Making even more of a Horlicks out of MGAM

Whatever the precise reasons for Nicola Horlick's "suspension" as pensions supremo at Morgan Grenfell Asset Management - and it seems to be the old story of the brightest and best attempting to jump ship - it cannot be seen as anything other than another severe blow to this beleaguered organisation. Nobody is indispensable, but Ms Horlick was a key part of the team recruited by the now departed Keith Percy, and a vital part of the success achieved by MGAM until Peter Young so spectacularly called time.

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.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

Day In a Page

The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy
Number of young homeless in Britain 'more than three times the official figures'

'Everything changed when I went to the hostel'

Number of young homeless people in Britain is 'more than three times the official figures'
Compton Cricket Club

Compton Cricket Club

Portraits of LA cricketers from notorious suburb to be displayed in London
London now the global money-laundering centre for the drug trade, says crime expert

Wlecome to London, drug money-laundering centre for the world

'Mexico is its heart and London is its head'
The Buddhist temple minutes from Centre Court that helps a winner keep on winning

The Buddhist temple minutes from Centre Court

It helps a winner keep on winning
Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate
Greece debt crisis: What happened to democracy when it’s a case of 'Vote Yes or else'?

'The economic collapse has happened. What is at risk now is democracy...'

If it doesn’t work in Europe, how is it supposed to work in India or the Middle East, asks Robert Fisk
The science of swearing: What lies behind the use of four-letter words?

The science of swearing

What lies behind the use of four-letter words?
The Real Stories of Migrant Britain: Clive fled from Zimbabwe - now it won't have him back

The Real Stories of Migrant Britain

Clive fled from Zimbabwe - now it won’t have him back
Africa on the menu: Three foodie friends want to popularise dishes from the continent

Africa on the menu

Three foodie friends want to popularise dishes from the hot new continent
Donna Karan is stepping down after 30 years - so who will fill the DKNY creator's boots?

Who will fill Donna Karan's boots?

The designer is stepping down as Chief Designer of DKNY after 30 years. Alexander Fury looks back at the career of 'America's Chanel'