FAMILY OFFICE INVESTOR n.4 by Investor Media Monaco Sarl

FAMILY OFFICE INVESTOR

ISSUE 4

Masthead

Editorial Director: Servanne Sohier servanne@investor-media.com +44 (0)7779 577 614

Business Development: Monaco: Andrea Dini andrea@investor-media.com +33 675 44 19 51

Director: Xavier Calloc’h xavier@investor-media.com +44 (0)7770 917 239

UK: Brian Lynch brian@investor-media.com +44 (0)7421 452 366

Art Director: Annemiek van Luinen annemiek@bloom-graphics.com www.bloom-graphics.com

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Nick Dawes nick@investor-media.com +44 7432 082939

Contributors: John Vidare Ben Allen Tom Montgomery Laura Nineham Anouch Sedef Print: CPUK Print Publishing www.cp-uk.co.uk

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Contents

CONTENTS FAMILY OFFICE INVESTOR 4

Icon Capital Reserve SA

Property Chedi Luštica Bay

Six Senses Residences Courchevel

Wise Words Managing the Future - Ben Allen

Time for Change - Tim Hunter

Are you being Covered? - Tom

Montgomery

Buying a Superyacht. Ten Tips for a

Smooth Transaction - Anouch Sedef Asian Vision - Laura Nineham

Lifestyle A week in the Life of Christophe Bors

Good in the Wet - John Vildare

Jumping International of

Monte-Carlo

Clockwise from bottom right: ©Sam Chruchill; ©Mario Grass/LGCT; ©Jim Martin; ©AdobeStock; ©iStock; ©Studio_M

British Polo Day

Family Office Investor

FAMILY OFFICE INVESTOR

SINGAPORE SOIRÉE

All images © Courtesy of Singapore Yacht Show

The “Family Office Investor Singapore Soirée” was held on 13 April 2018 at the Captains Lounge at the Singapore Yacht Show. More than 30 Family offices, UHNWI and yachting industry professionals gathered to network. The evening was held in partnership with Silver Arrows Marine, Thirty Nine Monte-Carlo and the Singapore Yacht Show. The evening started with a champagne reception, followed by presentations by our partners and networking drinks. We would like to thank our event partners and guests for making the evening such a success.

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Â© iStock

Icon Capital Reserve SA

USD$9.8 BILLION INVESTED IN ICO’S. N O W W H AT ?

HOW CCO’S WILL ACCELERATE GROWTH

IN THE USD$400 BILLION ASSET CLASS. J. Bradley Hall is the Founder, Chairman and CEO of ICON CAPITAL RESERVE. Brad is the architect behind the launch of a number of successful companies and enjoys a reputation as a focused, energetic entrepreneur with 29 years of finance, M&A, gold trading and fund management experience. Servanne Sohier caught up with him to discuss developments.

Servanne Sohier: Hi Brad. I want to welcome you back and thank you again for the thoughtful interview in our December Family Office Issue. We are eager for an update on what has been happening in the digital currency space and importantly, developments with ICON. Brad: Hi Servanne. It is my pleasure and I am very excited to be speaking with you again. Ok let’s begin. In December, you provided the following quote when we were discussing whether Bitcoin was in a bubble? “I hear that question quite frequently. Bitcoin (BTC) is clearly in Bubble territory and as Voltaire noted, all fiat currencies revert to the mean, which is zero. BTC will follow the trend as it remains a ‘claim check with nothing to claim’, however it may go to $20k first, so if you are trader, enjoy, otherwise I would advise caution.” And you are now wondering if I have a crystal ball? (laughing) Well BTC did almost immediately ascend to $20k, collapse to $6k and is now back where we started in December at $8-9k, so if you don’t have a crystal ball, how did this happen? To quote Jamaican singer Shaggy, “It wasn’t me”. Candidly, after 32 years working in tech and finance

in 35+ countries, I have reasonably concluded that innovation comes in waves and is often evolutionary vs. revolutionary. There are well defined patterns that reflect how disruptive technologies are adopted and everything can be calibrated within a shorter term trend or longer term cycle. I have been a student of these for a very long time and of course having trusted Advisors like Bob Flohr and George Kanaan doesn’t hurt. Bob has served as an advisor to the boards and executive leadership of several major banks, consulting on issues related to corporate restructuring and integration, strategic planning, business growth, management development, succession planning, leadership and change management. He is a graduate of Princeton University where he also spent four years as an Assistant Dean and academic advisor. George has been Chief Executive Officer and Director of the Arab Bankers Association in London since August 2009. The association serves through its events and publications as a focus for Arab bankers in London, Europe and throughout the Arab World. He has been involved in banking and finance for most of his professional career and has written extensively on banking and finance. George studied

at the American University of Beirut, CarnegieMellon University, the University of Bridgeport and the Harvard Business School. He holds degrees in Engineering and Business Administration. So, Past Really is Prologue and you have a number of lenses to observe it through? Absolutely! At the moment, I am in London after recent trips through Zurich, Johannesburg, Sao Paulo and New York as we continue to work with UHNW and Family Office investors. We launched ICON well ahead of the curve in 2013 and as you know, I have spent several years speaking at events promoting the Blockchain as the next and much more important version of the internet. Looking back, I can laugh at how some of the most successful families in the world thought I had completely lost the plot or maybe even beamed down from another planet. Well, a funny thing happened on the way to 2018, the future got a little more evenly distributed. The amount of capital flowing into digital currencies must feel like a validation. Well many of the families still think I’m crazy but for different reasons now (smiling). Since 2016, USD$9.8 billion has been raised by companies through ICO’s or Initial Coin Offerings and the asset class is now worth over USD$400 billion.

Icon Capital Reserve SA

I’m sure many of our Family Office investors are now trying to understand ICO’s looking for the next Google. Can you help? I think I can and I rely on other trusted advisors like Aly Madhavji, the Founder and Former CEO of Global DCX, an innovative technology company launching secure digital currency exchanges across the globe starting in India. He is also an avid investor in early stage companies, digital currencies, and Initial Coin Offerings (ICOs). He is an internationally acclaimed author and has served in several advisory roles including as a Governor of the University of Toronto where he was a member of the Executive Committee of the university. He has lived and worked across 4 continents (North/South America, Europe, and Asia) with PwC, PayPal, Microsoft, Bloomberg, and INSEAD. He also holds the Chartered Professional Accountant, Chartered Accountant, Certified Management Accountant, and Chartered Investment Manager designations and an MBA from INSEAD. The next growth phase in the space will be focused on ‘stable coins’ or ‘asset backed tokens’ like AUREALS™ which are a fusion of Gold and the Blockchain, as BTC and the other 1600 so called utility tokens remain ‘claim checks with nothing to claim’ and will no doubt revert to the mean which is zero. This is not nearly as much of an opportunistic statement as it may sound. The genesis of ICON can be traced back to August 09, 2007 when 185 year old BNP Paribas announced to the world that they did not know how to value their derivatives book and the re-set of the monetary system began in earnest. BNP were quietly bailed out and months later, Bear Sterns was offered up in a fire sale to JPM. The pace accelerated with Lehman Brothers, a 157 year old legend, imploding leaving USD$613 billion in debt. US Treasury Secretary Hank Paulson, convinced US congress that the world was going to end. Congress capitulated, agreeing to authorize the creation of USD$800bn in fresh debt called quantitative easing. How anyone could believe that more debt was the answer to a monetary system already choking on it, remains a mystery. The accounting principals (GAAP) were re-written with FASB 157 approved on April 09, 2009 allowing financial institutions to as Warren Buffet dubbed ‘mark-tomyth’ for balance sheet assets (on an interim basis) and US banks have just now requested an extension until 2022. If you look at any stock market chart you can see a parabolic rise that can be traced back to this exact date. The FED is believed to have

Family Office Investor

transferred between $20-$100 trillion of their USD$ debt notes to the cabal of 80+ cross-owned private Central banks and global commercial banks since that time. Also in 2009, Satoshi Nakamoto published Bitcoin: A Peer-to-Peer Electronic Cash System and the first units of exchange called Bitcoins were mined, registered and circulated on a distributed ledger called the Blockchain. The genesis block had a timestamp of 18:15:05 GMT on January 3 2009 and the inventor left a text message in the first mined block which reads “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” Perhaps it is reasonable to suggest that BTC launched in 2009 was not just random timing, that in fact the ongoing financial crisis may have been the stimulus. When you start to connect the dots, some things become increasingly self evident. I can now share some observations that may provide validation or for some, maybe even an epiphany for others a sure cure for insomnia. So come down the rabbit hole with me for a while (laughing again). Aristotle considered that every object has two uses, the first being the design utility of the object, and the second, as an Asset to sell or directly exchange for some other Asset. The capacity to carry out direct transactions was limited to a coincidence of wants. To trade grain for fruit, both items needed to be available at the same time and place, with each trader desiring what the other is offering. The Babylonians and their neighbouring city-states led by King Hammurabi, developed the earliest system of accounting, ledgers, banking and money supported by legal contracts and law codes relating to the trading of Shekels (Financial Liabilities), indexed to Gold Receipts (Gold Financial Assets) directly indexed to Physical Gold Bullion (Gold Physical Assets). In 1816, the Bank Of England (BOE) deployed the same architecture with: (i) 400 oz Gold Bars stored in the vaults as Gold Physical assets; (ii) Sovereigns entered BOE ledger as Gold Financial Assets and (iii) £1 Sterling Silver Tokens, issued to trade as money and entered as Financial Liabilities in BOE ledger. In 1913, both the FED and the IRS were created, with a fractional reserve architecture with: (i) 400 oz Gold bars reserved in Fort Knox as Gold Physical Assets; (ii) In a sleight of hand, T-Bills that were 60% indexed to future IRS tax obligations and 40% indexed to Physical Gold as ‘Fractional Gold’ Financial Assets and (iii) USD$ Notes issued to trade as money and entered as Financial Liabilities in the FED ledger.

