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Vontobel Group
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Swiss made B
The Vontobel Group The Vontobel Group offers the unique combination of an independent Swiss private bank with the innovative strength of an active international asset manager. Our integrated business model with the three business units Private Banking, Investment Banking and Asset Management ensures close cooperation and allows us to successfully pool our expertise and resources for the benefit of our clients and business partners. Each day, around 1,400 Vontobel employees around the world create sustained added value for our clients: they diligently manage and monitor the client assets entrusted to us, while carefully tracking developments in the financial markets and observing global events. Whether they are in the heart of Zurich, in New York, Hong Kong or Dubai – employees in 19 international locations identify trends and devise appropriate innovative investment strategies and products. We focus on areas of business of which we have an expert knowledge and we earn the trust of our clients by delivering on our promises. The stable shareholder structure of the Vontobel Group and the longterm focus and entrepreneurial philosophy of our major shareholders are the key to our solidity and reliability. The Vontobel families hold a majority of around 52% of votes and capital. In addition, Vontobel’s strategic partner, Raiffeisen, holds a stake of 12.5% in the company. The rating agencies Standard & Poor’s and Moody’s have analyzed and rated Bank Vontobel AG and Vontobel Holding AG. The ratings (as of 31.12. 2010) confirm the recognized financial strength and solidity of the Vontobel Group: Standard & Poor’s: Vontobel Holding AG A Bank Vontobel AG
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Legal information The Vontobel Portrait 2011 is intended solely for information purposes. The information and views contained in it do not constitute a request, offer or recommendation to use a service, to buy or sell investment instruments or to conduct other transactions. In addition, there is a risk that forecasts, predictions, projections and results described or implied in future-oriented statements may not prove correct. Information and statements concerning audited financial results and corporate governance should only be taken from the Vontobel Holding AG Annual Report 2010. It is available at www.vontobel.com or can be obtained by post upon request.
Dear reader Swiss made is a promise of quality and performance. It is used in reference to Switzerland’s financial and industrial centres, which are among the most attractive in the world and have, for years, been drawing in high levels of investment and welcoming global companies and skilled professionals. The Swiss financial and banking sectors have overcome the impacts of the financial crisis far more effectively than other international centres and continue to enjoy a very high level of demand for their products and services globally. Against this backdrop, we are convinced that Switzerland will successfully master the challenges resulting from the growing international pressure on leading financial sectors and that it will emerge from this period of change even stronger than before based on its positioning as a centre of excellence for high-quality financial services. Swiss made is a pledge that is founded on core Swiss values such as solidity, trustworthiness, quality and precision. These values form the cornerstones of the Swiss brand. Combined with a willingness to embrace change, they will guarantee the continuation of Switzerland’s success story. These are the beliefs and values that have also long been the hallmarks of Vontobel. Our relationship with our clients is built on a combination of trust and performance. This is one of the reasons why clients select us as their financial partner and why many of these relationships continue from one generation to the next. We want to impress our clients with our services by focusing on value enhancement, risk awareness and innovation. One example is Vontobel Global Change Investing. Based on this approach, we enable sophisticated investors to benefit from sustainable investment opportunities resulting from the process of global change. If we consider our 2010 financial results and view them in the context of the continued challenging operating environment, it is clear that Vontobel has delivered a solid and successful performance. Our substantial net inflow of new money in the amount of CHF 5.5 billion demonstrates the high level of trust that our clients and partners continue to place in Vontobel. The basis for our bank’s future growth thus remains intact. Vontobel has a strong and successful brand – like Switzerland itself. This was confirmed by the most recent brand rankings published by the business magazine “Bilanz”, in which Vontobel achieved fifth place among the Swiss banks. “Its good name, strong traditions and experience, and its commitment to upholding Swiss values are proving successful,” was the explanation for this excellent ranking. The Portrait 2011 examines the theme Swiss made from various perspectives and presents the views of both external and internal specialists on this topic. They all share the belief that the Swiss brand provides a decisive advantage in the international competitive arena – especially for the Swiss financial centre – and represents a special pledge of quality.
Dr. Urs Widmer
Herbert J. Scheidt
Chairman of the Board of Directors
Chief Executive Officer
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University of St. Gallen HSG/Hannes Thalmann
Prof. Dr. Torsten Tomczak __
Professor of Business
Management and Marketing Director of the Center for Customer Insight and the Center for Innovation of the University of St. Gallen
‘‘Swissness’’ – a strong brand Prof. Dr. Torsten Tomczak No other mark of origin evokes such unique and positive associations around the world as the Swiss cross. What is more: the Swiss brand entails significant goodwill that can be used in almost any product category or industry. Products and services that radiate ‘‘Swissness’’ project an image of ‘‘top international quality’’, ‘‘reliability and trust’’ or ‘‘exclusivity and luxury’’. This reputation has been built up over a very long period and can be traced back to the 16 th century. Entrepreneurs such as Abraham-Louis Breguet were the first to establish “The Swiss brand has developed over a the image of Swiss reliability. During the period of industrialization, number of centuries. The contribution that it this image was cultivated by leading figures such as Henri Nestlé, Franmakes to Switzerland’s prosperity is not to çois-Louis Geigy and Hans Caspar Escher. The tradition has been maintained today by typically Swiss companies such as Schindler, be underestimated.” Lindt and Kambly that operate successfully in the international markets. However, it is the watch-making and banking industries that have shaped the image of Swiss business more than any other sectors. To explain the true value of the Swiss brand image, it is necessary to look beyond purely economic aspects: this image has also been formed as a result of the country and its people, as well as by academic and political factors. The magnificence of Switzerland’s mountain landscape, its multicultural population, Roger Federer, the construction of the longest rail tunnel globally, the world’s largest research centre – CERN – in Geneva, the country’s policy of neutrality and the robust state of its economy and public finances are all factors that have significantly influenced the way in which Switzerland is perceived beyond its borders. Switzerland’s brand is a ‘‘meta brand’’ whose positive image has – fortunately – remained very stable, even during the financial crisis. This reflects the fact that ‘‘Swissness’’ is now firmly established as a result of the country’s many recognized strengths and qualities, which have existed for years and provide a strong and sustainable basis with which to meet future challenges. One of Switzerland’s key advantages in the competition between international centres is undoubtedly its globally renowned education system. Together with Switzerland’s reputation for open-mindedness – which enhances its relationship with other countries – its education system and academic and scientific achievements are of decisive importance for its image and prosperity. The Swiss brand has developed over a number of centuries. The contribution that it makes to Switzerland’s prosperity is not to be underestimated. The same applies to investments in the country’s state-of-the-art infrastructure, which projects a positive image of Switzerland to the rest of the world and earns it international respect. The Swiss road and 2
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A Swiss hallmark: Bahnhofstrasse in Zurich
rail network is just one example. The federalist structures within Switzerland’s political system – which is founded on the principle of consensus and a clear commitment to democracy – also underpin Switzerland’s positive image. The Confederation’s political principles and frameworks have always been regarded as exemplary throughout the world. Research has repeatedly shown that Switzerland’s image abroad is much better than is assumed by the Swiss public. This may also be related to the essentially modest tone that Switzerland adopts in its dealings with other countries, thus further strengthening the largely positive image of the country. This generates benefits for the Swiss economy, which reciprocates by delivering high-quality services that reinforce the concept of ‘‘Swissness’’ as part of a mutually beneficial relationship. This positive relationship between ‘‘Swissness’’ and the Swiss economy is based on a healthy combination of major industry (chemicals/pharmaceuticals and the metal and electrical industries), mid-sized sectors such as IT and tourism, and the countless high-performance small and medium-sized enterprises (SMEs) that often remain in the shadow of the global economy but are international leaders in their respective fields and thus also act as excellent, low-key ambassadors of the Swiss brand. This range of different companies also benefits from another strong relationship: the interplay between Switzerland’s financial centre and the ‘‘traditional’’ Swiss centres of industry, knowledge and learning. It is important for these different centres – which are a source of Swiss quality – to work in close conjunction with one another and to not allow themselves to be divided by the comments of envious observers. Any such move would not only send out a negative signal but would probably also meet with disapproval outside Switzerland. The Swiss brand is an asset that has been built up over the centuries by countless brand ambassadors and makes a very important contribution to Switzerland’s prosperity. All those who use the Swiss brand must be aware of the brand’s heritage and perform their roles as brand ambassadors in the characteristic Swiss style – acting reliably and delivering the very highest standards of quality. ‘‘Swissness’’ is a pledge.
