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SOCIETE GENERALE PRIVATE BANKING HAMBROS
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A DIFFERENT HEDGE FUNDS
HEDGE FUNDS IGNACE
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DIFFERENT
OUR REGIONAL
ENVIRONMENT
A
TIME
OF
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VAN DOORSEL
AERE
ENVIRONMENT
A TIME OF RENEWAL
VAN DOORSEL AERE
EXPANSION
CEO, VAN DE VELDE
C EO, VA N D E V EL D E
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ANDY
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A RENOVATED
Welcome
to theEUROPE
Spring issue
AN ORGANISATION
of La Lettre.
The transformation of private banks is gaining pace under the impulse of regulatory
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we have
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platform by recruiting over 30% more private bankers, wealth planners and
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we
In March weadvisors.
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beginning
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2014,
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United
in the UK and the Channel Islands. Subject to regulatory approvals, Kleinwort Benson
Kingdom
(the acquisition
of Kleinwort
Benson’s
private
banking
activities
are
will
be acquired
and eventually
combined
with Societe
Generale
Private
Banking
Legal Representative
Frédéric Oudéa,
Chief Executive Officer
Publication manager
Nicolas Cagi Nicolau
Head of Commercial and Marketing
Societe Generale Private Banking
Design
Studio Graphique Societe Generale
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Discover the digital version
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your computer,
Discover
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digital
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smartphone
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for your computer,
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privatebanking.societegenerale.com/hambros
privatebanking.societegenerale.com
underway,(SGPB
subject
to regulatory
approvals,
as banking
this document
goes
to UK
print).
Hambros
Hambros),
the Group’s
private
business
in the
and
Channel
Islands,
to visible
create one
of modernisation
the leading private
banks
in and
the UK
Our growth
is also
in the
of our
tools
themarket.
renovation
This acquisition
bring together
two of the
most recognised
names
of
our premises:will
in London
and Geneva,
for instance,
the design
of in
ourprivate
new
banking,
with
shared
values
and
a
shared
heritage
in
the
UK
and
Channel
Islands
offices demonstrates our desire to be faithful to our heritage as well as
established
through their deep-rooted history here. It will enable us to leverage
resolutely forward-looking.
on the expertise and strengths of the teams from each business to better serve
our clients through the creation of a distinctive industry leader in wealth
We
are extending this growth momentum to Central Europe and North Africa
management.
by setting up innovative partnerships with Societe Generale group’s
Our
growth is network.
also visible
thethus
modernisation
of our
toolsbanking
and theservices
renovation
international
Weinare
able to offer
private
in
of our premises: in London and Geneva, for instance, the design of our new offices
the Czech Republic, Croatia and Morocco. Similar initiatives are being
demonstrates our desire to be faithful to our heritage as well as being resolutely
considered in a number of other countries, which should lead to new openings
forward-looking.
in the next few years.
We are extending this growth momentum to Central Europe and North Africa by
setting up innovative partnerships with Societe Generale group’s international
Few private banks can boast such a comprehensive and integrated European
network. We are thus able to offer private banking services in the Czech Republic,
organisation. At a time of banking union, Societe Generale Private Banking,
Croatia and Morocco. Similar initiatives are being considered in a number of other
with its renovated platform, offers the best of two worlds: the strength
countries, which should lead to new openings in the next few years.
of Societe Generale group and the foothold of a local bank.
Few private banks have such a comprehensive and integrated European organisation.
At a time of banking union, Societe Generale Private Banking, with its renovated
platform, offers the best of two worlds: the strength of Societe Generale group and
the foothold of a local bank.
ERIC BARNETT
CHIEF
EXECUTIVE OFFICER
JEAN-FRANÇOIS
MAZAUD
SOCIETE
PRIVATE BANKING
HAMBROS
HEAD OF GENERALE
SOCIETE GENERALE
PRIVATE BANKING
S PR I NG /S U M M ER 2016 I N °9 I L A LE T TR E I 01
ECONOMIC OUTLOOK I OIL
© DR
© ZHU DIFENG – FOTOLIA
OIL
XAVIER DENIS
S T R AT E G I S T
Not so long ago, the prospect of
reaching “peak oil” - a production level
beyond which the volume of oil produced
would decline irretrievably – justified an
increasing trend in the price of oil, or at
least explained why it would remain at
high levels. Some analysts even
mentioned the possibility that a barrel of
oil would reach 200 USD. This will not
happen: the oil glut seems to open the
way to durably cheap oil.
A BALANCE MODIFIED BY NEW SOURCES OF SUPPLY
Supply shock
OPEC’s 2 reduced weight
After the shale gas revolution, since 2010 the United States
has been through the shale oil revolution. Since this date,
US production has jumped from 5 million1 barrels a day to
more than 9 million, thanks to the drilling of
non-conventional oil fields. These new fields now represent
55% of US oil production and drastically reduce the need
for imports. Imports have thus decreased since 2010 from
nearly 10 billion barrels a day to slightly more than
7 million1, a dramatically reduced outlet for the global oil
supply. Furthermore, US congress has just repealed a
40-year-old law that prohibited the export of crude oil.
The impact of this measure on the world market balance is
nevertheless marginal.
In addition to the United States, other non-OPEC countries
such as Russia and Canada have increased their
production during the past years, bringing OPEC’s relative
weight down to one third of global crude oil production,
and, with it, its capacity to influence prices. Furthermore,
the organisation’s member countries have been finding it
difficult these last few years to align their interests,
reducing OPEC’s strength. Certain countries are more or
less dependent on oil to finance their public expenditure.
Venezuela, for instance, is on the verge of bankruptcy while
Saudi Arabia still has substantial financial reserves.
1 Source: Bloomberg, US Department of Energy 2 The 12 OPEC member countries are: Saudi Arabia, Iran, Iraq, Kuwait, Venezuela, Qatar, Libya, United Arab Emirates, Algeria,
Nigeria, Angola and Ecuador. 3 Source: Bloomberg, IMF.
