Burlingtons Magazine | Issue 01 | Summer 2020

Sir Stirling

Moss Celebrating the life of a Formula 1 legend and true gentleman driver

STYLE Bremont’s Giles English talks British watchmaking

PROPERTY The future of London’s luxury real estate

MOTORING Shopping for supercars with HR Owen

N O 01 | SU M M E R 2020

dorchestercollection.com The Dorchester, London | 45 Park Lane, London | Coworth Park, Ascot | Le Meurice, Paris Hôtel Plaza Athénée, Paris | Hotel Principe di Savoia, Milan | Hotel Eden, Rome The Beverly Hills Hotel, Beverly Hills | Hotel Bel-Air, Los Angeles | Dubai (opening 2021)

Perfection just happens at Dorchester Collection

TIMING IS EVERYTHING Heesen’s Project Triton offers the rare opportunity to own and enjoy a brand new yacht without the waiting.

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Introducing the world’s most advanced car tracker.

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Valkyrie has the capability to provide specialist covert tracking equipment that is easily installed in a single vehicle or multi-vehicle collection, reports in daily and can be monitored from any internetenabled device. It is self-powered, quick and easy to install, adding immediate, state-of-the-art security protection to your prized possessions.

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FROM THE

CEO

W

ELCOME TO THE FIRST edition of Burlingtons Magazine – your exclusive guide to the finest in luxury lifestyle, business and investment. And where better to explore all the finer things in life than in London, the epicentre for art, culture, fashion, food and commerce, where so many of the world’s most exceptional brands, businesses and residents call home?

These are the elements that truly encompass this exceptional city and which Burlingtons, its members and its readers embrace. However, this is not only an areaspecific phenomenon – it is an identity and a way of life that transcends many countries and cultures, and a testament to the global identity of London.

Within these pages you will find Burlingtons’ unparalleled diversity and in-depth knowledge across a spectrum of professional and lifestyle interests. Burlingtons Club specialists are able to deliver astute commentary on making investments in luxury assets and cultural property, structuring deals, protecting those assets and wealth management.

The first of many, this carefully curated guide to London takes a closer look at the elements of business and culture that make up this exceptional city, while bringing an understanding of London chic to a truly global audience.

Deborah L Mills Chief Executive Officer Burlingtons Group Limited

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BURLINGTONS GROUP Deborah L Mills Chief Executive Officer Deborah.mills@burlingtons.group Henry Mills Director – Burlingtons Private Office henry.mills@burlingtons.pro Nicholas Portelli Lead Consultant – Real Estate nicholas.portelli@burlingtons.pro Jacob Kett Liaison – Burlingtons Private Office jacob.kett@burlingtons.pro CONTACT For advertising enquiries or to find out more about Burlingtons Club contact: info@burlingtons.club Burlingtons Group 5 Stratford Place London, W1C 1AX +44 (0)20 7529 5420 EDITORIAL TEAM Burlingtons Magazine is published by Vantage Media Limited Director of editorial: Michelle Johnson Director of art: Ross Forbes Contributors: Lysanne Currie, Georgia Peck, Rory FH Smith, David Hill Responsibly printed Printed by Park Communications, UK on Edixion Offset (FSC® certified paper) using vegetable inks and sustainable printing methods. www.parkcom.co.uk

Cover credit: © Sir Stirling Moss, circa 1955. Photo

by John Piercy/ Hulton Archive/ Getty Images

Vantage Media Limited 35 South Street London, W1K 2XE info@vantagemediagroup.co.uk +44 (0) 203 519 1005

© 2020 Burlingtons Group Articles and other contributions published in this journal may be reproduced only with special permission from Burlingtons Group. Burlingtons Group and the publishers (Vantage Media Limited) accept no responsibility for any views or statements made in the articles and other contributions reproduced from any other source. No responsibility is accepted for the claims in advertisements appearing in this journal and the publishers reserve the right to accept or refuse advertisements at their discretion.

Burlingtons Magazine is published by Vantage Media Limited. www.vantagemediagroup.co.uk 7

CONTENTS A noble legacy

10

Introducing the Burlingtons Club

Take 5

14

Find out what Burlingtons Club Members are excited about this season

The supercar ateliers

18

We head to HR Owen for the ultimate supercar shopping experience

Rule Britannia

22

Bremont co-founder Giles English on flying the flag for British watchmaking

Real estate recovery

28

Our property expert reveals an encouraging post-pandemic forecast for the London market

Postcards from Mayfair

22

32

Burlingtons explores the fascinating history of our London home

Valkyrie establishes the gold standard

Rule Britannia 34

Mayfair-based security specialists introduce the most secure card in the world

Sir Stirling Moss: a tribute

38

We pay tribute to the life of a true Formula 1 legend, on and off the track

8

28

76

Real estate recovery

Ask Boris

Built on trust

44

Integra Private Wealth’s CEO shares how values-led financial services are paying off for their clients

The new world order

48

RationalFX reveals all about the future of world currency exchange

Powered by principles

52

How London fintech Volopa has become a prepaid card company for grown ups

Fast fashion

56

Unleash your inner Steve McQueen with our pick of high-octane style staples

The rise of Ferrari

62

We explore the history of the iconic Italian marque

Electric skies

68

Fast Fashion

32 Postcards from Mayfair

ConnectSkies founder Gabriella Somerville on bringing sustainable air travel to the UK

How to beat your biggest banking challenge yet

56

72

Momenta reveals everything your business needs to know about starting your Libor journey

Ask Boris

76

Burlingtons’ resident bulldog answers your questions about investing in wine

The rise of Ferrari

62 9

A NOBLE LEGACY Burlingtons Group CEO Deborah L Mills welcomes our readers to the most well-connected virtual members’ club in town

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Burlingtons House 11

I

N PROUDLY LAUNCHING the first edition of our summer 2020 Burlingtons Magazine, I take great pleasure in introducing Burlingtons Group to our readers.

Our Group is named after one of the great British estates and houses of England, the Earldom of Burlington. It is a name that is synonymous with Mayfair in London and, indeed, our first office – which opened in 2001 – was located at Old Burlington Street, close to Savile Row and Burlington Arcade.

This name, so well known in the names of London’s landmarks, lives on thanks to the work of worldrenowned and celebrated architect, Richard Boyle, 3rd Earl of Burlington. Born in 1694, he was known as the ‘Architect Earl’ and the ‘Apollo of the Arts’. In succeeding to his titles and extensive estates in Yorkshire and Ireland at the age of nine, he showed an early love of music and architecture. Such was his interest in these arts that composer Georg Frideric Handel dedicated two operas to him while staying at the Earl’s London residence, Burlington House; he was also one of the Royal Academy of Music’s most devoted subscribers.

Lord Burlington’s major projects include Burlington House itself, Westminster School, Chiswick House and Northwick Park. He was instrumental in the revival of the English Palladian style of architecture in England in the 18th century, which gained popularity throughout the leading cities of the world. Thus, the Palladian style triumphed as the generally accepted style for the finest British country houses and grand public buildings alike.

Lord Burlington’s architectural drawings – which were even at the time considered extraordinary for an English aristocrat – are now preserved at Chatsworth House, a stately home in Derbyshire, England, which is still today the seat of the Duke of Devonshire.

Chiswick House 12

BURLINGTONS CLUB

BEST IN CLASS Being proud of our British heritage, and inspired by our first offices, we adopted the name ‘Burlingtons’ to represent our team as best in class. Burlingtons Group has grown over the last decade to be a 360˚ professional services group, providing expert advice to our clients across the globe. We deliver highly personal, joined-up solutions for businesses and private clients, and well as providing professional support to our clients wherever they are located. We specialise in: • • •

• •

Burlington Arcade

All aspects of UK legal advice Tax, accounting and audit Private office services, providing private investment opportunities in non-property and property deals, as well as property management and concierge IT support Fiduciary services

We have also formed joint venture relationships with key providers in foreign exchange, insurance, wealth management and private banking.

Headquartered in the heart of London, just a stone’s throw from Burlington Arcade, and with global offices in Almaty, Moscow, St Petersburg, Geneva, Malta and Gibraltar, we are able to support our corporate or private clients in relation to any matter, and provide pragmatic and realistic solutions to any of their issues.

In May this year, we were pleased to launch our Burlingtons Club, despite the ongoing impact of the Covid-19 pandemic. The response from our founder members and new members who continue to join alike has been overwhelming.

Burlingtons Club presents an international community of carefully selected members sharing the highest standards of excellence. Our Club members harness a collective knowledge and contact base to maximise international business development within a discreet international business community. Drawn from our extensive international reach in many professional areas and in many business sectors, we have brought together private investors, lawyers, accountants, wealth managers, tax advisors and other experts across the globe to develop business to business contact across the world and to open up our collective contact base and deal opportunities.

Through our Club, members are able to access our Deal Room, which presents our mandates relating to discreet non-property and property investments, as well as allowing our members to freely network with each other across the globe.

The famous architect, Dame Zaha Hadid (19502016) once said: “There are 360-degrees, so why stick to one?”. In Burlingtons Group we feel that, as a 360˚ professional and international service provider to our elite clients, we are instrumental in the architecture, construction and protection of their own private and business affairs. At Burlingtons, we strongly believe that we put the building blocks in place for our clients and see the entire picture – not just one degree.

Find out more at: burlingtons.group 13

TAKE 5 The incredible places, people and products that Burlingtons Club members are talking about this season‌

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FOR ART’S SAKE From old masters to contemporary game-changers, great art will always stand the test of time and, as London’s galleries and auction houses start to embrace the digital age, investing into blue chip masters has never been more exciting. Enter ARTCELS, a new initiative launched by the House of Fine Art’s (HOFA) Elio D’Anna and and commodities trader Gijs de Viet. ARTCEL’s entirely digital exhibition, XXI, is the first asset-based contemporary art exhibition, and offers investors shares in famed rare artworks by artists including KAWS (whose Blame Game Portfolio is pictured left and above), Damien Hirst, Retna, Jeff Koons and Banksy. Picture perfect! artcels.com

ROOM WITH A VIEW Located on the prestigious and historic St Barbara Bastions, Iniala Malta (left and right) is a lavish five-star hotel in the heart of Malta’s capital of cool, Valletta, opening on 10 September.

