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‘My Old Ass’ director Megan Park on advice to our younger selves

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This is an audio transcript of the Life and Art from FT Weekend podcast episode: ‘‘My Old Ass’ director Megan Park on advice to our younger selves’

Lilah Raptopoulos
Welcome to Life and Art from FT Weekend. I’m Lilah Raptopoulos. The new film My Old Ass is a coming-of-age story. Its lead character, Elliott, played by Maisy Stella, is 18 years old and home for that last summer before college. She’s ready to leave, but she clearly still has a lot of growing to do and a lot to learn about her relationship with her family, about her sexuality, and more. The twist in the story is that the person who helps Elliott understand herself better is her older self, or in other words, her old ass. On a mushroom trip in the woods with her friends, younger Elliott conjures the 39-year-old, more jaded version of herself up, played by Aubrey Plaza, and then that version of her continues to advise her throughout the film.

[MOVIE CLIP PLAYING]

The film was produced by Margot Robbie’s production company, LuckyChap, which also produced Barbie. It focuses on work about women. And it was written and directed by Megan Park. Megan is a former actor. This is the second film she’s written and directed. The first was about young adulthood, too. It was called The Fallout, and today we’re thrilled to be talking to Megan from her home in Toronto. Megan, hi. Welcome to the show.

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Megan Park
Hi. Thanks for having me from my Covid den, my isolated Covid back house.

Lilah Raptopoulos
Yes, we learned you got Covid on the press tour, is that right?

Megan Park
Yeah. Unfortunately. It’s my first time, actually. My first time having it.

Lilah Raptopoulos
Welcome to the club. (Laughter)

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Megan Park
Thank you.

Lilah Raptopoulos
It’s great to have you.

Megan Park
Thank you.

Lilah Raptopoulos
I wanted to start with a kind of weird question, because for so many teens that post-high school summer is this funny, liminal space. I wanted to ask you, like, where you were when you were 18. What was that summer like for you?

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Megan Park
You know, it’s funny. I don’t have, like, a distinct memory of that summer other than the feeling of I wasn’t ready to move on. I remember going on a really long kayak ride. I grew up on a river, and we would . . . you can either go for a short kayak ride up the river, or a long one down and have someone pick you up at the spot, you know, a few hours on the way. And my mom and I were doing it and going down the river, and I remember just being so relieved because I had decided to not go to university right after high school and take one year to pursue acting.

All my friends were like, gearing up to move into their dorm rooms and doing that whole thing, and I was just sort of having this long, leisurely kayak ride with my mom. And I remember trying to soak it up and feeling like, oh my gosh, I would so not be ready to be leaving home yet, even though I didn’t know that by the end of that year, I think like, in LA and like, on a TV show. But in that moment, in that kind of end-of-summer feeling, I was feeling really anxious about the idea, truthfully, of leaving home, which is very different than how Elliott is feeling.

Lilah Raptopoulos
Yeah, yeah. And then can I ask, when did you . . . So you started acting that following year. What was that like?

Megan Park
I had started acting, you know, professionally when I was around 16 because I live just outside of Toronto and there’s a lot of, you know, big productions that film there, both Canadian and American. But my parents were very adamant, and at the time I was so angry about it, but they didn’t want me to miss a lot of school. So, like, they would let me audition for things that would only take me away for a few days. But all of my friends were like serious regulars under Grassi, and we’re doing all these big jobs, and I really wanted to do that. And they kept saying, if you want to do that, you can do that once you graduate school. You can do that once you turn 18. But we really want you to have a normal high school experience. And I was really pissed. And now I’m so grateful for them because I really had such a normal high school experience, and there’s just no price tag on having a normal childhood and young adulthood.

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Lilah Raptopoulos
Right. So you did have success during that gap year, and then you went on to be on shows like The Secret Life of the American Teenager. You were in movies. I’m sure that time was very formative to you, but I’ve also seen interviews where you say that in the movies that you’re doing now, you think of them as kind of a way to redo those experiences, as a way to, like, kind of change what the set was like for the teenagers that are in your films now. Can you talk about that a little?

Megan Park
I mean, I think things have changed a lot. I mean, I’m, you know, 38 and this was, you know, me at 20, 21. So there’s been a lot of time. But certainly when I was younger, always like some older dude was the director and it was like a hierarchy. Everyone had to please the director. You could tell the director generally loved that vibe and wanted that environment, and it was like them trying to tell these stories about young people and never asking us our opinion on anything. And I mean, I remember like, there was writers and powerful people coming up to me as a young person and the threat, a literal threat, I was told once, was the power of the pen. You know, that was like the threat of, like, we can make you or break you sort of thing. And it just . . . it was, I don’t know, looking back, it was like pretty messed up. And, I was lucky to come out pretty unscathed compared to most people because I was a little bit older.

But I really don’t think there’s a need for that. It creates the least creative environment ever. And a director is a curator, I think, like, you know what you know and know what you don’t know, and you hire people who do what you don’t know. And so I really want to make sure that my sets never feel like a hierarchy. In fact, I’m doing a show next, and I have this whole theory that I don’t think that creators and writers of shows should also be the sole showrunners because I think it’s just too much power. I don’t know. It’s just a weird thing that I think should change within the industry.

