Executive Global Autumn 23

www.executive-global.com | Autumn-Winter 2023

Productivity | Strategy | Profitability

EGON VON GREYERZ

Explains the math on gold and currency debasement

MICHAEL PENTO

On the risk of U.S. sovereign default

HARRY DENT

The world needs a debt detox

+ RANDY FERREIRA

Profitability in multifamily management

ELITE LUXURY CLEANERS Danielle Vest’s leading insight into becoming America’s trusted and reliable commercial cleaning source for affluent institutional and private clients

INSIDE

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CONTENTS

AUTUMN-WINTER 2023

EXECUTIVE GLOBAL

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30 EDITOR-IN-CHIEF John Marshall HEAD OF PRODUCTION Peter Green EDITORIAL Thomas Hughes, Rachel Smith, Oliver Taylor, Shannon Berkley, Vincenzo Morello, Cheryl Jones ART DIRECTION & DESIGN Stormcues Limited BUSINESS DEVELOPMENT Steve Williams, David Warmann, Jack Moore, David Goldwin, Mike Walsh COMMERCIAL DIRECTOR Luke Francis PHOTOGRAPHY James Drake, Sarah Dean, Rick Thompson Executive Global Magazine is published by: Stormcues Limited 405 Kings Road Chelsea London SW10 0BB Tel: +44(0)207 993 4782 www.executive-global.com ADVERTISING advertising@executive-global.com EDITORIAL editorial@executive-global.com The information in this publication has been obtained from sources the proprietors believe to be correct, however no legal liability can be accepted for any errors. No part of this magazine may be reproduced without the consent of the publisher.

Executive Global is registered trademark ® of Stormcues Limited.

Copyright © 2023 Stormcues Limited. All Rights Reserved.

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• Productivity, Strategy, Profitability

FRONT COVER FEATURE Elite Luxury Cleaners

Self-invested personal pensions 24

Our cover feature and CEO Profile on Elite Luxury Cleaners highlights the stellar contribution of one of America’s pre-eminent commercial cleaning firms with Danielle Vest, Founder & CEO of Preferred Cleaning Service, Inc.

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Executive Global’s bespoke series of interviews on Productivity, Strategy, and Profitability. We discuss multifamily real estate management with Randy Ferreira, CEO of Blue Roc Premier.

28

David Morgan, CEO, The Morgan Report, examines how trust may be restored in silver.

Gold’s last, dark laugh Why the Iron Lady was right

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Harry Dent returns to examine the economy and the why the world needs a debt detox.

U.S. sovereign default risk escalates 18 Michael Pento, President, Pento Portfolio Strategies reveals the state of the bond market.

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Shannon Berkley examines Margaret Thatcher’s insightful criticism of central banks, 33 years on.

LEGAL & ADVOCACY The Panama travel passport

FINANCE The tipping point

What market conditions?

Egon Von Greyerz and Matthew Piepenberg reveal the sad reality of economic history.

PROFITABILITY Multifamily management

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Thomas Hughes takes a look at how pensioners can have more control over their investments.

34

Maria Gomez-Tomiczek, explains why this is ‘not just a document’ but unlocks many options.

What is private client law?

36

Shannon Berkley looks into the broad field of private client law for High net worth clients.

Trust legislation in the TCI

38

Oliver Taylor discusses trust and private client legislation in the British Overseas Territory.

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CONTENTS

AUTUMN-WINTER 2023

EXECUTIVE GLOBAL

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20 48

FOREIGN DIRECT INVESTMENT

PRIVATE AVIATION

The province of the adventurous 40 The ultimate experience Vincenzo Morello reports on the landlocked province of Alberta in Western Canada.

The Ecuador economy

54 The Beauty of St. Barthelemy

United Airlines is a prominent player within the aviation industry. Rachel Smith tells us more.

Thomas Hughes reports on why Bermuda is now a popular jurisdiction for aircraft owners.

44 Aircraft finance and leasing

Rachel Smith examines circumstances where aircraft financing or leasing could be desirable.

TECHNOLOGY

EXECUTIVE EDUCATION

Xpeng X2 Multispectral imaging

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62

Oliver Taylor explores how network marketing prepares individuals for entrepreneurship.

52 The Outlook for LatAm

Pierre Lemire, CEO, Kent Imaging, updates us on current developments with SnapshotNIR.

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Andreas Kaplan, President, Kühne Logistics University, looks at the changing environment.

50 An entrepreneurial mindset

Oliver Taylor takes a look at the exciting fifth generation eVTOL aircraft and its capabilities.

Rachel Smith looks at turnkey residences and multifamily real estate investing for UHNWIs. Cheryl Jones takes a peek at one of Patek Philippe’s highly regarded timepieces.

Industrial and commercial cleaning 72

48 Business education’s rising rivalry 60

Shannon Berkley examines sovereignty in an era of centrally planned censorship.

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58 Grand complications tourbillon 70

Thomas Hughes reports on the incentives for economic growth in the lone star state.

Monero vs Bitcoin

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Shannon Berkley reviews the beautiful French-speaking Caribbean island.

42 Aircraft registration in Bermuda 56 Real estate investing

Rachel Smith looks at FDI and tourism in the country known for its natural beauty.

Texas 4B corporations

LUXURY LIFESTYLE

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Andrew Main Wilson, CEO, AMBA & BGA, on the 18th annual Latin America conference.

Thomas Hughes, on the important need for specialised cleaning firms for business.

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EDITOR NOTE

Foreword

EXECUTIVE GLOBAL Editor’s Note

Human Freedom Truly Rests on Gold Redeemable Money There is a reason why heavyweight championships in professional sports are titles adorned with in gold, Olympians are rewarded with gold medals for top prizes, the Academy Awards and Emmy Awards are plated in gold. t is the same reason well-known aphorisms like ‘as good as gold’, ‘all that glitters is not gold’ and ‘the golden rule’, exist and are widely understood in modern day vernacular. The relationship that human beings have with gold as a store of value, goes back to ancient times. The fact is that because gold is money, it is disliked by dishonest men. It represents the diametric opposite of debt.

Gold is valuable everywhere in the world and is not dependent on political systems. For over 5,000 of recorded human history, no other element on Earth has been trusted as a safe haven and an intrinsically valuable asset for wealth preservation than physical gold. It is the world’s most malleable metal that does not rust or corrode. It has served as the basis from which to establish empires, the capital reserves from which to endure through war, and even the coveted element used

by The Most High to pave the streets of heaven.

Congressman Howard Buffett of Nebraska, father of famed investor Warren Buffett, penned the paper Human Freedom Rests On Gold-Redeemable Money as a prescient warning against the dangers of reckless monetary policies that central banks and their Government lackeys tend to engage in when all manner of fiscal discipline flees from an economy. In a tragic case of being doomed to repeat the unlearned errors of history, the scoreboard is clear on the importance of restoring the function of this asset in today’s financial system. Hyperinflation occurred in Ancient Egypt.

Hyperinflation occurred in Ancient Rome. Hyperinflation occurred in Ancient Greece. Hyperinflation occurred in Weimar Germany. Hyperinflation occurred in Hungary.

Hyperinflation occurred in Yugoslavia. Hyperinflation occurred in Venezuela. Hyperinflation occurred in Zimbabwe.

Gold was usually the only exit route from these kind of financial crises.

In his paper, Howard Buffett remarked that one of the first moves by Lenin, Mussolini and Hitler was to outlaw individual

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ownership of gold. This of course illustrates the inextricable link between physical gold ownership and human liberty, as the former has always been perceived to be a threat to tyrants who are otherwise unable to run roughshod over the liberties of their citizens through the issuance of fiat currency. Similarly, Ralph Waldo Emerson also comprehended this when he commented that the desire for gold is ‘not for gold, but for the means of freedom and benefit.’ Howard Buffett goes on to state that ‘whenever the people became disturbed by Federal spending, they could go to the banks, redeem their paper currency in gold, and wait for common sense to return to Washington.’

How would a programmable Central Bank Digital Currency, that is backed by thin air, be of any benefit to the cause of human liberty if the issuers of such a CBDC may one day attach social credit scores, utilise it as a tool to trap, track and surveil citizens, or even ‘switch it off ’ at an arbitrary whim? If Agustín Carstens’ startling admission that such a tool would give various authorities complete control over every minute transaction in your life, then a CBDC would represent the nano thermite and controlled demolition of your personal freedoms. Therefore, the ultimate manifestation of profitability for executives today will be in realising before the masses of people do, that those entrapped by the herd instinct are drowned in the deluges of history; for gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but CBDC-issued debt is the money of slaves. EG

John Marshall John Marshall Editor-in-Chief, Executive Global

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Best Digital Bank - Chile Banco Santander

Best Luxury Watch Manufacturer - Switzerland Patek Philippe SA

Best Commercial Bank - France BNP Paribas

Best Commercial & Industrial Cleaning Firm - North America Preferred Cleaning Service, Inc

Best Global Financial Services Provider - British Virgin Islands BVI Finance

Multifamily Real Estate Entrepreneur of the Year - United States Randy Ferreira - Blue Roc Premier

Most Innovative Automobile Manufacturer - France Hopium

Best Business Insurance Provider - Switzerland Swiss Re

Best Wealth Management Bank - Switzerland Lombard Odier

Best First Class Airline Lounge - North America Virgin Atlantic

Productivity | Strategy | Profitability

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FINANCE

Economy & Markets

The Tipping Point I am finally sensing that we’ve come to the “tipping point” in this now 15-year battle against a deep recession/depression and debt detox since the last recession set in around the beginning of 2008.

Article by

Harry S. Dent Jr

BESTSELLING AUTHOR & EDITOR, THE HS DENT FORECAST

he point where we’ve run out of tricks, cover-ups, excuses, and something for nothing policies that just kick the can down the road. We’re at the end of that road it appears! There is finally nothing to do but face the obvious: We have record and astounding levels of debt as a percent of GDP at all levels – and we have to go through a restructuring of that debt. In business we call it that a Chapter 11 bankruptcy.

And by the way, that brilliant approach was first introduced in the United States in 1978.

The first laws around bankruptcy appeared in the Bankruptcy Reform Act of 1898, but Chapter 11 was added to Chapter 7 in the Bankruptcy Reform Act of 1978. In Chapter 7, the company goes bankrupt, terminates, and then the assets are sold off to compensate creditors depending on their seniority of claims.

Chapter 11 introduced the brilliant, more enlightened approach. Protect the company long enough for it to re-negotiate with creditors and cut costs, etc., and have a chance at profitability again – a win-win for the company and creditors.

Now the company can talk to creditors while being protected from them temporarily and say something like: Would you accept a 50% reduction in your debt to us rather than likely getting only 10% or 20% if we just go under and have a fire sale on our assets?

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Chapter 11 bankruptcy was actually a huge breakthrough in history, and it first occurred in the U.S., the leading country since World War II. And it was in at least in small part a contributor to the greatest boom in history from 1983 into 2007 – before we entered the greatest, never-ending emergency stimulus program in history from 2008 into now.

Of course, there was a larger reason for that great boom: the Baby Boom generation. I was the first to both explain and predict that cause and effect in my first book in 1989 Our Power to Predict followed by The Great Boom Ahead in late 1992. It was simple: The largest generation in modern history would cause the greatest boom ever as they moved predictably into their peak spending at precisely age 46 on average.

But Chapter 11 bankruptcy was a big deal and one of the greatest legal financial innovations in history. How do you encourage the innovation and entrepreneurship that most characterises the

CHAPTER 11 BANKRUPTCY WAS ACTUALLY A HUGE BREAKTHROUGH IN HISTORY, AND IT FIRST OCCURRED IN THE U.S., THE LEADING COUNTRY SINCE WORLD WAR II.

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U.S. if you make failure a death sentence. And no surprise we saw the greatest boom in history since 1982 from the Baby Boom and this legal reform.

But now since the Baby Boom Spending Wave peaked in late 2007 as predicted, we’ve seen a 15year unprecedented, never-ending, off-the-charts stimulus program. What does that never-ending stimulus program look like: The Fed Balance Sheet in the chart included with this article.

DEFICITS, PRINTING, AND DEFLATION This chart simply shows the cumulative money printing by the Fed to fill in for the natural decline in spending as the largest generation continued to age past its peak spending years…until the next Millennial generation kicks in on a now 47-year peak spending lag from 2024 forward. And this does not count the unprecedented fiscal deficits, mostly in boom times, to add to that monetary stimulus. Normally we’re supposed to run balanced budgets or surpluses in good times to make up for the natural deficits in bad times when government revenues shrink and social expenses mushroom…Not since 2008!

After the greatest natural generational boom in history, and then the largest artificial stimulus program in history to follow to keep it desperately

FINANCE

Economy & Markets Photo: Gorodenkoff / Shutterstock.com

going for another 14 years, we have run out of tricks to put off a great, and much needed, fiscal and financial reckoning!

Along with runaway money printing, fiscal deficits became a way of life to offset a natural generational slowdown. That has been celebrated by many economists. But I see it as a grave mistake,

an attack on the greatest innovation of all, free market capitalism, that first merged with its opposite “spouse,” democracy, in the late 1700s.

I call that “When Harry Met Sally.”

To put it most simply: 2008 to 2023 has been the natural period of economic slowing between our two largest modern generations.

And after the Millennials peak ahead in the U.S. in 2037, demographic spending trends here and in the broader developed world will see a longerterm decline for as far as the eye can see. That’s something we have NOT seen in modern history: a generation not followed by a larger wave of earners and spenders in the next one. It’s all about the emerging world – the other 7 billion (rising towards 10 billion mostly in Africa) – after this!

The telling sign of how great a deflation and debt detox we are likely in for is the also simple fact that M2, or money supply, has already actually contracted for the first time since 1930-32… and we haven’t even officially entered a recession yet.

So, there is much more to come, and I say it will be called a depression after it has revealed itself more fully in the next few years. Deflation is simply a sign of a great restructuring of debt and financial asset bubbles, as only last occurred on a high level in the 1930s. This is the longest period in history without a deflationary debt spiral to cleanse the economy.

Such periods were more frequent between 1870 and 1932 as this chart shows.

THE WORLD NEEDS A DEBT DETOX The truth is we have never seen a greater need for a debt detox to get healthy again…the very thing central banks are fighting! Time for the U.S. and other debt-aholic countries to go into detox! And as I’ve been saying, we’re one of the best houses in a bad neighbourhood after the greatest debt binge in history.

And it’s not just the U.S. and North America going into deflation after Japan started the trend for the developed world in the 1990s. The Eurozone has seen two bouts of actual deflation in prices, the first in 2010 and the second one that will go much deeper just starting in 2023.

Banks are indeed tightening lending standards again just as they did before each financial crisis in this longer boom. I keep reminding that the Fed thinks the economy is fundamentally strong and can handle a $1 trillion balance sheet contraction and 525 bps rate rise that may go to 550bps just ahead.

I say this apparent economic strength is 100% from that $5.25T in monetary stimulus plus all of the fiscal deficits… a roughly $10T cocktail, or near 50% of GDP. We should be growing much faster given that! The illusion is that economists don’t clearly see the peaking and fading of the $5.2T in COVID stimulus now and forward while the 525bps+ and $1T balance sheet tightening keeps hitting harder into late 2024.

This should be obvious, but most don’t see it due to the 1–1.5-year lags in monetary policies.

It’s a simple calculation. The $5.25 balance sheet expansion peaked in March 2022 and falls around now forward into late 2024 on that lag. The 525bps rate hike and $1T balance sheet contraction hits on that lag well as well now into 2024…I see no way that 2024 is not a recessionary year – and with this unprecedented debt bubble, it will ultimately go down as a short depression! EG

For further information, please visit: www.economyandmarkets.com www.executive-global.com

Autumn-Winter 2023 •

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FINANCE

Pento Portfolio Strategies

U.S. Sovereign Default Risk Escalates The bond market is facing a serious challenge right now: too many bonds are being issued without enough buyers to purchase them.

Article by

Michael Pento

PRESIDENT, PENTO PORTFOLIO STRATEGIES

his means that the U.S. government debt is not trading smoothly but rather like a low-value and high-risk stock.

This dysfunctional trading environment should worsen exponentially by the end of Q1 2024.

The Federal government owes $33.5T and has paid $712b in interest this year alone. This interest cost will increase sharply in the next few years as the government has to borrow more at higher interest rates. Interest payments are already 17% of all Federal revenue and could quickly rise to 35% soon.

The deficits will be much more significant when the recession arrives, as the automatic economic

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stabilizers kick in, just as revenue collapses.

Entitlements and debt service payments will equal 100% of all revenue by 2040 at the very latest. At that point, there will be no room for any other government spending. Our bond market is fracturing, becoming an existential crisis for our financial system. What else would you expect when the nation’s annual deficit is 45% of our revenue, which adds to the national debt each year, an incredible 771% of federal yearly income?

THE FED AND THE BOND MARKET I have explained why long-duration bonds have been a no-touch for several months. This is because China and Japan sell their U.S. Treasury holdings to prop up their currencies. Japan is also easing its policy of keeping long-term interest rates low, which increases the relative attractiveness of JGBs over U.S. bonds. Disinflation is being replaced by reflation, and the Atlanta Fed’s incredible 5%

• Productivity, Strategy, Profitability

prediction for Q3 GDP puts more upward pressure on yields and keeps potential buyers at bay.

The big shock is that this instability is occurring while there is still $1.2 trillion in the Fed’s Reverse Repo (RRP) facility. Banks first parked their excess reserves, which resulted from the massive COVID stimulus packages from the Treasury, at the Fed to earn risk-free interest. That figure reached a high of $2.5 trillion in December of 2022. However, in the last five months, the amount in the RRP has crashed by over $1 trillion. This is, in essence, funding the Fed’s Q.T. program. If the current pace of RRP selling continues, the number of excess reserves parked at the Fed will be near zero by March of 2024. It will be at that point that much of the liquidity in the bond market will have disappeared.

One of the main reasons for the turmoil in the bond market right now is the excessive supply issuance, which stems from our unsustainable debt and deficits and the lack of foreign buyers.

FINANCE

Pento Portfolio Strategies would send deficits and debt skyrocketing from their already untenable $2 trillion level. The previous two economic downturns saw the yearly budget shortfalls more than triple. This means the U.S. would face an inevitable fiscal crisis, as the annual deficit could soar to $6 trillion, or an astonishing nearly a quarter of the entire GDP. In the same month, the RRP facility runs out, the $100 billion in distressed bank assets currently decaying in the Bank Term Funding Program are scheduled to return to these financial institutions at a fraction of par value. Banks must then give the Fed 100 cents on the dollar plus accrued interest.

Remember that these impaired assets threatened to render the entire regional banking sector insolvent at the start of this year. These Treasuries, MBS, and corporate bonds are even further underwater than when Mr. Powell first allowed them to be parked at the Fed. Oh, and by the way, March of next year will also be when the full-lagged effects of 500bps in monetary tightening begin to have their most significant impact.

Hence, within the next five months, the bond market should descend into complete chaos, and the Fed will be forced to end Q.T., start cutting interest rates towards the zero bound, and venture back into Q.E. once again. The stagflationary implications of all this will be staggering, especially since no investor will be conned into believing the Fed can adroitly fight inflation without paralyzing the banking system and the economy and risking a sovereign U.S. debt crisis.

Photo: Imago / Alamy Stock Photo

THE EXISTENTIAL CRISIS IS FOR 33% OF SMALL BUSINESSES, THE ENGINE OF EMPLOYMENT GROWTH. THEREFORE, THE LABOR MARKET SHOULD BEGIN TO FRACTURE BY EARLY 2024.

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In fact, they have turned into sellers of our debt.

The situation could worsen in the next few months when this vital source of easy Treasury liquidity dries up.

There are only two ways to save us from the coming bond market collapse possibly. The first is an immediate and complete restructuring of Social Security, Medicare, Medicaid, and Defense, including humongous cuts in benefits across the board.

This will be as easy for Congress to accomplish as a camel going through the eye of a needle. And if the impossible does occur, the resulting recession would be so catastrophic that it might render the nation insolvent anyway.

The other temporary salve would be if the delayed recession were to occur imminently. That would send investors scurrying out of equities and into the relative safety of U.S. bonds. However, again, the resulting amount of red ink from the election of the automatic economic stabilizers

PROBLEMS ON THE HORIZON The situation is dire for many small businesses in the U.S. A recent report by Bank of America revealed that almost 30% of the firms in the Russell 2000 index are losing money. These firms rely on cheap credit to survive, but the cost of borrowing has more than doubled since 2021. They used to pay less than 4% interest on their loans, but now they have to pay 9.3%. This puts their future at risk and could have a negative impact on the stock market.

This existential crisis is for 33% of small businesses, the engine of employment growth. Therefore, the labor market should begin to fracture by early 2024.

A spiking unemployment rate will cause the real estate market to endure the same dire fate as the bond and stock market.

There is still some money to be made in the overall market until the end of Q1 2024 arrives.

However, this is especially crucial for the 60/40 portfolio bag holders; you better identify when the freezing of the debt markets is about to arrive because securities could get wiped out across the board.

The swings between inflation and deflation will become more violent and destructive over time. Active and intelligent management is the best hope to survive and thrive in this chaos.

As always, we Pray for peace and try to love people as ourselves—this is how we prove our love for God is real. EG

For further information, please visit: www.pentoport.com Autumn-Winter 2023 •

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PRODUCTIVITY STRATEGY PROFITABILITY

Blue Roc Premier

PROFITABILITY

Profitability in Multifamily Management Interview with

Randy Ferreira

CEO, BLUE ROC PREMIER WWW.BLUEROCPREMIER.COM

Our special interview with Randy Ferreira, CEO of Blue Roc Premier, showcases the privately held fully-integrated real estate management firm focusing on multi-family management opportunities throughout the state of Florida and the Southeast. Executive Global gains an insight into what it takes to dominate the market while successfully managing assets exceeding $2 billion dollars in value.

Having successfully acquired over 15,000 units amounting to $2 Billion+ in asset value, you undoubtedly are a market leader.

Explain the advantages for investors working with experts with over 25 years experience in multifamily real estate?

I think it goes back to feeling confident in RF the markets you’re in and knowing what to expect, regardless of what the economic markets throw at you. Experienced operators have a sense of what it takes to be successful and usually rise to the occasion in the markets they are in.

EG

You have developed a proven track record for value-added and stabilised apartment properties. How fundamental have ethics and integrity been in establishing your stellar reputation?

Ethics and integrity in business to us is RF absolutely paramount. Our trademark culture has always been this: ‘‘striving to do the right thing”…we model this mantra in all aspects of our company culture. It has become the hallmark of our company’s core.

EG

How significant of a tool is multifamily real estate for investors seeking to achieve maximum yield in this market, when compared with other forms of property?