We love the design style of this opulent 23 suite property, spread across four traditional Maltese townhouses (and their incredible ancient vaults) and with views across the Grand Harbour from its chic rooftop restaurant. The décor blends urban design with a level of luxury befitting the UNESCOawarded town, and is the perfect base from which to explore the old-world charm and rich history of this sunny island. iniala.com/malta 15

SUPER-NOVA Limelight Nova is a leading luxury fashion concierge company with offices in the centre of London, and a highly trained team that can source any of the latest fashion and runway looks. Whether you’re looking for rare and vintage clothing by Hermès, Chanel, Louis Vuitton, Dior or more; sold out fashion collaborations; limited edition and collectible watches; tailoring and haute couture, or just VIP personal shopping, Limelight Nova is your one stop shopping guru. And it’s not limited to fashion alone: they welcome any luxury item enquiries, and with free bespoke styling and gift suggestions, you’ll be ready to impress at the most prestigious of events. limelightnova.com

CRUNCHING THE NUMBERS We know, it’s difficult to make tax sound sexy. But in today’s ever-changing world, it has never been more important to make sure your business and personal life are tax-optimal.

Our Burlingtons tax team can assist in your global personal business tax structuring and banking, to ensure no matter what difficulties may come next, you can be safe in the knowledge that your finances are definitely adding up.

Contact our team at: info@burlingtons.group 16

BURLINGTONS CLUB

RAISE A GLASS No celebration could be complete without a fine glass of champagne in hand and, for us, Perrier-Jouët’s Belle Epoque 2011 cuvée (right) is the perfect balance of fruit and fizz to raise a toast to our first issue and the launch of the Burlingtons Club. To add to your own festivities, table service will resume at the Perrier-Jouët Champagne Terrace at Harrods (below) this summer, ready for visitors to reward themselves for a shopping spree well done, or simply to enjoy the wonderful views of Knightbridge, all while enjoying a glass of bubbly and a delicious variety of small plates. Cheers! perrier-jouet.com

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THE SUPERCAR

ateliers

Photography by David Hill

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London’s premier supercar dealership HR Owen is devoted to finding the perfect drive for its affluent customers – as Rory FH Smith discovers

HR Owen hosts around 200 events a year to woo its multi-car-buying clients

I

T’S THREE O’CLOCK on a rainy Thursday afternoon and I’ve just spent over £3.1million.

Added to that, I’ve barely moved from my seat on the soft leather sofa situated in Jack Barclay (left) – HR Owen’s flagship Bentley dealership in Berkeley Square, Mayfair.

I began my day with the intention to shop for supercars (yes, plural), so I’ve come to the one-stop shop for four-wheeled luxury in London – HR Owen. With 14 brands under its belt, the business owns the UK’s only Bugatti-approved showroom, as well as Jack Barclay – the world’s oldest Bentley showroom, which was founded by John Donald “Jack” Barclay, one of the original Bentley Boys of the roaring 1920s. Alongside both of those sits the new Ferrari Atelier commissioning suite, opened by none other than Ferrari Formula 1 superstar Charles Leclerc in July last year, while Rolls-Royce sits just metres down the road, a stone’s throw from The Ritz London. On top of all that, Maserati and Lamborghini showrooms can be found in South Kensington, but HR Owen will also happily sell you an Aston Martin, Lotus, Rimac or Puritalia.

In short, there’s not much you can’t buy from the London-based car sales empire – but, sadly, all I’ll be taking home with me today is a Bugatti baseball cap. Unfortunately, none of the cars I spec will see the light of day – I’m here to window shop and work out how anyone with a cool £200,000-plus burning a hole in their tailored trousers goes about selecting their ideal supercar.

BESPOKE APPROACH With more choice working its way into the market each year, and all-electric newcomers like Rimac rising to the occasion, choosing from the selection of supercars on offer is no easy task.

Starting in the group’s flagship Jack Barclay showroom, I meet with HR Owen CEO Ken Choo in the original wood-panelled boardroom that once housed the dealership’s eponymous founder.

Softly spoken and considered, Choo is a busy man. Taking over the business four years ago, the

Malaysian business boss is also executive director of Cardiff City and KV Kortrijk football clubs.

“Everyone likes different things, otherwise everyone would be marrying the same girl,” Choo says with a smile. “Lamborghini customers are completely different to Ferrari, and Ferrari customers are completely different to Bentley customers. I deal with some of them myself. It’s not just buying another car, there’s a lot that goes into the process, which is the interesting part.”

From exclusive parties and Lamborghini drive days, to private jet trips to supercar factories in Italy, Choo’s business puts on around 200 events a year designed to woo and maintain its multi-carbuying clients.

“The margins are small in this business, so to protect the one or two per cent, you need to do a lot.” While he has a top-secret list of clients, Choo is happy to talk openly about his relationship with culinary ace Gordon Ramsay – and the chef ’s penchant for fast Ferraris. “If you go to the Ferrari dealership here, you can see one of the lucky cats from his restaurant at our bar. When you buy a car from us, we host you in Gordon’s restaurant, and he buys cars from us. It’s all about relationships.”

But, just like the market, supercar buyers have changed dramatically over the past decade. “I think they have done a lot more homework before they come into the showroom. Customers are also getting younger. If you look at the demographics of the new billionaires and millionaires, they’re getting younger and there are more from Asia than ever before,” explains Choo. “You never know these days, it’s the people that come in without a tie or a suit that are the richest in the world. So, we’re trying to change the way we perceive the customers.”

Considering I slot into this younger demographic that Choo mentions, it seems like the right time to start the process of purchasing my first supercar.

Moving through a frosted glass door, I’m ushered into the cool, blue surrounds of the Bugatti showroom. Well, if you’re going to spec a supercar, you might as well start at the top. »

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Clockwise from above: Inside the Ferrari Atelier; Charles LeClerc opens the atelier with CEO Ken Choo; examining a Bugatti Veyron

LED BY LIFESTYLE “The average customer has 46 cars – usually a mix of classic and new,” says Paul Stevens, brand director at HR Owen Bugatti, as we walk around the boutique showroom. “There’s not a huge options list,” he reassures me as I eye the £2.85m price tag attached to the used Grand Sport Vitesse sitting in pride of place. “Colour-wise, you can do whatever you want.

One lady is looking at a pink and white Chiron with the same colour interior.”

With the deposit for my £2.6m Chiron Pur Sport at the ready, the next step in the process is to fly to the factory in Molsheim, France for dinner in the chateau where Ettore Bugatti used to entertain his clients before heading to the factory. After that, it’s out for a drive with Bugatti’s test pilot Andy Wallace, before sitting with a designer to spec the car.

It’s a far cry from the experience of ordering a mass-produced Audi or Mercedes.

“We’ve had clients that have designed their own carbon fibre, customised the grille to put their own initials in it. You can spend half a million on options,” says Stevens.

With my Bugatti ‘on order’, I move a few metres down the road to the new Ferrari Atelier commissioning suite, where a large digital screen is flanked by fine leather cloth, instrument binnacles and lashings of carbon fibre.

Here I sit and virtually spec my new, racing-green Ferrari F8 Tributo with almost every option ticked, before meeting at Jack Barclay with Bentley’s in-house design consultant regarding my soon-to-be Flying Spur. After he diplomatically steers me away from what could have been a costly design disaster, I settle on a smart sequin-blue limousine with ‘porpoise’ coloured leather and

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every conceivable extra. The result is a hefty £240,000 purchase, made up of £34,500 worth of options. Just to put things in perspective, that’s enough to buy an Audi A5 outright.

Walking out, I’ve (theoretically) spent more than £3m since I first entered the showroom. In just a few hours, I’ve blown more money than most people will see in a lifetime, the proud ‘owner’ of a Bentley super saloon, a two-seater 200mph Ferrari and one of 60 limited W16 quad-turbo Chiron hypercars. It’s an odd feeling, but a day well spent for someone who regularly dreams up supercar specifications.

But the experience itself just gets better. With HR Owen’s five-acre, £30m all-encompassing experience centre on the outskirts of London planned for completion in the next two years, Choo and his team are upping the stakes in the supercar selection process.

“It’s more than just a showroom,” says the boss. “The dealerships here are boutiques – there will be many more lifestyle and brand experiences there than just cars on a forecourt,” he adds with a smile. With more supercars arriving year on year and new start-ups challenging the established route to market, empires like HR Owen are getting creative.

While it might be a difficult decision to pick a winner, it’s a hugely privileged process that’s set to get even more exciting in the coming months and years. Already panicking about your next purchase? Just sit back, keep calm and enjoy the ride. hrowen.co.uk This feature originally appeared in Tempus Magazine: tempusmagazine.co.uk

RULE BRITANNIA Flying the flag for British watchmaking, Bremont co-founder Giles English tells Michelle Johnson about the brand’s aviation heritage – and how it’s making history

T

HE NEW HEART of haute horology is Henleyon-Thames. It’s here, far from the rolling valleys of Le Brassus, Switzerland, that prestige watchmaking brand Bremont is set to open its new state-of-the-art facility by early 2021, making good on its promise to revitalise the tradition of British watchmaking.

Inspired by their late father’s passions for mechanical engineering, aviation and watches, Giles and Nick English founded Bremont in 2002 with the goal of manufacturing fine pilot watches right here in the UK. The brothers, both pilots and engineers themselves, studied Swiss watchmaking while setting up Bremont, and have seen the company grow from a modest chronometer maker to a globally renowned brand, with flagship boutiques now in London, New York, Melbourne and Hong Kong. It also attracts big name partnerships such as Jaguar and Martin-Baker.

“When we were kids, Nick and I restored an old Jaguar with our father,” Giles English tells Burlingtons. “So when Jaguar’s then-design director approached us in 2010 to design a mechanical clock for their concept car, the Jaguar C-X75, it was a very cool project.”