In 1944, the Bretton Woods Accord, this fractional reserve was replaced with a new gold standard of (i) 400 oz Gold bars in Fort Knox as underlying physical assets; (ii) USD$ that were indexed to Physical Gold as financial assets but also traded as money and (iii) Various Global Currency Notes issued to trade as money and entered as financial liabilities in the FED ledger when swapped for USD$. In 1971, Nixon closed the US Treasury window ending the convertibility of USD$ debt notes to gold. The USD$ was dead, at least until 1973 when Henry Kissinger persuaded King Faisal of the House of Saud to clear and settle oil trades exclusively in USD$ in exchange for a US military commitment to keep the oil flowing. Top FED Economist Dr. John Exter observed “We are in a world of irredeemable paper money, a state of affairs unprecedented in history.” Monetary scholar Dr. Edwin Vieira of Harvard has observed that every 30 to 40 years the reigning monetary system fails and has to be retooled. When the financial system hits an apex, collapses and resets, Gold is reasserted as the numeraire against which value is indexed to start the next economic cycle. The current Petro Dollar System began 45 years ago and appeared poised for a reset right on schedule in 2007/2008 with the FED leading the efforts to defer or kick the can down the road as long as possible. Dr. Viera also noted that the average life expectancy for financial liabilities in the form of currencies is 27 years. Voltaire put it succinctly when he observed “All paper money eventually returns to its’ intrinsic value ~ ZERO.” OK I am still with you, this is a lot of information to digest! It is amazing what can be revealed when you identify trends and get a clear understanding of what might be coming next. Throughout history the command and control hierarchies were largely centred around religious leaders who were well educated and could read and write. 577 years ago when Gutenberg invented the printing press, it democratized the creation, storage and trading of centrally controlled knowledge. The Chinese later used the presses to create paper money (and inflation!) rendering Gutenberg’s invention on par with gunpowder in terms of historical significance. In 1944, the year that Bretton Woods ushered in a global, gold backed USD$, IBM developed its first mainframe computer, known as the Automatic Sequence Controlled Calculator (ASCC). It solved addition and multiplication problems in less than six seconds. In 1962, J.C.R. Licklider of MIT (later DARPA) revealed his “Galactic Network” concept, a globally interconnected set of computers through which

everyone could quickly access data and programs from any site, which was a radical departure from centralized computing being done on room-sized mainframes. In 1972, ARPANET, complete with the original killer app ~ electronic mail was demonstrated. In 1982, Xerox PARC research revealed Ethernet leading to the development of LANS, PCs and workstations. Is it fair to say that the pace of innovation is evolutionary with certain breakthrough moments followed by a rapid pace of iteration? I agree with your observation. I think that is exactly how innovation works. To continue, in 1994, a NRC report ~ Realizing The Information Future: The Internet and Beyond was released as a blueprint highlighting critical issues of IP property rights, ethics, pricing, education, architecture and regulation. 1994 also marked the launch of Apple Computers by Steve jobs and Steve Wozniak who as first movers in the personal computer space democratized the creation, storage and trading of centrally controlled digital knowledge. In 1994, it also marked the launch of Netscape where founder Marc Andreessen created the Mosaic browser based on research done earlier by Tim Berners Lee. In many ways the Company sparked the internet boom of the 90’s which democratized the creation, storage and trading of decentralized digital knowledge. If the internet was the information superhighway, then Netscape browsers were the on-ramps. In 1994, a company called Cadabra was launched as a first mover in the internet retailing space. Founder Jeff Bezos renamed the company Amazon a year later and it is now the world’s most valuable retailer. Today, Amazon Web Services (AWS) the cloud storage business, contributes virtually 100% of Amazon’s elusive profits. Also at that time, I began working with some very clever guys who had developed software that could allow non-programmers to write software. They went down a path of using traditional resellers, while we negotiated a site license and created North America’s first software factory, offering firm prices and delivery dates. Remember, evolutionary not revolutionary. We sold that company to an Indian Group that went on to become a leader in offshore software development. How did that sale compare to a public exit like some of your previous ventures? Great question. At the time, it seemed like a lot of money but that Indian company is now worth $80 billion, so I guess I should have taken shares (laughing again). Next up for me was a year at IBM helping them position OS2 in the retail channel to compete with Microsoft. We collectively enrolled 6 new million customers and generated $1 billion in revenue and I left with two important takeaways. First, the best technology does not always win and Second, I would rather learn to Samba barefoot on broken glass than deal with large bureaucracies on a daily basis.

Sometimes experiences teach us about what we enjoy or are good at and also re-enforce what we do not enjoy or prefer to avoid. Yes! The important thing is to find that key lesson or takeaway from every experience. Next up was a bit of a whirlwind for me. We re-packaged Canadian tax credits into a structured products hedge fund that invested into public companies. We moved a somewhat boutique offering with an attractive 6% management fee for 10 years into retail brokerage distribution. I was responsible for fundraising and we brought in $128 million through 25,000 investors in just 25 days. I believe it still stands as a new launch record 22 years later. The fund had $1.8 billion AUM when it was sold and when I exited, I ended up re-domiciling to Barbados.

“

I left with two important takeaways. First, the best technology does not always win and Second, I would rather learn to Samba barefoot on broken glass than deal with large bureaucracies on a daily basis.

”

I’m guessing for some well deserved beach time? Looking back, I think I successfully channeled Captain Morgan for a while but I also established a merchant bank called ICON Capital Corp. based on the thesis that software, telco and finance would all ultimately converge as interchangeable 1’s and 0’s and I ended up in San Francisco in the original dot com boom investing in pre-IPO software companies. The IPO culture actually reminds me a lot of the ICO mania we are seeing now. Many remember www.pets.com spending $30 million on a sock puppet commercial for the Super Bowl with most of the IPO’s imploding but that was also the era where Amazon, Google, E-bay and Netscape were created. So thinking about ICO‘s today, many if not most will certainly fail but there are some iconic companies being created right now. Iconic? Really Brad? Sorry Servanne, I couldn’t resist. I realise this is a lengthy overview and I wanted to see if you were still listening! Anyway, after the dot com turned into dot bomb, I spent a few years in Southern California and Whistler, golfing, skiing etc until things settled down a bit and then launched a company to acquire orphan IP (from all the billions invested in the 90’s) and distribution in the form of emerging market partners of Oracle, working closely with Charles Phillips who was their President at the time. We acquired companies across Europe and the CIS in places like Russia, Kazakhstan, Azerbaijan, Ukraine and from Venezuela and Colombia down to Argentina as well as throughout Asia and Australia. We really developed some important skills that allowed us to thrive across culture, geography and language.

So you have lived and worked all over the world and these experiences have helped shape your vision for ICON and what is coming next in digital currencies. That is a very nice way of putting it. As an entrepreneur, essentially my job is getting in front of a trend and waiting for the rest of the world to catch up. About 10 years ago, I began to learn about Gold and the role it plays as the ultimate store of value. I discovered that sovereigns, dynasties and some of the smartest families in the world use Gold to store the wealth they create through their other commercial activities. This understanding led to the launch of a Gold trading platform in Hong Kong that was ranked the #1 new start up there at the time. Gold trading is rather opaque and can be challenging with many sellers not owning the Gold and buyers not having the money, so we invested in a number of innovative approaches to remove friction by verifying bullion, dematerialising it for trading and then moving it back into physical form anywhere in the world, on demand. Would you describe yourself as a gold bug? No not at all, I do understand the role gold plays as a store of value for 6000 years and we are enhancing those unique characteristics with cutting edge encryption and distributed ledgers. I see. ICON builds on the trust of Gold and the power of the Blockchain. Exactly! You may recall the 3 legs of the stool underpinning my investment thesis from 1996: software (faster/cheaper); telco (global network); finance (money) all converging into 1’s and 0’s. It became clear that Gold underpinned the global financial system and seigniorage involved in converting/creating money had historically been the right of Kings. It was 2013 and I was thinking we would need to acquire a global telco network or secure expensive bandwidth in order manifest the vision. It was then, I was reluctantly persuaded to attend a Bitcoin event in Buenos Aires. I believe that 2013 was still early days in Bitcoin? Yes it certainly was and in many ways it still is. I arrived at the event in BA to find a couple hundred young, motivated anarchists. There was tremendous energy and excitement but not too many business models or plans being discussed. For us older guys in the crowd, we felt a bit like adult supervision but when I sat in on a presentation on the Blockchain it was an epiphany. I felt like I had been hit by lightning and I now had the missing piece to our puzzle! Our new company was launched days later and we began building ICON to issue AUREALS™ around the Coloured Coin Protocol of the original Blockchain. What is the current state of the original Blockchain? Well, technology is a faster, cheaper business. As we see in all our devices, things like memory and processing power expand while becoming cheaper

Icon Capital Reserve SA

Graphic from one of the vaults used by Icon Capital Reerve to store the gold. This one is in Switzerland.

over time. In the last 9 years, settlement times on the Blockchain have actually increased from the original 10 minutes and the cost of mining BTC has increased to USD$3200 per token. I would suggest that neither of these are sustainable. Do you see better alternatives? Yes in fact we have shifted to Ethereum. In late 2013, Vitalik Buterin published a white paper that proposed development of a new platform for building decentralized applications on a Blockchain called Ethereum and it was launched in July, 2015. Unlike real computers that have limited physical resources like memory and processing speed (linear bounded automation complete), the Ethereum platform is a universal computer existing on networked computers across the globe. It is described as ‘Turing Complete’ meaning that the platform can simulate the aspects of any other real computer or computer language but also offer infinite memory and availability with no down time. This was a game changer. In plain language there are three important caveats of the Ethereum Turing Complete distributed ledger platform including: (i) it runs 24x7 and has no single point of technology failure; (ii) it is based on open source software protocols insuring that records or entries cannot be manipulated by an owner/vendor; (iii) there is no single point of regulatory capture. Ethereum utilizes smart contracts or a Blockchain transaction protocol that executes the terms of a contract. A Blockchain based smart contract is visible to all users on the Blockchain and smart contract infrastructure can be implemented by replicated asset registries across the distributed ledger with contract execution using cryptographic hash chains and Byzantine fault tolerant replication. Buterin opined that new contracts could be built that would become self-executing, programmatically enforcing themselves instead of being enforceable through a legal system. Advantages of a smart contract over conventional contracts would minimize counterparty risk, reducing settlement times and increase transparency. As a result, the definition of property has expanded with the idea that cryptographic, Blockchain based tokens now serve as representations of physical assets and AUREALS™ are the first scalable example of these smart contracts fully indexed to real assets like Gold. The implementation of smart contracts in Ethereum is relatively new, however the phrase was coined by Nick Szabo in 1996 and reworked as “Formalizing and Securing Relationships on Public Networks” describing how it would be possible to establish contract law and related business

Family Office Investor

practices through the design of protocols between strangers on the Internet. Szabo described smart contracts as: new institutions, and new ways to formalize the relationships that make up these institutions. Contracts were smart, because they are far more functional than their inanimate paperbased ancestors, specifically with a smart contract composed of a set of digital promises including protocols within which the parties perform on these promises. Ethereum utilizes Ether to fuel transactions and the current value of Ether Tokens in circulation is USD$68 billion. Is it fair to suggest that you feel Ethereum will dominate? It will certainly be one of the dominate Blockchains. As BTC tokens disrupted fiat currencies they have not achieved escape velocity and although fun and potentially lucrative for traders they do not solve any real world problems. In Disruption of an Incumbent, the Disruptor introduces a new product with a distinct point of view knowing it does not solve all the needs of the entire existing market but advances the start of the art in terms of technology. Next in Rapid Linear Evolution, the Disruptor proceeds to rapidly add features and capabilities, filling out the value proposition after initial traction with select early adopters. This is followed by Appealing Convergence, where the Disruptor sees an opportunity to acquire broader customer base by appealing to slower movers who are now showing interest in the offering. This is followed by a Complete re-

imagination, where the Disruptor focuses on new entrants who enter the market without embracing the legacy customers. Perhaps BTC will become the Betamax or Myspace of Digital currencies? Yes, an interesting footnote displaced by much more compelling offerings like AUREALS™. Can you remind us of how AUREALS™ work? Of course. We have relationships with insured vaults in free zones in places like Shanghai, Hong Kong, Singapore, Dubai and Switzerland where our partners operate a former military facility inside a mountain complete with a private airstrip. ICON is not a bank, so the Gold we store is fully compliant and exempt from declaration under FATCA and similar schemes in 109 countries. We store 1-kilo bars and receive safe keeping receipts (SKR’s), which do not involve a change in title. Each receipt details all of the 1-kilo gold bars specifications. You mentioned previously that the Gold is secure, discreet and private. Great memory! We use these SKR’s to create a smart contract called a CINTAMANI™, which in Sanskrit means converting thought energy into Gold. Each of these contracts entitles the holder to the Physical Gold and we register and reserve these on the Blockchain. They are encrypted and can’t be double spent or stolen. We convert physical gold assets to financial gold assets that can be verified on demand. You are using the Ethereum Blockchain as a de-centralized ledger to register and exchange these assets? Indeed and so it follows that each CINTAMANI™ allows us to create 1000 AUREALS™, which are also smart contracts registered on the Ethereum Blockchain, as 1 gram financial gold liabilities.