Lilah Raptopoulos
Yeah, yeah. I would love to hear a little more about how you collaborated in this film with your team. But first I wanted to ask, you know, the movie is like a comedy at its core. It’ll make you cry — it made me cry — but it’s funny. And it’s set in a small town in Canada. Or was it the woods? It was on a lake. It was like a rural cranberry farm?

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Megan Park
Yeah, it’s an area north of Toronto called Muskoka Lakes, where there’s like a bunch of lakes. There are actually some cranberry farms that is a thing up in that area, and it’s really close to where I grew up, which is called Kawartha Lakes.

Lilah Raptopoulos
It’s gorgeous. Idyllic living. And basically Elliott’s life seems good, you know, she’s like queer and everyone’s cool with that. She’s hooking up with this cute girl that she’s had a crush on. She’s not actually awkward at all. She has this, like, cool boat that she rips around the lake in. That really struck me because, in so many teenage movies, the thing that makes the protagonists relatable is that they’re kind of struggling. Like, they feel awkward or they’re uncomfortable in their skin, or they have bad braces or whatever. And, yeah, I’m curious why you sort of chose to have her starting her journey in this movie from like, a pretty comfortable, nice place.

Megan Park
Well, I was kind of sick of seeing, like, the teenage vibe of, like, this angsty girl who, like, hates her parents and, like, I don’t know, I’m like, is moody and insecure. And sure, like, there’s parts of that in all of us and little tinges of that in Elliott. But I really wanted to see a young female lead in a movie who was happy and grounded and secure about her identity and loves her family. Maybe she takes them for granted, but like, at her core, loves them and wants to connect with them, is bright and sunny and optimistic. And that’s one of the things that I kind of feel like a lot of people get wrong about this generation. And I was so wildly taken hanging out with the young people in this movie. They are so optimistic. And despite how shitty, like, some things in their life, you know, the world and stuff that they’re looking forward into, these kids don’t, like, talk shit, which was amazing. Like, they really don’t! Like, they all speak so kindly about each other and love each other and are open and accepting. And I wanted to see that reflected on screen, you know, about this like, strong, bright young woman, full of joie de vive and positivity, but who’s still very cool. Like, that is what’s cool. It’s not cool to be a shit talker, to be a bully. Which I think was like more of the trope of the cool girl, like, you know, Mean Girls when I was younger, right?

Lilah Raptopoulos
It’s funny, I felt like, well, this isn’t what movies are like. When I was watching it, I thought, wow, this is not really what I’m used to seeing. I don’t know, it was refreshing. And on the other hand, the older Elliott is more unsettled. And I wonder, you know, if you were trying to poke holes in this idea that, you know, life is linear and we’re awkward as kids, and then you become an adult and you get it and you haven’t figured out or . . . What was your thinking about?

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Megan Park
It feels a little true. Like both from like, what could we be looking at, you know, planet mirror, and the world is being like, 20 years from now realistically. But yeah, I liked the idea that there was sort of a hardness to the older version. And she’s not even that much older, you know, she’s 39, but her younger self is sort of this, like, which I don’t think is that uncommon, that your younger self is sort of like the more optimistic and blissful, you know, right, sort of version of yourself. And a lot of it really came together tonally with these two actors.

Like Maisy really does have that essence to her, which was one of the reasons why I loved her so much for this character. So many of those conversations I pulled real moments from that her and I had, where she would be asking me, you know, like, you know, oh my God! Like, so like, what is middle-aged like? What is love like? I’m never gonna fix things. I actually feel like I’m one of those people who’s never gonna fall in love. Like, all those moments were real conversations we had, which was so funny. It made me feel so old.

Lilah Raptopoulos
Interesting. And you’re like, I’m not middle-aged. Not middle-aged.

Megan Park
I was like, wait, I’m not. I’m like 35 or whatever. And she’s like, oh, but that’s pretty close to middle age. I was like, oh shit. Wow. OK. And I think, you know, when you cast someone like Aubrey, what her energy brings to the table, it was really fun to play with that. But Aubrey is a very soft, sentimental, nurturing person, so it was fun to pull that side of her. And she has sisters who are a lot younger than her. Maisy has a sister who’s older than her, so there was like a natural vibe that happened that we kind of played around with. But at their core they have like a very similar sense of humour and very similar coolness to them, I think, that trumped any sort of like need for them to look like in the casting process.

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Lilah Raptopoulos
Yeah, yeah, yeah.

[MUSIC PLAYING]

[PODCAST TRAILER PLAYING]

Lilah Raptopoulos
You know, Megan, one of the things that I found really moving in the movie is that it isn’t sort of young Elliott who gets the biggest lesson, like, she sort of can’t help being who she is. But there’s this big lesson that older Elliott learns from her younger self to kind of maybe be less guarded. Like, it feels sort of like if we knew what happened, what would happen in the future, maybe we wouldn’t change our decisions in the present. But if we could see what had really happened in the past, like maybe it’ll change the way we process the past or the story we tell ourselves about our life. And I’m wondering if you were thinking about that, how you were thinking about that?

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Megan Park
You know, I think writing for me is really therapeutic, and I do not write pitches or outlines or anything. I never have. I just think about sort of like the feeling that I’m trying to tap into, which was that nostalgic ache and sort of that sadness about the passing of time. But I really feel like now, in retrospect, so much of this movie was actually born . . . I just had my daughter, my first child, and I was home in Canada. And I feel like when you have a kid, time really does speed up.

