FinanTimesEU20110927

Big auditf irms faceBrusselsonslaught

By Alex Barker in Brusselsand Jennifer Hughes in London

The business model of the BigFour accounting firms is underattack from the European Com-mission, which is pushing fortough rules to force the firms toabandon their consultancy busi-nesses and share audit workwith smaller rivals.

A draft regulation, seen by theFinancial Times, aims to restore“trust” in financial reporting inthe wake of the 2008 crisis. It isbeing backed by Michel Barnier,internal market commissioner,whose officials argue the auditprofession is in the grip of anoligopoly.

Under the plans, to beunveiled in November, compa-nies with balance sheets greaterthan €1bn would be forced tohire two auditors to conduct a“joint-audit” of their books,including at least one firm otherthan the Big Four of Deloitte,PwC, Ernst & Young andKPMG.

Auditors would also be out-lawed from working for a bigcompany for more than nineyears – a policy of “mandatoryrotation” that Mr Barnier thinkswould stimulate competition.Some big multinationals havehad the same auditor for morethan a century.

Non-audit work is describedby the Commission as “a sourceof conflict of interest”. The draftsays: “Audit firms of significantdimension should . . . not be

allowed to undertake other serv-ices unconnected to their statu-tory audit function such as con-sultancy and advisory services.”

The ban would strike at theheart of the Big Four’s businessmodels and go much furtherthan expected in reshaping theindustry. But Mr Barnier willface an uphill battle to win theapproval of European Unionmember states and the Euro-pean parliament, necessary toenact the rules.

Deloitte said the measureswould “harm audit quality” anddrive up costs for companies.

John Griffith-Jones, UK seniorpartner of KPMG, said he hopedregulators would take intoaccount the firms’ expertise. “Itdepends on how you see audi-tors. If you think we’re a bit likethe privatised coal miners of the1910s, then you’d want tonationalise us,” he said. “If youthink we’re more like doctors,with an expertise in what we do,then you may want to listen toour views on these issues.”

Mr Barnier’s team believesthat the conflicting commercialinterests of the big firms haveeroded trust, stifled competitionand compromised the scepticismof the accounting profession.

“Auditors play an essentialrole in financial markets: finan-cial actors need to be able totrust their statements,” MrBarnier told the FT.

He said his “ambitious” pro-posals would have one mainobjective, “ensuring robust andcompletely independent auditsin the wider context of a betterfunctioning internal market foraudit services”.

On the back foot, 7www.ft.com/lex

Push for Big Four toabandon consultancyDraft rule seeks toforce sharing of work

Selling wave knocksmetals’ prices lowerA wave of selling by investorsfrom Chinese speculators towestern hedge funds sparkedsome of the most violent priceswings in metals in memory.Report and The Short View, Page15; Gold haven succumbs, Page 27

Hungary mortgage ireBanks and governments havewarned Hungary that its movesto help holders of Swiss francmortgages is “expropriation”and they have urged Brusselsto probe what they claim is abreach of EU rules. Page 4

Coke prefers ChinaCoca-Cola sees the US as a lessfriendly business environmentthan China, citing politicalgridlock and an antiquated taxstructure as reasons that itshome market has become lesscompetitive. Page 15; Sweet onCoke, Page 17; www.ft.com/vftt

BP plans new gas lineGroup is planning a pipeline totransport gas from Azerbaijan –a new entrant in the contest tocut Europe’s dependence onRussian gas. Page 3

Buffett to buy backWarren Buffett-run group willfor the first time buy back itsown shares, as the famed stockinvestor declared the marketvalue of his own company tobe extremely cheap. Page 15;www.ft.com/lex

French left celebratesThe Socialist party’s firstmajority in France’s senatesince 1958 is seen as a signthat President Nicolas Sarkozyis on the retreat in the fightfor the presidential election inseven months’ time. Page 4

India poverty concernsIndia’s prime minister faces apolitical storm over how tomeasure poverty amid fearsthat proposed benchmarkscould see many poor peoplelose welfare benefits. Page 2

US shutdown fearsUS Congress is locked in astandoff over disaster-relieffunding, raising the spectre ofa government shutdown andagain exposing the dysfunctionin US politics. Page 5

Alarm over real’s slideThe decline in Brazil’s real hasbeen so fast that analysts arequestioning whether Brazil willbe forced to end its so-calledcurrency war. Page 2

Nobel winner diesNobel Peace Prize winnerWangari Maathai, Kenyanenvironmental activist andhuman rights campaigner, hasdied of cancer aged 71. Page 6

VWMAN deal approvedEurope’s biggest carmaker wonEU clearance to take overGerman truckmaker MAN,obtaining antitrust approvalwithout the need for asset salesor other remedies, Brusselssaid. www.ft.com/automobiles

UK business in focusThe leader of the oppositionLabour party will today call fora crackdown on business “assetstrippers”. www.ft.com/uk; PhilipStephens, Page 9;

News Briefing

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Sep26 prev %chg

S&P500 1145.65 1136.43 +0.81

NasdaqComp 2484.54 2483.23 +0.05

DowJonesInd 10923.75 10771.48 +1.41

FTSEurofirst300 897.58 882.18 +1.75

EuroStoxx50 2083.35 2026.03 +2.83

FTSE100 5089.37 5066.81 +0.45

FTSEAll-ShareUK 2637.46 2626.98 +0.40

CAC40 2859.34 2810.11 +1.75

XetraDax 5345.56 5196.56 +2.87

Nikkei 8374.13 8560.26 -2.17

HangSeng 17407.8 17668.83 -1.48

FTSEAllWorld$ (u) 182.57 -

COMMODITIES

Sep26 prev chg

OilWTI$Nov 80.24 79.85 0.39

OilBrent$Nov 103.94 103.97 -0.03

Gold$ 1,657.88 1,735.80 -77.92

price yield chg

USGov10yr 102.00 1.90 0.09

UKGov10yr 111.70 2.42 0.06

GerGov10yr 103.92 1.82 0.07

JpnGov10yr 101.06 0.98 0.00

USGov30yr 114.78 3.00 0.12

GerGov2yr 100.58 0.45 0.05

Sep26 prev chg

FedFundsEff 0.08 0.08 -

US3mBills 0.02 0.01 0.01

EuroLibor3m 1.49 1.49 -

UK3m 0.89 0.89 -

Pricesarelatestforedition

Sep26 prev

$per€ 1.347 1.352

$per£ 1.555 1.544

£per€ 0.866 0.876

¥per$ 76.4 76.3

¥per£ 118.7 117.7

$index 79.3 79.1

SFrper€ 1.217 1.221

Sep26 prev

€per$ 0.742 0.740

£per$ 0.643 0.648

€per£ 1.154 1.142

¥per€ 102.9 103.1

£index 79.4 78.7

€index 93.34 93.80

SFrper£ 1.404 1.394

STOCK MARKETS CURRENCIES INTEREST RATES

World Markets

Crisis countdown

With choices on Greece and thefuture of the euro that must besettled within weeks, eurozonegovernments are contemplatingonce unthinkable proposals forfiscal union and sharedresponsibility for sovereign debt.European Union leaders hopethey will have put in place newpowers for the eurozone’s€440bn rescue fund in time fora summit in October, but stillhave to settle many differences.

Reports & analysis, Pages 4,9 and 11; Lex, Page 14

S&P hit by threat of civil chargesover its rating of $1.6bn CDO

By Kara Scannell andShannon Bond in New York

US regulators have warnedStandard & Poor’s that theymay file civil charges againstthe credit rating firm, allegingthat it violated federal securitieslaws in connection with its rat-ing of one of the structuredfinance instruments at the heartof the financial crisis.

McGraw-Hill, S&P’s owner,said it had received a so-calledWells notice from the Securitiesand Exchange Commission onSeptember 22 concerning its rat-ing of a $1.6bn deal known asDelphinus CDO 2007-1. Such col-lateralised debt obligations bun-dle together debts and slicethem into tranches of varyingreturn and risk.

The Wells notice marks the

first time the SEC has sought topursue charges against a ratingfirm in connection with its rat-ing of a CDO, linked to pools ofresidential mortgages.

Such a notification allows thecompany to address regulators’concerns before the SEC bringsformal charges. “S&P has beenco-operating with the commis-sion in this matter and intendsto continue to do so,” McGraw-Hill said. The SEC may seekmonetary penalties.

S&P has also come under SECscrutiny for its decision todowngrade US debt in August.

Delphinus was structured atthe request of Illinois hedgefund Magnetar Group byMizuho International, a unit ofJapanese bank Mizuho Finan-cial Group. Delaware AssetManagement served as collat-eral manager on the deal.

Rating agencies have beenunder scrutiny for issuing theirsafest rating, triple A, to mort-

gage-related securities, many ofwhich were downgraded onlymonths later and went intodefault after the housing bubbleburst. A probe by the US SenatePermanent Subcommittee onInvestigations found that theoriginal ratings on many CDOswere “deeply flawed”.

The SEC is looking at whatS&P knew about the housingmarket when it issued the rat-ings and whether it misledinvestors who bought the prod-uct, say people familiar with thematter. S&P gave triple A rat-ings to parts of the DelphinusCDO that closed on July 19 2007,according to the Senate report.Nine days earlier, S&P put$7.35bn of residential mortgage-backed securities on creditwatch, beginning a series ofdowngrades. The Senate reporthighlights Delphinus as a “strik-ing example” of a deal that wasdowngraded a few months afterits initial high-quality rating.

US regulators issueWells notice warning

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Separate sectionFederal ExchangeCurrency trading soars

Check the box for abillion dollar tax breakTax Wars, Page 16

The euro’s saviour?Crunch time for Angela Merkel. Analysis, Page 9

EUROPE Tuesday September 27 2011

By Charles Clover,Catherine Belton andCourtney Weaver in Moscow

Dmitry Medvedev, Russian pres-ident, sacked the country’sfinance minister on Monday, inthe clearest sign that a dealbetween Mr Medvedev andprime minister Vladimir Putinto swap jobs next year is pro-voking a furious backlash inMoscow political circles.

Alexei Kudrin, the financeminister, had said at the week-end he would refuse to serveunder Mr Medvedev if the latterbecame prime minister. In dis-missing the mutinous minister,Mr Medvedev sought to demon-strate that he still had author-ity, analysts said – despite thehumiliation of preparing tostand aside as president infavour of Mr Putin.

Mr Kudrin, a fiscal conserva-tive, is respected by investorsand credited with seeing Russiathrough the 2008-09 financial cri-sis. “Kudrin was a stabilisinginfluence,” said Chris Weafer,chief strategist for Troika Dia-log, a Moscow investment bank.

The two men faced off at ameeting of a government com-mission in the town of Dmitrov-grad. Mr Medvedev told MrKudrin that his statement onSaturday appeared “improper”.

“Nobody has revoked disci-pline and subordination . . . If,Alexei Leonidovich, you disa-gree with the course of the pres-ident, there is only one courseof action and you know it: toresign.”

Mr Kudrin responded with ajibe: “I will take a decision onlyafter having consulted theprime minister.”

Hours later Mr Medvedev’sspokesperson announced MrKudrin’s departure for reasons“that were laid out clearly inthe commission meeting”.

The humiliating public swipefrom Mr Kudrin is a measure ofhow far Mr Medvedev’s author-ity has eroded since announcingthat he will stand down.

Mr Putin clearly did not standin the way of Mr Kudrin’s sack-ing as, according to Russia’sconstitution, the prime minis-ter’s agreement is required forthe president to fire ministers.

Feeling the pain, Page 3

Medvedev fires mutinous financeminister after clash over leadership

Inside job: a presidential souvenir on display at a shop in St Petersburg yesterday Reuters

SEPTEMBER 27 2011 Section:FrontBack Time: 26/9/2011 - 20:29 User: robertss Page Name: 1FRONT EUR, Part,Page,Edition: EUR, 1, 1

2 ★ FINANCIAL TIMES TUESDAY SEPTEMBER 27 2011

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As debate rages in the USand Britain over top-endtax rates, Japaneseauthorities appear to beadopting a differentapproach: soak the rich,quietly.

Big earners in Japanalready face a top marginalincome tax rate of 50 percent – the level found soobjectionable by manyBritish Conservative MPs.However, Tokyo officialsplan to dun the wealthywith a temporary taxsurcharge to fundreconstruction of areasdevastated by the tsunamion March 11.

Although their plan stillfaces political obstacles,Japanese policymakershave at least managed toavoid the accusations of“class warfare” that havebeen levelled at USpresident Barack Obamaover his effort to increasetaxes on the wealthiestcitizens.

The redistributiveelement of Japan’sreconstruction tax proposalis buried safely in thesmall print. While thegovernment has proposed aflat 5.5 per cent surchargeon income tax, thedeductions that slash thestandard bill for lower-income payers mean it isthe better-heeled who willreally pay.

For a family with twochildren on a single annualsalary of Y5m ($65,500) ayear – a level close to themedian – the government’stax panel estimates theextra cost of the 5.5 percent rise at a mere Y4,300a year. However, a similarfamily earning Y10mannually would pay anextra Y36,700, and one onY100m would have tostump up Y1.84m.

This means thetemporary increase marksa small but potentiallyimportant turning point inthe trend of recent decadestowards lower income taxrates on Japan’s rich.

Such a turnround shouldnot be a surprise. TheJapanese once boasted oftheir creation of a “nationof middle class”, butfalling average wages anda shift towards temporaryand contract employmenthave largely destroyed thepost-war dream of “job-for-life” salaryman security.

Worries about incomeinequality were one factorin the rise to power in 2009of the left-of-centreDemocratic Party of Japan.Mainstream politicaldiscussion is dominated bytalk of how to ease thetravails of a “squeezedmiddle” rather than ofways to cultivate “wealth

creators” by coddling thebetter-off.

Some say that many ofJapan’s richest pay lessthan their fair share of tax.This was a perceptionfuelled by revelations in2009 that the primeminister at that time,Yukio Hatoyama, hadfailed to pay the requiredtax on more than Y1bn infunds given to him by hisheiress mother over sixyears.

Mr Hatoyama eventuallyhanded over hundreds ofmillions of yen in overduetax. But forgiving officialsgave some of the moneyback because the statute oflimitations for paymenthad expired.

Wealthy taxpayers wouldbe wise not to make toomuch of a fuss about thetemporary increases. Afterall, the tsunamireconstruction surcharge isstill only a tweak to a taxsystem that captures theequivalent of just 17 percent of gross domesticproduct – one of the lowestlevels among advancedeconomies.

It would be seen as poortaste to oppose a taxincrease intended to easethe suffering of theresidents of the strickennorth-east, whose stoicism

in the face of the March 11disaster drew worldwideadmiration.

One of the bestarguments for higher taxeson the rich is theirpotential to reinforcepublic confidence that allincome groups are sailingin the same national boat.

Japan, after all, is still anation mercifully free ofthe kind of crime-riddenno-go zones that mar someUS cities or the riots thatraged across Englishcommunities this summer.

Yoshihiko Noda, theprime minister, hassuggested that social calmis not guaranteed, sayingthis month that the dismayof people who fall out ofthe middle class could“eventually turn to despairand then to anger, andthen the collapse of thestability of the Japanesesociety from its core”.

Many top-rate taxpayersare no doubt still hopingthat worries about afaltering economic recoverywill at least force thepostponement of thetemporary tax rises.However, Japan’s direfiscal trends meangenerally higher taxes areall but inevitable.

This will not be the lastattempt to ensure that therich pay more.

Read other reports,www.ft.com/globalinsight

Tokyo tacklestaxing issue tofund tsunamireconstruction

Wealthy taxpayerswould be wise notto make too muchof a fuss about thetemporary rises

GLOBAL INSIGHT

Mure Dickiein Tokyo

By James Lamontin New Delhi

Manmohan Singh faces agrowing political storm asIndia’s prime minister overhow to measure povertyamid fears that benchmarksproposed by a powerful poli-cymaking body could seemany of the poor lose theirwelfare benefits.

The poverty line esti-mates in India, traditionallyworked out by calorieintake, are highly sensitivebecause as many as 400mIndians live on less than $2a day. Those below the pov-erty line are entitled to sub-sidised food and other wel-fare payments.

But new benchmarks bythe Planning Commission,submitted in an affidavit tothe Supreme Court as partof food security legislation,suggest that a person livingon more than Rs32 ($0.64) aday in urban areas, such asNew Delhi and Mumbai,would no longer be classi-fied as being below the pov-erty line.

The threshold for ruralareas would be Rs26 a day.In comparison, the WorldBank’s poverty line is $1.25a day.

India is now home tomore poor people than theentire sub-Saharan Africaregion. Two years ago, agovernment-appointed com-mission estimated that onein three Indians lived belowthe poverty line.

The commission’s esti-mate was higher than anearlier Planning Commis-sion estimate of 28 per centof the population. But Mon-tek Singh Ahluwalia, arespected economist who isnow the Planning Commis-sion’s deputy chairman, hasargued that up-to-date datawill show that India hasmade considerable progressin reducing poverty levels.

The proposed benchmarks

have angered leaders acrossIndia’s political spectrum.They have also seen India’stwo most respected govern-ment economists – MrSingh and Mr Ahluwalia –face criticism that they areout of touch with the poorin India, who are strugglingwith the highest inflation ofany large emerging market.

Yashwant Sinha, a formerfinance minister andBharatiya Janata partyleader, lambasted povertythreshold estimates put for-ward by the Planning Com-mission as “laughable”.

Mr Sinha derided the cal-culations as having exposedMr Singh, who cuts an evermore isolated figure in hiscabinet after a year battlinghigh-profile scandals, asinsensitive to what was “a

matter of life and death” formany people and the causeof violence across India.

“Neither the prime minis-ter nor the deputy chair-man of the Planning Com-mission has any real idea ofpoverty,” Mr Sinha said.“They rarely go to the vil-lages and interact with thepoor.”

The benchmarks havealso divided the PlanningCommission itself. A seniormember of the commissiontold the Financial Timesthat the poverty line figuresshould not have beenincluded in the affidavit. Hesaid the government had todo better on how it commu-nicated economic policy tothe country’s 1.2bn people.“I wouldn’t have put thesenumbers in,” he said. “You

can’t [as an economic plan-ner in India] get on yourhigh horse of economicrationalism.”

Senior Congress partyministers have also raisedobjections. Jairam Ramesh,the minister for rural devel-opment and a close ally ofCongress party presidentSonia Gandhi, has writtento Mr Ahluwalia asking himto consider alternativemeasurements and warningof possible confrontation.

A.K. Shivakumar, a mem-ber of the National Advi-sory Council chaired by MrsGandhi, said Rs32 a daywent nowhere in India’sfast-growing cities, whererents are high and foodinflation is in double digits.●India’s powerful homeminister, Palaniappan Chid-

ambaram, offered to resignon Monday, television chan-nels reported, days after adocument emerged thatsuggested he failed to stop amultibillion-dollar telecomsscam that has rocked thegovernment, Reuters rep-orts from New Delhi.

Mr Chidambaram toldMrs Gandhi he wanted toresign to avoid embarrass-ment to the party, CNN-IBNreported, citing unnamedsources. A scandal over thesale of second-generationtelecoms licences at rock-bottom prices in 2007, whenMr Chidambaram was fin-ance minister, has landedone former minister andcompany executives in jail.An analyst said Mrs Gandhiwas unlikely to accept MrChidambaram’s resignation.

Battle rages over India poverty lineNew benchmark ishalf World Bank’sMany to lose aid ifmeasure is changed

Face of poverty: a boy drinksfrom a ruptured pipe ina Mumbai slum Reuters

Below the line?

Source: Planning commission

* since accepted by the planning commission

% of Indians living in poverty

0

10

20

30

40

50

1973-74

77-78

83 87-88

93-94

2004-05

Official estimatesTendulkar committeeestimates*

By Joe Leahy in São Paulo

When Brazil’s central bankunexpectedly cut its bench-mark interest rate at theend of August, the first cas-ualty was the country’s cur-rency, the real.

After hitting a 12-yearhigh against the dollar inJuly, the real began toweaken so rapidly that thecentral bank last week wasforced to intervene for thefirst time in two years toshore it up.

The decline has been sodramatic that analysts arequestioning whether Brazilwill be forced to sound theretreat on its so-called cur-rency war – the fightagainst foreign capitalinflows that have strength-ened the real and which itclaims have underminedthe competitiveness of itsdomestic industry.

“The authorities arechanging their foreignexchange strategy fasterthan we anticipated,” Gold-man Sachs wrote in areport on the day the cen-tral bank intervened todefend the real from furtherselling. “We believe thatmore is to be expected ifglobal market conditionsremain challenging.”

The real gained about 46per cent against the dollarbetween the end of 2008 andJuly this year. The trendwas helped by the centralbank, which tightenedinterest rates in an attemptto reduce stubbornly highinflation.

The government tried toarrest the appreciation ofthe currency against thedollar by implementing cap-ital controls, culminating ina 1 per cent transactionstax on currency derivativespositions imposed in July.Critics saw this measureas particularly onerousbecause it could affectexporters trying to hedgetheir foreign exchange posi-tions as well as speculators.A further concern was thatthe legislation imposing thetax allowed for it to beincreased to up to 25 percent.

The measure took some of

the sheen off the real. Butthe currency began to gointo freefall only afterAugust 31 when the centralbank suddenly reversed thetightening trend with a 50-basis point cut in thebenchmark Selic rate,reducing it to 12 percentagepoints. The central bankcited the rapidly deteriorat-ing global economic outlookfor the decision.

Rising uncertainty overthe eurozone further bat-tered the currency. In onemonth, the real has shed 14per cent of its strengthagainst the dollar and atthe end of last week wasthe second worst perform-ing after the South Africanrand among 25 emergingmarket currencies trackedby Bloomberg.

In spite of the rapid fall,Guido Mantega, Brazil’sfinance minister, hasremained circumspect onwhether the currency waris over. He told the Finan-cial Times that while thecurrency controls would beunwound if they were nolonger needed, the inter-national market scenarioremained too uncertain.

“This is an exceptionalsituation that may not lastlong,” Mr Mantega said ofthe global economic out-look. “So we must wait forthe end of this exceptionalscenario to verify whatlevel of the exchange ratewould be stable.”

Mr Mantega has goodreason to be wary. Brazil’sinterest rate cut hascome at a time when infla-tionary pressures in theBrazilian economy remainstrong. Most economists areforecasting that for the firsttime since 2003, Brazil willthis year miss the upperend of its official inflationtarget range of 4.5 per centplus or minus 2 percentagepoints.

If the global economydoes not slow as much asthe central bank expects,Brazil could be forced toresume raising interestrates next year, whichwould again attract capitalinflows from abroad andreignite the currency war.

Brazilians fightrearguard actionin currency war

SEPTEMBER 27 2011 Section:World Time: 26/9/2011 - 19:34 User: summersj Page Name: WORLD1 EUR, Part,Page,Edition: EUR, 2, 1

FINANCIAL TIMES TUESDAY SEPTEMBER 27 2011 ★ 3

The re-emergence ofVladimir Putin as Russia’spolitical supremo failed toprevent the country’s mar-kets being buffeted by glo-bal financial turmoil onMonday, with the pressureonly set to intensify afterthe sudden dismissal of thecountry’s finance ministerand leading fiscal hawk.

The rouble fell just morethan 1 per cent in morningtrade to its lowest rateagainst the dollar sinceAugust 2009, and analystspredicted no end to the cap-ital outflows that havegrown to more than $70bnover the past year.

While the rouble’s slide isseen as mainly connected toglobal woes, bankers saidthat the downward spiralwould strengthen afterDmitry Medvedev, the cur-rent president and MrPutin’s would-be prime min-ister, sacked Alexei Kudrinlate on Monday. Open war-fare had broken out overhis refusal to work underMr Medvedev in a futurecabinet.

Furthermore, Mr Putin’simminent return to the topspot in Russian politics isdimming hopes among asection of big and middle-level business for greatercompetition, kindled by MrMedvedev’s economicreform plans. Despite expec-tations that Mr Putin willseek to present a more lib-eral image, fears prevailthat the country is now oncourse for economic stagna-tion and continued cronycapitalism that has bene-fited Mr Putin’s friends andallies.

“Kudrin’s departure isjust another brick in thewall separating Russia frominvestors, and that wall isgetting higher,” said StevenDashevsky, the head of aninvestment fund.

Even though Mr Kudrinhas won plaudits frominvestors for his fiscal con-servativism, lately he hasbeen unable to preventexcessive state spendingand the growing crony sys-tem, Mr Dashevsky said.“Now for rational investorsthere are just not thatmany reasons to invest in

Russia any more,” he said.“The capital outflows will

not weaken as the biggestpart of the business commu-nity does not have muchfaith in Putin’s economicpolicies and no one tiestheir hopes with him signif-icantly improving theinvestment climate,” saidSergei Aleksashenko, aformer deputy centralbanker.

“The country is goingdown the toilet,” said onesenior western banker.

The country’s growingurban middle class couldjoin big business in votingwith their cash, analystssaid.

“The worst thing is thatthe middle class, whichshould be a new driver ofgrowth for the Russianeconomy, is now starting totake capital out of the coun-try too,” said Yulia Bush-ueva, head of an investmentfund at Arbat Capital, aMoscow investment bank.

“This used to be the pre-rogative of the oligarchs.But now the middle classare looking to buy propertyabroad and educate theirchildren abroad. They don’tsee much future in theircountry.”

A recent survey by theindependent pollster Lev-ada suggested that 22 percent of Russia’s adult popu-lation wanted to emigrate,compared with 7 per cent in2007.

Fearing stagnation, somebetter-known names in Rus-sian big business have qui-etly been seeking to trans-fer assets to safer havens.

Mikhail Prokhorov, thecountry’s third-richest manwho, until recently, spear-headed the push for liberalparty representation in par-liament via his leadershipof the Right Cause party,this year secured a Londonlisting for his Polyus Goldminer. Together with OlegDeripaska, he also last yearwon a Hong Kong listingfor the UC Rusal alumin-ium giant controlled by MrDeripaska.

Behind the scenes, agroup of oligarchs was“clearly backing Medvedevto remain as president”,said another senior banker.“Plan B was for him to stayon as prime minister.”

Mr Deripaska too hadappeared to hope that a raftof corporate governancereforms being prepared byMr Medvedev would helphim in his battle for controlof Norilsk Nickel againstrival metals tycoonVladimir Potanin. Thoughno one expects any of theseoligarchs to be attackedover their tacit support ofMr Medvedev, their posi-tions could be weakened.

The position of IgorSechin, the energy tsar,who had appeared to beunder fire in Mr Medvedev’scorporate governance driveamid great rivalry betweenthe two men, is now likelyto remain strong, analystssaid. Even if Mr Sechinloses his post as deputyprime minister, he couldtake an equally powerfulone in Mr Putin’s newKremlin administration.

Gideon Rachman, Page 11

Russia feelsthe pain asinvestorstake f lightKremlin powerOutflows reached£70bn last yearand Putin’s returnis unnerving forbusiness, writesCatherine Belton

Russian capital flight

Source: Bank of Russia(first half)

Net private sector capital inflow($bn)

-150

-100

-50

0

50

100

2006 08 11

By David Blair in London

BP is planning a pipelinestretching 1,300km acrossthree countries to bring gasfrom Azerbaijan to Europe.

The scheme is a newentrant in the highlycharged competition to con-struct a supply route to theCaspian basin and reduceEurope’s dependence onRussian gas.

Until now, three projectshave been under considera-tion, each of which wouldalter the strategic picture ofEuropean energy by con-structing a “southern corri-dor” to Azerbaijan’s ShahDeniz gas field, currentlybeing developed by sevencompanies, including BP.

The existing proposalsare the Nabucco route,favoured by the EuropeanCommission; the Trans-Adriatic Pipeline; and theIGI Poseidon scheme.

BP’s new plan, known asthe South-East EuropePipeline, has emergedbefore a crucial deadline:

on Saturday, Nabucco andits two competitors willpresent their tariff offers tothe Shah Deniz consortium,which includes BP. Theconsortium will decidewhich pipeline to favour bythe end of this year.

Al Cook, BP’s vice-presi-dent for Shah Deniz devel-opment, described theSouth-East Europe Pipelineas “another possible solu-tion”, saying that BP was“open to the idea” of directinvolvement in the project.He added: “It doesn’t followfrom this that we necessar-ily find flaws in the threeoffers. But it is wise to haveanother option.”

Mr Cook noted that BPhad led the construction oftwo existing pipelines link-ing Azerbaijan with Turkey.“This gives us the confi-dence that we could do itagain,” he said.

The Nabucco proposal,described as “heavily politi-cised” by one banker,involves a 3,863km pipelinerunning from Turkey to the

European gas hub inAustria. The price tagwould be as high as $20bn,according to people familiarwith the scheme. Moreover,Nabucco would haveannual capacity of 31bncubic metres, comparedwith the 10bn cu m availa-ble from Shah Deniz from2017.

Europe’s strategic inter-

ests explain Nabucco’s sizeand cost. The idea is toopen a new corridor for theEuropean continent toimport gas not only fromAzerbaijan but the widerCaspian region and theMiddle East, includingTurkmenistan and Iraq.

BP’s new plan envisages asmaller and cheaper pipe-line, geared to the commer-cial interests of BP and itspartners, who plan to invest

$22bn in expanding theShah Deniz field.

The proposed pipelinewould start in western Tur-key and run acrossBulgaria and Romania toHungary’s eastern frontier.It would make use of exist-ing infrastructure to linkto Azerbaijan in the eastand the Austrian gas hub inthe west. In all, it would beabout a third of Nabucco’slength, making it farcheaper.

It would also have abouta third of the capacity,commensurate with the gasthat Azerbaijan could sup-ply. However, the pipelinewould be flexible enoughto be scaled up if othersources of gas emerge.

“It is in the interests ofeverybody to find thatmagic number which makesthat pipeline both commer-cially viable and politicallyinteresting,” said RiccardoPuliti, head of energy andnatural resources at theEuropean Bank for Recon-struction and Development.

BP proposes fourth pipeline routeto bring Azerbaijan gas to Europe

Business friends toast comeback

At least one class ofRussian big business hasbeen celebrating the newsthat Vladimir Putin will bethe ruling party’s candidatefor the presidency, writesCatherine Belton inMoscow.

Even as Mr Medvedevattempted to pursue plansfor a liberalisation of theeconomy, over the pastfour years a coterieof businessmenwith close ties toMr Putin haveseen their fortunessurge.

This group is ledby Gennady Timchenko(right), a close Putin allyfrom St Petersburg whoseGunvor oil trading companyrose from niche player tobecome the world’s thirdbiggest with an annualturnover of $70bn duringMr Putin’s presidency.

In the past four years, MrTimchenko has expanded

his empire into holdings ina fast growing independentgas producer, sea ports andcoal mines, as well ascontrol over gas pipelineconstruction company,Stroytransgaz. The groupdenies its rise is connectedto Mr Putin’s position.

Others in the groupinclude Arkady Rotenberg,

the head of a StPetersburg judo club

founded by Mr Putinand owner ofStroygazmontazh,an energy services

company, and YuryKovalchuk, the head

of St Petersburg bankBank Rossiya, and a formerneighbour of Mr Putin’s.

“All they have caredabout is keeping theirempires,” said onebusinessman with close tiesto the country’s topbusiness elite. “They havebeen pressing Putin toreturn.”

World news

Russia’s prime minister Dmitry Medvedev (left) and financeminister Alexei Kudrin, whom he sacked on Monday Reuters

$20bnCost of Nabucco pipelinefavoured by Brussels

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By Peter Spiegel in Brussels

The window for resolvingthe eurozone’s sovereigndebt crisis is closing morequickly than policymakersanticipated.

Choices on Greece andthe future of the euro thatwere once considered along way off now must besettled within weeks.

Eurozone governments,many facing growingpublic disquiet, must nowaddress three overlappingpolicy discussions forstepping up theirresponse to the crisis.Once-unthinkable proposalsfor fiscal union and sharedresponsibility for sovereigndebt are now beinghurriedly readied forministerial discussion.

Senior European officialshope that by the time of asummit of European Unionleaders in October, theywill have: put in placepowers for the eurozone’s€440bn rescue fund; agreedon the need to expand thefund’s firepower; andpresented plans for furthereconomic integration. Butpolicymakers still have towork out countlessdisagreements that coulddoom the process.

1A rescuefund withextra tools

The most immediate taskfacing European leadershas been on the frontburner for more than twomonths: getting all 17eurozone parliaments toapprove the overhaul ofthe European financialstability facility, the bloc’s

rescue fund.Once resisted by

Germany and theNetherlands, among others,they are now seen asessential to dealing withthe two things that mostthreaten the survival ofthe eurozone: a meltdownof the banking system,perhaps starting in France,and a run on Italian andSpanish bonds.

Under the overhaul, theEFSF would be able toinject capital into banksand purchase bonds ofdistressed governments onthe open market, loweringborrowing costs and givingcapitals more time toimplement reforms.

The politics of theoverhaul have begun to gettricky. Although sixparliaments have approvedthe measures, Finland –the most ornery of theeurozone’s six triple Arated members – is to voteon Wednesday, andpassage is not assured.

All eyes then turn toThursday’s vote inGermany, where AngelaMerkel, the chancellor, hasthe support of oppositionparties but faces a revoltfrom within her owncoalition. “If any triple Asstep out, I think it’s a deaddeal,” said one senior EUdiplomat.

Then there is Slovakia,where political oppositionis strongest. “There’s ahuge impatience in thebigger member states andthey’re really, reallyupping the pressure,” saidSony Kapoor, head ofRe-Define, an economicconsultancy that hasworked with eurozonegovernments. If Slovakia

fails to approve the deal, itmay not be fatal but islikely to increase callsfrom other scepticalnations looking for opt-outs.

Mujaba Rahman, Europeanalyst for the EurasiaGroup, said the biggestrisk now was that EFSFpowers would be diluted inthe national parliaments inlegislative horse-trading,drastically reducing theireffectiveness. Already, theGerman Bundestag hasinsisted having approvalrights over EFSF actions.

There has been arenewed push by someeurozone officials,particularly withinGermany, to re-examine alarger-scale “haircut” forGreek bondholders oncethe new EFSF powers arein place next month.

Many officials inBrussels and at theEuropean Central Bankhave resisted such moves,but some in Berlin believethe new EFSF powers willenable leaders to“ringfence” Greece andprotect other strugglingcountries and Europeanbanks.

“That’s what themoderates in Germanywould like to see,” joked asenior European official.But such support for aquick and hard default islimited and most officialsbelieve it is unlikely.

2Boosting therescue fund’sfirepower

For the EFSF to performeffectively its new duties,eurozone leaders havefinally acknowledged that

the fund – originally set upas a temporary facility todeal with small peripheraleconomies – is no longerbig enough for its newtasks. Bail-outs for Ireland,Portugal and Greece havereduced usable EFSFguarantees to about €250bn($336bn). Manycontributing countries arenow unable to increasetheir commitments forpolitical reasons or becausethey could jeopardise theirown credit ratings.

Instead, leaders aredebating at least fivedifferent proposals on howto make EFSF money gofurther, mostly byleveraging the availableremaining cash. One

proposal is for the EFSF toguarantee losses of up to20 per cent on sovereignbonds, for example ofSpain and Italy, ratherthan buying the bondsoutright. Such insurancewould increase the value ofEFSF support by five timesand avoid upfrontpayments. Another variantwould speed up by a yearthe creation of the EFSF’sreplacement, thepermanent Europeanstability mechanism, whichwas originally to come intoplace in mid-2013.

Unlike the EFSF, whichis funded throughguarantees, a large portionof ESM funding will comefrom paid-in capital from

member states, money thatcould then be more easilyleveraged in the financialmarkets. Proposals thatrely more on the ECBinclude turning the EFSFinto a bank and allowing itto borrow money from theECB, a nearly unlimitedreserve. The plan has beencriticised by theBundesbank, however.Another version wouldkeep the ECB purchasingsovereign debt as it nowdoes but have the EFSFguarantee the bondpurchases, movingpotential losses to the fundrather than the ECB.

A broader restructuringof Greek debt is not likelyuntil one of the newleveraging proposals is inplace, and officials aredivided over how long itcould take. Eurozonefinance ministers are likelyto discuss proposals nextweek, and EU leaderscould set out principles attheir October summit.

But getting the newplans in place couldrequire another round ofparliamentary approvals,which could push off theirimplementation – andplans for a restructuring ofGreek debt – for months.

3Closer economicintegration

Eurozone leaders will alsostart debating wider-ranging reforms toestablish more centralisedEU authority over nationaleconomies. Herman VanRompuy, the EuropeanCouncil president, willoutline proposals at the

October summit, includingideas for an EU financeminister and new bondscollectively backed by all17 eurozone countries.

Instead, much recentdebate has focused onwhether a new round oftreaty changes would beneeded to implement thereforms. Opinion is highlydivided, with severalcountries, including theUK, concerned that a wide-ranging debate on new EUtreaties could lead toacrimonious fights withineach member state thatcould destabilise theUnion.

“Treaty change at thisstage would be verydangerous,” said one seniorEU diplomat.

Some officials haveargued that the eurozonealready has authority tomake big changes underthe just-implementedLisbon treaty, which givesthe eurozone the authorityto “strengthen the co-ordination and surveillanceof their budgetarydiscipline”. But EuropeanCommission lawyers aredubious, and officials saidGermany was pressinghard for new treaties toenshrine tough rules thatwould prevent profligatemembers fromundermining the currency.

Although collectivelybacked “eurobonds” areexpected to be included inthe debate, several officialsnoted that any move topool risk would implicitlyrely on Germany’s strongeconomy and credit rating– in return giving Berlinunparalleled authority topush for tough new treatyrules in exchange.

By Ralph Atkinsin Frankfurt

The European Central Bankis likely next week toextend its provision ofliquidity to banks as itseeks to counter the escalat-ing eurozone debt crisis,but there is still a questionas to whether it will cutofficial interest rates aswell.

Comments by ECB gov-erning council members

suggest their October 6meeting in Berlin to setinterest rates – the last tobe chaired by Jean-ClaudeTrichet, president – willconsider measures to reas-sure investors about thestability of eurozone banksand to head off recessionrisks.

Since the global financialcrisis erupted in mid-2007,Mr Trichet has sought deci-sive ECB responses toevents. Action next weekcould ease immediate pres-sure on his successor,Italy’s Mario Draghi, whotakes over on November 1.

European policymakerswere urged at the week-end’s International Mone-

tary Fund meetings inWashington to tackle thecontinent’s debt woes moreeffectively.

The ECB has said it willprovide banks with unlim-ited loans lasting up tothree months until at leastearly next year. But thatdeadline is almost certainto be extended – perhapsuntil mid-2012 – providingreassurance that banks willnot run out of liquidity andallowing them greater plan-ning security. In addition,the ECB could reintroduceoffers of six-month or 12-month liquidity.

“We are ready to do whatis needed” on liquidity, saidLorenzo Bini Smaghi, an

ECB executive board mem-ber, in New York on Mon-day. “We need to reassuremarkets.”

The ECB has greatlyexpanded its eurozone gov-ernment bond purchase pro-gramme to include Italianand Spanish debt –although figures on Mondayshowed it spent just €4bn($5bn) last week, the small-est weekly amount sincethe programme was rampedup in early August.

Under consideration nextweek will be whether toresume purchases of cov-ered bonds, which areissued by banks and backedby mortgages or public sec-tor loans and are regarded

as ultra-safe investments. A€60bn covered bond pur-chase programme wasunveiled in May 2009.

But most attention willfocus next week on whetherthe ECB reacts to deterio-rating economic prospectsby reducing its main policyrate as well. Unlike the USFederal Reserve and Bankof England, the ECB hasroom to cut – it has raisedrates twice this year, mostrecently to 1.5 per cent inJuly – and Mr Trichet leftopen such a possibility afterSeptember’s rate-settingmeeting. Some financialmarket economists arepredicting a cut of as muchas half a percentage point.

The ECB council debate islikely to be finely balanced,however. The ECB has fac-tored in a significant slow-down and is not ruling outa technical recession – twoconsecutive quarters of neg-ative growth. However, dataand survey evidence so farare seen simply as confirm-ing risks to growth withoutproviding evidence thatthose risks have emerged.

On Monday, the Munich-based Ifo institute reportedthat its business climateindex fell less than expectedin September – and did notrepeat the sharp fall seen inAugust. Speaking later inWashington, Jens Weid-mann, Bundesbank presi-

dent, said German growthhad been “robust” in thethird quarter and anexpected slowdown over thewinter “should prove to bemore of a soft patch”.

Nevertheless, Yves Mer-sch, Luxembourg’s centralbank governor, told Ger-many’s Boersen-Zeitungnewspaper that if therewere “a significant worsen-ing of the dynamics of theeconomy in the euro area,we do have room to move”.

Besieged in Berlin, Page 9Letters, Page 10IMF playing second fiddlein Europe, Page 11Lex, Page 14www.ft.com/euro

By Neil Buckley,East Europe Editor

Foreign banks and govern-ments are warning Hungarythat its moves to help hold-ers of Swiss franc mort-gages amount to “expropri-ation” that could damagethe country’s banking sys-tem and economy.

Austrian and Italian-owned banks that are biglenders across centralEurope have urged Brusselsto investigate what theyclaim is a breach ofEuropean Union rules thatcould set a dangerous prece-dent if allowed to stand.

Hungary’s parliamentpassed a law last weekallowing mortgage borrow-ers in Swiss francs andeuros to repay their loansby the year-end at exchangerates about 25 per centbelow current market rates.Losses would be borne bythe banks, including Hun-gary’s OTP and foreignlenders such as Erste Bankand Raiffeisen Bank Inter-national of Austria, andBank Austria, a unit ofItaly’s UniCredit.

Two-thirds of Hungarianmortgages are in Swissfrancs – taken out to takeadvantage of low interestrates, mostly when theSwiss currency was weaker.The franc’s gains againstHungary’s forint have leftmany borrowers strugglingto make repayments.

But the plan to ease theburden on borrowers hascaused the most seriousclash to date betweenforeign businesses and theunorthodox economic poli-cies of the government ofViktor Orban. Investors hadalready been unsettled lastyear by the largest bankinglevy in the EU, and retro-active “crisis” taxesimposed on the telecoms,energy and retail sectors

“This early repayment actis clearly an interferencewith private contracts, to acertain extent it is changingproperty rights,” said JosefChristl, former executivedirector of the Austriancentral bank. “There is ageneral feeling that Hun-gary is not going in linewith the European environ-ment it operates in.”

Maria Fekter, Austria’sfinance minister, wrote lastweek to Gyorgy Matolcsy,Hungary’s economy minis-ter, saying that “forcingmarket participants to takeenormous losses on theirbooks through legally dec-reed prices and exchangerates is not acceptable prac-tice in a market economy”.

Zoltan Kovacs, Hungary’sminister of state for govern-ment communication, saidthe size and severity of theproblem justified the meas-ures taken. He also said “inour perception” the law wasnot against EU rules.

“The banks made Swissfranc loans to very riskypopulation groups,” he said.“We consider the practicesof the banks, especially inthe last couple of years, asunethical.” He suggestedthere had been elements ofmis-selling of loans tocustomers who did notunderstand the risks.

Mr Kovacs confirmed thatgovernment lawyers hadraised the possibility oflegal challenges to the lawbut said the governmenthad made a “carefully cal-culated political decision”to go ahead with the plan,which it believed waslegally watertight.

Mr Orban told a Hungar-ian newspaper his govern-ment had decided to end an“era of bankers” that had“ruined” Europe and hisown country.

ECB expected to boost bank liquidityCut in interest ratesopen to questionMeasures seek toreassure investors

Europe thinks the unthinkable to solve debt crisisA public sector union activist uses a megaphone behind a line of riot police during an austerity protest at Greece’s general accounting office in Athens Bloomberg

EU urgedto probeHungarymortgagemove

By Hugh Carnegy in Paris

France’s Senate, the upperhouse of parliament basedin the splendid Luxembourgpalace in Paris, is not usu-ally the scene of excitedelection celebrations.

But on Sunday night sup-porters of the oppositionSocialist party and its left-ist allies celebrated in the17th-century palace aftercapturing a majority in theSenate for the first timesince 1958, giving a bloodynose to President NicolasSarkozy in the process.

It was hardly a sweeping

popular victory: the Senateis elected by councillorsand elected office-holdersand only half of its 348 seatswere up for grabs. The factthat the left had made gainsin the past two rounds oflocal elections meant it wasassured at least of makinginroads in the Senate.

“It is a disappointment,but not a surprise,” was thecomment of Jean-FrançoisCopé, secretary-general ofMr Sarkozy’s ruling centre-right party, the UMP.

The reason the Socialistparty was exultant, how-ever, was that it saw the

result as a sign it has MrSarkozy retreating in thegathering campaign for thepresidential election inseven months. That is wellunderstood by the UMP. “Itis symbolic – technically itwill not change much,” saidone adviser to the party.“But it is a very strongsymbol, a sign of a changeof mood.”

Troubles are piling up forthe incumbent. Mr Sarkozyis in the front line with Ger-many’s chancellor, AngelaMerkel, to stem the crisisover eurozone debt. In theabsence of a solution, mar-

kets have focused concernon weaknesses in France’spublic finances and the per-ceived vulnerability – vigor-ously denied by Paris – ofFrench banks.

One effect of the Senateresult has been to stymie ameasure Mr Sarkozy haspushed at home to underpinFrance’s commitment to fis-cal stability. His intentionto embed a “golden rule” inthe constitution, requiringbalanced budgets, is nowstalled, as it would requirea 60 per cent majority of ajoint session of the Senateand National Assembly.

The domestic economyhas also been in neutral,with zero growth recordedin the second quarter.Unemployment rose in theearly summer. But the gov-ernment has been forced totake additional austeritymeasures, raising taxes, toensure it hits its target ofreducing the budget deficitto 3 per cent in 2013.

On top of that, the latestdevelopment in a series ofallegations of financial andpolitical corruption at thehighest levels of govern-ment over the past two dec-ades has edged uncomforta-

bly nearer to Mr Sarkozy.Two close allies from histime as budget minister areunder investigation in afunding scandal stemmingfrom alleged kickbacksfrom an arms sale to Paki-stan in the 1990s.

Mr Sarkozy has stronglydenied any involvement buthis supporters fear theimpact among voters wearyof political corruption.

In the polls, the presidentlags behind François Hol-lande and Martine Aubry,the main contenders to bethe Socialist candidate,including in measures of

who is seen as the best per-son to lead the country outof the economic crisis.

The UMP is worried aboutMr Sarkozy’s prospects ofre-election. But the presi-dent’s supporters say hisgreatest strength is in man-aging a crisis. They cite hisrole in the response to thefinancial emergency of 2008and his leadership of theNato-led mission to Libya.

So Mr Sarkozy has a hugeamount at stake in findinga solution to the eurozonecrisis. If he can help engi-neer that, his prospectscould be reinvigorated.

Socialists sense change of mood as Sarkozy bloodied in Senate vote More atwww.ft.com●Rolling blogThe eurozone crisiswww.ft.com/theworld

●Lex videoIs this the turning pointfor eurozone policymakerswww.ft.com/lexvideo

●IndepthLatest news and analysisof the eurozone’s debtproblemswww.ft.com/eurozone

●FT AlphavilleGold and other currencieswww.ft.com/alphaville

Leaders’ next steps

Sept 27 Greek parliamentvotes on unpopular newproperty tax

Sept 28 Finnish parliamentvotes on new powers forthe European financialstability facility

Sept 29 German parliamentdue to ratify the EFSF, butwill Chancellor Angel Merkel(below) win over hercoalition partners?

Oct 3 Eurozone financeministers meet

Oct 11 Slovak parliamentvotes on the EFSF, the lasteurozone member to do so

Oct 13 Eurozoneministers could meetagain to sign off on aGreek aidtranche

Oct 14 G20 financeministers meet in Paris

MidOct Greece starts torun out of money

Oct 1718 Herman VanRompuy, European Council,president, will makeproposals on fiscal union atan EU summit

Nov 34 G20 summit

Dec Talks begin on nextaide tranche for Athens

Dec 9 EU summit atwhich leaders to discussincreasing EFSF at summit

Early 2012German parliamentvotes on apermanent bailoutfund to replace the

EFSF

World news

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SEPTEMBER 27 2011 Section:Ad Page Time: 26/9/2011 - 16:38 User: baxterw Page Name: AD RBC, Part,Page,Edition: LON, 5, 1


Contracts & Tenders

World news

World digestAfghan kills twoin CIA officeAn Afghan man employedby the US governmentopened fire on Sundayinside the CIA station inKabul, killing a US citizenand a governmentemployee, and wounding asecond, officials said.

Gavin Sundwall, a USembassy spokesman, saidinvestigators believed thegunman acted alone,adding that the motive hadnot yet been determined.

Ernesto Londono, KabulIn full: www.ft.com/world

Dozens die inIndia floodsMonsoon rains destroyedmud huts and flooded largeparts of northern andeastern India, killing atleast 48 people and leavinghundreds of thousandsmarooned, officials said onMonday. The stranded tookshelter on trees, hills androoftops in the states ofOrissa, Bihar and UttarPradesh. Rain hamperedrescue efforts.

AP, Lucknow

Tibetan monksin fire protestTwo young Tibetan monksset themselves on fire inwestern China on Mondayin protest over governmentreligious controls, say

Tibetan exiles and activistgroups outside the country.

The 18-year-old monkswere from Kirti monasteryin western Sichuanprovince, where the self-immolation of Phuntsog,21, in March sparkedprotests and a crackdownby Chinese securityservices. One of the monkswho died on Monday wasPhuntsog’s youngerbrother, according toactivists of Free Tibet.

Jamil Anderlini, BeijingGirija Shivakumar,

New DelhiIn full: www.ft.com/world

Zambia gestureto China minersMichael Sata, Zambia’snewly elected president,said Chinese companieswere welcome to invest inhis copper-rich state butwarned they must obey thecountry’s laws. While inopposition Mr Satacriticised Chinesecompanies, accusing themof using “slave labour” andcomplaining that theyemployed Chinese workersrather than Zambians. Butin an indication that he iswilling to reach out toforeign investors, Mr Satamet China’s ambassador toLusaka in his first officialappointment after beingsworn in on Friday.

Andrew England,Johannesburg; Reuters

$1bn US solarproject at riskA $1bn project to installsolar panels on militaryhousing across the US,creating thousands of jobs,is at risk because of delaysto its government loanguarantee approval.

SolarCity, the California-based company behind theproject, is pleading withCongress to extend itsSeptember 30 deadline forloan guarantees.

Opposition to federalloan guarantees forrenewable energy hasgrown since solar-panelmaker Solyndra becamebankrupt owing $527m tothe government in August.

Ed Crooks, New YorkSheila McNulty, Houston

In full: www.ft.com/world

Protesters shunYemen talksTens of thousands ofdemonstrators took to thestreets across Yemen toreject calls by PresidentAli Abdullah Saleh fornegotiations with theopposition.

Opposition leaders calledon supporters to markMonday’s national holiday,commemorating a 1962uprising that ended themonarchy, withdemonstrations against MrSaleh.

Bloomberg, Dubai

US politics

By James Politiin Washington

US Congress is locked in atense standoff over thefunding of disaster relief,raising the spectre of a gov-ernment shutdown at theend of this week and expos-ing once again the dysfunc-tion in US politics.

Even at a time of freshconcerns about the healthof the global economy –with Tim Geithner, Treas-ury secretary, warning overthe weekend of a “second

slowdown” and “increaseduncertainty and insecurity”in financial markets – law-makers have been unable toresist adding a new fiscalfight to the mix.

They are arguing over$3.2bn in money for assist-ance to states ravaged bylast month’s hurricaneIrene and other recent natu-ral disasters – less than onethousandth of projected USgovernment outlays of$3,597bn in the currentfiscal year.

Democrats want $6.9bn indisaster funding, whileRepublicans are pushing for$3.7bn – and contentiouslywant the cost covered byspending cuts to loan guar-antee programmes designedto bolster renewable energy

production. If no agreementis reached by Friday night,the US government willshut down all non-essentialservices, a fate that it nar-rowly escaped in April. InAugust, brinkmanship overfiscal policy in Congressbrought the US withinhours of a potentiallydevastating default on itsdebt, but it was not enoughto avoid a downgrade of itstriple-A credit rating fromStandard & Poor’s.

The S&P downgradeprompted some soul-search-ing in Congress, especiallysince it was mostly basedon a political judgment thatthe US political system wastoo fractious to successfullytackle the challenge ofprojected soaring debt lev-

els in the coming decades.In addition, congressionalapproval ratings plum-meted to new lows in thewake of the August stand-off, causing a flurry ofstatements from lawmakerspledging to adopt a lessconfrontational posture.

And yet, coming so closeto a government shutdownagain – even if a new last-ditch compromise is the

most likely outcome –shows how distant anyunity on fiscal policyremains. This bodes poorlyfor the chances of enact-ment of a $447bn short-termstimulus programme pro-posed by Barack Obamathis month – to whichRepublicans have reactedwith scepticism. Theyoppose not only some of thenew spending and tax cutmeasures in the packagebut also plans to raise taxeson the wealthy to pay forthe economic jolt.

It also raises alarm bellsregarding the work of theso-called “supercommittee”of Republican and Demo-cratic lawmakers set up lastmonth to find – by lateNovember – at least

$1,200bn in deficit reductionmeasures over the nextdecade.

Budget hawks in Wash-ington have been clamour-ing for the panel to “go big”and find more savings inthe US budget in order toredress the public financesover the coming decades,but that outcome appearsincreasingly doubtful.There are deep divides ontaxes and spending thatappear impossible to bridge.

“This fight is the under-card for this fall’s super-committee and highlightshow entrenched the parti-sanship is,” wrote ChrisKrueger, an analyst at MFGlobal’s WashingtonResearch Group, in a noteon Monday.

By Javier Blas in Barcelona

Syria has told foreign oilcompanies to cut produc-tion as a backlog of crudefills its storage capacitybecause the governmenthas been unable to bypassan embargo on exportsimposed by the EuropeanUnion.

Syria has sought to sellits oil to nations outside theEU, which before the banbought about 95 per cent ofthe country’s crude exports.

However, industry execu-tives and oil traders saidthe country had been una-ble to attract buyers despiteoffering discounts.

The failure has forced for-eign oil companies to pumpcrude originally earmarkedfor export into storage.“There is a backlog of crudein the country,” said anindustry executive.

“Storage is filling up,” theexecutive added, sayingsome companies had beentold to reduce output.

Gulfsands Petroleum, aLondon-listed company thatoperates in Syria, has cutits production by about 40per cent at the request ofthe authorities. The com-pany is now pumping about14,500 barrels a day, downfrom about 24,000 b/d inAugust.

Industry executives saidother international oilcompanies operating in thecountry, which includeRoyal Dutch Shell, Total ofFrance, and state-ownedCNPC of China and ONGCof India, have also recentlybeen given orders to cutback.

Although internationaloil companies hope the cutsare temporary, and will endwhen Syria finds nationswilling to take its crude,others see the drop lastingas long as the EU embargoremains.

Brussels imposed the oilban in response to a crack-down by the regime ofBashar al-Assad on pro-democracy activists thathas seen more than 2,700people die in the past sixmonths.

Syria produced in Augustabout 370,000 b/d of lowquality crude oil, accordingto the International Energy

Agency, the western coun-tries’ oil watchdog.

Syria last year exportedabout 150,000 b/d, with therest consumed domesti-cally. Germany and Italyaccounted for roughly two-thirds of the country’s oilexports.

Imad Moustapha, Syria’sambassador to Washington,said in a recent interviewwith the Financial Timesthat the country wouldhave no problem findingmarkets for its oil.

“It’s not that we areapproaching people, it’s theother way around. Weare being approached,” hesaid.

However, this month nota single cargo of Syriancrude oil has left thenation’s main export oilports, according to shippingdata. Several tenders of lowquality, high sulphur

Souedie crude, the coun-try’s main export stream,have failed to attract anyinterest, traders said.

Oil traders said the effectof the EU ban on Syrian oilwas wider than expectedbecause international banksrefused to open letters ofcredits – a common instru-ment used in trading – withSyrian entities, even whento destinations outside theEU.

Owners of tankers werealso reluctant to send theirvessels to Syrian ports, theysaid.

The production lossescompound the fine balanceof supply and demand inthe Mediterranean andEuropean region, home offour of the world’s 10 larg-est oil-importing nations:Germany, France, Spainand Italy.

However, the shortfall isnot nearly as big as thatcreated by the civil war inLibya, which producedbefore the start of the revo-lution 1.6m b/d of high qual-ity, low sulphur crude oil.

Shell directed questionsabout production in Syriato the Damascus-basedAl-Furat Petroleum Com-pany, which could not bereached. Al-Furat is a jointventure between Syria’sstate-owned General Petro-leum Corporation, whichcontrols a 50 per cent stake,Shell Oil and CNPC. Totaldid not respond to calls ande-mails.

Disaster relief splits CongressStandoff raisesfears of shutdownLawmakers ignoreeconomy warnings

‘This fighthighlights howentrenched thepartisanship is’

Chris KruegerMF Global

EU sanctionsforce Syria toorder cut inoil production

Source: IEA

Syrian oil outputBarrels per day (m)

2007 09 110.35

0.36

0.37

0.38

0.39

0.40

0.41

“Don’t compare me to theAlmighty,” Barack Obamaimplored his supporters ona fundraising sweep alongthe west coast of thecountry. “Compare me tothe alternative.”

After taking a batteringin opinion polls and inCongress, Mr Obama hasstarted on his tour ofSeattle and Silicon Valleyto move the debate from areferendum on hisperformance to a choicebetween him and theRepublicans.

At seven events overthree days, the president isalso displaying hisformidable fundraisingabilities, an advantage thatwas crucial in his 2008election victory, and that hehopes to carry into nextyear’s poll.

At a function on Sundayin the Californian home ofSheryl Sandberg, the chiefoperating officer ofFacebook who served in theTreasury during the Clintonpresidency, the guestsincluded the singer LadyGaga, whom reporters saidtowered over Mr Obama inher platform heels andswept-up hair.

Lady Gaga was a paidattendee at the $35,800 acouple event and engagedMr Obama in a briefdiscussion about schoolbullying.

Mr Obama melded thepitch for funds with thefirst direct attacks on hisopponents, talking aim atRick Perry, the Texasgovernor for his stance on

global warming andthe behaviour of theRepublican base duringthe recent candidates’debates.

“You’ve got a governorwhose state is on firedenying climate change,”Mr Obama told afundraising event, referringto the drought, andwildfires, in Texas.

“You’ve got audiencescheering at the prospect ofsomebody dying becausethey don’t have healthcareand booing a servicemember in Iraq becausethey’re gay.”

But such is theuncertainty on the rightthat the alternative to MrObama is far from clear,

even as the president seeksto distinguish himself fromhis opponents.

A number of wealthyconservative activists arestill agitating for ChrisChristie, the New Jerseygovernor, to enter therace, even though he hasresisted such entreaties formonths.

The most recent entrantto the Republican field, MrPerry, raced to the top ofpolls tracking theRepublican candidates,ahead of Mitt Romney, theformer Massachusettsgovernor.

But Mr Perry’s stumbles,in debate answers overimmigration and foreignpolicy, have underlined thedifficulties of entering therace against candidates whohave been testing theirpositions for months.

Policy aside, an even

greater barrier for latestarters is the ability toraise enough money forwhat is expected to be byfar the most expensivepresidential poll.

Mr Obama raised $86.7min the three months toJune, for both himself andthe Democratic party, aboutfour times what his closestrival, Mr Romney managedover the same period. He isaiming to raise $8m overthree days on the westcoast.

Mr Obama is keen tomaintain the hugeadvantage he enjoyed in2008, when he had abouttwice as much money tospend on his campaign asJohn McCain, hisRepublican rival.

Mr Obama’s campaignhas an ambitious target topull in $1bn for the 2012campaign, a figure that willbe hard to match forany Republican candidate,who will probably have tospend a large amount justto get the party’snomination, before takingon Mr Obama.

Whatever mistakes hehas made on policy issues, akey test of whether MrPerry’s candidacy is gainingtraction is how muchmoney he will be able toraise in the three months tothe end of September, hisfirst reporting period.

Mr Perry has been aformidable fundraiser inTexas, where a Republicangovernor naturally attractsthe support of the state’swealthy, cashed-upcompanies.

However, he cannoteasily tap into the samesources in running forpresident. Texas has nolimits on donations whereason a federal level they arecapped at $2,500 forindividual donations.

The latest fundraisingfigures will be officiallyreleased on October 15.

Obama fires openingsalvo on RepublicansWhite House raceThe presidentis starting tofight back as theright battles withuncertainty, saysRichard McGregor

40%Cut in production byGulfsands Petroleum

370,000Syria’s b/d production oflowquality crude in August

95%Proportion of prebanoutput that went to the EU

Barack Obama embraces first lady Michelle at a party fundraising event Getty

‘You’ve got agovernor whosestate [Texas] ison fire denyingclimate change’

By Katrina Mansonin Nairobi

Nobel Peace Prize winnerWangari Maathai, Kenyanenvironmental activist andhuman rights campaigner,has died of cancer aged 71.

She founded the GreenBelt Movement in 1977,which campaigned againstgovernment-backed forestclearances and went on toplant more than 47m trees.In 2004 she became the firstAfrican woman to receivethe Nobel Peace Prize.

“When we plant trees, weplant the seeds of peaceand of hope,” she told theFinancial Times in 2004after winning the award,believing that trees couldhelp poor women to securefirewood, water and food.

Kofi Annan, former UNsecretary-general, said hewas deeply saddened by herdeath, describing her as “acourageous leader”.

“Wangari Maathai will beremembered as a committedchampion of the environ-ment, sustainable develop-ment, women’s rights anddemocracy,” he said on

Monday. “Her energy andlife-long dedication toimprove the lives and liveli-hoods of people will con-tinue to inspire generationsof young people around theworld.”

Under the autocratic ruleof former President Danielarap Moi, Professor Maathaikept up her campaign fordemocracy and women’srights, despite repeatedlybeing arrested, teargassedand beaten for her activism.

She fought for the releaseof political prisoners,opposed land grabs andblamed drought on corrup-

tion and poor environmen-tal management.

Among the few villagegirls to be educated, shebecame the first woman inthe region to gain a doctor-ate, became a member ofparliament and headed theKenyan Red Cross.

She was the inspirationand patron of theBillion Tree Campaign, aglobal UN-backed effortlaunched in 2007 which hasso far planted 12bn trees.

The grandmother andmother-of-three died sur-rounded by her family inhospital, following longbouts of treatment.

“Professor Maathai’sdeparture is untimely anda very great loss to all whoknew her – as a mother, rel-ative, co-worker, colleague,role model and heroine – orwho admired her determi-nation to make the worlda more peaceful, healthierand better place,” said theGreen Belt Movement on itswebsite.

Thousands of tributespoured in on Monday. “Thetrees, streams and birdsyou worked so hard to pro-tect will forever sing yourpraises,” posted PatrickMaigua on a Facebook pagededicated to her memory.

Nobel Peace Prize winnerWangari Maathai dies at 71Africa mourns forenvironment activist

Prof Maathai, Kenyan humanrights campaigner

SEPTEMBER 27 2011 Section:World Time: 26/9/2011 - 19:42 User: mossi Page Name: WORLD4 EUR, Part,Page,Edition: EUR, 6, 1


SEPTEMBER 27 2011 Section:Ad Page Time: 26/9/2011 - 16:04 User: baxterw Page Name: Ad Page-002, Part,Page,Edition: EUR, 7, 1


The market value of goldmight be falling, but onthe final day of MilanFashion Week its stockwas still high on thecatwalk. At the RobertoCavalli show on Monday,gold coloured beads,sequins and snakeskin allfeatured as part of atypically baroque andenjoyably attentiongrabbing collection.

Two main looks werejuxtaposed throughout;rock and roll tailoring andevening dresses. Skinnytrousers and jackets, somematching, came in blackwith gold beaded tuxedotrims, leopard print satin,jungle print, gold crocodileand gold snakeskin andcovered in gold sequins.

The first dresses – someof which were worn withtailored jackets over thetop – picked up again onthe 1920s theme, with dropwaists and skirts madefrom beaded strips offabric over multicolouredchiffon. Later dressesincluded sheer printeddresses, satin dressescovered in animal printand coat of arms-likedesigns, and the finale wasprovided by long, sheer netgowns beaded andembellished withwallpaper-like patterns.

Gold was also surging atGianfranco Ferré on minidresses covered ingleaming feathers and tuftsof raffia, and at SalvatoreFerragamo on a drapedcocktail dress in a molten

ended June 30, to €45.7m($61.6m).

Dresses made from silkscarf material in animaland tropical flower printswere twisted and knottedat the neck or wound likeluxe sarongs, and alsoappeared on straplessjumpsuits with a 1970sdisco feel. Bare shoulderswere an integral part ofthe collection whichfeatured bright shades ofdeep magenta, cobalt, tealturquoise, yellow and darkviolet. Cobalt and magentaalso featured at Missonion knitted, geometricpatterned dresses with aflamenco feel.

Unsurprisingly, therewas a more muted paletteat Giorgio Armani, whereshades of oyster, silver,and steel came in

shimmering fabrics andfinishes, whetherpearlescent, iridescent, orjust slightly gleaming.They appeared on eveningwear as well as the softtailoring that the 77-year-old designer, estimated byForbes to be worth $7bn, isknown for.

Bias cut jackets withoutfastenings or lapels wereworn with cropped silktrousers with slashedankles and draped silk

knee-length skirts. Againstthe sound of crashingwaves and the image of amoon over water projectedon to the wall, the finaleinvolved three models inmoonlight-coloured beadedstrapless column dressesleaning against each otherlike the Three Graces ontheir way to the Oscarsand adopting what werepresumably meant to besoulful expressions.

A much less classicaesthetic was on offer atVersus, Versace’s younger,more affordable line, onSunday. While last weeksaw the end to the D&Gdiffusion line, as its beingfolded into the Dolce &Gabbana main line,Versace is on a drive toboost Versus. It has beendesigned for five seasonsby Scottish-bornChristopher Kane, and onSunday the house showedthe first collection at itsPalazzo in central Milansince taking production inhouse and buying back thelicence.

According to fashionindustry paper Women’sWear Daily, the idea isthat the line will provide aboost and room to grow forthe main line, and thecompany intends to doublecurrent sales of €6m in2012 and quadruple thefigure in the next fiveyears.

With the catwalk madeto look like a basketballcourt, and the start of theshow signalled by a piercing

Versus has a strongidentity and direction.

The same can be said ofMilan Fashion Week thisseason. Collectively, theshows offered clothes thatare relevant for consumers– not just meant forcelebrities to borrow – and,crucially, optimistic.

The consumer isking as this year’sshows take onstrong identitiesand direction

High baroque with a heart of gold

referee’s whistle, Kane’ssporty inspiration wasclear. The Versus girl thisseason, was a “cheerleaderflapper,” showing off agym-honed body in sportymini dresses in “milkshakecolours”. Pale pink satintunic dresses, and croppedsports jackets and giblets

came in pale pink withblack borders, and therewere mini dresses withskirts made of tabs.

A vertical zigzag patternlike that made by a heartrate monitor coveredcrinkled dresses and skirtsin pink, blue and yellow,in a collection that showed

A much less classicaesthetic was onoffer at Versace’syounger line

metal lamé and an eveningdress in laminated goldchiffon with a melange ofanimal prints. Any starletwho wears it on the redcarpet will genuinely“dazzle” her public.

The Salvatore Ferragamoshow on Sunday broughthome how clearly trendsare emerging for nextseason, when it becameanother label to show silkscarves, along with D&Gand Pucci. Perhapsdesigners are inspired bythe financial success ofultimate silk scarf labelHermes. Not thatFerragamo is in need of aboost, Salvatore FerragamoSpA listed on the Milanstock exchange on June 29this year, and posted a 32.4per cent increase in netprofits in the first half

Mila

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Geometricpatterneddresses with aflamenco feel

VersusSporty minidresses feature‘milkshakecolours’

FerragamoBare shouldersprove an integralpart of a silkycollection

CavalliSnakeskin windsinto an attentiongrabbingcollection

ArmaniShades of oyster,silver and steelin shimmeringfabrics

Pictures:catwalking.com

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Specifications for the way we live nowAs the fashion pack leavesMilan for the start of theParis shows today, onedesigner will go with them:Alessandra Facchinetti, lateof Valentino and Gucci, whois making her return tofashion after three years viathe launch of a brand farremoved from her coutureand high fashion roots.

Ms Facchinetti, 39, hasteamed up with Pinko, anItalian fast fashion/lowluxury brand, to createUniqueness, a brandpredicated on the idea ofaffordable clothes that canbe worn at any time, in anyseason, and that will beavailable online as theyappear on the catwalk.

“From a creative point ofview, it’s like a new start,“says Ms Facchinetti, settlinginto a sofa in Milan, whereshe lives. “The process istotally free, but it is alsothe way we live now. If wewant something we want itnow. It’s all about freedom.”

When Ms Facchinetti talksabout freedom, she isreferring to herself as muchas the clothes. She is partof a generation of talentedand critically acclaimeddesigners, including JilSander and OlivierTheyskens, who fell foul ofcorporate politics inrenowned fashion housesand have latterly foundsuccess teaming up withretail brands.

With Uniqueness, MsFacchinetti and PietroNegra, the founder of Pinko,are following in thefootsteps of Ms Sander,who had a muchballyhooedtwoyear collaboration withJapanese retailer Uniqlo

Carola Long

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that came to an end thisseason, and Mr Theyskens,who is now creative directorof the Americancontemporary brand Theory.

Ms Facchinetti, whodiscovered via the mediathat, despite warm reviews,she had been fired asValentino’s creative directorafter just two seasons (shealso lasted only two seasonsas chief women’s weardesigner for Gucci), looksrelieved when she says that

with Mr Negra she has had ameeting of minds: “I reallyhad the desire to break thesystem; to make what I like,present it and sell it.”

Hence the fact thatUniqueness will have acatwalk presentation thisweek and afterwards the60piece collection will go onsale on www.uniqueness.itand multibrand sitewww.thecorner.com. It willalso be sold in somedepartment stores and on

their websites. Thecollection is aimed at “noseason” and “the fabricsgive a feeling of notneeding to be changedevery six months”. Thinkcotton, polyester andchiffon.

As with Theyskens’collection for Theory, thepricing for Facchinetti’sventure is aimed at thehighmiddlemarket: Tshirtsstart at €90 ($121), andmost of the collection isabout €200 to €500. Themost expensive item is€1,200 for a fake fur jacket.All the clothes are made inItaly, at Ms Facchinetti’sspecification, in a factory inFidenza. “We’ve managedto get a good balancebetween quality and pricepoint. It is really well done,”she says.

The Uniqueness websiteis also going to work ashub for a lifestyle à laFacchinetti. She will bewriting on Twitter andFacebook, and have readershelp her create a moodboard. Ms Facchinetti, amusic buff and thedaughter of an Italian rockstar, will be making her ownplaylists and inviting her DJfriends to add their ownmusic choices as addedinspiration for her designs.

“I’m very timid, but here Ihave the frame to openmyself; because this is theweb, I can interact with myvision,” she says. “I waslooking for new energy, andI have a feeling that this isa big injection of somethingnew.” At the very least, shenow has the freedom to try.

Rachel Sanderson

Designs for living: Alessandra Facchinetti

SEPTEMBER 27 2011 Section:Features Time: 26/9/2011 - 18:50 User: kilbyn Page Name: FASHION, Part,Page,Edition: EUR, 8, 1


Germany andthe eurozone

For a chancellorwhose overridingconcern is to savethe single currencyin the face ofsceptical publicopinion, Thursday’sBundestag vote onincreasing the sizeof the rescue fundposes one of herbiggest tests yetBy Quentin Peel

Besieged in Berlin

W hen Angela Merkel, theGerman chancellor, metPope Benedict in Berlinlast week, it appears that

their conversation focused more onMammon than on God.

“We spoke about the financial mar-kets and the fact that politiciansshould have the power to make policyfor the people, and not be driven bythe markets,” Ms Merkel said afterthe talks. “This is a very, very bigtask in today’s time of globalisation.”

That a meeting with the head of theRoman Catholic church should bedevoted to the clash between politicsand the financial markets shows howthe question has become an intenseconcern for the chancellor in themidst of the eurozone crisis.

The woman who is at the heart ofthe struggle to calm the financialmarkets, and stabilise the commoncurrency shared between 17 membersof the European Union, is facing themost critical week of her chancellor-ship, just halfway into her secondfour-year term.

For the past 10 days she has beenengaged in a frantic round of cam-paigning to reassure her grassrootssupporters of the need to pledge moreGerman money to underpin futurerescue programmes for members ofthe European monetary union.

She has met scores of parliamentari-ans, and addressed three regional con-ferences of her party, the ChristianDemocratic Union, across the country.The process culminated with herappearance on an hour-long episode ofGermany’s most popular televisionchat show on Sunday night.

“We need the euro. The euro is goodfor us,” she told Günther Jauch, thestar presenter. “We are doing this forourselves . . . because the stability ofour currency would otherwise be indanger.”

She warned that the country couldnot manage the job alone, and that“unusual measures” would have to betaken. Eurozone members must tacklethe fundamental problem together,she said – reducing indebtedness, liv-ing within their means and thusrestoring the trust of the markets.

It looks as if she has done enough towin the day at home – for the timebeing. What is less clear is whether itwill be enough to satisfy the markets.

When the Bundestag votes onThursday on increasing guaranteesunderpinning the European financialstability facility – the €440bn euro-zone rescue fund – there is over-whelmingly likely to be a big majorityin favour. That is thanks largely tothe support of the opposition SocialDemocrats and Greens.

If so, it will not reflect popular opin-ion. Polls suggest that 75 per cent ofvoters are against the move, whichwould raise Germany’s part of theEFSF guarantees from €123bn to€211bn.

Most important for Ms Merkel, how-ever, and for the stability of her cen-tre-right government, is whether shecan preserve her own majority thisweek, in spite of a threatened rebel-lion by a minority of backbench sup-porters. If more than 19 abstain orvote against the plan, she would loseher absolute “chancellor’s majority”.

“It will be very close,” says Profes-sor Gerd Langguth of Bonn univer-sity. “I think she will get her ownmajority, but maybe not an absolutemajority. Parliamentarians know thatMerkel would lose much of her pres-tige if she didn’t get her own major-ity.”

The chancellor is adamant that shewill not make the question into a voteof confidence. If she lost that, it would

cause her coalition to fall, and none ofthe partners in government – her ownCDU; its Bavarian sister party, theChristian Social Union; and the liberalFree Democratic party – want that.According to all current opinion polls,a government of SPD and Greenswould replace them, and the FDPmight well fail to cross the 5 per centhurdle to win any seats at all.

The Bundestag decision – alongwith votes in the parliaments of allother eurozone members – wouldextend the powers of the EFSF intoterritory regarded with dismay bymost orthodox German economists:buying sovereign bonds of debt-ladeneurozone partners in the secondarymarket; recapitalising Europeanbanks; and providing liquidity loansto countries facing soaring borrowingcosts.

Those are moves that parliamentaryrebels such as Frank Schäffler, theleading dissident in the FDP, abhor.He believes they are inexorable stepstowards what Germans call a “trans-fer union”, where one member statewill effectively be responsible forguaranteeing the debts of others.

On the other side, Ms Merkel facesstrong criticism from the oppositionthat her eternally cautious approachto the eurozone crisis has made mat-ters worse, while encouraging populardoubts about the measures at home.

“As usual, it is too little, too late,”says Prof Henrik Enderlein of Berlin’sHertie school of governance. “If every-thing that is on the table today hadbeen adopted six months ago, wewould be in a very different place.

“Adopting this package is impor-tant, but it is certainly not enough.What I miss is someone prepared totake the lead. When push comes toshove, what is most important for thechancellor: saving the coalition, orsaving the euro?”

Ms Merkel has made clearthat saving the euro, andstabilising the eurozone,is a priority. “If the euro

fails, Europe will fail,” has becomeher mantra. Yet her response hasbeen an uncomfortable balancing actbetween short-term fire-fighting andworking on a long-term strategy to setin place the tools and institutionsneeded to head off future disasters.

On Sunday’s television show, sherepeated that the only solution to theeurozone crisis was a “step-by-step”

approach. “We are buying time forthese countries to get their fiscal posi-tion in order,” she said. There wouldbe no instant magic solutions – nei-ther the introduction of bonds backedcollectively by all eurozone members;nor allowing Greece to default on itssovereign debt. The debt crisis hadbeen building for decades, and thesolution would also take years.

Yet even as the Bundestag preparesto vote on the EFSF reforms, specula-tion is rife that the rescue fund willhave to expand again or be given abanking licence if it is going to haveaccess at short notice to enoughmoney to replace the European Cen-tral Bank in bond markets, let alonerecapitalise sections of the Europeanbanking industry.

Popular perception is of politiciansracing to keep up. “For many monthsMs Merkel and [Wolfgang] Schäuble[her finance minister] have beenstruggling to solve the crisis, but citi-zens see them as just reacting to themarkets,” says Joachim Koschnicke ofthe Forsa polling institute.

Ms Merkel’s step-by-step approachreflects her cautious character. It isalso a response to the sheer complex-ity of the political balancing act inwhich she and Mr Schäuble areinvolved, both in Berlin and betweenBerlin and Brussels.

Europe is not normally a political

issue in Germany. All the main par-ties are pro-European, leaving a vac-uum to be filled – which is why theFDP has been flirting with euroscepti-cism. “Merkel can be criticised for notexpressing the European case moreaggressively and persuasively to theGerman public,” says Prof AndreasBusch of Göttingen university. “Itleaves a gap. As long as it exists,there are potential political operatorswho might angle towards it.”

Yet an attempt by the FDP to gainvotes in the recent Berlin city-stateelections on a eurosceptic platformfailed dramatically: the party’s 1.8 percent vote was a humiliation. “Votersare sensible,” says Mr Koschnicke.“They know their state parliamenthas no influence on euro bonds.”

But Germans are worried aboutgovernment borrowing andinflation, with the experienceof hyperinflation in the 1920s

and 1940s still colouring all their eco-nomic debates. The eurozone debt cri-sis has replaced unemployment at thetop of the list of domestic concerns.

In such circumstances, Ms Merkelhas had a very tough job persuading afiscally conservative economic estab-lishment, with wide influence in herparty and in the FDP, to go alongwith the eurozone rescue plans – or atleast not actively to undermine them.

The answer that has emerged fromthe fraught debate has been to revivethe German campaign for full-scaleEuropean treaty change in order tomake a big step towards much closereconomic and fiscal integration – atleast in the eurozone. From a Germanperspective, those changes must makebudget discipline stronger and pre-vent future debt crises.

Jens Weidmann, Ms Merkel’s formereconomic adviser and now Bundes-bank president, has recently sug-gested that “a major shift to fiscalunion, including a fundamental trans-fer of key areas of responsibility fromnational parliaments to democrati-cally legitimised European bodies” isa viable way forward. He sharply criti-cised the current halfway house as“leading us in a direction that is notsustainable in the long term”.

Ms Merkel has said treaty change isnecessary. That could open the way tocloser tax harmonisation in the euro-zone, and better eurozone-wide regula-tion. It could also create irresistiblepressure for the introduction ofjointly guaranteed euro bonds, how-ever much Berlin may object.

Will it happen? EU treaty change isa time-consuming and unpredictablepath, as negotiations over the [2007]Lisbon treaty proved. Germany’s part-ners are not persuaded that it is nec-essary, and would worry at seeingGerman fiscal fingerprints all overany subsequent text.

Yet the entire debate begs the ques-tion of how to staunch the crisis,before future rules can be put inplace. “Germany is very good atthinking of long-term solutions, andvery bad at handling a short-term cri-sis,” says Prof Enderlein.

Ms Merkel is nothing if not stub-born, however. “She is very tenaciousand persistent,” says Professor JürgenFalter of Mainz university. “Sheknows that she has already had somesuccess on the European level – suchas persuading France, Spain and evenItaly to introduce ‘debt brakes’ intheir constitutions, as we have in Ger-many. This gives her courage tobelieve that the wheel is turning, veryslowly.”

The question is whether it can turnfast enough to restore the confidenceof the markets.

Analysis

On the webVideo: is the world heading for recession?Experts discuss the eurozone crisis andthe global economy. Watch the debate atwww.ft.com/analysisreview

Speed read●Frantic campaigning ChancellorAngela Merkel has been busy reassuringher party that Germany should increasethe guarantees that underpin the€440bn eurozone rescue fund ahead of avote on Thursday by the Bundestag

●Racing to keep up Popularperception is of politicians racing tokeep pace with events dictated by thefinancial markets

●Calls for further integration Thecrisis has revived the campaign for fullscale European treaty change, aimed atcloser economic and fiscal integration,and stronger budget discipline. JensWeidmann, president of the Bundesbank,is one of its foremost proponents

Uneasy alliance

Traditional kingmaker seeks to retain relevanceWhen Angela Merkel ran for reelectiontwo years ago, she said her “dreamcoalition” would be with the liberalFree Democratic party, the natural allyon the centreright for the chancellor’sChristian Democrats. Both definethemselves as “bourgeois” parties andhave close ties to business.

Yet, since taking office, thecombination has proved more of anightmare partnership.

No sooner had the FDP notched upits best ever general election score –15 per cent – than it saw its supporttumble. This was driven in part by thedecision by Guido Westerwelle – thenits leader and Germany’s new foreignminister and vice chancellor – topreserve his party’s profile by constantsniping at coalition policies.

In state elections over the past year,the party that was once kingmaker ofGerman coalitions has seen its vote

collapse to under 5 per cent – theminimum needed to enter parliament.

Having ditched Mr Westerwelle infavour of 38yearold Philipp Rösler, asoftspoken medical doctor andVietnamese war orphan, as party leaderin April, the FDP has seen its supportcontinue to crumble, hitting rockbottom with 1.8 per cent support inrecent state elections in Berlin. “Theparty is in meltdown mode,” saysAndreas Busch of Göttingen university.

Joachim Koschnicke, of pollstersForsa, says the FDP has “hugerelevance problem”. The party hasfailed in six state votes, “but they muststay in the government for fear ofprecipitating new elections”.

Recent electoral failure suggests, headds, that the new leadership has learntlittle from the fate of its predecessor.“Their mistake was to focus everythingon the dead horse of tax cuts.”

A significant minority has sought tomake the FDP more eurosceptic,questioning the Greek bailout, andseeking to block a permanenteurozone rescue mechanism. In April,the eurosceptics won onethird of thevotes at the party’s conference for aresolution to change the FDP’straditionally proEuropean line, andthey are now pushing to have aninnerparty referendum to back them.

“The spot of a eurosceptic party inGermany is vacant, and the FDP mighthave been tempted to move thatway,” says Prof Busch.

After the Berlin vote, where the FDPran a clearly eurosceptic campaign,the chances of the referendumsucceeding seem to be receding. MrRösler now insists the FDP will stayproEuropean, and a loyal member ofthe coalition. He is seeking anotheranswer to make it relevant.

Centre stage:Angela Merkel’sactions are crucialto finding asolution to theeurozone crisis.The chancellorfaces globalcalls to showpoliticalleadership andrestore the trustof the markets

eyevine

75%Germans opposed to pledging moremoney for euro rescue fund

Numbers to note

50%Proportion opposed to Greecegoing bankrupt

44%Percentage in favour of the returnof the D Mark

71%Proportion with little, hardly any orno confidence in euro

Sources: ZDF Politbarometer (Sept), Allensbach (Jun)

‘As usual,it is toolittle, toolate. Ifeverythingon thetable todayhad beenadoptedsix monthsago, wewould bein a verydifferentplace’

SEPTEMBER 27 2011 Section:Features Time: 26/9/2011 - 19:35 User: mcadamd Page Name: BIG PAGE EUR, Part,Page,Edition: EUR, 9, 1


“Without fear and without favour”

Tuesday September 27 2011

● To contribute please email: [email protected] or fax: +44 (0) 20 7873 5938 Include daytime telephone number and full address ● For corrections email: [email protected]

Letters

Notebook

The ultimatedinner party topicProperty prices and rentrenegotiations dominate dinner partyconversation in Hong Kong. Bankersgrumble about a 90 per cent increasein the rents they pay for their flats,but renew their leases anyway. Inrecent months, newspapers havejumped in with giddy headlinesabout yet another property agents’survey confirming that Hong Kong’sstratospheric residential propertyprices are now the world’s highest.Friday’s South China Morning Postfeatured a story that quoted Savillsresearch showing that Hong Kong’sproperties for billionaires were moreexpensive than anywhere else in theworld.

At £6,700 per square foot, Savillsestimates that “trophy” homes inHong Kong are twice as expensive asthose in London at a trifling £3,090per square foot.

Unfortunately, the article featureda photo of a villa in Hong Kong onthe market for a cool US $38m thatwas so unattractive that evenmiddle-class people might thinktwice about living there if they won

it in a lottery. Perhaps it’s notcoincidental that the billionairesmost likely to be buying at the topof Hong Kong’s frothy market aremainland Chinese. They are oftennot really looking for places to livein, but for financial diversification ora place to park their money in casethey fall out of favour in China.(Agents say many of these fancyhomes are not even occupied andrarely rented out because wealthymainland Chinese believe new trophyapartments lose value if they areperceived to be “second-hand”.)Aesthetics, after all, are not arequirement when you open theequivalent of a Swiss bank account.

Pollfever HKstyleHong Kong is in the grip of electionfever but the campaign is notproving an inspiring test-run for fulldemocracy. Columnists dubbedHenry Tang the favourite as chiefexecutive, Hong Kong’s de factomayor, because Beijing believes hehas the support of the civil service,which he currently heads as chiefsecretary. The trouble is, his supportfrom the man on the street slippedafter he dismissed concerns aboutaggressive policing during the visitof Chinese Vice Premier Li Keqiangin August as “complete rubbish.”

Earlier this summer, at a timewhen the public mood in Hong Konghad soured against the city’sproperty tycoons, Mr Tang suggestedthat young people stop complainingand work on emulating Li Ka-shing,Hong Kong and Asia’s richest man.

Mr Tang is the oenophile son of aShanghai textile tycoon and HongKong’s government has long beenessentially a plutocracy. But, as away of winning public support in acity with the highest incomeinequality in the developed world, itwas an odd remark, recalling formerTexas governor Ann Richard’s crackabout George Bush Sr. The late MsRichards quipped that Mr Bush hadbeen born with a “silver foot in hismouth”. Mr Bush went on to win the1988 presidential election, anyway.Perhaps Mr Tang can afford to beforthright to the point of beingimpolitic because he is believed tohave the vote that counts – that ofBeijing’s leadership.

Outf lanking China’sopera censorsHong Kong Opera might haveexpected a pat on the back forproducing an original work on SunYat-sen, the father of the ChineseRepublic, set to coincide with the100th anniversary of the 1911revolution next month. The worldpremiere was slated for September 30at Beijing’s National Centre forPerforming Arts, a titanium andglass fantasy rising out of anartificial lake. However, theproduction in China’s capital hasbeen cancelled, officially for“logistical reasons”, but mostobservers blame censorship. Themystery is what might haveoffended Beijing’s censors. Some betthat the love story of Sun and SoongChing-ling, who was his third wife,might be the culprit. The premierewill now be in Hong Kong onOctober 13.

Lars Nittve, the former director ofLondon’s Tate Modern, who nowleads Hong Kong’s contemporary artmuseum in the making, recentlyargued the city could be a regionalarts centre because of its tradition offree speech. Beijing’s loss may beHong Kong’s gain – just as Beijing’sreluctance to allow the renminbi tobe freely convertible is partlyresponsible for putting Hong Kong inthe happy position of being China’sfinancial centre for the foreseeablefuture.

[email protected]

Taxing problem offoreign creditsA harmonised corporate tax base could help curb abuses

US tax authorities are finally find-ing their teeth. After a long battlewith politicians, the Internal Reve-nue Service appears be tougheningits stance on international taxarbitrage that leaves taxpayersshort-changed.

A joint investigation by theFinancial Times and ProPublica,the not-for-profit news organisa-tion, has revealed the extent of anarrangement between UK and USbanks to profit from foreign taxcredits through cross-border trans-actions. The IRS claims the solepurpose of these transactions wasto generate artificial foreign taxcredits, which the banks deny.

Tax arbitrage has always been athorny issue. Traditionally policy-makers support a tool seen toenhance competitiveness, whiletax collectors are against the lossof revenue. That was certainly thecase in the US, where first Con-gress in 1998 and then the Bushadministration in 2001 put a halt toany real attempt by the Treasuryto crack down on tax arbitrage.

The aggressive stance now beingtaken by the IRS shows a shift isunder way. This is all for the good.After all, abusive tax arbitrage ismerely a way for companies andbanks to acquire subsidies fromunsuspecting taxpayers. The factthat tax arbitrage was at its heightduring boom times also raises the

question of just how real werebanking profits.

But, on its own, the US effort isnot enough. International action isneeded. Governments must domore to track potentially abusivetransactions, even if they benefit.Yet, even more crucial is the needfor the international community tojoin forces to define a simplifiedand common corporate tax base.Countries will then be free to com-pete for investment on the farmore transparent basis of taxrates, and tax collectors will bebetter equipped to spot potentialabuses.

The Organisation for EconomicCo-operation and Development, asthe Financial Times reports today,has asked member states to con-sider common measures to helpfight tax avoidance. The OECD’sinitiative should be given seriousconsideration as a first step.

Tax arbitrage will survive aslong as there are different fiscalsystems, and tax avoidance is notagainst the law. But a host of com-plex and incomprehensible sys-tems leaves ample scope for abuse.With the shift in US policy nowevident and support among someEU member states, there has neverbeen a better opportunity to movetowards the goal of a harmonisedtax base. Failure to do so would bea grave mistake.

No Saudi springPromise of vote to female citizens is too little, too late

Even if the latest promise of grant-ing marginal political rights toSaudi women could be believed, itwould be too little, too late. KingAbdullah has good intentionsregarding their position, but anystep forward on rights tends to bematched by two steps back – andnot just for women.

The king consulted with clericsbefore announcing women couldvote in the next municipal election– though not the one due this week– and join the royally-appointedMajlis ash-Shura, a consultativebody with no real power. The cler-ics’ consent suggests they see thepromise as sufficiently meaning-less not to pose any threat to theWahhabi establishment.

They are right. This promise hasbeen made before – when munici-pal elections were first held in2005, women were also told thatnext time they would be allowed tocast their ballots. Not only did ittake six years for “next time” toarrive; women have now been soldthat particular horse twice. No oneknows how long it will take beforethe new promise is tested. In themeantime, the rules that makewomen the wards of male relativesin even the tiniest legal matter –and the no less offensive ban ondriving – remain in place, thread-ing women’s lives through endlesshumiliations and impracticalities.

Gentle pressure by Saudi women– especially in business, wherethey have made inroads – com-bined with a need to pay lip serv-ice to global standards and genu-ine interest in reform has occasion-ally prompted tiny steps forward.In 2009, a woman was appointeddeputy minister for education, andsome limits put on clerical controlover syllabuses and television con-tent. But when it counts, theforces of reaction have the upperhand. When the Arab spring sweptover the region this year, the kingsided unequivocally with the sta-tus quo. Instead of reform came acash splurge to buy the people’squietude, more power for the secu-rity forces and religious police, alaw making it a crime to criticiseclerics and tanks to suppress theuprising in neighbouring Bahrain.

Saudi policy is racked by rival-ries within the House of Saud andthe inherent uncertainties ofgerontocracy. But the rulers seemunited in defying the march of his-tory by holding on to their form ofgovernment: absolute monarchybalanced only by fundamentalisttheocracy. In particular, they showno sign of permitting any politicalparticipation that would permitminority Shia to press theirclaims. Not only women, but alldisenfranchised Saudis will haveto bide their time a while longer.

Labour’s visionEd Balls fails to present a clear alternative to austerity

If the job of any opposition minis-ter is to criticise the government,to present alternatives to its policyand to persuade voters to supportyour ideas, then Ed Balls has asomewhat mixed record as shadowchancellor.

On the first count, he has cer-tainly been a success. Since takingover in January, he has beenunsparing and vocal in his criti-cism of the coalition’s austeritypolicy, warning tirelessly that itwas cutting the deficit too hardand too fast. At a time when theeconomy overshadows every otherpart of British politics, he hasraised Labour’s profile.

But on the second and third, MrBalls has made less headway. Inspite of an anaemic recovery – onethat would appear to have borneout his warnings – he has failed tocome up with a persuasive alterna-tive. In part, that is because anymessage would struggle to getthrough. Public trust in the opposi-tion’s economic competence is low.A recent YouGov poll underscoresthe problem. While a majoritybelieves that the coalition is man-aging the economy poorly, theTories still have a lead overLabour as the party most trustedto fix the UK’s economic problems.

Trust must be rebuilt for Labourto be listened to. Mr Balls under-stands this. Hence his promise to

subject Labour’s future economicplans to tough fiscal rules over-seen by the Office of BudgetResponsibility. But he will con-tinue to struggle so long as theopposition is perceived not to offera real alternative to the coalition’splans. Mr Balls’ speech to theLabour conference illustrated theproblem. While promising a “stead-ier and more balanced” plan toreduce the deficit, Mr Balls admit-ted that Labour would not reversethe cuts and tax rises the coalitionhad pushed through. Voters couldperhaps be forgiven for not under-standing just what Labour woulddo differently.

Mr Balls came up with severalideas of how to pep up growth.Some of these smacked of pop-ulism, such as the proposal toapply another bonus tax to thebanks and use the proceeds insome unspecified way to guaranteework for 100,000 young people.

But the most eye-catching ideasinvolved bringing forward invest-ment projects and temporarily cut-ting National Insurance for newhires to encourage companies toinvest and take on workers. Theseare not bad ideas. They may alsobe ideas that the coalition is itselfconsidering. If the governmentdoes ultimately adopt them, atleast Mr Balls will have positionedhimself to score a few points.

HP’s indestructible number cruncherFrom Mr John Townsend Rich.

Sir, Tim Bradshaw’s welcomesalute to the venerableHewlett-Packard 12c calculator(“Unchanged after 30 years, thehandheld device that remains amust-have”, Business Life, September23) failed to point out one of themain features: its apparentindestructibility. I have used two12c’s for many years, one at homeand one at the office, and I cannotremember even the decade in whichI bought them. I have dropped themwith dismaying frequency, yet theycontinue to soldier on. The batterylasts so long that I have trouble

remembering how to replace it.Definitely not “designed to fail”.Hewlett-Packard’s reputation issecure with me on the basis of thisone product, and I wish it well.John Townsend Rich,Bethesda, MD, US

GOP leadershipshould not meddlewith the FedFrom Mr Kenneth A. Guenther.

Sir, Richard McGregor’s finecolumn (“Tea Party drivesRepublicans on long march toBernanke’s door”, September 23) laysthe responsibility for theunprecedented Republican assault onthe independence of the FederalReserve at the feet of the Tea Party.Unfortunately it is more serious thenthat.

It was the Republican leadership ofboth the House and Senate – not theTea Party – that sent the letter toFed chairman Ben Bernanke urgingthat the Fed not “consider additionalmonetary stimulus proposals”.The letter specifically targeted thedeliberations of the Fed’s monetarypolicy committee, which was meetingin Washington.

With the Congress making a messof their fiscal policy responsibilities,today’s Republican leadership hasturned its attention to running thenation’s monetary policy.

And, astoundingly, their policyadvice was for the Fed to donothing. No doubt financial marketstook note of this misguidedintervention and policy advice asthey sold off last week.

Disturbingly, the rhetoric of thetwo leading Republican presidentialcandidates Mitt Romney and RickPerry gives support to thisCongressional Republican leadershipmeddling.

They should be reminded that allrecent American presidentssupported an independent FederalReserve. For example, both PresidentCarter and President Reagan kepttheir hands off Paul Volcker’saggressive and then controversialinterest rate policy that broke theback of the great inflation of the1970s.

Yes, Tea Party leaders likeRepresentative and presidentialcandidate Ron Paul have longadvocated doing away with the Fed.This has found little support inmainstream Republican ranks

Mr McGregor suggests that theRepublican mainstream is all that isstanding “between the central bankand the Tea Party wolf now at theFed’s door”.

The anti-Fed wolf, however it isdefined, benefits when the financialleadership abdicates itsresponsibilities to speak out insupport of the Federal Reserve’smonetary policy independence.

A weakening of the FederalReserve further weakens ourfinancial and economic system at amost crucial time in our moderneconomic and financial history – tothe further detriment of ourfinancial system and its customerbase.Kenneth A. Guenther,Chevy Chase, Maryland, US

Cyprus drilling isnot provocationFrom Mrs Mary Karaolis.

Sir, We were appalled to readDaniel Dombey’s article “Ankarashows region its assertive side”,September 21). Mr Dombey impliedthat the Republic of Cyprus wasbeing provocative by undertakingexploratory drilling for gas in itsown territorial waters. The EuropeanUnion, UK, US and all nations andorganisations that abide byinternational law unequivocallysupport Cyprus’s right to explore itsoffshore waters.

A subheading such as “Cyprusclash signals rising self-belief”ignores the fact that Turkey’saggression towards Cypruscontinues. In 1974 Turkey illegallyinvaded Cyprus and ethnicallycleansed 200,000 Greek Cypriots (whomade up more than 80 per cent ofthe population), from 38 per cent ofCyprus territory in the north, and itstill occupies their land and homeswith 40,000 troops and 200,000 illegalsettlers transported to colonise andchange the demography of northernCyprus, thus ignoring the GenevaConvention. UN Security Councilresolutions 541 (1983) and 550 (1984)declare the self-proclaimed TurkishRepublic of Northern Cyprus “legallyinvalid” and call upon all states notto assist this illegal secessionistentity in any way since to do so willlend credibility to the invasion,occupation and colonising ofnorthern Cyprus.

Is the FT now trying to justifyTurkey’s aggressive stance not onlyagainst Cyprus but also Greece andIsrael?

Cyprus’s intention to ensure thatany gas deposits are exploited for thebenefit of all Cypriots, irrespective ofethnic origin or religion, has beenclearly stated. However, it istotally unacceptable that Cyprus’ssovereign right to exploit its ownnatural resources should besurrendered and that the countryshould be held hostage byTurkey, which is illegally occupying,with troops and settlers, thenorthern part of the Republic ofCyprus.

The international community, withthe sole exception of Turkey and, itwould appear, Mr Dombey,recognises the sovereignty of theRepublic of Cyprus as well as itslegally delineated exclusiveeconomic zone in which the drillingwill occur.Mary Karaolis,President,Association of Rizokarpassoin Britain,London N3, UK

Painters on Edinburgh’s Forth Bridge in 1951, when paint didn’t last 25 years Getty

From Mr Ron Hobbs.Sir, The HP12c has absolutely

stood the test of time (I got my firstin 1983 and still use it most weeks) –but replacement batteries arestarting to become an issue. And notjust in Zimbabwe.Ron Hobbs,Nr Bulawayo, Zimbabwe

Strong action necessary to douse Greek f lamesFrom Prof Jean Pisani-Ferry andothers.