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You can literally send USD$100m in AUREALS™ phone to phone, in 15 seconds without going through a bank.

”

Please remind me how does a Private client get AUREALS™? In seconds they can set up a digital wallet that looks very much like an on-line banking dashboard but acts like a virtual safety deposit box. We use AI to create an encrypted key to the box and the address is registered on the Blockchain. All of the T’s & C’s & subscription agreements are in the wallet. A software licence is executed and then funds are sent our bank pursuant to a commercial invoice. That sounds like a crucial aspect, so now the private client is simply paying a commercial invoice and then presumably keeps the contract as evidence of source of funds when they liquidate? Yes that is an important observation and it allows banking compliance to tick the box on inbound and outbound transfers. We price the AUREALS™ based on 99.99% of spot gold and they are issued into the wallet. So now I have my AUREALS™ what can I do with them? You can use them as a compliant and exempt store of value that sits outside the banking system. You can exchange them with any other wallet holder and we use the Blockchain to clear, settle and irrevocably register those transfers in 15 seconds. You can literally send USD$100m in AUREALS™ phone to phone, in 15 seconds without going through a bank. AUREALS™ will be bought and sold on various digital exchanges and of course at a minimum threshold of USD$1m you can exchange for the underlying physical gold.

I can see how UHNW and Family Offices might love AUREALS™. How have sales been going? ICON has begun the process of our Collateralised Coin Offering in an environment where tremendous awareness has been created by BTC, ETH and other tokens and although sophisticated investors and institutions have been watching, they not been active investors. They have shifted from a sense of scepticism to not wanting to miss out which is cool. I’m excited to confirm that our Private pre-sale of AUREALS™ exceeded our expectations with close to 3 million AUREALS™ issued at a 10% discount, representing subscriptions worth over USD$100 million (goal was 2.5m AUREALS™). Congratulations! That has to make AUREALS™ one of the most successful launches? We are just getting started. Our Public presale kicks off in London on May 16th where we have targeted issuing up to 5 million AUREALS™ at a 5% discount, which if fully subscribed, would be an additional USD$200m+. That is expected to be followed by a Public General sale and we have again targeted issuing up to an additional 5 million AUREALS™ at a 2% discount with our goal over the next 12 months of issuing USD$5 billion+ in AUREALS™ at 99.99% of spot Gold prices. Let the Games Begin! So the next leg up in the digital currency asset class will be stable coins or Collateralised Coin Offerings like AUREALS™. What else is driving the trend? Well the USD$400 billion asset class is made up of correlated assets that draft up and down together. Informed observers suggest that an unrelated numeraire that can be used to facilitate trading of all digital tokens would be extremely valuable and AUREALS™ seem to be particularly well suited for this task. AUREALS™ could be a clearing currency for all digital assets? Exactly! And of course from a macro perspective we are seeing the sun-setting of the Petro Dollar which came into being in 1973 that may create significant upward pressure on Gold prices. Former Head of the Federal reserve, Alan Greenspan has noted “History has not dealt kindly with the aftermath of protracted periods of low risk premiums. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. The Federal Reserve era of quantitative easing and zerointerest rate policies cannot be exited without some significant

market event that will result in gold prices moving measurably higher.” Famed investor Jeffrey Gundlach, CEO of Doubleline, who is also known as the bond king was quoted on the prospects for Gold recently “We see a massive base building in Gold. Massive. It’s a four-year, five-year base in gold. If we break above this resistance line, one can expect gold to go up by $1,000 or more.” We are potentially seeing significant potential growth in CCO’s or stable coins along with a renaissance for Gold. This sounds like the perfect storm for ICON and AUREALS™! Yes the timing is optimal. I am lucky to also be able to tap into the psyche of one of the leading Gold experts on the planet, Marcus Grubb, who led the World Gold Councils’ Investment team and was the global investment strategist and spokesperson for seven years. A key focus of his role was the oversight of new product innovation, which saw him initiate the WGC’s involvement with BullionVault and with ICBC, to launch the gold accumulation scheme in China. He played a key role in the marketing of the gold ETFs in the USA and Europe and also enjoyed a career in banking as founding CEO of Swapstream, an interbank dealing exchange for interest rate swaps, now owned by the Chicago Mercantile Exchange. Marcus was also global head of equities at Rabobank and a top rated investment strategist at the investment houses UBS, Salomon Brothers and SBC Warburg and he holds a first class degree in modern history and economics from Queen’s College, Oxford. You have surrounded yourself with some clever, experienced people. Well I have found the more successful and motivated people I enroll into the success of what I am doing, the greater the likelihood. I’d also like to leave you with a final thought. In 2004, the World Gold Council in London and partner State Street in Boston launched the GLD ETF. This structured product innovation allowed Gold to become an exchange traded offering targeting institutional investors. When opportunity and timing collide amazing and occasionally historic things can happen. Gold was trading at cUSD$445 per ounce and the initial AUM in the GLD ETF was USD$115 million growing to USD$3.5 billion in the first year. In the second year, the AUM grew to USD$8.3 billion and ultimately up to USD$76 billion setting a benchmark for a timely Gold structured product offering that some objective observers of ICON believe is about to be eclipsed with AUREALS™ Thank you Brad. It sounds like you have created an incredible opportunity and I’m confident our audience will be eager to learn more about AUREALS™. My pleasure as always. This was really enjoyable and I look forward to our next conversation when the asset class has grown to USD$1 trillion+.

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Property - Chedi Luštica Bay

THE CHEDI LUŠTICA BAY Where tradition enchants and nature entices

Luštica Bay is delighted to announce the launch of the first of seven hotels, The Chedi Luštica Bay, situated on the waterfront with superb views of the bay, marina and the Adriatic Sea. The parent hotel company GHM and the Chedi brand which initially established its name in Asia and the Far East, is continuing its expansion into Europe with a new luxury 5-star hotel in a prestigious location in Montenegro in the Balkan Peninsula.

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Property - Chedi Luštica Bay

Set between emerald waters and mountainous horizons, at the entrance to the UNESCO world heritage site of the Bay of Kotor, the 111-key hotel is set to open its doors in July. It marks the brand’s second hotel in Europe after Andermatt in Switzerland and will benefit from the fully integrated resort development at Luštica Bay. The hotel boasts 45 rooms and 6 suites, and features condominiums including 55 rooms, 4 suites, and 1 penthouse for sale, making it one of the largest luxury hotels in the area. The hotel also offers a private beach, indoor and outdoor pools and sundeck, and direct access to the serene promenade and marina. The conference centre and business centre are first rate too, with meeting rooms, a sizeable ballroom, and pre-function area. Marc de Ruijter, General Manager, “We are tremendously excited to be launching the first hotel at Luštica Bay, Montenegro’s largest fully integrated resort development on the Luštica peninsula. We are looking forward to indulging guests with our meticulous service in incomparable elegant surroundings with a refined, yet relaxed traditional coastal ambiance. Chedi hotels have been created as tranquil settings where on their journeys, travellers rediscover the peace of solitude and stillness amidst environs of beauty – and we couldn’t think of a more apt location than Luštica Bay for guests to have the legendary Chedi experience!”

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The hotel is designed by the acclaimed TVS Design studio from Atlanta Georgia in the USA, who have adopted a modern interpretation of the vernacular architecture, with a contemporary, fresh and airy design by GG & Grace, taking advantage of the views and beautiful scenery by using materials that accent the pristine coastal location. A mix of bold splashes of colour with a more neutral primary palette will give the hotel its own unique character and offer guests moment of relaxation and inspiration. All the rooms are comfortably furnished in a minimalist style, with simple, modern decor and sensitive lighting which emphasises their luxury. The hotel has two restaurants which overlook the emerald bay water and use the freshest local ingredients to whip up mouth-watering meals. A delectable buffet breakfast, as well as panMediterranean lunch and dinner is served at ‘The Restaurant.’ Meanwhile the marina restaurant, ‘The Spot’ will offer an enviable al fresco setting on the promenade, and will serve a fine selection of Asian inspired snacks and light meals. There will also be a lobby bar with cocktails, as well as afternoon tea, and the pool and beach bars will also serve refreshing beverages. For those in need of a reinvigorating stay, and balancing the body, mind and soul, surrender to the serenity of The Chedi Spa with ancient healing traditions of the East. The treatments include

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We couldn’t think of a more apt location than Luštica Bay for guests to have the legendary Chedi experience!

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The Chedi Luštica Bay has a refined yet traditional coastal ambiance. The interiors have a neutral palette with bold splashes of colour.

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Montenegro is steadily becoming a go-to destination for those seeking an ultimate luxury Riviera lifestyle.

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stimulating body polishes, nurturing envelopments, and romantic bathing ceremonies, all designed to pamper and restore vitality. The fitness conscious can look forward to a state of the art gymnasium. The project is developed by a renowned town builder, Orascom Development Holding A.G., one of the largest corporate groups in the MENA region. The development offers waterfront residences, hotels, berths, and a star leisure attraction will be Montenegro’s first 18-hole championship golf course, designed by Gary Player, which will open in phases and is due for completion in 2021. The initial phases will include more than 1,500 properties including apartments, villas, and townhouses. The development will boast two top flight marinas offering 225 berthing options of up to five years. The main marina is also due to be operational by this summer and in its first phase will offer accommodation for 50 power and sail boats up to 35 metres in length, which will extend to 176 when fully complete, and a sizeable secondary mooring area for smaller vessels is also planned. Luštica Bay will feature year-round amenities including shopping, dining, educational and medical facilities. Some residents have already been living at Luštica Bay for three years, with 160 apartments in Marina Village now complete, and with about 250 properties already sold, and the townhouses and villas also due for completion this summer. In

Q4 2018, construction will also begin on Centrale, a commercial and administrative hub, and a focal point for Luštica Bay’s community life with the first phase completing by summer 2019. Darren Gibson, Chief Executive Office at Luštica Bay commented: “Montenegro is steadily becoming a go-to destination for those seeking an ultimate luxury Riviera lifestyle. It is with great pride that we are bringing the iconic Chedi brand to Luštica Bay. Along with the launch of the first marina this summer, this is a significant milestone in the development of our project. The Chedi is a perfect fit for Luštica Bay, given the synergies in the brand ethos of both companies. This agreement reaffirms our commitment to the highest quality development and firmly establishes Luštica Bay at the forefront of luxury residential and tourist destinations in the region.” As Lord Bryon famously said: “At the birth of our planet, the most beautiful encounter between land and sea happened on the coast of Montenego” and The Chedi Luštica Bay and its location succinctly articulates this beauty, culture, and history of Montenegro.