The multifamily investment vehicle has RF always been a consistent producer of steady yield. The key is not only the old adage of location, location, location, but just as important is having an operator who can execute the business plan regardless of economic market conditions. It’s obvious that people always need a place to liveEG

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regardless of interest rates and other economic factors. As a result, well located apartment properties that are well managed will continually maintain a solid economic position in the realm of comparable investment choices in commercial real estate.

Tell us how the risk-return profile for multifamily real estate makes this asset class more desirable for sophisticated, accredited and professional investors?

As long as the acquisition analysis includes RF criteria for being well located with good bricks and sticks so to speak, the risk-reward profile is usually very good. Unlike other asset types, apartments possess an emotional side to the investment. This is mainly because it involves people’s homes. When this is taken into consideration as part of the overall business plan, the success profile can increase dramatically in comparison to other asset classes. Renters sense value and sincerity in who is operating their home and are more receptive to increases in rents when this philosophy is a priority with the operator.

Multifamily as an asset type has become more acceptable over the years as a desirable investment to all types of investment groups.

EG

What would you say are four vital attributes required for successful property management?

There are so many more than of course just RF four but as it relates to only four; first, I would say a high priority to training the team members to realise we are dealing with people’s homes. Second is to prioritise the customer service aspect of our industry, third would be

• Productivity, Strategy, Profitability

EG

understanding that although it is people’s homes its also an investment that must be maximised.

Lastly, always striving to do the right thing in all your processes. In summary, the back to basics old school techniques and philosophies can never be forgotten as an incredible asset to successful property management.

Tell us about your most recent acquisition and the exciting opportunities for profitability offered to investors?

This past year has been dedicated to what we RF call recap opportunities. This is where we buy out our existing investors at market value who are ready to cash out and bring in other investors and equity to complete a new refreshed acquisition of an existing property. We then initiate an exciting second value add campaign. It launches another season of returns for the same asset by enhancing values with exciting new upgrades to the property.

EG

What can ultra high net worth institutional and private clients expect when working with you?

We have been operating in this business RF and in our markets over 25 years and have established a reputation as a best in class operator.

Most partners and investors can expect a firm that is well-versed in the market place, highly professional and seasoned. In addition, they can also expect partners that will always strive to do the right thing and never compromise on integrity. EG EG

For further information, please visit: www.bluerocpremier.com

The multifamily investment vehicle has always been a consistent producer of steady yield.

FINANCE

Pensions

Self-Invested Personal Pensions (SIPPs) A SIPP or Self Invested Personal Pension, is a kind of pension scheme available in the UK which enables individuals to have more control and flexibility over their pension investments, writes Thomas Hughes.

IPPS are ‘‘tax wrappers’’, allowing for tax rebates on contributions in exchange for limits on accessibility.

HMRC rules allow for a greater range of investments to behold than in ordinary personal person schemes, notably equities and property.

With a SIPP, you are able to choose from a wide variety of investment options, including stocks, bonds, funds, investment trusts and commercial property. Contributions made to a SIPP are eligible for tax relief, which means that the Government adds money to your pension pot based on your contributions and income tax rate.

However, there are limits to the amount you can contribute each year and the total value of your pension pot.

The rules and conditions for a broader variety of investments were initially set out in Joint Office Memorandum 101 issued by the UK Inland Revenue in 1989 and the first true SIPP was taken out in March 1990, offered by James Hay Partnership, based in Salisbury, Wiltshire and has remained one of the largest providers of SIPPs.

S

STRUCTURE Unlike conventional personal pensions where the provider as trustee has ownership and control of the assets, in a SIPP, the member may have ownership of the assets via an individual trust as long as the scheme administrator remains a co-trustee to exercise control. However, most SIPPS do not work this way and simply have the provider as SIPP trustee. The role of the scheme administrator in this situation is simply to control what is happening and to ensure that the requirements for tax approval continue to be met. The pensions sector uses four industry terms

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to describe generic SIPP categories: >Deferred - This is a personal person scheme in which most or all of the pension assets are generally held in insured pension funds (although some providers will offer direct access to mutual funds).

Self-investment or income withdrawal activity is deferred until an indeterminate date, and the gives rise to the name. In some newer schemes of this kind, there are over one thousand fund options, so they are not quite as restrictive as they once were. >Hybrid - This is a scheme in which some of the assets must always be held in conventional insured pension funds, with the remainder being able to be ‘self-invested’. The has been a common offering fro mainstream personal pension providers, who require insured funds in order to derive their product charges. >Pure or Full - These schemes offer unrestricted access to many allowable investment asset classes. >SIPP Lite or Single Investment - This is a more recent trend towards schemes that feature much lower fees for investments that are typically placed ion only one asset. Fr these reasons, an investment platform or a stockbroker/discretionary fund manager account usually is classed as a singe investment. An upgrade to a full SIPP in the future may be possible, depending on the scheme.

INVESTMENT CHOICES SIPP investors are able to decide what assets will be purchased, leased or sold, and decide when those assets are acquired or disposed of, subject to the agreement of the SIPP trustees. All assets are permitted by HMRC, however some will be subject to tax charges. The assets that are not subject to a tax charge include: >Gold bullion, which is specifically allowed

• Productivity, Strategy, Profitability

for in legislation, provided it is ‘‘investment grade’’ >Authorised UK unit trusts and open-ended investment companies and other UCITS funds >Ground rents (as long as they do not contain any element of residential property) >Unauthorised unit trusts that do not invest in residential property >Futures and options traded on a recognised futures exchange >Derivatives products such as a contract for difference (CFD) >Unitised insurance funds from EU insurers and IPAs >Stocks and shares listed on a recognised exchange >Commercial property (including hotel rooms) >Investment trusts subject to FCA regulation >Deposits and deposit interests >Traded endowments policies >Unlisted shares Investments currently allowed by primary legislation but subsequently made subject to heavy tax penalties (and therefore typically not allowed

by SIPP providers) include: >Any item of tangible movable property (whose market value does not exceed £6,000) subject to further conditions on use of property

FINANCE

Pensions

Photo: PeopleImages.com - Yuri A / Shutterstock.com

ALL BULLION MUST BE SECURELY VAULTED, WHICH MEANS YOU WILL NEED TO PAY ADDITIONAL STORAGE FEES. THERE MAY ALSO BE A MINIMUM INVESTMENT LEVEL FOR SIPP GOLD.

>Exotic assets including vintage cars, wine, stamps and art >Residential Property SIPPS AND GOLD The first step is to ensure that your scheme lets you hold gold in a SIPP. Even if your current provider does not allow gold bullion in a SIPP investment, you can always open another SIPP with a provider that does and there is not limit to the number of SIPPs you can have. You must www.executive-global.com

then consider the platform through which you want to buy your gold. HMRC states that any gold held in a SIPP must have a minimum purity of 995 thousandths. This means you will be holding gold bullion, as gold coins do not meet the purity level. You can either hold complete bars or shares thereof. You will not physically own the gold yourself, but instead it will be owned by the SIPP provider. There may be extra SIPP fees or admin charges for holding your gold in a pension, but the varies depending on your provider. All bullion must be securely vaulted, which means you will need to pay additional storage fees. There may also be a minimum investment level for SIPP gold.

ADVANTAGES One of the core advantages of a SIPP is the ability to manage and adjust your investments according to your risk tolerance and retirement goals. It is important to note that investing in a SIPP carries risks, as the value of investments may go up or down, and you may not get back the full amount you invested. As with any pension, it is important to make the most of the advantages that are available to you. Some important factors include: Paying In As Much As Possible - You may be tempted to start small and increase your

contributions later in your career, but increasing your investments now can make a big impact, thanks to the power of compounding returns.

Taking Full Advantage of Relief Options - Tax relief on SIPP contributions means that you can put £10 in your pension for a cost of only £8, providing an immediate return of 25%. Higher-rate tax payers are able to claim back a further 20-25% in tax relief on a Self Assessment Tax Return and you can also maximise returns by signing up for salary sacrifice contributions from your employer. This means that you will not pay National Insurance on the income being used to make contributions, leaving more money leftover to invest. The amount of SIPP tax relief you can receive depends on your income tax band. Tax relief rates are 20% for basic-rate taxpayers, 40% for higher-rate taxpayers (anyone earning over £50,270 per annum) and 45% for additional-rate taxpayers (anyone earning over £125,140) Increase Contributions in Line with Earnings - It’s a good idea to increase your SIPP contributions as you progress n your career. Pay rises and bonuses represent a great opportunity to do this without seeing a reduction in take-home pay.

Build a Diverse Portfolio - SIPPs provide the opportunity to invest in a wider set of stocks and shares than traditional pensions, and you are able to make the most of this flexibility. By building a diverse portfolio, you have the ability to manage your level o risk and adapt to changing circumstances in your own life and in the market.

LEGISLATION Pension laws in the UK are subject to regular updates and amendments by the Government. One of the first notable changes in recent years is autoenrolment. In 2012, the government introduced auto-enrolment, which requires employers to automatically enrol eligible employees into a workplace pension scheme and contribute to their pensions. Secondly, the State Pension Age has been gradually increasing; the current State Pension Age for both men and women is 66, but it is set to rise to 67 between 2026 and 2028, and then to 68 between 2037 and 2039.

Thirdly, in 2015, the government introduced pension freedoms, which gives individuals more flexibility in accessing their pension savings. This allows people to withdraw money from their defined contribution pension schemes from the age of 55, subject to certain tax rules. Finally, is the Lifetime Allowance (LTA) - which is the maximum amount of pension savings an individual can accumulate without facing additional tax charges.

It has been subject to changes over the years, with the current limit set at £1,073,100. However, the charge for breaching the LTA will be abolished entirely from April 2024.

PENSION ACCESSIBILITY SIPPS are aimed at people who are happy to make their own investment decisions. Investment value can go up or down and you could get back less than you initially invested. You can usually only access the money from age 55 (57 from 2028). EG Autumn-Winter 2023 •

23

CEOPROFILE

Danielle Vest

Founder & Chief Executive Officer, Preferred Cleaning Service, Inc

ELITE LUXURY CLEANERS Our special interview on Elite Luxury Cleaners with DANIELLE VEST, Founder & Chief Executive Officer of Preferred Cleaning Service, Inc, highlights the stellar contribution of one of America’s pre-eminent commercial cleaning firms with an unwavering commitment to delivering clients with the cleanest and most presentable business establishments. Executive Global gains an exclusive insight into what it takes to become the trusted and reliable cleaning solution for the luxury hospitality and commercial real estate industries.

Property brokerages like Compass, Sotheby’s Inte r n a ti on a l R ea lt y, Chr i sti e’s International Real Estate and Coldwell Banker regularly showcase 10,000+ sq. ft. palatial estates.

As Elite Luxury Cleaners, why may your company be a critical element in ensuring these homes look their absolute best at all times?

It might seem that when dealing with a vast DV Colicial Estate that requires a luxury presentation, there would be unique cleaning and showcasing methods necessary to make it stand out from other properties. However, the reality is that our systematic approach and the exceptional training we provide to our employees ensure that every property is presented in a luxury manner and at its absolute best at all times. We maintain standardised and replicable processes to guarantee the highest quality. In the marketing of a cleaning company, it’s crucial to communicate clearly about our processes and staffing. By emphasising that everything is standardised and replicable, clients can expect consistently high-quality service. This assurance comes from our commitment to using top-of-the-line tools and maintaining the highest standards at all times.

EG

How do the experiences of large commercial office, retail and construction cleaning, differ from that of industrial and warehouse EG

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• Productivity, Strategy, Profitability

cleaning, and what are the benefits of having a reliable firm serve as a ‘one stop-shop’ for a wide variety of commercial cleaning environments?

The main differences arise from the daily use DV of these spaces, necessitating an adaptable cleaning approach based on the time and level of usage. The type of cleaning required depends on the specific dirt or debris, and while the cleaning processes themselves may be similar across all sectors, what distinguishes them is how cleaners navigate through the space and determine the service requirements. What sets us apart from other companies is our diversity and our in-depth understanding of the quality standards for cleaning in various commercial sectors, including warehouses, factories, and medical facilities. Each sector has its unique cleaning equipment and high-quality cleaning materials to ensure the highest standards. We recognise the distinctions between commercial estates, warehouses, and industrial settings, and it is our diversity that makes us exceptional.

CEOPROFILE

Danielle Vest

Founder & Chief Executive Officer, Preferred Cleaning Service, Inc

Each sector has its unique cleaning equipment and high-quality cleaning materials to ensure the highest standards.

www.executive-global.com

Autumn-Winter 2023 •

25

CEOPROFILE

Danielle Vest

Founder & Chief Executive Officer, Preferred Cleaning Service, Inc

Giving back is an integral part of our core values, and I firmly believe that everyone, not just the successful, should contribute.

CV DANIELLE VEST BORN Washington, United States ALMA MATER The School of Life EXPERIENCE 2022 Founded Preferred Supplies, LLC, providing equipment to startup janitorial companies.

2022 Founded Company Work Force LLC. 2022 Vice President, RAL Homes, LLC. 2017 COO, Gwynvestment Properties.

2015 Offered services to locations all over the West Coast (Washington, Texas, California, Utah, Montana, Oregon).

2015 Began cleaning one of the largest Hilton Hotels in Texas.

2015 Founded Preferred Cleaning Service, Inc. in Olympia, WA 2013 Founded She Can Clean.

EXECUTIVE RECOMMENDATIONS

» PRODUCTIVITY

The team brings the success. Work together and grow together.

» STRATEGY

Strive to be the best and be empowered by your competitors.

» PROFITABILITY

We don’t just generate income, we save lives.

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You prioritise employee satisfaction, taking measures to retain hardworking and reliable staff. How significant of an impact does this have on the exemplary quality of service that has enabled you to emerge as one of the pre-eminent commercial cleaning firms in the nation?

This is a fantastic opportunity to address a DV common issue in the cleaning industry, which is the challenge of high turnover. At our company, we place a high priority on our hardworking and dependable staff. We understand that by taking good care of them and providing thorough training, we equip them to excel in their roles and, in turn, share their satisfaction and happiness with their job. This approach not only benefits our staff but also ensures client satisfaction, as our wellcared-for team is motivated to provide exceptional service.

EG

What are some of the ways in which your team coordinate to achieve optimal results for clients in a manner that other cleaning firms completely miss?

Communication is absolutely crucial. While DV many companies rely on emails and pictures to connect with their clients, we firmly believe in conducting walk-throughs and actively engaging with our clients. We encourage a collaborative approach, transforming the typical one-way communication into a meaningful dialogue. By meeting with our clients in person, we ensure that we understand and meet their needs to the best of our ability.

EG

What would you describe as the greatest challenges inherent in commercial construction cleaning and how you are able to remove the hassle of an otherwise troublesome task?

When our company first began, we quickly DV realised that every General Contractor (GC) has unique cleaning needs within their work sectors. To best support them, we’ve learned to anticipate their requirements and proactively provide solutions. Whether they need additional staff on-site, more cleaning materials, or any unexpected help to maintain our cleaning quality, we aim to be ready. Sometimes, it’s as straightforward as following the scope of work within the set deadline or completing it ahead of schedule. Thanks to our standardised processes, it

• Productivity, Strategy, Profitability

EG

doesn’t matter where they start from because we can adapt to various scenarios and achieve the expected outcome.

You are also an award-winning company, receiving notable accolades for your work.

What kind of technologies do you employ that distinguishes a successful elite luxury cleaning firm like yours from that of the ordinary cleaning company in this industry?

The influence of technology, especially DV robotics and AI, is substantial in the cleaning industry, and in many other industries as well. The rapid pace of technological advancements means we need to be cautious about choosing the right, up-to-date solutions. I’ve taken it upon myself to learn from experts in the field, delving into various factors to deeply understand which technologies genuinely contribute to industry transformation and which are merely temporary trends.

EG

Mentorship is also very important. What would you say to encourage the next generation of young female entrepreneurs who may have an eye for business?

In the field of Manfields, education often DV involves trial and error. I firmly believe that knowledge is empowering. It’s essential to select your niche and immerse yourself in it. Engage with podcasts, attend networking events, seek guidance from mentors, and surround yourself with individuals you admire. Remember not to be the smartest person in the room. If you find yourself in that position, it’s time to seek out another group or community where you can continue to grow. Avoid getting trapped in your own ego and prioritise personal and professional development.

EG

As a company synonymous with trust and excellence in the commercial cleaning industry for over 20 years, how may your discipline and well-established track record save money and improve bottom-line profitability for future clients?

Unexpected costs can be the most expensive DV challenge for companies. Our approach is to proactively manage and create predictable outcomes, ensuring our clients never face unexpected surprises. Over our extended partnership, we’ve honed our ability to anticipate and standardise all our processes. This allows us EG

CEOPROFILE

Danielle Vest

Founder & Chief Executive Officer, Preferred Cleaning Service, Inc

A rewarding way to guarantee business growth is giving back. Having partnered with WorldVison to donate part of your profits to the benefit of children, why is it so important for successful people to give back to the community?

Giving back is an integral part of our core DV values, and I firmly believe that everyone, not just the successful, should contribute. When our company and team engage in giving back, it fosters a sense of community, making work more meaningful.

It’s during these times that we learn about each other, discovering personal stories like one of our employees’ experiences with a tragic event in Venezuela.We decided to give back by allocating a portion of every call that comes through our system to support Venezuela. We’ve partnered with WorldVision, and this commitment sets us apart from other companies.

EG

How did your humble beginnings cleaning mess halls and cabins many years ago, prepare you to succeed at the height of the commercial cleaning industry today, with a successful company now operating across multiple states with hundreds of employees?

Hard work has taught me a valuable lesson DV – it’s not just about the effort; it can also be genuinely enjoyable. I find it fulfilling, and that’s what motivated me to take the leap. Moreover, I firmly believe in leading by example. I never ask my employees to do something I haven’t personally done and understood intimately. This approach has been a key factor in my success. It ensures there’s no division between me and the individuals who do the cleaning work within the company. I’ve been in their shoes and comprehended what it entails. I won’t assign someone a job that I haven’t done or wouldn’t do myself, fostering a strong sense of unity and teamwork within the company.

EG

ABOUT DANIELLE VEST Danielle Vest is CEO of Preferred Cleaning Service, Inc. and has been working in the commercial cleaning industry for over 30 years. With a commitment to quality, the serial entrepreneur has expanded the company across five states with over 220 employees, and has emerged to become the trusted and reliable choice for the luxury hospitality and commercial real estate industries.

ACCOMPLISHMENTS

» Highest record for quality assurance for

Cleanest Record of Hotels in the US (and we still hold the highest record to this day).

» Preferred Cleaning Service, Inc. named among 50 most admired companies of the year 2023.

» Awarded Commercial Cleaning Contractor of the Year for the US in Build Magazine.

» Featured in Manufacturing Outlook magazine Top 10 Industrial Cleaning Service Providers.

» Featured in CIO Bulletin Magazine – under Five Best Women in the Women’s Awards.

» Supported the drilling of a well for clean drinking water with WorldVision.

» First Hilton Hotel in the US to go green and the first large hotel in Houston to go green.

www.executive-global.com

to foresee potential issues and address them before they escalate. Having experience in both the trades and acquisitions with my other company, I grasp the financial implications at a deeper level. We emphasise being proactive rather than reactive, because reacting to problems often leads to unnecessary expenditures. In the cleaning sector, we aim to stay ahead, preventing additional costs.

Why is it increasingly important in this day and age for medical professionals to recruit a dependable firm like yours when it comes to sanitisation and cleaning of medical facilities?

If the pandemic has taught us anything, it’s DV the vital importance of medical professionals being able to rely on us and our ability to ensure their environments are thoroughly sanitised and ready for their next procedures. The more efficiently we can enter, perform our cleaning duties, and exit in a reliable and dependable manner, the more quickly medical professionals can access the facilities and provide their services on time.

EG

As the head of an award-winning company with a stellar reputation, what can large commercial real estate owners, luxury hoteliers, medical professionals and luxury real estate owners look forward to when working with you?

When working with me, you can look DV forward to several things. Firstly, you can expect the deployment of the highest standards and best-in-class processes. I’m dedicated to ensuring that when I understand my job thoroughly, it enables everyone around me to perform at their best. I don’t do this for my own ego but to help others excel in the industry. I aim to be invisible in the process, as that’s a sign of a job well done.

You can rely on me to handle everything seamlessly, so you don’t have to think about it. Ultimately, my focus is on others, not myself. If I’ve done my job correctly, you won’t even notice I’m there. EG EG

For further information, please visit: www.preferredcleaningsvc.com Autumn-Winter 2023 •

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FINANCE

The Morgan Report

What Market Conditions Will It Take For Trust To Be Restored In Silver?

Before moving into silver, we must look at the big picture and that is what really comprises the financial and monetary systems?

Article by

David Morgan PUBLISHER & CEO, THE MORGAN REPORT

imply, it is trust, or as I prefer confidence.

The most trusted asset in the world is the United States debt market, better known as US Treasuries. The idea being that the debt issued on the backs of U.S. taxpayers can be trusted as the most secure asset. But let us be real! It is mathematically IMPOSSIBLE to pay the debt back. At some point the interest alone will not be able to be paid back.

At current conditions, everyone in the United States needs to pay $100,000 to pay off the debt owed to the Federal Reserve Bank, which loaned the currency to the U.S. government. So what happens?

Interest rates move higher to keep the suckers in the game and everyone that can- moves their new funds to the short end of the yield curve to stay “safe”.

The Bond markets, U.S. and other countries, and corporations are feeling the pressure, and many know their days of being solvent are ending.

This will cause a great contraction in the physical economy. This is already easily recognised by seeing how many retail chains are going into bankruptcy.

Not everyone can escape what lies ahead, in fact very few will. The shift will start subtly and

S

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gain momentum. Witness gold being bought by Central Banks at a record-breaking pace last year and continuing this year. If any part of the system knows what is really going on it is the Central Banks. Think about it.

A silver bull market will only happen when trust and confidence return to the metal. The number of false starts by gold and silver in recent years has compromised that confidence in recent years – a sentiment that is arguably derived from the underlying fear of market manipulation by financial institutions.

KEY FACTORS Whilst this is a bummer in the short term for precious metals investors, it does beg the question: What market conditions will it take for trust to be restored in silver? Moreover, when is it likely that these market conditions will be arrived upon?

Essentially, there are two key factors to bear in mind. The first relates to the monetary demand side of silver and the second relates to the industrial demand side, both are contingent on the silver supply. By drawing on the excellent research of our friends at Incrementum AG, this article will walk through both factors, so as to restore some muchneeded optimism in the ranks of those that know confidence in the debt markets is waning rapidly.

PART 1: The restoration of trust in gold, by extension, as the catalyst for increasing trust in silver.

• Productivity, Strategy, Profitability

It is a known fact that the relationship between silver and gold is one of high correlation. Since the connection to the gold standard was severed in 1971, this correlation has ranged between 0.6-0.8, barring the anomaly of 1986-87.

