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Private Banking.

Sometimes 3 letters make all the difference Because you shouldn’t have to compromise to achieve excellence, ING Luxembourg offers you a full experience in Private Banking. Our experts in asset management, lending solutions, wealth analysis and planning keep up-to-date to offer you the most relevant advice regarding your overall situation.

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DIVERSIFICATION: SLOWLY DYING OR STILL ALIVE? by Sloan Smith, Vice President and Steve Karsh, Principal – Innovest Portfolio Solutions

Sloan Smith, Vice President

Steve Karsh, Principal

Given the positive equity markets in 2016, coupled with the seven-year bull market in the S&P 500 and very strong performance of investment grade bonds, some investors are challenging the value of diversification in their portfolios. With the S&P 500 up over 11% for the first nine months of the year and having generated a 15% annualized return since 2009, it has been difficult for diversified portfolios to outperform traditional benchmarks. Some may be tempted to move away from a diversified portfolio of equities, bonds and alternative investments, and invest solely in a passive equity fund.

with disciplined rebalancing allows investors to maintain the same level of return but at a lower level of risk.

However, there are three key components to diversification that some investors have ignored. The first is whether an equity-only portfolio satisfies the level of risk investors are willing to take based on their goals, time horizon, and tolerance for volatility. The second is that recent past performance in equity markets or any other asset class cannot be extrapolated into the future.

In 2008, large caps were one of the worst performing asset classes with losses of 37%. Even in that horrific year for risk assets, small caps and commodities, which have exhibited greater long-term volatility than the S&P 500 Index, had less severe losses than large caps. Also, looking further back in time from January 2000 until December 2009, the S&P 500 generated a -9.10% cumulative return. Many market observers refer to this time period as the “lost decade” for large cap stocks. A portfolio composed only of large caps has exhibited a much greater risk than is likely suitable for many investors’ goals, time horizon, and tolerance for

The third is that diversification is the only free lunch in investing, because relative to holding a single investment, diversifying across asset classes coupled


Equity Returns versus a Diversified Portfolio Large cap stocks have recorded positive returns every calendar year from 2009 to 2016. However, in all eight of these calendar years, large cap stocks were never the top overall performer. Large caps lost to either REITs, commodities, fixed income, international developed stocks, or small-cap stocks.

volatility. Modern Portfolio Theory defines the concept of diversification as an attempt to optimize a portfolio of assets maximizing the returns and minimizing the risks of the portfolio. This concept becomes very apparent when reviewing asset class annualized returns since 2006 as compared to a diversified portfolio. In this case, a diversified and rebalanced portfolio consists of 25% in large cap stocks, 10% in small cap stocks, 12% in international stocks, 25% in fixed income, 3% in REITs, 20% in hedge funds, and 5% in commodities. Though the performance of a diversified portfolio from 2006 through 2015 finished behind REITs, large cap stocks, and small cap stocks, it finished only behind fixed income and hedge funds when it came to volatility. On a risk-adjusted basis, where the annualized return of the asset class is divided by the annualized volatility, a diversified portfolio had better risk-adjusted performance than all four equity sub-asset classes: large cap, small cap, international, and REITs. Proper diversification involves owning assets that have differing risk/reward characteristics and do not move in tandem. Some assets will generate strong returns while others generate weak returns, but the overall effect should lead to a smoother ride. If you include the method of rebalancing in the diversification process where you sell some of your winners and buy some of your losers to maintain your long-term asset allocation, then you avoid portfolio drift and further minimize risk. David Swensen, Chief Investment Officer of the Yale Endowment, also found that diversification coupled with proper rebalancing can add 0.4% of return each year. Though large caps have been strong performers since the lows of 2008, they remain subject to severe losses over market cycles. Diversification is the best solution to help dampen the severe ebbs and flows that are to be expected in single asset class investing. Short-Term versus Long-Term Effects of a Diversified Portfolio Financial markets wasted no time kicking off 2016 with a new stretch of volatility. The S&P 500 got off to its worst two-week start in any calendar year in history by falling 8%. If you couple this drubbing with the

reaction to the Brexit referendum, when international markets where down 10% over two days, it can be challenging for investors to stay focused on their longterm strategic plan and asset allocation. Over the short-term (one to three years), correlations between asset classes may increase, losses may be significant, and patience and discipline may be severely tested. But to better understand the benefits of diversification on longer-term portfolio returns it is best to focus on the period surrounding the financial crisis from 2008 to 2009. Investors who remained in a diversified and rebalanced portfolio through the market bottom of 2009 would have recovered all of their losses in 3 years and would have more than doubled their investment by 2015. By contrast, investors who held an equity-only portfolio would have had to wait four and a half years to reach their previous peak. Turbulence in the market can come at any time, but having a diversified portfolio with clearly defined risk/reward objectives can be essential to long-term investment success. Diversification Going Forward The main question that investors should be focused on is what does the future hold for the financial markets? It can be argued that quantitative easing by the Federal Reserve has lowered overall market volatility and driven strong performance in bonds and large-cap equities. Over time the Federal Reserve is expected to move away from its accommodative policy, which would likely have a negative effect on bonds and force investors to look at alternative asset classes (i.e. hedge fund or real estate) for protection. With the eventual increase in interest rates and removal of quantitative easing from the financial system, volatility in the financial markets should also be expected to pick up substantially. Ultimately, investors who maintain diversified portfolios should be better suited to capture future market opportunities. They are also more likely to have a less volatile experience along the way. Innovest Portfolio Solutions, LLC For more than 20 years, Innovest has provided excellent client service as well as forward-looking, innovative investment solutions for endowments and foundations, retirement plans, and families. We are an independent provider of investment-related consulting services and work on a fee-only basis.


BEATING THE BOND MARKET BY Chris Chapman, senior analyst, Strategic Fixed Income manulife asset management

Anyone invested in global bonds may have had a nasty shock back in November. Emboldened by Donald Trump’s election victory, investors sold bonds and other safer assets in favour of riskier shares they hoped would benefit from his plans for economic growth. Headlines around the world screamed of trillion dollar losses in bonds. Some three months on, does global fixed income represent a good investment? As always, the assets you invest in and what you do with them depend wholly on the outcome you’re trying to achieve. In fixed income, many professional fund selectors are looking for capital preservation with a level of income healthily above that generated by cash or government bonds. At the end of a long bull run and at the start of a period of rising interest rates this is no easy job. However, a portfolio of well-chosen global bonds that may be positioned differently than traditional global fixed income indices, coupled with sensible calls on currencies and interest rates, can still deliver an attractive level of income and capital preservation. An unconstrained global fixed income approach has the flexibility to dynamically allocate across countries, sectors and securities and take currency positions not only to reduce risk but also to generate precious alpha. Done well, the idea is that you could gain better returns than the market, or rather an index, but with no additional levels of risk. In other words, you aim to take a smoother road to a higher summit than a rockier and possibly lower path. Here’s how it works. Benchmarks – what are they good for? The first thing is to be aware of is how the index is positioned but avoid using it as the primary foundation for investment decisions. These days, the sort of indices used by many global bond funds have big concentrations in high quality, global government debt. Given the current low yield environment, these securities bring


high levels of interest rate risk. What’s more, there is the real possibility of an uptick in inflation across the globe as well as changes to easing policies by central banks this year. At this point, it is fair to assume the Federal Reserve will continue to hike rates. That makes interest rate sensitivity the key risk to the bond market. Rate card - In fixed income, it can take a surprisingly small move in interest rates to have a large and lasting effect on a bond portfolio. Our analysis, below, shows that if interest rates rise by just 1% then the total returns delivered by the global bond market – in this case, represented by a popular bond index – would be expected to fall by 4.5%. The chart below illustrates the 12-month horizon return for the Bloomberg Barclays Global Aggregate Bond Index over the last two and a half decades for a 1% rise in interest rates. It shows growing sensitivity to changes in interest rates, commonly known as duration, and a plummeting yield. Is this a worst-of-both-worlds scenario? Certainly, a market at risk of falling if interest rates go up that also offers declining compensation for that risk is not an ideal scenario in our view. The chart facing - Bloomberg Barclays Global Aggregate Index 12 Month Horizon Return for a 100 bps Increase

How to manage this very real risk in such a difficult environment? - In our view, a number of things help: decades of experience of actively managing fixed income portfolios in challenging markets; making decisions that carefully balance the need for yield with duration risk – for example in the careful selection of longer dated credits; and a willingness to look at the full range of markets, sectors and securities available to a global fixed income portfolio manager – given that some markets are at greater risk of rising rates than others.

Liquidity, liquidity all around, but not a drop to drink? Long-term investors seek to buy and sell the right assets at the right price.

Source: Bloomberg, Barclays, Management, December 31, 2016



At the time of writing we believe that a broadly defensive stance is a sensible approach – but within that, there are potential pockets of attractive opportunities available in certain riskier segments of fixed income. For example, bank loans, which have coupons that reset periodically and may offer protection against rate rises, unlike traditional fixed rate bonds by generating higher income as interest rates rise. And certain emerging markets, such as India and Indonesia have seemingly solid fundamentals and attractive openings. Credit where it’s due - In our view, the decisions behind sector and country selection, the rotating of capital through the areas best placed to deliver returns better than the market but without more risk, can be the largest single contributor of a global fund’s outperformance. For over a year now we have seen volatility and significant performance deviations across sectors, credit qualities and industries. Will anything change that? We believe that the Trump presidency, Brexit, rising political risk in Europe and recent developments in Japanese monetary policy suggest investors should steel themselves for more volatility and uncertainty – not less. It’s a difficult world today. But, with the broadest possible investment universe, we believe that volatility and business cycles will always create opportunities to dynamically rotate the portfolio.

There is no doubt in our mind that liquidity has generally declined in global bond markets. In our view it was not so long ago that banks used to ‘warehouse’ securities, holding onto them to create a pool of securities that could be used to benefit just about everyone in the system. Now, regulatory and commercial pressures have reduced the ability of banks to maintain such warehouses of securities, reducing this role to that of little more than a toll collector, meaning they act as an intermediary between buyers and sellers. Of course, that’s an issue for fund management companies rather than their clients. Well-positioned fund managers would likely use their scale and skill to manage this risk with no or minimal impact on the professionals who buy their funds. But it is a risk that has increased, and it requires careful management and monitoring. Common currency Scouring the world for attractive and sensible investment opportunities requires exposure to multiple currencies. But the risk here is that, as with interest rate movements, small changes in currency markets can have large effects on the returns delivered by a basket of bonds, no matter how well chosen they are. Currency is not for the faint of heart and experience very strongly indicates that currency movements may be seen as an additional method of boosting the returns of a global bond portfolio rather than simply as an unhelpful risk that must be managed. Such an approach can also bring valuable diversification benefits. Tying it together Add all these parts together, and an investor in unconstrained global fixed income has the potential to realize benefits of increased returns in a low yield environment, diversification and protection in a rising rate environment, all in a risk profile consistent with traditional fixed income approaches. These are benefits that traditional fixed income benchmarks will likely no longer provide going forward, or stated differently, in a challenging fixed income environment, investors will increase their chances of “beating the bond market”.



In the picturesque southern German town of Sindelfingen, just a short drive from Stuttgart, fine artisanal craftsmanship is still thriving. Here, veritable treasure chests are made using age-old tradition and elaborate practices for discerning clients ranging from royalty to celebrities looking not just to store their most valuable possessions, but to display their power and status. Döttling’s story is steeped in history. With humble beginnings as nothing more than a locksmith shop in 1919, the company has stood the test of time, passed down through four generations. Today, the brand is helmed by Andreas K. Schlittenhardt, who has transformed the business into the leading global manufacturer of luxury safes. “We were filling a gap in the market,” explains Andreas. “We started out restoring antique safes until many of our clients began asking us if we could make products that met modern security standards.” No luxury has been spared in the process of creating their


own elaborate security devices. For each step of the production process, Döttling employs skilled artisans, ranging from restorers and smiths to leather workers, painters and security specialists, who meticulously build their impressive safes by hand, each a bespoke masterpiece designed with the client’s specifications and requirements in mind. From fully integrated watch winders to keep timepieces ticking to humidors providing the ideal storage conditions for cigars, there are few limits to what can be done to one of Döttling’s safes. “Our clients are used to driving the most luxurious cars, living in lavish homes – and yet each time they get to unveil their safe, it’s like watching a small child on Christmas morning,” boasts Andreas. Each safe goes through an arduous production process utilising the teams’ knowledge of traditional crafting techniques. Some are upholstered in supple leathers, such as the Liberty Barcelona, inspired by Ludwig Mies van der Rohe’s iconic Barcelona chair. Others are gilded with 24-karat gold leaf fittings or plated in chrome. Each is a work

of art in its own right. “We are very proud of the work we do.” Innovation is at the cornerstone of the Döttling brand, with an impressive product list in tow, such as the limited Narcissus model, the result of a unique collaboration with none other than the fashion tycoon Karl Lagerfeld. In 2013, Döttling released its Guardian line – a unique portable vault enabling easy mobility. This compact cylinder-like piece of luggage proves looks can be deceiving: behind the calf leather exterior is a nigh-impenetrable fortress of metal and military-grade polycarbonate. Safety is paramount to every safe, with state-of-the-art security features like fingerprint recognition and GPS tracking available. The Fortress safe, billed the safest luxury safe on the market, provides certified insurance coverage of up to USD 1,000,000. The price range is vast, largely dependent on the individual specifications of the client. To meet a growing demand for larger safety facilities in private residences, Döttling has

developed their custom Collector Rooms. Clients can choose to either create their own private safe room, which is secured and alarmed with an interior of vitrines and display furniture or to integrate high-security safes into the existing interior of a non-secure space. Client involvement is key in creating these bespoke solutions, as is the input of an interior designer, who assists from the first step to ensure the utmost perfection. Even the most discerning client is left with no desires unfulfilled – materials available range from exotic leathers and rare wood to mother of pearl and gold. Andreas’ favourite pieces are still the one-of-a-kind antique safes, which have been suitably dubbed as the Legends series. Many of the safes come from private homes or royal households from around the world, from a mid-19th century Napoleonic coffre-fort to a work commissioned by the Medici in the 18th century. “We love to break into locked safes – ones with keys that have been lost over the years,” grins Andreas mischievously. “It’s a lot of fun more-or-less acting like a burglar.” But it’s no easy task to break into the safes. Many of them have hidden keyholes, and it is a cumbersome process to replicate centuries-old keys. Quality, fine German craftsmanship and precision go into every step of Döttling’s manufacturing process. The brand’s innovative spirit and desire to push boundaries endures, resulting in stunning works of art that will be treasured for generations. One thing is certain: Döttling safes are often as rare and as valuable as the contents they protect.


BEST PRACTICES FOR COMBATING CYBERCRIME IN THE FAMILY OFFICE SPACE By: Edward V. Marshall, Family Office Specialist, Citi Private Bank

There were 781 data breaches reported for 2015. The estimated annual cost of cyber-attacks is $400B and the estimated global cost of cybercrime will reach over $2T by 2019. These are a few staggering statistics that provide insight into the nature of a risk management problem that is often discussed but whose nature is seldom wellunderstood. With this backdrop, data breaches continue to increase annually. There is no shortage of news stories describing cyber-attacks. Attacks ran the gamut from theft of credit card information, exposing of sensitive medical or financial information, hacking the servers that help run the Internet, pilfering political documents, and shutting down power generation in parts of a country at war. One key trend in the cybersecurity landscape is that the threat is actively evolving. The volume and sophistication of threats are increasing. Whereas perpetrators can make countless attempts but only need to succeed once, those affected by cyber-attacks face potentially overwhelming effects from just one cybersecurity failure. The hacker threat has expanded beyond opportunistic individuals using common techniques to include nation-state actors and professional cyber criminals that are properly motivated and armed to wreak havoc on information systems. Enter Family Offices. Family Offices represent and manage tremendous amounts of wealth around the world. Family offices represent 8% of the global UHNW population but represent nearly 50% of global UHNW wealth. In North America alone, there are an estimated 4,500+ Family Offices (Source WealthX). Complex and dedicated efforts to ensure cybersecurity are often given insufficient attention


within a Family Office unless a serious breach has occurred in the past with the family. A recent report by Campden Wealth indicated that 15% of Family Offices surveyed were victims of a cyber-attack with losses generally of $50,000 or less with one incident that cost a family more than $10 million. Don’t let the lower dollar value of losses fool you into a sense of security. Hackers use these lower numbers as demands so that people will choose payment to get a quick fix versus trying to fix a problem. Hackers are often impatient and often prefer smaller “sure thing” targets versus drawing unwanted additional attention (e.g. the FBI) through very large demands. Willie Sutton, an accomplished bank robber, was once asked why he robbed banks to which he replied: “because that’s where the money is”. This problem creates a similar dilemma for Family Offices and makes them a lucrative target for hackers. Many Family Offices have the “wealth” commensurate with small and medium enterprises, but they typically don’t put in place the same levels of security. This, unfortunately, has often led them to inadequately understand and protect against cyber-attacks, which are often regarded as problems for large corporations and governments. This complacency usually makes Family Offices an easier target when compared to other institutions or businesses. However, looking at wealth alone as a predictor of cyber-attack threats is myopic. Specifically, Family Offices face complex cybersecurity challenges because of these six differentiating factors: informal governance structure, efficient service vs. effective security, underinvestment in critical information technology systems, heavy reliance on small staff with outsized access to critical data, security risk from external vendors & partners and fame & publicity. News headlines and the steady drumbeat of warnings of the consequences of improperly preparing against cyber security risks have made the threats look like a “hydra-tackle” one problem and two more appear.

Family Offices are asking: What should we focus on? Is protection against the threats worth the expenditure? Who can we trust in the cybersecurity market? Are there benchmarks from other sectors we can emulate? Regardless of what stage of cybersecurity preparedness Family Offices find themselves in, they should start developing a comprehensive information security program that is flexible and can incorporate lessons learned and adapt to new threats. We recommend that Family Offices consider a framework on 1) technology, 2) people, and 3) process when implementing and improving their cybersecurity programs. Too often families will sacrifice training over a new hot technology service or ignore simple improvements like annually checking their staff’s software and devices to make sure they are updated and conducting routine training on cybersecurity protocols. Furthermore, Family Offices need to identify what and where critical digital assets are. Family Offices have to understand what the “crown jewels” are and determine if they are safe even if their network has been breached. People are often the weakest link in the information security system for a Family Office. The level of awareness of information security threats and the proper ways to combat them has great variability. Therefore, cybersecurity education should be a key part of family planning and business operations meetings. A simple way to help shore up cyber defences is the through the creation of Family Office cybersecurity policies. These policies can be derivations of parent companies that created the wealth that are customized to the unique nature of the Family Office. Policies should include recommendations on how to prevent cyber-attacks and what to do in case a breach is detected. Policies should be updated regularly, and Family Office teams should regularly certify that all members (including the Principal) understand the policies and procedures. As awareness grows, so does proliferation of published information on cybersecurity issues for Family Offices. Staff should regularly research cybersecurity issues from Family Office associations, webinars, podcasts, and on LinkedIn. Family Offices should also examine private and public cybersecurity organizations such as APWG (, ISACA (https://, No More Ransom Project (https://www., the Cyber Threat Alliance (https://, the Department of Homeland

Security ( or the FBI ( investigate/cyber). There is also a cottage industry of security professionals and organizations that are springing up to cater to Family Office security and specifically cybersecurity issues. Family Offices should contact their attorneys, accountants, corporate Chief Information Security Officers (CISOs), and other professionals to identify suitable cybersecurity partners. Family Offices should also consider working with internal or external partners to test staff awareness of these policies. For example, a family could work with internal teams or hire an outside vendor to perform “white hat” simulated cyber-attack tests against staff to determine weak points and increase general understanding of threats. These tests are usually “pretend” malicious attachments, Tweets, and Facebook messages with pretend malicious shortened URLs. If a Family Office staff member clicks on the link, they typically will get a “gotcha” surprise. Regardless of the type of training, Family Offices should consider refreshing and educating no less than on a quarterly basis. In conclusion, Family Offices face a challenging world as cyber criminals look to exploit their very nature. Threats continue to evolve in cyberspace because new defence mechanisms lead to innovative new attack methods and vectors. Building a resilient, cognizant, and learning culture around information security is important for Family Offices of all sizes and jurisdictions.

Edward V. Marshall Citi Private Bank


TOP 5 FAMILY DYNAMICS IN PHILANTHROPIC FAMILIES AND WHAT YOU CAN DO ABOUT THEM PHILANTHROPY ARTICLE Even in the most successful families, misunderstandings, disagreements and power struggles can occur—and that might be on a good day. Add wealth to the mix, and family dynamics become a tricky business that can hinder good decision making. This is especially true when family members must make decisions together about money—whether that’s making money, keeping money, or giving it away. How can family offices help their families navigate these complex and confidential matters in a way that supports the best interests of the family and its philanthropy? First, know that all families operate in ways that are influenced by family dynamics. Although a family itself is a larger system, it comprises individual members who have their own interests, goals and preferences. These individuals are born into certain roles in the family and may consciously or unconsciously play out certain scripts as a result of their role, be it patriarch, a matriarch, son, daughter, sibling, cousin, niece, nephew. Family dynamics is the way in which members of the family interact with each other, based on their roles, as well as their personality or their individual style. When working in a family office setting, it helps to be prepared. Here are five of the most common family dynamics that can arise in philanthropic families—and some quick tips to help mitigate them. 1. The family matriarch and/or patriarch establishes a philanthropic foundation or fund with the hope (i.e., expectation) that the adult children will carry on the work. The challenge here is that if the parent’s haven’t involved the children early on in the family enterprise or philanthropy, the children may respond to the “opportunity” with delight or dread. The children may


Suzanne Hammer

Hammer & Associates feel that philanthropy is their “parent’s thing” or feel pigeonholed by the funding focus set by the parent’s. The younger generation may also move away and no longer feel connected or interested in giving to the geographic area designated by the parent’s. What can families do? Talk with kids in advance, especially as those kids enter early adulthood. Find out about what their interests are, and how they might intersect with the foundation and/or family philanthropy. If geography is an issue, discuss ways the younger generation can honor their parents’ wishes, and yet connect and feel rewarded in the work. Use discretionary giving as an option to meet various community needs and family interests. 2. Founders of the family philanthropy have a hard time passing on control to the next generation.

Some family leaders aren’t willing to let go and are bent on maintaining control—even from the grave. They worked hard to build what they have, and want their wishes to be known and followed. They perhaps are in denial of their own mortality and want to ensure that their legacy lives on.

as a family grows and more people become involved in the philanthropy, the level of tension and competing interests can mount. Family members from different branches may have little in common, or carry personal problems or resentments that get in the way of the work.

What can families do? Encourage the family leader to create a donor intent letter or ethical will that outlines his or her wishes for the family philanthropy. Talk about ways to honor the family leader and legacy, while remaining flexible to future needs and family interests. Engage in succession planning for the family enterprise and philanthropy as early as possible to introduce these discussions in a non-threatening way.

What can families do? Start with what everyone has in common—which is the desire to give—and add some structure to it. Determine what is normal, healthy disagreement, and what is simply inappropriate. If the undercurrent of conflict overruns the philanthropy discussions, hire an outside facilitator who is skilled in family dynamics. Make sure every family member has an equal voice. Create agreements for how the family will navigate conflicts as they arise. Hire a skilled facilitator to help.

3. Family members have different beliefs, communication or individual styles, which hinders their ability to work well together. Families can make each other crazy with stylistic and ideological differences. Imagine a boardroom full of family members who fall across the political or religious spectrum. One adult sibling who won’t stop talking, and another sibling who can hardly get a word in. A millennial who will only a respond to text messages and takes notes on a laptop. A traditionalist who has no time or patience to learn technology. Sound like an interesting meeting? What can families do? It helps to create a common framework for communicating that can help philanthropic families focus on the good they are there to do. Practice good governance set ground rules for meetings, and remind family members why they are there in the first place. Ask family members to bring with them certain details about the organizations they are interested in supporting, and share that with the group. Create agreements for how the family will communicate about the philanthropy outside the meetings as well. 4. Family members are in active conflict with one another, and they bring their personal beefs into the boardroom. Conflict is a natural part of all human relationships, and

5. Family members draw nonfamily members or staff into side conversations, choosing loyalties, and other unproductive family dynamics. In some cases, having a family office executive or staff in the room can keep family members on their best behavior. However, that’s not always the case. If not careful, family staff can get sucked unaware into the undertow of family woes. What can family staff do? Expect family conflict to come up. Know that it’s not your job to fix it (nor can you fix it if you tried), however, you can help the family find the right resources to navigate it. Maintain a neutral, objective position where everyone is heard, there is no right or wrong, and everyone saves face.

Suzanne Hammer of Hammer & Associates gives family offices the tools they need to engage in and connect with their philanthropy—helping philanthropic individuals and families pair their passion with proven strategies. To learn more, look for her forthcoming EngagedPhilanthropy™ toolkit Family Dynamics: A Family Office Guide to Meaningful Giving at or contact 303-319-3029. Follow @philanthrpysolut.




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Effortless, exclusive and exhilarating, Bentley EXP 12 Speed 6e concept brings luxury ownership experience to EV sector Luxury customer demands met by Bentley levels of craftsmanship and refinement, with electric performance and grand touring capabilities Bentley’s vision includes rapid inductive charging and connected on-board concierge services EXP 12 Speed 6e concept to gauge public and customer feedback to shape Bentley’s future luxury strategy Concept showcases future Bentley exterior and

The EXP 12 Speed 6e is a concept to show that Bentley is defining electric motoring in the luxury sector, with the appropriate technology, high-quality materials and refinement levels you’d expect from a true Bentley. This concept enables us to engage with luxury customers and gather feedback on our approach. “Bentley is committed to offering an electric model in its future portfolio, and we are interested to receive feedback on this concept,” Dürheimer concluded. The Luxury of Electric: Effortless, Exclusive and Exhilarating An all-electric Bentley will not compromise the quality, refinement and high-performance levels expected of the luxury brand. These renowned Bentley characteristics such as immediate, effortless surge of torque and grand touring range will be combined with new highperformance technology such as rapid inductive charging and state-ofthe-art onboard concierge-style services for an effortless ownership experience. Bentley’s vision is for customers to benefit from high-speed inductive charging and provide a range sufficient for grand touring requirements. An electric Bentley would, for example, be able to drive between London and Paris or Milan and Monaco on a single charge and the onboard experience will be enhanced for both driver and passenger thanks to the integration of state-of-the-art technology. A fusion of cutting-edge technology and beautiful materials is evident right throughout EXP 12 Speed 6e’s luxuriously appointed cabin, ensuring that the brand’s use of technology is not cold or emotionless. The entire central console, for example, is hewn from a solid piece of elegantly curved glass encompassing a high-definition OLED screen. All of the car’s principle onboard controls are accessible from here, including navigation, entertainment and climate control. Handmade, cut-glass sections on the steering wheel contain the


controls for media, communications, navigation and car setup. There are also two buttons featured at the top of the cutaway steering wheel, one offering an instant performance boost and the other the ability to limit speed, in urban areas for example. The passenger, meanwhile, has their own control panel on the front fascia with access to social media, email and entertainment. Exquisite copper elements around the gear selector, Bentley Dynamic Drive dial and in the door veneer panels are integrated into the cabin to highlight the electric performance potential of the concept’s advanced new powertrain. The car’s intelligent infotainment system is the central brain to access many real world services using connected-car Apps. When rapid inductive charging is not available, EXP 12 Speed 6e can be connected to a mains AC power supply via the auxiliary charging point, subtly concealed behind the rear number plate. A Commitment to an Electric Future Bentley believes that the concept will open discussions with luxury car buyers of the future – millennials, members of Generation C and the rising affluent in developing economies - to understand the desired expectations from a future electric luxury car ownership experience. The luxury brand’s electric car strategy includes the introduction of PHEV models across the Bentley model range over the next few years, starting with the Bentayga in 2018.


Photographs Copyright BENTLEY


FAMILY OFFICE A NEW TREND IN ISRAEL Israel is a small country, about the same size as Belgium in Europe or New Jersey in North America. It is located on the eastern shore of the Mediterranean Sea and has excellent access by air and sea to Europe, Africa, Asia, and North America. Recent statistics show that Israel’s population of 8,5000,000 is comprised of 75% Jews and 25% nonJews all of whom enjoy equal legal rights in all areas of life. Israel is a country of immigration. More than 40% of residents in Israel were not born in the country. Some wealthy immigrant families relocate with their assets to Israel and others may keep part of their wealth in the country of origin. There are no formal statistics available regarding the number of high net worth individuals in Israel. A millionaire is defined, generally, as a person with more than US$1 million in liquid assets. An ultra-high net worth individual (UHNWI) is defined as one with over US$30 million. According to the report of Berkshire Hathaway Company: 1. There were 79,186 HNWIs in Israel in 2015, which collectively held US$447 billion in wealth. 2. The Israeli HNWI population rose by 2.9% in 2015, following a 3.0% increase in 2014. 3. The Israeli HNWI population is forecast to grow by 17.7% to reach 96,790 in 2020, while HNWI wealth is projected to grow by 24.3% to reach US$579.7 billion. 1. Family Business in Israel How do Family Businesses cope with their present and future ownership and management of the business? The following stories of family businesses in Israel will demonstrate this: Iscar family business - Stef and Eitan Wertheimer. Iscar was founded in 1952 by Stef Wertheimer in the Western Galilee town of Nahariya and moved in 1982 to the Tefen Industrial Zone, about 20 kilometers away. In 1984 Stef, the father, handed over the reins to his son Eitan. In 1995 Eitan Wertheimer passed the CEO’s seat to Jacob Harpaz (a non -family executive) and


Dr. Alon Kaplan

Advocate & Notary went on to serve as chairman and later president. Iscar is headquartered in the northern Israeli community of Tefen and is now formally known as International Metalworking, or IMC. In 2006 Berkshire Hathaway bought an 80% stake in Iscar for $4 billion. At a later stage, the son Eitan, sold to Berkshire Hathaway his 20% share for USD 2 billion. The deal gave Iscar a total value of about $ 10 billion, about double its valuation when Berkshire Hathaway bought its initial stake for $4 billion. In an interview to the Israel economist newspaper Eitan was quoted: “it was important for us to sell the business before family problems arise. We see what is happening in other family businesses and there is no need to wait for problems. … It is preferable that each generation will start his new own business.” 1.2. Keter Plastic company, another “happy end”. Sami Sagol developed the Keter Plastic company founded by his father in 1948 .The company is the world’s leading manufacturer of plastic consumer products.

Keter Plastic develops, manufactures, and distributes throughout the world a broad range of plastic consumer products. The group has over 25,000 sales points around the world, 18 manufacturing plants, and two distribution centers. The company has 4, 000 workers, including nearly 2, 000 in Israel, and its products are sold in 100 countries. Keter Plastic signed an agreement for the purchase of 80% of the company by a London based investment fund, BC Partners. The Sagol family would continue to own 20% of the company. Israeli media estimate the acquisition to be at a company value of $1.3 billion. Keter Plastic’s 2015 sales totaled €800 million. According to Forbes magazine Sagol decided to sell the business since the third and fourth generation of the family, four daughters and grandchildren developed other careers and did not intend to continue the family business. 1.3. Strauss family business -The successful story of Strauss family. The Strauss family business was established 70 years ago by Richard and Hilda Strauss new immigrants from Germany. A small yard with two cows started a business which today is a national and public company working with international business partners PepsiCo, San Miguel, DANONE, Unilever and others. It is the 4th company in the world for coffee production and trade employing 14,000 people worldwide with an annual turnover of USA $ 2 Billion. 39 years after the establishment of the business the founders transferred the ownership and management to their son. In the year 2000 the family business was passed on to the third generation who is running the business today together with professional executives who are members of the board of directors and not members of the family. According to Ofra Strauss the granddaughter and president of the business today “This was implemented pursuant to a well prepared organizational program which included members of the family committed to the original business vision of the family founders.” 2. Transfer of family business to future generations. There are 3 possible ways to transfer family business to future generations:

There is no gift tax in Israel between members of the family. The law of gift 1965 governs this procedure. The founders of the family business may transfer ownership of the business at the time they choose to do so. 2.2. Succession The Succession Law 1965, governs individuals who were residents of Israel or owned assets in Israel at the time of their death. The fundamental principle guiding this legislation is that of testamentary freedom based on a last will and testament, made under the Succession Law. The freedom of succession enables the founder of the family business to name in his testament who will be the leaders continuing the business and what would be the share of the other members of the family. Succession procedure has its perils. The heirs, members of the family, may challenge the testament and a court battle may arise. This happened in the famous case of the Offer family: The late Y. Offer had owned a company which controlled substantial holdings in a bank and a real estate company with ownership of some of the largest shopping centres in Israel. The late Y. Offer bequeathed most of his assets to his daughter ( 51.7% of shares in Offer investment company) and 15%shares to his son. The son contested the validity of the will, and after a long trial the will was declared valid, and a probate order confirmed the wishes of the late Y. Offer’s will. 2.3. Transfer of the family business to future generations by creating a trust. The Trust Law A trust structure is recognized in many countries as a good way to hold assets under a central management and regulate its activities according to the wishes of the head of the family business who would be the settlor of the trust. In Israel, the trust has been in part of the society for many years even before the establishment of the state in 1948.The Israel trust law 1979 defines a trust as the duty imposed on a trustee to hold or to otherwise deal with assets under its control for the benefit of another or for some other purpose.

2.1. A lifetime gift.


Creation of a trust A trust may be created either by contract or by deed: 1. A trust created by contract requires an agreement between the settlor and the trustee with no specific procedure necessary for its validity. 2. A Trust created by deed must be in writing and signed in the presence of a notary 3. This Trust is named: “Hekdesh” and becomes operative during the lifetime of the settlor upon transfer of the assets of the trust to the control of the trustee. 4. A valid testamentary trust must comply with the formal requirements under the Succession Law for executing a will. These include signing the will in the presence of 2 witnesses or a notary. A Testamentary Trust will become valid after probate of the will which contains the instructions to create a trust.

people. However, numerous studies suggest that, despite their economic importance, family business’ intergenerational longevity can be very limited, with as few as 10 percent remaining in family ownership by the third generation”(Step Journal February 2017). It remains to be seen if Israel will follow the UK trend. Dr. Alon Kaplan, Advocate and Notary

Dr. Alon Kaplan, LLM (Jerusalem), PhD (Zurich), TEP practices law in Tel Aviv specializing in Trusts and Estates. He is General Editor of Trusts in Prime Jurisdictions (4th edition, April 2016), the Israel Country Correspondent for Oxford Journals’ Trusts and Trustees , author of Trusts in Israel: Development and current practice Conclusion (2015 Helbing Lichtenhahn Verlag) and Trusts Family business in Israel is an interesting arena for and Estate planning in Israel (Oct. 2016, Juris family offices, asset managers and trust and estate Publishing) . Alon may be contacted at: alon@ practitioners “According to a recent report by the Institute for Family Business, the family business sector in the UK accounts for a quarter of the nation’s gross domestic product , employing nearly 12 million

One of the family. The only system you need for your Single or Multi-Family Office. NavOne is the world-leading wealth management system delivered by Touchstone and powered by Microsoft Dynamics NAV technology. Used by Single and Multi-Family Offices, small to large trust and fund administration companies, private equity firms and specialist legal and accounting practices across 24 global jurisdictions, NavOne is proven to increase operational efficiencies and reduce administration costs and enable secure and selective private client access to their data. For more information call 01534 818900 or visit Delivered by

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FINE ART DOMOS CONSULTANTS DOMOS FINE ART is experienced in dealing with rare off-market collections of fine art.

DOMOS FINE ART has a portfolio of very Fine Art on sale (Off Market) on behalf of our clients which include works by Caravaggio, Renoir, Monet, Van Gogh, Matisse, Rembrandt, Picasso, Rouault, Bonnard, Raphael and more.

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Valuation and Sale of Fine Art Locate specific pieces of Fine Art Assist in verifying provenance of Art Auction representation

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A TIMELESS TRADITION A brand new service of sparkling hand-forged silver flatware. Sounds interesting. But what is it? And why is it so special? Quite simply, it’s the finest newlymade sterling silver flatware in the world, each piece lovingly raised by hand by a small group of English craftsmen who are keen to preserve the quality and traditions of their illustrious past. M.P. Levene, one of London’s leading retailers of the finest English silver, specialises in the production of new hand-forged services of silver flatware. This is how all solid silver flatware was made in England before around 1900 and the advent of mechanisation. It’s a much longer process because it takes a lot more work, but the quality shines through.


Hand-Forging a Piece of Silver Flatware Each spoon or fork starts as a flat ingot of silver, which is heated and hammered into shape entirely by hand by one of the company’s skilled craftsmen. Next, it is placed in an enormous Victorian press where the pattern is stamped on both sides using special lead dies, some of which are up to two hundred years old. The piece is then trimmed and the edges are smoothed. Each piece is then tested for its 925 silver purity at an independent institution - the London Assay Office. If it passes, it is stamped with a special set of marks to confirm its authenticity - a legal requirement. This office has been testing and marking English

silver since 1544, in the reign of King Henry VIII. Finally the curve of the handle is gently hammered into shape and the piece is polished. Clients immediately notice that the bowls are deeper, the shells and scrolls of various patterns are more defined and the pieces feel much heavier in the hand than contemporary machinemade equivalents. The silver knife handles are also produced to the highest standards with stainless steel blades. A Wealth of Patterns M. P. Levene offers a range of sixteen patterns, all traditional English designs. Rat Tail is one of the plainest, originating from the early Hanoverian silver flatware from around 1710. With

a customary long ridge running down the front of the handle. The fork is shown here with three tines - also available with four. They can also make traditional pistol-handle knives. Fiddle, Thread and Shell was first produced in England around 1810, as a variant of the plain Fiddle pattern that had come over from France. It features a thread around the border with a shell at the end of the handle and is a very popular design. Perhaps the most extraordinary pattern in M.P. Levene’s range is Chased and Pierced Vine. It is illustrated here in silver-gilt (gold-washed) -- each piece is solid silver, but plated with gold. The effect is stunning. It was first produced for London’s Great Exhibition of 1851, and each piece is carefully pierced and then chased

by hand in the form of interwoven grapes and vines. It is known as the ‘King of Patterns’. Hanoverian Engraved pattern was first made in the 1780s, when a special style of engraving called brightcutting was invented. Facets, rather than lines, are cut by hand into the surface of the silver, making it sparkle when held up to the light. It is one of Levene’s most elegant designs. Elizabethan is a High Victorian pattern, first made around 1850. Each piece is heavily decorated in Romanesque style, with shells and scrolls above trails of husks. It is a gloriously decorative design that feels particularly heavy in the hand. Bright Vine also dates from around 1850, and features a lovely combination of grapes and vines with shell and leaf ends. An attractive pattern. ‘Art Deco’ Grecian is a relatively modern

pattern by M.P. Levene’s standards, dating from the 1930s. It is based on the plain, straight features of Ancient Greek architecture, with a sunken border and cut corners in classic ‘Art Deco’ style. Your Own Special Pattern Sometimes a client comes to M.P. Levene with sketches for a bespoke silver flatware pattern for their home, or even their yacht. A complete new set of lead dies is then created before production of the silver flatware can begin. This unique design remains the copyright of the client who has sole use of it in the future. To discuss commissioning your own hand-forged silver flatware service, contact Mr. Martin Levene of M.P. Levene of London. Email: Tel: 00 44 + (0)7710 240 515



by Geralda Buckley & Álvaro Becerra Before launching into a discussion about family offices and corporate service providers, a few facts are worth considering about families and what is probably their number one asset, their business. Only a little more than 30 percent of family businesses survive into the second generation, even though 80 percent would like to keep the business in the family. By the third generation, only 12 percent will still be viable, shrinking to 3 percent at the fourth generation and beyond. The disconnect between what 80 percent of families intend and the far bleaker reality can in part be attributed to a failure to plan for the family dynamics issues involved in family business succession. (These facts were derived from “The Role of the Family Office in Business Succession” by David Thayne Leibell). Today we see increasing numbers of families understanding the benefits in setting


up family offices. This has been driven mainly by concerns about wealth preservation and succession planning within family businesses, and family offices have arguably become the fastest-growing investment vehicles in the world today. There are at least 3,000 single family offices in existence globally with at least half of these being established in the last 15 years. Growth will continue as a means to facilitate inter-generational wealth transfer and reduce intra-family disputes, in an environment of ever increasing global regulations and compliance. Growth is also ensured due to the continuance of wealth concentration, the lack of trust by families in large financial institutions, as well as the desire to control the flow of information and performance of the overall wealth. How can establishing a family office assist with the ongoing family

business? The family office’s governance and management structure can deal with the complexities of the family’s wealth transparently, helping the family to avoid future conflicts, at the same time as confidentiality is ensured under the family office structure, as wealth management and other advisory services for the family members are under a single entity owned by the family. The next generation can grow into the role of “wealth owner,” which is key when an entrepreneurial family is converted into a financial family post sale of their business. Last but not least, there should be a better alignment of interest between financial advisers and the family, and with the centralization and professionalization of asset management activities, family offices may be more likely to achieve higher returns, or lower risk, for their investment decisions. In addition, we find that families are looking to centralize other services such as philanthropy, tax and estate planning, family governance, communications, and education to meet the family’s mission and goals. A number of corporate service providers, including Amicorp Group, are servicing both family businesses and family offices in a much more coherent way. The services which should be offered under one roof include financial planning and

investment management services, such as financial situation review, investment objectives, risk profile and overall philosophy of the family, leading to the appropriate asset allocation. Apart from liquid assets, real assets such as holding properties, private jets, and yachts also have to be managed, and budgets managed, with wealth reviews and liquidity requirements addressed. With this in place, succession planning must be addressed. Wealth protection has to be looked at as soon as possible, followed by an analysis of any transfer of assets, specifically regarding the professional guidance regarding wealth transfer to succeeding generations. Furthermore, administrative services, or back-off services, are essential to the smooth running of a family office, whether in the form of general legal issues, payment of invoices and taxes, and arranging tax compliance, invoice payment and review of expenses for authorization, opening of bank accounts, bank statement reconciliation, etc. More importantly, succession planning and continuity planning in relation to any unanticipated disruptions in family leadership must be put in place, and the development and possible implementation of intergenerational estate transfer plans must also be in place. Corporate service providers servicing the family office market are also heavily involved in the family office’s (online) reporting systems and record keeping, consolidated wealth reporting, benchmark analysis, etc., and with ensuring strict compliance with regulations pertaining to investments, assets and business operations, as well as assessment and acquisition of appropriate insurance coverage and ongoing maintenance of the same. How do families ensure that all the services which have already been mentioned in this article are available to them? They set up a family office which best represents the needs of their family, including helping with family business succession. Numerous companies are around to assist with this, including private banks, private wealth divisions of large brokerage firms, registered investment advisors, accounting firms, private client law firms and consultants. However, with the increase in AML regulations, servicing complex structures has become more difficult, and law firms and banks, amongst others, are refraining from providing these services as it is not their core business. Setting up a fully-fledged single family office is expensive, and smaller to mid-

sized families cannot absorb the increasing cost of AML and administration and are consolidating with others or closing down. Today the family first needs to consider the type of family office it will create or participate in, whether it is a Single Family Office, a Multi Family Office, or a Virtual/Coordinating Family Office, and which services they can comfortably outsource. Enough has been written about the first two, but we will take the opportunity to elaborate a bit further on the virtual/coordinating family office. Here, most or all activities are outsourced, such as gaining access to people, products and services when needed. A much lower headcount is, therefore, possible, who handle day-to-day operations and coordinate outside advisors and outsourced services. Often they are a senior family member, the family business chief financial officer or an external trusted professional, such as a CPA or attorney. Many private banks and private wealth divisions of large brokerage firms have set up specialized departments to provide these entities with full service around investing, along with external specialty advice in wealth transfer, succession planning, philanthropy, family education and family governance. However, even with this model, a number of key services are usually kept in-house, ensuring a higher level of confidentiality and privacy, the consolidated management of family wealth, greater and more direct family control over its wealth, assurance of optimal goal agreement, along with the avoidance of conflicts of interest with external providers. Given these considerations, it is crucial to obtain the right balance and to identify those services best suited for management in-house. Amicorp Group, a global corporate service provider, has been serving families and their businesses for decades, but last year we created a dedicated unit, Global Family Office Services, to deliver all the required services under one roof with one global coordinator per family. We have always provided a broad range of estate and succession planning solutions allowing families to transition their wealth from one generation to the next. We have also benefitted in that corporate service providers and trustees are seen as objective by families, in contrast to wealth managers. Trustees are also important in the selection and de-selection of asset managers.


INSIDE THE WORLD OF HIGH-END MATCHMAKING BERKELEY INTERNATIONAL The phrase ‘money can’t buy happiness’ is one which most of us are familiar with and would most likely agree with, to a certain extent. Sure it can provide the glamorous holidays and seats at the best tables in town, but matters of the heart are usually in need of a more delicate hand. This issue we delve into the exclusive world of high-end matchmaking with Berkeley International and talk to its founder Mairead Molloy. We want to know what happens when you stop swiping through online profiles and instead send someone else out on the mission to find you love. FO Magazine: If you could sum up the type of clients you have, how would you describe them? Mairead Molloy: One of the biggest misconceptions with high-end matchmaking is that there’s a ‘type’ of client. Just like other dating services, there’s a wide range of people who come through our doors. Yes, off course our clients tend to have large disposable incomes, with very high standards and they absolutely


expect a service that reflects this – but they’re all from different walks of life, cultures, professional industries, social circles. If I really had to break it down into a type, I’d say they’re focused and certain about what they want. You have to take your dating and love life quite seriously to invest in it to this extent. Love is as important as business to these people. FO Magazine: Are people wary of using a matchmaker? Ironically it’s a much older medium than online dating, but it still seems to have a certain stigma and mystery to it. Mairead Molloy: No, not really. Once you reach a certain level of financial success, you quickly get used to real, as opposed to online, people doing things for you. It’s no different to hiring a business coach, chauffeur or home chef. FO Magazine: So how is this type of dating different to just meeting someone in a bar and seeing how it goes?

Mairead Molloy: Time and also discretion. In a lot of cases, our clients just don’t have the time to meet multiple people in bars and wait until date five to work out if they’re truly compatible. They’ve often been through this and want to hit the ground running, and with matchmaking, you know more about the intentions of your match from the start. Also, when you have a team of people working across the globe to help you find something you’re struggling with, it does feel really supportive. FO Magazine: What about work-love balance, we’re assuming these are people with busy lives? Mairead Molloy: So it depends, there are some extremely busy people with multiple commitments, sometimes in multiple cities or countries, but you have to get into the right mindset about the love your looking for. This is a highly personal service, so if we see that dates are always being cancelled, rearranged or even scheduled months apart, we can sit down with a client remind them about the importance of this area of their life. Good matchmaking is also about promoting good communication between people, and we ask that, where possible, dating be placed on an equal footing with whatever else is happening in their life. FOE Magazine: What does this mean? Mairead Molloy: It means that if you have a date, you schedule it in and stick to it like you would any other meeting. It’s not a luxury or an option, it’s your life, and it shouldn’t continuously play second fiddle.

Mairead Molloy: They’re demanding yes, but that’s not a bad thing. Like I said, we all expect a standard of service wherever we go, and there’s nothing wrong with that. People who are looking for perfection usually have other challenges that we need to work through first, and we have a team of people in place to help with this. Any good matchmaking service will come with coaches, therapists, stylists and grooming experts. While all of this can be provided, we never forget, or let clients forget, that finding love is far more important than finding perfection. FO Magazine: What’s the biggest success you’ve had? Mairead Molloy: There are the obvious ones like marriages, everyone involved gets very excited when this happens. Personally, though, it has to be a client I worked with a couple of years ago. His first words to my team were something like “I just need a woman to love, she doesn’t have to love me back, I’m just tired of being alone.” He’d such bad previous experiences that he didn’t honestly think a proper relationship was possible. He ended up meeting a woman who absolutely adores him, who actually has a higher net worth and is worlds away from all the previous people he’s dated. Finding love for wealthy people that transcends questions such as “what do you do?” or “what do you have?” is really rewarding.

FO Magazine: What’s the most important attribute to have when being matched? Mairead Molloy: Patience and probably openness. Like with any service you’re paying for a level of expertise, so handing the reigns over, following advice and being patient is the most useful. FO Magazine: But surely the majority of clients are people used to being in control, is this realistic? Mairead Molloy: What matters more than whether it’s realistic or not is whether it’s possible, and most of the time it is. FO The people who seek out this kind of matchmaking must be more demanding than most, are they looking for perfection?

Berkeley International founder Mairead Molloy


LAMBORGHINI EGOISTA THIS FUTURISTIC SINGLE-SEATER IS THE ONLY ONE OF ITS KIND The prestigious collection in the Lamborghini Museum is now the home of another automotive gem - the Lamborghini Egoista, the supercar developed by Walter De Silva, Head of Volkswagen Group Design, as a tribute to the House of The Raging Bull’s 50th anniversary, which was celebrated last year. This futuristic single-seater is the


only one of its kind in the world. Powered by a 5.2-liter V10 engine that churns out 600 horsepower, it takes the attributes that are in the DNA of every Lamborghini to the next, extreme level. The look is sharply distinguished by a muscular structure with alternating open and solid areas, and the profile suggests the

stylized silhouette of a bull about to charge - the iconic hallmark of the Lamborghini logo. The car’s aeronautical flair can clearly be seen in the headlight system, The aeronautical inspiration is also evident in the body made of lightweight materials (carbon fiber and aluminum) with stealth capabilities, in the anti-glare

windows with an orange hue, in the cockpit conceived as a removable appendage which allows the driver to be insulated and protected from external elements, and in the head-up display. Because of this latter feature, in order to leave the vehicle, the driver must remove the steering wheel and leave it on the dashboard, open the dome

by actuating an electronic control and climb out of the cockpit with a specific series of movements, as required in fighter jet aircrafts. Described by Walter De Silva as the embodiment of pure emotion and extreme hedonism, the Egoista was unveiled on May 11, 2013 before an audience of more than one thousand invited guests at the Gala Dinner that brought

the 50th Anniversary Grand Tour to a close. Exactly one year after it was introduced, the Lamborghini Egoista has returned to its home in Sant’Agata Bolognese. It will now be permanently displayed at Lamborghini headquarters - at first in the showroom, and then in the Museum.



Koh Samui is the third largest island in Thailand after Phuket and Koh Chang. Gorgeous pearl white sandy beaches, lush tropical rainforests and magnificent waterfalls can be found at some of the island’s famed attractions. With so many breathtaking sights, it’s no wonder Koh Samui is fast becoming one of Thailand’s most popular destinations. Koh Samui has continued to show strong growth in travel and tourism, and the market has demonstrated great resilience over the past few years despite a relatively flat global market. Thirty years ago, the island only had dirt roads, with very little infrastructure. It wasn’t until the late 1980s that things began to change. Today, the island boasts a slew of modern developments, including an international airport, several high-quality hospitals, a top golf course, a wide variety of restaurants and hotels, and a new luxury shopping mall. Aside from being known for its abundant unspoilt nature, the island is also famous for its ultraluxurious accommodation options. Just over a decade ago, Koh Samui was better known for its cheap beach-shack lodgings - hugely popular with backpackers. It was only after Four Seasons unveiled a


high-end villa resort on the island in 2007 that changed everything. The Four Seasons Resort was the first property on the island with access to a private beach, and each of its hillside villas had its own infinity pool. Following its launch, a swathe of high-end hotels opened too, including Le Méridien, Banyan Tree, the W Retreat and Conrad Koh Samui which have changed the face of the island. Samui now attracts the top-end brands – but because you can’t fly long haul direct, it has a small island feel. With the steady increase in tourist arrivals, demand for rentals of villas and apartments, too, have been increasing, which in turn has made Koh Samui very popular among investors, especially those who seek yields and also a holiday home, such as Samujana. Samujana Located on the north east coastline, Samujana is a multiple award-winning luxury lifestyle villa, comprising 27 individually owned residences ranging from 3 bedrooms to 8 bedrooms. All villas were designed by Gary Fell of GFAB Architects and were developed by each individual villa owner. The villas and estate are managed and operated by Samujana Co. Ltd. which is owned by the villa owners, with the main focus on protecting the owners’ investments. Although

a secret hideaway, Samujana is conveniently located near Koh Samui International Airport (USM), offering direct flights from Hong Kong, Singapore, Kuala Lumpur, as well as Bangkok, Phuket & Chiang Mai. Samujana stands proudly on a hillside overlooking a coral cove with private beach access and surrounded by acres of lush landscape. Out of the 27 villas, ten are now for sale, and all are available for exclusive holiday rental Why invest in Koh Samui? Statistics show that investors who have purchased a condominium or villa in Koh Samui have been enjoying good returns on their investment – between eight to 10 percent per year. For example, the Samujana rental business has grown year-on-year, and are forecasting continued growth in the coming years. The values of properties have been increasing – between 15 & 20% per annum. And with the government’s plans to further improve the island’s infrastructure, the value of properties is set to rise in the near future. Samui is just a 45-minute flight from Bangkok and Phuket, two hours direct from both Singapore and Kuala Lumpur, and three hours from Hong Kong. There are five airlines that operate direct flights. In addition, Samui is

now accessible by private jet and helicopter, with additional private airport facilities currently under construction. Buying Guide As with most Asian countries, its very difficult for a foreigner to own a freehold property in Thailand. A leasehold agreement is, therefore, the most common and is effectively a fixed term lease of the villa from the Thai company which owns the land. Leaseholds in Thailand are for a period of 30 years but can be renewed for a maximum of two additional lease periods. A foreigner, however, is entitled to purchase a freehold unit in his/ her own name in a condominium project. This is made possible under the Condominium Act. Only developers who have obtained a Condominium License are allowed to sell freehold units to foreigners. Eligible foreigners include those with residence permits, those who were granted permission to enter Thailand under the Investment Promotion Act, foreign juristic persons with investment promotion

certificates, and foreign individuals or juristic persons remitting foreign currency into Thailand for payment for the condominium units. For foreigners who do not hold a permanent resident certificate, they are required to transfer 100 percent of the amount of the purchase price from an overseas source into Thailand. Property hotspot Samujana is perfectly positioned in Choengmon overlooking the “platinum mile” on the north-east coast of Samui. The Chaweng/ Choengmon area is also where all the island’s best shopping, restaurants and nightlife can be found. The large, lavish villas range from three to eight bedrooms and inside all provide well laid out accommodation, including air-conditioned bedrooms, ensuite bathrooms, fully equipped kitchens, reception rooms with multi-media and international satellite channels, sound systems, gas BBQ grills, infinity edge private pools, sun loungers and allocated parking. Many villas also include Jacuzzis, private gyms, state-of-

the-art cinemas, pool tables, games rooms, table tennis and private spas. Samujana has been designed to cater for multi generational living, including families with young children. Set within secure well-tended landscaped gardens and walkways, is an all-weather floodlit tennis court including complimentary rackets and balls, direct beach access and uniformed 24-hour security. Home owners also benefit from high-speed wireless Internet access and state-of-the-art backup generators. The design concept behind the villas at Samujana is based on connecting the natural landscape to highlight the sleek architectural design. Every villa incorporates natural elements such as rocky outcrops and mature trees into the contemporary luxury lifestyle. Living areas are open, naturally ventilated (covered) terraces have been carefully oriented to maximise views and lead directly to infinity edge swimming pools. Villas’ roofs feature garden planters, reflecting pools and natural rocks.



By: Nancy Curtin, Chief Investment Officer

After years of sluggish growth, recent economic data shows a decisive improvement, with the promise of expansionary fiscal policy providing a further spur to growth. However, political risk remains close to fever pitch. Can stronger economic data withstand political risk?

detrimental to his growth ambitions, and for global growth overall.

Economics are looking up Moribund no more - The outlook for global growth has improved recently, with inflation also firming. Data have improved in Europe, Japan, the US and the main emerging markets. Better growth and higher inflation are supportive of equity investments.

European elections While European politics have remained relatively sedate until now; key European elections will prove to be a litmus test for EU stability. We are most worried about The Netherlands and France where challenger candidates are clearly anti-EU.

Fiscal fillip After years of austerity, policymakers are turning to fiscal policy to stimulate growth, notably in the US. If employed successfully, this may elongate the recovery cycle and boost GDP growth. We think fiscal policy is likely to become a global phenomenon and begin to take the baton from monetary stimulus.

Volatility ahead Given the risks outlined above, we believe that both market and currency volatility will remain a feature. However, corrections or pull-backs can also provide opportunities to add to shares which remain attractive on fundamental grounds.

Earnings at last Overall, corporates need above average GDP growth (greater than 2.5%) to deliver earnings growth. Historically, corporate earnings have driven share prices. Better growth should allow earnings and share prices to increase.

Conclusion The recovery in global growth is widespread, with better data across a number of economies. However, political risk remains high and the outcomes of events difficult to predict.

Political risks are heightened Trump - President Trump’s bellicose and unpredictable style of governing has risks. For the moment, investors are giving him the benefit of the doubt. However using his political capital on controversial policies may hamstring his ability to achieve his economic aims. Trade wars and protectionism The protectionist rhetoric Trump espoused on the campaign trail remains a concern. Any form of a trade war, as opposed to better trade alignment, would be


Brexit - While Theresa May has announced her intention to trigger Article 50 in March, businesses still have little information on which to base their strategic decisions on spending and investment.

Using our multi-asset framework, we remain broadly diversified across asset classes, geographies, and securities. We are seeking to exploit the better outlook for economic growth and hence earnings growth through globally diversified equities, but balancing this with volatility reducing assets such as investment grade bonds and alternatives in case sentiment deteriorates.

THE MEANDERING JOURNEY OF AN ALCHEMIST Change and all its ramifications, an inevitable feature of life yet indeed for the wealthiest of families it can prove to be a challenge, sometimes causing downfall and losses; financial, emotional and otherwise, few would dare admit. Loss has sadly featured quite heavily in my personal family life beginning with the tragic death of my father in my late teens, thus life has determined that I must become an expert on the alchemist’s journey. Money may come and go, human life is fragile, and circumstances can change in an instant this we know so amidst all this uncertainty we find ourselves seeking roots that ground us, strengthen us, fortifying us for ever more challenges ahead. It is in this way that I discovered the Atlantic Ocean, a wide beautiful expanse of openness as mile upon mile of pure wild nature opened out before me, permitting me to see deeper within myself as I confronted my fears and pushed outside my comfort zone. I truly believe in the nurturing and healing power of the sea so whilst fear was something I entertained on occasion, manifested in sea sickness, I also felt a deep and connected knowingness that I was being supported. The sea is a place I return to time and again to release toxic energies and reconnect with my truth. We are all capable of so much more than we realise, evolution is showing us that the resilience of the human spirit is infinite and boundless. Multiple opportunities exist nowadays for adventure and test on a global scale. (see Atlantic Rowing) A personal challenge is useful if it addresses a childhood fear and/or supports a lifetime dream, as mine did. Comparison with others is not advised as we each have our own barometer of fear and personal limits. At different times in our lives, we may choose differing challenges to suit our situation. My first instilled memory of feeling deep fear along with an awareness of my own immortality began as I was dangling my legs out of a plane door at 3500 feet


Sharon Foulston

FAB Forums - Adventurer Global Change Agent ready to take a parachute jump with my University mates. I have pursued various physical achievement goals along the way however they all tend to have a common theme in that they occur outdoors in nature and often amongst some of the most wild and beautiful natural landscapes which can be found on Planet Earth, e.g. Himalayas, Atlantic Ocean, Indian Ocean, Alps. The feelings experienced of awe, self-love and an interconnectedness are almost indescribable when one immerses oneself in these surroundings. I shall never forget the luminosity of the stars on route up to Everest Base Camp and mid-

Atlantic Ocean or the gorgeous deep blue colour of the sea as it stretched for miles beneath us. Having had the privilege of experiencing these majestic surroundings only serves to demonstrate to me just how small and insignificant some of our daily problems and worries can be and alters perspective entirely. It also enables me to reach inside myself to discover the inner strength and courage which lies dormant waiting to be unleashed so that my goal can be attained. Where does money sit within all this? Well, I believe it is the means by which one can attain these goals, and for me, this is its rightful place. Our soul’s journey dictates our bank balance with selfworth being the ultimate prize. Change on a personal level can be so difficult because we employ obstructive behaviours to avoid change as it feels necessary for our self-protection, quite naturally in fact as humans we are programmed for survival and often change can threaten this on a physiological level. Thus in overcoming immunity to change it is incredibly helpful to put the body into action this takes the desire for change away from the head and a thinking process down to a visceral feeling level which is where the obstruction really sits. Often deep previously unacknowledged emotions lie within our psyche producing feelings of intense fear in the face of change. These negative emotions work to hinder our growth. This is all commonly referred to as self-sabotage or self-defeating behaviours. See Kegan & Lahey Immunity to Change Harvard Press. The beauty of these physical challenges is that they put the body into action so bypassing the psychological barriers to change. Difficult feelings of grief (in my case) or guilt and blame can be dispelled through physical exertion and the encroachment of these self-protection barriers, thus leaving us with deep-seated feelings of openness, inner strength and self-belief. Superficially represented by conversion of fear into excitement. It often helps if you can permit yourself the use of imaginary angels, supporting you and guiding you to your mountain peak or safe harbour. To come full circle now, as indeed all lives tend to, is to emphasise the key in dealing with loss of any kind be it material, emotional or physical is to do nothing. Take one’s time, become a hermit, grieve the loss fully and only once serenity and clarity prevails should one then take action. Life circumstances may change, and events occur which we have no control over, yet we always have control over our own thoughts where the journey of the alchemist begins.



PHANTOM VII Written by Jeff Firmin. Global Sourcing of Rolls-Royce,

Bentley and other Motor Cars of Distinction. On January 1, 2003, the first example of the seventh generation Rolls-Royce Phantom Saloon was presented to its privileged new owner. The renaissance had begun. After a number of years in somewhat of an automotive wilderness, new ownership and a new model had reinvigorated the marque and quickly established Rolls-Royce Motor Cars as the maker of the ‘Best Car in the World’ once again. Following, four and five years later respectively, two gloriously exquisite variants were introduced, in Drophead and Coupé guises. Both immediately gaining recognition as ultimate choices for Continental Grand Touring. Additional models, Ghost, Wraith and Dawn, were launched in subsequent years, perfectly delivering traditional marque values in a thoroughly modern way. But, from its launch, Phantom was and has remained the figurehead model. It became the car of choice for those having achieved at the highest level, with the Coupé and Drophead variants proving exceptionally exclusive. However, as the fictional character, Lazurus Long stated; ‘Great is the art of beginning, but greater is the art of ending.’ By 2016 Phantom had served for over 13 years, dominating it’s market so convincingly that when asked, it is difficult to conjure up a serious competitor. But it was time for Phantom VII to lay down the reigns. A befitting finale was in order and so Torsten MüllerÖtvös, Chief Executive Officer, Rolls-Royce Motor Cars, announced; “As we begin to write a bold new chapter in Rolls-Royce history, I am delighted to present a Bespoke Collection that so elegantly celebrates two of the world’s rarest and most celebrated luxury


goods; Phantom Drophead Coupé and Phantom Coupé. Phantom Zenith Collection motor cars speak of the marque’s unrelenting commitment to setting and advancing the standard by which all other luxury goods are judged.” A stunning Bespoke Collection, the Phantom Zenith Collection, focussed on the divine Coupè and Drophead models, served to celebrate these two extraordinary motor cars with a suite of exquisitely executed bespoke pieces, designed to amplify the beauty and luxury of two of the rarest and best-loved luxury goods in the world. This limited run of just 50 examples was soon sold out. So now we have now settled into 2017, and the last Phantom VII has rolled off the production line at Goodwood, it is time to reflect on what is one of the most significant models in the marque’s history. How will Phantom VII be remembered? Indeed, will it be remembered? As with anything of genuine substance, time proves true value. In 20, 30, 40 years time will anyone sentimentalise over Phantom VII in the same way that many of its predecessors are so cherished today? The world’s greatest luxury motoring brand, or maybe just simply the world’s greatest luxury brand, has brought us many fabulous models over the years, several becoming truly iconic. Can Phantom VII compare? To begin with, there was, of course, the Silver Ghost, one of the most recognisable cars in the world, the car that became the foundation stone of the legend when it was named the ‘Best Car in the World’ by Autocar

magazine in 1907. The early generations Phantoms, of the mid-1920s and 30s, oozed high society ‘Gatsbylike’ grandeur more than any other motor car on the road at the time. Nothing else looked more classically beautiful. Other models of significance include the Silver Cloud, quite possibly the most definitive RollsRoyce design with it’s beautifully regal, flowing lines proving a resounding success from the mid-1950s through to the late 1960s. More recently, from the mid-1970s, the Corniche Convertible carried grace and panache from every angle, even if, on occasion, it’s custodians didn’t quite exhibit such levels; a reflection of the times, when the exhibition of your wealth was all the rage. Given models of such significance, one has to ponder what destiny awaits the seventh generation Phantom. Will it join the few, glorious, swooned-over creations that even today, draw the spotlight wherever they appear? Or will Phantom VII join the also-rans, those models that while having provided the owners with the exemplary levels of service expected of a RollsRoyce, haven’t quite managed to ingrain themselves in the memories and hearts of any but the truest of enthusiasts. Such models include the Twenty, Silver Dawn, Silver Spirit and the Silver Seraph. All are fabulous Rolls-Royce Motor Cars in their own right but just not quite special enough to reach out much beyond their own life cycle.