I remember when I was pregnant, everybody was like, oh my gosh, you blink and they’re gonna be 10. And I’m like, OK, I got it. Like, everybody said that. But then I really was feeling that so viscerally. And so even though this movie’s so much about, you know, an 18-year-old meeting her 39-year-old self, I feel like it was the feeling of new motherhood for me, in a weird way, that really got me in the feels to want to talk about some of these things. And I think the most personal scene in the movie for me, just for me as Megan, was like, definitely the mom and daughter, Elliott and her mom sitting on the porch talking in the scene about rocking her daughter to sleep.

Lilah Raptopoulos
Can you explain that scene just for listeners, if they haven’t?

Megan Park
Yeah. There’s a moment where Elliott and her mom are talking, and it’s like a few days before she leaves and her mom is kind of talking to her about, you know, I’m really happy for you that you’re moving on with your life. And this is what all parents want to see. And there’s such a beauty and a joy in seeing your kids grow and go off and be free and confident in the world. But there’s also, like this bittersweet sadness that a huge part of, not your life, but just sort of our time as it is, is over. And, I don’t know, maybe having kids makes you more aware of like the infinite amount of time you have.

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[MUSIC PLAYING]

Lilah Raptopoulos
I was thinking about these questions that we ask ourselves, and we seem to be asking them a lot in culture like, you know, advice that we would give our younger selves. There’s like, all these think pieces, you know what I wouldn’t tell my younger self? And there are so many movies where people become sort of older or younger versions of themselves, like 13 Going on 30 and Big. And then there’s movies where, like, people time travel into their own family history, like Back to the Future, or they encounter themselves like Interstellar. And I feel like a lot of people are sort of obsessed with these questions and these perspective shifts and like, we’re searching for something. I’m wondering what you think that is.

Megan Park
I think it’s just the universal . . . All these themes in this movie are so universal. Time passing, family dynamics. You know, your disappearing youth, grief, motherhood, becoming a parent. That’s why it’s been kind of funny because, like, the title of the movie, it’s like, ooh, My Old Ass, you see Aubrey and you see, you know, the kind of this bright poster and you think it’s gonna be like this kind of, I don’t know, raunchy coming-of-age comedy. And the movie is quite heartfelt and quite universal. And it’s been really interesting to watch.

Like, I’ve said this before, but the amount of old dudes, like over 65, they come up to us and are like, this is my favourite scene. And they’re just like, sobbing is so interesting and amazing but I never expected that. I don’t know. I think I’m discovering myself as a filmmaker, and I remember really, one of my favourite moments in my career and life so far is after Sundance, you know, in Sundance, it was really like, it’s like putting your baby out into the world. After that premiere, you know, you don’t know if a movie’s gonna work and it’s in this massive theatre and that I got a standing ovation. It was so surreal. And I got in the car afterwards with the producers and one of our producers, Tom Ackerley, he sounds like an emotional guy, but he kind of was like had tears in his eyes. And he said to me, he was like, you know, Megan, as a filmmaker, you have this ability to really get inside people’s hearts.

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And I was so moved by the compliment. But I was also . . . it struck this like lightning bolt inside of me of the I was like, oh yes, oh yes, that’s what I want to do as a filmmaker. And it sounds cheesy because of course, you know, everybody wants to get an emotional reaction, but they’re saying about the phrasing of like getting inside people’s hearts that rang true to me of like that is . . . that became my North star immediately in that moment because I was like, yes, those are the movies that have stuck with me and that I love and that I go back to, and those are the movies that I want to make at the core.

Lilah Raptopoulos
What does that mean to you? Get inside people’s hearts or, yeah. What is that feeling you’re trying to . . . well, what does it mean?

Megan Park
I think it’s like about these, like, universal themes, but, like, masked behind something maybe more palatable and grounded, like, you know, with The Fallout, I was like, how do I tackle this awful subject matter that is not palatable, like, I don’t . . . It’s so dark. Yeah, I was like, I can’t watch a movie about school shooting. That shit is like so heavy. But I tried to get into in a way that was like as least triggering as possible, but surprise people with sort of like, the nuance of, like the journey that it wasn’t just like, I don’t know, black and white.

So same thing with this movie. It was like I wanted this to feel like a fun coming-of-age story about, you know, growing up, but then surprise people with sort of like the heartfelt truth of like the, the message. And there’s also like, this is a little thing but in both my movies there’s no like villain. I mean, obviously, there is a villain you never meet or see in The Fallout, but all these characters are like pretty endearing people, and they’re messy and they’re nuanced, but they’re good people. And I love movies like that. I was always so bored watching movies like The Bad Guy. Through the line, I’m like, I don’t care. Like, you know, this is like a story vehicle, like, move the plot along, but who cares? I just want to watch, like, the good people figure out life. So that’s really important to me too.

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[MUSIC PLAYING]

Lilah Raptopoulos
Megan, as my last question, I’m curious what draws you to stories about teenagers and young adults? You know, you’ve talked about The Fallout, your last movie, I was about kids in the aftermath of a school shooting, which is obviously pointing to a very specific problem in American society. But I’m wondering if you think there’s something like more broadly that we aren’t talking about when it comes to young people or that we’re not reflecting when it comes to young people?