In short, this correlation boils down to silver’s role as a monetary metal. Today, 54% of silver demand is industrial, there is still some 25% of total silver demand from investment. Throughout history, the monetary aspect of was higher, however the 1873 Coinage Act marked the beginning of the end for silver as legal tender.

Despite this, the monetary element of silver remains. This is shown by silver’s propensity to outperform gold in 5 of the last 6 of its bull markets since 1967-68 – a phenomenon that is born out of the gold silver ratio becoming overly stretched, to the point where silver’s undervaluation relative to gold creates the incentive for investment.

When we look at the reasons why gold experienced these bull markets, inflation is always amongst the top culprits. This is particularly true for the gold bull market in the 1970s, where a rapid increase in the money supply saw three successive

FINANCE

The Morgan Report Photo: Lubor Zelinka / Shutterstock.com

waves of inflation wreak havoc on the purchasing power of our hard-earned dollars.

Today, in a similar fashion to the 1970s period, inflation stands ready to rear its ugly head once again in the form of a second wave. With its return, gold is poised to rise, and with it, will be silver.

As for why this will happen, the belated consequences of government spending from covid-19, combined with the present consequences of the defence spending Ukraine and Israel, are yet to properly incubate within the system. Unfortunately, this “lagging effect” is notoriously underestimated by our incompetent central bankers.

MORE FUNDAMENTALS For example, between March and November of 2020, the measure of broad-based money supply, M2, increased abruptly by 24%. Shockingly, the money supply surge in 2020 exceeded any in the one-and-a-half centuries for which we have data.

Moreover, whilst the true scale of the defence spending is yet to be determined in the Middle East, the U.S has already committed about $44 billion in direct security assistance for the war in

www.executive-global.com

PEOPLE FAIL TO REALISE THAT THE WORLD IS DEPENDENT ON HYDROCARBON-BASED ENERGY SOURCES FOR AROUND 80% OF TOTAL ENERGY SUPPLY. Ukraine. It is policies such as this that have resulted in the US Government’s $34 trillion debt burden, which of course, is becomingly increasingly costly to service thanks to the interest rates that continue to edge higher.

Frankly, this game can only be played for so long. At some point, the Fed will be forced to make the tough decision to cut interest rates, which will be pressured into doing so by businesses and banks who can’t bear any further increases in the cost of borrowing.

PART 2: The inevitable recognition of silver’s critical role in the green energy transition as the foundation for the restoration of trust in silver.

People fail to realise that the world is dependent on hydrocarbon-based energy sources for around 80% of total energy supply. Right or wrong, outlawing investments in the production of oil and gas, as has been done by the likes of the capital rich Net Zero Banking Alliance, means that alternative energy sources must be sought.

Trust in silver, in the industrial sense, will be restored when this realisation sets in. This is because

of silver’s considerable usage in solar panels – a demand category that accounted for 13% of total silver demand in 2021, and that grew 28% year on year in 2022, according to the World Silver Survey 2023.

Interestingly, this category of silver demand is poised to grow further soon. This is because higher silver-loaded HJT and TOPCON solar panels are set to displace the lower silver-loaded PERC solar cells by 2025, taking a 50% share of the market.

Consequently, the improved efficiency of these solar panels will go a long way in facilitating mass adoption of solar panels, especially with the rollout of the U.S Inflation Reduction Act, which includes a bill to increase the Federal Income Tax Credit for solar projects to 30% until 2032.

Of course, there will be multiple forms of energy sources that benefit. Nuclear, hydrogen, and even oil and gas will benefit as governments scramble for cheap sources of energy, in their attempts to reverse the consequence of their “falling asleep at the wheel” moment, regarding their hasty clamp down on hydrocarbons.

Clearly, silver industrial demand is certain to benefit as this move into solar PV takes place. In doing so, a floor will be created to lessen the extent of the silver price downside, which will help bolster the restoration of trust in silver. Importantly, we may have to wait until a recession has passed before this effect materialises in full.

PART 3: The exploitation of silver supply to determine the extent to which trust is restored in silver.

By virtue of the previous demand drivers, the continued exhaustion of an already depleted silver supply will be the final piece in the puzzle, so as to restore trust in silver. According to the Silver Institute’s World Silver Survey 2023, which was released in April 2023, the silver market saw what may well have been the largest deficit on record. As part of their comments on this decline, the Silver Institute writes: “To put this into perspective, it is equivalent to more than half of annual mine production, and also more than half of the inventories held in London vaults offering custodian services, as reported by the LBMA”.

Therefore, if either of the above demand drivers come close to fruition, this supply looks vulnerable to exploitation. This is especially prescient, as the consensus amongst industry experts is an upward revision in silver demand, and a stagnation of silver supply.

Evidently, the conditions for trust to be restored in silver involve multiple variables. However, as the options start to narrow for the Fed, and as the realisation of an energy crisis starts to hit home, the restoration of confidence in silver could be just around the corner.

It boils down to a trust in silver or a trust in Government. In all cases throughout all of recorded history the choice is clear, silver wins 100 percent of the time. Yet, most people will learn this FACT after the collapse of the current system. “Those who do not learn history are doomed to repeat it.” EG

For further information, please visit: www.TheMorganReport.coom Autumn-Winter 2023 •

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FINANCE

Matterhorn Asset Manangement AG Photo: Bjoern Wylezich / Shutterstock.com

History’s Sad Lessons and Gold’s Last, Dark Laugh Throughout history, whenever one nation saw its borders being approached or defended with rows of horses, cannons, troops and tents of a neighbouring army, such movement clearly suggested a major “uh-oh event” was in motion.

Article by

Article by

FOUNDER, MATTERHORN ASSET MANAGEMENT AG

PARTNER, MATTERHORN ASSET MANAGEMENT AG

Egon Von Greyerz

n short, nations were preparing for imminent change. Moving from military metaphor to current financial reality, the very same pattern of nations, bond markets and central banks prepping for “uh-oh” is undeniably in play.

Ever since the myopic weaponisation of the USD in the wake of backfiring sanctions against Russia in early 2022, the de-dollarisation process, combined with the now obvious and steady rise of the BRICS+ alliances, is a clear sign of financial “troop movements” at the border as the USD approaches its “uh-oh” moment. The world is gradually shifting form a USD and UST-driven mono-polar system toward a multi-polar and multi-currency new normal, all driven by increasing distrust for a weaponised USD and an overly indebted Uncle Sam. The following chart explains the recordbreaking tactical moves (2022-2023) by global central banks (especially in the East) to dump USTs while simultaneously stacking physical gold.

Simply stated: The financial troops are in motion across our borders. It’s plain to see, and it’s plain to see why.

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THE WORLD IS CATCHING ON: AMERICA IS BROKE With global debt well past $320T, and with combined US public, corporate and household debt moving at warp speed toward $100T, most of our financial and global “generals”—from South America to Asia—are seeing what many pundits refuse to see, namely: The world is broke and the US is even more so.

Of course, those who are broke tend to have bad credit and little credibility. Uncle Sam is no exception, and his IOU, the once globally-revered UST, is nothing more than a declining asset from a junk credit. This explains the steady dumping of USTs around the globe in favour of that barbarous relic, physical gold.

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Matthew Piepenburg

But as “junky” as the recently Fitch-downgraded UST may be, it is still measured by the world reserve currency, which means despite having the balance sheet of any typical and debt-soaked banana republic, America is not just any banana republic. Stated more simply, the USD and the US IOU (i.e., sovereign bond market) won’t be going down easily nor overnight. But down it is going, right before our watering eyes.

THE US TREASURY BOND: UNLOVED, UNWANTED AND IN NEED OF A BAILOUT In addition to being weaponised and hence distrusted, the UST is suffering from a public and embarrassing mis-match of supply and demand.

Since 2014, foreigners have been net sellers of American IOUs. This, of course, means demand for the UST is sinking, which places mathematically downward pressure on its pricing and hence upward pressure on its yields.

Adding insult to injury, at the very same time that demand for US Treasuries is tanking, the supply of Uncle Sam’s desperate IOUs (to pay for staggering entitlement, military and other deficit spending) is rising.

ULTIMATELY, EVERY DEBTSTRAPPED EMPIRE, NATION OR REGIME IS FORCED TO MAKE A CHOICE BETWEEN SAVING ITS DEBT-MARKET OR SACRIFICING ITS CURRENCY

• Productivity, Strategy, Profitability

This supply force, places even further downward pressure on US sovereign bonds and hence further upward pressure on yields. But rising yields in a debtbubble is like a match in a gas station. Things start to blow to pieces, from UK Gilts and US banks to Main Street businesses and Wall Street bond desks.

FROM ‘‘HIGHER FOR LONGER’’ TO ‘‘PAUSING FOR LONGER’’ When you then add Powell’s recent “higher for longer” policy on top of this open supply and demand disaster, it’s so easy to see why US Treasuries are tanking and yields on the US 10Y have recently gone above the 5% marker. Of course, rising bond yields, which the Fed realises it can’t really control, means rising interest rates and hence rising interest expense—not just for the hundreds of small businesses filing for bankruptcy at double last year’s rates, but also for Uncle Sam. Interest expenses on US public debt is now hitting the $1T mark, which Uncle Sam can’t afford. This likely explains why Powell’s higherfor-longer rhetoric is slowly morphing toward “pausing for longer” as the Fed begins to see what we’ve been warning for months: It’s stuck with no good options left.

TRAPPED BETWEEN BAD SCENARIOS America, having lived for decades beyond its means in twin deficits, unprecedented debt levels,

FINANCE

Matterhorn Asset Manangement AG

and a -65% Net Foreign Investment Position, is broke. Furthermore, there’s simply not enough GDP or tax receipts to cover a debt to GDP ratio of 120% and 6% deficit to GDP bar tab.

As shown in the charts, there is not enough natural demand for America’s increasingly desperate IOUs. But given that debt (and trillions and trillions of IOUs per year) is the rotten wind beneath the so-called wings of American exceptionalism, Powell, like all economicschallenged politicos (left and right in DC), recognises that this debt party cannot be allowed to come to end. There’s simply too much at stake.

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SAVING THE UNWORTHY In other words, there needs to be some buyer(s) of these increasingly expensive USTs (which Powell’s “war against inflation” made even more expensive), because debt –and hence US sovereign bonds— are the very bedrock of the US financial model—from risk asset markets and government spending to pension funds and annual tax (capital gain) receipts. Or stated even more simply : The bond market is too big to fail. It can’t fail. Which means the polic y makers will need to save it.

Which means, as warned for years leading up to this seminal moment, the FOMC will have to create more synthetic money out of thin air to support this otherwise zombie-fied bond market.

Which means that money, previously back-doored in the form of BTFP and TGA-account liquidity, will require another Fed-pivot to more dovish and inherently inflationary QE after months of hawkish, and market destroying, QT. Which means Powell’s war on inflation will end, as equally warned, in more, not less inflation, in order for Uncle Sam to inflate away his otherwise unsustainable debt problem/bubble. This, sadly, is nothing new under the sun.

Ultimately, every debt-strapped empire, nation or regime is forced to make a choice between saving its debt-market or sacrificing its currency.

THE LESSER OF TWO EVILS FOR DEBT TRAPPED SOVEREIGNS In the end, it is always the currency that is sacrificed, and hence it always the currency bubble which is the last to pop. Thus, and despite being the best horse in the global glue factory, and despite

being the world reserve currency, and despite being the key currency in Euro Dollar and derivative markets (the “milkshake theory of perpetual USD demand), even the USD will get debased, inflated and hence weaker in the face of a debt reality that is even stronger than the once “immortal” greenback.

Again, we are not the only ones who see this.

SO EASY TO SEE The BRICS+ nations see it; the global bond markets see it; a rising list of UST-dumping and gold-stacking central banks see it. Even Jamie Dimon at JP Morgan sees it: America, along with its bond and currency markets, is heading downwards not upwards. Of course, informed, far-sighted and wealth-preservation-focused investors also see this.

They have always seen it. They’ve known for years that fiat money always reverts to its zero-mean.

SMARTER THAN THE FED They’ve known that the currency-debasement process is slow, yet steady, and they know that central banks like the Fed have been committing crimes against real money ever since 1971 saw the death of a gold chaperone on the now over-created USD. That is why individual and sophisticated investors, regardless of where or how their paper wealth was made, have always become their own “central banks” by insuring that same paper wealth with their own “gold-backed” reserves—i.e., their own physical gold.

In short, rather than “fight the Fed,” a smart minority of investors just had to be “smarter than the Fed.” This explains why gold is rising despite headline claims of victory over inflation, positive real rates or even a relatively strong (yet waning) DXY. Sophisticated gold investors have seen this currency end-game long before the policy-makers will confess it.

All we can do now is watch this sad yet oh-sopredictable game play itself out among a litany of excuses, scape-goats and platitudes. The math, however, is simple. Too much debt and too little growth means more debt paid for with increasingly debased currencies, a pattern for which physical gold always gets the last, dark laugh. EG

For further information, please visit: www.goldswitzerland.com

Autumn-Winter 2023 •

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FINANCE

Monetary Policy

Margaret Thatcher and Central Banks - Why The Iron Lady Was Right Margaret Thatcher was a Conservative politician serving as Prime Minister of the United Kingdom from 1979 to 1990. After being questioned in Parliament as to whether she would continue her own personal fight against the single currency (which has later since become the Euro) and an independent central bank after leaving office, a humorous interjection by MP Dennis Skinner that: ‘No, she’s going to be the Governor!’ was met with rapturous laughter, writes Shannon Berkley.

What a good idea!’ Thatcher responded, to ecstatic bursts of laughter by Members of Parliament. ‘I hadn’t thought of it…… but if I were, there’d be no European Central Bank accountable to no-one, least of all to national parliament. Because the point of that kind of European Central Bank is no democracy, taking powers away from every single parliament, and being able to have a single currency and a monetary policy and an interest rate, which takes all political power away from us!’ She remarked.

Thatcherism is the political and economic ideology advanced by the former Prime Minister which attempted to promote low inflation, limited government, free markets, low taxes, individuality and self-determination. Consequently, Margaret Thatcher was certainly no friend of central bankers, fearing that independent central banks would serve the interests of their own clients rather than those of the wider economy. She prevented the Bank of England from controlling interest rates to the dismay of her chancellors and her last speech criticising the very notion of a European Central Bank before its inception, clearly illustrates the remarkable dangers of bestowing extraordinary powers upon such an institution, particularly when juxtaposed with contemporary trends such as global debt monetisation, zero and negative interest rate policy, yield curve control, MMT, as well as the mad push for Digital IDs and Central Bank Digital Currencies.

In 1990, Margaret Thatcher warned that the Euro would effectively end European democracy.

Maastricht, Nice, Lisbon and respective treaties later, EU nation states evidently have no control over their monetary policy, with national central banks merely marching to the tune of an ECB pied-piper, shaping policy from Brusssels.

It appears central banks today are in a race towards the finish line in their construction of a

‘

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Photo: mark reinstein / Shutterstock.com

...MARGARET THATCHER WAS CERTAINLY NO FRIEND OF CENTRAL BANKERS, FEARING THAT INDEPENDENT CENTRAL BANKS WOULD SERVE THE INTERESTS OF THEIR OWN CLIENTS...

• Productivity, Strategy, Profitability

digital gulag, that will permanently, irrevocably and terminally throttle the monetary independence, autonomy, and sovereignty of all citizens and sound the death knell for the wider economy.

This is by introducing something far worse than a supranational currency that is issued top-down and shared amongst powerless EU member states who already have no decision, control or influence over their own monetary affairs- and that is the complete digitisation of that supranational currency, and removal of physical banknotes, which would permanently remove the ability to do anything without central bank approval, much less vote for representative government! Ultimately, with the benefit of hindsight thirty three years on- it appears the Iron Lady was right after all. EG

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LEGAL & ADVOCACY

Gomez Tomiczek International

Unlocking International Access The Panama Travel Passport Have you ever wondered if a single document could open the doors to a world of opportunity, providing not only a sense of security, but also unprecedented access and international mobility? Well, wonder no more, because the answer is a resounding yes! And that unique document comes in the form of the Panama Travel Passport.

Article by

Marie Gomez-Tomiczek PARTNER, GOMEZ-TOMICZEK INTERNATIONAL

n an age defined by borderless business, global investment and the allure of spontaneous travel, this passport is more than just a travel document; it’s the key that unlocks a world of privilege and foresight. The Panama Travel Passport grants its holders a unique freedom: visa-free access to over 142 countries around the world. For business leaders, global entrepreneurs, and avid travellers, this document streamlines travel by eliminating the complexities of securing visas. Beyond its convenience, the Panama Travel Passport doubles as a contingency plan, providing security in today’s unpredictable world.

This article explores the intriguing world of this fascinating opportunity. As you delve deeper into its intricate details, you’ll discover its remarkable benefits. We’ll navigate through the process of acquiring one and discover its far-reaching implications in the realm of global investing and wealth management.

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A GLIMPSE INTO THE PANAMA TRAVEL PASSPORT: WHAT IS IT EXACTLY? Picture this: The Panama Travel Passport, also known as the Panama Private Retiree Investor Visa, is like a treasure map for individuals of high net worth who aren’t Panamanian citizens. It may look like a standard passport, but it harbours a secret: an additional line revealing the holder’s original citizenship. Whether your origins are from China, Venezuela, India or any other corner of the world, this passport doesn’t transform you into a

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citizen of Panama, but it bestows travel privileges equivalent to those of Panamanian citizens. This, in essence, grants you access to numerous visafree destinations while allowing you to keep your existing citizenship, with no worries about dual citizenship troubles.

EXPANDING HORIZONS: BENEFITS AND HOW TO USE IT As you dig deeper into the Panama Travel Passport, you’ll unearth a world of advantages.

This remarkable document, supported by Panama’s innovative immigration policies, flings open the doors to a realm of international privileges and opportunities. The key benefits include: Visa-Free Access - Think of this passport as your golden ticket to more than 142 countries worldwide, making global travel a breeze. For seasoned jet-setters who appreciate the convenience of crossing borders with ease, this passport is the key to new possibilities.

Preservation of Your Existing Citizenship One of the passport’s significant advantages is that it doesn’t tamper with your current citizenship.

Since the Panama Travel Passport does not make you a Panamanian citizen you can maintain your original nationality, avoiding the complexities and conflicts associated with dual citizenship. The process is straightforward and can be completed in a matter of weeks without the need for lengthy naturalisation procedures, costly real estate investments, language certifications, additional tests or interviews.

Emergency Exit Strategy - In a world of geopolitical uncertainty, the Panama Travel Passport becomes a valuable contingency plan.

It safeguards your journey through unforeseen challenges and provides a solid backup when the need arises, including access to improved alternatives for healthcare and education.

Global Investment Opportunities - Possessing

• Productivity, Strategy, Profitability

a Panama Travel Passport isn’t just about hassle-free travel; it’s a testament to your status and ability.

More than that, it gives you a unique opportunity to capitalise on global investment trends, access Panama’s favourable tax laws, and foster a world of financial growth.

HOW TO OBTAN YOUR PANAMA TRAVEL PASSPORT? Acquiring a Panama Travel Passport may sound complex, but it’s a well-defined process tailored for those with financial prowess. The journey consists of several steps: Private Retiree Investor Visa - Your adventure begins when you apply for the Private Retiree Investor Visa. This visa grants you a five-year residency in Panama, with the option to renew for another five years. Once your application for the Private Retiree Investor Visa is successfully approved, you can immediately obtain the Panama Travel Passport. To qualify for the Private Retiree Investor Visa, you must have a clean criminal record and proof of investment in Panama (see below), among other requirements. It is mandatory in Panama to submit all applications through a Panamanian lawyer who will prepare your file in advance and advise you on all necessary documents.

There is no age limit to qualify for the visa and you can even include your spouse and children (up to 25 years old) in your application.

LEGAL & ADVOCACY

Gomez Tomiczek International channels for capital allocation, and this passport offers precisely that. As the passport opens doors to more than 142 countries, it also serves as a gateway to international financial markets. With this document in hand, holders can diversify their investment portfolios, capitalise on emerging trends, and tap into promising markets worldwide.

The ability to hold assets and investments in various countries fosters a sense of financial security and access to a world of opportunities.

Photo: Cavan-Images / Shutterstock.com

THE MINIMUM INVESTMENT AMOUNT MAY VARY DEPENDING ON THE CURRENT INTEREST RATE. AS OF NOVEMBER 2023, THE REQUIRED INVESTMENT IS APPROXIMATELY $264,500...

Financial Commitment - To prove your commitment, you’ll need to invest in a Certificate of Deposit (CD) for five years in one of Panama’s stateowned banks, either the National Bank of Panama or the National Savings Bank. This CD must earn a minimum monthly interest of $850 USD. The minimum investment amount may vary depending on the current interest rate. As of November 2023, the required investment is approximately $264,500 USD. This investment allows you to ride the wave of Panama’s strong financial system and favourable business environment.

Maintaining the Investment - To ensure the www.executive-global.com

ongoing validity of your Panama Travel Passport, it is essential to uphold your CD investment for the entire five-year duration. Early withdrawal of funds may lead to the revocation of your passport.

However, upon completing the five-year term, you have the choice to withdraw both your initial investment and the accrued interest. If you wish to retain and renew your Passport for another five years, maintaining the original investment is required, but you gain the flexibility to withdraw the earned interest. It’s worth noting that according to Panama’s tax code, all interest earned from bank accounts, time deposits, and other banking services is non-taxable in Panama.

Ready for Your Next Adventure? - The Panama Travel Passport is more than just a travel document; it’s the gateway to a world of opportunity. It serves as a powerful contingency plan, a means of preserving your current citizenship, and a symbol of access that reflects your status in the global landscape. In an era of global change, this passport embodies the intersection of privilege, security, and opportunity.

EMBRACING GLOBAL INVESTMENT OPPORTUNITIES One lesser-known but highly significant aspect of the Panama Travel Passport is the freedom it provides for exploring global investment opportunities. In the complex world of international finance, investors often seek secure and efficient

THE VERSATILITY OF THE PANAMA TRAVEL PASSPORT What makes the Panama Travel Passport truly exceptional is its versatility. It caters to a diverse range of prospects, each with unique motivations and requirements. Here are a few examples: Business Leaders - For business leaders, the passport facilitates seamless international travel and expansion opportunities. It enables executives to explore new markets, establish global partnerships, and elevate their enterprises to international heights.

Seasoned Travellers - Individuals with a passion for global exploration will find the Panama Travel Passport to be an invaluable companion.

It simplifies travel logistics and enhances the experience by eliminating the need for visa applications.

