Zuma off loads blame for SA’swoes on global economic crisisBy Andrew England in Durban

South African President JacobZuma has rejected criticism ofhis first three years in office,blaming his country’s economicand social woes on the legacy ofapartheid and the global eco-nomic crisis.

The past 12 months have beensome of the most turbulent inthe country’s post-apartheid his-tory, as it has battled poverty,unemployment and violentstrikes. Some 50 people havebeen killed – including 34 pro-testers shot by police – and thecontinent’s largest economy hasseen its credit rating down-graded by the three main rat-ings agencies.

But in his first newspaperinterview since re-election ashead of the governing AfricanNational Congress last month,Mr Zuma told the FinancialTimes that while there wereconcerns about investors leav-

ing the country, they should seeSouth Africa as a nation wherethere is “consistency” and “cer-tainty”. “There’s a certaintythat the ANC is going to be ingovernment, the ANC has poli-cies that are very certain andare very clear,” Mr Zuma said.“As an investor those are thethings I would look at, I wouldnot look at what people say.”

Mr Zuma, 70, last monthfended off challenges to securean overwhelming victory in acontest for leadership of theANC. The result means he willlead South Africa’s dominantparty into national elections in2014 and is likely to stay inoffice until 2019.

But Mr Zuma’s first term hasbeen blighted by criticisms thathe has been a weak leader andsoft on corruption, while thecountry’s social and economicpressures mount. When asked ifhe would change his leadershipstyle in his second term, Mr

Zuma dismissed the suggestion.“That is just a perception that

there’s been a weaker leader-ship, it’s a perception that has[been] built and people believein it, but it’s totally out of order.We have taken very seriousdecisions,” he said. “At govern-ment level, we reconfigured gov-ernment, we introduced newdepartments, we have beenreshuffling ministers.”

There have also been com-plaints about policy uncertaintyand concerns that corruption isincreasing as the ANC isplagued by ugly factionalism.Going forward he says: “SouthAfrica is going to be different.There’s going to be infrastruc-ture, education is going to be farbetter, we are going to reducethe levels of poverty, we aregoing to deal with inequality.That’s the presidency you aregoing to be looking at.”

Zuma’s optimism, Page 3

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Wk’s

Jan 11 Jan 4 chg%

S&P 500 1472.05 1466.47 0.38

Nasdaq Comp 3125.64 3101.66 0.77

Dow Jones Ind 13488.43 13435.21 0.40

FTSEurofirst 300 1163.4 1167.24 -0.33

Euro Stoxx 50 2717.79 2709.35 0.31

FTSE 100 6121.58 6089.84 0.52

FTSE All-Share UK 3209.56 3191.1 0.58

CAC 40 3706.02 3730.02 -0.64

Xetra Dax 7715.53 7776.37 -0.78

Nikkei 10801.57 10688.11 1.06

Hang Seng 23264.07 23331.09 -0.29

FTSE All World $ 230.7 229.12 0.69

COMMODITIES

Wk’s

Jan 11 Jan 4 chg

Oil WTI $ Feb 93.56 93.09 0.47

Oil Brent $ Feb 110.64 111.31 -0.67

Gold $ 1,675.25 1,663.35 11.90

Wk’s

price yield chg

US Gov 10 yr 97.78 1.87 -0.04

UK Gov 10 yr 97.19 2.07 -0.02

Ger Gov 10 yr 99.27 1.58 0.05

Jpn Gov 10 yr 99.86 0.82 -0.03

US Gov 30 yr 94.08 3.05 -0.06

Ger Gov 2 yr 99.74 0.14 0.06

Wk’s

Jan 11 Jan 4 chg

Fed Funds Eff 0.14 0.17 -0.03

US 3m Bills 0.07 0.07 -

Euro Libor 3m 0.13 0.13 0.00

UK 3m 0.57 0.57 -

Jan 11 Jan 4

$ per € 1.335 1.304

$ per £ 1.612 1.604

£ per € 0.828 0.813

¥ per $ 89.08 88.04

¥ per £ 143.6 141.2

$ index 81.90 82.30

SFr per € 1.218 1.208

Jan 11 Jan 4

€ per $ 0.749 0.767

£ per $ 0.620 0.624

€ per £ 1.208 1.229

¥ per € 118.9 114.8

£ index 82.90 83.50

€ index 92.97 91.25

SFr per £ 1.471 1.486

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EU to set out bigtelecoms reformBrussels will lay downreforms this year to supportthe formation of a pan-European telecoms marketintended to foster greatercompetition and investment.Page 13; Lex, Page 12

Mali militants strikeFrench aircraft attackedIslamist militants in thenorthern Malian city of Gao,a rebel stronghold far fromthe front lines. Page 3

Banks’ margins shrinkBig US banks are set toreport the thinnest marginsbetween the rates theyborrow and lend since the1950s. Page 13; Lex, Page 12;John Authers, Page 14

Brokers in spotlightOpposition is growingagainst a return to thepractice of insurance brokersreceiving payments fromunderwriters that critics saygive them incentives toavoid pursuing policyholders’claims. Page 13; Increaseddisclosure, Page 15;www.ft.com/vftt

Test for Merkel partyThe German state of LowerSaxony will go to the pollsnext Sunday, in a vote thatcould set an uncomfortableprecedent for Angela Merkelas she prepares for thecountry’s general election inSeptember. Page 2

US lumber prices upUS lumber prices are near aneight-year high as demandrises on the back of increasedhome construction. Page 13

Retrial for MubarakA retrial has been orderedfor Hosni Mubarak, theformer Egyptian presidentsentenced last year to life inprison in connection withthe 2011 murder ofdemonstrators. Page 2

Resistance to HagelChuck Hagel’s nomination asUS secretary of defence facedmore resistance yesterday.Page 4

Abe seeks targetJapan’s prime ministerratcheted up the pressure onthe country’s central bank tostep up its fight againstdeflation by saying hewanted it to achieve a 2 percent inflation target within afew years. Page 2

Wildfires fuel debateRecord heatwaves inAustralia have rekindledcontroversy on the causesand politics of extremeweather events. Page 4

Malaysian poll hopesMalaysia’s opposition isconfident that it stands itsbest chance yet of turningpolitics upside down.Page 4

Israel settlement vowIsrael’s prime minister vowedto press ahead withconstruction of a settlementon Palestinian land east ofJerusalem. www.ft.com/mideast

Praise for Monti

Italy’s Democratic party, whosecentre­left alliance is favouriteto win next month’s election,has extended an olive branchto prime minister Mario Monti,above, praising his governmentfor restoring Italy’s credibilityand saying their parties shouldco­operate after the vote. TheDemocratic party’s StefanoFassina said a centre­leftgovernment would not boostspending unilaterally.

Report, Page 2

News Briefing

EUROPE Monday January 14 2013

Separate sectionFTfmFund management update

By Peter Spiegel in Brussels

Eurozone countries facingIreland-style bank collapses willstill have to shoulder a largeportion of future bailouts if theywant to receive any aid from theeurozone’s €500bn rescue fund,according to a proposal seen bythe Financial Times.

The plan, circulated late lastyear among eurozone financeministry officials, would forcestruggling countries to eitherinvest in failing banks alongsidethe rescue fund, the EuropeanStability Mechanism, or guaran-tee the ESM against any losses.

By forcing burden-sharing onstruggling countries, the planraises questions about EU lead-ers’ vow to “break the viciouscircle” between failed banks andtheir host governments.

In Ireland, Cyprus and Spain,billions of euros in nationalfunds needed for bank bailoutsexploded sovereign debt levels,forcing Dublin and Nicosia intofull-blown government bailoutsand pushing Madrid to theprecipice of a similar rescue.

Many in Ireland and Spainhad hoped that proposals for so-called direct recapitalisations infailing banks by the ESM,agreed in June, would be agame changer that would shiftthe cost of bank bailouts fromtheir sovereign books on to theESM, which is funded by all 17members of the single currency.

A full shift would end one ofthe most poisonous dynamics ofthe eurozone crisis and protectsovereign governments frombeing brought low by bank res-cues that, in the case of Ireland,amounted to 40 per cent of GDP.

Instead, the two-page proposaldrafted by the European Com-mission would force countriesthat could afford it to injecttheir own national funds intofailing banks to make them via-ble before the ESM would shellout any of its own cash.

In the case of a country thatwould face insolvency after abank bailout, the national gov-ernment would still have to“indemnify the ESM for anyloss”, or guarantee the ESMwould get all its money back.

“Member states’ complacencyhas been evident in the politicsof ESM direct bank recapitalisa-tions for some time,” saidMujtaba Rahman, a Europe ana-lyst at the Eurasia Group riskconsultancy. “We are far fromthe clean break between banksand sovereigns leaders signedup to in June.”

Senior eurozone officialsdeclined to comment on thedraft, other than to say EU lead-ers had given them until Juneto come up with a final decisionand that the draft was likely tobe changed in the interim.

The issue is acute for Ireland,whose €67.5bn bailout fundingruns out in November. Irish offi-cials have become increasinglyvociferous that they wouldstruggle to convince the bondmarket to fully fund the govern-ment this year without somerelief on the €64bn it has spentto rescue Irish banks.

Under the plan seen by theFT, Ireland could potentially getsome relief from the ESM,although it is likely to be only asmall portion of the €28bn itused to bail out its two surviv-ing big banks.

EU redraftsplans forbank rescuefundingMove to make countries shoulder debt

Pollution gauge Toxic smog envelops Beijing

Two men walk along a railway track in Beijing as the Chinese capital was blanketed in a thick, foul­smelling layer of hazardous smogover the weekend that hit air quality and prompted environmentalists to call it the worst air pollution on record Report, Page 4 AFP

By Patrick Jenkins in London

Goldman Sachs is among ahandful of banks consideringdelaying UK bonus payoutsuntil after April 6 when the toprate of income tax falls from50 per cent to 45 per cent.

The bank’s plan, whichrelates to bonuses deferredfrom 2010, 2011 and 2012, ratherthan new awards, is expected toprove controversial despitebeing legal.

Until recently many banksand other large companies hadbeen toying with the idea ofdelaying bonuses from theirtraditional payout dates in Jan-uary, February and March untilafter the April 6 stepdown inthe tax rate.

But the vast majority ofbanks have concluded that

amid a hostile attitude towardsanything that looks like taxavoidance, it would be reputa-tionally damaging to pressahead with such a plan.

About half of the top 20banks in the City had consid-ered delaying UK payouts, inline with Goldman’s move,according to bank insiders andpay consultants. Moving bonusdates forward and back by afew weeks to optimise tax lia-bilities saved individuals – andcost the government – at least£16bn in 2010, when payoutswere brought forward to avoidthe new 50 per cent rate, intro-duced in April of that year,according to the Office forBudget Responsibility.

Insiders at Credit Suisse,which will also pay prior-yeardeferred bonuses to UK staff

after April 6, said the bank hadfollowed a similar timetable forthe past two years, so thescheduling was not motivatedby the cut in the 50 per cent taxrate. Bankers said the onlyother institutions planningdelayed payouts were smalloperators, such as boutiquemerger and acquisitions advi-sory firms.

Goldman’s approach mirrorsits opportunistic move in theUS to release bonuses to staffon December 31, hours beforeCongress voted to increasetaxes for anyone earning morethan $400,000 a year as part ofthe fiscal cliff deal.

The 50 per cent tax rate,introduced by the Labour gov-ernment in 2010, applies to any-one earning more than £150,000.A banker paid a £100,000 bonus

on top of a £150,000 salarywould save £5,000 in tax if thebonus was paid after April 6.

“I don’t think many, if any,banks will end up [delaying]their bonus payments,” saidBill Cohen, partner at Deloitte.“It would be sensible house-keeping rather than aggressivetax planning. But there is agrowing concern about the rep-utational damage of large firmsbeing seen to avoid tax.”

Banks’ change of heart fol-lows the political attack onStarbucks last year, when itemerged that the coffee chainpaid small amounts of tax inthe UK despite having a largeoperation in the country. Thebacklash prompted it to pledgea voluntary £20m tax payment.

Analysis, Page 5

UK taxman set to lose out to Goldman

Leading Handelsbankenback to the futureMonday interview, Page 10

Unsafe offshoreTax tide turns against multinationals, Page 5

JANUARY 14 2013 Section:FrontBack Time: 13/1/2013 - 20:22 User: kallmanng Page Name: 1FRONT EUR, Part,Page,Edition: EUR, 1, 1

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Like London buses,European anniversariestake a long time comingand then arrive all atonce.

Angela Merkel andFrançois Hollande, theGerman chancellor andFrench president, willlead celebrations onJanuary 22 marking the50th anniversary of theElysée treaty of postwarFranco-Germanreconciliation. Only tindiplomatic ears, or mindsclosed by arrogance, canexplain why British policymakers fail to care thatParis and Berlin might beoffended if UK premierDavid Cameron choosesthat date for his long-awaited speech onEurope.

Perhaps the British arethinking of another, moreunpleasant 50thanniversary that passedlast month largelyunnoticed across Europe.In December 1962 Charlesde Gaulle, France’s thenpresident, vetoed Britain’sapplication to join theEuropean EconomicCommunity, forerunner ofthe EU.

That episode recallshow some of the UK’sallies have alwaysquestioned whetherBritain’s imperial past, itsisland geography and itssense of comfort in theEnglish-speaking worldmake it a suitable partnerfor building a unitedEurope. Over four decadesof UK membership,however, othergovernments have founda way to accommodateBritish premiers.

For Harold Wilson, theyretouched Britain’s entryterms so that he won a1975 referendum on UKmembership. ForMargaret Thatcher, theydevised a multibillion-pound EU budget rebate.For John Major, theyaccepted that the UKneed never adopt theeuro. For Gordon Brown,they turned a blind eye in2007 when he skipped aceremony at which allother leaders signed theEU’s Lisbon treaty,arriving hours later toinitial it on his own.

Little by little, though,patience is wearing thin.Nations such as Denmark,Ireland, the Netherlandsand Sweden, which shareBritain’s free tradeoutlook or its Atlanticistforeign policy, have nowish to sit in the sameboat when the UKobstructs EU business.Poland and other

countries once inMoscow’s grip appreciatedBritish support for EUadmission in 2004-2007.But self-interest nowdictates that they keeptheir distance from amember state regarded asmarginalising itselflargely because ofdomestic party politics.

Senior Brussels policymakers, rememberingBritain’s energetic role inbuilding the EU’s singlemarket and promotingenlargement, do not wantthe UK to leave. As OlliRehn, the bloc’s monetaryaffairs commissioner anda football devotee, puts it:“If I were a Briton in theEU, I would prefer to bein the midfield as aplaymaker, rather thansitting on the sidelines asa substitute. You neverscore goals from thebench.”

There is much anxietythat Mr Cameron willcommit himself to areferendum on revisedmembership terms. Few

EU leaders see scope forextensive renegotiation:Britain already has manyoptouts, and demands foreven looser membershipmight open a Pandora’sbox. Should othercountries follow the UKlead, it would underminethe more integratedEurope that is seen, inmost EU capitals, as thekey to stabilising theeconomy.

The EU has unhappymemories of referendums,stretching fromDenmark’s “No” to theMaastricht treaty in 1992to the French and Dutchrejections of the EU’sconstitutional treaty in2005 and Ireland’s “No” tothe Lisbon treaty in 2008.EU leaders fret that, evenif Mr Cameron ran awholehearted campaign infavour of continuedmembership on revisedterms, it might blow upin his face. The EU wouldthen face its first eversplit.

For many countries, aBritish exit would bringto life an uncomfortablemodern version of the“German question”: howto maintain a stableEuropean balance ofinterests with an evermore powerful Germany,a less influential Franceand a Britain retreatinginto its shell.

Few, including theGermans, want matters toreach such a point. MrCameron’s speech maypush Europe closer to it.

Opinion, Page 9

British tin earsleave EU deafto demands forrenegotiation

‘I would prefer tobe in the midfieldas a playmaker,rather than sittingon the sidelines’

GLOBAL INSIGHT

Tony Barberin London

WORLD NEWS

By Ferdinando Giuglianoin London

Italy’s Democratic party,whose centre-left alliance isfavourite to win February’selection, has extended anolive branch to MarioMonti, praising his govern-ment for restoring Italy’scredibility and saying theirparties should co-operateafter next month’s vote.

Stefano Fassina, eco-nomic spokesman for theDemocrats, also said a cen-tre-left government wouldnot try to revive the econ-

omy by boosting govern-ment spending unilaterally.

The Democrats wouldinstead seek a grand bar-gain at the European level,which could give Brusselssweeping veto powers overnational budgets inexchange for less austerity.

During a visit to Londonto meet investors, MrFassina told the FinancialTimes he had “expecta-tions” that the centre-leftwould secure a majority inboth houses of parliament,and that Pier Luigi Bersani,leader of the alliance, wouldbe the next prime minister.

However, he acknowl-edged his coalition faced anuphill battle to win controlover the Upper House.

Mr Fassina, a former IMFeconomist and close ally of

Mr Bersani, said the centre-left wanted to co-operatewith Mr Monti’s centristalliance regardless of theoutcome in the Senate. MrFassina’s left-leaning viewswere criticised in the pastby Mr Monti as “extremist”.

The Democrats intend toavoid attacking Mr Montiduring the campaign, andinstead aim at the “newpopulism” of Beppe Grillo’sFive Star Movement andthe “old populism” of thecentre-right alliancebetween the NorthernLeague and Silvio Berlus-coni’s People of Freedom.

“We are together [withMr Monti] with respect tothe main division line thatdivides the populists fromthe Europe-ists. We sharecommon ground on the

main themes, such as con-stitutional reforms, Europeand the need for somestructural reforms,” headded.

Mr Fassina, tipped for agovernment role in the caseof a centre-left win, said theDemocrats’ main concernwas to restore economicgrowth. Italy’s national out-put is forecast to have fallen2.4 per cent in 2012. “If thereal economy does notmove, we will have troubleson the fiscal side and ondebt sustainability”, he said.

Mr Fassina ruled out Italyreneging on its Europeancommitments to expanddomestic demand under acentre-left government. “Wewill not renegotiate the fis-cal compact or our balancedbudget amendment in the

Constitution. If we actedunilaterally, we would dam-age the European project.We want to have moreroom for counter-cyclicalfiscal policy, but at theEuropean level”.

To obtain greater roomfor manoeuvre, Mr Fassinasaid the centre-left wouldbe open to the idea of asuper-commissioner on fis-cal matters, as proposed byWolfgang Schäuble, Ger-man finance minister. Theywould also seek French sup-port for this exchange.

“The residual empty andformal sovereignty over fis-cal discipline in nationalparliaments should betransferred to Europe,” hesaid. “This would be inexchange for a ‘golden rule’for public investment and a

stronger role for the Euro-pean Investment Bank”.

He denied this wouldallow Italy to dodge struc-tural reform. “This is not toavoid doing our homework.The structural reformagenda should move on. Wewant to open up the insur-ance market, pharmacies,legal services.”

But Mr Fassina said hesaw no reason for the cen-tre-left to pass a new labourmarket reform, followingthe one approved by MrMonti’s technocratic gov-ernment last year.

“It is not difficult for busi-nesses to fire people inItaly. What does not work isthe application of the law.This is why we need toreform the judiciary sys-tem,” he said.

Italy’s Democrats praise MontiParty extends olivebranch to PMLeader ‘restoredcountry’s credibility’

The German state of LowerSaxony will hold electionsnext Sunday, a vote thatcould set an uncomfortableprecedent for Angela Mer-kel as she prepares for thecountry’s general electionin September.

Opinion polls suggestthere is a good chance thatthe chancellor’s ChristianDemocratic Union will beswept out of government inLower Saxony – thanks tothe chronic weakness of itscoalition partner, the cen-tre-right Free Democrats.

“Lower Saxony couldprove a blueprint for thenational election,” saysThorsten Faas, a politicalscientist at Mainz Univer-

sity. “In both cases wecould end up with a strongand triumphant CDU,which still does not havethe power to govern thanksto the weakness of the FDP– and there’s not really thatmuch Merkel can do.”

Even Philipp Rösler, theleader of the Free Demo-cratic Party, seems toacknowledge the pressure.“Germany is doing well andLower Saxony is doing well– and it’s our responsibilityto make sure things staythat way,” he exhorts agathering of FDP faithfulon the regional electiontrail in Osnabrück.

It could be a cry of des-peration. Polling between 2and 4 per cent nationally,after getting 15 per cent inthe 2009 general election,the FDP is threatening itsally’s grip on power even asthe CDU is polling 41 to 42per cent, a five-year high.David McAllister, the half-Scottish CDU state premier,could be simply the firstvictim.

In Osnabrück, Mr Rösler

tells the crowd of 400 thathe expects the FDP to con-tinue in state governmentwith the CDU – implying afour-point bounce over thenext few days from 4-5 percent in the last polls.

The deputy chancellorand economy ministerstresses the party’s commit-ment to low taxes, fiscaldiscipline, and a stable cur-rency. He points to StefanBirkner, state justice minis-ter and state party boss,and says: “Our Lower Sax-ons are genuinely liberal,they’re genuinely likeable.”

Unfortunately for MrRösler, 20 months at thehelm of the FDP haveoffered little sign that nice-ness counts. The youthful39-year-old, born in Viet-nam and adopted by Ger-man parents, is respectedfor his polite ways. But thishas not stopped the partyhe took over from decliningto near-fatal levels.

Free Democrats whisperhe is not up to the chal-lenge of widening theappeal of the party beyond

the tax-cutting mantra ithas espoused for the last 15years. “Lower Saxony is atest whether a structurallychallenged FDP can survivewith an uncharismaticleader,” says a colleague.

The voters of Osnabrückseem to think it cannot.Arthur Krauss, 21, sellsespresso in the pedestrianzone. “The FDP’s just notrelevant. That deregulationthing might have been OK30 years ago, but other stuffis important now.”

Pensioner Helma Kempfhas switched from FDP toCDU. “Rösler can’t getthings done.” She tries toname the FDP’s state-elec-tion frontman. “Is itBirker?” she asks, omitting

an “n”. Behind closeddoors, Free Democrats arepreparing for the worst.They expect Mr Rösler toquit as party leader if theFDP fails to make it backinto government in LowerSaxony. The man mostwant to step in is RainerBrüderle, the party’s 67-year-old leader in the Bun-destag. He could team upwith Christian Lindner, theFDP’s 34-year-old star in theNorth Rhine-Westphalianstate parliament.

In Osnabrück, Mr Röslermakes a typically nice,though risky gesture – hehas agreed to appear withMr Brüderle. The partyleader is fluent and witty.But his rival’s mix of basiceconomics and beer tent isbetter. “Comrades,” MrBrüderle addresses theabsent Social Democrats,“Leave Karl Marx in hismuseum.”

Watching the unofficialface-off is Mario Stratmann,an FDP voter who will prob-ably vote CDU in LowerSaxony. He liked Mr

Brüderle. “His speech wasmore intense,” he says.“There’s been a lot of to-ingand fro-ing in the FDP. If itremains weak, I’ll continueto lean towards the CDU –but I’m here, still willing tobe persuaded otherwise.”

Oskar Niedermayer, apolitical scientist at theFree University of Berlin,says the party’s “onlychance” now is new peopleat the top. “Brüderle wouldhave a chance of re-energis-ing the FDP’s traditionalbase, while Lindner wouldstand for the future.”

Even then, Ms Merkel’sproblems might not be over.Were the FDP to scrape intothe Bundestag, with 5 percent, it could still fail towin enough seats to keepher in power, but justenough to form a majoritywith Social Democrats andGreens. “Brüderle and Lind-ner would no doubt openthe FDP for a three-partycoalition with SPD andGreens,” says Mr Nieder-mayer. “That is anotherdanger for Merkel.”

Poll to shine spotlight on Merkel’s partnersGermanyA regional electioncould provide ablueprint for thenational politicallandscape, writesGerrit Wiesmann

Philipp Rösler, right, is likely to quit as party leader if the FDP fails to make it back into government in Lower Saxony. Rainer Brüderle, left, is tipped to be his replacement Getty

By Michiyo Nakamotoin Tokyo

Japanese prime ministerShinzo Abe ratcheted upthe pressure on the Bank ofJapan to step up its fightagainst deflation by sayinghe wanted the central bankto hit a 2 per cent inflationtarget within a few years.

“We must implement poli-cies to achieve the 2 percent target in the mediumterm, or else the marketswon’t react,” Mr Abe toldNHK, the public broad-caster, yesterday.

Mr Abe, who on Fridayunveiled a Y10.3tn ($116bn)stimulus package, alsoexpressed his determinationto conclude a written agree-ment between the govern-ment and BoJ, which wouldensure the central bank isaccountable for the target.

The BoJ’s current 1 percent inflation goal does not

place responsibility on thecentral bank to achieve thatgoal and “lacks determina-tion”, Mr Abe said.

“What is important is toclearly include the 2 percent price goal. This willlead to fundamentalchange,” said the primeminister. His commentsraise the pressure on thecentral bank, which isscheduled to review its 1per cent price goal at amonthly policy meeting.

Mr Abe, who took officelate last month, has statedhis priority is to revitalisethe Japanese economythrough aggressive mone-tary easing, fiscal stimulusand bold reforms.

Friday’s stimulus meas-ures focused on infrastruc-ture spending which theAbe government has saidwill lift Japan’s grossdomestic product by 2 percent and create 600,000 jobs.

Attention is on monetarypolicy and whether the BoJwill succumb to the govern-ment’s pressure, and

replace its 1 per cent pricegoal with a 2 per cent infla-tion target.

Mr Abe has threatened torevise the Bank of JapanAct, which has been inter-preted as guaranteeing thecentral bank’s independ-ence in order to achievemore aggressive monetaryeasing than the BoJ has sofar been willing to adopt.

Yesterday, he said thenew BoJ governor who willsucceed MasaakiShirakawa, when he stepsdown in April, should be“someone who can carryout bold monetary easing”.

Mr Abe also said the gov-ernment would increase thebudget of the defence minis-try and coast guard, with-out providing details of howbig the increase might be.

Japan’s defence ministryhas asked the governmentfor more money, in a movewhich could raise its budgetfor the first time in adecade.

Editorial Comment, Page 8

Abe presses central bankto step up def lation battleBoJ urged oninflation target

By Heba Saleh in Cairo

An appeals court in Cairohas ordered a retrial forHosni Mubarak, the formerEgyptian president sen-tenced last year to life inprison in connection withthe murder of hundreds ofdemonstrators during the2011 uprising that toppledhis rule.

The judge acceptedappeals by Mr Mubarak andHabib al-Adly, his interiorminister, who is also serv-ing a life sentence in con-nection with the killings.No date has been set for theretrial.

The former president hadbeen found guilty last Juneof failing to stop the kill-ings but not of orderingpolice to open fire.

The appeals court judgealso ordered new trials forsix police chiefs who hadbeen acquitted during thesame trial of charges inrelation to the killings – aruling that provoked publicanger because it meant that

no one was convicted ofkilling the protesters.

Lawyers and prosecutorssaid at the time that theevidence was weak and thatstate security agencies andthe intelligence service hadfailed to co-operate withinvestigators.

The findings of a recentlycompleted investigationinto the killings ordered by

Mohamed Morsi, the Islam-ist president, have not beenreleased.

But according to leaks inthe press, Mr Mubarak wasable to watch the uprisingunfolding live via camerasin Tahrir Square, the centreof the revolt.

Retrials have also beenordered for Mr Mubarak’stwo sons, Alaa and Gamal,along with Hussein Salem,a close business associate,who had all been acquittedof corruption charges dur-ing the original trial inwhich the murder chargeswere heard.

Although Mr Mubarak’sappeal has been accepted,he is not expected to be setfree because he faces accu-sations in a separate cor-ruption case that has notbeen heard in court yet.

The former president,who is 84 and frail, wasmoved last month to a mili-tary hospital in a Cairo sub-urb after he slipped andinjured himself in a prisonmedical facility.

Mubarak wins retrial overkillings of Cairo protesters

‘We could end upwith a strong CDU,which still doesnot have the powerto govern’

Hosni Mubarak: is notexpected to be set free

JANUARY 14 2013 Section:World Time: 13/1/2013 - 19:19 User: puttnama Page Name: WORLD1 USA, Part,Page,Edition: EUR, 2, 1

FINANCIAL TIMES MONDAY JANUARY 14 2013 ★ 3

WORLD NEWS

When Jacob Zuma led aleadership challenge withinthe African National Con-gress against then-presidentThabo Mbeki five years ago,many saw him as theantithesis of the man hewould go on to replace.

Mr Mbeki, who had suc-ceeded Nelson Mandela ashead of state in 1999, hadbeen criticised for becomingautocratic and aloof. MrZuma was seen as a charis-matic leader who spoke thelanguage of the averageSouth African and couldheal deep rifts in the ANC.

However, since Mr Zumabecame president in 2009,South Africa’s economy hasperformed poorly, the per-ception that corruption andcronyism are on the risehas grown and the ANC hasbeen plagued by patronage-fuelled infighting.

Now, as he prepares tolead the ANC into electionsnext year, Mr Zuma insiststhat all is well on hiswatch.

“I’m very happy. In 2009, Isaid this many times, wemust do things differentlyin government and we have. . . we have been verydecisive,” he said, battingaway the suggestion he hasbeen a weak leader. “If Iwas taking decisions you

would say this Zuma is adictator, he is autocratic, hedoes not consult . . . youwould have criticism thatwould be even more terri-ble. This is democracy – indemocracy you discuss.”

He dismisses predictionsthat the ANC could losesupport in the 2014 poll,saying it “can live foranother 100 years”.

The fight against corrup-tion is “getting better” anda controversy over allega-tions that millions of dol-lars of taxpayers’ moneywas spent upgrading hisprivate residence wasfuelled by “people whodon’t know what they aretalking about”.

Yet his bullish optimismin the wake of his landslidere-election as ANC presi-dent at a party conferencelast month belies the factthat 2012 was one of themost challenging years

South Africa has enduredsince the end of whiteminority rule 18 years ago.

Between August andNovember, violent wildcatstrikes hit the mining sec-tor, during which about 50people died, including 34protesters shot by policenear in Marikana. Thestrikes were viewed asbeing symptomatic of frus-tration over poverty anddeep inequalities.

As the unrest spread,South Africa’s image as aninvestment destination wastarnished and both Moody’sand Standard & Poor’sdowngraded its credit rat-ing. Fitch did so last week.

Mr Zuma acknowledgedthe need to quicken thepace of change and improvelife for the majority ofSouth Africans. But heblamed the mining compa-nies for the Marikana crisis,arguing that they raised the

wages of rock drill opera-tors, which caused otherminers to pursue their ownwage demands, he adds.

“It was not because gov-ernment was failing to gov-ern, not at all, companieswere responsible,” Mr Zumasays.

He blames the sluggishpace of growth – the econ-omy was forecast to expandby about 2.5 per in 2012 –on the global economic cri-sis, particularly the debtcrisis in Europe whereSouth Africa ships about athird of its manufacturedexports.

“If some people are mess-ing up their economy some-where else it impacts on us,why should we be blamedfor it?” he says. “How longfor example has Europebeen in financial crisis?They can’t come out of it, itaffects us.”

In an effort to address the

social and economic ills, MrZuma says there will be a“radical shift” with greaterstate intervention in theeconomy, particularly min-ing, where he says compa-nies have not fulfilled theirobligations to support socialdevelopment.

Mining was an area “wehave got to deal with so it’snot just beneficial to a fewwho own mines, but howthat industry benefits thecountry.”

He said the governmentwould come up with a “veryclear package”, on its poli-cies for the sector at the“right time”.

A focus of his administra-tion will be a nationaldevelopment plan that hasset the ambitious target ofeliminating poverty andalmost doubling thenumber of people inemployment to 24m by 2030.The government is alsopushing a massive infra-structure spending pro-gramme in an attempt toboost growth and createjobs.

The election of Cyril Ram-aphosa, a respected formerunion leader and multimil-lionaire businessman, inDecember as the ANC’s dep-uty leader sparked specula-tion that he could take overfrom Mr Motlanthe asnational deputy presidentand ultimately succeed MrZuma. But Mr Zuma saidMr Motlanthe would remainin his post until the 2014elections.

“There’s no tension, nodilemma,” he said. “After2014, that’s a differentmatter [in terms of areshuffle].”

Zuma’s optimism belies the challengesfaced by weak South African economyDevelopment planANC presidentupbeat despite theMarikana crisis andsluggish pace ofgrowth, writesAndrew England

Jacob Zuma in Ghana’s capital Accra last week. He insists all is well on his watch AFP

France’s president FrançoisHollande has spent most ofhis first year in officeembroiled in domesticissues, but the Socialistleader’s decision to embarkon military action in Malihas thrust his largelyuntested foreign policy intothe spotlight.

Domestic issues still tookcentre stage in France yes-terday, as news channelswere dominated with cover-age of a demonstration inParis against the govern-ment’s legal approval of gaymarriage.

While that issue hasdivided the French popula-tion and its politicians, thepresident’s authorisation ofair strikes in its former col-ony secured almost unani-mous political support.“Hollande caught betweenconsensus [on Mali] andconfrontation [on gay mar-riage],” ran a headline inthe Journal du Dimanchenewspaper in a comment onthe twin issues.

The air strikes againstthe Islamist extremist fight-ers had “complete interna-tional legitimacy”, in thewords of Jean-FrançoisCopé, leader of the centre-right UMP.

But in her endorsement,Marine Le Pen, head of thefar-right National Front,hinted at potential dangersahead.

She said the “legitimate”action highlighted only thatFrance had “paved theway” for the resurgence ofIslamist groups through its2011 intervention againstLibya’s Muammer Gaddafi –which her party opposed.

While the Libyan inter-vention was led by formerpresident Nicolas Sarkozy,Mr Hollande’s most signifi-cant foreign policy actionon taking office was one ofdisengagement. This was inrelation to Afghanistanwhere his withdrawal ofFrance’s combat troops lastmonth – ahead of schedule– initially riled France’s USand UK allies in the MiddleEastern country.

Like French presidentsbefore him, Mr Hollandehas pledged to end “Franç-afrique” – a pejorative term

denoting the network ofoften corrupt influence help-ing to maintain France’spower in the region.

The unilateral decision tointervene in Mali suggeststhat adhering to that prom-ise will be as hard as it hasbeen for his predecessors.

France has economic andmining interests in theregion, including in Niger,where French and localemployees of Areva, theFrench nuclear group andVinci, the engineering com-pany, were kidnapped in2010 and smuggled acrossthe border to Mali.

Amel Boubekeur, visitingfellow at the BrookingsDoha Center and researchfellow at the EHESS inParis, said France’s decisionto intervene alone – albeitafter conferring with allies– was a surprise given MrHollande’s emphasis to dateon political dialogue andmultilateral action, whereneeded.

“He wants to reshape theregional balance, challengethe rising influence of otheractors in the region, such asChina as well as resolve thesituation on the ground,”she said. “But the war inMali is nothing new and itis not clear that Franceknows how to stabilise apolitical transition beforeembarking on the militaryintervention.”

The deployment follows aplea on Thursday from theMalian government forurgent French military helpafter Islamist forces ven-tured beyond their northernstronghold with the captureof a town farther southtowards the capital.

Jean-Yves Le Drian,defence minister said yes-terday: “The threat is that aterrorist state will be cre-ated near Europe andFrance . . . We had to reactbefore it was too late. Theywon’t succeed. We aredetermined to prevent this.”

The question now iswhether France becomesbogged down in a messymilitary conflict with noclear exit or whether theoperation will remain rela-tively limited.

France’s has no interest“other than the goal offighting against terrorism”,said Mr Hollande on Friday.

That open-ended aim andMr Hollande’s acknowledg-ment that he would take allthe time necessary toachieve it, carries the riskthat his first foreign mili-tary intervention ends upbecoming as divisive as gaymarriage.

Focus switchesto Hollande’suntested policyPresident’s strategyDespite politicalsupport for the airstrikes, potentialdangers lie ahead,says ScheherazadeDaneshkhu

Q&A

Reasons behind Paris’s decision to interveneHow did Mali get into thismess?In January 2012, secularTuareg rebels in northernMali launched the latest in along series of rebellions.They were boosted byfighters who had servedunder Muammer Gaddafi inLibya and returned withvehicles and weapons. Aseparate, Islamist­alignedgroup, known as Ansar Dine,provided help. Lackingequipment, Mali’s armysuffered several defeats. OnMarch 22, officers angeredby the lack of supportoverthrew the government.The army then withdrewfrom the north. The Tuaregswere pushed aside, leavingIslamist rebels in control ofabout two­thirds of Mali.

What is the politicalsituation now in Mali?An interim government isheaded by PresidentDioncounda Traore. Coupleader Captain AmadouSanogo last month forcedthe prime minister to resign.

Who are the Islamistrebels, what do they wantand how strong are they?There are three maingroups. Ansar Dine wantssharia law in Mali. Itsfighters have destroyedshrines in cities such asTimbuktu. Al­Qaeda in theIslamic Maghreb and itssplinter group, theMovement for Oneness andJihad in west Africa areconsidered more extreme,and committed to a holy

war. Both hold westernhostages and raise fundsfrom smuggling. Rebelnumbers are estimated to bein the low thousands. Theyinclude fighters from othercountries in the Sahel, andas far afield as Pakistan.

Is a political compromisewith the rebels possible?Ansar Dine was involved intentative talks with thegovernment late last year,but suspended a ceasefireon January 4, claiming itsdemands had not been met.

What was the regionalreaction to the rebellionand coup in Mali?West African states, underthe regional bloc Ecowas,called on Capt Sanogo to

hand back power to acivilian government. It alsopushed for 3,300 troops togo to Mali. Opposition fromcoup leaders and a lack ofsupport from westerncountries, whose financialand logistical support wouldhave been crucial, causeddelays. Ecowas troops haveyet to deploy but troopsfrom other African countriesare to arrive within days.

How has France’s decisionto intervene been receivedin Mali?Malians appear to be broadlyin support of France’s move.

Why did France lead thepro­intervention drive andwhat are what the risks ofit taking military action?

France considers theIslamists a threat to securityin the wider Sahel region,where it has economicinterests and a largeexpatriate presence. Francebelieves that allowingnorthern Mali to become aterror haven raises the riskof an attack on French soil.

Intervention, however,raises the risk of an attackon its citizens in Mali and inwest Africa. The Islamistsmay decide to take revengeon the seven Frenchhostages they hold andFrance has also stepped upsecurity at home in case ofan attack there.

If the military operation isnot a success, France risksbeing dragged into aprotracted conflict.

How is the operationexpected to unfold?French air strikes seem tobe designed to stop theIslamists advancing south,and to destroy some of theirmilitary capabilities. WhileFrance has sent more than400 troops to Bamako, itdoes not want troops directlyinvolved in combat. That willbe the job of the Malian armyand west African troops.Planning challenges and theneed for equipment mean alarge ground invasion isunlikely to take place soon.Mali’s army remains in poorshape; underequipped and ofuncertain motivation. Thereare also concerns that thewest African troops lackexperience in desert warfare.

Xan Rice, Lagos

By Xan Rice in Lagos

French aircraft yesterdayattacked Islamist militantsin the northern Malian cityof Gao, a rebel strongholdfar from the front lines.

A third day of air strikessince France answeredMali’s plea for military helpappeared to show that theformer colonial power wasintent not only to containthe al-Qaeda linked rebelsbut also to destroy theirfighting capabilities. Resi-dents of Gao, one of the cit-ies in northern Mali’sdesert, which has been con-trolled by militants for ninemonths, reported seeingwarplanes and helicoptersstrike rebel positions.

“They are bombardingthe Islamist camps,” saidAbdullahi Chawal, a Gaoresident who was in thecapital Bamako, afterspeaking to friends in thenorthern city.

One of the Islamistgroups, Ansar Dine, toldReuters that the smallertowns Douentza and Lere,

farther south, were also hit.The progression of

Islamic groups towards thesouth has been stopped andFrance has begun dealingwith the bases of the terror-ists in the north of thecountry, said LaurentFabius, French foreign min-ister, yesterday. He saidthat Algeria had authorisedFrench aircraft to fly overits territory.

French defence ministerJean-Yves Le Drian said airstrikes would continue.“The president [FrançoisHollande] is totally deter-mined that we must eradi-cate these terrorists whothreaten the security ofMali, our own country andEurope,” he told Frenchtelevision.

France decided to inter-vene on Friday after therebels advanced south, tak-ing the town of Konna fromgovernment troops. Follow-ing a French aerial attackthat reportedly killedrebels, as well as some civil-ians, the town was back inarmy hands.

More than 400 Frenchtroops have been flown into guard Bamako, and a fewspecial forces are in Mopti,in central Mali, as part of amission called OperationServal. French troops are

not expected to be part of aground offensive, which ismeant to be carried out byMali’s weak army and westAfrican forces from theregional bloc Ecowas, aspart of UN-sanctioned mis-sion – due to start in Sep-tember. But the Frenchintervention has changedthe timetable and severalAfrican countries, includingBurkina Faso, Niger and

Nigeria, have committed tosend about 500 soldiers eachto Mali, as an emergencymeasure. The troops wereexpected to arrive withindays but it was unclearwhat role they would play.

“This will not prejudicethe Ecowas force,” theregional bloc said. “Wewant to deploy that force asquickly as possible but itwill take some time.”

After a call betweenDavid Cameron, UK pre-mier, and Mr Hollande,Britain said it would sendtwo transport aircraft to theregion. “The prime ministerhas agreed that the UK willprovide logistical militaryassistance to help transportforeign troops and equip-ment,” Downing Street said.“We will not be deployingany British personnel in a

combat role.” Washingtonsaid it was consideringwhat kind of support togive to the French-led oper-ation. Options include logis-tical assistance, such ashelp with aerial refuelling,and intelligence sharing,including informationgained from surveillancedrones.

Additional reporting byGeoff Dyer in Washington

French jetsattackMalianrebel bases‘We must eradicatethese terrorists’African troops setto arrive in days

Air power: French Mirage fighters have been deployed in Mali to bombard Islamist rebels EPA

JANUARY 14 2013 Section:World Time: 13/1/2013 - 19:21 User: quinnt Page Name: WORLD2 USA, Part,Page,Edition: USA, 3, 1

4 ★ FINANCIAL TIMES MONDAY JANUARY 14 2013

WORLD NEWS

The Pennsylvania Society’sannual dinner, a black-tieaffair for state members ofCongress that dates back towhen robber barons used tochoose political candidatesbehind closed doors, cameat an opportune time forDavid Patti.

In mid-December, twoweeks before the fiscal cliffdeadline, Mr Patti, whoheads the PennsylvaniaBusiness Council and workswith the Fix the Debt cam-paign in Washington, usedthe 2012 event to press leg-islators to pass a deal toavert a debt crisis. Anydeal. “Our [congressional]members could not getaway from people” he says.“We said: ‘Look, we’ll saynice things about you, justvote for it. We know it willstink. But vote for it’.”

Mr Patti, says he was dis-appointed by the partialdeal that was agreed butthe real work lies ahead,since Congress faces a sec-ond fiscal cliff. Around theend of February, fundingfor the government will runout, automatic spendingcuts of $1.2tn over a decadewill take effect and Con-gress will be required topass an increase in the debtlimit or risk putting thenation into default.

The question now iswhether the business forcesputting pressure on law-makers and the WhiteHouse to reach a grand bar-gain – groups such as Fixthe Debt, a lobby effort bycorporate executives, andthe Business Roundtable –will have enough influenceto shape the debate, partic-ularly among Republicans.

After the new year’s dealthat saw tax rates rise forthe wealthiest, Republicanshave said they would notconsider any moreincreases. But Democratsinsist that more revenuewill have to be part of anyagreement.

While the Republicansare often seen as the repre-sentatives of big business,the party’s shift towardpopulism has created adivide between corporateinterests and the Tea Party-driven members in theHouse of Representatives.Some Republicans are qui-etly seething that businessleaders were too closelyaligned with the WhiteHouse on the push forhigher taxes in December.

Members of Congress,such as Steve Scalise ofLouisiana, a conservativeleader, portray themselvesas defenders of small busi-ness interests, not the For-tune 500, which pushed forincreases in tax rates thatRepublicans say dispropor-tionately hit small enter-prises. Mr Patti says busi-

ness is fighting a two-frontwar, with uncompromisinganti-tax advocates on oneside and the other thatadvocates public spending,saying “every governmentdollar is good”.

“Because we are glasshalf full kind of people weare saying you are bothkind of right,” he says.

Executives such as DavidCote of Honeywell andLloyd Blankfein of GoldmanSachs have called for agrand bargain between theWhite House and Republi-cans that would see a risein tax revenue and cuts ingovernment spending aswell as a comprehensiverevamp of the US tax code.

There are forces pullingRepublicans in anotherdirection, such as the Clubfor Growth, which is urgingthem to use the debt ceilingas leverage to push for “fis-cal responsibility” – codefor deep spending cuts thatDemocrats oppose.

Maya MacGuineas, a Fixthe Debt campaign leader,says executives will not beable to spur politicians intoaction but they serve as anadded source of pressure.She is careful not to pinblame on the lack ofprogress on Republicansalone. “What is frustratingto all of us is that this doesnot feel like a negotiation toget a deal done, it some-times feels like a negotia-tion to blame the otherside,” says Ms MacGuineas.

She also acknowledges thatkeeping the business coali-tion together, if a more spe-cific deal begins to takeshape that creates “winnersand losers” by closing cer-tain tax loopholes, will bechallenging.

“What we have on ourside is the reality that weare all losers if a dealdoesn’t get done,” she says.

Mr Patti also recognisesfears among some Republi-cans that a move to com-promise and agree a dealwhich would raise tax reve-nue and cut spending wouldmake them vulnerable to apossible primary challengefrom conservatives. Groupssuch as the Club forGrowth finance suchRepublican challengers. MrPatti says in such cases,business groups will haveto step in.

“No one is talking aboutquid pro quo but is there anunderlying fear of being pri-maried? I’m sure there is.And there is an underlyingrecognition that . . . will I, in2014, consider helping some-one out who has been veryconstructive in Fix the Debtand ends up being prima-ried? Yes,” says Mr Patti. “Iwant them to do the rightthing for the right reason. Ifyou show . . . courage, thenyou deserve support.”

Republicanssplit betweenTea Partyand business

By Jamil Anderlini in Beijing

Beijing was blanketed in athick, foul-smelling layer ofhazardous smog over theweekend that pushed airquality readings well off thecharts and prompted envi-ronmentalists to call it theworst air pollution onrecord in the city.

The air quality in China’scapital, home to about 20mpeople, was consistentlydesignated as hazardous bythe Chinese governmentand a monitoring stationmaintained by the USembassy throughout the

weekend and people wereadvised not to go outside.

At its worst on Saturdaynight, the level of harmfulparticulates in the airreached 36 times that rec-ommended as safe by theWorld Health Organisation.

China has strict environ-mental and emission lawsbut it also has the worstenvironmental pollution onearth thanks to a lack ofenforcement and the subor-dination of environmentalconcerns to the imperativefor officials to register eco-nomic growth.

State media said the toxicmixture of fog, coal fumes,car exhaust, constructiondust and industrial emis-sions was likely to hangaround for days thanks toatmospheric conditions thathad trapped the smog over

the city and stopped it frombeing blown elsewhere.

Residents who went out-side complained of sorethroats, stinging eyes, chestpain, headaches and anapocalyptic atmosphere inwhich the tops of low-risebuildings could barely beseen through the haze.

At one hospital on theedge of Beijing the headnurse, who asked not to be

named, told the FinancialTimes the respiratory wardwas overflowing at theweekend even though thehospital doubled the size ofthe unit last year.

“This is the worst level ofair pollution on record inBeijing according to boththe official Chinese govern-ment data and that pub-lished by the US embassy,”said Zhou Rong, climatespokeswoman for Green-peace in Beijing.

She said the main sourceof the pollution was the in-tensive burning of coal inpower plants and in peo-ple’s homes across northernChina as the region is grip-ped by a severe cold snap.

Multinational companiesand diplomatic missionsbased in Beijing considerthe capital’s shocking levels

of air pollution one of themain obstacles in attractinghigh-quality expatriate per-sonnel, especially thosewith young families. Someprovide industrial air filter-ing machines in the homesof employees.

Pollution and food safetyare also identified bywealthy Chinese emigrantsas reasons for them to leavethe country.

In recent years, China’srising wealth has beenaccompanied by greaterawareness of the healthhazards of environmentalpollution, particularlyamong the middle class.

Environmental degrada-tion has become a cause ofunrest and protest in placeswhere it has affected health.The Chinese governmenthas often tried to obfuscate

or conceal the extent ofindustrial pollution.

Environmental activistsin Beijing won an impor-tant victory last year whenthe government agreed tomonitor the levels of partic-ulate matter smaller than2.5 micrometres, somethingthe US embassy in Beijinghad been doing for yearsusing its own equipment.

These particulates areregarded as the most haz-ardous because they aresmall enough to enter thebloodstream and damagelung tissue.

At the weekend, the gov-ernment said it had rec-orded 900 micrograms ofthese particles per squaremetre, compared with ascale that usually only goesup to 500. A figure below 50is considered healthy.

Toxic smog envelops BeijingAir quality readingsfall off safety indexLack of wind todisperse fumes

Resistance to Hagel defence role

Chuck Hagel’s nominationas US defence secretaryfaced more resistanceyesterday after a seniorsenator suggested PresidentBarack Obama’s choicemight not have thetemperament for the job andothers said they were uneasywith his policies, writesStephanie Kirchgaessnerin Washington.

Republicans includingJohn McCain and LindseyGraham have expressedreservations about Mr Hagel,a former Republican senatorfrom Nebraska, but theVietnam war veteran wasendorsed by anotherRepublican, former secre­tary of state Colin Powell.

“He’s had a very, verydistinguished public servicerecord that he can standon,” Mr Powell said onNBC’s Meet the Press. “Ithink he will make a very,very spirited defence of hisposition. And I think he willbe confirmed.”

The backing wasimportant, in part becauseMr Hagel and Mr Powellhave disagreed on Iraq. MrHagel became an outspoken

critic of the Bush admini­stration’s handling of thewar and has said thatofficials had not exhausteddiplomatic efforts to avoidwar. Yesterday, Mr Powellagain defended his actions,which he says were basedon intelligence estimatesthat were proved false later.

Mr Powell, who has twiceendorsed Mr Obama,despite being a Republican,defended Mr Hagel’s supportof Israel and dismissedcriticism by some who havesuggested Mr Hagel may beanti­Semitic because he onceused the term “Jewish lobby”to refer to the Israeli lobby.

Bob Corker, a senatorfrom Tennessee, said MrHagel would face a “realhearing process” and hintedat questions into hispersonal style. “I thinkanother thing that’s goingto come up is just hisoverall temperament and ishe suited to run adepartment or a big agencyor a big entity like thePentagon” Mr Corker saidon ABC’s This Week.

See Comment

Rob Torenius had seenbush fires come close to hisfamily’s timber mill in thesoutheast Tasmanian townof Forcett – but not since1967. His son, Matthew, hadnever encountered them.

“There’s a big hill behindthe mill and it looked like avolcano: the whole hill wasalight,” said Matthew of theblaze that swept past them10 days ago.

“We were looking at thefires and Dad turned to meand said: ‘There might besomething in this climatechange thing that every-one’s talking about.’ Itdoesn’t get to 42 degrees inHobart very often.”

The father and son, witha handful of family mem-bers and mill staff, spentnearly three days fightingfires in an attempt to savethe mill. They succeeded;their neighbour across theroad was less fortunate.

In the past four yearsalone Australia has been hitby a series of natural disas-ters ranging from bush firesin 2009, in which 173 peopledied, to the Queenslandfloods in 2011 and the wild-fires that have forced thou-sands from their homessince January 3.

Such events, says DavidKaroly, a professor of cli-mate science at the Univer-sity of Melbourne, havebeen heightened by climatechange. “It’s virtually cer-tain that increased green-house gases and climatechange have increased thefrequency of very hot daysand worsened the condi-tions that lead to extremefire danger,” he says.

But the question of howto address climate change isa delicate one in a country

that is the world’s biggestexporter of coal – a richsource of carbon dioxideemissions when burnt – andwhere the mining industryaccounts for more than halfof export income.

Last year the governmentpassed a controversialscheme to limit carbonemissions but this year itfaces elections. And despitethe current fires and record-breaking heatwave, fewexpect it to take action overclimate change at a timewhen the mining industryis slashing investment inbig projects.

“The [slowing] economyhas bumped climate off thetop of the list,” says ZarehGhazarian, a politics lec-turer at Monash University.“[The government] cannotignore the power and influ-ence of the mining industry[which has] a big, big say inthe national debate.”

Climate change is a divi-sive issue, particularly inrural areas. Although farm-ers in affected areas arebeginning to change howthey manage crops and live-stock, says Guy Robinson,professor of rural healthand community develop-ment at the University ofSouth Australia, they haveno time for climate change.

“They certainly talkabout hot weather, anddrought, but talking aboutclimate change is a step toofar . . . you have to be awareof that,” says Prof Robin-son. “Some farmers will runyou off their land if youtalk about climate change.”

Nationally the conflicthas become far more parti-san in the past two yearssince the former prime min-ister Kevin Rudd wasousted by his party after

postponing efforts to bringin a carbon pricing schemeand then trying to intro-duce a mining profits tax.

In 2012, the country’sminority Labor governmentled by Mr Rudd’s successor,Julia Gillard, fought offopposition from miningcompanies to introduce acarbon pricing scheme. Ithas also pledged to spendA$13bn ($13.7bn) on financ-ing clean energy andresearching renewables.

But what had been abroad political agreement

on the need to price green-house gas emissions hasturned into a debate overwhether climate change canbe linked to human activ-ity, with some in the oppo-sition questioning its linkwith rising temperatures.

Ross Garnaut, economicsprofessor at the Universityof Melbourne and author ofthe Garnaut ClimateChange Review commis-sioned by the federal gov-ernment, says public sup-port for climate policyremains strong despite the

partisan politics. He ques-tions whether the opposi-tion will be able to makegood on its pledge to repealthe carbon tax should itwin this year’s elections.

“This may not be easy asthe community has come toaccept the carbon policies,and as [the] belief in somequarters that the science iswrong [is] being tested bymore extreme weatherevents,” says ProfessorGarnaut.

Extreme weather eventsare nothing new in Aus-

tralia. One of the country’smost popular folk songs –“My Country,” writtenmore than 100 years ago –calls Australia a land of“droughts and floodingrains”.

But, say climate scien-tists, in the years since Dor-othea Mackellar wrotethose lyrics Australia hasbecome the developednation most likely to behurt by climate change.Events over the past 10days have been a painfulreminder of that.

Wildfires fuelclimate debatein AustraliaEnvironmentRecord heatwaveshave rekindledcontroversy on thecauses of extremeweather, writesKate Mackenzie

Bush fire damage in Tasmania. Climate change is a divisive issue, particularly in Australia’s rural areas epa

By Jeremy Grantin Kuala Lumpur

In the sticky heat of a mid-day sun Effendi Kamarudin,a 24-year-old robotics stu-dent, stood patiently in athousands-strong crowd infront of the central mosquein Kuala Lumpur.

With a friend, he had justmade the two-hour-journeyfrom the coastal city ofMalacca to the Malaysiancapital, eager to be part of arally organised at a nearbystadium by the coalition ofopposition parties.

“There’s too much corrup-tion, cronyism and nepo-tism. There’s no democracy.We have to make sure thevoting process is clean,” hesaid, wearing a green ban-danna advertising his alle-giance to the Pan-MalaysianIslamic party (PAS), one ofthe three parties that makeup the Pakatan Rakyat, or“people’s alliance”.

Malaysia’s opposition has

always fought a losing bat-tle against the UnitedMalays National Organisa-tion, which has dominatedthe country since independ-ence from Britain in 1957.

But it is more confidentthan ever that, with a gen-eral election expected intwo months, it stands itsbest chance yet of turningpolitics upside down in thisethnically complex south-east Asian country of 28mpeople.

At Saturday’s rally, heldin Kuala Lumpur’s Merdeka– or “independence” – sta-dium, the opposition kickedoff its election campaignwith firebrand speechesfrom party leaders in frontof 30,000 supporters.

Any switch of power – ormerely a wafer-thin win forUmno – could change thecalculus for investors longused to continuity in Malay-sian politics. It would posea test of the new govern-ment’s ability to tackle

structural problems, suchas low government reve-nues and a debt to grossdomestic product ratio thatis one of the highest inAsia.

Najib Razak, the primeminister, faces a harder bat-tle than at the last election,in 2008, where Umno was

shocked by losing its two-thirds majority in parlia-ment for the first time.

No one is predicting thatUmno will improve on thatresult. Indeed, some ana-lysts say the result is finelybalanced and that the oppo-sition could yet snatch vic-tory, handing the premier-ship to veteran oppositionleader Anwar Ibrahim. At66 years old, he is seen asmaking his last attempt tocapture the premiership.

“I think this election isanybody’s election,” saysBridget Welsh, a politicalscientist at Singapore Man-agement University. “Najibstill has the advantage butas to whether he could lose,absolutely, because his gov-ernance has been calledinto question. The mainissues in 2008 were corrup-tion and inclusion and theycontinue to percolate.”

The opposition is hopefulthat it can win over disaf-fected voters in states such

as the overwhelminglyMalay-populated Tereng-ganu state in the north andNegeri Sembilan, just southof the capital.

Civil society groups havealso weighed in. The big-gest, known as bersih –Malay for “clean” – hasrecently attracted supportamong urban voters withits campaign for clean andfair elections.

While Pakatan Rakyathas laid itself open to gov-ernment attacks for being acoalition of parties eachwith different ethnic andpolicy mixes, its leadersinsist that there is enoughcommon ground aroundcorruption and transpar-ency on which to fight –and win – an election.

Azmin Ali, a rising star inMr Anwar’s Parti KeadilanRakyat, or people’s justiceparty, argues that thecoalition is better preparedthan when it fought thelast election.

Yet the opposition is alsovulnerable.

Mr Najib’s ruling BarisanNasional coalition – inwhich Umno is the biggestparty – can rely on strong-holds in Sarawak andSabah, on Borneo, even if itloses one or two states inPeninsular Malaysia.

Mr Najib also has theadvantage of incumbencyand can claim credit foroverseeing an economy thatcontinues to outperformmany others in relativelyhigh-growth Asia.

Last week, Malaysiarevealed industrial produc-tion had expanded by morethan expected in the fourthquarter, prompting Bar-clays to raise its estimatefor gross domestic productlast year to 5.5 per centfrom 5.2 per cent.

Mr Najib has alsobrushed aside concern fromUmno’s conservative wingto push through politicalreforms.

Malaysian opposition lives in hope of poll victory

Extreme weather

A protester at the rally inKuala Lumpur on Saturday

900µg/m2

Level of particulatesin Beijing air

50µg/m2

Level of particulatesconsidered healthy

‘There might besomething in thisclimate change thingthat everyone’stalking about’

Debt discussionsParty’s populistpolicies conflictwith its support forcorporate interests,says StephanieKirchgaessner

‘What we have onour side is thereality that we areall losers if a dealdoesn’t get done’

JANUARY 14 2013 Section:World Time: 13/1/2013 - 19:38 User: quinnt Page Name: WORLD3 USA, Part,Page,Edition: USA, 4, 1

FINANCIAL TIMES MONDAY JANUARY 14 2013 ★ 5

Taxation

Governments wantto close loopholesthat helpmultinationalsavoid tax but willhave to balanceany crackdownagainst their needto attract bigforeign investors.By VanessaHoulder

Unsafe offshore

In April 1961, a newly electedPresident John F. Kennedylaunched an offensive against aphenomenon that he feared could

undermine America’s future: aggres-sive tax avoidance.

In a message to Congress, he railedagainst the “unjustifiable” use of taxhavens by growing numbers of busi-nesses to slash their tax liabilities athome and abroad.

More than 50 years on, the politicalrhetoric seems to be identical, echoingKennedy’s broadside against “artifi-cial arrangements”. Once again, busi-nesses are under fire for using corpo-rate structures that shift profits tolow-tax jurisdictions. Political anger ismounting over the low taxes paid bymultinationals such as Apple, Googleand Amazon during an age of brutalcuts in public spending.

In the US, the powerful Senateinvestigations panel has attacked the“loopholes” and “gimmicks” used tomove earnings offshore; in Australia,a Treasury minister slammed multi-nationals’ tax practices as “not fairgame”. In Britain, David Cameron,the prime minister, sent a blunt mes-sage to business: “We’re playing fairby you; you’ve got to play fair by us.”Pascal Saint-Amans, the OECD’s toptax official, says this political pres-sure has now moved beyond rhetoricand represents a turning of the tideagainst avoidance by big business.

“The aggressive tax planning of thelast 20 years was achieved with thecomplicity of governments themselvesto cope with tax competition,” hesays. “This mindset is seriouslychanging.”

Galvanising co-ordinated action,Britain, Germany and France havethrown their weight behind an urgentreview of the international tax stand-ards, which they say, faces “difficultykeeping up with changes in globalbusiness practices, such as the devel-opment of ecommerce in commercialactivities”.

The potential reforms will start totake shape next month at a Group of20 meeting in Russia, where the Paris-based OECD will release an interimreport on tax. Governments arealready locking horns with businessesover how far the measures will go.

In November, they met to discussproposals to tighten the rules on theartificial shifting of profits to taxhavens. While these meetings are nor-mally dry, sedate affairs, the sessionin Paris was marked by a more palpa-ble sense of tension.

James Phillips, a tax executive atCGGVeritas Group, a French oil serv-ices company – but speaking at themeeting in a personal capacity –stressed what he saw as the dangersof pushing business too far. “The cur-rent financial crisis will, eventually,pass – it is far from historicallyunique. If, however, its legacy is toretrench international trade viareducing opportunities for profitablegain by institutionalising double taxa-tion its legacy will be much furtherreaching,” he said.

Despite the protestations from busi-ness, finance ministries must respondto an increasingly irate public thatfeels global tax rules have been riggedin favour of multinationals.

“All of this is taking place againstthe backdrop of anti-globalisation andprotectionism. Politicians are startingto pick up the vibe,” says JeffreyOwens, professor at the Vienna Uni-versity of Economics and Business.

Multinationals, stung by the dam-age to their reputations, accuse gov-ernments of blaming companies for a

system that the states themselvesdesigned to attract investors. WhenGoogle, which shifted billions of dol-lars from Ireland to Bermuda toachieve an overseas tax rate of just3.2 per cent in 2011, drew fire frompoliticians, Eric Schmidt, its executivechairman, insisted the tax structurewas “based on the incentives that thegovernments offered us to operate”.

Ireland, where Google employs 3,000people from 65 countries in Dublin’sformer docklands, taxes a sliver ofprofit from the billions of the Google’soverseas sales which are booked inthe country. This is achieved byGoogle’s use of a “double Irish” struc-ture, that exploits different definitionsof tax residence in the Irish and UStax codes. The Irish unit pays royal-ties to Google in the tax haven ofBermuda for using the company’sown intellectual property.

But Google’s arrangements are,above all, a symptom of flawsin the US tax system. ScottHodge, president of the Tax

Foundation, a non-partisan researchgroup in Washington, says thesekinds of “tax planning gymnastics”are the “the response you wouldexpect when businesses are subject toan arcane, outmoded tax system”.

As well as having the highest taxrate in the industrialised world, theUS is increasingly unusual in taxingcompanies’ worldwide profits. To miti-gate these disadvantages for its com-panies competing abroad, it allowsthem to defer US taxes on foreignearnings until they are repatriated.

Since 1997, Washington has tiltedthe tax system further in the compa-nies’ favour by passing the “check-the-box” regulations that opened upnew opportunities to put income intax havens, without having to investin real operations there. Companieshad a new incentive to strip taxableprofits out of high-tax countriesthrough payments of interest or royal-ties, pushing down the average over-seas tax rates of US businesses.

In Europe, the problems are exacer-bated by the anti-discrimination rulesenshrined in the 1957 Treaty of Romewhich have hindered the policingof national tax boundaries. Existingsingle-market rules allow businessesto “structure arrangements with suchjurisdictions via the member statewith the weakest response . . . this

of differences between countries’ taxcodes – by recommending govern-ments refuse tax deductions onincome that will be untaxed inanother jurisdiction. Reforms of therules affecting ecommerce companiesare also under consideration.

Similar proposals are being pushedby the European Commission. Callingfor a “strong and cohesive EUstance”, Algirdas Semeta, the taxcommissioner, said: “In a single mar-ket, within a globalised economy,national mismatches and loopholesbecome the playthings of those thatseek to escape taxation.”

Some factors are already working ingovernments’ favour: demands fromthe public and investors for greatertransparency, a growing and renewedawareness of the risks of extreme taxplanning to companies’ reputationsand the recently acquired ability toprise open the details of companiesheld in tax havens.

A ttempts at reform will, how-ever, face powerful head-winds. The forces of taxcompetition – including the

temptation to grab the most mobileprofits, such as those arising fromintellectual property – remain signifi-cant. In spite of the soaring rhetoric,governments must proceed with somecaution, fearing any cooling of invest-ment because of a crackdown on taxavoidance.

“Member states are defensive,” saysa Brussels-based official contemplat-ing efforts to co-ordinate a toughercode. “Countries are using their taxsystem to compete.” In the UK, forexample, at the same time as spear-heading international efforts to collab-orate on reforms, George Osborne, thechancellor, is this year launching a“patent box” offering a cut-price taxrate for certain types of intellectualproperty and an offshore finance com-pany regime to enhance the UK’s abil-ity to attract headquarters.

Rooting out avoidance might, para-doxically, intensify competition on taxrates. James Hines of the Universityof Michigan says tax havens “play theimportant role of pressure valves”,allowing big countries to imposehigher taxes on domestic businesseswithout deterring international inves-tors or triggering “beggar thy neigh-bour” tax competition.

Rates in industrialised countrieshave already been driven down fromalmost 50 per cent to less than 30 percent since the 1980s in a trend thatshows no sign of ending. Pressure islikely to intensify if the US joins thefray. The International MonetaryFund reports: “Any sizeable US corpo-rate income tax reform can thereforebe expected to elicit a tax competitionreaction by other countries.”

But as cash-strapped governmentsaround the world attempt to repairtheir deficits, they will battle todefend corporate tax revenues that –while failing to keep up with thegrowth of companies’ profitability –have held broadly steady at 8-10 percent of the total for the past 50 years.

One likely alternative would be afar greater reliance on consumptiontaxes, which would only add toincreasingly unequal income distribu-tion.

Given this need to preserve theintegrity of the tax system, businesseswould be well advised to brace forhigher tax bills.

“Governments have made the busi-ness tax system more friendly sincethe mid 1980s,” says Mr Owens. “Nowit is payback time”.

Reading the barometer: governments are responding to a changing political climate and are looking to stop companies logging their profits in offshore tax havens Alamy

ANALYSIS

does not only erode member states’tax bases but also endangers fair com-petitive conditions for business”,according to a new report on aggres-sive tax planning by the EuropeanCommission.

Emerging economies, particularlythe powerhouses of Brazil, China andIndia, are also feeling the pinch. Theexisting rules on international taxa-tion “only take care of the interest ofdeveloped countries”, the Indian gov-ernment told the UN in March 2012, asign of frustration over multination-als’ ability to siphon off profitsthrough royalties and managementfees and deposit them in tax-friendlierlocales. “The Brics are saying: you areraiding our markets,” says one multi-national executive.

Beijing is increasingly resistingefforts to cast its companies as low-margin “contract” manufacturers,arguing that its own technical exper-tise, infrastructure and huge popula-tion mean substantial value is createdin China and should be taxable there.Brazil has rejected conventionalapproaches to determine multination-als’ tax bills in favour of a simpler,more rigid approach that assumesfixed industry-wide profit margins.

Facing competing demands, thefragile consensus over the interna-tional allocation of multinationals’profits risks a breakdown. Highlight-ing the dangers of a failure by govern-ments to collaborate on reforms, theOECD warns: “The consequencescould be damaging in terms ofincreased possibilities for mismatches,additional disputes, increased uncer-tainty for business, a battle to be thefirst to grab taxable income throughpurported anti-avoidance measures, ora race to the bottom with respect tocorporate income taxes.”

There is “no magic recipe” toaddress profit shifting, the OECDwarns. But it is increasingly confidentabout the technical changes thatwould make the system more robust.

The new guidelines on “intangible”assets it is pushing through wouldstop companies shifting profits toshell companies in tax havens,although they would not stop thetransfer of intellectual property andother intangibles to a low-tax countryif companies had genuine businessoperations there.

It is also likely to propose a crack-down on arbitrage – the exploitation

Speed read●Report due The OECD will release aninterim report on tax at next month’sG20 meeting, as governments andbusinesses debate the depth of reforms

●Blame game Multinationals are stungby accusations of tax avoidance andargue governments created taxstructures to attract investment

●Race to the bottom Tacklingavoidance could paradoxically triggergreater competition among countriesseeking to offer more alluring tax rates

Tax formulas

After 80 years, the unitary dream lives onIs the system for taxing multinationalsso broken it cannot be repaired? Amidgrowing anger over aggressive taxavoidance, governments areconsidering whether it is time for afundamental rethink of the rules.

It has become increasinglymeaningless to talk about where manybig companies earn their profits.Companies can game the system bymoving intangibles – the intellectualproperty, brands and knowhow thatmake up much of their value – to low­tax countries. The current rulespolicing the system are often hard toenforce.

Some academics and campaignersbelieve the solution to income shiftinglies in a “unitary” approach – in whichtaxable profits are carved up,according to a formula based on sales,payroll and property. Intercompany

transactions would play no role individing income between countries.

This system was considered andrejected by the League of Nations in1933. In spite of some advantages –notably its simplicity – it was notaccepted because of the difficulties ofreaching a global agreement at a timeof “increasing economic, national andpolitical conflict”.

Eighty years on, the difficulty inreaching agreement on the formula tocalculate each country’s entitlement isstill the main obstacle to a unitaryapproach. David Rosenbloom, directorof the International Tax Program atNew York University School of Law,describes the existing transfer pricingsystem as a “shambles” but warns thatthe unitary approach is likely to lead toa proliferation of formulas. He says itillustrates the dictum “there is always a

well­known solution to every humanproblem – neat, plausible, and wrong”.

Critics say a move to a unitaryapproach would tend to suck revenuesinto countries with expensive realestate and high salaries, causedamaging uncertainty, offer newopportunities for gaming the systemand intensify conflict. In the 1980s,California’s attempt to tax companieson a fraction of their worldwideincome provoked outrage frommultinationals, precipitating a threat byBritain to suspend its US tax treaty.

Even so, the concept has somepowerful supporters, notably inBrussels, which is trying to use it asthe basis of a pan­European corporatetax system. As governmentscontemplate the crisis of confidence inthe international tax system, they mayconclude: if not now, when?

On the webTax To read more news, comment andanalysis on tax, go towww.ft.com/tax

‘Governments werecomplicit in theaggressive tax planningof the last 20 years.This mindset ischanging’

Corporate tax rates and revenues

Source: OECD

* Tax revenues refers to 2010

0 10 20 30

Tax rates,2012 (%)

Tax revenues,2011 (% oftotal taxation)

Corporate income tax rates

** Arithmetic average

%

10

20

30

40

50

1981 85 90 95 2000 05 10 12

UK

Ireland

US

OECDaverage**

Switzerland

Ireland*

Canada

Germany

UK

Italy

Japan*

Spain

France

US

JANUARY 14 2013 Section:Features Time: 13/1/2013 - 15:42 User: hayesj Page Name: BIGPAGE, Part,Page,Edition: ASI, 5, 1

6 ★ FINANCIAL TIMES MONDAY JANUARY 14 2013

“Without fear and without favour”

Monday January 14 2013

● To contribute please email: letters.editor@ft.com or fax: +44 (0) 20 7873 5938 Include daytime telephone number and full address ● For corrections email: corrections@ft.com

LETTERS

Rebalancing US­China trade will take a lot of ‘insourcing’From Mr Ernest Preeg.

Sir, Sebastian Mallaby (“Americanindustry is on the move”, Comment,January 9) presents a detailed,highly optimistic assessment of acompetitiveness renaissance for USmanufacturing. The bottom line forinternational competitiveness,however, is the trade balance, and hemakes no reference to the surgingUS trade deficit over the past threeyears that shows no sign of decline.

The US trade deficit inmanufactures increased from $326bnin 2009 to a projected $500bn in 2012.In parallel, the Chinese surplusincreased from $422bn in 2009 to a

projected $750bn in 2012. The $172bnthree-year increase in the US deficitequates to a loss of about onemillion jobs, or 10 per cent of thesectoral labour force. The $500bn2012 deficit amounts to almost 50 percent of domestic production.

The US bilateral deficit withChina, moreover, boggles the mind.US manufactured imports fromChina in the third quarter of 2012were more than six times larger thanUS exports to China, with US exportsdown slightly, compared with 2011,while imports were up by 5 per cent.It will take a lot of “insourcing” torestore some semblance of balance to

this strategic bilateral traderelationship.

This year will be important fortesting Mr Mallaby’s optimism thatthe soaring US deficit inmanufactures will shift intodecline. The answer will be providedin my quarterly reports on US andChinese trade in manufactures,available on the MAPI website forinterested observers, including MrMallaby.Ernest Preeg,Senior Advisor for InternationalTrade and Finance,Manufacturers Alliance/MAPIArlington, VA, US

Quitting EU would end UK­US special relationshipFrom Mr Anders Åslund.

Sir, I applaud your continued pro-European stand (“Lost illusions onEurope”, editorial, January 10).Relations between the EU and theUK would render both dysfunctionalfor years if Britain left the EU.

Philip Gordon, US assistantsecretary of state, has rightly spokenup against the UK leaving the EU.Rendering itself insignificant, the UKwould eliminate any remainingspecial relationship with the USthrough its departure.

The big western project is atransatlantic free trade area, but itwould be stalled if the UK left theEU. The British military is renownedfor its high quality, but because ofnecessary budget cuts it is too smallto render the UK relevant.

Never has the EU been as liberalas today. The EU is finely balancedbetween the liberal north and thestatist south. The UK can tip thebalance in favour of the liberalnorth, but only if it engages more.

Switzerland and Norway have to

pay their bills to the EU, but theyhave no say. That is hardlyattractive to the UK.

The only sensible option for primeminister David Cameron is tosurprise all with a strongly pro-European speech, finally telling theBritish why Europe is the onlyviable future for a small countrysuch as the UK.Anders Åslund,Peterson Institute for InternationalEconomics,Washington, DC, US

Spanish austerityis proving harshat the local levelFrom Mr Michael Tracy.

Sir, Juan Rubio-Ramirez (“Spainstill needs to make tough decisionson debt”, January 9) makes a clearanalysis of Spain’s financialproblems. But his conclusion – “largereductions on current expendituresare going to be needed . . . ” – isvague and unhelpful. He has alreadystated, first, that further cuts topublic investment will be difficult;second, that the regions will see nochanges in their revenues(questionable); and, third, thatprotests will probably increase.

I would like to describe thesituation of a mountain village inAndalucia, typical of many.Remittances from younger familymembers working in the cities havedried up. So has the other mainsource of income, tourism: fewervisitors from both Spain and abroad,and those who come have lessmoney to spend. Villagers who rent

Fiscal cliff ’s morelike a black holeFrom Mr Dan Barrett.

Sir, Roger Altman may offer praisefor the fiscal cliff deal (“Partisan, yes– but Washington is fixing the debtcrisis”, January 8), but taxpayers areright to suspect the recently passedbill relies on gimmicks and ignoreseffective and available solutions. Inthe just-concluded 112th Congress,lawmakers had access to at least$921.65bn in annual spendingreductions, savings and terminationsthat could have not only eliminateddeficits but reduced the debt as well.

The National Taxpayers UnionFoundation found that the 154introduced pieces of non-overlappinglegislation would address the realproblem behind chronic budgetshortfalls: government spending.These bills ranged from entitlementreforms to more stringent spendinglimits, but they were cast asideduring the closed-door negotiations.

Americans need smaller taxburdens brought to them by morelimited governments of all levels. Anadditional decade of bloated budgetswill make the fiscal cliff look morelike a black hole.Dan Barrett,Research and Outreach Manager,National Taxpayers UnionFoundation,Alexandria, VA, US

America should sort out its own mess before giving adviceFrom Mr Michael Nevin.

Sir, According to “US warnsBritain against leaving EU” (January10), Philip Gordon, US assistantsecretary for European affairs, haswarned Britain against renegotiatingthe terms of its EU membership witha possible view to playing a lesserrole in Brussels.

Greatly though I admire the can-dopioneering spirit of our Americancousins, am I the only British citizento feel that the American federalgovernment might spend a littlemore time sorting out its ownappalling financial mess – caused inno small measure by reckless foreign

adventures from Vietnam onwards –and a little less time mucking aboutin the sovereign affairs of othernations?Michael Nevin,Edinburgh, UK

Clear signs ofvitality at WTOFrom Prof Rob Howse.

Sir, Contrary to the assertion ofJean-Pierre Lehmann (Letters,January 10), the World TradeOrganisation is not “moribund”. Oneof the clearest signs of its vitality isthat, increasingly, countries areturning to the dispute process of theWTO to deal with major tradeconflicts in highly sensitive areas,such as green energy and exportrestrictions on raw materials, toname just two.

The accessions of China andRussia to the WTO have given itincreasing relevance as a forum foraddressing the most important tradeproblems of today.

During the financial and economiccrisis of 2007-10, the WTO played animportant role in monitoring risks ofincreased protectionism and ensuringthat trade-restrictive responses toeconomic and social tensions werekept within bounds.

Dr Lehmann may be right that theDoha round of WTO negotiations isdead, but the agenda for Doha hasbeen limited largely to a set of issuesthat were defined more than adecade ago and are of waningrelevance in some cases.

Even where the topics are ofcurrent importance – such asliberalisation of environmental goodsand services – the method ofnegotiation has not yet beenrethought in light of the size anddiversity of today’s WTOmembership.

Although the failure of the Doharound may count as a negativeepisode in the history of themultilateral trading system, thesetback is modest, viewed againstthe numerous achievements of theWTO in maintaining an open, rules-based approach to international tradein a changing world and throughtimes of crisis and uncertainty.Rob Howse,Co-director, Institute ofInternational Law and Justice,New York University School of Law,New York, NY, US

MORE ON FT.COMLetters onlineFor correspondence on austerity in theUS and Europe and auditors go towww.ft.com/letters

Japan’s elusivequest for growthAbe’s stimulus is welcome – but is no game­changer

Shinzo Abe has great expectationsfor his stimulus package. Japan’snew prime minister thinks hisY10.3tn ($116bn) fiscal boost willprovide a “rocket-start” to theeconomy, leading to fast economicgrowth and rapid job creation. Sofar, investors appear to agree withhim: when the plan was unveiledlast Friday, the Nikkei index roseby 1.4 per cent.

Yet, such optimism is probablyexcessive. A Japanese governmentseeking to revive its ailing econ-omy via a combination of publicworks and subsidies is hardly bignews. There have been 14 stimu-lus packages since November 1999and none of them has put the econ-omy back on its feet. Nor was lastweek’s fiscal expansion too large.Mr Abe seems to be running tostand still, rather than sprintingfor growth.

That said, the government isright to open its purse. The publicsector is not excessively swollen:at about 40 per cent of nationalincome, spending by the publicsector in Japan is below the Euro-pean average. Borrowing costs arelow and, thanks to a domesticallyheld and largely captive bond mar-ket, unlikely to increase in thenear term. While the public deficitand debt should be cut, this shouldhappen when the economy returnsto sustained growth.

It also matters what Mr Abe haschosen to spend money on. AboutY3.8tn will be used to rebuild theTohoku region, devastated by the2011 tsunami. This is fair andshould deliver high rates of return.But the economy cannot rely onconstruction alone. The Y3.1tn ear-marked for industrial competitive-ness should be used for what itsays, and not to prop up slow-growing sectors.

Nor is fiscal stimulus enough.Japan also needs a more aggres-sive monetary policy. Lifting theinflation target for the Bank ofJapan to 2 per cent, as Mr Abewants to do, is sensible. But oncethe new target is in place, it can-not remain a pious aspiration. TheBoJ should take the bold stepsneeded to achieve it. These includemore creative forms of quantita-tive easing, for example buyingmore long-term domestic bonds.

But Mr Abe should be under noillusion: to secure long-termgrowth, Japan needs structuralreforms. Since the labour force isshrinking, more imaginative poli-cies on immigration and to keepmore women in the workforce areneeded. The service sector has tobe deregulated to increase its pro-ductivity. Last week’s fiscal stimu-lus, while welcome, was the easypart. It is now time for Mr Abe tobe more ambitious.

The shale windfallThe US can avoid the pitfalls of its oil and gas boom

For the US, the shale oil and gasboom is like a lottery win: excit-ing, but also unsettling.

Other countries are envious,while at home there is squabblingover how the bonanza should beused and anxiety over how long itwill last. In the excitement, self-destructive behaviour can seemdangerously appealing.

Those are not bad problems tohave; it is easier to manage anenergy surfeit than a shortage. Yetthe potential pitfalls are real.

When the Energy InformationAdministration predicted last weekthat US oil imports would fall in2014 to their lowest for more than25 years, it showed how far theshale revolution had come. Boldpredictions that the US will over-take Saudi Arabia to become theworld’s largest oil producer maynot be fulfilled, but what is alreadyhappening is remarkable enough.

Yet some of the challenges arealso already becoming clear. Forexample, there are calls for the USto squat on its resource wealth likea dragon on its hoard. A group ofmanufacturers last week launcheda campaign calling for limits onexports of gas, to conserve it as acheap input for US industry.

That plea should be resisted;markets, not the government, arebest placed to decide where US gasshould be used, at home or abroad.

A similarly isolationist mistakeis thinking reduced dependence onoil imports diminishes the US stra-tegic interest in the Middle East.

The oil market is global, and dis-ruption to supplies from the Gulfwould hit consumers in the US likeeverywhere else. Increased domes-tic production would cushion theblow, but if an oil shock pushedEurope and China into recession,the US would suffer too. Interestsbeyond oil, such as Iran’s nuclearprogramme, will anyway ensureUS involvement in the region forthe foreseeable future.

Nor can oil and gas productionbe an economic cure-all; it contrib-uted just 1.2 per cent of grossdomestic product in 2011. Shaleprovides a valuable boost, but doesnot end the need for macroeco-nomic and structural policy to fos-ter growth.

Finally, the shale boom threat-ens to move the US further awayfrom action to address the threatof climate change. The country’srecord temperatures last year werea reminder that the issue will haveto be faced eventually.

Recent research on the “resourcecurse” – the idea that abundantmineral wealth hurts economicdevelopment – suggests it is farfrom inevitable. By avoiding thepitfalls of its own resource boom,the US has a chance to prove it.

Passage to IndiaCameron has to promote more than trade

Britain’s introspection over its rolein Europe is absorbing immensepolitical energy. But by going toNew Delhi next month David Cam-eron is signalling that there is farmore to Britain’s political and eco-nomic interests than what goes onacross the Channel.

India and Britain share history,culture and language. Few bilat-eral relationships are as deep andfriendly as that which Londonenjoys with New Delhi. That thebond has been forged despite along history of colonial rule makesthis all the more remarkable. Thequestion for Mr Cameron, as heprepares for his passage to India,is how to build on this foundation.

India is forecast to be the world’sthird-largest economy by 2030.Despite the recent slowdown,growth is still outpacing the devel-oped world. New Delhi has becomea mandatory stop for world leadersseeking new markets for their ownstruggling exporters. That motivedrove Mr Cameron’s trip in 2010,the first major foreign outing ofhis premiership. To a certainextent he succeeded. Britain is ontrack to meet the goal of doublingbilateral trade by 2015.

But this time he should go wellbeyond economic diplomacy. Fail-ure to do so risks eroding Britain’sspecial relationship, and its influ-ence in Asia, as India grows more

confident in its economic mightand global influence. As one of itsclosest western allies, Britaincould draw India more deeply intodialogue with western powers onregional and trade issues.

Mr Cameron could also help topromote the rapid conclusion oftrade talks with the EU. On suchsensitive issues as Kashmir, heshould refrain from playing toaudiences back at home.

The prime minister should alsorectify the impression that India’sbrightest students are no longerwelcome in the UK after the gov-ernment’s crackdown on immigra-tion. Already, an increasinglyAmericanised youth does not feelthe same pull to Britain as didtheir parents. The measure hascreated unnecessary strains in anotherwise good relationship. Extraefforts should be made to attractthe best and brightest, which willreinforce the bonds for a new gen-eration.

India is much more than a usefulmarket for British goods. It is animportant partner on issues suchas regional security and globalgovernance, and a source of talentand investment. Failure toacknowledge this will drive a newgeneration of political leaders toseek more reciprocal partnershipselsewhere. And Britain’s voice inthe region could be diminished.

A history of hubris and f lawed hypotheses

T o what extent was the econom-ics profession to blame for thefinancial crisis? Many would

agree with Paul Volcker, former chair-man of the US Federal Reserve, whenhe pointed in The New York Reviewof Books in 2011 to “an unjustifiedfaith in rational expectations, marketefficiencies and the techniques ofmodern finance”.

Professor Gary Gorton, of the YaleSchool of Management, puts a moretechnical gloss on it. He highlightsthe way economists “see” reality bylooking through the lenses of modelsthat come to embody the ordinary andthe orthodox while failing to recog-nise structural changes in the finan-cial system. The paradigm is thenoverwhelmed by reality when a finan-cial crisis strikes.

That is undoubtedly true, as far asit goes, though there remains a bigbone to pick with the book’s sweepingstarting point. Gorton baldly assertsthat “prior to the financial crisis of2007-08, economists thought that no

such financial crisis would ever hap-pen again in the United States”. Inperpetuating the myth that no onesaw it coming, he traduces many inhis discipline, and scarcely mitigatesthe insult with the subsequent sugges-tion that “a small number of econo-mists gave vague warnings”. Therewas nothing vague about the warn-ings from William White and ClaudioBorio at the Bank for InternationalSettlements, to take one obviousexample. The point is that there wasnothing vague, either, about therebuffs they received from the headsof leading central banks who deter-minedly downplayed the problem offinancial instability.

There is, of course, substantial eco-nomic literature on financial fragility,not much discussed here, that seeksto explain credit bubbles in behav-ioural terms – exploring how, forexample, prudent creditors are drivenfrom the market as others disregardlow-probability hazards and fail tocharge appropriate risk premiums.The interesting question is whydiminishing attention was paid tothese disaster myopia hypotheses andwhy financial stability experts inmany central banks saw their statusheavily downgraded in recent years.

Part of the answer is hubris. Devel-oped world central bankers tended tobelieve that the “great moderation” –the period of uninterrupted growththat prevailed in the years before thecrisis – was a reflection of their ownsagacity in monetary management.

An approach to central banking thatfocused exclusively on monetary pol-icy and inflation targeting also had acertain elegance. It appeared to entailgreater accountability because per-formance could be measured overtime against a single benchmark.

Equally important, financial econo-mists who worried about the build-upof risk and debt in the system sufferedfrom the problem that it is impossibleto forecast precisely when any bubblewill burst. When no action is taken toprick an extended credit bubble, theircredibility is easily undermined byaccusing them of crying wolf.

The impact of these institutional

changes was exacerbated by a lack ofhistorical perspective. Here, Gortonhits an important bull’s eye, quotingapprovingly a paper by economic his-torian Deirdre McCloskey, who notedin 1995 that “40 years of investment inmathematising economics has made itless acceptable among economists toadmit to ignorance of mathematicsthan to admit ignorance of history”.

The book’s strength lies in its exam-

ination of financial crises over a longsweep of US history and its recogni-tion of banking systems’ constant vul-nerability. It has sensible things tosay about the political and practicaldynamics of crisis management andthe way changes in financial struc-ture, such as the recent developmentof the shadow banking system, wrong-foot regulators. In this the author wasno doubt helped by his experience asconsultant to AIG Financial Products,a subsidiary of the US insurer that in2008 was subject to one of the biggestbailouts of the credit crisis.

Yet one may question whether theright lessons of history are beinglearnt. Partly based on Canada’s expe-rience, Gorton argues that countrieswith more concentrated banking sys-tems are less likely to have crises.Well, maybe. But increased concentra-tion in the US financial system in thepast 20 years, with added impetus as aresult of the recent debacle, means afuture crisis will be that much moredevastating.

It is hard, though, to disagree withthe book’s conclusion that economistsmust either embrace reality throughhistory, attention to institutionalstructures and better measurement ofrisk and liquidity, or sink into irrele-vance. A measure of the challenge isthat more than five years since theoutbreak of the credit crunch, mostmainstream economic models stillhave no financial component.

The writer is an FT columnist

Book reviewA sweeping study ofeconomists’ repeatedfailure to predict crashespins the blame on blindfaith and faulty models,writes John Plender

MisunderstandingFinancial CrisesWhy We Don’t See Them ComingBy Gary GortonOxford University Press(£19.99, $18.50)

From Prof Simon Green.Sir, Your leader on Britain’s role

in Europe (“Lost illusions onEurope”, January 10) is right to pickout the positive contribution the UKcan make on issues such as thesingle market. However, itunderestimates the risk in evenraising the prospect of renegotiatingour terms of EU membership, nevermind holding an in-out referendum.

Britain’s partner countries, notably(but not only) Germany, have

reconciled themselves to the factthat membership of the euro is noton the agenda for the UK.

Yet the very act of suggesting thatthe UK would like to see elements ofthe acquis communautaire reversedwill serve only to alienate Britainfurther from our partners, for whompatience with Britain is alreadywearing thin.

This is a strategy that willultimately backfire.Simon Green,Co-Director, Aston University Centrefor Europe,Aston University,Birmingham, UK

From Mr Paul Samengo-Turner.Sir, You write a long editorial

advising David Cameron on the needfor Britain to remain at the heart ofEurope.

It could have been more succinctlyput as “please Mr Cameron showsome leadership”.Paul Samengo-Turner,Berlin, Germany

From Mr Mark Tinker.Sir, I notice your letter from

business leaders (January 9) advisingDavid Cameron that Britain needs tostay at the heart of the EU (also anews item: “Top executives warnCameron on EU”) had chief signatoryRoland Rudd correctly identified ashead of Business for New Europe, alobby group he set up to argue for

exactly what the letter outlines.What was not made clear, however,

was that of the 10 signatories, six,including Mr Rudd, are on theadvisory council of Business for NewEurope while others are clients ofthe man voted “the UK’s mostpowerful PR professional in 2012”.

Nothing wrong with this per se,and I make no judgment on itscontents, but this letter is clearlyfrom a professional lobby grouprather than a random collection of“top executives” and should arguablyhave been identified as such.Mark Tinker,London W8, UK

out accommodation are left withempty rooms for much of the year.Several shops and restaurants havehad to close down.

Building projects have stalled. Forpublic services, the village is verydependent on grants from theprovince; this too has been cut. Thenumber of public employees hasbeen reduced; the construction of a

swimming pool – which would havebrought in revenue – has beensuspended. There is no money forcultural projects.

This is what austerity means atthe local level. So what more is thegovernment supposed to do that willnot make matters worse?Michael Tracy,Bubion, Granada, Spain

Mountain villages such as Bubion and Montefrio (above) rely on tourism Alamy

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I doubt that EU membership couldultimately protect the UK from aninevitable eurozone power grab. Asingle market in a single-currencyregime is a very different beast thana single market in a customs union.In the first category the purpose isadjustment of wages and prices; inthe second it is free trade. Italyneeds a single European labourmarket. The UK does not.

What, then, would the UK leave

behind by leaving the EU?Membership confers a series offundamental freedoms – ofmovement of labour, goods andservices and capital. Member statesare part of a customs union and, ofcourse, an unfinished single-marketproject, one that has stalled longbefore it has been completed. Britainmay be able to maintain several of

Why too much legitimacy can harm global tradeArvind Subramanian

faces an existential threat withliberalisation increasingly takingplace outside the WTO, eitherthrough unilateral reform or viaincreasingly popular regional tradeagreements.

But these agreements did notjeopardise the WTO for theimportant reason that none of themwas between the large tradingnations themselves. Ominously, thatnow stands to change. The US hasthrown its weight behind the trans-Pacific Partnership which couldpotentially include Japan. It is alsoseriously contemplating atransatlantic agreement with Europe.

Soon, there will be a scrambleamong other large nations toconclude deals with each other.Multilateral trade as we have knownit will progressively become history.So too might the WTO’s importanceand relevance because it was theinstitution where the US, Europe,Japan and China liberalised tradeand settled disputes.

Leaving aside the experience ofEuropean integration, which had itsunique post-second world warimperatives, it is the US that willbear history’s burden for these newdevelopments. The US, which began

the process of undermining the non-discriminatory trading system bynegotiating regional agreements withIsrael and Canada in the 1980s, willhave effectively ensured itscompletion by embarking on thesenew agreements.

How can this be addressed? Theeffectiveness of the WTO as a forumfor fostering further liberalisationhas been undermined by at least twofactors. The first is the Doha Roundof multilateral trade negotiations.Launched in the aftermath of 9/11,the world has neither been able toconclude nor bury them successfully.

As a result, it has becomeimpossible to move to a morerelevant agenda that can expandmarket opportunities for the privatesector and deal with the currentconcerns of governments. Anexample is food, where a decade ago

subsidies and barriers to importswere the important issue. Today,high prices and barriers on exportsare more important.

Similarly, currency manipulation isnow a pressing issue – but is not onthe Doha agenda. Emerging powerssuch as China and India must bemore active in shaping this newagenda and constructive aboutliberalisation in the WTO or risktheir trading partners seekingalternatives to it.

But interring Doha will not beenough to revitalise the WTO’seffectiveness. Unlike the IMF, whichhas suffered from a democraticdeficit and legitimacy problem, theWTO has suffered from too muchdemocracy and associated blockingpowers. A few small countries caneffectively exercise their veto if, say,cotton subsidies – an issue oflegitimate concern to them but notnecessarily of systemic importance –are not addressed.

This veto must be taken away orfuture negotiations could be stymiedby any of the WTO’s 157 members.This outcome can be achieved byallowing the larger countries tonegotiate among themselves whileoffering assurances to the smaller

countries that they would receive thebenefits of such negotiations and bespared any burdens.

Unless this change occurs, theWTO cannot deliver on its keymandate of being a forum for furtherliberalisation. And if it cannot, itwill be reduced to a body that settlestrade disputes between countriesbased on rules that are increasinglyovertaken by those negotiated underregional agreements.

Recently the legitimacy of the IMFand World Bank was under questionbecause the procedure for selectingtheir leaders appeared rigged infavour of Europe and the US. It isperhaps ironic that, in the case ofthe other part of the Bretton Woodstroika – the WTO – the absence ofcandidates from the mosteconomically powerful countrieswould be seen as lamentable. But itis, as it signals that the world’slargest trading nations haverelinquished responsibility in makingit an effective and relevantmultilateral institution. That is asituation that threatens to makeeveryone a loser.

