FAMILY OFFICE INVESTOR n.1 by Investor Media Monaco Sarl

FAMILY OFFICE INVESTOR

ISSUE 1

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UNDER THE HIGH PATRONAGE OF HIS SERENE HIGHNESS PRINCE ALBERT II OF MONACO

House of Fine Yachting 27 > 30 SEPTEMBER 2017

MONACOYACHTSHOW.COM

OFFICIAL SPONSOR

CONTENTS

CONTENTS 6

FAMILY OFFICE INVESTOR

Monaco Land of Entrepeneurs - Monaco Economic Board

The View from the Banking Specialists BNP Paribas

Interview with Patrick Coote, Head of NAUTIQ Family Office

Monaco Yacht Summit 2017

Innovation in Motion -Piaggio Aerospace

The Business Aviation & Superyacht Community - BASYCS

UHNWI’S Covering their Assets for Doomsday - Bargate Murray

Top Tips for New Philantrophists Cavendish Family Ofice

The World as A Classroom - Emma Swanson 32

Clockwise from bottom left: © Baim Hanif; MC-Clic; AdobeStock; Jeremy Bishop; William Bossen

The Prince Albert II of Monaco Foundation

Editorial Director: Servanne Sohier, servanne@investor-media.com, +44 (0)7779 577 614 Director: Xavier Calloc’h, xavier@investor-media.com, +44 (0)7770 917 239 Art Director: Annemiek van Luinen, annemiek@bloom-graphics.com, www.bloom-graphics.com Contributors: Nino Cirone, Mark Burgess, Adam Ramlugon, Mark Needham, Juliet Cockram Agnew, Mark Escort, Emma Swanson Investor Media Ltd: 93 Elgar Avenue, Surbiton, KT5 9JS, www.investor-media.com Print: www.cp-uk.co.uk Distribution: Renzi Communication Sarl, CH-Genève, +41.79.689.04.65, raphael@renzicom.com

Family Office & UHNWI

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MONACO ECONOMIC BOARD

MONACO LAND OF ENTREPRENEURS

Family Office Investor

Monaco’s allure is easy to explain: an outstanding political and economic stability, glamour, a favourable climate, a rich cultural heritage, privacy and excellent transport links. While tax is often cited as one of the reasons to move and live in Monaco, its other advantages play actually a major role: people want to move to and set up their company in Monaco for multiple reasons such as security, quality of life and the energy driving its economy and financial community. Famous for its F1 Grand Prix and casinos, the Principality of Monaco is far less well known from a business angle. People can work as efficiently in Monaco as they can from London, Frankfurt or Paris. Monaco’s heliport is just six minutes away from Nice airport - the second busiest hub

for business aviation. The Country has undertaken a radical overhaul, modernisation and development of its economy Increasingly it has established itself as a business centre in the heart of Europe. GDP is €5.64 billion with growth of 5.4%. GDP per capita at €69,000 is one of the highest in the world. GDP per employee is €109,000. On a territory covering just 2km2, Monaco boasts a highly skilled workforce with 52,000 jobs and 5,000 companies operating in added-value non-polluting sectors. Its economy is balanced and diversified thanks to the vision of a succession of Princes of Monaco. It is a key factor in Principality prosperity and enables to deal better with crises. For example, finance and insurance represents 16.8% of GDP; scientific & technical activities, administrative and support services (corporate) 14.9%; construction 12.7%; hospitality and retail 12.5%; international trade 9.6%; real estate 8.7%; administration, education, health and social welfare 7.2%; industry 4.9%; personal services 4.7%; information communication (mainly ICT) 4.4%; and finally transport/storage 3.5%. Yachting is also an important and growing sector in Monaco. With more than 300 companies, 1

555 employees, it represents nearly 5% of GDP of Monaco and is the 4th industry in the Principality. Monaco is also a must for the enthusiasts of the yachting sector, an intriguing fact - out of the 100 largest owners of the world 24 are members of the Yacht Club of Monaco. Monaco’s model is sustainable due in part to the fact it is a debt-free economy with reserve funds equal to four years of state expenditure (two in liquid assets) and a balanced budget (€1 billion) of which 30% on average has been invested in infrastructure and amenities over the last 50 years. Monaco also enjoys unrivalled political stability (seven centuries), but also social and fiscal (which is not to say there is no tax – indirect rather than direct taxation is the favoured route. VAT at 20% represents 50% of state revenue). The balance between a free-market economy and the social welfare is unique. With regards to fiscal transparency and cooperation, Monaco has a structure in place to combat money laundering and terrorism financing unanimously recognised by international bodies like GAFI. Monaco has also been included in the OCDE “white list” that abide by international tax law since 2009. Major projects (for example, the sea extension) comply with environmental restrictions to meet the growing needs of residents and investors. More generally, the Government policy promotes renewable energy and sustainable mobility, the goal being to cut emissions by 50% by 2030 and be carbon neutral by 2050. Monaco has an international business environment where 140 nationalities comprise an extensive and accessible business network that is very accessible. Being situated in the heart of the Mediterranean basin and part of the Euro Zone, Monaco is a gateway to Africa, and has international influence abroad through an extensive diplomatic and consular corps. The quality of life is unique and it is not just about the mild climate and strategic location between sea and mountains. Monaco is also a multi-cultural place where 37,000 inhabitants from 140 nationalities live in harmony who enjoy a maximum level of security (1 policeman per 70 residents and a highly effective CCTV system), excellent health care and education systems, and a packed cultural and social calendar of international events (700 a year). And finally, 25% of the country is dedicated to green spaces and 30% of electricity is green - ecology is second nature.

MONACO ECONOMIC BOARD

Monaco has a remarkably cosmopolitan and dynamic economy and the work of the Monaco Economic Board (MEB) is key to the Principality’s constant development and continued success.

The MEB is a quite young organisation that was set up in 1999 to promote Monaco as an international business hub, with a dynamic and diversified economy. The entity is supported by Monaco’s Government. Its board integrates is composed of nearly all key economics actors of Monaco but also by its nearly 500 company members - membership is on a voluntary basis. Moreover, the MEB has been Monaco’s National Committee to the ICC since 2001 (ICC MONACO). MEB’s priorities consist in developing Monaco’s entrepreneurial base and being proactive in making its networks operate effectively for all those involved. Contribution to the local economy as the Government’s operational arm, the MEB is in permanent contact with people in business. It is well briefed and acutely aware of their concerns and therefore well able to respond, often working with local authorities, public and private. The MEB intention is to build and strengthen Monaco’s working relationships with companies and financial institutions at home and abroad. Its missions are to attract new businesses, new entrepreneurs to bring their economic expertise and spheres and set up business activities within the Principality of Monaco and to support the development of Monaco companies on a local and international levels. Contact & Information: www.meb.fr info@meb.mc +377 97 98 68 68

MEB quarterly Member’s Networking Cocktail at the Monaco Yacht Club

Family Office Investor

ÂŠ Mammad Rahimov

*B to B meetings between Monegasque and Azerbaijani companies during 2016 trade mission to Baku

BNP PARIBAS

TRENDS IN THE FAMILY OFFICES SPACE:

THE VIEW FROM THE BANKING SPECIALISTS Emile Salawi, Head of Family Office Coverage at BNP Paribas Wealth Management and Frédéric Fève, Senior Family Office Coverage Banker at BNP Paribas Wealth Management give their vision on Family Offices.

