Sachs, Sants and 100-year gilts – our take on the week’s events
Tom Desborough gives an insight into a week at MRM, giving all the gossip from his working week while highlighting what news has interested MRM over the past seven days.
Just when we thought the infamous phone hacking scandal had subsided, it rears its head in our headlines again, as six people, including Rebekah Brooks, were arrested as part of Operation Weeting, the Metropolitan Police’s investigation into phone hacking. One of the world’s largest investment banks also suffered scathing attacks this week, as Goldman Sachs saw £1.3billion wiped off its market value after an employee assailed the firm’s chief executive’s management and its treatment of clients. The Goldman Sachs scandal wasn’t the only shock to the financial services industry this week as today it was announced that Hector Sants, chief executive of the FSA is to step down in June, news which has been all over Twitter and we expect to see plenty of analysis over the days ahead.
This week also saw the chancellor, George Osborne, looking into the possibility of issuing WW1-style 100-year gilts, borrowing cheaply from institutional investors and paying back over an extended period of time.
In other news, we saw plenty of our clients in the news this week. For anyone that missed it David Ferguson, chief executive of Nucleus, spoke to Money Marketing about his background, the origins of Nucleus and his views on the future of the platform industry. Never a dull read when David is involved. There was also more activity at new’ish client Hearthstone Investments as it announced yesterday that Lucy Hawkins would be joining the fund management team as they prepare to launch the UK’s first residential PAIF (Property Authorised Investment Fund).
And staying with the investment theme, Man Group has launched its first single manager commodities-only fund for Sandy Rattray with $50m (£31.8m) of seed assets. The investment strategy for the fund has been developed by Man Systematic Strategies, an investment manager within Man.
Here at MRM we have a big research project planned that will attempt to uncover the attitudes of twenty something’s to the financial issues of today. Among many other insights, we’ll be looking to discover whether young people would consider a payday loan, whether pensions are a turn-off and if so why and what your average young man or woman expects from their high street bank. If you have an interest in young people’s finances – maybe as a blogger, commentator, financial services company or financial adviser – we’d love to hear from you so we can tell you more and get your thoughts.