The writer is a fellow at the PetersonInstitute for International Economics

Multilateral trade as wehave known it willprogressively becomehistory – along with theWTO’s importance

The list of candidates to succeedPascal Lamy as director-general of the World Trade

Organisation has just been finalised.Astonishingly, not one of the nineaspirants is from the world’s four bigmajor trading entities – the US,Europe, Japan or China – whichtogether account for more than55 per cent of global merchandiseexports. That is both a metaphor forwhat ails the supervisory body forglobal trade and a signal of its bleakprospects.

Over time the WTO has become aninstitution where smaller and poorercountries have acquired a stake andvoice. This transformation may seema welcome sign of legitimacy. But ithas gone too far. For its futureeffectiveness, indeed survival, theWTO needs to be de-democratised,with the large countries reassertingthemselves. Otherwise, trade willbecome more fragmented andfriction-prone, undermining the verysystem from which the smallercountries stand to benefit andslowing global growth momentum.

The multilateral trading system

Edward Luce

Wolfgang Münchauconceivable scenario. There may bereasons to stay in the EU, butwhatever they are, they are notmacroeconomic.

If you go one level down – to thelevel of individual industries,including finance – the impact of EUmembership is more subtle. But hereit is important to take a realisticlook at how the EU itself willdevelop in the next 10 years, and notromanticise the liberal, free-trade EUof the past, when Mario Monti orLord Brittan were still Europeancommissioners.

Over the next 10 years, the EU willmostly deal with the institutionalconsequences of the eurozone crisis,deepen eurozone integration andchange European treaties to makethat possible.

In the agreement on bankingunion, the UK has secured aprotection from being outvoted onmatters relating to bank supervision.But the eurozone will find a way tousurp this and other single-marketpowers. A hint of that recently camefrom Christian Noyer, governor ofthe Bank of France, when he saidthe eurozone would not allow theCity of London to dominate euro-related securities trading forever.

these benefits: not the customsunion, but most of the rest.

The common foreign and securitypolicy has not lived up to theexaggerated expectations of the pastdecade. Even here, it may bepossible, and in everybody’s bestinterest, to maintain some form ofengagement and co-operation. But isit important enough to make acompelling case for continuedmembership?

What about the UK beneficiaries ofEU funds – universities, for example?As a net contributor to the EU’sbudget, the UK would be able tocompensate any institution, and stillhave some money left.

A genuine complication would be aprior decision by Scotland to leavethe UK in a referendum that willmost likely take place next year.Any hypothetical UK referendumwould happen afterwards. If Scotlandwere to vote for independence, thesituation would get messy. The legalservices of all the three main EUinstitutions believe that by formallyleaving an existing member state, aregion would also formally exit theEU. Like any European country,Scotland would have the right toreapply, but any one member state

could veto a Scottish application. Icannot currently see the requiredunanimity for admitting anindependent Scottish state, not whenother countries, such as Spain, arealso fighting regional nationalism.

The two straightforward solutionswould be: Scotland leaving the UK,and both the rump-UK and Scotlandalso leaving the EU. Or Scotlandstaying inside the UK, and the UKstaying inside the EU. But we couldend up with England inside andScotland outside, or vice versa. Inthe last two cases, England andScotland would have to re-erect acustoms border between them –which would be absurd.

The best reason to stay in the EUis not a pretence to be in the heartof Europe, but to keep things simple,and maybe to have the flexibility tochange one’s mind about the eurolater on – if the political or economicsituation were to change. But in thatcase, the UK could always bereadmitted, so even that is not acompelling argument.

My overall conclusion is that thediscussion about EU membership isabout barely visible shades of grey.

munchau@eurointelligence.com

It does not really matter if Britain leaves the EU

If you look from thevantage point of Berlinor Paris, the idea ofBritain at the heartof the EU is bizarre

Should the UK remain at theheart of Europe?

If you believe that this iswhere the UK is actually located,then the answer may well be yes.But then you would either look at itfrom a very long distance – the USstate department for example – orsuffer from perspective distortion.

Looking at this from inside the EU,the UK left the heart of Europe 20years ago when John Majornegotiated the opt-out from the euro.Tony Blair confirmed that positionwhen his government took the opt-out in the later 1990s. It iscompletely unsurprising that there isnow a debate inside the UK aboutmembership. People are askingthemselves a perfectly logicalquestion: since we are not in theeurozone, nor likely ever to becomea member, what is the point?

In macroeconomic terms, EUmembership is virtually irrelevantfor a member state that issimultaneously large and not in theeurozone. The EU budget is tiny, andfree trade and free capital movementwould continue under any

No peacocks,jerks orwhiners inObama 2.0

Obama might be ready to fall intothe embrace of foreign policy, atemptation to which most second-term presidents succumb. Even then,he will still have to face the threatof a government shutdown – theappropriations that keep it runningexpire on March 15. Only havingaverted that, will Mr Obama be ableto shake off the fears of calamitythat have dominated the airwavessince his re-election. The momentwill hardly be ideal to embark ondomestic reform. But he will try.And in the sole but important caseof immigration, he will have areasonable shot at succeeding.

Beyond that, the contours of whatMr Obama can achieve are becomingvisible. Perhaps the most strikingfeature is the modesty of hiseconomic agenda. In an interviewwith NBC on the eve of last month’sfiscal cliff deadline, Mr Obama setout his five main second-termpriorities. Two were about theeconomy. The first – to protect themiddle class from any tax increases– he arguably achieved in theJanuary 2 “mini-deal” that avertedthe last cliff. Only the wealthiest 2per cent got a tax increase.

His second – “stabilise theeconomy and make sure it isgrowing” – was tellingly dutiful.Much of it, such as greater fundingfor infrastructure, education andtraining, Mr Obama is likely to pitchto Congress next month for the thirdstraight year. He will doubtless stillbe imploring it to pass the sameworthwhile measures in 2014. Thesame fate would await any proposalto address climate change or banassault weapons – his two otherpriorities (immigration reform beingthe fifth).

Mr Obama has implicitlyacknowledged these realities in hisappointments. Critics of Jack Lew’snomination for Treasury secretary

may struggle to suppress their innerpeacocks. But in contrast to theeconomic team, both men are strongenough to challenge settled wisdom.

Mr Kerry is likely to have far moreroom for diplomatic manoeuvre thanhis predecessor Hillary Clinton,whose tireless travelling masked anabsence of big initiatives. And MrHagel’s enthusiasm for shrinkingwhat he calls a “bloated” Pentagoncontrasts sharply to the outgoingLeon Panetta, who warned darkly ofthe consequences of further spendingcuts. Both nominees are strongbelievers in activist diplomacy. Youmight call them aggressive doves.

To be sure, John Brennan, MrObama’s nominee to head the CIA,comes from the White House innersanctum. So does Denis McDonough,the deputy national security adviserand the likely next chief of staff,which is arguably the second mostpowerful job in Washington. But themost relevant thing about MrMcDonough is that he is a pureforeign policy specialist – he wouldcome with less domestic experiencethan any previous White Housedirector. His elevation would also tellus something about what to expectfrom an Obama second term.

edward.luce@ft.com

say the president is promoting fartoo many people from his innercircle. That may be fair. The second-term team looks more like a band ofbrothers than a team of rivals, asone commentator put it. But MrObama has selected Mr Lew to fitthe circumstances. While unlikely topush the boundaries of economicorthodoxy, his grasp of theWashington budget process will beinvaluable in the coming games offiscal chicken.

As a bonus, the next Treasurychief possesses the same unflappabletemperament as the outgoing TimGeithner, the figure on whom thepresident has most relied. Last weekMr Obama joked that his preferencein appointments was for “nopeacocks, no jerks, no whiners”. Towhich he might have added, “andnot too many economists”. On thedomestic front, the administrationwill be chiefly technocratic.

Foreign policy did not featureamong Mr Obama’s five priorities.But his appointments here send astrikingly different message.Although both are trusted formercolleagues, neither John Kerry, thenominee for secretary of state, norMr Hagel are from the president’sinner circle. Nor are theytechnocrats. As former senators, both

Perhaps themoststrikingfeatureis themodestyof hiseconomicagenda

In his inauguration address nextMonday, Barack Obama will offer hispoetic vision of a second term. Twoweeks later he will convert it intoprose for his annual state of theunion speech. A few days later hewill publish his yearly budgetproposal. By mid-February anyonepaying attention will be qualified totake a SAT exam on the US leader’ssecond-term agenda. Yet he is likelyto stay silent on his most importantgoal: regaining Democratic control ofthe House of Representatives in 2014.Without that, most of Mr Obama’sgoals are unlikely to be met.

Second terms usually provedisappointing. Bill Clinton’s wasmarred by his impeachment over theLewinsky scandal. George W. Bushnever recovered from hurricaneKatrina. Even in calmer times, apresident’s capital runs out prettyfast. Before it has started, MrObama’s second term is alreadyhostage to the expiry of the USsovereign debt ceiling, which willcoincide with the next fiscal cliff inthe second half of February. Thiscountdown will probably run inparallel to the Senate confirmationhearings for Chuck Hagel, thepresident’s pick for defencesecretary, which look destined toturn nasty. Meanwhile, almost anyserious White House proposal to curbgun ownership is likely to be greetedby a hail of congressional bullets.

By March 1 – the deadline for thefiscal sequester that would triggerdeep, automatic spending cuts – Mr

COMMENTON FT.COMDanny Krugerexamines theprospects for theUK government’sconservative­modernist reformagendawww.ft.com/comment

Matt Kenyon

COMMENT

Business leaders are starting tomake their voices heard aboutBritain’s role in the EU, and

about time too.As the prime minister prepares for

this month’s critically importantspeech on the subject, there isgrowing pressure on him to promisea referendum after the 2015 electionof a kind that could lead to Britain’sexit. Such a commitment would yieldtactical benefits at home. It wouldtake the wind out of the sails of theUK Independence party, seen as agrowing threat in the Conservativeparty’s heartland. It would help tochange the mood of at least sometroublesome backbenchers. And itwould appease the Europhobe media,which should be natural Tory alliesbut which have become increasinglyoffensive about his leadership.

These gains would come at a cost,however. The government rightlyinsists that all policy initiativesshould be tested against theirpotential impact on growth. And it ishard to see how more than threeyears of uncertainty about Britain’sposition in its biggest marketplacewould do anything but damp theoverall pace of economic activity.

Private sector investment has acentral part to play in buildingrecovery over the medium term. Inits latest forecast, the independentOffice for Budget Responsibility saysthat worries about the outlook forglobal and domestic demand have ledcompanies to postpone spendingdecisions. But it is forecastingbrisker expansion by 2015 and 2016,with business investment rising atan annual rate of more than 10 percent, more than offsetting the impacton growth of the continuing squeezeon government consumption.

Is this likely to happen at a timewhen the UK might be locked intoits most important, hotly contested

political battle in decades?Japanese and South Korean

investors are already asking aboutthe implications of a possible Britishexit from Europe. And foreign directinvestment would not be the onlygrowth engine that could stall. UKcompanies, too, might well decide tohold back until Britain’s place in theEuropean economy became clearer.Safer, perhaps, to continue pushingnew investment into Asia’s emergingeconomies than to take the risk thatthe UK’s position could be changedby a referendum decision.

Other questions could also start totrouble potential investors. Forexample, science budgets are underincreasing pressure. One result isthat Britain’s top universities, whichare a powerful magnet for inwardinvestment, have becomeincreasingly dependent on Europeanresearch funding – one estimatesuggests that 10-20 per cent of theirresearch income now comes fromthis source. What would happen tothe UK’s science base if this moneywere to disappear, and would thetaxpayer be willing to plug the gap?

Of course, the UK remains anattractive destination for inwardinvestors. One of the best pieces ofnews in recent weeks was Nissan’sdecision to manufacture its newpremium vehicle at the Sunderlandplant in the northeast of England forexport worldwide, bringing with itsizeable investment and hundreds ofjobs.

This is one of the most productiveassembly plants in the world, and itmakes sense for Nissan to build onits success. But as Honda made clearthis weekend, Japanese carmakerswould be alarmed by the prospect ofsubstantial changes in therelationship between Britain and theEU. And they are not alone.

Most corporate leaders want tosteer well clear of politics. But theprime minister is having to take apath towards what will be one of hismost critical decisions at a timewhen one side of the argument hasbeen dominating the debate.

If businesses feel it is better tokeep their political options open at atime of such uncertainty for the UKand for Europe, and if they believe aprolonged period of wrangling ismore likely to damage than enhancejob creation and economic recovery,they should say so – preferably inpublic.

The most powerful voices wouldcome from countries that have a bigstake in the UK economy, andtherefore a real interest in itsperformance. This means, above all,US businesses, which remain by farthe largest source of foreigninvestment. It is time they followedthe lead of their country’s diplomatsand put their heads above theparapet.

The writer is a senior independentadviser at Deutsche Bank, chancellorof Warwick University and a formerFT editor

Richard Lambert

Businessmust help fixCameron’sEuropeanproblem

If investors think politicaluncertainty is more likelyto damage than enhanceeconomic growth, theyshould say so – in public

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8 ★ FINANCIAL TIMES MONDAY JANUARY 14 2013

Entrepreneurslearn to worktogether on roadto MendeleyMaking full use ofbusiness school networkshas been crucial increating one of the largestresearch databases in theworld, writes Ian Wylie

Michael Palin, Russian oli-garchs, backpackers inthe US . . . just some of thepeople Victor Henning

and Jan Reichelt have met on theroad to creating Mendeley.

But it has been the strength of theirbusiness school connections that hasbeen critical to signing up 2m userswho have uploaded more than 310mdocuments to the Mendeley site, mak-ing it one of the largest research data-bases in the world.

The co-founders met on the MBAprogramme at the WHU-Otto Beis-heim School of Management in Kob-lenz, becoming friends as they workedon projects and term papers together,before starting a local chapter of theGerman Entrepreneurship Club.

“At business school, people tend tohave relatively similar backgroundsand ambitions to enter consulting orbanking,” says Dr Reichelt. “But ourentrepreneurship group had a differ-ent way of thinking. Victor and Ishared the same attitudes about whatwe expected in terms of friendshipand how we might leverage our com-plementary skills.”

After graduating in 2004, the pairwent their separate ways, but bothdecided to pursue PhDs: Dr Reicheltat the University of Cologne toresearch information managementand Dr Henning at Bauhaus-Univer-sity Weimar to research media eco-nomics, consumer behaviour andsocial psychology.

“We remained friends and kept talk-

ing about possible projects we shouldbe doing, even though we werefocused on our PhDs and the careersthat might come out of that.” says DrHenning.

Dr Reichelt was consulting for soft-ware giant SAP, which offered toemploy him, while Dr Henning wasbusy publishing research papers andconsidering a career as an academic.Yet neither could shake the entrepre-neurial bug. Dr Reichelt co-founded asmall travel agency offering luxurybespoke travel and Dr Henningopened a café-bar opposite WHU whilewriting his masters thesis.

But as they continued their PhDs,they realised they were strugglingwith the same problem: managinginformation efficiently.

“We were finding it difficult to keeptrack of the hundreds of PDF docu-ments that we had to manage,” saysDr Henning. “We were doing collabo-rative work too with researchers inGermany and the UK and found thatdiscussions and emails often got lostas documents were emailed back andforth. That’s what brought us to theidea of Mendeley.”

The first question was whether theycould extract meaningful informationfrom documents. Dr Reichelt, whowas supervising masters thesis stu-dents at Cologne, commissioned twostudents who proved it was possibleto turn a PDF into plain text, then usealgorithms to extract informationfrom it. “It reinforced our belief thatit would work and convinced us wecould build a prototype without fund-ing,” says Dr Henning.

The reason for their optimism – andtheir decision to jump full-time intodeveloping Mendeley – was a hunchthat researchers would find the serv-ice valuable once their individualresearch libraries were crowdsourcedinto one large searchable database.

While the pair admit to being“nerdy”, neither is a programmer.Luckily, their friend Paul Föckler is.Mr Föckler has a masters in computer

for research. In the same way thatLast.fm extracted data from musicfiles, analysed it and then made rec-ommendations to users, Dr Reicheltand Dr Henning said they could dothe same for research.

Mr Glänzer became the firstangel to invest in 2007, fol-lowed by Eileen Burbidge,Skype’s former head of

product development, and Russian oilbillionaire Len Blavatnik.

In 2008 the Mendeley trio moved toLondon. The city had “the biggestconcentration of venture capital andacademic publishers in Europe andone of the biggest research hubs inthe world,” adds Dr Henning. Theirfirst base was Michael Palin’s produc-tion office in Covent Garden, whereMr Föckler had been working on theformer Monty Python member’s travelwebsite. “It was brilliant, full of Span-ish Inquisition dolls belonging toPalin, who would occasionally pop into say hello,” Dr Henning recalls.

Mendeley is now located in Lon-

don’s Clerkenwell and has a team of45, plus a small office in New Yorkand an agent in the Bay area.

“At the start, when we were settlingon a common direction andvision . . . we had a lot of shoutingmatches, primarily because we werein three different locations,” Dr Hen-ning says. “We had a weekly Skypemeeting to catch up, share progressand have heated discussion on nextsteps. Once we moved to London webecame more harmonious.”

“We’re all . . . entrepreneurs whowant to make decisions – clashes wereunavoidable,” says Mr Föckler. “Nowwe have data to support our ideas.”

“Many companies that fail do sobecause founders fall out,” says DrReichelt. “But we have an agreementthat we always sort things out our-selves first before moving forward.”

Dr Henning says the challenge forthe next three years is to makemoney. And his advice to other entre-preneurs? “Try working with eachother beforehand, to ensure you canwork through conflict.”

science from Bauhaus, although hemet Dr Henning in 2005, while back-packing across the US. He also has anentrepreneurial streak and had cre-ated a museum app for Nokia hand-sets but had moved to London to workon freelance projects. He and Dr Hen-ning kept in touch.

“I remember sitting on the stairwayoutside the office where I was work-ing while Victor told me about thepotential of this ‘iTunes of researcharticles’ and I realised that he and Janwould do everything to make it a suc-cess,” says Mr Föckler.

The three founders split the equitythree ways and each invested a simi-lar sum in 2006 to pay for a Belaru-sian outsourcing company to build asecond prototype that would helptheir pitch for seed funding.

Dr Reichelt and Dr Henning hadmet Stefan Glänzer, chairman of themusic streaming website Last.fm anda founder of online marketplaceRicardo, at WHU when he gave a lec-ture on entrepreneurship. Theypitched Mendeley to him as a Last.fm

Partners inresearch: VictorHenning (left) andJan Reichelt, co­founders ofMendeley

Charlie Bibby

What is Mendeley?

Mendeley is an academic databaseand collaboration platform that helpsresearchers organise, share anddiscover documents. But what beganas a desktop program for organisingpapers from research journals isbecoming a platform for connectinglike­minded researchers and helpingacademics discover new papers.

“We wanted others to be able totap into this database so that wecan tell them which other researchpapers they should be using,” saysVictor Henning, a co­founder. Makingpublic the Mendeley API, the codethat allows other software to workon the platform, has encouragedthird­party developers to create morethan260 bolt­on applications that extendits functionality.

An institutional edition providesuniversity librarians with informationon which articles their researchershave published and the reach of thatresearch. A dashboard also displayswhat content is being read andmatches the results with the licensedcontent provided by the library.

Other research documentmanagement systems, includingAltmetric, Academica.edu and Zotero,pull relevant data from documents tohelp users keep track of theircollection. But Mendeley aims to bea social­networking platform thatshares research data and extractstrends on what academics aroundthe world are searching and reading.

Its largest user base is at presentfrom the biological sciences andmedicine, followed by physicalsciences and maths.

MBA partners

BUSINESS EDUCATION

TENQUESTIONSLakshmi Bhojraj ofJohnson GraduateSchool ofManagementwww.ft.com/b­school/women

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Business Education 2013

FT Global MBA Rankings

Next issue: 28 January

JANUARY 14 2013 Section:Features Time: 13/1/2013 - 13:46 User: hayesj Page Name: BusEd1 USA, Part,Page,Edition: ASI, 8, 1

FINANCIAL TIMES MONDAY JANUARY 14 2013 ★ † 9

FTLexiconWhat orwho isthe Londonwhale?For adefinitionand to seethousands ofwords andphrasesselected byFinancial Timeseditors, visit:lexicon.ft.com

By Roly Keating

Researchers know that nothingbeats handling primary materials.But today’s doctoral students workin a research environment that isincreasingly dominated by onlinejournal articles and other publishedresearch materials, rather than pri-mary resources such as newspa-pers, archives and manuscripts.

The consequences are serious.Primary resources offer a range ofperspectives, broadening the reachof research and creating ideas.Relying entirely on publishedsources and overlooking primarymaterials closes these avenues ofexploration. If this trend continues,researchers will be less able to ana-lyse and interpret a wide range ofmaterial and have a narrowerknowledge of their discipline.

The research behaviour of 17,000doctoral students was analysed bythe British Library and Jisc, theindependent educational charity.Their study, Researchers of Tomor-row, found an over-reliance onsearch engines, with 30 per cent ofresearchers across all disciplinesusing Google as their first port ofcall.

Students need to be trained howto find resources and understandtheir importance. Otherwise thereis a danger that research willbecome homogenised, less innova-tive and conservative.

The writer is chief executive of theBritish Library. Join the debateonline at www.ft.com/soapbox

The business of education

The dangersof e­research

Soapbox

Global MBA 2013Almost one in five graduates from the FT GlobalMBA 2013 top 100 programmes have set uptheir own company, either during their MBAprogramme or since graduation.

Of these, 42 per cent are chief executives orboard members and half work in companieswith 50 employees or fewer.

The Global MBA ranking 2013 will bepublished on January 28.

MBA blogIt is easy to forget that whilestudying life goes on; oneblogger is shortly expectinghis first child.

In preparation he has takenextra classes this term sothat he can take over fromhis wife when she returns towork. His professors at theFoster School of Business,University of Washington willrecord lectures and class­mates will help withassignments.www.ft.com/mba­blog

18%Case competitionThe first business schoolcase competition to focuson family­run businesseshas been launched by the

A reliable way to spoil amarket-beating investmentstrategy is to publish anacademic paper about it,

according to research by DavidMcLean, a visiting professor at MITSloan School of Management.

Prof McLean and Jeffrey Pontiff ofBoston College’s Carroll School exam-ined 82 strategies that were shown topredict stock returns in 68 papers pub-lished in finance, accounting and eco-nomics journals*. They found thatonce these papers were published, theaverage strategy’s return fell by morethan 30 per cent. This may be due tothese papers attracting the notice ofsophisticated quantitative investorswho trade on a given strategy, whichcorrects the market mispricing thatmade it profitable in the first place.Prof McLean discusses his research:

What sparked your interest?We had wondered if the investment

strategies outlined in academic papersworked outside their original samples.It was an interesting question, but itwas a daunting prospect to replicateso many strategies. During the sum-mer of 2011 we did [the empiricalwork for] about a dozen of the strate-gies. We saw that the predictabilitywas a lot weaker from the originalsample to post-publication.

And what did you discover?We found that the average strategy’sreturn declines by 35 per cent after anacademic paper has been published.In other words, if you are an investortrading on a strategy outlined in anacademic paper that promises an addi-tional return of 5 per cent per year,you should expect to get only 3.75 percent in the years after that paper ispublished.

What explains this effect?When an academic publishes a paperabout a strategy, investors learn fromit and trade on that strategy. Thistrading impacts prices, bringing themmore in line with fundamental values.This process also makes the strategyless profitable. It seems the strategiesoutlined in these papers were right fortheir original sample, but once practi-

tioners learnt about them the predict-ability weakens.

Which investment strategies saw thegreatest post-publication decline?The returns of strategies that involvelarger, more liquid stocks declined bymore than 35 per cent. This is proba-bly because investors are more likelyto act on a published strategy if thecost of trading in the strategy is low.But when it’s more expensive to trade– smaller, more volatile stocks –investors are less apt to try a newstrategy. We found that these costlierstrategies keep on getting high, abnor-mal returns even after the paper [theyare outlined in] is published.

Are your finance colleagues dispir-ited by your findings?There’s nothing that makes the pro-fession look bad. It suggests that aca-demic research affects the real world.

Do they ever think, what’s the point?Academics are interested in testingmarket efficiency and predicting stockreturns is one way to do that. Thepoint of these papers is not to claim‘Hey, here’s this great way to make alot of money’. I think this researchshows that markets want to be effi-cient, but there are costs and risksassociated with getting there, so themarket doesn’t end up in a perfectlyefficient place.

You say there’s a silver lining to yourresearch. Explain.Our interpretation of these results isthat academic research makes finan-cial markets work better. Once thepapers were published, the strategiesdid not work as well, suggestingthat the market mispricing has beenat least partially corrected. As aresult, stock prices are more accurateestimates of what companies areworth. You prefer to live in a worldwhere prices mean something.

*Does Academic Research DestroyStock Return Predictability? Social Sci-ence Research Network.

Come up with amarket­beatingstrategy? Keepit to yourselfPublishing a paper on alucrative investment tacticis likely to render thestrategy less profitable,writes Rebecca Knight

University of VermontSchool of BusinessAdministration. Sixteenteams are taking partin the global contest.The Family FirmInstitute says familybusinesses create70­90 per cent ofglobal gross domesticproduct each year.

Market research: Jeffrey Pontiff (left) and David McLean Bryce Vickmark

BUSINESS EDUCATION

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10 ★ FINANCIAL TIMES MONDAY JANUARY 14 2013

Executives andconsultants failthe 10­year­old test

W hy do we need banks?It’s a good question;so good I wish I hadthought of it myself. It

comes from a sweet little girl withringlets on the ING CareersFacebook page and is the first in aseries to be put by schoolchildren tothe bank’s aspiring employees.

Not since Bob Diamond walkedthe plank has such a heartwarmingthing come out of the bankingsector. All the wannabe bankerswere last week busily writinganswers that mostly went somethinglike this: “We need banks to keepmoney safe and to lend it to peoplewho need it.” If these are thebankers of the future, bankingcrises will be a thing of the past.

However, I can think of two thingsthat are wrong with the Facebookcampaign – apart from the fact thatit is sick-makingly twee.

The first is how the bank presentsits new child-friendly approach. Intwo sentences it refers to suchdreary things as “key values”,“a sustainable future”, “talent” and“reaching out”. The average 10-year-old hasn’t heard of the first two,and though she has certainly heardof the last two, she rightly thinks“talent” is something that sings and

dances on primetime television andthat “reaching out” is somethingyou do when you help yourself toanother Jammie Dodger.

The other problem is that thequestions are aimed at the wrongpeople. They shouldn’t be put tounemployed graduates trying toingratiate themselves; they should beput to the bank’s bosses instead.

As the naked emperor found outlong ago, the child is the best andthe toughest inquisitor there is. Ifany chief executive is unable to saywhat he does in a way that abrightish 10-year-old can grasp, heeither hasn’t thought about itcarefully enough or he should stopdoing it at once.

When I joined the board of aninsurance company a few yearsago, I was asked by my youngerson what insurance was and whatexactly we did during boardmeetings. Answering these questionsin a way that he could follow wasquite tricky. Though I tried veryhard indeed, I’m not sure he wasentirely satisfied. In all, it was afar tougher test than answering themore elaborate questions put to mesubsequently by the FinancialServices Authority – most of whichcould be dealt with by learning the

corporate risk register by heart.If you apply the 10-year-old test to

business in general, it quicklybecomes clear which practices shouldbe kept and which eliminated. Whydo the bosses of big US companiesearn almost 400 times more than theaverage worker? Try answering thatin a way that a child would accept.It can’t be done.

Many of the things that most of usspend our days at work doing fail thetest, too. Sifting through the emailsthat have arrived in my inbox in thepast hour or so, I’ve found one from amanagement consultant telling methat “the next evolutionary change inbusiness requires a paradigm shift inthinking, involving a grassrootsrevamp”.

A 10-year-old could never see thesense in that, so it deserves to beeradicated. As, perhaps, does theentire management consultancyindustry. Just imagine the followingQ and A:10-year-old: Why do we needmanagement consultants?Consultant: To tell companies whatto do.10-year-old: Why can’t they workthat out for themselves?Consultant: Because we’re smarter.10-year-old: Who says?

Game, set and match to the 10-year-old.

The next email in my box is froman “HR professional” and is all about“optimising the flow of talent”. Myyoung inquisitor would surely not beimpressed. The email is for the chop,as is most of the HR profession.

Yet the sector that will fare worstunder the unforgiving eye of the10-year-old is investment banking.I only hope ING will be vetting thechildren’s future questions that flowinto its Facebook page so as to avoidsuch devastating enquiries as “Whydo we need investment bankers?” Or“Why are you so rich?” Or, worst ofall, “Why are you so rich when mydad says he owns your bank?”

Before I get too indignant overbankers, I should perhaps considermy own position vis a vis the10-year-old. A while ago I gave a talkto schoolchildren in which I toldthem what terrific fun it was being acolumnist. At the end of which, achild put up her hand and asked:“So why do you get paid?”

It is a great question. It is one thatthe unhappy newspaper industry iscurrently struggling to answer. Ihope it finds a good one quite soon.

lucy.kellaway@ft.com

As thenakedemperorfound outlong ago,the child isthe bestand thetoughestinquisitorthere is

Web archivistHelen Hockx­Yu, British Library

I don’t think many peopleare able to imagine whatexactly I do – it’s a hybridof tasks including technical,legal, managerial,communication andcuratorial activities. Thepurpose is to make surethat the British Library andmy team keep a record, asmuch as possible, ofthe web for thebenefit of futureresearchers. Ifwe don’t, whena website goesoffline itdisappears andyou can’t get itback. The site forAntony Gormley’sOne and Other project,about the fourth plinth inTrafalgar Square, wouldhave died if he hadn’tasked us to archive it.

We’ve been doing webarchiving for 10 years. Wehave collected, as much aspossible, a small snapshotof key websites from withinthe .uk domain and put

them online. So far we’vebeen collecting selectively infour broad areas: websitesof research interest orvalue; events of nationalimportance; reflectingdiversity of UK life; and webinnovation.

We have to ask people’spermission to archive their

websites but pendinglegislation should

mean we won’thave to askany more. Sowe’ll becollecting

much more –we are looking

at archiving 4­5mwebsites, doing at

least one crawl [browseand copy] of each, peryear.

Our vision is for theBritish Library to be theprovider of a way to “goback in time” – when a[UK] website is no longeron the live web our archivewill be the place to go.As told toNicholasSpencer

The job

Lucy Kellaway On work

The careerist

●Born: 1961, Stockholm●Education: Engineeringand business degree fromLinköping university●Career: Early rolesinclude group controllerat Saab Scania and chieffinance officer at AdamsonsTransport●1991 Joins Handelsbankenas the company’s financialcontroller●1996 Appointed

Handelsbanken branchmanager in Norrköping●1998 Becomes overallhead of Denmark●2002 HeadsHandelsbanken Marketsdivision●2006 Appointed chiefexecutive of Handelsbanken●Family Married with threechildren●Interests Outdooractivities and fishing

terms it, “more or less no work atall”. Handelsbanken executives, ledby him, visited the bankers in NewYork and asked to see the underlyingdocumentation of the mortgages. Thatwas not possible. So Mr Boman wentto the west coast and visited some ofthe houses used in the bonds. “Then itwas very clearly nothing for us,” hesays simply.

All this demands a certain stub-bornness. “Depending on the fact thatthe business cycle is so long, andmemory is not always so long, weknow that we have to prepare our-selves for bad times and when youstart doing that you do not alwayshave this huge support from the stockmarket,” he adds.

Despite this seemingly old-fashioned approach, Han-delsbanken has some mod-ern aspects. It is expanding

in the UK, for example, at a pace moresuited to a clothes retailer, opening abranch every second week. In fact, MrBoman says he is looking beyondbanking for inspiration in manyareas. Its expansion model is modelledin part on how retailers such as Ikeaand Hennes & Mauritz – often com-pared to Handelsbanken for theirlong-term focus – have grown so fast.

The bank’s latest venture was to setup its own video channel on its web-site, which has quickly become Swe-den’s leading online video news serv-ice. Mr Boman says no Swedish bankwebsite had videos, but when “weasked our customers what theythought was the way they wanted tohave information they said videoclips”.

This focus on customer experienceis what Mr Boman insists sets hisbank apart from its peers. “We really,really try to develop our businessmodel and so on. But at the end of theday, all this work boils down to whenthe customer meets the bank: on thephone, on the web, on the smart-phone, on the app or in the branch.

“And you must all the time be therein those places trying to understand‘is it good enough or not?’. And somewill maybe say that is some kind ofmicromanagement.”

But his answer to such critics isthat banking success is about thedetails of the interaction with custom-ers. “That’s what it’s all about.”

Once or twice a year, PärBoman dons a golden badgeemblazoned with “undereducation” and spends the

day serving customers at a branch ofHandelsbanken. The chief executiveof one of Sweden’s largest banks, andone of the most studied lenders in theworld, does it to gain insight intoexactly what his customers want. Forexample, while most Swedish bankshave stopped handling cash in most oftheir branches, Handelsbanken allowspeople to pay in and take out cash atall its branches despite the cost.

It is an approach that leads somecompetitors to dub Handelsbanken“the Taliban” for its fundamentalistapproach to banking, but the 51-year-old industrialist-turned-banker seemsto revel in the tag. “Of course, it couldhave been a little bit easier for theothers if we also were taking awaythe cash, but we didn’t . . . There youhave the very, very clear difference:the customers, they want it,” he saysin an interview in the bank’s head-quarters overlooking the Royal Palacein Stockholm.

Mr Boman delights in subtly rilinghis rivals with his seemingly simplis-tic approach: putting customers first;setting up branches that offer onlyloans and mortgages to local busi-nesses and people; paying no bonuses;and not using an annual budget inany part of the bank. The “Taliban”taunt came when Handelsbanken,alone among the big Swedish banks,refused state help during the financialcrisis – much to the chagrin of rivals.

Handelsbanken’s “back to the fut-ure” model – as Andrew Haldane,head of financial stability at the Bank

The CV

The back­to­the­future bankerPär BomanChief executive, Handelsbanken

The head of the laudedSwedish bank says itsidiosyncratic modelhas helped protect itduring financial crises,writes Richard Milne

How do you channel anoverenthusiasticworkmate’s energyconstructively?

What is wrong withenthusiasm?“You see people who putso much energy into newinitiatives that they don’thave the stamina to seethem through,” saysbusiness psychologist ZoeMayson. “They canvacillate betweenoptimism and pessimism,send out mixed messagesand be difficult to workwith.”

Enthusiasm is verycontextual, adds GrahamAbbey, director ofexecutive development atthe University of Bath. “Itcan mean doing lots ofthings that are wastefuland costly to other peoplein terms of time.”

In the worst cases,the overenthusiasticperson can makepointless work for you,and make you lookuncommitted and lazy.

How do I deal with it?Often, the problem is alack of focus.

“Energy has to bechannelled,” says MrAbbey. “Setting goals,defining responsibility andsome direct talking canhelp here.”

Ms Mayson suggeststhat if you are dealingwith people who switchfrom excitement todespondency, “explore thetriggers for their moodchanges and developstrategies to influencetheir activity in a positiveway”.

She adds that youshould help them to seethemselves as others do.“Ask them to takepsychometric assessmentsor get anonymousfeedback. That way youcan present them withevidence, rather than justyour opinion.”

Mr Abbey says: “Help

them focus theirenthusiasm – but youcan’t be too cynical. Itstill needs to be there.”

Executive coachGeraldine Gallacher evensuggests showing themthe consequences of ill-considered excitement. “Ifsomeone is constantlyenthusing about what youthink are hare-brainedschemes, a good tactic isto encourage them to takeone to the next stage.This tends to flush outimpractical ideas.”

Should my approach varydepending on who it is?“If it’s a subordinate,adopting a kind ofmentoring role can help,”says Mr Abbey. “Don’tquash the enthusiasm buthelp them recognise thatthere are consequences.”

With a boss, it’s muchtrickier. “It’s abouthelping them keep thingsfocused. If, every timeyou speak, they’re talkingabout the next big thing,you need to have a lot ofconversations aroundoutcomes and goals.”

It can also be difficultwith peers. “If they’regood at managing theirrelationship with theboss, they can look likethe blue-eyed boy or girland you can be cast asthe naysayer. Try tofoster an environmentwhere both criticalthinkers and enthusiastsare valued.”

What about long­term?“High enthusiasm canoften be a symptom ofsomething else,” says MrAbbey. “You might askyourself if it stems froma lack of confidence ora fear of failure or aninability to recognisetheir impact on others.”

Rhymer Rigby

The writer is the authorof ‘The Careerist: Over 100ways to get ahead at work’

‘Develop strategiesto inf luence theiractivity positively’Having an overenthusiastic colleague

of England, calls it – has attracted theattention of overseas regulators andinvestors because the bank has someof the best returns, but highest capitalratios, of any lender. “Their businessmodel is fascinating, Quaker even, inits orientation,” Mr Haldane said in aspeech last year.

Mr Boman embodies the Han-delsbanken view of the world, pepper-ing his conversation with commentsthat few if any other bankers wouldutter. He talks of having studied“5,000 years” of how credit risk is cal-culated to dismiss the way manybanks offered loans in recent years.His view of Handelsbanken’s role insociety is that it is only a “subcon-tractor, a supplier to the real econ-omy” and that banks should notaccept any state help since thisdiverts funds from the truly needy.

That perhaps betrays his back-ground in industry: after studyingengineering at university, he workedas a mechanic before getting manage-ment jobs at Saab Scania and Adam-sons Transport, and then joining Han-delsbanken at the age of 30.

One London-based banking analystsays: “I’m a big fan. One of the fewthings that charms an analyst like meis the Buffett-esque wisdom of MrBoman.”

That wisdom is a mixture of thetraditional and the modern. MrBoman, over a self-service fish lunchin the bank’s wood-panelled diningroom, has a keen sense of his com-pany’s history. “The challenge [ofbanking] is that the business cycle isquite long. The bank was establishedin 1871 . . . and the first financial crisiswe went into was 1876. It was a rail-

Monday interview Fundamentalist:the simplistic butsuccessfulapproach pursuedby Pär Bomanhas gainedHandelsbankena ‘Taliban’ tauntfrom rivals

Johan Jeppsson

way bond. And if you go through ourhistory, and we have very good docu-mentation of that in the basement, wehave all the minutes from all theboard meetings for more than 140years,” he says, giving the impressionhe has read most of them.

The main lesson for him from allthose papers is that every 15-20 yearsthere is a financial crisis. So MrBoman believes one of his importanttasks is to remind the bank’s new,young managers: “Have it in mindthat things must be robust, so robustthat you also could continue to runthe business not only in good times –because running a bank in good timesis quite easy – but in bad times. Thenyou have to use buffers and be pre-pared.”

Senior managers comb the wholeloan portfolio four times a year andlook at all documentation annuallyfor loans greater than SKr1m($153,000). Any credit loss of morethan SKr5m is analysed by seniormanagement.

Huge responsibility is devolved tobranch managers: they have no setbudget and have to work through anybad loans themselves. Cost control isachieved largely through peer pres-sure; managers seem to be driven by asense of pride in balancing theirbooks.

Loan decisions are made by thebranch, rather than by an algorithm,and are based purely on whether thebusiness has the necessary cash flowsto service it. Mr Boman is dismissiveof the modern practice of thinkingthat any loan – no matter how risky –can be made as long as the price ishigh enough. “It takes such a longtime before you get the answer – wasit the right price or not? And, at thattime, if you see that it was the wrongprice, then you have already distrib-uted the margin back to your share-holders in those good years.”

Handelsbanken’s approach is notalways popular with investors, but itcaptures the current zeitgeist.

Mr Boman recalls a story aroundtriple A assets, supposedly the safestof all, that underlines his desire not toget carried away and to remain con-sistent. Some US investment bankerscame to sell Handelsbanken somemortgage-backed securities before thefinancial crisis that would offer 8-9per cent in yield for, as Mr Boman

‘We knowthat wehave toprepareourselvesfor badtimes’

BUSINESS LIFE

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FINANCIAL TIMES MONDAY JANUARY 14 2013 ★ 11

ARTS

Larry Goldings’ organ trio started out20 years ago, tweaking a classic idiomin Smalls, a New York basement jazzclub. Now each musician combineshigh-profile tours and session workwith their own band-leading projects.Goldings is based in LA – he hasplayed piano with singer-songwriterJames Taylor since 2001 and has agrowing list of film credits – whileguitarist Peter Bernstein anddrummer Bill Stewart are equally indemand in New York.

But they always manage to squeezea dozen or so gigs a year into theirbusy schedules, and clearly relish thechance to deliver the no-nonsensegrooves and subtle interplay, crispbeats and flowing solos that theorgan trio form demands. At thispacked-house gig, they deliveredhard-swinging modernism and funkyboogaloos, lush ballads and lounge-lizard blues with the informality ofold friends making up for lost time.

Once in gear, though, the bandplayed with the intensity and creativespark to enthral as well as excite.Goldings and Bernstein have aseemingly telepathic sense of eachother’s sounds and textures, whileStewart’s steady pulse comes with asharp supportive chatter. As a unit,they balance a warm heart withpercussive bite, and sound terrific.

Neither set strayed too far fromorgan-trio orthodoxy. The first openedwith a hard-boiled swinger, the secondwith a loping swish of brushes. Bothfeatured a mid-set ballad – a rareJobim waltz, “Beleza”, in the first,“Stairway to the Stars” in the second.There were sensuous fades and funkybeats, dazzling trades and the constantebb and flow of tension and release.

But this was no retread of well-worn themes. Long solos flowed withpurpose and were laced with theblues, but here they were supportedby a fine mesh of harmonic intrigueand whiplash cracks from Stewart’ssnare. And each tune had a highlightsurprise – an odd whirligig organintro on Rod Argent’s “Time of theSeason”; Stewart rolling seamlesslyround his kit on “The Acrobat”;Bernstein’s singing tone turning togrit on the finale, a down-and-dirty

boogaloo called“The Dragonfly”.After some

coaxing, they returned for afinal modernist romp on HankMobley’s “Breakthrough”.

www.ronniescotts.co.uk

Mari Mahr is a brilliant artist ofHungarian origin who divides hertime between London and Berlin. Toogentle a person ever really to pushherself forward, Mahr has had thekind of career which is faultless, butnot very visible. Now in herseventies, she is valued far below herworth. She works in relatively smallseries that are often about her family,occasionally about figures of morepublic standing. In series after series,she has produced works of astuteelegance, seeking to situate her ownemotional life in the objects aroundher. These objects acquire theirpower through their attachment tothe people who matter to her or theworlds to which they belong. Herhallmarks are exquisite delicacy ofpsychological enquiry, matched andmade visible by a comparabledelicacy in the photographsthemselves. By quality of work, she isone of the very great artists of recentyears; by the amount of limelightshone upon her, almost invisible.

In the early 1980s, as something ofa feminist looking for strong womenmodels, Mahr came upon the figureof Georgia O’Keeffe. This is how shedescribed it: “In the very last sceneof a documentary movie, an oldwoman climbs a ladder all the way tothe top of her house. I was impressedby the strength and charisma of suchan old woman and decided to findout more about her. I learnt she waspartly Hungarian, but what is moreimportant, I absolutely loved how hercareer came about, the way she madeher choices, how she chose her men,how she made situations awkward forherself, painting away when it wasn’ta womanly thing to do.

Adding a newdimension tophotography

Tribute: MariMahr’s ‘O’KeeffeNew York, 1925’(1981); below,Peter Bernsteinfrom LarryGoldings’ trio

David Sinclair

JAZZLarry GoldingsRonnie Scott’s, London★★★★☆Mike Hobart

Director Phil Willmott notes thatFair Em – an Elizabethan comedyplucked from oblivion – is a “quirky,slight entertainment written around1590 . . . The fact that it was wronglyattributed to Shakespeare in thelibrary of Charles II is probably thereason why you’re here.”

Not for the drama? Fair Em’sauthor is a mystery. The text“contains little or nothing written bythe enigmatic paradox known as‘Shakespeare’,” claims Willmott. “Ithas neither the poetry nor thesubtext that we associate with theestablished canon.” I agree.

It has two plots that overlapbriefly and superficially. William theConqueror (played by Jack Taylor asa humourless boor) pursues aSwedish princess to Denmark.Unwittingly, he kidnaps a Danishprincess (disguised as a Swedishprincess) and marries her. InEngland, meanwhile, pretty Em,daughter of a knight disguised as amiller, fends off suitors bypretending to be deaf and blind. It allends implausibly – impossibly – well.

For no apparent reason, the actionis performed against a black andwhite frieze of 16th-century London.Young minstrels supply a musicalcommentary with pastoral ditties sungdoo-wop style. Characters wear tightsand puffy tunics, “olde” hats andsatin slippers. It’s hackneyed fare.

According to Willmott, thecompany is working for free. Thismeans they “can take artistic risksbecause nothing monetary is atstake”. Yet beyond choosing to stageFair Em at all, those risks are hardto see. It looks and sounds like a“period” piece almost to the point ofpastiche. Moreover, there is nothingat stake in the drama. Comedy isgrounded in pain. Every action musthave real (potentially humiliating)consequences. Here, we are shownfaces working in grotesque overdrivein place of inner feeling; there’s agood deal of hammy stage weepingwith no heart behind it. And with nostakes, there is no real laughter either.

Brighter spots include the brazenzest of Madeline Gould as Blanch,Princess of Denmark, and somebouncy historical dancing.

Willmott’s “slightentertainment” is barelyentertaining. Fair Emlooks bound for obliviononce more.

www.fairem.co.uk

THEATREFair EmUnion Theatre, London★☆☆☆☆Alexander Gilmour

“I’d read her diary where shewrites so eloquently about Taos,Black Place and so on – I saw it allin colour. This was before I’d beento America, so all the knowledge ofthe country came from Technicolormovies. I did the series in 1981,about her travels in the 1920s, usinga black car like the one Stieglitz[the photographer, her husband] hadgiven her.”

It sounds simple, and so perhaps itis, once you’ve done it. By makingthe stagey elements of her picturescompletely apparent, Mahr lets usknow immediately that we aren’tlooking at fact. Every standardpicture element is up for revision:scale, perspective, narrative . . . this isa complete taking of control by theartist of those things that morenormally constrain photographers.The obvious edges and folds, theblock colours, the ultra-plain symbolicelements (skyscraper, cow, adobe, car,flag) give the clues to a reading ofO’Keeffe’s story that is both heroicand curiously domestic in scale. Whatresults is a tribute and a separatework in its own right. Mahr hasadmiration and respect for O’Keeffe,and a point of humour about her too.

These are variants of collage, setdesign, maybe diorama. They’relovely as little postcards, andsensational as the chapters in anepisodic biography. They’re anythingyou like except flat photographs. Nomatter that it is little known; this isone of my great series.

This is part of a series on photographyappearing in the FT and in FTWeekend. To see more selections, go towww.ft.com/hodgson

A critic’s dream collectionHodgson’s Choice

“Words are pattern-like, and in theirhorizontality they answer myinvestigation into landscape. They’realmost not words – they are objectsthat become words,” says Ed Ruscha.He is an artist whose graphic vitalitytranslates naturally into prints, asillustrated in this new show ofdecades of works on paper, some firstpublished by Bernard Jacobson,

others privately loaned. The diversityof expression achieved by the use ofsingle words is arresting – from thehard, block-capital “EVIL”, written inRuscha’s own blood, to the free-floating letters scrawled erraticallywith spilled liquid, as in “Lisp”.

Two versions of the lithograph“Hollywood”, one hot pink and ochre,the other with additions of caviarand Pepto-Bismol, open the show,marking Ruscha as the artist who inthe 1960s travelled unfashionablywest, to Los Angeles, rather thaneast, to New York, for his vision ofAmerican dystopia. On his Midwestjourneys he encountered the petrol

stations which became the subject of“Standard”, a series of paintings andprints exhibited here. “Being on thehighway is an important thing. I’mdrawn to the horizontal sweep. Ithink it has to do with driving –looking out on flat landscapes,” hesays. Stunning one-metre-wideetchings here depict the emptylandscape in twilit colours aslayers of horizon lines, with one,two, three isolated tiny figures –“Man Walking Away From It All”;“Two People Temporarily Separated”;“Three Daughters”, evoking Lear onthe heath.

Laconic, flat tone and historicalallusion are both typical Ruscha. Hisreferences span art history, film,literature; apparent here is aninterest in the surrealists, for whomwords were psychological tools –rather than, as Ruscha treats them,abstract forms. Surrealist fantasiesare evoked in his “Insect” portfolio:ants and cockroaches, reminiscent ofLuis Buñuel’s Un Chien Andalou, aremeticulously delineated creatureswith detailed bodies and wings. Oneoversized print, on a whitebackground covered with images ofthousands of flies, bears in grey thewords “I’m Amazed”.

Until February 15www.jacobsongallery.com

Arresting:Ruscha’s‘Evil’ (1973)

When the word meets the worldVISUAL ARTSEd Ruscha: I’m AmazedBernard Jacobson Gallery, London

Jackie Wullschlager

Amateur stagings of Picnic, the 1953William Inge drama in Broadwayrevival from the Roundabout, mayhave a fighting chance of matchingplay to production. A professionalaffair, however, must struggle todispel the dated qualities, andpersuade us that professionalsshould bother conveying the relativenaivety of the situations in a smallKansas town. The challenge mostlyeludes this production, directed bySam Gold and featuring such first-rate actors as Ellen Burstyn andMare Winningham, in which thevillage innocence tends towardsthe overdone.

For example, when Hal Carter,the classic young 1950s drifterportrayed by Sebastian Stan as anaccumulation of poses, removes hissweaty shirt, exposing his torso toHelen Potts – the weathered womanwho has temporarily engaged himfor odd jobs – the mouths-agaperesponse of Mrs Potts and herneighbours in the Owens householdnext door would have you believe

that hard-working Midwesternwomen had never seen a sweatyyoung working man.

Such obviousness mutes thepossibility that the late-summersultriness can build stealthily to aclimax: the response has abruptlystripped Hal and discarded thisex-football star as brutally as thetwo women he claims robbed himafter a roadside-motel romp.

A stripped-down approach tomatch a stripped-down centralcharacter may one day restore

Picnic’s lustre; the setting here, ahulking house and porches designedby Andrew Lieberman, tends tooverwhelm the performances, evenwhen the interiors furnish an almost“American Gothic” glimpse ofdomesticity.

This is a shame, because the play’scentral theme – how youthful beautycan be emotionally isolating – retainsa certain potency. Maggie Grace,who plays 18-year-old Madge Owens,the pretty girl drawn into Hal’s aura,gracefully registers the character’smisfit quality, even as her chemistrywith him doesn’t greatly ignite.

And chemistry is key: whenWilliam Holden first touched KimNovak, in the 1955 movie version,the effect on some audiences waserotic. If we are denied such frissonsin 2013 on Broadway, we can at leasttake refuge in the finely etchedcharacterisations among thesupporting cast. Burstyn andWinningham movingly suggestwomen who’ve been ill-used by men,and Reed Birney, as aschoolteacher’s beau, Howard,displays the virtues of a restrainedinterpretation. When he appears onthe porch at story’s end, totingsuitcases, he carries the burden ofall small-town frustrations alongwith him.

www.roundabouttheatre.org

THEATREPicnicAmerican Airlines TheatreNew York★★☆☆☆Brendan Lemon

Poses: Sebastian Stan Joan Marcus

ARTS ONLINEFive writers, fourcontinents, threecenturies: for a previewof ‘Feast’, the Young Vic’sforthcoming portrait ofYoruba culture, visitwww.ft.com/arts

12 ★

MONDAY PRIZE CROSSWORDNo. 14,210 Set by DANTE

ACROSS 1 Composer of number in brash

arrangement (6) 4 Being without cash is difficult at

university (4,2) 8 Moving home (7) 9 Body found in the motorist’s boot,

perhaps (7)11 Possibly end a better woman –

even a saint! (10)12 An almost perfect concept (4)13 Poor shot at route-planning (5)14 They’re intended to encourage

laying in a little money (4,4)16 Got fired, sadly, so sack someone

else? (3,3,2)18 More mature, so given rent and

key, right? (5)20 A mother for the first orphan? (4)21 Disciplinarian marks a test harshly

(10)23 Chap comes back in new suit,

gets big wave (7)24 Fast scoring rate (7)25 Bedclothes used as ropes (6)26 Worshipped bustle and colour (6)

DOWN 1 It could be a noun, adjective or a

verb, perhaps (5) 2 Opposed to making a profit –

good man! (7) 3 Wandered, heading Middle East

instead of west (9)

5 A backwater that’s far from sleepy? (5)

6 Refuse to go through all the cases (7)

7 Person who makes little effort to move (9)

10 Either rise quickly or don’t budge (5,4)

13 Love poems are about the same – too much of a good thing (9)

15 It’s not clear how the eggs may be cooked (9)

17 Could it lead to an Anglo-Catholic marriage? (7)

19 French chemist late on his way up (7)

21 Persuade agency girl to start task (5)

22 Embarrassed after some hesitation went wrong (5)

SOLUTION 14,199

The winner’s name will be published in Weekend FT on January 26

A prize of The Good Word Guide by Martin Manser and How to Sound Clever by Hubert van den Bergh will be awarded for the first correct solution opened. Solutions by Wednesday January 23 marked Monday Prize Crossword 14,210 on the envelope, to the Financial Times, 1 Southwark Bridge, London SE1 9HL. Solution on Monday January 28.NAME...................................................................................................ADDRESS.........................................................................................................................................................................................................

Monday January 14 2013

How much spare?Blog: Gavyn Davies onthe lack of agreementabout the size of theoutput gap, and whatshould be done about it

www.ft.com/gavyndavies

Surge in thesingle currencyPodcast: Alice Ross, FTcurrencies correspondent,asks Michael Sneyd,forex strategist at BNPParibas, whether theeuro rally will continue

www.ft.com/hardcurrency

Week’s most read

1

2

3

4

5

Chávez will miss inauguration, sayofficials

US warns UK against withdrawalfrom Europe

Morgan Stanley to axe 1,600 jobs

Brussels to force change at Google

London Underground’s 150thbirthday

TODAY

The Lex Column Best of FT.com

The outgoing head of Willis took overat the insurance broker, which actsas a go­between for underwriters andinstitutions that want to buyinsurance, less than a year beforethe September 11 terrorist attacks.Willis also offers reinsurance broking,and consulting and actuarial services.Listed in New York and with itsheadquarters in London, it is theworld’s third­biggest insurancebroker, behind Aon and Marsh. MrPlumeri stood aside as chiefexecutive this month and is leavingthe company in the summer.

Edited highlights of a video interviewwith FT.com appear below.

How have companies’ approachesto managing risks changed duringyour tenure?I think that the approach tomanaging risk has changeddramatically, and in a lot of casesmaybe not enough. If you looked atthe top 10 risks of 10, 12 years ago,they would be much different thanthey are today.

I don’t think climate change wouldbe number one 12 years ago . . . Ifthere were a tsunami or a hurricaneor a flood, it would be considered ablack swan – a one-in-200-year event.Today, they seem to be more greythan they are black. They happen allthe time. Hurricane Sandy was aperfect example.

Estimates of losses arising fromSandy have risen steadily. To whatextent does the industry rely oncatastrophe modelling agencies?What we have learnt, over time, isthat they are just a frame of

VIDEO ON FT.COMTo watch the full interview with JoePlumeri go to www.ft.com/vftt

reference, that you can’t dependtotally and completely on modelling.

What is the impact of low interestrates on insurers’ appetite forunderwriting?They’re actually taking less risk,being more disciplined, which meansit becomes a harder job for insurancebrokers to find the right marketsbecause investment income is notgoing to bail them out. In otherwords, if you [as an insurer] made amistake and you underwrite thewrong risk and the wrong price, youalways had investments [in the boomyears] in a much more sturdy andvibrant economy.

Aon recently moved its headquartersfrom Chicago to London. Is the USlosing its edge for insurance?I’m not sure it’s just insurance.I think you’ve got to get your acttogether for people to want toinvest in you, whether it’s acompany or a country. Aon did it asa broker, I think, in part foreconomic reasons. But they alsosuggested that [London] was a muchmore global city. I think this is agreat global city.

Looking back on your 12 years, isthere anything you would have donedifferently? The HRH acquisition, forexample [of October 2008]?On my tombstone will be “Here liesJoe Plumeri, and there was HRH in2008 . . .” I think it was the rightacquisition at the wrong time. In thelast four years, it wasn’t so goodbecause of the economy. I feelstrongly that in a couple of yearsit will be looked at as a prettycourageous thing to have doneand put Willis in the driver’s seatin the US.

What advice do you have for othercompany leaders who might haveambitions to stay in post for thelength of time you have?I don’t think it has anything to dowith how long you’ve been in yourrole. I think it has a lot to do withhow passionate you are about it.As long as you’re passionate aboutit after 12 years then you shouldkeep doing it. I think if you loseyour passion you should stopdoing it.

Alistair Gray

Joe Plumeri Chairman, Willis

‘You can’tdependtotally andcompletelyon modelling’

View from the top

Sometimes, sticking to a tough targetcreates an impression of disciplineand confidence. There comes a point,however, when doing so can looklike desperately clinging to Plan Abecause there is no Plan B. Are youlistening, Li & Fung? Today’s shareprice reaction to its thumping profitwarning late on Friday should drivehome that point forcefully tomanagement.

Plan A consists of producing coreoperating profit of $1.5bn by the endof 2013 as the culmination of a three-year goal. But the Hong Kongclothing seller and retail sourcinggroup warned that the figure for 2012would be down two-fifths on the yearbefore, at about $530m. So coreoperating profit must triple this yearif the company is to meet its goal.At least management has not beensitting still. Last year’s profit fallincludes a chunk of restructuringcosts from its US business. Hopefullythat will have involved a degree of“kitchen-sinking” of bad news tomake 2013 look better.

But the suspicion must be that Li& Fung’s margins are not going toget much better. There are itsunderperforming acquisitions forstarters. The company admitted thatfull-year earnings would be flatteredby several writebacks from thecancellation of payments contingenton the performance of acquisitions.Put another way, it will gain fromnot having to pay up. But that isbecause the companies it has boughthave not met their targets. Moredetail on why not – and by howmuch they have missed – would helpinvestors. After all, operatingmargins at the 20-plus smallish dealsof the past two years werecollectively about double its ownlong-run 4 per cent average whenthey were acquired.

Li & Fung’s shares have barelyrecovered from their quarter-longdrubbing after the company’s half-year profit warning in August. Lowernumbers were expected for the fullyear. But a 40 per cent drop farexceeds expectations. Anotherpounding today seems likely.

LEX ON THE WEBFor additional Lex notes on today’sbreaking stories go to www.ft.com/lexTo receive emails go to www.ft.com/nbeFor BlackBerry go to www.ft.com/mobileLex on your mobile: www.ft.com/ftapp

On the rackLi & Fung

Source: Thomson Reuters Datastream

Share price (HK$)

2010 11 12 1310

12

14

16

18

20

22

24

26

European telecomsIt was less a Viennese waltz andmore a slow march as TelekomAustria became the first Europeantelco to update its 2013 financialoutlook last week. Revenues are setto dip, capital expenditure stays high– at 17 per cent of anticipated sales –and dividends remain a shrunken

5 cents a share. Worse, the company– of which Mexico’s Carlos Slimowns 23 per cent – said marketconditions were so uncertain it couldnot provide earnings guidance.

The question for investors iswhether this sets the tone forEuropean telcos generally in 2013.Revenue will certainly remain a bigissue. It has been slipping for fouryears, with declines on the fixedtelephony side being replicated inmobile, first in southern Europe butnow in northern regions too. True,demand for high-speed data servicescould offer some relief – in the US,most operators have reported higheraverage revenue per user assmartphone penetration has risen.But that leads on to Europe’s secondchallenge: the continued need forinvestment in fibre and 4G LTErollouts. Unlike sales, investment hasbeen rising, both in absolute termsand as a share of revenues. Thelatter figure averaged 14 per cent in2012. It is unlikely to fall in 2013.

So the squeeze on dividends andcosts will continue. Morgan Stanleyeven suggests that fresh equity couldbe issued by a big telco in 2013 forthe first time in a decade. As mobiletermination rates continue to fall,recent entrants remain a threat –witness the French experience. And,as the Austria experience showedlast year, consolidation in theindustry faces lengthy regulatoryhurdles, even if attitudes amongregulators in Brussels have becomemore benign.

Yet, in spite of last year’s marketunderperformance – the sectorreturned a negative 4 per cent –earnings-based valuations are nolower. It may be a while beforeinvestors trip the light fantastic.

Wells FargoLong released on the same morningas those of glamour boy JPMorganChase, Wells Fargo’s results wereoften overshadowed, even in the US.Foreign investors heard even lessabout the San Francisco-basedlender. But that changed steadilypost crisis as Wells became the onlybig bank whose share price, at about$35, has more or less returned topre-crisis levels. It outperformed theUS financial sector by more than60 per cent along the way. Newlyconfident, Wells reported fourth-quarter results all on its own lastFriday.

The feel-good story ends there,however. Even more than forinvestment and universal banks,Wells encapsulates much of thesloppy thinking about financialinstitutions these days. Sure, thelender has done well as rivals suchas Citigroup and Bank of Americahave pulled in their lending horns.And Wells was right to suppose thatmillions of home and small businessborrowers across the nation remainperfectly creditworthy. But themistake is to think this is a robustbusiness model. Of course there is ademand for loans, and of courseborrowers seem to be able to pay:Fed rates are in effect zero.

As if to highlight the fact thatinvestors have forgotten that Wellsis operating in anything but normalconditions, the share price fell on theresults. In part that was on worriesthat net interest margins fell 10 basispoints from the third quarter. Thatseems to suggest that higher interestrates would be a good thing, becausespreads would widen again. But ajump in borrowing costs would makelast quarter’s nearly one-fifth fall inmortgage applications look like abonanza. And it does not bearcontemplating what higher rateswould do to asset prices and defaults(the release of reserves added $250mto income last quarter).

Wells Fargo is a case study inwhat can happen to genuinely usefulbusinesses when central banksdistort markets for too long.

JANUARY 14 2013 Section:FrontBack Time: 13/1/2013 - 19:25 User: swordsd Page Name: 1BACK USA, Part,Page,Edition: EUR, 12, 1

★ 13

Companies and sectors in this issue

FINANCIAL TIMES

Companies

Amazon.........................................5

Aon...............................................13

Apple..............................................5

BP.................................................16

Baidu............................................14

Bank of America..............12,13,15

C&W Communications.............15

Cairn Energy...............................16

Cargill...........................................16

Chevron.......................................13

Chrysler.......................................16

Cisco Systems...........................13

Citigroup.................................12,13

Compass Minerals .................... 16

Credit Suisse................................1

Eurohypo.....................................14

Exillon Energy.............................15

ExxonMobil..................................16

Federal Reserve........................20

Fiat................................................16

France Telecom.........................14

General Motors..........................16

Goldman Sachs............................1

Google............................................5

Handelsbanken ..................... 10,15

Hays.............................................20

Hennes & Mauritz................10,15

Herbalife......................................14

Honda............................................7

Huawei.........................................14

Iberdrola......................................14

Ikea..........................................10,15

JPMorgan Chase.................. 12,13

Jaguar Land Rover ................... 16

K+S...............................................16

Li & Fung....................................12

Lloyds Banking Group..............15

Marsh...........................................13

Michael Page.............................20

Nissan............................................7

Plum Creek.................................13

Portugal Telecom......................15

Quicken Loans........................... 15

Robert Walters..........................20

Rosneft ........................................ 16

Royal Bank of Scotland...........15

Royal Dutch Shell ..................... 16

Scottish Power .......................... 14

Siem Industries..........................14

Société Générale.......................14

Starbucks ...................................... 1

Statoil...........................................16

Tata Motors................................16

Telekom Austria ........................ 12

Vivendi.........................................14

Volkswagen.................................16

Wells Fargo.......................12,13,15

Weyerhaeuser.............................13

Willis........................................13,15

ZTE ............................................. 14

Sectors

Automobiles................................16

Banks....................................1,13,15

Electricity.....................................14

Forestry & Paper.......................13

Gen Financial..............................14

Healthcare...................................14

Mobile & Telecoms..............13,14

Nonlife Insurance ................. 13,15

Oil & Gas .................................... 16

Support Services.......................16

© THE FINANCIAL TIMES LIMITED 2013 Week 3

News Briefing

Source: Thomson Reuters Datastream

UK retail salesAnnual % change

Jan 2011 Nov2012-2

0

2

4

Data expected to show 0.1%UK retail growth, Page 20

Jaguar buoyantCarmaker’s sales rise asChina overtakes the UK asits largest market. Page 16

Iberdrola halts UK saleSpanish group scraps planto sell part of its ScottishPower arm. Page 14

Salt suppliers sufferMild US winter and lack ofsnow melts hopes of saltsuppliers. Page 16

On MondayThe upcoming round ofUS earnings is unusuallyimportant. Page 14

Detroit internationalCar show will see effortsto make Americans loveglobal car designs. Page 16

Baidu landmark dealChina internet group toprovide browser acrossAfrica for France Telecomsmartphones. Page 14

UK recruiter to reportInvestors will be eager toknow if Michael Page’sperformance improved inthe latest quarter. Page 20

Handelsbanken cluesSwedish bank’s chief saysstudying retailers’ growthhas been key to its quickUK expansion. Page 15

Slow pace frustratesArctic oil exploration ismoving at a glacial pacefor energy majors. Page 16

Intel gloomUnder­utilised plants andinventory write­offs citedfor chipmaker’s expectedflat revenues. Page 20

Venn eyes propertyFinancial boutique’s shiftshows shadow banking’sadvance as traditionallenders retreat. Page 14

GE fuelled by savingsCost savings of $1bn lastyear are expected to fuelrespectable growth at theindustrial group. Page 20

FTSE heads ‘best’Large UK groups’ CEOsdeliver far greater valuethan those at smallerones, research shows.www.ft.com/ukcompanies

Companies

Monday January 14 2013

Raising the roof Lenders begin to rebuild the US mortgage market Page 15

Lumbersurges onUS housedemandBy Anjli Raval in New York

US lumber prices are near aneight-year high as demand forthe staple commodity of theAmerican housing sector riseson the back of a pick-up inhome construction.

Lumber, or sawn timber,futures contracts for Marchdelivery stood at $380 per 1,000board ft on the Chicago Mercan-tile Exchange on Friday, afternearing $400 in late December –the highest level since mid-2005.

Prices rose by almost 45 percent in 2012, as more homeswere built in response to anuptick in demand from home-buyers eager to take advantageof record-low interest rates.

Lumber prices have also beenboosted by supply disruptionsbecause of the shutdown ofsome North American manufac-turing plants since the down-turn. Renewed export demandfrom China and a mountain-pine-beetle epidemic that is tak-ing its toll on lumber produc-tion in British Columbia areadditional factors.

“We’re at the beginning of along upward cycle in the hous-ing market,” said Paul Jannkeof Forest Economic Advisors, aconsulting firm. US lumber con-sumption “will be up 10-15 percent a year for the next threeyears at least”.

Forestry shares are also onthe rise. In the past six months,Weyerhaeuser, which grows andharvests timber, and PlumCreek, one of the largest timberlandowners in the US, have seentheir stock rise 35 and 16 percent respectively.

“Now is a good time to beinvested in lumber,” saidJoshua Barber, analyst at StifelNicolaus. “These companiesdeferred harvests over the pastfew years as it was not anadvantageous time to sell.”

Construction of family homesand apartments – accounting forup to 45 per cent of lumberdemand – fell from a 2005 peakof 2.07m to a 2009 trough of554,000. Lumber futures dropped65 per cent over this period.

Industry predictions are for929,000 new houses and apart-ments to be built in 2013 – a 20per cent rise from the averageanalyst projection for 2012.

By James Fontanella­Khanin Brussels andDaniel Thomas in London

Europe’s telecommunicationscommissioner will lay down aseries of far-reaching reformsthis year to support the forma-tion of a pan-European telecomsmarket intended to fostergreater competition and invest-ment in a sector hard hit by thefinancial downturn.

Neelie Kroes, a vice-presidentof the commission, told theFinancial Times that Brusselswas determined to deliver thenecessary policies to furtherharmonise the industry acrossnational borders.

“We’re working on a range ofmeasures to create common andstable conditions across the EUfor telecoms competition, invest-ment and growth, which shouldalso make cross-border consoli-dation more attractive,” MsKroes said.

“Various forms of asset shar-ing can promote competitionand investment – regulatedaccess to dominant infrastruc-ture on terms that support fur-

ther investment by all players,access to other utilities’ infra-structure on reasonable terms,sharing of wireless assets suchas masts or spectrum underclear conditions,” she said.

Her strategic plans for 2013come just days after it emergedthat chief executives of Europe’slargest telecoms groups had metJoaquín Almunia, competitioncommissioner. Those talksended with a promise to lookinto ways that a single Euro-pean telecoms market couldwork.

Etno, the industry lobbygroup, said the telecoms compa-nies would now present theirfindings about the possible crea-

tion of a single European mar-ket to Ms Kroes.

She said that while she waskeen to further harmonise themarket, she was not consideringpushing for the creation of asingle telecoms regulator at thisstage. Rather, she stressed theneed to strengthen co-operationbetween the commission andnational regulators to drive thechanges that the industry needs.

The commission will be givingfurther guidance during 2013 onthe scope for network-sharingby competitors – including pool-ing infrastructure – to help tele-coms companies speed up therollout of superfast 4G services.

Brussels has already approved

the sharing of radio spectrum aspart of an effort to meet risingdemand for wireless data traffic.

Among other initiatives, thecommission plans to ease accessto a range of infrastructure suchas sewage ducts and rail tracks,which could bring down thecosts of network building, aswell as the existing networksbeing used by non-dominanttelecoms companies.

Ms Kroes said 2013 would be acrucial year. “The ability . . . todeliver broadly harmonised reg-ulation and a truly common EUtelecoms market will be testedthis year as never before,” shesaid. “I trust that it will prove tobe up to the challenge.”

EU to set out telecoms reformPolicies will support apan­European marketPlan to foster greatercompetition in sector

By Tom Braithwaite andTracy Alloway in New York

Big US banks are set to reportthe thinnest margins betweenthe rates they borrow and lendsince the 1950s, as the FederalReserve’s ultra-low interest ratepolicy squeezes profits.

Wells Fargo sparked a sell-offin bank stocks on Friday whenit revealed its net interest mar-gin had fallen more than antici-pated as the bank could not findsafe and profitable avenues toinvest tens of billions of dollarsof deposits.

JPMorgan Chase, Bank ofAmerica and Citigroup are allexpected to suffer from thesame phenomenon in theirfourth-quarter earnings thisweek. The average of analysts’estimates for the four biggestbanks’ net interest margin is2.8 per cent, down from about4 per cent 10 years ago.

Longer-term industry datafrom the Federal Deposit Insur-ance Corporation shows the lowlevel was last reached morethan 50 years ago.

By endeavouring to reduce

short-term and long-term rates,the Fed has helped flatten theyield curve, restricting banks’ability to make money by bor-rowing short-term – such as indeposits – and lending long. Theidea is to stimulate the economyby giving banks more incentiveto offer shorter-term loans.

In this climate JPMorgan’straders tried to generate profitsby investing excess deposits in adisastrous credit derivativesarbitrage, which ultimatelyracked up more than $6bn inlosses; an internal report into

the incident is expected to bepublished this week. Some bankinvestors and analysts worrythat others may opt for simi-larly risky strategies to compen-sate for the lower rates.

“Ultimately you have thisdouble whammy. The Fed’saction is flattening the yieldcurve, which is pushing downinterest margins, and the [bal-ance sheet managers] at thebanks are saying they don’twant to go too far out on thecurve,” said Brad Hintz, bank-ing analyst at AllianceBern-

stein. “The banks face a reallyinteresting problem.”

But Tim Sloan, Wells chieffinancial officer, said the worryover net interest margin was“overblown”.

“We love lending money –don’t get me wrong – but, forexample, in this quarter the pri-mary driver for the decline innet interest margin was becausewe had outsized depositgrowth.” He said Wells was stillable to raise earnings per shareon the back of fee income.

Here, too, the Fed’s interven-

tion in financial markets is play-ing a role, in this case boostingbank profits. The central bank’spurchase of mortgage-backedsecurities is raising to recordlevels the spread between therates at which banks offer loansand at which they sell them on.

Despite the headwinds to netinterest income, improved mar-ket conditions are expected tohelp all five Wall Street banks,apart from BofA, to report year-on-year rises in profits.

Post­crisis lending, Page 15

Big bankson thingroundwith ratemargins

Average net interest marginUS banks*

Sources: Bloomberg; companies; Thomson Reuters Datastream ** Tracks the share prices of national and regional banks in the US* Wells Fargo, Citigroup, Bank of America and JPMorgan

%

Net incomeEstimates, Q4 2012

Annual % change

1999 2005 122.5

3.0

3.5

4.0

4.5

$1.8bn

73.8

Goldman Sachs Morgan Stanley Citigroup JPMorgan Bank of America

$0.5bn

n.a.

$2.8bn

130.4

$4.8bn

27.9

$1.8bn

12.0

KBW Bank index**

1999 2005 10

10

1220

40

60

80

100

120

Insurance broker payments underfire amid conf lict of interest claimsBy Alistair Gray in London

Opposition is growing to areturn to the contentious prac-tice of insurance brokers receiv-ing payments from underwritersthat critics complain give theformer incentives to avoid pur-suing policyholders’ claims.

The outgoing head of theworld’s third biggest insurancebroker after Marsh and Aon toldthe Financial Times he was“astounded” that corporate poli-cyholders tolerate practices hesaid create a conflict of interest.

Joe Plumeri, who is steppingdown from Willis after 12 yearsand who has criticised so-calledcontingent commissions in thepast, said the industry was“back to where it was before” aprevious regulatory crackdown.

John Phelps, president ofRims, a New York-based societyof global risk managers that

represents corporate insurancebuyers, said: “Brokers canengage in this conflict of interestlegally. It’s an increasing con-cern.”

Insurers pay the commissionsto brokers based on factors suchas how much business theyplace with them and how profit-able it is.

“[Brokers] are getting paid ifan insurance company makesmore money,” said Mr Plumeri,“and the way you can makemore money is if they don’t paya claim. And the whole idea [asa broker] is to get your client’sclaim paid. That’s a conflict –and it’s legal . . . Marsh does it,Aon does it.”

Top brokers were bannedfrom receiving contingent com-missions after an inquiry abouteight years ago led by EliotSpitzer, former New York attor-ney-general. But regulators

agreed to change the terms forbrokers in 2010, resulting in aless onerous compliance regime.

Bruce Hepburn, chief execu-tive of Mactavish, a UK insur-ance research boutique, said:“The remuneration model hasbecome untenable in terms ofpoor transparency and conflictsof interest.”

Aon said: “Contingent com-missions are not and never havebeen an important part of ourbusiness strategy.” Marsh said:“We provide details of how weare paid so that clients canmake fully-informed insurancepurchasing decisions.”

People close to rival brokerssay Willis itself last year beganaccepting contingent commis-sions for employee benefits busi-ness in the US.

Calls for disclosure, Page 15www.ft.com/vftt

JANUARY 14 2013 Section:2Front Time: 13/1/2013 - 20:14 User: pryorc Page Name: 2FRONT EUR, Part,Page,Edition: EUR, 13, 1

14 ★ FINANCIAL TIMES MONDAY JANUARY 14 2013

COMPANIES

This results season will be a crucial economic indicator

A moment of truth is at hand. Starting inearnest this week, US companies willreveal how profitable they were in 2012, ina procession soon to be joined bycompanies in Europe and Asia.

This earnings season is unusuallyimportant. In part that is simply becausein the fourth quarter companies arerevealing full-year earnings that havegenerally been audited more stringentlythan in the other quarters, when chieffinancial officers have a freer hand toengage in earnings manipulation. In someEuropean jurisdictions, this is investors’only opportunity to have a rigorous updateon the health of the companies they own.

But it is also important because of the

point at which it arrives in the cycle. Thecycle of corporate profits is nowthoroughly detached from the economiccycle – to the extent that the debate isnow whether profits have peaked and areheading down, just as the economic debatefocuses on whether the US, in particular,is ready at last for a robust recovery.

The disjunction has everything to dowith the financial crisis and its fallout.Cheap money makes it easier to squeezeout corporate profits, even if it seems tobe taking much longer to percolate intostronger economic activity. It alsostrengthens the hand of capital againstlabour. Unions have less bargaining power,companies reduce costs with sweeping jobcuts and therefore make much greatermargins when economic activity returns.

Whether measured by the share thatprofits take out of GDP, or by corporateoperating margins, profitability has for awhile appeared historically high, especiallyin the US. Over time, margins have showna strong tendency to revert to the mean.So the question is whether that processhas started, and whether tighter margins

will thwart companies from benefiting tothe full from any economic rebound.

The share of profits in the US economyappears to have fallen slightly last year.And on a year-on-year basis, profits forS&P 500 companies fell in the thirdquarter, by 4 per cent. Earnings globallyhave been subsiding since the spring oflast year. Earnings momentum – definedby Andrew Lapthorne of Société Généraleas the proportion of earning estimates thatare being downgraded out of all upgradesand downgrades by brokers – is very poorat 42 per cent, consistent with a recession.Cash flow is declining, Mr Lapthornepoints out, bringing capital expendituredown with it.

So the scene might seem set for a wishy-washy economic recovery and collapse inmargins to create a fall in profits.

But the picture is finely balanced. In thechatter ahead of this quarter, companiesare talking down their prospects a littleless than of late. The consensus ofanalysts at present is for a modestrebound with 1.9 per cent year-on-yeargrowth in S&P 500 companies’ earnings,

according to Thomson Reuters. But that isaffected by the latest round of banks’ legalsettlements with regulators. Prices onbalance probably reflect optimism for ahealthier rebound than this.

And there are arguments that marginsdo not need to fall drastically. First, andmost importantly, the wide margins maybe yet another manifestation of the “Appleeffect”. Looking at a sectoral level, mostsectors of the S&P have margins wellbelow their historic highs. The bigexception is information technology stocks,which have led the market of late, andwhich boast margins on earnings beforeinterest, tax, depreciation and amortisationof 24.3 per cent. According to AndrewGarthwaite, merely excluding tech bringsebitda margins for the S&P 500 down to16.6 per cent – only slightly above theiraverage since 1990 of 16 per cent.

So high margins look more a function ofthe maturing of the tech industry – ormaybe its development into a series ofquasi-monopolies that can get away withpushing up their margins – than of thebattle between labour and capital. Margins

outside the US do not look so historicallyhigh, and in the emerging markets theyare even below average.

Further, it is not clear that higheremployment will hurt margins. Labour’sbargaining power might be weakened, butcompanies’ pricing power would rise asmore people started spending. Marginstend to widen coming out of a recession.

Finally, it is intriguing that companiesare not taking the opportunity to talkdown their chances much. The US politicalsituation, with the next crisis due at theend of next month, provides them ampleexcuses for caution and for revising theirown forecasts downwards. They have notdone so, at least yet. The trickle ofcompanies to have reported so far havegenerally delivered positive surprises.

So this earnings season, unlike manyothers, may provide truly valuableinformation. Watch revenues for thestrength of the economy, and margins forthe progress of the corporate profit cycle.

john.authers@ft.comwww.ft.com/insidebusiness

JohnAuthersON MONDAY

By Daniel Thomas in London

Baidu, China’s biggestonline search engine, willmark its largest interna-tional expansion to datewith an exclusive deal toprovide a mobile browseracross Africa and the Mid-dle East for many of thesmartphones sold by FranceTelecom.

As part of a broaderexpansion in the region,France Telecom will pre-install the Baidu-basedmobile browser for itsAndroid customers inAfrica and the Middle East.France Telecom’s Orangehas a total mobile base ofnearly 80m customers inthe region.

France Telecom said thatAfrica would be the world’smost dynamic telecomsmarket in the next fewyears, adding that theBaidu deal would help drivemobile data adoption inmarkets where Orange isalready seeing increaseddemand for the internetusing smartphones. Orange,which is the third-largestoperator in Africa, said thatdemand for Android devicesdoubled in the second halfof 2012 in the region.

Mobile penetration acrossAfrica varies from just 17per cent in DemocraticRepublic of Congo to 102per cent in Tunisia, mean-ing that there is potentialnew customer growth inmany markets, but the aimfor France Telecom is alsoto give customers their firstaccess to the internetthrough their phones.

The deal marks the firstglobal operator agreementby Baidu, China’s dominantsearch engine, which said

that this was one of its big-gest strategic moves outsideof China to date.

The company said: “Wesee the Middle East andnorth Africa region as par-ticularly important forBaidu. This deal withOrange for a mobilebrowser is of particular sig-nificance because of therapidity of the shift towarduse of the mobile internet –especially in developingmarkets where fixed-lineinternet penetrationremains quite low.”

For France Telecom, thedeal is another part of awider strategy to doubleemerging market revenuesto €7bn by 2015. The com-pany wants to expand in anumber of countries, in par-ticular around a cluster ofwest African nations, andstrike commercial manage-ment agreements wherethere are state-ownedoperators.

Countries on its acquisi-tion list include Togo, Mau-ritania, Burkina Faso andGabon, while it is alreadyamong companies vying totake on the management ofa state-backed group inLibya. The company alsohas longer-term ambitionsin Ethiopia and Algeria,and is interested in thestake being sold in a Moroc-can telecoms business byVivendi.

Meanwhile, Baidu also hasambitions in Africa. Chinesegroups have been active ininvesting in the continentgiven its minerals and otherresources, but have alsobeen involved in fundinginfrastructure projects andproviding finance for otherbusiness ventures. Thisincludes telecoms, whereHuawei and ZTE sell equip-ment for operators as wellas handsets for consumers.

See Lex

Landmarkbrowserdeal forBaiduMOBILE & TELECOMS

France Telecomalliance in Africa

Are you ready to lead thelife that you deserve? Thenyou’re ready for Herbalife.

Herbalife nutritional sup-plements will not just makeyou healthier: by selling itsshakes and vitamins youcould earn some cash aswell. Over 32 years thatpitch has taken Herbalifeinto 80 countries, put itsbrand on the chest of DavidBeckham, and given it amarket valuation of billionsof dollars.

It also means Herbalifeforgoes advertising andproduct marketing infavour of a network of inde-pendent contractors whobuy the company’s productsand sell them on, whilerecruiting, training andmanaging other distribu-tors.

“Direct selling gives theopportunity to sell a prod-uct without the constraintof getting it on a retail shelfand without the constraintof advertising budget,” DesWalsh, president of Herbal-ife, told the FinancialTimes. “We’re relying ontestimonials of those thatsell the product.”

At Herbalife, independentdistributors aspire tobecome consultants andeventually supervisors,recruiting teams of theirown in the hope of earninga share of those extra reve-nues. Networking and salesare done through nutrition“clubs” that Herbalife dis-tributors organise, throughpitches on Craigslist orFacebook, and by old-fash-ioned word of mouth.

“My second check,”Alexis Carillo, a new Herb-alife distributor, wrote onher Facebook page lastmonth. “May not be a lotbut [I] just started gettingdistributors. I am not doinganything for this but turn-ing my clients into distribu-tors so they get the 25 percent discount.”

Yet the company is under

attack from the short sellerBill Ackman, whose hedgefund Pershing Square hasplaced a $1bn bet that Herb-alife is in fact an illegal pyr-amid scheme, forcing it tomount a defence of its busi-ness model in New Yorkthis week.

At the heart of that argu-ment is a simple question:where does the money comefrom?

At Herbalife a supervisorcan take a share of everysale made below them inthe network. So the moneyflows upwards and whatHerbalife calls its “Presi-dent’s Club” – the top 0.05per cent of its distributors –earned a median incomebefore expenses of $337,000in 2011, according to thecompany.

This limitless waterfall ofpayments is not inherentlyfraudulent. It doesn’t mat-ter if there are three, five,

seven or more levels ofcommission paid out, saidJoe Marianno, president ofthe Direct Selling Associa-tion. “From the point ofview of the legality or thelegitimacy of the plan thereis no such limitation”.

A pyramid scheme, muchlike a Ponzi scheme, ulti-mately collapses becausethe money must come fromnew recruits, and exponen-tial growth of the sales net-work soon requires largeparts of the population tak-ing part to sustain it.

In the 1970s theFederal Trade Commissionattempted to prosecuteAmway, the first multi-levelmarketing scheme to getnational attention, as a pyr-amid scheme.

However, after a four-year battle a court ruled in1979 that Amway couldtrade under certain condi-tions. “In the end thisambiguous, fateful decisionby one judge allowedAmway to continue operat-

ing,” said Robert Fitz-patrick, author of FalseProfits, and head of a non-profit consumer educationgroup, Pyramid SchemeAlert.

Those conditions, whichlargely concentrate onensuring that there are realcustomers buying the prod-uct and that the emphasisof marketing is on salesrather than recruitment,formed the regulatory basisfor the industry to exist,and Herbalife was formedthe next year.

The FTC declined to com-ment on the allegationsagainst Herbalife.

It may be why Herbalifewas keen to emphasise thisweek that it “has a robustand thriving customerbase”. The central charge ofMr Ackman is that “Herbal-ife is in the business of sell-ing dreams, not weight-management products”.

In Mr Ackman’s analysis,the “substantial majority”of Herbalife distributorslose money after taking intoaccount expenses such asshipping fees, and salesmaterials. It is their moneyflowing up to the top.

To counter that, Herbalifesaid that almost a third ofits sales volume in the US,where Herbalife makes afifth of its $3.9bn in annualsales, is shipped directly tocustomers. The companyalso cited a survey by Lie-berman Research thatfound 5 per cent of Ameri-can adults had purchased aHerbalife product in theprevious three months.

Barclays analysts pre-dicted in a note to clientsthat concern about theHerbalife business modelwould blow over, sayingthat its complexity, andsales base of poor consum-ers largely outside the US,sometimes makes “it diffi-cult for analysts to under-stand the mindset of thetypical distributor”.

Yet the waters are mud-died because the company’sdistributors are hard to dis-tinguish from customerswanting the wholesale rate.Mr Walsh said: “What weknow is over 70 per centbecome distributors toredeem the discount. Maybewe should come up withsome other form of termi-nology.”

Spotlight falls onHerbalife cash sourceHEALTHCARE

News analysisGroup is defendingitself against pyramidselling claims, writeDan McCrum andAlan Rappeport

The waters aremuddied as thegroup’s distributorsare hard todistinguish fromcustomers

Networking and sales are done through nutrition ‘clubs’ that distributors organise Bloomberg

By Miles Johnson in Madridand Anousha Sakouiin London

Iberdrola has scrapped aplan to auction off part ofits Scottish Power divisionafter the Spanish groupdecided it had made betterthan expected progress in aplanned €2bn programme ofasset sales over the pastyear.

Iberdrola was exploring asale of a stake in its UKregulated power business,which houses its electricitydistribution and high volt-age transmission arms. Ithas now put the plan on iceafter recent asset sales,according to two peoplefamiliar with the process.

The Spanish power utilitylast year sold a greater thanexpected €850m of othernon-core assets, including32 wind farms in France for€400m, meaning the need

to sell part of what isregarded as one of the com-pany’s prize assets is nolonger seen as necessary.Iberdrola declined to com-ment.

Iberdrola, which is sellingthe assets as part of a driveto cut net debts of €28.8bn,could choose to reactivatethe plan to sell a stake inthe UK regulated powerbusiness at a later date if itis deemed necessary.

The company’s plan tosell €2bn of non-core assetsby 2014 saw it last year sellassets including stakes inthe American companiesEnergetix and NYSEG Solu-tions to Centrica’s DirectEnergy for $110.2m, and astake in Gas Natural Méx-ico to a subsidiary of Mitsuifor $82m.

Iberdrola is expected toannounce the sale of windassets in Poland, with a saleexpected as soon as thismonth.

The stake in the com-

pany’s UK regulated powerbusiness, which generated€446.3m in earnings beforeinterest taxation, deprecia-tion and amortisation in thefirst half of last year, is notregarded as non-core, withthe company’s managementnot keen on selling revenue-producing assets.

The original plan hadbeen for up to 49 per cent ofthe entity to be sold andsome of the people close tothe situation said the assethad attracted interest.

As it is regulated,the company’s UK distribu-tion and high-voltage trans-mission operations providestable and predictablerevenues and had beenexpected to attract interestfrom passive infrastructurefunds.

As part of its debt-reduc-tion drive, Iberdrola saidinvestment had been cut by67 per cent in the first ninemonths of the year.

It also sold assets worth€300m.

Iberdrola has said it willinvest £12bn in the UK inthe next decade, with two-thirds of the investmentgoing to its electricity net-works business, and muchof the rest to both offshoreand onshore renewableenergy projects.

By Patrick Jenkinsin London

Venn Partners, a London-based financial advisoryboutique, is branching intoreal estate lending in thelatest evidence of the so-called shadow banking mar-ket advancing to take thefield left by the retreat oftraditional lenders.

Venn, a clutch of formerbankers backed by Norwe-gian industrial group SiemIndustries, is setting upVenn Finance, headed byPaul House, the formerhead of European realestate at Citigroup.

The operation is targeting£500m of lending this year,with a focus on the UK andGerman markets.

Banks have left the realestate market over the pastcouple of years, as fundingsources dried up and regu-lators imposed tougher

rules governing the risk-weighting of propertyassets. Those changes, partof the sweep of reforms ush-ered in by the new Basel IIIglobal rule book, push upregulatory capital require-ments significantly.

Last year, a study by DeMontfort University inLeicester found that lessthan half of the bankspolled planned to increaselending to property compa-nies, compared with nearly60 per cent a year earlier.

In 2011, Eurohypo, part ofGermany’s Commerzbank,and France’s Société Géné-rale both said they wouldhalt property lending.

Across Europe, about 90per cent of legacy realestate lending is bankfunded but as it rolls offover the coming yearsmuch of it is expected tomove to other financiers.Nearly three-quarters of the£200bn of UK real estatedebt that sits on balance

sheets of banks must berefinanced by 2016. “Theexistence and scale of theopportunity is highlightedby comparisons with theUS, where only 55 per centof outstanding commercialreal estate loans are esti-mated to be funded bybanks,” Venn said.

So far, much of thereplacement funding hascome from insurers andpension funds, as well asspecialist debt funds. How-ever, there is expected to bea substantial shortfall indebt financing capacity forsome time to come.

Even the most upbeatproperty experts concedethat the combined fundingfrom insurers, pensionfunds and other specialistproviders of lending will bea fraction of the debt moun-tain available from banksbefore the financial crisis.

Venn Partners wasfounded by two bankersfrom Credit Suisse andNomura, and now hasstructured credit specialistsfrom the likes of UBS,JPMorgan, Merrill Lynchand Citigroup. Siem, whichhad a client relationshipwith the founders, is anindustrial conglomeratespanning oil, gas and ship-ping.

Iberdrola halts UK unit stake saleELECTRICITY

Iberdrola plans to invest inits UK electricity networks

Venn strikes out into property loansGENERAL FINANCIAL

Shadow banks are filling thegap left by traditional lenders

JANUARY 14 2013 Section:Companies Time: 13/1/2013 - 19:10 User: hyltonm Page Name: CONEWS1, Part,Page,Edition: ASI, 14, 1

FINANCIAL TIMES MONDAY JANUARY 14 2013 ★ 15

COMPANIES

A combination of multibillion-dollarpenalties and new regulations onmortgage providers are laying thefoundation for the future US housingmarket.

Almost seven years after the peak inhouse prices, 10 lenders last weekagreed to pay more than $8bn in asettlement with federal regulators,part of what they hope will be thefinal bill for loose lending standardsand alleged abuse of the foreclosureprocess.

The Consumer Financial ProtectionBureau also came out with long-awaited rules supposed to preventsuch behaviour in the future.

Together, the moves help reduceuncertainty hanging over the indus-try, potentially easing mortgage origi-nation and attract private capital backinto a market that has been on state-sponsored life support since the finan-cial crisis.

In Des Moines, Iowa, the biggestoperator in the market is digesting thenew rules. Wells Fargo has amassedsuch a large share of new and refi-nanced loans – at times approaching40 per cent, according to Inside Mort-gage Finance, which collates industrydata – that it has worried FederalReserve officials.

“What is striking, is in somerespects the business has gone back tothe basics,” says Mike Heid, thebank’s head of mortgages, from hisunassuming offices.

Speaking before last week’s develop-ments, he notes that the market hasreturned to where it was before 2005,with borrowers required to providedocumentary evidence of their incomein a more bureaucratic and costly, yetsafer, system.

After taking a relatively conserva-tive stance in the 2000s, Wells hasavoided the brunt of the losses andlitigation associated with the mort-gage boom.

That has fallen on Bank of America,still dealing with bad loans written byCountrywide, the Californian-basedmortgage originator, which it acquiredin 2008.

As BofA has dramatically scaledback from the market, burnt by itsprevious experience, Wells has aggres-sively taken the territory. Officialsincluding Bill Dudley, president of theFederal Reserve Bank of New York,have since expressed concern aboutconcentration.

Some of Wells’ competitors professto be concerned too. “When you havethem on 40 per cent market share youknow there’s something amiss in themarket,” says Bill Emerson, chiefexecutive of Quicken Loans.

Quicken is another success story ofthe post-crisis mortgage market andannounced this week that it hadclosed more than $70bn in home loanslast year, more than double the $30bnin 2011.

“You’ve seen a lot of consolidation,”says Mr Emerson. “You’ve seen BofA

team of people that could do 60 loans aday can now do 20 or 15.”

Mr Emerson says: “We’ve doubledthe number of compliance people inorigination in a year.”

Both companies are thriving despiteincreased costs but they both want tosee the rules fleshed out.

Mr Heid says: “There’s no questionthat there’s more regulation across theindustry and there’s no question thatinterpreting all the rules and regula-tions requires a degree of legal exper-tise and technology . . . but the issuethat’s really more impactful is thelevel of uncertainty.”

Last week’s rule from the CFPB –mandated by the Dodd-Frank financialreforms – removes some of the uncer-tainty. It sets the standard for a “qual-ified mortgage”, with a maximumdebt-to-income ratio.

Lenders are not prevented fromoffering loans that do not comply, but,in practice, most loans are expected tobecause qualified loans offer legal pro-tection to originators from the sorts ofrepurchase demands and lawsuits that

have bedevilled the industry since thewave of defaults five years ago.

As the rules emerge, private-labelsecuritisations, which have been mori-bund since the crisis, should start upagain, giving fresh fuel to the market.

And the confidence of banks, andtheir shareholders, should be helped ifthese settlements are indeed amongthe last.

BofA alone this week agreed sepa-rate settlements worth more than$10bn over bad loans it wrote and soldto Fannie Mae, the government-con-trolled mortgage agency, and overclaims it broke rules when processingforeclosures. Optimists hope the bankis close to ridding itself of the legacyof the mortgage crisis.

But Mr Emerson, whose companyavoided the penalties levied on othersfor bad behaviour – “we were defi-nitely smarter and more conserva-tive”, he says – has a word of warningfor the competition: “I’m not surewe’re through the settlement stuff.”

