.81 -2.04 134.49 94.35 2.14 14.40 55105.03 Northrop 200.57 0.26 203.88 152.31 1.48 20.18 36337.74
Sanofi 74.57 3.82 101.10 66.44 3.48 24.50 111069.56 Zurich Fin 197.70 -4.50 316.00 194.70 - 17.57 31213.81
BkMontrl 78.33 -0.54 80.76 64.01 3.84 12.77 38837.88 Nissan Mt 968.40 -73.10 1350 922.00 3.34 8.24 40148.32 Cigna♦ 130.41 -6.75 170.68 123.54 0.03 16.67 33418 NXP 82.74 0.69 114.00 61.61 - 14.17 28628.28
Sant Gbn 38.70 0.32 44.84 31.47 1.40 29.63 24760.68 Taiwan (NT$)
BkNvaS 61.85 -0.87 67.44 51.17 4.09 11.92 57316.4 Nomura 454.40 -48.50 909.20 435.10 4.37 8.36 16021.51 Cisco♦ 27.69 -1.00 29.90 22.46 3.02 13.80 139339.44 Occid Pet♦ 70.60 2.40 82.03 58.22 4.03 -6.93 53920.09
Schneider 53.12 -0.91 74.14 45.32 3.29 23.70 35675.18 Chunghwa Telecom 108.50 -1.00 111.00 93.10 4.11 23.11 25943.85
Brookfield 43.18 -1.89 48.64 37.70 1.36 14.49 32843.19 Nppn Stl 2070.5 -91.50 3505 1773.5 2.71 10.29 18149.15 Citigroup 40.47 -2.00 60.95 34.52 0.38 7.80 119031.32 Oracle 40.36 -0.80 45.24 33.13 1.50 19.67 167488.55
SocGen 30.89 -1.53 48.77 26.61 3.54 7.55 28405.37 Formosa PetChem 89.90 -2.60 94.50 63.90 0.89 19.15 26397.01
CanadPcR♦ 175.31 3.59 241.73 140.02 0.71 23.36 20677.01 NTTDCMo 2586 33.50 2888 1961 2.33 22.39 94422.29 CME Grp 89.09 -7.86 100.87 81.87 2.15 25.22 30149.19 Pepsico 105.08 1.30 105.25 76.48 2.52 29.91 153552.09
Total 40.01 1.23 50.30 35.21 5.66 21.60 112003.69 HonHaiPrc 81.90 -2.90 99.70 72.70 4.18 9.31 39478.39
CanImp♦ 96.27 -1.29 102.90 82.19 4.21 11.63 29272.16 Panasonic 904.30 -129.20 1853.5 799.00 1.45 143.18 20461.16 Coca-Cola 46.87 0.04 46.98 36.56 2.70 29.35 202923.56 Perrigo 128.70 1.97 215.73 122.62 0.35 136.89 18430.14
UnibailR 236.85 -0.90 257.85 212.05 3.69 11.17 26768.79 MediaTek 229.50 -17.50 439.50 193.50 9.06 14.65 11117.46
CanNatRs 35.97 2.37 42.46 21.27 2.29 -69.10 30350.33 Seven & I 4655 -137.00 5998 4168 1.33 29.19 38061.04 Cognizant 60.16 -2.96 69.80 51.22 - 23.74 36644.69 Pfizer 32.50 2.46 36.46 28.25 3.30 30.59 200984.55
Vinci 65.02 -0.26 66.69 50.08 2.51 19.46 43711.38 TaiwanSem 157.50 -4.50 163.00 112.50 2.62 14.64 125885.26
CanNatRy 80.64 -0.48 84.92 66.62 1.33 21.07 48878.61 ShnEtsuCh 5819 -5.00 7985 5160 1.56 19.82 23192.63 ColgtPlm 71.07 -0.13 71.47 50.84 2.02 48.81 63402.31 Phillips66 86.06 0.39 94.12 69.79 2.42 11.63 45286.98
Vivendi 18.42 0.18 24.83 16.30 9.90 39.63 28753.94
Enbridge 50.68 1.36 66.14 40.03 3.28-1417.21 36107.75 Softbank 5691 325.00 7827 4133 0.61 14.21 63025.95 Thailand (THB) Comcast♦ 61.60 -0.27 64.99 50.01 1.55 19.85 129021.77 PhilMorris♦ 100.88 1.13 101.31 76.54 3.83 23.84 156489.63
GtWesLif 35.00 -0.61 37.70 30.42 3.33 14.15 26793.58 Germany (€) PTT Explor♦ 280.00 0.00 370.00 197.00 3.67 42.96 22778.82
Sony 2858.5 -34.50 3970 2199 0.68 30.83 33285.75 ConocPhil 41.23 1.45 69.72 31.05 6.82 -12.03 51057.84 PNCFin 81.82 -3.47 100.52 77.67 2.35 11.53 41000.43
ImpOil 40.95 -1.48 55.37 37.25 1.06 34.73 26752.88 Allianz 138.90 -1.30 170.15 126.55 4.49 10.47 72411.42
SumitomoF 3200 -212.00 5770 2819.5 4.18 9.09 41737.56 United Arab Emirates (Dhs) Corning 20.53 -0.30 22.98 15.42 2.24 23.21 22577.73 PPG Inds 111.83 -1.28 118.69 82.93 1.21 22.73 29831.2
Manulife 17.21 -1.06 24.20 15.32 3.45 18.34 26157.8 BASF 63.09 -2.03 97.22 56.01 4.04 15.99 66102.55
Takeda Ph 5155 19.00 6609 4950 3.01 -41.91 37574.98 Emirtestele 18.15 -0.35 19.05 11.15 3.95 19.42 39066.85 Costco 151.65 -6.60 169.73 117.03 1.07 28.69 66579.67 Praxair 112.30 -2.94 124.99 95.60 2.44 21.92 32035.38
Potash♦ 20.77 -1.41 41.79 20.63 8.91 11.03 13402.05 Bayer 101.75 0.65 146.45 91.08 2.02 22.93 95984.51
TokioMarine 3479 -321.00 5504 3310 2.67 14.21 24308.7 United Kingdom (p) CrownCstl 88.05 0.94 88.46 75.71 3.64 63.89 29722.13 Priceline 1274.15 -25.55 1476.52 954.02 - 26.92 63218.98
RylBkC 74.81 -0.29 81.53 64.52 3.82 12.28 85736.79 BMW 74.30 -3.70 117.90 66.00 3.56 8.40 51023.52
Toyota 5467 -485.00 8700 5259 3.55 8.59 168323.86 AscBrFd 3368 24.00 3606 2705.75 1.01 47.20 37611.56 CSX 24.80 -0.82 37.67 21.33 2.70 12.96 23741.31 ProctGmbl 83.20 -0.33 84.20 65.02 3.03 28.20 225019.85
Suncor En 35.82 -0.21 40.93 27.32 2.84 -29.05 43674.76 Continental 182.00 -12.75 231.90 171.30 1.63 14.64 41524.36
Mexico (Mex$) AstraZen 4146.5 214.00 4931.68 3746 4.60 27.37 73961.2 CVS 101.47 -3.35 113.65 81.37 1.32 22.95 111463.87 Prudntl 70.17 -3.08 92.60 57.19 3.33 6.02 31175.21
ThmReut 51.99 -0.73 55.92 47.25 3.20 26.20 30394.08 Daimler 59.62 -6.26 92.70 57.01 3.75 8.31 72760.95
AmerMvl 13.52 -0.13 17.17 10.87 1.80 41.26 32037.9 Aviva♦ 428.70 -20.20 574.00 400.10 4.43 19.22 24485.86 Danaher♦ 93.19 -2.44 97.62 81.25 0.55 26.53 64123.04 PublStor 274.05 -1.47 277.06 182.08 2.27 47.18 47451.26
TntoDom♦ 54.47 -1.63 56.48 47.75 3.43 13.83 77730.08 Deut Bank 13.99 -0.92 33.42 13.03 4.89 -3.03 22011.85
FEMSA UBD 162.59 -6.67 176.84 133.52 0.66 32.53 32810.3 Barclays 150.70 0.70 289.90 143.91 4.31 -77.60 35927.99 Deere♦ 76.31 -0.19 98.23 70.16 3.13 13.97 24062.51 Qualcomm 50.56 -0.32 71.90 42.24 3.52 17.58 75581.5
TrnCan♦ 50.29 0.70 58.12 40.58 3.70 -32.17 27224.36 Deut Tlkm 15.11 -0.34 17.63 13.39 3.02 23.19 79377.03
WalMrtMex 40.22 -1.55 47.44 35.50 1.31 31.60 39608.35 BP 350.35 6.55 487.50 252.55 7.89 -14.59 92131.92 Delphi 71.59 -2.10 90.57 55.59 1.34 18.07 19771.19 Raytheon♦ 126.43 3.20 129.99 95.32 2.03 19.57 37802.32
ValeantPh 43.86 7.31 347.84 32.35 - 20.75 11534.33 DeutsPost 24.05 0.07 31.19 19.55 - 22.07 33264.89
BrAmTob♦ 4190 106.50 4195.38 3231.5 3.58 18.20 110183.57 Delta 46.29 -0.72 52.77 34.61 0.93 8.59 36037.16 Regen Pharm 404.94 -0.31 605.93 348.96 - 76.65 41657.95
E.ON 8.27 -0.06 14.85 7.08 1.54 -2.52 18879.64 Netherlands (€)
China (HK$) BSkyB♦ 1018 7.00 1180 953.50 3.22 27.87 24684.62 Devon Energy 28.77 2.16 70.48 18.07 3.19 -0.85 14978.93 ReynoldsAm 50.94 0.61 52.54 35.39 2.61 20.71 72751.26
Fresenius Med 78.23 1.40 83.17 63.10 0.92 27.62 27335.62 Altice 13.97 -1.38 47.73 9.98 - -48.57 13082.3
AgricBkCh 2.75 -0.04 4.55 2.50 7.68 4.37 10896.91 BT 437.45 -1.15 502.60 404.00 2.83 16.06 61459.41 DiscFinServ 50.55 -0.84 60.57 42.86 2.04 10.30 20938.09 Salesforce 74.85 -0.88 82.90 52.60 - -1050.12 49700.4
Fresenius SE 63.36 0.49 70.00 51.01 0.63 28.06 39444.74 ASML Hld 88.65 0.74 104.85 70.25 0.72 30.34 43821.63
Bk China 3.08 -0.14 5.68 2.83 7.16 4.81 33201.39 Compass 1264 26.00 1298 963.00 2.18 24.21 29310.56 Disney 96.42 -2.65 122.08 86.25 1.36 18.83 157315.99 Schlmbrg 73.85 1.73 95.13 59.60 2.59 47.34 92550.84
HenkelKgaA 88.46 2.83 99.44 75.76 1.33 21.94 26216.08 Heineken 79.02 0.21 85.90 64.54 1.36 26.26 51921.84
BkofComm 4.86 -0.24 8.61 4.24 6.45 4.72 21934.58 Diageo 1912 25.50 1979.5 1592.5 2.95 19.46 67877.68 DominRes 73.04 -2.35 76.59 64.54 3.39 23.85 44260.65 Sempra Energy♦ 104.24 -1.68 110.31 86.72 2.57 20.26 25987.05
Linde 121.45 -4.55 194.75 113.50 2.36 21.58 25732.12 ING 10.16 -0.25 16.00 9.19 3.23 8.08 44866.33
BOE Tech 1.67 0.07 4.78 1.24 1.15 29.69 42.83 GlaxoSmh♦■ 1471.5 57.00 1645 1227.5 5.44 8.54 101101.55 DowChem♦ 50.77 -0.37 57.10 35.11 3.24 8.97 56955.31 Shrwin-Will 296.98 9.33 297.25 218.27 0.86 27.80 27402.47
MuenchRkv 174.80 -1.00 206.50 156.00 4.04 10.24 33269.06 Unilever 39.48 0.32 42.84 32.86 2.75 25.18 77215.75
Ch Coms Cons 9.47 0.20 17.00 5.77 2.07 8.72 5404.87 Glencore 136.80 -12.95 318.46 66.67 8.93 -5.41 27777.53 DukeEner 79.77 -1.36 81.39 65.50 3.89 20.73 54911.91 SimonProp 207.10 -2.00 210.41 170.99 2.80 36.80 64078.57
SAP 67.51 -2.56 75.75 53.91 1.48 28.96 94609.2 Norway (Kr)
Ch Evrbrght 3.55 -0.22 5.65 3.07 6.08 4.93 3143.27 HSBC♦ 418.00 -14.00 674.57 413.95 8.23 9.56 116434.38 DuPont 63.20 -0.71 75.72 47.11 2.60 31.60 55388.92 SouthCpr 25.92 -1.64 33.31 21.55 1.26 29.23 20054.49
Siemens 89.25 -1.56 104.20 77.91 3.37 15.55 86539.78 DNB 96.70 -0.80 143.00 90.10 3.49 7.26 19178.32
Ch Rail Cons 9.45 0.22 17.70 6.72 1.84 8.43 2529.3 Imperial Brands 3850 14.00 3898 2926 3.43 21.76 52065.63 Eaton 59.91 -3.75 73.82 46.19 3.51 14.78 27440.85 Starbucks 61.04 0.02 64.00 42.05 1.07 39.12 90223.22
Volkswgn 120.35 -3.00 245.30 95.00 3.63 10.49 40512.49 Statoil 126.50 0.60 161.70 97.25 5.05 -12.08 49114.95
Ch Rail Gp 5.90 0.01 12.30 4.21 1.54 9.74 3199.93 LlydsBkg♦■ 65.90 -2.05 89.35 55.84 2.28 87.28 66347.6 eBay 24.07 0.19 29.83 21.52 - 15.72 27503.25 StateSt♦ 56.27 -2.68 81.26 50.73 2.25 13.16 22704.16
ChConstBk 4.88 -0.07 7.98 4.31 7.16 4.69 151239.32 Hong Kong (HK$) Telenor 130.10 -1.70 186.10 116.80 2.62 35.48 23785.23 Ecolab♦ 111.63 -0.79 122.48 98.62 1.15 35.08 32778.67 Stryker♦ 108.54 0.02 109.79 86.68 1.25 30.02 40506.24
Natl Grid 1000.5 21.20 1003.5 806.40 4.28 17.44 52872.87
China Vanke 18.66 -0.36 24.10 15.52 3.09 9.95 3163.01 AIA 43.25 -0.70 58.20 36.85 1.14 26.55 67172.56 Qatar (QR) EMC♦ 25.69 -1.14 28.77 22.66 1.71 26.47 50169.46 Sychrony Fin 28.02 -1.31 36.40 23.74 - 11.05 23363.93
Prudential♦■ 1310.5 31.50 1720 1045.99 2.90 12.99 47558.2
ChinaCitic 4.62 -0.13 7.40 4.00 - 4.59 8863.07 BOC Hold 22.90 -0.25 33.70 18.82 4.39 10.42 31210.64 QatarNtBk 139.90 -0.90 169.00 122.50 2.45 10.46 32258.4 Emerson 53.84 -0.91 62.75 41.25 3.35 14.78 34625.35 Target 80.88 -1.88 85.81 66.46 2.66 15.49 48526.55
RBS 211.50 -7.00 370.00 204.30 - -7.64 34789.81
ChinaLife 18.06 -1.08 41.00 16.12 2.52 11.60 17323.58 Ch OSLnd&Inv 24.05 -0.50 34.05 20.45 2.19 6.95 30570.07 EOG Res 73.47 1.43 101.36 57.15 0.87 -9.26 40400.15 TE Connect 61.43 -0.62 71.47 51.70 1.99 23.08 22986.93
Russia (RUB) ReckittB 6778 73.00 6868 5403 1.91 28.14 67436.92
ChinaMBank 15.98 -0.32 26.85 12.72 4.84 6.06 9456.98 ChngKng 50.00 0.05 77.55 38.20 - 11.73 24877.1 EquityResTP 73.91 -1.26 82.39 61.90 2.86 32.72 26987.62 Telsa Mtrs 250.07 12.48 286.65 141.05 - -37.70 33023.33
Gzprm neft 145.70 -1.50 158.70 122.75 4.70 12.73 51457.93 RELX 1304 5.00 1314 988.50 2.02 27.52 37320.01
ChinaMob 86.35 -0.10 118.00 79.00 3.02 14.47 227915.88 Citic Ltd 11.58 -0.22 16.40 10.02 1.67 6.09 43424.49 Exelon 34.70 -0.96 35.95 25.09 3.42 14.27 31982.81 TexasInstr 57.89 -0.05 59.67 43.49 2.31 21.44 58194.37
Lukoil 2777.5 152.50 2840 2040.1 5.28 11.82 35244.51 RioTinto 1987.5 44.50 3072 1557 7.73 -61.72 38533.09
ChinaPcIns 27.60 -1.40 47.10 23.70 2.03 14.38 9874.1 Citic Secs 17.62 -0.56 40.50 12.82 1.86 9.01 6628.54 ExpScripts 70.09 0.98 94.61 65.55 - 20.57 44353.18 TheTrvelers 115.23 -2.17 118.28 95.21 1.98 11.07 33728.77
MmcNrlskNckl 8629 169.00 11284 7840 18.43 11.08 20371.48 RollsRoyce 667.00 4.50 1061 497.00 2.11 148.88 17299.78
ChMinsheng 7.08 -0.16 11.88 6.13 1.81 4.88 6328.07 CK Hutchison 99.00 -1.70 174.90 91.80 3.31 4.35 49256.61 ExxonMb 83.21 0.25 90.09 66.55 3.31 22.59 345550.88 ThrmoFshr♦ 142.21 -0.46 145.31 117.10 0.40 30.14 55955.73
Novatek 584.40 -5.60 650.00 451.30 9.54 55.97 26471.97 RylDShlA 1733 65.00 2122 1256 7.42 84.23 104513.76
ChMrchSecs RMB 17.24 -0.65 40.00 13.45 4.26 9.61 12787.87 CNOOC 8.95 -0.21 13.78 6.41 5.69 8.63 51510.66 Facebook 110.63 -5.43 117.59 72.00 - 89.89 249994.65 TimeWrnr 73.61 0.62 91.34 55.53 1.82 16.79 58163.26
Rosneft 316.50 14.70 322.75 214.80 2.47 8.97 50042.16 SABMill 4217 -26.00 4265.5 2773 1.76 34.93 96448.69
Chna Utd Coms RMB 4.34 -0.05 10.74 3.86 1.48 27.77 14206.81 HangSeng 133.90 -3.20 162.10 121.10 4.01 9.72 32999.78 Fedex 163.42 -0.25 185.19 119.71 0.59 45.67 43865.81 TimeWrnrC♦ 204.46 -0.57 206.66 145.44 1.76 33.47 57917.46
Sberbank 112.92 4.40 114.19 66.50 0.38 12.78 36365.8 Shire♦ 4250 168.00 5870 3423 0.36 27.78 35563.85
ChShenEgy 11.78 -0.42 22.50 10.12 7.18 12.69 5160.85 HK Exc&Clr 185.60 -1.20 311.40 160.10 2.70 29.18 28914.5 FordMtr 12.55 -0.55 16.10 10.44 4.58 7.12 49085.76 TJX Cos 76.18 -2.60 79.20 63.53 1.05 22.98 50476.2
Surgutneftegas 37.60 -2.05 41.16 30.31 - 1.49 20040.14 StandCh 443.55 -10.30 1122 373.40 10.12 -7.65 20530.58
ChShpbldng RMB 6.88 -0.31 20.19 5.66 0.52-443.08 19080.22 MTR 38.65 0.25 40.00 33.10 2.44 15.81 29210.37 Franklin♦ 37.24 -2.22 52.76 31.00 1.62 12.44 22070.14 T-MobileUS 38.70 -0.66 43.43 31.19 - 49.06 31580.65
Saudi Arabia (SR) Tesco 190.55 0.55 252.30 137.00 0.61 -2.74 21882.38
ChStConEng RMB 5.59 -0.11 12.52 4.88 2.92 7.55 25811.84 SandsCh 29.60 -2.00 39.15 20.75 6.44 22.05 30790.17 GenDyn♦ 132.91 0.57 153.76 121.61 1.94 15.29 40758.2 UnionPac 79.17 0.25 112.44 67.06 2.66 15.07 66740.39
AlRajhiBnk 52.78 0.90 69.00 44.70 2.26 12.59 22870.41 Vodafone 227.50 7.30 258.00 197.70 4.93 -42.60 85229.37
ChUncHK 9.92 -0.32 16.00 7.87 2.33 22.46 30622.57 SHK Props 92.80 -2.05 137.60 79.00 2.32 9.41 34612.6 GenElectric♦ 30.79 -1.14 32.05 19.37 2.86 189.25 285889.18 UPS B 104.31 -0.64 107.32 87.30 2.68 20.39 71989.31
Natnlcombnk♦ 40.13 -0.56 72.75 36.60 1.90 9.21 21401.82 WPP 1639 12.00 1678 1273 2.33 16.94 29908.79
CNNC Intl RMB 7.53 -0.19 14.38 4.07 - 22.33 4524.77 Tencent 160.00 1.60 171.00 124.00 0.21 45.81 194018.06 GenMills♦ 63.30 -1.66 65.49 47.43 2.81 25.47 37625.62 USBancorp♦ 39.38 -1.32 46.26 37.07 2.45 13.00 68360.38
SaudiBasic 76.45 1.61 110.50 59.50 6.25 10.44 61157.55 United States of America ($)
CSR 7.68 -0.13 20.70 6.61 1.79 15.62 4327.4 India (Rs) GenMotors 29.37 -1.10 37.45 24.62 4.50 5.20 45361.75 UtdHlthcre 125.68 -4.24 131.11 95.00 1.43 21.85 119480.71
SaudiTelec♦ 61.50 -2.74 73.25 52.75 6.21 13.90 32798.68 21stC Fox A♦ 28.59 0.00 35.15 22.66 1.00 24.74 32004.99
Daqin RMB 6.81 -0.06 15.15 6.41 6.69 7.56 15635.26 Bhartiartl 334.60 -0.85 452.45 282.30 0.64 25.52 20104.16 GileadSci 96.09 1.97 123.37 81.89 1.28 8.43 130167.53 UtdTech 101.32 1.35 119.66 83.39 2.42 23.37 84777.47
Singapore (S$) 3M 166.63 -0.90 167.99 134.00 2.35 22.96 100965.21
Gree Elec Apl 0.21 0.02 0.45 0.13 - -2.52 371.60 HDFC Bk 1059.35 -5.10 1128 928.00 0.73 24.38 40256.04 GoldmSchs 150.28 -9.54 218.77 139.05 1.62 12.93 63470.69 ValeroEngy 63.06 0.15 73.88 51.68 2.58 8.25 29624.21
DBS 15.00 -0.38 21.50 13.01 3.64 9.32 27881.61 AbbottLb 42.37 0.18 51.74 36.00 2.17 25.74 62421.26
GuosenSec RMB 15.89 -0.53 34.94 13.28 1.19 10.15 5386.55 Hind Unilevr 850.40 -17.40 950.95 766.40 1.60 41.76 27659.88 Halliburton 37.33 2.24 50.20 27.64 1.85 -50.01 32048.46 Verizon♦ 52.18 -1.83 54.49 38.06 4.09 12.48 212573.02
JardnMt US$♦ 58.03 0.95 63.00 45.00 2.39 12.62 40758.77 Abbvie 58.47 1.05 71.60 45.45 3.31 19.44 94588.98
HaitongSecs 12.70 -0.56 27.90 10.00 2.29 7.51 5581.91 HsngDevFin 1079.55 -33.85 1372.4 1011.45 1.34 19.08 25635.39 HCA Hold 79.14 -0.06 95.49 43.91 - 16.57 31321.11 VertexPharm 85.25 6.10 143.45 75.90 - -38.56 21004.91
JardnStr US$♦ 29.98 0.13 35.61 25.24 0.88 9.62 33369.2 Accenture 112.83 -3.52 116.52 88.43 1.90 20.41 91720.97
Hngzh HikVDT RMB 30.66 -0.16 56.48 23.72 1.24 23.00 14942.02 ICICI Bk 221.25 -17.05 338.00 180.75 2.13 10.55 19337.42 Hew-Pack 12.06 -0.20 16.16 8.91 5.24 4.97 20823.49 VF Cp 62.62 -2.62 77.40 52.21 2.03 22.95 26515.48
OCBC 8.78 -0.06 10.92 7.41 3.73 10.14 26774.97 Adobe 94.07 -1.09 98.00 71.27 - 58.94 47054.71
Hunng Pwr 6.85 -0.09 11.90 5.63 6.37 6.90 4150.53 Infosys 1165.75 -39.70 2245 932.65 3.36 20.75 40049.01 HiltonWwde 22.30 0.29 31.60 16.16 0.60 16.41 22071.6 Viacom 37.99 -3.18 73.52 30.11 3.85 8.52 13161.88
SingTel 3.71 -0.11 4.57 3.38 4.29 16.85 43887.66 AEP 66.01 -1.00 67.19 52.29 3.12 19.21 32398.86
IM Baotou Stl RMB 2.99 0.03 7.50 2.66 - -40.31 7268.88 ITC 321.20 -14.85 359.80 268.00 1.89 26.49 38851.11 HomeDep 133.62 -1.23 136.23 92.17 1.76 24.60 167224.52 Visa Inc 78.03 0.44 81.01 60.00 0.61 29.75 151880.9
UOB 18.53 -0.34 25.05 16.80 4.17 10.55 22098.36 Aetna 108.87 -4.84 134.40 92.42 0.88 16.78 37081.12
In&CmBkCh 4.11 -0.23 7.10 3.72 7.22 4.67 45984.35 L&T 1192.25 -45.65 1888 1016.05 1.21 23.00 16692.56 Honywell 112.12 -1.11 113.47 87.00 1.83 19.39 85360.91 Walgreen 81.37 -5.33 97.30 71.50 1.76 26.21 87899.59
Aflac 63.91 -0.21 66.53 51.41 2.37 11.42 26780.87
IndstrlBk RMB 15.40 -0.13 21.42 11.90 3.51 6.20 45311.6 OilNatGas 206.15 -2.65 343.20 187.75 4.53 9.52 26510.04 South Africa (R) HumanaInc♦ 171.03 -13.71 219.79 155.24 0.64 21.17 25486.51 WalMartSto 68.06 -1.00 81.39 56.30 2.86 14.98 214003.45
AirProd♦ 142.52 -2.79 153.93 114.64 2.18 24.60 30734.49
Kweichow RMB 249.86 2.22 290.00 166.20 1.67 21.22 48472.45 RelianceIn 1036.35 1.90 1089.75 818.00 0.93 11.91 50475.91 Firstrand 45.24 -1.83 58.47 34.08 4.28 12.30 16999.05 IBM 149.35 -3.17 176.30 116.90 3.20 11.47 144231.59 WellsFargo 47.07 -1.38 58.77 44.50 3.00 11.93 238044.55
Alexion 148.89 5.95 208.88 124.16 - 232.67 33456.58
Midea 1.80 0.00 2.68 1.65 5.32 10.97 49.90 SBI NewA 183.10 -12.55 305.00 148.25 1.84 9.24 21364.25 MTN Grp 129.58 -1.02 250.00 109.56 10.60 7.05 16018.79 IllinoisTool 103.21 -0.23 104.36 78.79 1.92 21.02 37243.97 Williams Cos 16.24 0.72 61.38 10.22 14.44 -22.33 12181.07
Allegran 236.00 -32.09 340.34 226.43 - -29.22 93249.49
New Ch Life Ins 25.95 -1.40 56.55 22.00 0.92 7.68 3459.24 SunPhrmInds 811.75 -3.35 1162.3 704.00 0.36 52.17 29364.39 Naspers N 2100.85 61.85 2270 1521.98 0.22 65.66 61626.77 Illumina 168.36 1.50 242.37 130.00 - 56.82 24755.86 Yahoo 36.07 -0.41 46.17 26.15 - -8.12 34151.49
Allstate 66.84 -1.39 72.39 54.12 1.72 13.83 25285.6
PetroChina 4.88 -0.28 11.04 4.16 3.72 18.23 13272.69 Tata Cons 2432.05 -21.85 2770 2115 1.58 23.04 72030.35 South Korea (KRW) Intcntl Exch 233.52 -2.18 268.89 220.28 1.19 21.42 27796.88 Yum!Brnds 82.34 0.07 95.90 64.58 1.96 29.48 33653.31
Alphabet 759.47 -10.20 810.35 529.00 - 34.74 222210.04
PingAnIns 35.05 -2.05 62.90 30.50 2.24 10.29 33649.72 Indonesia (Rp) HyundMobis 236000-13000.00 272000 185500 1.40 14.00 19910 Intel 31.63 -0.82 35.59 24.87 2.90 14.16 149211.4 Venezuela (VEF)
Altria♦ 63.80 0.74 63.96 47.31 3.26 24.99 124916.05
PngAnBnk RMB 10.57 -0.07 17.50 9.30 1.57 7.10 19268.47 Bk Cent Asia 13075 -225.00 15225 11000 1.07 19.61 24528.28 KoreaElePwr♦ 58700-1500.00 61200 40800 0.77 3.40 32658.74 Intuit♦ 103.38 -1.31 109.21 79.63 1.06 52.17 26550.18 Bco de Vnzla 108.05 -18.95 143.95 40.00 - - 1581.83
Amazon 594.60 -3.90 696.44 374.40 - 497.24 280407.77
Pwr Cons Corp RMB 6.50 0.04 20.00 5.60 1.46 13.48 3312.57 SK Hynix 27800 -350.00 51700 25800 1.69 5.29 17022.91 John&John 109.10 -0.09 109.84 81.79 2.59 20.81 300935.38 Bco Provncl 3820 220.00 4400 1400 2.76 2.33 1369.05
Israel (ILS) AmerAir 38.50 -1.02 53.47 34.10 0.99 3.63 23216.19
SaicMtr RMB 20.18 0.12 29.18 14.00 6.11 8.14 34360.74 SmsungEl 1246000-66000.00 1494000 1033000 1.49 10.07 156655.02 JohnsonCn 38.43 -0.72 54.52 33.62 2.66 18.77 24911.68 Mrcntl Srvcs 5500 200.00 6200 2000 3.10 1.82 1085.89
TevaPha 215.10 213.04 275.90 200.30 2.26 32.60 57982.83 AmerExpr♦ 59.50 -1.60 81.92 50.27 1.82 12.32 57021.55
ShenwanHong 0.14 0.00 0.41 0.12 - -2.33 46.08 Spain (€) JPMrgnCh♦ 57.74 -2.13 70.61 50.07 2.85 10.05 211921.1
Italy (€) AmerIntGrp 53.16 -1.73 64.93 50.20 1.46 33.66 60273.71
ShgPdgBk RMB 17.60 -0.33 20.12 11.91 4.08 7.01 50700.51 Kimb-Clark 137.49 1.29 137.60 103.04 2.45 51.86 49588.49 Closing prices and highs & lows are in traded currency (with variations for that
Enel 3.76 -0.12 4.50 3.33 3.39 68.82 43630.1 BBVA♦ 5.41 -0.34 9.75 5.24 2.70 15.21 39269.75 AmerTower♦ 105.71 1.21 106.07 83.07 1.64 78.54 44810.21
Sinopec Corp 5.06 -0.03 7.79 3.86 4.52 25.25 16641.65 KinderM 17.94 0.63 44.71 11.20 10.30 181.09 40034.11 country indicated by stock), market capitalisation is in USD. Highs & lows are
ENI 12.85 0.06 17.66 10.93 6.81 -18.50 53271.96 BcoSantdr 3.66 -0.13 7.17 3.31 12.34 7.73 60315.25 Amgen 156.46 2.30 181.81 130.09 1.93 18.05 117672.16
Sinopec Oil RMB 5.02 0.01 14.23 4.71 - 2617.10 1382.53 Kraft Heinz 78.47 -0.61 81.20 61.42 2.07-241.15 95355.92 based on intraday trading over a rolling 52 week period.
Generali 12.40 -0.44 18.66 10.90 4.41 10.39 22022.35 CaixaBnk 2.49 -0.13 4.53 2.37 4.40 19.74 16509.56 Anadarko 48.29 2.48 95.94 28.16 2.14 -3.83 24916.9
Denmark (kr) Iberdrola 5.81 -0.02 6.71 5.66 0.47 16.57 42384.31 Kroger 37.99 -0.33 42.75 27.32 1.03 18.36 36564.62 ♦ ex-dividend
IntSPaolo 2.29 -0.08 3.65 2.12 2.78 15.45 41502.45 Anthem 143.74 1.89 173.59 115.63 1.66 16.01 37754.74
DanskeBk 174.60 -8.80 218.00 168.30 2.86 14.48 26997.14 Inditex 28.57 -0.54 35.38 26.00 1.33 32.80 101575.09 L Brands 80.50 -7.58 101.11 75.11 2.47 19.19 23109.94 ■ ex-capital redistribution
Luxottica 48.70 0.78 67.80 47.56 1.35 32.46 26869.53 Aon Cp 101.31 -3.56 105.24 83.83 1.09 21.69 27361.98
MollerMrsk 8410 -45.00 14970 7355 3.23 36.41 13721.49 Repsol 9.47 -0.15 18.75 7.95 9.14 -12.13 15578.67 LasVegasSd 49.48 -2.24 59.90 34.88 5.03 20.97 39321.48 # price at time of suspension
Unicred 3.07 -0.03 6.61 2.77 3.56 10.43 20897.59 Apple 108.66 -1.33 134.54 92.00 1.79 12.09 602474.39
NovoB 367.80 10.40 415.00 305.10 1.24 29.93 116296.08 Telefonica 9.31 -0.16 14.31 8.48 7.29 510.78 52838.31 LibertyGbl 39.02 0.10 58.66 30.65 - -31.85 9864.47
ArcherDan 36.09 -0.38 53.31 29.86 2.97 12.67 21190.43
Lilly (E) 74.39 0.97 92.85 67.88 2.57 34.40 82163.19

FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
ValeantPh 46.70 46.70 0.00 0.00 10.15 27.8 -48.36 FastRetail 26610.00 30490.00 -3880.00 -12.73 -9410.00 -26.1 -22.85 Apr 08 date Coupon S* M* F* price yield yield yield US Apr 08 date Coupon S* M* F* price yield yield yield US
Gree Elec Apl 0.21 0.21 0.00 0.47 0.02 9.2 5.94 Nmrcble-SFR 29.50 29.34 0.17 0.56 -6.96 -19.1 -11.81 High Yield US$ US$
Pfizer 32.50 32.76 -0.26 -0.79 2.46 8.2 11.00 Fuji Hvy Ind 3401.00 3398.00 3.00 0.09 -574.00 -14.4 -15.17 Navient Corporation 06/18 8.45 BB- Ba3 BB 106.54 5.29 0.00 -0.19 4.58 Halliburton Company 02/27 6.75 A A2 A- 124.94 3.94 0.00 -0.59 2.21
Devon Energy 28.77 27.60 1.17 4.24 2.16 8.1 34.00 Panasonic 904.30 879.20 25.10 2.85 -129.20 -12.5 -11.34 High Yield Euro Korea Electric Power Corporation 08/27 6.75 AA- Aa2 AA- 103.68 6.39 0.00 -0.27 4.66
VertexPharm 85.25 86.30 -1.05 -1.22 6.10 7.7 -1.91 Allegran 236.00 241.00 -5.00 -2.07 -32.09 -12.0 -16.68 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - SouthTrust Bank 12/27 6.57 A Aa3 A+ 123.02 4.11 0.00 -0.25 2.38
H&M 288.00 279.90 8.10 2.89 18.70 6.9 -0.35 Denso 4016.00 4006.00 10.00 0.25 -508.00 -11.2 -11.35 Archer Daniels Midland Company 12/27 6.75 A A2 A 127.80 3.82 0.00 -0.20 2.09
Halliburton 37.33 36.25 1.08 2.98 2.24 6.4 8.27 Hitachi 474.70 468.50 6.20 1.32 -51.90 -9.9 -8.31 Emerging US$ SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 113.74 4.53 0.00 -0.29 -
Marathon Ptl 38.70 37.46 1.24 3.31 2.31 6.3 10.04 Daimler 59.52 59.52 0.00 0.00 -6.36 -9.7 -9.50 Mexico 09/16 11.40 BBB+ A3 BBB+ 106.80 1.49 0.03 0.01 0.44 FleetBoston Financial Corp. 01/28 6.88 BBB Baa3 A- 123.56 4.35 0.00 -0.13 -
Softbank 5691.00 5604.00 87.00 1.55 325.00 6.1 -1.09 Nomura 454.40 447.00 7.40 1.66 -48.50 -9.6 -15.08 Brazil 01/18 8.00 BB+ Ba2 BB+ 105.68 4.63 0.03 -0.02 3.91
Russia 07/18 11.00 BB+ Ba1 BBB- 117.25 3.13 0.00 0.03 2.41 Euro
Lukoil 2777.50 2722.00 55.50 2.04 152.50 5.8 -2.20 Altice 13.97 13.80 0.17 1.20 -1.38 -9.0 2.27 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 100.00 2.63 0.00 -0.27 0.90
AstraZen 4146.50 4167.50 -21.00 -0.50 214.00 5.4 2.27 MitsuiFud 2558.00 2552.00 6.00 0.24 -250.00 -8.9 -7.17 Peru 03/19 7.13 BBB+ A3 BBB+ 114.55 2.06 0.00 -0.05 1.35
Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84 Electricite de France (EDF) 03/27 4.13 A+ A1 A 122.21 1.91 0.00 0.00 0.18
Anadarko 48.29 45.75 2.54 5.55 2.48 5.4 17.38 Glencore 136.80 132.10 4.70 3.56 -12.95 -8.6 -2.11 TeliaSonera 09/27 3.00 A- A3 A- 112.14 1.82 0.00 0.00 0.09
Sanofi 74.57 74.70 -0.13 -0.17 3.82 5.4 2.91 L Brands 80.50 84.15 -3.65 -4.34 -7.58 -8.6 -6.33 Colombia 07/21 4.38 BBB Baa2 BBB 103.58 3.65 0.00 -0.17 2.48
Brazil 01/22 12.50 BB+ Ba2 BB+ 96.91 13.29 0.05 0.22 12.12 BHP Billiton Fin Ltd 09/27 3.25 A+ A3 A+ 116.94 1.62 0.00 -0.63 -0.11
Telsa Mtrs 250.07 257.20 -7.13 -2.77 12.48 5.3 23.43 TokioMarine 3479.00 3473.00 6.00 0.17 -321.00 -8.4 -13.29
Poland 03/22 5.00 A- A2 A- 117.38 2.80 0.00 0.00 1.63 Yen
EDF 10.17 9.61 0.56 5.78 0.49 5.1 2.27 Toyota 5467.00 5424.00 43.00 0.79 -485.00 -8.1 -10.38
Turkey 09/22 6.25 - Baa3 BBB- 110.93 4.34 0.00 -0.17 3.17 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
Celgene 106.26 107.11 -0.85 -0.79 5.07 5.0 3.55 CME Grp 89.09 92.22 -3.13 -3.39 -7.86 -8.1 -4.50
Rosneft 316.50 306.80 9.70 3.16 14.70 4.9 5.15 Deut Bank 13.75 13.75 0.00 0.00 -1.17 -7.8 -6.17 Turkey 10/26 4.88 - Baa3 BBB- 101.23 4.78 0.00 -0.24 3.05 £ Sterling
Williams Cos 16.24 15.71 0.53 3.37 0.72 4.6 -5.91 Viacom 37.99 38.27 -0.28 -0.73 -3.18 -7.7 -2.79 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 122.65 4.11 0.06 0.12 1.82
Novartis 71.60 71.60 0.00 0.00 3.10 4.5 0.10 Orange 14.23 14.19 0.04 0.28 -1.17 -7.6 -9.48 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 B.A.T. Intl Fin plc (Re - British American Tobacco) 09/26 4.00 A- A3 A- 104.67 3.47 0.06 0.29 1.18
BOE Tech 1.67 1.65 0.02 1.21 0.07 4.4 -11.58 HumanaInc 171.03 172.58 -1.55 -0.90 -13.71 -7.4 -6.30 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.79 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M -
Mexico 02/20 5.50 BBB+ A3 BBB+ 121.63 2.06 0.00 0.00 0.89 Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 09/25 5.75 BB+ - BBB- 115.76 3.79 0.00 -0.03 2.06
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Apr 08 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Apr 08 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.25-0.50 16-12-2015 1.00 0.25-0.50 0.00-0.25 Index change change change 1 month 1 year VIX 15.36 -0.80 16.16 53.29 10.88 Apr 08 Price £ Yield Day Week Month Year High Low £m
US Prime 3.50 16-12-2008 3.50 3.50 3.50 Markit IBoxx VXD 15.33 -0.37 15.70 56.32 7.76 Tr 4pc '16 101.45 0.41 0.00 0.00 0.00 2.50 102.23 100.00 0.35
US Discount 0.75 16-12-2015 0.75 1.00 0.75 ABF Pan-Asia unhedged 184.15 -0.22 0.09 6.27 3.21 1.91 VXN 18.48 -0.14 18.62 46.72 12.06 Tr 1.75pc '17 101.06 0.39 11.43 -2.50 -13.33 -11.36 102.37 101.06 0.29
Euro Repo 0.05 10-09-2014 0.05 0.05 0.05 Corporates( £) 305.85 -0.27 0.65 3.62 2.67 0.73 VDAX 22.07 -1.46 23.53 32.55 16.71 Tr 5pc '18 109.03 0.25 19.05 -7.41 -28.57 -60.94 112.61 109.03 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 260.48 0.34 0.65 4.41 0.65 4.41 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 112.06 0.33 13.79 -15.38 -35.29 -62.50 114.07 111.04 0.36
Japan O'night Call 0.00-0.00 05-10-2010 0.00 0.00-0.10 0.00-0.10 Corporates(€) 217.32 -0.05 0.42 2.86 1.55 0.54 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 116.34 0.52 6.12 -13.33 -26.76 -51.40 117.83 114.45 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 233.13 0.11 0.03 3.48 0.88 0.82 Tr 1.5pc '21 103.46 0.76 4.11 -8.43 -20.00 -37.70 140.54 99.91 0.23
Gilts( £) 302.94 -0.52 0.36 5.61 -0.06 3.68 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 118.39 0.80 3.90 -10.11 -20.00 -38.93 119.14 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 249.14 0.23 -0.07 4.53 2.58 -0.19 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 131.52 1.25 4.17 -4.58 -11.97 -20.89 132.97 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 305.96 -0.27 0.56 3.74 1.87 1.02 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 128.72 1.55 3.33 -3.13 -8.28 -13.41 130.43 119.79 0.31
Apr 08 (Libor: Apr 07) night Day Week Month month month month year Overall ($) 234.07 0.36 0.58 4.02 0.58 4.02 Australia 10/18 3.25 103.47 1.84 0.00 -0.12 -0.21 0.04 Tr 4.25pc '32 132.28 1.92 2.67 -2.54 -5.42 -7.25 134.41 121.93 0.35
US$ Libor 0.37820 0.000 0.001 -0.003 0.43645 0.62880 0.89465 1.20555 Overall( £) 301.09 -0.45 0.42 5.05 0.51 2.88 11/27 2.75 102.03 2.55 0.01 -0.13 -0.28 0.00 Tr 4.25pc '36 134.79 2.10 2.44 -2.33 -4.55 -4.55 137.18 123.52 0.28
Euro Libor -0.38914 0.001 0.000 -0.003 -0.33643 -0.25757 -0.14486 -0.02357 Overall(€) 227.52 0.05 0.14 3.09 0.89 0.74 Austria 10/19 0.25 99.98 0.26 0.00 0.00 0.00 0.00 Tr 4.5pc '42 145.79 2.22 2.30 -1.77 -3.48 -2.63 148.39 132.20 0.26
£ Libor 0.48313 0.000 0.001 -0.001 0.50913 0.58913 0.73875 0.99213 Treasuries ($) 225.47 0.40 0.62 4.00 0.62 4.00 10/26 0.75 102.80 0.48 0.00 0.00 0.00 0.00 Tr 3.75pc '52 140.13 2.15 2.38 -2.27 -3.59 -6.52 142.78 121.95 0.23
Swiss Fr Libor 0.000 -0.78020 -0.72860 -0.65320 -0.53340 FTSE Belgium 06/18 0.75 101.75 -0.06 0.00 0.00 0.00 0.00 Tr 4pc '60 154.16 2.10 2.44 -1.87 -3.67 -7.49 157.42 131.72 0.22
Yen Libor -0.001 -0.06129 -0.00957 0.01871 0.10414 Sterling Corporate (£) 112.48 -0.13 - - 1.55 -3.42 06/26 1.00 105.20 0.48 -0.01 -0.03 -0.20 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor 0.000 -0.33900 -0.24700 -0.13400 -0.00700 Euro Corporate (€) 108.63 -0.09 - - 1.57 -2.17 Canada 05/18 0.25 99.34 0.58 0.03 0.02 -0.03 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.50000 0.60000 0.77500 Euro Emerging Mkts (€) 864.92 14.73 - - 4.50 -21.72 06/26 1.50 101.71 1.32 0.05 -0.02 -0.15 0.00
US$ CDs
Euro CDs
0.000
0.000
0.44000
-0.37500
0.60000
-0.28500
0.85000
-0.18500
Eurozone Govt Bond 116.56 0.09 - - 0.71 -2.13 Denmark 11/18 0.25 101.82 -0.45 0.00 0.00 0.00 0.00 GILTS: UK FTSE ACTUARIES INDICES
CREDIT INDICES Day's Week's Month's Series Series 11/25 1.75 113.39 0.33 0.00 -0.09 -0.26 0.09
Price Indices Day's Total Return Return
Short 7 Days One Three Six One Index change change change high low Finland 05/18 1.00 100.02 0.99 0.00 -0.05 -0.25 0.00
Fixed Coupon Apr 08 chg % Return 1 month 1 year Yield
Apr 08 term notice month month month year Markit iTraxx 04/26 0.50 101.20 0.38 0.00 0.00 0.00 0.00
1 Up to 5 Years 98.47 -0.07 2403.46 0.14 2.07 0.50
Euro -0.45 -0.35 -0.45 -0.35 -0.45 -0.30 -0.36 -0.21 -0.26 -0.11 -0.08 0.07 Crossover 5Y 336.08 2.46 30.90 - 337.25 298.18 France 05/19 1.00 104.33 -0.38 0.00 0.00 0.00 0.00
2 5 - 10 Years 184.10 -0.24 3373.07 0.20 4.22 1.07
Sterling 0.40 0.50 0.45 0.55 0.55 0.65 0.70 0.85 0.93 1.08 Europe 5Y 79.36 -2.38 5.42 - 82.07 71.90 11/20 0.25 102.32 -0.25 0.00 0.00 0.00 0.00
3 10 - 15 Years 214.78 -0.45 4000.44 0.03 4.25 1.66
Swiss Franc - - - - - - - - - - - - Japan 5Y 85.82 1.82 -0.63 - 93.03 83.87 05/26 0.50 100.63 0.44 0.00 -0.03 -0.19 0.00
4 5 - 15 Years 191.47 -0.30 3524.96 0.15 4.34 1.32
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 100.86 -1.25 10.06 - 102.83 87.63 05/45 3.25 145.50 1.35 0.03 0.00 -0.23 0.23
5 Over 15 Years 315.57 -0.91 4615.91 -0.30 4.51 2.15
US Dollar 0.35 0.45 0.35 0.45 0.35 0.45 0.55 0.65 0.80 0.90 1.15 1.25 Germany 04/19 0.50 103.07 -0.51 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 178.00 -0.48 3371.35 -0.03 3.65 1.86
Japanese Yen -0.75 -0.35 -0.45 -0.25 -0.40 -0.20 -0.30 -0.10 -0.20 0.00 -0.10 0.10 10/20 0.25 103.15 -0.44 0.00 0.00 0.00 0.00
Emerging Markets 5Y 311.29 14.92 22.56 0.00 311.29 278.15 02/26 0.50 103.93 0.10 0.01 -0.04 -0.17 0.00
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Day's Month Year's Total Return Return
Nth Amer High Yld 5Y 458.19 15.85 19.65 0.00 461.04 438.54 08/46 2.50 147.33 0.75 0.03 -0.04 -0.27 0.10
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Apr 08 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 82.23 4.42 3.60 0.00 83.19 75.52 Greece 07/17 3.38 92.72 9.75 -0.70 1.31 2.60 -10.61
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. 1 Up to 5 Years 309.82 0.06 0.02 -0.97 2385.07 0.37 0.82
02/26 3.00 66.34 8.84 -0.07 0.37 0.18 -2.25 2 Over 5 years 591.62 -0.72 -0.67 0.39 4374.50 -0.62 1.08
Ireland 10/17 5.50 108.91 -0.35 0.00 0.00 0.00 0.00 3 5-15 years 440.63 -0.09 0.53 0.30 3360.28 0.55 1.41
05/26 1.00 102.19 0.77 -0.04 0.06 -0.09 0.00 4 Over 15 years 732.25 -0.96 -1.14 0.56 5310.66 -1.07 1.09
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/18 0.30 100.59 0.06 -0.04 0.06 0.04 0.00 5 All stocks 545.20 -0.61 -0.58 0.23 4086.47 -0.48 1.08
06/21 0.45 99.99 0.45 -0.06 0.07 0.00 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
06/26 1.60 102.05 1.39 -0.07 0.10 0.01 0.00 Yield Indices Apr 08 Apr 07 Yr ago Apr 08 Apr 07 Yr ago
Crude Oil† Apr 39.54 2.08 Corn♦ May 361.75 0.25 Apr 07 Apr 07 Prev return stock Market stocks
03/47 2.70 104.71 2.50 -0.07 0.10 -0.06 0.00 5 Yrs 0.68 0.64 1.06 20 Yrs 2.18 2.13 2.21
Brent Crude Oil‡ 41.75 2.13 Wheat♦ May 460.00 2.25 Can 4.25%' 21 127.25 -0.500 -0.469 0.14 5.18 74248.21 7
Japan 04/18 0.10 100.69 -0.24 0.00 0.00 0.00 0.00 10 Yrs 1.46 1.41 1.67 45 Yrs 2.12 2.07 2.29
RBOB Gasoline† Apr 1.46 0.07 Soybeans♦ May 916.75 12.75 Fr 2.25%' 20 115.15 -1.168 -1.185 0.29 20.31 224753.36 15
04/21 0.05 101.18 -0.18 0.00 0.00 0.00 0.00 15 Yrs 1.96 1.91 2.02
Heating Oil† Apr 1.13 0.00 Soybeans Meal♦ May 273.40 6.70 Swe 0.25%' 22 110.75 -1.303 -1.316 0.05 29.90 232330.66 7
03/26 0.10 101.82 -0.08 0.00 0.00 0.00 0.00
Natural Gas† Apr 1.99 -0.03 Cocoa (ICE Liffe)X May 2140.00 18.00 UK 2.5%' 20 362.06 -1.649 -1.581 0.35 6.58 517681.71 27
03/46 0.80 109.96 0.42 0.00 0.01 -0.37 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ May 2866.00 18.00 UK 2.5%' 24 345.35 -1.147 -1.080 0.67 6.82 517681.71 27
Netherlands 04/17 0.50 101.00 -0.49 0.00 0.00 0.00 0.00 Real yield Apr 08 Dur yrs Previous Yr ago Apr 08 Dur yrs Previous Yr ago
Uranium† Apr 29.00 0.00 Coffee(Robusta)X May 1515.00 18.00 UK 2%' 35 237.65 -0.965 -0.927 0.76 9.08 517681.71 27
07/25 0.25 100.52 0.19 0.00 -0.03 -0.19 -0.12 Up to 5 yrs -1.38 2.11 -1.35 -1.16 -2.02 2.12 -2.01 -1.80
Carbon Emissions‡ - - Coffee (Arabica)♥ May 120.50 0.70 US 0.625%' 21 105.08 -0.330 -0.285 0.09 35.84 1183996.91 37
White SugarX 430.50 8.50 New Zealand 03/19 5.00 108.34 2.05 -0.01 -0.01 -0.10 -1.06 Over 5 yrs -0.96 23.77 -0.99 -0.93 -0.99 23.85 -1.02 -0.96
Diesel† - - US 3.625%' 28 138.39 0.359 -0.285 0.48 16.78 1183996.91 37
Sugar 11♥ 14.70 0.30 04/25 2.75 100.32 2.73 0.00 0.00 0.00 0.00 5-15 yrs -1.04 9.38 -1.05 -0.96 -1.14 9.39 -1.15 -1.08
Unleaded (95R) - - Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/19 4.50 112.55 0.43 0.04 0.02 -0.10 -0.51 Over 15 yrs -0.95 29.31 -0.99 -0.93 -0.97 29.35 -1.00 -0.95
Base Metals (♠ LME 3 Months) Cotton♥ May 60.13 1.22 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
02/26 1.50 102.67 1.21 0.03 0.03 -0.21 0.00 All stocks -0.97 20.79 -1.00 -0.94 -1.00 20.91 -1.03 -0.97
Aluminium 1523.50 25.50 Orange Juice♥ May 139.20 -4.35 amount.
Aluminium Alloy 1605.00 15.00 Palm Oil♣ - - Portugal 06/19 4.75 110.47 1.35 0.05 0.25 0.18 0.77 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4664.00 14.00 Live Cattle♣ Apr 134.50 2.30 BONDS: TEN YEAR GOVT SPREADS 02/26 3.30 99.57 3.35 0.00 0.46 0.42 0.00
Spain 04/18 0.25 100.39 0.06 -0.03 0.02 0.05 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Lead 1702.00 -8.00 Feeder Cattle♣ Apr 155.85 2.13
Nickel 8560.00 165.00 Lean Hogs♣ May 76.73 0.83 Spread Spread Spread Spread 04/26 1.95 103.91 1.53 -0.09 0.09 -0.03 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 16835.00 185.00 Bid vs vs Bid vs vs Sweden 10/18 1.00 100.05 0.98 0.00 0.04 -0.22 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1760.00 9.50 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 117.86 0.49 0.02 -0.01 -0.13 0.10 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Apr 07 Month Year Australia 2.55 2.45 0.82 Italy 1.39 1.29 -0.34 Switzerland 05/19 3.00 112.35 -0.93 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1239.50 -2.60 S&P GSCI Spt 329.02 1.51 - Austria 0.48 0.38 -1.25 Japan -0.08 -0.18 -1.81 05/26 1.25 116.81 -0.38 0.00 0.00 0.00 0.00
Silver (US cents) 1516.00 -6.00 DJ UBS Spot 79.03 0.26 - Belgium 0.48 0.38 -1.25 Netherlands 0.19 0.09 -1.53 United Kingdom 07/18 1.25 101.97 0.38 0.03 -0.05 -0.18 -0.42 Data provided by Morningstar | www.morningstar.co.uk
Platinum 957.00 2.00 R/J CRB TR 171.70 -0.36 -22.80 Canada 1.32 1.22 -0.41 Norway 1.21 1.11 -0.52 01/21 1.50 103.48 0.76 0.02 -0.06 -0.25 0.00
Palladium 537.00 1.00 Rogers RICIX TR 1975.90 - - Denmark 0.33 0.23 -1.40 Portugal 3.35 3.25 1.63 07/26 1.50 100.01 1.50 0.04 -0.04 -0.20 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Finland 0.38 0.28 -1.35 Spain 1.53 1.43 -0.20 12/46 4.25 144.95 2.22 0.04 -0.03 -0.11 -0.06
Iron Ore (Platts) 53.60 -0.70 UBS Bberg CMCI TR 12.11 -1.35 -22.76 France 0.44 0.34 -1.29 Switzerland -0.38 -0.47 -2.10 United States 03/18 0.88 100.32 0.71 0.00 -0.03 0.00 0.00
Iron Ore (The Steel Index) 53.30 -0.50 LEBA EUA Carbon 5.01 -0.99 -26.32 Germany 0.10 0.00 -1.63 United Kingdom 1.50 1.40 -0.23 03/21 1.25 100.39 1.17 0.02 -0.05 0.00 0.00
GlobalCOAL RB Index 51.70 -0.25 LEBA CER Carbon 0.38 5.56 -15.56 Greece 8.84 8.74 7.12 United States 1.73 1.63 0.00 02/26 1.63 99.09 1.73 0.03 -0.05 -0.26 0.00
Baltic Dry Index 539.00 22.00 LEBA UK Power 3742.00 6.19 84.52 Ireland 0.77 0.67 -0.95 02/46 2.50 98.83 2.56 0.04 -0.04 -0.20 0.00
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information & Tullett Prebon Information Data provided by SIX Financial Information & Tullett Prebon Information
unless otherwise stated.
22 ★ Monday 11 April 2016