Megan Park
I didn’t like intentionally set out for both my movies to be centred around Gen Z, weirdly. I mean, obviously, though, if you’re gonna talk about school shootings in America and Gen Z, those all go hand in hand. But I also think there is a part of me that when I was a young actor and telling stories about young people, nine times out of 10, the stories didn’t necessarily feel authentic to my actual experience as a young person in that moment. So there is a part of me that I think is trying to listen if I’m gonna tell a story about young people, I want to give them the quality they deserve and like the respect that they should get in their stories.

And I think there was a generation, a long time ago, of filmmakers who were really doing that about stories for young people. And I think all of a sudden they’re in the last 10 years and this shift of like, how do you . . . it’s so hard to tack into Gen Z, how do you . . . like, how do you get them? And the second you’re trying to write a young person or trying to get them, you’ve already lost it. You’ve already messed up. I think. because when I started writing Elliott, I wasn’t like, OK, she’s 18, how do I write an 18-year-old? I was like, this is a human being, and I’m writing a human being. Later, I’ll figure out if, like, she’s gonna say the word suss or not.

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And that it’s like, but that doesn’t matter, right? And I’m not trying to put slang in for the purpose of getting young people to watch the movie. Like there were certain elements, like the Bieber thing, like I went to Maisy’s, like, who was that performer of your childhood? Like, there’s moments. Yeah, you have to, like, bring that into it. And that is sort of like a pop culture reference. But in general, as I’m creating Elliott in my head, I was in no way thinking first and foremost about how it was a 17-year-old girl.

Lilah Raptopoulos
Yeah. And when you are talking about the Bieber thing, you’re talking about when, Maisy’s character, Elliott is like, having another mushroom trip and she’s decided that she wants to be Justin Bieber and serenade the fans.

Megan Park
Yeah. And I went to her and I was like, who is . . . Yeah. What was that moment? Or who was that first concert for you and your generation that was really formative? And she was like, oh, it was the “One Less Lonely Girl”, Justin Bieber and every girl in the audience wanted to be chosen as the one less lonely girl, and he would bring this girl up on stage and give them roses. And I was like, what? That’s insane. And she showed me the “Never Say Never” tour doc. And then I was like, oh, wait a second, you have to be Belieber. But yeah, it’s about like, you know, bringing in opinions and opening it up when it’s important, but not like the whole time being so caught up and like, OK, this is a Gen Z-er. And like, how would hey say it? It’s like . . . it’s a, it’s a human being, man. You know?

Lilah Raptopoulos
Yeah. Try . . . You gotta try a little less hard maybe.

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Megan Park
100 per cent.

Lilah Raptopoulos
Yeah. Also, her Justin Bieber was perfect.

Megan Park
She killed that. She really embodied that. She really took over. It was in her all along. We kept joking. She was a changed person for sure.

Lilah Raptopoulos
Well, this was such a pleasure. Thank you so much for being on the show. And, please feel better.

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Megan Park
Thank you.

[MUSIC PLAYING]

Lilah Raptopoulos
That’s the show. Thank you for listening to Life and Art from FT Weekend. My Old Ass is in theatres in the US and the UK now, and we put some relevant links in the show notes. Also in the show notes are places to find me on email and on Instagram @lilahrap where I love chatting with you about culture.

I’m Lilah Raptopoulos and here’s our exceptional team. Katya Kumkova is our senior producer. Lulu Smyth is our producer. Our sound engineers are Breen Turner and Sam Giovinco, with original music by Metaphor Music. Topher Forhecz is our executive producer and our global head of audio is Cheryl Brumley. Have an excellent week and we’ll find each other again on Friday.

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Asset Management: Wall Street’s new titans

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Welcome to FT Asset Management, our weekly newsletter on the movers and shakers behind a multitrillion-dollar global industry. This article is an on-site version of the newsletter. Subscribers can sign up here to get it delivered every Monday. Explore all of our newsletters here.

Does the format, content and tone work for you? Let me know: harriet.agnew@ft.com

One thing to start: It was great to see so many of you at our Future of Asset Management North America event in New York last week. If you missed it, catch up on the video on demand here.

And one scoop: UK chancellor Rachel Reeves is considering dropping an inheritance tax element of her non-dom crackdown after warnings it would cause an exodus of wealthy people and bring in little revenue.

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In today’s newsletter:

  • How trading firms stole a march on big banks

  • Vanguard plans fresh push into active fixed-income market

  • Global egg price surges as avian flu hits supplies

How trading firms stole a march on big banks

After decades of investment banking dominance, a new breed of upstart firms now rule the roost in global markets. 

This must-read analysis by my colleagues Joshua Franklin and Costas Mourselas is the first in an FT series on the trading giants that have risen to challenge investment banks. 

It explores how non-bank trading firms such as Ken Griffin’s Citadel Securities, Jane Street and Susquehanna have seized market share from banks in a number of key markets, including equities, bonds, commodities and derivatives. They have garnered an edge through enormous investments in technology. 

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This new breed of trading titans were generally set up around the turn of the millennium, just as the raucous trading pits in Chicago, New York and London were losing influence and electronic trading was in the ascendant. Regulations after the 2008 financial crisis further hampered the big banks. 

These newer trading firms look very different to the banks they have usurped. They hire legions of PhDs and engineers to develop sophisticated trading algorithms, which buy and sell securities in microseconds.

“The banks just didn’t appreciate how electronic markets and the efficiency of these firms would ultimately make them the dominant force in trading,” said Rob Creamer, president of Chicago-based firm Geneva Trading.