Property - Chedi Luštica Bay

Luštica Bay Luštica Development AD was founded in 2008 as a joint venture between Orascom Development Ltd. (90%) and the Government of Montenegro (10%). As a subsidiary of Swiss Orascom Development, a renowned international town developer, Luštica Development AD is the national project company responsible for developing, building and operating Luštica Bay and will remain a local partner for generations. The project site is an inspiring, wonderfully secluded area along the Luštica peninsula, where rolling hills cascade down to an idyllic coastline. Its 690-hectares will be sensitively developed into a fully-integrated, new town in Montenegro with a state-of-the-art infrastructure. It will mark the biggest investment volume development in Montenegro yet (1.1 billion Euros) and after completion will host a few thousand residents, more than 1000 apartments in its first phase, more than 500 villas and townhouses, seven hotels, two marinas, a signature 18-hole golf course and a range of public facilities including a school and medical facility. www.lusticabay.com

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Orascom Development Holding A.G. (ODH) ODH is a leading developer of new towns, creating truly self-sufficient, international communities. ODH is currently present in nine countries across three continents, among them: Egypt, UAE, Oman, Switzerland, Morocco and Montenegro. The company is headed by a highly experienced executive management team with extensive expertise in the travel, tourism and real estate sectors and has a team of approximately 9,000 employees. The companyâ&#x20AC;&#x2122;s hotel portfolio encompasses 35 hotels with more than 7,800 rooms.

Orascom Hotel Management A subsidiary of Orascom Development, Orascom Hotel Management is a Swiss based company, specialising in the development and management of touristic towns. It is one of the biggest hotel owners and operators in the MENA region, which includes more than 35 operating hotel properties, with more than 8,000 guestrooms dispersed across Egypt, Oman and the UAE, along with other Hotels under development in Montenegro and Morocco. orascomhm.com

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ÂŠ Studio M

Property - Six Senses Residences Courchevel

THE PINNACLE IN MOUNTAIN LIVING AT

COURCHEVEL 1850 Dubbed the St Tropez of Winter Sports, Six Senses Residences Courchevel achieves an unparalleled and unrivalled alpine experience in the heart of the French Alps. Inspired by its surroundings, the residences combine the contemporary with traditional mountain living. Six Senses Residences Courchevel achieves an unparalleled and unrivalled alpine experience in the heart of the French Alps. Inspired by its surroundings, the residences combine the contemporary with traditional mountain living. Residents and visitors of this unique mountain living concept have access to a private spa, a Club Lounge, and an in-house concierge, which combines the very best of prime property and wellbeing with all the services to be expected of a five-star hotel. There is also an additional dedicated ski concierge located in a private chalet under the main ski lift in Courchevel 1850. It is no wonder that the international jet set are opting for these freehold residences instead of investing in chalets with often high running costs. The other key benefit is that the resort boasts is the legendary highest asphalted runway in Europe at an altitude of 1,010m which is just 537m in length. The Residences are supported by Six Senses world-renowned service team dedicated to offering an extensive range of services including 24/7 concierge, shuttle services, private catering, and bespoke transport solutions - completely unique to any alpine residential development. Over 50% of the 53 exclusive apartments have sold; they range in size from 70 to 268 square metres, and the 10 penthouses offer sensational triple aspect views with balconies and terraces with mountain scenery, and some include further perks such as wine cellars and private spas. Prices range from €1.5m to €8.8m and buyers who are not using their apartment throughout the season have the option of renting it out in order to recoup the VAT included in the published sales price.

Ski Playground to the Elite The ski playground to the elite, Courchevel 1850, has now evolved into a byword for opulence,

and is the most fashionable ski destination in the Alps, a magnet for ultra-wealthy, royals and A-lister celebrities, with an array of Michelin-starred restaurants; on piste eateries such as Chalet de Pierre and newcomer Nammos; three of France’s 16 officially delegated palace? hotels, including one owned by Bernald Arnault of luxury goods group LVMH; and a multitude of big brand boutiques including Chanel, Louis Vuitton, Hermes, Fendi, and Dior. It is believed that non-skiers now account 25% of visitors to the Alps, so it is not surprising that the options for retail and dining continue to grow. But for those that are ski fanatics, it boasts over 600km of pistes in the Trois Vallées and it has the prestigious status of the world’s most extensive ski area in the world.

Invest in Life at the Top Buyers need to weigh up multiple factors when deciding where to purchase a ski home. Advanced skiers may prioritise altitude to maximise snow reliability throughout the season, whilst families with beginners may consider a dual season resort with a broader range of facilities, which Courchevel 1850 offers in abundance. Dubbed the St Tropez of winter sports, Courchevel is ranked number 2 in Savills’ Ultra Prime Top 10, offering €31,400 per square metre. The Alps remain the world’s most internationally invested ski market and ski property typically yields between 1.5 and 2% net. The 1.5 million tourist overnight stays in Courchevel are made up by an increasingly diverse set of nationalities, with unsurprisingly the French in poll position, followed by Swiss, Brits, and visitors from Belgium and Brazil.* Russians earmarked Courchevel as their Alpine resort of choice in the late 1990s, but that market has diminished in recent years.

The Residences are supported by Six Senses world-renowned service team dedicated to offering an extensive range of service.

Property - Six Senses Residences Courchevel

Dual Season Resorts

Changing Demographics in the Ski Industry

The ski industry faces a challenging future due to climate change, with poor season starts to extreme weather conditions, skiers and snowboarders are finding it harder to predict the best time to hit the slopes. Unreliable ski seasons are being countered by alternative infrastructure in order to make resorts attractive all-year round, including facilities such as Aquamotion Park in Courchevel Moriond. However, this season took everyone by surprise with a winter wonderland arriving before Christmas. The volume of money now being invested into new projects and infrastructure is testament to confidence in the future of the mountain economy. There have been a multitude of upgrades over the last five years, including new snow making system, ski lifts being replaced and modernised, and new night sledging in Moriond; and a joint bid has been submitted with Meribel to host the 2023 Ski World Cup*. The Women’s World Cup in December 2017 boasted not only a giant slalom but a dual slalom, proving Courchevel’s strength in hosting largescale competitions.

Skiing and winter sports attracted 400 million visitors worldwide in 2016, and the Alps still attracts the majority of global ski visits (43%), and France now attracts more skiers than the United States. Rising income in key emerging skier source markets, such as China, Poland, Argentina, Slovakia, and Brazil may increase participation in skiing, but markets with limited domestic skiing still matter, such as the UK, Germany and the Netherlands as they are most likely to buy a base away from home. With the baby boomer generation at the upper end of the skiing age, Generation Y (20-35 year olds) is growing in importance with Generation Z (under 19s) close behind, therefore winter music festivals are now a staple, along with board parks.*

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Alpine Aesthetics The Residences’ interiors, designed by Alain Foeillet, carefully blend contemporary style with traditional mountain influences that celebrate the alpine aesthetic. Inspired by the natural environment, the apartments feature timber panelling, beams, stone and beautiful organic materials. Each apartment can be offered fully

Dubbed the St Tropez of winter sports, Courchevel is ranked number 2 in Savills’ Ultra Prime Top 10, offering €31,400 per square metre.

Sky-high

LIVING IN DUBAI International luxury living is redefined at The Royal Atlantis Resort & Residences. This elegant haven sits high up above the waters of the Arabian Gulf, offering exceptional views of the Dubai skyline. Residents enjoy their own private entrance, access to luscious gardens and multi-level sky pools as well as Michelin-starred restaurants. The Royal Atlantis Residences will create an unparalleled haven and the perfect place to call home. The Royal Atlantis Residences include a selection of two, three, four and five bedroom apartments, sky courts, penthouses and garden suites with prices from â&#x201A;Ź1,550,750 (AED 6,995,000). For further information please contact Knight Frank:+971 4 426 2888 | theroyalatlantis@knightfrank.com

L I V E T H E D R E A M , T O D A Y, T O M O R R O W, O R F O R E V E R . w w w. t h e r o y a l a t l a n t i s r e s i d e n c e s . c o m Disclaimer: The information contained herein does not form part of an offer or contract. Prices correct at time of going to press and subject to availability and exchange rate. Computer generated images depict The Royal Atlantis and are indicative only. Knight Frank Middle East ORN: 11964 RERA permit: 10995

Property - Six Senses Residences Courchevel

The on-site Six Senses spa enables residents to relax after a day on the slopes. The Residences are designed by Alain Foeillet and blend contemporary with traditional mountain influences.

turn-key to enable the purchasers to move in straight away, these furniture packages are offered by award-winning Morpheus London. Additional features include the very latest security and technology, dedicated ski lockers, private car parking and storage caves. The on-site Six Senses Spa enables residents to unwind after a day on the slopes with holistic spa therapy. Wellness facilities include an indoor pool with a sauna and steam room, a relaxation lounge, juice bar, gym and fitness studio. A range of signature massages, restorative therapies, facials and body treatments are offered across five treatment rooms.

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Invest in You at Altitude Six Senses Residences Courchevel offers the antithesis of the traditional wine-fuelled and cheese laden ski trip, with the one of the only juice bars in Courchevel. Instead of needing a holiday after a ski trip, the Residences offers a sanctuary with the ultimate spa offering tailored to winter sports. This season, Six Senses Spa will offer the ultimate in rapid recovery. Dynamic compression boots and wearable electrotherapy device are just some of the ground-breaking body hacks used to boost circulation and accelerate muscle recovery. The development is located about 100 km from the airport of Chambéry Airport, 180km from Lyon

Saint-Exupéry Airport and 190km from Geneva Airport. It is also accessible via TGV and Eurostar. Alternatively, specialist aircraft can fly direct to the Altiport in Courchevel. Six Senses Residences Courchevel is a joint venture between Cain International and Promocour 1850 and has been developed in partnership with Six Senses. It is Six Senses’ first residential project in Europe and is the fully-serviced residential spa development in Courchevel.

Oxford or Harvard? Where do you want your child to go?

www.allenandjain.co.uk f.robinson@allenandjain.co.uk

Â© iStockphoto

WISE WORDS

Education - Allen & Jain

MANAGING THE FUTURE HNW and UHNW families have, for many years now, relied on some of the best wealth managers in the world to ensure that historical value is retained over time. Ben Allen, Founding Partner of Education Concierge Allen & Jain, argues that the best investment is often the one closest to home. Having spent more than half a decade dealing with Family Offices all over the world, it is interesting (or alarming, depending on perspective) to see the pattern of behaviour which is assumed to be a guaranteed formula for success. The ‘tried and tested’ formula tends to involve sending your child to boarding school and hoping that they will end up being able to make decisions about the use of vast quantities of capital. It is thought that the stiff upper lip, the deluge of traditions, and regular chapel attendance will provide teenagers with the best possible start in adult life. For a time, such an approach worked and served Britain, and the elites of the rest of the world, very well. But we now find ourselves in the 21st Century, not the 19th. The meaning of education has expanded far beyond the ability to be able to recite prayers or be able to eat your dinner with the correct etiquette. The world has changed. Business has changed. But the very top of British and Swiss education has not. They still think that the tried and tested is going to work in delivering the next generation of leaders. The reality is that nothing is further from the truth. A number of books, most famously Nick Duffell’s ‘The Making of Them’ have set out the major impacts that unsupported attendance at boarding school can have on mental health and emotional wellbeing. Really, we should not be that surprised. Schools are, by their very nature, impersonal. You are just another number amongst the thousands to have passed through those halls. It is exceedingly difficult to be remembered, and all too easy to be forgotten.