Jaguar Land Rover would later commission Bremont to create a bespoke pocket watch for the Duke of Edinburgh, presented to him at Windsor Castle, as well as collaborate on the Jaguar XJ75 and release a range of watches inspired by the marque’s E-Type. Another point of pride for Bremont is its popularity within the Armed Forces. 25% of the brand’s business comes from the military, particularly pilots; a clear testament to the accuracy, precision and durability of each stylish chronometer.

Here, Giles English looks back on Bremont’s family heritage, shares his passion for aviation and reveals his vision for British watchmaking in the years to come. »

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Bremont founders Giles and Nick English

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INTERVIEW

The Bremont Supermarine divers watches are inspired by aviation

Giles, how did your father, Euan, inspire you and Nick to create Bremont?

My father [Euan English] was an amazing guy. He had a PhD in aeronautical engineering from Cambridge, he was ex-RAF, and he had this incredible talent for building things. Growing up, my brother Nick and I used to spend our time in the workshop with him – we restored old cars, built a plane that we still fly, and a sailboat we went and lived on for six months – but he also had this real passion for clocks and watches, which we inherited.

Our lives changed massively in 1995, when he and Nick were in a plane crash. Nick survived, but Dad sadly didn’t make it through. We hit a tipping point in our lives where we thought, “everything could change tomorrow: let’s do something we love”. We were young and optimistic, maybe naïve, and really felt there was a gap in the market for a contemporary British watch brand. That’s where this mad journey began.

The story behind the brand’s name is fascinating…

Yes, Nick and I met a farmer called Antoine Bremont when we were flying over France in the late 1990s, and had to make an emergency landing on his field in terrible weather.

We were lucky the plane didn’t tip over! It was an odd one because, in England or America, if that happens you just give the farmer a bottle of whiskey in thanks and take off once the weather clears, but in France they impound your aircraft, which becomes an expensive logistical nightmare. Antoine was a lovely old boy in his late 70s, fixing tractors and having fun in his workshop, and it really struck a chord with us because our father would have been just the same if he had reached that age. Once we got home, we called and asked if we could use Antoine’s name [for the brand], because we liked the sound of it and could get a trademark. He said we were crazy Englishmen, but he agreed. [laughs] Bremont is very much a family business. What are the advantages of working with your brother?

For me, one of the most important aspects of any watch brand is the design and ethos. Nick and I were best mates growing up – we share the same loves and passions, the same preferences in planes and cars – and that comes through in our design references. If we had a whole team of designers going off in wildly different directions, it would be a bloody nightmare. I see that with some brands; you can tell when a new designer or team has come on board, and suddenly the aesthetic has changed or there’s a collection that’s completely different. Nick and I design all our watches and there’s a story behind each one. If we’re inspired by the F35 fighter jet we get really geeky about that plane. I can work on a 30s style watch, because I can reference the de Havilland DH88 Comet or the style of a 1910 pocket watch.

Bremont has such strong aviation and military links. Why did you choose to focus on pilot watches?

We really grew up around aviation – I learnt to fly aged 17 and Nick and I were both sponsored through university by the RAF. So, as a family of watch collectors, we all loved aviation watches. They aren’t a sports diving watch or a dress watch, just a middle ground of classic, good-looking watches that you can wear with your suit or up Mount Everest or in your plane. When we started Bremont, we felt that a lot of the aviation watch brands had gone very ‘blingy’ and lost the core of what they should be. We knew aviation; we knew what pilots want to wear. Then we started working with companies like Martin-Baker on our MB series and began to get increasing requests from the military. It was a perfect fit because, for military squadrons, timing is everything – and if you’ve flown in an F18 for seven years of your life, you’ll be talking about that plane for the rest of your life. It’s very special to have a watch that was custom-built for you during that time. It becomes a true family heirloom, and that’s what we’re trying to achieve.

Your mission to manufacture in the UK has made Bremont the flagbearer for British watchmaking. What inspired this?

We were really inspired by the British watchmaking heritage that we’d grown up with. People around the world love and trust British brands but, as a watch company, we’re always competing against the tradition of Swiss watches and trying to change the mindset of people who don’t know that, just 100 years ago, the UK was making half the world’s watches and was at the forefront of modern mechanical watch inventions.

However, being British has helped us differentiate ourselves from the majority of mechanical watch brands.

How did you go about setting this up in the UK? We went to Switzerland for about five years before we started making our watches, and then it was a further three years before we managed to bring the manufacturing over to the UK. Watchmaking is quite a challenging business on every level, but we wanted to build a brand that would have longevity. A big part of that challenge was to properly invest in the UK and bring manufacturing home: training people to assemble components and investing in equipment because, as a watch brand, we’re machining components to around five microns. In comparison a human hair is about 60-70 microns thick.

We’re now set to open our big new facility in Henleyon-Thames, where our customers will be able to see the components being machined and put together. I think when you see what goes into building a watch, you suddenly get the magic of it. We’re excited for people to experience that. » 25

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How much of your collection is now made at Henley?

There are a lot of components that require a specialist machine or artisan, so we can’t make everything in the UK yet, but every year we look to make more components of our own. A big move for us has been to create our bespoke movements, a project we started about four years ago working with local universities. That new movement should come out in the next 12 months and will be a huge step forward for us.

What we lack in the UK, compared to Switzerland, is the infrastructure of expertise. Say I want a dial enamelled or plated along with the hands, in Switzerland there’s a workshop over the road that specialises in these processes. We’d love to have that infrastructure in the UK, but it doesn’t happen overnight.

Left: Bremont’s watchmaking facility in Henley-onThames. Above: the MBII, a collaboration with Martin-Baker

What’s next for Bremont?

We are really ambitious. The UK and America are our core markets, and we’ve got a store in Hong Kong but we’re not in China yet. China accounts for 40% of the global watch market, and so that will be a natural growth area for us as a brand. We also feel that there’s a long way to go in the UK to grow our market share, and we want to keep on investing in British watchmaking. bremont.com 27

REAL ESTATE

RECOVERY Burlingtons’ property expert Nicholas Portelli takes a look at what we can expect in a post-pandemic market

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PROPERTY Burlingtons’ property expert Nicholas Portelli

I

N TRYING TO ANTICIPATE what Covid-19 might mean for the property market, we need to consider pentup demand among buyers, and price trends measured over a number of years. It is now six years since a new regime of stamp duty land tax (SDLT) was introduced and four years since the EU referendum. Both events had a considerable impact on the property market that can still be felt today.

If we were to go back further, to the global financial crisis of 2007-08, there is a pattern that begins to emerge. For the purposes of this analysis we will take a simplistic approach and consider two parts of the London property market: central and non-central London. Both follow the same trend but are driven by different factors. Demand for properties in noncentral London is more ‘need’ driven than in central London, while the latter is more dependant on international investors and money that are seeking long term capital preservation.

In times of crisis, central London property prices are immediately impacted because investors are generally quick to react to sudden market changes. We witnessed this back in 2007, when property prices in central London fell by 26% within a few months from the beginning of the crisis. The rest of London followed a similar pattern, although the drop was slightly less severe and more protracted. Consequently, as the world started to see signs of recovery, the more sophisticated investors acted ahead of the mainstream market. In fact, by January 2010, central London prices were back to their pre2007 levels and the rest of London got there some six to 12 months later.

This same trend was observed immediately after the December 2019 general elections. Once again it was central London where activity picked up first, with the rest of the capital following soon after. This quick recovery led to London’s average house price increase by 4.7% over the year to March 2020, amounting to the largest 12-month growth that we had seen since December 2016. » 29

London’s real estate market experienced a significant online bounce as lockdown lifted

Then the pandemic struck and, by mid-March, all but a few transactions froze across the entire country. Once the restrictions on UK property transactions were lifted on 13 May, the market started to pick up faster than expected.

Leading estate agents reported a significant bounce in online property activity, with property portal Rightmove reporting that visits to its website had returned to pre-lockdown levels on the day the market reopened, with 5.2 million visitors.

Rightmove figures also show that based on data from 7,000 deals agreed within the last month, vendors on average are securing 97.7% of their last advertised asking price.

This sentiment is being echoed by various market players we deal with on a daily basis. Our own experience is not dissimilar, having just paid very close to asking price for a house in Fulham that we managed to secure for a client, despite quite aggressive competition.

Just before the lifting of the restrictions, the general consensus among lenders and leading research houses was that property prices in London would fall by about 5-10% this year, and recover most, if not all, of that drop by the end of 2021. However, we are seeing that post-lockdown prices are rapidly getting firmer. The average discount to the asking price for sales outside London has been 2.6% since the market reopened on 13 May (compare that to 4% during the lockdown). In London, the average discount is wider but, still, it has narrowed from 6.4% during lockdown, to 3.9% post-lockdown.

These figures indicate that the post-pandemic environment is already being priced into the market. The question now, then, is how resilient will that demand be as the new economic landscape takes shape?

To answer this question, we also need to consider the next major issue, which is, of course, Brexit. While most are still adjusting to post-pandemic conditions, some are now turning their attention to what will inevitably be a difficult split from the EU. Political posturing will start all over again, bringing with it the usual dose of uncertainty that the market so dislikes. This time the impact may be less severe and possibly short-lived, because the market understands the general direction of travel in the Brexit question.

In times like these, it is all the more important to take a long-term view of the market and to seek independent professional advice. In spite of the challenges experienced in the last decade, London property prices have continued to provide investors with an average annual return of around 8% per annum. In some parts of London this return is closer to 12% per annum. So, we have good reason to be cautiously optimistic for the future.

Nicholas Portelli is Lead Property Consultant – Burlingtons Private Office. He is a graduate in finance and investments and former CEO of a financial services group of companies. Contact him via email: Nicholas.portelli@burlingtons.pro 30

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POSTCARDS FROM...

MAYFAIR

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AYFAIR HAS BEEN HOME to Burlingtons Group since our inception and, just like today, this ever-trendy part of town has always kept fine company. Mayfair has been known throughout its history as an area for high society to gather, thanks to its myriad hotels, galleries, shops and restaurants.

Historic Mayfair gets its name from the annual May Fair that took place during the late 17th century at what is now Shepherd Market.

The fair developed a notorious reputation and was eventually closed down on the grounds of its being a ‘public scandal’.