02 I L A LE T TR E I N °9 I S PR I NG /S U M M ER 2016
A DIFFERENT
ENVIRONMENT
Oil-consumption is still increasing
Global demand for oil is nevertheless still increasing, unlike
the fall observed in 2008-2009 during the great recession.
With prices remaining low and an anticipated increase in
company defaults now that hedges are maturing, the
supply of shale oil should progressively fall. In 2016 oil
production in non-OPEC countries should decline. These
changes should lead to a gradual increase in prices, the
magnitude of which is difficult to predict.
OVERALL FAVOURABLE IMPACTS ON THE GLOBAL
ECONOMY
EXCESS SUPPLY
Eviction strategy
When shale oil came to the market, Saudi Arabia started
a price war. The country traditionally tries to balance the
world market by increasing its production when prices
move upwards and reducing production when they go
down. This strategy worked as the price of a barrel of Brent
remained between 100 and 120 USD from 2011 to 2014.
When US producers started to have a downward impact
on prices, Saudi Arabia gave up the production quotas
defined by OPEC. Its goal is now simple: to evict US
producers, whose production costs are around 50 to
60 USD per barrel, while the costs of a Saudi barrel are
less than 15 to 25 USD per barrel.
Today’s weak prices essentially reflect an excess in supply,
which, according to the International Energy Agency,
is above 1 million barrels a day, as demonstrated
by the rise in crude oil stocks in the US. There are other
factors weighing on prices, such as increasing short
positions in the futures market, and lower growth in
demand from emerging countries, a consequence of their
slowing growth rates.
Generally speaking, lower prices have a positive impact on
global activity through a transfer of wealth between
producing countries and importing countries. Oil acts as a
tax in favour of producers and against consumers.
Households’ purchasing power and company margins
both benefit from lower prices. Nevertheless, this positive
effect on growth was smaller than anticipated in 2015. On
the one hand households, particularly in the United States,
increased their savings and therefore did not direct all the
money saved towards consumption. On the other hand,
lower inflation has not triggered a further decrease in
interest rates, which are already at rock-bottom levels.
Lower prices should nevertheless bear fruit in 2016.
Lower prices relieved the public budgets of many importing
emerging countries and reduced their current deficits. In
these countries households and companies are usually
significantly subsidised by artificially low energy prices.
Lower prices allow governments to remove these subsidies
and to channel the public expenditure towards more
productive areas such as investment.
Lower oil prices nevertheless have negative impacts on
exporting countries. Russia experienced a wide-ranging
recession in 2015 and activity could continue contracting in
2016. Public budgets are going through rough times,
forcing some countries to use their foreign exchange
reserves to maintain their living standards. Saudi Arabia’s
reserves have lost 100 billion dollars since mid-20143.
The US bond market was also impacted by lower oil
prices. Risk premiums on the energy sector’s bond debt
with high yield ratings jumped to record levels and
contaminated other segments of the market. This creates a
higher cost of finance that acts as a brake on investment
and therefore on activity. The favourable impact on
consumption is, nevertheless, undeniably the strongest ■
Past performance is not a guide to future performance
S PR I NG /S U M M ER 2016 I N °9 I L A LE T TR E I 03
EXPERTISE I ALTERNATIVE INVESTMENT
HEDGE FUNDS
A TIME OF RENEWAL
industr y (including hedge funds)
has experienced meteoric
1949, the year the American
company A.W. Jones & Co.
was created. Today the industr y
© DR
growth since its beginnings in
© DR
© ROMOLO TAVANI – FOTOLIA
The alternative investment
ALAN MUDIE
ÉRIC VERLEYEN
HEAD OF INVESTMENT
S T R AT E G Y
GLOBAL CHIEF
INVESTMENT OFFICER
manages 2.7 trillion dollars1
through 6,000 funds.
RECENT DISAPPOINTING PERFORMANCE
L
ong reserved for rich Anglo-Saxon investors,
the industry has been through two significant
transformations and is now embarking on a new
change. To begin with, a certain popularisation of
hedge funds occurred when funds of funds appeared;
institutional investors then became the main investors
in hedge funds in order to diversify their portfolios.
The third transformation is linked to changes in the European
Union’s regulatory framework for asset management. Many
vehicles are now available in formats that satisfy AIFM or
UCITS regulations2. This transformation guarantees that
demanding compliance and risk management specifications
are met and also increases transparency in terms of the
strategies pursued.
The hedge fund industry’s success can be largely explained
by its objective, which is to achieve positive returns
irrespective of the performance of the underlying financial
markets, thanks to sophisticated investment management
techniques such as the short selling of securities.
These vehicles, sometimes called “absolute return funds”,
have a number of different strategies and seek to identify
pockets of opportunity across all asset classes, whether it be
in anticipation of a rise or a fall.
In spite of these ambitious goals, the performance of
alternative managers has turned out to be somewhat
disappointing over the last few years when compared to the
period before the financial crisis and the Great Recession
(2007-2009). Between 1999 and 2008 the annual average
performance of the Hedge Fund Research index was 6.3%3.
Since 2009 it has fallen to 3.2%4, a significantly lower level
than the performance generated by traditional asset
classes. What are the reasons for these disappointing
returns?
Dispersion and correlation
For some time assets have been strongly correlated,
making life more difficult for managers who adopt “Global
Macro” strategies that try to anticipate the movements in
different markets. If correlations between positions are
strong, the benefits in terms of diversification are lower,
and, once again, the losses linked to falling positions
reduce the gains made on rising positions. For managers
who adopt long/short strategies that combine long
positions with short selling, yields tend to drop when the
dispersion between stocks is weak. This unstable pattern
has also created problems for managers who adopt
“trend following” strategies, where positions are taken
based on recent market trends. Just when a trend was
beginning to appear and the manager had taken
a position, the trend started to reverse, forcing the
manager to cut the positions.