Plan B Seekers - In an era of geopolitical uncertainty, the need for a contingency plan has never been greater. Individuals who prioritise a stable Plan B can rely on the Panama Travel Passport to access safe havens in times of crisis and enjoy a second residence in Panama for themselves and their family if necessary.

International Investors - Those who wish to broaden their investment horizons will find this passport to be an indispensable tool. It enables the acquisition and management of assets in multiple countries, providing a robust framework for international wealth management.

International Privileges - The Panama Travel Passport reflects global mobility, convenience, and an appreciation for high-quality experiences.

Whether it’s a last-minute getaway to a tropical paradise, a critical business meeting across the globe, or safeguarding wealth through international investments, this passport plays a pivotal role.

THE FUTURE BECKONS In an era where financial influence intersects with global citizenship, the Panama Travel Passport is a symbol of privilege and wisdom. It embodies the fusion of global access and commitment to a secure future. As geopolitical tides continue to shift, and investment landscapes evolve, this passport opens doors to a world of opportunities.

It’s not just a document; it’s a testament to foresight and preparation. As we gaze toward the future, one thing is certain—the Panama Travel Passport will continue to be a symbol of versatility, privilege, and its vital importance in an ever-changing world. EG

For further information, please visit: www.gomitom.com Autumn-Winter 2023 •

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LEGAL & ADVOCACY

Private Client Legislation

What is Private Client Law? The realm of private client work, though not a standalone legal practice, represents a unique and dynamic intersection of various legal domains, reports Shannon Berkley. rivate client law is practised at law firms of all sizes. High street and local solicitors focus on work like wills, trusts and probate for members of the public. Regional, city and specialist firms tend to act for higher net worth individuals, and families and estates, particularly on tax planning and wealth management.

We will provide a comparative analysis of private client law across different jurisdictions, including the UK, Bermuda, Guernsey, the Cayman Islands, and the British Virgin Islands (BVI). Additionally we will look at the legislative landscape, advantages and challenges, key law firms and strategies for staying abreast of legal changes, alongside insights into what it takes to be a successful private client lawyer and the reasons behind choosing this specialisation.

Private client law primarily caters to the legal needs of wealthy individuals and families, encompassing areas like tax, trusts, estate management, and other financial instruments.

Unlike M&A law, which deals with corporate acquisitions and mergers, or criminal law, focused on legal statutes and penalties, private client law is more personalised, dealing with individual assets, estate planning, and wealth management. In contrast to intellectual property law’s focus on protecting creative and intellectual assets, private client law is about managing and preserving tangible wealth.

Each jurisdiction offers a unique legal framework for private client law. For instance, the UK’s legal system provides a well-established and comprehensive approach to estate and succession planning. Bermuda, known for its favourable tax regime, is attractive for wealth structuring and asset protection. Guernsey, the Cayman Islands, and

P

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the BVI, with their flexible trust laws and privacy benefits, are popular choices for high net worth individuals (HNWIs) looking for efficient wealth management solutions.

Expanding on the analysis of private client law across various jurisdictions, it is important to look into the legislative nuances, comparative experiences, and the unique advantages and disadvantages present in the UK, Bermuda, Guernsey, the Cayman Islands, and the British Virgin Islands (BVI). Our comparison not only highlights the distinct legal frameworks but also provides insights into the strategic decisions made by high net worth individuals (HNWIs) and their advisors in these regions.

UNITED KINGDOM The UK’s legal system for private client law is known for its robustness and comprehensive nature.

The country’s inheritance tax regime, often a key consideration in estate planning, is characterised

GUERNSEY’S PRIVATE CLIENT LAW IS CHARACTERISED BY ITS FLEXIBLE TRUST LAWS, WHICH HAVE MADE IT A POPULAR CHOICE FOR ASSET PROTECTION AND ESTATE PLANNING.

• Productivity, Strategy, Profitability

by its progressive rates and allowances. Recent reforms have introduced the residence nil-rate band, providing an additional threshold before inheritance tax applies, particularly beneficial for individuals passing on their main residence to direct descendants.

Apart from tax considerations, the UK legal framework offers a well-established system for trusts and estates, making it a preferred jurisdiction for succession planning. However, one of the challenges in the UK is the complexity and frequent changes in tax laws, requiring constant vigilance and adaptation from private client lawyers and their clients.

BERMUDA Bermuda stands out for its favourable tax regime, with no inheritance, capital gains, or income taxes on trusts. This makes it an attractive jurisdiction for HNWIs looking to structure their wealth efficiently. Bermuda’s legal system is based on English common law, providing a familiar legal foundation for many international clients.

The country has developed a niche in creating innovative financial instruments, such as private trust companies and purpose trusts, which offer flexibility and control in wealth management.

LEGAL & ADVOCACY

Private Client Legislation transparency and compliance with international tax regulations. For example, the UK’s recent inheritance tax reforms and the Cayman Islands’ amendments to trust laws demonstrate an evolving legal landscape. High-profile cases involving celebrities and public figures often highlight the complexities and nuances of private client law, offering insights into the practical application of these legal principles.

ADVANTAGES AND CHALLENGES One of the primary advantages of specialising in private client law in these jurisdictions is the opportunity to work with diverse legal systems and complex international cases. However, this specialisation also involves challenges, such as staying updated with rapidly changing international tax laws and navigating the legal intricacies of different jurisdictions.

WEALTH MANAGEMENT AND SUCCESSION PLANNING Effective estate and succession planning are critical components of private client law. This involves drafting wills and trusts, managing probate processes, and ensuring efficient transfer of assets to future generations. Wealth management, a key aspect of private client law, focuses on preserving and growing wealth while minimising tax liabilities.

Photo: Air Images / Shutterstock.com

However, the challenge in Bermuda lies in its susceptibility to international pressure on tax transparency and compliance, which can impact the legislative landscape.

GUERNSEY Guernsey’s private client law is characterised by its flexible trust laws, which have made it a popular choice for asset protection and estate planning.

The jurisdiction offers a variety of trusts, including discretionary, accumulation and maintenance, and settlor-interested trusts, providing a range of options for HNWIs. One of Guernsey’s advantages is its political stability and strong legal framework, which provide a sense of security for wealth structuring. However, as with other offshore jurisdictions, Guernsey faces challenges related to the global push towards greater transparency and information exchange in tax matters.

CAYMAN ISLANDS The Cayman Islands are renowned for their tax-neutral environment, making them a prime choice for international wealth structuring. The jurisdiction does not impose direct taxes on trusts, providing significant advantages for wealth www.executive-global.com

preservation and growth.

Additionally, the Cayman Islands offer a high degree of privacy in financial affairs, a factor highly valued by many HNWIs. However, this emphasis on privacy can be a double-edged sword, as it also attracts scrutiny from international regulatory bodies focused on combating tax evasion and money laundering.

BRITISH VIRGNN ISLANDS (BVI) The BVI is known for its flexible and modern trust laws, which cater to a wide range of private client needs. The jurisdiction offers unique structures like VISTA trusts, designed to allow for greater control over company shares held within a trust.

The BVI’s legal system is based on English common law, providing a familiar and reliable legal environment for international clients. However, the BVI also faces similar challenges as other offshore jurisdictions in terms of balancing client privacy with international demands for transparency.

LEGISLATIVE TRENDS AND NOTABLE CASES Recent legislative developments in these jurisdictions reflect a growing emphasis on

NOTABLE LAW FIRMS Prominent law firms specialising in private client law, such as Withersworldwide, Baker McKenzie, and Appleby, play a crucial role in guiding HNWIs through the complex legal landscape. For clients and lawyers alike, staying informed about legal changes is essential. This can be achieved through continuous education, attending industry conferences, and leveraging legal publications and networks.

THE PRIVATE CLIENT LAWYER: SKILLS AND SPECIALISATION Becoming a private client lawyer requires a unique set of skills, including in-depth knowledge of tax law, estate planning, and international law.

Lawyers in this field must be adept at dealing with complex financial structures and sensitive family dynamics. The choice to specialise in private client law over other areas is often driven by the desire to work closely with individuals and families, the intellectual challenge of navigating multiple legal systems, and the satisfaction of providing bespoke legal solutions.

Private client law stands out in the legal landscape due to its personalised approach and the complex interplay of various legal domains. The choice of jurisdiction plays a crucial role in shaping the legal strategies for wealth management and estate planning. With ongoing legislative changes and the evolving needs of HNWIs, private client lawyers must stay informed and adaptable. The specialisation offers a unique blend of challenges and rewards, making it an appealing choice for lawyers seeking a dynamic and impactful legal career. EG Autumn-Winter 2023 •

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LEGAL & ADVOCACY

Turks & Caicos Trust Legislation Photo: George Wirt / Shutterstock.com

Trusts & Private Client Legislation in The Turks & Caicos The Turks & Caicos Islands (TCI) is a British Overseas Territory in the western Caribbean. Providenciales is home to a majority of the population whilst the administrative capital and seat of government is situated on Grand Turk, The resident population in July 2021 was 57,196, making it the third-largest of the British overseas territories by population writes Oliver Taylor. he economy of Turks and Caicos is primarily dominated by tourism, offshore finance and fishing. The territory’s legal system is based on English common law, with the judiciary headed by a Supreme Court; appeals are heard by the court of appeals and final appeals by the UK’s Judicial Committee of the Privy Council. English is the official language of the nation, and the official currency is the US dollar. There is no income tax, capital gains tax, property tax, inheritance tax, or corporation tax in the TCI, and there is no sales tax or VAT. The Turks and Caicos Islands continue to attract investors and financial institutions due to a flourishing tourism industry, opportunities for real estate investment and development, and tax advantages. In addition, the islands enjoy a stable political and economic climate, and a highly advantageous location in close proximity to the United States.

The Turks and Caicos Islands (TCI) as a jurisdiction with no direct taxes has thus remained an attractive domicile for High Net Worth individuals for many years. Whilst tax revenue is directed from indirect taxes, including tax on imports and consumption, English rules of equity apply where trust legislation is concerned, as modified by the Trusts Ordinance, which is broadly base on the law of the States of Jersey.

T

TRUSTS IN THE TCI The trust is an attractive and useful vehicle for the purposes of asset protection, tax and estate planning, as well as for numerous other purposes ranging from the removal of assets from one’s estate to simple privacy to use by corporations for commercial transactions and investment programmes. The Trusts Ordinance is applicable to trusts whose validity is governed by the law of Turks & Caicos. It is open to specify in the trust instrument that the administration of the trust, and indeed the interpretation of the instrument

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itself, will be governed by the laws of different jurisdictions. The instrument can also provide for the law governing each aspect of the trust to be changed from time to time. A transfer to a trust by an individual cannot be set aside if following the transfer the individual concerned retains sufficient assets to meet his or her actual and estimated liabilities.

The trust laws in the Turks and Caicos Islands are generally favourable to settlors and draw many people to create trusts in the islands. Trusts in the Turks and Caicos are normally created by the executing of a trust instrument, which is private and has no requirement for registration. In various circumstances, a trust may be bought into existence verbally or by operation of law. Administration of trusts is governed by the principles of English common law and equity, supplemented by the TCI Trusts Ordinance and the Trustees Licensing and Supervision ordnance, Regulations and Code. The TCI Financial Services Commission licenses and supervises the conduct of trust business and the provision of trustee services, including the required professional insurance, yearly audits and periodic as well as ad hoc regulatory inspections.

and applicable case law continue to apply insofar as they are not overridden or varied by the statutory provisions. While it also provides for the enforcement of foreign trusts, most of the Ordinance concerns trusts that are specifically Turks & Caicos Trusts.

LEGAL FRAMEWORK The Turks & Caicos Islands (TCI) Trusts Ordinance 2016 replaced the Trusts Ordinance 1990, which was based on widely respected Jersey legislation but also incorporated various features from other jurisdictions as well as some original provisions, many of which were the result of recommendations made by trust expert Professor David Hayton of the University of London. The Ordinance recognises that a trust, wherever made, as existing where a person (the trustee) holds or is deemed to hold property not forming part of his or her own estate for the benefit of any person (a beneficiary) whether or not ascertained or in existence, or for any purpose which is not for the benefit only of the trustee. The Ordinance is not an exhaustive code and English principles

LEGAL DUTIES Trustees in the Turks and Caicos Islands are upheld to the same standards of responsibility as in other jurisdictions which are based on English law. The are required to act with due diligence as any prudent person, and to the best of their ability and skill. They are also required to preserve and enhance the value of trust property and therefore a trustee cannot profit directly or indirectly from the trusteeship, cause or permit any other person to do so, or enter into any transaction relating to the trust for his or her own account.

Trustees must keep and maintain proper accounting records for the trust for a minimum of five years from the date on which they are prepared and keep trust property segregated. They must also act impartially as between beneficiaries, but may

• Productivity, Strategy, Profitability

LEGAL & ADVOCACY

Turks & Caicos Trust Legislation

nonetheless exercise a discretion between them if such discretion is explicitly conferred by the terms of the trust.

STRUCTURES AND ADVANTAGES The Turks and Caicos Islands affords a wide range of wealth planning structures such as trusts (including settlor reserved powers, firewall provisions, purpose trusts and special trusts of company shares), companies, limited partnerships and joint ventures. Notable advantages of this jurisdiction include he ability to form and administer a family investment pool where assets may be aggregated from different arms of the family structure and managed to achieve economies of scale, as well as access to private market opportunities that may not otherwise be accessible.

OBTAINING RESIDENCY In the Turks and Caicos, there are essentially six categories of legal residency status. Only people with Turks and Caicos Islander status (previously called ‘Belongership’) are legally permitted to vote, and they account for approximately 42.5% www.executive-global.com

of the population. Temporary residence permits are issued for periods of 1 to 3 years, which grant applicants the right to reside in the Turks and Caicos Islands with no minimum stay requirement in order to maintain their residency. There are certain prerequisites and formalities that accompany a successful application. Permanent residency may be obtained by means of either

THE TRUST LAWS IN THE TURKS AND CAICOS ISLANDS ARE GENERALLY FAVOURABLE TO SETTLORS AND DRAW MANY PEOPLE TO CREATE TRUSTS IN THE ISLANDS.

a substantial investment within the Islands (Approximately $250,000 USD in Providenciales or $125,000 USD in one of the surrounding Islands in a property or business, or $50,000 in a Government approved venture).

FOREIGN TRUSTS IN THE TCI The TCI Trusts Ordnance provides that a foreign trust or a severable aspect of a trust may be governed and interpreted in accordance with its proper law (usually the law of the jurisdiction designated by the terms of the trust.) A foreign trust is enforceable in the TCI except to the extent that it a) purports to do anything contrary to the law of the TCI, or confer any right or power or impose any obligation that is contrary to the law of the TCI or b) is immoral or contrary to public policy.

Whether it be for the establishment and management of private client structures by competent international service providers, or for residence by wealthy individuals and families, or even a combination of these, the Turks and Caicos Islands is well placed to be a country of choice for discerning investors. EG Autumn-Winter 2023 •

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Canada FDI

The Province of the Bold and the Adventurous Alberta is a province located n Western Canada and is one of the three prairie provinces. Bordered by British Columbia to the west, Saskatchewan to the east, the Northwest Territories to the north, and the U.S. state of Montana to the south, it is one of only two landlocked provinces in Canada, with Saskatchewan being the other, reports Vincenzo Morello.

Photo: Mumemories / Shutterstock.com

lberta has a strong economy primarily driven by its abundant natural resorts, particularly oil and gas. The province is known for its oil sands reserves which contribute significantly to Canada’s energy production. Alberta also has a diverse economy, with sectors ranging from agriculture, forestry, manufacturing, technology and tourism. The eastern area of the province is occupied by the Great Plans, while the western part borders the Rocky Mountains.

Alberta is the fourth largest province in Canada by area, at 255,541 square miles, and is the fourth most populous region which is home to 4,490,701 residents. The capital of Alberta is Edmonton and the largest city, is Calgary with English serving as the official language of the province. Edmonton and Calgary are relatively close to each other by

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standards of Western Canada and distant from other metropolitan regions like Vancouver or Winnipeg.

Alberta has long been an export-orientated economy, with some of the most important products being fur, wheat, beef, oil and gas. In 2013, Alberta’s per capital GDP exceed that of the United States, Norway and Switzerland, and was the highest of any province in Canada at $84,390 CAD. The Fraser Institute states that Alberta also has very high levels of economic freedom, rating Alberta as the freest economy in Canada, and the secondfreest economy amongst U.S. states and Canadian provinces.

Alberta’s GDP reached $325.4B in 2022 and although Alberta has a presence in

• Productivity, Strategy, Profitability

FDI & INWARD INVESTMENT

Canada FDI

many industries including agriculture, forestry, education, tourism, finance and manufacturing, the politics and culture of the province have been closely linked to the production of fossil energy since the 1940s. The economy has a strong link to hydrocarbons, the petrochemical industry, livestock and agriculture, with the oil and gas industry remaining a fundamental part of the economy since 1947, when a substantial amount of oil deposits were discovered at Leduc No. 1 well. As the province most rich in hydrocarbons, it provides an impressive 70% of all the oil and natural gas produced on Canadian soil.

NOTABLE ATTRIBUTES A highly educated workforce, stable banking system and global connectivity have helped Alberta to establish itself in emerging sectors ranging from technology and financial services, to aviation and logistics. Renowned for its natural beauty, Alberta is also home to six UNESCO designated World

ENTREPRENEURS PLAY A CRITICAL ROLE IN ALBERTA’S ECONOMY, UTILISING THEIR SKILLS AND INITIATIVE TO ANTICIPATE NEEDS AND CREATE JOBS FOR ALBERTANS.

Heritage Sites, while continued investment in energy, clean technologies, petrochemicals and agriculture, ensure that Alberta’s economy remains as diverse as its beautiful landscapes. The province is the economic engine of Canada, with a vibrant workforce and diversifying economy built on strong, business-friendly policies that continue to attract job-creating investment.

STARTING A BUSINESS IN ALBERTA Alberta’s tax system is competitive, fair and efficient, and the province’s general corporate income tax rate is 8%, remaining the lowest among Canadian provinces, due in part of having high resource tax revenues. This was reduced from 12% by the Job Creation Tax Cut and Alberta’s small business tax rate is a mere 2%. With one of the lowest corporate tax rates in North America and a highly skilled workforce, more corporations and large companies are investing in Alberta.

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BUSINESS AND ECONOMIC IMMIGRATION There are various immigration programs that enable individuals to invest in the province and potentially obtain permanent residency. One such program is the Alberta Advantage Immigration Program (AAIP), which is an economic immigration program that nominates people for permanent residence in Alberta. Nominees must have skills to fill job shortages or be planning to buy or start a business in Alberta and must be able to provide for their families. This program is run by the Governments of Canada and Alberta. If you are nominated through this program, you may apply for permanent residence status together with your spouse and dependent children. The AAIP has three streams for foreign workers who are living and working in Alberta, or plan to live and work in the province.

Alberta Opportunity Stream - Qualified candidates who live and work in Alberta and have a job offer from an Alberta employer can apply for the AAIP nomination. The Alberta Opportunity Stream is for temporary foreign workers who are already working full-time in Alberta and have a full-time job offer from an Alberta employer in an eligible occupation.

Alberta Express Entry Stream - The Alberta Express Entry Stream allows Alberta to nominate a limited number of qualified candidates from Immigration, Refugees and Citizenship Canada’s Express Entry system. Qualified candidates with an Express Entry profile my be invited by AAIP to apply for nomination for permanent residence and candidates may receive a Notification of Interest (NOI) letter or be asked to submit an application if they have either; experience in an in-demand occupation and an immediate family connection in Alberta; a job offer from an Alberta employer in the healthcare sector and are licensed to practice in one of the eligible healthcare professions under the Designated Healthcare Pathway; a job offer for an eligible tech occupation from an Alberta employer in an eligible tech industry under the Accelerated Tech Pathway; or experience needed to help support labour needs in key sectors, including agriculture, construction and tourism and hospitality.

Rural Renewal Stream - The Rural Renewal Stream supports the attraction and retention of newcomers to rural Alberta through a communitydriven approach that supports local economic development needs and contributes to the growth of the community. The Rural Renewal Stream empowers local communities to recruit and retain foreign nationals to live, work and settle in their communities.

Entrepreneurs play a critical role in Alberta’s economy, utilising their skills and initiative to anticipate needs and create jobs for Albertans.

Entrepreneurs in Alberta who prove to be successful in taking on the risks of establishing a business are rewarded with profits and continue growth opportunities. The AAIP has four streams for entrepreneurs who plan to live in Alberta, buy or start a business in the province.

Foreign Graduate Entrepreneur Stream - This is an economic immigration program for qualified foreign educated graduates that reside outside of Canada who want to launch startup enterprises and innovative businesses in Alberta. This program is a collaboration between the Alberta Advantage Immigration Program and approved designated agencies. The designated agency will review business plans based on the foreign graduate’s ability to demonstrate market need or demand, the potential for successful market entry in the short-term to medium-term, customer acquisition, business development, key partnerships and financial plans to fund the development and operation of the startup.

Graduate Entrepreneur Stream - This program enables the Alberta Advantage Immigration Program to nominate qualified international graduates from Alberta post-secondary institutions who wish to establish or operate a business in Alberta to apply for permanent residence. International graduates of aforementioned institutions who want to start a business or buy and existing business can submit an Expression of Interest.

Rural Entrepreneur Stream - Immigrant entrepreneurs from outside of Canada can apply for permanent residence. The Rural Entrepreneur Stream is an economic immigration program and entrepreneurs who want to start a business or buy an existing business in a rural Alberta community may submit an Expression of Interest. The Alberta Advantage Immigration Program defines rural Alberta communities as any community with a population of less than 100,000.

Farm Stream - Experienced farmers who plan to buy or start a farm in Alberta can apply for permanent residence. This stream is designed for entrepreneurs who have the financial resources and farm management experience to establish a new or purchase an existing farm in Alberta. Candidates have to submit their application and a proposed business plan for assessment and the Alberta Advantage Immigration Program will consult with Alberta Agriculture and Irrigation to ensure the business plan is not only feasible and viable, but meets the needs of Alberta’s agriculture industry.

TOURISM IN ALBERTA Alberta is a popular tourism destination and the province where the bold, adventurous and freespirited come to play. With winter festivals, national parks, shopping delights like West Edmonton Mall, UNESCO world heritage sites, outdoor locales for hiking and camping, word-class skiing, outdoor festivals and professional athletic events, it is home to North America’s largest mountain range and features landscapes like nowhere else in the world.