Sir, Strong and co-operative policyaction inspired by clear views aboutthe future shape of the euro area isneeded now. As French and Germaneconomists, we agree on a number ofsteps that should be taken now.

The very limited Greek debtreduction proposed on July 21 isinadequate. Bondholders should takea cut of about half on theiroutstanding Greek government bondportfolios.

To ensure stability, this debtrestructuring process could becombined with an offer to exchangeGreek sovereign bonds for securitiesissued by the European financialstability facility.

Every Greek bond with a nominalvalue of €100 could be exchanged foran EFSF bond worth €50 (say). Theoutstanding volume of Greek debtwould consequently be transferred tothe EFSF’s portfolio.

Under this plan the EuropeanCentral Bank would have the optionof swapping its holdings of Greekbonds at their purchase price forEFSF bonds.

Banks that have invested heavilyin Greek sovereign bonds wouldrequire special support. This appliesfirst and foremost to Greek banks.The EFSF could be mandated tocontribute the necessary capitalinjection, in addition to fundsearmarked for recapitalising Greekbanks included in the InternationalMonetary Fund/European Unionprogramme.

Banks in most other countriescould be recapitalised by their ownsovereign, though EFSF money couldalso be provided if required. Thisaction should be expedited, even if itis politically unpopular.

This move might trigger contagionto other vulnerable euro-areacountries. This would not pose a bigproblem for Ireland and Portugal, asthey will be fully funded by theEFSF/IMF for a number of years.Spain and Italy should step up theirgrowth-promoting structural reformsand apply, if necessary, for acontingent credit line from the IMF.

Once solvency problems are dealtwith, one is still left with the risk ofpotential self-fulfilling liquiditycrises.

Ultimately, this risk can bebanished only by resolute andcommon action by the governmentsof the eurozone, the EFSF and theECB.

Such steps would cause short-termpain but would lead to a viabletrajectory for the Greek economy,recapitalised banks in the euro areaand improved confidence.

Improving euro area institutionsand governance, restoringcompetitiveness and growth areindispensable items on the agenda.But, let us just all agree now onputting out the fire as quickly as wecan.Agnès Bénassy-Quéré, UniversitéParis I and CEPIIPeter Bofinger, University ofWürzburgElie Cohen, CNRSLars Feld, University of FreiburgWolfgang Franz, ZEWPierre-Olivier Gourinchas, UCBerkeleyJean Pisani-Ferry, BruegelHélène Rey, London Business SchoolChristoph Schmidt, RWIBeatrice Weder di Mauro, Universityof Mainz

All good metaphors come to an endFrom Mr Neil Cowan.

Sir, I enjoyed “The complexities ofsimplifying” (Business Life,September 22). But the final bulletpoint of advice shows the authors’range of metaphors may needsimplifying as they seem unaware of

a previous article on September 6:“Painting the Forth Bridge finally setto end” (FT.com).Neil Cowan,Business Development Director,Publicis Chemistry,London W1, UK

Correction● Grigori Marchenko, governor ofthe National Bank of Kazakhstan,was speaking only on behalf of thebank when he said that it did notwant to work with Morgan Stanleyand Goldman Sachs. He was notspeaking for the Kazakhgovernment or other Kazakhinstitutions as suggested in anarticle on September 8.

Search for an IsraeliPalestinian visionFrom Mr Gustaf Almenberg.

Sir, Dramatic as it may seem, theissue whether or not to grant thePalestinians statehood precedingnegotiations (Philip Stephens,Comment, September 16) andStephen Latner’s letter (September23) is just a consequential problemand does not alter the fundamentalproblem.

This is that there are neitherenough shared values nor enough ofa shared perceived reality across thewhole political spectrum withinIsrael as well as among Palestinians– let alone between the two sides –necessary to create a foundation on

which any believable peacenegotiations could be built.

Too little effort has gone intocreating a joint Israeli-Palestinianvision of the benefits of a negotiatedpeace in order to get the necessarybroad buy-in from both sides for anybelievable peace negotiations to takeplace. Instead too much effort hasbeen focused on strategies for peace(including negotiations).

This, however, is to put the cartbefore the horse. Why, then, do weexpect the peace process to moveforward?Gustaf Almenberg,Dalby, Sweden

COMMENT ON FT.COMSaving the euro IIIVincent Boland and Nikki Tait on whetherthe eurozone’s rescue is in sightwww.ft.com/lexvideo

RTSMicex won’t stifle competitionChief of new combined Russian exchangesays ‘vertical silo’ fears unfoundedwww.ft.com/tradingroom

NOTEBOOKRahul Jacob

SEPTEMBER 27 2011 Section:Features Time: 26/9/2011 - 19:34 User: mcadamd Page Name: LEADER EUR, Part,Page,Edition: EUR, 10, 1


west, and that gives some credenceto the idea that there are universalvalues that all major powers shouldendorse. It was Mr Medvedev whoworked closely with the US on the“reset” that has seen Russian-American relations improve sharplysince the nadir of 2008 and theRusso-Georgian war – allowing theUS and Russia to make progress onarms control. When Nato moved tointervene in Libya, Mr Putin in theprime minister’s office was openlyhostile to the idea. But Mr Medvedevat the Kremlin was much morenuanced and may have preventedRussia vetoing the UN resolutionthat allowed intervention.

Russia remains a majorgeopolitical player that still thinksand acts like one of the big, globalpowers. Unfortunately, Mr Putin’sview of world affairs is marked by anostalgia for the “respect” (or fear)that Russia commanded during thecold war – and by a deep suspicionof the west. According to the Putinworld-view, the Americans and theEuropeans deliberately tookadvantage of a period of Russianweakness in the 1990s, to betraypromises and to enlarge Nato up tothe borders of Russia, and then tofoment anti-Russian “colour

Italians are fantasists. Reality’s notgood enough for them. In his latestnovel, The Pregnant Widow, MartinAmis describes Italy in the eventfulearly 1970s. Forty years later, it mayseem that things haven’t changed.We – Italians – have long beenescapists, ruled by the ultimatepolitical escape artist. SilvioBerlusconi is not only our longestserving postwar prime minister; he isalso an illusionist, who knows hisaudience well. But he be may bestarting to lose his touch.

Mr Berlusconi built his fortunes onour weaknesses. He is a hyper-populist – a combination of JuanPerón, Vladimir Putin and FrankSinatra. He can sing, he can act, hecan be charming and ruthless, andhe knows how to talk to people whoprefer face-to-face to Facebook. Hetold us what we wanted to hear. Asdetails surfaced of his wild partieswith young girls who used to callhim “Papi”, he explained: “I workhard and in the evening I need tounwind.” This is music to manymarried men’s ears. In her earlydays, Madonna screamed: “Papa,don’t preach!”. Well, Papi Silviocertainly doesn’t and never did.

But a stagnant economy worriesvoters. Corruption scares awayinvestors. And what does the primeminister do amid the fear, the scornand the storm? He schemes againsthis own finance minister, GiulioTremonti; he juggles four criminaltrials, on charges of bribery, taxdodging, embezzlement andpatronising an underage woman forsex (he denies any wrongdoing); andhe answers phone calls from youngwomen who want favours afterattending his “bunga bunga” parties.

Mr Berlusconi has survivedcountless forecasts of his departure,

but his time may finally be up.Emma Marcegaglia, president ofConfindustria, the industrialists’association, which is usually cosywith Italy’s centre-right governments,is furious: “We are fed up with beingan international laughing stock,” shesaid. “Across Europe and in Americafirst they condemned us; then theypitied us; now they spur us on, as ifto say: ‘Come on! Italy may have itsproblems, but it can do better thanthis.’” This is new. Those who loveItaly, and/or do business with us,realise we now need encouragement,not derision, because Italy iscurrently crossing a treacherousborder – perhaps the third and finalsuch crossing, as far as MrBerlusconi is concerned.

The first border was betweencomplicity and embarrassment.We crossed it in 2009, 15 yearsafter Mr Berlusconi’s first stint ingovernment, with the revelations ofthe prime minister throwing wildparties in his residences in Romeand Sardinia, with very young girlsin attendance. The surprise visit toone of them by Noemi Letizia, onthe occasion of her 18th birthday,cost Mr Berlusconi his wife Veronicaand also shed light on his unusualpersonal lifestyle.

The second border dividesembarrassment from irritation andshame. In the past two years, Italyhas been hit by an avalanche ofsleaze. And the prime minister hasappeared to be surfing on it,seemingly undaunted. Among manyspectacular allegations was a reportthat he abused his office to cover uphis relationship with an underageMoroccan girl, and that he paid herfor sex. The impression is that, atthis point, many centre-right voters“crossed that border” from feelingembarrassed to irritation and shame.Last spring, local elections in Naplesand Milan, Mr Berlusconi’s hometown, confirmed this: the primeminister’s candidates were thrashed.

Today Italians stand on the thirdborder, this time between shame andanger. The euro crisis looms large,given that on September 20 Standard& Poor's’ cut Italy’s credit rating byone notch to a single A. The editorof Il Sole 24 Ore recentlysummarised Italy’s woes, pointing to“the fragility of the governmentcoalition, the embarrassing chain ofscandals that directly affect theprime minister, his ministers andtheir immediate associates, and apersistent inability to take painfulbut necessary decision”.

All of this adds up to a worryingpicture, especially as the countrycelebrates its 150th birthday – twiceas many as Mr Berlusconi, who is 75on Thursday. Eventually, evenfantasists must give up theirfantasies. The time is surely right forthe escape artists to make room forthe professionals. This time, at last, Ithink it is going to happen.

The writer is a political commentatorand author of Mamma mia!Berlusconi’s Italy Explained forPosterity and Friends Abroad

Beppe Severgnini

How at lastmy fellowItalians fellout of lovewith Silvio

‘I told you so’ is not enough to save a left in crisismood in Europe. What started out asa failure of unfettered markets isnow seen as a crisis of public debtand government deficits.

Much as voters share many of thevalues of social democratic parties,they trust the centre-right more toclear up the economic mess. Theflipside of feeling sore about deepcuts in public spending and servicesis a fear that the alternative is moregovernment borrowing and,eventually, higher taxes. Many atLabour’s annual conference inLiverpool this week would say this isunfair. Well, life is unfair.

Mr Miliband’s party is in as muchtrouble as any. The Conservative/Liberal Democrat coalition is farfrom popular. All the signs are thatit has been too eager to slashspending. Economic growth hasstalled. Ministers have been forced toacknowledge that, far from being ashort, sharp shock, austerity will bea fact of life for years. Yet Labourcan manage a lead of only a point orso in the polls.

Mr Miliband badly lags the primeminister in the leadership ratings.Baldly put, he has failed to leavean imprint on the nation’s

consciousness. Even in Liverpool,activists struggle to recall anythingmuch memorable about his firstyear. Many still wish the party hadchosen his brother David for the job.True, the Labour leader bested theprime minister during the furoreabout telephone hacking at RupertMurdoch’s News International. Thatshowed some courage. But I wouldwager that no one beyond thepolitical beltway much noticed.

All the while, the Labour leaderhas presided over a perceptible driftback into the party’s comfort zones.He has a serious point when he saysthat the financial crash marked thefailure of the neo-liberals’ brand ofunfettered markets. But he is notgoing to rebuild Labour’s economiccredibility by proposing a cut in

Value Added Tax or lower universitytuition fees.

It’s also fair to say that Ed Balls,the shadow chancellor, strikes achord when he says the coalition ismoving too far and too fast toeliminate the deficit. Yet voters areless than impressed with hisalternative. The economics are clearenough: fixing the public financesdoes depend on growth. But Mr Ballsis getting the politics wrong. Askedabout economic competence, thevoters prefer David Cameron’sConservatives by a big margin.

Mr Balls is Labour’s strength andits weakness. A strength because heis intellectually confident andtemperamentally pugnacious. He hasa political presence his leader lacks.A weakness because, as GordonBrown’s consigliere and chosen heir,he comes laden with the politicaland economic baggage of the lastgovernment.

The shadow chancellor hails fromthe same the-state-has-all-the-answersschool of centre-left politics. He hasbeen hostile to policies to injectchoice and competition into publicprovision. He insists that hisadvocacy of an immediate economic

stimulus via higher spending andtemporary tax cuts is matched by acommitment to bring the deficit backunder control in the medium-term.Somehow, though, Mr Balls sounds alot more passionate about the needto spend now than about theimperative of cutting later.

What’s missing from the myriaddiscussions and debates in Liverpoolis a model for modern socialdemocracy that fits its aspirations tothe new economic realities. The onecertainty about the politics of thenext decade is that governments arenot going to have much money tospend. Thus far Labour has hadnothing of substance to say aboutgetting more for less.

Nor will Mr Miliband get thenation’s attention if his party soundsas if it is waiting for the economy tocrash into a second recession just tosay “I told you so”. Staking out thecentre ground would start with acredible explanation of how Labour’svalues will be matched to a smallerstate. Governments do sometimesshift the boundaries of politics.Oppositions can only dream.

[email protected]

Miliband is missinga model for modernsocial democracy thatfits its aspirations to thenew economic realities

By Philip Stephens

Gideon Rachman

Europe and America firstcondemned us; thenpitied us; now they spurus on, as if to say, ‘Italycan do better than this’

The IMF must stop playing second fiddle in Europeneeding hundreds of billions of euros– but no new commitments weremade in Washington.

In the short run it is unlikely thatGermany (and northern Europe ingeneral) will put up more money.The Germans are upset at beingasked to support countries that donot seem to want to adjust – unlikeGermany, which is now competitivebecause it endured the pains ofreform. The unwillingness of theGreek rich to pay taxes, or of Italianparliamentarians to cut their ownperks, confirms their worst fears.

The only glimmer of hope duringthe meetings in Washington camewith Europe’s willingness to use theEuropean financial stability facilitymore imaginatively – as equity, forexample, or as first-loss insurance forinvestors. Clearly, some EFSFfunding must go to recapitalisebanks that cannot raise money fromthe markets. But of the rest, theamount not committed to theperipheral economies could then beused to support borrowing by Italyand Spain.

There is, however, no consensus onhow to do this. Some proposebringing the EFSF and the EuropeanCentral Bank together, to leverage

the EFSF’s funds. This is a recipe fortrouble. Giving the ECB a quasi-fiscal role, even one where it issomewhat insulated from losses,risks undermining its credibility. IfItaly was helped, Mario Draghi, theECB’s incoming president, would becriticised no matter how dire thecountry’s needs.

Moreover, financing will have tocome with stronger conditions, andneither of these institutions has theexpertise or the independence fromthe countries at risk to applyappropriate conditions. Both also relyon the same eurozone resources fortheir financial strength. If markets

start to panic about large defaults,they would surely question whethereven a willing Germany had thenecessary capacity to support theEFSF and the ECB combined.

Put simply, the world has torecognise that the eurozone’sproblems are now too big for theeurozone alone to deal with. Theworld has a stake in their resolution.And it has an institution that canchannel help: the IMF.

The IMF could set up a specialvehicle along the lines of its currentNew Arrangements to Borrow systemset up in 1995 following the Mexicanfinancial crisis. The new vehiclewould be capitalised by a first-losslayer from the EFSF, and then asecond layer of the IMF’s owncapital. It could also borrow asneeded from countries, including theUS and China, as well as thefinancial markets, allowing it to offerlarge lines of credit to illiquidcountries such as Italy, withconditions intended to help thesecountries resume borrowing frommarkets at reasonable cost.

Why a special vehicle? Because theamounts needed far exceed levels towhich IMF members usually haveaccess, but given that it is eurozone

countries that need the funds, theyshould bear a significant portion ofany potential losses. At the sametime, the IMF’s capital resourceswould back the vehicle if theeurozone-provided first-loss bufferwas eaten through, so the marketwould understand that there wasstrength from outside the eurozonethat could be brought to bear.

The IMF should start taking thelead in managing the crisis ratherthan playing second fiddle. Theeurozone should suppress anywounded pride, and not onlyacknowledge that it needs help butalso provide quickly what it hasalready promised. Greek debt willsurely have to be restructured, butfunding structures must be in placefor Italy and Spain before anyresolution. This means that othersmust prepare to do their bit, andGreece must step back from thebrink. But the rest of the world mustpitch in quickly: if this crisis isunresolved, no one will be spared.

The writer is professor of finance atthe University of Chicago’s BoothSchool and author of Fault Lines:How Hidden Fractures Still Threatenthe World Economy

The world could do with some gladtidings at the moment, to cope witha global economic crisis and turmoilin the Middle East. Unfortunately,the return of Vladimir Putin to theKremlin does not qualify as goodnews.

International co-operation is badlyneeded for both economic andpolitical reasons, but Mr Putin’s nowinevitable return to the presidency inMarch 2012 will strengthen the forcesof nationalism in Russia. At a timewhen the world’s liberal democraciesare struggling economically andlosing self-confidence, the new-oldRussian president will bolster theauthoritarian camp in global politics.

If Russian foreign policy becomesmore introverted and nationalistic in2012, it may form part of a globaltrend. The US and France are goingthrough presidential elections nextyear, which will limit the time theirleaders can devote to world affairs,and the scope of their actions. Thetop Chinese leadership will alsochange next year, which could wellsee Chinese foreign policy take on amore strident tone. The turmoil inthe Middle East is likely to continuethroughout 2012, as is the financialcrisis within the European Union.

In this situation, the personality ofthe Russian president will mattermore than ever. Russia is one of thefive permanent members of the UNSecurity Council, and remains amajor military, energy anddiplomatic power.

The ease with which DmitryMedvedev, the current Russianpresident, has been eased aside, willstrengthen the cynical view that hewas always a glove-puppet for MrPutin. That, however, was not theassessment of western leaders whohave dealt with Russia over the pastfour years. The Americans andGermans in particular discerned areal difference between the Putinand Medvedev camps.

At home, Mr Medvedev’s rhetoricalemphasis on the rule-of-law and hismore critical view of the Soviet pastseemed to mark him out as arelatively liberal figure.

Internationally, it was MrMedvedev who represented the campin the Russian government that ismost open to co-operation with the

revolutions” in Ukraine and Georgia.Mr Putin’s vision of the world seemsto be based on the idea of a smallnumber of quasi-imperial powers,centred in Washington, Beijing,Moscow, Brussels and so on, jostlingfor power and “spheres of influence”.Fashionable ideas aboutinterdependence get short shrift.

At home, Mr Putin has talkedoften about his belief in reform andhis desire to battle corruption anddiversify the economy. In reality,however, the Putin years saw Russiaturn into a petro-state – where rivaloligarchs battled for the ear of theKremlin, and many of those whocrossed the president ended up inprison or in exile. It is hard tobelieve that a second Putinpresidency will change this well-established way of doing things.

Western leaders comfortthemselves that while Mr Putin maybe bad, he does not appear to bemad. His willingness as president toconfront the US over issues such ashuman rights, Georgia, the Ukraineor Kosovo was almost alwaystempered by a shrewd sense of justhow far he could go. Several westernleaders, including George W. Bushand Tony Blair, initially felt thatthey had struck up a good

relationship with Mr Putin. Mr Blairnoted regretfully in his memoirs thatwhile Mr Putin, as president,eventually pursued a “foreign policyof a very nationalist kind”, theBritish prime minister “never lostthat initial feeling for him or thethought that had circumstancestranspired or conspired differently,the relationship could haveprospered”.

If Mr Putin remains a man thatforeign leaders feel they can dobusiness with, then the return of hishard-edged nationalism to theKremlin need not be a disaster.Unfortunately, it is a well-establishedrule of politics that the longer aleader is in office, the more likely heis to succumb to megalomania andto make major errors of judgment.

Mr Putin has already served eightyears as president and four as primeminister. Now that the presidentialterm has been extended to six years,he is poised for a further 12 years inthe Kremlin. A president whooccupies power for 20 years would bebad news in any country. In a nationwith the tragic history of autocracyof Russia, it is a sad and ominousdevelopment.

[email protected]

The old Russian bear is back

Ed Miliband dreams about redrawingthe boundaries of British politics.Given the havoc wrought by theexcesses of laisser faire capitalism,nudging the political centre ofgravity leftward might seem aplausible ambition for the Labourparty leader. Mr Miliband, though,has overlooked something. Before hecan redefine the centre ground, hisparty must first occupy it.

Social Democrat leaders acrossEurope are seething with frustration.The global crash should have beentheir opportunity: markets had failedand the state was there to pick upthe pieces. Instead, left-leaningparties almost everywhere (Denmarkis a recent exception) are out, orheading out, of power.

A justified rage of voters at therecklessness of the banks has nottranslated into enthusiasm for moregovernment. To the contrary,electorates are sceptical as towhether politicians have theanswers. The centre-left think-tankPolicy Network puts it well in acogent analysis of the post-crash

Raghuram Rajan

Comment

The FT’s AList

● Israel has enough problems withoutbeing exploited as campaign fodder byRepublican evangelical politicians,whose rantings reveal a shockingignorance of the country’s past andpresent, writes Simon Schama

Visit www.ft.com/thealist, foragendasetting commentary

World markets expectedconcrete steps to resolve theEuropean crisis this

weekend. They did not get them. Thebody that sets policy at theInternational Monetary Fundpromised that eurozone countrieswould do “whatever is necessary toresolve the euro-area sovereign debtcrisis”. Sadly, this is based on hope,not evidence.

Hope cannot convince markets attimes like these. With luck, Italymay get a credible government ofnational unity in the next few weeks,Spain could get a new government inNovember with a mandate forchange, and Greece may do enoughto avoid riling the markets. But noneof this can be relied upon.

So what needs to be done? First,eurozone banks need to berecapitalised. Second, enoughfunding has to be available so thatItaly’s and Spain’s needs can be met,if the markets dry up. Third, Greecehas to be managed in a way thatdoes not infect others. All thisrequires financing, with bankrecapitalisation alone potentially

MORE FROMGIDEONRACHMANGo to The World,Gideon Rachman’sforeign affairs blog,for sharp commenton Pakistan’sforeign policy

www.ft.com/theworld

SEPTEMBER 27 2011 Section:Features Time: 26/9/2011 - 19:34 User: mcadamd Page Name: COMMENT EUR, Part,Page,Edition: EUR, 11, 1


Business diary

The public image

A longserving diplomat, Sir Alan Collins was highcommissioner in Singapore when it was announced therethat London had won its bid to host the 2012 SummerOlympics. Now, as managing director for Olympic Legacyat UK Trade & Investment, the government’s tradepromotion branch, he is charged with ensuring theOlympics delivers longterm benefits for business.

Sir Alan Collins UKTI Olympic legacy

I was a member of thedelegation that presentedto the InternationalOlympic Committee. Whenthose people jumped upand down rather sillily inthe cream suits I was oneof those people jumping upand down rather sillily ina cream suit. And eversince then I have beenresponsible for thebusiness outcomes. So I’vehad a long Olympicjourney, and it’s been veryenjoyable.

The Olympics is obviouslythe greatest show on earth,and we’ve got it. It’s thebiggest possible networkingopportunity and thereforewe would be remiss if wedidn’t take maximumadvantage of that while wehave the eyes of the worldon us, and a lot of thebusiness community here.

We’re in touch with a lotof business organisations,like the Confederation ofBritish Industry, and thevery firm impression I getis that their members areaware of this opportunityand are looking for meansin which they can getinvolved and benefit. Theyneed to be askingthemselves whether theyare ready to take mostadvantage of the Olympics.Are they able to be readywith products andmarketing, and a record ofservice that’s going to bematched – and have theygot the mechanisms todraw that to people’sattention?

We have a series ofprogrammes that arealready running wherewe’re trying to get asmuch benefit as we can,both in terms of exportand inward investment.

We’re saying in verybroad terms that we’reaiming to generate at least£1bn in terms of anOlympic business boost.

One of the things wewant to do is get a lotmore companies exporting.We hope that by using theOlympics, we can persuadepeople that if yourproduct’s good enough forthe Olympics, why aren’tyou selling it somewhereelse in the world?

Last week I went down toWeymouth on the south-west coast, where they willhost the sailing. I met thelocal political leaders, thelocal business leaders andwe discussed what theycan do to take advantageof the fact that they havea branch of the gamesdown there. We had a verygood meeting – they cameup with all sorts of ideasabout how they couldestablish physical locationsfor companies to meet, andwhere they could offerhospitality, and how theycould start to trackimportant people who werecoming down and showthem the merits ofinvesting in that area.

Of course it’s not easy toattract inward investment,but I wouldn’t say that it’sa job that we finddaunting. We’re not justsimply trying to attractcompanies that are goingto fail here. We want highvalue companies, top endinvestment that’s going towork in the UK, expand inthe UK, provide long-termsustainable growth in theUK. The competition isgetting stiffer, so that wehave to work even harder,and be even moreproductive, as othercountries begin to definetheir own investmentpropositions. Europe andthe US are still the majorsources of investment inthe UK but we have tolook to the future as well –to India, China, Russia,Brazil.

We took the decision thatit wouldn’t be sensible tocreate a big Olympicsunit. We want theOlympics to be somethingeverybody in thisorganisation is thinkingabout, using thatproposition in everythingthey do. So there’s anarmy of people barrellingaway on the Olympics, butthey’re all doing it as partof their day job as well,and that’s how it shouldbe. There are not thatmany people who are justworking on the Olympicsthe way I am.

As told to VanessaKortekaas

Client: HariboAgency: TBC, BaltimoreTerritory: UKVerdict: ★★★★☆

The style is children’stelevision kitsch. The set is avillage shop with a red pillarbox, a single petrol pumpand its own flock of baaingsheep. A perfectly nuclearfamily on a day trip stops forsupplies. The grinningdaughter turns up a jauntyjingle on the car radio. Theson skips from the shopbrandishing not just anypacket of sweets, butHaribo’s “bag full of fun”Super Mix.

As the lyrics appear on thescreen karaokestyle, theecstatic clan breaks intofullthroated praise of thefruitflavoured confectionery.There are just 16 words inthe whole song – or 15 ifyou count the repetition inthe father’s cry of “squidgy,squidgy baby!”

From the son’s shaky first

note onwards, everythingseems deliberately off key.The American accents areatrocious while the actorsare too enthusiastic to passfor British.

The campaign was shot inthe US, home of cerealadaesthetics, but developed inthe UK, with its tradition ofparody.

It reflects the growingtrend in marketing forrepresentations of the“conventional” nuclear familyto be more ironic thansomething to aspire toseriously. At the same time,it taps into industry debateabout the value of pastichingappalling ads.

Nominally aimed at “mumsand families”, the ad showshow parody can helpadvertisers reach beyond theimmediate target audience –in this case young digitalnatives who have respondedwith several YouTube spoofs.Job done.

Kesewa Hennessy

Ad deconstructedHaribo’s Super Mix campaign

Are radicalinnovationsa thing ofthe past?

It is a rash commentator whocalls the end of history. Suchdeclarations, as FrancisFukuyama discovered, tend to

be made on the eve of wrenchingchange. Even so, despite the mass ofmanagement thinking forced betweenhard covers and carpet-bombedweekly on to cowering readers, it ishard to identify radical innovationsfrom the past decade and temptingto think great breakthroughs are nolonger possible.

Plenty of thinkers would beg todiffer. Ten years after Good to Greatwas published, Jim Collins is back asco-author of a new book, Great byChoice, touted as “groundbreaking”despite its derivative-sounding title.Michael Porter believes “creatingshared value” will mark a turningpoint in economic history, thoughcritics claim his latest idea iscorporate social responsibility undera new guise. Gary Hamel,meanwhile, is promoting the open-access Management InnovationeXchange – “the MIX”, an onlineclearing house for management ideas– as the vehicle for nothing less thana reinvention of the discipline.

In May, Prof Hamel blogged that“the emerging ‘social technologies’ ofWeb 2.0 are likely to transform thework of management root andbranch”. He laid down an “e-gauntlet”to organisations to share ideas abouthow they were becoming “moreadaptable, innovative, inspiring andaccountable”. A few cynics havefallen into the MIX (though thecontributor who offered a lapidarycontribution headlined “innovationsucks” seems to have disappearedfrom the site). But the winners of

the first phase of the prize mostlydefy scepticism – mainly because theimprovements they propose seem tobe working in practice.

My favourites? Dutch civil servantshave beaten bureaucracy to sharespare office space, improvingcollaboration and cutting costs.Morning Star, a Californian tomato-processor with no formal hierarchy,has put online the “colleague lettersof understanding” it uses instead ofjob contracts. Individuals outlinetheir “commitments”; colleaguesreview and rate how they havefulfilled them. Stanford University’sJames Fishkin is pioneering a betterway for complex organisations toconsult diverse groups ofstakeholders – the “deliberativecorporation” – and reach well-informed decisions, unskewed byaccidental bias or special pleading.

The rhetoric of the seven winningpitches – or “hacks” as the MIXannoyingly insists on calling them –is lofty. Rite-Solutions, an employee-owned software company, says its“innovation engine” to make everymember of staff feel more relevant is“provoking and aligning individualbrilliance toward collective genius”.But none of these winners offers aroot and branch transformation. BestBuy’s initiative has led to betterin-store signage at the electronicsretailer; the one from Essilor, whichmakes spectacle lenses, has improvedtraining. Very few winners comefrom organisations in the fast-developing markets of Asia or LatinAmerica. Only a minority – includingMorning Star and Rite-Solutions –upend the traditional corporatestructure. Cemex, the Mexican

cement company, says its internalcollaboration platform was theresponse to “challenges set by theCEO and executive committee” –about as top-down as you can get.

Lenny Mendonça of McKinsey,co-sponsor of the prize, says that with“technology outpacing traditionalvehicles” for such ideas (books,academic journals), one aim was toprovide a forum for new ideas thatmight not otherwise get aired. It isearly days, more challenges areplanned, and it is no bad thing tomake a series of small bets.

Prof Hamel says the pace ofchange is putting pressure onorganisations to make more radicalchanges. New tools allow companiesto exploit collective wisdom inunprecedented ways, and youngerworkers – the “digital natives” – areimpatient with old hierarchies andvalue systems. “I would be willing tostake my reputation that we will seemore dramatic change in the waymanagement is organised in the next10 years than we’ve seen in the last60 or 70,” he told me last week.

But while I’d be happy to beproved wrong, I think the technologyfuelling these small-scaleimprovements makes a “eureka”moment less likely. As in productinnovation, the fact that managerscan identify, share and matchadvances, favours rapid evolution,rather than revolution, with bestpractice continuously revised andimproved. Progress, yes: but more byleapfrog than by giant leap.

[email protected] Hill blogs atwww.ft.com/businessblog

Andrew HillOn management

Technologyfuellingsmallscaleadvancesmakes a‘eureka’momentless likely

Fables for board tables

In a small white room in centralLondon, a man clad in a RalphLauren shirt and jeans standsup, pushes his hair back from his

face and tells 11 people seated on plas-tic seats about the time his rock bandemptied a room of partygoers. Then,as he looked around the empty room,he tells the group, he contemplatedputting his guitar back in its case andgoing home. Instead, his band decidedto stay, play the best they could andenjoy themselves.

This man is not a rock star (asidefrom in his head). He is a businesspsychologist on a one-day courselearning how to tell better stories toexecutives. And the purpose of shar-ing this memory is not a personalcatharsis, rather it is to demonstratethat sometimes at work the bestoption is to pull yourself together andget on with it.

The one-day course is held by RogerJones, who advises executives on tell-ing stories. “Every day we are bom-barded with more and more informa-tion and our business world is becom-ing increasingly complex,” he says.“We need a better way to persuadepeople, get your messages to stick andinspire people to take action. Power-Point presentations make audiencesdoze off, facts and figures often borepeople.” Stories are not just forspeeches, but can be used in companyliterature or marketing.

Peter Gubar, the Hollywood pro-ducer, has written a book, Tell ToWin, putting the case for stories.“Telling a purposeful story in a busi-ness environment where vital infor-mation is embedded and grows organ-ically in the narrative is singularly

The art of storytellingcan help companiespersuade and inspiremore effectively, writesEmma Jacobs

focused, innovative and personable”.It is important to read the audience

right, says Mr Jones. He recalls onechief executive who wanted to tell afunny anecdote displaying his tri-umph over adversity. The only prob-lem was this story was about theproblems he had repairing his leakycountry house which was worth mil-lions. The audience was made up ofmanagers unlikely to be earning morethan £40,000, who would never in theirwildest fantasies be able to buy acountry pile. “Great message, wrongaudience,” was Mr Jones’s verdict.

Storytelling goes wrong, saysGina Rudan, the author ofPractical Genius, when it lacksauthenticity or truth.

Clarity is also key, says Mr Den-ning: “If the leader is unclear, thestory will probably reveal this.”

Another common mistake is forleaders to tell a story “that revealsunwittingly that the change will begood for the organisation but not sogood for some people in the organisa-tion, for example the audience”.

Worse still is for someone to tell astory that is factually accurate butthat omits crucial details, adds MrDenning. “An example would be totell a story like the following: ‘Sevenhundred happy passengers reachedNew York after the Titanic’s maidenvoyage.’ End of story.”

He is sceptical about speechwriters.“The story is merely the conduit bywhich the leaders’ passion is transmit-ted. So if leaders are reading a speechwritten by someone else, it’s going tosound hollow and borrowed. Therewill be no passion to transmit. Thestory will be ineffective at best and,more likely, counter-productive”.

Nonetheless, speechwriters can beuseful in suggesting themes, subjectsand even wording, he suggests. “Butthen having received these sugges-tions, the leader should throw awaythe written material and practice giv-ing a speech from memory, conveyingwhat they feel about the subject.”

their organisation’s values, get theirpeople to embrace change and inspireeven higher levels of performance”.

Of course, stories cannot alwaysreplace facts. For example, when itcomes to sharing critical skills, saysMr Jones: “You certainly wouldn’twant a pilot to learn their job by lis-tening to or reading stories.”

Storytelling is often dismissed as“fluff” by businesspeople focused onthe bottom line, says Mr Jones, whoconfesses he does not use the term“storytelling” to high-level executives.Instead, he prefers the loftier tags“executive presence” or “narrativecase studies”. “They love it,” he grins.

Stories come naturally to employersand employees, he points out. We justdo not necessarily identify them assuch. A new chief executive may tellstories demonstrating how great thecurrent regime is and how bad theprevious one was. Negative stories,Mr Jones adds, are often more dis-cussed in an organisation than posi-tives – for example those about redun-dancies and culture clashes due tomergers.

He cites examples of where story-telling has been used to good effectwithin companies. Xerox, whichmakes photocopiers and printers,identified that its engineers found iteasier to learn how to fix machines bytrading stories rather than readingmanuals and so created Eureka – adatabase containing repair anecdotes.

Innocent Drinks, the UK soft-drinkmaker, has an origin story on its web-site that recounts how the foundersdecided to take the plunge with theirbusiness by putting up a sign in frontof their drinks stand asking: “Do youthink we should give up our jobs tomake these smoothies?” They putout a bin labelled Yes and a binlabelled No and asked people to puttheir empty bottle in one of the bins.At the end of the weekend, the Yesbin was full so the next day the trioresigned from their jobs. The effect ofthe story, says Mr Jones, is to makethe company appear “customer-

‘Can youthink ofanyonewhoturnedaround asituationwho didn’tuse astory?’

How to tell a storyRoger Jones’s tips:

● Before writing, thinkwhat you want to achieve

● Find a story thatreinforces the key message

● Make sure the story willresonate with your audience

● Make sure it has abeginning, middle and end.Include an element ofsurprise to sustain theaudience’s interest

● Make sure you areinterested in the story – ifyou’re not, this will comeacross

● Ensure it has a challengeyou or your company hadto overcome

● Say what you learntfrom overcoming it

● Keep your story concise.In a speech it should be nolonger than two to threeminutes.

Once upon a time:stories canawaken audienceswhile PowerPointpresentations andspreadsheets canput them tosleep

Montage: FT graphics

the best way to energise a product orservice into a call to action.”

Jon Moulton, the buy-out veteran, isa self-described “enthusiastic user ofparables” who believes “stories arebetter than facts”. “Most buy-outs arebased on ‘sustainable ebitda’” – whichin itself may be “implausible” fiction.In fact, he muses: “A lot of CEOs aremuch safer telling stories than run-ning the business.”

“Can you think of anyone whoturned around a situation who didn’tuse a story?” asks Stephen Denning,who, after holding a series of manage-ment positions at the World Bank,published five books on leadershipstorytelling. “If you think of all thegreat religious leaders, philosophers,generals, [political] leaders, what dothey have in common? They were allgreat storytellers”.

In his own experience, he says, tell-ing the right story was “crucial in mysuccess in persuading in 1996 theWorld Bank – a notoriously change-resistant organisation – to make afundamental shift and embraceknowledge management as a centralstrategic thrust”.

Nonetheless, says Mr Jones, “fewmanagers and leaders use storytellingas a strategic tool to communicate

Business Life

SEPTEMBER 27 2011 Section:Features Time: 26/9/2011 - 18:08 User: wrightj Page Name: BusinssLife EUR, Part,Page,Edition: EUR, 12, 1


Arts

The financial outlook may berestrictive, but at least theimagination has not been cramped.Last weekend saw the SouthbankCentre’s two resident symphonyorchestras – the LondonPhilharmonic and the Philharmonia –embarking fully on the 2011/12season, and their programmes wereanything but timid or conservative.

On Saturday, the LPO gave theRoyal Festival Hall’s lighting systema good workout. Programme notesregularly tell us that Scriabin hadvisionary ideas about presentingmusic as light and colour, but it isnot often that anybody tries. For thisperformance of Prometheus, thecomposer’s “light keyboard” becamea newly commissioned light show onthe hall’s ceiling by Lucy Carter, notas dazzling as one imagines Scriabinhad in mind but a decent attempt todeliver the impossible.

Having settled on Prometheus asthe theme, the orchestra’s principalconductor, Vladimir Jurowski, alsoused extracts from Beethoven’s balletDie Geschöpfe des Prometheus (TheCreatures of Prometheus) and Liszt’sPrometheus symphonic poem. Neitheris close to being its composer’s bestmusic, but the quality of playing washigh, as always under Jurowski.

Including a substantial new workby German composer MatthiasPintscher pushed the boundaries. HisMar’eh, a joint commission by theLPO, which gave the premiere inLucerne a couple of weeks earlier, isa strangely persuasive violin concertoof wispy, insubstantial sounds thatlinger at the border of inaudibility.Julia Fischer was the exemplarysoloist and the audience sat paralysedinto silence in order to hear.

On Sunday, the PhilharmoniaOrchestra followed with its ownadventurous offering. Brahms’s ViolinConcerto is admittedly not a rarity,even played with the exhaustingathleticism that it was here byViktoria Mullova. But Sibelius’s epicKullervo still is and Esa-PekkaSalonen, the Philharmonia’s principalconductor, took the players on anexhilarating ride through its bloodyand tragic myth. Monica Groop wasthe grave mezzo, Jukka Rasilainenthe searing baritone, and the malevoices of Orphei Drängar came fromSweden to add their tight-knitsinging to the scorching playing fromthe orchestra. This was as ambitiousa start to the season as any for fiveyears or more.

www.southbankcentre.co.uk

Lit by a dying crimson sun, thelandscape has imploded and is beingsucked into a vast black chasm. Fromthe upper left lightning jags into abare peak, smashing away enormouslumps of rock, while opposite anentire mountainside, on which a cityonce stood, surges up like an oceanwave, then tips and topples into thevoid, spilling the buildings into the airas it falls. In the foreground, clingingpathetically to the quaking earth,remnants of humanity are swept totheir deaths, screaming in terror.

This is the title-work andcentrepiece of Apocalypse, TateBritain’s epic show about the painterand printmaker John Martin, themost comprehensive survey seensince the artist’s death in 1854.Formally titled “The Great Day ofHis Wrath”, the canvas stands as oneof the greatest hit pictures in Britishart history: its size, cosmic violence,garish effects and vision of humanpuniness struck millions ofVictorians with awe when it wasseen, with its companion pieces “TheLast Judgement” and “The Plains ofHeaven”, not only on first exhibitionbut during 20 years of touringtheatres, assembly halls and circustents in Britain, the US andAustralia. No original British oilpaintings had ever been viewed soeagerly and by so many; and nonehad made such a sensational effect.

The triptych was the culminationof Martin’s life-long preoccupationwith natural, historical and,ultimately, divine destructive force.This interest was notably shared bytwo of his brothers: William, a self-taught theorist who deniedNewtonian materialism with his ownmillenarian cosmology; and Jonathan,who was even more extreme.Prompted by visions, Jonathan setfire to York Minster in an attempt tooverthrow the Anglican church (“youserpents and vipers of hell, you winebibbers and beef eaters, whose eyesstand out with fatness”) and, withluck, the world itself. He wascommitted to Bedlam in 1829. Thebrothers were close and, touchingly,John never repudiated Jonathan, butsupported and regularly visited himin the madhouse.

An artist driven to destructionJohn Martin’s lifelong preoccupation with natural calamity and divine wrath is captured in an epic show

Profits of doom:works such as‘The Destructionof Sodom andGomorrah’ (1852)and ‘Belshazzar’sFeast’ (1820) wereimmensely popularduring JohnMartin’s lifetime

CLASSICAL MUSICLPO/PhilharmoniaRoyal Festival Hall, London★★★★☆Richard Fairman

The Martins were of humbleNorthumbrian origin, and John’sapprenticeship in ceramic and glasspainting gave little hint of his adultcapabilities and ambitions. Afterlosing his job with William Collins’sglass works in the Strand, he turnedwith astonishing confidence to large-scale subject painting in oils, andsoon attracted attention at the RoyalAcademy by showing dramaticlandscapes on mythical or literarythemes. These were inspired by 18th-century devotees of the sublime suchas Salvator Rosa and Philip James deLoutherbourg, but from the startMartin was determined to outstriphis models and was soon producingBiblical catastrophes of a kind thatalso, from time to time, attracted his

near contemporary and friend J.M.W.Turner. “The Fall of Babylon” (1819)and “Belshazzar’s Feast” (1820) wereamong Martin’s biggest earlysuccesses, and they are pictures thatdo not compromise. The natural andarchitectural backgrounds are on adizzying scale; the colours, or so theprofessional critics thought at thetime, are garish and unnatural – towhich Martin’s answer was: so muchthe better. The public loved them,giving rise to charges of vulgaritythat put Martin at odds with the artestablishment, especially at the RoyalAcademy where, for a significantperiod, he did not exhibit.

Martin’s craftwork background,oddball family, and nonconformistpreoccupation with the millenarianend-time and divine retribution, makeit tempting to imagine him as aslightly bonkers outsider-artist,similar to that other RA refusenik,William Blake. But while Blakeachieved scant renown, Martin madereal money and became a celebrity.He lived in a fine house, wasdrawing master to Princess Charlotte,then heir to the throne, and a closefriend of her husband Leopold, thefuture king of Belgium. Martin threwfamous parties attended by a widespectrum of London’s fashionablesociety and intellectual elite, anddrew an excellent income from hispaintings and his busy print shop.

The first three rooms of TateBritain’s exhibition trace Martin’spath as he progressed towards evermore apocalyptic subjects. But then,in room four, you are confronted withsomething in a completely differentregister: surveys and engineeringdrawings that Martin made toimprove London’s sewage andtransport systems. At first sight theypresent a wholly unexpected side tothe man but, in effect, these appealsfor civic reform bear acomplementary relationship to thepanoply of imagined disasters. IfLondon, with its slums, its cholera,its choked roads and unsanitary river,was a modern Babylon or Gomorrah,ever poised on the brink of perdition,it might yet be saved by moderntechnology and rational improvement.Martin almost bankrupted himselfpromoting such schemes: a Thamesembankment enclosing a great sewer,an underground railway, glassed-inshopping malls, an orbital transportsystem and other schemes. Theycame to nothing in his lifetime, butall were eventually realised in oneform or another.

This is a rich, informative andoccasionally hair-raising show. Thebig canvases, and the special son etlumière presentation for the “LastJudgement” triptych, are powerfulexperiences, but there are quieterpleasures too. Some of the landscapewatercolours are delightful and theprints are among the most brilliantengravings ever produced in England.

Posterity was cruel to Martin. Hispopular successes meant the artisticelite did not take him seriously and,as the gloss wore off them, his workssuffered great indignities, changinghands for a pittance, trundled aroundthe world as a raree show and, in thecase of “The Destruction of Pompeii”and “Herculaneum”, grotesquelydamaged when the Tate’s basementwas flooded in 1928 after torrential,almost Martinesque, rains burst thevery Thames embankment that theartist had dreamed of creating.Thanks to the skill of conservatorSarah Maisey, the painting has beenbrought back from the dead. IfMartin’s reputation has shown itsown Lazarus-like tendencies in recentyears, it is good to see him now,fully out of the tomb and struttinghis stuff once more.

Continues until January 15,www.tate.org.uk/britain

ARTSONLINETo see a slideshowof works from TateBritain’s ‘JohnMartin: Apocalypse’exhibition go towww.ft.com/artsextra

Timely:‘J’aurais vouluêtre égyptien’(I Wish I WasEgyptian) isadapted fromAlaa AlAswany'snovel‘Chicago’

Pascal Victor

United States of alienationTHEATREJ’aurais voulu êtreégyptienThéâtre NanterreAmandiers, Paris★★★☆☆Clare Shine

This human filter is at timespoignant and funny, capturing thevulnerability behind the facades. Yetoverall the stilted dialogues neverquite manage to breathe dramaticlife into the complex business ofexisting in a foreign society thatmistrusts you.

Mounir Margoum’s Nagui providesa powerful linchpin for the cast,exhibiting a pleasing complicity withthe audience. Farida Rahouadj’sdignified Maroua, Marie Denarnaud’ssensual Wendy and Sylvie Milhaud’snervy Chris also stand out in thistaut cast.

www.nanterre-amandiers.com

Timing is everything. When Jean-Louis Martinelli started adaptingAlaa Al Aswany’s 2006 novel Chicagofor the stage, the Egyptian uprisingand Arab spring were still a year off.To premiere just after the 10thanniversary of 9/11 and with eyesswivelling to US-Middle East relationsat the UN General Assembly makesit even more topical. Changing thetitle to J’aurais voulu être égyptien(I Wish I Was Egyptian) now seemslike nifty foresight.

Al Aswany, a writer engaged in thereformist camp, best known for TheYacoubian Building, rolls out apanoramic array of characters aroundNagui, a fresh-faced scholarshipstudent new to the US. His chunkycanvas straddles political andsecurity wheeling and dealing, thequicksands of sexual frustration andthe nebulous territories of identity,repression and voluntary exile.

Turning a long novel’s cosymeanderings into compelling theatrepresents many challenges. Martinelliuses familiar devices to explore themechanics of alienation, with his fullcast on stage for nearly three hours.Scripts are studied and costumeschanged as cameo scenes play outcentre stage, interwoven with stage-side song and third-person narration.

The intensity is increased by harsh-lit decor, sinister overheadmicrophones and seating areas devoidof intimacy. Enveloping blacknesshints at a no-man’s-land until thelights of iconic skyscrapers emerge.

Despite its inherent interest andsome strong performances, thisproduction struggles to sustain paceand emotional resonance. From thestart, there’s a didactic whiff to theinterplay of characters in this micro-community held together only bytenuous strings of nationality. Partsof the adaptation become stuck inset-piece contrasts of gender, politicaland religious views, relayed viapersonal dialogues or psychoanalysis.

Asia Triennial Manchester 2011

Happening

What: Festival of Asianvisual culture comes to thenorth of England

When: Saturday –November 27

Where: Venues in andaround Manchester, UK

Details: Manchesterbasedagency Shisha, established topromote contemporary SouthAsian arts – and the peoplebehind the city’s first AsiaTriennial in 2008 – havecreated a wideranging andinventive eightweekprogramme across 17 venues.Artists from 13 countriesexplore migration throughexhibitions, film screeningsand events. These include abig display of work of

Lahorebased artist RashidRana at Cornerhouse. At thesame venue, the AsiaTriennial Film Programme willinclude Herb Hsu LiWen’sdebut fiction feature HotelBlack Cat and a retrospectiveof Philippine director

Brilliante Mendoza. Severalcommissions that are on asmaller scale demonstrategreat promise: AdeelaSuleman’s waterworksculpture “Drained” will beexhibited at ManchesterCathedral, while Tasawar

Bashir and Brian Duffy havecreated “Silsila”, a “Sufiinspired cosmic journey insound”, installed at JodrellBank, home of the big Lovelltelescope.

asiatriennialmanchester.com

Fromleft: WenZhenLing in‘HotelBlackCat’;KangChunHyuk’s‘RatAmongstClover’

VISUAL ARTSJohn Martin: ApocalypseTate Britain, London

Robin Blake

SEPTEMBER 27 2011 Section:Features Time: 26/9/2011 - 18:21 User: murtaghj Page Name: ART EUR, Part,Page,Edition: EUR, 13, 1

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ACROSS1 A yacht wrecked in China (6)4 Concealed former pupils get-

ting pickled (8)9 Midday flight is restricted (6)

10 Pub in awkward place is thehigh point (8)

12 Fish experiences having headcut off (4)

13 Whistled to girls having view-ing aids (10)

15 A liking for prophesy about theParisian (12)

18 Consider ‘er intention in musi-cal arrangement (12)

21 Distress character reversingjalopy (10)

22 Father an art movement (4)24 Moral tale of a parrot holding

the stage (8)25 Opponents notice flag (6)26 With composure and cunning

embracing oriental girlfriend(8)

27 Advocate having wife in bed(6)

DOWN1 Cheat, seduce and disgrace

(8)2 Ploughman reserves an hour

for a novel (8)3 Flower carried by Savonarola

(4)5 Supply a need for game fel-

low, good during strike (6,3,3)6 Paul at once prepared fruit

(10)7 Holiday in secluded spot (6)8 Stylish, clean and young (6)

11 Psychic upset usual partner(12)

14 It shows when workingguide’s frivolous (5,5)

16 Laughter or a term embracingit (8)

17 Coarse filter surprisingly isn’trare (8)

19 Greek devours the classics (6)20 Leader of thugs, buried in

concrete, showing no emotion(6)

23 Foreign ruler much liked byaccountant (4)

CCrroosssswwoorrdd wwiinnnneerrss’’ nnaammeess wwiillll bbee ppuubblliisshheedd iinn WWeeeekkeenndd FFTT..

SSoolluuttiioonn ttoo SSaattuurrddaayy’’ss pprriizzee ppuuzzzzllee oonn SSaattuurrddaayy OOccttoobbeerr 88SSoolluuttiioonn ttoo yyeesstteerrddaayy’’ss pprriizzee ppuuzzzzllee oonn MMoonnddaayy OOccttoobbeerr 1100

JOTTER PAD

LEX ON THE WEBFor a Lex note on Berkshire Hathawaygo to www.ft.com/lexFor email, go to www.ft.com/nbe

THE LEX COLUMNTuesday September 27 2011

Gross financing needs until December 2014(€bn)

IrelandPortugal

GreeceSpain

Italy0

100

200

300

400

500

600

700

On the hook

Sources: JPMorgan; Capital Economics

Eurozone member guarantee commitments

Others

Netherlands

Germany

Spain

Italy

France

29% 22%

19%6%

13%11%

Facility managementEvery new disease sets off the huntfor the blockbuster remedy.Policymakers seem to think they areon the brink of discovering amiracle cure for the eurozonesovereign debt crisis, in the shape ofthe European financial stabilityfacility. The EFSF was created tofund countries shut out of themarkets. It can do more – includingrecapitalising Europe’s banks – butonly if it is restructured. However,policymakers need to be honest withtaxpayers about the risks involved.

As currently structured, the EFSFis less than meets the eye. It iscapitalised at €440bn to meet thefinancing needs of Ireland, Portugaland Spain. That heft is a bitillusory, however, since extraguarantees and cash buffers keep itslending limit nearer to €250bn. Thefacility is being revised to boost thiseffective lending capacity to €440bnand its guaranteed commitment to€780bn. Germany’s parliament is tovote on that expansion on Thursday.If MPs approve, it will give eurozonepolicymakers a potent weapon in thefight against crisis contagion.

There are things that the EFSFcan and cannot do, however. It canhelp to recapitalise the eurozone’sflailing banks – a more urgent task

than preparing to support Spain.But its scope would still be limited.Assuming it injected €7.5bn intoeach of the eurozone’s 20 weakestbanks, participated in the secondGreek bail-out to the tune of €65bn,and included the €49bn alreadycommitted to Ireland and Portugal,the EFSF would have only about€175bn of firepower remaining.

The EFSF has a triple-A creditrating, but only six of theeurozone’s 17 member states do,

representing 62 per cent of itsguarantees. If France lost itstriple-A status, that would fallbelow 50 per cent. Expanding theEFSF would also increase thecontingent liability – currentlyabout 8.5 per cent of output – ofeach contributor. That is the priceof tardiness and drift at the top ofthe eurozone, however. If the EFSFis to be the wonder drug ofeveryone’s imagination, it must begiven all the flexibility it needs.

European tobaccoWhatever the chief executives oftobacco companies are smoking, theyshould pass it round more freely.The FTSE Eurofirst 300 tobaccoindex is the best performer this year,returning 8.4 per cent. Moreover, it isone of only two indices in positiveterritory. The other is the healthcareequipment and services index, whichincludes the providers of stuff forlung cancer sufferers. So no classichedge there, then. But, beyond the 4per cent dividend yield, there is goodreason for the European tobaccosector’s allure: it is in reasonablehealth, even if purveyors of smokesand snuff seem too shy to admit it.

Take last week’s Imperial Tobaccotrading update, which ran to just 175words. It expects to report tobaccorevenues about 2 per cent higher,but “white stick equivalent” volumes(cigarette sales plus fine cut tobacco)about 2 per cent lower in the year toSeptember. Imperial, like BritishAmerican Tobacco and SwedishMatch, has imposed price increasesto offset declining volumes. Wheresmokers have been forced to tradedown as economies slow, the tobaccocompanies have countered withvalue brands. And although volumeshave been in gradual decline foryears in markets where anti-tobaccoregulation is strong, they remainhighly profitable.

Even so, Africa, the Asia-Pacificregion and eastern Europe – togetheraccounting for almost a third ofrevenue – are where Imperial’s growthprospects lie. The markets’ potentialis not yet reflected in its share price.Imperial trades on an undemandingforward earnings multiple of 11times, a near 20 per cent discount toBAT. The latter’s own rating appearsconservative given that more thanhalf of its revenue already comesfrom emerging markets, wheretrading is strong.

European tobacco companies havehad a good run but their CEOs arenot yet stubbing out their upsidechances. Fancy a cigarette?

Rio in MongoliaRio Tinto thought Ivanhoe wastrouble enough. The Canadian miner,in which Rio has patiently built adominant stake, accused it last weekof saying more than it should abouta Rio-run copper and gold complexin the South Gobi desert. Now thegovernment of Mongolia – 34 percent partner in Oyu Tolgoi, with therest held by Ivanhoe – seems to want

to redraft the investment agreementsigned less than two years ago. Ithas sent Ivanhoe a revised proposalaccelerating the time frame in whichthe state’s share is increased to half.

Rio, Ivanhoe and the hordes ofother mining groups marauding overthe steppe may want to see this as apiece of theatre. Mongolia hasparliamentary elections next June.The move could be designed toappease a cross-party group of 20lawmakers who have petitioned theprime minister to revise the accord.But the miners cannot be too sure.Politicians in this young republichave a habit of following through onbig gestures. In 2008, for example,after the Democratic party promiseda hand out of 1m tugrik to everycitizen, the Mongolian People’s party– dominant in the current coalition –hit back with 1.25m. Monthlycheques have begun to trickle in.

For Rio, this dispute could beserious. Since 2006 the world’s third-largest miner has indirectly fundedOyu Tolgoi by buying shares inIvanhoe, often when cash flow wastight. Scheduled to start producingin 2013, the asset is the obvioushighlight of a copper portfolio that

has produced about a fifth of netincome in recent years; other growthoptions in Arizona and Peru are atleast a decade away. The rationalefor preserving the agreement in itsoriginal form may look compellingenough: since October 2009, when itwas signed, no stock exchange in theworld has got anywhere near UlanBator’s 145 per cent return, whileforeign direct investment has soared.But since when has logic won votes?

Boeing’s 787Aerophobes hopefully will find it lessunbelievable that plastic aircraft – asopposed to metal ones – can possiblystay airborne. Investors, however,should not be buoyed by news ofBoeing’s first 787 delivery this week,complete with bidets and see-morewindows. After a long wait, whatmatters to shareholders are profits.

The trouble is that calculating theprofitability of massive projects suchas building the Dreamliner isextraordinarily difficult. Hugedevelopment and production costsare incurred up front yet need to bematched against future orders andreceipts, both of which are a moving

feast. Operating costs also vary overthe life of the project – as do sellingprices. To get around these problems,companies such as Boeing resort towhat is known in the trade asprogramme accounting.

How does this work? First, Boeingdecides on a nice and large initial“block” size – say 1,000 aircraft.(There are currently more than 800orders on the books.) Revenues arethen estimated for this block, as isthe total cost of the programme upuntil the end of the block. Thedifference becomes the impliedmargin for each jet sold. There are,of course, assumptions aplenty, oneverything from production rates andpricing to operating costs.

Estimates by Bernstein Researchsuggest the 787 will struggle to havea positive margin over the first 1,000aircraft. This assumes an averageselling price of $120m per aircraft, aswell as unit cost declines as Boeingbecomes more efficient at makingthe things. It also assumes productionof 10 jets per month by the end of2014. That said, although the initialblock may result in an accountingloss, unit margins by the 1,000thaircraft may actually approach 20 per

Nike and AdidasUsain Bolt v Tyson Gay. DayronRobles v Liu Xiang. Sebastian Coe vSteve Ovett – like many of the greatsporting rivals who endorse theirproducts, Nike and Adidas tend tosnap at each other’s heels. Over adecade, it is almost a photo finish:Nike shares up by 290 per cent,Adidas by 270 per cent.

Not surprisingly, robustfirst-quarter earnings from Nike lastweek prompted an almostsynchronised uptick in Adidas stock.What impressed investors was thestrength of Nike’s sales growth. Nikebrand revenues were up 12 per centyear on year, once currencyfluctuations were eliminated, and itsfuture orders stand 13 per centhigher (for the September-Januaryperiod on a similar currency-neutralbasis). Almost all regions kicked in,with emerging markets leading theway. But North America also posteda surprisingly strong 15 per centrevenue increase. Pressure onmargins appears to be easing off, too.The one dull spot was westernEurope, where sales were flat,although that was partly due tocomparisons with World Cup-inflatedrevenues of a year ago. Futureorders are slightly ahead.

Many of these positive trendsshould benefit Adidas, too. It hasalready raised its 2011 sales forecasttwice this year – most recently inAugust, when it predicted a 10 percent currency-adjusted rise togetherwith stable gross margins. Investorsmay worry, however, that in thelong term the German company ismore exposed to trends in westernEurope, which accounts for 30 percent of revenues compared with23 per cent of Nike’s. Moreover, liketheir running shoes, shares in bothcompanies already come with a stiffprice tag. Nike trades at 19 timesprospective earnings, Adidas at 16times. Given the global economicheadwinds, investors should expectmore of a marathon than a sprint, atleast until after the next bend.

cent, Bernstein said – not far offthose for the 777. All NipponAirways may finally have taken holdof its new aircraft, but patience isstill required from investors.

Martin WolfBlog: the FT’s chiefeconomics commentatorasks what do banks’target returns on equitytell us about the sector?Share your views online

www.ft.com/wolfexchange

Is UK industry onthe defensive?Video: FT manufacturingeditor Peter Marsh looksat the significance ofBAE Systems – theworld’s secondbiggestmaker of militaryequipment – to Britain

www.ft.com/baedefence

Most read

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5

Putin to return as Russian president

Debt talks fail to agree solution

Gold slides as investors scramblefor cash

Borrowers urged to snap uptrackers now

Wolfgang Münchau: Zero hourfor the euro

TODAY ON FT.COM

SEPTEMBER 27 2011 Section:FrontBack Time: 26/9/2011 - 21:25 User: huckettm Page Name: 1BACK EUR, Part,Page,Edition: EUR, 14, 1

★ 15

Companies and sectors in this issue

CompaniesAT&T...........................................26

Adidas..........................................14

African Barrick Gold ................28

All Nippon Airways ................... 14

Allianz..........................................28

Alpha Bank.................................28

Apple............................................17

Aquarius Platinum....................28

Aviva............................................28

BDO International......................17

BNP Paribas .............................. 28

BP...................................................3

Bank Austria ................................4

Bank of America.......................28

Barclays......................................28

Berkshire Hathaway..................15

Best Buy......................................12

Blinkx...........................................28

Boeing..........................................14

British American Tobacco.......14

Britvic..........................................28

CME Group...........................27,28

CNPC.............................................6

Cemex..........................................12

Charles Schwab........................28

Chevron ....................................... 17

Citigroup.....................................28

Clorox Company.......................28

CocaCola...............................15,17

CocaCola Enterprises.............26

Commerzbank...........................28

Credit Suisse..............................18

Deloitte.........................................17

Deutsche Bank..........................28

DreamWorks Animation..........28

ENI................................................17

Eramet.........................................28

Ernst & Young............................17

Erste Bank....................................4

Essilor...........................................12

Expedia........................................28

F&C Asset Management .......28

Facebook.....................................17

Ferrexpo......................................28

Fresnillo.......................................28

General Electric ......................... 16

Goldman Sachs.........................28

Greylock Partners......................17

Groupon.......................................17

Gulfsands Petroleum..................6

Heritage Oil................................28

Huntington Bancshares...........28

Imperial Tobacco.......................14

Insight Venture Partners ......... 17

IntercontinentalExchange........28

Ivanhoe........................................14

JPMorgan ................................... 28

KPMG...........................................17

McGrawHill...................................1

Merrill Lynch .............................. 16

Missoni ..........................................8

Mizuho Financial Group............. 1

Monsanto.................................... 16

Morgan Crucible .......................28

Morgan Stanley....................16,28

Nasdaq OMX.............................28

Nautical Petroleum...................28

Nestlé..........................................26

Netflix..........................................28

New York Stock Exch..............28

Nike..............................................14

ONGC.............................................6

OTP................................................4

PepsiCo...................................16,17

Piraeus........................................28

Premier Foods...........................26

Prudential ...................................28

PwC.............................................. 17

Raiffeisen Bank Int’l ...................4

Randgold Resources................28

Rio Tinto......................................14

Royal Dutch Shell.......................6

Salvatore Ferragamo SpA.........8

Samsung Electronics................17

Société Générale.......................28

Stratex International................28

Swedish Match.......................... 14

TD Ameritrade...........................28

Tesco...........................................28

Total...............................................6

Tumblr..........................................17

Twitter..........................................17

UBS.............................................. 18

UniCredit ..................................... 18

Versace ......................................... 8

Walt Disney................................26

Weir Group.................................28

Zions Bancorp...........................28

Zynga ........................................... 17

SectorsAerospace...................................14

Beverages....................................17

Food & Drug.............................. 14

Gen Financial.........................14,17

Leisure Goods............................14

Mining..........................................14

Mobile & Telecoms...................17

Oil & Gas...................................3,6

Travel & Leisure..........................8

China a better place for businessthan US, claims CocaCola chiefBy Alan Rappeport in New York

Coca-Cola now sees the US as aless friendly business environ-ment than China, its chief exec-utive has revealed, citing politi-cal gridlock and an antiquatedtax structure as reasons itshome market has become lesscompetitive.

“It’s like a well managed com-pany, China,” Muhtar Kent,Coke’s chief executive, told theFinancial Times. “You have aone-stop shop in terms of theChinese foreign investmentagency and local governmentsare fighting for investment witheach other.”

Mr Kent also pointed to Brazilas an example of an emergingeconomy that is making itselfattractive to investment in

ways that the US once did.“They’re learning very fast,these countries,” he said. “Inthe west, we’re forgettingwhat really worked 20 yearsago.”

Mr Kent argued that US statesdid not compete enough witheach other to attract businesseswhile Chinese provinces wereclamouring to draw investmentfrom international companies.

Meanwhile, he said China’sbudget discipline and rapid eco-nomic growth made it anappealing place for businesses.

China now accounts for7 per cent of Coke’s global salesvolume and in the first half ofthis year Coke sold more than1bn cases of its products inChina, twice the rate of fiveyears ago.

Although Coke does notreport its profits by country,China represents about 6 percent of its annual operatingprofits, according to analysts atBernstein Research.

The US, meanwhile, accountsfor 41 per cent of annual reve-nue and 19 per cent of its oper-ating income.

Mr Kent’s remarks came amonth after Coke announceda $4bn investment in Chinaover the next three years, whileon Monday it said it wouldinvest $3bn in Russia in thenext five years.

Coke continues to spend athome, however, with a $1.3bninvestment in capital assets inNorth America this year.

Investors sweet on Coke, Page 17

COMPANIES & MARKETSFINANCIAL TIMES

© THE FINANCIAL TIMES LIMITED 2011 Week 39

News Briefing

Source: Thomson Reuters Datastream

Australian dollarAgainst the US dollar (US$ per A$)

0.95

1.00

1.05

1.10Dec 1 2010

0.9571

Sep 26 20110.9672

Australian dollar at its lowestsince December, Page 28

Tumblr’s takingMultimedia blogging sitesecures $85m in newfunding. Page 17

UBS restructuringInterim chief urged totake much sharper axe toinvestment bank. Page 18

F1 bribery caseGerman banker to standtrial on charges he took$44m in bribes.www.ft.com/companies

Samsung accuses AppleKorean outfit allegesiPhonemaker has infringedon its patents. Page 17

Launch for Sir SteliosEasyJet founder plans newairline called Fastjet. Page 18

Eni restarts in LibyaItalian group resumes oilproduction after civil warbrought operations to anear standstill. Page 17

Chill on the high streetUK retailers fear Christmaswill not lift the gloom.www.ft.com/ukcompanies

Inside BusinessSergio Ermotti – a Swissnational, not an Italian ashis name suggests – hasthe edge at UBS. Page 18

EuropeAfter incurring sharp recentlosses, Austrian banksmake big gains. Page 28

Who will step in?Investors wrestle withprospect of Eurozonebank rescue plan. Page 26

Rice price pressuresThe vital commodity thatfeeds 3bn people exceeds$600 a tonne. Page 27

Nestlé goes lowFood company takes loanon Europe’s cheapestterms since 2007. Page 26

Trading PostWhat is driving downthe performance of giltsrelative to Bunds? Page 27

Markets & Investing

Companies

Tuesday September 27 2011

Andrew Sentance Why more quantitative easing is a mistake Page 26

By Jack Farchy in London

Traders are reeling after a waveof selling by investors fromChinese speculators to westernhedge funds triggered some ofthe most violent price swings inmetals in memory.

Industrial metals such as cop-per, used in electrical wiring,zinc, for galvanising steel, orplatinum, a component of cata-lytic converters in cars, haduntil last week remained rela-tively unscathed by the sell-offthat swept other markets.

But growing fears about anescalation of the eurozone debtcrisis have crushed hopes fornew records in metals such ascopper and silver. “Now peopleare assuming outright contrac-tion in European and probablyUS demand,” said Kamal Naqvi,head of commodity investorsales at Credit Suisse.

The concerns have been exac-erbated by scattered reports ofweakening demand.

The sudden reversal of senti-ment has caused some of thesharpest falls on record. Silver,nicknamed by traders “thedevil’s metal”, has plummetedas much as 34 per cent in threedays to a low on Monday – itssharpest drop in three decades.By Monday afternoon, it hadrebounded 13.7 per cent. Copperhas dropped 13.2 per cent totrade below $7,000 a tonne forthe first time in more than a

year. “I’ve been involved withthese markets for quite sometime. I have not seen the sever-ity of these overnight movesbefore,” said Gavin Prentice,managing director at MarexSpectron, a leading commoditiesbrokerage. “You arrive at 7amand it’s already 5 per cent down.It’s quite frightening.”

The sharp drops in pricesbode badly for mining compa-nies that have seen profitsalready come under pressure

from higher costs and a trend ofresource nationalism in com-modity-rich countries.

Even gold, which investorshave turned to as a haven thatwould protect them in times ofmarket turmoil, has tumbled.The yellow metal dropped to alow of $1,534.49 a troy ounceearly on Monday, down 15per cent in four days, beforerebounding to stabilise some-what above $1,600.

Bankers said that, while many

hedge funds had turned bearishon industrial metals in recentweeks, some were likely to havebeen hit by the unexpectedlysharp drop in gold. Prominentgold bulls such as hedge fundgroup Paulson & Co have seenthe value of their gold holdingsdrop 16 per cent in three weeks.

Traders and bankers said alarge part of the selling hadbeen driven by Chinese inves-tors, who had bet on higherprices for metals such as copper

and silver based on the strengthof their domestic economies.

“Have Chinese investors beencaught long and wrong on a lotof these markets? Absolutely,”said Mr Prentice of Marex Spec-tron. “Look at the ones theyplay: copper, silver, zinc, nickel.They’ve lost an awful lot.”

Haven succumbs to selloff, andcommodities report, Page 27See The Short Viewwww.ft.com/commodities

Mass selloff hammers metalsReversal of sentimentsparks sharp price fallsEurozone woes andweaker demand blamed

Gold

Source: Reuters

Price ($ per ounce)

1500

1600

1700

1800

SilverPrice ($ per ounce)

25

30

35

40

Sep 19 20111818.59

Sep 2011

Sep 2011

Sep 261589.29

Sep 2628.39

Sep 19 201140.59

Photo: Bloomberg

By Dan McCrum in New York

Berkshire Hathaway, the candy-to-cargo-train conglomerate con-trolled by Warren Buffett, willbuy back its own shares for thefirst time, as the famed stockinvestor declared the marketvalue of his own company to beextremely cheap.

Berkshire’s board said its cashhoard could be used for sharebuy-backs, provided the grouppaid no more than a 10 per centpremium to current book valueand its consolidated cash hold-ings did not fall below $20bn.

“In the opinion of our boardand management, the underly-ing businesses of Berkshire areworth considerably more . . .though any such estimate isnecessarily imprecise,” Berk-shire said in a statement.

Investors interpreted themove by Mr Buffett, who hasattacked financial gimmickryand the fashions of Wall Street,as a sign of his confidencethat there will not be anotherdeep recession or stock marketrout.

“If Buffett thought there waseven a meaningful chance of

that happening, he would notbuy back any stock. He wouldhang on to the cash and wait toput it to work,” said WhitneyTilson of T2 Partners, a hedgefund whose largest holding isBerkshire shares.

“In 2008 he put $50bn to work –he would love to have thatopportunity again.”

Mr Tilson estimates that Berk-shire had $77bn in cash andequivalents at the end of thesecond quarter, giving Mr Buf-fett $57bn of dry powder.

Shares in Berkshire had fallenby a fifth this year before trad-

ing began on Monday, givingthe company a market capitali-sation of $165bn. In late trade inNew York, the stock was up 6.9per cent at $107,260 per A share.At the end of the second quar-ter, its book value was $98,716per A share and $68.71 per Bshare.

While Mr Buffett saw sharerepurchases as a positive signalwhen assessing companies inthe 1970s, he later dismissedtheir growing popularity. “Thecontinuing shareholder is penal-ised by repurchases aboveintrinsic value,” he wrote in

Berkshire’s 1999 annual report.“Buying dollar bills for $1.10 isnot good business for those whostick around.”

Mr Buffett had previously con-sidered buying back stock at theheight of the dotcom boom,when Berkshire’s A shares fellbelow $45,000.

Shareholders interested inselling were directed to call atrader at the company to makean offer, but a rapid rebound inits valuation meant no repur-chases took place.

Lex, Page 14

Buffett’s Berkshire buyback seen as sign of optimism

Gold bugs are bloodied andscratching their heads as themetal has become a victim andnot a beneficiary of excessvolatility across markets.

During times of turmoil goldis usually seen as a haven, butit appears its long bull run hasfinally triggered a stampede tocash in gains on a commoditythat has a value that is inmany ways more psychologicalthan industrial.

Gold’s low of $1,534 an ounceon Monday represents thebiggest four-day drop since1983, and the metal has fallen20 per cent from its recordhigh of $1,920 an ounce thismonth.

The trigger has been theFederal Reserve launchingOperation Twist, a policyapproach that does not expandthe central bank’s balancesheet, unlike its prior efforts ofquantitative easing.Underpinning much of the rallyin gold in recent years hasbeen the concern that the USdollar and other papercurrencies were being debasedand that an inflation surgebeckoned.

That view is being challengedand as evidence mounts thatthe global economy is slowing,one only has to look at slidingoil prices and US inflationexpectations since the twistwas announced, to see how theFed has altered the picture forcertain asset classes such asgold and silver.

From a low around $1,300 inJanuary, gold was vulnerableto bulls cashing in some oftheir gains at some stage andindeed may reflect someinvestors raising moneyto cover losses in othermarkets.

But the vehement sell-off hassurprised many people and thequestion for gold bugs iswhether this representsanother opportunity to buygold at a cheaper price, or isthe start of a much biggerdecline for the metal.

Beyond the current turmoil,a stronger dollar and lowerinflation leaves only the threatof a eurozone collapse asa source of comfort forgold bugs.

James Mackintosh is away

www.ft.com/shortview

The Short ViewMichael Mackenzie

SEPTEMBER 27 2011 Section:2Front Time: 26/9/2011 - 20:22 User: salmona Page Name: 2FRONT EUR, Part,Page,Edition: EUR, 15, 1


Tax wars

A simple rule meant to cut paperworkfor US companies has grown into oneof the biggest multinational taxbreaks around, costing the US andother governments billions of dollarsin lost taxes each year.

It thrives thanks to determinedbusiness support, including a cam-paign two years ago that forced theObama administration to retreat fromaltering it, and tax professionalsworldwide who exploit its benefits.

The rule is dubbed “check-the-box”.It allows US companies to shift profitsfrom operations in high-tax countriessimply by marking an Internal Reve-nue Service form that transforms sub-sidiaries into what the agency calls a“disregarded entity”. Others havelabelled them “tax nothings”.

Check-the-box allows companies toavoid the normal 35 per cent US cor-porate tax on certain types of income.The Treasury Department estimatesthat annual revenue losses fromcheck-the-box have hit almost $10bn.Other countries are also said to losebillions as income is shifted fromother high-tax jurisdictions to placeswith low or no taxes, although thereis no official estimate.

Check-the-box is “an open invitationto arbitrage”, said David Rosenbloom,director of the international tax pro-gramme at New York University’sSchool of Law.

The impact of check-the-box goesbeyond the drain on government cof-fers. The rule, along with other taxprovisions, has helped fuel explosivegrowth in foreign investment by UScorporations. Since 2004, the earningsthat US companies keep overseashave doubled to about $1,800bn,US Department of Commerce datashow.

Now, these “unrepatriated” earn-ings, which are not subject to taxwhile held abroad, figure prominentlyin Washington’s debate about corpo-rate taxes. While President Obamahas proposed clamping down on loop-holes, business groups and allies inCongress are rallying for a tax holidayon overseas profits and a sharp reduc-tion in the corporate tax rate.

Their argument is that the high taxrate in the US creates a disincentiveto invest in jobs at home. US compa-nies with the most profits accumu-lated abroad tend to invest heavily inresearch and development that canspur job creation.

Check-the-box is just one of manyforms of “tax arbitrage” – the art ofexploiting differences in countries’ taxsystems. It can reduce taxes by itselfor feature in more complex transac-tions. As the Financial Times and Pro-Publica reported on Monday, the IRSin recent years has clamped down onwhat it views as abusive arbitragedeals involving foreign tax credits.

But check-the-box lives on. It is notamong loopholes targeted by MrObama’s new plan. Its seeminglyuntouchable status – the governmenthas twice tried to kill it and balked –provides a case study in how a billion-dollar tax break was born by mistake,then protected by the power of thebusiness community.

The original idea was innocentenough – to cut red tape by making iteasier for companies to decide how tocategorise their subsidiaries.

In the mid-1990s, US companieswere creating a growing number ofdomestic entities. The new rule saidthat, by simply checking a box on IRSForm 8832, businesses could declarethem as corporations or partnerships.

But within days of its announce-ment in 1996, tax lawyers were sayingthat the Treasury Department hadoverlooked the international ramifica-tions. Inadvertently, the governmenthad provided a way for companies tomove profits from subsidiaries inhigh-tax countries to Luxembourg,the Caymans or other jurisdictionswith lower or no taxes on certainkinds of income. Often, this is doneby making royalty or interest pay-ments between operations in differentcountries.

For decades, the IRS has had anti-abuse rules to make sure such pay-ments could be subject to taxes. How-ever, these rules generally don’t applyto payments made within a corpora-tion. Check-the-box made it simple fora company to designate a subsidiaryas a branch, with no US tax conse-quences for the income unless it isrepatriated.

Joseph Guttentag, international taxcounsel at the US Treasury whencheck-the-box was introduced, saidthe government may not haveunderstood, but tax lawyers quickly“saw all the avoidance goodies theycould do”.

Countries such as the UK and Ger-many quickly raised concerns that therule was stripping earnings from theirtax bases. By early 1998, the US Treas-ury said check-the-box was being usedto “circumvent” anti-abuse rules. Itproposed new regulations – and corpo-rate America erupted.

General Electric, PepsiCo, MorganStanley, Merrill Lynch, Monsantoand other major companies urgedCongress to resist the change.The US, they said, was tryingto be “the tax policeman for theworld”. Allies in Congress dug in,and Treasury quickly rescinded theproposal.

By March 2000, Treasury reportedthe existence of nearly 8,000 “disre-garded entities’’. A paper by HeatherM. Field, an associate professor at theUniversity of California’s HastingsCollege of the Law, found that tens ofthousands more were created between2001 and 2006.

Check-the-box became an essentialtool in tax planning, driving down theaverage effective corporate tax rate onthe foreign income of US businessesby 1 per cent to 2 per cent between1996 and 2004, according to a private,unpublished paper by Treasury econo-mist Harry Grubert.

The Netherlands became the pre-ferred location for US companiesusing check-the-box, according to taxlawyers and government data,although Luxembourg also attractsconsiderable activity.

The Dutch tax system offers afavourable legal and regulatory envi-ronment, including special tax treat-ment for financial services and forlicensing and royalty payments. As aresult, multinationals channel tril-lions of dollars a year through theNetherlands.

A report by the Dutch Central Bankfound that the US corporate share offunds flowing in and out of the coun-try via special Dutch entities

increased sixfold between 2005 and2009. US Commerce data show that USbusinesses kept $118bn of income inDutch holding companies between2006 and 2009.

In 2004, with overseas earnings pil-ing up, Congress approved a tempo-rary tax holiday that allowed Ameri-can companies to bring home profitstaxed at a rate of 5.25 per cent. Thelargest source of repatriated funds,about $90bn, came from the Nether-lands, according to a 2008 IRS study.

Check-the-box continued unchal-lenged until 2009, when Mr Obamatook office. In his first budget pro-posal, he made closing tax loopholes atop revenue-raising goal. And in theinternational area, check-the-box washis top target, the biggest revenueraiser in a list of 11 reforms.

Again, corporate opposition wasswift. Philip D. Morrison, a tax lawyerat Deloitte Tax, wrote in a prominenttax journal that the Obama proposalon check-the-box was “ridiculous”,and faulted the administration foroverheated rhetoric and a “deep cyni-cism”. Mr Morrison said the businesscommunity had already fought – andwon – this battle in 1998 with theargument that the US would benefitwhen the earnings were eventuallyrepatriated.

Some of the nation’s most influen-tial business groups, including theBusiness Roundtable, National Associ-ation of Manufacturers, National For-eign Trade Council and Chamber ofCommerce, quickly criticised theObama proposals in May 2009 as partof a pro-jobs campaign.

In Congress, tax committee mem-bers lined up alongside business lead-ers, with representative Dave Camp ofMichigan, the top Republican on theHouse Ways and Means Committeeand now its chairman, saying the pro-posals would put US corporations onthe auction block.

“Ironically, what the president pro-poses will make it more likely thatAmerican companies will be boughtby their foreign competitors,” MrCamp asserted.

The Obama administration quicklyretreated.

“They knew the business commu-nity was going to push back. Whatthey were really surprised bywas how vehemently the businesscommunity reacted to it,’’ said Cather-ine Schultz, vice-president of tax pol-icy for the National Foreign TradeCouncil.

In early 2010, Tim Geithner, theTreasury secretary, informed the Sen-ate’s tax-writing committee that theadministration was dropping itsattempt to broadly reform check-the-box. Instead, the Treasury wouldfocus on combating misuse of the ruleas part of other tax-avoidance tech-niques, including inappropriate for-eign tax credits, he said.

“Our goal in these proposals is tolimit the role taxes play in businessinvestment decisions by reducingimplicit incentives to move jobsand investment overseas,” MrGeithner testified.

While announcing his deficit-cuttingplan last week, Mr Obama faulted thecorporate tax system as “riddled withspecial-interest loopholes” and a highrate that hurts “our competitivenessin the world economy.”

He proposed more than a dozenbusiness tax reforms, including end-ing breaks for fossil-fuel developmentand tightening accounting measuresinvolving foreign income. AlthoughMr Obama did not mention check-the-box, its business supporters havedefended it on Capitol Hill.

On the same day that Mr Obamaaddressed Congress, an executivefrom Cargill, the world’s largesttrader of agricultural commodities,outlined possible reforms to the taxcode, but not to check-the-box.

Repealing check-the-box, said ScottM. Naatjes, Cargill’s vice-presidentand general tax counsel, would causeUS companies to pay more taxesabroad and make them less competi-tive. Cargill has 60 per cent of itsoperations outside the US.

The Senate panel also heard testi-mony from a law professor suggestingthat American companies were not sodisadvantaged.

Reuven Avi-Yonah, head of theinternational tax programme at theUniversity of Michigan Law School,testified that large European coun-tries had stricter rules when it cameto taxing profits made outside theircountry. Japan and Germany hadrecently made it harder for corpora-tions there to avoid taxes or shiftincome to lower-taxed jurisdictions,he said.

In an earlier interview, ProfessorAvi-Yonah said it would take a com-prehensive approach by Washingtonto curb the ability of corporations tofind new loopholes.

“It’s a problem to only close specificloopholes instead of addressing theissue in a general way,’’ he said.“Companies simply find new ways toreplace the approaches shut down byauthorities.’’

Meanwhile, check-the-box deals “aregoing like crazy,” according to oneprominent tax lawyer who helpsstructure such transactions. Headded: “I can design these a thousanddifferent ways.”

‘Our goalin theseproposals isto limit therole taxesplay inbusinessinvestmentdecisionsby reducingimplicitincentivesto movejobs andinvestmentoverseas’

Tim Geithnerin 2010

In a sign of growing anxietyabout tax competition thatcosts governments billionsof dollars a year, interna-tional economic policymak-ers are exploring the needfor a global crackdown ontax loopholes.

Experts at the Organisa-tion for Economic Co-opera-tion and Development areexamining tactics that com-panies employ to exploit dif-fering tax treatmentsbetween countries. Andthey are assessing pastefforts to rein in tax arbi-trage.

Angel Gurría, the OECDsecretary-general, recentlyurged the world’s biggesteconomies to consider how“to limit the scope for gam-

ing the system with multi-ple deductions, the creationof untaxed income andother unintended conse-quences of international taxarbitrage”.

The OECD is worriedabout the impact of taxarbitrage on competition,transparency and fairness,as well as lost revenues.This year Jeffrey Owens,the director of the OECD’sCentre for Tax Policy andAdministration, called forco-operation in dealing withthe “the most costly anddestabilising instances ofinternational tax arbitrage’’which he said can lead to“lost government revenues,wasted resources, increasesin borrowing to finance thearbitrage and increasedcomplexity.’’

Past efforts to crack downon arbitrage have been con-troversial, with big compa-nies accusing governmentsof trying to act as “globaltax policemen”.

In 2001, the business-friendly Bush administra-tion criticised an OECD ini-

tiative to address what ittermed “harmful tax prac-tices,’’ saying it interferedwith the right of countriesto structure their own taxrules.

In December 2008, afterthe financial crisis dawned,the US Internal RevenueService signalled a shift inattitude. IRS CommissionerDouglas H. Shulman, notedin speeches over the follow-ing year that a “dizzying

global environment” in taxarbitrage was challengingregulators. One of thespeeches came at a meetingof the OECD, whose 34member states includeEurope’s strongest econo-mies, the US, Japan andSouth Korea.

“All countries with realeconomies and real tax sys-tems have a shared interestin reducing the kind of arbi-trage that makes income

disappear from the tax sys-tems where the economicactivity is taking place,” MrShulman told an audienceat George Washington Uni-versity in 2009.

The term “tax arbitrage”encompasses a wide rangeof complex practices compa-nies employ to achieve taxcredits or savings, often byshifting income among sub-sidiaries in different coun-tries.

Their use has mush-roomed in the increasinglyglobalised economy,although it dimmed some-what in the wake of the2007-08 global financial cri-sis, which hit internationalcapital flows.

Still, an appetite foraggressive tax planningremains. Earlier this year,the UK Treasury ann-ounced laws to close down“an aggressive tax avoid-ance scheme’’ of “contrivedcircular transactions’’ by adozen large businesses uni-dentified by the govern-ment.

Hundreds of millions ofpounds of tax revenue wasat risk, the UK governmentsaid at the time. For confi-dentiality reasons, the UKdoes not disclose taxpayeridentities or offer detailsabout such cases.

The OECD last year high-lighted its fears about theability of banks to uselosses accumulated sincethe financial crisis – calcu-lated by the OECD to beworth $700bn – as a tool for

aggressive tax planning.Among the concerns is“loss trafficking’’– schemesin which losses are sold toother companies to reducetheir tax payment.

In a report published inAugust, the OECD alsowarned about aggressivetax planning concerning thecarry-forward of “vast’’ cor-porate losses than can be ashigh as 25 per cent of grossdomestic product in somecountries.

The OECD has also saidmultibillion-dollar dealsaimed at generating foreigntax credits encouraged ageneral build-up of leverageand led to tax distortions.The concern was raised in a2009 report by then-adviserfor the OECD, Geoff Lloyd,that pointed to the complexstructures involving low-cost loans at the heart ofsome tax arbitrage arrange-ments. Such financing pro-vided “an unintended sub-sidy for cheap cross-borderlending at the expense ofthe lender’s home stateexchequer,” the report said.

Experts study need for global crackdown on tax arbitrageNews analysisVanessa Houlderreports on theOECD’s concernsover the impact oflegal loopholes

In the second part of a series, we examine how US companies have cut tax by moving profits overseas.Reporting by Vanessa Houlder and Megan Murphy, Financial Times, and Jeff Gerth, ProPublica

The billiondollar break born by mistake

More on FT.com’sindepth pages

●A fight worthbillions – how theUS authorities arefighting Americanbanks over taxcredits

●Interactivegraphic – the‘Stars’ deals thathelped the banks’bottom line

●How AIG led theway in structuredtax deals in the1990s

●Read the courtfilings at the heartof the tax creditdispute

www.ft.com/taxwars

Angel Gurría, OECD secretarygeneral, expressed concerns about ‘gaming the system’ AFP

Top 10 countries outside the US where US groupsreinvest their profits

Cumulative reinvestments, 2007-2009

How US companies use check-the-box

$bn

UK

Switzerland

Canada

UK Caribbean islands

Bermuda

Germany

Japan

$41.0bn35%

$38.3bn38%

$15.7bn9%

$17.1bn120%**

$28.8bn105%**

$16.0bn10%

%

Ireland

$50.1bn59%*

Luxembourg

$113.4bn83%

$51.8bn92%

The Netherlands

$39.4bn38%

1

2

3

4

5

6

7

8

9

10

Source: FT/ProPublica analysis of US Commerce Dept data Photos: Headline, Getty, Corbis, Charlie Bibby

Percentage of those profits in non-bank holdingcompanies, the preferred vehicle for multinational tax strategies

* 2007 and 2008 only

** Exceeds 100 per cent because reinvestment in categories other than holding companies is negative

This series isa collaborationby the FT andProPublica, anindependentnonprofitorganisationbased inNew Yorkthat producesinvestigativejournalism

SEPTEMBER 27 2011 Section:Companies Time: 26/9/2011 - 20:10 User: bartlettr Page Name: ICN1 EUR, Part,Page,Edition: EUR, 16, 1


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By April Demboskyand Richard Watersin San Francisco

Tumblr has secured $85m innew funding, indicating avaluation of about $800mfor the fast-growing multi-media internet bloggingsite, a person familiar withthe financing said.

The investment addsTumblr to the list of high-growth social media compa-nies which are generatinghigh levels of investor inter-est before they have evengenerated proved revenues,and in spite of the stockmarket volatility that hasforced companies such asZynga and Groupon todelay their initial publicofferings.

The latest funding round,bringing Tumblr’s total cap-ital raised to $125m, was ledby Greylock Partners andInsight Venture Partners,with Sir Richard Bransonand The Chernin Groupalso investing. Returninginvestors Spark Capital,Union Square Ventures andSequoia Capital also partici-pated.

“We see some of the sameearly dynamics in Tumblrthat led us to invest inFacebook, Pandora andLinkedIn, so are veryexcited to add Tumblr tothat list,” said John Lilly, apartner at Greylock,

The New York start-up

allows users to create theirown highly customisedblogs with multimedia com-ponents such as text, video,photo and audio content,along with links to othercontent posted by users andto other websites. It alsohas a social networkingcomponent that enablesusers to “follow” other blog-gers and view all of theirvarious latest posts in anews stream.

Founded in 2007 by DavidKarp when he was 21, Tum-blr has grown dramatically.Between May 2010 and May2011, the number of Tumblrusers almost tripled to11.8m, according to a studyby Nielsen. Tumblr nowranks third in time spent onsocial networking sites,behind Facebook andGoogle Blogger, but aheadof Twitter and LinkedIn.

It has 30m blogs that gen-erate 40m posts a day, MrKarp said.

The blogging site is onthe brink of a push intoadvertising to cash in on itsbooming online audience. Ithas avoided adding simpledisplay advertising out offear of alienating users but,with 13bn monthly pageviews, display ads couldbring in $150m in annualrevenues, according to theperson familiar with thefundraising.

It is also claimed thatTumblr plans to allowadvertisers to buy “spon-sored links” in its TumblrRadar feature, which auto-matically suggests contentproduced by other peopleon the site and can be per-sonalised to match contentto the particular user’sinterests.

Tumblrfundingvalues itat $800mMEDIA

$85m investmentin latest round

Internet bloggingsite has 11.8m users

Investors sweet on Coke despite tax fearsBEVERAGES

News analysisFears of the demiseof sparkling softdrinks are greatlyexaggerated, writesAlan Rappeport

Muhtar Kent, chief executive of CocaCola, says the beverage group is succeeding, despite the sluggish economy, because it is offering more options to consumers AP

By Sylvia Pfeifer in London

ENI, the Italian energygroup, has resumed oil pro-duction in Libya six monthsafter the civil war broughtoperations to a near stand-still, and hopes to have alarge part of its outputrestored by the end of theyear, said Paolo Scaroni, itschief executive.

He told the FinancialTimes on Monday that thecompany had started upproduction at the weekendand was pumping close to32,000 barrels of oil a dayfrom 15 wells at Abu-Attifel,300km south of Benghazi.

ENI is also in the processof retaking possession oftwo platforms in the Medi-terranean that feed gas intothe Greenstream pipelinethat supplies Italy and cancarry about 10bn cubicmetres of natural gas ayear. It has not been opera-tional since February butMr Scaroni hopes to restartthe gas flow in the next fewweeks, adding that hehoped the pipeline wouldoperate “at its full capacityfor most of this winter”.

The company, which wasthe largest foreign oil pro-ducer in Libya before thecivil war and relies on thecountry for about 13-14 percent of its total production,has been keen to mendfences with the interim

government leaders. MrScaroni helped to persuadeSilvio Berlusconi, primeminister, to allow the Ital-ian military to join othercountries in combat opera-tions and open relationswith the rebels, accordingto a senior diplomat.

Mr Scaroni was also thefirst foreign chief executiveto visit Tripoli and sign anagreement with theNational Transitional Coun-cil. Before the fighting,Italy sourced about 23 percent of its oil needs fromLibya and more than 10 percent of its gas via theGreenstream pipeline.

Mr Scaroni said: “Assum-ing [Muammer] Gaddafi isout, the two biggest chal-lenges are the formation ofa strong, unified govern-ment and the restoration ofsecurity,” in the country.

ENI’s total productionduring the conflict fell toabout 50,000 barrels of oilequivalent a day from about280,000 boe a day before thewar broke out. It continuedto produce at a gas fieldwhose output went towardslocal electric power.

Shares in the company,which have fallen from €18at the end of April, closedup 1.37 per cent on Monday,at €12.54 in Milan.

Mr Scaroni was speakingas ENI said it would partici-pate in the fourth bid roundin Iraq where ENI is theoperator of the Zubair field.It will also take part in acompetition for the develop-ment of Nassiriya field.

They are among the mostquietly efficient lobbyists inthe world. Rarely are theBig Four accounting firmscaught out by regulatoryinitiatives aimed at them,but that appeared to be thecase on Monday when draftproposals circulating inBrussels threatened toupend their entire industry.

The proposals, catchingaccounting firms unawares,included the stunning sug-gestion that audit busi-nesses be entirely split fromthe firms’ non-audit work.They also put forward anumber of other restric-tions including mandatoryterm limits for auditors toserve a single company.

While some initiatives,like auditor rotation, arebeing actively considered inmany countries, includingthe US, others, notably theidea of entirely hiving offaudit practices, have caughtthe industry off-guard. Sen-ior industry figures pri-vately dismissed the ideathat such a revolutionwould be imposed, butadmitted to being shakenby the fact that it had evenappeared in draft form.

The sheer ambition of theproposals has also con-vinced some Brusselsobservers that Michel

Barnier, the internal mar-kets commissioner, is aim-ing high to strengthen hisbargaining position in themonths ahead. “He hasthrown the kitchen sink atit in the hope that he willend up with the gold-platedplug,” said one industry fig-ure who was involved inthe negotiations.

The draft, seen by theFinancial Times, is beingcirculated around the Com-mission, which will publisha final proposal in Novem-ber. It will then face theformidable challenge ofwinning support from theEuropean Union memberstates and the Europeanparliament.

While investment banks

have been widely blamedfor causing the recentfinancial crisis, auditorshave rarely been far downregulators’ list of priorities.The EU proposals mark thelatest stage in a long-run-ning global debate that pre-dates the financial crisisabout how auditors shouldoperate.

More recently, regulatorshave taken a much closerinterest, especially since thefinancial crisis revealedsome cases of what US

regulators termed a “dis-turbing lack of scepticism”in vetting their clients’accounts.

Regulators have been con-cerned for years about therisks of concentrationamong the Big Four firms –PwC, KPMG, Ernst &Young and Deloitte – whobetween them audit nearlyall the world’s biggest com-panies. Since ArthurAndersen collapsed in thewake of the Enron account-ing scandal, officials haveworried that a further bigscandal could bring downanother firm.

Jeremy Newman, chiefexecutive of BDO Interna-tional, the fifth-largest glo-bal network, said: “Fromwhat I understand of theproposals, I am concernedabout the extent of some ofthem, but from the perspec-tive that they recognisethere is a serious problemwith the structure of themarket that needs address-ing, that in principle is agood thing.”

BDO and its so-calledmid-tier rivals have longpushed for a shake-up ofthe audit market to lowerbarriers to entry. VariousBig Four firms haveaccepted some of their calls,such as banning the use ofclauses in contracts thatmandate only a Big Fourfirm can be used for certainnon-audit work.

Audit accounts for abouta third of the revenues ofthe UK arms of the BigFour – the largest opera-tions in their European net-works and the ones to pub-lish the most detailedaccounts.

Brussels’ proposals catchBig Four on the back footSUPPORT SERVICES

News analysisAccounting firmsalarmed at draftEU rules, writeJennifer Hughesand Alex Barker

ENI restarts oilproduction fromwells in LibyaOIL & GAS

Gas platforms dueto come onstream

Michel Barnier, EU internalmarkets commissioner

News digestSamsung heardin Apple lawsuitApple has infringed uponSamsung Electronicspatents since entering themobile phone market withthe iPhone 3G, a lawyerfor Samsung told a Dutchcourt on Monday as theKorean group seeks a banon some Apple products inthe Netherlands.

“Apple just entered the

market in 2008 withouttaking care of thelicences,” Bas Berghuisvan Woortman, whorepresents Samsung, saidin The Hague court.

Samsung filed fourlawsuits against Apple inthe Netherlands, and thefirst scheduled hearing wasyesterday.

Samsung is claimingApple’s iPhone and iPad,which use 3G technology,

infringe Samsung patentsand it is seeking a ban ontheir sale in theNetherlands.

Apple told the court ituses Intel Corp’s chipsetsfor iPhones in Europe, andlicences are covered thatway. “When we enteredthe market we did havepatent licences,” saidRutger Kleemans,representing Apple.

Bloomberg, Amsterdam

Chevron in $28bnLNG ventureChevron, the US oil andgas group, has given theofficial go-ahead for one ofAustralia’s largest naturalgas ventures by formallyapproving a A$29bn ($28bn)investment in theWheatstone project.

Wheatstone, off theWestern Australian coast,is the latest Australian

liquefied natural gasproject to be given finalinvestment approval thisyear.

Analysts predict that theWheatstone project andothers already planned willenable Australia eventuallyto become the world’slargest producer of LNG,eclipsing Qatar, which iscurrently the number one.

Peter Smith, Sydney andSylvia Pfeifer, London

Carbonated soft drinkshave become a publicenemy among health advo-cates and lawmakers whohave been trying to taxthem, but Coca-Cola’s chiefexecutive argues that thebeverages’ demise has beengreatly exaggerated.

“There’s a misnomer inthe notion that sparklingbeverages are not growing,or that we’re not able togrow sparkling beverages,”Muhtar Kent, chief execu-

tive of Coke, said in aninterview with the Finan-cial Times. “There’s a viewthat trends are negative,that trademark Coca-Cola isnot growing, and that’s notthe case.”

Mr Kent pointed to 4 percent year-on-year growth inits sparkling beverage busi-nesses during the first halfof 2011, noting that saleswere up in the US. He saidthat US consumers are“confused” by the sluggisheconomic recovery, but thatCoke is succeeding by giv-ing them more options.

Last week Coke unveiled“mini-cans”, to offer con-sumers a smaller beverageat a lower price. The moveis intended to give acheaper option at a timewhen the company hasbeen forced to raise priceson its standard-sized drinks

because of the high cost ofraw materials.

Coke has been a darlingof Wall Street in the pastyear, with its share price upnearly 17 per cent sinceSeptember 2010. The com-pany had $35.1bn in net rev-enue last year and contin-ued to take market sharefrom its biggest rival, Pepsi.

“They’re firing on all cyl-inders,” said Bonnie Her-zog, beverage analyst atWells Fargo. “They didn’tgive up on the trademarkCoca-Cola brand, they madeit more relevant toconsumers.”

Ms Herzog said that Cokehad benefited from target-ing its products at youngerconsumers and from theacquisition of its biggest USbottler, which has reducedcosts and made its supplychain more nimble.