See Lex

Wells Fargo push on loans raises concernsBANKS

News analysisThe US lender avoidedthe bulk of the losses andlitigation that followedthe mortgage boom andhas moved aggressivelyinto the territory, writesTom Braithwaite

FT.COMJPMorgan Chase,Bank of Americaand Citigroup allreport fourth­quarter earningsthis week.www.ft.com/banking

Servicing rights openout to private capitalAlongside the $11.6bn settlementBank of America struck with FannieMae last week came a much lessnoticed announcement from the USbanking group, write Tracy Allowayand Shahien Nasiripour.

BofA said it would sell $306bnworth of mortgage servicing rights, orcontracts that give it the right tocollect payments due on mortgagesin exchange for a small slice of theproceeds.

In the years since the financialcrisis, mortgage servicers have spenta lot more time and money workingwith homeowners to service andsometimes restructure troubledmortgages. BofA is estimated tospend about $12bn a year on itsservicing business, employing 50,000people. That expense, combined withnew capital rules for banks, is nowleading many banking groups toabandon the billions of dollars’ worthof MSRs they still hold.

The BofA deal “signalled the latestturn in the walk of mortgage financetoward some new future, one thatapparently will include a much smallerBank of America and at least a pairof aggressive new servicers,”Deutsche Bank analysts wrote inreaction to the sale.

The sale is expected to unfold inthe coming weeks with $215bn worthof MSRs going to NationstarMortgage, a mortgage lender andservicer owned by private equitygroup Fortress Investment Group. Theremainder will go to WalterInvestment Management.

New bank capital rules, known asBasel III, cap the value of MSRs thatcan be used to satisfy therequirements and penalise financialgroups that hold excess amounts.Regulators have said that MSRs arenot as loss absorbent as traditionaltypes of capital, such as equity.

“The large servicers are constrainedby Basel III,” says Bill Emerson, chiefexecutive of Quicken Loans, a non­bank mortgage lender. “There’s anopportunity for private capital to getinvolved in this space whereas in thepast it might not have been asattractive.”

For the first time, three of the topseven home loan servicers are nownon­banks, according to InsideMortgage Finance. Walter, Nationstarand Ocwen Financial snapped upMSRs from their much larger bankcompetitors to achieve their improvedindustry ranking.

At the same time some mortgagemarket participants see even biggerchanges for the industry ahead. TheUS Federal Housing Finance Agencyis in the midst of developing newstandards for how Fannie Mae andFreddie Mac, the state­controlledmortgage financiers, will pay thecompanies that service the mortgagesthey own or guarantee.

The twin mortgage groups controlabout half of all outstanding US homeloans and the practices they dictategenerally become the marketstandard.

The two­year­old Joint Initiative onMortgage Servicing Compensationseeks to pay servicers forperformance, rather than the currentpractice of fixed fees regardless ofwhether borrowers stay current ontheir obligations.

reducing their footprint and Citi dothe same thing. Wells has grown a lotas a result of that. We have grown as aresult of that.”

Franklin Codel, head of mortgageproduction at Wells, says: “I respect-fully disagree that there’s too muchconcentration. At the point of salewhere consumers make their choiceabout who they’re going to do busi-ness with, nationally Wells Fargo hasa share of 15-16 per cent. Eighty-fiveout of 100 people are doing businesswith somebody else.”

The varying statistics are due to thefact that Wells purchases loans fromother originators.

But for each lender, whatever itsshare, the business has changed, withfar more regulation and expense. “Sixyears ago the amount of time it tookan underwriter to underwrite a filewas different than it is today,” saysMr Codel.

“They didn’t have to verify incomeor employment. Today we’re in a dif-ferent world and they have to verifyand verify extensively. That same

US mortgage originationsQ1-Q3 2012. Figure in bracketsshows market share

The post-crisis mortgage market

$403bn

Wells Fargo

(30%)

US Bancorp

$65bn(5%)

Bank of America

$56bn(4%)

Citigroup

$47bn(4%)

$138bn(10%)

JPMorgan

Source: Inside Mortgage FinanceFT GraphicPhoto: Bloomberg

US originations$tn

1.0

2.0

3.0

11100908072006

By Richard Milne,Nordic Correspondent

Banks should stop compar-ing themselves only withother lenders and shouldseek inspiration from thelikes of retailers and mediacompanies, says one ofEurope’s leading bankers.

Pär Boman, chief execu-tive of Handelsbanken, saidlooking at how clothesretailers, coffee shops andfast-food chains grow hadbeen essential to the Swed-ish bank’s rapid expansionin the UK where on averageit opens a new branch everytwo weeks.

It then studied broadcast-ers around the world afternoting that customers likedreceiving information viavideo clips, and now Han-delsbanken TV has almost100,000 viewers and is oneof the biggest onlinesources of news in Sweden.

“Historically, it was veryimportant to understandwhat the others banks did.It still is but it’s even moreimportant to see how [cus-tomers] look at the bestweb pages they used forother purposes and see ifHandelsbanken is as easy touse as this company or thatcompany, or whatever it is.So the competition today ismuch broader,” Mr Bomantold the Financial Times.

Attention is being heapedupon Handelsbanken as itsconservative financialapproach and old-fashioned

views on banking with localbranches at its heart attractregulators and analysts tothe Swedish group.

It eschewed the govern-ment aid that other bigSwedish lenders took aftergetting into trouble in thethree Baltic countries andinstead decided to expandin the UK, where it hasabout 130 branches. Andrew

Haldane, executive directorof financial stability for theBank of England, haspraised its “back to thefuture” model of bankingwhere credit decisions aretaken locally and the bankpays no bonuses nor hasany budget or sales targets.

Renowned for a strong

internal culture like its fel-low Swedish companiesIkea and Hennes & Mauritz,Handelsbanken is nowaping those groups inexpanding rapidly and glo-bally, last year setting upits first offices in Brazil andAustralia.

“We know how to run abank, and now we haveadded a growth model,which is not typical for thefinancial sector but verysuccessful and well devel-oped in other sectors. Whenyou combine those twothings, you will get theresult we are getting in theUK,” Mr Boman said.

Hundreds of branchesfrom banks such as LloydsBanking Group and RoyalBank of Scotland are cur-rently up for sale in the UK,but Handelsbanken has tra-ditionally favoured organicgrowth.

Handelsbanken TV fea-tures reports on economicmatters such as the Swed-ish economy or mobilephone subscriptions, oftenwithout interviewing bankofficials.

Mr Boman said: “It wasnot the news in itself thatwas important for us. Weonly wanted to understandhow to do the best videoclips. Now we havean opportunity to do some-thing fantastic with thelargest news website inSweden, and we will findsome way to capitaliseon that.”

See Business Life

Handelsbanken growsusing retail blueprintBANKS

More than eight years afterEliot Spitzer claimed con-tingent commissions weretantamount to kickbacks,insurance companies arestill making billions of dol-lars worth of the paymentsto brokers each year.

In spite of growing con-cerns among some under-writers, brokers and corpo-rate insurance buyers, how-ever, there is little sign thatregulators are planning tofollow the former New Yorkattorney-general and launchanother investigation intothe practice at any time inthe near future.

The rules on contingentcommissions – which insur-ers pay to brokers based onvolume or profitability ofbusiness placed with them –vary by jurisdiction.

In New York and London,such payments are notbanned although brokersare required to make cer-tain disclosures to clients.

Critics argue the disclo-sure requirements are inad-equate. All three of theworld’s big insurance bro-kers decline to say publiclyhow much they receive incontingent commissions.

“There are few specificrules – and little active reg-ulation,” says Bruce Hep-burn, chief executive ofMactavish, the UK insur-ance governance boutique.

David Gittings, chief exec-utive of the Lloyd’s MarketAssociation, which repre-sents underwriters at thehistoric insurance market,says: “I feel now that thereshould be an absolute obli-gation on full disclosureand transparency so thateverybody knows who ispaying what to whom andwhat for. That needs tocome out of the regulator.”

Commissions of one kindor another have been cen-tral to insurance brokers’business models for dec-ades. Indeed, Mr Spitzer’sinquiry focused on the dom-inance of the big brokers asmuch as contingent com-missions in particular.

In lines of insurance thatare entirely commission-based, there is little poten-tial for conflicts of interest.“That’s no different frombuying a car from a sales-man – you can always go tosomeone else,” as Mr Hep-burn puts it.

He says problems arisewhen brokers are paid flatfees by their clients – lead-ing policyholders to expectthe brokers to act on theirbehalf – while at the sametime being paid by theinsurance companies.

He says contingent com-missions – “a paymentbased on an outcome that isfavourable to the insurer” –are especially problematic.

“It’s just not right,” saysJoe Plumeri, chairman ofWillis, the world’s third-biggest insurance broker bymost measures, who hascriticised the paymentsbefore.

But he adds: “Clientsdon’t seem to mind, eitherbecause they don’t under-stand or . . . [they say] ‘Mybroker’s been with me solong; his company makeshim do it, so it’s not him.’There’s some rationale thatI [the client] always get fedfor doing business.”

John Hurrell, chief execu-tive of Airmic, an associa-tion of UK corporate riskmanagers that comprises450 of Britain’s biggest com-panies, says the prevalenceof contingent commissionsis between “non-existentand minuscule” at his endof the market.

“We go back to our mem-bers twice a year aboutwhat’s going on in the mar-ket place and there is ahigh satisfaction level,” hesays.

Mr Hurrell suspects thepayments may be morewidespread in the middle orsmall commercial insurancemarket, where policy hold-ers are perhaps less savvyand have less frequent deal-ings with brokers.

According to data fromAM Best, the specialistinsurance rating agency, USproperty and casualtyinsurers paid $2.65bn to bro-kers in “direct contingentcommission” in 2011.

However, this accountedfor only about 0.6 per centof their net written pre-mium in 2011 and is downfrom 1.1 per cent in 2004.

Still, the total fees thatinsurers pay to brokers hasremained static at about 10per cent of net written pre-miums during the period.

Sean McGovern, director,North America, GeneralCounsel and Risk Manage-ment at Lloyd’s of London,says: “There’s clearly a riskthat contingent commis-sions could create thewrong kinds of incentivesand that is an issue in theUK given the new Briberyact.

“We would not want tosee the growth of contin-gents or other types ofremuneration arrangementsin our market.”

www.ft.com/insurance

Increased calls for disclosure ofinsurance brokers’ commissionsINSURANCE

News analysisCritics argue thatcontingent feesare particularlyproblematic, writesAlistair Gray

Pär Boman: bank’s TVchannel is big opportunity

Joe Plumeri has criticisedthe payments before

More news atFT.com●Exillon reshuffle urgedExillon Energy, theLondon­listed Russian oilproducer, this weekendsuffered another setbackas one of its shareholderscalled for an extraordinarymeeting and a significantreshuffle of its board.Swiss­based WorldviewCapital Management,which owns about 13 percent of Exillon, wants toreplace the oil company’schairman followingdisappointing oilproduction, a FinancialServices Authority finebecause of poorgovernance and a 60 percent drop in thecompany’s share priceover the past 18 months.www.ft.com/energy

●CWC marks end of eraCable & WirelessCommunications hascompleted the $750m saleof a controlling stake inMacau’s largest telecomsgroup to Citic TelecomInternational, part of theChinese state­controlledindustrial group.

Citic will take almost fullownership of the Macaugroup, having also agreedto acquire the 28 per centstake held by PortugalTelecom. It already owneda 20 per cent stake inCTM, Macau’s only fixed­line provider and leadingmobile phone group.

Cable & WirelessCommunications (CWC)said the deal marked theend of a corporaterestructuring that hasfocused its business onthe Caribbean and CentralAmerica.www.ft.com/telecoms

‘We have added agrowth model,which is nottypical for thefinancial sector’

For eachlender,whatever itsshare, thebusiness haschanged,with farmoreregulationand expense

JANUARY 14 2013 Section:Companies Time: 13/1/2013 - 19:22 User: hyltonm Page Name: CONEWS2, Part,Page,Edition: ASI, 15, 1

16 ★ FINANCIAL TIMES MONDAY JANUARY 14 2013

COMPANIES

This week’s Detroit carshow is expected to producea new high-water mark inefforts to make Americanslove international vehicledesigns, analysts and execu-tives have predicted, asmanufacturers importdesigns from strugglingEuropean markets.

Among the vehicles to beunveiled at the show, whichopens to the media today,will be new models in theFiat 500 range that was oneof the big successes of lastyear’s US car market.

Chrysler, which Fiat con-trols, will also show a newversion of its Dodge Dart,based on the Alfa RomeoGiulietta. Ford will intro-duce a number of light com-mercial vehicles based onits European Transit vans.

The high number of inter-national vehicles reflectsboth the growing US mar-ket for smaller, European-style cars and carmakers’efforts to cut developmentcosts by building severalmodels on a single basic setof components, or platform.

Dan Akerson, chief execu-tive of General Motors, saidthe company was seeking toget on to global platforms“as much as possible and asquickly as possible”. Whilenot launching any newinternational cars for theUS market at the show,GM’s Chevrolet brand willshow its Malibu, Sonic,Spark and Cruze modelsbased on international plat-forms, while Buick willshow the Encore.

“I constantly remindmyself and the team thatwe have to think globally,not eye it through the spec-trum of a North Americanoverlay,” Mr Akerson said.

Bill Visnic, a senior editorfor Edmunds.com, the carinformation site, said differ-ent carmakers were takingdifferent approaches to tryto homogenise their prod-ucts.

But he went on: “They’reall under way with fairlyaggressive global strategies

to reduce the number ofplatforms.”

Ford said that 87 per centof the vehicles it sold glo-bally were now based onone of a small number ofglobal platforms. Many ofthe passenger cars it sells inthe US – including itsFusion sedan and the Fiestacompact car – are barelydistinguishable from theircounterparts elsewhere inthe world.

The Transit van willreplace Ford’s E seriesNorth American vans in itsline-up, while the TransitConnect light commercialvehicle fills a niche that haspreviously barely existed inNorth America.

Chris Preuss, a productspokesman for Ford, saidthe company’s platformswere flexible enough for

some regional variations tobe built in as required.“You’ll see us doing morecommon volume going for-ward,” he said.

The better economics ofintroducing new productsbased on common, globalplatforms had helped car-makers to withstand someeffects of slumping Euro-pean car demand, Mr Visnicsaid.

Sluggish growth inChina’s vehicle sales andthe declines under way inEurope mean that thisyear’s Detroit show will beparticularly important forEuropean and Asian car-makers. The US, where 2012vehicle sales were 13 percent up on 2011’s, is cur-rently much the fastest-growing big car market inthe world.

Yet, while carmakersremain keen to make themost of the growing seg-ments of the US marketthat welcome European and

Asian vehicles, the showwill still retain some dis-tinctively North Americanelements.

Tony Cervone, a spokes-man for the US arm of Ger-many’s Volkswagen, one ofthe pioneers of the globalplatform trend, said itwould be showing a concept

for a seven-passenger sportutility vehicle designed spe-cifically for the US market.

“The challenge hasalways been, ‘Can you dif-ferentiate enough while stillleveraging enough valuefrom the common platformto create the true efficien-cies from a cost of capitalstandpoint?’” Mr Cervonesaid.

The continuing role ofsome distinctively Ameri-can vehicles will be evenclearer in General Motors’product launches. In spiteof the company’s enthusias-tic embrace of common,international platforms formany passenger cars, it willstage a high-profile launchat the Detroit show for thenew Chevrolet Silverado, apick-up truck meant to chal-lenge Ford’s long popular

F150. Pick-up trucks, whichbarely feature in the Euro-pean and Asian marketsaccounted for about 11 percent of US light vehiclesales in 2012.

Mr Akerson, meanwhiledid little to conceal hisexcitement over the show’shighest-profile launch – anew version of the Chevro-let Corvette sports car thatGM first launched 50 yearsago. Although the vehicle islikely to be only a modestseller, analysts expect thenew version to be a power-ful advertisement to theAmerican public of GM’srecovery following its 2009bankruptcy.

“The C7 Corvette is, Ithink, one of the most beau-tiful cars that this companyhas ever made,” Mr Aker-son said.

Detroit adopts an international f lavourCARS

News analysis

Carmakers areusing aggressiveglobal strategies tohomogenise theirproducts, saysRobert Wright

Fiat will be unveiling new models in the 500 range that was one of the big successes of last year’s US car market Bloomberg

With 2012 vehiclesales up 13%, theUS is the world’sfastest-growingbig car market

By Carola Hoyos in London

Jaguar Land Rover soldmore cars last year thanever before as China over-took the UK as its largestmarket.

The UK-based carmaker,which is owned by TataMotors of India, sold 357,773vehicles, an increase of30 per cent – nearly doublethe growth it achieved theprevious year. In Chinasales grew 71 per cent,slightly less than in the pre-vious two years.

The company, which hasbeen on a two-year recruit-ing drive to hire 8,000 newpeople globally, also said itplanned to add 800 new jobsat its manufacturing site inSolihull, in the West Mid-lands, where it recentlyconfirmed a £370m invest-ment programme.

The jobs increase standsin stark contrast to Honda,which last week announcedit would cut 800 UK produc-tion jobs because of lowdemand.

Unlike Honda, LandRover Jaguar generallysells luxury cars. But thereis a second important differ-ence between the two.

Jaguar Land Rover sellsthe cars it produces in theUK to markets across theworld, including the US andAsia, where demand forcars has been far morerobust than in Europe, thedestination for two out ofevery three UK-madeHondas.

Nevertheless, JaguarLand Rover has managed to

buck the economic down-turn in much of the west,noting that its sales hadgrown in all regions, withLand Rover in the UKreaching record numbersand boosting sales 24 percent.

The group’s successreflected the popularity ofsport utility vehicles andthe robustness of theluxury market.

Land Rover sales were303,926, up 36 per cent,with China, the UK, theUS, Russia and Italyaccounting for 65 per centof the total, while Jaguarsold 53,847 vehicles, up6 per cent.

Phil Popham, JaguarLand Rover’s director ofgroup sales operations said:“All of our key markets sawstrong progress, withdemand for our premiumvehicles setting new recordsin a very competitive envi-ronment.

“Looking ahead to 2013,we are continuing to investin our business to supportour ambitious plans forgrowth and we will beintroducing eight new orrefreshed products through-out the year,” he said.

Rolls-Royce, the Britishluxury car icon now madeby Germany’s BMW, alsosold a record number ofcars last year, although at1 per cent its growth wasflatter than in the previoustwo years.

Jaguar Land Rover lastyear agreed a joint venturewith Chery, the Chinesecarmaker, to make Jaguarsand Land Rovers in China.

China is the key growthmarket for the automobileindustry, which this weekwill promote its latestwares in Detroit, the heartof the US’s motor industry.

www.ft.com/autos

Jaguarjobs boostas Chinasales soarCARS

Increase of 30%in vehicle sales

Solihull site to add800 more positions

By Gregory Meyerin New York

The abnormal weather inthe US that has hurt busi-nesses from natural gasdrillers to cattle ranchers isnow bringing pain to roadsalt miners.

Another warm, dry win-ter is crushing sales of ice-melting crystals for the sec-

ond year in a row for thebig three suppliers –Cargill, Compass Mineralsand Morton Salt, a unit ofGermany’s K+S.

Last month was the 10thwarmest December onrecord in the US, accordingto the National ClimaticData Center. While somebig storms blanketed thecentral US late in themonth, they ended whathad been a record-long

snowless streak for citiesincluding Chicago, Omahaand Milwaukee.

“Snow events” in Com-pass’s main markets were22 per cent below averagein the fourth quarter of2012, it said last week. Thisfollowed a 2011-12 winterseason that was, in thewords of the climatic cen-tre, “nearly non-existent formuch of the eastern half ofthe nation.”

Last year’s mild winterleft domed storage build-ings brimming with saltstocks alongside US high-ways. In Illinois the statetransportation departmentsaid it began this winterwith 600,000 short tons ofsalt on hand. A year beforeit was 400,000.

Compass’s highway saltsales, down 23 per cent byweight last winter, havefallen another 17 per cent so

far this winter. “We’rehopeful that we will beginto see more typicalweather,” Rodney Under-down, chief financial officerof the New York-listed com-pany, said in a statement.

Cargill, one of the world’slargest privately held com-panies, said demand hadweakened 30 per cent fromlast winter after customersgrappled with a “storagecrisis” of extra stocks.

Compass’s recent encoun-ters with unfavourableweather began when a tor-nado struck its Canadiansalt mine in August 2011,killing an employee anddamaging equipment. Thecompany last winter sold5.8m tons of highway salt,down from an average 7.6m.

Angelo Brisimitzakis,then-Compass chief execu-tive, was still optimisticabout the impending winter

in a late October 2012 earn-ings call with analysts. Hespoke as superstorm Sandyneared the US east coast.“Hopefully, everyone’ll staysafe. However, if a little bitof early gentle snow were toshow up somewhere in ourservice area, that would befine with us,” he said.

Most customers are gov-ernments, and salt procure-ment terms are usuallyagreed once a year before

winter arrives. This pre-vents price swings. Industryexecutives say prices aredown about 2-5 per centfrom last year to averageabout $55 a ton but varywidely by delivery location.

Sales volumes have plum-meted, however. Despiteslight price declines the Illi-nois Department of Trans-portation has cut salt costsby half with smaller pur-chases, it said.

Lack of snow and mild US winter melts hopes of salt suppliersSUPPORT SERVICES

Royal Dutch Shell’s cam-paign to explore for oil inthe Arctic is lookingincreasingly forlorn. Lastmonth, its drilling rig ranaground on an island offthe south coast of Alaska,the latest in a string of set-backs. The US interiordepartment has nowlaunched a review of Shell’swhole Arctic programme.

Yet at least it has starteddrilling. The same cannotbe said for oil companieswith licences in other partsof the Arctic, such as Can-ada’s Beaufort Sea. There,despite spending billions ofdollars on deepwaterlicences, not a single opera-tor has so far gained per-mission to drill.

The reason, industryinsiders say, is the toughrules imposed by Canada’sfederal regulator, theNational Energy Board. TheNEB says this is the pricecompanies must pay forworking in such an environ-mentally sensitive area. Oilindustry figures argue the

rules are so onerous that atthis rate, the Beaufort’s oilwill never see the light ofday.

“Most of the operatorshave said they don’t makesense,” says one oil com-pany executive of the regu-lations.

The Arctic containsslightly more than a fifth ofthe world’s undiscovered,recoverable oil and gasresources, according to theUS Geological Survey. But ahostile climate and impene-trable sea ice have longplaced it out of the oilmajors’ reach.

Now global warming andthe melting of the polar ice

cap are removing some ofthe obstacles to exploration,prompting a new gold rushas companies snap uplicences from Greenland tothe Chukchi Sea.

The Canadian BeaufortSea, which could contain asmuch as 5bn barrels of oilequivalent, according toenergy consultancy WoodMackenzie, was initiallyone of the region’s biggestdraws. In 2008, BP spent$1.2bn to buy about 6,000square kilometres there.

But the age of such eye-

watering bids is over. In thelatest auction, last Septem-ber, the winner was Frank-lin Petroleum, a tiny outfitbased in a village nearOxford that secured rightsto more than 9,000 sq kmfor just C$7.5m ($7.6m).

That paltry sum speaksvolumes about the Beau-fort’s declining appeal,amid a tough approachfrom regulators and a newrealism about the techno-logical challenges and exor-bitant costs facing oilexplorers in its freezingwaters. “Progress with get-ting sanction for explora-tion drilling is slow,” saysAndrew Latham of WoodMackenzie. “Everyone’sbeing very careful.”

The slow pace is partlydue to a significant reviewof Arctic offshore drillingcarried out by the NEB,which was expanded in thewake of BP’s 2010 Deepwa-ter Horizon disaster and ledto a hiatus in new approv-als.

The review reaffirmed akey requirement on oil com-panies known as the “sameseason relief well” or SSRWpolicy. Relief wells aredrilled deep underground tointersect with wells thathave suffered a blowout. Itwas this technique thatfinally subdued BP’s out-of-control Macondo well in theGulf of Mexico in 2010. TheNEB’s policy, which was

first adopted in the 1970s,requires assurances thatrelief wells can be com-pleted during the samework season as any blow-outs.

The rule was easy toadhere to in northern Can-ada’s 1970s oil boom whendrilling was limited to shal-low coastal areas. But nowoil companies are venturinginto the much deeperwaters of Beaufort’s“Slope”, where drifting floesof thick ice formed overmultiple winters are a con-stant hazard. Such obsta-cles can cut the drilling sea-son to just 100 days, mean-ing a typical well can takethree summers to complete.

Company officials saythat if a blowout were tooccur in the middle of sucha short drilling window,they would not have time todrill a relief well before thesea ice returned. “So youwould effectively have tostart drilling your reliefwell at the same time asyour primary well,” saysthe oil company executive.“That doubles your risk.”

During the review, com-panies argued the oldrequirement be replaced bya “goal-oriented” approachthat sets a target of zero oilspills and lets the operatorswork out how they will hitit. Chevron has proposed anew kind of safety package,known as the Alternative

Well Kill System, or AWKS,which is based on anenhanced blowout pre-venter – a stack of valvesthat sits on the seabed andis the last line of defencewhen a well blows out.

Environmentalists rejectthe oil companies’ argu-ments. “The SSRW capabil-ity is a key fundamentalsafeguard,” says LouiePorta, policy director of thePew Environment Group’sOceans North Canada pro-gramme. “If oil companiessay they can’t do it, I’d tellthem to come up withanother idea that wouldalso kill a well in a singleseason.”

The NEB did provide onepotential way out. Appli-cants could depart from therelief well requirement ifthey could “demonstratehow they would meet orexceed the intended out-come of our policy”. Itwould be up to the NEB todetermine which tools beingoffered were appropriate,“on a case-by-case basis”.

But that loophole has notprovided the comfort com-panies were hoping for, andnone of them has so farstepped forward to startwork in the Beaufort. Regu-lators say there are “cur-rently no applications foroffshore drilling before theNEB”. The stand-off makesShell’s progress in Alaskalook a lot less glacial.

Arctic exploration moves at a glacial pace for frustrated oil majorsOIL & GAS

News analysis

Environmental,regulatory andlogistical issues areslowing progress,writes Guy Chazan

CA RCT I CRCO C E A NC E A

Niglintgagaga

A rc t i c C i rc l e

ANADAAACANAANACA

The ArcticArctic oil resources

Source: Wood Mackenzie

Risked yet-to-find resources in offshore Arcticto 2030 (billion barrels of oil equivalent )

Norway Russia

US West Greenland Canada

0-5

Morethan 10

5-10

1-5 1-5

Region’s prospects have brought cold comfort

Arctic oil has failed to live upto its initial promise, writesGuy Chazan.

Some parts have provedhighly prospective. Norway’sStatoil and its partners havemade big oil discoveries inthe Barents Sea. Hopes offinding oil in Russia’s KaraSea, which many peoplebelieve to have the mosthydrocarbon potential in theregion, soared last yearwhen Rosneft signed a bigexploration deal with UScompany ExxonMobil.

But there have beensetbacks too. UK-listedCairn Energy has failed tofind commercial volumes of

oil off Greenland, despitespending $1bn on its efforts.In the US, Royal Dutch Shellhas invested more than$4.5bn in preparations todrill for oil offshore inAlaska, but has been besetby technical problems. Thathas led to a scaling down ofexpectations.

Oil consultancy WoodMackenzie sees the offshoreArctic region producing just1m barrels a day by the endof this decade – less than1 per cent of current globaloil supply. “In terms ofpotential new sources ofsupply, there are areas thatwill grow much more

quickly,” says AndrewLatham, Wood Mackenzie’svice-president of explorationresearch, citing NorthAmerica’s “tight” oilreserves, Brazil’s vast “pre-salt” oilfields and the hugegas discoveries off the coastof east Africa.

Beyond 2030, WoodMackenzie speaks of theregion containing 100bnbarrels of oil equivalent,though three-quarters ofthat could be natural gasrather than oil. But how itwill be extracted – amidrising environmentalopposition and tougheningregulation – is still unclear.

$1.2bnAmount BP paid for 6,000sq km in Beaufort Sea

FINANCIAL TIMES MONDAY JANUARY 14 2013 ★ 17

JANUARY 14 2013 Section:Ad Page Time: 11/1/2013 - 15:28 User: leej Page Name: AD HILTON, Part,Page,Edition: EUR, 17, 1

18 ★ FINANCIAL TIMES MONDAY JANUARY 14 2013

THE WORLD’S LARGEST COMPANIES

Celgene 96.30 14.21 17.3Infosys 2,712.6 364.30 15.5SocGen 32.90 3.57 12.2Unicred 4.28 0.39 9.9AstellasPh 4,420.0 390.00 9.7LlydsBkg 54.04 4.18 8.4Barclays 299.65 22.95 8.3Millea Hld 2,687.0 205.00 8.3JiangsuYB 100.44 7.43 8.0RBS 360.40 26.60 8.0IntSPaolo 1.49 0.11 7.9UBS 15.85 1.13 7.7Bank VTB 0.06 0.00 7.5Takeda Ph 4,270.0 295.00 7.4SbankR 99.56 6.62 7.1Deut Bank 37.26 2.47 7.1Hew-Pack 16.16 1.02 6.7FastRetail 23,640 1,440.0 6.5AlRahji Bk 71.00 4.25 6.4CredSuisse 25.10 1.43 6.0

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Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in US Dollar Based on the FT Global Equity Index Series

Celgene CorpShare price ($)

Dec 11 2012/13 Jan 11

Astra Int 7,300.0 -550.00 -7.0Tullow 1,186.0 -89.00 -7.0HindUnlvr 498.50 -35.25 -6.6FresMedC 48.21 -3.41 -6.6CNOOC 16.22 -1.12 -6.5RWE 29.98 -1.92 -6.0Larsen&T 1,531.5 -96.25 -5.9UnibailR 175.25 -10.95 -5.9Vodacom 122.00 -758.00 -5.8Fanuc 15,630 -910.00 -5.5EDF 13.66 -0.78 -5.4Fresnius 81.91 -4.51 -5.2Saic Motor 16.70 -0.89 -5.1FirstEgy 39.89 -2.12 -5.0StGobn 31.72 -1.69 -5.0Newcrest Mg 21.75 -1.09 -4.8SiamComBk 175.50 -8.50 -4.6ChShenEgy 33.25 -1.55 -4.5JardnMt 60.90 -2.60 -4.1RioTinto 3,468.0 -145.00 -4.0

Astra International

Dec 11 2012/13 Jan 11

MitsubEst 32,840 30.9Millea Hld 23,212 28.1Mizuho Fin 45,711 28.0MitsubTk 76,133 27.1HondaMtr 68,732 24.6SumitomoF 52,860 24.3Komatsu 25,715 24.1Citic Sec 2,885 22.3FordMtr 52,385 21.8Unicred 33,025 21.5

UnlvrIndo 16,868 -17.9Kia Motors 20,639 -13.8HyundMobis 23,812 -12.5TevaPha 36,757 -10.8FresMedC 19,443 -10.7Fresnillo 20,155 -10.7ITC 39,327 -9.9HyundaiMot 43,024 -9.8Newcrest Mg 17,574 -9.8HindUnlvr 19,670 -8.4

Mitsubishi EstShare price (¥)

Dec 11 2012/13 Jan 11

Denmark ................................................ 4.26UAE ....................................................... 4.20Austria ................................................... 4.16Spain ..................................................... 3.63Israel ..................................................... 3.62Italy ....................................................... 3.19Chile ...................................................... 3.06Switzerland ............................................ 2.50Finland .................................................. 2.49Hungary ................................................. 2.21

Poland .................................................. -0.64India ..................................................... -0.65Thailand ................................................ -0.72Middle East Africa ................................... -0.81Egypt .................................................... -1.04Korea.................................................... -1.04Brazil .................................................... -1.32South Africa ........................................... -1.66Indonesia .............................................. -2.91Czech Rep ............................................. -3.01

Alternative Energy ................................. 10.20Forestry & Paper ...................................... 3.19Pharmaceuticals & Biotechnology .............. 2.42Real Estate Investment & Services .............. 2.37General Financial ..................................... 2.13Oil Equipment & Services .......................... 2.11Health Care Equipment & Services.............. 2.09Banks .................................................... 2.00Support Services ..................................... 1.96Industrial Transportation ........................... 1.78

Software & Computer Services.................. -0.01Personal Goods ...................................... -0.27Industrial Metals ..................................... -0.35Beverages ............................................. -0.40Gas Water & Multiutilities ......................... -0.60Electricity .............................................. -0.60Construction & Materials ......................... -0.74Leisure Goods ........................................ -0.98Technology Hardware & Equipment ........... -1.24Mining .................................................. -1.54

BOTTOM 20 BIGGEST FALLER PERFORMANCE-MONTH PERFORMANCE-WEEK

Equity Markets: winners and losers by company, market capitalisation, country and sector

3M . . . . . . . . .96.28 0.9 96.98 81.99 2.45 15.40 67477ABB . . . . . . . . 19.63 1.0 20.20 14.45 3.31 16.36 49806AbbottLb . 33.37xa 0.9 34.67 25.82 5.00 8.11 52747Accenture . .69.88 1.0 71.58 51.51 2.13 17.76 48636Ace . . . . . . . . .82.76 0.5 82.79 68.53 1.98 10.53 28123AdvInfoSv . . . 201 -2.0 227 143.50 5.05 19.86 19736AEP . . . . . . . .43.24 -0.7 45.40 36.98 4.35 14.49 20971Afl ac . . . . . . .52.93 1.7 54.93 38.14 2.53 8.77 24819AgricBkCh . . . 3.97 0.5 4.05 2.72 4.13 7.31 15743AIA . . . . . . . . .29.95 -3.1 31.90 23.55 1.15 26.65 46533AirLiquide . .92.70 -2.9 100 83.65 2.45 18.32 38625Alexion . . . .100.39 2.8 119.54 73.04 - - 19504Allergan . . . 103.19 5.4 104.12 81.28 0.19 30.09 31735Allianz . . . . .105.60 -2.4 108.65 68.50 4.26 10.75 64258Allstate . . . . 42.96 1.8 43 27.93 2.05 8.12 20697AlRahji Bk . . . . .71 6.4 83.25 61 4.58 13.52 28396Altria . . . . . . .32.93 1.2 36.29 28 5.16 17.15 66687Amazon . . . 267.94 3.4 269.50 172 - - 121366Ambev . . . . . 87xd 0.7 90 62.14 1.90 32.72 58602AmerExpr 61.24xd 2.7 61.97 48.13 1.31 14.18 68531AmerIntGrp 35.23 -2.9 37.66 23.50 23.84 2.43 52010AmerMvl . . . 15.54 0.7 18.72 14.70 1.29 12.91 63469AmerTower . 78.78 2.2 79.05 60.02 1.59 44.62 31146Amgen . . . . .86.96 -2.3 90.81 63.30 1.78 15.55 66729Anadarko . . . 77.84 -0.5 88.68 56.42 0.46 21.49 38901AnBshInBv .65.66 -2.9 71.05 46.10 1.83 18.39 140800AngloAmer .2.04k 2.0 2.96k 1.66k 2.63 9.89 45797Antofagasta . 1.3k -3.0 1.4k 972 2.12 13.99 20712ANZ . . . . . . . .25.25 - 27.63 20.26 8.20 11.83 73083Apache . . . . .80.57 -3.2 112.08 74.50 0.84 12.89 31526Apple . . . . . 520.30 -1.3 705.07 418.66 1.02 11.78 489442ArcelorMit . . 13.08 -3.2 17.96 10.60 1.15 - 27237ArcherDan . .28.34 -3.0 33.98 24.38 2.47 19.86 18664ASML Hld . . 48.98 -1.6 50.82 33.03 25.56 11.82 27442AstellasPh . .4.42k 9.7 4.43k 3k 2.94 21.11 23220Astra Int . . . . . 7.3k -7.0 8.3k 6.12k 2.79 15.54 30673AstraZen . . .3.02k 0.6 3.12k 2.58k 6.51 8.36 60670AT&T . . . . . 34.27xd -2.7 38.58 29.02 5.16 44.46 194654AtlasCpcoA 180.50 -1.7 184 134.40 2.77 15.78 23411AutomData .59.42 0.5 60 50.89 2.73 21.03 28847AXA . . . . . . . . 13.76 -0.8 13.95 8.65 5.02 12.32 43848AxiataGp . . . .6.69 -0.7 6.87 4.65 3.44 23.07 18845BakerHu . . . . 43.01 -1.2 52.96 37.09 1.40 13.69 18909Bank VTB . . . .0.06 7.5 0.07 0.05 1.39 8.33 19802BankAm . . . . 11.63 -4.0 12.20 6.19 0.34 32.52 125349Barclays . . .299.65 8.3 301.75 148.20 2.00 9.46 59150Barrick . . . . . 33.72 -1.2 50.33 31.18 2.19 10.23 34314BASF . . . . . . . . . .71 -2.0 73.41 51.13 3.52 12.96 87031Baxter . . . . . .68.95 0.8 69 48.98 2.28 16.76 37880Bayer . . . . . . . 72.87 - 73.24 47.63 2.26 24.37 80421BB & T . . . . 30.31xd 0.4 34.37 25.82 2.64 11.92 21206BBVA . . . . . . . . 7.73 5.6 7.75 4.31 5.06 26.31 56212BCE . . . . . . 41.95xd -2.7 45.28 39.12 5.29 13.54 33058BcoSantdr . . .6.59 4.1 6.65 3.98 9.70 34.20 90787Beiersdorf . .61.20 -1.1 62.99 42.51 1.14 51.00 20582BerkshrHat 141.53k 0.7 142.05k 114k - 17.55 130104BG . . . . . . . . . 1.05k 1.5 1.55k 991 1.50 16.13 57788BHP Billtn . .36.68 -3.2 38.25 30.09 4.13 12.91 124280BhrtiAirtel .324.70 -0.7 400.90 238.50 0.31 35.21 22505Biogen . . . . 143.79 -1.5 157.18 114.32 - 24.98 34020Bk China . . . .3.65 0.8 3.69 2.73 5.30 6.25 39374BkCentAsia .8.85k -2.2 9.5k 6.75k 1.28 18.86 22420BkMandiri . .8.05k -2.4 8.9k 6k 1.30 13.19 19300BkMontrl . . . 62.18 0.9 62.48 53.15 4.57 10.11 41200BkNvaS . . 57.61xd - 58.73 50.26 3.89 11.04 69518

BkNYMeln . . 26.78 -1.9 27.31 19.31 1.94 13.92 31295BkofComm . . 6.10 - 6.55 4.75 2.04 5.30 27551BkRakyat . . . 7.45k 1.4 7.85k 5.15k 1.64 10.10 18884BlackRock . 221.01 1.4 221.26 160.25 2.71 17.10 37469BMW . . . . . . . 73.22 -3.4 76.16 53.16 3.14 10.07 58826BncBrasil . . .25.98 - 29.79 18 9.57 6.37 36546BNP Parib . .45.87 3.3 46.56 24.54 2.62 8.43 76048BOC Hold . . .24.95 0.4 25.20 18.20 4.42 13.41 34030Boeing . . . . . 75.16 -3.3 78.01 66.84 2.40 13.26 56676BP . . . . . . . . .461.95 1.9 554 359.90 4.62 7.16 142558Bradesco . 37.27xd -0.5 38.15 26.60 3.18 12.68 34990BrAmTob . . . 3.15k -0.9 3.51k 2.88k 4.15 18.12 97951Bridgestne . . 2.4k 0.3 2.43k 1.6k 1.17 11.34 21888BrisMySq . 34.13xd 2.3 36.34 30.64 4.01 31.19 56338Brookfi eld . .36.92 -0.4 37.51 28.09 1.49 17.91 23440BSkyB . . . . 780.50 -0.9 797.50 628.76 3.25 14.91 20382BT . . . . . . . . . 246xd 1.3 248.22 195.60 3.54 8.97 31228CanImp. . . 81.89xd 0.9 82.61 69.13 4.49 10.43 33605CanNatRs . .29.80 -1.2 41.12 25.58 1.41 13.83 33083CanNatRy . .92.76 2.4 93.12 74.50 1.62 15.38 40406Canon . . . . . . 3.37k -1.5 4k 2.3k 3.56 19.21 50458CapOne . . . . 61.99 - 62.87 44.31 0.32 10.14 36059Carnival . . . . 37.03 -0.1 39.95 28.76 4.05 22.23 22014Caterpillar . . 95.19 0.3 116.95 78.25 2.12 9.75 62248CBS . . . . . . . .38.57 -0.2 39.74 27.44 1.14 16.64 22840Celgene . . . 96.30 17.3 96.33 58.53 - 26.72 40734CenovusE . .33.53 -0.7 39.64 30.09 2.62 18.45 25733Centrica . . 335.90 -1.5 344.10 280 4.68 15.34 28158CenturyLk . .40.32 1.0 43.43 36.32 7.19 38.43 25170Cez . . . . . . . .655.10 -3.7 845.90 616 6.87 7.20 18353ChConstBk . .6.46 -0.6 6.62 4.71 4.57 6.92 200353ChevrnTx . . .111.73 1.1 118.50 95.74 3.14 9.16 218676ChinaCitic . . .4.95 3.1 5.15 3.50 3.65 5.63 9503ChinaLife . . . . . 26 -3.7 27.25 17 1.10 40.12 24958ChinaMBank 17.56 -1.2 18.30 12.02 2.98 7.59 8858ChinaMob . .89.85 -0.9 92.60 74.80 3.76 11.65 232980ChinaPcIns . 31.10 0.6 31.75 20.80 1.40 42.66 11134ChMinsheng . 9.47 -0.6 9.83 5.35 5.93 5.97 7059ChnghwTl . 94.20 0.3 99.50 87.50 5.80 17.84 25240ChngKong .125.90 4.1 127.20 86 2.51 10.32 37618ChristianDior 130 -2.7 134.40 92.60 2.10 18.20 31529ChShenEgy .33.25 -4.5 36.45 24.15 3.38 10.96 14578Chubb . . . . . . 77.78 -0.4 81.80 66.66 2.11 11.29 20374ChUncHK . . . 13.02 1.9 16.88 9.45 0.96 50.27 39580CIMB Grp . . . . 7.66 0.1 7.96 6.85 1.96 12.96 18850Cisco . . . . . . .20.48 - 21.30 14.96 2.15 13.20 108733Citic Sec. . . . 18.98 -3.2 21.15 12.36 - 18.94 2885Citigroup . . .42.34 -0.2 43.24 24.61 0.09 17.78 124163CLP . . . . . . . .65.05 -0.2 69 62.10 3.92 22.87 21201CME Grp .54.02xa 0.5 59.42 43.35 6.83 12.15 18009CmwBkAu . . 61.38 -3.0 63.70 47.50 7.77 13.67 104200CNOOC . . . . . 16.22 -6.5 18.20 13.18 2.65 9.45 93419CntJpRwy 7.26kxa 2.3 7.29k 6.1k 1.38 7.71 16789Coca-Cola 36.91xc -2.0 40.66 33.29 2.76 19.27 165547Cognizant . . 78.47 4.4 78.57 53.92 - 23.79 23556ColgtPlm . . 107.09 -0.8 110.95 87.22 2.32 20.98 50598Comcast .38.46xd 1.0 38.76 24.85 1.69 17.53 81493Compass . . 747.50 0.8 750.50 587 2.85 22.74 22159ConocPhil . .58.27 -2.6 59.90 50.63 4.53 10.48 70734Continental .85.06 -4.0 89.98 53.13 1.76 9.44 22705Copec . . . . . . . 7.1k 0.6 8.34k 4.65k 1.48 - 19526Corning . . . . 12.45 -2.2 14.62 10.62 2.53 9.81 18399Costco . . . .100.28 -1.8 103.02 73.60 8.04 24.38 43686Covidien . . . . 60.16 2.5 60.80 44.89 1.61 15.37 28479CredSuisse . 25.10 6.0 27.53 15.97 2.99 - 36319

CrownCstl . . 72.78 -1.0 75.10 44.92 - - 21336CSL . . . . . . . . 51.95 -1.2 55.20 29.61 1.60 27.45 27335CSX . . . . . . . .20.54 -1.9 23.71 18.88 2.63 11.48 21185Cummins . . 110.59 -2.9 129.51 82.20 1.63 11.55 21019CVS . . . . . . . . 51.30 2.6 51.38 41.23 1.39 17.23 63955Daimler. . . . .43.09 1.1 48.95 32.86 5.11 8.24 61384Danaher . . . . 59.78 2.9 60.50 47.91 0.17 19.06 41409Danone . . . . .49.60 -0.8 54.96 45.61 2.80 17.66 42574DBS . . . . . . . . 14.70 -1.5 14.99 11.67 3.81 10.58 29305Deere. . . . .89.62xd 1.1 90.64 69.51 2.05 11.74 34761Denso . . . . . . 3.18k 3.1 3.2k 2.05k 1.57 20.37 31560Deut Bank . . 37.26 7.1 39.51 22.11 2.01 11.83 46214Deut Tlkm . . .9.02 1.7 10.06 7.69 7.76 - 52043DeutsPost . . 16.96 0.9 17.07 12.07 4.13 41.35 27357DevonEngy .54.26 -0.6 76.33 50.89 1.47 32.16 21975Diageo . . . . . 1.79k -2.0 1.89k 1.23k 2.43 24.09 72335DirectTV . . . .52.40 2.5 55.17 41.92 - 12.87 31657Disney . . . . . .50.58 -3.1 53.40 38.02 1.48 16.18 89634DNB . . . . . . . . 73.55 0.8 75.30 53 2.72 8.65 21690DominRes . .52.43 -2.1 55.62 48.87 4.09 25.36 29964DowChem . .33.86 0.7 36.08 27.45 3.57 26.12 40606DukeEner . 65.69xa 1.0 70.35 59.63 4.64 20.88 46254DuPont . . . . . 46.15 1.0 53.98 41.68 3.68 14.57 43034E.ON . . . . . . . 14.27 -1.7 19.74 13.61 7.71 - 38095EADS . . . . . . 32.30 4.9 32.80 24.26 1.39 17.40 35660EastJpRwy . 5.79k 3.4 5.83k 4.48k 1.99 13.03 25739eBay . . . . . . .53.70 1.7 54.20 29.89 - 18.32 69487Ecolab . . . . . . 72.81 -2.1 74.73 57.98 1.14 37.78 21327EDF . . . . . . . . 13.66 -5.4 19.72 13.39 8.42 7.82 33705EMC . . . . . . . . 24.15 -0.8 30 21.78 - 19.79 50876Emerson . . .55.04 - 55.59 43.59 2.93 20.56 39826Enbridge . . 44.04 2.0 44.06 35.39 2.64 42.60 35830Enel . . . . . . . . .3.26 0.7 3.33 2.02 7.98 8.84 40886ENI . . . . . . . . . 19.33 1.7 19.39 14.94 5.48 9.23 93753EOG Res . . . 125.63 -0.1 126.45 82.49 0.54 28.39 34031Ericsson . . . 66.90 -1.7 69.95 55.90 3.74 16.00 31460Essilr . . . . . . . 75.31 -1.8 78.24 54.97 1.13 28.53 21454Etisalat . . . . . . 9.17 0.9 10.20 8.50 6.54 11.05 -Exelon . . . . . .29.29 -3.2 41.75 28.40 6.67 15.65 25001ExpScripts. .55.60 1.1 66.06 45.93 - 30.55 45392ExxonMb . . . 89.61 0.7 93.60 77.13 2.43 9.46 408563Falabella . . . . . 5.1k 2.0 5.2k 4k 1.03 - 26110Fanuc . . . . . 15.63k -5.5 17.13k 11.24k 1.29 28.36 42024FastRetail .23.64k 6.5 23.65k 13.79k 1.10 28.82 28150Fedex . . . . . . . 97.40 2.6 97.75 83.80 0.56 15.66 30629FEMSA UBD 133.90 3.5 134.40 88.42 1.39 35.35 22889FirstEgy . . . .39.89 -5.0 51.13 39.50 5.52 15.76 16683Firstrand . . . 31.81 0.6 32.40 21.19 3.21 12.32 20482FordMtr . . . . . . .14 3.2 14.07 8.82 1.79 3.17 52385Fortum . . . . . 14.38 -1.4 19.36 12.81 6.95 10.42 17049FranceTele . . . 8.73 2.6 11.96 7.84 15.81 6.24 30865Franklin . . . 135.66 3.2 135.72 92.24 3.02 15.16 28800Freeport . . . . 35xd -1.4 48.96 30.55 3.57 11.36 33226FresMedC . . 48.21 -6.6 60.27 47.79 1.43 35.19 19443Fresnillo . . . . 1.74k -3.7 2.03k 1.26k 3.85 25.81 20155Fresnius . . . . 81.91 -5.2 96.93 68.60 1.16 15.63 19471GazProm . . 147.97 3.0 200.80 136.50 6.06 3.24 115326GDF Suez . . . 15.42 -3.6 21.74 14.55 9.73 9.57 49638GenDyn . . . . 70.74 -0.5 74.49 61.09 2.88 10.37 24976GenElectric 21.13xd -0.3 23.18 18.03 3.31 15.68 221576Generali . . . . 14.55 1.3 14.64 8.16 1.37 19.27 30232GenGrPrp . . 19.13 -0.7 21.25 14.25 2.20 - 17961GenMills . .40.62xd -2.8 41.87 36.75 3.19 14.98 26265GenMotors .30.36 1.7 30.60 18.72 2.47 11.39 47544GileadSci . . .78.08 3.1 78.59 42.35 - 24.39 59157

GlaxoSmh . . 1.38k - 1.56k 1.31k 5.21 14.62 109286Glencore . .391.50 2.8 484 289.35 2.44 12.81 44815GMK Noril . .5.93k 5.8 6.04k 4.5k 3.31 9.07 37216Goldcorp . . .36.25 2.7 50.17 32.34 1.48 20.10 29903GoldmSchs 137.13 1.9 138.15 90.43 1.29 13.19 64443Google . . . .739.99 0.3 774.38 556.52 - 23.18 243156GrpMexico. . 47.42 -3.1 48.97 34.65 3.47 - 29200GtWesLif . . . 24.67 -0.4 25.28 19.82 4.99 11.32 23838Gzprm neft 143.60 0.8 177.25 119.20 5.08 3.72 22415H & M . . . . 220.40 -2.9 257.30 207 4.31 21.38 49745Halliburton .36.62 - 39.19 26.29 0.98 11.72 33983HangSeng . 119.40 - 120 92 4.36 12.66 29448HCP . . . . . . . . . . 46 0.5 47.64 37.81 4.35 30.85 20795HDFC Bk . . . . 669 -1.6 705 446.20 0.64 26.82 28882Heineken . . .49.60 -3.9 51.90 34.94 1.73 17.84 38129Heinz . . . . . . .58.46 -0.4 60 51.36 3.46 18.35 18746HenkelKgaA 50.76 -0.9 53.22 36.89 1.54 - 17599Hermes . . . . . 229 -0.8 285.49 207.70 0.87 37.36 32264Hess. . . . . . . .56.25 2.2 67.85 39.67 0.71 12.60 19212Hew-Pack . . 16.16 6.7 30 11.35 3.19 - 31482HindUnlvr 498.50 -6.6 571.12 369.61 3.31 30.66 19670Hitachi . . . . . . 539 1.7 556 398 1.86 12.68 28501HKChGas . . . 21.15 - 21.60 16.02 2.31 26.08 23711Holcim . . . . .66.70 -3.8 69.45 49 1.50 64.76 23914HomeDep . .63.70 0.8 65.92 42.76 1.82 22.54 95243HondaMtr . .3.38k 3.4 3.43k 2.29k 2.01 16.33 68732HonHaiPrc 88.60 0.7 106.36 71.82 1.54 11.24 36220Honywell . . . 66.31 - 66.87 52.21 2.30 22.22 51945HSBC . . . . . 677.70 1.5 677.70 479.17 4.17 16.92 201887HsngDevFin 809.60 -3.3 882 610.70 1.36 20.20 22774HuskyE . . . . .29.22 -1.6 29.96 22.04 4.11 14.77 29172Hutchison . 84.20 1.4 85.80 61.80 2.47 18.01 46309HyundaiMot 206k - 272.5k 197.5k 0.85 6.41 43024HyundMobis 258k -1.1 328k 257.5k 0.68 7.53 23812Iberdrola . . . .4.09 -0.5 4.79 2.63 0.71 8.69 34697IBM . . . . . . . 194.45 0.2 211.76 177.35 1.70 13.99 219715ICICI Bk . . . . 1.17k -1.4 1.19k 731.30 1.42 15.89 24530IllinoisTool . .62.56 0.3 63.32 47.56 2.37 15.26 28993ImpOil . . . . . .43.85 1.9 49.26 39.77 1.09 10.11 37783ImpTob . . . . . 2.45k 0.2 2.63k 2.21k 4.31 12.80 38839In&CmBkCh . 5.76 -0.5 5.81 3.97 4.39 7.12 64493Inbursa . . . . . 37.25 -3.8 42.98 24.12 0.87 29.61 19644Inditex . . . . . 105.55 -1.0 111.80 62.92 1.52 28.79 87805IndPenols 650.56 1.8 694.50 504.05 3.09 29.68 20453Inds Qatar . . . 165 2.2 168 124.90 4.55 10.88 24928IndstrlBk . . . 16.28 -3.0 17.60 11.59 2.27 5.31 33265Infosys . . . . . 2.71k 15.5 2.98k 2.1k 1.73 16.59 28290ING . . . . . . . . . . 7.77 5.1 7.89 4.44 - 8.09 39698Inpex . . . . . .466.5k 1.1 611k 418.5k 1.61 9.37 19145Intel . . . . . . . . . . 22 4.0 29.27 19.23 3.95 9.61 109472IntSPaolo . . . . 1.49 7.9 1.65 0.85 - - 30846Intuitive Srgcal 506 1.1 594.89 429.26 - 32.72 20120ItauHldFin 35.04xd -0.4 38.94 26.73 3.31 11.87 39248ITC . . . . . . . .273.50 -3.2 306.50 197 0.82 33.68 39327ItuasaPf . . 10.29xd - 11.49 7.99 3.10 10.47 15060JapanTob . 2.65kxa 5.1 2.66k 1.86k 2.27 16.40 59475Jard Str . . . .35.80 -2.5 37.79 28.83 0.64 9.75 40098JardnMt . . . 60.90 -4.1 64.95 47.40 2.09 10.89 40837JiangsuYB .100.44 8.0 172.77 85.50 1.24 18.28 17451John&John .72.35 1.1 72.74 61.71 3.37 23.77 200501JohnsonCn . 31.67 0.9 35.95 23.37 2.31 18.44 21660JPMrgnCh 46.14xd 1.7 46.49 30.83 2.60 9.80 175397KDDI . . . . . . 6.1kxa -1.5 6.4k 4.74k 2.79 14.79 30711Kellogg . . . . . 57.02 0.7 57.33 46.33 3.05 17.25 20437Kia Motors . 53.7k 0.2 84.8k 52.7k 1.12 9.71 20639

Kimb-Clark . 85.10 -1.5 88 70.50 3.48 17.93 33298KinderM . . . . 37.06 1.0 40.25 30.52 3.62 38.59 38421Komatsu . . .2.33k 1.7 2.51k 1.44k 1.93 14.59 25715Kumba Iron 589.70 -2.6 614.71 456.75 46,337.15 0.00 21690Larsen&T . . . 1.53k -5.9 1.72k 1.05k 1.08 19.07 17188LasVegasSd 52.52 2.6 58.31 32.61 7.14 30.57 43248LG Chem . . . 324k -2.1 434k 261.5k 1.23 15.08 20358Lilly (E) . . . . . 53.11 3.0 53.96 38.30 3.69 14.41 61632Linde . . . . . .128.60 -3.1 136.90 109.80 1.94 18.35 31790LlydsBkg . . .54.04 8.4 54.54 24.73 - 18.57 61292Lockheed . . . 93.71 -0.2 95.89 79.77 4.43 10.70 30323L’Oreal. . . . . 103.75 -1.8 107.50 79.22 1.93 23.78 84162Lowe’s . . . . . .35.83 0.7 36.47 24.77 1.73 21.22 40297Lukoil . . . . 2.01kxd 0.3 2.05k 1.55k 1.99 5.10 56176LVMH. . . . . . 137.85 -2.8 142.85 108.55 2.10 20.00 93407Lyondell . . . .60.91 4.3 60.95 32.30 6.90 15.69 35035Manulife . . . . 14.18 1.1 14.45 10.18 3.67 58.52 26256MarathonOil 32.15 0.4 35.49 23.17 2.12 12.59 22711Marsh&M . . .35.26 -0.4 35.78 30.69 2.55 16.80 19195MarthnPet . . 61.99 -0.9 64.09 30.24 1.94 8.27 21026MasterCard 528.68xd 3.5 532.39 336.27 0.23 30.63 65694Maybank . . . . . . 9 -0.7 9.56 8.17 7.56 12.49 25148McDonald’s . 91.73 2.0 102.22 83.32 3.13 17.28 92095McKesson . 101.08 1.1 102 74.89 0.79 15.45 23859Medtronic . .44.07 3.3 44.79 35.68 2.32 14.19 44571Merck . . . . . .43.23 3.1 48 36.91 3.91 19.64 131422Metlife . . . . .36.34 1.1 39.54 27.65 0.51 17.73 39649Microsoft . . .26.83 0.3 32.95 26.26 3.21 14.50 225814Millea Hld . .2.69k 8.3 2.72k 1.65k 1.95 22.97 23212MitsbCp . . . . 1.76k 3.0 2.04k 1.33k 3.29 8.32 32688MitsubEst . . . 2.1k -0.3 2.16k 1.13k 0.57 58.44 32840MitsubTk . . . . 479 -1.0 488 325 2.51 10.13 76133Mitsui . . . . . . 1.37k 2.3 1.44k 1.04k 3.66 8.06 28049MitsuiFud. . . 2.07k -2.3 2.16k 1.12k 1.06 32.55 20452Mizuho Fin . . 169 3.7 171 106 3.55 8.12 45711MollerMrsk 45.92k 2.8 48.16k 35k 2.18 11.46 18050MondelezInt 27.42 2.5 28.48 24.05 4.23 14.72 -Monsanto 100.08xd 4.1 100.62 69.71 1.35 24.10 53624MorganStly . 20.17 - 21.19 12.26 0.99 - 39822Mosaic . . . . . 59.74 1.9 61.97 44.43 1.46 13.87 25431Moutai . . . . 211.26 2.1 266.08 170.90 1.89 17.39 35284MTN Grp . . 175.85 -2.4 182.19 127 4.53 14.85 37827MTR . . . . . . . . 31.20 1.5 31.35 24.55 2.44 14.41 23317MuenchRkv 135.25 -2.1 139.25 91.39 4.62 7.19 32371Naspers N 538.86 -2.2 577.90 355.95 0.62 39.89 25504NatAusBk . . 25.57 1.0 27.13 21.95 10.06 11.97 63182Natl Grid . . 687xd -3.4 724.97 608 5.80 11.04 40300Nestle . . . . . . 61.25 0.4 62.30 52.50 3.18 19.76 216507Newcrest Mg 21.75 -4.8 36.10 20.89 2.60 14.90 17574NewmontM . 45.76 -0.4 64.61 42.95 3.06 - 22493NewsCpA . . .26.93 1.6 27.01 18.22 0.63 24.50 41634NextEraE . . . 71.78 1.3 72.22 58.58 3.34 13.96 30378Nike . . . . . . 53.10xc 0.4 57.38 42.55 1.41 22.22 47849Nintendo . . . 9.07k -1.1 13.12k 8.07k 1.10 - 14425Nintendo . . .9.06k -1.3 13.08k 8.06k 1.10 - 14409NipponTT . . 3.73k 1.1 3.99k 3.27k 4.03 9.30 55331Nissan Mt . . . 873 2.2 905 639 2.58 12.33 44304Nordea Bk . .66.40 2.9 66.95 51.35 3.38 10.36 41553NorfolkS . . . 64.04 -2.0 78.49 56.05 3.03 11.65 20239Novartis . . . .59.85 0.8 60.05 48.29 3.76 17.97 177536Novatek . . 342.40 -1.1 442.73 269.66 1.90 8.06 34227NovoB . . . . 968.50 1.9 980.50 648 1.45 25.90 78384NtlOilVarc . .70.89 -1.2 89.25 59.07 0.69 12.61 30263NTPC . . . . . . 152.70 -3.9 190.75 137 2.62 12.14 22980NTTDCMo . 128.5k 1.2 144.4k 111.9k 4.51 11.06 62966

OCBC . . . . . . . 9.75 -0.9 9.93 7.87 3.18 8.74 27388OccidPet . . .83.08 4.1 106.67 72.43 2.60 11.42 67310OilNatGas . 292xd 2.5 303.90 240.10 2.91 10.25 45596Oracle . . . . . .34.86 0.7 35 25.33 1.03 16.44 165038Pepsico. . . . .70.88 2.0 73.65 62.15 3.00 18.85 109641PernodRic . . 87.44 -0.8 91.11 71.74 1.81 20.03 30961Petrobras. . . 20.18 -2.9 28.26 18.05 9.63 - 73730PetroChina . 10.88 -2.9 11.92 9.03 3.63 13.67 29613Pfi zer . . . . . . .26.52 2.2 26.82 20.76 3.39 21.14 195255PG&E . . . . .40.95xd -0.5 47.02 39.40 4.44 18.97 17608Philips . . . . . . 20.91 3.2 21.23 13.57 3.35 45.45 26703PhilMorris . .89.23 3.1 94.13 72.86 3.63 17.83 149063PingAnIns . .66.95 -3.9 71.60 46.80 0.75 20.35 27031PNCFin . . .60.05xd -0.7 67.88 53.36 2.66 12.19 31758Posco . . . . .359.5k -2.0 427k 304.5k 2.64 9.65 29718Potash . . . . . 42.19 2.8 47.94 37.02 1.63 12.24 37090PowerAst . . .65.50 -0.2 69.20 52.55 3.54 14.95 18034PowerFn . . 27.88xd 0.1 30.15 24.06 5.02 10.74 20097PPR . . . . . . . 146.70 1.0 148.20 106.35 1.02 18.24 24663Prada. . . . . . .73.05 -2.6 75.70 31.55 0.71 32.82 24113Praxair . . . . . . . 114 0.6 116.92 101.93 1.93 20.32 33872Prec.Cast . . 187.80 -1.9 193.95 150.70 0.06 20.67 27332Priceline.com 655.49 1.1 774.96 469.28 - 24.75 32686ProctGmbl. .69.22 0.2 70.99 59.08 3.25 22.58 189263Prudential . . 57.60 1.9 65.16 44.47 2.78 22.27 26726Prudntl . . . .921.50 0.4 929.06 632 2.78 15.23 37996PTT . . . . . . . . . 326 -2.7 369 300 3.30 9.44 30751PublStor . . . 147.05 0.6 151.73 129.04 2.99 41.29 25241QatarNtBk .140.40 4.4 154 129.20 2.85 11.64 26986Qualcomm 64.90 2.2 68.87 53.09 1.49 21.19 110591Raytheon . 57.99xd -1.7 59.34 47.50 3.45 9.95 19129RBS . . . . . . 360.40 8.0 363.74 193.30 - - 35277ReckittB . . . . . . 4k 1.0 4k 3.26k 3.15 17.00 46340Reed Els . . . . . 660 -0.2 662.50 466.10 3.32 24.08 23401RelianceIn .839.25 -2.5 881 671 0.71 14.74 49469Repsol . . . . . . 16.53 3.3 23.86 10.90 6.30 11.33 27712ReynoldsAm 42.62 -0.4 46.91 38.96 5.47 16.13 23822Richemont .76.40 1.9 78.05 48.13 0.72 18.41 43715RioTinto . . . . 3.47k -4.0 4.03k 2.65k 2.99 7.78 78914Roche . . . . .195.20 2.6 195.80 148.40 3.48 19.98 150324RogCmB. . . 44.60 -1.2 45.86 34.75 3.54 15.44 18262RollsRyc . . 890.50 -3.0 922.14 493.10 1.77 13.71 26883Rosneft . . . .265.28 -1.8 274.75 184.61 1.30 6.56 92560RWE . . . . . . . .29.98 -6.0 37.12 25.98 6.67 7.95 23036RylBkC . . . . 60.90 -0.3 61.18 48.70 3.84 12.27 89480RylDShlA . . . 2.15k - 2.81k 1.95k 4.69 16.01 131018SABMill . . . . .2.93k 0.7 2.94k 2.27k 2.20 23.67 75469Saic Motor . 16.70 -5.1 17.94 11.17 1.80 8.84 29621Saipem . . . . 30.80 2.4 40.12 28.01 2.27 13.79 18139Salesforce . 173.35 2.2 173.77 99.53 - - 24616SandsCh . . 36.80 0.4 37.80 20.65 3.15 35.38 38241Sanofi . . . . . . 73.81 0.2 74.29 53.20 3.59 16.27 130451SantndrBrzl 15.51xd 4.2 19.70 13.59 2.88 - 28937SAP . . . . . . . . 61.32 -0.2 62.79 40.65 1.22 14.16 100523Sasol . . . . . .369.88 - 411.50 333.21 4.73 9.46 27298SaudiBasic . 94.75 3.6 110.25 84.75 5.28 11.77 75790SaudiTelec . . . 46 5.5 46.50 33.80 4.35 9.98 24530SbankR . . . . .99.56 7.1 103.85 75.30 2.09 6.67 70756SBI NewA. . .2.49k 0.2 2.55k 1.63k 1.41 8.65 30508Schlmbrg . . . 73.75 2.4 80.78 59.12 1.49 18.02 97908Schneider . . 55.41 -1.8 56.76 39.40 3.07 15.68 40956Seadrill . . . .210.40 0.1 246.90 188.50 10.92 16.49 17871SEB . . . . . . . .59.25 3.3 59.25 38.87 2.95 11.97 19867Seven & I . . . 2.61k 4.9 2.66k 2.09k 2.45 16.21 26012SHK Props . 123.20 3.7 125.70 85.30 2.72 7.41 42224

ShnEtsuCh . 5.45k 0.9 5.51k 3.66k 1.83 22.43 26437ShngPdgBk . .9.82 -2.0 10.35 7.10 3.05 5.47 29468SiamComBk 175.50 -4.6 186 109 1.99 16.04 19670Siemens . . . .83.65 -0.3 84.24 62.13 3.59 16.43 98353SimeDarby . .9.59 -1.2 10.26 8.93 3.65 14.17 19080SimonProp 159.98 0.9 164.11 125.53 2.69 32.21 49495SingTel . . . . 3.39xd 0.9 3.62 3.02 4.66 13.50 44121Sinopec . . . . . 9.21 0.8 9.67 6.38 4.06 11.85 19937SK Hynix . . . 27.1k 2.8 30.95k 20.1k - - 17836SmsungEl . 1,533k 0.5 1,584k 1,011k 0.36 11.40 214099SocGen . . . . 32.90 12.2 33.45 14.88 - 18.30 34255Softbank . . .3.02k -3.4 3.34k 2.05k 1.99 11.01 37812SouthCpr . . .39.45 0.9 39.68 27.73 9.40 17.28 33357Southern . . . 43.16 -2.3 48.58 41.75 4.50 17.03 37726SouzaCruz 31.40xd -1.4 33.33 21.48 12.92 28.74 23561SpectraEn . . 27.60 -2.6 32.26 26.55 4.24 17.88 18023SSE . . . . . . . . 1.45k -1.1 1.47k 1.2k 5.61 20.05 22407Stanbank . . 117.53 -2.0 120.75 99.50 4.22 12.89 21559StandCh . . . . 1.68k 2.9 1.7k 1.09k 3.22 12.94 65384Starbucks . . 55.01 -1.2 62 43.04 1.31 30.73 40905StateSt . . .50.58xd 2.4 50.66 38.21 1.90 12.80 23510Statoil . . . . 141.20 -0.8 162.80 133.20 4.60 5.52 81517StGobn . . . . . 31.72 -5.0 37.63 23.90 3.91 16.34 22484Stryker . . .58.84xd 3.7 58.89 49.43 1.53 15.78 22371SumitomoF .3.33k 3.3 3.38k 2.18k 3.00 8.72 52860Suncor En . .33.52 -0.2 37.28 26.97 1.49 10.98 52191Surgnfgz . . . 27.97 4.4 33.89 24.03 2.15 4.20 32898SvnskaHn 245.30 1.6 249.90 183.90 3.97 11.78 23540SwatchGpI 492.30 0.2 504 341.70 1.17 - 16642Swedbank .134.40 2.6 134.40 92.60 3.94 14.66 19753SwirePac . . . . . 98 0.5 98.95 75.10 3.42 8.83 11449SwirePrp . . .26.95 2.1 27.80 16.80 1.48 10.45 20338Swiss Re . . . .69.45 2.1 69.70 47.77 4.32 6.41 28221Swisscom . . . 408 1.2 410.80 334.40 5.39 39.04 23167Syngent . . .382.10 2.5 383.30 277.10 2.09 22.16 39004Sysco . . . . 30.91xd -3.0 32.40 27.06 3.53 16.44 18169TaiwanPet . . 87.20 -0.9 97 77.50 2.29 - 28691TaiwanSem . . .101 -0.5 102 73.80 2.97 16.75 90435Takeda Ph . . 4.27k 7.4 4.28k 3.16k 4.22 21.75 37852Target . . . . . .60.07 -0.8 65.79 48.29 2.30 13.32 39093Tata Cons . . 1.31k 0.7 1.44k 1.04k 1.91 20.88 46666TelBrasil . . . .50.78 1.2 57.32 42.78 3.62 14.16 18547TelecmItal . . . 0.74 4.8 0.93 0.60 5.79 - 13304Telefonica . . 10.96 4.5 13.62 7.90 6.85 8.08 66537Telenor . . . . 116.80 1.8 117.60 86.90 4.28 50.13 32988TeliaSonera .45.69 1.0 49.65 41.03 6.24 11.04 30570Telstra . . . . . . .4.48 - 4.52 3.18 8.93 16.29 58809TelusCorp . 64.99 -0.3 65.96 55.19 3.75 16.72 11556Tenaris . . . . 149.50 3.1 149.50 87.55 1.26 - 35712Tencent . . .255.20 -1.5 281 150.30 0.29 31.91 61014Tesco . . . . . .353.20 1.1 394.95 294.50 4.18 11.84 45799TevaPha . . . 14.55k 4.8 17.43k 13.71k 2.75 0.50 36757TexasInstr . .32.42 1.9 34.24 26.06 2.22 21.16 36336TGaBan . . . . .9.30 -1.7 9.80 5.44 1.54 11.20 22025TheTrvelers . 74.85 1.1 74.87 55.88 2.39 10.69 28551ThmReut . . . 29.27 0.8 30.25 26.47 4.30 - 24592ThrmoFshr 67.55xd 3.3 67.82 47.12 0.80 21.54 24333TimeWrnr . . 49.61 0.5 50.18 33.62 2.10 18.79 46974TimeWrnrC . 97.88 0.1 100.50 64 2.29 14.09 29538TJX Cos. . . . .43.96 -1.3 46.67 32.47 1.05 21.49 32058TlkmIndo . . .9.05k -0.5 9.95k 6.6k 4.10 13.86 18936TntoDom . 81.82xd -1.2 85.85 75.70 3.64 12.09 76380Total SA . . . .39.49 -0.8 42.97 33.42 5.88 8.40 124674Toyota . . . . . .4.26k - 4.33k 2.55k 1.41 - 164891TrnCan . . . 48.47xd 2.5 48.67 40.34 3.63 24.96 34744

Tullow . . . . . . 1.19k -7.0 1.61k 1.1k 1.01 24.36 17359TycoInt . . . . .30.25 1.6 30.74 23.50 2.64 50.69 14088UBS . . . . . . . . 15.85 7.7 15.85 9.69 0.63 - 66578UnibailR . . . 175.25 -5.9 188.50 130.50 4.56 13.35 21573Unicred . . . . . .4.28 9.9 4.65 2.20 4.62 14.29 33025Unilever . . . . 28.75 -2.2 29.67 24.51 3.26 19.99 65781UnionPac . . 130.97 - 132.05 104.10 1.90 16.22 61608UnlvrIndo. . . 21.3k -2.1 28.5k 17.5k 2.80 33.92 16868UOB . . . . . . . . 19.22 -2.9 20.23 15.15 3.12 4.89 24955UPS B . . . . . . 77.92 1.8 81.79 69.56 2.93 22.49 74337Uralkali . . 231.38xd -1.4 277.95 204.50 2.04 13.73 22365USBancorp 33.50xd 0.8 35.46 27.30 2.33 11.93 62992UtdHlthcre .52.82 1.4 60.75 49.82 1.51 10.06 53955UtdTech . . . . 85.18 0.2 87.50 70.72 2.38 14.73 78071Vale . . . . . . . . 41.27 -3.0 46.30 32.21 12.66 - 65982Ventas . . . . . . 65.19 0.3 68.07 53.45 3.80 47.67 19267Verizon . . .43.30xd -2.3 47.32 36.80 4.69 40.37 123578Viacom . . . . . 57.78 0.5 58.92 44.85 1.86 13.23 26060Vinci. . . . . . . . 37.10 - 40.85 31.23 4.77 10.68 28582Visa Inc . . . . 161.16 2.8 162.77 98.33 0.61 51.49 130638Vivendi . . . . . 16.68 -0.8 17.44 12.01 5.80 14.06 29454Vodacom . . . . .122 -5.8 129.88 89.01 11,502.24 0.01 20732Vodafone 165.20xd 3.2 191.94 154.20 5.51 18.55 130687Volkswgn . .164.60 -1.8 169.35 108.50 1.82 3.20 64823Volvo . . . . . . .92.70 -1.9 100.40 73.60 3.24 12.48 22659Walgreen . . . 39.10 5.2 39.20 28.53 2.56 17.53 36954WalMartSto 68.63 -0.6 77.50 57.18 2.32 14.12 229584WalMrtMex . 41.89 0.5 45.15 34.12 1.05 33.72 58719Wellpoint . . . 61.75 4.1 74.73 52.52 1.86 8.15 18751WellsFargo . . 35.10 0.5 36.60 28.78 2.22 10.43 184776Wesfarmers 37.59 2.0 37.67 28.25 6.27 20.41 39920Westfi eld . . . 10.78 2.5 10.84 8.20 4.54 14.72 25343Westpc . . . . .26.58 1.3 26.75 19.94 8.92 13.58 87031WharfHld . . .63.55 2.9 64.80 36.25 1.81 4.82 24834WholeFdM . .88.66 -2.8 99.67 69.73 2.96 35.12 16449Williams Cos 33.49 -1.9 37.56 27.24 3.57 31.53 22574Wipro . . . . . .419.50 4.0 452.50 325.60 1.43 16.78 18846WoodsdPet .34.67 0.3 38.16 30.09 4.70 18.50 30135Woolworths 30.19 2.2 30.62 23.96 5.96 20.31 39579WulianYnb . .28.78 3.2 39.55 23.31 1.74 11.95 17575Xstrata . . . . . 1.18k 2.5 1.29k 767.70 2.16 11.12 55993Yahoo . . . . . . 19.29 -2.9 20.32 14.35 - 5.85 22814Yahoo Jap .29.03k 1.6 30.45k 21.65k 1.20 15.64 18965Yum!Brnds 66.87xd -2.1 74.74 59.32 1.85 19.67 30212Zurich Fin .253.20 1.7 256 192.50 6.71 12.18 40906

W’k % 52 Week MCapStock Price Chng High Low Yld P/e m$

W’k % 52 Week MCapStock Price Chng High Low Yld P/e m$

W’k % 52 Week MCapStock Price Chng High Low Yld P/e m$

W’k % 52 Week MCapStock Price Chng High Low Yld P/e m$

W’k % 52 Week MCapStock Price Chng High Low Yld P/e m$

W’k % 52 Week MCapStock Price Chng High Low Yld P/e m$

W’k % 52 Week MCapStock Price Chng High Low Yld P/e m$

W’k % 52 Week MCapStock Price Chng High Low Yld P/e m$

close Week’s Week’s price change chng %

close Week’s Week’s price change chng %

MCap Mth’s In m chng %

Week’sCountry chng %

Week’sSector chng %

Gross No of US $ Day Mth YTD Total YTD Div stocks index % % % retn % YieldFTSE Global All-Cap 7196 393.31 0.2 4.1 3.1 500.15 3.2 2.6 Oil & Gas 175 442.07 0.3 3.3 3.2 612.84 3.2 3.0

Oil & Gas Producers 126 403.73 0.3 3.0 2.8 567.22 2.8 3.2Oil Equipment & Services 40 454.41 0.2 4.6 4.8 584.25 4.8 2.3Basic Materials 293 513.33 -0.4 4.8 1.8 692.18 1.8 2.7Chemicals 109 568.26 0.3 4.7 2.6 776.48 2.6 2.6Forestry & Paper 15 178.38 0.2 6.3 1.9 261.43 1.9 3.2Mining 77 1006.63 -1.2 3.7 0.4 1325.31 0.4 2.8Industrials 514 256.37 0.0 4.4 2.9 333.35 2.9 2.4Construction & Materials 110 401.87 -0.2 5.9 2.4 547.34 2.5 2.6Aerospace & Defense 27 330.69 -0.5 3.0 2.2 428.31 2.2 2.5General Industrial 52 179.05 -0.1 3.8 2.7 246.99 2.7 2.8Electronic & Electrical Equipment 70 258.02 0.3 2.1 2.0 312.96 2.0 1.9Industrial Engineering 106 578.99 0.2 5.8 3.1 740.90 3.1 2.2Industrial Transportation 88 430.70 0.0 6.3 4.4 559.55 4.4 2.4Support Services 61 224.98 0.3 3.0 3.2 281.90 3.2 2.5Consumer Goods 359 346.83 0.5 2.7 2.5 458.54 2.5 2.3Automobiles & Parts 88 318.86 0.5 8.0 2.7 406.43 2.7 2.0Beverages 46 473.62 0.4 -0.4 1.9 633.72 1.9 2.3Food Producers 88 467.81 0.4 2.5 2.6 638.60 2.7 2.4Leisure Goods 22 119.23 1.2 8.4 2.0 147.00 2.0 0.8Personal Goods 64 519.83 0.4 2.1 2.3 666.89 2.3 1.9Tobacco 13 979.58 0.6 -0.8 3.5 1682.71 3.5 4.1Health Care 145 292.57 0.2 2.1 4.2 382.88 4.2 2.5Health Care Equipment & Services 58 381.49 -0.2 1.8 2.3 422.83 2.3 1.3Pharmaceuticals & Biotechnology 87 227.72 0.3 2.1 4.7 307.07 4.8 2.8Consumer Services 346 278.04 0.2 3.1 2.7 342.52 2.7 2.0Food & Drug Retailers 50 230.09 0.2 3.2 2.5 291.77 2.6 2.6General Retailers 111 368.88 0.2 1.1 1.9 445.06 1.9 1.8Media 79 201.17 0.2 4.7 3.0 248.88 3.0 1.9Travel & Leisure 106 281.86 0.1 4.8 3.8 350.30 3.8 2.1Telecommunication 96 151.32 -0.1 2.3 2.6 235.92 2.9 5.1Fixed Line Telecommuniations 44 129.01 0.0 2.1 3.0 217.33 3.6 6.2Mobile Telecommunications 52 158.53 -0.2 2.4 2.1 227.17 2.1 4.1Utilities 156 231.88 0.1 2.0 1.0 377.29 1.1 4.8Electricity 112 242.70 0.1 2.6 1.1 392.52 1.2 4.7Gas Water & Multiutilities 44 263.72 0.1 1.3 1.0 436.85 1.0 5.0Financials 617 183.94 0.1 7.1 4.3 262.35 4.3 2.8Banks 236 185.31 0.1 7.8 4.6 278.76 4.7 3.2Nonlife Insurance 66 160.57 0.3 6.1 4.1 208.28 4.1 2.4Life Insurance 47 160.49 0.0 6.8 4.7 225.37 4.7 2.7Technology 168 121.15 0.5 2.2 2.5 137.21 2.5 1.7Software & Computer Services 65 195.97 1.0 3.3 3.2 217.32 3.3 1.3Technology Hardware & Equipment 103 96.36 0.2 1.5 1.8 110.53 1.8 2.1

Jan 11Countries & regions

FTSE Global Large Cap 1243 352.53 0.2 3.9 3.1 456.05 3.1 2.8FTSE Global Mid Cap 1626 501.54 0.1 4.5 3.0 616.58 3.0 2.2FTSE Global Small Cap 4327 534.93 0.1 5.3 3.6 641.54 3.7 2.0FTSE All-World (Large/Mid Cap) 2869 230.70 0.2 4.0 3.1 308.81 3.1 2.7FTSE World (Large/Mid Cap) 2462 403.41 0.2 3.9 3.1 725.37 3.1 2.7FTSE Global All Cap ex UK 6874 398.88 0.1 4.2 3.1 501.49 3.2 2.5FTSE Global All Cap ex USA 5281 435.04 0.3 4.7 2.9 578.46 2.9 3.1

FTSE Japan Large Cap 171 264.73 0.2 6.8 1.5 311.87 1.5 2.2FTSE Japan Mid Cap 277 343.97 -0.1 3.3 0.8 395.87 0.8 1.8FTSE Japan Small Cap 724 403.50 -0.4 3.1 1.3 476.74 1.3 2.0FTSE Japan (Large/Mid Cap) 448 107.02 0.2 6.2 1.4 141.98 1.4 2.1

FTSE North America Large Cap 278 325.97 0.1 2.9 3.2 401.94 3.3 2.3FTSE North America Mid Cap 411 494.42 0.0 4.2 3.4 581.31 3.4 1.8FTSE North America Small Cap 1477 521.62 0.0 4.8 3.6 598.44 3.6 1.6FTSE All-World North America 689 218.67 0.0 3.2 3.2 277.14 3.3 2.2FTSE All-World Dev ex North Am 1383 219.83 0.5 4.9 3.2 313.05 3.2 3.2

FTSE Asia Pacific Large Cap ex Japan 429 629.43 -0.4 3.4 2.2 856.94 2.2 2.9FTSE Asia Pacific Mid Cap ex Japan 444 792.43 -0.2 5.4 2.9 1054.51 2.9 2.7FTSE Asia Pacific Small Cap ex Japan 1207 574.33 -0.2 5.8 3.7 754.28 3.7 2.7

FTSE Latin Americas All-Cap 206 1315.24 -0.4 4.8 2.8 1775.26 2.9 3.1FTSE Middle East Africa All-Cap 204 737.47 -1.1 2.2 -1.0 1008.97 -1.0 3.1FTSE UK All Cap 322 339.16 0.5 3.8 3.0 482.78 3.0 3.5FTSE USA All Cap 1915 364.57 0.0 3.4 3.4 440.74 3.4 2.0FTSE Europe All Cap 1368 375.56 0.8 5.3 3.9 521.16 3.9 3.5FTSE Eurobloc All Cap 649 340.15 1.1 6.5 4.2 479.30 4.3 3.7

FTSE RAFI All-World 3000 Index 2992 4973.17 0.3 5.2 3.5 5747.49 3.6 3.0FTSE RAFI US 1000 Index 991 6574.01 -0.1 3.9 3.4 7762.59 3.4 2.3FTSE EDHEC-Risk Efficient All-W 2869 255.74 0.1 3.5 2.8 321.33 2.8 2.5FTSE EDHEC-Risk Efficient Dev Eur 511 247.59 0.7 4.3 3.3 332.92 3.3 3.1

The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010-0063942-A1, WO 2005/076812, WO 2007/078399 A2, WO 2008/118372, EPN 1733352, and HK1099110). “EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence.

Gross No of US $ Day Mth YTD Total YTD Div stocks index % % % retn % YieldCountries & regions

FTSE GLOBAL EQUITY INDEX SERIES

FTSE Global All Cap ex Eurobloc 7196 393.31 0.2 4.1 3.1 500.15 3.2 2.6FTSE Global All Cap ex Eurobloc 6547 400.71 0.0 3.9 3.0 501.72 3.0 2.5FTSE All-World Developed 2072 357.05 0.2 3.9 3.2 457.05 3.3 2.6FTSE Developed All-Cap 5566 373.71 0.2 4.1 3.3 474.32 3.3 2.6FTSE Developed Large Cap 843 333.66 0.3 3.8 3.2 431.47 3.3 2.8FTSE Developed Europe Large Cap 200 335.00 0.9 5.1 4.0 476.31 4.1 3.7FTSE Developed Europe Mid Cap 311 435.92 0.7 5.0 3.4 577.84 3.4 2.9FTSE Developed Europe Small Cap 715 575.72 0.8 7.6 4.5 746.63 4.5 2.8

FTSE All-World Asia Pacific ex Japan 873 493.52 -0.3 3.6 2.3 715.41 2.3 2.9FTSE All Emerging All-Cap 1630 756.31 -0.4 4.3 1.9 987.62 2.0 3.0FTSE All Emerging Large-Cap 400 726.39 -0.4 4.2 1.9 951.60 1.9 3.1FTSE All Emerging Mid-Cap 397 920.41 -0.2 4.1 1.7 1205.39 1.7 2.5FTSE All Emerging Small-Cap 833 737.91 -0.1 5.4 3.0 938.06 3.0 2.5FTSE All-World All Emerging Europe 81 512.98 -0.1 5.4 2.6 667.88 2.6 3.6

No of Euro Day’s Change Yield xd adj Total retn stocks index chge % points gross % ytd (Euro) €

FTSE Dev Eur L Cap 200 289.1 -0.1 -0.2 3.7 0.09 411.0FTSE Dev Eur M Cap 311 376.1 -0.3 -1.1 2.9 0.13 498.6FTSE Dev Eur S Cap 715 496.8 -0.2 -1.1 2.8 0.21 644.2FTSE Dev Europe 511 188.9 -0.1 -0.2 3.6 0.06 281.3FTSEurofirst 80 80 3551.5 0.3 9.9 4.1 2.14 5180.4FTSEurofirst 100 100 3482.2 -0.1 -3.0 4.0 1.23 5083.4FTSEurofirst 300 310 1163.4 -0.1 -1.3 3.6 0.33 1839.4FTSEurofirst 300 Ezone 167 1096.5 0.2 2.4 3.8 0.62 1733.4

Further information is avaliable on http://www.ftse.com. © FTSE International Limited (”FTSE”) 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. `FTSEurofirst´ and `Eurofirst´ are registred trade marks of FTSE and Euronext N.V. All rights in and to the FTSEurofirst indices vest in FTSE and Euronext N.V.

FTSEurofirst 300 SupersectorsOil & Gas 18 321.9 -0.3 -1.1 4.5 0.00 455.9Chemicals 15 829.3 0.1 0.4 2.7 0.00 1047.6Basic Resources 13 576.5 -1.7 -9.8 2.8 0.00 699.2Construction & Materials 12 373.4 -0.3 -1.3 3.9 0.00 488.6IndustrialGoods&Services 52 519.2 0.0 0.2 2.9 0.08 641.9Automobiles & Parts 9 582.8 0.6 3.5 3.1 0.00 701.3Food & Beverage 18 642.6 -0.1 -0.6 2.6 0.00 811.0Personal&HouseholdGds 20 674.8 -0.2 -1.3 2.6 0.00 841.0Health Care 19 422.8 -0.1 -0.2 3.4 0.00 549.9Retail 15 337.4 -0.2 -0.7 3.4 0.00 430.0Media 9 287.1 0.3 0.9 3.8 0.00 394.2Travel & Leisure 8 402.1 0.0 0.2 2.2 0.00 520.0Telecommunications 13 261.8 -0.5 -1.2 7.0 0.00 420.4Utilities 20 300.3 -0.6 -1.7 6.8 1.09 456.2Banks 29 167.4 0.3 0.5 3.2 0.12 227.5Insurance 19 299.7 0.2 0.6 4.0 0.00 413.7Financial Services 5 322.0 0.5 1.6 3.9 0.00 435.9Technology 11 253.6 0.7 1.7 2.2 0.00 300.5

Jan 11

EQUITY INDICES - FTSE EUROPEAN Week ago Yield P/E Yield P/E Yield P/E

Argentina 5.9 8.5 5.9 8.4 6.2 8.0Australia 4.4 16.4 4.4 16.4 4.3 16.5Austria 2.7 15.2 2.7 15.3 2.7 15.2Belgium 2.1 15.4 2.1 15.4 2.1 15.5Brazil 3.9 14.7 3.9 14.6 3.8 14.8Bulgaria 1.6 10.8 1.6 10.8 1.6 10.5Canada 2.9 15.7 3.0 15.6 3.0 15.6S&P/TSX 3.2 14.5 3.3 14.3 3.3 14.3Chile 2.9 20.4 2.9 20.2 3.0 19.9China 3.4 8.6 3.4 8.5 3.4 8.6Colombia 2.4 16.5 2.4 16.5 2.4 16.5Cyprys 2.1 37.9 2.0 38.2 2.0 38.6Czech Rep. 6.0 9.6 5.9 9.7 5.8 9.8Denmark 1.6 17.5 1.6 17.4 1.7 17.0Finland 4.9 16.5 5.0 16.5 4.9 16.5France 3.6 14.9 3.6 15.0 3.6 14.9Germany 3.0 12.3 3.0 12.3 3.0 12.3DAX 30 † 3.3 12.0 3.4 11.8 3.4 11.8Greece 1.7 16.1 1.7 16.1 1.8 15.5Hong Kong 2.6 13.3 2.6 13.3 2.6 13.3Hang Seng † 3.1 12.1 3.2 11.7 3.2 11.7Hungary 3.4 14.3 3.4 14.3 3.4 14.1India 1.5 18.1 1.5 18.1 1.5 18.1Indonesia 2.2 16.7 2.2 16.9 2.2 17.1Ireland 1.0 11.0 1.0 11.0 1.0 10.8Israel 3.4 14.2 3.5 14.0 3.5 13.9Italy 3.9 14.7 3.9 14.7 4.0 14.4Japan 2.2 16.1 2.2 16.0 2.2 15.6Topix † 2.2 13.0 2.2 12.7 2.2 12.7Luxemburg 3.9 9.4 3.9 9.4 3.9 9.4Malaysia 3.0 14.9 3.0 14.9 3.0 14.9

Week ago Yield P/E Yield P/E Yield P/E

Malta 4.6 15.9 4.6 16.1 4.6 16.0Mexico 1.7 20.4 1.7 20.4 1.8 20.2Netherland 2.7 14.7 2.8 14.7 2.8 14.7AEX † 3.2 10.6 3.3 10.3 3.3 10.3New Zealand 4.4 13.3 4.5 13.2 4.5 13.4Norway 4.2 9.8 4.2 9.7 4.3 9.7Pakistan 5.8 8.5 5.7 8.6 5.7 8.5Peru 4.8 41.5 4.8 40.9 4.9 40.4Philippines 1.7 20.5 1.7 20.7 1.7 20.3Poland 4.2 10.3 4.3 10.2 4.2 10.3Portugal 4.4 19.0 4.5 18.8 4.6 18.4Romania 4.6 11.4 4.7 11.1 4.9 10.7Russia 4.1 6.3 4.0 6.3 4.1 6.2Singapore 2.8 12.0 2.8 12.0 2.8 11.9Slovenia 3.8 12.5 3.8 12.4 3.9 12.3South Africa 3.3 16.3 3.3 16.4 3.3 16.6South Korea 1.3 16.6 1.3 16.5 1.3 16.7Spain 4.7 13.3 4.7 13.3 4.8 13.0Ibex 35 † 5.3 14.7 5.6 13.6 5.6 13.6Sri Lanka 2.5 14.0 2.5 14.0 2.5 14.1Sweden 3.6 12.9 3.6 12.9 3.6 12.9Switzerland 3.0 19.8 3.0 19.8 3.1 19.4Taiwan 3.3 19.0 3.4 18.8 3.3 19.1Thailand 2.9 15.5 2.8 15.7 2.9 15.6Turkey 1.9 12.3 1.9 12.3 2.0 12.1UK 3.3 12.9 3.3 12.9 3.4 12.8USA 2.2 16.4 2.2 16.3 2.2 16.2Dow Jones † 2.7 13.9 2.8 13.4 2.8 13.4S&P 500 † 2.5 15.4 2.6 14.8 2.6 14.8Venezuela 8.4 9.5 8.4 9.5 8.4 9.5

Country yields and P/E’s relate to a sample of stocks that cover at least 75% of each markets capita-lisation. † Losses are excluded from the P/E calculation on country indices. Source: ThomsonReuters

Jan 10 Jan 9 Jan 10 Jan 9STOCK MARKET - RATIOS

FTSE 100 Day’s Closing price change

Aberdeen AM 391.50 +11.40Admiral Group £11.92 +0.07Aggreko £17.80 +0.09AMEC £10.85 +0.21Anglo American £20.42 -0.30Antofagasta £13.03 -0.19ARM Holdings 870 +6.50ABF £15.30 +0.10AstraZeneca £30.18 +0.22Aviva 380.10 +12.10Babcock International 994.50 +4BAE Systems 349.70 +1.70Barclays 299.65 +5.05BG Group £10.54 +0.12BHP Billiton £20.75 -0.57BP 461.95 +0.90Brit Am Tobacco £31.47 -0.23British Land 569.50 +1B Sky B 780.50 +7BT Group 246 -0.30Bunzl £10.60 +0.11Burberry Group £13.05 +0.07Capita 774.50 +2.50Capital Shop Cntrs. 366 +1.10Carnival £24.19 +0.01Centrica 335.90 -Compass Group 747.50 +8.50CRH £12.35 +0.02Croda Intl £23.09 -0.19Diageo £17.89 +0.01ENRC 322.60 +1EVRAZ 280.80 -0.40Experian £10.30 +0.15Fresnillo £17.43 -0.07GKN 239.30 -0.70GlaxoSmithKline £13.83 +0.06Glencore 391.50 +4.60G4S 267.70 +6.10Hammerson 485.30 -2.80Hargreaves Lansdown 731 +7HSBC 677.70 +4.30IAG 207.60 +10.70IMI £11.30 +0.13Imperial Tobacco £24.48 -0.11Intercont Hotels £17.74 +0.24Intertek Group £31 -ITV 110 +2.30Johnson Matthey £22.50 -0.45Kazakhmys 808.50 -17.50Kingfisher 285 +1.70Land Secs Group 831.50 -0.50

Source: ThomsonReuters

Legal & General 151.10 +0.30Lloyds Banking G 54.04 +0.74Marks & Spencer 372.50 +3.70Meggitt 431.40 +4.50Melrose 245.20 +4.10Morrison Supermk 252.50 +0.60National Grid 687 -Next £39.95 +0.70Old Mutual 185.20 +1.70Pearson £11.99 +0.06Petrofac £16.78 +0.11Polymetal Int. £11.58 +0.11Prudential 921.50 +5Randgold Resourc £59 -0.50Reckitt Benckise £39.96 +0.81Reed Elsevier 660 +11Resolution 260.80 +0.10Rexam 459.80 -2.10Rio Tinto £34.68 -0.44Rolls-Royce Hldgs 890.50 -0.50Royal Bank Scot 360.40 +3.60Royal Dutch Shel A £21.54 +0.13Royal Dutch Shel B £22.16 +0.13RSA Insurance 127.60 +1.50SABMiller £29.32 +0.42Sage Group 313.60 +3.30Sainsbury 324 -1.70Schroders £18.19 +0.40Serco Group 549.50 +2Severn Trent £15.73 -0.13Shire £20.33 +0.15Smith & Nephew 686.50 -2.50Smiths Group £12.13 -SSE £14.50 -Standrd Chartrd £16.81 +0.11Standard Life 353 +1Tate & Lyle 769 -0.50Tesco 353.20 -2.20TUI Travel 283.10 +2.30Tullow Oil £11.86 -0.39Unilever £23.84 -0.03United Utilities 695 +2.50Vedanta Resource £12.10 +0.04Vodafone Group 165.20 +0.70Weir Group £19.41 +0.30Whitbread £24.61 +0.30Wolseley £30.38 +0.18Wood Group (John) 801 +6.50WPP 939.50 +19Xstrata £11.76 +0.14

FTSE 100 Day’s Closing price change

FTSE 100 SUMMARY

CURRENCY RATES www.ft.com/currencydata

Argentina Merval 3107.66 3114.20

Australia ALL ORDINARIES 4733.77 4745.15 S&P/ASX 200 Res 4314.01 4364.12 S&P/ASX 200 4709.49 4722.96

Austria ATX 2468.10 2477.93

Belgium BEL 20 2496.80 2505.27 BEL Mid 4062.34 4087.99

Brazil Bovespa 61497.43 61678.31

Canada S&P/TSX Met & Min 1042.79 1049.84 S&P/TSX 60 722.70 722.20 S&P/TSX Comp 12602.18 12599.74

Chile IGPA Gen 21676.41 21769.44

China Shanghai A 2348.10 2390.59 Shanghai B 254.02 260.27 Shanghai Comp 2243.00 2283.66 Shenzhen A 924.68 941.48 Shenzhen B 736.39 746.51 FTSE A200 6858.50 6987.03 FTSE B35 8990.51 9141.77

Colombia CSE Index 14729.97 14739.61

Croatia CROBEX 1844.24 1845.67

Cyprus CSE M&P Gen 115.71 119.83

Czech Republic PX 1053.70 1048.08

Denmark OMXC Copenhagen 20 (u) (u)

Egypt EGX 30 (u) 5754.51

Estonia OMX Tallinn (u) (u)

Finland OMX Helsinki General (u) (u)

France CAC 40 3706.02 3703.12 SBF 120 2844.98 2842.56

Germany M-DAX 12335.40 12348.40 XETRA Dax 7715.53 7708.47 TecDAX 873.66 875.30

Greece Athens Gen 979.72 984.85 FTSE/ASE 20 333.57 336.53

Hong Kong Hang Seng 23264.07 23354.31 HS China Enterprise 11842.59 11931.47 HSCC Red Chip 4665.43 4722.67

Hungary Bux 18999.53 18871.93

India BSE Sens 19663.64 19663.55 S&P CNX 500 4778.15 4809.20

Indonesia Jakarta Comp 4305.91 4317.37

Ireland ISEQ Overall 3481.48 3499.97

Jan Jan 11 10

Israel Tel Aviv 100 (u) 1085.24

Italy FTSE MIB 17502.39 17451.07 FTSE Italia Mid Cap 19166.61 19170.99 FTSE Italia All-Sh 18461.26 18409.24

Japan Nikkei 225 10801.57 10652.64 Topix 898.69 889.02 S&P Topix 150 764.45 755.27 2nd Section 2604.93 2590.37

Jordan Amman SE (u) (u)

Kenya NSE 20 4349.87 4319.73

Latvia OMX Riga (u) (u)

Lithuania OMX Vilnius (u) (u)

Luxenbourg Luxembourg General 852.42 853.29

Malaysia FTSE Bursa KLCI 1682.70 1684.57

Mexico IPC 44888.13 44859.80

Morocco MASI (u) 9227.50

Netherlands AEX 350.13 350.69 AEX All Share 538.05 539.33

New Zealand NZX 50 4131.75 4119.08

Nigeria SE All Share 29202.01 28695.59

Norway Oslo All Share 505.83 507.01

Pakistan KSE 100 16634.71 16529.92

Philippines Manila Comp 6051.75 6018.57

Poland Wig 47440.80 47546.91

Portugal PSI General 2523.88 2499.04 PSI 20 6150.17 6090.64

Romania BET Index 5586.31 5567.83

Russia RTS 1571.73 1572.00 Micex Index 1510.62 1504.58

Singapore FTSE Straits Times 3216.50 3226.25

Slovakia SAX 187.95 188.54

Slovenia SBI TOP 659.47 667.50

South Africa FTSE/JSE All Share 40281.14 40299.59 FTSE/JSE Top 40 35792.52 35813.24 FTSE/JSE Res 20 52813.96 53285.17

South Korea Kospi 1996.67 2006.80 Kospi 200 263.32 264.95

Spain Madrid SE 880.56 875.17 IBEX 35 8664.70 8618.90

Sri Lanka CSE All Share 5746.49 5732.21

Sweden OMX Stockholm 30 (u) (u) OMX Stockholm AS 352.45 351.01

Switzerland SMI Index 7188.22 7143.73

Taiwan Weighted Pr 7819.15 7811.64

Thailand Bangkok SET 1412.06 1405.99

Turkey ISE 100 81033.52 80837.46

UK FTSE 100 6121.58 6101.51 FT30 2280.70 2260.10 FTSE All Share 3209.56 3198.28 FTSE techMARK 100 2595.55 2578.11 FTSE4Good UK (u) 5155.01

USA S&P 500 1472.05 1472.12 FTSE Nasdaq 5000 8287.01 8276.38 Nasdaq Cmp 3125.64 3121.76 Nasdaq 100 2748.26 2744.18 Russell 2000 (u) (u) NYSE Comp. 8712.40 8713.75 Wilshire 5000 15522.88 15520.17 DJ Industrial 13488.43 13471.22 DJ composite 4586.40 4583.23 DJ Transport 5572.62 5574.04 DJ Utilities 458.96 458.69

Venezuela IBC 473891.25 474003.41

Vietnam VNI 462.69 460.12

Cross-Border Stoxx 50 € 2647.48 2650.35 Euro Stoxx 50 € 2717.79 2708.27 DJ Global Titans $ 200.95 200.29 Euronext 100 ID 691.87 691.44 FTSE Multinatls $ (u) 1257.63 FTSE Global 100 $ 1102.50 1097.89 FTSE4Good Glob $ (u) 4636.37 FTSE E300 1163.40 1164.65 FTSEurofirst 80 € 3551.46 3541.54 FTSEurofirst 100 € 3482.18 3485.14 FTSE Latibex Top € 4615.30 4665.80 FTSE Eurotop 100 2386.77 2388.38 FTSE Gold Min $ 2770.58 2770.58 FTSE All World 230.70 230.32 FTSE World $ 403.41 402.60 MSCI All World $ (u) 1378.49 MSCI ACWI Fr$ (u) 349.49 MSCI Europe € 1187.12 1183.67 MSCI Pacific $ (u) 2154.69 S&P Global 1200 $ 1551.22 1549.34 S&P Europe 350 € 1172.90 1174.45 S&P Euro € 1136.28 1134.12

Country Index Jan Jan 11 10

Jan Jan 11 10

Country Index Country Index

(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 - WORLD MARKETS AT A GLANCE

FT 30 constituents and recent additions/deletions can be found at www.ft.com/ft30.

