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www.executive-global.com | Autumn 2015

EXECUTIVE GLOBAL Productivity | Strategy | Profitability

RENE BANGLESDORF

Five things to consider before buying an aircraft

JAN VAN BUEREN

Selecting the right MFO for affluent families

PETER SCHIFF

Provides analysis on the US financial markets

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FABIAN CALVO

Looks into critical aspects of business strategy

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CONTENTS

AUTUMN 2015

EXECUTIVE GLOBAL

40

24

20 EDITOR-IN-CHIEF John Marshall

HEAD OF PRODUCTION Peter Green EDITORIAL Thomas Hughes, Rachel Smith ART DIRECTION & DESIGN Lucy Reid BUSINESS DEVELOPMENT Steve Williams, David Warmann, Jack Moore, David Goldwin, Mike Walsh COMMERCIAL DIRECTOR Luke Francis PHOTOGRAPHY James Drake, Sarah Dean Executive Global Magazine is published by: Stormcues Limited 405 Kings Road Chelsea London SW10 0BB Tel: +44(0)207 993 4782 www.executive-globalcom 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. Copyright © 2015 Stormcues Limited. All rights reserved.

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EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

COVER FEATURE

The Hat Trick Letter

Building global growth

Dr Jim Willie’s analysis on the US and Global financial markets, explores interest rate derivatives, and the Yen Carry Trade.

Our cover feature and CEO Profile looks into the exciting world of venture capital for business in an exclusive interview with Julie Meyer, CEO of Ariadne Capital and founder of EntrepreneurCountryGlobal.

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London Investor Show Our partnership with the premier event for private investors and active traders, enables exclusive offers to all readers of Executive Global.

The punch bowl stays

STRATEGY Business in the New Economy

20

Executive Global’s bespoke series of interviews on Productivity, Strategy, and Profitability with a leading executive. Fabian Calvo, CEO of The Note House gives us his insight on business strategy.

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Bleyer Bullion’s Caroline Peers takes readers on a tour of monetary history, drawing parallels with contemporary economic trends.

Gold – a vital diversification Mark O’Byrne of Goldcore looks into why diversification into gold is crucial for any discerning investor.

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22 28

Family Office Services Switzerland 30 Jan Van Bueren outlines the importance of wealthy families selecting the right MFO provider.

A timeless investment

FINANCE Seven stages of empire

Peter Schiff delivers a thorough analysis of the US financial markets and mainstream economic forecasts.

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Adrian Day explains why gold is so attractive to investors.

Commodities are dead Dan Oliver, CMRE, gives an exclusive insight into commodities and their significance in modern-day economic analysis.

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CONTENTS 46

AUTUMN 2015

EXECUTIVE GLOBAL

60

38 Lord Monckton of Brenchley Christopher Monckton indicates problems with contemporary monetary and banking policies, and what steps may be taken to improve the state of the global economy.

36

Connie Ronn, Relocate Consulting 2000, takes a look at talent mobility and relocation in Spain.

Charlie Bravo Aviation

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Reggie Middleton, CNBC, Bloomberg, and CNN-renowned financial analyst and CEO of Veritaseum, takes an exclusive look at the impact of Quantitative Easing on the Nordic states.

Rene Banglesdorf highlights important considerations to take into account when purchasing an aircraft.

Melbourne Business School

Guy Saunders looks at increasing global performance through leadership development, highlighting the value in the partnership between Melbourne Business School and Nestlé Malaysia/Singapore.

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An insight into some of the attractions and advantages that make Missouri the ideal location for international investment.

Swiss lump sum taxation

42

Sabine Baerlocher of Active Relocation, explores the flat-rate taxation system in Switzerland, in addition to potential benefits.

Doing business in Switzerland

44

Michael Shrum on pertinent issues surrounding company formation and business in Switzerland.

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EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

48

Distinct Crew Management Dr Birgit Friedrich explains how executives can counteract the effects of burnout.

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HNW LIFESTYLE

Luxury Property Showcase Shanghai 58

50

IAE-AIX School of Management 52 Carolina Serrano discusses the importance of leadership skills for future executives, and MBA tuition at the IAE Aix-Marseille Graduate School of Management.

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Xu Xinzhong looks at practical action learning, and the distinct features that contribute to the Lingnan MBA’s position as one of the most sought-after programmes in South China.

EXECUTIVE EDUCATION

FDI & INWARD INVESTMENT Wouldn’t it be nice in Missouri?

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EDITOR’S NOTE Foreword

EXECUTIVE GLOBAL Editor’s Note

Entrepreneurship and wealth creation Entrepreneurs are a critical asset to the global economy and a driving force ensuring its continual growth and prosperity. However, the fundamental role and importance that entrepreneurship plays in grass-roots capital formation, sustained innovation, and as a means of marketplace productivity, can, and has often, been overlooked on the global stage. hether it be through tax-efficient structures for business, or strategic planning for wealth creation, to executive leadership and effective management, enterprises that enable new businesses to survive and thrive, thus fostering greater economic output in our integrated, and increasingly technologicallyreliant global economy, can be as significant as the very medium of exchange that is utilized in all commerce. Among other factors, state interventionist economic policies such as Quantitative Easing, deployed as a means of curbing rampant inflation by national governments worldwide, have meant that the management of capital at the national level has never been so widely or closely scrutinized, as in the post-2008 financial era. Following bank runs and capital controls, more recent events in Greece have certainly provided some investors with food for thought; perhaps there is an inextricable link between financial sovereignty, wealth creation, and preservation? Portugal, Ireland, Italy, Greece, and Spain have experienced financial problems in relation to the Euro, and the white elephant of supranationally (and domestically) imposed austerity measures that increasingly contradict all national aspirations of economic prosperity and capital growth, have been highlighted- albeit briefly. Taking this into consideration, it would certainly be the case that diversification into multiple asset classes as a means of mitigating potential financial risks posed by multilateral currency defaults in the future, may be prudent. Moreover, another problem looms on the horizon; what can a newly-retiring generation of babyboomers do to maximize returns in an increasingly volatile market, paved with negative and zero-interest rate policies? With the emergence of the Asia Infrastructure Investment Bank, and the increasing co-operation of the BRICS nations, it is becoming increasingly evident that as new geopolitical alliances, partnerships, and bi-

W

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EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

lateral trade agreements are formed, there will inevitably be winners and losers positioned on either side. Executive Global magazine takes readers on a highly informative, and insightful tour of the developments shaping our global economy, in addition to the impact these developments may have on executives worldwide, and the subsequent strategies that may be adopted in their wake. Guided by expert opinion, and supported by leaders in their field, the magazine provides a platform that aids in the effective management of business, people, and revenue, whilst providing an objective view on geopolitical affairs, the global financial, and capital markets. Donald Trump’s recent campaign for political office in 2016 has highlighted a highly significant concept. Maybe it is not the diplomats and heads-of state who hold the answers, but the very executives, to whom the formation of capital and successful business growth lie at their very core, who will be able to provide the real solutions to problems posed by the derivatives market, baby-boomer retirement portfolios, and dwindling financial prosperity in an era of austerity? Perhaps it is not the economists, technocrats, or political leaders, but the entrepreneurs of the world who will be best equipped to solve the problems caused by the next crisis, by going back to the basics and cultivating a fertile breeding ground for the sustained growth of three fundamental elements that affect all business and economic prosperity worldwide: Productivity, Strategy, and Profitability. EG

John Marshall

John Marshall Editor-in-Chief, Executive Global


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FINANCE

Bleyer Bullion

The stages of economic collapse and gold We first examined this issue back in 2013. Now at the beginning of 2015 the original article is truer than ever. Today Jennie re-examines this Cycle, looks at where we are now and what you can do to take responsibility in your own Wealth Protection.

Article by

Caroline Peers MANAGING DIRECTOR, BLEYER BULLION

very Empire lives through seven economic stages, and then it falls. It is as predictable as the cycle of days of the week or the moon and the sun. One of the financial commentators who most clearly explains this process is, in our opinion, Mike Maloney. Maloney believes that “the world is going to have a new monetary system in this decade that we’re in. We’re going to experience this huge deflationary crash around the world. People will just lose confidence in currency. And what do they always go back to throughout history? Time after time for the last 5000 years actually.... Gold and Silver. It always plays out in seven stages. It always ends with Gold delivering a knock-out blow to debased currencies.” Maloney’s superb video presentation of 30 minutes builds on Dmitry Orlov’s mapping of the fall of the USSR in his earlier book “Reinventing Collapse” (2008) which I first reviewed back in 2013. Orlov, a Russian-American engineer and economic writer, identifies five stages of societal collapse which occur alongside economic collapses.

E

SEVEN STAGES OF EMPIRE Another commentator who over-views this cycle perfectly is James Turk: “In a world of floating currencies and that’s what all national currencies are today, they bob up and down relative to each other but they’re all sinking relative to Gold. That includes the dollar as well as the Euro, and the British pound, and all the others. They’re going to

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continue to lose value. They’re going to continue to lose purchasing power.” Maloney states that he does not personally think there is a way to “avoid what’s coming, there’s no a way to fix it right now. There’s only a way to let it wipe you out or to benefit from it.” So, to re-assess what we examined in 2013 almost two years on, the Seven Stages of Empire are: Stage 1: The Empire has ‘good money’ backed by Gold and Silver Stage 2: Social programs and public works develop Stage 3: Political influence grows. Massive military build up to protect this influence Stage 4: Puts military to use. Expenses increase, so taxes go up Stage 5: To pay for these expenses, the government begins to take the wealth of its people by stealth through either: • debasement of its currency and/or • the creation of fiat currency which can be created in unlimited quantities • what it can’t raise by taxes, it borrows Stage 6: This debasement in currency is sensed by the general population. A loss of faith in government and currency occurs. Stage 7: An end mass-movement out of the fiat currency into precious metals, causing end of paper currency and hyper-inflation. It is now very clear to see that the world is squarely within Stage 6. Personally, over the last18 months, it feels as if we are in a holding pattern in this Stage now. All the natural fundamentals in the markets seem to be artificially held down, white-washed, and the free market price of Physical Gold and Silver suppressed in relation to their paper price (ETF’s etc.) There is always a silver lining, excuse the pun. This has created an elongated buying opportunity for our more savvy clients to

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

position themselves in Physical Gold and Silver before Stage 7 begins. The following article was published in The Telegraph on Saturday 13th of August, 2011. It is what we have been describing to our clients via our Gold and Silver Education through blogs and articles for several years. It’s well worth a read together with the comments providing an educational discussion afterwards: “The 2008 crisis represented the first recognition that those increases in asset prices and economic growth were chimerical. The recent relapse represents a recognition that the losses have merely been transferred on to sovereigns’ balance sheets. But what next?” THE WEALTH EFFECT Also, back in 2013, Speaker John Bimelow had this to say at the Gold Rush GATA Conference at the Savoy London at which a representative of Bleyer Bullion was in attendance: “The Wealth Effect is an economic term which refers to an increase in spending that accompanies an increase in perceived wealth. People tend to spend more when one of two things is true. Either when people are actually richer, or when people perceive themselves to be richer. To explain, the assessed value of a family’s home increases so they perceive themselves to


FINANCE

Bleyer Bullion everyone into the Physical Bullion market to position and protect their wealth, whether that is a few thousand pounds up to millions. We have noticed over the past few years a considerable growth in new clients; people who have never considered buying Physical Gold and Silver before. In 2012 alone about 80% of our clients for first time buyers. In 2013 – the year I originally began to look at and publish these Stages of Empire – Bleyer experienced a 29% increase in Sales and a 60% increase in clients storing with us, all of whom continue to store with us today in 2015.

be wealthier. The banking system offers them extended credit facilities and they begin to spend. In reality, the family is no richer. They have not increased their estate by their efforts, their education, or by doing more work – it’s all down to perception. All that is happening is the family perceives wealth and spends capital like its real wealth when in fact it is debt.” John Bimelow closed by saying that all bullion based investment vehicles must be 100% backed by the commodity (physical gold or silver) or you are only investing in contracts, concluding that what is about to happen is a transfer of wealth. “If you’re not in gold and silver then you’re on the wrong side of the trade.” We at Bleyer are in full agreement and this is why we only trade in Physical Metals, not certificates. Bloomberg published an article last June stating that the ratio of physical Silver to SLV certificates is a staggering 250:1. Four years ago it was 100:1. This means today if 250 investors who held the same amount of SLV certificates wanted to take delivery of their Metal, only 1 would receive it. This is why we believe so strongly in owning your own Physical Gold and Silver. David Morgan outlines this consequences of the idea of perception of wealth in Maloney’s Seven Stages of Empire video : “In 1965 silver was

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EVERY EMPIRE LIVES THROUGH SEVEN ECONOMIC STAGES, AND THEN IF FALLS. IT IS AS PREDICTABLE AS THE CYCLE OF THE DAYS OF THE WEEK OR THE MOON AND THE SUN. debased in the United States so that silver content in currency went from 90% to zero. Instead they put out something in a Gold or Silver looking form. For me it’s at a subconscious level. Why are they making them (coins) gold coloured? Why are they making them silver coloured? I think there’s an inherent knowledge in the human specie that knows Gold and Silver have value. So if they look in their pocket and then see something gold or silver coloured, it gives them kind of a warm fuzzy feeling. But there’s NO value in these coins REALLY.” We at Bleyer Bullion strongly believe in helping

PROFESSIONAL AND APPROACHABLE We are a straight forward, professional and approachable team who encourage our clients to take responsibility in their own research and choice of products. We can advise on which products will save you both V.A.T and Capital Gains Tax in the UK and how each product can work for you. We offer both Secure Storage in England and off-shore, and a range of secure home safes. To find out more call the Bleyer Team on 01769 618618 and begin to transfer out of paper currency into the historic store of wealth that is Physical Gold and Silver. We offer a wide range of Gold and Silver pure bullion bars and coins from as little as approx. £15 per coin to tens of thousands per bar. We work with clients from a variety of financial backgrounds and hold your discretion and bespoke customer are in high regard. I’d like to leave you with a quote from a Greek writer, when he saw the debasement of his own currency, back in 405 BC to show how timeless and repetitive this Cycle of Currencies really is. This extract is from “The Frogs”, a comedy written by the Ancient Greek playwright Aristophanes. It was performed at the Lenaia, one of the Festivals of Dionysus in Athens, in the same year. It could be as true of the debasement of all world currencies today as it was then: “I have often noticed that there are good and honest citizens in Athens, who are as old gold is to new money. The ancient coins are excellent in point of standard; they are assuredly the best of all moneys; they alone are well struck and give a pure ring; everywhere they obtain currency, both in Greece and in strange lands; yet we make no use of them and prefer those bad copper pieces quite recently issued and so wretchedly struck. Exactly in the same way do we deal with our citizens. If we know them to be well-born, sober, brave, honest, adepts in the exercises of the gymnasium and in the arts, they are the butts of our contumely and we have only a use for the petty rubbish, consisting of strangers, slaves and lowborn folk not worth a whit more, mushrooms of yesterday, whom formerly Athens would not have even wanted as scapegoats.” To position yourself in Physical Gold and Silver NOW before we move out of Stage 6 into Stage 7, call or email the Bleyer Team. EG

For further information, please visit: www.bleyerbullion.co.uk

Autumn 2015 • EXECUTIVE GLOBAL

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FINANCE Goldcore

Why gold is a vital diversification for today “Gold can serve as a hedge against declining values of key fiat currencies.” These are not the words of some so called ‘gold bug’ warning that currencies are set to collapse in value. Rather, they are part of the recent findings of the UK’s influential and respected Chatham House or the Royal Institute of International Affairs.