Analysts at BernsteinResearch polled Coke inves-tors and found that 80per cent of those queriedwere pleased with itsperformance.

However, some were fear-ful that the company wasovervalued and that it wasinvesting too heavily todrive sales volume at theexpense of profit growth.

Threats of taxes oncarbonated soft drinks arealso a potential headwind,but the company has sofar been successful atfending off significantlegislation.

Coke investors are eagerto see what Mr Kent’s “nextact” will be, and bankersspeculate that it could be apotential suitor for Pep-siCo’s snacks business orperhaps acquire an energydrink company. AlthoughCoke is a distributor ofHansen’s Monster energydrink, Mr Kent has down-played the future of thecategory.

“As a long-term perspec-

tive, there will be a taper-ing off of demand,” he said.“It’s not something thatwill be here to stay in 20years’ time.”

Meanwhile, Mr Kent saidthat rather than concen-trate on a next act, heremained focused onachieving his larger goal ofhelping Coke double itsannual revenues in the next10 years.

“We are cautiouslypleased with what has hap-pened with our brand met-rics, with our progress, withour investments,” he said.“But we know we can dobetter.”

Coca-Cola


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70

72

VIEW FROM THE TOPFor the full video interviewwith Muhtar Kent, go towww.ft.com/vftt

BEVERAGES

News analysisFears of the demiseof sparkling softdrinks are greatlyexaggerated, writesAlan Rappeport

More news at FT.com/companies

●Carlyle Group, the privateequity company, has boughtITRS, a UK company thatmakes software to monitorbank trading and riskmanagement. Although arelatively small acquisition,the ITRS software is used

by eight out of the top 10global investment banks, aswell as hedge funds andbrokers to monitor the risksthey are exposed to whentaking intraday positionsacross multiple assetclasses and exchanges.

●Is UK industry on thedefence?Peter Marsh, manufacturingeditor, looks at whetherenough is being done toharness the full potential ofBAE Systemswww.ft.com/video

SEPTEMBER 27 2011 Section:Companies Time: 26/9/2011 - 20:04 User: puttnama Page Name: ICN2 EUR, Part,Page,Edition: EUR, 17, 1


Companies | International

Trade

FUTURES

OPTIONS

FOREX www.bfl.co.uk

Email: [email protected] Tel: +44 (0)20 7758 4777 Authorised and Regulated by the Financial Services Authority

Berkeley Online is a trading name of Berkeley Futures Limited

Multi As$etBr kerage

+44 20 7716 8000www.admisi.com

[email protected]

Regulated by the FSA

Trading Directory UK Office: +44 20 7775 6671 | US Office: +1 212 641 6500 | ASIA Office: +852 2905 5554

UBS’s next chief needs more than the right passport

Who should lead UBS? For the time being,the board – led by Kaspar Villiger – hasdecided the best man for the job is SergioErmotti, the former investment bank bossat Italian group UniCredit. But they haveonly given him the chief executive role onan interim basis, promising to make afinal decision, after considering all suitableinternal and external candidates, by thespring.

One thing is for sure – Mr Ermotti is noOswald Grübel, the blunt German bankerwho has steered UBS’s return from thebrink of collapse over the past two and ahalf years. Until the bank was rocked bythe emergence of a $2.3bn trading scandal

less than a fortnight ago, most people –bar the longish list of Swiss politiciansand regulators he had irked with hisstraight-talking – thought Mr Grübel wasdoing a good job. The 67-year-old had comeout of retirement, after an impressivecareer leading rival Credit Suisse, to dowhat he saw as his duty for Switzerlandand the broader financial system.

The sniping from the Swissestablishment has intensified dramaticallysince the trading incident. Much of it is anunderstandable response to the fact that abank – once one of Switzerland’s proudestbrands – has again embarrassed thecountry, barely three years after having tobe bailed out with government money.Switzerland has been given anotherunwelcome reminder that its enormousbanking system carries potentiallydisastrous risks for its national economy.

That Mr Grübel was a German nationaldid nothing to help keep the Swiss onside,either. And in this, Mr Ermotti – not anItalian as his name and recentemployment history might suggest, but aSwiss national – has an advantage.

Given the political climate in

Switzerland, the UBS board felt the new(interim) man needed to carry the rightpassport. Considering that constraint – andthe tight time span the board had todecide on a surprise internal successor –Mr Ermotti was probably the right choice.

The only other credible alternative waswealth management boss Jürg Zeltner. Buthis appointment would have posed twoproblems – first, executives say there wasno natural successor to Mr Zeltner withinthe wealth management business, creatinga new problem while filling the CEOvacuum; second, and more importantly,picking Mr Zeltner as the next CEO wouldhave sent a premature and fairlyunequivocal signal that the bank wasdeprioritising investment banking.

Mr Ermotti’s nomination addresses bothissues. As chairman of Europe, the MiddleEast and Africa, he was not a businesshead, so his appointment leaves noproblematic gap to fill. And he adamantlybelieves in the UBS universal bankstrategy – albeit one derisked and shrunk.

Whether Mr Ermotti is the right man forthe job in six months’ time is anotherquestion entirely. It depends on two big

issues. First, he must prove he is up tothe role. Meeting and communicating withstaff from across UBS’s operations in all ofits key regions – Switzerland, the UK, Asiaand the US – is a top priority. That will bea challenge for a man who until now hasbeen focused on clients in one region, withlittle contact with the bank’s broaderechelons of executives. Most staff do notyet know him. Also key will be the task ofpinpointing the failings behind the tradingscandal, fixing them and more broadlycoming up with a credible plan torestructure the investment bank in a waythat allows it to remain worthwhile.

And it is here that the second big issuecomes into play – how much freedom willthe board give him to retain UBS’s modelof universal banking when politicians andregulators scream for it to be split up?

Mr Ermotti’s performance over the nexthalf-year – juggling the interests of staff,shareholders and the Swiss establishment– may be so stellar, and the Swissconstraints so tight, that there is noquestion that he should be anointed to apermanent position as CEO.

But if there are any doubts, the board

should have no hesitation aboutappointing the next CEO from outside thebank. In doing so they should putquestions of national identity to one side.

In this scenario, a small coterie ofbankers in Europe and beyond might besuitable. But one man stands out as aparticularly neat choice. Bill Winters, theLondon-based investment banker who waspreviously number two at JPMorgan, thegreatest survival story of the financialcrisis, has enhanced his CV, playing aninfluential role on the UK government-appointed Commission on Banking.

Some of the Commission’s conclusions –notably its concept of ringfencing high-street banking from higher-risk investmentbanking – are unproven. But Mr Winters’role in coming up with a thoughtful reporton how Britain’s banking system shouldbe derisked, combined with a widelypraised record as an investment banker,would make him a compelling choice. MrVilliger should give him a call.

Patrick Jenkins is the FT’s BankingEditor

[email protected]

INSIDE BUSINESS

Patrick Jenkinson Finance

By Andrew Parker andRose Jacobs in London

EasyJet sent shockwavesthrough the aviation worldafter Europe’s second-larg-est low-cost carrier said SirStelios Haji-Ioannou, itsfounder and largest share-holder, was planning to setup a new airline.

EasyJet, which isembroiled in an acrimoni-ous and protracted disputewith Sir Stelios over com-pany strategy, said on Mon-day it had been informed byhim that he “intends to setup an airline brandedFastjet”. However, someanalysts claimed Sir Stelioswould find it difficult toestablish another airline,adding he may instead betrying to secure more con-cessions from EasyJet.

EasyJet signalled it wasprepared to go to court toenforce an agreementreached last October, underwhich Sir Stelios agreed notto acquire an interest ofmore than 10 per cent inanother airline licensed inthe European EconomicArea for two years.

Sir Stelios said he had ter-minated the agreement,alleging that EasyJet’sdirectors had breached itsprovisions through “asmear campaign conducted

by off-the-record briefingsto journalists”, but declinedto comment on any plans toestablish a rival airline.EasyJet denied flouting theagreement. Sir Stelios,whose private companyholds the licensing rights tothe EasyJet brand, addedhe remained “committed toenhancing the reputation ofthe EasyJet brand and theEasy brand in general”.

One person close toEasyJet, who declined to benamed, said there was “noroom” for another low-costairline in Europe, addingthe more worrying develop-ment was Sir Stelios’ deci-sion to wage “war” with thecompany’s board.

Andrew Lobbenberg, ana-lyst at RBS, EasyJet’s bro-ker, said: “We see thisdevelopment as an escala-tion of Stelios’ negotiationswith EasyJet for increasedshareholder distributionsand restrictions on aircraftpurchases.”

For several years, SirStelios has been calling onEasyJet to focus on share-holder returns and curb itsfleet expansion. Last week,the airline announced itsfirst-ever dividends, worth£190m ($295m).

Schroders, EasyJet’s fifthlargest shareholder, said itfound it “odd” that Sir Stel-ios “one minute is criticis-ing EasyJet for orderingnew aircraft and the nextgoes and starts a new air-line”. Another EasyJetshareholder, who declinedto be named, said he pre-sumed Sir Stelios would donothing to harm EasyJet.

As UBS embarks on asweeping restructuring ofits investment bank in thewake of a $2.3bn allegedrogue trading scandal, thereare obvious targets forretrenchment.

Whether senior execu-tives – including SergioErmotti, the Swiss group’snewly appointed interimCEO – will be able to shrinkthe business fast enough tosatisfy regulators and inves-tors may be the bigger chal-lenge, analysts say.

UBS’s investment bank,which has lurched from cri-sis to crisis over the past 15years, lost one of its biggestadvocates on Saturday withthe exit of Oswald Grübel,the veteran banker whoheaded both of the coun-try’s biggest banks duringhis career.

After spending the past 18months rebuilding areas ofthe business that had beenbattered by the financialcrisis, most notably a fixedincome division that wroteoff $50bn worth of toxicdebt, Mr Grübel believedan integrated bankinggroup needed to retaina substantial presence ininvestment banking,according to people familiarwith the situation.

Now that he has left, ana-lysts are already pushingfor Mr Ermotti to wield amuch sharper axe. A closelook at the group’s businessmix and capital allocationshows why. In 2010, UBS’sinvestment bank accountedfor 60 per cent of allocatedcapital or risk-weightedassets (RWAs), but just 35

per cent of pre-tax profits,according to RBC CapitalMarkets. By contrast, Itsflagship wealth manage-ment business accountedfor 33 per cent of pre-taxprofits, but just 8 per centof allocated capital andRWAs.

So far, UBS has providedlittle detail about its plansfor slimming down theinvestment bank, whichwill be revealed in full at aninvestor presentation inNew York on November 17.

But some UBS insidersremain concerned that sen-ior executives have notfully grasped the scale ofthe changes ahead, includ-ing the thousands of jobcuts that may need to bemade.

UBS has alreadyannounced 3,500 job lossesacross the group, about halfof which will fall within the17,700-person strong invest-ment bank. A more credible

number is closer to 10,000,several analysts said, whichmeans 5,000 in additionaljob losses in a businessalready suffering from rock-bottom morale.

UBS has already mappedout a programme for shut-ting down the capital-inten-sive businesses in a fixedincome unit that consumestwo-thirds of the invest-ment bank’s capital, suchas structured rates andcredit desks. But some exec-utives want to retain a foot-hold even in trading opera-tions that will be most dis-advantaged by a globalrewrite of bank capitalrequirements, according topeople familiar with thesituation.

UBS’s risk-weightedassets rose by nearly 5 percent in the second quarterof 2011, according to ana-lysts at Morgan Stanley,signalling there is resist-ance to larger-scale cuts.Executives remain keen, forexample, to retain its fixedincome operations in theUS in spite of repeated callsfor these to be shuttered.

Several analysts ques-tioned whether the week-end’s management uphea-val would further disruptefforts to reshape the sizeand function of the invest-ment bank.

“The decision to carry outa far ranging review ofUBS’s business to addressthe much changed marketconditions, was absolutelycorrect,” says ChrisWheeler at Mediobanca.“However, even before theresults have beenannounced the bank hasput the execution of theplan in jeopardy.”

What operations UBS willtry to hold on to is easier toforecast: foreign exchange,where it remains a top oper-ator, its equities franchise,and its advisory and under-writing businesses. In the-ory, those are capital-light,less risky areas, although$2.3bn in alleged unauthor-ised trading losses on thebank’s Delta One desk inthe bowels of the equitiesdivision have severelytested that maxim.

Winning lucrative merg-ers and acquisitions and ini-tial public offering man-dates from its so-called“ultra high net worth” cli-ents will be crucial to thatstrategy, as will sellinghigher-margin investmentbanking products.

“From a long-term per-spective, UBS is refocusingon a business that is lessrisky, but carries a higherreturn,” say analysts atGoldman Sachs. “This is along-term positive, in ourview.”

Sir Steliosplans rivalairline, saysEasyJetTRAVEL & LEISURE

Carrier in disputewith its founder

Move seen asnegotiating tactic

Swiss bank urged touse a much sharper axeBANKS

News analysisAnalysts areconcerned at thescale of challengesahead, writesMegan Murphy

INDEPTHNews, comment and analysisof the latest revelations ofunauthorised trading to afflictan investment bankwww.ft.com/ubs

Pre-tax profit($bn*)

Remuneration($bn*)

Staff=1,000

H1 2011

Source: FT research * Figures converted to US dollars at average exchange rate

Investment banking business

3.9 4.6

Barclays Capital

4.31.7

Credit Suisse

4.85.4

Deutsche Bank

3.71.3

UBS

8.45.7

Goldman Sachs

Notdisclosed

Notdisclosed

4.21.9

Morgan Stanley

5.96.8

JPMorgan 27,700

15,359

24,100

21,300

17,776

Photo: Reuters

SEPTEMBER 27 2011 Section:Companies Time: 26/9/2011 - 20:21 User: puttnama Page Name: ICN3 EUR, Part,Page,Edition: EUR, 18, 1


SEPTEMBER 27 2011 Section:Ad Page Time: 26/9/2011 - 15:39 User: sherrisn Page Name: AD CLASS, Part,Page,Edition: EUR, 19, 1


Init Notes Selling Buying + orChrge Price Price - Yield

3A Alternative Funds (LUX)Regulated

3A Multi Strategy USD.... $2065.52 ..... –

3A Multi Strategy EUR .... ∑1325.93 ..... –

3A Multi Strategy CHF .... SFr1165.27 ..... –

3A Multi Arbitrage USD... $1419.14 ..... 1.41

3A Multi Arbitrage EUR ... ∑1251.98 ..... 1.58

3A Multi Arbitrage CHF ... SFr1213.92 ..... 1.19

3A Long/Short USD ........ $1293.25 ..... –

3A Long/Short EUR......... ∑1025.42 ..... –

3A Long/Short CHF......... SFr952.36 ..... –

3A Asia USD................... $950.88 ..... 2.76

3A Asia EUR ................... ∑938.06 ..... 2.86

3A Asia CHF ................... SFr849.04 ..... 2.14

3A Trading Fund USD ..... $904.69 ..... –

3A Trading Fund EUR ..... ∑901.12 ..... –

ACPI FM Limited (JER)Regulated

Global Credit Fund USD .. $11.46 ..... –

Multi Strategy Fund USD $187.89 –2.16 –

Equity Alpha Fund USD... $10.40 +0.15 –

Focused Equity Fund USD. $8.92 +0.04 –

Multi–Asset Fund USD.... $76.56 ..... –

Hedge Equity Fund USD.. $133.17 –0.87 –

International Bond Fund USD . $16.71 –0.07 –

Select Unit Trust – Balanced Fund USD. $10.77 +0.09 –

ACPIOther International Funds

ACPI India Fixed Income UCITS Fund GBP .. £88.94 ..... –

Emerg Mkts Fixed Income Fund USD $107.09 –0.87 –

Global Credit Fund USD .. $10.35 –0.03 –

Global Credit Fund EUR .. ∑10.36 –0.03 –

Global Equity Fund USD.. $84.22 –3.76 –

Global Fixed Income Fund USD . $127.78 –0.32 –

Global Fixed Income Fund EUR . ∑126.87 –0.33 –

India Fixed Income Fund USD $9.74 –0.16 –

Select Fund USD ............ $143.04 +0.27 –

Strategic Opportunities Fund USD $113.00 ..... –

Absolute Return Fund TrustOther International

Euro Class May 31 ......... ∑849.73 ..... 0.00

US Dollar Class May 31 .. $849.73 ..... 0.00

ACTIVE TRADING FUND (IRL)Regulated

Active Trading Fund USD Sep 21 . $979.39 ..... –

Active Trading Fund EUR Sep 21.. ∑980.76 ..... –

Active Trading Fund GBP Sep 21 . £980.12 ..... –

Adelante Guernsey Limited (GSY)Trafalgar Court, Admiral Park, St Peter Port, Guernsey

Regulated

Adelante Emerging Opportunities Fund . $17.6087 ..... –

Adelante Sovereign High Yield Fund . $62.6574 ..... –

Adelante Exotic Debt Fund Limited (GSY)Trafalgar Court, Admiral Park, St Peter Port, Guernsey

Regulated

Adelante Exotic Debt Fund Limited .. $25.0965 ..... –

Adelphi Capital LLP (CYM)Regulated

The Adelphi Europe Fund

USD Class (Est) Sep 23... $328.5877 ..... –

EUR Class (Est) Sep 23... ∑175.9211 ..... –

Adelphi Emerging Europe Fund

USD Class (Est) Sep 23... $135.8958 ..... –

EUR Class (Est) Sep 23... ∑118.8756 ..... –

Alceda Fund Management S.A. / Member of Aquila CapitalGroup36, avenue du X Septembre, L–2550 Luxembourg Phone: 00352 / 248 329–1

Fund Information: www.aquila–capital.de

Other International Funds

AC Risk Parity 12 Vol Euro ∑141.56 148.64 ..... –

AC Risk Parity 7 Vol Euro ∑122.71 128.85 ..... –

AC Risk Parity 7 Vol GBP £123.61 129.79 ..... –

AC Triple Alpha Fund...... ∑56.30 59.12 ..... –

AC Triple Alpha Fixed Income 50 . ∑104.02 106.10 ..... –

AC Pharos Evolution EUR ∑61.83 64.92 ..... –

AC Pharos Evolution GBP £78.54 82.47 ..... –

Alger SICAV (LUX)Regulated

American Asset Growth A . $25.86 +0.14 –

American Asset Growth I $27.16 +0.15 –

Allianz Global Investors Luxembourg S. A. (LUX)6A, route de Trèves, L–2633 Senningerberg

http://funds.ft.com/allianz/globalinvestorslux

FSA Recognised

Allianz Euro High Yld Bd A F . ∑95.54 98.41 ..... –

RCM BRIC Equity – AT – EUR ∑70.01 73.51 ..... –

RCM China – A – GBP F. 5 £98.41 103.33 ..... –

RCM Enhanced Sh.Term Euro – AT– EUR F ∑106.38 106.38 ..... –

RCM Eur.Eq. Dividend – AT – EUR F .. 5 ∑145.69 152.97 ..... –

RCM Euroland Equity Growth – A – EUR F . ∑95.36 100.13 ..... –

RCM Europe Equity Growth – A – EUR F... ∑112.51 118.14 ..... –

RCM Oriental Income –A– (USD) –USD F . 5 $71.3 74.87 ..... –

Allianz Global Investors Ireland Limited (IRL)5 Harbourmaster Place, International Financial Services Centre, Dublin 1,Ireland

http://funds.ft.com/allianz/globalinvestorsireland

FSA Recognised

Allianz RCM US Equity – A – EUR F . ∑38.33 ..... –

Allied Dunbar Intl Fund Mgrs (1600)F (IOM)43–51 Athol Street, Douglas, IOM 01624 661551

FSA Recognised

ADI Managed .............. 5 $1.4680 1.5500 –0.002 0.4400

ADI Mgd Currency ....... 5 $0.3526 0.3711 ..... 0.1900

ADI W'wide Eq............. 5 $1.3630 1.4410 –0.001 0.0000

ADI Nth Amer .............. 5 $3.2220 3.4020 +0.0130 0.0000

ADI Far East ................ 5 $2.2410 2.3850 –0.071 0.0000

ADI Gilt & Income ........ 5 £0.3343 0.3520 –0.0009 2.8300

ADI UK Cap Gth ........... 5 £0.6613 0.7018 +0.0020 1.0400

ADI Europe Fd ............. 5 ∑2.5110 2.6520 +0.0460 0.4700

For conversion prices of shares phone: 01624 662860

American Century Sicav (LUX)JPM customer service: +352–46–268–5633

FSA Recognised

ACI Gbl Grwth Equity Acc F $9.35 ..... –

ACI Gbl Grwth Equity I Acc F . $9.46 ..... –

ACI US Grwth Equity Acc F . $9.67 ..... –

ACI US Grwth Equity I Acc F.. $9.78 ..... –

Amundi Funds (LUX)5 Allee Scheffer L–2520 Luxembourg+ 44 (0)20 7074 9332

http://www.amundi–funds.com/

FSA Recognised

Absolute Var 2 EUR ....... £95.71 ..... –

Bd. Euro Corporate AE Class – R – EUR 5a ∑15.11 ..... –

Bd. Global AU Class – R – USD.. 4a $22.06 ..... –

Eq. Emerging Europe AE Class – R – EUR .. 4a ∑24.59 ..... –

Eq. Emerging World AU Class – R – USD... 4a $80.54 ..... –

Eq. Greater China AU Class – R – USD . 4a $419.89 ..... –

Eq. Latin America AU Class – R – USD 3 $534.77 ..... –

Eq. US Opportunities AU Class – R – USD . $9.08 ..... –


Antares Investment Management LtdOther International

AEF Ltd Usd (Est) Sep 16 $390.6576 ..... –

AEF Ltd Eur (Est) Sep 16. ∑388.9297 ..... –

Arisaig PartnersOther International Funds

Arisaig Africa.................. $13.06 ..... –

Arisaig Asia Consumer ... $38.27 ..... –

Arisaig Latin America ..... $19.4 ..... –

ARN INVESTMENT SICAV (LUX)12, rue Eugène Ruppert, L–2453 Luxembourg

Regulated

ARN Newly Indus.Ec.Fd A –C $80.17 –1.52 –

Artemis International SICAV (LUX)Regulated

Global Equity A EUR Acc . ∑68.80 +0.16 –

Pan European Equity A EUR Acc ∑49.50 +2.38 –

Pan European Equity A EUR Inc. ∑49.35 +2.38 –

Artemis Investment Management LLP (CYM)Regulated

Artemis Gbl Hedge Fd Ltd GBP . £49.71 ..... –

Artemis Gbl Hedge Fd Ltd EUR . ∑47.38 ..... –

Artemis Gbl Hedge Fd Ltd USD . $50.28 ..... –

Artemis UK Hedge Fd Ltd EUR ∑157.23 ..... –

Artemis UK Hedge Fd Ltd GBP .. £171.79 ..... –

Artemis UK Hedge Fd Ltd USD.. $163.81 ..... –

Artisan Partners (IRL)Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland

Tel: 44 (0) 207 766 7130

FSA Recognised

Artisan Global Funds plc

Artisan Emerging Markets Fund EUR H ∑7 ..... –

Artisan Emerging Markets Fund USD H $6.99 ..... –

Artisan Global Value Fund USD H. $8.82 ..... –

Artisan Value Fund USD H $9.2 ..... –

Ashburton Fund Managers Limited (JER)17 Hilary Street, St Helier, Jersey JE4 8SJ 01534 512000

www.ft.com/funds/ashburton

FSA Recognised

Ashburton Global Funds PCC

Sterling Asset Mgt. Fund PC . £2.2338 2.3455 ..... 0.79

Sterling Asset Mgt. Fund PC – Class I.. £98.0304 102.9319 ..... 0

Euro Asset Mgt. Fund PC . ∑1.1423 1.1994 ..... 1.08

Global Euro Asset Management Fund PC I 5 ∑90.8496 95.3921 ..... 0

Sterling Total Return Bond Fund PC. £5.8949 6.1012 ..... 1.99

Dollar Total Return Bond Fund PC $0.9831 1.0175 ..... 1.84

Sterling Intl. Eq. Fund PC . £45.2186 47.4795 ..... 0

Dollar Intl. Eq. Fund PC.. $8.2545 8.6672 ..... 0

Americas Eq. Fund PC . 5 $1.7452 1.8325 ..... 0

Americas Eq. – £ Feeder PC .. 5 £1.0926 1.1472 ..... 0

European Eq. Fund PC. 5 ∑3.5386 3.7155 ..... 0

European Eq. – £ Feeder PC.. 5 £0.9869 1.0362 ..... 0

European Eq – £ Feeder PC – Class I .. £85.9133 90.209 ..... 0

Japan Eq. Fund PC ...... 5 $2.1239 2.2301 ..... 0

Japan Eq. – £ Feeder PC . 5 £1.0443 1.0965 ..... 0

Ashburton Japan Equity Fund PC I class F . ..... –

Chindia Eq. – £ Feeder PC.. 5 £1.0715 1.1251 ..... 0

Chindia Eq – £ Feeder PC – Class I . £72.8254 76.4667 ..... 0

Ashburton Fund Managers Limited (JER)Regulated

Ashburton Replica Portfolio Ltd

£ Asset Management Fund . £32.7936 34.6358 ..... 0

$ Asset Management Fund . $29.0806 30.6984 ..... 0

Euro Asset Management Fund.. ∑1.3406 1.4156 ..... 0

Multi Asset Cautious Fund GBP. £1.0434 1.0956 ..... 0.61

Multi Asset Cautious Fund GBP – Class I ... £96.596 101.4258 ..... 0.63

Multi Asset Balanced Fund EUR ∑0.926 0.9723 ..... 0.11

Multi Asset Balanced Fund GBP £1.0939 1.1486 ..... 0.2

Multi Asset Balanced Fund USD $1.0709 1.1244 ..... 0.45

Multi Asset Balanced Fund GBP – Class I .. £97.2551 102.1179 ..... 0.48

Multi Asset Balanced Fund USD – Class I .. $93.3842 98.0534 ..... 0.68

Multi Asset Balanced Fund EUR – Class I .. ∑93.2592 97.9222 ..... 0.64

Multi Asset Aggressive Fund GBP. £0.9791 1.0281 ..... 0.17

Multi Asset Aggressive Fund GBP – Class I . £88.1903 92.5998 ..... 0.08

Ashburton Emerging Markets Funds Limited

Chindia Eq Fund .......... 5 $0.8521 0.8947 ..... 0

Chindia Eq – Class I ...... $111.6615 117.2446 ..... 0

Ashburton Money Market Fds Limited

£ Money Market ............. £1.3135 1.3135 ..... 0.25

$ Money Market ............. $1.1708 1.1708 ..... 0.01

EUR Money Market......... ∑1.1779 1.1779 ..... 0.7

Ashmore Investment Mgmt Ltd (CYM)Regulated

Ashmore Emerging Markets Debt. $203.9357 ..... –

Ashmore Management Company Ltd (GSY)Regulated

Emerging Mkts Liquid Inv P'folio .. $11.444 ..... –

Local Currency Debt Pflo $30.1866 ..... –

Russian Debt Portfolio .... $79.5989 ..... –

Ashmore Asian Recovery $34.2262 ..... –

Emerging Economy ........ $20.7425 ..... –

Multi–Strategy ............... $19.2382 ..... –

Emerging Mkts Global Inv Pfolio $95.831000 ..... –

Emerging Mkts Corporate High Yield $123.8997 ..... –

Turkish Debt Fund Ltd.... $98.235 ..... –

Ashmore Management Company LtdOther International Funds

Ashmore Russian Equity. $951.2506 ..... –

Ashmore Sicav (LUX)2 rue Albert Borschette L–1246 Luxembourg

FSA Recognised

EM Equity Select USD F . 5 $98.1 ..... –

EM Mkts Corp.Debt USD F . $103.29 ..... –

EM Mkts Debt NOK F..... NKr104.92 ..... –

EM Mkts Debt GBP F ... 5 £103.04 ..... –

EM Mkts Inv.Grade Corp. Debt USD F .. $104.99 ..... –

EM Mkts Loc.Ccy Bd USD F $106.21 ..... –

EM Mkts Loc.Ccy Money Mkt USD F $97.99 ..... –

EM Mkts Sov.Debt USD F $106.81 ..... –

EM Mkts Sov.Inv.Grade Debt USD F. $107.44 ..... –

Emerging Markets Debt Inst USD.. 5 $170.08 ..... –

Emerging Markets Debt Inst EUR .. 5 ∑116.91 ..... –

Emerging Markets Debt Retail USD 5 $91.16 ..... –

Emerging Markets Debt Retail EUR 5 ∑156.01 ..... –

Local Currency GBP F.. 5 £99.8 ..... –

Local Currency Inst EUR F 5 ∑96.83 ..... –

Local Currency Inst USD F 5 $81.34 ..... –

Local Currency Retail EUR F 5 ∑94.26 ..... –

Local Currency Retail USD F .. 5 $103.56 ..... –

Aspect Capital Ltd (UK)Other International Funds

Aspect Diversified USD (Est) $364.52 ..... –

Aspect Diversified EUR (Est) ∑218.25 ..... –

Aspect Diversified Trends USD . $107.63 ..... –

Aspect Diversified Trends EUR.. ∑107.36 ..... –

Aspect Diversified Trends GBP . £110.06 ..... –

Atlantas Sicav (LUX)Regulated

American Dynamic Sep 20.. $2030.4 ..... –

American One Sep 20 .... $1819.35 ..... –

Bond Global Sep 20........ ∑1043.63 ..... –

Eurocroissance Sep 20... ∑472.61 ..... –

Far East Sep 20.............. $587.45 ..... –


Atlantis Investment Mgmt (Ireland) Ltd (IRL)Northern Trust, George Court 54–62 Townsend Street, Dublin 2 Rep of Ireland 00 353 1 542 2000

FSA Recognised

Atlantis Asian Fund USD F. d $5.030 ..... –

Atlantis Asian Fund GBP 5 £7.110 ..... –

Atlantis Asian Fund EUR 5 ∑7.110 ..... –

Atlantis China Fd F ...... 5 $6.330 ..... –

Atlantis Japan Opps Fund USD H .. 5 $1.133 ..... –

Atlantis Japan Opportunities Fund GBP .. 5 £10.319 ..... –

Atlantis Japan Opportunities Fund EUR .. 5 ∑10.617 ..... –

Atlantis New China Fortune Fund .. 1a $0.908 ..... –

Atlantis China Healthcare Fund H.. 5 $1.030 ..... –

Atlantis Fund Management (Guernsey) LtdOther International Funds

Atlantis Jap Gwth Undil Sep 26. £0.8451 ..... –

Atlas Capital SAOther International Funds

First European Growth Inc – USD Class. $124.25 ..... –

First European Growth Inc – CHF Class . SFr266.32 ..... –

First USD Composite Inc. $729.34 ..... –

First EURO Composite Inc . ∑131.07 ..... –

For Attica Institutional Multi–Manager Plc Fds see MM Institutional Fds Plc

BDT Invest LLP (IRL)52 Jermyn Street, London SW1Y6LX +44 (020) 7659 1300

FSA Recognised

BDT Asian Focus GBP A. 3 £23.02 –0.74 –

BDT Asian Focus GBP B E £24.45 –0.79 –

BDT Asian Focus EUR A. 3 ∑16.45 –0.41 –

BDT Asian Focus EUR B. E ∑16.81 –0.41 –

BDT Asian Focus USD A. 3 $20.04 –0.65 –

BDT Asian Focus USD B E $21.21 –0.68 –

BDT Oriental Focus USD A 3 $17.14 –0.58 –

BDT Oriental Focus USD B.. 0 E $18.03 –0.6 –

BDT Oriental Focus EUR A 3 ∑15.63 –0.41 –

BDT Oriental Focus EUR B 0 E ∑16.52 –0.44 –

BDT Oriental Focus GBP A 3 £22.04 –0.75 –

BDT Oriental Focus GBP B 0 E £23.05 –0.78 –

BDT Japanese Focus GBP A 3 £5.62 –0.09 –

BDT Japanese Focus GBP B . E £5.67 –0.09 –

BDT Japanese Focus EUR A 3 ∑5.96 –0.07 –

BDT Japanese Focus EUR B . E ∑6.05 –0.07 –

BDT Japanese Focus USD A .. 3 $7.59 –0.14 –

BDT Japanese Focus USD B . E $7.82 –0.15 –

BDT Japanese Smaller Cos USD A. 3 $7.99 –0.26 –

BDT Japanese Smaller Cos USD B 0 E $8.33 –0.27 –

BDT Japanese Smaller Cos EUR A. 3 ∑7.49 –0.19 –

BDT Japanese Smaller Cos EUR B. 0 E ∑7.7 –0.2 –

BDT Japanese Smaller Cos GBP A. 3 £6.92 –0.21 –

BDT Japanese Smaller Cos GBP B. 0 E £6.8 –0.2 –

BDT Japanese Smaller Cos JPY A . 3 Y579.78 –16.93 –

BDT Japanese Smaller Cos JPY B . 0 E Y603.11 –17.59 –

BLME Asset Management (LUX)BLME Sharia'a Umbrella Fund SICAV SIF

Regulated

$ Income Fund – Share Class A Acc. $1078.84 ..... –

$ Income Fund – Share Class B Acc. $1092.63 ..... –

$ Income Fund – Share Class G Acc. £1012.92 ..... –

$ High Yield Fund – Share Class A Acc . $1008.01 ..... –

BNP Paribas Investment Partners (LUX)10, Harewood Avenue, London NW1 6AA

Investors Services (44) 020 7595 6762

FSA Recognised

BNP Paribas Insticash

BNP Paribas Insticash CHF F. SFr106.8525 ..... –

BNP Paribas Insticash EUR F. ∑116.2948 ..... –

BNP Paribas Insticash EUR Govnmnt F . ∑100.5848 ..... –

BNP Paribas Insticash GBP F £127.8821 ..... –

BNP Paribas Insticash USD F $117.0998 ..... –

BNP Paribas L1

BNPP L1 Abs Return Balanced F . ∑111.13 ..... –

BNPP L1 Abs Return Growth F . ∑115.98 ..... –

BNPP L1 Abs Return Stability F ∑113.53 ..... –

BNPP L1 Active Click Euro F . ∑98.64 ..... –

BNPP L1 Bd Asia ex–Japan F $128.65 ..... –

BNPP L1 Bd Best Selection Wrld Emerging F .. $203.44 ..... –

BNPP L1 Bd Currencies World F 5 ∑1329.7 ..... –

BNPP L1 Bd Euro High Yield F . ∑132.88 ..... –

BNPP L1 Bd Euro Long Term F.. 5 ∑538.78 ..... –

BNPP L1 Bd Euro Premium F ∑128.91 ..... –

BNPP L1 Bd Europe Emerging F 5 ∑507.03 ..... –

BNPP L1 Bd Europe Plus F.. 5 ∑337.59 ..... –

BNPP L1 Bd USD F ...... 5 $670.25 ..... –

BNPP L1 Bd World Emerging F.. 5 $869.7 ..... –

BNPP L1 Bd World Emerging Corporate F 5 ∑97.67 –1.97 –

BNPP L1 Bd World Emerging Local F .. $151.61 ..... –

BNPP L1 Bd World High Yield F ∑76.2 ..... –

BNPP L1 Conv Bond Best Selection Europe F . 5 ∑56.79 ..... –

BNPP L1 Conv Bond Euro Zone F .. 5 ∑104.2 ..... –

BNPP L1 Conv Bond World F. ∑119.22 ..... –

BNPP L1 Div World Conservative F.. ∑96.93 ..... –

BNPP L1 Div Active Click Balanced F .. ∑108.8 ..... –

BNPP L1 Div Active Click Stability F. ∑107.74 ..... –

BNPP L1 Div World Balanced F . 5 ∑156.58 ..... –

BNPP L1 Div World Growth F . 5 ∑150.08 ..... –

BNPP L1 Div World Stability F 5 ∑167.57 ..... –

BNPP L1 Dyn World F .. 5 ∑91.45 ..... –

BNPP L1 Eq Asia Emerging F $72.91 ..... –

BNPP L1 Eq Best Sel Asia ex–Japan F . ∑316.51 ..... –

BNPP L1 Eq Best Sel Euro F 5 ∑249.41 ..... –

BNPP L1 Eq Best Sel Europe F . ∑114.15 ..... –

BNPP L1 Eq Best Sel Europe ex–UK F.. ∑80.39 ..... –

BNPP L1 Eq Best Sel USA F 5 $258.81 ..... –

BNPP L1 Eq China F .... 5 $230.3 ..... –

BNPP L1 Eq Euro F ...... 5 ∑182.32 ..... –

BNPP L1 Eq Europe F .. 5 ∑324.68 ..... –

BNPP L1 Eq Europe Emerging F 5 ∑934.2 ..... –

BNPP L1 Eq Europe Growth F ∑24.95 ..... –

BNPP L1 Eq.Eur.Consumer Durables F 5 ∑92.27 ..... –

BNPP L1 Eq Eur.Consumer Goods F .. 5 ∑138.96 ..... –

BNPP L1 Eq Eur.Energy F. 5 ∑162.55 ..... –

BNPP L1 Eq Eur.Finance F.. 5 ∑35.99 ..... –

BNPP L1 Eq Eur.Health Care F .. 5 ∑103.06 ..... –

BNPP L1 Eq Eur.Industrials F . 5 ∑90.67 ..... –

BNPP L1 Eq Eur.Materials F 5 ∑141.46 ..... –

BNPP L1 Eq Eur.Technology F 5 ∑20.55 ..... –

BNPP L1 Eq Eur.Telecom F . 5 ∑88.95 ..... –

BNPP L1 Eq Eur.Utilities F 5 ∑125.2 ..... –

BNPP L1 Eq Germany F . ∑130.36 ..... –

BNPP L1 Eq High Div Pacific F . ∑47.49 ..... –

BNPP L1 Eq High Div USA F 5 $69.19 ..... –

BNPP L1 Eq High Div World F. 5 ∑43.03 ..... –

BNPP L1 Eq India F...... 5 $88.84 ..... –

BNPP L1 Eq Indonesia F $187.43 ..... –

BNPP L1 Eq Japan Small Caps F . Y4321.0 ..... –

BNPP L1 Eq Netherlands F . 5 ∑559.27 ..... –

BNPP L1 Eq Pacific ex–Japan F .. ∑120.07 ..... –

BNPP L1 Eq Russia F..... ∑79.97 ..... –

BNPP L1 Eq Turkey F .... ∑175.74 ..... –

BNPP L1 Eq USA F....... 5 $89.93 ..... –

BNPP L1 Eq USA Growth F.. 5 $137.47 ..... –

BNPP L1 Eq USA Small Caps F.. 5 $90.87 ..... –

BNPP L1 Eq World F .... 5 ∑140.57 ..... –

BNPP L1 Eq World Biotechnology F 5 ∑418.63 ..... –

BNPP L1 Eq World Con Durables F 5 ∑71.46 ..... –

BNPP L1 Eq World Cons Goods F .. 5 ∑365.9 ..... –

BNPP L1 Eq World Emerging F.. 5 $483.02 ..... –

BNPP L1 Eq World Energy F 5 ∑487.76 ..... –

BNPP L1 Eq World Finance F . 5 ∑169.97 ..... –

BNPP L1 Eq World Health Care F .. 5 ∑363.97 ..... –

BNPP L1 Eq World Industrials F ∑47.83 ..... –

BNPP L1 Eq World Materials F . ∑69.25 ..... –

BNPP L1 Eq World Min Var F . 5 ∑222.63 ..... –

BNPP L1 Eq World Technology F 5 ∑285.75 ..... –

BNPP L1 Eq World Telecom F 5 ∑374.9 ..... –

BNPP L1 Eq World Utilities F.. 5 ∑94.58 ..... –

BNPP L1 Flexible Active 20 F ∑90.42 ..... –

BNPP L1 Flexible Expertise Patr. F .. ∑87.61 ..... –

BNPP L1 Green Future F ∑54.26 ..... –

BNPP L1 Green Tigers F ∑111.26 ..... –


BNP Paribas Investment Partners - Contd.BNPP L1 OBAM Equity World F.. 2a ∑86.49 ..... –

BNPP L1 Opp.Euro Plus F ∑57.43 ..... –

BNPP L1 Opportunities USA F 5 $99.93 ..... –

BNPP L1 Opportunities World F . 5 ∑84.62 ..... –

BNPP L1 Real Est Securities Eur F .. ∑133.27 ..... –

BNPP L1 Real Est Securities Pac F . 2a ∑64.08 ..... –

BNPP L1 Real Est Securities Wrld F .. 5 ∑28.16 ..... –

BNPP L1 Sust Bond Euro F. ∑115.91 ..... –

BNPP L1 Sust Div Europe Balanced F. 5 ∑259.4 ..... –

BNPP L1 Sust Div Europe Growth F 5 ∑200.08 ..... –

BNPP L1 Sust Div Europe Stability F .. 5 ∑315.34 ..... –

BNPP L1 Sust Equity World F ∑23.73 ..... –

BNPP L1 V350 F............ ∑100.31 ..... –

BNPP L1 Wrld Commodities F.. $94.38 ..... –

BNPP L1 World Volatility F . ∑102.29 ..... –

BNPP L11 Bd World F.. 5 ∑289.93 ..... –

BNPP L1Conv Bond Asia F . ∑101.85 ..... –

BNPP L1Div World High Growth F . 5 ∑104.01 ..... –

Parvest

Abs.Ret.Return Eur LS F ∑98.99 ..... –

Abs.Ret.Wrld Curr 10 F.. ∑103.11 ..... –

Bond Euro ................... 5 ∑177.01 ..... –

Bond Euro Corporate ... 5 ∑139.58 ..... –

Bond Euro Government 5 ∑306.39 ..... –

Bond Euro Inflation–Ld 5 ∑118.46 ..... –

Bond Euro Medium Term . 5 ∑159.83 ..... –

Bond Euro Premium F . 5 ∑105.58 ..... –

Bond Euro Short Term. 5 ∑116.52 ..... –

Bond Europe ............... 5 ∑315.91 ..... –

Bond JPY .................... 5 Y21266 ..... –

Bond USA High Yield ... 5 $178.7 ..... –

Bond USD.................... 5 $447.21 ..... –

Bond World ................. 5 $47.67 ..... –

Bond World Corporate F 5 $126.51 ..... –

Bond World Emerging.. 5 $336.24 ..... –

Bond World Inflation–Ld ∑129.91 ..... –

Commod Arbitrage F ..... $105.0400 ..... –

Convertible Bond Asia . 5 $323.21 ..... –

Convertible Bond Europe.. 5 ∑118.47 ..... –

Convertible Bond Europe Small Cap ∑113.31 ..... –

Diversified Conservative 5 ∑128.12 ..... –

Diversified Dynamic .... 5 ∑179.54 ..... –

Diversified Euro Infl.Plus F . ∑98.94 ..... –

Enhanced Cash 6 Months F ∑107.41 ..... –

Enhanced Cash N8 Mths.. 5 ∑117.07 ..... –

Environmental Opp. C F . 5 ∑82.31 ..... –

Equity Australia ........... 5 A$558.09 ..... –

Equity Brazil .................. $123.26 ..... –

Equity BRIC ................... $118.61 ..... –

Equity Euro Small Cap F ∑77.37 ..... –

Equity Euro Small Cap . 5 ∑171.97 ..... –

Equity Europe LS30 F .. 5 ∑58.01 ..... –

Equity Europe Mid Cap 5 ∑341.69 ..... –

Equity Europe Value .... 5 ∑88.99 ..... –

Equity France .............. 5 ∑292.81 ..... –

Equity High Dividend Europe.. 5 ∑55.64 ..... –

Equity Japan ............... 5 Y2467 ..... –

Equity Japan Small Cap. 5 Y3264 ..... –

Equity Latin America ... 5 $662.7 ..... –

Equity Russia .............. 5 $63.63 ..... –

Equity South Korea F F 5 $79.75 ..... –

Equity Switzerland....... 5 SFr442.08 ..... –

Equity UK .................... 5 £110.97 ..... –

Equity USA .................. 5 $71 ..... –

Equity USA Mid Cap....... $103.14 ..... –

Equity USA Value......... 5 $68.93 ..... –

Equity World................ 5 $106.4 ..... –

Equity World Tech.Innovators. 5 $86.61 ..... –

Equity Wrld Next Generation F . ∑93.65 ..... –

Eqy Europe Converging . 5 ∑86.86 ..... –

Flexible Bond Europe Corp.. 5 ∑108.41 ..... –

Flexible Equity Europe F ∑93.13 ..... –

FundQuest Int.Alpha F ... ∑101.21 ..... –

Fundquest Int.Alpha Plus F. ∑99.85 ..... –

Fundquest Int.Em.Gl. F .. $246.67 ..... –

Fundquest Int.Euroland F. ∑51.07 ..... –

Fundquest Int.Europe F . ∑216.51 ..... –

Fundquest Int.Gl.Bd Opp. F $179.62 ..... –

Fundquest Int.Patrimoine F ∑96.24 ..... –

Fundquest Int.Strat.Balanced F ∑134.79 ..... –

Fundquest Int. USA F..... $68.31 ..... –

Global Environment F F.. 5 ∑83.92 ..... –

Multi Assets 4 F ............ ∑104.85 ..... –

Multi Assets 4 USD F..... $104.22 ..... –

Real Estate Securities Europe.. ∑53.56 ..... –

Short Term CHF........... 5 SFr307.871 ..... –

Short Term EURO ........ 5 ∑208.371 ..... –

Short Term USD .......... 5 $203.788 ..... –

Short Term Euro Premium F . ∑113.8741 ..... –

Short Term GBP F........ 5 £196.131 ..... –

Step 80 Wrld Emerging EUR F . ∑99.3 ..... –

Step 80 Wrld Emerging USD F . $88.81 ..... –

Step 90 EURO F............. ∑1153.04 ..... –

Sust. Bond Euro Corporate. ∑113.53 ..... –

Sustainable Equity Europe . ∑63.63 ..... –

Target Return + EURO F ∑105.38 ..... –

Target Return + USD... 5 $205.38 ..... –

Wrld Agriculture F ......... ∑102.06 ..... –

Wrld Agriculture USD F.. $83.71 ..... –

Parworld

ETF Flexible Allocation F ∑102.91 ..... –

Euro Negative Duration F. ∑99.44 ..... –

Quam 12 F .................... ∑98.27 ..... –

Quantitative Fixed Income F . ∑102.23 ..... –

Step 90 Commodities (EUR) F.. ∑110.82 ..... –

Step 90 US F ................. $98.46 ..... –

Track Continental Eur. F ∑57.52 ..... –

Track Emerging Markets F. $73.29 ..... –

Track Emerging Markets Bd F . $97.12 ..... –

Track EMU Gov.Bd F...... ∑103.25 ..... –

Track Euro Infl.Lkd Bd F ∑98.8 ..... –

Track Europe F.............. ∑78.37 ..... –

Track Japan F ............... ∑70.11 ..... –

Track North America F .. ∑78.76 ..... –

Track Pacific Ex Jap. F .. ∑113.26 ..... –

Track UK F .................... ∑67.78 ..... –

Track World F................ $81.66 ..... –

BNP ParibasOther International Funds

Campbell FME Large ...... $3146.7 ..... –

BNY Mellon Global Funds (IRL)160 Queen Victoria Street EC4V 4LA +44 (0) 131 305 3131

FSA Recognised

Asian Eqty A USD F .... 5 $2.752 ..... –

Brazil Eqty A USD F ..... 5 $1.0714 ..... –

Continental Eurp Eqty A EUR F . 5 ∑0.9261 ..... –

Emerging Mkts Debt A USD F 5 $1.614 ..... –

Emerging Mkts Debt C USD F 5 $1.6664 ..... –

Emerging Mkts Debt LC – A USD F 5 $1.187 ..... –

Emerging Mkts Debt LC – C USD F 5 $1.5128 ..... –

Euroland Bd A EUR F .. 5 ∑1.4789 ..... –

Euro Corporate Bond Fund A EUR F . ∑1.0723 ..... –

Euro Govt Bd Idx Tkr A EUR F. 5 ∑1.4163 ..... –

Evolution Currency Option A EUR F . ∑74.139 ..... –

Evolution Currency Option C EUR F 5 ∑80.247 ..... –

Evolution Global Alpha A EUR F . 5 ∑87.649 ..... –

Evolution Global Alpha C EUR F . 5 ∑95.681 ..... –

Global Bond A USD F .. 5 $2.2698 ..... –

Global Dynamic Bond Fund C USD F ..... –

Global Eqty A USD F ... 5 $1.2393 ..... –

Global Equity Higher Income B USD F .. $1.0342 ..... –

Global Emerg Mkts Eqty Value A USD F .. 5 $2.8768 ..... –

Global High Yield Bond A EUR F. 5 ∑1.2962 ..... –

Global Intrepid A USD F 5 $1.4648 ..... –

Global Property Securities A EUR F 5 ∑0.8586 ..... –

Global Real Return (EUR) A EUR F ∑1.0514 ..... –

Global Real Return (USD) A USD F $1.1452 ..... –

Japan Eqty Value A JPY F. 5 Y4204.579 ..... –

Latin America Infrastructure Fund B USD F $0.8378 ..... –

Long–Term Global Eqty A EUR F 5 ∑1.0347 ..... –

Pan Eurp Eqty A EUR F . 5 ∑0.8817 ..... –

Small Cap Euroland A EUR F . 5 ∑1.8103 ..... –

Sterling Bond A GBP F 5 £1.6363 ..... –

S&P 500 Idx Tkr A USD F . 5 $1.0099 ..... –

UK Eqty A GBP F......... 5 £1.2954 ..... –

US Dynamic Value A USD F 5 $1.2132 ..... –

US Eqty A USD F.......... 5 $0.8734 ..... –

Vietnam, India and China (VIC) Fund F 5 $0.9267 ..... –

Emerging Markets Equity Fund F. $1.4421 ..... –


Bank of America Cap Mgmt (Ireland) Ltd (IRL)Regulated

Global Liquidity USD....... $1.00 ..... 0.27

Global Liquidity EUR ....... ∑1.00 ..... 1.02

Banque Safdie SA (CYM)Tel : (+41) 22 817 88 33


Safdie Latam Fd EUR...... ∑13494.62 ..... –

Safdie Latam Fd USD ..... $15981.65 ..... –

Barclays Investment Funds (CI) Ltd (JER)39/41 Broad Street, St Helier, Jersey, JE2 3RR, Channel Islands 01534 812800

FSA Recognised

Bond Funds

Sterling Bond F ........ 3a C £0.4251O 0.4251 –0.0018 4.7

Baring International Fd Mgrs (Ireland) (IRL)Northern Trust, George Court 54–62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004

FSA Recognised

ASEAN Frontiers A GBP Inc . 5 £90.28 94.79 –2.47 –

Asia Growth A GBP Inc H.. 5 £31.99 33.59 –0.62 0.06

Australia A GBP Inc...... 5 £65.05 68.30 +0.61 –

Dynamic Emerging Markets Fund – Class A GBP Acc F ..... –

Eastern Europe A GBP Inc 5 £54.04 56.74 +1.02 –

Emerging Mkt Debt LC A GBP Hedged Inc . £10.83 11.37 ..... –

Emerging Opportunities A GBP Inc H . 5 £18.38 19.30 +0.06 1.34

Europa A USD Inc Sep 26 H 5 $33.13 34.79 +1.71 0.28

Glb Aggregate Bond A USD Inc H .. 5 $11.26 11.82 +0.01 4.15

Glb Emerging Markets A GBP Inc H 5 £18.37 19.29 +0.06 0.13

Glb Select A GBP Inc Sep 26 H.. 5 £7.35 7.72 +0.11 0.06

Glb Resources A GBP Inc H. 5 £15.02 15.77 –0.08 –

High Yield Bond A GBP Hedged Inc H . 5 £6.50 6.82 –0.03 4.43

Hong Kong China A GBP Inc 5 £450.20 472.71 –4.28 –

International Bond A GBP Inc Sep 26 F... 5 £18.19 19.10 –0.03 2.70

Latin America A USD Inc Sep 26 H 5 $41.94 44.04 +1.75 0.39

MENA A GBP Inc F....... 5 £8.7 9.14 ..... –

North America A GBP Inc F . 5 £37.47 39.34 +0.77 –

Baring International Fd Mgrs (Ireland) (IRL)Regulated

China A–Share A GBP Inc . £5.71 6.00 –0.01 –

Barings (Luxembourg) (LUX)FSA recognised

Russia Fund Class A GBP Inc F £34.05 ..... –

Bedlam Funds Plc (IRL)20 Abchurch Lane, London, EC4N 7BB

Dealing: 00 3531 542 2907 Enquiries: 00 4420 7648 4300

www.ft.com/funds/bedlam

FSA Recognised

Bedlam Global A.......... 0 £154.4400 ..... –

Bedlam Global B............ £160.3700 ..... –

Bedlam Emerging Markets A . 0 £202.3500 ..... –

Bedlam Emerging Markets B £202.0900 ..... –

Bedlam Europe A........... £108.7600 ..... –

Bedlam Europe B .......... £113.3000 ..... –

Bedlam Japan A............ £81.2700 (z) –

Bedlam Japan B............ £80.2600 (z) –

Bedlam UK A ............... 0 £121.1800 ..... –

Bedlam UK B................. £124.0700 ..... –

Bedlam Global Income Fund.. 0 £78.5400 ..... –

Blackmore Capital Management Limited (GSY)Regulated

Branded Comm Opps Fd Class A . £1.0000 ..... –

Branded Comm Opps Fd Class B . £1.1641 ..... –

Branded Comm Opps Fd Class C . £1.1767 ..... –

BlackRock (IOM)3rd Floor, Atlantic House, Circular Road, Douglas, Isle of Man 01624 671128

FSA Recognised

BLK Offshore Bal Pfolio 5 148.3 156.8 +1.80 2.1

BLK Intl Bond .............. 5 47.65 50.22 –0.16 2.4

BlackRock (JER)Regulated

BlackRock UK Property Aug 31 . £34.4057 ..... 0.20

BLK Intl Gold & General .. $11.37 11.98 ..... –

Blairmore Holdings IncOther International Funds

Smith & Williamson Investment Management

Administrators – S G Hambros Bank & Trust (Bahamas) Limited

NAV Sep 16.................... $11.0707 ..... 0.23

Blakeney Management Ltd (LUX)Regulated

Blakeney Investors ......... $26.34 ..... –

Blakeney Investors–S08/08 $7.43 ..... –







BlueBay Asset Management Ltd (LUX)Regulated

BlueBay Emerging Market Bond Sep 23 $237.28 ..... –

BlueBay Emerging Market Select Bond . $142.30 ..... –

BlueBay Global Convertible Bond I $150.84 ..... –

BlueBay High Yield Bond ∑249.09 ..... –

BlueBay Investment Grade Bond .. ∑135.83 ..... –

BlueBay Emg Mkt Loc Curr Bd.. $156.18 ..... –

BlueBay Emg Mkt Sel Bd $112.26 ..... –

BlueBay Asset Management Ltd (CYM)Regulated

BlueBay Multi–Strategy Fund. $124.68 ..... –

BlueBay Multi–Strategy PLUS Fund.. $128.52 ..... –

BlueBay Value Recovery Fund (EUR) Feb 28 ∑87.85 ..... –

Bonfield Asset Management LimitedOther International Funds

The Longbow New Europe Fund Sep 21 $54.68 ..... –

BONHOTEOther International Funds

Bonhôte–Arbitrage (EUR) ∑7371.0 –168.0 –

Bonhôte–Performance (EUR) . ∑9303.0 –122.0 –

Boyer Allan Investment Mgmt LLP (CYM)Regulated

Boyer Allan EMEA Fd Ltd Unrestricted EUR Acc NAV (Final) ∑102.9384 ..... –

Boyer Allan EMEA Fd Ltd Unrestricted US$ Acc NAV (Final) $102.4268 ..... –

Boyer Allan Global Emerging Markets Fund Inc USD (Est) Sep 16 $105.19 ..... –

Boyer Allan Greater China Inc A1 (Est) Sep 16 .. $186.94 ..... –

Boyer Allan Pacific Inc A2 (Est) Sep 16 . $668.70 ..... –

Boyer Allan Pacific Opportunities A1 USD Inc NAV (Est) Sep 16 $266.43 ..... –

Braemar Group PCC Limited (GSY)Regulated

Ground Rents Class A..... £1.0483 ..... –

Ground Rents Class B..... £0.9945 ..... –

UK Agricultural Class A... £0.9811 ..... –

UK Agricultural Class B... £1.0438 ..... –

Student Accom Class A .. £1.4065 ..... –

Student Accom Class B .. £1.0870 ..... –

CP Global Asset Mgmnt P/ Ltd. (CYM)186A, Telok Ayer Street, Singapore 068632, Tel 65 6222 5366

Regulated

CP Multi–Strategy Currency Fund (USD) $102.6 ..... 63.79

CACEIS Fastnet (Suisse) SATel: +41 22 360 94 00 www.caceis.ch


Dynamic Ratchet Bond Fund–Japan. Y4592.0 –5.0 –


Capita Financial Managers (Ireland) Limited (IRL)1 Adelaide Court, Adelaide Road, Dublin 2, Ireland +353 1 400 5300

Regulated

CF Heartwood Multi Asset B Acc Nav £1.1567 ..... –

Capital International funds services (LUX)6, route de Trèves, L–2633 Senningerberg, Luxembourg

Capital International is part of

The Capital Group Companies

www.capitalinternationalfunds.com

FSA Recognised

Growth Funds

Cap Int All Ctry Eq B ...... SFr13.03 ..... 0.1149

Cap Int All Ctry Eq B ...... ∑10.69 ..... 0.1149

Cap Int All Ctry Eq B ...... $14.38 ..... 0.1149

Cap Int All Ctry Eq BD.... £9.26 ..... 0.123

Cap Int Emerg Asia Eq B SFr6.94 ..... –

Cap Int Emerg Asia Eq B ∑5.69 ..... –

Cap Int Emerg Asia Eq B $7.69 ..... –

Cap Int Emerg Asia Eq Bd £4.98 ..... –

Cap Int Global Equity B .. $13.53 ..... 0.2709

Cap Int Global Equity BD £8.49 ..... 0.2566

Cap Int Global Equity B .. SFr12.26 ..... 0.2709

Cap Int Global Equity B .. ∑10.06 ..... 0.2709

Cap Int European Eq BD £6.73 ..... 1.6176

Cap Int European Eq B... ∑8.29 ..... 1.5485

Cap Int European Eq B... SFr10.11 ..... 1.5485

Cap Int European Eq B... $11.15 ..... 1.5485

Cap Int Japan Equity B .. ∑6 ..... –

Cap Int Japan Equity B .. $8.07 ..... –

Cap Int Japan Equity B .. SFr7.31 ..... –

Cap Int Japan Equity BD £5.18 ..... –

Cap Int AsiaP ex Jp Eq B.. SFr12.15 ..... 0.3402

Cap Int AsiaP ex Jp Eq B.. ∑9.96 ..... 0.3402

Cap Int AsiaP ex Jp Eq B.. $13.4 ..... 0.3402

Cap Int Asia Pex Jp Eq BD.. £8.3 ..... 0.3658

Cap Int Em Mkts Fund BD £49.26 ..... 0.4331

Cap Int Em Mkts Fund B SFr70.9 ..... 0.3545

Cap Int Em Mkts Fund B ∑58.09 ..... 0.3545

Cap Int Em Mkts Fund B $78.52 ..... 0.3545

Growth and Income Funds

Cap Int Glb Growth Inc BD.. £7.76 ..... 0.8307

Cap Int Glb Growth Inc B.. ∑9.31 ..... 0.8142

Cap Int Glb Growth Inc B.. SFr11.35 ..... 0.8142

Cap Int Glb Growth Inc B.. $12.52 ..... 0.8142

Cap Int Eur Growth Inc B . ∑12.72 ..... 2.3405

Cap Int Eur Growth Inc B . SFr15.5 ..... 2.3405

Cap Int Eur Growth Inc B . $17.1 ..... 2.3405

Cap Int Eur Growth Inc BD . £10.42 ..... 2.3389

Cap Int US Growth Inc B ∑10.26 ..... 0.1511

Cap Int US Growth Inc B SFr12.5 ..... 0.1511

Cap Int US Growth Inc B $13.79 ..... 0.1511

Cap Int US Growth Inc BD £8.83 ..... 0.1404

CIUKF UK Corp.Bond Bd £9.73 ..... 4.2237

Objective Based Funds

Cap Int Em Mk Tot Opp B SFr9.58 ..... 2.5578

Cap Int Em Mk Tot Opp B ∑7.85 ..... 2.5578

Cap Int Em Mk Tot Opp B $10.62 ..... 2.5578

Cap Int Em Mk Tot Opp Bd. £6.78 ..... 0.6

Cap Int Gbl Abs Inc Grow B $9.18 ..... 4.51

Income Funds

Cap Int Em Mkts Debt B SFr11.03 ..... 3.9442

Cap Int Em Mkts Debt B ∑9.04 ..... 3.9442

Cap Int Em Mkts Debt B $12.22 ..... 3.9442

Cap Int Em Mkts Debt Bd. £7.71 ..... 29.99

Cap Int Em Mk LocCur Dbt B $9.93 ..... –

Cap Int Em Mk US$ Debt B $9.43 ..... 4.55

Cap Int Euro Bond B ...... SFr15.83 ..... 1.5078

Cap Int Euro Bond B ...... £9.28 ..... 1.5231

Cap Int Euro Bond B ...... $17.46 ..... 1.5078

Cap Int Euro Bond BD.... ∑12.99 ..... 1.5078

Cap Int Glb H Inc Opp B . SFr25.76 ..... 5.4033

Cap Int Glb H Inc Opp B . ∑21.13 ..... 5.4033

Cap Int Glb H Inc Opp B . $28.41 ..... 5.4033

Cap Int Glb H Inc Opp BD. £12.38 ..... 5.3854

Cap Int Global Bond B.... SFr17.62 ..... 1.1587

Cap Int Global Bond B.... ∑14.46 ..... 1.1587

Cap Int Global Bond B.... $19.44 ..... 1.1587

Cap Int Global Bond BD . £10.6 ..... 1.0254

Cedar Rock Capital Limited (IRL)Regulated

Cedar Rock Capital Fd Plc ..... –



The Charlemagne Fund (CYM)Regulated

NAV EUR (Est) Sep 9....... ∑216.06 ..... –

NAV USD (Est) Sep 9....... $214.83 ..... –

Charlemagne Capital (IOM) LtdOther International Funds

OCCO Eastern European Sep 16 $314.86 ..... 0.54

Charlemagne New Frontiers R Sep 21 .. $13.29 ..... –

Magna Umbrella Fund PLC

Magna Africa A............... ∑7.170 ..... –

Magna Africa B .............. £7.655 ..... –

Magna Africa C .............. ∑8.232 ..... –

Magna Africa R .............. ∑7.780 ..... –

Magna Eastern European A. ∑21.331 ..... –

Magna Eastern European C. ∑31.259 ..... –

Magna Eastern European R. ∑6.837 ..... –

Magna Emerging Mkts Div Fd N Acc ∑9.261 ..... –

Magna Emerging Mkts Div Fd R Acc. ∑9.070 ..... –

Magna Emerging Mkts Div Fd N Dist ∑9.048 ..... –

Magna Emerging Mkts Div Fd R Dist ∑8.995 ..... –

Magna Global Emerging Markets A .. ∑16.430 ..... –

Magna Global Emerging Markets B .. £10.277 ..... –

Magna Global Emerging Markets C .. ∑17.142 ..... –

Magna Global Emerging Markets R .. ∑6.999 ..... –

Magna Latin American A ∑26.389 ..... –

Magna Latin American C ∑27.908 ..... –

Magna Latin American R ∑8.472 ..... –

Magna Mena R............... ∑10.16 ..... –

Magna New Frontiers R.. ∑7.565 ..... –

Magna Russia A ............. ∑24.303 ..... –

Magna Russia C ............. ∑24.649 ..... –

Magna Turkey A ............. ∑17.188 ..... –

Magna Turkey B............. £12.365 ..... –

Magna Turkey C............. ∑17.320 ..... –

Magna Turkey R............. ∑7.948 ..... –

Magna Undervalued Ass Fd N ∑7.989 ..... –

Magna Undervalued Ass Fd R ∑7.966 ..... –

Charles Schwab Worldwide Funds Plc (IRL)Regulated

Schwab USD Liquid Assets Fd .. $1.00 ..... 0.01

Chartered Asset Management PTE LtdOther International Funds

CAM–GTF Limited Sep 16. $342350.27 342350.27 ..... –

CAM GTi Limited Mar 31 $1345.780 ..... –

Raffles–Asia Investment Company Aug 31 . $2.46 ..... –

Cheyne Capital Management (UK) LLP (IRL)[email protected]

Regulated

Cheyne Convertibles Absolute Return Fund. ∑1119.4234 –4.6236 –

Cheyne Convertibles Absolute Return Fund. $1114.3591 –4.6764 –

Cheyne Convertibles Absolute Return Fund. £1091.6829 –4.4816 –

Cheyne Capital Management (UK) LLPOther International Funds

Cheyne European Event Driven Fund (Final) ∑125.8132 ..... –

Cheyne Real Estate Debt Fund Class B . £147.974 ..... –

Cheyne Long/Short Credit Fund (Final) . $146.5074 ..... –

Cheyne Total Return Credit Fund Class K (Final) $142.8502 ..... –

Church House Inv (Bahamas) LtdSG Hambros Bank & Trust (Bahamas) Ltd – Administrator


CH Deep Value ............... £267.999 270.684 ..... –


City Financial Asian Absolute Growth Fund (CYM)Regulated

Asian Absolute Growth Class A . $105.5587 ..... –

City of London Inv Mgmt Co Ltd (IRL)2nd Floor, Guild House, Guild Street, Dublin 1 00 353 1 448 5033

www.ft.com/funds/cityoflondon

FSA Recognised

The Em.Mkt Value & Growth GBP–Inst £10.56 –0.31 –

The Em.Mkt Value & Growth GBP–Ret. £10.44 –0.31 –

The Emerging World USD – Retail A $55.42 –0.05 –

The Emerging World USD – Instl 0 $58.4 –0.05 –

The Natural Resources USD Retail A F 0 $7.54 –0.18 –

The Natural Resources USD – Instl 0 $7.69 –0.18 –

CMI Asset Mgmt (Luxembourg) SA (LUX)23 route d'Arlon, L–8010 Strassen Lux 00 352 3178311

FSA Recognised

CMI Global Network Fund (u)

Regional Equity Sub Funds

CMI Continental Euro Equity . ∑17.4810 +0.76 1.674

CMI Pacific Basin Enhanced Equity . $35.4680 –0.875 1.808

Single Country Equity Sub Funds

CMI German Equity F... 2 ∑36.4840 +1.757 1.387

CMI Japan Enhanced Equity F 2 Y2114.6620 –48.333 1.054

CMI UK Equity ............... £9.524 +0.245 2.011

CMI US Enhanced Equity F . 2 $42.6160 +0.265 0.647

Index Tracking Sub Funds

Euro Equity Index Tracking. ∑12.366 +0.853 3.601

Japan Index Tracking .... Y397.8950 –8.21 1.299

UK Eqty Index Tracking.. £11.8610 +0.329 2.745

US Eqty Index Tracking 2 $32.0690 +0.197 0.875

Managed Sub Funds

Global Bond................... £1.6990 –0.013 1.531

Global Network Mgd Global Mxd . £1.7390 +0.007 0.925

Global Equity ................. £1.6470 +0.014 0.604

Bond Sub Funds

CMI Euro Bond F ......... 2 ∑41.8490 –0.135 3.278

CMI Japanese Bond ...... Y1701.6560 +0.506 0.465

CMI UK Bond................. £7.8870 –0.047 2.625

CMI US Bond................. $13.9820 –0.084 1.967

Currency Reserve Sub Funds

CMI Euro Currency Reserve ∑25.6140 ..... 0.267

CMI Stlg Currency Reserve £5.0010 ..... 0.653

CMI US Dllr Currency Reserve . $9.9330 –0.001 0.872

CMI Access 80% Gu F 8a ∑5.6280 +0.042 –

CMI Fund Managers (IoM) (IOM)Clerical Medical Hse, Victoria Road, Douglas, IoM IM99 1LT 01624 625599

FSA Recognised

High Income................ 5 £0.4808 0.5123 –0.0035 4.79

Sterling Roll Up ........... 5 £2.7762 2.9578 +0.1052 0

Maximum Permitted Charge 8.5%

Close International Asset Mgt Ltd (JER)Regulated

Kleinwort Benson International Equity Growth .. £12.6500 ..... 0.4

Kleinwort Benson Global Funds Limited

Sterling Currency ........... £54.0400 ..... –

Euro Currency ................ ∑33.6100 ..... –

US Dollar Currency ......... $59.3400 ..... –

Sterling Income Bond ..... £4.3400 ..... 2.76

Euro Income Bond.......... ∑11.2000 ..... 2.5

International Bond .......... £72.5700 ..... –

Bond & Equity ................ £4.4000 ..... 4.55

International Equity ........ £49.4400 ..... –

All Weather Sterling........ £1.2405 ..... –

All Weather Euro ............ ∑1.1084 ..... –

All Weather US Dollar ..... $1.1305 ..... –

Sterling Conservative Strategy.. £10.4100 ..... –

Euro Conservative Strategy . ∑10.0700 ..... –

US Dollar Conservative Strategy $10.1100 ..... –

Sterling Dynamic Strategy £11.0600 ..... –

Euro Dynamic Strategy... ∑9.0800 ..... –

US Dollar Dynamic Strategy $9.9300 ..... –

Sterling Progressive Strategy. £11.3900 ..... –

Euro Progressive Strategy ∑9.4600 ..... –

US Dollar Progressive Strategy . $10.1000 ..... –

Trojan ............................ £10.8500 ..... –

Cohen & Steers SICAV (LUX)Regulated

Asia Pacific Real Estate Securities $5.8239 ..... –

AsiaPac.RealEst.Sec. IX .. $6.2729 ..... –

European Real Estate Securities ∑11.2882 ..... –

Europ.RealEstate Sec. IX ∑13.6489 ..... –

Gbl RealEstate Sec. I ...... $7.287 ..... –

Gbl RealEstate Sec. IX .... $8.0337 ..... –

Collins Stewart Investment Funds plc (IRL)www.ft.com/funds/collinsstewartgroup

FSA Recognised

CS Alternative Strategies A . 5 £0.9444 –0.0026 –

CS Total Return Bond .. 5 £84.0394 –0.0705 –

CS Select Opportunity . 5 £1.2620 –0.0148 –

CS Select Global Opportunity . 5 $1.2522 –0.0147 –

CS Select Affinity B ..... 5 £1.1116 –0.0146 –

CS Select Global Affinity B 5 $0.9923 –0.0157 –

CS Select Diversity B... 5 £1.1073 –0.0127 –

CS Select Global Diversity B 5 $1.0434 –0.0138 –

CS Select Income B..... 5 £1.0275 –0.0078 –

Comgest SA (LUX)17 square Edouard VII – 75009 Paris www.comgest.com

funds.ft.com/funds/Comgest/ComgestSALux

FSA Recognised

Comgest Asia F ........... 5 $3184.36 ..... –

Comgest Europe F....... 5 SFr3298.39 ..... –

Comgest Far East Limited (LUX)funds.ft.com/funds/Comgest/ComgestFarEastLtd

Regulated

Comgest Panda.............. $2163.09 ..... –

Comgest Far East Limited (KYG)Other International Funds

C.F.E. ONYX FUND.......... $40.8517 ..... –

Comgest SA (FRA)17 square Edouard VII – 75009 Paris

funds.ft.com/funds/Comgest/ComgestSAFrance

FSA Recognised

Comgest Magellan ........ ∑1373.2 ..... –

Comgest AM International Ltd (IRL)46 St Stephen's Green, Dublin 2, Ireland

funds.ft.com/funds/Comgest/ComgestAMInternationalLtd

FSA Recognised

Comgest Gth Asia ex Jap DIS F . 5 $11.7 ..... –

Comgest Gth Emerging Mkt DIS F . 5 $25.86 ..... –

Comgest Gth Europe DIS F . 5 ∑10.14 ..... –

Comgest Gth GEM PC DIS F 5 ∑9.31 ..... –

Concord Misr Inv (Guernsey) Ltd (GSY)Regulated

Egyptian Growth Sep 25. $10.06 10.20 ..... –

Coupland Cardiff Funds Plc (IRL)31/32 St James's Street, London, SW1A 1HD

FSA Recognised

CC Asia Alpha Fd – Cls A Euro . 5 E ∑12.188 ..... –

CC Asia Alpha Fd – Cls B USD.. 5 E $11.771 ..... –

CC Asia Alpha Fd – Cls C GBP.. 5 E £11.692 ..... –

CC Japan Alpha Fd – Cls A Euro 5 E ∑4.342 ..... –

CC Japan Alpha Fd – Cls B GBP 5 E £4.67 ..... –

CC Japan Alpha Fd – Cls C JPY . 5 Y443.627 ..... –

CC Asian Evolution Fd. Cls A USD . 5 $10.917 (z) –

CC Asian Evolution Fd. Cls B GBP.. 5 £10.228 (z) –

CC Asian Evolution Fund – Cls C USD Acc 5 $11.526 (z) –


Coutts (IRL)RBS Asset Management (Dublin) Limited

Guild Hse, P.O. Box 4935 Guild St IFSC Dublin 1 00 353 1 642 8400

FSA Recognised

Coutts Investment Programmes

Cont EUR Spec Equity Ser 1 F.. ∑65.34 –1.50 0.00



US Specialist Equity Ser 1 F.. $16.91 +0.09 0.00



UK Equity Index Programme Ser 1 F £19.97 +0.07 2.45

UK Equity Index Programme Ser 2 F £20.24 +0.07 2.88

UK Equity Index Programme Ser 5 F .. 0 £20.42 +0.07 3.14

UK Specialist Eqty Pro Ser 1 F . £13.89 –0.16 0.19



US Equity Index Programme Ser 1 F $38.79 +0.24 0.58

US Equity Index Programme Ser 2 F $39.55 +0.24 0.96

US Equity Index Programme Ser 5 F .. 0 $39.69 +0.25 1.20

Contl Eurp Eqty Index Prog Ser 1 F . ∑216.15 +1.17 2.05

Contl Eurp Eqty Index Prog Ser 2 F . ∑220.65 +1.19 2.44

Contl Eurp Eqty Index Prog Ser 5 F 0 ∑221.28 +1.20 2.73

US Sovereign Bond Index Prog Ser 1 F. $24.53 –0.11 2.13

US Sovereign Bond Index Prog Ser 2 F. 2a $24.62 –0.11 2.31

US Sovereign Bond Index Prog Ser 5 F. $24.94 –0.12 2.56

Continental Eurp Sovereign Bond Index Prog Ser 1 F ∑116.65 –0.05 3.32

Continental Eurp Sovereign Bond Index Prog Ser 2 F ∑117.10 –0.05 3.47

Japan Specialist Equity Programme Series 1 F. Y2927.00 –22.00 0.00

Japan Specialist Equity Programme Series 2 F. Y3142.00 –23.00 0.70

Japan Specialist Equity Programme Series 5 F 0 Y3152.00 –23.00 0.98

Swiss Equity Pro Ser 1 F.. SFr178.61 –0.09 0.38

Swiss Equity Pro Ser 2 F.. SFr182.61 –0.09 0.63

Swiss Equity Pro Ser 5 F 0 SFr182.96 –0.09 0.94

Pac Basin Eqty Pro Ser 1 F. $40.98 –1.16 1.11

Pac Basin Eqty Pro Ser 2 F. $41.98 –1.19 1.41

Pac Basin Eqty Pro Ser 5 F . 0 $42.25 –1.20 1.67

UK Sovereign Bond Index Prog Ser 1 F. £14.01 ..... 3.34

UK Sovereign Bond Index Prog Ser 2 F. £14.06 ..... 3.51

UK Sovereign Bond Index Prog Ser 5 F... 0 £14.17 –0.01 3.77

Swiss Franc Pro Ser 1 F SFr103.97 –0.03 1.69

Swiss Franc Pro Ser 2 F SFr105.18 –0.03 1.81

Coutts Equator Emerging Markets 1 F . $28.42 –0.37 0.92



Global Investment Grade Programme USD S1 F $108.11 –0.21 3.27

Global Investment Grade Programme EUR S1 F ∑106.36 –0.22 3.27

Global Investment Grade Programme GBP S1 F £111.89 –0.24 3.27

Global Investment Grade Programme CHF S1 F SFr99.60 –0.24 3.27

Global Investment Grade Programme USD S2 F $109.14 –0.22 3.38

Global Investment Grade Programme EUR S2 F ∑107.63 –0.21 3.38


Global Investment Grade Programme CHF S2 F SFr100.20 –0.23 3.38


UK Specialist Equity Income Ser 1 F £7.38 –0.09 2.90



Absolute Rtn Multi Asset Prog Ser 1 GBP F £9.74 ..... 0.00

Absolute Rtn Multi Asset Prog SER 2 GBP F £9.80 ..... 0.00

Absolute Rtn Multi Asset Prog SER 2 USD F $9.78 ..... 0.00

Absolute Rtn Multi Asset Prog SER 1 CHF F ..... –

Absolute Rtn Multi Asset Prog SER 2 EUR F ∑9.81 ..... 0.00




Absolute Rtn Multi Asset Prog SER 5 EUR F ∑9.91 ..... 0.00





Absolute Rtn Mutli Asset Prog Ser 9 EUR F ∑9.65 ..... 0.00

* 30 day average yield

Coutts (IRL)Regulated

Coutts Liquidity Fund Plc

Dollar Ser 1.................... $1.00 (z) 0.00

Dollar Ser 3.................... $68.93 (z) 0.00

Dollar Ser 4.................... $67.37 (z) 0.00

Dollar Ser 5.................... $1.00 (z) 0.07

Sterling Ser 1 ................. £1.00 (z) 0.33

Sterling Ser 3 ................. £60.04 (z) 0.33

Sterling Ser 4 ................. £58.59 (z) 0.23

Sterling Ser 5 ................. £1.00 (z) 0.48

Euro Ser 1...................... ∑1.00 (z) 0.54

Euro Ser 3...................... ∑73.50 (z) 0.54

Euro Ser 4...................... ∑71.74 (z) 0.44

Euro Ser 5...................... ∑1.00 (z) 0.69

CQS Cayman LP (CYM)Regulated

Conv & Quantitative Fund (Final) .. $2689.64 ..... –

Directional Opportunities (Final) $3003.88 ..... –

ABS Fund (Final)............. $4071.35 ..... –

Diversified Fund (Final)... $1445.93 ..... –

Asia Fund (Final)............. $1188.16 ..... –

Credit Long Short Fund (Final) $1162.88 ..... –

Credit Suisse Fund Services (Luxembourg) S.A (LUX)Regulated

CS Bond Fund (Lux) Brazil B $131.71 ..... –

CSF (Lux) Bond Short Maturity EUR B ∑101.65 ..... –

CSF (Lux) Bond Short Maturity USD B .. $102.12 ..... –

CS BF (L) IL (Euro) B ....... ∑118.5 ..... –

CS BF (L) IL (Sfr) B.......... SFr111.75 ..... –

CS BF (L) IL (US$) B........ $132.25 ..... –

CS BF (L) Sfr B ............... SFr505.25 ..... –

CS BF (L) Sfr A ............... SFr283.14 ..... –

CS BF (L) TOPS (Sfr) B .... SFr107.41 ..... –

CS Fund (L) Relative Returned Engineered (Euro) B ∑121.88 ..... –

CS Fund (Lux) Relative Return Engineered (Sfr) B SFr114.26 ..... –

CS Fund (L) Total Return Engineered (Euro) B .. ∑94.99 ..... –

CS Equity Fund (Lux) Brazil B. $7.21 ..... –

CS Equity Lux Global Security B USD Acc NAV.. $10.32 ..... –

CS EF (Lux) Global Value B ∑6.37 ..... –

CS Equity Fund (Lux) Global Value R CHF .. SFr8.74 ..... –

CS Equity Fund (Lux) Global Value R USD .. $9.25 ..... –

CS EF (Lux) Small and Mid Cap Germany B. ∑886.41 ..... –

CS EF (Lux) Small and Mid Cap Europe B .. ∑1130.87 ..... –

CS EF (L) Sm C USA B .... $3424.45 (z) –

CS EF (L) USA B.............. $591.02 ..... –

CS Fund (Lux) Global Responsible Equities B ... ∑121.47 ..... –

CS SICAV One (Lux) Eq Asian Dragon B . $9.07 ..... –

CS SICAV One (Lux) Eq Gl Emerging Markets B . $8.52 ..... –

CS SICAV One (Lux) Eq Gl EM Property B .. $6.18 ..... –

CS SICAV One (Lux) Euro Eq Div Plus B . ∑9.45 ..... –

CS SICAV One (Lux) Gl Eq Div Plus B $9.31 ..... –

CS Systematic Alpha (Lux) Equity Japan B . Y5840 (z) –

CS PF (L) Bal (Sfr) B........ SFr146.65 ..... –

CS PF (L) Bal (Euro) B ..... ∑121.57 ..... –

CS PF (L) Growth (Euro) .. ∑104.86 ..... –

CS PF (L) Growth (Sfr)..... SFr131.67 ..... –

CS PF (L) Income (Sfr) B . SFr145.46 ..... –

CS PF (L) Income (Euro) B. ∑135.66 ..... –

CS SICAV One (Lux) Challenger (Euro) B ∑88.1 ..... –

CS SICAV One (Lux) Defender (Sfr) B SFr91.23 ..... –

CS SICAV One (Lux) Defender (Euro) B.. ∑98.27 ..... –

responsAbility Global Microfinance Fund B H CHF SFr115.95 ..... –

CS Solutions (Lux) Megatrends B . $83.92 ..... –

CS Solutions (Lux) Prima Multi–Strategy B EUR. ∑100.18 ..... –

CS SICAV One (Lux) Equity Japan Value B .. Y884 ..... –

CSF (Lux) Fixed Income Cycle Invest B . ∑94.48 ..... –

Markets | Managed funds service

SEPTEMBER 27 2011 Section:Stats Time: 26/9/2011 - 19:30 User: brennanb Page Name: UT4 EUR, Part,Page,Edition: EUR, 20, 1



Crèdit Andorrà Asset Management (LUX)www.creditandorra.com

FSA Recognised

Crediinvest SICAV Money Market Eur I . ∑11.1687 ..... –

Crediinvest SICAV Money Market Usd A $10.0173 ..... –

Crediinvest SICAV Fixed Income Eur ∑10.1073 ..... –

Crediinvest SICAV Fixed Income Usd $10.3363 ..... –

Crediinvest SICAV Spanish Value. ∑188.8123 ..... –

Crediinvest SICAV International Value .. ∑141.6924 ..... –

Crediinvest SICAV Big Cap Value . ∑12.3678 ..... –

Crediinvest SICAV US Multistrategy . $10.6580 ..... –

Crediinvest SICAV Sustainability.. ∑10.2739 ..... –

Daiwa Europe Fund Mgrs Ireland Ltd (IRL)Regulated

Monthly Dividend High Yield $6.59 –0.05 –

Daiwa Gaika MMF

AU$ Portfolio .................. A$0.01 ..... –

US$ Portfolio .................. $0.01 ..... –

Euro Portfolio ................. ∑0.01 ..... –

Canadian Dllr Pfolio ........ C$0.01 ..... –

New Zealand Dllr Pfolio .. NZ$0.01 ..... –

Daiwa Bond Series

Monthly Dividend AUD Bd A$10.140000 ..... –

Monthly Dividend EUR Bd . ∑9.650000 ..... –

Monthly Dividend CAD Bd. C$10.470000 ..... –

Mthly Div US Preferred Secs.. $6.720000 ..... –

Daiwa Equity Fund Series

New Major Economies.... $11.220000 ..... –

Global CB ....................... $9.280000 ..... –

Dantrust Management (Guernsey) Ltd (GSY)Regulated

Dantrust II Limited.......... DKr299.00 301.20 ..... –

DAVIS Funds SICAV (LUX)Regulated

Davis Value A ................. $23.50 –0.03 –

Davis Value B ................. $20.88 –0.03 –

Davis Global A ................ $18.50 ..... –

Davis Global B................ $16.51 –0.01 –

Deutsche Investment Funds Ltd (IRL)Regulated

Deutsche Americas Bond Fund . $59.90 ..... –

CABEI Central America Fund.. $1802.37 ..... –

Dodge & Cox Worldwide Funds (IRL)111 Buckingham Palace Road Victoria, London SW1W 0SR

www.dodgeandcox.worldwide.com 020 7340 8695

funds.ft.com/funds/Dodge&Cox

FSA Recognised

Dodge & Cox Worldwide Funds plc–Global Stock Fund

USD Accumulating Share Class $9.12 +0.09 –

GBP Accumulating Share Class £9.69 +0.02 –

EUR Accumulating Share Class ∑10.14 +0.08 –

Dodge & Cox Worldwide Funds plc–International Stock Fund



Dodge & Cox Worldwide Funds plc–U.S. Stock Fund


GBP Accumulating Share Class £9.14 +0.01 –


Dolmen Securities Ltd (IRL)Regulated

Dolmen Focus Fund ....... ∑76.4815 ..... –

Dominion Fund Management LimitedPO Box 660 Ground Floor, Tudor House Le Bordage St Peter Port

Guernsey – Channel Islands United Kingdom GY1 3PU

+44(0)1481 734343 info@dominion–funds.gg www.dominion–funds.com


Dominion CHIC Fd £ DC Class £11.6271 –0.5299 –

Dominion CHIC Fd £ IC Class . £11.6398 –0.5305 –

Dominion CHIC Fd ∑ DC Class ∑8.9736 –0.4716 –

Dominion CHIC Fd ∑ IC Class . ∑8.9737 –0.4716 –

Dominion CHIC Fd US$ DC Class.. $8.9616 –0.6429 –

Dominion CHIC Fd US$ IC Class $8.9552 –0.6426 –

Dominion CHIC Fund CHF DC Class.. SFr92.3839 –4.3746 –

Dominion CHIC Fund CHF IC Class SFr92.3839 –4.3746 –

Dominion PX0 USD......... $102.12 ..... 0.00

Dominion PX1 USD......... $97.45 ..... 0.00

Dominion PX2 USD......... $49.53 ..... 0.00

Dominion PX0 EUR ......... ∑128.31 ..... 0.00

Dominion PX1 EUR ......... ∑99.3 ..... 0.00

Dominion PX2 EUR ......... ∑67.36 ..... 0.00

Dominion NX0 USD......... $120.76 ..... 0.00

Dominion NX1 USD......... $103.18 ..... 0.00

Dominion NX2 USD......... $123.89 ..... 0.00

Dominion NX0 EUR......... ∑135.68 ..... 0.00

Dominion NX1 EUR......... ∑126.64 ..... 0.00

Dominion NX2 EUR......... ∑91.27 ..... 0.00

Dragon Capital Management1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam

Fund information, dealing and administration: [email protected]

www.ft.com/funds/Dragon/DragonCapitalManagement


Vietnam Enterprise Investments (VEIL).. $1.80 1.88 ..... –

Vietnam Growth Fund (VGF) $13.00 13.50 ..... –

Edinburgh Partners Limited (IRL)12 Charlotte Square, Edinburgh, EH2 4DJ +353 1 673 7627

Dealing – Fax only – +353 1 607 1978

FSA Recognised

Edinburgh Partners Opportunities Fund PLC

European Opportunities I EUR F . 1a E ∑1.468 ..... –

European Opportunities I GBP F . 1a E £1.285 ..... –

European Opportunities I USD F . 1a E $1.984 ..... –

European Opportunities A EUR F 5 E ∑1.441 ..... –

Global Opportunities I USD F.. 1a E $1.155 ..... –

Global Opportunities I GBP F.. 1a E £0.7482 ..... –

Global Opportunities I EUR F.. 1a E ∑0.8545 ..... –

Global Opportunities A GBP F. 5 E £0.7066 ..... –

EEA Fund Management (Guernsey) Limited (GSY)Regulated

EEA Life Settlements Fund – USD A . $164.37 ..... –

EEA Life Settlements Fund – USD Acc .. $119.29 ..... –

EEA Life Settlements Fund USD Dist. $101.49 ..... –

EEA Life Settlements Fund – EUR A . ∑153.11 ..... –

EEA Life Settlements Fund – EUR Acc .. ∑107.29 ..... –

EEA Life Settlements Fund – EUR Dist .. ∑101.47 ..... –

EEA Life Settlements Fund – GBP A . £139.86 ..... –

EEA Life Settlements Fund GBP Dist. £101.46 ..... –

EEA Life Settlements Fund GBP Acc . £152.22 ..... –

Meteor Senior Life Settlements Sterling Fund .. £139.13 ..... –

EEA Meteor Senior Life Settlements Sterling Fund II £129.07 ..... –

EEA Fund Management LimitedOther International Funds

EEA Europe Long Short EUR ∑110.94 ..... –

EEA Europe Long Short USD $111.03 ..... –

EEA Futures Fund A USD $1194.7 ..... –

EEA Futures Fund B GBP £919.84 ..... –

EEA Futures Fund C EUR ∑922.6 ..... –

EEA Select Opportunities £241.04 ..... –

EFG Hermes Financial Management (Egypt) LimitedDIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE

Contact: Telephone + 971 4 363 4029 Email AMsales@EFG–HERMES.com


The EFG–Hermes Egypt Fund (Est) .. $23.60 ..... –

MENA Fixed Income Fund Ltd (Class A; Sub Class 1) $975.29 ..... –

MENA Fixed Income Fund Ltd (Class A; Sub Class 2) $988.61 ..... –

MENA Fixed Income Fund Ltd (Class I; Sub Class 2) $976.93 ..... –

Middle East & Developing Africa Fund (Final)... $18.95 ..... –

Saudi Arabia Equity Fund.. SR6.4523 ..... –

Telecom Fund (Est)......... $24.84 ..... –


Egerton Capital European Fund Plc (IRL)Regulated

Egerton Capital European NAV (Final) Sep 23 .. £144.57 –6.76 –

Egerton European Dollar Fund Ltd (Est)Other International Funds

European Dollar USD NAV A (Est) Sep 23... $103.07 –2.05 –

Egerton European Dollar USD NAV B1 (Est) Sep 23 $104.33 –2.07 –

European Dollar USD NAV C1 (Est) Sep 23 . $108.21 –2.16 –

Egerton European Equity Fund LtdOther International Funds

NAV A (Est) Sep 23 ......... ∑51.19 –1.03 –

NAV B1 (Est) Sep 23....... ∑51.70 –1.04 –

NAV C1 (Est) Sep 23....... ∑53.54 –1.08 –

Egypt Trust (LUX)Regulated

Shares NAV Sep 23 ........ $22.97 ..... –

Emerging Markets ManagementOther International Funds

Emer Mkts Strat Cap Sep 23 . $1043.73 ..... –

EMM Emerging Mkts Quantitative Fd Class A .. $9.67956 ..... –

EMM Global Small Capitalization Fd Class A $15.77644 ..... 3.80

EMM Global Small Capitalization Fd Class B $15.81895 ..... –

EMM Latin American Small Capitalization Fd Class A $25.59967 ..... –

EMM Latin American Small Capitalization Fd Class B $24.74731 ..... 3.82

EMM Middle East Fd Class A Aug 31 $11.46259 ..... 3.83

EMM Middle East Fd Class B Aug 31 $11.89377 ..... 3.84

EMM South Asian Stars Fd Class A .. $10.87635 ..... 3.78

EMM South Asian Stars Fd Class B .. $11.21165 ..... 3.79

EMM South Asian Stars Fd Class C .. $10.91342 ..... –

Ennismore Smaller Cos Plc (IRL)5 Kensington Church St, London W8 4LD 020 7368 4220

FSA Recognised

Ennismore European Smlr Cos NAV. £64.88 –0.35 –

Ennismore European Smlr Cos NAV. ∑74.09 –0.23 –

Ennismore European Smlr Cos Hedge FdOther International Funds

NAV (Est) Sep 22 ............ ∑283.38 ..... –

For Epta Gbl Inv Fds please refer to European & Global Inv Ltd

Equinox Fund Mgmt (Guernsey) Limited (GSY)Regulated

Russian Opportunities .... $185.18 196.27 ..... –

Ermitage Group FundsOther International Funds

Money Funds

Ermitage Money Market Fund Sterling.. £18.54 ..... –

Ermitage Money Market Fund US $.. $15.78 ..... –

Ermitage Money Market Fund Euro .. ∑13.53 ..... –

Hedge Funds

Asset Selection A USD.... $17.599 ..... –

Asset Selection H USD.... $12.743 ..... –

Global Multi Strategy Fund B USD $111.21 ..... –

European Absolute Fd EUR.. ∑30.05 –0.21 –

European Absolute B EUR. ∑100.19 –0.7 –

Distressed and Event Alpha Class $211.18 ..... –

Global Long/Short Fund Class B USD Series 2 .. $101.39 ..... –

Global Dynamic Trading Fund Class A USD (Final) $86.23 ..... –

Resources Fd A USD....... $17.56 ..... –

Ermitage Selz Fund US$ . $312.66 ..... –

Managed Funds

Gbl Wealth Mgt Strategies Ltd A GBP £11.66 ..... –

Gbl Wealth Mgt Strategies Ltd C GBP £12.27 ..... –

Gbl Wealth Mgt Strategies Ltd E GBP £11.37 ..... –

Euronova Asset Management UK LLP (CYM)Regulated

Smaller Cos Cls One Shares (Final) Sep 16. ∑21.72O ..... –

Smaller Cos Cls Two Shares (Final) Sep 16. ∑15.63O ..... –

Smaller Cos Cls Three Shares (Final) Sep 16 ... ∑7.74O ..... –

Smaller Cos Cls Four Shares (Final) Sep 16 ∑10.48O ..... –

Eurobank EFG Fund Management Company (Lux) S.A. (LUX)Regulated

(LF) Absolute Return ∑.... ∑1.1098 –0.0027 –

(LF) Absolute Return II ∑ . ∑9.7166 –0.0071 –

(LF) Balanced – Active Fund (RON) .. RON12.3881 –0.1045 –

(LF) Balanced – Polish Fund (PLN) Zty6.3911 –0.0184 –

(LF) Cash Fund ∑ ............ ∑1.0976 (z) 1.38

(LF) Cash Fund (PLN)...... Zty10.6776 +0.0008 2.51

(LF) Cash Fund (RON) ..... RON12.6652 +0.0056 1.72

(LF) Eq Dynamic Polish (PLN). Zty5.0412 –0.0342 –

(LF) Eq Emerging Europe ∑ . ∑0.7682 –0.0205 –

(LF) Global Equities ∑...... ∑0.6337 +0.0046 –

(LF) Greek Equities ∑ ...... ∑0.2014 –0.0056 –

(LF) Turkish Equities ∑.... ∑10.4809 –0.3538 –

(LF) Eq Flexi Style Greece ∑ ∑0.7902 –0.0177 –

(LF) FOF Balanced Blend ∑.. ∑0.9847 –0.0066 –

(LF) FOF BRIC ∑ .............. ∑0.7126 –0.0187 –

(LF) FOF Equity Blend ∑ .. ∑0.7450 –0.0030 –

(LF) FOF Real Estate ∑ .... ∑10.2055 (z) –

(LF) Greek Government Bond ∑ . ∑6.3401 –0.0326 –

(LF) Income Plus $.......... $1.1262 +0.0005 1.00

(LF) SP 9% Equity Formula (PLN) . Zty9.0806 –0.0250 –

(LF) SP Commodity Max30 ∑ . ∑9.5495 –0.0915 –

FF & P Asset Mgmt (Guernsey) Ltd (GSY)Regulated

Enhanced Euro Commodities Cell . ∑11.15 ..... –

Enhanced GBP Commodities Cell . £11.99 ..... –

World Equities Ltd USD... $0.95032 0.95197O ..... –

Federated International Funds Plc (u) (IRL)c/o BNYM, Guild House, Guild Street IFSC, Dublin 1, Ireland

FSA Recognised

Federated High Income Advantage

USD Institutional Service Series .. $29.47 ..... 0.00

EUR Institutional Series H ∑184.005737 ..... –

Federated US Bond Fund

Euro Shares– Instl Series F ∑136.95 ..... 0.00

Federated Short–Term US Treasury Securities

Institutional Serv Series* . $1 ..... 0.00

Institutional Series H ..... $1 ..... 0.00

Federated Short–Term US Govt Securities Fund

Institutional Serv Series * $1 ..... 0.00

Investment Series * ....... $1 ..... 0.00

Investment Gth Series ... $168.91 ..... 0.00

Institutional Series H H .. $1 ..... 0.00

Federated Short–Term US Prime Fund

Institutional Service Series*.. $1 ..... 0.00

Institutional Series......... $1 ..... 0.09

Investment – Dividend Ser H $1 ..... 0.00

Institutional Services – Dividend Ser H. $1 ..... 0.00

Institutional Shares Accumulating F $107.52 ..... 0.09

Federated Short–Term Euro Fund

Institutional Series H ..... ∑1 ..... 0.48

Institutional Service Series H C ∑1 ..... 0.23

Institutional Series Accumulating H . ∑119.64 ..... 0.48

Institutional Service Series Accumulating H ∑114.66 ..... 0.08

Federated Strategic Value Equity Fund

Class A Shares F...... 5a E $7.21 ..... 0.98

Class C Shares F ........... E $7.21 ..... 0.98

* Annualised 7–Day Yield

FIL Fund Management (LUX)2a, rur Albert Borschette, BP 2175, L–1021, Luxembourg

Phone 800 22 089, 800 22 088

Regulated

China Consumer A–GBP . £9.314 (z) –

China Focus A–GBP........ £2.882 (z) –

China Opportunities A–GBP 3a £0.898 (z) –

Global Financial Services A–GBP 3a £0.244 (z) –

Global Health Care A–GBP . 3a £0.262 (z) –

Global Industrials A–GBP. 3a £0.539 (z) –

Global Inflation–linked Bond A–GBP (heg'd) 3a £1.194 (z) 1.04

Global Real Asset Securities A–GBP .. 0 £1.111 (z) –

Global Technology A–GBP.. 3a £0.132 (z) –

Global Telecommunications A–GBP 3a £0.208 (z) –

India Focus A–GBP .. 5d £3.095 (z) –

Latin America A–GBP. 3a £1.934 (z) –

Findlay Park Funds Plc (IRL)Styne House, Upper Hatch Street, Dublin 2 Tel: 00 353 1603 6460

FSA Recognised

American Fund USD Class . $43.28 +0.25 –

American Fund GBP Hedged. £23.52 –0.02 –

Latin American Fund USD Class.. $14.91 +0.41 –

Fitzwilliam Asset Mgmt (Guernsey) Ltd (GSY)Regulated

Total Return Fund PCC Ltd

Fitzwilliam Opprtunity Dollar Jul 29 . $116.93 ..... –

Fitzwilliam Opprtunity Sterling Jul 29 £130.40 ..... –

The TRF Commodity Plus Dollar Fund .. $126.22 ..... –

The TRF Commodity Plus Sterling Fund £123.77 ..... –


Foord Asset Mgt (Guernsey) Ltd (GSY)Regulated

Foord International Trust $26.63 ..... –

Fiduciary International Ireland Limited (IRL)JPMorgan House – International Financial Services Centre

