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Limits Ueli Steck: In the mountains there are clear limits James Nachtwey: Reality, up close Macro: Monetary policy and exchange rates: What is the fair value of a currency?

High-flyer Christoph Franz: Flying – a moment of leisure Peter Blaser: Experiencing the world by balloon Macro: New reality in investment

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“I like flying home best.”

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High-flyer Christoph Franz: Flying – a moment of leisure Peter Blaser: Experiencing the world by balloon Macro: New reality in investment

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Editorial demonstrates his outstanding talent. But all too often, we witness a flight of fancy, then a sudden crash, as the hoped-for Icarus becomes a fallen angel instead. The stakes are high.

Christoph Franz is a high-flyer in both senses of the word: As CEO of Lufthansa, the top executive repeatedly demonstrates his flair for the correct altitude, turning in a convincing performance year after year as he relies on foresight and intelligent navigation. Our dialogue with the father of five children can be found on page 4.

Dear readers, Uncertainty in the investment business goes on. The debt problem remains still unsolved and is now accompanied by significantly weakened global economic growth. How should the current situation be seen from an investor’s perspective? What conclusions can be drawn to ensure sustainable asset protection? Read more about this, starting on page 20. Christophe Grünig, Head of Wealth Management, sets out the current options. Especially in this uncertain market environment, an open exchange between clients and their financial advisors is essential. If you have any questions, please contact us. Your concerns are our concerns.

The passion of Peter Blaser is fascinating as well as moving. The Emmental native, heading his family business, loves nothing more than discovering the slowness of the world by hot air balloon. For Blaser, that is pure pleasure.

Enviable.

A high-flyer is a rare phenomenon, whether in sports, professional life or art – but also in everyday life. With a strong supporting environment, the high-flyer repeatedly

Peter Fanconi Head of Private Banking peter.fanconi@vontobel.ch

Photo: Getty Images

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The Swiss former world duathlon champion Olivier Bernhard is also in take-off mode. With his running shoe “On”, developed in Switzerland, the athlete illustrates very well how perseverance pays off.

We wish you an interesting read.

With best regards,

Content Theme: High-flyer ∙ Flying – a moment of leisure ∙ Flying – of dreams, nightmares and records ∙ Experiencing the world by balloon ∙ Sure-footed on the road to success ∙ Skills count, not IQ

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Macro: New reality in investment

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Opportunities: Energy efficiency

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Blue Pages: News from the Vontobel Group

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Care & Share: Taking time for the beautiful things

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Column: The high-flyer is a message

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Culture and cuisine: Inside Zurich

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Theme

As the CEO of Lufthansa, Christoph Franz heads one of the largest airlines in the world. We spoke with this top manager about the challenges his industry faces, his great responsibility and the sources of energy that inspire him.

blue 4/5

Interview by Peter Fanconi and Renata Fäh

Theme: High-flyer of the airline industry

Flying – a moment of leisure Christoph Franz, you are considered the high-flyer of the airline industry. Who is your personal high-flyer?

I’m not searching for a hero. But there are certain activities that I admire. Entrepreneurs who have built up a lot in their lives – people who can serve as role models. I want to stake a claim of leaving a positive contribution behind me – in the world and in my own company. This doesn’t necessarily have to be a physical contribution; it could also be the corporate culture or the fact that I have helped other talented people advance along their path.

You lead one of the largest companies in Europe. How does having responsibility for 120,000 employees affect your life?

I’m comfortable in my job and can handle this responsibility, even if it is of course something I always carry with me.

But like any CEO, I don’t run the company in abstract isolation; essentially, I have the task of leading managers, who in turn lead managers and employees themselves. Many of our employees have to manage their work very autonomously – just think of the flight attendants on board, or the pilots. Everyone is doing his or her part to make Lufthansa successful. We are all working on one product.

What makes Lufthansa so special?

One of the most distinguishing features is the size of the network that the airline offers. Together with our Group airlines, Lufthansa has the densest network in Europe, as well as from Europe to the rest of the world. That’s why we’re the first choice for many customers. On a daily basis, we transport on board our aircraft the equivalent of a city not much smaller than Zurich – around 270,000 passengers every day. In addition, we always offer high quality, whether it’s with our low-cost airline Germanwings or our premium airlines Swiss and Lufthansa.

You have transformed Swiss into a thriving enterprise.

How did you know what had to be done?

A turnaround like that is not attributable to a single person. I was supported by a motivated team. During the

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restructuring, three factors especially helped us. First the turnaround itself. Above all, this was about restoring the confidence of the employees, who had suffered during the crisis period. Second, from 2004–2007 we benefited from a favourable economic environment. And last but not least, it was the right strategic decision to integrate Swiss into the Lufthansa Group, allowing us to realise synergies.

How would you describe your emotional connection to Swiss today?

My connection to Swiss remains close. This is understandable when you’ve worked in a company for a long time, but especially when it was also in such a difficult and formative stage. But now I’m responsible for the entire Lufthansa Group. All the Group’s airlines and companies are near and dear to me.

Once a year, nearly every second person on earth will fly on board an aircraft.

Air travel is a catalyst in our globalised world. Where is this journey leading us?

Worldwide, the total airline passenger volume is 2.4 billion people a year – so once a year, nearly every second person on earth will fly on board an aircraft. That’s an impressive number, because it illustrates so vividly how important aviation is. We have become a means of transport for Everyman. And indeed, this has a tremendous impact in driving globalisation. In future, we will also move people, information and goods around the world. With the increasingly global division of labour, the network enabling this mobility will become even denser. This is why forecasts all point to the continued growth of aviation. That’s a good starting position for our industry to be in. At the end if the day, we are making the world smaller.

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Photo: Vera Hartmann, 13photo

Together with their Group airlines, Lufthansa has the densest network in Europe, and from Europe to the rest of the world.

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The sky is the limit?

No, there are limits. In terms of emissions and infrastructure. In the case of CO2 emissions, a lot has transpired.

Over the last 40 years, our industry as a whole has reduced specific jet fuel consumption by 70%. Lufthansa has cut consumption so much in the past twenty years that, at our present 4.1 litres per 100 passenger-kilometres, we are already below the target set for the automobile industry to reach by the year 2015. In other words, if you consider our entire fleet, we now produce on average as little CO2 as a Toyota Prius, on a per passenger basis.

Aircraft noise can be disturbing for those affected.

Do you have some sympathy for this problem?

Of course I do. That’s why we are not only putting more environmentally friendly aircraft into service, but always quieter aircraft as well. This is necessary in order to be accepted by the people affected by noise in urban areas.

Aviation needs to be compatible with the concerns of the people living around the airports.

You mentioned infrastructure before. Will airports be approaching their limits soon?

In terms of infrastructure, there will be bottlenecks.

Airports will, in fact, bump up against their limits. If, for example, you don’t build any new runways, you can slow down the development of an entire country. This is a topical issue in Switzerland as well. Bear in mind: the growth will still take place. The crucial question is where it will take place, and to what extent certain markets are willing to forgo this engine of prosperity. In the Middle East, for example, the countries there regard air traffic as drivers of development. People there are grateful for the selfflagellation we undergo here in Europe. That’s because this is accelerating the shift to their hubs, which are being built up with money from government coffers. We can only look at this development with a great deal of concern.

In what way?

Let’s take the example of Swissair. Switzerland, as a country, underwent an existential experience at the time Swissair was grounded. The country was asking itself, what happens now? Are we going to be decoupled now from the global economy? How should we stay connected? How should we be present on the map of global mobility? Many things are seen from a different perspective when that happens.

just an ordinary passenger like anyone else. The airline industry is known to be below average in terms of profitability. We have a very highly developed sense of cost awareness. But more than that, during the flight, contact with our employees and the experience on board are very important for me.

In future, we will also move people, information and goods around the world.

Do you have a favourite destination?

I like flying home best. For that reason, Zurich is my favourite destination. Even after my move to Lufthansa, Zurich has remained our home. We didn’t move, because our kids are going to school here. I have got used to the commute, and we feel very comfortable in Switzerland.

Do you ever experience fear when flying?

No. I have no fear of flying. I enjoy flying. When you’re gliding through the air on a long-haul flight, seemingly motionless, you often don’t even realise that you’re flying.

But if it gets turbulent, for example just before landing, I remember that I’m in an airplane, floating in the atmosphere. Then I’m aware.