Article by

Mark O’Byrne

THE KEY TO SUCCESSFUL LONG TERM INVESTING IS DIVERSIFICATION AND OWNING A RANGE OF DIFFERENT QUALITY ASSETS.

HEAD OF RESEARCH AND EXECUTIVE DIRECTOR, GOLDCORE

Holding gold – the world’s only independent currency – gives you some protection against the incompetence and idiocy of Europe’s bickering politicians. So keep it.” The second quotation is from one of the most respected financial experts in the UK, Merryn Somerset Webb. Chatham House and Somerset Webb are part of a growing consensus about the importance of having an allocation to gold as part of diversified investment and pension portfolios.

IMPORTANCE OF REAL DIVERSIFICATION “Tis the part of the wise man to keep himself today for tomorrow, and not venture all his eggs in one basket” – Cervantes in Don Quixote in 1605 The key to successful long term investing is diversification and owning a range of different quality assets. Gold has been shown to enhance returns and to reduce overall volatility over the long term. This was clearly seen during the financial crisis when gold was one of the very few assets to surge in value. The importance of owning gold has been shown in numerous academic papers. It has been shown in independent research by the asset allocation specialists, Mercer Consulting and Ibbotson Associates. It has also been shown by consulting group, New Frontier Advisors. Chatham House concluded in their recent report that gold may “continue playing a significant role in the international monetary system, serving as a valuable hedge and safe haven, particularly in times when tail risks predominate”. A 10 per cent allocation to gold is prudent in these uncertain times and a way to hedge falls in stock, bond and property markets. It is also a way to hedge the possibility of bail-ins or deposit confiscation and of course currency devaluations. The historical record also shows how gold has protected people from stock and property crashes.

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Gold protects people from inflation and currency debasement and has served as a vital wealth preservation tool. We are living in volatile times and investors face challenges in the coming years – the Euro zone debt crisis is far from resolved. Debt crises tend to lead to currency devaluations and currency crises. Smart money in the form of wealthy individuals, pension funds, companies, endowments, charities, foundations, family offices, hedge funds and central banks are diversifying into gold today.

It is not just the wealthy that are buying gold. There is broad based global demand. In particular, interest from China, India and the rest of Asia has grown very significantly. The growing middle classes and very wealthy in Asia trust in gold as a better store of value than paper currencies. Greater demand from investors and central banks globally will see gold prices rise materially in the long term. Gold is likely to double to over $2,400/oz in the coming years due to a doubling in Chinese, India and Asian demand and global investment demand. EG

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

GOLD IN EUROS – 5 YEARS

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

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FINANCE

The Hat Trick Letter

The US Dollar enters the end game The Hat Trick Letter deals with the important events of the day, which point to the return of the Gold Standard, but not without a bitter fight to the end. Article by Dr Jim Willie, Carnegie-Mellon-trained Economist and Founder, The Hat Trick Letter he prevalent problems pertain to unsound money, as in debt coupons used as money, to continuous banker welfare and refusal to liquidate the big dead banks, to usage of hyper monetary inflation to cover US Govternment debt in a hidden Wall Street bailout, to abuse of sanctions against any and all nations wishing to discard the corrupt toxic US Dollar, and to reliance upon war to defend the US Dollar in a global infrastructure manner. The End Game was entered some time between October and November, as final chapters are unfolding. The United States is pushing Western Europe into the abyss, so that the US is not alone in ruin. No recovery in the US Economy has happened, not in corporate capital expenditure, or in the housing market. Job losses are an avalanche. These are very dangerous times, especially for the preservation of wealth.

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PRECIOUS METALS No gold metal has been delivered on a COMEX futures contract since July 2012. The market is corrupted beyond description. In the last two years, amidst shadows of murder acts, Scotia Mocatta has been supplying Wall Street banks with the last vestiges of gold bullion metal from Canada. At the same time, the COMEX has been raiding the GLD fund. The game is almost over, which will result in the termination of gold futures contracts altogether in the US market. Great competition has come from the East, especially Shanghai, where they actually deliver gold metal in contract settlement. A split price effect has been evident for almost a year, with premiums paid in Asia for actual gold purchases. The premium varies around 5% to 10% on small quantities, but ranges from 30% to 50% on very large quantities. The gold market is bifurcated. If an equilibrium is pursued to achieve balance between Supply & Demand for Gold, then the price must double. It is that simple, and China

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will ensure it happens. The hidden sources of gold are drying up. London cannot serve up the gold bullion, since largely empty. The hidden lines from the Vatican and Basel have hit the wall, more from unwillingness than vacated supply. ECONOMICS The US Economy, Western European Economy, and even Global Economy are suffering from an acute problem. The Quantitative Easing is killing capital. The bond purchase programs by central banks are actually hyper monetary inflation, called good, blessed as good, but are actual toxic administrations of monetary dispensation. Worse, it is directed mainly at official debt coverage and bond redemption, not economic development, not capital formation, not corporate expansion. It is killing capital, since the natural response is to invest in hedging strategies to compensate for the utterly destructive flow of baseless new money creation. The higher cost structure is a direct result, which causes profit margins to vanish. Then comes the shutdown of business segments, if not entire small and medium businesses. The additional shock of the lower oil price has resulted in large segments of the economies to shut down. Next comes the subprime debt crash from the oil sector, the car sector, and the student sector. All are propped by poorly underwritten debt, done in desperation. The global economy is moving toward breakdown, even apart from the US West Coast port controversy. INTEREST RATE DERIVATIVES The USGovt debt supply is not under control, hardly in reduction, and not covered by bond demand. The global bond investors have been essentially under a boycott for over a year. The major buyer of USTreasury Bonds has been the US Federal Reserve with its enormous purchase program. Their balance sheet has reached $4.5

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

trillion of toxic sludge paper. The entire USTreasury Bond market is suffering from a dry dock problem. Buyers have largely left the room, since the USFed is the dominant player. Other players are in the room really just to dump to the USFed than rather than to buy anew. The pressure on bond dealers is great. With huge supply and almost no demand, few analysts question why the bond yields are not rising, like they did in Southern Europe in 2009 and 2010. The answer is interest rate swap derivatives, which are in astronomical usage. Trillions of $$$ worth of such derivative contracts have been fabricating phony bond demand when none exists from investors. The JPMorgan incident involving the London Whale exposed the phony demand in May 2012, but the story went away, except for banker murders to hide the trail. The Zero Interest Rate Policy will not end, since its free money input is critical for continuing the interest rate derivative game, to fabricate ongoing demand for USTBonds. The United States has entered the Third World in a monetary sense, among


FINANCE

The Hat Trick Letter

exchange rate rises (not from strength) due to liquidation of Petro-Dollar derivatives tied to the FOREX currency market, and due to safe haven taken from falling Emerging Market economies, the entire Global Economy is suffering. The hidden factor hardly discussed lately has been the fast rising debt by smaller nations, whose debt was racked up on the low rates, but which burden is rising from the higher USD value. Debt is accrued and denominated in USD terms. The Swiss National Bank (their central bank) turned up the heat and really opened the gates of hell. The European continent is a bigger mess, with their own Swiss Carry Trade going into reverse, their economy turned upside down, their banks cutting back and going so far as to prevent redemption of cash accounts, and more. The Japanese have been targeted by the US Dept Treasury for their $1.2 trillion official pension fund. As the US Fed announced a halt to QE, suddenly the Japanese announced an unlimited QE of their own, while the US demanded to seize their pensions. The carry trades are all unwinding and fracturing. Work and industry used to be the province of the West, but not in the last 20 years. It has been carry trade and arbitrage, now outright monetary expansion without any hint of sterilization. Inflation kills all, and always has, a forgotten lesson. Gold will arrive on the white horse once again, to look over the ruins.

others. The dependence upon the printing press to monetize its government debt is a screaming signal of the collapse in progress. This is what Zimbabwe did. The exceptional nation, the US coerces nations not to discard the USDollar by means of sanctions, war, and SWIFT obstacles. CARRY TRADE RELIANCE The carry trades are prevalent. The Yen Carry Trade was the dominant carry trade from 1990 to 2010. From 1996 to 2003, the Wall Street bankers conducted a Gold Carry Trade, where the 0% lease rate enabled vast ransacking of Fort Knox in the name of banker profit. Clinton & Rubin as well as the big investment banks made a cool couple $trillion in profit as they depleted the US national gold reserves. Since the 0% was installed by the USFed in 2009, the US has been the base of the Dollar Carry Trade. Money is borrowed for free, and invested in whatever is hot. Unfortunately, no market is hot, except war, inventory liquidations, and bankruptcy counseling. As the USDollar

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THE US ECONOMY, WESTERN EUROPEAN ECONOMY, AND EVEN GLOBAL ECONOMY ARE SUFFERING FROM AN ACUTE PROBLEM. THE QUANTITATIVE EASING IS KILLING CAPITAL.

FINANCIAL MARKETS Not a single major financial market exists in a true sense anymore. All are controlled, either with derivatives or participation from the US Fed or other major central banks. Even flash trading helped to prop up asset prices in a revolving platter. The central banks are working feverishly to prevent a global systemic collapse. The reliance upon war is a final stage signal which few recognize. The Jackass does, and in fact, back a few years ago, it was forecasted that when the US Dollar faces the gallows, the retirement, the dustbin, the US Govt will turn to war as the ultimate defense. As each day passes, it becomes more clear that the opposition to Russia and China is based upon their rejection of the US Dollar, just like Iraq and Iran. The Gold Standard will return, but through the trade corridor. It will be forced upon the FOREX currency windows. The East controls global trade, while the West controls financial markets. The solution to the chronic untreated Global Financial Crisis, filled with raids on assets, is the return of the Gold Standard. The Price of Gold will someday before long double, then triple. The Price of Silver will follow and triple, then quadruple. The return of legitimate money will be the requirement and calling card for Gold & Silver as monetary metals. The brief generation of straying with fiat paper currency will come to a tragic end, its legacy being abandoned industry and rise of war. The banker cabal is gradually being subdued, corralled, and squelched in influence. EG

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

Autumn 2015 • EXECUTIVE GLOBAL

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PRODUCTIVITY STRATEGY PROFITABILITY

STRATEGY

The Note House

Interview with

Fabian Calvo CEO, THE NOTE HOUSE

Business strategy in the new economy

In our exclusive interview on Strategy with FABIAN CALVO, CEO of The Note House, Executive Global gain a fundamental insight into some of the techniques that senior level executives globally can deploy to maintain a competitive edge within the world’s rapidly changing economic, and geopolitical landscape. How do you think the era of economic austerity, zero interest rate policy, (ZIRP) and financial hardship has affected executives, and what strategies do you think they can deploy to maintain customer loyalty? I think with the financial uncertainty facing FC global financial markets customers want to hear no spin truth, meaning many recognize that the old way of investing is changing due to rampant market manipulation at the hands of central planners in Washington, London and Brussels. EG

What critical elements of entrepreneurial strategy do you teach to your students to ensure that they remain self-reliant, resourceful, and strategically competent? I think the two biggest strategies or FC philosophies that I teach are 1. Always being resourceful. As a entrepreneur or high level executive we are always dealing with problems, or potential opportunities that we’ve yet discovered how to take advantage of. Being resourceful allows you to keep your options open while allowing you to come up with new and creative ways to prosper. 2. Fail forward. Don’t be afraid to fail, it’s going to happen, and the lessons learned in failure many times can be more valuable than a degree at Harvard. EG

If you had to name one fundamental strategy that every executive should deploy to maintain a competitive edge in their business, what would that be? EG

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Always learn about your industry or niche. We live in a rapidly evolving world and those not working to stay ahead of the curve will definitely get lost among the sea change that is on the horizon. FC

Are there any similarities here with the approach that you deployed throughout your successful career in real estate? Yes I think there are. I’ve changed my FC investment strategies along with the changes in the real estate market several times. If I hadn’t done so I would have been completely wiped out financially like so many others in the last real estate crash. For example moving away from longer term investment and focusing on simply trading the value in properties on a short term basis has made the biggest impact on my business. The bottom line is that markets change, be sure to change with them. EG

Where do you feel the next opportunity EG for growth in real estate and business will come, and how can executives align themselves strategically to benefit? I believe the current real estate market is FC starting to get overheated. There is definitely value out there in all price ranges and property types however it would be prudent to focus on the short term profit potential of a deal instead of taking a longer term approach. I feel we could see another significant leg down in both equities and real estate in the next few years presenting an incredible opportunity for educated real estate investors.