Dublin 1, Ireland

FSA Recognised

Franklin Templeton Emerging Market Debt Opportunities Fund Plc

Frk Templeton Emg Mkts Debt Opp CHF .. SFr19.34 –0.16 –

Frk Templeton Emg Mkts Debt Opp GBP . 0 £10.63 –0.01 –

Frk Templeton Emg Mkts Debt Opp EUR .. ∑13.13 –0.01 –

Frk Templeton Emg Mkts Debt Opp USD . 0 $18.43 –0.04 –

Franklin Templeton Investment Funds (LUX)26 Bld Royal L–2449 Luxembourg 00 352 466667 212

www.franklintempleton.co.uk UK freephone 0 800 305 306

funds.ft.com/funds/franklintempleton/investment

FSA Recognised

Class A Dis

Frk Gbl R.Estate (USD) A Dis . $6.80 +0.01 –

Frk High Yield................ $6.49 –0.02 –

Frk High Yield (Euro)...... ∑5.36 –0.02 –

Frk Income.................... $10.45 –0.02 –

Frk US Government ....... $9.79 –0.04 –

Frk US Liquid Reserve Inc $9.73 ..... –

Frk US Total Return ....... $10.7 –0.04 –

Frk US Ultra Short Bond Fund .. $9.50 –0.02 –

Tem Asian Bond............ $13.45 +0.05 –

Tem Asian Growth......... $26.87 –0.45 –

Tem Emerging Markets . $30.1 –0.12 –

Tem Emg Mkts Bd......... $19.03 ..... –

Tem Emg Mkts Bd Fd AQdis F . $8.31 –0.01 –

Tem Euro Gov. Bond...... ∑9.49 –0.02 –

Tem Euro Liquid Reserve. ∑4.40 ..... –

Tem Europ Corp Bond Fd F ∑9.35 –0.03 –

Tem European Total Return ∑8.25 +0.01 –

Tem Global.................... $20.61 +0.22 –

Tem Global (Euro).......... ∑9.57 +0.05 –

Tem Global Aggregate Bond Fd F $9.62 ..... –

Tem Global Balanced .... $16.34 +0.13 –

Tem Global Bond........... $18.76 +0.17 0.40

Tem Global Bond (Euro). ∑9.91 ..... –

Tem Global Equity Income . $7.34 +0.06 –

Tem Global High Yield Fd F 6a $9.31 –0.01 –

Tem Global Income ....... $10.58 +0.06 –

Tem Global Smaller Cos $25.69 –0.12 –

Tem Global Total Return $16.06 +0.09 –

Tem Latin America ........ $65.41 +0.76 –

Class A Acc

Frk Asia Flex Cap Fd 6a $11.05 –0.2 –

Frk Biotech Discovery.... $10.11 +0.1 –

Frk Euroland Core Fund. ∑10.09 +0.07 –

Frk European Growth..... ∑8.57 +0.01 –

Frk European Sml Mid Cap Gth ∑17.13 –0.02 –

Frk Global Growth ......... $9.49 +0.03 –

Frk Global Sml Mid Cap Gth.. $19.02 +0.02 –

Frk Gold and Precious Mtls Fd F . $10.65 –0.57 0.17

Frk India........................ $22.12 –0.07 –

Frk MENA Fund........ 6a $4.27 ..... –

Frk Mutual Beacon ........ $41.35 +0.18 –

Frk Mutual Euroland Fd . ∑9.79 +0.01 –

Frk Mutual European EUR ∑13.84 +0.06 –

Frk Mutual Gbl Disc....... $11.44 +0.03 –

Frk Natural Resources Fd F 1 $8.42 –0.14 –

Frk Real Return Fd F...... $10.06 –0.01 –

Frk Strategic Income Fd.. 6a $12.38 ..... –

Frk Technology ............. $6.5 +0.08 –

Frk Tem Global Gth & Val. $15.71 +0.1 –

Frk Tem Japan.............. Y416.36 –0.13 –

Frk Templeton Gbl Equity Strategies Fd 6a $8.09 ..... –

Frk Templeton Gbl Fundamental Strat Fd .. 6a $9.13 +0.06 –

Frk U.S. Focus Fund. 6a $8.75 +0.09 –

Frk US Equity ................ $13.84 +0.05 –

Frk US Opportunities ..... $6.65 +0.06 –

Frk US Sml Mid Cap Gth F.. $11.1 +0.11 –

Frk Wrld Perspective Fd $12.34 +0.03 –

Tem Asian Sml Comp Fd . $23.76 –0.27 –

Tem BRIC...................... $14.45 ..... –

Tem China .................... $20.28 –0.29 –

Tem Eastern Europe...... ∑19.31 –0.51 –

Tem Emerging Mkts Sml Comp Fd . 6a $6.90 –0.12 –

Tem Euro Money Market Fd ∑1008.91 +0.02 –

Tem Euroland................ ∑9.97 +0.07 –

Tem European EUR ....... ∑11.31 +0.08 –

Tem Frontier Mkts Fund $13.80 –0.16 –

Tem Growth (Euro) ........ ∑8.1 +0.05 –

Tem Korea .................... $4.36 –0.19 –

Tem Thailand ................ $14 –0.51 –

Tem US Value................ $9.72 +0.14 –

Frontier Capital (Bermuda) LimitedOther International

Commercial Property–GBP Class (Susp) £98.43 ..... –

Global Real Estate–GBP C Class (Susp) . £96.28 ..... –

Fundinvest (Guernsey) Limited (GSY)Level 4, Town Mills, Trinity Square, St. Peter Port, Guernsey GY1 3YN

Regulated

The Stafford Global Equity Fund ∑114.3788 ..... 0.00

GAM Limited (IRL)FSA Recognised

GAM Fund Management Ltd

Georges Court, 54–62 Townsend Street, Dublin 2 + 353 1 6093927

GAM Star Fund Plc

GAM Star Absolute Euro USD Inc F.. $9.6797 ..... 0.00

GAM Star Asia–Pacific Eqty USD Acc F... 5 $8.9138 –0.07 1.30

GAM Star Asian Eqty USD Ord Acc F.. 5 $11.1136 –0.32 2.13

GAM Star Cap.Appr.US Eqty USD Inc F . $9.3121 +0.08 0.00

GAM Star China Equity USD Acc F . 5 $14.845 –0.38 1.24

GAM Star Composite Abs Rtn EUR Ac F .. 5 ∑10.2247 +0.09 0.00

GAM Star Cont European Eqty GBP Acc F 5 £1.9142 –0.01 0.00

GAM Star Cred Opportunities EUR Acc F... ∑8.8866 –0.02 0.00

GAM Star Cred Opportunities GBP Acc F .. £9.1484 –0.07 6.80

GAM Star Cred Opportunities USD Acc F .. $9.1973 +0.01 0.00

GAM Star Discretionary FX GBP Acc F . £0.7875 –0.04 0.00

GAM Star Discretionary FX USD Acc Sep 20 F 5 $8.0582 –0.4 0.00

GAM Star Divers. Market Ntrl Cr USD Acc F $10.3061 +0.01 0.00

GAM Star Dynamic Gbl Bd USD Acc H . $10.3322 –0.13 0.00

GAM Star Emerg. Market Rates USD Acc F $10.5486 +0.02 0.00

GAM Star Emerg Market Tot.Ret.USD Acc F .. 5 $11.0137 –0.18 0.00

GAM Star European Eqty USD Acc F .. 5 $13.3453 +0.08 0.00

GAM Star GAMCO US Equity Acc F .. $8.3993 +0.07 0.00

GAM Star GEO USD Acc F $7.0456 –0.03 0.00

GAM Star Global Conv Bond USD Acc F $9.8338 –0.1 0.00

GAM Star Global Eq Inflation Fcs USD II Acc F . $117.3366 +0.72 0.00

GAM Star Global Rates USD Acc F . 5 $9.8802 –0.11 0.00

GAM Star Global Selector USD Acc F . 5 $10.0505 +0.1 0.00

GAM Star Japan Eqty USD Acc F 5 $9.614 –0.01 0.00

GAM Star Keynes Quant Strat USD Acc F .. $10.6636 +0.1 0.00

GAM Star North of South EM Equity Acc F . $8.8392 –0.21 0.00

GAM Star Technology USD Acc F. $8.675 +0.11 0.00

GAM Star Trading Acc F $9.4557 –0.05 0.00

GAM Star US All Cap Eqty USD Acc F . 5 $8.0462 +0.08 0.00

GAM Star Worldwide Eqty USD Acc F . 5 $2111.28 +12.15 0.61

GAM LimitedOther International Funds

GAM Absolute Return Bond USD .. $102.5087 –0.24 –

GAM Asia Equity Inc ....... $539.83 –16.66 0.93

GAM Asia Eqty Hdg Inc USD Open $236.44 –9.7 –

GAM Capital Appreciation Eqty USD . $249.93 +2.26 0.00

GAM Composite Abs Rtn Access Acc £95.83 +0.58 0.00

GAM Composite Abs Rtn GBP Index . £102.11 +0.64 –

GAM Composite Abs Rtn GBP Listed. £140.22 +0.86 –

GAM Composite Abs Rtn GBP Open . £208.48 +1.28 –

GAM Cross Trading Inc USD Open $479.69 –4.86 –

GAM Delphic USD A........ $103.96 +1.57 0.00

GAM Diversity Inc USD Open . $652.69 +1.35 –

GAM Diversity Inc USD 2.5XL. $66.3 +0.33 0.00

GAM Diversity II Inc USD Open.. $199.06 +0.42 –

GAM Diversity III USD Open. $115.44 +0.21 –

GAM Euro Special Bd EUR Open ∑115.32 –0.26 –

GAM Eurp Eqty Hedge USD Open . $198.59 +0.05 0.00

GAM GAMCO Equity........ $899.6 +6.99 0.00

GAM Global Diversified USD Inc $242.18 +7.2 0.00

GAM Global Macro Hedge USD . $106.55 +0.2 0.00

GAM Greater China Eq Hdg USD $191.36 –5.15 –

GAM Interest Trend Inc... $293.04 –0.88 –

GAM Japan Equity Inc .... $960.48 –1.16 –


GAM Limited - Contd.GAM Japan Eqty Hedge USD Open .. $118.08 +2.66 –

GAM Multi–Commodities USD Open . $128.85 –0.74 –

GAM Multi–Diversified EUR . ∑101.14 +0.28 –

GAM Multi–Emg Mkts USD Open . $626.98 –10.96 –

GAM Multi–Europe II USD Open $116.26 +0.59 –

GAM Multi–Europe USD Open $481.81 +2.47 –

GAM Multi–Systematic Trading USD. $100.17 –1.49 –

GAM Asia–Pacific Equity Inc $1073.82 –8.04 0.00

GAM Selection Hedge Inc . $3123.06 –18.3 –

GAM Singapore/Malaysia Equity $2283.45 –27.08 2.03

GAM Sterling Special Bond Inc . £240.03 –2.05 4.94

GAM Trading Inc USD Op $1005.44 –9.84 –

GAM Trading II GBP 1.25 XL £106.57 –1.37 0.00

GAM Trading II Inc USD Op . $326.61 –3.2 –

GAM Trading III Inc USD Op. $167.67 –1.64 –

GAM Trading IV Inc USD Op $159.49 –1.56 –

GAM Trading V Inc USD Op . $133.39 –1.3 –

GAM US Dollar Special Bond Inc .. $610.52 +0.52 –

GAM Worldwide.............. $1865.44 +10.74 0.95

GAMut Investments Inc. T Class $121.54 +1.23 –

GLC LtdOther International Funds

GLC Diversified USD (Final) . $65.9151 ..... –

GYS Investment Management Ltd (GSY)Regulated

Taurus Emerging Fund Ltd.. $150.6561 153.7307 ..... 0

Generali International LimitedPO Box 613, Generali House, Hirzel Street, St Peter Port, Guernsey, GY1 4PA 01481 714108

International Insurances

US Dollar Global Managed $3.67 3.96 ..... –

Stg Global Managed ....... £3.58 3.86 ..... –

Euro Global Managed ..... ∑2.03 2.19 ..... –

Global Bond USD ............ $3.47 3.74 ..... –


Genesis Asset Managers LLPOther International Funds

Emerging Mkts NAV Sep 15 £5.04 ..... –

Griffin Umbrella Fund (IRL)Regulated

Eastern European Fund Class A ∑432.87 ..... –

Eastern European Fund Class B ∑93.22 ..... –

Eastern European Value Fund ∑381.26 ..... –

European Opportunities Fund A ∑123.31 ..... –

European Opportunities Fund B ∑93.25 ..... –

Ottoman......................... ∑101.35 ..... –

HPB Assurance LtdPO Box 179, IOMA House, Hope Street, Douglas, Isle of Man, IM99 1PU 01624 681343

International Insurances

Holiday Property Bond Ser 1 Sep 1 .. £0.625 ..... –

Holiday Property Bond Ser 2 Sep 1 .. £0.676 ..... –

HSBC Fd Administration (Jersey) Ltd (JER)HSBC House, St. Helier, Jersey JE1 1HS 01534 606520

FSA Recognised

Intl Sterling Income ..... 3 £1.0082 1.0390 –0.0055 3.46

Hamilton Lane Private Equity Fund PLC (IRL)Regulated

NAV................................ $148.27 ..... –

Hamon Investment GroupOther International Funds

Asian iTech .................... $4.98 ..... –

Asian Market Leaders – USD . $21.41 ..... –

Asian Market Leaders – GBP . £10.83 ..... –

Greater China – USD ...... $7.49 ..... –

Greater China – GBP ...... £3.06 ..... –

Oriental Long Short ........ $90.7892 ..... –

Selected Asian P'folio..... $44.65 44.66 ..... –

HANDELSBANKEN FUNDS SICAV (LUX)15 rue Bender, L–1229, Luxembourg +352 27 486 1

FSA Recognised

America Shares............. $34.96 ..... –

Commodity A SEK F....... SKr116.15 ..... –

Commodity AI SEK F...... SKr120.27 ..... –

Commodity BI SEK F...... SKr113.48 ..... –

Euro Liquidity A F ........ 5 ∑102.98 ..... –

Euro Liquidity AI F ....... 5 ∑103.43 ..... –

Europe Selective ........... ∑61.42 ..... –

Far East Shares............. $8.70 ..... –

Global Ethical A F .......... SKr94.91 ..... –

Global Ethical AI F ......... SKr95.93 ..... –

Global Ethical BI F ......... SKr90.26 ..... –

International Shares ...... $81.93 ..... –

Nordic Shares ............... ∑45.90 ..... –

Russia Shares F .......... 5 E SKr57.86 ..... –

Swedish Bonds Shares.. SKr3425.27 ..... –

Swedish Sht Term Ass Sh A 2 F.. SKr137.06 ..... –

Swedish Short Term Assets Shares F. 0 SKr136.88 ..... –

Haussmann Hldgs NV CuracaoOther International Funds

Haussman Sep 15.......... $2048.30O ..... 6.0851

Haussmann Holdings NV Cls C . ∑1808.80O ..... 6.6628

Henderson Fund SICAV (LUX)16, Boulevard d'Avranches, L–1160 Luxembourg, Grand Duchy of Luxembourg

FSA Recognised

Indian Equity GBP Inc .. 5 £7.06 ..... –

Heritage Wealth SIFOther International Funds

Heritage Wealth SIF – Bal. EUR. ∑98.74 ..... –

Heritage Wealth SIF – Bal. USD $99.82 ..... –

Heritam SicavOther International Funds

Eastern European Heritage EUR ∑180.29 ..... –

Energy Fund................... $85.30 ..... –

European Opportunities Fd EUR ∑105.04 ..... –

USA Growth.................... $99.56 ..... –

Hermes Investment Funds Plc (IRL)Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ 020 7680 3720

FSA Recognised

Global Emerging Markets Fund £1.6615 ..... –

Global Equites Selection Fund F .. £1.1171 ..... –

Japan Equity Fund F...... £1.1214 (z) –

Pan European Small Cap Companies Fund £1.5617 ..... –

Quant Global Equity Fund £1.4106 ..... –

Sourcecap European Alpha Fund F . £1.0109 ..... –

UK Smaller Companies Fund £1.7403 ..... –

UK Small and Mid Cap Companies Fund... £2.0058 ..... –

Global Investment Grade Z GBP Acc .. 5 £1.1235 ..... –

Global High Yield Bond Fund Cls Z GBP Acc .. 5 £1.0869 ..... –

Horizon Asset Management Plc (CYM)Regulated

Managing Partners British Prprty Opps Fd GBP Grwth £111.5961 ..... –

IKANO Funds (LUX)Regulated

All seasons Fd................ ∑10.7542 ..... –

European Equity ............. ∑8.0423 ..... –

Global Equity .................. ∑6.6021 ..... –


IT Asset ManagementOther International Funds

IT Funds Info Tech UK Dist £458.87 +3.4 0.12

Impax Asset Management (IRL)37–43 Sackville Street, London W1S 3EH 020 7434 1122

FSA Recognised

Env Mkts (Ire) Stl A........ £1.556 ..... –

Env Mkts (Ire) Stl B........ £1.503 ..... –

Env Mkts (Ire) Euro A..... ∑1.219 ..... –

Env Mkts (Ire) Euro B..... ∑0.959 ..... –

Env Mkts (Ire) USD A ..... $1.257 ..... –

Env Mkts (Ire) USD B ..... $1.118 ..... –

Asian Env Mkts (Ire) Stl A . 1 £0.750 ..... –

Asian Env Mkts (Ire) Stl B. 5 £0.746 ..... –

Asian Env Mkts (Ire) USD A . 1 $0.848 ..... –

INDIA VALUE INVESTMENTS LIMITED (INVIL)www.invil.mu


NAV Sep 23.................... £4.40 ..... –

Intrinsic Value Investors (IVI) LLP (IRL)1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210

FSA Recognised

IVI European Fund EUR 0 E ∑9.57 +0.02 –

IVI European Fund GBP 0 E £11.65 +0.04 –


Invesco (LUX)Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282

FSA Recognised

Invesco Management SA

Invesco Asia Balanced A dist $13.67O –0.25 –

Invesco Asia Opportunities Equity A. $76.39 –2.73 0.00

Invesco Asia Pacific Real Est Sec Fd A Dist . 5d $7.48O –0.15 –

Invesco Asia Consumer Demand Fund A income 5d $9.77O –0.31 –

Invesco Asia Infrastructure (A) . $11.46O –0.33 0.04

Invesco Absolute Return Bond Fund A . ∑2.7169 +0.0105 1.74

Invesco Balanced Risk Allocation Fund A .. ∑12.77O –0.12 –

Invesco Capital Shield 90 (EUR) A ∑11.08 +0.01 –

Invesco Emerging Europe Equity Fund A .. $9.11 +0.18 –

Invesco Emerging Local Currencies Debt A Inc. $10.1771 +0.1129 –

Invesco Emerging Mkt Quant.Eq. A . $9.46 +0.01 –

Invesco Energy A........... $21.77 –0.31 –

Invesco Euro Corporate Bond Fund (A) . ∑12.44 +0.0076 3.97

Invesco Euro Inflation Linked Bond A .. ∑14.2461 –0.0705 0.76

Invesco Euro Reserve A . ∑321.74 +0.01 0.03

Invesco European Bond A ∑5.147 –0.0177 2.99

Invesco European Growth Equity A.. ∑13.17 +0.43 –

Invesco Global Absolute Return Fund A Class 5d ∑10.42 +0.04 –

Invesco Global Bond A Inc.. $5.3426O –0.0117 2.38

Invesco Global Inc Real Estate Sec A dist .. $7.83O +0.04 –

Invesco Global Inv Grd Corp Bond A Dist .. $10.4498 –0.0607 –

Invesco Global Leisure A.. $17.1 +0.18 –

Invesco Global Small Cap Value A $31.32 –0.05 1.16

Invesco Global Structured Equity A . $28.12O +0.1 –

Invesco Global Total Ret.(EUR) Bond Fund A ... ∑9.6391 +0.038 –

Invesco Global Value Equity A.. $36.57 +0.35 –

Invesco Gold & Precious Metals A $10.8 –0.62 –

Invesco Greater China Equity A $29.1 –1.14 –

Invesco India Equity A ... $35.14O –0.39 –

Invesco Japanese Equity Adv. A.. Y1618 –1.63 –

Invesco Japanese Value Equity A Y594 –4.2 –

Invesco Latin American Equity A 5d $8.80 +0.22 –

Invesco Nippon Select Equity A Y175 –3 –

Invesco Nippon Small/Mid Cap Equity A Y499 –19 –

Invesco Pan European Equity A EUR Cap NAV.. ∑9.74 +0.45 –

Invesco Pan European High Income Fd A .. ∑9.34O +0.12 7.88

Invesco Pan European Small Cap Equity A . ∑10.33 +0.26 –

Invesco Pan European Structured Equity A ∑8.53 +0.31 –

Invesco UK Investment Grade Bond A .. £0.8744O –0.0075 –

Invesco US Structured Equity A $12.3 +0.09 –

Invesco US Value Equity A.. $17.92 +0.17 4.57

Invesco USD Reserve A . $87 ..... 2.69

Invesco Global Asset Management Ltd (IRL)Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200

FSA Recognised

Invesco Stlg Bd A QD F.. £2.2228 –0.0096 6.48

Invesco Sterling Rerserve F £1.723 ..... 2.78

Invesco Asian Equity A .. $4.63 –0.13 –

Invesco ASEAN Equity A $78.58 –3.6 0.00

Invesco Bond A ............. $29.28 –0.04 2.24

Invesco Continental Eurp Small Cap Eqty A $104.53 +2.9 0.00

Invesco Emerging Markets Equity A $29.45 +0.02 0.00

Invesco Emerging Markets Bond A.. $19.73 –0.23 5.83

Invesco Continental European Equity A ∑4.24 +0.23 –

Invesco Gilt A ................ £13.69 –0.11 2.67

Invesco Global Small Cap Equity A NAV $74.01 +0.26 0.00

Invesco Global High Income A NAV . $12.04 –0.09 7.04

Invesco Gbl R/Est Secs A GBP F F .. 5d £5.14O –0.02 –

Invesco Global Health Care A $64.11 +0.9 0.00

Invesco Global Select Equity A . $9.09O +0.04 –

Invesco Japanese Small/Mid Cap Equity A. $19.8 –0.76 0.00

Invesco Jap Eqty Core A $1.22 –0.04 –

Invesco Japanese Equity A. $14.46 –0.44 0.00

Invesco Korean Equity A $21.65 –0.8 0.00

Invesco PRC Equity A..... $38.41 –1.3 0.00

Invesco Pacific Equity A. $33.04 –0.91 0.00

Invesco Global Technology A $10.02 +0.12 0.00

Invesco UK Eqty A ......... £4.77 +0.12 –

Invest ADClient services: +971 2 692 6101 [email protected]


Invest AD – Iraq Opportunity Fund $101.35 ..... –

Invest AD – UAE Total Return Fund .. AED61.38 ..... –

Invest AD – Emerging Africa Fund $96.52 ..... –

Invest AD – GCC Focus Fund . $94.59 ..... –

Invest AD – MENA Dynamic Fund. $79.05 ..... –


Investec Asset Management Ireland Ltd (IRL)JP Morgan Admin Svs Ire Ltd, JP Morgan Hse, IFSC Dub 1 00 353 1 612 3363

FSA Recognised

Investec Liquidity Funds Plc

Euro Liquidity A Acc EUR . ∑11.8708 ..... –

Euro Liquidity I Inc EUR.. 0 ∑1.0000 ..... 0.9351

Short Dated Bd A Acc GBP . £12.9574 ..... –

Short Dated Bd I Acc GBP 0 £13.8300 ..... –

Sterling Liquidity A Acc GBP . £13.1010 ..... –

Sterling Liquidity I Inc GBP . 0 £1.0000 ..... 0.5875

US$ Liquidity A Acc USD.. $11.9363 ..... –

US$ Liquidity I Inc USD 0 $1.0000 ..... 0.1489

Investec Global Strategy Fund (LUX)49 Avenue JF Kennedy

L–1855 Luxembourg Enquiries 020 7597 1800

FSA Recognised

Investec Global Strategy Fund

Africa & Middle East A Acc USD * . 5 $16.04 ..... –

Africa Opps A Acc USD . 5d $16.84 ..... –

American Equity A Acc USD 5 $13.84 ..... –

American Equity A Inc USD . 5 $64.69 ..... –

Asia Pacific Eq. Acc USD . 5d $20.26 ..... –

Asia Pacific Eq. Inc USD 5d $20.25 ..... 0.01

Asian Equity A Acc USD . 5 $15.76 ..... –

Asian Equity A Inc USD 5 $23.22 ..... –

Continental European Equity A Inc USD .. 5 $266.84 ..... –

Continental European Equity A Acc USD.. 5 $11.05 ..... –

Currency Alpha A Inc GBP 5 £5.986 ..... –

EAFE A Inc USD ........... 5 $12.4 ..... –

Emrg Mkts Blended Debt A Acc . 5d $19.37 ..... 0.06

Emrg Mkts Blended Debt A Inc.. 5d $18.79 ..... 0.06

Emrg Mkts Corp Debt A Acc USD .. 5 $18.98 ..... 0.05

Emrg Mkts Curr A Acc USD 5d $19.19 ..... 0.03

Emrg Mkts Curr Alpha A Acc USD . 5 C $19.36 ..... –

Emrg Mkts Equity A Acc USD. 5 $14.7 ..... –

Emrg Mkts Hard Curr Debt A Acc USD 5 $20.19 ..... 0.04

Emrg Mkts Hard Curr Debt A Inc USD. 5 $19.97 ..... 0.04

Emrg Mkts Local Curr Debt A Acc USD... 5 $24.85 ..... 0.07

Emrg Mkts Local Curr Debt A Inc USD 5 C $19.19 ..... 0.07

Emrg Mkts Local Curr Dyn Debt A Acc USD 5d $19.18 ..... 0.07

Emrg Mkts Local Curr Dyn Debt A Inc USD . 5d $18.53 ..... 0.07

Enhanced Gbl Energy A Acc USD .. 5 $18.22 ..... –

Enhanced Nat Resources A Acc USD . 5 $19.31 ..... –

Euro Money A Acc EUR 0 ∑68.9844 ..... 0.01

Euro Money A Inc EUR. 0 ∑26.16 ..... 0.01

Global Bond A Acc USD . 5 $98.42 ..... 0.02

Global Bond A Inc USD 5 $45.48 ..... 0.02

Global Defensive Bond Fund.. 5 $19.2 ..... 0.02

Global Dynamic A Acc USD. 5 $81.52 ..... –

Global Dynamic A Inc USD.. 5 $80.91 ..... –

Global Dynamic Rsrcs A Acc USD . 5 $10.21 ..... –

Global Dynamic Rsrcs A Inc USD .. 5 $10.21 ..... –

Global Energy A Acc USD . 5 $15.22 ..... –

Global Energy A Inc USD 5 $267.94 ..... –

Global Energy Long Short A Acc USD . 5 $18.97 ..... –

Global Equity A Acc USD 5 $188.49 ..... –

Global Equity A Inc USD. 5 $186.91 ..... –

Global Franchise A Acc USD 5 $25.92 ..... –

Global Franchise A Inc USD 5 $25.83 ..... –

Global Gold A Acc USD 5 $24.94 ..... –

Global Gold A Inc USD . 5 $89.88 ..... –

Global Opp Equity A Inc USD.. 5d $19.48 ..... 0.01

Global Strat Equity A Acc USD 5 $12.75 ..... –

Global Strat Equity A Inc USD. 5 $69.37 ..... –

Global Strategic Inc A Acc USD . 5 $24.21 ..... 0.06

Global Strategic Inc A Inc USD .. 5 C $20.37 ..... 0.06

Global Strat Managed A Acc USD.. 5 $87.86 ..... –

Global Strat Managed A Inc USD 5 $38.47 ..... –

High Income Bond A Acc GBP 5 £57.15 ..... 0.09

High Income Bond A Inc GBP . 5 £15.54 ..... 0.09

Inv Grade Corp Bond A Acc USD 5 $18.95 ..... 0.05

Inv Grade Corp Bond A Inc USD. 5 C $28.47 ..... 0.05

Latin Amer.Corp.Debt A Acc USD .. 5d $21.42 ..... 0.08

Latin Amer.Corp.Debt A Inc USD 5 $18.5 ..... 0.08

Latin Amer.Eq. A Acc USD.. 2d $16.95 ..... –

Managed Currency A Acc USD .. 5 $131.5 ..... –

Managed Currency A Inc USD 5 $35.48 ..... –

Mid East & N Africa A Acc USD * 5 $13.77 ..... –

Multi–Asset Protector Fund A ACC USD 5d $18.89 ..... –

Sterling Money A Acc GBP.. 0 £56.323 ..... –

Sterling Money A Inc GBP 0 £9.9598 ..... –

UK Equity A Acc GBP ... 5 £8.86 ..... 0.01

UK Equity A Inc GBP .... 5 £50.2 ..... 0.01

US Dollar Money A Acc USD 0 $65.5175 ..... –

US Dollar Money A Inc USD. 0 $20.0622 ..... –

* Daily except Fridays and Post Ramadan & Hajj Pilgrimage holidays

Investec Asset Mgmt (Guernsey) Ltd (GSY)Regulated

Investec Expert Investment Funds PCC Limited

Global Commodities & Resources Fund. $33.365 35.121 ..... 0.0

Investec Professional Funds PCC Ltd

Global Diversified Growth I Inc USD.. $20.678 21.766 ..... 0.00

Global Diversified Growth A USD.. $28.750 30.263 ..... 0.00

Investec Premier Funds PCC Ltd

Africa A USD .................. $19.457 20.481 ..... 0.0

Pan Africa A USD............ $26.48 27.873 ..... 0.0

Other Investec Guernsey B Schemes

Currency High Alpha S Acc USD $19.383 20.403 +0.173 0.0

J O Hambro Capital Mgmt Ltd (IRL)14 Ryder Street, London SW1Y 6QB, United Kingdom

Phone: 0845 450 1972

FSA Recognised

All Europe Dynamic Growth EUR Retail... 5 ∑0.785 ..... –

All Europe Dynamic Growth GBP Retail... 5 £0.803 ..... –

Continental European Ret GBP .. 5 £1.966 ..... –

Continental European Ret EURO H . 5 ∑1.631 ..... –

Emerging Markets Retl Inc NAV. 5 £0.892 ..... –

Emerging Mkts EUR Retl Inc NAV .. 5 ∑0.893 ..... –

Emerging Markets USD Retail.. $1.049 ..... –

European Select Values Ret GBP H 5 £2.452 ..... –

European Select Values Ret EURO H.. 5 ∑1.124 ..... –

European Retail GBP H 5 £1.765 ..... –

European Retail EURO H 5 ∑1.409 ..... –

Global Emerging Markets Opportunities GBP Retail £0.802 ..... –

Global Emerging Markets Opportunities USD Retail $0.777 ..... –

Global Emerging Markets Opportunities EUR Retail ∑0.834 ..... –

Global Select Retail EUR ∑1.087 ..... –

Global Select Retail GBP £1.185 ..... –

Global Select USD Retail $0.906 ..... –

Japan Hedged Retail GBP 5 £0.775 ..... –

Japan Ret GBP ............ 5 £1.242 ..... –

Japan Ret EURO .......... 5 ∑0.951 ..... –

Japan Ret JPY............. 5 Y144.512 ..... –

UK Growth Retail GBP.... £1.561 ..... –

JOHIM Global Investment Funds plc (IRL)Regulated

JOHIM Global Equity USD A class . $78.3318 ..... –

JOHIM Global Equity USD B class . $80.3343 ..... –

JOHIM Global Equity EUR A class . ∑74.7308 ..... –

JOHIM Global Equity GBP B class . £75.9449 ..... –

JOHIM Global Equity GBP B class (dist) . £74.6510 ..... –

JPMorgan Asset Management (Europe) S.a.r.l (LUX)6 Route de Trèves L–2633 Senningerberg Luxembourg

Tel (352) 34 10 1 (Others funds)

Fax (352) 34 10 8000 (Others funds)

www.jpmorgan.com/assetmanagement

funds.ft.com/funds/jpmorgan/assetmanagementlux

FSA Recognised

Equity US

JF America Eq A (dist)–USD (1) F .. 5 $39.42 (z) –

JF US Smaller Co.A (dist)–USD (1) .. $12.43 (z) –

JPM Brazil Equity A (acc)–EUR (1) F .. 5 E ∑55.99 (z) –

JPM Brazil Equity A (dist)–USD (1) F .. 5 E $8.45 (z) –

JPM US Value A (acc)–EUR Hdg (1) F . 5 E ∑6.11 (z) –

JF US Value A (dist)–USD (1). $11.02 (z) –

JPM Am Eq A (acc)–USD (1) F 5 $9.68 (z) –

JPM Am Eq A (dist)–USD (1) . $73.47 (z) –

JPM Am Eq A (acc)–EUR Hdg (1) F 5 E ∑6.00 (z) –

JPM Am L Cap A (acc)–EUR (1) F .. 5 E ∑9.05 (z) –

JPM Am L Cap A (acc)–USD (1) F.. 5 $10.35 (z) –

JPM Am L Cap A (dist)–USD (1) F $9.20 (z) –

JPM US Smaller Co.A (acc)–USD (1) F 5 $8.34 (z) –

JPM US Smaller Co.A (dist)–USD (1) $84.82 (z) –

JPM H US STEEP A (acc)–EUR (1) F... 5 E ∑7.25 (z) –

JPM H US STEEP A (inc)–EUR (1) F 5 E ∑7.16 (z) –

JPM H US STEEP A (acc)–USD (1) F .. 5 E $9.79 (z) –

JPM US Dyn A (acc)–EUR (1) . 5 E ∑5.39 (z) –

JPM US Dyn A (acc)–USD (1) F . 5 $8.72 (z) –

JPM US Dyn A (dist)–USD (1) . 5 $12.02 (z) –

JPM US Growth A (acc)–EUR Hdg (1) F... 5 E ∑6.49 (z) –

JPM US Growth A (acc)–USD (1) F. 5 $11.13 (z) –

JPM US Growth A (dist)–GBP (1) F. 5 £5.53 (z) –

JPM US Growth A (dist)–USD (1) F. 5 $5.96 (z) –

JPM US Select 130/30 A (acc)–EUR Hdg (1) F 5 E ∑5.95 (z) –

JPM US Select 130/30 A (acc)–USD (1) F 5 $8.39 (z) –

JPM US Select 130/30 A (dist)–GBP (1) F 5 £5.75 (z) –

JPM US Select 130/30 A (dist)–USD (1) F 5 $8.53 (z) –

JPM US Sm Cap Grth A (acc)–EUR (1) F .. 5 E ∑54.89 (z) –

JPM US Sm Cap Grth A (dist)–GBP (1) F.. 5 £7.91 (z) –

JPM US Sm Cap Grth A (acc)–USD (1) F.. 5 $11.67 (z) –


JPMorgan Asset Management - Contd.JPM US Sm Cap Grth A (dist)–USD (1) . $80.35 (z) –

JPM US Value A (dist)–GBP (1) F 5 £11.66 (z) –

JPM US Value A (acc)–USD (1) F 5 $10.10 (z) –

JPM US Value A (dist)–USD (1) F 5 $12.61 (z) –

JPM US Dyn 130/30 A (acc)–EUR Hdg (1) F .. 5 E ∑5.87 (z) –

JPM US Dyn 130/30 A (acc)–USD (1) F .. 5 E $8.31 (z) –

JPM US Dyn 130/30 A (dist)–GBP (1) F .. 5 E £6.78 (z) –

JPM US Dyn 130/30 A (dist)–USD (1) F .. 5 E $103.01 (z) –

Equity Asia

JF ASEAN Equity A (acc)–SGD (1) F 5 S$13.48 (z) –

JF Asia Al+ A (acc)–USD (1) . $17.84 (z) –

JF Asia P ExJapEq A (dist)–GBP (1) F . 5 £15.07 (z) –

JF Asia P ExJapEq A (acc)–USD (1) F . 5 $15.12 (z) –

JF Asia P ExJapEq A (dist)–USD (1) . $38.46 (z) –

JF Asia P ExJapEq A (acc)–SGD (1) F . 5 E S$11.07 (z) –

JF China A (acc)–USD (1) F. 5 $21.41 (z) –

JF China A (acc)–SGD (1) F. 5 S$9.28 (z) –

JF China A (dist)–HKD (1) F. 5 E HK$8.13 (z) –

JF China A (dist)–USD (1) $34.70 (z) –

JF Greater China A (acc)–SGD (1) F... 5 S$11.49 (z) –

JF Greater China A (acc)–USD (1) F 5 $17.58 (z) –

JF Greater China A (dist)–HKD (1) F .. 5 E HK$9.39 (z) –

JF Greater China A (dist)–USD (1) F .. 5 $21.94 (z) –

JF Hong Kong A (acc)–USD (1) F 5 $13.69 (z) –

JF Hong Kong A (dist)–HKD (1) F .. 5 E HK$8.26 (z) –

JF Hong Kong A (dist)–USD (1) F 5 $35.91 (z) –

JF India A (acc)–SGD (1) F 5 S$12.41 (z) –

JF India A (acc)–USD (1) F 5 $21.63 (z) –

JF India A (dist)–USD (1) $63.62 (z) –

JF Japan Alpha Plus A (acc)–USD (1) F .. 5 $10.55 (z) –

JF Japan Alpha Plus A (dist)–USD (1) . 5 E $13.57 (z) –

JF Korea Eq A (acc)–USD (1) F .. 5 E $8.04 (z) –

JF Korea Eq A (acc)–EUR (1) F .. 5 E ∑5.95 (z) –

JF Korea Eq A (dist)–USD (1) F.. 5 E $8.38 (z) –

JF Singapore A (acc)–SGD (1) F. 5 S$13.73 (z) –

JF Japan Eq A (acc)–EUR (1) F.. 5 E ∑4.43 (z) –

JF Japan Eq A (dist)–GBP (1) F.. 5 £5.95 (z) –

JF Japan Eq A (acc)–JPY (1) .. 5 E Y406.00 (z) –

JF Japan Eq A (acc)–USD (1) F.. 5 $7.11 (z) –

JF Japan Eq A (dist)–USD (1) $17.97 (z) –

JF Japan Sm Cap A (acc)–USD (1) F.. 5 $6.80 (z) –

JF Japan Sm Cap A (dist)–USD (1) .. $6.48 (z) –

JF Pacific Eq A (acc)–EUR (1) F . 5 ∑7.58 (z) –

JF Pacific Eq A (dist)–GBP (1) F . 5 £11.21 (z) –

JF Pacific Eq A (acc)–USD (1) 5 $11.51 (z) –

JF Pacific Eq A (dist)–USD (1) .. $54.10 (z) –

JF Singapore A (acc)–USD (1) F. 5 $21.55 (z) –

JF Singapore A (dist)–USD (1) F 5 $27.90 (z) –

JF Taiwan A (acc)–EUR (1) F.. 5 E ∑13.07 (z) –

JF Taiwan A (acc)–USD (1) F . 5 $13.99 (z) –

JF Taiwan A (dist) HKD (1) F 5 E HK$10.78 (z) –

JF Taiwan A (dist)–USD (1) F . 5 $12.10 (z) –

JPM Japan Dyn A (acc)–JPY (1) F . 5 E Y367.00 (z) –

JPM Japan Dyn A (dist)–JPY (1) F . 5 E Y364.00 (z) –

JPM Japan 50 Eq A (acc)–EUR (hdg) (2) F 5 ∑72.42 (z) –

Equity Emerging Markets

JPM Brazil Equity A (acc)–USD (1) F .. 5 E $8.74 (z) –

JPM Brazil Equity A (acc)–SGD (1) F .. 5 E S$10.86 (z) –

JF Eastern Europe Eq A (dist)–EUR (1) F.. 5 ∑23.10 (z) –

JF Latin Am Eq A (dist)–USD (1) F . 5 $34.93 (z) –

JPM Eastern Europe Eq A (acc)–EUR (1) F 5 ∑14.20 (z) –

JPM Eastern Europe Eq A (acc)–USD (1) F 5 E $96.84 (z) –

JPM Eastern Europe Eq A (dist)–EUR (1)... ∑34.53 (z) –

JPM Em Eur MEA Eq A (acc)–EUR (1) F .. 5 E ∑12.96 (z) –

JPM Em Eur MEA Eq A (acc)–USD (1) F .. 5 $16.31 (z) –

JPM Em Eur MEA Eq A (dist)–USD (1) F .. 5 $46.06 (z) –

JPM Em Eur MEA Afr Eq A (acc)–SGD (1) F... 5 E S$11.09 (z) –

JPM Em MEA Eq A (acc)–SGD (1) F 5 E S$11.57 (z) –

JPM Em Mkt Alpha Pl A (dist)–GBP (1) F . 5 E £5.64 (z) –

JPM Em Mkt Alpha Pl A (acc)–USD (1) F . 5 E $11.78 (z) –

JPM Em Mkt Alpha Pl A (dist)–USD (1) F . 5 E $11.41 (z) –

JPM Em Mkt Corp Bd A (acc)–EUR Hdg (1) F . 3 E ∑83.52 (z) –

JPM Em Mkt Corp Bd A (acc)–USD (1) F . 3 E $106.01 (z) –

JPM Em Mkt Debt A (acc)–USD (1) F . 3 E $14.89 (z) –

JPM Em Mkt Eq A (dist)–GBP (1) F 5 £27.52 (z) –

JPM Em Mkt Eq A (acc)–EUR (1) F. 5 ∑10.73 (z) –

JPM Em Mkt Eq A (acc)–USD (1) F 5 $18.18 (z) –

JPM Em Mkt Eq A (dist)–USD (1) . $25.41 (z) –

JPM Em Mkt Infra Eq A (acc)–EUR (1) F .. 5 E ∑12.53 (z) –

JPM Em Mkt Infra Eq A (acc)–USD (1) F .. 5 E $6.74 (z) –

JPM Em Mkts Ccy Alpha A (acc)–EUR (1) F... 5 E ∑9.83 (z) –

JPM Em Mkts Lcl Cur Dbt A (dist)–EUR(1) F .. 3 E ∑92.60 (z) –

JPM Em Mkts Eq A (acc)–SGD (1) F .. 5 S$11.77 (z) –

JPM Em Mkt Sm Cap A (acc)–EUR (1) F .. 5 E ∑6.34 (z) –

JPM Em Mkts Loc Ccy Debt A (dist)–GBP (1) F 3 £80.41 (z) –

JPM Em Mkts Loc Ccy Debt A (mth)–USD (1) F 3 $14.80 (z) –

JPM Em Mkt Sm Cap A (dist)–GBP (1) F.. 5 E £5.07 (z) –

JPM Em Mkt Sm Cap A (acc)–USD (1) F.. 5 E $8.55 (z) –

JPM Europe Conv Eq A (dist)–EUR (1) F .. 5 ∑15.65 (z) –

JPM Latin Am Eq A (acc)–USD (1) F .. 5 $25.89 (z) –

JPM Latin Am Eq A (dist)–USD (1) $48.29 (z) –

JPM Latin Am Eq A (acc)–SGD (1) F .. 5 E S$11.46 (z) –

JPM Russia A (acc)–USD (1) F 5 E $10.55 (z) –

JPM Russia A (dist)–USD (1) F .. 5 E $10.35 (z) –

Equity Europe

JF Euroland Eq A (dist)–USD (1) F . 5 $5.74 (z) –

JF Europe Dynamic A (dist)–EUR (1) ∑10.80 (z) –

JF Europe Eq A (dist)–USD (1) F 5 $27.43 (z) –

JF Europe Sm Cap A (dist)–EUR (1) F . 5 ∑8.57 (z) –

JF Germany Eq A (dist)–EUR (1) F . 5 ∑15.22 (z) –

JPM Euroland Eq A (acc)–EUR (1) F... 5 ∑7.51 (z) –

JPM Euroland Eq A (dist)–EUR (1) ∑23.72 (z) –

JPM Euroland Eq A (inc)–EUR (1) F 5 E ∑4.21 (z) –

JPM Europe Conv Eq A (acc)–EUR (1) F .. 5 ∑11.02 (z) –

JPM Europe Dyn A (dist)–EUR (1) F 5 ∑9.45 (z) –

JPM Europe Dyn A (acc)–EUR (1) F 5 ∑10.30 (z) –

JPM Europe Dyn A (dist)–GBP (1) F 5 £12.55 (z) –

JPM Europe Dyn Mega Cap A (acc)–EUR (1) .. 5 E ∑7.39 (z) –

JPM Europe Dyn Mega Cap A (acc)–USD (1) F 5 E $7.65 (z) –

JPM Europe Dyn Mega Cap A (inc)–EUR (1) F . 5 ∑5.90 (z) –

JPM Europe Dyn Mega Cap A (dist)–EUR (1) F 5 E ∑5.69 (z) –

JPM Europe Dyn Sm Cap A (dist)–EUR (1) F .. 5 E ∑9.00 (z) –

JPM Europe Dyn Sm Cap A (acc)–EUR (1) 5 E ∑14.85 (z) –

JPM Europe Eq A (acc)–EUR (1) F . 5 ∑7.99 (z) –

JPM Europe Eq A (dist)–EUR (1) .. ∑24.82 (z) –

JPM Europe Eq A (cap)–USD (1) F . 5 $10.34 (z) –

JPM Europe Focus A (acc)–EUR (1) F . 5 ∑7.12 (z) –

JPM Europe Focus A (acc)–USD (1) F . 5 E $8.89 (z) –

JPM Europe Focus A (dist)–EUR (1) F . 5 E ∑6.20 (z) –

JPM Europe Micro Cap A (acc)–EUR (1) F 5 E ∑9.29 (z) –

JPM Europe Micro Cap A (dist)–EUR (1) F 5 E ∑9.24 (z) –

JPM Europe 130/30 A (acc)–EUR (1) F 5 E ∑6.42 (z) –

JPM Europe 130/30 A (acc)–USD (1) F ... 5 E $9.47 (z) –

JPM Europe Sel 130/30 A (acc)–EUR (1) F 5 E ∑5.79 (z) –

JPM Europe Sel 130/30 A (acc)–USD (1) F ... 5 E $8.78 (z) –

JPM Europe Sel 130/30 A (dist)–EUR (1) F ... 5 E ∑7.81 (z) –

JPM Europe Sel 130/30 A (dist)–GBP (1) F ... 5 E £4.65 (z) –

JPM Europe Sm Cap A (acc)–EUR (1) F .. 5 ∑10.39 (z) –

JPM Europe Sm Cap A (dist)–EUR (1) .. ∑28.81 (z) –

JPM Europe Sm Cap A (dist)–GBP (1) F .. 5 £12.47 (z) –

JPM Europe Strat Grth A (acc)–EUR (1) F . 5 ∑10.17 (z) –

JPM Europe Strat Grth A (dist)–EUR (1) F . 5 ∑6.36 (z) –

JPM Europe Strat Grth A (dist)–GBP (1) F. 5 £10.14 (z) –

JPM Europe Strat Val A (dist)–EUR (1) F .. 5 ∑8.31 (z) –

JPM Europe Strat Val A (acc)–EUR (1) F .. 5 ∑7.36 (z) –

JPM Europe Strat Val A (dist)–GBP (1) F.. 5 £11.09 (z) –

JPM Europe 130/30 A (dist)–EUR (1) F 5 E ∑5.94 (z) –

JPM Europe 130/30 A (dist)–GBP (1) F ... 5 E £5.23 (z) –

JPM Germany Eq A (dist)–EUR (1) F. ∑6.02 (z) –

JPM Germany Eq A (acc)–EUR (1) F .. 5 ∑11.71 (z) –

JPM Global Dyn A (acc)–SGD (1) F 5 S$12.11 (z) –

JPM High Eur STEEP A (dist)–GBP (1) F .. 5 E £7.96 (z) –

JPM High Eur STEEP A (acc)–EUR (1) F .. 5 E ∑8.70 (z) –

JPM High Eur STEEP A (acc)–USD (1) F .. 5 E $11.78 (z) –

JPM High Eur STEEP A (inc)–EUR (1) F 5 E ∑8.27 (z) –

JPM H US STEEP A (dist)–GBP (1) F .. 5 E £9.78 (z) –

JPM UK Eq A (acc)–GBP (1) F. 5 £9.64 (z) –

JPM UK Eq A (dist)–GBP (1) £6.17 (z) –

Equity Global

JF Gbl Dyn A (dist)–USD (1) F. 5 $10.94 (z) –

JF Gbl Eq (USD) A (dist)–USD (1) F. 5 $30.06 (z) –

JPM Gbl Dyn A (dist)–GBP (1) F . 5 £10.90 (z) –

JPM Gbl Dyn A (acc)–USD (1) F . 5 $10.09 (z) –

JPM Gbl Dyn A (dist)–USD (1) F . 5 $11.87 (z) –

JPM Gbl Dyn A (acc)–EUR (1) F . 5 E ∑5.58 (z) –

JPM Gbl Dyn A (acc)–CHF (hdg) (1) F . 5 E SFr97.96 (z) –

JPM Gbl Dyn A (acc)–EUR Hdg (1) F .. 5 E ∑4.40 (z) –

JPM Gbl Dyn A (acc)–SGD (Hdg) (1) F. 5 S$9.57 (z) –

JPM Gbl Dyn A (inc)–EUR (1) F.. 5 ∑5.69 (z) –

JPM Gbl Eq (USD) A (acc)–EUR (1) F .. 5 E ∑58.68 (z) –

JPM Gbl Eq (USD) A (acc)–USD (1) F.. 5 $8.93 (z) –

JPM Gbl Eq (USD) A (acc)–EUR Hdg (1) F . 5 E ∑4.94 (z) –

JPM Gbl Eq (USD) A (dist)–USD (1).. $17.38 (z) –

JPM Gbl Eq (USD) A (dist)–EUR Hdg (1) F . 5 E ∑4.70 (z) –

JPM Gbl Focus A (acc)–EUR (1) F.. 5 ∑12.76 (z) –

JPM Gbl Focus A (dist)–EUR (1) . 5 ∑17.18 (z) –

JPM Gbl Real Estate Sec (USD) A (acc)–EUR Hdg (1) F 5 E ∑4.71 (z) –

JPM Gbl Real Estate Sec (USD) A (acc)–USD (1) F 5 E $7.07 (z) –

JPM Gbl Real Estate Sec (USD) A (inc)–EUR Hdg (1) F 5 E ∑4.34 (z) –

JPM Gbl Sel Eq A (acc)–USD (2) F . 5 E $125.80 (z) –

JPM Gbl Sel Eq A (dist)–USD (2) F . 5 E $85.59 (z) –

JPM Gbl Soc Resp A (acc)–USD (1) F . 5 $8.12 (z) –

JPM Gbl Soc Resp A (dist)–USD (1) F . 5 $4.86 (z) –

Equity Sector

JF Europe Tech A (dist)–EUR (1) F . 5 ∑4.23 (z) –

JF Pacific Tech A (acc)–EUR (1) F . 5 E ∑10.30 (z) –

JF Pacific Tech A (acc)–USD (1) F . 5 $13.15 (z) –

JF Pacific Tech A (dist)–USD (1) F . 5 $8.54 (z) –

JF Pacific Tech A (dist)–GBP (1) F . 5 £10.36 (z) –

JF US Tech A (dist)–USD (1) F 5 $1.83 (z) –

JPM Europe Tech A (acc)–EUR (1) F .. 5 ∑12.12 (z) –


JPMorgan Asset Management - Contd.JPM Europe Tech A (dist)–EUR (1) F ∑7.82 (z) –

JPM Europe Tech A (dist)–GBP (1) F .. 5 £6.52 (z) –

JPM Gbl Cons Trends A (acc)–EUR (1) F.. 5 E ∑10.64 (z) –

JPM Gbl Cons Trends A (acc)–USD (1) F . 5 E $14.10 (z) –

JPM Gbl Focus A (acc)–CHF (hdg) (1) F .. 5 E SFr116.00 (z) –

JPM Gbl Focus A (acc)–EUR Hgd (1) F 5 E ∑7.11 (z) –

JPM Gbl Natural Res A (dist)–EUR (1) F .. 5 ∑16.11 (z) –

JPM Gbl Natural Res A (acc)–EUR (1) F .. 5 ∑18.70 (z) –

JPM Gbl Natural Res A (acc)–USD (1) F .. 5 E $15.49 (z) –

JPM US Tech A (acc)–EUR (1) F. 5 ∑87.65 (z) –

JPM US Tech A (dist)–GBP (1) F 5 £1.66 (z) –

JPM US Tech A (acc)–USD (1) F 5 $12.52 (z) –

JPM US Tech A (dist)–USD (1) F 5 $6.33 (z) –

Equity Africa

JPM Africa Eq A (acc)–EUR (1) F 5 E ∑13.86 (z) –

JPM Africa Eq A (acc)–USD (1) F 5 E $8.77 (z) –

JPM Africa Eq A (dist)–GBP (1) F 5 E £6.24 (z) –

JPM Africa Eq A (inc)–EUR (1) F 5 E ∑55.87 (z) –

Bonds Broad Market

JPM Agg Bd A (acc)–USD (1) F.. 3 E $11.13 (z) –

JPM Euro Agg Bd A (acc)–EUR (1) F .. 3 E ∑10.71 (z) –

JPM Gbl Agg Bd A (acc)–USD (1) F 3 $12.09 (z) –

JPM Gbl Agg Bd A (dist)–USD (1). $13.12 (z) –

JPM Gbl Cath Eth Balanced A (acc)–EUR (1) F . ∑91.73 (z) –

JPM Gbl Conv (EUR) A (acc)–CHF Hdg (1) F .. 5 E SFr19.65 (z) –

JPM Gbl Conv (EUR) A (dist)–GBP Hdg (1) F .. 5 E £10.70 (z) –

JPM Gbl Div A (acc)–EUR (1) F .. 5 ∑66.34 (z) –

Bonds Extended Market

JPM EU Gov Bd A (acc)–EUR (1) F . 3 E ∑11.48 (z) –

JPM Gbl Conv (EUR) A (acc)–EUR (1) F 5 ∑11.01 (z) –

JPM Gbl Conv (EUR) A (dist)–EUR (1) F 5 ∑9.54 (z) –

Balanced

JPM Gbl Nat Resources Fd (1) F 5 S$19.47 (z) –

JPM H US STEEP A (acc)–EUR Hdg (1) F . 5 E ∑10.65 (z) –

(1) JPMorgan Funds

(2) JPMorgan Investment Funds

Jefferies Bache Limited (LUX)9 Devonshire Square, London, EC2M 4HP Tel: +44 (0) 20 7548 4000

Regulated

Bache Global Series (BGS)

BGS Commodity Index –AI– (USD) $79.50 83.48 ..... –

BGS Commodity Index –AI– Ann. Distr. (USD) .. $98.47 103.39 ..... –

BGS Commodity Index –BI– Ann. Distr. (EUR) .. ∑102.8 102.8 ..... –

Jefferies Umbrella Fund (LUX)11 Rue Aldringen, L–1118 Luxembourg 00 352 468193626

FSA Recognised

Europe Convertible Bd A (Dis) – D – EUR* F ∑10.94 ..... –

Europe Convertible Bd B (Cap) . ∑11.92 ..... –

Global Convertible A (Dis) F $17.14 ..... –

Global Convertible B (Cap) F . $19.9 ..... –

Global Convertible A Hdg GBP(Dis) F £11.03 ..... –

Global Convertible B Hdg GBP (Cap) F.. £12.69 ..... –

Global Convertible Hdg A (Cap) F . $16.31 ..... –

Global Convertible B Hdg (Dis) F.. $18.96 ..... –

Global Convertible A Hdg EUR(Dis) F ∑13.7 ..... –

Global Convertible B Hdg EUR (Cap) F.. ∑14.53 ..... –

Global Convertible A Hdg CHF (Dis) F .. SFr19.94 ..... –

Global Convertible B Hdg CHF (Cap) F.. SFr21.59 ..... –

Jubilee Financial Products LLPOther International Funds

Jubilee Emerging Europe Momentum Fund ∑99.81 ..... –

Swiss & Global Asset Management (LUX)funds@swissglobal–am.com, www.jbfundnet.com

Regulated

JB BF ABS–EUR/A .......... ∑76.23 ..... –

JB BF Absolute Ret Def–EUR/A . ∑104.86 ..... –

JB BF Absolute Ret Def–GBP/A . £104.23 ..... –

JB BF Absolute Ret EM–CHF.. SFr98.89 ..... –

JB BF Absolute Ret EM–EUR/A . ∑104.92 ..... –

JB BF Absolute Ret EM–USD/A . $102.74 ..... –

JB BF Absolute Ret Pl–EUR/A ∑101.65 ..... –

JB BF Absolute Ret Pl–GBP/A £107.02 ..... –

JB BF Absolute Ret Pl–USD/A $106.84 ..... –

JB BF Absolute Return GBP/A £105.5 ..... –

JB BF Absolute Return–GBP/B.. £117.01 ..... –

JB BF Absolute Return–EUR/A .. ∑100.74 ..... –

JB BF Absolute Return–USD/A.. $102.79 ..... –

JB BF Cred Opportunities–EUR/B . ∑138.11 ..... –

JB BF Credit Opportunities–USD .. $96.88 ..... –

JB BF Dollar Med Term–USD/A. $122.01 ..... –

JB BF EM Infl Linked–CHF/A.. SFr90.89 ..... –

JB BF EM Infl Linked–EUR/A.. ∑91.31 ..... –

JB BF EM Infl Linked–GBP/A . £88.87 ..... –

JB BF EM Infl Linked–USD/A . $91.38 ..... –

JB BF Dollar–USD/A ....... $115.78 ..... –

JB BF Emerging–EUR/A.. ∑124.78 ..... –

JB BF Emerging–USD/A . $143.46 ..... –

JB BF Euro Government–EUR/A ∑106.69 ..... –

JB BF Euro–EUR/A.......... ∑119.16 ..... –

JB BF Global Convert–EUR/A . ∑63.01 ..... –

JB BF Global High Yield–EUR/A. ∑102.09 ..... –

JB BF Global High Yield GBP/A . £91.52 ..... –

JB BF Global High Yield–USD/A $109.86 ..... –

JB BF Inflation Linked–CHF/B SFr101.32 ..... –

JB BF Local Emerging–CHF/A SFr94.58 ..... –

JB BF Local Emerging–EUR/A ∑97.89 ..... –

JB BF Local Emerging–GBP/A £107.53 ..... –

JB BF Local Emerging–USD/A $130.37 ..... –

JB BF Swiss Franc–CHF/B SFr182.4 ..... –

JB BF Total Return–CHF . SFr97.59 ..... –

JB BF Total Return–EUR/A ∑44.63 ..... –

JB Commodity–EUR/A .... ∑75.8 ..... –

JB Commodity–EUR/B .... ∑86.29 ..... –

JB Commodity–USD/A.... $85.14 ..... –

JB Commodity–USD/B.... $97.04 ..... –

JB EF Abs Ret Europe–EUR/A ∑110.57 ..... –

JB EF Abs Ret Europe–EUR/B ∑110.49 ..... –

JB EF Asia–USD/A.......... $100.14 ..... –

JB EF Biotech–USD/A..... $101.89 ..... –

JB EF Black Sea–EUR/A . ∑27.46 ..... –

JB EF Black Sea–USD/A . $27.69 ..... –

JB EF Central Europe–EUR/A . ∑168.02 ..... –

JB EF Chindonesia–USD/A $73.37 ..... –

JB EF Chindonesia–USD/B $73.36 ..... –

JB EF Energy Transition–EUR/B ∑105.07 ..... –

JB EF Energy Transition–USD/B $111.87 ..... –

JB EF Euro Large Cap–EUR. ∑82.35 ..... –

JB EF Euroland Value–EUR/A . ∑83.22 ..... –

JB EF Europe Sel.Fd–EUR/A ∑48.6 ..... –

JB EF Europe S&Mid Cap–EUR/A . ∑88.33 ..... –

JB EF Europe–EUR/A ...... ∑139.37 ..... –

JB EF Global–EUR/A ....... ∑55.59 ..... –

JB EF German Value–EUR/A ∑121.75 ..... –

JB EF Gl Emerging Mkts–EUR/A ∑61.08 ..... –

JB EF Health Opport – USD/A $99.96 ..... –

JB EF Health Opport–USD/B $99.9 ..... –

JB EF Japan–JPY/A........ Y7016 ..... –

JB EF Luxury Brands–EUR/A.. ∑135.96 ..... –

JB EF Luxury Brands–USD/A . $124.24 ..... –

JB EF Luxury Brands–GBP/B . £88.8 ..... –

JB EF Special Val. EUR/A ∑88.9 ..... –

JB EF Swiss S&Mid Cap–CHF/B SFr315.91 ..... –

JB EF US Leading–USD/A . $239.03 ..... –

JB EF US Value–USD/A... $102.18 ..... –

JB Strategy Balanced–CHF/B. SFr120.95 ..... –

JB Strategy Balanced–EUR . ∑117.81 ..... –

JB Strategy Balanced–USD/B $105.46 ..... –

JB Strategy Inc–CHF/B ... SFr106.08 ..... –

JB Strategy Inc–EUR/B ... ∑131.83 ..... –

JB Strategy Inc–USD/B... $128.21 ..... –

JB Strategy Growth–CHF/B . SFr70.52 ..... –

JB Strategy Growth–EUR ∑80.76 ..... –

Jupiter Asset Mngt (Bermuda) LtdOther International Funds

Jupiter Europa Hedge Ltd EUR (Est) Sep 16 ∑161.7555 ..... –

Jupiter Europa Hedge Ltd USD (Est) Sep 16 $218.1756 ..... –

Jupiter Financials Hedge Fund Ltd (Est) $104.63 ..... –

Jupiter Hyde Park Hedge Ltd GBP (Est) Sep 16 . £145.50 –2.18 –

Jupiter Hyde Park Hedge Ltd USD (Est) Sep 16 . $4.78 –0.07 –

Jupiter Hyde Park Hedge Ltd EUR (Est) Sep 16 . ∑139.99 –2.16 –

Managed funds service




Kairos Investment Management Ltd (CYM)Regulated

Kairos Equity E1 (Est) Jan 7 ∑1654.09 ..... –

Kairos Equity E2 (Est) Sep 16. ∑1171.17 ..... –

Kairos Eurasian Fund A–EUR (Final) Aug 31 ∑59.9407 ..... –

Kairos Eurasian Fund B–USD (Final) Aug 31 $60.5922 ..... –

Kairos Fund Ltd A–EUR (Est) Sep 16. ∑251.0496 ..... –

Kairos Fund Ltd B–USD (Est) Sep 16 $133.7785 ..... –

Kairos Fund Ltd C–EUR (Est) Sep 16. ∑254.4147 ..... –

Kairos Fund Ltd D–USD (Est) Sep 16 $134.8592 ..... –

Kairos Low Volatility E1 (Est) Sep 16 ∑1609.40 ..... –

Kairos Low Volatility E2 (Est) Sep 16 ∑1209.54 ..... –

Kairos Low Volatility D2 (Est) Sep 16 $1167.37 ..... –

Kairos Medium Term Fund Ltd E1 (Est) . ∑104.99 ..... –

Kairos Medium Term Ltd E2 (Est) Sep 16 .. ∑100.26 ..... –

Kairos Multi Strategy E1 (Est) Sep 16 ∑1660.28 ..... –

Kairos Multi Strategy E2 (Est) Sep 16 ∑1247.32 ..... –

Kairos Multi Strategy D1 (Est) Sep 16 .. $1766.17 ..... –

Kairos Multi Strategy D2 (Est) Sep 16 .. $1305.55 ..... –

Kairos Opportunity E2 (Est) Sep 16 .. ∑146.3927 ..... –

Kairos Opportunity D2 (Est) Sep 16 .. $151.4460 ..... –

Key Asset ManagementOther International Funds

Key Hedge (Est) Sep 16 .. $419.81 ..... –

Key Europe Inc (Est) Sep 16 ∑172.85 ..... –

Key Recovery (Est).......... $168.27 ..... –

Key Global Inc (Est) Sep 16 . $579.59 ..... –

Key Trading (Est) Sep 16 $103.79 ..... –

Kleinwort Benson (CI) Fd Svcs Ltd (GSY)Regulated

Kleinwort Benson Elite PCC Ltd Range

Elite Multi–Asset Growth Fund A Income Shares £1.0338 1.0361 –0.0658 0

Elite Multi–Asset Growth Fund A Reinvest Shares £1.0338 1.0361 –0.0658 0

Elite Multi–Asset Growth Fund C Shares £1.0097 1.0114 ..... 0

Elite Universal Alpha Fund Ltd £1.2565 1.2571O –0.029 0

Elite Multi–Asset Conservative Fund A Income Shares £1.0502 1.0549O –0.0451 0.7097

Elite Multi–Asset Conservative Fund A Reinvest Shares £1.0502 1.0549O –0.0451 0.7097

Elite Multi–Asset Conservative Fund B Shares.. £1.0258 1.0304O –0.0442 0.7097

Elite Multi–Asset Balanced Fund A Income Shares £1.2502 1.2556 –0.0698 0

Elite Multi–Asset Balanced Fund A Reinvest Shares £1.2502 1.2556 –0.0698 0

Elite Multi–Asset Balanced Fund B Shares . £1.2101 1.2153 –0.0678 0

Elite Multi–Asset Balanced USD Fund A Income Shares $1.0172 1.0184 –0.0689 0

Elite Multi–Asset Balanced USD Fund B Shares (Susp) $0.8927 0.9021 ..... –

Elite Sterling Income Fund £11.0937 11.1297O +0.758 2.77

Lansdowne Partners Limited PartnershipOther International Funds

Lansdowne European Equity Fund Ltd

A Class EUR Aug 31 ....... ∑178.0345 ..... –

A Class USD Aug 31 ....... $175.5550 ..... –

B Class USD Ser 1 Aug 31 $183.9232 ..... –

B Class EUR Ser 1 Aug 31 ∑173.1038 ..... –

Lansdowne UK Equity Fund Ltd

UK Equity EUR Aug 31 .... ∑370.5847 ..... –

UK Equity GBP Aug 31 .... £415.3773 ..... –

UK Equity USD Jul 29 ..... $375.2971 ..... –

Lansdowne Global Financials Fund Ltd

EUR Restricted Aug 31 ... ∑227.3728 ..... –

EUR Non–Restricted Aug 31 ∑235.6031 ..... –

USD Restricted Aug 31 ... $236.9460 ..... –

USD Non–Restricted Aug 31.. $246.2672 ..... –

GBP Restricted Aug 31 ... £241.2014 ..... –

GBP Non–Restricted Aug 31 £252.7565 ..... –

Lansdowne European Long Only Feeder Fund Limited

USD Absolute Class Aug 31 $89.4141 ..... –

GBP Absolute Class Series 101 Aug 31 . £103.9349 ..... –

EUR Absolute Class ........ ..... –

USD Relative Class Aug 31 . $97.5130 ..... –

GBP Relative Class Aug 31.. £97.6566 ..... –

EUR Relative Class Aug 31 ∑96.8333 ..... –

Lansdowne Global Long Only Fund Limited

CHF Relative Class ......... SFr89.9395 ..... –

EUR Absolute Class ........ ∑90.2152 ..... –

EUR Relative Class ......... ∑90.2090 ..... –

GBP Absolute Class Series 1.. £93.1056 ..... –

GBP Relative Class ......... £90.1080 ..... –

USD Absolute Class Series 1 . $92.9998 ..... –

USD Relative Class ......... $91.7837 ..... –

Euro Long Only Feeder Absolute Legacy Shares Euro Series 1 Aug 31 ∑173.3110 ..... –

Euro Long Only Feeder Absolute Legacy Shares GBP Sreies 1 Aug 31 £184.0274 ..... –

Euro Long Only Feeder Absolute Legacy Shares USD Series 1 Aug 31 $181.0120 ..... –

Laxey Partners LtdOther International Funds

Terra Catalyst Fund Sep 16. £0.8300 ..... –

Lazard Fund Managers (Ireland) Ltd (IRL)IDA Business Park, Drinagh, Wexford Town, Co Wexford, Ireland 353 53 91 49888

FSA Recognised

Lazard Global Active Fund Plc

Lazard European Equity F 5 ∑1.4936 +0.0836 1.39

Lazard Pan European F 5 ∑0.8305 +0.0405 0.17

Lazard Japanese Equity F 5 Y51.4395 –0.8505 0.69

Lazard Japanese Equity Inst. JPY Inc F .. 0 Y52.3688 –0.8712 0

Lazard Japanese Equity X JPY Acc F . 0 Y53.1035 –0.8765 0

Lazard North American Equity F 5 $1.1935 +0.0035 0

Lazard Emerging World F. 5 $21.8628 –0.2372 0

Global High Quality Bond F . 5 $139.8148 –0.9852 2.64

Sterling High Quality Bd F 5 £111.3368 –0.8332 2.67

Sterling High Quality Bd Instl £112.4214 –0.8386 3.33

Lazard UK Equity F ...... 5 £1.5918 +0.0418 0.83

Lazard Thematic Global Ex–Japan X NAV ... 7 $169.2155 (z) 1.47

Thematic Global Fund Institutional Class . 7 $130.0998 –0.2502 0.8

Thematic Global Fund Institutional Sterling Class F 0 £83.9470 –0.393 0.78

Lazard Global Classic Value Equity Institutional F 0 $8.5616 –0.0384 0.93

Emerging World Fund Inst Acc F 0 $22.1828 –0.2372 0

Lazard Developing Markets Equity Institutional Euro Dist. F ∑7.7135 –0.0065 0

Lazard Developing Markets Equity Institutional US$ Dist. F ..... –

Lazard Developing Markets Equity Institutional US$ Acc F 0 $7.1747 –0.0353 0

Lazard Classic Value Equity Fund US$ Inst Acc F $8.5275 –0.0325 0

Lazard European Equity Fund US$ Inst Acc F .. $0.7467 +0.0367 0

Lazard Global High Quality Bond Fund US$ Inst Acc F $135.1039 –0.9561 0

Lazard Japanese Equity Fund US$ Inst Acc F .. $9.7209 –0.1791 0

Lazard Thematic Global Fund US$ Inst Acc F .. $127.3740 –0.246 0

Lazard Global Classic Value Equity Institutional Stg Acc F 0 £9.9075 –0.0725 0

Lazard Global Classic Value Equity Institutional Stg dist F 0 ..... –

Lazard Global Portfolio Funds

Lazard Global Listed Infrastructure Sterling Fund F £0.7092 (z) –

Lazard Global Investment Funds

Emerging Markets Bond Fund Euro Hedged Inst Acc F 0 ∑97.0891 –1.0969 –

Emerging Markets Bond Fund USD Inst Acc F 0 $96.9389 –1.107 –

Emerging Markets Local Debt Fund Euro Hedged Inst Acc F 0 ∑93.5136 +0.4798 –

Emerging Markets Local Debt Fund USD Inst Acc F 0 $93.7345 +0.4677 –

Emerging Markets Local Debt GBP HEDG INST DIST F 0 ..... –

Emerging Markets Total Return Debt Fund Euro Hedged Inst Acc F 0 ∑97.4895 –0.5057 –

Emerging Markets Total Return Debt Fund USD Inst Acc F 0 $97.3709 –0.5168 –

Emerging Markets Total Return debt Euro Hdgd Inst Acc B Cls F 0 ∑97.3475 –0.5012 –

Emerging Markets Total Return debt Euro Hedged Retail Acc F 0 ∑95.701 –0.4978 –

Emerging Markets Total Return debt STG HDG INST ACC F 0 £95.6932 –0.4835 –

Legg Mason Dublin Funds (IRL)Rochestown, Drinagh, Wexford, Ireland

http://funds.ft.com/funds/LeggMason

FSA Recognised

Legg Mason Global Funds PLC

Equity Funds

BFM Asia Pacific Equity A dis(A) 5 $173.41 ..... –

BFM Emerging Markets Eq Pr dis(A) .. 5 $67.65 ..... –

BFM European Equity A dis(A) 5 C ∑93.61 +0.55 1.73

BFM Intl Large Cap A dis(A) 5 $57.63 +0.31 –

CBA US Aggressive Growth A dis(A) .. 5 $86.67 +0.5 –

CBA US Appreciation A dis(A). 5 $87.12 +0.34 –

CBA US Fundamental Value A dis(A) .. 5 $69.82 +0.37 –

CBA US Large Cap Growth A dis(A) 5 $88.99 +0.53 –

LM Batterymarch Gbl Equity Fd . 5 $84.67 +0.48 0.44

GC Global Equity A dis(A) . 5 $74.46 +0.51 –

LM CM Growth A dis(A).. 5 $70.88 +0.65 –

LM CM Opportunity A dis(A) 5 $137.37 +1.72 –

LM CM Value A dis(A) .... $94.15 +0.77 –

LM Permal Gl Absolute A dis(A) . 5 $98.61 ..... –

LMHK China Fund A dis . 5 $84.06 +1.66 0.13

Royce Global Smaller Companies A dis .. 5 $109.93 ..... –

Royce Smaller Companies A dis(A) 5 $152.33 +0.88 –

Royce US Small Cap Opp A dis(A) . 5 C $225.27 +2.19 –


Legg Mason Dublin Funds - Contd.Fixed Income Funds

BW Global Fixed Inc A dis(S) .. 5 $129.54 +0.36 –

WA Asian Opportunities A dis(D) 5 $116.03 +0.26 –

WA Div Strategic Income A dis(D) . 5 $89.14 ..... –

WA Emerging Markets Bd A dis(D). 5 $112.86 ..... –

WA Euro Core Plus Bd A dis(D).. 5 C ∑88.48 ..... –

WA Gl Blue Chip Bd A dis(M).. 5 $103.85 ..... –

WA Gl Credit Abs Ret Fd A dis 5 $98.59 ..... 1.52

WA Global High Yield A dis(D) 5 $78.99 ..... –

WA Gl Multi Strategy A dis(D) C $118.91 ..... –

WA Inflation Mgmt A dis(A) . 5 $114.84 ..... –

WA US Adjustable Rate A cap 5 $95.38 ..... –

WA US Core Bond A dis(D).. 5 C $95.80 ..... –

WA US Core Plus Bond A dis(D) . 5 $106.23 ..... –

WA US High Yield A dis(D) 5 $78.55 ..... –

WA US Short Term Govt A dis(D) 5 $102.49 ..... –

Money Market Funds

WA US Money Market A dis(D) .. 5 $1.00 ..... –

Legg Mason Luxembourg Funds (LUX)145 Rue du Kiem, L–8030 Strassen

http://funds.ft.com/funds/LeggMason

FSA Recognised

Other classes available: Class C, Class I

Equity Funds

LM Emerg. Markets Eq A Ord. 5 $269.16 ..... –

LM Eurold Eq.A Euro Cap . 5 E ∑77.06 ..... –

Money Funds

LM Eurold Cash A Euro Cap 5 E ∑134.37 ..... –

Asset Allocation Funds

LM M–Man.Bal A Cap Euro. 5 E ∑105.66 ..... –

LM M–Man.Bal A Cap USD . 5 E $104.1 ..... –

LM M–Man Cons A Cap Euro . 5 E ∑107.2 ..... –

LM M–Man Cons A Cap USD . 5 E $111.79 ..... –

LM M–Man Perf A Cap Euro 5 E ∑104.83 ..... –

LM M–Man Perf A Cap USD 5 E $100.41 ..... –

LEHNER INVESTMENTS (GER)lehnerinvestments.com

Regulated

MultiLeadersFund .......... ∑97.83 ..... –

Leumi Global Managers Fund (LUX)Regulated

LGM Equity USD ............. $104.13 ..... –

LGM Equity EUR ............. ∑93.05 ..... –

LGM Equity P USD .......... $72.35 ..... –

LGM Conservative 80/20 USD $132.03 ..... –

LGM Conservative 80/20 Euro ∑121.62 ..... –

LGM Conservative 80/20 Global $134.70 ..... –

LGM Dynamic Equity Sub–Fund $108.76 ..... –

LGM Dynamic Fixed Income $161.80 ..... –

LGM European Equity ..... ∑55.82 ..... –

Liongate Capital Management (CYM)www.liongate.com

Regulated

Liongate Multi–Strategy Fund

Class A1 (Final) .............. $1814.91 ..... –

Class B1 (Final) .............. ∑1769.50 ..... –

Class C1 (Final) .............. £1834.79 ..... –

Class D1 (Final) .............. Y124335.49 ..... –

Class E1 (Est) ................. SFr1645.17 ..... –

Class F1 (Final)............... SKr984.21 ..... –

Liongate Commodities Fund

Class A (Est) ................... $1120.50 ..... –

Class B (Est) ................... ∑1092.40 ..... –

Class C (Est) ................... £1041.80 ..... –

Lloyd George ManagementOther International Funds

LG Antenna Fd Ltd Sep 16 $62.72 ..... –

LG Asian Natural Resources Sep 23 . $28.37 ..... –

LG Asian Plus Ltd Sep 16 . $55.72 ..... –

LG Asian Smaller Cos Sep 23 $85.2764 ..... –

LG India Fd Ltd Sep 22 ... $53.45 ..... –

Lloyds TSB Offshore Fd Mgrs (1000)F (JER)PO Box 311, 11–12 Esplanade, St Helier, Jersey, JE4 8ZU. 01534 845555

FSA Recognised

Lloydstrust Gilt .............. £12.21 +0.0300 3.07

Lloyds TSB Offshore Funds Ltd

Capital Growth .............. £1.576 +0.0040 1.55

Euro High Income.......... ∑1.467 –0.0120 5.47

European ...................... £5.438 +0.0120 1.80

High Income.................. £0.8140 –0.0035 6.17

International .................. £2.857 –0.0110 0.58

North American ............. £9.142 +0.0250 0.00

Sterling Bond ................ £1.320 –0.0040 4.76

UK................................. £5.471 +0.0230 2.03

Lloyds TSB Offshore Gilt Fund Ltd

Lloyds TSB Gilt Fund Quarterly Share .. £1.266 +0.0040 3.25

Monthly Share............... £1.219 +0.0040 3.25

Lloyds TSB Money Fund Ltd

Australian Dollar.......... 0 A$161.629 +0.0500 3.72

Euro ............................ 0 ∑52.961 +0.0030 0.79

New Zealand Dollar ..... 0 NZ$198.008 +0.0250 1.58

Sterling Class .............. 0 £52.295 +0.0010 0.22

US Dollar Class............ 0 $60.958 ..... 0.00

Lloyds TSB Offshore Multi Strategy Fund Ltd

Conservative Strategy ... C £0.9854 –0.0011 3.41

Growth Strategy ............ C £1.106 –0.0040 1.83

Aggressive Strategy ...... C £1.142 –0.0060 0.16

Global USD Growth Strategy . $0.8767 +0.0013 0.00

Dealing daily

Lombard Odier Darier Hentsch (LUX)Queensberry House 3 Old Burlington Street London W1S 3AB

Lombard Odier Funds

FSA Recognised

1798 Optimum Trend (EUR) P A .. ∑12.0293 ..... –

1798 Tactical Alpha (CHF) P A F 5 SFr10.2384 ..... –

1798 Tactical Alpha (EUR) P A F 5 ∑10.3732 ..... –

1798 Tactical Alpha (USD) P A F 5 $14.8125 ..... –

Alpha Japan (EUR) P A F ∑6.0757 ..... –

Alpha Japan (CHF) P A F SFr7.7137 ..... –

Alpha Japan (JPY) P A F Y698 ..... –

Alpha Japan (USD) P A F.. $8.6027 ..... –

Alternative Beta P A F.. 5 SFr115.3216 ..... –

Alternative Beta P A F.... ∑76.6147 ..... –

Alternative Beta P A F.. 0 $112.672 ..... –

BBB–BB Bond CHF F ..... SFr12.6068 ..... –

BBB–BB Bond EUR F ..... ∑9.7727 ..... –

BBB–BB Bond GBP F ..... £8.5387 ..... –

BBB–BB Bond USD F..... $13.8366 ..... –

Baron Us Growth P A F 5 $8.2778 ..... –

Clean Tech P A F ......... 5 ∑4.9126 ..... –

Convertible Bd P A......... ∑13.366 ..... –

Convertible Bd Asia P A F. 5 SFr12.4418 ..... –

Convertible Bd Asia P A F. 5 ∑13.0208 ..... –

Convertible Bd Asia P A F. 5 $12.9502 ..... –

EMEA P A ...................... ∑12.719 ..... –

Emerging Market Bd P A . $20.6753 ..... –

Emerging Loc.Curr.&Bds. P Dyn.Hdg F. SFr9.186 ..... –

Emerging Loc.Curr.&Bds. P A F SFr9.4204 ..... –

Emerging Loc.Curr.&Bds. P A F ∑11.1194 ..... –

Emerging Loc.Curr.&Bds. P A F $10.4346 ..... –

Euro Aggregate Bd P A .. ∑9.7529 ..... –

Euro Credit Bd PA F ..... 5 ∑10.7131 ..... –

Euro Government Bd PA F 5 ∑10.4944 ..... –

Euro Inflation–Linked Bd PA F . ∑10.4425 ..... –

Euro Resp.Corp.Bd. PA .. ∑15.5225 ..... –

Europe High Conviction PA. ∑5.89 ..... –

Eurozone Small&Mid Caps F.. 5 ∑27.9846 ..... –

Gbl Emerging Mkts P A F . 5 $6.275 ..... –

Gbl Emerging Mkts P A F . 5 ∑6.6464 ..... –

Generation Global (CHF) P A F . a SFr6.9643 ..... –

Generation Global (EUR) P A F . a ∑9.4163 ..... –

Generation Global (USD) P A F . a $8.6609 ..... –

Golden Age (CHF) P A F . SFr12.4808 ..... –

Golden Age (EUR) P A .... ∑8.3773 ..... –

Golden Age (USD) P A F . $11.7667 ..... –


Lombard Odier Darier Hentsch - Contd.Government Bd (USD) P A $19.9001 ..... –

Greater China P A.......... $84.1335 ..... –

Invst.Gde A–BBB (CHF) P A SFr12.0057 ..... –

Japan Small & Mid Caps P A Y1618 ..... –

Money Market (EUR) P A E ∑111.4926 ..... –

Money Market (GBP) P A F . £10.1568 ..... –

Money Market (USD) P A F . 5 $10.2522 ..... –

Pacific Rim P A.............. $10.3741 ..... –

Selective Gbl Eq. P A F .. ∑154.0295 ..... –

Technology P A ............. ∑8.9779 ..... –

Technology P A ............. $13.6919 ..... –

Total Return Bond (EUR) P A . ∑11.7847 ..... –

William Blair Gbl Gth P A F.. 5 $8.3459 ..... –

William Blair Gbl Gth P A F.. 5 ∑8.2827 ..... –

Wld Gold Expertise P A F.. 5 SFr33.9718 ..... –

Wld Gold Expertise P A .. ∑26.3169 ..... –

Wld Gold Expertise P A .. $33.3624 ..... –

Lombard Odier Funds II

Balanced (EUR) P A F... 5 ∑100.915 ..... –

Conservative (EUR) P A F . 5 ∑101.282 ..... –

LO Selection

Balanced (CHF) P A F... 5 SFr95.4426 ..... –

Balanced (EUR) P A F... 5 ∑101.9165 ..... –

Conservative (CHF) P A F . 5 SFr98.3397 ..... –

Conservative (EUR) P A F . 5 ∑101.5729 ..... –

Conservative (USD) P A F. $98.002 ..... –

Global Allocation (GBP) P A F £8.1577 ..... –

Global Energy (USD) P A F $8.2038 ..... –

Growth (CHF) P A F...... 5 SFr92.4339 ..... –

Growth (EUR) P A F...... 5 ∑101.251 ..... –

Lothbury Property Trust (UK)155 Bishopsgate, London EC2M 3TQ Tel: +44(0) 20 3551 4900

Property & Other UK Unit Trusts

Lothbury Property Trust GBP Aug 31 £1359.14 1458.02 ..... –

M & G (Guernsey) Ltd (GSY)Regulated

The M&G Offshore Fund Range

American Fund............... 93.134 97.0146 ..... 0

Corporate Bond .............. 1163.5633 1199.5498 ..... 3.98

Global Basics ................. 2197.4243 2288.9837 ..... 0

Global Leaders ............... 2372.2322 2471.0752 ..... 1.7

High Yield Corporate Bond 857.5401 884.062 ..... 7

Macro Episode Fund Limited . 95.5295 99.5099 ..... 0

Optimal Income Fund ..... 118.8346 123.786 ..... 4.6

Recovery Fund Limited 'A' Participating Shares. 90.812 94.5959 ..... 0.42

Recovery Fund Limited 'I' Participating Shares . 90.8802 94.6669 ..... 1.27

Strategic Corporate Bond Fund . 116.1043 120.942 ..... 4.2

UK Growth...................... 1022.0391 1064.6241 ..... 1.62

UK Select Fund............... 778.54 810.9792 ..... 1.14


M&G Property Fund – Retail £6.766 7.122 ..... 4.34

M&G Property Fund A Inc . £6.766 6.766 ..... 4.87

MFS Meridian Funds SICAV (LUX)www.ft.com/funds/MFSmeridianfundsSICAV

Regulated

Absolute Return A1 ........ ∑16.79 ..... –

Asia ex–Japan A1 .......... $19.16 ..... –

China Equity Fd A1 ......... $7.62 ..... –

Continental European Eqty A1 ∑9.25 ..... –

Emer Mkts Debt Lo Curr Fd A1 . $13.18 ..... –

Emerging Markets Debt A1 . $27.51 ..... –

Emerging Markets Eq.A1 $10.93 ..... –

European Core Eq A1 ..... ∑15.15 ..... –

European Res.A1............ ∑16.39 +0.1 –

European Smaller Companies A1 . ∑21.9 ..... –

European Value A1 ......... ∑17.75 ..... –

Global Bond A1 .............. $11.3 ..... –

Global Conc.A1............... $20 ..... –

Global Energy Fund A1 ... $12.55 ..... –

Global Equity A1............. $26.37 ..... –

Global Equity A1............. ∑12.46 ..... –

Global Multi–Asset A1 .... $14.17 ..... –

Global Res.A1................. $17.12 ..... –

Global Total Return A1.... ∑10.9 +0.07 –

High Yield A1.................. $19.57 ..... –

High Yield Fund A1......... ∑10.6 ..... –

Inflation–Adjusted Bond A1. $14.35 –0.09 –

Japan Equity A1 ............. $7.52 ..... –

Latin American Equity Fd A1.. $18.11 ..... –

Limited Maturity A1........ $13.64 –0.01 –

Prudent Wealth Fd A1..... $11.02 ..... –

Research Bond A1.......... $14.96 –0.08 –

UK Equity A1 .................. £5.34 ..... –

US Conc.Growth A1........ $9.09 ..... –

US Government Bond A1 $16.51 ..... –

Value A1 ........................ $12.02 ..... –

MM Institutional Funds Plc (IRL)Regulated

MM Europe Ex–UK Equity . £10.51 ..... –

MM Europe Ex UK Equity Defensive 1D EUR Acc ∑8.34 ..... –

MM Eurozone Equity Core 1 Fund Class D . ∑7.58 ..... –

MM Eurozone Equity Core 2 D EUR .. ∑8.13 ..... –

MM Eurozone Equity Core 3 D EUR .. ∑8.88 ..... –

MM Far East Ex–Japan Equity £29.37 ..... –

MM Government Eurobond . ∑10.57 ..... –

MM Japan Equity ........... £10.11 ..... –

MM Japan Equity Aggressive 1 Fund Class J JPY Y910.23 ..... –

MM Pan Europe Equity (Core 1) Fund ∑9.79 ..... –

MM Pan Europe Equity (Agressive 1) Fund CLS'E'EUR ∑8.94 ..... –

MM Pan Europe Equity (Aggressive 2 ) Fund CLS'D'EUR ∑10.32 ..... –

MM Pan Europe Equity (Defensive 1) Fund CLS'D'EUR ∑11.13 ..... –

MM US Equity Value 1 Fund Class G. $10.74 ..... –

MM US Equity Growth 2 Fund Class G .. $11.13 ..... –

MM US Equity Value 2 Fund Class G. $10.17 ..... –

MM UK Bond .................. £16.35 ..... –

MM UK Equity ................ £15.01 ..... –

MM US Equity ................ £8.93 ..... –

MMIP Investment Management Limited (GSY)Regulated

Multi–Manager Investment Programmes PCC Limited

European Equity Fd Cl A Initial Ser ∑1467.61 1473.30 ..... –

Japanese Equity Fd Cl A Initial Ser Y168070 168900 ..... –

MMIP – US EQUITY CLASS A 01 June 07 Series $813.76 816.20 ..... –

Pacific Basin Fd Cl A Initial Ser . $2219.97 2245.88 ..... –

UK Equity Fd Cl A Series 01 Mar 04 . £1249.23 1262.93 ..... –

Diversified Absolute Rtn Fd USD Cl AF2. $1410.84 1410.84 ..... –

Diversified Absolute Return Stlg Cell AF2 .. £1427.01 1427.01 ..... –

Man InvestmentsOther International Funds

Man AHL Alpha USD Shares $840.5 ..... 2.44

Man AHL Diversified Plc . $99.29 ..... 1.36

Mangart Global Fund Ltd (CYM)Regulated

B Shares EUR Nav (Final) Aug 31 . ∑126.45O ..... –

B Shares USD Nav (Final) Aug 31 . $126.45 ..... –

Manulife Global Fund (LUX)31 Z.A. Bourmicht, L–8070 Bertrange, Luxembourg

Internet: www.manulife.com.hk

FSA Recognised

American Growth Fund A Sep 26. E $15.5292 +0.1174 –

Asia Total Return Fund (Class AA) F. $0.9388 –0.0104 –

Asia Value Dividend Equity Fund AA Sep 26 F.. $1.0855 –0.0393 –

American Growth Fund AA Sep 26 F $0.8904 +0.0067 –

Asian Equity Fund A Sep 26.. $2.274 –0.1018 –

Asian Equity Fund AA Sep 26 F $0.7311 –0.0328 –

Asian Small Cap Equity Fund AA Sep 26 F . $1.2888 –0.0664 –

China Value Fund A Sep 26 $5.8584 –0.282 –

China Value Fund AA Sep 26 F.. 5 $1.834 –0.0883 –

Dragon Growth Fund A Sep 26. $1.2769 –0.0421 –

Dragon Growth Fund AA Sep 26 F .. HK$6.2168 –0.2058 –

Emerging Eastern Europe Fund AA Sep 26 F . 5 $1.6397 –0.0053 –

Emerging Eastern Europe Fund A Sep 26.. $3.8236 –0.0124 –

European Growth Fund A Sep 26. $7.3839 +0.1571 –

European Growth Fund AA Sep 26 F $0.5273 +0.0112 –

Global Contrarian Fund AA Sep 26 F $0.797 –0.0021 –

Global Property Fund AA Sep 26 F .. $0.655 –0.0034 –

Global Resources Fund AA Sep 26 F $1.0524 –0.0202 –

Healthcare Fund AA Sep 26 F .. $0.9252 +0.0043 –

India Equity Fund AA Sep 26 F . $0.9617 –0.0062 –

International Growth Fund A Sep 26 $2.77 +0.0077 –

International Growth Fund AA Sep 26 F $0.6409 +0.0018 –

Japanese Growth Fund A Sep 26 $2.5487 –0.0724 –

Japanese Growth Fund AA Sep 26 F $0.6565 –0.0186 –


Manulife Global Fund - Contd.Latin America Equity Fund AA Sep 26 F $1.0371 +0.0004 –

Russia Equity Fund AA Sep 26 F . $0.5672 –0.0045 –

Strategic Income AA Sep 26 F . $1.0973 –0.0042 –

Taiwan Equity Fund AA Sep 26 F. $1.0632 –0.033 –

Turkey Equity Fund AA Sep 26 F . $0.7319 –0.0044 –

US Bond Fund AA Sep 26 F $1.2172 –0.0053 –

U.S. Special Opportunities Fund AA Sep 26 F .. $0.8091 +0.0047 –

US Small Cap Equity Fund AA Sep 26 F $0.7366 +0.0099 –

US Treasury Inflation–Protected Securities Fund AA Sep 26 F $1.315 –0.0043 –

Marfin Capital Partners Limited (IOM)12 Hay Hill London W1J 8NR 0207 054 9257

Regulated

Marfin Diversified Strategy Fund – USD A .. $81.4534 ..... –

Marfin Diversified Strategy Fund – Euro A.. ∑76.6980 ..... –

Marfin Diversified Strategy Fund – Euro B.. ∑74.1669 ..... –

Marlborough International Management Limited (GSY)Regulated

Marlborough Multi Asset Cautious Fund £10.254 10.255 ..... –

Marlborough Multi Asset Balanced Growth Fund £7.286 7.286 ..... 0.00

Marlborough Investment Management Limited (GSY)First Floor, Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520

FSA Recognised

Marlborough North American Fund Ltd. 5a £18.350 18.535 ..... 0.00

Marlborough Tiger Fund Ltd F 5a £27.016 27.289 ..... 0.00

Marwyn Investment Management LLP (CYM)Regulated

Marwyn Value Investors . £309.69 ..... –

Meditor Group Limited (BMU)Regulated

European Hedge Fd (B) (Est) $523.08 ..... –

European Hedge Fd (C) (Est) ∑265.86 ..... –

Melchior Hedge Funds (CYM)Regulated

Melchior European Fund Ltd EUR Class ∑154.19 ..... –

Meridian Fund Managers LtdOther International Funds

Global Gold & Resources Fund.. $713.4881 ..... –

Global Energy & Resources Fund . $123.4995 ..... –

Metage CapitalOther International Funds

MGS (Est) Aug 31 ........... $214.5197 ..... –

MEMO (Est) Aug 31 ........ $468.4229 ..... –

MSE (Est) Sep 23 ........... $74.17 ..... –

Mirabaud Gestion AM (FRA)Regulated

Mirabaud Euro Actions ... ∑98.73 ..... –

Mirabaud France Actions ∑107.01 ..... –

MitonOptimal Offshore (GSY)www.MitonOptimal.com

Regulated

Core Diversified Fund (USD) $108.6339 ..... –

Core Diversified Fund (EUR) ∑93.434 ..... –

Core Diversified Fund (GBP) £101.1251 ..... –

Managed Flexible US$ Fund $99.2052 ..... –

Offshore Global (GBP) ..... £95.4772 ..... –

Offshore Global (USD)..... $89.9165 ..... –

Offshore Special Situations (GBP) . £134.3448 ..... –

Offshore Special Situations (USD). $125.815 ..... –

Offshore Special Situations (EUR) . ∑106.1269 ..... –

Offshore Special Situations (YEN) . Y11441.3891 ..... –

Montanaro European Smaller Cos Plc (IRL)Regulated

GBP NAV Sep 26 ............ £2.35 ..... –

EUR NAV Sep 26............. ∑2.69 +0.03 –

USD NAV Sep 26 ............ $1.82 +0.01 –

Euro Equity Income EUR Sep 26 ∑0.65 +0.01 –

Euro Equity Income GBP . £0.96 ..... –

European Smaller Cos EUR Acc ∑2.49 +0.02 –

Morant Wright Management Ltd (CYM)Regulated

MW Japan Fd Ltd A Sep 23. $17.59 ..... 0.00

MW Japan Fd Ltd B Sep 23. $18.04 ..... 0.00

Morgan Stanley Investment Funds (LUX)6b Route de Trèves L–2633 Senningerberg Luxembourg (352) 34 64 61

www.morganstanleyinvestmentfunds.com

FSA Recognised

US Advantage A F .... 5e $30.7 (z) 10.72

Absolute Return Currency A F 5e ∑25.69 +0.06 0

Asian Equity A F....... 5e $34.94 (z) –

Asian Property A F ... 5e $12.38 –0.24 4.24

Asian Property AX F . 5e £7.67 ..... 4.16

Diversified Alpha Plus A F 5e ∑25.11 (z) 0.13

Emerg Europ, Mid–East & Africa Eq A F 5e ∑47.90 +0.42 23.37

Emerging Markets Debt A F 5e $67.64 (z) 4.55

Emerging Markets Domestic Debt AX F 5e £15.49 (z) 1.46

Emerging Markets Equity A F. 5e $31.08 –0.39 4.91

Euro Bond A F ............. 4 ∑12.60 –0.02 2.69

Euro Corporate Bond AX F 4 £21.49 ..... 4.38

Euro Liquidity A F ........ 0 ∑12.87 ..... 0.43

Euro Strategic Bond A F. 4 ∑33.83 –0.04 14.91

European Currencies High Yield Bd A F .. 4 ∑14.06 –0.05 7.58

European Equity Alpha A F . 5e ∑25.11 +0.51 0.59

European Property A F.. 5e ∑16.97 +0.20 5.04

European Small Cap Value A F .. 5e ∑29.88 (z) 5.36

Eurozone Equity Alpha A F . 5e ∑5.91 +0.15 1.41

Global Bond A F........... 4 $37.88 (z) 61.49

Global Brands A F .... 5e $63.04 ..... 17.73

Global Convertible Bond A F 4 $32.73 –0.13 13.98

Global Property A F .. 5e $17.68 –0.05 0.88

Indian Equity A F...... 5e $23.54 (z) 5.21

Latin American Equity A F .. 5e $57.35 (z) –

Short Maturity Euro Bond A F. 4 ∑19.06 –0.01 2.63

US Dollar Liquidity A F . 0 $13.03 ..... 0.47

US Growth A F ......... 5e $36.59 (z) 0.91

US Growth AH F ....... 5e ∑25.84 (z) 89.22

US Growth AX F ....... 5e £23.66 (z) 0.91

US Property A F ....... 5e $40.82 (z) 0.53

US Property AX F ..... 5e £24.2 (z) 0.57

Morgens Waterfall Vintiadis.co IncOther International Funds

Phaeton Intl (BVI) Ltd (Est) $394.24 ..... –

Natixis International Funds (Lux) I SICAV (LUX)Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000

FSA Recognised

Absolute Asia AM Pac Rim Eq Fd "IA" . $76.90 ..... –

ASG Laser Fund I/A (USD) H 3 C $1109.96 ..... –

Harris Associates Global Value Fund H 4 C ∑133.58 ..... –

Harris Associates US Large Cap Value Fund ... $123.20 ..... –

Loomis Sayles Emerging Debt & Currencies Fund "IA" $142.84 ..... –

Loomis Sayles Global Credit Fund I/A (USD) H 3 C $130.28 ..... –

Loomis Sayles US Large Cap Value . $81.01 ..... –

Vaughan Nelson US Small Cap Val Fund "IA" .. $154.78 ..... –

Natixis International Funds (Dublin) I plc (IRL)Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000