Corporate diary April 11 - April 15 ECONOMIC OUTLOOK

TODAY 11 THURSDAY 14 Chinese inflation likely to show a rise

EARNINGS Burberry, the UK’s best known luxury
Alcoa Q1 $0.024 ($0.28) fashion brand, is expected to show flat Chinese data are in the spotlight this investment should both creep up to 10.4
Trading and sales update: LVMH sales when it delivers its second-half week, starting with inflation numbers for per cent growth year-on-year.
trading update. March out today. The rate has quickened Interest rate announcements from the
TUESDAY 12 The company has struggled over the consecutively since October last year to Bank of England and the Bank of
When FTSE 250 recruitment consultant past year as weakening demand from a less worrisome level of 2.3 per cent Canada are also due, out on Thursday
Michael Page International reports first- China and Hong Kong, which account for year-on-year in February. This trend is and Wednesday respectively. The BoC is
quarter results, the market will be looking about 35 per cent of sales, has weighed expected to continue with the rate expected to maintain the optimistic
to see to what extent uncertainty in the on sales growth. moving to 2.4 per cent year-on-year in stance it outlined at last month’s
run-up to the UK’s referendum on its Despite this, its January update March. meeting and keep rates on hold, despite
membership of the EU is having an showed it returned to growth in its On Friday, another slew of Chinese the concerns some have on the impact
impact on companies’ appetite for Chinese market in the final quarter of data are published including March of low prices.
making decisions and candidates’ desire 2015, and shares have performed figures for industrial production, retail The BoE meeting is also unlikely to
to change jobs. well since the start of the new calendar sales and fixed investment. With it produce a new policy. Governor Mark
Michael Page and its rivals in the year. comes a first estimate of growth during Carney is likely to reiterate fears over
— Peter Foley/Bloomberg
recruitment sector Hays and Robert They were given a boost in the first quarter. Growth in gross the coming EU referendum in June,
Walters are perceived as a bellwether for All eyes turn to net interest margins at US banks March by rumours of a mystery takeover domestic product is expected to have currently seen as the biggest threat to
the UK economy. In March, Michael Page bid following a large build-up in its cooled further in the first three months an already diminishing outlook.
reported full-year results for 2015, If you thought the fourth quarter was a Most investors will be looking to see holdings from HSBC. HSBC later of this year to 6.7 per cent year-on-year Howard Archer, of IHS, commenting
including a 4.4 per cent rise in group difficult ride for big US banks, you’re to what extent net interest margins revealed this came on behalf of from 6.8 in the final three months of last on Thursday’s meeting, says: “With the
gross profit for the full year to £556.1m. going to love the latest quarter. Three have responded to the 25 basis point multiple clients rather than one year. UK economy seemingly stuttering so far
It said that it experienced tougher months ago the talk was of choppy increase from the Fed in December. investor looking to acquire a significant Analysts hope to see improvement in in 2016, earnings growth muted and
business conditions in China as an markets, rising provisions for bad Banks with big retail businesses have position. the monthly activity indicators. domestic and global economic
economic slowdown and uncertainty in energy loans and the profit-sapping been saying for years that higher rates The company has also stepped up Industrial production growth should uncertainties high — any interest rate
financial markets dented business effects of ultra-low interest rates. will boost profits, so actually seeing a cost-cutting initiatives to boost move up to 6 per cent year-on-year from hike has disappeared off the table for
confidence to recruit new staff. From January to March all the above bump in NIMs could strengthen performance in recent months under 5.4 in February, and retail sales and now.”
Michael Page reported that UK applied — but even more so. Most expectations of better times ahead. chief executive Christopher Bailey, who Inflation data for the UK are out
companies became more reluctant to hire leading stock markets ended pretty flat But the focus is likely to be on the has also been creative director since tomorrow when improvement in March
new staff towards the end of 2015. So for the period but saw some violent banks’ investment banking units, where 2004. China activity indicators should be indicated. The headline rate is
Annual % change
investors will be looking to see to what swings along the way. revenues from trading are likely to have In its January results, the company expected to move up to 0.4 per cent
extent these trends continued into the Meanwhile, banks such as JPMorgan dipped sharply. Expect plenty of talk of promised £5m of cost cuts, in addition to 20 year-on-year from 0.3 in February.
first quarter of 2016. During 2015 it Chase gave updates on their energy further rationalisation — particularly in the £25m announced in November, Fixed asset investment Commenting on the outlook for
increased its “fee earner” staff by 4.8 per portfolios that caused investors to bond trading — even after hundreds of and a further reduction in bonus inflation, Mr Archer adds: “Consumer
15
cent to 206 and reported that total worry about mounting losses, while the job cuts in recent months. The one big payments. price inflation will trend gradually higher
headcount was at a record level of 5,835 Federal Reserve mused over moving hope: that enough capacity has been But some analysts say the company Retail sales during the second half of the year and
at the end of the year. Harriet Agnew short-term interest rates into negative squeezed out of the system, and that remains under pressure. “We think 10 there will also be a gradual pick-up in
territory. All that made for the wrong the survivors can start working towards trading for the sector and Burberry in Industrial earnings growth due to the tightness of
EARNINGS kind of volatility: the kind that better returns. January-March remained tough, with the the labour market and the introduction
production 5
Asos FY 53.796p (36.81p) complicates merger or capital-raising The first quarter could be “the current environment particularly of the National Living Wage.”
CSX Q1 $0.37 ($0.45) 2014 15 16
discussions, and makes investors darkest hour before the dawn”, wrote punishing for US and apparel-exposed Source: Thomson Reuters Datastream
Inflation data for the US and eurozone
Shareholder meetings: AP Moller-Maersk, reluctant to put on big bets. analysts at Oppenheimer, in a report names, as highlighted by Hugo Boss’ are out on Thursday. Andrew Whiffin
TeliaSonera. Trading and sales update: Michael JPMorgan plays its traditional role of last week. “The pullbacks that have recent [profit] warning,” said analysts at
Page International opening the earnings season on been announced by Morgan Stanley, JPMorgan Cazenove. 4CAST ECONOMIC CALENDAR
Wednesday, followed on Thursday by Deutsche Bank, Credit Suisse and “The weak pound and ensuing tourism
WEDNESDAY 13 COUNTRY For Indicator Units* Mkt* Prev* COUNTRY For Indicator Units* Mkt* Prev*
Wells Fargo, Bank of America and on Barclays all feel to us like the final will help UK sales but is unlikely to have MONDAY THURSDAY
Tesco has a chance to show it has reaped Friday by Citigroup. capitulation.” Ben McLannahan had a sizeable impact yet,” they added. China Mar CPI 2 2.4 2.3 Eurozone Mar HICP 2 -0.1 -0.1
benefits from its turnround plan when it Paul McClean Eurozone Mar HICP - Core 2 1 1
TUESDAY India Mar WPI 2 -0.8 -0.91
reports preliminary results. Germany Mar CPI (Final) 2 0.3 0.3 UK BoE MPC - Base Rate % 0.5 0.5
Since the beginning of the year the third to its value as it pushes a new “Farm competition from discounters such as EARNINGS Germany Mar HICP (Final) 2 0.1 0.1 US Mar CPI 2 1.1 1
UK’s largest grocer has added almost a Brand” range of own-label food to replace Aldi and Lidl. Bank of America Q1 $0.242 ($0.30) India Mar CPI 2 5 5.18 US Mar CPI (ex Food & Energy) 2 2.3 2.3
India Feb Industrial Production 2 1 1.5 US Week Initial Claims 5 n/a 267
many of its “Everyday Value” lines. According to Kantar Worldpanel, the Galaxy Ent Q1 (n/a) (n/a) Japan Mar Bank Lending Data 2 n/a 2.2
Diary commentary from FT reporters. Data, unless The move is widely seen as an attempt company has halved its sales decline in Toho FY Y138.18 (Y121.59) UK Mar BRC Retail Sales Monitor 2 n/a 0.1 FRIDAY
otherwise stated, from Thomson Reuters. Company Wells Fargo Q1 $0.982 ($1.04) UK Mar CPI 2 0.4 0.3 China Q1 GDP 2 6.7 6.8
by Tesco to compete directly with the 12 weeks to February 28. Now it will UK Mar Input Prices (unadj.) 2 -6.4 -8.1 Eurozone Feb Trade Balance (SA) 3 n/a 21.2
announcements, collated by Thomson Streetevents,
are of information publically available before last discounters that have eaten away at sales indicate whether the recovery in its sales Shareholder meetings: LVMH, UniCredit UK Feb ONS House Prices 2 n/a 7.9 Japan Feb Capacity Utilisation 1 n/a 2.6
in recent years. Investors have rewarded and share price can be reflected in wider Trading and sales updates: Burberry, Hays, Nestlé, UK Mar Output Pr (unadj.) 2 -1 -1.1 China Mar Retail Sales 2 10.4 10.2
week. Results forecasts, from Thomson I/B/E/S, are
UK Mar Output Pr Core (unadj.) 1 n/a 0.2 China Mar Industrial Production 2 6 5.4
for fully diluted, post-tax EPS in local currency for the move with the price to earnings ratio margins, bigger profits and a return to Persimmon, Poundland, Unilever China Mar Fixed Asset Inv YTD 2 10.4 10.2
the stated fiscal period. The comparable period of
the previous year is bracketed. Non-UK reporting
rising to levels not seen since 2008. dividends. WEDNESDAY UK Feb Construction Out (SA) 2 0.7 -0.8
FRIDAY 15 Canada BoC - Overnight Rate % 0.5 0.5 US Mar Capacity utilisation % 75.3 76.7
periods are broken by quarter: Q1, Q2, Q3, Q4. UK Investors will now want evidence that it Aliya Ram China Mar Exports 2 10 -25.4 US Mar Industrial production 1 -0.1 -0.5
periods are designated: Q1, H1 (first half), Q3 and can preserve its margins and boost sales. China Mar Imports 2 -10.1 -13.8 US Apr U of Mich Sent. (Prelim) 92 91
FY (full year). Analysts are expecting pre-tax profits EARNINGS EARNINGS China Mar Trade Balance 3 34.95 32.6
Aeon FY Y18.24 (Y50.22) Citigroup Q1 $1.104 ($1.52) France Mar CPI 2 -0.2 -0.2 Mkt* = market consensus estimates. Prev*= previous actual
of £447m on revenues of £55.3bn. France Mar HICP 2 -0.1 -0.1 Units*; 1 = % change on previous period, 2 = % change on same
The results will come as Tesco shows a JPMorgan Chase Q1 $1.26 ($1.45) Infosys Q4 Rs15.211 (Rs13.55) Japan Mar M2 Money Supply 2 3.1 3.1 period in previous year, 3 = national currency bn, 4 = annualised
slowdown in the revenue decline that has Tesco FY 4.64p (9.42p) Trading and sales update: Carrefour, Hennes & Japan Mar PPI 2 -3.7 -3.4 quarterly % change, 5 = 000s, NSA=not seasonally adjusted,
US Mar Retail Sales 1 0.1 -0.1 SA=seasonally adjusted.
dogged it for years amid fierce price Trading and sales update: Halfords Mauritz, Japan Tobacco, Man Group
THE AUTHORITY ON GLOBAL FUND MANAGEMENT | FINANCIAL TIMES | Monday April 11 2016
This little piggy
had too many
antibiotics
Investors managing $1tn of
assets have called on the
world’s largest food companies
to end the excessive use of
antibiotics in their meat supply
chains, amid fears that overuse
is damaging human health and
hurting financial returns.
Aviva Investors sees
antibiotic resistance as a
“systemically important” issue
because the UK fund house has
“exposure to pharmaceutical
companies, food retailers and
food producers”
Ullstein Bild via Getty Images
PAGE 3
Collective deficit of retirement plans is three times larger than official figures
US pension shortfall hits $3.4tn
ATTRACTA MOONEY
The US public pension system has
developed a $3.4tn funding hole that
will pile pressure on cities and states
to cut spending or raise taxes to
avoid Detroit-style bankruptcies.
According to academic research
shared exclusively with FTfm, the
collective funding shortfall of US
public pension funds is three times
larger than official figures showed,
and is getting bigger.
Devin Nunes, a US Republican
congressman, said: “It has been clear
for years that many cities and states
are critically underfunding their
fm
pension programmes and hiding the
fiscal holes with accounting tricks.”
Mr Nunes, who put forward a bill
to the House of Representatives last
month to overhaul how public pen-
sion plans report their figures,
added: “When these pension funds
go insolvent, they will create prob-
lems so disastrous that the fund offi-
cials assume the federal government
will have to bail them out.”
Large pension shortfalls have
already played a role in driving sev-
eral US cities, including Detroit in
Michigan and San Bernardino in Cal-
ifornia, to file for bankruptcy. The
fear is other cities will soon become
insolvent due to the size of their pen-
sion deficits.
Joshua Rauh, a senior fellow at the
Hoover Institution, a think-tank,
and professor of finance at the Stan-
ford Graduate School of Business,
who carried out the study, said: “The
pension problems are threatening to
consume state and local budgets in
the absence of some major changes.
“It is quite likely that over a five to
10-year horizon we are going to see
more bankruptcies of cities where
the unfunded pension liabilities will
play a large role.”
The Stanford study found that the
states of Illinois, Arizona, Ohio and
Nevada, and the cities of Chicago,
Dallas, Houston and El Paso have the
largest pension holes compared with
their own revenues.
In order to deal with the large
funding shortfall, many cities and
states will have to increase their con-
tributions to their pension funds,
either by raising taxes or cutting
spending on vital services.
Olivia Mitchell, a professor at the
Wharton School at the University of
Pennsylvania, told FTfm last month
continued on page 2
Fund houses
must reveal
All that glitters
BlackRock’s slip-up on its
Gold ETF raises questions
PAGE 6
executive
pay in India
MADISON MARRIAGE AND
ATTRACTA MOONEY
The Indian regulator has issued new
rules forcing fund companies to dis-
close how much they pay their top
asset managers, in a push for trans-
parency that goes much further than
equivalent legal frameworks in the
US and Europe.
Under the Securities and Exchange
Board of India’s new rules, which
were published last month, fund
companies will also be required to say
how much they pay their chief execu-
tives, chief operating officers and
heads of investment.
Investment companies will need to
publish the ratio of chief executive
pay to median employee pay by the
end of this year, matching similar
rules due to come into force for listed
companies in the US and the UK.
India’s mutual fund industry,
which oversees $200bn of assets, has
responded angrily to the changes.
Sundeep Sikka, chief executive of
Reliance Capital, the $7.6bn Mumbai-
based asset manager, wrote on Twit-
ter two days after the rules were pub-
lished: “Too frequent & disruptive
regulatory changes for [mutual fund]
distributors can have a very negative
impact on [the] growth of [the asset
management] industry.”
However Ajit Dayal, director of
Quantum Advisors, a $1bn Indian
asset management company, said the
changes would give retail investors
more confidence in the industry.
2 | FTfm
INSIDE
Face to face
Jeremy Coller, the
private equity investor,
fights factory farming
PAGE 4
Comment
Markets are hurtling from
‘doom and gloom’ to
‘muddling through’ to
‘abandon all hope ye who
enter here’ and back
again, says Katie Martin
PAGE 8
View from the US
The message from the
Panama Papers is that
you are the Shah of
Iran and this is 1979,
warns John Dizard
PAGE 8
Tata Steel pensions
The £15bn British Steel
Pension Scheme looks
certain to end up in the
Pension Protection
Fund, as Tata decides
to offload its UK
operations. John Ralfe
considers the implications
PAGE 9
Quarterly review
BlackRock topped the
leaderboard for fund
sales in Europe for a third
successive year in 2015
PAGE 10 & 11
fm
APRIL 11 2016
Editor Chris Newlands
Tel: +44 (0)20 7775 6382
e-mail: chris.newlands@ft.com
Deputy editor Madison Marriage
Tel: +44 (0)20 7873 3817
e-mail: madison.marriage@ft.com
Reporter Chris Flood
Tel: +44 (0)20 7873 3892
e-mail: chris.flood@ft.com
Reporter Sophia Grene
Tel: +44 (0)20 7873 4685
e-mail: sophia.grene@ft.com
Reporter Attracta Mooney
Tel: +44 (0)20 7775 6237
e-mail: attracta.mooney@ft.com
Production Jearelle Wolhuter
Tel: +44 (0)20 7873 4872
e-mail: jearelle.wolhuter@ft.com
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FINANCIAL TIMES
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© The Financial Times Limited 2016.
Reproduction of the contents of FTfm in
any manner is not permitted without the
publisher’s prior consent. “FINANCIAL
TIMES” and “FT” are registered Trade
Marks and Service Marks of the Financial
Times Limited
Financial advisers funnel British
pensioners to expensive active funds
PENSIONS INDUSTRY
Concerns over
quality of advice
offered to retirees
CHRIS FLOOD
Financial advisers are avoiding
cheap passive funds in favour
of expensive actively managed
alternatives when recom-
mending how British pension-
ers invest their savings, raising
questions about whether they
are serving their clients’ inter-
ests appropriately.
Numerous academic studies
have shown that active manag-
ers fail to deliver consistent
outperformance after fees, but
financial advisers are ignoring
this evidence when investing
pensioners’ savings.
This follows the introduc-
tion of rules last year giving UK
pensioners more freedom to
decide how to spend their
retirement savings, a decision
that is often taken with the
help of financial advice.
Two companies monitoring
the types of products pension-
ers are buying with these new
freedoms found that financial
advisers are overwhelmingly
recommending actively man-
aged funds to clients.
According to Zurich, Swit-
zerland’s largest insurer, 95
per cent of the cash that has
moved into drawdown retire-
ment products — an increas-
ingly popular investment vehi-
cle among retirees — on its UK
US pension
shortfall
hits $3.4tn
continued from page 1
that US public pension plans
face “grave difficulties”.
“I do believe that US cities
and towns will continue to suf-
fer, and there will be additional
bankruptcies following the
examples of Detroit,” she said.
Currently, states and local
governments contribute 7.3
per cent of revenues to public
pension plans, but this would
need to increase to an average
of 17.5 per cent of revenues to
stop any further rises in the
funding gap, the research said.
Several cities and states,
including California, Illinois,
NEWS
New rules last year gave UK pensioners more freedom to decide how to spend their
retirement savings — David Bagnall /Alamy
investment platform has gone
into actively managed funds.
Actively managed funds
accounted for a similar share
of new flows into drawdown
products at Hargreaves
Lansdown, the fund super-
market.
Mick McAteer, director of
the Financial Inclusion Centre,
a think-tank, said the draw-
down sales figures raised seri-
ous questions about the qual-
ity of advice given to retirees
and their ability to understand
the related risks.
“There is a wealth of evi-
dence that there is no value in
putting people into active
funds. It is also a big concern
that people do not properly
understand the risks of draw-
Detroit was declared bankrupt — Rebecca Cook/Reuters
New Jersey, Chicago and Aus-
tin, would need to put at least
20 per cent of their revenues
into their pension plans to
prevent a rise in their deficits,
while Nevada would have to
contribute almost 40 per
cent.
Mr Rauh’s study claims the
down accounts,” he said.
He added that the UK regu-
lator should examine the
income and return projections
used to promote pension
drawdown products, which
ensure retirement savings
remain invested while also
allowing for withdrawals to
pay for daily expenses, cars
and holidays.
These products have been
widely criticised for failing to
disclose fees clearly.
The drawdown sales figures
contrasted sharply with the
investment habits of retail
investors last year. The sale of
passive funds to mainstream
investors hit a record £5.4bn
in 2015, according to the
Investment Association, the
“true extent” of funding prob-
lems in US public pension sys-
tem has been obscured
because plans calculate both
their costs and liabilities on the
assumption they will achieve
returns of between 7 and 8 per
cent a year. The academic
believes this rate is “wildly
FINANCIAL TIMES Monday 11 April 2016
trade body representing asset
managers.
Alistair Wilson, Zurich’s
head of retail platform strat-
egy, said actively managed
funds could be useful for pen-
sioners, particularly those who
face complex financial pres-
sures over the course of their
retirement.
63,600
Number of income
drawdown accounts
that have been
opened since last April
95 % since last April when the gov-
Percentage of the
cash in Zurich’s UK
drawdown products in
actively managed funds
optimistic and unlikely to be
achieved”.
Mr Rauh said a more realis-
tic return rate, based on US
Treasury bond yields, was
around 2-3 per cent a year.
However, Hank Kim, execu-
tive director at the National
Conference on Public
Employee Retirement Sys-
tems, a trade association for
public pension plans in the US,
called Mr Rauh’s study a
“manipulation of arithmetic”.
“The [public pension] plans
are in good shape and are
headed to being in even better
shape,” he said.
Mr Kim added that public
pension funds set their return
targets at 7.5 per cent because
that is what they have been
able to achieve historically.
US public pensions recorded
an average annual return of 7.3
He said: “Active managers
have decisively beaten their
passive rivals in the battle for
pension assets. While there is a
trend towards passive funds in
the wider market, they are
barely competing in the new
retirement landscape.
“Active management does
not necessarily bring more
risk.”
But Nick Blake, head of pol-
icy in Europe for Vanguard,
the world’s second-largest
asset manager, which has built
its reputation on selling low-
cost passive funds, said pen-
sioners should think carefully
before committing all their
retirement savings to active
managers, who tend to charge
higher fees.
He said: “Keeping costs low
is vital. Pension investors may
think that in order to beat lon-
gevity risk — the danger that
their savings pots become
exhausted before death —
they need to ‘boost’ their port-
folio returns by using active
managers.
“But the evidence shows
most active mangers fail to
beat a well-balanced, low-cost
index approach after fees are
taken into account.”
Data from the Association of
British Insurers show that
63,600 income drawdown
accounts have been opened
ernment abolished the
requirement for savers to buy
an annuity during retirement
to guarantee them an income.
State pension
shortfalls relative
to revenues
Ratio of
pension
State shortfall*
Illinois 4.46
Arizona 4.07
Ohio 4.01
Nevada 3.95
Kentucky 3.71
* To estimated 2014 revenue
Source: Hoover Institution,
Stanford University
per cent in the 10 years to the
end of June 2014, according to
Cliffwater, an investment con-
sultancy.
“Over a long-term trend,
that 7.5 per cent return rate is
absolutely feasible,” he said.
FINANCIAL TIMES Monday 11 April 2016 FTfm | 3

NEWS

Looming antibiotics crisis troubles big investors

INVESTMENT STRATEGY
Drug resistance is
‘systemically
important’ issue
ATTRACTA MOONEY
Big investors managing $1tn of
assets have called on the
world’s largest food companies
to end the excessive use of
antibiotics in their meat sup-
ply chains, amid fears “sys-
temic overuse” of these drugs
is damaging human health and
hurting financial returns.
Fast food retailers McDon-
ald’s and Domino’s Pizza, JD
Wetherspoon, the British pub
chain, and seven other global
restaurant groups have been
contacted by the coalition of
54 asset managers and pension
funds.
The coalition includes Aviva
Investors, the £290bn UK fund
house, Natixis Asset Manage-
ment, the €331bn French asset
manager, and Coller Capital,
the private equity firm.
These investors have urged
companies to stop their meat
and poultry suppliers using
antibiotics that are vital for
human health, after the World
Health Organisation warned
that irresponsible use is lead-
ing to a “post-antibiotic era”.
The concern is that the use
of antibiotics in livestock is
causing antibiotic resistance in
humans. The WHO said in
2014 that antibiotic resistance
is a “threat so serious that it
threatens the achievements of
modern medicine”. “Common
infections and minor injuries
which have been treatable for
decades can once again kill,”
the organisation warned.
Abigail Herron, head of
responsible investment
engagement at Aviva Inves-
tors, said her company sees
antibiotic resistance as a “sys-
temically important” issue
because the UK fund house has
“exposure to pharmaceutical
companies, food retailers and
food producers”.
“We face potentially unmiti-
gated health and financial
impacts if the excessive use of
antibiotics in livestock produc-
tionisnotaddressed,”she said.
“It is pretty scary. Resistance
to antibiotics is developing far
faster than antibiotics are
being developed. We need to
be preserving what antibiotics
we have left and not using
them [in food production].”
Around half of all antibiotics
produced in the UK are given
to livestock, with the figure ris-
ing to 80 per cent in the US, the
coalition said. Antibiotics are
typically given to prevent dis-
ease in animals, such as chick-
ens and pigs, reared in close
quarters.
Jeremy Coller, chief invest-
ment officer of Coller Capital
and founder of the Farm Ani-
mal Investment Risk & Return
(Fairr) Initiative, which aims
to highlight poor farming
standards to investors, added
that food producers that do
not reduce antibiotic use are
Antibiotics are typically given to prevent disease in animals
reared in close quarters — Scott Olson/Getty Images
likely to face costly regulation
in future.
“These large food companies
are key ingredients in the port-
folios of most of our pensions
and savings — thus it is a case of
properrisk managementtoask
them to work out how they will
meetthischallenge,”he said.
The investor coalition said
half of the 10 restaurant com-
panies contacted have no pub-
licly available policies in place
on how they manage or miti-
gate antibiotic overuse in their
supply chains.
Catherine Howarth, chief
executive of ShareAction, a
responsible investment char-
ity that brought the investor
collation together with the
Fairr Initiative, said: “For a
long period, restaurants in this
group of companies have
relied on meat where the ani-
mals are closely confined and
are fed antibiotics to prevent
disease. This is becoming a
supply-chain risk.”
In response to the coalition’s
concerns, JD Weatherspoon
said that “antibiotics are only
used on prescription by a qual-
ified vet and never as growth
promoters” in its food chain.
Domino’s said its suppliers
are only allowed to use antibi-
otics when necessary to treat
disease.
McDonald’s said it is “moni-
toring, controlling and reduc-
ing the use of antibiotics
among chickens in our supply
chain”. “We have a policy that
bans the use of the highest-pri-
ority critically important anti-
biotics for human medicine, as
designated by [the] WHO, in
our chicken supply chain by
2018,” it added.

based Fullerton Fund Management as

Movers a fixed income product specialist. Ms
& shakers Tan previously worked for Nomura’s
wealth management business.

