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London Bus by permission of Londons Transport Museum; all other images are from The Baring Archives.
Baring Asset Management Limited December 2011.
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Barings initially traded nationally and
internationally in commodities ranging from woollen cloth
and timber to spices and silks, and provided agency and
banking services to other merchants. In the eighteenth
century its national network of merchant clients extended
as far as Exeter and Bristol in the West, and Newcastle,
Leeds and Manchester in the North.
But almost from the day of its f ormation, Barings
also built links with merchants in all the major ce ntres in
Western and Southern Europe, and by around 1800 had
extended its client base to bo th North and South America,
and to India and China.
During the years of the Napoleonic Wars, from
1793 to 1815, Barings began issuing securities. It became a
major financial contractor to the British Government,
initially financing its war effort and went on to act as
bankers and bond issuers in London for numerous
govern ments . The p roceed s of th ese iss ues we re oft en use d
for the de velo pment of infras truc tu re for citie s aroun d
the world.
In 1803 Barings undertook a transaction of the
utmost magnitude and importance in financing the
Louisiana Purchase, in which the United States doubled
its size by purchasing over one million square miles of
territory from France.
Early connections were established with
pionee ring railway compan ies throughout the world and
Barings was responsible for financing the construction of
the earliest railways in the USA, Canada, Russia, France,
China, Argentina, Chile and elsewhere.
At this time the fir m als o de velo ped a priv ate
banking business especially for individuals associated
with its existing client base. These included kings, prime
ministers, authors and even fictional characters such as
Phileas Fogg!
While it strengthened links with businesses at home
in the UK and Ireland, for example advising on the flota-
tion of Arthur Guinness in Dublin, in the 20 th century
Barings continued to act as a major financier of
international trade and issuer of sovereign and co rporate
debt and equity. The bank also financed the Imperial
Russian Governments war needs during the First World
War and advised on the reconstruction of the British
manufacturing industry in the 1920s and 30s.
In the 1950s, asset management developed as an
integral part of investment banking in the UK a nd Barings
was amongst the first to realise the potential and set up
an Investment Department in 1955. Early clients were
drawn from its corporate and sovereign connections but
pe nsi on f un ds an d cha rit abl e in sti tu tio ns we re so on
added. In the 1970s the international dimension was
extended with t he establishment of offices in the Far East,
North America and Europe.
In 1989, all of Barings asset management
activities were consolidated within Baring Asset
Management based at 155 Bishopsgate in the City
of London.
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Front cover (left to right):
Sir Francis and John Baring and Charles Wall1804, by Sir Thomas Lawrence
This portrait shows the partners at the height of Barings power.
The letter held by Sir Francis and the ledger both carry the
name of Hope & Co., leading Dutch merchants at a time when
Amsterdam dominated the international capital market. Barings
greatly benefited from this connection in its early years and
the relationship continued until well into the 20thcentury.
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Baring Asset Management a History
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Sir Francis BaringFrancis Baring (1740-1810) established Barings in 1762 withhis brothers John and Charles. He led the business until 1804,
with Barings emerging as London's pre-eminent merchant bank
by 1800. He advised prime ministers, was appointed Chairman
of the East India Company and was knighted in 1793. On his
death he was described as "unquestionably the first merchant
in Europe; first in knowledge and talents, first in character
and opulence".
by Sir Thomas Lawrence
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Alexander Baring,1st Lord Ashburton
Alexander Baring (1774-1848) succeeded his father, Sir Francis,
as senior partner. He was Barings' first resident representative
in America and played a key role in the Louisiana purchase.
Throughout the Napoleonic Wars he raised finance for Britain
and its allies, and led the financial operations which paid the
French reparations. In 1818, the Duke of Wellington commended
Alexander, saying that he had "to a certain degree the command
of the money market of the world". He was created Lord
Ashburton in 1835.
by Sir Thomas Lawrence
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Commodity TradingOn formation, Barings derived its profit from buying and sellingcommodities internationally. It soon diversified into providing
services to other merchants including arranging insurance and
warehousing, and trading in commodities. This led to the
provision of banking services - such as making and collecting
payments, and providing loans and guarantees - the earliest
examples of merchant banking.
The Royal Exchange, City of London, c. 1762
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The Louisiana PurchaseIn 1803, needing to raise funds for its war effort in Europe,France sold the 1,000,000 square mile Territory of Louisianato the USA for US$15 million. Barings and Hope & Co. financed
the sale, raising capital through the issue of 6% US government
bonds in London and Amsterdam. The acquisition doubled the
size of the USA in 1804, and 13 states were formed in whole or
in part out of the Territory. To this day it remains the greatest
real estate transaction in history.