Regulated

Loomis Sayles Global Opportunist Bond Fund H–S/D GBP £10.38 ..... –

Loomis Sayles Multisector Inc Fd I USD $12.69 ..... 5.23127

Loomis Sayles Inst High Inc Fd I USD $8.13 ..... 6.63405

Loomis Sayles Global Opportunist Bond Fd I USD $14.11 ..... 3.17961


Natwest (IRL)Guild Hse PO Box 4935 Guild St, IFSC , Dublin 1

FSA Recognised

Series 10

Absolute Rtn Multi Asset Prog SER 10 GBP F .. £9.79 ..... 0.00

Nemesis Fund Plc (IRL)Regulated

Nemesis Credit Opportunities Advisor EUR Acc . ∑106.3543 ..... –

Nemesis European Value EUR Advisor Acc . ∑151.8431 ..... –

Nemesis Inflation Advisor EUR Acc .. ∑98.922 ..... –

Nemesis USA Value USD Advisor Acc $89.3476 ..... –

Nevsky Capital LLP (IRL)51 Berkeley Square, London W1J 5BB +44 (0)20 7360 8888

FSA Recognised

Traditional Funds Plc

Eastern European........ 5 $66.63 69.96 –2.04 –

Nevsky Capital LLPOther International Funds

Nevsky Fund Plc EUR Acc. ∑995.20 1054.91 ..... –

Nevsky Fund Plc GBP Acc. £993.43 1053.03 ..... –

Nevsky Fund Plc USD Acc. $994.36 1054.02 ..... –

New Capital Fund Management Ltd (IRL)Leconfield House, Curzon Street, London, W1J 5JB

Regulated

New Capital UCITS Funds

Asia Pacific Equity Fund USD Class A $85.22 –1.95 0.00

Asia Pacific Equity Fund EUR Class B ∑84.37 –2.01 0.00

Asia Pacific Equity Fund GBP Class C £84.99 –1.99 0.00

Asia Pacific Equity Fund CNY USD Hedged Class F $85.93 –1.7 0.00

Wealthy Nations Bond USD Cls A . $103.12 –0.72 5.26

Wealthy Nations Bond EUR Cls B.. ∑101.49 –0.74 5.49

Wealthy Nations Bond GBP Cls C . £102.67 –0.75 5.43

Wealthy Nations Bond GBP Cls D . £103.22 –0.76 5.37

Wealthy Nations Bond CHF Cls E.. SFr100.64 –0.8 5.16

Wealthy Nations Bond USD CNY Hedged Class F $99.85 –0.4 5.24

Wealthy Nations Bond SGD Class G . S$145.68 –1.08 5.32

Wealthy Nations Bond Class H.. S$96.56 –0.73 5.32

Wealthy Nations Bond Class I $97.65 –0.39 5.32

Total Return Bond USD Cls.. $135.63 –0.57 0.00

Total Return Bond EUR Cls ∑129.03 –0.56 0.00

Total Return Bond GBP Cls.. £143.58 –0.62 0.00

Total Return Bond Fund Canadian Dollar Class . C$94.17 –0.41 –

Total Return Bond Fund CHF.. SFr98.9 –0.49 0.00

Total Return Bond Fund USD . $100.41 –0.12 0.00

Total Return Bond GBP Distributor Class £105.26 –0.45 1.36

Global Fixed Income USD.. $115.62 –0.42 –

Global Fixed Income USD CNY Hedged . $100.87 –0.06 –

US Growth Class A USD.. $103.23 +1.16 0.00

US Growth Class B EUR .. ∑101.06 +1.19 0.00

US Growth Class C GBP.. £102.45 +1.2 0.00

US Growth Class D CHF.. SFr104.11 +1.18 0.00

New Capital Alternative Strategies

All Weather Fd USD Cls .. $116.28 +0.03 –

All Weather Fd EUR Cls... ∑106.32 +0.16 –

All Weather Fd GBP Cls... £113.31 ..... –

Tactical Opps USD Cls .... $89.27 –9.02 –

Tactical Opps EUR Cls .... ∑75.16 –7.81 –

Tactical Opps GBP Cls .... £82.87 –8.57 –

NewSmith Investment Funds Plc (IRL)Regulated

NewSmith UK Equity (Est) . £1.63459 ..... –

Newton Fund Mgrs (CI) Ltd (1200)F (JER)PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130

FSA Recognised

Newton Offshore Strategy Fund Ltd

UK Equity .................... 5 £1.391 +0.0414 2.38

Global Equity ............... 5 £1.2814 +0.0092 2.11

Global Balanced .......... 5 £1.1102 –0.0001 2.21

Global Balanced (Accumulation) 5 £1.1909 –0.0002 2.19

Bridge ......................... 5 £1.2206 +0.0041 2.4

Sterling Fixed Interest Class .. 3a C £0.8103 –0.0053 4.3

Global Fixed Interest Class . 3a C £1.0055 –0.0055 5.28

Diversified Assets........ 5 C £1.0596 –0.0031 2.96

Special Situations........ 5 C £0.9445 +0.0133 3.77

Alternative Assets........ 5 £0.9885 –0.0097 0.75

Nordea 1, SICAV (LUX)E–Mail: [email protected] Phone: +352 43 39 50 0

www.nordea.lu

www.ft.com/funds/nordea

FSA Recognised

Emerging Consumer Fund F . ∑13.08 ..... –

European Alpha Fund F . 5 ∑6.44 ..... –

European Value Fund .... ∑30.52 ..... –

Far Eastern Equity Fund $15.22 ..... –

Latin American Equity Fund 5 ∑9.29 ..... –

Nordic Equity Fund ........ ∑40.21 ..... –

North American Growth Fund H. 5 $8.26 ..... –

North American Value Fund $27.68 ..... –

European High Yield Bond Fund F . 3 E ∑18.54 ..... –

Global Stable Equity Fund F 5 ∑8.59 ..... –

Heracles Long/Short MI Fund – AP – EUR F C ∑53.94 ..... –

Northwest Investment Management (HK) Ltd11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373


Northwest $ class May 31 $2044.87 ..... –

Northwest China Opps $ class May 31 . $2690.36 ..... –

Northwest China Opps ∑ class May 31 . ∑2658.08 ..... –

Northwest Warrant $ class May 31 .. $1167.04 ..... –

Oasis Crescent Management Company LtdOther International Funds

Oasis Crescent Equity Fund R6.2240 ..... –

Oasis Global Mgmt Co (Ireland) Ltd (IRL)Regulated

Oasis Global Investment (Ireland) Plc

Oasis Global Equity......... $17.8260 ..... –

Oasis Crescent Global Investment Fund (Ireland) plc

Oasis Crescent Global Equity Fund .. $18.1010 ..... –

OasisCresGl Income Class A $10.2080 ..... –

OasisCresGl LowBal D ($) Dist .. $9.4200 ..... –

Oasis Crescent Gbl Property Eqty . $6.7120 ..... –

Occam Asset Management LLP (IRL)FSA Recognised

Occam Asia Focus Class A Euro 5 E ∑10.31 ..... –

Occam Asia Focus Class B USD F . 5 $9.83 ..... –

Occam Asia Focus Class C GBP. 5 E £11.28 ..... –

Occam Europe Focus Class A Euro F . 5 ∑9.60 ..... –

Occam Europe Focus Class B USD 5 $9.09 ..... –

Occam Europe Focus Class C GBP 5 £10.67 ..... –

OCCAM Emerging Mkts Opps Fund Class A EUR ∑8.85 ..... –

OCCAM Emerging Mkts Opps Fund Class B USD $9.03 ..... –


Occam Asset Management LLP - Contd.OCCAM Emerging Mkt Opps Fund Class C GBP £8.77 ..... –

OCCAM Emerging Mkt Opps Fund Class D NOK 5 NKr51.50 ..... –

OCCAM Emerging Mkt Opps Fund Class E SEK H CE SKr62.50 ..... –

Occam Asia Absolute Rtn Cls A Euro . 5 ∑6.83 ..... –

Occam Asia Absolute Rtn Cls B USD.. 5 $6.90 ..... –

Occam Asia Absolute Rtn Cls C GBP.. 5 £6.84 ..... –

Occam Asset Managemet LLPOther International Funds

Occam Sorbus Fund Class A Euro ∑992.2358 ..... –

Occam Sorbus Fund Class B USD. $996.3126 ..... –

Occam Sorbus Fund Class C GBP. £1008.6315 ..... –

Odey Asset Management LLP (CYM)Regulated

OEI MAC Inc A Sep 14 .... £266.02 ..... –

OEI Mac Inc B Sep 14..... £151.25 ..... –

OEI MAC Inc USD Sep 14 $1457.80 ..... –

Odey European Inc EUR Sep 14 ∑573.15 ..... –

Odey European Inc A GBP Sep 14. £216.31 ..... –

Odey European Inc B GBP Sep 14 £123.80 ..... –

Odey European Inc USD Sep 14 $264.25 ..... –

Giano Capital EUR Inc (Final) Aug 31 ∑3771.02 ..... –

Odey Asset Management LLP (IRL)FSA Recognised

Odey OEAF EUR A Class Sep 23 .. ∑79.69 ..... –

Odey OEAF GBP D Class Sep 23.. £81.73 ..... –

Odey Pan European Sep 23 5 ∑184.08 ..... –

Odey Pan European GBP D Sep 23 5 £129.41 ..... –

Odey Allegra STG A Sep 23 £80.11 ..... –

Odey Allegra USD Sep 23 $92.28 ..... –

Odey Allegra European EUR Sep 23 .. 2 ∑127.61 ..... –

Odey Allegra European EUR I Sep 23 F... 2 ∑125.31 ..... –

Odey Allegra European USD Sep 23 .. 2 $132.67 ..... –

Odey Allegra European GBP Sep 23 .. 2 £160.25 ..... –

Odey Allegra European GBP I Sep 23 . 2 £154.34 ..... –

Odey Allegra International GBP Class Sep 23 . 5 £118.71 ..... –

Odey Allegra International GBP D Inc Sep 23 F . £107.96 ..... –

Odey Allegra International Euro Class Sep 23 . 5 ∑86.76 ..... –

Odey Allegra International Euro I Class Sep 23 5 ∑80.19 ..... –

Odey Wealth Management (CI) Ltd (IRL)FSA Recognised

ODEY OPPORTUNITY CHF SFr93.44 ..... –

ODEY OPPORTUNITY CHF I . SFr93.13 ..... –

ODEY OPPORTUNITY EUR ∑108.48 ..... –

ODEY OPPORTUNITY EUR I . ∑161.47 ..... –

ODEY OPPORTUNITY GBP I R £178.27 ..... –

ODEY OPPORTUNITY GBP R £115.28 ..... –

ODEY OPPORTUNITY NOK NKr96.86 ..... –

ODEY OPPORTUNITY NOK I. NKr98.43 ..... –

ODEY OPPORTUNITY USD $114.75 ..... –

ODEY OPPORTUNITY USD I. $169.77 ..... –

Omnia Fund LtdOther International Funds

Estimated NAV (Est) Jul 29.. $493.23 ..... –

Optima Fund Managementhttp://funds.ft.com/funds/optima


Optima Fd NAV Sep 16 ... $72.24 ..... –

Optima Discretionary Macro Fund Limited Sep 16 $82.14 ..... –

The Dorset Energy Fd Ltd NAV.. $46.425 ..... –

Platinum Fd Ltd Sep 16 .. $67.91 ..... –

Platinum Fd Ltd EUR Sep 16.. ∑13.833 ..... –

Platinum Japan Fd Ltd.... $32.992 ..... –

Optima Emerging Markets Fd Ltd . $14.4344 ..... –

Optima Partners Global Fd $11.7352 ..... –

Optima Partners Focus Fund A . $11.1377 ..... –

Cuttyhunk II Limited Unrestricted USD Acc NAV. $1033.355 ..... –

Orbis Investment Management Ltd (BMU)Regulated

Orbis Global Equity ......... $103.50 ..... –

Orbis Optimal (US$)........ $71.60 ..... –

Orbis Optimal (Euro) ....... ∑24.08 ..... –

Orbis Optimal (Yen) ........ Y956.00 ..... –

Orbis Leveraged (US$).... $112.70 ..... –

Orbis Leveraged (Euro) ... ∑37.16 ..... –

Orbis Leveraged (Yen) .... Y889.00 ..... –

Orbis Japan Equity (US$) $21.02 ..... –

*Orbis Prices as of September 22nd

Orbis Sicav (LUX)Regulated

Orbis Japan Equity (Yen). Y2018.00 ..... –

Orbis Japan Equity (Euro) . ∑13.81 ..... –

Orbis Asia ex–Japan – Investor Shares . $14.75 ..... –

Orbis Global Equity – Investor Shares .. ∑75.56 ..... –

Orbit Asset ManagementOther International Funds

Orbit Global Strategy Apr 30 $161.84 ..... –

Orbit Euro Strategies Apr 30 ∑141.44 ..... –

Oryx International Growth Fund LtdOther International Funds

NAV (Fully Diluted) Apr 30. £2.89 ..... –

PFPC International LtdOther International Funds

Intl Dollar Reserve A....... $1 ..... 0.0627

Intl Dollar Reserve B....... $1 ..... 0

Intl Dollar Reserve Bear .. $1 ..... 0

Permal Investment Mgmt Svcs LtdOther International Funds

www.permal.com

Offshore Fund Class A US $ Shares

Investment Holdings N.V. (Final) Sep 15 $4696.1 ..... –

Macro Holdings Ltd (Final) Sep 15 $4196.27 ..... –

Fixed Income Holdings N.V. (Final) Sep 15 . $486.2 ..... –

LUX Advantage Multi–Strategy Fund (Final) Sep 15 $1395.98 ..... –

LUX Natural Resources (Final) Sep 15 .. $1412.45 ..... –

Strategic Allocation A (Final) $1283.18 ..... 2.7

Pictet (LUX)3 BLD ROYAL L–2016 Luxembourg

Tel: 0041 58 323 3000

FSA Recognised

Pictet–Absl Rtn Glo Cons–I EUR F ∑101.71 ..... –

Pictet–Absl Rtn Glo Cons–P EUR F .. ∑99.96 ..... –

Pictet–Absl Rtn Glo Cons–Pdy EUR F .. ∑97.88 ..... –

Pictet–Absl Rtn Glo Div–I EUR F .. ∑115.14 ..... –

Pictet–Absl Rtn Glo Div–P EUR F 5 ∑111.33 ..... –

Pictet–Absl Rtn Glo Div–Pdy EUR F . ∑108.27 ..... –

Pictet–Absl Rtn Glo Div–R EUR F . ∑108.31 ..... –

Pictet–AbsRetGloDiv–HI CHF F.. 5 E SFr167.79 ..... –

Pictet–AbsRetGloDiv–HI GBP F £96.82 ..... –

Pictet–AbsRetGloDiv–HI JPY F .. 5 E Y12827.00 ..... –

Pictet–AbsRetGloDiv–HI USD F . 5 E $145.62 ..... –

Pictet–AbsRetGloDiv–HP CHF F . 5 E SFr162.22 ..... –

Pictet–AbsRetGloDiv–HPdy GBP F . 5 E £91.07 ..... –

Pictet–AbsRetGloDiv–HP USD F. 5 E $140.79 ..... –

Pictet–Agriculture–I EUR F.. 5 E ∑124.65 ..... –

Pictet–Agriculture–I USD F . 5 E $168.28 ..... –

Pictet–Agriculture–P EUR F. 5 E ∑122.23 ..... –

Pictet–Agriculture–P dy EUR F .. 5 E ∑122.23 ..... –

Pictet–Agriculture–P dy GBP F .. 5 E £106.81 ..... –

Pictet–Agriculture–P dy USD F.. 5 E $165.01 ..... –

Pictet–Agriculture–R EUR F 5 E ∑120.26 ..... –

Pictet–Agriculture–R USD F 5 E $162.35 ..... –

Pictet–Agriculture–P USD F 5 E $165.01 ..... –

Pictet–Asian Equities Ex Japan–I USD F.. 0 $155.48 ..... –

Pictet–Asian Equities Ex Japan–P USD F . 5 E $145.84 ..... –


Pictet - Contd.Pictet–Asian Equities Ex Japan–P dy USD F .. 5 E $143.09 ..... –

Pictet–Asian Equities Ex Japan–HI EUR F.. ∑103.19 ..... –

Pictet–Asian Local Currency Debt–I EUR F. ∑108.92 ..... –

Pictet–Asian Local Currency Debt–I USD F $147.04 ..... –

Pictet–Asian Local Currency Debt–P EUR F ∑105.22 ..... –

Pictet–Asn Lcl Ccy Dbt–Pdy USD F . $128.20 ..... –

Pictet–Asn Lcl Ccy Dbt–Pdy GBP F 5 £84.21 ..... –

Pictet–Biotech–P USD . 5 $268.35 ..... –

Pictet–Biotech–P dy GBP F £173.75 ..... –

Pictet–Biotech–HP EUR F ∑201.94 ..... –

Pictet–Biotech–I USD F.. 5 $290.88 ..... –

Pictet–Biotech–P dy USD F $268.23 ..... –

Pictet–CHF Liquidity–I F 2 SFr125.26 ..... –

Pictet–CHF Liquidity–P F.. 2 SFr124.29 ..... –

Pictet–CHF Liquidity–P dy F 2 SFr93.13 ..... –

Pictet–Clean Energy–I EUR F ∑45.76 ..... –

Pictet–Clean Energy–I USD F . 5 E $61.77 ..... –

Pictet–Clean Energy–P EUR F.. ∑44.11 ..... –

Pictet–Clean Energy–P USD F 5 E $59.55 ..... –

Pictet–Clean Energy–P dy USD F .. 5 E $59.55 ..... –

Pictet–Clean Energy–P dy GBP F. £38.55 ..... –

Pictet–Convertible Bonds–I EUR F .. ∑97.70 ..... –

Pictet–Convertible Bonds–P EUR F.. ∑96.25 ..... –

Pictet–Convertible Bonds–P dy EUR F . ∑96.52 ..... –

Pictet–Convertible Bonds–R EUR F . ∑94.68 ..... –

Pictet–Digital Communication–I EUR F. ∑102.67 ..... –

Pictet–Digital Communication–I USD F... 5 $138.61 ..... –

Pictet–Digital Communication–P EUR F ∑94.37 ..... –

Pictet–Digital Communication–P USD 5 $127.40 ..... –

Pictet–Digital Communication–P dy USD F $122.87 ..... –

Pictet–Digital Communication–P dy GBP F £80.48 ..... –

Pictet–Digital Communication–R EUR F ∑87.77 ..... –

Pictet–Eastern Europe–I EUR F . 2 ∑306.88 ..... –

Pictet–Eastern Europe–P EUR F. 2 C ∑296.71 ..... –

Pictet–Eastern Europe–P dy EUR F . ∑296.44 ..... –

Pictet–Eastern Europe–P dy GBP F . £260.19 ..... –

Pictet–Em Lcl Ccy Dbt–HI EUR F . ∑118.93 ..... –

Pictet–Em Lcl Ccy Dbt–HP EUR F ∑114.93 ..... –

Pictet–Em Lcl Ccy Dbt–I EUR F ∑132.58 ..... –

Pictet–Em Lcl Ccy Dbt–I USD F $178.52 ..... –

Pictet–Em Lcl Ccy Dbt–P EUR F 5 ∑128.07 ..... –

Pictet–Em Lcl Ccy Dbt–P USD F 5 $172.48 ..... –

Pictet–Em Lcl Ccy Dbt–Pdy USD F .. $138.69 ..... –

Pictet–Em Lcl Ccy Dbt–Pdy GBP F. 5 £92.98 ..... –

Pictet–Emerging Markets–I USD F. 2 $482.47 ..... –

Pictet–Emerging Markets–P USD.. 2 $456.85 ..... –

Pictet–Emerging Markets–P EUR F 2 ∑338.41 ..... –

Pictet–Emerging Markets–P dy USD F . $452.16 ..... –

Pictet–Emerging Markets Index–I USD F .. $211.90 ..... –

Pictet–Emerging Markets Index–IS USD F . $211.16 ..... –

Pictet–Emerging Markets Index–P dy USD F... $195.05 ..... –

Pictet–Emerging Markets Index–R USD F . $201.36 ..... –

Pictet–Emerging Markets Index–P USD . a $207.66 ..... –

Pictet–Emerging Markets Index–R dy GBP F . 1 E £129.95 ..... –

Pictet–EUR Bonds–HI CHF F . SFr568.12 ..... –

Pictet–EUR Bonds–HP CHF F . 5a SFr547.89 ..... –

Pictet–EUR Bonds–I F.. 2 ∑419.34 ..... –

Pictet–EUR Bonds–P F. 2 ∑404.45 ..... –

Pictet–EUR Bonds–P dy F 2 ∑287.11 ..... –

Pictet–EUR Corporate Bonds–HI USD F $179.78 ..... –

Pictet–EUR Corporate Bonds–HI CHF F. SFr213.09 ..... –

Pictet–EUR Corporate Bonds–HP USD F $172.52 ..... –

Pictet–EUR Corporate Bonds–HP CHF F SFr204.52 ..... –

Pictet–EUR Corporate Bonds–I F 2 ∑157.39 ..... –

Pictet–EUR Corporate Bonds–P F.. 2 ∑150.99 ..... –

Pictet–EUR Corporate Bonds–P dy F.. 2 ∑98.47 ..... –

Pictet–EUR Government Bonds–P dy F. ∑102.03 ..... –

Pictet–EUR High Yield–HI CHF F.. SFr216.49 ..... –

Pictet–EUR High Yield–HP CHF F . SFr206.30 ..... –

Pictet–EUR High Yield–I F ∑158.77 ..... –

Pictet–EUR High Yield–P F.. 5 ∑151.29 ..... –

Pictet–EUR High Yield–P dy F 5 ∑78.39 ..... –

Pictet–EUR Inflation Linked Bonds–P dy F . ∑102.66 ..... –

Pictet–EUR Liquidity–I F 2 ∑139.30 ..... –

Pictet–EUR Liquidity–P F.. 2 ∑137.16 ..... –

Pictet–EUR Liquidity–P dy F 2 ∑96.92 ..... –

Pictet–EUR Short Mid–Term Bonds–HI CHF F.. SFr109.67 ..... –

Pictet–EUR Short Mid–Term Bonds–HP CHF F . SFr107.77 ..... –

Pictet–EUR Short Mid–Term Bonds–P F ∑122.84 ..... –

Pictet–EUR Short Mid–Term Bonds–I F ∑124.83 ..... –

Pictet–EUR Short Mid–Term Bonds–P dy F ∑90.70 ..... –

Pictet–EUR Sovereign Liquidity–I F . ∑103.38 ..... –

Pictet–EUR Sovereign Liquidity–P F. ∑102.99 ..... –

Pictet–EUR Sovereign Liquidity–P dy F. ∑100.46 ..... –

Pictet–European Sust Eq–P EUR F. 5 ∑122.14 ..... –

Pictet–Europe Index–I EUR F ∑91.25 ..... –

Pictet–Europe Index–IS EUR F . ∑91.19 ..... –

Pictet–Europe Index–P EUR 1 ∑90.33 ..... –

Pictet–Europe Index–P dy EUR F . ∑80.03 ..... –

Pictet–Europe Index–R dy GBP F .. 1 E £73.31 ..... –

Pictet–Euroland Index–P dy EUR F .. ∑61.39 ..... –

Pictet–Euroland Index–R dy GBP F 1 E £56.90 ..... –

Pictet–European Equity Selection–I EUR F . ∑375.02 ..... –

Pictet–European Equity Selection–P EUR F ∑359.28 ..... –

Pictet–Eu Equities Sel–Pdyistr F . ∑337.18 ..... –

Pictet–Europe Index–R EUR F 1 ∑87.75 ..... –

Pictet–European Sust Eq–I EUR F ∑126.91 ..... –

Pictet–European Sust Eq–Pdy EUR F ∑111.50 ..... –

Pictet–Generics–I USD F 5 E $133.78 ..... –

Pictet–Generics–P USD F. 5 E $126.46 ..... –

Pictet–Generics–P dy GBP F . £81.84 ..... –

Pictet–Generics–P dy USD F . $126.43 ..... –

Pictet–World Government Bonds–P USD . 2 $185.62 ..... –

Pictet–World Government Bonds–P dy USD .. 2 $146.56 ..... –

Pictet–Global Emerging Debt–P USD F... 2 $272.22 ..... –

Pictet–Global Emerging Debt–P dy USD F 2 $168.24 ..... –

Pictet–Global Emerging Currencies–I EUR F ... ∑77.36 ..... –

Pictet–Global Emerging Currencies–I USD F ... $104.64 ..... –

Pictet–Global Emerging Currencies–HI EUR F .. ∑66.36 ..... –

Pictet–Global Emerging Currencies–HP EUR F . ∑65.29 ..... –

Pictet–Global Emerging Currencies–P EUR F .. ∑76.11 ..... –

Pictet–Global Emerging Currencies–P USD F .. $102.93 ..... –

Pictet–Global Em Ccy–Pdy USD F $97.85 ..... –

Pictet–Global Emerging Debt–HP EUR F.. 0 ∑194.99 ..... –

Pictet–Global Emerging Debt–HP CHF F . 0 SFr316.99 ..... –

Pictet–Global Emerging Debt–HI EUR F .. 0 ∑203.41 ..... –

Pictet–Global Emerging Debt–HI CHF F .. 0 SFr332.96 ..... –

Pictet–Global Emerging Debt–I USD F 2 $285.86 ..... –

Pictet–Global Megatrend Selection–I USD F .. 5 E $133.54 ..... –

Pictet–Global Megatrend Selection–I EUR F .. 5 E ∑98.92 ..... –

Pictet–Global Megatrend Selection–P USD F . 5 E $130.32 ..... –

Pictet–Global Megatrend Selection–P CHF F.. 5 E SFr117.87 ..... –

Pictet–Global Megatrend Selection–P EUR F.. 5 E ∑96.53 ..... –

Pictet–Glo Megatrend Sel–Pdy EUR F. 5 E ∑96.53 ..... –

Pictet–Glo Megatrend Sel–Pdy GBP F 5 E £84.36 ..... –

Pictet–Glo Megatrend Sel–Pdy USD F 5 E $130.32 ..... –

Pictet–Global Megatrend Selection–R EUR F . 5 E ∑94.05 ..... –

Pictet–Global Megatrend Selection–R USD F . 5 E $126.97 ..... –

Pictet–Greater China–I USD F.. $331.30 ..... –

Pictet–Greater China–P USD F .. 5 $312.16 ..... –

Pictet–Greater China–P dy USD F $303.87 ..... –

Pictet–Greater China–P dy GBP F £196.03 ..... –

Pictet–High Dividend Sel I EUR F . ∑96.31 ..... –

Pictet–High Dividend Sel P CHF F SFr116.22 ..... –

Pictet–High Dividend Sel P EUR F ∑95.29 ..... –

Pictet–High Dividend Sel P USD F $128.31 ..... –

Pictet–High Dividend Sel Pdm GBP F .. £79.52 ..... –

Pictet–High Dividend Sel Pdm USD F .. $121.60 ..... –

Pictet–High Dividend Sel Pdy EUR F ∑93.74 ..... –

Pictet–High Dividend Sel R EUR F ∑94.51 ..... –

Pictet–High Dividend Sel Rdm EUR F .. ∑89.54 ..... –

Pictet–Indian Equities–I USD F. $314.27 ..... –

Pictet–Indian Equities–P USD F . 5 $296.51 ..... –

Pictet–Indian Equities–P dy USD F .. $296.51 ..... –

Pictet–Indian Equities–P dy GBP F .. £191.93 ..... –

Pictet–Japan Index–I JPY F Y7388.55 ..... –

Pictet–Japan Index–IS JPY F Y7484.14 ..... –

Pictet–Japan Index–P JPY F .. 5 Y7312.53 ..... –

Pictet–Japan Index–P dy JPY F Y6928.07 ..... –

Pictet–Japan Index–R dy GBP F .. E £59.91 ..... –

Pictet–Japanese Equities Opp–P JPY F .. 5 Y3946.44 ..... –

Pictet–Japanese Equities Opp–I JPY F 0 Y4119.27 ..... –

Pictet–Japanese Equities Opp–P dy JPY F . Y3914.14 ..... –

Pictet–Japanese Equity Selection–I JPY F 5 E Y6627.63 ..... –

Pictet–Japanese Equity Selection–P JPY F ... 5 Y6357.87 ..... –

Pictet–Japanese Eq Sel–Pdy GBP F .. 5 £53.50 ..... –

Pictet–Japanese Eq Sel–Pdy JPY F . Y6297.89 ..... –

Pictet–LATAM Lc Ccy Dbt–Pdy GBP F 5 E £72.57 ..... –

Pictet–LATAM Lc Ccy Dbt–I EUR F .. ∑101.59 ..... –

Pictet–LATAM Lc Ccy Dbt–I USD F.. $136.16 ..... –

Pictet–LATAM Lc Ccy Dbt–P EUR F . ∑99.13 ..... –

Pictet–LATAM Lc Ccy Dbt–P USD F . $132.85 ..... –

Pictet–LATAM Lc Ccy Dbt–Pdy USD F.. $108.42 ..... –

Pictet–LATAM Lc Ccy Dbt–R EUR F . ∑97.03 ..... –

Pictet–LATAM Lc Ccy Dbt–R USD F. $130.07 ..... –

Pictet–MENA–HP EUR F. 5 E ∑28.60 ..... –

Pictet–MENA–I USD F.. 5 E $46.99 ..... –

Pictet–MENA–P USD F 5 E $45.70 ..... –

Pictet–MENA–P EUR F. 5 E ∑33.38 ..... –

Pictet–MENA–Pdy USD F . 5 E $45.36 ..... –

Pictet–Pacific Ex Japan Index–P USD F .. 5 $259.80 ..... –

Pictet–Pacific Ex Japan Index–I USD F . $262.59 ..... –

Pictet–Pacific Ex Japan Index–IS USD F ... $262.10 ..... –

Pictet–Pacific Ex Japan Index–P dy USD F. $221.37 ..... –


Pictet - Contd.Pictet–Pacific Ex Japan Index–R USD F .. 3 $253.52 ..... –

Pictet–Pacific Ex Japan Index–R dy GBP F ... 1 E £156.06 ..... –

Pictet–Premium Brands–I EUR F 1 ∑92.29 ..... –

Pictet–Premium Brands–I USD F . $124.59 ..... –

Pictet–Premium Brands–P EUR . 5 ∑84.86 ..... –

Pictet–Premium Brands–P USD F $114.56 ..... –

Pictet–Premium Brands–P dy EUR F.. 1 ∑84.81 ..... –

Pictet–Premium Brands–P dy GBP F £74.11 ..... –

Pictet–Russian Equities–P USD F.. 5 E $55.97 ..... –

Pictet–Russian Equities–P dy GBP F .. 5 E £36.24 ..... –

Pictet–Russian Equities–I EUR F . ∑42.73 ..... –

Pictet–Russian Equities–I USD F . $57.76 ..... –

Pictet–Russian Equities–P EUR F. ∑41.40 ..... –

Pictet–Russian Equities–P dy USD F $55.94 ..... –

Pictet–Security–I EUR F. 5 E ∑82.80 ..... –

Pictet–Security–I USD F. 5 E $111.78 ..... –

Pictet–Security–P EUR F 5 E ∑79.46 ..... –

Pictet–Security–P USD F.. 5 E $107.27 ..... –

Pictet–Security–P dy USD F 5 E $107.27 ..... –

Pictet–Security–P dy GBP F.. £69.44 ..... –

Pictet–Security–R EUR F.. ∑76.78 ..... –

Pictet–Security–R USD F.. 5 E $103.65 ..... –

Pictet–Small Cap Europe–I EUR F . 1 ∑485.65 ..... –

Pictet–Small Cap Europe–P EUR F. 1 E ∑459.18 ..... –

Pictet–Small Cap Europe–P dy EUR F .. ∑453.77 ..... –

Pictet–Timber–HP EUR F . ∑60.93 ..... –

Pictet–Timber–I USD F .. $94.05 ..... –

Pictet–Timber–I EUR F .. ∑69.67 ..... –

Pictet–Timber–P USD F . $91.71 ..... –

Pictet–Timber–P EUR F . ∑67.93 ..... –

Pictet–Timber–P dy USD F. $88.48 ..... –

Pictet–Timber–P dy GBP F . £57.28 ..... –

Pictet–US Equity Growth Selection–I USD F $109.38 ..... –

Pictet–US Equity Growth Selection–P USD F... $105.80 ..... –

Pictet–US Eq Gr Sel–Pdy USD F .. $105.80 ..... –

Pictet–US Equity Growth Selection–R USD F... $103.06 ..... –

Pictet–US High Yield–HI CHF F.. 5 E SFr116.73 ..... –

Pictet–US High Yield–HI EUR F.. 5 E ∑78.18 ..... –

Pictet–US High Yield–HP CHF F . 5 E SFr115.42 ..... –

Pictet–US High Yield–HP EUR F . 5 E ∑77.30 ..... –

Pictet–US High Yield–I USD F. 5 E $116.23 ..... –

Pictet–US High Yield–P USD F 5 E $114.91 ..... –

Pictet–US High Yield–P dy USD F.. 5 E $109.55 ..... –

Pictet–US High Yield–R USD F 5 E $113.84 ..... –

Pictet–USA Index–P USD . 1 $93.50 ..... –

Pictet–USA Index–I USD F $94.51 ..... –

Pictet–USA Index–IS USD F $94.51 ..... –

Pictet–USA Index–P dy USD F.. $89.30 ..... –

Pictet–USA Index–R USD F. E $90.59 ..... –

Pictet–USA Index–R dy GBP F 1 E £58.27 ..... –

Pictet–USD Government Bonds–I F 2 $599.61 ..... –

Pictet–USD Government Bonds–P F .. 2 $580.09 ..... –

Pictet–USD Government Bonds–P dy F .. 2 $402.23 ..... –

Pictet–USD Liquidity–I F 2 $133.35 ..... –

Pictet–USD Liquidity–P F . 2 $131.39 ..... –

Pictet–USD Liquidity–P dy F 2 $84.80 ..... –

Pictet–USD Short Mid–Term Bonds–I F $126.36 ..... –

Pictet–USD Short Mid–Term Bonds–P F... $124.44 ..... –

Pictet–USD Short Mid–Term Bonds–P dy F $99.45 ..... –

Pictet–USD Sovereign Liquidity–I F . $102.07 ..... –

Pictet–USD Sovereign Liquidity–P F $101.72 ..... –

Pictet–USD Sovereign Liquidity–P dy F $100.21 ..... –

Pictet–Water–HP USD F. 5 $171.64 ..... –

Pictet–Water–HR USD F 1 E $160.33 ..... –

Pictet–Water–I EUR F .. 5 ∑142.99 ..... –

Pictet–Water–I USD F.. 5 $193.04 ..... –

Pictet–Water–P EUR.... 5 ∑131.64 ..... –

Pictet–Water–P USD F... $177.70 ..... –

Pictet–Water–P dy EUR F. ∑130.07 ..... –

Pictet–Water–P dy GBP F. 5 £114.13 ..... –

Pictet–Water–R USD F... $166.00 ..... –

Pictet–Water–R EUR...... ∑122.96 ..... –

Pictet–World Government Bonds–I EUR F . ∑141.71 ..... –

Pictet–World Government Bonds–I USD F 2 $191.03 ..... –

Pimco Fds: Global Investors Series Plc (IRL)PIMCO Europe Ltd, Nations House, 103 Wigmore St, London, W1U 1QS

http://gisnav.pimco–funds.com

Dealing: +353 1 241 7100

PIMCO Funds: +44 (0)20 7872 1316

FSA recognised

CommoditiesPLUS™ Strategy – Inst Acc $9.96 ..... –

Developing Local Markets – Inst Acc .. $12.84 ..... –

Diversified Income – Inst Acc $15.58 ..... –

Emerging Local Bond – Inst Acc . $12.72 ..... –

Emerging Markets Bond – Inst Acc . $32.17 ..... –

Emerging Markets Corp.Bd Fund Inst Acc F $11.15 ..... –

EuriborPLUS – Inv. Acc.. ∑11.26 ..... –

Euro Bond – Inst Acc..... ∑16.83 ..... –

Euro Credit – Inst Acc.... ∑11.47 ..... –

Euro Income Bond – Inst Acc F ∑9.75 –0.03 –

Euro Liquidity – Inst Dist ∑1 ..... –

Euro Long Average Duration – Inst Acc ∑14.77 ..... –

Euro Real Return – Inst Acc ∑11.28 ..... –

Euro Ultra Long Duration – Inst Acc. ∑19 ..... –

FX Strategies – Inst Acc ∑10.33 ..... –

Global Advantage – Inst Acc . $12.18 ..... –

Global Bond – Inst Acc .. $22.41 ..... –

Global Bond Ex–US – Inst Acc . $15.14 ..... –

Global High Yield Bond – Inst Acc $14.67 ..... –

Global Investment Grade Credit – Inst Income . $11.3 –0.07 –

Global Multi–Asset – Inst Acc .. $13.02 ..... –

Global Real Return – Inst Acc $15.93 ..... –

High Yield Bond – Inst Acc . $20.68 ..... –

Low Average Duration – Inst Acc. $13.67 ..... –

PIMCO EqS Pathfinder.Eur.Fd Inst Acc F... ∑9.46 ..... –

PIMCO EqS Pathfinder.Fd Inst Acc F $9.92 ..... –

Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $10.81 ..... –

StocksPLUS™ – Inst Acc $11.29 ..... –

Total Return Bond – Inst Acc $23.89 ..... –

UK Corporate Bond – Inst Acc.. £12.45 ..... –

UK Long Term Corp. Bnd Inst–Inst Acc. £13.17 ..... –

UK Sterling Inflation–Linked – Inst Acc. £16.54 ..... –

UK Sterling Long Average Duration – Inst Acc . £15.88 ..... –

UK Sterling Low Average Duration – Inst Acc .. £12.97 ..... –

UK Total Return Bond – Inst Acc . £12.25 ..... –

Unconstrained Bond – Inst Acc $11.2 ..... –

US Government Money Market – Inst Inc .. $1 ..... –

Pioneer Alternative Inv Mgmt Ltd (IRL)Regulated

Pioneer Long Short Europ Eqty EUR . ∑1623.78 ..... 1.12

Pioneer Long Short Europ Eqty USD . $1654.84 ..... 1.03

Pioneer Alternative Inv Mgt (Bermuda)Other International Funds

Mom Allweather Aug 31 . $255.81 –5.98 –

Mom Allweather Euro Aug 31 ∑133.21 –2.92 –

Pioneer AllWeather Div – I USD. $116.37 –2.85 –

Mom AssetMaster Aug 31 $856.21 +7.44 –

Mom DebtMaster Aug 31.. $263.95 ..... –

The Meteor Opps I.......... $137.87 ..... –

The Meteor Opps I.......... ∑138.40 ..... –

Momentum Allweather Strat II Master USD. $109.95 –2.57 –

Momentum Allweather Strat II Master EUR . ∑106.08 –2.32 –

Platinum Capital Management Ltdwww.ft.com/funds/PlatinumCapitalManagement


Platinum Global Dividend Fund – A (Final).. $69.71 ..... –

Platinum All Star Fund – A (Est) $100.01 ..... –

Platinum Dynasty (Final) . $110.38 ..... –

Platinum Emancipation (Est) $106.36 ..... –

Platinum Low Volatility Fund SICAV (Est) $9.95 ..... –

Platinum Nordic (Final) ... SKr524.05 ..... –

Platinum Maverick Enhanced (Final). $63.65 ..... –

Platinum Gold Advantage (Est).. ∑14.81 ..... –

Platinum Global Dividend UCITS Fund (Final) ... $75.45 ..... –

Polar Capital Funds Plc (IRL)Regulated

Japan USD ..................... $17.11 –0.44 –

Japan Class R JPY.......... Y987.23 –23.77 –

Global Technology USD .. $14.8100 +0.21 –

Global Technology Cls R USD. $13.0100 +0.18 –

Healthcare Opps USD ..... $9.4800 +0.04 –

Healthcare Opps Cls R USD. $13.4400 +0.07 –

UK ARF – Class 1 GBP.... £9.51 +0.22 –

UK ARF – Class R GBP.... £9.38 +0.22 –

Emerging Markets Growth Cls R USD $8.1900 –0.12 –

Emerging Markets Income Class R USD Dist ... $8.2200 –0.12 –





Polar Capital Funds Plc - Contd.Emerging Markets Income Cls R USD Acc.. $8.3500 –0.12 –

Insurance Fund Cls R USD Dist . $2.7058 +0.52 –

Insurance Fund Cls R USD Acc . $2.9347 +0.52 –

Polar Financial Opportunities Fund Cls R USD .. $7.4900 –0.08 –

Global Insurance Fund Cls R Hedged GBP Distribution £1.9444 +0.36 –

Global Insurance Fund Cls R Hedged GBP Acc F £1.9437 +0.36 –

Polar Capital LLP (CYM)Regulated

UK B Participating .......... £174.54 ..... –

European Conviction....... ∑135.63 ..... –

European Forager (Final) ∑240.20 ..... –

Policy Selection LimitedOther International Funds

Assured USD A............... $182.13 ..... –

Assured USD B............... $162.69 ..... –

Assured USD C............... $174.56 ..... –

Assured USD D............... $164.84 ..... –

ASSURED F USD............. $99.98 ..... –

Assured GBP B ............... £144.4 ..... –

Assured GBP C ............... £136.57 ..... –

Assured EUR D ............... ∑112.32 ..... –

Assured EUR B ............... ∑103.13 ..... –

Assured CHF E ............... SFr73.71 ..... –

Polunin Capital Partners LtdOther International funds

Developing Countries 'A' $34.66 ..... –

Emerging Markets Active $27.46 ..... –

Luxcellence Em Mkts Tech . $744.28 ..... –

Em Mkts Strategy Developing $660.65 ..... –

Em Mkts Strategy Small Cap . $1006.56 ..... –

Private Fund Mgrs (Guernsey) Ltd (GSY)Regulated

Monument Growth Sep 20 £314.93 318.35 ..... 1.00

Prospect Asset Management (CI) LtdOther International Funds

Prospect Japan undil NAVZ(1–10) $1.73 ..... –

Prosperity Capital Management Ltd (CYM)Regulated

RPF A Shares Sep 15 ..... $212.4 ..... –

RPF D Sep 15................. $12.58 ..... –

PQF A Shares Sep 15 ..... $538.2 548.9 ..... –

PQF B Shares Sep 15 ..... $488.7 497.2 ..... –

PCF Sep 15 .................... $398.3 406.1 ..... –

CAPF Aug 31 .................. $7.96 ..... –

Prusik Investment Management LLP (IRL)Regulated

Prusik Asia Fund Class A Non Dis (Final) $147.06 ..... –

Prusik Asia Fund Class B Dis (Final) . $147.10 ..... –

Prusik Asia Fund Class C GBP (Final) £79.93 ..... –

Prusik Asia Fund Class D SGD (Final) S$203.68 ..... –

Prusik Asia Smaller Companies Class A (Est) ... $126.98 ..... –

Prusik Asia Smaller Companies Class B (Est)... $127.10 ..... –

Prusik Asia Smaller Companies Class C (Est)... £66.07 ..... –

Prusik Asia Smaller Companies Class D (Est)... S$174.95 ..... –

Purisima Investment Fds (CI) Ltd (JER)Regulated

PCG B E .................. 5d 107.87 –1.33 0.00

PCG C E .................. 5d 106.63 –1.31 0.00

Putnam Investments (Ireland) Ltd (IRL)Regulated

Putnam New Flag Euro High Yield Plc – E Sep 23 ∑844.64 –9 –

Putnam New Flag Euro High Yield Plc – M Sep 23 ∑768.46 –8.18 –

R & H Fund Services (Jersey) Ltd (JER)Regulated

The Global Growth Pfolio £1.4002 1.4739 ..... 0.00

The Equity Income Fund . £0.8909 0.9447O ..... 0.00

Brewin Dolphin Portfolios Limited (OEIC)

Bond Fund GBP .............. £9.252 ..... 4.8336161894

Income Fund Sterling ..... £2.7828 ..... 9.2847194943

The Discretionary Pfolio.. £10.7805 ..... 0

RBC Offshore Fund Managers Limited (GSY)PO Box 246, St Peter Port, Guernsey 01481 744141

FSA Recognised

Global Funds

Contl Euro Class F ....... 0 ∑15.955 16.011 +0.391 –

Contl Euro Class Acc F 0 ∑16.579 16.637 +0.406 –

Canadian Class F......... 0 C$69.548 69.802 –2.165 –

Canadian Class Acc F .. 0 C$69.793 70.048 –2.173 –

USA Class F................. 0 $46.771 46.838 –0.710 –

USA Class Acc F .......... 0 $46.771 46.838 –0.710 –

Dollar Intl Cap Class F . 0 $9.454 9.504 –0.670 –

Dollar Intl Cap Class Acc F.. 0 $9.508 9.559 –0.673 0.00

RBC Offshore Fund Managers Limited (GSY)Regulated

ARC Fund Ltd Class B..... $168.5373 ..... –

RBC Regent Strategy Fund Limited (JER)Regulated

Asia Pacific Equity Class B $125.66 ..... –

Canadian Equity Class B. C$137.87 ..... –

European Equity Class B. ∑110.19 ..... –

Intl Ex North America Equity Class B. $101.64 ..... –

UK Bond Class B ............ £105.24 ..... –

UK Equity Class B........... £131.49 ..... –

US Dollar Capital Growth Class . $10.56 ..... –

US Equity Class .............. $97.01 ..... –

For RMF Investment Management Funds see Man Investments

Rasmala Investment Bank LtdDubai International Financial Centre, The Gate Village, Building 10, Level 1

P.O. Box 31145, Dubai, UAE Tel: +971 4 363 5600 Fax: +971 4 363 5635

www.rasmala.com


Rasmala MENA Equity Opps Fund (Final)... $96.66 ..... –

Rasmala GCC Fixed Income Fund (Final) $120.46 ..... –

Arabian Markets Growth Equity Fund ..... –

Rasmala GCC Fixed Income Fund. ..... –

Rasmala Palestine Equity A USD Acc NAV .. ..... –

Robeco Asset Management (LUX)Coolsingel 120, 3011 AG Rotterdam, The Netherlands.

tel (31)10 2242381 www.robeco.com

http://funds.ft.com/funds/robeco/Sicav

FSA Recognised

Asia–Pacific Equities (EUR) ∑74.02 ..... –

Chinese Equities (EUR) 5 ∑42.63 ..... –

Em Stars Equities (EUR). 3 ∑122.07 ..... –

Emerging Markets Equities (EUR).. 5 ∑111.47 ..... –

Flex–o–Rente (EUR)..... 5 ∑110.20 ..... –

Glob.Consumer Trends Equities (EUR) 5 ∑70.53 ..... –

High Yield Bonds (EUR).. ∑90.63 ..... –

Lux –O– Rente (EUR) ... 3 ∑125.63 ..... –

Natural Ress Equities (EUR) ∑75.78 ..... –

New World Financials (EUR) 5 ∑24.33 ..... –

SAM Sust. Agrib.Eq. D. 5 ∑91.86 ..... –

US Premium Equities (EUR). 5 ∑94.19 ..... –

US Premium Equities (USD) $103.71 ..... –

Edmond de Rothschild GroupOther International Funds

Asian Capital Holdings A. $101.18 ..... –

Asian Capital Holdings B. ∑73.46 ..... –

European Capital Hldgs .. ∑216.60 ..... –

Leveraged Cap Hldgs NV $248.32 ..... –

Leveraged Cap Hldgs NV ∑188.10 ..... –

Leveraged Cap Hldgs Gold $415.06 ..... –

Trading Cap Hldgs NV..... $190.10 ..... –

Trading Cap Hldgs NV..... ∑157.69 ..... –

Royal Bank of Scotland (IRL)RBS Asset Management (Dublin) Limited

Guild Hse PO Box 4935 Guild St ,IFSC Dublin 1 00 353 1 642 8400

FSA Recognised

RBSG Investment Programmes

RBSG Cont Eur Spec Equity Ser 3 ∑67.37 –1.54 0.48

RBSG Cont Eur Spec Equity Ser 7 ∑67.35 –1.54 0.43

RBSG US Specialist Equity Ser 3 . $17.71 +0.10 0.02

RBSG US Specialist Equity Ser 7 . $17.71 +0.10 0.00

RBSG UK Equity Index Programme Ser 3 .. £20.50 +0.06 2.88

RBSG UK Specialist Eqty Ser 3. £14.12 –0.16 1.26


Royal Bank of Scotland - Contd.RBSG UK Sovereign Bond Index Prog Ser 3 £14.13 ..... 3.51

RBSG Contl Eurp Eqty Index Prog Ser 3 ∑221.91 +1.20 2.44

RBSG Japan Specialist Equity Prog Ser 3.. Y3145.00 –24.00 0.70

RBSG Japan Specialist Equity Prog Ser 7.. Y3134.00 –23.00 0.66

RBSG US Equity Index Programme Ser 3 .. $39.62 +0.24 0.96

RBSG Pacific Basin Eqty Ser 3 . $42.28 –1.20 1.40

RBSG Pacific Basin Eqty Ser 7 . $42.70 –1.20 1.31

RBSG Emerging Markets Ser 3 $28.53 –0.37 0.00

RBSG Emerging Markets 7. $28.48 –0.37 0.96

RBSG Global Investment Grade Bond GBP Series 6 £120.91 –0.26 3.35

RBSG Global Investment Grade Programme GBP S3 £111.35 –0.24 3.38

RBSG UK Sovereign Bond Index Programme Series 6 £10.96 ..... 3.48

Absolute Rtn Multi Asset Prog SER 3 GBP . £9.79 ..... 0.00

* 30 day average yield

Royal London Asset Mgmt (Ireland) Ltd (IRL)PO Box 9428, Dublin 1, Ireland 08456 040404

FSA Recognised

Royal London Asset Management Bond Funds PLC

Sterling Extra Yield Bond A. £0.9720 ..... 8.15

Sterling Extra Yld Bd B .. £0.9596 ..... 7.33

Russell Investment Company Plc (IRL)Russell Investment Group 10 Regent St Ldn SW1Y 4PE 020 7024 6000

www.ft.com/funds/russell

FSA Recognised

Cont Eur Eq B................ ∑16.68O ..... 0.3

Cont Eur Eq F F ............. ∑900.62O ..... 0.29

Cont Eur Eq SH I F ......... £66.55 ..... –

Cont Eur Eq A ................ ∑18.99O ..... 0.34

Emerg Mkts Eq B .......... $17.73O ..... 0.76

Global Bond B ............... $19.63 ..... –

Japan Equity B .............. Y767.8 ..... 1.64

Pacific Basin B .............. $18.74O ..... 0.96

UK Index Linked I .......... £16.89 ..... –

US Bond B F................ 5 $15.92 ..... –

US Equity B ................... $8.649 ..... –

US Equity EH A F ........... ∑91.94 ..... –

US Small Cap Eq B ...... 5 $13.65 ..... 0.43

World Equity II B F ......... $8.202 ..... –

RIC – OMIGSA

Acadian European Eq I F 5 ∑6.862 ..... –

Acadian Global Eq A F . 5 ∑7.72 ..... –

Global (EX US) Bond A F. 0 $17.59 ..... –

Global Bond B F........... 0 $18.37 ..... –

Global Credit Fund A F. 0 $12.03 ..... –

Gbl Money Market A F . 0 $12.06 ..... –

US Core Bond A F........ 0 $14.15 ..... –

US Growth Equity A F .. 0 $12.78 ..... –

Value Global Equity F... 0 $16.77 ..... 0.61

Emerg Markets EQ A ..... £17.93 ..... –

Emerg Markets EQ B F 2 $8.252 ..... –

Russell Investment Company II PLC (IRL)Russell Investment Group , 10 Regent St, Ldn SW1Y 4PE 020 7024 6000

FSA Recognised

Euro Fixed Inc I ACC F ... £20.01O ..... –

Pan European Eq I F ...... £12.09 ..... –

UK Equity Plus B F......... £96.89 ..... –

US Growth I Acc F ......... £9.331 ..... –

US Quant B F................. $11.12 ..... –

World Equity B............... $13.65 ..... –

World Equity I F ........... 5 £15.88 ..... –

World Equity SH–B F ..... £93.44 ..... –

Russell Multi–Manager Fds Plc (IRL)Regulated

GBL 35 Multi MNGR A .... $124.25 ..... –

GBL 35 Multi MNGR B .... $121.14 ..... –

GBL 50 Multi MNGR A .... $123.32 ..... –

GBL 50 Multi MNGR B .... $118.72 ..... –

GBL 70 Multi MNGR A .... $118.9 ..... –

GBL 70 Multi MNGR B .... $113.52 ..... –

GBL 90 Multi MNGR A .... $104.56 ..... –

GBL 90 Multi MNGR B .... $106.88 ..... –

GBL Defensive A............. $107.01 ..... –

Russell Jadwa Shariah Based Funds PLC. (IRL)Regulated

Emerging Markets A....... $7.94 ..... –

World Equity A................ $7.577 ..... –

SVG Investment Managers LimitedOther International

SVG UK Focus Fd Cls I .... £14.384 ..... –

SVG UK Focus Fd Cls A... £13.993 ..... –

SVG European Focus Fd Cls A ∑5.164 ..... –

SVG European Focus Fd Cls R ∑5.15 ..... –

SW Mitchell Capital LLP (CYM)Regulated

S W Mitchell Class A Shares Euro (Final) Aug 31 ∑219.90 ..... –

S W Mitchell Class B Shares USD (Final) Aug 31 $215.71 ..... –

Sabre Fund Management Limited14 Buckingham Gate, London SW1E 6LB


Sabre Style Arbitrage Fund Limited – USD . $192.95 ..... –

Sabre Style Arbitrage Fund Limited – Euro . ∑189.47 ..... –

SAM (LUX)Tel. +41 44 653 10 10 www.sam–group.com

Regulated

SAM Smart Energy Fund GBP/A £12.41 ..... –

SAM Smart Materials Fund GBP/A £96.81 ..... –

SAM Sust. Climate Fund GBP/A £56.49 ..... –

SAM Sust. Global Active Fd EUR/B ∑94.32 ..... –

SAM Sust. Healthy Liv Fd EUR/B .. ∑92.24 ..... –

SAM Sust. Multi–Theme Fd EUR/B ∑100.05 ..... –

SAM Sust. Water Fund GBP/A £106.35 ..... –

Sarasin Funds Management (Ireland) Ltd (IRL)Georges Court, 54–62 Townsend Street, Dublin 2, Ireland. 00 353 1 434 5111

Regulated

EquiSar Gbl Thematic (GBP) Inc A. £20.10 ..... 1.08

EquiSar Gbl Thematic (GBP) Acc A £23.00 ..... 1.08

EquiSar Gbl Thematic (USD) Inc A $16.41 ..... 0.64

EquiSar Gbl Thematic (USD) Acc A $17.79 ..... 0.64

GlobalSar Dynamic (GBP) Inc A . £26.15 ..... 3.00

GlobalSar Dynamic (GBP) Acc A £47.56 ..... 3.00

GlobalSar Dynamic (USD) Inc A. $41.22 ..... 2.99

GlobalSar Dynamic (USD) Acc A $65.94 ..... 2.99

GlobalSar Cautious (GBP) Inc A . £8.67 ..... 1.92

GlobalSar Cautious (GBP) Acc A £9.32 ..... 1.92

GlobalSar Cautious (USD) Inc A . $8.22 ..... 1.61

GlobalSar Cautious (USD) Acc A $8.67 ..... 1.61

GlobalSar Income (GBP) Inc A £9.79 ..... 4.51

GlobalSar Income (GBP) Acc A.. £14.40 ..... 4.51

Real Estate Equity Gbl (GBP) Inc A £9.59 ..... 2.66

Real Estate Equity Gbl (GBP) Acc A .. £11.58 ..... 2.66

Sust Eq Real Est Glob (USD) Inc A. $6.59 ..... 2.68

Sust Eq Real Est Glob (USD) Acc A $7.54 ..... 2.68

Sarasin Investmentfonds SICAV (u) (LUX)69 Route d'Esch L–1470 Luxembourg

FSA Recognised

Sar Sust Bd CHF............ SFr157.91 165.81 ..... –

Sar BondSar USD .......... $105.85 111.14 ..... –

Sar BondSar Wrld.......... ∑154 161.7 ..... –

Sar Curr Opp (CHF)........ SFr93.64 98.32 ..... –

Sar Curr Opp (EUR)........ ∑109.45 114.92 ..... –

Sar Curr Opp (CHF) F ..... SFr94.85 99.59 ..... –

Sarasin EmergingSar – New Frontiers . $119.73 125.72 ..... –

Sar Emerging–Gl ........... $283.2 297.36 ..... –

Sar EquiSar–Gl.............. ∑113.83 119.52 ..... –

Sar EquiSar–Gl F ........... ∑114.93 120.68 ..... –

Sar EquiSar Int Inc A 1a E ∑92.42 92.42 ..... –

Sar EquiSar Int Inc B ..... ∑92.42 92.42 ..... –

Sar Eq–IIID EUR............. C ∑133.47 140.14 ..... –

Sar Gl Ret (EUR) ............ ∑121 127.05 ..... –

Sar Gl Ret (EUR) F.......... ∑121.35 121.35 ..... –

Sarasin GlobalSar – IIID (CHF).. SFr299.32 314.29 ..... –

Sarasin GlobalSar – IIID (EUR).. ∑229.42 240.89 ..... –

Sar Gl Opt B EUR ........... C ∑98.41 103.33 ..... –


Sarasin Investmentfonds SICAV - Contd.Sar New Power A .......... ∑40.05 42.05 ..... –

Sar New Power B .......... ∑39.99 41.99 ..... –

Sar New Power F .......... ∑41.17 43.23 ..... –

Sar Oeko Eq–Gl A.......... C ∑92.66 97.29 ..... –

Sar Oeko Eq–Gl B.......... ∑92.77 97.41 ..... –

Sar Oeko Eq–Gl F .......... ∑94.43 99.15 ..... –

Sar Oeko Portf............... ∑146.17 153.48 ..... –

Sar Real E Gl A .............. ∑94.07 98.77 ..... –

Sar Real E Gl B .............. ∑102.57 107.7 ..... –

Sar Struc Ret (EUR) ....... ∑122.29 128.4 ..... –

Sar Sust Bd EUR............ ∑105.89 111.18 ..... –

Sar Sust Eq–Eu A .......... ∑51.3 53.87 ..... –

Sar Sust Eq–Eu B .......... ∑51.73 54.32 ..... –

Sar Sust Eq–Gl .............. ∑78.35 82.27 ..... –

Sar Sust Eq–Gl EMA B... $79.97 83.97 ..... –

Sar Sust Eq–Gl EMA M F . $80.75 80.75 ..... –

Sar Sust Eq–Real E Gl ... ∑85.35 89.62 ..... –

Sar Sust Eq USA............ $89.14 89.14 ..... –

Sar Sust Water A .......... ∑86.13 86.13 ..... –

Sar Sust Water F ........... ∑87.26 87.26 ..... –

Sarasin Multi Label SICAV (LUX)Regulated

RM Strategic Fund (EUR) ∑6897.19 7242.05 ..... –

Schroder Property Managers (Jersey) LtdOther International Funds

Indirect Real Estate SIRE £105.50 109.81 ..... 2.6

Schroder Inv Mgmt (Guernsey) Ltd (GSY)PO Box 255, St Peter Port, Guernsey 01481 745 001

FSA Recognised

Offshore Cash ............. 0 £1.78003226 ..... 0.63

Offshore Cash B F ....... 0 £1.79041668 ..... 0.63

Schroder Inv Mgmt (Guernsey) Ltd (GSY)Regulated

Emerging Markets.......... $30.86 32.661 ..... 0

Institutional Developing Markets Fund A $23.911 25.312 ..... 0

Institutional Developing Markets Fund B $23.699 25.087 ..... 0

SEB Asset Management S.A. (LUX)www.seb.se

funds.ft.com/SEBAssetManagement

Regulated

SEB Ethical Europe Fund ∑1.7193 ..... –

SEB Europe Fund ........... ∑2.5130 ..... –

SEB European Equity Small Cap ∑109.54 ..... –

SEB Asset Selection Fund EUR . ∑14.8388 ..... –

SEB Russia Fund ............ ∑8.4867 ..... –

SEB Eastern Europe ex Russia.. ∑2.2342 ..... –

SEB Eastern Europe Small Cap Fund ∑2.4822 ..... –

SEB Key Recovery Fund . ∑93.3844 ..... –

SEB Key Hedge Fund...... ∑102.2950 ..... –

SEB Key Europe Equity L/S . ∑92.4613 ..... –

SEB Key Select C............ ∑9.7887 ..... –

SEB Key Select I ............. ∑9.9589 ..... –

SEB Nordic Fund ............ ∑4.9958 ..... –

SIA (SIA Funds AG) (LUX)Regulated

LTIF Alpha...................... ∑131.96 ..... –

LTIF Alpha II ................... ∑98.01 ..... –

LTIF Classic.................... ∑191.05 ..... –

LTIF Classic II ................. ∑100.52 ..... –

LTIF Em.Mkt Value ......... ∑67.37 ..... –

LTIF Natural Resources .. ∑89.46 ..... –

SIA (SIA Funds AG) (CH)Other International Funds

LTIF Stability Growth ...... SFr177.20 ..... –

SKAGEN Funds (NOR)PO Box 160 , 4001 Stavanger, Norway

Tel (47) 51 21 38 58 www.skagenfunds.com

www.ft.com/funds.ft.com/funds/skagen/Skagenfds

FSA Recognised

SKAGEN Global.............. ∑86.0044 ..... –

SKAGEN Kon–Tiki........ 0 ∑56.2065 ..... –

SKAGEN Vekst............... ∑135.9362 ..... –

SKAGEN Tellus .............. ∑13.2074 ..... –

Sloane Robinson LLP (CYM)Regulated

S.R. Global Fund Inc.

A–Europe Sep 21 ........... $350.8947 ..... –

B–Asia Sep 21 ............... $633.3414 ..... –

C–International Sep 21... $452.9044 ..... –

F– Europe Euro Sep 21... ∑234.6037 ..... –

G1 Emerging Mkts Sep 21 $1144.9763 ..... –

H – Japan Sep 21 .......... $77.3515 ..... –

SR Phoenicia Inc

Phoenicia A Sep 21 ........ $411.5462 ..... –

Smith & Williamson Investment Fds (IRL)12/13 Exchange Place, IFSC, Dublin 1 00 353 1 612 6476

FSA Recognised

MM Cautious Growth Fund F £14.315 ..... –

Cash Fund F................ 0 100.15 ..... 0.60

Short Dated Corporate Bond F 5 £1.0530O ..... –

Boulder Investment F .... £1.458 ..... –

Enterprise A F ............. 3 £153.6012 ..... –

Smith & Williamson Investment Mgmt Ltd (BMU)Regulated

Bermuda Capital Co Ltd (Final) Sep 20 . $292.42O ..... –

Mid Ocean World Inv (Final) Sep 20 . $453.78 ..... –

Pancurri Investment Ltd (Est) Sep 20 $1169.20 ..... –

Spinnaker Capital GroupOther International Funds

Global Emg Markets Ser K1 Dec 31 . $992.46 ..... –

Global Opportunity Ser K1 Dec 31 $575.95 ..... –

State Street Global Advisors Ltd Fds (IRL)20 Churchill Place, London E14 5HJ

Marketing: +44 (0)20 3395 6000 Dealing: 00353 1 242 5401

FSA Recognised

State Street Global Advisors Liquidity Plc

USD Liquidity H ............. $1.00 ..... 0.09

GBP Liquidity H ............. £1.00 ..... 0.67

EUR Liquidity H.............. ∑1.00 ..... 1.05

State Street Global Advisors Fixed Income plc

Abs. Ret. Global Bd II Cls B $10.4219 –0.0042 –

Abs. Ret. Global Bd II Cls I F . E ..... –

World Brd Inv. Grd. Bd SGD . S$11.8529 –0.0237 –

World Brd Inv. Grd. Bd Cls B F $12.1198 –0.0015 –

EMU Govt Bd Cls B ...... 3 ∑13.6404 +0.0107 –

EMU Govt Bd Cls I ....... 3 ∑13.5315 +0.0104 –

EMU Govt Long Bd II Cls I. 3 ∑12.4580 +0.0251 –

Euro Brd Inv. Grd Bd Cls B 3 E ∑11.8388 (z) –

Euro Brd Inv. Grade Bd Cls I 3 ∑12.2506 –0.0019 –

Euro Corp Bd Cls B...... 3 ∑11.7590 (z) –

Euro Inflation Link Bd Cls I . ∑10.6786 –0.0490 –

Euro Corp Bd Cls I ....... 3 ∑13.6503 –0.0345 –

Gbl. Inflation Link Bd Cls I F.. E ..... –

UK Govt Bd Cls B ......... 3 £16.6264 +0.0011 –

UK Govt Bd Cls I ............ £16.5283 +0.0010 –

US Corp Bd Cls I .......... 3 $15.1279 –0.1366 –

US Govt Bd Cls B ......... 3 $15.8234 –0.0731 –

US Govt Bd Cls I .......... 3 $15.7310 –0.0728 –

World Brd Inv. Grd. Bd Cls I 3 $16.6096 –0.0023 –

World Govt Bd Index Cls B . 3 $16.1678 +0.0166 –

World Govt Bd Index Cls I $16.0528 +0.0163 –


Stenham Asset Management IncOther International Funds

Stenham Universal USD.. $387.4114 ..... –

Stenham Universal EUR.. ∑122.3614 ..... –

Stenham Universal GBP.. £133.4469 ..... –

Stenham Universal II USD . $146.5256 ..... –

Stenham Universal II GBP . £143.2731 ..... –

Stenham Universal II EUR . ∑127.6290 ..... –

Stenham Growth USD..... $168.1284 ..... –

Stenham Trading Port. ... $4838.1172 ..... –

Stenham Quadrant USD.. $381.1949 ..... –

Stenham Quadrant Cl B .. $357.3061 ..... –

Stenham Asia EUR.......... ∑94.0018 ..... –

Stenham Asia GBP ......... £95.6444 ..... –

Stenham Asia USD ......... $119.3668 ..... –

Stenham Gold USD......... $329.9643 ..... –

Stenham Multi Strategy EUR.. ∑102.898 ..... –

Stenham Multi Strategy GBP . £106.0572 ..... –

Stenham Multi Strategy USD . $107.0572 ..... –

Stenham Global Resources EUR ∑115.0425 ..... –

Stenham Global Resources GBP £119.764 ..... –

Stenham Global Resources USD $121.1362 ..... –

Stenham Managed Fund EUR ∑98.1487 ..... –

Stenham Managed Fund GBP £101.6296 ..... –

Stenham Managed Fund USD $101.9357 ..... –

Stigma Funds (LUX)Regulated

Macro Cyclical Acc Class B . ∑92.50000 ..... –

Macro Cyclical Acc Class C . ∑92.44000 ..... –

Stratton Street Capital (CI) Limited (GSY)Regulated

Wonda Bond & Currency Fund (USD) $109.72 ..... –

Wonda Bond & Currency Fund (JPY). Y11176.55 ..... –

Fine Wine Geared Fund .. £0.9461 ..... –

Japanese Synthetic Warrant.. $1.91 ..... –

Asia Synthetic Warrant Fund . $6.27 ..... –

Renminbi Bond Fund USD Class $140.12 ..... –

Renminbi Bond Fund GBP Class £135.30 ..... –

Renminbi Bond Fund SGD Class S$134.83 ..... –

Renminbi Bond Fund YEN Class Y14302 ..... –

Renminbi Bond Fund EUR Class ∑93.63 ..... –

Poland Geared Growth.... £0.9706 ..... –

E. I. Sturdza Strategic Management Limited (GSY)Regulated

Nippon Growth Fund Limited . Y52074 ..... –

Strat Blue Star Resources Fd EUR ∑1371.60 ..... –

Strat Blue Star Resources Fd USD $1629.51 ..... –

Strat Evarich Japan Fd Ltd JPY . Y55000.00 ..... –

Strat Evarich Japan Fd Ltd USD $555.24 ..... –

Strat Fd Ltd Gbl Opps Fd USD (Est) .. $3391.60 ..... –

Strat Fd Ltd Gbl Opps Fd EUR (Est) .. ∑2557.99 ..... –

Strat Fd Ltd US Growth Fd $469.18 ..... –

Strat Global Innovation fd Ltd EUR ∑1096.48 –44.96 –

Strat Global Innovation fd Ltd USD $1114.35 –46.00 –

E.I. Sturdza Funds PLC (IRL)Regulated

Strategic China Panda Fund USD . $1746.75 ..... –

Strategic China Panda Fund Hedged EURO . ∑1726.16 ..... –

Strategic China Panda Fund Hedged Sterling... £1662.34 ..... –

Nippon Growth (UCITS) Fund JPY Class A shares Y53088 ..... –

Nippon Growth (UCITS) Fund JPY Class C Dis shares Y43338 ..... –

Nippon Growth (UCITS) Fund JPY Class B Acc shares Y44758 ..... –

Strategic Euro Bond Fund Distributing Class Shares ∑1020.66 ..... –

Strategic Euro Bond Fund Accumulating Class Shares ∑1068.88 ..... –

Strategic Emerging Europe Fund Hedged Euro Class ∑965.19 ..... –

Strategic Emerging Europe Fund USD Class $963.24 ..... –

Strategic Europe Value Euro Class ∑93.74 ..... –

TT International (CYM)Regulated

TT Asian Opportunities Fund.. $114.16 ..... –

TT European Long/Short Feeder SP Class A ∑99.80 ..... –

TT European Long/Short Feeder SP Class B $99.52 ..... –

TT European Long/Short Feeder SP Class C £103.51 ..... –

TT Equity Macro Fund Europe Feeder SP Class A ∑97.15 ..... –

TT Equity Macro Fund Europe Feeder SP Class B $96.31 ..... –

TT Equity Macro Fund EUR Feeder SP Class C.. £97.05 ..... –

TT Financials Long/Short Fd A .. $145.27 ..... –

TT Financials Long/Short Fd B.. ∑144.05 ..... –

TT Financials Long Short Fund Ltd Class F . ..... –

The TT International Fund Feeder SP Class A .. ∑93.04 ..... –

The TT International Fund Feeder SP Class B .. $95.80 ..... –

TT Mid–Cap Eurp Long/Short Fd Ltd A.. ∑274.67 ..... –

TT Mid–Cap Eurp Long/Short Fd Ltd B.. $221.03 ..... –

TT Mid–Cap Europe Long/Short Fund Ltd Class C ..... –

TT International (IRL)Regulated

TT European Eqty Fd Class A Sep 23 ∑9.872 +0.068 –

TT UK Equity Fd Sep 23.. £14.513 +0.060 –

TT Europe Ex–UK Equity Fd Sep 23.. £15.737 +0.032 –

Eurozone Equity Fund..... ∑7.062 +0.040 –

TT International Asia Pacific Equity Fund – Class A ..... –

TT International Emerging Markets Equity Fund $7.603 –0.207 –

Tarchon Capital Management (CYM)Regulated

Tarchon Multistrategy (A2) ∑134.96 ..... –

Tarchon MS (2x) (A4X).... ∑134.26 ..... –

Tarchon MS (2x) (A4W)... £114.32 ..... –

Tarchon Asia .................. ∑101.81 ..... –

Tarchon Equity EUR........ ∑157.88 ..... –

Tarchon Equity USD........ $94.27 ..... –

Tarkus Funds SAOther International Funds

Index Tarkus Fund.......... $72.64 ..... –

The Hartford International Funds (IRL)Regulated

Gbl Govt Bond (Ex Japan) Index (GBP) .. £1539.8957 –7.8405 –

UK Corporate Bond......... £1160.2688 –9.5174 –

Gilt ................................. £1346.1279 –8.459 –

Global Eq (Ex Japan) Index Fund .. Y0.7642 –0.0246 –

Global Eq (ex Japan) Class HJ4. Y0.7959 –0.0257 –

Global Eq (ex Japan) Class JP5. Y0.5747 –0.0247 –

Global Eq Ex Japan Index Fund (Hedge) Y0.5262 –0.0226 –

Gbl Govt Bond (Ex Japan) Index Y0.8083 +0.0005 –

Gbl Govt Bond (ex Japan) Class JP4 . Y0.7923 +0.0004 –

Japan Equity Index Fund Y0.4654 –0.01 –

Japan Equity Class JP3 .. Y0.5648 –0.0122 –

The National Investor (TNI)www.tni.ae


UAE Blue Chip Fund........ AED4.7171 ..... –

TNI Funds Ltd (BMU)

MENA Special Sits Fund . $1016.704 ..... –

TNI Funds Plc (Ireland)

MENA UCITS Fund.......... $953.37 ..... –

The Nile Growth Company (LUX)Regulated

Nile Growth Fd A dis....... $24.35 –0.31 –

The Wanger Investment Company PLC (IRL)Regulated

European Smaller Cos .... ∑37.03 –0.44 –

US Smaller Cos .............. $42.35 +0.43 –


Traditional Funds (IRL)Northern Trust, George Court 54–62 Townsend Street, Dublin 2 Rep of Ireland 00 353 1 542 2000

FSA Recognised

Absolute Return CHF Acc. SFr9.3369 ..... –

Absolute Return EUR Acc. ∑9.4575 ..... –

Absolute Return NOK Acc NKr97.0193 ..... –

Absolute Return SEK Acc . SKr95.5451 ..... –

Absolute Return Sterling Shares . £9.4624 ..... –

Absolute Return USD Acc $9.4606 ..... –

BSI Bond Opportunity Fund Eur Acc .. 5 ∑9.87 10.36 –0.04 –

BSI Bond Opportuinty Fund USD Acc . 5 $9.83 10.32 –0.03 –

BSI Bond Opportunity Fund CHF Acc SFr9.66 ..... –

Credit Select A EUR Dis . ∑10.09 ..... –

Credit Select A USD Dis. $10.04 ..... –

Credit Select A EUR Acc ∑10.64 ..... –

Credit Select A Acc........ £10.62 ..... –

Credit Select A Dis ........ £10.06 ..... –

Credit Select A USD Acc $10.58 ..... –

Credit Select A NOK Dis. NKr100.8 ..... –

Credit Select B Acc........ £10.55 ..... –

Credit Select B Dis ........ £10.16 ..... –

Credit Select B USD Acc $10.68 ..... –

Credit Select B USD Dis. $10.12 ..... –

Credit Select B EUR Dis . ∑10.19 ..... –

European Absolute Return Eur Cls . 5 E ∑19.94 20.93 +0.06 –

European Absolute Return GBP Cls 5 E £16.85 17.69 +0.05 –

European Absolute Return Cls A New Euro Acc 5 ∑10.86 11.40 +0.03 –

European Absolute Return Cls A GBP Acc 5 £9.75 10.23 +0.03 –

European Absolute Return Cls A New GBP Dist 5 £10.16 10.67 +0.03 –

European Absolute Return Cls B GBP Dist . £11.43 12.11 (z) –

European Absolute Return Cls B Euro Acc ... 5 ∑9.83 10.32 +0.03 –

High Income EUR Dis..... ∑10.32 ..... –

High Income New Euro Acc ∑11.72 ..... –

High Income GBP Dis..... CE £10.90 ..... –

High Income USD Dis .... CE $10.10 ..... –

High Income New GBP Acc £10.48 ..... –

High Income New GBP Dis . £7.73 ..... –

High Income New USD Dis . $7.68 ..... –

High Income New NOK Dis. NKr78.39 ..... –

High Income New EUR Dis . ∑7.47 ..... –

High Income New USD Acc $10.53 ..... –

Global Bd (£) GBP Dis .. 5 £14.36O 15.07 –0.04 –

Global Bd (£) Acc......... 5 £16.67 17.50 –0.05 –

Global Bd (£) EUR Dis .. 5 ∑12.66O 13.30 –0.04 –

Global Bd (£) USD Dis .. 5 $13.04O 13.69 –0.04 –

Global Bd (∑) Acc......... 5 ∑14.34 15.06 –0.03 –

Global Bd (∑) Dis ......... 5 ∑12.62 13.26 –0.02 –

Global Bd ($) Acc......... 5 $12.43 13.05 +0.01 –

Global Bd ($) Dis ......... 6 $10.90 11.55 +0.01 –

Global Credit A EUR Dis . ∑9.72 ..... –

Global Credit A USD Dis. $9.66 ..... –

Global Credit A EUR Acc ∑10.44 ..... –

Global Credit A Acc........ £10.41 ..... –

Global Credit A Dis ........ £9.69 ..... –

Global Credit A USD Acc $10.37 ..... –

Global Credit Fund Class A NOK Dis. NKr99.43 ..... –

Global Credit B Acc........ £10.48 ..... –

Global Credit B Dis ........ £9.77 ..... –

Global Credit Fund Class A CHF Acc Share ..... –

Global Credit Fund Class B CHF Acc Shares ... SFr9.43 (z) –

Global Credit B USD Acc $10.46 ..... –

Global Credit B EUR Acc ∑10.52 ..... –

Multi Select GBP Acc..... £9.63 ..... –

Multi Select EUR Acc ..... ∑8.91 ..... –

Multi Select NOK Acc .... NKr80.04 ..... –

Multi Select USD Acc..... $7.69 ..... –

Real Estate Securities Cls A GBP Acc . 5 £9.87 10.37 –0.11 –

Real Estate Securities Cls A GBP Dist . 5 £9.72 10.21 –0.11 –

Real Estate Securities Cls A EUR Acc . 5 ∑9.77 10.26 –0.11 –

Real Estate Securities Cls B GBP Acc . 5 £9.94 10.44 –0.11 –

Real Estate Securities Cls B GBP Dist. 5 £9.77 10.25 –0.10 –

Real Estate Securities Cls B EUR Acc . 5 ∑9.81 10.30 –0.10 –

World Government Bond (£) Acc .. 5 £11.34 11.91 –0.05 –

World Government Bond (£) 5 £10.90O 11.45 –0.04 –

Water & Agriculture Abs Rtn Fund – US Dollar Acc 5 $11.67 12.26 –0.07 –

Water & Agriculture Abs Rtn Fund – US Dollar Dis 5 $10.32 10.83 –0.06 –

Water & Agriculture Abs Rtn Fund – Euro Acc 5 ∑11.72 12.31 –0.07 –

Water & Agriculture Abs Rtn Fund – Euro Dis . 5 ∑11.62 12.20 –0.07 –

Water & Agriculture Abs Rtn Fund – Sterling Acc 6 £10.31 10.93 –0.06 –

Water & Agriculture Abs Rtn Fund – Sterling Dis 5 £11.61 12.19 –0.07 –

Water & Agriculture Abs Rtn Fund – NOK Acc 6 NKr103.05 109.23 –0.59 –

Emerging Asia Class B USD Acc H. 5 $7.02 7.37 –0.19 –

Emerging Asia Class B USD Dbn H 5 $7.01 7.36 –0.18 –

Emerging Asia Class B EUR Acc H . 5 ∑7.53 7.91 –0.22 –

Emerging Asia Class B EUR Dbn H. 5 ∑7.49 7.87 –0.21 –

Emerging Asia Class B GBP Dbn H 5 £9.38 9.85 –0.28 –

Emerging Asia A USD Acc H 5 $8.33 8.75 –0.22 –

Emerging Asia A EUR Acc H 5 ∑9.01 9.46 –0.25 –

Emerging Asia A GBP Dbn H .. 5 £10.33 10.84 –0.32 –

Global Emerging Markets USD .. 5 $11.69 12.27 –0.30 –

Global Emerging Markets USD Dist 5 $37.32 39.18 –0.96 –

Global Emerging Mkts Euro Acc 5 ∑17.61 18.49 –0.49 –

Global Emerging Markets Euro Dist 5 ∑29.61 31.09 –0.82 –

Global Emerging Markets Stlg Dist 5 £37.73 39.62 –1.14 –

Global High Yield cls A Euro Acc Share. ∑9.16 ..... –

Global High Yield cls A Euro Dist Share ∑9.15 ..... –

Global High Yield cls A NOK Dist Share. NKr91.85 ..... –

Global High Yield cls A GBP Acc Share . £9.13 ..... –

Global High Yield cls A GBP Dist Share. £9.13 ..... –

Global High Yield cls A USD Acc Share . $9.14 ..... –

Global High Yield cls A USD Dist Share. $9.15 ..... –

Global High Yield cls B GBP Dist Share. £9.14 ..... –

Global High Yield cls B Euro Acc Share. ∑9.09 ..... –

Global Emerging Mkt Absolute Rtn Cls A USD Acc $8.98 ..... –

Global Emerging Mkt Absolute Rtn Cls A GBP Dist £8.98 ..... –

Global Emerging Mkt Absolute Rtn Cls A GBP Acc £8.98 ..... –

Global Emerging Mkt Absolute Rtn Cls A Euro Acc ∑8.99 ..... –

Global Emerging Mkt Absolute Rtn Cls A NOK Acc NKr90.00 ..... –

Global Emerging Mkt Absolute Rtn Cls B Euro Acc ∑9.01 ..... –

Global Emerging Mkt Absolute Rtn Cls B GBP Acc £9.00 ..... –

Global Emerging Mkt Absolute Rtn Cls B GBP Dist £9.00 ..... –

Global Emerging Mkt Absolute Rtn Cls B USD Acc $9.00 ..... –

Global Emerging Mkt Absolute Rtn Cls B CHF Acc SFr9.00 ..... –

Thames River CapitalOther International Funds

Hillside Apex Cls A Jul 29 . $2422.97 ..... –

Hillside Apex Cls B Jul 29 . ∑1259.83 ..... –

Hillside Apex Cls C Jul 29 . £1149.82 ..... –

Hillside Apex Cls D Jul 29. £714.14 ..... –

Warrior Cls A (Final) Jul 31 . $2568.05 ..... –

Warrior Cls B (Final) Jul 31 . ∑1864.58 ..... –

Warrior Cls C (Final) Jul 31 . £2059.04 ..... –

Warrior Cls F (Final) Jul 31.. $1069.07 ..... –

Warrior Cls G (Final) Jun 30 ∑1060.37 ..... –

Warrior Cls H (Final) Jul 31 . £1063.76 ..... –

Warrior Cls I (Final) Jul 31 NKr10752.11 ..... –

Warrior II Class A (Final) Jul 31 . $1278.84 ..... –

Warrior II Class B (Final) Jul 31 . ∑1258.92 ..... –

Warrior II Class C (Final) Jul 31 . £1284.81 ..... –

Warrior II Class D (Final) Jul 31. NKr109805.58 ..... –

Warrior II Class F (Final) Jul 31 . $1004.60 ..... –

Warrior II Class G (Final) Jul 31. ∑996.41 ..... –

Warrior II Class H (Final) Jul 31. £998.07 ..... –

Warrior II Class I (Final) Jul 31 .. NKr102705.94 ..... –

Sentinel Cls A (Final) Jul 31 $1816.01 ..... –

Sentinel Cls B (Final) Jul 31 ∑1150.51 ..... –

Sentinel Cls C (Final) Jul 31 £1468.55 ..... –

Longstone Cls A (Est) Aug 31. ∑1255.85 ..... –

Longstone Cls B (Est) Aug 31. $1228.41 ..... –

Longstone Cls C (Est) Aug 31. £1262.65 ..... –

Property Growth & Inc Cls A GBP Inc £10.29 ..... –

Property Growth & Inc Cls A GBP Acc £12.96 ..... –

Property Growth & Inc Cls B EUR Inc ∑9.82 ..... –

Property Growth & Inc Cls B EUR Acc ∑12.54 ..... –

Property Growth & Inc Cls C NOK Inc NKr69.94 ..... –

Property Growth & Inc Cls D Aus Acc A$19.06 ..... –

Property Growth & Inc Cls D Aus Inc. A$15.44 ..... –

Africa Focus Class A USD (Final) Aug 31 $1007.18 ..... –

Isis Cls A Jun 30 ............ $9371.57 ..... –

Isis Cls B Jun 30 ............ ∑3218.33 ..... –

Isis Cls C Jun 30 ............ £1101.21 ..... –

Isis Cls D Jun 30 ............ NKr13501.21 ..... –

Tilney Asset Management Intl Ltd (GSY)Other International Funds

The Glanmore Property Fund

NAV Aug 31.................... £13.272O ..... –

Purchase price (+5%) .... £13.935 ..... –

B Share NAV................... £13.330 ..... –

The Glanmore Property Accumulation Fund Limited

NAV Sep 1...................... £2.227 ..... –

Purchase Price (5%)....... £2.338 ..... –

B Share NAV................... £5.785 ..... –

The Glanmore Property Dollar Fund

NAV Sep 16.................... $3.348 ..... –

Purchase Price (+5%) .... $3.515 ..... –

B Share NAV................... $5.561 ..... –


Tilney Asset Management Intl Ltd - Contd.The Glanmore Property Euro Fund Limited

NAV Sep 16.................... ∑3.041 ..... –

Purchase Price (5%)....... ∑3.193 ..... –

B Share NAV................... ∑5.710 ..... –

TMI Liquidity Fund PLCOther International Funds

Euro Liquidity Sub–Fund ∑1.00 ..... 0.58

Sterling Liquidity Sub–Fund £1.00 ..... 0.94

Dollar Liquidity Sub–Fund. $1.00 ..... 0.16

Toscafund (CYM)Regulated

Tosca Aug 31 ................. $183.81 ..... –

Tosca Mid Cap GBP (Final) Aug 31 £125.33 ..... –

Tosca Opportunity B USD Aug 31 . $218.596979 ..... –

Tosca Emerging Markets (Final) Aug 31 £85.48 ..... –

MP Traded Policies Fund (CYM)Regulated

Traded Policies Fund EUR Instl NAV . ∑163.1880 ..... –

Traded Policies Fund GBP Instl NAV . £169.8556 ..... –

Traded Policies Fund USD Instl NAV . $185.1322 ..... –

Traded Policies Fund JPY Instl.. Y11888.5300 ..... –

Traded Policies Fund EUR Growth Acc NAV. ∑133.9143 ..... –

Traded Policies Fund GBP Growth Acc NAV. £148.5341 ..... –

Traded Policies Fund USD Growth Acc NAV $133.0930 ..... –

Traded Policies Fund JPY Growth Acc NAV . Y11326.1512 ..... –

Traded Policies Fund SEK Growth. SKr117.3722 ..... –

Traded Policies Fund GBP Inc £117.3605 ..... –

Traded Policies Fund USD Recovery . $118.1255 ..... –

Traded Policies Fund GBP Recovery . £120.2336 ..... –

Traded Policies Fund EUR Recovery . ∑119.9273 ..... –

Traded Policies Fund SEK Recovery . SKr117.8351 ..... –

TreeTop Asset Management S.A. (LUX)Regulated

TreeTop Convertible Sicav

International A................ ∑181.94 –2.64 –

International B................ $234.53 –3.68 –

International C................ £83.64 –1.21 –

Pacific A......................... ∑239.17 –2.12 –

Pacific B......................... $299.64 –3.23 –

TreeTop Global Sicav

Global Opp.A .................. ∑88.76 –1.34 –

Global Opp.B .................. $93.83 –1.28 –

Global Opp.C .................. £119.27 –2.27 –

Sequoia Equity A ............ ∑77.35 –1.73 –

Sequoia Equity B ............ $81.64 –1.63 –

Sequoia Equity C ............ £96.17 –2.54 –

Sequoia Pacific Equity A . ∑60.82 –1.62 –

Sequoia Pacific Equity B. $64.64 –1.61 –

Sequoia Pacific Equity C. £82.38 –2.59 –

Global Spec. Sit. A.......... ∑63.36 –0.42 –

Global Spec. Sit. B.......... $62.12 –0.24 –

Tweedy, Browne Value Funds (LUX)Regulated

Tweedy Browne US Value Sep 15. $152.67 ..... –

International Value (EUR) Sep 15.. ∑54.99 ..... –

International Value (SFR) Sep 15.. SFr26.59 ..... –

Global High Dividend Sep 15 . ∑8.69 ..... –

UBS AG (LUX)291, Route d'Arion P 91, L–2010 Luxembourg

www.ubs.com/funds

FSA Recognised

UBS(Lux)SF–Yield(EUR)B . ∑2594.18 ..... –

UBS(Lux)SF–Balanced(EUR)B ∑1819.65 ..... –

UBS(Lux)SF–Growth(EUR)B ∑2075.50 ..... –

UBS(Lux)EF–European Opport.P–acc .. ∑386.19 ..... –

UBS (Lux)EF–Greater China P–acc .. $155.61 ..... –

UBS (Lux)KSS–Glob All EUR P–acc.. ∑9.68 ..... –

UBS (Lux)S Xtra Sic–Yd EUR B F . ∑10.99 ..... –

UBS (Lux)S Xtra–Sic Ba EUR B F . ∑10.27 ..... –

UBS (Lux)S Xtra Sic–Gr EUR B F.. ∑9.60 ..... –

UBS (Lux)KSS–Europ Core Eq P–acc F . ∑10.51 ..... –

UBS (Lux)KSS–US Eq USD P–acc F . $12.24 ..... –

UBS (Lux)Eq Sic–USA Growth P–acc $14.35 ..... –

UBS(Lux)EF–Em.Mkts.(USD) P–acc F . 2 $22.86 ..... –

UBS(Lux)Med.Term BF–EUR F 1 ∑187.71 ..... –

UBS(Lux)BF–EUR High Yield F.. ∑115.94 ..... –

UBS(Lux)BS–Short Dur.HY EURhed F .. ∑98.22 ..... –

UBS(Lux)BS–ST EUR Corporates F .. ∑112.95 ..... –

UBS(Lux)Em.Ec.F–Global ST EUR F . ∑109.67 ..... –

UBS(Lux)ES–Europ.High Div. EUR F . ∑84.22 ..... –

Pls contact your adviser for funds in other currencies or for add. capabilities

For UBS Exchange Traded Funds please see ETF Section

UOB Global Strategies Funds Plc (IRL)Regulated

UOB Asian Equity............ $174.14 ..... –

UOB Greater China ......... $187.11 ..... –

UOB Paradigm Fund Class A (Eur) ∑121.75 ..... –

UOB Paradigm Fund Class B (USD) .. $150.23 ..... –

UOB Paradigm Fund Class C.. $97.01 ..... –

UOB Paradigm Fund Class D.. $94.63 ..... –

UOB US Equity Fund ....... $126.55 ..... –

UOB Global Opportunities Fund. $98 ..... –

UOB Strategic Allocation Fund USD.. $100.09 ..... –

Unicapital Investments (LUX)Regulated

Investments II................. ∑88.39 ..... –

Investments III................ ∑240.40 ..... –

Investments IV – European Private Eq. . ∑578.31 ..... –

Investments IV – Global Private Eq... ∑786.94 ..... –

Valartis Asset Management S.A. (LUX)Regulated

MC Russian Market Fd A $89.67 ..... –

MC Russian Market Fd B $17.63 ..... –

VAM Funds (Lux) SICAV (LUX)VAM Marketing Ltd, info@vam–funds.com +230 465 6860

Regulated

Asia Fixed Income – Accumulation GBP £106.16 ..... –

Asia Fixed Income – Accumulation USD $104.79 ..... –

Asia Fixed Income – Accumulation Euro ∑106.36 ..... –

Asia Fixed Income – Distribution GBP .. £96.04 ..... –

Asia Fixed Income – Distribution USD .. $97.41 ..... –

Asia Fixed Income – Distribution Euro .. ∑96.17 ..... –

Commodities Equity $ .... $77.01 ..... –

Commodities Equity £ .... £66.88 ..... –

Emerging Markets Growth B.. $86.57 ..... –

Global Government Bond Fund – USD .. $105.06 ..... –

Global Government Bond Fund – GBP .. £104.85 ..... –

Global Government Bond Fund – Euro .. ∑105.94 ..... –

International Real Estate Equity Fund $107.06 ..... –

US Large Cap Growth B.. $22.07 ..... –

US Mid Cap B USD ......... $125.86 ..... –

US Small Cap Growth B .. $17.03 ..... –

US Micro Cap Growth B .. $24.09 ..... –

World Growth Fund ........ $75.87 ..... –

VAM Managed Funds (Lux) (LUX)Regulated

VAM Driehaus Dollar Fund $74.63 ..... –

VAM Driehaus Euro Fund ∑132.02 ..... –

VAM Driehaus Sterling Fund £131.61 ..... –

VAM Managed Funds (Lux) – Multi–Asset Strategy Sterling £8.13 ..... –

VAM Managed Funds (Lux) – Multi–Asset Strategy US Dollar $8.87 ..... –

VAM Managed Funds (Lux) – Multi–Asset Strategy Euro ∑7.04 ..... –

Vanguard Investment Series Plc (IRL)50 Cannon Street London EC4N 6JJ England

http://funds.ft.com/funds/Vanguard

FSA Recognised

20+Year Eur.Treas.Ind. Fd Eur.Sh. Sep 23 F .. ∑128.4157 +0.3951 –

30–40 Year Duration Euro Index Fund Sep 23 F ∑223.4211 +0.0591 –

Em Mkt Stock Index GBP Sep 23 F 0 E £129.1745 –3.6692 1.26

Em Mkt Stock Index Inv EUR Sep 23 F 0 E ∑97.6565 –2.5398 –

Em Mkt Stock Index Inv USD Sep 23 F . E $132.0164 –2.8972 –

Em Mkt Stock Index GBP Sep 23 F 0 E £131.3083 –3.7298 1.24

Euro Govt Bd Idx Instl Sep 23 H f ∑169.6877 +0.0244 0.69

Euro Govt Bd Idx Inv Sep 23 H . f ∑160.7983 +0.0227 0.6443

Euro Govt Bd Idx Inv USD Sep 23 F 1 C $217.4265 +0.8912 0.7929

Euro Inv Grade Bd Idx Instl EUR Sep 23 F d ∑164.8039 –0.273 0.5172

Euro Inv Grade Bd Idx Inv EUR Sep 23 F . d ∑154.8144 –0.2568 0.4788

European Stock Idx Instl EUR Sep 23 d ∑9.6123 +0.0617 –

European Stock Idx Instl USD Sep 23 d $12.9888 +0.1343 –

European Stock Idx Inv EUR Sep 23 . d ∑9.4775 +0.0609 –

European Stock Idx Inv USD Sep 23 . d $12.8153 +0.1327 –


Vanguard Investment Series Plc - Contd.Eurozone Inf–Lkd Bd Idx Fd EUR Sep 23 F .. f ∑103.9598 –0.4828 –

Eurozone Inf–Lkd Bd Idx Instl EUR Sep 23 F . f E ∑89.8567 –0.4171 0.1915

Eurozone Stock Idx Fd Sep 23 F.. ∑76.5053 +0.6457 –

Eurozone Stock Idx Instl Sep 23 H d ∑87.8679 +0.7419 –

Gbl Bond Idx CHF Sep 23 F d SFr97.3708 –0.2406 –

Gbl Bond Idx CHF Sep 23 F SFr114.1930 –0.2821 –

Gbl Bond Idx GBP Sep 23 F. 0 £119.2571 –0.2736 0.42

Gbl Bond Idx GBP Sep 23 F. 0 £120.7654 –0.2767 0.41

Gbl Bond Idx USD Hedged Sep 23 F .. 0 $118.3326 –0.2521 –

Gbl Enhanced Equity Fd USD Sep 23 F. $77.6308 +0.3799 –

Global Sm.Cap Idx Fd GBP F.. 0 £106.1958 –0.2614 0.98

Global Sm.Cap Idx Fd GBP F.. 0 £104.2549 –0.2567 0.98

Global Sm.Cap Idx Fd USD F.. 0 $108.9234 +0.4179 –

Gbl Stock Idx Euro Hgd Instl EUR Sep 23 F ... 0 ∑8.7039 +0.0348 –

Gbl Stock Idx Instl EUR Sep 23. ∑9.3837 +0.0113 –

Gbl Stock Idx Instl USD Sep 23 $12.7441 +0.0658 –

Gbl Stock Idx Inv EUR Sep 23 ∑9.3015 +0.0112 –

Gbl Stock Idx Inv USD Sep 23 .. $12.5756 +0.0649 –

Japan Govt Bd Idx Fd JPY Sep 23 F. Y14394.7845 +0.6019 –

Japan Govt Bd Idx Instl JPY Sep 23 F. 0 Y14460.0606 +0.6447 –

Japan Govt Bd Idx Inv USD Sep 23 0 $188.5767 +0.1314 –

Japan Stock Idx Fd GBP Sep 23 F . 0 £110.5997 –0.6276 1.77

Japan Stock Idx Fd JPY Sep 23 F Y9947.9578 –0.1532 –

Japan Stock Idx Fd GBP Sep 23 F . 0 £112.3816 –0.6377 1.75

Japan Stock Idx Instl EUR Sep 23 d ∑96.9308 –0.3226 –

Japan Stock Idx Instl USD Sep 23 d $131.0472 +0.0843 –

Japan Stock Idx Inv EUR Sep 23 F. 0 ∑97.0773 –0.3234 –

Japan Stock Idx Inv USD Sep 23 . d $130.0075 +0.0833 –

Pacific Ex–Jap Stock Idx Fd GBP Sep 23 F ... 0 £136.4811 –2.2068 3.44

Pacific Ex–Jap Stock Idx Fd GBP Sep 23 F ... 0 £143.5127 –2.3205 3.33

Pacific ex–Jap Stock Idx Instl USD Sep 23 F . d $149.7648 –1.4657 –

SRI European Stock Instl EUR Sep 23 F .. 0 ∑91.2458 +0.5734 –

SRI Global Stock Instl EUR F 0 ∑82.5103 –0.0085 –

Switzerland Stock Idx Instl CHF Sep 23 . d SFr162.5832 +0.3246 –

U.K. Gov Bnd Idx Fd GBP Sep 23 F 0 £111.9261 –0.0211 3.89

U.K. Gov Bnd Idx Fd GBP Sep 23 F 0 £121.1410 –0.0229 3.81

U.S. Discoveries Fd GBP Sep 23 F . £93.6951 +0.3054 –

U.S. Fundamental Value Fd GBP Sep 23 F £50.4913 +0.0887 –

UK Inv. Grade Bd Idx Fd GBP Sep 23 F . £62.5627 –0.1539 4.92

UK Inv. Grade Bd Idx Inv GBP Sep 23 F... 0 £48.4045 –0.1191 5.05

US 500 Stock Idx Instl EUR Sep 23 F . 0 ∑8.6246 +0.0187 –

US 500 Stock Idx Instl Hedged EUR Sep 23 F .. ∑8.4914 +0.0584 –

US 500 Stock Idx Instl USD Sep 23 . $11.6556 +0.0714 –

US 500 Stock Idx Inv EUR Sep 23 F .. 0 ∑8.5341 +0.0185 –

US 500 Stock Idx Inv USD Sep 23 $11.5346 +0.0706 –

US Discoveries Inv USD Sep 23. 0 $145.2490 +1.3836 –

US Fundamental Value Inv USD Sep 23 F. 0 E $82.6239 +0.6636 –

US Futures Inv USD Sep 23 F. 0 $130.7497 +0.8651 0.5112

US Govt Bd Idx Instl USD Sep 23 F 0 $169.6261 –0.8107 0.3572

US Govt Bd Idx Inv USD Sep 23 F.. 0 $167.7547 –0.8023 0.348

US Inv Grade Credit Idx Instl USD Sep 23 F... 0 $143.9639 –1.1049 0.4555

US Inv Grade Credit Idx Inv EUR Sep 23 F 8 ∑147.2135 –1.7198 –

US Mortage Backed Sec Bd Idx Instl USD Sep 23 F 0 $146.3682 –0.4565 0.6383

US Opp Instl USD Sep 23 F . 0 $239.8230 +3.2375 –

US Opp Inv EUR Sep 23 F ∑211.6374 +2.0265 –

US Opp Inv GBP Sep 23 F 0 £185.1962 +1.3437 –

US Opp Inv USD Sep 23 F 0 $286.1194 +3.8618 –

US Ultra Short Term Bond Instl Sep 23. $10.0052 –0.0006 0.1105992719

US Ultra Short Term Bond Inv Sep 23 .. $10.0051 –0.0005 0.0306049264

Veritas Asset Management (UK) Limited (IRL)www.veritas–asset.com

FSA Recognised

Veritas Funds Plc

HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland

+353 1 635 6799

Institutional

Veritas Asian Fund A USD H 3 E $210.5244 ..... –

Veritas Asian Fund A GBP H 0 E £254.1802 ..... –

Veritas Asian Fund A EUR H 3 E ∑181.2127 ..... –

Veritas China Fund A USD $107.3429 (z) –

Veritas China Fund A GBP £107.7865 (z) –

Veritas China Fund A EUR ∑106.7554 (z) –

Veritas Global Focus Fund A GBP .. 3 E £18.2500 ..... –

Veritas Global Focus Fund A EUR .. 0 ∑12.4700 ..... –

Veritas Global Focus Fund A USD.. 3 E $16.6500 ..... –

Veritas Global Focus Fund B GBP.. 0 £18.2600 ..... –

Veritas Global Focus Fund B EUR .. 0 ∑12.5800 ..... –

Veritas Global Focus Fund B USD.. 0 $16.6700 ..... –

Veritas Global Focus Fund Accumulation GBP.. £18.2200 ..... –

Veritas Global Focus Fund Accumulation EUR.. ∑12.5000 ..... –

Veritas Global Focus Fund Accumulation USD . $16.7000 ..... –

Veritas Global Equity Income Fund A GBP 0 £131.8800 ..... –

Veritas Global Equity Income Fund A EUR 0 ∑153.0400 ..... –

Veritas Global Equity Income Fund A USD . $105.2700 ..... –

Veritas Global Real Return Fund A USD .. 0 $16.2122 (z) –

Veritas Global Real Return Fund A GBP .. 0 £8.8420 (z) –

Veritas Global Real Return Fund A EUR... 0 ∑10.4640 (z) –

Retail

Veritas Asian Fund Retail USD . $147.9693 ..... –

Veritas Asian Fund Retail GBP . £185.3114 ..... –

Veritas Asian Fund Retail EUR.. ∑132.0438 ..... –

Veritas China Fund Retail USD . $106.6180 (z) –

Veritas China Fund Retail GBP . £105.3719 (z) –

Veritas China Fund Retail EUR . ∑106.0862 (z) –

Veritas Global Focus Fund Retail USD.. $11.9700 ..... –

Veritas Global Focus Fund Retail GBP .. £13.8700 ..... –

Veritas Global Focus Fund Retail EUR. 0 ∑9.0500 ..... –

Veritas Global Equity Income Fund Retail GBP . £123.9500 ..... –

Veritas Global Equity Income Fund Retail EUR 0 ∑143.4500 ..... –

Veritas Global Equity Income Fund Retail USD . $106.9200 ..... –

Veritas Global Real Return Fund Retail USD .. 0 $15.7234 (z) –

Veritas Global Real Return Fund Retail GBP .. 0 £8.7671 (z) –

Veritas Global Real Return Fund Retail EUR .. 0 ∑10.2822 (z) –

Veritas Asset Management (UK) LimitedOther International Funds

Real Return Asian Fund USD.. $251.66 ..... –

Real Return Asian Fund GBP.. £257.36 ..... –

Real Return Asian Fund EUR.. ∑245.08 ..... –

Victory Capital LtdOther International Funds

Victory Capital Ltd A GBP (Est) Sep 16 .. £163.7 ..... –

WP Stewart Global Growth Fund (LUX)Regulated

Global Growth ................ $16.42 ..... –

Waverton Investment Funds Plc (1600)F (IRL)[email protected]

FSA Recognised

Asia Pacific B USD....... 5 E $15.588 –0.141779 –

European Fund B Eur H . 5 E ∑7.324 +0.185198 –

Global Equity Fund B GBP H 5 E £4.619 –0.013857 –

UK Fund B GBP H ........ 5 E £8.993 +0.370214 –

Global Bond Fund USD 5 E $10.000 ..... –

JOHIM Equity Fund GBP. 5 E £9.680 ..... –

JOHIM Sterling Bond Fund GBP. 5 E £9.709 ..... –

UK Abs. Fund GBP ....... 5 E £10.000 ..... –

WA Fixed Income Fund Plc (IRL)Regulated

European Multi–Sector ... ∑102.56 –0.45 –

Williams de Broë Assetmaster Fund Plc (IRL)Comore Plaza, Colmore Circus, Birmingham, B4 6AT 0044 121 2320726

FSA Recognised

Assetmaster Growth Fund 6 £1.492 –2.93 –

Assetmaster Cautious Fund 6 £1.278 –0.93 –

Assetmaster Balanced Fund .. 6 £1.211 –2.18 –

Assetmaster Intl Growth Fund 6 £1.534 –3.46 –

Multi Strategy Fund H.... £1.728 ..... –

Chameleon Capital H..... £1.048 ..... –

Winton Capital ManagementOther International Funds

Winton Futures USD Cls B (Final) . $849.71 ..... –

Winton Futures EUR Cls C (Final).. ∑238.9 ..... –

Winton Futures GBP Cls D (Final) . £258.27 ..... –

Winton Evolution USD Cls F (Est) .. $1381.2083 ..... –

Winton Evolution EUR Cls H (Est) .. ∑1088.1176 ..... –

Winton Evolution GBP Cls G (Est).. £1092.4547 ..... –

Winton Futures JPY Cls E (Final) Y16772.97 ..... –

World Trust Fund (LUX)Regulated

Shares NAV .................... $2.91 ..... –

Xanthos Asset Management LtdOther International Funds

Xanthos Capital Euro ...... ∑1040.68 (z) –

Xanthos Capital USD....... $1038.57 (z) –

Xanthos Equities USD ..... $1173.34 (z) –

Xanthos Investment Partners USD $3115.85 (z) –


Yuki International Limited (IRL)Tel +44–207–269–0203 www.yukifunds.com

Regulated

Yuki Mizuho Umbrella Fund

Yuki Mizuho General Japan III Y3378.0 –68.0 –

Yuki Mizuho Japan Dynamic Growth Y3276.0 –100.0 –

Yuki Mizuho Japan General. Y6833.0 –192.0 –

Yuki Mizuho Japan Excellent 100. Y5390.0 –110.0 –

Yuki Mizuho Japan Growth . Y4869.0 –167.0 –

Yuki Mizuho Japan Income . Y6269.0 –167.0 –

Yuki Mizuho Japan Large Cap Y3924.0 –64.0 –

Yuki Mizuho Japan Low Price Y9165.0 –382.0 –

Yuki Mizuho Japan Pure Gwth .. Y5604.0 –209.0 –

Yuki Mizuho Japan Small Cap Y5602.0 –277.0 –

Yuki Mizuho Japan Value Select Y4320.0 –129.0 –

Yuki Mizuho Japan Young Companies .. Y2143.0 –73.0 –

YMR Umbrella Fund

YMR N Growth Sep 26.... Y7535.0 –253.0 –

Yuki Chugoku Umbrella Fund

Yuki Chugoku Japan General . Y5343.0 –123.0 –

Yuki Chugoku Japan Low Price. Y6197.0 –217.0 –

Yuki 77 Umbrella Fund

Yuki 77 General.............. Y4585.0 –130.0 –

Yuki Hokuyo Umbrella Fund

Yuki Hokuyo Japan General Y3597.0 –74.0 –

Yuki Hokuyo Japan Income. Y4237.0 –111.0 –

Yuki Hokuyo Japan Small Cap Fund . Y3988.0 –175.0 –

Yuki Asia Umbrella Fund

Yuki Japan Rebounding Growth Fund .. Y8267.0 –142.0 –

Zebedee Capital Limited (CYM)Regulated

Zebedee Focus Fund Limited Class A EURO Shares Aug 31 ∑164.53 ..... –

Zebedee Focus Fund Limited Class B USD Shares Aug 31 $189.25 ..... –

Zebedee Focus Fund Limited Class A USD Aug 31 $164.73 ..... –

Exchange TradedFunds


52week Vol Notes Price Chng High Low Yld ’000s

UBSEuroSTX50A € † £17.77 +0.32 £27.19 £16.87 5.1 6EuroSTX50I € † £17338.19 -360.85 £27,209.97 £17,014.03 5.3 0FTSE 100 SFr † £48.49 -0.37 £59.84 £47.07 3.9 -MSCI Can A C$ † £18.03 -0.10 £23.46 £18.02 1.9 30MSCI Can I C$ † £18022.72 -731.23 £23,267.71 £18,022.72 2.0 0MSCI EMU € £58.15 +0.60 £85.92 £55.51 3.9 15MSCI EMU I € £57187.42 -605.93 £85,232.84 £56,842.65 4.0 -MSCI EMU VA € † £22.55 -0.24 £34.38 £20.79 5.1 -MSCI Eurp A € † £32.22 -0.48 £44.34 £32.14 3.7 0MSCI Eurp I € † £34087.17 -361.17 £44,080.76 £34,630.28 3.6 -MSCI Japan SFr † £18.93 -0.21 £22.59 £17.08 1.6 1MSCI Japan I ¥ ‡ £18835.19 -162.83 £22,508.83 £17,971.51 1.8 -MSCI PexJp $ † £22.42 -0.42 £30.01 £21.41 5.2 33MSCI USA SFr † £70.51 +0.22 £82.52 £63.74 1.2 6MSCI USA I $ † £69305.98 -489.33 £81,102.56 £65,381.35 1.3 -MCSI World SFr † £71.06 -0.11 £86.68 £66.97 2.1 1MSCI World I $ † £69664.09 -491.89 £84,945.80 £68,756.55 2.2 -

Net asset values and splits analytics supplied by Morningstar as a guide only (www.Morningstar.com).See guide to Financial Times Share Service.