Deutsche Lufthansa AG, based in Cologne, is one of the largest global corporations in civil aviation. It is the initiator and founding member of the Star Alliance, the world’s largest airline alliance. Among the firm’s numerous subsidiaries and Group companies are Swiss, Austrian Airlines and British Midland. The main business activity of the widely diversified airline group is scheduled air service. Lufthansa employs 117,000 people worldwide, flies to 211 destinations in 84 countries, and has a fleet of about 750 aircraft. On some 900,000 flights per year, it carries 100 million passengers and two million tonnes of cargo.

In retrospect, do you feel that this experience had a positive effect?

In some ways it was a salutary shock. That is evident by the fact that today, the mourning for the end of Swissair is no longer centre stage. Rather, a sense of pride and satisfaction has grown again that the crisis has been overcome and an efficient airline has taken its place.

As a CEO, you don’t fly by private plane?

Of course not, that’s completely out of the question. I’m

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Photo: Deutsche Lufthansa AG

How often do you fly yourself?

I commute to the office by plane and became a frequent flyer in the process. In addition, meetings of employees and the association are held all over the world. So I’m an intensive user of our product. I also fly with other airlines in order to get a continuous feel for where we stand and where we can become even better. I allow myself to be inspired by other airlines.

The bird in Lufthansa’s logo is a crane, symbolising technical precision, aviation competence and safe air travel.

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What advice would you give to a frequent flyer?

I always try to experience a flight as a leisurely moment in time. This is something I would recommend to any passenger. In our hectic lives today, we’re always reachable. Flying has remained one of the few times that you have for yourself when you cannot be reached. That’s a privilege, and you should enjoy it. It’s one of the nicest aspects of flying.

How do you spend your time on a long-haul flight?

Usually I have my office with me. I read a lot, work through my mail, talk with the crew or even take a short nap. When I’m flying I also very much enjoy eating in peace. From time to time, I also like to go visit the pilots in the cockpit.

Would you like to take over the controls yourself?

I would. But you don’t get a pilot’s licence overnight. It takes a lot of hard work, and you have to invest a lot of time – which unfortunately I don’t have at the moment.

Maybe I’ll learn to fly later.

You are also very interested in music, art and literature.

Is this a compensation for you?

Absolutely. It’s very important to me that my working life doesn’t turn me into a one-dimensional person. I want to keep in touch with the different facets of life and all its inspirations. So I maintain a healthy distance from the company.

Are you also off exploring the whole world when you’re on holiday?

On holiday, we like to go to our small summer house in France. It may seem boring, but we think it’s wonderful to go back there year after year. That’s where we can let our hair down and our minds wander. In France, I occupy myself with totally different things than I do in my normal everyday life. For example, I pick apples, or do some handiwork, or putter in the garden. For me, this provides a great balance to my professional life. Like this, I’m able to preserve niches of leisure. They’re very important to me.

One of the nicest aspects of flying is that you have time for yourself and cannot be reached.

Christoph Franz, 51, has been Chief Executive Officer of Deutsche Lufthansa AG since 1st January 2011. Franz was already working for Lufthansa from 1990 until 1994, when he moved to Deutsche Bahn. There he served as chairman of DB Reise & Touristik and was a member of the parent company’s Executive Board. In 2004 Franz was appointed CEO of Swiss International Air Lines, which he successfully restructured in the following years. Christoph Franz is married and the father of five children. He lives in Zurich.

Photo: Keystone

Do you still have time for your family? You and your wife are raising five children.

My family would probably say that I don’t have enough time. Maybe they’re right. I think there are phases in your life where the pendulum between family life and professional life swings in one direction or the other. What’s important is that neither side gets short-changed. If you pull back from operational responsibilities and you are no longer so busy on the professional side, then there should be more left to you than just a void. After all, at the end of the day, your professional life is only a narrow slice of your life.

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Theme

From Icarus to Concorde: the dream of flying has motivated humanity since our earliest days. Herewith a few interesting factoids about flying and aviation.

blue 8/9

By Gregor Ingold

Theme: High-flyers in the air and on the ground

Flying – of dreams, nightmares and records Atlanta: the Croesus of passenger traffic With 89.3 million passengers transiting the airport every year, Atlanta is the busiest in the world. The reason: Atlanta serves as a stopover for many US domestic flights.

Following Atlanta in the league table are Beijing, Chicago and London Heathrow. In 2010, Switzerland recorded a total of 40 million air passengers, whilst Germany logged 167 million.

The aviators of the animal kingdom: endurance and quite a bit of speed Among birds, the peregrine falcon achieves the highest speeds – in a dive it can hit 300 km/h. On the other hand, bar-tailed godwits fly up to 11,700 kilometres without “refueling.” On its 5 to 9-day migratory journeys between New Zealand and China, they do not make a single stop – not to eat, drink or sleep. Insects also astonish researchers in several ways: Their refined wing structure, flying techniques and means of storing energy serve time and again as models for developments in aviation.

Photo: Getty Images

Photo: Corbis

From a dream to a mass phenomenon The first successful flight with a hot air balloon took place in 1783, and in 1903 the Wright brothers achieved the world’s first powered flight in an airplane, setting off a rapid development in the years that followed. In particular, the First World War triggered a number of innovations in aviation. But its first real breakthrough came 15 years later, as more and more airports were built and the first aircraft were manufactured in large series. Beginning in the 1970s, flying was no longer just reserved for the upper classes, and the boom that started in the 1990s continues to this day.

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Extreme landing Enormous in size, with flat, unbuilt areas for taxiing and runways as smooth and even as glass – that’s how we imagine an airport. Not every airport meets these expectations, though, and for many pilots, some landings are truly challenging. Courchevel airport, for example, sits at 2,000 metres above sea level. Compounding the difficulty presented by the altitude and the nearby Alpine massif is the length of the runway, which is only 537 metres long and includes a kink from where it slopes down in a 19% gradient. Takeoffs are downhill and landings uphill. On the Caribbean island of St Maarten, on the other hand, the jets roar in only a few feet above the beach and the street before they touch down on the runway, only ten metres beyond the strand.

Photo: Keystone

Photo: Getty Images

Aircraft and fuel A Boeing 777-200LR can put up to 17,446 km behind her in a single hop – almost half the circumference of the earth. Calculated on a per seat and kilometer basis, 1–2 decilitrers of fuel are consumed by jets on a short flight.

On long-haul flights, however, this figure is reduced by up to 80%, meaning that planes can almost match the petrol consumption of a fully loaded car. Looking at the cargo sector, however, the comparison is not so favourable. Here, flights use 20 to 50 times as much energy as moving the same goods by rail or lorry would require, and 100–200 times more than sea freight.

Teamwork at 1000 kph The aerobatics team Patrouille Suisse is the pride of the Swiss Air Force. With a distance of only three to five metres between them, and at speeds from 200 to 1,100 kilometres per hour, the six pilots execute spectacular formations and figures, only 30 to 100 metres above the ground. This requires the utmost precision. In their F-5E Tiger II jets, all the pilots follow the leader, orienting themselves using visual landmarks. The aerobatics team Patrouille Suisse was established in 1964 and had its debut appearance at the National Exhibition that same year in Lausanne. For decades, it has been one of the best such teams in the world.

Photo: Keystone

Photo: Plainpicture

When flying becomes torture Panic, sweaty hands, dizziness, palpitations, nausea … these are just some of the symptoms of the fear of flying.

Depending on the source, 15–30% of the population suffer from “aerophobia,” which is not only the fear of a crash; for many sufferers, it is the loss of control when they are sitting in an airplane that they are afraid of. Fear of flying is not usually associated with a specific negative experience, but can occur suddenly and unexpectedly.

One prominent example: it took the Peruvian football player Guerrero five tries to return to his club in Hamburg from his native Peru. He finally managed to arrive – two months late.

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Theme

In the life of Peter Blaser, balloons play a central role. He leaves the competitions to his son today, allowing him to devote himself all the more intensively to travelling by balloon to foreign countries – a slow and unadulterated way to get to know another culture.

blue 10/11

By Dominique Meier

Theme: The slow high-flyer

Experiencing the world by balloon One associates high-flyers with altitude and speed. In the case of Peter Blaser, this is only partly true. Yes, he is a high-flyer, having been an avid balloonist for the past 22 years, and thus someone who regards the world from far above. But it is at a comfortable slowness that he moves along over varied Swiss landscapes as well as those of several other countries. He has already visited forty countries by balloon. He was particularly struck by Burma.