There was, and still is, nothing like it. Secondly, there is its significance in the history of the marque. Phantom will be remembered for swiftly returning Rolls-Royce to the throne. The ‘Best Car in the World’, a title it had held since 1904, hadn’t been truly deserved for at least the two decades prior to BMW’s takeover. Many would argue it had been considerably longer. Thirdly, its design returned us to a sense of the Hollywood era when Rolls-Royce motor cars were grand, and so unapologetically so. Phantom has immense, undeniable road presence and styling that delivers the required statement. But it does so in a way that is classy, relatively understated and traditionally British. These three points, whichever path is taken by the automotive sector over the coming decades, will surely establish Phantom as one of those Rolls-Royce motor cars that is looked back upon with considerable admiration and respect. Although an incredibly rare sight on our roads, particularly in Coupe form which will likely become the Bentley Continental Fastback of its generation, it will always be recognisable as a Rolls-Royce and maybe that’s the ultimate test. One it passes with flying colours!

So where will Phantom VII sit in our memories? Firstly, and of most significance, is that Phantom VII truly is a phenomenal motor car; in the way it drives, the way it feels and in the way it is built. And because of this, the way it makes you feel. It is a genuine Rolls-Royce for modern times, with the much-used description ‘Land Yacht’ being perfectly appropriate.



Visionary, cutting-edge and pure, the codes of the most wanted super sports cars in the world in the Classic, Casual, Casual Vintage, Pilota Ufficiale and in the brand new Event Suit lines. These different lines are conceived for a man who makes an impression in every situation, showing off a bold outfit, defined by the cuts, the materials and the refined and innovative details.

design to the light and medium blue slim-fit striped cotton shirts. From the polo shirts in geometric micro jacquard fabric to the denim effect wool tie.

Event Suit. Menswear Evolution. This line aims to satisfy masculine needs for the dress codes at social events. From the two-button black blazer with a tailored cut and a comfortable fit in tricot to the total black jeans with gold stitching details, a contrast with an eccentric and impeccable touch. The T-shirts and jersey sweatshirts with inserts that pick up the motif of the “Y”, the design of the cars’ headlights.

Casual Line. Upper Sportswear. Original pairings with a refined taste and a casual DNA. The windproof jacket with geometric cuts is made of water-repellent technical fabric. The prints which reproduce technical drawings from the archive on a series of indigocoloured denim effect pieces, such as sweatshirts, T-shirts and scarves, are dedicated to the Huracán model. The new colour of the special model Huracán Avio, blu grifo (matte blue), dyes the sweatshirts with taped zips in metal grey and the cotton piquet polo shirts. The graphics paired with tire prints and with the 3D effect relief prints for T-shirts and seamless sweatshirts pay tribute to the Aventador.

Classic Line. Exclusive Voyager. Formal and functional for travelling, the collection is characterized by very high quality materials for pieces and accessories made with fine and exclusive yarns, fabrics and leathers. From the breathable and waterproof rockcoloured parka in stretch fabric with visible taping, to the leather jacket with laser-cut inserts. From the sartorially-inspired wool blazer with a micro kilim

Casual Vintage Line The New Heritage. Vintage effect for the polo shirts and sweatshirts with a flock print inspired by the historical Miura and Countach models. The jersey t-shirt is reversible in the colours dark navy-amber gold and rock-white. Double technical fabric for the scuba fabric bomber: externally it has a woollen touch, internally it is in double-knit fabric with a contrasting tire print.


Milan Men’s Fashion Week

Collection for Fall Winter 2017/18 Automobili Lamborghini presents the RTW collection for Fall Winter at the Mandarin Oriental Milan

Collaboration with Riva Private label on show

A preview of the special editions with Hettabretz and Enzo Bonafè.

Pilota Ufficiale Line High Speed. The passion for the world of racing in a collection with audacious profiles and performing hi-tech fabrics. A series of pieces with graphics which again propose the claim “Pilota Ufficiale” and the “Y” - which picks up the design of the headlights of the supersports cars. The “Y” is made with inserts of different fabrics but in the same dominant colours of black, grey, white and amber gold. Debut of the co-branding with Hettabretz. The Bologna-based fashion house Hettabretz and Collezione Automobili Lamborghini together for the first time present a limited edition of three pieces of outerwear for men and for women, each in thirty numbered pieces. This co-branding is inspired by the common DNA of the two Italian excellences with the objective of creating unique pieces. trength and the elegance of the two brands. Alongside the classics of the collection in walnut from areas of reforestation, there are some of the bestsellers of Riva 1920 reinterpreted with the new Volcano black finish, an artisanal process of carbonizing cedar that is inspired by ancient Japanese techniques. The central feature of the space is a table in Kauri, an ancient wood from New Zealand dated as 50,000 years old.



by Gianni Mattioli

Investing in Biotechnology companies can be a great opportunity. Here are some considerations and rules for making a wise investment. A) THE UNIVERSE OF THE BIOTECHNOLOGY COMPANIES IS LARGE. There are 166 biotechnology companies currently listed on the Nasdaq, of a total of the approximately 3,000. Because of the complexity of this type of securities, it is essential, before investing, to understand the functioning of these companies and the process leading to the approval of a new drug and its marketing. A biotechnology company produces its medicines on a biological basis, using living organisms, such as bacteria or enzymes. On the contrary, pharmaceutical companies produce their medicines with chemicalbased drugs. Biotechnology has broader applications compared to traditional pharmacology and benefits from a term of 12 years for their patients compared to five years for pharmaceutical companies. B) THE PROCESS FOR THE APPROVAL OF A DRUG The institution responsible for the approval of a new drug, is the Food and Drug Administration, FDA. The institution has six analysis centers in the US. The process leading to the approval of a new drug is divided into 3 phases: PRE-CLINICAL PHASE Tests of tolerability and toxicity on animals

PHASE 2 It consists of testing the drug on a limited number of patients, from 100 to 300, suffering from the disease to be cured. In this stage, the effectiveness of the drug, the tolerability, the optimal dosage and the possible side effects are tested. PHASE 3 In this stage, the number of patients is expanded, up to 3,000, distributed in different locations, divided by age, gender and ethnicity. Here the therapeutic effect and the risk/benefit ratio of the drug are definitely tested. C) HOW TO SELECT A BIOTECHNOLOGY COMPANY FOR INVESTMENT In analyzing a bio company for investment, should be prioritized: 1 - companies that are studying drugs that treat highrisk or highly disabling diseases such as: - Tumors, in particular of the liver, lungs, pancreas - Alzheimer’s disease - Parkinson’s disease - Rare forms of muscular dystrophies 2- companies that are experimenting many drugs, called Pipeline. The greater the number of drugs, the greater the odds of success. Figure 1 and 2 show an example of a company’s pipeline: -Clovis Oncology: drugs to cure ovarian tumours.

PHASE 1 It consists of testing the drug on a limited number of healthy volunteers, patients, in order to verify the safety and tolerability of the drug with the given dose.


29, 2016, l the FDA declared insufficient the results showed in Phase 2 related to its antidepressant ALKS 5461 and required further documentation.The stock lost 50% of its value and only recovered later, doubling the value in the course of 2016.

Johnson & Johnson has brought to market 14 new products between 2009 and 2014. The company has planned, as shown in Figure 2, to bring to market ten new products by 2019, each with expected sales of more than $ 1 billion. 3 - give preference to companies that have operational and financial partnerships with major companies. As an example, we cite the company Geron which is studying, Phase 2, the product Imetelstat, an antitumor. Geron is a small company capitalizing about $ 350 million; nevertheless, it has signed an agreement for the worldwide distribution of Imetelstat, once approved, with Janssen Pharmaceuticals, which is owned by the giant Johnson & Johnson. D) THE RIGHT TIMING FOR INVESTMENT The right moments to invest in biotechnology are basically four: 1) when the drug has passed the Phase 3.Sales and profits will increase significantly over time. It was the case, among others, Array Biopharma, Figure 3, On September 26, 2016, Array announced that their drug against skin cancers had successfully passed Phase 3.In followed days the stock doubled its value. 2) when the drug has passed Phase 2B: the odds that after this it will also pass the Phase 3 are generally high. Phase 3 requires on average three years. 3) when the FDA rejects the drug on Phase 2B or Phase 3 for reasons of minor importance as the dosage of the drug, or an insufficient number of patients or others. In these cases, the company has the opportunity to correct these details and prepare a new test for the approval. However when the FDA answer negatively a sharp sell-off of the title occurs immediately, to recover only later some of its value. As an example, we can show the trend of Alkermes, figure below. On January

E) WHAT TO AVOID: - society ‘that only drugs embryo experimentation in Phase 1 and Phase 2A - companies that have only one drug under trial - companies that are investigating drugs of little scientific relevance and low potential diffusion - companies that have a history of previous trials with negative results - companies that have an insufficient financial position to continue the trials until the final stage -IPO: companies that have gone public recently and do not have enough historical data On 26 September 2016, the FDA sent the company a Complete Response Letter, CRL, which rejected the request of the company’ to approve the drug Remoxy. Pain Therapeutics is studying only this drug and the FDA refusal caused the collapse of the stock to a few cents. CONCLUSIONS As we have seen, an investment in a biotechnology company can give excellent results. But it is necessary an in-depth analysis, case by case, regarding the status of the trial and if the company complies with the requirements of the Food and Drug Administration. A successful new drug can be a revolution both for the company and the market, as it happened with Apple’s iPhone. The extraordinary advances in genetics and the study of DNA have opened a fascinating and very promising scenario for the biotechnology companies.



an alternative planning structure for Russian HNWIs?

The era of global tax transparency requires a reevaluation of the available wealth planning options. Control, asset protection, reporting and costs are the main drivers of Russian private clients. In this article, an investment portfolio in Switzerland indirectly held by a trust on behalf of the wealth owner and the same investment portfolio directly held by a wealth assurance are compared to what degree they relate to these drivers. Guidance is also given in finding the right structure, jurisdiction and providers. Wealth assurance; how does it work? Wealth assurance is on the short list of planning structures of most wealth planners worldwide, but it is relatively new for Russian investors. Although wealth assurance has nothing to do with a classic life insurance, it is issued by certain life insurance companies. The client contributes the eligible assets that he or she wants to protect as a one-off premium payment, in cash or in kind, to a bespoke investment fund created by the insurance company that had opened a dedicated account at a custodian bank for the underlying assets of that particular wealth assurance. Usually, the custodian bank and the appointed investment manager are the same that held the investment portfolio before the premium transfer. This internal investment fund is exclusively linked to the client’s wealth assurance. The value of the client’s wealth assurance policy is equal at all times to that of the underlying internal investment fund. The insurance company has now become the Economic Beneficial Owner (EBO) of the underlying assets. In return for the premium payment, the client has a “claim” on the insurance company for the value of the underlying investment fund. He can withdraw and/ or surrender at any time during his lifetime. Control During the term of the contract, the client/policyholder has full control over the wealth assurance but not over the assets underlying the wealth assurance. He


Toon Meyer Gatsby & White SA can surrender at any time, appoint and revoke the beneficiaries by a simple registered letter, adapt the investment strategy, and pledge the policy for a loan. The client has no control over the distributions from a correctly administered irrevocable, full discretionary trust. Whenever this is not the case, the trust can be challenged and declared as a sham trust by courts both in Russia and abroad. Asset protection Once the Common Reporting Standard (CRS) will be effective, all wealth planning structures, including trusts and wealth assurance, will be reported. Only the best asset and investor protection regimes will then be good enough to protect the Russian clients against unjustified claims from (ex) spouses, greedy family members, (former) business partners, competitors, aggressive officials, raiders and others. The asset and investors’ protection laws and regulations in several jurisdictions of wealth assurance providers

offer the strongest protection available against creditors’ claims and actions, against foreign public bodies’ claims and actions and against bankruptcy of the insurance company and/or the custodian bank. It is the insurance company that is the only legal and beneficial owner of the underlying assets. When the counter party can prove that there was no proper segregation of the assets in the trust and that the client continued to exercise control over these assets, the trust can be challenged successfully and the assets be seized. Reporting Russian residents are permitted to subscribe to a wealth assurance of a foreign provider abroad. When that wealth assurance meets the criteria to qualify as an insurance contract pursuant to Russian law and requirements, there are no self-reporting obligations for the client/policyholder in his tax declaration. In contrast, the income in the investment portfolio held indirectly by the trust needs to be reported on the client’s annual income tax return. Costs No wealth assurance is identical to a trust; it is, therefore, difficult to compare costs. At first glance, wealth assurances may look more expensive than trusts. But the income generated by the investment portfolio under the trust is to be taxed every year at 13 percent while that same income is accumulated without income tax in the wealth assurance. Swiss stamp duty (0.15% or 0.30%) is due on every transaction in an investment portfolio under the trust while these transactions are exempt of Swiss stamp duty in a wealth assurance. In the end, it will be the client’s advisor that will decide which structure is the most suitable in a particular case. Best of both worlds Wealth assurance is clearly a superior asset protection structure with a lot of flexibility, but the trust remains a far better management vehicle. When the stakes are high, i.e. when physical integrity, asset protection, peace of mind, estate planning are extremely important, the trust can act

both as the policyholder and as the beneficiary of the wealth assurance. In some cases, the client is the policyholder, but the trust has been given limited or general powers of attorney to represent the client in case of his temporary incapacity or after his death. In other cases, the trust is appointed as beneficiary from the beginning. Bottom line, there are many options to consider once the client’s advisor is also familiar with wealth assurance as a planning structure. Independent intermediary, There are three ways to mediate a wealth assurance. One; the client’s advisor approaches an insurance company directly. He is probably not qualified to do that, and it is not obvious that he will identify the most suitable provider in the appropriate jurisdiction and work out the best possible deal for the client. Two; the client’s advisor relies on an in-house broker of a banking group. There might be a conflict of interest since the in-house broker’s allegiance is with the banking group and not with the client. Three; the client’s advisor calls upon an independent intermediary, well introduced and highly experienced in the matter. Such an intermediary is not married with one insurance company in one jurisdiction. Instead, it offers the client a choice out of several companies in several jurisdictions depending on the characteristics and needs of each individual case. Furthermore, this intermediary should have a proven track record of conducting periodic sustainability and appropriateness reviews to keep the wealth assurance compliant and effective. Conclusion Wealth assurance is neither the only alternative planning solution nor always the best for Russian HNWIs. Sometimes, the optimal result might be achieved by combining a trust and a wealth assurance, and sometimes only by the one or the other. However, ensuring that the best planning result will be achieved, wealth assurance should be considered. Toon Meyer Director Business Development Gatsby & White SA,



CATHERINE WALKER & CO - HIGH END COUTURIER Founded in 1977 by husband and wife design partnership, Catherine Walker and Said Cyrus, the company has set unique standards in luxury bespoke clothing for women. With no catwalk shows and no advertising, this discrete House has earned its reputation through its celebrated clients such as the Princess of Wales and the Duchess of Cambridge. In a tribute to the brand’s history, the SS17 and AW17 collections will feature several reinterpretations of the most iconic pieces seen over the past four decades. From its beginning the company has had a reputation for exquisite and intricately worked evening gowns,


and since the early 80’s Said Cyrus has employed Savile Row tailors to hand make their designs that fuse sharply sculpted masculine shoulder lines to a softer feminine silhouette below. The SS17 reworks early 80’s little tweed jackets, 90’s bead-encrusted bodices overflowing silk, passementerie, exquisite crepe de chine prints and of course the company’s signature coatdress.

their company. However, the duo decided to do the reverse of what was expected, and they returned all the benefits of the company’s success back to their clients. By limiting the company’s size, it allowed them to give each client the love and intimacy on which the company was built. They have often said, “The last thing we wanted was a money making machine with no soul.”

It is important to note that at an early stage in the company’s history Walker and Cyrus faced a decision about the company’s future, with tempting offers from North America and the Far East, and some substantial offers to sell

As a result of this small-is-beautiful philosophy, to which Cyrus still adheres today, the company owns a seven studio atelier opposite their showroom in the heart of Chelsea, where a tightknit group of thirty lifetime craftsmen and

women lovingly hand make pieces of individual luxury for each individual client, where “the client is the star, not the dress”, says Cyrus. Nothing is made outside these Chelsea studios. Since Catherine Walker’s death in 2010, Said Cyrus has forged a new chapter in the history of the brand. In this 40th anniversary year it is fitting that the company can look back through Kensington Palace’s major exhibition, Diana: Her Fashion Story, (where over half the display is from Catherine Walker) and also look forward to new clients such as the Duchess of Cambridge. Until recently, its made to measure designs were only available by private consultation in its Chelsea atelier. However, in response to the growing practice of buying online, an inventive new service called Catherine Walker e-couture now means that garments can be ordered from anywhere in the world, provided clients follow prescribed steps, and secure the services of an approved local tailor or dress-maker to ensure the precision fit for which the House is renowned. This service has now been supplied throughout the USA, the Middle East, Central Asia, and even the UK! The Catherine Walker & Co showroom is located at 65 Sydney Street, Chelsea, London, SW3 6PX.



Build-to-Suit denotes an investment strategy which is particularly appealing to institutional investors in Dubai today, primarily because it has – if well implemented and transacted – the potential to combine highly attractive rental returns on real estate assets while effectively confining the involved risks.Build-to-Suit by definition characterizes a way of leasing property, in which the landowner builds the property to the specifications of the tenant, followed by a mid- to long-term lease. The counterparts (tenants) are usually large, international corporations operating in the sectors of hospitality, education, transport (airlines), retail and manufacturing. Such arrangement is typically chosen when the tenant elects to occupy a building of a certain type, however, does not wish to own the land and building. Win-Win for Investor and Tenant The tenant`s rationale behind the deal is that housing costs account for at least 40% of an employee`s total remuneration package in Dubai today. With the elevated volatility witnessed in Dubai and rents soaring during upward cycles, this either forces employers to considerably increase their accommodation expenditures (and thus total remuneration packages) or else accept highly negative consequences with respect to staff fluctuation and therefore their business. Being a typical outsourcing strategy, the Build-to-Suit concept offers the tenant the tremendous advantage of foreseeable and fixed accommodation costs while at the same time enabling the latter to concentrate on his core business instead of obliging him to deal with matters like property development, facility management and the like. Obviously, the avoidance of tying up financial resources in non-core operations is another key objective for most companies today. The investor`s rewards, on the other hand, are basically twofold: First, the landlord enjoys exceptionally high net rental yields (15% and more) with zero vacancies and rent fluctuations in turn for shielding the tenant of potentially excessive future rent hikes. Furthermore, the lion`s share of investment (construction) needs only be committed once the


Christian Atzert tenancy contract is in place and the future cashflows are assured. Dubai`s Market for Build-to-Suit Property Dubai has just passed the milestone of 100,000 hotel rooms in the emirate, while the Dubai government`s tourism marketing body (DTCM) expects another 34,000 rooms to be added to the inventory by 2018 and to reach a staggering 160,000 units by the time the World Expo kicks off in October 2020 in Dubai. At the same time, there are other economic segments that are similarly as labour intensive as they are thriving – think in terms of transport (airlines), education (universities and schools) and retail – to name but a few. That said, it speaks for itself and a constantly growing demand that the price for staff accommodation has increased by about 130% between 2009 and 2014 and is still on the rise to date. Being „off-market“ by nature and with the absence of non-professional, typically more speculation-oriented small investors, the Build-to-Suit sector, in general, is more supply-/ demand driven.

Critical Factors As with any other property, the land plot`s location and accessibility are major influencing factors, thereby greatly relevant in determining the attractiveness of the Build-to-Suit object and thus pricing of rents and future valuation. Getting all necessary building blocks in place at the right time is of paramount importance for the successful outcome of the venture. Quite obviously, a suitably located building plot to be matched to a trusted and financially sound tenant (to be complemented by appropriate collateral) are the most important elements of this strategy. Equally reputable partners should be chosen for construction and its oversight in order to ensure a handover according to schedule and low running costs thereafter. Conclusion Despite some present economical headwinds caused by low oil prices and a sluggish world economy, the UAE is forecast to pick up the pace considerably, reaching a predicted GDP growth of 4.3 percent in 2020 (Trading Economics). In light of this, there remains little doubt that Dubai`s successful strategy to further strengthen and diversify its economy will fuel ample future demand for staff accommodation in carefully chosen locations. In such a context, the „Build-to-Suit“ element entails

less risk than it might appear at first, owing to the fact that housing requirements typically do not contrast starkly between corporate tenants of a similar size and industry. This, in turn, implies that the property will be lettable and/or liquidable at the end of the contract term with little or no alterations. Furthermore, typical amortisation periods of seven years or less grant ample financial leeway at this point in time for disinvestment or subsequent letting. Without a doubt, the beginning of an economic (rather than property-) cycle marks the sweet spot in timing for such an investment as construction and land prices are still favourable. Meanwhile, a premium on rent is achievable owing to the custom-constructed property as well as the contractually granted shield from future market-rent hikes. While the presented strategy offers considerable attainable returns, the related risks can be effectively contained if the undertaking is well implemented - potentially offering the best of both worlds.

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TURQUOISE Being a three-dimensional object, it is volume, rather than length, that defines a yacht’s size. Hence we refer to a yacht’s value using its price per Gross Tonne or “GT”. We utilise this measurement as estate agents, and property developers may do price per square metre or square foot. So what price should we expect to pay per GT? The cost of building a superyacht in excess of 500GT today may vary from anywhere around €30,000 per GT to over double that figure. This begs the question: why would anyone entertain paying more than double for the same size of a yacht? ‘Quality’ is too simplistic an answer. One would expect something nearing perfection from shipyards at the highest price point in the market. However, the more valuefocused shipyards are constantly striving to enhance their build


processes and improve on quality and finish, often using the same suppliers of engines, generators, exhaust systems, air conditioning, water treatment, coating systems and so on. By combining familiar design formulae, standardising build processes and appropriately specifying materials, build costs may be controlled while still maintaining the demanding standards of quality and finish required by both clients and industry. Benetti’s standardised engine room layout being a classic example. Therefore, an owner with a good build team, including a skilled designer and an experienced project manager should be able to build an attractive, well finished and solidly engineered yacht at the more ‘reasonable’ price points. So where is the additional value at the top end? Many would argue that it’s in the detail. Just close a beautifully finished cabin door on a

By Matt Ruane yacht from a high-end shipyard and feel it hung to the finest tolerance with its impeccably flush hinges and perfectly aligned screws. Note all the chequer plate lining up in a breathtakingly presented engine room or take care to inspect the flawlessly laid teak. At the highest level, clients expect this to represent a build philosophy that extends from their yacht’s over-engineered construction to its meticulously detailed finish. It is this no-compromise approach that delivers the ultimate feeling of owner confidence and satisfies those with a true passion for craftsmanship. Another justification for higherend build costs is freedom of expression for both owner and designer - the ability to push boundaries of technology, design and materials in order to achieve something truly special. As in the automotive industry, in which

budget and competition drive innovation that trickles down from cars like the Mercedes S-Class to an average family saloon, so do the leading shipyards drive innovation in the yacht sector. One of the many areas we could look at to highlight this is the recent use of glass. The Feadship VENUS, for example, features an entire deck surrounded by toughened glass (the three 10x3 metre panels each side). The award-winning Feadship SAVANNAH, with its stunning semisubmerged “Nemo Lounge” or HAMPSHIRE II, again by Feadship, which entices its guests to “float” through its engine room via a spectacular glass conduit. Asked about the inclusion of a breathtaking underwater observation lounge into a recent launch, Pataq Fadi of Nobiskrug Shipyard explained to me the staggering amount of structural analysis and calculation required to satisfy the safety authorities, before they were able to even commence the groundbreaking lamination and fabrication process of the glass structure and integrate it into the build. “Regulatory bodies are slow at implementing changes because their regulations are based on traditional and well-proven methods and experience. These are the guidance for standardized platforms. Innovative shipyards push the boundaries further!” All these examples exceed previously conceived limits of technology and application, above and below the waterline as well as interior spaces. Stepping aboard any of the yachts built on Lurssen’s 85m “platform” in recent years (Kismet, Solandge, Phoenix II, to name but 3) provides a perfect illustration of this marriage

of technology and craftsmanship. All bear totally unique interiors and exteriors while being exquisitely finished throughout. But let us drag ourselves away from pondering the magic possible for those lucky enough to build at one of the world’s finest shipyards, and take a cooler, more commercial view. Which price point is the smarter investment? Our broad view is that buying at a higher cost per GT is a better investment, and here are two reasons why: Resale. The highest quality brands sell themselves. Not only do they retain better value, but they generally attract and retain the best crew, enhancing the overall desirability and condition of the yacht. Bas Nederpelt from Feadship has said: “Resale values of our recent yachts are historically higher than any other brand. There is always demand for a pre-owned Feadship.” Having sold two of the three largest Feadships last year, we agree with Bas! The flight to quality. Looking at the Russian 80m+ market alone from 2011 to 2015, the 2016 Superyacht Intelligence Annual Report tells us that 35% chose to build at Lürssen, 15% at both Feadship and Blohm + Voss and 10% at both Oceanco and Fincantieri. Those that can afford to build in the upper echelons, do. it’s also worth considering the pricing of those builds further downstream when they come to the brokerage market. At CWP we deem it essential not to overvalue: it’s detrimental to owners’ objectives and the market as a whole. We believe value should never be based on a “finger in the air” or “gut feel” judgement. Pricing by length must be disregarded

in favour of GT. Then age, specification, condition and build pedigree all factored in. Naturally, we look at all comparables from the same shipyard, but we also take into account how that shipyard prices and approaches its contracts and what was additional to that contract price (design fees, for example). Were significant changes made to the design during the build process resulting in change order penalties? Most buyers would not wish to pay for additional costs associated with an owner’s change of heart in respect of the original design or specification while in build as they do not normally add tangible value. We remain adamant that a logical, measurable understanding of value by all parties at the outset is essential to efficiently achieve our client’s objectives. This is borne out by looking at CWP’s recent sales successes which reveal a pattern of faster turnaround from listing to sale while achieving closer to asking prices than many larger competitors. Superyacht broker Matt Ruane




Wealthy families have been investing in businesses since the dawn of commerce. Initially, their role was as founders, managers and owners, and as success brought surplus liquidity, many developed private structures, with a strategic allocation across all core asset classes: family offices were born. Private equity has been a well-established part of most asset allocations for decades. As investments are at the upper end of the risk spectrum, it is usually, therefore, a relatively modest proportion of total assets for most families. That risk has been largely mitigated through diversification, principally through fund investments, giving investors exposure to multiple managers and strategies, and a much broader underlying portfolio than most could finance independently. More recently, as super-liquidity events have generated even larger cash windfalls, and in particular as the generational transition has seen younger family leaders assume decision-making responsibilities, more and more families have moved away from the fund strategy to seek direct investment opportunities. Sometimes this reflects firsthand personal experience – individuals may have worked in M&A or private equity. For others the decision is about a cost-benefit assessment: fund investing can be expensive (often with two or more layers of fees) and at a certain level of scale it can become cost-effective to build your own team. This point becomes even more pertinent when linked to a third driver – the desire to be more involved. Fund investing is essentially passive and puts your capital into a blind pool, so there is no direct exposure to deal-making, to the selection of investments, or the operational value creation cycle. By contrast, an entrepreneurial family office sees value in their own industrial experience and network and seeks to leverage this through an in-house direct private equity team. These organisations have become much more sophisticated in the last 20 years, often led by best practice from the US. Initially, families might entrust the deal-making role to an experienced line manager, someone they had known for a long period, typically the leader of a successful operational business unit, but critically not usually a proven private equity manager, putting personal trust ahead of technical training, sometimes to avoid complex


Rupert Bell

Principal Consultant for PER and expensive remuneration structures. The results were often sub-optimal. Lessons have been learned, and the leaders in the market now routinely hire proven investors with first class origination networks and track records. Costs have often risen accordingly, but in many cases, these have been justified by more stable returns. Over the last 3-5 years, we have seen the evolution of a further model, an ambitious hybrid where families act as cornerstone investors for new private equity shops, securing better economic terms, as well as greater influence in sourcing and executing investments. In Germany, some 50+ new teams have set up since 2012, with around two-thirds supported in this way. There is clearly a danger that this phenomenon is a text-book definition of the top of the market and we expect quite a few firms to fold if they cannot close deals as easily as hoped, or when liquidity pressures surge elsewhere in a portfolio, but even if half don’t survive the next downturn, that is still a material impact on the shape of the overall market. What about the competition for talent? Historically, most family offices were not competitive on compensation or assets under management, but this has changed. As specialist headhunters in this niche, we have been

able to bring tier one investors to family office clients precisely because the source of capital is different. So much mainstream private equity is now commoditised in 10-year limited partnership structures; pricing and processes are largely generic, exit pressure remains significant, and in truth, many of the personalities merge into one another. But these newer family offices vehicles look and feel differentiated. Fundraising is a more transparent exercise and many families actually prefer their capital to remain productively deployed rather than seeking an arbitrary liquidity event to trigger carried interest payments, so they can contemplate much longer hold-and-build horizons. Possibly more importantly, an effective family office can deploy their industrial heritage as a relationship winner in the origination stages, for example, ‘We’re not just another faceless fund, we represent a multi-generational industrial owner with a proven record of building value themselves, investors who look and think the same way you do, but can bring fresh capital and ideas to drive your business even further in a partnership of equals.’ This is not just fine words – this approach really works and brings priority access or even exclusive, incremental deal flow, the lifeblood of a successful PE firm. Working with these tactical advantages excites proven dealdoers. Our advice to candidates considering joining family office private equity teams is to focus on two

issues: commitment to the asset class, and governance. Cashflows in private equity are negative for many years, not least because the lemons ripen before the plums, as the old saying goes, and one truly needs to invest across vintages for diversification so this pre-supposes a certain depth of pocket and a willingness to stay the course to reap the benefits. Similarly, in a competitive market, prices are high, and investment decisions need to be backed up by process rigour: scenario analysis, proper due diligence, negotiation and relationship building, and documentation. If an overbearing family principal can bypass these on a whim, this becomes a dangerous career move. The caricature would be for a hired professional to be greeted at his desk by a beaming owner with the news that ‘we’ve bought a football team.’ But get these two issues right, and you have a real edge in the market and for the individual, the chance to build something distinctive. Private equity has become a mature asset class, but right now some of the most innovative moves are being made by the oldest investors of all. Rupert Bell is a Principal Consultant for PER, the leading search firm for private equity, based in Munich. He has over 20 years’ experience in private equity, as an investor and adviser, including a long period helping to establish a direct investment business for SandAire, a multi-family office in London.

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THE VIRTUAL MULTI FAMILY OFFICE Every year I take some time off and reflect on how I’m working with families and how I can improve my company to better serve my clients. Over the past year, I have been working on providing more and better services to my clients by improving my virtual office model. A paradigm shift is occurring across the industry and will continue to accelerate as clients demand more services and reduced fees. The private family office grew out of wealth created by business owners and innovators. When G1 (Generation 1 - the originator of wealth) had several hundred million dollars to billions of dollars, he or she needed an office to administer their day-today needs as well as to orchestrate their personal and financial


well-being. This orchestration involved core functions such as tax planning, accounting, investments, charitable gifting, asset protection and estate planning. Also, additional services such as the organization of family meetings, financial education, consulting on foundation management, business consulting and concierge services such as property management, travel arrangements and shopping assistants were added. The multifamily office (MFO) is an extension of the private family office. This transformation occurred to reduce the burden of family office fixed costs by spreading those costs for services over a larger number of clients. The cost to have a tax attorney, estate attorney, administrative people, accountants and staff members is

a significant overhead expense. However, what I find are clients with a net worth of $100 million dollars or less, only have a fraction of their net worth to invest with an MFO. It is the management of portfolios that provides the income which allows the MFO to provide services to their clients, so if you have more than $20 million to invest with one of the traditional multi-family offices, you may receive many of the same services I have been offering to my clients but you may be meeting with junior level associates and must work with people the firm employs. From my experience, most families with less than $10-$20 million of investable assets rarely have the opportunity to work with an MFO that can provide the family with a full complement of services.

An Example of the Current MFO Model - Recently an MFO contacted me and wanted to meet. They seemed to be a very sophisticated company and had beautiful offices. But, as we sat talking in their posh boardroom three aspects of their business model became concerning to me: 1. They were more interested in volume and increasing the number of clients than they were in the clients having a quality experience with a customized array of service offerings. 2. Their investments were all in public securities which are traded on the various exchanges. This fact made scalability easy for them though their clients were not as diversified as they could have been. 3. With smaller clients, those with $10 million or less in investible assets, the MFO had the junior relationship manager relay information from the client meeting to juniorlevel people. The resulting suggested strategies and understanding of the client’s needs was predictably pedestrian. Enter the Virtual MFO - Cloud computing, the internet, AI, robotics, and vendors offering outsourcing of every type of service on an as needed basis, are all combining to disrupt many industries. However, I have not seen much disintermediation of the traditional multi-family office space. Cameron Herold, who engineered 1-800-GOT-JUNK?’s spectacular growth from $2 million to $106 million, espouses only hir-

ing staff for positions you absolutely need to support your core competency and leveraging technology to increase service levels and decrease costs. Except for employees who are absolutely critical to the business, all other work should be done by outside experts. Using this philosophy allows Handwerk Multi Family Office and other virtual MFOs to provide services as needed by clients and allows constant access to the best and brightest minds in each advisory role. (see Image 1) Having access to specialized experts and thought leaders is critical when it comes to advanced planning topics such as succession planning, family governance or transitioning multi-generational assets. When choosing an organization to partner with, it is important to understand what services they offer as part of the portfolio fee and what other services the MFO offers and the charges for those services. Aside from portfolio management, our organization focuses on: • Asset protection • Tax mitigation • Charitable gifting • Estate planning Working with a Professional Network - We can work with our client’s accountants, lawyers and consultants to try and understand the family’s total picture or we can use our own experts each with specialized knowledge. When we outsource, it is to a vetted group of professionals that we believe to be best-in-class. The client pays only for the servic-

es they need and does so with no mark-up. Also, if the professional partner is not providing world class service, they can be replaced with other professionals waiting in the queue. Using variable cost partners allows our senior level people to spend up to 200 hours/year meeting with the family, delegating lower priority tasks but implementing the higher-level strategies with niche-specific professionals. What does working with a Virtual Multi Family Office mean to you? As a client with less than $10-$20 million to invest, being able to partner with an MFO with low overhead and senior level people who can spend 50-200 hours in the first year meeting with you, performing information analysis and setting/implementing the strategies is like finding a pot of gold. From my research, it seems clear that the margin pressure on family offices and multi-family offices is significant and increasing. As a traditional MFO who has a large office with corresponding overhead, it will become more difficult over time to compete in the marketplace for those “smaller” accounts and to maintain current margin levels with traditional clients versus those companies who are adopting the virtual MFO model. Derrick Handwerk Managing Partner Handwerk Multi Family Office LLC



WHAT BRAIN SCIENCE AND GOOD BUSINESS HAVE IN COMMON By Amana Manori,CLO of Introduction Capital Inc. Plasticity of the brain, otherwise referred to as neuroplasticity, is the ability of the brain to develop, modify and reprogram itself in response to its environment and impacts. Without plasticity, the brain would not be able to develop throughout the human lifespan or recover from injury. What happens when we take the tenets of this brain science and apply it to the sphere of business? The unconstrained business model, like the human brain, has the opportunity to recover, respond and continually improve throughout its life. With the right stimuli and a favourable professional environment, this type of business model is intentionally structured to evolve - both organically and purposefully. Implementing plasticity characteristics in the design of a relationshipbased business offers a modern approach to how we do business today, enabling us to build a business that not only attracts, but also retains, desired clientele. Build A Healthy Environment A healthy and stimulating environment can heal a damaged brain. Conversely, a damaged brain can endure prolonged and unnecessary distress with the lack of favourable inputs and amidst poor surroundings. Similarly, an enriched and invigorating professional environment can allow a business to flourish. A positive work atmosphere and a meaningful professional network can foster growth on many levels. In the construct of the healthy work environment, it is worth investing the time to understand the drivers, motivators, values and intentions of all stakeholders in the business ecosystem. Research shows that mindful activity, such as meditation, positively impacts brain activity particularly as it relates to gray matter. These positive inputs are proven to deal with distressed emotions such as anxiety, depression,


Amana Manori

Introduction Capital Inc fear and anger. Moreover, it plays a vital role in the ability of the body to heal itself. An investment in a purpose-built business that values its players will provide professional ammunition on many fronts, including the establishment of a competitive edge. In addition, it will motivate personnel and embed resilience in the firm’s infrastructure that will prove useful in challenging times. A positive and rejuvenating environment will also allow you to stay focused on what is important – the needs and wishes of your clients. This clarity will help avoid common misalignments between client desires and deliverables. Adopt A Discipline Brain fitness is an important factor in plasticity. Brain structures show the greatest improvements in gray matter volume in response to aerobic

exercise, including better executive function and faster processing speed. In mental reprogramming, repetition and reinforcement will cause the brain to remember the new activity. Essentially, practice and discipline determine the skill level of the new ability. It should come as no surprise that the same methodology works in business. Immersion and commitment will go a long way towards mastering your professional domain. Plasticity requires a focus on upward mobility whether it is a brain that is learning or a business that is leading. In order to learn, rigidity has to be abandoned and flexibility adopted. This nimbleness will allow the savvy business to manoeuvre and pivot in light of shifting economic factors and industry changes. Stagnating businesses are akin to deteriorating brains that are not exercised and are falling behind the pack. Stay Relevant Neuroplasticity does not suggest that the brain is malleable without any restrictions or limits – the fact remains that some parts of the brain are simply unable to take on new roles. It would also be an oversimplification to say that age, extent of damage and the level of treatment have no effect on the brain’s ability to recover, develop and excel. The truth is that these factors play a large role and some brains will not recover to full function or adapt to new functions. It is also true that younger brains react better to inputs and stimuli. For a business to succeed in the long term, inherent limitations must be identified. Outdated processes and viewpoints must be compensated for by the introduction of fresh and youthful outlooks. Hiring individuals to accommodate for deficits can complement the existing skillsets of the firm. While perhaps a difficult exercise to conduct, recognizing limitations will foster an open professional environment that is focused on ongoing improvement. Attention to relevance will ensure that you are attracting the right talent, clients and company. Dream Big The recent discoveries in the study of neuroscience are important because they show that even an old brain can

learn new tricks; that is, the brain is not static. In the grand scheme, this theoretically means that knowledge has no limits. Specifically, it means that altering the physical brain can result in a change in our abilities and enhancement of our performance. Apply this to the world of finance, and it not only highlights that legacy businesses can evolve but more importantly, that novice businesses can be designed with the capacity for continuous alteration. If plasticity is built into the DNA of a business, then adaptation and evolution will be integrated features towards manifesting an optimal model – the unconstrained model. An unconstrained model is open to both minor and major adjustments as required by its clients, environment and industry, as there are no impediments to the potential that can be achieved. It is also a responsive model whereby adverse impacts, however big or small, are not debilitating to business. Optimality is further enforced by the efficiency that the flexible business structure offers. Quite simply, business plasticity is good business. The ever-changing brain is designed to deal with physical, emotional and other influences of life; however, it also allows us to transcend the responsive level into the creative level. If we adopt this concept, it means that we not only have the ability to build receptive businesses within our professional disciplines, but more importantly that we can step outside of what currently exists and forge new paths. Introduction Capital Inc. (IC) is an avant-garde business that precisely matches sophisticated family office and institutional-grade capital with alternative opportunities globally. With a number of high pedigree global manager clients, the firm offers local dealer services to clients seeking Canadian institutional capital. With a demonstrated track record of over 13 years, IC’s unconstrained business model allows the firm to prioritize the interests of its investor and manager clients. IC hosts the leading annual Canadian Alternative Investment Forum (CAIF), which will be held on April 6th, 2017 in Toronto.




OSRINT FAMILY OFFICE MAGAZINE spoke with Sven Leidel, an expert for HNWI/UHNWI Risk Mitigation & Protection Strategies located in Hamburg, Germany. He is a partner at Privatimus GmbH, a provider of Sophisticated Premium Protection Services, with offices in Hamburg and London, as well as strategical operational hubs in Dusseldorf, Frankfurt, Munich, Berlin, Vienna and Zurich. FO: Mr. Leidel, please tell us about your professional security background and introduce yourself to our readers! LEIDEL: I was born in 1968 in Hamburg, Germany and I am a German citizen. As a former member of the German military police, I have been dealing with the topic of protection and security since 1988. Today I am involved, as an honorary member, in various national and international security and professional associations in advisory and executive functions. I am a professional lecturer and trainer, facilitator and specialist author, security consultant and expert in the field of protection strategies for exposed individuals. I have gained extensive expertise from more than 25 years of industry and professional experience and I have operated in numerous foreign assignments and projects in Europe, North America, Latin America as well as parts of Asia. My longtime customers include many major national and international corporations and insurance companies as well as small and medium-sized enterprises, exposed private individuals, family offices and family foundations as well as entrepreneurial families and high net worth individuals. Last but not least, I am an author and editor of two books in respect of Travel Risk Management; see (English) and (German). FO:

Sven Leidel OSRINT - Open Source Risk Intelligence What is OSRINT? Leidel: OSRINT stands for Open Source Risk Intelligence. It is probably the most innovative way of identifying risks and critical content in respect of a specific target (person or company) in public sources. In order to be efficient in the most possible way, the internet search is done and supported by a 24/7 operating crawler technology. This advanced monitoring technology helps to identify and track personal data online in open sources, that might also be useful for criminals. In addition, experienced risk analysts work as ‘human filters’ to identify threats and sensitive details in public sources on a 24/7 basis. Another part of OSRINT is the removal of critical data from the internet and other online sources, or if a removal is not possible, the displace of such content. Especially in today’s world where media and online outlets can ruin a reputation in a matter of minutes, it is important to always be one step ahead of the criminals and have the latest monitoring technology in place.


Angelo J. Robles FO: Please tell us about a typical client case! Leidel: A family office is reaching out to us, asking for a confidential face-to-face meeting with one of their exclusive FO clients. The client asks us to find out, what kind of private and critical details are available in public sources about himself and his family members. All we get from him is his first and his family name; nothing else. Now it is our job to try to find out as much as possible about the target; pretty much the same way criminals would start in order to identify possible victims. In one specific case, the HNWI did mention that he has already maintained a “low profile” for many years and he was sure that we should not be able find any pictures from him, no names and no pictures of his family members and maybe just a handful of companies that he is involved in. He did not even tell us how many children he has, nor any details in respect of his residence home and vacation real estates he might own. We agreed on 5 days of actual intense open source search from our end. Pretty quickly after starting the research, we found many critical details and put all the findings in a 45 pages’ written report. We ended up finding 27 pictures from himself, names and pictures of all his children and his wife, private addresses (residential and vacation), as well as 43 companies he and his relatives are currently involved in or he and his relatives were involved in in the past. You can imagine that the surprise was huge, when we presented the findings in a personal meeting. During the meeting, we did receive the up order to conduct security audits at the residential and vacation houses in order to optimize the physical and electronical security measures and to assist in deleting critical details and information from public sources (internet). Since then, we are also monitoring the internet 24/7 with the latest crawler technology in order to make sure, that we identify critical details and content on the internet around the clock and automatically. This gives us the opportunity to react quickly and in a timely manner as soon as we (the crawler) have identified new critical content. Just recently we found out that his children did establish almost a handful new companies without consulting with their parents in the first place. Within


the company registration process, the children made a mistake and used one of the family’s private address, which is absolutely not acceptable, because this is a weak point within the whole personal risk mitigation concept and strategy. FO: Can you really delete all data from the internet? Leidel: Of course not! Some data and content can be deleted from the internet or from specific homepages and probably the majority cannot. For example, a solution could be … in connection with a reputation management strategy, those data and content that is on the internet and cannot be deleted, you can try to displace this content on the internet by a so-called “positive storytelling technique”. This means that you create positive and non-critical content for a specific target (person or company) and strategically place it on the internet on existing homepages/platforms or you create your own new blogs and web pages. On those platforms where you have total control over the content, you can pretty much publish all kind of true or false/fake details that you want or that you need for your protection strategy. That way you create “helpful content” in order to be positively rated by Google, Bing & Co. Having this said, this means that your own non-critical content will show up within the search results on the first couple of pages on search engines. Unwanted content and details will be pushed back on the pages 5, 6 or even further back. It is our experience that most criminals just take a look at the findings on the pages 1 - 4. In addition, you can track the traffic on your own blogs and webpages; we call this “The Honey Pot Concept”. Which gives you a good first idea, who is looking for your client, what kind of keywords are used for the search, what is the main interest, where is the person located, a.s.o. FO: What is a Honey Pot Concept? Leidel: Honey Pots are mainly used by IT security professionals

in order to find out if hackers are interested in a certain IT landscape, where are they coming from, what kind of search and keywords are used, what kind of technology is used by the third party a.s.o.. Our Honey Pots are kind of modern traps. Like I already mentioned, we create blogs and homepages with a “specific real-fake content”, so people that are searching for a specific target (person or company) will get the search results within the search engine they use. As soon as they click on the search result, we are able to track their homepage visit and also their clicks and activities on the Honey Pot blog and homepage. We are able to see the country and city they are coming from, which online network they are using, how long they stay on the homepage, which additional content they have looked at and much more useful details. This is a risk indicator for us, which somebody is interested in specific information about a target. The information of interest could be the private address of the target, private activities/hobbies of the target and other critical details. In addition, you can spread false and fake details about a target, in order to blur the online traces and to make it more difficult for criminals to find real details and information in open sources. This is a very useful and effective protection concept.

FO: Why is it so important to know what kind of Details are available on the Internet? Leidel: It is our experience that criminals also look first on the internet and try to find out as much as possible useful details about possible targets and victims. The more useful details they find and the easier it is to get access to those details, the more likely it is, that criminals will pick a so-called “soft target” for their criminal activities (kidnapping, burglary, blackmailing, threatening. The goal of a comprehensive personal risk management is to become a “hard target”, in order to be unattractive and not of interest for criminals. You can compare this with the following: You do not have to install a tons of physical and technical security at your house, like they use at “Fort Knox”. Your house just needs to be more secured than the neighbour’s house. Criminals are looking for quick and easy wins, with hardly any risks of failure.

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As an American citizen living in the United States, a home-biased investment portfolio with equity in companies operating in the US, held with an American custodian bank and in US dollars is the norm. While understandable, it is not a prudent wealth management strategy. The financial well-being of the US-only investor depends solely on one country, one market and one currency. This is un-international and unwise. Simply adding an emerging market mutual fund, perhaps in other currencies, is not true international investment diversification either. Geographical investment diversification is key. Moving some funds to another jurisdiction, to other financial institutions and to a wealth manager with other perspectives and insights than a domestic wealth manager is the way to achieve true international investment diversification. Of course, it is great to remain confident in the US market, but the prudent American investor should be prepared for the unexpected (or the inevitable, depending on the point of view). With all eggs in one basket, the un-international investor stands to take a major loss should developments take a turn for the worse. No one knows how the future will unfold, but it is certain that volatility is on the rise and everything is constantly changing. Becoming a prudent, international investor “Made in Switzerland“ Some people think that there is something illegal, immoral or unethical in investing and holding assets outside their home territory. There are, however, many legitimate reasons for doing so, even if only to have a nest egg tucked away safely for a “rainy day.“ It is, however, of ultimate importance to do so in a taxcompliant manner, filing reports and paying taxes as



required. When truly going international, Switzerland is a jurisdiction providing many advantages. Putting secret Swiss bank accounts and tax evasion strategies from the past aside, Switzerland follows a white money strategy since 2009. Switzerland is reconfirmed as the global leader in private wealth management. The country’s long-term political and economic stability (in part thanks to Switzerland’s neutrality which keeps the country out of wars and skirmishes) earns the country a constant AAA-rating with a stable outlook from the world’s rating agencies. Swiss state-of-the-art wealth management expertise is world-renowned and attracts over 25% of the global cross-border wealth management business. Despite increased transparency in tax matters, privacy, confidentiality and discretion, especially regarding money matters, is a highly sensitive subject and Swiss wealth managers have an ingrained respect for privacy and handle all financial matters with utmost discretion. With ten new additions in 2016, there are

now over 50 Swiss wealth managers registered with the Securities and Exchange Commission in the United States as investment advisors. The SEC registration enables them to provide Swiss wealth management services to American clients domiciled in the US as well as abroad without restrictions. There are several Swiss banks and private banks happy to open a bank account for US clients but only in collaboration with a Swiss SECregistered wealth manager. Swiss SEC-compliant wealth managers come in all shapes and sizes Swiss SEC-compliant wealth managers come in all shapes and sizes – individual advisors, independent wealth managers, multi-family offices and Swiss banks with subsidiaries established for US business. Minimum amounts of investment range between USD 50,000 and USD 20,000,000, so there are options for every kind of US investor. Michel Guignard, Managing Director of LFA SA, Switzerland’s largest, independent SEC-registered wealth manager states, “Independent, LFA, is not bound to any particular bank and we focus entirely on our clients’ specific, individual needs for jurisdictional and international portfolio diversification, complementing domestic wealth strategies already in place back home. Through discretionary, advisory and special mandates with competitive pricing, we enable US clients to take advantage of international investment opportunities while adhering to US regulations and restrictions.“

decision to protect purchasing power, wealth and ultimately, the pursuit of happiness by having some diversification when it comes to jurisdiction, markets, currency and market expertise. A Swiss account is like having a life insurance policy. You hope you never need it but once when you do it can make all the difference.” Felix Weibel, CEO from Pictet North America Advisors SA, one of the early, SEC-registered investment advisors says, “PNAA was set up in 2006 at a time when the Pictet private bank partners believed there was a need for diversification in terms of investments and regions, which many HNWI and UHNWI in North America were neglecting to a large extent. Today we have a wellestablished business as an SEC RIA and can provide custody outside the US at our parent company Banque Pictet & Cie SA, which is a great additional advantage for our US clients.“ Emanuel Agustoni, an individual advisor at his company Golden Eagle Services, points out, “Switzerland is not a member of the European Union and the EUR currency, which gives Switzerland more independence and freedom than other financial centres in Europe.” He continues, “Swiss advisors and asset managers also require a Swiss license, which is a guarantee that they are controlled either directly by FINMA the Swiss Financial Market Supervisory Authority or another selfregulatory organization in Switzerland recognized by FINMA.” Getting established in Switzerland is uncomplicated

There are Swiss wealth managers affiliated with Swiss banks such as REYL Overseas Ltd. With offices in Zurich, Switzerland and in Dallas, Texas, Oliver Hohermuth, CEO explains some of the reasons for adding Swissness to an overall wealth strategy,

Establishing a relationship with a Swiss SEC-registered wealth manager and opening a Swiss bank account can be done from home, even though a trip to Switzerland is highly recommended to establish personal relationships firsthand.

“Since the U.S. has been the world’s superpower for more than a century and the leading global economy for decades, American investors very often forget to hedge their investments which often are in the United States exclusively and US dollars only. It is wise to understand that every empire comes to end and while we all hope it will not happen in our lifetime, it is a smart business

The Swiss SEC-registered wealth managers can be found on the Swiss platform WHERE AMERICANS ARE WELCOME – Swiss wealth management for US clients at where credentials can be checked before a wealth manager is selected. In addition, Swiss lawyers, tax advisers, trust advisers and trusted advisers are also available over the platform.




It is often assumed that the acclaimed American family, the Rockefellers, pioneered the family office in the late 19th century. However, history suggests otherwise. Wikipedia defines ‘family office’ as “A family office is a private company that manages investments and trusts for a single wealthy family.” The role of a family office is to manage, build and sustain the wealth of the family for current and future generations. To break it down, a family office makes life simpler to ‘enjoy life’. Family Office may be a Single Family Office (SFO) or a Multi-Family Office (MFO). In India, the trend of SFOs is picking up with about 75+ SFOs operating. Besides, there are some leading Wealth Advisors who have morphed into MFOs for some of their larger Clients. India has had a long and rich history of wealth creation, but with the advent of the Industrial Revolution, the centre of wealth creation shifted westward. It is worthwhile to quote from the ancient Indian treatise as follows: “Kautilya holds that wealth and wealth alone is important, in as much as charity and desire depend upon wealth for their realisation” - Translated from Kautilya’s Arthasastra The Forbes 100 list of richest Indians includes persons with wealth of more than US$ 1.25 billion each, and India’s richest man is listed at Number 36 in the list of Forbes 2016 Worldwide Billionaires. Indian Scenario: By general rule of thumb, Family Offices may be categorised into the following buckets by global standards, however, in India there are variances from this:


By C.A. Raghu Marwah

C.A. Raghu Marwah R.N. Marwah & Co. LLP The concept of Trusts as a means of succession planning is gaining ground, not so much for tax reasons because unlike in many western jurisdictions where there is a high rate of Inheritance Tax, in India, there has been no such tax since 1997 when Gift Tax was abolished. Tax on receipt of Gifts does, however, survive in a different form thru the Income Tax Act, 1961 when one receives gifts from non-relatives. With the opening up of the Indian economy in the 1990’s, the foreign exchange laws were also considerably liberalised, and from 2004 onwards every resident individual citizen is now free to make investments overseas across different

asset classes. The limit presently is USD 250,000/- per fiscal year per citizen and minor children, and family members may club their limits together to send higher amounts to acquire their favourite Vacation Home in London or Chalet in the Swiss Alps. Acquisition of more serious assets overseas would require the person to use his or her corporate vehicle or entity where it is permitted to remit overseas up to 400% net worth of the said corporate/ entity. A Trust or Society, which is the most common vehicle for holding the family wealth can only make Overseas Direct Investments (ODI) from India in the event that such Trust or Society is engaged in the sectors of manufacturing or hospital or education. So making ODI from India from a Private Family Trust can be a challenge. What has been more common, therefore, has been the practice of setting up Trusts or Foundations outside India in NIL or low tax jurisdictions. However, dealing with the regulatory impact of transferring assets into such offshore Trusts, especially where the majority of family wealth is located in India, has been a challenge. One may also take note of the decision of Mumbai Income Tax Appellate Tribunal (ITAT) in Shri Mohan Manoj Dhupelia & Ors where the ITAT held that the offshore trust had no substance and is a sham and thus to be disregarded and brought to tax the entire funds of the trust as undisclosed income of the beneficiary. In this global village and more-so after FATCA and BEPS, emphasis by most countries is on transparency by obtaining information from their residents in respect of financial and other assets held globally. Countries have introduced asset-based reporting (e.g. FATCA, FBAR, CRS, AML, similar Indian rules relating to foreign accounts/assets / beneficial interests, etc.) and entity / event-based reporting (e.g. CFC’s, offshore trusts, etc.) What is the need of the hour is to create a global identity and model for Indian family enterprises thru a MultiCountry Family Office. A model which is compliant with regulatory requirements applicable in India as well as other global jurisdictions. The much-touted mantra of ‘enjoy life’ which is the main USP of a Family Office, could very easily go horribly wrong if such compliant models are not followed and adopted.

Global SFO’s investing in India Assets: I would like to close by sharing my thoughts on a different concept which is of global families investing in Indian assets, such as Art, Real Estate, Equity, etc. With India’s status as an island of economic stability in an increasingly topsy-turvy global market-facing political headwinds, this is becoming a more realistic idea. Real GDP growth in India in the first half of 2016-17 has been estimated at 7.2% by the Government. In comparison, the IMF’s January 2017 update of its World Economic Outlook forecast is projecting an increase in global growth from 3.1 percent in 2016 to 3.4 percent in 2017, with a corresponding increase in growth for advanced economies from 1.6 percent to 1.9 percent. Therefore, there is a higher wealth creation potential in India. The Economic Survey of 2016-17 recently published by the Government in January 2017 has highlighted biases in perception by the global rating agencies between China and India. China’s credit rating was upgraded from A+ to AA- in December 2010 while India’s has remained unchanged at BBB-. From 2009 to 2015, China’s creditto-GDP soared from about 142 percent to 205 percent and its growth decelerated. The contrast with India’s indicators is striking. Such biases are likely to be removed in the short term leading to greater money flows into India. We are already seeing the initial signs of this, with Foreign direct investment (FDI) inflows into India in 2016 calendar year jumping 18% to a record $46.4 billion, at a time global FDI inflows fell. Equity Guru’s have advised that Indian equities are a good buy with markets remaining buoyed by a host of factors including halt in US$ rally, government’s spending focus finely balanced with continued fiscal consolidation and encouraging corporate commentary. Based upon FY 2019 EPS of Rs. 575 for Nifty, the earnings yield is decisively in favour of equities when the ten year G-Sec yield is quoting at ~6.4% only. Even after considering a Rupee USD hedging strategy of three to five years, the upside potential is significant. C.A. Raghu Marwah, Partner, R.N. Marwah & Co. LLP, New Delhi, India



Dan Rose - Partner

Graham Foster - Partner

Carter Backer Winter LLP (CBW), London accountants, tax and business advisers, has promoted two new partners to its team. The new partners are Graham Foster and Dan Rose who both have significant experience and expertise in their respective fields.

new promotions bring the total number of partners at CBW to 20. The firm recently ranked 48th in the UK for the second year running, according to the 2017 survey of the UK’s Top accountancy firms conducted by Accountancy.

Graham Foster, Director of Financial Planning, has 18 years’ experience in the financial services industry. He has worked in the IFA sector since 1996 and became an IFA in 2001. Over time, Graham developed his own client base and held senior roles in well-established firms where his input led to their further development. He joined CBW’s Financial Planning Team in 2012.

Peter Winter, Managing Partner, said: “We have made two new partner promotions that will enhance the existing partnership, bringing fresh ideas and perspectives with their many years of experience. Developing and rewarding talent is an important part of our growth strategy.”

Dan Rose, Director of General Practice, joined CBW in July 2013 as Audit Manager. Prior to this, he trained with a local five-partner accounting practice, gaining a wide range of experience and insight across a number of industries. His skills range from basic bookkeeping and accounting services to more complex share valuations and due diligence exercises. He recently completed the due diligence on a £260m London property and is currently assisting a client with cashflows and valuations to raise funds to trade internationally. The


He added: “Graham and Dan thoroughly deserve their promotions, which recognise their hard work and dedication to CBW and its values. Their promotions will help us to build a strong platform for future growth.” CBW is a City accountancy, tax and financial planning consultancy, which offers a breadth of expertise typically only found in the top 20 UK practices. The firm has 20 partners and more than 140 supporting staff who strive to be open, straightforward, principled and accountable.

Opportunity. Risk. Return. 3 - 4 May 2017 Suntec Singapore

Bringing together LPs, GPs, developers, REIT owners, banks and more, to get straight to the heart of the investment opportunities for your business, exploring emerging asset classes and geographies across Asia Pacific.

CONFIRMED SPEAKERS INCLUDE: Greg Lapham Chief Investment Officer BlackRock

John Lim Group Chief Executive Officer ARA Asset Management Ltd

Hidetoshi Ono Managing Director Manulife Real Estate

Conrad Tsang Founder & Chairman Strategic Year Holdings Ltd

Louise Kavanagh Director, Fund Manager Invesco Real Estate Investment (Asia) LLC

Ankur Gupta Vice-President Brookfield Asset Management

Suchad Chiaranussati Chairman SC Capital

Kenneth Gaw President & Managing Principal Gaw Capital Partners

Jonathan Yap Chief Investment Officer and Head of Real Estate Funds Ascendas-Singbridge

Mr Young Wuk Chai Chief Investment Officer Samsung sra Asset Management

Bryan Southergill Managing Director, Real Estate KKR

David Blackhall Managing Director VinaCapital

Anthony Ritossa Chairman Ritossa Family Office

Justine Wingrove Managing Director Grove Fund Management

Gretchen Yuan Principal Hodes-Weill & Associates

Daniel Cerf Chief Executive Officer ARA-CWT Trust Management (Cache) Ltd

Julian Kwan CEO & Founder Investacrowd

Chua Hsien Yang Chief Executive Office Keppel DC REIT

Khoon Ng Chief Executive Officer Country Garden RE Asset Management

Christopher Chung Managing Director (Asia) Lewis Trust Group

Michael de Jong-Douglas Managing Director ESR Singapore Pte Ltd



Prime Minister’s Trade Envoy from the UK to Angola


by Baroness Lindsay Northover

Rating agency Standard & Poor’s maintained its rating for Angola at “B” and the outlook negative over the next 18 months despite the likely increase in the price of oil. But before investors shy away from the challenges undoubtedly to be faced in Angola, it is well worth looking at some of the long-term trends. This is a fertile country, with plenty of scope to supply its own energy and food needs, as well as export to the region and beyond.

Family Offices which are resilient and looking to the long-term may well show an interest in Angola. This oil rich country, vying with Nigeria in the level of its production (1.7 million barrels of crude per day up to the end of 2016), is now seeking to diversify, with the opportunities that provides. Angola’s economy grew 0.5% in 2016 and is likely accelerate this year to 1.4%; the country’s budget deficit is expected to remain relatively high in the period between 2017 and 2021, but lowering to between 5.6% of GDP this year and 4.3% in 2021. While the inflation rate will tend to slow down, the reduction of fuel subsidies and the devaluation of the Kwanza against major currencies will keep it high, although it is expected to start falling to 22.4% in 2017 to reach 7.7% by 2021 (a significant drop given that it surpassed 40% in 2016).


The oil sector remains key in Angola. Companies like BP are well-embedded, with a wellestablished supply chain. It is one of BP’s most profitable fields. However, exploration has not yet revealed significant further fields that merit exploitation, and without this, production will decline over the next few years. The decrease in the price of oil has had its effects on the Angolan economy, as with other oil-rich countries. Seeking to diversify away from oil, the Angolan Government has commissioned a nationwide survey (Planageo) of its mineral resources. Results are already receiving significant attention. At the recent Mining Indaba conference in Cape Town, there was such interest in its findings that many were not able to get into the packed room that was being addressed by the Minister of Geology and Mines. Various

possibilities are emerging – for example copper on the borders with Zambia. Mining companies will be able to bid for concessions, and make further investigations to see if profitable production can be secured. Diamond mining is also wellestablished in Angola, with Russian and Israeli companies generally in the lead here. Angola has major infrastructure needs, as elsewhere in Africa. Chinese investment has improved roads and railways, although some poor quality work can be seen in the disintegration of some of those new roads. With the African Union, Africa Development Bank, World Bank and IMF support for infrastructure, there will be opportunities here for investment and investors. Angola has major potential in hydropower, and could supply its own needs as well as those across the region. There are massive schemes planned or underway on the Kwanza River, and one of these, at Lauca, is due to come on stream in its first stages this July. There are a number of schemes which the dynamic Minister of Energy and Water, Mr João Baptista Borges, proposes for other sections of the river, and other parts of the country as part of the country’s Angola Energy 2025 program, which aims

to bring power to 60% of the population by 2025. There are significant investment possibilities here. Angola has the key African potential in solar power; this has not yet made as much progress as it might and will merit investment. A major priority for the Angolan Government is in encouraging the development of its agriculture sector. It suffered a long and appalling civil war, and work to clear landmines continues. Its land is fertile, and once again has great potential to supply not only the country itself but beyond, but first needs to rebuild expertise The UK is playing its part here, in conjunction with the Royal Agricultural University (RAU). Coffee plantations were successful in the past and could be again, along with cultivating cotton, bananas, maize, cassava, soya, sugar-cane, palm oil, cattle-rearing, and much else besides. Angola scores poorly on the ease of doing business index, and securing payment in foreign currency has proved particularly challenging. Angola knows that it needs to address this if it is to attract inward investment. Support exists for UK businesses wishing to explore opportunities in Angola, in the form of the Department for International Trade (DIT) team at the British Embassy in Luanda. (Contact can be made with them via DIT regional offices across the UK.) Some political change is coming to the country, with its President, HE Jose Eduardo Dos Santos, who has been in power since 1979, standing down this year. There will be elections in August, and his successor will not come from his family, who have long dominated the politics, economy and society of Angola. This could be a moment of change for the country. Companies investing in Angola need to be resilient, but the long-term prospects for the country, if it follows the path of reform that its leaders say they wish to pursue, should bring about the change which could enable the economy to fulfil the potential that is clearly there.