C UBS Wealth Management has hired

C Pierre-Emmanuel Juillard is to
rejoin Axa Investment Managers to
establish a 10-strong investment team
focused on liquid absolute return
strategies. Mr Juillard, who will be
based in Hong Kong, returns to the
€669bn asset management arm of
Axa, the French insurer, from Goldman
Sachs.
C JPMorgan Asset Management has
hired Michael Bailey as national sales
manager for the wealth management
channel in its US funds business. Mr
Bailey previously worked in a similar
role at BlackRock, the world’s largest
asset manager.
C Northern Trust has appointed John
McCareins to lead its asset
management business across the
Asia-Pacific region. Mr McCareins
previously served as head of the
retirement practice’s outsourced chief
investment officer business at
Northern Trust, the Chicago-based
trust bank and wealth manager.
C Candriam Investors has hired
Andreas Wenk as head of global
financial institutions. Mr Wenk, who
will be based in Germany, joins the
€94bn subsidiary of New York Life
Investment Management from Itaú
Asset Management, the Brazilian fund
house.
C Alicia Tan has joined Singapore-
Tracey Woon as vice-chairman for
Asia, a newly created role. Ms Woon
Michael Bailey previously worked for Citigroup, the
US bank.
C Cazenove Capital Management, a
wealth management subsidiary of
Schroders, has hired Caspar Rock as
chief investment officer. Mr Rock will
join in the third quarter from Architas,
the £19.9bn fund of funds investment
boutique owned by Axa, the French
insurer.
John McCareins C Othman Domiati has joined
Manulife Asset Management as head
of sales for the Middle East. Mr
Domiati, who will be based in London,
previously worked for Erste, the
Austrian bank, before moving to the
$935bn investment arm of Manulife,
the Canadian-listed insurer.
C Standard Life Wealth has
appointed Gair Brisbane as senior
client portfolio manager responsible
Gair Brisbane for charity investments. Mr Brisbane
joins the Edinburgh-based insurer and
asset manager from Brown Shipley,
the private bank.
C Legal & General has appointed
Matt Wilmington as director of
strategic transactions within the
pension risk transfer business of the
UK-listed insurer. Mr Wilmington
previously worked for Aon Hewitt, the
consultancy.
4 | FTfm
Private
equity’s
vegetarian
option
JEREMY COLLER
The investor wants to
‘protect both human health
and shareholder value’
SOPHIA GRENE
J
eremy Coller, the private
equity specialist, has been a
vegetarian since he was 12.
He would be a vegan if he did
not have a secret vice in the
form of a cheese addiction. Silk and
leather are not to be found in his
wardrobe.
Until recently, this principled per-
sonal stand was entirely separate
from his professional life as a pioneer
of the private equity secondary mar-
ket, an industry that enables inves-
tors to acquire positions in private
equity funds.
Now the 57-year-old, who founded
Coller Capital, the private equity
firm, in 1990, is trying to bring the
two together with a foray into the
world of sustainable investment and
shareholder engagement.
Mr Coller has his own philan-
thropic endowment, the Jeremy
Coller Foundation, which is running
an initiative called Fairr — farm ani-
mal investment risk and return —
intended to raise awareness about the
role and risks of factory farming for
investors.
While campaigners on healthy eat-
ing, animal welfare and environmen-
tal issues have all flagged numerous
issues with factory farming in recent
decades, investors, even among the
growing sustainability community,
have paid the issue scant attention.
The Fairr initiative is intended to
change that. Mr Coller argues that
there are substantial financial issues
for investors to consider, aside from
the ethical questions.
The first issue the initiative is try-
ing to address is the use of antibiotics
in factory farming. Farmers routinely
feed their animals antibiotics to pre-
vent infections from spreading like
wildfire across a farm. Antibiotics
also have the convenient side effect of
helping livestock grow more quickly.
Unfortunately, this is leading to the
Born May 17 1958
Total pay £500,000 (salary)
Education 1982 BSc (hons) in
management sciences,
University of Manchester
MA (philosophy), University
of Sussex
Career 1984-85 Head of research,
Fidelity International
1985-90 Public equities analyst
and venture capital/buyout
manager, ICI Pension Fund
1990-2013 Chief executive and
chief investment officer,
Coller Capital
2013 to present Executive
chairman and chief investment
officer, Coller Capital
FACE TO FACE
development of bugs that are unaf-
fected by antibiotics, some of which
will inevitably spread to humans with
potentially appalling effects, accord-
ing to the World Health Organisation.
This is a public health concern that
we all need to worry about, but Mr
Coller argues that it is also relevant
for investors.
“Avian flu in the US last year cost
$3.3bn. That is 6 per cent of the $50bn
US poultry industry,” he says. Apart
from epidemics, there are also regula-
tory risks, such as California’s deci-
sion last year to ban the routine use of
antibiotics for livestock, as well as
legal and reputational concerns.
Appealing to investors’ sense of
self-preservation instead of their
humanity is an idea that only came to
Mr Coller fairly late in the game.
“I used to completely ignore ESG
[environmental, social and govern-
ance investing]. I paid lip service to it,
that was all,” he says.
But a conversation with the execu-
tive director of Fairr, Alan Briefel, and
Rosie Wardle, who runs the Jeremy
Coller Foundation, led him to see ESG
as the way to get investors interested
in his animal-welfare agenda.
“Now our ambition is to get [ani-
mal welfare] as an agenda item on the
PRI,” Mr Coller says in reference to
the UN-backed network of fund man-
agers pursuing sustainable invest-
ment strategies.
The PRI is in the process of review-
ing its objectives, which has created
an opening for the addition of the
Fairr campaign.
Fairr’s approach to antibiotic use is
to write directly to the senior execu-
tives and boards of companies that do
not follow best practice. Companies
targeted by the campaign include
McDonald's, the fast-food chain,
Domino’s Pizza and JD Wetherspoon,
the pub chain.
If it were just one campaigning
group writing the letter, the recipient
might drop it in the bin.
But in this case, Fairr represents
managers and owners of $700bn
assets under management, and
counting. In a move reminiscent of
other ESG campaigners, Fairr has
assembled an alliance of asset owners
and managers prepared to put their
names on this letter.
Among the big signatories are
Aviva Investors, the £290bn asset
manager, and Natixis Asset Manage-
ment, the €331bn French fund house.
FINANCIAL TIMES Monday 11 April 2016
Coller
Capital
Established 1990
Assets under management $17bn
Employees 180
Headquarters London
Ownership Jeremy Coller
These are not vegetarian activist
funds, but serious investment man-
agers, albeit ones that have made a
clear commitment to ESG.
Coller Capital itself set up an ESG
committee in 2011. For the first cou-
ple of years it consisted of “five senior
people in the organisation, but they
didn’t report to anyone”, according to
Mr Coller.
Then in 2013, he found himself
making a presentation to his own ESG
committee on behalf of Fairr, and
realised there was something useful
there. “They now report to me as
chief investment officer.”
To show it is a sincere conversion,
Mr Coller has just hired a head of ESG,
Adam Black. He expects to add value
to Mr Coller’s investments in a rela-
tively short space of time, by pointing
out inefficiencies, risks and brand-
management problems in investee
companies.
This implies that many private
equity companies have been leaving
money on the table by assuming that
ESG has nothing to offer.
At a time when private equity is
struggling to convince investors it
offers value for money, taking ESG
seriously may be one way to secure a
competitive advantage.
Mr Coller says: “These large food
companies are key ingredients in the
portfolios of most of our pensions and
savings. Thus it is a case of proper risk
management to ask them to work out
how they will meet this challenge.
“The world is changing, regulation
on antibiotic use is set to tighten, and
consumer preferences are shifting
away from factory-farmed food. As
stewards of these food companies and
responsible investors, we want to pro-
tect both human health and share-
holder value.”
FINANCIAL TIMES Monday 11 April 2016
Asset managers eye €8bn of Italian bank capital
INVESTMENT STRATEGY
Institutional investors
to cut their exposure
to domestic lenders
CRISTINA BALOTELLI
The Italian government’s deci-
sion to encourage a large group
of institutional investors to cut
their exposure to domestic
banks has freed up to €8bn of
capital as a potential source of
business for asset managers.
The new pool of money is an
important source of income
for asset management compa-
nies, at a time when their fees
and revenues are under
increasing pressure.
Under an agreement signed
in April last year between the
Italian Ministry of Economy
and Finance and Acri, an asso-
ciation representing bank
foundations, these investors
can no longer hold more than
one-third of their assets in a
single company.
This has caused problems
for some of Italy’s 88 bank
Asset Management
foundations, which collec-
tively hold €46.8bn of assets.
They have traditionally held a
high proportion of their assets
in their parent companies.
The share price collapse of
Banca Monte dei Paschi di
Siena and Banca Carige, the
Italian lenders, since 2014
have highlighted the risks of
this exposure, prompting the
government to take action.
Giorgio Righetti, director of
Acri, said bank foundations
are subsequently selling their
stakes in their parent compa-
nies and investing the money
with external asset managers
instead. He said around €8bn
of assets is in the process of
being freed up for external
fund companies.
“The divestment path could
increase the size of the man-
dates on the one hand and
their number on the other
hand,” he said.
At the start of 2015, 26 foun-
dations had completely
divested from their parent
banks, 50 had minority stakes
NEWS
in parent banks, and 12 were
still a majority shareholder of
the parent bank, the latest Acri
annual report shows.
Cosimo Musiello, a consult-
ant covering bank foundations
at Prometeia, an Italian invest-
ment advisory firm, said more
money would become availa-
ble for fund companies as a
result of the government’s
agreement.
He added that foundations
are likely to attempt to diver-
sify their market exposure by
investing in alternative fixed
income strategies, loans and
mortgages, as well as tradi-
tional bond and equity funds.
Cinzia Tagliabue, chief exec-
utive of the Italian arm of Pio-
neer Investments, one of
Europe’s largest asset manag-
ers, said her company’s inter-
action with bank foundations
has increased significantly
since the agreement was final-
ised. “[This is] a great oppor-
tunity for us,” she added.
Under the new rules, bank
foundations have two years
Asset Management
The share price of Monte dei Paschi di Siena has collapsed
since 2014 — Fabio Muzzi/AFP Photo
from now to sell excessive
listed stakes in the parent
bank and up to four years if the
shares are unlisted. The latter
holdings are harder to offload,
given the difficult climate for
Italian banking.
These holdings have already
caused serious problems for a
number of foundations linked
to struggling Italian banks.
Since autumn 2015, the gov-
ernment has restructured four
small lenders, Banca delle
Marche, Banca Popolare
dell’Etruria, Cassa di Ris-
parmio di Ferrara and Cassa di
Risparmio di Chieti. The cost
of the restructuring was
mainly borne by bondholders
and shareholders, most of
whom were bank foundations,
whose investment turned into
a loss.
FTfm | 5
Fondazione Cassa di Ris-
parmio di Pesaro, with assets
of €218m, was left with a
worthless 22.5 per cent stake
in the capital of Banca delle
Marche.
The value of the bank’s
shares fell from €0.49 in 2013
to €0.33 in 2014, before being
completely wiped out by Ital-
ian authorities’ decision to
impose losses on investors.
The foundation is now suing
the Ministry of Economy and
Finance, as well as the bank’s
administrators.
The finance ministry said
“its reasons will be upheld in
front of the administrative tri-
bunal” and declined to com-
ment further. A court hearing
is scheduled for April 18.
Market volatility has also
proved painful for foundations
with large stakes in big banks,
such as UniCredit, whose
shares have halved in value in
one year, and Intesa Sanpaolo,
whose shares have lost one-
third of their value over the
same period.
6 | FTfm
BlackRock
caught out
by stampede
into gold
Search for security revives demand for
the yellow metal’s exchange traded
funds, writes Madison Marriage
I
t is a rare occurrence for Black-
Rock, the world’s largest invest-
ment manager, to slip up pub-
licly.
But an unexpected surge of
interest in a gold fund run by the New
York-based company, which oversees
$4.6tn of assets, caused some embar-
rassment last month.
The problem occurred after the
assets of BlackRock’s iShares Gold
Trust jumped by a fifth to $8bn in the
first two months of the year.
For most funds this would have
been a welcome development, but
the gold product uses an unusual
structure that requires it to register
shares with the US regulator before
selling them on to investors.
One Friday in March, it transpired
that BlackRock had failed to register
enough new shares with the Securi-
ties and Exchange Commission to
meet a sudden increase in demand
for the gold exchange traded fund.
This forced BlackRock to tempo-
rarily suspend the issuance of shares
for the product. The company later
published a filing with the SEC
acknowledging it could be fined by
regulators and forced to reimburse
investors who tried to buy the ETF.
The suspension was lifted in a mat-
ter of days, but competitors say the
mishap is humiliating for the world’s
largest asset manager, given there
were many signs that demand for
gold exposure was intensifying.
Share prices of gold miners have
soared 50 per cent this year, while
gold prices are up by a fifth, at $1,240
per ounce, reversing last year’s 10 per
cent fall.
The rebound came about after the
US Federal Reserve indicated it would
only implement two interest rate
rises — which are seen as negative for
gold valuations — instead of the four
investors were expecting this year.
Volatile market conditions since
the start of the year have also helped
FINANCIAL TIMES Monday 11 April 2016
THE BIG PICTURE
prop up the price of gold, which inves-
tors flock to when the global economy
appears vulnerable.
“Three months ago, gold stocks
were written off as an uninvestable
industry,” says Dan Brocklebank,
equity analyst and director at Orbis, a
$25bn fund house. “But now gold is
seen as a haven.”
He adds that the big fall in the gold
price since it hit an all-time peak of
$1,793 an ounce five years ago has
forced many gold miners to restruc-
ture and cut costs. Less gold is being
mined as a result, which is pushing
prices up.
One asset manager, speaking on
condition of anonymity, describes the
suspension of new share issuance as
“embarrassing” for BlackRock.
“There appears to have been a lack of
foresight,” he says.
Mr Ross says: “In strong equity
‘Three months ago, Gold miners recovery for gold miners awaits. markets, assets in gold ETFs come
down and people become less focused
gold stocks were written ‘It is to be hoped that Bill Howell, chairman of ECR
Minerals, a gold-focused UK on [gold] as a diversifier. Now gold
off as an uninvestable the worst has passed’ mining group, said last month: “It has become an important perform-
ance play. We have seen a surge in
industry. But now gold Investors are divided on which
is of some relief to a junior gold
exploration company like ECR that demand.[Suspending shares in an
is seen as a haven’ direction the gold price is heading the slide in the gold price appears ETF] is and should be a very infre-
in, and gold miners seem equally to have been halted and modestly quent occurrence.”
BlackRock declined to comment. uncertain about their prospects. reversed. The question on the minds of inves-
An equivalent product, State Sean Harvey, chairman of Serabi, “I am certain from experience tors now, and presumably Black-
Street’s $32bn Gold Shares trust, reg- the Brazil-focused gold miner, is that this current bear phase will Rock’s ETF team, is whether this
istered an additional 200m shares among those who recognise turn upwards in due course. As the year’s rebound is a short-term rally or
with the US regulator on the same day serious problems remain. trough bottoms out, there will be a lasting trend.
that BlackRock’s gold fund ran into In a statement published last opportunities to grow.” Mr Brocklebank believes Black-
difficulties. month, he said: “Whilst there has Robin Woodbine Parish, the Rock’s ETF blunder is a worrying
Jim Ross, vice-president of State been a rally in the gold price in the outspoken chairman of El Oro, a sign. “This is a big deal in the short
Street Global Advisors, one of Black- early part of 2016, we have in gold-focused investment company, term. It shows there has been a stam-
Rock’s biggest competitors, says reg- recent years seen similar trends in agrees better times lie ahead. pede into gold, which makes me wary.
istering these shares gave Gold Shares the first quarter with a subsequent “No doubt there will be setbacks, You have to question the sustainabil-
the ability to cope with its size almost retrenchment over the rest of the with the great ghoul Goldman ity of that demand.”
doubling overnight if required. year. [Sachs, the US bank], predicting a Analysts at Bank of America Mer-
This safety net was deemed neces- “We are therefore far from further fall [in the gold price] rill Lynch are also pessimistic. The US
sary, given the rising popularity of the complacent. The euphoria of the towards $1,100, but it is to be bank issued a note last month high-
fund. It attracted 80 per cent of the highs of 2011 and 2012 are well hoped that the worst has passed lighting its decision to lower its view
$7bn that has poured into gold ETFs behind us.” for the gold miners, even if the on gold, citing the fact that the Fed-
since the start of the year. By contrast, But others are much more travails of Anglo-American and the eral Reserve is about to start raising
gold ETFs registered small net out- optimistic that a long-term major base-metal miners continue.” interest rates, and inflation rates are
flows in 2015. falling.
FINANCIAL TIMES Monday 11 April 2016 FTfm | 7

THE BIG PICTURE

fund at Lombard Odier, the “There is definitely a lot of

Gold loses its glitter Swiss wealth and asset man- $7bn 200m scepticism and we have had a
$ per troy ounce ager, has increased the Amount poured Additional lot of false starts in the gold
into gold ETFs shares State
2000 number of gold stocks he since the start Street’s $32bn market over the past couple of
invests in from 45 to 55 over of the year Gold Shares years, but a lot of people see
the past 12 months. trust registered the need for more gold in their
1800 He says this is in response to
$8 bn on the day portfolios.
Value of BlackRock’s
the fact that gold miners “have BlackRock’s
“The gold price had a bit of a
gold fund ran
done a lot to improve business iShares Gold into difficulties correction [in March] but it
1600 practices over the past several Trust, after has held above $1,200 an
years”. assets jumped 50 % ounce, which has convinced
He adds: “It has been a long, by a fifth in Increase in some people this [rebound]
1400 the first two share prices
painful market for gold inves- months of of gold
has staying power. I could see
tors, but I think we have the year miners this year [gold] testing the $1,400 level
1200 turned a corner. later this year.”

1000
2011 12 13 14 15 16

Source: Thomson Reuters Datastream

The gold-mining Carsten Menke, commodity analyst

industry has at Julius Baer, the Swiss private bank,
been heavily agrees: “Clients have certainly
restructured increased allocations [to gold] since
Carla Gottgens/Bloomberg;
Damir Sagolj/Reuters
the start of the year as a way of insur-
ing against risks on global growth.
“We don’t see much short-term
upside for gold and the miners from
current levels. Medium to longer
term, we expect both to trend lower.
Our twelve-month price target for
gold is $1,100 per ounce, which would
cause significant headwinds for the
miners.”
But several investors believe gold
valuations have turned a corner for
good.
Arnaud du Plessis, thematic equi-
ties manager at Amundi, Europe’s
largest listed fund house, believes
‘It has been a gold prices could hit $1,400 per ounce
in 2016.
long, painful He says: “The gold-mining industry
market for gold has been heavily restructured, bring-
ing down costs and generating free
investors, but I cash flows. The potential recovery
think we have from gold miners remains significant.
Valuations are very attractive.”
turned a corner’ Joe Foster, portfolio manager on
the $115m World Gold Expertise
8 | FTfm
Risky assets chucked about by skittish markets
COMMENT
Katie
Martin
N
o, you are not imagining
it. This year feels very
long already.
One reason: markets
are hurtling from “doom
and gloom” to “muddling through” to
“abandon all hope ye who enter here”
and back again at alarming speed.
Investors don’t know if they are com-
ing or going.
The harum-scarum drops in Chi-
nese stocks at the start of this year
feels like an age ago. The calm confi-
dence in a smooth path towards
higher US interest rates has hit a pot-
hole. Oil has collapsed by 25 per cent,
rallied by 50 per cent, and dropped by
8 per cent since Christmas.
Caught in the middle, risky assets
have been chucked about violently.
Right now, risky assets, judged in
this case through emerging markets,
are doing pretty well. Some bruised
investors in this space who initially
thought the rally was the death throes
of a fatally wounded asset class are
now daring to hope that it might actu-
Offshore banking business, international crime!
Offshore banking business, international
crime!
Offshore Banking Business, happening
all the time!
It’s not an idle rumour, nor scandal talk
All of the profits are washed through
USA, Panama, New York,
Offshore banking business, You think it’s
just money that counts,
Offshore banking business, Well we’re
sure gonna come mess up your bank
accounts
“Offshore Banking Business”,
The Members, 1979
JC Carroll, a member of The Members
who wrote the song, told me he had
been inspired to create it while work-
ing as a clerk for Coutts, bankers to
the Queen, the gentry and the dis-
creet Anglophile international rich.
Think about that: the staff who
grovel before you beneath swaying
palms have been thinking for decades
of ways to get even with your kind.
ally live to see another day after all.
Emerging market bonds have ral-
lied by more than 7.5 per cent since
mid-January, judging from the
JPMorgan total return index for this
asset class. It is a similar picture in
currencies, with an abrupt rally in the
Brazilian real fuelled by, of all the
counterintuitive things, the prospect
that the government might fall. You
get the idea.
UBS, the Swiss bank, has crunched
the numbers. It points out that while
markets are not shaking about on
quitethesamescaleas2012,themood
flipsfasterthanitdid inthe past.
“Sentiment was much more per-
sistent in the pre-crisis era than in the
post-crisis era, but even considering
the sample since 2012, risk sentiment
has been getting more skittish
recently,” writes Bhanu Baweja, an
emerging-markets analyst at the
bank in London.
By UBS’s reckoning, the time
between peaks in nerves has shrunk
from nine months to a year between
2012 and 2014, to three to six months
today. That makes it very hard for
fund managers to throw their weight
behind rallies or pullbacks.
What accounts for this stroppiness?
It could be in part because markets are
losing confidence that central banks
can continue doing the heavy lifting to
But then you probably already
know that, what with the publication
of the Panama Papers this month.
There is a new urgency in the tone of
the lawyers and advisers for offshore
asset holders. The essential message
is that you are the Shah of Iran, this is
1979, and you and your money will
find yourselves hopscotching from
one unwelcoming landing place to
another.
As you will recall, the Shah ended
up in the US, which even in its most
unstable moments will probably
work out better than anywhere else.
At a price, of course. The US did not
really want to host its ex-best friend
back then, and it is acting as though it
is almost too much trouble to deal
with your money today.
If you or your clients think this is
about tax cheats or the merely middle
rich, they should think again.
The largest US banks do not really
want to take more deposits, or even
do the cursory know-your-customer
due diligence work to open new spe-
cial purpose accounts for old custom-
ers. Americans I know with legiti-
mately acquired nine- or ten-figure
investment portfolios now have to
scrounge around to open accounts in
midsize US banks.
OPINION
prop markets up. (Confidence in their
ability to support real economies
evaporatedsometimeago.)
Since Lehman Brothers collapsed,
central banks around the world have
cut interest rates more than 650
times. That is one roughly every three
working days, and if the first cut is the
Since Lehman Brothers
collapsed, central banks
around the world have
cut interest rates more
than 650 times
Those rich Americans do not have
the logistical or legal problems that
Panama Papers-related flight capital
will have in “onshoring” their money.
By next year Switzerland, along
with Luxembourg, the Channel
Islands and other European offshore
investment management centres,
will start exchanging tax information
with their counterparts.
There are a very large number of
beneficiaries, ie globalised rich peo-
ple, who have until the end of this
year to get their money safely
onshore. The one Western country
that does not have a deadline for com-
plying with the Common Reporting
Standard is the US.
Almost everyone who has non-
criminally sourced capital would like
to have at least some of it accessible
within the dollar-based clearing sys-
tem. But the clerical and legal check-
lists to set up accounts for legitimate
money have become so long that it
will take months to accomplish this
even for those willing to pay the
transaction costs.
Global investment managers are
now caught between the imperatives
of liquidity and compliance. Moving
very large amounts of legitimate
money from traditional offshore cen-
deepest, number 649 can be expected
to have at most only a marginal effect.
Granted, only a small clutch of central
banks has the power to influence glo-
bal markets, but still, even among
them, the European Central Bank and
Bank of Japan have wielded the knife
thisyear,withquestionable results.
Concerns about the damage
inflicted on banks by deeply sub-zero
interest rates are rising. It could be
that, at a certain point, rate cuts
become self-defeating. That is not to
say it is necessarily not worth trying,
nor that the hard-money crowd had
any solidly better ideas in the depths
of the financial crisis, but still, it is
The essential message is
that you are the Shah
of Iran [and] this is 1979
tres such as Switzerland will trigger
customer deposit limits at the large
banks that can deal with the logistics.
At the same time, only large accounts
canaffordtopaythetransactioncosts.
This will, within the next two years
or so, lead to a one-time transfer from
the global rich to the staff and owners
of US financial institutions. But that
will be followed by a long drought for
newbusiness,astheglobalwealththat
did notmove quicklyenoughgetsslot-
ted into endless holding patterns in
the mid-Atlantic ormid-Pacific.
While the US populists in both the
Republican and Democratic parties
FINANCIAL TIMES Monday 11 April 2016
probably politicians who have to pick
up the baton now, and good luck to us
all with that.
In a nutshell: these are markets
learning to cycle without stabilisers,
and they are falling over a lot.
Disarmingly, surprises could be
positive as well as negative. Eurozone
government bonds are pricing in
rock-bottom or negative inflation for
years to come. Germany’s super-safe
10-year bond yields seem to be head-
ing to zero (again), the flip side of sky-
high prices and typically a sign of
highly elevated nerves. It would take
only a flicker of optimism for these
bonds to tank and for investors to lose
years worth of returns in the process.
Another possible input into the
mood swings is that serious hedge
funds have been so stung by ebbs and
flows in market confidence of late
that they are sitting on the sidelines,
leaving markets more to the whim of
algorithmic traders and flighty short-
termists.
The truth is, no one knows, and/or
there is no single explanation for this
skittishness. One near-certainty,
though: if the timings outlined by
UBS hold true again, we are probably
only a month or so away from the
next pullback. Hold on to your hats.
Katie Martin is deputy editor of FastFT
are unlikely to take over either the
presidency or control of both sides of
Congress, they have already suc-
ceeded in slowing legitimate capital
flows. Keep in mind that both Presi-
dents Calvin Coolidge and Herbert
Hooverweresincereinternationalists,
and that between them they presided
over the passage and implementation
of catastrophically destructive anti-
free-trade legislation.
Rich people and their investment
managers are not politically appeal-
ing. Most of the young voters I know
have no idea what Goldman Sachs is,
but they know they do not like it or
anything that might resemble it. They
may be relentlessly multicultural but
are aggressively opposed to large
international capital transactions.
It will probably take decades for
them to realise the internal contra-
dictions of their core beliefs. That is
why their political leaders will react
to the negative feedback loop of their
bank and capital flow regulations by
imposing even more regulations.
Think of those immigration lines at
US airports. There is one lane for “US.
citizens, green card holders and
Canadians”. There is another, usually
much longer lane, for everyone else.
Which line is your money in?
FINANCIAL TIMES Monday 11 April 2016
Interest rates
might not stay low
for much longer
THE LAST WORD
John
Plender
T
he state of Tata Steel
UK’s pension fund, as the
company tries to unload
its British operations,
highlights the extraordi-
nary uncertainty surrounding the
valuation of pension fund liabilities in
a world of low or negative nominal
bond yields. The former British Steel
pension scheme reportedly has
£15bn of assets and a deficit of
£485m. That deficit is a gigantic poi-
son pill for any buyer of the busi-
nesses. If a way can be found to square
EU rules on state aid, there would be a
case for government underpinning
via the Pension Protection Fund. But
how onerous would that be for the
British taxpayer?
It is impossible to know. In the
short and medium term, the defla-
tionary forces in the world are such
that the actuarial discount factor
used to value the liabilities will
Tata Steel is a heavy burden for the Pension Protection Fund
VIEWPOINT
John
Ralfe
T
ata Steel’s decision last
month to offload its UK
operation has raised seri-
ous concerns about the
fate of the UK pension
scheme attached to Europe’s second-
largest steel producer.
Whether Tata Steel’s lossmaking
UK plants are sold or closed piece-
meal over the next few months, the
£15bn British Steel Pension Scheme,
with 130,000 members, will remain
with the company.
The scheme looks certain to end up
in the Pension Protection Fund, the
UK lifeboat for capsized corporate
pension funds.
This can be avoided only if another
Tata Steel company, perhaps the
Indian parent, guarantees the British
remain at historically depressed lev-
els, keeping the liabilities high.
Where the trajectory of interest rates
is concerned, the current market
mantra is lower for longer. Yet the
British Steel fund saga provides an
opportunity to explore potential
flaws in the conventional wisdom and
the circumstances in which interest
rates might rise sooner than investors
or central banks expect.
The starting point is the global sav-
ings glut, which is an important cause
of the long decline in bond yields
since the mid-2000s. China and Japan
explain much of the glut and it is not
difficult to put a case that their behav-
iour will change.
In China, official reserves have
been running down. Having peaked
at close to $4tn in 2014 they fell to
$3.2tn this February.
The economy is shifting from
excessive reliance on investment and
exports towards consumption.
Because Beijing fears the social insta-
bility that could come from a bumpy
transition, this will not be rapid. Yet
the current course, involving contin-
uing investment in industries with
surplus capacity — the prime cause of
Tata’s woes — and ever-increasing
Steel Pension Scheme or injects at
least £2bn to allow all pensions to be
bought out by an insurance company.
Given Tata Steel’s wish to get out of
the UK, as well as its weak finances —
it is junk rated — this cash injection
seems unlikely.
The suggestion that the UK govern-
ment could somehow “nationalise”
theBritishSteelPensionSchemeisjust
wishful thinking. This would breach
European state aid rules and it is not
clear why the scheme’s members
shouldgetpreferentialtreatment.
Can the PPF cope with the huge size
of the British Steel Pension Scheme?
If the pension fund had the average
PPF deficit of 20 per cent, the loss for
the PPF would be £3bn, wiping out
most of its reserves.
But the good news is that the British
Steel Pension Scheme is much better
funded than average and even had a
surplus against the PPF measure in
March 2014. Although its funding will
be rather worse today, it may still
have a PPF surplus or have moved to a
modest percentage deficit.
OPINION
Demographics are about to reverse the disinflationary trend — Reuters
debt is not sustainable. Change is
inevitable.
Japan is trickier. It suffers from
underconsumption and excessive
corporate saving. Devaluation of the
yen is the only part of Abenomics that
has had much impact. Yet that has
perversely benefited the corporate
sector at the expense of households.
A deflationary mentality is
There will be friction
between workers, who
have labour market
power, and pensioners,
who have political clout
If there is a PPF loss, it will be a
small percentage of the scheme’s lia-
bilities, but due to its sheer size
(£15bn), even a small percentage is a
huge absolute loss.
The PPF’s largest ever single loss is
around £300m, which equates to a
deficit for the Tata scheme of just 2
per cent. If the scheme’s deficit is 5
per cent, which is possible, the PPF
loss would be a whopping £750m.
If the pension fund has no deficit, it
will leave the PPF after the lengthy
assessment period and either run as a
closed scheme, or gradually buy
annuities from the bulk insurance
market. This will create prolonged
indigestion because of its size.
Even with PPF compensation, the
130,000 British Steel Pension Scheme
members will lose out. End to end,
they will receive an average of 20 per
cent less than their pension promise.
For the 45,000 members who have
not yet retired, this means a 10 per
cent reduction in their promised pen-
sion, but no general reduction for the
85,000 pensioners. Some of those
entrenched and too little of the struc-
tural reform that is needed to raise
the growth rate is happening. There is
nonetheless a point at which even the
Japanese, when in a hole, will stop
digging and address the real problem.
Dissaving in these two countries
could contribute to more robust glo-
bal economic growth. It is possible,
too, that as central banks’ unconven-
tional measures show a diminishing
capacity to stimulate growth, devel-
oped-world governments will finally
seize the opportunity presented by
rock-bottom interest rates to invest in
badly needed new infrastructure. A
higher-growth world would, inciden-
tally, resort less to competitive deval-
uation and the currency wars that
who took early retirement, however,
will see their pensions stopped until
they reach the scheme’s normal
retirement age of 65, and then
reduced by 10 per cent.
Under PPF rules, annual inflation
increases are also reduced for all
members. Older members, including
widows, with pensions earned before
1997 will receive no annual inflation
increases at all.
The Pensions Regulator has legal
powers to make claims against com-
panies in the Tata Steel group that are
considered to be “connected parties”,
which could include Tata Steel
Europe, all the way up to Tata Steel
10 %
Possible reduction in pension for the
45,000 members of the British Steel
scheme who have not yet retired
FTfm | 9
have been a big driver of the move to
negative interest rates.
The final point is that demograph-
ics are about to reverse the disinfla-
tionary trend that has been in place
since the 1980s. The ratio of the old to
people of working age is set to deterio-
rate, so there will be friction between
workers, who have labour market
power, and pensioners, who have
political clout. If pensioner power
inflicts higher taxes on workers to
support today’s relatively generous
levels of pensions and healthcare,
workerswilldemandhigherwages.
Among the forces pushing interest
rates higher will be employers’ desire
to invest to restrain labour costs and a
decline in savings as a larger retired
population spends more of its
income. That will all bring us back to
a world of less marked inequalities of
income and wealth, as higher interest
rates restrain asset prices and the
share of labour in national income
rises at the expense of profits.
There is enough here to indicate
how interest rates might revert to
something closer to the historical
average and make pension liabilities,
including those of the former British
Steel scheme, more manageable. Yet
asset prices may take a hit. And the
timing of such a move is impossible to
predict.
A further worry is that the transi-
tion could be painful, notably in
China, where rebalancing presents a
huge challenge, and Japan, where the
retreat from extreme monetary pol-
icy could be very messy. But do not
discount the possibility that rates
could be lower for less long than the
markets now assume.
John Plender is a columnist at the FT
Limited in India.
The strength of the regulator’s case
depends on the particular financial
and legal relationships between Tata
Steel UK and other Tata Steel compa-
nies, and success is far from certain.
A claim would take years to work
through the various UK and overseas
courts, but the amounts at stake — at
least £2bn — are so huge that the reg-
ulator will be prepared to spend as
much time and money as it takes.
The PPF is set up to handle a large
number of small losses, plus the occa-
sional big hit. As a matter of good for-
tune, the British Steel Pension
Scheme is unusually well funded, so
the PPF will be able to cope.
Any other large scheme with a typi-
cal level of underfunding could easily
overwhelm the PPF, forcing it to raise
the levies paid by other pension
schemes. The PPF could even cut
back the level of compensation it pays
to existing pension scheme members.
John Ralfe is an independent
pension consultant
10 | FTfm
BlackRock tightens its grip on Europe
INVESTMENT STRATEGY
Squeeze on smaller
managers as larger rivals
gather most business
CHRIS FLOOD
BlackRock topped the leaderboard
for fund sales in Europe for a third
successive year in 2015, with the
world’s largest investment manager
significantly outpacing its rivals in
terms of asset growth.
The US asset manager’s net inflows
in Europe jumped 75 per cent to just
over €51bn last year, helped by
record-breaking growth for its
iShares passive fund business.
The scale of BlackRock’s lead was
illustrated by the fact that its net fund
sales were larger than the combined
inflows of its three closest rivals,
Intesa Sanpaolo, Deutsche Asset
Management and UBS, the European
banks.
In contrast, European managers
with large exposure to emerging mar-
kets, such as Aberdeen Asset Man-
agement and Ashmore, suffered a
torrid time as investors retreated
from developing economies.
Outflows from emerging market
funds also hit JPMorgan Asset Man-
agement. Ranked as the third-best
selling manager in Europe in 2014,
JPMorgan fell down the rankings to
17th spot after registering a 60 per
cent decline in its fund sales last year.
Withdrawals from emerging mar-
ket funds were driven mainly by con-
cerns about weakening economic
growth in China, but an unexpectedly
large fall in the price of crude oil and
low interest rates also helped to drag
overall mutual fund sales down on
both sides of the Atlantic in 2015.
Fund sales across Europe dropped
to €285bn last year, a decline of nearly
a quarter on 2014, according to figures
given exclusively to FTfm by Broad-
ridgeFundFile,thedata provider.
However, the slowdown in Europe
was muted compared with the US,
where net fund inflows fell 72 per cent
to €69bn as the fall in oil prices led to
substantial outflows from both equity
and bond funds with exposure to the
energy sector.
Alex Hoctor-Duncan, head of retail
inEuropeforBlackRock,saidashiftby
private banks and fund platforms
towards recommending a smaller
number of managers to investors
helpedlargerassetmanagerslastyear.
“Many distributors are looking to
reduce the number of fund managers
they employ, working with their
remaining partners in a deeper, more
intensive way,” he said.
Smaller investment companies in
Europe won less than a tenth of the
new cash entering the European fund
industry last year, while the 25 largest
managers ranked by assets secured
92 per cent of the new inflows.
FINANCIAL TIMES Monday 11 April 2016
QUARTERLY REVIEW
individual funds of 2015 showed
Standard Life’s Global Absolute
Return Strategies (Gars) claimed top
spot by some distance, with inflows of
€10.5bn in spite of concerns that its
size could affect future returns.
Investors’ growing appetite for low-
cost passive products was demon-
strated by State Street Global Advi-
sors’ UK equity tracker claiming top
spot as the bestselling equity fund in
Europe, with net inflows of €4.3bn.
A relative newcomer also outshone
more established rivals. The Wood-
ford Equity Income fund attracted
inflows of €4.2bn and was the second-
best selling equity fund of last year.
The sales figures were a reflection of
the popularity of Neil Woodford, the
highly regarded UK manager who set
up his own investment house in 2014
after leaving Invesco Perpetual.
In the final quarter of 2015, net sales
of European mutual funds recovered
to€49bn,havingdroppedto€6.5bnin
thepreviousthreemonths.
The efforts by the European Cen-
tral Bank to support economic recov-
BlackRock’s The squeeze on smaller managers Mauro Baratta, joint chief execu- ery through its bond-buying pro-
net inflows in was much more severe than in 2014, tive of MacKayWilliams, the London-
‘Many gramme provided a modest boost to
Europe jumped when they won around one-third of based consultancy, said bank-owned distributors investor confidence that was
75 per cent to new business. asset managers in Italy were able to reflected in a recovery in cross-bor-
just over BlackRock was also helped by the exploit their distribution networks to
are looking der fund sales.
€51bn last year
Richard Levine/Alamy
fact that emerging market exposure attract retail clients. to reduce Sales in the “international” cate-
accounts for a smaller share of its “Retail investors in Italy remain gory — defined by Broadridge as
overall assets, so it was less affected conservative in outlook, so pure
the number funds that do not generate four-fifths
by withdrawals than some of its com- equity and more risky fixed income of fund of their sales from a single European
petitors. products have limited appeal. How- market — registered positive inflows
Intesa Sanpaolo, Italy’s second- ever, bank-owned providers have
managers of €38bn, compared with net with-
largest bank, held on to second spot enjoyed success in encouraging cli- they drawals of €14bn in the three months
with fund sales of €19.9bn in 2015, an ents to move into asset allocation to the end of September.
increase of nearly a fifth. It was products that are very low risk,” said
employ’ BlackRock retained its position as
helped by record inflows into Euri- Mr Baratta. the top-selling manager in the inter-
zon, its retail-focused fund arm. Sales figures for the most popular national category, with net inflows of
just under €14bn, an increase of 43
per cent on the previous quarter.
Active v passive: net sales Mr Hoctor-Duncan said: “With the
€bn low interest-rate environment, there
Active 300 was strong interest from clients in
Index Tracking unconstrained fixed income strate-
ETF gies as well as demand for income-
200 orientated equity strategies.”
Fund flows at country level were
100 mixed. Although Germany experi-
encd an improvement in fund sales in
the final quarter, there was a slow-
0 down in France, Italy and Switzer-
2012 13 14 15 land. The UK registered net with-
Excludes money market funds drawals of €1.3bn, reversing the posi-
Source: Broadridge
tive sales figures in the previous quar-
ter. Investors responded to concerns
Top-selling fund groups in Europe Top-selling funds in Europe about falling earnings and the threat
2015 (€bn) 2015 (€bn) of cuts in dividends for mining and oil
companies.
BlackRock 51.1 Standard Life Gars 10.5 In Asia, Chinese funds registered
Intesa Sanpaolo 19.9 JPMorgan Global Income 5.5 net inflows of $149bn in the fourth
Deutsche AM 16.4 Invesco Perpetual Global Targeted Returns 5.4 quarter of 2015, an increase of 5.5 per
UBS 13.8 SSgA UK Equity Tracker 4.3 cent on the previous three months.
Credit Suisse 13 Woodford Equity Income 4.2 Money market funds that offer bet-
Vanguard 11.6 Nordea Stable Return 4.2 ter interest rates than bank deposits
Nordea 11.3 GAM Global Multi-Asset Income 4 continued to dominate sales. The ele-
Allianz 11 BlackRock Fixed Income Strategies 3.6 vated levels of volatility that affected
Union Investment 10.6 Generali Fortuna Invest Risk Control 3.4 China’s stock market throughout
State Street 10.4 Pimco GIS Income 3.3 2015 may have also encouraged more
local investors to switch into the rela-
Source: Broadridge tive safety of money funds.
FINANCIAL TIMES Monday 11 April 2016 FTfm | 11