In his professional career, however, it’s been a hectic pace.

At the outbreak of the oil crisis in 1973, he joined the family business, Blaser Swisslube, taking responsibility for the lubricants division. In this difficult situation marked by soaring costs, he proved himself as a successful visionary.

He expanded the division and developed the company from a Swiss firm, based in the Emmental and primarily supplying Swiss farmers, to an internationally present and much sought-after provider of cooling lubricants for metal processing companies. Under Peter Blaser, the company grew from 150 to 500 employees. A year and a half ago, he passed the operational reins to his son and serves now as Chairman of the Board.

Despite their very different tempos, Blaser definitely recognises parallels between business and ballooning. “In business – as in ballooning – you find yourself in a situation in which you know the general direction things are going in,” he explains. “And based on this information, you have to determine a course to be followed. You have to make lots of small adjustments, and sometimes it just takes a lot of patience.”

Peter Blaser appreciates the challenges experienced in the balloon gondola just as much as those in the business world. As a pilot, it’s not possible to put your feet up, sink into a feeling of sweet idleness, and just drift along.

Searching for the right wind that will carry the balloon to

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the desired target, and maintaining the heat, both keep you very busy. Besides, just leaning back and enjoying it would not quite fit the personality of this bustling 66 yearold entrepreneur.

An excited satisfaction Flying always fascinated Peter Blaser. Taking extended flights by prop plane had already been a favorite hobby for a long time. His passion for balloons took wing relatively late in life. Blaser first came into contact with this contraption, one of mankind’s oldest means of flying, because of a promotion at his company. After just a few minutes on his first training flight, he was taken. Since then, ballooning has been an important part of his life.

“Without a bump, you slowly ascend, the world shrinks away below you, and you look down on everything as if from a balcony,” Blaser describes the experience. “You’re overcome with an excited satisfaction. I ask myself where the wind is taking me … how precisely I will be able to manage to steer us toward the destination.”

Gaining new perspectives and executing visions is a need that Blaser has long satisfied through travel. After his studies, he and his wife set out for India in one of the legendary Citroën 2 CV, a car known affectionately in German as “the duck.” The couple did not quite get all the way there, but still managed to reach Afghanistan. Today they are particularly fascinated by Burma country even further to the East that they have now visited thirteen times.

Each time, they spend two to three weeks traveling in the country. When they go there, seven balloons are in their baggage, and about 25 friends accompany them.

What impresses Blaser about Burma is the richness of the country’s Buddhist culture, as well as its landscape. What stays with him even more, though, are the many encounters with locals that he has had the chance to experience.

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Photo: Emanuel Ammon, aura

Excited contentment: Peter Blaser hovering over the treetops of Bagan, Burma, in his balloon.

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“The people are incredibly open and happy to make contact,” he says. “It’s a great give and take. Each time you meet someone, it’s unique in some way.”

years. His son Marc Blaser, however, has followed in his footsteps – in the business as well as in ballooning – and is the current Swiss Number Two.

It is important to him to experience the country unadulterated by mass tourism, to make discoveries and meet people. For this, the balloon is well-suited. “People feel a lot of sympathy and goodwill toward balloons,” he says.

“They’re so simple; they don’t set off any feelings of apprehension. Whenever a balloon lands, people of all ages come running up … They ask questions, help you clear everything up. You easily get into conversations.”

Blaser has infected many of his professional colleagues with his enthusiasm for the slow giants of the sky. Immediately upon hearing the news that the company would buy a balloon for promotional purposes, thirty employees announced they had formed a ballooning group. Today, at the headquarters in Hasle-Rüegsau near Bern, ten of the company’s employees have a pilot’s licence they can call their own, and a total of seventy are members of the ballooning group. The company owns five balloons, while for his personal trips, Blaser has purchased three slightly smaller balloons. At the company’s American subsidiary, there is already a fleet of three balloons.

Wind – the third dimension Thanks to his aircraft, Blaser has had many extraordinary experiences in other destinations besides Burma. In Russia, for example, shortly after the collapse of Communism, he received permission to launch from Red Square, from where the wind immediately blew him right over the Kremlin. At that time, just after the end of the Cold War, the Kremlin was a complex with huge symbolic importance – a fortress that people from the West were not allowed to get too close to. Around the same time, in Tallinn, inaccurate wind data forced him to land in the middle of a military base. The balloon floated down over a squadron of jet fighters, just a hand’s breadth above their canopies. Only one year earlier, the consequences of a mishap like this would have threatened to land Blaser in prison. But now the mechanics and other personnel were actually happy to meet this unusual flying visitor and helped him with the clearing up.

As these two experiences demonstrate, the wind – the third dimension in ballooning – is a component that is very difficult to predict. The right amount to have is always “a little, but not too little.” Ballooning is a very weather-dependent sport. Accordingly, every balloonist has to observe the weather very closely. “Today I look at the sky and the weather with different eyes than before,” says Blaser, “and I love to play with the wind when I’m in the balloon.” To become a balloonist, the training period takes at least a year. The reason is that trainee pilots must gain experience in all seasons. Only in the winter is it possible to launch at any time of day. In the other seasons, it is necessary to avoid dangerous thermals with their non-vertical, swirling winds. Ballooning is therefore only possible for about three hours after sunrise and two hours before sunset.

Depending on the balloon’s position, winds make a big difference. This can especially be seen in competitions when dozens of balloons all head for the same destination – but not all have chosen to get there by the same route.

In this case, pre-defined targets have to be reached within a given time, or a river needs to be followed very precisely.

Previously, objects were often thrown overboard at the marked coordinates, but today a lot is based on GPS. Former Swiss Champion and European Number Two, Blaser says he hasn’t taken part in the sport competitively for ten

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People often find that they have become balloon enthusiasts quite suddenly – without needing much time to warm up to them. In the case of Peter Blaser, enthusiasm came late, but when it did, it struck with lightning speed.

What feelings does it awaken in him today, when, from the ground, he spies a balloon high up in the sky? “I ask myself why I’m not up there,” he says with a grin.

“Luckily for me, though, the situation is usually exactly the reverse.”

Peter Blaser, 66, is Chairman of the Board of the company Blaser Swisslube. The native Emmentaler entered the family-owned business in 1973 and headed its operations until 2010. Under him, the company – which today counts 500 employees – came to focus on its current core area of coolants and lubricants and is internationally active. Blaser has been excited about ballooning for 22 years. He was the Swiss Champion and attained the Number Two ranking on the European level. He has already traveled by balloon in 40 countries.

Photo: Emanuel Ammon, aura

Besides this aspect of the sport, it is also important to organize the transportation of the balloons, and this is always a special experience as well. Sometimes the balloon lands on a sandbar or on boats in a lake. It’s truly great to see all the different ways it’s possible to organize a suitable means of transport in Burma he says – from boats to oxcarts. They have never had anything stolen there, he adds, emphasising the positive emotions he links with the country.

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The balloon in silhouette and one of the two thousand sacral structures maintained in Bagan, Burma.

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Photo: Emanuel Ammon, aura Photo: Emanuel Ammon, aura

Traveling by balloon opens up fantastic perspectives over the beautiful lakes and landscapes of Burma ...

... and it’s a good vehicle for getting in touch with people.

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Theme

For many years Olivier Bernhard had a reputation as an exceptional athlete in duathlon and triathlon events. Now he has also made his mark in the world of business by developing the revolutionary “On” running shoe, which is taking the world by storm. His recipe for success? Communicate the joy.

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By Renato Richterich

Theme: A high-flyer with stamina

Sure-footed on the road to success What does a triathlete think about during the many hours of a competition? Olivier Bernhard answers the question with a smile. He is never bored during an event.

On the contrary, keeping mentally active is vital. And, of course, there’s the sheer pleasure of being out in the natural world. This pleasure and a passion for running are the basis of Olivier Bernhard’s career as a triathlete and duathlete. For many years he was the outstanding talent in these events, winning the Ironman Switzerland title five times, becoming world champion in the long distance duathlon three times and winning the Zofingen Powerman title three times.

Olivier Bernhard’s passion for running is also the basis for his second career. Since he retired from elite sport in 2005, he has coached other athletes – and businesses. Since 2010 the development and distribution of his new running shoe, the “On”, has become more and more important.

“My move into business didn’t happen suddenly. It was planned long in advance,” explains Olivier. “In 2001, when our first child was born, it became clear that elite sport and family life weren’t necessarily 100% compatible.