Competition People talk about the virtues of competition, and about the importance of learning how the world works. As a former international representative of Hong Kong in both swimming and debating,

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I am a big advocate of competition in the right environment. But boarding schools have too often taught people that it is easier to cheat than to actually win on your own merits. To loosely quote Rab Butler (former Chancellor of the Exchequer): at schools, people who are dishonest tend to get away with it. The real world is not so sympathetic to such tactics. This is only one example of the wider issue of boarding school competitive culture. How can institutions which pride themselves on tradition be able to teach 13-year-olds the values of innovation and critical thinking? These are the skills that will ensure your grandchildren are still well provided for. The reality is that top schools often fail to prepare their students for admission to a university, let alone the working world.

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The world has changed. Business has changed. But the very top of British and Swiss education has not.

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There is one final issue which it is important to be aware of when sending your children to a school away from home. One of the great strengths of the British grammar school system is that it mixes people from all different types of economic background. Gone are the days where it was business smart to be only surrounded by people like yourself. Excellent businessmen and businesswomen are more than happy to look to anywhere in order to obtain the best possible deal. Most people will not remember the content that they were taught in secondary education. But the soft skills they are meant to pick up should last them the rest of their lives. Private schools, without any

engagement in extracurricular or super curricular activities, can very quickly result in narrow thinking likely to make simple, prejudiced, mistakes.

University degree It is also important not to understate the importance of having a university degree in the modern world, and one which is compatible with individual preferences. It has become fashionable amongst the children of high net worth families to point to examples such as Bill Gates and Mark Zuckerberg as examples of people who managed to thrive without a college education. The inconvenient truth is that working hard is no longer good enough. Cardiff University produces a fantastic set of research called the ‘Skills and Employment Survey’ every 5 years. The next report is due to come out in the autumn, but the 2013 Report showed that 26% of all jobs in the United Kingdom had a minimum requirement of undergraduate education. Given the rise of jobs in the technology sectors, it would be very surprising if this figure does not surpass 30% when it is updated. This is a ridiculous quantity of jobs, with invaluable real-world experiences to offer, which are now no longer accessible without a university degree. Some families may wish to heap scorn on the idea of the inaccessible, for they have the utmost faith that throwing enough money at the right people is a solution. To be fair, it is a solution in the short term. But the world of commerce is not run on the fuel of family connections like it used to be. The only metric that matters is individual productivity, and trying to do a graduate job without the necessary skills provided by a good university degree is a recipe for a bad time. Perhaps for those people who are sceptical of the skills which can be taught by formal higher education, it is better to think about the problem

ÂŠ Faustin Tiyambaze

Education - Allen & Jain

like this: university study seems to have become a rite of passage for those who wish to consider themselves young adults. Some data sets suggest that the probability someone at the age of 17 passes through a higher education institution by the time they are 30 is as high as 49%. Universities are contained environments where teenagers are able to become young men and women, learning the importance of independent research, selfsufficiency, genuine responsibility and what it means to take ownership of a particular task. University graduates might not work harder than the average person. But they do work smarter. That advantage alone is enough.

Fostering Passion

The realities of university education do a lot to inform the Allen and Jain academic philosophy. One of the core tenants of the business is to make sure that people have had the opportunities to discover a subject that they are passionate about, and find the right environment to foster that passion. Many education consultants want to impress the need to do costly extracurriculars as something that will boost chances of success. The reality is, a university like Oxford, Cambridge, or the top London institutions, will discount any reference to playing for a football team or the fact that you were a school prefect charged with the enforcement of uniform codes. There might be a bit more leeway for such activity in the United States. But the margins have never been good enough Now we are in the age of the super curricular. Though this might sound like something I have just made up for a corny American Midwest TV commercial, the idea of a super curricular has been floating about in education circles for a while now.

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These are the placements or activities which have a direct link to the academic discipline that you wish to study at university. For the sake of argument, let’s take the example of someone who wishes to apply for Human, Social and Political Sciences at the University of Cambridge. What is likely to impress tutors more, house colours in a sport or a welldesigned placement in the House of Commons, shadowing the Parliamentary Assistant to an MP? The answer is obvious. It is important to view the education of future family leaders as a very shrewd investment with a potentially massive payoff. As important as it is to see the intrinsic value of education, make no mistake as to how savvy a business decision it is to have a firm which is able to tailor an individual plan of action and provide the support necessary in order to make the best of secondary education away from home. It is important to make sure that proper plans are made to ensure family offices stay competitive as we delve deeper into the 4th Industrial Revolution. Hot air and an ability to mindlessly believe in whatever project you set your mind to is not the sort of smart management that fills people with confidence. Making sure the future does not repeat the mistakes of the past is going to be a critical battleground in the long-term future of high net worth families.

Ben Allen - Founding Partner Allen & Jain Consulting Ltd. b.allen@allenandjain.co.uk

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It is important to view the education of future family leaders as a very shrewd investment with a potentially massive payoff.

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ÂŠ iStock

Art - Falcon Fine Art

Art financing presents an alternative â&#x20AC;&#x201C;allowing art collectors to diversify their investment portfolios by raising finance against an artwork; enabling them to invest in other assets; or even collect more art, without the need to reach into their own pockets or dip into other investments.

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TIME FOR CHANGE Art is a prestigious asset. Yet it also traps cash, which means that, for too long, selling an artwork has been the only way for art collectors to access its monetary value. Tim Hunter, Vice President at Falcon Fine Art, explores how the global rise of art financing provides an alternative route.

Art has an enduring appeal and for those lucky enough to own it and even form a collection it becomes a passion. Often the aesthetic pleasure can far outweigh the monetary value. Nevertheless great art is expensive and collections can tie up large amounts of money, which can present problems. For too long, the only option for many art collectors, who wish to access the money tied up in their art collections, has been to sell – an unattractive prospect to those who love, and would rather keep, their art. Now there is an alternative.

Selling art Art is an illiquid asset, as those who have tried to sell it will understand. The dizzying heights of record sales such as Leonardo’s Salvator Mundi last year – which sold for US$450 million – can be misleading, and even those in possession of valuable artworks might have trouble finding the right buyer at the right time. Certainly, the art market can be fickle – dictated by tastes and trends that make sales difficult to predict. Nor is it just taste that impacts the value of an artwork at sale. Its condition, its exhibition history and provenance are all crucially important to its success in the market. Of course, a collector might not want to sell at all. Art collecting is first and foremost a passion, and however much a collector might like to tap into the monetary value of an artwork, they may not wish to part with it to do so.

The art financing alternative Art financing presents an alternative –allowing art collectors to diversify their investment portfolios by raising finance against an artwork; enabling them to invest in other assets; or even collect more art, without the need to reach into their own pockets or dip into other investments. It is a smart wealth management strategy. Does it sound familiar? It is. Not only is collateralized lending fairly common among other assets (real estate, for instance), the art financing industry itself is well established in the US, particularly in New York. Now, the rest of the world is picking up on the trend. Private banks, family offices and certain auction houses are increasingly providing art financing solutions – or helping their clients access such solutions through external parties. Furthermore, firms focusing solely on art backed lending are emerging, creating bespoke arrangements on a case-by-case basis. They do not require collectors to be existing clients, they do not ask for other assets and, crucially, do not require the collector to sell. Art financing has already successfully spread to the UK – where firms such as Falcon Fine Art (FFA) have had a positive reception. Since being established in 2014, FFA has been at the forefront of spreading art

financing across Europe – servicing clients throughout the Continent, as well as completing deals in both Ireland and Belgium. The appetite for art financing, however, does not stop there. Indeed, with Asia accounting for a 40.5% share of world auction sales – quantified at US$10.71 billion according to the latest TEFAF Art Market Report – the demand for art-backed loans is growing. In fact, FFA is looking to complete a series of deals in Hong Kong and Singapore this year.

A burgeoning trend So why is art financing – an established and popular industry in the US – gaining traction globally? For one, art financing has become a more widely available offering from select specialist financiers. The ability to offer art financing solutions requires the combination of both art and financing expertise: a rare combination. Art is a complicated asset – it is portable, and fragile, and can be both difficult to value and authenticate – and the art market, is even more complex. Many traditional and successful financiers have found they lack the specialist art knowledge required to evaluate opportunities, often wasting time and money pursuing deals that rarely reach a successful conclusion. On the other hand, many institutions that do have the adequate art expertise have struggled to create the sophisticated financing structures required for a deal. As such, there are only a handful of institutions with the incentive and capability to provide art financing, and most of those that do exist have stuck to the US, where the market is already established. Secondly, many collectors who want to finance their artworks, also want to enjoy their art – keeping pieces on their walls throughout the financing period. Previously, this was only possible in certain cases in the US, but now firms such as FFA are able to offer this service in other jurisdictions. Finally, the availability of art financing spreads as its client-base expands. Certainly, it is not just connoisseurs who are increasingly attracted to it – many family trusts are also exploring such solutions; a sector where FFA has already experiencing increased demand. With the spread of art finance there is no longer any need for collectors to tie up their wealth in their art collections. They can still enjoy their art, and indeed acquire new works, while managing their assets in the most effective way.

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The ability to offer art financing solutions requires the combination of both art and financing expertise: a rare combination.

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Insurance - CKRe Ltd.

ARE YOU BEING

COVERED? Tom Montgomery takes a light-hearted but insightful look at insurance, the pitfalls to avoid and how a family and its family office can navigate the complexities and options they have when choosing and maintaining their insurance coverage. Now let’s be honest about this; insurance is possibly the dullest subject out there. Everyone hates paying for insurance, and insurance brokers are as popular as estate agents or the tax man! However, everyone needs insurance and everything is insurable. In the Lloyds of London market we have insured everything from Pamela Andersons’ breast implants and Jennifer Lopez’s bottom, to Elon Musk’s recent space rocket launch, to the most mundane such as warehouses in Northamptonshire and fleets of white vans.

Family Office Insurance Underinsured As a family and family office you all need to work out your risk appetite and how you’re going

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to structure your insurance and risk management. This will save you money on your insurance premium and give you reassurance that you are covered if a disaster happens. There’s one thing that most UHNW families have in common, and that is they’re underinsured. This is increasingly true as asset values and personal liability risks increase. Industry stats in Europe estimate that seven of ten luxury homes are underinsured. Furthermore, many UHNWI don’t adjust their coverage limits in accordance with changes in the value of their assets or risks. Recently this was demonstrated by a new client who had been let down by his previous insurance company. The old insurers had not updated the

values of his classic cars for about a decade, and over the past twenty years the prices of classic cars, often seen as alternative assets now, have risen hugely. All this came to an (expensive) head when he was manoeuvring a rare Ferrari around his garage and reversed into his classic Aston Martin DB3. Altogether both cars were undervalued by almost US$700,000 which he couldn’t claim due to their true value not being stated on the policy. The global recession, which hit many wealthy insured families hard, has transformed the approach these families take to maintaining their financial security. We have found that clients have not been very satisfied (or happy) with the performance of their bond portfolios or their

In the Lloyds of London market we have insured everything from Pamela Anderson’s breast implants and Jennifer Lopez’s bottom, to Elon Musk’s recent space rocket launch, to the most mundane such as warehouses in Northamptonshire and fleets of white vans.

Family Office Investor

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It is much like the insurance myth of the man in New York who insured his most expensive cigars for primary risk, that is, fire. He then proceeded to smoke them all, and claim the value of the cigars on his insurance, as they had, of course, gone up in smoke!