By the early 1700s – under the development of the the Grosvenor family and famed surveyor Thomas Barlow – Mayfair had become a new suburb for the ultra-rich. Unlike many areas of London, Mayfair has maintained its affluent status ever since – a prestigious feat commemorated by its position as the most expensive square on the London Monopoly board.

Park Lane Originally just a muddy country path, its views of Hyde Park has made Park Lane the most fashionable place to reside since the late 19th century.

Grosvenor Square This garden square was the centrepiece of the Duke of Westminster’s early Mayfair. In the 1920s, four of the famous Bentley Boys took adjacent flats in the south-east corner (known as ‘Bentley Corner’ to cabbies), where their all-day parties became legendary.

Mount Street One of London’s most prestigious residential and shopping areas, Mount Street’s history is ever present. It is home to boutique shops including London’s oldest butcher, Allens of Mayfair, and grand dame hotel The Connaught.

South Audley Street One of Mayfair’s major shopping streets, South Audley Street is home to modern mavericks including Bremont and Volopa, as well as historic boutiques that are still going strong – Thomas Goode was established 1844 and gunmakers James Purdey & Sons in 1881. SAS founder Sir David Stirling also kept his private offices here after the Second World War. 32

Stratford Place Burlingtons’ London HQ is located at Stratford Place. The street is home to Stratford House, built in the 1770s as the London town house of the Stratford family. Now the home of the Oriental Club, the grand manor was also the birthplace of Lady Clementine Spencer-Churchill.

Savile Row The home of gentlemen’s tailoring, Savile Row has been synonymous with style since the 19th century, catering to royalty, celebrities and high society from across the globe.

Berkeley Square Despite Dame Vera Lynn’s hit song, there are few nightingales to be found here. Developed in the 1730s, it was once home to traditional businesses; now fashionable restaurants and private members’ clubs line the leafy square.

The Royal Academy of Arts The last surviving of Piccadilly’s great mansions, Burlington House was bought by the government in 1854 and is today home to the Royal Academy of Arts, founded by George III.

Annabel’s Founded in 1963 by Mark Birley, Annabel’s was the country’s first members-only nightclub.

Frank Sinatra was its first member, and clients have included British royals – such as the Queen, Prince of Wales and Duke of Cambridge – and US President Richard Nixon.

Burlington Arcade Commissioned by Lord George Cavendish, this covered promenade of boutique shops was the first of its kind in 1819. It was known for its Beadle guards, who still protect the arcade today.

The Ritz London Countless fashionable names have been ‘putting on the Ritz’ here, since the hotel first opened in 1906. Notable dinner guests have included Nöel Coward, Charlie Chaplin and the future Edward VIII, while actress Tallulah Bankhead was photographed sipping champagne from her slipper – inspiring the hotel’s favourite cocktail.

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The Valkyrie Ambassador Card is fashioned from solid 18-carat gold. ŠLouis Beausoleil 34

SECURITY

VALKYRIE ESTABLISHES THE

GOLD

STANDARD The Mayfair-based security specialists introduce their new Valkyrie Ambassador Card, milled from solid gold and designed to be the most secure card on the planet

I

N AN UNASSUMING redbrick building, in the heart of London’s Mayfair, there is a company that works beneath the surface to protect and power some of the UK’s most important companies, and the individuals that run them. Unlike the high-end restaurants and designer boutiques that neighbour its headquarters, Valkyrie is a leading security firm that operates under the radar, but what they (purposefully) lack in exposure, they exude in expertise.

Valkyrie assists major security firms across the globe with specialist security measures – including electronic countermeasures (better known as ‘bug sweeping’) and physical and electronic penetration testing – for UK and international corporations, HNW individuals, and their family offices. Drawing on over 100 years’ combined experience in Britain’s most elite military and intelligence units, Valkyrie are industry leaders in security and risk management, delivering high-level cyber and physical security solutions tailored to their clients’ needs.

They aim to comprehensively identify, assess and manage risks that you or your company may face. Their services are centred on two key areas: advanced technologies and innovative measures, and personalised and comprehensive security. As well as ‘bug sweeping’ and cyber security, they are known for their Technical Tracking Solutions, including the ultra-secure Sentinel Tracker and their Access Control System, with which they secure a number of the UK’s most sensitive buildings, including the Houses of Parliament.

“Valkyrie punches well above its weight in a number of areas, due mainly to an exceptionally talented team which I am lucky enough to head up,” says managing director David Webb. “Most of our team is drawn from the UK special forces and intelligence community, which means we can count on significant and relevant experience in the field and combine this with practical solutions in the commercial environment.”

Webb spent 16 years serving in Britain’s elite 22 SAS, before heading up Valkyrie’s formidable team. “Valkyrie breaks the mould when it comes to modern security thinking. We » 35

The Valkyrie Ambassador App links seamlessly with other Valkyrie services, including the Sentinel Tracker and Access Control Systems. ŠAndrew Green 36

SECURITY

The Valkyrie Ambassador Card is set to become the most secure card in the world

look at any problem from a number of perspectives to provide a 360˚ solution that goes beyond tackling the obvious threat, to provide a holistic and integrated or, as I like to say, ‘joinedup’ solution,” he says.

Since its inception in 2010, Valkyrie has built up an impressive reputation with a list of clients who look to them for a diverse range of products and services – such as security and risk consulting services; investigation, intelligence and surveillance services; and due diligence services – all designed to help protect and mitigate risk in both their domestic and business environments.

Webb explains that trust is the foundation of Valkyrie’s success, and it has inspired the company to develop products that go beyond the areas traditionally associated with runof-the-mill security firms. Their state-of-the-art technology, applied by people with years of training and experience at the highest levels of the security services, is what gives Valkyrie their edge.

It is this demand for practical yet highly secure products for everyday use that inspired Valkyrie’s newest development: the Valkyrie Ambassador Card programme. Now in its prototype development stage, the payment card already looks set to become the world’s most secure card, designed for use by a global elite.

Fashioned from solid 18-carat gold, the Valkyrie Ambassador Card firewalls its clients’ bank accounts, protecting them from direct attack through cloning or skimming. The card cannot be scanned and can only be read in a Point of Sale (POS) machine with highly secure chip and PIN. Another interesting feature is the signature, which is engraved onto the back of the card, making fraudulent misuse very difficult. The card clears in more than 120 currencies worldwide, so is perfectly suited for the international traveller with bespoke fraud prevention-built in. The Ambassador Card has been designed to directly meet the demands of a highly mobile HNW community that is exhausted with constant fraud checks on their standard plastic bank cards, which can often cause delays and embarrassment.

“The card was inspired by a request from a private bank which wanted us to design a bespoke card for their clients, the majority of whom are billionaires,” Webb explains. “The decision was made to produce the card in solid gold or platinum and to build in a number of physical and electronic security features that will make the card the most secure card on the planet.”

To cap it off, clients will manage their cards from a mobile banking App that links seamlessly with their other Valkyrie services, ensuring a truly 360˚ experience. With each card made-to-order, availability of Ambassador Cards is limited but, with this, Valkyrie clients will be confident that when it comes to their card, all that glitters really is gold – solid gold.

Find out more by visiting: valkyrie.co.uk 37

SIR STIRLING MOSS: tribute to an icon An icon of Formula 1, Sir Stirling Moss OBE redefined the art of motor racing for a Britain that craved glamour, style and a hint of danger. A colourful character off stage and a gentleman on the track, Burlingtons Magazine reflects on his unforgettable career

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Sir Stirling Moss

K

NOWN THROUGHOUT his career as ‘Mr Motor Racing’, Sir Stirling Moss was an icon of Formula 1, regarded as one of the greatest drivers of all time by his peers – despite never winning the World Championship.

When Moss passed away in April 2020, aged 90, tributes poured in from admirers, including his former team, Mercedes, and F1 champions Damon Hill and Jackie Stewart, who described Moss as the epitome of driving excellence. “He walked like a racing driver should walk, he talked like a racing driver, he looked like a racing driver and he set a standard that I think has been unmatched since he retired,” said Stewart.

Born in 1929, Moss’ career began in 1948, when he was just 18; yet he recalled coming to his calling only a scant few years before.

“I was a war child... I was much more interested in the planes that came over and looking up to see if they were Messerschmitts or Hurricanes or whatever,” he said in 2009.

“I only got interested in motor racing when I was about 16. I read a book by Prince Bira, who was an exceptionally good amateur and he made some money, though he was not professional. I thought, well it sounds a really interesting business, and so then I started. The first actual event on a circuit was in a place up in Yorkshire on a disused aerodrome.

That’s how it started.”

Just seven years later, Moss won his first Grand Prix – and would go on on to win 15 more until a near-fatal crash at Goodwood in 1962 forced him to retire.

Clearly a young talent, Moss’ father allowed him to buy one of the first Cooper 500s, the first racing car manufactured in the UK and one he used to compete all over Europe. Patriotic Moss wanted to race British cars for as long as possible, although admitted his “favourite car is a 250F Maserati”.

His 18-year career was meteoric; Moss won 212 of the 529 races he entered, including 16 F1 Grand Prix. His victory in the 1961 Monaco Grand Prix, racing a Lotus 18 against the more powerful Ferraris, was his third Formula 1 victory around the Principality and is still regarded as one of the best Formula 1 races ever. He would compete in as many as 62 races in a single year and drove 107 different types of car across all classes of motorsport – including Cooper 500, English Racing Automobiles (ERA), Lotus, Maserati, Porsche, Aston martin sports cars as well as Jaguar saloons. In 1955 Moss was famously signed by Mercedes-Benz ‘Silver Arrows’, partnering the then-World Champion Juan Manuel Fangio. »

In 1955 Moss was signed by MercedesBenz ‘Silver Arrows’

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Moss attends the Goodwood Festival of Speed in 2011

FEATURE

When you’re really dicing with somebody, and close up on the man ahead of you, it feels really exhilarating GENTLEMAN DRIVER A legend on the track, Moss was known for his sense of fair play, which was always evident when racing.