One year later I set up my own company and began to gather experience in coaching athletes.”

His first customer was his wife. During Ironman Hawaii – one of the most prestigious in the event calendar for triathletes – his wife asked him if he thought that she too could compete in a long distance triathlon. Olivier was delighted: “I encouraged her to go for it because she had already taken the first step: she wanted to do it. She had a vision and a goal and the energy to achieve them. Then it was just a matter of building up the passion for the project.”

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Success factor: passion Besides being in peak physical condition, the key factors for outstanding performance in any sport are personalised training and nutritional plans, hard work and endurance.

These could be said to be the basics for any elite athlete.

However, success or failure for athletes also depends on whether they are mentally ready for the task – even after four or five hours when the muscles start to complain. “Keeping the right mental attitude is enormously important, especially in endurance sport,” insists Olivier Bernhard. “The ability in moments of real difficulty to call up positive emotions and really deep passion for the task is absolutely key for personal success in any competition.”

A career almost by accident Child-like joy and creativity: these are not concepts that one naturally associates with the triathlon. Powerman and Ironman triathlons are the martial-sounding names of events in which athletes compete against each other in three disciplines – swimming, cycling and running. During a long distance triathlon the fastest competitors will be on the move for eight hours or more – constantly at their

Olivier Bernhard (43) is a five-time winner of Switzerland’s Ironman Triathlon in Zurich and eight-time winner of the Powerman Zofingen, which has been recognized since 1998 as the official Long Distance Duathlon World Championship. He ended his athletics career in 2005 and has been sharing his knowledge and experience since then with endurance athletes of all fitness levels and ages and with businesses. Since 2010 he has spent most of his time developing and selling the On running shoe which has been a runaway success worldwide. www.olivierbernhard.com, www.on-running.com

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Photo: braschler/fischer/photography

distance events. “They suited me better than the short distance,” says Olivier Bernhard. “In these events mental fitness is just as important as physical fitness.” Successful years, including an impressive win in the Palmarès Ironman event, followed.

In the last few years, Olivier Bernard developed from an athletic high-flyer to a corporate high-flyer.

physical limit. But for Olivier Bernhard the start of his career as an athlete was the joy of running. He first came into contact with the triathlon and later the duathlon in 1989 through athletics. “I knew about running and cycling. For me the big challenge was the swimming,” he explains. Even in his first few events he was surprisingly successful. “It was never a childhood dream of mine to become a professional athlete,” he explains. “But my appetite grew with my initial successes.” He trained more intensively and focused in particular on diet and mental preparation. In 1993 he decided to turn professional and see what he could achieve in elite sport. His success showed that he had made the right decision and rewarded the risk that he had taken. In his first long distance Powerman competition at the Zofingen duathlon he emerged as the winner. The key factor was the switch to the long

Wearing the running shoe On, you have

Like running on air The joy that Olivier experiences when running has remained strong, and communicating this is at the heart of his current work. With On AG, his own company, he is developing and selling a revolutionary new running shoe. “An ambitious undertaking, as people kept telling me. After all the market has been dominated by a handful of big names for decades now,” explains Olivier.

Together with a Zurich-based engineer he developed the prototype in order to help him recover from injury. “But we didn’t let ourselves get discouraged and now we’re a success.” The special thing about the On running shoe is its new sole technology which absorbs both vertical and horizontal forces. This cushions the foot against the many impacts that it suffers during running and is particularly good for hobby runners. When the system is compressed it becomes very direct and gives the runner additional impetus. Until now training shoes have been soft and heavy whereas competition shoes have been hard and light. We have created the first running shoe that combines these two worlds. The result is simple: “Running is a lot more fun again – regardless of how fit you are,” explains a delighted Olivier Bernhard.

The shoe’s success speaks for itself. The first pair was sold in July 2010. In the meantime On products can be bought worldwide in 400 specialist stores in 20 markets, including not only Switzerland, Germany, Sweden and Finland but also the USA, Australia, the Philippines and Singapore.

On’s sales figures are rising rapidly. In 2010 the founders of the On brand won the Innovation Prize at the ISPO sports fair in Munich. “That really raised our profile,” says Olivier Bernhard. In 2011 a study carried out by the ETH in Zurich showed that runners had lower heart rate and blood lactate levels when using On shoes than when they used their favourite shoes.

The On shoe enables the runner to run more efficiently and therefore more quickly. The On has been a big hit with ambitious amateur and elite athletes. Now it’s a matter of raising interest in the shoes among entry-level runners. And the On has another trump up its sleeve: the shoe triggers emotions and fascination thanks to its revolutionary sole and its design. This is clear from its fan community on Facebook which raves about the new feeling that the shoe gives them when running.

There is every possibility that Olivier Bernhard’s second career will be just as outstanding as his first – with shoes that make you feel like you’re running on air.

the feeling you’re running on a cloud.

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Theme

How does one become a high-flyer? For several years, Ulrike Stedtnitz has been occupied with the issue of giftedness and superior ability. She knows which paths lead down blind alleys, and which bring a person’s full potential to light.

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By Johann Thalheimer

Theme: High-flyers and giftedness

Skills count, not IQ Isn’t it odd? Here we are, the inhabitants of the 21st century, with access to a vast range of scientific knowledge – more than any generation in history – and yet in so many areas, we still allow ourselves to be influenced by prejudices and make-believe certainties. Among the remarkable fallacies still haunting the minds of many people today is the notion that someone with an IQ of 130 or more is a highly gifted human being.

Such a statement is at once problematical on two levels.

First, it treats giftedness solely as a function of intelligence.

And second, it is a very static approach: Any measurement of intelligence can only ever be a snapshot, which will still bear the stamp of significant methodological randomness.

Current research is cognizant of the dubious nature of the label “gifted” and therefore prefers to use language that focuses more on developing a person’s potential.

And when referring to particularly capable people, “high performers” is the preferred formulation.

Close to the subject for 30 years Ulrike Stedtnitz also emphasises nuanced terminology and avoids assigning labels to people prematurely. Together with a team of eight specialists, she heads up a consulting company in Zurich for developing potential. She discovered this area more than 30 years ago, when she was a young primary school teacher. She had recently earned her degree, but even with a diploma in her pocket, there were no jobs to be found – a glut of teachers reigned in Switzerland at that time. So the young teacher decided to deepen her education by studying behavioural sciences and pedagogical psychology in the United States.

In the USA, Dr. Stedtnitz’ eyes were opened to the issue of developing people’s potential: “I read an article about American adolescents, who, thanks to their abilities, were already allowed into college at the age of 10 instead of 16 or 17,” she recalls. That was her first contact with the subject, and it immediately enthralled her. She also realised how different the reactions to these situations can be. “In

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the USA,” notes the psychologist, “people equally admire top performance and top performers, whilst in Germany and Switzerland, we only really appreciate the top performance, but not the top performer.”

Adult high performers are usually able to cope with this, but children often cannot. This is one of the reasons why Dr. Stedtnitz avoids the label “gifted child” wherever possible. “Except perhaps in sports, high-performing children have a problem in many countries – they are envied and excluded.” Interestingly enough, studies show that children who have been labeled as “gifted” perform less well than gifted children who are able to grow up without this burdensome label. The reason: the “gifted” are often passive because they imagine themselves as already having reached the goal, while the others remain curious, creative and motivated.

What it all comes down to “Talent, giftedness and intelligence are not static,” insists Dr. Stedtnitz from long experience as a professional coach and consultant. Neuroscience, as well as research on cognition, expertise and intelligence, shows that talent or intelligence is not in itself sufficient for success in life.

Dr. Ulrike Stedtnitz originally hails from northern Germany, but spent part of her youth in Switzerland. After training as a primary school teacher, she went to the USA and studied behavioural science in Los Angeles and pedagogical psychology in Connecticut, where she earned her PhD. Back in Switzerland, she founded the first counseling centre for the gifted. Today, as the Managing Director of “stedtnitz.design your life,” she advises adults, adolescents and children together with a team of eight specialists, conducts comprehensive analyses of her clients’ potential, and develops for them individual Life Design Concepts. In her book “Mythos Begabung” (Verlag Hans Huber, Berne), she describes the path from potential to success. www.stedtnitz.ch

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Photo: Sandro Diener

Experienced in the promotion of gifted individuals: Ulrike Stedtnitz and her team have analysed the potential of more than 8,000 individuals.