The Universal Film & Festival Organisation (UFFO) was founded to support and implement a code of practice for film festivals throughout the world. It is now dubbed ‘FEST-COP’, and its logo is now a familiar sight at many film festivals. The UFFO is a global not-for-profit voluntary organisation, and it created a “best business code of practice” for film festivals to combat the high level of corruption that blights the industry. Its former president was the legendary actress Maureen O’Hara, and the organisation now has at least 240 film festival members. UFFO’s FEST-COP is entirely voluntary, free and easy to implement. Also, it is a blueprint for filmmakers in deciding which film festivals to do business with. Only film festivals that have subscribed to the UFFO best business code of practice are entitled to use the UFFO logo. The organisation is now seeking a benefactor to help it move forward with its plans to further its remit and to create an online porthole to ensure filmmakers can deal with film festivals via a trusted source. The porthole will also act as a distribution platform and as an online TV channel for filmmakers to show their work. UFFO is now planning the ‘Best of Festivals’ event and bringing the member festivals, their best films, actors, directors and producers to one event that will rival the biggest events in the world. Email -



Energy Efficiency Investing Energy efficiency is a worthy cause but has not captured the excitement of other ‘impact’ investment classes like renewables. To date, very few companies have approached the sector with enthusiasm. However, a few young entrepreneurs are now buzzing because they have brought together tools from the hedge fund industry, engineering and insurance as a means to clearly enlist the profit motive to tackle climate change. They are determined to address the issues that have plagued energy efficiency investing to date. They believe in a modern age with an absolute focus on delivering value and mitigating risk.

only finding its way into property valuation reports but also into legislation. Corporate social responsibility (“CSR”) is creating a ‘tenant pull’ for building renovation and the wonderful fact that 40% of EU building stock was built pre-1960 means the opportunity is enormous. So why are so few energy efficiency projects happening? In part because the European legislation is only now growing teeth. In part because of the landlord/ tenant disincentive makes it difficult. Most to blame however are poor performance projection tools making projects expensive to finance because the technical risk is not accurately assessed and therefore cannot be insured.

Extracting the Green Premium The demand to extract energy efficiencies from commercial buildings is clear. Good economic sense to reduce utility bills combines with a commitment from Governments across Europe to a reduction in carbon emissions. Energy performance certification and green building status is not

Whole-Building-Energy-Model This is the heart of the problem that exciting young companies like Pivot Energy are addressing. In their case, a multi-disciplinary and international team has come together to grasp the opportunity and requirement to apply the longstanding disciplines of standardisation and risk pricing


within the financial services industry to building engineering and specifically to the business case assessment, risk analysis and delivery of energy renovation projects. Pivot Energy can enter the project development cycle before the commercial building owner, or engineering consultant has even determined the scope of their assessment. Because the Pivot whole-building-energymodel uses big data and statistics, it can operate on very basic inputs about a building, or portfolio of buildings. Instantaneously and at very low cost it can present viable projects complete with technology solution, savings, business case and returns all within the gift wrapper of a technical and financial risk assessment. The initial expensive engineering assessment is therefore replaced by an algorithm. Their model does not negate the requirement for engineers who will further inform the model because their involvement now comfortably meets the cost/benefit analysis. Rather, Pivot provides an investment grade decision support tool that cuts right through the

key inhibitors mentioned above and facilitates an educated engagement with the key stakeholders being asked to go on risk. Pivot’s Energy Management Platform produces this assessment and then links up with the CFO and/or a third party finance provider, a building engineer and an insurance company and can then manage the project development at the direction of the building owner with the key choices being (a) financing on or off balance sheet, and (b) whether to hold the technical risk or transfer it to an insurance company. Investment Case Evaluation Pivot is proving that it is unnecessary for these projects to continue to have a problem with confidence around performance which then leads to prohibitive transaction costs, in particular around the financing. Early, science-based and commercial engagement with C-suite property investors is key to unblocking and scaling the market. Further engineering design and diligence of a project can then be done in the knowledge there is a real opportunity on the other side of it, and indeed if a commercial building owner chooses a complete off-balance sheet and insured solution, then Pivot takes all future costs of the project to full commissioning and beyond. Core to Pivot’s proposition is that buildings are not unique, building construction codes are generally followed, and energy management assets have generic outputs. The model combines open source software with CEN-ISO accredited standards to simulate a building’s thermal energy demands. A separate module cross refers to a library of generalised building construction data coupled with climatological statistics meaning gaps in initial data can be accurately bridged. When Monte Carlo wrappers are added to this heady cocktail, the model generates probability distributions of energy use and energy savings rather than single deterministic estimates. These are quantified into financial and risk metrics familiar to financiers and insurers who need consistent and reliable performance risk metrics to thoroughly evaluate the investment and or insurability fitness of proposed renovation projects. Hedge Fund Asset Pricing Models This is what is meant about applying the practices of hedge fund asset pricing models to the world of building engineering. By providing a familiar,

standardised and sophisticated backdrop for financing and insurance providers, Pivot believes this will further reduce transaction costs and enable the energy efficiency market to scale and achieve some of its enormous potential. Market Place and Investment Opportunity The focus, for now, must be with large counterparties who own or consult on sizeable portfolios in need of a front-to-back solution to extract energy efficiencies, drive net asset value and achieve regulatory compliance. This is a marketplace with both private and public institutions seeking the same solution for their building stock; when combining this credit risk with an insurance contract, underwriting the technical performance of an energy upgrade, it becomes a very attractive financing opportunity. Pivot Energy is offering this to investors at high single digit returns over 5 – 10 years and seeking to mitigate risk further through both the portfolio effect and On Bill Finance (“OBF”) where debt service is collected through the electricity bill providing a significant credit enhancement given neither tenants, or failing that, landlords will switch the lights off. Key Drivers As one real and timely example of the market drivers, the UK’s Minimum Energy Efficiency Standards (“MEES”) will be effective for commercially-let stock from April 2018 and will prohibit the renewal of existing tenancies or the granting new tenancies if the building has less than the minimum energy performance certificate (“EPC”) rating of E. This has revealed a large capex hole amongst property owners, private and public, that must be filled, and quickly. A New Asset Class The market opportunity for energy efficiency is expanding, but investors will only enter this asset class if it steps up and meets the standards they expect elsewhere. The sentence should be “New thinking is needed to unblock and scale thereby tackling climate change while offering diversification and very attractive risk-adjusted returns for investors. Everybody wins (apart from the utility companies). Markus Rudling - Chairman of the Board Pivot Energy Services -


OWNING MULTIPLE PROPERTIES London and New York to Sydney and Singapore Imagine owning multiple properties across the globe in some of the most desirable locations from London and New York to Sydney and Singapore. You may have significant art collections as a result of a lifetime of passionate investing. Your possessions may well include a fleet of luxury vehicles including classics and high-performance cars as well as cars supplied to members of staff. In the summer months you spend time sailing around the Mediterranean with family


and friends on board your private yacht, while in the winter you enjoy the slopes of St Moritz from the privacy of your chocolate-box style chalet. The likelihood is that with this type of lifestyle there are significant assets to be managed in the background. You may decide that a Family Office structure provides the best way to manage your wealth resulting in greater control of your assets as well as reducing the overall costs. While the professionals

employed within the Family Office will be highly specialist experts in their own field one area where Family Offices also get involved is in the placement of the insurance programme from the family. This has potential to leave the principal and their family exposed as they do not ordinarily hire insurance professionals. The potential insurances that the Family Office will have to place include both personally owned assets, assets held in trust or

through some other corporate structure. This may include Home and Contents across the globe, Valuable collections including Art, Jewellery and other investments of passion, Cars including high value and high-performance vehicles, Liability insurance including excess layer or umbrella cover, Yachts and Aircraft, Kidnap and Ransom, Commercial Property (Real Estate) And Directors and Officers In order to protect the family with a suitable insurance programme, it is vital that the Family Office Advisors understand the principal’s lifestyle and attitude to risk before it can be effectively managed. They will also need to employ advisors who understand the complex requirements of UHNWI’s and their families. This is where a specialist insurance broker should be engaged. There are only a handful of specialist brokers who can truly support the client’s insurance programme across the globe. It is often seen that clients will have multiple brokers across a number of jurisdictions. At best this can result in the client overpaying across their portfolio as each broker earns a commission for placing the policy. At worst this can leave the client potentially exposed to a major loss as there is

no coordinated approach to managing the various risks. The first step that a Family Office should undertake is to create a shortlist of brokers who may be able to assist with the placement of insurance. This list can be created but seeking advice from other professional advisors who service the clients varied needs. The Family Office should conduct interviews with potential brokers to ensure there is a cultural fit and the broker can provide the full gamut of services required. After all, it is vital to have a good working relationship, and if the personalities do not fit then, it is better to know this upfront. There is no benefit in pitting one broker against another in the placement of the insurance programme. In fact, this can be to the detriment of the client as it prevents the broker negotiating the best possible terms from insurers. Once a broker has been appointed a full disclosure of the current insurance programme should be made to the broker including a copy of all policy schedules and details of the claims experience. It is the broker’s job to then put together a full and detailed report on the current insurance programme including a gap analysis as well as a proposition

for a coordinated, global insurance programme with a clear, open and transparent fee proposal. I believe the fee-based approach is the most appropriate way for the broker to be remunerated in these circumstances. This is at odds with most of the general insurance industry where commissions are still prevalent. The commission model can lead to conflicts of interest if the premium is reduced then so are the broker’s earnings. Also, commission levels can be fairly high which can lead to a disconnect between the brokers earning s and the work that they are undertaking. It can also provide additional tax savings for the client. For any client choosing the most suitable advisors for their own particular requirements is paramount. The same is true in the placement of large and complex insurance programmes where the ability to mitigate risk across the globe is can only be undertaken by a few specialist providers. The dangers of choosing the wrong advisor can have significant financial and reputation harm. Sam Bowen LLB (Hons) Cert CII Head of Sales and Development Stackhouse Poland Limited


EVERYTHING FAMILY OFFICES NEED TO KNOW ABOUT HOUSEHOLD EMPLOYEES Family offices work hard to make life simpler and more convenient for their clients. Political circumstances are evolving, and legislative changes continue, increasing the scrutiny surrounding tax compliance and employee rights. The management of household employees has emerged as a crucial area for family offices to consider when advising clients. With the right support, family offices can make household payroll and “nanny tax” compliance a natural aspect of the service they offer to clients. That means saving them time, money, and potential legal penalties. Household Employees: A Hot Topic in the Media As issues remain heated in the political landscape, including concerns like immigration and tax reform, official government bodies have begun to scrutinize anyone who hires a household employee — nannies, senior caregivers, housekeepers, etc. The IRS and labor department are collaborating to further enforce wage and hour laws, as estimates suggest that there is more than $5 billion in uncollected payroll taxes from domestic workers.

Daniel Rafeedie

HomeWork Solutions governing domestic employment through a family office are consistent with those of the corporate world. However, this is inaccurate and can often lead to issues down the road.

The news has been filled with nanny tax issues recently as political cabinet members face an investigation into their household hiring practices. Soon after the penalization of Mick Mulvaney and Wilbur Ross, another cabinet member, Andrew Puzder, withdrew from cabinet consideration in part for failure to comply with domestic employment law. It isn’t exclusively highprofile individuals facing the threats that come with mismanaging employment taxes; many families struggle to understand their position as household employers.

According to Tom Hillis, co-founder of Galahad Advisors, a human resource and loss prevention firm for family employers, “In the vast majority of cases, the household employment rules are going to apply to the family regardless of how the domestic workers are technically employed. The key is who directs the work to be done. In almost all of these situations, the family ultimately directs the work and would be subject to the household employment rules (including overtime rules) and would likely be responsible for any discrimination claims.”

Many high-net-worth employers leveraging a family office try particularly hard to avoid any negative media attention, including litigation with their household staff. To mitigate these risks, it is important for family office firms to provide holistic guidance and protection. Many payroll firms mistakenly believe that regulations

Compliance is Becoming More Complicated for Employers As important as it is to properly pay nanny taxes, the scope of the information surrounding compliance standards doesn’t make things easy for family offices to understand. For instance, the adoption of


a Domestic Worker’s Bill of Rights by several states has heightened awareness surrounding the benefits of legally paying household employees, and provided a further layer of protection above FLSA. These laws also define more nuances for which employers must be compliant. Domestic Worker’s Bills of Rights vary by state, but overall, each gives home staff the right to overtime, set days of rest, holiday pay, and protection. Just some of the states implementing these new rules include: • • • • • • •

Hawaii (Signed in 2013) New York (Signed in 2010) Oregon (Signed in 2015) Massachusetts (Signed in 2014) Illinois (Signed 2016) Connecticut (Signed 2015) California (Signed 2013, updated in 2016)

Without a thorough understanding of payroll accountability and withholding systems, it can be difficult to determine how household employees should be properly paid. It’s no wonder that current estimates indicate more than 85% of domestic employers fail to file their taxes correctly. In the case of high-profile clients, the risk is certainly not worth the reward. The Complexity of Labor Laws Many family office clients still fail to realize that hiring an individual to work in their home in a situation where they have control over how the work is done, makes them a household employer. It doesn’t matter how many hours the individual works. That means that W4 forms need to be filled out, and employees must complete I9 forms for employee verification. Additionally, it’s the responsibility of the employer to determine that their staff is eligible to work in the US. Under the guidelines of the FLSA, the Department of Labor works fiercely to protect the rights of domestic workers. This means that in addition to fair and humane treatment, employers must: • Provide pay stubs: 39 states now require employers

to offer itemized pay stubs for household employees, as part of a wave of new legislation designed for wage theft prevention. Laws suggest that without a pay stub, it’s difficult to ascertain if employees are being paid properly, with the correct deductions. This means that family office clients need to frequently fill out information about the dates of paychecks, the pay rate for hours and overtime, and itemized lists of deductions. Track employee working hours: Because domestic workers are listed under the “Fair Labor Standards Act” as non-exempt workers, employers need to manage issues such as minimum wage coverage, hourly wage and overtime compensation. • Complete formal wage agreements with employees: Today, every contract with a domestic worker must state an hourly wage that must be the greater of the minimum wage under local, state, or federal law. Existing G5 contracts also need to be amended to reflect this minimum wage agreement. • Pay employees at set intervals: The times at which domestic workers must be paid vary per state. For instance, Connecticut requires home staff to be paid weekly, while Mississippi allows for semi-monthly payments. There Is Help Available for Family Offices Household payroll experts allow family offices to offer broader services to their clients, with a focus on compliance. These services can include; electronic paystubs/direct deposit, employee work agreements, and mobile timekeeping applications. Specialists in domestic taxes and payroll can make compliance a more formal part of family office practices. HomeWork Solutions is a national household payroll and tax compliance company that maintains outsourcing partnerships with family office firms nationwide. HomeWork Solutions specializes in providing household employers and their tax preparers real solutions for nanny tax compliance.


CLASSIC CAR INDICES by Pierre-Yves Augsburger Senior Consultant at Fuchs & Associés Finance SA

Over the past decade, the increased wealth measured by the number of HNWIs coupled with abundant liquidity propelled by accommodative monetary policies from the major Central Banks have contributed to the steady price increase of most tangible assets. Classic Cars have largely benefitted from this trend and are definitely on the radar as this “investment of passion” has exhibited the best performance among other tangible assets, both on a 5 and ten-year horizon.

expert and get advice from him. Anyway, the Classic Car scene is much more complex than traditional asset classes. Given the observed lack of transparency and close to a non-existing regulation of the asset class, it is essential that you really place yourself in the hands of a trusted and highly knowledgeable advisor, or become yourself a true expert. Real independent advice is both key and increasingly rare to find in a market where many dealers and auction houses are just surfing on the wave.

How to invest in classic cars. Classic cars as an asset class. For most investors, the investing into classic cars and benefiting from the attractive returns of the Classic Car market does not appear as straightforward, as access is often difficult. So how does one invest in Classic Cars? On the one hand, you could have a closer look at Classic Car Indices, just as you would probably do with equity markets. On the other hand, you may find a Classic Car


If looking at Classic Car Indices, you can imagine that each index has its own construction bias as this is also the case with the well-known equity or property indices. And even if a car has a specific identification number: the VIN number and can as such be properly identified. In comparison, in the financial world, a

company having the same ISIN number is accessible to investors via millions of shares. Furthermore, a Mercedes 300 SL Gullwing is not fungible with the same 300 SL bearing the same production year and the exact same colour, as history matters in Classic Cars and counterfeits are sometimes to be found.

Weighted Index and tracks not only verified auction results but also private sales. The HAGI indices are calculated in £ and only with approved transaction data of cars in either “concours” or “one” condition. The Knight Frank Luxury Investment Index use the HAGI Index for the Classic Car component of the KFLI Index.

Market Cap-Weighted vs Price Weighter Index.

Hagerty, a US company active in the field of insurance is publishing classic car indices and a rating barometer measuring the status of the Classic Car market in terms of activity. The indices are inflation adjusted and exist for the global market (Hagerty Market Index) and also with the following sub-indices: 1950’ American, Affordable Classics, Blue Chips, British Cars, Ferrari, German Collectibles, Muscle Cars and are tracking on a monthly basis the price moves of cars sold.

In the equity world, most of the indices are Market-Cap Weighted Index, well-known exceptions being the DJ Industrial and Nikkei 225 which are Price-Weighted Indices. In the Classic Car world, most indices are Price Index, and in particular, if the Index tracks a low number of cars, the evolution of the Index may be largely distorted by this construction methodology. The main Classic Car indices. In this section, we are going to present the most known Classic Car Indices, with the aim not being to elaborate on the evaluation methods of each index but simply give a few introductory considerations on each. It is important to mention that even though Classic Cars exists since over 100 years, not much long term data is available and it is only recently that we have experienced the emergence of Classic Car Indices together with an interest group not only composed of car enthusiasts but also of investors looking for a good return. Most of the Index providers make available some data and information on their website, however further information and detailed figures often require a subscription. HAGI (Historic Automobile Group International) offers a Top Index incorporating 50 cars with a monthly calculation of this index; figures exist since 31.12.2008 (back-tested figures since 1.1.1980 using an equally weighted formula). Additionally to this Top Index, HAGI is calculating make specific indices as the HAGI-F Index for Ferrari (12 constituents), the HAGI-P Index (Porsche with 14 cars), the HAGI-MB Index with 27 Mercedes but only 2 Mercedes are part of the Top-Index, this in order not to distort this global index. The HAGI ex P&F is composed of 24 models from 17 makes. HAGI indices are constructed with the same standards as the one used by major financial market indices, the methodology used is the Market Cap-Weighted including a Survival-

The K500 Powered by Kidston a dealer and consultant based in Geneva incorporates data from some 30’000 constantly growing auction results from over two decades of sales and tracks 500 cars. Each car of the K500 has been chosen for its historical and intrinsic interest. K500 also produce a curve tracking the price history fluctuation for each car included in the K500 Index. K500 also calculate a rating for a wide range of classic car: the Mercedes 300 SLR, a real “holly grail” would merit 100 points, the Ferrari 250 GT Lusso is rated 72 points, a Fiat 500 15 points... The German Association of the Automotive Industry (VDA) publishes the DOX Index, the Deutscher Oldtimers Index since 2009. This Index mirrors the majority of Oldtimers driving in Germany; it is calculated once a year and incorporate 88 cars from 7 different countries and 35 makes. The average price of the cars is less than 50’00€, which renders this Index more in line with the type of cars driven by most of the Classic Car enthusiast and way different that the mix of cars included by the other Index providers. The prices are taken from Classic Analytics with car condition being “2” and “3”. The constituents of the DOX Index can be changed and rebalanced every three years. The Coutts Index is developed with Fathom Consulting and monitors the performance of passion assets. The Index captures the price return in local currency (net of the holding costs) of 14 passion assets across two broad categories: trophy property and alternative investments.


In this last category, we find into collectables, the Classic Car component which is weighted at 4.2%. In the Coutts Index. The Coutts Index provides since 2014 a broader story on how non-financial assets performed over time. The Classic Cars incorporated in the Coutts Index only include vehicles( models) which have exceeded $500’000 at auction and which have been sold more than ten times. Putting the indices into perspective. By analysing and monitoring the main International Classic Car Indices, you can somewhat start to compare the evolution of this relatively new but promising asset class. But beware, a lot of heterogeneity is present. Since the end of 2015, Classic Car prices are either slightly up or tending sideways. The market and the quest for an attractive return therein are more challenging than they used to be and only collectors cars and extremely highquality cars (as for example the Bugatti 57S Cabriolet that sold in March 2017 at Amelia Island for 7.7 million $) are marking new records in terms of price. In some segments of the market, the supply of cars on sales at

somewhat non-realistic price tags not reflecting the true quality offered is too high. Nevertheless, some sectors / segments of the Classic Car market are still following an upward trend such as for instance sports cars from the 80’s and 90’s or race cars with a pedigree. The supercar and hypercar segments are also continuing to attract new buyers. In conclusion, we could advise you not to look only at the empirical data derived from classic car indexes as well as the price fluctuations they are capturing, but simply enjoy driving your classic car(s) for the sake of it. As we are approaching the spring season in the North Hemisphere, just drive as if you’ll live forever!

12th Annual

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The decision to replace an existing family office accounting system or implement technology for the first time requires substantial thought. Many factors must be considered – from downtime and budget to the availability of internal resources and often varying opinions of family members. While all technology projects face hurdles along the way, the challenge is to prevent hiccups from becoming major roadblocks that run up costs and impact the ultimate success of the project. To ensure the family does not get saddled with more than it bargained for, below are seven pitfalls to avoid when embarking on a technology project. 1. Failure to secure buy-in from “the top” – Implementing technology is a commitment. For a project to succeed, the entire office, including family members and support professionals, must be on board. There needs to be consensus on the overall project and its priority vis-àvis other responsibilities. If not, individuals critical to the project may be pulled off suddenly to focus on other activities deemed more important by certain members of the family. Without top-down support, the project risks being delayed (or failing altogether) due to lack of time, funding or resources.


3. Not understanding what can go wrong – Even the bestlaid plans can face unexpected hurdles. Expertise gaps, resource shortages, data integration issues and misalignment of expectations can cause delays in the project and increase costs.

Michael Slemmer COO FundCount 2. Not defining goals and what constitutes success – A family office accounting system must be flexible enough to meet the accounting and reporting requirements of all parties -- whether the 93-year-old matriarch, the 22 years old millennial or the tax specialist. Each stakeholder has different goals and expectations. And each will have a different way to gauge success. It’s important to understand why the family is undertaking the project. Is it to save money? Add value? Manage risk? Clarify and align perspectives. Decide up front what problems need to be solved. Articulate goals and determine how success will be measured. Without clearly defined goals, it’s easy to lose a sense of priorities and fall prey to “scope creep,” which will impact the perceived success of the project.

To mitigate these risks, ensure the vendor has a rigorous process for implementation that clearly delineates key decision points. Work together to identify where the challenges are likely to arise and proactively develop a plan to address those issues. Ensure that the family office project manager fully understands what is required at each step so that responsibilities can be assigned in advance and experts brought in as needed. “Get the family’s internal house in order by preparing data,” advises Marcella Odum, Chief Financial Officer & Vice President, The Lupton Company. “Know the new system requirements and address hardware, software, server needs or interfaces to existing systems in advance.” Having a solid grasp of the project will enable the family to quickly identify red flags and correct data or connectivity issues before they become a major stumbling block. 4. Underestimating costs and resources – The first step in

evaluating different vendor solutions is to make sure it is an apples-to-apples comparison. Know what is included as part of the software package, and what costs – maintenance, training, upgrades, reports, customer support – are additional. There is a big difference between a system’s price, which is a onetime expenditure, and its cost – which goes on forever. When calculating Return on Investment (ROI) for the project, don’t forget to factor in the cost for internal resources, additional hardware/software and productivity lost as employees get up to speed on the new system. Balance those costs against savings as a result of new efficiencies. 5. Getting blinded by bells and whistles – Many of today’s accounting systems include visual components and whiz-bang reporting features, which make it is easy to be swept away by the initial “wow” effect. Know the family’s technology strategy. Are they conservative or cutting edge? “Balance the advantages emerging technologies present versus the various risks,” advises Hugh Bagatelle, founding partner, Windward Advisory Group. Peel back the veneer. Dig deeper to understand critical components and what the system can and cannot do. For example, how is data gathered -- is it manual or automatic? Can existing spreadsheets be integrated into the system? Are the financial calculations sound? Can custom reports be created in-house? Request several demonstrations of the software to be sure the office understands the nuts and bolts of the system. Chris Martinez, Managing Director, Oakbrook Solutions’ Family Office Practice recommends doing a Proof of Concept (PoC) to stress test the system with the family’s own data. And, make sure to kick the tires early in the process to ensure the vendor supports all key requirements. Getting to the final stage only to discover that a vendor’s general ledger isn’t truly integrated with their portfolio and partnership accounting, for example, is not time well spent for anyone. 6. Not vetting the vendor – Ensuring the short- and long-term success of any new technology investment is not about selecting the best vendor. It’s about selecting the best vendor for the family. Ask for references.

Talk to clients whose implementations were the most challenging. Find out what the issues were so that the family can learn from that client’s experience. Ask about the company’s strengths. Software solutions are built for specific markets and functions, and each vendor has its strength. Be realistic regarding what the accounting system can and cannot do. Perform due diligence on the financial health of the software vendor, their track record, commitment to the market and approach to product development. 7. Forgetting that it’s not only about the software – A vendor-client relationship is just that – a relationship. It’s not only about the software. It’s about trust, service, support, commitment, dedication, people and addressing challenges when they arise. That’s why selecting a vendor that the family likes and can work with for the long term is one of the most important decisions the family can make. Michael Slemmer, CFA is COO - Americas at FundCount, a provider of integrated accounting and investment management software for family offices, hedge funds, fund administration and private equity firms.

If you’re looking for rounded family office expertise, there’s one place you should look...

here. Find out more at


FINANCIAL MARKETS FROM A RULES BASED PERSPECTIVE Heading into spring the global economic backdrop does lie perkier than it has been in recent times. Following Trump’s election at the latter end of last year as the 45th president of the United States, global growth prospects have taken a tailwind boost into the 1st Quarter of this year. This has been very much evident since the start of the year with the reported improvements in growth, inflation as well as corporate earnings. Such optimism has also been reflected within financial markets. The nine-year equity Bull Run still is very much in play with equities continuing to make new highs, corporate credit spreads be it Investment Grade or more so High Yield are trading through post-crisis levels, and the VIX remains very much anchored at a low range. Does such a situation warrant fears of euphoria, as your investments may have already exceeded their full-year profit targets? Or does one remain hopeful that this rally has steam to continue?

At Eniso Partners we have established and time tested a systematic approach to financial markets that thrives on mitigating the behavioural biases and complexities


of today’s financial markets by deploying rules based models that encompass both the fundamental and psychological aspects of global financial markets. Such an approach to markets does, however, mean that Eniso Partners is not a “forecasting” house. But having said this very few could be counted to have the propensity to accurately forecast the wide array of events that will be taking place in the near future. With the ECB tapering having commenced, a probable FED hike and subsequent continuous increase in real yields, as well the frothing political landscape in European with this year’s elections, one could have many reasons to alter his or hers asset allocation. What can be distinguished from the graph below are the shifts in asset allocation that have taken place within Eniso Partners funds and mandates in recent times. These shifts in asset allocation are as result of both our Fundamental (GFAS) and Psychological model (RAI) having signalled a change in either investor sentiment (RAI) or the global fundamental backdrop (GFAS). Nevertheless, what they have importantly achieved is mitigating the sharp drawdowns that have been witnessed more frequently and sharply since the trough of financial markets in early 2009.

Today, our fundamental model (GFAS) does find itself in a weakened position to where it has lied in the past. The news flow on the consumer and manufacturing

fronts has generally been much better than consensus and signals a further acceleration in the pace of global economic growth. Even so, support for equity markets – especially from the industrial sector – is still far weaker than during the boom phase from January 2005 to December 2006. On top of that, the tailwind that monetary policy has provided to equity markets over the past nine years is close to disappearing. Our fundamental sub-indicator for the monetary environment has fallen to its lowest level since November 2008. Back then, central banks globally had started to flood huge amounts of liquidity into the system in a bid to cushion potential shock waves produced by the Lehman Brothers crash and to safeguard the stability of the global financial system. Both sub-indicators are trembling the foundations of the Bull Run that that has been fairly solid for the past two years. If there is no imminent trend reversal in one of these two sub-indicators, equity markets could be signalled as “unattractive” for the first time since 2009 as far as the fundamental model is concerned, but this is yet to be the case as the model continues to give the green light. Changing tack, from a market psychology viewpoint the US equities market climbed to record highs in early March, driven by a further improvement in investor sentiment. Four of the five sub-indicators of ENISO’s Risk Appetite Indicator rose over the course of the last month. Only the volatile subcomponent “Hedging Demand” signalled a slight dip in risk appetite. Our Risk Appetite Indicator, into which we have integrated several anti-cyclical signals, still fails to confirm that markets have reached a state of euphoria. Although there has been the occasional overbought signal of

late, on balance there is no evidence of irrational exuberance.

Oliver Collins has been managing systematic strategies and funds at ENISO Partners since October 2014.

Oliver Collins - Portfolio Manager Eniso Partners AG Tel +41 (0) 44 286 17 08



ECOSYSTEM FOR FAMILY OFFICES TEMPEST LEGAL SERVICES MONACO Monaco has become a destination for worldwide families, in an ever-changing environment. This is because the Monaco “ecosystem” is well adapted to Family Offices. Why and How? Why? There are several factors: Security (including legal certainty) and Confidentiality being possibly two important incentives for choosing Monaco. Monaco is very international with a wide range of professional and service companies being present: international banks (around 30), asset managers (around 50), insurance brokers, yacht brokers. Regulation and Governance are also key factors in Monaco: banks, asset managers, and insurance brokers are regulated and are subject to strong Governance


and Compliance rules. For instance, in Monaco, banks are regulated by the French regulator (the Autorité de Contrôle Prudentiel et de Résolution); the French Regulator is also closely related to European supervision. Consequently, even if Monaco is not part of the European Union, strong Governance and Compliance rules, inspired by European regulations, apply in Monaco. Data Protection rules, (Monaco implemented its own legislation on Data Protection a number of years ago) such rules being there both to protect businesses and Private Family Offices. Monaco has excellent health care and political security. It is accessibility by air, road and rail/Monaco’s geographical position in the heart of Europe. The Monaco Government actively encourages families to

from Monaco) to be close to decision making and benefit from expertise and advice from international professionals. Single Family Offices can be set up in the form of a company in Monaco, including, more recently, in the form of a limited partnership (SARL) although the preferred route is as a SAM with civil objects. By adopting such corporate form allows the decision makers (who are partners or shareholders in the enterprise) to benefit from limited liability when conducting business on behalf of the families with third parties. Second, more recently, and with the objective of developing the services offered to a wide variety of families, the Principality brought in new legislation on Multi-Family Offices. Interestingly in this legislation, the founders can opt either for a regulated or a nonregulated route, depending on the services rendered to the families (the families being third parties to the Multi-Family Office/MFO business) or a mix of both. In the regulated arena, the MFO officers can conduct activities in respect of giving financial advice, and act as brokers for the families.

set up in Monaco to conduct Family Office business. All these factors contribute to why Family Offices operate from Monaco. How ? When talking about “Family Offices”, two separate situations may arise in Monaco. First, and more traditionally, Single Family Offices may be set up in Monaco, and offer solutions for families across generations to manage their affairs. As an example, it is possible to set up a Monaco Investment Fund, dedicated to several members of the families, managed from Monaco by regulated asset managers. Such a solution, for instance, allows the families (and those who dictate the governance of the family business

In that case, the MFO officers are subject to the same organisational as well as prudential rules as other asset managers in Monaco and are licensed and controlled by the competent local Regulator (Commission de Contrôle des Activités Financières/ CCAF). In the non-regulated space, the MFO officers, who must provide professional guarantees (expertise, professional qualifications and experience according to Law), may offer a wide range of services in a variety of areas (wealth and tax management for instance). An MFO must demonstrate strong governance rules, including prudential rules, since the MFO must be incorporated as a limited liability company (SAM). All these evolutions in Monaco are promising for the future development, in a safe environment, for Family Offices whether Single or Multi.

Nathalie TANZI & William EASUN Managing Partners, Tempest Legal Services Monaco

Photo credit MY.PRESSCLUB



The Wealth of HNWIs with Russian tax residence has been under pressure since 2014: they had to tackle ruble drop, sanctions, rapidly diminished bank deposit rates together with changes in tax, anti-money laundering and foreign currency legislation. Incredible as it may seem, there appears to be a universal remedy against all of the above-mentioned issues, which is called a unit-linked life bond. Let’s see how it works. A unit-linked life policy or bond is a policy opened by in most cases the offshore company that enables a policyholder to invest in a wide variety of instruments within the policy like bonds, equities, ETFs, mutual and hedge funds, structured and loan notes, etc. In case of the policyholder’s death, the current value of the policy multiplied by 101-105% (depending on the type of policy, the term, the premium, etc.) is paid to nominated beneficiaries. One could redeem any amount from the policy provided that they leave a minimum amount in cash in the policy, and could make any top-up if they wish. Some life bond providers let their clients use any instruments they wish starting from as little as 20-30K USD, whereas others may require to transfer minimum 250K USD into the policy to get access to the whole range of products available in the market. Such life bond providers include Hansard, Custodian Life, Generali (but they won’t receive any new clients from Russia from May 2015), Investors Trust, etc. Such scheme of investing might be a bit more expensive than trading accounts, but in fact they appear to be ideal for foreign investments in other currencies than RUB for tax residents of Russia. And here is why. Tax optimisation. First of all, due to sanctions and oil prices drop, the ruble has fallen from $1/RUB 34 at the beginning of January 2014 to nearly $1/RUB 60 in February 2017, which is why most HNWIs converted all or the bulk of their rubles into US dollars either in


Natalia Smirnova

CEO, Personal Advisor ltd 2014 or 2015. In the meantime, the Central Bank of Russia started to decrease the interest rate in 2015, and bank deposit rates for any foreign currency (USD, EUR, etc.) fell to 1% in 2016, which made them inefficient to protect wealth from inflation. As a result, HNWIs switched to alternative instruments in foreign currencies like bonds to substitute bank deposits. However, starting from 2014 the Ministry of Finance issued a letter stating that the income tax on any profit from investments in a currency other than ruble should be calculated as follows: the price at which the investment was bought should be converted into rubles at the exchange rate of the Central Bank on the dealing day, whereas the price at which the investment was sold should also be converted into rubles at the exchange rate of that date. As such, if one invests in a mutual fund USD 1,000,000 when $1=RUB 50, and sells all his holdings at the price of USD 1,200,000 when $1

= RUB 70, one should pay income tax at the rate of 13%, and the taxable income will be calculated like this: USD 1,200,000*70 – USD 1,000,000*50 = RUB 34,000,000 (and not USD 1,200,000 – USD 1,000,000 converted into RUB at the exchange rate of the day when the fund was sold). This rule is now applied to any investment in a foreign currency for taxresidents of Russia, which makes such investments inefficient due to the instability of ruble. However there is an exception to this rule – according to the article # 213 of the Tax Code of Russia, any income from a life insurance policy is taxable at the rate of 13% if it exceeds annual interest rate set by the Central Bank of Russia (10% as per March 2017). This helps investors diminish their taxes if they are investing in a foreign currency via a life policy. Access to a wide variety of investment opportunities with no declaration and reporting. Even if the exchange rate remains stable, HNWIs will be facing other difficulties while investing in a foreign currency. In particular, there are few bonds and stocks in USD available in the Russian market, which makes it impossible to create a well-diversified portfolio for any HNWI. As a result, one should open a trading account abroad to get access to NYSE and other markets. According to anti-money laundering and foreign currency legislation , if one opens a bank account abroad – he would have to inform the Tax Authorities in Russia about that within 1 month and then start sending them an annual report on inflows and outflows within this account together with annual tax declaration, which would be timeconsuming and inappropriate for tax-optimization purposes. If one opens a trading account abroad – he will have to send an annual tax declaration anyway, since Russia will be joining OECD from September 2018, so the Russian Tax Authorities will get access to information about every financial account opened by or in favour of the Russian tax resident. If any HNWI decides to use his foreign company for foreign investments, this will also be an inefficient solution for tax-optimization. Starting from 2015 all owners

and beneficiaries of foreign companies that are tax residents in Russia are to inform the tax authorities about these facts and pay 13% tax on the annual net profit of their foreign companies if it exceeds RUB 10,000,000 (around USD 167,000 in March 2017). Given the fact that Russia will be part of OECD from 2018, the Tax Authorities will inevitably get access to the information about beneficiaries of these companies’ bank accounts. However, investments within a life policy don’t require neither annual reporting nor annual declaration since income within the policy becomes taxable when redeemed from the policy (if it exceeds the premium amount) or when the policy matures. In addition, all holdings with the policy have a nominal holder (an insurance company), whereas a policyholder remains the sole beneficiary, which makes it impossible to reach the policyholder for the Tax Authorities since the official holder of all investments is not a tax resident of Russia. Confidentiality and protection. The fact that a foreign life insurance company remains a nominal holder of all assets within the policy protects them from potential suspension should further sanctions against Russian residents continue since such investments within foreign life insurance companies tend to be offshore, and offshore jurisdictions would hardly obey any sanctions. On top of that, life policy also protects all holdings from a divorce and potential collection since life policy plays the role of a trust for all holding within a policy. As a result, investments via a unit-linked policy instead of a traditional asset management strategy is a more beneficial solution for the estate planning for HNWIs with tax residence in Russia. It protects foreign assets from the collection, allows his family to have immediate access to the funds in case of the client’s death. In addition, the client will be able to avoid 13% income tax on the profit of his foreign investments as well as obligatory reporting and submitting a tax declaration as well. The only thing left is to choose an appropriate life bond provider.


KEEPING WEALTH IN THE FAMILY What do Abraham Lincoln, Pablo Picasso, Jimi Hendrix and Stieg Larsson have in common? They all died intestate. Despite hard-working, and in some cases hard-living, careers, none had put in place measures to protect their accumulated wealth and ensure it was passed on to those they cared about. Their stories highlight the often-disastrous impact of not having a comprehensive financial plan in place. Not only can it mean that accumulated family wealth is dissipated, but it can also cause irreparable family rifts and cause those who should have been beneficiaries to miss out. Picasso left a fortune in artwork, homes, gold, cash and bonds, but had done little lifetime planning and had not written a Will. The battle to settle his estate took six years and cost $30 million. The fight over Jimi Hendrix’s estate continued for more than 30 years after his death, and the royalties that kept accruing caused further complications. Perhaps the most tragic case is that of Stieg Larsson, author of The Girl with the Dragon Tattoo. He had lived with his partner, Eva Gabrielsson, for 32 years. Having failed to make arrangements during his lifetime to provide for her in the event of his death, Swedish law dictated that his estate should be divided between his estranged father and brother. Similar rules apply in the UK, where unmarried couples have no absolute rights to inherit if their partner dies intestate. More than a Will: the importance of advice A Will alone may not be enough to protect assets for future generations; detailed succession planning is also essential. That includes planning how you want your assets to be used, determining who you want to benefit from them - and putting in place structures to protect your wealth and ensure these goals can be achieved. Most of us would like the wealth we have created to benefit future generations of the family, not just immediate children; perhaps by providing funds for education, a deposit for a first home, or capital to establish a new business. No matter how wealthy you


Alexandra Loydon Private Client Division St James’s Place Wealth Management

are, achieving these goals is not guaranteed without careful planning. And there are a number of risks that can prevent those plans becoming a reality. The Chinese say that the first generation works hard to build family wealth, the second generation reaps the benefit and the third generation squanders it. Nowadays, increased materialism has speeded up the process, and wealth is often dissipated by the second generation. But spending is not the only risk: tax, divorce, and poor financial decisions by beneficiaries can also all have a big impact. Inheritance Tax, levied at 40% over the nil-rate band, is a major threat to any legacy for loved ones. (The nil-rate band is currently set at ÂŁ325,000, although this will be increased from April 2017 where certain criteria are met.) But the divorce of beneficiaries can be more damaging, and may mean the loss of half their wealth. You can

protect inherited wealth from divorce settlements, but it needs careful planning and expert advice. Without this, divorce can significantly deplete family wealth and may force the sale of assets that have been in the family for generations. Subsequent marriages can also introduce new members to the family- such as stepchildren and step-grandchildren - who may also need to be provided for. Other threats might be, for example, a family business falling on hard times, or the next generation mismanaging an inheritance. So it is essential to build a flexible plan for the future, to ensure that assets are preserved and protected until the next generation is old enough and wise enough to manage the family estate themselves. Structured Solutions Wealth should provide reassurance, not cause worry. With careful planning, advice and the right Will, you can not only minimise taxation through available allowances, exemptions and reliefs, but also ensure

the protection of funds to benefit a family for decades to come. Trusts still play a major role in succession planning, although they must be properly structured and need not be the only consideration. There are other investment solutions and planning methods available. Every day St. James’s Place works with families with differing needs, but one thing most families share is the desire to do the best for themselves and their successors. The impact of taking no action can be devastating. So take advice, make a plan and leave a legacy. Don’t let your family wealth fall into the hands of those you have not chosen. The levels and bases of taxation, and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. Will writing involves the referral to a service that is separate and distinct to those offered by St. James’s Place. Wills and trusts are not regulated by the Financial Conduct Authority.


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THE CLARITY HONDA FUEL CELL HAVE A RANGE OF 589 KM. EPA UNITED STATES CLARITY HONDA FUEL CELLS GIVE A RANGE OF 589km The Clarity Fuel Cell offers a range of 589 km and a fuel consumption of 28.9 equivalent KME / l according to the parameters of the Environmental Protection Agency (EPA) of the United States. In Europe, Honda will market the Clarity Fuel Cell in Denmark and the UK as part of HyFIVE program.The Clarity Fuel Cell reaches those European markets in late 2016. The Clarity Fuel Cell Electric Vehicle fuel cell Honda, was listed autonomy of 589 kilometres and classification of fuel consumption of 28.9 KME / l equivalent to gasoline in combined way [1] of the Environmental Protection Agency (EPA) of theUnited States. These figures represent the best classification among electric vehicles without combustion engine, including fuel cell vehicles and fully electric vehicles in the United States. The Clarity Fuel Cell, which incorporates the most advanced technologies of Honda, is the first model with bodywork production sedan in the world powered by a system of fuel cell that houses all power unit in the space normally occupy the engine and transmission, under the hood. Honda has reduced the size of the fuel cell by 33%, while it has increased the power density by 60% compared with the Honda FCX Clarity. Thanks to block the fuel cell more compact and integrated drivetrain, the Honda Clarity Fuel Cell is able to offer a more spacious cabin with seating for five occupants. In Europe, Honda introduced the Clarity Fuel Cell in


a limited number of markets through HyFIVE program to promote the development, use and viability of hydrogen refuelling infrastructure. Together with its industry partners, Honda aims to collect user experiences with real-world fuel cell vehicles and the use of hydrogen fueling points. The first units of Clarity Fuel Cell euopeos reach these markets before the end of the year. Honda is the world’s largest manufacturer of internal combustion engines, the leader in manufacturing and marketing of motorcycles and eighth automaker in the world. In addition, it is the first automotive company to fully develop a private jet, the HondaJet sector and is the architect of the most advanced humanoid robot in the world, ASIMO, which makes it the leader in mobility company. With 40 production sites in 17 countries, In Spain, Honda concentrates its activities in Mogoda (Barcelona), where it employs 266 people. The car division of Honda Motor Europe Spain has a dealer network consisting of 78 outlets. Currently, Honda distributes six models in the Spanish market: Jazz, 5-door Civic, Civic Tourer, Civic Type R, HR-V and CR-V.

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Neil Willis

Rycal Group LTD Alternatives assets have become an important investment consideration in the hunt for income. If we look at periods of low-interest rates, such as in the current environment, alternatives can offer more attractive yields than traditional investments. Today, as allocations continue to increase in global alternative assets, PwC has predicted that the market for alternatives will increase to $15.3 trillion by the year 2020. So what’s the reason for this increase and why focus on real estate? As you’ll find, alternatives come in many forms, real estate being one of them. Investor’s see it as one of the more popular alternative asset classes to invest in because of its stability and consistency over the long-term. For many years now I have helped investors to achieve their short, medium and long-term investment goals through focusing


on direct property investments and alternative property funds. While investors have a wide variety of needs, they all often strive for the same thing, to ensure the financial security and well-being of their family! For instance, I see clients all the time that are interested in saving for a house deposit in the short term, and then saving for University fees for their children in the medium term and of course planning for a comfortable retirement in the long term. The latter two goals, and particularly retirement planning require a combination of capital growth followed by income generation. Further, in today’s world where traditional working patterns no longer seem to be the norm, many clients simply strive towards `financial independence` as quickly as possible. They want dependable monthly income (e.g. having enough investments and assets to generate income to live) without necessarily having to work a 9 to 5. Depending on an investor’s goals and timing, there are several strategies clients should consider: Direct Property Investments The Residential Buy to Let and Commercial Property market is for the long-term investor -- and ultimately the goal with these investments is to provide passive income. Below I’ve broken down the reasons to consider Residential Buy to Let versus Commercial Property:

Residential Buy to Let: The Residential Buy to Let market is still a huge marketplace in the United Kingdom despite recent tax changes making it less attractive than it previously was. Income gained from a rental property is long-term and consistent. Today’s lenders will still readily lend monies to invest in these types of properties, and rental demand continues to stay high. There can be disadvantages to consider with buy to let, including having to sell the asset to realise capital repayment and the potential costs and void rental periods significantly reducing yield. There is also the chance you end up with a `nightmare` tenant. If you do end up in a situation where a tenant is not paying the rent but staying in the property, and potentially damaging the property, there can be a long and costly legal process to resolve the situation, with no guarantee of costs being recovered. Commercial property: Casual investors tend to and should stay away from this type of property investment as the property prices can be much higher and rental returns lower. However, the advantage of commercial property investment is that rental contracts tend to be much longer, often with costs fully covered by the tenant. It can be more difficult to finance these properties and be subject to higher interest rates. Over the longterm, the asset eventually needs to be sold to realise capital.

However, as a long-term home for your money, without needing to provide day to day help to your tenants, commercial property can still work very well. Property development It may have seemed at one point in the late 90s that every third person was a property developer. However, with fewer houses around in need of renovation, following the upsurge in competition from amateur developers in recent years, it has become much more the preserve of professional firms. Significant profit can be made investing in development, however, as banks are now much less willing to lend money to customers, significant funds may be required from the investor to move forward. During the planning and development process, as an investor/developer, the individual should have a great level of control over expenditure to ensure that the profit margin isn’t eroded and that the finished price is realistic. The property is only worth what a buyer is willing to pay, and that is often capped by the upper values of properties in the same area. All too often amateur developers see their expected profit reduced, as their finished sale cost has been over ambitious. Property development is typically used for capital growth over the period of development. It can then move into income generation if the developer decides to retain and rent part of the development. All the above direct property investments are subject to market fluctuations. Residential and property prices are now looking very high in certain parts of the UK compared to average incomes, and while demand is still high, we may see a correction happen in the near future. Real Estate Funds Property funds are an alternative to holding direct property that is still asset-backed but often provides significantly more liquidity. Funds can also diversify investments away from the UK market to other areas, also providing diversification of currency. These funds can provide both income generation and capital growth, usually as a passive investment. Clients are not actively involved in the management of the properties that the funds own, but they can reap the benefits of the return on investment. One area to be careful of with property funds is looking at exit strategies. Traditional property funds tend to have openended timescales for investment. The fund simply buys

land and property that is expected to increase in value, and usually keeps a margin available in liquid funds to cover redemptions. From my experience of this, when the fund does well, proportionally more clients want to cash in their investments and take the benefits. This can often lead to the demand for redemptions exceeding the amount allocated into liquid funds. We have seen this recently in a large way with Student Accommodation funds. The net result is that restrictions are placed on the fund while assets are sold to allow for the increased redemptions. This provides worry and drives the fund price back down, not to mention that the fund is forced to sell assets rather than choosing its own time frame to do so. A far from ideal situation for clients! There is now a new variety of property funds that provide fixed exit strategies by planning to buy and sell assets. These can, if well managed, provide a great alternative to more established funds. In the past, we have worked successfully with the Carlton James Commercial Real Estate Fund, which allows investors to move into a fund that finances USA-based commercial hospitality property. This type of investment has worked well through careful management of the underlying risks, and through having a fixed exit strategy from the fund manager to provide a return of funds to investors in a timely manner. You can find out more about Carlton James offerings at So what is best? Well, of course, there is no right or wrong answer. Diversification is always the answer, across property types, areas and even countries using property funds. Using the above investments, you can help your client structure a new portfolio to achieve their financial goals, and review an existing portfolio to make sure the capital invested is working as hard as possible for them. Neil Willis is Managing Director at Rycal Group LTD, a US- and UK-based property advisory firm.



TAX PLANNING IN THE POST-BEPS ERA “BEPS” stands for Base Erosion and Profit Shifting, and refers to tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is a little or no economic activity. To address tax avoidance, the OECD/G20 developed the BEPS Project, consisting of 15 actions, which equip governments with domestic and international instruments to ensure that profits are taxed where economic activities generating the profits are performed and where the value is created (see For example, assume that country X and country Y do not have a tax treaty, but both have its own tax treaty with country Z. One corporation can be created in country Z to take advantage of the tax treaties benefits. Well, it is clear that the only goal of the created corporate is to benefit from the treaties. In general, those corporations do not have economic substance, and the OECD BEPS Project intends to address exactly those kind of circumstances, among others, of course. According to the OECD 2015 Final Reports (Information Brief), “BEPS results in a loss of revenue for governments that could otherwise be invested to support resilient and balanced growth. Research undertaken since 2013 confirms the potential magnitude of the BEPS problem, with estimates indicating annual losses of anywhere from 4-10% of global corporate income tax (CIT) revenues, i.e. USD 100 to 240 billion annually. In developing countries, where reliance on corporate tax as a source of revenue is generally higher than in developed countries, the potential impacts are particularly stark”. It is clear that the main targets of the BEPS Project are those Global Multinational Enterprises whose legal and tax structures do not reflect the underlying economic reality. Nonetheless, we can speculate if, in some way, it will affect family offices tax planning. Well, since many family offices are active in global private equity investments, it can be possible to have


Dalton Luiz Dallazem

PERIN & DALLAZEM some impacts connected to the so-called “hybrid mismatch arrangements”. “Hybrid mismatches are cross-border arrangements that take advantage of differences in the tax treatment of financial instruments, asset transfers and entities to achieve “double non-taxation” or long-term deferral outcomes which may not have been intended by either country” (see Among those hybrid instruments frequently employed by private equity investments, we find, for example, the “convertible preferred equity certificates” and “preferred equity certificates.” They could fit into the OECD definition of an “an instrument that is considered a debt in one country and equity in another so that a payment under the instrument is deductible when it is paid but is treated as a taxexempt dividend in the country of receipt.” Therefore, the “interest deductions on debt instruments structures” may be susceptible to an extensive review under the future new rules. It is also likely to have effects on interest deductions among related parties (financing costs) because the OECD proposes limitations. The idea is to have

a fixed ratio rule, “which allows an entity to deduct net interest expense up to a benchmark net interest/ EBITDA ratio, within a corridor of 10%-30%, and an optional group ratio rule which allows an entity to deduct net interest expense up to its group’s net interest/EBITDA ratio, where this is higher than the benchmark fixed ratio”. One of the most significant approaches of the BEPS Project rests on transfer pricing rules. It is important that the fund managers check if it is the case to review the applicable circumstances. The OECD work “has focused on strengthening the guidance on applying the arm’s length principle to ensure outcomes where profits are aligned with the value created through underlying economic activities.” This work has focused on several key areas, such as transactions involving intangibles, since misallocation of the profits generated by valuable intangibles has contributed to BEPS; contractual allocation of risks, and the resulting allocation of profits to those risks, which may not correspond with the activities actually carried out; the level of returns to funding provided by a capital-

rich MNE group member, where those returns do not correspond to the level of activity undertaken by the funding company; recharacterization of transactions which are not commercially rational; and service fees and commodity transactions (see It is undeniable the importance of the BEPS Project. On the other hand, it is also important to distinguish between tax avoidance and tax evasion, or between tax avoidance and tax planning. Defining clear boundaries is always a good guidance for both the taxpayers and the tax authorities, avoiding gray areas where the sailing is not safe.



IMPACT ON THE FINANCIAL SECTOR by Douglas Azar CEO of Wealthinitiatve Digital innovation has impacted most of the financial sector in the past ten years and has recently gained rapid pace. Whereas retail banking and consumer finance have been “early adopter”, the wealth management space has been on the sideline, applying the ‘not so efficient’ wait-andsee strategy. Except for standard online banking portal, private banks were not investing heavily on digitalization. The players could afford to wait for part due to their older client base, sustained return on equity and high barrier to entry. The wakeup call has arrived, mainly driven by the new generation of clients embracing technologies and social media, forcing the institutions to rethink their value proposition. The three main areas witnessing the most appeal for the digital age are enhancing client relationship, reducing the cost of the middle and back office and smoothening risk and compliance tasks. The main question that arises for most wealth management institutions is whether to focus on the external, client-facing (front-office) or internal (middle and back-office) type of initiative. It is interesting to point out that two third of high net worth individuals (HNWIs) are now using online mobile banking but only a quarter


of wealth managers currently offer digital channels beyond the usual email. According to a survey, 82% of high-net-worth individuals in the Asia-Pacific region expect their wealth management relationship to be conducted entirely or mostly through digital channels, while 83% of them said that they are far more likely to leave wealth management firms that cannot offer an integrated digital and direct channel experience.

on impact investing. The next theme that is emerging focuses on the investment of passion such as art, classic cars, vintage watches, rare stamps or any other sought-after collectables. Passion investments are also often referred to as a store of value in times of financial stress. They also have the particular characteristic of being an emotional asset on top of being a potentially lucrative investment.

New private banking service delivery model are empowering clients with round-the-clock access to comprehensive information about their accounts, market insights and intelligence personalised according to their portfolio. The next trend is the rise of digital platform used as market place helping wealth management institutions to create synergies among their client base, unlocking new opportunities. Regarding family offices, a few trends are shaping the industry on top of the fact that the number of family offices around the globe is increasing at a rapid pace mirroring the higher number of the ultra wealthy. To mention only two in the investment space, there is a tendency to get exposure to direct investment versus the fund approach as well as a greater focus

BIO: Douglas Azar is the founder and CEO of Wealth initiative. He has 12 years’ experience in Banking in various locations (U.S.A, Middle East, Switzerland) including eight years in Private Banking focusing on investment advisory. He also has extensive knowledge in “art investment” and wrote articles in newspapers on the subject. He is a CAIA charter, holder.

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LESSONS LEARNED FROM INCORPORATING ARTIFICIAL INTELLIGENCE-BASED FUNDS TO FAMILY OFFICE PORTFOLIOS by Andres Bagnasco Andres Bagnasco is a post-graduate professor of finance, and Director of the Investment Management Programme at the Uruguayan Catholic University. He has held several positions such as Derivatives Marketmaker, Risk Manager, Quant Researcher and Trader, Data Scientist and Portfolio Manager Artificial Intelligence (AI) applied to alpha generation is without any doubts the most disruptive innovation in Finance in the last decade. Even though algorithmic trading dates back to the 70’s, technological advances such as Cloud Computing, GPUs and Big Data techniques have shaped forever markets and are here to stay. Several AI-based hedge funds currently top fund rankings, exceeding in risk-adjusted terms their human counterparts. Others such as Renaissance Technologies’ Medallion HFT Fund, has proved to weather over 35 years with average yearly returns in the mid-thirties and a breath-taking Sharpe ratio close to five. Low correlation with traditional assets and the highest risk-adjusted performance are the main drivers for considering allocation in AI-based funds. Undoubtedly markets are nowadays more efficient than ever before. Thus it is increasingly harder to consistently beat the market with active management strategies given the highly competitive environment. Access to technology, open source tools and knowledge has derived into a new breed of AI-


based funds, often led by former Silicon Valley Data Scientists and Quants. Alternative Investment analysts with backgrounds in Economics, MBAs, CFA and even CAIA charter holders are unfortunately not qualified enough in order to properly screen the most suitable funds from a risk management perspective. A couple of real-life examples will shed light on some of the problems faced by family office analysts and portfolio managers when analysing these very specific type of funds. I used to work as a buy side Hedge Fund quant, developed some FX interbank arbitrage-like strategies. One of such strategies was in production for about 14 months with excellent results, a Sharpe ratio in the order of four, until it was suddenly arbitraged out by the market. What happened? Backtesting, stress-testing and a good track record are necessary conditions for the assessment of a quantitative trading strategy/fund, however the ease of information access and pure reliance on execution speed typically reduces the shelf life of simple “low hanging fruit strategies”. Once discovered

by other participants or after the incorporation of new technologies, former money-making strategies cease to generate further profits. Lesson learned: Paraphrasing Nobel Laureate’s Eugene Fama’s words; “markets efficiency is in constant increase”. Several years ago, while working as a Fund of Hedge Funds analyst, we used to perform the regular due diligence/risk audits on a target fund which was using Machine Learning algorithms in order to trade US Futures, based on certain automated COT (Commitment of Traders) report feeds the fund subscribed to. Risk-adjusted metrics were pretty solid, operationally the firm’s processes, people and systems were robust and passed with fireworks our firm’s toughest acid tests regularly considered before allocating funds to it. My boss, the Portfolio Manager, was eager to allocate funds to that Hedge Fund, and we did so. I just had one objection to it, most of the fund’s alpha was derived from a 3rd party data feed vendor, who was also licensing such feed to several other market participants. To me, it was a matter of time and traded volume,

for the strategy to stop working. Most of the profits were obtained from thinly traded instruments as opposed to the most liquid ones on the considered exchanges. Time confirmed my hypothesis, the strategy stopped working, and the fund had to be liquidated. During the post-allocation monitoring phase, we requested one meeting with the fund as well as their data feed provider. We presented them an early forensic microstructure analysis pointing some scalability issues we observed as there were early signs of trading performance decay. The fund manager was extremely concerned about it. Their feed provider, despite being quite polite and approachable, was obviously not willing to commit any hard limit to the distribution of their product to other firms. That meeting marked the end of our allocation to such fund.Eight months after liquidating our stake, the death of such strategy was confirmed by a drop in the fund’s AUM, given the incompatibility of the vendor’s data feed sales expansion plan vs the fund overreliance on such source of alpha. In a zero-sum game, not everyone can own the secret sauce and still make money. Lesson learned: In today’s highly competitive arena, being fast, smart or different is not enough; fund managers need to faster, smarter and unique vs. the rest of the market participants in order to stay in business. On another page, a BVI-based hedge fund manager trading European stocks once contacted me as they had some concerns about fund performance degradation. Apparently, it was mainly attributable to seemingly higher trade execution costs. I carefully designed some experiments and statistical tests in order to determine the possible reasons behind it. There were three main hypotheses, namely: a) Market impact/scalability issues b) Stolen IP perhaps within the fund or former employees leaving with code or ideas c) Fund replication (i.e. some service provider such as primer broker, data-center personnel, either frontrunning or replicating trades for their own benefit). After the experiments, we were able to statistically determine with a probability of 99.97% that fund replication was the undisputed responsible explaining the fund underperformance. Needless to say the fund no longer executed trades through the same service providers after our findings, returning to happy days.

The fund management and their legal advisors wanted to initiate actions against their service providers. Unfortunately, our research was not conclusive enough in order to precisely locate the exact responsible(s) in order to either sue them or file a regulatory demand against them. The presence of an execution broker, broker employees, data centre personnel, connectivity providers, as well as the lack of additional data made the task of individualising the end responsible simply impossible. Lesson learned: Even the most secret black boxes deserve thorough and continuous TCA monitoring (Transaction Cost Analysis), not only before but all along the post-allocation phase. The research process by which a fund’s strategy has been developed is crucial for ensuring the scalability and shelf life of the alpha-generation process. As a Quant, Big Data Scientist and Algorithmic Trading Postgraduate Professor I have been not only trusted, but lucky enough in having the opportunity to carefully learn and dissect many fund strategies in the search for their Achille’s heel. Deep Learning Neural Network structures, training algorithms, feature engineering building process, cost functions or analysing concepts such as precision/recall charts has proved to give us remarkable insights about its expected strategy shelf life. Most of these concepts as well as being fluent with technologies such as Google’s TensorFlow, XGBoost,, Spark or Apache Storm are technologies simply out of reach for most CFAs, MBAs and Alternative Investment Analysis. Sorting Alternative Investment databases by Sharpe or Sortino ratios as well as asking standard operational due diligence questions is mandatory, nowadays it is no longer sufficient in order to select the best allocations for your Family Office portfolio. Analysts and Risk Managers need to go one step beyond the underlying fund by modelling what the fund manager may not have planned for, even if it is a black box from the analyst’s standpoint. Nowadays it is mandatory to engage expert Data Scientists consultants in the due diligence and risk audit process before allocations. Your family office analysts truly have the required knowledge in order to address these issues? Remember the old trading adage: What you don’t know may kill you.


LITIGATION FINANCE ATTRACTING FAMILY OFFICE INVESTORS In a world of over-inflated asset prices driven by nearfree debt, some investors are on the edge of their seats with respect to what the future holds for their portfolios. This tension has resulted in investors looking toward more esoteric asset classes which are not correlated to the financial markets. As an example, university endowments, who have traditionally been forward looking investors in the alternative asset sector, are looking at the maturity of the private equity space and reducing their allocations therein in favour of investing in non-traditional alternative asset classes such as insurance driven strategies, intellectual property royalties and litigation finance. The interest in the litigation finance asset class is twofold: non-correlation and inefficiency. As you can imagine, the outcome of a piece of litigation is idiosyncratic to the litigation itself and is generally not influenced by other external factors and hence the value is not dependent on external factors or the performance of the financial markets. Accordingly, the asset class is viewed as one of the least correlated asset classes available to investors. “ Average annual increase in tort costs from 1951 – 2009 was 8.7% ” The Evolution of Litigation & Risk Management: a 50year Retrospective, Chartis 2011 The asset class is also relatively inefficient (i.e. demand is greater than supply) because the opportunity to invest in litigation finance only presented itself in the last two decades, depending on the jurisdiction. Prior to that, in most English common law jurisdictions, old common law doctrines of champerty and maintenance prevented a third party from profiting from another party’s litigation. However, as justice systems grapple with increasing litigation costs, the global trend has been toward improving access to justice through the use of thirdparty litigation finance.