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

Do you feel there are common techniques that executives can deploy in the application of the strategies learned from The Resourceful Real Estate Academy, with other asset classes? Well certainly being resourceful is one of FC the biggest characteristics of most of the successful people I have met in my life. EG

Tell us more about the highly successful ‘’Fabian Calvo Podcast’’. The Fabian Calvo Podcast is a daily show FC that focuses on entrepreneurship. I do my best to educate listeners on economics and geopolitics and how all these topics are connected in some way. My hope is that listeners walk away with an open mind about the possibilities in the world today but without wearing rose coloured glasses. EG

What common methods do you feel company executives around the world should deploy to attain greater financial independence and prosperity? I think the best method is to recognize we FC live in a world that is fundamentally changing, and changing quickly. Executives who can work to stay ahead of the curve will be the ones who thrive in the new economy. EG EG

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


Those not working to stay ahead of the curve will definitely get lost among the sea change that is on the horizon.


FINANCE

London Investor Show

The UK’s premier event for private investors and active traders

For Investors. For Traders. For Market Participants.

Are you an investor? A trader? Then you need to know that this year’s London Investor Show takes place on Friday 23rd October – bringing together the stock market under one roof, for one day, and offering you an unparalled opportunity to learn new skills, designed to improve your investing and trading profits. he London Investor Show is a one-event and exhibition, drawing together all aspects of the retail investment trading industry, with the one aim of creating an event for private investors and traders that will support, educate and enhance your returns. The success of the London Investor Show lies a great deal in our focus on you, the delegate. With unique access to independent investor training and education - providing you with t;he chance to hear, and learn from, some excellent professional tutors and speakers. Choose from a range of workshops, free seminars, live panel sessions, debates and interviews. The event is clearly designed to help private investors and active traders, like you, learn new skills and strategies that can help boost your profitability. New features have been added to the programme for this year, keeping the London Investor Show as a “must/attend” event for anyone trading or investing. This year, some of the new features include: • A live panel session on ETF’s, chaired by Moira O’Neill, personal finance editor at the Investors Chronicle and using real/life examples of how investors use ETF’s in their portfolios • “Investing in the US” – special seminar from Kully Samra, Charles Schwab • New speakers like Thembi Buthelezi from

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THE EVENT IS CLEARLY DESIGNED TO HELP PRIVATE INVESTORS AND ACTIVE TRADERS, LIKE YOU, LEARN NEW SKILLS AND STRATEGIES THAT CAN HELP BOOST YOUR PROFITABILITY.

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the US who talks about trading strategies, and Phil Oakley from ShareScope who gives a workshop on investor ratios and using both technical and fundamental analysis to select shares • Popular speakers like Rodney Hobson, who discusses how to determine whether you are an income, or a growth investor and how to plan accordingly • The live, Lunchtime Summit, chaired by the BBC’s Adam Shaw who is joined by a panel as they discuss the pensions reforms and the impact on investors and traders. This is your invitation to be part of the London Investor Show – share your views, meet other investors, find out what the industry experts are

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

doing and where they think the smart money will be invested in 2016. Tickets on the door cost £25. Readers of Executive Global can save 50% off the ticket price and pay only £12.50 for your entry ticket to the London Investor Show, which includes VIP access to the exhibition hall, and entry to all free seminars and sessions taking place during the day. For further information, or to register, please visit www.londoninvestorshow.co.uk or call the Delegate Hotline on +44 (0)131 208 0825 and talk to Lisa Campbell.

For further information, please visit: www.londoninvestorshow.co.uk


Attend the event that everyone is talking about

The London Investor Show

YOU CAN SEE THE FOLLOWING SPEAKERS AT THE LONDON INVESTOR SHOW 2015

London Olympia, Friday 23rd October 2015

Justin Urquhart Stewart Seven Investment Management

John Hughman Editor of the Investors Chronicle

Rodney Hobson Private Investor and Financial Author

You are invited join us at London Olympia on Friday 2rd October for the annual London Investor Show, in partnership with the Investors Chronicle. A one-day event and exhibition for private investors and active traders designed to provide education and information through a programme of investment workshops, free seminars, live debates and interviews, plus the chance to meet and speak with industry at the investment exhibition.

Nicola Horlick Bramdean Asset Management

Tickets to the London Investor Show cost £25. Readers of Executive Global can claim two complimentary tickets, by using voucher code “execglobal” when registering online at www.londoninvestorshow.co.uk. Alternatively, please ring the delegate hotline on +44 (0)131 208 0825 where we will pleased to assist.

media partner

Please visit the website for full details and to book:

organised by

Holly Cook Editor of Morningstar.com

supported by

www.londoninvestorshow.co.uk

The London Investor Show is organised by Investor Conferences (UK) Ltd. Registered Office: 3/2 Guardianswood, Ellersly Road, EDINBURGH EH12 6PG. Telephone: 020 7193 4541 Fax: 0700 608 5812.


CEOPROFILE

Julie Meyer

Founder & Chief Executive of Ariadne Capital

We believe that entrepreneurs have a secret – they know something about how the future will unveil itself.

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EXECUTIVE GLOBAL • Productivity, Strategy, Profitability


CEOPROFILE

Julie Meyer

Founder & Chief Executive of Ariadne Capital

BUILDING

GLOBAL GROWTH

In our exclusive interview with JULIE MEYER, founder of EntrepreneurCountryGlobal and CEO of Ariadne Capital, Executive Global explore the numerous advantages venture capital provides to an increasingly innovative and booming technological marketplace. You refer to the notion that capital follows ideas. What fundamental elements do you feel that entrepreneurs should have in order to successfully articulate and translate what may be groundbreaking ideas, into invest-able, practical business propositions? ‘Capital Follows Ideas’ is a key theme and JM belief for us, and a chapter in my book, ‘Welcome to EntrepreneurCountry’. Financiers and investors are looking for the entrepreneurs, the industrialists that have the ideas which are going to shape the age. We believe that entrepreneurs have a secret – they know something about how the future will unveil itself. But they don’t always communicate how they are going to take those insights that they have, and operationalise them. And they don’t always operationalise them effectively. There are some clear stages of development of companies from ideas to products (MVP – minimum viable product) through to understanding their operating model to scaling to achieving a nice safe orbit in a stage market. What we understand quite well is what normal is, how to apply capital to each stage, and how to know when the company is moving to the stage. The most important of all factors is the Go To Market strategy: that is, how will the companies, fast-growing start-ups and enabling tech firms acquire customers. EG

www.executive-global.com

You are incredibly successful and travel all over the world. What global cities do you see driving the next boom in technological innovation within the next 10 years, and why should venture capitalists worldwide pay close attention to these potentially exciting growth markets? I actually don’t think it matters where you live JM – genuinely. If you are determined about it, you can make your presence felt by being online, at the right events, in communication with the right influencers, etc anywhere. But you have to be determined about it. The macro trend is unquestionably that great entrepreneurs can come from anywhere on earth. The challenge for then is that the infrastructure of entrepreneurship is not evenly distributed. EG

How do you think that political leaders could accelerate small business growth and wealth creation to benefit the wider economy, and do you think that technology would play a significant role in this? Can society generally be bettered by a stronger focus on entrepreneurship? I believe in the Laffer Curve, and the greatest JM thing that political leaders could do would be to slash tax and enable people to have a much greater share of their income than they do currently due to tax levies. EG

»

Autumn 2015 • EXECUTIVE GLOBAL

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CEOPROFILE

Julie Meyer

Founder & Chief Executive of Ariadne Capital

Great entrepreneurs in general have a level of drive and persistence which is off the charts. They keep going when most people would simply give up. CVJULIE MEYER BORN Michigan, United States ALMA MATER INSEAD, France EXPERIENCE 1998 Co-founded networking forum First Tuesday. 2000 First Tuesday raised $130 million 2000 Founded Ariadne Capital 2001 Ernst & Young Entrepreneur of the Year 2007 Author of Welcome To Entrepreneur Country 2008 Founded EntrepreneurCounty Global 2009 Featured as a dragon to entrepreneurs on Dragon’s Den.

EXECUTIVE RECOMMENDATIONS

» PRODUCTIVITY

Focus on what you can achieve before 9 am weekdays. By getting on top of my To Do’s before the rest of the world gets going, I manage to be uber-productive and feel superb all day long.

» STRATEGY

Always ask yourself: How should this industry work? Make that your guiding light – your North Star.

» PROFITABILITY

Nice, but free cash flows are where you want to be.

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There has been a lot of talk about robotics and how this sector will revolutionize the global economy. What do you feel that businesses could do to harness the technological output brought fourth by robotics? There are big and small companies in every JM industry. It’s important to understand how they inter-operate. Large (mostly non-technology at their core) traditional businesses whether banks, manufacturing firms, retailers, whatever have customers and offer distribution to smaller, enabling tech, fast-growing firms which have an insight into new consumer behaviour. No venture capitalist is going to give 50 million Euros, Sterling or Dollars to any start-up. The start-ups and fastgrowing enabling tech firms – Ariadne Capital refers to them as ‘Digital Enablers’ – must do a deal with a ‘highway’. We think of start-ups as ‘cars’ who need a highway. So Robotics start-ups and established businesses are no different. The big ones need to meet the up and coming ones. This is one of the many services that EntrepreneurCountry Global provides. EG

You have had the privilege of appearing on Dragon’s Den in 2009. In your expert opinion as a guide to other entrepreneurs who may be attempting to start a new business, what would you say were the most commonly identifiable traits in all of the businesses that succeeded during your time on the show? What characteristics were common among the companies that failed? I was asked to join the original show JM Dragon’s Den in the UK on TV at its debut in 2005, but declined. I was interested only really in innovating around the online, interactive ways that the format could leverage technology, new business models such as crowd-sourcing opinion and building an online portfolio. As it turns out, the Dragons Den Online show was fairly similar to the one which was on TV, but it was fun. However, it would say that the entrepreneurs who pitched really were doing it for visibility as much as capital. The entrepreneurs who we see here at Ariadne Capital are of a whole order different caliber than those who appear on the DD Online show. Great entrepreneurs in general have a level of drive and persistence which is off the charts. They keep going when

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

EG

most people would simply give up. They have something inside of them which makes them believe that they will succeed. It’s not entitlement, but it’s an expectation of success. In what ways do you think that executives in 2015 can harness new technologies to effectively optimize management of people, resources, and time? This is a great question. Work is changing. JM Technology enables us to create jobs, not just get a job. It enables us to work by answering the phone in another country while we’re on holiday. Yes it probably drives to work longer hours if we are ambitious, but also enables us to work shorter hours if we’re lazy, and still make a living wage. In the same way as a long tail has emerged of people who may love flying helicopters or drones globally and for them all to know each other, the employees or entrepreneurs of industries can meet virtually. Fundamentally, technology has shattered the social contract as it was constructed after World War II. A new formal social contract has emerged by digital natives, but the laws of countries have not amended themselves to reflect this yet. EG

If the Ecosystem Economics model were implemented on a wider scale throughout the economy and in business, what trends do you think we would see emerge as a result, and why? As companies become Ecosystem JM Economics companies, they start to achieve market power because they start to organize the economics of their ecosystem rather than accepting the business model of others. They adopt the design of the digital winners, and build new digital revenue becoming platforms with network effects instead of just companies with distribution. Ariadne Capital’s intention is to enable the ROW (Rest of World) – the non-technology traditional businesses who are operating outside of Palo Alto to win. We have some intellectual property which we are sharing with our clients which enables them to deliver a judo move to out do the Facebook, Apple, Amazon and Googles of the world. Net net – if you get to the future faster, you win. EG


CEOPROFILE

Julie Meyer

Founder & Chief Executive of Ariadne Capital

What role do you think that crowdfunding platforms will play in the future of Venture Capital? Every industry is being disrupted, and venture JM capital is no different. Capital can come from anywhere, and the web enables us to pull it from all corners to the most relevant and attractive ideas. EG

After a business in which you have nurtured and invested reaches a stage maturity, what common elements would you typically find present before arriving at the point where you know it is safe to deploy an exit strategy, in preparation for an Initial Public Offering? I’m not sure there’s anything ‘safe’ about JM companies ever. Business is risky; things happen. Markets shift. Black swans occur. Consumer interest changes – particularly among the young. However, fewer companies want to be acquired or go public because the founders and early management teams are able to take cash off the table along the way, diversifying their asset base away from merely being in their private company. Companies are acquired not sold. It’s like love – if you push it, you don’t get it. You have to create the law of attraction, and then do a good deal. EG

Tell us about more about EntrepreneurCountry Global. EntrepreneurCountry Global is a community JM of 250,000 ‘citizens’ who are uber-engaged early adopters. Larger companies can work with these citizens to test drive hypotheses about how their industries should work and to transform themselves digitally. Over the past 5 years, we’ve worked with hundreds of banks, insurance companies, retailers, transportation firms, and media firms to help them build the future of their firms from the future. EG

Photos: Greg Williams

“THE BIGGEST THING THAT INSEAD DID FOR ME WAS TO HELP ME UNDERSTAND MY STRENGTHS.” In 1998, you co-founded the networking forum First Tuesday in London. How important is networking for executives not only in the technology sector, but in business generally? Networking is really just a way to get JM information, to signal to the market and to increase your ability to act in the market. Sometimes you make friends too. I am an INTJ (Myers Briggs), so I find it incredibly tiring, but I can’t really imagine building a successful business without being known and knowing the leaders in your industry. EG

What key factors would you say differentiate Ariadne Capital from other venture capital firms? We are not merely a venture capital JM firm, but we aspire to be an innovative platform, combining the ability to invest in Digital Enablers with the ability to implement their effect in a digital market space, EntrepreneurCountry, whereby Corporates (non-tech firms) can leverage their abilities and algorithms. EG

www.executive-global.com

ACCOMPLISHMENTS

» MBE for Services to Entrepreneurship » INSEAD named top 50 alumni who changed the world

» Warwick University Honorary Doctorate of Laws

» World Economic Forum (Davos) Global Leader for Tomorrow

How do you feel that your MBA from INSEAD may have helped prepare you for your highly successful career in business? The biggest thing that INSEAD did for me JM was to help me understand my strengths. By being in a class of 225, I could clearly see where I was strong compared to my peers. As a result, I started to play to my strengths instead of trying to fix my weaknesses. This changed everything for me, and my career took off. EG

Failure is an essential part of later success and progress in business, but what would you advise entrepreneurs concerning corporate structure and architecture in business? The deal is always done at the beginning. The JM most you can do is to course correct, but you can fundamentally never renegotiate. Make sure you do the deal you want to do. EG EG

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

Autumn 2015 • EXECUTIVE GLOBAL

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FINANCE

Euro Pacific Bank

The punch bowl stays It is well known that I don’t think much of the ability of government officials to correctly forecast much of anything. Alan Greenspan and Ben Bernanke have made famously clueless predictions with respect to stock and housing bubbles, and rank and file Fed economists have consistently overestimated the strength of the economy ever since their forecasts became public in 2008.

