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.

peopleFrankie Boyle responds to referendum result in characteristically offensive style
Arts and Entertainment
Highs and lows of the cast's careers since 2004
New Articles
i100... with this review
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam