Sergey Brin +LArry

va l u e s
va l o r i ⪦ሬ
The magazine for mind, money & personalities
Deutsche Bank Wealth Management
03 – 2015 / 16
The magazine for mind, money & personalities
GLOBAL HEROES
03 – 2015 / 16
Sergey Brin
EMEA
+
Larry Page
Photos: Kim Kulish / Corbis; David Black
Few companies have
changed and penetrated
­modern life as much as
Google. But Larry Page
and Sergey Brin are
nowhere near finished.
The Google founders
want to invent the
future, while also solving
some of humanity’s
biggest ­problems.
SWISS First
Discover a new world
before you even get there.
SWISS First
Discover a new world
before you even get there.
v a l u es
va l o r i ⪦ሬ
WERTE
The magazine
for mind, money
&
personalities
Dedication
Inside Google: Sergey Brin and Larry Page reach for the moon
Nigeria: Africa’s
Klaus Schwab: Ideas for a better world
John Elkann: How
new powerhouse
Next-Gen: Three women changAgnelli’s grandson conquered new markets
Made in Switzerland: A visit to Watch Valley
Khatia
ing the face of China
Buniatishvili: Between discipline and passion
Since 2013, our Born to Be youth engagement
programme has helped change the lives of
more than 1.2 million young people through
over 130 education-led projects in 19 countries.
Born to Be helps young people reach their full
potential by developing skills, raising aspirations
and providing access to opportunities.
See Born to Be in action around the world:
DB.COM/LIFECHANGER
EDI TORI AL
Welcome to
Deutsche Bank
Wealth Management
EMEA
DEAR READER,
Dedication is a quality that is transferable
through a number of mediums. It begins
with concise understanding of the wishes
and goals concerned, focus on the task at
hand, and not giving up even when the
odds may not fall in your favor. Above all,
however, it involves sustained commitment
to go beyond what is being asked for,
demanding more of one’s self to exceed
expectations, and surpass targets.
— Take our Deutsche Bank colleagues in
Eindhoven, for example. A colleague from
the Global Transaction Banking Division
foresaw that one of his clients – a local
entrepreneur – would shortly need Wealth
Management services as well. Our inter­
national Wealth Management investment
capabilities and the proposed solution
convinced the client and enabled Wealth
Management to extend Deutsche Bank’s
relationship with the said client. Crossdivisional collaboration and dedication
played key roles in the relationship
expansion.
— Serving within a business landscape
which is continuously evolving, we recognize
more than ever the need to adapt and
harness our dedication to deliver the
highest quality solutions and expertise for
our clients within the parameters permis­
sible to us.
— In this newest edition of WERTE, we
have captured the minds of prominent
figures at the helm of devoted business
ventures alike, including those from within
our Wealth Management business that are
providing truly unique service solutions.
We introduce Fabrizio Campelli as the new
ealth
Global Head of Deutsche Bank W
Management. WERTE takes a look inside
Google with none other than Sergey Brin
and Larry Page to discuss the future of the
multinational technology powerhouse. Our
in-house expert, Dr. Stefan Kolb, Head of
Deutsche Private Port, reveals all about his
bespoke service software platform which
grants clients a transparent overview of
their overall wealth. John Elkann shines a
light on his strategy and experiences as
the heir of the family-run automaker, Fiat
Chrysler. Last but certainly not least, we give
our Market Outlook for the year 2016.
ERTE
— I hope that you relish reading W
and that these stories stimulate further
innovation for your business.
— As ever, we would be delighted to learn
of any topics you would like to be consid­
ered for future W
ERTE publications.
Marco Bizzozero
Head of Deutsche Bank Wealth Management
EMEA (Europe, Middle East & Africa)
CEO Deutsche Bank (Schweiz) AG
Sincerely yours,
MARCO BIZZOZERO
This advertisement has been approved and/or communicated by Deutsche Bank AG or by its subsidiaries and/or affiliates (“DB”) and appears as a matter of record only.
Deutsche Bank AG is authorised under German Banking Law (competent authority: European Central Bank and the BaFin, Germany’s Federal Financial Supervisory Authority),
and in the United Kingdom, by the Prudential Regulation Authority. It is subject to supervision by the European Central Bank and by BaFin, Germany’s Federal Financial
Supervisory Authority, and is subject to limited regulation in the United Kingdom by the Prudential Regulation Authority and Financial Conduct Authority. Details about
the extent of our authorisation and regulation by the Prudential Regulation Authority and regulation by the Financial Conduct Authority are available on request.
Copyright © Deutsche Bank 2016.
5
Dedication
“It took me four years to paint
like Raphael, but a lifetime to
paint like a child”
Content
03 – 2015 / 16
PABLO PICASSO
26 / IDEAS FOR
A BETTER WORLD
THINK
GLOBAL
COVER FOLDER /
GLOBAL HEROES
How Google founders
Sergey Brin and Larry Page
are changing the world
8 / PEOPLE
Six people from
four countries with
heart and devotion
11 / FOCUSING ON
Clients
An interview with Fabrizio
Campelli, Global Head
of Deutsche Bank
Wealth Management
16 / AFRICA’S No. 1
How Nigeria is becoming
the powerhouse of
the entire continent
53 / Keeping it in
the family
Klaus Schwab on
the Davos ideas factory,
visions for Europe, and the
future of capitalism
How Deutsche Bank
Wealth Management
can help clients deal with
generational change
32 / daily overview
58 / KNOW WHERE
YOU STAND
Fascinating images
from space remind us
that we have to take better
care of our planet
38 / THE GRANDSON’S
BIG MOMENT
How the Agnelli heir
John Elkann conquered
new markets
43 / Your Power to
Decide
Marco Busetto on Wealth
Advisory Mandate
44 / THE UNICORN
CLUB
Twelve young entrepreneurs
on the way to becoming
b­ illionaires
46 / OUtlook
Prospects for the stock and
bond markets in 2016 and
how investors can properly
position themselves
Stefan Kolb on the work of
Deutsche Private Port
60 / quick chat
Eight questions for the pianist
Khatia Buniatischvili, the new
star of the classical world
62 / WORLD ART
Manifesta 11, Fischli & Weiss,
Georgia O’Keeffe, Art Basel –
what’s happening on the
art scene
64 / ART KNOWS
NO LIMITS
ACT
LOCAL
14 / regional view
Deutsche Bank
Wealth Management
in the region
48 / POLO IN A
STUNNING SETTING
St. Moritz and the
“sport of kings”
50 / THREE WOMEN
FOR CHINA
How Zhang Xin, Judy Leissner,
and Masha Ma are changing
the face of their country
54 / Made in …
Artist Anish Kapoor and his
huge sculptures
A visit to
Switzerland’s W
atch V
alley
67 / What’s Hot
68 / local trend
Four tips from Dubai,
­Indonesia, Italy, and Japan
71 / global village
Tips and events for
the next six months
Gin is in – how a spirit
from London is conquering
the world
CONTACTS
Always nearby –
Deutsche Bank
Wealth Management
No other artist in the world represents
dedication and passion more impressively
than Picasso. He is thought to have
created more than 50,000 paintings,
graphics, drawings, ceramics, and
sculptures in his lifetime.
6
Photo: Gjon Mili/The LIFE Picture Collection/Getty Images
7
W E R T E 0 3 – 2 015 / 1 6
6
PEOPLE WITH
HEART AND DEVOTION
4
1
2
6
5
3
GENEVA
A HEART FOR START-UPS
1
Alisée de Tonnac, Seedstars World
— As her colleagues sat down during lunch and worked out
how long they still had to work before they could retire, Alisée
de Tonnac had had enough. The young Frenchwoman quit her
job as product manager at L’Oréal and embarked on a journey
to discover the world – and herself. Along the way she met
many interesting people with good business ideas and visions,
but no capital.
Nowadays Alisée de Tonnac helps precisely such young company
founders. As co-founder and managing director of the Seedstars
World start-up competition, with its team of twelve people, she
brings the next generation and investors together. She seeks
them in conjunction with regional partners in 36 countries and
finds them in Nigeria, Indonesia, or Russia. T
hanks to both global
and local networking, Seedstars World should become the first
place people can turn to when they wish to recruit, invest, or
export in emerging markets. “As such, Seedstars will become a
center for market information and our competition will become
an Olympiad for start-ups,” says the hopeful 28-year-old.
Seedstars World selects winners by industry, which is of interest
inners can
to companies that sponsor the competition. W
expect to receive anything up to 500,000 US dollars. In addition,
Seedstars W
orld itself invests in minority interests in the
winning businesses, such as the Nigerian financial technology
developer SimplePay, a kind of PayPal established for Africa.
www.seedstarsworld.com
8
T H I N K G L OB A L p eop l e
3 MEXICO CITY
SAVING WATER WITH MIST
Carlos Gómez Andonaegui, nebia
2 detroit
SLEEPING BAG COAT FOR HOMELESS
Veronika Scott, empowerment plan
— For the American Veronika Scott, a term paper
became her mission in life: During her design
degree a professor gave her the task of inventing a
product that helps to alleviate hardship. Scott
immediately thought of the many homeless people
in her hometown of Detroit. So she visited an
emergency shelter and asked the people there
what would make their lives easier. She did it three
nights a week for three months. In the end it was
clear to the then 21-year-old what the people
needed: a waterproof coat that provides heat and
transforms into a sleeping bag at night – and that is
how her “EMPWR coat” came about. The outer
layer is made of a lightweight material that is also
used to insulate houses. The inner layer is made of
old woolen blankets from the US Army. But Scott
wanted even more; she wanted to help on a
long-term basis. Together with her friend Erika
George (on the left in the photo) she founded the
Empowerment Plan aid organization. “Our mission
is to train homeless people as seamstresses, offer
them a permanent job, and thus make them more
independent,” says Scott. Neither she nor any of
the homeless people had sewn before, but the plan
took off: Today Scott employs 22 people and
produces 6,000 sleeping bag coats a year. She has
already paid 45,000 US dollars in micro wages and
still finances everything through donations. The
plan to sell the product in retail stores in future
should give the social program a more solid
foundation.
www.empowermentplan.org
Warming
Waterproof
Folds down and turns the coat
into a sleeping bag.
Photos: Nicolas Schopfer ; Malte Jaeger/laif; PR; William McLeod (2)
Visionary Andonaegui developed
the Nebia shower head with the
help of his father.
“Criticism
only made our
product better.
Commitment
means never
­g iving up”
— When Carlos Gómez Andonaegui wants to convince someone of
the benefits of Nebia (similar to the Spanish word niebla and the Italian
word nebbia), he stands them under the shower. That is what he did
with T
im Cook from Apple and Eric Schmidt from Alphabet – both are
now enthusiastic investors. The Mexican has invented an extremely
economical shower head that uses 70 percent less water by spraying
a damp mist. T
he idea came to him while working as a manager at a
sports club in Mexico. “Water consumption was responsible for the
biggest expense.” An alternative that was at once efficient and effective
did not exist. So Andonaegui decided to invent such a system himself.
It took him and his team five years to perfect Nebia. “There were
continuous doubts about the idea, but the criticism only made our
product better.”
But success also takes conviction, so the 40-year-old moved to Silicon
Valley to attract financially strong backers by means of crowdfunding
in the Mecca of visionaries. And he succeeded: Investors made available
3.1 million US dollars to enable him to bring Nebia to market. “I
believe that I have a responsibility to make the world a better place,”
says Andonaegui today, “and I believe that it’s possible to be profitable
at the same time.”
www.nebia.com
9
Thi n k g L OB A L Fabri z i o Camp el l i
W E R T E 0 3 – 2 015 / 1 6
london
jimmy choo FOR GENTLEMeN
4
Clients
Take
Center
Stage
Sandra Choi, jimmy choo
5 palo alto
GLOBAL PLAYER OF THE FUTURE
Alexander Karp, palantir
— “He doesn’t have a technical degree, he doesn’t have any
cultural affiliation with the government or commercial areas,
his parents are hippies.” That is how one of the leading minds
of Silicon Valley describes himself. And that says a lot about
the 48-year-old – about humor and the high art of understatement, but nothing about the fact that the man with the curls
is the clever mind behind the data analysis giant Palantir.
Karp grew up in Philadelphia and studied law and philosophy
before he invested a small inheritance in start-ups and made
hrough his friendship with Peter Thiel, one of
a fortune. T
the founders of PayPal, he came to Palantir. The company
“tracks down” terrorists on the Internet with the technology
that PayPal uses to secure its financial transactions. The
software can find connections in various sources that a
person would never detect. Critics say it is a mass surveillance
tool, but investors laud Palantir as a global player of the
future and estimate the company to be worth 20 billion
US dollars.
www.palantir.com
— When Sandra Bullock, Kristen Stewart, and Naomi
Watts make their way along a red carpet, then it is usually in
vertigo-inducing high heels made by Jimmy Choo. Only few
people are aware that in reality a woman, Sandra Choi, is the
creative mind behind the famous label. T
he 46-year-old with
the sassy, short hairstyle and the whimsical smile has been
at the company for 24 years and has been creative head for
two years. This is all the more astonishing, because she has
never had anything to do with the glittering world of Hollywood. “I didn’t grow up with luxury,” says the London-based
mother of two children, “I have simply developed an understanding of this world.” Although Choi was born in Great
Britain, she grew up with her grandparents in Hong Kong.
As a teenager she helped out in her uncle’s workshop while
studying fashion design. At some point she was working
solely for her uncle. “I was just there and I thought: I would
be just as well off staying. T
hat is a very Chinese attitude.”
Sandra Choi said to herself that it doesn’t always have to be
high heels and in doing so has given the label a new future.
With “Choo.08” she has launched a range that is less glitzy
and sometimes features flat shoes. She has also introduced a
made-to-order collection, allowing customers to choose the
material, color, and heel height themselves. W
ith devotion
and in the face of all the critics Choi has also applied herself
to a range for men. With success: “The business is growing
faster than any other area.”
www.jimmychoo.com
10
Deutsche Bank veteran
Fabrizio Campelli
has taken the reins of
the Deutsche Bank
Wealth Management
business. Mr. Campelli
talked with WERTE about
his journey, his vision
for Wealth Management,
and his commitment
to clients.
new york
NO FEAR OF
GREAT MEN
6
Megyn Kelly, fox news
TEXT JOELLEn PERRy
PHOTOS gEnE gLOvER
— Powerful men fear the
“Megyn Moment”. T
hat is
when Megyn Kelly grills them
with total commitment.
Recently US presidential
candidate Donald Trump felt
the full force of the summa
cum laude lawyer and mother
of three children as she took him to task for his misogynistic
comments in front of 24 million TV viewers. Kelly’s probing
questions, which rattled T
rump, and her calm reaction to his
subsequent provocations earned her worldwide recognition. “I
was brought up in an environment where my opinion counted,”
explains the 45-year old. She has found her stage on T
V – although only at the second attempt. She previously worked as a
business lawyer, but noticed after six years that she wasn’t
really passionate about it. So she became a reporter and
worked her way up to become newsreader on Fox
V show “The Kelly Files,” “TIME”
News. Thanks also to her T
magazine ranks her as being among the one hundred most
influential women in the world.
www.foxnews.com
Photos: Mike Marsland/WireImage; Eric Millette/Forbes Collection/Corbis Outline; Jesse Dittmar for The Washington Post via Getty Images
Anish kapoor, Turning the World Upside Down iii, 1996 © Anish kapoor. All Rights Reserved, vg Bild-kunst, Bonn 2016
11
thin k g L OB A L Fabri z i o Camp el l i
W E R T E 0 3 – 2 015 / 1 6
Mr. Campelli, you’ve been with
Deutsche Bank for 12 years in a
series of strategic and operational
leadership roles. How will that
experience influence you in your
present position?
One of the most important things I
bring to this role is the passion I have
for Deutsche Bank in general and for
client relationships in particular. I spent
several years in Corporate Finance,
working in a number of different roles,
including that of Global Chief Operating
Officer for Corporate Finance Coverage. In these roles I learned just how
important it is to nurture a relationship
with our clients as a trusted advisor.
I’ve also been heavily involved on the
strategic side, namely as Head of Group
Strategy. From that experience, I know
the importance of having a clear vision
for this business, particularly with
respect to the extremely competitive
landscape in Wealth Management. Our
clients have many options, so we need
to be very aware of what we’re good
at and how we can create lasting value.
I am committed to making unparalleled
quality in client experiences and cutting
edge solutions a core ethos at
Deutsche Bank Wealth Management.
Speaking of strategy, can you share
with us your vision for the new
Deutsche Bank Wealth Management
organization?
Deutsche Bank is committed to
investing in this business, which has
been core to our mission since the
bank’s foundation. I see three major
areas of focus for the future of Wealth
Management. First, we need to consider
the fact that the industry’s risk appetite
has been dramatically altered in the
aftermath of the financial crisis.
Operating safely and with integrity in
this environment in a way that creates
sustainable performance and rebuilds
trust with clients and other stakeholders is key. Another priority involves
investing in our ability to engage,
interact, and deliver services more
effectively to our clients through
technology-enabled solutions. Finally, we
want to ensure that all of our clients
have access to the wealth of best-inclass solutions available across the bank.
If we can deliver seamlessly against that
bouquet of offerings, we can deepen
our relationship with some of our
12
most sophisticated clients and make
Deutsche Bank their primary bank.
Another part of this focus will be grow­ing invested assets in critical geographies and defined client segments,
including in Asia and the US, where the
High Net Worth segment is expanding
rapidly.
Delivering on these aspects means
you’ll need to cooperate closely with
colleagues outside of Wealth
Management.
Absolutely. The timing is quite good to
be offering something so comprehensive, because our new management
team is very committed to offering
clients a more holistic bank experience.
And Deutsche Bank has very unique
expertise to offer to wealth management clients. When a client asks for
something truly complex and tailored,
something other banks might struggle
to structure, we can deliver. For
example, as clients’ demographic needs
evolve, our ability to provide outcomeoriented wealth management solutions
is backed up by our sophisticated Asset
Management offering. Our ability to
provide sophisticated structured lending
products is backed up by the quality of
our Capital Markets division. Our value
for entrepreneurs, to highlight one of
our strongest client segments, is backed
up by the fact that we have a top-quality
Corporate Finance franchise that has
a very strong nexus to Wealth Management. Ensuring our clients benefit from
the breadth of expertise across the
bank is another instance in which my
broad network at Deutsche Bank will
be an asset. I’ve spent years building
relationships with people here who will
bend over backwards to help the entire
Wealth Management team deliver for
our clients.
How will the bank’s new
organi­zational structure impact
Wealth Management?
Deutsche Bank as a whole has been
reorganized around client segments.
There is a clear commitment to change
the way we operate to deliver to clients
in the most effective way. And while
Wealth Management has been among
the most client-centered of the bank’s
divisions, I aim to strengthen our client
focus further. Technology-enabled
wealth management services are key
here. In 2016, the agenda is packed with
releases for IT solutions that will enable
us to deliver very advanced investment
advice and tools, which will in some
cases transform the way we engage with
clients. Our renewed client focus also
means a renewed commitment to
delivering best-in-class solutions. Social
impact investments, for instance, are
becoming much more relevant for many
of our clients. Goal-based performance
products as opposed to absolute
performance products are very relevant
to clients pursuing certain personal
milestones. We aim to deepen our
understanding of our clients’ individual
needs and requirements, with the
ultimate goal of delivering top-tier,
tailored recommendations across the
board.
“There is a clear commitment
to enhance the way we operate
to deliver to clients in the
most beneficial way”
What will change in clients’
day-to-day experience?
For us and our clients, continuity and
partnership remain the top priority.
Although the Wealth Management
division is separating from the Asset
Management division, the relationship
between the two will not change. At
the same time, we are also creating a
new adjacency to the retail part of the
bank, in the form of a new division
called Private, Wealth & Commercial
Clients. One of the strengths of the
Asset & Wealth Management organization was the ability to harvest the best
minds in the business to develop
first-class investment advice, from
macroeconomic analysis to strategic
asset allocation and portfolio construction. We will continue to harness
exactly the same minds to deliver one
investment view, particularly for those
aspects that are relevant for both
institutional and individual clients. So
our clients should feel a seamless
continuation of their ability to get
state-of-the-art advice and products,
along with a full and uncompromising
commitment to open architecture.
In the medium term, this commitment
to open architecture should manifest
itself in a stronger product organization,
which will give clients access to a
broader set of solutions, within and outside the bank. Clients’ interactions with
us should become more seamless, as
technology enables smoother state­ment
delivery and more sophis­ti­cated dialogs
fabrizio campelli
Global Head of
Deutsche Bank W
ealth Management
with advisors – including simulating
portfolio trends and making live
portfolio changes. Our technological
investments will always be made with
an eye toward providing a more
differen­tiated service. But as important
as technology is, our clients themselves
are the heart of all our efforts.
Will the bank’s international focus
change?
The structural changes emanating from
the financial crisis mean that Deutsche
Bank, along with all relevant financial
institutions, has had to become more
selective. But that doesn’t mean we will
be any less international than before.
Deutsche Bank’s history is actually
steeped in internationalism – we got
our start supporting the international
aspirations of German mid-size com­panies. We have a real commitment to
international clients and an international
business model, which is evident in our
culture and management team. As an
Italian national who speaks German and
studied in the United States, who’s
married to a Colombian and father to a
nine-year-old son growing up in London,
that’s particularly important to me.
The Asset & Wealth Management
business benefited from a unique
momentum. How will you ensure
that that spirit thrives within the
new organization?
It has been humbling for me to join
Deutsche Bank Wealth Management
and realize the incredible energy and
pride that everybody feels in the great
momentum of the business. Maintaining
that buzz will be a key priority. Being
one of the bank’s main investment areas
will obviously help, as will the industry’s
excitement for this field. Equally
important is being clear about what
we’re trying to achieve together. Our
consistent message is that we’re aiming
to protect our clients and the bank; to
transform our operational procedures
to make us nimbler and more relevant;
and to invest in our franchise by hiring
new talent, expanding our network, and
reaching deeper into existing and new
client relationships with new products
and solutions. I have every confidence
that when people see that each action
we pursue is aimed at addressing one
or more of these aspects, they'll be
enthusiastic about what can be achieved.
13
reg ional view W ealt h Manage m en t E MEA
WER T E 0 3 – 2 015 / 1 6
Andre Smits
photographed at
the High Tech Campus
in Eindhoven (www.
hightechcampus.com),
home to 140 companies and institutes, and
some 10,000 researchers, developers, and
entrepreneurs.
Better Together
Andre Smits, Head of Wealth Management BeNeLux
showcases the power of teamwork as he recounts
a recent prime example of the ongoing innovative
cooperation between two Deutsche Bank divisions in
the Netherland’s Eindhoven office.
TEXT Sjoerd Hendriks
— The two top floors of our high-rise office building in the
center of Eindhoven, an up-and-coming city in the south of the
Netherlands, host approximately 80 Deutsche Bank colleagues.
Many work in the Bank’s Global Transaction Banking (GTB)
division, providing medium-sized businesses in the region with
services such as international transfers, credit lines, and foreign
exchange hedging.
— Alongside these colleagues in the Eindhoven office is our
Wealth Management Netherlands team. Since forming in 2012,
we have seen the Netherlands develop into an important
market within the EMEA Wealth Management region. Our goal
is to offer international wealth management solutions to clients
in the Dutch market. The team, comprised of experienced
professionals with proven track records and complementary
skills, has unlocked real potential in Holland in recent years.
— Eindhoven itself is an increasingly sought-after destination
for budding entrepreneurs. Originally nestled at the confluence
of the Dommel and Gender rivers, the city was recently rated
the world’s smartest region by the Intelligent Community
Forum in New Y
ork. Eindhoven has been among the top seven
regions on this list for the past three years. T
he city has
successfully reinvented itself from a hotbed of traditional
indus­try to a digital creative knowledge economy. One of the
drivers of this remarkable transformation has been “open
innovation”.
— Within a 100-mile radius of Eindhoven, numerous familyowned companies are driving innovation in fast-growing
industries often related to the technology sector. Many of these
business owners have built their companies from scratch and
seek trustworthy, long-term planning advice for navigating key
strategic crossroads. How best to transfer the company to the
photo thekla ehling
next generation, how to generate subsequent income from
their company thereafter, and how to create future cash
flows from wealth are just some instances in which our
Wealth Management team offers guidance to Holland-based
entrepreneurs.
— Burnishing its reputation as an innovation hotspot, Eindhoven is home to multiple “unicorns,” disruptive businesses which
are often technology-related with a market value of one billion
US dollars upwards. Such companies are exceedingly attractive
for large global corporations to acquire. The entrepreneur
behind one such unicorn was a client of the Eindhoven office’s
Global Transaction Banking team when a perceptive GTB
colleague foresaw the need for a liquidity event with the
objective of generating considerable long term funds as a result.
He introduced the Wealth Management team to the entrepreneur. Our designated Wealth Management team then leveraged
this already firm client relationship and provided a dedicated
solution involving trust, strong execution, and international
wealth management expertise.
— Eindhoven’s Mayor, Rob van Gijzel, has said that “coopera­tion
and teamwork form the basis of our success.” Similarly,
this investment solution exemplifies Deutsche Bank’s strong
relationship with Eindhoven’s ever-growing community of
successful entrepreneurs. Our close cooperation across
different divisions and office locations within the Bank allows
us to proactively deliver a seamless service to an increasingly
important market and demonstrate the full spectrum of our
capabilities and network.
— We strive to continue to identify new opportunities that
combine expertise to successfully meet the objectives of our
clients.
15
T HIN K GLOBAL N I GERI A
AFRICA’s
NO.
1
Nigeria is
bristling with
energy. Oil,
start-ups, and a
young population are all creating growth,
with all the
­power emanating from Lagos.
TEXT daniela schröder
PHOTOs robin HAMMOND
At St. Saviour’s private school
in Lagos 350 children are taught
the curriculum of the British
education system. Nigeria has a
young population. The average age
is 19.2 years old (Great Britain:
40 years old).
16
Lagos
NIGERIA
17
400
ETHNIC GROUPS
Around 170 million people
from different ethnic
groups live in Nigeria. The
photo shows a wedding
at Yoruba Tennis Club
in Lagos. The Yoruba in
the south of the country
make up 21 percent of the
population.
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60%
ECONOMIC POWER IN LAGOS
An oil manager is measured
for a suit in Lagos.
Lagos accounts for just one
percent of Nigeria’s land surface,
but more than 60 percent of the
country’s GDP is generated in the
city. The region creates more than
half of all jobs.
Idumota is the largest market
in West Africa. Buses shuttle
back and forth between the
market and the residential
districts and clog up the
streets of Lagos, Africa’s capital city of traffic jams, from
dawn till dusk.
20
T
— The governor promotes his city as “Africa’s Big Apple.” In
the case of Lagos the comparison with New York is more than
just promotional hot air. In the case of Lagos it is reality. No
African city is growing as rapidly, in no other is the economy
growing as strongly, and in no other are the ambitions of the
people as big as in Nigeria’s city of several million people on
the Atlantic coast, despite several yet to be solved problems.
Or maybe it is precisely because it has never been easy. After
all, Lagos is demonstrating that problems also mean potential
in Africa.
When Nigeria hits the headlines around the world, the
stories are generally about terrorists, poverty, or corruption.
Yet that is only one part of the reality. The other is a success
story. That’s because the country has grown to become one of
the world’s fastest expanding economies over the last decade.
In Africa itself Nigeria rose to the status of colossus of the
continent in 2014 with a GDP of 515 billion euros.
Nigeria had been experiencing annual growth of seven
percent until recently, the main drivers being the energy exports from the resource-rich country, but the extremely low
oil price has curbed the boom lately, although the International Monetary Fund (IMF) still forecasts growth of around
five percent for Nigeria in 2015. South Africa, previously
the continent’s number one, is still only experiencing annual
growth of around three percent. Lagos is the engine driving
the Nigerian upturn.
Barely two decades ago the city could have been seen as a
symbol of everything that was going wrong in Africa. Today
Lagos is the country’s economic center, the hub of trade and
industry in Nigeria. Even though the metropolitan region on
the coast accounts for just one percent of Nigeria’s land surface, it is responsible for more than 60 percent of all economic
activity. If Lagos were an independent state, it would be one
of the biggest economies in Africa. It is estimated that around
13.2 million people now live in the city. One thing that is
certain is that Lagos is the second biggest city in Africa and
one of the ten fastest growing cities in the world. Any national or international company wishing to do business in Nigeria
or anywhere else in West Africa moves to Lagos.
Food and medicine, cement and plastics, furniture and motors – the manufacturing industry in Lagos is a fundamental part of the Nigerian economy; the metropolitan r­egion
T HIN K GLOBAL LAGOS
THE FACES
OF
SUCCESS
in
LAGOS
Zizi Cardow
is Nigeria’s
leading designer
with her own
fashion label.
Kazeen Lukman
is a partner at a
major law firm
specializing in
business law.
Lagos has a
modern music
scene. The duo
2won is among
the hip-hop
stars.
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T HIN K GLOBAL LAGOS
W E R T E 0 3 – 2 015
18,155
INHABITANTS PER SQUARE KILOMETER
Golf as a symbol of prosperity:
The 18-hole Lakowe Lakes Golf
Club is about 25 kilometers away
from Lagos.
Lagos is among the top four most densely
populated cities in the world. According
to the United Nations, 13.2 million people
live there. Ten years ago the figure was
8.8 million. It could be more than 24 million
by 2020.
Women wash dishes
­between the residential
blocks in a working-class
­district and cook nuts to
sell at the market.
22
creates more than half of all jobs nationwide. A number of
foreign companies have also been operating out of Lagos
for many years. Consumer goods manufacturer Procter &
Gamble has just built its second factory there, Unilever is
increasing local production, SABMiller is brewing beer, and
Nissan is building SUVs. The financial and service sectors
have grown with the economy. The banks are strong and the
Nigerian Stock Exchange is a member of the World Federation of Exchanges.
The fact that Lagos has succeeded in diversifying its economy and tapping new sources of revenue is also down to local
policy. Instead of relying on oil money like the government
in the capital Abuja, the governors in Lagos relied on tax revenue early on and introduced their own taxation system, an
uncommon idea in Africa, which gave Lagos independence
from Nigeria’s corrupt former government and raised billions to upgrade the infrastructure. “Lagos has changed from
a symbol of urban chaos into an example of how to govern
effectively,” say the experts from the Carnegie Endowment
for International Peace, a US-based think tank. This doesn’t
mean that life in Lagos is straightforward. As in all boom cities, the growth exacerbates existing problems. Exploding resident numbers mean an additional strain on the overburdened
infrastructure. Lagos is well-known for gridlocked streets and
endless traffic jams. Another disadvantage is the poor energy
supply. Power cuts are normal; many companies generate
power with diesel generators.
Lagos’ government wants to tackle the problems and has
put together a development plan to turn the metropolitan
region into a “productive, safe, sustainable, functional, and
social” model megacity by 2025. The model project here is
the construction of a new urban district called Eko Atlantic
City. The ambitious plans are a sign of the general attitude in
Lagos. They are concentrating on progress and further development. A positive vision of the future, this attitude is deeply
rooted in Nigerian society. Lagos, traditionally the home of
the merchant, is especially seen as the city of optimists. At the
same time, the city is benefiting from a new class of young,
dynamic entrepreneurs who have been attracted back to their
homeland from Europe and the USA by the economic boom.
Aliko Dangote, the head of the Nigerian economy, is
someone who has always believed in the potential of his
country. He is Africa’s richest man and one of the 100 richest
men in the world – above all else, the 58-year-old is the most
successful African entrepreneur of all time. The small food
trading company founded by Dangote 30 years ago grew to
become Nigeria’s biggest group of companies. The Dangote
Group is a proper empire made up of businesses and factories from a wide range of industries. It employs more than
11,000 people and also operates in neighboring countries
such as Benin, Ghana, and Togo, in addition to the home market of Nigeria. The lion’s share of Dangote’s turnover is generated by cement. The company is Africa’s biggest ­cement
producer and the biggest company listed on the Nigerian
Stock Exchange.
Almaz is
24 years old
and project
manager at an
artists’ foundation in Lagos.
Nollywood
stars Rasheed
Akano and
­Alhaja Dosummu. After India
and the USA,
Nigeria has
the biggest film
industry in the
world.
Kilani Ebenezer
is the creative
head of the
BigBen fashion
label.
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W E R T E 0 3 – 2 015
Muhammadu
Buhari is
Nigeria’s first
president to
be elected at
the ballot box.
And his election passed
peacefully.
Tackling
poverty in
the slums and
thus depriving
terrorists of
fertile soil is
one aim of the
new government.
Dangote is said to be fair, honest, and a very tough competitor. Furthermore, he is considered a master of the AGIP
model, short for “any government in power” – in other words,
not cozying up to the world of politics, but instead leveraging
the political system by linking national interests with one’s
own. It is a strategy that has also worked with Dangote’s
latest project. The entrepreneur had previously avoided his
country’s oil industry. But the fact that Nigeria imports oil
products despite its wealth of oil represents a huge business
opportunity. Dangote wants to invest nine billion US dollars
in a new refinery.
At the same time, the area of foodstuffs is also very
high on his list. Dangote is expanding production in Nigeria to make the country less dependent on imports. In doing
so, he is relying on the economically weak north, which has
bountiful farmland. The plan is to grow sugarcane, rice, and
tomatoes there and process them in factories, leading to the
creation of almost one million jobs. The prospect of work and
income should not only help to halt the continuous flow of
people into the cities – primarily Lagos – but also deprive
extremism of fertile soil.
Nigerians want to get away from the typical negatives.
This has been demonstrated by the national elections in
spring. The victory of the former military general Muhammadu Buhari was a first in the history of Nigeria. For the
first time a change at the top was decided by a vote and the
transfer of office passed peacefully. Africa expert Robert Kappel from the German Institute of Global and Area Studies
24
considers the election to be a key step in the future of democracy. “It was a political act of liberation,” says Kappel. “The
Nigerians want to change their country, they want stability,
and they want to get away from the deeply rooted mechanisms of corruption.”
For foreign investors the new political situation has
­ushered in a level of stability previously unheard of in the
Nigerian market. Buhari is a member of the All Progressive
Congress, the former opposition party that has been in power
in Lagos for years. This presents a positive outlook for the
economy, because the governors in Lagos were previously at
loggerheads with the ruling powers in Abuja as a matter of
principle. Besides the war on terror and corruption, Buhari’s
biggest challenges primarily include upgrading the infrastructure and developing the economy away from oil. The tax
system is due to be turned on its head in line with the model
employed in Lagos in order to fill the state coffers. Nigeria is
already no longer solely a petro-economy, according to the
consulting firm McKinsey. Oil and gas make up just 14 percent of the GNP. World Bank analysts attest that Nigeria’s
economy has a degree of diversification with lasting growth
potential – from 2015 to 2016 the growth rate may rise to
six percent.
The good prospects are due in no small part to the demographic factor. Measured by the number of people, Nigeria
is already the world’s seventh largest state. The population
is very young, the number of inhabitants is steadily rising,
and, despite persistent differences in income, the middle and
upper classes are growing. The United Nations estimates that
the number of people living in Nigeria will double to 350 million people over the next 25 years. By 2040 the country will
even be the fourth most populated country on the planet
­behind India, China, and the USA. According to calculations
by McKinsey, more than 160 million Nigerians will have purchasing power on a current par with Europe by 2030. “Nigeria is one of the top markets in Africa and one of the big global markets of the future,” summarizes Robert Kappel. That’s
because Nigeria itself is not only an unsaturated market. Due
to its geographical location, the country also represents the
perfect location for companies wishing to serve the needs of
the whole of Africa from here in future.
Nigeria is appearing ever more often in the investment
plans of international companies. Consumer goods, telecommunications, infrastructure projects ranging from roads to
sewage systems, or health and financial services – Nigeria
has huge potential, which is the conclusion also drawn by the
Africa experts at Deutsche Bank Research. However, foreign
companies must be especially careful: Nigeria wants to establish its own industries first of all. Those who wish to gain a
foothold with a foreign company will not be able to manage
their businesses from afar. Instead they will have to become
Nigerian, developing local brands and employing local managers. “The country still has many problems,” says Africa expert Robert Kappel. “But the economic potential of Nigeria
lies in overcoming these problems.”
Photos: Robin Hammond/National Geographic Creative (13); Asahi Shimbun via Getty Images
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Blazing Trails for
a Better World
Klaus Schwab’s
World Economic
Forum Sets the
Global Agenda
TEXT Christiane Oppermann & joellen perry
KLAUS SCHWAB is founder
of the W
orld Economic Forum
in Davos, which has been
anticipating the issues and
trends of the future for the
past 45 years.
Photo: Mathias Marx / imagetrust
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K
— Klaus Schwab has made a habit of
blazing trails. The founder and chairman of the World Economic Forum, the
legendary annual gathering of the
world’s political, business, and cultural
elite in Davos, Switzerland, regularly
hikes the Alps’ most challenging courses and says that, at 77, he needs just one
hour to climb 550 meters. The WEF itself was founded to break new ground:
In 1971, newly appointed as the University of Geneva’s youngest professor,
Schwab gathered 444 European business leaders in Davos for a conference
aimed at helping European firms catch
up with US management practices. Just
32 at the time, Schwab used his contacts
at the European Commission and from
a year at Harvard to launch a “European Management Forum” meant to pioneer the then novel idea that companies
be accountable to all stakeholders – employees, customers, and governments –
rather than just shareholders. Little did
he know how ready the world was for
such an approach: “What was planned
as a single event turned out to be the
answer to a fundamental need: to create
a permanent bridge between political
and business decision-making,” Klaus
Schwab said.
Renamed the World Economic Forum
in 1987, the gathering has been building bridges ever since. The annual
28
Professor Schwab,
does today’s capitalist
system still have any
future at all?
meeting draws on Prof. Schwab’s diligently curated network – the professor
rarely forgets a birthday – to bring a
who’s who of the world’s powerful
leaders to the Alpine village each year.
Klaus Schwab’s collaborative approach
has set the stage for major political
milestones including meetings between
South African President, F. W. de Klerk,
and Nelson Mandela in 1992, and between Israeli Foreign Minister, Shimon
Peres, and Palestinian Liberation Organization Chairman, Yasser Arafat, in
1994. The original management focus
has also long since given way to a
broader vision of improving the world
by bringing leaders together to tackle
the biggest questions of the day. Recent
agenda items include climate change
and eliminating poverty; the refugee
crisis and the rapid pace of technological change will be in the focus this year.
As Klaus Schwab approaches his 80th
birthday, questions have begun to swirl
about whether the time has come for
him to hand over to someone else the
reins of the world’s most influential
networking event. But Klaus Schwab
himself – who swims for an hour each
morning and uses a mobile phone and
tablet rather than a computer because
he’s always “on the move” – seems
poised to continue blazing trails for the
foreseeable future.
We are currently in a period of profound upheaval. The chronic
critical situation of national finances, particularly in the USA
and Europe, and massive income differences are some of the
risks that will heavily burden us in the coming years. There
can be no simple “Carry on as you are!” approach. An economic system that can cope with the new global reality must
be better equipped to deal with future shocks and risks. If we
are to manage the rapid upheaval better, we need new models
that focus more strongly on fair market conditions without
neglecting social obligations. We need managers to adopt a
new management style in order to deal with the change.
Prof. Dr. Klaus Schwab
The son of a Swiss factory
manager was born in Ravensburg,
Germany, in 1938. He studied
mechanical engineering at the
ETH Zurich and business sciences in Fribourg. In 1971 he
founded the European Management Conference, which became
the World Economic Forum
(WEF) in 1987. Schwab is
married and father of two
children. His daughter Nicole
oversaw a WEF project from
2005 to 2009. Son Olivier is head
of the WEF in China and lives
with his wife and two children
in Peking.
How must finance and business throughout the world specifically change in order to be fit for the future?
The financial and debt crisis has shown that we must be better
prepared in future, because it is clear that such risks remain
and external shocks can still occur at any time. Natural disasters, political instability, and economic downturns cannot be
avoided, but the negative consequences can be contained and
anticipated with the right preparations. It’s about getting back
to growth without being imprudent.
You also say that creativity and innovative power will be key
competitive factors in future. Can you explain what you mean
by that?
Only organizations that create a climate of innovation will
be successful in future. Money is no longer the critical hurdle. You only have to look at the current rate of the Federal
Reserve or the Bank of Japan. Both institutions make huge
amounts of liquidity available every month. All over the
world, investors with large reserves are looking for rewarding investment opportunities. Highly qualified employees are
a much more valuable resource, because they are becoming
ever scarcer. The skills shortage, which has been discussed in
Germany and elsewhere for some time, is a global phenomenon. In future, capitalism will increasingly be replaced by a
new form of “talentism.”
How do you constantly manage to anticipate the issues of the
future with the World Economic Forum?
We are in the privileged position of being able to devote
ourselves to long-term issues. What social patterns emerge?
How are the trends reflected globally? How can companies
and governments keep up with the changes? We benefit from
the fact that we are in permanent dialog with experts from
Photo: dpa Picture-Alliance / Laurent Gillieron
business, politics, and civil society on a global level. For me
personally, the fresh ideas from our young communities are a
real asset. In the Global Shapers (an initiative created by Professor Schwab in 2011, targeted at potential leaders between
the ages of 20 and 30) we have created a network of under-30s,
who, after all, make up almost half of the world’s population.
In your view, what are the issues and trends of the future?
The financial and debt crisis has focused the powers and attention of decision-makers. The forum is ideally positioned
to make sure that the long-term issues are not ignored. Our
Global Risk Report plays its part here.
Progress has been made in the area of health, but this appears
to have led to a dangerous sense of self-satisfaction. The increasing resistance to antibiotics could plunge the overburdened health system into the abyss, while pandemics could
spread at lightning speed as a result of a close interconnectedness throughout the world. Pressing socioeconomic risks have
led to a drop in efforts to get a handle on climate change. A
skewed perception is the main reason why the international
community is balking at dealing with this long-term danger.
The democratization of access to data and information is essentially a positive development, but it can also have destabilizing and unforeseeable consequences. While the traditional
guardian role of the media is being eroded, networking can
lead to the spread of a “digital conflagration.” Being able to
put out these fires will become a challenge for virtually every
organization in the world.
Was the European Management Forum, as it was still known
in 1971, conceived by you as a kind of development aid for
Europe?
In the broadest sense, yes. The original idea was to help European businesses to reach the level of American management
practices.
What represents the spirit of Davos?
The forum has grown steadily in the 45 years since it was
founded. The catalysts in the early years were the collapse of
the Bretton Woods fixed exchange rate mechanism and the
1973 Arab–Israeli War. After that, I began to widen the focus to include political and social issues and specifically invite
political decision makers. The spirit of Davos emerges from a
unique mix of factors. One of these is the informal dialog, detached from day-to-day corporate and political business. Then
there is the mix of decision makers: entrepreneurs, people in
power, and all the major non-governmental organizations.
Also important is the fact that we enjoy the privilege of seeing things from a truly global perspective: What is necessary
for the world? And not: What is necessary for America or
Germany?
Which Davos moments will you never forget?
There are so many! For me as a German, the meeting between
Helmut Kohl and Hans Modrow (the former chancellor of
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1
West-Germany and the last communist premier of East-Germany) was one such moment. Another was the handshake
between Mandela and de Klerk in 1992. And the peace agreement between Greece and Turkey was signed at a time when
the armies were already partially mobilized.
How has the forum changed over the years?
It is now the world’s main multi-stakeholder platform. No
other organization has managed to create the dynamism of a
private sector organization, the scientific expertise of an ideas
factory, and a comparable level of media transparency. As a
neutral platform, we are a trustworthy partner for a number
of players in an age when other institutions are politically
shackled.
And what will secure the long-term success of Davos in the
future?
The need for guidance in our globalized and networked world
is bigger than ever before, as is the imperative to cooperate.
And this hasn’t just been the case since the financial and economic crises of recent years. Many organizations that ought
to be providing guidance and were intended to be a platform
for cooperation are currently not in a position to perform
such tasks.
You once said that it is important for Davos to change the
course of the world. What has Davos changed?
The idea for the G20 was born in Davos, supported by the
Germans at the time, and the UN Global Compact, initiated
by Kofi Annan and myself. There is also the Global Alliance
for Vaccines and Immunization, which has now saved the
lives of millions of children. The idea of the Global Fund to
fight Aids, tuberculosis, and malaria also came about in Davos. I am proud of the influence we have on the thinking of
the time. We were the first to draw attention to the issue of
the environment in the 1970s. In addition, I have also invited
people whose ideas have not conformed to the system, which
has not always been to everybody’s delight.
Why is it important to sit around the same table with critics?
The World Economic Forum makes no political decisions, does
not invest in grand style, and is generally unable to implement
measures in the necessary areas. Our role as an institution
is to gain the trust of all the relevant stakeholders. This also
involves keeping a constant eye on emerging social groups
and trends. We can only live up to our credentials of being a
multi-stakeholder forum if we offer critics a seat at the table.
Against this background, what advice can you give to bank
managers who are currently suffering from a credibility and
image crisis?
The forum’s old maxim – that companies can only be successful in the long term if they focus not only on their shareholders, but on all relevant groups – still applies. We need to
get back to a management style that is based more strongly
30
(1) The world’s
most powerful
people seek
out Klaus
Schwab, here
with China’s
premier Li
Keqiang.
2
(2) Klaus
Schwab with
United States
Secretary of
State John
Kerry.
3
(3) Schwab on a WEF
panel with German
Chancellor Angela
Merkel.
(4) Schwab with his wife
and former assistant,
Hilde. The couple’s
foundation, led since
1998 by Hilde Schwab,
supports social
entrepreneurs.
4
The World Economic Forum
The annual forum in Davos is seen as a think tank for the
world in financial and economic matters. New intellectual
approaches are born here. More than 2,500 leading personalities from the world of politics, business, and science – including over 40 heads of state and government – regularly attend
the World Economic Forum. This year the focus was on
mastering the fourth industrial revolution, helping leaders
from all walks of life prepare for a future driven by rapid
www.weforum.org
technological change.
on the image of the “honorable merchant.” It goes without
saying that demands have grown enormously in this respect.
Companies which operate on the international stage in particular must feel a sense of obligation towards all the societies
in which they are active. That is no easy task, but it is nonetheless important that there is a conspicuous effort to live up
to these expectations.
You have criticized the excessive salaries of managers. In your
opinion, how can top salaries be fairly assessed?
My criticism was not so much directed at high salaries per se.
I only ever draw attention to the context of such remuneration. The perception of an ever-widening gap between rich
and poor has brought about sensibilities that must be taken
into consideration here. If a company’s top salaries are 100
times those of normal employees, it is no longer possible to
explain where the added value comes from. There is no doubt
that the battle for the best minds in a globalized world requires investment, but at the end of the day such competition should not harm morale in the workplace and ultimately
social cohesion.
What about bonuses? Are they fair?
I consider success-based remuneration to be a thoroughly
sensible element. Against the background of the aforementioned “talentism,” companies have to create special incentives to attract and retain top managers in the world of international business. But it is also important here that such
instruments are used in a wider social context. Redundancies
and bonuses in the same breath are understandably met with
incomprehension. A workable balance has to be maintained.
You were born in Upper Swabia, have a German passport, live
in Switzerland, and describe yourself as a European …
I grew up under the impact of the immediate post-war period. Reconciliation and settlement between Germany and its
neighbors is a matter that has interested me since my youth.
I was especially committed to Franco-German partnership.
I think that what we have accomplished in Europe is a major achievement and that is why I always like to remember
that the European Union was also a political project, when all
the current talk is primarily about bailout packages and debt
crises. The way in which conflicts are resolved peacefully by
consensus may often be something we take for granted nowadays, but it is of immeasurable value. Europe can serve as
an inspiration for many regions of the world in this respect.
And how do you assess the state of Europe?
I am optimistic. I recently published a book that can be seen
as a synthesis of a number of discussions on Europe. The title,
“The Re-emergence of Europe,” expresses this optimism very
well. Of course, there is still a great deal to do, such as a possible banking and financial union. Europe will not be finished
in a day. Europe is a process, but the immediate danger of a
breakup has been averted.
“The World Economic
Forum is a bit of
everything: think tank,
public private partnership, manager forum,
and NGO”
What errors have been made in Europe?
Competitiveness has developed at very different rates in Europe. Germany, for instance, introduced painful reforms a few
years back, significantly increased productivity, and internationalized its economy. The necessary homework has not been
done in a timely or decisive manner everywhere. There have
been and still are shortcomings in relation to explaining the
need for reform and the reforms themselves to citizens.
What still has to be done to ensure that Europe and the euro
have a future?
It is now up to the political leaders to present a bold vision
to their citizens. It must be a vision that primarily appeals to
young people and commits them to continuing the European
project and is based on inclusive institutions and decisionmaking processes. Europe’s politicians must offer more solid
reasons for continuing the European Union than merely referring to the cost of failure. Then Europe will be able to inspire people again as an idea and a political project.
Joschka Fischer called for a United States of Europe in this
magazine. W
hat are your views on this?
I also believe that we will see greater coordination and states
coming closer together in some areas. I also hope that we will
ultimately create a European confederation. It is the only way
in which Europe can maintain its global political and economic significance. Unlike Mr. Fischer, however, I do not believe
in a linear process. In my view, two things must be considered: Firstly, some things certainly have to be fundamentally
changed to break up established structures and cope with new
situations. Secondly, we must ensure that the speed of such a
process does not overwhelm people.
Finally, allow us to ask you a personal question: Part of preparing for the future includes planning your own successor …
As a charitable foundation, the forum is not a family-run
business. The succession planning will therefore be managed
by the independent board of trustees. As founder, I perform
the role of chairman, but also preside over the board of trustees. I can see these roles being split up in future. Having said
that, as long as my board of trustees considers me to be mentally and physically fit, I am not thinking of retiring.
Photos: xinhua / fotofinder.com; ullstein bild - Reuters / Ruben Sprich; action press; Inter toopics / Photoshot
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T H I N K G L OB A L googl e eart h
6°29'44"N 3°23'39"E
Lagos, Nigeria
Around 90,000 people live
in colorful stilt houses and
houseboats in the district
of Makoko.
40°47'13"N 119°12'16"W
Black Rock Desert, USA
Every year more than 70,000
people flock to the eight-day
“Burning Man” art and music
festival in Nevada’s saliferous
desert.
daily overview
A bird’s-eye view of the world has always fascinated people. T
hanks to
Google Earth everyone can now marvel at our planet from space, discover elaborate
structures, and see captivating images. Google satellites beam masses of images to Earth
every day. The artist Benjamin Grant publishes the best of these in an online gallery.
“It gives people the opportunity to see the world in its entirety and appreciate both its
beauty and its fragility. The images remind us that we have to look after our planet.”
www.dailyoverview.com
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T H I N K G L OB A L googl e eart h
40°47'N 73°58'W
New York City, USA
Central Park is
­Manhattan’s green lungs,
860 meters wide and
4.1 kilometers long.
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1
32.716°N 115.036°W
Gordons Well, California, USA
The 196-hectare Brock Reservoir
stores 9.9 million cubic meters
of drinking water.
2
-7.182276027°, 112.718361577°
Surabaya, Indonesia
Cargo ships wait off the coast for
a space in T
anjung Parak Port.
3
1
2
26.475547616°, -80.156470216°
Delray Beach, Florida, USA
Almost every house here has access
to the lifeline that is the water.
5
4
38°14'N 117°22'W
Tonopah, Nevada, USA
17,500 heliostats collect the
sun’s rays in the Crescent Dunes
solar energy field.
5
46.422810882°, 16.467788714°
Novo Selo Rok, Croatia
The region of Medimurje is
­Croatia’s breadbasket.
6
25°20'42"S 131°02'10"E
Uluru, Australia
The sedimentary pattern of
Ayers Rock can only be appreciated
from a bird’s-eye perspective.
3
36
4
6
Photos: Daily Over view | Satellite images (c) 2015, Digital Globe, Inc
37
THINK G L OB A L EN T REP REN EU R P ORT RAI T
W E R T E 0 3 – 2 015 / 1 6
The
Grandson’s
Big
Moment
John ­E lkann has
turned the Italian
family-run business
Fiat into a global
player – with real
estate and financial
interests, insurance,
and publishing
houses.
Text petra reski
John ­Elkann’s empire
(a selection of international interests owned by the Agnelli family)
EXOR (investment company founded by Giovanni Agnelli in 1927)
PARTNER RE
JUVENTUS F.C.
Reinsurance comExor Holding
pany listed on the
has a 63.77 perNew York Stock Excent stake in
change, purchased
the soccer club.
in 2015 for 6.3 billion US dollars.
38
“THE
ECONOMIST”
In August
2015 Exor
purchased a
43.4 percent stake
in the financial
magazine.
FCA
Fiat, Chrysler, Ferrari, Maserati, and
Jeep are among
some of the companies belonging
to Fiat Chrysler
Automobiles.
Cushman &
Wakefield
The world’s biggest private real
estate service
provider, based in
New York.
A brisk start
to trading of
Ferrari shares:
Italian John E­ lkann
on Wall Street in
October 2015.
Photo: Jewel Samad/AFP/Getty Images
39
S
THINK G L OB A L EN T REP REN EU R P ORT RAI T
W E R T E 0 3 – 2 015 / 1 6
— Slim, tall, and curly-haired – John
­ lkann still looks like a philosophy stuE
dent who has somehow strayed into management. At first glance the apparently
shy 39-year-old appears a rather atypical
Agnelli grandson: He has no known pretensions, he rarely gives interviews – and
yet has done nothing less than usher in
a new era for the Agnelli empire. There
is less focus on cars and technology and
a move toward a broadly based company
with various sources of income; less family, more internationality. He was recently
seen standing in front of a red Ferrari in
an electric blue suit and red waistcoat announcing the initial public offering of the
brand on Wall Street. The shares in Ferrari
sold like proverbial hot cakes, as reported
in “La Stampa”, the family’s own news­
paper.
Perhaps it was precisely John ­Elkann’s
supposed shyness that led his grandfather
Gianni Agnelli to appoint him as his successor – after all, being underestimated is
a competitive advantage. In addition, those
who have the power do not need to raise
their voice – and who knows this better
than John ­Elkann, who grew up in the dynasty that has been shrouded in a myth
of power, money, death, grief, and love for
generations.
Gianni Agnelli’s only son Edoardo fell
to his death from a highway bridge in 2000.
In 2003 Gianni Agnelli, the patriarch, died
at the age of 81. His younger brother Umberto followed him just one year later. John
Elkann has been in charge ever since – discretely, tenaciously, and diplomatically. He
was born in New York and grew up with
his brother in England, France, and Brazil.
40
(1) The Agnelli
family outside
their villa south
of Turin. Patriarch
Gianni with wife
Marella, daughter
Margherita, and
grandchildren
Sofia, Maria, Lapo,
John, and Pierre
(from left).
1
(2)3 Gianni Agnelli the playboy, pictured in
Ravello in 1962 with Jacqueline Kennedy
and Prince Stanisław Albrecht Radziwiłł
from Poland.
2
(2) Agnelli, the
playboy and
passionate sailor,
off the Amalfi
coast in 1962.
4
5
(5) Red for Wall Street: John E­ lkann
and Sergio Marchionne show their
delight at the successful IPO of
Ferrari in October 2015.
6
(6) John E­ lkann and
Lavinia Borromeo have
been married since
2004 and have three
children. Lavinia’s sister
Beatrice married the
son of Princess
Caroline of Monaco
in summer 2015.
(3) Agnelli with Pope John Paul II. The
“Avvocato” maintained good relations
with church leaders and heads of state
throughout his life.
(4) Talking shop about classic cars: E­ lkann
and Prince Charles at the Fiat Museum.
From his grandfather he not only in­Franco-Italian intellectual and author.
herited the throaty way of pronouncing
His mother Margherita Agnelli is Githe letter R, but also a determination
anni Agnelli’s only daughter – a painttypical of people from the Piedmont
er, ex-hippie, and a Greek Orthodox
region, an almost Prussian-like disciconvert since her second marriage.
pline. When he studied engineering in
John ­Elkann lives with his wife and
Turin at the behest of his grandfather,
three children in seclusion in the forhe lived in a dormitory run by Jesuits
mer villa of his grandfather in Superand spent his evenings reading Honga – that is also a statement. Just like
oré de Balzac and Émile Zola rather
his grandfather and great-grandfather
than ex­periencing the nightlife, as the
before him, John ­
Elkann married a
“Republicca” newspaper reported in
noblewoman: Lavinia Borromeo Arese
astonishment at the time. During vaTaverna. The marriage was celebrated
cations John ­Elkann worked at a Polish
in 2004 on the family’s own BorroFiat dealership, incognito of course. Afmean Islands. As he approached the
ter graduating he gained professional
altar with his elegant demeanor and
experience in the USA, Japan, Ireland,
cutaway, the Italian society magazines
Spain, and France.
went into raptures and eulogized the
John ­
Elkann has been familiar
39-year-old grandson of Agnelli as the
with the global financial aristocracy
“Sun King”. When ­Elkann last turned
since he was a child. He had not even
up here in summer 2015 to attend the
turned 21 when his grandfather Gimarriage of his sister-in-law Beatrice
anni ­Agnelli, the last icon of the former
Borromeo to the Grimaldi offspring
economic wonderland that was Italy,
­
Pierre Casiraghi, it was the society
appointed him as successor. In 1997,
event that the whole of Italy was
pragmatically and perhaps somewhat
drooling over. However, John ­Elkann
impiously, Gianni Agnelli presented
remained discretely in the background
GIANNI AGNELLI
his grandson as the successor of his
and was only seen taking photos of his
successor: His nephew Giovanni Alchildren in a dark blue suit. His brothberto had been buried three days previously, having died of er Lapo, on the other hand, drove to the jet-set wedding on
cancer at the age of 33. When small shareholders criticized Lake Maggiore in an apricot-colored Fiat 500.
the a­ ppointment of his grandson, Gianni Agnelli gave them a
And nobody gave another thought to the fact that it was
dressing-down: “He has been assigned to the post by me, just John who made sure that his extrovert brother had been relike my grandfather ordered my appointment at the same habilitated: Lapo was the head of the marketing division at
age.”
Fiat until he was found unconscious following an overdose
However, what Gianni Agnelli failed to disclose was that in 2005. Remorse, contrition, and a short break followed. The
he had by no means been drafted directly into the compa- eccentric subsequently devoted his time to creating his own
ny after the death of his grandfather, but took 21 years off: collection of sunglasses and was welcomed again with open
Fiat was run by manager Vittorio Valetta while Agnelli lived arms. John ­Elkann also magnanimously harbored no grudge
in the south of France and worked on his legend as a play- against his cousin Andrea Agnelli, who he had appointed
boy – he had countless liaisons (with Rita Hayworth, Anita president of the family-owned soccer club Juventus, follow­Eckberg, and Jacqueline Kennedy, among others) and broke ing his escapades: according to the Italian tabloids, E
­ lkann
his leg in seven places following a car accident. Agnelli didn’t forgave him for an affair with the wife of the Juventus marjoin Fiat until the age of 45.
keting director, who quit as a result and received a compen­ lkann’s line of ancestors reads like a 19th cen- sation package running into millions from the Agnelli holdJohn E
tury social novel: His grandmother Marella Caracciolo di ing company.
­Castagneto was a Neapolitan princess, a former Vogue modIt also became clear just how seriously John ­Elkann takes
el, who was immortalized as an icon by the author Truman his responsibility for the Agnelli clan during an inheritance
Capote. His great-aunt Suni was Italian foreign minister, his dispute with his mother: When his grandmother gave him
paternal grandfather was the French banker and rabbi Jean- her shares to strengthen his position, his mother, Margherita
Paul ­Elkann. His paternal grandmother was a member of Agnelli, legally contested the inheritance settlement she had
Turin’s Jewish moneyed aristocracy and not only survived previously accepted, because she felt she had been snubbed.
the Holocaust, but also a three-month kidnap ordeal at the Mother and son have not spoken to one another since; she
hands of the Calabrian Mafia. His father Alain ­Elkann is a was also absent from his wedding.
“You must
have faith
in yourself.
You must have
faith in
your country.
And everything
you do must
be done to
the best of
your ­ability.
You must
­always strive for
­excellence.”
Photos: best image; ddp images/olycom; API/GAMMA/laif; Inter topics/Photoshot; picture alliance/associated PR; Inter topics/Empics/ToscanaMB
41
THI N K G L OB A L W ealt h Solu t i on S
W E R T E 0 3 – 2 015 / 1 6
It is no coincidence that the “New
York Times” considers John Elkann to
be a more understated and efficient version of his famous grandfather – also
because it was John’s strategic moves
that transformed the Agnelli holding
company into a global player. In fall
2015 Elkann went public with Ferrari;
in the summer he had purchased the
reinsurance company PartnerRe, based
in Bermuda, for 6.9 billion euros, not
just to put an end to the dependence on
gross national product fluctuations, to
which the automotive industry is subject, but also because PartnerRe is seen
as a calling card for the club of global
players, bringing a union with the US
automobile manufacturer General Motors one step closer.
­ lkann inShortly after this coup E
vested 405 million euros in a majority
stake in “The Economist” in London,
the world’s most renowned financial
magazine: 43.4 percent of the publication is read by anyone who has something to say, propelling him to the top
of the exclusive circle of owners, of
which European dynasties such as the
Rothschilds, Cadburys, and Schroders
are members. John E
­ lkann not only got
the nod because he himself is a member
of the financial aristocracy, but also because the trustees of “The Economist”
lauded his proven “constructive role”
on the magazine’s board. The trustees,
who protect the editorial independence
of “The Economist” with their right
of veto, are confident that ­Elkann intends to invest over the long term and
believes in the title’s growth potential,
particularly in Asia, with its new and
aspiring elites.
The Agnellis have always owned
newspapers – and not just “La Stampa.” The family clan also has significant shares in the “Corriere della
Sera” daily newspapers and the RCS
­MediaGroup publishing house. But it
is only “The Economist” that plays in
the global league which the Agnelli empire has joined thanks to John ­Elkann.
The American major investor Warren
Buffet is said to be John ­Elkann’s role
Elkann has frequently
model, since ­
42
The Italian Kennedys
Gianni Agnelli
(* 1921 † 2003)
Marella Caracciolo di
Castagneto (* 1927)
Edoardo Agnelli
(* 1954 † 2000)
Alain ­Elkann
(* 1950)
Margherita Agnelli
(* 1955)
1970
The Agnelli
heiress
marries the
publicist
Alain ­Elkann.
Lapo ­Elkann
(* 1977)
John E­ lkann
(* 1976)
2015
John E­ lkann
plays with his
children Leone,
Vita, and
Oceano on the
peripheries of
a wedding.
Lavina Borromeo
(* 1977)
been spotted at the general meetings of
­Buffet’s investment company Berkshire
Hathaway. Buffet became the world’s
third-richest man with long-term investments in various sectors, although
he still lives in the modest house where
it all began in Omaha.
Thanks to John E
­ lkann the credo of
the Agnelli family holding company
Exor is as follows: fewer cars, less industry, and less Italy. Instead there is more
finance, more services, and more London and New York. The company is no
longer based in Turin, but Amsterdam,
and tax is paid in the UK. After all, the
times when Fiat was Italy are history.
Gianni Agnelli was able to do business
with Nikita Khrushchev and Muammar Gaddafi, do deals with the conservative parties, and give the communist
unions wage indexation. Gifts paid for
not by Agnelli, but by the Italian state.
The Agnellis always somehow managed
to be on the right side, as they say to
this day in Italy. Elkann predicted social
changes earlier than many others and
ushered in strategic development and
international diversification to secure
the future of the company. As a consequence of his actions, Fiat is now just a
small part of the Agnelli family holding company Exor, but at least it is solid:
FCA – Fiat Chrysler Automobiles – has
been successfully restructured by the
Italo-Canadian Sergio Marchionne under the aegis of ­Elkann.
John E
­ lkann – affectionately called
“Jaki” by his family –proved he isn’t
squeamish when he parted company
with Agnelli protégé and Ferrari chief
Luca di Montezemolo in 2014. The Italian newspapers spoke of “patricide” –
and suppressed the fact that ten years
earlier they had derisively reported on
how John Elkann sat wedged between
Marchionne and Montezemolo without
uttering a word.
Nowadays nobody dares to underestimate him. John ­Elkann is the man
whom all 250 members of the Agnelli
clan listen to, in keeping with the motto
of his grandfather: “In the House of Savoy, just like in the House of Agnelli,
there is only one ruler.”
Photos: Interfoto/Alinari/Gianfranco Moroldo/RCS, picture alliance/dpa, ddpimages/olycom (2), Imago/Leemage, Bulls/Ciao Pix
— Whilst many clients today are pleased
to leave the entirety of their investment
decisions to in-house investment experts, on the other hand, are many investors who wish to retain sole control of
their portfolio decisions, using the bank
largely as an investment platform to execute trades. Increasingly, though, wealth
management clients want both access to
Deutsche Bank in-house investment
expertise and the freedom to manage
their own investments within the risk
tolerance and investment goal parameters which Deutsche Bank Wealth
Management scrupulously defines together with the client.
— In response to this, Marco Busetto is
proud to lead the Wealth Advisory Mandate (WAM) team to serve as “the latest
value proposition for clients that benefit
from a partnership model in which the
most professional advice possible is provided while the client retains full control
of their investments.” WAM is available
to thousands of clients globally and the
investment approach has seen significant
growth in popularity amongst both existing and new clients.
— WAM is the bespoke advisory service
that is tailored exactly according to each
client’s individual investment profile. It
comprises a unique combination of expertise, robust investment process and
risk management where autonomy prevails as the calling card of the service
mandate.
— Many factors underlie the increasing
popularity of the WAM service. Low interest rates globally mean clients who in
the past were accustomed to a regular
flow of funds from fixed income investments have had to take on more risk to
generate the same return. Secondly, market volatility has increased in recent
years amid rising geopolitical risks. Thirdly, different stages of monetary policies
globally are generating increasing uncertainties. Technological advances also
mean that clients have access to vast
amounts of market information and can
be in touch with their advisors at any
time, increasing both their desire and
ability to be involved in investment decisions.
— In early 2015, one client came with a
challenging request. By investing solely in
fixed income assets with a conservative
Photo: Andreas Schwaiger
Wealth Advisory
Mandate (WAM)
Your
Power to
Decide
MARCO BUSeTTO
Head of Wealth Advisory Mandate,
Deutsche Bank Wealth Management
approach, the client wished to draw a
predefined cash flow from a USD 160
million portfolio and hit a high yield longterm target.
— The WAM team coordinated a dedicated service solution, together with a
number of experts from investment advisors to fixed income and structured
products specialists to satisfy the client’s
desideratum.
— They designed a bespoke portfolio of
carefully selected single line fixed income
investments and tailor-made structured
products that were leveraged by USD 60
million and built to represent high yield
returns, whilst maintaining controlled
risk and volatility. With fixed income and
structured product specialists constantly
monitoring the portfolio and sharing our
in-house view on market developments,
the client receives constant advice, is always kept aware of his performance, can
adjust his allocation at any time, and has
the freedom to trade whenever he wants
thanks to the flat fee approach.
— “The client has full access to our expertise but directs his own investment
decisions,” Marco Busetto adds. Convinced by the customized service mandate solution according to the client’s
portfolio management ambitions, the client recently decided to add an additional
USD 110 million into his WAM portfolio.
— Clients of WAM have regular, direct
access to our CIO View as well as our
“Recommendation Lists” guiding them
through carefully constructed multi-asset, mono-line and thematic strategies
that reflect the house view and exploit
secular trends. Notably, the WAM service offers specific “inspirational portfolios” from which clients can draw ideas.
According to the client’s individual risk
profile, investment advisors and product
specialists propose trade ideas regularly
– in which key to the offering – clients
retain the autonomy to decide for themselves.
— Foremost among the benefits of the
WAM service is the unique access to the
entirety of the Deutsche Bank in-house
thought leadership. Dedicated investment advisors, consultation with product
specialists and a wide range of open architecture solutions allow portfolio recommendations to be uniquely tailored to
clients’ individual risk profiles and investment goals.
— Marco Busetto characterizes the
WAM service as “a true partnership with
our clients.” Solutions are made to measure for clients who want to leverage
direct access with our investment expertise and at the same time keep full control of their investments. The philosophy
is to provide a superior value to our clients along the entire value chain. He concludes that “the Wealth Advisory Mandate service offers each client the keys
to the Deutsche Bank house.”
No assurance can be given that investment
objectives will be achieved. Forecasts are
based on assumptions, estimates, opinions
and hypothetical models or analysis which
may prove to be incorrect.
43
W E R T E 0 3 – 2 015 / 1 6
TEXT leonard prinz
THE UNICORN
Club
SoFi specializes­
in ­refinancing
Mike Cagney
student loans and
Founded: 2011
­providing mortgages.
Place: San Francisco In financing rounds
SoFi has raised
1.5 ­billion dollars.
daniel ek
Founded: 2006
Place: Stockholm
More than 60 million
people worldwide
stream music using
Spotify. The start-up
is worth an estimated
8.5 billion dollars.
Founded: 2008
Place: London
Founded: 2008
Place: San Francisco
The value of the online
marketplace for vacation accommodation
(1.5 ­million properties
in 190 countries) is
­estimated to be more
than 25.5 billion dollars.
Investors have a stake
worth 2.3 billion dollars.
It is the world’s most exclusive club.
Its members are known as u­ nicorns.
They are start-ups that are worth one billion dollars or more and are courted by
international venture c­ apitalists.*
José Neves
Brian Chesky
Software is needed for
online shops. Even before
the initial public offering
in May 2015, venture
capitalists had invested
122 million dollars in
the German–Canadian
software store.
tobias lutke
Founded: 2006
Place: Ottawa
The Israelis develop
technology for self-driving Ziv Aviram
cars. With 473 employees,
Founded: 1999
the company generates a
Place: Jerusalem
turnover of 143.6 million
dollars. The initial public
offering in 2014 raised 890
million dollars.
More than 300 independent labels from all
over the world offer their fashions via this
Internet platform. Half a million customers are
registered, generating 300 million dollars of
turnover a year for founder José Neves.
Venture capitalists believe in the success of the
business and have invested 195 million dollars.
Peter van
der Does
Founded: 2006
Place: Amsterdam
3,500 customers worldwide
use the Dutch online payment
system, including Netflix, Facebook, and Vodafone. Adyen has
300 employees and is valued at
2.3 billion dollars.
Chris Muhr,
Christian Bertermann, Hakan Koç
Founded: 2012
Place: Berlin
The Berlin businessmen
valuate and buy secondhand cars in 20 countries
and sell them on to car
dealers at a higher price.
Turnover: 850 million
dollars. According to the
Auto 1 Group, venture
capitalists have invested
200 million dollars.
44
Cheng Wei
Founded: 2012
Place: Peking
Binny and
Sachin Bansal
Founded: 2007
Place: Bangalore
Amazon is their role model. Flipkart also sold
only books in the beginning, but now sells everything the Indian market desires. With 22 million
registered customers, an estimated value of 15
billion dollars, and three billion dollars of venture
capital in its coffers, it is clearly successful.
* Sources: Dow Jones and The Wall Street Journal
elizabeth holmes
Founded: 2003
Place: Palo Alto
Elizabeth Holmes has
earned a fortune with blood
tests for everyone. The
company is estimated to be
worth nine billion dollars.
Sang Hyuk Lee
Founded: 2010
Place: Seoul
Yello is made up of
70 mobile commerce businesses. It is
estimated to be worth
one billion dollars.
Photos: INTERFOTO / Sammlung Rauch; Auto1Group; Adyen; Brendan McDermid/Reuters/Corbis; Jason Lee/Reuters/Corbis; PR (18)
Didi Kuaidi is China’s
answer to Uber. In six
financing rounds the taxibooking service raised
four billion dollars. The
value of the company is
estimated to be 16 billion
dollars.
45
TH I N K G L OB A L Mark et Ou t loo k
W E R T E 0 3 – 2 015 / 1 6
1.
2.
Equity
Market ­
Outlook
The Implications
of a Stronger
US Dollar
Henning Gebhardt,
Global Head of Equities,
on the prospects for
the stock market in 2016.
Joe Benevento and Joern
Wasmund, Global Co-Heads
of Fixed Income/Cash, on the
prospects for the bond market.
— Global equity markets closed with a deficit last year due to
weak performance during the final two months (the MSCI AC
World was down 4.3 percent in dollar terms). Even the DAX,
Germany’s leading index, which was up almost ten percent, was
not quite able to reach the level we forecast 12 months ago.
— Central-bank policies will continue to play a major role in
the fixed-income markets, not least through their effect on
exchange rates. The Federal Open Market Committee
(FOMC) followed market expectations and raised rates in
December. Further interest rate moves will be significantly dependent on further economic growth. Normally, a “low-andslow” approach would not be expected to boost the U.S. dollar substantially. But whilst Ms. Yellen may not be pulling very
hard at her end of the tug-of-war rope, ECB President Mario
Draghi has been deliberately loosening his grip at the other,
implementing further monetary-policy easing (most recently,
trimming the ECB’s deposit rate and prolonging its asset
purchase program). The result could be a further significant
apprecia­tion of the US dollar against the euro as the rope
moves.