The number of family offices globally has increased significantly over the past decade from approximately 4,000 to more than 10,000 according to Wealth-X. But what exactly do those family offices do? How are they organised? What are the main investment topics they are interested in? What kind of risks are they facing? What type of partner are they looking for?

Family Offices structure

With the world global wealth reaching new highs every year, the richest with net worth above USD 150M often structure themselves as a family office, either dedicated to managing their own wealth (single family office) or pooled with other net worth individuals (multi-family office). At the core, smaller family offices usually emerge from the need to oversee the different non investment needs of an Ultra High Net Worth Family. Lifestyle management, Children Education, Transition Planning, Wealth Planning are hence often part of the initial key functions covered. At the same time, for investment aspects, the initial steps can often be to aggregate and efficiently report on the overall family investments and wealth. At a next stage of development or wealth level, a family office may build up its investment capability by not only overseeing and aggregating assets but by managing them efficiently. This may usually

Family Office Investor

start by building allocation capability for the family into external investment solutions and services. Finally for the most structured family offices, an increasing part of their chosen allocation buckets can be fully managed in-house. However some families will prefer to outsource their personal life management outside their family office structure and chose to solely focus on investment management. Family offices come in very different forms. But among this diversity one can still observe some general organisational shapes. These go along with the general patterns of what family offices aim to provide to their owners. Initial structures can encompass a CEO or CFO together with Private Assistant/Lifestyle Management. As structures grow, a CIO will join the team. Depending on the level of entities involved the Operational side will need to start being beefed up. Finally, the most developed entities will further have dedicated teams to invest and deal with the operation of each internally managed strategy or asset class, thereon adding portfolio manager, research and operational teams. The goal of most family offices being the asset protection and wealth preservation of the family through the generations, they usually deploy a lot of efforts keeping current on all structural subjects that may challenge the wealth of their

beneficial owners. This may include tax and legal changes, credit, counterparty and operational risks. The structure of the family wealth, including particularly succession and generational transfers are usually core subjects together with the capability and strength of their counterparts and business partners in order to mitigate those risks.

Diversified investments

The flexibility of these offices is supported by the still very present entrepreneurial spirit that often played a key part in the wealth creation of their beneficial owners. This spirit is even so more present when the family members play an active part in their family office and can hence convey to the team their positive experience in being entrepreneurial and probably taking some risks. Due to the often dual objectives of maintaining a wealth preservation portfolio (to sustain the ongoing family cost of life) and wealth creation to build for the next generations, it is quite common to have mostly a liquid allocation very conservative while in the less liquid allocation long term holdings in mix of real estate and private equity investments are held. The largest family offices (those managing assets in excess of $800M) allocate 20%+ to private equity and close to 15% to real estate, hence replicating the asset allocation of the world’s most successful endowments. Direct deals and private equity funds have attracted nearly $15bn from

family offices in 2016 according to Campden Research. For instance as returns for Family offices were at historical lows in 2015 and 2016, only those allocating a significant part of their assets to alternative investments managed to reach double digit figures. This includes private equity and real estate which illiquidity premium and longer term investment horizon proved beneficial to generate higher returns. Besides the hefty returns provided by those asset classes, families appreciate the control and transparency they get on their investments. However sourcing the right deal or the right manager isn’t that easy as the market tends to be quite crowded and there’s a lot of “dry powder”. BNP Paribas thanks to its expertise, strong network and global footprint has been a pioneer in getting its largest clients access to some of the best private equity managers and most sought after direct deals globally, be it real estate or corporate transactions.

Risk Management is high up on investors’ agenda

Risks faced by Family Offices are numerous, we divide them in 3 categories: 1) Counterparty risk: mitigating this risk is Family Offices’ top priority. Solutions include inter alia limited exposure to any given counterparty, synthetic exposure through total return swaps, T-bills, physical gold and segregated accounts. In some ways negative interest rates are a natural answer to counterparty risk as they force investors to diversify. 2) Operational risk: as transactions become more complex and regulation even more stringent, operating costs have substantially increased for Family Offices representing 76bps of their assets under management according to Campden Research.

3) Cybersecurity: Family Offices are extremely vulnerable to cybercriminality and underestimate this risk. According to Family Office Exchange they spent on average $500k on IT including data protecting from cybercriminality and are expected to double that amount in the next five years.

Quest for trusted partner

Family Offices get solicited from all parts, most deploy money in investments they understand. Being small structures, they rely on few trusted partners to source and execute deals: lawyers, corporate finance boutiques, private equity houses and banks are the usual providers of ideas and intelligence. Over the years, another source of deal flow has taken more and more importance, that is networking clubs and circles dedicated to ultra high net worth individuals where they can mingle with their peers and seek an alignment of interest in select transactions. BNP Paribas has been a pioneer in establishing a proprietary secured platform dedicated to its 300 largest clients. Branded “The Leaders’ Connection”, this invitation-only application enables its members to network with their peers in other parts of the globe, share ideas, interact together and find coinvestors.

As regards more liquid strategies, a number of Family Offices have been rethinking their allocation to hedge funds in the past few years due to the overall challenging performance, the realisation that the 2 and 20 model probably should not apply to some strategies particularly in an interest rate environment that that does

not sustain this level anymore. As family offices resize their operations to focus mainly on direct deals, they delegate more and more the liquid part of their portfolios to external managers or private banks who offer tailor-made solutions dedicated to these investors. As an example we at BNP Paribas have established 3 years ago a team of specialized portfolio managers dedicated to managing family offices and smaller institutional investors money with tailor-made portfolios from $20M onwards.

NAUTIQ

NAUTIQ THE SUPERYACHT FAMILY OFFICE

An interview with Patrick Coote, Head of Nautiq Family Office by Servanne Sohier, Editorial Director of Family Office Investor.