QUARTERLY REVIEW

Broadridge market progress barometer

International
Assets Market leaders Net sales split
At end Dec 2015 Total €4.1tn Top 10 Groups Assets Est net sales Oct-Dec 2015 (€bn) Prior quarter Latest quarter
(Dec 2015) (Q4 2015)
Rank Master groups €m €m 50
Other €192bn 5% Bonds
1 BlackRock 404,514.6 13,956.4
Money market 40
2 Nordea 50,876.4 2,935.7
enhanced €9.4bn 0%
3 Allianz GI 47,913.0 2,590.4 30
€701bn
17% €1,209bn 4 Vanguard 71,807.8 2,364.1
Money market 20
30% 5 Standard Life 24,770.0 2,264.6
€364bn 6 Fidelity 94,221.3 2,053.2 10
9% 7 Aviva Group 12,254.9 1,970.7
Mixed Assets 0
8 Natixis 25,738.6 1,778.7
9 Threadneedle 20,849.9 1,760.0 -10
€1,582bn 10 Henderson Global 28,387.6 1,712.6
39% Equities -20
Total top 10 781,334.2 33,386.4
Total international 3,347,747.2 31,780.5 -30
Top 10 as % of all master groups 23% n.a. Bonds Equities Mixed Money Enhanced Others
market money
Notes: funds of funds are excluded to avoid double-counting. Sectors are based on Broadridge pan-European classification system market
Investor preference (excluding liquidity products) Top selling sector for latest quarter: Equities Europe €8.0bn Bottom selling sector for latest quarter: Bonds Flexible -€6.1bn

Business development in Europe’s mutual fund markets Net sales contribution to asset growth Latest quarter
Net sales Net sales Net sales Net sales Fund assets Asset growth Large countries Market performance Net sales Asset
(latest Q) (Q3 2015) (Q2 2015) (Q1 2015) (Sep 15) (latest Q) €bn growth
Market €m €m €m €m €m €m -20 0 20 40 60 80 100 120 140 160 (€m)
International 31,780.5 -13,965.4 60,036.1 80,625.3 3,347,747.2 163,056.8 International 163,056.794
Germany 6,937.0 5,119.3 5,129.6 13,777.2 543,355.4 21,216.3 UK 45,544.684
Sweden 3,306.1 -429.0 389.1 2,782.1 242,400.5 18,842.3 Sweden 18,842.278
Switzerland 3,023.4 5,021.8 4,424.2 10,194.2 400,864.5 15,734.1 Germany 21,216.295
Italy 2,880.7 6,921.8 14,890.3 17,558.2 402,109.6 9,528.0 Switzerland 15,734.059
Belgium 1,488.6 -2,137.8 233.1 3,236.3 107,234.5 3,885.2 France 11,048.789
Spain 1,048.9 -1,542.1 -4,943.6 3,497.3 150,242.6 794.6 Italy 9,527.961
France 1,022.6 2,019.9 948.3 2,467.8 325,670.3 11,048.8 Denmark 3,178.068
Finland 749.1 -143.4 -428.2 683.8 65,497.9 3,940.7 Finland 3,940.671
Turkey 585.3 212.8 -53.2 351.8 4,675.5 446.7 Netherlands 2,690.848
Czech Republic 280.7 128.4 209.5 211.5 7,124.6 399.4 Norway 1,021.410
Russia 81.1 4.3 -3.0 -45.8 1,383.5 80.3 Belgium 3,885.218
Hungary 70.2 -111.3 5.7 89.1 7,323.1 66.6 Austria 766.649
Romania 15.9 -64.9 14.3 197.6 3,634.8 -32.0 Spain 794.612
Slovenia 13.7 8.3 34.7 78.4 2,088.8 114.6
Bulgaria 10.8 -1.3 1.8 13.3 236.5 14.6 Small countries Market performance Net sales Asset
€m growth
Estonia 6.0 -12.9 -14.6 0.2 201.0 9.7 -800 -600 -400 -200 0 200 400 600 (€m)
Croatia 5.0 22.7 94.1 274.3 1,015.0 22.3
Czech Republic 399.43
Netherlands 1.4 388.1 1,516.4 2,435.0 64,095.1 2,690.8
Slovenia 114.60
Lithuania -0.0 -0.6 0.3 -0.0 84.5 3.3 Greece -8.25
Ukraine -0.0 -0.1 -0.0 -0.1 2.0 -0.4 Liechtenstein -25.39
Luxembourg -4.0 2.3 -1.4 6.5 202.4 0.1 Malta 31.70
Latvia -4.6 1.1 -1.1 14.2 120.4 -1.3 Slovakia 13.46
Slovakia -11.9 51.4 104.4 79.0 3,061.2 13.5 Croatia 22.26
Malta -14.9 36.1 62.6 20.9 1,960.5 31.7 Luxembourg 0.11
Portugal -21.0 -326.5 -186.2 -3.6 9,017.7 -122.5 Bulgaria 14.61
Liechtenstein -72.7 9.2 40.7 -47.5 1,302.6 -25.4 Estonia 9.75
Greece -84.0 -21.7 36.3 -67.6 4,114.6 -8.2 Lithuania 3.32
Denmark -236.7 13.8 2,669.8 -476.1 98,582.1 3,178.1 Latvia -1.30
Poland -344.7 -369.9 129.9 435.4 20,581.1 -628.5 Ukraine -0.37
Austria -624.0 -586.6 245.3 711.1 60,184.2 766.6 Russia 80.26
United Kingdom Hungary 66.59
-1,267.4 6,298.6 7,781.4 -3,079.1 1,070,986.7 45,544.7
Romania -32.02
Norway -1,643.4 -44.2 -947.2 1,429.0 73,363.5 1,021.4
Portugal -122.51
Total 48,977.6 6,502.5 92,419.2 137,449.6 7,020,463.9 301,632.8
Turkey 446.70
Analysis is based on ‘long-only’ funds and therefore excludes money market funds. Data excludes fund of funds
to avoid double-counting. A fund is allocated to a market if more than 80% of its assets are sourced from that country. Poland -628.54
International includes all European funds that derive less than 80% of their assets from any one country

Rising/falling sectors in Europe Top selling new fund launches in Europe

Fund Est net sales
Estimated net sales (€bn) Latest quarter (Oct-Dec 15) launch date (latest Q)
Asset Equities Equities Asset Equities Rank Master group Fund Name Sector (2015) €m
Allocation Euroland Alternative Allocation Europe
1 Cr Suisse PUB Equities Emerging Markets 2 Equities Emerging Markets 13 Nov 1,337.2
Alternative
6 2 Cr Suisse PUB Equities Emerging Markets Equities Emerging Markets 13 Nov 1,262.6
3 Santander Bel Canto Sicav Turandot Mixed Assets Balanced 20 Oct 755.0

4 4 BBVA Group BBVA Global Funds Strategic Allocation Asset Allocation 3 Dec 749.7
5 Cr Suisse CS Index Fund (Lux) Government Bonds EUR Bonds EUR 16 Nov 693.6
6 Old Mutual Old Mutual Absolute Return Government Bond Bonds Alternative 7 Oct 620.6
2
7 Santander Santander 100 Valor Creciente, FI Guaranteed Fund 16 Dec 458.9
8 Celios Master TGV Celios Avocado Asset Allocation 23 Dec 457.5
0
9 Pioneer Pioneer Structured Solution Fund - Progetto Cedola 11/2020 Target Maturity Other 9 Nov 455.1
Jun Jul Aug Sep Oct Nov Dec
2015 10 Nordea Nordea 1 - GBP Diversified Return Asset Allocation 13 Oct 429.3
Rising sectors were the top 5 sectors in the last 6 months in terms of estimated Total 7,219.6
net sales in Europe. Data exclude money market funds but include funds of funds
so that these can be illustrated if they are in the ascendancy Data include retail investment funds only. Excludes money market funds because of distortions from institutional liquidity funds Source: Broadridge FundFile
12 | FTfm FINANCIAL TIMES Monday 11 April 2016

FTfm

Guide to data
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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
reader.enquiries@ft.com. The fund prices
published in this edition along with additional
information are also available on the Financial
Times website at www.ft.com/funds. Charges
for this advertising service are based on the
number of lines published and the
classification of the fund. Please contact
data@ft.com or call +44 (0)20 7873 3132.
The funds published on these pages are
grouped together by fund management
company.
Prices are in pence unless otherwise indicated
and those designated $ with no prefix refer to
US dollars. Yields % allow for buying expenses.
Prices of certain older insurance linked plans
are subject to capital gains tax on sales. Some
Property Unit Trusts are limited to investors or type of holder. hours; # 1701 to midnight. Daily dealing prices move to forward pricing at any time.
who are UK tax exempt.
All dealings are subject to individual Trust
Deed rules. The sale prices for these funds are
Buying price: Also called offer price. The price
at which units in a unit trust are bought by
investors. Includes manager’s initial charge.
are set on the basis of the valuation point, a
short period of time may elapse before prices
become available.
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
estimates. Selling price: Also called bid price. The price Yield: Funds comprising mainly of bonds no definite price in advance of the purchase or
Guide to pricing of Authorised Investment at which units in a unit trust are sold by normally quote a gross redemption yield after sale being carried out. The prices appearing in
Funds. investors. all charges but before tax has been deducted. the newspaper are the most recent provided
Compiled with the assistance of the IMA. The Single price: Based on a mid-market valuation Funds mainly made up of equities normally by the managers/operators. Scheme
Investment Management Association, 65 of the underlying investments. The buying quote a yield representing the estimated particulars, prospectus, key features and
Kingsway, London WC2B 6TD. +44 (0)20 7831 and selling price for shares of an OEIC and annual payout net of tax for basic rate reports: The most recent report, scheme
0898. All funds within this section, whether units of a single priced unit trust are the same. taxpayer. For further information contact the particulars, prospectus and key features
OEICs or unit trusts are authorised in the UK Exit Charges: The letter E denotes that an management company. document may be obtained free of charge
by the Financial Services Authority. The prices exit charge may be made when you sell units, Historic pricing: The letter H denotes that the from fund managers/operators.
quoted should only be used as a guide. contact the manager/operator for full details. managers/operators will normally deal on the * Indicates funds which do not price on
OEIC: Open-Ended Investment Company. Time: The time shown alongside the fund price set at the most recent valuation. Fridays.
Similar to a unit trust but using a company manager’s/operator’s name is the time of the The prices shown are the latest available Other explanatory notes are contained in the
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Share Classes: Separate classes of share are another time is indicated by the symbol dealing levels because of an intervening
denoted by a letter or number after the name alongside the individual unit trust/OEIC name. portfolio revaluation or a switch to a forward Prospectus data, price histories, charges and
of the fund. Different classes are issued to The symbols are as follows: ✠ 0001 to 1100 pricing basis. The managers/operators must risk analytics on the funds within these pages
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Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield
Candriam Qt-Eqts USA Cap $ 2330.13 - -31.71 0.00 Crediinvest SICAV Big Cap Value € 14.36 - -0.12 0.00

ACPI Global UCITS Funds Plc (IRL) Ashmore Sicav (LUX) Bank of America Cap Mgmt (Ireland) Ltd (IRL) Crediinvest SICAV US American Value $ 17.82 - -0.20 0.00
www.acpishard.com 2 rue Albert Borschette L-1246 Luxembourg Regulated
Regulated FCA Recognised Global Liquidity USD $ 1.00 - 0.00 0.55 Candriam Investors Group (BE) Crediinvest SICAV Sustainability € 14.55 - 0.05 0.00
ACPI Emerging Mkts FI UCITS Fund USD A $ 111.58 - -0.13 0.00 Ashmore SICAV Emerging Market Debt Fund $ 92.44 - -0.16 8.87 FCA Recognised
Candriam Sust Euro Bonds Cap € 367.46 - -0.12 0.00
ACPI Global Credit UCITS Funds USD A $ 14.16 - 0.02 0.00 Ashmore SICAV Emerging Market Frontier Equity Fund $ 138.65 - 0.42 1.20
Barclays Investment Funds (CI) Ltd (JER) Candriam Sust North America Cap $ 39.69 - -0.44 0.00 DAVIS Funds SICAV (LUX)
ACPI Global Fixed Income UCITS Fund USD A $ 155.02 - 0.23 0.00 Ashmore SICAV Emerging Market Total Return Fund $ 80.86 - -0.17 6.16 39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Cheyne Capital Management (UK) LLP (IRL) Regulated
FCA Recognised Candriam Sust World Cap € 24.76 - -0.18 0.00 Regulated Davis Value A $ 37.78 - -0.53 0.00
Q ACPI India Fixed Income UCITS Fund USD A $ 10.19 - -0.01 0.00 Ashmore SICAV Global Small Cap Equity Fund $ 123.96 - -0.35 0.00 Bond Funds Cheyne Convertibles Absolute Return Fund € 1314.00 - -1.56 0.00
Sterling Bond F £ 0.46 - 0.00 3.24 Davis Global A $ 27.86 - -0.29 0.00
ACPI India Fixed Income UCITS Fund USD A3 $ 86.88 - -0.12 0.00 EM Mkts Corp.Debt USD F $ 84.23 - -0.08 9.51 Cheyne Global Credit Fund € 118.55 - -0.13 0.00
Candriam Investors Group
ACPI International Bond UCITS Fund USD A $ 18.56 - 0.07 0.00 EM Mkts Loc.Ccy Bd USD F $ 80.23 - -0.25 3.15 Other International Funds
Cheyne European Mid Cap Fund € 1133.08 - 4.78 0.00
Barings (Luxembourg) (LUX) Candriam Eqts L Emerging Mkts Cap € 599.06 - 1.04 0.00
FCA Recognised
Russia A GBP Inc F £ 27.92 - 0.04 0.00 Candriam Eqts L Euro 50 Cap € 474.25 - -5.55 0.00
ACPI Select UCITS Funds PLC (IRL) Cheyne Capital Management (UK) LLP
Regulated Candriam Eqts L Europe Cap € 875.60 - -6.63 0.00 Other International Funds
ACPI Balanced UCITS Fund USD Retail $ 13.96 - 0.08 0.00 Cheyne European Event Driven Fund € 135.55 - 2.66 0.00
BlackRock (JER) Candriam Eqts L Japan Cap ¥ 17709.00 - 209.00 0.00
ACPI Balanced UCITS Fund EUR Retail € 10.48 - 0.05 0.00 Regulated Cheyne Real Estate Credit Holdings Fund £ 164.38 - 0.83 0.00 Deutsche Asset Management UK Ltd. (LUX)
BlackRock UK Property £ 41.76 - 0.01 3.36 Candriam Bonds Credit Opportunities € 192.53 - 0.17 0.00 Tel: + 44 207 545 9070 www.dws.co.uk
ACPI Balanced UCITS Fund GBP Retail £ 10.63 - 0.05 0.00 Cheyne Real Estate Credit Holdings Fund III £ 112.89 - 0.49 0.00 FCA Recognised
Aspect Capital Ltd (UK) Blackrock UK Long Lease £ 1076.18 - -4.15 0.00 Candriam Bds Euro Conv. Classic Cap € 3479.59 - -7.94 0.00 Deutsche Invest I Africa GBP RD1 Inc £ 125.93 125.93 1.10 1.18
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Other International Funds Cheyne Real Estate Debt Fund Class A1 £ 131.50 - -0.63 0.00
Aspect Diversified USD $ 433.75 - -2.24 0.00 BLK Intl Gold & General $ 5.43 5.73 0.13 0.00 Candriam Bds Euro Corp ExFin Cap € 167.22 - 0.15 0.00 Deutsche Invest I Chinese Eq.GBP RD Inc £ 102.81 102.81 0.20 1.29
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - Cheyne Total Return Credit Fund - December 2017 Class $ 145.05 - 9.20 0.00
Aspect Diversified EUR € 260.21 - -1.47 - Candriam Bds Euro Gov.Cl.Cap € 2329.08 - -4.46 0.00 Deutsche Invest I Conv.GBP RDH Inc £ 160.77 160.77 0.38 1.58
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Cheyne Total Return Credit Fund 2020 $ 89.96 - -10.82 -
Aspect Diversified GBP £ 133.71 - -0.71 0.00
BONHOTE Candriam Bds Euro High Yield Cap € 1020.33 - 0.05 0.00 Deutsche Invest I Global Agrib.GBP LD DS Inc £ 87.12 91.71 0.23 0.62
ACPI Horizon UCITS Fund $ 12.56 - -0.03 0.00 Other International Funds
Aspect Diversified CHF SFr 123.96 - -0.72 0.00 Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6432.00 - -81.00 2.35 Candriam Bds Euro High Yield R Cap € 113.52 - 0.00 0.00 Deutsche Invest I Top Asia GBP RD Inc £ 155.21 155.21 0.81 1.07
Cohen & Steers SICAV (LUX)
Aspect Diversified Trends USD $ 129.34 - -0.14 0.00 Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9453.00 - 53.00 0.96 Candriam Bds Euro Long Term Cap € 8319.22 - -11.25 0.00 Regulated
European Real Estate Securities € 22.6652 - -0.0642 1.81
Aspect Diversified Trends EUR € 129.29 - -0.15 0.00 Candriam Bds Euro Sh.Term Cap € 2084.01 - -0.36 0.00
Europ.RealEstate Sec. IX € 30.3973 - -0.0861 0.00
Braemar Group PCC Limited (GSY) Candriam Bds International Cap € 1016.73 - 1.71 0.00
Aspect Diversified Trends GBP £ 134.71 - -0.15 0.00
Regulated Gbl Listed Infrastructure I $ 10.3148 - -0.0163 -
UK Agricultural Class A £ 1.23 - -0.01 0.00 Candriam Bds USD Cap $ 961.69 - 3.65 0.00
Gbl Listed Infrastructure IX $ 10.3596 - -0.0164 -
Algebris Investments (IRL) Atlantas Sicav (LUX) UK Agricultural Class B £ 1.35 - -0.02 0.00 Candriam Total Return Bond Cap € 131.77 - -0.05 0.00
Regulated Regulated Gbl RealEstate Sec. I $ 11.1024 - -0.0004 1.60 Dodge & Cox Worldwide Funds (IRL)
Algebris Financial Credit Fund - Class I EUR € 130.85 - -0.28 0.00 American Dynamic $ 3436.87 - 76.95 0.00 Student Accom Class B £ 0.55 - -0.17 0.00 6 Duke Street,St.James,London SW1Y 6BN
Gbl RealEstate Sec. IX $ 13.2187 - -0.0006 0.00 www.dodgeandcox.worldwide.com 020 3713 7664
Algebris Financial Income Fund - Class I EUR € 107.46 - -0.69 0.00 American One $ 3259.25 - 49.22 0.00 FCA Recognised
Dodge & Cox Worldwide Funds plc - Global Bond Fund
Algebris Financial Equity Fund - Class B EUR € 79.95 - -1.73 - Bond Global € 1379.17 - -13.39 0.00
EUR Accumulating Class € 11.48 - 0.01 0.00
Algebris Asset Allocation Fund - Class B EUR € 94.03 - -0.65 - Eurocroissance € 859.25 - 6.10 0.00
EUR Accumulating Class (H) € 9.31 - -0.01 0.00
Far East $ 640.78 - -6.57 0.00
Castle Fund Administrators Limited (GIB) EUR Distributing Class € 10.76 - 0.01 4.10
Amundi Funds (LUX) 932 Europort, Gibraltar GX11 1AA
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 Brown Advisory Funds plc (IRL) Tel: +350 200 40466 EUR Distributing Class (H) € 8.72 - -0.01 4.01
www.amundi-funds.com Atlantis Investment Management Ltd (IRL) http://www.brownadvisory.com Tel: 020 3301 8130 www.castlefundadministrators.com Coronation Fund Managers
2nd Floor, 13 St Swithin's Lane, London EC4N 8AL FCA Recognised +44 (0)20 7389 8840 www.coronation.com GBP Distributing Class £ 10.60 - 0.04 3.83
FCA Recognised Other International Funds
Bd. Euro Corporate AE Class - R - EUR € 18.78 - 0.01 0.00 www.atlantis-investmenet.com, Tel: 0207 877 3377 Brown Advisory US Equity Growth Fund USD B $ 22.27 - -0.29 0.00 Inspirato Fund No. 2 PCC Limited - Cell A £ 41348.48 - 131.66 0.00 Enquiries: +27 (21) 680 2837/2457 coronationfunds@coronation.co.za
GBP Distributing Class (H) £ 8.82 - -0.01 4.03
Regulated Other International Funds
Bd. Global AU Class - R - USD $ 26.56 - 0.02 0.00 Atlantis China Fund $ 6.44 - 0.00 0.00 Brown Advisory US Equity Value Fund USD B $ 11.02 - -0.19 1.00 Inspirato Fund No. 2 PCC Limited - Cell B £ 101840.24 - 160.37 0.00 Global Equity Fund of Funds - Class A $ 13.66 - 0.25 0.00 USD Accumulating Class $ 9.42 - -0.01 0.00
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 Atlantis China Healthcare Fund $ 1.83 - -0.01 0.00 Brown Advisory US Flexible Equity SRI Fund USD B $ 14.08 - -0.23 0.40 Inspirato Fund No. 2 PCC Limited - Cell C $ 106606.62 - 997.53 0.00 Global Emerging Markets - Class A $ 12.00 - -0.08 0.00 Dodge & Cox Worldwide Funds plc-Global Stock Fund
Eq. Emerging World AU Class - R - USD $ 80.30 - -0.07 0.00 Brown Advisory American Fund USD B $ 14.86 - -0.23 0.34 USD Accumulating Share Class $ 14.84 - -0.25 0.00
Atlantis Japan Opportunities Fund $ 2.91 - 0.03 0.00 Inspirato Fund No. 2 PCC Limited - Cell D £ 110925.92 - 613.58 0.00 All Africa $ 13.74 - 0.32 0.00

