Making even more of a Horlicks out of MGAM
Wednesday 15 January 1997
With backing as powerful as Deutsche Bank, it seems unlikely that MGAM is going to evaporate as a business overnight. It takes quite some while for pension fund trustees to disentangle the complex arrangements that go with choosing a particular fund manager, even if they feel minded to do so. But what's happening now at MGAM is typical of all people businesses plunged into sudden and unexpected crisis. The best people bide their time, then when they find the right opening and opportunity, they jump.
Loyalty still counts for something at MGAM. It was apparently one of those she tried to recruit who shopped her, or so the rumour mongers say. And Morgan Grenfell itself says she severely overestimated the numbers who would want to join her in walking to another organisation. Even so, there are still some mighty disaffected people round there. Staff at MGAM should have shared in the City bonus bonanza this year - bonuses big enough to pay off the mortgage, as one rival fund manager gleefully describes them. As it is the bonuses paid next month are likely to be small, or certainly were going to be until this happened. With MGAM's reputation all but demolished by the Peter Young fiasco, the situation may not be much better next year either.
If Ms Horlick has indeed been attempting to poach internally, then Deutsche can hardly complain. Not so long ago it poached an entire team from ING Barings and got sued into the bargain for doing so. This is a dog eat dog business and Deutsche ought to know it. Its foray into Anglo-Saxon securities trading and fund management none the less looks like being an increasingly expensive one. Already the MGAM debacle has cost pounds 400m in compensation. Now it is all too possible it will end up without much of a fund management operation to boot. What a business.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...