Edward Truant

Balmoral Wood Litigation Finance Litigation Finance Basics In essence, litigation finance involves veteran litigators (typically former litigation partners at large law firms), who work for the litigation finance manager and underwrite an investment in a particular piece of litigation. Their underwriting process typically focuses on the following case attributes: (i) merits of the plaintiff’s case, (ii) plaintiff’s legal representation, (iii) defendant’s settlement history, (iv) defendant’s legal representation, (v) jurisdictional considerations, and (vi) collection risk. Once the litigation funder determines that the probability-weighted outcome of a piece of litigation is compelling, the litigation funder provides a commitment (non-recourse in nature) to fund the litigation, typically pursuant to funding milestones, in exchange for a share of the ultimate proceeds derived from settlement or a court/arbitration award. The asset class has been described as an ‘option on an instalment plan’ because

funds are slowly invested, in ‘installments’, to support the case. The litigation funder can react as more information is received about the case and ultimately is able to withdraw from the case if the situation changes from that which was originally underwritten. This level of optionality has made the asset class attractive to hedge fund managers. “Litigation funding is the life-blood of the justice system. It helps maintain our society as an inclusive one.” Lord Neuberger, President of the U.K. Supreme Court

Australia was an early adopter of litigation finance, followed by the UK and USA. Today, there are several other countries whose judiciary supports the use of litigation finance and the global trend is toward increasing the use of litigation finance, although it remains a niche asset class in terms of its overall size. Many of the cases tend to be “David vs. Goliath” in nature, but the industry is evolving in terms of its application to the types and size of cases. A recent case brought against Caterpiller Corporation by Miller UK Ltd. is a prime example of where litigation finance is used and how it benefits individuals and corporations. Miller UK Ltd. was a long-time supplier of Caterpiller for a quick decoupling device they had invented. Caterpiller management decided to develop their own device and end the long-standing supply arrangement with Miller. When Miller viewed the competing products developed and marketed by Caterpiller, they quickly determined Caterpillar had stolen Miller’s design ideas and commenced litigation against Caterpillar. The litigation took its toll on the Miller family members, both financially and emotionally. Ultimately, the Miller family turned to a US litigation finance company who provided the capital necessary to pursue the case in US federal courts. The courts ultimately ruled in favour of Miller with a US$74 million judgement (which will reportedly increase to close to $100MM when interest is applied). Subsequent to the judgement, Miller UK Ltd. has re-hired many of the employees it was forced to

lay-off and the Miller family has repaid personal debts that they had assumed to pursue the litigation. “Demand for outside funding outstrips supply. Returns are impressive.” The Economist, April 2013 Challenges to Investing in the Sector While the asset class does present the opportunity to generate impressive returns. There are challenges to investing in the asset class in the form of manager access & selection and portfolio diversification. Given that the asset class is in the early stages of its life cycle and there are barriers to entry associated with entering the asset class, there are a relatively small number of managers with whom to invest. Accordingly, getting access to the best-in-class managers requires an investor to dedicate time and resources to finding, diligence and negotiating with these managers. The second issue and perhaps most important aspect to successfully investing in the asset class is diversification. One of the difficulties litigation financiers have is proper portfolio construction because, different from many other asset classes, litigation financiers do not know exactly how much of their committed capital will get deployed until the capital is required. Accordingly, portfolios, when viewed on a capital deployed basis, can end up being very concentrated. Were it not for the potential for binary outcomes in the asset class, this would be acceptable, but the quasi-binary nature of the asset class means that diversification is more important than traditional private equity asset classes. The Way Forward As with any asset class, manager selection and diligence is critical to investing in the asset class. Specific to this asset class, diversification should be central to your investment decision-making process. If the appropriate portfolio design considerations are made, the asset class looks promising to deliver exceptional performance! Edward Truant is a principal of Balmoral Wood Litigation Finance, a litigation finance fund manager based in Toronto, Canada. The author can be reached at



FALLING IN LOVE WITH THE AMALFI COAST 7 ESSENTIAL PLACES TO VISIT ON YOUR NEXT CHARTER VACATION IN ITALY While the French Riviera has the greatest concentration of superyachts, the Amalfi coast is a strong competitor, able to boast some of Europe’s most important historical sites, impressive restaurants and luxury brands all within the same stretch of unique scenic coast. Whether you and your family are looking to visit only a couple destinations or try to see it all within a week-long charter, the close proximity of these 7 destinations often visited by the rich and famous, provides the fantastic advantage of falling asleep in one town and waking up the next day to a strikingly different locale.

course, no trip would be complete without sampling pizza at its birthplace. As another art form, the cuisine of Italy is ever-evolving, and there is far more than the traditional image of pasta and ice cream to discover. Palazzo Petrucci is a Michelin Starred restaurant with a menu as impressive as the views across the harbour, where the city lives under the shadow of Mount Vesuvius. Catering to allergies and different dietary requirements, Palazzo Petrucci offers the sophisticated taste of Italy and a memorable evening along the Coast.

Naples Bustling Naples is a magnificent metropolis of towering apartment buildings, narrow alleyways and cobblestone streets. As one of the world’s longest inhabited cities, there is a rich heritage to explore, with castles, museums and an 18th Century opera theatre scattered across the urban setting. And of

The oldest continuously active venue for public theatre anywhere in the world, Teatro di San Carlo is an essential stop for culture lovers who want to experience opera (running from January until May) or ballet (April until June) as it was originally intended. Before heading to Pompeii, tourists can visit Mount Vesuvius to see the geological power still seething


from the dormant volcano. An awesome natural sight looming over Naples and distinctive landscape visible even from the island of Capri, the volcano could one day change the skyline of the Amalfi Coast forever. Pompeii The famous site of Pompeii is only a short journey from Naples, making this UNESCO World Heritage Site an easy stop on your trip. When the settlement was rediscovered and excavated, archaeologists found empty pockets within the ash: by pouring plaster within; the casts revealed the final moments of the town folk. A selection of these casts is still on display today. As an affluent settlement Pompeii is filled with artistic details: whether taking in the mosaics of Casa del Poeta Tragico, the statues in the gardens of Casa di Ottavio Quartione or the remains of the Forum, the ruins make for a tranquil visit, if an unnerving testament to the power of nature. Positano Positano is much like a miniature Amalfi: a laidback atmosphere pervades the streets, and historic buildings fill your view in every direction. What differentiates this town is a single road for motorised vehicles, reducing the noise within the town and creating a far more pedestrian-friendly environment. Wisteria vines arch over the steps leading up from the sea into the hills and add to the charm of a town

where browsing art galleries, cafes, unique shops and snapping photographs are the ideal pastimes. Sorrento For travellers who want to see as much of the Amalfi coast without travelling too far, Sorrento is ideally placed for visiting Capri, as well as Pompeii and Amalfi. The town itself has a population of fewer than 20,000, and in the summer months, this can double from an influx of tourists looking to escape everyday pressures and enjoy nothing more than a simpler way of life. Down the back streets, visitors will find a rich medley of architectural styles and sustained cultural traditions, including wall shrines to local heroes as well as Italy’s most popular saint, Saint Mary. From Marina Grande up to the ancient walled city, shops display a massive variety of lemons and products made from the fruit. Amalfi The town after which the coastal stretch is named is densely packed with historic buildings and fishing boats that create an unassuming front to this once powerful town. Amalfi’s historical significance coupled with her striking landscape and laid-back pace saw her rise again as a tourist destination. Many famous personalities, including Richard Wagner and Henrik Ibsen, have also stayed in the town. The imposing Cathedral (also known as the Duomo di Amalfi and



Cattedrale di Sant’Andrea) looms over the town square in a stately blend of Byzantine and Gothic styles and is perhaps the biggest attraction for tourists. The imposing stairs lead up the cathedral entrance, where the oldest post-Roman bronze doors conceal sacred relics from the holy crusades within. Saint Andrew is buried within the crypt, having been brought from Constantinople during the Crusades. Not only is Amalfi Cathedral a worthy visit for the religious, the architecture and artwork within is astounding and deserving of a closer look. Capri A short trip from the mainland towns of Sorrento, Positano or Naples, Capri is a small island with plenty to occupy the young and old alike. The Blue Grotto is Capri’s most famous natural attraction: the limestone in the cliffs forms the walls, ceiling and bottom of the grotto, and when sunlight is reflected a brilliant blue glow appears to emanate from the waters under your boat. The Green Grotto and White Grotto are accessible on the other side of Capri and well worth a visit away from the crowds of the major town if you have the time. The Gardens of Augustus are a must-see, offering


spectacular views of the winding Via Krupp road, profuse flowers in the late spring and summer months and numerous examples of the region’s traditional handpainted Majolica tiles. Anacapri The second largest town on the island has fewer tourists and plenty of atmospheric locations, making Anacapri an attractive prospect for holidaymakers looking for a quieter break. As with Capri, Majolica tiles decorate public spaces both outdoors and inside and nowhere is this art form more spectacular than in the San Michelle Church where ‘Paradise on Earth’ is depicted in the floor tiles. For visitors wishing to discover more about the famous and infamous antics of the nobles and artists who holidayed and lived on the island, Villa Lysis and Villa San Michele are two perfect destinations to round off the trip. CharterWorld – Luxury Yacht Charter Specialist

Today, I will pilot my boat out into the blue ocean, practice swan dives off the bow and say hello to a blue angel fish. Then return to stroll off the dock into my home that overlooks it all.

Live where every day is your best one yet.


A R I TZ - CA R LT O N R ES ERV E R ES I D EN C E AT CA RO LI N E BAY, B ER M U DA . Re s i de n c e s p r i c e d f r o m $ 2 . 5 M.


These materials do not constitute an offer to sell nor a solicitation of offers to buy or lease real estate at The Cove, a Ritz-Carlton Reserve Residence by residents of Connecticut, Hawaii, Idaho, Illinois, New Jersey, New York, Oregon, Pennsylvania, or South Carolina, or any other state or jurisdiction where prior registration, license or advance qualification is required but not yet completed or where otherwise prohibited by law. Void where prohibited by law. The features, fixtures, and amenities described herein are based upon current development plans, which are subject to change without notice and there is no guaranty that said features, facilities, and amenities will be provided, or, if provided, will be of the same type, size or nature as depicted or described. Offer subject to change at any time without prior notice. The complete offering terms are in an Offering Plan available from Sponsor. The Cove, a Ritz-Carlton Reserve Residence, is not owned, developed or sold by The Ritz-Carlton Hotel Company, L.L.C. or its affiliates (“Ritz-Carlton”). George’s Bay Residences Limited uses The Ritz-Carlton marks under a license from Ritz-Carlton, which has not confirmed the accuracy of any of the statements or representations made herein.






I have worked in the financial services industry since the summer of 2006, and I am privileged to have worked for some of the largest financial institutions in the UK, if not the world. Each role I have held within a large institution has had the same objective, to provide suitable financial advice and guidance to affluent Private Clients. Six months ago, I made the decision to step away from working for a large organisation and move to a boutique investment management company based in Jersey. This change and the experience I possess has provided me with a unique insight into the difference in the provision of financial advice to Private Clients within both large and small organisations. My experiences have highlighted to me that the size and scale of a Financial Services business can significantly influence the provision of investment advice to clients and directly impacts upon the experience they have. As regulation has tightened across the industry, large financial institutions have become increasingly ‘risk averse’ regarding their own investment propositions and have completely moved away from creating investments that are unique to the client. This has resulted in the wide-scale adoption of a vanilla ‘Fund of Fund’ based investment approach, allowing the company in question to divert the risk of potential mismanagement away from themselves to the relevant external fund managers. By using this approach, the organisation removes themselves from the investment management process and minimises the chances of being pursued by clients, ombudsmen and regulators for remuneration. In theory, this type of proposition provides Private Clients with numerous benefits. It will provide a ‘hassle free’ solution that will allow them to benefit from the expertise of multiple fund managers, each with a specific skillset relevant to either a particular


Luciano Lombardo Wealth Manager geographical location or asset class with the addition of the investment oversight of the organisation that has created the proposition. The institution will select the individual funds itself, creating a highly diversified investment portfolio, with the ability to alter asset allocation decisions based on the changing global economic climate, driven by an Investment Committee that meets periodically. In practice, the situation can be very different. A natural outcome from the use of multiple fund managers is generally a severe lack of clarity and ultimately confusion for the client. A typical fund of fund proposition adopted by a large financial institution will normally possess in between 20-30 different mutual funds. Each fund can potentially hold in between 20-40 different direct investments, if not more. If the proposition is successfully screened in

order to not invest in the same underlying investments, the situation that investors can face is that they are invested in hundreds of different direct holdings. While I completely agree that this will achieve the institutional objective of reducing the level of investment risk experienced within the proposition, the outcome for the client is often that any outperformance (alpha) that has been generated, is diluted across the vast number of investment holdings. I have also noticed rising positive correlations in ‘off the shelf’ strategies which may perform detrimentally when markets move into the reverse. Investors face a further hurdle due to the lack of transparency regarding this type of investment. Often investors are only made aware of the top ten investments held within the fund, with little clarity provided on where the rest of their money is invested. Therefore, it can become extremely difficult and confusing for a client to interpret the reasons for their investments’ performance, whether good or bad. A major outcome from the improvement in financial regulation is that the cost of financial advice and investment management now receives more attention than ever before. Large Financial Organisations will often include a number of different charges, that will have an erosive impact on the performance of a client’s investments. Initial charges often relate to the cost of the financial advice a client has received and the administrative costs that a company will bear in order to invest on behalf of a client. This upfront entry fee is often a percentage of the initial amount invested, meaning that clients who invest larger initial monetary sums will pay more for the financial advice received, then they would if they invested a smaller monetary figure. The initial fee charged by a large financial institution could potentially be justified should that company possess a wide number of different investment solutions. However, more often than not, the client will have to choose between 2-3 different options, highlighting a ‘one cap fits all’ approach, rather than providing a bespoke solution that relates to the client’s objectives. Ultimately, the main difference between a Private Client choosing

to invest money with either a large or small company stems from the ability of either one to make the client feel ‘valued’. From my experience, client feels ‘valued’ when they feel like they matter and when they feel like they are in receipt of a service that they cannot easily be provided with elsewhere. This is where, in my mind, boutique investment management companies have a competitive edge over larger institutions. A rising number of clients feel dissatisfaction at how ‘automated’ the financial services industry has become. Whether you look specifically at day-today banking, financial advice or investment management, it is clear to see that technological advances have shifted the client experience from ‘personable’ to more ‘automated’. Boutique investment companies are rarely automated, are able-to treat clients individually and do not suffer the consequences of ‘scale’ that hinder larger organisations. Bespoke, ‘client centric’ investment mandates can be generated and implemented that will be ‘custom made’ to suit the needs of the client rather than be designed to simply generate an income stream that will improve the profit margin of an institution. A ‘Boutique’ will often base a ‘bespoke investment portfolio’ on direct investment into fixed interest securities, equities and other asset classes, providing clients with transparency and the ability to monitor investment performance. Direct investing also provides clients with a more ‘cost effective return’ as there is a significant cost saving in comparison to the multiple layers of fees levied by larger institutions and their fund of mutual funds. In the retail food industry, it is the smaller bespoke enterprises that offer high-quality products and personal service. These establishments are popular with the discerning client who would generally avoid the large mass-market supermarkets such as Asda and Tesco. It is somewhat perverse that ‘gatekeepers’ often steer clients towards the financial supermarkets rather than bespoke purveyors of quality financial advice. Luciano Lombardo Chartered FCSI, Dip PFS Wealth Manager


IS A SINGLE FAMILY OFFICE REQUIRED TO BE LICENSED IN SINGAPORE? (b) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations. Alternatively, a corporation that provides financial advisory services to its related corporations may rely on the licensing exemption under regulation 27(1)(b) of the Financial Advisers Regulations.

Sebastien Hayoz, Director,

Client Services, Asiaciti Trust The Monetary Authority of Singapore (‘MAS’) recently issued new guidance on the licensing and registration of fund management companies to clarify the regulatory treatment for single family offices (‘SFOs’). In the absence of a definition under the Securities and Futures Act (‘SFA’) or the Financial Advisers Act (‘FAA’), an SFO refers to an entity which manages assets for and on behalf of only one family1 and is wholly owned or controlled by members of the same family. MAS confirmed that it has no intention to license or regulate SFOs and will, therefore, maintain the current class exemptions under the SFA and FAA subject to successful application by the SFO. The first exemption is for a corporation which manages funds for its related corporations. Typically this would take the form of a Group holding company having the sole and entire participation in the SFO and the Investment Fund managed by the SFO itself. The corporation may rely on the licensing exemption under paragraph 5(1)


If the entity does not fall under the two above mentioned exceptions but in substance manages funds on behalf of a single family only, it may seek a licensing exemption from the MAS under section 99(1)(h) of the SFA. The application for exemption to be an SFO which can take between two and four months depending on the complexity of the arrangement shall include the following information to facilitate MAS’ assessment: • Names of the shareholders and directors of the SFO; • A chart depicting the shareholding structure of the SFO; • A description of how the SFO is related to the investment fund vehicle and the family/beneficiaries; • A description of the profile of the family whose assets will be managed by the SFO; and • A description of the nature of activities to be carried out by the SFO. Broadly speaking, the typical SFO arrangements considered by MAS are as follows and it is, therefore, advisable to include such information when applying for licensing exemption: • Where there is no common holding company, but the assets managed by the SFO are held directly by natural persons of a single family; • Where assets are held under a discretionary trust, the settlor of the trust and the beneficiaries are members of the same family; • Where a family trust is set up for charitable purposes, the charitable trusts are funded exclusively by settlor(s) from a single family; • Where non-family members such as key employees of the SFO are shareholders in the SFO for the purpose of alignment of economic interest and risk-sharing, the initial assets and an additional injection of funds are funded exclusively by a single family. Singapore has demonstrated its top position as one of


the world’s leading centres for investment funds and have delivered specialist fiduciary and administrative asset management, with approximatively US$1.8trn services to individuals, intermediaries and corporations. of total assets managed by Singapore-based asset The Group is headquartered in Singapore and has DED I C ATED ENTRANCE PRIVATE HOST EXCLUSI VE SECURITY EXPERIENCE CHAUFFEU P L AN E managers, according to MAS 2015 data. additional operations in Hong Kong, the Cook R Islands, Dubai, Nevis, New Zealand, Panama and Samoa. We Its political stability, well respected regulatory are Asia Pacific focused with global reach, able to offer standards and friendly tax system offer an attractive structures and solutions in almost any jurisdiction via environment for local and international business. our extensive international network. MAS refers to Singapore as the ‘Global City, World of opportunities’ and with the clarity now given reinforces its strong commitment to its asset and wealth management industry. Singapore offers the stability and regulatory security which are two key components for wealthy families and Ultra High Net Worth Individuals when considering the establishment of a family office, the opening of a foreign branch in the APAC region or even the relocation of the family office headquarters. Asiaciti Trust is an international trust and corporate services, provider. For 40 years we

Asiaciti Trust was established in 1978 by our founder, Graeme W Briggs. Over time the Group has expanded steadily and is now one of the most recognised and professionally respected names in the industry. We remain family owned and fully independent.






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DAVID FOWKES JEWELLERY Fabulous, artisan cut gemstones are the focal point of David Fowkes Jewellery. He has sourced a wonderful selection of stunning quality gems, ready to become part of a unique collection of jewellery. Not only is David widely known for his use of wonderful coloured gemstones, but he is also one of the leading jewellery designers to use boulder and black opal. Exquisite Australian opals are at the core of the David Fowkes Opal-collection. Working

closely with both the miners and the cutters, David has the luxury of being able to “cherry pick” the finest opals for his creations. Together with his in-house opal cutter, he can create unique opal cuts you wouldn’t see anywhere else. The opals David prefers to use originate from a few selected mines in Australia. Different colour spectrums are often found and mined within close proximity to each other, but the prevalent conditions of their “birth” can

result in a whole diversity of colour and intensity. With this in mind, David will choose the mines in order to generate an interesting variety of these alluring rocks. Throughout history, gemstones have been associated with various beliefs and superstitions. Even today, Opal might be considered by some as being unlucky; a closer look into the history of gemstones explains it all. Queen Victoria adored opals and opal jewellery, which made them very



fashionable in that era. Around the same time in 1900 black opal was discovered, and its hypnotising beauty captivated the gemstone market. Due to its unusual, exceptional dazzle, it was immediately perceived as an incredibly lucky and desirable stone. Diamond dealers, who feared losing their clients to this newly found competitor, released the rumour of opals being unlucky in an attempt to protect their business. Another possible reason for the negative reputation of the Opal might have come from the jewellers’ themselves: due to its brittle nature, opal can be difficult to cut and complex to set. These issues can be dealt with through knowledge. The understanding of how to treat and set opals is much better these days than in times past. Opals naturally contain water, which partly gives them their mesmerising radiance and life. They are

wonderfully equipped for every day wear. All one needs is a little understanding of how to care for opal jewellery. The hardness of an opal is about the same as glass. Hence it is important to treat your opals with care. It is also vital to avoid heat or rapid temperature changes as most precious opals contain 5-6% water, they might crack or dry when exposed to heat or stored in a warm place. Should opal jewellery need cleaning, warm water and mild detergent with a soft toothbrush is the best way to do it. There is no need to store your opal in a damp cloth – a misconception that is deeply rooted in the minds of many. Even though opals do contain some water, this doesn’t mean that water will penetrate them and enhance their colour or durability. Things that do damage opals are strong detergents, perfumes and cleaning products. Normal hand wash should not damage an opal ring.

What makes an opal so uniquely change its colours like a flashing fire? Opals are unique compared to other gemstones as they do not take on the typical crystalline form. Opal is made up of different sized microscopic spheres. This difference in size of sphere reflects different colours. The play of colours, or the “fire”, is caused when white light is absorbed into the opal structure, which in turn flashes intense colour and light. To enhance the play of colours, David likes to add high-quality diamonds into his opal creations. Like the opals themselves, each design within the Opal-collection is exclusively unique and has its own personality.



On a daily basis, the media is flooded with reports of cyber security breaches. The victims appear to be targeted indiscriminately impacting families and companies alike. There are plenty of statistics available, but the two most relevant are the recent Crime Survey of England and Wales that states 50% of all crime is cyber-related, supported by the Center for Strategic and International Studies findings that it costs the global economy $300 billion annually. Why and how are families being targeted? In short, they are the easiest to target. Children are very relaxed about sharing their personal details, and therefore the most successful attacks we see are a result of phishing. Phishing is when criminals send texts, emails, or popup messages to trick people into sharing their personal and financial information. They are very effective when combined with ransomware, resulting in significant losses. This is usually the stage that S-RM first meets our clients. We’ve seen a 45% increase in cyber extortion and hacking cases in the past 12 months. While it may feel that there is a certain inevitability about being hacked there are a number of things families are able to do to protect their reputation and hard-earned cash. Prevention and preparation go hand in hand. Simplicity and proportionality are key to hardening the family cyber security posture and ensuring that if you are breached you have a clear and workable plan in place to respond. Technology is only partly the answer, such as keeping security software updated on all devices and apps. It is also important to get the fundamentals in place - the family needs to agree on their values and how they apply in an online context. If everyone is clear about the values and acknowledge what the information


Lawrence Shindell

ARIS Title Insurance ‘crown jewels’ are, it will help the family make more sensible decisions when they are online. This needs to be an ongoing conversation as it will take time for it to sink in with the children who will need regular reminding. Phishers often get to the family through attachments that look interesting and contain malicious software, such as free promotions, movies, music and access to fan sites. At S-RM we see at least one client per month who has clicked on an attachment and has unknowingly downloaded malware or whose children have filled in details on a ‘too good to be true offer’. Usually, having downloaded their malware, the hackers have waited weeks or months before making their move. This enables them to mimic the email of the victim and contact their bankers or advisors using a similar style of email. The hacker will then take control of the victim’s email and ensure that rules are set up to send incoming mail into specific

folders so that the victim is unaware of what is going on. The loss of funds has ranged from £100,000 to over £1m. Also, address books of the victims have been copied, and similar thefts have been attempted on their friends and relations. Swift action at this point has helped cease the losses, protect reputations and enabled the limited recovery of funds. These are some basic rules for keeping the family cyber safe: • Trust your instincts – if something seems too good to be true, it usually is. • Don’t click on attachments from unknown sources, and take caution opening attachments from known sources if they seem unusual or out of context. • Don’t reply to a text, email, or pop-up messages that ask for personal or financial information. • Avoid clicking links in email messages, particularly from unknown sources. Where possible, manually go to the website by typing in the address into your browser. • Don’t give personal information on the phone in response to a text message. • Use security software and update it regularly, especially on your apps. • Check your bank account statements for unauthorised charges and transactions. • Show your children examples when you get a phishing message so they can learn to identify them. • Make sure you have strong passwords. You should change them every so often. However, you don’t need to change them all the time if they are strong. It is important that passwords are kept private, easy to remember and hard to guess. • Watch out for scams - when disasters happen, good-hearted people, young and old, can be vulnerable to fake appeals for help. • Use secure Wi-Fi and ensure your home network uses encryption and a password. • Use geolocation sparingly and disable it for all apps, except those you specifically need it for. • Lock down your social media and check the security settings regularly, because site such as Facebook regularly change them.

• Don’t post anything anywhere on the internet if you don’t want the world to see it. A good analogy is to imagine you are writing a postcard – if you are happy for anyone to see the content, then you can post it on social media. • If you are breached, ensure you have a plan in place in order to speak to your advisors, security, PR. • And least popular of all… consider having children using their devices in a semi-public area at home, not locked away in a room and think about setting limits on how often children can be online and how long those sessions should be. A friend of mine allows the devices to be fully charged at the start of the weekend. He takes all chargers and when the battery runs out screen time ends. That breeds different behaviour and his daughter uses her devices sparingly then has her brothers running errands in order to earn screen time from her! Heyrick Bond Gunning Heyrick is the CEO of S-RM. As well as leading S-RM, he keeps close to the clients and is responsible for the development and strengthening of existing client relations across S-RM. He has over 25 years of experience managing risk, and prior to joining S-RM in 2006, he was the Managing Director of Security Consulting at Kroll, where he was also Head of Kidnap for Ransom. He previously consulted to DHL for a year in Iraq, flying into the country the day the second Gulf War ended and setting up a business with annual revenues in excess of $70m. In 2000, he was the Head of Client Engagement at Mergermarket, a financial services information provider, servicing clients in EMEA and USA, before which he served in the British Army. Heyrick has an Honours Degree from the University of Manchester, specialising in Anatolian Archaeology, is an Alumni of INSEAD Business School and in 2004 his first book ‘Baghdad Business School’ was published.



MORE THAN JUST A PASSIVE VEHICLEG The narrative around the growth of ETFs continues apace, as most of you are reading this article will know. For those of you who don’t – a quick recap. And no, we are not an ETF provider. We are an established boutique investment management firm that identified the advantages of portfolio construction with ETFs in 2007 – when the industry had “just” over $500bn in assets. Since the start of the explosive growth in ETFs over the last ten years, these vehicles have been used to allow easy, very low cost, transparent access to a multitude of markets and asset classes. They have been utilised by virtually all types of investors. These range from financial advisors who were the early adopters, to sophisticated institutional pension, hedge fund, and asset management firms to do-it-yourself retail investors, and more recently robo-advisors. In short, they are being adopted across the spectrum, and have even peaked the interest of traditionally harder to reach foundations and family offices. ETFs have evolved to provide one-stop shopping in the investing supermarket, even incorporating factorbased investing and risk management of all types. The result is a dizzying array of ETFs to provide access to virtually any capital market exposure you care to take. Today, there are over 12,000 listings from almost 300 providers on 65 exchanges in 53 countries, according to ETFGI - the leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem. At end February 2017, assets invested in ETFs/ ETPs listed globally stood at US$3.84 trillion, yet another record high, achieved after three plus years


Susanne Alexandor

Cougar Global of consecutive monthly inflows. 2016 recorded the largest annual inflow since the widespread adoption of ETFs. While the trend began in the U.S. market, which accounts for about 70% globally, virtually every other major region – Europe, Asia, and even Canada, is coming on strong. Canada celebrated the 25th anniversary of listing the first ETF on an exchange, the TIPs (Toronto 35 Index Participation Fund) tracking the TSX 35 index. The TIPS ETF listed in Canada nearly three years before the first ETF the SPDR S&P 500 ETF (SPY) was listed in the United States on January 29, 1993. Another Canadian export that (as usual) most people outside of Canada don’t know about. 1993 also marked the formation of Cougar Global

Investments as an investment management firm as a global asset allocation manager. The aim of the firm was to provide an alternative to the proliferation of mutual funds and brokerage services and provide the type of high-caliber, globally diversified investment management to high net worth individuals that pension funds had access to. With its macro-oriented approach, clients were offered a manager of manager portfolio, incorporating some of the best investment talent available in the industry at the time. This approach was ultimately improved upon in 2007 when Cougar Global decided to adopt ETFs as its implementation tool. Cougar Global was both a pioneer in global asset allocation and an early adopter of ETFs as it made its global asset allocation decisions. The equity bull market that began in the late 80s and continued through the 90s, as today and every decade in investment management, brought about great change. This era saw the proliferation of mutual funds, which provided access to great investment talent, access, and diversification to the mass affluent. They helped provided pools of capital to the firms that went public, distributed by in-house advisors. Of course, some not insignificant fees went along with all that. However, it seemed everyone won. Until the tech wreck, 9/11, and eventually the market meltdown in 2008 changed everyone’s attitude towards risk. So, let’s talk about risk. Do you want to make money when markets are going up, but want to avoid losses when in a bear market? Welcome to the club. No matter if you are the most sophisticated, or unsophisticated investor in the world, this is what everyone wants and tries to achieve. Investors dislike losses a lot more than they like gains.

definition of risk, generally accepted as Markowitz’s modern portfolio theory which is still widely used for portfolio construction today. Even Markowitz, however, suggested his modern portfolio theory, which gave rise to a risk/reward framework for investors, was limited by the computing power that existed at the time. Mean-variance optimised portfolios were “du jour” in the 60s, but can be improved upon with advances in computing power. Today, we can capture the types of risks Markowitz would have liked to have incorporated. With today’s computing power we can capture and construct portfolios for the real world, unlike the strategic ones captured by defining risk as standard deviation around a mean, is a meaningful advancement, similar to the internet, chip technology, and the iPhone. We all know that when there are “Black Swan” events such as 9/11, the “tech wreck”, and the 2008 meltdown, investors buckle down. This is when risks in a negative macro environment are not symmetrical around a mean. This is when no matter how good a stock picker you are, the likelihood of losing money increases dramatically. Conversely, this is when even in a favourable macro environment, a bad stock picker has a high chance of making money. The investing world has always been an uncertain place. Bear markets can result in significant losses. The advancement in computing power combined with the many investment opportunities created by ETFs allow for a completely different portfolio construction option. One that can be geared to achieving an outcome based investing by taking an active approach to risk managing your portfolio based on the macro environment which we all know is important to managing equity risk. After all, who says the S&P or any index should be your personal benchmark when all you care about is consistent returns.

This theory was proven mathematically by behavioural psychologists Daniel Kahnemann and Amos Tversky, who were awarded the Nobel Prize in economics (2002) for doing so. They helped provide an alternative to the modern portfolio theory


WHEN SPEED RULES The Honda Jet, an Aircraft we just can’t stop talking about

ITS GOOD TO BE KING There are many ways to cruise in style. You can cruise at sea level in a motor yacht with 12 of your closest friends and three times as many support staff. You can cruise at street level on two wheels or four. Or you can cruise in the flight levels, above the hustle and hassle of weather, traffic and speed limits (and local police). And that’s exactly what the crew of Top Gear recently demonstrated. When Chris Harris and Matt LeBlanc, the new presenters on BBCs popular Top Gear reached out to the Honda Aircraft Company and asked, “So just how fast is that aircraft of yours?,” we knew something big was about to unfold. It seems that a debate had been raging, the gauntlet had been thrown down and the challenge was issued. Who could get from the Dubai Marina to the Anantara Al Jabal Al Akhdar Resort in Oman the fastest? The


Top Gear race would include a unique array of top shelf transportation—a superbike, a supercar and even a private jet and a motor yacht. On two wheels, the Italian-sculpted Ducati 1299 Superleggera with its distinctive exhaust note emanating from the Akrapovič tunes pipes to create a most magnificent symphony of mechanical design. On three wheels, the HondaJet, a marvel of aerospace engineering with its natural laminar flow contours and revolutionary over-the-wing engine mount that allows this bird to slip the surly bonds of earth faster than any other light jet. And on four wheels, the Bugatti Chiron with its heartpounding, 16 cylinder, 4-turbo, 488 cubic inch mill, pumping 200 gallons of coolant per minute to keep from melting into a red-hot mess. But before you think it sounds like an open and shut

case and place your bets, look at the specs on the contenders at the top of this page. What is interesting to note is that on paper, the HondaJet wins almost every category between the real contenders from highest speed, to sticker price, to passenger comfort. Only in one significant category, power to weight ratio, does one of the wheeled wonders ever-soslightly edge the aircraft to briefly sit atop the leader board. The Ducati only has to move 1.69 pounds for every horsepower its powerplant churns out. The Bugatti on the other hand, with its 16 cylinder, 1,500 horsepower engine has to roll nearly three pounds per horsepower. The HondaJet weight to power ratio is comparable to the Ducati and pushes a scant 1.75 pounds per every pound of thrust—and oh yeah, it carries all 3.5 tons of it eight miles up in the air and rifles it forward at 483 mph (mic drop here). It’s On As for the race itself, the clock started when the would-be speed demons left their half-eaten baklava on the table at the Dubai Marina and hastily departed for their respective rides. Harris strapped into the Chiron while LeBlanc boarded a motor yacht bound for another marina to catch

a limo headed for the HondaJet at the Dubai International Airport. And while a pedestrian ride in a limo to the airport may seem to put LeBlanc at a slight disadvantage, remember two things.

more than compensates for lost surface travel time. It also helps that private jet travelers like LeBlanc can save time at the aerodrome by avoiding security and keeping one’s shoes and belt on.

First, nothing the Stig does behind the wheel—even in a Rolls-Royce limo—is “pedestrian.” And second, there are no speed limits and no radar traps—and no goats to impede progress—once the HondaJet has tucked its three wheels stealthy into their wells.

Better Late Than Never Eventually, Chris Harris managed to arrive after playing dual roles of race car driver and pit crew member having changed three flat tires en route. And no, the Chiron doesn’t come with three spare tires or a pit crew for that matter so plan accordingly. Piloting such extreme and powerful thoroughbreds it’s difficult to say who had more fun during the race—LeBlanc in the HondaJet (after abandoning the yacht) and later on the Ducati. Or Harris in the Bugatti on four wheels (well seven actually if we’re counting spares).

The Shortest Distance Since the fastest route between two points is a straight line, and because aircraft never get a flat tire en route, it should come as no surprise that when a 483 mile per hour private jet is involved in a race with a car, the jet wins every day and twice on Sunday. That is as long as the finish line isn’t too far from the airport. In the Top Gear scenario, the race was from point A, Dubai Marina to point B, Anantara Hotel in Muscat, Oman—neither of which is located at an airport. As is often the case for jet travelers, the longest part of the journey can be the time spent traveling via surface streets to and from the airport. But with a cruise speed of 483 mph, the HondaJet

We do know this, when it comes to traveling in style and if money is no object, these were all excellent choices. Still nothing tops the spacious HondaJet for its blend of creature comforts like fully-private lavatory so you can powder your nose before the paparazzi arrives, and the thrust-you-back-into-theseat raw power. Ah yes, when speed rules, it’s good to be king.



By Chris Ganan Chief Strategy Officer, MedMen

The numbers are impressive and familiar to many who follow the U.S. cannabis industry. Triple-digit growth in recreational marijuana sales in recent years and predictions of more than $50 billion in total annual sales within the next decade. The recent passage of recreational marijuana in California, Nevada, Massachusetts and Maine, and new medical marijuana laws in Florida, Arkansas and North Dakota have served only to solidify those predictions. This is by far the fastest growing industry in the U.S. today. Naturally, there has been a lot of investor interest in the space. From an investment perspective, the federal ban creates significant opportunities since it limits options for traditional financing. Given the large addressable market and the general lack of liquidity, much has been written about the “Green Rush.” It is easy to get caught up in the novelty of it all. But here’s a newsflash; the cannabis industry is governed by the same fundamentals that govern every other industry. Knowledge is still power, and it boils down to evaluating and mitigating


risk. The regulatory environment is highly fragmented and rapidly evolving, while the underlying business is operationally intensive. Understanding the various layers is key for investors to achieve outsized, riskadjusted returns. UNDERSTANDING THE MARKET The federal ban makes investing in marijuana an inherently risky proposition, but it is only one factor in the risk assessment, and not a very big one if you understand the facts. The U.S. Congress has prohibited the Department of Justice from cracking down on legal medical marijuana programs as recently as December. Medical marijuana is legal now in 29 states and accounts for roughly a third of the $7 billion market. Given that public support for legalisation is the highest it’s ever been, and the near sweep of pro-marijuana state measures in 2016, it is unlikely that Congress will change its stance. A bigger challenge for cannabis ventures is the patchwork of state and local regulations

that govern business operations. Practically speaking, there is no such thing as a national cannabis market, say in the way that there is a soda market. The legal cannabis market is hyper-fragmented along state, and sometimes municipal, regulations. New York, for example, has issued only five medical marijuana licenses for the entire state. Licensees are highly restricted on what they can produce and sell limiting their ability to diversify offerings, but the small number of licenses also means less competition and potentially big returns.

and Scotts Miracle-Gro is a household name that does not depend on marijuana for its core business.

On the other end of the spectrum, California was the first state to pass medical marijuana, but the state legislature took nearly two decades to formally regulate the program, allowing a huge grey market with thousands of businesses operating in this arena. Today, California is the biggest marijuana market in the U.S. Los Angeles alone accounts for an estimated $1 billion in medical marijuana sales a year. New state regulations for both medical and recreational marijuana will go into effect in 2018 and are expected to profoundly shape the way the industry operates going forward. Investors who understand those impacts will be better equipped to evaluate winners and losers.

Regardless of the investment option, at the core of any successful cannabis investment strategy should be a clear understanding of the regulatory landscape, and a deep grasp of the complex nature of cannabis operations. Running a cannabis business involves a lot more than knowing the difference between sativas and indicas. Does the company or venture you are interested in have the expertise to run and scale a successful operation?

UNDERSTANDING INVESTMENT OPTIONS The Green Rush has spawned myriad investment opportunities, including venture capital, private equity and several public companies, most of them traded in the over-the-counter stock market. The over-thecounter exchanges are less liquid, transparent and regulated than traditional stock markets such as the Nasdaq or the New York Stock Exchange, making such investments highly speculative. Late last year, San Diego-based Innovative Industrial Properties became the first cannabis-related company to be listed on the NYSE. IIPR is a real estate investment trust that seeks to acquire properties and lease them to plant touching companies, meaning they work directly in the production and distribution of cannabis. Companies that offer ancillary services or products to the industry have garnered some attention. For instance, Scotts Miracle-Gro (NYSE: SMG) has positioned itself as the premier supplier for indoor marijuana growers. Both companies offer some risk mitigation for investors, real assets in the form of commercial buildings in IIPR’s case

Venture capital and private equity are two other popular cannabis investment vehicles. Generally speaking, venture capital invests in start-ups with high growth potential, whereas private equity firms buy existing companies and take over management in an attempt to increase revenues and value. Investors also may opt to invest directly in start-ups, marijuana-related realestate or private companies.

The industry is quickly becoming institutionalised requiring top-notch expertise in fields like agrotechnology, chemistry, marketing, operations and logistics, to name a few. Some of the most cutting edge techniques in indoor cultivation like new LED lighting technology, for example, are being developed in the cannabis industry today. The offerings are so many, and the market is growing so rapidly that even sophisticated investors are tempted to skip the fundamentals. But it is important to remember that this is less about investing in marijuana, and all about investing in solid business models backed by the right premise, and the right people. About the author: Chris Ganan is chief strategy officer of MedMen, a leading cannabis firm based in Los Angeles, and a general partner of the firm’s investment fund. Mr Ganan will be a featured speaker at the Institutional Capital & Cannabis Conference, March 28 through 29 in San Jose, California. The conference, the country’s first ever cannabis expo for institutional and accredited investors, is a collaboration between MedMen and IMN, a global organiser of institutional finance and investment conferences.




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Spring Issue 2017



10 S amuel Prout BADA 2017 returns to Duke of York Square, Chelseayear’s with 2017 loan exhibition Samuel Prout

04 B ea uty o f the Belle Ép o q u e In 1911, Italian artist Giovanni Boldini painted a portrait of “the most picturesque woman in America.”

CEO & Editor

Siruli Studio

WELCOME TO ART & MUSEUM MAGAZINE Welcome to the inaugural issue of Art & Museum Magazine. This publication is a supplement of Family Office Magazine, the only dedicated Family Office publication with a readership of over 46,000 comprising some of the wealthiest people in the world and their advisors. Many have a keen interest in the arts, some are connoisseurs and other are investors. Many people do not understand the role of a Family Office. This is traditionally a private wealth management office that handles the investments, governance and legal regulation for a wealthy family, typically those with over £100m + in assets.

24 British Art Fair 2017 British Art Fair, one of the UK’s most popular fairs returns



M ind over M atter Interview withTony Cragg by Rajesh Punj


14 Co n d itio n Reports An Essential Tool for Protecting the Art, Collectors, their Investment

WELCOME Art & Museum is distributed with Family Office Magazine and will also appear at many of the largest finance, banking and Family Office Events around the World. Media Kit. - We recently formed several strategic partnerships with organisations including The British Art Fair and Russian Art Week. Prior to this we have attended and covered many other international art fairs and exhibitions for our other publications. We are very receptive to new ideas for stories and editorials. We understand that one person’s art is another person’s poison, and this is one of the many ideas we will explore in the upcoming issues of ‘Art & Museum’.

34 NATALIA GONCH AROVA and the art scandal

Rolls Royc e THE Rolls Royce ART PROGRAMME




The Story Behind One of Boldini’s Greatest Portraits By Bill Rau M.S. Rau Antiques

Beauty of the Belle Époque In 1911, Italian artist Giovanni Boldini painted a portrait of “the most picturesque woman in America.” Rita de Acosta Lydig was a prominent 20th-century socialite. Born in 1880 and descended from the Dukes of Alba, Rita had the personality to match her lofty heritage. At the age of 19, she wed the eccentric multi-millionaire William Earl Dodge Stokes. They divorced after just four years, and she was granted a record $2 million settlement. She was soon after married for the second time to the wealthy and socially connected Major Philip Lydig, allowing her entry into the most fashionable circles of New York high society. She took her new moniker, “the fabulous Mrs. Lydig,” to heart, re-inventing herself as an exotic society beauty with a penchant for high fashion. Known for hosting decadent parties with a bohemianesque atmosphere, the Lydigs moved

in the same circles as Boldini and his contemporaries. A woman renowned for her fiery personality, sensational style and unmatched beauty, Lydig served as muse for some of the most celebrated artists of her era. Having been captured in alabaster by sculptor Malvina Hoffmann, on film by the photographers Adolf de Meyer and Gertrude Käsebier, and on canvas by John Singer Sargent and Boldini, Lydig’s distinctive, upturned nose and vivacious visage are seen time and time again throughout art history. Boldini’s nearly 6-foot-high portrait is unarguably the best among these works. The piece is currently on view at M.S. Rau Antiques’ French Quarter gallery in New Orleans, standing out with a brazen allure among Rau’s diverse collection of fine art. A work as monumental in size as it is in personality, she is unmistakably a woman with a story to tell.


There was perhaps no better painter to capture the beguiling Lydig as Boldini. Though he began his career as a landscape painter, by the 1890s his output was almost solely dedicated to the most fashionable and wealthy beauties of the Belle Époque. Affectionately known as the “Master of Swish,” his exuberant, glitzy style was especially desirable among his increasingly fashion-conscious clientele. More so than even his great contemporaries James McNeill Whistler and John Singer Sargent, Boldini attracted countless beautiful, affluent, and pedigreed subjects, both with his flattering brushwork and his amorous attentions. The “Parisian from Italy” dominated the artistic scene, while his captivating subject Lydig charmed and delighted fashionable high society. A renowned shopaholic and trendsetter, Lydig’s wardrobe in particular remains legendary among the fashion elite. She viewed each dress and every shoe not as a practical garment, but rather as a work of art. Dismissive of the popular mode, she dressed herself in neutral tones of black and white, preferring velvet and lace to pastel satins. Her gown in Boldini’s painting was seamlessly made from a single piece of 11th-century lace – a delicacy for which she had paid an incredible $9,000, a huge sum for her day. Yet, her ultimate extravagance were her shoes. She owned over 300 pairs, each custom-made by the exclusive designer Pietro Yanturni from rare luxury materials such as early medieval velvet and antique lace. Lydig’s influence as a fashion icon lives on in


the Metropolitan Museum of Art’s Costume Institute – it was her wardrobe that formed the basis of the Institute’s collection when it first opened its doors. The sensational impact of her couture – not to mention her charisma – is brilliantly captured by Boldini’s perfectly placed swirls and swishes, while his neutral palette only enhances her chic sophistication. Bedecked in monumental pearls and flowing white lace with cherry red lips, Boldini’s Lydig is an entrancing sight to behold. The portrait undoubtedly wove a spell over Lydig herself; though her beauty and fortune faded and her estate was in shambles towards the end of her life, she never sold the large-scale canvas. It wasn’t until after her death in 1929 that the portrait changed hands - Baron Maurice de Rothschild, a great admirer and collector of Boldini’s work, acquired it in 1931, and it remained in the illustrious Rothschild collection of art until 1995. Since then, it has been exhibited in both Italy and the United States, dazzling museum-goers and art lovers on both sides of the Atlantic. In the century since its creation, the work has taken on a new significance. Beyond the brilliance of its creator and intrigue of its subject, today it also reveals a mesmerizing glimpse into a bygone age. With this portrait and others, Boldini built a lasting tribute to the Belle Époque that he helped to immortalize. The glamorous fin-de-siècle glitterati continues to seduce through Boldini’s canvases, and Lydig’s visage continues to dominate any room she enters. One can only imagine her pleasure at the thought.



How Culture and Wealth Management can play together: An attractive and performing combination The objective of this article is to illustrate through two concrete initiatives how Deloitte addresses the challenges of wealth managers when dealing with fine art. The first initiative is led by Deloitte Luxembourg and the second one is led by Deloitte Spain.

unregulated nature of the art market, the difficulty to assess external qualified expertise, the difficulty to value and to measure the potential benefits of the investment on a regular basis, as well as the lack of information and research on the art market.

The motivations for Deloitte to support these initiatives are that the art market has been going through major transformations and the investment focus of high-networth individuals (hereafter “HNWIs”) is increasingly shifting toward alternative investments. After the 2008 financial crisis, HNWIs have been searching to diversify their wealth allocation and spread the risk incurred over various types of asset classes, one of which being fine art and other collectibles.

The complexity and individuality of family offices’ activities compiled with the specificities surrounding the art market requires a deep understanding and cooperation between the financial and art stakeholders. Building a bridge between these two traditionally separate universes would create synergies that should be beneficial and allow the sharing of each other’s expertise.

Based on a 2012 Barclays report, on average 9.6 percent of HNWIs’ wealth is held in treasure assets, which represents a sizeable portion of their total wealth. This is a significant opportunity but also a fiduciary responsibility for multi- and single-family offices to protect and manage wealth allocated with treasure assets. As for other asset classes, fine art requires family offices to prepare, carefully, their service offering to meet their client’s emerging needs, especially if they are exposed to the recent development of private museums. An artwork raises unusual challenges as regards to the


For this purpose, Deloitte Luxembourg is actively involved in coordinating the setup of an Art and Finance practice within the Deloitte network. Luxembourg indeed constitutes a prime location for family offices; it is currently one of the safest and most stable financial centers in the world, with a specific legal framework for family office activities, notably the Luxembourg Family Office Law of 21 December 2012. Another attractive benefit for family offices in Luxembourg is the Freeport facility launched in 2014. It allows the storage of highvalue EU and non-EU objects for an unlimited period of time, such as fine art, jewelry, classic cars, fine wine, and precious metals in a duty-free and tax-free warehouse.

Deloitte Art & Finance initiatives to support family offices dealing with fine art collections

By collaborating with art market professionals and cultural organizations, Deloitte Luxembourg searches to build strong expertise and knowledge of the whole art market and to develop non-financial services in order to allow wealth managers to offer a holistic advisory relationship to their clients. Given the high expertise required, establishing alliances with international art specialists is crucial to remain a key actor and service provider on this market where technical and knowledge barriers to entry are high. As a result, Deloitte Luxembourg has established a collaboration with the Van Gogh Museum in Amsterdam.

by Adriano Picinati di Torcello

Deloitte Luxembourg

by Cyrielle Gauvin

Deloitte Luxembourg

The Van Gogh Museum is one of the first world-class museums that has developed a range of professional services to accompany public bodies, private institutions, and individuals. These services include museum management, the collection or restoration of objects, the conceptualizing of exhibitions, or services centered on the visitor, to mention a few. This unique cooperation in the world of art and finance reflects how two organizations can combine their expertise to accompany this new emerging reality by offering multidisciplinary and customized solutions with the purpose of assisting wealth managers and HNWIs dealing with fine art collections throughout the life cycle of collections. It is also relevant to point out that Deloitte and Van Gogh are not involved in fine art transactions and consequently not exposed to potential risks of conflict of interest. Thanks to this collaboration, Deloitte Luxembourg can strengthen its internal

complementary art competence for its existing and future clients, while the Van Gogh Museum can deliver creative solutions that take financial aspects into account. This win-win situation is an illustration of the infinite possibilities that could be explored by enhancing cooperation and partnership between the cultural sector and the financial sector. The second initiative led by the Deloitte office in Bilbao, Spain is the Deloitte Global Impact Model designed to assess the social and economic impact of culture and cultural projects. This tool can support the clients of family offices in monitoring the social return on their cultural investments and activities. It can be useful, for example, for family offices dealing with HNWIs to set up private museums with the aim of evaluating the social impact of their cultural initiatives. The tool can also prove useful for philanthropic purposes when deciding which cultural projects to support. It can help to benchmark different cultural projects and select the one that has the best social impact, provided they use the tool. Thus, the Deloitte Global Impact Model can support family offices’ clients to build and leave an efficient legacy for future generations, and also demonstrate their philanthropic mission of supporting and enhancing the cultural landscape. More information on the Deloitte Global Impact Model or the collaboration between Deloitte Luxembourg and the Van Gogh Museum can be found in the Deloitte and ArtTactic Art & Finance Report 2016.


Samuel Prout (1783-1852) A Grand Tour in Watercolour

Samuel Prout (1783–1852) Ducal Palace, Venice Circa 1828 Watercolour with scratching out 69.8 x 101.2 cm Courtesy BADA 2017 © John Spink

Samuel Prout (1783–1852) Rialto Bridge, Venice Circa 1827 Watercolour with scratching out 74.4 x 101.5 cm Courtesy BADA 2017 © John Spink

Samuel Prout (1783-1852) Ducal Palace Circa 1830 Watercolour 41.3 x 59 cm Courtesy BADA 2017 © John Spink


BADA 2017 returned to Duke of York Square, Chelsea from March 15-21 and one of the undoubted highlights of our 25th anniversary fair will be a visit to this year’s loan exhibition ‘Samuel Prout: A Grand Tour in Watercolour’. One of the most celebrated artists of the English Watercolour School, the exhibition will explore Prout’s artistic journey from his humble roots in Devon to the magnificent cityscapes of continental Europe, which secured his reputation and helped earn Prout the title of ‘Painter in Water-Colours in Ordinary’ to both King George IV and Queen Victoria. Samuel Prout (1783-1852) was born in Plymouth, the son of Samuel Prout Senior, a naval outfitter employed at the Royal Dockyard, and was the fourth of fourteen children. Prout was fortunate to be educated at Plymouth Grammar School where his headmaster, The Reverend Dr. John Bidlake, became a major influence, nurturing the talents of both Prout and his fellow pupil Benjamin Robert Haydon. Prout and Haydon honed their craft together, sketching coastal scenes and beaches, together with the watermills, cottages and rural landscapes of the Devon countryside, and it was through this close friendship that Samuel Prout secured his first commission. Having been introduced to author and editor John Britton, by Haydon’s father, Prout was invited to supply sketches of Cornwall for the second volume of Britton and Bayley’s series ‘The Beauties of England and Wales’. Prout moved to London in 1803, and stayed for some time with Britton, drawing inspiration from his host’s own extensive knowledge and from works in the author’s personal art collection by the likes of JMW Turner, Thomas Girtin and John Robert Cozens. Inspired by the rising school of landscape, Prout studied perspective and architecture to develop his own style, funding his studies by taking in students and painting nautical scenes for London print seller, Palser. In 1818 Samuel Prout made his first trip to the continent and it was here that the young artist truly discovered his forte. Captivated by the quaint streets and market-places of Europe’s major cities and ports, Prout was able to capture their architectural features with a skill and diligence that no previous watercolourist had managed before.

Prout’s magnificently detailed renderings of continental Gothic architecture, gabled buildings, town squares and cathedrals, each bustling with life and activity, struck a chord with his wealthy fellow countrymen. Having been denied access to the continent by the Napoleonic Wars, Britain’s nobility and wealthy landed gentry were keen to rediscover the charms of Europe’s grandest cities, in the same fashion that their predecessors had on The Grand Tour a century earlier.

Arguably, Samuel Prout’s most renowned works are his lavish cityscapes of Venice, in which he effortlessly juxtaposed the chaotic activity of the bustling Mediterranean hub with the serene elegance of the city’s architectural splendours the Ducal Palace, the Doge’s Palace and the Rialto Bridge. Not only would these works see the artist achieve deserved royal acclaim but would they also play a major part in sparking the enduring British love-affair with Venice. At the time of his death in 1852, there were few cities in Italy, France, Germany, Belgium or the Netherlands that Samuel Prout had not visited and faithfully illustrated in his own incomparable style. Greatly admired by his contemporaries, Prout’s work is often compared to that of Turner, Gainsborough and Constable. His remarkable gifts were perhaps best encompassed by leading Victorian art critic John Ruskin, himself a former pupil of Prout’s, who wrote of his mentor in 1844 “Sometimes I tire of Turner, but never of Prout.” Sourced from private collections across Europe, ‘Samuel Prout: A Grand Tour in Watercolour’ brings together over thirty of the artist’s most notable works, many of which have not been on public display for over 50 years. The scope and breadth of the exhibition will be further strengthened by the addition of two of Prout’s earliest pieces, which BADA has been able to secure on

Samuel Prout (1783-1852) Ducal Palace, Venice Circa 1849 Watercolour 52.8 x 71.2 cm Courtesy BADA 2017 © John Spink

temporary loan from the V&A Museum. The collected works, ranging from Prout’s early sketches of Devon through to the grand vistas of Venice which established the artist’s reputation, offer an unrivalled insight into the development of one of Britain’s most celebrated watercolourists. The exhibition’s curator, Timothy Wilcox, a leading authority on British watercolour painting, says of the exhibition: “Prout’s pictures of European cities are not just journeys in space, they are journeys in time; the Victorian public adored him for suggesting that the world they had lost, submerged in the grime of Britain’s industrial cities, was no more than a train ride away. “Lovers of Prout’s work will never see this idea better represented than in these works of tremendous power and brilliance.” Visitors to the exhibition will also have the rare opportunity to view the ‘Lansdowne Album’ an original collection of Prout’s pencil sketches which will be brought to life in the form of an innovative fully-interactive i-pad display. A fully illustrated book exploring Prout’s artistic journey has also been published to accompany the exhibition, authored by Timothy Wilcox and British watercolour specialist John Spink, of John Spink Fine Watercolours.

Samuel Prout (1783-1852) A market place in Lisieux with the Cathedral in the background Circa 1828 Watercolour over pencil and ink 54 x 42.5 cm Courtesy BADA 2017 © John Spink

Samuel Prout (1783-1852) Rue de la Cros Horloge, Roen Circa 1824 Watercolour over pen and ink 32.4 x 42.5 cm Courtesy BADA 2017 © John Spink

The book will be available to purchase at BADA 2017, March 15-21 at Duke of York Square, London SW3 4LY or direct from John Spink Publishing


Global Fine Art Awards Ceremony and Gala The third annual GFAA winners of the 2016 awards were honored on February 11, 2017 at a black-tie Award Ceremony and Gala, selected from 78 nominees in 22 countries, 5 continents and 52 cities, based on a review of over 2,000 exhibitions. Museum directors and curators, gallery directors and owners, artists and art aficionados were among the guests at the historic National Arts Club in New York City. Some of the honorees in attendance include: Charles de Mooij, Director of Het Noordbrabants Museum, Den Bosch,The Netherlands; Gary Tinterow, Director Museum of Fine Arts Houston; Sean Hemingway, Curator, The Metropolitan Museum of Art; Susie Guzman, Director, Hauser and Wirth Gallery; Susan Davidson, Co-curator of Rauschenberg in China with David White and Curatorial Advisor to the

Robert Rauschenberg Foundation; Helen Hsu, Assistant Curator, Robert Rauschenberg Foundation; Lee Glazer, Curator, the Smithsonian Museum’s Freer and Sackler Galleries; Bryan Keene, Assistant Curator, The J. Paul Getty Museum; Fariba Farshad, Director Candlestar, and Co-Founder Photo London; Lina Lin, Researcher, National Palace Museum, Taipei, Republic of China (Taiwan); and Jonathan Henery, nephew of Christo, accepting the award for best Public Art on behalf of the artist Christo and Jeanne Claude. The event was co-hosted by GFAA President and CEO, Judy Holm, and GFAA Advisory Board Chair, Lawrence M. Shindell, and presided over by Master of Ceremony, Peter Trippi, Editor in Chief of Fine Art Connoisseur magazine, and GFAA Advisory Board member,

(3rd from right) Gina Quan, GFAA Advisory Board and Art Liaison with Lina Lin (far right), Researcher, National Palace Museum, Taipei, Republic of China (Taiwan), Nominee The Tercentennial of Giuseppe Castiglione’s Arrival in China, and guests.

Judy Holm, GFAA President and CEO, with Charles de Mooij, Director of Het Noordbrabants Museum, Den Bosch,The Netherlands, Winner, Best Renaissance, Baroque, Old Masters, Dynasties – solo artist, (shared) Jheronimus Bosch – Visions of a Genius / Het Noordbrabants Museum/ Den Bosch, Netherlands; (shared) Bosch. The 5th Centenary Exhibition / Museo del Prado / Madrid, Spain


Peter Trippi, Master of Ceremonies, GFAA Advisory Board and Judge Emeritus

Charles de Mooij, Director of Het Noordbrabants Museum, Den Bosch,The Netherlands, Winner, Best Renaissance, Baroque, Old Masters, Dynasties – solo artist, (shared) Jheronimus Bosch – Visions of a Genius / Het Noordbrabants Museum/ Den Bosch, Netherlands; (shared) Bosch. The 5th Centenary Exhibition / Museo del Prado / Madrid, Spain with Bryan Keene, Assistant Curator at J. Paul Getty Museum, Best Renaissance, Baroque, Old Masters, Dynasties (middle) Gina Quan, GFAA Advisory Board and Art Liaison with guests – group or theme, Traversing the Globe through Illuminated Manuscripts / The J. Paul Getty Museum / Los Angeles, USA

Ad ‘s-Gravesande, the intendant of the Lee Glazer, Curator, (tie for Win) Best Impressionist / Modern – group or theme, Jheronimus Bosch 500 Foundation with GFAA President and CEO Judy Holm The Lost Symphony: Whistler and the Perfection of Art / Smithsonian’s Freer and Sackler Galleries / Washington DC, USA with Jessica Duby. GFAA Judge emeritus. The Gala was co-chaired by GFAA Advisory Board members Danielle Amato Milligan and Ann Lydecker Bunge; and the Gala Committee was chaired by GFAA Advisory Board member Eleanor Goldhar. This year’s judges are Dean Phelus (American Alliance of Museums, Washington, D.C.); James M. Bradburne (Pinacoteca di Brera and Biblioteca Braidense, Milan); Gina Costa (independent art historian and curator, Director of marketing and public relations at the Snite Museum of Art, University of Notre Dame, Chicago); Barbara Aust-Wegemund, independent art historian and curator, Hamburg); and Joe Lin-Hill (AlbrightKnox Art Gallery, Buffalo). They selected the winners in the following 11 categories: Contemporary and Post-War Art

Sean Hemingway, Curator, Greek and Roman Art , Best Ancient Art Award, Pergamon and the Hellenistic Kingdoms of the Ancient World / The Met Fifth Avenue / NYC, USA

(solo artist and group/theme); Impressionist and Modern Art (solo artist and group/theme); Renaissance, Baroque, Old Masters and Dynasties (solo artist and group/theme); Ancient Art; Public Art, Design, Photography and Fringe. In addition to the juried awards, the final award, “Youniversal,” presented by Vastari, recognizes the best exhibition of the year as determined by public vote from people across the globe, which all nominees are eligible to win. Thousands of votes were cast during the voting period, from October 26th through November 13th, 2016. To expand the digital presence of GFAA further, a new award was added this year: YOU-2. The Top 10 Nominees, based on the Youniversal votes, became eligible for this Twitter-based award.


Best Practice Advice on Condition Reports:

An Essential Tool for Protecting the Art, Collectors, their Investment

by Lauren Fly As a paintings conservator with extensive experience in private practice, I am frequently asked by clients for advice on smart collecting practices and how to best care for not just the art itself, but the investment it represents. The majority of my answers begin with a gentle, but firm lecture on the importance of documentation. A condition report is a foundational document for any art collection or service, and they have long been an important aspect of best practice and due diligence in the art world. The report’s purpose is simple: to provide a thorough, objective accounting of the current state of condition for any work of art before, during, and after important moments in its lifespan. Despite this seemingly simple focus, there is dramatic variability in the quality and content of condition reports, and their reliability and lack of standardisation has proved to be problematic. Because of the increasingly high value of the works, the potential implications of an inaccurate or incomplete report can be profound. Just as one would not purchase a house or any other major asset without first conducting a survey or independent review, art is a financial investment, as well as an emotional one, and should be treated as such. As conditions reports are used by and are important for all players in the market, their significance far surpasses their common status and the frequency with which their preparation is given adequate attention. It is often easy to overlook the value of a quality


report prepared by an expert with years of expertise, since the artwork itself seems to speak to its own condition. However, in addition to the potential risk for incidents of condition change and damage induced by outside forces, artworks themselves deteriorate with age, and ageing can accelerate rapidly. Effective recordkeeping is the best way to monitor and maintain a collection, and prevent damage from reaching a point where it cannot be effectively treated without significant conservation intervention and potential loss in value. Museums and larger private collections can have established systems

for systematically preparing works of art for acquisition and exhibition, but even these have their limitations. Reports are frequently filled out by nonconservation staff, who despite their years of experience with art, are still no replacement for a properly trained, professional conservator. Only a conservator can provide the level of thorough examination and documentation needed to fully and reliably assess the history and condition of an object, including the subtle aspects of condition which have not yet led to obvious loss and create risk for future damage. Even amongst museums, there can be a discrepancy between

the form and content of a report, particularly during busy periods of exhibition installation. If the purpose of a condition report is to provide a reliable, consistent accounting of an artwork, it is important to have a standardised approach to examination and report preparation. This becomes even more important in the private market, where players have their own interests, biases, and motivation. An initial survey of the objects and their environment with accompanying documentation is essential for building a strong foundation for collections management. For the private collector, an inventory prepared by a conservator that includes a report on the current condition of the pieces is the basis for: supporting insurance policies, preparing a program of preventive conservation to properly care for the works and ensure their longterm preservation, making informed decisions about lending, moving works between various properties or in and out of storage, and planning security

arrangements for related properties. Condition reports also bring support and accountability to a wide range of other activities in the art world. Galleries, auction houses, and dealers should prepare condition reports upon receipt of a work or before shipping to prove that the work has remained in good condition while in their custody. Collectors can request a condition report prior to purchase and acquisition to ensure that the condition of a work is properly reflected in the valuation and to give them confidence in their decision-making process. Insurance companies require reports during exhibition or loan, or in case of damage, and a report prepared by a trained conservator can address subtleties of causation of damage in settling a claim. Lawyers can request condition reports to bring transparency to complicated legal issues or in documenting large estates and collections. Shipping companies use condition reports to provide clear lines of liability in case of damage before, during, or after transit.