Eq. Greater China AU Class - R - USD $ 536.80 - 0.98 0.00 Brown Advisory US Smaller Companies Fund USD B $ 16.78 - -0.20 0.00 GBP Accumulating Share Class £ 17.37 - -0.21 0.00
Atlantis Asian Fund $ 6.18 - 0.02 0.00 The Global Financial Infrastructure Fund £ 92036.55 - -7570.84 0.00 Africa Frontiers $ 15.52 - 0.92 0.00

Eq. Latin America AU Class - R - USD $ 320.60 - -2.43 0.00 Brown Advisory US Small Cap Blend Fund USD B $ 11.66 - -0.16 0.00 GBP Distributing Share class £ 12.61 - -0.15 0.87
The Global Technology Infrastructure Fund £ 89337.66 - -10151.64 0.00

Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.45 - -0.05 0.00 Brown Advisory US Flexible Equity Fund USD B $ 10.53 - -0.17 0.00 CP Global Asset Management EUR Accumulating Share Class € 19.60 - -0.29 0.00
The London, Key Cities & Counties Social Infrastructure Fund £ 92305.62 - -7063.68 0.00

The Antares European Fund Limited

AXIOM
ALTERNATIVE INVESTMENTS
Brown Advisory Global Leaders Fund $ 9.89 - -0.12 - The Vaccicure Fund £ 100000.00 - - -
www.cpglobal.com.sg, Tel: +65 6466 6990
Other International Funds
CP Multi-Strategy Currency Fund $ 114.66 - -4.77 -
Dodge & Cox Worldwide Funds plc-International Stock Fund
USD Accumulating Share Class $ 12.22 - -0.21 0.00

Other International EUR Accumulating Share Class € 12.65 - -0.19 0.00

AEF Ltd Usd (Est) $ 607.00 - 10.37 - CG Asset Management Limited (IRL) Cedar Rock Capital Limited (IRL)
Axiom Alternative Investments Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland CP Capital Asset Management Limited Dodge & Cox Worldwide Funds plc-U.S. Stock Fund
Asset Management
(FRA) Regulated
AEF Ltd Eur (Est) € 609.35 - 10.02 0.00 00 353 1 434 5098 www.cpgbl.com, email: fundservices@cpgbl.com USD Accumulating Share Class $ 17.40 - -0.29 0.00
Asset Management
1 Conduit Street - 4th floor - London W1S 2XA Cedar Rock Capital Fd Plc $ 377.26 - 7.96 0.00
www.axiom-ai.com Tel: +44 330 822 0374 FCA Recognised Other International Funds
Regulated Capital Gearing Portfolio Fund Plc £ 27736.16 27736.16 61.09 0.60 Cedar Rock Capital Fd Plc £ 412.10 - 7.31 0.00 CPS Master Private Fund $ 172.09 - 0.56 - GBP Accumulating Share Class £ 19.26 - -0.22 0.00

Arisaig Partners Axiom Contingent Capital € 967.88 - -7.20 0.00

CG Portfolio Fund Plc Cedar Rock Capital Fd Plc € 344.65 - -1.49 0.00 CP Global Alpha Fund $ 148.56 - -0.11 - GBP Distributing Share Class £ 12.22 - -0.14 0.65
Other International Funds
Axiom Contingent Capital £ 971.88 - -7.16 0.00 Real Return Cls A £ 182.88 182.88 1.93 1.62
Arisaig Africa Consumer Fund Limited $ 12.96 - 0.01 0.00 CP GLOBAL FINANCIAL GROUP EUR Accumulating Share Class € 19.85 - -0.28 0.00
Axiom Equity $ 669.18 - -13.72 0.00 Dollar Fund Cls D £ 141.88 141.88 1.65 1.53
Arisaig Asia Consumer Fund Limited $ 62.71 - 0.33 0.00 Charles Schwab Worldwide Funds Plc (IRL)
Regulated
Axiom Equity € 704.00 - -14.48 0.00 Capital Value Fund Cls V £ 134.16 134.16 0.30 0.26
Arisaig Global Emerging Markets Consumer UCITS € 11.34 - -0.02 0.00 Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01
Axiom Obligataire $ 1654.26 - -7.40 0.00
Arisaig Global Emerging Markets Consumer UCITS STG £ 11.66 - -0.03 0.00
Axiom Obligataire € 1653.39 - -7.55 0.00 Chartered Asset Management Pte Ltd
Arisaig Latin America Consumer Fund $ 21.24 - -0.10 0.00
Other International Funds
Axiom Obligataire £ 1667.44 - -7.48 0.00
CAM-GTF Limited $ 290833.62 290833.62 1726.87 0.00 Crèdit Andorrà Asset Management (LUX)
Dragon Capital Group
Artisan Partners Global Funds PLC (IRL) www.creditandorra.com
CAM GTi Limited $ 656.43 - 55.28 0.00 1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland FCA Recognised
BLME Asset Management (LUX) Fund information, dealing and administration: funds@dragoncapital.com
Tel: 44 (0) 207 766 7130 Raffles-Asia Investment Company $ 1.61 1.61 0.05 5.34 Crediinvest SICAV Money Market Eur I € 11.22 - 0.00 0.00
BLME Sharia'a Umbrella Fund SICAV SIF Candriam Investors Group (LUX) Other International Funds
FCA Recognised Regulated FCA Recognised
Crediinvest SICAV Money Market Usd A $ 10.06 - 0.01 0.00 Vietnam Property Fund (VPF) NAV $ 0.92 - 0.01 0.00
Artisan Partners Global Funds plc Income Fund - Share Class A Acc $ 1140.16 - 0.30 0.00 Candriam Eqts L Australia Cap A$ 942.58 - -3.75 0.00
Artisan Emerging Markets I USD Acc $ 6.89 - -0.03 0.00 Crediinvest SICAV Fixed Income Eur € 10.67 - -0.01 0.00 Vietnam Enterprise Inv. (VEIL) NAV $ 3.61 - -0.06 0.00
Income Fund - Share Class G Acc £ 1081.78 - 0.28 0.00 Candriam Eqts L Sust World Cap € 267.24 - -1.96 0.00
Artisan Global Equity Fund Class I USD Acc $ 13.62 - -0.15 0.00 Crediinvest SICAV Fixed Income Usd $ 10.61 - 0.01 0.00
Gl Sukuk Fund - Share Class A Acc $ 1237.75 - 1.08 0.00 Candriam Bds Euro Cap € 1159.34 - -1.25 0.00
Artisan Global Opportunities I USD Acc $ 12.18 - -0.06 0.00 DSM Capital Partners Funds (LUX)
Crediinvest SICAV Spanish Value € 231.78 - -2.42 0.00
Gl Sukuk Fund - Share class B Acc £ 1105.13 1105.13 0.97 0.00 Candriam Bds Euro Infl Linked Cap € 142.79 - -0.29 0.00 www.dsmsicav.com
Artisan Global Value Fund Class I USD Acc $ 15.53 - -0.18 0.00 Crediinvest SICAV International Value € 216.52 - -0.87 0.00 Regulated
Candriam Qt-Eqts Europe Cap € 2115.99 - -13.67 0.00 Global Growth I2 Acc € 126.84 - -1.09 0.00
Artisan US Value Equity Fund Class I USD Acc $ 10.91 - -0.13 0.00
FINANCIAL TIMES Monday 11 April 2016 FTfm | 13

FTfm

Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield
Global Growth I1 Eur € 94.81 - -0.82 - American Special Sits W-ACC-GBP £ 11.41 - -0.05 0.82 Hermes Sourcecap EX UK Fund Class F Acc £ 1.41 1.41 0.00 0.00 North American £ 16.4100 - -0.2500 0.11

DSM U.S. Large Cap Growth A € 100.00 - - - Asian Dividend Fund W-ACC-GBP £ 1.20 - 0.01 2.28 The First Investor QSCC Hermes Sourcecap EX UK Fund Class R Acc € 3.00 3.00 0.00 0.00 Invesco Global Asset Management Ltd (IRL) Sterling Bond £ 1.4720xd - 0.0050 3.51
5th Floor, Barwa Bank Building, Grand Hamad Street Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
DSM U.S. Large Cap Growth I1 € 100.00 - - - Asian Dividend Fund W-INC-GBP £ 1.12 - 0.00 3.26 , P.O. Box 16034, Doha, State of Qatar Hermes UK Small & Mid Cap Fund Class F Acc £ 1.52 1.52 0.03 0.00 FCA Recognised UK £ 6.3980 - -0.0200 1.58
+ 974 4459 6111 Invesco Stlg Bd A QD F £ 2.61 - 0.00 3.42
DSM U.S. Large Cap Growth I2 € 100.00 - - - China Consumer Fund W-ACC-GBP £ 1.69 - 0.00 1.15 http://www.tfi.com.qa/ Hermes UK Small & Mid Cap Fund Class R Acc € 4.30 4.30 0.08 0.00 Lloyds Gilt Fund Limited
Other International Funds Invesco Asian Equity A $ 6.04 - -0.02 0.00 Lloyds Gilt Fund Quarterly Share £ 1.3090xd - 0.0040 1.75
Emerging Asia Fund W-ACC-GBP £ 0.97 - 0.01 0.79 Hermes US All Cap Equity Class F Stg £ Acc £ 1.05 1.05 -0.01 -
TFI GCC Equity Opportunities Fund (Q)QAR 1245.70 - 11.19 0.00
Invesco ASEAN Equity A $ 93.63 - 0.00 0.27 Monthly Share £ 1.2610xd - 0.0030 1.75
Edinburgh Partners Limited (IRL) Emerging Eur Mid East and Africa W £ 1.57 - 0.00 2.17 Hermes US All Cap Equity Class R € Acc € 1.85 1.85 -0.02 -
27-31 Melville Street, Edinburgh EH3 7JF Invesco Bond A $ 27.96 - 0.01 1.91 Lloyds Money Fund Limited
Tel: +353 1 434 5143 Dealing - Fax +353 1 434 5230 Enhanced Income Fund W-ACC-GBP £ 1.33 - 0.00 7.60 Foord Asset Management Hermes US SMID Equity Fund Class F Acc £ 1.75 1.75 -0.03 0.00 Sterling Class £ 52.6330 - 0.0000 0.10
FCA Recognised Other International Funds Invesco Continental Eurp Small Cap Eqty A $ 195.66 - 0.25 0.00
Edinburgh Partners Opportunities Fund PLC Enhanced Income Fund W-INC-GBP £ 1.05 - 0.01 8.08 Hermes US SMID Equity Fund Class R Acc € 3.38 3.38 -0.05 0.00 Lloyds Multi Strategy Fund Limited
Foord International Trust $ 34.15 - -0.14 0.00
Emerging Opportunities I USD $ $ 1.06 - 0.00 0.94 Invesco Emerging Markets Equity A $ 34.88 - -0.13 0.00
Conservative Strategy £ 1.1210 - 0.0020 1.97
European Fund W-INC-GBP £ 13.06 - 0.05 2.03
Foord Global Equity Fund_Class B $ 12.09 - -0.10 0.00
European Opportunities I EUR € 2.14 - -0.02 1.65 Invesco Emerging Markets Bond A $ 21.02 - -0.03 4.52
INDIA VALUE INVESTMENTS LIMITED (INVIL) Growth Strategy £ 1.5070 - -0.0020 1.32
European Fund W-ACC-GBP £ 11.37 - 0.04 1.99
www.invil.mu Invesco Continental European Equity A € 7.58 - 0.05 1.23
European Opportunities I GBP £ 1.72 - -0.02 1.71 Aggressive Strategy £ 1.8370 - -0.0100 0.00
European Opportunities W-ACC-GBP £ 3.61 - 0.01 1.55 Franklin Templeton International Services Sarl (IRL) Other International Funds
European Opportunities I USD $ 2.45 - -0.01 1.74 JPMorgan House - International Financial Services Centre,Dublin 1, Ireland NAV £ 8.22 - 0.03 0.00 Invesco Gilt A £ 15.58 - 0.01 1.30
Global USD Growth Strategy $ 1.3410 - -0.0090 0.00
Extra Income Fund Y-INC-GBP £ 1.21 - 0.00 4.14
Other International Funds
European Opportunities A EUR € 2.10 - -0.02 1.06 Invesco Global Small Cap Equity A NAV $ 116.58 - -0.55 0.00
Franklin Emerging Market Debt Opportunities Fund Plc Dealing Daily
Extra Income Fund Y-GINC-GBP £ 1.21 - 0.00 4.14
Franklin Emg Mkts Debt Opp CHFSFr 17.04 - 0.47 8.19 Intercapital Asset Management Ltd (HRV) Invesco Global High Income A NAV $ 11.95 - -0.01 5.96
Global Opportunities I USD $ 1.51 - 0.01 1.27
Global Dividend Fund W-ACC-GBP £ 1.64 - 0.01 3.20 Masarykova ul. 1, 10000, Zagreb, Croatia
Franklin Emg Mkts Debt Opp EUR € 12.01 - 0.32 7.29 Lohengrin Management Ltd (BAH)
Global Opportunities I GBP £ 1.07 - 0.00 1.44 www.icam.hr, Tel; +385 1 4825 868 Invesco Gbl R/Est Secs A GBP F F £ 8.56 - -0.01 0.91 Lohengrin@genesisfundservices.com Tel: 242-502-7020
Global Dividend Fund W-INC-GBP £ 1.48 - 0.01 3.32 Other International Funds
Franklin Emg Mkts Debt Opp GBP £ 10.28 - 0.32 6.89 Other International Funds
Global Opportunities A GBP £ 1.01 - 0.00 0.86 Capital One Bond Fund (Ex-YU) HRK 208.57 - 0.03 - Invesco Global Health Care A $ 116.32 - -1.18 0.00
Global Focus Fund W-ACC-GBP £ 14.96 - 0.04 0.66 Lohengrin Fund Ltd - Class C € 37.79 - -23.19 0.00
Franklin Emg Mkts Debt Opp SGD S$ 22.21 - 0.63 6.23 Invesco Global Select Equity A $ 11.99 - -0.03 0.07
Pan European Opportunities I EUR € 1.31 - 0.00 - Capital Two Equity Fund (Ex-YU) HRK 92.09 - 0.07 -
Global High Yield Fund Y-GACC-GBP £ 12.31 - -0.01 5.88
Franklin Emg Mkts Debt Opp USD $ 17.15 - 0.64 7.00 Invesco Jap Eqty Core A $ 1.78 - 0.02 0.09 Lothbury Property Trust (UK)
Global High Yield Fund Y-GINC-GBP £ 9.81 - 0.00 6.08
155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900
Intrinsic Value Investors (IVI) LLP (IRL) Invesco Japanese Equity A $ 18.39 - 0.10 0.00
Global High Yield Fund Y-ACC-GBP £ 11.79 - -0.01 5.92 Property & Other UK Unit Trusts
Frontier Capital (Bermuda) Limited 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
Invesco Korean Equity A $ 32.00 - -0.11 0.00 Lothbury Property Trust GBP £ 1788.59 1929.66 -22.48 3.19
Other International FCA Recognised
Global High Yield Fund Y-INC-GBP £ 9.81 - -0.01 6.07
Commercial Property-GBP Class £ 71.42 - -0.53 - IVI European Fund EUR € 17.20 - -0.08 0.00
Invesco PRC Equity A $ 48.52 - 0.04 0.00
Global Property Fund W-ACC-GBP £ 1.47 - 0.01 2.04
Global Real Estate-GBP C Class £ 45.26 - -0.50 - IVI European Fund GBP £ 18.71 - -0.09 0.63
Invesco Pacific Equity A $ 45.89 - -0.02 0.07
EFG Hermes Global Special Sits W-ACC-GBP £ 25.34 - 0.00 0.57
DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE Invesco Global Technology A $ 14.63 - -0.20 0.00
Index UK Fund P-INC-GBP £ 0.96 - 0.01 3.83 GYS Investment Management Ltd (GSY)
Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com
Regulated Invesco UK Eqty A £ 7.52 - 0.06 1.55
Other International Funds Index US Fund P-Inc-GBP £ 1.27 - 0.00 1.88
The EFG-Hermes Egypt Fund $ 29.93 - - 0.00 Taurus Emerging Fund Ltd $ 202.35 206.48 11.84 0.00
Index World Fund P-Inc-GBP £ 1.14 - 0.00 2.20 M & G (Guernsey) Ltd (GSY)
EFG-Hermes Frontier Equity UCITS Fund Class I $ 1011.12 - 7.54 - Invest AD Regulated
Japan Fund W-ACC-GBP £ 2.80 - 0.06 0.59 Client services: +971 2 692 6101 clientservices@InvestAD.com The M&G Offshore Fund Range
Generali Worldwide
EFG-Hermes MENA Equity UCITS Fund Class A $ 992.26 - -0.38 - Other International Funds Corporate Bond 1327.98 1369.06 0.66 3.09
PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108 Invesco (LUX)
Japan Smaller Cos Fund W-ACC-GBP £ 2.30 - 0.04 0.28 Invest AD - Emerging Africa Fund $ 921.62 - 1.77 0.00
Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00 International Insurances Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282
Global Basics 2461.84 2537.98 1.68 0.25
MoneyBuilder Balanced Y-ACC-GBP £ 0.51 - 0.00 - Global Multi-Strategy Managed $ 4.65 5.01 -0.06 0.00 FCA Recognised
Invest AD - GCC Focus Fund $ 1369.38 - 12.54 0.00
Saudi Arabia Equity Fund SR 11.31 - -0.06 0.00 Invesco Management SA
Global Leaders 3356.02 3495.85 -14.60 1.08
MoneyBuilder Dividend Y-INC-GBP £ 1.29 - 0.01 5.01 UK Multi-Strategy Managed £ 4.72 5.09 -0.04 0.00 Invesco Active Multi-Sector Credit Fund A € 2.89 - 0.00 0.00
Global High Yield Bond 946.59 975.87 -2.56 4.22
MoneyBuilder Growth Fund Y-INC-GBP £ 0.72 - 0.00 3.11 EU Multi-Strategy Managed € 2.88 3.10 -0.04 0.00 Invesco Asia Balanced A dist $ 13.80 - 0.02 3.73
ENISO Partners AG
Global Macro Bond Fund 12207.77 12585.33 -20.96 2.03
Clairdenstrasse 34, Postfach CH-8022 Zurich MoneyBuilder Income Fund Y-INC-GBP £ 1.20 - 0.01 3.62 Global Bond USD $ 3.51 3.78 0.01 0.00 Invesco Asia Consumer Demand Fund A income $ 11.94 - 0.00 0.25
Tel: +41 (0)44 286 17 17 North American Dividend Fund 169.13 176.17 -1.58 2.15
www.eniso-partners.com MoneyBuilder Income Fund Y-GINC-GBP £ 1.20 - 0.01 3.62 Invesco Asia Infrastructure (A) $ 12.26 - -0.03 0.77
Other International Funds Genesis Asset Managers LLP Optimal Income Fund 140.22 144.56 -0.31 2.64
ENISO Forte CH SMI Expanded SFr 142.30 - -0.45 0.00 Multi Asset Adventurous N-ACC-GBP £ 1.12 - 0.00 1.21 Invesco Asia Opportunities Equity A $ 101.92 - 0.08 0.00
Other International Funds
GAM Recovery Fund Limited 'A' Participating Shares 9615.36 10016.00 27.88 0.53
Multi Asset Alloc Strat N-ACC-GBP £ 1.09 - 0.00 1.27 Emerging Mkts NAV £ 5.56 - -0.02 0.00 Invesco Balanced Risk Allocation Fund A € 14.68 - 0.03 0.00
ENISO Forte E € 107.65 111.96 -0.83 - funds@gam.com, www.jbfundnet.com
Regulated Recovery Fund Limited 'I' Participating Shares 9616.98 9714.12 29.26 1.36
ENISO Forte G (CHF) SFr 130.32 - -0.95 0.00 Multi Asset Alloc Def N-GACC-GBP £ 1.11 - 0.00 1.32 Invesco Emerging Europe Equity Fund A $ 8.10 - 0.09 0.00
Ms EF Special Val. EUR/A € 134.10 - -0.48 1.15
HPB Assurance Ltd Strategic Corporate Bond Fund 133.85 139.43 0.02 2.96
ENISO Forte G (CHF) € 119.92 - -0.66 0.00 Multi Asset Alloc Def N-ACC-GBP £ 1.10 - 0.00 1.32 Invesco Emerging Local Currencies Debt A Inc $ 6.99 - -0.02 6.35
Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 Strategy Balanced-CHF/B SFr 146.11 - -0.74 0.00
UK Select 1445.44 1505.67 2.05 1.14
Multi Asset Alloc Growth N-ACC-GBP £ 1.07 - 0.00 1.16 International Insurances Invesco Emerging Mkt Quant.Eq. A $ 9.25 - 0.02 0.00
ENISO Systematic Risk Class 1 € 95.58 - 0.20 - Strategy Balanced-EUR € 151.14 - -0.72 0.00
Holiday Property Bond Ser 1 £ 0.51 - 0.01 0.00
Multi Asset Defensive N-ACC-GBP £ 1.11 - 0.00 0.98 Invesco Energy A $ 16.43 - -0.12 0.00
Holiday Property Bond Ser 2 £ 0.61 - 0.01 0.00 Strategy Balanced-USD/B $ 128.33 - -0.59 0.00 MFS Investment Funds (LUX)
Ennismore Smaller Cos Plc (IRL) Multi Asset Defensive N-GACC-GBP £ 1.12 - 0.00 0.99 Invesco Euro Corporate Bond Fund (A) € 17.15 - 0.00 0.00 FCA Recognised
Strategy Growth-CHF/B SFr 88.93 - -0.71 0.00
5 Kensington Church St, London W8 4LD 020 7368 4220 Blend.Research Gb.Eq.Fd. € 95.87 - -0.95 0.00
FCA Recognised Multi Asset Growth Fund N-ACC-GBP £ 1.11 - 0.00 1.09 Invesco Euro Inflation Linked Bond A € 15.71 - 0.02 0.00
Haussmann Strategy Growth-EUR € 111.31 - -0.89 0.00
Ennismore European Smlr Cos NAV £ 109.03 - -0.02 0.00 Blend.Research Gb.Eq.Fd. £ 104.00 - -1.03 0.00
Multi Asset Open Growth N-ACC-GBP £ 1.06 - 0.01 1.41 Other International Funds Invesco Euro Reserve A € 322.49 - -0.01 0.00
Haussmann Cls A $ 2506.51 - 16.50 0.00 Strategy Inc-CHF/B SFr 117.94 - -0.25 0.00
Ennismore European Smlr Cos NAV € 135.03 - -0.02 0.00 Blend.Research Gb.Eq.Fd. $ 96.33 - -0.89 0.00
Multi Asset Open Strat N-ACC-GBP £ 1.08 - 0.00 1.68 Invesco Euro Bond A € 7.21 - 0.00 0.00
Haussmann Cls C € 2182.47 - 12.72 0.00 Strategy Inc-EUR/B € 158.08 - -0.31 0.00
Blend.Research U.S.Core Eq.Fd. € 99.95 - -1.23 -
Multi Asset Strategic N-ACC-GBP £ 1.13 - 0.01 0.96 Invesco European Growth Equity A € 23.22 - 0.03 0.00
Haussmann Cls D SFr 1151.83 - 6.44 0.00 Strategy Inc-USD/B $ 146.91 - -0.22 0.00
Ennismore European Smlr Cos Hedge Fd Blend.Research U.S.Core Eq.Fd. £ 103.33 - -1.27 -
Other International Funds Open World Fund N-ACC-GBP £ 1.15 - 0.00 0.21 Invesco Global Absolute Return Fund A Class € 11.44 - -0.01 0.00
NAV € 492.00 - -0.33 0.00 Blend.Research U.S.Core Eq.Fd. ¥ 9162.00 - -288.00 0.00
Multi Asset Income Fund N-GINC-GBP £ 1.02 - 0.00 4.91 Invesco Global Bond A Inc $ 5.51 - 0.00 0.60
Heartwood Wealth Management Limited (IRL)
Blend.Research U.S.Core Eq.Fd. $ 100.52 - -1.18 -
Regulated Invesco Global Conservative Fund 90 (EUR) A € 11.79 - -0.02 0.00
Multi Asset Income Fund N-INC-GBP £ 1.02 - 0.00 4.93
Equinox Fund Mgmt (Guernsey) Limited (GSY) Heartwood Caut Multi Asset B Acc 139.75 - 0.00 0.00 Em.Mk.Eq.Fund Euro € 104.26 - -0.64 0.00
Regulated South-East Asia Fund W-ACC-GBP £ 8.30 - 0.01 1.21 Invesco Global Equity Income Fund A $ 56.36 - 0.08 0.00
Equinox Russian Opportunities Fund Limited $ 116.66 - 5.99 0.00 Em.Mk.Eq.Fund Sterling £ 99.00 - -0.60 0.00
Special Situations Fund W-ACC-GBP £ 27.99 - -0.03 1.98 Invesco Global Inc Real Estate Sec A dist $ 9.36 - -0.02 2.24
Kames Capital VCIC (IRL) Em.Mk.Eq.Fd.US Dollar $ 90.63 - -0.50 0.00
Strategic Bond Fund Y-INC-GBP £ 1.22 - 0.00 3.34 Invesco Global Inv Grd Corp Bond A Dist $ 11.75 - 0.01 3.16
1 North Wall Quay, Dublin 1, Ireland +35 3162 24493
Euronova Asset Management UK LLP (CYM) Gb.Conc.Eq.Fd.Euro € 270.67 - -3.31 0.00
Regulated Strategic Bond Fund Y-GINC-GBP £ 1.22 - 0.00 3.34 Invesco Global Leisure A $ 35.67 - -0.44 0.00 FCA Recognised
Smaller Cos Cls One Shares € 34.93 - 0.29 0.00 Absolute Return Bond B GBP Acc 1083.29 - 0.19 1.25 Gb.Conc.Eq.Fd.Sterl.UK T £ 182.98 - -2.23 0.00
Target 2020 A-ACC-GBP £ 0.57 - 0.00 0.52 Invesco Global Smaller Comp Eq Fd A $ 55.72 - -0.19 0.00
Smaller Cos Cls Two Shares € 24.40 - 0.17 0.00 Eq Market Neutral B Acc 1017.68 - -1.69 - Gb.Conc.Eq.Fd.Sterling £ 276.74 - -3.38 0.00
Target 2025 A-ACC-GBP £ 1.33 - 0.00 0.32 Hermes Investment Funds Plc (IRL) Invesco Global Structured Equity A $ 44.77 - -0.18 1.17
Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121 Eq Market Neutral Plus B Acc 1023.20 - 1.51 - Gb.Conc.Eq.Fd.US $ 195.06 - -2.25 0.00
Smaller Cos Cls Three Shares € 12.20 - 0.11 0.00
Target 2030 A-ACC-GBP £ 1.43 - 0.00 0.40 FCA Recognised Invesco Global Total Ret.(EUR) Bond Fund A € 13.06 - 0.00 0.00
Smaller Cos Cls Four Shares € 15.80 - 0.12 0.00 Hermes Abs Return Credit Fund Class F Acc £ £ 1.08 1.08 0.00 - High Yield Global Bond A GBP Inc 516.18 - -0.31 5.66 Gb.Eq.Hdg Fd.Euro IRE T € 178.75 - -1.97 0.00
UK Select Fund W-ACC-GBP £ 2.38 - 0.01 1.94 Invesco Gold & Precious Metals A $ 4.91 - 0.14 0.00
Hermes Abs Return Credit Fund Class R Acc € € 1.92 1.92 0.00 - High Yield Global Bond B GBP Inc 1073.90 - -0.63 5.66 Gb.Eq.Euro Hdg Fd. € 253.20 - -2.79 0.00
UK Growth Fund W-ACC-GBP £ 3.39 - 0.00 1.26 Invesco Greater China Equity A $ 43.10 - 0.02 0.00
Hermes Active UK Inflation Fund Class F Acc £ 1.31 1.31 0.01 0.00 Investment Grade Global Bd A GBP Inc 567.91 - 1.00 2.50 Gb.Eq.Fund Euro € 271.14 - -3.16 0.00
UK Smaller Companies W-ACC-GBP £ 1.91 - -0.01 1.50 Invesco India Equity A $ 49.34 - 0.26 0.00
Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.69 1.69 -0.01 0.00 Kames Global Equity Income B GBP Acc 1255.26 - -3.44 - Gb.Eq. Fd Euro IRE T € 171.63 - -2.00 0.00
WealthBuilder Fund N-ACC-GBP £ 1.18 - 0.00 1.36 Invesco Japanese Equity Adv Fd A ¥ 3406.00 - 45.00 0.00
Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.31 3.31 -0.02 0.00 Kames Global Equity Income B GBP Inc 1189.42 - -3.27 - Gb.Eq.Fd.Sterling UK T £ 221.66 - -2.58 0.00
Institutional OEIC Funds Invesco Japanese Value Eq Fd A ¥ 1122.00 - 10.00 0.00
Europe (ex-UK) Fund ACC-GBP £ 4.09 - 0.01 1.57 Hermes Global Emerging Markets Fund Class F Acc £ 1.24 1.24 -0.01 0.00 Strategic Global Bond A GBP Inc 1097.68 - 1.31 1.37 Gb.Eq.Fd.US Dollar $ 308.48 - -3.39 0.00
Eurobank Fund Management Company (Luxembourg) S.A. Invesco Latin American Equity A $ 5.88 - -0.05 0.00
Regulated Reduced Duration UK Corp Bond Gross £ 10.54 - 0.01 3.23 Hermes Global Emerging Markets Fund Class R Acc € 2.84 2.84 -0.01 0.00 Strategic Global Bond B GBP Inc 623.28 - 0.75 1.87 Gb.Eq.Fund Sterling £ 218.91 - -2.54 0.00
Invesco Nippon Small/Mid Cap Equity A ¥ 1052.00 - 15.00 0.00
(LF) Absolute Return € 1.30 - 0.00 0.00
Reduced Duration UK Corp Bond Inc £ 9.57 - 0.01 3.26 Hermes Global Equity Fund Class F Acc £ 1.58 1.58 -0.01 0.00 Gb.Val.Ex-Jap.Fd.USD $ 118.68 - -1.16 0.00
(LF) Eq Emerging Europe € 0.72 - 0.00 0.00 Invesco Pan European Equity A EUR Cap NAV € 16.53 - 0.16 0.00
LF Funds (Banque Libano-Francaise Group) (LUX)
Reduced Dur UK Corp Bond Gross Inc £ 9.57 - 0.01 3.26 Hermes Global Equity Fund Class R Acc € 3.75 3.75 -0.02 0.00 Gb.Val.Ex-Japan Fd.Yen ¥ 12593.00 - -370.00 0.00
Invesco Pan European High Income Fd A € 13.40 - 0.02 2.67 www.eblf.com - lffunds@eblf.com
(LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00
Regulated
Asset Management
UK Gilt Fund Inc £ 1.32 - 0.00 1.96 Hermes Global ESG Equity Fund Class F Acc £ 1.22 1.22 -0.01 0.00 Gb.Val.Fd. Euro € 129.07 - -1.06 0.00
Invesco Pan European Small Cap Equity A € 20.62 - 0.00 0.00 LF Total Return Bond Fund - Class A $ 116.77 - 0.15 0.00
(LF) Eq Mena Fund