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Thus, for example, Henry Mintzberg of McGill University in Montreal looked at the 19 top graduates from Harvard Business School in a particular year and found that only five had succeeded in their professional life. Four of them had mediocre careers, and ten were complete failures.

more,” “Go to your limits,” she heard constantly from her professors, taking this as genuine interest on the part of teachers in their students – a level of interest she had never previously experienced in Europe.

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Recent research has rebutted and seen off the stage the old static concepts of giftedness, which were based all too much on intelligence and talent. Ulrike Stedtnitz’ thinking is completely in line with current research when she says that an Intelligence Quotient of 115 is entirely sufficient for top performance, be it in school or on the job. These findings have been very liberating for both children and parents, because suddenly, many more people see that they have the potential to become high performers. From the standpoint of educational policy, however, the findings are explosive, because they indicate that universities, polytechnics and colleges should be accessible to a larger group.

Ulrike Stedtnitz is not really surprised by these findings and those of similar studies. “Intelligence and talent are often overvalued,” she says, “while skills are undervalued.” In this sense, talent and intelligence are good starting points, but not much more. Much more crucial is the acquisition of skills. Skills are capabilities. And skills do not simply fall from heaven onto a few lucky people, fully developed in

Except perhaps in sports, high-performing children have a problem in many countries – they are envied and excluded.

Photo: Getty Images

Photo: Interfoto

the form of giftedness or talent. People have to acquire skills through learning and practice, through experience and mistakes. Along this long path, the encouragement of parents, teachers or bosses is important. During her years of study in America, Dr. Stedtnitz experienced this encouragement as a profound empowerment. “Try to do

Photo: Deutsche Bundespost

In her work, Dr. Stedtnitz time and again encounters people with a high skill level, who are not managing to achieve a corresponding level of performance. In such cases, it is necessary to find out what it is that is inhibiting their performance. In one case, it may be due to a learning or attention disorder, whilst in another, it may be an emotional imbalance or deficiencies in social skills that are holding the person back.

Albert Einstein

Winston Churchill

Stood out as a low-achieving pupil; later became a world-renowned

Hated school; later successfully led Britain through the Second

physicist, the founder of the theory of relativity and winner of the

World War with his determination and uncompromising will to win.

Nobel Prize.

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Find out what fascinates you When it comes to consultations and analyzing a person’s potential, Dr. Stedtnitz and her team follow a principal objective: Afterward, their clients – whether young or old – should know themselves better and be able to evaluate themselves better. Or in the words of Ulrike Stedtnitz: “Figure out what matters to you, what fascinates you and where your strengths and interests lie. And then make the best of them and don’t let yourself be discouraged by setbacks.”

The interests model American scientist John L. Holland has developed an interests model, which is convincing as a system and is used, among other applications, in giving career advice. With the help of six basic orientations, it allows interests, jobs and activities to be classified. Holland categorises interests as practical/technical, intellectual/research-based, artistic/linguistic, social, entrepreneurial, and conventional. Among these six interests, everyone usually has one to three preferences. These interests remain constant during one’s entire life, but depending on the stage of one’s life, they channel themselves into different skills.

The high-performance model

Photo: Deutsche Bundespost

Photo: Time Magazine

Based on biographical and empirical data from numerous performers, Prof. Joe Renzulli at the University of Connecticut developed a definition of high performance. According to him, high performance is creative productivity resulting from the interaction of above-average abilities, creativity and commitment. Above-average abilities may be general or subject-specific skills. To Renzulli, creativity exists when someone stands out through curiosity, imagination, flexibility and originality of thought.

He defines commitment as a high degree of interest, enthusiasm and fascination for a very specific subject area.

Bertolt Brecht Distraught, suffered at school; as an author and playwright, he was among the greatest figures in 20th century German literature.

Henry Kissinger A mediocre performer in school; later became a negotiator in many delicate international missions and one of the most important Secretaries of State of the United States.

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Photo: Getty Images

In a period of political and economic uncertainty, many investors feel uncertain. What is important now is to define your own risk capacity and risk tolerance and, if necessary, adjust your risk profile.

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Macro

By Christophe Grünig, Head Wealth Management of the Vontobel Group

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Macro:

New reality in investment Union is unable to come up with an agreed strategy. Contradictory statements and national interests dominate the political agenda. The obvious lack of a workable broadlybased consensus does not bode well. The cohesion of the EU itself seems more fragile than ever, while its much vaunted unity and solidarity has degenerated into mere lip service. The only sure prediction seems to be that the political status quo in Europe is unlikely to remain unchanged for long.

Following the first ever downgrading of the USA’s credit rating from AAA to AA+ by US rating agency S&P, an event that sent shock waves round the world, the financial and capital markets have been gripped by anxious volatility. The as yet unresolved debt problems that currently afflict most of the so-called mature economies have now been compounded, against all expectations, by markedly weaker global economic growth. This cocktail of political and economic imponderables has unnerved the entire investment community. What exactly are the root causes of the global malaise on the financial and currency markets? How should investors approach the current situation? And what conclusions can be drawn in the wake of the financial crisis, the debt crisis and the Euro crisis?

Japan: another lost decade The situation in Japan is little better. Hopes are high that new Prime Minister Yoshohiko Noda – incidentally the sixth Prime Minister in five years – will finally lead his country out of the deflationary gridlock of the past 25 years. Japan is not only facing economic challenges and a menacing debt burden, it is also reeling from the effects of the latest environmental disaster in Fukushima. Moreover, Japan is a prime example of the impact that an only partially resolved (real estate) crisis can have on citizens and investors. Although interest rates are hovering around zero percent, the Nikkei index remains stubbornly below the high-water marks of the 80s. Even assuming an optimistic growth scenario, it looks likely that the Japanese stock market will take a few years to return to its golden days.

Investors who once put their money into Japanese shares are unlikely to see a return on them in their lifetime.

The bad news just keeps getting worse. The USA is teetering on the brink of recession, and the range of fiscal and monetary levers that politicians and central bankers can now pull has narrowed considerably. The USA has shown itself uncharacteristically hesitant in coming to grips with its structural problems. President Obama’s plan to raise the medium-term debt ceiling has left observers unconvinced.

Europe in its turn has fallen back on the pious hope that things must get better, an approach that has done little for confidence, and seems to be in disarray. The European

The development of the Nikkei Index over the past four decades Source: Vontobel Datastream 40 35 30 25 20 15 10 5 0 71

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Political and economic realignment The political upheaval in the Middle East and North Africa caused by the “Arab Spring” has led to a power shift that was regarded as impossible just a few months ago.

Although this broadly-based move towards democracy is doubtless welcome, these “new” countries require the open-handed financial and political support of the United Nations if they are to become properly established. But this urgently required support must be provided primarily by countries like the USA, Germany and France – countries which themselves face major fiscal challenges. However, some flashes of silver can be discerned on the horizon.

In contrast to the weak growth figures coming from the industrialised nations and the consequent downgrading of expected earnings by numerous companies, many Asian and Latin American economies are still generat-

The SNB flexes its muscles From Switzerland’s point of view, the flight of investors into the Swiss franc is of particular relevance. In recent months, the Swiss franc has appreciated significantly against most currencies, a development that prompted the Swiss National Bank (SNB) to take an unusually courageous step on 6th September 2011. Not only did the Bank announce a minimum exchange rate of CHF 1.20 to the Euro, it also went on to state that it would use all available means to attain this objective. This intervention by the SNB, an extremely drastic intervention even in the historical context, underlines the extraordinary economic and political circumstances, which are being exacerbated by the volatility of the financial and foreign exchange markets.