Jan-11 Jan-10 Jan 9 Jan 8 Jan 7 Yr ago High LowFT 30 2280.7 2260.1 2252.7 2236.4 2239.0 n/a 2263 2176.2Ord. div. yield 2.26 2.27 2.28 2.28 2.27 n/a 3.93 2.74P/E ratio 19.78 19.65 19.60 19.56 19.64 n/a 19.44 14.26FT 30 since compilation: 4198.4 high ; low Base Date: 1/7/35. 19/07/1999 49.4 26/06/1940

8 9 10 11 12 13 14 15 16 High Low 2260.1 2271.1 2268.6 2271.1 2272.3 2273.5 2273.6 2273.8 2277.8 2280.7 2260.1

FT 30 INDEX

FT 30 hourly changes

% chg % of Gross since Mkt Cap Gold div Total 52 week$ 31/12/11 $bn Mines yld % Return High Low

Copyright FTSE International Limited 2013. All rights reserved. For further information please contact FTSE Client Service on +44 (0) 20 7866 1810. Figures in brackets show number of companies. Basis US Dollars. Base Values: 1000.00 31/12/92. † Partial.

Australasia (5) 10844.38 -0.50 22.55 10.58 1.82 12908.85 17569.63 9900.77EMEA (7) 2568.11 -4.57 38.98 18.30 1.84 3408.38 3602.12 2403.39Americas (14) 2411.28 -1.10 151.52 71.12 1.82 2727.93 3115.89 2140.07

Gold Mines Index (26) 2773.30 -1.69 213.05 100.00 1.82 3290.85 3705.49 2526.64

Regional Indices

11 Jan

FTSE GOLD MINES INDEX www.ft.com/commoditiesdata

%

Cyprus Popular Bank 3.00

ADVERTISED BASE LENDING RATES

For further information on any of these rates please contact each bank directly.

NOTESData from ThomsonReuters, except UK

Companies’ earnings data which is supplied byMorningstar (Contact 020 3194 1200 for furtherinformation).

Closing mid­prices/last trades and highs andlows are shown in local currencies, except Rus­sian companies which are quoted in US Dollars.

Highs and lows are based on intra­day midprices/last trades over a rolling 52 week period.

‡ Market Capitalisations are shown in millionsof US Dollars. # Price at time of suspension.

Abb: xd ex dividend; xc ex scrip issue; xr exrights; xa ex all; xR ex capital redistribution.

pages of www.ft.com.Either click on the ‘market data’ link on the home page or go to www.ft.com/marketsdata. Bond data can be found at www.ft.com/bonds&rates.

UK gilt prices can be found at www.ft.com/gilts.A full commodity data service with hundreds of price quotes can be found at www.ft.com/commoditiesdata.

Market data on the webMuch more data, including many tables not shown in the paper and stock quotes updated during the day, are available on the market data

For additional currency data visit www.ft.com/currencydata.

Please send any comments to reader.enquiries@ft.com.020 7873 4211

JANUARY 14 2013 Section:Stats Time: 13/1/2013 - 18:03 User: aldersonm Page Name: PRICES1 INT, Part,Page,Edition: ASI, 18, 1

FINANCIAL TIMES MONDAY JANUARY 14 2013 ★ 19

MARKET DATA £ STG Week US $ Week EURO € Week Yen Week Change Change Change (x 100) Change

Afghanistan (Afghani) 82.2833 0.4491 51.0300 0.0000 68.1021 1.5335 57.2856 -0.6767Albania (Lek) 168.501 -3.0495 104.500 -2.4750 139.461 -0.0885 117.310 -4.1970Algeria (Dinar) 126.144 0.2147 78.2311 -0.2955 104.403 1.9655 87.8211 -1.3731Andorra (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Angola (Readj. Kwanza) 154.586 0.8918 95.8700 0.0300 127.943 2.9201 107.622 -1.2372Antigua (E Carib $) 4.3536 0.0238 2.7000 0.0000 3.6033 0.0812 3.0310 -0.0358Argentina (Peso) 7.9688 0.0688 4.9420 0.0158 6.5954 0.1691 5.5478 -0.0476Armenia (Dram) 657.073 12.4061 407.500 5.5000 543.829 19.4201 457.454 0.8433Aruba (Florin) 2.8863 0.0157 1.7900 0.0000 2.3889 0.0538 2.0094 -0.0237Australia (A$) 1.5285 -0.0056 0.9479 -0.0087 1.2651 0.0172 1.0641 -0.0225Austria (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Azerbaijan (New Manat) 1.2642 0.0069 0.7840 0.0000 1.0463 0.0236 0.8801 -0.0104Azores (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295

Euro Locking Rates: Austrian Schilling 13.7603, Belgium/Luxembourg Franc 40.3399, Cyprus 0.585274, Estonia 15.6466, Finnish Markka 5.94573, French Franc 6.55957, German Mark 1.95583, Greek Drachma 340.75, Irish Punt 0.787564, Italian Lira 1936.27, Malts 0.4293, Netherlands Guilder 2.20371, Portuguese Escudo 200.482, Slovakian Koruna 30.1260, Slovenian Tolar 239.64 Spanish Peseta 166.386. Abbrev:(o) Official rate (v) Floating rate; WM/Reuters rate is for valuation of capital assets. (1) Malawi Kwacha devalued by approx 50% on May 7th, 2012. (2) Netherland Antilles are Curacao & Saint Maarten. Bonaire, Saint Eustatius and Saba now use US Dollar. (3) Chinese Yuan unrestricted trading in Hong Kong. (4) Zambia Kwacha has been re-denominated by 1000 on Dec 31 2012Rates derived from THE WM/REUTERS CLOSING SPOT RATES & Reuters. FT R/eaders Enqiries: 020 7873 4211.

Jan 11 £ STG Week US $ Week EURO € Week Yen Week Change Change Change (x 100) Change

Germany (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Ghana (Cedi) 3.0677 0.0280 1.9025 0.0070 2.5390 0.0664 2.1357 -0.0173Gibraltar (Gib £) 1.0000 0.0000 0.6202 -0.0034 0.8277 0.0142 0.6962 -0.0121Greece (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Greenland (Danish Krone) 9.0155 -0.1546 5.5912 -0.1271 7.4617 0.0023 6.2766 -0.2185Grenada (E Carib $) 4.3536 0.0238 2.7000 0.0000 3.6033 0.0812 3.0310 -0.0358Guadeloupe (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Guam (US $) 1.6125 0.0088 1.0000 0.0000 1.3346 0.0301 1.1226 -0.0133Guatemala (Quetzal) 12.7553 -0.0138 7.9105 -0.0520 10.5570 0.1699 8.8802 -0.1640Guinea (Fr) 11271.0 61.5120 6990.00 0.0000 9328.51 210.047 7846.88 -92.6937Guinea-Bissau (CFR Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Guyana Guyana Dollar 323.216 -3.5121 200.450 -3.2900 267.511 1.7317 225.022 -6.3951

Pakistan (Pak. Rupee) 156.859 0.5915 97.2800 -0.1650 129.825 2.7081 109.205 -1.4774Panama (Balboa) 1.6125 0.0088 1.0000 0.0000 1.3346 0.0301 1.1226 -0.0133Papua New Guinea (Kina) 3.3563 0.0317 2.0815 0.0084 2.7778 0.0734 2.3367 -0.0181Paraguay (Guarani) 6788.43 -31.0965 4210.00 -42.5000 5618.46 71.0753 4726.09 -104.102Peru (New Sol) 4.1118 0.0297 2.5500 0.0045 3.4031 0.0825 2.8626 -0.0287Philippines (Peso) 65.4776 -0.1197 40.6075 -0.2975 54.1928 0.8322 45.5854 -0.8764Pitcairn Is (Sterling £) 1.0000 0.0000 0.6202 -0.0034 0.8277 0.0142 0.6962 -0.0121Poland (Zloty) 4.9744 -0.0909 3.0850 -0.0737 4.1171 -0.0033 3.4631 -0.1246Portugal (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Puerto Rico (US $) 1.6125 0.0088 1.0000 0.0000 1.3346 0.0301 1.1226 -0.0133

Bahamas (Bahama $) 1.6125 0.0088 1.0000 0.0000 1.3346 0.0301 1.1226 -0.0133Bahrain (Dinar) 0.6080 0.0034 0.3771 0.0001 0.5032 0.0114 0.4233 -0.0049Balearic Is (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Bangladesh (Taka) 128.528 0.6132 79.7100 -0.0550 106.377 2.3236 89.4814 -1.1195Barbados (Barb $) 3.2249 0.0176 2.0000 0.0000 2.6691 0.0601 2.2452 -0.0265Belarus (Rouble)(1) 13980.0 140.442 8670.00 40.0000 11570.6 312.712 9732.82 -69.5381Belgium (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Belize (B $) 3.2169 0.0176 1.9950 0.0000 2.6624 0.0600 2.2396 -0.0265Benin (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Bermuda (Bermudian $) 1.6125 0.0088 1.0000 0.0000 1.3346 0.0301 1.1226 -0.0133Bhutan (Ngultrum) 88.3462 -0.0391 54.7900 -0.3250 73.1200 1.2225 61.5065 -1.0957Bolivia (Boliviano) 11.1421 0.0609 6.9100 0.0000 9.2218 0.2077 7.7571 -0.0916Bosnia Herzegovina (Marka) 2.3631 -0.0413 1.4656 -0.0338 1.9558 0.0000 1.6452 -0.0578Botswana (Pula) 12.7619 0.1544 7.9145 0.0529 10.5625 0.3069 8.8847 -0.0449Brazil (Real) 3.2846 0.0192 2.0370 0.0008 2.7185 0.0623 2.2867 -0.0261Brunei (Brunei $) 1.9752 0.0035 1.2250 -0.0046 1.6348 0.0309 1.3751 -0.0214Bulgaria (Lev) 2.3632 -0.0412 1.4656 -0.0338 1.9559 0.0000 1.6453 -0.0578Burkina Faso (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Burma (Kyat)(o) 1383.48 9.1541 858.000 1.0000 1145.04 27.0874 963.179 -10.2420Burundi (Burundi Fr) 2511.49 20.5702 1557.56 4.2800 2078.64 52.3874 1748.50 -15.7932Cambodia (Riel) 6443.35 35.1648 3996.00 0.0000 5332.86 120.080 4485.86 -52.9906Cameroon (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Canada (Canadian $) 1.5861 0.0057 0.9837 -0.0018 1.3127 0.0272 1.1042 -0.0151Canary Is (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Cape Verde (CV Escudo) 132.495 -0.5278 82.1700 -0.7800 109.660 1.4517 92.2429 -1.9756Cayman Island (CI $) 1.3222 0.0072 0.8200 0.0000 1.0944 0.0247 0.9205 -0.0109Cent. Afr. Rep. (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Chad (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Chile (Chilean Peso) 762.125 3.1972 472.650 -0.6000 630.775 13.4205 530.590 -6.9493China (Yuan) 10.0232 0.0319 6.2161 -0.0142 8.2957 0.1683 6.9781 -0.0986China (R Yuan HK)(3) 9.9714 0.0063 6.1840 -0.0300 8.2529 0.1467 6.9421 -0.1161Colombia (Col Peso) 2842.06 9.3288 1762.57 -3.8550 2352.24 47.9365 1978.64 -27.7520Comoros (Fr) 594.413 -10.3740 368.639 -8.4919 491.968 0.0000 413.830 -14.5339Congo (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Congo (DemRep) (Congo Fr) 1473.97 2.8760 914.119 -3.2228 1219.94 23.2651 1026.18 -15.7826Costa Rica (Colon) 803.364 -4.7485 498.225 -5.6950 664.907 7.5422 559.301 -13.0756Cote d’Ivoire (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Croatia (Kuna) 9.1249 -0.1853 5.6590 -0.1466 7.5522 -0.0212 6.3527 -0.2415Cuba (Cuban Peso) 1.6125 0.0088 1.0000 0.0000 1.3346 0.0301 1.1226 -0.0133Cyprus (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Czech Rep. (Koruna) 30.9647 -0.2282 19.2035 -0.2477 25.6280 0.2540 21.5576 -0.5360

Denmark (Danish Krone) 9.0155 -0.1546 5.5912 -0.1271 7.4617 0.0023 6.2766 -0.2185Djibouti Rep (Djib Fr) 282.179 0.7382 175.000 -0.5000 233.546 4.6065 196.453 -2.8886Dominica (E Carib $) 4.3536 0.0238 2.7000 0.0000 3.6033 0.0812 3.0310 -0.0358Dominican Rep (D Peso) 65.1431 0.3155 40.4000 -0.0250 53.9159 1.1814 45.3525 -0.5641

Falkland Is (Falk £) 1.0000 0.0000 0.6202 -0.0034 0.8277 0.0142 0.6962 -0.0121Faroe Is (Danish Krone) 9.0155 -0.1546 5.5912 -0.1271 7.4617 0.0023 6.2766 -0.2185Fiji Is (Fiji $) 2.8424 -0.0112 1.7628 -0.0166 2.3525 0.0313 1.9788 -0.0422Finland (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295France (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Fr. Cty/Africa (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Fr. Guiana (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Fr. Pacific Is (CFP Fr) 144.181 -2.5163 89.4172 -2.0598 119.332 0.0000 100.378 -3.5254

Ecuador (Sucre) 40311.3 220.000 25000.0 0.0000 33363.8 751.250 28064.7 -331.523Egypt (Egyptian £) 10.5492 0.2521 6.5424 0.1213 8.7311 0.3548 7.3444 0.0510El Salvador (Colon) 14.1050 0.0771 8.7475 0.0000 11.6740 0.2629 9.8198 -0.1160Equat’l Guinea (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Eritrea (Nakfa) 24.1868 0.1320 15.0000 0.0000 20.0183 0.4508 16.8388 -0.1989Estonia (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Ethiopia (Ethiopian Birr)(2) 29.5136 0.1900 18.3036 0.0180 24.4271 0.5736 20.5473 -0.2223

Haiti (Gourde) 67.9648 0.3709 42.1500 0.0000 56.2513 1.2667 47.3170 -0.5590Honduras (Lempira) 32.0878 0.1751 19.9000 0.0000 26.5576 0.5980 22.3395 -0.2639Hong Kong (HK $) 12.4994 0.0701 7.7518 0.0012 10.3452 0.2345 8.7021 -0.1015Hungary (Forint) 357.517 -0.7384 221.723 -1.6771 295.900 4.4750 248.903 -4.8452

Iceland (Icelandic Krona) 206.684 -0.9006 128.180 -1.2650 171.063 2.2017 143.893 -3.1366India (Indian Rupee) 88.3462 -0.0391 54.7900 -0.3250 73.1200 1.2225 61.5065 -1.0957Indonesia (Rupiah) 15536.0 44.6968 9635.00 -25.0000 12858.4 256.919 10816.1 -156.165Iran (Rial) 19798.5 113.664 12278.5 3.5000 16386.3 373.535 13783.7 -158.849Iraq (New Iraqi Dinar) 1875.28 10.2344 1163.00 0.0000 1552.08 34.9482 1305.57 -15.4224Irish Rep (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Israel (Shekel) 6.0229 -0.0333 3.7353 -0.0413 4.9849 0.0584 4.1931 -0.0964Italy (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295

Jamaica (Jamaican $) 149.442 1.2165 92.6800 0.2500 123.686 3.1112 104.041 -0.9451Japan (Yen) 143.637 2.4517 89.0800 1.0400 118.882 4.0336 100.000 -Jordan (Jordanian Dinar) 1.1432 0.0053 0.7090 -0.0006 0.9461 0.0205 0.7959 -0.0101

Kazakhstan (Tenge) 243.448 1.6413 150.980 0.1950 201.490 4.7914 169.488 -1.7806Kenya (Kenyan Shilling) 139.880 1.3247 86.7500 0.3500 115.772 3.0634 97.3844 -0.7528Kiribati (Australian $) 1.5285 -0.0056 0.9479 -0.0087 1.2651 0.0172 1.0641 -0.0225Korea North (Won)(o) 2.0962 0.0114 1.3000 0.0000 1.7349 0.0391 1.4594 -0.0172Korea South (Won) 1700.65 -5.0713 1054.70 -8.9500 1407.55 20.0184 1183.99 -24.1521Kuwait (Kuwaiti Dinar) 0.4539 0.0011 0.2815 -0.0009 0.3756 0.0073 0.3160 -0.0048Kyrgyzstan (Som) 76.4785 0.4867 47.4300 0.0432 63.2977 1.4816 53.2443 -0.5799

Laos (New Kip) 12785.1 72.9825 7929.00 2.0000 10581.6 240.875 8900.99 -102.874Latvia (Lats) 0.8427 -0.0150 0.5226 -0.0122 0.6974 -0.0002 0.5866 -0.0208Lebanon (Lebanese £) 2427.54 13.2484 1505.50 0.0000 2009.17 45.2401 1690.05 -19.9643Lesotho (Maloti) 14.1187 0.3196 8.7560 0.1513 11.6853 0.4604 9.8294 0.0557Liberia (Liberian $) 118.322 2.8588 73.3800 1.3800 97.9293 4.0053 82.3754 0.5944Libya (Libyan Dinar) 2.0212 0.0014 1.2535 -0.0060 1.6729 0.0298 1.4072 -0.0234Liechtenstein (Swiss Fr) 1.4711 -0.0145 0.9123 -0.0141 1.2175 0.0091 1.0241 -0.0281Lithuania (Litas 4.1719 -0.0728 2.5873 -0.0596 3.4529 0.0001 2.9044 -0.1020Luxembourg (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295

Qatar (Riyal) 5.8701 0.0312 3.6405 -0.0005 4.8584 0.1087 4.0868 -0.0489

Reunion Is. de la (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Romania (New Leu) 5.3010 -0.1342 3.2876 -0.1017 4.3874 -0.0339 3.6906 -0.1591Russia (Rouble) 48.9774 0.2305 30.3746 -0.0230 40.5364 0.8828 34.0981 -0.4289Rwanda (Fr) 1017.65 6.6664 631.119 0.6938 842.261 19.8699 708.486 -7.5812

St Christopher (E Carib $) 4.3536 0.0238 2.7000 0.0000 3.6033 0.0812 3.0310 -0.0358St Helena (£) 1.0000 0.0000 0.6202 -0.0034 0.8277 0.0142 0.6962 -0.0121St Lucia (E Carib $) 4.3536 0.0238 2.7000 0.0000 3.6033 0.0812 3.0310 -0.0358St Pierre & Miquelon (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295St Vincent (E Carib $) 4.3536 0.0238 2.7000 0.0000 3.6033 0.0812 3.0310 -0.0358San Marino (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Sao Tome (Dobra) 28700.0 -263.525 17799.0 -262.000 23753.7 193.081 19980.9 -533.623Saudi Arabia (Riyal) 6.0475 0.0334 3.7505 0.0002 5.0052 0.1130 4.2102 -0.0495Senegal (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Serbia (Dinar) 135.027 -3.5047 83.7400 -2.6450 111.755 -0.9341 94.0054 -4.1148Seychelles (Rupee) 21.0468 0.0740 13.0527 -0.0255 17.4195 0.3591 14.6527 -0.2020Sierra Leone (Leone) 6988.55 38.1402 4334.11 0.0000 5784.09 130.238 4865.41 -57.4742Singapore ($) 1.9752 0.0035 1.2250 -0.0046 1.6348 0.0309 1.3751 -0.0214Slovakia (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Slovenia (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Solomon Is ($) 11.4293 0.0581 7.0746 -0.0025 9.4594 0.2094 7.9419 -0.0967Somali Rep (Shilling) 2513.81 28.1521 1559.00 9.0000 2080.56 58.5885 1750.11 -10.4511South Africa (Rand) 14.1187 0.3196 8.7560 0.1513 11.6853 0.4604 9.8294 0.0557Spain (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Spanish Ports N Af. (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Sri Lanka (Rupee) 203.572 -0.7333 126.250 -1.1500 168.487 2.2936 141.727 -2.9804Sudan Rep (£) 7.1190 0.0389 4.4150 0.0000 5.8920 0.1327 4.9562 -0.0586Surinam (Dollar) 5.3211 0.0290 3.3000 0.0000 4.4040 0.0992 3.7045 -0.0438Swaziland (Lilangeni) 14.1187 0.3196 8.7560 0.1513 11.6853 0.4604 9.8294 0.0557Sweden (Krona) 10.4353 -0.0670 6.4717 -0.0774 8.6368 0.0936 7.2650 -0.1737Switzerland (Fr) 1.4711 -0.0145 0.9123 -0.0141 1.2175 0.0091 1.0241 -0.0281Syria (£) 114.242 0.6235 70.8500 0.0000 94.5529 2.1290 79.5352 -0.9395

Taiwan ($) 46.6845 0.1746 28.9525 -0.0500 38.6386 0.8048 32.5017 -0.4407Tajikistan (Somoni) 7.6730 0.0419 4.7586 0.0000 6.3506 0.1430 5.3419 -0.0631Tanzania (Shilling) 2583.15 30.1341 1602.00 10.0000 2137.95 61.1849 1798.38 -9.8855Thailand (Baht) 48.8250 -0.1344 30.2800 -0.2500 40.4102 0.5838 33.9919 -0.6855Togo Rep (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Tonga Is (Pa’anga) 2.7754 0.0047 1.7206 -0.0065 2.2971 0.0432 1.9315 -0.0302Trinidad/Tobago ($) 10.3416 0.0632 6.4136 0.0042 8.5593 0.1983 7.1998 -0.0803Tunisia (Dinar) 2.4999 -0.0147 1.5504 -0.0177 2.0691 0.0235 1.7404 -0.0407Turkey (New Lira) 2.8595 -0.0026 1.7734 -0.0113 2.3667 0.0386 1.9908 -0.0364Turkmenistan (New Manat) 4.5794 0.0170 2.8400 -0.0050 3.7901 0.0788 3.1881 -0.0433Turks & Caicos (US $) 1.6125 0.0088 1.0000 0.0000 1.3346 0.0301 1.1226 -0.0133Tuvalu (Australian $) 0.6542 0.0024 0.9479 -0.0087 0.7905 -0.0109 1.0641 -0.0225

Uganda (New Shilling) 4313.31 -40.6060 2675.00 -40.0000 3569.92 28.2035 3002.92 -80.9068Ukraine (Hryvnia) 13.0972 0.2038 8.1225 0.0825 10.8399 0.3517 9.1182 -0.0140U A E (Dirham) 5.9225 0.0322 3.6730 -0.0001 4.9018 0.1103 4.1232 -0.0488United Kingdom (£) 1.0000 0.0000 0.6202 -0.0034 0.8277 0.0142 0.6962 -0.0121United States (US $) 1.6125 0.0088 1.0000 0.0000 1.3346 0.0301 1.1226 -0.0133Uruguay (Peso Uruguay) 31.1203 0.2019 19.3000 0.0200 25.7569 0.6061 21.6659 -0.2332Uzbekistan (Sum) 3201.60 17.6172 1985.55 0.0900 2649.82 59.7832 2228.95 -26.2280

Western Samoa (Tala) 3.6281 -0.0039 2.2492 -0.0148 3.0028 0.0483 2.5249 -0.0466

£ STG Week US $ Week EURO € Week Yen Week Change Change Change (x 100) Change

Gabon (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Gambia (Dalasi) 53.2111 -1.5136 33.0000 -1.1250 44.0403 -0.4759 37.0454 -1.7154Georgia (Lari) 2.6705 0.0118 1.6562 -0.0018 2.2102 0.0475 1.8592 -0.0240

Namibia (Dollar) 14.1187 0.3196 8.7560 0.1513 11.6853 0.4604 9.8294 0.0557Nauru Is (Australian $) 1.5285 -0.0056 0.9479 -0.0087 1.2651 0.0172 1.0641 -0.0225Nepal (Nepalese Rupee) 141.354 -0.0625 87.6640 -0.5200 116.992 1.9560 98.4104 -1.7532Netherlands (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295N’nd Antilles (A/Guilder)(3) 2.8863 0.0157 1.7900 0.0000 2.3889 0.0538 2.0094 -0.0237New Zealand (NZ $) 1.9225 -0.0124 1.1923 -0.0142 1.5912 0.0173 1.3384 -0.0320Nicaragua (Gold Cordoba) 38.9584 0.2489 24.1610 0.0226 32.2441 0.7555 27.1228 -0.2947Niger Rep (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Nigeria (Naira) 252.042 0.7502 156.310 -0.3900 208.604 4.1883 175.471 -2.5158Norway (Nor. Krone) 8.9059 -0.0885 5.5232 -0.0855 7.3710 0.0545 6.2003 -0.1704

Vanuatu (Vatu) 150.410 0.5883 93.2800 -0.1450 124.487 2.6138 104.715 -1.4017Vatican (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Venezuela (Bolivar Fuerte) 6.9249 0.0378 4.2947 0.0000 5.7314 0.1291 4.8211 -0.0570Vietnam (Dong) 33619.6 195.517 20850.0 7.5000 27825.4 636.331 23405.9 -267.971Virgin Is-British (US $) 1.6125 0.0088 1.0000 0.0000 1.3346 0.0301 1.1226 -0.0133Virgin Is-US (US $) 1.6125 0.0088 1.0000 0.0000 1.3346 0.0301 1.1226 -0.0133

Yemen (Rep of) (Rial) 346.596 1.8916 214.950 0.0000 286.862 6.4593 241.300 -2.8504

Zambia (Kwacha)(4) 8.5138 0.0785 5.2800 0.0200 7.0465 0.1848 5.9273 -0.0473Zimbabwe ($) 609.506 3.3264 378.000 0.0000 504.460 11.3589 424.338 -5.0126

Macao (Pataca) 12.8744 0.0722 7.9844 0.0012 10.6555 0.2415 8.9631 -0.1045Macedonia (Denar) 75.9304 0.2380 47.0900 -0.1100 62.8441 1.2716 52.8626 -0.7494Madagascar (Ariary) 3619.96 -20.3353 2245.00 -25.0000 2996.07 34.8483 2520.21 -58.1669Madeira (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Malawi (Kwacha) 561.296 24.5607 348.100 13.4050 464.558 27.9473 390.772 10.6099Malaysia (Ringgit) 4.8704 -0.0184 3.0205 -0.0281 4.0311 0.0543 3.3908 -0.0719Maldive Is (Rufiyaa) 24.7189 0.0066 15.3300 -0.0800 20.4587 0.3564 17.2093 -0.2942Mali Rep (CFA Fr) 792.550 -13.8319 491.519 -11.3225 655.957 0.0000 551.773 -19.3786Malta (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Martinique (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Mauritania (Ouguiya) 489.379 2.6708 303.500 0.0000 405.036 9.1200 340.705 -4.0247Mauritius (Maur Rupee) 49.3410 0.0288 30.6000 -0.1500 40.8373 0.7239 34.3511 -0.5762Mexico (Mexican Peso) 20.3855 -0.0848 12.6426 -0.1222 16.8721 0.2205 14.1924 -0.3065Moldova (Leu) 19.6558 0.2275 12.1900 0.0750 16.2682 0.4641 13.6843 -0.0765Monaco (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Mongolia (Tugrik) 2249.37 15.4823 1395.00 2.0000 1861.70 44.5277 1566.01 -16.2273Montenegro (Euro) 1.2083 -0.0211 0.7493 -0.0173 1.0000 0.0000 0.8412 -0.0295Montserrat (E Carib $) 4.3536 0.0238 2.7000 0.0000 3.6033 0.0812 3.0310 -0.0358Morocco (Dirham) 13.5095 -0.1566 8.3782 -0.1437 11.1812 0.0644 9.4053 -0.2743Mozambique (Metical) 47.9705 0.3420 29.7500 0.0500 39.7029 0.9592 33.3969 -0.3377

SDR (SDR) 1.0475 -0.0026 0.6497 -0.0051 0.8670 0.0128 0.7293 -0.0144Oman (Rial Omani) 0.6208 0.0034 0.3850 0.0000 0.5138 0.0116 0.4322 -0.0051

FT GUIDE TO WORLD CURRENCIES

Day’s Mth’s Spread Red Ratings Bid Bid chge chge vs date Coupon S* M* F* price yield yield yield GovtsJan 11

US$Bank of America 01/13 4.88 A- Baa2 A 100.00 4.80 -0.02 3.69 -Goldman Sachs 07/13 4.75 A- A3 A 102.06 0.61 0.02 -0.26 0.51Hutchison 03/33 01/14 6.25 A- A3 A- 105.01 1.30 -0.01 0.01 1.16Misc Capital 07/14 6.13 BBB Baa2 - 106.34 1.70 0.10 -0.24 1.57BNP Paribas 06/15 4.80 A- Baa3 A 102.45 3.74 0.00 0.93 3.49GE Capital 01/16 5.00 AA+ A1 - 111.11 1.19 -0.06 -0.21 0.81Erste Euro Lux 02/16 5.00 AA- - - 97.06 6.07 -0.06 1.93 5.60Credit Suisse USA 03/16 5.38 A+ A1 A 112.68 1.23 -0.01 -0.16 0.67SPI E&G Aust 09/16 5.75 A- A1 A 110.48 2.72 0.01 0.09 2.34Abu Dhabi Nt En 10/17 6.17 A- A3 - 117.88 2.20 0.00 -0.28 1.47Swire Pacific 04/18 6.25 A- A3 A 119.06 2.37 -0.02 0.02 1.57ASNA 11/18 6.95 A- Baa2 A 123.58 2.55 -0.57 -0.42 1.76Codelco 01/19 7.50 A A1 A+ 128.34 2.40 0.01 0.06 1.09Bell South 10/31 6.88 A- WR A 122.96 4.98 -0.01 0.10 3.10GE Capital 01/39 6.88 AA+ A1 - 133.71 4.63 0.02 0.05 1.55Goldman Sachs 02/33 6.13 A- A3 A 118.44 4.70 -0.06 -0.23 1.64

EuroAmer Honda Fin 07/13 6.25 A+ A1 - 102.70 0.76 0.04 -0.01 0.72SNS Bank 02/14 4.63 BBB Baa2 BBB+ 102.77 2.03 -0.04 -0.18 1.93JPMorgan Chase 01/15 5.25 A A2 A+ 108.71 0.83 0.07 0.04 0.71Hutchison Fin 06 09/16 4.63 A- A3 A- 111.52 1.39 0.13 0.22 1.00Hypo Alpe Bk 10/16 4.25 - A1 - 105.34 2.74 0.08 -0.58 2.44GE Cap Euro Fdg 01/18 5.38 AA+ A1 - 117.72 1.65 0.09 0.15 1.06Unicredit 01/20 4.38 BBB+ Baa2 A- 103.74 3.76 -0.01 -0.51 2.75ENEL 05/24 5.25 BBB+ Baa2 BBB+ 105.44 4.62 0.03 -0.24 2.95

YenACOM 51 06/13 2.07 BB+ WR BBB+ 100.42 0.95 -0.02 -0.06 0.86Deutsche Bahn Fin 12/14 1.65 AA Aa1 AA 102.70 0.21 -0.03 -0.03 0.12Nomura Sec S 3 03/18 2.28 - - - 100.53 2.17 -0.03 0.02 1.99

£ SterlingSlough Estates 09/15 6.25 - - A- 110.13 2.32 -0.02 0.07 1.86ASIF III 12/18 5.00 A+ A2 A 112.20 2.72 0.02 -0.28 1.30

US $ denominated bonds NY close; all other London close. S* - Standard & Poor’s, M* - Moody’s, F* - Fitch. Source: ThomsonReuters

BONDS - GLOBAL INVESTMENT GRADE Red Bid Bid Day chg Wk chg Month Year Date Coupon Price Yield yield yield chg yld chg yldJan 11

London close. Source: ThomsonReutersYields: Local market standard Annualised yield basis. Yields shown for Italy exclude withholding tax at 12.5 per cent payable by non residents.

Australia 10/14 4.50 102.91 2.79 0.06 0.01 0.12 -0.46 04/23 5.50 117.44 3.47 0.07 0.02 0.29 -0.45Austria 10/14 3.40 105.65 0.18 0.03 0.03 0.16 -1.14 11/22 3.40 113.58 1.88 0.04 -0.03 0.15 -1.47Belgium 09/14 4.25 106.74 0.27 0.02 0.12 0.17 -2.19 09/22 4.25 117.84 2.19 -0.01 -0.02 0.07 -2.28Canada 02/15 1.00 99.60 1.20 0.03 0.01 0.14 0.23 06/22 2.75 106.80 1.95 0.05 0.02 0.25 -0.04Denmark 11/16 2.50 108.34 0.31 0.11 0.11 0.49 0.13 11/23 1.50 98.42 1.66 0.12 0.12 0.35 -0.09Finland 09/14 3.13 104.98 0.12 0.06 0.06 0.17 -0.20 09/22 1.63 98.65 1.78 0.10 0.07 0.20 -0.55France 10/14 4.00 106.76 0.18 0.04 0.05 0.12 -0.59 10/17 4.25 115.72 0.87 0.06 0.04 0.21 -1.29 10/22 2.25 100.94 2.14 0.03 0.02 0.18 -1.11 04/41 4.50 124.45 3.18 0.04 0.02 0.14 -0.72Germany 12/14 - 99.74 0.14 0.08 0.08 0.21 -0.03 02/18 0.50 99.32 0.64 0.18 0.17 0.33 -0.19 09/22 1.50 99.27 1.58 0.11 0.10 0.28 -0.30 07/44 2.50 100.86 2.46 0.11 0.11 0.22 -0.01Greece 02/23 2.00 49.20 11.73 0.06 0.38 -2.44 -22.54 02/33 2.00 39.71 10.67 0.06 0.16 -2.46 -Ireland 10/17 5.50 110.50 3.09 -0.12 -0.13 -0.33 -4.20 10/20 5.00 104.46 4.31 -0.11 -0.16 -0.43 -3.80Italy 11/14 6.00 108.30 1.39 -0.19 -0.31 -0.98 -3.61 11/17 3.50 103.29 2.78 -0.23 -0.24 -0.96 -3.66 11/22 5.50 111.24 4.14 -0.14 -0.11 -0.70 -3.05 09/40 5.00 102.16 4.92 -0.05 -0.01 -0.56 -2.21Japan 01/15 0.10 100.03 0.08 -0.02 -0.02 -0.01 -0.05 12/17 0.20 100.15 0.17 -0.04 -0.01 0.01 -0.17 12/22 0.80 99.86 0.82 -0.01 0.03 0.12 -0.16 12/32 1.70 98.61 1.80 -0.01 0.04 0.14 0.04Netherlands 07/14 3.75 105.43 0.11 0.04 0.01 0.11 -0.17 07/22 2.25 104.38 1.75 0.09 0.04 0.22 -0.51New Zealand 04/15 6.00 107.46 2.56 0.02 -0.08 -0.04 0.05 04/23 5.50 116.69 3.54 0.00 -0.08 -0.07 -0.34Norway 05/17 4.25 110.95 1.61 0.12 0.08 0.08 0.42 05/23 2.00 96.87 2.34 0.16 0.17 0.20 0.35Portugal 10/14 3.60 100.22 3.46 -0.54 0.16 -0.59 -8.69 10/23 4.95 90.25 6.22 -0.33 -0.22 -1.43 -6.82Spain 10/14 3.30 101.95 2.18 -0.28 -0.33 -1.00 -1.25 01/22 5.85 106.83 4.90 -0.24 -0.12 -0.70 -0.61Sweden 08/15 4.50 108.97 0.95 0.08 0.04 0.27 -0.03 06/22 3.50 114.27 1.83 0.12 0.16 0.40 0.14Switzerland 06/15 3.75 109.25 -0.10 0.03 0.02 0.06 -0.14 02/23 4.00 132.25 0.68 0.09 0.17 0.29 -0.02UK 03/14 2.25 102.13 0.38 -0.01 -0.07 0.09 -0.05 09/17 1.00 99.99 1.00 0.04 -0.03 0.23 -0.09 09/22 1.75 97.19 2.07 0.03 0.00 0.31 0.01 12/42 4.50 123.04 3.28 0.06 -0.02 0.14 0.18US 12/14 0.13 99.76 0.25 0.00 -0.02 0.01 0.00 12/17 0.75 99.84 0.78 0.02 -0.03 0.17 -0.07 11/22 1.63 97.78 1.87 0.02 -0.03 0.26 -0.10 11/42 2.75 94.08 3.05 0.00 -0.05 0.25 0.03

BONDS - BENCHMARK GOVERNMENT US yield curve

months YearsTomaturity

TodayOne week ago

One month ago

Per cent

1 3 6 2 3 5 10 30

Spread Spread Bid vs vs Yield Bund T-BondsJan 11

Spread Spread Bid vs vs Yield Bund T-Bonds

Australia 3.47 +1.88 +1.59Austria 1.88 +0.30 +0.00Belgium 2.19 +0.61 +0.32Canada 1.95 +0.37 +0.08Denmark 1.66 +0.08 -0.21Finland 1.78 +0.20 -0.10France 2.14 +0.56 +0.27Germany 1.58 - -0.29Greece 11.73 +10.15 +9.86Ireland 4.31 +2.73 +2.44Italy 4.14 +2.55 +2.26Japan 0.82 -0.77 -1.06

Netherlands 1.75 +0.16 -0.13New Zealand 3.54 +1.96 +1.67Norway 2.34 +0.76 +0.47Portugal 6.22 +4.63 +4.34Spain 4.90 +3.31 +3.02Sweden 1.83 +0.25 -0.04Switzerland 0.68 -0.91 -1.20UK 2.07 +0.49 +0.20US 1.87 +0.29 -

Yields: annualised basis. Source: ThomsonReu-ters Selection made by ThomsonReuters.

BONDS - TEN YEAR GOV’T SPREADS

Day’s Mth’s Spread Red Ratings Bid Bid chge chge vs date Coupon S* M* F* price yield yield yield USJan 11

High Yield US$HSBK Europe 05/13 7.75 BB Ba3 BB- 101.44 3.22 -0.07 0.23 3.14Kazkommerts Int 04/14 7.88 B+ Caa1 B 100.35 7.55 - -1.05 7.26Bertin 10/16 10.25 BB B1 - 110.28 7.05 -0.03 -0.20 6.50

High Yield EuroRoyal Carib Crs 01/14 5.63 BB Ba1 - 101.34 4.26 -0.01 - 4.23Kazkommerts Int 02/17 6.88 B+ Caa1 B 95.26 8.29 -0.49 -2.19 7.92

Emerging US$Bulgaria 01/15 8.25 BBB Baa2 BBB- 113.25 1.49 -0.13 0.09 1.24Peru 02/15 9.88 BBB Baa2 BBB 117.87 1.06 -0.02 -0.49 0.81Brazil 03/15 7.88 BBB Baa2 BBB 114.15 1.17 -0.01 -0.09 0.91Mexico 09/16 11.38 BBB Baa1 BBB 136.95 1.06 -0.04 -0.15 0.69Philippines 01/19 9.88 BB+ Ba1 BB+ 143.12 2.17 0.05 0.21 0.87Brazil 01/20 12.75 BBB Baa2 BBB 169.11 2.08 0.00 -0.05 0.78Colombia 02/20 11.75 BBB- Baa3 BBB- 159.90 2.50 0.00 0.12 1.20Russia 03/30 7.50 BBB Baa1 BBB 127.27 2.67 0.04 -0.07 1.87Mexico 08/31 8.30 BBB Baa1 BBB 158.47 3.86 0.07 0.09 1.96Indonesia 02/37 6.63 BB+ Baa3 BBB- 132.50 4.42 0.07 0.15 1.33

Emerging EuroBrazil 02/15 7.38 BBB Baa2 BBB 113.89 0.54 0.01 -0.02 0.40Poland 02/16 3.63 A- A2 A- 107.88 0.98 0.07 0.06 0.76Turkey 03/16 5.00 BB Ba1 BBB- 108.45 2.17 0.11 0.02 1.94Mexico 02/20 5.50 BBB Baa1 BBB 120.12 2.38 -0.02 -0.08 1.36

US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch. Source: ThomsonReuters

BONDS - HIGH YIELD & EMERGING MARKET

Overall (£) 1093 253.61 0.02 -1.37 -1.37 -1.00 4.53Overall ($) † 3262 216.10 -0.10 -0.36 -0.36 -0.36 -0.36Overall (€) 2276 192.09 -0.05 -0.24 -0.24 0.37 10.96Global Inflation-Lkd † 97 250.75 1.75 0.28 0.28 0.92 9.41Gilts (£) 33 255.10 -0.02 -1.88 -1.88 -1.60 1.03Corporates (£) 703 256.87 0.15 0.14 0.14 0.81 15.01Corporates ($) † 2111 237.28 -0.05 -0.09 -0.09 -0.09 -0.09Corporates (€) 1196 191.58 -0.10 -0.33 -0.33 0.16 12.52Treasuries ($) † 156 208.61 -0.15 -0.53 -0.53 -0.53 -0.53Eurozone Sov (€) 261 191.53 - -0.17 -0.17 0.62 11.22ABF Pan-Asia unhedged 541 179.37 0.14 0.43 0.43 0.68 8.26

Day’s Month’s Year Return Return Index change change change 1 month 1 year

Sterling Corporate (£) 72 110.45 0.10 -0.70 3.68 -0.25 8.93Euro Corporate (€) 305 107.06 -0.07 -0.36 6.83 -0.01 11.14Euro Emerging Mkts (€) 11 96.21 0.02 0.23 9.47 0.68 15.18Eurozone Gov’t Bond 234 105.09 0.01 0.49 7.88 0.81 11.82

Emerging Markets 5Y 214.45 5.88 21.80 2.99 257.25 192.65Nth Amer Inv Grade 5Y 86.28 -0.47 0.57 -8.16 111.25 84.95Nth Amer High Yld 5Y 437.42 -7.74 -6.78 -40.01 572.12 437.42Nth Amer HiVol 5Y 182.68 -0.14 -1.58 -13.41 226.49 180.67

Europe 5Y 101.99 -0.60 -2.49 -13.21 141.39 101.99Crossover 5Y 422.50 -0.33 -8.28 -41.35 581.00 418.53HiVol 5Y 153.06 -0.67 -3.36 -21.98 211.37 153.06Japan 5Y 137.11 -0.72 -11.39 -34.32 227.22 137.11SovX CEEMEA 5Y 154.02 3.32 4.85 -10.13 231.44 149.17SovX Western Europe 5Y 96.95 -1.66 -4.19 -16.74 148.75 96.95

Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. †

Markit iBoxx

FTSE

Markit iTraxx

Markit CDX

CREDIT INDICES

Jan 11

Jan 11

Jan 11

Jan 10

Jan 10

BOND INDICES

Day’s Week’s Month’s Series Series Index change change change high low

Price Yield Month Break even Value No of return inflation* Stock Market stksCan 4.25% ’21 139.21 -0.13 -0.17 -1.11 2.15 5.2 65.0 6Fr 2.25% ’20 118.46 -0.18 -0.19 -0.50 1.58 20.0 183.4 13Swe 0.25% ’22 101.46 0.20 0.16 -1.51 1.59 16.8 235.8 5UK 2.5% ’16 345.51 -2.02 -1.66 0.59 2.72 7.9 347.9 21UK 2.5% ’24 343.97 -0.73 -0.40 1.37 3.04 6.8 347.9 21UK 2% ’35 206.37 -0.15 0.10 1.54 3.28 9.1 347.9 21US 0.625% ’21 113.11 -0.86 -0.89 -0.63 2.42 35.8 969.5 33US 3.625% ’31 156.78 -0.07 -0.12 -1.17 2.59 16.8 969.5 33

Representative stocks from each major market Source: Merill Lynch Global Bond Indices* Diff between conventional and IL bond. † Local currencies. ‡ Total market value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par amount.

Jan 10 Jan 10 Jan 9

BONDS - INDEX-LINKED

Over Change One Three Six One night Day Week Month month month month yearUS$ Libor* 0.15950 -0.005 -0.007 -0.003 0.20570 0.30400 0.49600 0.82100Euro Libor* 0.01357 - - - 0.05286 0.13214 0.22929 0.44929£ Libor* 0.48000 - - - 0.49250 0.51250 0.66375 1.00313Swiss Fr Libor* -0.00200 0.004 0.012 0.010 -0.00400 0.01600 0.07140 0.25640Yen Libor* 0.08929 -0.001 -0.001 -0.006 0.12800 0.17214 0.27943 0.47857Canada Libor* 0.95900 0.002 -0.003 0.001 1.05400 1.23300 1.52300 1.94600Euro Euribor - - - - 0.11 0.20 0.33 0.56Sterling CDs - - - - 0.46 0.49 0.63 0.98US$ CDs - - - - 0.13 0.21 0.33 0.52Euro CDs - - - - -0.05 0.00 0.10 0.24US o’night repo 0.19 0.020 -0.040 -0.070Fed Funds eff 0.14 -0.010 -0.030 -0.020US 3m Bills 0.07 0.010 - -0.015SDR int rate 0.03 - - -0.040EONIA 0.069 - 0.003 -EURONIA 0.0116 0.007 0.008 0.000RONIA 0.4575 -0.010 0.005 -0.024SONIA 0.4027 -0.025 -0.023 -0.028LA 7 Day Notice 0.31-0.26

Interbank £ 0.49-0.31 0.50-0.40 0.53-0.43 0.62-0.52 0.88-0.78 1.09-0.99

Over One One Three Six One night Week months months months year

*Libor rates come from BBA (see www.bba.org.uk) and are fixed at 11am UK time. Other data sour-ces: US $, Euro & CDs: dealers; SDR int rate: IMF; EONIA: ECB; EURONIA, RONIA & SONIA: WMBA. LA 7 days notice: Tradition (UK).

Jan 11

INTEREST RATES - MARKET

Euro 0.04 - -0.02 0.08 - -0.01 0.14 - 0.02 0.24 - 0.04 0.35 - 0.20 0.69 - 0.43Danish Krone 0.05 - -0.15 -0.16 - -0.27 -0.04 - -0.24 0.04 - -0.16 0.17 - -0.03 0.40 - 0.20Sterling 0.51 - 0.41 0.51 - 0.41 0.76 - 0.48 0.63 - 0.53 0.77 - 0.60 0.92 - 0.75Swiss Franc 0.09 - -0.11 0.08 - -0.12 0.03 - -0.18 0.10 - -0.20 0.20 - -0.10 0.35 - 0.05Canadian Dollar 1.05 - 0.95 1.12 - 0.92 1.18 - 0.98 1.30 - 1.15 1.47 - 1.32 1.81 - 1.66US Dollar 0.24 - 0.14 0.33 - 0.23 0.38 - 0.28 0.30 - 0.20 0.61 - 0.51 1.00 - 0.80Japanese Yen 0.15 - 0.05 0.10 - -0.02 0.13 - 0.01 0.30 - 0.05 0.22 - 0.10 0.41 - 0.29Singapore $ 0.03 - 0.01 0.35 - 0.15 0.31 - 0.06 0.38 - 0.14 0.44 - 0.19 0.56 - 0.31

Source: Reuters. Short term rates are call for the US Dollar and Yen, others: two day’s notice.

Short 7 days One Three Six One term notice month month month yearJan 11

Rate Current Since Last Mth ago Year ago

USUSUSEuroUKJapanSwitzerland

Fed Funds Prime Discount Repo Repo O’night Call Libor target

Source: ThomsonReuters

0.00-0.25 16-12-2008 1.00 0.00-0.25 0.00-0.25 3.25 16-12-2008 4.00 3.25 3.25 0.75 18-02-2010 0.50 0.75 0.75 0.75 05-07-2012 1.00 0.75 1.00 0.50 05-03-2009 1.00 0.50 0.50 0.00-0.10 05-10-2010 0.10 0.00-0.10 0.00-0.10 0.00-0.25 03-08-2011 0.00-0.75 0.00-0.25 0.00-0.25

Jan 11

INTEREST RATES - OFFICIAL

The data and prices listed are indicative and, while believed to be accurate at the time of publication, the FT does not warrant or guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any loss arising from the reliance on or use of the information.

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Trading and sales updateTaylor Wimpey

Shareholder meetingXchanging

TUESDAY 15●Michael Page has alreadywarned that it willundershoot full-year profitexpectations for 2012, soinvestors will be eager toknow whether the white-collar recruiter’sperformance improved inthe last quarter, writesVanessa Kortekaas.

In October the financialand legal placementspecialist said it wouldcontinue to cut staff andother costs as long aseconomic conditionsdragged down fees in someof the markets in which itoperates.

Two of its rivals, Haysand Robert Walters,signalled a subdued startto the year by saying theywould also look to cutcosts further.

Michael Page has beenhit harder by the eurozonecrisis than some of itspeers because of its biggerexposure to Europe – andthere may be questionsraised if its Frenchbusiness has not improved,after declining almost 20per cent in the thirdquarter.

Analysts’ consensusforecast for full-yearadjusted pre-tax profit is£65m, compared withthe £86m it generated in2011.

EarningsIG Group Holdings H1 n/a(20.68p)

Trading and sales updatesAshmoreBurberryGeberitHalfordsHennes & MauritzMichael Page InternationalOcadoRio TintoSpirit Pub Company

Shareholder meetingSpirit Pub Company

WEDNESDAY 16EarningseBay Q4 $0.69 ($0.60)Goldman Sachs Q4 $3.60($1.84)JPMorgan Chase Q4US Bancorp Q4 $0.75 ($0.64)

Trading and sales updatesBarratt DevelopmentsBloomsbury PublishingDiplomaExperian

Jupiter Fund ManagementMetroN Brown GroupStobart Group

Shareholder meetingsDiplomaFennerRandstad Holding

THURSDAY 17●Jitters about Carrefour’sfourth-quarter salesnumbers have already hitthe shares of Europe’sbiggest retailer by sales,dragging them down lastweek in anticipation of adisappointment in itsFrench hypermarketsbusiness amid a tough run-up to Christmas for Frenchretailers, writesScheherazade Daneshkhu.

Third-quarter sales of€22.6bn were higher thanthe same quarter in 2011,including in France, whichaccounts for 40 per cent oftotal sales. The home baseis what Georges Plassat,who has yet to reach hisfirst anniversary as chiefexecutive, has vowed to fixas part of his three-yearturnround for theunderperforming retailer.

The news flow since hetook over in May has beenpositive, helping to accountfor the stock’soutperformance against theCAC 40 index ofleading French companies

over the past year.Comparisons with last yearwill be distorted by thequick fire sell-off ofinternational markets lastyear, including Colombia,Greece and Malaysia.

●Intel is expected toreport stagnating revenuesand diminishing marginswhen it reveals fourth-quarter earnings, withunderutilised factories andinventory write-offs toblame, writes ChrisNuttall.

The world’s biggestchipmaker warned asmuch three months agowhen it said orders weredropping in tougheconomic conditions.

Its core PC processor

business is struggling inthe face of poor sales forcomputer manufacturers.The IDC research firmsaid last week that globalPC shipments fell 6.4 percent year on year in thefourth quarter to 89.8munits – worse than itsforecast decline of 4.4 percent.

Intel may be moreoptimistic in its outlook for2013. It unveiled its next-generation Core processor,available by the summer,last week at the ConsumerElectronics Show in LasVegas and said its latestchips would mean thinnerlaptops with all-day batterylife, with prices becomingmore affordable for themainstream consumer.

Analysts expect earningsper share of 45 cents on$13.77bn in revenues, down30 per cent and 1 per centrespectively on a year ago.

EarningsAmerican Express Q4 $1.06($1.01)ASML Holding Q4 €0.59(€0.88)BB&T Q4 $0.70 ($0.55)Bank of America Q4 $0.18($0.15)BlackRock Q4 $3.68 ($3.06)Capital One Financial $1.63($0.88)Citigroup Q4 $0.98 ($0.38)Fifth Third Bancorp Q4$0.42 ($0.34)

Intel Q4 $0.45 ($0.64)Trading and sales updatesAberdeen AssetManagementAccorAssociated British FoodsASOSCarrefour

ComputacenterDixons RetailHome Retail GroupPhilipsMothercarePremier Oil

Shareholder meetingsAberdeen AssetManagementKesa Electricals

FRIDAY 18●General Electric, thelargest US industrial groupby market capitalisation,reports full-year resultsthat are expected to showrespectable growth, writesEd Crooks.

The European crisis,China’s slowdown andpolitical uncertainty in theUS hit the company’sgrowth last year, its chiefexecutive Jeff Immelt hassaid, and its guidance isthat revenues rose by3 per cent to about$146.5bn.

Earnings per share,however, are thought tohave performed better,rising 10 per cent to $1.50,according to consensusforecasts.

GE has said it achievedcost savings of $1bn lastyear, helping to drivemargins up by 0.3percentage points, andexpects a further marginincrease this year.

Its shares, which hadbeen outperforming theS&P 500 for much of lastyear, have underperformedsignificantly over the pastthree months, as thecompany detailed theeffect of the globaleconomic slowdown on itsbusiness.

Scott Davis of Barclayssaid last week he believedthat the movement was“an overreaction”, andargued that the company’sgrowth would be supportedby favourable influencesincluding rising demandfor gas-fired power plantsand a pick-up in the worldeconomy.

EarningsGE Q4 $0.43 ($0.39)Schlumberger Q4 $1.08($1.11)State Street Q4 $1.00 ($0.93)SunTrust Banks Q4 $0.63($0.28)

Trading and sales updateBovis Homes

Shareholder meetingsGW PharmaceuticalsThyssenKrupp

M&A and trade flurry to lift US banksEarnings from Wall Street’s big fivefinancial groups this week should showthe benefit of an unseasonal flurry intrading activity, as investors flitted inand out of the market ahead of the fiscalcliff in the usually quiet fourth quarter,and amid stronger mergers andacquisitions, writes Tom Braithwaite.

Analysts at Barclays are predictingGoldman Sachs will slash pay, helpingits net income climb 78 per cent year onyear to $1.8bn, and Morgan Stanleywill move to a slim profit from a losslast year.

In retail banking, fees from mortgages

sold by JPMorgan Chase, Bank ofAmerica and Citigroup should beboosted by the continued bout ofrefinancing, though investors willbe looking for any signs it is tailingoff.

And net interest margins, down totheir lowest level in living memory, arealso a concern.

Analysts at Morgan Stanley forecast asurge in litigation expenses at JPMorganwill dampen improved underlyingearnings, with fourth-quarter earningsper share of 98 cents up from 90 cents ayear earlier. Photo: Reuters

Diary commentary from FTreporters. Data, unless otherwisestated, from Thomson Reuters.Company announcements, collatedby Thomson Streetevents, are ofinformation publicly available beforelast week. Results forecasts, fromThomson I/B/E/S, are for fullydiluted, post-tax EPS in localcurrency for the stated fiscal period.The comparable period of theprevious year is bracketed.Non-UK reporting periods arebroken by quarter: Q1, Q2, Q3, Q4.UK periods are designated: Q1, H1(first half), Q3 and FY (full year).

Retailers’ performancesset for window displayBy Michael Hunter

Retail sales and inflationdata will return to the fore-front of attention this week,while traders will also getfourth-quarter growth datafrom China and a chance tolisten to Ben Bernanke,chairman of the FederalReserve.

Mr Bernanke will speakabout monetary policy, therecovery from the globalfinancial crisis and long-term challenges facing theUS economy at theUniversity of Michigantoday.

He will take questionsfrom the public audience atthe event, and from Twittervia the hashtag #ford-schoolbernanke. The eventis scheduled to last an hour-and-a-half from 9pm Londontime.

December retail salesdata from the US, due onTuesday, look likely to bedisappointing.

A survey in the run-up tothe release of the data byRoyal Bank of CanadaCapital Markets found 43per cent of consumers saidthey spent less in December2012 than a year earlier,with only 21 per cent spend-ing more.

The data also look vulner-able to a tendency towardheavy discounting in theperiod.

“Keep in mind the retailsales number is nominaland thus heavy price cutscould impact this . . . in anon-trivial way even ifvolumes were decent,”warned Michael Cloherty,head of US rates strategy atRBC.

UK retail sales, due outon Friday, will offer insightinto the broad performanceof the UK high street dur-ing December.

The picture created byindividual trading updatesfrom high street stocks hasbeen mixed overall, with atrend for growth in internetsales offsetting strainedoffline trading conditions.The fresh data are expectedto show sales growth of0.1 per cent month onmonth.

UK consumer price infla-tion for December, due onTuesday, is expected to rise2.6 per cent year on year, a0.5 per cent increase fromNovember.

Back in the US, the pro-ducer price index forDecember is expected toshow a fall of 0.1 per cent,

from a fall of 0.8 per cent inthe previous month.

Consumer price inflation,out on Wednesday, is alsoexpected to be tame, helpedby discounting retailers andsofter petrol prices.

With inflation currentlyseen as secondary to thelabour market in shapingthe Federal Reserve’s pol-icy, the data are unlikely toloom too large.

German growth figuresfor 2012 will confirm whatkind of a year the euro-zone’s biggest economy had.They are expected to showan unadjusted expansion in

gross domestic product of0.75 per cent, in line withcurrent impressions of itsperformance.

In the wider eurozone,Monday’s industrial produc-tion data for November isexpected to have incheddown by 0.1 per cent month-on-month, leaving worriesabout the outlook for thecurrency group’s economicperformance in the fourthquarter in place.

China is due to release itsfourth-quarter growth dataon Friday. They areexpected to show year-on-year growth of 7.4 per cent.

4CAST economic calendarCountry For Indicator Unit* Mkt* Prev*

MondayEurozone Nov Industrial production 1 0.2 -1.4Eurozone Nov Industrial production 2 -3.1 -3.6Germany Dec Wholesale price index 1 0.1 -0.7Germany Dec Wholesale price index 2 3.3 3.2India Dec WPI 2 7.37 7.24Japan Dec M2 Money Supply 2 2.1 2.1TuesdayEurozone Nov Trade balance (NSA) 3 11.0 10.2Germany Dec CPI (final) 1 0.9 0.9Germany Dec CPI (final) 2 2.1 2.1Germany Dec HICP (final) 1 1.0 1.0Germany Dec HICP (final) 2 2.1 2.1

Germany 2012 GDP (NSA) (annual growthrate) 2 0.8 3.0

Japan Dec CGPI 2 -0.7 -0.9Japan Nov Key machinery orders 1 0.3 2.6Japan Nov Key machinery orders 2 -7.3 1.2UK Dec CPI 1 0.5 0.2UK Dec CPI 2 2.7 2.7UK Dec Input prices (unadjusted) 1 -0.1 0.1UK Dec Input Prices (unadjusted) 2 0.3 -0.3UK Nov ONS house prices 2 1.6 1.5UK Dec Output prices (unadjusted) 1 0.0 -0.2UK Dec Output prices (unadjusted) 2 2.4 2.2

UK Dec Output prices core(unadjusted) 1 0.1 0.0

UK Dec RICS house price balance % -8.0 -9.0US Nov Business inventories 1 0.3 0.4US Jan Empire State Survey -1.0 -8.1US Dec PPI 1 -0.1 -0.8US Dec PPI (ex-food and energy) 1 0.2 0.1US Dec Retail sales 1 0.2 0.3US Dec Retail sales (ex-auto) 1 0.2 0.0WednesdayEurozone Dec HICP - core (final) 2 1.5 1.4Eurozone Dec HICP (final) 1 0.3 -0.2Eurozone Dec HICP (final) 2 2.2 2.2Japan Dec Consumer confidence n/a 39.4Japan Nov METI tertiary activity index 1 0.1 -0.1US Dec Capacity utilisation % 78.5 78.4US Dec CPI 1 0.0 -0.3US Dec CPI (ex-food and energy) 1 0.2 0.1US Dec Industrial production 1 0.2 1.1US Jan NAHB builders survey 48 47US Nov Net long-term TICS flows 3 n/a 1.3ThursdayUS Dec Building permits 5 904 900US Dec Housing starts 5 890 861US Week Initial claims 5 368 371US Jan Philadelphia Fed survey 5.6 4.6FridayCanada Nov Manufacturing sales 1 0.4 -1.4China Dec Industrial production 2 10.2 10.1China Q4 Real GDP 2 7.8 7.4China Dec Retail sales 2 15.0 14.9

China Dec Urban fixed assetinvestment 2 20.7 20.7

Japan Nov Capacity utilisation 1 n/a 1.6Japan Nov Industrial production (final) 1 n/a -1.7Japan Nov Industrial production (final) 2 n/a -5.8UK Dec Retail sales (ex-auto fuel) 1 0.1 0.1UK Dec Retail sales (ex-auto fuel) 2 2.0 2.0UK Dec Retail sales (inc-auto fuel) 1 0.2 0UK Dec Retail sales (inc-auto fuel) 2 1.0 0.9

US Jan Univ of Mich sentiment(prelim.) 75.0 72.9

Mkt* = market consensus estimates. Prev* = previous actual.Units* 1 = % change on previous period; 2 = % change on sameperiod in previous year; 3 = national currency bn; 4 = annualisedquarterly % change; 5 = 000s NSA non-seasonally adjustedSee more at http://www.ft.com/economic-calendar

TODAYColombia peace talksDelegates for thegovernment of Colombiaand Farc guerrillas, lockedin negotiations to try toend the country’s 50-yearwar and Latin America’slongest ongoing armedconflict, are due to resumepeace talks in Havana,Cuba. The secret talks aregoing well, according toboth sides. Negotiationsstarted with discussion onland access and agrarianreform. Also on the agendaare illegal drugs, politicalparticipation, disarmamentand reparations forvictims. Rebels havedeclared a two-monthceasefire until January 20.

Cuban travel easedCuba scraps travelrestrictions, making iteasier for its citizens toleave the communist-ruledisland. The decisionreverses tough restrictionsimposed in 1961 when thegovernment tried to haltmass migration of citizensfleeing after the 1959revolution that put FidelCastro in power.

Asian financial axisThe sixth Asian FinancialForum, at the Hong KongConvention and ExhibitionCentre (to January 15),discusses developmentsand trends in the dynamicmarkets of Asia. A keynotespeaker is former USTreasury secretary LarrySummers.

Poetry prize-winnerThe 20th anniversaryT.S. Eliot Prize, sponsored

by the Poetry BookSociety, is presented inLondon. Poet laureateCarol Ann Duffy chairs thejudging panel, joined bypoets Michael Longley andDavid Morley. They chosesix collections from the 131books submitted, whichjoined four society choicesto make up the 10 on theshortlist.

EU issues airedThe European Parliamentmeets in Strasbourg (untilJanuary 17) to vote onissues including bankingsupervision, the capitalrequirements directive,rating agencies andstability bonds.

Orthodox new yearOrthodox Christianscelebrate the new year,also known as the old newyear from the Juliancalendar, with blessings orcommunal meals.

Hindu pilgrimageHundreds of thousands ofHindu pilgrims performrituals and take a holy dipin the ocean where theGanges meets the Bay ofBengal, in India’s east.

Norwegian screeningsThe 23rd TromsöInternational Film Festival,takes place in the northernNorwegian town. Norway’slargest festival for film-goers, filmmakers, mediaand others sees more than50,000 people attendscreenings.

TUESDAY 15Eritrea under scrutinyHuman Rights Watchreleases a report onEritrea, presentingevidence that internationalmining companies riskcomplicity in theexploitation of forced

labour by state-ownedEritrean contractors. Itsays the country, whichmarked 20 years ofindependence in 2011,is run by one of theworld’s mostrepressive governments.

Bankers’ gatheringThe Vienna Hilton hoststhe 18th EuromoneyCentral and EasternEuropean Forum (toJanuary 16). The forumbrings together about 1,000leading issuers, foreign anddomestic investors,governments, centralbanks, local entrepreneursand world class economiststo discuss the region’sagenda for the coming 12months.

UAE water worksThe inauguralInternational WaterSummit in Abu Dhabiwill be held (until January17) alongside the 2013World Future EnergySummit and the AbuDhabi InternationalRenewable EnergyConference. Solutions forsome of the world’s mostwater-scarce regions arediscussed.

Classic rally reshapedThe Monte Carlo Rally, theopening round of theWorld Rally Championship,runs until January 20. Thefirst two days feature arally round the city ofValence and this year itincludes a new stage, SaintNazaire le Désert to LeMotte Chalancon. Nine-times world rally championSébastien Loeb, the 38-year-old Frenchman who drivesfor Citroën, will becompeting.

WEDNESDAY 16Power playersThe United States EnergyAssociation holds its ninthannual State of the EnergyIndustry Forum, inWashington.

Asean affairsThe foreign ministers ofthe 10-member Associationof Southeast Asian Nationshold a retreat in BandarSeri Begawan, Brunei,until January 18.

THURSDAY 17UN role in CyprusThe UN Security Councildebates Cyprus and Darfur.The agenda is due toinclude a meeting of troop-

contributing countries tothe Cyprus mission. Thecouncil is expected torenew the mandate of theCyprus peacekeeping forcefor a further six months.

Desert dream carsAuction house Bonhamssells the Oldenburgcollection of more than 30cars from the prominenthorse breeding family, at asale in Scottsdale, Arizona.

FRIDAY 18Viking invasion‘Vikings!’ opens at theNational Museum ofScotland, Edinburgh, withmore than 500 objects fromthe Swedish HistoryMuseum in Stockholm.

FT ReportThe President’s NewChallenge

SATURDAY 19Dubai meetingThe 2013 annualInternational Conferenceon Government, Law andCulture is in Dubai.

African football feastThe 29th Football AfricaCup of Nations, thefootball championshiporganised by theConfederation of AfricanFootball, kicks off in SouthAfrica. Sixteen teams chasea place in the final atSoccer City, Johannesburg,on February 10.

SUNDAY 20Austrian referendumAustria, one of the fewEuropean countries thatstill has compulsorymilitary service, holds areferendum on whether toabolish it.

Compiled bySimon Greaves

preview@ft.comTuesday: Sébastien Loeb will be at the wheel in Valence Getty

WEEK AHEAD ONLINEFor more features go towww.ft.com/weekahead

UK/INTERNATIONAL

FTfmBlackRockpredictshuge ETFgrowthBy Chris Flood

BlackRock, which empha-sised its determination todominate the exchangetraded funds (ETF) marketwith the acquisition lastweek of Credit Suisse’s ETFarm, says European listedETF assets will double overthe next three years tosome $700bn.

Joe Linhares, Europeanhead of iShares, Black-Rock’s ETF unit, said ETFsonly represented a tiny frac-tion of the assets held bymutual funds in Europe butthat share would increaserapidly because growingnumbers of retail investorswere becoming aware of thebenefits of ETFs.

“Interest in ETFs inEurope by retail investorsand wealth managementfirms is just coming alive,”said Mr Linhares.

Investors ploughed$33.2bn of new cash intoEuropean ETFs in 2012, anincrease of 35 per cent onthe previous year. Inflowsthis year, said Mr Linhares,could reach $50bn.

The Credit Suisse deal isBlackRock’s second acquisi-tion in Switzerland in thelast 12 months. It acquiredSwiss Re Private EquityPartners for an undisclosedsum in July 2012.

Both transactions fol-lowed the appointment ofPhilipp Hildebrand, formerchairman of the SwissNational Bank, as Black-Rock vice-chairman.

Comment, Page 6

PGGM teamdefects tofix ‘broken’fund market

An investment team thathas defected from PGGM,the Dutch pension scheme,will launch today with aclaim it can pioneer “a newway of investing” bybypassing the “broken”incentive structures of thefund industry.

Amsterdam-based Owner-ship Capital will be run byan eight-strong team thatmanaged a €3bn “responsi-ble” equity portfolio atPGGM, the €128bn health-care pension scheme.

The team is headed byAlex van der Velden, thefounder and former chiefexecutive of FairPensions, acharity that aims to pro-mote responsible invest-ment by encouraging share-holder activism.

Ownership Capital will bechaired by Sir George Buck-ley, the former chief execu-tive of 3M, the US industrialconglomerate, and cur-

rently chairman of privateequity house Arle CapitalPartners and a director ofPepsiCo, Hitachi, StanleyBlack & Decker and ArcherDaniels Midland.

“There is a pressing needfor shareholder engagementand a sustainable approachto business in the currentturbulent economic envi-ronment,” said Sir George.

“The chance to chase aquick dollar, and the fear ofnot doing so, has distractedinvestors in the past, oftento the detriment of long-term growth and goodreturns, and this simply hasto change if we’re to get theeconomy back on track.”

Ownership Capital claimsto be the first house to pulltogether a series of trendsthat are emerging acrossthe mutual fund industry inan attempt to create more“responsible” longer-terminvestment.

Environmental, socialand governance factors willbe built into the stock selec-tion process, alongside tra-ditional financial analysis,and the fund managers willactively engage with all ofthe portfolio companies “ina close partnership”.

The fund will be highlyconcentrated, with poten-tially around 20 stocks,compared to more than 100

in many equity funds. Andat a time when annual turn-over in mutual funds hasrisen above 100 per cent, itwill aim to hold stocks forseveral years – with inves-tors having to lock-up theirmoney for five years aswell. “If you know yourmoney can be taken awayfrom you at any time thenyou can’t be a long-terminvestor,” argued Mr vander Velden.

“Institutional investorsare willing to lock-upmoney for 10 years in pri-vate equity. But in publicequity, which is muchlower risk, they have

always wanted to get theirmoney back straight away.”

A number of investmenthouses, such as GenerationInvestment Management,chaired by former US vice-president Al Gore, Fund-smith and Governance forOwners have adoptedmany, but not all, of theseelements. This long-term,engaged approach isattuned with the broaderpolitical and regulatoryzeitgeist as espoused by theUN Principles for Responsi-ble Investment and the KayReview of UK Equity Mar-kets and Long-Term Deci-sion Making.

However Mr van derVelden said the concept wasoriginally advocated in the1930s by John MaynardKeynes. “I believe it is anew way of investing [but]to some degree it’s back tobasics, it’s how Keynes sawinvesting. It’s back to acommon sense approach.”

The fund, which willinvest in developed marketequities, will charge a 1 percent management fee and20 per cent of any outper-formance, although Owner-ship Capital said it wouldscale down the fees asassets rise. The minimuminvestment is €50m.

News analysisEx­Dutch pensionscheme investorsclaim to be first intrend towards long­term concerns, saysSteve Johnson

FINANCIAL TIMES WEEKLY REVIEW OF THE FUND MANAGEMENT INDUSTRY | Monday January 14 2013

Hedge fundconundrumReturns are downbut even the world’slargest SWFs aregoing for themPage 3

A sustainable journey: Ownership Capital will set up in Amsterdam Alamy

Going Dutch

2 FINANCIAL TIMES MONDAY JANUARY 14 2013

FTfm

Bateson joins as a seniorquantitative analyst.

● The Abraaj Group, aprivate equity investor, hasappointed Sarah Alexanderas a managing director. MsAlexander joins from the

● Mirova, the responsibleinvestment division of NatixisAsset Management, has hiredJens Peers as chiefinvestment officer sustainableequities. Mr Peers comesfrom Kleinwort Benson, theprivate wealth manager.

● Kleinwort Benson hasappointed Jeremy Hippoliteas executive director,business development andGlenn Baker as director,business development.

● James Allum has beenappointed in the new role ofclient relationship director,real estate by ThreadneedleInvestments. Previously, Mr

Allum worked at AvivaInvestors.

● KNG Securities has takenon Thomas Saler andGabriele Balduccito to beresponsible, respectively, forexpanding business inSwitzerland and Germanyand for developing thecompany’s solutionsplatforms.

● GLG, the investmentmanager of Man Group, hashired Kumaran Damodaranfrom Pimco as a portfoliomanager. Brian Pinto fromthe World Bank will take onthe role of senior macro­economist and Richard

Emerging Markets PrivateEquity Association, where shehas been president and chiefexecutive.

● Toby Goodworth hasjoined bfinance, a financialand investment advisorycompany, as head of riskmanagement. Mr Goodworthpreviously worked at KeyAsset Management.

● Pioneer Investments hashired Mark Darcy and AmyDiMarzio to its USinstitutional team. Mr Darcywill work as head of USconsultant relations and MsDiMarzio as a fixed incomeinvestment strategist.

● Jupiter has appointedLuca Evangelisti and HarryRichards to the fixedinterest and multi­asset teamas credit analysts.

● IKEN Capital, analternative investmentcompany, has recruitedFiona Ross as a salesdirector. Ms Ross previouslyworked for Reech AiM.

● Anne Bellavoine hasjoined Carmignac Gestionas head of marketing. MsBellavoine has more than25 years of experience inthe financial sector, including17 years with SociétéGénérale.

Jens Peers joins Mirova

Movers & shakers

Consumerbody fightspensionlobbyBy Steve Johnson

The pensions industry maybe fighting to keep occupa-tional schemes outside thescope of a major Europeandirective because inclusionwould shine a light on poorpast performance, a con-sumer group has claimed.

Under the EU’s PackagedRetail Investment Products(Prips) directive, investorswould have to be given akey information document(Kid) outlining, amongother things, the past per-formance of the product.

The Association of BritishInsurers has said occupa-tional pensions should beexcluded from the remit ofPrips “to avoid any nega-tive disruption to pensionsaving” in the EU, particu-larly in the UK where aneed for individuals toreceive documentation priorto joining a scheme couldundermine the ongoing“auto-enrolment” of work-ers into company schemes.

The ABI also said that“harmonising product infor-mation for some sections ofthe Kid will be particularlychallenging and potentiallymisleading for consumers”.

However, Juan ManuelViver, policy officer for theEuropean Federation ofFinancial Services Users, anumbrella group for 50national consumer groups,said industry bodies “maybe fighting so hard to keepoccupational pensions outof Prips because the realreturns of UK pensionfunds have been negativefor the last 10 years”.

According to the OECD,UK pension funds generatedannual real returns of -0.1per cent between 2001 and2010, net of fees. The ABIdeclined to respond to MrViver’s claim.

CommentChris Newlands on theeffects of BlackRock’sgrowing domainPage 6

View from the USJohn Dizard contemplatesan Israeli strike on Iranand consequences for oilPage 8

Behaviour studyAcademics have found adata link betweenoverconfidence andunderperformancePage 10

Real estatePensions and sovereignwealth funds will increaseinvestment in propertyPage 11

ViewpointMark Konyn detects achange in attitude tobonds in AsiaPage 12

The last wordJames Mackintosh pondersthe effects of a recoveryon our investmentsPage 24

Contents

Face to faceRobertKoenigsberger,founder andmanagingpartner,GramercyFundsManagementPage 4

Hedge fund buys extra help

By Nick Rice

Hedge fund companyBridgewater Associates hasdivided opinion with a“transformative” newapproach to asset servicing,bringing in Northern Trustto duplicate and back upthe work of its existingadministrator BNY Mellon.

The arrangement, whichgoes live in 2014 and hasbeen hailed as unprece-dented in the asset manage-ment industry, is a result ofan “extensive two-year duediligence process to identifya firm with the financialstability, expertise, globalscale, and technologicalinfrastructure to supportBridgewater”, NorthernTrust said in a statement.

“In a role that will createapproximately 100 jobs in

Chicago and Stamford,Northern Trust will providebroad middle-office andback-office services includ-ing replicating variousadministrative processing,trade processing, valuation,real-time reporting, cashmanagement, accountingand collateral managementservices,” the Chicago-based company said.

The plan leaves Bridgewa-ter, which has $130bn undermanagement, with aback-up plan in case one ofits administrators shouldmake a critical error or fail.The deal will also force theadministrators to competeon comparable – and, toBridgewater, highly visible– metrics.

Experts point out that

hiring two service providersto perform the same task isnot necessitated by regula-tion and is likely to be unu-sually costly for Bridgewa-ter and/or its clients.

“It sounds super-expen-sive. There’s got to be some-thing else in it for them,and I’m racking my brainstrying to think what it is,”said Lyn Marcrum, senioranalyst at Aite Group.

Northern Trust is tight-lipped about the deal,declining to commentbeyond the information pro-vided in a press release.

Whatever the outcome forBridgewater and its clients,the deal appears to be acoup for Northern Trust.The asset servicer acquiredhedge fund administratorOmnium in July 2011 andtransformed it into itshedge fund services depart-ment specifically to be ableto bring in more alterna-tives investment business.

This article also appears inFundfire, a Financial Timesservice

Bridgewater bringsin Northern TrustGroup will back upBNY Mellon’s work

March Gestión looks beyond SpainBy Ellen Kelleher

Soaring outflows fromSpanish mutual funds andSpain’s dismal economy areforcing March Gestión deFondos, the boutique assetmanagement arm of BancaMarch, to recruit investorsfrom other European coun-tries.

As cash-strapped Span-iards flee from mutualfunds, March Gestión,which has €2.2bn undermanagement, is embarkingon a drive to widen its baseof European investors in abid to grow its assets. Itscampaign coincides withSpaniards withdrawing as

much as €42bn from mutualfunds since the start of2010, according to Lipper.

“These days it can betough to be Spanish,” JoséLuis Jiménez, head ofMarch Gestión, told FTfm.“We’ve managed to growour assets under manage-ment, so that makes us astrange beast in Spain’sfinancial industry.”

By teaming up with pri-vate banks and familyoffices in the UK and else-where in Europe to sellLuxembourg-based Sicavs,Mr Jiménez hopes to widenthe group’s influence out-side of Spain.

Its three funds on offer in

Luxembourg are the €60mMarch Vini Catena fund,which invests in stocksrelated to the wine busi-ness, the €20m Family Busi-nesses fund, which investsonly in stock market-listedfamily companies, and Tor-renova, the group’s flagship€500m global absolutereturn fund.

March Gestión first beganefforts to attract investorsfrom wider Europe, byarranging partnershipagreements with Italianwealth managers, includingCassa Lombarda and Uni-casim. It is also holdingtalks with Austrian and UKbanks.

Registering with theFinancial Services Author-ity, in a bid to drop itsanchor in the UK market, isunder consideration as well.

“We prefer to go shop byshop in Europe. We’re stilla small investment bou-tique. We try to excel at thethings we do,” says MrJimenez.

Since 2008, the group’sassets have come close todoubling from €1.2bn to€2.2bn under management.Banca March, a family-owned Majorcan lender, isone of the most stronglycapitalised in the world,with a solvency ratio of 27per cent.

FTfmIssue No. 531

Editor Chris NewlandsTel: +44 (0)20 7775 6382e­mail: chris.newlands@ft.com

Deputy editor Steve JohnsonTel: +44 (0)20 7873 3525e­mail: steve.johnson@ft.com

Production editorHelen BennettTel: +44 (0)20 7873 3445e­mail: helen.bennett@ft.com

Reporter Ruth SullivanTel: +44 (0)20 7873 4744e­mail: ruth.sullivan@ft.com

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FINANCIAL TIMES MONDAY JANUARY 14 2013 3

T he highly paid alche-mists of the hedgefund industry once

held out the promise of racyreturns, or at the very leastsolid gains over a marketcycle.

But over the past fiveyears these market maes-tros have, in aggregate,eked out a cumulative gainof just 7.8 per cent, accord-ing to Chicago-based HedgeFund Research, well belowmany funds’ target annualreturn of 300-400 basispoints above Libor.

The industry has alsoroutinely underperformed asimplistic 50/50 portfolio ofequities and bonds – match-ing this basic basket in oneyear and undershooting itin the other four.

Last year saw a particu-larly poor showing fromhedgies, with industry-widereturns of 6.2 per cent,according to HFR, wellbelow the median 11.4 percent return of the FTSE AllWorld equity index and theBarclays Global Aggregatebond index.

Yet money continues topour into hedge funds,largely from supposedlysophisticated institutionalinvestors. In the first ninemonths of 2012 the industryattracted net flows of $31bn,taking assets to $2.19tn,HFR reports, well above thepre-crisis peak of $1.87tn.

Few investors seem readyto throw in the towel andabandon hedge funds, withmany arguing that theindustry is providing a val-uable service, even if abso-lute returns may have beena little disappointing.

“In terms of absolute per-formance it has been rela-tively lacklustre, but itdepends on the role youexpect hedge funds to playin your portfolio,” saysMike Powell, head of alter-natives at the UniversitiesSuperannuation Scheme,the UK’s second largestpension fund, which startedinvesting in hedge fundsthree years ago and has justover £1bn, 3 per cent of itsportfolio, in the asset class.

“Our view is that youshould expect hedge fundsto underperform equities inthree or four years out offive. We would expectthem to really add valuein periods when risk assetsare really doing poorly,such as 2008,” when theHFR index was down 19 percent, half the 41.8 percent fall in global equities.

Stephen Oxley, managing

director of Pacific Alterna-tive Asset Management Co,an $8.5bn fund of hedgefund house, says “we aredefinitely not seeing inves-tors back out of hedgefunds, because they arethinking for the long termand they are thinking aboutrisk as much as return.

“It’s only naive investorswho would look back at thelast two years and say thisis not very good.”

Ulrich Keller, head ofalternative funds solutionsat Credit Suisse, says thebank’s flagship fund offunds made 5 per cent in2012.

“I feel it’s an acceptablereturn, even an attractivereturn,” he says, arguingthis was achieved with littleexposure to rising equitymarkets, or “beta”.

The experiences of theAbu Dhabi InvestmentAuthority, one of theworld’s largest sovereignwealth funds, are instruc-tive in understanding whyinstitutional investors seemso sanguine.

ADIA was an early inves-tor in the industry in 1986.These initial investments“did fantastically well” dur-ing the bursting of the dot-com bubble, says Jean-PaulVillain, head of ADIA’sstrategy unit, helping shieldthe broader portfolio fromlarge losses.

Some 5-10 per cent ofADIA’s assets are now in“financial alternatives”,largely non-directional orcounter-cyclical strategies

such as commodity tradingadvisers and global macrofunds, and holdings evenmade a positive return in2008, Mr Villain tells FTfm.

“We are looking at thisasset class to generate posi-tive returns in periodswhen the assets where wehave most of our exposureare not providing goodreturns,” he says.

Mr Villain, effectivelyADIA’s chief investmentofficer, says the currentenvironment of low interestrates and muted volatilityis not ideal for alternativestrategies, damping abso-lute returns for any hedgefund seeking to beat cashby a pre-ordained margin.Yet ADIA has no plans toreduce its exposure.

“We would prefer, ofcourse, the returns to behigher, but as long as[hedge funds] continue toprotect us in the periods of

decline then they are fulfill-ing their role in our portfo-lio,” he says.

The Universities Superan-nuation Scheme also hassignificant exposure toCTAs and discretionarymacro funds. Its returnswere a “bit of a mixed baglast year”, says Mr Powell,with long-term trend follow-ers suffering in particular.

“We would have hopedthat the returns would havebeen higher, but it has beena particularly difficultperiod,” he says, citing theeuro crisis and the risk-on,risk-off trading environ-ment. However, he remainsconfident of seeing long-term returns of cash plus300-400 basis points.

Mr Keller accepts theabsolute return numbershave not been great butbelieves institutions arecomfortable with a returnof 4-6 per cent from funds ofhedge funds providing thatcomes with very low expo-sure to market beta, help-ing cap exposure to equityand credit market volatilityin an investor’s broaderportfolio.

Indeed, Mr Keller and MrOxley argue such a returnmay become more attrac-tive amid a gathering viewthat the bond market rallymay have run its course.

“Investors are very con-cerned about the capitalvalue of their bond portfo-lios and I think they arebeginning to look at hedgefunds as a way of diversify-ing their fixed-income risk,”says Mr Oxley.

Two concerns remain. Ina low-return environment,the hedge fund industry’straditional “2 and 20” feemodel, 2 per cent annualmanagement fee and 20 percent performance fee,accounts for a higher pro-portion of the gross returns

being generated. However,Mr Villain believes fundswith strong performanceare largely able to with-stand fee pressure.

The other fear is that the

rapid growth in the hedgefund industry, which meanstrades are becoming morecrowded, which could arbi-trage returns away.

However, commentators

point to investment banks’retreat from proprietarytrading as a factor that iscreating more room forhedge funds and freeing uptalent for them to poach.

.

Hedgies fall short but investors happyThe big pictureThe asset class alsooffers protection inperiods of decline,says Steve Johnson

HFR Fund Weighted Composite index (%)

-19.0 -17.6

-5.3

20.022.9

10.3 10.36.2

11.4

0.1

Sources: Hedge Fund Research; Datastream

2008 2011

2009 2010 2012

Hedge funds underperform equities and bonds

Average of global equityand bond returns (%)

‘I think investorsare beginning tolook at hedge fundsas a way ofdiversifying theirfixed income risk’

News analysis

4 FINANCIAL TIMES MONDAY JANUARY 14 2013

Hedge fundgentlemanwagesArgentine war

R obert Koenigsberger,managing partnerwith Gramercy

Funds Management, neverintended to get mixed up ina war. But he has.

Mr Koenigsberger is beingdrawn into an expensiveand messy litigation battle,now wending its waythrough courts in NewYork, that is confusing foroutsiders to follow.

At issue is whetherArgentina should pay$1.33bn to a group of hold-ers of debt on which thecountry defaulted in 2001,as ordered by a judge in theUS last November. Thesedebt holders had refusedprevious restructuringdeals.

Mr Koenigsberger is fight-ing against the paymentand so is Argentina. This isbecause Gramercy, a spe-cialist in emerging markets,participated in two debtrestructurings the Argen-tines organised back in 2005and 2010. And if lastNovember’s ruling, whichhas been “frozen” pendingappeal, takes effect, the 92per cent who hold Argen-tina’s restructured bonds,including Gramercy, risknot being paid in full ontheir investments.

Effectively, the US rulingsets the stage for Argentinaeither to pay everyone –including the 8 per cent ofbondholders who refused tocome to the table the lasttime – or no one, since itwould not be able to con-tinue paying its restruc-tured bonds without flout-ing the judge’s order.

“The battle is aboutwhether the 8 per cent thatdidn’t participate in therestructuring are entitled to‘fair and equitable treat-ment’ and if they are, whatis that and what is theimpact on third-parties?”explains Mr Koenigsberger,speaking on the telephone

from his office in Green-wich, Connecticut. “If 92per cent of bondholderstook a two-thirds haircut, isit fair that the 8 per centget the same amount or sixtimes more than what theothers received?”

He adds: “Our position isless about siding with theArgentines and more aboutinsuring that the paymentsof the 92 per cent of bond-holders who agreed to adeal don’t get attacked bysome injunction in a NewYork court.”

The low-key Mr Koenigs-berger, who hails from thesuburbs of San Francisco,comes across as an unlikelywarrior.

And while the legal battleto protect the restructureddebt payouts from Argen-tina wages on, he refuses tobe distracted by it andremains focused on leading

the charge at the companyhe set up back in 1998.

Mr Koenigsberger haskept up an interest in sover-eign debt crises since hisundergraduate days at theUniversity of California,San Diego where he wrotehis thesis on the origins ofthe Latin American debtcrisis.

“I’ve been through everymajor sovereign debt crisisover the past 25 years,” herecounts. “I worked on myvery first deal with CostaRica back in 1988. Thenthere was Panama. Peru.Ecuador. But also else-where like Bulgaria in 1993.Poland in 1994. Russia inboth 1997 and 2000.”

He was motivated tolaunch Gramercy after aspell spent working onemerging market sovereigndebt restructurings at Mer-rill Lynch and LehmanBrothers because he wantedto create a company thatwas independent and free ofconflicts of interest.

“When you work onrestructurings at a Wall

Street bank, there are allsorts of conflicts of interestthat create headwinds forsuccessful outcomes.

“When I worked at a bigbank on Wall Street, all Icared about was managingthe debt exposure of thebank and its clients. Butsome other teams at thebank were looking at thecountries we were dealingwith as potential clients

rather than obligors,” henotes. “Wall Street bankstend to want to representpeople on all sides of a deal.So sometimes that meansyou don’t get the most posi-tive outcomes for debtrestructurings in emergingmarkets.”