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Dr. Urs Widmer, Chairman of the Board of Directors
“Conserving our proven strengths, pursuing new approaches: that is the key to our success� Herbert J. Scheidt, CEO of the Vontobel Group, and Dr. Urs Widmer, Chairman of the Board of Directors, discuss Switzerland’s strengths as a business location, the future of the banking sector and the greatest challenges that lie ahead.
2010 was a year of change: which developments did you consider to be most significant during this period? Dr. Urs Widmer __ The operating environment altered dramatically last year for the Swiss banks and their employees. You simply need to think of events relating to bank client confidentiality or stricter regulatory requirements as examples. As the longstanding Chairman of the Board of Directors of the Vontobel Group, however, the issue I considered most important in 2010 was to create the right basis for the management changes within our bank. I believe that we did so successfully 4
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and I am pleased that we were able to reach all the key decisions on succession issues in good time. Herbert J. Scheidt __ The changes we are making within our bank were clearly defined, very well planned and have received broad support. Both our clients and employees are pleased about the continuity and reliability that the management changes will bring. We have thus created a strong basis for the successful future development of our bank. In terms of the changes in the Swiss financial centre, I believe that two factors are of decisive importance: first, our financial
“Overregulation can hamper growth without being effective and can distort competition.” Herbert J. Scheidt, CEO
Herbert J. Scheidt, CEO
regulator has succeeded in maintaining its leadership role in the development of a regulatory framework that is both appropriate and exemplary by international standards. Second, our politicians are making good progress towards resolving the tough international disputes surrounding bank client confidentiality. While it is certain that not every aspect of the agreements will find favour in Switzerland, we must nevertheless welcome the fact that the conclusion of the new treaties will eliminate uncertainty and provide clarity. The competition within the finance industry is growing increasingly fierce and the pressure on margins is considerable. Are you sometimes
“In the end, it is not just the sheer size of a bank that matters: it is also important for it to be structured in the right way.” Dr. Urs Widmer concerned about the future of small and mediumsized banks? Scheidt __ The private banking market is not only
undergoing changes in Switzerland but also in Germany, our second core market. It is probably inevitable that a number of players – including some smaller banks – will not survive this period of transformation. However, size is far from being the only criterion that counts. What is much more important is for banks to have a close proximity to their clients and a solid capital position, coupled with effective cost management. Excellent advisory services, transparent products and efficient processes are a winning combination to attract clients. This is why I don’t have any worries about the future of our bank. Widmer __ In a highly competitive environment, what also counts is whether a bank has a stable shareholder base and properly functioning control mechanisms. Vontobel is well positioned in this respect. The Vontobel family has reaffirmed its commitment to the bank and has concluded agreements that are valid until 2017 that ensure it will maintain its majority shareholding. At the same time, our accountability towards our minority shareholders as a listed bank provides a level of transparency that is not typical of many private banks. In the end, it is not just the sheer size of a bank that matters: it is also important for it to be structured Vontobel Portrait 2011
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in a way that allows it to deliver solutions that are optimally tailored to client needs. The new financial regulations are a dominant theme at present; they also featured high on the agenda of this year’s World Economic Forum. What needs to change? Widmer __ I believe that we need to adjust our value system. Responsibility and security need to once again be assigned much greater priority. Scheidt __ If you break it down to an operational level, the golden rule is: you should only engage in business activities that you truly understand. And if a client explicitly wants to engage in an unusually speculative transaction? Scheidt __ A bank and its employees must have the courage to say ‘no’ from time to time. A focus on returns and sustainable business practices are not always compatible.
“Excellent advisory services, transparent products and efficient processes are a winning combination to attract clients.” Herbert J. Scheidt Anyone who was previously unaware of this fact will undoubtedly have learned it during the financial crisis. At Vontobel, we only engage in activities that we understand and believe in. And if this principle is not in line with the interests of a client on one occasion, then it is only fair and professional for us to inform the client accordingly. This is the way in which we create trust – and this is our priority at all times, even if it means that we lose out on the transaction in question as a result. It appears that trust in the banking world has still not been fully restored. Viewed from today’s perspective, do you think it will ever be possible to repair the damage that has been done? Scheidt __ Yes, I think this can definitely be achieved through transparency and fairness – we just need to be patient. The entire industry has, for years, been held responsible for the excesses of a few individuals. It will take time to convince people that not all financial institutions are the same. However, I am confident that this will be achieved thanks, for example, to the conservative system of values adopted by Vontobel long before the financial crisis. 6
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Widmer __ Yes, the days of excess are now over. Banks and their employees need to make it clear to the public that they have understood this fact. For example, compensation systems that focus on long-term performance and prevent excesses will help to restore confidence in the financial sector. I would also like to reiterate the point made by Herbert Scheidt earlier: banks must be willing to essentially avoid engaging in high-risk business transactions. This may impact earnings in the short term but will prove beneficial in the long term. Do you think the decisions that have been reached regarding bank regulation will be effective or do you fear that we will see further excesses in the industry? Widmer __ The reforms entail new compensation rules, increased capital requirements and restrictions on leverage ratios for the big banks. These are important measures, all of which represent a step in the right direction. However, I am not under the illusion that rules and regulations alone will prevent excesses: what is also needed is a fundamental rethink within the banking world. Scheidt __ Simply imposing bans and regulations is never a solution. Overregulation can hamper growth without being effective and can distort competition. I remain concerned about the fact that some financial centres are continuing to seek competitive advantages by defining low levels of regulation. However, regulatory arbitrage is not solely a problem between states: at present, we are also seeing that large numbers of former investment bankers are now operating within hedge funds in order to execute their deals. This may eliminate certain excesses at bank level but it does not make the financial markets any more stable. You have referred to the high standards that exist in the area of financial regulation in Switzerland. At the same time, banking confidentiality has been eased – possibly resulting in the loss of international clients to the Middle East or Far East. Do you believe that Switzerland’s competitive position in the financial markets has been substantially weakened? Widmer __ The reality is that operating conditions have become much tougher and we are faced with major challenges. However, this is certainly no reason to go on the defensive or to paint a negative picture of our own financial centre. Thanks to their high level of professionalism, as well as the legal certainty and stable
political system in our country, the Swiss banks continue to inspire a high level of client trust. Scheidt __ The Swiss banking industry still enjoys an excellent reputation internationally. This should not simply be attributed to old-style bank client confidentiality. The Swiss banks have a tradition of providing individual advice and of prudently managing risks. The new agreements governing the provision of legal assistance will not alter the fact that we continue to offer clients the greatest possible level of discretion. And, of course, the ongoing euro crisis has served as a strong reminder for international clients of the advantages offered by Switzerland and its currency in terms of the diversification of assets.