Article by

Peter Schiff

FOUNDER AND CHAIRMAN, EURO PACIFIC BANK LTD

ut there is one former Fed and White House economist who has a slightly better track record...which is really not saying much. Over his public and private career, former Fed Governor and Bush-era White House Chief Economist Larry Lindsey actually got a few things right. Back in the late 1990s, Lindsey was one of the few Fed governors to warn about a pending stock bubble, and to suggest that forecasts for future growth in corporate earnings were wildly optimistic. He also famously predicted that the cost of the 2003 Iraq invasion would greatly exceed the $50 billion promised by then Secretary of Defence Donald Rumsfeld, a dissent that ultimately cost him his White House position. (But even Lindsey’s $100-$200 billion forecast proved way too conservative – the final price of the invasion and occupation is expected to exceed $2 trillion). Now Lindsey is speaking out again, and this time he is pointing to what he sees as a painfully obvious problem: That the Fed is creating new bubbles that no one seems willing to confront or even acknowledge. Interviewed by CNBC on June 8th on Squawk Box, Lindsey offered an unusually blunt assessment of the current state of the markets and the economy. To paraphrase:

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“The public and the political class love to have everything going up. We had “Bubble #1” in the 1990s, “Bubble #2” in the 00s, and now we are in “Bubble #3.” It’s a lot of fun while it’s going up, but no one wants to be accused of ending the party early. But it’s the Fed’s job to take away the punch bowl before the party really gets going.” SOWING SEEDS To his credit, however, Lindsey sees how this is sowing the seeds for future pain, saying: “The current Fed Funds rate is clearly too low, the only question is how we move it higher: Do we do it slowly, and start sooner, or do we wait until we are forced to, by the bond market or by events or statistics, in which case we would need to move more quickly. By far the lower risk approach would be to move slowly and gradually.” In other words, he is virtually pleading for his former Fed colleagues to begin raising rates immediately. I would take Lindsey’s assertion one step further; the party really got going years ago and has been raging since September 2011, the last time the Dow corrected more than 10%. (That correction occurred at a time when the Fed had briefly ceased stimulating markets with quantitative easing.) Since then, the Dow has rallied by almost 58% without ever taking a breather. With such confidence, the party has long since passed into the realm of late night delirium. As if to confirm that opinion, on June 8th the Associated Press published an extensive survey of 500 companies (using data supplied by S&P Capital IQ) that showed how corporate earnings

WITH THE FULLY SPIKED PUNCH BOWL STILL ON THE TABLE, AND THE DISCO BEAT THUMPING ON THE SPEAKERS, INVESTORS HAVE CONSISTENTLY LOOKED PAST THE SMOKE AND MIRRORS AND HAVE ACCEPTED ADJUSTED PROFITS AT FACE VALUE.

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EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

have been inflated by gimmicky accounting. Public corporations, upon whose financial performance great sums may be gained or lost, are supposed to report earnings using standard GAAP (Generally Accepted Accounting Principles) methods. But much like government statisticians (see last month’s commentary on the dismissal of bad first quarter performance), corporate accountants may choose to focus instead on alternative versions of profits to make lemonade from lemons. Using creative accounting, bad performance can be explained away, moved forward, depreciated, offset, or otherwise erased. Given the enormity and complexity of corporate accounting, investors have deputized the analyst community to sniff out these shenanigans. Unfortunately, our deputies may have been napping on the job. ILLUSION OF EARNINGS The AP found that 72% of the 500 companies had adjusted profits that were higher than net income in the first quarter of this year, and that the gap between those figures had widened to sixteen percent from nine percent five years ago. They also found that 21% of companies reported adjusted profits that were 50% more than net income, up from just 13% five years ago. But with the fully spiked punch bowl still on the table, and the disco beat thumping on the speakers, investors have consistently looked past the smoke and mirrors and have accepted adjusted profits at face value. In a similar vein, they have looked past the distorting effect made by the huge wave of corporate share buybacks (financed on the back of six years of zero percent interest rates from the Fed). The buybacks have created the illusion of earnings per share growth even while revenues have stalled. So kudos to Lindsey for pointing out the ugly truth. But I do not share his belief that the economy and the stock market can survive the slow, steady rate increases that he advocates. I believe that a very large portion of even our modest current growth is based on the “wealth effect” of rising stock, bond, and real estate prices that have only been made possible by


FINANCE

Photo: Emin Kuliyev / Shutterstock.com

Euro Pacific Bank

zero percent rates in the first place. In my opinion, it is no coincidence that economic growth and stock market performance have stagnated since December 2014 when the Fed’s QE program came to an end (it has very little to do with either bad winter weather or the West Coast port closings). ZERO PERCENT INTEREST Prior to that, the $80+ billion dollars per month that the Fed had been pumping into the economy had helped push up asset prices across the board. With QE gone, the only thing helping to keep them from falling, and the economy from an outright recession (which is technically a possibility for the first half of 2015), is zero percent interest rates. Given this, even modest increases in interest rates could be devastating. Lindsey’s gradual approach may be equally as dangerous as the rapid variety. But the quick hit has the virtue of bringing the inevitable pain forward quickly and dealing with it all at once. Call it the band-aid removal approach; it may seem brutal, but at least it’s direct, decisive and makes us deal with our problems now, rather than pushing them endlessly into the future.

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A DANGEROUS PROSPECT The last attempt made by the Fed to raise rates gradually occurred after 2003-2004 when Alan Greenspan had attempted to withdraw the easy liquidity that he had supplied to the markets in the form of more than one years’ worth of 1% interest rates. But by raising rates in quarter point increments for the succeeding two years, Greenspan was unable to get in front of and contain the growing housing bubble, which burst a few years later and threatened to bring down the entire economy. In retrospect, Greenspan may have done us all a favour if he had moved more decisively. Today, we face a similar but far more dangerous prospect. Whereas Greenspan kept rates at 1% for only a year, Bernanke and Yellen have kept them at zero for almost seven. We have pumped in massively more liquidity this time around, and our economy has become that much more addicted and unbalanced as a result. Arguably, the bubbles we have created (in stocks, bonds, student debt, auto loans, and real estate) in the years since rates were cut to zero in 2008 have been far larger than the stock and housing bubbles of the Greenspan era. When

they pop, look out below. Unfortunately, the gradual approach did not save us last time (worse, it backfired by making the ensuing crisis that much worse), and I believe it won’t work this time. In fact, the current bubbles are so large and fragile that air is already coming out with rates still locked at zero. However, unlike prior bubbles that pricked in response to Fed rate hikes, the current bubble may be the first to burst without a pin. It appears the Fed fears this and will do everything it can to avoid any possible stress. That is why Fed officials will talk about raising rates, but keep coming up with excuses why they can’t. Lindsey will be right that the markets will eventually force the Fed to raise rates even more abruptly if it waits too long to raise them on its own. But he grossly underestimates the magnitude of the rise and the severity of the crisis when that happens. It won’t just be the end of a raging party, but the beginning of the worst economic hangover this nation has yet experienced.

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

Autumn 2015 • EXECUTIVE GLOBAL

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FINANCE

FOSS Family Office

Five pitfalls of multi-family office selection The number of wealthy families around the globe keeps continuously growing. This development is clearly affecting demand for wealth management services as families are increasingly turning to multi-family offices (“MFO”) to manage their wealth.

Article by

Jan van Bueren

FOUNDER, FOSS FAMILY OFFICE SERVICES SWITZERLAND

amilies which consider moving from standard wealth management services to dedicated MFO services mostly overlook the pitfalls coming along with that process. In this article we focus on five pitfalls coming along with selecting the MFO best suited to a family’s wishes.

F

1. FROM WEALTH MANAGEMENT TO FAMILY OFFICE SERVICES What amount is necessary to start using MFO services? Instead of asking themselves this question, a family should discuss why a MFO would really be needed, which goals are pursued, and which type of MFO is in the best position to realise those? Families are looking for a provider without any conflict of interest. However, as a client you need to be well aware that, contrary to SFOs, the majority of MFOs try to make money just like your current wealth manager. 2. THE MFO JURISDICTION A common mistake families make is to choose an MFO located in their home country. This is often not the best choice when examined from a wealth-preservation perspective, as one of the primary roles of an MFO is to safeguard assets. This means that the MFO needs to be able to protect the family’s assets against geographical, political and economic risks, under any circumstance. Therefore the MFO should be located in a secure and stable jurisdiction such as Switzerland. 3. TYPES OF FAMILY OFFICE SERVICES Establishing the actual needs of the family is an essential element in the process of selecting an

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MFO. Starting point is the family background. Based on that, the primary goal of the MFO should be established. Core services can then be selected. It also needs to be checked if the MFO will accept to cooperate with advisors already used, or if it would be better positioned to take over their services? 4. WHICH PROVIDER PROVIDES WHAT? There is no industry standard for what an MFO should offer, and the term “family office” is, in most jurisdictions, neither regulated nor supervised. As a result every MFO has a different service offering, often quite limited in scope. Most only provide a small core of services inhouse, strongly connected to the background of the founder(s). It is therefore essential for the family to understand which services are offered

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

in-house and which are coordinated with external providers. 5. FAMILY OFFICE STAFF There must always be a professional and personal compatibility between the family and the staff of the MFO. This need for a special relationship is one of the main reasons why families should not just follow a recommendation from someone they know: the families in their circle might also be wealthy but they all have different characters and needs. So, selecting an MFO is quite challenging. Families can overcome those challenges without much trouble if they are well advised and take the process seriously.

For further information, please visit: www.switzerland-family-office.com


FAMILY OFFICE & ENDOWMENT INVESTMENT FORUM - WEST A Private Wealth Series Event SEPTEMBER 10-11, 2015 PINNACLE VANCOUVER HARBOURSIDE HOTEL, VANCOUVER, BC

As part of the Private Wealth Series, this family office and endowment investment conference is Opal's premier event for high net worth individuals, family offices, and endowments. The Vancouver program is tailored to Canadian investors who have an interest in new and exciting investment opportunities world wide. Whether you are interested in learning more about real estate, real assets, or how to continue to build on existing wealth, this conference gives delegates the opportunity to learn and mingle with industry experts. Sponsorship and Exhibiting Opportunities are Available If you are interested in attending, sponsoring, speaking or exhibiting at this event, please call 212-532-9898 or email info@opalgroup.net

Register To register, visit us online at www.opalgroup.net or email us at marketing@opalgroup.net ref code: FOCWA1501

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FINANCE

Adrian Day Asset Management

A tireless investment for the contemporary age There are reasons that gold is widely regarded as money. It is not an archaic relic of primitive societies, nor beloved only of survivalists.

Article by

Adrian Day

CHIEF INVESTMENT OFFICER ADRIAN DAY ASSET MANAGEMENT

wo and a half millennia ago, Aristotle outlined the criteria for ideal money. Nothing comes close to meeting these criteria as does gold, not seashells, stones or cattle… not even paper and ink! Gold is money and widely sought after for sound rational reasons. Above all else, it is an asset with value in and of itself, and an asset whose value does not depend on any government or central bank. Indeed, it can be viewed as the antidote to governments and central bank manipulation of paper currencies. It is the only form of money that is not someone else’s liability. So when governments around the world drive interest rates to artificially low levels – negative real rates in over 35 countries today and negative absolute rates in not a few – depriving savers of their hard-earned rewards, gold holds its value. And when governments push down the value of their currencies, increasing the cost of living for citizens, gold holds its own. For U.S. investors, gold has tried patience the last few years as it declined from $1,900 an ounce to the current $1,200. But this was a reflection more of dollar strength than of gold weakness. For most investors around the world, gold has held steady or moved up in terms of their own currencies. Even for U.S. investors, gold has acted as a hedge on the rest of the portfolio, rising at times when stocks corrected. If stocks or bonds suffer a longerterm setback, gold would likely strengthen. Buying now, when the dollar is strong and the dollar-price of gold weak, could prove a perceptive move over the years ahead. Nothing, either in the macroeconomic environment or in the supply-demand fundamentals for gold, suggests lower prices for gold ahead. Although mine production has risen in each of the last three years, those increases have been very minor, and mine production today is lower than it was at the end of the 1990s. Most analysts believe that production will likely rise again this year, but by

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less than 2%, and, more importantly, that this will be the last year of increases before several years of production declines. At the same time, demand for gold, particularly in China and India are strong. Chinese demand continues to increase after a five-fold jump since 2008. Demand in India has recovered from last year’s sharp decline after import restrictions were

BUYING NOW, WHEN THE DOLLAR IS STRONG AND THE DOLLAR-PRICE OF GOLD IS WEAK, COULD PROVE A PERCEPTIVE MOVE OVER THE YEARS AHEAD.