Family Office Investor

Monaco may be the world’s second-smallest country but it is often referred to as the “Capital of Yachting”. The Principality even has an official Government initiative to promote and reinforce this message across the globe. It’s a bold claim to make but if you take a short walk around Port Hercule in the summer sun you can definitely see why it’s entirely appropriate as a tagline for this exclusive micro-state. Escaping the August heat, I sat down in the plush surroundings of the Monaco Yacht Club with Patrick Coote, the newly-appointed head of NAUTIQ, to find out more about this unique and highly specialised family office. You’ve recently joined NAUTIQ, can you start by telling me a bit about your own background? Sure, I’ve been involved with luxury yachts for pretty much all of my working life, I’ve even been called a “yacht fanatic” in the past. That’s probably a fair accusation given that my university dissertation was a study of The Effects of EU Taxation Policies on the Mediterranean Charter Market! I started off with a brokerage company in Antibes and then worked for the British

Marine Industries Federation before joining Boat International in London. After moving to Monaco in 2006 I became a Director of Fraser Yachts and subsequently took on a wider role within the Azimut Benetti Group with responsibilities covering Fraser Yachts, The Crew Network and Lusben Refit Yards as well all the Group’s service companies including marinas, yacht finance, interior design and concierge services. In 2013 I was approached by Star Capital, the private equity group in London that had recently acquired the Blohm+Voss shipyard and was appointed Managing Director in Monaco. We concluded a sale of the business to Lürssen Werft at the end of 2016 and I took a short break before joining NAUTIQ in July this year. Your move to a family office sounds like a classic case of “poacher turned game-keeper”. Ha, yes maybe. Your words not mine, but that’s certainly one way of putting it. NAUTIQ was originally established over ten years ago as a single family office for the Principal who’s a passionate and highly-experienced yacht owner. He’d become somewhat dis-illusioned with the service and the advice he was receiving through the traditional channels and so NAUTIQ was set up to oversee all of his marine-related assets. Bringing everything “in-house” raised the operation to a new level with much greater market insight and more informed decision-making resulting in better investment decisions and tighter cost control. Having

previously worked on “the other side” as you put it, we all use our inside knowledge of the industry and personal networks to benefit our clients. So yes, in that respect, not just me but our entire team can draw on every aspect of their former employment across different sectors and utilise that knowledge to give our clients a distinct advantage. So can you also support other private offices that might need assistance with similar corporate services? Yes, in certain circumstances where there is a good fit we’re very happy to consider taking on additional projects. Family offices, especially in Monaco, will typically manage one or possibly even two yachts on behalf of their Principals but they very rarely have enough yacht-specific work to justify a fulltime, in-house team. We’re regularly approached by people seeking assistance with charter bookings, yacht sales, operations management and new build projects. Our team has grown significantly over time so we now have in-house specialists covering all these areas and as long as it feels right for us, we are always happy to try and help. So in those cases you’re effectively working as an extension of another private office. Exactly. Most times we tend to be in direct contact with the client but when we work in support of other structures they can certainly benefit by tapping into our network, insight and know-how whilst also maintaining control at the same time as achieving significant savings and of-course ensuring absolute discretion for their clients. We’re really focused exclusively on yachting assets although in a few individual cases this has led on to the purchase of a helicopter, some waterside realestate and even two private jets. The great benefit though is that there’s no conflict with anyone handling any kind of wealth planning or wealth management, tax planning, family governance, trust or corporate services etc.

As NAUTIQ has evolved into more of a multifamily office, I presume you’ve had to adapt the way you’re funded. Can you tell me more about your fee structure? Of course. Trust is the single most important foundation stone of our organisation. Not just trust in our professionalism or the ability to deliver, but trust that costs will be controlled and returns will be maximised. We therefore operate with a fully transparent, fee-based model. One of the founding Principal’s primary motivating factors was to do things differently and ignore the status quo in the yacht industry regarding fees and commissions. So our team is all salaried and we simply charge flat fees or project fees directly related to the work undertaken, just like any other professional services organisation. Having said that, some clients prefer a reduced rate with an additional success fee on conclusion of a charter, sale or purchase

“Trust is the single most important foundation stone of our organisation.”

NAUTIQ

Yachts displayed, all built by Blohm+Voss: Eco 73m (this image)

Graceful 82m (bottom left) Palladium 94m (bottom right)

contract and others even choose to work on a commission basis. Basically, everything is tailored and customised in line with each client’s preferred way of working.

other activities can produce far better results. The importance of great marketing programmes shouldn’t be under-estimated. Having this under our direct control allows us to be more innovative and more pro-active and ultimately creates “standout” for our clients’ yachts among the hundreds that are out there for sale and charter.

You previously mentioned that you also handle the marketing of yachts for sale and charter. That’s gotta be pretty unique for a family office!

You don’t handle wealth management in the classic sense but I know you’ve got some interesting investment projects going on. Can you reveal more about these?

Unusual maybe, but definitely an essential service. Traditional yacht marketing tends to be very formulaic and standardised. I’m really passionate about good marketing and it certainly shouldn’t be about re-using the same templates and communication tools every time; it needs to be customised, innovative, dynamic, eyecatching and highly targeted but most of all effective at producing results. So we prefer to handle this ourselves and over the years we’ve built up close relationships with a network of world-class marketing and advertising specialists. Where appropriate, we’ve also got full access to all the basic marketing channels and global listing systems that brokers use but we’ve found that

Well in one sense of-course we have several hundred million Euros of “floating assets” under our management (excuse the pun) but like I said before, we’re yacht specialists and prefer to stick to what we know best, so all of the investments we work on are yacht or marine-related. The nature of our business requires absolute confidentiality and discretion so I’m not able to disclose very much at all I’m afraid but over the last 12 months, aside from several large new-build contracts that we’ve negotiated, we also put together investment plans for a large marina development. Our close contact with yacht owners also means we come across some very interesting off-market deals which never get into the public domain. Some of these opportunities can be really attractive to refit and sell on at a profit. We can obviously bring such buyers and sellers together directly with no middlemen. Our team has also recently compiled the business case for a large charter vessel for which we developed the design and technical

“The great benefit though is that there’s no conflict with anyone handling any kind of wealth planning or wealth management, tax planning, family governance,

Family Office Investor

©Bugsy Gedlek

trust or corporate services etc.”

specification, sourced the finance, shortlisted the shipyards and will be project managing the build.

“There’s never a dull day in this business.” That sounds really interesting and if I may say so, pretty complex to piece together. That’s what we’re here for! Yes it can be complex sometimes but at least there’s never a dull day in this business. I’ve spent a lifetime working with very high net worth clients and large yachts and whilst it me may be demanding it’s also rewarding and I love what I do. You know, many superyacht owners are simply looking for a trusted advisor who can offer a discreet and professional service. In that sense, it’s not complicated at all. For further information about NAUTIQ, please visit: www.nautiq.com

www.colibri.mc

FOR ECOFRIENDLY YACHTING

BEST PRACTICES

MONACO YACHT SUMMIT 2017

MADE FOR THE NEW SUPERYACHT CHARTERERS AND OWNERS

Whether you are a serial charterer or you are planning to purchase your very first yacht, the experience of enjoying a luxury yacht remains unique. Choosing your vessel requires many aspects to consider. This September 26, the Monaco Yacht Summit welcomes new potential superyacht clients – or their representatives – who will be given the tools to easily understand the charter or purchase decision-making process during the following four days of the Monaco Yacht Show.

table-talks (workshops) to sweep out the many daunting issues to consider when chartering or acquiring a yacht. The 2017 Monaco Yacht Summit will thus discuss the current issues about Charter, Purchase, Crew, Design, Management in superyachting.