Sources: 1 BarclayHedge database, third quarter 2015 – 2 AIFM: Alternative Investment Funds Managers, UCITS: Undertakings for Collective Investment in Transferable Securities –
3 Hedge Fund Research – 4 and 5 Bloomberg – 6 Societe Generale Private Banking, Bloomberg
04 I L A LE T TR E I N °9 I S PR I NG /S U M M ER 2016
Lower volatility
The volatility of Gross Domestic Product (GDP) growth
rates has declined and the same is true of financial
markets. In the United States, for instance, the S&P 500
index has only been through two corrections of more than
10%5 since the European crisis in mid-2011. This has a
negative impact on strategies that benefit from volatility,
such as “Global Macro” strategies.
Financial Repression
With lending rates close to zero since the crisis, central
banks have started to use their balance sheets to
accumulate large volumes of sovereign bonds, thus
depressing yields. Investors are therefore driven to seek
higher and riskier yields which also fall, until yields,
whatever their maturity or quality, all converge towards
zero. For investors establishing relative value strategies
on bonds, potential yields have deteriorated.
Zero-rate policy
It is often forgotten that interest rates can be an important
source of yields for hedge funds. When a fund short sells
a security, it receives the proceeds of the sale, which are
then invested in low-risk bonds until the security is bought
back. The fall in yields has therefore had a negative
impact on the remuneration of these investments, as
shown in the chart.
TOWARDS BETTER PROSPECTS
The normalisation of US rates should ease financial
repression and stimulate volatility. The conjunction of an
increase in interest rates, lower correlations and greater
dispersion should lead to better yields for hedge funds.
GLOBAL HEDGE FUND PERFORMANCE 6
35%
Trailing 12m performance
Average performance
25%
Average real performance (vs Citi 3M USD)
7,0%
15%
2,0%
5%
-5%
3,2%
1,7%
-15%
-25%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
We believe these funds are an asset class in their own right,
where performance is largely independent of how classic
investments are evolving. Our discretionary management has
thus recently integrated a structural allocation to these
strategies in the mandates entrusted to us by our clients.
In order to control the associated risks, it is essential to have
a good fund selection team. Not only is the investment
universe very wide, but the performance of these funds is also
very dispersed. Investing in an index is therefore not a
satisfactory solution and it is essential to be able to identify
managers with strong convictions and highly developed
investment processes.
Societe Generale Private Banking offers its clients vehicles
with diversified underlying assets and strategies in order to
optimise the risk/return ratio, benefiting at the same time from
great transparency with regard to the strategies implemented
by the selected managers ■
Investing in hedge funds might in certain regions be subject to eligibility criteria and reserved for certain types of investors.
S PR I NG /S U M M ER 2016 I N °9 I L A LE T TR E I 05
PORTRAIT I ENTREPRENEUR
IGNACE VAN DOORSEL AERE
STRATEGIC
THINKING:
A COMPASS
FOR SUCCESS
Ignace Van Doorselaere is one of the architects of the impressive success
of Interbrew (AB InBev), the Louvain Brewer, and of the listed lingerie
group Van de Velde. Below is a portrait of a passionate entrepreneur who
is driven by hard work and a very client focused mind.
I
gnace Van Doorselaere says his
“career” started at seven years
old when, each weekend, he
helped his parents in the family
butcher shop. There was no choice
and it was hard work but there were
some benefits. “Because I gave the
change, at school I was good at
mental arithmetic and I also
developed a client-focused mind.
I knew nevertheless very clearly
that I would never take over the
family business: I wanted to
discover the world.”
© STEFAN MARTENS
GOING INTO BUSINESS
IGNACE
VAN DOORSEL AERE
CEO
VAN DE VELDE
06 I L A LE T TR E I N °9 I S PR I NG /S U M M ER 2016
At twenty Ignace Van Doorselaere
decided he would work until forty and
then teach and share his experience
with young people. With a taste for
languages and good commercial
judgement he chose the business
world. He graduated in Management
from KU Leuven (Belgium) and then
went to Wharton Business School
(USA) for an MBA, specialising in
entrepreneurship and finance.
“This experience boosted my
confidence. I also learnt that in life or
work you must make strategic choices
using a synthetic vision of a complex
reality. When you implement your
strategy, this vision must be used
more like a compass than a rigid plan.”
When he returned, Ignace joined the
Boston Consulting Group in Paris. “It
turned out that consulting wasn’t for
me. I liked the strategic thinking but I
also wanted to implement the strategy
myself.” This opportunity would be
given to him by one of his corporate
clients: Interbrew from Louvain.
THE WORLD’S LOCAL BREWER
When the brewer decided to set up a
Mergers & Acquisitions department,
few people understood this decision.
“In the new department I was the first
and… only member of staff.”
This is when The World’s Local
stylists in the shop. Through the
brands, the improvement of its
distribution system and innovation, the
Lingerie Styling concept built, and
continues to build the significance of
the Van de Velde group.”
© ROBERT PRZYBYSZ – FOTOLIA
WHAT FUTURE
AFTER LINGERIE?
Brewer concept appeared, though
without the exact name. “How do you
make money with beer? To succeed
you must excel in each one of the
business segments covered.
This means you must have
the strongest brand in the most
relevant segments and sell all the
other ones.”
With the question “What is the
consumer’s favourite brand?”
Interbrew became what it is today,
a giant brewer. The first decisive
transaction was the purchase of
the Canadian company Labatt.
Van Doorselaere became a member
of the Executive Committee and ran
the business in the Netherlands and
then in Western Europe.
FROM INTERBREW
TO THE VAN DE VELDE GROUP
After twelve years in the beer
business, Ignace was approached in
2003 by Van de Velde, the lingerie
group. The Board of Directors gave
him a mandate to run the company
with Herman Van de Velde for five
years. The adventure finally lasted
more than 12 years…
These two sectors are closer than
one would think. “They both have
similar dynamics. There is a similarity
between the independent managers
of the food and beverage business
and those of lingerie boutiques, the
variety of premium brands, the final
consumers.”