Late 18th century map of the Louisiana Territory by John Senex and
(below) the extent of the territory on a modern map of America
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Sovereign ClientsInitially Barings restricted its securities business to the issueof British or allied government bonds to finance war
expenditure. After 1815 this became immensely important
business when Barings sovereign clients included the
governments of the USA, Canada, Russia, Argentina, Chile,
China, Austria and Italy. The proceeds were used for general
government expenditure, the construction of transport
infrastructure and the building of cities.
A tombola used for selecting Buenos Aires 1824 bonds for redemption
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Financing RailwayConstruction
In the early 19thcentury, rapidly expanding railways around the
world required immense funding which emerging economies
borrowed from the European capital markets. Under Thomas
Baring (1799-1873), the company specialised in issuing railway
company bonds in London, financing some of the world's
earliest railways. In 1853, according to one US railroad manager,
there was only one man to guide action in important
financial matters. Ask about anything and the reply is What
does Mr Thomas Baring say or think?
An illustration of transport infrastructure taken from a share certificateissued in March 1895 by the Chicago Railway Terminal Elevator Company.
(Below) a token belonging to Thomas Baring giving him free travel on theGrande Societe des Chemin de Fer Russes. Barings partners sometimesbecame non-executive directors of the railway companies it financed and
as such received free travel facilities.
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Centre Spread:
Articles of PartnershipJohn and Francis Baring & Co. was established on ChristmasDay 1762, opened for business on New Years Day 1763 with a
capital of 4,200 and showed first year profits of 423. It
acted as London agents to the Baring family's much larger
textile business in Exeter. Over the next 250 years, Barings
became a leader in the London financial market and is now one
of the longest-established financial services companies in the
world.
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MerchantShipping
Throughout its first 100 years, Barings owned and managed
merchant ships. In the 1870s its fleet comprised three tea
clippers - the Norman Court, the Black Prince and the Chaa
Sze. These were amongst the finest of their kind, with the
Norman Court being a sister ship of the Cutty Sark. The clippers
took cargoes of manufactured goods to the Far East and
Australia and returned to London with cargoes of tea.
Bills of Lading of the Norman Court, a sister ship of the Cutty Sark (1872), and(below) the route of its eighth voyage (1877-79)
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Building of CitiesIn the late 19thcentury, the worldwide emergence and growthof cities meant that the construction of public buildings and
infrastructure such as transport facilities, water supply and
drainage, required financing. Barings clients included many
cities such as Boston, Buenos Aires, Constantinople,
Montevideo, Montreal, Moscow and Tokyo, issuing government
bonds and on-lending the proceeds to municipalities, which
gradually began borrowing directly from the market.
Coupons for municipal bonds payable at Barings
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Private ClientsBarings provided international travellers with letters of creditenabling them to draw funds from the firms excellent networkof correspondent banks. In the 19thcentury, travelling clients
included Nathaniel Hawthorn, Henry Longfellow and
Washington Irving, as well as the fictional Count of Monte
Cristo and Phileas Fogg. Others, notably Napoleon III, James
Monroe, the Prince de Talleyrand, and the King of the Belgians
were associated with the firms sovereign clients.
(Clockwise from top left) Napoleon III, a cartoon appearing in Vanity Fair in 1869;the Prince deTalleyrand, 1835; a plate from Around the World in 80 Days;
Nathanial Hawthorn, 1850; a promisory note signed by James Monroe.
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UK Corporate FinanceIn the late 19thcentury, Barings began undertaking corporatefinance work within the UK and Ireland. In 1886, they advised
on the flotation of Arthur Guinness Son & Co. of Dublin, then
the world's largest brewing business. The flotation of
Whitbreads followed shortly afterwards. Barings also issued
debentures to finance the construction of the Manchester Ship
Canal and the docks at Liverpool, as well as the introduction
of modern buses to London.
The opening of the Manchester Ship Canal by Queen Victoria in 1894 and (below) an RT bus - the
first modern model to be introduced to London.
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In the 1920s and 1930s, Barings concentrated on the finance
of British industry and infrastructure. The company financed
the extension of existing underground lines into the suburbs
and the rebuilding of busy central London stations for the
Underground Electric Railway Companies of London Ltd. It also
advised on the restructuring and rationalisation of industry -
notably on the consolidation of much of the Lancashire cotton
textile industry into the Lancashire Cotton Corporation Ltd.
FinancingBritish Industry
1930 - Map of Extensions to the London Underground, which
along with a reconstruction project, was financed by Barings
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Investment ServicesBy the 1950s, Barings had for some time provided security
management services and given informal investment advice,
especially to private clients. In 1955, this work was reorganised
through the creation of an Investment Department which grew
rapidly, acquiring new clients and developing a global network
of offices. In 1973 the Hong Kong office opened, followed by an
American office in Boston six years later, to help clients invest
in the rapidly emerging markets.