“Vontobel’s growth strategy is traditionally based on a very long-term perspective and is very prudent.” Dr. Urs Widmer The ongoing dispute with Germany has preoccupied Switzerland’s banks and politicians for a long time. Do the new agreements really represent a breakthrough? Widmer __ We are on the right track and I am confident that the talks will be brought to a successful conclusion, even if a few problems still need to be resolved. Important decisions regarding the flat-rate withholding tax still need to be made. What consensus do you expect to be reached? Scheidt __ The flat-rate withholding tax that would be deducted by Switzerland should be set at around 25%, i.e. the rate of tax levied by the German banks. If there
were to be a large discrepancy between the two rates, the Swiss banks would unjustifiably be placed at a disadvantage. What will be more difficult will be to define an appropriate rate of tax for the regularization of legacy assets. I hope that the two sides will manage to agree on an additional rate of tax without it leading to the flight of large volumes of assets to non-European offshore centres. Have the calls for the automatic exchange of information now been fully dismissed? Scheidt __ As already mentioned, the protection of individual privacy in financial matters is one of the main hallmarks of Swiss banking. We assign the utmost importance to safeguarding our clients’ financial privacy now and in the future. I presume that we won’t see any adverse developments in this respect. The level of regulation in Western Europe and the US is high, while growth in areas such as private banking tends to be weak. In this context, it is increasingly important for medium-sized banks to pursue strategies with an international focus. Where does Vontobel’s future potential lie? Widmer __ Vontobel operates in key growth markets, where we are making good progress. At the same time, I think it is important that we don’t neglect our activities in our traditional markets. In fact, we are committed to continuously expanding and strengthening our presence. This objective is, of course, subject to certain restrictions in the emerging markets. Vontobel’s growth strategy is traditionally based on a very long-term perspective and is very prudent. I can only recommend that it continues to pursue this direction. Vontobel Portrait 2011
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Scheidt __ We mustn’t forget that globality is also in evidence in Switzerland. Take Vontobel Swiss Wealth Advisors AG as an example: this newly established company focuses on serving the needs of private clients in the US from our base in Switzerland. A growing number of wealthy Americans are seeking opportunities to invest their declared assets outside their own country in a perfectly legitimate manner. The same principle basically applies in the case of wealthy clients from other parts of the world. These private investors are seeking reliable financial partners with an international track record. What is important to me is to preserve the identity of our bank whenever we are considering growth strategies. After all, it is the Vontobel brand that makes us unique. Which values are embodied by Bank Vontobel? Widmer __ There are three words that encapsulate our values: professionalism, continuity and reliability. This may sound simple enough but it requires a lot
“We are committed to upholding the traditional values and strengths of Swiss banking when operating outside Switzerland.” Herbert J. Scheidt of effort on the part of all our employees at every level of the bank to deliver on these values. An unbridled expansion policy is not compatible with our approach. Can these values be exported to other continents? Widmer __ It is evident that every country and continent 8
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has its own perception of values and its own economic principles. Globally active companies need to recognize this fact without compromising their own identity. Certain core values that form the basis of a company’s internal and external identity have to be observed throughout the company, in all its locations around the world. Scheidt __ No matter how much we endeavour to take account of regional differences, we are, nevertheless, committed to upholding the traditional values and strengths of Swiss banking when operating outside Switzerland. I was born in Germany and became a Swiss citizen last year. I therefore know how important Swiss quality and values are, even in neighbouring countries. The global economy has been achieving strong growth since 2010. How do you expect it to develop in 2011 and over the next decade? How optimistic are you about the outlook for the world economy? Scheidt __ While I am not one of those people who like to paint a bleak picture of the economic situation, I must nevertheless confess that my optimism is muted. This is because I believe we have made little progress so far in reducing the financial and economic imbalances within the world. If you talk to members of the international business community or politicians, their fears about a repeat of the financial crisis are palpable. For example, there is a risk that the high level of sovereign debt in many European countries or the US could lead to new turmoil in the markets. Whether or not this will happen depends, among other things, on how systematically the Europeans tackle their debt crisis. In addition, there is the threat of raw materials growing scarcer and of rising prices, coupled with
climate change and the massive decline in prosperity in many countries. We undoubtedly also need to invest a great deal in risk management on a global level to ensure stable developments in the coming years. Dr. Widmer, you have been a member of the Board of Directors for seven years, including five years as its Chairman. What do you regard as the most significant events during this period?
“I am relieved that Vontobel successfully navigated the crisis.” Dr. Urs Widmer Widmer __ The financial crisis was undoubtedly the most dramatic event during this time. No one had ever anticipated that we would witness financial turmoil on this scale. I am therefore all the more relieved that Vontobel successfully navigated the crisis. Another aspect that is very clear in my mind is, in particular, the considerable support that I received in my role as Chairman of the Board of Directors from employees at all levels of the company during all these years. Mr. Scheidt, you are handing over the post of CEO to Dr. Zeno Staub after almost nine years in order to succeed Dr. Widmer as Chairman of the Board of Directors. Do you believe that Vontobel is well positioned for the future? Scheidt __ Even after the most severe financial crisis in recent times, our bank remains solid and well positioned. Our integrated business model has proved effective. We have built up a strong capital base in recent years and we have a good team. Our share
has performed comparatively well. And specifically because we are so well positioned, I am able to continuously ask myself what we could do even better. This type of self-analysis and openness is something that I also expect from Vontobel’s managers and employees. Mr. Scheidt, won’t you find this change of roles – and your departure from the operational side of the business – difficult? Scheidt __ No, because I can look back on a very long and successful period during which I was responsible for the operational management of Vontobel and was able to directly shape and structure the business. I now very much look forward to assuming a different level of responsibility for the future success of our bank and to approaching it from a different angle. Another reason why I am happy to change roles is because I know that Vontobel will be in the best possible hands when Zeno Staub succeeds me as CEO. I am also looking forward to being able to draw on the many years of experience I have gained as a member of other Boards of Directors and to being able to devote a little more time to these commitments. Dr. Widmer, do you already have plans for your retirement? Widmer __ I will continue to exercise various mandates in other companies through my law firm and I have a number of cultural commitments. These different activities will keep me busy both professionally and personally. At the same time, I hope that I will be able to devote a little more time to my family and my hobbies – especially rowing on Lake Zurich. Vontobel Portrait 2011
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Swiss industry and the drivers of its future success
Hans Hess The industrial sector is of key importance for Switzerland. It generates 20% of its gross national product (GNP), provides employment for more than 700,000 people in our country and creates over CHF 100 billion of added value each year. This is even greater than the economic contribution from the banking sector, which employs 150,000 people and generates CHF 26 billion in added value. Countries in which industry remains a major pillar of the economy such as Germany and Finland – where it accounts for 24% and 25% of gross domestic product (GDP), respectively – fared much better during the crisis of recent years than those nations that have neglected their industrial sector. In France, for example, industry only contributes around 10% of GDP, while the figure stands at 15% for the UK. It is therefore important for Switzerland to nurture its industrial sector in order to ensure that it can perform successfully in the fiercely competitive global marketplace. Which operating conditions are necessary for Swiss industry to remain successful in the future? The first requirement is free access to all global markets – without trade barriers and tariffs. Switzerland is not far from realizing this goal. The current negotiations to conclude free trade agreements with countries such as China and India could represent an important step forward for our country. What is even more critical for the sustained success of Swiss industry is the high quality of its workforce: this determines the quality of the products and the attractiveness of the innovations with which Swiss companies compete in the global markets. A common misconception is that the level of education of the workforce equates to its quality. This is wrong because companies need good specialists at all levels, ranging from workers with professional training to graduates of universities and universities of applied science. In the case of the latter, the Swiss Federal Institutes of Technology (ETH) in Zurich and Lausanne have a decisive role to play, guaranteeing a supply of first-class engineers, physicists, mathematicians and scientists. Without practical people and specialists who can translate innovative ideas into reality and create new products, however, all this theoretical knowledge would be of little use. “Skills and knowledge alone are not enough to Skills and knowledge alone are not enough to secure secure a leadership position in the global battle a leadership position in the global battle for clients. An for clients. Enthusiasm and motivation are also element of teamwork, enthusiasm and motivation is also key factors.” required. After all, industry is all about teams of people working together to achieve things for other people. This is why social skills and an understanding of other cultures are increasingly important. Diversity is a competitive advantage – irrespective of whether it relates to the gender, cultural background or age of the workforce. These differences – and the resulting ability of diverse groups of employees to see a topic from different perspectives – are often a source of new ideas. Innovation is a further factor determining the success of Swiss industry. Our country does not have a wealth of natural resources. We develop and manufacture products while paying relatively high salaries. This is why we have to create products and services that gen10
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Jolanda Flubacher Derungs
Hans Hess __ President of Swissmem (association representing the Swiss engineering, electrical and metal industries and associated technology-oriented sectors) Degree in Engineering from the Swiss Federal Institute of Technology, Zurich (Dipl. Ing. ETH), MBA from the University of Southern California. CEO of Leica Geosystems AG from 1996 to 2005. Member of the Boards of Directors of several industrial companies since 2006, including Burckhardt Compression Holding AG, Comet Holding AG (Chairman of the Board of Directors since 2007), Reichle & De-Massari Holding AG (Chairman of the Board of Directors since 2007), Geberit AG and Schaffner AG.