He says: “Today when Isit down at the table towork on deals, I’m trying toget the best possible return

for my clients. We have onebusiness here and that is tomanage capital for ourclients.”

He dislikes litigation pri-marily because it drags onand tends to be expensive.When it comes to sovereigndebt restructurings, hisapproach is to get a “rea-sonable deal” done within12 to 18 months. “I wasinvolved in a sovereign debtdeal with Peru in the mid-1990s. And we got a consen-sual deal that was worthover 125 cents on a US dol-lar,” he remembers.

“I believe the holdouts inthe legal battle got slightlymore, but it took them overa year longer, and I imaginethey had to pay signficantlegal fees.”

Gramercy is still a rela-tively small boutique, withjust seven emerging marketportfolio managers on staff.As a house, its focus is onthree investment areasacross emerging markets:about $500m is invested inEM debt, another $500m inequities and the roughly

InterviewA legal battle overrestructured bondsis not distractingthe founder ofGramercy, writesEllen Kelleher

‘People alwaysthought of US fixedincome as a safepart of theirportfolios, but itisn’t so safe’

Founded1998

Assets undermanagement$3.4bn

HeadquartersGreenwich, Connecticut

OfficesLondon, Hong Kong,Singapore, Mexico

Number of employees55

Ownership100% employee owned

Gramercy

Robert Koenigsberger

Born 1965

Education1987University of California, SanDiego (BA hons in LatinAmerican political scienceand history and economics)

1993University of Pennsylvania(MA in International studies)

Career1987

Vice­president, CR­PAssociates

1991Vice­president, MerrillLynch, Pierce, Fenner &Smith

1995Senior vice­president,Lehman Brothers

1998Founder, chiefinvestment officer andmanaging partner,Gramercy

Curriculum vitae

$2.3bn remainder in alterna-tive strategies, whichmainly include opportunis-tic credit and distresseddebt investments.

Over the course of hiscareer, Mr Koenigsbergersays that emerging marketshave “come out of the emer-gency room” and become “amuch more important partof portfolios”.

And in this new year, theimportance of emergingmarket sovereign debtremains pivotal, given that10-year US treasury bondsstill throw up yields of lessthan 2 per cent while long-term sovereign debt issuedby Argentina and Vene-zuela offers yields of morethan 11 per cent, he claims.“People always thought ofUS fixed income as a safepart of their portfolios, butit isn’t so safe,” he advises.“If the yields on US treasur-ies widen by 100 basispoints from 175 basis pointsto 275 basis points, that rep-resents a big capital loss forUS investors.”

Mr Koenigsberger says healso thinks fears aboutArgentina and other EMgovernments’ inability tomeet debt payments areoverblown for the mostpart.

“When you buy EM debt,the call you’re making isnot so much on the mediumto long-term prospects of aneconomy but more a call oncredit being oversold,” heargues.

Some of Gramercy’s cli-ents are pension funds hop-ing to achieve annualisedreturns of 7 to 8 per cent.Mr Koenigsberger saysmost remain satisfied withthe higher EM allocationsin their portfolios.

“It’s clear that emergingmarkets with their largepopulations and strongereconomies have indeedemerged,” he concludes.“We can build and also pro-tect portfolios with higherreturns that are less corre-lated to mainstream mar-kets and will help to protectcapital in case of a shockevent in the markets.”

Face to face – Robert Koenigsberger

FINANCIAL TIMES MONDAY JANUARY 14 2013 5

6 FINANCIAL TIMES MONDAY JANUARY 14 2013

often observers assumethat what is logical in theindustry will naturallyhappen. This is rarelythe case.

For example, criticismsof the number of funds inEurope (currently around35,000) often focus on thevast array of funds thatthe largest groups manage.Yet hundreds of groups inEurope have mutual fundassets below €100m.

Where is the businesscase – not least for thoseasset managers withshareholders – for theformer to slash hundredsof funds, rather than justtrimming a few, which we

have seen of late? The riskis clear of losing eithercurrent or future clients asinvestor preferenceschange.

So a big group withequivalent distributionambitions will almostinevitably expand its fundrange as investor demandsevolve, but also withstandlarger outflows when anasset class is out of favour(not necessarily because ofunderperformance).

A small manager withmore limited distributionmay be able to manageshorter-term changes ininvestor appetite. But thisunderlines that it would be

When first executed on theworld stage, the CruyffTurn – named after theDutch legend Johan Cruyff– was surely one of theiconic moments in football,with an unexpected changeof direction bamboozlingopponents. Recently somefund companies in Europehave been contemplatingwhether they have thenerve and the skill tomake a similarly dramaticchange.

For the funds industry,this is the shift from beingperceived as short-termsalesmen to longer-termstewards of their investors’assets, which both the KayReview of UK equitymarkets and the 300 Club’srecent report addressed.But the notion that assetmanagers across the boardcan build businesses witha limited range of funds ina certain niche, and forfund performance toattract buy-and-holdinvestors steadily overtime, is questionable.

If possible, such achange could be good for

both clients and assetmanagers alike. But Icannot help thinking thatexpectations of such achange are a bit like thenewspaper headlines thatproclaimed the death ofcatenaccio (Italiandefensive-style football)after the stylish exponentsof totaalvoetbal (totalfootball), Ajax, beatInternazionale in the 1972European Cup final.

Sadly, history showsthat, despite the Dutchteam’s other considerablesuccesses, the Netherlandslost the 1974 World Cupfinal to West Germany.And it is this result that afund company mustconsider beforeoverhauling its businessstrategy and productrange. What looks good forone group does not alwayswork for another.

This is not to say thatasset managers should notconsider their clients’interests – they are duty-bound to do so – and Ihave spent many yearssaying that morecompanies should spendgreater efforts minimisingfund costs that their retailinvestors bear. But too

a hard task to force manyof the long list of smallgroups to shut up shop foran apparent greater goodof increasing the industry’saverage fund size.

Besides, I am bound towonder whether a largeraverage fund size reallywould translate generallyinto economies of scalebeing passed on to retailinvestors across Europe. Ifthe industry were seriousabout this, then there aremany large funds or fundcompanies that could havegrasped this issue already.

There is a crucialaccompanying issue thatcannot be ignored: thefrequency with whichEuropean fund selectorsbuy and sell active fundmanagers.

Since 2005 the annualredemption rate for cross-border funds in Europehave ranged between 48per cent and 97 per centaccording to Lipper, thedata provider. But in theUS the range was between24 per cent and 36 percent, according to ICI, theindustry body. Regardlessof one’s views on suchbuying and selling activity,it is a reality to which pan-

European asset managerscannot be blind.

In this environment it islittle wonder thatlaunching funds is such afeature of the industry. Arecent slowing of suchactivity has not changedthe fundamentalpredisposition to developproducts. After all, if nofunds had been launchedover the past decade, thenindustry assets would havestayed at €3tn. Instead,€2.8tn of the industry’scurrent €5.8tn sits in fundslaunched in theintervening years.

Very few football teamshave the players to enablethem to play stylish “totalfootball” and expect to winregularly, and perhapseven fewer fund managerswould expect to find aparticular strategy orsecurity selections infavour with investors andfund selectors in allmarket conditions. Or asMr Cruyff himself put it:“Simple football is thebest, but it is very difficultto play simple football.”

Ed Moisson is head of UKand cross-border researchat Lipper

We need brand new tactics for new goalsTalking headED MOISSON

BlackRock – the world’slargest money manager –got bigger last week with

the announcement that it is toacquire the exchange tradedfunds (ETF) arm of CreditSuisse, Switzerland’s second-largest bank.

The deal, which is expected tocomplete before the end ofJune, will see the US fund giantadd a further $18bn or so offund assets to an alreadyimpressive haul, which, at thelast count, totalled $3.67tn.

But while the US investmenthouse’s asset pile grows everlarger, the Credit Suisse deal issaid to mark the beginnings ofa decline in the number ofparticipants in the ETF market.

Money held in all ETFproducts globally neared the$2tn mark last year, but almost70 per cent of those assets arerun by just three companies:iShares, BlackRock’s ETF armthat it acquired from Barclaysin 2009; State Street; andVanguard.

In Europe the picture is only

slightly less skewed with thetop three providers by assets –iShares, Deutsche, and Lyxor,the Société Générale-owned ETFhouse – controlling just over 60per cent of the market.

Outside of this list of top-three providers, the remaining43 ETF companies in Europemust, by comparison, contendwith slim pickings, with themajority sharing less than 1 percent of the spoils each.BlackRock’s purchase of CreditSuisse’s largely Europeanbusiness, meanwhile, wipes outthe continent’s fifth-largestprovider and increases the UScompany’s share of assets tojust less than 43 per cent, saysETFGI, the consultancy.

Hector McNeil, a formermanaging partner at ETFSecurities, the fourth largestprovider in Europe, who is nowco-CEO at start-up Boost ETP,says he expects to see a 30 percent drop in the number of ETFproviders in Europe with bank-owned houses constituting thelargest chunk of those exits,due to over regulation andrevenue pressure.

The likes of BlackRock andState Street, he says, willsubsume the medium-sizedissuers, “taking out thecompetition and increasing theirmarket share considerably”.

Despite BlackRock’sdominance its share of assetshas in fact slipped. According to

ETFGI, its hold over the globalETF market has fallen in thelast four years from 41.5 percent in 2009 to 39 per cent atthe end of 2012.

Bruno Poulin, chief executive

of French ETF boutique Ossiam,told FTfm sister publicationIgnites Europe that BlackRockwanted Credit Suisse’s ETF arm“at any cost” and was “willingto pay to avoid State Street orVanguard getting a foothold inEurope”.

Joe Linhares, European headat iShares, has other ideas. Onsuggestions that BlackRock mayhave overpaid for the CreditSuisse unit to strengthen theUS company’s position he saysit would do another deal at thisvalue “in a minute”. Terms ofthe transaction were notdisclosed. For him the purchase

is not about chasing assets andreducing its number ofcompetitors but about gainingground in Switzerland.

“The transaction willsignificantly extend ourfootprint in Switzerland,” hesays, adding that he believesthe country is home to one ofthe deepest investor bases inEurope.

BlackRock currently has whatit calls “a small presence” inSwitzerland, with some 50employees based in its offices inGeneva and Zurich. It also has“zero local product offerings” inthe country, BlackRock says.

There appears to be sometruth in Mr Linhares’ claim.The Credit Suisse deal isBlackRock’s second acquisitionin Switzerland in the last 12months following the purchaseof Swiss Re Private EquityPartners, announced in July. Italso follows the appointment ofPhilipp Hildebrand, the formerchairman of the Swiss NationalBank, who joined BlackRock asvice-chairman in June last yearto oversee the company’slargest institutional clientrelationships outside of the US.

“This deal is aboutSwitzerland, nothing else,”BlackRock says.

Whether or not that is true,the upshot is that the manageris nearing the point at which itowns half of everything itsurveys in the ETF market.

BlackRock buy bodes ill for others

‘[BlackRock and StateStreet will subsumethe medium­sizedissuers], taking out thecompetition’

Hector McNeil, Boost ETP

FTFM EDITORChris Newlands

Opinion

Twists and turns: Johan Cruyff in the 1974 World Cup Getty

FINANCIAL TIMES MONDAY JANUARY 14 2013 7

8 FINANCIAL TIMES MONDAY JANUARY 14 2013

Opinion

almost two weeks off, so youhave time to think aboutwhether those flatlinedvolatility prices are really thebest measure of how macrorisks to the portfolio will playout over the course of the year.After the elections are over, itmay in turn take some days toget all the cabinet positionsallocated. Then you can start toworry.

I’ve also been following thestock price of AlliantTechsystems, normally a boringactivity, except that the stockprice has been on a tear sinceAugust, up about 30 per cent.ATK is the major supplier ofmunitions to the US DefenseDepartment and other approvedcustomers. Before you ask, no,you can’t buy its products foryour own use.

Put all this together, and Ithink that the volatility of mosttraded securities andcommodities is underpriced, andthe price of oil is . . . overpriced.This may seem counterintuitive,but while an Israeli strike onIran’s nuclear facilities wouldundoubtedly lead to animmediate spike in the price ofoil, it seems most likely thatthe price increase would betemporary.

Thanks in part tointernational sanctions, as wellas to the Iranian government’smismanagement of its economy,the ability of the country tosustain a prolonged war or cut-off of critical imports and oilexports is limited.

Furthermore, even the mosthawkish Israelis (or anti-Shi’iteSunnis) don’t seek to entirelydestroy the Iranian economy, orits ability to produce oil. They

just want to destroy, or veryseverely damage, its nuclearfacilities. If an angered Iraniangovernment and people want toretaliate on a large scale, theIsraelis might point to theessential, and vulnerable,refining facilities in Abadan andcomment that those will nothave been destroyed; yet. TheIranian economy and societywould not function without thatfuel.

So after the dust (the forms ofwhich were ably described byMSGT Wilkerson) settles, theworld will have an open Straitsof Hormuz, an Iran that willprobably have regained accessto the world’s oil markets, anda lot of oil in the hands of cash-strapped governments, alongwith speculators and hedgerswith interest and storagecharges to pay. They’ve beenholding on to abnormally highinventories for years, and maybe open to selling some of whatthey have. On the initial newsof any strike, the oil price willhave jumped up to some hugepremium, but then, as thesaying goes in the business, thecure for high prices is highprices.

This wouldn’t mean thatthere will be a crash back tothe 1940s or 1950s in the per-barrel price, but would a

decline over several months to,say, $70 be an impossibility? Idon’t think so. That’s aneconomic price for a lot ofprojects, even though you’dhave some unhappy oligarchsand London property agents.

And, of course, Israel wouldnot be popular in the Muslimworld. But then it’s not thatpopular now, is it?

I’m not sure any USgovernment denunciations ofthe irresponsible and prematureactions of Israel would be anadequate defence againstaccusations of hypocrisy.

The problem with actionssuch as a strike on Iraniannuclear facilities is that it’s notpossible to foresee the long-termconsequences.

There would be significantcivilian casualties, muchbitterness, some immediate,though limited, retaliatorymeasures against Israel,international sanctions, and

possibly an indefinite extensionof the political life of theIranian regime. For thosereasons, many thoughtful andwell informed Israelis areopposed to a strike. That groupmay not comprise a majority inthe next cabinet.

What we’re considering here,though, is the effect of a strikeon oil prices in the followingmonths, and I believe thatthere’s a more compelling casefor a decline after an initialspike rather than a semi-permanent move far above $100per barrel.

Any portfolio manager shouldkeep that in mind when lookingat any dramatic televisedimages and fast-blinking pricescreens.

This event, or series ofevents, isn’t a certainty, but it’sa lot more probable than thevolatility series are forecasting.

john.dizard@ft.com

When the dust settles, Isee declining oil prices

Beautiful but dangerous: sand storms can damage investments AP

VIEW FROM AMERICAJohn Dizard

An Israeli strike onIran’s nuclear facilitieswould lead to a spikein oil prices, but thatwould be temporary

A US Army manual states that“dust and sand in the air maybe the single most destructiveenvironmental element tomilitary equipment” (Hoock,1984).

Dust and Sand Forecasting inIraq and Adjoining CountriesMSGT Walter Wilkerson, AirWeather Service, November 1991

L et us say you wereinterested in determiningthe optimum time of year

for some country to beconducting major air operationsin some country that adjoinsIraq. You’d be consultingreference sources such as MSGTWilkerson’s work, wouldn’tyou? It turns out that there is acertain seasonality to duststorm frequency and severity,and that if you are making adecision on this sort of activitysometime around the end ofJanuary, sooner is better thanlater if you want to reduce therisk of engine damage.

I know, it all seems a littleobscure, even by my standards.Unless, perhaps, you areexposed in some way to theprice of oil. Then, maybe not soobscure. And what pile ofmoney is not, in some way,exposed to the price of oil?

Perhaps you should relax,though. The Israeli Knesset(parliament) elections are

FINANCIAL TIMES MONDAY JANUARY 14 2013 9

10 FINANCIAL TIMES MONDAY JANUARY 14 2013

Analysis

The verdict is out. Again.Another round of academicresearch from UK profes-sors suggests that for Amer-ican fund managers, over-confidence is like a ghastlyvirus. Those who catch it,risk making poor invest-ment calls and reportingsome shrinkage in theirinvestment returns in theyear following the publica-tion of a fund’s annualreport.

Indeed, Arman Eshraghi,a professor at the Univer-sity of Edinburgh’s Busi-ness School, and RichardTaffler, a professor workingat Warwick BusinessSchool, argue that over-opti-mism among fund manag-ers based across the Atlan-tic Ocean is rife. And as aresult, investors are seeinga slowdown in returns onactive funds run by over-confident fund managers.

Managers with a growthbias tend to be moreaffected by the trend thanvalue investors, accordingto the research. And as onemight expect, fund manag-ers with strong past per-formance are more likely tocatch the overconfidencedisease than those with lesssuccessful ones.

“When you outperformyour benchmark you tendto become overconfident,”Prof Eshraghi says.

Profs Eshraghi andTaffler arrived at the con-clusion that “excessive lev-els of overconfidence inter-fere with sound investmentdecision-making andthereby diminish futureinvestment returns” – afterusing the so-called Carhartfinance model – a perform-ance assessment tool – tostudy the connectionbetween the over-optimisticmood of fund managers andthe returns of some 4,600actively managed US fundsbetween the years 2003 and2009.

And the two also arguethat money can be made byshorting funds looked afterby overconfident fund man-agers and buying ones runby those deemed to be “nor-mally” confident.

Their report Fund Man-ager Overconfidence andInvestment Performance:Evidence from Mutual

Funds stems from researchcompiled by Prof Eshraghilast year to complete hisPhd at the University ofEdinburgh. Prof Tafflerserved as his thesis adviser.

“The whole idea is thatoverconfidence affects yourinvestment decisions and,by extension, your invest-ment returns,” explainsProf Eshraghi.

“We found that by poten-tially knowing this inadvance, it would assisthedge funds in gainingalpha. You could buy those

funds whose fund managersare optimally confident andsell those funds whose man-agers are overconfident.”

But a question lingers.How did the professor meas-ure confidence? ProfEshraghi’s response seemsless than convincing. Heassesses American fundmanagers’ over-optimism orlack thereof by analysingthe nature of the narrativethey write in their annualreports with the help of asoftware programme calledDiction. “If you are very

upbeat and happy aboutyour performance you oftenuse positive adjectives andother upbeat words. Thesoftware measures that andproduces automatic scoresfor over-optimism,” he says.“The algorithm uses aseries of 33 dictionaries(word-lists) to search textpassages for differentsemantic features such aspraise, satisfaction ordenial.”

This method seemsunlikely to be foolproof.And even Prof Eshraghi

admits that the distinctionsthat distinguish overconfi-dence from normal confi-dence levels are subtle andin some cases difficult todiscern.

“There is no single way ofdefining overconfidence,”he says. “The differencesbetween normal confidenceand overconfidence can beslight.”

The pair say that anumber of subtle factorsaffect a manager’s confi-dence. Indeed, investmentmanagers are swamped by

so much information andface so much competitivepressure that they tend torely on subjective judge-ment, intuition and theirgut feelings to make deci-sions. Their jobs are diffi-cult and they face thethreat of dismissal if thereturns they earn are not“up to snuff”.

“On average, fund manag-ers are more confident thannormal people. They haveto believe in themselves inorder to survive in thisuncertain environment anddeal with the stress andanxiety of buying and sell-ing stocks,” says ProfEshraghi. “You have to beconfident in order to sur-vive in a harsh environ-ment.”

The professors do notethat fund managers do notalways engage in excessivetrading due to overconfi-dence. Rather, they mighthave to increase their turn-over after a rise in fundinflows following strongpast performance. “Fundmanagers indeed trademore after good past per-formance and their highertrading is driven by individ-ual portfolio performance,”they note.

As one would expect, theperformance of under-confi-dent managers is just aspoor. “Their funds tend toimplode for some reason,they just can’t sustain theirperformance,” notes ProfEshraghi.

No continental Europeanor UK fund managers werestudied given the difficultyof obtaining companyreports. Prof Eshraghi notesit was easier to assess thelevel of confidence of Amer-ican fund managers asannual reports there are“freely” available.

Beware the dangers of over­inf lated egosBehaviour studyAcademics havefound a data linkbetween managers’overconfidenceand subsequentunderperformance,says Ellen Kelleher

Pride before the fall: a scene from the film Arbitrage about a super confident hedgefund manager who takes a wrong turn in life Moviestore / Rex Features

‘The differencesbetween normalconfidence andoverconfidencecan be slight’

FINANCIAL TIMES MONDAY JANUARY 14 2013 11

News analysis

Direct investment in realestate markets by pensionfunds and property sover-eign wealth funds is set todouble over the next dec-ade, according to JonesLang LaSalle, the propertyconsultancy.

The findings follow arecent JPMorgan AssetManagement study thatfound 43 per cent of institu-tional investors were exper-imenting with real assets.The study, conducted lastyear, surveyed 2,500 institu-tional investors with assetsof $7.8tn.

David Green-Morgan, glo-bal capital marketsresearch director for JLL,says the company is awareof a growing number of pen-sion funds and SWFs thatare considering makingallocations to real estate forthe first time.

Investment flows thus farhave been concentrated inthree cities, London, NewYork and Hong Kong,prompting concerns that apricing bubble is forming inthe “super prime” officeand retail properties thatare widely desired by pen-sion funds and SWFs as amatch for their long-termliabilities.

“Even in those countrieswhere the broader eco-nomic outlook is challeng-ing, the sheer weight ofinvestor interest in blue-chip or super prime proper-ties is continuing to pushvalues up and there is adanger that yields will com-press to uncompetitive lev-els,” says Mr Green-Morgan.

JLL cautions that pricingpressures in the leading cit-ies are unlikely to abate,with pension funds inemerging markets becom-ing much more active inglobal property to find asafe home for their expand-ing pools of domestic sav-ings.

These players also tend tomake higher allocations toreal estate (10 to 15 per centof their assets) than theirpeers from developed mar-kets (5 to 10 per cent).

Recent deals suggest thatsome of the pension andsovereign wealth funds thatare already active in prop-erty markets are starting toshift their focus from primereal estate.

Norway’s oil wealth fund,which bought CreditSuisse’s headquarters in

Zurich for SFr1bn ($1bn) inNovember, recently saidthat it would target indus-trial properties in Europe,marking a departure fromits previous strategy.

Norges Bank InvestmentManagement currently hasaround 0.3 per cent of itsassets in real estate but it isstruggling to reach its tar-get of 5 per cent.

The world’s largest sover-eign wealth fund also plansto invest about $11bn in theUS real estate market as itsseeks to broaden its prop-erty portfolio.

The Canada Pension PlanInvestment Board has alsoannounced in Decemberthat it plans to expand itsretail property portfolio inEurope after partneringwith Citycon, a Nordic realestate company, to buyKista Galleria, one of thelargest shopping centres inStockholm, for SKr4.6bn($700m).

CPPIB manages a total ofC$170.1bn (US$172.4bn), ofwhich C$18bn is invested inreal estate, mainly in shop-ping centres spread acrossthe world. This includes theWestfield complex in Strat-ford next to the UK’s Olym-pic Village.

In October, CPPIB spentC$445m to acquire a shareof two shopping centres inAustralia and it has alsoallocated US$800m to investin logistics and industrialproperties in the US andChina in partnership withGoodman Group, a privateAustralian property com-pany.

These deals are the lead-ing edge of a structuralshift by institutional inves-tors away from their tradi-tional holdings of stocksand bonds into “real” assetssuch as property, infra-structure, natural resourcesand transport, according toJPMorgan Asset Manage-ment.

It analysed more than2,500 institutional investorslast year with assets of$7.8tn and found that only14 per cent were investedsolely in stocks and bonds,while 43 per cent wereexperimenting with realassets and a further 36 percent were engaged withsubstantial allocations.

JPMorgan argues thatreal assets such as propertyprovide “all weather” pro-tection for pension funds bydelivering better returnsthan bonds in highergrowth environments while

also proving more defensivethan equities in lowergrowth periods.

Douglas Crawshaw, sen-ior investment consultantat Towers Watson, sayspension funds have fourmain routes when consider-ing how to gain exposure toreal estate.

“Pension funds can investin property via publicequity markets in vehicles

such as Reits [real estateinvestment trusts], orthrough public debt ininstruments such as CMBS(bonds backed by a pool ofloans on commercial realestate). They can also gainan exposure via unlistedfunds and private equity orthey can lend directly toproperty companies.”

Many pension funds havehistorically favoured invest-

ing in real estate viaunlisted property funds orthrough pooled funds butthis means that trustees donot have full control overtheir investments.

Mr Crawshaw says thatTowers Watson expects tosee pension funds shiftinginto the next tier of realestate down from primeproperty because ofvaluation.

JLL estimates that thevalue of investment-gradeproperty trading couldincrease from about $450bna year currently to morethan $1tn a year by 2030,with the value of the totalcommercial property mar-ket rising from $36tn to$92tn, based on forecastsfrom Pramerica, the prop-erty investment arm of Pru-dential Financial.

Pension funds’ property targets set to soarReal estateDirect investmentby pensions andSWFs to double,adding to concernsof a ‘super prime’bubble, writesChris Flood

‘The sheer weightof investor interestin blue­chipproperties ispushing values up’

12 FINANCIAL TIMES MONDAY JANUARY 14 2013

Steering investment into EU“peripheral” country sovereign debtmay not be such a bad idea if theactions of Carmignac Gestion, theParis-based asset management com-pany, are anything to go by. The€50bn fund firm is taking advan-tage of what it sees as renewedopportunities in weaker eurozonesecurities.

The company was founded in 1989by Edouard Carmignac, chief execu-tive and chairman, and its capital isheld entirely by management andstaff.

Carmignac’s change of tack fol-lows the “whatever it takes” decla-ration by Mario Draghi, in whichthe president of the European Cen-tral Bank offered unlimited supportto ailing EU governments on condi-tion that they apply for it and agreeto specified economic reforms.

Since Mr Draghi’s July announce-ment, Carmignac’s €5.8bn Carmig-nac Securité division has €750minvested in Italian and Spanish sov-ereigns, according to figures for theend of November last year. Amonth earlier, that number wasjust short of €690m.

Mr Draghi’s pronouncementresulted, more or less immediately,in Spanish 10-year bonds falling byabout 1 per cent. This was followedby a steep fall in spreads, of about 4per cent, until mid-August, on thecost of refinancing Spanish andItalian government paper againstGerman equivalents.

Carmignac may not be com-pletely gung-ho about its declaredinvestment policy, but Frédéric Ler-oux, the firm’s global fund man-ager, believes there is money to bemade. “The ECB’s intervention hashad a tangible effect on the mar-kets. However, our policy shouldnot be interpreted as the result ofunbridled enthusiasm over thehealth [of Italy and Spain]. We sim-ply intend to take advantage of theprice increase caused by the riskpremium fall on those assets,” hesays.

Mr Draghi’s move, continues MrLeroux, took away the risk of eco-nomic collapse in the fringe coun-tries of Europe, significantlyimproving the yield-volatility ratio.

He adds that it was more or lessinevitable that the Spanish govern-ment would have to seek supporteventually and that economicreforms were correspondingly una-voidable. This, he says, will under-pin his company’s investmentstrategy.

Carmignac’s general forecasts for2013 predict that while the US will

start the year on a positive note,the eurozone will find it hard toavoid a recession, according toDidier Saint-Georges, a member ofthe firm’s investment committee.

Countries trying to hold outagainst a downturn will find them-selves contaminated by the afflic-tions of their “southern trade part-ners”, he believes. However, it iscredible that, under their reformprogrammes, most of these coun-tries could stabilise their nationaldebt in two years, Mr Saint-Georgeswrote in Carmignac’s Decembernewsletter.

Mr Saint-Georges’s optimismstopped short of France, whoseequivalent performance he declaredas “worrying”.

Others are less enthusiastic aboutthe placing of funds in southerneurozone sovereigns. Ben May, aEuropean economist at Capital Eco-nomics, the London-based inde-pendent macroeconomics researchconsultancy, believes that any“aggressive” purchase from Span-ish banks would involve “a lot ofuncertainty”.

“The longer Spain holds outagainst asking for any bailout, thestronger will become the doubt thatthe ECB will ever be able to inter-vene,” he says.

A significant proportion of assetmanagement companies shied awayfrom commenting on investing inperipherals. However, LaurensSwinkels, a portfolio strategist atRobeco, the Rotterdam-based firmwith €188bn under management,says the firm has recommendedthat, from a portfolio strategy per-spective, clients should treat gov-ernment bonds with spreads higherthan those of Germany as if theywere corporate bonds. Exposure-limit recommendations would alsobe the same as for corporate bonds.

Vincent Juvyns, client portfoliomanager at ING Investment Man-agement in Brussels, which holds€293bn globally, is fearful about thepossibility of downgrades of coun-tries such as Spain. The danger, hesays, is that they could lose theirinvestment-grade status, and thusfall outside the relevant bench-marks.

Philip Neyt, general manager ofthe pension fund at Belgacom, toldFTfm that the Belgian telephonecompany’s pension fund switchedfrom EU sovereign bonds into glo-bal bonds quite a while ago.

He complained of potential“bumpy rides in yields” fromperipherals, which involved “huge”,difficult-to-manage volatility.

Carmignac seesprof it in weakereurozone debtEU crisisThe Paris­based fundmanager has €750minvested in Italian andSpanish sovereigns,writes Jeremy Woolfe

L ow interest rates and areluctance to take riskhad a significant impact

upon Asian investorbehaviour throughout 2012.Funds following equity-basedstrategies have not beenpopular as investors havesought income as analternative to falling bankdeposit rates.

In the past, Asian investorshave traded funds activelyand allocated geographicallyor by investment theme,causing a constant rotationamong funds that manyproviders have viewed as asign of a lack of maturity inthis market. Since the globalfinancial crisis andparticularly in the past year,retail investors have focusedon strategies that deliverincome to the benefit of theAsian fund industry.

In Japan it has been thecase for many years thatinvestors have focusedostensibly on yield andincome. Since the bursting ofthe Japanese equity bubble atthe end of the 1980s, anageing population has beenmore interested in currentincome rather than futurecapital growth. Even whenJapanese fund investors haveincreased their risk appetite;any allocation to equities hasbeen relatively small, cyclicaland fleeting.

Some are now suggestingthat the rest of Asia isbeginning to follow Japan andthat the past year is clearevidence of a sea change inAsian investor behaviour.Gone are the days of short-termism and frequent trading,to be replaced by a longer-

term and strategic assetallocation approach thattargets investment outcomes.

The fund industry points tothe very strong flows intobond funds that have been atthe vanguard of a resurgencein the popularity of mutualfunds in many markets acrossAsia, including Hong Kong,Taiwan and Singapore. Evenin mainland China where thenascent market for fundsinvesting offshore was dealtan early blow by marketdeclines in 2008, investorshave more recently allocatedto higher yieldinginternational bond fundsusing existing quota foroffshore investing.

High-yield bonds andemerging market debt havebeen top performing assets in

2012. This has been coincidentwith a record year of newAsian bond issuance in bothlocal and hard currencies.Narrowing spreads, fallingrates and a reassessment ofthe credit quality in Asiahave combined to fueldemand. At the same timeinvestors globally have stayedshy of emerging marketequities and instead havechosen to gain exposure todeveloping economies throughtheir bond markets.

There have been many falsedawns predicted for the Asiandebt markets. Despite manyattempts by regionalauthorities to stimulatedemand, the critical massrequired for issuance anddemand has never beenachieved. As a result, cross-border ownership has beenrelatively small. The regionaldebt market has been

characterised by shorter-datedsecurities and dominated by asmall number of domesticinvestors that seldom trade.Buy-and-hold has been thewatchword for fear of givingup a scarce security thatcannot be replaced. Long-termhope for the bond market haslargely rested on an ageingpopulation driving the needfor pension systems that willultimately buy domestic bonds– factors that have proven tootheoretical for most investors.

The coincidence of strongissuance and an increasingappetite among retailinvestors, and importantlymutual fund investors,suggests that the Asianregional bond market is nowentering a new phase in itsdevelopment.

Mutual funds investing inthe regional bond marketswill by necessity trade theirholdings and are not simplybuying bonds to hold tomaturity. Funds have ongoingsubscriptions and redemptionsand are under constantcompetitive pressure to adjustholdings to meet both capitaland income targets. For aslong as bank deposits flowinto bond funds investing inAsian debt, secondary bondmarket liquidity will increase.The same is also true of thereverse. Any redemption fromthese newly popularised fundswill also increase the depth ofthe secondary market in muchthe same way that Asia’sequity markets came of ageduring the 1990s.

Whether the appetite forincome generating mutualfunds is long lasting andindicative of changinginvestor behaviour is a mootpoint. The average investoris likely to make a tacticalshift away from bond fundsin favour of resurgent equityperformance, should thisoccur.

Mark Konyn is chief executiveof Cathay Conning AssetManagement, Hong Kong

Sea change as Asianinvestors turn to bonds

VIEWPOINTMark Konyn

Cautiouscitizens: theJapanesehave avoidedequities foryears. Therest of Asiais beginningto followsuit Getty

We simply intend totake advantage of theprice increase caused bythe risk premium fall onItaly and Spain’s assets

Gone are the days ofshort­termism, to bereplaced by anapproach that targetsinvestment outcomes

Analysis

FINANCIAL TIMES MONDAY JANUARY 14 2013 13

News analysis

Dutch banks are puttingpressure on asset managersto review their fund rangesin light of a self-imposedban on inducements thatwill begin in January 2014.

Fund managers say theymust now create shareclasses that have commis-sion payments stripped outif they want to maintaintheir lucrative business tieswith large distributors inthe Netherlands such asABN Amro, Rabobank andING.

Current Markets inFinancial InstrumentsDirective (Mifid) rules donot allow member statesmuch room for manoeuvreon the issue of rebates, butthe country’s Authority onthe Financial Markets(AFM) announced in 2011 itwould enforce upon Dutch

banks a “self-regulatory”ban on commissions. Com-mission payments offeredby non-Mifid products werebanned in the Netherlandsin January this year, cover-ing mortgage loans, pay-ment protection insuranceand life insurance.

Hein Kuijpers, head ofintermediary for the Neth-erlands at Schroders, says:“The big banks are onlyselecting commission-freeshare classes at themoment and it will be verydifficult to do business ifyou do not have them at thestart of 2014.

“All the asset managersare launching these shareclasses now. It will havehuge operational issues forbanks.”

Steven de Vries, head offund sales for continentalEurope at Henderson Glo-bal Investors, adds: “Thesebanks have said to us theywant us to launch cleanshare classes if we want tocontinue doing businesswith them. It was an easydecision for us. If we don’tdo it, we jeopardise ourrelationship with them.”

Dutch banks want to

clean up their reputation bybanning commission pay-ments, says Mr de Vries.

“Banks are using this as asign to the market that theysupport transparency, eventhough there is no officialregulation in the Nether-lands yet,” he says.

The Dutch inducementban echoes reforms in the

UK, where rebates paid byproduct providers to advis-ers ended on January 1with the introduction of theretail distribution review(RDR).

Bastiaan Siemers, princi-pal counsellor at Simmons& Simmons, says: “The ideabehind it is the same as theUK, and we see movements

in the Netherlands thatindicate the market shouldbe free from inducements.”

Mr de Vries says Hender-son’s experience with RDRin the UK has given it ahead start in preparing forsimilar moves in the Neth-erlands. “We started prepa-rations for RDR in the UKduring the first quarter oflast year, and by the thirdquarter we had announcedwhat we were going to do.”

For its offshore fund

range based in the Nether-lands, Henderson hasalready developed cleanH-share classes for retailclients, which will belaunched next month witha management fee of 0.6 percent.

Most asset managersoperating in the Nether-lands that have experience

of the UK retail market arelikely to have started workon rolling out clean shareclasses, says Mr de Vries.

“It also depends on yourexisting business in theNetherlands. We have beenactive in the country for 25years and it is a key marketfor us,” he adds.

“Last year was one of thebest for us in terms of fundflows in the Netherlands.We do not want to jeopard-ise that.”

Hans Janssen Daalen,general director of theDutch Fund and Asset Man-agement Association, says:“The Dutch banks haveasked all their asset manag-ers to provide them withnon-rebate share classes assoon as possible.”

Banks in the Netherlandsaccount for more than 95per cent of fund distribu-tion, which means “thesemovements will have greatimpact on the Dutch mar-ket”, adds Mr JanssenDaalen.

David Ricketts is associateeditor on Ignites Europe, anFT service, where this articlefirst appeared

Dutch banks demand fee­free rangesCommission banFund managers aretold to create shareclasses with noinducements, writesDavid Ricketts

Distributors such as ABN Amro are putting on the pressureBloomberg

‘The big banks areonly selectingcommission­freeshare classes atthe moment’

14 FINANCIAL TIMES MONDAY JANUARY 14 2013

Fund Bid Offer D+/- Yield

ACP Partners Investment Managers (Ireland) Limited (IRL)www.acpi.comFSA RecognisedACPI Emerging Mkts FI UCITS Fund EUR E € 115.91 - 0.39 0.00

ACPI Emerging Mkts FI UCITS Fund USD A $ 119.58 - 0.42 0.00

ACPI Global Fixed Income UCITS Fund GBP C £ 144.42 - 0.03 0.00

ACPI Global Fixed Income UCITS Fund EUR B € 139.74 - 0.02 0.00

ACPI Global Fixed Income UCITS Fund USD A $ 141.46 - 0.03 0.00

ACPI India Fixed Income UCITS Fund GBP C £ 88.67 - -0.12 0.00

ACPI India Fixed Income UCITS Fund EUR B € 93.27 - -0.76 0.00

ACPI India Fixed Income UCITS Fund USD A $ 87.65 - 0.42 0.00

ACPI FM Limited (JER)RegulatedACPI Balanced Fund USD $ 10.98 10.99 0.00 0.00

ACPI Global Credit Fund USD C $ 12.64 12.64 0.00 0.00

ACPI Focused Equity Fund USD $ 11.59 11.60 0.15 0.00

ACPI International Bond Fund USD $ 18.47 18.47 0.01 0.00

ACPI Multi-Asset Fund USD $ 10.82 10.82 0.17 0.00

ACPI Multi-Strategy Fund USD $ 179.63 - -0.80 0.00

ACPIOther International FundsACPI Core Strategy Fund USD $ 142.50 - -0.14 -

ACPI Global Credit UCITS Fund EUR C € 11.77 - 0.00 0.00

ACPI Global Credit UCITS Fund USD C $ 11.24 - 0.00 0.00

ACP Partners Strategic Opps Fund USD A $ 123.66 - 0.10 0.00

Q-ACPI India Fixed Income Fund USD A $ 9.91 - 0.05 0.00

ACPI Trading Strategy Fund USD $ 90.04 - 1.47 -

Abbey Life Assurance Company Limited (UK)100 Holdenhurst Road, Bournemouth BH8 8AL 0845 9600 900additional fund prices can be found @ www.abbeylife.co.ukInsurancesLife FundsProp. Acc. Ser 2 1154.30 1215.00 -0.40 -

Selective Acc. Ser 2 1293.20 1361.40 -0.20 -

American Ser. 4 1194.90 1257.80 3.40 -

Custodian Ser. 4 422.40 444.60 -0.30 -

Equity Ser. 4 487.40 513.00 -0.50 -

European Ser 4 480.50 505.80 1.30 -

Fixed Int. Ser. 4 843.90 888.30 -1.50 -

Intl Ser. 4 353.90 372.50 0.50 -

Japan Ser 4 290.20 305.40 -0.30 -

Man. Ser. 4 1449.40 1525.70 -0.70 -

Money Ser. 4 523.40 551.00 0.00 -

Prop. Ser. 4 860.30 905.60 -0.30 -

Custodian Ser 5 408.50 430.00 -0.30 -

International Ser 5 342.30 360.30 0.50 -

Managed Ser 5 1401.80 1475.60 -0.70 -

Money Ser 5 512.50 539.40 0.00 -

Property Ser 5 832.10 875.90 -0.20 -Pension FundsAmerican 1291.70 1359.70 3.80 -

Equity 4219.00 4441.00 -3.80 -

European 940.00 989.50 3.20 -

Fixed Int. 1504.80 1584.00 -3.90 -

International 724.40 762.60 0.50 -

Japan 290.50 305.70 -0.20 -

Managed 3654.50 3846.80 -2.60 -

Property 1959.10 2062.20 -0.80 -

Security 1473.10 1550.60 0.00 -

Selective 1616.30 1701.40 1.20 -Formerly Hill Samuel Life Assurance Ltd100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603Managed Ser A (Life) £ 13.70 14.50 -0.01 -

Managed Ser A (Pensions) £ 9.04 9.51 0.00 -Formerly Target Life Assurance Ltd100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603Managed (Life) 1398.40 1472.00 -0.50 -

Managed Growth (Life) 429.20 451.70 0.00 -

Managed (Pensions) 5417.60 5702.70 -2.50 -

Managed Growth (Pensions) 513.80 540.80 0.00 -additional fund prices can be found on our website

ACTIVE TRADING FUND (IRL)RegulatedActive Trading Fund USD $ 958.48 - 2.75 0.00

Active Trading Fund EUR € 953.18 - 2.79 0.00

Active Trading Fund GBP £ 959.11 - 2.75 0.00

Fund Bid Offer D+/- Yield

Alceda Fund Management S.A.Managed on the Alceda UCITS Platformwww.alceda.luFSA RecognisedAC Risk Parity 7 Fund (EUR A) € 123.87 130.06 -0.16 0.00

AC Risk Parity 7 Fund (GBP A) £ 124.82 131.06 -0.12 0.00

AC Risk Parity 7 Fund (USD A) $ 123.09 129.24 -0.13 0.00

AC Risk Parity 12 Fund (EUR A) € 146.67 154.00 -0.33 0.00

AC Risk Parity 12 Fund (GBP A) £ 110.16 115.67 -0.21 0.00

AC Risk Parity 12 Fund (USD A) $ 157.32 165.19 -0.33 0.00

AC Risk Parity 17 Fund EUR A € 98.74 103.68 -0.31 -

AC Risk Parity 17 Fund GBP A £ 97.96 102.86 -0.31 -

AC Spectrum Fund (EUR A) € 83.24 87.40 -0.29 0.00

AC Spectrum Fund (GBP A) £ 82.74 86.88 -0.29 0.00

AC Spectrum Fund (USD A) $ 82.95 87.10 -0.31 -

Alger SICAV (LUX)RegulatedAmerican Asset Growth A $ 33.28 35.40 0.21 0.00

American Asset Growth I $ 35.39 35.39 0.22 0.00

Allianz Global Investors (UK) Ltd (1200)F (UK)155 Bishopsgate, London EC2M 3AD 0800 073 2001Authorised Inv FundsOEICAllz BRIC Stars A Acc 148.68 - -1.26 0.31

Allz BRIC Stars C Acc 155.93 - -1.32 1.20

Allianz Brazil Fund A Acc 81.47 - -0.45 1.72

Allianz Brazil Fund C ACC 82.23 - -0.45 2.26

Allz Continental European A Acc 729.08 - 5.39 0.36

Allz Continental European C Acc 115.54 - 0.86 -

Allz European Eq Inc A Inc 113.72 - 0.46 4.00

Allz European Eq Inc A Acc 142.35 - 0.57 4.23

Allz EcoTrends A Acc 71.50 - -0.03 0.00

Allz EcoTrends C Acc 73.95 - -0.03 0.00

Allianz Gilt Yield Fund A 161.92 - -0.12 2.77

Allianz Gilt Yield Fund C 166.70 - -0.11 2.77

Allz Dynamic Growth A 168.60 - 0.05 0.69

Allz Dynamic Growth C 184.16 - 0.07 1.62

Allz Dynamic Growth S 144.58 - 0.05 2.02

Allz Japan A 388.09 - -0.33 0.58

Allianz Sterling Total Return Fund A 143.96 - 0.01 4.47

Allianz Sterling Total Return Fund C 144.60 - 0.02 5.03

Allz Total Ret Asian A 547.91 - -3.50 1.86

Allz Total Ret Asian Eqty C Inc 511.34 - -3.26 1.81

Allianz UK Corporate Bond Fund 102.89 - 0.03 5.45

Allz UK Equity A 150.38 - -0.54 2.05

Allz UK Equity C 6317.26 - -14.91 3.28

Allz UK Equity Income A 247.03 - 0.05 5.12

Allz UK Growth A 3562.68 - -0.19 2.69

Allz UK Unconstrained A Acc 163.16 - 0.29 1.47

Allz UK Index A Acc 1513.94 - 1.43 3.20

Allz UK Index A Inc 1135.70 - 1.06 2.96

Allz UK Mid Cap A 2833.17 - 14.37 0.80

Allz US Equity A 289.36 - 1.23 0.21

Allz US Equity C Acc 131.60 - 0.57 1.01

Allz RiskMaster Conservative A Acc 109.10 - -0.32 -

Allz RiskMaster Conservative C Acc 109.76 - -0.32 -

Allz RiskMaster Defensive A Acc 106.98 - -0.32 -

Allz RiskMaster Defensive C Acc 107.67 - -0.32 -

Allz RiskMaster Growth A Acc 111.20 - -0.40 -

Allz RiskMaster Growth C Acc 111.82 - -0.40 -

Allz RiskMaster Moderate A Acc 110.05 - -0.35 -

Allz RiskMaster Moderate C Acc 110.66 - -0.35 -Yield expressed as CAR (Compound Annual Return)

All transactions to Ser A units the sell price will be used

American Century Sicav (LUX)JPM customer service: +352-46-268-5633FSA RecognisedACI Conc Gbl Grwth Eq A Acc $ 11.40 - 0.01 0.00

ACI Conc Gbl Grwth Eq I Acc $ 11.52 - 0.02 0.00

ACI Gbl Grwth Equity Acc F $ 11.91 - 0.01 0.00

ACI Gbl Grwth Equity I Acc F $ 12.18 - 0.02 0.00

ACI US AllCap Grwth Eq A Acc $ 11.36 - 0.00 0.00

Fund Bid Offer D+/- Yield

ACI US AllCap Grwth Eq I Acc $ 11.46 - 0.00 0.00

Amundi Funds (LUX)5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332www.amundi-funds.comFSA RecognisedAbsolute Var 2 EUR £ 97.96 - 0.01 0.00

Bd. Euro Corporate AE Class - R - EUR € 17.09 - -0.04 0.00

Bd. Global AU Class - R - USD $ 25.66 - 0.07 0.00

Eq. Emerging Europe AE Class - R - EUR € 30.82 - -0.37 0.00

Eq. Emerging World AU Class - R - USD $ 97.47 - 0.14 0.00

Eq. Greater China AU Class - R - USD $ 539.67 - 3.19 0.00

Eq. Latin America AU Class - R - USD $ 636.32 - 0.80 0.00

Antares Investment Management LtdOther InternationalAEF Ltd Usd $ 431.70 - 5.51 -

AEF Ltd Eur € 432.00 - 5.56 0.00

Arisaig PartnersOther International FundsArisaig Africa Consumer Fund Limited $ 19.70 - 0.02 0.00

Arisaig Asia Consumer Fund Limited $ 52.47 - -0.04 0.00

Arisaig Latin America Consumer Fund $ 30.62 - 0.11 0.00

ARN INVESTMENT SICAV (LUX)12, rue Eugène Ruppert, L-2453 LuxembourgRegulatedARN Newly Indus.Ec.Fd A -C $ 99.43 - 0.72 0.00

Artemis Fund Managers Ltd (1200)F (UK)57 St. James's Street, London SW1A 1LD 0800 092 2051Authorised Inv FundsArtemis Capital R ACC 909.93 961.92 4.59 2.29

Artemis European Growth R Acc 184.94 195.30 1.18 2.34

Artemis European Opps R Acc 57.07 60.32 0.29 0.62

Artemis Global Energy R Acc 43.79 46.47 0.00 0.00

Artemis Global Growth R Acc 123.53 130.47 0.22 0.97

Artemis Global Income R Acc 64.72 68.53 0.22 5.15

Artemis Global Income R Inc 58.80 62.26 0.20 5.36

Artemis Global select R Acc 52.73 55.78 -0.05 0.13

Artemis High Income R Inc 75.33 80.80 0.09 6.45

Artemis Income R Inc 176.45 187.17 0.18 5.00

Artemis Income R Acc 268.31 284.62 0.28 4.83

Artemis Monthly Dist R Inc 53.68 56.96 0.18 -

Artemis Strategic Assets R Acc 69.26 73.30 0.24 0.79

Artemis Strategic Bond R M Acc 74.44 79.14 -0.03 4.36

Artemis Strategic Bond R M Inc 52.77 56.10 -0.02 4.44

Artemis Strategic Bond R Q Acc 74.52 79.22 -0.02 4.42

Artemis Strategic Bond R Q Inc 52.73 56.06 -0.02 4.52

Artemis UK Growth R Acc 313.81 333.32 0.99 1.03

Artemis UK Smaller Cos R Acc 835.18 902.58 6.84 0.63

Artemis UK Special Sits R Acc 406.48 433.22 1.12 1.40

Artemis Investment Management LLP (CYM)RegulatedArtemis Gbl Hedge Fd Ltd GBP £ 51.96 - -0.11 0.00

Artemis Gbl Hedge Fd Ltd EUR € 49.11 - -0.13 -

Artemis Gbl Hedge Fd Ltd USD $ 52.59 - -0.12 -

Artemis UK Hedge Fd Ltd EUR € 153.41 - -3.03 -

Artemis UK Hedge Fd Ltd GBP £ 168.41 - -3.36 -

Artemis UK Hedge Fd Ltd USD $ 159.83 - -3.12 0.00

Artisan Partners Global Funds PLC (IRL)Beaux Lane House, Mercer Street Lower, Dublin 2, IrelandTel: 44 (0) 207 766 7130FSA RecognisedArtisan Global Funds plcArtisan Emerging Markets Fund Class I EUR € 8.60 - -0.09 0.00

Artisan Global Equity Fund Class I USD Acc $ 11.29 - 0.07 -

Artisan Global Opportunities Fund Class I EUR € 10.50 - -0.08 -

Artisan Global Value Fund Class I USD Acc $ 12.09 - 0.08 0.00

Artisan Value Fund Class I USD Acc $ 11.84 - 0.13 0.00

Ashburton Fund Managers Limited (JER)17 Hilary Street, St Helier, Jersey JE4 8SJ 01534 512000FSA RecognisedAshburton Global Funds PCCSterling Asset Mgt. Fund PC £ 2.4273 2.5487 0.0034 0.71

Sterling Asset Mgt. Fund PC - Class I £ 106.3294 111.6459 0.1505 0.00

Sterling Intl. Eq. Fund PC £ 53.3944 56.0641 0.2096 0.00

Fund Bid Offer D+/- Yield

Dollar Intl. Eq. Fund PC $ 10.0718 10.5754 0.0740 0.00

European Eq. Fund PC € 4.9462 5.1935 -0.0217 0.00

European Eq. - £ Feeder PC £ 1.3068 1.3721 0.0063 0.00

European Eq - £ Feeder PC - Class I £ 113.7720 119.4606 0.5283 0.00

Chindia Eq. - £ Feeder PC £ 1.1350 1.1918 -0.0146 0.00

Chindia Eq - £ Feeder PC - Class I £ 77.7512 81.6388 -0.9754 0.00

Ashburton Fund Managers Limited (JER)RegulatedAshburton Replica Portfolio LtdAshburton Replica Dollar Acc USD $ 100.3927 105.4123 0.2071 -

£ Asset Management Fund £ 36.3252 38.1415 0.0296 0.00

$ Asset Management Fund $ 32.1125 33.7181 0.0613 0.00

Euro Asset Management Fund € 1.4838 1.5580 -0.0029 0.00

Multi Asset Cautious Fund GBP £ 1.0931 1.1478 0.0004 0.45

Multi Asset Cautious Fund GBP - Class I £ 101.3689 106.4373 0.0379 1.19

Multi Asset Balanced Fund EUR € 1.0067 1.0570 -0.0021 0.09

Multi Asset Balanced Fund GBP £ 1.1874 1.2468 0.0011 0.17

Multi Asset Balanced Fund USD $ 1.1685 1.2269 0.0025 0.38

Multi Asset Balanced Fund GBP - Class I £ 105.7106 110.9961 0.0977 0.66

Multi Asset Balanced Fund USD - Class I $ 102.2305 107.3420 0.2253 0.55

Multi Asset Balanced Fund EUR - Class I € 101.7592 106.8472 -0.2126 0.51

Multi Asset Aggressive Fund GBP £ 1.0993 1.1543 0.0009 0.15Ashburton Emerging Markets Funds LimitedChindia Eq Fund $ 0.9473 0.9947 -0.0087 0.00

Chindia Eq - Class I $ 124.6538 130.8865 -1.0627 0.00

Ashmore Management Company Ltd (GSY)RegulatedEmerging Mkts Liquid Inv P'folio $ 10.38 - -0.46 0.00

Local Currency Debt Pflo $ 29.41 - -0.12 0.00

Russian Debt Portfolio $ 72.19 - -5.73 0.00

Ashmore Asian Recovery $ 29.82 - -0.56 0.00

Multi-Strategy $ 17.19 - -0.04 0.00

Emerging Mkts Global Inv Pfolio $ 8.03 - -0.13 0.00

Emerging Mkts Corporate High Yield $ 123.62 - 1.74 0.00

Turkish Debt Fund Ltd $ 105.56 - 3.93 0.00

Ashmore Sicav (LUX)2 rue Albert Borschette L-1246 LuxembourgFSA RecognisedEM Equity Select USD F $ 124.66 - 1.03 0.00

EM Mkts Corp.Debt USD F $ 124.33 - 0.35 3.92

EM Mkts Debt NOK F NKr 121.10 - 0.15 10.75

EM Mkts Debt GBP F £ 126.31 - 0.15 3.74

EM Mkts Inv.Grade Corp. Debt USD F $ 126.88 - 0.12 0.00

EM Mkts Loc.Ccy Bd USD F $ 124.44 - 0.90 3.71

EM Mkts Loc.Ccy Money Mkt USD F $ 105.15 - 0.63 0.00

EM Mkts Sov.Debt USD F $ 122.32 - -0.04 0.00

EM Mkts Sov.Inv.Grade Debt USD F $ 124.93 - -0.03 0.00

Emerging Markets Debt Retail USD $ 109.98 - 0.15 5.20

Emerging Markets Debt Retail EUR € 169.53 - 0.20 14.80

Local Currency GBP F £ 111.41 - 0.72 0.28

Local Currency Retail EUR F € 104.51 - 0.67 0.35

Local Currency Retail USD F $ 115.66 - 0.75 0.52

Aspect Capital Ltd (UK)Other International FundsAspect Diversified USD $ 317.89 - 3.45 0.00

Aspect Diversified EUR € 190.29 - 2.04 -

Aspect Diversified GBP £ 97.01 - -4.45 -

Aspect Diversified CHF SFr 91.63 - 0.96 0.00

Aspect Diversified Trends USD $ 95.74 - 0.55 0.00

Aspect Diversified Trends EUR € 95.54 - 0.52 0.00

Aspect Diversified Trends GBP £ 98.26 - 0.55 0.00

Atlantas Sicav (LUX)RegulatedAmerican Dynamic $ 2397.94 - 69.09 0.00

American One $ 2176.08 - 49.05 0.00

Bond Global € 1167.74 - 15.88 0.00

Eurocroissance € 633.64 - 11.04 0.00

Far East $ 629.09 - 9.73 0.00

BDT Invest LLP (IRL)33 St James's Square, London, SW1Y 4JSFSA RecognisedBDT Asian Focus GBP A £ 29.35 - -0.27 0.85

BDT Asian Focus GBP B £ 31.35 - -0.28 0.79

BDT Asian Focus EUR A € 22.17 - -0.34 0.89

BDT Asian Focus EUR B € 22.83 - -0.35 0.87

BDT Asian Focus USD A $ 26.68 - -0.02 0.89

Fund Bid Offer D+/- Yield

BDT Asian Focus USD B $ 28.46 - -0.02 0.84

BDT Oriental Focus USD A $ 24.34 - 0.02 0.90

BDT Oriental Focus USD B $ 25.79 - 0.02 0.85

BDT Oriental Focus EUR A € 22.47 - -0.31 0.84

BDT Oriental Focus EUR B € 23.94 - -0.33 0.79

BDT Oriental Focus GBP A £ 29.95 - -0.22 0.90

BDT Oriental Focus GBP B £ 31.56 - -0.24 0.86

BDT Japanese Focus GBP A £ 7.07 - 0.06 0.00

BDT Japanese Focus GBP B £ 7.16 - 0.06 0.00

BDT Japanese Focus EUR A € 6.68 - -0.08 0.00

BDT Japanese Focus EUR B € 6.57 - -0.09 0.00

BDT Japanese Focus USD A $ 8.39 - 0.01 0.00

BDT Japanese Focus USD B $ 8.64 - 0.01 0.00

BLME Asset Management (LUX)BLME Sharia'a Umbrella Fund SICAV SIFRegulated$ Income Fund - Share Class A Acc $ 1118.48 - 1.37 0.00

$ Income Fund - Share Class B Acc $ 1134.57 - 1.41 0.00

$ Income Fund - Share Class G Acc £ 1052.87 1052.87 1.28 0.00

$ High Yield Fund - Share Class A Acc $ 1142.35 - 4.96 0.00

BNP Paribas Investment Partners (LUX)10, Harewood Avenue, London NW1 6AAInvestors Services (44) 020 7595 6762FSA RecognisedBNP Paribas InsticashBNP Paribas Insticash EUR F € 116.61 - 0.00 0.00

BNP Paribas Insticash GBP F £ 128.49 - 0.00 0.00BNP Paribas L1BNPP L1 Bd Asia ex-Japan F $ 148.88 - -0.26 0.00

BNPP L1 Bd Best Selection Wrld Emerging F $ 242.24 - 0.10 0.00

BNPP L1 Bd Best Selection Wrld Emerging Inc £ 145.63 - -0.84 5.96

BNPP L1 Bd Currencies World F € 1563.13 - -12.50 0.00

BNPP L1 Bd Europe Emerging F € 601.71 - -2.80 0.00

BNPP L11 Bd World F € 312.80 - -3.04 0.00

BNPP L1 Bd World Emerging Corporate Inc $ 116.82 - 0.07 0.00

BNPP L1 Bd World Emerging Local F $ 175.45 - 0.45 0.00

BNPP L1 Bd World Emerging Local Inc £ 107.38 - -0.37 6.37

BNPP L1 Bd World High Yield F € 90.01 - 0.07 0.00

BNPP L1 Eq Asia Emerging F $ 96.15 - -0.32 0.00

BNPP L1 Eq Best Sel Asia ex-Japan F € 433.97 - -6.46 0.00

BNPP L1 Eq Best Sel Euro F € 350.06 - -0.87 0.00

BNPP L1 Eq Best Sel Europe F € 160.24 - -0.61 0.00

BNPP L1 Eq Best Sel Europe Inc £ 105.75 - 0.32 3.68

BNPP L1 Eq Best Sel Europe ex-UK F € 114.73 - -0.32 0.00

BNPP L1 Eq Best Sel Europe ex-UK Inc £ 108.42 - 0.45 2.30

BNPP L1 Eq Best Sel USA F $ 329.91 - 2.82 0.00

BNPP L1 Eq China F $ 316.14 - -2.68 0.00

BNPP L1 Eq Euro F € 247.80 - -0.85 0.00

BNPP L1 Eq Europe F € 446.43 - -1.91 0.00

BNPP L1 Eq Europe Emerging F € 1182.29 - -14.27 0.00

BNPP L1 Eq Europe Growth F € 35.25 - -0.13 0.00

BNPP L1 Eq High Div Pacific F € 60.42 - -0.47 0.00

BNPP L1 Eq India F $ 100.92 - 0.40 0.00

BNPP L1 Eq Indonesia F $ 230.85 - -2.89 0.00

BNPP L1 Eq Pacific ex-Japan F € 166.84 - -2.47 0.00

BNPP L1 Eq Russia F € 101.01 - -1.22 0.00

BNPP L1 Eq Russia Inc £ 115.40 - -0.59 2.03

BNPP L1 Eq Turkey F € 276.27 - -3.81 0.00

BNPP L1 Eq USA Growth F $ 172.80 - 1.15 0.00

BNPP L1 Eq USA Small Caps F $ 120.91 - 0.17 0.00

BNPP L1 Eq World Emerging F $ 610.18 - -1.18 0.00

BNPP L1 Eq World Energy F € 597.16 - -1.95 0.00

BNPP L1 Eq World Health Care F € 501.00 - -1.81 0.00

BNPP L1 Eq World Materials F € 85.39 - -0.59 0.00

BNPP L1 Eq World Utilities F € 102.27 - -1.01 0.00

BNPP L1 Green Tigers F € 139.25 - -2.84 0.00

BNPP L1 Opportunities USA F $ 93.99 - 0.75 0.00

BNPP L1 Opportunities USA Inc £ 123.87 - 0.24 2.48

BNPP L1 Opportunities-H USA Inc £ 40.23 - 0.32 2.37

BNPP L1 Opportunities World F € 99.39 - -0.81 0.00

BNPP L1 Real Est Securities Eur F € 170.40 - -1.45 0.00

BNPP L1 Real Est Securities Eur Inc £ 102.16 - -0.16 3.49

BNPP L1 V350 F € 107.47 - 0.25 0.00

BNPP L1 V350-H-Inc £ 97.81 - 0.24 0.85

Fund Bid Offer D+/- Yield

BNPP L1 Wrld Commodities F $ 88.45 - 0.64 0.00ParvestBond Euro € 194.31 - 0.11 0.00

Bond Euro Medium Term € 171.18 - 0.04 0.00

Bond USA High Yield $ 208.50 - 0.23 0.00

Bond USD Gov Inc $ 124.57 - -0.22 2.57

Bond World Corporate Inc $ 108.21 - -0.20 3.52

Bond World Emerging $ 412.27 - -0.54 0.00

Bond World Inflation-Ld € 139.18 - 1.42 0.00

Commod Arbitrage F $ 100.48 - -0.14 0.00

Equity Australia A$ 701.28 - -1.49 0.00

Equity Brazil Inc $ 119.58 - 0.24 0.00

Equity BRIC $ 138.60 - -0.18 0.00

Equity Japan Inc ¥ 2393.00 - 32.00 2.33

Equity Japan Small Cap Inc ¥ 3460.00 - 2.00 1.52

Equity Latin America Inc $ 602.58 - 2.05 3.02

Equity Russia Opp.Inc $ 75.07 - 0.13 1.89

Equity South Korea Inc $ 94.04 - -0.23 1.32

Equity USA Inc $ 63.02 - 0.30 2.06

Equity USA Mid Cap $ 144.85 - 0.60 0.00

Equity USA Value Inc $ 79.69 - 0.88 2.02

Flexible Bond Europe Corp. € 117.95 - 0.06 0.00

Flexible Bond Wrld Inc $ 19.66 - 0.02 2.36

Step 80 Wrld Emerging € 96.96 - 0.78 0.00

Step 90 EURO F € 1098.11 - 0.23 0.00

Wrld Agriculture F € 95.26 - 0.26 0.00

Wrld Agriculture USD F $ 77.64 - 0.22 0.00

BNP ParibasOther International FundsCampbell FME Large $ 298.44 - -0.01 0.00

BNP GLF USD $ 1223.46 - 0.00 0.00

BNY Mellon Fund Managers Limited (1200)F (UK)BNY Mellon House, Ingrave Road, Brentwood, Essex CM15 8TGClient Services Helpline: 0800 614330 Broker 0500 660000Authorised Inv FundsBNY Mellon Investment FundsBNY Mellon Global Strategic Bond Fund 118.61 - 0.01 3.04

BNY Mellon Long-Term Global Equity Fund 142.58 - 0.19 0.33

BNY Mellon American 116.57 - 0.47 0.00

Newton Asian Income 184.51 - -1.17 4.53

Newton Balanced 161.89 - 0.25 2.79

Newton Contl European 165.79 - 0.85 1.83

Newton Global Dynamic Bd 110.87 - -0.02 4.60

Newton Global Equity 81.72 - 0.21 0.78

Newton Global Higher Income 133.41 - 0.10 4.33

Newton Global Opportunities 156.19 - 0.34 0.83

Newton Higher Income 54.33 - -0.02 5.25

Newton UK Equity Fund 652.36 - -0.01 2.39

Newton International Bond 211.69 - -0.56 1.43

Newton Managed 506.95 - 1.12 1.50

Newton Oriental 525.33 - -3.65 0.38

Newton Real Return A 115.52 - 0.10 3.14

Newton UK Opportunities 210.98 - 0.28 1.80

BNY Mellon Global Funds (IRL)160 Queen Victoria Street EC4V 4LA +44 (0) 131 305 3131FSA RecognisedAsian Eqty A USD F $ 3.31 - -0.01 0.00

BNY Mellon Absolute Return Equity £ 1.09 - 0.00 0.00

BNY Mellon Asian Equity Fund $ 3.79 - -0.01 0.00

BNY Mellon Brazil Equity $ 1.28 - 0.00 0.00

BNY Mellon Emerging Markets Local Currency Investment Grade Debt Fund $ 1.01 - 0.00 0.00

BNY Mellon Emerging Markets Corporate Debt Fund $ 112.68 - 0.01 -

BNY Mellon Euroland Bond Fund € 1.73 - 0.00 0.00

BNY Mellon Global Equity Higher Income $ 1.19 - 0.00 0.00

BNY Mellon Global Property Secs € 1.24 - -0.01 0.00

BNY Mellon Global Bond Fund $ 2.40 - 0.00 0.00

BNY Mellon Global Equity Fund $ 1.66 - 0.01 0.00

BNY Mellon Global High Yield Bond € 1.60 - 0.00 0.00

BNY Mellon Global Opportunities Fund $ 1.95 - 0.01 0.00

BNY Mellon Global Real Return EUR Fund € 1.17 - 0.00 0.00

BNY Mellon Global Real Return $ 1.25 - 0.00 0.00

FTfm

The fund prices quoted in FTfm aresupplied by the operator of therelevant fund. Details of funds,including prices, are for informationalpurposes only. The Financial TimesLimited makes no representation as totheir accuracy or completeness, andthey should not be relied upon whenmaking an investment decision. Thesale of interests in the funds listed inFTfm in certain jurisdictions may berestricted by law and the funds willnot necessarily be available to personsin all jurisdictions in which thepublication circulates. Persons in anydoubt should take appropriateprofessional advice.Data collated by Morningstar. For allother queries, contact the FT atreader.enquiries@ft.com. The fundprices published in this edition along

with additional information are alsoavailable on the Financial Timeswebsite at www.ft.com/funds.Charges for this advertising service arebased on the number of linespublished and the classification of thefund. Please contact data@ft.com orcall +44 (0)20 7873 3132.The funds published on these pagesare grouped together by fundmanagement company.Prices are in pence unless otherwiseindicated and those designated $ withno prefix refer to US dollars. Yields %allow for buying expenses.Prices of certain older insurance linkedplans are subject to capital gains taxon sales. Some Property Unit Trustsare limited to investors who are UKtax exempt.All dealings are subject to individual

Trust Deed rules. The sale prices forthese funds are estimates.Guide to pricing of AuthorisedInvestment Funds.Compiled with the assistance of theIMA. The Investment ManagementAssociation, 65 Kingsway, LondonWC2B 6TD. +44 (0)20 7831 0898. Allfunds within this section, whetherOEICs or unit trusts are authorised inthe UK by the Financial ServicesAuthority. The prices quoted shouldonly be used as a guide.OEIC: Open­Ended InvestmentCompany. Similar to a unit trust butusing a company rather than a truststructure.Share Classes: Separate classes ofshare are denoted by a letter ornumber after the name of the fund.Different classes are issued to reflect adifferent currency, charging structureor type of holder.Buying price: Also called offer price.The price at which units in a unit trustare bought by investors. Includes

manager’s initial charge.Selling price: Also called bid price.The price at which units in a unit trustare sold by investors.Single price: Based on a mid­marketvaluation of the underlyinginvestments. The buying and sellingprice for shares of an OEIC and unitsof a single priced unit trust are thesame.Exit Charges: The letter E denotesthat an exit charge may be madewhen you sell units, contact themanager/operator for full details.Time: The time shown alongside thefund manager’s/operator’s name is thetime of the unit trust’s/OEIC’svaluation point unless another time isindicated by the symbol alongside theindividual unit trust/OEIC name.The symbols are as follows: ✠ 0001to 1100 hours; ♦ 1101 to 1400 hours;▲1401 to 1700 hours; # 1701 tomidnight. Daily dealing prices are seton the basis of the valuation point, ashort period of time may elapse before

prices become available.Yield: Funds comprising mainly ofbonds normally quote a grossredemption yield after all charges butbefore tax has been deducted. Fundsmainly made up of equities normallyquote a yield representing theestimated annual payout net of tax forbasic rate taxpayer. For furtherinformation contact the managementcompany.Historic pricing: The letter H denotesthat the managers/operators willnormally deal on the price set at themost recent valuation.The prices shown are the latestavailable before publication and maynot be the current dealing levelsbecause of an intervening portfoliorevaluation or a switch to a forwardpricing basis. The managers/operatorsmust deal at a forward price onrequest, and may move to forwardpricing at any time.Forward pricing: The letter F denotesthat that managers/operators deal at

the price to be set at the nextvaluation. Investors can be given nodefinite price in advance of thepurchase or sale being carried out.The prices appearing in the newspaperare the most recent provided by themanagers/operators. Schemeparticulars, prospectus, key featuresand reports: The most recent report,scheme particulars, prospectus andkey features document may beobtained free of charge from fundmanagers/operators.* Indicates funds which do not priceon Fridays.Other explanatory notes are containedin the last column of the FT ManagedFunds Service.

As of 02/03/2009 FT Fund Ratingswill no longer appear in FTfm.Prospectus data, price histories,charges and risk analytics on thefunds within these pages is availableonline at www.ft.com/funds.

Guide to data

FINANCIAL TIMES MONDAY JANUARY 14 2013 15

Fund Bid Offer D+/- Yield

BNY Mellon Long-Term Global Equity GBP € 1.41 - -0.01 0.00

BNY Mellon UK Equity Sterling £ 1.69 - 0.00 0.00

BNY Mellon US Equity Fund $ 1.22 - 0.00 0.00

Emerging Mkts Debt C USD F $ 2.09 - 0.00 0.00

Emerging Mkts Debt LC - C USD F $ 1.75 - 0.00 0.00

Evolution Global Alpha C EUR F € 97.27 - -0.12 0.00

Global Dynamic Bond Fund C USD F $ 1.14 - 0.00 0.00

Bank of America Cap Mgmt (Ireland) Ltd (IRL)RegulatedGlobal Liquidity USD $ 1.00 - 0.00 0.28

Barclays Investment Funds (CI) Ltd (JER)39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800FSA RecognisedBond FundsSterling Bond F £ 0.45 - 0.00 2.51

Baring Fund Managers Ltd (1200)F (UK)155 Bishopsgate London EC2M 3XYDealing and Enquiries 020 7214 1004Fund Information: www.barings.comAuthorised Inv FundsChina Growth A Acc 111.60 - -0.70 0.00

Eastern Acc GBP 566.60 - 2.10 0.23

Eastern Inc GBP 557.30 - 2.00 0.23

Emerging Markets A Acc 243.30 - -1.30 0.53

Europe Select Inc GBP 1891.00 - 10.00 0.62

European Growth Inc 836.20 881.20 5.30 1.32

German Growth Acc GBP 451.70 - 3.50 1.12

German Growth Inc GBP 419.10 - 3.30 1.09

Glb Agriculture A Acc GBP 157.60 - 0.10 0.00

Gbl Agriculture A Acc EUR € 1.92 - -0.01 0.00

Gbl Agriculture A Acc USD $ 2.55 - 0.01 0.00

Global Bond Inc 118.00 123.90 -0.30 0.91

Global Growth Inc 298.50 314.30 1.00 0.07

Japan Growth Acc 103.00 108.50 0.10 0.65

Korea Acc 268.70 284.50 -0.90 0.00

Multi Asset A Acc ... C 142.40 - -0.10 0.51

Multi Asset A Inc ... C 139.40 - 0.00 0.50

Portfolio Acc 574.60 608.30 -0.80 1.71

Portfolio Inc 239.70 253.70 -0.30 1.73

UK Growth Inc 212.20 223.90 -0.20 1.48Charity Fund0800 032 6347 (charity enquiries)Targeted Return Fund Acc 125.30 125.90 0.00 3.36

Targeted Return Fund Inc 105.20 105.70 0.00 3.43

Baring International Fd Mgrs (Ireland) (IRL)Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004FSA RecognisedASEAN Frontiers A GBP Inc £ 116.45 - -0.40 0.59

Asia Growth A GBP Inc H £ 39.32 - -0.25 0.00

Australia A GBP Inc £ 78.08 - -0.58 1.98

Dynamic Emerging Markets A GBP Acc F £ 10.32 - -0.04 0.00

Eastern Europe A GBP Inc £ 65.74 - -0.16 0.21

Emerging Mkt Debt LC A GBP Hedged Inc £ 11.66 - -0.01 4.28

Emerging Opportunities A GBP Inc H £ 22.22 - -0.08 0.00

Europa A USD Inc H $ 44.07 - 0.25 1.02

Glb Aggregate Bond A USD Inc H $ 11.33 - 0.00 1.81

Glb Emerging Markets A GBP Inc H £ 21.45 - -0.11 0.29

Glb Select A GBP Inc H £ 8.53 - 0.04 0.00

Glb Resources A GBP Inc H £ 14.57 - 0.01 0.00

High Yield Bond A GBP Hedged Inc H £ 7.42 - 0.00 6.55

Hong Kong China A GBP Inc £ 525.32 - -4.66 0.00

India Fund - Class A GBP Inc £ 10.55 - -0.09 0.00

International Bond A GBP Inc F £ 17.44 - -0.06 2.25

Latin America A USD Inc H $ 48.52 - -0.16 1.39

MENA A GBP Inc F * £ 10.35 - 0.00 1.28

Baring Global Mining Fund - Class A GBP Inc £ 7.81 - 0.00 -

Baring International Fd Mgrs (Ireland) (IRL)RegulatedChina A-Share A GBP Inc £ 5.70 - 0.14 0.00

Barings (Luxembourg) (LUX)FSA RecognisedRussia A GBP Inc F £ 37.31 - -0.27 0.00

Barmac Asset Management Ltd (UK)2 The Boulevard, City West One Office Park Leeds LS12 6NTAuthorised Corporate Director - Capita Financial ManagersDealing: 0845 922 0044Authorised Inv FundsRetail Accumulation 2 100.42 - 0.35 0.00

Retail Income 2 99.39 - 0.34 0.00

The Castleton Growth Fund Ret Acc F 97.96 - 0.34 0.00

The Castleton Growth Fund Ret Inc F 98.44 - 0.34 0.86

Bedlam Funds Plc (IRL)20 Abchurch Lane, London, EC4N 7BBDealing: 00 3531 542 2907 Enquiries: 00 4420 7648 4300FSA RecognisedBedlam Global A £ 174.84 174.84 0.86 0.00

Bedlam Global B £ 182.92 182.92 0.91 0.23

Bedlam Emerging Markets A £ 235.18 235.18 0.45 0.00

Bedlam Emerging Markets B £ 234.10 234.10 0.37 0.80

Bedlam Europe A £ 130.84 130.84 1.04 0.00

Bedlam Europe B £ 137.01 137.01 1.10 1.44

Bedlam Japan A £ 78.06 78.06 -0.07 0.00

Bedlam Japan B £ 76.86 76.86 -0.06 0.20

Bedlam UK A £ 126.54 126.54 0.45 0.00

Bedlam UK B £ 126.71 126.71 0.46 2.09

Bedlam Global Income Fund £ 90.01 90.01 0.50 4.34

BlackRock (JER)RegulatedBlackRock UK Property £ 33.71 - -0.16 4.24

BLK Intl Gold & General $ 9.74 10.26 0.13 0.00

Blairmore Funds PLCFSA RecognisedSmith & Williamson Investment ManagementAdministrators - BNP ParibasBlairmore Global Equity fund $ 11.45 - 0.07 0.00

Fund Bid Offer D+/- Yield

Blakeney Management Ltd (LUX)RegulatedBlakeney Investors Initial Ser.A $ 29.31 - 0.95 0.00

Blakeney Investors-S08/08 $ 8.27 - 0.27 0.00

Blakeney Investors-S11/08 $ 12.56 - 0.41 0.00

Blakeney Investors-S10/09 $ 10.87 - 0.36 0.00

Blakeney Investors-S04/10 $ 10.20 - 0.33 0.00

Blakeney Investors-S09/10 $ 10.50 - 0.34 0.00

Blakeney Investors-S11/10 $ 10.06 - 0.32 0.00

Blakeney Investors-S06/12 $ 11.07 - 0.30 -

BlueBay Asset Management LLP (LUX)RegulatedBlueBay Em Mkt Abs Ret Bd IN € 105.52 - -0.25 0.00

BlueBay Em Mkt Bd B - USD $ 290.32 - -0.44 0.00

BlueBay Em Mkt Corp Bd B $ 167.10 - 0.88 0.00

BlueBay Em Mkt Sel Bd B - USD $ 172.92 - 0.26 0.00

BlueBay Emg Mkt Loc Ccy Bd B - USD $ 182.23 - 0.85 0.00

BlueBay Gbl Convert Bd I - USD $ 172.40 - 0.76 0.00

BlueBay Gbl High Yield Bd B $ 121.18 - 0.77 0.00

BlueBay High Yield B - EUR € 304.09 - 2.49 0.00

BlueBay High Yield Corp Bd B € 129.32 - 1.06 0.00

BlueBay Inv Grd B - EUR € 158.09 - -0.19 0.00

BlueBay Inv Grd B Euro Gov Bd Fund € 125.25 - 0.43 0.00

BlueBay Inv Grd I Euro Agg Bd Fund € 125.45 - 0.27 0.00

BlueBay Inv Grd Libor Fd B € 122.96 - 0.14 0.00

BlueBay Struct.Fds: High Inc Loan Fd € 178.13 - 0.80 0.00

BlueBay Struct.Fds: High Yield Enh Fd € 204.21 - 1.69 0.00

BlueBay Asset Management LLP (CYM)RegulatedBlueBay Distressed Opp Fd Lim A £ 121.05 - 3.43 0.00

Bluebay Macro Fd A $ 128.55 - 0.46 0.00

Bonfield Asset Management LimitedOther International FundsThe Longbow New Europe Fund $ 57.65 57.65 -0.37 0.00

BONHOTEOther International FundsBonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6999.00 - -39.00 2.01

Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9092.00 - 39.00 0.00

Braemar Group PCC Limited (GSY)RegulatedUK Agricultural Class A £ 1.12 - 0.01 0.00

UK Agricultural Class B £ 1.21 - 0.01 0.00

Student Accom Class A £ 1.43 - 0.00 0.00

Student Accom Class B £ 1.12 - 0.00 0.00

CAF Financial Solutions (UK)Kings Hill, West Malling, Kent 03000 123 222Property & Other UK Unit TrustsCAF UK Equitrack Inc Fd 64.46 64.46 0.05 3.79

CAF UK Equitrack Acc Fd 82.93 82.93 0.06 3.69

IM CAF Alternative Strategies A class Acc 100.92 - 0.18 0.00

IM CAF Alternative Strategies A class Inc 100.93 - 0.18 0.00

IM CAF Fixed Interest A class Acc 106.60 - 0.05 2.36

IM CAF Fixed Interest A class Inc 102.58 - 0.05 2.29

IM CAF Fixed Interest B class Acc 106.86 - 0.05 2.26

IM CAF Fixed Interest B class Inc 102.70 - 0.05 2.29

IM CAF International Equity A Class Acc 106.12 - 0.32 0.42

IM CAF International Equity A Class Inc 107.26 - 0.32 0.41

IM CAF UK Equity A Class Acc 115.50 - 0.29 2.36

IM CAF UK Equity A Class Inc 111.63 - 0.28 2.40

IM CAF UK Equity B Class Acc 115.50 - 0.29 2.36

IM CAF UK Equity B Class Inc 111.62 - 0.28 2.40

CCLA Investment Management Ltd (UK)Senator House 85 Queen Victoria Street London EC4V 4ETAuthorised Inv FundsThe Public Sector Deposit FundThe Public Sector Deposit Fund-share class 1 F 100.00 - 0.00 0.48

The Public Sector Deposit Fund-share class 2 F 100.00 - 0.00 0.28

The Public Sector Deposit Fund-share class 3 F 100.00 - 0.00 0.33

The Public Sector Deposit Fund-share class 4 F 100.00 - 0.00 0.38

The Public Sector Deposit Fund-share class 5 F 100.00 - 0.00 0.28

CCLA Investment Management Ltd (UK)Senator House 85 Queen Victoria Street London EC4V 4ETProperty & Other UK Unit TrustsCBF Church of England FundsInvestment Inc 1146.77 1164.11 20.76 4.17

Investment Acc 2093.10 2124.74 37.90 -

Global Equity Inc 137.19 138.71 2.70 4.66

Global Equity Acc 177.49 179.45 3.50 -

UK Equity Inc 124.23 125.47 2.53 4.46

UK Equity Acc 164.29 165.95 3.32 -

Fixed Interest Inc 162.67 163.33 -2.33 5.39

Fixed Interest Acc 438.12 439.88 -6.26 -

Property Fund Inc 109.44 113.11 -0.76 7.30

Property Fund Acc 164.32 169.83 -0.14 -COIF Charity Funds (UK)Investment Inc 1051.45 1063.09 -2.21 4.22

Investment Acc 8912.50 9011.08 -18.75 -

Ethical Invest Inc 163.79 165.61 -0.33 4.28

Ethical Invest Acc 185.21 187.25 -0.36 -

Global Equity Inc 129.19 130.61 -0.28 4.88

Global Equity Acc 165.73 167.57 -0.38 -

Fixed Interest Inc 135.52 136.06 0.92 5.29

Fixed Interest Acc 681.30 684.04 4.57 -

Property Inc 94.22 97.37 -0.60 7.77

Property Acc 176.17 182.07 -0.06 -Local Authorities Property Fd (LAMIT) (UK)Property 224.56 235.74 -1.74 5.99

Fund Bid Offer D+/- Yield

CG Asset Management Limited (IRL)Northern Trust, George?s Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland00 353 1 434 5098FSA RecognisedCG Portfolio Fund PlcReal Return Cls A £ 188.45 188.45 -0.03 1.96

Dollar Fund Cls D £ 137.47 137.47 -0.04 1.80

Capital Value Fund Cls V £ 121.92 121.92 0.09 0.27Regulated (IRL)Capital Gearing Portfolio Fund Plc £ 25242.04 - 8.93 0.71

CIS Unit Managers Ltd (1200)F (UK)PO Box 105, Manchester M4 8BB 08457 464646Authorised Inv FundsCorporate Bd Inc Tst 88.98 93.66 0.03 4.39

Sustainable Leaders A 337.00 - 0.40 1.45

European Growth 85.61 90.11 0.39 1.71

UK Growth 392.70 413.30 0.60 1.59

UK Income With Growth 200.40 210.90 0.40 4.76

US Growth 98.04 103.20 0.74 0.00

CIS Sustainable Diversified Trust A £ 1.32 - 0.00 1.84

CIS Sustainable World Trust A 126.60 - 0.10 1.41Additional Funds Available

Please see www.cis.co.uk for details

CACEIS (Switzerland) SATel: +41 22 360 94 00 www.caceis.chOther International FundsDynamic Ratchet Bond Fund-Japan ¥ 5508.00 - 36.00 0.00

Capita Financial Managers (UK)Ibex House, 42-47 Minories, London, EC3N 1DXOrder Desk 08459 220044 Switchboard 0870 607 2555Authorised Inv FundsCF Adam Worldwide Fund Acc 619.01 642.79 0.82 1.87

CF Adam Worldwide Fund Inc 408.33 424.02 0.54 1.87

CF Eden Global Multi-Strategy Fund A Acc 107.22 - -0.01 0.00

CF Eden Global Multi-Strategy Fund A Inc 102.01 - -0.01 0.00

CF Eden Global Multi Strategy Fund C Acc 106.58 - 0.00 -

CF Eden Global Multi Strategy Fund C Inc 106.58 - 0.00 -

CF Eden UK Select Opportunities Fund A Acc 123.52 - -0.12 0.26

CF Eden UK Select Opportunities Fund A Inc 123.21 - -0.12 0.26

CF Eden UK Select Opportunities Fund B Acc 124.35 - -0.12 0.46

CF Eden UK Select Opportunities Fund B Inc 123.78 - -0.12 0.46

CF Eden UK Select Opportunities Fund C Acc 127.31 - -0.12 0.79

CF Heartwood Cautious B Acc 115.67 - 0.07 1.17

CF Heartwood Cautious Income B Inc 105.38 - 0.09 2.98

CF Heartwood Growth B Acc 120.75 - 0.02 0.54

CF Heartwood Balanced Income B Inc 101.70 - 0.07 3.58

CF Heartwood Balanced B Acc 109.54 - 0.09 1.18

CF Heartwood Defensive Multi Asset Fund B Accumulation 103.27 - 0.05 0.47

CF Heartwood Defensive Multi Asset Fund B Income 102.94 - 0.04 0.44

CF JM Finn Africa Fund Ret Acc 82.86 - -0.44 0.32

CF JM Finn Global Opps Inst Acc B 105.26 - -0.20 3.53

CF JM Finn Gbl Opps R Net Acc 237.50 - -0.46 2.48

CF JM Finn Global Opps Retail Income 103.01 - -0.20 3.49

CF JM Finn UK Pfolio R Net Inc 128.40 - -0.02 3.81

CF JM Finn UK Smaller Cos R Inc 116.46 - -0.03 0.09

CF JOHIM Portfolio Fd A 125.08 - -0.14 1.56

CF JOHIM Portfolio Fd B 124.59 - -0.15 1.07

CF JOHIM Portfolio Fd C 125.00 - -0.14 0.17

CF JOHIM Alternatives Fund Income class A 98.09 - 0.23 0.00

CF JOHIM Alternatives Fund Income class B 96.71 - 0.22 0.00

CF OLIM UK Equity Acc 215.79 218.03 -0.04 4.45

CF OLIM UK Equity Inc 140.44 141.89 -0.02 4.45

CF Richmond Core 146.25 - 0.16 0.00

CF SI Investment Mkts Inc 458.68 485.97 0.48 3.11

CF SI Investment Mkts Acc 739.04 783.02 0.78 3.11

CF UK Fund 115.20 - -0.03 0.70Investment Adviser - Cheviot Asset ManagementCF Cheviot Balanced A Acc 111.77 - 0.35 0.00

CF Cheviot Balanced A Inc 109.84 - 0.35 0.00Investment Adviser - DSM Capital PartnersThe Greenwich Fd $ 16.80 - 0.29 0.00

The Westchester $ 18.34 - 0.15 0.00Investment Adviser - FundQuest UK LimitedCF FundQuest Select Fund Ord Acc 179.59 - 0.62 0.00

CF FundQuest Select Fund Inst Acc 188.36 - 0.65 0.24

CF FundQuest Select Cautious Fund Ord Acc 147.47 - 0.34 0.26

CF FundQuest Select Cautious Fund Inst Acc 153.67 - 0.36 0.66

CF FundQuest Select Cautious Fund Inst Inc 130.40 - 0.31 0.60

CF FundQuest Select Cautious Fund Ord Inc 126.15 - 0.29 0.24

CF FundQuest Select Fund Z Accumulation GBP 103.42 - 0.36 -

CF FundQuest Select Cautious Fund Z Income GBP 101.64 - 0.24 -

CF FundQuest Select Cautious Fund Z Accumulation GBP 101.68 - 0.23 -Investment Adviser Lacomp PlcCF Lacomp World 114.49 120.36 0.18 0.00Investment Adviser - Morant Wright Management LimitedCF Morant Wright Japan A 187.89 - -0.62 0.49

CF Morant Wright Japan A Inc 185.84 - -0.61 0.45

CF Morant Wright Japan B 197.04 - -0.65 0.98

CF Morant Wright Japan B Inc 189.25 - -0.62 0.97

CF Morant Wright Nippon Yield ACC A 194.12 - -1.77 2.87

CF Morant Wright Nippon Yield ACC B 198.46 - -1.81 2.86

CF Morant Wright Nippon Yield Fund A Inc 182.73 - -1.66 2.95

CF Morant Wright Nippon Yield Fund B Inc 186.81 - -1.69 2.95Weekly Valuing Funds

Capital International funds services (LUX)6, route de Trèves, L-2633 Senningerberg,LuxembourgCapital International is part ofThe Capital Group Companieswww.capitalinternational.comFSA RecognisedGrowth FundsCap Int All Ctry Eq B SFr 17.05 - -0.09 0.00

Fund Bid Offer D+/- Yield

Cap Int All Ctry Eq B € 13.99 - -0.16 0.00

Cap Int All Ctry Eq B $ 18.67 - 0.00 0.00

Cap Int All Ctry Eq BD £ 11.54 - -0.02 0.01

Cap Int Emerg Asia Eq B SFr 8.65 - -0.06 0.00

Cap Int Emerg Asia Eq B € 7.15 - -0.06 0.00

Cap Int Emerg Asia Eq B $ 9.44 - 0.04 0.00

Cap Int Emerg Asia Eq Bd £ 5.86 - -0.01 0.00

Cap Int Global Equity B $ 17.75 - 0.03 0.00

Cap Int Global Equity BD £ 10.65 - 0.00 0.11

Cap Int Global Equity B SFr 16.21 - -0.06 0.00

Cap Int Global Equity B € 13.30 - -0.13 0.00

Cap Int European Eq BD £ 8.73 - 0.01 0.95

Cap Int European Eq B € 11.60 - -0.10 0.00

Cap Int European Eq B SFr 14.14 - -0.03 0.00

Cap Int European Eq B $ 15.48 - 0.04 0.00

Cap Int Japan Equity B € 6.86 - -0.10 0.00

Cap Int Japan Equity B $ 9.15 - -0.03 0.00

Cap Int Japan Equity B SFr 8.36 - -0.07 0.00

Cap Int Japan Equity BD £ 5.65 - -0.02 0.00

Cap Int AsiaP ex Jp Eq B SFr 15.94 - -0.18 0.00

Cap Int AsiaP ex Jp Eq B € 13.08 - -0.23 0.00

Cap Int AsiaP ex Jp Eq B $ 17.45 - -0.10 0.00

Cap Int Asia Pex Jp Eq BD £ 10.32 - -0.08 0.28

Cap Int Em Mkts Fund BD £ 55.19 - -0.08 0.80

Cap Int Em Mkts Fund B SFr 84.90 - -0.58 0.00

Cap Int Em Mkts Fund B € 70.10 - -0.59 0.00

Cap Int Em Mkts Fund B $ 92.62 - 0.42 0.00Growth and Income FundsCap Int Glb Growth Inc BD £ 9.45 - 0.00 0.61

Cap Int Glb Growth Inc B € 12.02 - -0.12 0.00

Cap Int Glb Growth Inc B SFr 14.65 - -0.05 0.00

Cap Int Glb Growth Inc B $ 16.04 - 0.02 0.00

Cap Int Eur Growth Inc B € 17.42 - -0.14 0.00

Cap Int Eur Growth Inc B SFr 21.23 - -0.04 0.00

Cap Int Eur Growth Inc B $ 23.24 - 0.08 0.00

Cap Int Eur Growth Inc BD £ 13.16 - 0.03 3.12

Cap Int US Growth Inc B € 13.71 - -0.12 0.00

Cap Int US Growth Inc B SFr 16.71 - -0.04 0.00

Cap Int US Growth Inc B $ 18.29 - 0.05 0.00

Cap Int US Growth Inc BD £ 11.24 - 0.02 0.34Objective Based FundsCap Int Em Mk Tot Opp B SFr 11.63 - -0.06 0.00

Cap Int Em Mk Tot Opp B € 9.60 - -0.07 0.00

Cap Int Em Mk Tot Opp B $ 12.68 - 0.07 0.00

Cap Int Em Mk Tot Opp Bd £ 7.53 - -0.01 1.99

Cap Int Gbl Abs Inc Grow B $ 11.27 - 0.08 0.00Income FundsCap Int Em Mkts Debt B SFr 13.69 - -0.11 0.00

Cap Int Em Mkts Debt B € 11.30 - -0.12 0.00

Cap Int Em Mkts Debt B $ 14.93 - 0.04 0.00

Cap Int Em Mkts Debt Bd £ 8.53 - -0.02 3.48

Cap Int Em Mk LocCur Dbt B $ 11.94 - 0.05 0.00

Cap Int Em Mk US$ Debt B $ 11.57 - 0.01 0.00

Cap Int Euro Bond B SFr 17.04 - 0.08 0.00

Cap Int Euro Bond B £ 9.23 - 0.08 1.60

Cap Int Euro Bond B $ 18.66 - 0.19 0.00

Cap Int Euro Bond BD € 13.99 - -0.01 0.00

Cap Int Glb H Inc Opp B SFr 31.53 - -0.16 0.00

Cap Int Glb H Inc Opp B € 25.88 - -0.29 0.00

Cap Int Glb H Inc Opp B $ 34.52 - 0.00 0.00

Cap Int Glb H Inc Opp BD £ 13.35 - -0.02 5.03

Cap Int Global Bond B SFr 18.24 - -0.10 0.00

Cap Int Global Bond B € 14.97 - -0.17 0.00

Cap Int Global Bond B $ 19.97 - 0.00 0.00

Cap Int Global Bond BD £ 10.25 - -0.01 1.21

Carmignac Gestion (FRA)www.carmignac.comFSA RecognisedCarmignac Emergents A EUR acc € 770.45 - -5.82 0.00

Carmignac Emergents D GBP inc £ 110.48 - -0.84 -

Carmignac Emergents I GBP acc £ 97.51 - -0.74 0.00

Carmignac Investis A EUR acc € 905.22 - -2.81 0.00

Carmignac Investis D GBP inc £ 106.39 - -0.34 -

Carmignac Investis I GBP acc £ 93.45 - -0.29 0.00

Carmignac Patrimoine A EUR acc € 560.02 - -0.84 0.00

Carmignac Patrimoine D GBP inc £ 101.29 - -0.14 -

Carmignac Patrimoine I GBP acc £ 98.50 - -0.15 0.00

Carmignac Gestion (FRA)www.carmignac.comRegulatedCarmignac CourtTerme A EUR acc € 3753.19 - 0.02 0.00