In fact, it was this sportsmanlike attitude and camaraderie with his fellow drivers that cost him the 1958 World Championship to Scuderia Ferrari driver Mike Hawthorn – who won a single race to Moss’ four victories. Moss had taken pole position on the Porto street circuit, battling Hawthorn through rain and slick conditions to achieve first place. But when stewards penalised Hawthorn for driving a few yards downhill in the wrong direction to restart after a mechanical fault, it was Moss who jumped to his rival’s defence, insisting that Hawthorn had not been on the official course – and that the attempt to restart downhill had been Moss’ idea – and so he should not be penalised. The stewards relented and Hawthorn kept his points, ultimately winning the World Championship title by just one point more than Moss.

“Sir Stirling was a larger-than-life figure in our sport and one of the survivors of an age when motor racing was about danger, bravery and camaraderie,” Mercedes F1 boss Toto Wolff said following his death. “But most of all, Stirling’s career was characterised by an impeccable sportsmanship and in this he truly set himself apart. He was a great figure in the history of Mercedes, both as a Grand Prix driver and the winner of the 1955 Mille Miglia.”

Known for racing without a seatbelt, Moss is a testament to racers being born, not made. “If everything is under control you are just not driving fast enough,” he famously said Committed to an incredibly physically demanding schedule, Moss took part in more than 52 races a year (unlike today’s racing calendar, marked with just 19 gruelling races per season) with each racing lasting a minimum of three hours.

Since its beginnings in 1950, the Formula 1 World Championship has grown to behemoth of sporting events, with some 70 circuits around the world hosting at least one Grand Prix. Some, like Monza, Italy and Silverstone in the UK, stand out as jewels in the sport’s crown – particularly due to their difficulty and speed.

Formula 1 today is a far safer – and more lucrative – venture than it was during Moss’ career, with several legacy circuits redesigned since 2010 to benefit spectators and driver safety.

There is also the question of team sponsorship, banned before 1968 but now considered a necessity, given that a Formula 1 team requires £50m to enter the race. By 1994 a tobacco industry journal described Formula 1 as ‘the most powerful advertising space in the world’.

Yet Moss, who also advocated a return to street racing, revealed in 2015 that he would not have changed eras for any commercial opportunities. To Moss, the burden of commercial responsibility was simply not equal to a better quality of life.

“I’m a racer. I’m not a driver,” said the 1950s icon. “And to me, driving around is very nice, but when you’re really dicing with somebody, and you can corner in a certain way and close up on the man ahead of you a car length, it feels really exhilarating.”

- Sir Stirling Moss

LIFE IN THE FAST LANE In 1962, Moss’ love of the thrill came to an abrupt end when, during the Glover Trophy Race at Goodwood, he crashed his Lotus in a near-fatal accident at 145mph.

The event saw Moss in a coma for a month, and partially paralysed for half a year.

Having made the decision to retire, Moss expanded his commercial interests with the same vigour he employed while racing. Chief among these pursuits was his property portfolio, which he developed with his family, including his devoted wife Lady Susie Moss. He soon became notorious for his ultra-modern, high-tech upgrades to his home in Mayfair’s South Audley Street.

The five-storey property – bought for just £5,000 in 1961 – had been one of the locations of architectural, historic and social interest damaged by three high-explosive bombs during the Second World War; it’s original features and façade preserved only in photographs. Moss soon created a state-of-the-art modern home full of the latest gadgets.

What’s more, over the years what he referred to as ‘Project 46’ ensured his home continued to modernise, transforming constantly to include a remote-control bathtub, electrohydraulic dumbwaiters, and a unique carbon fibre lift made by the Williams F1 team. Roughly five years ago, the same townhouse had an estimated value of £10m.

Larger than life, Moss captured the imagination of fans and writers even outside of the racing world. Anthony Horowitz’s Trigger Mortis, a James Bond novel commissioned by the estate of original 007 author Ian Fleming, is based on one of Fleming’s unwritten stories and would have been the first to use a real person as a character. Set in the 1950s, Fleming’s plot would have seen Bond thwart a Russian plot to kill Moss at a deliberate car crash on West Germany’s Nürburgring.

However, Sir Stirling’s real-life success at the circuit indicates that our hero would have accomplished his mission.

From his success and sportsmanship on the track, his passion and determination in life, to his great wit and humour, Moss will be remembered as a titan in his field for all the very best reasons. As the man himself once said: “For a true racer, the race isn’t over until he sees the final flag.”

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Integra Private Wealth CEO Alistair Muscat shares how a decade of values-led financial services is paying off for clients

Integra Private Wealth CEO Alistair Muscat 44

FINANCE

I

NTEGRA PRIVATE WEALTH is a fully regulated EU investment service firm that was set-up in the aftermath of the global financial crisis to provide a holistic wealth management solution to a restricted group of high net worth clients and institutions.

Following the global challenges of 2008 and 2009, a void was left in the financial services industry as many firms providing wealth management services, including large banks, folded or pulled back in terms of operations and services offered. Integra Private Wealth, originally called Integradvisory, was set up to fill this void by integrating the private boutique bank philosophy with traditional investment services, to enable the provision of bespoke advisory and portfolio management services. The company was built on a set of core values based on trust, transparency, accountability and an unparalleled service that always puts our clients at the heart of everything we do.

Today, after a decade of regulatory changes in the financial services industry, some of these values have become the norm, and it fills us with a huge sense of satisfaction to witness the evolution of the financial services industry around the same concepts, values and ideas that Integra Private Wealth introduced over a decade ago.

The location for our head office was chosen in line with our vision of providing a mix of solutions to our clients. When thinking about wealth management, we had to keep in mind the fact that clients required a service that, many a time, delved outside the traditional banking and investment services. From managing a superyacht to registering a private jet, Malta provided just the mix of solutions our clients required. Integra quickly established itself on the island as a reliable partner to top multi-disciplinary practices that worked hand

in hand with us to ensure that, while Integra managed the core wealth management areas of portfolio and money management, it also acted as the main point of contact for the rest of the client requirements.

The facts that Malta, a fully-fledged EU member, offers the peace of mind of a stable political and financial jurisdiction, and has also inherited UK common law as well as the UK tax rebate system, were additional factors that made our jurisdictional choice easier. Areas like trust services and succession planning have been built into law using the well-established UK standard. Our island’s climate is a further bonus to entice our international clients to visit us to conduct their business while at the same time enjoy what the island has to offer.

Over the years, Integra Private Wealth has established itself not only as a trustworthy and reliable business partner, but also as a natural fit to those clients that require a true private client experience. This reputation has allowed us to experience exceptional growth in terms of assets under management, while at the same time retaining a high standard of services to its restricted client base. This was made possible through a combination of minimum investment levels together with a high entry barrier in terms of client due diligence. In 2015, the company changed its name to Integra Private Wealth Ltd as part of a restructuring process that included the acquisition of a significant new client base while expanding its services to Uruguay and Argentina.

This move allowed the company to also expand its portfolio management team to cater for different client needs, usually reflective of the jurisdiction they come from. In 2019 the company achieved a huge milestone for a privately-owned boutique firm in celebrating its 10-year anniversary. Âť 45

NETWORK AND SERVICES Our impeccable reputation has also allowed the company to establish high level and, in some cases, exclusive relationships with some of the largest and most well-known global banks, money managers and industry professionals.

These include, among others, the likes of UBS, Citibank, Morgan Stanley and BlackRock.

Today, Integra Private Wealth has solid relationships with several large international banks and fund houses globally.

This direct relationship with such reliable counterparties, together with an increasing number of partners and industry professionals, allowed the company to provide a mix of unique investment solutions to our clients.

Within its propositions, Integra Private Wealth can cater for investors with different risk profiles, time horizons and market knowledge. The services range from money market cash management, income and growth portfolio

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management solutions, specialised alternative funds investing in assets ranging from gold to classic cars, market neutral alternative funds and other bespoke solutions.

Our portfolio management services can be offered either through an external asset management mandate on the client’s personal account or through our nominee service and omnibus accounts with top tier banks.

The company also offers a well-established service of ready-made fund solutions for asset managers or promotors that require an easy and cost-effective way of managing their client’s assets. Through its nine regulated SICAVs, the company today provides thirdparty portfolio management service to 24 professional investor funds that manage a range of different strategies including investments in derivatives, private equity, chattel, non-performing loans, high-yield distressed fixed income and Forex.

FINANCE THE ROAD AHEAD In the highly regulated world of finance, Integra Private Wealth has managed to retain independence while still offering flexible, innovative, reliable and rewarding solutions to our clients.

The company has withstood successfully the challenging environment caused by the Covid-19 pandemic and is using the current situation as a catalyst to expand services and client base even further through new strategic partnerships. These are exciting times for the company, and we are looking forward to taking on the new opportunities that lay ahead.

Find out more by visiting: integra-pw.com

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THE NEW WO R L D ORDER How has the foreign exchange market been impacted by Covid-19? RationalFX currency expert Ross Patten sheds light on the future of FX

A

S THE COVID-19 PANDEMIC forces restrictions upon our daily lives, society’s priority has been to help each other stay safe. But what about the economic impact of this unprecedented global health crisis?

Specifically, how has Covid-19 affected currency markets?

At RationalFX, we understand that these are challenging times for businesses of all sizes with international payment requirements. Businesses must remain optimistic and adopt a proactive approach to operational resilience.

For some, this has been easy. Online retailers, for instance, have been experiencing a boom in trade as we adapted to life in lockdown online retailers. Popular items include everything from books and games – to keep us entertained – to bicycles and exercise equipment to keep us active. Thankfully, it’s not all doom and gloom for cross-border businesses either. While the economic impact of the pandemic has already driven exchange rate volatility beyond the levels experienced during the 2008 financial crisis, bringing the need to manage currency market risk into sharp focus, opportunities to capitalise on favourable market movements will present themselves. After all, one currency’s loss is always another currency’s gain in the unpredictable world of exchange rates.

As Covid-19 continued its march around the world, governments were forced to close whole commercial sectors and order people to stay at home to contain its spread.

While necessary, this has severed supply chains, stalled economies and provided all the ingredients needed to trigger a recession. The economic fallout has precipitated historic fiscal and monetary action from governments and central banks worldwide. For example, US President Donald Trump signed the largest stimulus package in US history, while closer to home the Bank of England slashed UK interest rates to a record low.

Designed to help economies, these emergency measures have also caused currency markets to shift like never before.

Exchange rates constantly fluctuate in response to a range of economic factors at the best of times, from interest rates and inflation to GDP and consumer confidence.

The unprecedented market movements that the Covid-19 pandemic has set in motion will persist, until its vice-like grip on economies loosens. » 48

Empty streets of Manhattan’s Times Square in March 2020 49

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FINANCE

RationalFX says the Covid-19 pandemic has emphasised the need to adopt a proactive approach to currency risk management

SAFE-HAVEN CURRENCIES There’s an elite band of currencies that experience increased demand during times of economic uncertainty. Known as safe-havens, they typically remain resilient because they hail from economies that tend to be strong. So, when a ‘risk off’ mood envelops currency markets, demand for these currencies swells because they offer stability in an otherwise unstable environment, sending their value higher.

As the pandemic’s grip on the global economy started to tighten, safe-haven currencies like the Japanese Yen, Swiss Franc and US Dollar began their march higher. Unfortunately, there’s no such thing as a sure bet when it comes to currency markets. For example, companies and banks had been stockpiling US Dollars to cover debts and keep business flowing during the pandemic, propelling the currency higher, and denting the safe-haven status of the US Dollar.

However, fears of a shortage of the world’s most liquid currency were quelled by huge government spending pledges and co-ordinated efforts by central banks around the world to increase its supply. Nevertheless, the optimism generated by the US stimulus and global relief measures soon began to fade, as the list of countries on lockdown grew even longer and fears of a global recession intensified.

RISK MANAGEMENT STRATEGIES The extent of the still-ongoing crisis has emphasised the need for businesses to adopt a proactive approach to their currency risk management strategies.

Simply hoping the market will move in your favour will leave you exposed to the pandemic’s economic influence. In contrast, a well planned and executed currency risk strategy could mitigate the impact of currency market risk on your finances, by allowing your business to secure exchange rates now and in the future – saving you both time and money.

There is no ‘one size fits all’ approach to protecting your business’ finances from currency market risk, so consider working with a foreign exchange specialist, such as RationalFX, to develop an FX currency strategy that is tailored to your business’ risks and requirements. As well as providing an accurate insight into changing market conditions, we can help you deploy agile solutions that reduce risk and shield your international payments from unexpected fluctuations in exchange rates.

Take action to protect your finances by contacting: ross.patten@rationalfx.com 51

POWERED

BY

PRINCIPLES

V

Looking to the future with a fresh new look and integrated app, Volopa MD Graham Smith tells Burlingtons Magazine how their pre-paid card company is capturing a ‘grown-up’ customer base

OLOPA IS A DIFFERENT kind of fintech. Situated in historic Mayfair, we reside in a beautiful 150-year-old brick building full of character and history; the founder of the SAS kept his private offices here, and we even had our own undetonated bomb from the Second World War sleeping in the basement. Where other companies might invest in electric scooters or foosball tables to add the cool factor, we provide our team with practical mod-cons, such as a hot/cold/fizzy water tap to help reduce the use of plastic bottles, and a quiet park as our back garden to sit among the birds and trees for lunch. For the more adventurous, there’s also Hyde Park just across Park Lane.

In this way, we attract 21st century tech talent through our values and shared goals. With a management team that oozes professionalism and credibility, thanks to their collective 70-plus years in the financial and payment technology sectors, we’ve created what we feel is the perfect merger of cutting-edge technology and a real understanding of big banking.

At Volopa, we believe leaders at every level of the organisation should be responsive to a dynamically changing environment. We are an organisation run by people with a clear set of values, a vision with a defined strategy in place and, most importantly, sensitivity and empathy for our clients and the wellbeing of the team. From day one, our team members experience a professional, structured and vibrant environment that is supportive, challenging, and ripe for career and personal development.

Volopa’s shared vision and values is based on five pillars: excellence, transparency, teamwork, innovation and respect.

These guiding principles enable us to empower our departmental leaders to drive the business forward in a supportive and challenging environment so that we all grow together. The second value of transparency enables us to set a fixed maximum charge for our pre-paid card transactions, based on the current interbank exchange rate, an important factor as Volopa does not create its own exchange rate. Our transaction charge is clearly identified at the outset so clients know what they will be paying. Specifically, there are no hidden charges.

As a fintech, Volopa delivers technology-based financial services and holds FCA authorisation. Our flagship product is the Volopa multi-currency pre-paid card, which combines our capabilities for currency conversion and overseas payment service. Our business is entirely digital: all currency transactions are performed via our secure system links to our partners, service providers, banks, merchants and, of course, the global payment network operated by our card scheme provider. From this, you quickly realise a significant challenge as we compete among the plethora of companies vying for today’s non-cash payment business.

It’s important to us to know that our team benefits from an environment of high trust because that, in turn, is what we provide to every one of our customers. »

Our organisation shares a clear set of values, a vision with a defined strategy in place and, most importantly, sensitivity and empathy for our clients

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FINANCE

MOBILE THINKING In the hyper-connected world we live in, many consumer and corporate products must be controlled by mobile devices as our customers are constantly on the move. The challenge of creating that perfect customer journey – one that provides professionally laid out and easy to use products, gives the customer control, and has an underlying element and feel of security – is what we strive for. For us, it’s about providing our customers with products that give them something different, something useful and which provides them with true value – whether that’s financially beneficial, time saving, or fixes a problem they experience.

When Volopa launched nine years ago, the traditional approach of currency service providers was simply to race to the bottom. He who offered the lowest rate would win the business, even if it was loss-making. Instead, we decided to evolve. With fixed, low and transparent charges applied across the board, the Volopa card can hold up to 14 different currencies, is accepted by more than 30 million Mastercard® merchants worldwide, clears in 122 currencies, and the card is issued by Paysafe Financial Services Limited (pursuant to a licence by Mastercard International), which provides security for individuals and businesses alike.

Our business programme makes managing corporate expenses simple for our clients, by letting you set budgets, track company expenses in real-time, save on spending abroad and earn cashback on hundreds of venues nationwide.

Developed with the backbone of a highly secure and scalable proprietary infrastructure platform, the Volopa Apps are designed by our expert software architects with decades of experience in the financial and technology industry. With best-in-class foreign exchange capability – including the ability to execute transactions at spot interbank exchange rates – our foreign exchange rates update in real time to give our customers the best possible rates every time.

2020 VISION This year is an exciting milestone for Volopa as we re-brand and launch new services. We are launching our second-generation

mobile App in various guises, each with even greater focus on customer experience for consumer and business users alike. In addition, our more progressive customers looking to add more lifestyle benefits can enjoy customisations of our solution, specifically our App, to meet any unique requirements.

Based upon our App, additional features have been made available by one of our business clients to enable their customers to monitor elements of their own lifestyle, such as GPS tracking of their vehicles and live streaming of CCTV cameras in offices, homes, boats or any other asset they choose, through the App. So, when their customers are away travelling, benefitting from the low-cost, secure and easy-to-use Volopa multicurrency card, they can also monitor their assets, leaving them with the reassurance and comfort that everything at home is as it should be. A truly valuable tool for the regular traveller.

To complement these features, we deliver co-branded multi-currency payment cards to companies wishing to have their brand as the primary brand shown on the card.

This personalisation is used by our B2B customers to benefit from having their own in-house card and and access to our card management system to support travelling employees, who carry their company brand everywhere they go.

Taking this one step further, in the B2B2C environment, our business customers can create a co-branded card which they provide to their customers. Again, ensuring their brand is carried and seen everywhere their customers travel.

Our next project is to make our consumer product more visible within the marketplace. However, we will also drive hard into the B2B and B2B2C markets, helping ensure our business customers’ brands are more visible, with cards and Apps that remain ‘powered by Volopa’.

All our customers benefit from our core products of multicurrency payment cards and currency exchange as well as our ever-increasing selection of Lifestyle merchants, which today mainly comprises restaurants that provide seamless cashback direct to the cardholder, simply by paying the merchant’s bill with a Volopa card. Simple and secure.

Find out more or register now at Volopa.com 55

Matthew Field wears suit by Mason & Sons and Curry & Paxton sunglasses 56

FAST FASHION From perfecting your country weekend look to unleashing your inner Steve McQueen, Georgia Peck tells us how to drive our fashion forward in high-octane style

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THE GENTLEMAN DRIVER Think classic James Bond, or Sir Michael Caine’s enviable wardrobe in The Italian Job. The gentleman driver is always dressed impeccably in a perfectlytailored Savile Row suit accessorised with sharp shades and, most importantly, always oozes class.

Recommended mode of transport: Behind the wheel of an Aston Martin DB5, Jensen FF or the back of a Bentley Mulsanne.

1. SUNGLASSES: Curry & Paxton Dark Tortoiseshell Yvan Sunglasses, curryandpaxton.com 2. SUIT: Mason & Sons Mid-grey sharkskin button-3 Conduit Cut suit, masonandsons.com 3. SHIRT: Turnbull & Asser the Dr No white cotton shirt as seen on James Bond, turnbullandasser.co.uk

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Private White Moleskin Bomber 58

STYLE THE NO-WINDSHIELD ENTHUSIAST The goal here is Steve McQueen (right, wearing Persol Original sunglasses). Perhaps the greatest automotive style icon to have ever lived, the Bullitt and Le Mans actor was rightly known as the King of Cool. Go for a mix of heritage and sportswear to complete this look.

Recommended mode of transport: vintage Amilcar, Bugatti Type 27, Mercedes 300SL, Porsche 356 Speedster, Ferrari 250 Testa Rossa.

1. SUNGLASSES: Persol Original 714 Series (as seen on Steve McQueen), persol.com 2. JACKET: Private White VC the Suede Bomber in navy, privatewhitevc.com 3. JUMPER: Sunspel Men’s Fine Merino Wool Roll Neck Jumper In Dark Petrol, sunspel.com 4. SHOES: Sanders & Sanders Polo Snuff Suede Hi Top, sanders-uk.com

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Private White Suede Bomber 59

Purdey Men’s Cashmere Tweed Jacket 60

STYLE THE COUNTRY WEEKENDER A look that says you’ve escaped the city for greener pastures, a weekend romp putting your 4x4 through its paces in the fields, before whiling away Sunday afternoon at the local pub.

Recommended mode of transport: A Series Land Rover, Holland & Holland Range Rover, Bentley Bentayga, RollsRoyce Cullinan.

1. JACKET: Purdey Men’s Cashmere Tweed Jacket, purdey.com 2. CARDIGAN: Cordings Navy Fine Merino Reversible Cardigan, cordings.co.uk 3. BOOT BOX: Englana the Rupert – Heritage Collection, englana.com 4. CAP: Lock & Co Hatters Sandwich Tweed Cap, lockhatters.co.uk This feature originally appeared in Tempus Magazine; tempusmagazine.co.uk

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THE RISE OF

FERRARI

This Italian marque has dominated the automotive world both on and off the track since 1947. Rory FH Smith takes a look behind the legend

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HEN THE HAMMER fell on lot #247 at the prestigious Monterey Classic Car Auction in California on Saturday 25 August 2018, motoring history was made. Few car collectors would have believed it was possible, but a highly prized 1962 Ferrari 250 GTO (right), designed by coachbuilder Carrozzeria Scaglietti, had just officially become the most expensive car ever sold at auction.

Fetching a total of $48,405,000 (£41,462,270), the gleaming red monument to 1960s design excellence and motorsport prestige rolled off the auction block and into its rarified place in the record books – beating the previous record by a cool $10,290,000. The majesty surrounding the Maranello-based car empire had reached a new peak. The cult of Ferrari was in rude health.

Backtrack to 1947, in the sleepy town of Maranello. With the memory of the Second World War still fresh in people’s minds, Italy is recovering and repairing the damage done by five long years of death, destruction and conflict. Out of nowhere, a deep red coloured car with smooth, flowing bodywork, bearing a yellow badge adorned with a black prancing horse rolls through the factory gates on Via Abetone Inferiore. Ferrari is born.

From that moment, the Italian marque has built up a legendary status in the motoring world, with the vast majority of its racing cars and road-going products commanding eye-watering figures on the auction block. Only a handful of brands come remotely close to Ferrari’s cultural dominance, with its devoted following leading many a car enthusiast to wonder whether Ferrari’s success is based on a carefully crafted marketing myth or the manufacture of true motoring masterpieces.

Part of the answer can be found 100 years ago, when a young, enthusiastic 22-year-old signed a racing driver’s contract with Alfa Romeo. His name was Enzo Ferrari, and he made his sporting debut for the marque in Sicily’s notoriously challenging Targa Florio road race. Coming first in his category and second overall, Ferrari’s debut had been a resounding success. Despite earning 12,000 lire in prize money, the young driver said: “For me, the key thing was that my inclusion on the Alfa Romeo team became official that day”. From there, more success followed and from April 1924 to May 1928, Ferrari won every race he took part in.

Over the next 20 years, he worked his way up the ranks at Alfa Romeo from test driver to driver, commercial partner, and finally director of the Alfa-Corse department. »

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1962 Ferrari 250 GTO © Ferrari 63

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MOTORING

RACING DREAM Ferrari’s experience with the Alfa-Corse team clearly stood him in good stead for the rest of his career. Just a few years after he’d first established his eponymous company in 1947, the marque celebrated the first of a string of victories that would eventually result in its racing arm, Scuderia Ferrari, becoming the most successful team in Formula 1 history.

In the daredevil world of endurance racing, Ferrari won its first Mille Miglia in 1948 and its first Le Mans 24 Hours in 1949. In Formula 1, it claimed its first World Championship Grand Prix in 1951 and, by 1952, had won the world title with Alberto Ascari, a feat repeated the following year. At the same time, the company formed a relationship with coachbuilder Carrozzeria Scaglietti to form the bodywork of both its racing and production cars.

Located across the road from Ferrari’s garage, the coachbuilding company went on to shape the 1958 250 Testa Rossa, the 250 California Spyder, 250 Tour de France and the legendary 250 GTO, all of which have since become some of the most coveted Ferraris in existence. The result of this heady mix of motorsport success and road car renaissance was a threefold increase in sales between 1950 and 1960. Ferrari looked unstoppable.

But all good things must come to an end, and so they did – with abrupt force – on 14 August 1988. At the grand age of 90, Enzo Ferrari died in Maranello, the same place he’d founded his company 41 years before. Just weeks after his death, the Italian Grand Prix went ahead as planned at Monza and, despite the tragic circumstances and perhaps determined to honour their founder’s legacy, the Ferrari team claimed both first and second place. It was the only race McLaren failed to win that season. »

Clockwise from far left: Enzo Ferrari; with Ferrari engineers; at a practice race in Modena; with right-hand woman Lina Lardi ©Ferrari

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THE CAR’S THE STAR That same year, fellow Italian car giant Fiat increased its 10% in the company to 90%, leaving the remaining shares in the hands of Ferrari’s son, Piero. Despite the shift in control and death of its founder, the 1980s and 90s gave way to some of the most consistently brutal road cars to bear the prancing horse badge. Starting with the 288 GTO in 1984, the iconic F40 followed in 1987 – the last car Enzo Ferrari would see launched. The mid-90s saw the F50 supersede the F40 until the radical Enzo – named in tribute to the late company founder – reset the benchmark for hypercars in 2002.

For the vast majority of Ferrari fans, however, the 2000s were eclipsed by one man: Michael Schumacher. Between 2000 and 2008, the marque won a total of 13 Formula 1 world titles, with Schumacher taking five drivers’ titles in the same period. Like Mercedes’ dominance today, the ‘Rosso Corsa’ shade of red was inescapable on the world motor racing circuit during the first decade of the new millennium. On the back of such success, the marque capitalised commercially, expanding its empire of Ferrari stores selling merchandise and branded products.

Today, Ferrari is a very different beast to the one reared by that young racing driver from Modena. It is remarkable that the rise of a small garage making racing cars in the wake of the Second World War to the most recognised carmaker on the planet can be so firmly attributed to one man: Enzo Ferrari.

Widely known as ‘il Commendatore,’ the motoring mogul’s unwavering commitment to racing undoubtedly resulted in its unparalleled motorsport success. “[It] is a great mania to which one must sacrifice everything, without reticence, without hesitation,” he once said of the sport.

Of course, commitment and good results aren’t always enough on their own. Ferrari was also a natural-born salesman, with a penchant for style, like any self-respecting Italian.

“If you like this car, we’ll make it. If you don’t, we won’t,” he would utter to prospective customers, presumably with his trademark sunglasses shielding his eyes. To this point only, perhaps there is some truth in Ferrari being labelled a marketing myth. But take into account the unparalleled motorsport success, the beauty of its long lineage and the frenzy that follows any new product launch, and the Maranello marque is every bit the motoring masterpiece it appears to be.

As far as businesses go, Ferrari is a fairy tale come true in the automotive world. In the words of its charismatic founder: “If you can dream it, you can do it.” ferrari.com

This feature originally appeared in Tempus Magazine; tempusmagazine.co.uk 66

MOTORING

Above: Formula 1 champion Michael Schumacher drives the Ferrari F2004 Š LAT Photographic; Left: the Ferrari Factory in Modena Š Ferrari 67

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BUSINESS

ELECTRIC SKIES Gabriella Somerville, founder of ConnectJets, has been an aviation pioneer for two decades.

Here, she tells Lysanne Currie why she’s now using her expertise to advance environmentally friendly air travel

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ITH AN UNCLE who was squadron leader in the Red Arrows and a father who took her to air shows from the age of two, Gabriella Somerville (below) surely has jet fuel in her blood. Unsurprisingly, she’s seen her career soar over the last three decades, from a cabin role with British Airways to promotions and events manager at Virgin, before changing flight lanes into private jet charters and sales.

A protégé of Sir Richard Branson, Somerville learnt firsthand the Herculean effort and tenacity required to make an aviation start-up work. “You have to keep innovating until you get the right formula,” she said, noting that people thought she was “quite mad” when she founded ConnectJets in 2009, with her own capital, during one of the worst times in aviation history. “But it presented opportunities. We were there to solve problems that had come about because of the economic downturn. With marketing budgets retracting and customers selling off their aircraft, I’d go in and offer solutions. Two years later, we’d turned over £4m with zero debt.”

In 2015, she won an honorary global exemplary award for entrepreneurship from the EU Women Inventors & Innovators Network for her achievements in an industry crying out for more gender parity (worldwide, fewer than 5% of pilots are female). And now she’s launched a new business, ConnectSkies, which connects people looking for sustainable aircraft.

It was when Somerville was unexpectedly laid up for a few weeks last summer that she devised her plan for electric flights. In and out of hospital for four operations, she realised the potential of sustainable transport in aviation. “You have a lot of thinking time. Everything slows down. And that’s when ConnectSkies and the idea of the airline came.”

Somerville is talking about environmentally conscious aircraft – electric planes (pictured left). “People are sort of scared about just being held in the air by electricity,” she says. “But the great thing is that it’s actually a lot safer because you haven’t got fuel. They will be much safer than any helicopter. And the sustainable aviation market is going to be huge: £3.5bn in the first couple of years.”

A completely separate venture to ConnectJets, her new business is focused on customers’ growing hunger for ecofriendly travel. “The environmental agenda has certainly highlighted a cause onto a red level,” she says. “People have woken up from a bad hangover, and are feeling a bit more conscious about flying.” » 69

However, as she says, “aviation has to continue, you cannot cut it out because you’ll stop advancements in tech, medicine and science”. So, rather than just reacting, “the aviation industry must now create a roadmap. A new message to preach our congregation and say, ‘Look, we understand, we’ve taken it all on board, but let us tell you a little bit about what the industry has done, what it is doing, and what it is going to do.’

“If you choose the right aircraft type, the right routes, and if you market the price correctly, there’s a great opportunity there,” she says. “It’s like starting a religion in one sense: you’ve got to create believers and that’s got to be done at least three years before we take [the planes] to market.”