LINGERIE STYLING
While there are many similarities,
Ignace Van Doorselaere started by
conducting a thorough review with the
Board of Directors. “What are the
growth drivers? What will we do? How
will we do it?” The result was the
Lingerie Styling concept based on
two observations: most women are
not satisfied with their physical
appearance and breasts play a major
role in the image a woman has of
herself.
“In marketing terms, we are talking
about a segment willing to spend
more for lingerie that will make them
feel good. We adapted our products,
our services and our distribution
system to this. We considered
our overall approach like a
fitting-room, a flexible constant in the
context of a client environment and
company that are both continuously
changing. A woman must feel good,
and must for instance be able to rely
on professional advice from the
saleswomen and from the lingerie
Between the Interbrew and
Van de Velde periods, Ignace
Van Doorselaere founded his own
company: 4F. Four ‘F’ for ‘Flexible’,
‘Focus’, ‘Fair’ and ‘Fight’,
with Ethical Performance as
a common theme. “At the time
I taught in several schools as I had
promised myself I would do. I also
invested in young companies and
created the One Child One Dream
fund to offer the non-profit sector
resources to conduct targeted and
efficient work.”
Ignace Van Doorselaere will continue
this work when he steps down
as Van de Velde’s CEO at the end of
the year. As a shareholder, whether
alone or with others, his approach
will always be the same: an
autonomous and independent
entrepreneur, just like his parents in
their butcher shop a long time ago ■
VAN DE VELDE
With its mission, “Shaping the
bodies and minds of women”,
Van de Velde NV is a key player
in the women’s lingerie and
luxury bathing suit markets.
The company is present in
Europe, North America, and more
recently in China.
It is focused on developing strong
and complementary brands
(PrimaDonna, Marie Jo et Andres
Sarda) and optimal service in
shops with its Lingerie Styling
programme. Van de Velde works
with 5,000 specialised shops
and owns its own shops under
the Rigby & Peller, Lincherie and
Private Shop brands.
S PR I N G /S U M M ER 20 16 I N °9 I L A LE T TR E I 07
PRIVATE BANKING I UK REGIONAL PRESENCE
OUR REGIONAL
© ANDREW HOLT – GETTY
NOW AND
Over 15 years ago, when Societe Generale acquired
Hambros Bank, established in London in 1839, we had
private bankers based outside of the city. In 2006 we decided
that it was time to establish permanent regional offices.
S
GPB Hambros’ first regional
office was established in
Cambridge in 2006. Our
main objective was to look after our
clients better and to enhance the
relationship with the business
community and their advisors.
It has been rewarding to be part of
the local community delivering
international private banking
services to our clients in the local
area. This we believe differentiates
SGPB Hambros from other wealth
managers and is central to building
long-term relationships with our
clients.
We now have offices in Cambridge,
Newbury, Leeds, and in Edinburgh
in Scotland. These are all areas of
strong economic growth and
significant wealth creation.
08 I L A LE T TR E I N °9 I S PR I NG /S U M M ER 2016
THE START OF OUR REGIONAL
EXPANSION
TEN YEARS LATER,
THE TREND CONTINUES
We undertook regional research in
conjunction with a wealth
management consultancy,
Datamonitor, in 2006 to ascertain
both the demand for private banking
services and where wealth creation
had been taking place over recent
years. Not surprisingly, the South
East did well in this survey based on
income, property values and wealth
creation through enterprise.
The recession has also influenced the
way some behave in relation to
business and financial matters. Even
politics has changed in response to
the crisis. The government has
focused on giving regions a greater
say in how they generate growth and
therefore wealth. This increasing
political devolution to the regions is
evidence of the growing recognition
of the importance of regional wealth.
This growth story, however, was not
confined to the South East. In the last
20 years, there has been a
tremendous burst of activity that has
transformed many UK cities from their
traditional reliance on manufacturing
or heavy industry towards a more
diversified, service orientated
economy.
Last year, we carried out a new
survey. Over the past ten years,
some of the UK regions have largely
contributed to wealth generation and
entrepreneurship, and we know from
our clients that these skills are not
isolated to the capital. Entrepreneurs
all over the UK are building
businesses, creating jobs and
generating the growth we need to
see our economy prosper.
E X PA N S I O N
THEN
For instance, Leeds is the driving force behind Yorkshire
and will play a central role in the success of the Northern
Powerhouse concept over the coming years. These
clients need the same service as our London based
clients, it is as simple as that.
Cambridge with its rich tradition of education and
innovation and its proximity to London was always going
to provide an excellent location for an office of SGPB
Hambros. Ever since we opened our doors in 2006, we
have been supporting clients locally and across East
Anglia with our blend of service and expertise.
Newbury, the home of Vodafone and mobile
telecommunications, services the Fast Track economic
zone of the Thames Valley. It is positioned on the cross
roads connecting Oxford, Southampton, Bristol and
Reading. Connectivity is the key in the region and with
Crossrail the region will benefit from fast two way traffic
from the capital. Many of our clients choose to live in the
region and commute either to the capital or
internationally.
The Edinburgh office was established in 2008 as the first
SGPB Hambros office in Scotland. The Scottish
economy boasts a wide range of economic activities
including most notably tourism, whisky, oil and gas,
financial services and technology. The economy and the
international interest in Scotland have given rise to a
huge level of wealth which requires a broad range of
financial advice and services. Accordingly, the office
serves a diverse range of clients across the whole of
Scotland.
We recognise that not all clients want to have a
relationship with a London banker. By having a physical
presence on the ground, we are able not only to cement
existing relationships, but also offer broader networking
opportunities amongst the business community which is
as important now in this era of social networking as ever.
Local real estate knowledge assists our clients, certainly
when offering credit solutions. The regional bankers are
also increasingly working with the international teams in
London to provide local knowledge for international
clients seeking to invest in property outside London.
We have been growing our local teams steadily and they
work closely with our specialist teams who travel
regularly to see them and their clients.