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Panic is a poor advisor Investors naturally react in different ways to new situations. In many cases unusual events that investors find hard to put into context produce great uncertainty, and this in turn can manifest itself in panicky reactions. For entirely understandable reasons very few investors are able to keep a cool head in situations like these. They panic. What does that mean? In the context of investment decisions we see again and again that in extreme situations investors take flight into (supposedly) safe havens – the so-called “flight to quality”. Paralysis, the inability to take any decisions in an extreme situation, is another well-known investor phenomenon. While investors who “flee to quality” run the risk of switching at the bottom of the market from (underpriced) volatile investments into supposedly safe (overpriced) investments, the “paralysed” investor may find that his losses exceed the defined limit and that he too sees himself forced to take flight. In behavioural economics emotional decisions of this kind are examined with reference to feelings such as happiness, greed, fear and, yes, panic. Most studies come to the conclusion that, where investment is concerned, emotional decisions tend to have negative implications for long-term returns. How can one stop emotional responses, like panic-based behavioural patterns, from taking over? On the one hand, many

Anxious investors are seeking refuge in assets such as US government securities or the Swiss franc. ing above-average growth. The dynamism and spirit of optimism in these markets remains undiminished. While the challenge facing the growth regions consists primarily in keeping inflationary pressures under control, the major issue in the industrialized economies is the struggle against deflationary tendencies. At the economic forefront of the growth countries stands China, now the world’s second largest economy. The hopes of Western economies are therefore in the hands of an autocratic system – a thought that many Westerners find hard to accept for ideological reasons. So it’s no wonder that unsettled investors are currently taking flight into secure investments – like US government securities, the Swiss franc, and gold.

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investors find it useful at an early stage to set appropriate limits which they then stick to when the investment environment becomes tough or hard to understand. On the other hand, it’s better as an investor not to panic in the first place. In other words, one structures one’s portfolio in such a way that one can cope with fluctuations and not be driven to make hasty or irrational decisions. Anyone who

Emotional decisions have negative implications on the returns achieved.

Photo: Sandro Diener

has not yet critically examined his own risk capacity and risk tolerance should certainly do so now. In fact this is one of the major functions of a modern private bank, namely to use a sound advisory process to document the client’s risk profile and then to identify risk-appropriate services, recommendations and products for the client. The analysis of a client’s personal life situation which is carried out in this context not only covers the client’s current financial circumstances, but also addresses other important issues that lie in the future, such as retirement provision and estate planning. Only when the advisory process is carried out circumspectly and with the necessary specialist knowhow and experience is it possible to minimise the likelihood of unpleasant surprises that may unsettle or even panic an investor.

No return without risk After an analysis of this kind some investors will doubtless conclude that they have overestimated their risk capacity and that steps need to be taken to match the portfolio to their actual risk profile. This may mean that exposure to some asset classes has to be reduced. Equities, for example, remain an interesting asset category even though they are subject to major fluctuations, as the last ten years have repeatedly shown. In extreme cases it can take a very long time for losses to be made good (viz. Japan).

Another category is commodities. Everybody’s talking about them, but anyone who believes that they represent an absolutely secure, no-lose investment is mistaken. The same applies to bonds. Against a background of falling interest rates bonds have regularly generated attractive returns over past years. So, should investors simply stick to bonds and forget all the other options? This is inadvisable because with interest rates in many reference currencies approaching zero and negative interest rates in real terms, the prospects of succeeding with bonds alone – in all but the emerging markets – currently look modest. In a volatile environment investors can really only react in two ways.

Either they can reduce their risk and therefore also the potential return, or they have to accept fluctuations in the value of their portfolio. Of course it’s clear that generating positive returns will only be possible in the coming years with a concomitant risk exposure. And that is part of the new reality resulting from the financial crisis, the debt crisis and the Euro crisis.

Christophe Grünig, Head Wealth Management of the Vontobel Group

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Opportunities

We live in an age of rapidly growing megacities. One of the challenges will be to cope with the ever-increasing urbanisation without depleting natural resources. But how can we prevent the gap between supply and demand from growing continuously wider?

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By Pascal Dudle, Portfolio Manager for New Power

Opportunities: Global Trend Investing

Energy efficiency – the painless way to save energy Issues such as population growth and resource scarcity are on everyone’s lips. The United Nations is expecting a world population of 9.3 billion people by 2050, according to the latest revised forecasts of world population development. This represents 150 million more people than in the last estimate made in 2008. At the same time, more people are being attracted to the cities, and in Asia an affluent middle class is being created.

Photo: Getty Images

China aims to “wire” its electric grid In the age of the mega-city, issues concerning environmental protection, logistics and traffic are becoming more and more pressing. China serves as a good example: The country has recognised that it must improve its infrastructure, if it does not want to get bogged down in a metaphorical traffic jam. This will entail the modernisation of the country’s electricity grid. With the advent of solar and wind energy – China is a major player in these areas – the demands on

Expanding the electrical grid will become increasingly important.

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the network infrastructure will increase: a so-called “smart grid” must be designed so that electricity produced from irregularly accessible sources can not only be transmitted to the right place but, increasingly, be stored as well.

According to our estimates, in 2010, the ten largest countries, led by China and the United States, invested more than 17 billion US dollars in technologies related to the smart grid. In Europe alone, we estimate that there is a need for 80 billion US dollars’ worth of investment, while over the next decade, China needs to raise ten billion each year to expand its electricity network, and to get it all “wired up.”

All in all, we see an investment volume of 500 to 600 billion US dollars being made over the coming ten years.

For companies that contribute to the expansion of network infrastructure, we see development potential. These include, for example, manufacturers of special cables, electricity meters and transformers.

LEDs on the way Likewise, when it comes to lighting its cities, the Middle Kingdom says it wants to put more emphasis on LED (light emitting diode) technology. LED lighting fixtures consume only a fraction of the energy that incandescent bulbs require, and the lifetime is about 25 times longer. In addition, in the production of LEDs, in contrast to the production of energy saving lamps, no toxic and environmentally harmful substances such as mercury are needed. We think companies with a strong foothold in this area have a good starting point. However, manufacturers of LED-based products, similar to those of solar panels, have to contend with market fluctuations. A leading electronics company recently issued a profit warning after the company had to record a significant profit decline in its LED lighting unit for the second quarter.

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Photo: Laif

A Chinese worker assembles LED chips. LED lighting fixtures consume less energy than conventional light sources while offering a much longer useful life.

The current price war among manufacturers could jeopardise profits. At the same time, however, consumers might increasingly take advantage of falling prices to jump aboard the LED train.

Fishing valuable materials out of the rubbish Efficiency also includes the possibility of recuperating useable substances from valuable waste. Cities should be able to grow without suffocating in garbage, after all. Recycling and reprocessing are therefore issues that can be of interest to investors as well. Many industrial companies recycle valuable materials, for example recovering gold from old car catalysts and cell phones.

“Smart” electric motors and meters With innovative solutions in the area of building or plant construction, the savings effected can often be astounding. A good example is the variable-speed electric motors that are used, for instance, in pumps. Up to now, pumps were either switched off or were in full swing. Thanks to

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“variable speed drive” technology which allows users to precisely control the performance, they use only as much energy as they need for a task.

In the same category are smart electric meters. These devices transmit consumption data every 15 minutes to the generator, whereas conventional electric meters do this only once a year. Thanks to real-time price information, electricity consumption and production can be more evenly distributed and managed more efficiently.

According to a European Commission Directive*, by the year 2020 around 80% of households should have smart meters. The device manufacturer should profit accordingly.

Angela Merkel spoke on 9th June of “smart metering” as an important component of her country’s plans to improve its energy efficiency. * Directive 2009/72/EC of the European Parliament and the Council of 13 July 2009

30.09.11 07:40

Blue Pages blue 26/27

Blue Pages

News from the Vontobel Group Today’s kids are tomorrow’s stars

In a recent analysis, Bank Vontobel’s award-winning Research team has studied the effects of the current economic situation on Swiss equities. Interested? Then order their study, “Swiss Equities: Scenario Analysis and Ideas” in presentation form, using the reply card at the end of this issue of “blue”. The study is available in German, English or French. Only for Swiss investors.

A young lad whose shorts hang down to his knees, a girl whose socks could double as tights, and a kid carrying a ball under his arm that is almost bigger than he is: All part of a typical scene at the GC Camps, where the Grasshoppers Club Zurich has created an ideal setting to take the children of today and create the stars of tomorrow. As the main sponsor of the GC House of Talents, Bank Vontobel welcomes every young kicker and wishes all the boys and girls good luck for the future.

Opening ceremony for the Frankfurt office At the official opening ceremony for the Private Banking business area, Petra Mennong, Director of the Frankfurt office, welcomed more than 100 guests to the new premises in the WestendDuo, where are all three business areas – Asset Management, Investment Banking and Private Banking – are now under one roof. After Munich, Hamburg and Cologne, Frankfurt has become our fourth Private Banking location in Germany. In his own welcome remarks, Peter Fanconi, Head of Private Banking for the Vontobel Group, described the importance of the German market for Bank Vontobel, and our long-term orientation toward client relations and business development.