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stock market investments so they reinvigorated their financial returns by taking their passion for collecting and using that as an investment tool. In the past, most insurance companies would consider these simple hobbies, but in recent years what we’re seeing is that people are investing in art and wine (and other luxury items), and insurance companies are now placing them into an asset class. As a result, in their investment and insurance life, individuals and families need to look at, for example, their wine collection and investigate whether it has depreciated – and I don’t mean by drinking it!! Drinking it is very sadly not a recognised insurance risk. It is much like the insurance myth of the man in New York who insured his most expensive cigars for primary risk, that is, fire. He then proceeded to smoke them all, and claim the value of the cigars on his insurance, as they had, of course, gone up in smoke! Property values are always index linked up every year, and every five years the insurer will ask for an up-to-date valuation on your jewellery and watch portfolio. However, your vehicles, yachts, planes, and all other assets (such as wine collections, sporting goods, clothes and so on) will need to be monitored by someone in your family office. One of their most important tasks will be get each item or collection appraised as to their worth and, in turn, up-date your insurance policy so that if there is a claim the underwriter has the right value to return to you! Family Offices face unique insurance challenges and tend to gravitate towards different insurance products. Wealthy families have relatively more complicated risk management needs. The real risk might be over-insuring against minor threats and underinsuring against major ones. The benefits of an ultra-high-net-worth insurance policy are largely centred on smoothing out the relationship between needs and coverage. Another key issue that is often overlooked (but not if your broker is doing his job correctly) is protection against incidents, such as theft by household employees. I have one family who often leave 50€ notes around their houses to test whether their employees are trustworthy. In this litigious world that we live in, a family should cover themselves against a legal suit from an employee or service agency. This is known as Employment Practices Liability Coverage, or, sometimes, Nanny Insurance. Such a suit was actually brought against another client of mine, in the South of France, two winters ago. In this case, the cleaners had a local illegal robbery racket going. Over the course of a winter they managed to clean out all the out houses, and pool house, as well as take all the garden ornaments, heavy machinery, pathway ornaments

I have one family who often leave 50€ notes around their houses to test whether their employees are trustworthy.

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Insurance - CKRe Ltd.

and anything else of value. However, they really outdid themselves when a cleaner ‘tripped’ moving of one of the larger pot plants and then tried to sue the family for her ‘accident’. Thankfully these over excessive ‘cleaners’ who tried to completely clean the family out are now serving time.

How to save money with your insurance? So, we’ve looked at why you need insurance, a few of the pitfalls, but now we should look at how you save money with your insurance premiums. In fact, through careful management we managed to dramatically reduce what one of my clients he was paying by avoiding the pitfalls I’m about to tell you. The easiest way to quickly save money is by consolidating all your insurance to one insurance company. There is then little chance you will double up on any insurance coverage. I had one client who had 49 different insurance policies. We managed to reduce them down to 8. Ironically, was the same number of husbands she’d had over the years!

Excesses: One of the first questions I always ask my clients is: what would they claim? Would they make a claim only if their house burnt down? Or would they like a reactive policy that pays for every lost earring, red wine stain, and/or minor bit of damage? This is where playing with the excess on your policy really pays. If you fall into the first category, and would only want to use your insurance when you lose everything, then you’d have to work out when you would want the insurance to kick in. On one of my client’s property I have a £20,000 excess, as this is what they would pay out of their own pocket for any damage, without it majorly affecting them. However, if the house was destroyed, the insurance company would pay to build them a new one. This dramatically reduces the annual premium they pay on my insurance. However, if you want the insurance to cover every incident however minor, then go with a minor excess of £250. In fact, sometimes playing with the excess is the only way to get insured. One of my higher tariff oligarchs has a 17 year old son who passed his driving test in the UK a few months ago. He, of course, bought his son a Porsche GT3, a vehicle notable for two features: 1) it is worth about £200,000, and 2) it is one of the fastest production vehicles in the world. In most cases, nobody in their right mind would ever consider insuring such a car for someone so young. However, through some very careful negotiations, we managed to get

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the underwriters to accept the risk by having the excess set at 20% of the value of the car. Fingers crossed, he still hasn’t crashed the Porsche to date!

Watch the Broker! So that’s one way to save money on your insurance premium. Another is to check the paperwork when the insurance invoice comes in. The insurance broker can make his money through the commissions he earns from the insurance carrier he places the policy. Normally the commission they receive is from 10% to 40% of the value of the insurance policy. Do check they’re not putting any other fees on top of their commission earnings. You could look to negotiate a fee and make sure the broker gives you the net premium from the insurer, which would then give you more control. Also, as I’m sure most of you are aware, have your offices and assets under a tax efficient company structure. Doing so will mean that you wouldn’t be paying any insurance tax, which in some countries can be 25% on top of the premium.

Family Office Management Liability Issues to Consider As you well know, family offices combine financial, philanthropic, legal, and administrative operations and help ensure that family objectives are achieved from generation to generation. However, these responsibilities create a range of liability exposures for the family office executives and professional staff. A family office manager’s exposures rival those of corporate directors and officers. Family office executives perform many services commonly associated with trust operations and assume those duties and obligations as well.

Protective Measures – Indemnification and Insurance Often the best protection a family office manager can employ is to obtain indemnification provided by the family office itself. However, even written indemnification is not without its limitations. Insurance programs, written broadly enough, will also help protect the family office professional against director’s and officer’s liability, professional errors and omissions, exposures, and employment practices risks. In addition, appropriate insurance coverage can complement existing indemnification provisions —

in some circumstances exceed them — and absorb indemnification costs assumed by the family office.

Cyber Cyber is a major concern for ALL of us, thanks in large part to smart home devices that are susceptible to hacking. Hackers can almost create an insightful little electronic journal of you and your life. Through the network of devices people carry and use, they can actually map and understand the pattern of your lifestyle based upon when your lights go on and off, when your heat goes up and down, and on top of that, you’ve got your kids out there in a real-time moment posting ‘Greetings from Hawaii.’ And since so many families employ domestic staff, it is often forgotten that they may have your WiFi password. If the nanny has it, and then you let the nanny go, you need to remember to change the password. Most families I’ve dealt with don’t have a protocol for on-boarding an employee or for firing an employee. Usually it’s no more than they’re fired and they leave. The problem is they’re not put through the same rigorous procedures that happen when someone leaves a firm. Firms take away their company electronics and change their corporate access codes. Cyber is definitely something you have to be dealing with, whether it’s coverage under the policy for recreating property after a malware attack, or protection against unauthorized electronic funds transfer. Check your policy for cyber coverage; it is becoming more standard on them these days, but not all policies cover it. One area cyber is definitely not covered is on superyachts, and this is something I’m currently trying to resolve in the market. Yachts are extensively automated these days, and a few yachts (and we’re taking yachts worth in excess of $300m) have even been remotely controlled by hackers. The prospect of untold havoc happening should a ‘black hat’ crash one these huge yachts into a port or into another yacht is a terrifying one. Thankfully this hasn’t happened yet, but the exposure to the yacht owner or company could be in the billions. Hopefully, I’ll have this gap filled in the market soon. In summary, insurance and family offices can be a total bloody mind field, but if it’s looked after carefully and you form a good relationship with your insurer, so that they will fight your fights when a claim arises, and make sure you have little to no exposure whilst you and your a family go about your business and pleasure, then it can be simple.

Tom Montgomery, CKRe Ltd – Private Clients Director -tomm@ckre.co.uk

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Buying a Superyacht

Buying a Superyacht T E N

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T I P S

F O R

S M O O T H

T R A N S A C T I O N

Superyacht lawyer Anouch Sedef gives ten top tips to ensure that you are buying the right superyacht at the right price.

he decision to purchase a yacht often develops after someone has experienced several charters and the idea of becoming a superyacht owner becomes attractive and desirable. When it comes to a first purchase you have the choice between buying an existing superyacht or a “yet to be built one”, the latter being a much longer process and often the choice of an experienced superyacht owner. For the purpose of this article, we will discuss the purchase of an existing superyacht.

SUPERYACHT SURVEY It is essential that you carry out a survey of the yacht prior to its purchase. The memorandum of agreement should provide for this and should give you the opportunity to cancel the purchase and/or deduct any necessary repairs from the purchase price should the survey results be not satisfactory.

SUPERYACHT SEA TRIALS Similarly, the memorandum of agreement should provide for sea trials so that your representative and/or captain can assess whether the yacht is in good functioning order. Again, the agreement should provide for you the ability to cancel/ terminate the purchase.

PRIOR TO SIGNING AN AGREEMENT You should ensure that the purchase agreement is drafted and reviewed by a superyacht lawyer in view of all the superyacht specifications and details of the purchase. Each sale and purchase is specific to the yacht, its status, flag and owner. It is therefore important to ensure that these are taken into account when drafting the agreement so that you are appropriately protected.

WHAT ARE YOU BUYING? It is important to be clear on what it is exactly you are buying and the memorandum of agreement should reflect this with exactness and clarity. Are you buying the superyacht free of any content? Or does the yacht price include tenders, toys, art, and any accessories which form part of the interior? It is crucial for this purpose that the parties agree on an inventory so that there is no ambiguity. Such an inventory can be prepared by the yacht’s captain who would then submit the list to each party. When purchasing the yacht, you also need to decide whether or not to retain the crew and the captain. If yes, then their crew agreements should be checked and you should ensure that there is no outstanding wages and/or expenses due. Additionally, your lawyer should enquire with the seller’s lawyer as to whether there is any ongoing or pending grievance you should be aware of with either crew or passenger. A similar exercise should be carried out for the superyacht service suppliers’ agreement.

PURCHASE PRICE It is important to ascertain whether any taxes are due upon purchase and to ensure that the purchase price agreed between the parties is inclusive of all and any taxes, VAT, duties which may be applicable to the superyacht. Your memorandum of agreement should also provide for the yacht to be sold free of any encumbrance. DOCUMENTATION When acquiring an existing superyacht, it is vital to ensure that as part of the completion you receive all the necessary and mandatory yacht documentation linked to its registration which should also show international convention compliance. These documents should be carefully checked by your superyacht lawyer so as to ensure that (a) the yacht complies with the international maritime conventions currently in force and (b) you have the necessary documents to register the yacht to the chosen flag (whether it is same or a different one) upon acquisition.

INSURANCE You should arrange for your superyacht and crew to be insured in advance of the purchase so that all your covers are in place upon completion of the purchase. It is essential that you seek advice from your lawyer, but also an insurance broker, regarding essential cover: Hull & Machinery insurance which will cover the value of the yacht in the event of total loss, Protection and Indemnity insurance for third party liabilities and Medical and Personal Accident cover for your crew. You may also wish to consider cover for Kidnapping & Ransom, and a full health cover for your crew.

COMPLETION & DELIVERY OF THE SUPERYACHT The completion of a purchase and the delivery of the superyacht often take place simultaneously. There are obviously several conditions to fulfil to be able to complete, such as receipt of all the corporate and regulatory documents, transfer of the purchase price into an escrow account ready to be paid to the seller, having ready all original documents ready to be handed to the purchaser, and also having the execution of the protocol of delivery and acceptance confirming safe receipt of the yacht ready to be handed out. All these actions take place at the same time so that you take delivery of the yacht at the same time as the seller receives the purchase funds. This last step should be prepared and executed properly. At the same time registration of your newly acquired yacht and insurance should come into place.

FLAG REGISTRATION Your superyacht lawyer should arrange for the yacht to be registered with the appropriate flag at the time of completion and delivery. Your lawyer will be able to advise you on the correct procedure and the most appropriate flag vis-à-vis your situation and ownership structure.