Guide to DataThe fund prices quoted on these pages aresupplied by the operator of the relevant fund.Details of funds published on these pages,including prices, are for the purpose ofinformation only and should only be used as aguide. The Financial Times Limited makes norepresentation as to their accuracy orcompleteness and they should not be reliedupon when making an investment decision.

The sale of interests in the funds listed onthese pages may, in certain jurisdictions, berestricted by law and the funds will notnecessarily be available to persons in alljurisdictions in which the publication circulates.Persons in any doubt should take appropriateprofessional advice. Data collated by InteractiveData (Europe) Limited. Telephone + 44(0)207 417 1200. For other queries [email protected] +44 (0)207 8734211.

The fund prices published in this editionalong with additional information are alsoavailable on the Financial Times website,www.ft.com/funds. The funds published onthese pages are grouped together by fundmanagement company and shown inalphabetical sequence. Within each group fundsare displayed in the following order: AuthorisedInvestment Funds & OEICs (authorised in theUK by the Financial Services Authority),Property & Other UK Unit Trusts, FSARecognised funds, Regulated funds,International Insurance Funds, OtherInternational Funds.

Prices are in pence unless otherwiseindicated. The change, if shown, is the changeon the previously quoted figure (not all fundsupdate prices daily). Those designated $ withno prefix refer to US dollars. Yield percentagefigures (in Tuesday to Saturday papers) allowfor buying expenses. For FT fund ratings seeMonday’s FTfm, where available, orwww.ft.com. Prices of certain older insurancelinked plans might be subject to capital gainstax on sales.

Guide to pricing of Authorised InvestmentFunds (compiled with the assistance of theIMA. The Investment Management Association,65 Kingsway, London WC2B 6TD. Tel: +44(0)20 7831 0898.)

OEIC: OpenEnded Investment Company.Similar to a unit trust but using a companyrather than a trust structure.

Share Classes: Separate classes of shareare denoted by a letter or number after thename of the fund. Different share classes areissued to reflect a different currency, chargingstructure or type of holder.

Initial Charge: Charges made bymanager/operator to the buyer. Used to defraymarketing and administrative costs, includingcommission paid to intermediaries. For dualpriced unit trusts this charge is included in thebuying price of units. See also “Single Price”.

Buying price: Also called offer price. Theprice at which units in a unit trust are boughtby investors. Includes manager’s initial charge.

Selling price: Also called bid price. Theprice at which units in a unit trust are sold byinvestors.

Single price: Based on a midmarketvaluation of the underlying investments. Thebuying and selling price for shares of an OEICand units of a single priced unit trust are thesame. Manager’s/operator’s initial charges areshown separately.

Treatment of manager’s periodic capitalcharge: The letter C denotes that the trustdeducts all or part of the manager’s/operator’speriodic charge from capital, contact themanager/operator for full details of the effect ofthis course of action.

Exit Charges: The letter E denotes that anexit charge may be made when you sell units,contact the manager/operator for full details.

Time: Some funds give information aboutthe timing of price quotes. The time shownalongside the fund manager’s/operator’s nameis the valuation point for their unit trusts/OEICs,unless another time is indicated by the symbolalongside the individual unit trust/OEIC name.

The symbols are as follows: ✠ 0001 to1100 hours; ♦ 1101 to 1400 hours; ▲1401 to1700 hours; # 1701 to midnight. Daily dealingprices are set on the basis of the valuationpoint, a short period of time may elapse beforeprices become available.Historic pricing: Theletter H denotes that the managers/operatorswill normally deal on the price set at the mostrecent valuation. The prices shown are thelatest available before publication and may notbe the current dealing levels because of anintervening portfolio revaluation or a switch to aforward pricing basis. The managers/operatorsmust deal at a forward price on request, andmay move to forward pricing at any time.Forward pricing: The letter F denotes that thatmanagers/operators deal at the price to be setat the next valuation.

Investors can be given no definite price inadvance of the purchase or sale being carriedout. The prices appearing in the newspaper arethe most recent provided by themanagers/operators. Scheme particulars,prospectus, key features and reports: The mostrecent particulars and documents may beobtained free of charge from fundmanagers/operators. (Z) Previous day’s pricesshown. Susp = Suspended. Charges for thisadvertising service are based on the number oflines published and the classification of thefund. Please contact [email protected] or call+44 (0)20 7873 3132 for further information.

Visit www.ft.com/ir

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American and British Stocks 52 week VolStock Price Chng High Low Yld P/e ’000s

UK (Sep 26/Pence)3i 192.30 +5.1 345.20 181 1.9 9.8 4757AberAsM 170 +1.5 241.90 158.10 4.5 14.5 3504ABG 500 -69.5 648 383 1 13.5 1878Admiral 1.33k +62 1.75k 1.19k 5.6 16.3 1683Aegis 125.70 +4.4 175.17 102.43 14.6 37.7 5010Aggreko 1.7kxd +18 2.05k 1.38k 1.2 21.3 931Alliance 324.20xd +2.6 394.60 258.22 2.6 37 966AMEC 838 -3.5 1.26k 774.50 3.5 11.7 2630Amlin 287.50xd +5 430 275.40 8 - 1904AngloAmer ✠ 2.26k +11 3.47k 1.92k 2.1 6.6 9238Antofgst ✠ 950xd -21 1.6k 901.50 8.1 11.5 8222AquarsPl 177xd -14.4 576.79 175.60 2.9 4.4 2644ARM 564xd -10.5 652 335.70 0.6 - 11218AscBrFd 1.14k +48 1.2k 916.50 2.1 16.8 3522Ashmore 341.10 -9.9 429.90 299.50 4.3 12.2 7032AstraZen ✠ 2.78k +7.5 3.36k 2.45k 6.9 7 2645Autonomy 2.53k +11 2.55k 1.23k - 42.7 2102Aviva ✠ 295xd +17.7 480.78 266.80 8.6 19.1 40302Babcock 654 +7 736 507 3 24.6 1419BAE SYS 271.60 -2.2 372.90 241 6.6 7.9 20250BalfourB 252.60 +4.5 364.90 224 5.1 13.5 1997Barclays ✠ 156 +10 339.45 133.90 3.5 6.2 171485BG ✠ 1.14k -18.5 1.74k 1.02k 1.2 15.6 14977BHMcroEUR 19.24 -.06 20.25 10.78 - - 12BHMcroUSD 19.10 -.05 20.20 15.75 - - 18BHP Bltn 1.75kxd -14.5 2.65k 1.68k 4.1 6.5 22039BP ✠ 384.70 -.35 514.90 361.25 3.9 0 66691BrAmTob ✠ 2.71kxd +7 2.92k 2.26k 4.4 15.4 6454BritLand 477 +.2 902.50 463.70 4.6 15.3 5390BSkyB ✠ 683.50 +13 850.77 613.83 3.4 16.2 2830BT ✠ 171 +2.2 206.10 117.50 4.3 8.2 27469Bunzl 770 +1 848.50 651 3.1 14 2228Burberry 1.31k -32 1.61k 949.50 1.5 26.4 1652bwin.party 122.20xd -1.1 289.90 98.50 1.3 10.2 1106C&WComm 38.64 -.9 68.75 30.25 12.9 9.3 7164C&WWwide 29.50 -.25 79.20 28.37 15.3 4 3313CairnEng 281.10 +2 474 264.60 - - 8083Capita 702xd -11.5 803 633 2.9 16.5 3595CapShopCn 304.30 +7.9 427.50 289.60 4.3 18.4 1154Carillion 325.70xd -5.2 410.90 289.70 4.9 10.6 2499Carnival 2.06k +5 3.23k 1.68k 3 - 1805CatlinGrp 377.20 +21.2 423 324.20 6.4 3.6 1666Centrica ✠ 292.60 +5.6 351.90 278.90 5 13.2 26105CntmnEgyt 97.80 -2.1 202.80 87.45 - - 3835Cobham 181 +1.6 247.40 167 3.4 13.3 3553Compass 526.50 +2 616.50 498.20 3.6 13.8 5161Cookson 410.50xd -9.9 737.50 354.78 4.6 6.7 3680Croda 1.67kxd -9 2.12k 1.35k 3 15.1 734Daily Mail 347 +3.6 602.50 336.30 4.7 8.7 889Dana Ptr 1.8k - 1.8k 1.8k - 24.9 34Diageo ✠ 1.24kxd +21 1.32k 1.08k 3.3 16 4571Drax Group 497.90 +6.9 542 307.99 6.8 8 2800DrwntLdn 1.51k -26 1.91k 1.41k 1.6 17.9 415easyJet 353 +1 483 300.10 15 22.3 2048ENRC 550xd -4 1.13k 531 4.4 5 2842EssarEngy 245 -4.7 638 233 - 17.4 1392Experian 704.50 +9.5 841.50 652 2.6 21.2 3447Ferrexpo 283.30 -13.2 568.33 242.90 1.5 4.5 2509FirstGrp 320.30 +6.5 414.10 222 6.9 7.5 3868For & Col 272.90 - 330.70 134 2.5 44.3 302Fresnillo 1.52k -112 2.21k 1.2k 2.7 18.2 2197G4S 260.20xd +5.9 294.70 227.40 3.1 14.7 6864GKN 168.20 -4.5 249 149.89 3.3 8.6 19478GlaxoSmh ✠ 1.33kxd +20 1.4k 1.12k 5 25 17445Glencore ✠ 414.60xd +2.2 559.16 340.60 0.8 - 9886Hammersn 367xd +.5 496.30 358.30 3.6 - 3965Hargr Lans 438.40xd +5.8 644.95 387.17 4.3 22.4 591Hays 72.40 +.8 133.90 67.75 8 10.9 4118HikmaPhm 566.50xd +9 908 536.50 1.6 19.1 432Hiscox 366.60 +7.5 427.70 334.60 4.5 7.3 1487Hochschild 450 -14.4 688 393.50 1 14.7 337HomeRetail 116 -.9 236.60 99.75 12.7 5 2915Homesve 471.90 +11.2 535 405.40 2.2 19.7 434HSBC ✠ 499.90xd +1.9 739.50 484 5.4 9.1 53082IAG 147.10 +5 307.30 137.70 - - 12807ICAP 432 -4.8 575 370.60 4.6 12.7 4107IG Group 444.60xd +5.5 560 150.11 4.5 13.1 2213IMI 729.50xd +4 1.2k 702.50 3.8 10.6 2714ImpTob ✠ 2.13k +42 2.25k 1.67k 4.1 12 4718Inchcape 279.30 -4.2 436.60 266.10 3.7 8.7 1917Informa 325.90 -3.6 467.40 311.90 4.4 18.5 3053Inmarsat 487.90 +10.1 724.50 287.50 5.6 10 4056InterC Htls 1.06kxd +17 1.44k 939 3 1.8 2022Intertek 2k +35 2.16k 1.68k 1.5 23.5 746IntlPowr ✠ 315.60xd +10.2 352.79 262.80 3.3 - 12677Invensys 223.30 +2.2 397.70 214.10 1.8 9.3 3421Investec 357.50 -3.9 538.50 348.40 4.8 8.4 3064ITV 59.55 +1.8 95.85 30 0.7 7 28612JardineL 640xd +4 714.50 557 3.6 16.4 360JohnsoM 1.53k -29 2.13k 1.49k 3 15.1 1032Kazakhmys 782xd -32 1.7k 764.50 2.2 3.9 5895Kingfshr 241.60 +.8 290.80 204.10 3.2 9.6 7776Ladbrokes 121.50xd -1.6 156.70 115.50 6.3 10.9 4760LandSecs 633.50xd -1 894.66 621 3.6 13 7782Leg&Gen 97.45xd +5.85 125.60 87.85 5.2 7.3 45703LlydsBkg ✠ 35.23 +1.09 91 26.49 - - 359176Logica 74.15xd +.25 149.40 72.05 5.9 8.1 3781Lonmin 1.07k -10 2.01k 1.04k 1 17.1 1220LSE 827 -10 1.09k 666 3.2 13.1 765Man 227.60 -3.8 315.50 165.90 6.9 15.4 16220Marks&Sp 327 -.9 431.40 296.20 5.2 8.3 8553Meggitt 318.80xd +2 400.90 124 3 13.2 3658Melrose 273.10xd -2 371.30 256.17 4.9 11.4 833MichaelPge 361.50xd +3.9 570.50 319.50 2.6 19.5 2011Misys 214.90 -6 430 214.50 - 23.7 1561Mitchells&B 252.50 +.9 366.30 215.10 - 5.5 812Mlnm&Cth 401xd -1.7 618 389 2.5 10.6 316Mondi 482.70 +5.7 668.50 458.70 4.9 10.3 2245Morrison 287.10 +2.9 309.90 178.60 4 11.2 11376Natl Grid ✠ 623.50 -3.5 650.60 521.50 5.8 9.2 16996NatlExp 232.10 +5.2 272.50 213.80 3.9 11.4 656Next 2.55k -17 2.66k 1.84k 3.2 10.5 1370NorthumWtr 463.30 +.4 470.44 292.90 3.1 13.5 1372

Old Mutl 106.60 +2.6 146.90 99.65 4.1 9.2 25825Pearson 1.14k +4 1.22k 921 3.5 16.8 5856Pennon 683.50xd +20.5 749.50 384.57 3.6 14.3 1788Persimn 456.20 -4.1 505.50 336 1.9 12.4 1726Petrofac 1.23kxd -19 1.7k 1.05k 2.5 15.1 2281Petropvlsk 660 -30.5 1.24k 633 1.8 11.3 2514Phoenix 492.30xd -5.3 704.50 430 8.5 1.8 38PremOil 318.40 -1.4 535.50 248.75 - 7 3020Prudential ✠ 561 +14.5 781 389.50 4.5 0.8 19218PZ Cusns 339.20xd +7.4 410 317.10 1.9 20.1 3057RBS ✠ 23.57 +.74 50 19.60 - - 203884ReckittB ✠ 3.26kxd +60 3.68k 2.63k 3.7 14.6 2402Reed Els ✠ 497.30 +10.7 593.50 445.90 4.2 19.5 7588Rentokil 72.95 +.1 106.90 70.85 - 15.7 8026Resolution 249.20xd +9.4 319.40 208.90 7.6 3.1 16158REXAM 306.90xd +6 401.90 295.10 4.1 9.7 6916RioTinto ✠ 2.96k -20.5 6.95k 2.86k 2.4 5.7 15362RIT Cap 1.19k -5 1.34k 1.11k 0.3 - 282RndgldRs 6.17k -180 7.32k 4.32k 0.2 - 1165RollsRyc ✠ 599.50 +3.5 666.61 314.06 2.5 6.6 7156Rotork 1.57k -34 1.91k 1.43k 2.2 19 355RSA Ins 109.90xd +2.9 157.86 105.50 8.2 9.9 31314RylDShlA ✠ 1.96k -29 2.38k 1.76k 5.3 8.7 7024RylDShlB 2k -24 2.35k 1.77k 5.2 8.9 9302SABMiller ✠ 2.09k +9.5 2.37k 1.86k 2.8 22.8 6517Sage 257.90 +.1 305 225.10 3.1 14.6 4688Sainsbry 270.90 +4.6 397 258 5.6 9.5 11928SchrdrsNV 1kxd +30 1.57k 941.50 3.9 8.1 55Schroders 1.23kxd +34 1.94k 1.16k 3.2 9.9 1351Scot&Sth ✠ 1.28k -3 1.73k 1.1k 5.9 5.7 1883ScottMort 636 +4.5 783 613 1.9 47.7 200SEGRO 217xd +.5 334.20 210.90 6.2 10.3 3166Serco 499.80xd +5.2 647.50 465.50 1.5 14.7 776SevernTr 1.49k +30 1.53k 1.29k 4.4 13.1 1750Shire 1.97kxd +17 2.15k 1.39k 0.4 27.6 2862SmithNph 581 +3.5 748.50 501 2 12.8 2390Smiths 922 +10 1.45k 884.50 3.8 11.3 2129Soco Int 334.10 +14.1 466.90 252.14 - - 860Spirax-S 1.81k +22 2.09k 1.59k 2.5 14.9 182St Jms Pl 304.30 +3.1 382.40 234.90 2.4 19.7 696Stagech 241.50xd +.8 312.99 145.20 2.9 10.3 1660StandardLf 199.90xd +5.2 245.40 162.70 6.6 10.8 8937StandCh ✠ 1.28kxd +3.5 1.98k 1.24k 4 9.9 10291TalkTalk 127 +2 169.60 119.20 4.4 28.5 716Tate&Lyl 592.50 -5 683 449.50 4 14.4 3194TemptnEm 511 -5.5 689.50 502.22 0.8 - 584Tesco ✠ 371.40 +6.2 490.50 280.40 3.9 13.1 40560ThmsCook 35.52xd -.57 206.80 32.45 30.3 8.4 6077TravisPkn 715.50 +.5 1.14k 675 2.3 9.8 2696TUI Travel 151.30xd +2.3 275 134.10 7.3 14.6 4260Tullow 1.29k -6 1.51k 879.50 0.6 40.7 5465UBM 444.20xd - 729 406.70 5.7 11.3 1909UltraElct 1.51k +13 1.9k 1.27k 2.4 14.2 144Unilever 1.98k - 3.04k 1.76k 3.7 18.7 5746UtdUtils 601.50 +2.5 634.50 368 5 11.4 5067Vedanta 1.07k -43 2.6k 1.03k 3.5 5.1 3014Vodafone ✠ 162.50 +.9 250 153.95 7.9 7.6 186644Weir 1.6k +55 2.25k 946 1.8 15.2 4263Whitbrd 1.6k +5 1.9k 1.34k 2.8 12.5 1043Willim H 225.60 +3 239.20 153.70 3.9 10 4133Wolseley 1.44k +12 2.29k 1.39k 1 40.5 3957Wood (J) 519 -12 739 425.72 1.9 35.9 3026WPP 609 +7.5 864 561.50 3.2 11.9 11026Xstrata ✠ 820xd -6 1.58k 781.90 2.6 6.4 19328

NYSE (Sep 26 / 3:30 pm/US$)3M ✠ 74.68 +.69 98.19 72 2.9 12.7 1175AbbottLb ✠ 50.66 -.3 54.23 45.07 3.7 15.4 1336Accenture ✠ 51.43 +1.02 63.66 41.50 1.7 16.3 1140ACE ✠ 60.50 +.8 69.83 57.29 2.1 8.1 245AdvMicroD 6.23 +.06 9.58 5.60 - 5.7 2058AEP 37.69 +.24 38.98 33.09 4.9 12.6 690AES Corp 10.01 +.14 13.50 9.22 - - 1513Aetna 39.20 +.55 46.01 29.54 1.1 8.5 871AFLAC ✠ 31.94 +.48 59.50 31.27 3.8 8.4 862AgilentTec 32.30 +.62 55.32 30.23 - 11.3 823AirProd ✠ 78.22 +1.5 98 74.58 2.9 14.7 305Alcoa 10.29 +.22 18.47 9.91 1.2 11.7 1946Allergan ✠ 82.53 +.41 85.56 64.95 0.2 - 429Allstate 22.97xd +.2 34.37 22.27 3.6 22.8 660Altria ✠ 25.97xd +.2 28.13 23.20 6 15.8 1925AmEagle 12.11xd +.94 16.91 10 7.8 14.2 1373Amer Intl ✠ 22.84 +.65 52.66 21.19 54.3 2.8 834Ameren Cp 30.34xd +.11 31.44 25.56 5.1 79.3 434AmerExpr ✠ 46.64 +.19 53.80 37.33 1.5 12.2 1307Amerip Fin 40.37 +.6 65.12 38.93 2 8.1 418AmerTwrA ✠ 53.04 +.75 56.82 45.86 - 55.5 893AmsrceBrgn 38.72 +.96 43.47 30.26 1.1 15.5 679Anadarko ✠ 68.95xd +2.37 85.50 55.65 0.5 40.5 531AnalogDev 32.26 -.59 43.28 29.23 2.9 11 810AOL 12.07 +.16 27.65 10.06 - 5.6 349Aon Cp 40.26 +.26 54.58 38.74 1.5 15.3 581Apache ✠ 84.85 +2.12 134.12 81.86 0.7 8.6 568ArcherDan ✠ 25.35 +.16 38.02 24.43 2.5 8.1 1925AT&T ✠ 28.17 +.32 31.93 27.20 6.1 8.5 3332AutoZone 326.07 +4.37 333.98 224 - 16.7 53AvalnbyCom 117.22 -.13 139.89 103.17 3 - 180AveryDenn 25.84 -.02 43.50 24.85 3.7 9.4 298AvonProds 20.03 +.09 36.20 19.60 4.5 11.8 509BakerHu ✠ 50.43 +.82 80.99 40.03 1.2 16.8 935Ball 31.31 +.36 40.55 29.36 0.8 10 250BankAm ✠ 6.41 +.1 15.31 6 0.6 - 13700Bard (C R) 86.82 +1.01 113.83 79.27 0.8 23.3 170Baxter ✠ 54.07xd +.6 62.50 47.17 2.3 14.7 417BB & T 21.46 +.6 29.59 18.92 3 15.9 1022BectonDick ✠ 73.83xd +.09 89.75 71.80 2.2 13.5 188BerkHatA ✠ 107k +6680 131.46k 99k - 14.3 BerkHB 71.35 +4.98 87.65 65.35 - 16.3 3169Best Buy 24.85 +.67 45.40 22.75 2.5 8.4 585BkNYMeln ✠ 18.57 +.05 32.49 18.28 2.4 8.9 1801BlackRock ✠ 147.64 +.01 207.44 140.37 3.5 12 86Blackstone 12.60 +.53 19.62 11.42 4.9 - 623Block 13.50xd +.17 18 10.14 4.4 11.1 375

52 week VolStock Price Chng High Low Yld P/e ’000s






52 week VolStock Price Chng High Low Yld P/e ’000sMARKET SUMMARY

Boeing ✠ 62.07 +2.56 80.65 56.01 2.7 13.1 824BostonPrp 91.93 -.49 112.82 81.05 2.2 - 151BostonSci 5.88 +.12 7.96 5.55 - 14.6 1459BrisMySq ✠ 31 +.11 31.78 24.97 4.3 16.1 2249Brwn-FmnB 67.54xd +.91 77.03 58 3.4 17.1 40Cablevsn 17.11 +.12 27.60 15.41 3.2 11.6 672Cameron 45.07 +1.33 63.13 41.34 - 19.7 665Campbell 31.73 +.47 36.85 29.69 3.7 13.2 624CapOne ✠ 42.01 +1.07 56.26 35.94 0.5 5.5 1237CardinalH 43.09 +1.37 47.05 31.83 1.9 15.7 492Carefsn 23.92 +.53 29.97 22.01 - 18.2 284Carnival ✠ 31.91 +.59 48.11 29.07 2.7 13 1490Caterpillar ✠ 75.81 +1.95 116.42 72.62 2.3 12.5 1177CBS B ✠ 21.63xd +.19 29.67 15.54 1.4 12.6 1586Centrpnt 19.11 +.14 20.45 15.09 4.1 15.9 1002CentryTel ✠ 33.84 +.47 46.87 31.75 8.6 14.3 632ChesapEgy ✠ 26.98 +.94 35.95 20.97 1.2 24.2 3502Chevron ✠ 90.55 +.54 109.94 79.58 3.3 7.9 1927Chubb 58.96xd +1.07 66 55.66 2.6 8.5 408Cigna 43 +.74 52.95 34.33 0.1 7.3 585Citigroup ✠ 26.03 +1.05 51.50 23.19 0.5 8 5908Cliff sNat 59.01 +1.17 102.39 53.86 1.2 5.4 683Clorox 66.20 -3.2 75.42 60.57 3.5 31.6 432CNA Fin 22.20 +.2 31.51 21.63 1.4 11.8 63CnstelBdA 18.06 +.44 23.18 16.43 - 7.1 368Coach 56.86xd +.09 69.18 42.27 1.3 19.5 705Coca Cola ✠ 68.64xd +1.22 71.77 58.25 2.7 12.8 2589CocaCoEnt 25.39 +.59 29.98 20.61 41.4 13 438ColgPalm ✠ 90.76 +1.84 94.88 73.67 2.4 18.6 536Comerica 22.91xd +.42 43.53 21.48 1.7 11.6 648CompSci 26.94xd +.9 56.60 25.60 3 5.5 370ConagraFds 24.14 +.52 26.60 21.02 3.9 13.6 695ConocPhil ✠ 63.51 +1 81.80 56.02 4 8 2425ConsEdsn 35.84 +1.75 56.18 33.26 1.1 18.2 1421ConsolEd 56.66 -.08 58.79 47.51 4.2 15.5 606ConstltnE 38.03xd +.08 40.22 27.65 2.5 - 323Corning ✠ 12.17xd -.18 23.43 11.90 1.6 5.8 2631CoventryHlt 29.66 +.42 37.86 20.35 - 6.5 645Covidien ✠ 45.86 +.3 57.65 39.10 1.8 12.6 866CSX ✠ 18.85 -.4 27.04 17.69 2.2 12.2 3805Cummins ✠ 87.44 +1.18 121.41 79.62 1.4 11.5 566CVS ✠ 34.40 +.27 39.49 29.45 1.5 13.9 1589Danaher ✠ 43.03 +.32 56 39.54 0.2 14.8 981DardenR 47.50 +1.44 53.81 42.37 2.9 13.9 608Davita 69.02 +1.08 89.76 67.29 - 18 177Dean Foods 8.85 +.13 13.90 7.13 169.5 - 697Deere ✠ 67.68 +.21 99.80 66 2.2 11.1 1752DevonEngy ✠ 57.23xd +1.86 93.53 55.15 1.2 16.8 686DiamOfsh 58.99 +1.33 81.19 56.44 5.9 8.6 481DiscvrFin 25.64 +.29 27.92 16.13 0.8 6.9 1607Disney ✠ 30.20 +.37 44.34 29.05 1.3 12.7 3070DominRes ✠ 50.51 +.52 51.13 41.13 3.8 17.3 576Dover 47.76 +1.48 70.14 45.43 2.4 10.7 412DowChem ✠ 24.20 +.67 42.23 22.50 3.3 11.1 2303DrPepper 37.27xd +.3 43.13 33.67 3.1 15.8 335DTE Engy 48.93xd +.46 52.78 43.22 4.7 12 235DukeEner ✠ 19.90 +.11 19.95 16.87 4.9 13 2067DuPont ✠ 41.26 +.8 57 40.21 4 11.4 1470Eaton 35.35 +.62 56.49 33.97 3.7 10.4 861

Ecolab 49.88xd +.84 57.18 43.81 1.4 22.5 413EdsnInt 37.67 +.56 40.15 32.65 3.4 11.7 463ElPasoCp 17.45xd +.28 21.54 12 0.2 25 1389EMC ✠ 21.11 +.49 28.72 19.40 - 22.1 3115Emerson ✠ 43.13 +.8 62.24 41.37 3.2 14.3 1357Entergy 66.42 +1.15 77.93 57.60 5 9.5 262EntPrdPrt 40.77 +.17 44.35 36 5.8 26 201EOG Res ✠ 74.78 +1.06 121.40 73.15 0.8 48.4 689EqResPrp 52.64xd -.49 63.86 47.02 2.8 - 455EQT 56.40 +1.48 65.97 33.48 1.6 26.5 518EsteeLdrA 93.75 -1.39 108.77 60.94 0.8 26.9 388Exelon ✠ 42.39 -.04 45.26 39.05 5 10.6 1916ExxonMob ✠ 71.19 +1.88 88.23 61.27 2.6 9.4 5338Fedex ✠ 69.20xd +1.9 98.66 64.55 0.7 14.3 738FidltyNFn 15.43xd +.03 17.43 12.75 3.5 10.4 274FirstEgy 45.13 +.01 46.51 35 6.1 25.4 365Flowsrve 76.15 +1.51 135.69 72.89 1.6 10.4 92Fluor 50.11xd -.2 75.69 47.82 1 24.2 571FMC Tech 39.43 +.71 50.33 32.99 - 26.7 407Ford ✠ 9.93 +.07 18.97 9.40 - 5.9 3536ForestLabs 31.31 +.44 40.50 30.03 - 7.6 513FortuneBrds 56.67 +1.15 65.47 48.56 1.3 23.8 245Franklin ✠ 100.22 +1.46 137.56 96.29 1 12 328Freeport ✠ 33.39 +1.02 60.75 30.98 4.2 5.8 4939Gannett 9.31xd +.22 18.93 8.29 2.1 4.4 694GAP 17.10 +.79 23.72 15.15 2.6 9.4 1138GenDyn ✠ 56.95 +1.03 78.25 55.10 3.2 8.1 509GenElectr ✠ 15.39xd +.18 21.65 14.72 3.8 12 7683GenMills ✠ 39.50 +.63 40 34.54 2.9 15.1 972GenMot ✠ 20.90 -.1 39.47 19.86 3.6 4.5 1377GenuineP 50.31xd +.9 57.65 44.15 3.5 15.1 244GenwthFin 5.14 +.05 14.77 4.80 5.8 - 1050GoldmSchs ✠ 97.12xd +1.94 175.29 91.40 1.4 9.5 849Goodrich 121.29xd -.46 122.31 71.45 1 22.9 859Grainger 157.04 +2.77 164.14 117.25 1.5 18.7 104Halliburton ✠ 32.97 +1.3 57.77 28.86 1.1 12.8 4369HarleyDavid 34.50 +.61 46.88 27.79 1.3 22.5 425Harris 35.98 +.44 53.38 34.15 2.9 7.8 278Hartford 16.38xd +.31 31.08 15.48 2.1 4.7 1606HCP 35.37 +.22 40.75 29.01 5.4 31.3 480Heinz 50.70xd +.96 54.99 47.05 3.7 16.9 619Hershey 59.76 +.68 59.85 45.67 2.3 22.7 188Hess ✠ 53.15xd +1.67 87.39 50.43 0.8 6.5 649Hew-Pack ✠ 22.54xd +.22 49.38 21.50 1.8 5.3 3733HlthCare 47.66 +.76 55.21 41.15 5.9 - 469HomeDep ✠ 33.61 -.11 39.38 28.13 2.9 15 3484Honywell ✠ 43.47 +1.04 62.27 41.51 3 13.9 1206HormelFd 27.25 +.37 30.50 22.08 1.8 18.4 210HortonDR 9.25 +.08 13.50 8.82 1.6 - 1410Hospira 37.04 -.37 60.40 34.18 - 14.8 236Host H&R 10.98 +.43 19.88 10.19 0.9 - 1224Humana 78.87 +1.79 84.32 49.01 0.6 10.5 370IBM ✠ 173.96 +4.62 185.61 133.69 1.6 14.2 1035IllinoisTool ✠ 43.62 +.96 59.27 40.82 3.2 11.5 815IngersollR 32.14xd +1.14 52.33 27.12 1.2 11.9 691Int.Paper 25.37 +.35 33.01 21.08 3.3 8.9 800Intercont 122.93 +.83 135.36 102.57 - 20.5 93Interpubl. 7.32 +.08 13.34 6.98 2.5 13.6 1437IntlGmeT 13.89xd +.35 19.14 13.38 1.7 16 1565

INVESCO 15.92 +.14 27.50 15.40 2.9 10.8 960IronMount 31.70xd +1.05 35.79 19.93 2.8 - 337ITT 42.54xd +1.08 64 40.26 2.4 13.7 285JacobsE 34.02 +.26 53.18 31.72 - 13.8 317JMSmckr 74.80 +.56 80.25 59.71 2.4 18.1 96John&John ✠ 62.60 +1.01 68.05 57.50 3.5 15 1871JohnsonCn ✠ 26.93xd +.2 42.91 25.91 2.4 12 1397JPMrgnCh ✠ 30.78 +1.19 48.35 28.53 2.6 6.6 6589JuniperNtw 18.94 -.01 45 18.65 - 18.1 2281Kellogg ✠ 53.36 +.76 57.70 48.51 3.1 16.2 492Keycorp 5.88 +.17 9.77 5.63 1.4 6 1569Kimb-Clark ✠ 70.59xd +.62 70.91 61.01 3.9 16.7 488Kimco Real 15.37 +.15 20.31 14.54 4.7 - 913KindMnE 68.79 +.66 77.99 63.43 6.6 - 80KohlsCp 48.02xd +1.84 58 42.14 1.6 12.1 933Kraft Food ✠ 34.24 +.52 36.30 29.80 3.4 19.7 1671Kroger 21.95 +.17 25.85 20.53 2 11.4 2623L3 Comms 62.33 +2.18 88.55 58.30 2.8 7.3 112LabCpAmer 82.15 +2.49 100.93 75.75 - 16.3 194LasVegasSd ✠ 43.48 -.9 55.46 33.86 - 36.1 3492Legg Mason 25.77 +.26 37.82 24.12 1.1 14.6 439Leucadia 23.47 -.01 39.14 22.91 1.1 2.7 376Lilly (E) ✠ 36.58 +.51 39.78 33.47 5.4 8.6 1181Lim.Brands 41.97 +1.6 41.99 23.21 11.3 15.1 1034LincolnNat 15.57 +.27 32.68 15 1.3 4.5 1859Lockheed ✠ 73.48 +1.39 82.42 66.39 4.4 9.7 438Loews 34.90 +.5 45 33.79 0.7 12.5 375Lorilliard 109.58 +3.58 116.84 72.40 4.6 15 312Lowe’s ✠ 19.78 +.04 27.45 18.07 2.5 13.3 2348M&TBkCp 71.81xd +2.8 91.05 66.45 3.9 10.1 183Macys 27.19xd +1.57 30.62 21.69 1.1 11.3 1730MarathnO ✠ 22.98 +.92 34.97 19.44 3.9 7 1854Marriott 27.45 +.28 42.78 25.49 1.4 21.1 627MarshMcL 26.90 +.22 31.57 23.41 3.2 16.5 744Masco Cp 7.13 -.01 15.02 6.79 4.2 - 604Mastercard ✠ 338.06 +1.03 361.82 215 0.2 20.9 137MBIA 7.30 -.1 14.86 5.99 14 - 231McDonalds ✠ 88.90 +1.53 91.21 72.14 2.8 18 1499McGrawH 43.10 +.17 46.99 32.51 2.3 15.4 409McKesson ✠ 74.65xd +1.29 87.32 59.55 1 17.3 686Mdwstvco 25.45 +.3 34.51 23.74 3.9 13 456MedcoHlth ✠ 48.37 +.44 66.22 47.36 - 14.3 357Medtronic ✠ 33.54 +.48 43.33 30.18 2.8 11.7 1116Merck ✠ 31.58xd +.53 37.68 29.47 4.8 22.9 1973MetLife ✠ 27.84 +1.02 48.72 26.39 2.7 12.2 1537MGM Rsts 10.45 +.13 16.94 9.02 - 2.1 3543Mohawk 42.56 +1.3 68.78 39.93 0 16.5 100MolsonB 39.52 +.39 51.11 38.72 3 11 216Monsanto ✠ 63.99 +.35 77.09 47.17 1.8 22.2 775Moodys 30.52 +.15 41.93 24.83 1.6 11.5 514MorganStly ✠ 14.08 +.36 31.04 12.49 1.4 22.9 2803Mosaic ✠ 57.45 -.25 89.24 54.50 0.3 10.2 2536MotorolaSol 41.51xd -.18 47.90 31.33 2.2 22.4 472MurphyOil 45.60 +.74 78.14 43.05 2.4 9.3 807Nabors 14.55 +.48 32.47 13.50 - 25.1 1203NewelRbm 11.66 +.22 20.37 11.31 2.2 10.6 888NewmontM ✠ 63.92xd +1.06 71.25 50.06 1.3 13.3 1017NextEraE ✠ 54.22 +.41 58.96 49 4 12.3 299

Nike ✠ 88.47xd -.17 94.20 75.05 1.4 19.2 921NiSource 21.22 +.13 22.91 16.65 4.3 19.3 704NobleEgy 71.91 +1.66 101.06 69.25 1.1 21.3 619Nordstrom 47.51 +1.99 52.15 35.92 1.9 15.7 699NorfolkS ✠ 62.41 +.88 78.39 57.92 2.5 13.1 620NorthrpG ✠ 52.22 +1.17 70.60 49.20 3.7 8.2 508NRG 21.74 -.02 25.66 18.22 2.3 9.5 359NtlOilVarc ✠ 54.19 +.96 86.71 43.36 0.8 13.2 1443Nucor 32.28 +.71 49.24 30.72 4.5 21.8 1165NYSE Eurnxt 24.99xd +.27 41.60 23.94 4.8 11.5 283OccidPet ✠ 75.60xd +3.34 117.88 69.90 2.3 10.9 994Omnicom 37.54xd +1.18 51.25 35.27 2.5 12.3 718ParkHn 62.61 +.29 99.40 60.36 2.2 9.9 438PeabdyEngy 37.40 +.63 73.87 35.50 0.9 11.4 968Penney 26.99 +1.46 41 23.45 3 16.7 850Pepsico ✠ 61.87xd +1.53 71.88 59.25 3.2 15.7 1582Pfi zer ✠ 17.74 +.29 21.45 16.26 4.4 16.5 5643PG&E 43.05 - 48.62 37.57 4.2 16.1 791PhilMorris ✠ 64.42xd +.61 72.74 55.10 4.2 14.7 1822PionrNat 69.42 +1.86 106.07 63.61 0.1 30.2 252PitnyBowes 19.29 +.5 26.35 18 7.6 11.2 727Plum Creek 35.10 +.27 44.28 34 4.8 32.9 333PNCFin ✠ 48.30 +1.01 65.18 42.70 1.9 7.8 544PP&L 28.63xd +.14 29.61 24.10 4.9 11.5 640PPG Inds 71.88 +3.06 97.81 68.28 3.1 11.3 342Praxair ✠ 94.26 +1.35 111.74 88.57 2.1 21.9 286PrecParts ✠ 163.92xd +1.81 173.46 126.91 0.1 22.3 227PrinFinGp 23.35 +.46 34.94 21.56 2.4 8.6 516ProctGmbl ✠ 62.71 +1.46 67.71 57.56 3.2 16 1712ProgreOh 17.37 +.21 22 16.88 2.3 9.8 811ProgressNrg 51.62 +.27 51.74 42.06 4.8 17.9 492Prologis 25.63xd +.12 37.46 11.19 4.4 - 445Prudential ✠ 44.95 +1.02 67.50 43.06 2.6 7.8 1071PublicSVC 33.84xd +.23 35.48 27.98 4 10.5 491PublStor ✠ 113.95xd +.25 124.78 94.60 3.1 33.4 102PulteGrp 4.01 -.04 8.98 3.41 3 - 794QEP Res 27.72 +.22 45.20 27.16 0.3 16.3 469Questar 17.71 +.06 19.01 16.36 3.4 15.7 342QuestDg 49.36 +1.31 61.21 45.81 0.8 17.7 296RalphLrn 145.10 -1.43 154.59 87.95 0.5 25.2 300RangeRes 59.86xd +1.33 77.24 34.94 0.3 - 617Raytheon 40.31 +1 53.12 38.36 4.1 7.5 488Red Hat 42.54 +.22 48.99 31.77 - 63.4 805Reg.Financ. 3.46xd +.03 8.09 3.35 1.2 - 1363RepSrv 28.14 +.35 33.10 24.72 2.9 22.3 809ReynoldsAm ✠ 36.92xd +.46 39.83 29.05 5.6 16 395Rob.Half 20.70 +.34 34.26 19.70 2.7 27.8 252Rockwell 53.86 +1.57 98.19 50.37 2.7 12.5 287RockwlColl 52.87 +1.32 67.29 43.83 1.8 13.7 322RoperInd 69.29 -.66 88.71 64.03 0.6 17.5 102Safeway 16.94xd +.88 25.43 15.99 3.1 11.9 1349SAIC 12.09 +.03 17.65 11.86 - 8.5 539Salesfrc ✠ 118.70 -1.6 160.12 97.92 - - 507SaraLee 17.48xd +.38 19.80 13.22 2.6 24.7 656Schlmbrg ✠ 62.30xd +1.1 95.53 58.77 1.5 17 4412Schwab(C) ✠ 11.36 -.02 19.69 10.83 2.1 18.9 2317ScrippsNtwk 41.16 +.43 53.66 36.80 0.9 15.1 118Sempra 50.37 +.19 55.97 44.79 3.6 10.4 359SherWil 75.81 +4.43 87.86 69.47 1.9 16.6 371

SimonProp ✠ 112.13 -.58 123.44 92.15 2.9 39.5 322SLM Cp 12.53 +.12 17.10 10.92 3.6 - 824SouthCpr ✠ 26.27 +.07 50.35 25.06 8.3 - 540Southern ✠ 42.37 -.05 43.09 35.73 4.4 18 1016SpectraEgy 24.74 +.33 29.23 22.02 4.2 14 713SprintNext 3.09 -.09 6.15 2.95 2.4 - 3365Starwood 39.96 +.24 65.51 37.89 0.8 20.3 557StateSt ✠ 31.57 +.63 50.26 30.30 1.7 9.9 876StJudeMed 38.09 +.19 54.18 37.13 1.7 14.2 967Stryker ✠ 47.03 +.87 65.20 43.73 1.5 14.9 425Sunoco 33.37 +.66 46.94 29.35 1.8 - 457Suntrust 17.74 +.77 33.13 16.51 0.5 22.2 1012SW Airl. 8.66 +.28 14.32 7.79 0.2 13.1 1876SwestEgy 35.30 +1.39 49.24 32 - 20.1 1879Sysco 26.27 +.4 32.75 25.48 4 13.4 852TargetCp ✠ 50.49 +1.35 60.97 45.28 2.2 12 999Teradata 55.15 +1.77 62.70 36.83 - 28.8 313TexasInstr ✠ 27.13 -.09 36.71 24.44 2.1 10.4 2010Textron 17.76xd +.83 28.86 14.67 0.5 30 939TheTrvelers ✠ 47.71xd +.59 64.16 46.62 3.2 9.3 750ThrmoFshr ✠ 50.62 -.32 65.85 47.17 - 26.1 709Tiff any 69.05xd -1.48 84.49 45.32 1.6 21.9 370TimeWrnr ✠ 30.78 +.89 38.62 27.63 3 13.3 1381TimeWrnrC ✠ 65.59 +.8 80.85 52.16 2.8 15.5 498TJX ✠ 57.72 +1.15 59.71 42.55 1.2 17.3 550Torchmrk 34.87 +.56 45.37 32.78 1.3 7.8 251TrnsOcean ✠ 51.89 +.68 85.97 49.08 94 - 619TycoInt ✠ 42.79 -.19 53.38 36.28 2.3 14.4 1138UnionPac ✠ 82.85xd -.26 107.89 79.35 2.1 13.8 656UNUM Grp 21.13 +.38 27.16 20.24 1.8 7.4 823UPS B ✠ 62.90 +.9 76.99 60.75 3.2 15.5 1175USBancorp ✠ 23.87 +.66 28.94 20.10 1.8 11.4 2893USSteel 22.73 +.5 64.02 21.73 0.9 - 2121UtdHlthcre ✠ 48.67 +1.07 53.36 33.94 1.2 10.9 1454UtdTech ✠ 71.43 +2.51 91.83 67.13 2.5 13.8 1098ValeroE 18.92 +.44 31.12 16.72 1.1 8.1 1218VarianMedS 50.89 +1.04 72.19 49.16 - 15.2 133Ventas 49.33xd +.53 57.40 43.26 4.6 43.4 394Verizon ✠ 36.26 +.38 38.95 31.60 5.4 16.2 1685VF Cp 126.39 +1.3 129.65 78.21 2 22.2 201ViacomB ✠ 40.31xd -.37 52.67 35.61 2 - 1852Visa ✠ 89.79 -.29 94.75 66.50 0.7 18.5 927Vornado 78.13 -.44 98.76 73.14 3.5 20.5 173VulcanMat. 29.21 +.33 48.25 28.21 3.4 - 199Walgreen ✠ 35.73 +.84 45.34 30.19 2.1 14 966WalMart ✠ 51.76 +.96 57.89 48.31 2.8 11.7 2490WashPost 319.11 -6.81 455.64 309.63 2.9 12.6 8WasteMng 31.79 +.98 39.69 27.76 4.2 16 1331WatersCp 75.97 +.88 99.94 69.60 - 17 115Weatherfd 13.32 +.42 26.25 12.62 - 57 2045Wellpoint ✠ 65.89 +1.84 81.92 52.93 1.1 8.7 468WellsFargo ✠ 24.30 +.61 34.17 22.64 1.7 9.4 4683WestDigtl 27.38 +.94 41.86 25.41 - 8.9 544WestUnion 15.42xd +.32 22.03 15 1.9 10.5 1029Weyerhsr 15.99 +.04 25.33 15.11 19.7 3.8 1245Whirlpool 51.74 +1.74 92.25 47.35 3.6 15.7 285WilliamsCp 25.52 +.51 33.47 18.50 3 - 1259WiscnsnE 31.18 -.03 32.49 27.01 3.1 14.6 376XcelEngy 24.79xd +.1 25.59 21.20 4.1 14.5 838

Xerox Cp 7.32 +.22 12.05 7 2.3 10.5 1793

XL Grp 18.64xd +.28 25.43 17.97 2.3 24.3 527

Yum!Brands ✠ 52.34 +.68 57.75 45.95 2 21 701

ZimmerHld 55.04 +1.52 69.93 47.09 - 16.8 327

NASDAQ (Sep 26 / 3:30 pm/US$)

ActivBlz 11.96 +.24 12.65 10.40 1.4 21.2 5522

Adobe 24.83 -.05 35.99 22.67 - 13.6 4120

Amazon ✠ 226.76 +3.15 244 151.40 - - 4719

Amgen ✠ 55.18 +.08 61.53 47.66 0.5 11.5 4035

ApolloGp 41.72 +.37 54.23 33.75 - 14 819

AppldMat 10.28 -.31 16.93 10.19 3 7.1 15656

Apple ✠ 399.31 -4.99 422.86 275 - 15.8 24251

Autodesk 27.83 -.51 46.15 22.99 - 25.6 2737

BedBathB 58.86 +1.64 60.91 42.31 - 16.8 2528

Biogen ✠ 95.45 +1.55 109.63 54.38 - 21.6 1237

BMCSware 38.80 -.05 56.55 37.36 - 15.4 1207

Broadcom 33.70 -.83 47.39 30.71 1 18.9 8078

CA Inc 19.98 +.04 25.68 18.61 0.9 12.2 4129

Celgene ✠ 62.89 +.22 65.86 48.92 - 28.9 2694

CH Rob 67.69xd +1.67 82.61 62.64 1.7 27.1 733

CheckPnt 52.76 -.11 61.46 34.12 - 22.5 1283

Cisco ✠ 15.86 +.25 24.60 13.60 1.1 13.6 38388

Citrix 54.58 +1.46 88.49 50.21 - 30.9 2253

CmcstASp 21.42 +.3 25.40 16.46 2 - 2685

CME Group ✠ 260.18 +2.2 328 236.50 2.1 14.6 272

Cognizant ✠ 63.04 +.5 83.48 53.54 - 23.7 2008

ComcastA ✠ 21.68 +.28 27.16 16.91 2 15.8 11432

Costco ✠ 83.98 +.61 86.34 61.90 1.1 31 2231

Dell ✠ 14.57 +.17 17.60 12.51 - 7.8 14469

DirectTV ✠ 42.78 +.76 53.40 39.12 - 14 5405

EBay ✠ 31.85 -.24 35.35 23.93 - 24.1 10382

ElectArt 21.55 +.31 25.05 14.67 - - 7018

Expedia 28.11 +.94 32.89 19.61 1 18 4742

ExpIntWsh 40.85 +.4 57.15 39.28 1.1 23.3 1456

ExpressSc ✠ 39.03 +.32 60.89 37.80 - 15.9 5925

Fifth 3rd 10.21 +.37 15.75 9.13 2.1 10.4 11653

First Solar 69.94 -.3 175.45 61.55 - 11.9 1876

Fiserv 50.12 +.47 65.41 48.75 - 16 701

Garmin 31.24xd +.5 36.42 28.49 3.8 9.9 485

GileadSci ✠ 39.69 +1.26 43.49 35.26 - 11.5 7655

Google ✠ 525.06 -.45 642.96 473.02 - 18.9 1884

Hasbro 34.97 +.52 50.17 33.21 3.1 13.3 1425

Intel ✠ 22.02 -.14 23.96 18.77 3.6 10.1 49330

Intuit 47.44 +.17 56.46 39.87 0.3 23.5 2447

IntuitSrg 374.97 -.04 415.19 246.05 - 35.2 222

KLA Tenc. 39.06 +1.33 51.83 33.01 2.8 8.4 4330

LibIntCpA ✠ 15.89 -.09 18.65 12.44 - 16 3493

LifeTch 37.58 -.38 57.25 35.30 - 19.3 1395

LinearTec 28.54 -.11 36.14 25.79 3.3 11.4 3619

Marvell 15.11 -.19 22.01 11.41 - 12.2 7893

Mattel 25.95 +.37 28.49 22.01 2.7 13.5 2612

MaximInt 23.80 -.09 28.44 17.62 3.6 14.8 3624

MicronT 6.45 -.21 11.95 5.18 - 10.5 24911

Microsoft ✠ 25.16 +.1 29.46 23.65 2.7 9.3 36997

NetApp ✠ 35.19 +.07 61.02 33.41 - 21.3 3949

NewsCorpA ✠ 16.13xd +.02 18.35 12.88 1.1 14.2 27337

NewsCorpB 16.15xd +.02 19.08 13.99 1.1 13.5 4784

NII Hldgs 28.98 -.75 46.32 28.57 - 11.7 2263

NorthnTst 34.42xd +.14 56.86 33.51 3.3 13.7 1284

Nvidia 13.58 -.21 26.17 10.38 - 15.1 20300

Oracle ✠ 29.35 +.45 36.50 24.75 0.7 16.7 28519

PACCAR 34.51 +.45 58.75 33 2.6 17.5 3169

Paychex 26.50 +.28 33.91 25.12 4.7 18.6 2835

Prclne.cm ✠ 509.41 -5.2 561.88 325 - 36 1259

Qualcomm ✠ 50.15 -.14 59.84 42.45 1.6 20.8 14692

RschMt 21.34 +.02 70.54 20.41 - 3.9 11720

Seagate 11.01 +.26 18.35 9.96 3.5 10.1 3788

Sears Hld 52.83 +.28 94.79 51.14 - - 297

Staples 13.29xd +.07 23.75 11.94 2.9 10.2 6750

Starbucks ✠ 39.21 +.5 42 25.37 1.3 25.8 6324

Symantec 16.59 +.22 20.50 14.76 - 20.5 8107

T.RowePr 47.16xd +.25 71.29 45.75 2.5 16.6 2504

VertexPhm 49.08 -1.65 58.87 32.08 - - 1965

WynnRes 133.04 -5.64 172.58 79.43 19.2 44.4 3994

Xilinx 28.47 -.45 37.37 24.77 2.5 12 4027

Yahoo ✠ 14.63 -.08 18.84 11.09 - 16.6 19753

Other International StocksAUSTRALIA (Sep 26/Aust$)AMP 3.72xd -.03 5.82 3.61 9.5 11.8 12625ANZ ✠ 18.78 +.03 25.96 17.63 10.3 9.1 11293AXA AsPc 6.42# - 6.46 5.10 2.9 22 BHP Biltn ✠ 33.95xd -.6 49.81 33.68 4.1 8.5 13798Brambles 6.41xd -.04 7.46 5.79 4.3 20.9 3633CCAmatil 12.09xd +.18 12.74 10.04 5.8 20.8 2438CmwBkAu ✠ 43.85xd +.52 55.77 42.30 10.3 11.1 7433CSL 29.02xd +.57 38.07 26.12 2.7 16.7 2952Fortescue ✠ 4.60xd -.35 7.34 4.58 1.9 15 34267Fosters 5.26xd - 5.58 4.23 5.7 - 70448Leighton 17.74 +.42 38.11 16.79 4.7 - 1486MacQuarie 20.03 -.68 41.95 19.94 9.1 7.1 2315NatAusBk ✠ 21.16 +.15 28.18 19.64 10.8 10.3 7053NewcrestM ✠ 32.86xd -3.24 43.71 32.66 0.9 26 9625NewsCorpA 16.41xd +.39 17.50 12.87 0.9 - 655NewsCorpB 16.48xd +.33 18.48 13.32 0.9 17 2889Orica 21.44 -.43 28.10 21.34 5.6 5 1995OriginEgy 12.40xd -.37 17.30 12 5.6 63.3 5136QBE Ins ✠ 12.25 +.21 19.60 11.89 10.7 9.4 9077RioTinto 60.20 -2.45 89.04 59.83 2.6 8.2 5184Santos 10.40xd -.45 16.90 10.11 4.1 11.1 5208Stockland 2.75 +.02 3.99 2.52 8.5 8.7 10211Suncorp 7.93xd -.01 9.76 6.03 6.2 22.3 7995Telstra ✠ 3.04 -.02 3.17 2.55 13 11.6 49383Wesfarm ✠ 30.47xd +.62 35.26 26.04 6.9 18.3 3632Westfi eld ✠ 7.47 -.05 10.20 7.24 7.4 21.6 9930Westfl dRT 2.40 +.02 2.75 2.18 3.5 12.8 12720Westpac ✠ 19.19 +.46 25.60 17.84 11 7.7 10881WoodsdPt ✠ 29.80xd -1.57 50.85 29.76 5 18.5 5720Woolworth ✠ 24.77xd +.2 30.18 23.70 6.9 14.3 2961

AUSTRIA (Sep 26/Euro)Andritz 61.58 +.5 76.18 50.65 2.8 15.7 140ErsteBk ✠ 18.96 +1.8 39.62 15.52 3.7 7.9 1543Immofi n 2.18 +.01 3.33 2.12 4.6 6.8 2987OMV 22.41 -.3 35 20.81 4.5 7.8 479Raiff eisen 21.16 +1.98 45.40 17.71 5 3.4 545Strabag 22.35 +.25 24.30 16.52 2.5 14.5 102TelekAust 7.08 +.11 11.40 6.80 10.6 - 504Verbund 20.93 +.5 32.99 19.65 2.6 18.9 198Vienna Ins 26.93 +.93 43.84 24.43 3.7 3.4 82Voestalp 21.05 +.01 39.37 19.76 3.8 5.9 548

BELGIUM/LUX (Sep 26/Euro)Ageas 1.30 +.09 2.53 1.09 6.2 - 9235AnBshInBv ✠ 38.74 +.83 46.33 33.85 2.1 18.6 2969Belgacom 22.03 +.19 28.99 21.44 9.9 8.7 581Colruyt 30.15 +.18 41.69 29.52 3.1 14.1 189Dexia 1.40 +.09 3.38 1.23 - - 3829Dlhaiz 42 -.04 60.80 40.82 4.1 7.4 232GBL 50.23 +.84 68.79 47.44 5.1 10.3 131KBC 14.90 +1.04 34.60 12.55 5 2.8 644SES 17.37 -.04 19.90 16 4.6 - Solvay 71.04 +1.95 112.50 67.05 4.3 28.1 195UCB 31.08 +.49 34.10 24.57 3.2 36.6 327

BRAZIL (Sep 26 / 2:30 pm/Real)Ambev ✠ 55.71 -.09 58.29 40.24 1.2 21.6 1156BcoBrad 22.40xd +.22 29 21.13 1.2 - 264BcoSantdr 0.13xd -.01 0.21 0.12 0.2 - 306BM&FBovsp 9.18xd -.03 15.70 7.55 2.3 16.2 13977BncBrasil ✠ 24.15xd +.25 34.98 21.10 7.5 5.2 2897Bradesco ✠ 27.33xd +.48 37.04 25.12 1.1 9.5 6693BrasilFds 31.29 +.44 33.31 23.75 1.3 18.8 1416Cielo 42.39xd +.24 116.18 35.73 5.9 - 885Eletrobras ✠ 16.19 +.19 26.10 15.42 21.5 - 510GerdauPf 14.20 +.36 24.78 10.85 1.8 12.1 4900ItauHldFin ✠ 28.09xd +.66 43.72 25.15 3.6 9.5 6517ItuasaPf ✠ 9.23xd +.17 14.04 8.11 4.1 8.8 6738JBS 3.88 -.01 7.68 3.73 - - 2233OGX Petro ✠ 12.11 +.4 23.39 9.09 - - 16937PetrobasPf 19.65 +.49 29.26 18.37 6.2 - 13958Petrobras ✠ 21.59 +.59 33.92 20 5.6 6.1 2888SiderNacO 15.02 +.08 30.34 12.80 6.8 7.5 2691SouzaCruz ✠ 18.73xd +.3 21.06 15.20 2.8 24.5 558UsinasMin 11.53 -.07 23.43 9.86 8.1 11.6 5255ValRio ✠ 43.72 -.58 59.91 38.70 1.6 - 3796ValRioPrf 40.56 -.44 52.40 35.52 1.7 5.1 12347

CANADA (Sep 26 / 3:30 pm/Can $)Agnico-E 63.48 +.83 88.52 53.05 1 34.8 1196Barrick ✠ 48.30 +.57 55.99 42.06 1 12.3 3838BCE ✠ 38.55xd -.04 39.65 32.64 5.1 15.1 1413BkMontrl ✠ 57.33 +1.37 63.94 55.09 4.9 11.1 1886BkNvaS ✠ 51.37 +.64 61.28 49.12 4 11.3 1653Brookfi eld ✠ 27.76 +.36 33.95 26.37 1.9 7.8 691Cameco 19.21 +.21 44.28 18.45 1.9 17.1 983CanadPcR 49.99 +1.4 69.48 46.01 2.3 15.6 756CanImp ✠ 71.49xd +.33 85.56 67.32 4.9 10.9 1358CanNatRs ✠ 30.84xd +.61 50.50 29.80 1.1 26.7 2905CanNatRy ✠ 67.82xd +.48 78.08 63.53 1.8 13.9 1709CanOilSd 20.44 +.49 33.94 19.60 6.4 8.6 3633CenovusE ✠ 31.66xd +.42 38.98 28.18 2.5 14.4 2885Enbridge ✠ 32.05 +.21 32.87 25.95 3 21.3 2063EnCana ✠ 20.75xd +.06 34.25 20.20 4 20.8 2466Goldcorp ✠ 46.88 -.07 55.93 38.99 0.8 22.6 2713GtWesLif ✠ 19.67xd -.03 27.85 19.42 6.3 11.3 652HuskyE ✠ 22.50xd +.24 30.58 21.36 5.3 11.7 888ImpOil ✠ 37.22xd +.72 54 35.56 1.2 11.7 631KinrossG 15.50xd -.17 19.98 13.53 0.7 17.2 4691Loblaw 37.27xd +.21 43.73 34.51 2.3 14.7 231Manulife ✠ 11.73 +.27 19.29 10.95 4.4 9.6 7079NatBkCan 67.64xd +.66 81.98 63.80 4.1 10 929Nexen 16.42xd +.29 27.11 15.67 1.2 28.6 3879Potash ✠ 47.81 +.53 63.19 45.32 0.5 18.2 2108Power Cp 21.25xd +.25 29.50 20.90 5.5 10 720PowerFn ✠ 24.41 +.16 31.98 24.05 5.7 11 402ResMot 22.03 +.05 69.30 21.05 - 4.1 1945RogCmB ✠ 35.29xd -.68 41.64 33.29 3.9 14.1 1724RylBkC ✠ 46.95 +.86 61.53 44.38 4.4 11.6 3072Suncor En ✠ 27.13 +.81 47.27 25.61 1.5 14.5 6078SunLfFin 23.96xd +.06 34.39 23.43 6 8.7 1826TalismnEgy ✠ 13.43 +.5 24.82 12.78 2.1 34.5 3453TeckResB ✠ 30.58 -.15 64.62 29.60 2 9.5 3123TelusCorp 51.81xd +.08 55.04 44.05 4.1 15 1075ThmReut ✠ 28.65 +.1 41.61 27.81 4.5 19.2 1078TntoDom ✠ 72.44 +1.51 86.82 69.01 3.6 12.5 1869TransCan ✠ 41.92 +.4 43.72 35.49 4 20.7 1001Weston Ltd 66.02xd -.44 78.03 63.80 13.9 17.4 102

CHINA (Sep 26/Renminbi)AgricBkCh 2.48 -.03 3.10 2.46 2.2 6.8 83000Air China 8.05 -.13 17.31 8.02 1.5 8.2 8950AlumCpCh 8.33 -.03 14.08 8.15 0.1 - 9461

BaoshanStl 4.96 -.03 8.04 4.94 6 8.8 27049Bk China 2.85 -.04 3.66 2.82 5.1 6.7 21535BkofComms 4.43 -.09 6.31 4.38 0.4 - 39495ChCiticBk 4.43 -.07 6.47 4.11 1.2 7 24987ChCoalEgy 8.86 +.1 13.37 8.65 1.7 15.8 15555ChConstBk 4.34 -.09 5.45 4.33 4.8 6.8 18303China Life 14.91 -.59 28.39 14.86 2.7 14.8 12849ChinaUncm 5.17 -.19 6.37 4.43 0.5 - 120811ChMinsheng 5.56 -.17 6.29 4.92 1.8 6.6 106478ChMrchBk 10.90 -.31 16.08 10.85 2.6 7.5 54070ChPacIns 18.65 -1.42 28.99 18.20 1.9 15.5 31541ChShenEgy 25.52 -.34 32.48 22.51 2.9 12.6 11896ChStCnsEng 3.38 -.03 4.19 3.30 1.8 9.1 46144ChYgtzPwr 6.24 -.01 8.77 6 4.1 11.5 14840Citic Sec ✠ 11.67 -.42 17.25 10.42 4.2 10 85523Daqin Rail 7.19 -.07 9.65 7.12 4.8 10.3 27029InCBkChina 3.95 -.06 4.92 3.86 4.6 7.3 37657IndstrlBk ✠ 12.31 -.42 17.49 12.01 2.1 6 51754Moutai ✠ 188.12 -5.93 222 154.80 1.1 28.5 4221Ping An 34.37 -3.64 67.20 34.24 1.6 13 68083Saic Motor ✠ 15.38 +.01 22.45 14.24 1.3 8.3 24143ShangPort 3.12 -.12 4.90 3.11 3.4 12.5 11259ShngPdgBk ✠ 8.44 -.29 15.95 8.40 1.4 6.4 81748ShznVanke 7.15 -.25 10.09 7.04 1.4 10.6 52372Sinopec 6.90xd -.11 9.92 6.87 3.3 8.1 18032WulianYnb ✠ 35.75 -.68 41.48 30 0.8 24.7 12400

CZECH REP (Sep 26/Koruna)Cez 699.50 +7.9 966 662 7.1 7.7 433KomercBnk 3.2k +168 4.6k 2.71k 8.4 9.9 117TelCzRep 381.80xd -5.7 440 369 10.5 10.7 362

DENMARK (Sep 26/Kr)Carlsberg B 335 -4.8 623 333 1.5 11.4 696DanskeBk 71 +1 145.75 61.15 - 14.7 2390MoellerMA 31.12k -260 52.65k 30.12k 3.2 - MoellerMB ✠ 32.58k -340 54.3k 31.62k 3.1 5.5 6NovoB ✠ 543 +5.5 703 482.60 1.8 19.8 772Novozym 787.50 +.5 904.50 655 0.6 28.6 131TDC 43.35 +.6 55 39.41 5 12 897VestaWind 85.85 +2.45 232.50 80.15 - 7.2 1777WilDemant 406.70 +1.6 494.90 351.50 - 21.2 68

DUBAI (Sep 26/US$)DP World 9.75 -.15 15.07 9.37 1.8 21.7 256

FINLAND (Sep 26/Euro)Fortum ✠ 17.55 +.3 24.09 15.63 5.7 9.6 1701Kone Corp 35.47 -.33 44.37 34.35 2.5 16.1 610Metso 21.67 +.18 43.27 20.72 7.2 11.5 914Neste Oil 6.55 +.07 14.74 6.30 5.3 4.2 1075Nokia ✠ 3.97 +.05 8.49 3.33 10.1 12 25592OtkmpA 5.12 -.15 14.98 5 4.9 - 1200SampoA 18.05 +.85 23.90 16.85 6.4 8.3 2468StorEnsR 4.24 +.02 8.99 4.04 5.9 4.2 3703UPMKym 8.12 +.05 15.73 7.79 6.8 5.4 2616Wartsila 17.59 +.17 29.09 15.50 5 8.2 582

FRANCE (Sep 26/Euro)Accor 19.75 -.01 36.20 19.21 3.1 1.2 1565ADP 54.50 +.45 67.04 51.67 2.8 15.8 62AirFrn-KLM 5.24 -.1 15.30 5.02 - - 5524AirLiquide ✠ 85.28 +.91 100.65 80.90 2.8 16.3 1126Alcatel 2.21 +.03 4.47 2.05 - 12.3 22140Alstom 23.88 +.27 45.32 22.70 2.6 15.2 2051AXA ✠ 8.98 +.68 16.16 7.88 7.7 3.6 16255BNP Parib ✠ 26.33 +1.01 59.93 22.72 8 4.1 12464Bouygues 24.41 -.49 35.05 20.88 6.6 9.3 2269CapGemini 24.50 +.29 43.39 22.55 4.1 12.3 913Carrefour ✠ 15.76 +.28 35.99 14.66 6.9 - 3797Casino 55.85 +.14 76.55 51.35 5 11.6 195ChristianD ✠ 90.54 -.83 116.30 89 2.4 11.7 144CNP 10.50 +.29 17.19 10.01 7.3 6.3 360CredAgric ✠ 4.59 +.16 12.92 4.01 9.8 6.3 14246Danone ✠ 44.99 +1.32 53.16 41.92 2.9 14.5 3359DassaultSy 52.86 +1.05 62.86 49.07 1 24.2 213EADS ✠ 20.35 -.33 25.39 16.62 1.1 34.5 2642EDF ✠ 20.45 +.56 33.94 17.89 5.6 19.9 1422Eiff age 21.56 +.2 47.85 19.50 5.6 9.1 206Eramet 108.10 -4 278.50 106.35 3.2 9.9 57Essilr 53.45 +.52 57.72 46.61 1.6 24.3 696FranceTele ✠ 11.72 +.22 17.45 11.12 12 10 18653GDF Suez ✠ 21.03 +.84 30.05 18.32 7.1 12.2 7030Gecina 64.90 +.01 105 63.51 6.8 3.3 69Hermes ✠ 247 -1.3 272.50 136.30 0.6 50.1 60JC Decaux 18.11 +.11 25.14 14.63 - 19.7 312Klepierre 19.95 +.26 29.91 18.77 6.8 30.7 528Lafarge 23.60 +.05 48.76 22.29 4.2 9.7 1871Lagardere 17.61 +.06 36.38 16.81 7.4 20.2 379Legrand 23.10 -.04 32.09 22.49 3.8 12.3 910L’Oreal ✠ 72.17 +.95 91.24 68.83 2.5 17.9 1068LVMH ✠ 104.85 -.6 132.65 97.67 2.1 15.2 1554Michelin 44.30 +1.24 68.54 41.20 4 6.1 1419Natlxis 2.13 +.02 4.61 1.91 10.8 3.2 6423PernodRic ✠ 61.79 +1.74 72.78 56.09 2.3 16.5 951Peugeot 15.71 -.4 33.60 15.13 7 2.8 2406PPR ✠ 105.20 -.55 132.20 98.30 3.3 13 262Publicis 31.20 +.4 41.84 29.10 2.2 12 555Renault 24.27 -.38 50.53 23.04 1.2 1.7 2044Safran 23.08 +.47 30.50 19.81 2.2 4.5 1365Sanofi ✠ 48.10 +1.11 56.82 42.85 5.2 14.7 4917Schneider ✠ 37.89 +.3 61.83 35.94 4.2 11.3 3053SocGen ✠ 17.55 +.91 52.70 14.32 10 4.1 10480Sodexo 49.27 +.21 55.96 46.22 2.7 17.5 223StGobn ✠ 27.57 +.2 47.64 26.07 4.2 10.4 3581STMicro 4.86 +.12 9.73 3.96 5.6 5.9 6846SuezEnvir 10.24 -.14 16 10.02 6.4 12.8 2297Technip 57.79 -.2 78.14 53.63 2.5 13.5 1250Thales 24.09 -.24 30.50 23.79 2.1 - 295Total ✠ 31.32 +.47 44.55 29.40 7.3 6.1 16936Unibail ✠ 127.65 +.75 162.95 124.05 21.9 6 500Vallourec 46.55 -1.11 89.58 46.26 2.8 13 1348VeoliaEnv 10.47 +.32 24.30 9.38 11.6 36.1 2936Vinci ✠ 30.90 +.12 45.48 29.49 5.5 8.9 3108Vivendi ✠ 14.80 +.04 22.07 14.10 9.5 24.7 6533

GERMANY (Sep 26/Euro)Adidas 47.19 -.1 57.62 42.41 1.7 15.9 1103Allianz ✠ 65.01 +5.99 108.85 56.16 6.9 6.9 6884AxelSprg 25.63 +.65 41.92 24.50 6.2 10 337BASF ✠ 45.40 +1.13 70.22 42.19 4.8 6.7 5850Bayer ✠ 41.10 +1.68 59.44 35.36 3.6 22.5 6113Beiersdorf 39.67 +.02 49.36 38.26 1.8 27.5 623BMW ✠ 50.80 -1.38 73.85 47.82 2.6 6.6 5307

Celesio 10.30 -.07 20.49 10.09 4.9 14.5 401Commrzbk ✠ 1.76 +.13 5.31 1.47 - 2.1 68986Contintl ✠ 41.99 +.62 77.63 39.61 - 9.2 818Daimler ✠ 32.15 -.26 59.09 30.93 5.8 6.5 8963Deut Bank ✠ 25.12 +2 48.70 20.79 3 10.6 17484Deut Brse 40.50 +.9 62.48 37.65 5.2 15.3 115Deut Post ✠ 9.37 +.24 14.02 8.90 6.9 8.6 6201Deut Tlkm ✠ 8.46 +.24 11.38 7.88 8.3 29.2 17794DeutPstbk 21.02 +.52 25.28 19.47 - 55.3 52E.ON ✠ 15.35 +.79 25.54 12.50 6.5 11.1 14364Fielmann 73.35 +1.3 80.24 60 3.3 24.8 48FraPort 42.83 +2.15 58.83 39 2.9 12.4 244Fresenius 69.85 +1.83 76.65 57.40 1.2 25.8 787FresMedC ✠ 52.10 +1.6 55.77 40.83 1.2 15 1471GEA Grp 17.73 +.29 25.70 16.51 2.3 19.3 1039Hann.Rck 32.20 +2.17 43.49 28.58 7.1 5.9 345HeidCmnt 26.80 +1.05 54 24.71 0.9 12 1142Henkel 39.18 +.57 50.15 36.52 1.8 13.6 809Hochtief 42.86 +.75 76.85 40.79 4.7 48.7 151Infi neon 5.79 -.07 8.32 4.77 1.7 4.6 13151K & S 41.61 +.82 58.85 38.85 2.4 15.3 1569LANXESS 36.08 +.39 64.08 33.40 1.9 6.1 670Linde ✠ 99.02 +1.15 127.80 94.63 2.2 14.9 640Lufthansa 9.61 +.25 17.93 8.93 6.2 4.3 5050MAN 59.03 +.26 100.80 50.78 3.4 6.4 524Merck KG 57.98 +.83 78.94 55.92 2.2 24.6 339Metro ✠ 29.29 +.82 58.71 26.78 4.6 9.3 1125MTU Aero 43.72 +.52 56.60 39.75 2.5 13.5 276MuenchRkv ✠ 85.63 +5.65 126 77.80 7.3 15.3 1950Porsche 32.41 -.61 65.18 29.45 1.5 - 735Puma 238 +1.05 267.10 189 0.8 16.9 61RWE ✠ 25.84 +1.69 55.88 21.22 13.5 4.8 4934Salzgitter 34.63 +.5 65.64 32.43 0.9 14.8 334SAP ✠ 36.40 +.58 46.15 32.88 1.6 22.6 4821Siemens ✠ 66.41 +.88 99.39 62.13 4.1 13.8 4893SMA Solar 44.95 +.68 89.60 39.52 6.7 5.6 106Suedzucker 23.73 -.35 26.18 16.07 2.3 16.7 557ThysenKrp ✠ 18.57 -.32 36.20 17.81 2.4 10.7 4905Volkswgn ✠ 91 -1.97 138.80 75.30 2.4 3.7 184WackerChm 74.58 +2.47 174.30 68.04 4.3 6.6 467

GREECE (Sep 26/Euro)Alpha Bk 1.19 -.11 5.68 1.18 - - 2625BkPiraeus 0.44 -.06 2.21 0.44 - - 2893Coca Cola 13.30 +.2 21.66 12.32 6 13.4 186EFGEbk 0.88 -.06 5.29 0.83 - - 5299HelPetro 5.80 -.12 7.84 5.11 7.8 5.9 49HelTel 3.05 -.07 8.58 3.03 3.9 11.7 871NatBkG 2.58 -.18 8.71 2.56 - - 4792OPAP 7.38 +.18 16.97 7.08 20.9 3.9 764PublPwrC 5.88 +.03 13.10 5.25 13.4 4 245TitanCem 10.99 -.21 18.24 10.83 1.7 15.7 59

HONG KONG (Sep 26/H.K.$)AgricBkCh ✠ 2.64 -.15 4.85 2.54 - 6 284260AIA ✠ 22.30 -.15 29.90 21 0.5 11.7 58396AlumCh ✠ 3.58 +.04 8.30 3.39 0.4 60.7 42498Bk China ✠ 2.50 -.04 4.88 2.44 7.1 4.8 515229Bk of EAsia 26.40 -.15 36.60 25.10 3.7 12 6038BkofComm ✠ 4.65 -.04 8.66 4.57 2.8 5.4 35577BOC HK ✠ 17.84 -.76 29.40 17 6.7 9 36885CathayPcA 12.18xd -.66 24.10 12.02 7.8 4.8 8576ChConstBk ✠ 4.91 -.11 8.47 4.75 5.2 6.4 440728ChinaLife ✠ 17.70 -.28 36.90 17.14 2.7 14.6 55122ChinaMob ✠ 75.60xd +.15 83.80 68.05 4.2 10.2 30482ChinaRes 26.45 -.75 35.50 26 2 21.1 5150ChinaTele 4.97 +.02 5.28 3.84 1.7 20.3 102889ChMerch 19.98 -.12 37.60 19.14 3.4 6.3 6264ChngKong ✠ 86.45 -2.15 137.60 84.10 3.4 4.2 5217ChOvLnd&In 11.42xd +.2 17.86 10.62 2.6 6.6 71184ChResLand 8.90 +.08 17.30 8.16 3.5 7.6 18744ChResPwr 11.48xd -.42 17.30 10.82 2.9 10.9 5097ChRongshng 2.06xd -.18 8.35 2.02 3.1 3.9 16114ChShenEgy ✠ 31.55 -.2 40.20 29 2.9 12.5 26985ChUncHK ✠ 15.64 -.28 17.68 10.24 0.6 77 67029Citic Pac 11.38 -.62 24.60 11.06 3.9 4.1 16023CKI Hld 44 +.75 50 30.50 3.1 14.2 2624CLP ✠ 72.85 +.6 75.20 59.85 3.4 17.2 5965CNOOC ✠ 11.88xd +.04 21.30 11.24 4.2 6.5 97749EspritAsia 7.93 -.3 45.65 7.55 12.5 - 24458HangLung 24.45 -.65 40.50 23.25 2.9 18.3 14110HangSeng ✠ 98.60 -1.4 134.40 97.15 5.2 11.8 3100HendersLd 37.25xd -2.4 61.50 36.50 2.7 4.8 7440HKChGas 17.98xd -.3 19.36 15.45 1.8 24.3 13325HKExch ✠ 118.90xd -5.1 198.60 113.30 3.7 23.9 9592HSBC 59.55xd +.05 91.90 58 5.5 8.9 31900Hutchison ✠ 59.80 -2.35 97.45 56.85 3.3 4.3 18562Ind&CmBkCh ✠ 3.85 -.11 6.77 3.75 5.8 5.8 737115Li & Fung 16 - 25.98 14.14 2.8 14.3 MTR ✠ 23.50 -.35 31.55 22.50 3 10.1 4913NewWorld 7.37 -.31 17.98 7.28 0.3 2.7 13640PetroChina ✠ 9.03xd -.05 12.50 8.59 4.6 9.7 193481PowerAst 62.10 +1.55 64.80 46.90 3.4 15.6 5311SHK Props ✠ 90.30 -3.2 147 88.65 3.7 4.8 11782Sino Land 10.56 -.42 18.90 10.28 4.2 5.1 10495Sinopec ✠ 7.17xd -.08 8.90 6.22 3.9 6.7 118549SwirePac B 16.32xd -.82 25 15.82 8.1 3.2 688SwirePacA ✠ 81.60xa -4.1 133.16 80 8.1 2.6 5413Tencent ✠ 155.90 -3.1 230.80 151.60 0.4 24.6 5160WharfHld ✠ 39.25xd -1.4 61.87 38.70 2.5 2.8 7661Wheelock 23.05xd -1 33.90 22.50 0.6 1.9 475

INDIA (Sep 26/Rupee)BharatHvy ✠ 1.59kxd -10.05 2.7k 1.58k 2 12.9 103BhrtiAirtel ✠ 380.40xd +5.55 444.70 304 0.3 25.9 356CairnInd 269.55 -7.65 372 250 - 5.8 446CoalIndia 346.20xd -20 422.30 287.45 1.1 17.5 924GAIL 409.80xd -11.05 535.85 403 1.8 14.2 161HDFC Bk ✠ 450.15 -7.5 519.50 396 0.7 24.8 1170HsngDevFin ✠ 622.95 -3 764.90 582.25 1.4 24.8 86ICICI Bk ✠ 856.45 +11.8 1.28k 813.55 1.6 14.7 509IndianOil 309.30xd -3.75 456.70 290 3.1 10.6 35Infosys ✠ 2.36k +15.05 3.49k 2.17k 2.5 19.1 144ITC ✠ 189.40 -2.2 211.35 150 1.2 27.8 614JindalS&P 510.20xd -13.65 755.25 451.10 0.5 12.8 167Larsen&T ✠ 1.43k -23.55 2.21k 1.41k 1 22 426M M T C 658.45xd -18.45 1.4k 657 0 - 4NatlThmPr 163.75xd -2.7 222.20 160.10 2.3 14.5 99NMDC 219.20xd -8 304.90 205 1.5 12.8 39OilNatGas ✠ 254.70xd -3.1 359.14 226.95 3.4 11.3 267RelianceIn ✠ 759.20 -11.55 1.19k 713.55 0.8 11.8 1131SBI NewA ✠ 1.95k -4.3 3.52k 1.81k 1.5 12.6 628SteelAuthr 103.90xd -.7 234.10 101.10 2.3 9.4 284Sterlite 117.30 -5.4 195.90 115.05 0.9 6.9 1879TAMO 147 -.4 276.28 137.65 2.7 4.8 1681TataCnslty ✠ 998.50 +7.1 1.25k 902.90 1.5 21.2 360TataSteel 435.20 +2.9 713.80 419.10 2.8 3.3 1074Wipro ✠ 340.35 +1.55 499.90 310.20 1.8 15.6 134

MALAYSIA (Sep 26/Ringgit)AxiataGp 4.57 -.02 5.22 4.36 0.9 26.9 19542CIMB Grp ✠ 6.70xd -.04 9.17 6.56 4.9 13.4 10432Digi.com 29.38 -.6 33.58 21 5.6 19.2 2653Genting 8.54 -.07 11.95 8.37 0.9 11.6 8718Genting Mly 3.25 +.02 3.93 3.01 2.5 12.9 12419IOI Corp. 4.36xd -.15 6.05 4.26 3.9 12.5 5309KL Kpng 19.56 -1.14 22.98 16.96 3 14.6 1180MalayBnkng ✠ 7.51 -.48 9.38 7.35 7.9 12.2 21714Maxis 5.24xd -.03 5.69 5.16 6 17.1 2959MISC 5.65xd -.47 8.88 5.45 4.4 16.5 542PetChem 5.31 -.15 7.61 5.23 3.5 13.3 18525PetGas 13.06 -.24 14.68 10.72 3.8 17.9 770PLUS Exp 4.34 -.03 4.78 4.15 3.4 16.6 11773PPB Grp 15.78xd -.52 19.58 15.16 1.8 19 211Public Bk 11.82 -.62 13.60 11.68 3.8 12.6 6803Public BkF 11.94 -.38 13.60 11.74 3.7 - 2716SimeDarby 8.05 -.05 9.49 7.64 3.7 13.2 6171TelekmMala 3.98 -.02 4.50 3.08 12.9 12.6 17004Tenaga Nsl 4.99 -.03 7.26 4.89 4.1 23.9 3145YTL Power 1.70 -.04 2.76 1.67 5.4 9.3 2976

MEXICO (Sep 26 / 2:30 pm/Peso)AmerMvl ✠ 15.19 +.28 18.21 13.48 0.6 12.7 50742CemxCPO 4.89 +.09 13.08 4.66 19.9 - 81978FEMSA UBD ✠ 87.73 +2.59 91.92 62.65 0.8 22.7 1917GrpElektra 1.03k +77.65 1.24k 430 0.2 35.6 74GrpMexico ✠ 32.45 -.35 51.30 31.40 1.4 9.4 20873Inbursa 22 - 32 21.40 1.4 16.8 1233Telmex L 10.41 -.01 11.26 9.10 5.2 13.4 54888TlvCPO 50.56 +.2 65.42 46.30 0.7 18.7 2062Walmex ✠ 32.10 +.65 40.55 29.35 1.2 28.7 6862

NETHERLANDS (Sep 26/Euro)Aegon 2.84 +.16 5.71 2.59 - 7.3 21462Ahold 8.20 +.06 10.22 7.62 3.5 10.6 4223Akzo N 31.21 +1.1 53.74 29.25 4.5 8.9 1055ArcelorMit ✠ 11.57 +.1 28.55 10.47 4.8 7.5 14998ASML Hld 26.37 +.37 32.95 20.79 1.5 7.8 2807Boskalis 22.13 +.46 38.46 20.67 5.4 7.4 272Corio 32.95 +.54 54.25 31.10 8 7 326DSM 30.98 +.11 47.42 29.84 4.5 6.6 986Fugro 36.75 +.76 63.68 34.61 4.1 10.7 711Heineken ✠ 33.42 +.47 43.29 30.40 2.4 14.9 736ING ✠ 5 +.43 9.50 4.21 - 5.9 48273KPN ✠ 9.26 +.09 12.30 8.95 8.7 7.4 6347Philips ✠ 13.25 +.79 25.45 12.01 5.3 - 7616PostNL 3.22 +.01 8.17 3.11 17.7 0.6 1176Randstad 23.18 +.43 43.10 19.59 5.1 12.4 864ReedElsvr 8.19 +.27 10.33 7.38 5 14.6 2903Robeco 18.88 -.07 24.65 18.30 3.2 46 68RylDShlA 22.52 -.24 26.74 20.12 5.3 9.2 8928Unilever ✠ 23.12 +.27 24.08 20.82 3.7 16.4 7484WoltKluw 12.20 +.45 17.93 11.50 5.5 21.4 897

NEW ZEALAND (Sep 26/NZ $)AucklndAir 2.26 - 2.34 2.04 5.3 29.5 629ContactE 5.38xd -.13 6.04 4.66 5.9 22.2 157FletchrBld 7.39 +.1 9.53 7.05 5.8 16.4 991Telc.of NZ 2.50 -.14 2.77 1.94 13.1 29.3 11005

NORWAY (Sep 26/Kroner)AkerSol 57 +.2 107.65 54.20 4.8 3.4 1786DnBNOR ✠ 58.15 +2.1 90.65 52.65 6.9 6.7 9897NorskHyd 26.37 -.63 48.59 25.50 2.8 6.8 11481Orkla 44.84 -.26 58.80 40.60 5.6 9 3498Roy.Carib. 126.70 -5.6 293.10 121.10 1.8 8.8 1052Seadrill 167.70 -2.7 215.57 137.60 9.8 6.7 2723StatoilHyd ✠ 119.50 -2.6 161.70 108.10 5.2 5.7 9823Subsea 7 108.40 -1.6 155.90 99.35 - 13.5 2752Telenor ✠ 86.45 +1 98.55 78.80 4.4 12.7 3423YaraIntl 243.80 +1.6 352.50 224.30 2.3 8.2 2733

POLAND (Sep 26/Zloty)Bank PKO ✠ 30.10 +.2 47.35 27.95 6.6 10.6 3802BkPekao 131 +6.8 197.20 115.10 5.2 12.9 563BRE Bank 220.90 +10.9 357.90 203.30 - 9.2 53ING Bank 715 +30 922 617.50 2.1 11.2 13KGHM 130 -5 200.30 112.90 11.5 3.9 2185PGNIG 4xd -.02 4.65 3.25 3 9.5 16893PKN Orlen 33 +.7 58.85 30.33 - 3.7 1786PZU 337.90 -1.9 410 312 7.7 10.3 358Telek.Pol 17 +.3 19.19 14.30 8.8 33.3 1495

PORTUGAL (Sep 26/Euro)B.EspSanto 1.89 + 3.67 1.72 6.7 5.7 2502BCPort 0.18 + 0.63 0.17 - 6.1 46545BncoBPI 0.61 + 1.49 0.58 - 3.6 1073BRISA 2.42 +.02 5.68 2.25 12.8 1.8 1085Cimpor 4.81 -.03 5.55 4.27 4.3 11.7 243EDP 2.26 -.04 2.92 1.98 7.5 7.3 9497GalpEnerg 13.62 +.24 16.97 11.60 1.5 22.3 1240JeronimoM 11.41 -.15 14.83 9.52 1.8 22.4 1002PortTlcm 5.48 +.17 9.13 5.17 11.9 0.9 2291Sonae 0.50 0.86 0.47 6.6 5.5 2431

RUSSIA (Sep 26/Rouble)Bank VTB ✠ 0.07 + 0.11 0.06 0.8 8.2 40880690GazProm ✠ 154.50 +3.25 247.47 145.50 2.5 3.2 97070GMK Noril ✠ 6.39k +28 7.98k 4.97k 2.8 11.1 680Gzprm neft ✠ 112.63 +1.02 158 107.50 3.9 4.5 715Lukoil ✠ 1.58k +38.5 2.09k 1.5k 3.7 3.8 4122MTS 188 +4.5 264.50 175.05 7.7 9.6 1684NLMK ✠ 66.71xd +.2 151.20 62 3.9 8.7 8607Novatek ✠ 359.01xd +12.48 427.98 226.68 1.4 19.6 2208Rosneft ✠ 187.80 +3.8 276.20 176.30 1.5 5.3 21223RusHydro 1.06 -.02 1.72 1.02 0.8 26.2 1101693SbankR ✠ 69.40 -.59 110.95 66.02 1.3 5.1 451641Severstal 336.90xd -5.6 598.58 315 3.2 10.6 4883Surgnfgz ✠ 25.45 +1.25 36.18 20.41 2 7.5 57663

SINGAPORE (Sep 26/S$)Capitalnd 2.48 -.05 4.23 2.35 2.4 9 17304DBS ✠ 11.79xd -.28 15.73 11.73 4.7 9.3 6212Jard Math ✠ 45.20xd -.39 59 42.32 2.6 3.9 335Jard Str ✠ 25.03xd -.17 34.30 24.80 0.9 3.2 727Keppel 8.05 -.3 12.18 8 5 8.5 10313

OCBC ✠ 8.04xd -.13 10.36 7.93 3.7 - 8074SIA Ltd 11.09 -.15 15.63 10.30 12.5 15 2235Sing Tech 2.95 - 3.50 2.64 4.9 17.4 2705SingTel ✠ 3.09 +.03 3.31 2.75 8.3 13 30394UOB ✠ 16.85 -.38 21 16.79 4.1 10.3 5148WilmarInt ✠ 5.06 -.03 6.93 4.92 1 19.5 8821