erate superior client benefits, thus justifying a higher price. This approach is only possible through innovation – not solely in terms of better technologies but also with regard to our better understanding of the challenges facing clients. The world is currently confronted with a number of problems: “A strong industrial sector is dependent on the climate change, CO2 emissions, the scarcity of energy reexistence of a strong financial centre that is willing sources, mobility, urbanization, the supply of food, and to finance innovation and new technologies.” water quality. Innovative solutions are needed to meet all these challenges. There are countless opportunities for industrial companies to make a contribution, create employment and earn money in this context. The good operating conditions available to Swiss industry include their access to favourably priced risk capital. A strong industrial sector is dependent on the existence of a strong financial centre that is willing to finance innovation and new technologies, whether it is in the form of venture capital for start-up companies or equity capital for established firms. Innovation entails an element of risk. The availability of favourably priced operating loans is also important. High costs are forcing Swiss industry to work more efficiently – often by increasing its level of automation. Companies must be able to borrow money at attractive terms to finance the purchase of expensive machines and equipment. Provided these criteria – open markets, innovation, an adequate supply of favourably priced risk capital and a high-quality workforce in terms of knowledge, skills and diversity – are met, the future looks bright for Swiss industry.
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“For me, Swiss made and Vontobel mean...”
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“...applying our Swiss values to ensure the successful development of our business in the future. Reliability, precision and security are qualities that inspire client trust.” Daniel Meier __ Relationship Manager,
“...offering clients an innovative and highly flexible electronic issuing platform, deritrade®, which enables them to rapidly create their own customized products.” Salama Belghali __ Engineering & Develop-
Private Banking
ment Financial Products, Investment Banking
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“...especially reliability. We are the partner of our clients who entrust their capital to us. We stand for investment processes that one can built on – robust, repeatable and focused on superior performance over time.” Steve Triantafilidis __ Head of Global Equities,
“...combining traditional values such as continuity or stability with state-of-the-art, innovative approaches to create bold, enterprising and sustainable IT solutions.” Roger Erdt __ Head of Content Systems,
Asset Management
Operations
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Marco SavarĂŠ and Dr. Claudia Sieber Peyer, Investment and Tax Advisory, Private Banking, in a discussion with clients
Private Banking – offering even more individual advice to discerning clients Vontobel Private Banking incorporates the latest findings from the area of behavioural finance research into its advisory process, thus enabling it to serve the needs of clients in an even more targeted and individual manner.
Each investment advisory discussion with discerning private clients focuses on their wishes and expectations. The aim is to generate added value for clients relative to their risk exposures and the development of the financial markets. To achieve a sustainable performance while maintaining a prudent approach to risk, it is essential to take a holistic view of the needs, expectations and personal circumstances of each client. This process forms the basis of every well-balanced advisory discussion. Wealthy investors are rightly seeking state-of-the-art private banking services and are placing increasing demands on their financial partner. They require comprehensive advice, service and performance and, in particular, clear and transparent information. 14
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After all, it is only if clients truly understand the investment solution they have selected that they will subsequently be satisfied. The specialists at Vontobel Private Banking are continuously enhancing the quality of the advisory process based on these client needs. The incorporation of the behavioural finance approach is of decisive importance in this context: it helps relationship managers to reach far-sighted investment decisions with their clients irrespective of current developments in the financial markets, which may partly be driven by emotional factors. In line with this approach, insights from behavioural science are applied to the investment decision-making process – making it possible to better forecast the future
Each advisory discussion centres on the needs and expectations of the client
behavioural patterns of market participants, even if they are irrational. “We use behavioural finance to gain an even better understanding of our clients and to further improve the advisory process so that we can offer them specially tailored solutions”, explains Dr. Daniel Kuehne, Head of Product Management at Vontobel Private Banking. According to the product specialist, the aim is not only to obtain an increased insight into the clients’ financial needs but to also work closely with them to further enhance their own investment behaviour in order to realize or exceed their jointly defined investment goals.
targeted investments in the expansion of its advisory software and the corresponding systems in order to support its relationship managers with state-of-the-art applications. “We believe that this approach enables us to create significant added value for our clients in a transparent manner, states Dr. Daniel Kuehne. This reflects the fact that the bank is, on the one hand, large enough to provide the desired breadth and depth of services through its own specialists, while being small and dynamic enough to respond rapidly and flexibly to individual client needs.”
“We use behavioural finance to gain a better understanding of our clients and to further improve the advisory process, thus enabling us to offer them specially tailored solutions.” Dr. Daniel Kuehne __ Head of Product Management, Private Banking In addition, Private Banking now draws on the investment expertise available within Vontobel even more directly and intensively when serving clients. One example is its extended offering in the area of Global Change Investing. In addition, Vontobel is making
Private Banking addresses the needs of wealthy private clients. We offer them service and advice based on a holistic and customized approach. Every aspect of our offering is designed to ensure a firstclass performance with a focus on independent advice, individual service and transparent processes.