In a casual ambiance to enable an effortless flow of dialogue, 11 distinguished experts from the yachting industry will share their personal experience and unbiased insights via independent

Whilst the 2016 Monaco Yacht Summit highlighted all tangible and pragmatic information for a first-time charterer or buyer of a superyacht, the 2017 edition will delve a deeper into critical

questions facing first time buyers and charters. This addition to the programme will provide the 2016 participants with the opportunity to return to the Summit to learn more alongside of the 2017 participants. 5 Table-talks. 11 experts. Organised by the Monaco Yacht Show, the 2017 Monaco Yacht Summit will be led a selection of industry leaders that will present personal insights about the fascinating world of superyachts.

MONACO YACHT SUMMIT 2017

Crew John Cook is a yacht crew employment expert. With vast knowledge about crew social security, he was part of the Large Yacht Sub-group formed by the MCA to implement MLC for yachts. As a certified trainer of MLC inspector, John regularly runs MLC training sessions on yachts and for yacht industry companies. Charles DuGas-Standish began his yachting career as a Water Safety Law Enforcement Officer and worked his way up from deckhand to professional Superyacht Captain. He holds a BS Degree in Marine Transportation from Texas A&M Maritime College and is Master on board a successful 70m charter yacht with 19 crew. Gaëlle Tallarida, Managing Director of Monaco Yacht Show S.A.M speaking at the 2016Monaco Yacht Summit.

Monaco provides the ultimate showcase for industry influencers from the most reputable superyacht builders, award winning yacht designers, luxury suppliers, influential brokerage houses to the most sought-after tenders and water toys, prestige cars, helicopter and private jet manufacturers

Family Office Investor

Charter Freddy Desplanques is a qualified lawyer with over ten years’ experience in advising on customs and excise matters. His areas of expertise include advising on the customs and VAT implications of

using large yachts in EU waters, whether privately or commercially. He has maintained excellent working relationships with French Customs Officers in the Mediterranean. Sophia Tutino has a Master’s degree in Business from Lyon. She has a decade of experience in yachting in both charter retail and charter management. She later joined a successful private jet start up as Sales Director and is now engaged by a private family office to promote their luxury developments in the South of France and in London. Sophia has a wealth of knowledge in luxury services. Purchase Ken Judge OAM, is an Australian mergers & acquisitions and securities lawyer and long-time resident of Monaco. Ken is also a keen yachtsman having completed five America’s Cup campaigns including as a crew member of “Australia II”, winner of the 1983 America’s Cup for which he was awarded an Order of Australia Medal. Robb Maass heads his law firm’s Admiralty Department, which specializes in marine transactions. He and the other lawyers in his Department represent a broad spectrum of the marine industry, including yacht owners, crew, manufacturers, dealers, brokers, and vendors. Anouch Sedef is a Superyacht Lawyer who advises yacht owners and their representatives. Based in Geneva, Anouch advises on very large and award-winning construction projects and handles all legal matters pertaining new build, sale and purchase, crew matters, registration, operations, disputes and resolution. Management Xavier Lamadrid’s experience as a Yacht Manager and expertise in private banking, family offices, aviation and tax enables him to focus and match the needs of owners from with yacht industry offerings. Xavier has developed an ownership plan for large private vessels and a unique yacht storage business. Jonathan Watson is a superyacht lawyer with particular expertise in high-value, complex transactions with some of the largest superyachts in the world. He is well known for his ability to analyse structures and contract issues and for bringing deals to a swift completion. Jonathan participates at British Marine (Superyacht UK) ABYA and MYBA events. Design Stefano Pastrovich is a Naval Architect whose life is dedicated to looking forward, to anticipate the future and to make it real. Stefano creates new vessels with the aim to reflect today’s and tomorrow’s lifestyle. He is considered a “visionary” for both the aesthetic, the architecture, the construction and the business model. Laura Pomponi is a Yacht Interior Designer with a Degree in Engineering. Laura’s passion for colour, shapes, art and architecture was nurtured at an early age by her grandmother who was a fashion designer. She likes the intricate process of the construction. For Laura, it’s like a DNA spiral, and she loves solving complex issues. With an affinity for art and design,

material research and sourcing unique objects, Laura founded her own company in Ancona in 2008. Experience superyachting at the Monaco Yacht Show Following the Monaco Yacht Summit, night falls and finds 400 guests - top managers of yachting companies and private clients – who will be invited to the opening ceremony of the 27th Monaco Yacht Show. This Inaugural Gala Party features the Show’s 4th Superyacht Award Ceremony. These two events organized on the eve of the MYS are part of a premium visit program exclusively designed for buyers or charterers of superyachts: the Sapphire Experience. Launched in 2014, the Sapphire Experience’s concierge service assists guests with Monaco logistics advice such as transportation and accommodation. Exclusive visits on board the exhibiting superyachts in Port Hercules can also be organized in coordination with the corresponding brokers and shipyards. Exclusively dedicated to owners, potential future owners and their representatives, this VIP social program confirms the Monaco Yacht Show’s declared desire and ambition to promote the superyachting industry to potential new clients –

those seeking information on a sector still largely unfamiliar – and invite them to meet the exhibitors on the docks of Port Hercules the following day. From September 27, 2017, the Monaco Yacht Show will curate the exhibition of 125+ extraordinary giant vessels built by the world’s most respected shipyards. The yachting industry will turn its focus exclusively to the MYS where 45 new launches will be unveiled in a worldwide debut. Although these 125 superyachts are the biggest attraction to the Show, the 580 exhibitors and partners that participate in the growing success of the MYS are amongst the world leading superyacht companies. Monaco provides the ultimate showcase for industry influencers from the most reputable superyacht builders, award winning yacht designers, luxury suppliers, influential brokerage houses to the most sought-after tenders and water toys, prestige cars, helicopter and private jet manufacturers. The MYS is the premiere luxury event worldwide where visitors can discover the greatest aspects of superyachting against the glamorous backdrop of Monaco. MONACO YACHT SUMMIT 2017 If you are interested in either the first-time purchase or charter of a yacht and are new to

the yachting industry, you are welcome to apply for your participation by emailing concierge@ monacoyachtshow.mc. If you wish to appoint your personal assistant or family office representative to attend on your behalf, please advise concierge@monacoyachtshow.mc. The Monaco Yacht Summit is an event by Monaco Yacht Show SAM. 26 September 2017. Le Méridien Beach Plaza Hotel, Monaco Free-of-charge program exclusively reserved for qualified and identified delegates. Participation upon approval. Monaco Yacht Show 27th edition 27 > 30 September 2017 Port Hercules, Monaco www.monacoyachtshow.com #mys2017 | @mys_monaco Facebook/monacoyachtshow Instagram: monacoyachtshow_official