Photo: Grasshoppers Club Zurich

First class research from the Vontobel Group

Ciriaco Sforza: One of the most successful Swiss football players of the 90s, now coach of the Grasshoppers Club Zurich.

Photo: Roland Grün

Current monograph from the Vontobel Foundation series

WestendDuo in Frankfurt, the new premises of Vontobel Private Banking.

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Under the title Klimahysterie (“Climate Hysteria”), the latest volume from the series of topical monographs published by the Vontobel Foundation is hot off the press.

In this edition, Joseph H. Reichholf provides a detailed description of the various forces at work producing climate change, and their relationship with each other, providing an especially dispassionate view of the climatic history of our planet. For a free copy: www.vontobel-stiftung.ch.

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Structured products fair on 26th and 27th October 2011

Family-owned businesses in dialogue For the sixth time, the Center for Family Business at the University of St. Gallen and Bank Vontobel are working together to organise the “FiD – Familienunternehmen im Dialog” conference, to be held from 17th to 19th November 2011. FiD offers owners of family businesses and family members the opportunity to glean relevant information first hand, to deepen relationships and develop their networks. Participation is by invitation only. Further information and the conference programme can be found at www.fid.ch.

Sustainable emerging markets equity fund launched ty Fund, With the new Emerging Markets Equi ents its plem Vontobel Asset Management com 2008 since range of sustainable funds, existing e Thes .” bility under the name “Global Responsi ilinab susta h are regionally-focused funds in whic are – ics metr ity issues – in addition to financial g of the investevaluated right from the beginnin

by Stephen ment process. The fund is managed Tong.

Encouraged by the positive response received over the past few years, the Fair for Structured Products is once again taking place this year. Here, you can gain a comprehensive overview of the broad range of structured products on the market, plus detailed background information. An attractive programme promises interesting presentations and roundtables for individual as well as institutional investors. The fair takes place on 26th and 27th October at the Kongresshaus Zurich. Visit us at our stand located at K2 on the first floor.

derinews: Client magazine gets a facelift The August issue of the client magazine “derinews” was the first in which the publication appears with broader scope, more content and a new look and feel. The monthly magazine for structured products at Bank Vontobel is aimed primarily at private investors, though it provides added value for professionals as well. The new notebook concept offers investors new possibilities and ideas regarding investment decisions. Order your free print or online subscription at www.derinet.ch/newsletter. : dneu Bran hr Infos, me ice Noch und Serv mit Inhalt rb beweisen! tt e W re Top-P

Das Monatsmagazin für strukturierte Produkte der Bank Vontobel

August 2011 – Ausgabe Schweiz

China Railway – China stellt die Weichen für die Zukunft Marktfokus, Seite 6

Zahlen sich QuantoProdukte im aktuellen Umfeld aus?

Know-How, Seite 12

Am steigenden Strompreis partizipieren Investmentidee, Seite 14

Portfolio Manager receives Citywire recognition Sreejith Banerji, the Portfolio Manager of a Vontobel Asset Management Future Resources Fund, has received an AAA rating from Citywire in various European countries. This has helped the fund immediately jump into the best rating class. Sreejith Banerji is one of 15 fund managers who were evaluated by Citywire for the first time in June 2011.

Citywire, an independent UK financial information service, recognises each month the fund managers whose funds have posted the best risk-adjusted performance over the previous three years.

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Care & Share

By Renata Fäh

blue 28/29

Care & Share: Helping to shape a community

Taking time for the beautiful things

Hans Gremli, do you play music yourself?

Yes. I played a lot in my youth – I played clarinet in both a symphony orchestra and a jazz band. After a long break, and with a lot of courage, I’m taking it up again, this time in a clarinet quartet. For me, music is a part of life. It has always given me a lot.

committing themselves for a whole lifetime. With our foundation, I hope that we can bring many such projects to life – and by doing so, we can provide the participants with pleasure and the chance to perform.

Photo: Sandro Diener

Hans Gremli is an architect, a former Municipal Counsel for Zollikon near Zurich and Chairman of the Foundation for the Advancement of Music in Zollikon. For him, music is an important part of life. That’s why he is committed to music education and promoting children.

What drives you to make this commitment to music in Zollikon?

Since my time on the Zollikon Municipal Council, I’ve always been involved in some form for the common good. For example, for a period of ten years, I was the president of the local cultural circle. Together with a number of volunteers, we organised the Zollikon Jazz Festival. It has always been fun for me to help shape the cultural life of a community.

Your foundation provides support for the musical education of children and adolescents. How important is this support?

The musical education of a child brings a lot more than people commonly attribute to it. The child also learns how to concentrate, how to work in a team, how to overcome the apprehension of performing for others, and how to take time for beautiful things. It has also been shown that children who play music are often higher achievers in school, because they have received support in a more balanced way.

Since it was established in 1993, Hans Gremli has served as the Vice President of the Board of the Foundation for the Advancement of Music in Zollikon, and since 1st June 2010 as its Chairman.

It’s not only the young, but also the whole town that benefits from your foundation.

That’s right. On the one hand, we are ready to support talented students, whether it’s by contributing fees for lessons or to help pay for an instrument. On the other hand, we make certain projects possible that always culminate in a public concert, thus making a contribution to the life of the town itself. This year’s concert, featuring a mixed choir and orchestra, was a collaboration of different generations extending far beyond the music school.

What is your wish for the future of the foundation?

For a long time, I’ve been observing that the structures of leisure are changing: organised associations are being replaced by one-off projects or events, which are often initiated and run by individuals. People today prefer to get involved in projects that are limited in time, rather than

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Foundation for the Advancement of Music in Zollikon The Foundation for the Advancement of Music in Zollikon, near Zurich, was set up in 1993 by the renowned pianist Margrit Weber. At that time, its focus was on ensuring the high quality of the Music School in Zollikon despite the financial cap put on the contribution that could be made from the community coffers. Today, the foundation supports projects outside the curriculum, but which are very important towards the development of youth and their experience of music. The main purpose of the Foundation is to preserve a vibrant, high-quality Music School.

Contact: hg@gremli-bauberatung.ch Donations: ZKB 8010 Zürich, PC 80-151-4, zu Gunsten 1110-1464.824

30.09.11 07:40

Column: Dr. phil. Manuel Bachmann

The high-flyer is a message suggests that the high-flyer also exists within us. Obviously, this is the part of the message that contains a redeeming power, and it is only because of this that we get excited about high-flyers, admire and glorify them.

Dr. phil. Manuel Bachmann is a Lecturer and the Head of Studies of the Executive Master’s Programme “Philosophy and Management” at the University of Lucerne, as well as an Instructor at the University of St. Gall. He publishes a monthly e-magazine for decision-makers called “absolutum”.

Who does not dream of leaving everyone behind one day, lapping them, flying high above them? Whether this dream comes true for us or not, we do believe that the “high-flyer” exists, in the form of the exceptional talent, the genius, the victor type. Only this person holds our interest. Roger Federer once said: “There is the number one, and the rest.” The high-flyer is the exception, the best, the number one.

There is always a number one: incarnate, real. However, the distinction between the number one and the “rest” creates a significance that goes beyond reality. In this regard, the high-flyer is a myth – a myth based on the idea of a supernatural reality high above the “rest,” a realm of gods and heroes which nonetheless can be attained by a mere mortal – even if it is only one single one.

Why is this myth needed? Because it motivates us. And if we fail, we need it all the more so. The myth of the high flyer is always a mix between the eternal victor and the heavenly redeemer. Whoever flies above everyone else can never lose, can never be trumped by anyone, never be put in the shade or forgotten. So the sure winner is the one part of the mythical message. But this message only becomes truly mythical by allowing us to share this victory in a mysterious way – i.e. it is through this immortal victor that we ourselves are redeemed. In that sense, the myth

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The myth of the high-flyer is retold again and again: in science, sports, management, the arts – we need only think of Einstein, Messi, Welch or Goethe. Even pop culture has its “bests,” people such as Paul Coelho or the Beatles. The suggestion is often made that there is a peak when it comes to absolute exceptions. This fascinates us, this incredible difference between the high-flyers and the “rest”.

Actually, the suggested difference is not visible to us directly, but only by means of things – objects that the philosopher Roland Barthes called “mythical objects”: Einstein’s brain, Messi’s dwarfism, Welch’s yellow tie, or Goethe’s autograph. They “prove” to us that, here, high-flyers have existed in the flesh. Otherwise Einstein’s brain would not still be studied today, or Goethe’s autograph would not command such a huge sum at auction.