(LF) Greek Government Bond

€ 12.52

€ 17.56
-

-
0.13 0.00

0.08 -
UK Long Corporate Bond - Gross Inc £ 11.23 - 0.03 4.25 Hermes Global High Yield Bond Fund Class F Acc £ 1.18 1.18 0.00 0.00
Asset Management
Invesco Pan European Structured Equity A € 16.34 - 0.00 0.00 LF Total Return Bond Fund - Class D $ 114.78 - 0.15 0.00
Gb.Val.Fd.Sterling Asset Management £ 126.67 - -1.05 0.00

Hermes Global High Yield Bond Fund Class R Acc € 2.78 2.78 0.00 0.00 Gb.Val.Fd.USD $ 105.68 - -0.80 0.00
(LF) Greek Corporate Bond € 11.75 - 0.01 - Invesco UK Eqty Income A £ 31.05 - 0.11 0.00
Findlay Park Funds Plc (IRL) Hermes Global Small Cap Fund Class F Acc £ £ 1.05 1.05 0.00 - Low Volatility Gb.Eq.Fd.Euro € 103.24 - -0.71 0.00
30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 Invesco UK Investment Grade Bond A £ 1.00 - 0.00 2.66 Lloyds Investment Fund Managers Limited (1000)F (JER)
(LF) FOF Dynamic Fixed Inc € 11.57 - -0.01 0.00 PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
FCA Recognised Hermes Global Small Cap Fund Class R Acc € € 1.86 1.86 -0.01 - Low Volatility Gb.Eq.Fd.Sterl £ 112.00 - -0.76 0.00
Invesco US Structured Equity A $ 21.61 - -0.19 0.00 Other International Funds
(LF) FOF Real Estate € 16.47 - -0.06 0.00 American Fund USD Class $ 81.76 - -0.72 0.00
Hermes Multi Asset Inflation Fund Class F GBP Acc £ 0.98 0.98 0.00 0.00 Lloydstrust Gilt £ 12.5500xd - 0.0300 2.24 Low Volatility Gb.Eq.Fd.USD $ 103.73 - -0.64 0.00
American Fund GBP Hedged £ 44.49 - -0.39 0.00 Invesco US Value Eq Fd A $ 29.38 - -0.49 0.00
Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.04 1.04 0.00 0.00 Lloyds Investment Funds Limited Low Volatility Gb.Eq.Fd.Yen ¥ 8730.00 - -224.00 -
FIL Investment Services (UK) Limited (1200)F (UK) American Fund GBP Unhedged £ 57.86 - -0.70 - Invesco USD Reserve A $ 87.04 - 0.00 0.00 Euro High Income € 1.6340xd - 0.0000 2.90
130, Tonbridge Rd, Tonbridge TN11 9DZ Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.33 1.33 0.00 0.00
Callfree: Private Clients 0800 414161 Latin American Fund USD Class $ 12.22 - -0.15 0.00 European £ 7.7670 - -0.0250 1.22
Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.29 1.29 0.00 1.30 MMIP Investment Management Limited (GSY)
Broker Dealings: 0800 414 181
Latin American Fund GBP Unhedged £ 8.77 - -0.14 - High Income £ 0.8634xd - 0.0019 4.96 Regulated
Authorised Inv Funds
Hermes Sourcecap EU Alpha Fund Class R Acc € 2.91 2.91 0.01 0.00 Multi-Manager Investment Programmes PCC Limited
OEIC Funds
International £ 4.1980 - -0.0210 0.87 European Equity Fd Cl A Initial Ser € 2642.19 2642.19 62.94 0.00
American Fund W-ACC-GBP £ 28.21 - -0.02 0.00
14 | FTfm FINANCIAL TIMES Monday 11 April 2016

FTfm

Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield
Japanese Equity Fd Cl A Initial Ser ¥ 368031.00 368031.00 6127.00 0.00 Morant Wright Fuji Yield B YEN Acc ¥ 851.82 - 7.86 0.00 Asia Pac Eq USD Inst Inc $ 97.49 - 0.07 3.86 Pictet-Emerging Markets Index-I USD F $ 210.80 - 0.08 0.00 Euro Bond - Inst Acc € 23.04 - -0.04 0.00

MMIP - US EQUITY CLASS A 01 June 07 Series $ 1304.31 1304.31 168.32 0.00 Morant Wright Fuji Yield YEN Dist ¥ 944.78 - 8.71 2.43 Dyn Europ Eq EUR Ord Inc € 164.22 - -1.23 0.71 Odey Asset Management LLP (IRL) Pictet-Emerging Corporate Bonds I USD $ 109.72 - 0.10 0.00 Euro Credit - Inst Acc € 15.06 - 0.01 0.00
FCA Recognised
Pacific Basin Fd Cl A Initial Ser $ 2059.34 2059.34 -82.99 0.00 Morant Wright Sakura Fund Sterling Acc Hedged £ 11.57 - 0.14 0.00 Dyn Europ Eq GBP Ord Inc £ 174.18 - -1.29 1.08 Odey Pan European EUR R € 302.50 - 0.11 0.00 Pictet-Emerging Markets High Dividend I USD $ 93.27 - 0.14 0.00 Euro Income Bond - Inst Acc F € 13.09 - 0.02 0.00

UK Equity Fd Cl A Series 01 £ 2268.35 2296.04 13.40 0.00 Morant Wright Sakura Fund Euro Acc Hedged € 11.56 - 0.14 0.00 Dyn Europ Eq USD Ord Inc $ 163.92 - -1.21 0.71 Odey Absolute Return Focus Fund $ 93.19 - -4.00 - Pictet-Emerging Markets Sust Eq I USD $ 84.32 - -0.12 0.00 Euro Long Average Duration - Inst Acc € 24.00 - 0.09 0.00

Diversified Absolute Rtn Fd USD Cl AF2 $ 1519.60 - -26.37 0.00 Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1188.42 - 14.19 0.00 China Equity EUR Ord Acc € 122.02 - -1.05 0.00 Odey Allegra European EUR O € 246.82 - -0.41 0.00 Pictet-EUR Bonds-I F € 572.19 - 0.81 0.00 Euro Low Duration Fund Inst Acc € 11.28 - 0.00 0.00

Diversified Absolute Return Stlg Cell AF2 £ 1536.33 - -27.43 0.00 Morant Wright Sakura Fund Dollar Acc Hedged $ 11.52 - 0.14 0.00 China Equity GBP Ord Acc £ 127.14 - -1.08 0.00 Odey Allegra International EUR O € 158.55 - 0.40 0.00 Pictet-EUR Corporate Bonds Ex Fin i EUR € 147.77 - 0.13 0.00 Euro Real Return - Inst Acc € 13.57 - -0.04 0.00

Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 11.44 - 0.14 0.00 China Equity USD Ord Acc $ 124.43 - -1.06 0.00 Odey Allegra Developed Markets USD I $ 123.81 - -1.21 0.00 Pictet-EUR Corporate Bonds-I F € 204.27 - 0.18 0.00 Euro Short-Term Inst Acc € 12.24 - -0.01 0.00

LNG Capital (CYM) China Equity USD Inst Acc $ 128.25 - -1.09 0.00 Odey European Focus Fund € 16.87 - -0.06 0.51 Pictet-EUR Government Bonds I EUR € 163.04 - -0.23 0.00 Euro Ultra Long Duration - Inst Acc € 32.61 - 0.18 0.00
Kingsbury House, 15-17 King St, London SW1Y 6QU
www.lngcapital.com, Tel: 0207 839 3456 Europ. Equity Fd EUR € 98.01 - -0.73 - Odey Atlas Fund GBP I S £ 1.12 - 0.00 0.00 Pictet-EUR High Yield-I F € 242.49 - 0.04 0.00 Global Advantage - Inst Acc $ 12.47 - 0.01 0.00
Regulated
LNG Europa Credit Fund EUR € 1160.68 - 2.11 0.00 Europ. Equity Fd GBP £ 96.51 - -0.72 - Odey Giano European Fund EUR R € 123.66 - 0.69 0.00 Pictet-EUR Short Mid-Term Bonds-I F € 137.14 - -0.05 0.00 Global Advantage Real Return Fund Inst Acc $ 8.71 - 0.00 0.00

LNG Europa Credit Fund GBP £ 1180.64 - 2.67 0.00 Europ. Equity Fd USD $ 96.87 - -0.72 - Odey Naver Fund EUR I € 115.41 - 0.22 0.00 Pictet-EUR Short Term HY I EUR € 120.69 - 0.05 0.00 Global Bond - Inst Acc $ 28.53 - 0.00 0.00

LNG Europa Credit Fund USD $ 1181.64 - 2.16 0.00 Global Val.Cr.Fd GBP Ord Inc £ 110.34 - -0.09 3.59 Odey Odyssey USD I $ 133.91 - 2.61 0.00 Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.84 - -0.01 0.00 Global Bond Ex-US - Inst Acc $ 20.12 - -0.02 0.00
Morgan Stanley Investment Funds (LUX)
6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61 Global Val.Cr.Fd USD Inst Acc $ 124.34 - -0.09 0.00 Odey Orion Fund EUR I € 114.85 - 0.18 0.00 Pictet-Euroland Index IS EUR € 118.21 - -1.30 0.00 Global High Yield Bond - Inst Acc $ 20.15 - -0.02 0.00
www.morganstanleyinvestmentfunds.com
Marlborough International Management Limited (GSY) FCA Recognised Global Val.Cr.Fd GBP Ord Acc £ 178.93 - -0.14 0.00 Odey Swan Fund EUR I € 76.99 - 1.44 0.00 Pictet-Europe Index-I EUR F € 153.49 - -1.01 0.00 Global Investment Grade Credit - Inst Income $ 12.25 - 0.02 3.84
Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520 US Advantage A F $ 56.65 - 0.23 0.00
FCA Recognised Global Val.Cr.Fd USD Ord Acc $ 168.00 - -0.13 0.00 Odey European Absolute Return GBP S £ 92.71 - 0.49 0.00 Pictet-European Equity Selection-I EUR F € 578.43 - -2.08 0.00 Global Investment Grade Credit Fund Inst Acc € € 11.69 - 0.01 0.00
Marlborough North American Fund Ltd £ 33.16 35.34 -0.19 0.00 Asian Equity A F $ 39.60 - 0.06 0.00
Global Val.Cr.Fd EUR Ord Acc € 155.91 - -0.13 0.00 Pictet-European Sust Eq-I EUR F € 230.78 - -1.12 0.00 Global Investment Grade Credit Fund Inst Acc $ $ 17.10 - 0.03 0.00
Marlborough Tiger Fund Ltd F £ 26.61 28.35 -0.37 0.00 Asian Property A F $ 17.57 - 0.11 0.00 Odey Wealth Management (CI) Ltd (IRL)
Swiss Select Equity Inst Acc SFr 114.04 - -0.45 0.00 Pictet-Global Bds Fundamental I USD $ 124.08 - 0.27 0.00 Global Multi-Asset - Inst Acc $ 13.91 - -0.08 0.00
www.odey.com/prices
Diversified Alpha Plus A F € 28.69 - 0.02 0.00
Swiss Select Equity Ord Acc SFr 112.51 - -0.45 0.00 FCA Recognised Pictet-Global Bonds-I EUR € 170.65 - 1.08 0.00 Global Real Return - Inst Acc $ 18.49 - 0.05 0.00
Marwyn Asset Management Limited (CYM)
Emerg Europ, Mid-East & Africa Eq A F € 64.42 - 0.20 0.00 Odey Opportunity EUR I € 209.33 - 0.26 0.00
Regulated US Growth USD Ord Acc $ 195.95 - -2.48 0.00 Pictet-Global Emerging Currencies-I USD F $ 98.46 - 0.02 0.00 Income Fund Inst Acc $ 12.44 - -0.02 0.00
Marwyn Value Investors £ 429.37 - -11.27 0.00 Emerging Markets Debt A F $ 77.58 - 0.11 0.00
US Growth EUR Ord Acc € 186.90 - -2.38 0.00 Pictet-Global Emerging Debt-I USD F $ 367.00 - -0.39 0.00 Inflation Strategy Fund Inst Acc $ 8.89 - -0.01 0.00
Omnia Fund Ltd
Emerging Markets Domestic Debt AX F £ 11.45 - -0.02 4.84
US Growth GBP Ord Acc £ 196.57 - -2.49 0.00 Other International Funds Pictet-Global Env.Opport-I EUR € 153.37 - -1.05 0.00 Low Average Duration - Inst Acc $ 14.88 - 0.01 0.00
Meridian Fund Managers Ltd Emerging Markets Equity A F $ 32.86 - 0.02 0.00
Estimated NAV $ 822.43 - 12.90 0.00
Other International Funds US Growth USD Inst Acc $ 181.43 - -2.29 0.00 Pictet-Global Megatrend Selection-I USD F $ 215.94 - -1.51 0.00 PIMCO RAE Fundam.PLUS Em.Mkts Inst Acc $ 8.37 - -0.02 0.00
Global Gold & Resources Fund $ 198.90 - 17.50 - Euro Bond A F € 16.14 - 0.02 0.00
Wealthy Nat Bd EUR Inst Inc € 110.33 - 0.04 3.64 Pictet-Greater China-I USD F $ 425.20 - 1.12 0.00 PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 10.40 - -0.09 0.00
Global Energy & Resources Fund $ 29.42 - -0.38 - Euro Corporate Bond AX F £ 24.22 - -0.11 1.51
Wealthy Nat Bd GBP Inst Inc £ 114.94 - 0.04 3.60 Pictet-Health-I USD $ 257.70 - -2.69 0.00 PIMCO RAE Fundam.PLUS US Inst Acc $ 12.21 - -0.16 0.00
Euro Strategic Bond A F € 44.36 - -0.01 0.00
Wealthy Nat Bd EUR Ord Inc € 109.58 - 0.04 3.38 Pictet-High Dividend Sel I EUR F € 151.08 - -0.56 0.00 Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.98 - -0.01 0.00
European Currencies High Yield Bd A F € 21.81 - 0.00 0.00
Wealthy Nat Bd GBP Ord Inc £ 115.56 - 0.05 3.32 Pictet-India Index I USD $ 91.31 - -0.55 0.00 StocksPLUS{TM} - Inst Acc $ 23.10 - -0.28 0.00
European Equity Alpha A F € 39.23 - 0.28 0.00
Wealthy Nat Bd USD Ord Inc $ 112.79 - 0.05 3.30 Optima Fund Management Pictet-Indian Equities-I USD F $ 419.77 - -1.95 0.00 Total Return Bond - Inst Acc $ 27.72 - 0.07 0.00
Other International Funds
European Property A F € 33.63 - -0.05 0.00
New Capital Alternative Strategies Cuttyhunk Fund II Limited $ 1312.01 - -22.68 0.00 Pictet-Japan Index-I JPY F ¥ 13606.06 - 155.31 0.00 UK Corporate Bond - Inst Acc £ 17.72 - 0.06 0.00
Eurozone Equity Alpha A F € 10.56 - 0.04 0.00 All Weather Fd USD Cls $ 115.95 - -1.88 0.00
Emerging Markets Managed Accounts PLC (IRL) JENOP Global Healthcare Fund Ltd $ 12.21 - -0.15 0.00 Pictet-Japanese Equities Opp-I JPY F ¥ 8117.07 - 111.46 0.00 UK Long Term Corp. Bnd Inst-Inst Acc £ 19.85 - 0.09 0.00
info@emmaplc.com,+44(0)20 8123 8369 www.emmaplc.com Global Bond A F $ 40.10 - 0.10 0.00 All Weather Fd EUR Cls € 103.87 - -1.80 0.00
Regulated OPTIKA Fund Limited - Cl A $ 84.12 - -1.02 - Pictet-Japanese Equity Selection-I JPY F ¥ 11945.80 - 174.52 0.00 UK Low Duration - Inst Acc £ 14.12 - 0.01 0.00
Milltrust ASEAN A $ 94.68 - 1.78 0.00 Global Brands A F $ 101.48 - 0.48 0.00 All Weather Fd GBP Cls £ 111.94 - -1.97 0.00
Optima Fd NAV (Est) $ 81.13 - 0.05 0.00 Pictet-LATAM Index I USD $ 52.58 - -0.32 0.00 UK Real Return - Inst Acc £ 22.94 - -0.04 0.00
Milltrust India A $ 118.82 - 2.74 0.00 Global Convertible Bond A F $ 40.73 - 0.08 0.00 Tactical Opps USD Cls $ 134.90 - 0.47 0.00
Optima Discretionary Macro Fund Limited $ 84.09 - -0.33 0.00 Pictet-LATAM Lc Ccy Dbt-I USD F $ 112.50 - -1.32 0.00 UK Sterling Long Average Duration - Inst Acc £ 23.40 - 0.22 0.00
Milltrust Latin America A $ 76.36 - 0.86 0.00 Global Property A F $ 27.98 - 0.09 0.00 Tactical Opps EUR Cls € 113.01 - 0.39 0.00
The Dorset Energy Fd Ltd NAV (Est) $ 24.86 - -1.40 0.00 Pictet-Multi Asset Global Opportunities-I EUR € 114.90 - -0.18 0.00 Unconstrained Bond - Inst Acc $ 11.77 - -0.01 0.00
Milltrust Keywise China Fund $ 107.26 - 0.65 0.00 Indian Equity A F $ 33.30 - -0.14 0.00 Tactical Opps GBP Cls £ 126.54 - 0.43 0.00
Platinum Fd Ltd (Est) $ 82.03 - -1.28 0.00 Pictet-Pacific Ex Japan Index-I USD F $ 324.21 - 0.09 0.00 US High Yield Bond Fund Inst Acc $ 27.79 - -0.04 0.00
Latin American Equity A F $ 39.76 - -0.20 0.00
Platinum Fd Ltd EUR (Est) € 15.84 - -0.24 0.00 Pictet-Premium Brands-I EUR F € 139.96 - -1.20 0.00
Short Maturity Euro Bond A F € 20.35 - -0.01 0.00
Platinum Japan Fd Ltd (Est) $ 51.20 - -0.64 0.00 Pictet-Quality Global Equities I USD $ 137.34 - -1.10 0.00
US Dollar Liquidity A F $ 13.03 - 0.00 0.00
Optima Partners Global Fd (Est) $ 13.12 - -0.02 0.00 Pictet-Russia Index I USD $ 51.23 - 0.13 0.00
US Growth A F $ 66.22 - 0.36 0.00
Optima Partners Focus Fund A $ 14.40 - -0.03 0.00 Pictet-Russian Equities-I USD F $ 45.58 - 0.13 0.00
US Growth AH F € 45.80 - 0.25 0.00
Mirabaud Asset Management (LUX) Northwest Investment Management (HK) Ltd Pictet-Security-I USD F $ 196.41 - -1.97 0.00
11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373 Platinum Capital Management Ltd
www.mirabaud.com, marketing@mirabaud.com US Growth AX F £ 46.96 - 0.16 0.00
Other International Funds
Oryx International Growth Fund Ltd Pictet-Select-Callisto I EUR € 103.47 - 0.15 0.00 Other International Funds
Regulated Other International Funds
US Property A F $ 72.24 - 0.51 0.00 Northwest $ class $ 2245.96 - -60.31 0.00 Platinum All Star Fund - A (Est) $ 113.88 - - -
Mir. - Conv. Bds Eur A EUR € 131.55 - -0.08 0.00 NAV (Fully Diluted) £ 7.01 - 0.08 0.00 Pictet-Small Cap Europe-I EUR F € 1046.94 - -7.29 0.00
Platinum Global Dividend Fund - A (Est) $ 50.09 - - -
Mir. - Conv. Bds Glb A USD $ 110.33 - -0.22 0.00 Pictet-ST.MoneyMkt-I € 140.39 - 0.00 0.00
Morgens Waterfall Vintiadis.co Inc Platinum Maverick Enhanced Fund Limited (Est) $ 89.52 - - 0.00
Mir. - Eq Asia ex Jap A $ 168.33 - -0.05 0.00 Pictet-ST.MoneyMkt JPY I USD ¥ 101499.57 - 2.89 0.00
Other International Funds
Phaeton Intl (BVI) Ltd (Est) $ 380.76 - 2.92 0.00
Mir.- EqEurope ExUK Sm&Mid £ 111.16 - -0.87 - Pictet-ST.MoneyMkt-ICHF SFr 123.92 - 0.00 0.00

Mir. - Eq Glb Emrg Mkt A USD $ 87.52 - 0.26 0.00 Pictet-ST.MoneyMkt-IUSD $ 135.59 - 0.01 0.00

Mir. - Eq Global Focus A USD $ 93.70 - -0.51 0.00 Pictet-Timber-I USD F $ 141.31 - -1.78 0.00
Oasis Crescent Management Company Ltd
Other International Funds
Permal Investment Mgmt Svcs Ltd
Mir. - EqPanEuropeSm&Mid € 109.31 - -0.81 0.00 www.permal.com Pictet Total Ret-Agora I EUR € 114.75 - 0.23 0.00
Oasis Crescent Equity Fund R 9.74 - -0.07 0.00
Other International Funds
Mir. - Eq Spain A € 22.90 - -0.28 0.00 Pictet Total Ret-Corto Europe I EUR € 131.68 - -0.08 0.00 Polar Capital Funds Plc (IRL)
Offshore Fund Class A US $ Shares
Regulated
Mir. - Eq Swiss Sm/Mid A SFr 329.91 - -0.89 0.00 Investment Holdings N.V. $ 4979.24 - -104.03 0.00 Pictet Total Ret-Divers Alpha I EUR € 104.86 - 0.11 0.00
Natixis International Funds (Lux) I SICAV (LUX) Oasis Global Mgmt Co (Ireland) Ltd (IRL) Biotechnology I USD $ 15.85 15.85 -0.20 0.00
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000 Regulated Macro Holdings Ltd $ 4293.35 - 54.17 0.00
Mir. - Glb High Yield Bds A $ 108.12 - -0.08 - Pictet Total Ret-Kosmos I EUR € 109.57 - 0.04 0.00
FCA Recognised Oasis Global Investment (Ireland) Plc UK Absolute Equity I GBP £ 12.66 12.66 0.08 0.00
Mir. - Glb Eq High Income A USD $ 96.29 - -0.39 0.00 Harris Global Equity R/A (USD) $ 227.94 227.94 -2.59 0.00 Oasis Crescent Global Short Term Income Fund $ 0.99 - 0.01 1.00 Fixed Income Holdings N.V. $ 334.86 - -3.94 - Pictet Total Ret-Mandarin I USD $ 115.04 - -0.15 0.00