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

introduced, and now exceed prior years. In both countries, but particularly China, a rising middle class is spending money on items that designate status and wealth, such as gold jewellery. For investors willing to take a little more risk and accept more volatility, but seeking leverage to bullion, shares of mining companies are now trading at decade-long lows relative to bullion and on most valuation metrics. Like gold itself, the shares can act as a hedge in a portfolio, increasing nearly half the time that the broad market declines; gold shares have a much higher correlation with gold itself than with the broad market. Mining is a difficult business and not all the companies will show good earnings even in an improved gold market. But buying the best of the shares could see returns that exceed most investors’ expectations.

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


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FINANCE CMRE

Commodities are dead. Long live commodities.

Commodities only make the news when their prices are soaring or plunging. The interest is not maudlin: commodities are the ultimate inputs for all economic activity – changes in their prices affect all investment plans. Article by

Dan Oliver Jr. PRESIDENT, CMRE

f economies grew consistently, then demand for commodities would be steady, and prices would be stable. Yet huge swings in prices are the norm, not the exception. Economic booms reveal scarcity, which draws massive investment to expand supply. The bust seems to arrive consistently right as the new capacity comes online. Oversupply then exacerbates the decline, as is occurring currently in oil. Executives of all industries must navigate

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this commodity cycle, whether their companies produce commodities, consume them, or consume intermediate goods ultimately made from commodities. But most lack any theory to describe the cycle. Keynes blamed “animal spirits” for boom and bust: executives must rely on psychology or lady luck. This is the view promulgated in universities, by the government, and for investors. It justifies government intervention to manage the economy. There is another view that places the blame for boom and bust instead squarely on the central planners themselves. The great Austrian economist Ludwig von Mises, contra Keynes, developed a theoretical framework of the business cycle that is not only obvious but is supported by data.

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

The interest rate in a free market is determined by supply of real savings against demand from businesses that wish to borrow rent that savings. Short of utopia – the full satisfaction of economic wants – demand for capital is infinite, so the interest rate signals the quantity of available savings ready to be deployed into the market. When the Fed lowers interest rates, it sends a signal that more savings exist, ready to be utilized. Businesses race to develop submarginal projects that suddenly seem profitable. And not just any project: discounted cash flow analyses discount distant cash flows the most, so changes in the interest rate mainly affect projects with longterm cash flows such as homes, buildings, ships, airports, etc. Such projects require huge amounts of commodities to build.


FINANCE CMRE

AS THE BOOM DIES, COMMODITY MARKETS ARE OFTEN THE LAST TO TURN. THE SCRAMBLE FOR RESOURCES AT THE END OF THE CYCLE BOOSTS DEMAND EVEN FURTHER. This extra demand for commodities together with lower rates conjoin to make mining investments (which themselves are long-term projects) appear particularly fantastic. There is an investment frenzy, a new economic era. THE SCRAMBLE FOR RESOURCES Banks fund all of these new projects because on paper they look profitable. The problem is the real savings upon which businesses intend to draw do not exist. The lower interest rate is not due to additional accumulation of real savings, but instead is an artifact of bureaucratic meddling in the money market. As businesses try to complete their projects, demand for inputs outstrips supply. Input costs soar ever higher, and there is not enough real capital. The banks become to realize that these loans should never have been made, but they calculate that projects should be completed anyway to salvage some value: a half-built ship is worthless. Bank credit soars even as rates and costs rise, choking the broader economy. As the boom dies, commodity markets are often the last to turn. The scramble for resources at the end of the cycle boosts demand even further. Price increases convince mine operators to push forward with their expansion plans and banks to fund them. For example, troubles in subprime real estate loans hit the news in March 2007, but from then through the summer of 2008 bank credit increased 13%, copper prices increased 42%, and oil prices increased 154%. Financial commentators see rising commodity prices and increasing bank credit, assume it is from general demand, and conclude that the economy is roaring: “This is far and away the strongest global economy I’ve seen in my business lifetime,” exclaimed Treasury Secretary Hank Paulson in July of 2007. In fact, the economy is already collapsing. The free market knows the projects undertaken due to the artificial rates need to be liquidated or abandoned. The resources to complete them do not exist. As the rest of the economy folds, the banks and investors eventually cut off funding to

AFTER EVERY FINANCIAL COLLAPSE, WHEN THE MARKET FINALLY OVERWHELMS THE CENTRAL PLANNERS, THE LANDSCAPE IS LITTERED WITH HALF-BUILT BUILDINGS AND HOUSES AND MINES AND FACTORIES.

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save themselves. The projects fail. After every financial collapse, when the market finally overwhelms the central planners, the landscape is littered with half-built buildings and houses and mines and factories. If the central bank does not intervene, overcapacity would stifle investments for years, but at least costs for the consumer would fall as the economy readjusted. The authorities do intervene. They perceive that lower interest rates cause a boom while higher cause a bust. They redouble their efforts to lower rates, printing money to buy bonds: “To fight a recession, the standard prescription for a central bank is to lower its target short-term interest rate, thereby easing financial conditions and supporting economic growth,” explained Ben Bernanke. Academics applaud: “Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble,” Paul Krugman argued in 2002, adding in 2009: “To be honest, a new bubble now would help us out a lot even if we paid for it later. This is a really good time for a bubble.” The Fed engineers bubbles by printing currency to buy bonds. The currency devalues each time. To continue fooling businessmen that more savings exist than really do requires the illusion to become ever stronger, the interventions ever greater. Eventually, if the authorities print too much money, it loses its function as a store of value. Savers flee to hard assets as the currency system hyperinflates. A new boom for commodities is born, but one driven out of fear instead of greed, from the instinct to hoard rather than produce. RESTORING THE BUSINESS CYCLE The only means to eliminate, or at least smooth, the business cycle is to retire the central bankers and return to a gold standard. But even without a hard money standard, gold provides a guide through the cycle. For example, since Nixon abandoned the gold standard in 1971, oil has increased 30 times in terms of dollars, but is unchanged in terms of gold. The annual standard deviation of oil priced in dollars is 64%, versus only 40% for oil priced in gold. The reason the market has chosen gold as money for thousands of years is its supreme stability. Even if politicians are too obtuse to understand money, and academics too venal, nevertheless, executives who use gold as a unit of account prosper against those that don’t.

For further information, please visit: www.cmre.org

Autumn 2015 • EXECUTIVE GLOBAL

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FINANCE

Christopher Monckton of Brenchley

Time for central bankers to relearn some history The first object of a central bank, as the repository for the national debt, is to manage that debt. A prudent governor will exercise such influence as he can on ministers to keep the debt within bounds. Few today have succeeded.

European Central Bank

Article by

Christopher Monckton

THIRD VISCOUNT MONCKTON OF BRENCHLEY

any Western nations will never pay back what they owe. Take Britain. A decade ago the Bank of England was given “independence”. Record deficits followed. Even the present administration, after five years of alleged “austerity”, continues to borrow as much every year as the 200-year accumulated total national debt that preceded Margaret Thatcher’s premiership. The U.S. and British Governments have both doubled their national debt in one administration. When what was the national debt becomes the annual deficit, recovery without revolution is impossible. No nation so heavily indebted has ever before emerged unscathed. Central bankers should remember that, and get tough with the politicians. Enter Greece. For years, at 10 Downing Street, we toiled to ensure that the European Treaties should contain eight economic convergence criteria – annual deficit not to exceed 3% of GDP; national debt not to exceed 60% of GDP; etc. No compliance, no euro. Yet when the Kommissars of Brussels discovered 1996 that the only nation which then complied with all eight criteria was Luxembourg, in open but unpunishable defiance of Treaty law they simply abandoned all the criteria and admitted every nation that wanted to join. I say “unpunishable” because the European Union is an artfully-disguised but ruthless tyranny with all the trappings of democracy except democracy. Greece should never have been permitted to accede to the euro. She should now offer her citizens a fully-funded currency like the successful Mark banco, Hamburg’s silver-based instrument, which never inflated and became the default unit of account throughout Europe from northern Germany to Venice for 250 years. The hard drachma could operate in parallel with the euro. It

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Photo: Oscity / Shutterstock.com

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WHEN WHAT WAS THE NATIONAL DEBT BECOMES THE ANNUAL DEFICIT, RECOVERY WITHOUT REVOLUTION IS IMPOSSIBLE. would reverse Gresham’s law: fully-funded money is the one type of good money that drives out bad. The currency-fund managers, independent of government, would run the asset portfolio like a prudentially-managed but fungible pension fund, with assets broadly diversified sectorally and geographically. The hard drachma would fund itself: bring me an inflating, fiat euro and I’ll give you a drachma, but I’ll spend your euro that day on a sound

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

investment lodged in the sovereign wealth fund behind the drachma. Greece should also leave the EU, freeing herself of the pointless regulation that has cost her so dear. And she should repudiate her debt. She is not to blame for her present predicament. The fault lies with the Kommissars and their allies in the European Central “Bank”, whose arrogant lawbreaking bankrupted Greece and will bankrupt many others. With a new currency and a new freedom both from regulation and from debt, Greece could be the economic power-house of Europe within a generation. And the example of her success, which other nations would enviously copy, would spread her prosperity to them too, repaying them handsomely for any debt she once owed. Central bankers, take note.

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


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TECHNOLOGY Veritaseum

The Nordic states’ Central Bank QE program slides backwards Earlier this year I expounded upon the absurdity of the massive NIRP campaign embarked upon by the ECB and the Nordic central banks.

Article by

Reggie Middleton FINANCIAL ANALYST AND CEO, VERITASEUM

ow back to this discussion of currency wars, something’s got to give. Countries cannot (or at least, have never) successfully pursued all three methods of currency manipulation without failing. According to Wikipedia: The Impossible trinity (also known as the Trilemma) is a trilemma in international economics which states that it is impossible to have all three of the following at the same time: 1) A fixed exchange rate 2) Free capital movement (absence of capital controls) 3) An independent monetary policy It is both a hypothesis based on the uncovered interest rate parity condition, and a finding from empirical studies where governments that have tried to simultaneously pursue all three goals have failed. The Impossible Trinity or “The Trilemma”, in which three policy positions are possible. If a nation were to adopt position a, for example, then it would maintain a fixed exchange rate and allow free capital flows, the consequence of which would be loss of monetary sovereignty.

N

FREE CAPITAL FLOW

A

B IMPOSSIBLE TRINITY

FIXED EXCHANGE RATE

C

SOVEREIGN MONETARY POLICY

So, either balance sheets get burned trying to buy and sell currencies, capital controls are implemented, or QE (sovereign monetary policy) fails. All three are likely not going to succeed. It’s probably not what the Riksbank expected.

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THIS IS SIMPLY MORE PROOF THAT THOSE WHO ARE RUNNING THE CENTRAL BANKING SYSTEM OF THESE COUNTRIES TRULY HAVE ABSOLUTELY NO IDEA WHAT THEY ARE DOING. Quantitative easing is supposed to drive down longer-dated yields. But as investors obsess over market depth, the Riksbank’s bond purchases are undermining liquidity and driving Swedish yields higher. Sweden’s 10-year government-bond yield, which traded as low as 0.2 percent in April, was at 1.1 percent on Tuesday. Its five-year yield was 0.4 percent, after trading below zero just two months ago. And though Swedish yield spreads have narrowed relative to German bonds, investors can still earn about 15 basis points more by holding AAA-rated 10-year notes issued by Sweden than they can holding similar notes from Germany.

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

KRONA’S ALLURE Meanwhile, the extra yield is adding to the appeal of the krona. Since the Riksbank started its bondpurchase program in mid-February, Sweden’s currency has appreciated more than 4 percent against the euro. It’s up 5 percent against Norway’s krone and is 3 percent higher versus the dollar. Nordea Bank AB estimates the krona is trading about 3 percent above the Riksbank’s forecast, based on the trade-weighted exchange rate. That will make it harder for the bank to prevent disinflation as import prices decline. The Riksbank targets about $10 billion in government bond purchases as it tries to revive consumer-price growth after months of deflation. That’s about 14 percent of the market or 3 percent of Sweden’s gross domestic product. Any efforts to expand asset purchases would deplete Sweden’s already limited sovereign debt supply, SEB AB and Danske Bank have said. And there you have it. This is simply more proof that those who are running the central banking system of these countries truly have absolutely no idea what they are doing. An “I told you so” just wouldn’t be appropriate here, would it? EG

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


FAMILY OFFICE & PRIVATE WEALTH MANAGEMENT FORUM - WEST “HARVESTING THE RETURNS” A PRIVATE WEALTH SERIES EVENT OCTOBER 28-30, 2015 NAPA VALLEY MARRIOTT, NAPA, CA

Come and enjoy a bottle of Napa Valley’s finest Chardonnay at Opal Group’s Annual Family Office & Private Wealth Management Forum - West. Known for the fastest growing population of newly structured family offices, Northern California's wine country provides a beautiful landscape for this three day event. Largely dominated by first and second generation families from the Silicon Valley, investment strategies such as Private Equity, Venture Capital, and Technology will be familiar themes throughout the conference. Investment managers and families will come together to discuss the foundations in which they built their wealth, and uncork the various investment strategies in which to keep their portfolios growing and plentiful. Additional hot topics such as impact investing, alternatives, and the trustee beneficiary relationship, will allow for delegates to sample a diverse blend of palatable subjects while networking amongst the grape vines. To cap off the event, attendees will wine and dine in one of Napa's luxurious wineries, creating an experience that they will never forget. Sponsorship and Exhibiting Opportunities are Available If you are interested in attending, sponsoring, speaking or exhibiting at this event, please call 212-532-9898 x 222 or email awellington@opalgroup.net

Register To register, visit us online at www.opalgroup.net or email us at marketing@opalgroup.net ref code: FOPWWA1504

Opal Financial Group Your Link to Investment Education


FDI & INWARD INVESTMENT Missouri Partnership

Wouldn’t it be nice in Missouri? Why the ‘show me’ state is right for international investment

Let’s talk about the United States for just a minute. What comes to mind when you think of outdoor adventure and hiking? Okay, how about the place where cars are built? What state would you guess is home to Hollywood actors, award-winning wineries and 2,000 miles of shoreline?