Carmignac Eur-Entr A EUR acc € 208.26 - -0.16 0.00

Carmignac Euro-Patr A EUR acc € 306.51 - -0.04 0.00

Carmignac Euro-Patr D GBP inc £ 103.36 - 0.00 -

Carmignac Euro-Patri I GBP acc £ 103.52 - 0.00 -

Carmignac Invest Lat A EUR acc € 231.68 - 0.41 0.00

Carmignac Pr Réac50 A EUR acc € 168.14 - -0.06 0.00

Carmignac Pr Réac75 A EUR acc € 199.04 - 0.22 0.00

Carmignac Pr Réac100 A EUR acc € 177.15 - 0.15 0.00

Carmignac Sécurité A EUR acc € 1633.64 - 1.14 0.00

Carmignac Sécurité D GBP inc £ 103.40 - 0.07 -

Carmignac Sécurité I GBP acc £ 103.52 - 0.07 -

Carmignac Portfolio (LUX)www.carmignac.comFSA RecognisedCarmignac Capital + A EUR acc € 11113.62 - 7.74 0.00

Carmignac Capital + I GBP acc £ 5253.24 - 3.93 0.00

Carmignac Commodit. A EUR acc € 297.41 - 0.65 0.00

Carmignac Commodit. I GBP acc £ 68.50 - 0.15 0.00

Carmignac Em. Discov A EUR acc € 1124.70 - -9.71 0.00

Carmignac Em. Discov I GBP acc £ 91.04 - -0.79 0.00

Fund Bid Offer D+/- Yield

Carmignac Global Bd A EUR acc € 1145.48 - -7.65 0.00

Carmignac Global Bd I GBP acc £ 109.30 - -0.72 0.00

Carmignac Gde Europe A EUR acc € 149.40 - -0.45 0.00

Carmignac Gde Europe D GBP inc £ 106.53 - -0.32 -

Carmignac Gde Europe I GBP acc £ 96.58 - -0.29 0.00

Carmignac Mkt Neutr. A EUR acc € 1038.36 - 0.91 0.00

Carmignac Mkt Neutr. I GBP acc £ 95.57 - 0.09 0.00

Carmignac Global Bd D GBP inc £ 95.41 - -0.63 -

Carmignac Em. Patrim A EUR acc € 113.74 - -0.68 0.00

Carmignac Em. Patrim I GBP acc £ 104.54 - -0.62 0.00

Carmignac Em. Patrim D GBP inc £ 101.41 - -0.60 -Some Funds have distribution units and/or units denominated in other currencies

The full list can be found at www.carmignac.com

CATCo Reinsurance Opportunities Fund Ltd. (UK)9 Par-La-Ville Road, S E Pearman Building, 2nd Floor, Hamilton, BermudaAuthorised FundsCATCo Re Opps Fund Ords $ 0.9566 - -0.0102 0.00

CATCo Reinsurance Fund Ltd. (BMU)RegulatedCATCo Re Fund Ltd Series A $ 1196.4549 - -15.8536 -

CATCo Re Fund Ltd Series B $ 1208.2360 - -16.9075 -

Cavendish Asset Management Limited (1200)F (UK)Chelsea House, Westgate, London W5 1DRIFA Enquiries 020 8810 8041 Admin/Dealing 0870 870 7502Authorised Inv FundsOpportunities Instl Income 796.80 - 5.70 1.87

Opportunities Retail Income 793.30 - 5.70 1.13

Worldwide Instl Income 258.70 - -0.50 1.43

Worldwide Retail Income 258.40 - -0.50 0.63

AIM Instl Income 113.60 - 0.40 0.77

AIM Retail Income 111.50 - 0.40 0.00

Asia Pacific Instl Inc 159.40 - -0.80 1.34

Asia Pacific Retail Inc 159.20 - -0.80 0.56

European Instl Income 120.50 - 0.50 1.51

European Retail Income 119.40 - 0.40 0.77

Japan Instl Income 117.30 - -0.20 1.29

Japan Retail Income 116.80 - -0.20 0.48

North American Instl Income 140.40 - 0.50 0.55

North American Retail Income 137.30 - 0.50 0.00

Technology Instl Income 191.90 - 0.60 0.00

Technology Retail Income 186.00 - 0.50 0.00

UK Balanced Income Instl Inc 121.10 - 0.30 4.89

UK Balanced Income Retail Inc 118.40 - 0.30 5.00

UK Select Instl Inc 132.00 - 0.50 2.32

UK Select Retail Inc 131.80 - 0.50 1.58

Cazenove Inv Fd Mgmt Ltd (CIFM) (UK)12 Moorgate, London, EC2R 6DA 020 3479 0000Property & Other UK Unit TrustsEquity Inc Tst For Charities 80.06 80.36 0.13 4.81

Growth Tst For Charities 133.36 133.80 0.57 4.03

Income Tst For Charities 63.25 63.62 -0.10 5.49

Multi-Strategy Tst for Charities £ 62.11 - -1.00 3.69

Cedar Rock Capital Limited (IRL)RegulatedCedar Rock Capital Fd Plc $ 279.09 - -2.75 0.00

Cedar Rock Capital Fd Plc £ 269.53 - -4.94 0.00

Cedar Rock Capital Fd Plc € 220.35 - -3.47 0.00

Charitrak Common Investment Fund (UK)Murray Hse, 1 Royal Mint Ct, London, EC3N 4HH 020 7668 8662Property & Other UK Unit TrustsCharitrak Common Investment Inc 1096.00 1098.00 4.00 3.71

Charitrak Common Investment Acc 1620.00 1623.00 7.00 3.64

The Charlemagne Fund (CYM)RegulatedNAV EUR € 251.20 - 7.56 -

NAV USD $ 249.45 - 7.60 -

Charlemagne Capital (IOM) LtdOther International FundsOCCO Eastern European $ 354.65 - 2.00 0.00

Charlemagne New Frontiers R $ 13.64 - 0.21 0.00Magna Umbrella Fund PLCMagna Africa R € 9.74 - -0.26 0.00

Magna Eastern European R € 8.84 - -0.12 0.00

Magna Emerging Mkts Div Fd R Acc € 12.03 - -0.13 0.00

Magna Emerging Mkts Div Fd R Dist € 10.96 - -0.12 4.52

Magna Global Emerging Markets R € 8.75 - -0.08 0.00

Magna Latin American R € 10.65 - -0.11 0.00

Magna Mena R * € 11.63 - -0.15 0.00

Magna New Frontiers R € 8.68 - -0.11 0.00

Magna Turkey R € 12.17 - -0.14 0.00

Magna Undervalued Ass Fd R € 10.07 - -0.02 0.00

Charles Schwab Worldwide Funds Plc (IRL)RegulatedSchwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01

Chartered Asset Management PTE LtdOther International FundsCAM-GTF Limited $ 401344.95 401344.95 -993.78 0.00

CAM GTi Limited $ 1135.31 - -19.09 0.00

Raffles-Asia Investment Company $ 2.57 2.57 0.08 2.62

Cheyne Capital Management (UK) LLP (IRL)Cheyneinvestor.Relations@cheynecapital.comRegulatedCheyne Convertibles Absolute Return Fund € 1184.78 - 0.65 0.00

Fund Bid Offer D+/- Yield

Cheyne Convertibles Absolute Return Fund $ 1183.93 - 0.72 0.00

Cheyne Convertibles Absolute Return Fund £ 1160.36 - 0.71 0.00

Cheyne Capital Management (UK) LLPOther International FundsCheyne European Event Driven Fund € 122.53 - 0.11 0.00

Cheyne High Income Credit Fund EUR Inst € 139.73 - 5.50 0.00

Cheyne Real Estate Debt Fund Class A1 £ 107.73 - 1.35 -

Cheyne Long/Short Credit Fund $ 192.98 - 3.44 -

Cheyne Malacca Asia Equity Fund Class A $ 1400.39 - - -

City Financial Investment Company Limited (UK)2 The Boulevard, City West One Office Park, Gelderd Road, Leeds LS12 6NTEnquiries: 0845 300 2107Authorised Inv FundsStrategic Gilt A Acc 144.74 - -0.02 0.89

Strategic Gilt A Inc 134.05 - -0.01 1.10

Strategic Gilt B Acc 148.61 - -0.01 0.11

Strategic Gilt B Inc 134.84 - -0.02 0.11

Strategic Gilt C Accumulation 147.53 - -0.02 1.40

Strategic Global Bond A Acc 157.34 - -0.10 0.95

Strategic Global Bond A Inc 76.90 - -0.05 1.02

Strategic Global Bond B Acc 159.61 - -0.11 0.00

Strategic Global Bond B Inc 77.01 - -0.05 0.00

UK Equity Income A Inc 126.85 - -0.30 2.74

UK Equity Income A Acc 136.36 - -0.34 2.77

UK Equity Income C Accumulation 139.21 - -0.33 3.25

MultiManager Income A Inc 156.15 164.98 0.17 1.60

MultiManager Income A Acc 257.86 272.45 0.28 1.60

MultiManager Growth A Inc 357.80 378.03 0.26 0.00

MultiManager Growth A Acc 382.82 404.46 0.28 0.00

Diversified A Acc 108.09 - 0.20 0.11

Diversified A Inc 105.90 - 0.19 0.14

Dynamic A Acc 120.20 - 0.21 0.03

Dynamic A Inc 117.57 - 0.19 0.03

City Financial Asian Absolute Growth Fund(CYM)RegulatedAsian Absolute Growth Class A $ 100.96 - -0.01 0.00

Asian Absolute Growth Class C $ 105.03 - 0.05 0.00

City of London Inv Mgmt Co Ltd (IRL)2nd Floor, Guild House, Guild Street, Dublin 1 00 353 1 448 5033FSA RecognisedThe Em.Mkt Value & Growth GBP-Inst £ 12.01 - -0.04 0.00

The Em.Mkt Value & Growth GBP-Ret £ 11.80 - -0.04 0.00

The Emerging World USD - Retail A $ 67.77 - 0.43 0.00

The Emerging World USD - Instl $ 71.88 - 0.46 0.00

The Global Equity Fund $ 12.58 - 0.10 0.00

The Natural Resources USD Retail A F $ 6.33 - 0.05 0.00

The Natural Resources USD - Instl $ 6.49 - 0.04 0.00

Clareville Capital Partners LLPOther International FundsPegasus Fund Ltd A-1 GBP £ 41.56 - -0.18 0.00

Pegasus Fund Ltd A-2 GBP £ 105.40 - -0.44 0.00

Pegasus Fund Ltd A-1 EUR € 17.84 - -0.07 0.00

Pegasus Fund Ltd A-1 USD $ 19.09 - -0.08 0.00

Pegasus Fund Ltd A-2 USD $ 103.78 - -0.45 0.00

Pegasus Fund Ltd B-1 GBP £ 137.79 - -0.61 0.00

Pegasus Fund Ltd B-2 GBP £ 105.53 - -0.46 0.00

Pegasus Fund Ltd B-1 EUR € 115.70 - -0.51 0.00

Pegasus Fund Ltd B-1 USD $ 123.53 - -0.57 0.00

CMI Asset Mgmt (Luxembourg) SA (LUX)23 route d'Arlon, L-8010 Strassen Lux 00 352 3178311FSA RecognisedCMI Global Network Fund (u)Regional Equity Sub FundsCMI Continental Euro Equity € 22.95 - -0.06 1.50

CMI Pacific Basin Enhanced Equity $ 45.11 - -0.22 1.77Single Country Equity Sub FundsCMI German Equity F € 48.23 - -0.11 1.83

CMI Japan Enhanced Equity F ¥ 2590.61 - 28.16 1.40

CMI UK Equity £ 10.92 - 0.02 2.43

CMI US Enhanced Equity F $ 55.03 - 0.42 0.78Index Tracking Sub FundsEuro Equity Index Tracking € 15.48 - 0.02 3.07

Japan Index Tracking ¥ 485.40 - 5.59 1.55

UK Eqty Index Tracking £ 13.90 - 0.02 3.55

US Eqty Index Tracking $ 41.25 - 0.31 0.95Managed Sub FundsGlobal Bond £ 1.56 - 0.00 1.16

Global Network Mgd Global Mxd £ 2.02 - 0.00 0.57

Global Equity £ 2.10 - 0.00 0.41Bond Sub FundsCMI Euro Bond F € 42.88 - -0.03 3.07

CMI Japanese Bond ¥ 1691.44 - 0.74 0.43

CMI UK Bond £ 7.88 - -0.01 2.42

CMI US Bond $ 13.48 - 0.00 2.00Currency Reserve Sub FundsCMI Euro Currency Reserve € 25.42 - 0.00 0.73

CMI Stlg Currency Reserve £ 4.99 - 0.00 1.09

CMI US Dllr Currency Reserve $ 9.96 - 0.00 0.10

CMI Access 80% Gu F € 5.68 - 0.00 0.00

CMI Fund Managers (IoM) (IOM)Clerical Medical Hse, Victoria Road, Douglas, IoM IM99 1LT 01624 625599FSA RecognisedCMI High Income PLC £ 0.5219 0.5548 0.0004 2.80

CMI Sterling Roll Up PLC £ 3.1861 3.3852 0.0028 0.00Maximum Permitted Charge 8.5%

Cohen & Steers SICAV (LUX)RegulatedEuropean Real Estate Securities € 14.54 - -0.16 0.50

Europ.RealEstate Sec. IX € 18.07 - -0.20 0.00

Gbl RealEstate Sec. I $ 9.63 - 0.03 3.35

Gbl RealEstate Sec. IX $ 10.92 - 0.04 0.00

FTfm

16 FINANCIAL TIMES MONDAY JANUARY 14 2013

FTfm

FINANCIAL TIMES MONDAY JANUARY 14 2013 17

Fund Bid Offer D+/- Yield

Sterling Core Plus Bond Gr Accum 165.80 - -0.60 4.25

Sterling Core Plus Bond Inc 119.90 - -0.40 4.42

UK 264.80 - 0.80 2.42

UK Aggreg Bond Gr Accum 157.60 - -0.30 3.63

UK Aggregate Bond Inc 115.30 - -0.20 3.78

UK Corporate Bond 116.80 - 0.00 4.48

UK Corporate Bond - Gross 194.40 - -0.10 4.30

UK Corporate Bond Fund Gross Inc £ 10.58 - -0.01 -

UK Gilt Bond 119.40 - -0.20 2.56

UK Gilt Gross 180.00 - -0.40 2.53

UK Long Corp Bond 127.50 - -0.20 4.58

UK Long Corp Bond - Gross 204.60 - -0.30 4.38

UK Long Corporate Bond Fund - Gross Income £ 10.21 - -0.02 -

UK Specialist 135.80 - 0.70 1.96Retail Share ClassesEmerging Markets - retail 113.60 - -0.20 0.43

Europe Long Term Growth 131.40 - 0.80 2.26{*}CAR - Net income reinvested

Property & Other UK Unit TrustsMngd Pension Portfolio 666.30 666.30 1.00 1.21

FIL Fund Management (LUX)2a, rur Albert Borschette, BP 2175, L-1021, LuxembourgPhone: 800 22 089, 800 22 088RegulatedChina Consumer A-GBP £ 11.35 - -0.05 0.00

China Focus A-GBP £ 3.40 - -0.01 0.00

China Opportunities A-GBP £ 1.07 - 0.00 0.35

Global Financial Services A-GBP £ 0.34 - 0.00 0.41

Global Health Care A-GBP £ 0.32 - 0.00 0.00

Global Industrials A-GBP £ 0.63 - 0.00 0.00

Global Inflation-Linked Bd A-GBP-Hdg £ 1.25 - 0.00 1.00

Global Real Asset Securities £ 1.39 - 0.00 0.00

Global Technology A-GBP £ 0.16 - 0.00 0.00

Global Telecomms A-GBP £ 0.23 - 0.00 2.22

India Focus A-GBP £ 3.31 - -0.02 0.00

Latin America A-GBP £ 2.28 - 0.00 1.26

Findlay Park Funds Plc (IRL)Styne House, Upper Hatch Street, Dublin 2 Tel: 00 353 1603 6460FSA RecognisedAmerican Fund USD Class $ 57.36 - 0.25 0.00

American Fund GBP Hedged £ 31.19 - 0.28 0.00

Latin American Fund USD Class $ 21.42 - 0.07 0.00

First State Investments (UK) (1200)F (UK)23 St Andrew Square, Edinburgh, EH2 1BBenquiries@firststate.co.ukClient Services: 0800 587 4141 Dealing Line: 0800 587 3388Authorised FundsAsia Pacific A Shares 791.37 - -4.32 0.86

Asia Pacific Leaders A Shares 408.46 - -1.71 1.15

Asia Sustainability A Shares 274.94 - 0.33 1.00

Emerging Markets Bond A Accumulation £ 1.18 - 0.00 3.40

Emerging Markets Bond A Income £ 1.14 - 0.00 3.48

Global Agribusiness Fund A Accumulation 127.43 - -0.01 0.00

Global Emerging Mkts A Shares 592.45 - -0.32 0.50

Global Emerging Mkts Leaders A Shares 411.77 - -0.09 0.87

Global Emerging Mkts Sustainability A Acc 213.34 - -0.15 0.51

Global Listed Infrastructure Acc 130.85 - 0.07 3.52

Global Listed Infrastructure Inc 111.13 - 0.06 3.61

Global Opportunities A Shares 228.20 - 0.57 0.05

Global Property Securities A Accumulation 135.74 - -0.30 2.76

Global Property Securities A Income 113.33 - -0.25 2.82

Global Resources A Shares 312.16 - 0.39 0.19

Greater China Growth A Shares 436.03 - -3.03 0.97

Indian Subcontinent A Acc 214.89 - -1.85 0.00

Worldwide Equity Fund A Accumulation £ 1.05 - 0.00 0.46

Worldwide Equity Fund A Income £ 1.07 - 0.00 0.45

Fitzwilliam Asset Mgmt (Guernsey) Ltd (GSY)RegulatedTotal Return Fund PCC LtdFitzwilliam Opprtunity Dollar $ 113.86 - 0.65 0.00

Fitzwilliam Opprtunity Sterling £ 126.58 - 0.70 0.00

The TRF Commodity Plus Dollar Fund $ 118.27 - -2.76 0.00

The TRF Commodity Plus Sterling Fund £ 115.81 - -2.77 0.00

Foord Asset Mgt (Guernsey) Ltd (GSY)RegulatedFoord International Trust $ 30.91 - 0.45 0.00

FOURPOINTS Investment ManagersOther International FundsIT Funds-Info Tech UK Dist £ 544.76 - 0.67 0.00

Franklin Templeton Fund Mgt Limited (UK)PO Box 23676, Edinburgh EH7 5WS 0207 073 8690Freefone 0800 305 306 enquiries@franklintempleton.co.ukAuthorised Inv FundsFranklin Templeton Funds (OEIC)Class AFrk Mutual Shares A Acc £ 1.39 - 0.01 0.36

Frk Mutual Shares A Inc £ 1.34 - 0.01 0.36

Frk UK Blue Chip A Inc £ 3.62 - 0.01 2.35

Frk UK Equ Inc A Acc £ 1.17 - 0.00 3.23

Frk UK Equ Inc A Inc £ 1.85 - 0.00 4.57

Frk UK Mgrs' Focus A Acc £ 1.32 - 0.01 0.78

Frk UK Mid Cap A Inc £ 3.61 - 0.02 0.93

Frk UK Sel Grwth A Inc £ 2.78 - 0.01 2.00

Frk UK Smll Comp A Inc £ 5.36 - 0.05 0.35

Fund Bid Offer D+/- Yield

Frk US Opport A Acc £ 1.76 - 0.00 0.00

Tem Europe A Acc £ 1.75 - 0.01 1.88

Tem Europe A Inc £ 1.52 - 0.01 1.88

Tem Gbl Emg Mkts A Acc £ 2.35 - -0.02 0.88

Tem Glb TotRet Bond A Acc £ 1.74 - -0.01 4.14

Tem Glb TotRet Bond A H3 Acc £ 1.25 - 0.00 4.23

Tem Glb TotRet Bond A H3 Inc £ 1.24 - 0.00 4.19

Tem Glb TotRet Bond A Inc £ 1.44 - -0.01 4.36

Tem Growth A Acc £ 6.37 - 0.02 1.13

Tem Growth A Inc £ 4.38 - 0.02 1.12

Tem Strat Bond A Acc £ 1.35 - 0.00 5.68

Tem Strat Bond A Inc £ 1.08 - 0.00 5.82

Fiduciary International Ireland Limited (IRL)JPMorgan House - International Financial Services Centre,Dublin 1, IrelandOther International FundsFranklin Templeton Emerging Market Debt Opportunities Fund PlcFrk Templeton Emg Mkts Debt Opp CHFSFr 20.09 - 0.33 5.90

Frk Templeton Emg Mkts Debt Opp GBP £ 11.40 - 0.18 5.80

Frk Templeton Emg Mkts Debt Opp EUR € 13.49 - -0.37 6.13

Frk Templeton Emg Mkts Debt Opp USD $ 19.75 - 0.40 5.92

Franklin Templeton Investment Funds (LUX)26 Bld Royal L-2449 Luxembourg 00 352 466667 212www.franklintempleton.co.uk UK freephone 0 800 305 306FSA RecognisedClass A DisFrk Gbl R.Estate (USD) A Dis $ 9.11 - 0.03 0.76

Frk High Yield $ 7.21 - 0.01 5.88

Frk High Yield (Euro) € 6.57 - 0.01 5.83

Frk Income $ 12.02 - 0.07 3.98

Frk US Government $ 9.68 - -0.02 2.06

Frk US Liquid Reserve Inc $ 9.71 - 0.00 0.00

Frk US Total Return $ 11.31 - 0.00 1.59

Frk US Low Duration Fd $ 9.84 - 0.00 0.39

Tem Asian Bond $ 14.65 - 0.06 2.44

Tem Asian Growth $ 33.54 - -0.04 0.14

Tem Emerging Markets $ 36.68 - 0.07 0.37

Tem Emg Mkts Bd $ 20.81 - 0.04 5.28

Tem Emg Mkts Balanced AQdis $ 9.64 - 0.04 2.22

Tem Euro Gov. Bond € 10.20 - 0.02 1.53

Tem Euro Liquid Reserve € 4.40 - 0.00 0.70

Tem Europ Corp Bond Fd F € 10.69 - -0.03 2.73

Tem European Total Return € 9.28 - 0.01 2.95

Tem Global $ 27.50 - 0.34 0.85

Tem Global (Euro) € 12.85 - -0.03 0.71

Tem Global Aggr.Inv.Grd Bond Fd $ 10.58 - 0.04 -

Tem Global Aggregate Bond Fd F $ 10.31 - 0.04 1.47

Tem Global Balanced $ 20.70 - 0.21 1.48

Tem Global Bond $ 21.49 - 0.04 2.42

Tem Global Bond (Euro) € 10.74 - -0.01 2.33

Tem Global Equity Income $ 9.36 - 0.11 2.46

Tem Global High Yield Fd F $ 10.35 - 0.02 4.91

Tem Global Income $ 12.89 - 0.08 2.07

Tem Global Income Fd $ 10.89 - 0.03 -

Tem Global Smaller Cos $ 30.06 - 0.28 0.29

Tem Global Total Return $ 18.54 - 0.04 3.93

Tem Latin America $ 78.85 - 0.48 0.69Class A AccFrk Asia Flex Cap Fd $ 14.04 - 0.10 0.00

Frk Biotech Discovery $ 15.29 - 0.03 0.00

Frk Brazil Opportunities Fd $ 10.33 - 0.02 -

Frk Euroland Core Fund € 14.27 - 0.01 0.00

Frk European Growth € 11.73 - -0.05 0.00

Frk European Sml Mid Cap Gth € 23.53 - -0.07 0.00

Frk Global Conver.Securities $ 10.22 - 0.05 -

Frk Global Growth $ 12.27 - 0.08 0.00

Frk Global Sml Mid Cap Gth $ 24.99 - 0.25 0.00

Frk Gold and Precious Mtls Fd F $ 8.32 - 0.17 0.00

Frk India $ 24.26 - 0.13 0.00

Frk MENA Fund $ 4.73 - -0.01 0.00

Frk Mutual Beacon $ 53.57 - 0.39 0.00

Frk Mutual Euroland Fd € 12.94 - 0.07 0.00

Frk Mutual European EUR € 18.72 - 0.03 0.00

Frk Mutual Gbl Disc $ 14.71 - 0.16 0.00

Frk Natural Resources Fd F $ 9.26 - 0.09 0.00

Frk Real Return Fd F $ 10.79 - 0.02 0.00

Frk Strategic Income Fd $ 14.26 - 0.02 0.00

Frk Technology $ 7.59 - 0.04 0.00

Frk Tem Global Gth & Val $ 20.77 - 0.20 0.00

Frk Tem Japan ¥ 504.02 - 5.79 0.00

Frk Templeton Gbl Equity Strategies Fd $ 10.39 - 0.09 0.00

Frk Templeton Gbl Fundamental Strat Fd $ 11.64 - 0.10 0.00

Frk U.S. Focus Fund $ 11.00 - 0.07 0.00

Frk US Equity $ 17.39 - 0.13 0.00

Frk US Opportunities $ 8.16 - 0.04 0.00

Frk US Sml Mid Cap Gth F $ 13.73 - 0.03 0.00

Frk Wrld Perspective Fd $ 15.21 - 0.09 0.00

Tem Africa $ 11.67 - -0.03 -

Tem Asian Sml Comp Fd $ 34.43 - 0.13 0.00

Tem BRIC $ 16.05 - 0.04 0.00

Tem China $ 24.84 - 0.22 0.00

Tem Eastern Europe € 22.67 - -0.24 0.00

Tem Emerging Mkts Sml Comp Fd $ 8.56 - 0.00 0.00

Tem Euro S-Term Money Mkt Fd € 1012.92 - 0.00 0.00

Tem Euroland € 14.36 - 0.04 0.00

Tem European EUR € 15.93 - -0.01 0.00

Tem Frontier Mkts Fund $ 17.07 - 0.02 0.00

Tem Growth (Euro) € 11.39 - -0.03 0.00

Tem Korea $ 5.92 - 0.03 0.00

Tem Thailand $ 20.47 - -0.18 0.00

Frontier Investment Management LLP (0700)F (UK)Authorised Corporate Director: IFDS Managers Ltd, IFDS Hse, Basildon, SS15 5FSAuthorised Inv FundsIFDS Frontier MAP Balanced Fund 132.32 - 0.41 0.00

IFDS Frontier MAP Cautious Fund 102.62 - 0.06 0.28

Fund Bid Offer D+/- Yield

Frontier Capital (Bermuda) LimitedOther InternationalCommercial Property-GBP Class (Susp) £ 98.43 - 0.00 0.00

Global Real Estate-GBP C Class (Susp) £ 96.28 - 0.00 -

Fundsmith LLP (1200)F (UK)PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815www.fundsmith.co.uk, enquiries@fundsmith.co.ukAuthorised Inv FundsFundsmith Equity T Acc 134.54 - 0.29 1.32

Fundsmith Equity T Inc 131.09 - 0.28 1.30

GAM Limited (2300)F (UK)12 St James's Place London SW1A 1NX. 0800 919 927Internet: gam.comAuthorised Inv FundsGAM Funds OEICGAM Composite Abs Rtn OEIC Acc £ 103.68 - 1.31 0.00

GAM Global Diversified Acc 2979.29 - 10.75 0.79

GAM North American Gwth Acc 2365.14 - -15.75 0.00

GAM UK Diversified Acc 1442.62 - -0.81 1.14

GAM Limited (UK)Property & Other UK Unit TrustsGAM Exempt - UK Opp £ 4.78 - 0.12 0.00

GAM Limited (IRL)FSA RecognisedGAM Fund Management LtdGeorges Court, 54-62 Townsend Street, Dublin 2 + 353 1 6093927GAM Star Fund PlcGAM Star Asia-Pacific Eqty USD Acc F $ 10.78 - 0.05 0.00

GAM Star Asian Eqty USD Ord Acc F $ 13.86 - 0.04 0.00

GAM Star Cap.Appr.US Eqty USD Inc F $ 12.29 - 0.04 0.00

GAM Star Cat Bond USD Acc $ 10.88 - 0.02 0.00

GAM Star China Equity USD Acc F $ 19.46 - 0.09 0.75

GAM Star Cont European Eqty GBP Acc F £ 2.72 - 0.01 0.36

GAM Star Cred Opportunities GBP Acc £ 10.97 - 0.10 5.97

GAM Star Discretionary FX USD Acc F $ 10.60 - 0.10 0.00

GAM Star Dynamic Gbl Bd USD Acc H $ 11.26 - 0.04 0.00

GAM Star Emerging Asia USD Class ACCU $ 13.42 - -0.10 0.00

GAM Star Emerg. Market Rates USD Acc F $ 11.42 - 0.01 0.00

GAM Star Emerg Market Tot.Ret.USD Acc F $ 13.05 - 0.02 0.00

GAM Star European Eqty USD Acc F $ 19.14 - 0.20 0.00

GAM Star Flexible Gbl Port EUR Ac € 11.01 - 0.14 0.00

GAM Star GAMCO US Equity Acc F $ 10.72 - 0.08 0.00

GAM Star GEO USD Acc F $ 8.23 - 0.05 0.00

GAM Star Global Conv Bond USD Acc F $ 10.53 - 0.03 0.00

GAM Star Global Eq Inflation Fcs USD II Acc F $ 143.66 - 0.43 0.00

GAM Star Global Rates USD Acc F $ 11.73 - 0.01 0.00

GAM Star Global Selector USD Acc F $ 13.51 - 0.09 0.00

GAM Star Japan Eqty USD Acc F $ 10.18 - 0.01 0.00

GAM Star Keynes Quant Strat USD Acc F $ 11.08 - 0.10 0.00

GAM Star North of South EM Equity Acc F $ 11.93 - 0.09 0.00

GAM Star Technology USD Acc F $ 11.66 - 0.11 0.00

GAM Star US All Cap Eqty USD Acc F $ 10.20 - 0.04 0.00

GAM Star Worldwide Eqty USD Acc F $ 2832.41 - 30.56 0.00

GAM LimitedOther International FundsGAM Absolute Return Bond USD $ 114.02 - 0.01 0.00

GAM Composite Abs Rtn GBP Listed £ 151.97 - 1.93 0.00

GAM Composite Abs Rtn GBP Open £ 225.92 - 2.88 0.00

GAM Diversity Inc USD Open $ 689.60 - 6.11 0.00

GAM Euro Special Bd EUR Open € 152.72 - 1.77 0.00

GAM Multi-Emg Mkts USD Open $ 653.60 - 8.64 0.00

GAM Sterling Special Bond Inc £ 282.27 - -13.75 2.83

GAM Trading II GBP 1.25 XL £ 107.87 - 1.03 0.00

GAM Trading II Inc USD Op $ 332.65 - 2.52 0.00

GAMut Investments Inc. T Class $ 123.27 - 0.03 0.00

GLC LtdOther International FundsGLC Diversified USD (Final) $ 61.51 - -0.17 0.00

GYS Investment Management Ltd (GSY)RegulatedTaurus Emerging Fund Ltd $ 200.88 204.98 6.04 0.00

Generali International LimitedPO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108International InsurancesGlobal Multi-Strategy Managed $ 4.12 4.44 0.04 0.00

UK Multi-Strategy Managed £ 4.06 4.38 0.04 0.00

EU Multi-Strategy Managed € 2.38 2.57 0.01 0.00

Global Bond USD $ 3.59 3.87 -0.01 0.00

Genesis Asset Managers LLPOther International FundsEmerging Mkts NAV £ 5.82 - 0.19 0.00

Griffin Umbrella Fund (IRL)RegulatedEuropean Opportunities Fund A € 130.52 - -0.27 0.00

European Opportunities Fund B € 98.39 - -0.21 0.00

Renaissance Eastern European Allocation Fund € 403.80 - -1.29 0.00

Renaissance Eastern European Fund A € 529.65 - -4.23 0.00

Renaissance Eastern European Fund B € 112.87 - -1.05 0.00

Renaissance Ottoman Fund € 142.89 - -0.38 0.00

Guardian (UK)Ballam Road, Lytham St Annes, Lancashire, FY8 4JZ 01253 733 151InsurancesGuardian AssuranceProperty Bond £ 20.59 21.44 0.00 -

Choices Wth-Pfts Lg-tm 307.10 323.30 0.00 -

Choices Wth-Pfts St-tm 262.00 275.80 0.00 -

Fund Bid Offer D+/- Yield

Choices Managed 524.61 552.22 1.86 -

Choices Equity 581.70 612.31 3.22 -

Freedom With Pfts Long-Tm 212.20 223.30 0.00 -

Freedom With Pfts Short-Tm 192.10 202.20 0.00 -

Freedom Managed 309.33 325.62 0.97 -

Freedom Equity 345.79 363.99 1.59 -

Corp Pens Mananged 185.20 185.20 0.66 -

Corp Pens Equity 189.89 189.89 1.05 -

Corp Pens Fixed Interest 268.12 268.12 -0.30 -

Corp Pens Index Linked 296.76 296.76 2.71 -

Corp Pens Deposit 188.47 188.47 0.01 -

Corp Pens Protector 299.55 299.55 0.69 -

Corp Pens UK Index Tracker £ 1.65 1.65 0.01 -Guardian Linked Life Assurance LtdManaged Acc £ 15.34 16.15 0.06 -

Equity Acc £ 28.01 29.49 0.15 -

Fixed Interest Acc £ 15.58 16.40 -0.02 -

International Acc £ 10.41 10.96 0.04 -

Nth American Acc £ 4.75 5.00 0.01 -

Pacific Acc £ 2.52 2.65 0.00 -

European Acc £ 2.75 2.89 0.02 -

Property Acc £ 5.85 6.16 -0.01 -

Index-Linked Acc £ 5.68 5.98 0.05 -

Deposit Accum £ 4.50 4.73 0.00 -Guardian Pensions Management LtdPens. Managed Acc. £ 19.82 20.86 0.07 -

Pens. Equity Acc. £ 29.30 30.84 0.16 -

HPB Assurance LtdPO Box 179, IOMA House,, Hope Steet, Douglas,, Isle of Man, IM99 1PU 01624 681343International InsurancesHoliday Property Bond Ser 1 £ 0.57 - 0.00 0.00

Holiday Property Bond Ser 2 £ 0.63 - 0.00 0.00

HSBC Fd Administration (Jersey) Ltd (JER)HSBC House, St. Helier, Jersey JE1 1HS 01534 606520FSA RecognisedIntl Sterling Income £ 1.0008xd 1.0315 -0.0022 3.88

Hamilton Lane Private Equity Fund PLC (IRL)RegulatedNAV $ 108.05 - -1.98 -

Hamon Investment GroupOther International FundsAsian iTech $ 5.01 - -0.48 0.00

Asian Market Leaders - USD $ 27.86 - -0.20 0.00

Asian Market Leaders - GBP £ 13.48 - -0.20 0.00

Greater China - USD $ 10.46 - -0.09 0.00

Greater China - GBP £ 4.09 - -0.06 0.00

Oriental Long Short $ 106.36 - 5.84 0.00

Selected Asian P'folio $ 54.01 54.02 0.08 0.00

Hargreaves Lansdown Fd Mgrs (1100)F (UK)PO Box 55736, 50 Bank Street, Canary Wharf London E14 1BTEnquiries 0117 90090000Authorised Inv FundsHargreaves Lansdown FundsUnit TrustMulti-Manager Spec Sits Tst 200.98 211.34 0.73 0.43

HL Multi-Manager Income & Growth Trust (Accumulation units) 118.68 124.92 0.46 4.58

HL Multi-Manager Income & Growth Trust (Income units) 79.70 83.89 0.30 4.71

Multi-Manager Bal Mgd Tst 147.43 155.18 0.50 1.16

HL Multi-Manager Equity & Bond Trust (Income units) 93.70 98.54 0.26 3.70

HL Multi-Manager Equity & Bond Trust (Accumulation units) 118.42 124.53 0.33 3.62

Multi-Manager Strategic Bond Trust A Acc 154.00 158.76 0.23 3.38

Multi-Manager Strategic Bond Trust A Inc 135.47 139.65 0.21 3.45

Haussmann Hldgs NV CuracaoOther International FundsHaussman $ 2203.85 - 35.07 -

Haussmann Holdings NV Cls C € 1938.14 - 30.30 0.00

Heartwood Wealth Management Limited (IRL)RegulatedHeartwood Caut Multi Asset B Acc 127.30 - 0.52 0.00

Henderson Global Investors (UK)PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832www.henderson.comAuthorised Inv FundsAsian Dividend Income Inc 96.42 101.75 -0.45 5.81

Asia Pacific Capital Growth A Acc 693.10 - -4.40 0.15

European Growth A Acc 123.60 - 0.40 1.51

European Special Situations A Acc 68.45 - 0.23 1.55

Fixed Interest Monthly Income A Inc 21.98 23.05 0.02 5.75

Global Care Growth A Inc 140.50 - -0.30 0.14

Global Equity Income A Inc 41.11 - 0.15 4.05

Global Strategic Capital Acc 156.99 165.68 0.54 0.00

Global Technology A Acc 651.60 - 1.40 0.00

Henderson Global Growth Fund 1328.75 1389.89 0.00 0.00

Multi-Manager Active A Acc 140.70 - 0.30 0.00

Multi-Manager Distribution A Inc 119.90 - 0.40 2.84

Multi-manager Diversified A Acc 70.72 - -0.07 1.95

Multi-Manager Income & Growth A Acc 131.60 - 0.60 1.99

Multi-Manager Income & Growth A Inc 127.60 - 0.50 2.02

Multi-Manager Managed A Acc 188.10 - 0.30 0.05

Multi-Manager Managed A Inc 186.10 - 0.30 0.00

Sterling Bond Inc 60.18 62.87 0.05 3.32

Sterling Bond Acc 180.33 188.42 0.16 3.26

Strategic Bond A Inc 128.10 - 0.10 5.91

UK Alpha A Acc 86.45 - -0.08 0.47

UK Equity Income A Inc 499.70 - 2.30 3.62

UK Property A Acc 170.31 179.27 0.03 4.73

UK Property A Inc 91.51 96.32 0.02 4.89

Cautious Managed A Acc 205.12 - 0.38 4.34

Cautious Managed A Inc 139.35 - 0.26 4.45

China Opportunities A Acc 644.44 - -5.66 0.88

Emerging Markets Opportunities A Acc 153.83 - -0.79 0.72

European Selected Opportunities A Acc 948.45 - 6.80 1.20

Multi-Manager Absolute Return A Acc 129.66 - 0.34 0.00

UK & Irish Smaller Companies A Acc 411.80 - 2.90 0.12

UK Absolute Return A Acc 117.64 - 0.22 0.00

UK Index A Acc 421.06 - 0.44 2.62

UK Tracker A Acc 198.01 - 0.11 2.17

US Growth A Acc 516.11 - 1.39 0.00

Fund Bid Offer D+/- Yield

Hermes Investment Funds Plc (IRL)Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ 020 7680 3720FSA RecognisedGlobal Emerging Markets Fund £ 1.97 1.97 -0.01 0.00

Global Equites Selection Fund F £ 1.40 1.40 0.01 0.00

Japan Equity Fund F £ 1.10 1.10 0.00 0.00

Pan European Small Cap Companies Fund £ 1.81 1.81 0.00 0.00

Quant Global Equity Fund £ 1.78 1.78 0.01 0.00

Sourcecap European Alpha Fund F £ 1.35 1.35 0.01 0.00

Sourcecap Europe Ex-UK Cls Z GBP Acc £ 1.29 1.29 0.01 0.00

UK Smaller Companies Fund £ 1.91 1.91 0.00 0.00

UK Small and Mid Cap Companies Fund £ 2.90 2.90 0.01 0.00

Global Investment Grade Z GBP Acc £ 1.18 1.18 0.01 0.00

Global High Yield Bond Fund Cls Z GBP Acc £ 1.28 1.28 0.01 0.00

Hermes Property Unit Trust (UK)Property & Other UK Unit TrustsProperty £ 4.39 4.67 0.00 4.44

Impax Asset Management (IRL)Norfolk House, 31 St James's Square, London, SW1Y 4JRFSA RecognisedEnv Mkts (Ire) Stl A £ 1.74 - 0.00 0.00

Env Mkts (Ire) Stl B £ 1.67 - 0.00 0.00

Env Mkts (Ire) Euro A € 1.45 - -0.02 0.00

Env Mkts (Ire) Euro B € 1.14 - -0.01 0.00

Env Mkts (Ire) USD A $ 1.47 - 0.01 0.00

Env Mkts (Ire) USD B $ 1.30 - 0.00 0.00

INDIA VALUE INVESTMENTS LIMITED (INVIL)www.invil.muOther International FundsNAV £ 4.44 - 0.02 0.00

Intrinsic Value Investors (IVI) LLP (IRL)1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210FSA RecognisedIVI European Fund EUR € 13.36 - 0.02 0.00

IVI European Fund GBP £ 15.08 - 0.13 0.00

Invesco Fund Managers Ltd (UK)30 Finsbury Square, London, EC2A 1AGDealing: 0800 085 8571Investor Services: 0800 085 8677Broker Services: 0800 028 2121Administration Services: 0800 085 8677www.invescoperpetual.co.ukAuthorised Inv FundsINVESCO PERPETUAL FundsAsian Acc F 397.34 - -1.95 0.85

Asian Inc F 362.22 - -1.78 0.85

Asian Equity Income Acc F 56.56 - -0.28 3.88

Asian Equity Income Inc F 52.70 - -0.20 4.00

Balanced Risk 6 Acc 51.20 - -0.07 -

Balanced Risk 8 Acc 51.91 - -0.09 -

Balanced Risk 10 Acc 52.60 - -0.09 -

Childrens Acc F 293.18 - 0.90 2.12

Corporate Bd Acc (Gross) F 185.34 - 0.27 4.67

Corporate Bd Inc (Gross) F 88.39 - 0.13 4.86

Corporate Bond Acc F 168.60 - 0.24 4.70

Corporate Bond Inc F 88.20 - 0.12 4.85

Distribution Acc F 94.51 - 0.20 5.74

Distribution Acc (Gross) F 105.39 - 0.23 5.70

Distribution Inc F 61.15 - 0.13 5.90

Distribution Inc (Gross) F 61.16 - 0.13 5.90

Emerging Countries Acc F 231.00 - -1.37 0.90

Emerging Countries Inc F 212.86 - -1.27 0.91

Emerging European Acc F 44.73 - -0.14 0.60

Emerging European Inc F 43.78 - -0.13 0.60

European Equity Acc F 590.14 - 4.51 2.21

European Equity Inc F 516.40 - 3.95 2.25

European Equity Income Acc F 52.11 - 0.34 4.01

European Equity Income Inc F 43.36 - 0.29 4.13

European High Income Acc F 67.93 - 0.34 4.56

European High Income Inc F 53.96 - 0.27 4.68

European High Yield Acc F 97.67 - 0.31 5.77

European High Yield Inc F 43.36 - 0.13 5.96

European High Yld Acc(Gross) F 110.93 - 0.35 5.72

European High Yld Inc(Gross) F 43.48 - 0.15 5.96

European Opportunities Inc F 58.45 - 0.41 0.00

European Opportunities Acc F 59.50 - 0.41 0.44

European Smlr Cos Acc F 127.66 - 0.56 0.82

Global Bd Acc (Gross) F 125.07 - -0.10 1.87

Global Bd Inc (Gross) F 79.81 - -0.07 1.90

Global Bond Acc F 118.30 - -0.10 1.87

Global Bond Inc F 79.74 - -0.06 1.90

Global Equity (acc) F 355.45 - 0.66 1.33

Global Equity (inc) F 327.91 - 0.61 1.35

Global Equity Income Acc F 89.91 - 0.14 3.44

Global Equity Income Inc F 80.08 - 0.12 3.53

Gbl Financial Capital Acc 72.49 - 0.40 -

Gbl Financial Capital Inc 69.41 - 0.38 -

Gbl Financial Cap Acc Gross 73.50 - 0.40 -

Gbl Financial Cap Inc Gross 69.63 - 0.38 -

Global Opportunities Acc F 68.30 - 0.38 1.36

Global Smaller Cos Acc F 1246.40 - 0.13 0.52

Global Smaller Cos Inc F 1196.84 - 0.13 0.53

High Income Acc F 570.22 - 0.21 4.10

High Income Inc F 342.71 - 0.12 4.22

Fund Bid Offer D+/- Yield

Hong Kong & China Acc F 353.58 - -3.13 1.08

Income & Growth Acc F 724.97 - 0.77 4.46

Income & Growth Inc F 345.21 - 0.36 4.61

Income Acc F 2205.68 - 1.05 4.13

Income Inc F 1350.30 - 0.64 4.25

Japan Acc F 224.79 - 0.87 0.30

Japanese Smlr Cos Acc F 44.79 - -0.39 0.00

Latin America Acc F 179.91 - -0.25 1.37

Latin America Inc F 154.59 - -0.21 1.38

Managed Growth Acc F 123.85 - 0.21 1.36

Managed Growth Inc F 105.49 - 0.18 1.38

Managed Income Acc F 124.98 - 0.15 3.62

Managed Income Inc F 82.78 - 0.10 3.71

Money Acc F 89.55 - 0.00 0.69

Money Acc (Gross) F 94.49 - 0.00 0.69

Monthly Income Plus Acc F 261.67 - 0.47 6.34

Monthly Income Plus Acc (Gross) F 298.80 - 0.54 6.29

Monthly Income Plus Inc F 108.40 - 0.19 6.53

Monthly Income Plus Inc (Gross) F 108.55 - 0.20 8.16

Pacific Acc F 772.31 - 1.39 0.64

Pacific Inc F 714.08 - 1.28 0.65

Tactical Bond Acc F 64.24 - 0.14 4.68

Tactical Bond Inc F 58.29 - 0.12 4.83

Tactical Bond Acc (Gross) F 65.95 - 0.14 4.66

Tactical Bond Inc (Gross) F 58.40 - 0.12 4.84

UK Aggressive Acc F 143.29 - 0.80 1.87

UK Aggressive Inc F 122.87 - 0.68 1.91

UK Growth Acc F 404.59 - 1.58 2.16

UK Growth Inc F 265.21 - 1.03 2.21

UK Smaller Cos Equity Acc F 577.47 - 6.72 1.10

UK Smaller Cos Equity Inc F 452.10 - 5.26 1.11

UK Strategic Income Acc F 122.68 - 0.46 3.91

UK Strategic Income Inc F 100.10 - 0.37 4.02

US Equity Acc F 376.55 - 0.96 0.53Invesco Perpetual Funds (No Trail)Asian (No Trail) Acc F 164.16 - -0.80 1.36

Asian (No Trail) Inc F 152.99 - -0.75 1.38

Asian Equity Income (No Trail) Acc F 114.15 - -0.57 3.87

Balanced Risk 6 No Trail Acc 102.86 - -0.12 -

Balanced Risk 8 No Trail Acc 104.28 - -0.19 -

Balanced Risk 10 No Trail Acc 105.68 - -0.17 -

IP Asian Equity Income (No Trail) Inc F 106.37 - -0.54 3.98

Corporate Bond (No Trail) Acc F 149.18 - 0.21 4.92

Corporate Bond (No Trail) Inc F 116.60 - 0.16 5.08

Distribution (No Trail) Acc F 142.96 - 0.30 5.70

Distribution (No Trail) Inc F 105.29 - 0.22 5.86

Emerging Countries (No Trail) Acc F 149.25 - -0.89 1.40

Emerging Countries (No Trail) Inc F 143.87 - -0.85 1.42

Emerging European (No Trail) Acc F 91.74 - -0.28 1.10

Emerging European (No Trail) Inc F 88.40 - -0.27 1.11

European Equity (No Trail) Acc F 102.72 - 0.79 2.69

European Equity (No Trail) Inc F 90.58 - 0.69 2.77

European Equity Income (No Trail) Acc F 105.86 - 0.69 4.00

European Equity Income (No Trail) Inc F 88.08 - 0.58 4.12

European High Income (No Trail) Acc F 138.36 - 0.69 4.53

European High Income (No Trail) Inc F 109.89 - 0.55 4.64

European High Yield (No Trail) Acc F 199.74 - 0.64 6.17

European High Yield (No Trail) Inc F 165.95 - 0.53 6.38

European Opportunities (No Trail) Acc F 122.82 - 0.85 0.94

European Opportunities (No Trail) Inc F 118.38 - 0.82 0.95

European Smaller Companies (No Trail) Acc F 154.57 - 0.68 1.32

Global Balanced Index (No Trail) Acc F 122.42 - 0.14 2.71

Global Bond (No Trail) Acc F 132.19 - -0.10 2.12

Global Bond (No Trail) Inc F 123.71 - -0.10 2.15

Global Equity (No Trail) acc F 154.69 - 0.29 1.80

Global Equity (No Trail) inc F 147.82 - 0.28 1.83

Global Equity Income (No Trail ) Acc F 183.36 - 0.28 3.43

Global Equity Income (No Trail) Inc F 163.31 - 0.25 3.51

Global ex UK Core Equity Index ( No Trail) Acc F 122.86 - 0.47 1.77

Global ex UK Enhanced Index ( No Trail) Acc F 141.24 - 0.56 2.12

Gbl Fin Cap No Trail Acc 145.63 - 0.80 -

Gbl Fin Cap No Trail Inc 139.47 - 0.77 -

Global Opportunities (No Trail) Acc F 173.28 - 0.97 1.83

Global Smaller Companies (No Trail) Acc F 179.53 - 0.02 1.04

Global Smaller Companies (No Trail) Inc F 174.80 - 0.03 1.05

High Income (No Trail) Acc F 120.21 - 0.04 4.08

High Income (No Trail) Inc F 96.29 - 0.04 4.20

Hong Kong & China (No Trail) Acc F 138.24 - -1.23 1.57

Income & Growth (No Trail) Acc F 168.26 - 0.18 4.43

Income & Growth (No Trail) Inc F 146.17 - 0.15 4.59

Income (No Trail) Acc F 119.51 - 0.06 4.12

Income (No Trail) Inc F 96.31 - 0.05 4.24

Japan (No Trail) Acc F 105.30 - 0.40 0.82

Japanese Smaller Companies (No Trail) Acc F 112.47 - -0.98 0.00

Latin American (No Trail) Acc F 171.51 - -0.23 1.87

Latin American (No Trail) Inc F 161.67 - -0.22 1.90

Managed Growth (No Trail) Acc F 148.28 - 0.25 2.54

Managed Growth (No Trail) Inc F 141.30 - 0.25 2.61

Managed Income (No Trail) Acc F 148.08 - 0.18 3.62

Managed Income (No Trail) Inc F 131.54 - 0.16 3.70

Monthly Income Plus (No Trail) Acc F 148.78 - 0.27 6.29

Monthly Income Plus (No Trail) Inc F 105.31 - 0.18 6.48

Pacific (No Trail) Acc F 141.26 - 0.25 1.13

Pacific (No Trail) Inc F 136.23 - 0.24 1.21

Tactical Bond (No Trail) Acc F 129.98 - 0.27 5.11

Tactical Bond (No Trail) Inc F 116.72 - 0.24 5.28

UK Aggressive (No Trail) Acc F 116.20 - 0.65 2.30

UK Aggressive (No Trail) Inc F 101.64 - 0.57 2.36

UK Enhanced Index (No Trail) Acc F 316.57 - 0.24 3.77

UK Enhanced Index (No Trail) Inc F 217.34 - 0.17 3.87

UK Growth (No Trail) Acc F 105.50 - 0.41 2.60

UK Growth (No Trail) Inc F 90.04 - 0.35 2.67

UK Smaller Companies Equity (No Trail) Acc F 185.36 - 2.16 1.57

FTfm

18 FINANCIAL TIMES MONDAY JANUARY 14 2013

Fund Bid Offer D+/- Yield

UK Smaller Companies Equity (No Trail) Inc F 177.27 - 2.07 1.59

UK Strategic Income (No Trail) Acc F 480.49 - 1.78 3.90

UK Strategic Income (No Trail) Inc F 392.11 - 1.45 4.01

US Equity (No Trail) Acc F 154.59 - 0.40 0.98

Invesco (LUX)Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282FSA RecognisedInvesco Management SAInvesco Asia Balanced A dist $ 16.19 - 0.03 5.07

Invesco Asia Consumer Demand Fund A income $ 12.67 - -0.06 0.34

Invesco Asia Infrastructure (A) $ 13.88 - 0.00 1.14

Invesco Asia Opportunities Equity A $ 97.28 - -0.02 0.00

Invesco Absolute Return Bond Fund A € 2.80 - 0.00 0.00

Invesco Balanced Risk Allocation Fund A € 14.36 - -0.03 0.00

Invesco Capital Shield 90 (EUR) A € 11.68 - -0.01 0.00

Invesco Emerging Europe Equity Fund A $ 11.36 - 0.01 0.00

Invesco Emerging Local Currencies Debt A Inc $ 11.22 - 0.00 5.27

Invesco Emerging Mkt Quant.Eq. A $ 12.32 - -0.01 0.00

Invesco Energy A $ 24.51 - 0.21 0.00

Invesco Euro Corporate Bond Fund (A) € 15.62 - -0.01 0.00

Invesco Euro Inflation Linked Bond A € 15.20 - -0.04 0.00

Invesco Euro Reserve A € 322.63 - 0.00 0.00

Invesco European Bond A € 5.92 - -0.01 0.00

Invesco European Growth Equity A € 17.47 - -0.03 0.00

Invesco Global Absolute Return Fund A Class € 10.66 - 0.02 0.00

Invesco Global Bond A Inc $ 5.73 - 0.01 1.65

Invesco Global Equity Income Fund A $ 47.71 - 0.22 0.00

Invesco Global Inc Real Estate Sec A dist $ 9.21 - 0.01 3.13

Invesco Global Inv Grd Corp Bond A Dist $ 11.46 - -0.01 2.94

Invesco Global Leisure A $ 23.27 - 0.10 0.00

Invesco Global Smaller Comp Eq Fd A $ 40.63 - 0.22 0.00

Invesco Global Structured Equity A $ 33.19 - 0.19 0.99

Invesco Global Total Ret.(EUR) Bond Fund A € 12.01 - -0.02 0.00

Invesco Gold & Precious Metals A $ 9.07 - 0.15 0.00

Invesco Greater China Equity A $ 37.08 - -0.19 0.00

Invesco India Equity A $ 38.27 - -0.20 0.00

Invesco Japanese Equity Adv Fd A ¥ 2168.00 - 25.00 0.00

Invesco Japanese Value Eq Fd A ¥ 728.00 - 9.00 0.00

Invesco Latin American Equity A $ 11.08 - 0.02 0.00

Invesco Nippon Small/Mid Cap Equity A ¥ 550.00 - 3.00 0.00

Invesco Pan European Equity A EUR Cap NAV € 13.37 - -0.03 0.00

Invesco Pan European High Income Fd A € 12.18 - 0.01 4.04

Invesco Pan European Small Cap Equity A € 14.10 - -0.05 0.00

Invesco Pan European Structured Equity A € 11.13 - -0.05 0.00

Invesco UK Investment Grade Bond A £ 0.94 - 0.00 3.06

Invesco US Structured Equity A $ 15.74 - 0.11 0.00

Invesco US Value Eq Fd A $ 24.08 - 0.20 0.00

Invesco USD Reserve A $ 87.02 - 0.00 0.00

Invesco Global Asset Management Ltd (IRL)Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200FSA RecognisedInvesco Stlg Bd A QD F £ 2.59 - 0.01 4.61

Invesco Asian Equity A $ 5.96 - 0.00 0.35

Invesco ASEAN Equity A $ 106.00 - 0.08 0.63

Invesco Bond A $ 28.85 - -0.03 1.84

Invesco Continental Eurp Small Cap Eqty A $ 145.55 - 1.33 0.28

Invesco Emerging Markets Equity A $ 38.16 - -0.10 0.00

Invesco Emerging Markets Bond A $ 23.48 - 0.01 4.31

Invesco Continental European Equity A € 5.60 - -0.01 1.15

Invesco Gilt A £ 14.00 - -0.03 2.47

Invesco Global Small Cap Equity A NAV $ 96.74 - 0.33 0.04

Invesco Global High Income A NAV $ 13.91 - 0.02 4.95

Invesco Gbl R/Est Secs A GBP F F £ 6.75 - -0.03 1.02

Invesco Global Health Care A $ 83.06 - 0.51 0.00

Invesco Global Select Equity A $ 11.18 - 0.03 0.00

Invesco Jap Eqty Core A $ 1.42 - 0.01 0.26

Invesco Japanese Equity A $ 15.14 - 0.09 0.00

Invesco Korean Equity A $ 23.39 - 0.05 0.00

Invesco PRC Equity A $ 48.09 - -0.16 0.00

Invesco Pacific Equity A $ 40.97 - 0.21 0.34

Invesco Global Technology A $ 11.48 - 0.06 0.00

Invesco UK Eqty A £ 6.23 - 0.02 1.71

Invest ADClient services: +971 2 692 6101 clientservices@InvestAD.comOther International FundsInvest AD - Iraq Opportunity Fund $ 92.67 - -2.21 0.00

Invest AD - Emerging Africa Fund $ 1091.42 - -14.01 -

Invest AD - GCC Focus Fund $ 1071.35 - 3.68 -

Invest AD - Middle East & Afr Bd Fund $ 1016.68 - 0.76 -

Fund Bid Offer D+/- Yield

Investec Fd Mgrs (1200)F (UK)2 Gresham Street, London, EC2V 7QPBroker Support 020 7597 1900, Dealing 020 7597 2300www.investecassetmanagement.com,Authorised Inv FundsOEIC Series i,ii,iii, & ivAmerican A Acc 157.68 - 0.26 0.00

Asia ex Japan A Acc 359.62 - -2.55 0.81

Diversified Growth A Acc 104.09 - 0.25 0.93

Diversified Growth A Inc 117.86 - 0.28 0.89

Capital Accumulator A Acc 186.92 - 0.44 0.00

Cautious Managed A Acc 345.86 - 0.61 1.16

Cautious Managed A Inc 231.41 - 0.42 1.17

Diversified Income A Acc 254.36 - -0.37 5.46

Diversified Income A Inc 81.86 - -0.12 5.52

Emerging Mkts Blended Debt A Acc 102.80 - -0.44 -

Emerging Mkts Blended Debt A Acc Gross 103.00 - -0.45 -

Emerging Mkts Blended Debt A Inc 102.34 - -0.44 -

Emerging Mkts Equity A Acc 107.33 - -0.31 -

Emrg Mkts Local Curr Debt A Acc 192.11 - -0.73 5.87

Emrg Mkts Local Curr Debt A Inc 136.16 - -0.52 5.87

Emrg Mkts Local Curr Debt Gross I Acc 211.46 - -0.79 5.86

Enhanced Natural Resources A Acc 113.68 - -0.12 0.77

Global Bond A Acc 115.22 - -0.28 1.64

Global Bond A Inc 94.16 - -0.24 1.64

Global Bond I Gross Inc 1007.09 - -2.48 2.15

Global Dynamic A Acc 83.37 - -0.09 0.33

Global Energy A Acc 232.07 - 1.33 0.58

Global Equity A Acc 86.34 - 0.15 0.35

Global Franchise A Acc 102.83 - 0.39 -

Global Free Enterprise A Acc 443.44 - 1.01 0.17

Global Gold A Acc 167.39 - 2.33 0.00

Global Special Situations A Acc 130.71 - 0.57 1.10

Global Special Situations A Inc 106.22 - 0.46 -

Managed Growth A Acc 138.98 - 0.28 0.19

Monthly High Income A Acc 185.93 - 0.18 6.88

Monthly High Income A Inc 75.06 - 0.07 6.94

Multi-Asset Protector A Acc 132.40 - 0.25 0.03

Strategic Bond Fund A Acc 230.08 - -0.28 4.09

Strategic Bond Fund A Inc 124.69 - -0.16 4.12

Target Return A Acc 110.24 - -0.02 1.19

Target Return A Inc 100.13 - -0.02 -

UK Alpha A Acc 1381.74 - 1.35 1.45

UK Blue Chip A Acc 624.46 - 1.43 1.95

UK Smaller Companies A Acc 2412.41 - 8.41 0.29

UK Smaller Companies A Inc 2242.28 - 7.82 0.29

UK Special Situations A Acc 854.83 - -0.86 2.47

UK Special Situations A Inc 362.38 - -0.37 2.54

Investec Asset Management Ireland Ltd (IRL)JP Morgan Admin Svs Ire Ltd, JP Morgan Hse, IFSC Dub 1 00 353 1 612 3363FSA RecognisedInvestec Liquidity Funds PlcEuro Liquidity A Acc EUR * € 11.90 - 0.00 -

Euro Liquidity I Inc EUR * € 1.00 - 0.00 0.01

Short Dated Bd A Acc GBP * £ 13.05 - 0.00 -

Short Dated Bd I Acc GBP * £ 13.95 - 0.00 -

Sterling Liquidity A Acc GBP * £ 13.17 - 0.00 -

Sterling Liquidity I Inc GBP * £ 1.00 - 0.00 0.28

US$ Liquidity A Acc USD * $ 11.96 - 0.00 -

US$ Liquidity I Inc USD * $ 1.00 - 0.00 0.16

Investec Global Strategy Fund (LUX)49 Avenue JF KennedyL-1855 Luxembourg Enquiries 020 7597 1800FSA RecognisedInvestec Global Strategy FundAfrica Opps A Acc USD $ 20.25 - -0.04 0.40

American Equity A Acc USD $ 16.25 - 0.11 0.00

American Equity A Inc USD $ 76.00 - 0.50 0.00

Asia Pacific Eq. A Acc USD $ 27.27 - 0.35 0.73

Asia Pacific Eq. A Inc USD $ 26.78 - 0.35 0.78

Asian Equity A Acc USD $ 20.81 - 0.26 0.40

Asian Equity A Inc USD $ 30.41 - 0.38 0.36

EAFE A Inc USD $ 16.35 - 0.19 0.37

Emrg Mkts Blended Debt A Acc USD $ 23.09 - 0.05 4.80

Emrg Mkts Blended Debt A Inc USD $ 20.69 - 0.05 4.85

Emrg Mkts Corp Debt A Acc USD $ 22.85 - 0.02 2.86

Emrg Mkts Corp Debt A Inc USD $ 20.72 - 0.01 -

Emrg Mkts Curr A Acc USD $ 20.33 - 0.08 2.86

Emrg Mkts Curr Alpha A Acc USD $ 19.28 - -0.01 0.00

Emrg Mkts Equity A Acc USD $ 18.74 - 0.17 0.00

Emrg Mkts Hard Curr Debt A Inc USD $ 23.26 - 0.00 2.66

Emrg Mkts Local Curr Debt A Acc USD $ 29.33 - 0.15 6.32

Emrg Mkts Local Curr Debt A Inc USD $ 20.56 - 0.10 6.42

Emrg Mkts Local Curr Dyn Debt A Acc USD $ 22.22 - 0.10 5.63

Emrg Mkts Local Curr Dyn Debt A Inc USD $ 19.89 - 0.09 5.69

Emerging Markets Multi-Asset A Acc USD $ 22.54 - 0.11 0.00

Emerging Markets Multi-Asset A Inc USD $ 22.25 - 0.11 0.68

Enhanced Gbl Energy A Acc USD $ 16.71 - 0.13 0.00

Enhanced Nat Resources A Acc USD $ 19.66 - 0.20 0.00

Euro Money A Acc EUR € 69.00 - 0.00 0.00

Euro Money A Inc EUR € 26.10 - 0.00 0.00

European Equity A Inc USD $ 377.29 - 6.81 0.77

European Equity A Acc USD $ 15.89 - 0.29 0.75

Global Bond A Acc USD $ 100.16 - 0.18 1.08

Global Bond A Inc USD $ 45.43 - 0.08 1.10

Global Contrarian Equity A Acc USD $ 22.78 22.78 0.24 0.00

Global Dynamic A Acc USD $ 106.87 - 0.83 0.00

Global Dynamic A Inc USD $ 105.79 - 0.83 0.00

Global Energy A Acc USD $ 17.87 - 0.20 0.26

Global Energy A Inc USD $ 313.87 - 3.39 0.18

Global Energy Long Short A Acc USD $ 17.03 - 0.11 0.00

Global Equity A Acc USD $ 241.71 - 2.15 0.00

Fund Bid Offer D+/- Yield

Global Equity A Inc USD $ 239.56 - 2.13 0.00

Global Franchise A Acc USD $ 32.75 - 0.28 0.66

Global Franchise A Inc USD $ 32.28 - 0.29 0.68

Global Gold A Acc USD $ 21.06 - 0.39 0.00

Global Gold A Inc USD $ 75.89 - 1.41 0.00

Global Natural Resources A Acc USD $ 10.62 - 0.12 0.00

Global Natural Resources A Inc USD $ 10.62 - 0.12 0.00

Global Opp Equity A Inc USD $ 24.94 - 0.24 0.20

Global Strat Equity A Acc USD $ 17.09 - 0.20 0.00

Global Strat Equity A Inc USD $ 92.91 - 1.09 0.00

Global Strategic Inc A Acc USD $ 26.44 - 0.01 3.88

Global Strategic Inc A Inc USD $ 20.96 - 0.01 3.91

Global Strat Managed A Acc USD $ 100.56 - 0.63 0.14

Global Strat Managed A Inc USD $ 43.93 - 0.28 0.16

High Income Bond A Acc GBP Hdg £ 71.40 - 0.03 6.53

High Income Bond A Inc GBP Hdg £ 17.43 - 0.00 6.76

Inv Grade Corp Bond A Acc USD $ 21.22 - -0.01 3.99

Inv Grade Corp Bond A Inc USD $ 29.84 - -0.01 4.03

Latin Amer.Corp.Debt A Acc USD $ 25.75 - 0.01 5.53

Latin Amer.Corp.Debt A Inc USD $ 20.43 - 0.01 5.58

Latin Amer.Eq. A Acc USD $ 22.13 - 0.00 0.70

Latin Amer.Sm Cos A Acc USD $ 26.86 - 0.07 -

Managed Currency A Acc USD $ 130.55 - 0.37 0.00

Managed Currency A Inc USD $ 35.22 - 0.10 0.00

Sterling Money A Acc GBP £ 56.42 - 0.00 0.05

Sterling Money A Inc GBP £ 9.96 - 0.00 0.05

UK Equity A Acc GBP £ 11.46 - 0.03 1.31

UK Equity A Inc GBP £ 62.99 - 0.21 1.35

US Dollar Money A Acc USD $ 65.62 - 0.00 0.01

US Dollar Money A Inc USD $ 20.05 - 0.00 0.01

Investec Asset Mgmt (Guernsey) Ltd (GSY)RegulatedInvestec Expert Investment Funds PCC LimitedGlobal Commodities & Resources A USD $ 29.12 - -0.14 -Investec Professional Funds PCC LtdGlobal Diversified Growth I USD $ 21.45 - 0.07 -

Global Diversified Growth A USD $ 29.62 - 0.10 -Investec Premier Funds PCC LtdAfrica A USD $ 21.56 - 0.80 -

Pan Africa A USD $ 29.12 - 0.96 -

JPMorgan Asset Mgmt (1200)F (UK)Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQBrokerline: 0800 727 770, Clients: 0800 20 40 20Authorised Inv FundsJPM Retail OEIC (A class unless stated)Asia Acc 114.40 - -1.30 0.45

Asia Inc 64.26 - -0.74 0.54

Balanced Total Rt Acc ... C 55.46xd - 0.21 2.04

Balanced Total Rt Inc ... C 49.85xd - 0.20 2.05

Cautious Total Rt Acc 56.26xd - 0.18 1.50

Cautious Total Rt Inc 49.98xd - 0.17 1.50

Diversified Real Ret Acc 51.92 - 0.19 -

Diversified Real Ret Inc 51.84 - 0.20 -

Emerging Mkts Acc 155.50 - -1.70 0.41

Emerging Mkts Inc 68.05 - -0.75 0.41

Emrg Mkts Inc Acc... C 55.86 - -0.34 3.55

Emrg Mkts Inc Inc... C 55.47 - -0.33 3.57

Emrg Mkts Infra Acc 73.86 - -0.57 0.67

Emrg Mkts Infra Inc 72.65 - -0.55 0.67

Europe Acc 792.40 - 5.80 1.21

Europe Inc 47.72 - 0.35 1.19

Eur Dynamic exUK Acc 116.50 - 0.30 1.28

Eur Dynamic exUK £ hdg Acc 117.70 - -0.40 1.20

Eur Dynamic exUK Inc 55.02 - 0.13 1.37

Eur Smaller Cos Acc 315.90xd - 0.80 0.58

Eur Smaller Cos Inc 41.22xd - 0.11 0.60

Global Equity Acc 744.70 - 3.50 0.56

Global Equity Inc 56.04 - 0.27 0.56

Global Bond exUK Acc 231.50 - -0.20 1.18

Global Bond exUK Inc 186.80 - -0.20 1.18

Global Consumer Trends Acc 72.87 - 0.06 0.65

Global Consumer Trends Inc 70.19 - 0.06 0.65

Global Eq Abs.Alpha Acc 49.66 - 0.20 0.00

Global Eq Abs.Alpha Inc 49.66 - 0.20 0.00

Global Eq Income £ hdg Acc... C 51.56xd - 0.12 3.55

Global Eq Income £ hdg Inc ... C 41.20xd - 0.09 3.61

Global Eq Income Acc... C 55.32xd - 0.03 3.56

Global Eq Income Inc ... C 53.53xd - 0.03 3.63

Global Financials Acc 585.80 - 1.80 0.89

Global Financials Inc 34.15 - 0.10 0.89

Global High Yield Bond Acc ... C 94.53xd - 0.11 6.62

Global High Yield Bond Inc ... C 41.71xd - 0.05 6.62

Global Mining Acc 34.11 - 0.03 0.00

Global Property Secs Acc 47.15 - -0.01 1.38

Global Property Secs Inc 41.72 - -0.02 1.38

Japan Acc 178.60 - -0.40 0.02

Japan Inc 43.10 - -0.10 0.00

Multi-Asset Inc Acc... C 74.42xd - 0.09 4.42

Multi-Asset Inc Inc... C 62.58xd - 0.08 4.56

Multi-Manager Growth Acc 563.90 - 0.40 0.28

Multi-Manager Growth Inc 533.20 - 0.30 0.28

Natural Resources Acc 755.60 - 7.00 0.00

Natural Resources Inc 53.57 - 0.50 0.00

New Europe Acc 205.70 - -0.40 0.78

New Europe Inc 51.60 - -0.12 0.78

Portfolio Acc 150.00 - 0.40 0.42

Sterling Corporate Bond Acc 74.05xd - 0.44 2.54

Sterling Corporate Bond Inc 49.35xd - 0.29 2.54

Fund Bid Offer D+/- Yield

Strategic Bond Acc 67.32xd - -0.01 3.12

Strategic Bond Inc 60.48xd - -0.02 3.12

UK Active Index + E Acc 224.30 - 0.20 2.81

UK Active Index + E Inc 46.26 - 0.03 2.87

UK Dynamic Acc 115.80 - 0.50 1.56

UK Dynamic Inc 98.73 - 0.40 1.56

UK Eq & Bond Inc Acc ... C 114.10xd - 0.10 3.54

UK Eq & Bond Inc Inc ... C 73.52xd - 0.07 3.63

UK Equity Acc 354.30 - 0.70 1.58

UK Equity Inc 41.70 - 0.09 1.58

UK Focus Acc 60.27 - 0.16 1.65

UK Focus Inc 53.03 - 0.15 1.65

UK Higher Inc Acc ... C 724.20 - 1.10 3.73

UK Higher Inc Inc ... C 474.70 - 0.70 3.73

UK Managed Equity Acc 54.37xd - 0.02 2.26

UK Managed Equity Inc 48.46xd - 0.03 2.31

UK Smaller Cos Acc 260.90xd - 1.30 0.51

UK Smaller Cos Inc 50.74xd - 0.26 0.51

UK Strategic Eq Inc Acc ... C 118.90xd - 0.30 3.80

UK Strategic Eq Inc Inc ... C 85.54xd - 0.19 3.93

UK Strategic Gth Acc 81.01 - 0.16 0.94

UK Strategic Gth Inc 78.57 - 0.16 0.94

US Acc 468.70 - 1.30 0.00

US Inc 65.04 - 0.19 0.00

US Equity Income Acc ... C 82.64xd - 0.29 2.35

US Equity Income £ hdg Inc ... C 76.47xd - 0.53 2.35

US Equity Income Inc ... C 74.95xd - 0.26 2.39

US Select Acc 72.17 - 0.33 0.03

US Select Inc 71.44 - 0.33 0.03

US Smaller Cos Acc 266.00xd - -1.50 0.00

US Smaller Cos Inc 69.72xd - -0.38 0.00

JPMorgan Charity Funds (UK)Finsbury Dials, 20 Finsbury St, London EC2Y 9AQ 020 7742 9175Property & Other UK Unit TrustsUK Equity Fund for Charities I £ 2.332070xd 2.341360 0.002640 3.41

Bond Fund for Charities £ 1.317310xd 1.325200 -0.001400 3.87

JPMorgan Asset Management (Europe) S.a.r.l (LUX)6 Route de Trèves L-2633 Senningerberg LuxembourgTel (352) 34 10 1 (Other funds)Fax (352) 34 10 8000 (Others funds)www.jpmorgan.com/assetmanagementFSA RecognisedEquity USJF America Eq A (dist)-USD (1) F $ 51.73 - 0.19 -

JF US Smaller Co.A (dist)-USD (1) $ 17.68 - -0.02 -

JF US Value A (dist)-USD (1) $ 14.79 - 0.02 -

JPM Am Eq A (acc)-USD (1) F $ 12.71 - 0.05 -

JPM Am Eq A (dist)-USD (1) $ 96.42 - 0.35 -

JPM Am Eq A (acc)-EUR Hdg (1) F € 7.77 - 0.02 -

JPM Am L Cap A (acc)-EUR (1) F € 11.88 - -0.09 -

JPM Am L Cap A (acc)-USD (1) F $ 13.28 - 0.05 -

JPM Am L Cap A (dist)-USD (1) F $ 11.80 - 0.04 -

JPM US Smaller Co.A (acc)-USD (1) F $ 11.87 - -0.01 -

JPM US Smaller Co.A (dist)-USD (1) $ 120.62 - -0.09 -

JPM H US STEEP A (acc)-EUR (1) F € 9.89 - -0.07 -

JPM H US STEEP A (dist)-GBP (1) F £ 12.50 - -0.02 -

JPM US Value A (acc)-EUR Hdg (1) F € 8.13 - 0.01 -

JPM H US STEEP A (inc)-EUR (1) F € 9.74 - -0.07 -

JPM H US STEEP A (acc)-USD (1) F $ 13.04 - 0.05 -

JPM US Dyn A (acc)-EUR (1) € 7.10 - -0.06 -

JPM US Dyn A (acc)-USD (1) F $ 11.21 - 0.02 -

JPM US Dyn A (dist)-USD (1) $ 15.45 - 0.03 -

JPM US Growth A (acc)-EUR Hdg (1) F € 7.77 - 0.04 -

JPM US Growth A (acc)-USD (1) F $ 13.52 - 0.07 -

JPM US Growth A (dist)-GBP (1) F £ 6.46 - 0.00 -

JPM US Growth A (dist)-USD (1) F $ 7.24 - 0.04 -

JPM US Select 130/30 A (acc)-EUR Hdg (1) F € 7.76 - 0.03 -

JPM US Select 130/30 A (acc)-USD (1) F $ 11.07 - 0.03 -

JPM US Select 130/30 A (dist)-GBP (1) F £ 7.29 - -0.01 -

JPM US Select 130/30 A (dist)-USD (1) F $ 11.26 - 0.04 -

JPM US Sm Cap Grth A (acc)-EUR (1) F € 74.66 - -0.61 -

JPM US Sm Cap Grth A (dist)-GBP (1) F £ 10.08 - -0.03 -

JPM US Sm Cap Grth A (acc)-USD (1) F $ 15.49 - 0.04 -

JPM US Sm Cap Grth A (dist)-USD (1) $ 106.67 - 0.28 -

JPM US Value A (dist)-GBP (1) F £ 15.06 - -0.04 -

JPM US Value A (acc)-USD (1) F $ 13.57 - 0.03 -

JPM US Value A (dist)-USD (1) F $ 16.93 - 0.03 -

JPM US Dyn 130/30 A (acc)-EUR Hdg (1) € 7.42 - 0.03 -

JPM US DYN 130/30 A (acc)-USD (1) F $ 10.59 - 0.04 -

JPM US DYN 130/30 A (dist)-GBP (1) F £ 8.31 - -0.01 -

JPM US DYN 130/30 A (dist)-USD (1) F $ 131.28 - 0.47 -Equity AsiaJF ASEAN Equity A (acc)-SGD (1) F S$ 17.76 - -0.06 -

JF Asia Al+ A (acc)-USD (1) $ 21.85 - -0.04 -

JF Asia P ExJapEq A (dist)-GBP (1) F £ 18.29 - 0.00 -

JF Asia P ExJapEq A (acc)-USD (1) F $ 19.23 - 0.09 -

JF Asia P ExJapEq A (dist)-USD (1) $ 48.54 - 0.23 -

JF Asia P ExJapEq A (acc)-SGD (1) F S$ 13.29 - 0.04 -

JF China A (acc)-USD (1) F $ 27.67 - 0.07 -

JF China A (acc)-SGD (1) F S$ 11.32 - 0.00 -

JF China A (dist)-HKD (1) F HK$ 10.39 - 0.03 -

JF China A (dist)-USD (1) $ 44.68 - 0.11 -

JF Greater China A (acc)-SGD (1) F S$ 14.30 - 0.08 -

JF Greater China A (acc)-USD (1) F $ 23.18 - 0.18 -

JF Greater China A (dist)-HKD (1) FHK$ 12.19 - 0.10 -

JF Greater China A (dist)-USD (1) F $ 28.66 - 0.23 -

JF Hong Kong A (acc)-USD (1) F $ 19.05 - 0.18 -

JF Hong Kong A (dist)-HKD (1) F HK$ 11.23 - 0.11 -

JF Hong Kong A (dist)-USD (1) F $ 49.39 - 0.46 -

JF India A (acc)-SGD (1) F S$ 13.22 - -0.01 -

JF India A (acc)-USD (1) F $ 24.41 - 0.04 -

JF India A (dist)-GBP £ 73.01 - -0.25 -

JF India A (dist)-USD (1) $ 71.81 - 0.11 -

JF Korea Eq A (acc)-USD (1) F $ 10.66 - 0.05 -

JF Korea Eq A (acc)-EUR (1) F € 8.08 - -0.05 -

JF Korea Eq A (dist)-USD (1) F $ 11.10 - 0.06 -

Fund Bid Offer D+/- Yield

JF Singapore A (acc)-SGD (1) F S$ 17.23 - 0.02 -

JF Japan Eq A (acc)-EUR (1) F € 4.86 - -0.03 -

JF Japan Eq A (dist)-GBP (1) F £ 6.10 - 0.00 -

JF Japan Eq A (acc)-JPY (1) ¥ 506.00 - 5.00 -

JF Japan Eq A (acc)-USD (1) F $ 7.67 - 0.05 -

JF Japan Eq A (dist)-USD (1) $ 19.32 - 0.12 -

JF Japan Sm Cap A (acc)-USD (1) F $ 6.82 - 0.01 -

JF Japan Sm Cap A (dist)-USD (1) $ 6.49 - 0.00 -

JF Pacific Eq A (acc)-EUR (1) F € 9.53 - -0.06 -

JF Pacific Eq A (dist)-GBP (1) F £ 13.12 - -0.01 -

JF Pacific Eq A (acc)-USD (1) $ 14.11 - 0.06 -

JF Pacific Eq A (dist)-USD (1) $ 65.85 - 0.28 -

JF Singapore A (acc)-USD (1) F $ 28.66 - 0.10 -

JF Singapore A (dist)-USD (1) F $ 36.43 - 0.12 -

JF Taiwan A (acc)-EUR (1) F € 15.31 - 0.01 -

JF Taiwan A (acc)-USD (1) F $ 16.00 - 0.18 -

JF Taiwan A (dist) HKD (1) F HK$ 12.08 - 0.14 -

JF Taiwan A (dist)-USD (1) F $ 13.60 - 0.16 -

JPM Japan 50 Eq A (acc)-EUR (hdg) (2) F € 83.99 - 1.23 -Equity Emerging MarketsJPM Brazil Equity A (acc)-USD (1) F $ 9.76 - -0.02 -

JPM Brazil Equity A (acc)-SGD (1) F S$ 11.45 - -0.05 -

JPM Brazil Equity A (acc)-EUR (1) F € 64.00 - -0.82 -

JPM Brazil Equity A (dist)-USD (1) F $ 9.29 - -0.02 -

JF Eastern Europe Eq A (dist)-EUR (1) F € 30.71 - -0.27 -

JF Latin Am Eq A (dist)-USD (1) F $ 43.88 - 0.15 -

JPM Eastern Europe Eq A (acc)-EUR (1) F € 19.13 - -0.17 -

JPM Eastern Europe Eq A (acc)-USD (1) F $ 127.35 - 0.26 -

JPM Eastern Europe Eq A (dist)-EUR (1) € 45.92 - -0.40 -

JPM Em Eur MEA Eq A (acc)-EUR (1) F € 17.52 - -0.21 -

JPM Em Eur MEA Eq A (acc)-USD (1) F $ 21.52 - -0.03 -

JPM Em Eur MEA Eq A (dist)-USD (1) F $ 59.87 - -0.07 -

JPM Em Eur MEA Afr Eq A (acc)-SGD (1) F S$ 13.83 - -0.04 -

JPM Em MEA Eq A (acc)-SGD (1) F * S$ 13.40 - -0.03 -

JPM Em Mkt Alpha Pl A (dist)-GBP (1) F £ 7.39 - -0.04 -

JPM Em Mkt Alpha Pl A (acc)-USD (1) F $ 16.11 - -0.01 -

JPM Em Mkt Alpha Pl A (dist)-USD (1) F $ 15.59 - -0.01 -

JPM Em Mkt Eq A (dist)-GBP (1) F £ 33.45 - -0.19 -

JPM Em Mkt Eq A (acc)-EUR (1) F € 13.93 - -0.16 -

JPM Em Mkt Eq A (acc)-USD (1) F $ 23.03 - -0.02 -

JPM Em Mkt Eq A (dist)-USD (1) $ 32.13 - -0.03 -

JPM Em Mkt Infra Eq A (acc)-EUR (1) F € 15.33 - -0.21 -

JPM Em Mkt Infra Eq A (acc)-USD (1) F $ 8.07 - -0.02 -

JPM Em Mkts Ccy Alpha A (acc)-EUR (1) F € 10.11 - 0.08 -

JPM Em Mkts Lcl Cur Dbt A (dist)-EUR(1) F € 104.61 - -0.88 -

JPM Em Mkts Loc Ccy Debt A (div)-EUR € 105.20 - -0.88 -

JPM Em Mkts Loc Ccy Debt A (dist)-GBP (1) F £ 85.26 - -0.20 -

JPM Em Mkts Loc Ccy Debt A (mth)-USD (1) F $ 15.71 - 0.04 -

JPM Em Mkts Eq A (acc)-SGD (1) F S$ 14.08 - -0.04 -

JPM Em Mkt Sm Cap A (acc)-EUR (1) F € 8.31 - -0.07 -

JPM Em Mkt Sm Cap A (dist)-GBP (1) F £ 6.20 - -0.01 -

JPM Em Mkt Sm Cap A (acc)-USD (1) F $ 10.93 - 0.03 -

JPM Latin Am Eq A (acc)-USD (1) F $ 32.84 - 0.11 -

JPM Latin Am Eq A (dist)-USD (1) $ 60.66 - 0.22 -

JPM Latin Am Eq A (acc)-SGD (1) F S$ 13.72 - 0.02 -

JPM Russia A (acc)-USD (1) F $ 12.71 - 0.03 -

JPM Russia A (dist)-USD (1) F $ 12.34 - 0.03 -

JPM Turkey Eq A (dist)-EUR (1) € 22.59 - -0.24 -Equity EuropeJF Euroland Eq A (dist)-USD (1) F $ 7.72 - 0.13 -

JF Europe Dynamic A (dist)-EUR (1) € 15.47 - 0.06 -

JF Europe Eq A (dist)-USD (1) F $ 37.03 - 0.51 -

JF Europe Sm Cap A (dist)-EUR (1) F € 11.29 - 0.03 -

JF Germany Eq A (dist)-EUR (1) F € 21.89 - 0.14 -

JPM Euroland Eq A (acc)-EUR (1) F € 10.57 - 0.08 -

JPM Euroland Eq A (dist)-EUR (1) € 32.71 - 0.22 -

JPM Euroland Eq A (inc)-EUR (1) F € 5.81 - 0.04 -

JPM Europe Dyn A (dist)-EUR (1) F € 13.53 - 0.06 -

JPM Europe Dyn A (acc)-EUR (1) F € 14.93 - 0.06 -

JPM Europe Dyn A (dist)-GBP (1) F £ 16.84 - 0.17 -

JPM Europe Dyn Mega Cap A (acc)-EUR (1) € 10.86 - 0.06 -

JPM Europe Dyn Mega Cap A (acc)-USD (1) F $ 10.98 - 0.18 -

JPM Europe Dyn Mega Cap A (inc)-EUR (1) F € 8.50 - 0.05 -

JPM Europe Dyn Mega Cap A (dist)-EUR (1) F € 8.21 - 0.05 -

JPM Europe Dyn Sm Cap A (dist)-EUR (1) F € 11.93 - -0.02 -

JPM Europe Dyn Sm Cap A (acc)-EUR (1) € 20.56 - -0.04 -

JPM Europe Eq A (acc)-EUR (1) F € 11.28 - 0.04 -

JPM Europe Eq A (dist)-EUR (1) € 34.39 - 0.11 -

JPM Europe Eq A (cap)-USD (1) F $ 14.25 - 0.20 -

JPM Europe Focus A (acc)-EUR (1) F € 10.35 - 0.07 -

JPM Europe Focus A (acc)-USD (1) F $ 12.57 - 0.21 -

JPM Europe Focus A (dist)-EUR (1) F € 8.67 - 0.06 -

JPM Europe Micro Cap A (acc)-EUR (1) F € 11.74 - 0.03 -

JPM Europe Micro Cap A (dist)-EUR (1) F € 11.47 - 0.03 -

JPM Europe 130/30 A (acc)-EUR (1) F € 9.80 - -0.01 -

JPM Europe 130/30 A (acc)-USD (1) F $ 14.11 - 0.13 -

JPM Europe Sel 130/30 A (acc)-EUR (1) F € 8.28 - 0.01 -

JPM Europe Sel 130/30 A (acc)-USD (1) F $ 12.25 - 0.15 -

JPM Europe Sel 130/30 A (dist)-EUR (1) F € 11.00 - 0.01 -

JPM Europe Sel 130/30 A (dist)-GBP (1) F £ 6.14 - 0.04 -

JPM Europe Sm Cap A (acc)-EUR (1) F € 13.90 - 0.04 -

JPM Europe Sm Cap A (dist)-EUR (1) € 38.02 - 0.10 -

JPM Europe Sm Cap A (dist)-GBP (1) F £ 15.44 - 0.13 -

JPM Europe Strat Grth A (acc)-EUR (1) F € 13.71 - -0.01 -

JPM Europe Strat Grth A (dist)-EUR (1) F € 8.51 - -0.01 -

JPM Europe Strat Grth A (dist)-GBP (1) F £ 12.74 - 0.07 -

JPM Europe Strat Val A (dist)-EUR (1) F € 11.54 - 0.04 -

JPM Europe Strat Val A (acc)-EUR (1) F € 10.42 - 0.03 -

JPM Europe Strat Val A (dist)-GBP (1) F £ 14.43 - 0.13 -

JPM Europe 130/30 A (dist)-EUR (1) F € 8.96 - -0.01 -

JPM Europe 130/30 A (dist)-GBP (1) F £ 7.34 - 0.03 -

JPM Germany Eq A (dist)-EUR (1) F € 8.81 - 0.05 -

JPM Germany Eq A (acc)-EUR (1) F € 17.26 - 0.10 -

JPM Global Dyn A (acc)-SGD (1) F S$ 14.70 - 0.05 -

Fund Bid Offer D+/- Yield

JPM Global Div A (div) - USD (1) $ 111.95 - 0.60 -

JPM High Eur STEEP A (dist)-GBP (1) F £ 10.21 - 0.06 -

JPM High Eur STEEP A (acc)-EUR (1) F € 12.04 - 0.00 -

JPM High Eur STEEP A (acc)-USD (1) F $ 15.93 - 0.18 -

JPM High Eur STEEP A (inc)-EUR (1) F € 11.45 - 0.01 -

JPM Turkey Eq A (acc)-EUR (1) € 16.24 - -0.17 -

JPM UK Eq A (acc)-GBP (1) F £ 12.47 - 0.01 -

JPM UK Eq A (dist)-GBP (1) £ 7.82 - 0.00 -Equity GlobalJF Gbl Dyn A (dist)-USD (1) F $ 14.03 - 0.08 -

JF Gbl Uncstr Eq (USD) A (dist)-USD (1) $ 39.81 - 0.30 -

JPM Gbl Div A (acc)-EUR (1) F € 85.42 - -0.46 -

JPM Gbl Div A (div)-EUR Hdg (1) € 79.45 - 0.19 -

JPM Gbl Dyn A (dist)-GBP (1) F £ 13.43 - 0.02 -

JPM Gbl Dyn A (acc)-USD (1) F $ 12.97 - 0.07 -

JPM Gbl Dyn A (dist)-USD (1) F $ 15.25 - 0.09 -

JPM Gbl Dyn A (acc)-EUR (1) F € 7.36 - -0.03 -

JPM Gbl Dyn A (acc)-CHF (hdg) (1) FSFr 124.30 - 0.37 -

JPM Gbl Dyn A (acc)-EUR Hdg (1) F € 5.64 - 0.02 -

JPM Gbl Dyn A (acc)-SGD (Hdg) (1) F S$ 12.25 - 0.04 -

JPM Gbl Dyn A (inc)-EUR (1) F € 7.48 - -0.04 -

JPM Gbl Focus A (acc)-EUR (1) F € 16.40 - -0.09 -

JPM Gbl Focus A (acc)-CHF (hdg) (1) FSFr 144.15 - 0.31 -

JPM Gbl Focus A (acc)-EUR Hgd (1) F € 8.88 - 0.02 -

JPM Gbl Focus A (dist)-EUR (1) € 21.96 - -0.13 -

JPM Gbl Real Estate Sec (USD) A (acc)-EUR Hdg (1) F € 6.52 - 0.00 -

JPM Gbl Real Estate Sec (USD) A (acc)-USD (1) F $ 9.92 - 0.02 -

JPM Gbl Real Estate Sec (USD) A (inc)-EUR Hdg (1) F € 5.93 - 0.00 -

JPM Gbl Sel Eq A (acc)-USD (2) F $ 166.39 - 0.91 -

JPM Gbl Sel Eq A (dist)-USD (2) F $ 112.91 - 0.62 -

JPM Gbl Soc Resp A (acc)-USD (1) F $ 10.47 - 0.09 -

JPM Gbl Soc Resp A (dist)-USD (1) F $ 6.23 - 0.05 -

JPM Gbl Uncstr Eq (USD) A (acc)-EUR Hdg (1) € 6.54 - 0.02 -

JPM Gbl Uncstr Eq (USD) A (acc)-EUR (1) € 80.00 - -0.26 -

JPM Gbl Uncstr Eq (USD) A (acc)-USD (1) $ 11.90 - 0.09 -

JPM Gbl Uncstr Eq (USD) A (dist)-EUR Hdg (1) € 6.18 - 0.02 -

JPM Gbl Uncstr Eq (USD) A (dist)-USD (1) $ 23.02 - 0.17 -Equity SectorJF Europe Tech A (dist)-EUR (1) F € 5.66 - 0.07 -

JF Pacific Tech A (acc)-EUR (1) F € 13.07 - -0.04 -

JF Pacific Tech A (acc)-USD (1) F $ 16.29 - 0.12 -

JF Pacific Tech A (dist)-USD (1) F $ 10.56 - 0.08 -

JF Pacific Tech A (dist)-GBP (1) F £ 12.32 - 0.04 -

JF US Tech A (dist)-USD (1) F $ 2.11 - 0.02 -

JPM Europe Tech A (acc)-EUR (1) F € 16.34 - 0.19 -

JPM Europe Tech A (dist)-EUR (1) F € 10.51 - 0.12 -

JPM Europe Tech A (dist)-GBP (1) F £ 8.20 - 0.15 -

JPM Gbl Cons Trends A (acc)-EUR (1) F € 13.82 - -0.07 -

JPM Gbl Cons Trends A (acc)-USD (1) F $ 17.87 - 0.10 -

JPM Gbl Nat Resources Fd (1) F S$ 17.06 - 0.14 -

JPM Gbl Natural Res A (dist)-EUR (1) F € 15.33 - 0.00 -

JPM Gbl Natural Res A (acc)-EUR (1) F € 17.79 - 0.00 -

JPM Gbl Natural Res A (acc)-USD (1) F $ 14.37 - 0.15 -

JPM H US STEEP A (acc)-EUR Hdg (1) F € 13.99 - 0.06 -

JPM US Tech A (acc)-EUR (1) F € 103.36 - -0.12 -

JPM US Tech A (dist)-GBP (1) F £ 1.83 - 0.01 -

JPM US Tech A (acc)-SGD (1) S$ 13.25 - 0.10 -

JPM US Tech A (acc)-USD (1) F $ 14.41 - 0.14 -

JPM US Tech A (dist)-USD (1) F $ 7.29 - 0.07 -Equity AfricaJPM Africa Eq A (acc)-EUR (1) F € 19.08 - -0.13 -

JPM Africa Eq A (acc)-USD (1) F $ 11.78 - 0.05 -

JPM Africa Eq A (dist)-GBP (1) F £ 7.95 - 0.00 -

JPM Africa Eq A (inc)-EUR (1) F € 75.81 - -0.49 -Bonds Broad MarketJPM Agg Bd A (acc)-USD (1) F $ 12.07 - -0.01 -

JPM Em Mkt Corp Bd A (acc)-EUR Hdg (1) F € 103.51 - -0.18 -

JPM Em Mkt Corp Bd A (acc)-USD (1) F $ 132.37 - -0.23 -

JPM Em Mkt Debt A (acc)-USD (1) F $ 18.27 - 0.02 -

JPM Euro Agg Bd A (acc)-EUR (1) F € 11.79 - -0.01 -

JPM Gbl Agg Bd A (acc)-USD (1) F $ 12.75 - 0.02 -

JPM Gbl Agg Bd A (dist)-USD (1) $ 13.46 - 0.02 -

JPM Gbl Conv (EUR) A (acc)-CHF Hdg (1) FSFr 22.04 - 0.04 -

JPM Gbl Conv (EUR) A (dist)-GBP Hdg (1) F £ 11.67 - 0.02 -

JPM Gbl Corp Bond A (div)-EUR Hdg (1) € 77.82 - -0.14 -Bonds Extended MarketJPM EU Gov Bd A (acc)-EUR (1) F € 12.60 - 0.02 -