Baring International Investment Management Limited was established in Hong Kong in 1976
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1989 to present dayAfter three decades of rapid growth, Barings consolidated allinvestment management activities within a new holdingcompany, Baring Asset Management Limited, and moved to
new premises on Bishopsgate in the City of London.
Today, Baring Asset Management is an international investment
management firm with offices, clients and business lines
spanning the worlds major markets. Barings provide investment
management services in developed and emerging equity and
bond markets, and hold a Queens Award for Enterprise 2010 in
the International Trade category the UKs most prestigious
award for business performance.
Since the foundation of Barings in 1762, the common thread
linking the past to the present has been an ability to help clients
benefit from changes in the markets through innovation. This
tradition continues today as Baring Asset Management invests
across global markets, seeking out attractive new areas of
investment on behalf of clients.
The current view from Baring Asset Managements building on
Bishopsgate, London. It overlooks Devonshire Square (at the bottom
left-hand side of the picture), the site of the original offices (inset).
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Head OfficeBaring Asset Management, 155 Bishopsgate, London EC2M 3XY,
Tel: +44 (0)20 7628 6000, Fax: +44 (0)20 7628 7928,
www.barings.com
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For lack of space the following family partners are not included in the family tree:
CCCCCharles Bharles Bharles Bharles Bharles Barararararing Ying Ying Ying Ying Yoooooung (1801 - 82),ung (1801 - 82),ung (1801 - 82),ung (1801 - 82),ung (1801 - 82),grandson of CCCCCharles Bharles Bharles Bharles Bharles Barararararing (17ing (17ing (17ing (17ing (17444442 - 1829)2 - 1829)2 - 1829)2 - 1829)2 - 1829)by his daughter Emily
EEEEEvvvvvelelelelelyyyyyn Bingham Bn Bingham Bn Bingham Bn Bingham Bn Bingham Bararararar ing (1893 - 1966)ing (1893 - 1966)ing (1893 - 1966)ing (1893 - 1966)ing (1893 - 1966), great grandson of WWWWWililililil llllliam Biam Biam Biam Biam Bararararar ing (17ing (17ing (17ing (17ing (1779 - 18279 - 18279 - 18279 - 18279 - 1820)0)0)0)0) , fourth son of SiSiSiSiSi r Fr Fr Fr Fr Francis Brancis Brancis Brancis Brancis Bararararar in gin gin gin gin g
George Rowland
(1918-91)3rd Earl of
Cromer
issue
Thomas (1733-58) Sir Francis (1740-1810)Charles (1742-1829)
2 sons 7 daus.
Cecil
(1864-1934)3rd Baron Revelstoke
Windham
(1880-1922)Evelyn
(1903-73)
1st Baron
Howick
John Baring of Exeter
(1697-1748)
John (1730-1816)2 sons 4 daus.
Elizabeth (1744-1809)1 son
Sir Thomas (1772-1848)Alexander (1774-1848)
1st Baron Ashburton
Henry (1776-1848)1st Marriage
3 sons 2 daus.
2 sons 5 daus.
Francis (1800-68)
3rd Baron Ashburton
3 sons 5 daus.
Alexander
(1835-89)4th Baron Ashburton
1 son 1 dau.
Francis
(1866-1938)
5th Baron Ashburton
4 sons 2 daus
Alexander
(1898-1991)
6th Baron Ashburton
4 daus.
Francis (1796-1866)
1st Baron Northbrook
Thomas
(1799-1873)
John
(1801-88)
Charles
(1807-79)
1st marriage
5 daus.
2nd marriage
1 son 1 dau. 1 son 2 daus.Thomas
(1831-91)
2nd marriage
Francis
(1850-1915)
1 son, 1 dau.
Thomas (1826-1904)1st Earl of Northbrook
issue
2nd marriage
Edward (1828-97)
1st Baron Revelstoke
Thomas (1839-1923)
2 sons
Evelyn (1841-1917)1st Earl of Cromer
1st marriage
4 sons, 1 dau.William (1799-1864)
2nd Baron Ashburton1st marriage
1 son2nd marriage
1 dau.
1st Marriage
John
(1863-1929)2nd BaronRevelstoke
Everard
(1865-1932)
Maurice
(1874-1945)
Hugo
(1876-1949)
2 sons 3 daus. Rowland
(1877-1953)2nd Earl of
Cromer
2nd
Marriage
issue issue
issue issueFrancis
(1909-40)
Sir Edward Reid
(1901-72)
issue issue
John
(b. 1928)
7th Baron Ashburton
Peter
(b. 1935)
Nicholas
(b. 1934)
Charles
(b. 1937)2nd Baron
Howick
issueissue
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