Article by

Marion During

COMMUNICATIONS MANAGER, MISSOURI PARTNERSHIP

f you find yourself thinking of the Rockies or Detroit or California when asked these questions, you know your 20th century American history pretty well. If, instead, you find yourself thinking about Missouri…it’s more likely you’re looking ahead. The fact of the matter is our impressions of places are often based on information that is as old as the mountains, information that in many cases is not as accurate now as it once was. Before embarking on a quest to relocate, companies need to look beyond a state’s label to find locations that can sustain business growth over an extended period of time. It is a hallmark of successful companies to blaze trails rather than follow them, to move out of well-worn ruts and to consider new ways of doing business. And yet, when it comes to looking at new places for business, the pairings roll off the tongue a little too easily: IT belongs in a certain west coast market. Cars are built in a place nicknamed for them: Motown.

I

PRO BUSINESS STATE These places – and others like them – have become icons for particular industries and remain strong contenders for relocation projects. But, in order to get the best return on investment, it is wise for companies considering relocation or expansion to look beyond the obvious. Business locations change like everything else does. Business costs rise with reputation. And reputations change over time. In 2008, the Missouri Partnership did a baseline survey of 3,000 executives to gauge their impressions of the state of Missouri as a potential

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new business location. The results showed only 18% of respondents giving Missouri favourable or highly favourable marks. Just three years later, in a follow-up study, the state’s favorability had more than doubled. And in the years since, several major projects have announced in Missouri. Missouri has seen upticks in the rankings as well, particularly in the areas of low taxes, transportation/ logistics, and pro-business environment. Even among its eight midwestern neighbours, Missouri is a standout in these areas. Unfortunately, companies that are still listening to old tapes may regard the Midwest as “flyover country,” when in fact America’s midsection tends to be more business-friendly than either coast. Missouri has consistently been named a Top 10 Pro Business state for five years in a row by Pollina Corporate Real Estate, sharing that small stage with three or more midwestern states every year. Missouri is extremely competitive even among these low-cost states, consistently earning a top 10 ranking for its low corporate income tax index, a rarity for a state in the middle of the country. It has also maintained its AAA bond rating for 50 years, a distinction held by just three other states. For companies looking to make that once-in-a-lifetime move, this kind of stability is tremendously reassuring. Also reassuring is Missouri’s resiliency during shifts in the marketplace, attributable in large part to its economic diversity. Missouri has the 4th most diverse economy in the U.S. with a GDP of more than $275 billion (Bureau of Economic Analysis, 2013) and exports totalling more than $12.9 billion (International Trade Administration, 2013). Sector strengths in advanced manufacturing, energy, IT, transportation/logistics, bio, and health and financial services contribute to Missouri’s hardy and stable economy and strongly influence the quality of life for its citizens.

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

And does Missouri ever have citizens, with over six million people and a workforce that’s larger than the entire populations of 20 other U.S. states. But what’s really significant is the quality of the state’s workforce. Missouri graduates a higher percentage of its high school seniors than the U.S. average, delivering a ready-to-go workforce for high-end, scalable companies. SOUND ECONOMIC PRINCIPLES Given these statistics, it’s all the more surprising that Missouri’s labour costs are eight percent below the national average. But the state’s cost of living is also below average, giving Missourians the opportunity to afford comfortable lifestyles. Missouri is a square deal, no doubt about it, run on sound economic principles. The state’s a bit square in other ways, too, but that’s less of a problem than it might seem. Business – not bling – is a priority for the state. Missouri isn’t trying to be something it’s not. That having been said, Missourians would argue that this is not flyover country at all, but a place rich with cultural and recreational offerings that are every bit as diverse as its industries. Missouri’s two major metros offer distinctively different experiences. St. Louis

MISSOURIANS WOULD ARGUE THAT THIS IS NOT FLYOVER COUNTRY AT ALL, BUT A PLACE RICH WITH CULTURAL AND RECREATIONAL OFFERINGS THAT ARE EVERY BIT AS DIVERSE AS ITS INDUSTRIES.


FDI & INWARD INVESTMENT Missouri Partnership

MISSOURI IS EXTREMELY COMPETITIVE...CONSISTENTLY EARNING A TOP 10 RANKING FOR ITS LOW CORPORATE INCOME TAX INDEX, A RARITY FOR A STATE IN THE MIDDLE OF THE COUNTRY.

– often referred to as America’s western-most eastern city – has that old city feel, with original brick townhomes, sophisticated gardens and museums and a world-class symphony orchestra. Kansas City – America’s eastern-most western city – prides itself on its 210 fountains, walkable business districts and revitalized downtown and midtown areas. Together the two cities boast five major league sports teams some of the largest and most beautiful parks in the country. And because they are located on Missouri’s east and west borders, St. Louis and Kansas City complement the labour pool for points in between, creating a nearly seamless band of talent across the state. Missouri has nearly 140 colleges and universities, which draw over 400,000 students each year from the U.S. and abroad, including such notable schools as Washington University in St. Louis, Rockhurst University in Kansas City, and the four campuses of the

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University of Missouri. The state’s hospital system includes several nationally ranked institutions. While schools and hospitals greatly affect the lives of all Missourians, it is the state’s cultural and recreational amenities that draw the most attention. Missouri is home to several sparkling lakes, attracting millions of tourists to the state each year. Lake of the Ozarks and Table Rock Lake measure more than 40,000 acres apiece and account for a significant portion of Missouri’s 2,000 miles of shoreline. In 2013, the state received the Best Trails State Award from American Trails. Missouri was selected above those “rockier” states to the west for its 1,000 miles of managed trails, including a complex hiking system through the Mark Twain National Forest and the 240-mile Katy Trail, the nation’s first – and longest – rails-to-trails bike path. In celebration of the recognition, Missouri Governor Jay Nixon launched the “100 Missouri

Miles” challenge for all Missourians to run, walk or cycle a centennial course in the remaining months of the year. The number of people that signed up for the Governor’s challenge numbered in the thousands in the first few weeks. So, yes, Missouri does get attention for its trails, and for its actors – Jon Hamm and Brad Pitt, to name a few – and for its 120 wineries. But more importantly, Missouri “gets” business in a way that may actually help shape the future of industries around the globe. So next time you find yourself wondering about the fastest growing markets for IT or next time you’re searching for a healthy automotive supply chain, remember to look beyond the obvious and think: “wouldn’t it be nice in Missouri.”

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

Autumn 2015 • EXECUTIVE GLOBAL

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FDI & INWARD INVESTMENT Active Relocation

Lump sum taxation in Switzerland Switzerland as a tax haven has been much in the news recently but few really know the details about this flat-rate system. Who can benefit and how?

Article by

Sabine Baerlocher CEO, ACTIVE RELOCATION

ertain regions of Switzerland remain an attractive tax deal for rich expatriates taking up residence here thanks to a vote late last year to keep a 152-year-old tax break known as Lump Sum. Originally intended to get wealthy foreigners retiring to the region to pay for local services, this wasn’t seen as a privilege at all. Today though, this flat tax regime has helped make our region a popular home for the super rich. This measure, charging wealthy foreign residents with no gainful activity in the country a lump sum based on their living expenses instead of taxing assets or income, is helpful to the country’s economy and critical to Switzerland’s appeal as a business location, say proponents. Its critics argue that foreigners living in Switzerland should be taxed on the basis of their income and assets, like other taxpayers. While some cantons have abolished this system, Geneva, Vaud as well as several other cantons, continue to attract lump sum tax beneficiaries. In fact, the Lake Geneva Region is home to the largest concentration of Switzerland’s Lump Sum beneficiaries. Throughout Switzerland, less than 0.1% of taxpayers are taxed under the lump-sum regime. To qualify for this expenditure-based tax regime, the foreigner must be: • taking up permanent residence in Switzerland for the first time or following a minimum 10 year absence • without gainful activities in Switzerland • earning significant money (amount depending on location) • fulfilling a minimum requirement for age in most cantons. Since assessing the actual foreign income of taxpayers is extremely difficult, the tax authorities came up with a simplified calculation method based on expenditure for housing.

C

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EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

Lake Geneva

CERTAIN REGIONS OF SWITZERLAND REMAIN AN ATTRACTIVE TAX DEAL FOR RICH EXPATRIATES TAKING UP RESIDENCE HERE THANKS TO A VOTE LATE LAST YEAR. A multiplication factor is applied to the annual rent or costs for housing and this amount increased by a specific percentage will serve as basis for the taxation. Under the current law, tax authorities in the lake Geneva Region generally apply a multiplication factor of five to six. This means that someone renting a house

for CHF 10,000 a month, will be taxed as if he was having a total yearly income between CHF 600,000 and CHF 720,000 plus X percent. A new federal law, to be effective as of January 1st 2016, will raise the minimum requirement to seven times the yearly rent paid for a main residence in Switzerland. Tax specialists will be keeping busy with this change as well as new treaties. Several countries have already signed double tax agreements with Switzerland influencing the calculation of the lump sum. In addition to this expenditure based tax, wealthy foreigners are also subject to pay a wealth tax if their personal assets exceed a certain threshold, which also differs depending on the place of residence within Switzerland.

For further information, please visit: www.active-relocation.com


And wouldn’t it be nice if your dollar went further there so you could capitalize on industry growth?

Wouldn’t it be nice to work in a place that had real depth in the fastest growing business sectors?

And wouldn’t it be nice if the workforce you needed to sustain that growth was already in place?

www.ad.missouripartnership.com


FDI & INWARD INVESTMENT Talencium LLC

Key advantages of operating a company in Switzerland

What are some of the key factors company CEOs, CFOs, and entrepreneurs assess when considering doing business in Switzerland?

Article by

Michael Shrum MANAGING DIRECTOR, TALENCIUM LLC

s there is no “one-size fits all” solution, to get a glimpse into some of the critical factors that are increasingly being considered, one has to peer over the shoulders of some multinational companies, which have successfully established a company in Switzerland, as part of their international expansion strategies. Below we explore some of the conditions that contribute to Switzerland’s appeal for international firms.

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STABILITY This factors high in guarding against the volatility that is so prominent on the financial and economic front, especially in today’s climate. Therefore management seeks stable political, economic, and legal surroundings from which to conduct business operations. The challenges of market dynamics already keep business in a competitive

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mode, without added location uncertainties. The stability afforded through establishing a business in Switzerland is of the highest order. SECURITY Another high priority concerns the security of conducting operations, and, especially, existing government controls and regulations. Foreign exchange controls in particular continue to provide companies with formidable challenges. Successful management requires planning visibility. EXPERTISE Access to well-trained, local personnel also plays an important role in location analysis. Even when bringing in your own staff, it might be necessary to cover positions in Switzerland with local contracts. This is especially important when industry-specific knowledge is required for staff training throughout the company’s expansion and relocation. FISCAL POLICY Companies and entrepreneurs will take a hard look at the prevailing fiscal environment, to thoroughly assess the medium and long-term prospect of finding an optimal balance between the cost of doing

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

business and fiscal advantages. The Swiss corporate and individual tax structures remain very attractive in comparison to the EU and other industrialized countries, and offer appealing considerations for establishing a business in Switzerland. INFRASTRUCTURE Access to state-of-the-art business requirements, transportation and web-based information technology cannot be underestimated. Maintaining high productivity levels is dependent on integrated IT technology and rapid internet connectivity. Switzerland has this in abundance. Proximity to

THE SWISS FRANC HAS LONG BEEN A SAFE-HAVEN CURRENCY, REPEATEDLY DEMONSTRATING ITS APPEAL AS A CURRENCY OF CHOICE DURING PERIODS OF HEIGHTENED VOLATILITY.


FDI & INWARD INVESTMENT Talencium LLC

there the several important advantages which stand out in the canton’s favour: ZUG INCORPORATION PROCESS Setting up business in Zug is a well-defined and clear process, requiring the proper documentary representation to the local trade registrar and chosen banking channel. A Zug incorporation can be completed in a short period of time once documentation, lawyer documentation, and bank accounts have been properly established. Working permits and resident requirements are professionally managed through the respective cantonal departments. MODERN INFRASTRUCTURE Zug is investing in its future through the ongoing development of both commercial and private property expansion. New office complexes have been built, and there are new ones under construction, offering high quality office space to larger companies and small business operators alike. The growth in business service centres caters to an increasing demand for flexible and cost-efficient office utility services, especially for smaller companies. INTERNATIONAL Although a relatively small town in comparison to Zürich or Geneva, Zug is highly cosmopolitan and provides numerous services for the international community, especially for families with children. There are several English language schools available in the region, as well as, numerous social opportunities. The proximity to Zürich International Airport assures swift business and private travel access.

international air-travel is provided through the Geneva and Zürich international airports, coupled with an excellent, country-wide rail infrastructure. BUSINESS CLIMATE The competitive business climate exists in Switzerland thanks to an inherently strong export and service orientation. Incorporating a company in Switzerland is a straightforward process and is supported by the local trade authorities and municipalities. Doing business in Switzerland is further enhanced through a multi-lingual workforce with a high prevalence of English. SAFE-HAVEN CURRENCY The Swiss franc has long been a safe-haven currency, repeatedly demonstrating its appeal as a currency of choice during periods of heightened volatility. Even with recent appreciation challenges, the long-term currency stability and low risk of value depreciation outweighs these shorter-term, market aberrations. CANTON OF ZUG REMAINS TOP For several years in a row, the canton of Zug has achieved the top spot in the annual Credit Suisse Location Quality Index (LQI) survey. The index

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has been calculated by Credit Suisse economists since 2004, on the basis of data relating to Switzerland’s 2,700 (approximate) municipalities. This is a quantitatively measured process, taking into consideration five key factors which are measured amongst the various Swiss cantons: The fiscal tax rates levied on individuals and companies alike; the general educational level of the inhabitants; the availability of locally qualified specialist staff; and proximity to flexible and efficient transportation options. The canton of Zug is already a base to numerous international companies, including several centralised operational structures, grouping company-wide sourcing, purchasing, treasury, and other activities under one location. International Zug companies represent a diverse area of industry focus and specialisation, including: • Swiss & International Commercial Activity • Biotech Research & Development • International Patents & Licensing • Commodity Trading • Financial Services • Asset Management When looking more closely at the drivers for a Swiss company incorporation in the canton of Zug,

FISCAL ADVANTAGES Canton Zug offers some of the lowest business and private tax rates in Switzerland, allowing both companies and inhabitants to benefit from the fiscal environment. To conclude, there is a strong case for a Swiss company formation strategy for a new, international operational structure. If you are looking for an ideal international company location, especially for EU/EMEA expansion, the Zug canton is highly recommended for your short-list of Swiss options. As the amount of international companies already present will testify, Zug has a special appeal, and offers fabulous opportunities and benefits for those ready to launch. TALENCIUM LLC – SWISS COMPANY INCORPORATION SERVICES Talencium provides full-service formation support to international companies and entrepreneurs in setting up new company operations in Zug, enabling the swift incorporation of a Swiss company legal entity, as well as, continuous company management support.