PIAGGIO

PIAGGIO AEROSPACE

Â© All images Courtesy of Piaggio Aerospace

INNOVATION IN MOTION

Family Office Investor

Writer Nino Cirone explores the history and accomplishments of Piaggio Aerospace, one of the pioneers in aviation and a continuing leader in the field. There are many remarkable facets about Piaggio Aerospace that are commonly known – that it’s a world leader in turboprop aircraft design, that it has strong manufacturing capability and that it has an on-going commitment to advanced technology and research – but perhaps what is most remarkable about Piaggio Aerospace is what is not commonly known about the company. For instance, it is not commonly known that Piaggio has been helping to transport people for over a hundred years, and that it has done so in almost every form of motorised transportation system devised. It has built ship furnishings, railway carriages, trams, cars, trucks, motorcycles, scooters, manned and unmanned aircraft and even funicular railway. In the last 130 years, if someone needed to move people or cargo from A to B, then there has been a vehicle or aircraft with a Piaggio badge affixed to it that could get the job done. It builds its own line of turboprop aircraft, breaking the mould with the Avanti EVO, a sleek and efficient executive transport that will always turn heads on the tarmac, as well as manufacturing jet, turbo shaft and turboprop engines for civil and military aircraft and helicopters. Furthermore, it also manufactures spare parts and performs maintenance, repair and overhaul operations on the engines it builds. To do this it works in conjunction with some of the biggest aero-engine

manufactures: Rolls-Royce and Honeywell, Pratt & Whitney, Pratt & Whitney Canada and Safran Helicopter Engines.

of radial engines and variable pitch propellers. Piaggio even sought to design and build the world’s first helicopter.

All this started with an ambitious 20 year Italian – Rinaldo Piaggio. In 1884, he set up Piaggio & C. in Sestri, Italy, with three other partners, concentrating on carpentry and cabinet-making. Piaggio outfitted some of the finest Italian and foreign luxury passenger liners ships of the late 19th century. Soon after the turn of the century it extended its activities into rolling stock for the emerging railway infrastructure.

In 1926, Rinaldo Piaggio took a step in a new direction, becoming both producer and operator of aircraft. Together with partners, he founded the privately-held air transport company SANA, Società Anonima di Navigazione Aerea, the first Italian airline for passenger transport. SANA operated flying boat routes in the western Mediterranean area.

As business and revenue increased Piaggio was able, in 1906 to build a factory in the Finale Ligure area. The expansion was timely as The Great War created a demand for both trains and naval craft. The war also allowed Piaggio entry into the field of aviation. World War One aircraft were primarily wooden framed aeroplanes covered by fabric; a field that could benefit from Piaggio’s expert carpenters able to build precision wings and fuselages for much needed fighters and reconnaissance aircraft. The interwar years saw Piaggio usher in a new phase of expansion that permitted them to survive the harshness of the Depression years. This growth was made possible by Piaggio having modern plants and equipment, and by recruiting some of the best technicians and engineers. The 1920s saw Piaggio make a concerted effort to expand their work in the field of aviation, and to launch their own aeronautic designs. The result was a range of seaplanes, passenger aircraft, fighter planes and bombers, as well as several generations

In 1932 Piaggio became involved in the manufacture of in-flight variable pitch propellers, manufacturing the propellers at their aircraft engine plant in Pontedera. This started a long and successful series of controllable pitch propellers. A passing of torch occurred in 1938 with the death of Rinaldo Piaggio. Enrico and Armando Piaggio took the helm after his father’s death. World War II saw a ramping up of design and manufacturing activity at Piaggio. The company manufactured not only aircraft and aircraft engines but also trains, trucks, trams, buses and funicular railways. The company’s most notable aviation achievement was the design and production of a four-engine heavy bomber, the P.108, the only four-engine strategic bomber used by the Regia Aeronautica during the war.

Clockwise from left: The founder of the company Rinaldo Piaggo; The Piaggio P.108 strategic bomber; The Piaggio P.166 utility aircraft and the Piaggio P.149 utility trainer.

With an economy and infrastructure devastated by bombing and bombardment, Enrico and Armando, recognised an urgent need for an inexpensive and reliable form of transportation for the Italian public. They decided to forgo aviation field in the short term and sought to design a motorcycle for the masses. The first attempts did not meet with the brothers’ approval, so Enrico contracted Corradino D’Ascanio to work on the project. The result was the iconic Vespa. Launched in April 1946, it soon became the darling of Hollywood, British MODS and (seemingly) a supporting actor in every Fellini film. But a return to aviation could not be denied for long, and in the late 1940s and the 1950s Piaggio began producing new designs. In 1948 Piaggio launched the Piaggio P.136, a twin-engine seaplane, while in 1953 it produced the P.149, a basic aircraft trainer. In 1957 the Piaggio P.166 light transport aircraft was produced for military and civilian use. With increased success, Piaggio began looking for new opportunities. In 1960, it signed a licensing agreement with Rolls Royce to manufacture its Viper jet engines.

A pivotal moment came in 1964, Piaggio separated itself into two separate entities; one concerned itself with the Vespa motor scooter while the other focussed on aviation and became Piaggio Aero. The modern era for Piaggio began on 23 September 1986 when the first prototype of the P.180 Avanti flew. It received Italian and American certification in 1990. The next generation P.180, the Avanti EVO, emerged in 2014. The EVO has since been used by armed forces, police forces, government agencies, air ambulance units and private operators. It has also served as the platform for the P.1HH HammerHead, an unmanned multirole patrol system that offers applications for ground, coast, maritime and offshore security. Behind the scenes, a series of corporate changes occurred as Piaggio continued to evolve on a commercial level. In 1998 the assets of Rinaldo Piaggio S.p.A. became Piaggio Aero Industries S.p.A. The next change happened in 2006 when Mubadala Development Company acquired a 35% stake in Piaggio Aero Industries. This was followed in 2008 by the Tata Group acquiring a one-third stake. In October 2014, Piaggio Aero changed its name to Piaggio Aerospace. Finally, in 2015

Mubadala Development Company acquired 100% of the capital stock and assumed full control of Piaggio Aerospace. As the 21st century unfolds Piaggio Aerospace is well placed to meet the future. The Company has been shaping the aviation history for more than one century and now moves forward to a new vision, mission and business profile. A continuous commitment to Research & Development combined with innovative design and style drive the growth of Piaggio Aerospace. Nowadays, the Company operates from its brand new aerospace center of excellence at Villanova d’Albenga, in Liguria, Italy. Renato Vaghi is the Chief Executive Officer of Piaggio Aerospace.

PIAGGIO

However, the end of the war saw Piaggio’s facilities, aviation and otherwise, in total ruin. Rinaldo’s two sons, Enrico and Armando, began the slow process of rebuilding and restarting aeronautical production and rail and ship fitting in the Ligurian plants. As they proceeded, the brothers realised that they needed to rebuild the company from the ground up, and fittingly, it was on the ground that Piaggio reignited its reputation for design flair.