“Banks made big money quoting trades on the phone and didn’t care to prioritise a low-margin business like electronic market making — it was hardly going to pay for the new headquarters in Manhattan.”

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Banks still retain an advantage, controlling the calendar for new issues of securities via stock offerings and debt deals. But non-bank firms are increasingly coming for market share in traditional areas of strength for banks, including foreign exchange and the debt markets, which have been more opaque and slower to electronify. 

Critics wonder if the increasing market share of these more lightly regulated firms may spell trouble for markets in future.

“Regulators need to look at the top 15 players in trading volume, and should be agnostic if it’s a bank or a hedge fund or proprietary trading group, because there is inherent risk when somebody has too big of a market share,” said the head of a proprietary trading firm. “If they go down, they could take liquidity and cause stress in the market.” 

Read the full story here

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Vanguard CEO unveils fixed-income push

Vanguard famously revolutionised the equity market with its low-cost products that track an index, driving down prices and becoming the world’s second-largest money manager in the process. 

Now it is coming for the bond market. At the FT’s Future of Asset Management event in New York last week, Vanguard’s new chief executive Salim Ramji announced the $9.7tn asset manager was planning a push into fixed income investing. 

Fixed income “is going to be more important as people retire . . . it’s going to be more important in, at least our view is, the long term rate environment”, Ramji told my colleague Brooke Masters in a keynote interview.

“If you think of the fixed income market today . . . it’s far more antiquated, it’s far less transparent, far more expensive.” Around 10 per cent of the firm’s assets are already in active fixed income. “I think there’s an opportunity that Vanguard has to change that dynamic,” he added.

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Ramji criticised the fixed-income market for high fees and lack of transparency, which he said benefited firms more than their clients. “The opportunity set is vast when you look at the fixed-income market. It’s twice the size of the equity market and the inefficiencies in fixed income are extraordinary.”

Ramji, the first outsider to lead Vanguard since its founding in 1975, also addressed the technical and service failures that have plagued the manager in recent years as the industry has rapidly modernised, and acknowledged that the firm had “let down” its customers. “We have some work to do,” said the former top executive at BlackRock, Vanguard’s main competitor. 

He also walked a fine line around the firm’s decision to support none of the environmental or social shareholder proposals that it considered in the 2024 proxy season.

Ramji said: “We don’t dictate to companies what their strategy should be, we don’t push a particular agenda.”

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Chart of the week

Line chart of average price of eggs ($ per dozen) showing US egg prices inflation

Prices for eggs have soared as devastating bird flu outbreaks around the world and shifting consumer tastes put pressure on supplies, write Josephine Cumbo and Susannah Savage in London.

Global average prices are 60 per cent higher than in 2019, according to analysts at Rabobank, a rapid appreciation has led to political point-scoring by vice-presidential nominee JD Vance on the US election campaign trail. Egg shortages have also created temporary curbs to McDonald’s breakfast service in Australia.

A key factor in surging prices has been the devastating outbreaks of avian flu in North America and Europe, which have led to the culling of tens of millions of laying birds.

Roughly 33mn commercial laying hens and pullets were culled in the US between November 2023 and July this year, hard on the heels of another bird flu outbreak in 2022 that culled 40mn layers, Rabobank found.

“The lingering effects” of bird flu have been compounded by rising demand, said Karyn Rispoli, managing editor of eggs at Expana, a commodity trading data provider.

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She said consumers were also switching to eggs as a more affordable source of protein than meat. Concerns about the carbon footprint of meat consumption was also driving demand for eggs, added Rabobank.

These factors had led to Americans paying more than three times as much for eggs today than five years ago, Rabobank said. In comparison, South African egg prices had only doubled in the same period while Russia, Japan, Brazil and Europe and India had experienced price rises of between 50 and 90 per cent, it added.

Five unmissable stories this week

David Hunt, the chief executive of $1.3tn asset manager PGIM said he was concerned about “layered leverage” that private equity firms are using to return cash to investors and urged regulators to insist on more transparency about complex forms of debt. 

Legal & General has appointed Eric Adler from US insurer Prudential Financial as chief executive for its newly created asset management division, picking a US executive with expertise in private assets in a signal of how it plans to grow the UK’s largest asset manager. 

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The barbell tolls for fixed income investing, writes Huw van Steenis, vice-chair at Oliver Wyman. A trend long associated with equity investing is now playing out in the bond markets.

Nuveen, the wholly owned subsidiary of US teachers pension fund TIAA with $1.2tn in assets under management, is set to open its first Middle East office in Abu Dhabi, becoming the latest asset manager to bet on the fledgling financial hub.

Steven Fine, the chief executive of investment bank Peel Hunt, has warned of a looming “cliff edge” for UK small cap stocks if the government scraps inheritance tax relief on Aim-listed companies.

And finally

William Dalrymple, speaking about his latest book, The Golden Road © Colin Hattersley

Last weekend I attended the Wigtown Book Festival in south-west Scotland, now in its 26th year. I heard William Dalrymple talk about why India was Ancient Asia’s intellectual and technological superpower; Buddhist monk Gelong Thubten on finding strength in adversity; Pip Thornton speak about how Google sells your words; and a delightful performance by poet and comedian Pam Ayres, which had us all in stitches and rapturous applause. Highlights at Wigtown this week include a series of culinary events hosted by guest curator Coinneach MacLeod, aka the Hebridean Baker. There will also be appearances from National Chef of Scotland Gary MacLean; MasterChef finalist Sarah Rankin; and Sanjana Modha Sanjana, creator of amazing modern Indian cookery. Until October 6. 