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

Autumn 2015 • EXECUTIVE GLOBAL

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FDI & INWARD INVESTMENT Relocate Consulting 2000

Talent mobility – why move to Spain? The relocation industry handles the very personal issues of a move: the search of a home and finding the right school for the children are the two most sensitive points a relocation company has to help and advise the family with.

Article by

Connie Ronn

MANAGING DIRECTOR, RELOCATE CONSULTING 2000

ince ‘relocation’ in its pure sense means ‘move from one place to another’, globalizing the physical move of furniture, house hold, cars and others is a good idea, but the service of the personal needs of a family or an individual must be dealt with extreme sensibility as well as professionalism in order for the relocation to be a success. And this can only be done with local knowledge. Spain has a lot of attractive aspects and some special differences, like the work hours – for example: the shops normally open from 10am to 2pm and from 4pm to 8pm, closing at lunchtime. That surprises the foreigners who are used to do their shopping during lunch time. As for the attractive aspects, Spain and especially Barcelona and Madrid, have a lot to offer to a transferee: the good weather, the healthy food , the colorful traditions and cultural proposals as well as safety are only the first 5 top reasons that attract foreigners to our country. The relocation of personnel as a capital investment has been proven to bring outstanding results to multinationals and the Talent Mobility is a

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THE HAPPINESS AND CONFIDENCE WITH WHICH ‘OUR EXPATRIATES’ EXPERIENCE THEIR MOVE TO SPAIN MAKES THEIR TRANSITION SEAMLESS AND OUR JOB VERY GRATIFYING.

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growing concept that has had an enormous positive impact in all companies that have adapted this culture. But costs need to be taken into account as well and the three most relevant are: administrative (taxes, benefits and compensation, etc.); the moving company and the relocation company. The costs of moving furniture and personal belongings can be very expensive. By comparison, a relocation agency can save the company significant amounts of time and money. A local relocation company with experience on ground, such as RELOCATE CONSULTING 2000, will handle a wide range of services - from searching for a home or school to finding a nanny or sports club near the office – taking care of details that only can be handled with local expertise. At RELOCATE CONSULTING 2000 we

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

study the individual needs of the expatriates and act accordingly – the transferees are the sole focus of our attention and their needs come first. Our organization has a structure to help many expatriates simultaneously in any city of Spain, while providing each one with the high standards of dedication they deserve. And it shows! The happiness and confidence with which ‘our expatriates’ experience their move to Spain makes their transition seamless and our job very gratifying. From our experience, the transferees who have lived here are happy when they come and sad when they leave, but all of them glad for having had the experience of living in Spain!

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


AVIATION

Charlie Bravo Aviation

Five things to consider before buying an aircraft Private aviation gives leaders unprecedented access to the world – on both a local and global level. This way to travel helps business people and thought leaders reach out-of-the-way places, move easily between continents, and make the most of their time while traveling. In short, private aviation expands influence exponentially. And, let’s face it, the thought of buying a private jet is a really fun one.

Article by

René Banglesdorf FOUNDER & CEO, CHARLIE BRAVO AVIATION

he selection of the wrong aircraft can become a safety and financial nightmare. It is important for buyers to obtain sound counsel about the type of aircraft they purchase, the conditions under which it is bought and how much it is truly worth – in today’s market and when they’re ready to resell. Obtaining this kind of counsel before purchasing an aircraft helps eliminate costly mistakes and keeps the market from becoming inflated with a plethora of brokers vying for the same buyer’s business. Aviation consultants and aircraft brokers are not required to have any formal training or licensing and are not held to any code of ethics. A reputable broker or consultant will provide references and be well-respected among his or her competitors. Once you have professional representation, consider the mission that the aircraft will perform a majority of the time.

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How far do you fly 80 percent of the time? If most of your flights are in the same region, but you leave the continent once or twice a year, you may not need a transcontinental-type aircraft. A shorter-range, lower-cost plane can be supplemented with charter for those atypical situations. How many people will usually be in the aircraft? Different size aircraft can be configured to accommodate more passengers or those with special needs.

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Where do you typically land and take off ? Some aircraft are more suited to high altitudes, extreme weather conditions and shorter runways. This is a very important consideration that many people overlook.

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How much do you – or will you – use the aircraft? As a general rule, if an entity flies less than 50 hours per year, aircraft charter may be the best use of funds. For use between 50 and 150 hours per year, partnership or fractional ownership is appropriate. More than 150 hours of usage in an average year signals a need for a dedicated aircraft. How important is security? If it is necessary to store the aircraft in a controlled environment when it is not in use, have a consistent crew or land in a restricted area, aircraft ownership may be the answer no matter the usage amounts. Once a buyer has determined the appropriate mission profile, he or she should consider the budget. There are a number of factors that

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

AS A GENERAL RULE, IF AN ENTITY FLIES LESS THAN 50 HOURS PER YEAR, AIRCRAFT CHARTER MAY BE THE BEST USE OF FUNDS. can greatly impact what an aircraft costs. To read more about budgetary considerations on an aircraft purchase, please visit my blog entry on the subject.

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


www.aviatrax.com

LUXEMBOURG

MONACO

MALTA

DOMINICA

ISLE OF MAN

UNITED KINGDOM

 Corporate Jet Sales and Acquisition  Corporate Aircraft Management  Airworthiness Management  Aircraft Registration  Aviation Consulting  Crew Leasing Programme  Aircraft Finance

Contact: Customer Support Email: support@aviatrax.com Tel.: +352 26302707

AVIATRAX S.A. 17 Boulevard Royal L-2449 Luxembourg Grand Duchy of Luxembourg


EXECUTIVE EDUCATION

Melbourne Business School

Increasing global performance through leadership development Nestlé has a long and established presence in Malaysia where they are significant contributors to the Nestlé global talent pool. As a world leading nutritional, health and wellness company, Nestlé is in a very competitive environment and is cognisant of the need to retain market leadership. Melbourne

Article by

Guy Saunders

ASSOCIATE DEAN, MELBOURNE BUSINESS SCHOOL

t the heart of Nestlé Malaysia’s HR Strategy sits people leadership. Uzma Qaiser Butt, Human Resources Director at Nestlé Malaysia and Singapore firmly believes people leadership is really going to make the difference. In December 2013, Nestlé Malaysia/Singapore went through a competitive tender process to engage a leadership development partner to realise this aspect of their HR Strategy. Melbourne Business School were the successful providers, charged with designing and delivering a leadership program for the top 300 managers across the company in Malaysia and Singapore. MBS sees its partnership with Nestlé Malaysia/ Singapore as a collaborative relationship with a clear and shared sense of purpose involving key stakeholders focused on an agreed outcome. MBS and Nestlé Malaysia/Singapore have built a partnership based on mutual trust and respect through engaging key stakeholders to deliver successful outcomes. As such, we believe together we will achieve real organisational impact that extends beyond what each organisation could achieve in isolation. Through in-depth consultation we designed a modular program extending across 5 months customised to the needs of Nestlé Malaysia/ Singapore. The program’s purpose is to develop leadership, communication, relational and innovation skills with learning objectives directly linked to key organisational metrics related to employee engagement, improved relationships and overall profit growth. Program Director Michael Curtin said, in 2014 the program touched 150 participants and their engagement has been incredibly high. ‘Nestlé Malaysia/Singapore is a widely diverse organisation with at least 12 different nationalities involved in the program so far. This has emphasised the need to build capability and capacity in an intercultural

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EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

INCREASED COMPETITION, A CHANGING MARKET AND NEW ENTRANTS IN THE MARKET HAS DRIVEN THE NEED FOR NESTLE TO BE MORE AGILE, INNOVATIVE AND RESPONSIVE.

in the market have driven the need for Nestlé to be more agile, innovative and responsive. Working with MBS to develop their leadership capability has allowed participants to explore these critical market changes and to respond effectively. A video featuring participants was initially developed as an internal global marketing tool and this has become a key input to program impact – participants telling their own story about their learning journey and how this has been applied in the workplace – it’s all about people leadership. MBS is a global business school offering a suite of MBA and Executive Education programs. ‘We deliver world class programs that are rigorous in their content, deliberate in their design and delivery, and most importantly, have a measurable impact from the learning back in organisations adding long term value.’ Guy Saunders, Associate Dean Melbourne Business School. EG

sense which reflects the bigger picture of a multinational company like Nestlé.’ Nestlé Malaysia/Singapore senior management have reported seeing a change across the organisation and have seen “significant increases in collaboration and leadership behaviour “ which will translate into better business results. Increased For further information, please visit: competition, a changing market and new entrants www.mbs.edu/programs


EXECUTIVE EDUCATION

IAE-AMGSM

From a problem-focused to a solution-focused mindset

Leadership training at IAE Aix-Marseille Graduate School of Management (France)

Leadership involves developing a specific mindset that connects business and people. Teaching and learning leadership skills is therefore a challenge: how can we change people’s mindsets in order to increase their leadership potential?

Article by

Carolina Serrano ASSOCIATE PROFESSOR, IAE-AMGSM

ne way that we have identified is to coach the MBA participants to become selfaware. To discover themselves (their assumptions, their values, their drivers, their behaviours and their impact on others) sufficiently to constantly evaluate the level of responsibility and accountability of any relational situation they face, and to learn and grow from it. And yet, opening ourselves to self-awareness is a challenge. There are many socially-embedded reasons why many MBA participants struggle to sincerely and accurately, enter into self-awareness. • The first one is ego. Our societies have become very individualistic, and individuals need to feel that they exist and play a significant role. The result of this is a deep belief of a one’s value that often translates itself into arrogant or manipulative behaviours. • The second is the need to control. Our corporate cultures are based on control: controlling time, controlling budgets, controlling others, controlling nature. And MBA participants tend to adopt a controlling mode to decisionmaking, relationships, and opinions. These two factors tend to generate defensive attitudes. When facing a problem, like a conflictual situation, people will protect themselves by finding an instigator to the conflict and thus denying their own responsibility in it. This belief is very restrictive, because it pushes people to remain focused on the problem and prevents them from finding constructive and positive solutions. Leadership requires a totally different way of looking at things. Leadership is about acknowledging a problem and immediately exploring the opportunity that lays behind it. It believes every problem hides a solution that opens up to new options. This is what we call a solution-focused mindset. Every conflict encapsulates a potential learning about ourselves and about the situation that needs to be seen. And it cannot be seen if people do

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LEADERSHIP IS ABOUT ACKNOWLEDGING A PROBLEM AND IMMEDIATELY EXPLORING THE OPPORTUNITY THAT LAYS BEHIND IT.

• Leave our ego and connect to our essence, our authenticity. MBAs adopt a more an constructive way of interacting with others, with less judgment and with a higher level of goodwill and acceptance to themselves and to others, • Let go. Letting go is acknowledging the flow, focusing on what is (as opposed to what should be), and playing with it to build something greater and innovative. Effective MBA teaching focuses on developing this leadership behaviour in future executives so that they can drive innovation and lead their teams by translating the growing business complexity into opportunities for all. EG

not acknowledge their part of responsibility to the problem. The path to developing a solution-focused mindset begins with self-awareness. Self-awareness, a connection to our inner potential, taps into the many senses that nature provides to human beings to explore the “signals” sent by any problem, and sense an opportunity beyond the problem itself. Self- For further information, please visit: awareness invites us to: www.iae-aix.com


10 [VERY GOOD] REASONS TO JOIN THE EXECUTIVE MBA AT IAE AIX-MARSEILLE GRADUATE SCHOOL OF MANAGEMENT An international, accredited and renowned program, 100% in English An Executive MBA with 2 modalities: Part-time (2 years) or Fast-track (1 year) Aix-Marseille Université, the largest French University

Leading Business, People & Innovation

Small but strong : proximity and authenticity within a strong partnership network Up-to-date knowledge and on-field experience out-of Critical analysis and out-ofthe-box thinking The South of France, a French cluster of innovation

Register with Marion Moreau and Sylvie Pennes IAE Aix-Marseille - Chemin de la Quille, Puyricard CS 30063 13089 Aix-en-Provence Cedex 2 - France Tél: +33 (0)4 42 28 08 55 (Marion - Fast-track) or 08 56 (Sylvie - Part-time) www.iae-aix.com - www.mba-iae-aix.com - mba@iae-aix.com /IAEAIXMBA

in partnership with :

The global Alumni network A Team-Spirit atmosphere

... AND YOU !


EXECUTIVE EDUCATION

Sun Yat Sen University

Sun Yat Sen University’s leading MBA program Lingnan offers full-time and part-time International MBA programs (English) and part-time MBA programs (Chinese). Lingnan started its MBA education with the strong support of MIT Sloan School of Management in 1998.