Museums and cultural institutions routinely involve condition reports for acquisition, collections management, exhibition, and planning purposes. Essentially, there is no instance in which having a clear document of condition with accompanying photographs would not be of significant use in providing clarity and confidence to the interested parties. SGS is the world’s leading inspection, verification, testing and certification company. They are recognized as the global benchmark for quality and integrity. With more than 90,000 employees, they operate a network of more than 2,000 offices and laboratories around the world. With a senior staff built from experts in conservation and the art market, their art services division brings objectivity, experience and dedication to quality and transparency to the art world, to build trust and promote best practice.


HOW RISKY IS THE BUSINESS OF BUYING FINE ART? “I was speaking to a client on the ‘phone and had to give them the bad news. The multi-million pound painting he had bought was not authentic. Our scientific testing determined that the paints contained material that hadn’t been invented until after the death of the artist and therefore the picture could not be authentic. The client had bought the artwork from a very reputable source, with comprehensive documentation of the provenance, but unfortunately no scientific testing had been done before the purchase. While we see our share of fakes and forgeries, we are fortunate to be involved in the discovery of lost works by famous artists as well. The same tools that allow us to find one, allow us to discover the other,” says Francis Eastaugh, ADDG member and Forensic Scientist at forensic science and research laboratory Art Analysis & Research. They had a key role in identifying the Beltracchi forgeries and other fakes as well as internationally important discoveries of paintings by Rubens, Rembrandt, Watteau and Kandinsky amongst others. Art-crimes expert Robert K. Wittman, a retired FBI agent, put the total global art market figure at about $200 billion and art crimes at $6 billion of that total. The FBI’s Art Crime Team has recovered more than 11,800 artworks and artefacts worth about $160 million since it was created a decade ago.


Despite these figures, most people assume that they will not become the victims of such crimes. However, the Beltracchi gang in Germany in 2011 were found by a German court to have fooled experts, auction houses and connoisseur collectors by unleashing about 50 fakes onto the market, purportedly by famous artists such as Kees van Dongen, Fernand Léger and Max Ernst. The true damage done is not known and some of the legal cases may still be unfolding. The Knoedler fakes scandal saw a similar high level of brand name artist fakes hit the market through one of the oldest dealerships in New York; again established collectors were duped, with the result of more court cases and the closing down of the dealership in 2011. Common problems concern: • passing good legal title when the current owner might not have good title; • where the artwork has been lost or stolen or was looted during the War; • where the artwork might be wrongly attributed and not be by the purported artist; • where the artwork may not have a clean customs record and has been exported or imported without appropriate taxes and duties being paid; • where the artwork may be a national treasure and subject to export bars; • where the artwork may be in a poor condition, badly damaged or poorly restored or conserved; and • where the artwork may be incorrectly valued,

overpriced or even over-exposed, “burnt” on the market-place, and so no longer desirable and saleable for its purported value. This should warn any collector who is about to invest hard earned money in fine art of the potential risks and to conduct proper and thorough due diligence before making a purchase. In the spring this year, the Art Due Diligence Group was launched. This company brings together leading professionals in the core elements of art due diligence. It provides a streamlined and costeffective service to help buyers and sellers conduct appropriate due diligence on their artworks pre-sale and also to provide appropriate assistance in the event of any problems that may arise post-sale. Why now? The art market has long established traditions of highly informal and often opaque transactions, commonly without even written contracts, where the actual buyer and seller sometimes never even meet. This can cause great problems. In any financial market where there is the potential to make large profits, there are inherent risks of fraud and costly errors. The art market is no different; however where the systems and procedures for transactions can be opaque and are not uniform, the risks to its participants are very great. To date, there is no standard process for a fine art transaction, unlike the purchase of land, which has clear and well understood processes which every person engaging in a transaction of real estate can follow. Where the purchase of diamonds is concerned, there was established the Kimberley Process Certification Scheme (KPCS) in 2003 to ensure a compliance process to protect against

conflict diamonds entering the mainstream rough diamond trade. The Art Due Diligence Group makes due diligence easy for buyers and sellers. Its aim is to introduce straightforward and clear processes and to begin to standardise due diligence in art transactions and ultimately to take unnecessary risk out of high value deals. Says Jessica Franses, MD of Vitruvian Arts Consultancy Ltd (a fine art brokerage service), art lawyer and a director of the ADDG, “Overcoming the hurdles can be tricky and we plan to de-risk and demystify the art transaction process. Our checkpoint system involving all the members of the group will assist with a quick efficient and smooth process for all pre-investigatory work prior to private or indeed public sales. This also applies to transactions which might otherwise be aborted because one of the parties to it might see a ‘red flag’. By conducting different types of verification, we can aim to eliminate hurdles.” The Group aims to work alongside collectors’ advisers, art dealers, galleries, auction houses and other professional advisers to help them by providing an independent checking process. The founding members of the group cover the following disciplines: database and title claim checks, provenance research, forensic research, condition reporting, security and commercial due diligence, brokerage services for handling sales transactions, art legal services for contracts and commercial transactions, art recovery for stolen or looted art, reputation management, mediation and litigation services.


British masterpiece switched for fake at Manchester Art Gallery A fake masterpiece, hidden in plain-sight at Manchester Art Gallery, had been revealed ahead of the first episode of the new Sky Arts TV series Fake! The copied painting, Ophelia by Arthur Hughes, hung for a month last summer in the gallery’s Pre-Raphaelite collection and fooled over 75% of visitors as part of the show’s public competition. Presented by Giles Coren and art historian Rose Balston, the series will change the way that we look at paintings by replacing priceless masterpieces with fakes in some of the UK’s biggest public art galleries. It has been produced by IWC Media and GroupM Entertainment. Members of the public hunting for the fake masterpiece include school students, a cou-


ple on a first date, a group of art teachers and a father and his son. Rose and Giles discover the techniques used by expert artist Jonathan Adams to copy Ophelia, the original painting is by British Pre-Raphaelite artist Arthur Hughes. After family disputes and duped experts, only 24% of the public are able to spot that this work is a fake. The original painting Ophelia by Arthur Hughes, was painted in 1852 and was the first Pre-Raphaelite painting that he exhibited. Hughes adopted typical Pre-Raphaelite techniques, painting straight onto bright white canvases, applying extreme attention to detail, using strong colours and basing his work on literary or religious themes. The man who created the copy, Jonathan Adams is a professional restorer of artwork, copyist and

Ophelia by Arthur Hughes revealed as fake masterpiece switched for original at Manchester Art Gallery

Only 24% of people were able to spot the fake Pre-Raphaelite

a painter in his own right. He has copied and restored paintings in collections all over the UK. Jonathan will also feature in the second episode of the series where the public will try and spot his freshly painted fake, hidden in plain sight at the Scottish National Portrait Gallery in Edinburgh in an episode that focuses on portraits of Kings and Queens. In summer 2016, Sky Arts switched priceless masterpieces for specially made copies at art galleries and museums around the UK. The British public were invited to see whether they could

find the fakes among a group of original paintings hanging on the walls. Over a thousand people from across the country entered the competition, with just ten finalists selected to participate in the nail-biting series finale at the Ashmolean Museum in Oxford. The series finale will bring together the best art detectives from the series together at the Ashmolean Museum in Oxford to compete for a chance to win their own copy of a masterpiece to the overall winner.


CyberCraft Robots

Sculptural Artifacts from the Future


American artist Sarah Thee Campagna is the somewhat secret, creative force behind CyberCraft Robots. These award-winning, fine art sculptures tell timeless human stories with a retro-futurist twist.

These award-winning, fine art sculptures tell timeless human stories with a retro-futurist twist. Campagna’s contemporary sculptures have been exhibited in museums across North America. She has also contributed to a collaborative project that is slated for exhibition venues in Europe, Asia, and the Middle East. Her work has been exhibited alongside artists such as Eric Joyner, Steven Kenny, and Nemo Gould. It is collected internationally by both private and corporate entities, and has been featured in national magazines, two documentaries, and a book cover as well as numerous blogs and interviews. Though these sculptures may appear whimsical at first glance, the pieces have embodied commentary on war, unjust working conditions, environmental concerns, commercialism, theology, and things that go bump in the night. It also celebrates the possibilities of imagination, exploration, hope, peace and brotherhood, and that which makes us human. All of this is done with sly humor and an obvious nod to an earlier time, when many people imagined the future as a place of shiny wonder. The artist explains that most of her sculptures begin with one interesting, found

object. Her materials are a wide variety of found objects made of metal, glass, and Bakelite, as well as metal components entirely fashioned by the artist. Seeking out the elements of a piece consumes at least 20% of the time required to create it. Many of these finds are then re-fabricated. They are drilled, cut, bent, shaved, and otherwise manipulated using a range industrial tools - changing the original material to be the perfect shape, fit, and scale for the sculpture at hand. Campagna shares, “Many people are surprised to learn that my work is created by a woman. They are often amazed that my sculptures are made from found objects because my work just … gleams. But this stuff is pretty humble when I find it. Almost all of the components I use come to me dull and rusted, or otherwise oxidized to the point of being nearly black. Many are covered with oil, grease, or wax. Before the sculpture’s final assembly I use a host of methods to bring back the beauty of the metal. After the piece is completed, I protect it with metal lacquer or clear powder coat to preserve that gorgeous shine.” She sighs, “I love metal.”


Art settled on trust: best practices check list for trustees By Nadja Weber-Guido & Sandrine Giroud

Nadja Weber-Guido Nowadays many sophisticated trust structures for UHNW clients don’t just include plain-vanilla bankable assets but contain movable chattels such as yachts, aircraft, classic cars, artworks or even consist of an entire art collection. Holding such trust assets poses a different set of challenges for trustees and, as many trustees find, is not without its complexities and risks. Trustees and fiduciaries often feel more comfortable with traditional asset classes and sometimes tend to leave the management of art to beneficiaries or non-independent third parties. However, all risk still rests with the trustee. The nature of the art market that is often driven by the passion of collectors, is mirrored in high-value goods whose valuation frequently is a subjective and elusive matter. In addition, the discretion (if not opacity) surrounding art transactions, the number of international actors involved, plus a lack of regulations can create a knowledge asymmetry and thus add a further layer of perils for trustees.


Sandrine Giroud A trustee as the legal owner of a trust’s assets not only holds the rights of legal ownership, but also bears its burdens. The process of accepting trusteeship first includes the proper transfer of the assets or ownership into the trustee’s hands. The trustee is then responsible for the proper maintenance of the trust’s assets (i.e. ensure the maintenance of its value and condition), the payment of related taxes and fees and must monitor the fulfilment of any obligations and liabilities associated with such assets. Here is a check list of key actions to be followed by trustees when managing art on trust: Settling art on trust The principle of equity gains particular importance when transferring movable chattels such as art and antiquities on trust. Remembering that ‘equity will not perfect an imperfect gift’, the trustee must be sure that the transferor (i.e. settlor) has the proprietary capacity to transfer. This means that the trustee needs to verify that the

current owner possesses the proper legal title by verifying the provenance of the artwork(s). Careful Customer Due Diligence (CDD) includes both anti-money laundering (AML) and terrorist financing checks, as well as inquiries into the legal title of the artworks, their authenticity and the potential liabilities related to them (e.g. tax or customs liabilities). In particular, such due diligence checks include: • Title • Documentation (e.g. contracts, bill of sale, invoice, inventory, catalogue) • Provenance • Condition • Appraisal • Insurance • Customs and tax Among others, trustees should check the major databases of stolen and looted art and scrutinise the source of funds used to purchase the artworks and request detailed related documentation, especially in cases of recent collections.

The proper transfer of legal ownership to the trustee for chattels such as artworks ideally should occur by deed of gift. Trustees must conduct an inventory, record the condition of the assets upon receipt, be present or appoint a duly qualified representative to receive the assets and issue a delivery receipt. If no recent insurance evaluation by a competent specialist is documented, the trustee is well advised to request one to make sure the insurance in place is adequate. Equally, trustees should ensure that taxes and customs duties related to the art has been fully settled to avoid any subsequent liabilities or issue at import or export. Acquiring and selling art through a trust The same due diligence obligations apply when art is acquired or sold through a trust. Trustees should take care to select properly qualified and experienced advisers to assist them with the transactions to assure full transparency of the parties involved and the commissions received, as well as to guarantee that a competitive transaction process is selected (e.g. through auction houses or private sales). Above all, trustees should keep in mind that art dealers and auctioneers (even eminent and wellknown ones) might not necessarily be adequate advisors from the trustee’s perspective since their objectives are not necessarily matching. When choosing independent advisors, trustees should be careful in their selection and give preference to regulated providers. Monitoring art assets Once placed in trust, the trustee is responsible for the assets and must monitor that the artworks are kept in a suitable environment or adequately

stored, that the insurance coverage is up-to-date and continuous and, if an artwork is kept in a private home or otherwise in use, regular checks by the trustee or an appointed specialist on the condition of the assets and/or to conduct an inventory are advised as best practice. It goes without saying that the trustee must maintain proper documentation and records at all times. This includes the regular monitoring of the value of the assets, which should be done by getting periodic valuations. There are a variety of tools available to facilitate the management of the complex and abundant data related to artworks. In particular, trustees may wish to consider: • implementing a collection management system (CMS) that enables them to maintain a comprehensive overview of the collection that can assist with bookkeeping and administration; • engaging curatorial management services that can manage cataloguing and inventorying, provide insurance valuations, security and disaster recovery planning, physical care of the artworks, logistics and regular condition reporting. Trustees must also keep abreast of new developments in art management. For instance, besides traditional damage insurance, title insurances have been developed to insure ownership risks and help protect ownership against restitution claims or in cases when the person the artwork was bought from becomes entangled in divorce, bankruptcy, probate or other legal proceedings that question the seller’s right to dispose of the art. Similarly, cutting edge technology such as blockchain is being applied to the

certification, provenance verification and registration of artworks and trustees must be attentive that the management tools they are using do not become outdated. In cases where beneficiaries keep the art in their homes or as part of their personal possession, such beneficiary has received a distribution from the trust and the trustees must not only document accordingly, but also examine potential tax consequences for such beneficiary before using their dispositive powers. Trustees must also ensure fair distributions and thus rely on adequate and up to date appraisals of the artworks. Should a beneficiary move to another jurisdiction and plans to bring the artwork with him, the trustee must keep in mind the tax consequences, and, most importantly, check the rules concerning export control. For certain classes of artwork (e.g. if classified as cultural heritage or of national importance), the export is either outright forbidden or an export license is required. Take away As Hippocrates stated: ‘Life is short, art long, opportunity fleeting, experience perilous, and decision difficult.’ Beyond the common notion of ‘art’, Hippocrates meant art as craft and technique. Trustees who have been entrusted with artworks must honour and live up to their fiduciary craft and take the necessary measures for the proper management of these beautiful but fragile and sometimes challenging assets. They must fulfil their duty as prudent and wise guardians of the works entrusted to them and ensure that the passion and financial stakes invested in the art is treated with the appropriate care and diligence – to be passed on to the beneficiaries and the world as a whole.



British Art Fair

Mall Galleries, The Mall London S W 1. 13 - 17 SEPTEMBER 2017 CONTACT: GAY HUTSON. T: +44 (0)20 8742 1611 E: W:

British Art Fair 2017 The 20/21 British Art Fair, one of the UK’s most popular art fairs and the only one to specialise exclusively in Modern and Post-War British Art, returns to a new venue after its former location was suddenly unavailable in 2016. After some 25 years at the Royal College of Art, it is moving to Mall Galleries in central London close to the art market hub of St. James’s. The 28th staging will take place between 13th – 17th September. The fair is supported by 33 of the UK’s leading art dealers, some of whom have exhibited at the fair since its inception in 1988, which clearly demonstrates the remarkable loyalty which underpins this event. Its great strength lies in the excellence and variety of Modern (1900-1945) and Post-War art (19451970). However, work from 1970 to the present day will also be on show. Most of the great names of 20thcentury British art will be represented: Freud, Frink, Frost, Hepworth, Hockney, Lowry, Moore, Nash, Piper, Riley, Spencer and Sutherland to name a few.

Much of the work is privately sourced and fresh to the market and dealers retain key works throughout the year ready for display at the fair. The result is a niche event showcasing paintings, prints, drawings and sculpture of the highest quality. Mall Galleries is a well-known venue which hosts art events on behalf of the Federation of British Artists such as the New English Art Club. Many of the artists represented at the fair would have belonged to this group some 50 or even 100 years ago. ‘We are delighted to be back and are very excited by the response to the new venue’, say the founders and organisers, Gay Hutson and Angela Wynn. ‘We are confident that this select specialist fair, with its great line up of dealers, will be a feast for collectors.’ ‘The British Art Fair has the reputation of being one of the happiest fairs of the year’ (Huon Mallalieu, Country Life, September)


ASKHAT AKHMEDIYAROV APPLE OF HIS EYE Askhat Akhmediyarov is a contemporary artist who lives and works in Astana, the newly built capital of Kazakhstan, a truly futuristic city rising from the Kazakh steppe. Despite a glistening image of Astana, all shiny metal and glass, this place is transfixed between Soviet past and nuclear testings and the oil-rich present. The art scene in Kazakhstan is also relatively young, having emerged at the beginning of 1990s after the collapse of the Soviet Union, which resulted in new beginnings and produced fresh opportunities for the development of contemporary art in Central Asia, which have ultimately led to participation by Kazakh artists in many international forums and prestigious art events, including Venice Biennale. Kazakh artists’ practices span various media and, among the most recurrent themes widely explored, are post-Soviet visual aesthetics, freedom of expression and the impact of globalisation on their country, the aspiration to political and social change and the awakening of awareness about environmental issues. Through the nineties, the postSoviet generation of Kazakh artists began to evaluate and interrogate their Soviet past and went in search for their true identity, and this became the main focus of the Central Asian


art scene for the next two decades. Following the collapse of the Soviet Union each independent state of Central Asia chose its own unique path and subsequently ended up at a different stage of reformation. The next ten years of social and cultural transformations at the beginning of the New Millennium saw artist’s practices from Kazakhstan grow more mature. The ideas developed by artists from Almaty, Astana and Shymkent were based on the original context and managed to sustain a constant interest towards this region from international art professionals because of new perspectives towards the contemporary art discourse. Askhat Akhmediyarov is one of the well-established artists in the region. His 2016 solo-show at the National Museum of the Republic of Kazakhstan in Astana was his first comprehensive exhibition conceived to reflect the numerous conceptual approaches to art that he explores. His Singular Plural exhibition, curated by the international duo of Paul Arden / Dina Baitasova, was exceptionally well received and subsequently, this exhibition has been extended three times by popular demand. The Singular Plural exhibition became a perfect chance to show off the deep end of Askhat’s versatility as an artist, who has undertaken a very personal

research of identity by using different media – photography, painting, installation, video and performance art during the last decade. Askhat Akhmediyarov first became aware of a world of contemporary art through his teachers at Shymkent Art College, Vitaly Symakov and Moldakul Narymbetov, who were founding members of Kazakhstan’s trans avant-garde group Red Tractor (Kyzyl Tractor).

by Irina Bourmistrova

2016 was a turnaround year for Askhat Akhmediyarov’s practice and came to him in a proposal for cooperation on a site-specific project for Andakulova’s gallery curated by Irina Bourmistrova. The artist and the curator have found common ground in addressing their concerns about the increasing disparity between the traditional life of the steppes and the rapid growth of city centers influenced by hasty Westernization. Askhat Akhmediyarov’s solo show, Malus Sieversii, is based on the idea of the wild apple of Kazakhstan. Malus sieversii was a name given by the botanist Johann Sievers who was the first to describe the species in the late 18th century. The woodlands stretching from western China across northern Kyrgyzstan and Uzbekistan, and right down to south Kazakhstan, are dominated by the wild apples that gave the former capital of Kazakhstan its name: Almaty, or “Fatherland of Apples”. Nowhere else in the world do apples grow like a forest that literally surrounded the ancient city of Alma- Ata. However, the wild apple habitats have dramatically declined in the area since the 1980s, where wild apple trees once grew along streams and fence lines, now there are condominiums, shopping malls, and international banks in their stead. This idea became a strong metaphor and led Askhat to presents us with Kazakhstan in transition, a country caught between two worlds. Akhmediyarov’s artworks in different media video, performance, installation and photography are investigating the influence of various forms of modernity — television, consumerism, urbanisation on Kazakh culture and traditional Kazakhstan. Askhat creates highly intricate, staged photo compositions to depict a place in between traditional and the events of everyday life. His colourful and somewhat humorous tableaux are focused on the aesthetical quality found in the cultural and traditional elements and ornamentation. His photographs capture a new reality for young people who were caught between the disappearing life of the steppes and dreams of life in the city. This condition of being ‘in-between’ is shown in new series of photographs Malus Sieversii (2016). In these works, Akhmediyarov through the mytho-poetic narrative with added elements of ethnic archetypes: step, Nomad and their rituals ironically imagine the world of those who dream or aspire to live in the city centres. The artist is still actively engaged in the process of searching for identity and roots and through his art, highlights topics fundamental for understanding the complex time his native Kazakhstan is undergoing. Through this, he presents his construct of national myth and a layered view of “ Kazakh-ness”.


Villa Saraceno, Vicenza, Italy

by Theo Woodham-Smith Foundations of One Royal Crescent were laid in 1767: The Bath Preservation Trust is celebrating the 250th Anniversary of the city’s proudest terrace. The Trust explains how the exhibition is arranged, starting from the inspiration of ancient Greece and Rome, in particular, the Pantheon, his model of which Tim has sold to numerous collectors around the world, some even mistaking the photograph for the ‘real thing.’ There is then a chronological


development. We are greeted by a group of buildings by Andrea Palladio (1508-1580), the most influential architect who ever lived and the inspiration behind countless English stately homes such as Houghton Hall (Norfolk) and Chiswick House (near London), an infinity of noble buildings in America and culminating in 18th century Bath. The exhibition continues with houses designed by Inigo Jones (15731652) for grandees and royals including The Queens House, Greenwich, and finally the


The Metropolitan Museum Book Ends, Ellis Island Immigration Station & Chrysler Building

fashionable architects of ’modern’ Bath, John Wood the Elder and his son John Wood the Younger. There will also be a collection of smaller models devoted to the city of Bath. John Wood the Younger continued to develop his father’s style, infusing the Palladianism of Bath with ideas about returning to the source of classical design, Greek and Roman antiquity. Bath remains a ‘city of pleasure’ considered the world’s most beautiful townscape. Timothy Richards has a particular

affinity with neo-classical architecture, winning a strong following in America. The RIBA invited him to create a Palladio exhibition which toured prestigious institutions such as the Morgan Library in New York City, National Building Museum in Washington and the Carnegie Museum in Pittsburgh. Architectural models by Timothy Richards combine exactitude with true artistry, attracting high profile clients from around the world, from Sir Terence Conran to Harvard University. His craft goes back to

18th century Paris, unequalled in our time. His own quotes below express his dedication to the beauty of architecture and how a model made with such skill can bring lasting joy. “Great models combine not only passion and understanding but also something of the real building; an art form in their own right” “Story telling with models has always been a simple and elegant communication and a direct route to understanding. “All of the creative disciplines whether music, poetry or architecture have


more in common than we might at first think.” Timothy Richards’ makes models of well-loved buildings, from Buckingham Palace and Jane Austen’s House to the Lincoln Memorial and the White House in Washington. These treasures add lustre to interiors, as seductive on a desk or shelf, as displayed in a bespoke cabinet or niche. Tim loves and understands architecture which adds an emotional quality to his models that surpass technical perfection. He masterminds a team of ten in workshops (not a factory) converted from a Victorian school building in Bath. The origins of his craft go back to pre-revolutionary Paris when Jean- Pierre Fouquet and his son Francois were making models of similar quality. No one living today can compare – for once the word ‘unique’ transcends the cliché.

Richards has worked as a sculptor and model maker for the past twenty-five years. Over the decades he has miniaturised, among many other masterpieces, the US Capitol, the Flatiron Building in New York City, the Lincoln Memorial, Buckingham Palace, the Glasgow School of Art by Charles Rennie Mackintosh, its windows and balconies in pencil-thin lead and a 35 cm Ca’d’Oro in Venice with a turquoise glazed panel at the back. He works in plaster, bronze, wood and gold because ‘people have an instinctive feel for materials.’ The models are handmade in British Gypsum plaster, using a complicated process that involves constructing a master from styrene sheets, then casting in siliconerubber moulds created from the master. Most models range in size from 20 cm to 70 cm, and the accuracy is so remarkable that people can mistake these for the original in photographs. He has completed more than 150 models in Gypsum plaster, an effective masonry looks alike, and

Flatiron Building blue, New York City


Villa Rotonda,Vicenza, Italy

for tiny details, he uses brass, lead and glass. Everything is done by hand by the workshop team. Tim misses nothing, being a purist, perfectionist and follower of tradition with no 3D printing or computer aided design. Richards grew up in Corston near Bath. He reflects that the city of Bath with its grand Georgian streets probably inspired his chosen path. From the age of five to fourteen, he made models of ships from card or wood. A box of cornflakes was transformed into a tea clipper. He went to art college in Taunton, travelled around Europe looking at furniture design (loved the Wishbone chair by Danish designer Hans Wegner) taught art and design for six years, finally establishing his model making workshop in 1988. He showed his first four models, which included a Georgian terrace house, at fairs around the country. Sheer persistence won him a commission from Sir Terence Conran to create a 20 cm Michelin Building, complete with the tiny figure of Bibendum, imbibing a glass of nuts, bolts and nails. Over the past twenty-five years, Tim has completed over 150 commissions. Some models are produced in blue,

which look ethereal as if illuminated from within. Tim explains: ‘the colour strips out the history from a building and allows the observer to look at the pure form.’ He has attracted collectors around the world, with a particularly large following in America. In 2013 Richards won the Arthur Ross Award, the US Institute of Classical Architecture and Art Prize for artisanship in the classical tradition. So many of America’s most important buildings were inspired by Palladio, and five years ago Tim was asked by the RIBA (Royal Institute of British Architects) to provide models for an exhibition about Palladio based on thirtyone of his original sketches. The show travelled to the Morgan Library in New York, National Building Museum in Washington and the Carnegie Museum in Pittsburgh. Palladio himself looked back to the glories of ancient Greece and Rome. Tim has an affinity with the principles of neo-classical design, in his own words: ‘Georgian buildings can make you feel you are living in a palace, at least on its first, principal floor, known as the ‘piano nobile’. One Royal Crescent is a magnificently restored Georgian townhouse that creates a vital picture of life in late 18th century Bath.


Book Recommendations

The Sale of Misattributed Artworks and Antiques at Auction Author: Anne Laure Bandle, London School of Economics and Political Science, UK

The glamour and mystery of the art auction, gathering interested buyers from across the globe, makes it one of the most fascinating marketplaces in existence. ‘Sleepers’, artworks or antiques that have been undervalued and mislabelled due to an expert’s oversight and consequently undersold, appear regularly. This fascinating new book provides the first extensive study of the phenomenon of sleepers through an in-depth analysis of the contractual relationships, liability and remedies that arise in the context of auction sales. The Sale of Misattributed Artworks and Antiques at Auction begins with an examination of the creation of sleepers and the process of attribution of artworks and antiques at auction. This is followed by a comparative analysis of the law governing auctioneer’s liability in Switzerland, the United Kingdom and the United States and a critical assessment of the risks and drawbacks of the current practical and legal regime. The book concludes with an original and pragmatic solution to the challenge of addressing and settling sleeper disputes at auction, including model terms that auction houses can directly adopt in their business terms. This insightful new book will be of interest to lawyers, auction houses and anyone involved in the authentication or sale of artworks. It will also provide a valuable resource for academics and students in law, anthropology and arts.


Short Review: “The mishandling of works of art or antiquities raise a host of issues in international, civil and criminal law across different jurisdictions. Janet Ulph and Ian Smith have pulled together the different elements into a neat and extremely useful book. It works very well as a practitioner guide but includes a good academic context for the discussion.” – Richard Harwood QC, Thirty Nine Essex Street,

The Illicit Trade in Art and Antiquities Authors: Janet Ulph and Ian Smith

This new text provides practical guidance on the modern law relating to cultural objects which have been stolen, looted or illegally exported. It explains how English criminal law principles, including money laundering measures, apply to those who deal in cultural objects in a domestic or international setting. It discusses the recovery of works of art and antiquities in the English courts where there are competing claims between private individuals, or between individuals and the UK Government or a foreign State. Significantly, this text also provides an exposition of the law where a British law enforcement agency, or a foreign law enforcement agency, is involved in the course of criminal or civil proceedings in an English court. The growth of relevant international instruments, which include not only those devoted to the protection of mankind’s cultural heritage but also those concerned with money laundering and serious organised crime, provide a backdrop to this discussion. The UK’s ratification of the UNESCO Convention on Means of Prohibiting and Preventing the Illicit Import, Export and Transfer of Ownership of Cultural Property 1970 in 2002 is considered. The problems posed in attempting to curb trafficking in art and antiquities are explored and the effectiveness of the current law



ART SCANDAL by James Butterwick - representing ICAAD



Natalia Goncharova was born in Russia on June 4, 1881 and died in France on October 17th, 1962. She was a Russian avant-garde artist and painter. In 2007, Goncharova’s 1909 painting “Picking Apples” was auctioned at Christie’s for $9.8 million, setting a record for any female artist and her paintings still command huge sums.


3 their reproduction in two monographs on the artist by Western scholars and the author’s subsequent protection by a UK based convention of long since discredited historians of Russian Art.

Fast forward to June 2013, German police break up a major forgery ring and seized almost 1,000 paintings purported to be painted by major Russian artists, these included paintings alleged to have been painted by Natalia Goncharova. One year later a court case began in Wiesbaden.

“Imagine. In Moscow, a monograph is written on William Turner by a Russian art historian and within its pages are reproduced many new works that were previously unknown both to a wider public and to specialists of the great painter. There would be a flurry by English museums to be first in the queue to buy these paintings, (assuming they were real!) A sensation”. Andrei Sarabianov, ‘The Alternative Goncharova’. Artchronika magazine No. 2011

To protect the Natalia Goncharova legacy, The International Confederation of Antique & Art Dealers of Russian and the CIS (ICAAD) together with leading Russian specialists, museum directors and collectors brought this to the attention of the wider public in what they believe was the systematic forgery of works by Goncharova. With a major retrospective of the artist in Moscow, the time was right to close the debate once and for all regarding the hundreds of ‘new’ paintings by Goncharova appearing seemingly overnight. The paintings were given credence and authenticity with

Background. Natalia Goncharova was the world’s most expensive female artist with prices up to $10,000,000 at auction. In October 2010 and March 2011, two illustrated monographs about Goncharova were published in the West, the first by Anthony Parton, the second by Denise Bazetoux. In these books, hundreds of previously unknown paintings appeared for the first time. These works have astounded Russian Art experts, collectors and connoisseurs of Goncharova’s work alike. These ‘discoveries’ have been found alongside works by



Goncharova within the period of paintings that have achieved the highest value at auction. We are not talking about one or two new discoveries that could potentially be explained by mistaken attribution or lack of provenance but 150 new paintings that have appeared within a very short period of time that lack either credible provenance or exhibition history. In Denise Bazetoux’s book about 430 oils by Goncharova painted before 1915 are reproduced. Of these, 148 works are from museums, and another 130 have a detailed provenance and exhibition history. Although it’s well known that Goncharova painted about 300 oils pre‐1915, only 22 are unaccounted for. It begs the question, how could Bazetoux come to the figure of 430 paintings? Stylistic comparisons. Any experienced art dealer or historian would have little difficulty spotting which painting have dubious authenticity. When, these paintings are analyzed deeper; their absurdity and that of the other 150 paintings becomes clearer. The peacock in figure 4 is closer to a bizarre pheasant and shows a lack of confidence on behalf of the author, unsure how the

6 objects should appear especially when compared with its original in Figure 3. Negative certificates of expertise. Specialists from the Tretyakov Gallery, which holds the largest collection of works by the artist and her archives travelled to Europe to view both the paintings ‘Still life with a coffee pot and fan’ (illustrated in figure 1) and ‘Still life with sunflowers’ (figure 6). The museum promptly gave both paintings negative certificates of authenticity. However, despite this, the paintings still appear in Anthony Parton’s book as genuine. We would ask, how could Mr. Parton authenticate these paintings as genuine? By doing so, his certificates, and those of Denise Bazetoux are being used as selling aids on the European art market? We would also ask, how many paintings by Goncharova have these authors physically inspected? It would seem that neither author have viewed the Goncharova archives at the Tretyakov Gallery. Pre-1915 paintings by Natalia Goncharova. While it could be argued that it is possible that original works by Goncharova created before 1915 with


obscure provenance do exist, it is unlikely. This period of the artist’s work has been very well documented by contemporary art historians as her work was actively exhibited and recorded in catalogues. There is a comprehensive, authorized list of works by Goncharova published in the brochure by Eli Eganbyuri in 1913 and a further list of works made by N.D. Vinogradov. The fate of the artist’s works that remained in Russia after her emigration to France with Larionov is also well known. The total absence of any provenance with these paintings is another part of the mystery. Most dealers or experts working in any field of the arts will tell you that such ‘miracles just do not happen’ or, if they do, its very rare. Yet, here we have 150 ‘miracles’ and the authors of these books and the organisation that represents them, INCORM, maintain that the paintings are genuine. Let us examine one painting and compare it with a painting held by a museum that is beyond dispute. With the painting in figure 4 on page 54, a Western art historian has used two words, ‘private collection’. This


is quite simpl y not good enough as a provenance for a seemingly important futurist painting of the 1910’s. If we take into account the numerous exhibitions of Goncharova’s other works, how could such an ‘important’ painting have never before been exhibited? In addition, how could it be possible that none of the other 150 paintings have ever been displayed publicly? What possible set of circumstances could explain this? The mystery deepens as the authors of the books and INCORM have refused to answer any questions since 2011. When we look at the descriptions of the ‘Wrestlers’ (figure 8) and ‘Cyclist’ (figure 7) reproduced in these two books, it beggars belief, not just stylistically, to see that a third version of ‘Wrestlers’ as being painted by Goncharova in Anthony Parton’s book. With no provenance or exhibition history, this wooden, colour‐ free version becomes a veritable pastiche when set alongside the detail of a 1910 photograph that some believe may have been its inspiration. “A photograph (fig 9) that seems to have been cut, pasted and transferred onto canvas.”




The artist ridiculed “Her contemporaries were struck by the diversity of her work, the richness of fantasy. She hardly ever repeated a composition” Irina Vakar, Tretyakov Gallery, Moscow Figure 7 on the opposite page is another piece of damning evidence. It is a known fact that Goncharova hardly ever repeated a composition and yet here we have seven versions on a theme. We have a series of bicycles going in a different direction from the original, various automobiles going from right to left on a variety of backgrounds and, absurdly, what is probably the first representation of the pushbike in Western Art History. It will most likely not come as a surprise that all seven have the same non-provenance, ‘private collection’, and none of these miracles were exhibited in Goncharova’s lifetime. Are Western Art historians really so naive as to believe that an artist as revolutionary as Goncharova created seven paintings on the same theme in the space of a couple of years? Signatures “A signature is a major rarity for works by Natalia Goncharova of her Russian period” Had the authors investigated the pre 1915 work of Natalia Goncharova in any detail, they would have discovered that a signature on her work pre 1915 is a major rarity. It almost goes without saying that of the 10 dubious paintings shown in this document; every single one is signed or monogrammed. Selling aids and price Should the authors doubt that these books and their certificates of expertise that proliferate on the Western Art market are used as selling aids, a glance at auctions in Germany over the last 10 years, or France will confirm the facts. It is instructive to note that the estimates for these paintings is a fraction (20%) of what it would have been had the picture been genuine. Coupled to this is the fact that the major London auction houses, the center of the Russian Art market, have long ago rejected certificates from these two authors as well as other members of INCORM. Why? Denouement. In a May 2011 news conference, leading figures in the world of Russian Art including Irina Lebedeva,

Director of the Tretyakov Gallery and Pyotr Aven, a major collector and specialist on Goncharova voiced their accusations openly. In reply, the authors were defended by INCORM whose President, Patricia Railing, is herself an art historian and has just written a book on Malevich with similar discoveries within its pages. This reply was ambiguous and at no point answered the hard questions posed at the news conference nor those that have subsequently been broadcast on the site. ICAAD made a request to have these paintings chemically analyzed to remove all doubt as to authenticity, we also offered to pay all costs, Mrs. Railing replied that these paintings “have “technological” expertise accompanying them by known and reputable scientists which reveal without a shadow of a doubt that the works were not “painted in our time” but were executed at least 60 years ago”. These certificates to which Mrs Railing refers were, in the main, written by Erhardt and Elizabeth Jagers and yet we know that, according to the Press, German police have questioned the former who states in the Russian language version of the Art Newspaper from the September 2013 issue, that ‘if these (dubious paintings) were fakes, they were done extremely well’. A solution offered. In November 2013, the Executive Board of ICAAD sought a final resolution and officially invited Mrs Railing, Anthony Parton and Denise Bazetoux on allexpenses-paid visit to see the Goncharova personal exhibition at the Tretyakov Gallery in Moscow. It goes without saying that no reply was received. ICAAD believes that the time for answers has now come. The Art world at large needs to know the harm such books can do to the reputation of a great artist. ICAAD have requested that all copies of these books be withdrawn from circulation and have reminded Anthony Parton, Denise Bazetoux and Patricia Railing of their responsibilities as art historians. They have also been asked to cease writing certificates for paintings that, on our evidence alone, cannot have been painted by the hand of Natalia Goncharova.




Ashley Farrell and Lauren Kyser

Art connects people and societies, and is a major part of our cultural heritage. Though tastes vary from person to person, almost everyone has a chosen work of art that speaks to them on an aesthetic or emotional level. With the growing numbers of fairs, auctions and galleries throughout the world, fine art is increasingly accessible and collected across all classes. As an example, Dorothy and Herbert Vogel, a librarian and a postal service worker respectively, amassed a collection of over 4,000 works throughout their life together, despite their modest resources, and arranged for works

to be donated to the Smithsonian and other various museums throughout the country. In addition to art’s cultural presence, it is also recognized as an asset class in today’s global economy. Collectors can both invest in and trade art as a commodity, thereby diversifying their portfolio, or they can use their collection as collateral to facilitate bank loans. While there may be some investors and collectors who are primarily concerned with their return on investment, or the blackand-white value on paper of art and collectibles, it is important to consider that many other aspects



contribute to the longevity of its value and appeal. It is common practice to insure and protect our houses, cars, and valuables, but often collections of art, furniture, jewelry, wine, and other collectibles become disorganized as they grow over time. As a result, it becomes increasingly difficult to provide proper care, much to the detriment of the collection. Good condition, proper documentation, and clear title and provenance each contribute to the value of collections regardless of the type of works included. With the assistance of a Collection Manager and the use of a Collection Management System, a strategic plan can be put in place to ensure the maintenance of value and the enjoyment of a collection for years to come. Proper stewardship can be achieved through on-going efforts to preserve the collection. The main principles of collection management center on inventory and cataloguing, proper documentation, provenance, authenticity, continual preservation and care, as well as the effective organization of this essential information. Inventories, especially when conducted by an art professional or certified appraiser, can help ensure the proper cataloguing for works across all collecting categories, while maintaining any relevant documents related to purchase and sales history, provenance, not to mention the literary and exhibition history will support the value of a collection. Once works have been purchased, acquired, or inherited, it is essential to address any physical needs. Collections management includes using professional shipping, storage and installation methods for the works and also proper framing with archival materials. Non-archival material, such as acidic papers, that come into direct contact with artwork can cause unnecessary damage or deterioration that may be irreversible. A Collection manager will ensure annual condition inspections are performed by conservators and other art professionals in order to determine whether works are in stable condition, and will correct any environmental factors that may cause undue harm to the works in the collection. As collections grow, the upkeep of records, inventories, invoices and other important documents can become unwieldy if not properly maintained and the lack of a system of organization can ultimately harm the integrity of a collection. A Collection

Manger, with a Collection Management System, can assure the long term organization and development of a collection. A variety of collection management systems are currently available to the private collector, dealers, and galleries and many systems can be tailored to fit the specific needs and parameters of the collection. Such a database functions as a digital inventory and is the repository for condition reports, invoices, provenance documentation, bibliographic citations, exhibition history, current location, as well as high-quality images of the work. Images are an important component in the CMS, as they preserve a visual record in case of any loss or damage. Systems can also be tailored to include appraisal and insurance values both current and historical. Similar to a museum’s Registrar, a Collection Manager oversees the organization and maintenance of the collection and facilitates relationships with framers, shippers, storage facilities, photographers, conservators, and appraisers. Appraisal services can provide values for various purposes, including but not limited to, insurance, estate tax and planning, accounting, sale marketability, collateral (bank loan), damage or donation purposes, each of which provides an important piece in the system of organizing and preserving the history and value of a collection. As art becomes increasingly accessible to all potential collectors, taking steps to manage and steward our collections responsibly through proper maintenance, staff and systems ensure not only the economic longevity of a collection, but also its beauty and cultural significance for years to come.

Ashley Farrell and Lauren Kyser run the Collection Management department at Winston Art Group, which offers a range of specialized services individually tailored to help maintain and manage collections of fine art, decorative art, jewelry and collectibles. With offices in New York, Los Angeles, Boston, Palm Beach, Houston, Chicago, Denver, as well as London, Geneva and Tel Aviv, Winston Art Group is the leading full-service art appraisal and advisory firm in the United States.


by Alexander Rich

COLLECTION AND PROTECTION I often leaf through two fascinating art books published in the 1960’s and edited by the great art historian Douglas Cooper. Although they have dated, “Great Family Collections” and its companion volume “Great Private Collections” contain a wealth of objects displayed in fascinating domestic settings. They showcase a handful of what would now be called Ultra-High-Net-Worth collections. Some of these are ‘historical’ (amassed thorough inheritance and acquisition over generations) others more recently and more rapidly builtup by single owners. All the collections included were chosen to demonstrate the special importance private collections have in the history of art and how the connoisseur private collector,


without the limitations imposed on public institutions, can go “offpiste” to pursue diverse interests. In the forward to the books, Cooper writes how collections can teach a lesson to “a culturally benighted, confused and eclectic age like our own”. Half-a-century later what would Cooper make of the present day? Technology has made once out-of-the-way auctions and galleries accessible to every collector: new fields of interest in art, antiques and ethnographica are emerging and this, combined with many traditional collecting areas being out-of-fashion and comparatively inexpensive, presents collectors with opportunities such as few periods in history have done before. In the introduction to “Great Private Collections”

Kenneth Clark (“Lord Clark of Civilization”) tries to distil into words what makes a “great” collection – even for him it is very hard. He stresses how “the world owes private collectors an enormous debt. Without them many of the greatest works of art would have been lost or destroyed”. Few would argue, but in establishing a “great” collection the collector has a duty to ensure it is properly looked after: custodianship and riskmanagement go hand-in-hand. No matter how wealthy a collector is, insurance should always form part of prudent risk-management: it encourages diligence and ensures no one has to err about what to do in the event of loss or damage. With effect from 1 April 2017, the UK’s Financial Conduct

Authority [FCA] requires that all personal lines and general insurance firms (this includes art insurers) disclose at each policy renewal the premium clients have paid for the previous period of cover. Many conscientious firms have been doing this for years, but it now becomes compulsory for everyone. This is no April Fool’s Day joke: in addition, the FCA requires that firms include a message that consumers should “shop around for the best deal” and clients who have renewed with the same firm four consecutive times must be given extra encouragement to seek alternatives. When it comes to many things the words “the best deal” and “value” now tend to be synonymous with “price”. When it comes to art they are much more nuanced. The most precious object may have no value: the most valued object may be priceless. One of Oscar Wilde’s numerous witticisms was that the cynic “knows the price of everything and the value of nothing”. A great collector should know both the price and the value of things – but should be principally interested in the latter. This should be equally true of their insurance policy. Most collections take years to assemble but, if disaster strikes, can be wrecked in a moment. While thefts are headline grabbing, they account for less than 5% of incidents faced by specialist insurers. Fires are also rare (though catastrophic when they do occur). The most common sources of loss or damage are escapes of water, accidental damage or accidental loss (i.e. simple cases of misfortune or clumsiness). If anything should happen the collector should ensure they have the help of an

authoritative and understanding insurer. Things need to be dealt with swiftly to ensure works of art are saved for posterity. The insurance industry is highly regulated but not all insurers are the same. Specialist art insurers have additional knowledge when it comes to disaster-recovery access to suitable expertise. Almost all specialist art policies now operate on an “All Risks” basis (i.e. they provide cover for everything other than a few specific exclusions (usually wear and tear/vermin damage etc.). As well as premiums, therefore, these are some of the many things to consider when purchasing an art insurance policy: 1. Make sure you know the “Exclusions” and that there are as few as possible. 2. Check Excesses/Deductibles (the value below which no claim is paid). 3. Find out if modern items are covered for “Replacement Cost” or “The Cost of Refabrication”. 4. Make sure the policy recognises the additional value “Pairs or Sets” can hold. 5. Ensure “Restoration Depreciation” are covered.


6. Check if there are any “Geographical Limits” for items in transit or whether cover is restricted to a “Named Locations”.

1. Keep a database or compile a full inventory or spreadsheet of the collection. 2. Ensure that all items are photographed with details taken of distinctive marks with records of all labels and inscriptions. This not only helps with incontrovertible identification of items but also ensures that such details are kept for future generations. 2. Make digital copies of archive material/photographs/invoices and ensure these are backed-up or kept off-site. 3. Establish a financial “value” for all items. (It is easier to discuss the “Basis of Valuation” before a claim than to try and negotiate this after a loss!) 4. Ask whether there are any imaginative types of cover available (i.e., “Restoration and Recovery”). Alexander Rich is Director of Art Insurance at Richard Thompson Insurance Brokers Ltd. He has nearly 25 years of experience in art insurance and has lectured on the subject to numerous institutions. A collector himself, in 2011 he won the BBC’s ‘Antiques Master’ TV series and in 2014 co-curated “Peace Breaks Out! London & Paris in the Summer of 1814” at Sir John Soane’s Museum in London.

7. Ask whether you can maintain “Rights of Title” for stolen items after insurers have paid a “Total Loss” These are also prudent measures to undertake as part of Risk Management:


THE Rolls Royce ART PROGRAMME Miami-born artist José Parlá’s new work for the RollsRoyce Art Programme was unveiled at the iconic Jewel Box at the National YoungArts Foundation (YoungArts), Miami. The exhibition entitled Roots, was commissioned as part of the Rolls-Royce Art Programme in partnership with the Savannah College of Art and Design (SCAD), and is curated by Laurie Ann Farrell. The site-specific installation of paintings and sculpture is the worldwide debut of the body of work and will be on public display until 15 December 2016. Working together with artists around the world, the Rolls-Royce Art Programme seeks to contribute to the fabric of the contemporary


art world. Through Parlá’s own work mentoring young artists, namely as a ‘Master Teacher’ with YoungArts, he shares an affinity with Rolls-Royce and its legacy of fostering creativity. Rolls-Royce itself is committed to developing future talent at its Global Centre of Excellence in Goodwood, England, where artisans perfect timeless skills in order to create personal, emotive and rare objects of desire for some of the most discerning customers in the world. This exhibition brings the renowned Cuban-American artist back home to Miami Beach, where he spent his formative years in the underground art scene of the 1980s and early 90s. The work in the exhibition

to Baltic, use the street names of places where the artist lived, painted in the streets, and set up studios from Miami to the Bronx, and Brooklyn. Nuevo Rumbo, a 6 by 24 ft. painting, is an abstract landscape of the history of Cuba from pre-colonial times to contemporary history. In its composition, the complexity of layers in the left side of the work can be read as the many layers of difficulty of Cuba’s history. These layers are interwoven with Parlá’s own thoughts ranging from the Spanish Colonial invasion of Cuba and the demise of its native people and culture; to the up-rising of slaves and onset of wars that would lead to the Ten Years War and the Cuban Independence War through Fidel Castro’s Revolution. The mid-center of the painting starts to expand into smoother blends, bridging to the current history of President Raul Castro and President Obama negotiating new relations between the United States and Cuba. A possible new open-ended story starts there. The exhibition will travel to the SCAD Museum of Art in 2017.

receives its connection to the past and present through those roots, and into the branches of Parlá’s family background, his education, life experience, and the serendipity involved in this project. Parlá’s place in his own family history layered against the backdrop of Cuba’s past form the basis for the works in the show. The interior space of the historic Jewel Box, the former headquarters of a Cuban Rum family empire, will be transformed using artificial walls that will complement the existing structure by creating a poetic dialogue between the paintings, sculpture and natural daylight, as it shines through the stained glass panels. Three of the large scale paintings in the exhibition, Patria, Hatuey and 24 de Febrero are named after ships from the Cuban Navy that lent their support in the audacious flights of early aviators, Domingo Rosillo, and Parlá’s grandfather, Augustin Parlá, in 1912. Parlá’s grandfather was one of the first Cuban pilots to make the flight from Key West to Havana. On a more personal approach to painting, the works Eureka to Flagler, Whiteplains to DeKalb, and Ashland

José Parlá joins renowned artists Sudarshan Shetty and Yang Fudong as a member of the Rolls-Royce Art Programme in 2016. Rolls-Royce recently celebrated a successful launch of Sudarshan Shetty’s commission for the Art Programme in November 2016 in Mumbai. Yang Fudong’s commission for the Art Programme will be launched at the Shanghai Center of Photography, Shanghai, in December 2016. Rolls-Royce is committed to creating unique and aesthetically powerful motor cars, which transcend the world of conveyance to become works of art themselves. Their starting point is a moment of artistic inspiration, which is executed at the hands of the world’s most revered craftspeople using only the very finest materials. Marc de Panafieu, Jaeger-LeCoultre’s brand director Middle East, India, Turkey & Greece said: “The Reverso was originally designed for polo players to wear during the game so Jaeger-LeCoultre has an organic relationship with the game of polo. It is a pleasure to be here in Dubai once again with our friends from British Polo Day for one of the most important polo events of the season in the UAE”.


THE ART OF COLLECTING The art market, like many markets, is a complex business and difficult to navigate without intimate knowledge. The range of avenues to choose from when beginning a collection can be overwhelming often leading to poor purchases, and collectors find themselves with works of lesser quality or in poor condition. A professional and independent art advisor provides clients with deep insight into the art market and enables them to seek out artworks that resonate with their passions whilst making shrewd investments. Though the two pursuits overlap in their practices, a collector’s approach will differ immensely from that of the investor. Whilst the investor seeks to engage with art as an asset class in order to safely capitalise in a market that has proven resistant to the twists and downturns of the economy, the collector’s concerns, tend to be more aesthetic and passion led whilst obviously keen to make safe investments. Starting a relationship with an independent advisor means that the buyer has someone who is wholly on their side,


helping them look with the utmost scrutiny and care at works that may very well change their lives. Building an art collection can be slow, but the rewards are plentiful and go far beyond monetary returns, in the words of Lord Gowrie, chairman of the Fine Art Group and former Chairman of Sotheby’s: “Art augments your life, it has a sort of radioactive power”. One needs the time to understand one’s own appreciation of art; there are academic, aesthetic, cultural (counter-cultural) and historic aspects to take into consideration. When drawing upon his many years of experience former art dealer and current Managing Director of The Fine Art Group, Guy Jennings, was persistent in his counsel to wait and observe: “The best advice I can give to a new collector is to look and look and look, then to go home and look again. Look in museums, galleries, auctions, online, privately…only then can you fully understand what is available and what you truly want.” He continued: “One needs to find a balance between collecting purely

for passion and collecting with a view to what will last. Some things are more fragile; some things are more stable – where will taste be in twenty, thirty or forty years’ time?” Timing, therefore is perhaps the most vital element in collecting and investing and in more ways than one; patience can translate into a veritable virtue upon which the collector can capitalise in the art world. Knowing when the market is most ripe to buy or sell whilst with a view to the future, knowing which works (especially if one collects Contemporary art) will stand the test of time. Expertise in these matters is invaluable, dedicated art advisors have observed patterns in the market and fluctuations in taste. They can help to tell the difference between whether an artist’s reputation is all smoke and mirrors or whether their impact will have a lasting effect upon the fabric of art history and of the art market. In other words, an advisor specialises in decoding that all too mysterious concept of ‘value’, helping the client to appreciate where or what is the true value of art? “When buying, one


always has to look at value for money, but value is a much broader concept than one might initially understand. Value doesn’t reside just in financial value, it resides in aesthetic value, in art historical importance and, of course, it resides in money. Value is a many-sided concept that needs to be looked at from all sides at different times in order to properly maximise and understand it.” Jennings was insistent upon this point, no two works are alike, just as no two sales will be. Disparities occur on every level of the art market; whether a buyer seeks to invest in hyper Contemporary works or prefers a more conservative approach through established Modern artists. Both have the potential for great success and depending on which avenue the client chooses to explore will decide the expertise of their advisor, their market insights, and determine their entire buying strategy. “If there’s one thing I can’t stress enough,” says Morgan Long, Senior Director of The Fine Art Group, “It’s that research and expertise are the best investment you can make in the art world.” With illumination ultimately comes gratification. By Rebecca Jennings, Head of Research The Fine Art Group.


Art with an iPad When UK based artist Derek Culley found that his CMT (Charcot-Marie-Tooth) caused him problems painting with oils or acrylics while standing at an easel, he faced a crisis of confidence. He wondered whether his loss of grip strength and the fatigue in his “jelly legs” would end the only profession he had ever known. His answer came while watching a documentary on the artist David Hockney, who uses the Brushes app and a stylus to “paint” on an iPad. The documentary spurred Culley to try his hand at digital art. The medium took some adjustment after so long working in paint on canvas or paper, but after a period of trial and error, he found that he had a new way to make art. Born in Dublin, Ireland, Culley “caught the bug” from his art teacher at the age of 15 and had his first studio at the age of 16. The studio was a garage in the alley in back of his house, and he worked at a local bar cleaning and serving drinks to pay for it. Culley started at Dublin’s National College of Art and Design but only lasted three weeks because he didn’t like his fellow artists. A series of “food on table” jobs followed while he taught himself art. He later completed a master’s degree in marketing at Brunel University, concentrating on the visual arts in Britain. Culley has participated in numerous group shows and solo shows since 1986 and is a recipient of a Pollock-Krasner


Foundation Grant for artistic merit (New York $25K) in 2006. According to one critic, Culley is known for his instinctive approach, which “combines a bold primary colour palette and expressive handling of form to create paintings of undeniable power.” Culley demonstrates a strong influence from the New York School, this critic said, and his admiration for painters like Jackson Pollock is readily apparent in the composition of his abstracts and the energy of his mark making. Culley didn’t discover that he had CMT until he was 40. Culley needs orthotics to walk. He has chronic fatigue and greatly impaired balance. His arms are withering away, his hands are losing strength and grip, and he can’t hold a knife or fasten a button. On the plus side, he says, he no longer has to wash the dishes. Making art on an iPad takes a lot of patience, Culley says. But it has restored his confidence and forced him to think outside the box. He now does ink-jet prints on canvas, paper and acrylic panels. With the technology of the iPad and the Brushes app, he can replicate images and make a series using the original iPad painting as a template Culley completed a Masters degree in marketing at Brunel University from 199294, concentrating on the visual arts in Britain. Prior to this, Culley was a founder member and chairman of Celtic Vision alongside

The Brush complimented with Brushes App and the iPad.


Scottish painter John Bellany and the South African abstractionist Denis Bowen, with whom he exhibited in 198687. As a self-taught artist, Culley adopted colours like cannons of light that he vigorously applies to the painting’s surface, developing a signature style. This has led him to participate in numerous solo shows including Derek Culley Paintings, The Atkinson, Southport, 2016; The Irish Club, London, 1996; and Five Years of Culley The Royal Hospital Kilmainham (now IMMA), Dublin, 1989. Group exhibitions include the Skopje Museum of Contemporary Art, Republic of Macedonia, 1996; Modern Irish Painting, Dillon Gallery, 1995; 2000 Years Celebration, Customs House Dublin, 1991; Knapp Gallery, 1988; and The London Group tour, 1987. Invited for the inaugural exhibition in the Landing Gallery at The Atkinson, Southport, 2016; Culley exhibited Brushes Odyssey, a collection of six animated drawings with Sedition Art, created using the iPad.


BRINGING ART TO LIGHT TM Lighting is the designer and manufacturer of a new generation of LED lighting products for the art world. The company has reinvented classic picture light design with the very latest lighting technology to create specialist luminaries that deliver vastly superior art lighting with a true representation of the full spectrum of colour, for private collections in residential homes and historic houses. Using the same technology, TM Lighting has enhanced its product range to extend its offering to other art lighting products, including a collection of spotlights, to meet the needs of galleries and museums. The result of their continued research and investment is a range of products that matches and often surpasses museum-grade lighting in terms of light quality and light distribution. What sets TM Lighting’s simple and unobtrusive lighting fittings apart from their competitors is the emphasis on colour accuracy, achievable with a unique balance of colour rendition, colour temperature and colour consistency. “In the past, the old tungsten filament bulbs didn’t light the picture well and would leave a glow at the top of the fame”, says co-founder Harry Triggs. “The colour was too warm which distorted the colour of the painting, and the heat from the light damaged it. What distinguishes our products is the quality of the light and the quality of the LEDs”. TM Lighting was founded by Harry Triggs and Andrew Molyneux in 2012 after a combined career spanning over 30 years in the industry. The pair met at Brunel University where they


Andrew Molyneux and Harry Triggs Co-Founders of TM Lighting

galleries, National Trust homes and historic houses such as: Burghley House in Lincolnshire, Weston Park in Shropshire ,Waddesdon Manor in Buckinghamshire, Goodwood House in West Sussex and the public and private domains at Apsley House, the home of the Duke of Wellington. The pair proudly say: “name an artist, and we have most likely lit a work by them”. “We knew the changes would be an improvement, but we could never have imagined how much of a difference the new lighting would make. We can now really see the depth of colour and detail in the paintings, but most importantly they are not over-lit, and the atmosphere of the house has not been compromised”. Miranda Rock, Guardian of Burghley House

Image interiors: TM Picture Lights at Weston Park

both studied Industrial Design and after pursuing different careers, Triggs as a lighting consultant and Molyneux as a product designer were reunited by their shared obsession for art and lighting and a desire to innovate. Their combined experience, passion and an innovative product idea formed the perfect foundation for TM Lighting, and after numerous impassioned discussions, the idea for a picture light stuck. TM’s investment in continued research led to well-deserved early success with their debut product the TM Picture Light, which was highly commended in the Best Interior Luminaire category at the 2013 Lighting Design Awards. In 2015, their products were nominated for

three further awards at the FX International Interior Design Awards, SBID International Design Excellence Awards and World Interiors News (WIN) Awards. Providing an effective response to the latest energy saving legislation TM Lighting’s LED lights create an energy efficient solution while providing full spectrum, high colour rendition lighting with an even light distribution. Central to the company’s success is their understanding that each client, artwork and situation is unique. They work closely with the buyer in order to provide a bespoke lighting solution that brings art to light. In addition to lighting private collections, TM Lighting has been commissioned for a number of prestigious projects in national museums,

Visitors to Weston Park are thrilled by the difference that the TM Picture Lights have made, both in terms of the ability to see the works clearly in a conservation-friendly way and to the difference that the layered lighting has made to the aesthetic of the rooms themselves which now have a great sense of life and vitality to them.” Gareth Williams, Head Curator at Weston Park The main objective of TM Lighting has always been to provide museum quality lighting for the home. However, they have developed new ranges for use in contemporary retail environments for clients such as Selfridges, Christian Louboutin, and Fiona BarrattCampbell’s Pimlico Road interiors shop FBC London. “To be able to see an object, light must bounce off it. If that light only has 80% of the spectrum of colour in it, then you will only see 80% of the true colour of that object - so it may appear dull, or faded”, says Triggs. “The perception of colour in an artwork is our eye perceiving the light reflected off a canvas”. TM Lighting uses full spectrum, high colour rendition light which is made up of all the colours of the rainbow and allows items like sofas and clothing, as well as sculptures and paintings, to be appreciated in their full glory.


A silk weaving of Carquillat presenting a weaving of Joseph Marie Jacquard to the Duke of Aumale (woven in 1844 by Carquillat, Lyon, France)

The National Silk Art Museum, 423 Main Street, Weston, Missouri 64098

Queen Victoria & Sons (woven in 1863 by Thomas Stevens, Coventry)


Prince Albert & Daughters (woven in 1863 by Thomas Stevens, Coventry)

Declaration of Independence (woven in 2016 by Cammann Gobelin Manufactory, Dresden, Germany)

The King’s Art Rediscovered

by John Pottie

The Roman Catholic Church both dominated and controlled the art world throughout the 15th and 16th Centuries. But in the 17th Century, the King of France started to introduce to all of Europe, as well as many other parts of the world, works of art when he commissioned a revolutionary new manufacturing concept that is now commonly referred to as mass production. This all came about when during this time, many wealthy princes and noblemen began abandoning their large feudal castles for smaller, more comfortable residences. And as they did this, they discovered that their extremely large, traditional wall tapestries that once adorned their castle walls were much too large for the new abodes. So, they sought after smaller tapestries, which did not exist. In response, Louis XIV (16381715), King of France, “The Protector of the Arts and Letter”, commissioned in 1662 the Royal Tapestry Factory

in Paris which was operated by the Gobelin family, to produce secularthemed artistic tapestries that would be used as status symbols to enhance the magnificence of his noblemen’s houses. These tapestries would soon adorn state rooms, galleries and drawing rooms and many were sent abroad as treasured gifts to other crowned heads and royal courts. Louis XIV sent these smaller tapestries all across Europe, as a means to advertise the greatness of his reign and to demonstrate his superior artistic tastes. At his command, the tapestries must be of the highest quality, beauty and splendour. To achieve this, the Royal Tapestry Factory used only the finest of silk fibres. Owing in large part to the durability of silk, many still exist after all this time and are in surprisingly excellent condition. But no single collection existed, and they were individually scattered throughout the world. As a unique art form, they were


Silk weaving of “Columbus First Sight of Land”, woven in 1892 by Jewels List of Crefield, Germany. largely forgotten – until, in 1980, John Pottie discovered his first Jacquard silk tapestry in an antique shop in Milwaukee, Wisconsin, USA and began an exhaustive 30-year quest for these treasures in silk, and countless hours spent in literary research. In 2003, John founded the Museum of Fibre Arts, Inc. dba National Silk Art Museum which is located in Weston, Missouri, U.S.A. The museum achieved its nonprofit status in 2014. Today, there are over 500 pieces on display, with a total collection of more than 650 items. Quite an achievement when one considers the fact that only the Musee Arts & Industrie in St. Etienne, France and the National Silk Art Museum are the world leaders in this art form, and only the National Silk Art Museum has their entire inventory on display for viewing. The museum today serves as a conservancy of history, technology, and lost art. The production process is not taught anywhere today, and visitors to the museum are amazed to learn that each silk tapestry began as a handdigitized replica of an original oil-on-canvas painting. Most likely, a painting that has been lost or destroyed through time. Indeed, documentation of the original paintings have only been confirmed for approximately ten percent. In other


words, approximately 90 percent of the weavings in this collection are the sole evidence of the until now unknown existence of a particular work by one of more than 90 masters. Lost art – discovered and preserved in silk which has survived nearly 200 years. The subject period theme of many of the original art works is largely a depiction of aristocratic life, but there are also several religious themes, as many weavings were also commissioned by the Catholic Church. In addition to the aspect the discover of lost art, these tapestries also serve as examples of a work product of a largely unknown and practically forgotten technological invention that literally shook Europe to its very foundations. It was, in fact, the precursor of the Industrial Revolution and would eventually lead to the birth of the Information Age of the 20th century as the predecessor of the modern-day computer. It all began with a weaver of Danzig in 1529 who initially invented the automation of the standard textile loom. Sadly for him, it resulted in his death when he was thrown into the river under the charge of heresy. Civic leaders at the time feared his invention would result in massive unemployment. Eventually, his automation technique would become legal,

but not until 1661. It was at this time that King Louis XIV called upon Charles Le Brun (1619-1690), who was considered to be the undisputed Master of Art, to codirect Pierre Mignard (1612-1695). Mignard was the first to take an oil painting on canvas and reproduce it in woven silk. Charles Le Brun introduced new rules which allowed that if an artist was also an employee of the manufactory, then a weaving of his painting could then officially be called a tapestry. If the artist were not an employee, then the weaving would be called a ribbon. A maximum production limit of four was established for tapestries, whereas ribbons were unlimited. Later, in 1725, French weaver Basile Bouchon invented the perforated paper roll (the paper roll would ultimately be re-introduced in 1847 by Alexander Botir for use in the player piano). Three years later, French weaver Jean Baptiste Falcon employed a chain of individual cards instead of the paper roll. In 1745, Jacques Vaucanson would create the world’s first automated loom when he applied a griffe to the Falcon loom as head motion. But it would be another French weaver, Joseph Marie Jacquard (1752-1834) who would later be credited as the inventor of what would eventually bear his name – the Jacquard Loom, while Bouchon, Falcon, & Vaucanson would become simply a footnote in history. Even more overlooked, is French weaver Francois Michel-Marie Carquillat (1802-1884), who introduced a new era of silk weaving. While an oil painting on canvas is largely two-dimensional, Carquillat was the first to incorporate optical mixing, reflection, interreflection and pointillism to his weavings. Carquillat’s techniques made three dimensions possible in weaving (height, width & depth), as well as a fourth dimension - the ability of the weaving to convey feeling and emotion. A 5th dimension exists

on the reverse side of the weaving as a reverse negative. Carquillat would weave only 17 patterns in 46 years, while Neyret Freres (whose work flourished from 1899 to 1920) wove an estimated 100 different patterns. Much more common are the English weavings of which Thomas Stevens (Stevengraph) of Coventry set the standard. He began with bookmarks in 1862 and silk pictures the size of bookmarks in 1879. The English, for the most part, created their own artwork, and their weavings were intended for the common, mass market, as opposed to the French, which were for the very wealthy and elite. Stevengraphs flourished from 1862 up until the bombing of Coventry in 1940. Today, Stevengraph flourish in the collectors’ market because of the work of Mark Cottrill of Lymm, Cheshire, England President of Stevengraph Collectors Association and his American counterpart John Hartwig of Orchard Lake, Michigan, U.S.A. Of today’s weavers, the standard barrier is currently German weaver Cammann Gobelin manufactory of Dresden, Germany. Established in 1886 and reworked from original art by Neu Pillinitzer Werkstatten (npw). The National Silk Art Museum has multiple themed galleries such as the German Gallery, World War 1 Gallery, Chinese Gallery, French Gallery, Carquillat Gallery, English Gallery, American Gallery, Children’s Gallery, and Religious Subjects Gallery. There is also a Napoleon Exhibit, Mythology Exhibit, Royal Family Exhibit, President’s Exhibit, World’s Fair Exhibit and Japanese Exhibit. The museum also boasts an extremely detailed Educational Gallery and rare book art library that includes a complete set of the Grove Art Dictionary. The National Silk Art Museum is open to the public.