A key priority for the regional teams is to facilitate local
access to the specialist investment management, wealth
structuring and credit teams available within the wider
Societe Generale Private Banking network. We have
created a joined-up approach which means that
wherever clients are based, they will receive the same
level of service, and this was highlighted as a true benefit
at our client arenas that were held in 2015 ■
Should you wish to contact any of our UK regional
offices, please use the following email addresses:
[email protected]
[email protected]
[email protected]
[email protected]
S PR I NG /S U M M ER 2016 I N °9 I L A LE T TR E I 09
SERVICES I PRIVILEGE PRIVATE BANKING
PRIVILEGE
© TETRA IMAGES – GETTY
STARTING
YOUR JOURNEY
SGPB Hambros is recognised
for providing innovative products
and solutions as well as a
personalised client ser vice
to Entrepreneurs and their
companies, High Net Wor th
individuals (HNWIs), Ultra
High Net Wor th individuals
(UHNWIs), foundations,
associations and family
of fices. We have, therefore,
taken the oppor tunity to make
our private banking ser vice
available to a wider range of
clients by of fering “Privilege”.
ENTRY POINT TO OUR PRIVATE BANKING SERVICES
In 2013, SGPB established “Privilege”, to provide private
banking services to clients who want an enhanced banking
facility, which is focused on client service. Privilege is the
entry point for our private banking offering and is suitable
for professionals, retirees, entrepreneurs and executives
looking for a dedicated service. Privilege is serviced by
over 200 relationship managers across eight jurisdictions:
United Kingdom, France, Channel Islands, Gibraltar,
Monaco, Luxembourg, Switzerland and Belgium.
We are the only private bank to offer a dedicated service at
this level1. Clients are provided with a dedicated
relationship manager supported by a range of experts in
investment management, wealth planning, advisory, credit
(including mortgages), fiduciary trade execution and
banking services.
At SGPB Hambros, we pride ourselves on being able to
offer clients the best of both worlds: a personal approach
to private banking from dedicated specialists combined
with global resources of one of the world’s largest financial
groups, Societe Generale.
LISTENING AND UNDERSTANDING YOUR NEEDS
We take time to fully understand the vision and ambitions
of our clients and the critical stages in the development of
their financial goals. Wealth planning is an evolving cycle
and involves more than making individual decisions about
savings, mortgages or pensions. By gaining a full
understanding of each client’s needs, we ensure that a
plan is in place which will strive to meet the required
financial objectives. Key to this, will be the dedicated
relationship manager who works with clients to understand
their short-term and long-term banking and investment/
financial needs.
WORKING WITH YOUR PRIVATE BANKER
AND OUR EXPERTS
Successful clients often rely on a variety of advisers to
achieve their investment/financial goals. Not only will
Privilege clients have a dedicated relationship manager but
will also have access to our centers of expertise including
our investment, credit and wealth planning teams. Our
credit specialists can customise secured credit solutions
against various asset types and residential properties; our
investment team offers guidance on a range of managed
solutions and our wealth planners look for holistic
solutions. We also understand that clients need access to
experts who can not only explain the choices available, but
also make them aware of any potential risks involved.
Privilege provides a perfect entry point for clients who want
an award-winning private banking service ■
1 Our Privilege service is available to clients who have: In Monaco, Luxembourg and Belgium €250,000 of investable assets; United Kingdom, Jersey,
Guernsey and Gibraltar £250,000 of investable assets; Switzerland 250,000 CHF of investable assets and France €500,000 of investable assets.
10 I L A LE T TR E I N °9 I S PR I NG /S U M M ER 2016
© HERO IMAGES – GETTY
TESTIMONIES I BANKERS
ALEXIA LETORT
D E S M U R R AY
P R I VAT E
BANKER
SGPB HAMBROS
S E N I O R P R I VAT E
BANKER
SGPB HAMBROS
ONE PRIVATE BANK
T WO GENER ATIONS WORKING ALONGSIDE
We pride ourselves in having experienced and
qualified private bankers but we also nurture the
next generation and support them in acquiring the
skills and confidence to serve clients and build
long-term relationships with them. Des Murray
(based in Jersey) and Alexia Letort (based in
London) are two perfect examples of a seasoned
veteran and a young yet already successful private
banker. We have asked them a few questions:
WHAT MADE YOU CHOOSE THE
CAREER OF A PRIVATE BANKER?
Des Murray: The finance industry in
Jersey was expanding rapidly in the
late 1970’s making it an exciting place.
Banking seemed a natural choice
offering an interesting and varied
profession and so it has proved. In my
first job, I worked in a number of
different areas, finding my niche
dealing directly with clients
Alexia Letort: Following my master’s
degree in Business Law, my curiosity
and my desire to work with people
coming from various horizons oriented
me toward a career in Wealth
Management. Being a Private Banker
gives me the opportunity to work with
clients with different profiles which
makes every situation unique.
WHAT ARE THE THREE
ATTRIBUTES THAT MAKE
A GOOD PRIVATE BANKER?
DM: We have to be an all rounder,
both professionally and personally and
have the ability to listen closely to
clients. It is also important to engage
with clients, remain discrete and gain
trust.
AL: The capacity to listen to clients in
order to understand their needs, goals
and concerns. Be reactive to requests,
solve issues and answer questions
within a reasonable time. Professional
qualifications and knowledge are key
but a good degree of curiosity on
various subjects is important and
helps understanding and interacting
with clients.
WHAT DOES IT TAKE TO CREATE
A SUCCESSFUL RELATIONSHIP
WITH YOUR CLIENT?
DM: Three words: service, service,
service. The key is to put the client first
and always try to find a solution.
AL: Very good communication
through regular contact and a
proactive and open approach to
always find the best appropriate
solution. Empathy, respect and
genuine care help, I believe, to build a
long-term relationship based on trust.
IN YOUR VIEWS, WHAT ARE
THE MOST IMPORTANT CRITERIA
FOR YOUR CLIENT WHEN DEALING
WITH THE BANK?
DM: Our clients look for a bank which
is financially strong, with a good
reputation and image and that offers a
wide range of products and services
with a good track record. Access to
key individuals, such as investment or
wealth planning specialists is also
essential so they feel they are given
the best advice possible.