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“Switzerland must act globally to preserve its national identity”
Dr. Zeno Staub From a young age, we constantly compare ourselves with our peers and use our neighbours as a benchmark. What is true of people is also true of countries: Switzerland compares itself with the European states that surround it. We examine their government expenditure rates, economic competitiveness and attractiveness as a location, as well as assessing the quality of their education system, tax system and public infrastructure. If we look at the surrounding European landscape – which is dominated by Italy, France and Germany – we see that Switzerland is well positioned. However, this is precisely where our problems lie. First, the Swiss have a tendency towards complacency. If we perform well or very well in comparisons such as the studies published by the OECD, IMD or World Bank, it is not long until we hear the shallow argument: “We may not be doing as well as we used to but we are still performing “Complacency and peer pressure are two very real threats to Switzerland. An open-minded and much better than the others.” Comforted by this notion, we then make dubious regulatory policy decisions – be it internationally-oriented population is key.” with regard to the assessment of internal tax competition or the structuring of our welfare system. The second and more serious problem is the reverse of the first. In Switzerland, we like to rank better than other countries in peer group comparisons but have a fear of significantly outperforming them in case this attracts unwanted attention. This desire to remain inconspicuous grows all the more pronounced, the more unified and homogenous the rest 16
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Dr. Zeno Staub__ Head of Vontobel Asset Management; new CEO of the Vontobel Group from 4 May 2011.
of the peer group becomes. In this context, traits that are characteristic of our country such as our direct democracy or the significant legal rights accorded to Swiss citizens, as well as tax competition or the concept of individual responsibility, are suddenly transformed from strengths into dangerous distinctions. This can lead to Switzerland being marginalized due to the inevitable group responses – ranging from ‘‘naming and shaming’’ or exclusion to demands for our country to conform in order to once again be accepted within the circle of nations. Complacency and peer pressure are two very real threats to Switzerland. In both cases, however, one key fact has been overlooked: Switzerland’s economic strength – and consequently our standard of living – is not the result of us doing the same as our neighbours, only better. Instead, it is driven by the fact that we are different and it reflects our ability to compete successfully in the global arena. These are the factors that are relevant in any such comparisons. We cannot and should not use the average performance of neighbouring countries as our benchmark. Instead, we must measure ourselves against the world’s most successful and dynamic business centres. I am referring here to selected cities and states in Asia and other emerging markets and “It is only by keeping pace with the world’s to the flourishing towns and regions of Northern Italy leading nations that we will be able to maintain and Southwest Germany, as well as to London and New our standard of living.” York – depending on the industry concerned. For example, the airport express in Hong Kong or Tokyo makes the Swiss rail system appear outdated, although it undoubtedly compares well with the regional rail service in Italy. And it is the level of corporation tax levied in Hong Kong or Singapore that should give us food for thought – not the corporate tax rates in Milan or Paris. Switzerland’s desire to be world class is not driven by arrogance; it is simply a question of survival. It is only by keeping pace with the world’s leading nations that we will be able to maintain our standard of living and to preserve our unique socio-political framework, as well as protecting our national identity. If, however, we merely compare ourselves with our direct neighbours because this is easier or less daunting, our global competitiveness will suffer and the prospect of joining the European Union (EU) will become more appealing. A focus on Europe increases the temptation to enter this giant single market, which is safeguarded by protectionism and destined for mediocrity. The EU would undoubtedly welcome Switzerland with open arms in order to achieve its goal of ensuring seamless conformity across Europe, as mentioned above. How should we address this situation? If we exclude the possibility of rapidly joining the EU and thus abandoning our individual identity, that leaves us with two options. The first is more obvious and appears easier – but would lead us in the wrong direction, while the second is longer and more demanding but could prove the route to success. The first solution would be to stage an emotional and nationalistic return to a few core Swiss characteristics and to thus isolate ourselves from the outside world. One of the greatest perils of the curVontobel Portrait 2011
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Keystone /AP
rent fragmented political situation is that those who have lost out under Switzerland’s successful approach to globalization are being manipulated by the conservative parties (or the conservative representatives within the parties). Were this tendency to increase, Switzerland could find itself adopting a defensive political and economic position that would leave it very vulnerable. If our country were to isolate itself psychologically, it would sooner or later fail to perform essential duties such as successfully integrating immigrants or further devel- “To become world class, Switzerland requires oping our multilingual federalism and concordance system. The a nation of well-connected, cosmopolitan greatest irony of all is that it is precisely this nationalistic approach citizens – and it will continue to cultivate this that would be most likely to drive us towards the EU since the subsetype of people.” quent economic and intellectual weakening of Switzerland would inevitably leave us with only two alternatives: to vegetate in economic mediocrity within the EU or to languish in isolation. If politically guaranteed market access to 400 million consumers were to become a matter of survival, then Bertolt Brecht is likely to be right when he declared: “Food comes first, then morals.” Any countries that want to preserve their success despite being geographically embedded in an increasingly homogenous group of states – as has been the case in Switzerland for centuries – will only be able to do so if they retain their individual identity while, at the same time, striving to compete in the international arena. It is only if we can keep pace with the world’s leading nations that we can secure our access to export markets without facing demands for political conformity. This is the only way in which we can extend and diversify our export markets. This is the only way that we can maintain and further enhance our standard of living. And finally, this is the only way that we can conserve our political independence. To become world class, Switzerland requires a nation of well-connected, cosmopolitan citizens – and it will continue to cultivate this type of people. Only an open-minded and internationally-oriented population will be able to master the challenges associated with multilingual federalism and to promote an inclusive multicultural society. Only a nation such as
Demonstrating our presence in the global arena: Swiss Pavilion at the EXPO 2010 in Shanghai 18
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this will be able to establish and maintain international contacts and networks that give us access to the global economy and help to secure our political acceptance. These are the very abilities that enable certain countries to flourish in the context of globalization and that have allowed Switzerland to perform well in the long term as a country that is located in the heart of Europe but remains outside the political sphere of the EU. Switzerland’s international approach will only gain broad-based acceptance within our country, however, if the specific characteristics of the Swiss system are simultaneously preserved. This involves striking a balance between global economic challenges and the support for the Swiss militia system. This approach must also promote social cohesion – an essential factor demanding the careful and conscious refinement of the established structures in our country. In doing so, Switzerland will attract disapproving glances from neighbouring countries. Someone who is different is only tolerated if he continuously earns respect with his performance and remains true to his values and ideals. Thanks to our longstanding principles and values, we are ideally positioned to achieve this: our humanitarian tradition, our efforts to help others and our willingness to welcome and integrate people into our community are all fundamental aspects of our identity. The path we must take is challenging. It involves systematically aligning our education system, infrastructure and other locational factors to world-class standards, while consciously developing multi-polar, global economic and special interest policies and thus promoting and securing Switzerland’s position as a centre for successful international companies. It is only by ensuring our economic success that Switzerland will have the political power to create a unique combination of direct democracy, federalism, lean and accessible bureaucracy and internal tax competition. It is only by achieving success in the global arena that Switzerland will have the financial resources to continue developing its tradition of humanitarian aid and its work to help others. And it is only under these conditions that we will be able to retain our national identity and gain respect for the fact that we are different. Reprint taken from ‘‘Schweizer Monatshefte’’
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Vontobel in Geneva: Vive la différence The Vontobel Group has a presence in 19 international locations, where it operates according to the same proven business model and shared values. Certain regional differences nevertheless exist, as illustrated by its branch in Geneva.