Queen Victoria (woven in 1841 by Calidott & Barton- Coventry)

Victor Hugo (woven in 1882 by Carquillat, Lyon, France)


Investors can get the most value out of their art investments

Investors may consider investing in works of art to diversify their portfolios or to use their art collections as a financial tool (i.e. as collateral for a loan). If you are an Investor or collector about to dip your toe in the art market, there are two things you need to keep in mind. Firstly, don’t underestimate the unusual characteristics of the art market. Secondly, in order to navigate the market successfully, you’ll need to set clear expectations with your art advisors. 1 The art market is unlike the financial markets Although the art market may be similar to financial markets in principle, it is very different in practical terms, partly due to its unregulated and opaque nature. Aside from the fact that art is an illiquid asset and risky from a title and authenticity perspective, your


biggest problem as an investor is a lack of reliable price data. The generally accepted estimate is that about fifty percent of art transactions are conducted at auction and the remaining fifty percent through private sales and galleries. Although auction results can be found online in price databases such as, numbers for private and gallery sales are not readily available. Additionally, auction records alone are not sufficient for determining an artwork’s current market value. For example, a painting may have generated an unusually low hammer price because it has been unfavourably restored or had been offered at auction and failed to sell a year earlier (collectors and dealers like artworks that are ‘fresh to the market’). This may lead you to believe, mistakenly, that the similar painting you want to buy is worth less than it actually

is. Artworks are not traded as frequently as stocks or bonds. It can take an entire generation for an artwork to come back to the market. Therefore, repeat sales are not always available nor relevant. Lastly, many investors don’t realise that the record prices achieved at the major auction houses are not representative of the middle and lower ends of the market. The fact that Picasso’s ‘Plant de Tomates’ sold for just over GBP 17 million (incl. buyer’s premium) at Sotheby’s earlier this month, does not mean that all his works do, for reasons beyond the scope of this article. Therefore, although analysing the numbers is absolutely helpful in understanding the part of the art market you want to invest in, it does not paint the entire picture. 2 Managing expectations with your art advisor Another unfortunate result of the unregulated nature of the art market is that anyone can call themselves an art expert. You don’t need certificates or licenses to operate as an art advisor, dealer or broker. There are many competent and honest art professionals out there, but as an investor, it is not always easy to tell the difference. You need to do your due diligence and ask questions.

Annelien Bruins COO Tang Art Advisory

You need to know, for example, whether your advisor, dealer or broker has a conflict of interest in relation to the transaction they are advising you on. Is your advisor also acting on behalf of the party on the other side of the transaction? Transaction and holding costs for art are exorbitant at the best of times, so you don’t want to lose money as a result of undisclosed commissions. Does your art advisor receive a kickback from the auction house they referred you to for the sale of your collection? And is the person who appraised your art also interested in getting the work on consignment? If so, they may be incentivized to lowball your appraisal. You need to ensure that your advisor acts in your best interest and if they cannot, for whatever reason, they should disclose this. Managing expectations from the start will avoid disappointment later on. If you are working with a professional, they will have consignment and advisory contracts that clarify the terms of your agreement, including, but not limited to commissions, duration of the agreement and who pays for expenses. It may be worth hiring an art lawyer who is familiar with the peculiarities of an art transaction, particularly if a lot of money is involved. Annelien Bruins is COO and Senior Art Advisor at Tang Art Advisory. The firm provides its private clients with advice on the buying, selling and managing of their collections of fine and decorative art.


Art money, smart money

By Professor Neil Powell Over the past three decades, art buying has grown steadily in the volume and magnitude of transactions worldwide and on past evidence there are few signs that this growth will abate. So what are people buying and, if you are an art lover, are you alone in wondering where might you best invest that venture capital or home décor budget, regardless of how modest, or indeed immodest, that sum may be? On recent evidence, the tendency to stash one’s cash in the safe haven of Old Masters seems to have shifted and maybe for good. During the last decade, the biggest growth area in terms of sales volume and profitability has, without a doubt, been in the area of Modern Art, particularly Post-war and 20th Century contemporary art. The global art market contracted slightly in 2015 for the first time in half a decade. Nevertheless, there were still declared global sales of artworks from all major sectors in that year amounting to around $64 billion and whilst this compares unfavourably to the $68 billion generated in 2014, it is still a very hefty sum indeed. So, let’s start by following the money, but before doing so, I would like to acknowledge the expertise and insight of Alexander Forbes of Artsy and Robert Read of Hiscox for market insight which has shaped my thinking, and which is cited below. In 2015-16 many of the major auction houses sought to manage market expectations and issued profit warnings as they anticipated an economic slowing of the BRIC economies.


Nigel Hall, Drawing 2016, courtesy of the artist/Annely Juda Fine Art

This reality check was justified as 2014-15 saw China’s art market contract by almost 25%. In contrast, over the same period, the US saw a 4% increase in market share to account for 43% of the world’s art sales (some $27.6 billion), a figure almost double that of the second-largest market, the UK, with sales of around $14 billion. We should also note that, despite the decline in the overall value of 2015 sales, the number of individual sales transactions actually increased, or at least declined proportionately less, by around +2% compared to the -7% fall in absolute fiscal terms. Behind these headline figures for the top three, the market also saw the number of sales of artworks priced above a million dollars increasing at a faster rate than other price brackets. Statistically, the top, super-rich 1% and 0.1% of art investors had the greatest impact on the market, with almost 60% of all revenues generated from individual works retailing with a $1 million+ ticket. If you thought this was extreme, then almost 30% of total value of artworks sold worldwide during 2015-16 (some $21 billion) were ‘big ticket’ items with individual price tags of $10 million or more. Highlights (or low points, depending on how you see it) in the period 2014-16 were the sale at auction of Picasso’s ‘Les Femmes d’Alger’, from 1955, which sold for $179 million at Christie’s New York and Modigliani’s ‘Nu Couche’, which fetched a modest $170 million by comparison. Before we get carried away however, the art market, like all markets can and does go down as well as up, so ‘Buyer (and Seller) Beware’, should never be far from one’s mind. While the astute purchaser of Richard Smith’s ‘Another Place’ (1959), paid a modest $2,700 in 2006, selling a decade later for $44,000, such yields of +1,500 % are relatively few and far between. Weigh this against more sobering tales such as Tsagolov’s ‘From the series of office affairs’ (20089), acquired at its market Zenith for $54,000 in 2009, only to sell at the, ahem, affordable bid price of $1,700 in 2016. Such losses, whilst salutary, pale into insignificance when calibrated against the investor who saw a $60 million depreciation in investment over 8 years with a single work at the 2016 auction of Paul Gaugin’s ‘Te Fare (La Maison)’ (1892), realising $25 million on the item previously bought at auction for $85 million in 2008. The elephant in the sale room is now the online market and just in case you think that this comprises a few tatty posters on eBay or shabby-chic old masters from Sotheby’, then think again. Online art sales are running at almost $5+ billion p.a. (some 7%) of the global market, and this is growing fast. Online sales analysis conducted by Invaluable shows that in 2015-16, roughly a quarter of all art purchases by volume were made online, with an increasing number of these being above the $10k tag and around 40% of purchasers being first

or second-time buyers, aged between 18-34. According to the Hiscox Online Art Trade Report, if current trends continue, the online art market may well approach or exceed $10 billion by 2020, perhaps accounting for 40% of market turnover. To substantiate this figure, Hiscox also found that 40% of visitor traffic to art websites, galleries, museums, dealers and auction houses, originated from mobile browsers, namely smartphones or tablets, with around one-third of online art deals being transacted to completion from mobile devices. Anecdotal evidence also suggests that seasoned buyers and apprehensive new entrants to the market may prefer the relative anonymity of online buying, to the stress of showing their hand at a live auction or cognoscenti face-to-face sales environment. While social media sales of artworks are only in their infancy with Instagram-based $24 million sales of works such as Basquiat’s painting of the boxer Sugar Ray Leonard in November 2016 being rare, I would argue that instances such as this are bound to increase. Artsy, MutualArt, Saatchiart. com and the rest, are gearing up as they cultivate the new market driven by the affluence and unprecedented digital literacy of 18-34 year-olds. In my view, online outlets with recognised artists and authenticated stock are the ones to watch as well as being the ones that serious buyers and collectors will price-compare. In summary, an investment in works by ‘name’ artists from 1945-2010 seems like a reasonable punt, or a punt that I would, and occasionally do make. Nevertheless, there are a few things to remember: Never set your heart on a piece of work to the extent that you go way beyond estimate or valuation; research the artist and seek out professional advice; find out if the artist is early, mid or late career or recently deceased (this sounds cynical I know); buy from a reputable dealer and get a certificate of authenticity; once you have it, insure it, look after it; if the deal seems too good to be true, then it probably is. Finally, buy something you love and you’ll never be disappointed. Neil Powell has written and exhibited extensively internationally, with past projects including a major show of Art & Language at MoMA PS1, New York, (with Professor Michael Corris) and exhibitions with Hans-Peter Feldmann, Michael Craig-Martin, Jake and Dinos Chapman, Avis Newman, Coracle Press, Alfredo Jaar, John Craske, Roger Ackling, Ana Maria Pacheco and Ian Hamilton Finlay. He participated in the curator selection for the latest edition of the national touring exhibition, the British Art Show 8. In 2016 Powell was appointed to the Board of the Museum of Contemporary Art, Beijing, China.


Russian Art + Culture Under New Ownership in the centenary year of the Russian Revolution

Think about Russian art and probably Malevich and the Avant Garde proponents come to mind or perhaps the heroic icons of Socialist Realism such as Repin. Such artists however, are merely an amuse bouche. With a Eurasian land mass supporting 190 ethnic groups, Russia’s culture offers so many undiscovered delights and the centenary year of the 1917 Revolution is the right time to become more educated. As the Royal Academy launches Revolution: Russian Art 1917-32 and The Design museum launches Imagine Moscow there is much to absorb leading up to the important Summer


auctions sales. Where then, can one seek out the most reliable, current and comprehensive cultural gen on the world’s largest nation? Russian Art + Culture is the only dedicated information hub in London, the place to familiarise oneself, both about the world of fine art and also the wider culture of the CIS region. A global platform for all things Russkiy, Russian Art + Culture started in 2011 as a student blog for the non-indigenous population. Now acclaimed as one of the Top 10 culture sites, it has rapidly developed to serve 50,000 visitors a year through what is the largest Western

knowledge centre offering a magazine, jobs board, events and extensive business network. Moreover, it is the host organisation for London’s all-important Russian Art Week and is under new ownership. Family Office Magazine met up with Natasha Butterwick its new CEO to find out about her development plans and to learn why Sotheby’s, Christies, Bonham’s and the top dealers and galleries have gathered under its auspices. Energetic, charismatic and vibrant, Butterwick is a business woman, established art dealer and a Muscovite – seemingly perfectly placed to take on the challenge. The first of such challenges is development of a more viewer-friendly, vibrant website offering access to book launches, talks, performance, exhibitions, ballet, music and theatre. Following on from this is Russian Art week a key event in London’s social and cultural diary which happens in June and November each year. The dates are pertinent, co-inciding with the Russian art auctions and a period when Russian and other visitors descend on the city for the sales. She states: “All Londoners and visitors to England should grasp the opportunity to encounter previously little-known artists. The RA for instance, has introduced the artists of Russia which are unknown or less known in the west such as Aristarkh Lentulov, Pavel Filonov and Alexander Deineka. The RA has been instrumental in bringing artists such as this to the fore in its Spring exhibition

and we are working with organisations across the UK to help to promote these events throughout the year” What does this biannual event have in store specifically for Family Offices? Russian Art + Culture has developed sound relations with the auctions houses and galleries and will be organising tours around the sales to present the highlights and educate audiences. Family office members can enjoy lectures, talks and art trips. Also, to be organised in association with Family Office Magazine, are invitations to opening parties and privately curated tours with special previews of the Russian auctions sales. In most cases, there is the opportunity to meet with Natasha Butterwick directly to learn more about art from the CIS and former Soviet region and advice on where to start building a collection. Many family offices are working with families with art collections or who buy fine art for investment purpose and an understanding of this increasingly popular genre will be useful; so too the opportunity to meet some of the key players in the world of Russian Culture. For more information, call 0044 203 691 4508 or visit: to keep abreast of activities and to have a chance to get involved in the organisation. by Pandora Mather-Lees


Pop Renaissance Bringing 15th century Art into a 21st century Vision “POP Renaissance”

Award-winning photographer Stephanie A. MacKenzie, is a vibrant talent. Multiple layers, brilliant colours and intricate designs unite through storytelling and blended archetypes bringing lush dimensions to her work. Deriving inspiration from her surroundings, MacKenzie is always dreaming up her next piece even when surrounded by the banal sights of life’s daily routine. Creation of each piece requires MacKenzie to draw on all her traditional art studies of drawing, painting, and sculpture, as well as her extensive computer skills. The process of producing each piece is complex. Models, costumes, lighting, set and storyboards are important elements in the early stages before digital technology is applied to create the final Arts. After being printed on canvas, MacKenzie’s original works are hand-embellished by adapting and using acrylic paint and gel mediums to create her multiple dimensional unique originals using a method influenced by the famous chiaroscuro technique developed in the Renaissance period. Inspired by imagination and felt in every brush stroke, MacKenzie’s dreams come alive. With a solid, cutting edge education at Sheridan College, she is spawning an avant-garde Art movement called “Pop Renaissance”. Intertwining Art & photography with today’s advance computer technology, bringing 15th-


their dreams. I was honoured to be chosen to participate and help change young lives who have struggled due to circumstances of no fault of their own.” The Prince’s Trust is listed as one of the most successful funding charities in the UK and has helped thousands of young people turn their lives around. They believe in helping the many undiscovered young talents, encouraging them and providing them with the tools they need to confidently work towards success. Celebrity ambassadors of the trust are involved by visiting during courses and programmes, hosting and helping fundraising events and supporting campaigns for the Prince’s Trust. Bryan Adams, Beyoncé, Jeremy Irons, Kevin Spacey & Benedict Cumberbatch are a few of the many celebrities that have believed in this charity. With three suitcases and her camera by her side, Mackenzie got a one-way ticket from Toronto to the largest hot spot for Art leaving her family and friends behind to pursue her dream. Now residing in Paris, France, Stephanie is working internationally. Her award-winning Art has been published globally & displayed in galleries in London, New York, Paris & Toronto.

century art into a 21stcentury vision. MacKenzie’s creative heritage begins with her great grandfather Branco Stojanovich who journeyed to France to study fashion design during the opulence of 1920s Paris. Stephanie was born in Toronto Canada where her grandfather Alexander Anfilov, an Artist and designer himself, taught her to draw from the age 5. While driving to Florida, her family saw the precise pencil reproduction she made of characters in the book she was reading. Immediately

the car was directed towards the closest Art store off Interstate 75 to purchase her first drawing book and set of Derwent graphite pencils. From that point, Mackenzie never stopped creating. Her Art is gaining recognition & being collected on a global level & has been showcased for donation alongside His Royal Highness The Prince of Wales, Sir Peter Blake CBE RDI, Pierce Brosnan OBE, Nick Park CBE & Darren Baker for The Prince’s Trust charity in London UK. “My goal is to use my Art to inspire & help people to continue to go for

I invite you to sit back, relax, and surrender into unconsciousness to experience the surreal dreaminess of Stephanie Mackenzie’s “Pop Renaissance” Art.

Stephanie A. MacKenzie


Thomas Ostenberg Figurative Sculpture as a Form of Expression Not Representation When I first studied sculpture at the Kansa City Art Institute, I expected to express myself in the abstract with geometric and perhaps fluid organic forms. Isamu Noguchi was a hero of mine and I thought his art would have a significant influence on my work. I loved the simplicity and the poetry of his expression. I did try to emulate him early on as I fell in love with stone carving. The physicality and handling of the tools were mesmerising. I came to feel that the cliché that the stone tells the artist what it wants to be was, in fact, true. But soon after I was introduced to clay, wax and bronze casting, my initial intentions went “out the window”.

I grew up on a ranch in Colorado. I found that as soon as I began playing with clay and wax, all these “farm animals” began to appear. But I was not interested in the least in making animal portraits. The universe is already populated with enough sculpture of horses, elk, bears, dogs and cats. By the time I began my studies at The Royal College of Art in London, I had decided I would use the figurative form as a metaphor, while hopefully achieving the poetry I so admire in Noguchi’s abstract work. I began making sculpture as I approached the age of forty. I previously had enjoyed a successful career in the international finance sector. Because of my mind-set, the move to leave a stable and well-rewarded career for the pursuit of making art seemed natural at the time if also a bit risky. The motives and driving forces of this change


were to become the source of the primary inspiration for my sculpture. Rather than focus on the accumulation of material ”things” as a sign of success, my goal became to obtain a sense of emotional and spiritual equilibrium that brings about a sense of tranquillity and happiness. Based on personal experience I have come to believe that thought, when acted upon, is transformative and very powerful. In my search for equilibrium in precarious situations (be they emotional or economical), a moment of significant radical insight brought about - not by a modification in material circumstances - but by a simple change in thought and the way those circumstances were perceived changed the essence of that situation. And it revolutionised my life. I became an artist. With my sculpture, I aim to stimulate emotions, feelings

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survival. (Ergo, the rickety platforms at the base of my sculptures.) The American author George Saunders has said, “We seem to be born to love — that seems to be what we do naturally and what we crave to do. But then all along, we sort of know that everything is conditional. So how do you, in this world, live joyfully and productively in the face of those two truths?”

and the imagination. I want to create an atmosphere conducive to achieving a sense of well-being, happiness and joy. In creating a sculpture, I usually think of an animal (often but not always horses) as a symbol of The Greater Human Condition. This figure is perched on some sort of rickety, unstable platform - often spheres or wheels. But then I place an upper most figure balancing on the animal form which is secure and confident, exhibiting a mental and emotional control over his/her circumstances. In all cases, my figures are meant to express an inner emotion and not a realistic representation. The material world is a tough place to exist. It seems that we are constantly faced with challenges that threaten our well-being. Financial, health, relationship, career and many other issues clamour for our attention so that daily life often feels like a struggle for

I think the answer is in focusing thought on the basis of what all great philosophical and religious thinking has been declaring for a millennium, overcome fear and ignorance by focusing on the best of human nature. Overcome evil with kindness. Confront greed with charity. Begin each morning by considering (meditating?) on what good you can bring into the world that day. Consider that maybe the idea that love could actually be a political force is obtainable. Abstract sculpture is very much in vogue today and has been for a long time. I find in most cases, while I can appreciate the creativity and effort expressed in these works, I rarely feel a significant emotional attachment to them. By using recognisable forms in an unusual juxtaposition, I aimed to achieve the beauty and poetry of the abstract form but charged with the emotional power that a more familiar imagery encompasses. I strongly wish to communicate through my art. By stimulating emotions I want to establish an atmosphere that allows the viewer to feel and experience concepts they might find meaningful; something

which is rarely felt with straight forward representational portraiture. With much contemporary art irony, shock, cleverness and pessimism are put forward as being profound, intelligent and realistic. In many cases the dialogue is inward looking, engaging only an elite group that considers the general public as too naive to understand these “complicated” works of art. My primary goal is for my sculpture to commune with the general observer; “the guy/gal in the street”. Great art, in my opinion, is meant to be inspirational. Think of the cave paintings of Alta Mira, the Sistine Chapel ceiling and Picasso’s Guernica. They all appeal to an inner “gut-wrenching” emotion; almost a call to take action to make life better. I feel it is essential to try to awaken a sense of joy in those who view my sculpture by making what I hope are beautiful objects. In this way, the work may contribute to improving someone’s existence, even if only fleetingly. Critic’s quote.” “Magical” is a dangerous word to use in art criticism…What I mean by the adjective, when applying it to Ostenberg’s sculptures, is that they seem to embody a sensibility which is closely attuned to fruitful co-incidences of idea and form which have nothing to do with the world of reason. - Ostenberg’s sculpture is transformative…Each of these sculptures represents a catharsis: something sensed, dreamed about, brooded over - and finally made.” Edward Lucie-Smith, London


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Marco Battaglini TIMELESS CARAVAGGIO curated by Giuseppe Ussani d’Escobar

TIMELESS CARAVAGGIO Can you imagine a contemporary version of Caravaggio’s paintings? That is the defiant and provocative proposal of the “TIMELESS Caravaggio” with Art by Marco Battaglini curated by Giuseppe Ussani d’Escobar. TIMELESS Caravaggio is a traveling exhibition of captivating art which will blur your sense of dimension of time and space. The opening show will be in Italy, Palazzo della Gran Guardia, on June 28th. Battaglini and Ussani d’Escobar invite us on a journey through the sensual and mysterious soul of Caravaggio brought into the present. Our inner world will be immersed and deeply touched by the Caravaggio experience, because his time and soul are alive and brought dynamically in to our actual modern world. In the words of the curator Giuseppe Ussani d’Escobar: “From the dialogue between Marco Battaglini and Caravaggio derives a creative relationship and a harbinger of further provocations about human and social themes. An operation that Merisi had once made, updating and renewing, rereading the classic myth, the Old Testament scriptures and the Gospel in a contemporary and subversive key. Battaglini carries in him the germ of the disruptive, it is demonstrated by his numerous re-readings in a modern way of ancient works. Graffiti Art enters in his interpretations with subtle, perceptive and defiant messages. Caravaggio involved fans of his art with visual tricks of light and shadow, reshaping the canvas with theatrical

representations that embodied the emotion of the moment, in the unity of space, time and action. This drama will unite the two artists in abolishing the rigid boundaries of time and space and merging their energies and ideas to freely flow in our magical universe.” According to the artist Marco Battaglini: “Entering the darkness of Caravaggio, I found the foundation of a new mythology with which illuminates the collective imagination. The contrast is a very important element of my aesthetic language, because it allows me to assess certain areas of the observer’s brain and open a gate to provoke thought and encourage imagination ... that great engine through which we can access other dimensions and create our reality. It seems relevant to me to engage viewers and provoke them to eliminate judgment and observe beyond the apparent. It is normal to judge a classical work as something ‘noble’, ‘refined’, ‘elegant’ and ‘beautiful’, versus graffiti on a wall as something ‘negligible’, ‘indecent’, ‘vulgar’ and ‘ugly’. I want to be the means to expand the perception of things, through confrontation and at the same time a union, a convergence, of diverse times, places, cultures, languages, ways of seeing reality.” Caravaggio and Battaglini, both of them provocative, feeling the street, revolutionizing the way we see reality, reassembling models and symbols, subverting them, redefining them beyond the aesthetic and the antiaesthetic.


THE VALUE OF ASSURING CLEAR LEGAL OWNERSHIP OF ART Collectors in today’s global art world should consider securing a third-party insurer’s guaranty of clear legal ownership of their artworks, just as they insure through title insurance the ownership of the homes they buy. Collectors who run companies address this same issue in their M&A transactions, where they always assure that purchased assets are free and clear of any claims. Assuring clear legal ownership for your art, or art you wish to buy or sell, is no luxury item. While nobody in the art world thinks that title risk will strike them, the art market gives us daily news from around the world that legal title or ownership risk is real and pervasive. Importantly, the issue is not just about how a given collector (or his or her dealer or advisor) assesses the title risk of an artwork on the date of purchase.

The issue is often as much or more about how counterparties will perceive this risk when it comes


time to sell, donate or use the art as collateral for a loan, or to transfer the art to a foundation or other tax-based structure as part of estate planning, where fiduciaries are typically involved. Five ways to make sure Taking measures to mitigate art world title or ownership risk helps you: 1. Make sure you actually own and can enjoy the art you buy. Smart, proactive collectors make title insurance a standard part of their purchase negotiations. Doing so mitigates both economic and reputational risk. Using title insurance helps to assure that collectors will not become embroiled in a transaction that goes awry—for instance, where a consignor has not been paid for an artwork that was not actually dealer owned-inventory and the consignor tries to claw-back the artwork. 2. Make sure you do not create liability for yourself or your family when it is time to sell.

to use the art in the market’s evolving monetizing strategies— for instance, using artworks as collateral for a loan or lending artworks to a museum for exhibition. No sophisticated financial lender or museum today can afford to take the chance that a pledged or loaned artwork has a hidden legal ownership issue that will create economic and reputational risk for them as well.

Lawrence Shindell ARIS Title Insurance It is one thing to say “to the best of my information and belief” that an artwork does not have a title problem. It is quite another to guarantee in absolute terms that the artwork presents no title problem, particularly for artworks which have any history predating the current ownership. Collectors and dealers, when they buy, can never be certain of the historical status of legal title to an artwork because of the non-transparent nature of the art industry. There is always some degree of unknown—even when buying directly from a living artist—which is why insurance for this kind of risk exists in the form of a third-party insurer’s guarantee. A title insurer with regulated privacy obligations is able to serve as a safe-harbor to create transparency of the transaction, which benefits both the seller and the buyer. This role helps to get done efficiently any well-intended transaction where neither party believes in good faith that a title problem exists, but they know that they cannot be sure of this given the nature of the art industry and want legal certainty. 3. Make sure it’s easier and less expensive to use art as collateral for loans or to lend art for exhibitions. Incorporating a title insurer’s life-of-ownership guarantee of clear legal ownership of an artwork at the point of purchase makes it easier later

4. Make sure you shore up your appraisals and valuations. Different art market stakeholders, including property insurers, rely on appraisals or valuations of artworks, but appraisals or valuations do not vet legal title. By industry standard, this issue falls outside the scope of this work. Even if a due diligence provenance assessment is given, appraisals ultimately assume and do not financially guarantee as a more complex matter that legal title of an appraised artwork is clear. If this assumption proves to be untrue, then the actual value of the appraised artwork (for the presumed owner) is zero. 5. Make sure you manage “insurable interest” under property insurance policies. The question of who owns an artwork when the artwork is stolen in a burglary and is later recovered—often many years later after the property insurer has paid the theft loss—can be a legally and contractually complex one. Many articles have been written on this one subject alone. Collectors who make it a habit to use title insurance in their art collecting should notify

the title insurer of the burglary or theft of a title-insured artwork, advise the title insurer of who the property insurer is, and file a copy of the title insurance policy with their property insurer as part of their property insurance proofof-loss. Your one take-away Good risk management when buying and selling art today should be viewed simply as a waystation in the pursuit of passion and investing in art. The complexity of questions of legal title or ownership increases every day in the art world and is broader than the art industry’s traditional focus on provenance. (Deeper information on these subjects can be found in an article recently published by Museum Management and Curatorship. Broader reading on the complexities of today’s global art market can be found here.) The take-away for collectors is: all these issues of legal ownership are manageable; they simply require and invoke new and proactive best practices by all those involved in art collecting. About the author: Lawrence Shindell regularly advises, speaks and writes internationally on the legal title risks inherent in the global art and collectibles market for a spectrum of industry stakeholders that range from individual collectors to institutional, regulatory and capital markets. He is a lawyer by profession who holds licenses in a number of U.S. jurisdictions, including admission to the Bar of the Supreme Court of the United States.


Negotiating the Private Art Sphere Curating a Private Collection by Ariane Belisle Founder & Managing Director, AIB Art Advisory

Flanked by two Eileen Gray chairs, Cy Twombly’s 1982 Naxos triptych is displayed. On the adjacent wall, Rudolf Stingel’s aluminium covered Celotex insulation board (Untitled, 2002) is juxtaposed against a Jean-Michel Frank minimalist shagreen cabinet. The pieces carry an underlying intellectual rigour that helped redefine 20th-century design, as well as Contemporary art. Engendering a haphazard narrative, the four works coalesce to form a different kind of dialogue, one that is distinct from the museum realm. Moving away from the white cube, these privately owned oeuvres – now housed in an Eaton Square townhouse – are cloistered from the rest of the world. Their chance placement and the consequential visual exchange it


creates was not the work of a museum professional but rather of Jacques Grange, the esteemed French interior designer who rose to prominence after decorating Yves Saint Laurent and Pierre Bergé’s Paris residence. While the artworks here are exhibited outside the museological sphere, they are still intrinsically linked to it as their history ensures that they are firmly anchored within the art canon. It is precisely this deeply interlaced relationship between the museum and the private collection that drew me to pursue a career in this field and establish AIB Art Advisory, an independent art advisory firm that offers expert investment advice and curatorial services to private and corporate clients.

Negotiating the unique rapport between the public and private sphere, the curator vacillates between these two worlds. Acting as a gatekeeper of sorts, he/she is charged with creating and managing ties between the institution and the individual. Needless to say, there is a claustrophobically tight circularity between these two facets of the art world; hence, the profession relies heavily on one’s ability to dip in and out of both pools. Arguably this could trigger a discord when it comes to curating the private collection with the public trust. Today, private art collections are increasingly trying to permeate the educational realm, a realm previously

dominated by museums and galleries. For instance, French Moroccan private collectors, Eli Michel and Karen Ruimy, established The Marrakech Museum of Photography and Visual Arts in 2013 displayed their extensive collection of fine art photography. Open to the general public; the curatorial program sought to further our knowledge and understanding of post-war photography. Furthermore, foundations, such as The Fondazione Sandretto Re Rebaudengo, are now providing new collectors with opportunities to exhibit their work more publicly. Similarly, Beatrix Ruf, Director of the Stedelijk Museum Amsterdam, founded ‘Pool’, an initiative to curate exhibitions at Luma Westbau in the Löwenbräu Art Complex with artworks owned by Maja Hoffmann and Michael Ringier. In Ruf’s own words: “‘Pool’ does not interpret private collections as merely the representation of individual preferences, but rather as a contemporary document.” This trend is echoed in the number of startups that are cropping up promising to connect collectors with institutions worldwide. Namely, Vastari raised a significant round of funding while tooting the tagline: “the exhibition connection”. Bernadine Brocker, Vastari Group’s CEO says: “The future of art and technology is a fully integrated experience where collectors, museums and experts can connect, curate, tour their shows and define best practices within international relationships.”

and managing diverging interests. This conflict, intrinsic to the art world, can be perceived when private collectors and foundations choose to employ curatorial labour. Thus, custodians of public museums often simultaneously curate private collections. While their shadow role could be justified as donor cultivation, it still raises some ethical concerns. The Trussardi Foundation, The Kadist Art Foundation, as well as the wealth management firm Northern Trust, all count amongst their advisors esteemed museum directors and chief curators, namely Massimiliano Gioni (Associate Director and Director of Exhibitions at the New Museum), Jens Hoffman (Director of Special Exhibitions and Public Programs at the Jewish Museum New York), Larry Rinder (Director of Berkeley Art Museum and Pacific Film Archive), Hou Hanru (Artistic Director of the MAXXI in Rome) and Michael Darling (Chief Curator at The Museum of Contemporary Art Chicago). In an article written for ArtSlant, Art writer Ryan Wong posits: “Within the art world, museums still set the standard for critical debate, the resuscitation and reexamination of artistic legacies, and scholarly research within the art world: their exhibitions are the most consistently reviewed, they command the largest spaces, and they attract the most visitors. But they no longer have a monopoly on that work.” The borders surrounding these two once distinct spheres – the institution and the private art collection – are beginning to erode. Hence, collecting has transitioned away from a manifestation of personal taste into a new realm; it is now a curatorial project. This relatively new phenomenon will shape our understanding of history and ultimately redefine the art canon.

Deviating from the conventional curatorial structure, private art collections are remoulding the public’s relationship with art. While this undoubtedly broadens our exposure to great oeuvres and deepens our knowledge of the art canon, curators need to be mindful of their responsibility when bridging the gap between public and private establishments


The art market is both growing and globalizing, making now the perfect time for family office clients to sell on their artworks and reap the financial rewards (if they can). The only problem: they don’t want to part with the beloved work, leaving family offices to manage “trapped cash”. Tim Hunter, Vice President of Falcon Fine Art, explains how art financing can help

Art Financing

by: Dr. Tim Hunter Falcon Fine Art


What can a family office do when a client has an extremely valuable asset they didn’t buy, and, therefore, don’t treat, as an investment? Such is the conundrum faced by many family offices dealing with clients who own fine art collections. Indeed, fine art is often primarily seen as a passion. The advantage to this is that artworks are treated as the cherished, historically and socially important items they are – indeed fine art is so much more than just an investment. The disadvantage of only treating fine art as a passion, however, is that – given the value of art (and the value of the art market) – ignoring its qualities as an investment means one thing: trapped cash. Which is where art financing comes in – enabling family offices to make their clients’ art collections “sweat”. Can’t sell, won’t sell So why does owning fine art mean having trapped cash? While art is often extremely valuable – take the Picasso that sold for US$179 million at auction earlier this year, for instance – it can also be fairly difficult to sell. Indeed, for the artworks that aren’t so coveted they raise US$179 million, the market can often prove unfavourable. This is, in part, due to the fact that buyers are often guided by tastes and fashion – both which fluctuate significantly and sometimes quite unpredictably. Of course, a client could be in luck, and in possession of the right painting at the moment it is most popular – at which point it is not just fairly easy to sell, but perhaps wise to do so, and there are many collectors who find themselves in this position. Certainly the art market is not just booming – with the 2015 TEFAF art market report citing a value of €51 billion worldwide – it is

also globalizing, introducing a world of potential buyers. Yet just because it is a good time to sell, does not mean a client will. Certainly, those who have bought an artwork they love might want to keep and enjoy it, regardless of its potential value. Or, perhaps inspired by the success of a similar painting, a client might wish to guard their artwork as it rises even further in value. This is where cash gets trapped. Whether a client cannot, or chooses not to sell their painting, it remains true that a valuable asset hangs on their wall. An asset that, if sold, would release liquidity they could deploy into other areas – other investments, for instance, or even a business. Certainly, the freed-up cash could even be used to buy an additional artwork – thus enabling clients to expand, or evolve their fine art collections. “Making collections sweat.” What is the solution? Art financing offers a way for collectors to monetize their art, without the need to sell it on: it helps release trapped cash, and enables family offices to explore a smart wealth management strategy around their clients’ art collections. What’s more, this can be achieved without compromising on clients’ desires to enjoy the art. Indeed, some firms such as Falcon Fine Art will allow collectors to continue to display the paintings in their homes throughout the financing term. But what about a client’s other assets? While some lenders require other assets as additional collateral, art financiers – on the whole – are only interested in the artwork, meaning family offices can collaborate with such lenders without risking other investments. Quite simply, art financing is a smart wealth management strategy. The conflict between passion and investment will always pose a challenge to the family offices of fine art collectors. Yet through embracing art financing – collaborating with institutions that have the expertise to manage a complex asset in a fluctuating market driven by trends – trapped cash need no longer be an issue.

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Edited by Pandora Mather-Lees According to Deloitte’s 2016 report on Art and Finance, “73 percent of wealth managers in 2016 said that their clients wanted to include art and other collectable assets in their wealth reports, to have a consolidated view of their wealth”. However, making sense of the data and providing an accurate interpretation has some complexities. The art market lacks transparency, is unregulated, requires education and has no “prêt-à-porter” solutions dedicated to wealth management. Therefore, with the exception of family offices such as STERN&Cie which have dedicated art divisions, it is difficult to assess such an asset class in the same manner as other asset classes with a better data history. Solutions to this are emerging. During recent years we have seen more ArtTechs driven by funds with the aim of developing reliable analytical tools. These are not merely logistical modelling tools, they have a userfriendly, ‘familiar’ look to end users, like Bloomberg’s dashboard, mobile apps, or websites and they are based on Big Data. Is Big data the Alpha Omega answer? Data these days tends to be sourced from internet research, social networks like Instagram or Twitter, emails and specific market sources. These include auction results, exhibition catalogue references and galleries’ official pricelists. That said, art price databases rely extensively on public


auction sales results and caution is advised here for the following reasons: - no one registers 100% worldwide of the auction sales, so data is incomplete - 62.5% of global art sales are from dealers so not reported and 37.5 % by auctions houses (Tefaf 2017) - private sales conducted by auctions houses remain confidential Competition to acquire data is on the increase: - Sotheby’s auction house acquired art-techs like Mei Moses Art Indices to detect trends and Orion Analytical to combat art market forgery. - Artnet, an online price database and auctioneer, bought Tutela Capital, a boutique analytics firm - Heritage Auctions sued Collectrium, a database service belonging, since 2015, to Christie’s for data scraping However, the private market data by its very nature will be excluded from these analyses. Georgina Adam, The Financial Times’ Art Correspondent, is quoted in the 2017 Happening’s report sponsored by AXA ART. When questioned “What would the positive and negative impacts be of having more transparent information in the art market?” she responds “I don’t believe in it personally.” In the same report, it was underlined that “data in the art world is varied, incomplete and even uncertain”. Data storage investments are also another key issue: Visualise the level of investment involved in the registry and storage of a single artwork. Collections management data typically includes texture, colours, theme, creation’s year, articles on the artist, articles on the artwork, provenance, repeat sales, not to mention HD images, auctions and private sales results, multiplied by all the works in the artist’s oeuvre. “Worldwide, more than 252,000 Fine Art lots were sold in the first six months of 2016” according to Artprice. That done, you would need additional investment to build algorithms to evaluate the object’s value. Even for a Picasso painting, would this be worthwhile? In a global art market of some $60 billion, it clearly doesn’t represent sufficient ROI potential. Simple tools originating from not-so-Big-Data for family offices? As the TEFAF art market report 2017 suggests, collectors are securing deals outside the scrutiny of auctions house publicity, and the proportion of

private sales to auctions house sales is expected to rise. How does this bode for our clients? We are a long way from having tools to hand such as precise valuations, but we can analyse the rate of liquidity, the estimated portfolio value and other factors relevant to the client’s investment strategy. These are: 1. Monitoring illiquidity Investment in fine art as part of a wider portfolio mix can help protect the portfolio from volatility. There is also potentially a higher return relative to risk because of the low correlation of art compared to, say, another type of financial asset. Volatility is then lower because it is spread across mid-long-term investments. How, however, can we monitor illiquidity distribution by an artist for the High Net Worth Investor? We can analyse on a quarterly basis, for example, the number of transactions bought in (BI) the rate of artists at auction and their price distributions: Here the figures indicate that - Gerhard Richter has a low BI rate (16.1%), hence a lower risk and is more likely to be sold in the USA. - When observing Warhol’s price distribution, the most liquid sector is $10-50k with sales originating in the USA Finally, by looking at Warhol’s fluctuation in auction sales based on the 2017 Tefaf report, we note that the artist has dropped from 2nd to 8th in the rank of auction sales

volume with a spectacular decline of 68%. The inference is that this blue-chip artist is now a weaker part of any portfolio. 2. Keeping an eye on portfolio value Opinions on what percentage of any asset portfolio art should comprise vary. Some say 5% of art in the portfolio is the maximum, according to others it is closer to 10 to 20 % is reasonable for such assets which are deemed to be more illiquid. Rather than focusing on maximum ratios, however, wealth managers should advise their clients to focus on a few essential points to be checked on an annual basis such as: - Appraisals, Valuations with specialists to insure the collection - Overall quality, Restoration, Exhibitions loans, Condition reports to improve and preserve the collection - For sales, the client and art advisor should use various transaction channels to obtain the best price such as galleries, auctions houses, private dealers and private individuals. 3. Consideration of other issues There are of course other issues including succession planning for the portfolio, collateral or bridge loans, the establishment of a curatorial board, family councils and so on. There is a danger of being overwhelmed by information and increasingly so with the tendency of clients to recruit experts in the wake of the burgeoning art advisory sector. These “art intermediaries” are not necessarily art market experts. Family offices must protect their client and their heirs and work closely with the suppliers to ensure good practice. To conclude, art auctions gauge the mood of the world’s wealthy. Last February, auctions showed an optimistic upturn with ArtTactic reporting that ” London’s Impressionist and Modern Art Evening Sales Jumps 87% from Last Year”. The role of the art advisor should be to mine and assimilate the breadth of data now available on the industry, to understand emerging trends and to use their experience to interpret this so as to provide sound advice for the family office. Vanessa Quang has over 15 years of experience in the art market as a gallery owner. She now works as a Senior Advisor for Stern International Art Advisory part of the European multi-family office STERN&CIE.


© Yvan Léau


© Yvan Léau - Collection Palais Princier,Monaco


In 2014, in Monaco, L’Oiseau, a painting by Albert Diato 20 meters in length was discovered during renovation work. The government of Monaco immediately decided to restore the work, calling upon restorer and conservation expert Claude Wrobel. L’Oiseau, which weighs approximately 500kgs, was entirely dismantled, protected, packed and transported to a factory. It had been ordered from the artist by Prince Pierre, who knew Albert Diato because his father, a banker at Lloyds, was of Piemontese origin, and had settled in Monaco. Diato’s grandfather was a successful photographer who designed postcards and was part of the Monaco’s elegant set. Given his talent, Diato’s works are still underpriced in my opinion. In l’Oiseau, which portrays nothing but an immense bird, red and black, a bird of good omen, the artist’s entire corpus re-emerges for our discovery. Free, Albert Diato had the gesture sure. His drawing, painting and ceramics were nourished by literature and the art of the mid-century. No has ever been so pierced by line, by colour. The existence of l’Oiseau intimately reveals its connection to the whole of Diato’s body of work and to Diato’s participation in the life of the twentieth century. As mentioned, Albert Diato was equally talented with a paintbrush, a pen or clay. After his baccalaureat in Monaco, he moved to Paris, where he encountered Surrealism and Lettrism. As early as the 1950s, he began working in ceramics in a unique way that led him the word of works on paper. In 1947, we saw the mastery of line in, Diato’s nude studies or Le pêcheur au bord de l’eau. In 1946, Jean-Paul Sartre’s existentialism affirmed that every individual is the central actor in his own life. French youth were deeply and lastingly marked by Sartre and the hippies with “their flower power” Though Diato was only 19, upon hearing this famous lecturer when he listened to this he enrolled at the Sorbonne in philosophy and became a very good friend of the painter, Hélène de Beauvoir, younger sister of Simone de Beauvoir, Sartre’s partner. Diato’s clay work began with pieces more

closely resemble art brut. These ceramics are anthropomorphic and zoomorphic, birds and feminine bowls. The Victoria and Albert Museum in London, in fact, have on display some Diato’s ceramics. The next stage in Diato’s development occurred around 1954 when he began to introduce gouache, leading him clearly towards stylization. Diato successfully portrayed cities and landscapes, such as the Florentine bridge, over the Arno. Referred to as post-Cubist, Diato was also deeply influenced by lyrical abstraction, for example, the works of Zao Wou Ki. Zao Wou-Ki is confronted with Paul Klee’s paintings. In Paul Klee’s works, Zao Wou Ki discovered another painting full of letters and signs. Diato was also deeply affected by Klee‘s approach and admired Picasso, Max Ernst, Nicolas de Staël, Dubuffet and Wols.

His subsequent superposition of colours created rhythm and a dynamic unique to him. Temperamentally a free spirit, secretive and discreet, yet provocative, Albert Diato enthralled his audiences. “….As was his custom, Albert Diato dove into the unknown with assurance dabbling in Greek and pre-Colombian forms” says Gilbert Portanier, one of Diato’s best friends. When Diato met Picasso, he decided to create what he called a triptyche studio in Vallauris, in the South of France, with Francine Del Pierre and Gilbert Portanier. From 1954-1958, he worked in Faenza and then in Milan where he received the silver medal at the triennial, for ceramics. “Today (in 1960) painting is an act of lighting speed, constantly outpaced by the march of time. Like

“I will be a Sun, a cursed Sun » Albert Diato, artist (19271985)

poetry, it remains the most pressing question the greatest imperative for he who is called upon to make visible the burning question“(…) said Diato. Diato, the artist, is fully engaged in life, “the canvas becomes an active force than can change our behaviour every day.” In 1961, Albert Diato moved away from his early abstractions and began to introduce the symbolism of language. He also explored sgraffito, using an instrument similar to a comb. In the same era, he experimented with a blow torch on wood. In 1961, after a trip to Italy, he worked with gold leaf, in a pictorial reference to Italian religious painting and prophecy: “I will be the Sun, a Cursed Sun”. In this painting, the sun and gold blend together in his work. From 1964 and up to the end of his life, Diato’s works became lighter, like a hiker, who lightens his backpack as the end of his path approach. In October 1967, Diato travelled to Afghanistan as an expert on behalf of the French Finance Ministry, working with worked Afghan potters. He created a panel of a huge Gallic rooster with an eye in lapislazuli, for the French Embassy in Kabul, and for the King Zaher Shah, two large ceramic panels. The king Zaher Shah who reigned from 1933 to 1973 and encouraged women’s emancipation in Afghanistan, which became a member of League of Nations in 1934. Around this time, Albert Diato proposed a model for the Afghan pavilion at the Osaka World’s Fair in 1970, of a giant chess game, with pieces, 20 cm in height, in lapis-lazuli and white jade. After his stay in Afghanistan, Diato conceived ceramics with a new aesthetic, inspired by colour, for example, one with a cylindrical foot. The artist, so intimate with sculptures and produced a series of birds in which owls were especially noteworthy. Diato was a great master of volumes and his ceramics of this period were marked by the colour blue like those of Istalif, in Afghanistan. A lover of birds, he brought them in his painting and as ceramics, in particular towards the end of his life: owl, toucan, a crow teapot, and a magpie box. In 1984, he and his wife Francine returned to live in Monaco. He died prematurely in 1985. Diato’s artistic work, both as a Monegasque and an international artist, reveals a unique talent, and must absolutely be rediscovered. by Nathalie Gallon


AUTHENTICITY IN THE ART MARKET Are there more fakes on the art market these days or is it that we are now flushing the perpetrators out into the open and becoming cognisant of the scale of the issue? Since Actor Steve Martin bought a fake Campendonk in 2004 from a Parisian dealer, many other works by its notorious forger Wolfgang Beltracchi, not to mention numerous others, are still deemed to be in circulation.

an artist’s oeuvre and some boards have comprised questionable or compromised officials. As a result, hapless buyers have been fooled by sham certificates validating fake artworks. Even where genuine, the socalled committees of experts can also be a law unto themselves. Foundations such as the Wildenstein Institute exist to protect and validate an artist’s repertoire, reputation, copyright and moral rights.

Great art market minds have been coming together in the US and Europe to debate how to tackle crime in the art world. This autumn in London alone we witness at least three conferences addressing the idiosyncrasies of trading art and artefacts. Market regulation and bad practice were the subject of September’s Art Business Conference in Westminster. Then in October international law firm K&L Gates held a seminar solely focused on authenticity and now in December; ‘Fake or Fortune - On the Issue of Forgery of Russian Avant-garde Art’ takes place at the GRAD cultural space in Fitzrovia.

The committee produces a catalogue raisonné - a comprehensive listing of the approved and known works by an artist. While this assists buyers to purchase works officially recorded as authentic, the art world is full of petty issues, protectiveness and professional jealousies that can lead to works not being included that should be.

The Guardian back in February 2014 suggested that 90% of the works on the Russian Art Market are forgeries. This is a staggering figure by any standards, and the art market needs to address the problem of how to verify what is passing hands as more serious collectors, often across a chain of sale, suffer from dire financial consequences and tarnished portfolios. It is a market full of intermediaries, often trading across borders with anonymous clients. Handling stolen, fake or suspect artefacts is often not deliberate and a dealer can unwittingly be an arbiter of bad practice and could be prosecuted for fraud in the worst case scenario. Berlin lawyer Frederike Gräfin von Brühl pulled no punches when she opened the K&L Gates’ debate with the pertinent question “Who will supervise the supervisors?” There is nothing to stop a selfappointed committee setting up to authenticate


Von Brühl argues, that the official compilation, traditionally a printed publication, is deemed to be definitive, yet it should have the flexibility to reject or accept new additions - the solution being an online database. ‘Getting In’ to the book is so very critical to selling a work at the right price that authors can be liable for prosecution if they do not publish a work that is, by many accounts, considered an original. The French Supreme Court ruled in an appeal, ordering the Wildenstein Institute to accept a Kees van Dongen to the official list. Its argument? Failure to do so would have a significant impact on the work’s marketability for the owner. On the flip side, authentication committees don’t have it easy. Legal costs can escalate out of all proportion, and they have been sued and ‘coerced’ into making positive statements about a work of art they genuinely have doubts about. The PollockKrasner board was even shut down, bankrupted, over a law suit about a disputed work. Equally there are cases where artists, Picasso included, leveraging ‘Doit d’auteur’, their Moral Right, have disavowed genuine works. The auctions houses tend to come under a lot of scrutiny here because of the public

by: Pandora Mather-Lees nature of their activities, the large numbers of works of art passing under the gavel and the soaring values which result in higher stakes when a forgery surfaces. At the Authenticity debate, Sotheby’s Cecilia Fletcher suggested that the criticism frequently levelled at Auction houses trading in these works is unfair. Their experts carry out careful due diligence, based on years of experience in specific fields and go out of their way to verify the artefacts they take on board. How rigorous is this ‘due diligence’ in practice, however? Sarah Charles, Senior Legal Counsel with Christie’s, says that they typically take three steps. The first is basic connoisseurship using the appraisers and experts in the appropriate departments and second there is the careful verification of provenance and associated documentation. Finally, scientific analysis is carried out. This form of materials analysis is now becoming more accurate and also cost effective. Science is now enabling buyers and sellers to have more confidence in trading art as techniques improve. It can rule out the possibility of a work being a forgery and is a critical part of the due diligence loop. Laboratories such as Art Analysis & Research run by Nicholas Eastaugh, the scientist famous for nailing Beltracchi, have a suite of forensic gadgets at their disposal that would not be out of place in a James Bond film. These tools include highly sophisticated digital X-ray, UV and infra-

red analyses, deep specialised imaging and microscopy. This is all good stuff and helps to eliminate doubt, but what if a client taking a highly prized Rembrandt to market doesn’t want to know the truth in case the work, which he paid millions for, turns out not to be worth the canvas it is painted on? Nicholas Eastaugh says, “We believe scientific analysis in combination with a comprehensive understanding of artist’s use of material represents the future of due diligence in the art market and demand for it is expanding rapidly. That is why we are investing in our capabilities to stay ahead of forgers while expanding both our geographical reach and the talent in our C-suite” Generally this kind of intricate detective work can be applied to works on paper, canvas, sculpture, ceramics and of course wood with radiocarbon dating. AA&R claims the science has limited value in isolation; it really comes into its own when a scientific examination is carried out in conjunction with applied historical expertise with their resident art historians. Are there other ways to verify what you are buying at auction or from your trusted dealer? Not for existing works on the market, however Aris Title insurance company is sponsoring a novel technology that can be embedded into a painting in the form of a scannable label that will verify the owner and the work. The somewhat unwieldy named ‘Global Center of Innovation for i2M Standards’ is doing for art what companies such as Spectra Systems does for the luxury goods industry – fighting fraud with complex technical

innovation. The organisation is working globally and already has early adopters for its solutions. While one imagines that any ‘unbreakable code’ will eventually be cracked by hackers, Aris CEO Lawrence Schindler makes a strong case for the robust nature of i2M and such a measure, when supported by an industry with a serious problem that inhibits its ability to trade, must surely be applauded. There is an analogy here with house insurance. Properties with alarm systems pay lower premiums and are less at risk from burglary. Leaving one’s door unlocked altogether is plain stupidity and prevention is better than doing nothing. A system like i2M needs to become industry standard throughout the world and bought into by all the various stakeholders to succeed and that is a tough call, so the market will be following its developments. Meanwhile back to Russia and the final word on the value of these public symposia from Natasha Butterwick Director of Butterwick Russian Art Gallery. Natasha and James Butterwick have been fighting for transparency in a world of pandemic corruption which goes back as far as the Cold War when many works with murky provenance were smuggled into the West: “The very public battle against Russian fakes and especially those who provide these second rate paintings with certificates of authenticity is reaching its apogee – reports of arrest warrants soon should become public knowledge. Such conferences are a vital cog in the machine to finally bring this absurdity into a wider domain.”


Freedom by Darren Dearden

Bath Art Fair

by Ekaterina Luki


The Savages of EÂŁden by Chris Rivers This Bath Art Fair, near Bath in England was a resounding success. The fair was brisk, with many visitors in attendance there to view and buy, and buy they did. The fair is nestled in the rolling Somerset hills of England and within spitting distance of the majestic city of Bath. The fair was under one beautiful roof, and the event also brought the sunshine for the weekend. It was a perfect oasis of calm that was relaxing and inspiring. If you are looking for a painting for that empty spot in your home, this art fair is worth a look. There were some of the best contemporary professional artists in the country exhibiting many wonderful works including contemporary artwork, ceramics, jewellery and sculpture from over 50 UK leading independent artists.

Artists were happy to chat about their creations with the visitors and exhibitors alike. It was enjoyable to listen to them talk about their conception, chat about their meaning and learn about the techniques they used to create their works. Many of the techniques were innovative I must say. The driving force behind this delightful art fair is the Somerset artist Alce Harfield a professional artist for over 25 years. The Really Reasonable Art Fair in Bristol and Bath were her first events, followed by The Somerset Art Fair at The Bath and West Showground in 2015. I would highly recommend the Bath Art Fair to include on your list of art fairs to do. Ty Murphy

Founder of the Bath Art Fair: Artist Alce Harfield


JEHANE RAGAI Department of Chemistry American University in Cairo


Throughout history, forgers have designed and executed deceptions on a grand-scale! Behind their aberrant actions are concealed feelings of torment, ambition, deception, greed or a desire to get back at an art world they perceive as ungrateful and unwilling to recognise their own talent. Criminologist Maurice Gauthier explains that “ the act of forgery is motivated….by inner conflicts that demand relief from tension ….an attempt to solve emotional conflicts.” , whereas American arthistorian and novelist Noah Charney identifies the primary motivation of forgers as a desire ..” to trick the art world..” In tandem with their fraudulent actions, forgers are generally pathological liars, and as described by psychiatrist Charles V. Ford: compulsive lying is a coping mechanism that alleviates the individual’s internal stresses. In keeping with the above observations, the predilection for lying and tendency to deceive has been uncovered in the case of a good number of famous forgers, such as the likes of Han Van Meegeren, Elmyr de Hory and Eric Hebborn, yet… no lie has created more ripples in the art world as the claim by Shaun Greenhalgh that he faked the drawing of La Bella Principessa.

Shan Greenhagh


Shaun Greenhalgh born in 1961, is a British art forger, who produced from 1989 – 2006 in collaboration with his brother and parents a wide spectrum of forgeries ranging from Ancient Egyptian sculptures, to Assyrian stone reliefs, to a heavy Roman silver tray, to 19th-century watercolours.

His elderly parents and brother dealt with the sales side of the sham, with his wheel-bound father carrying out convincingly most of the transactions, while acting as an angelic invalid. The artworks were claimed to be a family inheritance possibly worthy of some value and cleverly concocted schemes convinced museums, auction houses and galleries of their provenance. However in spite of a forger’s meticulous effort at producing a faultless forgery, there comes a time when one single incriminating mistake is made. In the case of Greenhalgh a misspelt cuneiform on a 17th century BC Assyrian relief tablet uncovered the whole scam, leading to his arrest in November 2007, and to a prison sentence of four years and eight months. In November 2015, almost five years after his release from prison, Greenhalgh stirred once more the highbrow art world, by claiming in his book, A Forger’s Tale, that he was the author of La Bella Principessa, a beautiful portrait on vellum of a young lady with braided hair. This drawing, the authenticity of which is the subject of an ongoing passionate debate between experts, is considered by some to be a 15th Century drawing by Leonardo Da Vinci, depicting Bianca Sforza, daughter of the Duke of Milan Ludovico Sforza and his mistress Bernardina de Corradis .

Greenhalgh wrote: “ I drew this picture in 1978 when I was at the Co-op,…… The ‘sitter’ was based on a girl called Sally who worked on the checkouts. Despite her humble position, she was a bossy little bugger and very self-important.” This latter ludicrous announcement indicates Greenhalgh’s total obliviousness of the many facts that deprived his assertion of all credibility. In his claim he totally disregarded the fact that La Bella Principessa ‘s provenance could be traced back to at least 1955 when Jeannie Marchig in a lawsuit brought by her against Christies indicated that the drawing belonged to her husband artist Giannino Marchig when they married in 1953! Moreover, in 1978 Greenhalgh was only 17 years old and it is unlikely that at such a young age he would have become aware of Leonardo’s techniques as well as of the fact that his left-handedness had to be emulated. It is equally unlikely that he would have created features in the drawing that were later revealed by sophisticated scientific analyses such as Leonardo’s hand-print technique in the flesh tones. And if Greenhalgh did indeed forge LBP why did he remain silent for so many years and why did he not promote the drawing as a Leonardo?

La Bella Principessa There are so many other inconsistencies that can be identified in Greenhalgh’s notification, however one scientific observation that cannot be omitted is that the white pigment that was used in this drawing contained lead which was dated back (through the mass spectrometric determination of lead isotopic ratios) by a reliable Laboratory to at least 250 years. His response that he was using organic pigments challenges even more his credibility since lead as lead carbonate is inorganic and could not have been present in any organic medium. Once more science has allowed for the provision of irrefutable evidence against sometimes very dubious statements made by forgers who need to lie!. Jehane Ragai Emeritus Professor of Chemistry The American University in Cairo Author of “The Scientist and the Forger” Picture credits: Shaun Greenhalgh: drawn by Fadia Badrawi and La Bella Principessa: Curtesy of Pascal Cotte reproduced in ”The Scientist and the Forger” by Jehane Ragai, Imperial College Press, 2015


An artists passion for dance Richard Young is a UK artist based in Devon, south-west England. His biggest achievement was selling all exhibited art work by Day 1 in his most recent 2015 exhibition in Taiwan. Richard is currently putting the final touches to his 2017 artwork exhibits to include his most ambitious feature exhibit to date. Despite his talent and initial progression with pencil and chalk drawing, Richard’s ambition was always to master oil painting. This he began at the age of 12 and had succeeded in a few regional competitions in Yorkshire, North of England. His first oil painting award was in 1975. Thanks to his tutors who were supportive and encouraged him to take both ordinary and advanced level art exams a few years earlier than his peers, in which he passed with top grades. Being financially driven at the time, Richard graduated engineering in 1983. With a passion for travel, he joined an international design consulting firm in the Middle East as a design consultant. He returned to Commercial Art in 2003 as a semiprofessional freelance artist and has extensively developed artistry and his personal style through exhaustive self-tuition and ‘burning’ the midnight oil. In 2004, Richard started painting with a knife as he enjoyed the feeling of applying a buttery paint on canvas with a resultant time-saving cleaning process. Inspired by his favourite Old-Master, William Bouguereau, the composition and technique Richard uses is influenced by the realism and romanticism from post renaissance classical masters. Predominantly figurative and of females, the tendency of his artwork is towards carefully composed anonymity, capturing the emotions and self-belief of the subject. In his view, the creation of figurative artwork not only depicts the emotions of


the artist; it transforms the artist’s emotions. It is far easier for all of us to carefully scrutinise figurative artwork and judge its anatomical accuracy, often creating a more personal understanding of specific favourite pieces. When asked why he chooses to paint ballerinas and musicians, he said: “He paints for passion”. He tries to depict the emotions, mood and atmosphere of his subject whether it’s a dancer, a musician or a simple portrait. His musicians and singers come alive with their passionate performance. His preferred lighting, shading and contrast are dramatic. Richard delves extensively between the extremes of highlights and lowlights in his artwork in a chiaroscuro technique, occasionally minimalist, often leaving the viewer’s mind to complete the picture and to add depth. To Richard, the meaning of art is that it should be both satisfying and fulfilling, a way of seeing the world differently, seeing one’s self differently, opening and challenging one’s thoughts to a different perspective and wider dimension, arousing one’s senses and stimulating one’s mind. Art should be viewed, pondered, admired, exhibited, proudly displayed, carefully scrutinised, and in order to benefit to the fullest extent possible, it should be understood from the perspective of its creator. This is obviously not always quite as simple as it seems, though if a viewer has similar feelings to the artist about art, they will connect with the artwork and better understand the artist. Art is a thing of beauty, not just an investment. A gallery, exhibition or even a website should be an enjoyable visual experience to look at artwork, irrespective of whether the viewer is interested in purchasing a piece.

‘The Passion of Dance’ ‘The Passion of Dance’ – Winner of 1st Place in Traditional Art in Red Bubble’s 2013 Juried Invitational Solo Exhibition. Awarded the ‘’Excellence Award’ in the Traditional Painting category, awarded ‘Best in Show’ overall and given a special recognition ‘Solo Exhibition’ award. It was subsequently a finalist in the Fine Art Trade Guild’s 2014 Art and Framing Awards in the Best Selling Published Artist category in May 2014. This painting is Richard’s bestseller.