AL: A strong relationship with their
Private Banker as well as with other
key specialists. They want to be
confident that their Private Banker will
find them the most appropriate
solution. They also look for a strong
bank which offers a wide range of
financial products and services to give
them choice and answer their needs ■
S PR I N G /S U M M ER 20 16 I N ° 9 I L A L E T T R E I 11
TRENDS I MUSIC
A FA N TA ST I C
D I S C OV E R Y
Mécénat Musical
Societe Generale helps
Bibliothèque Nationale de
France (French National Library)
acquire 596-page manuscript
penned by Hector Berlioz.
T
©
he Bibliothèque Nationale de France (BNF)
acquired a handwritten score of the opera
Les Troyens last March, thanks to Mécénat
Musical Société Générale. The manuscript – long
thought to be lost – comprises 596 pages of music
paper in four large notebooks, all handwritten
by French composer Hector Berlioz (1803-1869).
Considered a “national treasure” by the BNF,
the manuscript will help clear up a number of
mysteries surrounding this extraordinary work.
IM
ST
WE
E
AG
–A
RT
DI
GI
L
TA
U
ST
DI
O
KARINE DESHAYES, YANIS BENABDELLAH,
CYRILLE DUBOIS, JEFF COHEN AND THE AEDÈS
ENSEMBLE, LED BY MATTHIEU ROMANO GAVE
A FIRST PERFORMANCE OF THE MANUSCRIPT
ON 29 MARCH 2016. SOCIETE GENERALE PRIVATE
BANKING HELPED ORGANISE THIS REMARKABLE
EVENT, WHICH WAS HELD AT THE BNF.
It’s no secret that Berlioz, composer of Symphonie
Fantastique, had a penchant for grandeur. His Requiem
calls for 500 performers and Les Troyens features no less
than five acts! What’s more, the finale and epilogue were
often cut from Les Troyens by theatre directors – and even
by Berlioz’s own publisher. Now the BNF’s new
manuscript will be instrumental in “reconstructing” the
most complete version possible of Les Troyens.
The manuscript is a piano-and-voice reduction from 1859.
Berlioz mentions it in a letter to his sister: “I have started
transcribing the piano reduction from my orchestral
score… By poring over my piano score and picking it
apart, I’m discovering all sorts of minor flaws that I would
never have detected even with the closest of reading and I am correcting them.” As he composed Les Troyens,
Berlioz polished the orchestral score, made changes to
the libretto and expanded certain scenes.
These corrections are visible in the manuscript and
provide insight into how the work –which underwent
countless revisions – came to be. The great Pauline
Viardot, singer and friend of Berlioz, has even scribbled
her own notes here and there. These precious documents
are available to the public on the Gallica digital library1 ■
1 The BNF’s digital collections
128 II LLAALLEETTTTRREE II N
0
N°°99 II SSPPRRIIN
NG
G//SSU
UM
MM
MEERR 22001166
IMPORTANT DISCLAIMER
Société Générale Private Banking (“SGPB”) is the private banking division of the group Société Générale S.A. operating through subsidiaries or branches or departments of
Société Générale S.A., located in various countries, hereinafter mentioned, acting under the “Société Générale Private Banking” brand, and distributors of the document.
GENERAL WARNING
This marketing document, subject to modifications, is given for purely informative purposes and
does not constitute a contract.
The contents of this document are not intended
to provide investment advice nor any other
investment service, and the document does not
constitute and under no circumstances should it
be considered in whole or in part as an offer, a
solicitation, advice, a personal recommendation
to purchase or subscribe for an investment service and/or product, nor an invitation to invest in
the class of assets mentioned herein from any
Société Générale Private Banking entity. The information indicated in this document shall not be
considered as legal or tax or accounting advice.
Some products, services and patrimonial solutions might not be available in all Société Générale
Private Banking entities. They depend on local
laws and tax regulations and might not be adapted or authorized in certain countries. As well they
have to comply with Société Générale Group Tax
Code of Conduct. Furthermore, accessing some
of these products, services and solutions might
be subject to conditions, amongst which eligibility. Your private banker is available to discuss with
you on these products, services and solutions to
check if they can respond to your needs and are
suitable to your investor profile.
Some investment products/investment services
described in this document might not be authorized in some territories, might involve numerous
risks and may result in a potential loss of the total
invested amount, including a potential unlimited
loss. Accordingly they are reserved only for a
certain category of investors, and/or adapted to
investors who are sophisticated and familiar with
these types of investment products and/or investment services and/or class of assets.
Accordingly, before making an investment decision, as the case may be and according to the
applicable laws, the potential investor will be
questioned by his private banker within the entity
of Société Générale Private Banking where he is
client, as to his eligibility for the envisaged products/investment service, and the compatibility
of the investment with his investment profile and
objectives. He should also consult his own independent financial, legal and tax advisers to obtain
all the financial, legal and tax information which
will allow him to appraise the characteristics and
the risks of the envisaged products/investment
services, as well as his tax treatment, in light of
his own circumstances.
The full understanding and agreement to the related contractual and informative documentation including the documentation relating to the relevant
risks is required from the potential investor prior to
any subscription of products/investment services.
The potential investor has to remember that he
should not base any investment decision and/or
instructions solely on the basis of this document.
Any investment may have tax consequences and
it is important to bear in mind that the Société
Générale Private Banking entities do not provide
any tax advice. A potential investor should seek
independent tax advice (where necessary).
This document is not intended to be distributed
to a person or in a jurisdiction where such distribution would be restricted or illegal. It is the
responsibility of any person in possession of this
document to inform himself of and to observe all
applicable laws and regulations of relevant jurisdictions. This document is in no way intended
to be distributed in or into the United States nor
directly or indirectly for any US person.
The price and value of investments and the income derived from them can go down as well as
up. Changes in inflation, interest rates and the rate
of exchange may have an adverse effect on the
value, price and income of investments issued in
a different currency from the potential investor’s
ones. The simulations and examples included in
this document are provided only for indicative
and illustration purposes. The present information
may change depending on the market fluctuations and the information and views reflected in
this document may change.