All of Vontobel’s branches around the globe share the same solid values and focus on the same guiding principle ‘‘performance creates trust’’ – and yet anyone who visits the bank’s different locations soon becomes aware of the special qualities and distinctive character of each region. This is immediately visible when you glimpse the sandstone building in Geneva that is home to Vontobel’s team of 70 employees. Its classical style of architecture, which is typical of the city, contrasts sharply with the modern lines and glass façade of Vontobel’s head office in Zurich. Jean-Pierre de Glutz, Head of Vontobel in Geneva, expresses the importance of the combination of diversity and unity within the company as follows: “Solidity and tradition form the foundations on which our broad-based private bank is built. These two factors provide a strong sense of cohesion within Vontobel. And our shared goal is also of decisive importance: we are committed to generating added value for our clients relative to their risk exposures and the development of the financial markets. To achieve this, we can count on our own internal team of outstanding specialists and our first-class product offering, as well as our in-depth expertise that meets the complex needs of institutional as well as private clients.” The mindset that prevails among the inhabitants of Geneva is a fascinating blend that mirrors the historical development of the city: it was strongly influenced by 20
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Calvinist values such as industriousness and determination and has, over the centuries, evolved into a highly prosperous international centre. The self-confidence that has resulted from this economic success, coupled with the joie de vivre of its French-speaking population, has helped to create the unique attitude towards life that is characteristic of the city today. As the Head of Vontobel in Geneva – the bank’s second largest branch – Jean-Pierre de Glutz has a precise understanding of his clients’ needs and knows exactly which strategy will lead to success. “With our core competencies in private banking, investment banking and asset management, we can offer a combination of firstclass expertise and tailored solutions from a single source. We place clients at the centre of all that we do based on the knowledge that it is only by acting as a highly motivated and reliable partner that we can earn their trust. At the same time, we are committed to further expanding our business activities in the Frenchspeaking region of Switzerland and to convincing even more potential clients of Vontobel’s strengths. This reflects our aim to systematically grow our operations and to invest further in promoting our brand and enhancing our image.” ‘‘First class’’ and ‘‘solid’’ are terms that are also closely associated with Geneva. A large number of globally active companies have been attracted to this city, which is
Jean-Pierre de Glutz, Head of the Geneva branch
Banque Vontobel, Geneva
6, place de l’Université
renowned for its international focus, high standard of living and solid political foundations. It is also home to more than 20 international organizations. However, this exceptional environment does not diminish the need for the financial institutions that operate there to distinguish themselves from the competition by providing first-class services. All the members of Vontobel’s team in Geneva agree that it is the truly personal service they
offer that is critical in setting Vontobel apart from its peers. Their systematic focus on client service demands the very highest level of professionalism and a strong degree of continuity that inspires trust. This mix of consistency and reliability is regarded as a typical Swiss trait. Vontobel’s clients assign the utmost importance to stability – a hallmark of Switzerland and of our company – and to the goal of long-term wealth preservation. Vontobel Portrait 2011
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Francesco Gallo, Senior Advisor, Financial Products Zurich, Vontobel Investment Banking
Structured products: Swiss quality thanks to optimal precision Bank Vontobel’s Investment Banking business has, for many years, been committed to creating customized investment products that provide clients with highly flexible and innovative solutions. Its success in the market confirms the merits of this strategy.
Despite the countless possibilities in investment banking, there will never be one single solution that satisfies the needs of every client. At Vontobel, we have consistently endeavoured to not only offer the highest quality of investment banking products and services but to align them precisely to the individual wishes of the end client. As in the case of clothing, we believe that irrespective of quality, tailored solutions are always superior to ‘‘off-the-peg’’ products. Unlike in the case of many other banks, Vontobel’s Investment Banking business is positioned as a service provider for our wealth and asset management businesses. The structured products it offers are designed as investment solutions for private investors and are a substitute for equities, bonds, commodities and other asset classes. We construct investment solutions in a way that ensures they meet the individual needs of our clients as 22
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flexibly as possible and cater for all market environments and risk preferences. This can be compared to a Swiss army knife, where clients can order an individually tailored model that is both solidly and precisely crafted. Vontobel Investment Banking is one of the few providers that enables its professional clients as well as wealth and asset managers to create a product themselves, based directly on their own individual goals. This is achieved using the electronic trading platform deritrade.ch, which is available to Vontobel clients. We were one of the first issuers in the Swiss market to enable clients to independently structure their own certificates based on a universe of over 600 underlying assets and a broad selection of currencies. Historical performance simulations, dynamic fact sheets, detailed risk classifications, data on the sensitivity of structured products and a host of other features are available to professional and
Manuela Quirici, Engineering & Development, Product Legal Zurich, Vontobel Investment Banking
private investors at www.derinet.ch. Vontobel also offers clients first-class support through its comprehensive after-sales service. A sophisticated infrastructure such as this requires a high level of investment – raising the question of whether this approach is cost effective. “As one of the leading issuers in Switzerland, we are able to put our infrastructure to very good use. This balance between investment and utilization allows us to offer clients attractive conditions. No matter how high the quality of our products, their prices have to be competitive”, explains Georg von Wattenwyl, Head of Financial Products, Advisory & Distribution. The trust that clients and partners place in the services of Vontobel Investment Banking is reflected, in particular, by the positive trends reported by the business
“There is a clear trend towards customized products.” Georg von Wattenwyl __ Head of Financial Products, Advisory & Distribution in recent years despite (and also because of) the economic crisis. It is today an important pillar of the Swiss bank, which has been operating in this field consistently and systematically for many years. Wattenwyl points to the fact that clients are seeking increasingly custom-
ized solutions: “There is a clear trend towards customized products. By tailoring our investment solutions to individual client needs as simply and comprehensibly as possible, we help our clients and their relationship managers to properly understand the related opportunities and risks.” Thanks to our electronic issuing platform deritrade®, Vontobel provides the optimal solution to achieve this in the area of structured products.
In Investment Banking, we provide private clients, companies and institutional investors around the globe with a diverse range of solutions from a single source. Our advisors and product experts have many years of experience and in-depth expertise. In addition, clients benefit from our excellent level of service. As well as offering innovative solutions, we assign considerable importance to ensuring the liquidity and transparency of our products.
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Shared qualities and values define Vontobel’s partnerships in the area of sponsorship.
Elizabeth Carecchio
Melanie Duchene/EQ Images
Cultural, sporting and social commitments
Siegfried and Brünnhilde – the protagonists in Richard Wagner’s opera ‘‘Siegfried’’ from ‘‘The Ring of the Nibelung’’
Tradition and modernity – the Salzburg Easter Festival skilfully combines both elements
Culture __ Salzburg Easter Festival The Salzburg Easter Festival is one of the most renowned and exclusive classical music festivals in the world. Founded by Herbert von Karajan in 1967 to provide a platform for exceptional musical talent, it remains true to this principle today. This is why the Vontobel Group is proud to have lent its support to this outstanding musical event as one of its main sponsors for 13 years. A compelling combination of tradition and modernity is what connects us to the Salzburg Easter Festival.
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Andreas Bodmer
Melanie Duchene/EQ Images
Passion and performance – the key to success
The meaning of life and the search for happiness – the theme of a panel discussion between leading experts in May 2010
Sport __ Grasshopper Club Zurich
Society __ NZZ Podium
Sport is a unifying force and a source of inspiration. The Grasshopper Club (GC) has 4,500 members, making it the largest and most successful multisport club in Switzerland. It has close ties with Zurich and a history dating back 125 years. The club’s values – which centre on reliability and fairness – fit well with Vontobel’s corporate culture. We are therefore committed to sponsoring GC which combines sporting excellence and tradition. Whether it is on the pitch or in banking, passion and performance are what matter. GC also adopts an exemplary approach to the cultivation of young talent – based on a credible and sustainable concept. This focus on young people is a key element of our sponsorship philosophy.