Meanwhile the Josephine Hart Poetry Hour returns to the British Library in London on Thursday. The likes of Brian Cox, Nicole Ansari-Cox, Tim McInnerny and Joely Richardson will read aloud the poetry of the natural world. Tickets available here 

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Kingswood UK and Ireland assets buoyed by BasePlan acquisition

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Kingswood UK and Ireland assets buoyed by BasePlan acquisition

Despite a drop in assets under advice in its UK business, Kingswood’s UK and Ireland division reported a £200m uptick in the first half of 2024 thanks to the completion of its BasePlan acquisition and “positive market movements”.

In its unaudited interim financial results for the half year ended 30 June 2024, the group said it had experienced AUA outflows in its UK business following the departure of some wealth advisers.

A “swift, diligent recruitment process” has replenished its wealth advisory team, it said.

This includes the addition of a fourth regional manager to support growth across the London and Southeast region.

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Kingswood completed the acquisition of Dublin-based advice firm BasePlan in February this year. The acquisition added €130m (£108m) AUA to the group.

UK and Ireland AUA at the period end stood at £6bn and assets under management were £3.7bn. Meanwhile, US AUA was £3.2bn.

Group revenue from continuing operations in the period was £40.6m, an increase of 14% on the restated prior-year figure of £35.6m.

UK&I revenue increased by £300,000 to £23.4m, or 1%, compared to the restated period last year, of which 81% is recurring in nature.

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US revenue increased by £4.8m to £17.2m, a 38% rise compared to the restated period last year, driven by growth in authorised representatives.

Kingswood said further progress had been made across the UK&I in “driving organic growth”.

This included onboarding six new IFA firms to IBOSS, in line with 2023 levels over the comparable period.

The group also flagged three new appointments made to the executive team in H1.

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In the period, it brought in Bryan Parkinson as managing director of wealth planning, Vinoy Nursiah as chief financial officer and Peter Coleman as chief executive.

“The combination of the new joiners with the incumbents of Rachel Bailey, chief people officer, Paul Hammick, chief risk officer and Lucy Whitehead, chief commercial officer, has already demonstrated its effectiveness and capability,” the report said.

The executive team has delivered in-person presentations of the next strategic phase at all UK locations and overseen the delivery of a major project to enhance regulatory performance and efficiency.

It has also run the design and implementation of a new service operating model to improve client and adviser experience and created five fundamental focus areas to align efforts across the group.

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Additionally a major finance transformation project commenced in July and is on track to complete as scheduled in Q4.

Coleman said he is “particularly pleased” with the firm’s strong revenue growth and in particular the growth in recurring revenues.

This, he said, demonstrates that the group’s acquisitions are “beginning to mature”.

“Quite rightly our focus is on providing a first-class experience to all of our clients, with the use of our excellent advice community, technology and range of award investment propositions,” he added.

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“In particular, I am pleased with the ongoing development of our IBOSS range of model portfolios and our in-house DFM, both of which continue to flourish within the group.

“Our operating profit continues to grow, enabling our continued investment in people, propositions and processes all focused on delivering a market-leading proposition for our clients.

“In UK&I we continue to be acquisitive with the addition of BasePlan, and we will continue to identify opportunities that enhance our growing business in this market.

“In the US, we continue to expand with the momentum of adviser recruitment and banking growing exponentially.”

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Sainsbury’s to open first ever airport store at Edinburgh

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Sainsbury’s to open first ever airport store at Edinburgh

The Scottish airport is also set to open an extended BrewDog bar, Pizza Express venue and Korean fried chicken restaurant Seoul Bird

Continue reading Sainsbury’s to open first ever airport store at Edinburgh at Business Traveller.

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What does Trump’s $100k watch tell us about the future of luxury goods?

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We write about watches on our finance blog for several reasons. The first is that watches measure consumer confidence. Hardly anyone needs a watch, and the few that do would be best with a Casio F91w, so there’s a lot to read into regional changes in demand for more tricksy and showy stuff.

The second is that Swatch and Richemont are listed, as is Watches of Switzerland, so it’s markets-adjacent content. Third, the privately owned watchmakers expect us to reproduce their hoopla while respecting their secrecy around business practices and frankly, we’d rather not. Fourth, our readers click a lot on stories about watches.

That’s why, when a new horological microbrand appears, we take notice. For example:

The Victory Tourbillon is the limited edition flagship of a range of watches sold by Trump, a multi-faceted leisure and lifestyle brand. The ticket price is $100,000, which made FTAV wonder about the mark-ups.

Tourbillon means there’s a rotating cage around a tick-tock bit. The idea is to make the watch mechanism more accurate by minimising the effects of gravity and, though it probably does nothing, people appreciate the extra engineering required.

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Tourbillons have become a lot less special in recent years though, with Chinese factories churning out decent reproductions and simulacra of Swiss workmanship, and the Swatch-owned ETA movement maker able to supply the most fiddly bits in kit form. Only a few makers design their own movements from scratch and, at the super high-end, the arms race has moved to making everything as thin as possible.