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Previous page: The Piaggio Aerospace’s headqurters in Villanova D’Albenga in Liguria Italy. The classic lines of the Piaggio Vespa scooter. This page: Two views of aero-dynamic sleekness of The Piaggio Avanti EVO.

BASYCS

THE BUSINESS AVIATION & SUPERYACHT COMMUNITY, BASYCS SWITZERLAND - GENEVA

What would a land-locked city surrounded on one side by the French Alps and on the other by the impressive Jura mountain range have to offer to the Superyacht and Business Aviation industry? Admittedly Geneva sits on a lake and its premier yacht club, La Societé Nautique de Genève has twice homed the America’s Cup trophy. So there is a nautical link. Geneva also hosts the Bol d’Or, one of the best-known (fresh water) sailing regattas in Europe. Yet this is no bustling Mediterranean riviera port, hosting the great and the good of the world as they enjoy fun in the sun! Far from it. Geneva has its fair share of celebrities but it’s a quiet and discrete location. Now picture this. A Swiss Family Office is urgently requested by its principal to look into the purchase of a Superyacht or Business Jet (who may be Swiss, Russian, Saudi, Emirati or another of the many nationalities that are attracted to Geneva). Not being experts in these niche and often, complicated areas where does the Family Office or prospective owner start and to whom do they turn? Up until two years ago, few knew that Geneva is a growing hub for the Superyacht sector. From Legal services, to bespoke Yacht insurance, Flag and Finance solutions, Geneva is a centre of significant expertise. What’s more, it’s a major centre for private Jet Operation as well as Jet Finance. It was with this in mind, and to address the information gap for prospective new owners of Superyachts and Jets, that in 2016 a group of Geneva-based Business Aviation and Superyacht industry professionals formed The Business Aviation and Superyacht Community, Switzerland “BASYCS”, as a not-for-profit members’ association. The aim of BASYCS is essentially to demystify the Superyacht and Jet sectors for HNWIs or their Family Offices new to this particular asset class,

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and to assist them in better understanding the approach they need to take when considering the purchase, build or operation of their new or second-hand Superyacht or Business Jet. One of ways that the association does this by organising for its Members, regular seminars and presentations in Geneva by industry specialists, on key Superyacht and Jet topics. These could range from discussing legal and contractual must-have’s in Jet purchase, to the insurance implications of Superyacht total loss. Tax implications of Superyacht and Jet ownership has been a firm favourite! BASYCS also arranges social and networking events for its Members and in 2016 the Association was pleased to welcome Ms Rose Damen, Sales Manager of AMELS and Ms Delphine Favier, Managing Director of MONTBLANC to a splendid drinks evening cosponsored by AMELS and MONTBLANC, and overlooking the lake and the famous Jet d’Eau. BASYCS has enjoyed continued growth in membership since it was formed 18 months ago and interest in what the Association has to offer continues to increase. This validates the founders’ decision to create an organisation that serves a community in a targeted and effective manner, ensuring that its Members are kept up to date with latest trends and key information from an insider’s perspective. Geneva is rapidly becoming a centre of excellence and best-practice for the Superyacht and Business Jet industry, and BASYCS is pleased to be at the forefront of this development. BASYCS, through its close collaboration with its media partner YACHTINVESTOR Magazine will, for the first time be presenting itself outside Switzerland, in Monaco during the Monaco Yacht Show 2017. This is an exciting and important

milestone for BASYCS and its founders are pleased to grow the Association’s links with Monaco and the Monaco Economic Board, so that in turn, it can further enhance the service it provides to its Members. For any queries on the activities of BASYCS, please consult our website: www.basycs.ch or contact us on info@Basycs.ch. Mark Burgess Committee Member BUSINESS AVIATION & SUPERYACHT COMMUNITY, SWITZERLAND www.basycs.ch

Clockwise from top left: Raphaël Baeriswyl (Meyer Avocats), Frédéric Meyer (Meyer Avocats), Patrick Bachofner (International Registries Inc - IRI), Mark Burgess (BNP Paribas (Suisse) SA), Anouch Sedef (Meyer Avocats), Fanny Eyraud (PSPI SA).

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BARGATE MURRAY

UHNWI’S COVERING THEIR ASSETS FOR “DOOMSDAY ” As luxury asset lawyers that deal with superyachts almost every day, the question of how one goes about valuing an asset that is not traditionally classed as an investment asset often arises. Recent revelations about how some of the world’s UHNWI are choosing to allocate their capital have triggered a lively debate in our office.

It has been widely reported on both sides of the Atlantic that a number of the world’s UHNWI are taking to buying up self-sufficient “boltholes” in New Zealand and acquiring citizenship there. One of the most notable individuals in this gang is Peter Thiel, the co-founder of Paypal, who is reportedly one of 92 applicants that have recently, and secretly, been granted New Zealand citizenship by way of an investor visa type scheme that fast tracks wealthy applicants and entitles them to purchase land that would otherwise not have been available under normal procedures. When we say “bolthole”, what we are talking about are large and largely self-sufficient properties that have independent access to fresh water, food, and can generate their own power. Of itself, you could be forgiven for wondering why that is interesting, but the reason for this activity most certainly is fascinating. The UHNWI, reportedly led by this generation’s Silicon Valley billionaires, are buying these properties as a hedge against, effectively, a complete collapse of Western capitalism and with it the value of major world currencies and traditional investible assets such as bonds, equities and so on. This is sometimes known as “disaster planning” or “prepping” by a group of super wealthy individuals that call themselves “survivalists”. Essentially, their argument goes that, as the Romans discovered, no empire, however mighty, can assume it will last forever and they will be better prepared than the rest of us if and when civil society breaks down in favour of large scale civil unrest, epidemics and a whole host of other terrible consequences. In such dire circumstances, having the option of sailing away on a fully fuelled and provisioned superyacht would also have an appeal too! You might, quite reasonably, think this is somewhat extreme, but it seems to us that this activity poses some interesting questions which

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might lead to a re-think about how one goes about assessing the value of any asset, including a yacht, and whether traditional wealth management practices and diversification of an investor’s asset portfolio are tied to thinking which is, at best, somewhat old hat and, if you buy into the survivalist argument, breathtakingly naïve. Bringing the subject back to superyachts and the individuals that have the means to buy them, here are our thoughts: 1. As unlikely as a full scale collapse of capitalism might be, the fact that some of the most intelligent and, presumably, well advised people in the world are spending significant amounts of cash to hedge against it should give us all pause for thought. Unlike a physical asset, any currency or paper financial instrument is only worth something for as long as enough people believe it is. 2. We know from our own experiences that this is something at the forefront of the minds of some very wealthy people. We recently shared lunch with a wealthy friend of ours. The main topic of discussion? The number of wealthy individuals piling money into gold and other commodities (including, in his case, dinosaur fossils) with an intrinsic value. Of course, this sort of behaviour could hardly be described as the equivalent of buying a nuclear bunker in New Zealand but the rationale is similar. 3. The 2008 financial crash is as good a recent example as we have of the foundations of capitalism being shaken. That event saw large amounts of capital flee traditional markets and some of it did not return. Instead, many investors, UHNWI’s among them, started to