SOUTH AFRICA (Sep 26/Rand)Absa 133.01 -.52 144.94 123.19 3.9 10.8 1048AngGold 349.50 -11.95 382.50 273.33 0.5 23.6 1710Anglo 281.73 -2.77 401.33 265 2.2 40.2 4854AngloPlat ✠ 549.99 -35.54 762 510.50 2.2 14.2 649ArclrMttal 57.96 +1.18 93.60 55 0.9 - 661Firstrand 19.65 -.26 21.20 17.28 4.1 8.3 11030GoldFields 128.40 -6.51 145.43 95.05 1.3 40.5 2562Harmony 95.68 -6.26 108.30 74 0.6 66.8 2174Implats 161.80 -4.28 243.65 152.50 3.5 14.6 3414Kumba Iron ✠ 437.50 -1.87 532.29 341.98 9.9 8.2 538MTN ✠ 130.61 -1.06 147.99 117 4.8 15.4 6646Naspers N ✠ 342.95 -3.7 408.99 319.03 0.8 24.4 1840NedbankGrp 131.01 -1.48 154.45 123.60 4.1 10.8 499OldMut 13.20 +.01 15.97 12.10 4.7 - 11781SAB Mllr 261.83 -.59 272 216.74 2.8 - 2465Sanlam 26.09 -.19 28.35 24.14 4.4 9.3 3362Sasol ✠ 324.05 -12.72 403.55 300.50 4 9.8 1892Stanbank ✠ 92.46 -1.21 111.99 87.75 4.2 11.6 4127Telkom 32.27 -.21 39.20 32.01 4.5 7.8 582Vodacom 86.71 -1.21 93.50 64.99 5.3 15.5 1055

SOUTH KOREA prices in ’000s(Sep 26/Won)Hynix Semi 19.95 -.3 37.40 15.50 0.7 6.4 14311HyundaiHvy ✠ 237 -29 554 235.50 2.9 3.3 749HyundaiMot ✠ 196 -1 257 151.50 0.7 8.1 1035HyundEng 54.60 -2.7 92.90 53.50 1.2 13.1 980HyundMobis ✠ 317 +1.5 416.50 238 0.5 10.8 328HyundStl 82.10 -5.4 149.50 80.90 0.6 5.8 908IndBkKor 12.10 -.45 20.95 12.05 3.3 4.8 1598KB Financial 34.90 +.3 62.10 34.10 0.3 9.7 3550Kia Motors ✠ 67 -.7 84.60 36.10 0.7 7.5 3493Korea T&G 71.50 -3.8 77.50 53.40 4.1 11.4 985KoreaEP 20.45 -.05 32.90 19.60 - - 1129KoreaExch 6.81 -.17 14.25 6.70 35.7 2.4 1289KT Corp 35.30 +.1 49.25 33.85 6.6 6 1343LG Chem ✠ 299.50 -17 583 293 1.3 9.7 628LG Corp 51.90 -.1 104 50.10 1.9 7.7 743LG Display 17.50 -.85 42.50 17.30 2.8 - 3261LG Elect 58.40 +.2 126.50 53.60 0.3 - 1107LotteShop 373 +6 540 361.50 0.4 10.1 94NHN 212.50 -3 229.50 168.50 - 18.8 275Posco ✠ 358.50 -3.5 544 352 2.7 6.7 293ShinhanFin ✠ 37.20 +1.05 54.20 35.80 2 6.6 2098Shinsegae 281 +8 407.50 143.07 1.7 1.8 53SK Innov 133.50 -11 258.50 132 1.5 7.3 964SK Telecom 155.50 +8 181 126.50 5.9 7.1 362SmsungCT 64.30 -1.1 92.50 56.70 0.8 30.4 1213SmsungEl ✠ 775 +17 1.01k 672 0.7 8.4 475SmsungEM 67.30 +1.3 139 59.20 1.4 13.3 1794SmsungEPf 513 - 692 460 1.1 - 36SmsungFre 212 +4 256 183.50 1.7 12.3 135SmsungSDI 100 -5 211 99.90 1.6 10.7 624WooriFin 8.50 -.15 16.05 8.47 2.9 6.4 3530

SPAIN (Sep 26/Euro)Abertis 11.14 +.31 14.27 9.66 11.7 12.5 2257Acciona 61.62 +2.08 80.89 49.70 5 11.1 339Acerinox 8.32 +.05 14.19 8.02 5.4 14.4 1053ACS 25.43 +.48 38.70 23.96 8.1 5.3 837Banesto 4.48 +.02 7.50 4.19 7.1 8.4 252Bankinter 3.96 +.28 5.43 3.41 3.8 12.9 1982BanPoplr 3.32 +.04 4.78 3.01 12.2 8.3 7051BBVArg ✠ 5.89 +.22 9.93 5.03 6.2 5.7 50737BcoSabdll 2.61 +.02 3.81 2.24 4.2 10.7 3962BcoSantdr ✠ 5.92 +.19 9.82 5.15 12.2 7 67818BcoValen 0.73 +.01 4.14 0.68 10.4 9.6 544CaixaBnk ✠ 3.24 +.05 5.66 3.05 5.6 8.7 2749CEPSA 27.98 - 28.39 15.80 3.4 11.8 CorFinAlba 30.61 +1.05 44.69 28.93 3.3 3.2 42DIA 2.77 -.02 3.85 2.36 - - 17717EbroFood 12.45 -.04 17.21 11.81 7.5 5.2 533Enagas 12.70 +.06 16.99 12.46 6.6 8.9 2214Endesa 16.54 +.37 24.36 15.75 6.1 5.3 356FCC 15.97 +.82 24.18 14.60 9 6.1 843GAMESA 3.13 + 7.52 2.96 0.2 13.5 4541GasNatur ✠ 12.12 +.18 15 10.07 6.5 9.5 2495Grifols 13.50 -.02 15.80 8.86 - 42.2 1228GrpFerrov 8.17 +.17 9.54 6.82 5.1 1.9 3714IAG 1.69 +.07 3.42 1.58 - 6 5544Iberdrola ✠ 4.88 +.14 6.50 4.29 3.5 9.1 35608IberdrRen 1.79 - 1.91 1.38 68.4 20.1 21234Inditex ✠ 65.20 +1.69 66.37 50.92 2.5 22.3 3831IndraSis 10.31 +.12 15.98 9.89 6.6 8.7 1130Mapfre 2.27 +.04 2.89 1.92 6.6 7 3187MedsetEsp 4.10 +.07 10.11 3.85 8.5 13.7 2294OHL 17.30 +.24 28 15.94 2.8 8.3 462RedElectCp 32.37 +.32 43.90 30.78 5.8 10.3 593Repsol ✠ 18.93 +.25 24.90 17.31 5.5 4.9 9379TechReun 23.67 -.1 48.75 22.63 5.7 4.9 466Telefonica ✠ 13.83 +.36 19.69 12.50 11 6.5 33225ZardoyaO 9.44 -.06 12.55 8.56 5.6 17 318

SWEDEN (Sep 26/Kroner)AlfaLaval 107.70 -.2 147.70 104.20 2.8 14.3 2085AssaAbloy 138.80 +1.8 200.30 128.60 2.9 12 1607AstraZen 296.90 +2.8 359.20 260.70 6.9 8 1819AtlasCpcoA ✠ 123.20 -.1 173.50 118.20 3.2 13 5903ElctxB 101.90 +1.2 196.20 93.15 6.4 9.4 4598EricssonB ✠ 67.50 +2.1 96.65 63.15 3.3 14.2 13425H & M ✠ 193.60 +4.3 260.50 178.80 4.9 19.3 4737IndVardenA 74.80 +.5 136.50 70.80 5.3 4.5 280InvestorB 117.40 +1.7 158.90 110.20 4.3 2.7 2330Kinnevik 123.50 -1.1 159.80 113.10 3.6 4.6 928NordeaBk ✠ 52.05 +1.45 81.60 48.15 5.2 7.8 12528Sandvik 78.40 -.7 136.50 71.50 3.8 11.9 6457ScaniaA 93.40 +1.05 162 88.10 5.4 - 18ScaniaB 94.40 +.8 164.80 89.35 5.3 7.4 1962SEB 35.80 +.5 62 30.72 4.2 7.8 13453SkanskaB 92.50 +.9 130.88 84.35 6.2 4.8 1576SKF B 130.50 -.5 197.90 125.40 3.8 9.9 2716SSAB A 49.73 -1.17 117.10 46.71 4 12.3 3555SvenCellB 81.20 +.3 114.90 76.45 4.9 9.9 1916SvenskaHn ✠ 166 +6 229 147.40 5.4 8.9 3963Swedbank ✠ 71.65 +2.15 119.60 65.55 2.9 7.1 8670SwedMatch 222 +5.5 240.30 174.40 2.5 19.9 975Tele2B 124.90 -.1 140.70 110.20 21.6 8.7 2642TeliaSonra ✠ 42.90 -.22 56.59 40.60 6.4 9.3 11818VolvoA 66.30 -1.4 120.30 64.80 3.8 - 366VolvoB ✠ 65.90 -.95 122 63.95 3.8 8.8 14108

SWITZERLAND (Sep 26/Frs)ABB Ltd ✠ 15.25 +.09 23.97 14.40 7.3 13.7 11548Actelion 29.64 +.05 57.95 28.16 2.7 - 660Adecco 35.67 +1.11 67 31.98 3.1 11.9 1093Baloise 63.50 +1.65 103.60 60.05 7.1 7.1 212CredSuisse ✠ 22.47 +1.19 45.42 19.53 5.8 8.9 9861GAM Hldgs 11.35 +.35 18.85 9.23 4.4 - 766Givaudan 712.50 +9 1.06k 684.50 3 25.1 42Holcim ✠ 45.79 +1.57 76.90 42.11 3.3 12.1 1454JulBaerGp 29.11 +1.01 45.17 26.36 2.1 19 847Kuhn&Nag 101 -.3 137.60 90.90 2.7 19.1 225Logitech 7.01 +.04 21.03 5.80 - 18.9 1575Lonza Grp 54.25 +1.9 90.45 44.30 4 11.3 309Nestle ✠ 49.02 +.52 56.90 43.50 3.8 4.9 9636NobelBiocr 8.32 +.31 20.78 7.76 4.2 52 1027Novartis ✠ 49.12 +.62 58.35 38.91 4.5 13.8 6968Pargesa 60.85 +2.15 90.95 56.30 4.5 11.9 66Richemont ✠ 44.70 +.04 58 36.46 1 17.8 2269Roche ✠ 140.10 +3.5 151.20 115.10 4.7 14.3 1832Roche Br 145.30 +2.7 161.40 120.30 4.5 - 12Schindler 96.60 +.1 116.83 79.25 2.1 16.6 26SchndlerPC 95.25 +1.2 117.23 78.10 2.1 - 149SGS SA 1.39k +29 1.72k 1.26k 4.7 18.8 28Sonova 81.75 +3.25 136.10 57.30 1.5 23.6 522SwatchGpI 344.20 +.9 443.70 314.10 1.5 17.4 204SwatchGpN ✠ 61.45 +.45 79.50 54.30 1.6 - 266Swiss Re ✠ 39.78 +1.83 60.75 34.70 6.9 - 61Swisscom ✠ 363.50 +6.6 433.50 323.10 3.3 10 118SwissLife 93.80 +3.55 166.20 84.10 7.4 4.4 164Syngent ✠ 237.50 +2.9 324.30 211.10 2.9 17 288Synthes ✠ 145.50 +1.1 155.70 110.10 1.2 21.9 252Transocn 46.55 -.37 79.95 36.52 3.1 - 476UBS ✠ 10.63 +.51 19.13 9.34 - 6.6 30326ZurichFin ✠ 177.40 +8.4 275 144.30 9.6 9.1 1214

TAIWAN (Sep 26/T$)Acer 33.75 -1.1 99.40 27.30 10.7 35.2 51Au Optrncs 12.05 -.7 33.35 11.90 3.3 - 77CathayFin 34.20 +.25 54.31 33.50 1.7 29 26ChimeiInn 12.20 -.3 44 10.95 - - 33ChinaSteel 29.30 - 34.10 27.40 6.4 14 52Chinatst Fin 16.25xa -.35 25.28 16.20 4.1 10.4 29ChnghwTl ✠ 98.50 +.8 111 84.13 8 16.1 15CompalElc 29.50 -.7 40.80 25.60 9.1 8.6 20DeltaElc 76 -1.1 143.50 68.80 6.7 13.3 5FormChm&F ✠ 74.60 -.4 119 73.80 9.9 8 9FormPlastic ✠ 77.20 -.1 117 75 8.7 9.1 9FubonFnH 30.05 -2.05 46.48 30.05 3.1 11.1 64HonHaiPrc ✠ 68.60 -.4 115 61.50 1.3 10.8 34HTC ✠ 638 -41 1.24k 588.57 5.4 9.3 10MediaTek 306 -18 463 221 6.4 19.2 19Mega Fin 19 -1.1 28.97 19 4.6 12.7 52NanYaPlast ✠ 65.50 +.7 89 62 7.1 12.7 28Quanta Cmp 50 +1.9 73 47.05 7.1 10 18TaiwanMob 74.90 +.9 85.10 63.50 6.8 16.5 9TaiwanPet ✠ 81 +1 112 76.60 4.8 16.5 2TaiwanSem ✠ 67.20 -.3 78.30 60.10 4.4 10.9 62Utd Micro 10.85 +.1 18.30 10.15 10.1 5.9 35

THAILAND (Sep 26/Baht)Adv Info 115.50 -4.5 126.50 77 12 14.8 128076Bangkk Bk 139 -6.5 184 134 3.9 10.3 158125PTT ✠ 267 -23 387 254 3.7 7.1 179605PTT Exp 145 -6 199.50 135 3.5 11.2 87836SiamCem 271 -13 387 260 4.9 8.1 92035SiamComBk 103.50 -4 128.50 92 2.9 10.4 154727

TURKEY (Sep 26/Tk Lira)Akbank 6.72 -.06 9.90 5.54 2.1 10.3 14831KOC Hold. 6.60 -.02 8.24 5.40 3.5 7.5 4624Sabanci 6.06 -.02 8.30 5.12 2.5 6.8 15238TGaBan ✠ 6.84 +.04 9.44 5.66 2 8.8 102202Trk.Isbank 4.50 +.09 7 3.83 3.4 8.3 51873TrkHalkBk 11.95 +.25 16.40 9.15 168.6 8.2 8305Turkcell 8.80 +.18 11.20 7.18 - 15.7 2159TurkTelek 7.66 -.02 9.38 6.15 8.4 11.1 1845YapiKred 3.64 +.01 5.92 2.87 - 7.3 26050

INDONESIA prices in ’000s(Sep 26/Rupiah)AdaroEgy 1.52 -.13 2.90 1.43 1.9 14 194910Astra Int ✠ 57 -1.85 75.95 45.25 2.7 14 5829Bk Negara 3.43 - 5.10 2.98 1.9 10.2 76050BkCentAsia ✠ 7.35 -.15 8.85 5.30 1.5 19.3 17743BkMandiri ✠ 5.50 -.1 8.15 5.10 2.4 10.7 89013BkRakyat 5.35 -.25 7.25 4.53 1.7 9.2 84942Gudang Grm 49 -1 61.50 33.30 1.7 20.2 1485Telkom 7.20 - 9.80 6.60 4.3 12.4 53398Unilever 15.20 -.15 19.20 13.80 2.8 21.3 2554

IRELAND (Sep 26/Euro)Aer Lingus 0.64 +.02 1.18 0.52 - 6.4 270BkofIrelnd 0.07 - 0.69 0.07 - - 23259CRH 11xd +.33 17.40 10.28 5.7 15.9 1322Elan Crp 7.40 +.35 8.90 3.77 - - 288GraftonGrp 2.62xd +.03 3.88 2.49 2.8 9.7 236Ind News 0.25 +.01 0.66 0.20 - 12.5 1752Irish Lf 0.03 -.01 1.65 0.02 - - 239Kerry Gp 25.80 +.31 30.45 22.67 1.2 13.4 1007Ryanair 3.25 +.05 4.23 2.76 10.3 11.6 1399

ITALY (Sep 26/Euro)A2A 0.89 +.03 1.25 0.81 6.7 48.4 5950Acea 5.27 +.08 8.57 4.96 2.8 50.1 142Atlantia 10.02 +.62 16.21 9.13 7.1 7.7 2574Autogrill 7.32 +.01 10.99 7.16 3.3 15.7 1187BcaCarige 1.38 +.05 1.82 1.20 5.1 12.5 1353BcaMilano 1.43 +.05 3.69 1.21 7 7.6 7174BcaPEmilR 8 +.2 10 5.82 2.3 11 673BcoPoplre 1.15 +.03 3.46 1 2.6 - 16898BcPSondrio 5.40 +.06 6.90 4.82 3.9 15.3 314Bulgari 12.23 +.01 12.47 6.37 1 67.6 467BuzziUnicm 5.84 +.18 11.01 5.45 - - 867Campari 5.56 +.04 5.95 4.26 1.1 19.8 1524CredEmil 2.84 +.16 5.57 2.62 3.5 12.1 258Edison 0.87 +.01 0.96 0.72 4.9 - 5424

ENEL ✠ 3.02 +.11 4.86 2.81 9.3 6.3 84868ENI ✠ 12.54 +.17 18.66 11.83 8.1 7.5 57130ERG 8.09 +.1 10.74 7.60 4.9 15.1 234Exor 14.40 +.28 26.09 13.34 2.2 5.7 464Fiat 4 + 8.18 3.44 2.2 - 48878Fiat Ind 5.86 -.1 10.99 5.31 - 11.2 8870Finmecnca 5.36 +.14 10.10 4.35 7.7 4.1 3516Generali ✠ 11.46 +.61 17.05 10.34 3.9 10.5 11720IntSanPSvg 0.92 +.07 2.28 0.75 9.9 4.4 16669IntSPaolo ✠ 1.10 +.08 2.52 0.85 7.3 6.2 351934Italcementi 4.39 +.14 7.82 4.16 2.7 7.6 410Lottomatica 11.54 +.3 15.19 8.63 - - 788Luxottca 20.07 +.59 23.70 17.88 2.2 21.3 893Meddiolan. 2.61 +.14 4.09 2.16 5.9 7.4 912Mediaset 2.24 +.1 5.46 2.04 15.6 9.2 7411Mediobnca 5.73 +.16 8.12 5.17 3 13.1 2675MontePsS 0.40 +.02 1.09 0.35 5.2 2.7 47567Parmalat 1.67 +.05 2.73 1.45 2.2 13.7 1684Pirelli&C 5.16 - 7.75 4.80 3.2 7 4684Prysmian 9.91 +.14 16.25 9.38 1.7 - 1870Saipem ✠ 26.09 -.37 38.77 25.21 2.4 12.7 2996Saras 0.97 -.03 2.09 0.96 - 14.7 3375SnamRG ✠ 3.42 +.07 4.31 3.11 7 10.2 7492TelcmItalR 0.69 +.01 1.03 0.65 10 8.7 21980TelecmItal ✠ 0.78 +.02 1.16 0.70 7.5 4.9 102211TERNA 2.66 +.09 3.49 2.36 7.9 7.5 11629TODS 68.35 +.45 98.45 65.70 2.9 17 244UBI Banca 2.63 +.15 7.43 2.19 5.3 6.4 6132UniCred ✠ 0.72 +.04 2.03 0.64 4.2 6.7 544104

JAPAN prices in ’000s(Sep 26/Yen)Aeon 0.99 -.03 1.09 0.82 2.1 15.6 5577Ajinomoto 0.89 - 1.01 0.73 1.8 15.5 3459AozoraBk 0.16 0.20 0.16 1.2 8.2 2538Asahi Glass 0.70 -.04 1.16 0.69 3.8 7.2 8625AstellasPh 2.88 3.35 2.70 4.3 16 2576Bridgestne 1.62 -.07 2 1.41 1.2 11.5 5264Canon ✠ 3.36 +.01 4.34 3.27 3.7 16.5 5314ChubuElec 1.47 -.01 2.22 1.06 4.1 - 2147Chugai Ph 1.30 -.01 1.63 1.24 3.3 17.8 1476CntJpRwy 672 +4 748 575 1.3 11.3 9

DaikinInd 2.10 -.02 3.23 2.06 1.7 14.3 2362DaiNpPrnt 0.76 -.01 1.17 0.75 4.2 28.2 2970DaiSankyo 1.57 1.88 1.43 3.8 22.3 2349DaiwaSec 0.28 -.01 0.47 0.27 2.2 - 11784Denso ✠ 2.40 -.04 3.20 2.22 1.9 20.2 2186EastJpRwy ✠ 4.46 -.15 5.90 3.92 2.4 15.8 2282Eisai 3.18 -.04 3.30 2.74 4.7 13.6 2261Fanuc ✠ 10.44 -.39 15.42 10.09 1.7 16.9 2253FastRetail 13.88 +.11 15.08 8.80 1.5 24.5 768FujiFilmH 1.75 -.04 3.13 1.74 1.7 10.5 2525Fujtsu 0.34 -.02 0.61 0.34 3 11.6 12567Hitachi ✠ 0.37 -.01 0.52 0.33 2.1 7.6 50825Honda Mt ✠ 2.25 -.03 3.75 2.23 2.5 14.5 7299Hoya 1.76 -.02 2.12 1.55 3.7 12.5 2349Inpex ✠ 468 -14.5 674 391 1.3 12.2 14Itochu 0.74 -.06 0.93 0.67 2.4 4.5 17783JapanTob ✠ 364 -3.5 371.50 243.90 1.9 22.6 38JFE 1.59 -.14 2.93 1.57 2.2 13.6 5161JX Hldgs 0.42 -.03 0.61 0.40 3.6 5.3 11399KansaiEP 1.34 -.01 2.20 1.12 4.4 - 2645Kao Corp 2.13 +.05 2.30 1.83 2.7 19.4 3820KDDI Cp ✠ 574 -50 668 387.50 2.4 9.8 54Keyence 20.30 -.09 24.16 17.95 0.3 19.7 245KirinHldgs 0.97 -.01 1.21 0.95 2.7 17 3631Komatsu ✠ 1.64 -.06 2.93 1.63 2.3 8.5 9197Kubota 0.62 -.01 0.92 0.56 2.3 13.2 8346Kyocera ✠ 6.37 -.17 9.04 6.33 2 10.9 1219Kyushu EP 1.26 -.02 2 1.02 4.7 - 1757Marubeni 0.44 -.03 0.68 0.44 2.7 4.2 18403MitsubElec ✠ 0.65 -.02 1.02 0.64 1.8 10 10352MitsubEst ✠ 1.17 -.02 1.73 1.11 1 28.4 5107MitsubHvy 0.31 -.01 0.40 0.26 1.3 26.3 28063Mitsubishi ✠ 1.57 -.14 2.42 1.56 4.1 5.4 20874MitsubTk ✠ 0.33 0.48 0.32 3.6 5.8 45303Mitsui ✠ 1.17 -.07 1.56 1.11 4 4.5 17545MitsuiFud 1.11 -.05 1.80 1.11 2 20 6598MitsuiSmIns 1.62 -.01 2.30 1.58 3.3 15.3 2018Mizuho ✠ 0.11 0.18 0.11 5.4 6.3 100139Murata Mfg 4.45 -.12 6.35 4.07 2.2 17.3 46NEC 0.15 -.01 0.26 0.15 - 25.9 16000Nintendo 11.81 -.14 26.79 10.78 3.8 - 32NipponStl ✠ 0.22 -.01 0.33 0.19 1.4 12.5 24446Nissan Mt ✠ 0.62 -.02 0.89 0.61 1.6 9.7 25002Nitto Denko 3.14 -.12 5.21 2.80 2.8 10.7 2126

NKSJ 0.41 - 0.67 0.40 4.9 42.4 7895Nomura 0.28 -.01 0.56 0.27 2.9 21.1 34579NTT ✠ 3.63 -.07 4.17 3.22 3.3 9.5 4051NTT Data 234.90 -.3 317.50 213.40 2.5 16.9 12NTTDCMo ✠ 143.50 -.7 159 128 3.6 12.3 131Orix 5.55 -.28 9.62 5.48 1.4 7.5 2182Panasonic ✠ 0.71 -.03 1.26 0.70 1.4 - 12321Resona 0.34 -.01 0.81 0.32 3.5 5.8 10904Ricoh 0.62 -.03 1.28 0.62 5.3 21.1 7500Rohm 3.85 -.01 5.94 3.63 3.3 21.3 13Secom 3.58 +.01 4.23 3.43 2.5 14.6 1299SekisuiHse 0.70xd -.01 0.94 0.64 2.5 13.4 4187Seven & I ✠ 2.16 + 2.33 1.76 2.6 15.9 3467Sharp 0.58 -.03 0.96 0.57 2.9 - 7869ShnEtsuCh ✠ 3.75 +.03 4.90 3.40 2.6 15.9 2443SMC Cp 10.91 -.18 15.09 9.99 1 12.2 490Softbank ✠ 2.17 -.12 3.52 2.16 0.2 7 25137Sony ✠ 1.42 -.06 3.11 1.42 1.7 28.6 8316SonyFinH 1.04 -.01 1.24 1.02 1.9 15.6 1720SumitChm 0.29 -.01 0.47 0.29 3.1 20.1 12783SumitoEle 0.92 -.05 1.29 0.90 2.1 11 4331SumitomMI 0.16 -.01 0.24 0.13 2.2 15.8 25351Sumitomo 0.97 -.04 1.30 0.93 3.7 5 11697SumitomoF ✠ 2.08 -.01 3.23 2.06 4.8 7.3 8545SumitonMit 0.43 - 0.54 0.36 2.5 8 Suzuki Mt 1.63 -.01 2.14 1.47 0.8 18.3 2397T&D Hld 1.37 -.03 2.58 1.36 3.3 12.9 1881Takeda Ph ✠ 3.68 -.03 4.12 3.55 4.8 11.5 3711TDK 2.74 -.15 6.14 2.73 2.9 7.1 2681Terumo 3.83 +.07 4.75 3.71 0.9 21 1307Tohoku EP 1.03 1.95 0.76 4.8 - 1711TokioElPw 0.26 -.04 2.34 0.15 11.5 - 67897TokioMrne ✠ 1.84 -.04 2.88 1.82 2.7 10.2 3177Tokyo Elcn 3.59 -.19 5.78 3.34 3.2 19 2508TokyoGas 0.36 +.01 0.39 0.30 2.5 25 22195Toshiba ✠ 0.30 -.01 0.55 0.29 1.6 9.5 35418Toyota ✠ 2.58 -.05 3.96 2.56 1.9 - 9581Toyota Ind 2.14 -.04 2.94 2.02 2.3 14 519WstJpnRwy 3.33 -.07 3.42 2.70 2.4 21.8 1589Yahoo Jpn ✠ 22.27 -.48 34.60 21.91 1.4 12.8 165YokohaBk 0.37 - 0.46 0.34 2.7 10.4 5612

Monday stock close Day’s traded m’s price changeIntel 49.3 22.02 -0.14Cisco Systems 38.4 15.86 +0.25Microsoft 37.0 25.16 +0.10Oracle Corp 28.5 29.35 +0.45News Corp 27.3 16.13 +0.02Micron Tech 24.9 6.45 -0.21Apple 24.3 399.31 -4.99NVIDIA 20.3 13.58 -0.21Yahoo 19.8 14.63 -0.08AppliedMat 15.7 10.28 -0.31

BIGGEST MOVERSMonday Close Day’s Day’s price change chng%UpsBerkHB 71.35 4.98 +7.50SherWil 75.81 4.43 +6.21Macy’s 27.19 1.57 +6.13JC Penney 26.99 1.46 +5.72DownsMEMC Elec Mat 5.74 -0.37 -6.06Clorox 66.20 -3.20 -4.61Wynn Resorts 133.04 -5.64 -4.06Micron Tech 6.45 -0.21 -3.08Based on the constituents of the S&P500 and the Nasdaq 100 index

Monday stock close Day’s traded m’s price changeLlydsBkg 202.6 35.23 +1.09RBS 102.9 23.57 +0.74Barclays 99.5 156.00 +10.00Vodafone 89.9 162.50 +0.90BP 33.7 384.70 -0.35HSBC 27.3 499.90 +1.90Leg&Gen 25.7 97.45 +5.85Dixons Ret 25.0 11.49 +0.51Tesco 21.3 371.40 +6.20RSA Ins 20.0 109.90 +2.90

BIGGEST MOVERSMonday Close Day’s Day’s price change chng%UpsBarclays 156.00 10 +6.85Heritage 237.20 14.50 +6.51Leg&Gen 97.45 5.85 +6.39Aviva 295.00 17.70 +6.38DownsABG 500.00 -69.50 -12.20AquarsPl 177.00 -14.40 -7.52Fresnillo 1,524.00 -112 -6.85PremFds 10.26 -0.60 -5.52Based on the constituents of the FTSE 350 index

Monday Turnover close Day’s Euro/m’s price changeENI 716.4 12.54 +0.17Total 530.3 31.32 +0.47Telefonica 459.5 13.83 +0.36Allianz SE 447.5 65.01 +5.99Deutsche Bank 439.1 25.12 +2.00BcoSantdr 401.2 5.92 +0.19Unicredito SpA 392.8 0.72 +0.04IntSanPaolo 385.4 1.10 +0.08BNP Paribas 328.1 26.33 +1.01Siemens AG 324.9 66.41 +0.88

BIGGEST MOVERSMonday Close Day’s Day’s price change chng%UpsErste Bank 18.96 +1.80 +10.46Raiff eisen 21.16 +1.98 +10.29Allianz SE 65.01 +5.99 +10.15ING Group CVA 5.00 +0.43 +9.32DownsNatl BankGR 2.58 -0.18 -6.52Eramet 108.10 -4.00 -3.57BMW 50.80 -1.38 -2.64Peugeot 15.71 -0.40 -2.45Based on the constituents of the FTSEurofi rst 300 Eurozone index

Monday stock close Day’s traded m’s price changeMizuho Fin 100.1 111 -1Tepco 67.9 259 -40Hitachi 50.8 371 -12Mitsub UFJ FG 45.3 329 -3Toshiba 35.4 303 -13NomuraHld 34.6 276 -5MitsubHeavy 28.1 313 -10TAIHEIYO CEMENT 26.2 135 -2Mazda Motor 26.0 142 -3Sumitomo Metal 25.4 158 -7

BIGGEST MOVERSMonday Close Day’s Day’s price change chng%UpsKao 2134 53 +2.55Toho Tokyo 1351 28 +2.12Olympus 2272 46 +2.07Tokyo Gas 357 7 +2.00DownsTepco 259 -40 -13.38TkyTatem 656 -92 -12.30GS Yuasa 353 -44 -11.08JGC 1872 -179 -8.73Based on the constituents of the Nikkei 225 index

■ MAJOR MARKET VOLUMES

5 day Sep 26 Sep 23 average

NYSE 714 1227 1157NASDAQ 1496 1987 2094UK 3245 3283 3168France 277 300 266Germany (u) 267 234Japan 1608 1280 1276Volumes are rounded to nearest million.

■ MAJOR INDICES-HIGHS & LOWSSep 26 Day’s Day’s Open Close high lowDJ Ind 10771.78 10971.66 10988.16 10771.78Nasdaq Cmp 2496.98 2487.18 2501.48 2446.12S&P 500 1136.91 1152.18 1153.74 1131.07FTSE E300 884.10 897.58 907.91 870.27FTSE 100 5066.81 5089.37 5148.81 4974.03FTSE All Sh 2626.98 2637.46 2667.23 2584.04CAC 40 2754.82 2859.34 2916.75 2753.27XETRA DAX 5128.56 5345.56 5415.56 5118.19Topix 744.06 728.85 744.28 727.33Nikkei 8547.62 8374.13 8556.66 8359.70Hang Seng 17634.42 17407.80 17734.84 16999.54SMI 5246.71 5401.01 5455.34 5246.19AEX 260.20 269.83 272.34 260.20

■ NYSE RISES AND FALLS

Berkshire HathaShare Price

Aug 26 2011/2011 Sep 26

African BGShare Price

Aug 26 2011/2011 Sep 26

Erste Group BankShare Price

Aug 26 2011/2011 Sep 26

Tokyo Elec PowerShare Price

Aug 26 2011/2011 Sep 26

■ AMERICAACTIVE STOCKS

■ LONDONACTIVE STOCKS

■ EURO MARKETSACTIVE STOCKS

■ TOKYOACTIVE STOCKS

Sep 26

3059

1751

1212

96

2

236

Sep 23

3080

1887

1097

96

11

278

Sep 22

3104

343

2724

37

9

770

Issues Traded

Rises

Falls

Unchanged

New Highs

New Lows

Changeon day 4.98

Changeon day -69.50

Changeon day

1.80

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LENDING RATES

SEPTEMBER 27 2011 Section:Stats Time: 26/9/2011 - 20:47 User: brennanb Page Name: WSM1 USA, Part,Page,Edition: EUR, 24, 1


RateCurrentSinceLastMthagoYearago

USUSUSEuroUKJapanSwitzerland

FedFunds Prime Discount RepoRepo O’nightCallLibortarget

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 0.50 1.50 07-07-2011 1.25 1.00 1.00 0.50 05-03-2009 1.00 0.50 0.500.00-0.10 05-10-2010 0.10 0.10 0.100.00-0.25 03-08-2011 0.00-0.75 0.00-0.75 0.00-0.75

Sep26

INTEREST RATES - OFFICIAL

Euro 0.94-0.78 1.48-1.18 1.66-1.29 1.55-1.42 1.76-1.63 2.10-1.87DanishKrone 1.40-0.90 1.20-1.00 1.60-1.10 1.39-1.09 1.59-1.14 1.91-1.21Sterling 0.70-0.50 0.70-0.60 0.86-0.58 1.00-0.85 1.35-1.10 2.36-2.16SwissFranc 0.20--0.30 0.18-0.03 0.55-0.07 0.46-0.31 0.76-0.61 1.00-0.85CanadianDollar 1.24-1.09 1.15-0.87 1.60-1.10 1.68-1.18 1.73-1.23 2.20-1.70USDollar 0.37-0.22 0.32-0.20 0.44-0.24 0.33-0.23 0.74-0.54 1.06-0.86JapaneseYen 0.35-0.03 0.16-0.01 0.60-0.28 0.95-0.63 1.15-0.94 1.50-1.35Singapore$ 0.02-0.01 0.31-0.06 0.31-0.06 0.38-0.25 0.44-0.31 1.07-0.35

Source:Reuters.ShorttermratesarecallfortheUSDollarandYen,others:twoday’snotice.

Short 7days One Three Six One term notice month month month yearSep26

Over Change One Three Six One night Day Week Month month month month yearUS$Libor* 0.14611 - -0.001 0.002 0.23744 0.36278 0.54172 0.85011EuroLibor* 0.91000 - -0.020 0.069 1.29250 1.48625 1.69750 2.03125£Libor* 0.58438 0.001 0.001 0.004 0.68388 0.93625 1.21938 1.70188SwissFrLibor* - - - 0.020 0.00333 0.01167 0.06000 0.29500YenLibor* 0.10938 - 0.001 -0.004 0.14313 0.19350 0.33313 0.55250CanadaLibor* 1.03167 0.010 0.012 0.032 1.09500 1.17833 1.25667 1.65333EuroEuribor - - - - 1.35 1.54 1.73 2.06SterlingCDs - - - - 0.71 0.98 1.30 1.77US$CDs - - - - 0.22 0.40 0.57 1.13EuroCDs - - - - 1.20 1.40 1.65 2.00USo’nightrepo 0.20 0.010 0.050 0.090FedFundseff 0.08 - -0.010 -US3mBills 0.01 -0.005 -0.005 -0.010SDRintrate 0.32 - - -0.120EONIA 1.058 0.003 -0.054 0.168EURONIA 0.9582 -0.020 0.010 0.153RONIA 0.4826 0.007 -0.044 -0.047SONIA 0.5432 0.010 0.006 -0.006LA7DayNotice 0.40-0.35

Interbank£ 0.60-0.40 0.60-0.50 0.65-0.57 0.93-0.85 1.24-1.16 1.73-1.65

Over One One Three Six One night Week months months months year

*LiborratescomefromBBA(seewww.bba.org.uk)andarefixedat11amUKtime.Otherdatasour-ces:US$,Euro&CDs:dealers;SDRintrate:IMF;EONIA:ECB;EURONIA,RONIA&SONIA:WMBA.LA7daysnotice:Tradition(UK).

Sep26

INTEREST RATES - MARKET

Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk

Australia 99.8 100.4 105.5Canada 108.3 109.3 112.7Denmark 107.8 108.0 108.4Japan 184.7 184.8 178.2New Zealand 103.1 104.2 108.5Norway 105.3 104.8 106.7

Sweden 81.3 81.3 83.5Switzerland 144.3 144.0 152.7UK 79.4 78.7 79USA 79.3 79.1 76.4Euro 93.34 93.80 95.85

Mth ago Sep 26 Sep 23 Mth ago Sep 26 Sep 23FX - EFFECTIVE INDICES

Overall (£) 1093 232.21 -0.41 2.26 8.43 1.27 6.96Overall ($) † 3262 206.13 -0.36 1.33 7.86 1.33 7.86Overall (€) 2276 173.21 -0.11 0.50 3.32 0.18 0.55Global Inflation-Lkd † 97 225.12 -0.03 -2.13 8.45 -4.11 7.84Gilts (£) 33 239.71 -0.42 3.38 10.66 2.18 9.32Corporates (£) 703 214.58 -0.41 -1.17 1.93 -1.59 0.04Corporates ($) † 2111 213.24 -0.15 0.55 6.47 0.55 6.47Corporates (€) 1196 166.88 -0.17 -1.21 0.31 -1.08 -1.46Treasuries ($) † 156 204.45 -0.51 2.03 9.33 2.03 9.33Eurozone Sov (€) 261 173.67 -0.11 0.90 3.86 0.40 0.50ABF Pan-Asia unhedged 541 160.29 -0.75 -4.10 3.66 -3.86 4.07

Day’s Month’s Year Return Return Index change change change 1 month 1 year

Sterling Corporate (£) 79 105.45 -0.26 0.09 0.48 0.49 6.00Euro Corporate (€) 313 100.04 -0.29 -0.91 -3.95 -0.55 0.36Euro Emerging Mkts (€) 15 89.26 -0.57 -1.59 -3.15 -1.10 2.56Eurozone Gov’t Bond 246 99.86 -0.14 -0.48 -4.55 -0.16 -0.59

Emerging Markets 5Y 366.55 -2.23 - - 368.78 314.08Nth Amer Inv Grade 5Y 140.67 -4.85 - - 145.52 133.91Nth Amer High Yld 5Y 719.31 -7.48 53.67 -4.63 741.74 422.30Nth Amer HiVol 5Y 230.25 5.35 - - 230.25 221.67

Europe 5Y 196.43 0.29 - - 198.82 185.32Crossover 5Y 835.21 -1.08 - - 843.44 795.00HiVol 5Y 276.00 -1.14 - - 277.15 255.00Japan 5Y 208.07 9.57 - - 208.07 185.14SovX CEEMEA 5Y - - - - - -SovX Western Europe 5Y - - - - - -

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

Sep 26

Sep 26

Sep 26

Sep 23

Sep 23

BOND INDICES

Day’s Week’s Month’s Series Series Index change change change high low

Day’s Mth’s Spread Red Ratings Bid Bid chge chge vs date Coupon S* M* F* price yield yield yield USSep26

High Yield US$HSBKEurope 05/13 7.75 B+ Ba3 BB- 105.42 4.75 - - 4.36KazkommertsInt 04/14 7.88 B B2 B- 90.20 12.52 0.01 2.08 12.02Bertin 10/16 10.25 NR B1 - 97.55 10.89 - 2.60 10.03:

High Yield EuroRoyalCaribCrs 01/14 5.63 BB Ba2 - 91.80 9.70 0.11 2.22 9.22KazkommertsInt 02/17 6.88 B B2 B- 79.20 12.38 0.50 2.40 11.24:

Emerging US$Bulgaria 01/15 8.25 BBB Baa2 BBB- 112.75 4.07 0.19 0.52 3.68Peru 02/15 9.88 BBB Baa3 BBB- 123.31 2.57 -0.04 0.27 2.18Brazil 03/15 7.88 BBB-Baa2 BBB 117.50 2.53 0.00 0.93 2.14Mexico 09/16 11.38 BBB Baa1 BBB 141.50 2.44 -0.08 0.00 1.54Argentina 01/17 11.38 36.50 42.00 0.01 0.25 41.15Philippines 01/19 9.88 BB Ba2 BB+ 136.88 4.00 0.02 0.18 2.60Brazil 01/20 12.75 BBB-Baa2 BBB 162.25 3.89 -0.01 0.17 2.50Colombia 02/20 11.75 BBB-Baa3 BBB- 152.56 4.25 0.22 0.55 2.34Russia 03/30 7.50 BBB Baa1 BBB 111.56 5.36 0.20 1.09 4.45Mexico 08/31 8.30 BBB Baa1 BBB 141.75 4.97 0.05 -0.05 3.06Indonesia 02/37 6.63 BB+ Ba1 BB+ 106.50 6.12 0.33 0.73 3.12:

Emerging EuroBrazil 02/15 7.38 BBB-Baa2 BBB 112.43 3.38 0.57 0.38 2.75Poland 02/16 3.63 A- A2 A- 100.49 3.50 0.02 0.18 2.52Turkey 03/16 5.00 BB Ba2 BB+ 101.50 4.61 0.10 0.07 3.64Mexico 02/20 5.50 BBB Baa1 BBB 106.16 4.59 0.00 0.42 2.93

US$denominatedbondsNYclose;allotherLondonclose.*S-Standard&Poor’s,M-Moody’s,F-Fitch.Source:ThomsonReuters

BONDS - HIGH YIELD & EMERGING MARKET

Price Yield Month Break even Value No of return inflation* Stock Market stksCan 4.25% ’21 140.94 0.19 0.18 2.67 2.00 5.2 58.0 6Fr 2.25% ’20 111.86 0.85 0.82 0.42 1.50 20.0 162.4 12Swe 4% ’20 170.34 0.24 0.24 1.61 1.39 37.5 239.9 4UK 2.5% ’16 338.20 -1.29 -1.35 0.66 2.62 8.0 296.4 17UK 2.5% ’24 315.35 -0.04 -0.08 3.40 2.80 6.8 296.4 17UK 2% ’35 186.69 0.25 0.26 3.48 3.17 9.7 296.4 17US 3.625% ’28 146.21 0.67 0.59 2.34 1.81 16.8 748.1 31Representative 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.

Sep 23 Sep 23 Sep 22

BONDS - INDEX-LINKED

Spread Spread Bid vs vs Yield Bund T-BondsSep26

Spread Spread Bid vs vs Yield Bund T-Bonds

Australia 4.13 +2.31 +2.22Austria 2.68 +0.86 +0.77Belgium 3.83 +2.02 +1.93Canada 2.15 +0.34 +0.25Denmark 2.01 +0.19 +0.10Finland 2.28 +0.46 +0.38France 2.60 +0.78 +0.70Germany 1.82 - -0.09Greece 22.73 +20.92 +20.83Ireland 8.56 +6.75 +6.66Italy 5.65 +3.83 +3.75Japan 0.98 -0.83 -0.92

Netherlands 2.23 +0.42 +0.33NewZealand 4.25 +2.44 +2.35Norway 2.32 +0.50 +0.42Portugal 12.07 +10.25 +10.16Spain 5.19 +3.38 +3.29Sweden 1.71 -0.11 -0.20Switzerland 0.91 -0.91 -0.99UK 2.42 +0.61 +0.52US 1.90 +0.09 -

Yields:annualisedbasis.Source:ThomsonReu-tersSelectionmadebyThomsonReuters.

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 GovtsSep 26

US$Morgan Stanley 04/12 6.60 A A2 A 102.94 0.77 -0.01 -0.03 0.76Household Fin 05/12 7.00 A A3 AA- 103.40 1.53 -0.01 0.53 1.52HBOS Treas UK 06/12 5.50 A+ Aa3 AA- 102.11 2.45 0.53 -0.05 2.41Verizon Global 09/12 7.38 A- A3 A 106.06 0.76 -0.03 -0.02 0.66Abu Dhabi Nt En 10/12 5.62 NR A3 - 102.94 2.81 0.00 0.59 2.66Bank of America 01/13 4.88 A Baa1 A+ 99.28 5.45 - 1.04 5.35Goldman Sachs 07/13 4.75 A A1 A+ 103.65 2.66 - -0.24 2.47Hutchison 03/33 01/14 6.25 A- A3 A- 108.50 2.46 0.02 0.49 2.24Misc Capital 07/14 6.13 BBB+ Baa1 - 110.89 2.04 0.02 0.08 1.65BNP Paribas 06/15 4.80 AA- Aa3 A+ 94.74 6.40 0.62 1.11 6.02GE Capital 01/16 5.00 AA+ Aa2 - 108.24 2.93 0.15 0.50 2.03Erste Euro Lux 02/16 5.00 AA+ - - 104.24 3.92 0.00 0.39 2.98Credit Suisse USA 03/16 5.38 A+ Aa1 AA- 105.85 3.92 0.12 0.30 2.98SPI E&G Aust 09/16 5.75 A- A1 A- 112.62 2.99 0.08 -0.08 2.09Abu Dhabi Nt En 10/17 6.17 NR A3 - 112.17 3.90 - -0.02 2.84Swire Pacific 04/18 6.25 A- A3 A 112.92 3.99 0.19 0.46 2.60ASNA 11/18 6.95 A A3 A+ 114.01 4.61 0.10 -0.28 3.22Codelco 01/19 7.50 A A1 A+ 125.91 3.45 0.04 0.08 2.09Goldman Sachs 02/33 6.13 A A1 A+ 100.38 6.09 0.13 -0.27 3.09Bell South 10/31 6.88 A- A2 A 118.85 5.33 0.44 -0.15 2.33GE Capital 01/39 6.88 AA+ Aa2 - 115.76 5.73 0.04 0.04 2.85

EuroHSBC Fin 06/12 3.38 A A3 AA- 100.35 2.83 0.02 -0.11 2.73Xstrata Fin CA 06/12 4.88 BBB+ Baa2 - 101.74 2.34 -0.37 -0.11 2.05CCCI 10/12 6.13 A A1 A 102.35 3.80 -0.07 0.18 3.71Amer Honda Fin 07/13 6.25 A+ A1 - 107.54 1.93 0.05 -0.18 1.48SNS Bank 02/14 4.63 A- Baa1 BBB+ 99.67 4.76 0.06 0.55 4.31JPMorgan Chase 01/15 5.25 A+ Aa3 AA- 104.76 3.68 0.06 0.32 2.99Hutchison Fin 06 09/16 4.63 A- A3 A- 103.73 3.79 - -0.03 2.92Hypo Alpe Bk 10/16 4.25 - Aa3 - 101.63 3.89 -0.03 -0.25 2.84GE Cap Euro Fdg 01/18 5.38 AA+ Aa2 - 106.68 4.15 0.17 -0.14 2.85Unicredit 01/20 4.38 A Aa3 A 83.52 7.05 0.12 1.01 5.45ENEL 05/24 5.25 A- A2 A 95.25 5.79 0.05 0.51 3.71

YenAmer Int 04/12 1.40 A- Baa1 BBB 99.01 3.36 -0.01 0.01 3.25Citi Group 15 09/12 1.11 A A3 A+ 99.49 1.64 0.09 0.36 1.52ACOM 51 06/13 2.07 BB+ Ba3 A- 97.76 3.48 0.02 0.09 3.36Deutsche Bahn Fin 12/14 1.65 AA Aa1 AA 103.72 0.47 0.01 -0.02 0.26Nomura Sec S 3 03/18 2.28 - - - 103.30 1.71 - 0.09 1.21

£ SterlingHSBC Fin 03/12 7.00 A A3 AA- 101.96 2.85 0.02 0.30 2.27Slough Estates 09/15 6.25 - - A- 107.79 4.06 0.03 0.42 2.99ASIF III 12/18 5.00 A+ A2 A 95.44 5.71 0.01 0.27 3.63

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 Daychg Wkchg Month Year Date Coupon Price Yield yield yield chgyld chgyldSep26

Londonclose. Source:ThomsonReutersYields:LocalmarketstandardAnnualisedyieldbasis.YieldsshownforItalyexcludewithholdingtaxat12.5percentpayablebynonresidents.

Australia 12/13 5.50 104.14 3.53 0.04 -0.12 -0.24 -1.30 05/21 5.75 112.80 4.13 0.08 -0.12 -0.32 -0.93Austria 10/13 3.80 105.63 1.02 0.06 0.09 -0.04 0.05 09/21 3.50 107.12 2.68 0.08 0.10 -0.09 -0.16Belgium 03/13 4.00 103.25 1.77 -0.07 -0.19 -0.18 0.71 09/21 4.25 103.41 3.83 0.04 0.11 -0.11 0.58Canada 11/13 1.50 101.16 0.94 0.08 -0.10 -0.05 -0.53 06/21 3.25 109.55 2.15 0.10 -0.14 -0.25 -0.72Denmark 11/13 5.00 109.22 0.63 0.06 -0.09 -0.28 -0.36 11/21 3.00 109.04 2.01 0.08 -0.09 -0.39 -0.46Finland 07/13 5.38 108.39 0.58 0.01 -0.06 -0.22 -0.25 04/21 3.50 110.37 2.28 0.04 -0.03 -0.34 -0.29France 07/13 4.50 106.28 0.94 0.01 -0.01 -0.02 0.00 07/16 2.50 103.56 1.72 -0.01 -0.01 -0.07 0.01 10/21 3.25 105.70 2.60 0.04 0.00 -0.27 -0.11 04/41 4.50 120.58 3.39 0.04 -0.05 -0.24 0.01Germany 09/13 0.75 100.58 0.45 0.05 -0.06 -0.21 -0.29 04/16 2.75 107.80 0.98 0.07 -0.02 -0.26 -0.57 09/21 2.25 103.92 1.82 0.07 -0.05 -0.36 -0.54 07/40 4.75 143.80 2.58 0.05 -0.15 -0.46 -0.42Greece 05/14 4.50 36.72 55.20 -0.97 11.30 17.33 43.96 06/20 6.25 39.51 22.73 0.65 0.99 4.52 11.45Ireland 04/16 4.60 86.14 8.37 0.21 -0.02 -0.18 2.66 10/20 5.00 78.17 8.56 -0.23 -0.19 -0.41 1.68Italy 11/13 2.25 95.05 4.82 0.25 0.19 1.44 2.98 04/16 3.75 94.55 5.18 0.11 -0.10 0.93 2.38 09/21 4.75 93.81 5.65 0.01 0.00 0.59 1.73 09/40 5.00 81.49 6.52 -0.02 0.08 0.53 1.65Japan 09/13 0.10 99.95 0.12 -0.01 -0.02 -0.01 -0.01 09/16 0.40 100.25 0.35 0.00 0.00 0.02 0.06 09/21 1.10 101.06 0.98 0.00 -0.03 -0.06 -0.02 09/31 1.80 101.58 1.69 0.02 -0.06 -0.18 -0.04Netherlands 07/13 4.25 106.50 0.59 0.07 -0.01 -0.16 -0.09 07/21 3.25 108.87 2.23 0.03 -0.06 -0.37 -0.33NewZealand 04/13 6.50 105.50 2.83 -0.02 -0.23 -0.26 -1.11 05/21 6.00 113.70 4.25 -0.02 -0.25 -0.31 -0.91Norway 05/15 5.00 111.95 1.58 0.06 -0.16 -0.50 -1.03 05/21 3.75 112.25 2.32 2.32 -0.09 -0.35 -0.98Portugal 09/13 5.45 80.02 18.35 0.60 2.15 4.80 14.16 04/21 3.85 54.81 12.07 0.24 0.87 0.82 5.64Spain 10/13 2.50 98.05 3.48 -0.09 -0.39 0.25 1.26 04/21 5.50 102.23 5.19 -0.05 -0.12 0.19 1.00Sweden 05/14 6.75 114.47 1.08 0.05 -0.14 -0.39 -0.27 06/22 3.50 117.37 1.71 0.00 -0.18 -0.38 -0.82Switzerland 02/13 4.00 105.53 -0.04 0.00 - -0.08 -0.48 04/21 2.00 109.95 0.91 0.00 -0.10 -0.20 -0.50UK 06/12 5.25 103.24 0.56 0.00 0.00 0.05 -0.09 09/16 4.00 112.49 1.38 0.06 0.09 0.23 -0.33 09/21 3.75 111.70 2.42 0.06 -0.06 -0.04 -0.62 12/40 4.25 112.37 3.56 0.05 -0.09 -0.18 -0.46US 08/13 0.13 99.80 0.23 0.01 0.05 0.02 -0.21 08/16 1.00 100.45 0.91 0.05 -0.02 -0.07 -0.45 08/21 2.13 102.00 1.90 0.09 -0.17 -0.32 -0.71 08/41 3.75 114.78 3.00 0.12 -0.34 -0.60 -0.79

BONDS - BENCHMARK GOVERNMENT

Gross No of US $ Day Mth YTD Total YTD Div stocks index % % % retn % YieldFTSE Global All-Cap 7378 311.07 0.1 -6.6 -16.4 382.26 -14.6 3.0 Oil & Gas 167 367.34 -0.6 -10.2 -17.7 491.32 -16.1 3.1

Oil & Gas Producers 121 337.42 -0.5 -10.0 -17.2 456.52 -15.5 3.3Oil Equipment & Services 38 360.58 -0.9 -11.4 -18.8 451.64 -17.8 2.1Basic Materials 292 461.91 -1.5 -12.4 -26.4 602.50 -25.0 2.7Chemicals 110 440.16 -0.7 -10.2 -18.2 582.33 -16.5 3.1Forestry & Paper 16 147.89 -0.2 -7.0 -29.2 208.11 -27.3 4.2Mining 73 1037.61 -2.4 -12.6 -25.6 1323.30 -24.5 2.1Industrials 517 196.60 0.0 -6.7 -20.5 247.52 -19.0 2.9Construction & Materials 110 312.03 -0.5 -11.4 -24.3 410.61 -22.7 3.4Aerospace & Defense 28 256.86 0.8 -0.5 -8.7 321.77 -7.0 2.9General Industrial 52 131.31 0.1 -6.8 -20.4 174.86 -18.6 3.2Electronic & Electrical Equipment 73 203.22 -0.5 -4.2 -24.5 240.40 -23.5 2.3Industrial Engineering 105 440.89 -0.6 -9.5 -26.7 547.98 -25.6 2.5Industrial Transportation 91 328.72 0.5 -7.6 -19.8 413.96 -18.3 3.0Support Services 58 181.11 0.2 -2.7 -10.1 218.68 -8.6 2.6Consumer Goods 347 275.72 0.3 -5.7 -8.6 353.00 -6.7 2.8Automobiles & Parts 86 248.48 -0.2 -5.4 -19.2 308.34 -18.1 2.1Beverages 40 360.38 0.0 -4.8 -4.8 467.44 -2.8 2.9Food Producers 85 381.25 0.5 -8.0 -4.6 503.75 -2.3 3.0Leisure Goods 22 131.23 0.0 -4.7 -29.1 157.48 -28.2 2.5Personal Goods 62 410.48 0.8 -3.5 -5.5 512.81 -3.8 2.2Tobacco 13 762.94 0.1 -6.4 9.0 1250.96 13.1 4.5Health Care 147 222.85 0.4 -3.5 -1.8 281.92 0.5 2.9Health Care Equipment & Services 60 305.47 0.6 -3.1 -2.3 332.82 -1.5 1.2Pharmaceuticals & Biotechnology 87 170.82 0.3 -3.6 -1.6 221.45 1.1 3.5Consumer Services 348 210.89 0.8 -2.5 -7.7 252.75 -6.1 2.3Food & Drug Retailers 48 184.82 0.1 -6.4 -11.8 226.56 -10.1 3.0General Retailers 112 282.72 0.9 -1.1 -3.2 332.86 -1.6 2.0Media 82 136.18 1.3 -3.0 -11.3 163.79 -9.7 2.5Travel & Leisure 106 230.03 0.6 -1.7 -8.1 278.09 -6.6 2.1Telecommunication 101 136.90 0.5 -6.6 -8.9 199.35 -5.2 5.5Fixed Line Telecommuniations 49 120.44 0.8 -6.2 -10.8 186.50 -6.4 7.0Mobile Telecommunications 52 138.63 0.2 -7.1 -6.8 188.76 -3.9 4.0Utilities 160 224.47 0.4 -4.2 -12.2 344.43 -9.1 5.1Electricity 117 244.46 0.2 -3.9 -10.7 373.65 -7.8 4.7Gas Water & Multiutilities 43 239.47 0.6 -4.9 -14.8 372.79 -11.3 5.9Financials 622 131.40 0.5 -10.0 -26.0 179.93 -24.3 3.8Banks 240 133.07 0.9 -10.8 -29.4 191.24 -27.7 4.1Nonlife Insurance 64 112.99 0.3 -9.6 -20.3 141.83 -18.1 3.7Life Insurance 46 111.04 -0.5 -14.2 -29.9 150.22 -28.4 3.4Technology 189 99.11 0.4 1.3 -10.8 110.06 -9.8 1.6Software & Computer Services 68 159.46 0.8 1.8 -7.3 173.91 -6.5 1.2Technology Hardware & Equipment 121 79.14 0.2 1.0 -13.1 88.82 -11.9 1.8

Sep 23Countries & regions

FTSE Global Large Cap 1278 279.05 0.2 -6.6 -16.1 347.96 -14.3 3.2FTSE Global Mid Cap 1612 396.65 0.1 -6.3 -16.7 473.80 -15.2 2.6FTSE Global Small Cap 4488 421.29 0.0 -6.7 -17.3 492.42 -16.1 2.2FTSE All-World (Large/Mid Cap) 2890 182.57 0.1 -6.6 -16.2 235.89 -14.5 3.1FTSE World (Large/Mid Cap) 2464 318.80 0.2 -6.2 -15.8 553.21 -14.0 3.1FTSE Global All Cap ex UK 7041 315.83 0.1 -6.5 -16.4 384.06 -14.8 2.9FTSE Global All Cap ex USA 5403 352.45 -0.3 -9.8 -20.7 450.44 -18.7 3.6

FTSE Japan Large Cap 172 252.55 0.1 -0.9 -14.4 286.89 -13.3 2.6FTSE Japan Mid Cap 282 347.33 0.1 0.5 -6.2 388.98 -5.2 2.0FTSE Japan Small Cap 755 394.43 0.1 0.7 -1.5 451.86 -0.1 2.2FTSE Japan (Large/Mid Cap) 454 103.18 0.1 -0.6 -12.8 132.23 -11.8 2.5

FTSE North America Large Cap 293 254.15 0.5 -3.0 -10.2 303.65 -8.9 2.4FTSE North America Mid Cap 394 382.94 0.8 -2.8 -11.6 439.39 -10.6 1.9FTSE North America Small Cap 1528 400.99 0.8 -4.3 -14.0 450.46 -13.3 1.6FTSE All-World North America 687 170.25 0.5 -2.9 -10.5 209.37 -9.2 2.3FTSE All-World Dev ex North Am 1405 175.81 0.2 -8.9 -19.6 240.20 -17.5 3.9

FTSE Asia Pacific Large Cap ex Japan 447 489.65 -1.9 -11.4 -21.8 643.07 -19.7 3.5FTSE Asia Pacific Mid Cap ex Japan 428 631.13 -2.7 -13.5 -23.8 810.91 -21.8 3.5FTSE Asia Pacific Small Cap ex Japan 1205 485.04 -3.0 -13.9 -25.6 616.33 -23.9 3.2

FTSE Latin Americas All-Cap 214 1097.51 -0.5 -14.3 -28.5 1424.50 -26.9 3.5FTSE Middle East Africa All-Cap 221 609.59 -1.3 -10.3 -27.0 800.33 -25.1 3.6FTSE UK All Cap 337 264.86 1.0 -7.5 -15.4 360.57 -13.0 3.8FTSE USA All Cap 1975 280.17 0.7 -2.4 -10.3 329.35 -9.0 2.2FTSE Europe All Cap 1439 287.85 0.7 -10.6 -21.6 382.29 -19.2 4.3FTSE Eurobloc All Cap 700 262.05 1.1 -12.2 -25.4 351.80 -22.9 5.2

FTSE RAFI All-World 3000 Index 3017 3941.06 0.4 -6.9 -18.5 4375.10 -16.6 3.6FTSE RAFI US 1000 Index 993 4979.00 0.8 -2.8 -12.4 5692.47 -11.0 2.6FTSE EDHEC-Risk Efficient All-W 2890 206.03 0.1 -5.8 -12.3 250.56 -10.6 2.9FTSE EDHEC-Risk Efficient Dev Eur 518 194.72 0.3 -9.9 -17.6 251.96 -15.4 3.8

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. 2008. All Rights reserved. ”FTSE”, ”FT-SE” and ”Footsie” are trade marks of the London Stock Exchange and The Financial Times and are used by FTSE International 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 7378 311.07 0.1 -6.6 -16.4 382.26 -14.6 3.0FTSE Global All Cap ex Eurobloc 6678 317.92 0.0 -5.9 -15.2 385.25 -13.6 2.7FTSE All-World Developed 2092 281.38 0.4 -5.7 -14.9 347.74 -13.1 3.1FTSE Developed All-Cap 5738 294.36 0.4 -5.7 -15.0 361.14 -13.4 2.9FTSE Developed Large Cap 868 262.76 0.4 -5.8 -14.8 327.56 -13.0 3.2FTSE Developed Europe Large Cap 202 256.87 1.2 -10.5 -20.8 348.53 -18.1 4.7FTSE Developed Europe Mid Cap 316 332.10 0.0 -10.6 -23.2 424.83 -21.2 3.6FTSE Developed Europe Small Cap 786 437.98 -0.3 -9.1 -22.3 548.49 -20.6 3.4

FTSE All-World Asia Pacific ex Japan 875 385.17 -2.0 -11.7 -22.1 538.68 -20.0 3.5FTSE All Emerging All-Cap 1640 617.72 -1.7 -12.7 -25.5 777.72 -23.6 3.4FTSE All Emerging Large-Cap 410 597.71 -1.7 -12.5 -24.9 753.62 -23.0 3.4FTSE All Emerging Mid-Cap 388 725.25 -1.5 -13.0 -27.0 920.15 -25.1 3.3FTSE All Emerging Small-Cap 842 600.32 -2.3 -13.9 -27.6 740.57 -25.9 3.2FTSE All-World All Emerging Europe 74 407.59 -3.0 -15.2 -27.1 507.72 -25.4 3.1

Noof Euro Day’s Change Yield xdadj Totalretn stocks index chge% points gross% ytd (Euro)€

FTSEDevEurLCap 202 223.2 2.0 4.4 4.6 11.23 302.8FTSEDevEurMCap 316 286.5 1.3 3.7 3.5 12.18 366.6FTSEDevEurSCap 786 375.6 0.7 2.5 3.4 12.97 470.4FTSEDevEurope 518 145.5 1.9 2.7 4.4 7.09 207.2FTSEurofirst80 80 2754.2 2.6 68.9 5.7 136.29 3806.1FTSEurofirst100 100 2713.5 1.9 50.7 5.0 114.44 3763.0FTSEurofirst300 312 897.6 1.7 15.4 4.5 35.68 1355.9FTSEurofirst300Ezone 171 850.3 2.3 19.4 5.4 39.51 1277.2

Furtherinformationisavaliableonhttp://www.ftse.com.©FTSEInternationalLimited(”FTSE”)2010.Allrightsreserved.`FTSEísatrademarkofTheLondonStockExchangeplcandTheFinancialTimesLimitedandisusedbyFTSEunderlicense.`FTSEurofirstándÈurofirstáreregistredtrademarksofFTSEandEuronextN.V.AllrightsinandtotheFTSEurofirstindicesvestinFTSEandEuronextN.V.

FTSEurofirst300SupersectorsOil&Gas 18 269.9 0.0 0.0 4.8 10.60 362.5Chemicals 13 563.2 2.2 12.2 3.6 19.77 688.9BasicResources 17 485.1 -0.1 -0.5 2.7 12.88 570.9Construction&Materials 12 285.0 1.3 3.7 5.0 12.36 355.1IndustrialGoodss&Services 48 371.7 0.7 2.6 3.6 12.42 443.6Automobiles&Parts 10 384.1 -1.2 -4.7 3.7 13.96 445.4Food&Beverage 17 479.4 1.5 7.3 3.2 13.89 586.2Personal&Householdgds 19 504.1 1.1 5.4 3.0 14.78 609.4HealthCare 16 324.6 1.8 5.8 4.2 12.44 405.2Retail 16 280.3 1.6 4.3 4.0 7.49 341.4Media 10 228.4 1.5 3.4 5.0 11.10 298.5Travel&Leisure 6 283.0 0.9 2.4 3.1 8.68 355.5Telecommunications 14 265.7 1.8 4.6 7.6 15.83 390.0Utilities 22 301.6 2.8 8.3 7.3 16.72 421.2Banks 31 118.0 3.7 4.2 5.0 5.19 153.0Insurance 21 195.6 6.5 11.9 5.9 11.30 256.6FinancialServices 6 258.9 1.4 3.7 4.9 10.97 333.1Technology 11 187.0 1.5 2.8 2.9 5.58 215.8

Sep26

EQUITY INDICES - FTSE EUROPEAN

Much more data, including many tables not shown – and some no longer shown – in the paper and stock quotes updated during the day, are available on the market data pages of www.ft.com.Either click on the ‘market data’ side bar on the home page or go to www.ft.com/marketsdata. Bond and interest rate data can be found at www.ft.com/bonds&rates. UK gilt prices can be found at www.ft.com/giltswith the FTSE gilt indices at

www.ft.com/ftsegiltindices.A full commodity data service with hundreds of price quotes can be found at www.ft.com/commoditiesdata. For additional currency data (including futures and options) visit www.ft.com/currencydata. Information about the FTSE sector classification for stocks can be found on www.ft.com/ftsesectorsand the FT30 stock index at www.ft.com/ft30.Please send any comments to [email protected].

Market dataon the web

Reader guide to data in the FT

Argentina Merval 2493.64 2482.63

Australia ALLORDINARIES 3927.63 3978.47 S&P/ASX200Res 4291.69 4474.53 S&P/ASX200 3863.89 3903.16

Austria ATX 1897.47 1849.50

Belgium BEL20 2061.91 2021.37 BELMid 3106.25 3109.21

Brazil Bovespa 53033.43 53230.36

Canada S&P/TSXMet&Min 857.33 871.33 S&P/TSX60 658.35 653.30 S&P/TSXComp 11509.30 11462.87

Chile IGPAGen 18500.01 18385.36

China ShanghaiA 2506.77 2548.52 ShanghaiB 240.88 247.31 ShanghaiComp 2393.18 2433.16 ShenzhenA 1094.60 1112.55 ShenzhenB 542.30 556.32 FTSE/XinhuaA200 6970.34 7141.51 FTSE/XinhuaB35 7529.46 7744.18

Colombia CSEIndex 12746.57 12971.77

Croatia CROBEX 1850.48 1846.96

Cyprus CSEM&PGen 454.00 463.09

Czech Republic PX 901.70 864.10

Denmark OMXCCopenhagen20 341.62 338.72

Egypt EGX30 4304.10 (c)

Estonia OMXTallinn 523.88 521.82

Finland OMXHelsinkiGeneral 5109.73 5059.08

France CAC40 2859.34 2810.11 SBF120 2193.56 2159.71

Germany M-DAX 8215.64 8146.01 XETRADax 5345.56 5196.56 TecDAX 660.47 653.74

Greece AthensGen 784.65 797.95 FTSE/ASE20 320.81 329.37

Hong Kong HangSeng 17407.80 17668.83 HSChinaEnterprise 8735.40 9033.09 HSCCRedChip 3254.81 3327.78

Hungary Bux 14929.76 14940.77

India BSESens 16051.10 16162.06 S&PCNX500 3914.80 3952.10

Indonesia JakartaComp 3316.14 3426.35

Ireland ISEQOverall 2441.33 2404.74

Sep Sep 26 23

Israel TelAviv100 954.95 (c)

Italy FTSEMIB 14118.98 13664.91 FTSEItaliaMidCap 18756.80 18479.23 FTSEItaliaAll-Sh 14876.51 14466.30

Japan Nikkei225 8374.13 (c) Topix 728.85 (c) S&PTopix150 607.35 (c) 2ndSection 2089.22 (c)

Jordan AmmanSE 4653.55 (c)

Kenya NSE20 3383.27 3417.60

Latvia OMXRiga 380.84 374.67

Lithuania OMXVilnius 333.84 330.05

Luxenbourg LuxembourgGeneral 730.14 729.20

Malaysia FTSEBursaKLCI 1331.80 1365.94

Mexico IPC 32957.63 32588.43

Morocco MASI 11284.21 11393.84

Netherlands AEX 269.83 264.72 AEXAllShare 423.94 417.99

New Zealand NZX50 3255.37 3282.71

Nigeria SEAllShare 20175.54 20202.50

Norway OsloAllShare 385.87 389.84

Pakistan KSE100 11265.03 11606.86

Philippines ManilaComp 3721.22 3885.96

Poland Wig 36765.94 36549.47

Portugal PSIGeneral 2237.98 2228.84 PSI20 5750.60 5721.63

Romania BETIndex 4206.95 4216.59

Russia RTS 1312.40 1315.95 MicexIndex 1346.86 1327.19

Singapore FTSEStraitsTimes 2654.31 2698.80

Slovakia SAX 226.60 225.63

Slovenia SBITOP 592.07 594.43

South Africa FTSE/JSEAllShare 29718.56 30061.21 FTSE/JSETop40 26461.37 26834.39 FTSE/JSERes20 48159.10 49428.24

South Korea Kospi 1652.71 1697.44 Kospi200 214.18 218.62

Spain MadridSE 828.20 807.91 IBEX35 8201.70 7996.90

Sri Lanka CSEAllShare 6736.02 6734.60

Sweden OMXStockholm30 872.98 862.35

OMXStockholmAS 272.83 271.16

Switzerland SMIIndex 5401.01 5298.83

Taiwan WeightedPr 6877.12 7046.22

Thailand BangkokSET 904.06 958.16

Turkey ISE100 56801.20 56323.38

UK FTSE100 5089.37 5066.81 FT30 1784.50 1769.90 FTSEAllShare 2637.46 2626.98 FTSEtechMARK100 1969.00 1968.34 FTSE4GoodUK (u) 4197.74

USA S&P500 1147.56 1136.43 FTSENasdaq5000 6542.03 6536.62 NasdaqCmp 2485.39 2483.23 Nasdaq100 2207.46 2206.86 Russell2000 656.06 652.43 NYSEComp. 6845.95 6770.73 Wilshire5000 (u) 11859.33 DJIndustrial 10921.94 10771.48 DJcomposite 3749.41 3720.28 DJTransport 4273.78 4218.77 DJUtilities 433.95 431.55

Venezuela IBC 98988.56 100646.27

Vietnam VNI 434.43 440.30

Cross-Border Stoxx50€ 2094.08 2050.12 EuroStoxx50€ 2083.35 2026.03 DJGlobalTitans$ 158.85 157.14 Euronext100ID 541.19 532.96 FTSEMultinatls$ (u) 987.94 FTSEGlobal100$ 868.64 860.43 FTSE4GoodGlob$ (u) 3605.11 FTSEE300 897.58 882.18 FTSEeXTAllShare€ (u) (u) FTSEurofirst80€ 2754.23 2685.37 FTSEurofirst100€ 2713.49 2662.75 FTSELatibexTop€ 4079.40 4045.60 FTSEEurotop100 1866.15 1831.54 FTSEGoldMin$ (u) 3618.53 FTSEAllWorld (u) 182.57 FTSEWorld$ (u) 318.80 MSCIAllWorld$ (u) 1094.92 MSCIACWIFr$ (u) 277.84 MSCIEurope€ (u) 923.44 MSCIPacific$ 1863.32 1902.68 S&PGlobal1200$ 1226.84 1218.38 S&PEurope350€ 900.15 884.01 S&PEuro€ 873.39 853.27

Country Index Sep Sep 26 23

Sep Sep 26 23

Country Index Country Index

(c)Closed.(u)Unavaliable.†Correction.™ Subjecttoofficialrecalculation.Formoreindexcoveragepleaseseewww.ft.com/worldindices.Afullerversionofthistableisavailableontheft.comresearchdataarchive.

STOCK MARKET - WORLD MARKETS AT A GLANCE

Weekago Yield P/E Yield P/E Yield P/E

Argentina 6.5 9.2 6.4 9.3 6.0 10.0Australia 5.1 11.6 5.1 11.8 4.8 12.6Austria 3.7 8.7 3.6 8.8 3.3 9.6Belgium 2.7 11.6 2.7 11.5 2.6 12.3Brazil 4.3 10.3 4.2 10.3 3.9 10.9Bulgaria 1.0 5.5 1.0 5.5 1.0 5.7Canada 2.9 13.5 2.9 13.6 2.8 14.4S&P/TSX 3.2 13.4 3.1 14.0 3.0 14.2Chile 4.0 17.7 4.0 17.9 3.8 18.7China 4.0 7.2 3.9 7.4 3.5 8.2Colombia 3.2 15.6 3.2 15.7 3.0 16.4Cyprys 7.6 4.5 7.3 4.7 7.3 4.7CzechRep. 7.4 9.7 7.2 10.0 7.0 10.3Denmark 1.4 13.1 1.4 13.1 1.3 13.4Finland 4.9 11.0 4.9 11.2 4.5 12.1France 4.7 9.4 4.7 9.3 4.4 10.0Germany 3.9 9.0 3.9 9.0 3.6 9.7DAX30† 4.5 9.4 4.5 9.3 4.2 10.1Greece 4.9 8.9 4.7 9.2 4.5 9.6HongKong 3.1 8.9 3.1 9.0 2.8 9.8HangSeng†3.9 8.2 3.9 8.4 3.6 9.1Hungary 2.8 8.6 2.8 8.7 2.5 9.6India 1.4 16.5 1.4 16.7 1.3 17.2Indonesia 2.6 10.4 2.7 10.2 2.3 11.7Ireland 1.9 13.6 1.9 13.4 1.8 14.6Israel 5.2 9.6 5.3 9.5 5.1 9.8Italy 5.3 9.1 5.3 9.0 5.0 9.6Japan 2.4 13.4 2.4 13.4 2.3 13.7Topix† 2.5 12.4 2.5 12.4 2.4 12.5Luxemburg 4.0 12.8 4.0 12.8 3.9 13.1Malaysia 3.6 13.9 3.5 14.2 3.4 14.7

Weekago Yield P/E Yield P/E Yield P/E

Malta 4.7 12.2 4.7 12.2 4.6 12.4Mexico 2.2 11.8 2.2 11.7 2.0 12.6Netherland 3.3 9.6 3.3 9.6 3.1 10.3AEX† 5.2 8.1 5.3 8.0 4.9 8.6NewZealand3.6 19.9 3.5 20.1 3.5 20.1Norway 4.3 7.5 4.4 7.6 4.2 8.0Pakistan 6.3 8.8 6.3 8.8 6.4 8.6Peru 5.0 35.3 4.9 35.9 4.7 37.8Philippines 2.6 20.1 2.5 21.1 2.4 21.9Poland 3.2 9.4 3.2 9.5 3.0 10.2Portugal 8.3 4.4 8.2 4.5 7.8 4.7Romania 3.8 8.9 3.8 9.1 3.6 9.5Russia 2.6 5.9 2.5 6.2 2.3 6.7Singapore 3.2 11.2 3.1 11.4 3.1 11.6Slovenia 2.9 10.6 2.9 10.9 2.7 11.3SouthAfrica 3.6 14.8 3.5 15.1 3.5 15.4SouthKorea 1.6 10.1 1.5 10.7 1.5 11.0Spain 6.9 7.4 7.0 7.3 6.6 7.8Ibex35† 7.6 6.8 7.6 6.7 7.2 7.2SriLanka 1.8 23.9 1.8 24.0 1.7 24.3Sweden 3.2 10.4 3.2 10.4 3.0 11.2Switzerland 3.8 13.0 3.8 13.0 3.7 13.5Taiwan 4.8 11.7 4.6 12.1 4.4 12.5Thailand 3.7 11.1 3.6 11.5 3.4 11.9Turkey 2.5 10.5 2.4 10.8 2.4 10.8UK 3.6 10.2 3.6 10.2 3.4 10.9USA 2.3 13.0 2.3 13.0 2.1 14.0DowJones†3.0 11.8 2.9 12.2 2.8 12.6S&P500† 2.8 12.8 2.8 13.1 2.6 13.6Venezuela 13.5 4.4 13.5 4.4 13.5 4.4

CountryyieldsandP/E’srelatetoasampleofstocksthatcoveratleast75%ofeachmarketscapita-lisation.†LossesareexcludedfromtheP/Ecalculationoncountryindices.Source:ThomsonReuters

Sep23 Sep22 Sep23 Sep22STOCK MARKET - RATIOS VOLATILITY INDICES

Day Chng Prev. 52 wk high 52 wk lowVIX † 42.12 0.87 41.25 48.00 14.27VXD † 38.33 -0.15 38.48 40.49 12.20VXN † 41.90 2.02 39.88 45.72 15.19VDAX ‡ 44.30 0.16 44.14 45.78 14.40

† CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility, ‡ Deutsche Borse. VDAX: DAX Index Options Volatility.

Sep 26

Open Sett Change High Low Est.vol OpenintSep26

Euribor3m* Nov 0.00 98.74 -0.01 0.00 0.00 - -Euribor3m* Feb 0.00 98.89 -0.01 0.00 0.00 - -Euribor3m* Jun 99.04 99.03 -0.02 99.09 99.00 115,104 368,276Euribor3m* Sep 99.03 99.01 -0.03 99.08 98.98 105,161 341,584Euroswiss3m*Dec 100.12 100.11 -0.01 100.13 100.10 2,133 65,873Euroswiss3m*Mar 100.20 100.16 -0.01 100.20 100.15 2,087 67,310Euroswiss3m*Jun 100.21 100.16 -0.01 100.21 100.16 1,812 49,115Sterling3m* Nov 0.00 99.08 +0.01 0.00 0.00 - -Sterling3m* Mar 99.09 99.11 +0.02 99.12 99.08 42,600 442,898Sterling3m* Jun 99.13 99.15 +0.03 99.16 99.11 40,061 230,033Sterling3m* Sep 99.13 99.16 +0.03 99.17 99.12 30,058 268,055Eurodollar3m†Nov 99.540 99.56 +0.015 99.565 99.535 1,667 14,055Eurodollar3m†Feb 0.000 99.50 +0.015 99.495 0.000 - -Eurodollar3m†Jun 99.480 99.50 +0.015 99.505 99.470 135,386 1,105,142Eurodollar3m†Sep 99.485 99.50 +0.010 99.510 99.475 114,116 735,767FedFnds30d‡Sep 0.000 99.91 - 0.000 0.000 - 50,642FedFnds30d‡Oct 0.000 99.91 - 0.000 0.000 - 62,440FedFnds30d‡Nov 0.000 99.92 - 0.000 0.000 - 62,719Euroyen3m‡‡Nov 0.000 99.685 +0.005 0.000 0.000 - -Euroyen3m‡‡Mar 99.695 99.695 +0.005 99.695 99.690 4,820 198,228Euroyen3m‡‡ Jun 99.690 99.690 - 99.695 99.690 987 106,003Euroyen3m‡‡Sep 99.690 99.695 +0.005 99.695 99.690 1,783 61,675

INTEREST RATES - FUTURES

Contractsarebasedonvolumestradedin2004Sources:*NYSELIFFE.†CME.‡‡TIFFE

Market data

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 notaccept responsibility and will not be liable for any loss arising from the reliance on or use of theinformation.

Euro-€ £ Stig. SwFr US $ Yen Bid Ask Bid Ask Bid Ask Bid Ask Bid Ask1 year2 year3 year4 year5 year6 year7 year8 year9 year10 year12 year15 year20 year25 year30 year

Bid and ask rates as of close of London business. US $ is quoted annual money actual/360 basis against 3 month Libor. £ and Yen quoted on a semi-annual actual/365 basis against 6 month Libor. Euro/Swiss Franc quoted on annual bond 30/360 basis against 6 month Euribor/Libor with exception of the 1 year rate which is quoted against 3 month Euribor/Libor. Source: ICAP plc.

0.02 0.080.09 0.170.26 0.340.48 0.560.71 0.790.90 0.981.04 1.121.16 1.241.26 1.341.35 1.431.47 1.571.59 1.691.63 1.731.64 1.741.64 1.74

0.45 0.480.49 0.520.64 0.670.89 0.921.16 1.191.40 1.431.61 1.641.77 1.801.91 1.942.03 2.062.23 2.262.43 2.462.58 2.612.65 2.682.69 2.72

0.31 0.370.31 0.370.33 0.390.37 0.430.43 0.490.51 0.570.61 0.670.72 0.780.84 0.900.95 1.011.13 1.211.36 1.441.58 1.661.66 1.741.70 1.78

0.90 0.931.18 1.221.31 1.351.50 1.551.71 1.761.91 1.962.08 2.132.25 2.302.40 2.452.52 2.572.71 2.782.91 3.003.09 3.223.20 3.333.24 3.37

1.49 1.531.39 1.431.51 1.551.69 1.731.88 1.922.04 2.082.17 2.212.27 2.312.36 2.402.44 2.482.57 2.612.69 2.732.71 2.752.66 2.702.61 2.65

Sep 26

INTEREST RATES - SWAPS

Energy Price* Change

Sources: † NYMEX, ‡ ECX/ICE, u CBOT, @ NYSE Liffe, ™ NYBOT, ™ CME, ™ LME/London Metal Exchange. * Latest prices, $ unless otherwise stated. ± Platts. ≠ The Steel Index.

Agricultural & Cattle Futures Price* Change

Precious Metals (PM London Fix)

Base Metals (™ LME 3 Month)

WTI Crude Oil † Nov 80.24 0.39Brent Crude Oil ‡ Nov 103.94 -0.03RBOB Gasoline † Oct 2.5694 +0.0147Heating Oil † Oct 2.7915 -0.0043Natural Gas † Oct 3.782 +0.081Ethanol u Oct 2.549 +0.029Uranium 54.00 ncCarbon Emissions ‡ Sep €10.81 -0.46Diesel (French) 915.00 +0.50Unleaded (95R) 947.00 -30.00

Aluminium 2220.50 +15.50Aluminium Alloy 2190.00 -20.00Copper 7240.00 -20.00Lead 1974.00 -48.00Nickel 18395.00 +395.00Tin 20550.00 +1550.00Zinc 1892.00 -63.00

Gold 1598.00 -91.00Silver (US Cents) 2816.00 -474.00Platinum 1570.00 -81.00Palladium 639.00 -20.00

Corn u Dec 648.00 +9.50Wheat u Dec 648.25 +7.50Soyabeans u Nov 1259.75 +1.75Soyabeans Meal u Oct 326.20 +0.20Cocoa v Dec £1747 +13Cocoa ™ Dec 2.678 +0Coffee (Robusta) v Sep 1923 +6Coffee (Arabica) ™ Dec 235.95 +4.50White Sugar v Dec 634.00 +2.50Sugar 11 ™ Oct 25.09 +0.25Cotton ™ Oct 98.43 -1.56Orange Juice ™ Nov 150.40 -4.85Palm Oil Dec 992.50 -32.50Live Cattle ™ Oct 119.725 +2.900Feeder Cattle ™ Sep 132.900 +0.800Lean Hogs ™ Oct 88.500 -0.300

Bulk CommoditiesIron Ore (Platts) ± Oct 159.75 ncIron Ore (TSI) ≠ 172.90 -1.20globalCOAL RB Index 112.82 -0.56Baltic Dry Index 1928 +8

% Chg % Chg Mnth YearS&P GSCI Spt 599.25 -7.9 13.7DJ UBS Spt 143.09 -9.7 3.3R/J CRB TR 302.06 -9.0 7.9Rogers RICIX TR 3534.22 -8.9 7.8M Lynch MLCX Spt 507.94 -8.4 11.9UBS B’berg CMCI TR 1259.08 -9.8 7.8LEBA EUA Carbon 11.25 -14.4 -24.8LEBA CER Carbon 8.02 -11.9 -31.6LEBA UK Power 49.71 2.6 17.5

Sep 23

COMMODITIES

DOLLAR EURO POUND Closing Day’s Closing Day’s Closing Day’s Currency Mid Change Mid Change Mid Change

DOLLAR EURO POUND Closing Day’s Closing Day’s Closing Day’s Currency Mid Change Mid Change Mid Change

RatesarederivedfromWM/Reutersat4pm(Londontime).*Theclosingmid-pointratesfortheEuroand£againstthe$areshowninbrackets.TheotherfiguresinthedollarcolumnofboththeEuroandSterlingrowsareinthereciprocalforminlinewithmarketconvention.Currencyredenominatedby1000.SomevaluesareroundedbytheF.T.Theexchangeratesprintedinthistablearealsoavailableontheinternetathttp://www.FT.com/marketsdataEuroLockingRates:AustrianSchilling13.7603,Belgium/LuxembourgFranc40.3399,Cyprus0.585274,FinnishMarkka5.94572,FrenchFranc6.55957,GermanMark1.95583,GreekDrachma340.75,IrishPunt0.787564,ItalianLira1936.27,Malta0.4293,NetherlandsGuilder2.20371,PortugueseEscudo200.482,SloveniaTolar239.64,SpanishPeseta166.386

Argentina (Peso) 4.2023 -0.0015 5.6611 -0.0218 6.5333 0.0435Australia (A$) 1.0289 0.0082 1.3860 0.0063 1.5996 0.0239Bahrain (Dinar) 0.3770 - 0.5079 -0.0018 0.5862 0.0041Bolivia (Boliviano) 6.9200 - 9.3223 -0.0325 10.7586 0.0755Brazil (R$) 1.8523 -0.0217 2.4953 -0.0382 2.8797 -0.0134Canada (C$) 1.0361 0.0096 1.3957 0.0080 1.6108 0.0261Chile (Peso) 513.250 -3.0000 691.425 -6.4678 797.950 0.9630China (Yuan) 6.4006 0.0117 8.6226 -0.0143 9.9510 0.0878Colombia (Peso) 1909.00 4.0000 2571.71 -3.5641 2967.92 26.9843CostaRica (Colon) 512.845 2.0700 690.880 0.3880 797.321 8.7857CzechRep. (Koruna) 18.2571 -0.0330 24.5950 -0.1305 28.3843 0.1480Denmark (DKr) 5.5234 0.0178 7.4409 -0.0019 8.5873 0.0877Egypt (Egypt£) 5.9640 -0.0090 8.0344 -0.0402 9.2722 0.0511HongKong (HK$) 7.7981 -0.0027 10.5052 -0.0404 12.1237 0.0808Hungary (Forint) 215.225 1.4695 289.940 0.9750 334.610 4.6146India (Rs) 49.4500 0.0150 66.6166 -0.2121 76.8800 0.5622Indonesia (Rupiah) 9060.00 280.000 12205.2 335.936 14085.6 531.018Iran (Rial) 10798.5 20.0000 14547.2 -23.7159 16788.4 148.580Israel (Shk) 3.7285 0.0379 5.0229 0.0336 5.7967 0.0991Japan (Y) 76.3800 0.1200 102.895 -0.1968 118.748 1.0178OneMonth 76.3505 0.0025 102.824 0.0007 118.665 0.0029ThreeMonth 76.2880 0.0080 102.735 0.0073 118.507 0.0107OneYear 75.9065 0.0152 102.309 -0.0298 117.674 0.0121Kenya (Shilling) 102.100 3.3000 137.544 3.9812 158.735 6.2074Kuwait (Dinar) 0.2779 0.0009 0.3743 -0.0001 0.4320 0.0045Malaysia (M$) 3.1811 0.0111 4.2854 0.0000 4.9457 0.0518Mexico (NewPeso) 13.6503 -0.0946 18.3890 -0.1921 21.2222 0.0028NewZealand (NZ$) 1.3006 0.0170 1.7521 0.0169 2.0220 0.0404Nigeria (Naira) 157.900 1.3500 212.715 1.0828 245.487 3.8053Norway (NKr) 5.8027 -0.0176 7.8170 -0.0511 9.0214 0.0361Pakistan (Rupee) 87.5200 -0.0850 117.903 -0.5263 136.067 0.8227Peru (NewSol) 2.7675 0.0030 3.7282 -0.0090 4.3027 0.0348Philippines (Peso) 43.8850 0.3050 59.1197 0.2061 68.2280 0.9492

Poland (Zloty) 3.2735 0.0149 4.4099 0.0049 5.0893 0.0588Romania (NewLeu) 3.1949 0.0137 4.3040 0.0035 4.9671 0.0559Russia (Rouble) 32.4213 0.3870 43.6763 0.3708 50.4053 0.9509SaudiArabia (SR) 3.7506 0.0001 5.0526 -0.0175 5.8311 0.0411Singapore (S$) 1.3012 0.0057 1.7529 0.0016 2.0230 0.0231SouthAfrica (R) 8.0761 -0.1970 10.8797 -0.3043 12.5559 -0.2161SouthKorea (Won) 1192.90 23.0000 1607.02 25.4860 1854.60 48.5101Sweden (SKr) 6.8743 0.0115 9.2607 -0.0168 10.6874 0.0927Switzerland (SFr) 0.9033 0.0004 1.2169 -0.0037 1.4044 0.0105Taiwan (T$) 30.5940 0.1980 41.2147 0.1238 47.5645 0.6391Thailand (Bt) 31.1350 0.2450 41.9435 0.1848 48.4056 0.7176Tunisia (Dinar) 1.4350 0.0058 1.9332 0.0011 2.2310 0.0246Turkey (Lira) 1.8604 0.0233 2.5063 0.0227 2.8924 0.0562UAE (Dirham) 3.6730 -0.0001 4.9480 -0.0174 5.7104 0.0399UK(0.6432)* (£) 1.5547 0.0109 0.8665 -0.0092 - -OneMonth 1.5542 0.0000 0.8665 0.0000 - -ThreeMonth 1.5534 - 0.8669 0.0000 - -OneYear 1.5503 -0.0001 0.8694 -0.0005 - -Ukraine (Hrywnja) 7.9993 -0.0022 10.7762 -0.0407 12.4365 0.0837Uruguay (Peso) 20.0500 0.2500 27.0104 0.2438 31.1718 0.6045USA ($) - - 1.3472 -0.0047 1.5547 0.0109OneMonth - - 1.3467 0.0000 1.5542 0.0000ThreeMonth - - 1.3467 -0.0001 1.5534 -OneYear - - 1.3478 -0.0007 1.5503 -0.0001Venezuela(BolivarFuerte) 4.2947 - 5.7856 -0.0202 6.6769 0.0468Vietnam (Dong) 20832.0 - 28063.8 -97.9104 32387.5 227.069

Euro(0.7423)* (Euro) 1.3472 -0.0047 - - 1.1541 0.0121OneMonth 1.3467 0.0000 - - 1.1540 0.0000ThreeMonth 1.3467 -0.0001 - - 1.1535 0.0001OneYear 1.3478 -0.0007 - - 1.1502 0.0005

SDR - 0.6407 0.0004 0.8631 -0.0024 0.9961 0.0077

Sep26

COMMODITIES www.ft.com/commodities

CURRENCIES www.ft.com/currencydata

INTEREST RATES www.ft.com/bonds&rates

INTEREST RATES www.ft.com/bonds&rates

SEPTEMBER 27 2011 Section:Stats Time: 26/9/2011 - 20:54 User: brennanb Page Name: CURRTAB USA, Part,Page,Edition: EUR, 25, 1


Markets & Investing

Hints of newdeal welcomed

Hints of a fresh eurozonedeal that would include ahuge boost to the size ofthe single currency’srescue fund were greetedas a positive step, if true,by increasingly scepticalinvestors and analysts,writes Richard Milne.

Talks at the InternationalMonetary Fund annualmeetings in Washingtonled to speculation that the€440bn European FinancialStability Facility could useleverage to lift its fundingpossibilities to €1,000bn€3,000bn.

A consensus in themarkets had hit on afigure of about €2,000bnneeded for the rescue fundbecause of the size of theItalian bond market, theworld’s thirdlargest with€1,600bn debt outstanding.

“If the reports arecorrect and the measuresget full approval, it wouldcertainly be one of themost positive steps sofar,” said Jim Reid,strategist at DeutscheBank. But after datashowed Europe on thebrink of a recession andGreece contracting everharder, he added: “I stilldon’t think it addressesthe growth concern.”

Gibson Smith, cochiefinvestment officer at JanusCapital in Denver, underlinedthe nervousness of manyinvestors in dealing withheightened policy risk:“The problem in Europe isthat you are dealing with alot of political decisionsthat will set the tone forfinancial markets.”

The hints in Washingtonfrom senior Europeanofficials left open many ofthe mechanisms of howany expansion of the EFSFwould work. One possibilityis that the EFSF couldinsure government debtbut team up with theEuropean Central Bank totap the latter’s far biggerbalance sheet. It couldthen use the money torecapitalise eurozonebanks as well as helpfinance strugglinggovernments.

Such a programmewould only addressonethird of the measuresneeded, according toCharles Robertson, head ofmacro strategy atRenaissance Capital. Heargued that in 2008 theUS not only recapitalisedthe banks, but alsoadopted a huge stimuluspackage and had a centralbank that conductedquantitative easing.

More QE will only give us more inf lation, not growth

It is sometimes said that bad news comesin threes. That certainly applies to globalfinancial markets over the summer.

In late July, the US budget deficit crisiserupted, followed by the downgrade of USsovereign debt by S&P in early August.That helped to reignite the most recentphase of financial market anxiety abouthigh deficits and debts in the euro area.Most recently we have had gloomystatements about world growth by globalfinancial leaders.

There is a common theme behind thistrio of harbingers of bad economic news. Itis a failure of leadership. In the US,policymakers showed themselves incapable

of devising a credible deficit reductionplan. A similar impasse seems to exist inthe euro area.

Yet global economic forecasts are notexcessively downbeat. The latestInternational Monetary Fund forecastspoint to 4 per cent global growth in 2011and 2012 – in line with the healthyeconomic growth rate we saw before thefinancial crisis. However, the gloomyprognostications of world leaders havefuelled suspicions in markets thatsomething dark and nasty is lurking inthe woodshed.

So what is the way out of this impasse?The first step to get out of a hole is tostop digging. If world leaders andpolicymakers have nothing positive to sayabout the current economic environment,then they should say nothing.

The second step is to build a positiveagenda for action at the G20 summit inearly November. However, the policyaction we now need is not a repeat of2008-09, when the main focus was onstimulatory policies to halt a downward

spiral in world demand and output.Instead, we need a focus on the policiesthat will help build recovery.

That requires a recognition that in theworld economy of the 21st century, it isthe Asia-Pacific region – supported byother emerging market economies – thatwill be the strongest engine of worldgrowth. Europe and the US need to adjust

to economic growth of about 2 per centover the medium term (if they can achieveit), and focus on maintaining relativelyhigh levels of employment.

The policy agenda for the westerneconomies now should not be aboutdemand expansion, but structuraladjustment: ensuring labour markets are

flexible; the business climate is notencumbered by excessive regulation; taxrates are as low as they can be; and taxstructures are efficient and rewardenterprise and innovation.

The third ingredient needed is forcentral banks to stop pretending they canremedy all the deficiencies of the economicsystem by providing unending amounts ofstimulus whenever growth appears weakin the short term. Historical experiencesuggests that continual injection ofdemand stimulus to counter weak growthleads to persistent inflation and financialinstability.

Central banks acted boldly – and rightly– in 2008-09 to stabilise economicconditions in the face of sharply fallingdemand and output. But they should nowbe focusing on a more conventionalinterpretation of their mandates. Thatmeans responding to upside risks toinflation by tightening policy whenappropriate, as well as being prepared torelax policy in response to downside risks.

In the UK, we missed the opportunity in

the second half of last year to start to reinin monetary stimulus. And the USembarked on its QE2 programme. Thesepolicies have not boosted growth. Rather,they have led to relatively high inflation.More stimulus is likely to result in moreof the same, while doing little if anythingto support growth.

What western economies now need isnot further stimulus, but an opportunityto adjust to the new post-financial crisisreality. And they need stronger and moreconfident signals from policymakers thatthey are committed to pursuing soundeconomic policies in the medium term.

We are in a tough period of economicpolicymaking, both for governmentsand central banks. But if policymakersduck difficult decisions in the currentclimate, they will find life even morechallenging in the future. The experienceof recent months has highlighted that veryclearly.

Andrew Sentance is a former member ofthe Bank of England’s monetary policycommittee

Nestlé loan highlights funding disparityterms?” he said. “They havea strong balance sheet, arein pretty much every coun-try in the world . . . and arein a defensive category.”

Larger US and Europeancompanies have been ableto tap banks and capitalmarkets for financing evenduring turbulent financialmarkets and in the

By Robin Wigglesworthand Louise Lucas in London

Nestlé, the world’s largestfood company, has signed aloan with Europe’s lowestborrowing costs in morethan four years, underlin-ing how banks are stilleager to lend to bluechipcompanies, while smaller,riskier companies faceincreasingly tough fundingconditions.

The one-year, €4bnrevolving credit facility willcost Nestlé 10 basis pointsabove the European inter-bank offered rate, thecheapest interest rate mar-gin since April 2007, accord-ing to Bloomberg data.

Jamie Isenwater, analystat Deutsche Bank, notedthat Nestlé trumped evensovereign borrowers onmost scores.

“Relative to the vastmajority of governments, ifnot all, Nestlé is the safestbet so why would you notgive them extra favourable

credit lines when they aredrawn down than beforethe financial crisis, as aresult of their own increas-ing funding costs.

Nestlé, rated double A byStandard & Poor’s, wouldpay a margin of 40 basispoints if it called on allthe funds in the €4bn facil-ity. The revolver willreplace a €2bn seven-yearcredit line signed in 2005.

Smaller companies arefacing a far more uncertainfunding market. Banks areunder pressure to delever-age, and have to set asidemore capital for riskierloans. At the same time, thehigh yield bond markets –which many companieshave increasingly turned toin recent years – have beenrumbled by this summer’sfinancial turmoil.

Plans by Premier Foods,the debt-saddled UK foodmanufacturer, to launch abond this year are likelyto be scuppered by the stateof markets.

Italy’s haircut reprieve looks temporaryslightly different basis.

Analysts believe thatcould pave the way for thecompany to increase hair-cuts on Italian debt by asmuch as 5 per cent, in linewith the recent increase forSpanish bonds.

“It appears that the initialintention was to increasehaircuts for Italian paper,”JPMorgan analysts includ-ing Nikolaos Panigirtzoglouand Seamus Mac Gorainsaid. “But given that Italianpaper is in the same cate-gory as French paper forhaircut purposes . . . theyhad to retract the haircutincrease for both Frenchand Italian paper as theformer was considered to beunfairly penalised.”

Repo transactions havegrown in importance forEurope’s troubled banks asthe market for unsecuredfunding – or funds notbacked by specific collateral– has struggled. SociétéGénérale said this month ithad €6bn worth of out-

By Tracy Alloway

Italy’s banks face the possi-bility of a setback in animportant source of fundingas the premium demandedon the use of Italian govern-ment bonds as collaterallooks set to rise.

The margins, or “hair-cuts”, required on Frenchand Italian bonds wereraised two weeks ago by aleading European clearinghouse, which meant lenderswould receive less cashwhen using those bonds assecurity for so-called “repo”funding.

LCH.Clearnet typicallyraises its required haircutson bonds and other assetsto compensate for addedrisk or volatility.