Approximately one million visitors per year attend Calgary’s Stampede, which is a celebration of the Canadian Wild West and the cattle ranching industry. United States tourists make up the largest subset of direct international air traffic coming into Alberta. Travel Alberta is the Government of Alberta’s destination management organisation driving growth of the province’s visitor economy, creating and promoting must-visit destinations throughout the province. EG Autumn-Winter 2023 •

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Ecuador FDI

FDI, Business, Tourism and The Ecuador Economy Ecuador is a country in northwestern South America, bordered by Colombia the north, Peru on the east and south, and the Pacific Ocean on the west. The country is known for its diverse landscapes offering breathtaking natural beauty, including the Amazon rainforest, the Andes Mountains, and the Galapagos Islands in the Pacific, about 1,000 kilometres west of the mainland, reports Rachel Smith. ts location in South America provides access to regional markets, including the Andean Community, which is a free trade area with the objective of creating a customs union comprising the South America countries of Ecuador, Bolivia, Colombia, and Peru. This trade bloc, headquartered in Peru, was named the Andean Pact until 1996 and came into existence when the Cartagena Agreement was signed in 1969.

The capital, officially named San Francisco de Quito, has an estimated population of 2.8 million in its metropolitan area and is also the capital of the province of Pichincha. Quito is located in a valley on the eastern slopes of Pichincha, an active stratovolcano in the Andes at an elevation of 9,350 ft, making it the highest or the second highest capital city on on Earth. Quito is the banking, financial, political and cultural centre of Ecuador as the country’s major governmental, administrative, and cultural institutions are located within the city.

The majority of transnational companies with a presence in Ecuador are headquartered there. It is also one of the country’s two major industrial centres, with the port city of Guayaquil being the second and the primary trade centre.

Quito is the largest city in contribution to national GDP and the highest in per capital income. The city has the highest level of tax collection in Ecuador, and is known as the most important economic region in the country, with the major industries consisting of textiles, metals, and agriculture and major export crops including coffee, sugar, cacao, rice, bananas and palm oil. Due to its altitude, Quito receives some of the greatest solar radiation in the world, sometimes reaching a UV Index of 24 by solar noon.

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The economy of Ecuador is the eighth largest in Latin America and the 69th largest in the world by total GDP. The country’s economy is based mainly on the export of oil, bananas, shrimp, gold and other agricultural products as well as money transfers from Ecuadorian emigrants employed abroad. The nation is significantly dependent on its petroleum resources, with oil accounting for about one-third of public sector revenue and 32% of export earnings in 2017. Ecuador adopted the US Dollar as its official currency in 2000, which is used throughout the country. The official language is Spanish, but English is widely used throughout the business community.

FOREIGN INVESTMENT IN ECUADOR Ecuador is open to FDI in most sectors, although industries considered strategic reserve the right to be managed by state-owned or controlled companies. These sectors include energy, telecommunications, non-renewable natural resources, transportation, hydrocarbon refining, water and biodiversity. Nearly 80% of foreign investment is in the oil sector, and government policies tend to be very stifling in this industry. Ecuador’s key strengths are its significant mineral, oil and gas potential; a diverse climate that enables for a wide range of crops, marine resources, lower inflationary risk compared to other Latin American countries to a fully dollarized economy, free trade zones, and relaxed labour laws allowing for temporary hiring of workers. Some additional benefits for foreign investment in Ecuador include: Production Code - Exemption of payment of income tax for new investments and production investments. The companies established based on the Production Code in force, as well as new

• Productivity, Strategy, Profitability

companies established by existing companies with the purpose of making new investments and production investments, will be exempt from payment of income taxes for five years, as of the first year in which income is generated that is directly and exclusively attributed to the new investment.

For effects of applying the provisions of the code, new

THIS TRADE BLOC, HEADQUARTERED IN PERU, WAS NAME THE ANDEAN PACT UNTIL 1996 AND CAME INTO EXISTENCE WHENN THE CARTAGENA AGREEMENT WAS SIGNED IN 1969.

FDI & INWARD INVESTMENT

Ecuador FDI

Photo: sunsinger / Shutterstock.com

company. The capital of the company consists of the contributions of the shareholders and cannot be less than $400 USD. Joint Venture (Public / Private) - The state, municipalities, provincial councils and institutions as well as organisations in the public sector can participate in this kind of company jointly with capital of the private sector and the corporate management of the company. These companies can participate for example in the development of agricultural and industrial matters deemed a priority for the national economy and to meet the collective needs or to provide new services to the public sector.

Foreign companies - In order for a foreign company or individual to operate and conduct business in Ecuador, aforementioned company or individual must comply with the requirements stipulated in the Companies Act which are a) Bylaws of the foreign company b) A certificate issued by the Ecuadorian Consulate that accredits the legal standing of the company in its country of origin and authorisation to carry out business in a foreign country. c) Confirmation that the bylaws allow for creating branches abroad.

DIGITAL NOMADISM If you wish to work as a remote worker, you can apply for a Digital Nomad Visa, also known as a ‘rentista visa’, which is valid for two years and entitles you to many benefits. Ecuador launched its digital nomad visa in July 2022. With a low cost of living, it is easy to live comfortably in Ecuador, making it and attractive option for digital nomads.

The prices in Ecuador are significantly lower than those in the United States, even though the US dollar is Ecuador’s official currency. Generally, you can expect to pay $200-$500 per month for an apartment in Quito.

investments and production investments must be made outside of the urban districts of Quito County and Guayaquil County. These investments must also be geared toward diversification, added value, substitution of imports and promotion of exports for industries and services within specific priority sectors such as tourism, logistical services for foreign trade, renewable energy, including bioenergy or biomass energy.

Special Economic Zones (SEZ) - These specific areas within national territory receive special consideration with the aim of attracting new investments. The tax benefits include the exemption of payment of duties on imports in these zones. Additionally, any investment made in a a SEZ is considered a new investment and as such, is exempt from paying income tax and minimum corporate tax for five years. Some other advantages of operating in a special economic zone include zero VAT on imports, the right to reimbursement for VAT paid on purchases of raw materials, supplies and services and the exoneration of currency remittance tax. www.executive-global.com

SETTING UP A BUSINESS IN ECUADOR The minimum labour wage is $394 per month, typically paid weekly, biweekly or monthly. Where income tax is concerned, companies pay a rate of 25% of their taxable base. There are various kinds of business that can be setup in Ecuador. Some of the types of business include: Anonymous Company - This is a company whose capital, divided into negotiable shares consists of the contributions of the shareholders who are exclusively responsible for the proportional amount of their shares. It is managed by temporary presidents, who may or may not be shareholders.

The company must be referred to as an anonymous company or corporation (C.A. or S.A.) according to their acronyms in Spanish. Two or more people can form this type of company, with a minimum working capital of $800 USD. Limited Liability Company - This is a company made up by three or more individuals who only respond to company liability up to the proportional amount of their individual contributions and who do business under the name of a non-descript

REQUIREMENTS FOR A DIGITAL NOMAD ‘RENTISTA’ VISA When applying for an Ecuador digital nomad visa, you must provide a few documents. These include a completed, signed visa application form, a valid passport with a validity of at least six months, issued in the last 10 years with a minimum of two blank pages available, two passport-sized photographs, valid health insurance for the same period of the visa with coverage in Ecuador, certificate of a clear criminal record, proof of employment that proves you work or provide services to a foreign employer, company or client domiciled abroad, proof of financial means that shows 3x the basic monthly salary of $425, (i.e. proof you earn $1,275) with supporting bank statements and proof of a rental agreement, or any accommodation that meets the visa requirements.

The validity of the Ecuador digital nomad visa is two years, however you can renew it for another two years as often as your want.

Family members can also apply for a dependent via (visa de amaro) after you get your digital nomad visa application approved and you are required to demonstrate an additional income of $250 for each family member. EG Autumn-Winter 2023 •

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Economic Develoment

Texas 4B Development Corporations Texas 4B corporations, also known as Type B Economic Development Corporations, are entities established under the Texas Local Government Code. The enabling legislation for Type B corporations was enacted in 1989 with the passage of Senate Bill 7, writes Thomas Hughes. hese corporations are created by cities or counties to promote economic development within their jurisdictions.

The primary purpose of Texas 4B corporations is to attract and retain businesses, create job opportunities and stimulate economic growth.

Some common activities of Texas 4B corporations include infrastructure improvements, land acquisition, workforce development initiatives, marketing and advertising campaigns, as well as providing financial incentives to businesses.

Texas 4B corporations contribute to improving the economy in a manner of ways including: Job Creation - By supporting business growth and expansion, 4B corporations help create new job opportunities for the local workforce, which not only reduces unemployment, but also improves the overall economic standing of the community.

Workforce Development - Many 4B corporations allocate resources to workforce development programs, and these initiatives aim to enhance the skills and capabilities of the local workforce, making them more competitive in the job market and attracting businesses that require skilled labour.

Infrastructure Development - 4B corporations typically invest in infrastructure projects including roads, utilities, and public facilities.

These improvements enhance the local business environment, making the area more attractive to businesses and facilitating economic growth.

Business Attraction and Retention - 4B corporations work to attract new businesses to the region and retain existing ones. They provide financial incentives, infrastructure improvements, and other support to encourage businesses to establish or expand their operations, which leads to increased employment and economic activity.

Proponents of economic development corporations, which are funded through the use of 4A and 4B sales taxes, often argue that these tools equip communities to be able to attract and retain highly valued industries and businesses that might not otherwise be interested in relocating to the region. While Texas 4B corporations have several

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Photo: Roschetzky Photography / Shutterstock.com

THESE IMPROVEMENTS ENHANCE THE LOCAL BUSINESS ENVIRONMENT, MAKING THE AREA MORE ATTRACTIVE TO BUSINESSES AND FACILITATING ECONOMIC GROWTH.

advantages, there are potential disadvantages to consider, such as: Potential for Misuse of Funds - There is a risk that 4B corporations may mismanage or misuse funds allocated for economic development

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projects. Lack of transparency and accountability here can lead to inefficiencies and potential misuse of taxpayer dollars.

Limited Resources - Because 4B corporations rely on funding sources such as sales and use tax revenue, these can be subject to economic fluctuations.As a result, limited resources may restrict the scope and scale of economic development initiatives that can be undertaken.

Lack of Oversight - Depending on the specific structure and governance of a 4B corporation, there may be limited oversight mechanisms in place, which can result in a lack of checks and balances, potentially leading to ineffective decision-making or favouritism.

Ultimately however, these disadvantages can be mitigated through proper governance, transparency, and accountability measures.

Overall, Texas 4B corporations play a vital role in stimulating economic growth, attracting investment, creating jobs and improving the wellbeing of the communities they serve. EG

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- Pierre Lemire, CEO

1 in 3 Americans over age 50 with diabetes are likely to have PAD.

PAD affects a shocking 12-20% of Americans age 65 or older.

People with PAD have a 4-5x greater risk of heart attack or stroke.

The devastating impact peripheral arterial disease (PAD) has on patients, and the economic burden this condition adds to our healthcare system, is unprecedented. Left untreated, PAD can lead to critical limb-threatening ischemia (CLTI) and amputation.

Kent Imaging is dedicated to helping change these odds with the use of NIRS imaging for PAD and vascular insufficiency identification. SnapshotNIR can provide near-instantaneous insights to quickly expedite vascular referral and interventions when deemed necessary.

“Patients with wound and vascular problems have been underserved with respect to screening and assessment technology. To put this into perspective, if a physician thinks you may have a broken arm, they will confirm with an X-ray. SnapshotNIR produces similar significant benefits for PAD patients by using imaging for screening to help improve outcomes and prevent amputations.”

- Pierre Lemire, CEO

www.KentImaging.com

TECHNOLOGY

Distributed Ledger Technology

Monero vs Bitcoin Sovereignty in an Era of Censorship The remarkable dangers to human autonomy, prosperity, liberty and freedom posed by the adoption and proliferation of Central Bank Digital Currencies merely serve as the ultimate form of technological control by central planners to replace physical cash, trap, track and surveil individuals with ‘programmable money’ in an Orwellian fashion, states Shannon Berkley. his is not only completely antithetical to the very freedoms and civil liberties that we enjoy in a free and democratic society today, but ultimately, represent their permanent and irretrievable relinquishment.

If a power-mad state can merely ‘switch you off ’ and lock you out of accessing the funds to your own bank account ‘at the touch of a button’, the very notion of a 100% digitised economy with no physical cash is actually no better than the complete seizure of a nation by a foreign power. Indeed it is perhaps even worse- the very brigade mounting the assault on that nation would at least have the ability to exchange physical cash from their basic pay for spare food, firearms upgrades, favours, or fuel without the risk of scrutinisation by some prevailing central authority disapproving of how the merest fraction of that salary is spent. Perhaps the administrators of aforementioned CBDC disliked how many bullets a soldier expended in that skirmish to save an innocent bystander? What about the 10% deduction from his salary to be put towards his daughter’s college fund? How about that leisurely stride back to the barracks resulting in a two minute-late arrival? All of these events would be at the mercy of the operators of a programmable CBDC who would be able to dock pay at an arbitrary whim, should they disapprove of these antics. This is the inherent problem with centralisation that cryptocurrencies are supposed to circumvent.

Complete totalitarian control over every minute transaction in an economy is what CBDCs represent, as evidenced by the admission of Agustín Carstens, General Manager of the Bank

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of International Settlements. This of course, entirely discredits any discourse on improved ‘stability’, ‘efficiency’, ‘financial inclusion’ or ‘a money free of liquidity or credit risk’ that CBDCs supposedly offer. Important questions must be raised by critical thinkers today; why do we even have central banks if their end goal is the complete removal of cash in place of digital currencies? Why are privacycompromising blockchain projects that do not prioritise financial autonomy being promoted, where other technically sound projects which advance the cause of freedom, liberty, and may genuinely contribute to our financial systemusually derided or ignored? Shouldn’t the world’s central banks be working on behalf of the people towards providing technological solutions that secure freedom, autonomy, and financial stability, instead of attempting to administer the coup de grâce to currencies and sound the final death knell to the very same capitalist system that has made so many banking executives fabulously wealthy? These are centralisation problems which only CBDCs and their centralised surveillance-token equivalents,

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bring to the market. There does of course seem to be a better solution to frolicking financially naked while prying eyes gaze at our bank balances it seems.

WHAT IS BITCOIN? Bitcoin is the world’s most popular cryptocurrency, both in terms of market capitalisation and brand awareness, with a limited supply fixed number of 21,000,000. It is a digital currency that was created to establish a peer-to-peer electronic payment system that enables one party to send a payment to another party without having to go through a central authority like a financial institution.

Next to functioning as a currency, some treat Bitcoin as an investment and buy the

TECHNOLOGY

Distributed Ledger Technology cryptocurrency on exchanges just like they would with stocks, with the expectation that the value will increase over time. Since Bitcoin is a decentralised community and an open source project, anyone can join and participate in its development.

WHAT IS MONERO? Monero achieves maximum privacy through using advanced cryptographic techniques like ring signatures and ring confidential transactions (RCTs), which mix and mask transaction data and this cryptocurrency also employs stealth addresses, generating unique, one-time addresses for each transaction recipient. This dedication to privacy makes Monero a preferred choice for users who are far more concerned with financial anonymity, as it significantly enhances confidentiality and security in the world of digital currencies. Far closer to having a private bank balance than a CBDC will ever be. Much like with physical dollar bills, pound notes, yen or the physical cash of any fiat currency, individuals are able to engage in private transactions to buy groceries, travel, pay for accommodation, invest, give charitable donations, and to exercise their right to anonymity and freedom of choice, which unfortunately isn’t the case with centralised b l o c kc h a i n s . T h i s i s where privacy tokens like Monero come in. The core advantages of Monero are its decentralisation, privacy, fungibility and limited supply.

BITCOIN VS MONERO The value of a given unit of a currency must always be equal to

another unit of that currency, just as one pound is or dollar is always equal to and replaceable with another pound or dollar. There are specialised companies that can help government agencies track illicit cryptocurrency transactions and the fact that the Bitcoin public ledger is transparent and all transactions are visible, creates a false sense of trust in a world full of deception. Tainted coins may in the future be banned from financial transactions, leaving their good-faith holders at a loss. Without privacy, transaction data can be dangerous information in the hands of predatory third parties. If that third party is a central bank that happens to have you on their blacklist while all cash has been eradicated from an economy in place of their electronic currency, escaping the digital casino gulag would be practically impossible.

Projects that are private at the protocol level, are fungible in ways Bitcoin isn’t.

According to Mike Maloney’s research on the best characteristics that define money over the last 5,000 years of human history, money should simultaneously be a) a medium of exchange b) a unit of account c) portable d) durable e) divisible f ) fungible g) a store of value. Whilst neither Bitcoin or Monero fully fit this description in all aspects as an ideal form of money anywhere close to physical assets like gold and silver, Monero would seem a better candidate than Bitcoin as a currency, due to its fungibility and protection of privacy; where Bitcoin is concerned, each satoshi is its ledger history just as much as a unit of account, and none of them can be interchanged with another as they all have distinctive histories, permanently. The achievement of fungibility in large part, hinges on privacy.

Cash is private in transactions. Gold is private in transactions. CBDCs lack any of the positive attributes of either Bitcoin, Monero, precious metals or physical cash- and they are about as different to cryptocurrencies as jelly and glue! (Would you put glue in your ice cream? Or is jelly more appropriate?!)

Photo: Volodymyr_Shtun / Shutterstock.com

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THE RIGHT TO PRIVACY With legislation like The Restrict Act (US), UK Online Safety Bill (UK), The Online News Act (Canada) and other oh-so conveniently open ended legislation providing a broad scope for later interpretation aimed at curbing freedom of information, expression, financial autonomy and potentially bestowing extraordinary new powers upon state actors under the guise of ‘public safety’, ‘financial stability’ or ‘national security’ it is increasingly important to maintain personal privacy in an age of increasing Government overreach. Are the right to privacy and freedom of expression not fundamental elements of the Magna Carta of 1611, the Canadian Charter of Rights and Freedoms, and the United States Constitution?

Why then, do the very same institutions who issue currency, or preside over legislation, seemingly want to stifle or eliminate the alternatives that possess the characteristics required for freedom of choice, at least when compared with the archetypal tools of control that would historically have been deployed by the world’s tyrannical despots?

THE IDEAL MARKET SOLUTION? Private cryptocurrencies leave CBDCs behind in the dust on all counts. Monero beats Bitcoin on privacy, fungibility, transaction fees, and mining algorithm. Bitcoin beats Monero when it comes to transaction speed, scalability, network effect, supply, and price. When it comes to the network effect, or amount of people using Bitcoin vs.

Monero, there are a lot more Bitcoin transactions taking place on a daily basis.

While Monero has a few thousand transactions per day, Bitcoin has hundreds of thousands of transactions per day. Therefore, while Monero’s technical features may be more impressive in many regards, that is of less relevance if only a few people are using the network. Ultimately however, the ideal market solution would have to be open, public, borderless, and censorship-resistant, preserving the privacy and wealth of its owners. The likes of Hitler, Stalin, Lenin, Trotsky, Mao, Pol Pot, and Kim Jong-Il would obviously object to their citizens having this level of privacy and financial autonomy, but if you’re sitting on the opposite side of the table to those folks, you’re probably on the right side of history. EG

Autumn-Winter 2023 •

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TECHNOLOGY

XPeng Motors

Where We’re Going, We Don’t Need Roads: The XPeng X2 Flying Automobile In an era where electric vehicles (EVs) are shaping our future, XPeng Motors emerges as a trailblazer. Based in Guangzhou, China, and with a global footprint, XPeng is not just manufacturing EVs; they are reimagining transportation, reports Oliver Taylor. heir brainchild, the XPeng X2, is a testament to this vision. It’s not just a vehicle; it’s a bridge to a futuristic world, echoing the fantastical flying cars of ”Back to the Future.” However, unlike the iconic DeLorean, the X2 is not a figment of fiction but a tangible leap into tomorrow.

XPeng was co-founded in 2014 by Xia Heng and He Tao, both former senior executives at GAC Group with expertise in automotive technology and research and development. Initial backers included the founder of UCWeb and former Alibaba executive, He Xiaopeng who is namesake and current Chairman of XPeng, as well as Lei Jun, the founder of Xiaomi.

XPeng recently showcased its electric flying car, the XPeng X2, in its first global public flight at Skydive Dubai. This significant event, occurring on the opening day of the GITEX Global tech show at the Dubai World Trade Center, was the car’s debut after clearing a specific operations risk assessment and obtaining a special flight permit from the Dubai Civil Aviation Authority (DCAA).

The flight, witnessed by over 150 attendees, demonstrated the X2’s capabilities, earning praise from DCAA reviewers for its stable flight and standardised operation. Although the flight was simple, with the car performing a vertical takeoff and hovering like a drone, it was a notable milestone for XPeng.

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UNVEILING THE XPENG X2 The XPeng X2, a fifth-generation eVTOL (electric vertical takeoff and landing) aircraft, stands at the forefront of the Urban Air Mobility (UAM) revolution. It’s designed not just to traverse but to transcend, offering a glimpse into a future where the sky is an extension of our streets.

The XPeng X2, a two-seater flying car tailored for low-altitude urban flights and short-distance trips like sightseeing and medical transport, is the brainchild of XPeng Aeroht. This subsidiary

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of the Chinese automaker XPeng is recognised as Asia’s leading flying car company, showcasing its commitment to pioneering future mobility solutions. Design and performance features include: Passenger Comfort: Designed for two, the X2 offers an intimate yet commodious cabin, ideal for both quick urban transits and leisurely sky tours.

Propulsion and Power: With eight electric motors and propellers, the X2 is a testament to efficient, powerful, and graceful aerial mobility.

Speed and Range: Achieving speeds up to 81 mph and a flight duration of 35 minutes, the X2 is tailored for rapid urban commuting.

Autonomous Operation: Its autonomous flight capability embodies the pinnacle of aviation technology, offering unmatched precision and safety.

Safety First: The robust fixed skid landing gear and an innovative ballistic parachute system emphasise XPeng’s commitment to unparalleled safety standards.

The X2 is not just a means of transportation; it’s an experience. The luxurious interiors, expansive windows, and avant-garde infotainment system provide an immersive journey, appealing to the desires of the ultra-wealthy for whom exclusivity is paramount. As a fully electric aircraft, the X2 represents a significant stride towards reducing urban pollution and noise, contributing to a cleaner, greener future. The X2 stands out with its array of groundbreaking features that redefine EV technology. At its core, the X2’s advanced battery technology ensures longevity, swift charging, and optimal performance, vital for the demands of urban air travel.

TRAILBLAZING AUTONOMOUS TECHNOLOGY Featuring a sophisticated autonomous flight system equipped with top-tier sensors and AI, the X2 sets a new benchmark in terms of safety

• Productivity, Strategy, Profitability

and efficiency in UAM. The XPeng X2 features two modes: manual and autonomous, with the latter offering a user-friendly, safe, and intelligent flying experience through easy start, return, and landing functionalities via a single button. The version showcased in the demonstration was the fifth-generation model, but XPeng Aeroht is actively developing its sixth-generation variant.