Or, to put it as an old meme:

The Trump Victory Tourbillon isn’t particularly thin, but it does say “Swiss Made” on the dial, so it can’t be using a Chinese-made movement. (There are a lot of rules governing adverts of Swiss origin, including that a watch movement has to be assembled in Switzerland.) ETA only really makes movements for Swatch brands these days, which narrows things down further.

The website says:

The Trump Victory Tourbillon comes equipped with a Swiss-made TX07 Tourbillon. Each watch is composed of over 200 individual parts, all working in perfect harmony for outstanding performance.

. . . which means nothing. However, the page also includes a video of a movement in close-up with a distinctive symmetrical plate over the balance wheel:

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That’s one tell-tale sign of a BCP T02. Designed by Olivier Mory, the T02 is a movement sold to small-batch watchmakers including Yema, Aventi and Louis Erard. Time & Tide says Mory discovered “the cheat code” for making Swiss tourbillons affordable.

Mory confirmed by email that he was supplying the Trump Victory Tourbillon movement to a third-party watch assembly company, adding:

We use the standard price list of our Tourbillon range which is around 4700 USD / movement for batches in the 100-200 size. We are usually very competitive in this batch size for a movement which is 100% Swiss Made. 

(Mory also sent us a schematic of the movement that lists suppliers for every cog, spring and pin. The information doesn’t add anything to this post, but in an industry addicted to secrecy and bullshit, such transparency is like a breath of fresh air.)

So anyway, we’re off. Movement: $4,700.

Another Swiss watchmaker that avoids woo-woo is Code41, which is sort-of a horological BrewDog. Members of its online community vote on designs and get detailed spec sheets for each build, including for the tourbillon it developed in 2022/23 in partnership with Olivier Mory’s BCP Tourbillon.

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Code41 has a fair bit of detail on its website that breaks down the wholesale cost of watch parts. Quality and intricacy move the dial a lot but for a basic build, watch faces start at about $10 and cases can be as cheap as $25. Better quality might mean $50 for the face and $80 for the body, Code41 says.

Watch retail prices are typically six to eight times the assembly price, but Code41 only sells direct so says it applies a mark-up of 3.5 times cost. Its tourbillons sell for about £12,500 ($16,700), implying a wholesale unit price of about $4,800. It’s therefore reasonable to assume that, even for something aiming at the high end, the cost of bits other than the movement probably doesn’t add up to more than $200.

This won’t be true of the Trump Victory Tourbillon, which according to the website features “approximately 200 grammes” of 18 carat gold “across the band, case and buckle,” and is “decorated with 122 VS1 diamonds”. All we need to cost up is the acrylic backplate, the face and some fixings. We’ve gone cautious and added $200 for these items but judging by the photos that’s highly likely to be an overestimation.

Nevertheless, two-hundred grammes of gold is a lot of gold. It’s approximately the weight of a hamster, which puts the Trump Victory Tourbillon on the same weight category as big units like the Rolex Deepsea, which in gold has a US list price of $52,100.

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Gold spot is $2648 an ounce at pixel time so 200 grammes of 18 carat is approximately $19,000 of gold.

Then there are the diamonds. VS1 means a diamond that’s slightly imperfect. It’s five notches below flawless, so if diamonds were rated like bonds it’d be approximately a BBB+.

But there’s not much in the way of information at this end of the diamond market. Certifying the quality of any stone that weighs less than a quarter of a carat (meaning about 4mm in diameter) is a waste of money. The stones encrusting the Trump Victory look to be 2mm at most, so even with the VS1 clarity rating, any estimate of value has to be a guess.

A single pinhead-sized diamond might retail at $15 (or a fraction of that when lab grown). Again, we’ll go cautious. It’s not unreasonable to think that 122 pinhead VS1-clarity stones would cost approximately $2000, though it might be much less.

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Here are the scores so far.

Movement: $4,800
Gold: $19,000
Diamonds: $2,000
Face, fittings, etc: $200

Square the cost off to $25,000 to take into account of purchase timings, assembly, third-party bulk discounts etc and we’re probably in the right sort of ballpark. As Dolly Parton said, it takes a lot of money to look this cheap.

The big thing in Swiss watchmaking at the moment is hyper-premiumisation. The bottom fell out of the watch resale market last year, causing some pain among speculators and meaning waiting lists are much less of a thing, but the big brands have been able to counter lower volumes with higher average selling prices.

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Swiss watch exports data for August showed precious metal sales by value up 21 per cent and steel watch sales down 10 per cent. Watches priced at more than SFr3,000 wholesale ($3500) were the only category growing, thanks probably to gold and platinum watches that cost on average 25 times more than their steel equivalents.

That still only means about 30,000 precious-metal Swiss watches sold per month though, with most of those sales happening in Asia or to Asian consumers. Morgan Stanley estimates that bling only makes up 2.6 per cent of the market by volume.

The top tier of Swiss watches (meaning Rolex, followed not particularly closely by Vacheron Constantin, Patek Philippe, Audemars Piguet and Richard Mille) accounts for three-quarters of the Switch exports by value. That’s the market the Trump Victory Tourbillon is competing in.

And the profit pool is even more unevenly distributed than those figures suggest. Privately owned Rolex, Patek and AP are raking it in, with estimated operating margins of about 40 per cent. But publicly owned watchmakers report operating margins of about 20 per cent for their watch divisions, which in part reflects portfolios that include halo brands. Richemont-owned Lange & Söhne probably can’t turn a profit, for example, in spite of routinely costing $50k+ per unit.