But last week, theclearing house retracted theplanned margin hikeson French and Italianpaper, just days after itsfirst announcement,while saying it wouldmanage Italian bonds on a

standing repo transactionsto help make up for a dropin dollar funding.

Such repo transactionstypically allow financialinstitutions to obtain short-term liquidity from theircounterparts or centralbanks, using bonds or otherassets as security.

JPMorgan estimates that

a 5 per cent increase in thehaircut would mean about€5bn of lost funding for Ital-ian banks, compared withthe €102bn worth of Italianrepos currently outstand-ing.

Italian banks are still thebiggest holders of theircountry’s debt, which was

The IMF, under Christine Lagarde, warned that Europe’s banks faced up to €300bn worth of losses Xinhua/Photoshot

...while credit risk soars as bank market caps tumble

France Germany Ireland Italy Portugal Spain

Europe’s exposure to eurozone banks totals €629bn...

Sources: UBS; IMF

Total (€bn) Since Jan 2010Basis points €bn

0

50

100

150

200

250

300

* Adjusted by tangible common equity

-400

-200

0

200

400

-400

-200

0

200

400

Change in eurozoneCDS spreads

Change in marketcapitalisation of

EU banks*

Banks Sovereigns

Investors wrestlewith prospect ofbank rescue plan

The idea that Europe’s trou-bled banks – still recoveringfrom the financial crisiswhich begun three yearsago – might need more capi-tal has proved to be a con-troversial one.

Over the weekend,reports that Europeanauthorities were busy pre-paring a bank rescue pack-age worth billions of euros– despite quick denials fromindividual banks and politi-cians – sparked anotherswing in bank share prices.Having plunged almost 5per cent last week, theEurostoxx 600 Bank indexpared a week’s worth oflosses on Monday as inves-tors digested the possibilityof another banking systembail-out.

But the prospect of bankshaving to fill a Greek – andpotentially an Italian andSpanish – shaped hole intheir balance sheets is gain-ing credence in the mar-kets, along with the possi-bility of a “debt restructur-ing” or outright default inthe eurozone. That begs thequestion of who – if anyone– will step in to hand moremoney to the region’s weak-ened financials.

Last week the Interna-tional Monetary Fundwarned Europe’s banksfaced up to €300bn worth oflosses as a result of theregion’s debt crisis, thoughit stressed that the estimatewas not “a calculation ofthe capital needs of banks”.

The latter arithmetic wasundertaken by the Euro-pean Banking Authoritythis year in its “stress test”of the banking system.These results, regarded bymany as too lenient,revealed a capital shortfallof just €2.5bn – a tinyfraction of the system’s

total sovereign exposures.Still, a looming Greek

default, or at the very leasta wave of haircuts on Greekgovernment bonds, meansthe health of Europe’sfinancial system is onceagain in doubt. Crucially,the stress tests did not takeinto account any debtrestructuring and a result-ant significant loss onbonds.

Analysts at banks andindependent researchhouses have estimated acapital hole of €100bn to€450bn for Europe’s banks,depending on economicforecasts and how severethe haircut to bonds.

Governments dealingwith their own fiscal criseswill be hoping privateinvestors step in to rescuesome banks, as they didafter Lehman Brothersfailed. Together with gov-

ernments, private investorshave poured €420bn intothe financial system in theyears since 2008, accordingto the European Commis-sion. Investors may be dis-heartened after their previ-ous experience, or put offby uncertainty about theultimate fate of Greece andother European peripherals.

Nearly half of the€6,500bn of governmentdebt issued by eurozonemembers shows signs ofheightened credit risk, theIMF says. That means thesize of the capital requiredto placate nervous investorsand counterparties couldoverwhelm even the privatesector’s pockets. If privateinvestors do not step in,that leaves European gov-ernments to fill the gap.

“If you look at what hap-pened when Lehman Broth-ers collapsed, the only wayto restore confidence is tohave a very broad move by

the governments in Europe,supporting the banks bothon liquidity and capital,”says Nils Melngailis, man-aging director at Alvarez &Marsal.

But, beset with its owndebt problems, Europemight have to get creativeto support banks.

The possibility of the€440bn European financialstability facility guarantee-ing European bank debt hasbeen mooted as one way ofshoring up the banks. Mostdramatic is the idea of a“euro Tarp”, reminiscent ofthe troubled asset relief pro-gramme which began in2008, which saw the US gov-ernment inject money intoits domestic banks in theform of preference shares.Some commentators havesuggested euro Tarp injec-tions could take the form ofmandatory convertiblebonds, which would turninto stock.

Others disagree with thebroad need to recapitalisealtogether.

“Recapitalisations are notthe primary way to solvethe eurozone crisis forbanks,” CreditSights said ina note to clients on Mon-day. “[Government bond]portfolios are simply toolarge to be taken off banks’balance sheets at a dis-count, or to be mitigated bycapital injections of any fea-sible size.”

They suggest instead thatgovernments seek to restorethe “risk-free” status oftheir bonds.

Most market participantsseem to agree, however,that a weakened bankingsystem will do nothing toaid Europe’s single econ-omy, with banks likely tocut down on lending asthey attempt to fortify theirbalance sheets. In themeantime, some Europeanbank stocks are being val-ued “like options”, accord-ing to Kian Abouhossein,JPMorgan analyst. Thatmeans equity investors arepricing in extreme events –such as default or an out-right rescue – rather thanmoderate price changes.

Comment, Page 11Lex, Page 14

Eurozone crisisWho, if anyone,will step in tohand more moneyto Europe’sweakened financialinstitutions, asksTracy Alloway

face of weakening economicgrowth.

Such companies as AT&T,the US telecommunicationscompany, Walt Disney andCoca-Cola Enterprises soldsizeable bonds this summerwith the lowest coupons onrecord despite the mayhemon global markets.

Similarly, banks also pre-fer to lend to large multina-tionals. This is because ofboth the companies’ safetyand the prospects of furtherbanking work that can bederived from lending rela-tionships, such as advisoryservices, underwriting andcash management.

Nestlé’s revolver was“a business developmentloan”, said Suki Mann,credit strategist at SociétéGénérale in London. “Banksare still prepared to offerthese facilities, in the hopethat the relationship willlead to knock-on businessin other areas.”

Nonetheless, banks stillrequire higher returns on

downgraded last week byStandard & Poor’s, therating agency.

“While these numbers aresmall, the lost fundingbecomes a bigger problem ifthese haircut increases arerepeated,” the analysts said.

LCH.Clearnet’s marginrequirements on Spanishbonds have increased twicein the past three months.

“LCH.Clearnet applied amore pragmatic treatmentof its margin requirementsto triple A-rated Francethan for Italy,” the com-pany said in a statement,adding that it would “con-tinue to monitor the level ofmargin that is appropriatefor Italy as it does for allsovereign debt”.

Rises in repo haircutsoften presage eurozonestress, some analysts say.

“Margin requirementshifts have acted as one ofthe key marker points ineach crisis,” noted BNYMellon’s chief currencystrategist Simon Derrick.

Shifts in marginrequirements ‘haveacted as one of thekey marker pointsin each crisis’

States dealing withtheir own fiscalcrises will behoping privateinvestors step in torescue some banks

AndrewSentanceINSIGHT

Europe and the US need toadjust to economic growth ofabout 2 per cent over themedium term

Nestlé is rated double Aby Standard & Poor’s

SEPTEMBER 27 2011 Section:Markets Time: 26/9/2011 - 19:44 User: kallmanng Page Name: LSE EUR, Part,Page,Edition: EUR, 26, 1


Markets & Investing

Hallowedgold havensuccumbsto selloff

When Christoph Eibl, acommodities hedge fundmanager, stood up lastweek at the gold industry’sannual conference in Mon-treal and predicted that theprecious metal would be“annihilated”, his audiencewas unreceptive.

“This reminds me of 1999-2000,” said Mr Eibl ofTiberius Group, referring tothe bubble in tech stocks.“It might go higher, but def-initely it will be annihilatedat some stage.”

While the assembled trad-ers, investors and bankersconceded the possibility ofa short-term correction ingold after a surge of almost30 per cent in less thanthree months, they wereconfident in their bullishconsensus – that the yellowmetal would rise to freshrecords above $2,000 a troyounce in the coming year.

That confidence has beenshaken. Gold, touted as theultimate haven asset, wassupposed to rise in a crisis.Yet in the past four days,its behaviour has mirroredthat of the riskiest of assets.

Since Wednesday, amidintensifying fears about theeurozone debt crisis, theprecious metal has tumbledas much as $270 an ounce totouch a low of $1,534.49 on

Monday. After hitting arecord high of $1,920 justthree weeks ago, it hasdropped 20 per cent.

Why has it fallen sosharply? One explanation isthe dollar’s rally since theannouncement by the Fed-eral Reserve last week of“Operation Twist”, whichwill reshape its bond portfo-lio. Another is that inves-tors have been forced to sellgold to meet losses else-where. Finally, CME Group,which runs Comex, the NewYork exchange where goldfutures are traded, said onFriday night it would raiseby 21.5 per cent the marginrequirement – or capitalthat needs to be set aside inorder to trade – for gold.

But none of those factorsoffers a satisfactory expla-nation of the collapse in thegold price – its sharpestdrop over four days since1983 – for fearful investorswho had bought it as insur-ance against exactly thesort of market turmoil thatis playing out.

The price swings havebeen so violent that someanalysts suggest chastenedinvestors may steer clearof gold for the foreseeablefuture. “What might havestarted as forced margincall selling to cover losseselsewhere now has thepotential to become a game-changer for precious met-als,” says Edel Tully,precious metals strategistat UBS.

Nonetheless, most inves-tors continue to defy MrEibl’s gloomy outlook forgold, and remain bullishabout the metal. After all,they argue, if anything has

changed about the globalmacroeconomic situation inthe past week, it is that ithas worsened.

“There isn’t a singlemacro, geopolitical or anyother event that hasoccurred in the last threedays to give evidence of areversal in the gold rally,”says James Steel, preciousmetals strategist at HSBCin New York.

Traders point out thatthis is not the first timegold has fallen at the peakof a crisis. At the height ofthe financial crisis in 2008,gold struggled for direction.From March 17, the day

after the Bear Stearns col-lapse, to a low in mid-October, the bullion fellmore than 30 per cent. Inthe next year, it surged50 per cent.

Likewise, when the DubaiWorld default triggered awave of selling across glo-bal financial markets inNovember 2009, golddropped 12 per cent in thesubsequent 10 weeks, onlyto rally to fresh records.

“In these circumstancesthe call from worried inves-tors does not tend to be ‘Getme out of everything exceptfor gold, oh and that otherone’,” says Jonathan Spall,

head of precious metalssales at Barclays Capital inLondon. “It is simply ‘sell’.”

Indeed, there were signson Monday that some trad-ers were attempting to picka bottom. By mid-afternoonin London, bullion had ral-lied more than 5 per centfrom its low of the day totrade at $1,612.

Investors in gold throughexchange-traded funds,which now hold more goldthan most central banks,have also stuck with themetal. The holdings of thelargest, the SPDR GoldShares, remained flat at1,252 tonnes throughout

the whole of last week.Crucially for traders who

watch technical models, theyellow metal managed onMonday to stay above$1,525, its 200-day movingaverage, a level that has notbeen breached since Janu-ary 2009. A fall below thatlevel could indicate a sus-tained drop in prices, trad-ers say.

However, it is not the fallin gold prices that has mostunnerved traders and inves-tors, but their volatility.The large daily swings inprices, combined with ajump in the cost of options– a measure of the market’s

expectations of future vola-tility – are concerning toinvestors, such as pensionfunds or central banks,which prize stability intheir investments.

“One of the things thatcould destroy gold’s safehaven appeal is excessivevolatility,” says Mr Spall.

Until volatility falls, orthere is a fresh develop-ment in the macroeconomicpicture such as anotherround of quantitative eas-ing, many investors willbe trading gold from thesidelines.

Additional reporting byGregory Meyer

The UK will undertake asyndicate sale of 41yearbonds on Tuesday, testingappetite for paper in amarket with yields across thecurve near record lows.

Trading Post has writtenbefore that gilts have beenbenefiting from theirinclusion in the basket ofsovereign debt “havens”.

But the chart below showsthat their performance overthe past few months relativeto Bunds has been slipping,pushing 10year spreadsback to around the 70 basispoint level.

The question for investorsis what has been the driverof the widening spread.

If it is an increase inBunds’ haven cachet, thenthat is less of a problem forgilt bulls. Those wishing tobet on a contracting spreadcould wait for a reduction ineurozone stresses. Somepatience may be required.

But if the widening spreadreflects a turn in attitudestowards the UK’s fiscalposition, then that is lesspromising for gilts over thelonger term.

However, gilts’ relationshipwith French peers, arguablythe closest proxy, suggestsworries about London’s paperare not the issue, for thespread between gilts andOATs has sat within a 25bprange for several months.

[email protected] global overview atwww.ft.com/markets

News analysisStrategists suggestinvestors may steerclear after metal’ssharpest fourdaydrop since 1983,says Jack Farchy

Source: Thomson Reuters

Not so hot

–17.6% –17.4% –14.9%

–8.0% –7.4% –2.6%–3.1%

–34.4%

% change, close on Sep 20 to low on Sep 26 2011

Silver spot Copper LME 3-month Platinum spot Gold spot

Oil Brent Equities FTSE All World Euro against $Greek government bonds

Trading postJamie Chisholm

10-year UK gilts


Spread over 10-year Germanbunds (% points)

2009 10 11-1.0

-0.8

-0.6

-0.4

-0.2

-0.0

Rice: an unstable staple?beyondbrics, the FT’s emerging markets hub

Rice is more than justanother commodity: for 3bnpeople it is a vital part oftheir daily diet and whenprices exceed $600 a tonne,or some 50 per cent abovetheir 10year average, theystart to worry, writes TimJohnston.

The 10year average forThailand’s benchmark100 per cent grade B whiterice is about $400 a tonnebut today it is selling for$619 a tonne. That is partlybecause Thailand, the world’sbiggest exporter, has saidthat it would pay its farmersBt14,800/tonne – equivalentto about $800/tonne in theexport market – in a moveaimed at boosting theincomes of rural farmers.

Samarendu Mohanty, aneconomist with theInternational Rice ResearchInstitute in the Philippines,says Thailand’s interventionwill push prices up.

But he adds: “Higherprices will also induce agreater supply from the restof the world and moderatethe effect on rice prices andit might even bring riceprices close to the level thatwould have been witnessedwithout the Thai pledgingprogramme. On the brightside, this process couldprovide an opportunity forcountries with abundant landand water, such as

Cambodia, Burma and Brazil,to emerge as alternatesuppliers to the global ricemarket.”

In the short term, despitethe current rising prices,there is no shortage of rice.India has recently reenteredthe market with 2m tonnes,Vietnamese production is stillgrowing, albeit at a slowerrate than in its glory days inthe early 1990s, and even ifThailand prices itself out ofthe global market, itsproduction will be available ata price, putting a ceiling onany upward movement.

In the long term, riceconsumers might have aproblem. According to MrMohanty, rice demand is

growing at 1.3 per cent ayear and yields at about1 per cent. Much of theshortfall to date has beenmade up with higherplanting areas, but thatsolution is starting to hitconstraints as rice farmingland is being squeezed bylarger populations andincreasing industrialisation.

But, in the medium term,there is hope for consumers.

Until it embarked on itsdisastrous “Burmese Road toSocialism” after the 1962military coup, Burma was theone of the world’s biggestrice exporters, and it isstarting to come back intothe market, exporting anestimated 1m tonnes lastyear. By comparison itexported 1.7m tonnes in1961.

The new Burmesegovernment is looking hardat poverty alleviation, andtop of the agenda is ricemarket reform. Thein Sein,the new president, has madeclear that he wants to openup the country’s markets, atleast internally.

Mr Mohanty believes thatthe emergence of newproducers such as Burma,Cambodia and Brazil willmake the sort of spikes thatdrove prices up to $1,080 atonne in 2008 less likely.

www.ft.com/beyondbrics

By Anthony Deutsch inJakarta and Emiko Terazonoin London

Tin prices rallied more than5 per cent on Monday asIndonesian tin producers,faced with potential lossesdue to a sharp fall in prices,said they had halted allexports and would notresume shipments until glo-bal prices had rebounded.

The archipelago is theworld’s largest producer oftin – whic is used for solder-ing of electronics and liningsteel cans – supplyingroughly 30 per cent of glo-bal consumption.

Tin fell sharply amid thewidespread commoditiessell-off last week, but themetal for three-month deliv-ery rose 5.4 per cent to$20,350 a tonne on the Lon-don Metal Exchange onMonday, while other base

metal prices flagged. “Allexport activities werestopped two days ago,” saidJohan Murod, head of theIndonesian Tin IndustryAssociation, which repre-sents the nation’s largesttin exporters. “Smelter own-ers have agreed to resumeexports when prices havereturned to normal.”

Industry leaders weremeeting on Monday to dis-cuss how long they wouldkeep up the measure. MrMurod said exports wouldresume once prices hadrebounded to $23,000, theprice at which Indonesianproducers break even. In2010, Indonesia producednearly 79,000 tonnes ofrefined tin and wasexpected to increase this to90,000 tonnes in 2011.

Fears that an economicslowdown in the US andEurope will damp demandfor raw materials have sentcommodities prices tum-

bling in the past week. Con-cerns that China – whichhas been an aggressivebuyer of industrial metalsover the past years – wouldhold back amid a tightinterest rate policy, alsoprompted selling.

Along with other indus-trial metals, tin sold offsharply last week, plungingas much as 27 per centbefore ending 18 per centlower over the five sessions.Tin for three-month deliv-ery clawed back some of itslosses on Monday althoughit was still off 40 per centfrom its record high inApril.

There was scepticismamong some analysts inLondon about whether ashipment ban could reallybe implemented, but Indo-nesia’s private smelter own-ers halted production andshipments for two-and-a-half months in 2008 inresponse to weak tin prices.

Peter Kettle, of the Inter-national Tin Research Insti-tute, said a similar movecould take about 10,000tonnes of tin out of the mar-ket. “This would be bullishfor prices if it weren’t foreverything else that wasgoing on [in the financialmarkets],” he said.

The bulk of Indonesiantin comes from Bangkaisland, off the western mosttip of the country, wheresmelters buy about three-quarters of their ore fromsmall scale miners beforerefining it for foreign mar-kets. Indonesia, the largesteconomy in south-east Asia,is heavily reliant on thesale of natural resources. Itis the world’s largest pro-ducer of thermal, or powerstation coal.

Additional reporting byTaufan Hidayat

Commodity indices, Page 25www.ft.com/commodities

Tin rises as Indonesia cuts supply

Thai white rice


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More news atFT.com

●Vietnamese coffeeThe world’s secondbiggestcoffee producer is tryingto boost domestic demandas it seeks a sustainablemodel for the industrywww.ft.com/beyondbrics

●Brink of recessionThe debt crisis has takenthe eurozone to the brinkof renewed recession andthreatens to envelope therest of the worldwww.ft.com/gavyndavies

●More on goldThe gold price is stillunderpinned by two verypowerful pillarswww.ft.com/alphaville

●RTSMicexVideo: fears of stifledcompetition are unfoundedwww.ft.com/tradingroom

●Follow us on Twitter@FTGlobalMarkets

●Markets LiveRead Neil Hume andBryce Elder every weekdayfrom 11am

COMMODITIES

SEPTEMBER 27 2011 Section:Markets Time: 26/9/2011 - 20:07 User: baileyp Page Name: ICNCOMMS, Part,Page,Edition: EUR, 27, 1

28 ★

MARKETSTuesday September 27 2011

Markets update

By Keyur Patel

European banks performedstrongly on Monday, amidgrowing optimism that gov-ernments and the EuropeanCentral Bank would takefurther action to tackleEurope’s debt crisis.

Having endured a diffi-cult past week, lendersresumed a rebound thatstarted late on Friday afterthe Group of 20 leadingeconomies said they wouldact to stabilise the globaleconomy.

After incurring sharprecent losses amid concernsabout growth in easternEurope, Austrian bankswere among the biggestgainers. Erste Group Bankgained 10.5 per cent to€18.96, while Raiffeisen rose10.3 per cent to €21.16, itshighest gain since May2010.

Financials performed wellelsewhere, too, rising by theclose after early gains weretempered in a volatile after-noon session. Germany’sDeutsche Bank and Com-

merzbank rose 8.7 per centto €25.12 and 7.8 per cent to€1.76 respectively, whileAllianz, the German insur-ance group, climbed 10.2 percent to €65.01. Frenchbanks, which led Friday’srally, were up again asSociété Générale climbed5.4 per cent to €17.55 andBNP Paribas rose 4 per centto €26.33.

However, Greek banksbucked the trend afterMoody’s cut the rating ofeight Greek lenders late onFriday, citing their expo-sure to the country’s gov-ernment debt. NationalBank of Greece lost 6.5 per

cent to €2.58, Piraeus tum-bled 12 per cent to €0.44 andAlpha Bank was down8.5 per cent to €1.19.

Following the weekend’sInternational MonetaryFund annual meeting inWashington, Barclays Capi-tal said that policymakerswere still “behind the curvein tackling the eurozoneproblem comprehensivelyenough to successfully con-tain contagion”.

“It has become obviousthat the problems of periph-eral sovereign credits andrelated bank holdings ofsuch bonds have adverselyaffected the ability of euro-area banks to access bankfunding at reasonablerates,” said BarCap’s JulianCallow and Frank Engels.

JPMorgan said in a noteto clients that Europeangovernments were likely toease the funding crisisthrough a capital injectionof up to €150bn to restoreconfidence in the bankingsector.

The FTSE Eurofirst 300rose 1.8 per cent to 897.58,after losing 5.9 per centlast week.

By Bryce Elderand Neil Hume

Financial stocks held firmin a skittish London marketwith Aviva among thebiggest gainers.

The insurer rallied 6.4 percent to 295p after InvestecSecurities played downfears of a dividend cut.

Aviva cut its dividend in2002 and 2009 and investorshave been anticipating thesame again.

On 2011 consensus fore-casts, the stock was yielding9.3 per cent – the FTSE 100’sthird-highest pay-out ratio.

Investec noted, however,that Aviva would shortlyreceive £1bn from the salein June of its RAC roadsiderescue business.

Other insurers and banksfound support as analystslined up to argue that thesector had fallen too far.

Legal & General rallied6.4 per cent to 97½p whilePrudential took on 2.7 percent to 561p as DeutscheBank kept “buy” advice.

Barclays was up 6.8 per

cent to 156p. UBS cut earn-ings forecasts to reflect aweak performance ininvestment banking butargued that the stockremained “significantlyundervalued” at just 0.4times tangible book value.

Volatility remained theonly trend in the widermarket with the FTSE 100turning a 1.8 per centopening loss into a 1.6 percent gain by midday.

The index eventually set-tled up 0.5 per cent, or 22.56points, to 5,089.37.

A sell-off among preciousmetals led silver minerFresnillo to the top of theblue-chip fallers, down 6.9per cent to £15.24. RandgoldResources was off 2.8 percent to £61.70 and AfricanBarrick Gold dropped by12.2 per cent to 500p.

Aquarius Platinum fell7.5 per cent to 177p afterUBS started coverage witha “neutral” rating.

Among metal groups,Ukraine iron ore producerFerrexpo lost 4.5 per cent to283¼p. Weir Group, a sharpfaller last week, rallied3.6 per cent to £16.01.

LONDON

Banks drive rebound onoptimism over debt solutionEUROPE

Erste Group Bank


Share price (€)

Jan Sep201115

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EuroAgainst the dollar ($ per €) Three-month ($’000 per tonne)

Copper price

Jul 2010 Sep20116.0

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9.5

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Jul Sep20111.34

1.36

1.38

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1.44

1.46

◄ The euro touched aneightmonth low againstthe dollar beneath $1.34– before staging a partialrecovery – amid freshconcerns about theeurozone sovereign debtcrisis

► Copper briefly sankbelow $7,000 a tonne forthe first time in 15months amid persistentworries about eurozonedebt and the outlook forthe global economy

Equities rally amid hopes for policy action

By Dave Shellock

US and European stocksrebounded from last week’ssharp sell-off as investorsweighed up the chancesof eurozone policymakerstaking decisive action totackle the region’s sover-eign debt crisis.

Weekend meetings of theInternational MonetaryFund produced little in theway of concrete develop-ments, although reportssuggested that the Euro-pean Union rescue fundcould be given muchgreater firepower and that

banks could be given sub-stantial capital injections tohelp them deal with aGreek default by the end ofthe year.

But choppy trading condi-tions in equity marketsunderlined scepticism thatsuch steps were achievable.

By midday in New York,the S&P 500 had rebounded1 per cent after a 6.5 percent slide last week,although it spent the morn-ing swinging in and out ofpositive territory.

The Eurofirst 300 indexgained 1.8 per cent after its4.7 per cent tumble over theprevious five sessions.

“Stocks were lookingtechnically oversold, so it isnatural for them to have apull back here,” said Kath-leen Brooks, at Forex.com.

“But without more detailson the new EU rescue fund,as well as a miracle to get

something of this size intoproduction, then we mightnot have a sustained recov-ery in the near-term.”

Jennifer McKeown, atCapital Economics, warned

that there were at leastthree reasons not to soundthe “all clear” on the euro-zone just yet.

“First, policymakers are along way from consensus

and the plans might nevercome into effect. Second,the new plans do not seemto allow for debt write-offsby countries apart fromGreece. Third, and finally,

the plan does nothing toaddress the fundamentalcompetitiveness problemsthat the peripheral andsouthern economies face.”

Meanwhile, there wasmuch talk that the Euro-pean Central Bank mightdiscuss cutting interestrates at its policy meetingnext week as well as con-sider further non-standardmeasures.

“Since the September gov-erning council meeting, sur-vey evidence suggested thatthe Emu economy is set tostagnate in the second halfof the year but – in ourview – this is not enoughfor the majority of ECBmembers to announce thereversal of its recent [rate]hikes,” said Annalisa Piazzaat Newedge Strategy.

“We still expect the ECBto continue in the directionof non-standard measures

first, in order to supportliquidity.”

Eurozone concerns helpeddrive the euro to an eight-month low beneath $1.34against the dollar and a 10-year trough against the yen.

However, the single cur-rency trimmed its losses asthe session wore on.

US and German govern-ment bonds fell back asstocks rallied. The yield onthe 10-year US Treasurybond was up 6 basis pointsto 1.89 per cent while theBund yield rose 8bp to 1.82per cent.

German debt prices werealso hurt by the latest sur-vey of domestic businessconfidence. The headline Ifoindex eased to a 15-monthlow of 107.5 in Septemberfrom 108.7, although thedecline was not as big assome had feared.

“Overall, the survey

points to a German econ-omy that is losing underly-ing growth momentum ifnot, admittedly, yet slidinginto recession,” said ChrisScicluna, at Daiwa CapitalMarkets.

There was a broad tight-ening of European creditdefault swap spreads withthe Markit iTraxx SovXindex of 15 western Euro-pean sovereign creditsdown 6bp at 352bp.

Commodity prices werealso volatile. Copper brieflyfell below $7,000 a tonne toa 15-month low but pulledback above that level whileBrent oil swung through anear-$2 range and was flatat $104 a barrel in latetrade.

Gold hit a low of $1,534 anounce before rallying morethan 5 per cent to $1,612,still down 1.8 per cent onthe day.

GLOBAL OVERVIEW

Euro hits 8monthlow against dollar

European CDSspreads tighten

Source: Thomson Reuters Datastream Markets updated at www.ft.com/markets

FTSE Eurofirst 300 indexFTSE 100 indexS&P 500 index

Aug Sep2011 Aug Sep2011 Aug Sep2011 Aug Sep2011

Nikkei 225 Average

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4800

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Latest

Changeon day

+0.87%

Changeon day

+0.45%Changeon day

+1.75%

Changeon day-2.17%● US equities

Berkshire Hathaway rosesharply after announcingplans for a share buyback,while the broader marketsaw choppy trading asparticipants weighed up theodds of fresh policy action toease the eurozone debt crisis

● UK equitiesBanks and insurers gainedground in an extremelyvolatile session as investorstook the view that bothsectors looked oversold.However, mining stocks lostground as metals pricesweakened

● European equitiesStrong gains for financialstocks helped theEurofirst 300 rebound fromlast week’s selloff amidhopes that policymakerswould take fresh action totackle the eurozonesovereign debt crisis

● Asian equitiesThe Nikkei closed at a2½year low as the regionsuffered a broad selloff.Hong Kong fell 1.5 per cent,with Ping An tumbling amidtalk that HSBC was sellingits stake in the insurer, whileBangkok shed 5.7 per cent

Citigroup and BofA make groundas financials spearhead advanceBy Ajay Makan in New York

A moderate rally in bankstocks, which sufferedheavy selling last week,pushed Wall Street into pos-itive territory on Monday.

Financials in the S&P 500rose 2 per cent by midday,up more than any othersector. Citigroup rose 3.9per cent to $25.96 andJPMorgan was up 3.3 percent to $30.57. Bank ofAmerica underperformedits peers despite rising1.7 per cent to $6.42.

Regional banks performedparticularly strongly, withHuntington Bancshares up4.6 per cent to $4.81 andZions Bancorp rising 3.3 percent to $15.32.

The broad S&P 500 wasup 1 per cent to 1,147.93,although home sales dataand the Dallas and ChicagoFed surveys of businessactivity all showed month-on-month declines.

Colin Cieszynski, chiefstrategist at CMC Markets,said traders had beencheered by the weekendIMF meetings on the euro-zone debt crisis. Althoughno clear plan of actionemerged, politicians “seemto have finally realised theconsequences of inaction on

global markets and econo-mies,” Mr Cieszynski said.

Gains for big bankspushed the Dow JonesIndustrial Average up 1.5per cent to 10,929.54, but theNasdaq Composite index,which has a lower weight-ing of financials, and whosebank stocks tend to besmall domestic lenders,lagged behind, up only 0.3per cent to 2,489.89.

Berkshire Hathawayshares rose 5.6 per cent to$105,927, after Warren Buf-fett’s company announcedit would use some of its$48bn cash hoard to repur-chase shares. The buy-backprogramme allows forunlimited purchases as longas the stock is trading at apremium of less than 10 percent of book value, and thecompany’s cash pile

remains above $20bn.Netflix fell 0.5 per cent to

$128.73, despite reports of adeal with DreamWorks Ani-mation to stream the stu-dio’s content. Netflix’sshare price has fallen bymore than 50 per cent inrecent weeks after it brokeoff negotiations to renew acontent contract with theStars cable network, and amove to separate its stream-ing and DVD delivery busi-ness lost it up to 1m sub-scribers.

Expedia, the online travelcompany, jumped 2.7 percent to $27.90 after PiperJaffray analysts upgradedthe stock to “buy”, arguinginternational bookingscould account for 50 percent of revenue by 2013.

Clorox Company, thecleaning products manufac-

turer, was the biggest fallerin the S&P 500, down 4.5 percent to $66.25, after investorCarl Icahn withdrew hisnominees to the board ofdirectors, citing shareholderresistance to his attemptedbuy-out of the company.Clorox had been up almost10 per cent for the yearbefore Monday on expecta-tions of a takeover.

Wynn Resorts was set forits fifth consecutive day oflosses, down 4.5 per cent to$132.50 at midday.

But with the S&P 500down 17 per cent from itsApril 29 peak, most analystson Monday were discussingthe probability of a bearmarket and how to positionfor it.

Sam Stovall, chief equitystrategist at Standard &Poor’s, noted that in theS&P 500’s 12 bear marketssince 1946 the average peakto trough fall has been33 per cent, which wouldtake the benchmark indexas low as 900 points in abear market.

Adam Parker, MorganStanley’s US equity strate-gist, said the high correla-tion among sectors in theS&P 500 leaves few obviousdefensive plays. Less than aquarter of healthcare stocksand only half of consumerstaple stocks have a correla-

tion to the index of lessthan 0.9. The 80 per cent ofutility stocks, which areexhibiting low correlationto the S&P 500, may be thebest bet for investorsexpecting the market toenter bear territory.

But, Mr Parker warned,“low beta stocks have seena recent increase in tradingvolume relative to high betastocks”, which has drivenup prices, so investorswould have to pay a priceto buy into defensivestocks.

Two less intuitivecandidates for defensiveplays are exchanges andbrokers. Exchanges haveseen trading volumes spikeduring recent marketvolatility, which hasincreased revenue. Severalanalysts have recommendedbuying into the sector, andNasdaq OMX, CME Groupand Intercontinental-Exchange have all outper-formed the S&P 500 sinceJuly 25.

On the day, Nasdaq OMXwas 0.3 per cent higherat $24.47, CME Grouphad gained 0.7 per centto $259.83 andIntercontinentalExchangehad risen 0.4 per cent to$122.58.

Biggest movers, Page 24

WALL STREET

Key indicators


Share price ($)Netflix

Jan Sep2011100

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300 Day’sIndices Close change

S&P500 1147.56 +11.13

DJIndustrials 10921.94 +150.46

NasdaqComp 2485.39 +2.16

Russell2000 656.06 +3.63

VIX 41.33 +0.08

US10yrTreasBd 1.85 +0.04

US2yrTreasBd 0.22 +0

Euro falls after G20 debateCURRENCIES

By Peter Garnham

The euro hit an eight-month low against the dol-lar and a 10-year troughagainst the yen as worriesover the eurozone sovereigndebt crisis mounted.

The single currency fellto a low of $1.3361 againstthe dollar, its weakest levelsince January, before recov-ering some poise to standdown 0.2 per cent at $1.3470by midday in New York.

The single currency alsodropped 0.4 per cent to a10-year low of Y102.90against the yen and was 0.7per cent weaker at £0.8669against the pound.

The euro suffered after ameeting of G20 finance min-isters over the weekendfailed to provide any fur-ther clarity over solving theregion’s debt problems,

raising concerns thatGreece was set to default onits obligations.

Lee Hardman, of Bank ofTokyo-Mitsubishi UFJ, saida timely and effective planthat attempted to get a gripon the eurozone sovereigndebt crisis was required tohelp reassure investors.

“With the advanced econ-omies already appearing tobe heading into recession,time is not on the authori-ties’ side as the lack of pol-icy action is reinforcing thedownward spiral,” said MrHardman. “The currentstage of the eurozone debtcrisis appears to be headingtowards a crescendo withthe safe haven currencies ofthe yen and US dollar out-performing as investorscontinue to heavily liqui-date risky positions.”

The dollar eased 0.2 percent to Y76.38 against theyen and was 0.5 per cent

weaker at $1.5540 againstthe pound.

Commodity-linked curren-cies remained under pres-sure after a sharp sell-offlast week on heighteningworries over global growth.

The Australian dollar fell0.7 per cent to $0.9712against the US dollar, itsweakest level since Decem-ber 2010, and was 0.9 percent weaker at Y74.25against the yen.

Elsewhere, growth con-cerns continued to weigh onAsian currencies.

The South Korean wondropped 1.5 per cent to a13-month low of Won1,182.00against the dollar, theMalaysian ringgit fell 0.5per cent to a 13-monthtrough of M$3.1802 and theTaiwan dollar was 0.5 percent weaker at T$30.545.

Currency prices, Page 25www.ft.com/currencies

SEPTEMBER 27 2011 Section:Markets Time: 26/9/2011 - 20:10 User: kallmanng Page Name: WSM2 EUR, Part,Page,Edition: EUR, 28, 1

FOREIGN EXCHANGEFINANCIAL TIMES SPECIAL REPORT | Tuesday September 27 2011

www.ft.com/foreignexchangesept2011 | twitter.com/ftreports

When the goinggets tough,r o u g h e d - u pinvestors turn

to the foreign exchangemarkets.

As concerns have risenregarding the world’s devel-oped economies, volumeson currency markets havesurged to fresh highs.

Investors have had muchto contend with over thepast few months. A down-grade of US governmentdebt, concerns over theeurozone financial crisisand currency interventionfrom Japan and Switzerlandhave all helped increasevolatility on world financialmarkets.

Once again, currencymarkets have acted as thepressure valve for the glo-bal financial system.

Starting on Mondaymorning in New Zealand,foreign exchange marketsstay open 24 hours a dayuntil closing on Friday inthe US, giving investors anopportunity to hedge their

exposure or take on freshmacroeconomic bets.

The current situation,although not yet asextreme, echoes the after-math of the 2008 credit cri-sis, when the deep liquidityin the world’s largest finan-cial market gave investors alifeline as others seized up.

Sophia Drossos, senior

investor on the globalmacro and asset-allocationteam at Morgan Stanley,the US investment bank,says the currency market isan ideal place to expressmacro views in times oftrouble, whether they aredirectional or a hedge.

Currency trading soars amid stressGlobal financialvolatility turnsinvestors to foreignexchange, saysPeter Garnham

Continued on Page 3

8 FINANCIAL TIMES TUESDAY SEPTEMBER 27 2011


ContributorsPeter GarnhamCurrencies Correspondent

Jennifer HughesLex Writer

Neil DennisMarkets Reporter

Michael MacKenzieUS MarketsCorrespondent

Josh NobleEmerging Markets Editor

Izabella KaminskaFT Alphaville Reporter

Martin BriceCommissioning Editor

Jearelle WolhuterLiz DurnoSubeditors

Steven BirdDesigner

Andy MearsPicture Editor

For advertising, contact:Ceri Williams on:+44 20 7873 6321email:[email protected] Spain on:+44 20 7872 3197email:[email protected]

Inside this issue

Is the renminbi the next safe bet?GO EAST Investors would love to get theirhands on more of the Chinese currency, butlimited access means it is unlikely to becomethe global unit of choice soon Page 4

Silver lining for the dollarRESERVE CURRENCY Despite poorperformance and a longterm downwardtrend, no rivals have emerged to challengethe US money unit’s supremacy Page 4

Any port in a stormSAFE HAVENS Traders are consideringalternative investments such as theNorwegian krone and the Australian dollar,but they are finding them wanting Page 6

It has been a good year for retailSTRONG GAINS This oncedisadvantagedmarket looked set to suffer from new,stricter regulation but it has fosteredgrowth in this sector instead Page 7

More on FT.comCurrency warsNeil Dennis explores thecomplicated fallout fromfluctuations in foreignexhange

Living with francSwiss consumers areadapting to a strongcurrency but it is harderfor business, writesIzabella Kaminska

Front Page Illustration MEESON

Foreign Exchange

The euro remains inthe spotlight as theeurozone debt crisisthreatens to derail

the single currency, push-ing some to question itscontinued existence.

The euro remained resil-ient to the debt crisis overthe summer, trading in arelatively narrow range of$1.40-$1.45 against the dollarsince May.

But sentiment turnedagainst the single currencyas traders returned fromtheir summer breaks. Fearsover a possible debt defaultin Athens and the resultingeffects on the eurozonebanking system had a nega-tive influence.

Adding to the pressurewas a U-turn from the Euro-pean Central Bank, whichabandoned its hawkishmonetary policy stance atits September meeting, withJean-Claude Trichet, ECBpresident, warning ofheightened downside risksto the eurozone economy.

On September 12, theeuro dropped to a seven-month low of $1.3499against the dollar and alsotouched a 10-year troughagainst the yen and a six-month low against thepound.

The fall sparked a reac-tion that allowed it toregain some poise, afterGermany and France reas-sured investors.

Angela Merkel, theGerman chancellor, andNicolas Sarkozy, the Frenchpresident, put out a state-ment stressing they wereconvinced that Greece’sfuture lay in the eurozone,after a conference call withGeorge Papandreou, theGreek prime minister.

This lessened fears thatthe country would defaultand raised hopes thatAthens would receive freshrescue funding from theInternational MonetaryFund and its Europeanpartners.

The euro received a fur-ther boost after centralbanks joined forces to pro-vide dollar liquidity, a movethat could ease fundingpressure on Europeanbanks.

But not all observers viewthe events so positively.

Neil Mellor, a currencystrategist at Bank of NewYork Mellon, says there hasbeen a subtle shift in the

Franco-German approach toGreece amid growing talkof an “inevitable” defaultby Athens.

He says the fact that MsMerkel and Mr Sarkozy saidthey were “convinced” thatGreece’s future lay in theeurozone implied its mem-bership was in question.

“An ostensibly positivestatement about Greece’splace in the eurozone mightactually be seen as a starkadmission by its two largestmembers that Greek mem-bership cannot be guaran-teed for the simple reasonthat the EU cannot guaran-tee the country will not gobust,” says Mr Mellor.

However, Camilla Sutton,chief currency strategist atScotia Capital, is of theopinion that while lowgrowth in the eurozone, fis-cal austerity measures andworries over the bankingsector have raised concernsabout the future of Euro-pean monetary union andput pressure on the euro,those fears should subsidein the longer term.

That is because theframework of Europeanmonetary union offerslimited options regardinga potential break-up,given that a country can

voluntarily negotiate to exitthe euro, but cannot beexpelled.

According to Ms Sutton, avoluntary exit by eitherGermany or Greece ishighly unlikely. For Ger-many, an exit is likely toleave Berlin with a strongercurrency that could hurtexports, while a departurefrom Athens would onlyexacerbate its debt prob-lems. Ms Sutton says ifEuropean policymakers can

successfully deliver thatmessage, pressure on theeuro could ultimately ease.

“These fundamentalassumptions, if they canbe communicated, shouldreduce the possibility of theworst case scenario forEuropean monetary union,”she says.

Others remain less con-vinced, however.

Mansoor Mohi-uddin,managing director of

foreign exchange strategyat UBS, the Swiss bankinggroup, says that even if thestructural issues overGreece and European bankswere to be resolved, the sin-gle currency still facescyclical pressure as growthin the region slows.

He says figures are likelyto show the impact of theglobal slowdown hurtingmanufacturing sentiment inthe eurozone, which islikely to shift investor focuson to the ECB policy meet-ing at the start of October.

That will be Mr Trichet’sfinal policy meeting afterhis eight year term as ECBpresident.

“He has the choice of cut-ting interest rates or leav-ing the decision to his suc-cessor, Mario Draghi, inNovember,” says Mr Mohi-uddin. “The risk of the ECBstarting to reduce interestrates from 1.5 per cent isthat it would push the eurolower.”

The single currency islikely to face a difficultautumn. Of course, with noother major central banklooking close to tighteningmonetary policy, the chal-lenge for investors consider-ing abandoning the euro iswhere to put their money.

Fear of Greek defaultshakes euro’s stabilityMonetary unionPeter Garnhamlooks at the singlecurrency’s future

Nicolas Sarkozy and Angela Merkel are ‘convinced’ Greece’s future is in the eurozone Getty

There are limitedoptions regarding apotential breakupof Europeanmonetary union

FINANCIAL TIMES TUESDAY SEPTEMBER 27 2011 7

Foreign Exchange

It has been quite a year forthe retail foreign exchangemarket.

In August 2010, the Com-modity Futures TradingCommission, the US regula-tor, announced a number ofnew rulings pertaining toforeign exchange providers,among them a compulsoryminimum capital buffer of$20m, as well as a clamp-down on the leverage pro-vided to customers.

While retail clients usedto be able to count on asmuch as 200 to one leveragefrom brokers, in the pastyear they have had to getused to ratios of no morethan 50 to one – somethingthat has had an immediateimpact on the number oftransactions being pro-cessed by brokers. Capitalrequirements, meanwhile,have led to mass consolida-tion across the industry.

“The foreign exchangedealer category has becomethe most heavily encum-bered type of financial mar-ket firm today, from a regu-latory perspective,” saysDrew Niv, chief executive ofFXCM, the retail currencytrader. “That’s why you’veseen a huge shrinkage inthe industry. There are nowdozens of names, instead ofhundreds.”

Some well-known nameshave disappeared from themarket altogether, whileweaker institutions havehad no choice but to beabsorbed into the remain-ing strong hands.

“It’s been a regulatoryearthquake, and in the nextyear you will see moreaftershocks and more firmsgoing out of business,” MrNiv predicts.

For those who were ableto ride out the storm, it hasnot been so bad. Almostimmediately, they havebenefited from increasedmarket share, while thetemporary sting fromreduced customer flows is,in the long run, expected todeliver a much more stablegroup of customers.

With reference to the reg-ulations, “overall, it’s defi-nitely a positive for theindustry, and positive forthe customer,” says Saman-tha Roady, founding part-ner of Gain Capital, the US-based company that runsForex.com, an online trad-ing site.

“In the beginning, cus-tomers were coming in andrelying on that leverageand now you’re seeing amuch wider customerbase,” she says.

That means those clientswho are left are at leastlikely to stick around forlonger.

“The previous higher-leverage model was detri-mental to the customer, butcustomers couldn’t helpthemselves. Churn didn’toccur because customerswere disaffected, butbecause they went bank-rupt,” says Harpal Sandhufounder of Integral, a for-eign exchange technologyfirm. “The new rules shiftthe market from a short-term gambling model to alonger term one.”

Against the backdrop ofan increasingly volatile for-eign exchange market – inan area where more volatil-ity brings more opportunity– as well as low expectedreturns from more conven-tional asset classes, mostbrokers say they are confi-dent the industry will con-tinue to grow despite thecurrent regulatory blip. For-eign exchange, they pointout, is now an attractivealternative to equities.

“Retail foreign exchangeis now about 10 per cent ofthe overall market, which ispretty amazing,” saysGain’s Ms Roady. “Theoverall market is worthabout $4,000bn a day andthat will continue to grow.”

Participants are nowmore sophisticated andknowledgeable than ever,too.

Whereas retail was onceconsidered disadvantagedcompared with professionaltrading firms or institutionsin terms of the service andrates received from brokers,this is no longer the case.Not only are retail quotescompetitively priced, thereis little or no disadvantagewith respect to the widermarket.

It is a response to retaildemand for an ever moreequal footing, but it is alsobecause of the technologicaltools which have becomeavailable to the sector.

“What made equities sobig with people, was youhad this democratisationwhich gave [them] the sameresources as a professionalfund manager,” says MrNiv at FXCM. “Those toolsare now here in foreignexchange.”

Most retail platforms, forexample, support the meansto plug in automated trad-ing packages available fromspecialist vendors. Thesecan either be run as theyare or personalised. Eitherway, the business for theseoff-the-shelf algorithms isbooming, say market partic-ipants.

“The tools available areso empowering that themarket is full of institu-tional traders who have lefthedge funds and banks andopened up shops of theirown,” says Mr Sandhu of

Integral. “We’ve beenhosting many of theseentrepreneurial start-ups to help these guysbuild their own systemsmanaging their own cap-ital.”Large foreign-exchange

dealing banks such asCiti, which have tradi-

tionally not marketedthemselves to the

retail sector,have been

quick to pick up on thetrend.

“Just this month, we havelaunched a product calledTradeStream, aimed at smallinstitutions such as brokersand hedge funds,” says San-jay Madgavkar, head of mar-gin foreign exchange tradingat Citi. “Rather than gothrough intermediaries, youcan deposit cash marginwith us and get exception-ally tight pricing.”

New regulationsConsolidation andeasier participationdrive growth, saysIzabella Kaminska

’What made equities so bigwas democratisation.Those tools are now herein foreign exchange’

Drew Niv,Chief executive of FXCM

Oncedisadvantaged retail sector expands quickly


Foreign Exchange

“It’s liquid, it trades24 hours a day and youdon’t get short-selling bansin currency markets,” shesays. “They can be efficientplaces to obtain tail-riskprotection.”

Icap, the world’s largestinter-dealer broker, repor-ted that daily volumes hit arecord on August 4, andcontinue to remain high.

But it is not just in timesof stress that investors turnto the currency market. Itis, after all, the lifeblood ofinternational trade – whatone senior banker refers toas the “internet” of the glo-bal financial system.

Indeed, after a slowdownin activity after the finan-cial crisis of 2008, volumeson the foreign exchangemarket bounced backstrongly.

Although the fragmentednature of the currency mar-ket makes collating datadifficult, the latest compre-hensive survey from theBank for International Set-tlements, the central bank-ers’ central bank, showeddaily turnover in foreignexchange rose from$3,300bn in April 2007 to$4,000bn in April 2010.

Much of this growth hasbeen put down to the rise ofalgorithmic trading, asimprovements in technol-ogy have allowed investorsto use computer-drivenmodels more extensively totrade on foreign exchangemarkets.

Retail foreign exchangevolumes have also surgedhigher, as improving tech-nology has given individu-als access not just to themeans with which to trade,but also the information onwhich to base their deci-sions.

While regulatory changeshave put a brake on some ofthe growth, many see thesector continuing to expandin the years ahead.

Asian reserve managershave also become increas-ingly important players inthis market, as attempts byauthorities in the region toslow the appreciation oftheir currencies against thedollar has led to a largerise in their foreignexchange stockpiles.

Robin Poynder, head

of Europe, Middle East andAfrica treasury at ThomsonReuters, says elevated inter-est in emerging-market cur-rencies has driven growth,as investors, faced withnear-zero interest rates indeveloped economies havelooked for yield.

Among the currencies ofdeveloped nations, the Aus-tralian dollar has also seengrowing interest, thanks toits commodity-linked statusand relatively attractiveyields.

Mr Poynder remains con-fident that interest inforeign exchange willcontinue, despite the poten-tial for a slowdown in thedeveloped world, astrade in developing marketsexpands.

“The need for currenciesto fund real trade flows con-tinues unabated. Trade isstill growing and the globaleconomy is still expand-ing,” he says. “Developingmarkets are relativelystrong.”

A notable bright spot hasbeen the development of theoffshore renminbi markets.The speed of China’s pushto internationalise its cur-rency has taken manyobservers by surprise.

Although trading vol-umes have been relativelymodest compared with therest of the market so far,few dispute that the ren-minbi is set to develop intoone of the world’s signifi-cant reserve currencies.

Meanwhile, the industryis expecting authorities toretain their “light touch”regulatory approach to thecash foreign exchange mar-ket, even as derivativessuch as options and non-deliverable forwards aremoved on to exchanges.

The spot foreignexchange market has, afterall, proved its resilience intimes of turmoil.

Banks remain optimisticabout further growth in thesector. For most institu-tions, it is a core businessthat delivers strong returnson equity, but requires con-tinued investment to keepup with technological inno-vations.

“We are extremely posi-tive about foreignexchange over the

next few years,”says Zar Amro-

lia, global head of foreignexchange at Deutsche Bank.

“Competition will con-tinue to intensify You haveto think about the strategicchanges that will drive thebusiness over the comingyears,” he says.

Mr Amrolia continues:“Equally you have toget your infrastructuredealing in microseconds,as algorithmic tradingincreases. It’s like runninga marathon but at the pace

of Usain Bolt [thesprinter].”

Many expect the domi-nance of large banks to con-tinue.

“The importance of scalehas increased,” says MikeBagguley, head of foreignexchange at Barclays Capi-tal, the investment bank.

He says the necessaryinvestment in informationtechnology and in offering afull range of productsacross emerging markets,

options, structured prod-ucts and research is not forthe faint-hearted.

“It is not the sort of busi-ness that you can takelightly.”

Foreign exchange camethrough the financial crisiswith its reputation en-hanced. Trade continues asother markets buckle. Fearsover the global economycould put it back in thespotlight, but history sug-gests it will pass the test.

Currency trading volumes soar amid global stressContinued from Page 1

Foreignexchange

remainsa good

option forbrokers

Interest in foreignexchange willcontinue, as tradein developingmarkets expands


Foreign Exchange

It did not take long.As soon as tradersaccepted the Swisswere serious about

defending their currency,they set about seeking newhavens.

Since the Swiss actedwith market-stunning forceon September 6, promisingto sell as many francs asneeded to ensure the eurodid not fall below SFr1.20,the euro has jumped morethan 10 per cent.

So-called havens have twoattractions for currencyinvestors when markets areas stormy as they havebeen recently.

First, that they will offerthe shelter their nameimplies. Second, and cru-cially, that they will enticeothers to follow suit, pro-ducing a momentum-build-ing trade that delivers prof-its for the early movers.

In the country hostingthe inflows, the effects canbe lethal for exporters andthe overall health of theeconomy. The Swiss franchad gained 20 per centagainst the euro, its mostimportant trading partner,to its August 10 peak.

Early market efforts tofind new havens after theSwiss move centred onScandinavia, namely Swe-den and Norway. Watcherscited the countries’ rela-tively strong fiscal positionsand their political distancefrom the eurozone crisis.

In less than two days, theNorwegian krone jumpedmore than 2.5 per cent to itsstrongest level in more thaneight years against theeuro, while its Swedishcounterpart added 2 percent for a three-monthpeak.

However, it took only afew more days before poli-cymakers began emphasis-ing the small size of theirmarkets and warning thatthey too could take actionshould inflows heat up.Investors got the message.

“There’s a huge focus on

risk right now,” says PaulBednarczyk, a strategist at4Cast, the consultancy.

“If you want to run atrade, you’ve got to explainto risk and compliance thatyou want to be long, say,Norway. They start askingyou how big the market is,then they Google Norwaynews and there’s the cen-tral bank governor warninghow small his market it andhow it could get messy.”

The haven search is notlimited to European curren-cies. Ray Attrill, head of USforeign exchange strategyat BNP Paribas, the Frenchbank, believes the Austral-ian dollar has good havenpotential.

“You saw the money mar-kets beginning to price inAustralian rate cuts monthsago, but the Aussie wasn’treacting. Rate differentialshave tended to be a gooddriver of the currency, sowe think it does owe some-thing to safe-haven flows,”he says.

The Aussie has grownrapidly to become the fifthmost-traded currency in theworld, according to the tri-ennial survey of the marketconducted by the Bank forInternational Settlements.

However, at 7.6 per centof daily turnover, it is theleader of the second tierrather than a member ofthe top flight – behind thedollar (involved in 85 percent of all trades), the euro(39 per cent), the Japaneseyen (19 per cent) and ster-ling (13 per cent).

The Norwegian krone andits Swedish counterpartrank 13th and ninth respec-tively, at just 1.3 per centand 2.2 per cent of dailycurrency trading.

This leaves them vulnera-ble to sharp moves that cur-rency watchers often likento cinema-goers who enterthe theatre in small groups,but all try to rush out atthe same time. This wasevident last May whenGreece received its firstbail-out and Norway’skrone swung wildly, falling5 per cent in as many days.

“That just isn’t a real safehaven,” says Mr Attrill.

Other investors seem tobe coming to that conclu-sion and plumping for size.The more liquid a marketis, the less it is likely to be

rocked by the sort ofextreme moves investorsmost fear. That has ruledout the Japanese yen as ahaven, however, given thegovernment’s record onintervention to weaken itscurrency and the yen’s cur-rent proximity to its all-time high.

Most recently, the dollarhas been gaining rapidly,particularly against formeremerging-market favouritessuch as the South Koreanwon and the Brazilian real,suggesting investors areretreating to the more liq-uid markets in search ofshelter.

“The market has triedlots of other things butthese places are just notliquid enough to be a genu-ine haven,” says Mr Bed-narczyk. “This means theUS is once again acting as ahaven, because everyoneknows there will always bea market there.”

Investorsseek anyshelter ina stormHaven currenciesMarket realises sizematters as it turnsback to US, writesJennifer Hughes

Carry is dead Hopes for resurrection when market stabilisesBorrow low; invest high. The carrytrade – the currency market’sleveraged version of the basic buy/sellbusiness maxim – has been themarket’s most popular and longrunningtrade idea, writes Jennifer Hughes.

In essence, carry trades are assimple as that: borrow funds in acurrency with low interest rates andinvest the proceeds in currencies whereassets offer higher returns to collectthe “carry” between the two rates.

Popular with hedge funds and otherlarge institutional investors, theprinciple has also been picked up byretail investors, from Japan’s famed“Mrs Watanabe” (the typical housewifeinvestor who showed a penchant forselling yen in favour of Australian andNew Zealand dollars) to easternEuropean homebuyers who, precrisis,took out mortgages in Swiss francs toget lower rates, but have since seentheir repayments rocket as thecurrency has strengthened.

Popular funding currencies – theborrowing and selling leg – of the tradehave usually included the Japanese yen,the Swiss franc and the US dollar.

The exact size of the market isunknown, but so popular has it been,that estimates last year put its size in

outstanding deals at more than$1,000bn. This prompted regulators todenounce it, most notably Adair Turner,chairman of the UK’s Financial ServicesAuthority. He described the trade as“of zero value and potentiallydestabilising”, and said the world wouldbe “a better place” if the size of tradeswere reduced.

At the time – just over a year ago –policymakers were increasingly worriedabout the effect that the expectednormalisation of central banks’ interestrate policies, including eventual interestrate rises, might have on some of thebig macroeconomic bets placed byinvestors, such as carry trades.

Lord Turner, who has launchedattacks against targets including“socially useless” structured productssuch as collateralised debt obligations,need not have worried.

“Carry” has since been killed bysomething powerful than regulators’ ire– market forces, particularly the nearuniversal low interest rates amongmajor currencies.

“What isn’t a cheap funding currencythese days?” says Paul Bednarczyk,strategist at 4Cast consultancy. “Goingshort the Aussie is not a carry trade,but short everything else probably is.”

Australian 10year bonds carry yieldsof more than 4 per cent. Equivalent10year Japanese government debt,meanwhile, offers just under 1 per cent.

Last week, the US Federal Reservelaunched Operation Twist, selling shortdated bonds and buying longdatedones in an effort to keep longtermrates low. And the Bank of England hasbeen increasingly signalling it isconsidering further quantitative easing.

What has really damped carry tradeinvestors’ ardour, however, is marketvolatility. Carry bets, made withborrowed money, only work in stablemarket environments because sharpmovements decimate expected returns.

This, however, gives market watchersthe belief that the trades will returnwhen markets calm down once more.

“Carry is dead for now, but it’llresurrect itself phoenixlike whenvolatility dies down, because there’s stilla tremendous search for anythingoffering yield,” says Ray Attrill, head ofUS foreign exchange strategy at BNPParibas, the French bank.

“At the moment we’re living in fear,and thinking again about the returnof – not the return on – capital, butI’m confident carry will come backwhen volatility dies down.”

The carry trade has been dealt a blow by the volatility of the currency markets Getty

‘The market hastried lots of otherthings but they’rejust not liquidenough to be agenuine haven’


Foreign Exchange

In the midst of the glo-bal currency wars,China has stuck to itsguns. While specula-

tive hopes of rapid gains inthe renminbi have dimmed,China’s policy of steadyappreciation remains intact,prompting talk of a newsafe haven.

“As use of the renminbispreads globally, it couldbecome a safe-haven cur-rency, especially in a worldwhere the renminbi mightgain 2 or 3 per cent a yearagainst the dollar, while theSwiss franc may yield noth-ing,” says Patrick Law,head of greater China trad-ing at Barclays Capital inHong Kong.

Within Asia, the Singa-pore dollar and the Japa-nese yen have been the tra-ditional risk-aversion cur-rency plays. But, for thosewho can access it, the ren-minbi could soon join them.

“In recent months, we’ve

seen signs behind thescenes that the renminbi isbecoming a safe haven,”says Mitul Kotecha, head offoreign exchange strategyat Crédit Agricole Corpo-rate and Investment Bankin Hong Kong. “The crisismay actually accelerate theuse of the renminbi glo-bally.”

In August, Chinese con-sumer price inflation fell forthe first time in months, fol-lowing a period where theauthorities had briefly tol-

erated stronger gains in therenminbi. China has oftenused the exchange rate asone of its policy tools forcombating rising prices byreducing the cost ofimported food and fuel.

If inflation has decisivelypeaked, then appreciationmay move down a gear,though consensus pointsto steady gains of between

3 and 5 per cent a year.A greater worry for inves-

tors, however, would be anend to appreciation alto-gether. In 2008, in the midstof the global credit crunch,China responded to eco-nomic uncertainty by halt-ing the rise of the redback –instead resorting to a defacto peg against the USdollar.

With growing concerns ofa double-dip recession inthe US and Europe, couldChina do the same thingagain?

“In the worst-case reces-sion, there is a risk of areturn to the peg. Theexport sector still employs alot of people in China,” saysPuay Yeong Goh, foreignexchange strategist atCredit Suisse, the bankinggroup.

However, most analysts,including Mr Goh, believethings are different thistime.

“China is less inclined toreturn to the peg – we’re ata point where it would beseen as a big step back,”says Mr Kotecha. Thechanging nature of China’sinflation problem could alsobe a factor.

“In 2008, inflation peakedand then fell rapidly. Now,

inflation will remainsticky,” says Mr Law. “Onlyif China slows sharply willthe peg return, otherwisethe policy of steady appreci-ation will be maintained.”

For now, the main barrier

preventing the renminbifrom achieving safe-havenstatus is a lack of accessibil-ity for global investors.

“It has the potential tobe a safe haven, but that isfar from realised,” says

Chinese currencycould become thenext safe havenRenminbiInvestors arelooking east butaccess is a problem,says Josh Noble

Nicholas Kwan, head ofAsia research at StandardChartered Bank. “In practi-cal terms, there aren’tmany channels to get intothe renminbi, and liquidityremains too low.”

Hopes of rapidgains have dimmedbut China’s policyof steadyappreciationremains intact

The US dollar has beensteadily declining for morethan a decade. However,given the lack of viablerivals, its unique status asthe world’s reserve cur-rency is not under immedi-ate threat.

The dollar seems lockedinto a secular downtrendbecause of the dire long-term fiscal outlook for theUS and the fact that thecountry continues to run ahefty current-account defi-cit that is dependent onfunding from foreign inves-tors.

The rising tide of long-term debt led Standard &Poor’s, the rating agency, todowngrade the US from itstriple-A status in earlyAugust.

On a trade-weightedbasis, the dollar at its cur-rent value of 76.7, sits 35per cent below its high of120, set in July 2001. Therecord low of 71.66 (inMarch 2008) remains withinsight.

Helping keep the dollarabove its record low hasbeen the performance of theeuro, its principal rival inthe reserve-currency stakes.The euro has come underrenewed pressure, as thereis no sign of the region’ssovereign-debt crisis beingresolved.

“The euro’s problems areso deep that, while reservemanagers can factor in thatthe dollar will be around in10 years' time, they can’t besure about the composition

of the euro,” says AlanRuskin, strategist at Deut-sche Bank.

A big question for inves-tors is whether the dollarlooms as a long-term down-ward bet. With nominal USinterest rates close to zero,and likely to stay there forat least two more years, thedollar remains near recordlows against many rivals,but has already registered alarge decline.

“The dollar’s fundamen-tals have deteriorated sub-stantially and the countrystill has a sizeable current-account deficit in spite ofthe slowing economy,” saysMr Ruskin.

He adds: “One can makethe case that the dollarcould be seen as being over-valued, due to the currentaccount, but the threewords that counter that are:‘What’s the alternative?’”

This year, the Interna-tional Monetary Fund

released quarterly data onthe currency composition ofofficial foreign exchangereserves. For the first quar-ter of 2011, it showed thedollar’s share, excludingChina, has fallen to 60.7 percent for allocated reserves.That was down from 61.8

per cent a year earlier, and66.5 per cent in 2006.

Mr Ruskin says the 1 percent decline per year in thecurrency’s share of reserverepresents a “glacialchange” that “continues topaint a picture of reservemanagers struggling to find

places to hide beyond thedollar.”

But there is a risk thatthe S&P downgrade maycompel reserve managers toseek other currencies, suchas those from Australia,Canada, Norway and Swe-den, particularly as therecent safe haven, the Swissfranc, is now pegged to theeuro.

“In our view, the US sov-ereign downgrade probablybrought about an accelera-tion in the pace of reservediversification out of the USdollar and has helped sus-tain recent inflows intoemerging-market fixed-income markets, as inves-tors searched for new safehavens,” says David Woo,strategist at Bank of Amer-ica Merrill Lynch

“The consensus, espe-cially among long-terminvestors, is that even withthe US dollar at decadelows, it continues to face

serious headwinds,” headds.

The problem facingreserve managers is that noother currencies can rivalthe US in terms of size,liquidity and stability. At atime when the future of theeuro is being questioned,the transformation of Chinaand Brazil into viable rivalsremains many years away.

“There is a lack of alter-natives to the dollar as areserve currency,” says DanKatzive, foreign exchangestrategist at Credit Suisse,the investment bank.

“If you look around theworld, the euro has thedeep debt markets and legaltransparency, but not thedollar’s institutional longev-ity. China is an emergingreserve currency at somepoint, but is very far fromhaving the legal transpar-ency and institutional lon-gevity that could rival thedollar.”

Lack of rivals leaves dollar’s reserve status unchallengedUSThe currency maybe weakened, butit is not finished,reports MichaelMacKenzie

‘The euro is nolonger consideredthe naturalbeneficiary of theslow erosion of thedollar’s status’


Foreign Exchange

“The question is how fastthe renminbi achieves fullconvertibility. Will we stillneed such a safe haven infive years? I hope not.”

In Hong Kong, where resi-dents can purchase up to

Rmb20,000 ($3,134) a day,the amount of the currencyon deposit in the city’sbank accounts has soaredin the past year, reachingmore than Rmb550bn,or 10 per cent of the total

on deposit in Hong Kong.But the investment oppor-

tunities remain scarce. Dimsum bonds – the namegiven to renminbi-denomi-nated debt issued offshorein Hong Kong – cover only20 per cent of Chinese cur-rency on deposit.

In 2010, there were just 17dim sum bond issues, com-pared with 59 so far thisyear, according to Dealogic,the data provider.

Despite this rapid growthin issuance, supply hasbeen unable to keep upwith demand. As a result,such bonds are trading at

Lack of rivals leaves dollar’s reserve status unchallenged

The dollar may not be as strong as it once was, butit is still the reserve currency of choice Epa

Mr Katzive said otherhaven currencies, such asthe Canadian dollar andsterling, lack the depth

and liquidityof financialm a r k e t sthat arerequired toback ar e s e r v ecurrency.

The lat-est IMFd a t ashow the

abso luteholdings of

euros as allo-c a t e d

r e s e r v e sdropped to

€ 9 9 5 b n($1,361bn) in the

first quarter of2011, down from€1,024bn.

Mr Ruskin says it is anearly sign that“the euro is no longer con-sidered the natural benefici-ary of the slow erosion ofthe US dollar’s ‘premier’reserve status, as reservemanagers instead seek ref-uge outside the traditionalgroup of four currenciesthose of [US, EU, Brazil andIndia].”

Given the limitations ofsmaller currencies, someinvestors argue the timehas come for a more realis-tic appraisal of the marketand risk.

“We are heading to aworld where everyone willcreate a basket of curren-cies and people should for-get about the idea thatthere is a risk-free compo-nent in their portfolio,”says Axel Merk, presidentof Merk Investments.

The renminbi could turn intoa safehaven currency, if itbecomes more accessibleBloomberg

“very rich levels”, says MrGoh.

That could change ifinflation shows signs of fall-ing. the Chinese authoritieshave been wary of allowingmainland companies toraise funds at low interestrates in Hong Kong andrepatriate that moneyonshore.

For example, yields on arecent dim sum bond issuedby Unilever, the consumergoods group, was just 1.15per cent.

But in August, LiKeqiang, China’s vice-premier announced a quota

system to allow mainlandcompanies to raise up toRmb50bn in the dim summarket.

It coincided with the thirdrenminbi-denominated bondissue by the country’s min-istry of finance, seen as avote of confidence in thedim sum experiment.

“As inflation slows, weshould see more dim sumbond issuance,” says MrLaw.

“We are likely to see big-ger issues with longermaturity, which will helpmeet the demand for safe-haven investments.”


Foreign Exchange

In the midst of the glo-bal currency wars,China has stuck to itsguns. While specula-

tive hopes of rapid gains inthe renminbi have dimmed,China’s policy of steadyappreciation remains intact,prompting talk of a newsafe haven.

“As use of the renminbispreads globally, it couldbecome a safe-haven cur-rency, especially in a worldwhere the renminbi mightgain 2 or 3 per cent a yearagainst the dollar, while theSwiss franc may yield noth-ing,” says Patrick Law,head of greater China trad-ing at Barclays Capital inHong Kong.

Within Asia, the Singa-pore dollar and the Japa-nese yen have been the tra-ditional risk-aversion cur-rency plays. But, for thosewho can access it, the ren-minbi could soon join them.

“In recent months, we’ve

seen signs behind thescenes that the renminbi isbecoming a safe haven,”says Mitul Kotecha, head offoreign exchange strategyat Crédit Agricole Corpo-rate and Investment Bankin Hong Kong. “The crisismay actually accelerate theuse of the renminbi glo-bally.”

In August, Chinese con-sumer price inflation fell forthe first time in months, fol-lowing a period where theauthorities had briefly tol-

erated stronger gains in therenminbi. China has oftenused the exchange rate asone of its policy tools forcombating rising prices byreducing the cost ofimported food and fuel.

If inflation has decisivelypeaked, then appreciationmay move down a gear,though consensus pointsto steady gains of between

3 and 5 per cent a year.A greater worry for inves-

tors, however, would be anend to appreciation alto-gether. In 2008, in the midstof the global credit crunch,China responded to eco-nomic uncertainty by halt-ing the rise of the redback –instead resorting to a defacto peg against the USdollar.

With growing concerns ofa double-dip recession inthe US and Europe, couldChina do the same thingagain?

“In the worst-case reces-sion, there is a risk of areturn to the peg. Theexport sector still employs alot of people in China,” saysPuay Yeong Goh, foreignexchange strategist atCredit Suisse, the bankinggroup.

However, most analysts,including Mr Goh, believethings are different thistime.

“China is less inclined toreturn to the peg – we’re ata point where it would beseen as a big step back,”says Mr Kotecha. Thechanging nature of China’sinflation problem could alsobe a factor.

“In 2008, inflation peakedand then fell rapidly. Now,

inflation will remainsticky,” says Mr Law. “Onlyif China slows sharply willthe peg return, otherwisethe policy of steady appreci-ation will be maintained.”

For now, the main barrier

preventing the renminbifrom achieving safe-havenstatus is a lack of accessibil-ity for global investors.

“It has the potential tobe a safe haven, but that isfar from realised,” says

Chinese currencycould become thenext safe havenRenminbiInvestors arelooking east butaccess is a problem,says Josh Noble

Nicholas Kwan, head ofAsia research at StandardChartered Bank. “In practi-cal terms, there aren’tmany channels to get intothe renminbi, and liquidityremains too low.”

Hopes of rapidgains have dimmedbut China’s policyof steadyappreciationremains intact

The US dollar has beensteadily declining for morethan a decade. However,given the lack of viablerivals, its unique status asthe world’s reserve cur-rency is not under immedi-ate threat.

The dollar seems lockedinto a secular downtrendbecause of the dire long-term fiscal outlook for theUS and the fact that thecountry continues to run ahefty current-account defi-cit that is dependent onfunding from foreign inves-tors.

The rising tide of long-term debt led Standard &Poor’s, the rating agency, todowngrade the US from itstriple-A status in earlyAugust.

On a trade-weightedbasis, the dollar at its cur-rent value of 76.7, sits 35per cent below its high of120, set in July 2001. Therecord low of 71.66 (inMarch 2008) remains withinsight.

Helping keep the dollarabove its record low hasbeen the performance of theeuro, its principal rival inthe reserve-currency stakes.The euro has come underrenewed pressure, as thereis no sign of the region’ssovereign-debt crisis beingresolved.

“The euro’s problems areso deep that, while reservemanagers can factor in thatthe dollar will be around in10 years' time, they can’t besure about the composition

of the euro,” says AlanRuskin, strategist at Deut-sche Bank.

A big question for inves-tors is whether the dollarlooms as a long-term down-ward bet. With nominal USinterest rates close to zero,and likely to stay there forat least two more years, thedollar remains near recordlows against many rivals,but has already registered alarge decline.

“The dollar’s fundamen-tals have deteriorated sub-stantially and the countrystill has a sizeable current-account deficit in spite ofthe slowing economy,” saysMr Ruskin.

He adds: “One can makethe case that the dollarcould be seen as being over-valued, due to the currentaccount, but the threewords that counter that are:‘What’s the alternative?’”

This year, the Interna-tional Monetary Fund

released quarterly data onthe currency composition ofofficial foreign exchangereserves. For the first quar-ter of 2011, it showed thedollar’s share, excludingChina, has fallen to 60.7 percent for allocated reserves.That was down from 61.8

per cent a year earlier, and66.5 per cent in 2006.

Mr Ruskin says the 1 percent decline per year in thecurrency’s share of reserverepresents a “glacialchange” that “continues topaint a picture of reservemanagers struggling to find

places to hide beyond thedollar.”

But there is a risk thatthe S&P downgrade maycompel reserve managers toseek other currencies, suchas those from Australia,Canada, Norway and Swe-den, particularly as therecent safe haven, the Swissfranc, is now pegged to theeuro.

“In our view, the US sov-ereign downgrade probablybrought about an accelera-tion in the pace of reservediversification out of the USdollar and has helped sus-tain recent inflows intoemerging-market fixed-income markets, as inves-tors searched for new safehavens,” says David Woo,strategist at Bank of Amer-ica Merrill Lynch

“The consensus, espe-cially among long-terminvestors, is that even withthe US dollar at decadelows, it continues to face

serious headwinds,” headds.

The problem facingreserve managers is that noother currencies can rivalthe US in terms of size,liquidity and stability. At atime when the future of theeuro is being questioned,the transformation of Chinaand Brazil into viable rivalsremains many years away.

“There is a lack of alter-natives to the dollar as areserve currency,” says DanKatzive, foreign exchangestrategist at Credit Suisse,the investment bank.

“If you look around theworld, the euro has thedeep debt markets and legaltransparency, but not thedollar’s institutional longev-ity. China is an emergingreserve currency at somepoint, but is very far fromhaving the legal transpar-ency and institutional lon-gevity that could rival thedollar.”

Lack of rivals leaves dollar’s reserve status unchallengedUSThe currency maybe weakened, butit is not finished,reports MichaelMacKenzie

‘The euro is nolonger consideredthe naturalbeneficiary of theslow erosion of thedollar’s status’


Foreign Exchange

“The question is how fastthe renminbi achieves fullconvertibility. Will we stillneed such a safe haven infive years? I hope not.”

In Hong Kong, where resi-dents can purchase up to

Rmb20,000 ($3,134) a day,the amount of the currencyon deposit in the city’sbank accounts has soaredin the past year, reachingmore than Rmb550bn,or 10 per cent of the total

on deposit in Hong Kong.But the investment oppor-

tunities remain scarce. Dimsum bonds – the namegiven to renminbi-denomi-nated debt issued offshorein Hong Kong – cover only20 per cent of Chinese cur-rency on deposit.

In 2010, there were just 17dim sum bond issues, com-pared with 59 so far thisyear, according to Dealogic,the data provider.

Despite this rapid growthin issuance, supply hasbeen unable to keep upwith demand. As a result,such bonds are trading at

Lack of rivals leaves dollar’s reserve status unchallenged

The dollar may not be as strong as it once was, butit is still the reserve currency of choice Epa

Mr Katzive said otherhaven currencies, such asthe Canadian dollar andsterling, lack the depth

and liquidityof financialm a r k e t sthat arerequired toback ar e s e r v ecurrency.

The lat-est IMFd a t ashow the

abso luteholdings of

euros as allo-c a t e d

r e s e r v e sdropped to

€ 9 9 5 b n($1,361bn) in the

first quarter of2011, down from€1,024bn.

Mr Ruskin says it is anearly sign that“the euro is no longer con-sidered the natural benefici-ary of the slow erosion ofthe US dollar’s ‘premier’reserve status, as reservemanagers instead seek ref-uge outside the traditionalgroup of four currenciesthose of [US, EU, Brazil andIndia].”

Given the limitations ofsmaller currencies, someinvestors argue the timehas come for a more realis-tic appraisal of the marketand risk.

“We are heading to aworld where everyone willcreate a basket of curren-cies and people should for-get about the idea thatthere is a risk-free compo-nent in their portfolio,”says Axel Merk, presidentof Merk Investments.

The renminbi could turn intoa safehaven currency, if itbecomes more accessibleBloomberg

“very rich levels”, says MrGoh.

That could change ifinflation shows signs of fall-ing. the Chinese authoritieshave been wary of allowingmainland companies toraise funds at low interestrates in Hong Kong andrepatriate that moneyonshore.

For example, yields on arecent dim sum bond issuedby Unilever, the consumergoods group, was just 1.15per cent.

But in August, LiKeqiang, China’s vice-premier announced a quota

system to allow mainlandcompanies to raise up toRmb50bn in the dim summarket.

It coincided with the thirdrenminbi-denominated bondissue by the country’s min-istry of finance, seen as avote of confidence in thedim sum experiment.

“As inflation slows, weshould see more dim sumbond issuance,” says MrLaw.

“We are likely to see big-ger issues with longermaturity, which will helpmeet the demand for safe-haven investments.”


Foreign Exchange

“It’s liquid, it trades24 hours a day and youdon’t get short-selling bansin currency markets,” shesays. “They can be efficientplaces to obtain tail-riskprotection.”

Icap, the world’s largestinter-dealer broker, repor-ted that daily volumes hit arecord on August 4, andcontinue to remain high.

But it is not just in timesof stress that investors turnto the currency market. Itis, after all, the lifeblood ofinternational trade – whatone senior banker refers toas the “internet” of the glo-bal financial system.

Indeed, after a slowdownin activity after the finan-cial crisis of 2008, volumeson the foreign exchangemarket bounced backstrongly.

Although the fragmentednature of the currency mar-ket makes collating datadifficult, the latest compre-hensive survey from theBank for International Set-tlements, the central bank-ers’ central bank, showeddaily turnover in foreignexchange rose from$3,300bn in April 2007 to$4,000bn in April 2010.

Much of this growth hasbeen put down to the rise ofalgorithmic trading, asimprovements in technol-ogy have allowed investorsto use computer-drivenmodels more extensively totrade on foreign exchangemarkets.

Retail foreign exchangevolumes have also surgedhigher, as improving tech-nology has given individu-als access not just to themeans with which to trade,but also the information onwhich to base their deci-sions.

While regulatory changeshave put a brake on some ofthe growth, many see thesector continuing to expandin the years ahead.

Asian reserve managershave also become increas-ingly important players inthis market, as attempts byauthorities in the region toslow the appreciation oftheir currencies against thedollar has led to a largerise in their foreignexchange stockpiles.

Robin Poynder, head

of Europe, Middle East andAfrica treasury at ThomsonReuters, says elevated inter-est in emerging-market cur-rencies has driven growth,as investors, faced withnear-zero interest rates indeveloped economies havelooked for yield.

Among the currencies ofdeveloped nations, the Aus-tralian dollar has also seengrowing interest, thanks toits commodity-linked statusand relatively attractiveyields.

Mr Poynder remains con-fident that interest inforeign exchange willcontinue, despite the poten-tial for a slowdown in thedeveloped world, astrade in developing marketsexpands.

“The need for currenciesto fund real trade flows con-tinues unabated. Trade isstill growing and the globaleconomy is still expand-ing,” he says. “Developingmarkets are relativelystrong.”

A notable bright spot hasbeen the development of theoffshore renminbi markets.The speed of China’s pushto internationalise its cur-rency has taken manyobservers by surprise.

Although trading vol-umes have been relativelymodest compared with therest of the market so far,few dispute that the ren-minbi is set to develop intoone of the world’s signifi-cant reserve currencies.

Meanwhile, the industryis expecting authorities toretain their “light touch”regulatory approach to thecash foreign exchange mar-ket, even as derivativessuch as options and non-deliverable forwards aremoved on to exchanges.

The spot foreignexchange market has, afterall, proved its resilience intimes of turmoil.

Banks remain optimisticabout further growth in thesector. For most institu-tions, it is a core businessthat delivers strong returnson equity, but requires con-tinued investment to keepup with technological inno-vations.

“We are extremely posi-tive about foreignexchange over the

next few years,”says Zar Amro-

lia, global head of foreignexchange at Deutsche Bank.

“Competition will con-tinue to intensify You haveto think about the strategicchanges that will drive thebusiness over the comingyears,” he says.

Mr Amrolia continues:“Equally you have toget your infrastructuredealing in microseconds,as algorithmic tradingincreases. It’s like runninga marathon but at the pace

of Usain Bolt [thesprinter].”

Many expect the domi-nance of large banks to con-tinue.

“The importance of scalehas increased,” says MikeBagguley, head of foreignexchange at Barclays Capi-tal, the investment bank.

He says the necessaryinvestment in informationtechnology and in offering afull range of productsacross emerging markets,

options, structured prod-ucts and research is not forthe faint-hearted.

“It is not the sort of busi-ness that you can takelightly.”

Foreign exchange camethrough the financial crisiswith its reputation en-hanced. Trade continues asother markets buckle. Fearsover the global economycould put it back in thespotlight, but history sug-gests it will pass the test.

Currency trading volumes soar amid global stressContinued from Page 1

Foreignexchange

remainsa good

option forbrokers

Interest in foreignexchange willcontinue, as tradein developingmarkets expands


Foreign Exchange

It did not take long.As soon as tradersaccepted the Swisswere serious about

defending their currency,they set about seeking newhavens.

Since the Swiss actedwith market-stunning forceon September 6, promisingto sell as many francs asneeded to ensure the eurodid not fall below SFr1.20,the euro has jumped morethan 10 per cent.

So-called havens have twoattractions for currencyinvestors when markets areas stormy as they havebeen recently.

First, that they will offerthe shelter their nameimplies. Second, and cru-cially, that they will enticeothers to follow suit, pro-ducing a momentum-build-ing trade that delivers prof-its for the early movers.

In the country hostingthe inflows, the effects canbe lethal for exporters andthe overall health of theeconomy. The Swiss franchad gained 20 per centagainst the euro, its mostimportant trading partner,to its August 10 peak.

Early market efforts tofind new havens after theSwiss move centred onScandinavia, namely Swe-den and Norway. Watcherscited the countries’ rela-tively strong fiscal positionsand their political distancefrom the eurozone crisis.

In less than two days, theNorwegian krone jumpedmore than 2.5 per cent to itsstrongest level in more thaneight years against theeuro, while its Swedishcounterpart added 2 percent for a three-monthpeak.

However, it took only afew more days before poli-cymakers began emphasis-ing the small size of theirmarkets and warning thatthey too could take actionshould inflows heat up.Investors got the message.

“There’s a huge focus on

risk right now,” says PaulBednarczyk, a strategist at4Cast, the consultancy.

“If you want to run atrade, you’ve got to explainto risk and compliance thatyou want to be long, say,Norway. They start askingyou how big the market is,then they Google Norwaynews and there’s the cen-tral bank governor warninghow small his market it andhow it could get messy.”

The haven search is notlimited to European curren-cies. Ray Attrill, head of USforeign exchange strategyat BNP Paribas, the Frenchbank, believes the Austral-ian dollar has good havenpotential.

“You saw the money mar-kets beginning to price inAustralian rate cuts monthsago, but the Aussie wasn’treacting. Rate differentialshave tended to be a gooddriver of the currency, sowe think it does owe some-thing to safe-haven flows,”he says.

The Aussie has grownrapidly to become the fifthmost-traded currency in theworld, according to the tri-ennial survey of the marketconducted by the Bank forInternational Settlements.

However, at 7.6 per centof daily turnover, it is theleader of the second tierrather than a member ofthe top flight – behind thedollar (involved in 85 percent of all trades), the euro(39 per cent), the Japaneseyen (19 per cent) and ster-ling (13 per cent).

The Norwegian krone andits Swedish counterpartrank 13th and ninth respec-tively, at just 1.3 per centand 2.2 per cent of dailycurrency trading.

This leaves them vulnera-ble to sharp moves that cur-rency watchers often likento cinema-goers who enterthe theatre in small groups,but all try to rush out atthe same time. This wasevident last May whenGreece received its firstbail-out and Norway’skrone swung wildly, falling5 per cent in as many days.

“That just isn’t a real safehaven,” says Mr Attrill.

Other investors seem tobe coming to that conclu-sion and plumping for size.The more liquid a marketis, the less it is likely to be

rocked by the sort ofextreme moves investorsmost fear. That has ruledout the Japanese yen as ahaven, however, given thegovernment’s record onintervention to weaken itscurrency and the yen’s cur-rent proximity to its all-time high.

Most recently, the dollarhas been gaining rapidly,particularly against formeremerging-market favouritessuch as the South Koreanwon and the Brazilian real,suggesting investors areretreating to the more liq-uid markets in search ofshelter.

“The market has triedlots of other things butthese places are just notliquid enough to be a genu-ine haven,” says Mr Bed-narczyk. “This means theUS is once again acting as ahaven, because everyoneknows there will always bea market there.”

Investorsseek anyshelter ina stormHaven currenciesMarket realises sizematters as it turnsback to US, writesJennifer Hughes

Carry is dead Hopes for resurrection when market stabilisesBorrow low; invest high. The carrytrade – the currency market’sleveraged version of the basic buy/sellbusiness maxim – has been themarket’s most popular and longrunningtrade idea, writes Jennifer Hughes.

In essence, carry trades are assimple as that: borrow funds in acurrency with low interest rates andinvest the proceeds in currencies whereassets offer higher returns to collectthe “carry” between the two rates.

Popular with hedge funds and otherlarge institutional investors, theprinciple has also been picked up byretail investors, from Japan’s famed“Mrs Watanabe” (the typical housewifeinvestor who showed a penchant forselling yen in favour of Australian andNew Zealand dollars) to easternEuropean homebuyers who, precrisis,took out mortgages in Swiss francs toget lower rates, but have since seentheir repayments rocket as thecurrency has strengthened.

Popular funding currencies – theborrowing and selling leg – of the tradehave usually included the Japanese yen,the Swiss franc and the US dollar.

The exact size of the market isunknown, but so popular has it been,that estimates last year put its size in

outstanding deals at more than$1,000bn. This prompted regulators todenounce it, most notably Adair Turner,chairman of the UK’s Financial ServicesAuthority. He described the trade as“of zero value and potentiallydestabilising”, and said the world wouldbe “a better place” if the size of tradeswere reduced.

At the time – just over a year ago –policymakers were increasingly worriedabout the effect that the expectednormalisation of central banks’ interestrate policies, including eventual interestrate rises, might have on some of thebig macroeconomic bets placed byinvestors, such as carry trades.

Lord Turner, who has launchedattacks against targets including“socially useless” structured productssuch as collateralised debt obligations,need not have worried.

“Carry” has since been killed bysomething powerful than regulators’ ire– market forces, particularly the nearuniversal low interest rates amongmajor currencies.

“What isn’t a cheap funding currencythese days?” says Paul Bednarczyk,strategist at 4Cast consultancy. “Goingshort the Aussie is not a carry trade,but short everything else probably is.”

Australian 10year bonds carry yieldsof more than 4 per cent. Equivalent10year Japanese government debt,meanwhile, offers just under 1 per cent.

Last week, the US Federal Reservelaunched Operation Twist, selling shortdated bonds and buying longdatedones in an effort to keep longtermrates low. And the Bank of England hasbeen increasingly signalling it isconsidering further quantitative easing.

What has really damped carry tradeinvestors’ ardour, however, is marketvolatility. Carry bets, made withborrowed money, only work in stablemarket environments because sharpmovements decimate expected returns.

This, however, gives market watchersthe belief that the trades will returnwhen markets calm down once more.

“Carry is dead for now, but it’llresurrect itself phoenixlike whenvolatility dies down, because there’s stilla tremendous search for anythingoffering yield,” says Ray Attrill, head ofUS foreign exchange strategy at BNPParibas, the French bank.

“At the moment we’re living in fear,and thinking again about the returnof – not the return on – capital, butI’m confident carry will come backwhen volatility dies down.”

The carry trade has been dealt a blow by the volatility of the currency markets Getty

‘The market hastried lots of otherthings but they’rejust not liquidenough to be agenuine haven’


ContributorsPeter GarnhamCurrencies Correspondent

Jennifer HughesLex Writer

Neil DennisMarkets Reporter

Michael MacKenzieUS MarketsCorrespondent

Josh NobleEmerging Markets Editor

Izabella KaminskaFT Alphaville Reporter

Martin BriceCommissioning Editor

Jearelle WolhuterLiz DurnoSubeditors

Steven BirdDesigner

Andy MearsPicture Editor

For advertising, contact:Ceri Williams on:+44 20 7873 6321email:[email protected] Spain on:+44 20 7872 3197email:[email protected]

Inside this issue

Is the renminbi the next safe bet?GO EAST Investors would love to get theirhands on more of the Chinese currency, butlimited access means it is unlikely to becomethe global unit of choice soon Page 4

Silver lining for the dollarRESERVE CURRENCY Despite poorperformance and a longterm downwardtrend, no rivals have emerged to challengethe US money unit’s supremacy Page 4

Any port in a stormSAFE HAVENS Traders are consideringalternative investments such as theNorwegian krone and the Australian dollar,but they are finding them wanting Page 6

It has been a good year for retailSTRONG GAINS This oncedisadvantagedmarket looked set to suffer from new,stricter regulation but it has fosteredgrowth in this sector instead Page 7

More on FT.comCurrency warsNeil Dennis explores thecomplicated fallout fromfluctuations in foreignexhange

Living with francSwiss consumers areadapting to a strongcurrency but it is harderfor business, writesIzabella Kaminska

Front Page Illustration MEESON

Foreign Exchange

The euro remains inthe spotlight as theeurozone debt crisisthreatens to derail

the single currency, push-ing some to question itscontinued existence.

The euro remained resil-ient to the debt crisis overthe summer, trading in arelatively narrow range of$1.40-$1.45 against the dollarsince May.

But sentiment turnedagainst the single currencyas traders returned fromtheir summer breaks. Fearsover a possible debt defaultin Athens and the resultingeffects on the eurozonebanking system had a nega-tive influence.

Adding to the pressurewas a U-turn from the Euro-pean Central Bank, whichabandoned its hawkishmonetary policy stance atits September meeting, withJean-Claude Trichet, ECBpresident, warning ofheightened downside risksto the eurozone economy.

On September 12, theeuro dropped to a seven-month low of $1.3499against the dollar and alsotouched a 10-year troughagainst the yen and a six-month low against thepound.

The fall sparked a reac-tion that allowed it toregain some poise, afterGermany and France reas-sured investors.

Angela Merkel, theGerman chancellor, andNicolas Sarkozy, the Frenchpresident, put out a state-ment stressing they wereconvinced that Greece’sfuture lay in the eurozone,after a conference call withGeorge Papandreou, theGreek prime minister.

This lessened fears thatthe country would defaultand raised hopes thatAthens would receive freshrescue funding from theInternational MonetaryFund and its Europeanpartners.

The euro received a fur-ther boost after centralbanks joined forces to pro-vide dollar liquidity, a movethat could ease fundingpressure on Europeanbanks.

But not all observers viewthe events so positively.

Neil Mellor, a currencystrategist at Bank of NewYork Mellon, says there hasbeen a subtle shift in the

Franco-German approach toGreece amid growing talkof an “inevitable” defaultby Athens.

He says the fact that MsMerkel and Mr Sarkozy saidthey were “convinced” thatGreece’s future lay in theeurozone implied its mem-bership was in question.

“An ostensibly positivestatement about Greece’splace in the eurozone mightactually be seen as a starkadmission by its two largestmembers that Greek mem-bership cannot be guaran-teed for the simple reasonthat the EU cannot guaran-tee the country will not gobust,” says Mr Mellor.

However, Camilla Sutton,chief currency strategist atScotia Capital, is of theopinion that while lowgrowth in the eurozone, fis-cal austerity measures andworries over the bankingsector have raised concernsabout the future of Euro-pean monetary union andput pressure on the euro,those fears should subsidein the longer term.

That is because theframework of Europeanmonetary union offerslimited options regardinga potential break-up,given that a country can

voluntarily negotiate to exitthe euro, but cannot beexpelled.

According to Ms Sutton, avoluntary exit by eitherGermany or Greece ishighly unlikely. For Ger-many, an exit is likely toleave Berlin with a strongercurrency that could hurtexports, while a departurefrom Athens would onlyexacerbate its debt prob-lems. Ms Sutton says ifEuropean policymakers can

successfully deliver thatmessage, pressure on theeuro could ultimately ease.

“These fundamentalassumptions, if they canbe communicated, shouldreduce the possibility of theworst case scenario forEuropean monetary union,”she says.

Others remain less con-vinced, however.

Mansoor Mohi-uddin,managing director of

foreign exchange strategyat UBS, the Swiss bankinggroup, says that even if thestructural issues overGreece and European bankswere to be resolved, the sin-gle currency still facescyclical pressure as growthin the region slows.

He says figures are likelyto show the impact of theglobal slowdown hurtingmanufacturing sentiment inthe eurozone, which islikely to shift investor focuson to the ECB policy meet-ing at the start of October.

That will be Mr Trichet’sfinal policy meeting afterhis eight year term as ECBpresident.

“He has the choice of cut-ting interest rates or leav-ing the decision to his suc-cessor, Mario Draghi, inNovember,” says Mr Mohi-uddin. “The risk of the ECBstarting to reduce interestrates from 1.5 per cent isthat it would push the eurolower.”

The single currency islikely to face a difficultautumn. Of course, with noother major central banklooking close to tighteningmonetary policy, the chal-lenge for investors consider-ing abandoning the euro iswhere to put their money.

Fear of Greek defaultshakes euro’s stabilityMonetary unionPeter Garnhamlooks at the singlecurrency’s future

Nicolas Sarkozy and Angela Merkel are ‘convinced’ Greece’s future is in the eurozone Getty

There are limitedoptions regarding apotential breakupof Europeanmonetary union


Foreign Exchange

It has been quite a year forthe retail foreign exchangemarket.

In August 2010, the Com-modity Futures TradingCommission, the US regula-tor, announced a number ofnew rulings pertaining toforeign exchange providers,among them a compulsoryminimum capital buffer of$20m, as well as a clamp-down on the leverage pro-vided to customers.

While retail clients usedto be able to count on asmuch as 200 to one leveragefrom brokers, in the pastyear they have had to getused to ratios of no morethan 50 to one – somethingthat has had an immediateimpact on the number oftransactions being pro-cessed by brokers. Capitalrequirements, meanwhile,have led to mass consolida-tion across the industry.

“The foreign exchangedealer category has becomethe most heavily encum-bered type of financial mar-ket firm today, from a regu-latory perspective,” saysDrew Niv, chief executive ofFXCM, the retail currencytrader. “That’s why you’veseen a huge shrinkage inthe industry. There are nowdozens of names, instead ofhundreds.”

Some well-known nameshave disappeared from themarket altogether, whileweaker institutions havehad no choice but to beabsorbed into the remain-ing strong hands.

“It’s been a regulatoryearthquake, and in the nextyear you will see moreaftershocks and more firmsgoing out of business,” MrNiv predicts.

For those who were ableto ride out the storm, it hasnot been so bad. Almostimmediately, they havebenefited from increasedmarket share, while thetemporary sting fromreduced customer flows is,in the long run, expected todeliver a much more stablegroup of customers.

With reference to the reg-ulations, “overall, it’s defi-nitely a positive for theindustry, and positive forthe customer,” says Saman-tha Roady, founding part-ner of Gain Capital, the US-based company that runsForex.com, an online trad-ing site.

“In the beginning, cus-tomers were coming in andrelying on that leverageand now you’re seeing amuch wider customerbase,” she says.

That means those clientswho are left are at leastlikely to stick around forlonger.

“The previous higher-leverage model was detri-mental to the customer, butcustomers couldn’t helpthemselves. Churn didn’toccur because customerswere disaffected, butbecause they went bank-rupt,” says Harpal Sandhufounder of Integral, a for-eign exchange technologyfirm. “The new rules shiftthe market from a short-term gambling model to alonger term one.”

Against the backdrop ofan increasingly volatile for-eign exchange market – inan area where more volatil-ity brings more opportunity– as well as low expectedreturns from more conven-tional asset classes, mostbrokers say they are confi-dent the industry will con-tinue to grow despite thecurrent regulatory blip. For-eign exchange, they pointout, is now an attractivealternative to equities.

“Retail foreign exchangeis now about 10 per cent ofthe overall market, which ispretty amazing,” saysGain’s Ms Roady. “Theoverall market is worthabout $4,000bn a day andthat will continue to grow.”

Participants are nowmore sophisticated andknowledgeable than ever,too.

Whereas retail was onceconsidered disadvantagedcompared with professionaltrading firms or institutionsin terms of the service andrates received from brokers,this is no longer the case.Not only are retail quotescompetitively priced, thereis little or no disadvantagewith respect to the widermarket.

It is a response to retaildemand for an ever moreequal footing, but it is alsobecause of the technologicaltools which have becomeavailable to the sector.

“What made equities sobig with people, was youhad this democratisationwhich gave [them] the sameresources as a professionalfund manager,” says MrNiv at FXCM. “Those toolsare now here in foreignexchange.”

Most retail platforms, forexample, support the meansto plug in automated trad-ing packages available fromspecialist vendors. Thesecan either be run as theyare or personalised. Eitherway, the business for theseoff-the-shelf algorithms isbooming, say market partic-ipants.

“The tools available areso empowering that themarket is full of institu-tional traders who have lefthedge funds and banks andopened up shops of theirown,” says Mr Sandhu of

Integral. “We’ve beenhosting many of theseentrepreneurial start-ups to help these guysbuild their own systemsmanaging their own cap-ital.”Large foreign-exchange

dealing banks such asCiti, which have tradi-

tionally not marketedthemselves to the

retail sector,have been

quick to pick up on thetrend.

“Just this month, we havelaunched a product calledTradeStream, aimed at smallinstitutions such as brokersand hedge funds,” says San-jay Madgavkar, head of mar-gin foreign exchange tradingat Citi. “Rather than gothrough intermediaries, youcan deposit cash marginwith us and get exception-ally tight pricing.”

New regulationsConsolidation andeasier participationdrive growth, saysIzabella Kaminska

’What made equities so bigwas democratisation.Those tools are now herein foreign exchange’

Drew Niv,Chief executive of FXCM

Oncedisadvantaged retail sector expands quickly

FOREIGN EXCHANGEFINANCIAL TIMES SPECIAL REPORT | Tuesday September 27 2011

www.ft.com/foreignexchangesept2011 | twitter.com/ftreports

When the goinggets tough,r o u g h e d - u pinvestors turn

to the foreign exchangemarkets.

As concerns have risenregarding the world’s devel-oped economies, volumeson currency markets havesurged to fresh highs.

Investors have had muchto contend with over thepast few months. A down-grade of US governmentdebt, concerns over theeurozone financial crisisand currency interventionfrom Japan and Switzerlandhave all helped increasevolatility on world financialmarkets.

Once again, currencymarkets have acted as thepressure valve for the glo-bal financial system.

Starting on Mondaymorning in New Zealand,foreign exchange marketsstay open 24 hours a dayuntil closing on Friday inthe US, giving investors anopportunity to hedge their

exposure or take on freshmacroeconomic bets.

The current situation,although not yet asextreme, echoes the after-math of the 2008 credit cri-sis, when the deep liquidityin the world’s largest finan-cial market gave investors alifeline as others seized up.

Sophia Drossos, senior

investor on the globalmacro and asset-allocationteam at Morgan Stanley,the US investment bank,says the currency market isan ideal place to expressmacro views in times oftrouble, whether they aredirectional or a hedge.

Currency trading soars amid stressGlobal financialvolatility turnsinvestors to foreignexchange, saysPeter Garnham

Continued on Page 3


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