This upcoming model promises significant enhancements, including the ability to travel both in the air and on roads, unlike the fifth-gen model which is exclusively airborne.

THE XPENG X2 TRANSCENDS THE CONVENTIONAL BOUNDARIES OF EVS, PRESENTING A VISION WHERE LUXURY, EFFICIENCY, AND SAFETY CONVERGE IN THE URBAN SKYLINE.

TECHNOLOGY

XPeng Motors

Photo: Xinhua / Alamy Stock Photo

The vehicle also has unique safety feature in the ballistic parachute, which is indicative of XPeng’s focus on passenger safety, providing an added assurance in emergencies. When juxtaposed with other eVTOL models, the X2 distinguishes itself by seamlessly blending speed, luxury, and safety—a trifecta rarely achieved in the aviation industry.

AeroHT, the eVTOL division of XPeng and formerly known as XPeng Huitian, has secured a conditional permit from the Chinese authorities, enabling human-operated flights of its X2 ”flying car.” This milestone makes the X2 the first eVTOL in China to receive such authorisation, paving the way for XPeng AeroHT’s continued progress towards mass-producing eVTOLs, including its anticipated sixth-generation flying car set for production next year.

Established in 2013 and majorly owned by XPeng Inc. and its founder He Xiaopeng, AeroHT has successfully completed over 15,000 safe flights.

The company’s mission is to merge automotive and aerospace technologies to create safe, electric flying vehicles for domestic use on a large scale.

The X2 comes equipped with features aimed at enhancing the flying experience. These include voiceactivated controls, customisable interior lighting, and climate control systems, all designed to cater to the passengers’ comfort and enjoyment. The vehicle www.executive-global.com

resonates with the whimsical concept of flying cars popularised in Back to the Future (1985), bringing a sense of nostalgia and intertwining the dreams of the past with the innovations of the present.

FORGING AHEAD INTO TOMORROW The introduction of the X2 symbolises more than just a new product; it represents a shift in the paradigm of urban mobility. XPeng Motors is not just adapting to changing trends; they are at the forefront, charting a new course in the evolution of transportation.

In comparison to other eVTOL models, the X2 stands out for its harmonious blend of speed, luxury, and safety. Unlike its competitors, which focus on specific aspects, the X2 offers a comprehensive package of performance and comfort.

ENHANCING THE FLYING AUTOMOBILE EXPERIENCE The X2 boasts a range of accessories that elevate the flying experience. From advanced voice commands to customisable lighting and climate control, every detail is meticulously crafted for sensory delight. The XPeng X2 brings us a big step closer to Marty McFly’s futuristic travels in the iconic 1980s movie directed by Robert Zemeckis.

It’s as if Emmett Brown’s vision leaped off the screen into reality, equipped with the advancements of the

21st century. These innovations clearly illustrate how far technology has progressed, turning science fiction into science fact.

EMBRACING THE FUTURE The launch of the X2 is more than the unveiling of a new vehicle; it’s the embodiment of a new era.

XPeng Motors, through its innovative spirit, isn’t just adapting to trends; they are creating a new narrative in urban mobility.

The XPeng X2 transcends the conventional boundaries of EVs, presenting a vision where luxury, efficiency, and safety converge in the urban skyline.

It represents a journey, a movement towards a future where the fantasies of yesteryear become today’s reality. Echoing the sentiments of Doc Brown, XPeng Motors is crafting a future that’s not just sustainable and efficient but also thrilling and forward-thinking. The X2 is poised to redefine urban travel, turning the dream of flying cars into a resplendent reality. It’s a bridge to a world where the skies become pathways, where the dreams of Back to the Future are no longer just dreams but tangible, exhilarating experiences. As we stand at the cusp of this new era, the XPeng X2 is ready to take us into a future that was once imagined, now realised—a future where the sky is not a limit, but a beginning. EG Autumn-Winter 2023 •

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TECHNOLOGY

Kent Imaging

Advancements in Multispectral Imaging Our dedicated interview with PIERRE LEMIRE, CEO of Kent Imaging, Inc. once again profiles the founder of the award-winning firm focused on global expansion of commercialised multispectral imaging technology that assesses tissue oxygen saturation. Executive Global have another discussion on advancements in tissue oxygenation imaging.

6.5 million patients in the US alone suffer from chronic wounds every year. How is Kent Imaging’s SnapshotNIR device revolutionising wound care assessment procedures?

Millions of patients suffer from non-healing PL wounds, peripheral arterial disease (PAD), critical limb ischemia, amputations, and postoperative complications. As a PAD screening device, SnapshotNIR allows physicians to identify PAD and vascular insufficiency by looking at the tissue in the microvasculature, where oxygen exchange is happening. With the data, physicians can expedite vascular referral and other critical interventions. Clinical studies have demonstrated that early assessment with Snapshot can impact the rate of amputation.

We’ve revolutionised procedures for assessment compared to the current standard of care and we continue to identify ways to understand not only the patient’s local wound condition but the patient from a systemic perspective.

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With chronic wound care coming to the forefront of the medical sector, why is now the perfect time for a tool like SnapshotNIR? Chronic wounds are a globally underserved PL crisis and as our population ages, this unfortunate statistic will increase. Any open wound is a risk for infection and or hospitalisation, which is taxing to the healthcare system and the patient.

With Snapshot’s ability to assess oxygenation and tissue viability quickly and easily, there is an essential need for the technology.

Better treatment strategies supported by diagnostic insights can lead to significant costsavings for the healthcare system through shorter EG

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treatment and recovery times. We now have effective tools for the treatment of wounds, but the question is, which is the right one? Snapshot can assess which therapeutic applications are providing benefits, like hyperbarics, debridement, and cellular tissue products in terms of increasing oxygenation, which is key to wound healing. With stringent demands placed on hospitals and clinics for the optimisation of resources, we need technology that offers a better cost-benefit ratio. Kent is poised to meet that demand.

Tell us about the rewarding impact that EG imaging technology and SnapshotNIR are now having in reassuring anxious patients of chronic wounds?

Snapshot arms patients with a better perspective PL of their condition, providing an easily understandable picture of their healing progression.

For example, it’s a huge commitment for the patient to undergo weekly or daily hyperbaric therapy when they can’t always see the outcome. Now, physicians can better communicate with patients, as well as support personnel, helping them more clearly see the issue and gain improved adherence to therapy.

In turn, patients reclaim hope that their wounds can heal and become active participants in the solution.

In your experience, what are the major medical conditions and procedures for which you have seen SnapshotNIR to be the most effective?

This is a diverse technology with extensive PL opportunities. We currently focus on the specialties of chronic wounds, like ulcers, and pressure injuries, limb preservation, vascular

• Productivity, Strategy, Profitability

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screening, and reconstructive surgery. Other markets that can be explored include traumatic injuries, burns, oncological surgeries and sentinel nodes, colorectal surgery, and aesthetic surgery, to name just a few.

It’s also important to note that cancer patients cannot receive therapy until a wound is closed.

With a tool like Snapshot, that patient can heal their wound faster and receive the critical cancer treatments they require sooner.

You have always been an innovator and while you were at Calgary Scientific, you created the first FDA-cleared device allowing radiologists to view images on their cell phones.

What future technologies do you envision creating?

With the global shortage of healthcare PL workers, we work to develop solutions that allow patients to better manage their conditions.

SnapshotNIR is applicable across all care settings including in-patient and out-patient wound care, long-term care, and acute care. For those managing a chronic condition, Snapshot would allow them to have better care and understanding of how to treat themselves without straining the system.

Kent is dedicated to delivering non-invasive diagnostic solutions to improve clinical insights.

Add to this secure cloud storage, EMR integration, and artificial intelligence supporting diagnosis and treatment options, we look forward to impacting patient outcomes on a global scale with new innovations. EG EG

For further information, please visit: www.kentimaging.com

Kent is dedicated to delivering non-invasive diagnostic solutions to improve clinical insights.

AVIATION

United Airlines Photo: EQRoy / Shutterstock.com

The Ultimate Experience With United Airlines United Airlines, a prominent player in the aviation industry, has been connecting people and cultures across the globe for decades, writes Rachel Smith. ith a rich history and a commitment to excellence, United Airlines has become a preferred choice for travellers seeking comfort, reliability and exceptional service. United Airlines has a rich history that spans nearly a century, tracing its roots back to Varney Air Lines, which was founded in 1926 by Walter Varney. It operated the first commercial air mail flight in the United States. In 1931, Varney Air Lines merged with several other airlines to form Unite dAircraft and Transport Corporate (UATC), which eventually became United Airlines.

Throughout the 1930s and 1940s, United Airlines expanded its route network and introduced several innovations. It was he first airline to introduce flight attendants known as stewardesses at the time, in 1930. Very much an early pioneer, in the 1950s United Airlines became the first airline to offer coast-to-coast jet service in the United States.

The Airline Deregulation Act of 1978 brought significant changes to the industry and United faced challenges during this period such as increased competition and financial difficulties.

However, the airline implemented strategies to improve efficiency and profitability. In the 1990s and early 2000s, United Airlines expanded its international operations and formed alliances with other airlines, such as Star Alliance. It also acquired several airlines including Pan Am’s Pacific division, which helped to solidify its global reach.

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In 2002, the airline filed for bankruptcy protection and underwent a restructuring process to reduce costs and improve its financial position.

Following its restructuring, United Airlines emerged from bankruptcy in 2006 and continued to expand its route network, upgrade its fleet and enhance customer service. In 2010, United Airlines merged with Continental Airlines, forming one of the world’s largest airlines.

There are numerous key features that make United Airlines stand out and why it continues to be a top choice for both business and leisure travellers.

An Extensive Network: United Airlines boasts an extensive network that spans across six continents, serving over 350+ destinations around the world. Whether you are planning a domestic trip within the United States of an international adventure, United Airlines offers a wide range of routes to suit your travel needs.

A Modern Fleet: United Airlines takes pride in its modern fleet, comprising state-of-the-art aircraft equipped with the latest technology and amenities.

From spacious seating to inflight entertainment systems, passengers can enjoy a comfortable and enjoyable journey, no matter the destination.

Customer Service Excellence: United Airlines places a strong emphasis on customer service, ensuring that every passenger receives personalised attention and assistance throughout their journey.

From the moment you step into the airport to the time you reach your preferred destination, United

• Productivity, Strategy, Profitability

Airlines’ dedicated staff are committed to making your travel experience as seamless and memorable as possible.

MileagePlus Loyalty Program: United Airlines offers its loyal customers the opportunity to join the MileagePlus loyalty program. By earning miles for every flight, travellers can enjoy various benefits such as priority boarding, better access to airport lounges, and even free flights. The program

UNITED AIRLINES TAKES PRIDE IN ITS MODERN FLEET, COMPRISING STATE-OF-THE-ART AIRCRAFT EQUIPPED WITH THE LATEST TECHNOLOGY AND AMENITIES.

AVIATION

United Airlines United Club lounge offers a stylish and modern setting, complete with a bar, dining area, and comfortable seating options. It provides a peaceful retreat for passengers before their flights.

rewards frequent flyers and enhances their overall travel experience.

Commitment to Safety: United Airlines prioritises the safety and well-being of its passengers above all else. The airline adheres to strict safety protocols and invests in regular maintenance and training programs to ensure the highest level of safety standards. Travellers can rest assured knowing that their well-being is a top priority when flying with United Airlines.

United Airlines operates several lounges around the world, providing passengers with a comfortable and relaxing space to unwind before their flights.

Some notable airline lounges include: United Polaris Lounge - Chicago O’ Hare International Airport (ORD): This flagship lounge offers a luxurious and tranquil atmosphere, featuring private daybeds, shower suites, a fullservice bar, and a gourmet dining experience. It is known for exceptional service and elegant design.

United Polaris Lounge - San Francisco International Airport (SFO): Much like the Chicago O’Haire lounge, the San Francisco Polaris Lounge offers a sophisticated ambiance, high-end amenities and a wide array of culinary options. It www.executive-global.com

also provides remarkable views of the airport and the surrounding area.

United Club Lounge - Los Angeles International Airport (LAX): The lounge is known for its modern and stylish design, offering a relaxing atmosphere for passengers. It features comfortable seating, a variety of food and beverage options, and amenities such as Wi-Fi and charging stations.

United Club Lounge - Newark Liberty International Airport (EWR): As one of United Airlines’ major hubs, the United Club at Newark Airport is a popular choice among travellers. It offers comfortable seating, complimentary snacks and beverages and a business centre to cater to the needs of passengers.

United Club Lounge - Tokyo Narita International Airport (NRT): This spacious lounge provides a serene environment for travellers, with comfortable seating , complimentary snacks and beverages and a business centre. It is particularly popular among United Airlines passengers travelling to and from Asia.

United Club Lounge - London Heathrow Airport (LHR): Located in Terminal 2, this

UNITED BUSINESS CLASS VS DELTA BUSINESS CLASS The difference between United Airlines Business Class and Delta Business Class can vary based on numerous factors such as specific aircraft, route, and service offerings. However there are some general differences that may help you to understand the distinctions between the two.

Seat Configuration and Design: Both United Airlines and Delta offer lie-flat seats in their Business Class cabins on long-haul flights.

However, the seat configurations and designs can vary. United Airlines’ Business Class often features a 2-2-2 or 1-2-1 seating arrangement, providing direct aisle access to most passengers.

Delta’s Business Class typically offers a 1-2-1 or 2-2-2- configuration, ensuring direct aisle access for all passengers.

Cabin Amenities: The amenities provided in United Airlines and Delta Business Class cabins can differ. United Airlines offer its Polaris Business Class, which includes features like enhanced bedding, personal storage compartments, and access to Polaris Lounges. Delta’s Business Class, known as Delta one, offers amenities such as Westin Heavenly bedding, TUMI amenity kits, and access to Delta Sky Clubs.

In-Flight Entertainment: Both United Airlines and Delta provide in-flight entertainment systems in their Business Class cabins. However, the specific offerings and systems can vary. United Airlines offers personal seatback screens with a wide selection of movies, TV shows, and music. Delta provides a similar seatback entertainment system, often including a large library of entertainment options.

Dining Experience: The dining experience in United Airlines and Delta Business Class can differ in terms of menu options and service style.

Both airlines typically offer a range of gourmet meals and beverages, including complimentary alcoholic beverages. United Airlines’ Polaris Business Class often emphasises a restaurant-style dining experience, while Delta One focuses on a more personalised dining approach.

United Airlines is also committed to sustainability and has implemented various environmental initiatives. This includes investing in fuel-efficient aircraft, reducing carbon emissions and implementing recycling programs. The airline has one of the youngest and most fuel-efficient fleets in the industry, which helps to minimise their environmental footprint. United Airlines are also committed to increasing the se of sustainable aviation fuel (SAF) and have collaborated with fuel producers to increase its availability.

Today, United Airlines operates a vast network of domestic and international flights, serving millions of passengers each year. It continues to innovate and adapt to changing industry trends, striving to provide a seamless and enjoyable travel experience for its customers. EG Autumn-Winter 2023 •

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AVIATION

Aircraft Registration

Aircraft Registration in Bermuda Aircraft registration in Bermuda is a topic of great significance as Bermuda has become a popular jurisdiction for aircraft owners and operators to register their aircraft. The Bermuda Aircraft Registry offers a range of benefits and advantages that make it an attractive choice for both commercial and private aircraft owners, says Thomas Hughes. ircraft registration in Bermuda has existed since 1931. One of the key advantages of registering an aircraft in Bermuda is the country’s reputation for safety and regulatory compliance. Bermuda is recognised as a leading jurisdiction in aviation safety and has been granted category 1 status by the Federal Aviation Administration (FAA) of the United States. This signifies that Bermuda meets the highest international standards for aviation safety oversight.

The Bermuda Aircraft Registry operates under the oversight of the Bermuda Civil Aviation Authority (BCAA), which is responsible for ensuring compliance with international aviation regulations. The BCAA has a strong track record of upholding safety standards and conducting thorough inspections and audits of registered aircraft. Another significant advantage of registering an aircraft in Bermuda is the favourable tax environment, as Bermuda does not impose any taxes on aircraft registration, ownership or operations. This includes no import duties, sales tax, or value-added tax (VAT) on the purchase or importation of aircraft. This tax exemption can result in substantial cost savings for aircraft owners and operators and this makes it an attractive option for individuals and companies looking to minimise their tax liabilities.

In addition to the tax benefits, Bermuda also offers a stable and business-friendly legal framework for aircraft registration. The country has a well-established legal system based on English common law, which also provides certainty and protection for aircraft owners. The Bermuda Companies Act allows for the registration of aircraft in various ownership structures, including individual ownership, corporate ownership, and trust ownership.

Bermuda also has a flexible and efficient registration process, which enables for a quick

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turnaround time. The Bermuda Aircraft Registry has implemented an online registration system, which streamlines the application procedure and reduces paperwork. This enables aircraft owners and operators to register their aircraft in a timely manner and commence operations without unnecessary delays. Moreover, Bermuda has a strong reputation for confidentiality and privacy. The country has robust data protection laws that safeguard the personal and financial information of aircraft owners and operators.

This can be particularly appealing for high net worth individuals and corporate entities who value privacy and discretion.

The Bermuda Aircraft Registry is open to both commercial and private aircraft. Commercial aircraft operators can take advantage of Bermuda’s status as a category 1 jurisdiction to gain access to international markets and expand their operations internationally. Private aircraft owners can enjoy the benefits of owning an aircraft in a tax-efficient jurisdiction while enjoying the flexibility and convenience of private air travel. Bermuda Aircraft Registry, much like Cayman Islands Aircraft Registry is widely regarded as a reputable and

THE BCAA SETS AND ENFORCES REGULATIONS IN THESE AREAS TO ENSURE THE SAFE AND EFFICIENT OPERATION OF AIRCRAFT WITHIN BERMUDA’S AIRSPACE.

• Productivity, Strategy, Profitability

well-established registry in the aviation industry, and this recognition can enhance the value and marketability of an aircraft registered in this jurisdiction.

Furthermore, aircraft registered in Bermuda have access to a wide range of international routes and Bermuda has signed numerous bilateral air service agreements, allowing registered aircraft to operate globally with ease. This connectivity opens up even more opportunities for business and leisure travel, making Bermuda an ideal selection for international operations.

ADVANTAGES AND SAFETY PRECAUTIONS Another advantage that the jurisdiction provides to aircraft owners is the flexibility offered by the Bermuda Aircraft Registry. It allows for various types of aircraft to be registered, including commercial jets, private aircraft, helicopters and more. This flexibility can cater to a wide range of needs of aircraft owners and operators. One of he most important considerations must always be safety, and while it is important to review the political stability of a location, it is also necessary to evaluate the regulatory safety and reputation of the Civil Aviation Authority in any given jurisdiction.

While some larger registries are considered high profile and may have associated security risks, some of the smaller offshore registries will be more discreet and in locations that are not subject to

AVIATION

Aircraft Registration Photo: Dimitrije Ostojic / Shutterstock.com

much political volatility. Choosing an offshore registry with a top quality international reputation and uncompromising compliance to all regulatory standards should remain at the top of the list of considerations.

Many of the offshore registries including Bermuda Aircraft Registry have low-profile registration marks, which can be valuable the flying aircraft in areas that may be experiencing political instability or other security or safety risks. Security considerations are increasingly more important in today’s day and age, and it is critical to opt for an offshore registry that does not require the aircraft to be based in or primarily used in that location. Where financing is concerned, Bermuda is known as a global financial centre and aircraft owners may find attractive financing options and insurance solutions on offer through Bermudabased financial institutions and insurers.

To register an aircraft in Bermuda, certain requirements must be met. These include compliance with international aviation safety standards, proof of ownership or lease agreement, and the appointment of a local registered agent. The registered agent acts as a liaison between the aircraft owner and the Bermuda Civl Aviation Authority, assisting with the registration process and ensuring ongoing compliance with regulatory requirements.

A significant factor that must be considered is that while Bermuda offers numerous advantages for aircraft registration, it is essential to seek professional advice and guidance to navigate the www.executive-global.com

registration process and ensure compliance with all applicable regulations. Aviation law firms and consultants with expertise in Bermuda’s aircraft registry can provide valuable assistance and ensure a smooth and efficient registration process.

In addition to aircraft registration, aviation law in Bermuda covers various other areas, including airworthiness standards, aircraft maintenance, pilot licensing, and air traffic control. The BCAA sets and enforces regulations in these areas to ensure the safe and efficient operation of aircraft within Bermuda’s airspace. Bermuda also has legislation in place to address aviation accidents and incidents.

The Air Navigation (Overseas Territories) Order is the primary legislation that governs aviation accidents and incidents in Bermuda, establishing the legal framework for accident investigation, reporting and the enforcement of safety measures.

Moreover, Bermuda has implemented measures to comply with international aviation security standards. The country has adopted the International Civil Aviation Organization’s (ICAO) standards and recommended practices for aviation security. This includes implementing security measures at airports, conducting regular security audits and ensuring compliance with international security protocols.

Bermuda’s geographic location is advantageous for aircraft operations. It is strategically positioned in the Atlantic Ocean, making it a convenient stopover point for transatlantic flights and this

location allows for efficient routing and fuel savings, reducing operational costs for aircraft operators.

COMPARING REGISTRATION WITH OTHER JURISDICTIONS Aircraft Registration in Bermuda presents numerous advantages compared to other jurisdictions. Firstly, when compared with the United States and the Federal Aviation Administration (FAA), Bermuda offers a streamlined registration process compared to the FAA, which can involve more paperwork and longer processing times. Bermuda’s aircraft registry is known for its efficiency and quick turnaround times, while the FAA can sometimes experience delays. Bermuda’s tax environment is more favourable as there are no corporate income taxes, capital gains taxes, or personal income taxes on aircraft ownership, whereas the U.S. has various tax obligations.

Both Bermuda and the Cayman Islands have reputable aircraft registries known for their safety standards and regulatory compliance. Bermuda’s registration process is considered by some to be more efficient and streamlined compared to the Cayman Islands and the country has no import duties or sales tax on aircraft, although both Bermuda and the Cayman Islands are more favourable to aircraft registration in the United States. EG Autumn-Winter 2023 •

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AVIATION

Aircraft Finance

Aircraft Finance and Leasing Specialised aircraft lenders are financial institutions that are focused on providing financing solutions for aircraft purchases. These lenders have expertise in the aviation industry and understand the unique considerations and complexities involved with aircraft financing, writes Rachel Smith. hese specialised lenders have an in-depth knowledge of factors including aircraft valuation, market trends and regulatory requirements, understanding the intricacies of aircraft finance and are thus in a better position to offer tailored solutions to aircraft buyers. They typically are able to provide loans, leases, or lines of credit that are structured to accommodate the unique characteristics of aircraft transactions and have a streamlined loan application and approval process, working closely with borrowers to expedite the financing process as a result of understanding the time- sensitive nature of aircraft transactions.

Specialised lenders also have expertise and experience in evaluating the value and the condition of aircraft which serves as collateral for the loan, assessing factors ranging from age, maintenance history, aircraft type and market demand to determine loan amounts and terms.

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FINANCING VS OUTRIGHT PURCHASE Financing your private jet is a popular option for several reasons. It allows individuals or corporations to acquire a private aircraft without paying the full price upfront and tying up their cash, which would otherwise be better put to work in another investment generating a return. If a new or preowned aircraft is acquired for cash – costing tens of millions of dollars – that’s a lot of capital tied up in the asset. Financing enables immediate access to the aircraft and the benefits of private air travel without a significant capital outlay and private jet financing enables the cost of the aircraft to be spread over an extended period of time through instalments, making the financial burden far more manageable and aligning with the cashflow objectives of the individual or corporate borrower.

Depending on the jurisdiction and circumstances, interest payments and depreciation expenses may be tax deductible, reducing the overall tax liability of aircraft owners. Tax rates vary radically between countries, and even between states in the U.S. An increasingly popular financing choice is

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Photo: Juice Dash / Shutterstock.com

TAX RATES VARY RADICALLY BETWEEN COUNTRIES, AND EVEN BETWEEN STATES IN THE U.S. AN INCREASINGLY POPULAR FINANCING CHOICE IS THE OPERATING LEASE.

• Productivity, Strategy, Profitability

the operating lease. In an operating lease the private aircraft (whether new or pre-owned) is purchased by a third-party financial institution (called he lessor) and is then leased to the operator (the lessee) for a stated duration and rent. The title to the aircraft resides with the lessor, and the lessee enjoys the right to use the aircraft without the lessor’s interference.

NOTABLE PLAYERS As interest rates continue to rise, leasing may become an increasingly popular trend and for aircraft operators who want to keep a young fleet of aircraft expecting to turn-in inventory every 5-8 years or so, aircraft leasing may indeed prove to be an excellent choice. There are a number of very reputable companies which will help, including AerCap, Dubai Aerospace Enterprise (DAE), Chapman Freeborn, Textron Financial, Air Lease Corporation, Avolon, Nordic Aviation Capital, and SMBC Aviation Capital. EG

Are You Ready? We Are For You!

Passionate Team, Superb Technologies IOS Services Geoscientifiques, Inc www.iosgeo.com

EXECUTIVE EDUCATION

EFMD

Business Education’s Rising Rivalry Although it may come as a surprise, research was not initially a component of business schools when they were first established, says Andreas Kaplan.

Article by

Andreas Kaplan

PRESIDENT, KUHNE LOGISTICS UNIVERSITY

riginally, business schools were designed as vocational institutions to train students for a new profession: management. For instance, at the European School of Commerce Paris (ESCP), the world’s first business school, founded in 1819, the curriculum was predominantly, if not entirely, focused on practical learning through exercises and simulation games.

From their inception, business schools, particularly those in the United States, faced criticism for their highly practical approach to management education. While European business schools were mostly independent institutions, their American counterparts were often universityaffiliated and were consequently accused of diluting the universities’ academic standards by faculties of established disciplines. The creation of the nowrenowned Harvard Business School in 1908, for instance, was met with significant resistance. One alumnus even voiced his disapproval in lyrical form, buffooning the decision by saying, “Fair Harvard!

I hear that you have been such a fool as to start a ridiculous Business School.”

In response to these critiques, American business schools endeavoured to adopt a more scientific approach, laying the groundwork for modern business research. This pursuit of academic recognition was further emphasised by the 1959 Gordon-Howell Report, which bemoaned the low academic standards of business schools. The US government allocated substantial funds for scientific business studies to aid management schools in their transformation. In return, top US schools committed to reforms, such as requiring faculty members to hold a Ph.D. and produce a substantial amount of scientific output. As publishing led to additional government funding, a direct link was forged between a professor’s research output and the respective institution’s

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budget. The primary motivation for research thus became external recognition and financial support, resulting in research production driven mainly by extrinsic factors. By the end of World War II, the Americanisation of management education in Europe had begun. European schools felt compelled to emulate the US model, striving to publish in top US-based academic journals. Once again, the impetus to produce research was not driven by intrinsic motivation but rather by the need to comply with external pressures.

TODAY’S MANAGEMENT JOURNALS Little has changed today, and some might argue that the situation has even worsened. Many top management journals have become increasingly rigorous and scientific, often sacrificing relevance in their pursuit of excessive rigour. To gain respect from their peers, researchers worldwide employ overly complex methods to address questions of (too) little managerial significance. They prioritise mathematics and economics, the subjects most closely related to the hard sciences, in an effort to demonstrate that management is a science. Consequently, the realism of assumptions takes a backseat to the elegance of mathematical equilibrium models. Some leading business schools have even based their entire faculty recruitment strategy on hiring only those with PhDs in foundational (i.e., non-management) disciplines such as mathematics, econometrics, or psychology.

These qualifications seem to enhance one’s chances

IN RETURN, TOP US SCHOOLS COMMITTED TO REFORMS, SUCH AS REQUIRING FACULTY MEMBERS TO HOLD A PH.D AND PRODUCE A SUBSTANTIAL AMOUNT OF SCIENTIFIC OUTPUT.

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of being published in top-tier journals more than having a solid background in management studies or (heaven forbid) practical work experience. Rigour has, in many ways, eclipsed relevance, not to mention reach.

It is, therefore, unsurprising that management research regularly faces questions and criticism about its practical impact and purpose. A recent Financial Times article stated that professors are increasingly studying “abstract, abstruse, and overly academic topics with little resonance beyond the higher education sector” and summarised the status quo of research at business schools as “underperforming.” Management researchers would write primarily for their peers, and thus their work remains largely inaccessible to the corporate world. This situation is even more surprising when considering the significant costs of conducting research at business schools: An eye-watering $4 billion is spent yearly by AASCB-accredited schools alone to finance research activities.

THE CHALLENGE TO CHANGE Most business school leadership teams would likely agree that the system is heading in the wrong direction and should be reformed. The urge to create the RRBM network—which seeks to promote the

Article originally published in Global Focus www.globalfocusmagazine.com/business-educations-rising-rivalry-a-reason-for-rigorous-research-with-relevance-and-reach/

EXECUTIVE EDUCATION

EFMD

Photo: fizkes / Shutterstock.com

production and dissemination of managerially and societally relevant management research—serves as evidence of this sentiment. However, while the status quo is unsatisfactory, it appears challenging to change, and the reasons for this have been widely discussed. One argument is that there simply has not been a strong enough incentive to modify the system. Professors write for their peers to secure tenure and promotions. League tables and quality labels prioritise publication outlets and article quantity over content and managerial significance, which are inherently difficult to assess and evaluate, especially on a large scale. Above all, attracting students was largely unrelated to professors’ research relevance. If anything, potential candidates examine where their (future) faculty earned their PhDs but rarely consider the relevance or importance of their research.

As management researchers, our work should advance businesses and organisations, but even more critically, it should benefit people and the planet. Today, for better or worse, the situation has shifted. The rapid digitalisation of the sector, greatly accelerated by the COVID-19 pandemic, appears to be a game-changer for management education and research. The pandemic not only changed learners’ attitudes towards online courses, which www.executive-global.com

they had previously been reluctant to embrace, but also intensified competition and introduced new players from edtech (e.g., ThePower MBA) and big tech (e.g., Google’s Career Certificates).

These educational alternatives, attractive due to their shorter program lengths and lower tuition fees, gained prominence during the pandemic, and their competitive strength should not be underestimated. One study by CarringtonCrisp, a consultancy specialising in higher education, revealed that nearly 40% of respondents would consider pursuing their studies with alternative educational providers instead of enrolling in a traditional MBA program.

However, these alternative providers typically do not engage in research production. This opens an opportunity for established business schools to compete and enhance their academic reputations by conducting high-impact research, thereby signalling the superiority of traditional, researchactive schools, also justifying their high tuition fees, over academically weak educational alternatives.

This transforms research from a quality signal for peers to a quality signal and differentiating factor for prospective students and their parents. Research must be relevant, responsible, and create reach and visibility to serve this purpose.

WHAT CONSTITUTES RELEVANT AND RESPONSIBLE RESEARCH? This begs the question: What constitutes relevant and responsible research? One could define such research as “the production of valuable knowledge, reached with reasonably rigorous methodology, substantially improving the world of business and society at large.” As management researchers, our work should advance businesses and organisations, but even more critically, it should benefit people and the planet. The relevance and scope of a study should not be constrained by an excessive focus on unnecessary methodological complexity. Although publishing such research in top journals is not always easy, it is a feasible and worthwhile goal. After all, what good does research published in the best scientific journals do if it lacks practical relevance and fails to achieve visibility within the broader (business) community?

Such research must not only help to distinguish traditional top-tier business schools from new entrants from ed and big tech, but also be a competitive advantage for well-established institutions against close rivals. After all, the production of significant management research in a particular field signals to students that they should attend one university over another. Case in point, my institution and current employer, the Kühne Logistics University (KLU), would have far less market credibility as the world’s leading provider of education and training in logistics and supply chain management—integrating and combining management, data science, sustainability, and related fields—without strong research output in these areas.

In conclusion, business school leadership teams should view research as a valuable asset in the increasingly competitive landscape of management education. They should develop incentive systems that encourage academics to publish rigorous, purposeful, and potentially highly visible work with significant reach beyond academia. The expected reach of a research project should be considered when selecting research questions.

Undoubtedly, many professors already conduct highly relevant research, and most of us would like to see the current system changed. However, in the end, one needs incentives to act, and it takes considerable strength to challenge an entire ecosystem. A focus on reach is not entirely new.

Senior researchers especially, after achieving tenure and a full professorship, often care deeply about the visibility of their work beyond their peers by focusing on writing books and more manageriallyoriented articles published in HBR, CMR or SMR. What’s new is that such behaviour should not be the exception but the norm, and it should not only be important in the later phases of a professor’s career but become a formal criterion in promotion and tenure. As we have now seen happen in the music, movie, and gaming industries, we may have no choice—the sector’s digitalisation may finally compel us to change the way things work. EG

For further information, please visit: www. globalfocusmagazine.com Autumn-Winter 2023 •

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Entrepreneurship

Network Marketing and the cultivation of an Entrepreneurial Mindset Network marketing, also known as multi-level marketing (MLM), has emerged as a dynamic and transformative business model, aligning perfectly with the entrepreneurial mindset, thinks Oliver Taylor. ompanies such as Forever Living, Herbal Life, Simply Naturals, Synergy Worldwide, and the Utility Warehouse Discount Club are prime examples of this approach. They offer unique products or services through a network of independent distributors, presenting a blend of business opportunity and personal development.

Unlike pyramid schemes, which primarily focus on recruiting new members with the promise of high returns, network marketing distinguishes itself by emphasising the sale of legitimate products or services. This critical difference is what sets network marketing apart as a sustainable and ethical business model. It incentivises hard work, entrepreneurship, and excellence. Participants are encouraged to develop strong business acumen and team-building skills. The reward system in MLM, which is inherently mutually beneficial, promotes a collaborative work environment that is essential for success in this sphere.

A significant aspect of network marketing is the comprehensive training and support provided by these organisations. Distributors are often given extensive resources to help them succeed, including training materials, events, and various other resources. This investment in personal and professional development leads to individuals within these networks developing a more positive outlook and a higher level of drive compared to those in traditional business environments.

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ENDORSEMENT BY LEADING FIGURES The potential and effectiveness of network marketing have not gone unnoticed by highprofile figures. In their book Why We Want You To Be Rich (2006), Donald Trump and Robert Kiyosaki advocate for MLM as a viable platform for entrepreneurship. They emphasise the skills,

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discipline, and character development that this business model cultivates. This recognition underlines the validity and potential of network marketing as a pathway to success.

Inspirational Leadership and Personal Growth - Network marketing organisations frequently incorporate teachings from renowned motivational speakers such as Zig Ziglar, Jim Rohn, and Tony Robbins in their training programs. These figures are synonymous with personal growth, leadership, and success - themes that resonate deeply within the MLM community. For example, the Utility Warehouse Discount Club in the UK offers comprehensive training programs that enhance skills, maintain best practices, and significantly boost morale.

Such training is not just about selling products or services; it’s about shaping individuals into leaders and effective entrepreneurs.

Economic Impact of Network Marketing - The economy of network marketing is populated by self-starters and entrepreneurs who have left the traditional 9-to-5 jobs. They have managed to create substantial residual incomes for themselves with relatively minimal overhead. This achievement is a testament to the effectiveness of the MLM model and the diligent team efforts required in this field.

Collaborative Success and Team Dynamics - A unique aspect of network marketing is its focus on collaborative success. Distributors are encouraged to support those in their downline, fostering an environment of mutual growth and achievement.

This approach contrasts sharply with the often competitive and sometimes toxic environment of traditional corporate settings. In MLM, one’s success is tied to the success of their team, creating a supportive and cooperative atmosphere.

From Side Hustle to Full-Time Business - For many, network marketing starts as a side hustle but

• Productivity, Strategy, Profitability

Photo: ZUMA Press, Inc. / Alamy Stock Photo

has the potential to grow into a full-time business venture. This model provides fertile ground for making lifelong friends, establishing business contacts, and developing an entrepreneurial mindset.

The transition from an employee to an independent business owner is a journey of growth, learning, and personal development.

Leadership Qualities and Resilience - The challenges faced in network marketing are instrumental in honing leadership qualities and an indomitable spirit. These attributes are invaluable across various business contexts. Whether it’s about recruiting new employees, raising capital, or selecting business partners, the skills and mindset developed through MLM are highly beneficial.

Implications for Education and Corporate Sectors - One of the frequent criticisms of the traditional schooling system, especially highlighted

by Robert Kiyosaki, is the lack of financial education.

Network marketing fills this gap by providing realworld financial education and business training.

This training develops an entrepreneurial mindset, character, determination, and mental strength. Such skills are not only useful for those directly involved in MLM but can also benefit the broader corporate and educational sectors.

The Role of Network Marketing in Fostering Entrepreneurship - Network marketing serves as an excellent incubator for entrepreneurship. The model encourages individuals to take ownership of their business, make strategic decisions, and learn the nuances of managing a business. This

https://www.amazon.co.uk/Why-We-Want-You-Rich/dp/1612680917

EXECUTIVE EDUCATION

Entrepreneurship

experience is invaluable for anyone looking to start their own venture or take on leadership roles in different sectors.

Community and Relationship Building One of the most underrated aspects of network marketing is its ability to build communities and relationships. Distributors often find themselves part of a supportive network where shared experiences and goals lead to strong bonds. These relationships can transcend business, leading to lifelong friendships and a supportive community that is invaluable both professionally and personally.

Challenges and Overcoming Adversity Network marketing is not without its challenges.

Distributors often face rejection, market fluctuations, and the constant need to adapt and grow. These challenges, however, are crucial for personal and professional growth. They teach resilience, adaptability, and the importance of maintaining a positive outlook even in the face of adversity. Overcoming these hurdles is a part of the journey in network marketing, and it imbues distributors with a sense of accomplishment and the confidence to tackle various business scenarios.

Diversity and Inclusivity in Network Marketing - Network marketing is also notable for its inclusivity. It opens doors for individuals from diverse backgrounds, regardless of their prior business experience, education, or socioeconomic status. This level of diversity enriches the experience within the MLM community, fostering www.executive-global.com

NETWORK MARKETING IS NOT WITHOUT ITS CHALLENGES. DISTRIBUTORS OFTEN FACE REJECTION, MARKET FLUCTUATIONS, AND THE CONSTANT NEED TO ADAPT AND GROW.

a culture of inclusivity and mutual respect. It also provides a platform for learning from a wide array of perspectives, further enhancing personal growth and understanding.

Sustainable Business Practices and Ethics An important aspect of network marketing is its focus on sustainable and ethical business practices.

Reputable MLM companies are committed to high standards of integrity and transparency, ensuring that their products and services add real value to customers. This commitment to ethical practices not only builds trust with consumers but also instills a sense of pride and responsibility among distributors.

The Role of Technology in MLM - In the digital

age, network marketing is also evolving with the integration of technology. Online marketing tools, social media platforms, and digital training resources have become integral parts of the MLM business model. This integration allows distributors to expand their reach, engage with a broader audience, and operate their businesses more efficiently.

Financial Freedom and Independence One of the most appealing aspects of network marketing is the potential for financial freedom and independence. Unlike traditional jobs, MLM offers the possibility of passive income, where the efforts put in today can yield benefits long into the future. This potential for residual income is a significant draw for those looking to escape the constraints of a regular salary and achieve greater financial autonomy.

Global Reach and Expansion - Network marketing is not confined by geographical boundaries. Many Network Marketing companies operate on a global scale, offering distributors the opportunity to expand their business internationally. This global reach is not only exciting but also exposes distributors to different cultures and business practices, broadening their horizons and enhancing their global business acumen.

Leadership and Mentorship - Leadership and mentorship are key components of the MLM model. Experienced distributors often take on mentorship roles, guiding new members through the nuances of the business. This mentor-mentee relationship is beneficial for both parties, as it allows experienced members to refine their leadership skills while helping newcomers navigate their MLM journey.

Preparing for the Future - Network marketing prepares individuals for the future in many ways. It equips them with the skills and mindset necessary to adapt to changing business landscapes. In an increasingly uncertain world, the ability to pivot, innovate, and embrace new challenges is invaluable. Network marketing provides a practical training ground for developing these essential life skills.

Ultimately, network marketing is much more than a business model; it’s a pathway to entrepreneurship, personal growth, and financial independence. It provides a collaborative environment that nurtures lifelong friendships and business contacts. The training, challenges, and experiences gained in MLM shape individuals into resilient, adaptable, and forward-thinking entrepreneurs. These qualities are invaluable in the modern business world and beyond.

Network marketing should not be overlooked as a viable option for those seeking to develop an entrepreneurial mindset and leadership skills. Its emphasis on team success, personal development, and ethical business practices makes it a noteworthy model in today’s dynamic business environment.

With its potential to impact education and corporate sectors positively, network marketing stands as a testament to the power of determination, teamwork, and the entrepreneurial spirit. EG Autumn-Winter 2023 •

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AMBA

The Outlook for LatAm AMBA & BGA CEO Andrew Main Wilson examines the bonds forged at this year’s Latin America conference for deans and directors; there was also a strong contingent of attendees from Chinese business schools, reflecting their desire to develop international partnerships.

Article by

Andrew Main Wilson CEO, AMBA & BGA

ur 18th annual Latin America conference for deans and directors took place in the cosmopolitan metropolis that is Mexico City in September 2023. Latin America is a very important region in the global AMBA network, as we accredit no fewer than 39 schools across the region.

Our annual conference for Latin American business schools provides a unique opportunity for the leading deans and directors from the very best institutions to network together, discussing and debating the key issues that will impact business schools in Latin America over the next three to five years.

Interestingly, this year’s conference was attended by approximately 30 deans and directors from Chinese business schools, reflecting the high value that our Chinese and Latin American schools place on building international partnerships with one another.

Mexico is recognised as being home to several of the finest quality business schools in Latin America and we are proud that all six AMBAaccredited schools in Mexico strongly supported the conference.

We discussed a wide range of key industry issues, including revolutionary changes to MBA programmes; establishing entrepreneurship across the entire business school; championing inclusion and celebrating differences in diversity; building business school partnerships within Latin America and globally; as well as identifying the latest international trends through research.

We also heard from LinkedIn on the networking site’s perspective on the future of

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Photo: Pro.Sto / Shutterstock.com

WHEN DELEGATES FROM ALL OVER THE WORLD WANT TO COMMUNICATE WITH EACH OTHER, THERE IS CLEARLY NO SUBSTITUTE FOR MEETING CONTACTS, OLD AND NEW, PERSONALLY.

work; then there were sessions on championing sustainability; embracing the future through digital transformation with AI; fostering collaboration between Latin America and China;

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and training the next generation of responsible AI entrepreneurs.

I continue to see a strong desire for deans and directors to return to physical, face-to-face conferences and events, while virtual networking and Zoom conferences still have a role to play.

When delegates from all over the world want to communicate with each other, there is clearly no substitute for meeting contacts, old and new, personally. Not only is the learning and sharing experience deeper in a physical conference setting, but crucial relationships can also be built through networking lunches and dinners.

This desire for personal contact is clearly reflected in the number of delegates who signed up to attend the conference: we welcomed our highest-ever number of attendees since we held our very first Latin America conference, in Buenos Aires, some 18 years ago. EG

For further information, please visit: www.mbaworld.com

LUXURY LIFESTYLE

Saint Barthélemy Tourism

The Beauty of St. Barthélemy St. Barths, also known as Saint Barthélemy, is a small island located in the Caribbean Sea. It is a popular destination known for its beautiful beaches, luxury resorts and vibrant nightlife, says Shannon Berkley. aint Barthélemy lies about 30 kilometres (19 mi) southeast of the island of Saint Martin; it is northeast of the Dutch islands of Saba and Sint Eustatius, as well as north of the independent country of Saint Kitts and Nevis.

The island offers a unique blend of French and Caribbean culture, with a range of activities such as snorkelling, sailing, and exploring charming villages. St. Barths is also famous for its high end shopping and world class dining experiences. The island attracts visitors from around the world who seek a luxurious and relaxing vacation in a beautiful tropical setting. The residents, known as SaintBarthélemois, are mostly descendants of the first settlers, of Breton, Norman, Poitevin, Saintongeais and Angevin lineage. In addition, there is also a large community of Portuguese emigrants mainly from the North of Portugal, of approximately 3000 people, and while French is the native tongue of the population, English is also understood in many hotels and restaurants.

On 19 March 1946, the people of the island officially became French citizens with full rights, although with few economic prospects on the islands, many men from St. Barthélemy had to seek work on Saint Thomas in order to support their families. Organised tourism and hotels began in the 1960s and developed from the 1970s onwards, particularly after the building of the island’s landing strip that can accommodate mid-sized aircraft.

The island soon became renowned as a high-class luxury destination, being frequented by numerous celebrities including Greta Garbo, Howard Hughes, Chevy Chase, Lorne Michaels, Steve Martin and Johnny Hallyday.

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The increase in tourist numbers subsequently led to a rise in living standards and rapid modernisation. International investment and the wealth generated by tourists play a significant role in the high standard of living on the island and tourism attracts about 200,000 visitors every year. As a result, there is a boom in housebuilding activity catering to the tourists and also to the permanent residents of the island. Seasoned travellers to Saint Barthélemy know that the best option for vacationers is to rent a private villa. Based on government statistics from 2020, the island has 850 villas available for rent on the island, with roughly over 1,800 bedrooms in total. Following five years of renovation, Hotel Rosewood Le Guanahani opened recently under the leadership of the Rosewood Hotel Group.