— What will 2016 bring? Seven years after the start of the
Great Financial Crisis, markets have now entered a mature phase. However, the higher volatility we thus expected and the associated danger of negative annual returns in the meantime have
shaken the markets surprisingly early at the start of the year. We
therefore once again expect almost double-digit equity yields
for most industrialized countries in 2016, but only mid-singledigit total returns in emerging markets. In terms of stock valuations, we do not see much further upwards potential for priceto-earnings (P/E) ratios.
— Our constructive view of equities is based on two sources:
Expected moderate earnings growth ought to lead to a rise in
prices without a multiple expansion. In addition, there are still
good prospects for dividend growth. Earnings growth should be
driven by successful firms in the technology, finance, health, and
consumer sectors. Dividends, in turn, are gaining in significance:
On a global level, we expect distributions to reach a record level
in 2016. In an environment of very low or negative interest
rates, an expected median dividend of 2.5 percent* is very attractive. The share of total returns attributable to dividends
should increase in the years to come, because we see less potential for share price gains compared with previous years. Our
preference for equities from developed markets remains unchanged. This is due to the fact that many emerging markets
might face further difficulties adjusting to low commodity prices
46
and decelerating growth in China in 2016. We take the view that
the differences in yields for our preferred regions – namely the
USA, Europe, and Japan – ought to be contained in 2016, because earnings growth should be similar in all three regions in 2016
and less influenced by currency fluctuations than in 2015. Accordingly, our focus will be more on the selection of sectors and
stocks in 2016 and less on regional allocations.
— Equity investors will primarily find the winners of further
developments in digitalization in the technology sector. Cloud
computing or big data are no longer just catchwords – they have
turned into multibillion-dollar sales drivers. The most recent
price corrections in pharmaceuticals offer selective entry points
in order to participate in seminal progress in cancer research.
Ultimately, securities in the financial sector should benefit from
the Fed’s decision to raise the interest rates in the USA. Tactical
and selective equity investment could turn 2016 into another
successful year.
*
Expected dividend yield for the MSCI World Index in 2016. Past performance is not a reliable indicator of future returns. No assurance can be
given that any forecast, investment objectives, and/or expected returns will
be achieved. Forecasts are based on assumptions, estimates, opinions, and
hypothetical models that may prove to be incorrect.
likely to strengthen further. Moreover, US investment-grade
debt overall already offers a higher return than euro investment grade, although there may be some interesting pockets in
the latter, such as hybrid bonds. High-yield Eurobonds may also
continue to appeal, at least for investors with a long-term view.
— For a European-based investor, investing into more stable
U.S. assets may therefore become increasingly attractive, as
they could offer the potential for augmenting already decent
returns with currency gains. Of course, yields may rise and
bond prices may fall, but we believe that the rise in US-Treasury yields will be capped and that currency and carry will continue to provide an attractive cushion.
— A diversification across these assets looks the most prom­
ising way of going into 2016. A strong US dollar can affect fixedincome markets in other ways. For example, the headwinds it
creates for commodity prices could hurt many emerging-market issuers, too. Any future improvement in sen­
timent on
emerging-market debt may be just that – sentiment. So far, there is little evidence that it would be supported by a real turn­
around in emerging market economic or corporate fundamentals. So we would stay cautious on emerging markets for now.
— For U.S. investors staying in their home market the story is
less straightforward. While from a risk-return perspective US
investment grade seems more attractive than US high-yield
debt, this view is very much dependent on assumptions about
future US high-yield default rates and, in particular, about energy sector defaults. US investors venturing into the European
fixed-income markets may want to consider currency-hedging
their investments, if they share our belief that the US dollar is
*
Past performance is not indicative of future returns. No assurance can
be given that any forecast, investment objectives, and/or expected returns
will be achieved. Allocations are subject to change without notice. Forecasts
are based on assumptions, estimates, opinions, and hypothetical models
that may prove to be incorrect. Investments come with risk.The value of an
investment can fall as well as rise and your capital may be at risk.You might
not get back the amount originally invested at any point in time.
Illustration: Jan Rieckhoff (2)
47
ac t LO CAL Sn ow P olo W orl d Cu p
W E R T E 0 3 – 2 015 / 1 6
1
2
3
4
(1) Deutsche Bank Wealth Management
is one of the main sponsors.
(2) The Snow Polo World Cup is a highlight
on the social calendar in St. Moritz.
(3) The altitude, cold, and snow are
particular challenges for horse and rider.
(4) The chic ski resort and the mountains
provide the perfect backdrop.
Polo in a
Stunning
Setting
St. Moritz and the
“spor t of kings”
text cristina prinz
48
— The backdrop alone is breathtaking. The snow-covered
summits of Corviglia and Piz Nair stand high in the blue sky.
Dense rows of fir trees dusted in white powder line the
slopes. Amid the scene are the world-famous grand hotels of
St. Moritz. And at the foot of the resort lies Lake St. Moritz
like a stage. This is the setting for the legendary “Snow Polo
World Cup St. Moritz.”
— For the past 30 years the global elite of polo has been
gathering in the famous Swiss ski resort to put their skills to
the test under the most difficult conditions. Four teams with
a total of 16 players battle for victory over three days – a
tournament of superlatives that is known as the “Wimbledon
of polo” for good reason. There is a tradition of polo in St.
Moritz: T
he first playing field was created in 1899 as a pastime
for British officers who spent their vacation here. Polo has
been played on grass in St. Moritz since the 1960s. Reto
Gaudenzi, polo legend from the resort, launched the winter
tournament in 1985. “We no longer wanted to wait until
summer, so we had to be creative.”
— When the first ice layer forms on the lake in December,
preparations are already under way for the tournament, which
is held on the last weekend of January. The thickness and
quality of the ice are carefully measured and the tents and
stands are not erected until clearance has been given to set
foot on it. Around 15,000 spectators and 140 media representatives from all over the world flocked to the resort last year.
— Deutsche Bank has been involved in society, culture, and
sport in many different ways for a number of years and has
been associated with polo in St. Moritz for the last five years.
“Perfect cooperation, thinking ahead, precision, and reliability
are particularly important in the game of polo and in the world
of wealth management,” says Marco Bizzozero, CEO of
Deutsche Bank (Schweiz) AG and Head of Deutsche Bank
Wealth Management for EMEA, drawing parallels between the
“sport of kings” and the way in which Deutsche Bank Wealth
Management develops tailored solutions for its clients.
— The particular appeal of polo on snow lies in the extraordinary challenge for both horse and rider. T
he 80 team
members turn up days before the tournament begins in order
to acclimatize to the snow and the altitude of 1,768 meters
above sea level. T
he hooves of the ponies are fitted with special
Photos: Swiss-Image.ch – Andy Mettler (3); Evviva St. Moritz Polo – Anna Cozzi (2)
rubberized horseshoes. Since the conditions are more difficult
for horse and rider on the snow, the rules have been adapted:
The ball is larger, the playing field smaller, and the periods of
play – so-called chukkas – are shorter than in a conventional
polo match. “Every year our guests are delighted by the special
atmosphere on the frozen lake against the backdrop of one of
the world’s most beautiful mountain panoramas. In no other
place in the world is the warm hospitality and authentic Alpine
lifestyle so closely linked as it is here,” says tournament founder
and hotelier Reto Gaudenzi. T
hat goes for the days and the
Swiss nights.
— When the sun sets behind the mountains of the Upper
Engadin, the famous après polo begins in St. Moritz. Polo
aficionados meet for an aperitif in the recently opened
“Polo Bar.” Gourmet chef Reto Mathis conjures up contem­
porary Alpine cuisine in the “Cascade” restaurant, but the
social highlight of the tournament is the gala dinner at
“Badrutt’s Palace Hotel” with 400 invited guests. Particularly
eye-catching last year was the fashion show featuring polo
players on the catwalk.
49
ACT L OC A L N EX T- GEN
W E R T E 0 3 – 2 015 / 1 6
Zhang Xin
is rising to become
the queen of real estate with the building
boom in China.
— It is a mild fall evening as Zhang Xin opens her new
building on the Bund, Shanghai’s riverfront boardwalk.
Dozens of guests stand alongside her on the roof terrace and marvel at the skyline on the other side of the
river, the sea of light a visible symbol of today’s successful China. Without Zhang Xin it would probably
look different.The buildings belonging to her company
SOHO are futuristic structures, like the Galaxy SOHO
in Peking (photo above) or the Fuxing Plaza in Shanghai. But her Commune by the Great Wall, designed by
twelve architects from Asia, has also caused a sensation around the world and earned the builder a special
prize at the Biennale di Venezia.
3
Women Changing
the Face of China
Text philipp mattheis
50
— The company she runs is the biggest real estate
business in China. T
he 49-year-old mother of two children is worth an estimated 3.5 billion US dollars. But
her career was tough at the beginning. Zhang was
born in Peking during the Cultural Revolution. At the
end of the 1970s she moved to Hong Kong as a
15-year-old. She worked hard in a textile factory and
slept in a room that was barely big enough to accommodate a bed. By the age of 19 she had saved enough
money to buy a plane ticket to London. She arrived
there with a wok and two dictionaries and after completing a language course she studied business in Cambridge. Her first job took her to Goldman Sachs in
New York, but Zhang Xin ultimately returned to
China.
— The great real estate boom was just beginning in
China at the time. Citizens were allowed to buy property for the first time, while urbanization drove hundreds of millions of people to the cities. Within the
space of a few years Peking, Shanghai, and Guangzhou
doubled and trebled their number of residents. Gigantic skylines grew from nothing. SOHO, the company
founded by Zhang Xin in 1995, played its part in the
real estate boom with Zhang Xin’s simple idea:“SOHO
buys land, builds on it, and sells it on for a profit.”
Judy Leissner’s Grace Vineyard has become the most
successful brand for quality Chinese wine. As such,
Leissner has managed to achieve what many thought
was impossible: She has made wine from China
his is no mean feat considering that she had virbig. T
tually nothing to do with wine until she reached the
age of 25. Her father, an Indonesian of Chinese extraction, had emigrated to Hong Kong in the 1970s
and painstakingly built up a small empire of businesses. One of these was a vineyard in Shanxi province.
Eighteen-year-old Judy initially studied psychology in
the USA. In 2000 she returned to Hong Kong and
started working at an investment bank. When her father asked her one year later whether she would like
to take on the poorly performing wine business in
the Chinese province, she said yes on the spur of the
moment. In the meantime, she had married a German
and taken his name.
Judy Leissner
is China’s
answer to Barolo
and Bordeaux.
— At the beginning of her career Judy Leissner was
­often told that she would have no chance in a world
of wine dominated by the Europeans. Wine
connoisseurs in particular had to point out to
the entrepreneur in blind tastings that she had
no idea about grapes and vines. And it was actually true: “All I knew at the time was that Cabernet Franc had a green pepper taste,” recalls
the 38-year-old, whose eyes sparkle feistily as
she talks.
— Today Judy Leissner is the most important
woman in the Chinese wine business, an industry with positive growth forecasts. Sales are continuously rising as prosperity grows; customers are also
maturing, so to speak. Red wine consumption in
China has trebled to 1.87 billion bottles a year within
the space of four years. Per capita consumption is
rising slowly but surely, if only at a low level: At one
and a half liters a year, it is naturally far lower than
that of the French, who on average consume around
44 liters of wine a year, but it is nonetheless rising.
GRACE
VINEYARD
1.5
million
bottles are now
sold by Judy
Leissner’s Grace
Vineyard in China.
Photos: Brent Lewin/Bloomberg via Getty Images; View Pictures/UIG via Getty Images; PR (2)
— In Shanxi province, 40 kilometers south of Taiyuan
aigu Plateau, many different problems awaiton the T
ed Leissner. One businessman wanted to build a
chemical factory in the neighborhood, for instance.
The young entrepreneur was able to prevent it and
continuously expand the wine-growing business. In
2003 Grace Vineyard filled one million bottles for the
first time. In the meantime, Leissner had learned as
much as possible about wine. She read books and attended seminars. A friend of her father’s helped her
to train her palate so that she could distinguish between different tastes. As a result, the mother of two
daughters can now tell the difference between Cabernet and Merlot blind. However, of the one million
bottles filled, just 20,000 were sold at the beginning.
This was probably due less to quality than to inept
marketing, says Leissner. After all, nobody seriously
wanted to believe that good wine could come from
China. The breakthrough came when Leissner
bumped into the manager of the traditional Spanish
brand Miguel Torres in a hotel in Peking.The Spaniard
was so taken by her wine that he told Leissner
he was prepared to work alongside her in the
area of sales. From that point forward, Grace
Vineyard started appearing in the top restaurants in Shanghai and Peking. Inclusion on the
wine lists in the Peninsula Park Hyatt or Shangri-La was a real accolade. — Leissner observes with delight how the buying public is constantly changing nowadays. “Our
buyers are increasingly connoisseurs,” she says.
Grace Vineyard now sells one and a half million bottles; the vineyard grows Cabernet Sauvignon, Cabernet Franc, Merlot, Chardonnay, and small amounts of
Syrah. According to Leissner, there are no plans to
add to the different varieties and bottles. “Too many
sales would have a negative impact on the quality and
we cannot allow that to happen.” Instead, Judy Leissner is launching new products. In 2021 the first Chinese whiskey is set to come onto the m
­ arket.
51
T H I N K G L OB A L Fami ly OF F i ce
W E R T E 0 3 – 2 015 / 1 6
Keeping It in the Family
Masha Ma
is a real
asset to
fashion made
in China.
Rolf Bauer, Head of Family Office Services, discusses how the most affluent,
international families can ensure successful wealth transition.
— Every wealthy family is unique, but
each faces the challenge of passing
hard-earned wealth successfully to
future generations. Many accomplished
families, despite their extraordinary
financial success, fail to overcome this
obstacle. Recent research on more than
3,000 ultra-high net worth families
shows that an astonishing 91 percent fail
to transition their wealth effectively to
the third generation.
— The “made in China” label doesn’t exactly have
the best reputation in the world. After pens, toys,
and, later, cell phones were assembled by migrant
workers in factories in southern China for decades,
many people in the West associate China with cheap,
mass-produced goods and poor working conditions.
Masha Ma has a mission and wants to change this
perception. “I want to establish a brand, an international brand from China and produced in China.” The
designer is currently one of the biggest talents in the
fashion industry in China.
— Fashion in China is still young. During communism, dressing nicely was seen as decadent and bourgeois. Although this changed with the reforms ushered in by Deng Xiaoping at the beginning of the
1980s, it will still take some time before style, fashion,
and individuality gain widespread acceptance. Twenty
years ago, most people still wore a Mao suit. It was
available in two colors: green and blue. It was a similar situation when it came to hair fashion: Those who
went to the hairdresser had the choice between two
hairstyles.
— Masha Ma, born in Peking in 1985, can still remember these times well. She spent the early years of her
life in the capital city. “My childhood years were gray,”
says the 30-year-old. Since her parents were often
traveling around, Ma grew up with her grandmother
in Shanghai – now, as back then, the country’s fashion
capital. Her grandmother was able to give her a
sense of style. She had grown up in pre-revolutionary
China and still valued the beauty of things. “Even in
the darkest years of the Mao regime and the Cultural Revolution, my grandmother never lost her
stylishness,” says Ma. When she was 12 years old, Ma
read an article about the British designer Alexander
McQueen in a magazine.That changed everything for
the young girl: She wanted to be like him.
— She later attended the renowned Saint Martin’s
College of Art and Design in London and completed
internships with McQueen himself and the Belgian
52
MA BY MA
Véronique Branquinho. But it was Alexander McQueen who inspired her current collections. She finished her education in 2008; four years later she
made her debut at Paris Fashion Week and returned
to her homeland to open her own atelier in Shanghai. Around 50 people now work for her label “Ma
by Ma.” Stars such as Naomi Campbell, Lana Del Rey,
and Lady Gaga wear the dresses she designs. Her
fashion style is characterized by simplicity, geometric
forms, and clean lines.
2013
Masha Ma is
“New Design Talent of the Year”
and receives
the Audi Arts &
Design Award.
— Masha Ma is working hard to establish her label
on the international stage. She commutes weekly between Paris and Shanghai. She kills time on the flights
reading Western literature, including works by Franz
Kafka. Ma has become something of an idol to many
of her generation. On W
eibo, the Chinese version of
Twitter, she has more than 190,000 followers. In the
coming years, she wants to open a hundred boutiques in China and gear her fashion towards the
petite Asian physique – a gap in the market. “China
will become the fashion center of the world in the
coming years,” says a convinced Masha Ma.
Photos: Jonathan Browning / The Guardian; Kristy Sparow/Getty Images
— With nearly 30 years of experience,
our Family Office Services team is
dedicated to ensuring wealthy families
preserve, grow, and successfully
transition their wealth to future
generations. Over decades, we have built
a deep and exclusive network of clients
and advisors with whom we develop
both best practices and bespoke
solutions for individual families’ unique
priorities and situations. Drawing on
Deutsche Bank’s global financial and
wealth-planning expertise, we act as a
trusted long-term partner working
collaboratively with families worldwide
to ensure successful wealth transitions.
— A conversation typically starts with
a look at the client’s overall financial
situation. The geographic jurisdiction of
both the assets and the heirs is a key
consideration; when a property in the
UK exceeds the £ 325,000 threshold,
for instance, the estate of the deceased
person can face a 40 percent inheritance
tax charge, regardless of the heir’s
nationality or place of residence. Here
Deutsche Bank’s global footprint lets us
provide uniquely valuable insight. Then
we discuss the outlines of a succession
plan. Clients with multiple heirs may
want to ensure each heir gets an equal
share. Others may divide the inheritance
disproportionally. Each solution calls for
a different structure. The details of holistic wealth planning are intimate and
complex, calling for both discretion and
financial expertise. One client aimed to
ensure that his business would be
passed on to one of his three children.