Anouch Sedef- Partner Meyer Avocats-sedef@meyer-avocats.ch

PRELIMINARY STEPS Prior to committing to any purchase and signing any agreement, you should ensure that you have had seen all the superyacht’s specifications and details which include, but are not restricted to, knowing where the yacht is registered, whether there is a berth available with it, who currently owns the yacht, how many crew is onboard, what the yearly running costs total, whether the yacht does charters and, if does offer charters, what is its VAT status? Once you have all the details, it is recommended you speak to your superyacht lawyer to discuss any prepurchase arrangements which would be necessary to enable you to safely purchase the superyacht.

When buying a superyacht you normally enter into a memorandum of agreement with the seller. An approved standard agreement is available to every broker member of the MYBA Association. However, prior to signing such an agreement, you should ensure that it has been reviewed by your superyacht lawyer. Indeed, a standard agreement is often not sufficient and requires to be tailored to your specific purchase. Here are some key points in the purchasing process:

Monaco is a truly global principality, and a third of inhabitants are millionaires. The principality is already known in Europe as the prime destination for the super-rich, and the best place to do business. Recently, Monaco has been turning its gaze east and investing more heavily in Asia. Journalist Laura Nineham talks to some prominent Monegasques and hears why Monaco’s connection to Asia is increasing and becoming stronger

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ince the 19th century, Monaco has been a magnet for entrepreneurs and visionaries and its Princes have been able – each in their own way – to offer to their country a visibility and a prestige which much larger countries never enjoyed to this day,” explained Benoit Badufle, Managing Director of the Monaco Government Tourist Board in Asia. Already there are a number of links between Monaco and Asia that span a number of industries such as finance, luxury lifestyle, real estate, yachting and the environment. “Monaco offers Asian entrepreneurs the opportunity to benefit from a prestigious, stable and safe location in Europe as well as being a buoyant economic hub at the heart of Europe,” said Michel Dotta, Chairman of the

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Monaco Economic Board (MEB). Many Monegasque individuals and corporations already invest in Asia, Badufle said, adding: “The Prince Albert II of Monaco foundation has a presence in Singapore and has been electing and supporting numerous projects of development in Asia since it was incepted in 2006.” To develop these links, Monaco is investing more in Asia to strengthen its presence and attract business. “We are looking for investors in the fields of innovation, new technologies and sustainable development as we believe these are vital fields in the years to come,” outlined Dotta. “This is combined with the sectors which already have depth and strength such as finance & insurance, corporate services, hospitality and retail, real estate and construction, and international trade.”

Monaco

ASIAN VISION

Monaco

Left: MonacoTech was inaugurated by Prince Albert II of Monaco and Xavier Niel (r), owner of Monaco Telecom in November 2018

Initiatives

The MEB believes Asia will be attracted to the political, social and fiscal stability of Monaco. Dotta added: “Being situated in the heart of the Mediterranean basin and part of the Euro Zone, Monaco is also a gateway to Africa, and has international influence abroad through an extensive diplomatic and consular corps.” Of course, deeper connections with Asia will benefit the region, too. “Many parts of Asia have the same challenges as Monaco,” highlighted Espen Øino, superyacht designer and Vice-President of Cluster Yachting Monaco. “I was in China recently and many of those challenges with big Chinese cities we have solved in Monaco, although the scale is different. Being able to contribute to the development of Asia is another benefit of having a stronger presence there. “ It’s not all about business: Monaco is also luring more tourists from the region. “The Government of Monaco has been showing its interest for Asia and Asian people by opening tourist and convention offices in south east Asia, China, India and Australia which cover most of the countries of this geographical ensemble,” Badufle explained. “Monaco is probably the most international place in continental Europe and is used to receive and welcome people from the world over,” he added. “People are kind to foreign visitors in Monaco, where 75% of the inhabitants are foreigners themselves, and English is spoken by all,” he added. In fact, the most recent census data shows there are 140 different nationalities living in Monaco. “This versatility is reflected in its tourist offering which is one of the most varied in Europe,” Badufle continued. “One of the best examples is the Chinese digital payments and credit cards which are widely available in retail and hotels in Monaco.” This understanding of Monaco’s appeal was echoed by Øino, who added that the gambling establishments of Monte Carlo have proven a particular draw for Asian tourists. “I think the shopping is also popular,” he said. “We

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©Jim Martin

It will be achieved by a number of initiatives in Asia, some of which have already begun. “This is the second year running that we are going to Singapore Yacht Show. There is a Monaco Week every year in Asia by our Ambassador of Monaco to China, HE Mrs Fautrier and we are also thinking of taking a trade mission early September to Beijing,” said Dotta. “In the midterm, the aim is to attract new Asian entrepreneurs, business owners and businessmen to come and do business here, and also consider living and working from here.” The MEB’s ultimate aim is to create new business and trade links and build bridges between Asia and Monaco. But since space in Monaco is limited, the MEB is working to attract Asia businesses looking for highly skilled workers rather than square metres. “This is why we have just set up MonacoTech – a public-

private venture which offers 20 start-ups the chance to grow, get funding and benefit from what its director calls ‘Brand Monaco’,” Dotta added. “Headed by the Monaco government and Xavier Niel, owner of Monaco Telecom, it is housed in an 820 square meter office that holds 50 desks and two ‘fab labs’ – rooms with access to modern means of invention, according to the MIT project on which the term was founded.” There are many things that make Monaco attractive to Asia. “‘Monaco may be famous for being a glamorous place,” said Dotta, “but if you look more closely you’ll discover a balanced and diversified economy, thanks to the vision of a succession of Princes of Monaco.” This diversity is shown in the way its industries contribute to GDP: 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 lastly transport/storage 3.5%. “It’s a sustainable model due, in part, to the fact Monaco has a debt-free economy with reserve funds equal to four years of state expenditure - two in liquid assets - and a balanced €1 billion budget of which 30% on average has been invested in infrastructure and amenities over the last 50 years,” explained Dotta.

Attractions

Above and left: China Night during the Monaco Yacht Show is one initiative that welcomes select guests from China, as well as European companies working in Asia. The cocktail reception held during the show celebrates the relationship between Monaco and China.

www.colibri.mc

FOR ECOFRIENDLY YACHTING

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Monaco

have a good selection of high end shops, including fashion and jewellery. It’s one of the best shopping destinations on the Cote d’Azur.”

Residency

Asian business leaders looking to base themselves in Europe are likely to consider Monaco for its unique quality of life. “It’s not just about the mild climate and strategic location between sea and mountains,” said Dotta. “Monaco is also a multi-cultural place where 38,000 inhabitants from 140 nationalities live in harmony and who enjoy excellent health care and education systems, and a packed cultural and social calendar of international events. Of course, Monaco’s reputation as one of the safest destinations in the world mustn’t be ignored. With one policeman per 70 residents and a highly effective CCTV system, Monaco is known to have some of the lowest levels of crime – and it’s a major reason why wealthy Asian tourists choose to visit. “Monaco is one of the rare places in the Cote d’Azur where you can walk around wearing multi-million dollar jewellery or drive a super expensive car, and not be afraid of being harassed,” Øino added. The increasing popularity of Monaco’s hospitality industry with Asia’s tourists hasn’t been capitalised by the world of luxury yachting just yet – but the tide is turning. Any visitor at the Monaco Yacht Show will notice the presence of Asian companies. China Night, for example, is just one initiative that welcomes select guests from China, as well as European companies working in Asia. A cocktail reception held during the show celebrates the relationship between Monaco and these guests. In turn, the Monaco Yacht Show has been developing links in China to promote the event. This involves working alongside regional media, as well as industry, to highlight the show and invite visitors to Monaco. “I think many parts of the luxury markets like high end fashion and cars have already taken off in Asia, but we’re waiting for it to happen with yachting and we want to be there when it does,” concluded Øino.

Top: Gambling establishments such as the Casino Monte-Carlo have proven a particular draw for Asian tourists

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Left: Monaco has a good seleciotn of high end shops and is one of the best shopping destinations on the Cote d’Azur.

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LIFESTYLE

39 Monte-Carlo

A WEEK IN THE LIFE OF

CHRISTOPHE BORS MANAGING DIRECTOR AT 39 MONTE-CARLO. Christophe Bors holds an extensive career in combining management with aesthetics. His career began with the Ritz Carlton Laguna Niguel hotel in Dana Point, USA as the Assistant Manager. Shortly after, Christophe moved to Monte-Carlo and (excluding a year in Paris working for Clive Christian France) has remained in Monaco ever since. He has worked for the Columbus Hôtel, the Monte-Carlo Société des Bains de Mer, Fashion for Floors and the Yacht Needs app, in managerial positions such as Director of New Business Development, Store Director of Fashion for Floors and most recently Sales Director for France and Monaco for the Yacht Needs app. Thirty-Nine has been home to Bors for over a year. He finds great enjoyment in managing his team and collectively working together to continuously uphold the highest standard of services for its members.

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I start each week with a tour of the club to greet the members and my colleagues. I check with them that everything is ok and running smoothly and enquire about the past weekend’s events. If there are any questions or concerns, I address them right away. Afterwards, I check the current finances of the club and go through all of my emails. Throughout the day I give guided tours of the club to perspective members, and attend various meetings regarding partnerships and sponsorships. I tend to any issues with suppliers, electricity and generally any happenings with the club. After work, if I don’t have an event or meeting to attend, I go work out in our gym. Depending on the week, I try to exercise at least 3 times a week. I like to do a range of workouts, everything from cardio to weights, spinning, pilates and boxing. We are truly lucky to have such an incredible gym available for us to utilise. Training amongst the top athletes of the world is both inspiring and motivating. Meetings are wide ranging. I especially work frequently with our partners, most often with the goal of enhancing our members’ experiences. Once a week I organise a meeting with each department manager to speak on the specifics of their division - the various events, issues, targets achieved,

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and general finances. These weekly meetings are paramount to the success of the club for numerous reasons. The main being that, due to the size of the club and the sheer volume of services we offer to our members, there are a million details to comb through on a daily basis. We, of course, strive to offer the very best to our members and have set an exceptional standard for how the club is run. Luckily, we have been fortunate to gather a hardworking, talented, diverse, and (most importantly) open and friendly group of people, and it is a real pleasure to work together towards a common goal. I often attend cocktails to act as a representative for Thirty Nine within and around Monaco. Several times a week we have events held at the club, I, of course, attend these to speak with both members and my colleagues. For example, every Thursday we organise ‘Shaken not Stirred’ evenings. There is always an interesting mix of people in attendance and we are all generally guaranteed to have a good time - the food is delicious and our bartender creates a new cocktail of the evening each week. In addition, every Sunday we hold a Sunday Roast. It has become a classic for us and I enjoy speaking with our members every week within this relaxed atmosphere. To accompany the home away from home environment, the Chef serves traditional

English dishes such as beef, Yorkshire puddings, green beans and potatoes. It is an ideal Sunday meal, surrounded by our members and colleagues, who have quickly become my closest friends. Thirty Nine’s founder, Ross Beattie, and I travel frequently to attend various events. For example, just a few weeks ago we flew to Singapore for an international business conference to present the club. These travels are immensely important both for Thirty Nine and for Ross and I, as we spread the word about the club, get a first-hand look at world-class venues which continuously inspire us and, of course, for networking. Travel is extremely important as it opens my mind to new worlds and people. Whenever I come back from a trip, whether it be for business or leisure, I always have a fresh view on my work. This is paramount in upholding the high standard of service at Thirty Nine and allows us to continuously offer our members new and exciting opportunities, events, etc. I look forward to every new day because each one differs from the previous. There is always something new going on both within the club and Monaco, which keeps my work, and subsequently my life, fresh and exciting.