The Art of lending against artworks

Deborah Lechtman

Nigel Glenday

Sandrine Giroud

Art is a passion and a lifestyle for many collectors, but can be a highly capital-intensive pursuit for which few dedicated sources of financing exist. Increasingly, collectors and family offices are exploring assetbased lending against fine art as an integral and efficient way to finance their collections. This type of financing allows collectors to access credit secured purely by the value of their art and without encumbering other personal assets. Since the financial crisis, traditional banks have largely retrenched from asset-based lending and certainly so against art. The few banks that do offer art lending typically also secure a collector’s financial assets, resulting in far less flexibility for the collector. However, options for asset-based financing against art are growing and offer flexibility from multiple vantage points. Active collectors can seize on near-term acquisition opportunities while preserving their liquidity position and isolating the risk to their financial wealth. Family offices managing art as an investment can achieve superior financial leverage


By Sandrine Giroud, Nigel Glenday and Deborah Lechtman against an appreciating asset, as well as the ability to re-allocate capital efficiently across an overall portfolio. Those with substantial collections, built over many decades or acquired through inheritance, can use an assetbased loan as an estate planning tool to manage a longer-term plan to sell, which could otherwise incur punitive and complex tax consequences. Art-secured financing has existed in various forms, extending back to at least over a century when Paul Durand-Ruel, the pioneering French impressionist art dealer, collateralized his inventory to support his business. Today, however, both cyclical and structural trends underway in the current art market are accelerating the adoption of art-based financing as a standardised market tool. Weak auction sales results (down nearly 20% year-to-date) are raising interest in financing as an alternative channel to monetize a valued collection while retaining the option to sell in future. At the same time, the overall increase in art valuation experienced over the past decade is necessitating greater

due diligence on the part of buyers, which ultimately helps to support the underwriting process required for an asset-based loan. However, many collectors remain unfamiliar with the basic requirements for an art-based loan. Broadly speaking, the asset-based nature of the loan shifts the underwriting focus to the art as collateral, both the objects themselves and their ownership structure. Works by artists with a global collector base and an existing history at auction most readily serve as loan collateral. Collateral valuations are conservative estimates that would generate broad demand at auction. Advance rates (or loan-to-value or LTV) typically range up to 50% based on a diversified collection. Storage requirements can vary by jurisdiction, but with many collectors holding their art for investment purposes, holding art in specialised fine art storage facilities or free ports is increasingly commonplace. In many respects, underwriting for an art-based loan begins with the due

diligence undertaken by a collector at acquisition and the adherence to best practices when managing a collection over time. Also, clarifying – in a purchase agreement – some legal considerations, such as legal title, export restrictions and applicable law, greatly help to ensure that an art collection may be considered for a loan. The underwriting process typically involves review of the extent to which an art collector has addressed the following issues, many of which pertain to the future salability of the artwork by the collector: • Provenance research: it is of utmost importance to verify the chain of title and that an artwork was not stolen or looted. This minimises the potential for a latent claim by a rightful owner or heirs, which could result in the collector being compelled to restitute the artwork. Collectors should be in possession of documents evidencing titles, such as past bills of sale or inheritance documentation. Databases such as the German Lost Art Foundation Database, the Art Loss Register, the Central Registry of Information on Looted Cultural Property 1933-1945, the Descriptive Catalogue of Looted Judaica or the Getty Provenance Index databases and other governmental and nongovernmental databases (i.e. Interpol) also aid as sources for provenance information; • In the event of a cultural good: collectors must ensure that an artwork falling under the definition of a cultural good was not acquired in breach of cultural goods protection laws, including cases in which a work may have been exported illegally from its country of origin, which could also lead potentially to a claim for restitution;

• Expert analysis: collectors should have appropriate experts evaluate the artwork for any potential issues related to authenticity and physical condition. This includes reviews of the respective catalogue raisonné, exhibition history, treatment in literature by leading scholars, authenticity certificates (where applicable) and inspection of the physical condition of the work. Collectors increasingly use technical, physical analysis as well; • Intellectual property rights: the intellectual property rights of the artist must not be violated, and collectors must, in particular, ensure that they are free to transfer the artwork or that any artist resale rights have been complied with; • Insurance: adequate insurance underwritten by a highly-rated carrier is critical to the protection of the artwork against physical risks related to damage and theft. The value set for the insurance must be carefully reviewed, as it may also be relevant for tax purposes; • Customs and taxes: customs duties and taxes must be carefully assessed and complied with to avoid any outstanding liability that may reduce the liquidity for an artwork and prevent or limit its future transfer. Certain customs fees and taxes may be minimised depending on the applicable law of the collector’s estate, the physical location of the artwork or the use of a legal vehicle, such as a company, a trust or a foundation; • Wealth transfer issues: Building a collection is a lifelong endeavour – often even multigenerational –, and asset-based lending can be an integral part of a collector’s estate planning strategy. Without adequate estate planning, however, the value of a collection can be quickly

diminished. Dissension among heirs or neglected tax payments could result in a collection being divided and reduced in value. Therefore, collectors must clarify the law(s) which applies to their estate, as this has implications for issues such as heirship rules, tax on the estate and for the heirs of the estate, the handling of debts of the estate and remedies available to the heirs. The estate planning strategy should also address the particularities related to the chosen matrimonial regime as this could have an important impact in case of death or divorce. In general, better-documented collections provide for a faster overall process of securing a loan against the art. Professionally managed and documented collections can facilitate processing of an art-based loan in a matter of weeks. Whether to support new acquisitions or simply to enhance the liquidity of a valuable asset, asset-based loans against art can assist collectors and family offices in a wide range of circumstances, without the need to sell. However, this requires diligence and prudent planning. Collectors are strongly advised to seek professional guidance to ensure that an artwork’s artistic and financial potential are best preserved. Sandrine Giroud is a lawyer with LALIVE, Geneva, Switzerland, specialised in litigation and art law ( Nigel Glenday is Vice President for Strategy with Athena Art Finance Corp., New York, USA (nglenday@ Deborah Lechtman is a lawyer with LALIVE, Geneva, Switzerland, specialised in litigation and art law (


Repairing Our World Our legacies are our children and the world we leave behind for them. We exert more control at home with love than in the larger world prone to animosity and hatred. How can we fix this world at large in which our children and grandchildren will grow up? Perhaps by developing creativity and empathy—unique human attributes that would seem to be in short supply. The International Child Art Foundation (ICAF), which fosters creativity and empathy in

A work with the Chinese delegation


children worldwide through the power of the arts. The ICAF treats children as creators, not just pupils or consumers; their imagination a seedbed for discovery and innovation; and the art they produce as the most honest and purest form of human creative expression. Research shows that while innately creative, children may not stay creative for long. A scientific explanation lies in the “fourth-grade slump” in children’s creativity first discovered by E.

The International Child Art Foundation is a nonprofit organization founded in 1997 and hosts The World Children’s Festival every 4 years.

The children show their works Paul Torrance, ‘father of creativity’. Torrance found that Children between the ages of 8 to 12 can become more conforming, less likely to take risks, and less playful and spontaneous than in earlier years. Once this “4thgrade slump” gains a foothold, it can consolidate and may last into adulthood. The ICAF’s Arts Olympiad is designed to empower schoolchildren to overcome the “4th-grade slump.” First launched in 1997, the Arts Olympiad has grown into the world’s largest art program for 8- to 12-year-old students. The ICAF provides its structured lesson plans free of charge to teachers to implement, at the end of which students produce original works for an art competition. The winners of the Arts Olympiad, representing their school districts or cities, are invited by the ICAF as official delegates to the World Children’s Festival (WCF). Held every four years as “Olympics” of children’s imagination,

the WCF provides delegates with a transformative experience that enhances their creative potential and develops empathy for collaborative innovation. The Sixth Arts Olympiad Lesson plans can be downloaded at the ICAF. org website starting this June. The Sixth WCF is scheduled to take place in June 2019 on The National Mall in Washington, D.C. The WCF is a unique three-day celebration held in ‘America’s backyard’ which is staged and emceed by the children. The plans for the 2019WCF include child artists from around the world co-imagining and then co-creating “Children’s Earth Flag” for the first human mission to Mars. Approximately five million students have participated in the Arts Olympiad to-date. The United States Olympic Committee has granted the ICAF an exclusive license to use ‘Arts Olympiad’ and ‘International Arts Olympiad’ marks. The ICAF is

independently ranked by More4Kids among the Top 25 Children’s Charities. In addition to conducting research published in such esteemed journals like The Lancet, the ICAF publishes ChildArt magazine for children’s creative development and global competency enhancement. Concerned business leaders and visionary philanthropists comprise the ICAF Corporate Advisory Board while some of the world’s most creative children and young people are the ICAF Youth Board Members. For more information, please visit Ashfaq Ishaq, Ph.D., the ICAF founder and chair, can be contacted at Ishaq@ For a complimentary copy of ChildArt, visit


Mind over Matter Interview withTony Cragg

by Rajesh Punj

British Sculptor Tony Cragg’s new works appear as these attractive alien interventions that are as well suited to the set of a science fiction film, as they are “sculptures as stage” as he describes them to critic and correspondent Rajesh Punj. Moving from Liverpool to Wuppertal, in West Germany in late 1970’s, Cragg’s brightly coloured contortions of wood, metal and glass that have been perfectly manipulated by man and machine, represent for the artist a kind of beauty that is closer to nature and as far removed from man’s modernist ideals as his practice allows. Reacting to the atmosphere every single twist and turn of the organic and artificial elements of his works are regarded by the celebrated British sculptor as a moral mutiny against the hardened line and fixed edge that defines everything else. As his new sculptures challenge our understanding of the physical constitution of an object, with its inner workings concealed by its encasing. Focusing on the foundation of a form Cragg invites us to scrutinise over the anatomy of our living and working environment, as we are surrounded by technological apparatus that are operative whilst being unobtrusive. By which the slick simplicity of everything new has rendered an object’s complexity invisible. Yet as much as Cragg’s contemporary works appear as aesthetically appealing as objects of new technology, his is a concern for the ‘sub stance’ of something as he explains it, in order we see within materials the anatomical structure of a more impressive world. Further demonstrating, by virtue of his belief systems, of his wish to examine the natural energy of an object’s existence, as much as he is interested in the physical form itself. Deciding that “for anything that resists gravity requires energy. So trees and people grow up, and with our own body we fight for the entire length of our lives, and the day we stop fighting we just get absorbed by it. That is why gravity is called gravity, because it pulls you into its grave. It takes your energy, your living energy to a zero state.” Seeing “sculpture as a vital extension of us, a vital science, and a sign of vitality of our own existence.” Having organised and ordered everything for much of his adult life, as art stacked, shelved,


packed and placed, Cragg has since absorbed new technology as a way of making works that are impossible to comprehend and accomplish by hand alone; and it is either an irony or an evolution that sees his sculptures being applauded now for their visual sophistication, when his approach in the 1970’s and 1980’s was much more elemental, by virtue of his selecting and intentionally rearranging a series of domestic readymades into creative configurations. In interview determinedly speaking of his replacing the rudimentary with something more rigorous, “with my work I am not interested in chaotic gestures. I am no longer interested in throwing colour at the wall or braking plates, I have gone a long way from that. I don’t really want to do those things even though I know they produce nice effects. I want to keep my hands on the reins of the formal structure inside the work, and by doing that I can influence the outside appearance and my relationship to it. I am not really that happy when things change without my controlling them.” Side-by-side the early forms with his modern manipulations, Cragg concentrates on what is current, replacing the stack of broken bricks and cracked and cut furniture for the whipped up energy of his contemporary bronze and wood works; as he sees sculpture as an opportunity to understand perfection from the inside out. Most striking of all of his new works are the tarnished coloured aluminum sculptures Industrial Nature 2015 and Parts of the World 2015, that might well appear as reconstituted car body parts. Which for Cragg leads us into a parallel sphere of structures within sculptures; which he explains as seeking “a clear rational basis for an internal structure to the thing I am making.” Propositioning “we couldn’t even cope with ultimate reality, we have no idea what ultimate reality looks like. It may not look like anything.” As though our relationship with the real lies in our grasp of the incomprehensible. Further explaining “my work I am not interested in chaotic gestures. I am no longer interested in throwing colour at the wall or

braking plates, I have gone a long way from that. I don’t really want to do those things even though I know they produce nice effects. I want to keep my hands on the reins of the formal structure inside the work, and by doing that I can influence the outside appearance and my relationship to it; and that is how I work. I am not really that happy when things change without my controlling them. It is not a nice way to put it but when things are in the studio they are about as good as they are going to get. Because the minute they start to move to the door they are in a state of decay.” As Cragg sees it “sculpture in the nineteenth century was just about the figure, and of using certain materials to replicate it, and since then there has been an enormous evolution in the last one hundred and twenty years of people realising that sculpture is about the way that all material affects us; so it has become a study of the material world. And that is why it is so relevant. That’s why it is so important because science tells you how things work, but it is only art that gives material meaning, because it becomes more much about the form than the material. And when you get out there what you are confronted with is the form of nature. We are not confronted with nature in this room, but when you step outside you are confronted with either an urban setting or something more rural.” Rajesh Punj is a London based art critic and correspondent, with as an academic background in European and American art history and curating from Warwick University (UK), and Goldsmiths (UK) respectively. He is regularly commissioned by international publications including Harper’s Bazaar Art (Dubai), and Sculpture (Washington).


Investing in Bronzes Its been a special year for Edward Horswell, director of Sladmore, one of the world’s most respected art dealers, recognised as the foremost authority on Rembrandt Bugatti. Most people have heard of engineer Ettore’s glorious automobiles (Ralph Lauren has an Atlantic 57 SC worth $40M plus), but the genius of animal sculptor Rembrandt (almost always in the ‘top ten’) is not a household name. Prices are rising for bronzes, a piece costing £1800/$3000 in 1969, has increased 16-fold since then. A fine bronze panther can reach $1M. UHNW individuals seek out the panthers, tigers and lions, identify with their powerful presence. These magnificent bronzes can be seen in museums and private collections around the world, cherished by financial magnates and captains of industry. Strongest focus currently at Sladmore is Rembrandt Bugatti, who died a hundred years ago. Edward Horswell, co-Director of Sladmore, dealer, connoisseur and scholar, has been devoted to the art of Bugatti since he was twelve years old, when he first encountered a bronze pelican in his parents’ living room. A live barn owl, flown in from the garden was nesting under its wing. This passion has never faltered. Fifth reprint of Horswell’s monograph (Rembrandt Bugatti, Life in Sculpture) was launched earlier this year at Spring Masters, Park Avenue Armory, NYC. Edward’s parents Jane and Harry Horswell, animal lovers extraordinaire with a menagerie of some fifty exotic birds and beasts, collectors of animalier bronzes, established Sladmore in Mayfair, named after their Buckinghamshire farm, in 1965. Edward has extended the gallery range to include sculptors of the human form: Rodin, Degas, Maillol. The world is awash with new records for works of art sold at auction. It seems all the smart people are in on the action. But as an outsider to this often confusing world how can one – with any certainty – put a toe in the water?


When buying art purely for pleasure, what one likes is obviously important, but with an eye on investment finding an art adviser whom you trust is essential. The new collector has three choices: auction, agent or established art gallery. The big auctioneers or ‘art supermarkets’ have considerable expertise in some areas but one should not take it for granted that this is across the board. Today also there are many art agents, some good, some not so good, so it is important to look at their track record and also price results for the work they are proposing you buy. In today’s technological world a large amount of information is readily available online but help will be required in analysing what it all means. If you have decided on an area you wish to pursue then you would be well advised to seek out the leading dealers in this field - after all, they must be doing something right if they are still in business! Naturally over the last 50 years prices have increased, but it is important to look at which artists have appreciated the most and which sculptures. Without fail it is always the best works within an artist’s oeuvre that will appreciate in value the most and these are known in the trade as ‘trophy’ pieces. This is

true across all works of art, paintings, furniture etc. My top investment picks for bronzes would be a key work by Auguste Rodin or Rembrandt Bugatti. For Rodin’s wonderful model of Jean d’Aire (one of the Burghers of Calais) we can chart an auction increase over the last 15 years from $50,000 to $500,000. This tenfold increase is partly due to a reliable authentication service appearing for Rodin’s work in 2007. This is another important factor in buying any major art work - expertise adds value. My mother first sold an example of Bugatti’s sublime Walking Panther in 1969 for £1800. As sleek as any of his brother’s racing cars it has long been the ‘trophy’ piece for any animal lover. My first sale of this model in 1982 realised £25,000 and today a fine quality example would go for at least $600,000. An almost 16-fold increase in 30 years. Prices have been rising to $1M for panthers and lions, cherished by giants of commerce and industry who identify with their powerful presence. Unlike art agents or auctioneers, an established dealer is prepared to invest in the purchase of stock which shows a real commitment and belief in the market and his or her product.




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Introduction Contemporary and Post-War Impressionist and Modern Old Masters and Dynasties Ancient Art Art in Public Places Design Photography Fringe Youniversal and You 2 Image Credits Acknowledgements

“…this exhibition paints a vivid picture of the dynamic interchange of ideas, narratives, styles and images that characterized these eras. It is a useful reminder that globalization is not a new phenomenon. Indeed, it has lain at the foundation of much of our intellectual, artistic, social and economic life throughout history.” Timothy Potts, Director of the J. Paul Getty Museum


The Global Fine Art Awards program honors excellence and innovation in exhibition design, historical context, educational value, and public appeal. The GFAA program recognizes Nominees in 11 juried categories. The program has expanded this year to include 3 new awards and a total of 78 Nominees across 5 continents, 22 countries and 52 cities. During the research process of the program, we strive to find balance in multiple considerations - geographic, demographic, and size, to name a few important criteria. This year, more than 25% of the artist-centric exhibitions are women artists, and there is broad representation in size as well with 32 (40%) of the GFAA nominees from the top 100 art museums visited in the world (The Art Newspaper, April 2015), and 60% emanating from smaller institutions and other venues. Nominees include exhibitions from many prominent museums across the globe: New York’s Whitney Museum of American Art, Solomon R. Guggenheim Museum, The Jewish Museum and The Metropolitan Museum of Art; LACMA; The J. Paul Getty Museum, and The Broad Museum in Los Angeles; the British Museum, The National Gallery, Victoria and Albert Museum, Tate Britain and Tate Modern in London; Le Grand Palais and Château de Versailles in France; the Palazzo Strozzi in Florence; the Rijksmuseum in Amsterdam; the Museo del Prado and Museo Thyssen-Bornemisza in Madrid; National Museum of Modern and Contemporary Art, Korea; Yuz Museum in China; the State Hermitage and the Moscow Kremlin Museums in Russia. These exhibitions and public installations feature works by timeless masters, from Botticelli and Bosch, to Degas and Delacroix, as well as some of the most important artists living today. The 2016 list of Nominees includes Christo, Olafur Eliasson, Susan Philipsz, Sterling Ruby, John Baldessari, Frank Auerbach, Tony Cragg, Danh Võ and Tatsuo Miyajima. The GFAA award program also recognizes group and theme exhibitions. This year’s nominations range from broad period shows, with “Ancient Sicily” and the “Vikings in Ireland”, to “Contemporary Art from Latin America” and in “Creative Africa”. Exhibitions addressing important themes are also nominated for their innovative work – some of these include Class Distinction, Divinity, World Exploration, Communication, and Love. GFAA judges select the winners from this slate of Nominees for these 11 award categories: Contemporary and Post-War (solo and group), Impressionist and Modern; Renaissance (solo and group), Baroque, Old Masters and Dynasties


(solo and group), Ancient Art, Photography, Design, Fringe/Alternative and Public or Outdoor Installation. “Youniversal”, the twelfth award, recognizes the most popular nominee and is selected by public voting on the GFAA website. An integral aspect of our program is to engage the general public, and we include the public’s voice by voting – the most popular exhibition wins our twelfth and final award -Youniversal. To expand our digital presence, we added a new award this year – YOU-2. The Top 10 Nominees, based on the Youniversal votes, became eligible to win this Twitter-based award. The GFAA team produces videos for each of the finalists. These videos are featured in the gallery section of our website, YouTube channel, and shown live at the awards ceremony. Where else can we experience such a stunning collection of the best exhibitions from around the world? The Human Bond The award ceremony is our platform to celebrate all of the nominees. We honor these exceptional exhibitions and public works of art – which involve the efforts of many people to produce the exhibitions, and of course the artists who create these masterpieces. There is so much great art to discover and share – and we believe that the GFAA program will help in some small way to educate people around the world about art and its global messages. The human bond created through understanding art is primordial – art transcends language, time and space. This is both comforting and reassuring, particularly during this time of extreme uncertainty about our future, and the future of our precious planet. Congratulations to all of the Nominees, and thank you for your beautiful work.

Judy Holm, GFAA President and CEO


With much gratitude to the dedicated people who ensure the future success and growth of GFAA, as we honor their commitment to our mission Leadership Team & Advisory Board Suzanne Deal Booth, Danielle Amato-Milligan, Holly Baxter, Jennifer Bishop, Tiffany Chestler, Bonnie Clearwater, Renee Farina, Hogan Fritz, Carolyn Cruz, Suzanne Deal Booth, Christian Gaines, Felipe Gehrke, Louis Grachos, Ivonn Goihman, Eleanor Goldhar, Danny Gonzalez,Peter Hansen, Judy Holm, Stephen Kimmerling, David M. Kraemer, Louis Grachos, Patricia Lannes, Kimberley Lin, Ekaterina Luki, Ann Lydecker Bunge, Salwa Mikdadi, Desiree Moore, Ty Murphy, Betsie Piussan, Gina Quan, Stefano Rabolli Pansera, Nancy Richmond, Terence Riley, Gernot Schussmann, Hedva Ser, Lawrence M. Shindell, Alex Wuchterl, Juan Carlos Zaldivar (interns) Jenna Agres, Dahee Lim, and Stephanie Wong She Wei Advisory Board Emeritus; Corinne Arazi, Cathy Leff, Judge Emeritus Judges Dr. Barbara Aust-Wegemund, Dr. James M. Bradburne, Gina Costa, Dr. Joe Lin-Hill, Dean Phelus Kwittken PR Sam Bowen, Rita Larcher, Gabrielle Pedriani, Jason Schlossberg Special Thanks Bill Charron, Balint Ferenczy, Nicola da Fonseca, Felipe Gehrke, Tyler Jones, Remi Koukou, Karin Lundell, Sam Salman, Ram Salman, Raldo Tan, Fran Vallone GFAA Patrons Founder’s Circle – Patrons $10,000 and above Judith Neilson / White Rabbit Contemporary Chinese Art Collection Benefactors – $1,000 and above Ivonn Goihman, Judy Holm, Stephan Kimmerling, Patricia Lannes, Danielle Amato-Milligan, Ann Lydecker Bunge, Jan Melk, Steve Novak, Bill Peters, Gina Quan, Terence Riley, Dean Brian Schriner and FIU CARTA, Hedva Ser, Lawrence Shindell, Peter Trippi, Ali and John Walecka, Weino Wang Luetke Meyring, Patricia Wyrod Patrons – $500 to $1,000 Eleanor Goldhar, Tyler Jones, David Kraemer, Jennifer Mass, Marcia McCabe, Betsie Piussan, Dean Phelus, Bryan Powell * as of 1/25/17


To Our Award Nominees, Winners, Guests and Supporters Worldwide of GFAA: On behalf of The Global Fine Art Awards as an organization, its President and CEO, Judy Holm, its Art Liaisons representing GFAA across five continents and the entire GFAA Advisory Board, I welcome you tonight to the 2016 awards ceremony. And a ceremony it is. With profound art emanating today from small regions in Central America to areas as vast as Asia and the Middle East, with biennials now spanning the globe, and with the curatorial work of the world’s greatest museum institutions of several generations becoming ever deeper, wider and complex in how they blend the artistic narrative, we all can take great pride in the work of GFAA. GFAA makes art not just about the contributions of any single artist or of any single museum or venue, but about something much larger – a combined recognition that enriches the art world and the vital importance of art for all generations, all living artists today and all artists of the future. Although there are many individual arts awards programs, GFAA is unique as the first international, annual program that is comprehensive in scope. Supported by the many of the world’s major museums, cultural and governmental diplomats from around the world, artists internationally and thought-leaders from the not-for-profit and for-profit sectors of the global arts community, we thank you for joining in tonight’s celebration and recognition of ART. It is GFAA’s privilege, and honor, to celebrate the world’s artistic excellence with you. Lawrence M.Shindell Chair, GFAA Advisory Board Executive Chairman ARIS Title Insurance Corporation Member, Argo Group International Holdings, Ltd.


Best Contemporary / Post-War - solo artist

Rauschenberg in China / Ullens Center for Contemporary Art (UCCA) Beijing, China

Best Contemporary / Post-War – group or theme

Revolution in the Making: Abstract Sculpture by Women, 1947 – 2016 Hauser Wirth Schimmel Gallery / Los Angeles, USA

2016 Nominees (Finalists in bold) Frank Auerbach / Tate Britain / London, England John Baldessari : the Staedel Paintings / Staedel Museum / Frankfurt, Germany Maholy-Nagy: Future Present / Solomon R. Guggenheim / NYC, USA Danh Võ : Ydob eht ni mraw si ti (It is warm in the body) / Museum Ludwig / Cologne, Germany Tony Cragg. Sculptures and Drawings / State Hermitage Museum / St. Petersberg, Russia Barbara Hepworth: Sculpture for a Modern World / Kroller-Muller Museum, Tate Britain, Arp Museum / Otterlo, Netherlands; London, England; Remagen, Germany Nasreen Mohamedi: Waiting is a Part of Intense Living / Reina Sofía / Madrid, Spain Louise Bourgeois. Structures of Existence: The Cells / Guggenheim Museum, Haus der Kunst / Bilbao, Spain; Munich, Germany Debora Arango: Life in All Its Admirable Force / Museo de Arte Moderno / Medellin, Columbia Wyeth: Andrew and Jamie in the Studio / Denver Art Museum, Thyssen-Bornemisza Museum / Denver, USA; Madrid, Spain Illumination: new contemporary art at Louisiana / Louisiana Museum of Modern Art / Humlebaek, Denmark (shared) Simon Denny: Products for Organising / Serpentine Galleries / London, England and Michael Craig-Martin: Transience / Serpentine Galleries- (side-by-side exhibitions) Human Interest: Portraits / Whitney Museum of American Art / NYC, USA Contingent Beauty: Contemporary Art from Latin America / Museum of Fine Arts Houston / Houston, USA


Rauschenberg in China / Ullens Center for Contemporary Art (UCCA) / Beijing, China This exhibition centers on Robert Rauschenberg’s (1925-2008) magnum opus The 1/4 Mile or 2 Furlong Piece (1981–98), its 190 parts stretching 305 meters and exhibited for the first time since 2000. Also included in the exhibition were a selection of Rauschenberg’s color photographs titled Study for Chinese Summerhall, taken during the artist’s travels in China in 1982. Accompanying these works is a collection of documentation and ephemera related to his transformational 1985 exhibition “ROCI CHINA” at the institution now known as the National Art Museum of China, offering a rare glimpse into the historical moment when the artist’s global quest for inspiration and cultural exchange through art put him in front of an emerging generation of Chinese artists, during a period that would later come to be known as the “’85 New Wave.” Organized in collaboration with the Robert Rauschenberg Foundation and curated by Susan Davidson and David White, “Rauschenberg in China” is the first major exhibition in over three decades to showcase the artist’s work to Chinese audiences.


Frank Auerbach / Tate Britain / London, England Frank Auerbach (born 1931) is a British artist who creates some of the most vibrant, alive and inventive paintings of recent times. His depictions of people and the urban landscapes near his London studio show him to be one of the greatest painters alive today. Tate Britain’s exhibition, featuring paintings and drawings from the 1950s to the present day, offers fascinating new insights into his work. The depth,

texture and sense of space in a painting by Auerbach makes standing in front of one a unique and unforgettable experience. For half a century Auerbach has lived and worked in the same part of London, in Camden Town, one of the major subjects of his work. ‘What I wanted to do was to record the life that seemed to me to be passionate and exciting and disappearing all the time.’

John Baldessari : the Staedel Paintings Staedel Museum / Frankfurt, Germany American artist John Baldessari (b. 1931 California) is one of the most influential artists alive today. “200 Years Städel”, the bicentennial celebrations of Frankfurt’s Städel Museum, culminated with a solo exhibition of works by the internationally renowned American artist. Baldessari executed sixteen new pieces related explicitly to the Städel Museum collection, which spans seven hundred years of European art. . A number of very different works from the Städel holdings – masterpieces, but also unusual finds in the storage depots, by Lucas Cranach the Elder,


Agnolo Bronzino, Dirck van Baburen, Bartolomeo Veneto, Justus Juncker, Erró, Maria Lassnig and others – served him as visual material for his large-scale collages. Taking these selected works as his point of departure, the artist explored the relationship between painting and photography, but also that between image and language. The result was a suspenseful and complex consonance/ dissonance that queries old and new art alike and breaks with established patterns of perception.

Moholy-Nagy: Future Present Solomon R. Guggenheim / NYC, USA László Moholy-Nagy (b. 1895, Austria-Hungary; d. 1946, Chicago) experimented with a wide variety of mediums, moving fluidly between the fine and applied arts in pursuit of his quest to illuminate the interrelatedness of life, art, and technology. He expressed his theories in numerous influential writings that continue to inspire artists and designers today. A faculty member at the Bauhaus school of art and design, he taught in Weimar and Dessau in the 1920s. In 1937, he was appointed to head the New Bauhaus in Chicago; he later opened his own School of Design there, which today is part of the Illinois Institute of Technology. Among Moholy-Nagy’s radical innovations were his experiments with cameraless photographs (which he dubbed “photograms”); his unconventional use of industrial materials in painting and sculpture; experiments with light, transparency, space, and motion across mediums; and his work at the forefront of abstraction, as he strove to reshape the role of the artist in the modern world. Moholy-Nagy: Future Present features paintings, sculptures, collages, drawings, prints, films, photograms, photographs, photomontages, projections, documentation, and examples of graphic, advertising, and stage design drawn from public and private collections across Europe and the United States. This exhibition is organized by the Solomon R. Guggenheim Foundation, the Art Institute of Chicago, and the Los Angeles County Museum of Art.


Danh Võ : Ydob eht ni mraw si ti (It is warm in the body) / Museum Ludwig / Cologne, Germany. Vietnamese artist Danh Võ (b.1975) presented his most well-known long-term project We The People in an ex-hibition that was specifically conceived for the Museum Ludwig. This sculptural project is a full-scale replica of the Statue of Liberty comprised of over 250 pieces in total. While most of the fragments are scattered across various public and private collections around the world, the Museum Ludwig is presenting the six-meter-high, largest contiguous piece to date of this expansive copper sculpture. The title of the exhibition, Ydob eht ni mraw si ti, form the sentence “It is warm in the body” read backward. The title gains a further layer of meaning in light of the fact that it is a demonic quotation from the legendary horror film The Exorcist. Danh Võ, who grew up in Copenhagen, combines personal experiences from his childhood in Vietnam and his family’s flight to Europe in his work- with questions of colonialism, migration, and cultural identity. Among the threads that run throughout his work are same-sex relationships and the questioning of behavioral norms, both in society as a whole and in the context of art.

Tony Cragg: Sculptures and Drawings / State Hermitage Museum / St. Petersberg, Russia In his works, Tony Cragg (b. 1949 Liverpool) embarks on an intricate exploration of the existence of sculpture – beyond design, vicissitudes of the museum world and art market. He is engaged with sculpture beyond its aptitude, applicability, practicality or usefulness. What he looks for is the infinite amount of logical variations of its forms. The artist cannot pause to marvel at the human ability to contemplate its existence. In his understanding the sculpture represents a response to this reflection. Artist’s drawings have a different, more subordinate status. They prepare for the birth of sculpture, set up bearings for it, and define its existential justification on a more formal level. Drawings are inseparable from sculptures and live within sculptural figurative laws. These abstract forms on paper potentially will transform into real and thus materialized objects. The exhibition that was specifically designed by the artist for the State Hermitage Museum, and features 55 sculptures and drawings from last two decades, including iconic Minster and Complete Omnivore as well as new glass works.


Barbara Hepworth: Sculpture for a Modern World / KrollerMuller Museum, Tate Britain, Arp Museum / Otterlo, Netherlands; London, England; Remagen, Germany British artist Barbara Hepworth (19031975) is honored with a large-scale retrospective exhibition, organized by Tate Britain in association with the Kröller-Müller Museum and the Arp Museum Bahnhof Rolandseck. In Barbara Hepworth: Sculpture for a Modern World, her career is mapped out step by step, from her early days as an artist in the 1920s to her period as an internationally-famed sculptor towards the end of her life.

Forms in nature The exhibition shows how Hepworth developed her own unmistakable ‘signature,’ drawing inspiration from shapes and forms in nature, sometimes figurative, sometime abstract. Her style was of great significance and influence for the world of modern sculpture. She was meticulous in her selection of materials, and intended her works to harmonize with their respective settings. Outside sculpture

Sculptures from wood, marble, and bronze – all unique due to the incredible craftsmanship with which they are made – are alternated with paintings, drawings, film footage and photographs of the artist at work in her studio or among friends.

The Kröller-Müller Museum’s sculpture garden, includes a large collection of bronze sculptures by Barbara Hepworth owned by the museum, many of which are housed in the Rietveld pavilion


Louise Bourgeois. Structures of Existence: The Cells / Guggenheim Museum, Haus der Kunst / Bilbao, Spain; Munich, Germany This exhibition is part of the innovative, sophisticated sculptural works developed by Louise Bourgeois (1911–2010) over the course of two decades, featuring 28 emotionally charged architectural spaces, each an individual microcosm separating the internal from the external world, by one of the most influential artists of the around the desire to simultaneously remember twentieth century. and forget. “You have to tell your story and you have to forget your story. You forget and forgive. Louise Bourgeois’s concepts It liberates you,” Louise Bourgeois once claimed. and formal inventions, such In this respect, the Cells contain references to as her engagement with individuals and experiences from the past. psychoanalysis and feminism, and her use of environmental This exhibition reunites “Cells” I to VI for the installation and theatrical first time since 1991. For Bourgeois, the word formats, have since become key “Cell” had many connotations, as it refers to the positions in contemporary art. biological cell of a living organism as well as the The “Cell” series revolves isolation of a prison or monastic cell.

Nasreen Mohamedi: Waiting is a Part of Intense Living / Reina Sofía / Madrid, Spain Nasreen Mohamedi (Karachi, 1937 – Baroda, 1990) was one of the first Indian artists to embrace abstraction, moving away from the more conventional doctrines of Indian modern art in the early decades of the 20th century. She chose non-figuration, an artistic practice marginalised at that time by independent India, which was essentially dominated by an anthropomorphous aesthetic and academic realism determined by art schools from the colonial period. Her artistic career, defined by the rigours of self-discipline and self-control, leads us towards a personal vision articulated around a frugal aesthetic and the


use of simple mediums, where the mathematical, the metaphysical, the mystical were adopted in her search for a subjective and immaterial world. The exhibition, organised by the Museo Nacional Centro de Arte Reina Sofía and The Metropolitan Museum of Art, New York, in collaboration with the Kiran Nadar Museum of Art, New Delhi, displays her work – combining thought and action – in the intersections between her life and her art. The show features drawings, photographs, paintings and collages, with a focus on Mohamedi’s work throughout the 1970s.

Debora Arango: Life in All Its Admirable Force / Museo de Arte Moderno / Medellin, Columbia

Débora Arango was born in Medellín (Antioquia) in the early 20th century. Throughout her polemic career, the antioqueña painter worked and experimented with watercolors, oil painting and ceramics. Although she developed a style of her own, Arango’s work relates to one vein of Latin American painting that portrays social reality from the perspective of a local context. She represented it as it was, without any fears, taboos or prejudices. Arango’s frankness along with her portraits of nude women made her work controversial. In this exhibition, Arango’s interests

in the political and the everyday have been arranged in seven groups: nudity, religion, woman and society, family, politics, pleasure and portraiture, which together give a sense of the totality of her oeuvre. She portrayed some of the most troubling aspects of society, especially those that voiced injustice. Additionally, she continued to document the simple daily scenes of her family and social environment, appearing almost idyllic, in contrast to her more controversial work. Despite Arango’s profound religious and social positions, she bluntly captured “life with all its admirable strength” as she called it herself.


Wyeth: Andrew and Jamie in the Studio / Denver Art Museum, Thyssen-Bornemisza Museum Denver, USA; Madrid, Spain This exhibition explores the art of Andrew Wyeth and his son, Jamie Wyeth, two of the most celebrated American painters of the 20th century, and features more than 100 works executed in a variety of media: pen and ink, graphite, chalk, watercolor, dry brush, tempera, oil and mixed media. By looking at the artists’ creative processes through the lens of studio practice, visitors develop a nuanced understanding of the discipline, mastery of technique and imagination inherent in their work. Wyeth is the first exhibition to deeply examine the common threads that run through their works, while illuminating each artist’s distinctive practice.

“… it explores the connection between two artists who are inextricably linked by their shared artistic habits of mind, while each maintaining his own unique artistic voice,” said Timothy J. Standring, the Denver Art Museum’s Gates Foundation Curator of Painting and Sculpture and curator of Wyeth.

Illumination: new contemporary art at Louisiana / Louisiana Museum of Modern Art / Humlebaek, Denmark Illumination unfurls Louisiana’s new acquisitions from the last three years. All genres are represented – film, installation, sculpture, drawing, collage, printmaking, photography and painting. There are new artists who have not been part of the museum’s collection before and artists whose representation they strengthened by acquiring other works. Louisiana is not intending to tell one specific story with the exhibition, however it focuses on some thematic affinities between artists and allows each artist’s work to come into its own. Consequently, the exhibition is more concerned with conveying individual works than the possible unity of the gallery. Illumination introduces a number of positions in contemporary art right now – though essentially every


work of art belongs to the artist before it becomes art history. The exhibition features major works by established artists in Louisiana’s collection, including Gerhard Richter, Julie Mehretu, Cindy Sherman and Andreas Gursky. This is part of a compilation of two sprawling exhibitions (Illumination and Fire Under Snow). More than 163 works by 71 artists – among them 37 who are new to the collection – from around 28 different countries.

Revolution in the Making: Abstract Sculpture by Women, 1947 – 2016 / Hauser Wirth Schimmel Gallery Los Angeles, USA

The inaugural exhibition of Hauser Wirth & Schimmel at its new complex in Los Angeles features nearly 100 works made by 34 artists over the past seventy years. It includes works on loan from nearly 60 major American museums, artists’ estates, and private collections, as well as new sculptures commissioned for the exhibition. The exhibition traces ways in which women have changed the course of art by transforming the language of sculpture since the postwar period. The exhibition examines how elements that are central to art today, including engagement with found, experimental, and recycled materials, as well as contingency, imperfection, and unstructured play. In seeking new means to express their own

voices, women dramatically expanded the definition of sculpture. Throughout the evolution of time is the changing use of the human body as form and contenta central theme. At mid-century, they began to turn away from the dominant masculinist language of art to articulate female sensibility, using more sensuous materials and the intimate processes of the handmade. The late 1940s and 1950s saw women asserting their own content into the formal geometries of post-war abstract sculpture. The collision of PostMinimalism and feminism in the 1960s and 1970s witnessed women making their boldest breakthroughs and pioneering a ‘no going back’ course for subsequent generations.


Michael Craig-Martin: Transience / Serpentine Galleries London, England (shared) This exhibition by Michael Craig-Martin (b. Dublin, 1941) brought together works from 1981 to 2015, including his era-defining representations of once familiar yet obsolete technology; laptops, games consoles, black-andwhite televisions and incandescent lightbulbs that highlighted the increasing transience of technological innovation. The exhibition also featured new wallpaper that had been conceived especially for the exhibition. From the earliest work in the show, a wall drawing first produced in 1981 (the same year that the first personal computer was made available), to a painting

from 2014 that depicts the minimal lines of an iPhone, Craig-Martin’s work has recorded the profound impact that electronic technology has had on the way we consume and communicate. The exhibition explored the seismic shift from analogue processes to digital technologies that informed the production and distribution of new kinds of objects in the late 20th and early 21st centuries. The two nominated Serpentine Gallery exhibitions focused on the role technology plays in contemporary life. Running concurrently was an exhibition of works by Simon Denny.

Simon Denny: Products for Organising / Serpentine Galleries / London, England (shared) This is the first solo show of Simon Denny (b. 1982, New Zealand) in London. The exhibition featured entirely new work, with installations that revolved around contemporary radical management practices and the historical hacker organisational forms that may have inspired them. The exhibition divided the Gallery into two sections labelled Products for Emergent Organisations and Products for Formalised Organisations. In the former, a series of vitrines showcased within a scaffolding structure displayed information and materials mapping organisational logic used by today’s computer-hacker communities,


presenting a timeline of events. This was illustrated through a combination of technological objects such as computers and everyday items including T-shirts and magazines. In the later, Denny created a new series of sculptural artworks that used commercial tech companies such as Zappos and Apple, alongside the Government Communications Headquarters (GCHQ) – the British intelligence and security organisation. These sculptures, inspired by the circular floor plans of the three organisations’ iconic headquarters, shed light on their similar managerial models.

Human Interest: Portraits / Whitney Museum of American Art / NYC, USA This exhibition offers new perspectives on one of art’s oldest genres. Drawn entirely from the Museum’s holdings, the more than 200 works show changing approaches to portraiture from the early 1900s until today. Bringing iconic works together with lesser-known examples and recent acquisitions in a range of mediums, the exhibition unfolds in eleven thematic sections.

Whitney. Yet this exhibition offers diverse and often unconventional portraiture. Many artists reconsider the pursuit of external likeness—portraiture’s usual objective—within formal or conceptual explorations or reject it altogether. Once a rarefied luxury good, portraits are now ubiquitous. The proliferation of smartphones and the rise of social media have unleashed an unprecedented stream of portraits. Many contemporary artists confront this situation, stressing the fluidity of identity in a world where technology and the mass media are omnipresent. Through their varied takes on the portrait, the artists represented in Human Interest raise provocative questions about who we are and how we perceive and commemorate others.

Some of these groupings concentrate on focused periods of time, while others forge links between the past and the present. This sense of connection is one of portraiture’s most important aims, whether memorializing famous individuals or calling to mind loved ones. Portraits were championed by the museum’s founder, Gertrude Vanderbilt






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Contingent Beauty: Contemporary Art from Latin America / Museum of Fine Arts Houston / Houston, USA This exhibition features a selection of major works by 21 established artists from Argentina, Brazil, Colombia, Cuba, Mexico, and Venezuela. Encompassing a variety of media including drawing, sculpture, video, and interactive objectand video-based installations, the exhibition highlights contemporary artists who use seductive and engaging materials to convey their social, political, and environmental concerns.

dialogue that cuts across chronological and geographic borders. Contingent Beauty intertwines aesthetic refinement with biting critiques of timely issues grounded in the complex realities of Latin America and its long history of colonization, political repression, and economic crisis. These issues range from poverty, violence, gender, government corruption, and globalization, to the war on drugs and the legacy of colonialism.

Drawn primarily from the Museum’s permanent collection of modern Latin American art, one of the most comprehensive collections of its kind in any public institution. The exhibition also features work by mid-career Latin American artists, generating a dynamic

The “beauty� of these works is contingent upon contextual interpretation. Each piece harbors a tension between opposing elements, such as beauty and violence, seduction and repulsion, or elegance and brutality.


Best Impressionist / Modern – solo artist

Degas: A New Vision / National Gallery of Victoria, Museum of Fine Arts Houston / Melbourne, Australia; Houston, USA

Best Impressionist / Modern – group or theme (TIE)

The Lost Symphony: Whistler and the Perfection of Art / Smithsonian’s Freer and Sackler Galleries / Washington DC, USA Jewel City: Art from San Francisco’s Panama-Pacific International Exposition de Young / Fine Arts Museums of San Francisco / San Francisco, USA 2016 Nominees (Finalists in bold)

Delacroix and the Rise of Modern Art / National Gallery / London, England Jean Dubuffet: Metamorphoses of a Landscape / Fondation Beyeler / Basel, Switzerland Joan Miro: Painting Walls, Painting Worlds / Schirn / Frankfurt, Germany Alberto Giacometti Retrospective / Yuz Museum / Shanghai, China Georgia O’Keeffe / Tate Modern, Art Gallery of Ontario / London, England / Toronto, Canada Colour Unleashed. Modern Art in the Low Countries 1885-1914 / Gemeentemuseum Den Haag / The Hague, Netherlands A Century of Style: Costume and Colour / Glasgow Museums / Glasgow, UK Divine Beauty: from Van Gogh to Gauguin and Fontana / Palazzo Strozzi, The Vatican Museums / Florence, Italy Noir: The Romance of Black in 19th-Century French Drawings and Prints The J. Paul Getty Museum / Los Angeles, USA Visiting Masterpieces: Pairing Picasso / Museum of Fine Arts Boston / Boston, USA Painters of light. From Divisionism to Futurism / Fundación MAPFRE, Mart Museum / Madrid, Spain; Rovereto, Italy


Degas: A New Vision / National Gallery of Victoria Museum of Fine Arts Houston (MFAH) Melbourne, Australia; Houston, USA This exhibition is the most significant international survey in nearly 30 years of the work of Hilaire-Germain-Edgar Degas (1834–1917). The image of this celebrated French artist has often been focused on his ballet imagery, and yet Degas’s rich, complex, and abundant oeuvre spans many themes, genres as well as mediums.

Not since the landmark international retrospective Degas in 1988 has the artist’s career been fully assessed. Degas: A New Vision benefits from the scholarship of many thematic exhibitions, yet puts Degas back fully together again, and offers an opportunity to experience the artist anew.

The MFAH is the only U.S. venue for this exhibition, which assembles some 200 works from public and private collections around the world. Degas: A New Vision showcases the continuity of the artist’s abiding interests across painting, drawing, photography, printmaking, and sculpture from the beginning to the end of his career.

The MFAH developed Degas: A New Vision with the National Gallery of Victoria in Melbourne, Australia, site of the show’s June 2016 world premiere. The Houston installation features most of the works presented at the NGV, as well as some 60 additional loans exclusive to the MFAH.


Delacroix and the Rise of Modern Art / National Gallery London, England From the bold colours and abstract shapes of Matisse and Kandinsky, to the expressiveness of Van Gogh and Gauguin, to the vibrant complementary colours of the Impressionists. All can be traced back to Eugène Delacroix – the last painter of the Grand Style but equally one of the first modern masters, who transformed French painting in the 19th century. This exhibition was an homage to France’s leading exponent of Romanticism – a true original who, at the time of his death in 1863, was the most revered artist among the avantgarde in Paris. Drawing inspiration from British art and

literature, his real and imagined travels to North Africa, and biblical scenes; every aspect of human passion can be found in Delacroix’s paintings – stories of love, murder, violence, and war. “The first merit of a painting is to be a feast for the eye,” he emphasised towards the end of his life. Placing Delacroix alongside contemporaries such as Courbet and Chassériau, this exhibition traces 50 years of Delacroix’s legacy, exploring the profound impact he had on generations of artists to come. This exhibition was organised in collaboration with the Minneapolis Institute of Art.

Jean Dubuffet: Metamorphoses of a Landscape Fondation Beyeler / Basel, Switzerland Jean Dubuffet (1901–1985) is one of the defining artists of the second half of the 20th century. Stimulated by the work of artists on the margins of the cultural scene, Dubuffet succeeded in liberating himself from traditions. His influence is seen in contemporary art and street art, for example in the work of David Hockney, Jean-Michel Basquiat and Keith Haring. Ernst Beyeler was deeply impressed by Dubuffet’s art and a close collaboration ensued, including exclusive gallery representation for decades. In the first large-scale Dubuffet retrospective in Switzerland this


century, the exhibition presents the artist’s richly facetted and multilayered oeuvre with more than 100 works. It starts with Dubuffet’s fascinating idea of landscape, which in his hands can transform itself into a body, a face or an object. The artist experimented with new techniques and materials, such as sand, butterfly wings, sponge and slag, and thereby created a wholly individual and unique visual universe. Alongside paintings and sculptures from the artist’s oeuvre, the exhibition is also showing his spectacular Coucou Bazar, a multimedia work of art combining painting, sculpture, theatre, dance and music.

Joan Miro: Painting Walls, Painting Worlds / Schirn Frankfurt, Germany Joan Miró (1893–1983) once famously declared that he wanted to assas¬si¬nate painting. Today he is recog¬nized as one of the greatest artists of the 20th century. With a focused solo exhi¬bition, the SCHIRN presents a previ¬ously littlediscussed aspect of the Catalan artist’s work- his pref¬er¬ence for large-scale formats and his fasci¬na¬tion with the wall. From early on, the wall was the starting point for his painting – the wall as an object to be depicted, and which at the same time would deter¬mine the phys¬ical and tactile quality of his painting.

equated the picture plane with the wall. By using different colored grounds, burlap, hard¬board, sand¬paper and tarpaper, he created unique visual worlds of monu¬mental dimen¬sions and outstanding mate¬ri¬ality. The exhi¬bi¬tion covers over half a century of Miró’s oeuvre, which includes around 50 works of art from promi¬nent museums world¬wide, such as the National Gallery of Art, Wash¬ington DC, the Solomon R. Guggen-heim Museum, New York, the Museo Reina Sofía Madrid and the Centre Pompidou, Paris as well as impor¬tant private collec¬tions.

Miró distanced himself from the simple repro¬duc¬tion of reality and

An exhi¬bi¬tion in coop¬er¬a¬tion with Kunsthaus Zurich.


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Alberto Giacometti Retrospective / Yuz Museum Shanghai, China With 250 masterpieces ranging from 1917 to 1966 and a comprehensive overview of the artist’s career, this is one of the major exhibitions of 2016 endorsed by the Chinese and the French governments. This Alberto Giacometti’s (b. 1901 Borgonovo, Switzerland, d. 1966) retrospective, fifty years after his death, is not only the first Giacometti exhibition in China, but also the world’s largest retrospective to date, after Paris – Centre Pompidou (2007).

the sculpture of “walking man” created by him, owning to the depiction of the postwar human psychology and the humanistic spirit of the 20th century, have become immortal masterpieces in the art history. Giacometti had profound impact on the development of the postwar modern art, and has inspired numerous artists of the East and the West. He has influenced many Chinese artists` practice as well as their perception to modern art.

One of the greatest sculptors and artists of the 20th century, is widely regarded as the embodiment of the spirit of modernism. Artistic images including

This Exhibition is made possible by Yuz Foundation, in partnership with Fondation Giacometti, Paris.

Georgia O’Keeffe / Tate Modern, Art Gallery of Ontario London, England / Toronto, Canada Making her debut a century ago, in 1916, Georgia O’Keeffe (b. 1887 d. 1986) was immediately recognised as a trailblazing artist, while today her legacy as a pioneer of twentieth-century art is widely renowned. She was a foundational figure within the history of modernism in the United States, and during her lifetime became an American icon. Her career spanned more than seven decades and this exhibition encompasses her most productive years, from the 1910s to the 1960s. It aims to dispel the clichés that persist about O’Keeffe’s painting, emphasising instead the pioneering nature and breadth of her career. O’Keeffe is

perhaps best known for her paintings of magnified flowers, animal skulls, and New Mexico desert landscapes. This exhibition brings together some of her most important works, including Jimson Weed/White Flower No. 1 1932, the most expensive painting by a female artist ever sold at auction. With no works by O’Keeffe in UK public collections, this exhibition, which was comprised of over 100 paintings, offered a rare opportunity to see the beauty and skill of her paintings outside the US. ‘I paint because colour is a significant language to me.’ Georgia O’Keeffe


Colour Unleashed. Modern Art in the Low Countries 1885-1914 / Gemeentemuseum Den Haag / The Hague Netherlands This exhibition takes us back to the period between 1885 and 1914 – a time when painting was experiencing a modern renaissance and colour was being liberated from the constraints of visual reality. It was a break with the tradition in which colour served primarily to reflect the visible world. Towards the end of the 19th century, colour became an autonomous medium that artists could use to convey optical effects of light, impressions and emotions. A close comparison of the art historical and social developments of this period reveals that the two were inextricably linked. Colour Unleashed showed an overview of the Dutch and Belgian developments in painting in one of the most fertile periods in Western art history, including the influence of Paris on Dutch and Belgian artists around 1900. Experimentation with colour reached its peak shortly before the outbreak of WWI. Futurist and Cubist influences produced a dazzling display of colour. As art moved towards

abstractionism, artists began to use colour to give intense expression to their sensations. As the War continued, optimism disappeared. Many Dutch and Belgian artists abandoned the experiment with colour and moved towards a darker form of expressionism.

A Century of Style: Costume and Colour / Glasgow Museums / Glasgow, UK This beautiful exhibition of 19thcentury clothing came from Glasgow Museums’ collection of European costume. Showcasing some rarely seen examples of womenswear, menswear and children’s clothing, it considered how such clothes were made and where they were sold, as well as revealing the stories of some of the people who wore them. The displays featured dresses and outfits made with delicate embroidered


cottons and elaborate woven silks, as well as beautiful wedding dresses and opulent evening gowns. Leading Glaswegian department stores and dressmakers were represented in the exhibition, alongside an exquisite beaded couture dress from Paris. There was also a wide range of accessories on show, including delicate jewellery, bonnets, colourful shawls, purses and even a metamorphic parasol.

Divine Beauty: from Van Gogh to Gauguin and Fontana Palazzo Strozzi, The Vatican Museums / Florence, Italy This exhibition featured over one hundred works by well-known Italian and international artists, exploring the relationship between art and religion from the mid-19th to the mid-20th century. The Italian artists included Domenico Morelli, Gaetano Previati, Felice Casorati, Gino Severini, Renato Guttuso, Lucio Fontana and Emilio Vedova, as well as works by international masters- Vincent van Gogh, JeanFrançois Millet, Edvard Munch, Pablo Picasso, Max Ernst, Stanley Spencer, Georges Rouault and Henri Matisse. Highlighting different takes on modernity, trends and occasionally even

clashes in the relationship between art and religious sentiment, the exhibition analyzes and sets in context a century of modern religious art. The exhibition is a joint venture between the Fondazione Palazzo Strozzi, the former Soprintendenza Speciale per il Patrimonio Storico, Artistico ed Etnoantropologico e per il Polo Museale della cittĂ di Firenze, the Archdiocese of Florence and the Vatican Museums, as part of a programme of events devised to run concurrently with the Fifth National Bishops Conference.


Noir: The Romance of Black in 19th-Century French Drawings and Prints / The J. Paul Getty Museum / Los Angeles, USA In the mid nineteenth century, French artists began depicting shadowy, often nocturnal or twilight scenes in which forms appear to emerge out of darkness. This quest for darkened realms led them to explore new subject matter, such as dream states and non-idealized representations of contemporary life. The range and availability of black drawing materials exploded with the Industrial Revolution, along with improvements in working methods. This coincided with an interest in painterly techniques, not only in drawing but also

in printmaking. It is impossible to say what influences came first, but what followed was a graphic exploration of darkness that constitutes an important moment in the history of Modernism. This exhibition examines the inspiration that artists drew from their materials, and their expression of darkness in all its imaginative and narrative associations. Works are drawn from the Museum’s permanent collection and loans from private and public Los Angeles collections.

Jean Dubuffet: Metamorphoses of a Landscape Fondation Beyeler / Basel, Switzerland This dossier exhibition centers on pairing and juxtaposing works by Pablo Picasso (1881–1973). A loan of four major works from the Fondation Beyeler in Basel, Switzerland, and loans from private collections complement the MFA’s holdings of painting and sculpture by the artist, looking at different stages of his career and his exploration of form. The single gallery format of the


exhibition allows for a “closeness” with the works of art. “Visiting Masterpieces: Pairing Picasso” offers a unique opportunity to study the artist’s range of techniques and styles, with themes including the stylistic transformation of the human figure, variation of a single subject across works, and emulation of revered artistic forebears.

Painters of light. From Divisionism to Futurism Fundación MAPFRE, Mart Museum / Madrid, Spain Rovereto, Italy Painters of light. From Divisionism to Futurism / Fundación MAPFRE, Mart Museum / Madrid, Spain; Rovereto, Italy This exhibition examines the development of Divisionism, which had such a strong influence on the renewal of Italian art between the late 19th century and the early 20th century, most particularly in the training of the artists who were to lead the Futurist movement. Scarcely heard of outside Italy, the movement arose in 1891 at the Triennale di Brera in Milan, Divisionism is distinguished from movements in other countries by the fact that it viewed new research into the decomposition of light and color as a means of expressing “modern” topics from a twofold perspective: “social”

issues that reflect the difficulties of the poorest classes in the new united Italy and the more advanced international trends associated with Symbolism. The revolutionary force of the Divisionist language was to lay the groundwork for the birth of Futurism, an avant-garde movement founded in 1909 by Filippo Tommaso Marinetti. The Divisionist principle of the decomposition of colors, found a particularly effective application in the depiction of landscapes. The common goal was to create a more direct relationship with nature, experienced en plein air with a view to capturing its light according to the weather conditions, the time of day and the mood of the painter.


The Lost Symphony: Whistler and the Perfection of Art Smithsonian’s Freer and Sackler Galleries / Washington DC, USA

This exhibition tells the story of “The Three Girls,” a painting which is part of a series of exhibitions inspired by the Peacock Room, a 19th-century dining room created by Whistler. This is an exhibition about a painting that does not exist- a rescued fragment, numerous studies and the frame that Whistler decorated especially for “The Three Girls” all hint at what might have been. The painting, destroyed by its artist James McNeill Whistler (1834–1903) following a conflict with his patron Frederick Leyland, would have been a seminal work in Whistler’s oeuvre—if he had completed it. He planned the painting to be a fourth “symphony in white,” another iteration in a series of experimental pictures in which he


eliminated conventional subject matter and concentrated instead on idealized arrangements of color and form. Late in the work’s evolution, Whistler intended to hang the large painting opposite his “Princess from the Land of Porcelain,” the centerpiece of the Peacock Room. However, in 1877, after the artist and patron quarreled over the cost and extent of Whistler’s redecoration of the Peacock Room, Whistler abandoned “The Three Girls” and destroyed the canvas. The exhibition reconstructs how Whistler’s unrealized quest for “the perfection of art” intersected with lessrarified concerns about patronage, payment and professional reputation.

Jewel City: Art from San Francisco’s Panama-Pacific International Exposition / de Young Fine Arts Museums of San Francisco / San Francisco,USA In celebration of the centennial of the original 1915 Panama-Pacific Exposition that inaugurated post-1906 Earthquake San Francisco as a cultural capital on the West Coast, this ambitious exhibition drew together more than 200 works originally exhibited at the fair, drawn from private collections and museums all over the world. Included were works by John Singer Sargent, Claude Monet, Umberto Boccioni, and Edvard Munch; photographs, prints, statues, and restored oversize murals and other

works not seen on view since 1915. Galleries were designed to replicate those at the fair, creating a fully immersive experience that began in the museum’s lobby atrium, which featured a monumental mural commissioned for the fair by William de Leftwich Dodge, appropriately named “Atlantic and Pacific” and originally installed in the archway of the Exposition’s Tower of Jewels, the architectural centerpiece of the fair.


Best Renaissance, Baroque, Old Masters Dynasties – solo artist (shared)

Jheronimus Bosch – Visions of a Genius / Noordbrabants Museum Noordbrabants, Netherlands Bosch. The 5th Centenary Exhibition / Museo del Prado / Madrid, Spain

Best Renaissance, Baroque, Old Masters Dynasties – group or theme

Traversing the Globe through Illuminated Manuscripts / The J. Paul Getty Museum / Los Angeles, USA 2016 Nominees (Finalists in bold) The Tricentenniel of Giuseppe Castiglione’s Arrival in China / National Palace Museum / Taipei, Republic of China (Taiwan) Adriaen van de Velde: Master of the Dutch Landscape / Rijksmuseum / Amsterdam, Netherlands (and Dulwich Picture Gallery / London) Botticelli Reimagined / Victoria and Albert Museum / London, England Caravaggio and the Painters of the North / Museo Thyssen-Bornemisza / Madrid, Spain The Recovery of Antiquity: From the Renaissance to Neoclassicism in France and Italy / Montreal Museum of Fine Arts / Montreal, Canada Scottish Artists 1750 - 1900 / Royal Collection Trust, Queen’s Gallery / Edinburgh, Scotland; London, England Boris Godunov: From a Courtier to the Sovereign of all of Russia / The Moscow Kremlin / Moscow, Russia Class Distinctions: Dutch Painting in the Age of Rembrandt and Vermeer / Museum of Fine Arts Boston / Boston, USA


The Tricentenniel of Giuseppe Castiglione’s Arrival in China / National Palace Museum / Taipei, Republic of China (Taiwan)

Giuseppe Castiglione (1688-1766) was born in Milan, Italy, and studied painting from a young age. He left for China in 1714, arriving in Beijing by the end of 1715. Under the Chinese name Lang Shining, he was assigned as an artist, serving the Qing imperial household under the Kangxi, Yongzheng, and Qianlong emperors for nearly 51 years and died in 1766. Castiglione used traditional Chinese paper and silk, pigments, and brushes in working with the Ruyi Hall painters, achieving renown for developing a new syncretic style of court painting “joining China and the West.” The year 2015 marks the tri-centennial of the artist’s arrival in China and the 90th anniversary

of the National Palace Museum’s beginnings, in commemoration and celebration of which the Museum has specially gathered approximately 100 objects created by or related to him. In addition to displaying works from the National Palace Museum, others have been borrowed from the Palace Museum in Beijing, the Metropolitan Museum of Art in New York, and the Pio Istituto Martinez House for Elders in Genoa. With this special exhibition, the National Palace Museum offers a comprehensive portrayal of Giuseppe Castiglione’s career in painting as well as his achievements in and contributions to the history of Sino-Western exchange in the 18th century.


Jheronimus Bosch – Visions of a Genius / Noordbrabants Museum/ Noordbrabants, Netherlands (shared)

Photo: Marc Bolsius Hieronymus Bosch is viewed worldwide as the most intriguing and exciting Dutch artist of the late Middle Ages. The exhibition was the highpoint of Jheronimus Bosch 500 – a series of events organised throughout 2016 in Den Bosch to mark the 500th anniversary of the artist’s death. The exhibition included the vast majority of his surviving paintings and drawings, and was based on the most comprehensive research ever performed into the artist’s oeuvre. Never before have so many of Bosch’s works returned to his hometown of Hertogenbosch, where he created them. After six years of intensive and comprehensive research


and restauration, the team of experts ultimately attributed 24 paintings and 20 drawings to Bosch himself. No fewer than 17 of these paintings and 19 drawings were on view in the exhibition. The exhibition also included six paintings that the researchers believe were made by assistants of Hieronymus Bosch at his workshop on the main square in Den Bosch. In addition to these, a series of objects were displayed that sketched the cultural context in which Bosch’s works were produced, including rare 15th and 16th-century manuscripts, printed books, prints, sculpture, and brass, silver and gold metalwork.

Bosch. The 5th Centenary Exhibition / Museo del Prado / Madrid, Spain (shared) The exhibition marks the 5th centenary of the death of Jheronimus Bosch, one of the most enigmatic and influential artists of the Renaissance.

Paradise to Hell; The Garden of Earthly Delights; The World and Men: Mortal Sins and non-religious works; and The Passion of Christ.

It is the largest number of Bosch’s works ever to be assembled. The 5th Centenary Exhibition focuses on the artist’s original works and is divided into seven sections. The first, “Bosch and ’s-Hertogenbosch”, locates visitors in the city where the artist lived throughout his life. Given the monographic character of this exhibition and due to the difficulty of establishing a chronology for Bosch’s works, his oeuvre has been divided into six thematic sections: The Childhood and Ministry of Christ; The Saints; From

Spain has the finest group of original paintings by the artist, all of which are included in the exhibition. The Prado, which together with Patrimonio Nacional inherited the Spanish royal collection, now houses six of his works. The fact that for the first time it brings together most of the artist’s masterpieces will decisively contribute to resolving some of the questions that relate to his work, both with regard to establishing his corpus and reconsidering issues of dating.


Adriaen van de Velde: Master of the Dutch Landscape Rijksmuseum / Amsterdam, Netherlands (and Dulwich Picture Gallery / London) Son of the famous marine painter Willem van de Velde the Elder and brother of the equally famous Willem van de Velde the Younger, child prodigy Adriaen became a landscape painter – and a phenomenal draughtsman. His figure and animal studies – usually drawn in red chalk – are regarded as sublime examples of the genre. This is the first ever major retrospective of work by Adriaen van de Velde (16361672), one of the greatest landscape painters of the Golden Age. The exhibition features sixty paintings, preliminary studies and drawings by the talented artist.

By reuniting Van de Velde’s refined paintings with their preliminary drawings, the exhibition presents a representative idea of his oeuvre and gives us a unique insight into his working method.

For much of his short life – he died when he was just thirty-five – he was regarded as one of the greatest artists of the seventeenth century. His posthumous fame endured until the mid-twentieth century. Today, the public is barely aware of his name.