JPM Gbl Conv (EUR) A (acc)-EUR (1) F € 12.43 - 0.02 -

JPM Gbl Conv (EUR) A (dist)-EUR (1) F € 10.32 - 0.02 -

JPM US Aggr Bd Aacc-EUR (hdg) (1) € 79.14 - -0.02 -(1) JPMorgan Funds

(2) JPMorgan Investment Funds

J.P. Morgan Private Fd Mgmt Ltd (UK)25 Bank Street, Canary Wharf, London, E14 5JPAuthorised Inv FundsJ.P. Morgan PB Funds ICVCInnovation 2000 B £ 12.50 - 0.33 0.60

Innovation 2001 B £ 15.12 - 0.40 0.60

Jefferies Umbrella Fund (LUX)11 Rue Aldringen, L-1118 Luxembourg 00 352 468193626FSA RecognisedEurope Convertible Bd A (Dis) - D - EUR F € 12.19 - -0.03 1.49

Europe Convertible Bd B (Cap) € 13.52 - -0.03 0.00

Global Convertible A (Dis) F $ 18.03 - 0.14 0.74

Global Convertible B (Cap) F $ 21.09 - 0.17 0.00

Global Convertible A Hdg GBP(Dis) F £ 11.57 - 0.08 0.70

Global Convertible B Hdg GBP (Cap) F £ 13.42 - 0.09 0.00

Global Convertible Hdg A (Cap) F $ 17.19 - 0.11 0.77

Global Convertible B Hdg (Dis) F $ 20.12 - 0.12 0.00

Global Convertible A Hdg EUR(Dis) F € 14.22 - 0.09 0.72

Global Convertible B Hdg EUR (Cap) F € 15.18 - 0.09 0.00

Global Convertible A Hdg CHF (Dis) FSFr 20.65 - 0.13 0.59

Global Convertible B Hdg CHF (Cap) FSFr 22.48 - 0.14 0.00

FTfm

FINANCIAL TIMES MONDAY JANUARY 14 2013 19

Fund Bid Offer D+/- Yield

Jubilee Financial Products LLPOther International FundsJubilee Emerging Europe Momentum Fund € 99.81 - - -

Swiss & Global Asset Management (LUX)funds@swissglobal-am.com, www.jbfundnet.comRegulatedJB BF ABS-EUR/A € 75.83 - 0.00 2.92

JB BF Absolute Ret Def-EUR/A € 104.59 - -0.04 2.39

JB BF Absolute Ret Def-GBP/A £ 104.56 - -0.03 2.30

JB BF Absolute Ret EM-CHF SFr 102.95 - 0.09 0.00

JB BF Absolute Ret EM-EUR/A € 103.94 - 0.10 2.79

JB BF Absolute Ret EM-USD/A $ 102.24 - 0.10 2.84

JB BF Absolute Ret Pl-EUR/A € 104.71 - -0.02 2.97

JB BF Absolute Ret Pl-GBP/A £ 110.97 - -0.01 2.76

JB BF Absolute Ret Pl-USD/A $ 111.16 - -0.01 2.75

JB BF Absolute Return GBP/A £ 108.18 - 0.04 2.23

JB BF Absolute Return-GBP/B £ 125.98 - 0.04 0.00

JB BF Absolute Return-EUR/A € 102.59 - 0.03 2.40

JB BF Absolute Return-USD/A $ 105.01 - 0.04 2.29

JB BF Cred Opportunities-EUR/B € 159.31 - 0.01 0.00

JB BF Credit Opportunities-USD $ 111.98 - 0.01 0.00

JB BF Dollar-USD/A $ 112.30 - -0.16 3.41

JB BF Dollar Med Term-USD/A $ 120.51 - -0.03 2.24

JB BF EM Infl Linked-CHF/A SFr 100.68 - 0.31 7.07

JB BF EM Infl Linked-EUR/A € 101.75 - 0.32 7.10

JB BF EM Infl Linked-GBP/A £ 100.56 - 0.33 7.08

JB BF EM Infl Linked-USD/A $ 102.43 - 0.35 7.05

JB BF Emerging-CHF/A SFr 109.72 - -0.07 -

JB BF Emerging-EUR/A € 138.28 - -0.12 5.27

JB BF Emerging-USD/A $ 160.79 - -0.01 4.18

JB BF Euro Government-EUR/A € 107.78 - 0.11 3.48

JB BF Euro-EUR/A € 122.83 - -0.07 3.58

JB BF Global Convert-EUR/A € 67.12 - 0.12 1.12

JB BF Global High Yield-EUR/A € 107.53 - 0.17 6.65

JB BF Global High Yield GBP/A £ 101.93 - 0.17 6.67

JB BF Global High Yield-USD/A $ 117.97 - 0.21 6.02

JB BF Inflation Linked-CHF/B SFr 107.71 - -0.14 0.00

JB BF Local Emerging-CHF/A SFr 104.03 - 0.57 4.17

JB BF Local Emerging-EUR/A € 104.98 - 0.57 4.13

JB BF Local Emerging-GBP/A £ 117.93 - 0.66 3.85

JB BF Local Emerging-USD/A $ 141.68 - 0.79 3.81

JB BF Swiss Franc-CHF/B SFr 189.27 - -0.14 0.00

JB BF Total Return-CHF SFr 106.02 - -0.01 0.00

JB BF Total Return-EUR/A € 45.55 - -0.01 3.18

JB Commodity-EUR/A € 72.04 - 0.39 1.45

JB Commodity-EUR/B € 84.30 - 0.45 0.00

JB Commodity-USD/A $ 81.64 - 0.43 1.89

JB Commodity-USD/B $ 95.97 - 0.51 0.00

JB EF Abs Ret Europe-EUR/A € 111.55 - -0.01 0.09

JB EF Abs Ret Europe-EUR/B € 111.64 - -0.02 0.00

JB EF Asia-USD/A $ 124.21 - -0.84 1.19

JB EF Biotech-USD/A $ 154.86 - 0.33 0.07

JB EF Black Sea-EUR/A € 31.58 - -0.41 3.79

JB EF Black Sea-USD/A $ 31.17 - 0.00 3.84

JB EF Central Europe-EUR/A € 200.95 - -2.11 2.11

JB EF Chindonesia-USD/A $ 97.85 - -1.17 0.16

JB EF Chindonesia-USD/B $ 98.11 - -1.18 0.00

JB EF Energy Transition-EUR/B € 121.94 - -0.50 0.00

JB EF Energy Transition-USD/B $ 126.96 - 1.14 0.00

JB EF Euro Large Cap-EUR € 113.09 - 0.29 0.00

JB EF Euroland Value-EUR/A € 115.28 - 0.12 2.52

JB EF Europe Sel.Fd-EUR/A € 62.16 - -0.06 2.01

JB EF Europe S&Mid Cap-EUR/A € 119.95 - 0.07 0.99

JB EF Europe-EUR/A € 177.64 - -0.58 1.78

JB EF Global-EUR/A € 66.98 - -0.44 2.15

JB EF German Value-EUR/A € 168.25 - -0.19 2.44

JB EF Gl Emerging Mkts-EUR/A € 75.41 - -0.72 1.62

JB EF Health Opport - USD/A $ 134.16 - 1.31 0.12

JB EF Health Opport-USD/B $ 134.38 - 1.31 0.00

JB EF Japan-JPY/A ¥ 8633.00 - 79.00 1.74

JB EF Luxury Brands-EUR/A € 172.82 - -2.05 0.27

JB EF Luxury Brands-USD/A $ 154.55 - 0.19 0.23

JB EF Luxury Brands-GBP/B £ 106.46 - -0.52 0.00

JB EF Special Val. EUR/A € 101.86 - -0.12 1.57

JB EF Swiss S&Mid Cap-CHF/B SFr 406.80 - 0.46 0.00

JB EF US Leading-USD/A $ 293.46 - 2.57 0.25

JB EF US Value-USD/A $ 127.42 - 0.92 0.33

JB Ms Africa Opp.-EUR/B € 95.11 - -1.14 -

JB Ms Global Sel. EUR/B € 103.62 - -0.75 0.00

JB Strategy Balanced-CHF/B SFr 135.69 - 0.06 0.00

JB Strategy Balanced-EUR € 135.52 - -0.03 0.00

JB Strategy Balanced-USD/B $ 118.39 - 0.41 0.00

JB Strategy Inc-CHF/B SFr 114.58 - -0.01 0.00

JB Strategy Inc-EUR/B € 146.63 - -0.07 0.00

JB Strategy Inc-USD/B $ 139.01 - 0.32 0.00

JB Strategy Growth-CHF/B SFr 82.66 - 0.02 0.00

JB Strategy Growth-EUR € 97.82 - -0.04 0.00

Fund Bid Offer D+/- Yield

Kairos Investment Management Ltd (CYM)RegulatedKairos Multi Strategy E1 (Est) € 1634.12 - 3.31 0.00

Kairos Multi Strategy E2 (Est) € 1219.73 - 2.31 0.00

Kairos Multi Strategy E3 (Est) € 1182.87 - 2.08 0.00

Kairos Multi Strategy D1 (Est) $ 1748.38 - 4.55 0.00

Kairos Multi Strategy D2 (Est) $ 1284.11 - 3.15 0.00

Kames Capital ICVC (UK)Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA0800 45 44 22 www.kamescapital.comAuthorised FundsEthical Cautious Managed A Acc £ 1.26 - 0.00 1.91

Ethical Cautious Managed A Inc £ 1.10 - 0.00 1.93

Ethical Corporate Bond A Acc £ 1.76 - 0.00 3.64

Ethical Corporate Bond A Inc £ 1.08 - 0.00 3.64

Ethical Equity A Acc £ 1.21 - 0.00 1.60

High Yield Bond A Acc £ 1.07 - 0.00 5.11

High Yield Bond A Inc £ 0.55 - 0.00 5.11

Inflation Linked A Acc £ 1.23 - 0.05 -

Investment Grade Bond A Acc £ 1.40 - 0.00 3.45

Investment Grade Bond A Inc £ 1.10 - 0.00 3.45

Sterling Corporate Bond A Acc £ 0.62 - 0.00 3.82

Sterling Corporate Bond A Inc £ 0.30 - 0.00 3.80

Strategic Assets A Acc £ 0.98 - 0.00 1.03

Strategic Bond A Acc £ 1.69 - 0.01 2.26

Strategic Bond A Inc £ 1.18 - 0.01 2.26

UK Equity Absolute Return A Acc £ 1.08 - 0.00 -

UK Equity A Acc £ 1.86 - 0.00 1.61

UK Equity Income A Acc £ 1.58 - 0.00 4.02

UK Equity Income A Inc £ 1.38 - 0.00 4.13

UK Opportunities A Acc £ 1.24 - 0.01 1.10

UK Smaller Companies A Acc £ 1.78 - 0.01 0.36

Kames Capital VCIC (IRL)1 North Wall Quay, Dublin 1, Ireland +35 3162 24493FSA RecognisedAbsolute Return Bond B GBP Acc £ 10.35 - 0.00 -

High Yield Global Bond A GBP Inc £ 5.39 - 0.01 5.20

High Yield Global Bond B GBP Inc £ 11.22 - 0.01 5.72

Investment Grade Global Bd A GBP Inc £ 5.46 - -0.01 2.12

Strategic Global Bond A GBP Inc £ 10.75 - 0.00 1.47

Strategic Global Bond B GBP Inc £ 6.09 - 0.00 1.98

Key Asset ManagementOther International FundsKey Hedge (Est) $ 411.09 - 1.09 0.00

Key Europe Inc (Est) € 175.38 - 0.18 0.00

Key Recovery (Est) $ 172.88 - 0.02 0.00

Key Global Inc (Est) $ 570.54 - 1.68 0.00

Kleinwort Benson Bank (UK)14 St. George Street, Mayfair, London W1S1FEDealing: 08459 220044, Enquiries: 0845 3002110Authorised Inv FundsUnit Trust Manager/ACD - Capita Financial ManagerCapital Growth A Acc 151.14 - -0.06 1.08

Capital Growth A Inc 147.63 - -0.07 1.09

Capital Growth B Acc 149.10 - -0.07 0.48

Capital Growth B Inc 146.82 - -0.06 0.47

Capital Growth C Acc 153.11 - -0.07 1.52

Capital Growth C Inc 148.00 - -0.06 1.52

The Newgate Trust Inc 162.32 176.48 -0.26 1.51

The Newgate Trust Acc 183.69 199.71 -0.29 1.51

Enterprise Equity Income Inc 95.94 - 0.35 4.01

Enterprise Equity Income Acc 126.82 - 0.46 3.91

Endeavour Multi-Asset Balanced Fund A Acc 120.54 - -0.12 1.00

Endeavour Multi-Asset Balanced Fund A Inc 116.07 - -0.11 1.00

Endeavour Multi-Asset Balanced Fund B Acc 115.53 - -0.11 1.00

Endeavour Multi-Asset Conservative Fund A Acc 112.61 - -0.07 0.83

Endeavour Multi-Asset Conservative Fund A Inc 102.29 - -0.06 0.84

Enterprise Fixed Income Net Acc A 115.84 - -0.63 2.21

Enterprise Fixed Income Net Inc A 110.98 - -0.60 2.21

Kleinwort Benson (Channel Islands) Investment Management Limited (JER)RegulatedKleinwort Benson Global Funds LimitedBond & Equity £ 4.66 - 0.06 4.33

Kleinwort Benson (CI) Fund Services Ltd (GSY)RegulatedKleinwort Benson Elite PCC LtdElite Multi-Asset Balanced USD Fund A Income Shares $ 1.06 - 0.00 0.00

Elite Multi-Asset Balanced USD Fund B Shares (Susp) $ 1.03 1.03 0.14 -

EUR Currency B EUR Accumulating Non-Rpt € 1.00 - 0.00 -

EUR Fixed Income B EUR Income Rpt € 1.01 - 0.00 -

GBP Currency B GBP Accumulating Non-Rpt £ 1.00 - 0.00 -

International Bond B GBP Accumulating Non-Rpt £ 0.97 - 0.01 -

International Equity B GBP Accumulating Non-Rpt £ 1.05 - 0.02 -

Multi Asset Balanced A GBP Income Rpt £ 1.32 - 0.01 0.00

Multi Asset Balanced A GBP Reinvest Rpt £ 1.32 - 0.01 0.00

Multi Asset Balanced B GBP Income Rpt £ 1.28 - 0.01 0.00

Multi Asset Balanced B EUR Accumulating Non-Rpt € 1.02 - 0.01 -

Multi Asset Balanced B GBP Accumulating Non-Rpt £ 1.02 - 0.01 -

Multi Asset Balanced B USD Accumulating Non-Rpt $ 1.02 - 0.01 -

Multi Asset Balanced C GBP Income Ppt £ 1.35 - 0.01 0.00

Multi Asset Conservative A GBP Income Rpt £ 1.06 - 0.00 0.00

Multi Asset Conservative A GBP Reinvest Rpt £ 1.06 - 0.00 1.46

Fund Bid Offer D+/- Yield

Multi Asset Conservative B EUR Accumulating Non-Rpt € 1.00 - 0.00 -

Multi Asset Conservative B GBP Accumulating Non-Rpt £ 1.01 - 0.00 -

Multi Asset Conservative B GBP Income Rpt £ 1.03 - 0.00 1.50

Multi Asset Conservative B USD Accumulating Non-Rpt $ 1.01 - 0.00 -

Multi Asset Conservative C GBP Income Rpt £ 1.07 - 0.00 0.00

Multi Asset Growth A GBP Reinvest Rpt £ 1.11 - 0.01 0.00

Multi Asset Growth A GBP Income Rpt £ 1.11 - 0.01 0.00

Multi Asset Growth B EUR Accumulating Non-Rpt € 1.02 - 0.01 -

Multi Asset Growth B GBP Accumulating Non-Rpt £ 1.03 - 0.01 -

Multi Asset Growth B GBP Income Rpt £ 1.03 - 0.01 -

Multi Asset Growth B USD Accumulating Non-Rpt $ 1.02 - 0.01 -

Sterling Fixed Income A GBP Income Rpt £ 11.51 - 0.02 3.40

Sterling Fixed Income B GBP Income Rpt £ 1.00 - 0.00 -

USD Currency B USD Accumulating Non-Rpt $ 1.00 - 0.00 -

Lazard Fund Managers Ltd (1200)F (UK)Mellon House Ingrave Rd Brentwood Essex CM15 8TGDealing: 0870 6066408, Info: 0870 6066459Authorised Inv FundsLazard Investment Funds (OEIC) Retail Share ClassDeveloping Markets Acc 91.71 - -0.65 0.44

Developing Markets Inc 91.03 - -0.65 0.47

Emerging Markets Acc 266.60 - -1.25 1.64

Emg Mkts Inc 243.13 - -1.14 1.67

European Alpha Acc 503.57 - 2.78 1.58

European Alpha Inc 473.43 - 2.61 1.57

European Smaller Cos Acc 268.41 - 0.64 0.93

Global Equity Income Acc 120.25 - 0.02 4.68

Global Equity Income Inc 93.04 - 0.01 4.82

Managed Bal Inc 118.31 - -0.07 2.36

UK Alpha Acc 162.79 - -0.06 2.13

UK Alpha Inc 147.47 - -0.05 2.18

UK Income Acc 913.60 - 0.59 4.60

UK Income Inc 503.12 - 0.33 4.71

UK Omega Acc 159.48 - -0.04 0.17

UK Omega Inc 151.83 - -0.04 0.82

UK Smaller Cos Inc 1247.80 - 4.38 1.13Lazard Investment Funds (OEIC) Institutional Share ClassSterling Corporate Bond 82.01 - -0.18 5.09

Legg Mason Dublin Funds (IRL)Rochestown, Drinagh, Wexford, IrelandFSA RecognisedLegg Mason Global Funds PLCEquity FundsBFM Asia Pacific Equity A dis(A) $ 214.84 - 2.00 0.60

BMF Emerging Markets Eq Pr dis(A) $ 91.51 - 0.63 0.74

BFM European Equity A dis(A) € 123.48 - -0.19 1.77

BFM Intl Large Cap A dis(A) $ 69.47 - 0.74 1.62

BW Global Opp.Fixed Inc A dis (M) $ 122.93 - 0.74 2.16

CBA US Aggressive Growth A dis(A) $ 113.32 - 0.46 0.00

CBA US Appreciation A dis(A) $ 114.14 - 0.71 0.00

CBA US Fundamental Value A dis(A) $ 93.24 - 0.77 0.00

CBA US Large Cap Growth A dis(A) $ 118.68 - 0.84 0.00

LM Batterymarch Gbl Equity Fd $ 108.60 - 1.24 0.26

GC Global Equity A dis(A) $ 95.19 - 1.09 0.20

LM CM Growth A dis(A) $ 88.32 - 0.55 0.00

LM CM Opportunity A dis(A) $ 206.01 - 1.45 0.00

LM CM Value A dis(A) $ 122.25 - 1.26 0.00

LM Permal Gl Absolute A dis(A) $ 103.16 - 0.18 0.00

LMHK China Fund A dis $ 105.22 - 1.11 0.37

PCM US Equity A cap $ 102.00 - 0.33 -

Royce Europ. Smaller Companies A acc € 130.56 - -0.07 0.84

Royce Global Smaller Companies A dis $ 126.93 - 1.21 0.00

Royce Smaller Companies A dis(A) $ 196.38 - 0.39 0.00

Royce US Small Cap Opp A dis(A) $ 329.50 - 1.10 0.00Fixed Income FundsBW Global Fixed Inc A dis(S) $ 138.25 - 0.66 1.10

WA Asian Opportunities A dis(D) $ 126.67 - 0.29 2.39

WA Brazil Equity A dis(A) $ 78.30 - 0.37 2.69

WA Div Strategic Income A dis(D) $ 95.38 - -0.04 2.85

WA Emerging Markets Bd A dis(D) $ 128.92 - -0.06 4.07

WA Euro Core Plus Bd A dis(D) € 94.59 - -0.08 1.34

WA Euro High Yield A dis (D) € 102.83 - 0.08 6.61

WA Gl Blue Chip Bd A dis(M) $ 109.60 - -0.06 1.81

WA Gl Core Plus Bd A dis(D) $ 109.62 - -0.05 1.68

WA Gl Credit Abs Ret Fd A dis $ 103.74 - -0.02 0.00

WA Gl Credit Cl.A dis (D) $ 108.03 - -0.18 2.10

WA Global High Yield A dis(D) $ 88.72 - 0.11 5.93

WA Global Inf-Linked A dis(D) $ 109.17 - 1.05 2.57

WA Gl Multi Strategy A dis(D) $ 128.40 - 0.13 3.26

WA Inflation Mgmt A dis(A) $ 120.15 - -0.16 1.44

WA UK£ Core Plus Bond A dis (D) £ 108.91 - -0.51 1.98

WA UK£ Infl-Linked Plus A dis (D) £ 120.19 - 5.09 1.09

WA UK£ Long Duration A dis (D) £ 111.90 - -0.75 2.08

WA US Adjustable Rate A cap $ 100.30 - 0.04 0.00

WA US Core Bond A dis(D) $ 100.49 - -0.11 1.67

WA US Core Plus Bond A dis(D) $ 111.95 - -0.11 1.72

WA US High Yield A dis(D) $ 87.47 - 0.10 6.00

WA US Short Term Govt A dis(D) $ 101.03 - -0.02 1.01Money Market FundsWA US Money Market A dis(D) $ 1.00 - 0.00 0.03

Legg Mason Luxembourg Funds (LUX)145 Rue du Kiem, L-8030 StrassenFSA RecognisedOther classes available: Class C, Class IEquity FundsLM Emerg. Markets Eq A Ord $ 317.87 - 0.84 0.00

Fund Bid Offer D+/- Yield

LM Eurold Eq.A Euro Cap € 104.97 - -0.42 0.00Money FundsLM Eurold Cash A Euro Cap € 136.02 - 0.00 0.00Asset Allocation FundsLM M-Man.Bal A Cap Euro € 131.33 - -0.19 0.00

LM M-Man.Bal A Cap USD $ 125.09 - 0.37 0.00

LM M-Man Cons A Cap Euro € 127.51 - -0.03 0.00

LM M-Man Cons A Cap USD $ 128.01 - 0.17 0.00

LM M-Man Perf A Cap Euro € 134.26 - -0.24 0.00

LM M-Man Perf A Cap USD $ 124.93 - 0.50 0.00

Legg Mason UK Funds (1200)F (UK)PO Box 10649, Chelmsford, CM99 2BDDealing & Enquiries: 0844 620 0013www.leggmason.co.ukAuthorised Inv FundsEquity FundsAsia Pacific A Acc 229.50 - -1.70 0.60

Cont. European Eq. A Acc 205.60 - 1.10 1.79

Global Eq. Income A Acc 126.20 - 0.40 4.30

Global Eq. Income A Inc 105.80 - 0.40 4.48

Income Optimiser Fd A Inc 112.90 - 0.20 5.73

Japan Equity A Acc 160.20 - -0.40 0.00

UK Equity A Acc 228.70 - 0.00 2.27

US Equity A Acc 109.20 - 0.70 0.00

US Equity Income A Inc 113.30 - 0.20 3.19

US Smaller Comp. A Acc 209.40 - -0.20 0.00

US Smaller Comp. A Acc (Hdg) 104.00 - 0.20 -Fixed Income FundsGlob.Blue Chip Bd A Inc 90.73 - -0.05 2.87

Glob.Multi Strategy Bd A Inc 104.00 - -0.10 4.71

Leumi Global Managers Fund (LUX)RegulatedLGM Equity USD $ 131.49 - 0.97 0.00

LGM Equity EUR € 121.18 - 0.61 0.00

LGM Equity P USD $ 92.15 - 0.68 0.00

LGM Conservative 80/20 USD $ 147.09 - 0.18 0.00

LGM Conservative 80/20 Euro € 138.61 - -0.30 0.00

LGM Conservative 80/20 Global $ 147.15 - 0.52 0.00

LGM Dynamic Equity Sub-Fund $ 136.95 - 0.85 0.00

LGM Dynamic Fixed Income $ 188.57 - 0.22 0.00

LGM European Equity € 78.85 - -0.21 0.00

Liongate Capital Management (CYM)www.liongate.comRegulatedLiongate Multi-Strategy FundClass A1 $ 1741.18 - -14.40 -

Class B1 € 1687.87 - -14.47 0.00

Class C1 £ 1761.91 - -14.53 -

Class D1 ¥ 118376.21 - -1088.57 0.00

Class E1 SFr 1561.85 - -13.70 0.00

Class F1 SKr 956.26 - -7.07 0.00Liongate Commodities FundClass A $ 1067.51 - -19.64 -

Class B € 1031.00 - -19.27 0.00

Class C £ 995.42 - -18.31 0.00

Lloyd George ManagementOther International FundsLG Antenna Fd Ltd $ 62.40 - - 0.00

LG Asian Plus Ltd $ 59.99 - 0.10 0.00

LG Asian Smaller Cos $ 112.60 - 0.17 0.00

LG India Fd Ltd $ 55.34 - 0.14 0.00

Lloyds TSB Offshore Fd Mgrs (1000)F (JER)PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555FSA RecognisedLloydstrust Gilt £ 12.2000 - -0.0300 2.81Lloyds TSB Offshore Funds LtdCapital Growth £ 1.8900 - -0.0010 1.01

Euro High Income € 1.6570 - 0.0000 4.16

European £ 6.9140 - 0.0310 0.76

High Income £ 0.8898 - 0.0006 5.24

International £ 3.5990 - -0.0050 0.02

North American £ 11.6900 - -0.0200 0.00

Sterling Bond £ 1.4560 - 0.0010 3.82

UK £ 6.4930 - 0.0030 1.81Lloyds TSB Offshore Gilt Fund LtdLloyds TSB Gilt Fund Quarterly Share £ 1.2600 - -0.0030 2.56

Monthly Share £ 1.2170 - -0.0030 2.56Lloyds TSB Money Fund LtdAustralian Dollar A$ 167.8670 - 0.0090 1.94

Euro € 52.9620 - -0.0010 -0.35

New Zealand Dollar NZ$ 201.8540 - 0.0080 1.35

Sterling Class £ 52.4160 - 0.0000 0.10

US Dollar Class $ 60.8030 - -0.0010 -0.16Lloyds TSB Offshore Multi Strategy Fund LtdConservative Strategy £ 1.0780 - -0.0010 2.89

Growth Strategy £ 1.3130 - 0.0010 1.37

Aggressive Strategy £ 1.4250 - 0.0020 0.38

Global USD Growth Strategy $ 1.1310 - 0.0090 0.00Dealing Daily

Lloyds TSB Bank plc Luxembourg (LUX)40, av. Monterey, L-2163 Luxembourg 00 352 4022121FSA RecognisedLloyds TSB International PortfolioLIP Asia Multi-Asset Dyn.Strat. $ 179.17 - 1.13 0.00

LIP Asia Multi-Asset Dyn.Strat.Inc $ 108.62 - 0.69 0.00

LIP GBP Bond £ 413.95 - -2.34 0.00

LIP USD Bond $ 318.31 - -0.31 0.00

LIP EUR Bond € 341.57 - 0.40 0.00

LIP Euro Corp Bd F € 114.60 - -0.19 0.00

LIP Euro Equity F € 247.07 - -0.61 0.00

LIP Eastern Europe & Frontier Equity € 181.61 - -1.08 0.00

LIP Global Alt.Fd GBP Inc F £ 93.20 - 0.51 0.00

LIP Global Alt.Fd USD Acc F $ 92.88 - 0.49 0.00

LIP G.M.A Cons.Strat.Fd Acc F £ 105.23 - 0.02 0.00

LIP G.M.A Cons.Strat.Fd Inc F £ 102.86 - 0.02 0.00

LIP G.M.A Dyn.Strat.Fd Acc F £ 113.02 - 0.20 0.00

Fund Bid Offer D+/- Yield

LIP G.M.A Dyn.Strat.Fd Inc F £ 114.43 - 0.20 0.00

LIP G.M.A Moder.Strat.Fd Acc F £ 109.02 - 0.10 0.00

LIP G.M.A Moder.Strat.Fd Inc £ 106.86 109.00 0.11 0.00

LIP Lat Amer Eq $ 411.41 - 2.04 0.00

LIP North Amer Eq $ 259.80 - 1.71 0.00

LIP Swiss Eq SFr 162.63 - 0.18 0.00

LIP UK Equity £ 217.51 - -0.10 0.00

LIP World Equity $ 261.22 - 1.26 0.00

Lloyds TSB International Liquidity (LUX)RegulatedLIL (Euro) € 207.79 - 0.00 0.00

LIL (Sterling) £ 332.67 - 0.01 0.00

LIL (Swiss Franc) SFr 159.25 - 0.00 0.00

LIL (US Dollar) $ 225.99 - 0.01 0.00Lloyds TSB Global Multifund AllocationRegulatedLGMA - (Euro) Conservative € 121.25 - 0.09 0.00

LGMA - (US Dollar) Conservative $ 127.62 - 0.26 0.00

LGMA - (Euro) Very Dynamic € 116.42 - -0.03 0.00

LGMA - (US Dollar) Very Dynamic $ 119.36 - 0.84 0.00

LGMA - (Euro) Moderate € 118.46 - 0.02 0.00

LGMA - (US Dollar) Moderate $ 131.27 - 0.59 0.00

Lombard Odier Darier Hentsch (LUX)Queensberry House 3 Old Burlington Street London W1S 3ABFSA RecognisedLombard Odier Funds1798 Europe Eq. L/S CHF C A SFr 9.99 - -0.04 0.00

1798 Europe Eq. L/S EUR C A € 10.08 - -0.04 0.00

1798 Europe Eq. L/S USD C A $ 10.05 - -0.04 0.00

1798 Optimum Trend (EUR) P A € 11.68 - 0.00 0.00

1798 Optimum Trend (USD) P A $ 11.25 - 0.00 0.00

All Roads (CHF) PA SFr 16.78 - -0.03 -

All Roads (USD) PA $ 10.51 - -0.02 -

All Roads (GBP) PA £ 10.66 - -0.02 -

All Roads (EUR) PA € 10.68 - -0.02 -

Alpha Japan (EUR) P A F € 7.23 - 0.08 0.00

Alpha Japan (CHF) P A F SFr 9.13 - 0.10 0.00

Alpha Japan (JPY) P A F ¥ 839.00 - 9.00 0.00

Alpha Japan (USD) P A F $ 10.34 - 0.12 0.00

Alternative Beta P A F SFr 116.09 - 0.27 0.00

Alternative Beta P A F € 77.52 - 0.19 0.00

Alternative Beta P A F $ 115.29 - 0.28 0.00

Commodities (CHF) P A SFr 8.34 - 0.05 0.00

Commodities (EUR) P A € 8.41 - 0.03 0.00

Commodities (USD) P A $ 8.52 - 0.05 0.00

Convertible Bd P A € 14.73 - 0.01 0.00

Convertible Bd Asia P A F SFr 13.60 - 0.01 0.00

Convertible Bd Asia P A F € 14.37 - 0.01 0.00

Convertible Bd Asia P A F $ 14.38 - 0.01 0.00

Emerging Consumer (CHF) P A SFr 12.43 - -0.02 0.00

Emerging Consumer (EUR) P A € 12.56 - -0.03 0.00

Emerging Consumer (USD) P A $ 12.52 - 0.02 0.00

Emerging Eq.Risk Par.(EUR) € 8.77 - -0.11 0.00

Emerging Eq. Risk Par.(USD) $ 8.10 - 0.00 0.00

Emerging Loc.Cur.&Bds DH (CHF) P ASFr 9.61 - -0.03 0.00

Emerging Mkt.Bd.Fdt PA $ 24.04 - -0.02 0.00

Emerg.Loc.Cur.Bd.Fdt PA SFr 10.55 - -0.07 0.00

Emerg.Loc.Cur.Bd.Fdt PA € 12.55 - -0.11 0.00

Emerg.Loc.Cur.Bd.Fdt PA $ 11.52 - 0.05 0.00

Euro BBB-BB Fdt PA SFr 14.57 - -0.01 0.00

Euro BBB-BB Fdt PA € 11.37 - -0.01 0.00

Euro BBB-BB Fdt PA £ 9.97 - -0.01 0.00

Euro BBB-BB Fdt PA $ 16.14 - -0.01 0.00

Euro Credit Bd PA F € 11.90 - -0.02 0.00

Euro Government Fdt P A € 11.18 - -0.02 0.00

Euro Inflation-Lk Fdt PA € 11.65 - -0.01 0.00

Euro Resp.Corp. Fdt PA € 17.06 - -0.03 0.00

Europe High Conviction PA € 7.88 - -0.05 0.00

Eurozone Small&Mid Caps F € 37.18 - -0.15 0.00

Gbl.BBB-BB Fdmt PA € 10.05 - -0.08 -

Gbl.Gov.Fdt SH (EUR) P A € 9.85 - -0.01 -

Gbl.Gvt.Fdmt PA € 9.85 - -0.07 -

Gbl.5B Fdmt (CHF) P A SFr 9.96 - -0.06 -

Gbl.5B Fdmt SH (USD) P A $ 10.17 - 0.00 -

Generation Global (CHF) P A F SFr 9.11 - -0.07 0.00

Generation Global (EUR) P A F € 12.41 - -0.12 0.00

Generation Global (USD) P A F $ 11.16 - 0.04 0.00

Global Energy (USD) P A F $ 10.02 - 0.06 0.00

Golden Age (CHF) P A F SFr 15.36 - 0.06 0.00

Golden Age (EUR) P A € 10.40 - 0.04 0.00

Golden Age (USD) P A F $ 14.41 - 0.06 0.00

Government Bd (USD) P A $ 20.09 - 0.00 0.00

Invst.Gde A-BBB (CHF) P A SFr 12.99 - 0.01 0.00

Japan Small & Mid Caps P A ¥ 1911.00 - 28.00 0.00

Sh.T- Money Mkt EUR P A € 112.33 - 0.00 0.00

Sh.T- Money Mkt GBP P A £ 10.22 - 0.00 0.00

Sh.T- Money Mkt USD P A $ 10.29 - 0.00 0.00

Neuberger B.US Core(USD)P A $ 10.25 - 0.07 0.00

Sands US Growth (USD) PA $ 11.96 - 0.07 -

Selective Gbl P A € 156.92 - -1.97 0.00

Tactical Alpha (CHF)P A SFr 9.96 - 0.03 0.00

Tactical Alpha (EUR)P A € 10.17 - 0.03 0.00

Tactical Alpha (USD)P A $ 14.55 - 0.05 0.00

Technology P A € 10.15 - -0.01 0.00

Technology P A $ 15.70 - 0.05 0.00

Total Return Bond (EUR) P A € 12.42 - 0.00 0.00

Total Return Bond (USD) P A $ 18.18 - 0.01 0.00

Vital Food Syst.Hdg PA SFr 10.47 - 0.01 -

Vital Food Syst.Hdg PA € 10.48 - 0.01 -

Vital Food Syst.Hdg PA $ 10.62 - 0.05 -

Fund Bid Offer D+/- Yield

William Blair Gbl Gth P A F $ 10.68 - 0.05 0.00

William Blair Gbl Gth P A F € 10.84 - -0.09 0.00

Wld Gold Expertise P A F SFr 26.02 - 0.44 0.00

Wld Gold Expertise P A € 20.35 - 0.34 0.00

Wld Gold Expertise P A $ 26.58 - 0.52 0.00Lombard Odier Funds IIBalanced (EUR) P A F € 110.75 - -0.25 0.00

Conservative (EUR) P A F € 106.46 - -0.18 0.00LO SelectionBalanced (CHF) P A F SFr 103.08 - -0.13 0.00

Balanced (EUR) P A F € 112.09 - -0.24 0.00

Conservative (CHF) P A F SFr 101.97 - -0.08 0.00

Conservative (EUR) P A F € 107.52 - -0.19 0.00

Conservative (USD) P A F $ 103.33 - 0.23 0.00

Global Allocation (GBP) P A F £ 8.90 - 0.03 0.00

Growth (CHF) P A F SFr 104.47 - -0.12 0.00

Growth (EUR) P A F € 116.11 - -0.24 0.00

Lothbury Property Trust (UK)155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900Property & Other UK Unit TrustsLothbury Property Trust GBP £ 1369.53 1469.14 -11.64 3.58

M & G Securities (1200)F (UK)PO Box 9039, Chelmsford, CM99 2XGwww.mandg.co.uk Enq: 0800 390 390, Dealing: 0800 328 3196Authorised Inv FundsCharifund Inc (z) 1234.63 1234.63 0.50 5.00

Charifund Acc (z) 14815.89 14815.89 6.01 4.83

M&G Corporate Bond A Acc 56.36 - 0.04 3.40

M&G Corporate Bond A Inc 38.03 - 0.03 3.40

M&G Dividend A Inc 55.21 - -0.06 4.15

M&G Dividend A Acc 493.33 - -0.53 4.06

M&G Episode Growth X Inc 45.52 - 0.01 2.18

M&G Extra Income A Inc 667.62 - -0.22 4.60

M&G Extra Income A Acc 4834.24 - -1.63 4.44

M&G Global Basics A Inc 645.22 - -0.80 0.28

M&G Global Basics A Acc 966.19 - -1.20 0.28

M&G Global Dividend Fund A Acc 165.16 - 0.33 3.34

M&G Global Dividend Fund A Inc 142.33 - 0.28 3.41

M&G Glbl Emrgng Mkts A Acc 223.14 - -1.47 0.54

M&G Glbl Emrgng Mkts A Inc 220.05 - -1.44 0.55

M&G High Yield Corp Bond X Inc 51.16 - 0.08 5.78

M&G High Yield Corp Bond X Acc 108.19 - 0.16 5.78

M&G Managed Growth X Inc 76.33 - -0.09 0.24

M&G Optimal Income A Inc 136.44 - 0.14 2.96

M&G Optimal Income A Acc 170.46 - 0.17 2.96

M&G Recovery GBP A Inc 121.78 - 0.13 1.13

M&G Recovery GBP A Acc 267.86 - 0.29 1.11

M&G Strategic Corp Bond A Inc 70.72 - 0.07 3.15

M&G Strategic Corp Bond A Acc 95.24 - 0.09 3.15

M&G Global Leaders GBP A Inc 161.88 - 0.39 1.75

M&G Global Leaders GBP A Acc 364.82 - 0.88 1.72

M&G UK Inflation Lnkd Corp Bnd A Acc 110.59 - -0.26 1.64

M&G UK Inflation Lnkd Corp Bnd A Inc 109.06 - -0.25 1.64

M & G Securities Ltd (UK)Property & Other UK Unit TrustsCharibond (z) 130.20 - -0.10 4.98

(Accum Units) 3302.40 - -2.00 4.98

NAACIF (z) 68.00 - 0.25 4.71

(Accum Units) 5313.75 - 3.50 4.52

M&G Property Portfolio A Acc 80.25 84.47 0.01 2.83

Property Portfolio A 72.11 75.90 0.01 2.86

Property Portfolio S 76.01 77.56 0.01 3.47

M & G (Guernsey) Ltd (GSY)RegulatedThe M&G Offshore Fund RangeAmerican Fund 115.89 120.72 0.27 0.00

Corporate Bond 1266.26 1305.42 1.00 3.45

Global Basics 2377.82 2476.90 -2.94 0.12

Global Leaders 2813.29 2930.51 6.76 1.61

High Yield Corporate Bond 1006.52 1037.65 1.57 5.87

Episode Macro Fund £ 95.77 99.76 -0.02 0.00

Optimal Income Fund 135.20 140.83 0.14 2.92

Recovery Fund Limited 'A' Participating Shares £ 105.15 109.54 0.11 0.89

Recovery Fund Limited 'I' Participating Shares £ 105.35 109.74 0.11 1.53

Strategic Corporate Bond Fund 128.34 133.69 0.13 3.21

UK Growth 1270.33 1323.26 0.60 1.54

UK Select Fund 988.35 1029.53 0.80 1.58Other International FundsM&G Property Fund - Retail £ 6.39 6.73 0.00 4.07

M&G Property Fund A Inc £ 6.39 6.39 0.00 4.61

MFS Meridian Funds SICAV (LUX)RegulatedAbsolute Return A1 € 17.46 - -0.23 0.00

Asia ex-Japan A1 $ 24.64 - 0.20 0.00

China Equity Fd A1 $ 10.15 - 0.09 0.00

Continental European Eqty A1 € 12.68 - -0.01 0.00

Emer Mkts Debt Lo Curr Fd A1 $ 15.29 - 0.09 0.00

Emerging Markets Debt A1 $ 34.01 - 0.00 0.00

Emerging Markets Eq.A1 $ 13.72 - 0.09 0.00

European Concentrated A1 € 13.22 - -0.03 0.00

European Core Eq A1 € 22.10 - -0.03 0.00

European Res.A1 € 22.71 - -0.02 0.00

European Smaller Companies A1 € 31.26 - -0.09 0.00

European Value A1 € 23.86 - -0.03 0.00

Global Bond A1 $ 11.68 - 0.05 0.00

Global Conc.A1 $ 27.49 - 0.14 0.00

FTfm

20 FINANCIAL TIMES MONDAY JANUARY 14 2013

Fund Bid Offer D+/- Yield

Global Energy Fund A1 $ 14.93 - 0.15 0.00

Global Equity A1 $ 36.01 - 0.29 0.00

Global Equity A1 € 17.25 - -0.13 0.00

Global Multi-Asset A1 $ 15.98 - 0.15 0.00

Global Res.A1 $ 21.61 - 0.19 0.00

Global Total Return A1 € 12.97 - -0.10 0.00

High Yield A1 $ 23.69 - 0.03 0.00

High Yield Fund A1 € 13.00 - -0.19 0.00

Inflation-Adjusted Bond A1 $ 15.24 - -0.04 0.00

Japan Equity A1 $ 8.19 - 0.08 0.00

Latin American Equity Fd A1 $ 22.89 - 0.16 0.00

Limited Maturity A1 $ 14.03 - 0.00 0.00

Prudent Wealth Fd A1 $ 12.20 - 0.07 0.00

Research Bond A1 $ 16.02 - -0.01 0.00

UK Equity A1 £ 6.92 - 0.02 0.00

US Conc.Growth A1 $ 11.53 - 0.07 0.00

US Government Bond A1 $ 16.79 - -0.02 0.00

Value A1 $ 16.00 - 0.14 0.00

MMIP Investment Management Limited (GSY)RegulatedMulti-Manager Investment Programmes PCC LimitedEuropean Equity Fd Cl A Initial Ser € 1740.62 1747.40 65.24 0.00

Japanese Equity Fd Cl A Initial Ser ¥ 182439.00 183516.00 6670.00 0.00

MMIP - US EQUITY CLASS A 01 June 07 Series $ 919.68 922.45 18.28 0.00

Pacific Basin Fd Cl A Initial Ser $ 2389.85 2417.75 44.72 0.00

UK Equity Fd Cl A Series 01 £ 1583.36 1599.89 21.29 0.00

Diversified Absolute Rtn Fd USD Cl AF2 $ 1497.08 - 10.74 0.00

Diversified Absolute Return Stlg Cell AF2 £ 1510.24 - 10.86 0.00

Majedie Asset Management (UK)PO Box 23543, Edinburgh, EH7 5YZ 0844 892 0974Authorised Inv FundsUK Equity A 363.41 - 1.56 3.02

UK Equity C £ 3.58 - 0.02 -

UK Equity X Acc £ 1.11 - 0.00 -

UK Equity X Inc £ 1.10 - 0.00 -

UK Focus A 402.56 - 1.76 1.52

UK Income A 119.02 - 0.32 4.54

Special Situation A 211.27 - 0.42 0.90

Tortoise Fund A 187.38 - 1.89 -

MAM Funds (UK)www.mamfundsplc.comEnquiries: 0118 338 4033Authorised FundsCF Miton Total Return Fund A Acc 113.43 - 0.00 0.00

CF Miton Distribution Fund A Inc 88.98 - 0.15 5.64

CF Miton Distribution Fund B Inc 103.96 - 0.17 -

CF Miton Distribution Fund N Inc 103.59 - 0.17 -

CF Miton Diversified Growth Fund A Acc 182.60 - 0.69 1.02

CF Miton Diversified Growth Fund B Acc 106.02 - 0.40 -

CF Miton Diversified Growth Fund N Acc 105.83 - 0.40 -

CF Miton Special Sits Pfolio A Acc 188.01 - 0.14 0.00

CF Miton Strategic Pfolio A 284.43 - -0.46 0.00

CF Miton UK Multi Cap Income Fund A Acc 128.31 - 0.57 6.16

CF Miton UK Multi Cap Income Fund A Inc 120.22 - 0.53 6.43

CF Miton UK Multi Cap Income Fund N Inc 121.61 - 0.54 -

CF Miton UK Multi Cap Income Fund N Acc 124.24 - 0.55 -

CF Miton UK Smaller Companies A Acc 105.97 - 0.31 -

CF Miton UK Smaller Companies A Inc 105.97 - 0.31 -

CF Miton UK Smaller Companies N Acc 105.98 - 0.31 -

CF Miton UK Smaller Companies N Inc 105.97 - 0.31 -

CF Miton Worldwide Opportunities Fund A Acc 222.93 - 0.31 0.00

MAM Funds (IRL)RegulatedMiton Global Diversified Income A 104.24 - 0.08 -

Man InvestmentsOther International FundsMan AHL Alpha USD Shares $ 790.54 - 3.26 0.00

Man AHL Diversified Plc $ 91.58 - 0.53 0.00

Manek Investment Mgmt Ltd (1000)F (UK)P.O.Box 100, Swindon SN1 1WR 0844 800 9401Authorised Inv FundsGrowth Fd Acc 64.63 68.61 -0.35 0.00

Mangart Global Fund Ltd (CYM)RegulatedB Shares EUR Nav (Final) € 159.09 - 7.62 0.00

B Shares USD Nav (Final) $ 159.09 - 6.05 0.00

Manulife Global Fund (LUX)31 Z.A. Bourmicht, L-8070 Bertrange, Luxembourgwww.manulife.com.hkFSA RecognisedAmerican Growth Fund A $ 21.22 - 0.01 0.00

Asia Total Return Fund (Class AA) F $ 1.03 - 0.00 2.84

Asia Value Dividend Equity Fund AA F $ 1.46 - 0.00 0.99

American Growth Fund AA F $ 1.21 - 0.00 0.00

Asian Equity Fund A $ 2.91 - -0.01 0.36

Asian Equity Fund AA F $ 0.94 - 0.00 0.37

Asian Small Cap Equity Fund AA F $ 1.96 - 0.00 0.53

China Value Fund A $ 7.57 - -0.06 0.71

China Value Fund AA F $ 2.37 - -0.02 0.47

Dragon Growth Fund A $ 1.66 - -0.01 1.34

Dragon Growth Fund AA F HK$ 8.06 - -0.07 0.99

Emerging Eastern Europe Fund AA F $ 2.05 - 0.00 1.38

Emerging Eastern Europe Fund A $ 4.78 - -0.01 1.68

Emerging Markets Infrastructure Fund Class AA $ 1.02 - 0.00 -

European Growth Fund A $ 9.69 - 0.01 0.89

European Growth Fund AA F $ 0.69 - 0.00 0.55

Global Contrarian Fund AA F $ 0.91 - 0.00 0.00

Global Property Fund AA F $ 0.94 - 0.00 0.62

Global Resources Fund AA F $ 1.04 - 0.00 0.00

Healthcare Fund AA F $ 1.25 - 0.00 0.00

India Equity Fund AA F $ 1.05 - 0.00 0.00

International Growth Fund A $ 3.54 - 0.00 0.04

Fund Bid Offer D+/- Yield

International Growth Fund AA F $ 0.82 - 0.00 0.00

Japanese Growth Fund A $ 2.70 - 0.00 0.18

Japanese Growth Fund AA F $ 0.69 - 0.00 0.00

Latin America Equity Fund AA F $ 1.27 - 0.00 0.96

Russia Equity Fund AA F $ 0.66 - 0.00 0.59

Strategic Income AA F $ 1.15 - 0.00 3.41

Taiwan Equity Fund AA F $ 1.37 - 0.00 0.33

Turkey Equity Fund AA F $ 1.10 - 0.00 0.00

US Bond Fund AA F $ 1.27 - 0.00 2.39

U.S. Special Opportunities Fund AA F $ 0.95 - 0.00 4.72

US Small Cap Equity Fund AA F $ 0.97 - 0.00 0.00

US Treasury Inflation-Protected Securities Fund AA F $ 1.39 - 0.00 0.79

Marlborough Fd Managers Ltd (1200)F (UK)Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500www.marlboroughfunds.comAuthorised Inv FundsBalanced 133.10 141.04 0.50 0.00

Bond Income 50.02 52.93 0.00 4.68

Cash 50.22 - 0.00 1.57

Cautious Inc 74.30 78.19 0.20 1.48

Emerging Markets 273.45 - -1.24 1.79

ETF Global Growth A 126.00 - -0.02 0.30

ETF Commodity A 112.01 - -0.96 0.00

Ethical A Inc 92.94 - 0.06 1.58

European 206.79 - 1.41 0.62

Extra Income 70.75 74.87 0.19 4.94

Far East Growth A Inc 173.13 - -0.83 1.05

Global 141.86 149.33 0.30 0.00

Global Bond Inc 141.33 149.56 -0.33 4.59

High Yield Fixed Interest 77.48 82.21 0.23 9.32

Multi Cap Income A Inc 112.94 - 0.55 4.17

North American 221.16 - 0.30 0.42

Special Situations A Acc 740.21 783.29 1.92 0.32

UK Income and Growth 66.46 - 0.04 3.16

UK Leading Companies A Inc 171.11 181.07 0.26 0.94

UK Micro Cap Growth A 305.94 323.75 0.98 0.00

UK Primary Opportunities A Inc 286.53 - -0.19 1.70MFM - Third Party FundsMFM Artorius Fund 100.41 - 1.36 0.05

MFM Bowland 107.03 115.71 5.52 0.27

MFM CFS Balanced Opps A Inc 89.80 - 0.34 0.16

MFM CPI Defensive Man A Inc 119.41 - 0.28 1.54

MFM CPI Global Opps A Inc 109.29 - 1.24 0.00

MFM Hathaway Inc 83.76 87.71 1.08 1.33

MFM SGWM Managed A Acc 105.86 - 0.25 0.15

MFM Slater Growth 234.90 249.23 -0.63 0.23

MFM Slater Income A Inc 115.13 - 0.46 4.76

MFM Slater Recovery 111.45 118.25 -0.08 0.43

MFM Techinvest Special Situations Acc 81.39 - 1.72 0.49

MFM Techinvest Technology Acc 245.84 - 9.27 2.44

Junior Gold C Acc 90.63 - 0.51 0.00

Junior Oils 173.13 183.21 1.51 0.00

Marlborough International Management Limited(GSY)Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520FSA RecognisedMarlborough North American Fund Ltd £ 21.67 21.89 0.52 0.00

Marlborough Tiger Fund Ltd F £ 28.89 29.18 0.14 0.00

Martin Currie Unit Trusts Ltd (1200)F (UK)Saltire Ct, 20 Castle Terrace Edinburgh Inv Ser:0808 1002125Authorised Inv FundsMartin Currie Investment Funds (OEIC)Class A (Retail)Asia Pacific 115.60 - -0.90 0.56

China 99.33 - -0.87 0.37

Emerging Mkts 230.50 - -1.20 0.37

European Equity Income A acc 276.30 - 0.80 4.52

Global Alpha 107.60 - 0.20 0.46

Global Energy 120.40 - 0.30 1.33

Global Equity Income Inc 97.72 - 0.24 5.19

Global Equity Income acc 114.70 - 0.20 5.03

Japan 112.50 - 0.30 0.72

Japan Alpha 87.61 - 0.18 0.47

Latin America 89.52 - -0.37 1.19

North American 175.60 - 0.80 0.00

European Equity Income A Inc 266.80 - 0.90 -

Marwyn Investment Management LLP (CYM)RegulatedMarwyn Value Investors £ 311.30 - -12.48 0.00

Mayfair Capital Investment Management Limited (UK)Brookfield House, 44 Davies Street, London, W1K 5JA 020 7495 1929Property & Other UK Unit TrustsProperty Income Trust for Charities 69.20 71.50 0.30 8.20

McInroy & Wood Portfolios Limited (UK)Easter Alderston, Haddington, EH41 3SF 01620 825867Authorised Inv FundsBalanced Fund Legacy Class Units 3416.60 - -10.50 2.11

Balanced Fund Personal Class Units 3416.90 - -10.20 -

Income Fund Legacy Class Units 2182.00 - -5.10 3.39

Income Fund Personal Class Units 2182.20 - -4.90 -

Emerging Markets Fund Legacy Class Units 1857.50 - 35.80 2.23

Emerging Markets Fund Personal Class Units 1857.50 - - -

Smaller Companies Fund Legacy Class Units 2722.40 - 70.30 1.93

Smaller Companies Fund Personal Class Units 2722.40 - - -

Meditor Group Limited (BMU)RegulatedEuropean Hedge Fd (B) (Est) $ 544.82 - 2.69 0.00

European Hedge Fd (C) (Est) $ 276.91 - 1.39 0.00

Melchior Hedge Funds (CYM)RegulatedMelchior European Fund Ltd EUR Class € 148.24 - -2.41 -

Meridian Fund Managers LtdOther International FundsGlobal Gold & Resources Fund $ 401.96 - -27.30 -

Fund Bid Offer D+/- Yield

Global Energy & Resources Fund $ 90.86 - -6.61 -

Metage CapitalOther International FundsMGS (Est) $ 197.34 - -1.33 -

MEMO (Est) $ 480.41 - 14.17 0.00

MEMV (Est) $ 112.42 - 3.37 0.00

Emerging Markets Managed Accounts PLC (IRL)info@emmaplc.com,+44(0)20 8123 8369 www.emmaplc.comRegulatedMilltrust Brazil A $ 116.62 - 2.21 -

Milltrust Latin America A $ 120.96 - 3.12 -

Milltrust Value Partners Greater China A $ 116.65 - 3.12 -

Ministry of Justice Common Investment Funds (UK)Property & Other UK Unit TrustsThe Equity Idx Tracker Fd Inc 1171.00 1171.00 1.00 3.22

Distribution Units

Mirabaud & Cie (LUX)www.mirabaud.com, marketing@mirabaud.comRegulatedMirabaud FundMir. Ac. All. Bal A EUR € 101.82 - 0.19 0.00

Mir. Ac. All. Cons A EUR € 103.42 - 0.03 0.00

Mir. - Conv. Bonds A EUR € 117.05 - -0.04 0.00

Mir. - Eq Asia ex Jap A $ 171.51 - -0.85 0.00

Mir. - Eq Glb Emrg Mkt A $ 110.84 - -0.33 -

Mir. - Eq Eur exUK A Cap € 87.83 - -0.23 0.00

Mir. - Eq Global A USD $ 104.44 - 0.20 0.00

Mir. - Eq Pan Eur A Cap € 86.74 - -0.28 0.00

Mir. -Eq Spain A € 19.65 - 0.12 0.00

Mir. - Eq Swiss Sm/Mid A SFr 216.42 - 0.24 0.00

Mir. - Eq UK £ 1.77 1.86 0.00 -

Mir. - Eq US A USD $ 131.84 - 0.93 0.00

Mir. Opp. -Emerg. Mkt HO $ 103.86 - 0.00 0.00MirAlt SicavMirAlt Sicav-Diversified A Cap. $ 102.35 - 0.37 0.00

MirAlt Sicav-Europe A dis € 61.33 - 0.85 0.00

MirAlt Sicav - North America A dis $ 136.24 - 1.26 0.00

Mirabaud Gestion AM (FRA)RegulatedMirabaud Euro Actions C € 140.50 - 0.26 0.00

Mirabaud France Act. C € 150.06 - -0.11 0.00

Mirabaud Horizon C € 104.24 - 1.06 0.00

Mirabaud Sérénité C € 108.36 - 0.45 0.00

MitonOptimal Offshore (GSY)www.MitonOptimal.comRegulatedCore Diversified Fund (USD) $ 110.51 - -0.10 0.00

Core Diversified Fund (EUR) € 92.79 - -0.12 0.00

Core Diversified Fund (GBP) £ 101.30 - -0.11 0.00

Core Diversified USD E Class $ 100.03 - -0.17 -

Core Diversified GBP E Class £ 99.43 - -0.14 -

Core Diversified SGD E Class S$ 99.20 - -0.14 -

Global Real Estate Fund $ 104.90 - 0.40 0.00

International Diversified $ 99.39 - -0.33 0.00

International Beta Equity $ 105.68 - -0.26 0.00

International Equity $ 102.69 - -0.20 0.00

Managed Flexible US$ Fund $ 104.93 - 0.11 0.00

Offshore Global (GBP) £ 93.46 - 0.17 0.00

Offshore Global (USD) $ 86.42 - 0.44 0.00

Offshore Special Situations (GBP) £ 132.43 - 0.16 0.00

Offshore Special Situations (USD) $ 121.48 - 0.11 0.00

Offshore Special Situations (EUR) € 101.79 - 0.08 0.00

Offshore Special Situations (YEN) ¥ 10698.30 - 4.05 0.00

Rhodium USD $ 93.38 - -0.03 0.00

Rhodium GBP £ 90.74 - -0.07 0.00

Rhodium AUD A$ 94.91 - -0.01 0.00

Rhodium SGD S$ 89.54 - -0.08 0.00

Rhodium THB THB 917.64 - -1.38 0.00

Special Situations USD E Class $ 98.25 - 0.07 -

Special Situations GBP E Class £ 99.24 - 0.10 -

Special Situations SGD E Class S$ 97.95 - 0.07 -

Morant Wright Management Ltd (CYM)RegulatedMW Japan Fd Ltd A $ 18.22 - 0.22 0.00

MW Japan Fd Ltd B $ 18.64 - 0.23 0.00

Morgan Stanley Investment Mgmt Ltd (UK)The Morgan Stanley Funds (UK) OEICS (1200)FPO Box 6065, Basildon, Essex SS15 5WZPhone: 0800 096 1962 (Enquiries)Authorised FundsEquityEurope Ex UK Equity A Acc 1075.32 - 7.43 1.27

Global Brands A Acc 3678.91 - 7.85 0.76

Global Brands A Inc 1143.20 - 2.44 0.78Fixed IncomeSterling Corporate Bd A Inc 1399.89 - 1.26 1.97

Sterling Corporate Bd A Acc 1953.98 - 1.77 1.93

Fund Bid Offer D+/- Yield

Morgan Stanley Investment Funds (LUX)6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61www.morganstanleyinvestmentfunds.comFSA RecognisedUS Advantage A F $ 38.06 - 0.12 0.00

Absolute Return Currency A F € 22.91 - -0.14 0.00

Asian Equity A F $ 43.96 - 0.18 0.00

Asian Property A F $ 19.52 - 0.17 0.00

Asian Property AX F £ 11.43 - 0.04 1.09

Diversified Alpha Plus A F € 29.40 - 0.12 0.00

Emerg Europ, Mid-East & Africa Eq A F € 60.92 - -0.56 0.00

Emerging Markets Debt A F $ 82.62 - -0.05 0.00

Emerging Markets Domestic Debt AX F £ 16.29 - -0.02 5.30

Emerging Markets Equity A F $ 39.46 - 0.10 0.00

Euro Bond A F € 14.04 - -0.01 0.00

Euro Corporate Bond AX F £ 23.38 - 0.11 4.56

Euro Liquidity A F € 12.89 - 0.00 0.00

Euro Strategic Bond A F € 38.50 - -0.04 0.00

European Currencies High Yield Bd A F € 18.88 - -0.09 0.00

European Equity Alpha A F € 33.64 - 0.05 0.00

European Property A F € 22.55 - -0.10 0.00

Eurozone Equity Alpha A F € 8.35 - 0.05 0.00

Global Bond A F $ 40.31 - 0.08 0.00

Global Brands A F $ 77.26 - 0.33 0.00

Global Convertible Bond A F $ 36.71 - 0.05 0.00

Global Property A F $ 24.79 - 0.15 0.00

Indian Equity A F $ 26.96 - 0.11 0.00

Latin American Equity A F $ 71.33 - 0.39 0.00

Short Maturity Euro Bond A F € 20.11 - 0.02 0.00

US Dollar Liquidity A F $ 13.03 - 0.00 0.00

US Growth A F $ 42.43 - 0.29 0.00

US Growth AH F € 29.51 - 0.20 0.00

US Growth AX F £ 26.37 - 0.05 0.00

US Property A F $ 54.62 - 0.11 0.00

Morgens Waterfall Vintiadis.co IncOther International FundsPhaeton Intl (BVI) Ltd (Est) $ 380.04 - -4.95 0.00

Natixis International Funds (Lux) I SICAV (LUX)Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000FSA RecognisedAbsolute Asia AM Pac Rim Eq Fd IA $ 100.71 100.71 -0.68 0.00

ASG Laser Fund I/A (USD) H $ 1168.62 1168.62 1.26 0.00

Harris Associates Global Value Fund H € 176.10 176.10 -0.76 0.00

Harris Associates US Large Cap Value Fund $ 165.27 165.27 1.09 0.00

Loomis Sayles Emerging Debt & Currencies Fund IA $ 166.07 166.07 0.69 0.00

Loomis Sayles Global Credit Fund I/A (USD) H $ 145.37 145.37 0.34 0.00

Loomis Sayles US Large Cap Value $ 101.60 101.60 -0.23 0.00

Vaughan Nelson US Small Cap Val Fund IA $ 205.06 205.06 -0.03 0.00

Natixis International Funds (Dublin) I plc (IRL)Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000RegulatedLoomis Sayles Global Opportunist Bond Fund H-S/D GBP £ 10.32 10.32 0.01 5.42

Loomis Sayles Multisector Inc Fd I USD $ 13.50 13.50 0.05 5.57

Loomis Sayles Inst High Inc Fd I USD $ 8.19 8.19 0.02 9.73

Loomis Sayles Global Opportunist Bond Fd I USD $ 14.01 14.01 0.04 5.90

NatWest (2230)F (UK)PO Box 23873, Edinburgh EH7 5WJ**Enquiries: 0800 085 5588Authorised Inv FundsSeries 1(Minimum initial investment 16375,000)United Kingdom Equity Index Fund £ 11.53 - 0.01 2.89

UK Specialist Equity Inc £ 15.69 - 0.05 0.41

Contl Europe Spec Equity £ 12.69 - 0.10 0.00

US Spec Equity Fund £ 9.66 - 0.00 0.00

Japan Specialist Fund £ 7.04 - 0.03 0.01

Pacific Basin Specialist Equity Fund £ 22.06 - -0.13 0.64

UK Sovereign Bd Index Fund £ 10.54 - -0.06 3.52

UK Specialist Equity Income Fund £ 8.53 - 0.03 3.86

Global Spec Inv Grade Bd Fund GBP £ 11.01 - 0.02 2.94

Inflation Lkd Sov Bd Fund £ 11.54 - 0.50 1.23

Global Emerg Mkts Equity Fund £ 12.41 - -0.05 1.14Series 2 (Investment Management customers only)United Kingdom Equity Index Fund £ 11.53 - 0.01 3.24

UK Specialist Equity Inc £ 15.80 - 0.06 1.53

Contl Europe Spec Equity £ 13.08 - 0.11 0.96

US Spec Equity Fund £ 9.85 - 0.00 0.36

Japan Specialist Fund £ 7.32 - 0.03 0.95

Pacific Basin Specialist Equity Fund £ 21.84 - -0.13 1.34

UK Sovereign Bd Index Fund £ 10.64 - -0.05 3.52

UK Specialist Equity Income Fund £ 8.86 - 0.03 3.82

Global Spec Inv Grade Bd Fund GBP £ 11.02 - 0.02 2.94

Inflation Lkd Sov Bd Fund £ 11.64 - 0.50 1.23

Global Emerg Mkts Equity Fund £ 11.91 - -0.05 1.64The initial charge you will pay will depend on the amount you invest

**Address and Telephone number for series 1 only

Natwest (IRL)Guild Hse PO Box 4935 Guild St, IFSC, Dublin 100353 1 642 8400FSA RecognisedSeries 10Absolute Rtn Multi Asset Prog SER 10 GBP F £ 9.87 - 0.01 0.00

Neptune Investment Mgmt (1200)F (UK)Dealing: 0800 587 5051 PO Box 9004, Chelmsford, Essex, CM99 2WRAuthorised Inv FundsAfrica Fund A Acc 116.50 - -1.50 0.93

Africa Fund B Acc 117.70 - -1.50 1.25

Balanced Acc 486.40 513.30 0.90 0.78

Balanced Inc 439.50 463.80 0.80 0.77

Balanced B Acc 103.50 109.10 0.20 -

Balanced B inc 103.00 108.70 0.20 -

Fund Bid Offer D+/- Yield

Cautious Managed A Acc 107.40 - 0.10 2.21

Cautious Managed A Inc 99.74 - 0.05 2.26

Cautious Managed B Acc 107.50 - 0.00 2.21

Cautious Managed B Inc 104.20 - 0.10 2.21

China A Acc 285.40 - -2.30 0.47

China B Acc 294.20 - -2.40 0.71

China Max Alpha B Acc 121.40 - -1.20 0.00

Defensive Managed B Acc 99.35 - -0.04 -

Defensive Managed B Inc 101.30 - -0.10 -

Emerging Markets A Acc 161.90 - -1.40 0.22

Emerging Markets A Inc 158.30 - -1.40 0.06

Emerging Markets B Acc 163.30 - -1.40 0.56

Emerging Markets B Inc 155.90 - -1.30 0.00

European Income A Acc 106.40 - 0.50 2.68

European Income A Inc 95.07 - 0.50 2.76

European Income B Acc 106.20 - 0.50 2.70

European Income B Inc 99.72 - 0.53 2.71

European Lg/Sh. Sector A Acc 105.30 - 0.60 -

European Lg/Sh. Sector B Acc 105.10 - 0.60 -

European Max Alpha A Acc 109.10 - 0.40 0.80

European Max Alpha B Acc 109.70 - 0.40 0.71

European Opps A Acc 363.10 - 2.30 1.10

European Opps A Inc 330.30 - 2.00 1.09

European Opps B Acc 378.80 - 2.30 1.32

European Opps B Inc 339.20 - 2.10 1.32

Frontier Emerg Mkts A Acc 104.90 - 0.30 -

Frontier Emerg Mkts A Inc 104.90 - 0.30 -

Frontier Emerg Mkts B Acc 104.60 - 0.30 -

Frontier Emerg Mkts B Inc 104.90 - 0.30 -

Global Alpha A Acc 267.90 - 1.30 0.00

Global Alpha B Acc 285.70 - 1.40 0.80

Global Equity A Acc 270.40 - 1.20 0.20

Global Equity A Inc 87.95 - 0.39 0.21

Global Equity B Acc 285.80 - 1.30 0.70

Global Equity B Inc 87.82 - 0.40 0.26

Global Income Fund A Acc 102.40 - 0.20 -

Global Income Fund A Inc 102.40 - 0.20 -

Global Income Fund B Acc 102.10 - 0.20 -

Global Income Fund B Inc 102.40 - 0.20 -

Global Lg/Sh.Sector A Acc 106.10 - 0.10 0.10

Global Lg/Sh.Sector B Acc 106.70 - 0.20 0.28

Global Max Alpha A Acc 93.49 - 0.46 0.00

Global Max Alpha B Acc 92.18 - 0.45 0.00

Greater China Income A Acc 115.40 - -0.80 4.09

Greater China Income A Inc 100.40 - -0.70 4.23

Greater China Income B Acc 115.40 - -0.80 4.08

Greater China Income B Inc 99.93 - -0.67 4.22

Green Planet A Acc 59.71 - -0.22 0.00

Green Planet B Acc 59.16 - -0.22 0.00

Income A Acc 245.60 - -0.20 4.02

Income A Inc 149.00 - -0.10 4.16

Income B Acc 257.30 - -0.20 4.01

Income B Inc 154.10 - -0.10 4.14

India A Acc 119.30 - -1.20 0.00

India B Acc 122.50 - -1.20 0.00

Japan Max Alpha A Acc 115.20 - -0.80 0.00

Japan Max Alpha B Acc 115.30 - -0.80 0.00

Japan Opps A Acc 260.80 - 1.40 0.05

Japan Opps B Acc 270.00 - 1.40 0.31

Latin America A Acc 126.20 - -0.10 0.84

Latin America B Acc 129.10 - -0.10 1.07

Monthly Inc Fund A Acc 102.40 - 0.20 -

Monthly Inc Fund A Inc 102.40 - 0.20 -

Monthly Inc Fund B Acc 102.40 - 0.20 -

Monthly Inc Fund B Inc 102.40 - 0.20 -

Quarterly Income A Acc 153.40 162.50 -0.10 4.00

Quarterly Income A Inc 111.30 117.80 0.00 4.10

Quarterly Income B Acc 103.70 109.90 -0.10 -

Quarterly Income B Inc 102.30 108.30 0.00 -

Russia & Greater Russia A Acc 307.20 - -0.70 0.32

Russia & Greater Russia B Acc 319.00 - -0.80 0.73

Russia Spec Situa Fund A Acc 103.70 - -0.10 -

Russia Spec Situa Fund B Acc 103.50 - -0.10 -

South-East Asia A Acc 95.51 - -0.51 0.69

South-East Asia B Acc 97.17 - -0.52 1.04

UK Equity A Acc 174.60 - 0.10 1.28

UK Equity B 182.90 - 0.10 1.48

UK Higher Inc.Fd A Acc 119.00 - -0.10 3.93

UK Higher Inc.Fd A Inc 108.00 - -0.10 4.08

UK Higher Inc.Fd B Acc 116.90 - 0.00 3.92

UK Higher Inc.Fd B Inc 110.70 - -0.10 4.06

UK Mid Cap A Acc 268.50 - 1.40 1.01

UK Mid Cap B Acc 271.20 - 1.50 1.24

UK Special Situations A Acc 139.30 - 0.40 1.00

UK Special Situations B Acc 140.40 - 0.50 1.35

US Inc.Fd A Acc 126.20 - 0.40 3.83

US Inc.Fd A Inc 116.30 - 0.40 3.88

US Inc.Fd B Acc 122.20 - 0.40 3.88

US Inc.Fd B Inc 116.50 - 0.40 3.96

US Max Alpha A Acc 181.00 - -0.50 0.00

US Max Alpha B Acc 183.20 - -0.60 0.00

US Opportunities A Acc 230.90 - 0.70 0.00

US Opportunities B Acc 241.30 - 0.70 0.33

Nevsky Capital LLP (IRL)10 Old Burlington Street W1S 3AG +44(0)20 7360 8888FSA RecognisedTraditional Funds PlcEastern European $ 86.87 - -0.02 0.00

Fund Bid Offer D+/- Yield

Nevsky Capital LLPOther International FundsNevsky Fund Plc EUR Acc € 1134.70 - -0.38 0.00

Nevsky Fund Plc GBP Acc £ 1142.01 - -0.16 0.00

Nevsky Fund Plc USD Acc $ 1151.76 - -0.06 0.00

New Capital Fund Management Ltd (IRL)Leconfield House, Curzon Street, London, W1J 5JBFSA RecognisedNew Capital UCITS FundsAsia Pacific Bond Fd USD $ 126.38 - -0.21 0.00

Asia Pacific Bond USD CNY Hedged $ 113.24 - -0.38 0.00

Asia Pacific Equity Fund USD Class A $ 112.11 - 0.37 2.32

Asia Pacific Equity Fund EUR Class B € 109.07 - 0.32 2.59

Asia Pacific Equity Fund GBP Class C £ 110.79 - 0.35 2.44

Asia Pacific Equity Fund CNY USD Hedged Class F $ 116.30 - 0.50 2.27

Asia Pacific Equity Inc SGD Class D S$ 124.54 - 0.40 1.13

Asia Pacific Equity Inc USD I Class D $ 125.06 - 0.41 1.39

Dynamic European Equity EUR Cls D € 123.11 - -0.59 1.05

Dynamic European Equity GBP Cls D £ 131.18 - -0.63 1.08

Dynamic European Equity USD Cls D $ 123.80 - -0.58 0.99

Total Return Bond USD Cls $ 160.52 - 0.18 0.00

Total Return Bond EUR Cls € 151.28 - 0.13 0.00

Total Return Bond GBP Cls £ 169.53 - 0.18 0.00

Total Return Bond Fund Canadian Dollar Class C$ 111.62 - 0.12 0.00

Total Return Bond Fund CHF SFr 115.23 - 0.10 0.00

Total Return Bond Fund INR Hdg R $ 119.13 - 1.08 0.00

Total Return Bond Fund USD $ 122.24 - 0.26 0.00

Total Return Bond Fund USD I $ 117.28 - 0.14 0.00

Total Return Bond GBP Distributor Class £ 116.90 - 0.12 4.13

US Growth Class A USD $ 124.81 - 0.90 0.00

US Growth Class B EUR € 120.33 - 0.81 0.00

US Growth Class C GBP £ 123.04 - 0.86 0.00

US Growth Class D CHF SFr 122.72 - 0.83 0.00

US Growth Class I USD $ 112.82 - 0.81 0.00

Wealthy Nations Bond USD Cls A $ 119.58 - 0.01 4.58

Wealthy Nations Bond EUR Cls B € 116.18 - -0.03 4.99

Wealthy Nations Bond GBP Cls C £ 118.64 - -0.01 4.71

Wealthy Nations Bond CHF Cls DSFr 115.05 - -0.03 2.23

Wealthy Nations Bond EUR Cls D € 115.71 - -0.04 2.00

Wealthy Nations Bond GBP Cls D £ 119.35 - -0.02 4.50

Wealthy Nations Bond CHF Cls ESFr 114.73 - -0.03 4.93

Wealthy Nations Bond INR Hdg Cls D $ 118.16 - 0.79 1.68

Wealthy Nations Bond INR Hdg I Cls D $ 117.94 - 0.75 2.24

Wealthy Nations Bond NOK Cls DNKr 118.13 - -0.01 2.13

Wealthy Nations Bond USD Cls D $ 116.76 - 0.00 1.92

Wealthy Nations Bond USD CNY Hedged Class F $ 119.10 - 0.10 4.09

Wealthy Nations Bond SGD Class G S$ 167.56 - 0.00 4.48

Wealthy Nations Bond Class H S$ 110.90 - 0.00 4.78

Wealthy Nations Bond Class I $ 116.36 - 0.11 4.12New Capital Alternative StrategiesAll Weather Fd USD Cls $ 112.45 - 0.37 -

All Weather Fd EUR Cls € 102.38 - 0.25 0.00

All Weather Fd GBP Cls £ 109.41 - 0.32 0.00

Tactical Opps USD Cls $ 113.88 - 6.69 0.00

Tactical Opps EUR Cls € 93.89 - 5.50 0.00

Tactical Opps GBP Cls £ 104.97 - 6.22 0.00

Newton Investment Management Ltd (UK)160 Queen Victoria Street London EC4V 4LA 0800 917 6594Authorised Inv FundsAcer (OEIC) 803.26 - 3.75 1.47Unit TrustsNewton Balanced Bridge 132.20 - 0.03 3.14

Newton Falcon Inc 220.05 - 0.15 0.91

Newton Falcon Acc 248.07 - 0.16 0.90

Newton Bridge 202.38 - 0.29 1.86

Newton Ilex 697.08 - 0.45 0.65

Newton Maiden 143.45 - 0.45 2.84

Newton Merlin 723.19 - 14.11 1.48

Newton Osprey 195.14 - 0.89 1.51

Newton Phoenix B Inc 130.68 - 0.15 1.98

Newton Phoenix B Acc 158.45 - 0.18 1.95

Newton Securities 164.64 - 0.20 1.18For more information on Newton Managed Funds,

please see BNY Mellon Fund Managers

Newton Investment Management Ltd (UK)160 Queen Victoria Street EC4V 4LA 0800 917 6594Property & Other UK Unit TrustsGlobal Gth & Inc Fd For Charities 131.72 - 0.35 3.68

The SRI Fund for Charities 108.55 - 0.00 2.82

Newton Fund Mgrs (CI) Ltd (1200)F (JER)PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130FSA RecognisedNewton Offshore Strategy Fund LtdUK Equity £ 1.7213 - -0.0009 2.11

Global Equity £ 1.4487 - 0.0015 1.80

Global Balanced £ 1.1718 - 0.0016 2.14

Global Balanced (Accumulation) £ 1.2962 - 0.0018 2.11

Bridge £ 1.3762 - 0.0015 2.00

Sterling Fixed Interest Class £ 0.8519 - -0.0001 4.09

Global Fixed Interest Class £ 1.0564 - -0.0001 4.47

Diversified Assets £ 1.1425 - 0.0018 2.91

FTfm

FINANCIAL TIMES MONDAY JANUARY 14 2013 21

Fund Bid Offer D+/- Yield

Nordea 1, SICAV (LUX)E-Mail: nordeafunds@nordea.lu, Phone: +352 43 39 50 0FSA RecognisedEmerging Consumer Fund F € 16.38 - -0.15 0.00

European Alpha Fund F € 8.82 - -0.10 0.00

European Value Fund € 41.26 - -0.26 0.00

Far Eastern Equity Fund $ 19.21 - -0.06 0.00

Latin American Equity Fund € 12.38 - -0.16 0.00

Nordic Equity Fund € 57.64 - -0.26 0.00

North American Growth Fund H $ 8.62 - -0.07 0.00

North American Value Fund $ 32.68 - -0.01 0.00

European High Yield Bond Fund F € 24.98 - 0.28 0.00

Global Stable Equity Fund F € 10.52 - 0.00 0.00

Heracles Long/Short MI Fund - AP - EUR F € 53.73 - 0.03 0.00

Northwest Investment Management (HK) Ltd11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373Other International FundsNorthwest $ class $ 1724.15 - -20.53 0.00

Northwest China Opps $ class $ 2279.95 - 3.06 0.00

Northwest China Opps € class € 2233.31 - 3.88 0.00

Northwest Warrant $ class $ 518.73 - 31.34 0.00

Oasis Crescent Management Company LtdOther International FundsOasis Crescent Equity Fund R 7.91 - 0.03 0.40

Oasis Global Mgmt Co (Ireland) Ltd (IRL)RegulatedOasis Global Investment (Ireland) PlcOasis Global Equity $ 21.57 - 0.19 0.66Oasis Crescent Global Investment Fund (Ireland) plcOasis Crescent Global Equity Fund $ 21.70 - 0.19 0.60

OasisCresGl Income Class A $ 11.06 - 0.02 2.57

OasisCresGl LowBal D ($) Dist $ 10.72 - 0.05 3.07

OasisCresGl Med Eq Bal A ($) Dist $ 10.39 - 0.05 -

Oasis Crescent Gbl Property Eqty $ 8.56 - 0.06 2.91

Odey Asset Management LLP (UK)Ibex House, 42-47 Minories, London, EC3N 1DXOrder Desk: 0845 300 2106, Enquiries: 0870 607 2555Authorised Corporate Director - Capita Financial ManagersAuthorised Inv FundsCF Odey Atlas Fund I Acc £ 1.08 - 0.00 -

CF Odey Atlas Fund I Inc £ 1.08 - 0.00 -

CF Odey Continental European R Acc 583.36 - 1.87 0.22

CF Odey Continental European I Acc 98.61 - 0.32 0.89

CF Odey Continental European I Inc 96.22 - 0.31 0.77

CF Odey Opus R Inc 2924.55 - -0.83 1.01

CF Odey Opus Fund I Acc £ 1.32 - 0.00 0.00

CF Odey Opus Fund I Inc £ 1.31 - 0.00 0.00

CF Odey UK Absolute Return Fund Euro Hedged € 1.25 - 0.00 -

CF Odey UK Absolute Return Fund US Dollar Hedged $ 1.14 - 0.00 -

CF Odey UK Absolute Return R 209.27 - 0.88 0.21

CF Odey UK Absolute Return I 213.25 - 0.90 0.57Odey Wealth Management (UK) LimitedCF Odey Portfolio Fund A Acc 118.33 - 0.03 0.41

CF Odey Portfolio Fund A Inc 116.98 - 0.02 0.37

CF Odey Portfolio Fund B Acc 116.72 - 0.02 0.21

CF Odey Portfolio Fund B Inc 116.49 - 0.02 0.21

Odey Asset Management LLP (CYM)RegulatedOEI MAC Inc A £ 332.98 - 9.18 0.00

OEI Mac Inc B £ 182.34 - 4.63 0.00

OEI MAC Inc USD $ 1832.95 - 45.31 0.00

Odey European Inc EUR € 723.90 - 15.52 0.00

Odey European Inc A GBP £ 275.00 - 5.95 0.00

Odey European Inc B GBP £ 156.11 - 3.37 0.00

Odey European Inc USD $ 338.09 - 7.42 0.00

Giano Capital EUR Inc € 3873.58 - -124.12 0.00

Odey Asset Management LLP (IRL)FSA RecognisedOdey OEAF EUR A Class € 107.74 - -0.32 0.00

Odey OEAF GBP D Class £ 125.63 - -0.22 0.00

Odey Pan European € 247.91 - -0.66 0.00

Odey Pan European GBP D £ 163.28 - 0.69 0.00

Odey Allegra STG A £ 103.94 - 0.19 0.00

Odey Allegra USD $ 125.38 - 1.00 0.00

Odey Allegra European EUR € 172.25 - -0.46 0.00

Odey Allegra European EUR I F € 168.50 - -0.44 0.00

Odey Allegra European USD $ 175.03 - 1.82 0.00

Odey Allegra European GBP £ 202.60 - 0.85 0.00

Odey Allegra European GBP I £ 160.68 - 0.52 -

Odey Allegra International GBP Class £ 154.60 - 0.29 0.00

Odey Allegra International GBP D Inc F £ 140.06 - 0.26 0.00

Odey Allegra International Euro Class € 120.61 - -0.61 0.00

Odey Allegra International Euro I Class € 111.04 - -0.56 0.00

Odey Investments Plc (IRL)RegulatedOdey Giano European Fund EUR € 100.42 - -0.22 0.00

Odey Giano European Fund GBP £ 99.97 - -0.23 0.00

Fund Bid Offer D+/- Yield

Odey Giano European Fund USD $ 101.18 - -0.24 -

Odey Odyssey Fund USD $ 120.02 - 1.30 0.00

Odey Odyssey Fund GBP I £ 119.67 - 1.28 0.11

Odey Odyssey Fund GBP R £ 119.00 - 1.27 0.00

Odey Odyssey Fund EUR € 107.84 - 1.12 -

Odey Wealth Management (CI) Ltd (IRL)FSA RecognisedODEY OPPORTUNITY CHF SFr 103.81 - -0.18 0.00

ODEY OPPORTUNITY CHF I SFr 104.18 - -0.18 0.00

ODEY OPPORTUNITY EUR € 121.56 - -0.21 0.00

ODEY OPPORTUNITY EUR I € 182.12 - -0.33 0.00

ODEY OPPORTUNITY GBP I R £ 201.14 - -0.35 0.00

ODEY OPPORTUNITY GBP R £ 129.29 - -0.22 0.00

ODEY OPPORTUNITY NOK NKr 110.29 - -0.23 0.00

ODEY OPPORTUNITY NOK I NKr 113.00 - -0.15 0.00

ODEY OPPORTUNITY USD $ 128.55 - -0.22 0.00

ODEY OPPORTUNITY USD I $ 191.64 - -0.33 0.00

Olympia Capital Management25 rue Balzac 75008 Paris France Tel 33 1 49 53 90 38Other International FundsOlympia Star I (EUR) € 854.29 - 1.32 0.00

Olympia Star I (USD) $ 460.68 - 0.88 0.00

Omnia Fund LtdOther International FundsEstimated NAV $ 504.70 - 21.03 -

Optima Fund ManagementOther International FundsOptima Fd NAV (Est) $ 76.97 - 0.40 0.00

Optima Discretionary Macro Fund Limited $ 82.72 - 0.30 0.00

The Dorset Energy Fd Ltd NAV (Est) $ 41.79 - -1.45 0.00

Platinum Fd Ltd $ 74.30 - 1.37 0.00

Platinum Fd Ltd EUR € 14.74 - 0.31 0.00

Platinum Japan Fd Ltd $ 35.83 - 0.88 0.00

Optima Emerging Markets Fd Ltd $ 14.39 - 0.08 0.00

Optima Partners Global Fd $ 12.39 - 0.06 0.00

Optima Partners Focus Fund A $ 12.29 - 0.07 0.00

Cuttyhunk II Limited Unrestricted USD Acc NAV $ 1172.14 - -0.33 0.00

Orbis Investment Management Ltd (BMU)RegulatedOrbis Global Equity $ 133.73 - 3.78 0.00

Orbis Optimal (US$) $ 73.92 - 1.02 0.00

Orbis Optimal (Euro) € 24.75 - 0.30 0.00

Orbis Optimal (Yen) ¥ 1005.00 - 17.00 0.00

Orbis Leveraged (US$) $ 122.25 - 3.83 0.00

Orbis Leveraged (Euro) € 39.94 - 1.23 0.00

Orbis Leveraged (Yen) ¥ 958.00 - 31.00 0.00

Orbis Japan Equity (US$) $ 26.11 - 0.12 0.00*Orbis Prices as of January 10th

Orbis Sicav (LUX)RegulatedOrbis Japan Equity (Yen) ¥ 2507.00 - 13.00 0.00

Orbis Japan Equity (Euro) € 16.90 - 0.07 0.00

Orbis Asia ex-Japan - Investor Shares $ 19.67 - 0.30 0.00

Orbis Global Equity - Investor Shares € 99.28 - 1.26 0.00

Orbit Asset ManagementOther International FundsOrbit Global Strategy $ 147.04 - 1.62 0.00

Orbit Euro Strategies € 128.27 - 1.55 0.00

Oryx International Growth Fund LtdOther International FundsNAV (Fully Diluted) £ 3.40 - 0.23 0.00

PFPC International LtdOther International FundsIntl Dollar Reserve A $ 1.00 - 0.00 0.04

Intl Dollar Reserve B $ 1.00 - 0.00 0.04

Intl Dollar Reserve Bear $ 1.00 - 0.00 0.04

Permal Investment Mgmt Svcs Ltdwww.permal.comOther International FundsOffshore Fund Class A US $ SharesInvestment Holdings N.V. $ 4737.95 - 74.70 -

Macro Holdings Ltd $ 4124.49 - 40.96 -

Fixed Income Holdings N.V. $ 417.44 - -10.99 -

LUX Advantage Multi-Strategy Fund $ 1435.63 - 17.58 -

LUX Natural Resources $ 1304.64 - 7.46 -

Strategic Allocation A $ 1290.88 - 14.81 -

Pictet Funds (Europe) SA (LUX)15, Avenue J.F. Kennedy L-1855 LuxembourgTel: 0041 58 323 3000FSA RecognisedPictet-Absl Rtn Glo Cons-I EUR F € 107.04 - -0.25 0.00

