UR TV CAST

So, with dividends and special dividends a reasonable return on the 500p or so they were privatised at (in the second tranche) in 1994.Of course the jingoist in me has to point out that, with the bid for Innogy (spun out of the old National Power), the bulk of British electricity generation is in the hands of Germans. Imagine those chauvinistic French allowing such a situation! Indeed, we seem more than willing to allow overseas investors to have a controlling share in what were once thought of as great strategic national assets.Still, I shouldn’t complain. The relaxation of the limits on foreign shareholdings in Rolls-Royce gave a useful push to these cruelly underrated shares. Proof, were any needed, that even if we indigenous punters cannot see the value of some of our companies, overseas investors can be open minded.Which brings me to one of the UK’s other truly global brands, Manchester United. A turbulent week for soccer, but Man U’s financial performance was as impressive as ever, although even that mighty club cannot cope for long with players’ wages rising at 29 per cent a year.The football bubble is bursting, for sure, and there will be some ugly Darwinistic culling of the weaker teams. The other side of that should be a survival of the bigger clubs, and the likes of Man U might even undertake their TV rights negotiations on their own That should underpin the share price. And, talking about overseas interests, don’t forget that the Irish millionaires John Magnier and J P McManus hold just more than 8 per cent of the stock, and an eventual bid can’t be ruled out.With Man U shares around 120p and a p/e of 20, that is what people in the new economy used to call cheap content.s.o’grady independent.co.uk.

Moneynetsavingssearch In the last week of the worst Individual Savings Account (Isa) season since packaged tax-free savings began 14 years ago, investors face additional uncertainty about who is really managing their money, as asset management companies change hands rapidly between financial services groups trying to cut their losses.This week Barclays Global Investors, one of the largest fund managers which is part of Barclays bank, was rumoured to be up for sale. Jupiter Asset Management has also been put on the market by its German owner Commerzbank and Royal & SunAlliance, the UK’s fourth largest insurer, has been trying to sell its asset management business for months.
While some banks and insurers rushed to snap up asset management businesses in the mid-Nineties, they are now finding the sector is not as profitable as it was in the bull markets of five years ago when investment by private individuals reached frenzied levels.The gloom which has descended on fund managers stems from two years of falling markets and was confirmed this week by early indications that another season of very slow Isa sales is coming to a close. Industry figures predict that Isa sales for the 2001-2 tax year may be down on last year by as much as 40 per cent, as investors shied away from pouring money into difficult markets after 11 September.The final result will not be known until after the end of the tax year on Friday. But figures produced by the Investment Management Association show that total Isa sales from April last year to January 2002 were £5.7bn, only just over half of the £9.9bn achieved in the 2000-1 tax year This is bad news for the fund management industry.

The Isa season from January to the end of the tax year is a crucial period when companies usually pick up large amounts of business from private investors keen to take advantage of tax breaks.This year, as well as not receiving substantial new revenue, fund managers are being squeezed by a decline in fee income, which has gone down because it is mainly based on investment performance.At the same time, companies have come under pressure from extra demands made by the Government and regulators about costs and product design. This has driven up the price of regulation while bringing down many costs to consumers to 1 per cent, the level stipulated on CAT-mark investments and stakeholder pensions.Mark Dampier, head of research at the advisers Hargreaves Lansdown, said: “The UK financial services sector is in one of the worst recessions I’ve seen since 1988, and this year has been very tough as the market is lower than it was four years ago and, not surprisingly, people have deserted it.”The result is the current round of corporate activity in the asset management sector. But while some financial institutions are rushing to get out of asset management, other companies are keen to buy up businesses to try to cope with the pressure on profits by achieving economies of scale. This, however, is adding to investor uncertainty.One rumour which has been doing the rounds in the City is that John Duffield, one of its best-known fund managers, is eyeing up his old business Jupiter to add scale to his new company, New Star Asset Management. Mr Duffield ruled himself out from this deal, which would involve co-operating with former colleagues with whom he has now fallen out, saying it would be “retrogressive” But New Star remains in the market for acquisitions.