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Clockwise from top right: 39 Monte-Carlo’s bar during a busy night; Bors with 39’s founder Ross Beattie and 39’s master colourist Kevin; at 39’s Christmas party with tennis player Tomas Berdych and finding some time to reflect on top of the Marine Bay Sands in Singapore

Yachts - Arrow460 Granturismo

GOOD IN THE WET Premium car companies have long fancied their chances on water. Aston Martin, Bugatti, Porsche and Lexus are just some that have recently got their feet wet. But the pioneer has been Mercedes-Benz, and it has really dived in at the deep

ÂŠ Lap Quagli

end, says journalist John Vildare.

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Arrow460 is the first model from Silver Arrows Marine which was established to conceive and build luxury motor yachts that draw on the design inspiration, innovative spirit and quality processes of Mercedes-Benz.

Yachts - Arrow460 Granturismo

n engine, a steering wheel and the freedom to go where you please, when you please – no, not just on the open road but in the open sea, too. No one has embraced that thought more than premium car manufacturers. In the world of speedboats and luxury motor yachts, they have really been making a splash. Cars and boats have a lot more in common than just that engine and steering wheel (helm, please…). Sleek, sporty styling. High performance. Rewarding handling. Hand-crafted luxury. Designer-label interiors. The latest technologies for all manner of safety, comfort and convenience features. All these are must-have qualities whether on land or at sea. No wonder then that car-boat tie-ups are nothing new. After all, automotive marketing departments love a brand extension into a lucrative new market. Aren’t all luxury boat owners luxury car owners? But recently this trend has exploded – and the world of motor yachts is now awash with names such as Bugatti, Aston Martin, Porsche and Lexus to mention just a few. At their best, car-branded boats epitomise the qualities that make the cars so desirable. The high performance and wood-and-leather appeal of the AM37 from Aston Martin and Quintessence Yachts reflects the sports cars perfectly. The oneoff Lexus Sport Boat is all about styling that evokes cars like its LFA supercar, just as the Niniette 66 from Bugatti and Palmer Johnson re-creates the look of the Bugatti Veyron. Dynamiq’s GTT 115

launched last year is said to bear the design stamp of Porsche. Brabus and Fisker are other automotive names that have attempted to blend car with boat. These offerings are all very different but they have one thing in common: they are following a lead set by Mercedes-Benz. Its design department, Mercedes-Benz Style, in partnership with Silver Arrows Marine, has rewritten the rulebook for building a yacht like a luxury car. And with most carbadged boats seemingly based on extant designs from established boat builders, no one yet has got near to matching it.

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With Mercedes-Benz Style we were able to take a fresh look at every aspect of the 14m motor yacht, and to do it from the perspective of a luxury car-maker.

”

The motor yacht that created this new market is the Arrow460-Granturismo, a unique symbiosis of the automotive and marine worlds that goes far beyond “badge engineering”. In many ways – and its elegant Mercedes coupe-like design is just one of them – it stands for everything Mercedes-Benz cars stand for, so much so that it has been dubbed the S-Class of the seas. Arrow460 is the first model from Silver Arrows Marine which was established to conceive and

build luxury motor yachts that draw on the design inspiration, innovative spirit and quality processes of the very best car-makers. And to do all this from scratch, in partnership with Mercedes-Benz Style. “For what we wanted to achieve – that is, something completely new and different among motor yachts – we had to start with a clean sheet of paper. We had lots of ideas but absolutely no preconceptions,” says Jacopo Spadolini, Silver Arrows Marine’s CEO. “With Mercedes-Benz Style we were able to take a fresh look at every aspect of the 14m motor yacht, and to do it from the perspective of a luxury car-maker. There is no veneer of car-like luxury here. Automotive influences, inspiration and best practices are intrinsic to the yacht’s fabric.” While Mercedes-Benz Style played a key role in the sleek design and innovative open-plan layout with its avant garde interior, the yacht’s seaworthiness was entrusted to renowned marine architects and engineers for the concept design. At the end the design was finalised by Mercedes-Benz and Silver Arrows Marine. But just like a Mercedes-Benz “grand tourer”, the Arrow460-Granturismo puts as much emphasis on refinement, comfort and handling ease as outright speed. And of course it is, as car road testers might say, “very good in the wet”. Paolo Bonaveri Silver Arrows Marine’s Global Marketing and Communication Directors adds: “We are flattered that so many great brands from the automotive world have seen what we and Mercedes-Benz have achieved together, and have come up with their own yachts. “But there is far more to creating a true synthesis of the best from the automotive and marine worlds than just putting on a badge or adding styling cues. The badge on Arrow460-Granturismo says Mercedes-Benz… and in every way it has earned the right to wear it.”

Left: The Arrow460 Granturismo. Botom (from left to right): Aston Martin’s AM37; Bugatti’s Niniette 66 and Lexus Sport Boat

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ÂŠ Lap Quagli

Mercedes-Benz Style, in partnership with Silver Arrows Marine, has rewritten the rulebook for building a yacht like a luxury car.

Event - Jumping International of Momte-Carlo

LONGINES GLOBAL CHAMPIONS TOUR

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J U M P I N G I N T E R N AT I O N A L O F M O N T E - C A R L O

ÂŠ Mario Grassa/LGCT

he spectacular back-drop of Port Hercules and the iconic Princeâ&#x20AC;&#x2122;s Palace in Monaco will once again provide the venue for the Longines Global Champions Tour season. This year marks the 13th anniversary of the Jumping International of Monte-Carlo. With Charlotte Casiraghi as patron, the three-day feast of top-class show jumping competition brings together professional and amateur riders from around the world in a highly competitive yet convivial event. The Jumping International of Monte-Carlo will take place on 28th - 30th June Setting up an entire equestrian event in the middle of a busy harbour is a challenge. The waterfront is transformed into a luxurious equine venue, requiring the hauling in of vast quantities of specialised sand for the competition surface and the transformation of the dock into elegant stabling. Seating around the main arena will host the great and the good, including the grand family names and crowned heads of state all wishing to witness the highest level of equine competition. Alongside the arena, spectators can visit the paddock and stables, browse the event village and possibly meet one of the championshipâ&#x20AC;&#x2122;s great riders.

Event - British Polo Day

GLOBAL RELATIONSHIP BUILDING W I T H B R I T I S H P O L O D AY

Having hosted over 65 British Polo Days in 16 countries spread over five continents British Polo Day is the’ King of Relationship Building’ Some say you’re only as powerful as your network, and that is true. A business network should be a qualified, selective group of people we can count on, tap into and rely on for support, direction and insight. We also have to find the right balance of giving and taking in a collaborative relationship. Everyone tells us we should be networking more to grow a business and develop sales leads. However, networking has mixed connotations of large, impersonal conference centres, data capturing, accumulating stacks of business cards, and waiting for people to accept their LinkedIn invitations. In order to build our network, we find ourselves going to non-stop events, and joining societies and private members’ clubs in the hope that we will make invaluable connections to propel us forward in our endeavours.

Networking Vs Relationship Building

The definition of networking is interacting

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with people for the purpose of developing a diverse group of contacts for use at a future date. Whereas, relationship building on the other hand is investing emotional and intellectual capital into various parties to establish a personal connection, regardless on the tangible benefit from said investment. Meanwhile, Millennials now think they are staying in touch by updating their status and making connections on their Facebook, LinkedIn, or Twitter channels but this does not make up for face-to-face interactions. One thing that Millennials have got right though is that they crave experiences, rather than material items.

Building Relationships Through Distinct Experiences in Iconic Destinations British Polo Day began in Dubai in 2009 with the aim of creating an invitation only global platform to build relationships with some of the world’s most dynamic and interesting individuals, through distinct experiences hosted in iconic destinations.

There have now been over 65 British Polo Days in 16 countries spread over 5 continents, with a partnership base that remains characterised by best in class across the board and one that now represents over 2,000 years of cumulative heritage. The invitation only British Polo Day is almost like the ultimate travelling Private Members’ club that offers connections and introductions in cities across the globe, and an opportunity to build relationships with other like-minded partners and their clients.

Meaningful Connections and Solid Rapports Make meaningful connections for people by offering something before asking for a favour; the greatest compliment in business is a referral. This will build trust, an ingredient that builds strong, long lasting business relationships. British Polo Day now travels to seven destinations a year, which means partners do not need to worry about building a great first impression

British Polo Day travels to seven destinations a year with several events orgnaised during a long weekend or week.

Event - British Polo Day

because over the course of a long weekend or week at several events, it is easy to establish a solid rapport. There is of course no quick fix in building a long-lasting and fruitful relationship. The impact of shared experiences at these events, and the word of mouth after them is the oldest and best form of marketing in the world and the most effective in the luxury sector.

12 Royal Families and 100 Independent Billionaires The Chairman and Co-Founder Tom Hudson commented: “The base of partners – with over 2,000 years of combined heritage between them - speaks volumes about the relationship building opportunities that British Polo Day creates. Ben Vestey, the CEO and Partner of British Polo Day said: “I believe the success of British Polo Day has been largely down to word-of-mouth endorsement from many guests and supporters including key figures in government, the aristocracy, diplomats, military, fashion, art and popular culture. In addition, British Polo Day has hosted members of 12 royal families, 100 independent billionaires and leaders in world innovation including Sir Richard Branson and Elon Musk. And over 20,000 guests have enjoyed British Polo Day in the last seven years, and British Polo Day has to-date raised over $2 million USD, from a standing start in 2011.”

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Richard Oakes, Executive Director of Chelsea Barracks, the British Polo Day title sponsor said: “We are absolutely delighted to be the title sponsor for British Polo Day internationally. The collaboration this year has presented a great environment for Chelsea Barracks to forge diverse and lasting relationships across the world through a mutual love for this heritage sport.” Other partners include Royal Salute, Vista Jet, Charles Russell Speechlys, Yachting Partners International, Bentley, Hackett London, Nyetimber, Clinova, Justerini & Brooks, and Original Travel. Perversely, British Polo Day is not organising polo events, rather building a platform for the world’s most dynamic and most interesting individuals to come together in the key growth and core markets. With Brexit looming, projecting British brands and supporting their efforts to build relationships and new business with overseas clients and partners is more vital to success than ever. British Polo Day has just returned from two events in the United Arab Emirates in Abu Dhabi and Dubai, and the upcoming events are on the East Coast of the United States on June 9th, closely followed by sunset polo on home turf at Black Bears in Henley. The second half of the year sees British Polo Day head east to China in September and Jodhpur and Jaipur in December.

Lunch inside a beautifully decorated marquee during the 2017 British Polo Day at Black Bear Polo Club, Henley-onThames, Great Britain.

For those interested in attending this invitation-only event, please contact: info@britishpoloday.com and for further information: www.britishpoloday.com

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FAMILY OFFICE INVESTOR n.4

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Monte-Carlo British Polo Day

Good in the Wet - John Vildare

Jumping International of

A week in the Life of Christophe Bors

Managing the Future - Ben Allen

Smooth Transaction - Anouch Sedef Asian Vision - Laura Nineham

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Buying a Superyacht. Ten Tips for a

Time for Change - Tim Hunter

Are you being Covered? - Tom

Six Senses Residences Courchevel

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