She’s already had interest from Vertical Aerospace, the British aerospace manufacturer based in Bristol, that designs and builds vertical take-off and landing (VTOL) electrically powered aircraft. “They know this is a slightly odd-looking aircraft, and a slightly odd concept for them to get their head around [but] I think they’re quite happy that we could really educate the market.”

Somerville wants to advise the big multinationals, “because they’re now thinking about their next schedule for business aviation, and where they’re building their next airport. PostBrexit, if we really want the UK to be prosperous, then this has to be the thing that we’re looking at. The fact that these aircraft can go into really small areas (rooftops, carparks) is creating a much more viable business model for transportation that I’ve ever seen before. Also, Britain may actually be the biggest supplier of sustainable aircraft jet fuel, so that’s another postBrexit industry worth considering.”

To realise these dreams, the industry needs to be lobbying Parliament, she says, and applying pressure to them. “I’ve written to the government about it. Ultimately the aeronautic industry needs to come together as one voice. The problem is, we’re a little bit fragmented; there’s such a competitive spirit within our industry that we’ve not really got a united front in one sense. We all think we’re going to nick one another’s flights – but we’ve all got to work together.”

Somerville also hopes today’s problems may also present future opportunities: “On the back of the Covid-19 evacuation operation there’s a big opportunity right now for aircraft,” she says. “Thomas Cook and Flybe have gone under, and there’s an opportunity to create a really niche airline based on the private charter commercial model such as Titan Jets.”

For ConnectSkies she wants to create an open source forum, “a place where people can understand the evolution; where do the planes get their sustainable fuel from, who does the test flights… so by the time it comes to market, everyone will have enough knowledge to absolutely accept it’s safe”.

Somerville is currently looking at companies that have a multi-disciplined team of people from different industries and sectors to make a viable product. “I’ve seen a lot of people with a pipe dream. I’m looking at credible companies with the financial backing, who have the business acumen,” she says. “In the next year I would really like to be a voice for the aviation industry.” connectskies.com This feature originally appeared in Tempus Magazine; tempusmagazine.co.uk

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Vertical Aerospace's VTOL electric aircraft

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How to beat your biggest banking challenge yet Global contingent resourcing solutions Momenta explains the importance of starting your Libor journey now

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LL PLAYERS IN the financial services sector are facing the biggest change since the implementation of the Euro, as firms start to transition away from the London Inter-Bank Offered Rate (Libor). $350trn-worth of financial contracts are currently treated under the Libor rate, highlighting the sheer volume of debts where the index rates should be switched.

At Momenta, we recently conducted a survey that revealed 67% of respondents felt their biggest challenge, with regards to the transition, would be centred around the additional pressures placed on them as a result of the Covid-19 outbreak. The chances are, if you work within financial services, you have been impacted significantly by the pandemic, and have put your Libor transition plans to one side – either until the industry stabilises or your firm is in a better position to cope with this change. The FCA and the PRA issued letters to banks and insurers explaining their expectations of institutions’ transitional planning for 2020 regardless of Covid-19 pressures – so if you 72

are still thinking of reviewing your transitional plans in a few months’ time, think again.

The transition process will be lengthy and require additional resources and expertise.

Unfortunately, there is no quick-fix solution, or a one-size-fits-all approach that can be implemented within an organisation. This transition will require a phase-by-phase review to ensure that all the aspects of it are fully met. So when should organisations start implementing this lengthy process? The answer is simple – as soon as possible.

The first step is sourcing how many contracts you have that are tied to Libor. It may be easy for some but, for others, it will involve the laborious task of sifting through all contracts from 1986 until today that have any relation to a Libor index. Ideally, you want to know how many contracts will require revision because from this point on your contract analysis should begin, so the sooner you understand what work needs to go into revising your contracts, the better.

One of the biggest challenges will be that

of repapering and fallback language. Contracts need to be reviewed through two lenses – legal and financial – in order to provide the firm with an understanding of both the risk and value of the transition. The new RPRs will be calculated differently to Libor, so contracts created under the new rates will differ from those under Libor rates. Repapering and fallback provisions will need to be analysed and completed for each contract.

Certain contracts will require additional work, as it is estimated that 10% of GBP Libor indexed contracts will not be able to use the Sterling Overnight Index Average (Sonia) as a suitable alternate reference rate. Should this be the case, expert personnel will have to advise on what the next best alternative could be for both counterparties. With the revision of the fallback language and repapering, the new calculation will need to be worked out and attached to the contract.

At the time of entering into long-term Libor-indexed contracts, certainly before 2013, it is rather unlikely that parties will »

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have contemplated that the reference index would cease to be published during the life of the contract. For all financial products such as bonds, IRSs and FRNs etc., the replacement of Libor with a different index (such as Sonia) will change the value of the transaction if that replacement index is simply substituted.

Should this happen, as a result of the change, one party will gain and the other will lose.

Sonia is very different from Libor: Libor is a forward-looking term rate, whereas Sonia is a backward-looking overnight rate. Sonia is also a smaller number than Libor, and so one cannot be simply replaced with the other.

If it were, then the value of any particular product – such as a loan, bond, or swap – would change. Making the change while keeping value constant is one challenge, and the FCA has said that customers should not be disadvantaged by the change but, given 74

that the calculation is complex, firms will need to take steps to ensure a fair outcome is achieved.

Getting to grips with the new calculation will be another challenge. As you are working with both forward and backward rates, complications will persist. The trick is to ensure that you get the calculation or the swap correct the first time, as companies really only have one chance to get it right.

Internal valuation models will need to be adjusted for replacement RFRs. The transition to an overnight RFR will lead to changes in the value of existing positions, which could be favourable to counterparties, meaning additional negotiation will be required.

Organisations will need to engage with each of the counterparties to change the contracts amicably, leaving enough time for negotiations and perhaps disputes. The discussions are

likely to be complex and technical, and additional legal expertise will be required.

Organisations will also have to implement a thorough communication plan to ensure that any clients they may have that are attached to such contracts are not only aware of the Libor changes and deadline, but also aware of how it will affect their contracts in the future once they have been ‘reset’. Communication with the end customer regarding their new rate is key, and regulators will be watching closely on this point.

The December 2021 deadline is extremely important and everyone should engage with their counterparties long before then to settle any issues. Leaving it until the very end could effectively mean that what the counterparty says, goes. This transition may be a daunting one, but with the right expertise and resourcing, it can also be swift, effective, and efficient.

FINANCE

Sonia is very different from Libor, and so one rate cannot simply replace the other

HOW CAN MOMENTA HELP YOU? Momenta is a global contingent resource solutions firm.

For over 30 years we have been partnering with companies in the financial services, legal, technology, and training and development sectors to cost-effectively provide the right people, with the right skills, at exactly the right time.

Given the mammoth task ahead, Momenta is partnered with one of the leading experts acting and advising on issues associated with the Libor transition, and have built teams to support in all aspects of the transition.

This provides a holistic solution from start to finish, avoiding any time wastage and helping you to efficiently and effectively transition your contracts to a new index by the deadline.

We would welcome a call to discuss your Libor plan and how we can assist you. To set up a discussion, email: Libor@momentagroup.com 75

ASK BORIS Burlingtons’ resident bulldog is here to answer your biggest questions...

Question: How can I start a wine collection that gives me great results?

Wine is known as a passion asset – just like art or classic cars – and starting a collection is a great way to begin building a new avenue for investment by tapping into what you love. It’s also a valuable investment, since fine wine consistently outperforms other financial indices – the Liv-ex 1000 index delivered a 46.15% ROI over the last five years.

One of the key things to know when diversifying your portfolio with a foray into fine wine, is that your collection’s returns will become less volatile over time. This means that, generally, you will want to keep your wines for five to 10 years before you start seeing truly worthwhile results, although spikes in the value of collectible vintages aren’t uncommon at any age.

There are various ways to start your wine collection. Perhaps the easiest is to curate a wine cellar from a variety of fine wines, depending on how many you can store correctly: temperature and humidity, light and vibration, and how bottles are stacked must all be taken into account.

While you could splash £10,000 on a bottle from Domaine de la Romanée-Conti (one of the world’s best wine producers), a better option may be to purchase between five and 50 age-worthy wines priced between £500 and £2,500. This will provide an excellent foundation to your growing 76

collection. Look for wines like 2008 Dom Pérignon Champagne, 2015 Aubert Lauren Vineyard Chardonnay, 2010 Chateau Pichon Longueville Comtesse de Lalande or 2012 Opus One, Napa Valley. Older wines – such as 1959 Château Lafite Rothschild, 1962 Château Latour Bordeaux or 1982 Château Haut-Brion Pessac-Léognan – are also safe bets when beginning your cellar.

Another way to start is to look for distinguished bottles based on what’s important to you. Search for a style or grape varietal that you enjoy, or look for vintages that share an anniversary or birthday of a loved one – these sentimental connections are no bad thing in a passion asset. As your collection grows, you’ll get to know what makes a wine collectible, from critics scores to the ‘three Ps’: production volume, producer reputation and provenance.

Wine can, of course, be a leap of faith, since it’s difficult to know exactly how well a vintage will age or to guarantee it will grow in value.

Burlingtons’ private office services can link you with expert oenologists to coach you through what to look for and build your confidence.

But the best tips for getting great returns on your wine? Resist the urge to ‘taste test’ all of your investments – if you can!

For expert investment advice about the questions that have been hounding you, contact Boris by emailing: info@burlingtons.club

urlingtons Group is a multi-specialist group of professionals. We deliver highly personal integrated advice to our clients’ business and personal interests across the globe. Our solutions for your business and private interests bridge legal, tax, accounting, real estate, IT, fiduciary services and our own private office.

Our Burlingtons Club hosts an international private community of carefully selected professionals sharing the highest standards of excellence and client care. Drawn from lawyers, accountants, wealth managers, hedge funds, tax advisors and other experts across the globe, we come together to work and pool our collective skills, expertise and experience to provide added value to our client.

Our global reach, contact base and influence is not only headquartered in the heart of London, but we also have offices in Almaty, Moscow, St Petersburg, Geneva, Malta and Gibraltar with a wider international reach through Burlingtons Club.

Visit us at burlingtons.group

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British Engineering Tested Beyond Endurance