Guangzhou

Article by

Xu Xinzhong

PROFESSOR AND DEAN, SUN YAT SEN UNIVERSITY

ingnan offers full-time and part-time International MBA programs (English) and part-time MBA programs (Chinese). Lingnan started its MBA education with the strong support of MIT Sloan School of Management in 1998. Lingnan’s MBA program is among the top ten programs nationally and enjoys an unshakable leading position in South China.

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RICH TEACHING RESOURCES Lingnan has a team of experienced faculty members. In addition, the Program invites many leading global scholars to teach in the program. Lingnan also engages senior corporate executives in course design and delivery. For example, senior executives from Toyota deliver a course in the area of operations management. Every year, 6-10 MIT professors come to Lingnan to conduct seminars for students. HIGH DEGREE OF INTERNATIONALISATION Thanks to the strong support of MIT Sloan School of Management, Lingnan MBA programs carry very distinctive international features. A high percentage of courses are conducted in English, for International MBA programs all courses are delivered in English. International students and exchange students create a diverse and multi-cultural learning environment. Many students go abroad for semester-based exchange or one week global immersion programs to MIT Sloan or other prominent institutions in Europe. ACTION LEARNING The Lingnan MBA programme emphasises Action Learning in the core of its curriculum. MBA students are assigned specific projects that emphasize applying traditional classroom learning into real-life settings while addressing critical business issues facing corporate clients. Each year around 20 projects are provided to students. Lingnan also creates many integrated

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THANKS TO THE STRONG SUPPORT OF MIT SLOAN SCHOOL OF MANAGEMENT, LINGNAN MBA PROGRAMS CARRY VERY DISTINCTIVE INTERNATIONAL FEATURES. international projects, including the China Lab Program with MIT Sloan, the China Seminar Series with Carlson School of Management and Global Business Projects with over 10 universities in America, Brazil, China and India. SUPERIOR GEOGRAPHICAL LOCATION In terms of distance, Guangzhou is located in the geometrical center of the economic circle of Southeast Asia, and therefore it is equidistant from Japan and Southeast Asian countries within a flight voyage of 3 to 4 hours in general. In terms

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

of geographical location, Guangzhou is an open coastal city neighbouring Hong Kong and Macao, the economic, political, and cultural center, and also the commercial center. It is located in the center of the Pearl River Delta, one of the most economically dynamic and flourishing areas in China. Guangzhou exerts an impact on China, East Asia and even the world, with its economic capacity and radiation. POWERFUL INDUSTRIAL CLUSTERS Guangzhou is a major industrial base, manufacturing base and service industrial base in China, with complete industrial supporting facilities and clusters. In particular, the three pillar industries, namely auto, petrochemical and electronic information, have seen the establishment of modern industrial systems. Moreover, its tertiary industries like finance, wholesale & retail, logistics, exhibition and tourism, are also well developed. EG

For further information, please visit: http://mbasys.lingnan.sysu.edu.cn/en


MIT Co-operation China experience Global immersion Business environment Originated from Lingnan University, a renowned private university in the early 20th century, Lingnan (University) College was reestablished in 1988 within Sun Yat-sen University and is now one of the top schools of economics and management in China. Guided by the motto “Education for Service� from Lingnan University, the College provides high quality economics and management education that draws strength from the liberal arts and is tirelessly striving for the advancement of teaching and research of the knowledge of economics and management. http://mbasys.lingnan.sysu.edu.cn/en

Globalization is the trademark of Lingnan and being a pioneer of going global, Lingnan established a joint International MBA program with MIT Sloan School of Management in 1998. The program was the pioneer and leader of Lingnan’s internationalization strategy, and also the first program in China to deliver all courses in English. Guangzhou is a hot destination of investment, teeming with boundless business opportunities.

MBA

TEL: +86-20-84112820 E-mail: lnimba@mail.sysu.edu.cn


EXECUTIVE EDUCATION

Distinct Crew Management

Fighting burn-out and winning Everyone knows how important it is to have a good work/life balance with controlled stress. We hear so much about it that we all think of it as old hat and we move on, disregarding the obvious and paying no attention to the best advice.

Article by

Dr Birgit Friedrich, MANAGING DIRECTOR, DISTINCT CREW MANAGEMENT

ut it is about time you, and all those close to you, listen to the boring old advice about life in general, AND do something about it. If you don’t, you stand to lose. Your health suffers, your capability declines and your human relations, both private and work ones, could be far from optimal. Is there an easy way out? Not really – but if

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you accept help through burn-out testing and coaching it will all be much easier. The first thing you have to admit to yourself is that you need to do something positive with your life. If you suffer from anxiety, lack of sleep (or not feeling rested after sleeping), chronic stress, digestive issues, lack of motivation, lack of appetite, forgetfulness and/or apathy, and anything that might be tied to lack of energy in your life, you should admit to yourself that you need to move your life up a notch and review what you are doing. You could be having problems that range from declining work performance, lack of libido, or taking your work problems and your frustration home (or vice-versa). None of these are necessarily

a big concern – they could all be linked to a simple condition of burn-out. It can be treated – and positive energy can flow into your life again. All it takes is the test – and some specialist coaching. After you recognise that there could, and should – be an improvement, contact Birgit Friedrich personally, and she can guide you to reduced stress, less burn-out, and more satisfaction in life. You will discover a new you – fully re-energised. And even if that sounds like another old, useless cliché, you’ll have to admit it is truly beneficial. EG

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

THE FIRST THING YOU HAVE TO ADMIT TO YOURSELF IS THAT YOU NEED TO DO SOMETHING POSITIVE WITH YOUR LIFE.

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Makemaltamine Coaching and Mediation Services Led by Dr Birgit Friedrich – our team has earned a reputation for reliability and innovation. The coaching the company offers is a life- and work-enhancing exercise which will benefit everyone. Makemaltamine provides two kinds of coaching, both of which can be organized and planned to fit the client’s needs.

Business and Executive Coaching Business coaching is intended for personal improvement or human resource development. It provides positive support, feedback and advice on an individual or group basis to increase personal effectiveness in one’s business setting. This includes executive coaching, corporate coaching and leadership coaching. In all business scenarios, but especially in the small business market, this kind of coaching is as concerned with driving profit as it is with developing the person. Business leaders improve their own personality together with the bottom line of their organization. Executive coaching covers anything connected to personal development, including career transition, interpersonal and professional communication, performance management, organizational effectiveness, managing career and personal changes, developing executive presence, enhancing strategic thinking and dealing effectively with conflict. This aspect of coaching also shows how to build an effective team within an organization. Individuals and organizations all need to improve their operating mode - and with makemaltamine coaching everyone stands to gain and deliver more.

www.makemaltamine.com


HNW LIFESTYLE

Luxury Properties Showcase Ltd

LPS announces new show in South China The Luxury Properties Showcase Ltd., the sole organizer of LPS, has announced that LPS Guangzhou 2015 will be held on Sept 18-20 at the 5-star Grand Hyatt Guangzhou (Canton). PS Guangzhou 2015 will be the 10th consecutive edition of LPS, the previous LPS shows to date having all been held in Beijing and Shanghai. More than 110 companies from 35 countries have signed on as exhibitors for the new Guangzhou show, which will welcome over 5,000 specially invited VIP property investors. LPS Guangzhou 2015 is being supported by 150 official show partners, among them leading Chinese and foreign media organizations. A three-day event dedicated entirely to international high-end properties, LPS Guangzhou 2015 will feature: • Over 110 luxury real estate exhibitors from more than 35 countries: China, USA, Canada, Australia, UK, Germany, Spain, Italy, New Zealand, France, Cyprus, Thailand, Malaysia… • The leading names of the industry: Sotheby’s International Realty, Christie’s International Real Estate, Luxury Portfolio, Keller Williams, Re/Max, Savills, Colliers, Knight Frank, Douglas Elliman, Emaar, Coldwell Banker, etc. • Prestigious and discerning sponsors: Sotheby’s, Christie’s, Maserati, Ferretti Group, Bank of East Asia, France Airlines, America Chamber of Commerce, etc. • Over 5,500 high net worth VIP property investors. • An exclusive setting in the very heart of downtown Guangzhou. • Private VIP events. • A magnificent gala cocktail. • A series of over 50 property seminars & forums. LPS is one of the world’s most important real estate events, its recent show editions bringing more than 5,000 high net worth Chinese elites face to face with 500+ sellers representing 110 prestigious real estate brands and dream homes in 35 countries. The top names in global real estate have committed to participating in what is already being regarded as South China’s most exciting and prestigious property event.

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For the latest updates and news on LPS Guangzhou 2015, please visit: guangzhou.lpschina.com. Those interested in participating in the show as a visitor, sponsor or media partner may contact the organizers via email at info@lps-china.com ABOUT LPS Connecting China’s elites to the world’s finest properties, LPS, China’s leading luxury property show, holds annual editions in Beijing, Shanghai and Guangzhou. Widely considered as Asia’s most exclusive property show, LPS will celebrate in 2015 its 9th, 10th and 11th editions. Over 100 show partners support each LPS event, including leading media and elite brands such as Maserati, Ferretti Group and Bank of East Asia. Connecting China’s elites to the world’s most influential real estate brands, LPS has welcomed over 700 exhibitors from

THE TOP NAMES IN GLOBAL REAL ESTATE HAVE COMMITTED TO PARTICIPATING IN WHAT IS ALREADY BEING REGARDED AS SOUTH CHINA’S MOST EXCITING AND PRESTIGIOUS PROPERTY EVENT. 45 countries, as well as 41,000 show visitors, since its inaugural edition in 2010.

For further information, please visit: www.lps-china.com/en


Donna Livingston Design TIMELESS. SOPHISTICATED. INVITING.


DLIVINGSTONDESIGN.COM | +1.310.273.1855


HNW LIFESTYLE Kiwi Collection

Hotels for people who care where they stay Kiwi Collection is the world’s largest and most diverse curated collection of luxury hotels, with over 2300 hotels in 130 countries.

Article by

Brian Mumby PRESIDENT, KIWI COLLECTION

e provide expert guidance on the best luxury hotels to book for a range of tastes and styles—from Ryokans in Japan and tented luxury camps in Africa, to luxurious palaces in Europe and hip urban hotels around the globe. The collection is curated by a team of travel experts positioned in strategic locations around the world, who carefully select properties based on a rigorous methodology to ensure the highest standards. Kiwi Collection offers a broad range of hotels across many different searchable categories, including City Breaks, Modern Hotels, Spa Resorts, Pet-Friendly Hotels, Business Hotels, Diving Adventures, Golf Resorts, Honeymoon Suites and Safaris. Every hotel in Kiwi Collection is reviewed to ensure it offers truly outstanding guest experiences before it is invited to join. Our experts review and rate each of our selected hotels on a regular basis without regard for brand, size, or affiliation. Hotels that fall below our rigorous standards are diligently removed. As an absolute rule, no hotel is ever allowed to buy its way into the Kiwi Collection. This keeps our collection fresh, honest, and dependable. To consumers, the value of booking through Kiwi Collection is clear: a wide selection of prescreened, premium hotels across the globe, special

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AS AN ABSOLUTE RULE, NO HOTEL IS EVER ALLOWED TO BUY ITS WAY INTO THE KIWI COLLECTION. THIS KEEPS OUR COLLECTION FRESH, HONEST, AND DEPENDABLE.

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treatment, and best rates guaranteed. If a consumer finds a better publicly available rate, we’ll match it. Also, many of our hotels offer free perks just for booking with us. Because of our relationships with hotel owners and managers, many hotels in our collection offer guests personalized service and the little extras that transform their entire stay. Extras include perks such as complimentary upgrades, welcome gifts, early check-in and late check-out, spa or dining credits, or perhaps even a bottle of champagne waiting for them on arrival. In addition, consumers using their Visa premium cards and booking hotel stays through the Visa Luxury Hotel Collection (available through our white-labeled Visa sites and through Kiwi Collection) receive seven benefits: 1) Best available rate guarantee, 2) Automatic room upgrade upon arrival, when available, 3) Free inroom Internet, 4) Complimentary continental breakfast, 5) 3PM check-out, when available,

EXECUTIVE GLOBAL • Productivity, Strategy, Profitability

6) VIP Guest status, and 7) $25 USD food or beverage credit. Kiwi Collection offers the world’s best hotels, special treatment and numerous other perks all at the guaranteed best price. EG

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


LIFE IS A COLLECTION OF EXPERIENCES LET US BE YOUR GUIDE

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Donna Livingston Design TIMELESS. SOPHISTICATED. INVITING.

This is what a Multi Asset Portfolio looks like in real life.

Hopes, dreams, goals – that’s what wealth is really for. At Barclays, we have a history of providing the expertise and experience you need. From private banking to investments to succession planning, we can help you use your wealth to create the life you want. Then you can pursue all your multiple aims and ambitions. Investments can fall in value as well as rise and you may get back less than you invest. Visit barclays.com/more because wealth is more than money.

Wealth and Investment Management

Barclays offers wealth and investment management products and services to its clients through Barclays Bank PLC and its subsidiary companies. Barclays Bank PLC isregistered in England and authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.


DLIVINGSTONDESIGN.COM | +1.310.273.1855

Registered No. 1026167. Registered Office: 1 Churchill Place, London E14 5HP. Products and services may not be available in certain jurisdictions.


EstatEsofLa.com

luxury@miatrudeau.com | 310-281-4890 | CALBRE# 01379660

T H E L I O N G AT E E S TAT E

SOLD - $65,000,000* *Based On List Price

Profile for Executive Global

Executive Global Magazine - Autumn 2015  

The Premier Business and Luxury Lifestyle Magazine for C-Suite Executives and High Net Worth Individuals Worldwide.

Executive Global Magazine - Autumn 2015  

The Premier Business and Luxury Lifestyle Magazine for C-Suite Executives and High Net Worth Individuals Worldwide.

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