Botticelli Reimagined / Victoria and Albert Museum / London, England This innovative exhibition explored the enduring impact of the Florentine painter Sandro Botticelli (1445-1510) from the Pre-Raphaelites to today. Although lauded in his lifetime, Botticelli was largely forgotten for more than 300 years until his work was progressively rediscovered in the 19th century. The exhibition revealed the ways that artists and designers have reinterpreted Botticelli through painting, fashion,


film, drawing, photography, tapestry, sculpture and print. It included over 50 original works by Botticelli, alongside works by artists such as Dante Gabriel Rossetti, Edward Burne-Jones, William Morris, René Magritte, Elsa Schiaparelli, Andy Warhol and Cindy Sherman. The exhibition was organised by the V&A and the Gemäldegalerie – Staatliche Museen zu Berlin.

Caravaggio and the Painters of the North / Museo Thyssen-Bornemisza / Madrid, Spain This exhibition focuses on Michelangelo Merisi da Caravaggio (Milan, 1571 – Porto Ercole, 1610) and his influence on the northern European artists who were fascinated by his painting and disseminated his style. Curated by Gert Jan van der Sman, professor at the University of Leiden and a member of the Istituto Universitario Olandese di Storia dell’Arte in Florence, the exhibition analyses the artist’s legacy and the wide variety of responses that his work provoked. On display are 53 paintings, twelve of them by Caravaggio, loaned from private collections, museums and institutions including the Metropolitan Museum of Art, New York,

the Galleria degli Uffizi, Florence, the Hermitage Museum, Saint Petersburg, the Rijksmuseum, Amsterdam, and the church of San Pietro in Montorio in Rome. The exhibition offers a survey of Caravaggio’s career from his Roman period to the moving dark paintings of his final years, shown alongside a selection of works by his most important followers in Holland (Dirk van Baburen, Gerrit van Honthorst and Hendrick Ter Brugghen), Flanders (Nicolas Régnier and Louis Finson) and France (Simon Vouet, Claude Vignon and Valentin de Boulogne).


The Recovery of Antiquity: From the Renaissance to Neoclassicism in France and Italy / Montreal Museum of Fine Arts / Montreal, Canada Presented in connection with an exhibition on Pompeii, The Recovery of Antiquity features a selection of graphic works from the Museum’s collection, including several recent acquisitions. It presents works by French masters like François Boucher, Jean-Baptiste Greuze and Anne-Louis Girodet, as well as several Italian artists. Some of these works are being exhibited for the first time. Over fifty prints and drawings testify to the appreciation and increasingly methodical recovery of visual Antiquity

in Italy and France from the sixteenth through the early nineteenth century. From the engravings of Marcantonio Raimondi after designs by Raphael to the spectacular eighteenth-century etchings of Giovanni Battista Piranesi exalting the still-visible remains of ancient Rome to the early nineteenthcentury illustrations after designs by Anne-Louis Girodet for works written by ancient authors, is the constant reinterpretation and changing visions of different generations regarding their own interface with Antiquity.

Scottish Artists 1750 - 1900 / Royal Collection Trust, Queen’s Gallery / Edinburgh, Scotland; London, England Scottish Artists brings together paintings, drawings and miniatures collected by monarchs from George III to Queen Victoria. Monarchs from George III onward have collected works by Scottish artists — paintings and drawings that now form a distinct group within the Royal Collection, and provide a fascinating way to explore developments in both British artistic styles and in royal patronage.


This exhibition highlights the importance and international influence of artists whose work was shaped by the ideas of the Scottish Enlightenment, and whose inspiration remained firmly rooted in their native land. It features works by Allan Ramsay, who was born and trained in Edinburgh and become painter to the King, and later figures such as Sir Francis Grant, David Roberts, John Phillip, Alexander Nasmyth, and James Giles.

Traversing the Globe through Illuminated Manuscripts / The J. Paul Getty Museum / Los Angeles, USA Considering networks rather than boundaries, connectivity rather than isolation, and a world of cross-cultural artistic interaction, Traversing the Globe through Illuminated Manuscripts, explored the strong connections between Europe and the broader world during the Middle Ages and Renaissance. Drawn primarily from the Getty Museum’s collection of illuminated manuscripts, complemented by related decorative arts and prints, as well as important loans from collections across Los Angeles, the exhibition offers a rich view into how people in Europe, Africa, Asia, and the Americas communicated

and thought about their place in the world. The nearly 80 works on display have been selected to illustrate the exchange of ideas, styles, and materials that took place between the East, West, and cross-geographic centers and periphery regions, during the 9th to the early 17th centuries. Contrary to popular belief, premodern Europe was
a place of fluid cultures, blurred boundaries and
multi-ethnic centers. The Middle Ages and Renaissance were periods in which the world was known to be round, a concept that can be traced intellectually back to the classical world and various places around the globe, and people from Europe, Africa, and Asia interacted with great frequency.


Boris Godunov: From a Courtier to the Sovereign of all of Russia / The Moscow Kremlin / Moscow, Russia

This exhibition is the first ever monographic museum project devoted to Boris Godunov- one of the key figures in the Russian history. Born as a commoner, he became the first elected ruler of the country- as a result of an election, not by right of inheritance. The exhibition reveals his role in territorial expansion and institutional development of the Russian state, in the grandiose constructions of fortifications, and establishment of patriarchy in Russia. Development of international relations with European and Eastern countries were emphasized by splendid ambassadorial gifts.


The exhibition highlighted Godunov’s role in the modernization of Russian political culture, his openness to the new tendencies in science, intention to develop trade and attract foreigners to service in Russia. The exhibition included about 150 items, most of which date back to the 16th and 17th centuries. They included masterpieces of icon painting, miniature books, pictorial and decorative embroidery, jewelry and armor. The display was completed with such important items as manuscripts, rare books, maps and memoirs of foreigners – witnesses of the events of that time.

Class Distinctions: Dutch Painting in the Age of Rembrandt and Vermeer / Museum of Fine Arts Boston / Boston, USA This groundbreaking exhibition proposes a new approach to understanding 17thcentury Dutch painting. Through 75 carefully selected, beautifully preserved portraits, genre scenes, landscapes and seascapes borrowed from European and American public and private collections—including masterpieces never before seen in the United States— the show reflects, for the first time, the ways in which paintings represent the various socioeconomic groups of the new Dutch Republic, from the Princes of Orange to the most indigent. Class distinctions had meaning and were expressed in the type of work depicted (or the lack thereof), costumes, a figure’s comportment and behavior, and his physical environment. Arranged according to 17th-century ideas about

social stratification, paintings by artists such as Rembrandt, Vermeer, Jan Steen, Pieter de Hooch, Gerard ter Borch and Gabriel Metsu, are divided broadly into three classes—upper, middle and lower—and within them, into subgroups. Nobles, merchants, and milkmaids are among the figures in the thematic groupings, reflecting the social order of the new Dutch Republic. A final section explores the places where the classes in Dutch society met one another. Paintings depicting the meeting of the classes are among the liveliest of the era. Three table settings of objects used by each class, but diverging in material and decoration—highlight differences among the classes.


Best Ancient Art Pergamon and the Hellenistic Kingdoms of the Ancient World The Met Fifth Avenue / NYC, USA 2016 Nominees (Finalists in bold) Sunken cities: Egypt’s lost worlds / British Museum / London, England Viking Ireland / National Museum of Ireland / Dublin, Ireland Sicily: culture and conquest / British Museum / London, England


Pergamon and the Hellenistic Kingdoms of the Ancient World / The Met Fifth Avenue / NYC, USA The conquests of Alexander the Great transformed the ancient world, making trade and cultural exchange possible across great distances For the first time in the United States, a major exhibition will focus on the astonishing wealth, outstanding artistry, and technical achievements of the Hellenistic period—the three centuries between Alexander’s death, in 323 B.C., and the establishment of the Roman Empire. This exhibition brings together some 264 artworks that were created through the patronage of the royal courts of the Hellenistic kingdoms, with an emphasis on the ancient city of Pergamon. Examples in diverse media— from marble, bronze, and terracotta sculptures to gold jewelry, vessels of glass and engraved gems, and precious

metals and coins—reveal the enduring legacy of Hellenistic artists and their profound influence on Roman art. The ancient city of Pergamon (now known as Bergama, in present-day Turkey) was the capital of the Attalid Dynasty that ruled over large parts of Asia Minor. The exhibition represents a historic collaboration between The Met and the Pergamon Museum in Berlin, whose celebrated sculptures comprises approximately one-third of the works. Numerous prominent museums in Greece, the Republic of Italy, other European countries, Morocco, Tunisia, and the United States will also be represented, often through objects that have never before left their museum collections.


Sunken cities: Egypt’s lost worlds / British Museum / London, England Vanished beneath the Mediterranean, the lost cities of Thonis-Heracleion and Canopus lay at the mouth of the Nile. Thonis-Heracleion was one of Egypt’s most important commercial centres for trade with the Mediterranean world and, with Canopus, was a major centre for the worship of the Egyptian gods. Their amazing discovery is transforming our understanding of the deep connections between the great ancient civilisations of Egypt and Greece. Preserved and buried under the sea for over a thousand years, the stunning objects in the exhibition range from

magnificent colossal statues to intricate gold jewellery. Sacred offerings and ritual objects reveal the cult of Osiris – the god of the underworld who held the promise of eternal life. The two celebrated cultures feature historical figures such as Alexander the Great, Cleopatra, Hadrian and Antinous. Over the last 20 years, archaeologist Franck Goddio and his team have excavated underwater discoveries using the latest technologies. They are exhibited alongside objects from major Egyptian museums for the first time in the UK.

Viking Ireland / National Museum of Ireland / Dublin, Ireland Vikings and their descendants had a profound impact on Ireland, from their first appearance just before 800AD until after 1150AD. Traditionally seen as raiders and invaders, Vikings also helped transform Ireland economically, culturally and politically. This exhibition explores the Viking Age in Ireland through surviving objects – including objects from Viking graves of the 9th and 10th centuries and from settlement sites of the 10th to 12th centuries.


At the centre of the exhibition is a display of finds from the Museum’s excavations in Dublin, the most important Viking site in Ireland. This is one of the finest collections of excavated finds from an early medieval site anywhere in Europe. A final section displays church metalwork and other ecclesiastical material of the 11th and 12th centuries, which shows how Scandinavian features were absorbed into Irish culture, including art styles, in the later Viking Age.

Sicily: culture and conquest / British Museum London, England Sicily has been shaped by waves of conquest and settlement by different peoples over 4,000 years. Since the 8th century BC, Phoenicians, Greeks, Romans, Byzantines, Arabs and Normans all settled or invaded the island, lured by its fertile lands and strategic location. Over time, this series of conquests forged a cultural identity unlike any other. This exhibition tells Sicily’s fascinating stories – from the arrival of the Greeks and their encounters with the Phoenicians and other settlers, to the extraordinary period of enlightenment under Norman rule in the 11th to 13th centuries. For much of its history, Sicily

was admired and envied for its wealth, cultural patronage and architecture. In the exhibition, ancient Greek sculpture, architectural decorations from temples, churches and palaces, early coinage, stunning gold jewellery, and Norman mosaics and textiles demonstrate Sicily’s diversity, prosperity and significance over hundreds of years. The island has a truly cosmopolitan history and identity – a place where the unique mix of peoples gave rise to an extraordinary cultural flowering. The art and objects they produced are some of the most beautiful and important in the history of the Mediterranean.


Best Public Art Christo and Jeanne-Claude: The Floating Piers / Lake Iseo / Lake Iseo, Italy 2016 Nominees (Finalists in bold) Tatsuo Miyajima: Time Waterfall / International Commerce Centre (ICC) building (projection) / Hong Kong, China Art Paris Fair - light exhibit faรงade / Grand Palais - Art Paris Fair / Paris, France Olafur Eliasson / Palais de Versailles / Versailles, France Magda Szwajcowska and Michal Majewski : Micro-installations / Lower Silesian Festival of Architecture (DoFA) / Wroclaw, Poland William Kentridge: Triumphs and Laments - A Project for Rome / River Tiber / Rome, Italy


Christo and Jeanne-Claude: The Floating Piers / Lake Iseo / Lake Iseo, Italy For sixteen days – June 18 through July 3, 2016 – Italy’s Lake Iseo was reimagined. 100,000 square meters of shimmering yellow fabric, carried by a modular floating dock system of 220,000 highdensity polyethylene cubes, undulated with the movement of the waves as The Floating Piers rose just above the surface of the water. Visitors experienced this work of art by walking on it from Sulzano to Monte Isola and to the island of San Paolo. A 3-kilometer-long walkway was created across the water of Lake Iseo. “Those who experienced The Floating Piers felt like they were walking on

water – or perhaps the back of a whale,” said Christo. “The light and water transformed the bright yellow fabric to shades of red and gold throughout the sixteen days.” The project was first conceived by Christo and Jeanne-Claude together in 1970. It was Christo’s first largescale project since Christo and JeanneClaude realized The Gates in 2005, and since Jeanne-Claude passed away in 2009. As with all of Christo and JeanneClaude’s projects, The Floating Piers was funded entirely through the sale of Christo’s original works of art. After the exhibition, all components were removed and industrially recycled.


Tatsuo Miyajima: Time Waterfall / International Commerce Centre (ICC) building (projection) Hong Kong, China Coinciding with Art Basel, Tatsuo Miyajima presents Time Waterfall, a large-scale public light installation projected onto the façade of the iconic International Commerce Centre (ICC) building in Hong Kong’s harbour. Co-commissioned by Art Basel and ICC, Time Waterfall was screened intermittently every evening from March 21 to 26, 2016. This new work by Miyajima aims to convey the eternal luminance of human life, expressing an ethos of ‘living in the present’. The work comprises numbers one to nine, cascading down the face of the building, never reaching zero. The continuous counting down symbolises life, while the zero implied

by the extinction of light is a metaphor for death. Each number appears in a different size and speed, creating a number of layers so that each represents a trajectory of individual lives. He continues his signature use of lightemitting diodes (LED), demonstrating his three fundamental concepts – ‘Keep Changing’; ‘Connect with Everything’; and ‘Continue Forever’. The absence of zero in his works refers to the Buddhist concept of ‘Sunya’, which symbolizes the void or non-existence. The use of numbers becomes Miyajima’s universal language, allowing his work to be appreciated and adapted internationally.

Art Paris Fair - light exhibit façade / Grand Palais - Art Paris Fair / Paris, France Art Paris Art Fair 2016 developed a brightly colored series of digital artists’ works choreographed on the façade of the Grand Palais, venue of the fair. This installation features three Korean artists (the fair’s highlight this year is South Korea), and other international artists as well. They include video mapping techniques that play with the architecture by deepening the space.


Their projections are like windows that open onto other spaces. It is the only contemporary art fair to offer this type of performance in France, and even more impactful, being displayed on the Grand Palais, an iconic and historic building. This reflects the objective of the curators to offer a free show to the public and not only to the professionals at the fair.

Olafur Eliasson / Palais de Versailles Versailles,France The work of visual artist Olafur Eliasson (IS/DK, 1967) investigates perception, movement, embodied experience, and feelings of self. Since 2008 the Palace of Versailles has put on a number of exhibitions dedicated to French or foreign artists, each one lasting a few months- the artists have all created a special dialogue between their works and the Palace and Gardens of Versailles. “With Olafur Eliasson, stars collide, the horizon slips away, and our perception blurs. The man who plays with light will make the contours of the Sun-King’s palace dance” says Catherine Pegard, President of the Château de Versailles.

“I am thrilled to be working with an iconic site like Versailles. As the palace and its gardens are so rich in history and meaning, in politics, dreams, and visions, it is an exciting challenge to create an artistic intervention that shifts visitors’ feeling of the place and offers a contemporary perspective on its strong tradition. I consider art to be a co-producer of reality, of our sense of now, society, and global togetherness. It is truly inspiring to have the opportunity to co-produce through art today’s perception of Versailles” explains Eliasson.


Magda Szwajcowska and Michal Majewski : Microinstallations / Lower Silesian Festival of Architecture (DoFA) / Wroclaw, Poland Founded by Magda Szwajcowska and Michal Majewski, Wrocław-based “no studio” has a portfolio contained of works that range from temporary architecture to product design to small architecture. For the local festival Lower Silesian Festival of Architecture (DoFA ), they created the ‘microinstallations’, a series of small interventions in the urban space that aims to restore the forgotten city and its neglected locations. The project

is located close to the historic bridge, on some unused concrete stairs that lead to the river, where the studio has placed simple half-chairs, half-sunbeds to recover the area, inviting people to sit down, sunbathe, and enjoy the view. ’microinstallations’ showcases a minimalistic design and was made with little financial resources. The project thinks about the whole city based on needs analysis and exploration of rifts in urban planning.

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William Kentridge: Triumphs and Laments - A Project for Rome / River Tiber / Rome, Italy A contemporary artwork, inspired by the eternal city Triumphs and Laments (2016) is a 500 meter-long frieze, on the travertine embankment walls that line Rome’s urban waterfront. Exploring dominant tensions in the history of the Eternal City from past to present, a procession of figures, up to 10 meters high, will represent Rome’s greatest victories and defeats from mythological time to present, forming a silhouetted procession on Piazza Tevere, between Ponte Sisto and Ponte Mazzini. The work premiered in April with a theatrical event created in collaboration with composer Philip Miller, featuring live shadow play and two processional bands performing against the backdrop

of the frieze. Hidden within the meandering snake of the river Tiber, Piazza Tevere was founded on an underutilized, central section between Ponte Sisto and Ponte Mazzini – equal in size and proportion to the ancient Circus Maximus. A stage for contemporary art on the city’s waterfront, Piazza Tevere is the cornerstone of a long-term urban initiative led by TEVERETERNO and conducted in partnership with local institutions, governmental agencies, and community partners, working together to create a public gathering space; a venue for art beyond the traditional confines of museum, gallery, or concert hall; a commons – a piazza for the Tiber.


Best Design Manus x Machina: Fashion in an Age of Technology The Met Fifth Avenue / NYC, USA 2016 Nominees (Finalists in bold) Zaha Hadid / Fondazione Berengo / Venice, Italy David Chipperfield: Naga Museum / Venice Biennale, Sudan / Venice, Italy; Sudan Atmosphere for Enjoyment: Harry Bertoia’s Environment for Sound / Museum of Arts and Design / NYC, USA Sterling Ruby / The Belvedere Museum Winterpalace / Vienna, Austria Made in the Americas: The New World Discovers Asia / Museum of Fine Arts Boston / Boston, USA Roberto Burle Marx: Brazilian Modernist / The Jewish Museum / NYC, USA


Manus x Machina: Fashion in an Age of Technology The Met Fifth Avenue / NYC, USA The Costume Institute’s spring 2016 exhibition explored how fashion designers are reconciling the handmade and the machine-made in the creation of haute couture and avant-garde ready-to-wear. With more than 170 ensembles dating from the early 20th century to the present, the exhibition addresses the founding of the haute couture in the 19th century, when the sewing machine was invented, and the emergence of a distinction between the hand (manus) and the machine (machina) at the onset of mass production. It explores this ongoing dichotomy, in which hand and machine are presented as discordant tools in the creative process,

and questions the relationship and distinction between haute couture and ready-to-wear. The exhibition houses a series of haute couture and ready-towear ensembles which are decoded to reveal their hand/machine DNA. A 2014 haute couture wedding dress by Karl Lagerfeld for Chanel with a 20-foot train occupies a central cocoon, with details of its embroidery projected onto the domed ceiling. The scuba knit ensemble, one of the inspirations for the exhibition, stands as a superlative example of the confluence between the handmade and the machine-made–the pattern on the train was hand-painted with gold metallic pigment, machine-printed with rhinestones, and hand-embroidered with pearls and gemstones.


Zaha Hadid / Fondazione Berengo / Venice, Italy Coinciding with the start of the 15th Venice Architecture Biennale, Palazzo Franchetti will become the backdrop to an exhibition dedicated to the late Zaha Hadid. Hosted by Fondazione Berengo, the retrospective featured many of the unique seminal paintings and models created by the architect herself; the collection reflecting the dynamism of her projects. From paintings to photography to film, early in her career Hadid had particular interest in the Russian avant-garde, exploring the composition techniques of fragmentation, layering and porosity that transcend all her projects.

Hadid described her process, “my paintings really evolved thirty years ago because I thought the architectural drawings required a much greater degree of distortion and fragmentation to assist our research – but eventually, it affected the work of course. in the early days of our office the method we used to construct a drawing or painting or model led to new, exciting discoveries. We sometimes did not know what the research would lead to – but we knew there would be something, and that all the experiments had to lead to perfecting the project.”

David Chipperfield: Naga Museum / Venice Biennale Sudan / Venice, Italy; Sudan Inside the Giardini’s central pavilion at the 2016 Venice Architecture Biennale, British architect David Chipperfield‘s ongoing ‘Naqa Museum’ in Sudan has been displayed. The exhibition provides an insight of the project and fundamentally questions the elegance of containment and the reasons why a classic approach in architecture makes sense in remote situations. The new museum is primarily designed to protect


excavated objects from the tough conditions caused by sun, sandstorms, rain and looters, and was first proposed in 2008. The exhibition offers an overall impression of both the scheme and its context. It includes models, interviews with individuals connected to Naga, a film focusing on the archaeological excavation, as well as a small range of objects from the excavation itself.

Atmosphere for Enjoyment: Harry Bertoia’s Environment for Sound / Museum of Arts and Design NYC, USA AHarry Bertoia (b. Italy 1915, d. United States 1978) created much of his work from metal wire and rods; toward the middle of his career, he discovered that when the rods strike one another, they make lush, resonant sounds. These sounding or tonal sculptures would become collectively known as Sonambient, a combination of the Latin roots of the words “sound” and “environment.” In 1968 Bertoia began to set up the eighteenth century stone barn on his property in Pennsylvania, to house a selection of his sounding sculptures and gongs. There he recorded 360 (known) reel-to-reel tapes of the sculptures. The barn is still standing today, with ninety-one original sounding

sculptures installed inside, as Bertoia had intended them: an environment for sound. This exhibition captures the essence of Bertoia’s vast body of work through sound, interactivity, performances, and a range of ephemera. With the Sonambient Barn as a central character in the history of this important body of work, the exhibition has been designed around approximating the experience of hearing these sculptures played in situ. Bertoia said, “We are confronted with this puzzle of … a sculptural element breaking the silence, it has a voice, hence we listen to it, maybe there is something to say.”


Sterling Ruby / The Belvedere Museum Winter palace Vienna, Austria Sterling Ruby (born on an American Air Force base in Germany in 1972), one of the most influential and innovative artists of our time, is enigmatic, controversial and unpredictable. He works prolifically in a wide range of media. Through his varied practice he conducts an assault on traditional artistic materials and social structures, referencing subjects that include marginalized societies, maximum-security prisons, modernist architecture, artefacts and antiquities, graffiti, bodybuilders, the mechanisms of warfare, cults and urban gangs. He engages with issues related to autobiography, art history, and the violence and pressures within society. He vacillates between the fluid and the static, the minimalist and the expressionist, the pristine and tarnished.

former residence of Prince Eugene of Savoy, Ruby’s works are particularly extraordinary due to the contrast and comparison between the two historical periods and between the two aesthetics. The exhibition represents a survey of the artist’s work including ceramics, bronze, steel and urethane sculptures, mobiles, soft works and tapestries- creating visual and conceptual opposition when set against the backdrop of the celebration of warfare throughout the Winter palace.

Within this historic context in the richly decorated baroque rooms of the

Made in the Americas: The New World Discovers Asia Museum of Fine Arts Boston / Boston, USA Within decades of the “discovery” of America by Spain in 1492, goods from Asia traversed the globe via Spanish and Portuguese traders. The Americas became a major destination for Asian objects and Mexico became an international hub of commerce. The impact of the importation of these goods was immediate and widespread, both among the European colonizers and the indigenous populations, who readily adapted their own artistic traditions to the new fashion for Asian imports. “Made in the Americas” is the first large-scale, Pan-American exhibition to examine the profound influence of Asia


on the arts of the colonial Americas. Featuring nearly 100 of the most extraordinary objects produced in the colonies, this exhibition explores the rich, complex story of how craftsmen throughout the hemisphere adapted Asian styles in a range of materials— from furniture to silverwork, textiles, ceramics, and painting. Exquisite objects dating from the 17th to the early 19th centuries, include talavera ceramics copied from imported Chinese porcelains, elaborately decorated furniture inspired by imported Japanese lacquer, and luxuriously woven textiles made to replicate fine silks and cottons imported from China and India.

Roberto Burle Marx: Brazilian Modernist / The Jewish Museum / NYC, USA Roberto Burle Marx (1909–1994) was one of the most influential landscape architects of the twentieth century. He is best known for his iconic seaside pavements on Rio de Janeiro’s Copacabana Beach, and for his abstract, geometric garden designs. But his work encompasses an enormous range of artistic forms and styles: Burle Marx was a painter and sculptor; a designer of textiles, jewelry, theater sets, and costumes; a ceramicist and stainedglass artist. He revolutionized garden design by using abstraction and grand colorful sweeps of local vegetation, abolishing symmetry and rejecting imported flora and European models. He viewed the role of the landscape architect in

ideal terms: to mitigate the loss of the primeval garden and repair the rift between humanity and nature. Burle Marx’s gardens are works of modern art, making use of flat planes, abstract shapes, and bold color, and also because the prompt awareness of oneself in relation to the built environment. He was an early practitioner of a contemporary style as well: integrating art with political concerns such as ecology. Also featured in this exhibition are seven artists inspired by him, with ties to Latin America, all born after 1950- Juan Araujo, Paloma Bosquê, Dominique Gonzalez-Foerster, Luisa Lambri, Arto Lindsay, Nick Mauss, and Beatriz Milhazes.


Best Photography (shared) Robert Mapplethorpe: The Perfect Medium Los Angeles County Museum of Art (LACMA) / Los Angeles, USA The J. Paul Getty Museum / Los Angeles, USA 2016 Nominees (Finalists in bold) Diane Arbus: In the Beginning / The Met Breuer / NYC, USA Yook Myong-Shim Retrospective / National Museum of Modern and Contemporary Art / Seoul, Korea Annie Leibovitz : WOMEN: New Portraits / global / Frankfurt, NYC, Zurich Burnt Generation: Contemporary Iranian Photography / Candlestar / London, England Strange and Familiar: Britain as Revealed by International Photographers / The Barbican / London, England Cindy Sherman: Imitation of Life / The Broad / Los Angeles, USA Public to Private / National Museum of Modern and Contemporary Art, Korea / Seoul, Korea Edward Steichen / Galerie Clairefontaine / Luxembourg, Luxembourg Evandro Teixeira: The Constitution of the World / Museo de Arte do Rio / Rio de Janeiro, Brazil Paul Strand: Photography and Film for the 20th Century / Victoria and Albert Museum / Philadelphia Museum of Art / Fundaciรณn MAPFRE / London, England; Philadelphia USA; Madrid, Spain


Diane Arbus: In the Beginning / The Met Breuer NYC,USA As part of the inaugural season at The Met Breuer, this exhibition features more than 100 photographs of the most influential and provocative artists of the 20th century. It highlights neverbefore-seen early work of Diane Arbus (1923–71), focusing on the first seven years of her career, from 1956 to 1962— the period in which she developed the idiosyncratic style and approach for which she has been recognized, praised, criticized, and copied the world over. Through the course of these seven years (the period in which she primarily used a 35mm camera), an evolution took place—from pictures of individuals of chance encounters to portraits in which the chosen subjects became engaged participants, with as much stake in the outcome as the photographer.

This greatly distinguishes Arbus’s practice from that of her peers, who believed that the only legitimate record was one in which they, themselves, appear to play little or no role. In almost complete opposition, Arbus sought the poignancy of a direct personal encounter. Nearly half of the photographs that Arbus printed during her lifetime were made in this period. They reveal the salient characteristics of her work— its centrality, boldness, intimacy, and apparent artlessness—present in her protographs since the very beginning. Arbus’s work after 1962 is well documented and already the stuff of legend; now, for the first time, we can properly examine its origins.


(shared) Robert Mapplethorpe: The Perfect Medium LACMA / Los Angeles County Museum of Art / Los Angeles, USA

Robert Mapplethorpe’s practice as an artist was characterized by inherent dualities. He sought what he called “perfection in form” in everything from acts of sexual fetishism to the elegant contours of flower petals. This exhibition explores Mapplethorpe’s body of work through early drawings, collages, sculptures, and Polaroid photography; materials from his archive; portraits, still lifes, and figure studies; rare color photographs; and two seldomseen moving image works. A companion


exhibition is presented simultaneously at the J. Paul Getty Museum. The exhibition at LACMA highlights the artist’s relationship to New York’s sexual and artistic undergrounds, as well as his experimentation with a variety of media. The companion exhibition at the Getty explores Mapplethorpe’s disciplined studio practice and his fascination with classical form and the fine photographic print. The exhibition curators are Britt Salvesen, Prints and Drawings, and Photography, LACMA, and Paul Martineau of The Getty.

(shared) Robert Mapplethorpe: The Perfect Medium The J. Paul Getty Museum / Los Angeles, USA Robert Mapplethorpe is among the most influential visual artists of the late twentieth century. This major retrospective exhibition reexamines the arc of his photographic work from its humble beginnings in the early 1970s to the culture wars of the 1990s. Featuring portraits, nudes, still lifes, and the controversial X Portfolio, the exhibition explores Mapplethorpe’s studio practice and the creation of his foundation,

which has shepherded his legacy into the 21st century. Drawn from the landmark acquisition from the Robert Mapplethorpe Foundation, two complementary presentations, one at the J. Paul Getty Museum and another at the Los Angeles County Museum of Art, highlight different aspects of the artist’s complex oeuvre.


Yook Myong-Shim Retrospective / National Museum of Modern and Contemporary Art / Seoul, Korea By projecting his own unique perspectives onto his surroundings, he has been able to form a true rapport with subjects and thereby he has succeeded in capturing scenes that reveal what are most Korean. As a theorist he laid the foundation for active discussions on contemporary photography in the barren wilderness of the Korean photography scene of the time, and as an educator he has focused his efforts

on helping his students develop their own distinctive way of looking at things. Yook entered the world of photography when he was over thirty years old. At the time Korean photography was divided into two camps: realistic photography and salon photography. He was the first who established in Korea an arena where discourses on contemporary photography could be formulated and shared.

Annie Leibovitz: WOMEN: New Portraits / global cities Leibovitz’s new work is a continuation of a project that began over fifteen years ago when her most enduringly popular series of photographs, ‘Women’, was published in 1999. Susan Sontag, with whom the original project was a collaboration, called it “a work in progress”. ‘WOMEN: New Portraits’ reflects the changes in the roles of women today and as a body of work is evolving throughout the duration of the exhibition tour, across the globe in ten cities. The new portraits feature women


of outstanding achievement including artists, musicians, CEOs, politicians, writers and philanthropists. In addition to the new photographs, the exhibition includes work from the original series, as well as other unpublished photographs taken since. Annie Leibovitz said: “When I asked UBS about updating the WOMEN’s project there was no hesitation. They said let’s do it, and they have been extraordinary in every way. It’s such a big undertaking and a broad subject, it’s like going out and photographing the ocean.”

Burnt Generation: Contemporary Iranian Photography Candlestar / London, England This was the first of a series of major photography events that Candlestar produced leading up to the opening of the inaugural edition of Photo London, and now the exhibition is traveling to multiple locations internationally. The exhibition seeks to convey the impact of decades of political unrest and social upheaval upon the Iranian people, bringing together work by eight contemporary photographers that had rarely been seen outside Iran. The photographers are Azadeh Akhlaghi; Gohar Dashti; Shadi Ghadirian; Babak Kazemi; Abbas Kowsari; Ali Nadjian/ Ramyar Manouchehrzadeh; Newsha Tavakolian and Sadegh Tirafkan.

Featuring documentary photography, portraiture and fine art photography, Burnt Generation has three central themes: the isolation, loneliness and desolation of youth; the common threads that unite the Nation in spite of everything; and the personal, political and social consequences of war. By presenting rarely-seen work by these photographers, the exhibition presents an opportunity to move to a place beyond clichĂŠ; a moment to forget the stereotypical images of Iran and enter the distinctive personal, cultural histories of these highly original and intellectually engaged image makers.


Strange and Familiar: Britain as Revealed by International Photographers / The Barbican London, England

Curated by the iconic British photographer Martin Parr, Strange and Familiar considers how international photographers from the 1930s onwards have captured the social, cultural and political identity of the UK. From social documentary and portraiture to street and architectural


photography, the exhibition celebrates the work of leading photographers, including Henri Cartier-Bresson, Rineke Dijkstra, Robert Frank and Garry Winogrand. Bringing together over 250 compelling photographs and previously unseen bodies of work, Strange and Familiar presents a vibrant portrait of modern Britain.

Cindy Sherman: Imitation of Life / The Broad Los Angeles, USA The Broad’s first special exhibition is a comprehensive survey of the work of artist Cindy Sherman. Cindy Sherman: Imitation of Life is the first major museum show of Sherman’s work in Los Angeles in nearly 20 years. Since The Broad collection has the largest holding of her work in the world, inaugurating their opening with this exhibition resonates well. Most well-known for photographs that feature the artist as her own model playing out media-influenced female stereotypes in a range of personas, environments, and guises, Sherman shoots alone in her studio, serving as director, photographer, make-up artist, hairstylist, and subject. Her decadeslong performative practice has produced many of contemporary art’s most iconic and influential images. In her work,

Sherman proposes powerful questions about identity, representation, and the role of images in contemporary culture. From screen siren and pin-up to socialite and businesswoman, the roles Sherman depicts through her monumental body of work provocatively engage with contemporary life’s mediated personas and stereotypes, drawing not only from art history but also from the histories of advertising, cinema, and media.

Public to Private / National Museum of Modern and Contemporary Art, Korea / Seoul, Korea This exhibition explores and illuminates how photography has been developing as a unique and mature visual language and form in itself whilst interacting with other forms of contemporary visual languages in last three decades of contemporary Korean art.

values of international society. Korean society responded to the rapidity of globalization through the hosting of the 1988 Olympics and the 1989 liberalization of overseas travel, and the views and attitudes of photographers underwent a tremendous change.

There were many world-shaking events in 1989 that were of great significance to globalization, such as Tiananmen Square protest in China, the fall of the Berlin Wall in Germany, and Perestroika in the Soviet Union (August 1990)- the end of the Cold War transforming the

Public to Private reveals how those photographers and contemporary artists have appropriated, used, and reformatted into their own visual languages the medium of photography in the global contemporary art scene.


Edward Steichen / Galerie Clairefontaine Luxembourg In the context of Luxembourg’s Presi¬dency of the Council of the European Union during the second half of 2015, the Photomeetings honour the world renowned, Luxembourg-born photographer Edward Steichen with a one man show at Galerie Clairefontaine, Espace 1, on Place Claire¬fontaine. In a second location, Espace 2, rue du St-Esprit, a curated exhibition with photographs by Edward Steichen, in dialogue with images by five

contemporary photographers from Luxembourg, are displayed: François Besch, Andrés Lejona, Michel Medinger, Lé Sibenaler and Marc Wilwert. The title of this eleventh edition is “Six Lives in Photography”, inspired by Ed¬ward Steichen‘s autobiography “A Life in Photography”. The photographers were chosen according to their photographic journey so far, and their evolution in the Luxembourg art scene.

Evandro Teixeira: The Constitution of the World / Museo de Arte do Rio / Rio de Janeiro, Brazil This exhibition presents the almost 60-year oeuvre of one of the most important photojournalists of Brazil. More than 150 works show the ability of the photographer to document news to build the image and experience of facts. Thus, the visitor is invited to cross various aspects of city life – how the universe from the beach, of music and of the student demonstrations, military dictatorship, the outback and the indigenous question, Neruda’s death and the Chilean policy. Evandro Teixeira occupies a unique place in the history of Photojournalism. His career of nearly five decades at the Jornal do Brazil-political icon of journalistic quality and graphics in the field of communication – makes him a constant inspiration to future generations.


“Evandro makes photography a daily Act of resistance to the opacity of the world, intimate and imbued with ID, “ comments the curator, Paolo Herkenhoff.

Paul Strand: Photography and Film for the 20th Century / Victoria and Albert Museum / Philadelphia Museum of Art / Fundación MAPFRE / London, England Philadelphia USA; Madrid, Spain

This major retrospective presents the work of a critical figure in the history of modern art, American photographer and filmmaker Paul Strand (1890–1976), whose archive of nearly 4,000 prints stands as a cornerstone of the Museum’s collection. Emphasizing the influential artist’s most important projects from the 1910s through the 1960s, the exhibition surveys Strand’s entire life’s work, including his breakthrough trials in abstraction and candid street portraits, close-ups of natural and machine forms, and extended explorations of the globe. This exhibition includes approximately

250 of Strand’s finest prints, selected primarily from the Museums’ holdings, with important early prints from public and private collections. The wide range of imagery highlights how Strand radically changed his work at several key moments in an effort to identify photography’s pivotal role as a means of understanding and describing the modern world. The exhibition also features works by fellow artists from the Alfred Stieglitz circle (Georgia O’Keeffe, John Marin, and Arthur Dove), screenings of Strand’s films, and a selection of archival materials.


Best Fringe / Alternative Susan Philipsz: War Damaged Musical Instruments / Tate Britain London, England 2016 Nominees (Finalists in bold) Centre of Arts and Nature - 8th Season / Chateau Chaumont sur Loire / Chaumont, France A Labour of Love / The Museum of World Cultures / Frankfurt, Germany From Kandinsky to Pollock. The Art of the Guggenheim Collections / Fondazione Palazzo Strozzi and the Solomon R. Guggenheim Foundation / Florence, Italy “Alexander Calder in Gstaad”, which coincides with “Calder & Fischli/Weiss” at the Fondation Beyeler in Basel / Hauser & Wirth / Fondation Beyeler / Basel and Gstaad, Switzerland Painting with Light, Art and Photography : from the Pre-Raphaelites to the Modern Age / Tate Britain / London, England El Macro Mural Barrio de Palmitas / German Crew / Pachuca, Mexico Creative Africa / Philadelphia Museum of Art / Philadelphia, USA Making & Unmaking: An exhibition curated by Duro Olowu / Camden Arts Centre / London, England


Susan Philipsz: War Damaged Musical Instruments Tate Britain / London, England This installation features fourteen recordings of British and German brass and wind instruments damaged in conflicts over the last 200 years, where the artist worked with the architecture of the space devising a sequence of sounds. The notes recorded are based on the tones of the military bugle call ‘The Last Post’, fragmented to such an extent that it is almost unrecognisable. The tune signalled to lost and wounded soldiers that it was safe to return to base and is used today as a final farewell in military funerals and Remembrance ceremonies. Forming part of the 14-18 NOW arts programme to commemorate the First World War centenary, the work features

several instruments from that period, and has a special resonance with the history of Tate Britain, as part of the site was originally a military hospital that treated soldiers injured in the First World War. It is also a poignant reminder that conflict and loss are present in the world today. Philipsz explains, “I am less interested in creating music than to see what sounds these instruments are still capable of, even if that sound is just the breath of the player as he or she exhales through the battered instrument. All the recordings have a strong human presence.”


Centre of Arts and Nature - 8th Season / Chateau Chaumont sur Loire / Chaumont, France As the first Centre of Arts to look at the relationship between artistic creation and nature, the Domaine de Chaumontsur-Loire invites visual artists and photographers to come and lend their own interpretation to the atmosphere that reigns here. The commissions the artists complete in this regard (all of the exhibits at Chaumont-sur-Loire are created specially for the Domaine) bestow fresh emotion and aesthetic discovery upon the park and château. Each guest artist experiments with materials, situations and hitherto unexplored contexts. An array of long-lasting showpieces are on

display in the historical park and Château (Andy Goldsworthy, El Anatsui, Cornelia Konrads, Christian Lapie, Vincent Barré, Nikolay Polissky, Armin Schubert, Giuseppe Penone, Patrick Dougherty, Tadashi Kawamata, François Méchain, Rainer Gross, Anne and Patrick Poirier, Dominique Bailly, Gerda Steiner and Jörg Lenzlinger, Sarkis, Jannis Kounellis, Luzia Simons and Mathieu Lehanneur). The installation in 2016 also features works by Mexican artist Gabriel Orozco, designed specifically for Château de Chaumont-sur-Loire as part of a special commission from the Centre-Loire Valley Region.

A Labour of Love / The Museum of World Cultures Frankfurt, Germany This exhibition, with more than 150 works by black South African artists, was first shown in Frankfurt 28 years ago, and has been augmented by significant new works. The selection of works from the Weltkulturen Museum’s South Africa collection focuses on different ways of interpreting the notion of love in the works themselves as well as their historical contexts: love between man and woman, woman and woman, man and man; the love of a mother and child, brother and sister, activist and fellow campaigner. But the works also referenced the forms of love in complex hierarchical relationships, for example, between a missionary and the “missionized”, mentor and student, or patron and artist, where the dynamics driven by religion, faith,


politics, activism and economics play a major role. The exhibition invoked these diverse definitions of love, yet simultaneously evoked the passion and commitment behind their production. It consequently reflected not only a political struggle but also the feeling of love – a love which includes the passionate fight for freedom just as much as it is human love and a love of humanity.

From Kandinsky to Pollock. The Art of the Guggenheim Collections / Fondazione Palazzo Strozzi and the Solomon R. Guggenheim Foundation / Florence, Italy

Over one hundred masterpieces of European and American art from the 1920s to the 1960s, in a narrative that reconstructs the relationship and the ties between the two sides of the Atlantic through the lives of two leading American collectors, Peggy and Solomon Guggenheim. The exhibition – the result of a cooperative venture involving the Fondazione Palazzo Strozzi and the Solomon R. Guggenheim Foundation in New York – offers a unique opportunity to compare and contrast the crucial work of European masters of modern art such as Marcel Duchamp, Max Ernst, Man Ray and Pablo Picasso and European masters of so-called Art Informel, or “Unformed Art,” such

as Alberto Burri, Emilio Vedova, Jean Dubuffet, Lucio Fontana, with works by some of the most important artists on the American art scene in the 1950s and 1960s- Jackson Pollock, Mark Rothko, Willem de Kooning, Alexander Calder, Roy Lichtenstein and Cy Twombly. It tells the story of the birth of the NeoAvant-Garde movements after World War II in a tight and uninterrupted interplay between European and American artists. The exhibition also celebrates a longstanding tie, because it was precisely in the Palazzo Strozzi’s “Strozzina” undercroft that Peggy Guggenheim, recently arrived in Europe, decided in 1949 to show the collection that was later to find a permanent home in Venice


“Alexander Calder in Gstaad”, which coincides with “Calder & Fischli/Weiss” at the Fondation Beyeler in Basel / Hauser & Wirth / Fondation Beyeler / Basel and Gstaad, Switzerland This unique exhibition features six Calder works from the 1960s and 1970s, towards the end of his career, during which he experimented with huge forms and large-form kinetic sculpture. It marks the first time that this part of Calder’s oeuvre is exhibited in Switzerland. Alexander S. C. Rower, grandson of the artist and president of the Calder Foundation, said, “Installed against the mountainous backdrop of Gstaad, these works will surely surprise viewers as they harmonize in unpredictable ways with their surroundings.” This exhibition coincides with the close-by Fondation Beyeler’s “Calder & Fischli/Weiss” exhibition, where works of Calder and Fischli/Weiss, from the early and late-twentieth century, respectively, are in dialogue. Following the correspondence between


this initial, dialectic couple of works and featuring paintings, sculptures, drawings by Calder in an open and cross space dialogue with works by Fischli/ Weiss, the exhibition reveals significant historical passages in Calder’s oeuvre. The works of Fischli/Weiss perform as counterpoints in this narrative and unexpected path.

El Macro Mural Barrio de Palmitas / German Crew Pachuca, Mexico This installation, El Macro Mural Barrio de Palmitas, brightly colored over more than 200 homes and 65,000 square feet of space in the neighborhood of Palmitas, in the town of Pachuca, Mexico—an hour and a half drive from Mexico City. The design was led by Mibe, a Mexico City-based street artist, and the piece took two and a half months to complete. The Germen Crew attempts to “use culture as a tool for the transformation

of the social fabric and consolidation of a sense of identity,” said Mibe. The Germen Crew, a local youth group known for its street art and graffiti projects, created a rainbow-hued mural covering 209 homes. Over 450 families and nearly 2,000 people have seen their homes transformed into a colorful display, which is meant to bring the community together and discourage crime.

Painting with Light, Art and Photography : from the Pre-Raphaelites to the Modern Age / Tate Britain London, England This exhibition celebrates the visual links between early photography and British art, bringing together fascinating vintage photographs and stunning paintings including Pre-Raphaelite, aesthetic and impressionist works. It features works by the painters that inspired early photographers and the photographs that changed painting. Spanning 75 years across the Victorian and Edwardian ages, the exhibition showcases the experimental beginnings

of photography right through to its flowering as an independent international art form. These are displayed alongside the paintings which they inspired and which inspired them. This is the first time works by John Everett Millais, Dante Gabriel Rossetti, JAM Whistler, John Singer Sargent and others will be shown alongside photographs by pivotal early photographers such as Julia Margaret Cameron and Alvin Langdon Coburn.


Creative Africa / Philadelphia Museum of Art Philadelphia, USA This sweeping exhibition presents the visionary work of artists throughout Africa in multi-disciplinarian cultural forms – in five interrelated exhibitions from contemporary photography, fashion, and architecture to centuriesold sculpture. At the heart of the ensemble is Look Again: Contemporary Perspectives on African Art, a major exhibition drawn from the Penn Museum’s distinguished African collection. It includes pieces created in West and Central Africa

from the 1500s to the 1900s- carved ivories and bronze altar objects from the kingdom of Benin, Kongo power figures, Kuba textiles and vessels, Akan gold weights, Kota reliquary figures, and more. The exhibition also features four additional themed shows: Three Photographers/Six Cities; Vlisco: African Fashion on a Global Stage; The Architecture of Francis Kéré: Building for Community; Threads of Tradition.

Making & Unmaking: An exhibition curated by Duro Olowu / Camden Arts Centre / London, England Curated by Duro Olowu (b. 1965, Lagos), this exhibition is the latest in a series of artist-selected shows. Olowu is a celebrated fashion designer whose bold innovations with pattern, colour and shape reveal his early influences living between Nigeria and Europe, and his ongoing fascination with the world. His fluency with diverse aesthetics can be seen in the clothes he makes as well as the exhibitions he has curated, which combine antique textiles with his own fabric designs, bringing together discordant colours and patterns


alongside disparate cultural forms. This exhibition draws together over 70 artists from around the world spanning this century and the last, including 19th century textiles made by unknown hands. Individually, each work has a story to tell; collectively, they begin a conversation in which visual, narrative and thematic relationships unfold. This eclectic collage of works, some of which have strong political undercurrents, addresses issues surrounding cultural identity, sexuality and the representation of the body.

YOUNIVERSAL (shared) Jheronimus Bosch – Visions of a Genius Noordbrabants Museum / Noordbrabants, Netherlands Bosch. The 5th Centenary Exhibition Museo del Prado / Madrid, Spain In addition to the juried awards, an integral aspect of the GFAA program is to engage the general public. The opinion of people all around the world collectively recognizes the best exhibition of the year, by voting for this award.

YOU-2 Traversing the Globe through Illuminated Manuscripts The J. Paul Getty Museum / Los Angeles, USA To expand the digital presence of GFAA, a new award was added this year: YOU-2. The Top 10 Nominees, based on the Youniversal votes, became eligible for this Twitterbased award. Congratulations to these exceptional exhibitions, winners of the GFAA public awards.


Image Credits & Copyright and Intellectual Property Policy The Global Fine Art Awards program (“GFAA”) has adopted the following general policy toward copyright and intellectual property infringement in accordance with general U.S. intellectual property laws and the Digital Millennium Copyright Act. ¬¬GFAA will respond to notices of this form from jurisdictions other than the U.S. as well. The address of GFAA’s Designated Agent to Receive Notification of Claimed Infringement (“Designated Agent”) is listed at the end of this policy. Photo credits (T = top; B = bottom of page) 7 Rauschenberg in China / Ullens Center for Contemporary Art (UCCA) / Beijing, China 8 T Frank Auerbach / Tate Britain / London, England 8 B John Baldessari : the Staedel Paintings / Staedel Museum / Frankfurt, Germany 9 Maholy-Nagy: Future Present / Solomon R. Guggenheim / NYC, USA 10 T Danh Võ, We The People (Armpit), 2011-13, Photo: RBA Köln / Britta Schlier © Danh Võ 10 B Over the Earth, Germany, 2015, © Tony Cragg Studio, Fondazione Berengo 12 T Louise Bourgeois. Structures of Existence: The Cells / Guggenheim Museum, Haus der Kunst / Bilbao, Spain; Munich, Germany 12 B Nasreen Mohamedi: Waiting is a Part of Intense Living / Reina Sofía / Madrid, Spain. Exhibition view 13 T Debora Arango, Museo de Arte Moderno, Medellin, Columbia 14 T Wyeth, Denver Museum 14 B Illumination: new contemporary art at Louisiana / Louisiana Museum of Modern Art / Humlebaek, Denmark 15 ‘Phyllida Barlow. GIG’, Hauser & Wirth Somerset, 2014; Untitled (The Wedges) — Louise Bourgeois, 1950, Collection The Easton Foundation © The Easton Foundation / Licensed by VAGA, New York, NY Photo: Christopher Burke; Untitled [S.143, Hanging Five-Lobed, MultiLayered Continuous Form within a Form] — Ruth Asawa, 1996, © Estate of Ruth Asawa Estate of Ruth Asawa, courtesy Christie’s Photo: Laurence Cuneo © 2015, A Snake — Yayoi Kusama, 1974, Private Collection, USA © Yayoi Kusama Courtesy of Anthony Meier Fine Arts, San Francisco Photo: Michael Bodycomb, New York 16 Serpentine Galleries: Michael Craig-Martin and Simon Denny 17 Installation views of Human Interest: Portraits from the Whitney’s Collection (Whitney Museum of American Art, New York). Photograph by Ron Amstutz; Richard Avedon, Dovima with Elephants, Cirque d’Hiver, Paris, 1955. gift of Eileen and Peter Norton 2001 © 1955 The Richard Avedon Foundation 19 María Fernanda Cardoso, Woven Water: Submarine Landscape, 1994, dried starfish with metal wire, the Museum of Fine Arts, Houston, Museum purchase funded by the Caribbean Art Fund. © María Fernanda Cardoso; Magdalena Fernández, 2iPM009, from the series Pinturas móviles (Mobile Paintings), 2009, video installation with sound, the Museum of Fine Arts, Houston, Museum purchase funded by the Caribbean Art Fund and the Caroline Wiess Law Accessions Endowment Fund. © Magdalena Fernández 21 Degas, Edgar Degas, Racehorses in a Landscape, 1894, pastel on paper, Carmen ThyssenBornemisza Collection on deposit at Museo Thyssen-Bornemisza, Madrid, Beach at low tide Plage à marée basse 1869 pastel, Private collection; Dancer looking at the sole of her right foot (Second study) (Danseuse regardant la plante de son pied droit (Deuxième etude)) National Gallery of Victoria, Melbourne, Purchased with funds donated by Leigh Clifford AO and Sue Clifford and Family, 2016 ; Finishing the arabesque (Fin d’arabesque) 1877, Musée d’Orsay, Paris (RF 4040), © Musée d’Orsay, Dist. RMN-Grand Palais / Patrice Schmidt


22 T Delacroix and the Rise of Modern Art / National Gallery / London, England 22 B Dubuffet, PAYSAGE AUX ARGUS, 1955; BOCAL À VACHE, 1943 © FONDATION BEYELER 2013, SWITZERLAND 23 Joan Miro: Painting Walls, Painting Worlds / Schirn / Frankfurt, Germany 24 1 T ALBERTO GIACOMETTI, Walking Man I, 1960, Copyright and courtesy Estate Giacometti (Fondation Giacometti + ADAGP) Paris 25 Oriental Poppies 1927, The Collection of the Frederick R. Weisman Art Museum at the University of Minnesota, Minneapolis, Museum Purchase, 1937. Abstraction White Rose 1927, Georgia O’Keeffe Museum, Gift of The Burnett Foundation and The Georgia O’Keeffe Foundation 26 T Mondrian, Mill in Sunlight, Gemeentemuseum, Den Haag, Netherlands 27 Divine Beauty: from Van Gogh to Gauguin and Fontana / Palazzo Strozzi, The Vatican Museums / Florence, Italy 28 T Noir: The Romance of Black in 19th-Century French Drawings and Prints / The J. Paul Getty Museum / Los Angeles, USA 28 B Pablo Picasso, The Rescue, 1932. On loan from Fondation Beyeler, Basel, Switzerland. © 2015 Estate of Pablo Picasso / Artists Rights Society (ARS), New York; Pablo Picasso, Head of a Woman, Portrait of Marie Thérése Walter, 1934. Isabelle and Scott Black Collection. © 2015 Estate of Pablo Picasso / Artists Rights Society (ARS), New York. 29 Fundación MAPFRE Giovanni Segantini. Ritorno dal bosco [Return From the Wood]. 1890; Umberto Boccioni. Nudo di spalle (Controluce) [Nude From Behind (Backlight)]. 1909. 30 The Lost Symphony: Whistler and the Perfection of Art / Smithsonian’s Freer and Sackler Galleries / Washington DC, USA; complementary exhibition Peacock Room REMIX: Darren Waterston’s Filthy Lucre, 31 Jewel City: Art from San Francisco’s Panama-Pacific International Exposition / de Young / Fine Arts Museums of San Francisco; with mural by William de Leftwich Dodge, “Atlantic and Pacific,” originally installed in the archway of the Exposition’s Tower of Jewels. 33 The Tricentenniel of Giuseppe Castiglione’s Arrival in China / National Palace Museum / Taipei, Republic of China (Taiwan) 34 Bosch, Visions of a Genius, Marc Bolsius 35 El Bosco, del Prado and catalogue cover 36 T Van de Velde: Two studies of a reclining shepherd Rijksmuseum, The beach at Scheveningen de galerie Kassel; Rijksmuseum Collection 36 B Boticelli Reimagined: exhibition installation photo © Victoria and Albert Museum, London 37 Caravaggio, The Musicians (1596-1597). The Metropolitan Museum of Art, New York. The Fortune Teller (1595-1596). Musei Capitolini, Roma 38 T Jean Baptiste Lallemand (1716-1803) Classical Ruins. Gouache on paper mounted on cardboard. MMFA, Lady Davis Bequest 38 B Allan Ramsay, George III, RCIN 405307, Royal Collection Trust/© Her Majesty Queen Elizabeth II 2016 39 Traversing the Globe through Illuminated Manuscripts / The J. Paul Getty Museum / Los Angeles, USA; The World as a Clover Leaf with Jerusalem at the Center, 1597. German. Heinrich Bünting. The Getty Research Institute; An Emperor at Court, about 1460 – 1470. French. The J. Paul Getty Museum; Iskandar at the Kaaba, about 1485 – 1495. Unknown maker and Nizami Ganjavi. Iranian. Los Angeles County Museum of Art, The Nasli M. Heeramaneck Collection, gift of Joan Palevsky. Photo courtesy of LACMA 40 1 T Boris Godunov: From a Courtier to the Sovereign of all of Russia / The Moscow Kremlin / Moscow, Russia


41 Johannes Vermeer, A Lady Writing, about 1665. National Gallery of Art, Washington, Gift of Harry Waldron Havemeyer and Horace Havemeyer, Jr., in memory of their father, Horace Havemeyer, 1962.10.1 43 Pergamon and the Hellenistic Kingdoms of the Ancient World / The Met Fifth Avenue / NYC, USA; Portrait of a Roman General from Tivoli, 80–60 B.C., Museo Nazionale-Palazzo Massimo alle Terme, Rome; Statue of Athena Parthenos, ca. 170 B.C., Antikensammlung, Staatliche Museen zu Berlin; Black-glaze hydria with polychrome decoration, ca. 325–300 B.C., Archaeological Museum, Amphipolis 44 T Sunken cities: Egypt’s lost worlds / British Museum / London, England; Foundation plaque from the Serapeum in Alexandria, 221-204 BC, showing hieroglyphic text as nearly a literal transcription the Greek inscription. Greco-Roman Museum, Alexandria. Photo: Christoph Gerigk. © Franck Goddio/Hilti Foundation. 44 B Viking Ireland / National Museum of Ireland / Dublin, Ireland, Artefacts from Dublin excavations 45 Sicily: culture and conquest / British Museum / London, England, Terracotta altar, 550500 BC. Museo Archeologico Regionale Paolo Orsi, Siracusa. ©Regione Siciliana. Gilded bronze falcon, AD 1200-1220, The Metropolitan Museum of Art, The Cloisters Collection © The Metropolitan Museum of Art 47 Christo, The Floating Piers (Project for Lake Iseo, Italy), Drawing 2014 in two parts 15 x 96” and 42 x 96” (38 x 244 cm and 106.6 x 244 cm) Pencil, charcoal, pastel, wax crayon, enamel paint, topographic map, fabric sample and tape, cut-out photographs by Wolfgang Volz,Photo: André Grossmann, © 2014 Christo 48 T Tatsuo Miyajima: Time Waterfall / International Commerce Centre (ICC) building (projection) / Hong Kong, China 48 B Art Paris Fair - light exhibit façade / Grand Palais - Art Paris Fair / Paris, France 49 Olafur Eliasson / Palais de Versailles / Versailles, France 50 T Magda Szwajcowska and Michal Majewski : Micro-installations / Lower Silesian Festival of Architecture (DoFA) / Wroclaw, Poland, images courtesy of “no studio” 51 William Kentridge: Triumphs and Laments - A Project for Rome / River Tiber / Rome, Italy; photos courtesy of the artist 53 Manus x Machina: Fashion in an Age of Technology / The Met Fifth Avenue / NYC, USA: Karl Lagerfeld for House of Chanel, Wedding ensemble (back view),Courtesy of CHANEL Patrimoine Collection; Iris van Herpen, Dress, Courtesy of Iris van Herpen, Issey Miyake for Miyake Design Studio”Flying Saucer” dress, Courtesy of The Miyake Issey Foundation, Photos © Nicholas Alan Cope 54 T The Peak, Hong Hong, 1982-83, image © Zaha Hadid Architects 54 B View of the exhibit inside the Central Pavilion at the Giardini, Venice, image © rik nys 55 Atmosphere for Enjoyment: Harry Bertoia’s Environment for Sound / Museum of Arts and Design / NYC, USA; Bertoia barn, Pennsylvania, c. 2015, Photo by John Brien 56 T Sterling Ruby / The Belvedere Museum Winterpalace / Vienna, Austria 56 B José Manuel de la Cerda, Desk-on-stand (detail), Pátzcuaro, Mexico, 18th century. Lacquered and polychromed wood with gilt decoration. On loan from The Hispanic Society of America, New York, NY. 57 Installation view of the exhibition Roberto Burle Marx: Brazilian Modernist. The Jewish Museum, NY. Photos by David Heald 59 Diane Arbus: In the Beginning / The Met Breuer / NYC, USA; Diane Arbus (1923-1971). Taxicab driver at the wheel with two passengers, N.Y.C. 1956 © The Estate of Diane Arbus, LLC. All Rights Reserved 60 and 61 Installation views of Robert Mapplethorpe: The Perfect Medium exhibition at


LACMA and the J. Paul Getty Museum. Mapplethorpe artwork shown: Flower Arrangement, 1986, Lisa Lyon, 1981, Self-Portrait, 1985. All Mapplethorpe images © Robert Mapplethorpe Foundation. 63 Burnt Generation: Contemporary Iranian Photography / Candlestar / London, England; Azadeh Akhlaghi (b. 1978), from her series By an Eye Witness 64 Strange and Familiar: Britain as Revealed by International Photographers / The Barbican / London, England; Frank Habicht / Courtesy of the Artist. Peace message, Vanessa Redgrave, Grosvenor Square, London, 1968; Tina Barney, Courtesy of Paul Kasmin Gallery. The Ancestor, 2001 65 T Cindy Sherman: Imitation of Life / The Broad / Los Angeles, USA 65 B Public to Private / National Museum of Modern and Contemporary Art, Korea / Seoul, Korea 66 T Edward Steichen / Galerie Clairefontaine / Luxembourg, Luxembourg; Edward Steichen: Ripe Corn, 1934, Vintage Dye Transfer Print 66 B Evandro Teixeira: The Constitution of the World / Museo de Arte do Rio / Rio de Janeiro, Brazil; Evandro Teixeira, da série Movimento Estudantil, cavalaria na Candelária, Rio de Janeiro, 1968. Courtesy of MAR 67 T Paul Strand; Philadelphia Museum of Art, Paul Strand Retrospective Collection, Paul Strand Archive/Aperture Foundation 69 Susan Philipsz @ Tate Britain, photo courtesy of TATE 70 T at Chateau de Chambord, « Fleurs fantômes », installation de Gabriel Orozco, 2015 - © E. Sander 70 2 B Exhibition view, A LABOUR OF LOVE, Wolfgang Günzel 71 Palazzo Strozzi, exhibition cover photo; The Kiss (Le Baiser), Max Ernst, 1927; Upward (Empor) Vasily Kandinsky, 1929. Peggy Guggenheim Collection, Venice, Photos by David Heald © Max Ernst, by SIAE 2016.; Number 18, Jackson Pollock, 1950, Solomon R. Guggenheim Museum, Gift, Janet C. Hauck, in loving memory of Alicia Guggenheim and Fred Hauck, © Pollock-Krasner Foundation / Artists Rights Society, ARS, New York, by SIAE 2016 72 T Alexander Calder, 3 flèches blanches (1965). Photo ©2016 Calder Foundation, New York / DACS London Courtesy Calder Foundation, New York / Art Resource, New York and Hauser & Wirth; Installation view of the exhibition “Alexander Calder & Fischli/Weiss”, Fondation Beyeler, Riehen/Basel, 2016; © Peter Fischli David Weiss / 2016 Calder Foundation, New York / ProLitteris, Zurich. Photographs by Mark Niedermann 72 2 B Painting with Light, Art and Photography: from the Pre-Raphaelites to the Modern Age / Tate Britain / London, England; Dante Gabriel Rossetti, Prosepine 1874 © Tate 73 Germen Crew, Pachuca, Mexico. Photo: Germen Crew. 74 1 T Altar Head, 16th century; Benin Kingdom, Nigeria; University of Pennsylvania Museum of Archaeology and Anthropology, Philadelphia: Purchased from W. O. Oldman. Image courtesy of the Penn Museum, Photograph by Gary Ombler for Dorling Kindersley 74 2 B Installation view of Making & Unmaking: An exhibition curated by Duro Olowu at Camden Arts Centre, 2016. Photo: Mark Blower


We thank our corporate sponsors, media sponsors and partners for their generosity and dedication to our mission. Key Partnerships Frieze London and Frieze Masters; Vastari Group, Presenter of the GFAA Youniversal Award ; Kwittken, GFAA Public Relations Agency of Record; Pryor Cashman, GFAA Legal Counsel of Record ; Baccarat Hotel 2016 Corporate Sponsors Aon/Huntington T. Block Insurance Agency, Inc., ARIS Title Insurance, Goihman Group of Douglas Elliman, K&L Gates, Pryor Cashman, Kwittken Communications, Vastari Group, Wiggin and Dana Media Sponsors, Art Partners and Non-Profit Partners American Alliance of Museums, Fine Art Connoisseur, Family Office Elite Magazine, Miami Dade College, MDC Museum of Art + Design, Florida International University College of Architecture + The Arts, Miami Dade County Department of Cultural Affairs, Nob Hill Gazette, Fractured Atlas, Association of Art Museum Directors (AAMD), Vastari, Traveling Exhibition Network (TEN), World Red Eye 2016 In-Kind Donations & Sponsors Baccarat Hotel, Rosa and Carlos de la Cruz, Betsie and Benoit Piussan, General Counsel of Luxembourg New York SIP Rose, Hanson of Sonoma Organic Vodka, Quivira Vineyards, Billionaire Italian Couture, Carillon Miami Beach

Global Fine Art Awards 2016 GFAA is a sponsored project of Fractured Atlas, a non-profit arts service organization. Contributions for the charitable purpose of GFAA must be payable to “Fractured Atlas� only. Any contribution is tax-deductible to the extent permitted by law. Fractured Atlas, a 501(c)(3) public charity, provides a fiscal sponsorship program to help arts organizations raise money from charitable sources.






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