take notice of the impressive yields available to those who invest in “alternative assets” such as fine art, classic cars, fine wines and so on. These are sometimes also called “passion” assets, by which we mean things that people get a thrill out of owning. The same cannot surely be said for a portfolio of gilts! 4. Make no mistake about it, alternative assets are big business. Knight Frank’s Wealth Report now ranks fine wine above classic cars as the top alternative investment asset on their Luxury Investment Index. According to that Index owners of investment grade wine experienced an average growth in the value of their portfolios of 24%. This is a market that we participate in as minor league investor, as do a few of our clients. For example, a purchase of 2014 Chateau Lafite has already yielded a 12% return. 5. So, where do superyachts fit into this shifting investment landscape? Well, it is probably too early to declare that yachts are about to join the ranks of prime alternative investment assets. They remain in many ways the ultimate discretionary purchase and very much a wasting asset. But then, how do you assess the “value” of your ownership of your yacht? You may not sell a yacht for a profit, or even what you paid for it, but in the process you, your family and friends may have had some truly unforgettable experiences cruising through some of the world’s most beautiful destinations. What value do you ascribe to that? Additionally, if the world is going to hell in a handcart, you can just haul in the anchor and sail away into the sunset! Adam Ramlugon and Mark Needham are superyacht and luxury asset lawyers. They are both partners in the London luxury asset law firm Bargate Murray. E: adam@bargatemurray.com and mark@bargatemurray.com T: 020 7375 1393

GRANT

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CAVENDISH

TOP TIPS FOR NEW PHILANTROPHISTS

In response to an increase in questions by the younger members of their Families on how to be philanthropic, Juliet Cockram Agnew Head of Philanthropy at I.G Advisors and Mark Estcourt Founder & CEO Cavendish Family Office offer you some tips on how to best handle philantrophy. Why give? There are many reasons, ranging from wealth and tax planning, to brand building, to much more personal motivations, that people may decide to get involved in philanthropy. Philanthropy is now in vogue, widely celebrated, and adopted as a worthy lifestyle choice amongst

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the wealthy. We know that philanthropy is on the rise, too. According to the Coutts Million Dollar Donors Report $56bn donations of more than $1m were made in 2015 – a significant rise from the previous year. Giving can be a hugely rewarding experience. Getting to know the dynamic individuals and organisations working on the frontline of social change is enriching and humbling. And such engagement can cut across different aspects of your life – from involving the family and even the children in planning and choosing donations, to engaging companies and their employees. One of the best reasons to give is that the world needs it. Philanthropy has often played a hugely important role in the development of just, democratic societies. Now more than ever – with

such global and complex challenges as global under-nutrition, gender inequality, climate change and the refugee crisis – philanthropy has a very important role to play. What are some of the challenges donors face? Whilst the journey of a philanthropist is a privileged and rewarding one, it’s not easy to be effective. Here are some of the key pitfalls: • Feeling overwhelmed by need – The sheer scale of today’s social challenges can be overwhelming. It is said, for example, that the global economy will lose $12tn if greenhouse gases are not tackled, and that US$3.5 trillion is lost every year due to global under-nutrition. These are staggering figures, but we mustn’t be disheartened. Private wealth has resources to contribute to this challenge, but they need to be allocated wisely. The great news is that with

strategic thinking, even a £20,000 donation could have a catalytic effect in a chosen field. • Defining purpose and value-add – We live in an age of information overload and there will be competing demands for a donor’s attention. The challenge for any donor is how to focus their involvement – this takes a good filtering system and often some solid support. Defining your own purpose and value-add within your chosen field is the true challenge and opportunity of every philanthropist. • Finding great opportunities – The causes that shout the loudest are not necessarily the most effective. Unlike the corporate world, assessing organisations and causes is not straightforward as there is no single bottom line to be compared. There is no stock market for

charitable causes. It often takes expertise and/ or time and immersion into particular cause areas to find fantastic causes that resonate with your purpose and goals. • Regulatory and risk issues – Donors do not often realise the myriad risk, legal and tax considerations in giving. Setting up your own charitable foundation is an appealing option, but comes with its own regulation and governance requirements. The level of transparency that is needed often surprises and frustrates donors, particularly if giving overseas. It is worth taking advice on the right structure for your giving early on. • Power dynamics – Funders need to be aware that they can influence entire sectors of work (not always positively) by how and what they

choose to fund. It’s easy for new donors to wade into subjects with hubris, particularly if they’ve been successful businessmen or women. Unequal power dynamics between funder and recipient do not help to create an honest relationship. Trying to solve a social problem (which is really what this is all about) can take many years, often decades – think of the abolition of slavery, for example, which was pushed forward by a strong civil society movement backed by philanthropic support. It takes patience, focus, and – critically – collaboration across sectors. Top tips for new philanthropists: Understand the change you want to see – try to think strategically. Understand what change you want to see in the world and work backwards from there. Philanthropy can be catalytic when targeted

CAVENDISH

carefully but should be informed by a good mix of passion and evidence in order to be really effective. Avoid duplication – there are already 160,000 charities in the UK, so be brutally honest about whether you have something new to offer by setting up a new initiative or charitable foundation. A good example is Warren Buffet, who has pledged to give 99% of his substantial wealth to philanthropic causes, the majority of which will go to the Bill & Melinda Gates Foundation. Buffet recognises the critical importance of both leverage and avoiding duplication. Sometimes it is worth funding someone else’s initiative rather than reinventing the wheel.

Acknowledge what you don’t know – get informed. Meet people and organisations. Understand the issues in which you are interested. And don’t expect to go it alone. We know that donors give more when they seek and receive good advice – be it from other, experienced philanthropists, or professionals. Support can

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help you to filter information, find and assess great causes, and ensure you are meeting all legal requirements. It will enable you to focus on the fun and rewarding parts of philanthropy whilst ensuring you see the fruits of your contribution much more quickly.

Mark Estcourt is the founder & CEO of Cavendish Family Office who has spent over 25 years advising UHNW families, both domestic and international. He has been in wealth management for his entire career and has also built and sold two wealth businesses from start up during this period.

Just Make a Start! – have a go in one area of interest. Make smaller and simpler contributions initially until you are more comfortable with the process. If there’s one thing I’ve witnessed in my years of working in this space, it’s that donors learn best by doing – so just make a start, and have fun with it!

Juliet Cockram Agnew is Head of Philanthropy at I.G Advisors, a strategy consultancy that works with companies, philanthropists, charities and foundations on all aspects of social impact.

If you are interested in exploring a philanthropic cause or are just interested in obtaining knowledge of the sector, then we would be delighted to help, just get in touch.

T h e

d i f f e r e n c e

i s

t o

b e

m o r e

o u t s t a n d i n g

The difference.

t h a n

a n y o n e

e l s e .