The Vontobel Group has been one of the main sponsors of NZZ Podium since it was launched in 2007. The pace of change in society, the economy and the political arena is constantly accelerating and these areas are growing ever more complex. The latest knowledge and indepth expertise are of critical importance in this context. By sponsoring NZZ Podium, we are supporting a firstclass public forum that provides insights into current issues and in-depth analyses. We believe that the permanent exchange of knowledge across boundaries creates significant added value for our society. We therefore want to make a sustainable contribution to this process through our partnership with NZZ Podium.
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Small and medium-sized enterprises: the backbone of our strong Swiss economy Small and medium-sized enterprises (SMEs) play a pivotal role in the Swiss economy. Which factors have contributed to their strength and international success and to the globally established reputation for Swiss quality? Bruno Basler They may not attract the same high level of media attention as major corporations but Swiss SMEs nevertheless form the backbone of the Swiss economy as the country’s largest employer. They create energy and drive through the collaboration of their innovative and highly trained employees. This skilled workforce is the product of the excellent basic schooling and practical professional training offered in Switzerland, which is complemented by the country’s universities of applied science and its internationally renowned institutes of technology and universities. As a centre of industry, knowledge and learning, Switzerland combines practical, technical and academic expertise on a level that is unparalleled anywhere else in the world. Many SMEs make generous, long-term investments in the training and development of talented young employees. This inspires a high level of loyalty among staff and prompts an open exchange of knowledge and ideas, providing them with a vast pool of accumulated expertise. Employees are encouraged to show initiative and to act responsibly for the benefit of the company as a whole. Decisions are reached on a decentralized basis by the relevant teams wherever possible – with a firm focus being placed on the matter in hand. In this decision-making process, content takes precedence over status and priority is assigned to the best arguments, not to an individual’s position within the company’s organizational chart. Contrary to various clichés, Switzerland’s economy and society have, for centuries, been closely connected with the international marketplace and the global com26
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munity on a number of levels. The same can be said of Swiss SMEs. Many of their employees are continuously broadening their international experience by completing training courses or working in other countries for several years. As a result, they grow in confidence and enjoy their international roles more and more, improving their language skills and broadening their knowledge of other cultures in the process. Many SMEs evolve into true export champions as a result of their broadbased entrepreneurial initiative. For example, Ernst Basler + Partner is involved in complex Swiss projects such as AlpTransit and Zurich Airport together with leading European architectural and engineering firms. Conversely, it also joins forces with local companies and experts on initiatives such as a program to further develop waste management in China’s cities, a scheme to preserve water quality in Lake Ohrid in the border region between Macedonia, Albania and Greece, and efforts to promote renewable energies in Ecuador. In addition to their excellent standard of training, responsible conduct and strong network of international contacts, Swiss SMEs also share an unwavering commitment to quality and a relentless client focus. Accordingly, they assign much greater priority to long-term performance and continuous development than to the realization of short-term growth or profit targets. If SMEs remain true to these principles, this will not only contribute to the strengthening of their own business and of the Swiss economy but will also help to underpin the concept of ’Swissness’ as a hallmark of superlative quality.
Keystone Flughafen Z端rich AG
Gotthard Base Tunnel: the breakthrough in the 57-kilometre rail tunnel that will enable passengers and goods to be transported through the Alps
Zurich Airport: modern architecture combined with functional technology for the benefit of air passengers
Bruno Basler __
Civil Engineer Degree in Engineering from the Swiss Federal Institute of Technology, Zurich (ETH), MBA from INSEAD. Bruno Basler is the second generation of his family to work in the family firm Ernst Basler + Partner. He is a member of the Board of Directors of Vontobel and two other family-run businesses.
Ernst Basler + Partner (www.ebp.ch) is an independent engineering, planning and consulting company. It has over 300 employees who work in Switzerland and Germany, as well as on international projects that have been conducted in a total of 60 other countries to date. Ernst Basler + Partner played a significant role in the two projects illustrated above.
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The rapid growth in the emerging markets is driving up the demand for raw materials
Capitalizing on global trends through active asset management The world's population is expected to grow to 9 billion people by 2050. This will lead to a massive rise in consumption and will intensify the pressure on non-renewable resources. The Vontobel funds in the Global Trend product line invest in promising solutions for the future. At the end of 2010, our planet was home to 6.93 billion people. The UN has estimated that between now and 2015, the global population will increase by 79 million – annually. This rapid growth shows no signs of abating. It is already possible to predict the consequences of this trend, such as a massive rise in consumption. Ten years from now, the middle classes in China and India alone will consist of around 700 million people – which is equivalent to the total population of Europe today. These people will be well educated and will have more financial resources than at present – and their material needs will be modelled on western standards. The question we must ask is therefore: how can we satisfy the growing demand for consumer goods – and consequently also for raw materials and basic foodstuffs? There are three possible solutions: the first is the 28
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more efficient exploitation of existing resources; the second is the more sparing use of these resources; and the third is the replacement of existing resources through new solutions. Fossil fuels such as oil and natural gas are finite resources and the extraction of them entails significant risks. In addition, it is becoming increasingly expensive to tap into new fuel reserves. We are still far from having exploited the full potential offered by renewable energies or, for example, the development of engines that consume less fuel. However, even these efforts do not represent a credible alternative. Sreejith Banerji points to a further challenge that is often overlooked in this context: “The UN estimates that the per capita availability of land for cultivation will decline by around half by 2050 compared to today,” comments the fund manager, providing further food for thought. The supply of basic
Dr. Linda Thöny, EMPA, informs Sreejith Banerji about the latest findings in the field of enzyme research
foodstuffs will grow even more limited in the future, increasing the risk of social unrest and political turmoil. From today's perspective, only the third solution appears realistic in the long term: it is solely by successfully substituting finite resources with renewables and alternatives that we will be able to maintain the necessary supplies in the long term. The first positive results in this
for future-oriented and responsible business management. For example, in the field of Global Change Investing, experienced portfolio managers look for firms that manage innovative solutions and technologies more effectively, facilitate the more efficient extraction of resources, offer solutions to increase income or develop innovative synthetic substitutes to raw materials that are becoming depleted in the natural resources sector.
“Enzymes and other microorganisms are today replacing oil and gas-based products” Sreejith Banerji __ fund manager of the Vontobel Fund – Global Trend Future Resources area have attracted a high level of interest. “Enzymes and microorganisms are today replacing oil and gasbased products in detergents and textiles, for example,” states Sreejith Banerji. What is more: an enzyme-based solution for the production of biofuels from agricultural waste already exists. This breakthrough is infinitely more important since biofuels were previously produced using edible plants such as corn, soya or sugar cane – a process that is difficult to justify from an ethical perspective in view of food shortages. For more than a decade, Vontobel Asset Management has specialized in identifying the investment opportunities resulting from these developments. Expert analysts evaluate whether companies meet the criteria
As a multi-boutique asset manager, we offer innovative and transparent investment solutions for private and institutional clients. Our investment expertise is based on an active asset management approach. We are passionately committed to our goal of generating high performance quality. The numerous independent awards we have won confirm our success in this area.