The Société Générale Private Banking entities
disclaim any responsibility to update or make any
revisions to this document. The purpose of this
document is to inform investors who shall make
their investment decisions without overly relying on
the document. The Société Générale Private Banking entities do not offer any guarantee, express
or implied, as to the accuracy or exhaustivity of
the information or as to the profitability or performance of class of assets, counties, markets.
This document does not purport to list or summarize all the financial products’ terms and conditions, nor to identify or define all or any of the risks
that would be associated with the purchase or
sale of the investment product(s)/asset class(es)
described herein.
The historical data and information herein, including any quoted expression of opinion, have
been obtained from, or are based upon, external
sources that the Société Générale Private Banking
entities believe to be reliable but have not been independently verified and are not guaranteed as to
their accuracy or completeness. The Société Générale Private Banking entities shall not be liable
for the accuracy, relevance or exhaustiveness of
this information. Past performance is not a guide
to future performance and may not be repeated.
Investment value is not guaranteed and the value
of investments may fluctuate. Estimates of future
performance are based on assumptions that may
not be realised, and should not be deemed an
assurance or guarantee as to the expected results
of investment in such asset class(es).
This document is confidential, intended exclusively
to the person to whom it is given, and may not be
communicated nor notified to any third party (with
the exception of external advisors on the condition
they themselves respect this confidentiality undertaking) and may not be copied in whole or in part,
without the prior written consent of the relevant
Société Générale Private Banking entity.
CONFLICT OF INTEREST
As a general matter, entities within the Société
Générale Group may make a market or act as
a principal trader in securities referred in this
report and can provide banking services to the
companies mentioned in that document, and
to their subsidiary. Entities within the Société
Générale group may from time to time deal in,
profit from trading on, hold on a principal basis,
or act as advisers or brokers or bankers in relation to securities, or derivatives thereof, or asset
class(es) mentioned in this document. Société
Générale may be represented on the board of
such persons, firms or entities. Entities within the
Société Générale group may be represented on
the supervisory board or on the executive board
of such persons, firms or entities.
Employees of the Société Générale group, or
persons/entities connected to them, may from
time to time have position in or hold any of the
investment products/ asset class(es) mentioned
in this document.
Société Générale may acquire (or liquidate) from
time to time positions in the securities and/or
underlying assets (including derivatives thereof)
referred to herein, if any, or in any other asset,
and therefore any return to prospective investor(s)
may directly or indirectly be affected.
Entities within the Sociéte Générale Group are under no obligation to disclose or take into account
this document when advising or dealing with or on
behalf of customers.
Société Générale group maintains and operates
effective organisational and administrative arrangements taking all reasonable steps to identify,
monitor and manage conflicts of interest. To help
the Société Générale Private Banking Entities to
do this, they have put in place a management of
conflicts of interest policy designed to prevent
conflicts of interest giving rise to a material risk
of damage to the interests of SGPB clients. For
further information, SGPB clients can refer to
the management of conflicts of interest’s policy,
which was provided to them by the SGPB entity of
which they are clients.
SPECIFIC WARNINGS PER JURISDICTION
France: Unless otherwise expressly indicated,
this document is issued and distributed by
Société Générale, a French bank authorized and
supervised by the Autorité de Contrôle Prudentiel
et de Résolution, located at 61 rue Taitbout, 75436
Paris Cedex 09 under the prudential supervision of
the European Central Bank- ECB, and registered
at ORIAS as an insurance intermediary under the
number 07 022 493 orias.fr. Société Générale
is a French Société Anonyme with its registered
address at 29 boulevard Haussman, 75009
Paris, with a capital of EUR 1.009.380.011,25 on
31 March 2016 and unique identification number
552 120 222 R.C.S. Paris. Further details are Ordinance No 1.285 of 10/09/2007. Further
available on request or can be found at www. details are available upon request or on www.
privatebanking.societegenerale.fr/.
privatebanking.societegenerale.mc
The Bahamas: This document has been Switzerland: This document has been
distributed in The Bahamas to its private clients communicated in Switzerland by Société
by Société Générale Private Banking (Bahamas) Générale Private Banking (Suisse) S.A., whose
Ltd., an entity duly licensed and regulated by head office is located rue du Rhône 8, Geneva
the Securities Commission of The Bahamas (the 11, Case Postale 5022 CH-1211 Geneva, and
“Securities Commission”). This document is not by Société Générale Private Banking (Luganointended for distribution to persons or entities Svizzera) S.A., whose head office is located
that are Bahamian citizens or that have been Viale Stefano Franscini 22, 6900 Lugano. Both
designated as residents of the Bahamas under companies are banks authorized by the Swiss
the Exchange Control Regulations, 1956 of The Financial Market Supervisory Authority (FINMA).
Bahamas. This document is not intended to be, The collective investment schemes and structured
and under no circumstances, construed as a products referred to in this document can only be
distribution of any securities in The Bahamas. offered in compliance with the Swiss Collective
Neither the Securities Commission nor any similar Investment Schemes Act (CISA). Further details
authority in The Bahamas has reviewed or in any are available on request or can be found at www.
way passed upon this document or the merits of privatebanking.societegenerale.ch
the securities described, or any representations United Kingdom: This document has been
made herein.
distributed in the United Kingdom by SG Hambros
Belgium: This document has been distributed in Bank Limited, whose head office is located at 8
Belgium by Société Générale Private Banking NV, St. James’s Square, London SW1Y 4JU (“SGPB
a Belgian credit institution according to Belgian Hambros”). SGPB Hambros is authorised by the
law and controlled and supervised by the National Prudential Regulation Authority and regulated by
Bank of Belgium (NBB) and the Financial Services the Financial Conduct Authority and the Prudential
and Markets Authority (FSMA) and under the Regulation Authority. The availability of the
prudential supervision of the European Central products or services described in this document
Bank- ECB. Société Générale Private Banking NV in the United Kingdom may be restricted by law.