EMMA SWANSON

THE WORLD

AS A CLASSROOM

Educating one’s children is an important but not often disccussed subject. Emma Swanson, noted educationalist, examines some of the options available to parents.

‘Certainly, travel is more than the seeing of sights; it is a change that goes on, deep and permanent, in the ideas of living’ - Miriam Beard One of the many pleasures of a life spent travelling is the opportunity to see the world, visiting far flung destinations which are varied and exciting. From the snow capped mountains of a ski resort to the white sands of an exotic island, the world offers a rich diversity of landscapes to explore. As an educationalist, it is clear that travel can be the most effective of teachers, the most powerful learning tool and certainly the most engaging way to learn. It has been widely acknowledged that we

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all learn most effectively when we are provided with opportunities to ‘live’ through an experience. Having recently travelled with my own family, it became increasingly apparent that the learning that was taking place was truly meaningful. Suddenly an understanding of another religion emerged by living amongst people who lived it daily; an awareness of the impact of the climate was born by experiencing the effects of the heat and an acceptance of social difference seemed a natural conclusion, when surrounded by a culturally diverse environment.

The experience of travelling is one that is described as an education in itself. Opening children’s eyes to the cultural diversity that exists in the world around them; immersing children into a new language; providing truly experiential learning opportunities by visiting ancient ruins, witnessing coastal erosion and exploring jungle environments. The richness of this sort of education is what we, as teachers, aspire to provide to all our students in the classroom but what a difference to be able to enable children to really live it out and for their life to be an education without text books.

‘Travel is fatal to prejudice, bigotry and narrow-mindedness’ – Mark Twain

Whilst a lifestyle of travel may seem prohibitive to the provision of a top education, it does enable families to choose how they wish to educate their children. The experiences that children gain through

travel provide them with a richness of conversation and a depth of knowledge that cannot be gained simply within the confines of a classroom. However, in reality, we do need to ensure that our children are well ‘educated’ in the more traditional sense alongside, ensuring that they are ready for the academic rigors of university and professional life beyond. The exciting truth is that that one option is not mutually exclusive to the other! As parents, decisions about the best way to educate our children are often the hardest ones to make. The options seem endlessly confusing and yet the pressure to make the ‘right choice’ is ever present. The answer often lies in the acceptance that there is no ‘one size fits all’ solution and that we need to find the way which fits most successfully within our own family lifestyle and the aspirations we all have for our children. For some families it will be important to see our children taught in a traditional, historically famous boarding school whereas other people will shy away from such perceived formality and opt for a less restrictive approach that enables families to stay together. For many families the answer lies in the employment of an experienced tutor to provide a rich homeschool environment. Taking a tutor as part of the staff, whether on a yacht or within a global residential set up, enables children to have a truly focused and individualised education whilst benefitting from the enrichment of a global classroom. No longer bound by the constraints of a school term, a tutor will accommodate the family’s other commitments to provide a balanced but highly effective education. In such instances the child becomes a sole

focus for the tutor and therefore not only is the teacher able to ensure that every concept is truly understood but the additional time on offer provides an opportunity to deepen the child’s learning. Over the last decade I have had the pleasure of seeing just how effective such tutoring can be for families where mainstream schooling is rejected in favour of a much more dynamic approach to education. A child who, for one reason or another, has fallen behind their peers in the classroom, will leap ahead academically through the diligent and committed attention of their tutor. Such progress is incredibly powerful in terms of confidence building and means that the child suddenly feels capable and able to master the curriculum they face. The opportunity to then take that learning onto an advanced stage simply due to the additional time available as well as the stimulation on offer is exciting for both child and teacher. The employment of a tutor enables both family and child to experience a newfound freedom. Whereas mainstream education will require a child to be present during a set calendar, tutoring means that children can take part in top end theatre productions or become experienced global athletes, following passions that lie out of the main educational sphere. Their ‘academic’ education does not need to fade and indeed, they will frequently master significantly more in the time that is available to study. Other families may wish to provide some degree of stability for their children by enrolling them into a top boarding school which carries the additional benefit of allowing

children a greater degree of independence away from the demands of the family’s schedule. Particularly popular for families when their children reach senior school at 11 or 13, this allows the children to maintain their own friendships as well as to experience the social ‘norms’ of a schooling environment. The UK is often favoured for such school options with its rich and justifiably renowned education system but in today’s age of global travel, schools throughout Europe, Asia and the US are exciting options for families looking to make the most of the variety of school systems available. When it comes to navigating the admissions process for schools it can be a complex path but the key lies in starting early and following the step by step guidelines available. Many UK schools look for registration by the time a child is 10 years old and families who miss this deadline will suddenly find options close in front of their eyes. That said, the options for schools are vast with the choice of schools being as varied as the types of students looking to attend, so my main piece of advice is to take the time to ensure that the selection of school is the right fit for the child. Pairing the child with the right school is essential to ensure that they are in an environment where they will absolutely thrive! How is such a decision made? How to decide between a co-educational school and one which tailors their teaching style to that one gender? Is it better to send my child to a school teaching A Levels or the IB Diploma and what impact will that decision have on their choices for university beyond? Visiting lots of schools for yourself rather than simply relying on the opinion of others is crucial and talking to people who know the full range of schools is often helpful too. Visiting a school will make it clear whether a school that looks right on paper, has the ethos you feel will be suited to your child. Importantly, when one school suits one child, it may well be the wrong choice for the next child so treating all children as individuals is important too. Ultimately as parents we are in the very best position to know our children and what will suit them best. That knowledge, together with the understanding that there are many options for education available, allows children who are global citizens to make the most of the world that is on offer.

Emma Swanson: Emma was a teacher for many years, teaching extensively throughout the UK and internationally. Her experience has since taken her towards a diverse range of education consultancy, working with families globally to provide a tailored solution for the education of their children whether through the provision of a residential tutor or with guidance to support the school admissions process. As an elected member of the Tutors Association Board, Emma is at the forefront of the UK tutoring industry.

Prince Albert Foundation

ACT NOW

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The Prince Albert II of Monaco Foundation The Foundation, created by His Serene Highness Prince Albert II of Monaco, has been active since 2006 in the following domains - climate change and renewable energies, biodiversity, water and the fight against desertification, and has been supporting projects in specific geographical regions such as the Mediterranean Basin, the Polar Regions and the Least Developed Countries, in order to promote environmental protection and sustainable development. Why Support the Prince Albert II of Monaco Foundation? The Foundation’s goals are to raise awareness at both community and State levels of the impact of human activities on the natural environment, to promote more environmentally-friendly behaviours and to encourage innovative solutions, including through awards and grants. An Endangered Planet • In eight months, humanity consumes all the renewable natural resources that the planet can produce in one year. • The global temperature risks increasing by 4.8°C by 2100. • 43% of the world population will face a water shortage by 2080.

Together, let’s take action to protect our planet for present and future generations

www.fpa2.org

The bank for a changing world