With his wealth tied up in the business,
however, he sought liquidity for his
other two heirs. We worked with him
on a detailed succession plan, including a
jumbo life insurance policy funded from
current assets that in the event of their
departure, would provide adequate
benefit payments to the heirs who
would not inherit the company. While
we rely on our global financial expertise
“
Intergenerational wealth loss
is so common that many cultures
have their own sayings for it:
“Wealth rarely survives three
generations,” Chinese proverb
“Wealth comes like a turtle and goes
away like a gazelle,” Arabic proverb
“CHI LA FA, CHI LA MANTIENE
E CHI LA DISTRUGGE”
“One who makes, one who maintains,
and one who destroys,” Italian proverb
“THE FATHER bUyS, THE SoN
bUILDS, THE GRANDCHILD
SELLS, AND HIS SoN bEGS”
Scottish proverb
“ERWERbEN, VERERbEN,
VERDERbEN”
“Acquire, leave, ruin,”
German proverb
”
No assurance can be given that any forecast or target will be achieved.
for successful wealth transition, another
main facet of our offering is our deep
external network. When a client sought
advice on how best to ensure his heir
was prepared to take over the business,
our external partner’s contacts at the
world’s best business schools helped our
client find an institution that was the
right fit. Another client in the pharmaceutical industry was looking for a family
buyer; our global network of like-minded
families let us make those introductions.
— Many successful business owners are
reluctant to plan for what will happen
when they’re gone. But a lack of
transition planning can cause disarray,
putting the company’s standing, the
family’s relationships and the wealth
itself at risk. Together with expert external advisors who focus on corporate
operational details, we guide clients in
creating family succession plans,
including advising on how to select and
prepare family members who will – or
will not – take on leadership roles.
Families also require detailed governance structures to guide their
decision-making and help minimize
disputes in the first generation’s absence.
And the wealth itself must be structured
for succession purposes in a way that
ensures its preservation and growth, in
line with each client’s unique goals.
— Increasing family wealth and globalization alike have made family- and
succession-planning a hot topic among
financial institutions. We welcome the
surge of interest in this important field,
where we’ve dedicated years to
developing deep expertise. We have
in some cases worked with several
generations of the same family to ensure
their financial expectations are met as
the wealth is handed down. We look
forward to continuing to provide
expertise, continuity and stability to a
new generation of accomplished families.
53
a c t l o c a l m a n u fa c t u r i n g
Made in … Switzerland
A Visit to
Watch Valley
TEXT thomas byczkowski
— Southwest Switzerland, on the summit of
the Dent de V
aulion, 1,483 meters above
sea level. T
his where all the clichés of the
land of Heidi come true, with its Alps, cows,
he plateau of the Jura
and cheese. T
Mountains extends to the west; dense
forests stretch as far as France. In the
southeast the Alpine panorama radiates
around Mont Blanc; in between lies the Joux
Valley with its crystal-clear lake and lush
meadows. Cowbells ring nearby and fifty
meters beneath the summit is a place of
pilgrimage for fondue fans: a chalet d’alpage
with petting zoo and sun terrace. It sounds
a little kitsch, but that isn’t the whole truth,
says Bernhard Zwinz, while scraping a fork
around a fondue pot. “Six thousand
commuters travel to this valley from France
every day.” T
hat’s as many people as there
hey all
are residents in the entire valley. T
work here, because the most important
brands in the industry have set up their
allée de Joux.
production sites in the V
“Welcome to Watch Valley,” says Zwinz,
laughing.
Historical tools
are still used in
the factories in
Watch Valley, such
as this old lathe.
— The only way of getting here from
Geneva is to drive up steep switchbacks to
the Col du Marchairuz at an altitude of
fourteen hundred meters. On the other
side of the pass the descent into the valley
toward Le Brassus is just as steep. From
there the journey continues to Le Sentier,
L’Orient, and L’Abbaye, to all the little
places on the banks of Lac de Joux. And
there is not one single traffic light along the
way. Chamois graze by the side of the roads
and at six o’clock in the evening everywhere looks deserted. Y
ou could call it
kitschy or romantic – or a disadvantage of
the location.
— Nonetheless, the valley is one of the
most dynamic economic regions in
Switzerland, a kind of Helvetian Silicon
54
PHOTOS Sébastien Agnetti
Valley. Nowhere else is it possible to find
history and the future so closely intertwined. State-of-the-art machinery is used
to shape and mill the watch. Research is
conducted to determine what makes the
five-hundred-year-old mechanical watch so
desirable in the new millennium. It has
nothing to do with a romantic cliché, but
rather the demands of a billion-dollar
industry.
Bernhard Zwinz is one of the leading independent watchmakers. For
months he has been working with
total dedication on what is probably the most expensive watch ever
produced in Switzerland.
Hardly anyone
­wanted to live here
before, but the
­Vallée de Joux is
now a boom valley.
The Swiss watchmaking industry is
drawing strength for
the future of the
entire sector from
its history.
­ lancpain, ­Breguet,
— Audemars ­Piguet, B
Bulgari, ­Jaeger-LeCoultre, and Vacheron
Constantin – they have all set up their
factories here. T
hey look like soup ladles in
a fondue pot in between the centuries-old
villas and chalets. Even the famous Genevabased producers Patek Philippe and
Vacheron Constantin have premises here.
But why exactly do the glitterati of the
watchmaking world congregate here of all
places?
— The reason becomes apparent when you
observe Bernhard Zwinz at the workbench
in his atelier in L’Orient. He works as an
independent watchmaker for various
manufacturers and designs his own watches.
Zwinz is a stoic individual with slim fingers
and obviously well-manicured nails. Obvious
because his fingernails are larger than the
tiny moving parts that he is gluing into a
small block, before polishing them with a
hat is being witnessed
piece of wood. W
here – between old lathes and watch books;
between screwdrivers, sandpaper, and
elderberry twigs – is living history.
— Generations of watchmakers have filed
cogs and polished bridges here in the valley
just like the 41-year-old – patiently,
diligently, and precisely. T
he fact that an
Austrian of all people has ended up here is
just as unusual as the sight of the modern
factories in the valley. Zwinz came to
55
a c t l o c a l m a n u fa c t u r i n g
W E R T E 0 3 – 2 015 / 1 6
valley having a kind of monopoly on the
global production of highly intricate
mechanical watches. More than 95 percent
of the world’s grand complications,
repeaters, and sonnerie
­­
watches are made
here. T
hat may sound like a lot, but these
watches are so complex that even the
major manufacturers only ever produce a
handful at most each year. Five hundred tiny
parts on an area the size of a two-euro coin
are not uncommon in a s­ onnerie. It strikes
the time on an integrated glockenspiel.
Grand complications are watches that have
at least three such additional functions –
known as complications – usually in the
form of a perpetual calendar, stopwatch, and
tour­billion. If there is an additional striking
mechanism, this could also mean another
thousand parts.
— There has always been an abundance of
time for such tricky tasks in the V
allée de
Joux. T
hat’s because the winters in the Jura
Mountains are hard; the valley used to be
almost cut off from the rest of the world
for six months of the year and the paysans­
horlogers –­ the peasant watchmakers –
who had worked on their farms in summer
sat in their warm parlours in winter, waiting
for the snow to melt. People still need
snowblowers rather than shovels here in
winter. Snow clearing services are in
continuous operation on the roads; the
passes remain closed off until well into April.
But the peace and tranquility is shattered by
seven in the morning at the latest, when
convoys of French cross-border commuters
roll into town to keep the boom going in
the valley. Shuttle buses and car pools are
designed to make the traffic chaos more
bearable. Some people relocate here, with
consequences for the entire region: The
vacancy rate is less than one half of one
percent and thus on a par with the
cosmopolitan city of Zurich.
Le Pont, on the northwesterly outskirts of Lac de
Joux. The steep roads lead to France from here.
Switzerland almost twenty years ago as a
young watchmaker and worked in the
ateliers of the top Geneva-based manufacturers V
acheron Constantin and Roger
Dubuis. W
hen he expressed an interest in a
position at the luxury brand B
­ reguet in the
valley, he heard about another opportunity:
Watchmaking legend Philippe Dufour
needed help to make a new watch series.
— Dufour is seen as the guardian of the
tradition of haute horlogerie, the supreme
art of watchmaking. As a genuine Combier,
as the people here call themselves, he
continues to make the most intricate
wristwatches and pocket watches completely by hand using traditional methods.
Accordingly, there was an endless line of
applicants. “Dufour got so fed up with all
the watchmakers who ultimately didn’t have
the necessary experience that he put
together a little book filled with questions
on the art of watchmaking,” says Zwinz.
“Anyone who was unable to answer every
question was out the door again faster than
he Austrian was able to
they could blink.” T
answer every single one. What followed
proved to be the finishing touch for the
watchmaker.
— Zwinz learned all the tricks of the trade
that watchmakers had developed in the
Vallée de Joux over the centuries – the
same tricks of the trade that have led to the
56
Bernhard Zwinz has procured a
­historic lathe for his work. He files
and polishes everything by hand.
­ iguet opened
— Six years ago, Audemars P
state-of-the-art production facilities for
more than five hundred employees near the
train station in Le Brassus. A similar number
of people work on the main street, in the
Wilhelminian villa with museum and in a
large, steel-clad purpose-built building.
­Jaeger-LeCoultre, the oldest manufacturer
here in the valley and famous for its
Reverso watches, has erected a highly
modern complex around the original
building in Le Sentier for around a thousand
employees. A few hundred meters further
down the road is the long building owned
by ­Blancpain. It is an extension belonging to
the company Frédéric P
­ iguet, once an
independent watchmaker, but now part of
he different building sections
­Blancpain. T
reveal when the company was experiencing
good times economically – an extension
was built in 1914, others followed in 1930
and 1948. Breguet, probably the most
famous name in the industry, has its
headquarters directly opposite Zwinz’s
he company spent
atelier in L’Orient. T
more than 30 million francs on the last of
four expansion stages two years ago. T
he
new parking lot is the size of a soccer field.
— It has been a long time since the
industry was fully committed to traditional
watchmaking values. On the contrary. While
traditionalists such as Bernhard Zwinz still
work on metal cogs and bridges in several
stages using ever finer files, polish, and
woods in order to minimize friction within
the movement, for ten years premium
brands such as B
­ reguet, Jaeger-LeCoultre,
and Patek Philippe have been using silicon
as the new material for the escapement, the
sensitive timekeeper of every mechanical
watch. Formed with micrometer precision
based on a computer-aided design and all
one hundred percent identical with one
another, components such as the escape
wheel, anchor, and even the fine balance
spring are produced in a laboratory using a
computer-assisted etching technique – antimagnetic, low-friction, and ready to fit, with
no polishing or grinding required.
— Why go to all this effort? The official
answer is because wristwatches are much
better as a result. During daily use the
precision of the watches is adversely
affected, because they are exposed to
magnetic influences from speakers,
microwaves, and cell phones. The second
reason is that such a process is the only
way of expanding capacity. At B
­ reguet these
high-tech parts are fitted in the “Tradition”
timepieces, whose movements are based
on old pocket watches. At ­
Jaeger-­
LeCoultre, they tick in the “Master
Grand Tradition” series, where tradition
really does meet modernity. These
components, however, ultimately also have
to be fitted into the watches. And since
silicon can easily shatter in the process, the
manufacturers still rely on the expertise of
the stoic watchmaker with his decades of
experience.
Photos: PR (7)
6
GLOBAL BRANDS
FROM WATCH VALLEY
Hundreds of watchmakers
work under the watchful eye
of Marc A. Hayek at B
­ reguet.
Founded in 1775, 750 employees,
approx. 25,000 watches a year
Founded in 1884, approx. 1,800 employees,
approx. 12,000 watches a year
Founded in 1735, 750 employees,
approx. 20,000 watches a year
Founded in 1875, approx. 1,000 employees,
approx. 37,000 watches a year
Founded in 1833, approx. 1,000 employees,
most expensive watch: 290,000 euros
Founded in 1775, approx. 400 employees,
approx. 19,000 watches a year
— To increase productivity, however, a
growing number of work processes are
being automated. Specialists are also being
trained to take sole responsibility for tasks
including adjusting the escapement, decorating the bridges, or turning so-called
“guilloches,” microscopic patterns on the
faces. Three dozen guillochage machines
hum away at B
­ reguet, copied from a
hundred-year-old model. State-of-the-art
CNC milling machines buzz one floor
below in a shift operation. The cogs, pins,
and screws are mostly made on the
production line, where the movements
are also assembled. The movements are
retrieved in small boxes from an automatic storage unit on a rail system and
fly from one workstation to the next,
receiving a drop of oil here and a cog
there.
— Despite all the automation, the old
handcraft remains the most important
factor when making a watch, especially
those that are primarily produced
individually, for which customers are
prepared to pay six-figure sums. After all,
no machine can replace a watchmaker
who assembles the dozens of delicate
little feathers in this thousand-piece puzzle
in such a way that in a calendar watch,
for instance, only the date display moves
forward on one particular day and the
displays for the day, week, month, and year
move forward simultaneously on the
following day – and probably do the
same in a leap year.
­ ufour
— Watchmakers such as Philippe D
and Bernhard Zwinz need several months
before they can get these timepieces to
tick perfectly. And this is also precisely
the reason why the industry giants have
settled here in the valley on a massive
scale. Nowhere else in the world are
there so many accomplished craftsmen
who can deal with even the most complex
mechanisms. They don’t just keep alive the
well-loved advertising image of a watchmaker hunched over his table assembling
tiny parts by hand against the backdrop
of a snow-covered landscape outside. For
the global brands such talented individuals
really are indispensable craftsmen. They
are so sought-after that the companies
have even followed them with their
factories to the remote V
allée de Joux.
After all, real Combiers don’t like to
venture too far from their valley.
57
THINK G L OB A L global w ealt h solu t i on s
W E R T E 0 3 – 2 015 / 1 6
TEXT Joellen Perry
PHOTO Andrea Artz
Know Where
You Stand
— Dr. Kolb, how would you describe
Deutsche Private Port?
It enables a holistic, transparent, and
real-time overview of all your assets.
Portfolios and assets held across multiple
banks are consolidated via one central­
ized software platform. T
his detailed and
independent insight, which clients can
tailor to their own reporting needs and
access on any device, simp­li­fies and
streamlines both financial accounting
and investment decision-making.
Who are Deutsche Private Port’s
typical clients and what challenges
do they face?
We work primarily with investment
officers at family offices, foundations,
and corporate offices who manage total
assets of 100 million to five billion euros.
Our clients have a very high level of
direct responsibility and must ensure
their portfolios are diversified across
asset classes, institutions, and countries.
A key issue is ensuring that their lean
teams get current, transparent portfolio
information without drowning in
heir
administrative or IT issues. T
challenge is to be comprehensive,
efficient and effective.
For 15 years, Deutsche Private Port has been simplifying
asset management and financial reporting for
family offices, foundations, and corporate offices. We talked with
Stefan Kolb – Head of Private Port & Financial Intermediaries
at Deutsche Bank Wealth Management – to understand more.
58
How does Deutsche Private Port help
clients meet these challenges?
Our service has three main components.
First, with more than 80 participating
financial institutions in more than 11
countries to date, Deutsche Private Port
has the broadest available network of
connected banks in Europe. So our
clients can access a consolidated
overview of their entire portfolio.
Second, we’ve integrated real and
alternative assets, such as real estate and
precious-metal holdings, into the system.
That’s essential because very few offices
invest exclusively in real or financial
assets. Third, our clients have direct
access to this information in a form that’s
e offer 50 standard
relevant to them. W
reportings and have tailored another
30 bespoke reporting packages. Every
month, at the push of a button, Deutsche
Private Port creates 34,700 fully
automated reports.
What are some exclusive features
of the service?
No one in Europe has a comparable
network of banks or offers a similarly
transparent service. Our clients don’t
want to work with middlemen. They may
have three different funds in three
different countries managed by six
different banks, but if the market crashes
today, they need to know immediately
where their portfolio stands. Because
we’ve also invested in digital integration,
our clients can get this information
anywhere, at any time. T
here are some
very good asset management software
packages out there. But they’re not
comparable to a comprehensive service
and infrastructure platform with a
painless setup process and a personal
service manager in Frankfurt. Software
packages also lack the network of
connected banks, so an investment
office would have to input all their data
manually. W
e go to the information
source directly to organize an asset
overview on the client’s behalf.
How was Deutsche Private Port first
created and what is its market
penetration today?
I’ve had the privilege of leading the
Deutsche Private Port team since it
began in 2000 and have led the develop­
ment of this software product from the
very beginning. Clients then wanted a
reporting service for all assets managed
by Deutsche Bank. The 2008 financial
crisis brought the question of diversifica­
tion to the forefront. Today, most of the
major banks and investment companies
use our platform. In Switzerland, for
instance, Deutsche Private Port is used
by leading banks which account for 70
percent of the market. Across Europe
and worldwide, our network of con­
nected banks continues to grow. In the
fourth quarter of this year, we expect
to add at least 20 new banks. Our client
base is also growing. W
e have an
established solution for 280 clients, the
majority of whom are either in Europe
or focusing on European assets. Now
we’re starting to see demand from North
America and Asia and we’re establishing
a name for ourselves in those markets.
Can you give us examples of how
Deutsche Private Port helps investment officers in their daily work?
Determining portfolio allocation is a
good example. An investment officer
may only have 15 minutes to determine
whether his portfolio is allocated
correctly. Let’s say he wants at most
20 percent of his assets in international
holdings. On Deutsche Private Port, he
can see quickly whether he’s closer to,
Deutsche Private Port is currently not yet available in the United States of America.
say, 25 percent. Concentration risk
is another important topic. Deutsche
Private Port gives investment officers
easy insight into their top concentrations
– in individual positions or currencies for
instance. Of course, performance analysis
is key. Our clients can see immediately
how their investments are performing
and analyze them by asset class, custo­
dian, duration or a number of other
features. T
he answers to these questions
are relevant to many decision makers, so
we see that among our 280 clients the
platform itself has more than 1,800 users.
When you develop a new feature for
a client, do other clients benefit from
the innovation?
Sometimes clients want to keep these
bespoke solutions exclusive, but with
the permission of the client we do often
develop innovations that become best
practices for the entire platform. One
example is the topic of performance
attribution, or determining the holding
that has the most impact on a portfolio.
You could devote an entire division to
this issue. But our customers want to
know in one to two pages: What are the
relevant holdings and what’s the impact
of the allocation decisions we make in
the investment committee? Another
popular client-led innovation is the
private equity report, which shows
the whole life cycle of a private equity
e also worked
investment on one page. W
with several clients to integrate both
book and market values into the system,
because investors need to see both
values simultaneously.