A STRONG PULL FOR TOURISTS Tourism now plays a significant role in the economy of St Barths and the island offers a range of high end accommodation including luxury resorts, boutique hotels and private villas. The island’s pristine beaches such as St. Jean, Flamands, and Colombier, are a major draw for tourists, offering crystal-clear waters and soft white sand.

Water activities are very popular in St Barths, with opportunities for snorkelling, scuba diving, sailing and yachting up for grabs. The island’s marine reserve located n the Colombier bay, is a must visit for underwater enthusiasts.

St. Barths also boasts a vibrant culinary scene, with a variety of gourmet restaurants and beachside cafes to explore. Visitors can indulge in French and international cuisine, often prepared with locally sourced fresh ingredients. Seafood is a highlight of

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the local cuisine, with fresh fish, lobster and shrimp being popular choices. You can enjoy delicious seafood dishes prepared in various styles, from grilled to ceviche. French cuisine is prominent in St. Barths, with many restaurants offering classic French dishes with a Caribbean twist. You can savour dishes like coq au vin and bouillabaisse, often made with local flavours. Local Creole cuisine is another culinary delight on the island, and you can try dishes like accras (deep-fried codfish fritters) and callaloo (a spinach type of vegetable stew).

IN ADDITION, AS IT IS A SMALL ISLAND AND THEREFORE BY DEFINITION NOT EXPANDABLE, THE CONDITIONS FOR BUILDING ARE INCREASINGLY RESTRICTIVE.

LUXURY LIFESTYLE

Saint Barthélemy Tourism Photo: Christian Graugart / Shutterstock.com

For those with a sweet tooth, it would be impossible to miss out on trying traditional French pastries and desserts and croissants, macarons, tarts satin and creme brûlée are all on the menu. The island has over 70 restaurants serving many dishes and others are a significant number of gourmet restaurants. In the early 1990s, the island had two cooking schools: the Saint Barts Cooking School which emphasises classical French cuisine and Cooking in Paradise which prioritises creole cuisine.

Shopping is a poplar activity for visitors seeking luxury and high-end goods. The island is renowned for its upscale boutiques and designer stores, offering a range of fashion, jewellery, accessories and home decor. Shopping in St. Barths caters to affluent buyers and prices for luxury goods can be higher compared to other destinations. Gustavia, the capital of St. Barths located on the western coast of the island, is a charming town known for its vibrant atmosphere, beautiful harbour and colonial architecture. Originally called Le Carénage, it was renamed in honour of King Gustav III of Sweden.

It is a hub for shopping and the picturesque streets are lined with a variety of upscale restaurants, cafes and high end shops, showcasing renowned international brands and local designers. From www.executive-global.com

Prada, Dolce & Gabbana, to Louis Vuitton, Dior, and Hermes—all of the major luxury brands are now present in the small town of Gustavia and Dior reopened recently after having been closed for many years.

A HAVEN FOR THE RICH AND FAMOUS One of the main attractions in Gustavia is its picturesque harbour, which serves as a hub for yachts and sailboats. You can stroll along the waterfront promenade, admire the stunning vessels and enjoy scenic views of the Caribbean Sea. Most places of accommodation are in the form of private villas, of which there are about 400 available to rent on the island. Saint Barthélemy’s tourism industry though expensive, attracts approximately 70,000 visitors annually to its hotels and villas; with another 130,000 people arriving by boat.

Gustavia is also renowned as a haven for yachting, with many big events being held there every year.

Some of these include the St Barths Bucket Regatta, the Saint Barth’s Cup and Les Voiles de St. Barth in April, and the International Regatta in May. Moreover, deep sea fishing also takes place from the waterfront of Lorient, Flamands, and Corossol to fish for tuna, marlin, bonito, barracuda and wahoo. The St Barth Open Fishing tournament

is held annually in July.

With Saint Barthélemy being a magnet for international celebrities and the wealthy, there is a high demand for luxury real estate, which drives up prices accordingly. In addition, as it is a small island and therefore by definition not expandable, the conditions for building are increasingly restrictive.

The property market in St. Barts has very few available properties. Gouverneur Beach is one of the most beautiful beaches in Saint Barthélemy, and wealthy homeowners have chosen to settle on this white sandy coastline bathed by a turquoise blue sea. Beautiful villas have been built here, offering remarkable views of the horizon. However, If you prefer to be at a higher altitude, the Morne de Vitet region is the perfect place for you. Located on the eastern part of the island, this commune is relatively undeveloped and it is the ideal place to live peacefully, out of sight and away from the hustle and bustle of tourism. There is also a wide range of building land available.

The country has a rich and diverse history but today retains its French influence and is known as a haven for the rich and famous. It has become a sought after destination for luxury travellers, offering a unique blend of Caribbean charm and French sophistication. EG Autumn-Winter 2023 •

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LUXURY LIFESTYLE

Property Investment

Multifamily & Turnkey Real Estate Investing The landscape of real estate investment in the United States has evolved significantly, offering a plethora of opportunities for a diverse range of investors. Particularly, multifamily real estate has garnered attention for its resilience and potential for steady returns, writes Rachel Smith. nvesting in multifamily real estate can be an effective way to quickly, expand your portfolio and earn more passive income. Instead of adding units one at a time, investing in a multifamily property enables you to add two, four, or even twenty units at once.

Having a large, diverse portfolio can also protect you from cash flow problems when voids occur and from economic downturns. There are distinct approaches with sophisticated, accredited, and professional investors in this realm.

Sophisticated Investors: Typically characterised by their extensive knowledge and experience in financial matters, sophisticated investors are adept at assessing risks and opportunities in real estate.

Their approach is often hands-on, with a keen eye on emerging markets and value-add properties. They tend to prefer investments that offer the potential for significant appreciation.

Accredited Investors: Defined by the SEC based on income or net worth thresholds, accredited investors have access to a broader array of investment opportunities, including private offerings. In real estate, they often invest in high-value properties or become part of limited partnerships that manage large multifamily complexes or commercial real estate.

Professional Investors: Usually institutional investors or individuals with a substantial amount of capital and a deep understanding of various investment vehicles. Professional investors often look for stable, long-term returns and might gravitate towards large-scale multifamily developments or high-profile commercial real estate projects.

Multifamily Real Estate: A Cornerstone of Diverse Portfolios - Multifamily properties, characterised by their ability to house multiple tenants, offer a unique blend of stability and profitability. These properties typically ensure consistent cash flow, a key attraction for all types of investors. They are particularly resistant to economic downturns, as the demand for rental housing remains robust.

Turnkey Residences: The Appeal of Ready-

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to-Rent - Turnkey properties have emerged as a favoured choice, especially among investors who prefer a more passive approach. These properties are renovation-ready or newly built, requiring minimal effort from the investor. They are particularly attractive to sophisticated and accredited investors who seek immediate rental income without the hassles of property development.

Commercial and Investment Real Estate: Expanding Beyond Residential - Commercial real estate represents a significant segment, offering diverse opportunities from office buildings to retail spaces. Professional investors, with their larger capital reserves and risk tolerance, are particularly active in this sector. They often engage in long-term investments, capitalising on the potential for both rental income and property appreciation.

COMPARISON WITH OTHER INVESTMENT AVENUES Stocks, Bonds, and Paper Assets: Real estate, particularly multifamily, offers a tangible asset that typically appreciates over time. In contrast, stocks and bonds are susceptible to market volatility. Real estate often provides a hedge against inflation, a feature less pronounced in paper assets.

Commodities: Like gold and oil, real estate is seen as a tangible asset. However, unlike

INVESTING IN MULTIFAMILY REAL ESTATE PRESENTS A COMPELLING OPPORTUNITY, ESPECIALLY IN THE CURRENT ECONOMIC CLIMATE MARKED BY INFLATION CONCERNS...

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commodities, real estate investments can generate rental income, offering both growth and income potential.

Cryptocurrencies: Representing the new frontier in investing, cryptocurrencies are known for their high volatility. Real estate, in contrast, offers more stability and is backed by a physical asset.

Business Investments: Investing in businesses or startups can offer high returns but comes with significant risk. Real estate offers a more predictable revenue stream, making it a safer bet for many investors.

THE ROLE OF REAL ESTATE IN HEDGING AGAINST INFLATION Real estate investing offers a unique blend of financial strategies and benefits, chief among them being the utilisation of leverage, the generation of cash flow, and the realisation of significant tax advantages. Each of these elements plays a vital role in the overall profitability and appeal of real estate as an investment vehicle, particularly in the multifamily sector.

LEVERAGE IN REAL ESTATE Leverage is a powerful tool in real estate investing. It involves the use of borrowed capital, such as mortgages or loans, to increase the potential return on investment. This approach allows investors to acquire properties that might otherwise be beyond their immediate financial reach, amplifying their investment portfolio’s growth potential.

LUXURY LIFESTYLE

Property Investment

Photo: dvlcom - www.dvlcom.co.uk / Shutterstock.com

their knowledge to make informed decisions in real estate investments, often in mid-range multifamily properties or joint ventures.

Accredited Investors: Meet specific SEC income or net worth criteria, allowing them access to a wider range of investment opportunities, including high-value real estate deals and private offerings.

They are likely to invest in larger, more lucrative multifamily or commercial properties.

Professional Investors: Typically represent institutional entities or possess significant personal wealth, enabling them to engage in large-scale real estate projects. They often have a strategic approach, focusing on long-term growth and portfolio diversification.

A MODEL OF EXCELLENCE IN MULTIFAMILY REAL ESTATE Blue Roc Premier stands out as a prime example of excellence in the multifamily real estate sector. As a privately held, fully integrated management firm, it focuses on multifamily opportunities throughout Florida and the Southeast. Blue Roc Premier’s success lies in its comprehensive approach, encompassing acquisition, management, and redevelopment, thus offering sophisticated, accredited, and professional investors robust investment opportunities in some of the most dynamic markets in the region.

Amplifying Returns: By leveraging, an investor can control a larger asset with a smaller initial capital outlay. This can lead to significantly higher returns on equity when property values increase.

For instance, purchasing a $500,000 property with a 20% down payment ($100,000) and a mortgage covering the rest can yield substantial returns if the property’s value appreciates.

Risk Management: While leverage can amplify returns, it also increases risk. A decline in property value can lead to a situation where the loan balance exceeds the property’s worth. Therefore, successful real estate investors use leverage judiciously, considering market conditions and their risk tolerance.

CASH FLOW IN REAL ESTATE Cash flow, the net amount of cash generated from an investment after all expenses, is a cornerstone of real estate profitability, especially in multifamily properties.

Rental Income: The primary source of cash flow in real estate investment is rental income.

For multifamily properties, this is often more stable and predictable, given the diversified tenant base.

The goal is to have a positive cash flow, where rental income exceeds expenses, including mortgage payments, maintenance, and property management fees.

Reinvestment Potential: Positive cash flow enables investors to reinvest in their properties, enhance their value, or expand their investment portfolio. It’s a vital component for long-term wealth building in real estate. www.executive-global.com

TAX BENEFITS IN REAL ESTATE Real estate offers numerous tax advantages that can significantly impact an investor’s net returns.

Depreciation: Perhaps the most notable tax benefit is depreciation, which allows investors to deduct a portion of the property’s value from their taxable income each year. This accounting method acknowledges the property’s wear and tear over time.

For example, residential properties are typically depreciated over 27.5 years, offering a substantial annual deduction.

Mortgage Interest Deductions: The interest paid on a mortgage for an investment property is usually tax-deductible. This reduces the taxable income, lowering the overall tax burden for the investor.

Property Tax Deductions: Real estate investors can also deduct property taxes paid on their investment properties, further reducing taxable income.

1031 Exchange: A 1031 exchange allows investors to defer capital gains taxes by reinvesting the proceeds from a property sale into a new property.

This can be a powerful strategy for portfolio growth.

Other Deductions: Other operating expenses, including repairs, maintenance, property management fees, and insurance, are also taxdeductible. These deductions can significantly lower the taxable income generated by the property.

KEY DIFFERENCES IN TYPES OF INVESTOR Sophisticated Investors: Are usually well-versed in financial matters but may not meet the wealth thresholds of accredited investors. They rely on

A BRIGHT FUTURE FOR MULTIFAMILY INVESTING The future of real estate investing, particularly in multifamily units, appears bright. Urbanisation, demographic shifts (like the rise in single-person households), and evolving work-life patterns (such as remote working ) continue to drive demand for multifamily housing. Additionally, the rise of technology in real estate, from property management software to virtual reality tours, is enhancing efficiency and accessibility in real estate investing.

CONSIDERATIONS IN PORTFOLIO MANAGEMENT Effective portfolio management in real estate involves diversification across different property types and geographical locations, regular performance assessments, and strategic acquisitions and disposals. Sophisticated investors often leverage real estate investment trusts (REITs) or real estate funds for diversification, while accredited and professional investors might engage directly in property development or large-scale acquisitions.

Investing in multifamily real estate presents a compelling opportunity, especially in the current economic climate marked by inflation concerns and technological advancements. Whether for sophisticated, accredited, or professional investors, the key to success lies in understanding the nuances of the market, leveraging professional expertise from successful firms in the industry, and employing strategic portfolio management practices. As the sector continues to evolve, it remains a bastion of opportunity for those seeking stable, long-term returns in the dynamic world of investing. EG Autumn-Winter 2023 •

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LUXURY LIFESTYLE

Patek Philippe SA

The Patek Philippe Grand Complications Tourbillon Moonphase The Patek Philippe Grand Complications watch is a highly regarded timepiece known for its intricate and exceptional craftsmanship, writes Cheryl Jones. t is part of Patek Philippe’s collection of complex watches, which includes features such as perpetual calendars, mon phases, chronographs and minute repeaters. These complications require meticulous engineering and craftsmanship to ensure their accuracy and functionality and Patek Philippe is renowned for its attention to detail and commitment to creating timepieces of the highest quality. It is widely considered to be one of the most prestigious watch manufacturers in the world and as of July 2023, among the world’s top ten most expensive watches ever sold at auctions, nine are Patek Philippe watches. The premium Swiss luxury watch manufacturer has an impressive client list, with Hollywood stars and world leaders including Vladimir Putin, Nicolas Sarkozy, Brad Pitt, Drake, and Kevin Hart counted amongst the celebrity owners of Patek’s sophisticated designs.

I

THE MOST LUXURIOUS WATCHES Patek Philippe is a company that believes complexity should never be at the cost of aesthetics and the Patek Philippe Grand Complications Tourbillon Moonphase timepiece is a remarkable watch that combines several intricate complications. It features a tourbillon, which is a mechanism that compensates for the effects of gravity on the watch’s accuracy.

The tourbillon is a mesmerising rotating cage that houses the escapement and balance wheel, constantly counteracting the gravitational forces that can affect timekeeping. This watch also incorporates a moon phase complication which displays the current phase of the moon on the dial, also adding a touch of celestial elegance to the timepiece. The moon phase display typically consists of a small disc that rotates to depict the different lunar phases.

High-quality tourbillon wristwatches, manufactured by the Swiss luxury watch industry, are normally very expensive, and typically retail for tens of thousands of dollars or euros, with much higher prices in the hundreds of thousands of dollars or euros being quite common. A recent renaissance of

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Photo: Hasan Zaidi / Alamy Stock Photo

SINCE 1932, THE COMPANY HAS BEEN OWNED BY THE STERN FAMILY IN SWITZERLAND AND REMAINS THE LAST FAMILY-OWNED INDEPENDENT WATCH MANUFACTURER IN GENEVA.

interest in tourbillons has been met by the industry with increased availability of timepieces bearing this unique feature, with the result being that prices for basic tourbillon models have reduced

• Productivity, Strategy, Profitability

somewhat in recent years. However, when it comes to authentic premium models, the 2016 model 6002G Patek Philippe Sky Moon Tourbillon Grand Complications watch with crocodile skin strap costs £7,003,577 Sterling ($8,500,000 USD), while the 2022 model 6002R Sky Moon tourbillon is priced at a mere £6,270,591.

QUALITY SWISS CRAFTSMANSHIP Since 1932, the company has been owned by the Stern family in Switzerland and remains the last family-owned independent watch manufacturer in Geneva. Patek Philippe is now one of the finest brands today. The Grand Complications Tourbillon Moonphase watch is a testament to Patek Philippe’s expertise in watchmaking and their dedication to creating timepieces of exceptional craftsmanship. The watch is a highly sought-after and prestigious timepiece that combines technical mastery with aesthetic beauty. EG

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LUXURY LIFESTYLE

Facilities Management

The Importance of Quality Industrial and Commercial Cleaning Industrial and commercial cleaning plays a crucial role in maintaining cleanliness and hygiene in various settings. These services are provided by professional cleaning companies that specialise in cleaning large-scale industrial facilities, commercial buildings, offices, and retail spaces, reports Thomas Hughes. ndustrial cleaning involves the thorough cleaning and maintenance of manufacturing plants, warehouses, factories, and other industrial settings. It often includes tasks such as floor cleaning, equipment cleaning, waste disposal, and specialised cleaning techniques to ensure compliance with industrial regulations and standards. Industrial cleaning jobs are typically significant undertakings that require not only strong chemicals, but specialised tools and equipment. A professional industrial cleaning firm can provide a wide range of services and benefits, including improved safety and increased efficiency, making it a smart choice for any business looking to maintain a clean and productive facility.

Keeping a manufacturing facility or warehouse clean can be challenging due to the constant presence of heavy machinery, dirt, and other materials that can create a buildup of grime and debris.

Commercial cleaning is more than just bleach in a bucket and there are safety protocols and standards that must be met in order to ensure all jobs are done correctly and thoroughly to ensure the safety of anyone entering the site.

Commercial cleaning focuses on maintaining cleanliness in commercial spaces including offices, retail stores, restaurants, hotels and healthcare facilities. Services involved typically include general cleaning tasks such as vacuuming, dusting, mopping, restroom cleaning, window cleaning and trash removal.

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WHY SPECIALISED CLEANING FIRMS ARE ESSENTIAL FOR YOUR BUSINESS TODAY VIP premises require not only ideal results in making the perfect first impression, but a highly meticulous approach. When it comes to luxury real estate, you cannot simply trust any random cleaning firm, especially since not all cleaning companies have experience in maintaining precious designs, know the true value of your sculptures, modern furniture, prestige automobile or your priceless art collection. It would be foolish to entrust your expensive furnishings, rare art pieces and more

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Photo: Gorodenkoff / Shutterstock.com

WHEN IT COMES TO KEEPING YOUR BUSINESS RUNNING EFFICIENTLY, YOU CANNOT AFFORD TO SKIMP ON THE IMPORTANT CLEAN-UP TASKS, AND THAT’S WHERE THE PROFESSIONALS COME IN.

to cleaners who are not trained to handle such valuable items. Specialised providers of cleaning services for luxury homes and commercial premises who have a proven track record, promise to protect

• Productivity, Strategy, Profitability

your biggest investment and are therefore worth every penny. Choosing the right company to assist in the immaculate presentation of a luxury home to prospective buyers, could make or break a sale.

Professional cleaning providers are able to provide a service that is radically different from standard cleaning companies, specialising in the cleaning and maintenance of properties with standards that are on par with the finest palaces in the world. Elite providers of luxury cleaning services include Preferred Cleaning Service, Inc., the London Management Company, The Mayfair Cleaning Company and Jani King International.

When it comes to keeping your business running efficiently, you cannot afford to skimp on the important clean-up tasks, and that’s where the professionals come in. These companies have years of experience handling all sorts of jobs and can get everything clean and organised without causing any damage or inconvenience. EG

ABBOTSFORD

WHERE YOUR NEXT SUCCESS TAKES PLACE

$1.8 BILLION in annual agricultural acitivity

current population of

151,923

CITY OF ABBOTSFORD ECONOMIC DEVELOPMENT caed.abbotsford.ca | abbotsford.ca @AbbotsfordEcDev

/CAED.Abbotsford

1 MILLION passengers boarded Canada’s fastest growing airport, YXX

90 PERCENT of the population has access

to a fibre optic network

Private Island Oasis Nestled amidst the picturesque Muskoka lakes, Bass Island stands as one of the largest privately held islands in the region. This iconic island presents a rare opportunity to establish the ultimate family compound, destined to be cherished for generations to come.

Divided into three lots, with the potential for two additional lots, this meticulously redesigned contemporary cottage offers luxurious living at its finest.

With a total of six bedrooms, encompassing an impressive 7,339 square feet of living space, this property exudes elegance. Professionally decorated, the interior boasts floor-to-ceiling windows and doors, granting breathtaking waterfront views from every bedroom.

The custom kitchen is a culinary enthusiast’s dream, featuring topof-the-line appliances, and exquisite marble tiles. The sunken living room is an inviting space, while the Stuv wood-burning custom fireplaces create a warm ambiance. Additionally, a full spa awaits, complete with a pool equipped with swim jets, a hot tub, cold plunge pool, sauna, steam room, and a massage shower.

Located just minutes away from East Bay Landing, the property offers convenient access to a slip and car park. It is also in close proximity to MORTIMER’S Point Marina, providing additional options for boating enthusiasts.

The property boasts a helipad, and a 3+ slip boathouse with living quarters. A tennis court, accompanied by a viewing gazebo, is the perfect setting for friendly matches. Commanding views, extending from sunrise to sunset, offer a captivating panorama.

BEDS 6

BATHS 7

SQ. FT 7,339

Price available upon request

Ben Imrie

Dan Imrie

(705) 706 2099 ben@imuskoka.com

(705) 644 2475 dan@imuskoka.com

SALES REPRESENTATIVE

SALES REPRESENTATIVE

iMuskoka.com

BEAUTIFUL IS RELENTLESS

Aston Martin Geneva, Pegasus Automotive Group SA, Route de Saint Cergue 298, Nyon 1260, Switzerland T. +41 22 36 38 007, F. +41 22 36 38 017, sales@astonmartingeneva.ch, www.astonmartingeneva.ch Indicative fuel consumption figures in litres/100km (mpg) for the 2020 MY Aston Martin DBX: urban 12.2 (23.1); extra urban 13.5 (20.8); combined 14.3 (19.7). CO2 emissions 269g/ km. The mpg/fuel economy figures quoted are sourced from regulated test results obtained through laboratory testing. These figures are strictly indicative and preliminary and are for early comparability purposes only and may not reflect your real driving experience, which may vary depending on factors including road conditions, weather, vehicle load and driving style. These early prototype figures are intended for indicative comparability purposes.

This vehicle is not yet for sale and this information is based on a prototype. The fuel consumption you may achieve under real life driving conditions and CO2 produced will depend upon a number of factors including the accessories fitted after registration, variations in driving styles, weather conditions and vehicle load. The official figures for this vehicle will be released prior to and accompanying this vehicle being made for sale to the public. This information will be updated as testing continues.