Pictet-Absl Rtn Glo Cons-P EUR F € 104.64 - -0.25 0.00

Pictet-Absl Rtn Glo Cons-Pdy EUR F € 100.86 - -0.23 0.94

Pictet-Absl Rtn Glo Div-I EUR F € 123.83 - -0.42 0.00

Pictet-Absl Rtn Glo Div-P EUR F € 118.90 - -0.41 0.00

Pictet-Absl Rtn Glo Div-Pdy EUR F € 114.76 - -0.40 0.44

Fund Bid Offer D+/- Yield

Pictet-Absl Rtn Glo Div-R EUR F € 114.90 - -0.40 0.00

Pictet-AbsRetGloDiv-HI CHF F SFr 179.09 - -0.62 0.00

Pictet-AbsRetGloDiv-HI GBP F £ 104.34 - -0.36 0.00

Pictet-AbsRetGloDiv-HI JPY F ¥ 13741.00 - -48.00 0.00

Pictet-AbsRetGloDiv-HI USD F $ 156.79 - -0.54 0.00

Pictet-AbsRetGloDiv-HP CHF F SFr 171.94 - -0.59 0.00

Pictet-AbsRetGloDiv-HPdy GBP F £ 96.88 - -0.33 0.36

Pictet-AbsRetGloDiv-HP USD F $ 150.53 - -0.52 0.00

Pictet-Agriculture-I EUR F € 155.30 - -1.59 0.00

Pictet-Agriculture-I USD F $ 206.07 - 0.48 0.00

Pictet-Agriculture-P EUR F € 150.69 - -1.55 0.00

Pictet-Agriculture-P dy EUR F € 150.69 - -1.55 0.00

Pictet-Agriculture-P dy GBP F £ 124.05 - -0.23 0.00

Pictet-Agriculture-P dy USD F $ 199.95 - 0.45 0.00

Pictet-Agriculture-R EUR F € 146.92 - -1.51 0.00

Pictet-Agriculture-R USD F $ 194.95 - 0.45 0.00

Pictet-Agriculture-P USD F $ 199.95 - 0.45 0.00

Pictet-Asian Equities Ex Japan-I USD F $ 193.50 - -0.84 0.00

Pictet-Asian Equities Ex Japan-P USD F $ 179.60 - -0.79 0.00

Pictet-Asian Equities Ex Japan-P dy USD F $ 175.93 - -0.77 0.00

Pictet-Asian Equities Ex Japan-HI EUR F € 126.22 - -0.55 0.00

Pictet-Asian Local Currency Debt-I EUR F € 122.74 - -1.30 0.00

Pictet-Asian Local Currency Debt-I USD F $ 162.86 - 0.32 0.00

Pictet-Asian Local Currency Debt-P EUR F € 117.63 - -1.25 0.00

Pictet-Asn Lcl Ccy Dbt-Pdy USD F $ 133.25 - 0.26 2.80

Pictet-Asn Lcl Ccy Dbt-Pdy GBP F £ 83.96 - -0.19 2.77

Pictet-Biotech-P USD $ 385.15 - 0.17 0.00

Pictet-Biotech-P dy GBP F £ 239.01 - -1.36 0.00

Pictet-Biotech-HP EUR F € 285.56 - 0.09 0.00

Pictet-Biotech-I USD F $ 421.89 - 0.19 0.00

Pictet-Biotech-P dy USD F $ 384.97 - 0.17 0.00

Pictet-CHF Liquidity-P F SFr 124.28 - 0.00 0.00

Pictet-Clean Energy-I EUR F € 51.08 - -0.42 0.00

Pictet-Clean Energy-I USD F $ 67.78 - 0.28 0.00

Pictet-Clean Energy-P EUR F € 48.73 - -0.41 0.00

Pictet-Clean Energy-P USD F $ 64.66 - 0.27 0.00

Pictet-Clean Energy-P dy USD F $ 64.66 - 0.27 0.00

Pictet-Clean Energy-P dy GBP F £ 40.12 - 0.01 0.00

Pictet-Convertible Bonds-I EUR F € 102.57 - 0.23 0.00

Pictet-Convertible Bonds-P EUR F € 100.32 - 0.27 0.00

Pictet-Convertible Bonds-P dy EUR F € 99.05 - 0.28 1.04

Pictet-Convertible Bonds-R EUR F € 97.80 - 0.26 0.00

Pictet-Digital Communication-I EUR F € 125.21 - -0.86 0.00

Pictet-Digital Communication-I USD F $ 166.14 - 0.94 0.00

Pictet-Digital Communication-P EUR F € 113.87 - -0.79 0.00

Pictet-Digital Communication-P USD $ 151.10 - 0.85 0.00

Pictet-Digital Communication-P dy USD F $ 145.73 - 0.82 0.00

Pictet-Digital Communication-P dy GBP F £ 91.49 - 0.14 0.00

Pictet-Digital Communication-R EUR F € 104.95 - -0.73 0.00

Pictet-Eastern Europe-I EUR F € 388.89 - -5.09 0.00

Pictet-Eastern Europe-P EUR F € 374.26 - -4.89 0.00

Pictet-Eastern Europe-P dy EUR F € 369.66 - -4.84 1.10

Pictet-Eastern Europe-P dy GBP F £ 303.25 - -1.88 1.10

Pictet-Em Lcl Ccy Dbt-HI EUR F € 140.00 - 0.49 0.00

Pictet-Em Lcl Ccy Dbt-HP EUR F € 134.23 - 0.47 0.00

Pictet-Em Lcl Ccy Dbt-I EUR F € 161.01 - -1.51 0.00

Pictet-Em Lcl Ccy Dbt-I USD F $ 212.74 - 0.76 0.00

Pictet-Em Lcl Ccy Dbt-P EUR F € 154.32 - -1.46 0.00

Pictet-Em Lcl Ccy Dbt-P USD F $ 203.91 - 0.73 0.00

Pictet-Em Lcl Ccy Dbt-Pdy USD F $ 147.96 - 0.52 4.73

Pictet-Em Lcl Ccy Dbt-Pdy GBP F £ 94.56 - -0.25 4.78

Pictet-Emerging Markets-I USD F $ 572.59 - -2.43 0.00

Pictet-Emerging Markets-P USD $ 538.61 - -2.29 0.00

Pictet-Emerging Markets-P EUR F € 405.91 - -6.86 0.00

Pictet-Emerging Markets-P dy USD F $ 533.08 - -2.26 0.00

Pictet-Emerging Markets Index-I USD F $ 264.52 - 1.01 0.00

Pictet-Emerging Markets Index-IS USD F $ 263.19 - 0.99 0.00

Pictet-Emerging Markets Index-P dy USD F $ 234.26 - 0.88 1.80

Pictet-Emerging Markets Index-R USD F $ 250.32 - 0.94 0.00

Pictet-Emerging Markets Index-P USD $ 258.56 - 0.98 0.00

Pictet-Emerging Markets Index-R dy GBP F £ 149.47 - -0.36 1.54

Pictet-EUR Bonds-HI CHF F SFr 645.60 - -0.62 0.00

Pictet-EUR Bonds-HP CHF F SFr 619.80 - -0.60 0.00

Pictet-EUR Bonds-I F € 480.51 - -0.46 0.00

Pictet-EUR Bonds-P F € 461.36 - -0.44 0.00

Pictet-EUR Bonds-P dy F € 306.14 - -0.29 3.20

Pictet-EUR Corporate Bonds-HI USD F $ 206.86 - -0.37 0.00

Pictet-EUR Corporate Bonds-HI CHF FSFr 243.01 - -0.44 0.00

Pictet-EUR Corporate Bonds-HP USD F $ 197.46 - -0.36 0.00

Pictet-EUR Corporate Bonds-HP CHF FSFr 232.00 - -0.43 0.00

Pictet-EUR Corporate Bonds-I F € 181.05 - -0.32 0.00

Pictet-EUR Corporate Bonds-P F € 172.76 - -0.31 0.00

Pictet-EUR Corporate Bonds-P dy F € 104.73 - -0.19 3.34

Pictet-EUR Government Bonds-P dy F € 105.53 - 0.02 2.99

Pictet-EUR High Yield-HI CHF F SFr 289.03 - -0.80 0.00

Pictet-EUR High Yield-HP CHF F SFr 273.43 - -0.76 0.00

Pictet-EUR High Yield-I F € 213.77 - -0.59 0.00

Pictet-EUR High Yield-P F € 202.23 - -0.56 0.00

Pictet-EUR High Yield-P dy F € 92.71 - -0.26 5.52

Pictet-EUR Inflation Linked Bonds-P dy F € 108.64 - -0.21 1.18

Pictet-EUR Short Mid-Term Bonds-HI CHF FSFr 115.03 - 0.16 0.00

Pictet-EUR Short Mid-Term Bonds-HP CHF FSFr 112.81 - 0.16 0.00

Pictet-EUR Short Mid-Term Bonds-P F € 129.63 - 0.18 0.00

Pictet-EUR Short Mid-Term Bonds-I F € 132.00 - 0.18 0.00

Pictet-EUR Short Mid-Term Bonds-P dy F € 89.97 - 0.12 2.80

Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 103.36 - 0.00 0.00

Pictet-EUR Sov.Sht.Mon.Mkt EUR P € 102.86 - 0.00 0.00

Pictet-EUR Sov.Sht.Mon.Mkt EUR Pdy € 99.94 - 0.00 0.22

Pictet-European Sust Eq-P EUR F € 159.71 - -0.59 0.00

Pictet-Europe Index-I EUR F € 126.04 - -0.34 0.00

Pictet-Europe Index-IS EUR F € 125.90 - -1.02 0.00

Pictet-Europe Index-P EUR € 124.61 - -0.34 0.00

Pictet-Europe Index-P dy EUR F € 103.58 - -0.28 2.91

Fund Bid Offer D+/- Yield

Pictet-Europe Index-R dy GBP F £ 89.60 - -0.11 2.63

Pictet-Euroland Index-P dy EUR F € 79.22 - 0.03 2.89

Pictet-Euroland Index-R dy GBP F £ 68.98 - 0.49 2.63

Pictet-European Equity Selection-I EUR F € 526.87 - -2.09 0.00

Pictet-European Equity Selection-P EUR F € 500.77 - -2.00 0.00

Pictet-Eu Equities Sel-Pdyistr F € 459.58 - -1.83 1.52

Pictet-Europe Index-R EUR F € 120.83 - -0.98 0.00

Pictet-European Sust Eq-I EUR F € 166.74 - -0.60 0.00

Pictet-European Sust Eq-Pdy EUR F € 140.40 - -0.52 1.97

Pictet-Generics-I USD F $ 165.90 - -0.29 0.00

Pictet-Generics-P USD F $ 155.18 - -0.27 0.00

Pictet-Generics-P dy GBP F £ 96.25 - -0.57 0.00

Pictet-Generics-P dy USD F $ 155.14 - -0.27 0.00

Pictet-World Government Bonds-P USD $ 184.77 - 0.33 0.00

Pictet-World Government Bonds-P dy USD $ 139.29 - 0.26 2.24

Pictet-Global Emerging Debt-P USD F $ 329.62 - -0.21 0.00

Pictet-Global Emerging Debt-P dy USD F $ 185.09 - -0.12 4.45

Pictet-Global Emerging Currencies-I EUR F € 83.47 - -0.78 0.00

Pictet-Global Emerging Currencies-I USD F $ 110.78 - 0.41 0.00

Pictet-Global Emerging Currencies-HI EUR F € 69.55 - 0.25 0.00

Pictet-Global Emerging Currencies-HP EUR F € 68.03 - 0.25 0.00

Pictet-Global Emerging Currencies-P EUR F € 81.63 - -0.76 0.00

Pictet-Global Emerging Currencies-P USD F $ 108.31 - 0.39 0.00

Pictet-Global Em Ccy-Pdy USD F $ 97.83 - 0.35 2.37

Pictet-Global Emerging Debt-HP EUR F € 234.95 - -0.16 0.00

Pictet-Global Emerging Debt-HP CHF FSFr 379.56 - -0.24 0.00

Pictet-Global Emerging Debt-HI EUR F € 246.88 - -0.16 0.00

Pictet-Global Emerging Debt-HI CHF FSFr 401.58 - -0.25 0.00

Pictet-Global Emerging Debt-I USD F $ 348.64 - -0.22 0.00

Pictet-Global Megatrend Selection-I USD F $ 171.24 - 0.36 0.00

Pictet-Global Megatrend Selection-I EUR F € 129.05 - -1.35 0.00

Pictet-Global Megatrend Selection-P USD F $ 165.36 - 0.34 0.00

Pictet-Global Megatrend Selection-P CHF FSFr 151.55 - -0.70 0.00

Pictet-Global Megatrend Selection-P EUR F € 124.64 - -1.31 0.00

Pictet-Glo Megatrend Sel-Pdy EUR F € 124.62 - -1.31 0.00

Pictet-Glo Megatrend Sel-Pdy GBP F £ 102.59 - -0.21 0.00

Pictet-Glo Megatrend Sel-Pdy USD F $ 165.36 - 0.34 0.00

Pictet-Global Megatrend Selection-R EUR F € 120.00 - -1.27 0.00

Pictet-Global Megatrend Selection-R USD F $ 159.23 - 0.32 0.00

Pictet-Greater China-I USD F $ 418.73 - -1.67 0.00

Pictet-Greater China-P USD F $ 390.40 - -1.57 0.00

Pictet-Greater China-P dy USD F $ 376.59 - -1.51 0.62

Pictet-Greater China-P dy GBP F £ 232.86 - -1.89 0.62

Pictet-High Dividend Sel I EUR F € 116.50 - -0.52 0.00

Pictet-High Dividend Sel P CHF F SFr 138.08 - -0.39 0.00

Pictet-High Dividend Sel P EUR F € 114.00 - -0.51 0.00

Pictet-High Dividend Sel P USD F $ 150.63 - 1.27 0.00

Pictet-High Dividend Sel Pdm GBP F £ 84.96 - 0.20 3.99

Pictet-High Dividend Sel Pdm USD F $ 135.65 - 1.14 3.92

Pictet-High Dividend Sel Pdy EUR F € 103.52 - -0.47 3.98

Pictet-High Dividend Sel R EUR F € 112.03 - -0.51 0.00

Pictet-High Dividend Sel Rdm EUR F € 100.79 - -0.46 4.09

Pictet-Indian Equities-I USD F $ 335.99 - 0.61 0.00

Pictet-Indian Equities-P USD F $ 313.67 - 0.56 0.00

Pictet-Indian Equities-P dy USD F $ 313.67 - 0.56 0.00

Pictet-Indian Equities-P dy GBP F £ 194.61 - -0.45 0.00

Pictet-Japan Index-I JPY F ¥ 9237.85 - 108.52 0.00

Pictet-Japan Index-IS JPY F ¥ 9313.09 - 109.39 0.00

Pictet-Japan Index-P JPY F ¥ 9131.62 - 107.25 0.00

Pictet-Japan Index-P dy JPY F ¥ 8344.55 - 98.00 1.65

Pictet-Japan Index-R dy GBP F £ 59.41 - -0.11 1.47

Pictet-Japanese Equities Opp-P JPY F ¥ 4978.05 - 48.08 0.00

Pictet-Japanese Equities Opp-I JPY F ¥ 5239.10 - 50.69 0.00

Pictet-Japanese Equities Opp-P dy JPY F ¥ 4932.85 - 47.64 0.09

Pictet-Japanese Equity Selection-I JPY F ¥ 8270.16 - 86.52 0.00

Pictet-Japanese Equity Selection-P JPY F ¥ 7870.78 - 82.21 0.00

Pictet-Japanese Eq Sel-Pdy GBP F £ 54.01 - -0.17 0.53

Pictet-Japanese Eq Sel-Pdy JPY F ¥ 7722.71 - 80.67 0.51

Pictet-LATAM Lc Ccy Dbt-Pdy GBP F £ 71.48 - -0.06 5.82

Pictet-LATAM Lc Ccy Dbt-I EUR F € 121.66 - -0.94 0.00

Pictet-LATAM Lc Ccy Dbt-I USD F $ 159.41 - 0.84 0.00

Pictet-LATAM Lc Ccy Dbt-P EUR F € 117.78 - -0.91 0.00

Pictet-LATAM Lc Ccy Dbt-P USD F $ 154.32 - 0.82 0.00

Pictet-LATAM Lc Ccy Dbt-Pdy USD F $ 111.42 - 0.59 5.75

Pictet-LATAM Lc Ccy Dbt-R EUR F € 114.46 - -0.89 0.00

Pictet-LATAM Lc Ccy Dbt-R USD F $ 150.02 - 0.79 0.00

Pictet-Pacific Ex Japan Index-P USD F $ 352.56 - -1.61 0.00

Pictet-Pacific Ex Japan Index-I USD F $ 356.74 - -1.62 0.00

Pictet-Pacific Ex Japan Index-IS USD F $ 357.98 - 0.18 0.00

Pictet-Pacific Ex Japan Index-P dy USD F $ 279.29 - -1.27 3.43

Pictet-Pacific Ex Japan Index-R USD F $ 344.88 - 0.14 0.00

Pictet-Pacific Ex Japan Index-R dy GBP F £ 190.66 - -0.70 3.17

Pictet-Premium Brands-I EUR F € 118.53 - -1.49 0.00

Pictet-Premium Brands-I USD F $ 157.28 - 0.01 0.00

Pictet-Premium Brands-P EUR € 107.85 - -1.36 0.00

Pictet-Premium Brands-P USD F $ 143.11 - 0.01 0.00

Pictet-Premium Brands-P dy EUR F € 107.78 - -1.36 0.00

Pictet-Premium Brands-P dy GBP F £ 88.73 - -0.37 0.00

Pictet-Russian Equities-P USD F $ 67.42 - -0.02 0.00

Pictet-Russian Equities-P dy GBP F £ 41.56 - -0.27 0.62

Pictet-Russian Equities-I EUR F € 53.20 - -0.71 0.00

Pictet-Russian Equities-I USD F $ 70.30 - -0.02 0.00

Pictet-Russian Equities-P EUR F € 51.02 - -0.69 0.00

Pictet-Russian Equities-P dy USD F $ 66.94 - -0.03 0.61

Pictet-Security-I EUR F € 107.61 - -1.10 0.00

Pictet-Security-I USD F $ 142.78 - 0.32 0.00

Pictet-Security-P EUR F € 102.19 - -1.05 0.00

Pictet-Security-P USD F $ 135.59 - 0.30 0.00

Pictet-Security-P dy USD F $ 135.59 - 0.30 0.00

Pictet-Security-P dy GBP F £ 84.12 - -0.16 0.00

Pictet-Security-R EUR F € 97.84 - -1.01 0.00

Pictet-Security-R USD F $ 129.82 - 0.28 0.00

Pictet-Small Cap Europe-I EUR F € 689.75 - -0.69 0.00

Fund Bid Offer D+/- Yield

Pictet-Small Cap Europe-P EUR F € 645.34 - -0.66 0.00

Pictet-Small Cap Europe-P dy EUR F € 636.11 - -0.65 0.11

Pictet-ST.MoneyMkt-I € 140.22 - 0.02 0.00

Pictet-ST.MoneyMkt-ICHF SFr 125.28 - 0.01 0.00

Pictet-ST.MoneyMkt-P € 137.80 - 0.01 0.00

Pictet-ST.MoneyMkt-PCHF SFr 91.21 - 0.00 1.05

Pictet-ST.MoneyMkt-IUSD $ 134.21 - 0.01 0.00

Pictet-ST.MoneyMkt-PUSD $ 132.08 - 0.00 0.00

Pictet-ST.MoneyMkt-Pdy $ 84.33 - 0.00 0.50

Pictet-ST.MoneyMkt-Pdy € 95.60 - 0.00 0.66

Pictet-Timber-HP EUR F € 89.90 - 0.18 0.00

Pictet-Timber-I USD F $ 141.98 - 0.30 0.00

Pictet-Timber-I EUR F € 107.00 - -1.12 0.00

Pictet-Timber-P USD F $ 137.00 - 0.28 0.00

Pictet-Timber-P EUR F € 103.25 - -1.08 0.00

Pictet-Timber-P dy USD F $ 130.71 - 0.27 0.16

Pictet-Timber-P dy GBP F £ 81.10 - -0.17 0.16

Pictet-US Equity Growth Selection-I USD F $ 135.20 - 0.79 0.00

Pictet-US Equity Growth Selection-P USD F $ 129.75 - 0.76 0.00

Pictet-US Eq Gr Sel-Pdy USD F $ 129.75 - 0.76 0.00

Pictet-US Equity Growth Selection-R USD F $ 125.58 - 0.73 0.00

Pictet-US High Yield-HI CHF F SFr 137.96 - 0.10 0.00

Pictet-US High Yield-HI EUR F € 92.94 - 0.07 0.00

Pictet-US High Yield-HP CHF F SFr 135.43 - 0.09 0.00

Pictet-US High Yield-HP EUR F € 91.24 - 0.07 0.00

Pictet-US High Yield-I USD F $ 139.06 - 0.10 0.00

Pictet-US High Yield-P USD F $ 136.49 - 0.10 0.00

Pictet-US High Yield-P dy USD F $ 116.32 - 0.08 0.00

Pictet-US High Yield-R USD F $ 134.34 - 0.09 0.00

Pictet-USA Index-P USD $ 123.82 - 0.93 0.00

Pictet-USA Index-I USD F $ 125.33 - 0.94 0.00

Pictet-USA Index-IS USD F $ 125.99 - 0.95 0.00

Pictet-USA Index-P dy USD F $ 115.93 - 0.87 1.02

Pictet-USA Index-R USD F $ 120.26 - 0.91 0.00

Pictet-USA Index-R dy GBP F £ 72.61 - 0.10 0.75

Pictet-USD Government Bonds-I F $ 611.66 - -0.98 0.00

Pictet-USD Government Bonds-P F $ 590.14 - -0.95 0.00

Pictet-USD Government Bonds-P dy F $ 387.68 - -0.63 2.50

Pictet-USD Short Mid-Term Bonds-I F $ 127.58 - -0.01 0.00

Pictet-USD Short Mid-Term Bonds-P F $ 125.39 - -0.01 0.00

Pictet-USD Short Mid-Term Bonds-P dy F $ 97.39 - -0.01 1.13

Pictet-USD Sov.ST.Mon.Mkt-I $ 102.34 - 0.00 0.00

Pictet-USD Sov.ST.Mon.Mkt-P $ 101.95 - 0.00 0.00

Pictet-USD Sov.ST.Mon.Mkt-Pdy $ 99.96 - 0.00 0.46

Pictet-Water-HP USD F $ 221.39 - -1.99 0.00

Pictet-Water-HR USD F $ 204.92 - -1.85 0.00

Pictet-Water-I EUR F € 186.84 - -1.66 0.00

Pictet-Water-I USD F $ 247.92 - 0.91 0.00

Pictet-Water-P EUR € 170.20 - -1.52 0.00

Pictet-Water-P USD F $ 225.84 - 0.82 0.00

Pictet-Water-P dy EUR F € 167.16 - -1.50 0.43

Pictet-Water-P dy GBP F £ 138.19 - -0.07 0.43

Pictet-Water-R USD F $ 209.04 - 0.75 0.00

Pictet-Water-R EUR € 157.54 - -1.41 0.00

Pictet-World Government Bonds-I EUR F € 144.79 - -1.63 0.00

Pictet-World Government Bonds-I USD F $ 190.68 - 0.35 0.00

Pimco Fds: Global Investors Series Plc (IRL)PIMCO Europe Ltd,11 Baker Street,London W1U 3AHhttp://gisnav.pimco-funds.com/Dealing: +44 20 3640 1000PIMCO Funds: +44 (0)20 3640 1407FSA RecognisedCommoditiesPLUS111sp Strategy - Inst Acc $ 10.14 - 0.08 0.00

Diversified Income - Inst Acc $ 18.63 - 0.00 0.00

Emerging Local Bond - Inst Acc $ 15.12 - 0.08 0.00

Emerging Markets Bond - Inst Acc $ 40.16 - 0.04 0.00

Emerging Markets Corp.Bd Fund Inst Acc F $ 13.56 - 0.01 0.00

Emerging Markets Curr.Fd- Inst Acc $ 13.96 - 0.06 0.00

EuriborPLUS - Inv. Acc € 11.68 - 0.00 0.00

Euro Bond - Inst Acc € 19.62 - 0.01 0.00

Euro Credit - Inst Acc € 13.19 - -0.03 0.00

Euro Income Bond - Inst Acc F € 11.65 - -0.01 0.00

Euro Long Average Duration - Inst Acc € 16.71 - -0.12 0.00

Euro Real Return - Inst Acc € 12.66 - 0.01 0.00

Euro Ultra Long Duration - Inst Acc € 21.59 - -0.30 0.00

Global Advantage - Inst Acc $ 13.18 - 0.07 0.00

Global Bond - Inst Acc $ 25.45 - 0.02 0.00

Global Bond Ex-US - Inst Acc $ 17.31 - 0.03 0.00

Global High Yield Bond - Inst Acc $ 18.26 - 0.03 0.00

Global Investment Grade Credit - Inst Income $ 12.41 - -0.01 3.56

Global Multi-Asset - Inst Acc $ 14.68 - 0.10 0.00

Global Real Return - Inst Acc $ 17.75 - 0.24 0.00

High Yield Bond - Inst Acc $ 25.30 - 0.03 0.00

Low Average Duration - Inst Acc $ 14.48 - -0.01 0.00

PIMCO EqS Pathfinder.Eur.Fd Inst Acc F € 11.51 - -0.01 0.00

PIMCO EqS Pathfinder.Fd Inst Acc F $ 11.73 - 0.08 0.00

Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 13.22 - 0.01 0.00

StocksPLUS{TM} - Inst Acc $ 15.79 - 0.13 0.00

Total Return Bond - Inst Acc $ 26.32 - -0.02 0.00

UK Corporate Bond - Inst Acc £ 14.87 - -0.03 0.00

UK Long Term Corp. Bnd Inst-Inst Acc £ 15.84 - -0.07 0.00

UK Sterling Inflation-Linked - Inst Acc £ 19.31 - 1.10 0.00

UK Sterling Long Average Duration - Inst Acc £ 17.88 - -0.05 0.00

UK Sterling Low Average Duration - Inst Acc £ 13.81 - 0.04 0.00

Unconstrained Bond - Inst Acc $ 12.17 - 0.00 0.00

US Government Money Market - Inst Inc $ 1.00 - 0.00 0.05

Pioneer Alternative Inv Mgt (BMU)Other International FundsPioneer Horizon Fund $ 118.06 - 0.69 0.00

Pioneer AssetMaster $ 858.26 - -1.51 0.00

Pioneer Div Fund I EUR € 103.13 - 0.55 -

Pioneer Div Fund I USD $ 103.61 - 0.57 -

The Meteor Opps I $ 136.09 - 1.02 0.00

The Meteor Opps I € 136.40 - 0.92 0.00

Fund Bid Offer D+/- Yield

Platinum Capital Management LtdOther International FundsPlatinum Global Dividend Fund - A (Est) $ 59.18 - - -

Platinum All Star Fund - A (Est) $ 101.32 - - -

Platinum Dynasty (Est) $ 105.61 - - -

Platinum Essential Resources $ 9.43 - 0.15 0.00

Platinum Low Volatility Fund SICAV (Est) $ 9.29 - - -

Platinum Nordic (Est) SKr 521.43 - - -

Platinum Precious Metals (Est) € 10.15 - -0.48 -

Platinum Maverick Enhanced (Est) $ 68.70 - - -

Platinum Gold Advantage (Est) € 11.48 - - -

Platinum Global Dividend UCITS Fund $ 75.48 - 0.63 0.00

Polar Capital Funds Plc (IRL)RegulatedAsian Financials Fund Cls A USD $ 276.35 276.35 -0.07 0.58

European Market Neutral Fund Cls I Euro € 9.40 9.40 0.01 -

Financials Income Fund Cls B2 GBP Acc £ 1.30 1.30 0.00 0.00

Financial Opps I USD $ 10.42 - 0.05 0.00

GEM Growth I USD $ 10.45 - 0.02 0.00

GEM Income I USD $ 11.66 - 0.01 0.00

Global Alpha I USD $ 10.50 10.50 0.12 -

Global Insurance I GBP £ 2.57 - 0.00 0.00

Global Technology I USD $ 15.84 - 0.12 0.00

Healthcare Opps I USD $ 19.04 - 0.12 0.00

Japan Alpha I JPY ¥ 118.32 118.32 1.30 -

Japan I JPY ¥ 1235.87 - 13.97 0.00

North American I USD $ 12.10 12.10 0.08 0.00

UK ARF I GBP £ 10.23 - 0.04 0.00

Polar Capital LLP (CYM)RegulatedALVA Convertible A USD $ 111.27 - 0.50 0.00

European Market Neutral Fund A EUR € 97.45 - 0.29 0.00

European Conviction A EUR € 157.02 - 2.49 0.00

European Forager A EUR € 154.58 - 2.14 0.00

Policy Selection LimitedOther International FundsAssured USD A $ 120.96 - 0.28 0.00

Assured USD B $ 106.36 - 0.16 0.00

Assured USD C $ 114.94 - 0.22 0.00

Assured USD D $ 108.17 - 0.18 0.00

Assured F USD $ 72.97 - 0.04 0.00

Assured GBP B £ 95.02 - 0.25 0.00

Assured GBP C £ 90.27 - 0.28 0.00

Assured EUR D € 80.79 - -0.59 0.00

Assured EUR B € 74.13 - -0.55 0.00

Assured CHF E SFr 55.69 - -0.43 0.00

Polunin Capital Partners LtdOther International FundsDeveloping Countries 'A' $ 36.77 - 0.50 0.00

Emerging Markets Active $ 27.03 - 1.50 -

Luxcellence Em Mkts Tech $ 764.78 - 24.13 0.00

Em Mkts Strategy Developing $ 813.40 - 21.42 0.00

Em Mkts Strategy Small Cap $ 1081.31 - 17.55 0.00

Polunin Discovery Funds - Frontier Markets Fund $ 1042.38 - 9.39 -

Private Fund Mgrs (Guernsey) Ltd (GSY)RegulatedMonument Growth £ 358.91 363.29 4.83 0.00

Progressive Asset Management Limited (UK)2 The Boulevard, City West One Office Park, Leeds LS12 6NT 08456 081462Authorised Inv FundsCF Progressive UK Smaller Cos Fd A 147.55 - 0.91 1.09

CF Progressive UK Smaller Cos Fd B 146.64 - 0.89 0.91

Prosperity Capital Management Ltd (CYM)RegulatedRPF A Shares $ 220.49 - - 0.00

RPF D $ 13.74 - -0.04 0.00

PQF B Shares $ 500.07 - 1.43 0.00

PCF $ 434.17 439.92 3.84 0.00

CAPF $ 7.67 - -0.24 0.00

Prusik Investment Management LLP (IRL)Enquiries - 0207 493 1331RegulatedPrusik Asian Equity Income B Dist $ 130.75 - 0.05 5.17

Prusik Asia A $ 178.19 - 0.47 0.00

Prusik Asian Smaller Cos A $ 160.58 - 0.60 0.00

Purisima Investment Fds (UK) (1200)F (UK)Ibex House, 42-47 Minories, London, EC3N 1DXOrder Desk 08459 22044, Enquiries: 0870 607 2555Authorised Inv FundsAuthorised Corporate Director - Capita Financial ManagersGlobal Total Fd PCG A 123.77 - 0.39 0.86

Global Total Fd PCG B 122.97 - 0.39 0.60

Global Total Fd PCG INT 121.79 - 0.39 0.31

Purisima Investment Fds (CI) Ltd (JER)RegulatedPCG B 128.31 - 0.55 0.00

PCG C 126.73 - 0.54 0.00

Putnam Investments (Ireland) Ltd (IRL)RegulatedPutnam New Flag Euro High Yield Plc - E € 1055.64 - 3.11 5.26

Putnam New Flag Euro High Yield Plc - M € 958.13 - 2.80 4.69

R & H Fund Services (Jersey) Ltd (JER)RegulatedCamber International Equity Growth Limited £ 12.80 - 0.33 0.44BDP LimitedBond Fund GBP £ 10.12 - 0.01 5.85

Income Fund Sterling £ 3.34 - 0.02 8.68

FTfm

22 FINANCIAL TIMES MONDAY JANUARY 14 2013

Fund Bid Offer D+/- Yield

The Discretionary Pfolio £ 12.34 - 0.40 1.62

RREEF Real Estate Funds (UK)Property & Other UK Unit TrustsUK Industrial £ 1557.74 1643.46 -21.39 0.00

UK Office £ 948.86 1001.12 -27.81 0.00

UK Retail £ 1658.16 1748.16 -75.31 0.00

UK Core Property A £ 112.99 119.17 -3.90 3.31

UK Core Property B £ 112.99 119.17 -3.90 3.04

Rathbone Unit Trust Mgmt (1200)F (UK)PO Box 9948, Chelmsford, CM99 2AGOrder Desk: 0845 300 2101, Enquiries: 0207 399 0399Authorised Inv FundsBlue Chip Income Inc 126.64 130.96 -0.21 4.54

Blue Chip Income Acc 170.11 175.86 -0.29 4.39

Ethical Bond Inc 88.25 90.43 0.04 6.33

Ethical Bond Acc 149.49 153.09 0.07 6.43

Global Opportunities Acc 94.65 97.67 -0.24 0.00

Income Inc 692.43 716.98 0.90 4.61

Income Acc 962.73 996.51 1.24 4.47

Multi Asset Enhanced Growth Acc 104.74 - 0.15 0.00

Multi Asset Strategic Growth inc 131.47 - 0.06 1.57

Multi Asset Strategic Growth acc 135.07 - 0.05 1.57

Multi Asset Total Return inc 119.32 - 0.19 2.32

Multi Asset Total Return acc 125.48 - 0.20 2.29

Recovery Inc 329.11 342.10 0.86 2.43

Recovery Acc 372.17 386.70 0.98 2.47

Strategic Bond Ret Acc £ 1.10 1.12 0.00 3.46

Strategic Bond Ret Inc £ 1.06 1.08 0.00 3.32

Robeco Asset Management (LUX)Coolsingel 120, 3011 AG Rotterdam, The Netherlands.tel (31)10 2242381 www.robeco.comFSA RecognisedAsia-Pacific Equities (EUR) € 97.66 - -1.21 0.00

Chinese Equities (EUR) € 57.20 - -0.84 0.00

Em Stars Equities (EUR) € 160.47 - -2.61 0.00

Emerging Markets Equities (EUR) € 145.11 - -2.22 0.00

Flex-o-Rente (EUR) € 107.54 - 0.07 0.00

Glob.Consumer Trends Equities (EUR) € 91.96 - -0.78 0.00

High Yield Bonds (EUR) € 114.48 - 1.25 0.00

Lux -O- Rente (EUR) € 126.86 - 0.01 0.00

Natural Ress Equities (EUR) € 86.45 - -0.08 0.00

New World Financials (EUR) € 37.24 - -0.15 0.00

SAM Sust. Agrib.Eq. D € 115.60 - -0.76 0.00

US Premium Equities (EUR) € 124.27 - 0.79 0.00

US Premium Equities (USD) $ 138.48 - 0.93 0.00

Rothschild Private Fund Mgmnt Ltd (1200)F (UK)1 King William Street, London, EC4N 7AR 0870 870 8105Authorised FundsNew Court Fund Class A 2011 (Net Income Units) £ 10.98 - 0.01 0.47

Pippin Return Fund Class A Acc £ 10.48 - 0.00 0.00

RPIC Foundation £ 13.62 - 0.21 0.77

RPIC Managed A2000 £ 1.51 - 0.02 0.95

RPIC Master A2000 £ 2.30 - 0.04 2.52

RPIC Midway A2002 £ 15.73 - 0.21 1.75

RPIC Preferred Income £ 10.56 - 0.01 3.44

RPIC Private Portfolio A2000 £ 8.62 - 0.10 1.71

RPIC Worldwide Capital A2000 £ 1.70 - 0.03 0.00

RPFM Glenhuntley Inc & Growth Tst Acc 153.50 - 0.00 1.20

RPFM Glenhuntley Inc & Growth Tst Inc 129.20 - 0.00 1.21

RPFM Global Opps Fund A2007 Acc £ 13.61 - 0.19 1.12

RPFM Warren Curtis Trust Inc 135.50 - -0.50 0.34

RPFM Growth A2006 Net Inc £ 12.11 - 0.17 1.02

RPFM Latour Fund Class A 2009 £ 12.54 - 0.18 0.71

BPM Investment - Inc £ 14.82 - 0.00 1.23

BPM Investment - Acc £ 16.13 - 0.00 1.22

RPFM Balanced A2011 £ 10.78 - 0.15 0.80

RPFM Balanced Return A2010 Inc £ 10.92 - 0.00 1.79

RPFM Market fund £ 10.66 - 0.02 -

RPFM Preservation Fund Class A 2010 Income £ 10.65 - 0.00 1.55

RPFM Total Return A 2010 Income £ 10.65 - 0.16 1.00

Royal Bank of Scotland (2230)F (UK)PO Box 23873, Edinburgh EH7 5WJ 0800 917 7072Authorised Inv FundsSeries 5 (Minumum Initial Investment £75,000)United Kingdom Equity Index Fund £ 14.42 - 0.00 2.89

UK Specialist Equity Inc £ 15.70 - 0.06 0.41

Contl Europe Specialist Fund £ 18.75 - 0.15 0.00

Japan Specialist Fund £ 10.65 - 0.04 0.02

US Spec Equity Fund £ 13.06 - 0.00 0.00

Pacific Basin Specialist Equity Fund £ 38.90 - -0.23 0.65

UK Sovereign Bd Index Fund £ 10.33 - -0.06 3.52

Inflation Lkd Sov Bd Fund £ 11.77 - 0.51 1.23

UK Specialist Equity Income Fund £ 8.51 - 0.03 3.86

Global Emerg Mkts Equity Fund £ 11.99 - -0.04 1.13

Global Spec Inv Grade Bd Fund GBP £ 10.85 - 0.03 2.94Series 6 (Investment Management Customers Only)United Kingdom Equity Index Fund £ 14.23 - 0.01 3.24

UK Specialist Equity £ 15.80 - 0.06 1.53

Contl Europe Specialist Fund £ 19.14 - 0.15 0.96

Japan Specialist Fund £ 11.00 - 0.05 0.95

US Spec Equity Fund £ 13.33 - 0.00 0.36

Pacific Basin Specialist Equity Fund £ 38.52 - -0.23 1.34

UK Sovereign Bd Index Fund £ 10.37 - -0.06 3.52

Inflation Lkd Sov Bd Fund £ 11.63 - 0.50 1.23

UK Specialist Equity Income Fund £ 8.86 - 0.03 3.82

Global Spec Inv Grade Bd Fund GBP £ 11.00 - 0.03 2.94

Global Emerg Mkts Equity Fund £ 11.91 - -0.05 1.64Address and telephone number for Series 5 only

Fund Bid Offer D+/- Yield

RBS Collective Investment Fds Ltd (UK)PO Box 9908, Chelmsford, CM99 2AF 0845 300 2585Authorised Inv FundsBalanced Acc 300.90 - 0.20 2.09

Balanced Inc 252.80 - 0.20 2.12

Equity Income 277.10 - -0.50 4.15

Extra Income 102.40 - 0.10 3.97

FTSE 100 Tracker Special 1 254.20 - 0.20 3.11

FTSE 100 Tracker Special 3 177.10 - 0.10 2.89

FTSE 100 Tracker Standard 243.00 - 0.10 2.67

Growth 248.50 - -0.40 2.15

High Yield 116.60 - 0.10 4.71

International Growth 314.20 - 1.00 0.00

Stakeholder Investment 148.30 - 0.00 1.68

Adventurous Growth 121.40 - 0.00 0.90

Balanced Growth 120.40 - 0.10 1.00

Cautious Growth 118.10 - 0.00 1.20

Income 110.30 - 0.10 2.50

Capital Protected Accelerator Fund 1 107.00 - 0.20 0.00

Capital Protected Accelerator Fund 2 112.00 - 1.10 0.00

Capital Protected Accelerator Fund 3 108.90 - 0.30 0.00

Capital Protected Fund 4 110.30 - 0.50 0.00

Capital Protected Fund 5 129.80 - 2.70 0.00

Capital Protected Fund 6 134.50 - 2.60 0.00

Royal Bank of Scotland (IRL)RBS Asset Management (Dublin) LimitedGuild Hse, PO Box 4935 Guild St, IFSC Dublin 1 00 353 1 642 8400FSA RecognisedRBSG Investment ProgrammesRBSG Cont Eur Spec Equity Ser 3 € 94.70 - 0.17 0.79

RBSG UK Equity Index Programme Ser 3 £ 24.65 - 0.02 3.00

RBSG UK Specialist Eqty Ser 3 £ 18.18 - 0.07 0.89

RBSG UK Sovereign Bond Index Prog Ser 3 £ 14.33 - -0.08 3.08

RBSG Contl Eurp Eqty Index Prog Ser 3 € 291.51 - -0.22 1.87

RBSG Japan Specialist Equity Prog Ser 3 ¥ 3831.00 - 62.00 0.62

RBSG US Equity Index Programme Ser 3 $ 51.05 - 0.38 1.03

RBSG Pacific Basin Eqty Ser 3 $ 55.15 - -0.09 1.34

RBSG Emerging Markets Ser 3 $ 35.97 - 0.04 1.07

RBSG Global Investment Grade Bond GBP Series 6 £ 126.61 - 0.28 2.76

RBSG Global Investment Grade Programme GBP S3 £ 116.65 - 0.26 2.79

RBSG UK Sovereign Bond Index Programme Series 6 £ 11.12 - -0.06 3.05

Absolute Rtn Multi Asset Prog SER 3 GBP £ 9.87 - 0.01 0.00** 30 day average yield

Royal London Asset Mgmt (Ireland) Ltd (IRL)PO Box 9428, Dublin 1, Ireland 08456 040404FSA RecognisedRoyal London Asset Management Bond Funds PLCSterling Extra Yield Bond A £ 1.08 - 0.00 7.67

Sterling Extra Yld Bd B £ 1.07 - 0.00 7.40

Ruffer LLP (1000)F (UK)Ibex House, 42-47 Minories, London, EC3N 1DXOrder Desk and Enquiries: 0845 601 9610Authorised Inv FundsAuthorised Corporate Director - Capita Financial ManagersCF Ruffer Investment FundsBaker Steel Gold O Acc 212.96 - -0.28 0.00

Equity & General O Inc 290.96 - 7.42 0.44

Equity & General O Acc 313.26 - 8.00 0.45

European O Acc 398.91 - 9.53 0.62

Pacific O Acc 224.02 - 4.78 0.66

Total Return O Inc 246.95 - 3.32 2.50

Total Return O Acc 339.04 - 4.56 2.46

Japanese Fund O Acc 112.49 - 2.37 0.16

SVG Investment Managers LimitedOther InternationalSVG UK Focus Fd Cls I £ 18.43 18.43 0.02 2.40

SVG UK Focus Fd Cls A £ 17.99 17.99 0.02 1.96

SW Mitchell Capital LLP (CYM)RegulatedS W Mitchell Class A Shares Euro € 241.39 - 8.08 0.00

S W Mitchell Class B Shares USD $ 240.11 - 8.10 0.00

SAM (LUX)Tel. +41 44 653 10 10 www.sam-group.comRegulatedSAM Smart Energy Fund GBP/A £ 12.60 - -0.04 1.13

SAM Smart Materials Fund GBP/A £ 108.90 - -0.14 0.05

SAM Sust. Climate Fund GBP/A £ 66.08 - 0.21 0.16

SAM Sust. Global Active Fd EUR/B € 121.13 - -0.69 0.00

SAM Sust. Healthy Liv Fd EUR/B € 109.76 - -0.86 0.00

SAM Sust. Water Fund GBP/A £ 127.35 - -0.40 0.97

Santander Asset Management UK Limited (1200)F (UK)287 St Vincent Street, Glasgow G2 5NB, 0845 6000 181Authorised Inv FundsMax 70% Shs Acc Ret 142.80 - 0.10 -

Max 70% Shs Inc Ret 126.20 - 0.10 -

Investments Inc Acc Ret 141.90 - 0.00 -

Invstments Inc Inc Inst 186.80 - -0.10 -

Investments Inc Inc Ret 100.50 - 0.00 -

Equity Inc Inc Inst 206.40 - 0.40 -

Equity Inc Inc Ret 180.20 - 0.30 0.00

N&P UK Gwth Inc Ret 153.30 - -0.10 -

Stckmkt 100 Track Gwth Acc Inst 83.29 - 0.07 -

Stckmkt 100 Track Gwth Acc Ret 149.60 - 0.10 -

UK Growth Acc Inst 242.40 - -0.10 -

UK Growth Acc Ret 285.80 - -0.10 -

Fund Bid Offer D+/- Yield

UK Growth Inc Ret 203.60 - -0.10 -Managed OEICGlob Em Shs Port Acc Ret 179.20 - -0.10 -

Max 70% Shs Port Acc Ret 217.60 - 0.50 -

Max 70% Shs Port Acc X 156.20 - 0.40 -

Investment Port Acc Ret 213.10 - -0.10 -

Investment Port Acc X 151.00 - 0.00 -

Max 50% Shs Port Acc Ret 213.60 - 0.30 -

Max 50% Shs Port Inc Ret 199.60 - 0.40 -

Max 50% Shs Port Acc X 154.60 - 0.30 -

Glob Shs Port Acc Ret 219.90 - 0.70 -

Glob Shs Port Acc X 157.90 - 0.50 -

Intl Shs Port Acc Ret 222.70 - 0.70 -

Intl Shs Port Acc X 159.00 - 0.50 -

Enhanced Inc Inc Ins 198.70 - 0.40 -

Enhanced Inc Acc Ret 240.90 - 0.50 -

Enhanced Inc Inc Ret 192.60 - 0.40 -

Enhanced Inc Inc X 160.60 - 0.30 -Managed Investments OEICMax 60% Shs Port Acc Ret 230.10 - 0.40 0.00

Max 60% Shs Port Inc Ret 201.20 - 0.30 -

Max 60% Shs Port Inc X 155.30 - 0.30 -

Eq Inc Port Acc Ret 234.50 - 0.70 0.00

Eq Inc Port Inc Ret 204.00 - 0.60 -Managed Investments OEIC 2Investments Inc Port Inc Inst 187.80 - 0.10 -

Investments Inc Port Inc Ret 166.10 - 0.10 -

Investments Inc Port Inc X 150.50 - 0.00 -

£ Gov Bond Inc Inst 169.50 - -0.40 -

Strat Bond Inc Inst 179.70 - 0.10 -Managed Investments OEIC 3Div Inc Port Inc Inst 154.20 - 0.30 1.22

Div Inc Port Inc Ret 151.70 - 0.30 -

Corp Bond Acc Inst 188.90 - 0.10 -Multi-Manager OEICBalanced Acc Ret 154.80 - 0.40 -

Balanced Inc Ret 118.80 - 0.30 -

Bal Intl Track Acc Ret 221.30 - 0.20 -

Bond Mthly Inc Acc Ret 131.00 - -0.10 -

Bond Mthly Inc Inc Ret 90.96 - -0.04 -

Cautious Acc Ret 134.40 - 0.10 -

Cautious Inc Ret 98.07 - 0.09 -

Equity Acc Ret 169.10 - 0.60 -

Growth Acc Ret 162.00 - 0.50 -

Santander Asset Management UK Limited (1200)F (UK)287 St Vincent Street, Glasgow G2 5NB 0845 605 4400Authorised Inv FundsSantander Premium Fund (OEIC)A SharesEurope (ex-UK) 218.10 - 1.30 -

Japan Equities 116.30 - 0.10 -

Pacific Bas (ex-Japan) 464.50 - -4.10 -

Sterling Bonds 242.40 - 0.00 -

UK Equities 221.90 - 0.20 -

US Equities 168.40 - 0.80 -B SharesPacific Bas (ex-Japan) 463.90 - -4.10 -

Saracen Fund Managers Ltd (1000)F (UK)19 Rutland Square, Edinburgh EH1 2BBDealing: 00 353 1 603 9921Saracen Investment Funds ICVC (OEIC) Enq. 0131 202 9100Authorised Inv FundsSaracen Growth Fd Alpha Acc £ 2.56 - 0.02 0.00

Saracen Growth Fd Beta Acc £ 4.03 - 0.03 0.00

Saracen Global Income and Growth Fund -Acc £ 1.14 - 0.00 0.00

Saracen Global Income and Growth Fund -Dist £ 1.09 - 0.00 3.48.

For Save & Prosper please see Countrywide Assured

Schroders (UK)31 Gresham Street, London EC2V 7QAInvestor Services 0800 718777, Dealing 0800 718788www.schroder.comAuthorised Inv FundsAbsolute Return Bond Fund A Inc 43.00 43.18 0.14 5.82

Absolute Return Bond Fund A Acc 98.06 98.49 0.33 5.55

All Maturities Corporate Bond A Inc 57.58 - 0.03 4.72

All Maturities Corporate Bond A Acc 67.44 - 0.04 4.58

All Maturities Corp Bond I Acc (Gross) 210.40 - 0.20 4.62

Asian Alpha Plus A Inc 82.02 - -0.70 0.26

Asian Alpha Plus A Acc 84.26 - -0.72 0.28

Asian Income A Inc 217.80 219.70 -1.60 4.91

Asian Income A Acc 292.00 294.40 -2.20 4.73

Asian Income Maximiser A Inc 55.48 - -0.34 7.46

Asian Income Maximiser A Acc 67.34 - -0.42 7.12

Corporate Bond A Inc 41.90 42.40 0.03 5.02

Corporate Bond A Acc 82.63 83.61 0.06 4.89

Dynamic Multi Asset A Inc 56.26 - 0.06 0.73

Dynamic Multi Asset A Acc 56.85 - 0.06 0.68

Dynamic Multi Asset D1 Inc 58.24 - 0.07 2.12

Dynamic Multi Asset D1 Acc 60.30 - 0.06 1.59

European A Inc 57.75 - 0.21 1.03

European A Acc 58.38 - 0.22 1.03

Euro Alpha Plus A Inc 117.30 117.70 0.30 0.80

Euro Alpha Plus A Acc 125.00 125.40 0.30 0.79

Euro Smaller Cos A Inc 345.60 348.90 2.20 0.39

Euro Smaller Cos A Acc 367.20 370.70 2.40 0.38

Gilt & Fixed Interest A Inc 61.75 61.79 -0.13 3.37

Gilt & Fixed Interest A Acc 184.90 185.10 -0.40 3.31

Global Alpha Plus A Inc 52.64 - 0.20 0.00

Global Alpha Plus A Acc 52.63 - 0.20 0.00

Global Climate Change A Inc 56.66 - -0.05 0.00

Global Climate Change A Acc 56.79 - -0.04 0.00

Global Emerg Mkts A Inc 135.80 136.70 -0.70 0.71

Global Emerg Mkts A Acc 143.60 144.50 -0.80 0.70

Global Equity Income A Inc 44.75 - -0.08 4.36

Fund Bid Offer D+/- Yield

Global Equity Income A Acc 56.08 - -0.10 3.58

Global Healthcare Fund A Inc 73.18 73.45 0.46 0.42

Global Healthcare Fund A Acc 74.18 74.46 0.47 0.42

Global Property Income Maximiser A Inc 50.96 - -0.17 7.53

Global Property Income Maximiser A Acc 57.48 - -0.20 7.23

Global Prop Securities A Inc 73.45 - -0.29 0.69

Global Prop Securities A Acc 77.38 - -0.30 0.69

Income A Inc 882.10 889.30 3.70 4.28

Income A Acc 5681.00 5727.00 25.00 4.06

Income Maximiser A Inc 44.22 44.56 0.13 7.21

Income Maximiser A Acc 74.95 75.53 0.22 6.89

Japan Alpha Plus A Inc 59.38 59.60 -0.18 0.35

Japan Alpha Plus A Acc 59.81 60.03 -0.17 0.38

Managed Balanaced A Acc 129.80 - 0.20 0.69

Managed Balanced I Inc 431.50 - 0.70 1.63

Managed Balanced I Acc 682.10 - 1.10 1.60

Managed Monthly High Income Fund A Accumulation 56.74 - 0.01 -

Managed Monthly High Income Fund A Income 55.30 - 0.01 -

Managed Wealth Port A Inc 143.20 143.80 0.10 0.07

Managed Wealth Port A Acc 184.70 185.50 0.20 0.07

Monthly High Income A Inc 45.54 45.58 0.07 6.37

Monthly High Income A Acc 98.05 98.14 0.15 6.19

Multi-Mgr Cautious Managed A Inc 57.57 - 0.07 2.08

Multi-Mgr Cautious Managed A Acc 65.49 - 0.08 2.06

Multi-Mgr High Alpha A Inc 76.05 - 0.18 0.00

Multi-Mgr High Alpha A Acc 76.33 - 0.18 0.00

Multi-Mgr Strategic Balanced A Inc 174.00 - 0.40 0.46

Multi-Mgr Strategic Balanced A Acc 193.20 - 0.50 0.45

QEP Global Active Value A Inc 56.22 - 0.13 1.83

QEP Global Active Value A Acc 61.89 - 0.15 1.80

QEP Global Active Value I Inc 56.42 - 0.13 2.79

QEP Global Active Value I Acc 67.81 - 0.16 2.72

QEP Global Core A Acc 58.90 - 0.16 2.51

QEP Global Core A Inc 56.29 - 0.16 2.58

Recovery A Inc 7959.00 8061.00 44.00 1.93

Recovery A Acc 12870.00 13040.00 70.00 1.89

Secure-Distribution 2032 A Acc £ 0.53 - 0.00 -

Small Cap Discovery Fund A Acc 52.78 - -0.18 -

Small Cap Discovery Fund A Inc 52.78 - -0.18 -

Strategic Bond Fund A Accumulation 54.78 - 0.14 -

Strategic Bond Fund A Income 53.49 - 0.14 -

Tokyo A Inc 177.30 178.40 0.40 0.69

Tokyo A Acc 182.10 183.20 0.40 0.69

UK Alpha Plus A Inc 130.30 131.30 0.50 0.94

UK Alpha Plus A Acc 145.60 146.80 0.50 0.92

UK Core Fund A Acc 55.45 - 0.09 2.97

UK Core Fund A Inc 53.96 - 0.09 3.05

UK Equity A Inc 644.00 650.40 1.90 2.01

UK Equity A Acc 1705.00 1722.00 5.00 1.98

UK Mid 250 A Inc 138.80 140.40 0.70 1.02

UK Mid 250 A Acc 160.20 162.10 0.70 1.01

UK Smaller Cos A Inc 1412.00 1459.00 8.00 0.80

UK Smaller Cos A Acc 1863.00 1924.00 11.00 0.79

US Alpha Plus A Acc 58.39 - 0.15 0.00

US Alpha Plus A Inc 58.39 - 0.15 0.00

US Mid Cap A Inc 61.39 61.60 -0.07 0.00

US Mid Cap A Acc 61.44 61.65 -0.07 0.00

US Smaller Cos A Inc 1305.00 1312.00 -2.00 0.00

US Smaller Cos A Acc 1306.00 1313.00 -1.00 0.00

Schroder Property Managers (Jersey) LtdOther International FundsIndirect Real Estate SIRE £ 101.29 105.51 -0.06 4.21

Schroder Inv Mgmt (Guernsey) Ltd (GSY)PO Box 255, St Peter Port, Guernsey 01481 745 001FSA RecognisedOffshore Cash £ 1.7890400 1.7890400 0.0000100 0.00

Offshore Cash B F £ 1.8018100 1.8018100 0.0000100 0.00

Scottish Friendly Asset Managers Ltd (UK)Scottish Friendly Hse, 16 Blythswood Sq, Glasgow G2 4HJ 0141 275 5000Authorised Inv FundsManaged Growth 179.60 - 0.30 0.00

UK Growth 184.20 - 0.40 0.00

SEB Asset Management S.A. (LUX)www.seb.se +352 26 68 2595RegulatedSEB Ethical Europe Fund € 2.34 2.36 -0.02 0.00

SEB Europe Fund € 3.40 3.43 -0.03 0.00

SEB European Equity Small Cap € 148.44 149.93 -0.76 0.89

SEB Asset Selection Fund EUR € 13.86 14.55 0.02 0.00

SEB Russia Fund € 9.82 9.91 -0.13 0.00

SEB Eastern Europe ex Russia € 2.92 - 0.01 0.00

SEB Eastern Europe Small Cap Fund € 2.60 2.63 -0.01 0.00

SEB Hedge IC € 99.83 - 0.47 0.00

SEB Key Europe Equity L/S € 96.05 - 1.38 0.00

SEB Key Select C € 9.76 9.86 0.03 0.00

SEB Key Select I € 9.99 9.99 0.03 0.00

SEB Nordic Fund € 7.02 7.09 -0.04 0.00

SIA (SIA Funds AG) (LUX)RegulatedLTIF Alpha € 147.03 - -0.77 0.00

LTIF Classic € 259.84 - -1.24 0.00

LTIF Em.Mkt Value € 85.16 - -0.61 0.00

LTIF Natural Resources € 101.68 - -0.08 0.00

SIA (SIA Funds AG) (CH)Other International FdsLTIF Stability Growth SFr 194.80 - 3.50 0.75

LTIF Stability Inc Plus SFr 188.00 - 3.40 4.43

Fund Bid Offer D+/- Yield

SKAGEN Funds (NOR)PO Box 160, 4001 Stavanger, NorwayTel (47) 51 21 38 58 www.skagenfunds.comFSA RecognisedSKAGEN Global € 115.96 - -0.76 0.00

SKAGEN Kon-Tiki € 72.15 - -0.85 0.00

SKAGEN Vekst € 178.95 - -2.30 0.00

SKAGEN Tellus € 15.13 - -0.13 0.00

Sloane Robinson LLP (CYM)RegulatedS.R. Global Fund Inc.B-Asia $ 602.39 - 10.08 0.00

C-International $ 422.56 - 30.19 -

G1 Emerging Mkts $ 1073.71 - 9.92 0.00

H - Japan $ 97.19 - 13.81 0.00SR Phoenicia IncPhoenicia A $ 401.08 - 7.18 -

Smith & Williamson Investment Management (1200)F (UK)25 Moorgate, London, EC2R 6AY 020 7131 8100www.sandwfunds.comAuthorised Inv FundsEuropean Growth Trust A Class 400.10 - 1.60 0.85

Far East Growth Trust A Class 367.20 - -1.80 0.67

Fixed Interest Trust A Class 126.60 - 0.10 4.35

Global Gold and Resource Trust A Class 307.60 - 4.40 0.00

MM Endurance Balanced Fund 184.20 - 0.60 0.78

MM Global Investment Fund 1860.00 - 6.00 1.35

North American Trust A Class 1253.00 - 2.00 0.00

Oriental Growth Fund A Class 135.80 - -0.70 0.88

UK Equity Growth Trust A Class 304.40 - 0.80 0.96

UK Equity Income Trust A Class 189.60 - 0.80 4.68

Smith & Williamson Investment Mgmt Ltd (BMU)RegulatedBermuda Capital Co Ltd $ 305.61 - 7.54 0.45

Mid Ocean World Inv $ 459.61 - 11.80 0.19

Pancurri Investment Ltd $ 1047.74 - -2.52 0.00

Smith & Williamson Fd Admin Ltd (1200)F (UK)25 Moorgate, London, EC2R 6AY 0141 222 1150Authorised Inv FundsS&W Deucalion Fd (OEIC) 1668.00 - 22.00 1.14

S & W Magnum 313.60 331.80 0.50 1.66

S & W Marathon Trust 156.70 165.80 0.20 1.06

S&W Opportunities Fund 1153.00 - 4.00 2.08

S&W UK Growth Fund 831.80 - 0.70 2.63

Endurance Global Opportunities 165.80 - 5.00 0.07

Charity Value and Income Fund Acc 105.30 106.30 0.10 5.18

Charity Value and Income Fund Inc 79.82 80.60 0.09 5.35

SMT Fund Services (Ireland) LimitedRegulatedMonthly Dividend High Yield $ 7.24 - 0.01 0.00Daiwa Gaika MMFAU$ Portfolio A$ 0.01 - 0.00 -

US$ Portfolio $ 0.01 - 0.00 -

Euro Portfolio € 0.01 - 0.00 -

Canadian Dllr Pfolio C$ 0.01 - 0.00 -

New Zealand Dllr Pfolio NZ$ 0.01 - 0.00 -Daiwa Bond SeriesMonthly Dividend AUD Bd A$ 10.36 - -0.01 0.00

Monthly Dividend EUR Bd € 10.24 - 0.00 0.00

Monthly Dividend CAD Bd C$ 10.39 - -0.03 0.00

Mthly Div US Preferred Secs $ 7.79 - 0.01 0.00Daiwa Equity Fund SeriesNew Major Economies $ 11.64 - -0.11 0.00

Global CB $ 10.36 - 0.02 0.00

Spearpoint Limited (IRL)PO BOX 621, Yorkshire House, Le Truchot, St Peter Port Guernsey, GY1 4PH Tel: 00 44 1481 815555FSA RecognisedAll Weather I NR Acc NAV F £ 0.90 - 0.00 0.00

All Weather I NR EUR Acc NAV F € 0.92 - 0.00 0.00

All Weather R NR Acc NAV F £ 0.89 - 0.00 0.00

Defensive Cap and Inc F Non-Reporting I Shares £ 1.00 - 0.00 -

Defensive Cap and Inc F Non-Reporting R Shares £ 1.00 - 0.00 -

Defensive Cap and Inc F Reporting I Shares £ 1.00 - 0.00 -

Defensive Cap and Inc F Reporting R Shares £ 1.00 - 0.00 -

Global Equity I F Non-Reporting I Shares £ 1.01 - 0.00 -

Global Equity Inc F Reporting R Shares £ 1.01 - 0.00 -

Spearpoint ALL WEATHER (US Dollar) Fund Class I NR F $ 0.94 - 0.00 0.00

Spearpoint (EURO) Fixed Income F € 1.01 - 0.00 1.12

Spearpoint (Sterling) Fixed Income F £ 1.01 - 0.00 1.40

Spearpoint (US Dollar) Fixed Income F $ 0.98 - 0.00 1.17

Spinnaker Capital GroupOther International FundsGlobal Emg Markets Ser K1 (Est) $ 109.46 - 3.20 0.00

Global Opportunity Ser K1 (Est) $ 11.37 - -85.32 0.00

Standard Life Investments Ltd (0730)F (UK)1 George Street, Edinburgh EH2 2LL0845 279 3003Authorised Inv FundsRetail share classAAA Income Acc Retail StandardLife 88.13 - -0.30 3.07

AAA Income Inc 54.43 - -0.19 3.10

AAA Income CAT Acc 83.93 - -0.29 2.63

AAA Income CAT Inc 54.42 - -0.19 2.67

American Equity Unconstrained Acc 65.84 - -0.07 0.00

Asian Pacific Growth Acc 211.00 - 0.70 1.40

Fund Bid Offer D+/- Yield

Corporate Bond Acc 131.10 - -0.40 4.02

Corporate Bond Inc 58.54 - -0.18 4.16

Dynamic Distribution Acc 64.20 - -0.01 4.35

Dynamic Distribution Inc 50.17 - -0.01 4.48

Ethical Corporate Bond Acc 66.80 - -0.18 3.76

Ethical Corporate Bond Inc 51.90 - -0.15 3.82

Europe Ethical Equity Acc 41.79 - 0.24 2.42

European Equity Growth Acc 118.70 - 0.60 1.98

Euro Equity Income Acc 78.21 - 0.25 3.69

Euro Equity Income Inc 66.19 - 0.21 5.14

Global Absolute Return Strategies Acc 67.67 - -0.03 1.04

Global Advantage Acc 112.80 - 0.00 1.66

Global Advantage Inc 79.11 - 0.00 1.66

Global Advantage CAT Acc 84.25 - -0.01 2.01

Global Equity Income Acc 152.10 - 0.40 3.48

Global Equity Income Inc 57.85 - 0.14 -

Global Equity Unconstrained Acc 75.06 - 0.12 0.00

Global Index Linked Bond Acc 162.10 - 1.80 1.19

Global Index Linked Bond Inc 143.30 - 1.60 1.20

Global REIT Acc 38.88 - 0.05 2.26

Global REIT Inc 33.58 - 0.05 2.34

Global Smaller Companies Retail Accumulation 56.28 - -0.29 -

Higher Income Acc 103.60 - 0.10 6.76

Higher Income Inc 46.85 - 0.04 7.04

Japanese Equity Growth Acc 52.39 - 0.45 0.00

Select Income Acc 80.67 - -0.13 5.21

Select Income Inc 52.80 - -0.09 4.80

Select Property Acc 42.45 - -0.02 3.59

Select Property Inc 34.77 - -0.02 1.79

Strategic Bond Acc 72.94 - -0.09 3.21

Strategic Bond Inc 66.38 - -0.08 3.26

UK Equity Growth Acc 244.10 - 0.30 2.22

UK Equity High Alpha Retail Acc 138.40 - -0.10 3.17

UK Equity High Alpha Retail Inc 74.04 - -0.06 3.24

UK Equity High Income Acc 165.90 - 0.10 4.63

UK Equity High Income Inc 69.77 - 0.04 4.80

UK Equity Income Unconstrained Acc 47.13 - -0.02 4.61

UK Equity Income Unconstrained Inc 38.06 - -0.01 4.76

UK Equity Recovery Acc 132.60 - 1.40 0.75

UK Equity Unconstrained Acc 146.60 - 0.00 0.96

UK Ethical Acc 109.40 - 0.20 1.88

UK Gilt Acc 66.96 - -0.32 2.11

UK Gilt Inc 42.83 - -0.20 1.65

UK Opportunities Acc 140.50 - 1.20 0.95

UK Opportunities Inc 131.40 - 1.10 0.96

UK Property Trust Acc 106.30 - 0.00 3.04

UK Smaller Companies Acc 334.70 - 0.80 0.33

Stenham Asset Management IncOther International FundsStenham Universal USD (Est) $ 385.31 - 4.38 -

Stenham Universal EUR (Est) € 121.05 - 1.33 -

Stenham Universal GBP (Est) £ 132.60 - 1.52 -

Stenham Universal II USD (Est) $ 144.84 - 1.59 0.00

Stenham Universal II GBP (Est) £ 141.87 - 1.57 -

Stenham Universal II EUR (Est) € 125.42 - 1.33 -

Stenham Growth USD (Est) $ 176.95 - 2.53 -

Stenham Trading Port. (Est) $ 4796.01 - 61.55 -

Stenham Quadrant USD A (Est) $ 373.82 - 5.16 -

Stenham Quadrant USD A (Est) $ 373.82 - 5.16 -

Stenham Asia EUR (Est) € 94.39 - 2.27 -

Stenham Asia GBP (Est) £ 96.77 - 2.37 -

Stenham Asia USD (Est) $ 121.05 - 2.95 -

Stenham Gold USD $ 288.93 - -7.13 -

Stenham Multi Strategy EUR (Est) € 100.95 - 1.06 -

Stenham Multi Strategy GBP (Est) £ 104.66 - 1.15 -

Stenham Multi Strategy USD (Est) $ 105.52 - 1.15 -

Stenham Global Resources EUR € 102.66 - -0.25 -

Stenham Global Resources GBP £ 107.71 - -0.21 -

Stenham Global Resources USD $ 109.20 - -0.24 -

Stenham Managed Fund EUR (Est) € 96.70 - 1.25 -

Stenham Managed Fund GBP (Est) £ 100.78 - 1.35 -

Stenham Managed Fund USD (Est) $ 101.16 - 1.35 -

Stratton Street Capital (CI) Limited (GSY)RegulatedWonda Bond & Currency Fund (USD) $ 113.21 - -0.43 0.00

Fine Wine Geared Fund £ 0.43 - -0.01 0.00

Japanese Synthetic Warrant ¥ 168.90 - 24.53 0.00

Japan Synthetic Warrant Fund USD Class $ 2.55 - 0.33 0.00

Asia Synthetic Warrant Fund $ 4.73 - -0.14 0.00

Renminbi Bond Fund AUD Cls A A$ 114.24 - 0.19 -

Renminbi Bond Fund AUD Cls B A$ 114.12 - 0.18 -

Renminbi Bond Fund CHF Cls A SFr 121.73 - 0.14 -

Renminbi Bond Fund CHF Cls B SFr 121.48 - 0.14 -

Renminbi Bond Fund CNH Cls A CNH 122.34 - 0.18 -

Renminbi Bond Fund CNH Cls B CNH 122.06 - 0.18 -

Renminbi Bond Fund Euro Cls B € 121.77 - 0.16 -

Renminbi Bond Fund GBP Cls B £ 122.07 - 0.17 -

Renminbi Bond Fund SGD Cls B S$ 121.86 - 0.18 -

Renminbi Bond Fund USD Cls B $ 122.09 - 0.17 -

Renminbi Bond Fund YEN Cls B ¥ 12217.14 - 19.21 -

Renminbi Bond Fund USD Class $ 168.98 - 0.25 3.46

Renminbi Bond Fund GBP Class £ 163.31 - 0.24 3.49

Renminbi Bond Fund SGD Class S$ 162.03 - 0.25 3.59

Renminbi Bond Fund YEN Class ¥ 18015.00 - 31.00 0.00

Renminbi Bond Fund EUR Class € 112.49 - 0.15 3.59

Poland Geared Growth £ 0.67 - -0.05 0.00

FTfm

FINANCIAL TIMES MONDAY JANUARY 14 2013 23

Fund Bid Offer D+/- Yield

E. I. Sturdza Strategic Management Limited(GSY)RegulatedNippon Growth Fund Limited ¥ 65188.00 - -66.00 0.00

Strat Evarich Japan Fd Ltd JPY ¥ 68026.00 - 318.00 0.00

Strat Evarich Japan Fd Ltd USD $ 679.75 - 5.23 0.00

Strat Global Innovation fd Ltd EUR € 1156.57 - 16.76 0.00

Strat Global Innovation fd Ltd USD $ 1188.06 - 15.69 0.00

E.I. Sturdza Funds PLC (IRL)RegulatedStrategic China Panda Fund USD $ 2009.26 - 5.71 0.00

Strategic China Panda Fund Hedged EURO € 1975.09 - 5.21 0.00

Strategic China Panda Fund Hedged Sterling £ 1914.78 - 5.40 0.00

Strategic US Momentum and Value Fund $ 565.82 - 1.79 -

Nippon Growth (UCITS) Fund JPY Class A shares ¥ 63117.00 - -1777.00 0.00

Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 51526.00 - -1450.00 0.00

Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 53214.00 - -1498.00 0.00

Strategic Euro Bond Fund Distributing Class Shares € 1052.16 - -1.73 2.46

Strategic Euro Bond Fund Accumulating Class Shares € 1129.41 - -1.86 0.00

Strategic Emerging Europe Fund Hedged Euro Class € 1050.45 - 9.05 0.00

Strategic Emerging Europe Fund USD Class $ 1064.34 - 8.98 0.00

Strategic Europe Value Euro Class € 122.45 - -0.56 0.00

Strategic Global Bond USD Acc $ 1051.54 - 0.10 -

Strategic Global Bond RMB Acc $ 1051.25 - 1.69 -

Taube Hodson Stonex Ptnrs UT (1200)F (UK)50 Bank Street, Canary Wharf, London E14 5NTAdmin: 50 Bank Street, Canary Wharf, London E14 5NTDealing & Enquiries: 0870 870 8433Authorised Inv FundsTHS Growth & Value FundsInternationalIGV - Inc A 287.30 - 0.50 2.71

IGV - Inc B 286.80 - 0.50 1.97

IGV - Acc Y 355.30 - 0.60 2.65

IGV - Acc Z 335.70 - 0.60 1.93EuropeanEGV - Acc 204.90 - -0.40 1.24

Taylor Young Investment Mgmt (1200)F (UK)Ibex House, 42-47 Minories, London, EC3N 1DXOther desk: 08459 220044, Enquiries: 0870 607 2555Authorised Corporate Director - Capita Financial ManagersAuthorised Inv FundsTY Investment FundsTaylor Young Growth & Income Acc 196.26 - -0.37 4.12

Taylor Young Growth & Income Inc 138.03 - -0.27 4.26

CF Taylor Young Global Growth A Acc 108.06 - 0.62 1.16

CF Taylor Young Global Growth A Inc 95.09 - 0.54 0.94

The Hartford International Funds (IRL)RegulatedGbl Govt Bond (Ex Japan) Index (GBP) £ 1537.71 - -1.19 0.00

UK Corporate Bond £ 1389.63 - 2.98 0.00

Gilt £ 1432.97 - -3.52 0.00

Global Eq (Ex Japan) Index Fund ¥ 1.00 - 0.01 0.00

Global Eq (ex Japan) Class HJ4 ¥ 1.04 - 0.01 0.00

Global Eq (ex Japan) Class JP5 ¥ 0.88 - 0.01 0.00

Global Eq Ex Japan Index Fund (Hedge) ¥ 0.80 - 0.01 0.00

Gbl Govt Bond (Ex Japan) Index ¥ 0.98 - 0.01 0.00

Gbl Govt Bond (ex Japan) Class JP4 ¥ 0.96 - 0.01 0.00

Japan Equity Index Fund ¥ 0.59 - 0.01 0.00

Japan Equity Class JP3 ¥ 0.72 - 0.01 0.00

The National Investor (TNI)www.tni.aeOther International FundsUAE Blue Chip Fund AED 5.26 - 0.16 0.00TNI Funds Ltd (BMU)MENA Special Sits Fund $ 1035.69 - -10.36 0.00TNI Funds Plc (Ireland)MENA UCITS Fund $ 1049.90 - 16.85 0.00

The Nile Growth Company (LUX)RegulatedNile Growth Fd A dis $ 27.29 - -0.70 0.00

Traditional Funds (IRL)State Street International (Ireland) Limited. No. 78 Sir John Rogerson?s Quay, Dublin 2, IrelandPhone:+353 1 242 5529 Fax:+353 1 438 9528 Email:TRCInvestorServices@statestreet.comFSA RecognisedBSI Bond Opportunity Fund Eur Acc € 10.15 - 0.00 0.00

BSI Bond Opportuinty Fund USD Acc $ 10.14 - 0.00 0.00

BSI Bond Opportunity Fund CHF AccSFr 9.87 - 0.00 0.00

Credit Select A EUR Dis € 10.17 - 0.00 1.04

Credit Select A EUR Acc € 10.88 - -0.01 0.00

European Absolute Return Fund Class A Old Euro Acc € 21.54 - -0.03 0.00

European Absolute Return Cls A New Euro Acc € 11.73 - -0.02 0.00

High Income USD Dis $ 9.24 - 0.00 8.40

High Income Cls A New USD Dis $ 7.02 - 0.00 8.41

High Income Cls A New USD Acc $ 10.90 - 0.01 0.00

Global Bd (£) GBP Dis £ 13.47 - 0.03 0.00

Global Bd (£) GBP Acc £ 15.64 - 0.04 0.00

Global Bd (€) Acc € 14.25 - 0.01 0.00

Global Bd (€) Dis € 12.54 - 0.01 0.00

Global Bd ($) Acc $ 11.94 - 0.06 0.00

Global Bd ($) Dis $ 10.47 - 0.05 0.00

Global Credit A EUR Dis € 9.77 - -0.01 1.23

Global Credit A EUR Acc € 10.68 - 0.00 0.00

Real Estate Securities Cls A GBP Acc £ 12.41 - -0.04 0.00

Real Estate Securities Cls A GBP Dist £ 11.84 - -0.04 2.55

Water & Agriculture Abs Rtn USD Acc $ 12.34 - 0.02 0.00

Water & Agriculture Abs Rtn USD Dis $ 10.91 - 0.03 0.00

Emerging Asia B USD Acc $ 9.05 - 0.05 0.00

Emerging Asia B USD Dis $ 9.04 - 0.05 0.00

Global Emerging Markets USD Acc $ 15.04 - 0.05 0.00

Global Emerging Markets USD Dist $ 47.94 - 0.16 0.21

Global High Yield A Euro Acc € 10.85 - 0.01 0.00

Global High Yield A Euro Dis € 10.31 - 0.01 3.12

Global Emerging Mkt Abs Rtn A USD Acc $ 9.00 - -0.02 0.00

Fund Bid Offer D+/- Yield

Global Emerging Mkt Abs Rtn B USD Acc $ 9.11 - -0.02 0.00

Thames River CapitalState Street Fund Services (Ireland) LimitedNo. 78 Sir John Rogerson?s Quay, Dublin 2, IrelandPhone: +353 (0)1 242 5529Fax : +353 (0)1 438 9528TRCInvestorServices@statestreet.comOther International FundsHillside Apex Cls A $ 1219.13 - -56.05 0.00

Warrior Cls A (Final) $ 2507.67 - 32.47 -

Warrior Cls F (Final) $ 1043.93 - 13.51 -

Warrior II Class A (Final) $ 1244.20 - 15.46 0.00

Warrior II Class F (Final) $ 977.66 - 12.14 -

Sentinel Cls A (Final) $ 1719.74 - 5.38 0.00

Longstone Cls A € 1296.74 - -3.13 0.00

Property Growth & Inc Cls A GBP Inc £ 11.01 - -0.05 4.85

Property Growth & Inc Cls A GBP Acc £ 14.79 - -0.07 0.00

Africa Focus Class A USD (Final) $ 1119.23 - -23.14 0.00

Isis Cls A $ 7904.76 - 129.60 0.00

The Resolution Fund (1200) (UK)Tel 0870 870 8434Authorised Inv FundsUK Equity Inc Net F 121.18 - 0.12 2.41

UK Equity Acc Net F 53.52 - 0.05 2.38

UK Equity B Inc F 71.88 - 0.08 2.70

UK Income A Inc F 51.23 - 0.14 3.08

UK Income B Inc F 59.76 - 0.22 3.15

UK Income B Acc F 73.72 - 0.27 3.09

UK Balanced B Inc F 62.02 - 0.05 1.39

UK Balanced B Acc F 65.64 - 0.05 1.36

Global Yield Net B ACC F 109.10 - 0.03 1.44

Global Yield Net B INC F 106.01 - 0.02 1.43

Global Balanced Net B ACC F 112.71 - 0.13 0.19

Global Balanced Net B INC F 109.90 - 0.13 0.19

Global Growth Net B ACC F 115.72 - 0.24 0.26

Global Growth Net B INC F 109.29 - 0.23 0.27

UK EQUITY B ACC 74.67 - 0.07 2.64

Resolution Fixed Income Fund Net D £ 1.00 - 0.00 -

Resolution Global Equity Fund Net B £ 1.05 - 0.00 -

UK GROWTH FUND B ACC £ 99.83 - 0.35 0.00

UK GROWTH B INC 73.95 - 0.12 1.22

Tilney Asset Management Intl Ltd (GSY)Other International FundsThe Glanmore Property FundNAV (Susp) £ 2.24 - -0.09 12.08

B Share NAV (Susp) £ 2.24 - -0.09 12.08The Glanmore Property Dollar FundNAV (Susp) $ 1.06 - -0.03 0.00

B Share NAV (Susp) $ 0.96 - -0.04 0.00The Glanmore Property Euro Fund LimitedNAV (Susp) € 0.95 - -0.02 0.00

B Share NAV (Susp) € 0.60 - -0.04 -

Tilney Asset Management Intl LtdOther International FundsThe Glanmore Property Accumulation Fund LimitedNAV £ 0.42 - -0.01 0.00

B Share NAV £ 1.03 - -0.03 0.00

Toscafund (CYM)RegulatedTosca $ 218.86 - 5.93 0.00

Tosca Mid Cap GBP £ 151.62 - 15.98 0.00

Tosca Opportunity B USD $ 168.14 - -14.42 0.00

TreeTop Asset Management S.A. (LUX)RegulatedTreeTop Convertible SicavInternational A € 229.38 - -0.29 0.00

International B $ 296.99 - 0.00 0.00

International C £ 101.98 - -0.04 2.98

Pacific A € 263.34 - -0.73 0.00

Pacific B $ 333.41 - -0.78 0.00TreeTop Global SicavGlobal Opp.A € 115.90 - -0.04 0.00

Global Opp.B $ 121.86 - 0.55 0.00

Global Opp.C £ 148.66 - -0.21 0.00

Sequoia Equity A € 99.85 - -0.24 0.00

Sequoia Equity B $ 108.74 - 0.45 0.00

Sequoia Equity C £ 122.78 - -0.24 0.00

Sequoia Pacific Equity A € 60.58 - -0.39 0.00

Sequoia Pacific Equity B $ 67.54 - -0.36 0.00

Sequoia Pacific Equity C £ 82.51 - -0.94 0.00

Troy Asset Mgt Ltd (UK)Ibex House, 42-47 Minories, London, EC3N 1DXOrder desk: 0845 608 0950, Enquiries 0845 608 0950Authorised Inv FundsACD Capita Financial MgrsTrojan Investment FundsSpectrum Fund 'O' Acc 141.89 - 0.11 0.05

Spectrum Fund 'O' Inc 139.53 - 0.11 0.04

Trojan Fund O Acc 242.79 - 0.33 0.96

Trojan Fund O Inc 205.19 - 0.27 0.98

Fund Bid Offer D+/- Yield

Trojan Capital O Acc 156.34 - 0.52 1.21

Trojan Capital O Inc 137.79 - 0.46 1.21

Trojan Income O Acc 195.61 - 0.16 4.22

Trojan Income O Inc 139.77 - 0.11 4.36

UBS Global Asset Mgmt Fds Ltd (UK)21 Lombard Street, London, EC3V 9AHClient Services 0800 587 2113, Client Dealing 0800 587 2112www.ubs.com/retailfundsAuthorised Inv FundsOEICGlobal Emerg Mkts Eqty A Acc 328.42 - -3.76 1.46

Global Optimal A Acc 71.94 - 0.11 0.58

UBS UK Opportunities Fund 67.89 - 0.03 1.48

UK Smaller Cos A Acc 119.85 - 0.73 0.09

US Equity A Acc 88.30 - 0.65 0.00

UBS Asian Consumption Fund - A 54.45 - -0.45 0.39

UBS European Eqty A Acc 521.86 - 2.32 2.20

Active Bond A Inc Net 50.91 - 0.00 3.23

Active Bond A Inc Gross 50.75 - 0.00 3.99

UBS Targeted Return A Acc Net 103.85 - 0.46 0.38

UBS Multi Asset Income A Acc (net) 60.08 - 0.01 3.39

UBS Multi Asset Income A Inc (net) 53.48 - 0.01 3.45

UBS UK Equity Income A Acc Net 48.65 - -0.02 5.36

UBS UK Equity Income A Inc Net 35.13 - -0.01 5.39

Corporate Bond UK Plus B Acc Gross 68.33 - 0.04 4.85

UBS Global Allocation (UK) A Acc 84.60 - 0.21 1.86

UBS US Growth Fund A Acc 92.44 - 0.18 0.00

UBS Emerging Markets Equity Income A Acc 56.27 - -0.11 5.44

UBS Emerging Markets Equity Income A Inc 49.25 - -0.10 5.69

UBS Global Diversified Fund A Acc £ 0.54 - 0.00 0.00

UBS AG (LUX)291, Route d'Arion P 91, L-2010 Luxembourgwww.ubs.com/fundsFSA RecognisedUBS (CH) Equity Fund - Gold (USD) P $ 476.60 - 10.09 0.00

UBS (CH) Equity Fund - Energy (USD) P $ 306.86 - 2.11 0.21

UBS Global Emerging Market Value Focus P USD $ 117.30 - -0.57 0.00

UBS (Lux) Bond Fund - Convert Europe P-acc € 138.64 - 0.13 0.00

UBS (Lux) Bond Fund - Euro High Yield P-acc € 161.95 - 1.80 0.00

UBS (Lux) Bond Fund - Full Cycle Asian Bond (USD) P-acc $ 123.04 - 0.00 0.00

UBS (Lux) Bond SICAV - Asian Local Currency Bond (USD) P-acc $ 105.09 - 0.30 0.00

UBS (Lux) Bond SICAV - Convert Global (EUR) P-acc € 10.97 - -0.03 0.00

UBS (Lux) Bond SICAV - Short Duration High Yield (USD) P-acc $ 108.62 - 0.03 0.00

UBS (Lux) Bond SICAV - USD High Yield P-acc $ 232.58 - 0.19 0.00

UBS (Lux) Emerging Economies Fund - Global Bonds (USD) P-acc $ 1939.61 - 5.33 0.00

UBS (Lux) Emerging Economies Fund - Global Short Term (USD) P-acc $ 3013.03 - 13.04 0.00

UBS (Lux) Equity Fund - Asian Consumption (USD) P-acc $ 109.43 - -0.42 0.00

UBS (Lux) Equity Fund - Greater China (USD) P-acc $ 207.84 - -2.02 0.00

UBS (Lux) Equity Fund - Health Care (USD) P-acc $ 142.74 - 1.09 0.00

UBS (Lux) Equity SICAV - Russia (USD) P-acc $ 113.02 - 0.09 0.00

UBS (Lux) Equity SICAV - USA Growth (USD) P-acc $ 18.04 - 0.10 0.00

UBS (Lux) Key Selection SICAV - Global Allocation Focus Europe (EUR) P-acc € 10.08 - -0.02 0.00

UBS (Lux) SICAV 1 - All Rounder (USD) P-acc $ 142.71 - 0.54 0.00Pls contact your adviser for funds in other currencies or for add.

UOB Global Strategies Funds Plc (IRL)RegulatedUOB Asian Equity $ 219.22 - 1.00 0.00

UOB Greater China $ 235.46 - 1.61 0.00

UOB Paradigm Fund Class A (Eur) € 154.00 - 0.18 0.00

UOB Paradigm Fund Class B (USD) $ 193.01 - 0.26 0.00

UOB Paradigm Fund Class C $ 124.29 - 0.17 0.00

UOB Paradigm Fund Class D $ 121.67 - 0.17 0.00

UOB US Equity Fund $ 161.21 - -0.29 0.00

UOB Global Opportunities Fund $ 116.72 - -0.02 0.00

UOB Strategic Allocation Fund USD $ 102.96 - 0.61 0.00

Unicapital Investments (LUX)RegulatedInvestments III € 146.01 - -3.06 0.00

Investments IV - European Private Eq. € 430.45 451.97 -10.20 -

Investments IV - Global Private Eq. € 597.10 626.96 -78.89 -

Unicorn Asset Management Ltd (UK)PO Box 10602, Chelmsford, Essex, CM1 9PD 0845 026 4287Authorised Inv FundsFree Spirit A Inc F 293.45 - 0.67 0.00

Mastertrust A Inc F 275.93 - 0.87 0.00

Free Spirit B Inc F 291.70 - 0.67 0.03

Mastertrust B Inc F 245.92 - 0.78 0.00

Outstanding British Cos A Acc F 183.87 - 0.07 0.50

Outstanding British Cos B Acc F 188.44 - 0.07 0.98

UK Smaller Cos A Inc F 265.63 - 0.40 0.60

UK Smaller Cos B Inc F 259.63 - 0.39 0.84

UK Income A Inc F 181.87 - 0.52 3.97

UK Income B Inc F 189.04 - 0.55 3.95

Value Partners Hong Kong Limited (IRL)www.valuepartners.com.hk / vpl@vp.com.hkRegulatedVP Absolute Greater China Classic Fund $ 11.55 - -0.08 -

Veritas Asset Management (UK) Limited (IRL)HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, IrelandVeritas Funds Plcwww.veritas-asset.com+353 1 635 6799FSA RecognisedInstitutionalVeritas Asian Fund A USD H $ 262.25 - -1.26 1.12

Veritas Asian Fund A GBP H £ 304.68 - -2.52 1.14

Veritas Asian Fund A EUR H € 230.31 - -3.75 1.18

Veritas China Fund A USD $ 115.28 - -1.18 0.61

Fund Bid Offer D+/- Yield

Veritas China Fund A GBP £ 116.94 - -0.96 0.00

Veritas China Fund A EUR € 114.58 - -1.16 0.43

Veritas Global Equity Income Fund D USD $ 131.04 - 0.28 -

Veritas Global Equity Income Fund D EUR € 191.50 - -1.77 -

Veritas Global Equity Income Fund D GBP £ 158.25 - -0.21 -

Veritas Global Focus Fund D USD $ 20.59 - 0.07 -

Veritas Global Focus Fund D EUR € 15.63 - -0.12 -

Veritas Global Focus Fund D GBP £ 21.62 - 0.00 -

Veritas Global Focus Fund A GBP £ 20.89 - -0.01 1.48

Veritas Global Focus Fund A EUR € 9.09 - -0.08 1.57

Veritas Global Focus Fund A USD $ 19.80 - 0.06 1.49

Veritas Global Focus Fund C GBP £ 21.68 - -0.01 0.00

Veritas Global Focus Fund C EUR € 15.71 - -0.13 0.00

Veritas Global Focus Fund C USD $ 20.63 - 0.06 0.00

Veritas Global Equity Income Fund A GBP £ 152.79 - -0.20 4.48

Veritas Global Equity Income Fund A EUR € 187.62 - -1.74 4.52

Veritas Global Equity Income Fund A USD $ 126.95 - 0.27 4.47

Veritas Global Equity Income Fund C GBP £ 160.12 - -0.21 -

Veritas Global Equity Income Fund C EUR € 196.72 - -1.82 -

Veritas Global Equity Income Fund C USD $ 132.51 - 0.29 -

Veritas Global Real Return Fund A USD $ 17.78 - -0.01 0.96

Veritas Global Real Return Fund A GBP £ 9.70 - -0.01 0.83

Veritas Global Real Return Fund A EUR € 4.52 - -1.10 0.00RetailVeritas Asian Fund B USD $ 185.10 - -0.89 0.69

Veritas Asian Fund B GBP £ 223.93 - -1.86 0.35

Veritas Asian Fund B EUR € 168.66 - -2.75 0.68

Veritas China Fund B USD $ 121.13 - 0.31 0.00

Veritas China Fund B GBP £ 113.62 - -1.16 0.14

Veritas China Fund B EUR € 115.15 - -0.91 0.00

Veritas Global Focus Fund B USD $ 14.34 - 0.05 0.90

Veritas Global Focus Fund B GBP £ 15.98 - 0.00 0.92

Veritas Global Focus Fund B EUR € 10.85 - -0.08 1.89

Veritas Global Equity Income Fund B GBP £ 142.71 - -0.18 4.50

Veritas Global Equity Income Fund B EUR € 174.76 - -1.62 4.53

Veritas Global Equity Income Fund B USD $ 127.86 - 0.27 4.49

Veritas Global Real Return Fund B USD $ 17.24 - -0.01 0.59

Veritas Global Real Return Fund B GBP £ 9.60 - -0.01 0.47

Veritas Global Real Return Fund B EUR € 11.29 - -0.01 0.42

Veritas Asset Management (UK) Limitedwww.veritas-asset.comOther International FundsReal Return Asian Fund USD (Est) € 243.50 - 3.30 0.00

Real Return Asian Fund GBP (Est) £ 258.03 - 3.61 0.00

Real Return Asian Fund EUR (Est) $ 253.40 - 3.56 0.00

Victory Capital LtdOther International FundsVictory Capital Ltd A GBP (Est) £ 135.30 - 0.90 -

Virgin Money Unit Trust Managers Limited (1700)F (UK)Discovery Hse, Whiting rd, Norwich NR4 6EJ 08456 102030Authorised Inv FundsVirgin UK Index Tracking Trust 215.50 - 0.80 3.00

Virgin Income Trust 119.50 - 0.10 1.24

Virgin Pension Growth Fund 233.00 - 0.90 2.93

Virgin Pension Income Protector Fund 243.60 - 0.20 3.16

Virgin Climate Change Fund 84.11 - 0.38 0.00

Waverton Investment Funds Plc (1600)F (IRL)waverton.investments@citi.comFSA RecognisedAsia Pacific B USD $ 18.81 - -0.08 0.91

European Fund B Eur H € 9.69 - 0.00 1.00

Global Bond Fund Cls A $ 10.01 - 0.02 4.71

Global Equity Fund B GBP H £ 5.58 - 0.00 0.00

JOHIM Equity Fund GBP £ 11.54 - 0.05 0.00

JOHIM Sterling Bond Fund A GBP £ 10.36 - 0.01 4.97

Waverton Abs. Fund GBP £ 10.13 - 0.00 0.32

UK Fund B GBP H £ 10.93 - 0.02 2.59

Wesleyan Assurance Society (UK)Colmore Circus, Birmingham, B4 6AR 0121 200 3003InsurancesManaged Fd £ 10.90 11.45 0.06 -

Pens Managed Fd 798.80 838.80 -0.40 -

Pens Managed Fd Ser 2 £ 7.78 7.78 0.00 -

Wesleyan Unit Trust Managers Ltd (1200)F (UK)PO Box 6052 Basildon SS15 5ZS 0870 601 6129Authorised Inv FundsGrowth Trust 278.92 292.90 0.31 2.75

Cash Fund 147.62 - 0.01 0.48

International Trust 119.64 125.49 0.35 0.92

WA Fixed Income Fund Plc (IRL)RegulatedEuropean Multi-Sector € 114.41 - -0.28 0.00

WDB Asset Management Limited (1200)F (UK)100 Wood Street, London, EC2V 7AN Tel: (0870) 606 6400Authorised Inv FundsWDB Balanced Portfolio Fund Inst-Inc 142.01 - 0.44 3.35

WDB Balanced Portfolio Fund Ret-Inc 126.77 - 0.38 3.37

WDB European Fund Inst-Inc 278.48 - 1.23 1.48

WDB European Fund Ret-Inc 276.99 - 1.21 0.72

WDB Fixed Income Fund Ret-Inc 118.17 - 0.06 4.93

WDB Global Fund Ret-Acc 141.40 - 0.43 0.18

WDB Global Fund Ret-Inc 141.17 - 0.43 0.18

WDB UK Fund Ret-Inc 304.06 - 0.36 1.91

Williams de Broë Assetmaster Fund Plc (IRL)Comore Plaza, Colmore Circus, Birmingham, B4 6AT 0044 121 2320726FSA RecognisedAssetmaster Growth Fund £ 1.69 - 0.01 0.00

Assetmaster Cautious Fund £ 1.41 - 0.00 0.00

Assetmaster Balanced Fund £ 1.42 - 0.01 0.00

Assetmaster Intl Growth Fund £ 1.64 - 0.01 0.00

Multi Strategy Fund H £ 1.87 - 0.01 0.00

Fund Bid Offer D+/- Yield

Chameleon Capital H £ 1.14 - 0.01 0.00

Winton Capital ManagementOther International FundsWinton Futures USD Cls B $ 820.60 - 10.98 0.00

Winton Futures EUR Cls C € 231.03 - 2.98 0.00

Winton Futures GBP Cls D £ 250.57 - 3.32 0.00

Winton Futures GBP Cls F £ 96.61 - 1.27 0.00

Winton Evolution USD Cls F (Est) $ 1292.13 - -32.83 0.00

Winton Evolution EUR Cls H (Est) € 1019.38 - -26.06 0.00

Winton Evolution GBP Cls G (Est) £ 1025.90 - -26.05 0.00

Winton Futures JPY Cls E ¥ 16055.33 - 220.68 0.00

World Trust Fund (LUX)RegulatedShares NAV £ 2.29 - 0.01 0.00

Xanthos Asset Management LtdOther International FundsXanthos Capital USD $ 916.03 - 19.98 0.00

Xanthos Equities USD $ 961.88 - 23.51 0.00

Xanthos Investment Partners USD $ 2574.20 - 46.74 0.00

Yuki International Limited (IRL)Tel +44-207-269-0203 www.yukifunds.comRegulatedYuki Mizuho Umbrella FundYuki Mizuho General Japan III ¥ 2231.00 - -194.00 0.00

Yuki Mizuho Japan Dynamic Growth ¥ 3936.00 - 42.00 0.00

Yuki Mizuho Japan General ¥ 8061.00 - 89.00 0.00

Yuki Mizuho Japan Excellent 100 ¥ 6465.00 - 74.00 0.00

Yuki Mizuho Japan Growth ¥ 5656.00 - 84.00 0.00

Yuki Mizuho Japan Income ¥ 7340.00 - 81.00 0.00

Yuki Mizuho Japan Large Cap ¥ 4594.00 - 45.00 0.00

Yuki Mizuho Japan Low Price ¥ 10901.00 - 71.00 0.00

Yuki Mizuho Japan Pure Gwth ¥ 6576.00 - 70.00 0.00

Yuki Mizuho Japan Small Cap ¥ 7213.00 - 11.00 0.00

Yuki Mizuho Japan Value Select ¥ 5374.00 - 43.00 0.00YMR Umbrella FundYMR N Growth ¥ 9120.00 - 108.00 0.00Yuki Chugoku Umbrella FundYuki Chugoku Japan General ¥ 6764.00 - 41.00 0.00

Yuki Chugoku Japan Low Price ¥ 6513.00 - 86.00 0.00Yuki 77 Umbrella FundYuki 77 General ¥ 5530.00 - 84.00 0.00Yuki Hokuyo Umbrella FundYuki Hokuyo Japan General ¥ 4316.00 - 54.00 0.00

Yuki Hokuyo Japan Income ¥ 4890.00 - 16.00 0.00

Yuki Hokuyo Japan Small Cap Fund ¥ 5504.00 - 13.00 0.00Yuki Asia Umbrella FundYuki Japan Rebounding Growth Fund ¥ 9656.00 - 156.00 0.00

Zadig Gestion (Memnon Fund) (LUX)FSA RecognisedMemnon European Fund I GBP £ 107.39 - -0.15 0.00

Zebedee Capital Partners LLP (CYM)RegulatedZebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00

Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00

Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00

Money MarketTrusts andBank Accounts

Gross NetGrossAER Int Cr

CAF Bank Ltd

PO Box 289 Kings Hill, West Malling, Kent ME19 4JQ 03000 123456CAF Gold £1 – £249,999.......... 0.20 - 0.20 QtrCAF Gold £250,000 – £499,999... 0.40 - 0.40 QtrCAF Gold Balances £500,000 – £999,999. 0.60 - 0.60 QtrCAF Gold Balances £1 Million and above... 1.00 - 1.00 QtrPlatinum 30 Day Notice 1.20 - 1.20 QtrCAF Cash 0.10 - 0.10 Qtr

CCLA Investment Management Ltd

Senator House 85 Queen Victoria Street, London EC4V 4ETCBF Church of England Deposit Fund 0.75 - 0.75 QtrCOIF Charities Deposit Fund 0.75 - 0.75 Qtr

Data Provided by Morningstar

www.morningstar.co.ukData as shown is for information purposes only. Nooffer is made by Morningstar or this publication.

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24 FINANCIAL TIMES MONDAY JANUARY 14 2013

A re investors repeat-ing the mistake ofGordon Brown,

prime minister when theBritish economy was sunkby the financial crisis? Aslate as 2007, with the sub-prime collapse under way,the then chancellor prom-ised the UK would “neverreturn to the old boom andbust”.

Well, the bust happened.But the boom has beensadly absent, not just inthe UK but across most ofthe developed world.Growth, if at all, has beenbarely above stall speed –and investors are posi-tioned for more of thesame, holding governmentand corporate bonds andbond proxies such as safe-looking, dividend-yieldingshares.

Perhaps, some are nowstarting to wonder, thiscould be the year the eco-nomic cycle returns – butin a good way. If it does,investors are positionedentirely wrongly, in a mir-ror image of 2007.

If it happens, it will bebecause of central banks.Monetary conditions areabout as easy as they haveever been. The UK bench-mark real yield, from the10-year inflation-linked gilt,hit a record low last weekof almost minus 1 per cent,a little below zero whenadjusted for statistical odd-ities in the retail pricesindex. In the US, realyields stand at minus 0.7per cent.

Even with hints of scep-ticism about loose mone-tary policy in the US Fed-eral Reserve’s latest min-utes, and more upbeatcomments on the economyfrom the European CentralBank last Thursday,changes under way suggestrates will be lower forlonger.

The Fed has switched itsfocus to unemployment,rather than inflation. Jobsare a lagging indicator, sothis implies policy willstay looser as the economystrengthens. In the UK,Mark Carney, soon to beBank of England governor,has raised the idea of tar-getting the level of nomi-nal GDP instead of infla-tion. If implemented (a bigif) this would also meankeeping rates lower duringa recovery. The European

Central Bank has promisedto buy government bondsif fears of a euro exitreturn. And in Japan thecentral bank is underintense pressure from thenew government to takemore radical action to cre-ate inflation.

Signs of this flood ofhigh-powered money help-ing the economy are tenta-tive, at best, with broadmoney supply growth stillslow, although picking up.

US housing has finallystarted to improve, mort-gage rates have never beenlower and banks are talk-ing about increasing lend-ing, while unemploymenthas been coming down. Yetprices in Las Vegas, forexample, have recoveredonly to where they stoodin 2000, while Credit Suissepoints out that new con-struction permits are backdown to the lows reachedin the 1960s, 1970s andearly 1990s recessions.

Economists expect mostdeveloped economies toweaken, too. ConsensusEconomics says averageforecasts for the US, euro-

zone and Japan are all forweaker growth this yearthan last. The UK is pre-dicted to recover some-what, but only to a misera-ble 1.1 per cent expansion.

With a few notableexceptions, Wall Streetstrategists are bullish onequities. But their recom-mendations in the mainare to buy reliable divi-dend-yielders, not the cycli-cal stocks which wouldbenefit most from signs ofa stronger recovery.

Few are prepared formonetary policy to start tobite in the real economy.David Bowers at AbsoluteStrategy Research says thismakes a recovery the bigdanger for investors in2013. He does not expectthe bond market to breaksoon, because of supportfrom central banks. But hethinks this could be theyear when the equity mar-ket rotates out of highly-priced defensive stocks andinto cheap cyclical bets.

It is unclear whether thiswould lead to higher orlower prices for shares ingeneral. A slow rise inbond yields leading to asteady shift into equities –as seen last week – wouldbe good for stock markets;but if the bond marketbreaks suddenly it could

start a panic, as in 1994.Alternatively, if bondsremain supported and theshift is merely betweensectors within equities, itcould be neutral for thebroad market.

Of course, all thisdepends on a far-from-consensus belief that cen-tral banks can do enoughto offset the austerity

under way in the US andEurope. Even if the UShousing market is recover-ing, there is little evidenceof how Americans arelikely to react, followingtheir experience of nega-tive equity. In the UK afterthe 1990-1995 house pricecrash, property did notbounce back suddenly. Justas in the US now, it took

six years from the peak forprices to start growingagain; but when they did,they grew at just 3 per-centage points more thaninflation for the next threeyears. That would help UShouseholds, but may notbe enough of a boost tokick-start US consumption.

Finally, there is the dan-ger of “policy error”: cen-

tral banks might prove tobe more frightened of infla-tion than we think. Thiswould hurt bonds, butunexpected tighteningwould also hurt shares.During 1994’s surprise Fedrate hikes shares beatbonds, but both lostmoney.

james.mackintosh@ft.com

Any upturn will not help investors

JamesMackintoshTHE LAST WORD

If the cycle returns,investors arepositioned entirelywrongly, in a mirrorimage of 2007

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