Mir. - Glb Inv Grade Bds A € 102.83 - 0.06 - Harris US Equity Fund R/A (USD) $ 201.23 201.23 -3.51 0.00 Oasis Global Equity $ 27.10 - -0.22 0.22 Permal Absolute Return Fund $ 153.14 - -4.15 0.00 Pictet-US Equity Selection-I USD $ 184.63 - -2.12 0.00 Polar Capital LLP (CYM)
Regulated
Mir. - Glb Strat. Bd A USD $ 105.57 - 0.07 0.00 Harris Concentrated US Equity R/A (USD) $ 150.95 150.95 -2.81 0.00 Oasis Crescent Global Investment Fund (Ireland) plc Pictet-US High Yield-I USD F $ 143.77 - -0.13 0.00 ALVA Convertible A USD $ 127.45 - 0.53 0.00
Oasis Crescent Global Equity Fund $ 27.86 - -0.20 0.00
Mir. Opp.- Activ.Strategies I $ 94.41 - 3.94 0.00 Loomis Sayles Strategic Alpha R/A (USD) $ 109.70 109.70 0.03 - Pictet-USA Index-I USD F $ 181.15 - -2.19 0.00 European Conviction A EUR € 144.71 - 1.01 0.00
Oasis Crescent Variable Balanced Fund £ 10.52 - -0.01 0.37
MIR. OPP.- EMERG.MKT HO $ 96.15 - 0.00 0.00 Pictet-USD Government Bonds-I F $ 658.62 - 2.89 0.00 European Forager A EUR € 172.73 - 1.78 0.00
OasisCresGl Income Class A $ 10.79 - 0.01 2.45
Mir. - US Shrt Term Credit Fd $ 100.96 - 0.05 -
Natixis International Funds (Dublin) I plc (IRL)
Pictet-USD Short Mid-Term Bonds-I F $ 130.95 - 0.11 0.00
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000
OasisCresGl LowBal D ($) Dist $ 11.66 - -0.05 0.00
MirAlt Sicav-Diversified A Cap. $ 105.43 - -0.27 0.00 Regulated Pictet-USD Sov.ST.Mon.Mkt-I $ 102.80 - 0.00 0.00 Polunin Capital Partners Ltd
Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.90 12.90 0.05 1.20 OasisCresGl Med Eq Bal A ($) Dist $ 11.89 - -0.07 0.49 Pictet Asset Management (Europe) SA (LUX)
Other International Funds
MirAlt Sicav-Europe A dis € 68.55 - -0.51 0.00 15, Avenue J.F. Kennedy L-1855 Luxembourg Pictet-Water-I EUR F € 272.61 - -0.57 0.00 Emerging Markets Active $ 39.89 - 0.31 -
Loomis Sayles High Income R/D (USD) $ 7.54 7.54 -0.03 11.93 Oasis Crescent Gbl Property Eqty $ 9.51 - -0.08 2.22 Tel: 0041 58 323 3000
MirAlt Sicav - North America A dis $ 144.96 - 3.83 0.00 FCA Recognised Luxcellence Em Mkts Tech $ 935.26 - 19.43 0.00
Loomis Sayles Multisector Income R/D (GBP) $ 11.73 11.73 -0.03 5.60 Pictet-Absl Rtn Fix Inc-HI EUR € 106.86 - 0.12 0.00
Pimco Fds: Global Investors Series Plc (IRL)
Polunin Developing Countries $ 751.90 758.29 -1.47 0.00
Pictet-Agriculture-I EUR F € 177.05 - -0.43 0.00 PIMCO Europe Ltd,11 Baker Street,London W1U 3AH
MW Japan Fund Plc (IRL)
http://gisnav.pimco-funds.com/
FCA Recognised Polunin Discovery - Frontier Markets $ 1356.40 - 9.06 0.00
Pictet-Asian Equities Ex Japan-I USD F $ 201.01 - 0.06 0.00 Dealing: +44 20 3640 1000
MW Japan Fund PLC A $ 23.35 - 0.21 -
PIMCO Funds: +44 (0)20 3640 1407 Polunin Small Cap $ 1446.34 1464.42 42.46 0.00
Pictet-Asian Local Currency Debt-I USD F $ 160.45 - 0.01 0.00 FCA Recognised
MW Japan Fund PLC B $ 23.50 - 0.21 -
Capital Securities Inst Acc $ 14.55 - -0.02 0.00
Pictet-Biotech-I USD F $ 692.42 - -13.18 0.00
MW Japan Fund PLC C $ 81.00 - 0.96 - Odey Asset Management LLP (CYM) Private Fund Mgrs (Guernsey) Ltd (GSY)
Commodity Real Return Fund Inst Acc $ 5.67 - -0.02 0.00
Regulated Pictet-Brazil Index I USD $ 40.80 - 0.02 0.00 Regulated
New Capital Fund Management Ltd (IRL)
OEI Mac Inc GBP A £ 263.46 - -3.08 0.00 Monument Growth 05/04/2016 £ 481.16 486.20 -0.41 1.26
Leconfield House, Curzon Street, London, W1J 5JB Credit Absolute Return Fund Inst Acc $ 10.91 - -0.01 0.00
Pictet-CHF Bonds I CHF SFr 512.19 - 2.07 0.00
Morant Wright Funds (Ireland) PLC (IRL)
FCA Recognised OEI Mac Inc GBP B £ 151.40 - -2.48 0.00
FCA Recognised Diversified Income - Inst Acc $ 19.71 - 0.02 0.00
New Capital UCITS Funds Pictet-China Index I USD $ 97.46 - 0.27 0.00
Morant Wright Fuji Yield EUR Dist Hedged € 9.22 - 0.09 2.38
Asia Pac Bd USD Inst Inc $ 94.71 - 0.06 3.28 OEI MAC Inc USD $ 1400.67 - -18.09 0.00 Prusik Investment Management LLP (IRL)
Diversified Income Durat Hdg Fund Inst Acc $ 11.14 - -0.02 0.00
Pictet-Clean Energy-I USD F $ 75.34 - -0.58 0.00 Enquiries - 0207 493 1331
Morant Wright Fuji Yield GBP Acc Hedged £ 9.54 - 0.08 0.00 Odey European Inc EUR € 621.23 - -2.30 0.00 Regulated
Asia Pac Bd USD Ord Inc $ 96.64 - 0.06 2.59 Emerging Asia Bond Fund Inst Acc $ 10.13 - 0.00 0.00
Pictet-Digital Communication-I USD F $ 256.81 - -2.05 0.00 Prusik Asian Equity Income B Dist $ 157.92 - 0.65 4.01
Morant Wright Fuji Yield GBP Dist Hedged £ 9.30 - 0.09 0.92 Odey European Inc GBP A £ 240.41 - -0.85 0.00
Asia Pac Eq EUR Ord Inc € 83.29 - 0.04 3.19 Emerging Local Bond - Inst Acc $ 11.33 - -0.04 0.00
Pictet-Em Lcl Ccy Dbt-I USD F $ 163.02 - -0.58 0.00 Prusik Asia A $ 185.81 - 0.37 0.00
Morant Wright Fuji Yield USD Acc Hedged $ 9.31 - 0.09 0.00 Odey European Inc GBP B £ 136.44 - -0.48 0.00
Asia Pac Eq GBP Ord Inc £ 86.31 - 0.05 3.74 Emerging Markets Bond - Inst Acc $ 38.85 - -0.09 0.00
Pictet-Emerging Europe-I EUR F € 270.42 - -0.32 0.00 Prusik Asian Smaller Cos A $ 142.48 - -0.05 0.00
Morant Wright Fuji Yield USD Dist Hedged $ 9.33 - 0.08 2.45 Odey European Inc USD $ 287.47 - -1.30 0.00
Asia Pac Eq USD Ord Inc $ 87.35 - 0.06 3.18 Emerging Markets Corp.Bd Fund Inst Acc F $ 12.97 - 0.00 0.00
Pictet-Emerging Markets-I USD F $ 469.55 - 0.81 0.00
Morant Wright Fuji Yield YEN Acc ¥ 964.79 - 8.89 0.00 Giano Capital EUR Inc € 4705.04 - 184.12 0.00
Asia Pac Eq USD Inst Acc $ 94.16 - 0.06 0.00 Emerging Markets Short-Term Local Currency Fund $ 12.05 - -0.02 0.00
FINANCIAL TIMES Monday 11 April 2016 FTfm | 15

FTfm

Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield
RobecoSAM Sustainable Gl.Eq/N € 145.95 - -1.37 0.00 Renminbi Bond Fund USD Cls B $ 122.92 - -0.31 2.94 Veritas Asian Fund B GBP £ 300.60 - -0.54 0.00

Purisima Investment Fds (CI) Ltd (JER) RobecoSAM S.HealthyLiv/B € 172.41 - -1.04 0.00 Renminbi Bond Fund YEN Cls B ¥ 13913.22 - -35.51 0.00 Veritas Asian Fund B EUR € 227.92 - -0.43 0.00
Regulated
PCG B 161.53 - 2.22 0.00 RobecoSAM S.HealthyLiv/N € 161.04 - -0.97 0.00 Renminbi Bond Fund USD Cls A $ 169.27 - -0.43 3.19 Veritas China Fund B GBP £ 127.38 - -0.86 0.00

PCG C 159.20 - 2.19 0.00 RobecoSAM S.HealthyLiv/Na £ 113.42 - -0.68 - Renminbi Bond Fund GBP Cls A £ 163.94 - -0.39 3.41 Veritas China Fund B EUR € 163.91 - 1.09 0.00

RobecoSAM S.Water/A £ 180.11 - -0.23 1.14 Renminbi Bond Fund SGD Cls A S$ 162.41 - -0.41 3.33 Veritas Global Focus Fund B USD $ 17.89 - -0.11 0.00
TreeTop Asset Management S.A. (LUX)
Putnam Investments (Ireland) Ltd (IRL) RobecoSAM S.Water/N € 160.92 - -0.21 0.00 Renminbi Bond Fund YEN Cls A ¥ 20589.00 - -53.00 0.00 Regulated Veritas Global Focus Fund B GBP £ 22.85 - -0.13 0.00
Regulated
TreeTop Convertible Sicav
Putnam New Flag Euro High Yield Plc - E € 991.42 - 0.00 4.09 Renminbi Bond Fund EUR Cls A € 110.91 - -0.29 3.35 Veritas Global Focus Fund B EUR € 15.79 - -0.09 0.00
International A € 269.38 - -0.90 0.00
Santander Asset Management UK Limited (1200)F (UK) Veritas Global Equity Income Fund B GBP £ 136.27 - 0.15 4.01
International B $ 348.47 - -1.11 0.00
287 St Vincent Street, Glasgow G2 5NB, 0845 6000 181
Authorised Funds International C £ 117.88 - -0.39 0.00 Veritas Global Equity Income Fund B EUR € 170.34 - 0.18 4.29
Managed Investments OEIC 3
SMIO3 Santander Multi Index Fund 1 152.20 - 0.50 - International D € 250.15 - -0.84 3.29 Veritas Global Equity Income Fund B USD $ 106.71 - 0.06 4.20

SMIO3 Santander Multi Index Fund 2 152.00 - 0.60 - TreeTop Global Sicav Veritas Global Real Return Fund B USD $ 21.34 - -0.09 0.00
Global Opp.A € 130.55 - -0.97 0.00
SMIO3 Santander Multi Index Fund 3 151.90 - 0.70 - Veritas Global Real Return Fund B GBP £ 12.12 - -0.05 0.00
E.I. Sturdza Strategic Management Limited (GSY)
Global Opp.B $ 131.83 - -0.80 0.00
Regulated Veritas Global Real Return Fund B EUR € 13.86 - -0.05 0.00
Nippon Growth Fund Limited ¥ 79866.00 - -5762.00 0.00 Global Opp.C £ 178.97 - -1.19 0.00
Ram Active Investments SA Strat Evarich Japan Fd Ltd JPY ¥ 70492.00 - -5314.00 0.00 Sequoia Equity A € 127.75 - -0.81 0.00 Veritas Asset Management LLP
www.ram-ai.com
Strat Evarich Japan Fd Ltd USD $ 694.07 - -53.07 0.00 www.veritas-asset.com
Other International Funds Sequoia Equity B $ 133.42 - -0.73 0.00
Other International Funds
RAM Systematic Emerg Markets Core Eq $ 79.18 - -0.19 -
Sequoia Equity C £ 162.24 - -1.00 0.00 Real Return Asian Fund USD (Est) € 277.60 - -26.20 0.00
RAM Systematic Emerg Markets Eq $ 144.69 - -0.49 -
Schroder Property Managers (Jersey) Ltd E.I. Sturdza Funds PLC (IRL) Real Return Asian Fund GBP (Est) £ 296.77 - -7.03 0.00
Other International Funds Regulated
RAM Systematic European Eq € 359.15 - -2.12 -
Indirect Real Estate SIRE £ 132.61 139.41 -0.31 2.94 Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 867.17 - -0.55 0.00 Unicapital Investments (LUX) Real Return Asian Fund EUR (Est) $ 292.91 - -10.89 0.00
RAM Systematic Global Shareholder Yield Eq $ 99.24 - -0.49 0.00 Regulated
Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1021.33 - -0.64 0.00 Investments III € 5.03 - -22.38 -
RAM Systematic Long/Short Emerg Markets Eq $ 119.10 - -0.09 -
SIA (SIA Funds AG) (LUX) Nippon Growth (UCITS) Fund JPY Class A shares ¥ 80569.00 - -52.00 0.00 Waverton Investment Funds Plc (1600)F (IRL)
Investments IV - European Private Eq. € 214.33 225.05 -33.42 -
Regulated waverton.investments@citi.com
RAM Systematic Long/Short European Eq € 141.31 - -0.13 -
LTIF Classic € 322.64 - -3.31 0.00 Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 67529.00 - -44.00 0.00 Investments IV - Global Private Eq. € 321.82 337.91 -44.60 - FCA Recognised
RAM Systematic North American Eq $ 229.11 - -2.24 - Waverton Asia Pacific A USD $ 17.58 - -0.01 5.12
LTIF Natural Resources € 75.04 - -1.44 0.00 Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 82212.00 - 968.00 0.00

Asset Management
RAM Tactical Convertibles Europe € 139.42 - -0.31 - Waverton Global Bond Fund Cls A $ 8.50 - -0.01 5.56
Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 43800.00 - -28.00 0.00

Asset Management Asset Management

LTIF Stability A ACCU € 157.19 - -0.84 0.00
RAM Tactical Global Bond Total Return € 141.74 - 0.19 - Waverton Global Equity Fund A GBP £ 14.28 - -0.09 0.56
Strategic China Panda Fund USD $ 2037.79 - -2.17 0.00
RAM Tactical II Asia Bond Total Return $ 129.27 - 0.11 - Waverton UK Fund A GBP £ 12.94 - 0.05 1.92
SIA (SIA Funds AG) (CH) Strategic China Panda Fund Hedged EURO € 1980.40 - -2.22 0.00
Other International Fds Waverton Equity Fund A GBP £ 14.53 - 0.02 0.19
LTIF Stability Growth SFr 185.50 - -3.00 - Strategic China Panda Fund Hedged Sterling £ 2009.53 - -2.17 0.00
Value Partners Hong Kong Limited (IRL) Waverton Sterling Bond Fund A GBP £ 9.35 - 0.00 5.40
LTIF Stability Inc Plus SFr 159.20 - -2.60 0.56 Strategic Euro Bond Accumulating Class CHFSFr 987.40 - 0.03 0.00 www.valuepartners.net, fis@vp.com.hk
Regulated
Strategic Euro Bond Institutional Class EUR € 1018.49 - 0.05 0.00
Value Partners Asia ex-Japan Equity Fund $ 8.45 - 0.01 - WA Fixed Income Fund Plc (IRL)
Standard Life Wealth (JER) Strategic Euro Bond Fund Accumulating Class Shares € 1140.85 - 0.05 0.00 Regulated
PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 Value Partners Classic Equity Fund USD Z Unhedged $ 10.26 - -0.01 0.00
European Multi-Sector € 115.90 - -0.07 0.00
Robeco Asset Management (LUX) FCA Recognised Strategic Euro Bond Fund Distributing Class Shares € 1030.24 - 0.05 1.32
Value Partners Classic Equity Fund CHF HedgedSFr 10.68 - -0.01 0.00
Coolsingel 120, 3011 AG Rotterdam, The Netherlands. Standard Life Offshore Strategy Fund Limited
Strategic European Smaller Companies Fund EUR Class € 957.98 - -5.98 -
www.robeco.com/contact Bridge Fund £ 1.6258 - -0.0026 1.97 Value Partners Classic Equity Fund EUR Hedged € 10.81 - -0.01 0.00 Yapi Kredi Asset Management (TUR)
FCA Recognised Yapi Kredi Plaza A Blok Kat:13 Levent 34330 Istanbul / Turkey
Strategic Global Bond RMB Acc $ 1094.91 - 2.74 0.00
Asia-Pacific Equities (EUR) € 121.22 - 0.63 0.00 Diversified Assets Fund £ 1.1770 - -0.0005 2.85 Value Partners Classic Equity Fund GBP Hedged £ 11.07 - -0.01 0.00 Email: info@ykportfoy.com.tr; Tel: + 90 (212) 385 48 48
Strategic Global Bond USD Acc $ 1068.22 - 3.37 0.00 www.yapikrediportfoy.com.tr
Chinese Equities (EUR) € 65.91 - -0.25 0.00 Global Equity Fund £ 1.9167 - -0.0127 1.02 Value Partners Classic Equity Fund GBP Unhedged £ 12.32 - 0.02 0.00
Other International Funds
Strategic US Momentum and Value Fund $ 722.56 - -9.54 0.00
Em Stars Equities (EUR) € 160.10 - 0.32 0.00 Global Balanced Fund - Income Units £ 1.3747 - -0.0026 1.83 Value Partners Classic Equity USD Hedged $ 12.60 - -0.01 0.00 Private Sector Bonds and Bills FundTRY 0.01 - 0.00 -
Strategic US Momentum & Value Fund USD I Class $ 480.75 - -6.35 0.00 Eurobond (Dollar) Bonds and Bills FundTRY 0.08 - 0.00 -
Emerging Markets Equities (EUR) € 133.86 - -0.81 0.00 Global Balanced Fund - Accumulations Units £ 1.6084 - -0.0031 1.79 Value Partners Greater China Equity Fund $ 7.94 - 0.01 -
Strategic US Momentum and Value EUR Hedged Class EUR € 503.27 - -6.68 0.00 Fourth Variable Fund TRY 0.02 - - -
Flex-o-Rente (EUR) € 111.53 - 0.07 0.00 Global Fixed Interest Fund £ 0.9863 - 0.0005 5.00 Value Partners Health Care Fund RMB Class Z UnhedgedCNH 9.34 - 0.03 -
Strategic US Momentum and Value CHF Hedged Class CHFSFr 499.65 - -6.63 0.00 Koc Affiliate and Eq. Fund (Eq. Intense Fund)TRY 0.79 - -0.01 -
Glob.Consumer Trends Equities (EUR) € 144.28 - -1.36 0.00 Sterling Fixed Interest Fund £ 0.8455 - 0.0010 4.18 Value Partners Health Care Fund HKD Class A UnhedgedHK$ 8.88 - 0.04 -

High Yield Bonds (EUR) € 126.71 - -0.17 0.00 UK Equity Fund £ 1.8749 - 0.0046 2.77 Value Partners Health Care Fund USD Class A Unhedged $ 8.90 - 0.03 - Istanbul Hedge Fund TRY 0.01 - 0.00 -
The Hartford International Funds (IRL)
Lux -O- Rente (EUR) € 149.55 - 0.27 0.00 Regulated
Gbl Govt Bond (Ex Japan) Index (GBP) £ 1782.96 - 1.80 0.00 Veritas Asset Management LLP (IRL)
New World Financials (EUR) € 45.60 - -0.61 0.00
HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
UK Corporate Bond £ 1622.13 - 2.16 0.00
US Premium Equities (EUR) € 175.02 - -2.48 0.00 Veritas Funds Plc
Gilt £ 1651.74 - 1.19 0.00 www.veritas-asset.com
US Premium Equities (USD) $ 195.83 - -2.77 0.00 +353 1 635 6799
Global Eq (Ex Japan) Index Fund ¥ 1.34 - -0.01 0.00 FCA Recognised
Stenham Asset Management Inc Institutional Yuki International Limited (IRL)
Global Eq (ex Japan) Class HJ4 ¥ 1.40 - -0.01 0.00 Veritas Asian Fund A USD H $ 309.29 - -0.58 0.43
www.stenhamassetmanagement.com Tel +44-20-7269-0207 www.yukifunds.com
Other International Funds Global Eq (ex Japan) Class JP5 ¥ 1.35 - -0.04 0.00 Regulated
Veritas Asian Fund A GBP H £ 408.34 - -0.72 0.23
Stenham Asia USD $ 117.43 - -4.20 - Yuki Mizuho Umbrella Fund
Global Eq Ex Japan Index Fund (Hedge) ¥ 1.24 - -0.04 0.00 Yuki Mizuho Japan Dynamic Growth ¥ 6227.00 - 68.00 0.00
Veritas Asian Fund A EUR H € 309.79 - -0.58 0.22
Stenham Credit Opportunities A Class USD $ 96.60 - -1.00 0.00
Gbl Govt Bond (Ex Japan) Index ¥ 1.25 - -0.02 0.00 Yuki Mizuho Japan Large Cap ¥ 777.62 - -0.38 0.00
Veritas China Fund A USD $ 127.02 - -0.87 0.40
Stenham Equity UCITS USD $ 133.56 - 0.43 0.00
S W Mitchell Capital LLP (CYM) Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.22 - -0.02 0.00 Yuki Japan Low Price ¥ 23270.00 - 260.00 0.00
Regulated Veritas China Fund A GBP £ 131.54 - -0.89 0.41
Stenham Growth USD $ 197.42 - -6.16 -
S W Mitchell European Fund Class A EUR € 275.62 - -53.33 - Japan Equity Index Fund ¥ 0.90 - 0.01 0.00 Yuki Japan Value Select ¥ 11859.00 - 145.00 0.00
Veritas China Fund A EUR € 125.26 - -0.85 0.41
Stenham Healthcare USD $ 157.30 - -4.71 0.00
S W Mitchell Small Cap European Fund Class A EUR € 214.16 - -17.22 - Japan Equity Class JP3 ¥ 1.09 - 0.02 0.00 YMR Umbrella Fund
Veritas Global Equity Income Fund D USD $ 112.18 - 0.06 4.17
Stenham Managed Fund USD $ 106.29 - -2.42 - YMR N Growth ¥ 10931.83 - -2753.17 0.00
The Charlemagne Fund EUR € 247.09 - -68.80 -
Veritas Global Equity Income Fund D EUR € 191.62 - 0.20 4.26
Stenham Macro UCITS USD $ 98.97 - -0.57 0.00 Yuki Asia Umbrella Fund
The National Investor (TNI)
Veritas Global Equity Income Fund D GBP £ 155.02 - 0.18 3.97 Yuki Japan Rebounding Growth Fund JPY Class ¥ 21656.00 - 278.00 0.00
Stenham Multi Strategy USD $ 110.26 - -1.91 - www.tni.ae
S W Mitchell Capital LLP (IRL) Other International Funds Veritas Global Focus Fund D USD $ 25.73 - -0.15 0.64 Yuki Japan Rebounding Growth Fund USD Hedged Class $ 845.89 - 10.78 -
Regulated Stenham Quadrant USD A $ 397.89 - -1.54 - TNI Blue Chip UAE Fund * AED 10.35 - -0.04 0.00
SWMC European Fund B EUR € 13427.02 - -183.73 0.00
Veritas Global Focus Fund D EUR € 22.79 - -0.13 0.65
Stenham Trading Inc USD $ 115.22 - -0.42 - TNI Funds Ltd (BMU)
SWMC UK Fund B £ 10935.51 - -39.35 0.00
MENA Hedge Fund $ 954.01 - 32.16 0.00 Veritas Global Focus Fund D GBP £ 31.03 - -0.17 0.60 Zadig Gestion (Memnon Fund) (LUX)
Stenham Universal USD $ 412.25 - -5.99 - FCA Recognised
SWMC Small Cap European Fund B EUR € 12659.32 - -5.11 0.00 Memnon European Fund I GBP £ 115.10 - -0.79 0.00
TNI Funds Plc (Ireland) Veritas Global Focus Fund A GBP £ 29.95 - -0.16 0.34
Stenham Universal II USD $ 152.53 - -2.29 0.00
SWMC Emerging European Fund B EUR € 8908.04 - -64.07 0.00 MENA UCITS Fund * $ 997.53 - -16.31 0.00
Veritas Global Focus Fund A EUR € 13.28 - -0.07 0.37

Veritas Global Focus Fund A USD $ 24.81 - -0.15 0.37

Zebedee Capital Partners LLP (CYM)
Stratton Street Capital (CI) Limited (GSY)
Regulated
Regulated
Veritas Global Focus Fund C GBP £ 32.54 - -0.17 0.00 Zebedee Focus Fund Limited Class A EURO Shares € 170.52 - 1.47 0.00
Japan Synthetic Warrant Yen Class ¥ 1314.45 - -27.77 0.00
Veritas Global Focus Fund C EUR € 24.00 - -0.14 0.00 Zebedee Focus Fund Limited Class B USD Shares $ 238.66 - 2.19 0.00
Japan Synthetic Warrant GBP Hedged Class £ 141.76 - 15.16 0.00
Veritas Global Focus Fund C USD $ 27.03 - -0.17 0.00 Zebedee Focus Fund Limited Class A USD $ 200.56 - 1.49 0.00
Japan Synthetic Warrant USD Class $ 15.20 - -0.27 0.00

RobecoSAM (LUX) Japan Synthetic Warrant USD Hedged Class $ 140.59 - 14.87 0.00
Toscafund Asset Management LLP (UK) Veritas Global Equity Income Fund A GBP £ 148.43 - 0.17 3.98
Tel. +41 44 653 10 10 http://www.robecosam.com/ www.toscafund.com
Authorised Funds Veritas Global Equity Income Fund A EUR € 185.99 - 0.19 4.27
Regulated Renminbi Bond Fund AUD Cls A A$ 123.18 - -0.31 3.32
RobecoSAM Sm.Energy/A £ 11.72 - -0.11 1.60
Renminbi Bond Fund AUD Cls B A$ 125.17 - -0.31 3.10
Aptus Global Financials B Acc £ 2.81 - -0.04 4.69
Veritas Global Equity Income Fund A USD $ 107.85 - 0.05 4.18 Data Provided by
RobecoSAM Sm.Energy/N € 11.02 - -0.10 0.00 Aptus Global Financials B Inc £ 2.46 - -0.03 4.85
Veritas Global Equity Income Fund C GBP £ 181.06 - 0.20 -
Renminbi Bond Fund CHF Cls A SFr 118.67 - -0.31 3.43
RobecoSAM Sm.Materials/A £ 126.83 - -0.47 1.38 Veritas Global Equity Income Fund C EUR € 226.50 - 0.23 -
Renminbi Bond Fund CHF Cls B SFr 118.60 - -0.31 3.17
Toscafund Asset Management LLP
RobecoSAM Sm.Materials/N € 135.61 - -0.50 0.00 www.toscafund.com Veritas Global Equity Income Fund C USD $ 130.85 - 0.07 -
Renminbi Bond Fund CNH Cls A CNH 129.87 - -0.13 3.28
Other International Funds
RobecoSAM Sm.Materials/Na € 93.60 - -0.34 - Veritas Global Real Return Fund A USD $ 22.03 - -0.09 0.28
Renminbi Bond Fund CNH Cls B CNH 129.73 - -0.13 3.04 Tosca A USD $ 265.33 - -8.78 -
RobecoSAM Gl.Small Cap Eq/A £ 80.12 - -0.74 1.26
Renminbi Bond Fund Euro Cls B € 120.75 - -0.31 3.10 Tosca Mid Cap GBP £ 259.86 - 8.73 0.00
Veritas Global Real Return Fund A GBP £ 12.37 - -0.05 0.30
www.morningstar.co.uk
RobecoSAM Gl.Small Cap Eq/N € 148.34 - -1.38 0.00 Veritas Global Real Return Fund A EUR € 12.98 - -0.06 0.11
Renminbi Bond Fund GBP Cls B £ 123.15 - -0.30 3.16 Tosca Opportunity B USD $ 356.54 - 15.70 0.00 Data as shown is for information purposes only. No
RobecoSAM Sustainable Gl.Eq/B € 168.74 - -1.60 0.00 Retail offer is made by Morningstar or this publication.
Renminbi Bond Fund SGD Cls B S$ 122.77 - -0.31 3.08 Pegasus Fund Ltd A-1 GBP £ 60.39 - -0.26 0.00
Veritas Asian Fund B USD $ 215.36 - -0.43 0.00
16 | FTfm
The week
C BlackRock, Pimco and 12
other institutional investors are
taking legal action against the
Portuguese central bank, which
they have accused of
discrimination on the grounds
of nationality.
The asset managers incurred
losses when their investments
in bonds from Novo Banco, a
Portuguese bank set up in
2014, were wiped out in a move
approved by the Bank of
Portugal.
The lawsuit is being watched
carefully following the
introduction of EU rules that
put investors in the line of fire
to avert the need for taxpayer
bailouts.
C US mutual funds
underperformed the equity
market by the biggest margin
in nearly two decades after a
turbulent first quarter
wrongfooted many active
managers. Just 19 per cent of
US mutual funds that
invest in S&P 500
companies
outperformed
the index in
the first quarter,
according to Bank of
America Merrill Lynch, the
lowest success rate since 1998.
C ValueAct, the $16bn hedge
fund led by Jeffrey Ubben, has
been sued by the US
government for stakebuilding in
Halliburton and Baker Hughes
in a legal case that could restrict
activist investors’ ability to
influence merger deals.
Baker Hughes agreed to a
$38bn takeover by Halliburton
in 2014 but the plan to merge
two of the world’s largest oil
services groups has attracted
scrutiny from US and European
competition authorities.
ValueAct intends to fight,
arguing that the lawsuit will
damage shareholders’ ability to
engage with companies.
BlackRock, Pimco and 12 other investors’ investments in
bonds from Novo Banco were wiped out — Thomas Meyer/Bloomberg
FINANCIAL TIMES Monday 11 April 2016
NEWS
THE LAST WORD QUOTE OF THE WEEK
John Plender INSIDE AND Devin Nunes, US
Demographics are
about to reverse the ONLINE Republican congressman
‘Many cities and states are
disinflationary trend that critically underfunding their
has been in place since pensions. When these funds
the 1980s. Do not go insolvent, they will create VIDEO
discount the possibility problems so disastrous that Oil on troubled markets
John Authers explains a
that rates could be lower the fund officials assume
for less long than the the federal government will terrible quarter for active
Chris Cummings, new head markets now assume have to bail them out’ equity fund managers
of the UK’s IA PAGE 9 PAGE 1 VIDEO.FT.COM/FTFM
C The UK’s Investment
Association has chosen City
lobbyist Chris Cummings as its
new chief executive, six months
after Daniel Godfrey was ousted
as leader of the trade body.
Mr Cummings is joining the
association, whose 200
members account for £5.5tn of
combined assets, from
TheCityUK, a think-tank that
lobbies on behalf of British
financial services companies.
C Glencore, the miner and
commodity trader, sold a 40
per cent stake in its $6.25bn
agricultural business to the
Canada Pension Plan
Investment Board last
week.
The Canadian
pension fund plans to
invest about $10bn
in agriculture and
the Glencore deal provided
an opportunity to deploy a
large chunk in one transaction.
C The UK regulator has
uncovered serious problems in
how asset managers sell funds
to investors, highlighting
“closet trackers” that are
marketed as actively managed
when they in fact closely follow
a benchmark. The Financial
Conduct Authority said five
unnamed investment
managers had incorrectly sold
actively managed products in
this way. But the FCA refused
to say if they would be fined or
if investors in the funds would
be told about the findings.
Edited by Chris Flood