is registered as an insurance broker at the FSMA Further details are available on request.
under the number 61033A. Société Générale
Private Banking NV has its registered address at Jersey: This document has been distributed in
9000 Ghent, Kortrijksesteenweg 302, registered Jersey by SG Hambros Bank (Channel Islands)
at the RPM Ghent, under the number VAT BE Limited (“SGH CI Limited”), whose registered
0415.835.337. Further details are available on office address is PO Box 78, SG Hambros House,
request or can be found at www.privatebanking. 18 Esplanade, St Helier, Jersey JE4 8PR. This
document has not been authorised or reviewed
societegenerale.be
by the Jersey Financial Services Commission
Dubaï: The present document has been (“JFSC”). SGH CI Limited is authorised by the
distributed by Societe Generale, DIFC Branch. JFSC for the conduct of investment business.
Related financial products or services are only
available to professional clients with liquid assets Guernsey: This document has been distributed
of over $1 million, and who have sufficient financial in or from within the Bailiwick of Guernsey by
experience and understanding to participate SG Hambros Bank (Channel Islands) Limited –
in the relevant financial markets, according to Guernsey Branch, whose principal address in
the Dubai Financial Services Authority (DFSA) Guernsey is PO Box 6, Hambro House, St Julian’s
rules.Societe Generale, DIFC Branch does not Avenue, St Peter Port, Guernsey, GY1 3AE.
offer some products and/or services (such as SG Hambros Bank (Channel Islands) Limited –
Discretionary portfolio management or Managed Guernsey Branch is licensed under the Banking
advisory services or Prime Market Access), Supervision (Bailiwick of Guernsey) Law, 1994,
but the branch’s clients can if necessary have and the Protection of Investors (Bailiwick of
access to these products and/or services at the Guernsey) Law, 1987.
Societe Generale Private Banking entity acting as Gibraltar : This document has been distributed
account holder. Societe Generale is duly licensed in Gibraltar by SG Hambros Bank (Gibraltar)
and regulated by the DFSA. Further details are Limited, whose head office is located at Hambro
available on request or can be found at www. House, 32 Line Wall Road, Gibraltar (“SG
Hambros Gibraltar”). SG Hambros Gibraltar
privatebanking.societegenerale.ae
Luxembourg: This document has been is authorised and regulated by the Gibraltar
distributed in Luxembourg by Societe Generale Financial Services Commission for the conduct
Bank and Trust (“SGBT”), a credit institution which of banking, investment and insurance mediation
is authorized and regulated by the Commission de business. The availability of the products or
Surveillance du Secteur Financier (“CSSF”) under services described in the document in Gibraltar
the prudential supervision of the European Central may be restricted by law. Further details are
Bank- ECB, and whose head office is located at available on request.
11 avenue Emile Reuter – L 2420 Luxembourg.
Further details are available on request or can be Societe Generale Private Banking Hambros is part
found at www.sgbt.lu. No investment decision of the wealth management arm of the Societe Gewhatsoever may result from solely reading this nerale Group, Societe Generale Private Banking.
document. SGBT accepts no responsibility for the Societe Generale is a French bank authorized in
accuracy or otherwise of information contained France by the Autorité de Contrôle Prudentiel et
in this document. SGBT accepts no liability or de Résolution, located at 61, rue Taitbout, 75436
otherwise in respect of actions taken by recipients Paris Cedex 09, and under the prudential supervion the basis of this document only and SGBT sion of the European Central Bank - ECB. It is also
does not hold itself out as providing any advice, authorized by the Prudential Regulation Authority
particularly in relation to investment services. The and regulated by the Financial Conduct Authority
opinions, views and forecasts expressed in this and the Prudential Regulation Authority. Further
document (including any attachments thereto) information on the SGPB Hambros Group inclureflect the personal views of the author(s) and ding additional legal and regulatory details can be
do not reflect the views of any other person or found on www.privatebanking.societegenerale.
SGBT unless otherwise mentioned. SGBT has com/hambros
neither verified nor independently analyzed the
information contained in this document. The Notice to U.S. Investors: This document is not inCommission de Surveillance du Secteur Financier tended for U.S. Persons under the U.S. Securities
has neither verified nor independently analyzed Act of 1933, as amended and under the various
the information contained in this document.
laws of the States of the United States of America.
Monaco: The present document is distributed
in Monaco by Societe Generale Private Banking http://www.privatebanking.societegenerale.com.
(Monaco) S.A.M., located 13, 15 Bd des
Moulins, 98000 Monaco, Principality of Monaco, © Copyright the Societe Generale Group 2016.
governed by the ‘Autorité de Contrôle Prudentiel All rights reserved. Any unauthorized use, dupliet de Résolution’ and the ‘Commission de cation, redistribution or disclosure in whole or in
Contrôle des Activités Financières’. The financial part is prohibited without the prior consent of SG.
products marketed in Monaco can be reserved The key symbols, Societe Generale, Societe Gefor qualified investors in accordance with the nerale Private Banking are registered trademarks
RIN
G / S U M MofESG.
R 2All
0 1rights
6 I Nreserved.
° 9 I L A L E T T R E I 13
Law No. 1339 of 07/09/2007S Pand
Sovereign
SG HAMBROS BANK LIMITED
8 ST JAMES’S SQUARE
LONDON
SW1Y 4JU
WWW.PRIVATEBANKING.SOCIETEGENERALE.COM/HAMBROS
SOCIETE GENERALE
FRENCH LIMITED COMPANY WITH A CAPITAL STOCK
OF EUR 1,009,380,011.25 AS OF 30 MARCH 2016
PARIS TRADE REGISTER
N° 552 120 222
REGISTERED OFFICE
29 BOULEVARD HAUSSMANN 75009 PARIS
REF: 713124 – DESIGN STUDIO SOCIETE GENERALE
CA449/MAR/2016
SOCIETE GENERALE PRIVATE BANKING HAMBROS