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Morgan Stanley estimates that below the big sellers like Omega (Swatch) and Cartier (Richemont), “a large number of other brands in the listed groups’ portfolios were not covering their cost of capital.”

But of course, the Trump Victory Tourbillon is a built-to-order watch that’s being sold direct to consumers from one website that has a marketing budget of zero, because articles like this are all the publicity it needs.

There are very few operational costs to add to the $25,000 materials cost, so the operating margin is probably not much worse the ~75 per cent gross margin. If Trump sells all 147 Tourbillons that’s an estimated $11mm operating profit. That’s decent.

Nor are 75 per cent margins exceptional. Morgan Stanley estimates that Moonswatch, Swatch’s co-branded fashion disposable range that has sold more than 3mn units in the past two years, has a gross margin of about 80 per cent.

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The difference is that Trump’s watch is in a market segment that’s dominated by a big five plus several hundred loss-leaders and vanity projects. These manufacturers have big fixed costs, as they are mostly vertically integrated, and run very high inventory levels. They are increasingly exposed to a very small segment of an Asia-reliant market that’s highly sensitive to FX, policy stimulus and capital controls. This makes them more fragile to any sustained downturn, in which operational degearing will be brutal.

Does that make Trump’s asset-light, demographically targeted approach to hyper-premiumisation a potential way forward for the Swiss watch industry and the wider luxury goods sector? No. Of course not.

Further reading:
Is that the sound of a luxe watch bubble popping? (FTAV)
What the Watches of Switzerland warning says about Rolex demand (FTAV)
Watches have stopped (FTAV)

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I quit £500-a-month house share to live for FREE in 10ft derelict caravan… one wall was caving in but it’s perfect – The Sun

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I quit £500-a-month house share to live for FREE in 10ft derelict caravan… one wall was caving in but it’s perfect – The Sun

A FILM-maker quit his £500-a-month houseshare to live for free in a static caravan.

Using YouTube videos for inspiration, Benn Berkeley, 38, transformed the derelict 44ft shack into a cosy log cabin.

Benn Berkeley transformed a run-down static caravan into a quirky log cabin

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Benn Berkeley transformed a run-down static caravan into a quirky log cabinCredit: SWNS
He transformed the shack himself using YouTube videos for inspiration

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He transformed the shack himself using YouTube videos for inspirationCredit: SWNS
He had to rip the walls out after discovering an issue with damp

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He had to rip the walls out after discovering an issue with dampCredit: SWNS

Despite having to rip all of the walls out after discovering it was riddled with damp, Benn now says that he’s created his dream home.

The 38-year-old lost all his work prospects as a freelance film-maker in 2020 due to the pandemic.

At the time, he was living in a house share spending £500-a-month on rent but realised he wanted a different lifestyle.

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In August 2020, his brother took over a farm which had a static caravan on and asked Benn if he wanted it.

read more on off-grid life

Benn leaped at the opportunity despite admitting it was a “fixer-upper” and started working on gutting out the caravan in September 2020.

After four months, he had transformed it into a off-grid cabin complete with a log burner.

Benn said he did everything apart from the electrics and plumbing himself after learning everything on YouTube.

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Benn, from St Ives, Cornwall, said: “It wasn’t pre-planned, it was forced out of Covid.

He said: “When Covid happened, I lost all my work. It was a mix of having nothing to do and the opportunity to do up this static home.

“I had zero experience in building and DIY but there was an opportunity to do it up and live in it so I jumped in head first.

I live in a village named one of the best places to live in the UK

“Everything we learned was through YouTube, it was a really amazing and empowering experience,” he added

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Benn spent £10,000 on the renovation – a fraction of the price of buying a property in the area.

Proudly speaking of his work, he said: “I completely gutted the place out.

“It is 44ft by 10ft. We had to support one of the walls as it was caving in – the first job was to make it safe.

“We changed the windows and then we realised there was a damp issue so we ripped all of the walls out – it was a completely open space.

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“From there we had free reign to do what we wanted, originally it was two bedrooms with a bathroom and kitchen.

It is a very simple lifestyle which I think we have lost.

Benn Berkeley

“All of that went, we now have a double bedroom, bathroom, corridor and open plan living and kitchen space.”

Since moving into the cabin, Benn has made the place off-grid.

He heats his home with a log burner, uses gas bottles for his oven and his electricity comes from solar panels on the farm.

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He said: “It is a very simple lifestyle which I think we have lost.

“There is an element of simplicity when you are living a life like this.

“I can govern myself a lot more, I am not pressed into working a certain amount of hours a week as I know my outgoings each month.”

The renovation cost him £10,000 and he now lives entirely off-grid

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The renovation cost him £10,000 and he now lives entirely off-gridCredit: SWNS
The mobile home before Benn got to work

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The mobile home before Benn got to workCredit: SWNS
The cabin is on his brother's farm in St Ives, Cornwall

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The cabin is on his brother’s farm in St Ives, CornwallCredit: SWNS
It has a log burner and runs off gas bottles

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It has a log burner and runs off gas bottlesCredit: SWNS
Other than plumbing and electrics, he did all the work himself

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Other than plumbing and electrics, he did all the work himselfCredit: SWNS

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FTfm: Pensions

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Japan’s biggest pension fund faces more pressure to deliver; self-employed workers struggle to bridge gap in retirement savings; and investors seek better means to force action on climate

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