It is precisely the fact that the message implied by highflyers is so suggestive, that there is a risk inherent in it, namely to innocently consume the myth. One must acknowledge that one is dealing with a myth.

One recognises the myth by understanding that there are no high-flyers who don’t have a tendentious history. This history casts doubts aside and brings clarity insofar as we are dealing here with peerless people – people whose success is not due to chance and who embody a higher order of nature. Such clarity, such a lack of chance, such higher orders of nature exist only in a mythical world. The myth transforms life’s flukes – the ones that make the difference between victory or defeat, between being number one or one of the “rest” – into a message that we not only would like to believe but are also able to believe. Namely, it tells us that the high-flyer is not a god but is also one of us. And, like any myth, this one, too, is neither simply true nor simply false – but it is powerful. And that is good.

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Culture and cuisine blue 30/31

Culture and cuisine: October 2011 to January 2012

Inside Zurich For young and old

“Blickfang 2011”: International Design Exhibition for Furniture, Fashion and Jewellery Kongresshaus Zurich, Gotthardstrasse 5, 8002 Zurich 25th to 27th November 2011, www.blickfang.com “Blickfang” means “attention getter” but at the 2011 edition of this international design fair, “eye candy” would be a better translation. Here, the latest innovations in the fields of furniture, jewelry and fashion from the scene’s young talents will be on show. Visitors can try products out, purchase them and meet their designer in person.

Urania Observatory Uraniastrasse 9, 8001 Zurich Telephone +41 (0)43 317 16 40, www.urania-sternwarte.ch The Urania Observatory not only offers a fantastic view over the city of Zurich itself, but also provides anyone interested in astronomy with a window onto the entire universe.

Its twelve-ton telescope has a magnification power of 600 times, revealing to visitors fascinating details on the surface of the moon, as well as faraway stars and galaxies.

Museum The Nahmad Collection Kunsthaus Zurich, Heimplatz 1, 8001 Zurich, 21st October 2011 to 15th January 2012, www.kunsthaus.ch Exclusively and for the first time, hundreds of unique masterpieces from the Nahmad private collection will be brought together at the Kunsthaus Zurich. Featuring a brilliant collection of works from all his creative phases, Pablo Picasso is one of the main artists exhibited. Monet, Matisse, Modigliani and Kandinsky are also represented, each with a fascinating range of important works.

Restaurant Restaurant Camino Freischützgasse 4, 8004 Zurich Telephone +41 (0)44 240 21 21, www.restaurant-camino.ch Hosts Claire Kuhn and Sarah Hartmann receive their guests in a small oasis in the middle of Zurich, promising enjoyment, relaxation and a cosy atmosphere. In the kitchen, chef Lukas Strejcek stresses authenticity; with his 13 points from “Gault Millau,” he guarantees food that’s fresh, “simple” and good.

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Events NZZ Podium Special NZZ Foyer, Falkenstrasse 11, 8008 Zurich Wednesday, 23rd November 2011, 6:30 p.m.

Tickets: Two weeks before the podium Tel. +41 (0)44 258 17 80, www.nzzpodium.ch Poetry reading by writers Donna Leon and Wolf Hass Partners: Bank Vontobel, Swiss Re. Zurich Six-Day Race Hallenstadion Zurich, Wallisellenstrasse 45, 8050 Zurich 30th November 2011 to 3rd December 2011 www.sixdays-zuerich.ch The legendary cycling event takes place again in 2011, marking its 55th edition. A top-class field of riders is expected again this year. In addition to the professional races such as the Américaine, time trials, eliminations and the pacemaker race, stars such as Tatana, the new Modern Talking and the Tenors I Quattro are on offer as well.

Photo: Pressestelle Sixday-Nights

Photo: Björn Allemann

Fair

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Vontobel Private Banking The magazine for private clients Autumn Edition 2011

Locations Bank Vontobel AG Gotthardstrasse 43, CH-8022 Zurich Telephone +41 (0)58 283 71 11, Telefax +41 (0)58 283 76 50

“I like flying home best.”

Christoph Franz, CEO Deutsche Lufthansa AG

Vontobel Swiss Wealth Advisors AG Tödistrasse 17, CH-8022 Zurich Telephone +41 (0)44 287 81 11, Telefax +41 (0)44 287 81 12 Bank Vontobel AG St. Alban-Anlage 58, CH-4052 Basle Telephone +41 (0)58 283 21 11, Telefax +41 (0)58 283 21 12 Bank Vontobel AG Spitalgasse 40, CH-3011 Berne Telephone +41 (0)58 283 22 11, Telefax +41 (0)58 283 22 12 Bank Vontobel AG Schweizerhofquai 3a, Postfach 2265, CH-6002 Lucerne Telephone +41 (0)41 249 31 11, Telefax +41 (0)41 249 31 50 Banque Vontobel SA Place de l’Université 6, CH-1205 Geneva Telephone +41 (0)22 809 90 90, Telefax +41 (0)22 809 90 91 Bank Vontobel Europe AG, Frankfurt am Main Branch WestendDuo, Bockenheimer Landstrasse 24 D-60323 Frankfurt am Main Telephone +49 (0)69 695 996 300, Telefax +49 (0)69 695 996 390

Vontobel Asia Pacific Ltd. 2301 Jardine House, 1 Connaught Place, Central Hongkong Telephone +852 3655 3990, Telefax +852 3655 3970

Masthead Editor Bank Vontobel AG Marketing Private Banking (M. Rose, R. Fäh) Gotthardstrasse 43, CH-8022 Zurich Telephone +41 (0)58 283 71 11 Contact blue@vontobel.com Printing Climate-neutral printing by Schellenberg Druck AG. Published four times per year in German and English.

Reproduction, in part or in whole, is strictly prohibited without written permission from Bank Vontobel AG. Photographers and illustration Cover front and back: Getty Images; page 15: braschler/ fischer/photography; page 26: Grasshoppers Club Zürich; illustration page 29: Jürgen Willbarth

High-flyer Christoph Franz: Flying – a moment of leisure Peter Blaser: Experiencing the world by balloon Macro: New reality in investment

English version James Wade, Hurst & Freelancers

Bank Vontobel Europe AG, Hamburg Branch Sudanhaus, Grosse Bäckerstrasse 13, D-20095 Hamburg Telephone +49 (0)40 638 587 0, Telefax +49 (0)40 638 587 230 Bank Vontobel Europe AG, Cologne Branch Auf dem Berlich 1, D-50667 Cologne Telephone +49 (0)221 20 30 00, Telefax +49 (0)221 20 30 030 Bank Vontobel Europe AG Alter Hof 5, D-80331 Munich Telephone +49 (0)89 411 890 0, Telefax +49 (0)89 411 890 30 Bank Vontobel Österreich AG Kärntner Strasse 51, A-1010 Vienna Telephone +43 (0)1 513 76 40, Telefax +43 (0)1 513 76 402

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Disclaimer Vontobel Europe SA, Milan Branch Piazza degli Affari, 3, I-20123 Milan Telephone +39 02 6367 3411, Telefax +39 02 6367 3422

This brochure is for information purposes only and does not constitute

Bank Vontobel AG Renata Fäh Gotthardstr. 43 P.O. Box CH-8022 Zurich

Bank Vontobel Österreich AG Rathausplatz 4, A-5020 Salzburg Telephone +43 (0)662 8104 0, Telefax +43 (0)662 8104 7

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an offer of any kind. The services described in this brochure are supplied under the agreement signed with the service recipient. The nature,

Would you also like to read “blue” on your iPad? To download the app, or get more information about it, visit www.vontobel.com/blue or go to the App Store directly.

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scope and prices of services and products may vary from one country to another and are subject to change without notice. Certain services and products are not available worldwide or from all companies of the Vontobel Group. In addition, they may be subject to legal restrictions in certain countries.

30.09.11 07:48

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Safety and Security: Fear is not a policy for a safe life Page 4 Security on the mountain: Robert Bösch, photographer and extreme mountaineer Page 8 Macro: The “safe” investment – wishful thinking or reality? Page 14

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Forecasting in a global enterprise: Peter Brabeck: “I will fight for every drop of water”

Vontobel Private Banking Das Magazin The magazinefür forPrivatkunden private clients Ausgabe Spring Edition Frühling 2011 2010

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