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“Our values are what matter”
Dr. Hans Vontobel If it is true that every crisis is a source of opportunity, then it is worth taking a close look at the recent financial crisis and currency crisis – whose effects are still being felt – to determine how we can benefit from them today. I believe that these crises, which had a truly global impact, offer us a unique opportunity to identify past mistakes and to analyze all the factors that led to this highly complex situation. I am not so much interested in the individual details as in the fundamental “In challenging periods in particular, it is vital issues – the parameters that shape our actions. In this confor each country to return to its values and text, I think it is not only helpful but also essential to reflect traditions. This is especially true in the case of on and return to our traditional values. I am referring here to those values that have always been the hallmarks of Switzerland.” Switzerland: hard work, punctuality, reliability, quality, respect and discretion. They are the core values that have enabled us to compete successfully in the global marketplace; they are the values that we must strive to uphold in the future. One could argue that banking is primarily about concrete or tangible values. Many people therefore believe that clear and binding rules are all that is needed in this business, while specific ethical values are less relevant or even unimportant. In contrast, I firmly believe that rules alone are not enough. In today’s banking world, it is vital to have respectable, honest professionals with a high level of financial expertise and a good understanding of human nature who can communicate openly with their clients and business partners and work with them to build a relationship of trust. In this era of globally interconnected economies and markets, I find it misguided to believe that companies can be managed and supervised on the basis of financial data alone. Clear beliefs and powerful values are what are needed. We are continuously being tempted to abandon our values and proven virtues such as modesty, moderation and far-sightedness in order to generate a quick profit. There is always the hope, however, that if good values are lost, we will find new ones to replace them. I was recently asked in an interview whether a medium-sized Swiss private bank has a different set of values to a British or American big bank. My answer was a definite ‘‘yes’’. In recent years, many big banks have blindly adopted much of the American value system instead of relying on their own proven principles. In challenging periods in particular, it is vital for each country and its people to return to their values and traditions. This is especially true in the case of Switzerland. American attitudes and ideas are often much too dominant in today’s financial and corporate world. I believe that the resulting business philosophies are not always sustainable due to the excessive focus they place on quarterly and annual results. I consider it my role to encourage as many people as possible to adopt a long-term, sustainable view – including within our own company. But how can a bank like Vontobel ensure that its employees actively preserve its values and traditions? The answer is simple: by re30
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Dr. Hans Vontobel, Honorary Chairman of the Vontobel Group
lentlessly striving to uphold our principles and by learning from our mistakes. At Vontobel, we instil a sound and sustainable set of values in our people. I believe that our unwavering belief in our own strengths is part of this. As we all know, the Swiss financial centre has faced many challenges in the past and has repeatedly come under intense external pressure. However, this should not cause us to abandon our liberal principles or to gradually surrender the protection of our clients’ financial privacy, for example. Today, many people once again view this international pressure as a threat to our financial centre. I see it differently: this pressure undeniably exists but should be regarded as an incentive for Switzerland and its banks to boldly address current challenges and to seek new and innovative solutions. Bank Vontobel has always acted according to this principle and has performed very well over the decades as a result. Our clients value this greatly. They have confidence in our values-based approach, the success of which is founded on a unique combination of tradition and innovation, responsibility and performance. Vontobel Portrait 2011
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Where to find us
Switzerland Vontobel Holding AG Gotthardstrasse 43 CH-8022 Zurich Telephone +41 (0)58 283 59 00 Telefax +41 (0)58 283 75 00 www.vontobel.com Bank Vontobel AG Gotthardstrasse 43 CH-8022 Zurich Telephone +41 (0)58 283 71 11 Telefax +41 (0)58 283 76 50 Bank Vontobel AG St. Alban-Anlage 58 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 Vontobel Fonds Services AG Gotthardstrasse 43 CH-8022 Zurich Telephone +41 (0)58 283 74 77 Telefax +41 (0)58 283 53 05 Vontobel Securities AG Gotthardstrasse 43 CH-8022 Zurich Telephone +41 (0)58 283 71 11 Telefax +41 (0)58 283 76 49 Vontobel Swiss Wealth Advisors AG Toedistrasse 17 CH-8022 Zurich Telephone +41 (0)44 287 81 11 Telefax +41 (0)44 287 81 12 Austria Bank Vontobel Österreich AG Rathausplatz 4 A-5020 Salzburg Telephone +43 (0)662 8104 0 Telefax +43 (0)662 8104 7 Bank Vontobel Österreich AG Kärntner Strasse 51 A-1010 Vienna Telephone +43 (0)1 513 76 40 Telefax +43 (0)1 513 76 402 32
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Vontobel Europe SA Niederlassung Wien Kärntner Strasse 51 A-1010 Vienna Telephone +43 (0)1 513 76 40 Telefax +43 (0)1 513 76 40 600
Liechtenstein Bank Vontobel (Liechtenstein) AG Pflugstrasse 20 FL-9490 Vaduz Telephone +423 236 41 11 Telefax +423 236 41 12
Germany Bank Vontobel Europe AG Niederlassung Frankfurt am Main Kaiserstrasse 6 D-60311 Frankfurt am Main Telephone +49 (0)69 297 208 0 Telefax +49 (0)69 297 208 33
Vontobel Treuhand AG Pflugstrasse 20 FL-9490 Vaduz Telephone +423 236 41 80 Telefax +423 236 41 81 Luxembourg Vontobel Europe SA 1, Côte D’Eich L-1450 Luxembourg Telephone +352 26 34 74 1 Telefax +352 26 34 74 33
New address from 16 May 2011: Bank Vontobel Europe AG Niederlassung Frankfurt am Main WestendDuo Bockenheimer Landstrasse 24 D-60323 Frankfurt am Main Telephone +49 (0)69 297 208 0 Telefax +49 (0)69 297 208 33 Bank Vontobel Europe AG Niederlassung Hamburg 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 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 Europe AG Asset Finance Maximillianstrasse 34 D-80331 Munich Telephone +49 (0)89 411 890 0 Telefax +49 (0)89 411 890 669 Great Britain Vontobel Europe SA London Branch Third Floor 22 Sackville Street London W1S 3DN Telephone +44 207 255 83 00 Telefax +44 207 255 83 01 Hong Kong Vontobel Asia Pacific Ltd. 2301 Jardine House 1 Connaught Place, Central, Hong Kong Telephone +852 3655 3990 Telefax +852 3655 3970 Italy Vontobel Europe SA, Milan Branch Piazza degli Affari, 3 I-20123 Milan Telephone +39 02 6367 3411 Telefax +39 02 6367 3422
Vontobel Fund Advisory SA 1, Côte D’Eich L-1450 Luxembourg Telephone +352 26 34 74 1 Telefax +352 26 34 74 33 Vontobel Management SA 1, Côte D’Eich L-1450 Luxembourg Telephone +352 26 34 74 40 Telefax +352 26 34 74 33 Spain Vontobel Europe SA, Sucursal en España Paseo de la Castellana, 40 bis - 6° E-28046 Madrid Telephone +34 91 520 95 34 Telefax +34 91 520 95 55 USA Vontobel Asset Management, Inc. 1540 Broadway, 38 th Floor New York, NY 10036, USA Telephone +1 212 415 70 00 Telefax +1 212 415 70 87 www.vusa.com Vontobel Securities Ltd. New York Branch 1540 Broadway, 38 th Floor New York, NY 10036, USA Telephone +1 212 792 58 20 Telefax +1 212 792 58 32 vonsec@vusa.com U.A.E. Vontobel Financial Products Ltd. Liberty House, Office 913 Dubai International Financial Centre P.O. Box 506814 Dubai, United Arab Emirates Telephone +971 (4) 703 85 00 Telefax +971 (4) 703 85 01 Vontobel Invest Ltd. Liberty House, Office 913 Dubai International Financial Centre P.O. Box 506814 Dubai, United Arab Emirates Telephone +971 (4) 703 85 00 Telefax +971 (4) 703 85 01
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Vontobel Holding AG Gotthardstrasse 43 CH-8022 Zurich Telephone +41 (0)58 283 59 00 Telefax +41 (0)58 283 75 00 www.vontobel.com