The theme for this edition of WERTE
is dedication. What does dedication
mean for your team?
Deutsche Private Port exists today
because of our innate commitment to
e listen to their complex
our clients. W
needs and have delivered a product and
surrounding holistic service offering
which is unique to the marketplace today.
I personally frequently meet with clients
to ensure the platform is working as
effectively as possible for them individ­
ually. T
he key is to always be open
to ideas and this happens by making
ourselves available. W
e’re dedicated to
continuously innovating new ways to
tailor Deutsche Private Port to each
client’s individual needs and I am
convinced that this aspect of the offering
will only improve as time goes on.
59
THINK G L OB A L K hat i a Bu n i at i shvi l i
W E R T E 0 3 – 2 015 / 1 6
Quick Chat with
…
— You made your orchestra debut
at the age of six and grew up as
a wunderkind, although it seems
that you don’t like the term.
Why?
Of course there are children that
possess an extraordinarily rich
­imagination and talent in a certain
area. Wunderkind is a very nice term
for it. What I don’t like is when people
train these children and parade them
like circus animals. It’s not about
nurturing the child, but more about
the spectacle and the astonishment
of the general public. Mentally that is
very dangerous for wunderkinder,
particularly since most of them are
highly sensitive.
You dropped out of school in
order to concentrate on your
career. That demonstrates a strong
will, but was undoubtedly also
associated with a huge amount of
pressure. Did you ever doubt
that you would make it to the top
of the world?
Above all else, my family wanted me
to be happy and keep my life in perspective. Of course my mother made sure I
remained disciplined, but playing the
piano was like a game to me at first and
later became my favorite pastime. There
were never any doubts that I would
devote my life to music. But “top of the
world”? That is merely a date people
have at a certain point in history. It says
nothing about whether I am successful
or happy as an individual.
Khatia Buniatishvili
The Georgian pianist is the rising star of the classical
music world. WERTE talked to her about discipline,
dedication, and political engagement.
TEXT sarah elsing
60
Some musicians report that they
feel “naked” on the stage, because
their passionate playing exposes
their inner feelings. You appear to
have no problem with that, or do
you?
No, I really don’t. I surrender myself
completely to my emotions when playing
music. To do anything else would be
dishonest. I used to be quite shy and
reserved about expressing myself
physically onstage. There was a certain
distance between me and the instrument which some people perceived as
arrogance. Nowadays I don’t really care
what people think about me. I try to be
as authentic as possible. I don’t hide my
feelings. And I find that I am able to
affect people more deeply.
Photo: Esther Haase, Sony Classical International
Both onstage and on some CD
covers you reveal quite a lot of flesh.
Is that part of your strategy of
self-exposure?
Flesh was very important to me in the
photos for the Chopin album, because it
shows youth or old age; health or illness.
This combination of youth and illness is
very important to me with Chopin. Even
onstage every dress has a special
meaning and corresponds to each
program that I play. Even though I am
revealing a lot of flesh on the cover of
my album “Motherland” as a symbol of
the fertility of women, I have my eyes
closed. This keeps the beholder at a
distance.
It could nonetheless be said that you
exposed yourself on an even deeper
level for “Motherland.” It is your
personal album and dedicated to
your mother …
I generally don’t talk too much about
my inner feelings, but it’s different in art,
because art is the realization of a
fantasy. There can be no dogma and you
really have to be honest. Music has given
me the power to open myself up more
and pay less attention to what people
think of me. It was the only way in
which it was possible for me to make an
album like “Motherland,” which provides
an insight into my inner universe. As
such, portraying my journey from the
bosom of my mother to becoming a
fully grown woman in the language of
music is highly personal. On the other
hand, my experiences are naturally
universal. Every woman has her own
inner world and has the gift of fertility
and creativity. The special gift of giving
life to others is comparable with art: We
give it as a kind of gift, but it doesn’t
belong to us.
“Motherland” is also about your
homeland. What relationship do
you have with Georgia now, since
you have lived abroad for so many
years?
I have family there and still feel a strong
connection to the people and the
country. My character is very Georgian – for both good and bad – and, like
every Georgian, I am proud of my
homeland, of its music and literature. I
think it is very nice to have a sense of
these roots without living there. It gives
me a color. But I tend to see myself as a
citizen of the world. I wish there didn’t
have to be borders between people and
countries. But of course it is necessary
to a certain extent.
In 2013 you were part of Gidon
Kremer’s concert “To Russia with
Love: Festival for Human Rights”
in Berlin. Was that an exception
or do you think that artists have
a responsibility to speak up in the
political sphere?
With success comes responsibility as
well as a bigger opportunity to influence
people. It is important to steer this
influence in the right direction. I
certainly have a special sense of
responsibility, because I lived in Georgia
at a time when human rights were not
really upheld. If success gives us artists
the opportunity to draw other people’s
attention to injustices, then we should
use it.
What would you like to draw the
world’s attention to?
I regularly organize benefit concerts for
a hospital in Kiev that barely has the
means to care for those injured in the
civil war. I have just been there. It is
wonderful to be able to offer the
patients concrete help and give a little
joy back through music. I am also a “Plan
International” ambassador campaigning
against female genital mutilation in
Africa. There are plans for a concert
tour in Mali in 2016. That will be
exciting: The people there have hardly
any contact with classical music, which
means that I kind of have a double
mission there.
Motherland
Khatia Buniatishvili plays the
works of Chopin, among
others, on her CD.
61
T H I N K G L OB A L A RT
W E R T E 0 3 – 2 015 / 1 6
Art Inside
Culture
Four Tips from
the Scene
1
Manifesta 11
MEMORIAL TO DADA
Christian Jankowski, concept artist and
curator of the eleventh Manifesta.
62
Cabaret Voltaire in Zurich,
birthplace of Dadaism – and
platform for the Manifesta.
— “What People Do for Money” – the
title of the eleventh Manifesta could
hardly be more apposite. That’s because
the European biennial for contemporary
art is being held in the financial and
business city of Zurich this year. In
contrast to the heavy theory-based
contrivance of previous Manifestas –
like in 2014 in St. Petersburg – curator
Christian Jankowski’s concept is really
tangible: The invited artists choose a
career from a long list and get local
representatives of the chosen profession to showcase their Zurich, their
work, and their everyday lives. What
emerges from it all remains open. The
important thing is that the art is
situated outside the classic cultural
institutions. One exhibition venue, for
example, will be the “Übermut” meat
market, where the artist Theo Tendon
gets together with Zurich butchers to
sell long-forgotten specialties from the
innards of the animals – sinews, spleen,
heart, and testicles, which are prepared
in cookery courses and tasted in the
restaurant next to the slaughterhouse.
One evening will be dedicated to the
tradition of Dada, whose main venue
was the famous Cabaret Voltaire in
Zurich. The art carousel will be held
together in the “Pavilion of Reflections” – a hybrid of bar, public baths,
movie theater, and auditorium, which
is designed to evoke reflections of
all kinds.
6.9–9.17.2016, Zurich
www.manifesta.org
Michelle Kuo
Editor in Chief, Artforum
— It’s hard to make
good art. It’s even harder
to make good art that’s
funny. But for decades,
Swiss duo Peter Fischli
and David Weiss did
just that using slapstick
and satire to travesty
the sanctities of Western
civilization, turning wit
into a serious force of
destabilization. So I am especially looking forward
to the pair’s first full retrospective in the US,
opening at the Solomon R. Guggenheim Museum
in New York on February 5. T
he show will feature their now-classic film The Way Things Go
(1987) which is one of the most incisive explorations of causality and contingency I have ever
seen. Working in a staggering array of media,
Fischli and Weiss created an art for our precarious age. One might think that another major
show of the season, Conceptual Art in Britain,
1964–1979 at Tate Britain, will have considerably
drier fare, but artists such as Stephen Willats,
John Latham, Mary Kelly, and Richard Long
displayed their own wry insights as they explored
new systems of information, organization, and
bureaucracy in the postwar period. And a major
Marcel Broodthaers survey at the Museum of
Modern Art in New York will shed new light on
the Belgian conceptual artist’s playful yet scathing
take on hoary institutions like the museum and
the nation-state.
Photography is another focus of the spring, with
a two-venue retrospective of the work of
Robert Mapplethorpe – by turns astonishingly
elegant and prurient – at LACMA and the Getty
he artist’s shots of louche kids
in Los Angeles. T
and downtown New York find a sequel of sorts
in Wolfgang Tillman’s revelatory realism, which
will be on view at the Serralves in Portugal.
Marina Pinsky, a young artist whose mesme­r­
izing pictures suture the digital and analog, takes
center stage at the Kunsthalle Basel. And a
large-scale exhibition at the Whitney Museum
of American Art will feature Laura Poitras’s
piercing lens, which she has trained on subjects
such as Edward Snowden and the American
government’s massive surveillance of its own
citizens. Digital and virtual optics are also at
the center of the upcoming 30th Biennale of
Sydney, whose title and theme are taken from
the words of science fiction guru William Gibson:
“The Future Is Already Here, It’s Just Not Evenly
Distributed.” Indeed.
2
Fischli & Weiss
SUDDENLY THIS OVERVIEW
— Declaring a chain reaction
in the workshop to be art.
Recreating global events in
clay. Staging the crash of two
sausages. Fischli & Weiss must
have had an incredible amount
of fun in their studio. In a major
retrospective curator Nancy
3
Georgia
O’Keeffe
— A century after her debut
in New York, London’s Tate
Modern is dedicating a com­
prehensive show to Georgia
O’Keeffe. The headstrong artist
was one of the founding figures
of American modernism with
her abstract landscape paintings and became a pioneer for
later generations of feminist
artists.
7.6–10.30.2016
Tate Modern, London
Photos: Mar tin Stollenberg, Manifesta11, privat, © 2015, Peter Fischli and David Weiss, Georgia O’Keeffe Museum, Ar t Basel,
Spector provides an overview
of the Swiss a­ rtistic duo’s 30-year
career and shows how much
seriousness there is in the trivial
and h­ umoristic works in spite of
everything.
2.5–4.20.2016,
Guggenheim Museum, New York
4
Art
Basel
— The way from the Manifesta
in Zurich leads directly to
­Basel, where the world’s most
important art fair is held in June.
View high-class art by day and
enjoy cocktails and parties by
night. Nowhere else do dealers’
insider tips trip off the tongue
more easily than while sipping
a drink after a long day at the fair.
A real must for every collector
and art lover.
7.16–7.19.2016
63
T H I N K G L OB A L ART I ST P ORT RAI T
W E R T E 0 3 – 2 015 / 1 6
“TALL TREE AND THE EYE”
is the name of Anish Kapoor’s
­installation standing in the inner
courtyard of the Royal Academy of
Arts in London. It is 20 meters high,
making it one of his smaller works.
Art Knows
No Limits
TEXT Sarah Elsing
“DIRTY CORNER” – Anish Kapoor and his installation in Versailles.
Anish Kapoor
pushes boundaries –
and not just because
his sculptures
are gigantic.
His art speaks
a language that is
­understood all over
the world.
64
Photos: Macdiarmid/Getty Images; Chesnot/Getty Images
— His works of art are measured in dimensions usually only
reserved for aircraft and ocean liners. Anish Kapoor, megastar
of contemporary art, says he likes to build sculptures that are
bigger than the spaces that enclose them. That being the case,
which exhibition location could be more appro­priate for fulfilling such a wish than the realm of the Sun King, Louis XIV,
whose grandiosity was often imitated, but never equaled?
Accordingly, a giant rusty funnel, whose shaft was covered
in earth, rocks, and lumps of red concrete, stood amid the
splendor of the Parc de Versailles last year. The idea was for
“Dirty Corner” to disrupt the geometry of the baroque garden. “I wanted to invite chaos,” says Kapoor. He succeeded.
No sooner had it been incorrectly reported that the artist dubbed the object “the Queen’s Vagina” than an outcry
erupted throughout the French nation of culture. After being
attacked with paint, the sculpture was vandalized with antiSemitic slogans. Yet instead of ­undertaking the Sisyphean
task of removing it time and again, Kapoor allowed the graffiti to remain. It is now part of the work of art for the son
of an Indian Hindu and an Iraqi Jew. The scars of injury and
intolerance should remain visible “to remember the antiSemitism that we would rather forget.”
It was a radical act, but hardly surprising given Kapoor’s
approach to art. The idea of besmirching sacred institu­
tions, upsetting the normal order of things, and leaving behind wounds and scars is a recurring theme in his work. In
2009 Kapoor installed a huge block of red wax (Svayambh,
2007) which moved through the sacred halls of London’s
Royal Academy of Art. The c­olossus not only left a sticky
mark in its trail on the parquet floor. The ornate wooden door
frames were also smeared with wax. That’s because the block
of wax was ­bigger than the ­doorways and had to be forced
through. In the work “Shooting into the Corner” a canon
fires red lumps of wax into a corner every twenty minutes,
where they leave behind stains and welts on the wall and a
smooth heap on the floor. Art ­historians such as Sir Norman
65
T H I N K G L OB A L t ren d
WHat’S HOt In …
1
1
­ osenthal see a transition from ­abstract ­expressionism to a
R
spatial art form. The art canon is a kind of continuous
­performance.
Besides color and material – which evoke associations
with blood, soil, and the primordial – the size of the works of
art also plays a role. In 2008 Kapoor fitted a rust-­colored
giant called “Memory” into the rooms of the Deutsche
­Guggenheim in Berlin. The steel construction can only be appreciated in its entirety by walking around it. The ­experience
becomes essential when you look inside it and are confronted
by darkness, as if we were looking inside o­ urselves.
Kapoor’s gigantomania reached its zenith in 2011 with
­“Leviathan,” whose inflatable red membrane almost e­ ntirely
filled the 240-meter-long and 45-meter-high Grand Palais in
Paris. For the Olympic Games in 2012 he built the ­“Orbit,” a
115-meter-high, twisting, and ­abstract observation tower in
London’s Olympic Park – as an allegory for the network-like
complexity of the world.
Kapoor himself has now also reached the zenith of his artistic
career. Born in Mumbai in 1954, he initially wanted to continue the family tradition and become an engineer. However,
after spending three years on a kibbutz in Israel he decided
to study art in London. It was a decision that was rewarded
in 1991 when he won the renowned Turner Prize. Kapoor is
now regarded as one of the most important sculptors of his
age. Queen Elizabeth II knighted him in 2013 and, although
initially unpopular, the “Orbit” can now be found on the
pages of the new British passport. Sir Anish nonetheless resists assimilation. “I am used to being an outsider. I am used
to not belonging. I like that. It has its advantages.”
Kapoor really does speak a visual language that is understood
all over the world. His concave and convex mirrors distort
the picture we have of ourselves and the world. The stainless steel sculpture “Turning the World Upside Down III,”
which stands in the lobby of the London ­headquarters of
Deutsche Bank, literally turns the world on its head as soon as
you look inside the globe. Another level of reflection ­reveals
itself in “Cloud Gate.” The shiny silver sculpture in Chicago’s
Millennium Park is smooth and sleek. Its s­ urface reflects the
clouds and the city’s skyline. “Cloud Gate” a­ ttracts p­ assers-by
to the space ­underneath the ­inflated silver object like a mag-
66
Italy
Messner – the peak
of mountaineering
2
— The new museum by Reinhold
Messner on Kronplatz in South Tyrol is
as extreme as his mountain expeditions: At a height of 2,275 meters, star
architect Zaha Hadid has driven a
concrete wedge through the rocky
mountain. It is now the sixth museum
in the region, which the first conqueror of all 14 eight-thousanders is
dedicating to aspects of alpinism and
the mountain world.
www.messner-mountainmuseum.it
3
2
4
(1) “MEMORY” is made
up of 154 steel plates,
is 14.5 meters long, and
weighs 24 metric tons.
(2) “Leviathan” gives
visitors the oppressive feeling of being inside the belly
of a whale.
(3) “Shooting into
the Corner” involves
a cannon shooting lumps
of wax against the wall
with the aim of creating
a 20-ton red mass.
(4) “Cloud Gate”
in Chicago places the
visitor at the center of
the universe.
net. Above their heads an ­image of ­unimagined beauty appears: a reflecting s­ urface based on the omphalos, the iconic
stone that symbolizes the center of the earth in the Temple of
Delphi. In Kapoor’s omphalos, however, beholders see themselves. They decide where and how they locate themselves in
their own constellation and determine the relationship they
establish with those around them.
DubaI
Furoshiki shoes
Cavalli from A to Z
— “Barefoot shoes” were
yesterday. The latest trend among
running fans is furoshiki shoes,
which gently envelop the foot like
a shell. A furoshiki is a square cloth
used in Japan for packaging and as
a carrier bag. Among the environmentally aware Japanese the
furoshiki is a popular alternative to
the plastic bag. Designer Masaya
Hashimoto has now transferred
the principle to the sneaker for
Italian label Vibram. The wraparound shoe made from high-tech
elastic material adjusts perfectly to
the shape of the foot, provides
stability, and makes a good
impression not only in tartan.
www.vibram.com
— Chandeliers that flow like waterfalls
from the ceiling, zebra-print armchairs, all
presented in a cathedral of silver and
gold – designer Roberto Cavalli once
again shows off his flamboyant side in
Dubai. Before the region’s best DJs spin
their tunes at night in his club at the
Fairmont Hotel, guests can enjoy Italian
cuisine in the restaurant or Bellini à la
Cavalli at the bar.
www.dubai.cavalliclub.com
4
InDOnESIa
The Damai –
naturally beautiful
— Those who find southern Bali too full
will love “The Damai” in the tranquil north.
Perfectly situated on a range of hills, 14
exclusive villas overlook the magical Lovina Bay
with its lush highland forests. Besides massages
with a sea breeze, trekking, and bike tours,
the Danish hosts also offer cookery courses –
with homegrown organic dragon fruit and snails
from the hotel’s own farm.
www.thedamai.com
Until 3.6.2016, Anish Kapoor & Rembrandt,
Rijksmuseum Amsterdam
Photos: Cour tesy of the MCA / photographer : Limuel Mar tine; Gamma-Rapho via Getty Images; Xavier Popy/REA/laif; Christian O. Bruch/laif;
© Anish Kapoor. All Rights Reser ved, VG Bild-Kunst, Bonn 2016
3
Japan
Photos: Alexa Rainer ; PR (4)
67
ACT L OC A L t ren d
W E R T E 0 3 – 2 015 / 1 6
Gin Is In
The spirit flavored with juniper berries –
traditionally distilled in copper pot stills and r­ efined
many times for other countries and tastes – is
spreading from London to conquer the world.
— Training begins at six o’clock in
the evening; the material for the lesson
is already laid out on the bar between
candles – two bottles of gin from
Portugal. One gin features the unusual
tasting note of seaweed, while the
other is matured in old port barrels.
This event at Charlotte’s restaurant
in London is known as Gin School
and represents a global trend with
local roots.
— Gin producers from all over the
world come to the bar in the district
of Chiswick to acquaint lovers of the
colorless spirit with the various taste
nuances, fully in keeping with the idea
of learning by drinking. A little global
community has gathered for this
purpose on this particular evening:
a Japanese artist, who is sipping on a
gin and tonic on the rocks; a Belgian
businessman, who asks for a classic
Martini, mixer, shaken not stirred;
and a Brit with Indian roots, who is
philosophizing with the Portuguese
importer about the point of seaweed
in the drink, culminating in the assertion
that the gin reminds her of “Sencha tea
on the finish”.
— No other spirit has experienced a
reevaluation of its image in recent years
than gin. The drink that was frowned
upon for a long time as “old school”
in gentlemen’s clubs and at bridge
meetings is now a bestseller from
London to Kuala Lumpur. T
here is
hardly a bar that doesn’t offer several
different gin brands, ideally combined
with just as many different types of
tonic water.
Publisher Christoph Keller and former
Nokia ­manager Alexander Stein by the still at
the ­Monkey 47 distillery in the Black Forest.
— At Charlotte’s there are 30 different
types of gin on the menu, many of
which are of British provenance –
such as Beefeater, once the Queen
Mother’s preferred tipple. The gins are
lined up behind the bar in bulbous, angular, and flacon-like bottles and come
from Japan, Germany, Iceland, France,
Spain, Portugal, and the Netherlands.
Anyone wishing to order must first
answer the questions “Which gin do
you prefer?” and “Which tonic would
you like?” It is a similar scenario when
you want to order a classic, whether
a fizz, gimlet, or sling. There’s a particular gin for every cocktail. Y
ou can criticize it or celebrate it as an expression
Photos: Monkey47; Andrea Ar tz/laif (2); Sipsmith
1
2
(1) Mixology in London.
(2) Gin students have to guess the
fine flavors.
(3) Jared Brown, Sam Galsworthy,
and Fairfax Hall are the founders
of the London distillery Sipsmith.
of a new drinking culture: Those who
drink gin wish to enjoy it with all their
senses.
— All fine gins have one thing in
common: T
hey are produced in
microdistilleries using the same process.
It involves obtaining alcohol from grain
or molasses. The famous gin flavor is
created by adding botanicals, among
them primarily juniper berries. Other
ingredients may include ginger, coriander, nutmeg, orange peel, Caville Blanc
apple pips, rose petals, or rosemary –
there are around 120 different flavors
and ingredients in total. After being
distilled again, the gin is brought to
drinking strength by adding water – it
should ultimately contain at least 37.5
percent alcohol by volume, but the
figure is generally between 40 and 47
percent and in exceptional cases it can
even be as much as 50 percent. During
the distilling process itself, time is taken
to give the flavors in the c­ opper pot
stills sufficient space to develop.
3
70
NEW DISTILLERIES
IN Great Britain
2010–2014
274.8
MILLION LITERS
GLOBAL GIN SALES
69
THINK G LOB A L t he w orl d i s a vi l lage
W E R T E 0 3 – 2 015 / 1 6
1
— A few blocks away from Charlotte’s
bar in the west London district of
Chiswick, one such copper pot still
sparkles in an old garage. Sam Gals­
worthy and Fairfax Hall, the founders of
the Sipsmith microdistillery, affectionately call it Prudence, because that is
the main virtue they consider to be
essential for production. W
hen they
fired up ­Prudence for the first time in
2009, they made history: Nobody had
dared to open a traditional distillery
in London in almost 200 years. Six years
after Sipsmith was founded, the company is one of the country’s leading
suppliers.
— The success of small distilleries like
Sipsmith has fueled the boom and led
to huge growth in recent years. More
than 70 distilleries opened in Great
Britain between 2010 and 2014; the
number of British gin brands has more
than doubled to 73. The export rate has
grown by 37 percent. Every year 140
million bottles are exported from the
UK to the European mainland alone.
Gin sales were further boosted in
March 2015 when Chancellor George
Osborne cut the export tax on spirits
by two percent.
— “Microdistilleries are also benefiting
from the current retro trend and
consumers’ desire for more authenticity,” says Sipsmith manager Felix von
Hurter. Another aspect is the desire for
greater transparency in the production
process. “An increasing number of
customers want to know where the gin
comes from and what is in it.” There is
also a growing need among customers
to find out how it is made. Sipsmith has
responded to this demand by throwing
open the doors to its distillery so that
visitors can drop by for a drink at any
time. Manufacturers such as Beefeater
(Pernod Ricard) – which sold around
30 million bottles in more than 120
countries last year, but lacks the charm
and backyard appeal of Sipsmith – are
reacting to market demands in other
ways. The distillery founded in 1876 has
opened a museum that promises to provide an insight into the dark past of the
juniper-flavored drink.
— Soldiers who had fought in the
Eighty Y
ears’ War brought geneva back
to their homeland in the 17th century,
70
literally placing parts of London under
the influence of alcohol and contributing
to bankruptcy and moral decline. One
picture in the Beefeater Museum is
particularly evocative of the situation.
The oversized and admonitory
copperplate engraving Gin Lane by
William Hogarth hangs on a wall and
documents the havoc the drink once
caused: A prostitute takes a pinch of
snuff while her child falls down the stairwell of the gin cellar below. A hairdresser hangs himself, because people can no
longer afford his services. A mother
pours gin down her baby’s throat. At
the time, London’s upper classes
preferred to drink cognac, which was
mild and expensive after having been
matured in barrels for years. Only after
the Gin Act had been passed – a tax
hike that drove up the price of the
drink – did the government once again
get a handle on the situation in 1750.
— Closely associated with the history
of Britannia – and gin – is tonic water. It
was once part of the kit of the colonial
army. T
he higher quinine content in
the tonic at the time provided good
protection against malaria, but you had
to drink a lot of tonic to achieve the
desired effect. The bitter taste was
offset by the sweeter gin – and the
world’s most famous long drink was
born. The gin was also washed down
with the daily ration of lemon juice
prescribed to the navy to ward off
scurvy. Even today this remains the basic
recipe for gin fizz, gin sling, and gimlet.
— In recent years the popularity of the
long drink known as gin and tonic has
continued to rise in Europe, the USA,
and Asia. Gin expert Geraldine Coates
estimates that 80 percent of all the gin
consumed in the world is enjoyed with
tonic. The biggest sales markets for gin
are the Philippines and the USA, as
reported in “The Economist.” The large
number of new brands is also a sign of
how global the trend is, says Coates.
One gin from the Iberian Peninsula that
is taking the markets by storm is Gin
Mare, which is flavored with Spanish
olives, Greek thyme, Italian basil, and
Turkish rosemary. Monkey 47 was
recently voted one of the best gins in
the world, and it comes from a region
that has hitherto been more famous for
its cuckoo clocks – the Black Forest.
TipS AnD EVEnTS
7.14.16
Bosphorus cross continental
ISTANBUL, TURKEY
— Swimming from Asia to Europe – thousands of daring
individuals have been showing how it’s done for 26 years
in the Bosphorus Cross Continental Competition. With
the motto “Sports for Everyone” they swim the 6.5-kilometer stretch from Kanlica on the Asian side to the
European shore in Kurucesme. Pippa Middleton, sister of
the Duchess of Cambridge, is also among the bathers.
http://bogazici.olimpiyat.org.tr
2
(1) William Hogarth records the situation in London’s Gin Lane in this famous
copperplate engraving from 1751.
(2) British colonial troops in Africa drink
tonic to protect them from malaria.
(3) The Yeoman Warders were the inspiration for world-famous Beefeater gin.
(4) The market leader for tonic is
Schweppes, founded in Geneva in 1783.
3
4.1– 5.15.16
fashion Steps out orchard
SINGAPORE
— Orchard Road is Singapore’s most famous street
and leads to the residence of the president. For
six weeks it is given over to the fashion world with
exhibitions, shows, and styling and makeup workshops.
The highlight of “Fashion Steps Out Orchard” is the
world’s longest catwalk: In one night 170 models then
showcase what regional labels have created.
www.orchardroad.org
6.1 –
6.5.16
les Voiles d’Antibes
4
ANTIBES, FRANCE
— Only a few yachts can call themselves “majesties of the seas” – but all
those that enter this famous regatta
are worthy of the title. Whether the
venerable Willow Wren from 1886 or
the Cambria built in 1928, on the Côte
d’Azur they really do give it their all.
www.voilesdantibes.com
Photos: mauritius images (2); TopFoto / Keystone; PR
Photos: PR (2); imago/Xinhua
DATES
6.12.2016
EScApE from
AlcATrAz TriAThlon
San Francisco, USA
5.5 – 5.8.2016
friEzE nEW YorK
New York, USA
6.24 – 8.28.2016
94 Th opErA fESTiVAl
Verona, Italy
71
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Contemporary Wealth Management – our service in Europe, the Middle East
and Africa (EMEA). We are where our clients need us. Our Wealth Management
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publisher:
Deutsche Bank AG
Deutsche Bank Wealth Management
Mainzer Landstrasse 11-17,
60329 Frankfurt, Germany
www.deutschewealth.com
www.werte.com
chief editor deutsche bank
wealth management:
Michaela Luhmann-Utsch
(responsible for content)
project management:
Reimar Salzmann
editorial team: Liza Ding,
Daniel Funk, Giorgio Gaino,
Jonathan Haddon, Kate Makuen,
Kristin Kulik-Peters
publishing house:
Behnken & Prinz GmbH & Co. KG
Hohe Bleichen 24,
20354 Hamburg, Germany
www.behnkenprinz.com
chief editors:
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managing editor:
Joellen Perry
art director:
Alexandra Engelhard
layout: Anna Moritzen
photo editors: Nadine Yun,
Gwendolyn Heinzmann
contributors:
Sébastien Agnetti, Andrea Artz,
Thomas Byczkowski, Thekla Ehling,
Sarah Elsing, Andreas Feßer, Gene
Glover, Helene Laube, Jelka Lerche,
Philipp Mattheis, Cristina Prinz,
Petra Reski, Lisa Rokahr, Daniela
Schröder
translations: Lektornet GmbH
Willy-Brandt-Strasse 51,
20457 Hamburg, Germany
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Life! Verlag GmbH & Co. KG
Gasstrasse 18, 22761 Hamburg,
Germany
reproduction: Einsatz Creative
Production, Pinnasberg 47,
20359 Hamburg, Germany
print: optimal media GmbH
Glienholzweg 7, 17207 Roebel,
Germany
Deutsche Bank Wealth Management offers wealth management solutions for wealthy individuals, their families and select institutions worldwide. Deutsche Bank Wealth Management, through Deutsche Bank
AG, its affiliated companies and its officers and employees (collectively “Deutsche Bank”) are communicating this document in good faith and on the following basis.
This document is a financial promotion and is for general purposes only and consequently may not be complete or accurate for your specific purposes. It does not constitute an offer, recommendation or
solicitation to conclude a transaction and should not be treated as giving investment advice. It has been prepared without consideration of the investment needs, objectives or financial circumstance of any
investor. Before making an investment decision, investors need to consider, with or without the assistance of an investment adviser, whether the investments and strategies described or provided by Deutsche
Bank, are appropriate, in light of their particular investment needs, objectives and financial circumstances.
The information and material in this document reflects the views and opinions of the authors contributing to the presentation and does not necessarily reflect the views and opinions of Deutsche Bank
(Switzerland) Ltd, unless specifically indicated. Although information in this document has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness, and
it should not be relied upon as such. All opinions and estimates herein, including forecast returns, reflect our judgment on the date of this presentation and are subject to change without notice and involve
a number of assumptions which may not prove valid.
This document and the information contained herein are provided by Deutsche Bank, and may only be distributed or published in states where this is permitted in accordance with appropriate local legislation
and regulation. This document may only be reproduced, passed on to third parties, and distributed with the express permission of Deutsche Bank AG. Deutsche Bank AG is authorised under German Banking Law by the competent authorities BaFin – Federal Financial Supervisory Authority and ECB – European Central Bank. Deutsche Bank (Switzerland) Ltd is authorised under the Swiss Banking Act by the
FINMA – Swiss Financial Market Supervisory Authority FINMA.
© 2016 Deutsche Bank AG
b ogn er.com
Our Deutsche Bank
Wealth Management Teams
in EMEA
Contemporary Wealth Management – our service in Europe, the Middle East
and Africa (EMEA). We are where our clients need us. Our Wealth Management
business of the region is managed out of Switzerland.
Our unique personal service is available where – and when – you need it.
This is where you can find us.
swItzerlaNd
Israel
saudI arabIa
Rue du Rhône 14
1211 Geneva 1
Tel.: +41 (0)22 739 0111
46 Rothschild Boulevard
21st Floor
66883 Tel Aviv
Tel.: +972 3 710-2028
King Fahad Road
Al Olaya District
Faisaliah Tower – 17th Floor
11372 Riyadh
Tel.: +966 11 273 9700
Via Soave 5
6900 Lugano
Tel.: +41 (0)91 910 3838
Prime Tower
Hardstrasse 201
8005 Zurich
Tel.: +41 (0)58 111 0 111
austrIa
Stock im Eisen Platz 3
1010 Vienna
Tel.: +43 1518 660
FINlaNd
Unioninkatu 20–22
00130 Helsinki
Tel.: +358(40) 357 7747
FraNce
23–25 Avenue Franklin
Roosevelt
75008 Paris
Tel.: +33(0) 144 959 393
Italy
Via Filippo Turati, 25/27
20121 Milan
Tel.: +39 02 40241
luxembourg
2, Boulevard Konrad Adenauer
1115 Luxembourg
Tel.: +352 421221
the NetherlaNds
De Entrée 99–197
1101 HE Amsterdam
Tel.: +31 20 555 4319
Norway
Fridtjof Nansens Plass 6
0160 Oslo
Tel.: +46 (8)4635-500 or
+47 22836610
russIaN
FederatIoN
Sadovnicheskaya Street 82
Building 2
115035 Moscow
Tel.: +7 (495) 797 5000
south aFrIca
3 Exchange Square
87 Maude Street
2196 Sandton-Johannesburg
Tel.: +27(11)775 7000
spaIN
Paseo de la Castellana, 18, 4ª
28046 Madrid
Tel.: +34 91 335 57 49
swedeN
Stureplan 4A
11435 Stockholm
Tel.: +46 8 463 55 34
uNIted arab
emIrates
Gate Village, Building 5,
5th Floor
Dubai UAE
P.O. Box 504902
Tel.: +971 (4)428-3833
uNIted KINgdom
Visiting Address:
105/108 Old Broad St
EC2N 1EN London
Tel.: +44 (0)207 54 58000
masthead
publisher:
Deutsche Bank AG
Deutsche Bank Wealth Management
Mainzer Landstrasse 11-17,
60329 Frankfurt, Germany
www.deutschewealth.com
www.werte.com
chief editor deutsche bank
wealth management:
Michaela Luhmann-Utsch
(responsible for content)
project management:
Reimar Salzmann
editorial team: Liza Ding,
Daniel Funk, Giorgio Gaino,
Jonathan Haddon, Kate Makuen,
Kristin Kulik-Peters
publishing house:
Behnken & Prinz GmbH & Co. KG
Hohe Bleichen 24,
20354 Hamburg, Germany
www.behnkenprinz.com
chief editors:
Wolfgang Behnken, Leonard Prinz
managing editor:
Joellen Perry
art director:
Alexandra Engelhard
layout: Anna Moritzen
photo editors: Nadine Yun,
Gwendolyn Heinzmann
contributors:
Sébastien Agnetti, Andrea Artz,
Thomas Byczkowski, Thekla Ehling,
Sarah Elsing, Andreas Feßer, Gene
Glover, Helene Laube, Jelka Lerche,
Philipp Mattheis, Cristina Prinz,
Petra Reski, Lisa Rokahr, Daniela
Schröder
translations: Lektornet GmbH
Willy-Brandt-Strasse 51,
20457 Hamburg, Germany
marketing and advertising:
Life! Verlag GmbH & Co. KG
Gasstrasse 18, 22761 Hamburg,
Germany
reproduction: Einsatz Creative
Production, Pinnasberg 47,
20359 Hamburg, Germany
print: optimal media GmbH
Glienholzweg 7, 17207 Roebel,
Germany
Deutsche Bank Wealth Management offers wealth management solutions for wealthy individuals, their families and select institutions worldwide. Deutsche Bank Wealth Management, through Deutsche Bank
AG, its affiliated companies and its officers and employees (collectively “Deutsche Bank”) are communicating this document in good faith and on the following basis.
This document is a financial promotion and is for general purposes only and consequently may not be complete or accurate for your specific purposes. It does not constitute an offer, recommendation or
solicitation to conclude a transaction and should not be treated as giving investment advice. It has been prepared without consideration of the investment needs, objectives or financial circumstance of any
investor. Before making an investment decision, investors need to consider, with or without the assistance of an investment adviser, whether the investments and strategies described or provided by Deutsche
Bank, are appropriate, in light of their particular investment needs, objectives and financial circumstances.
The information and material in this document reflects the views and opinions of the authors contributing to the presentation and does not necessarily reflect the views and opinions of Deutsche Bank
(Switzerland) Ltd, unless specifically indicated. Although information in this document has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness, and
it should not be relied upon as such. All opinions and estimates herein, including forecast returns, reflect our judgment on the date of this presentation and are subject to change without notice and involve
a number of assumptions which may not prove valid.
This document and the information contained herein are provided by Deutsche Bank, and may only be distributed or published in states where this is permitted in accordance with appropriate local legislation
and regulation. This document may only be reproduced, passed on to third parties, and distributed with the express permission of Deutsche Bank AG. Deutsche Bank AG is authorised under German Banking Law by the competent authorities BaFin – Federal Financial Supervisory Authority and ECB – European Central Bank. Deutsche Bank (Switzerland) Ltd is authorised under the Swiss Banking Act by the
FINMA – Swiss Financial Market Supervisory Authority FINMA.
© 2016 Deutsche Bank AG