blue - Change

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Vontobel Private Banking The magazine for private clients Spring Edition 2010

Change

“If the life of a person, or any organism, reaches equilibrium with its environment, then it is dead. Life requires change.�

Professor Josef H. Reichholf

Our cover "Polaroid" is detachable and can be recycled with other PET materials.

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Editorial their ability to deal with change can take on new realities and actively shape the future.

The current issue of blue focuses on various facets of change. As “West goes East”, how is our world changing?

Why would evolution be a one-way street if it were not for continuous development? How does an artist document changes in the natural world, and how does a world-renowned architect design the future of a rustic village in the mountains of the Valais? As you read more about these topics in the following pages, you’ll see that the individual viewpoints could not be more different!

Dear readers, It is our pleasure to present you with the newest issue of blue, which is dedicated this time to the theme “change”.

What does change mean? Change means life, and “life,” in the words of Henry Miller, one of the greatest writers of the last century, “is what happens to us while we’ve been doing something completely different.” Day after day, changes present us with challenges – positive challenges and negative, challenges on a small scale or large one, in our private as well as professional lives. What a blessing it is, for example, to be able to watch our children grow up, even if the process reminds us all to clearly of the fleeting passage of time. Art is the ability to face change with courage and confidence. Only those who are versatile in

Changes that society and the economy are undergoing also affect the way the Vontobel Group works. Demographic developments, the most modern technologies, and changing environmental factors all mean that it is imperative to think ahead in order to implement value-creating investment strategies. Active portfolio management is more important than ever if you want to benefit from opportunities in terms of asset allocation. Our experts know this. And they are always available to support you with help and advice!

With best regards,

Peter Fanconi Head of Private Banking

Table of contents Theme: Change ∙ The virtue of natural imbalance ∙ Metaphors for change ∙ Interpreting signs ∙ The renaissance of Asia is more than just a fashion trend

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Macro: Active portfolio management is more important than ever

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Opportunities: A promising industry gets a new lease of life

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Column: Mastering change

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Who is who: Stronger together

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Share & Care: Supporting the move to self-reliance

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Culture and cuisine: Inside Zurich

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“The balance of nature must be maintained” – a phrase repeated with a fair degree of regularity by politicians, environmentalists and climate scientists. Josef H. Reichholf is not among them. The Munich-based evolutionary biologist sees things exactly the other way round: “Nature must be imbalanced.” It’s the only way to avoid a freezing into inertia, and allow change to be possible.

Interview by Johann Thalheimer

Theme: Researching change

The virtue of natural imbalance Martin Luther once said that if he knew that the world would end the next day, he would still plant an apple tree. Would you do the same, Professor Reichholf?

Martin Luther was a man who looked the world in the eye. I suspect that he made his optimistic statement because he was sure that the world in fact will not end.

As for me, it is not much different. I would plant my apple tree, too. In my view, doomsday scenarios were, are, and always will be kind of a boundless exaggeration. Reality demonstrates that in nature as well as in human societies, life is always victorious. When the old comes to an end, there arises even more of the new.

Would it be right to say that, as an evolutionary biologist, you don’t close your eyes to the things that go wrong in nature, and for exactly that reason you have not become a pessimist?

Yes, this is an appropriate characterization. As for the state of nature, I’m not naïve; to me, we are far from a status quo where all is milk and honey. But I am not one of those people who likes to see the bad even in the good.

In one of your books, you describe the development of the past thousand years of natural history. What surprised you the most on this long walk through time and evolution?

Perhaps it was how clear the basic lines and patterns appear, over all the decades, when they are grouped in an appropriate way. For example, the focus of political and economic power and technological development grew out of the Mediterranean area, gradually shifting to the north of Europe, and from there to North America. This shows how these areas became favorable and climatically productive zones, which was important for change and

development. And it shows that history is obviously neither chaotic nor strictly deterministic.

But now you are speaking as a historian rather than an evolutionary biologist?

I’ll come to evolutionary biology in a moment. What has fascinated me most is the high degree of alignment and the great similarity between historical development and the process of evolution. Everything new emerges from what already exists. And while no one can predict exactly enough what will happen in the future, it is quite possible in retrospect to fathom the causal factors at work and describe the major patterns of development.

Is it possible to say that a thousand years of natural history are a thousand years of change?

Yes, it is. But despite this perspective, there has existed time and again the naïve wish that as far as the present is concerned, change should not be allowed. But, to paraphrase Goethe, you cannot make an instant in time last forever. It may be a beautiful human desire, but in nature – like in human life – it is completely unrealistic.

Today the so-called balance of nature is a kind of dogma.

Many people strive to attain it, and those who want to give this tree a shake are considered enemies of the environment. For a long time, you have taken the opposite point of view, saying nature does not need balance, but rather imbalances.

If something is to change – and there is a lot in our society and our time that should change – then imbalances are indeed necessary. Only out of imbalances emerge new things. From the point of view of physics, change comes about because of differences in potential like in

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Professor Josef H. Reichholf (65) taught conservation and aquatic

in global conservation policy setting. On reaching retirement

ecology/evolutionary biology at both the universities in Munich. At

age, Josef H. Reichholf left his functions at the State Zoological

the State Zoological Collection in Munich, he also directed for many

Collection in younger hands, but as a writer of nonfiction he

years the Department of Vertebrates and the Ornithology Section. As a

remains in the public eye.

longtime board member of the WWF in Germany, he was also involved

electricity, or, from an environmental standpoint, from different stages of development. In this sense, the result of constancy would be that development would come to an end: the system, locked in a stable equilibrium, would “freeze”. The most stable equilibrium that we know of is represented by the diamond. From the point of view of energy, the diamond has found the optimal structure, but in doing so, it has become “frozen”. For a diamond, no more transformations are possible. The most you can do is burn one at very high temperatures.

So a diamond can be seen as a symbol of the opposite of change?

Absolutely. For development to be possible at all, there has to exist a tension in potential. Life itself, if we understand it as a process, always exists in a state far from equilibrium.

If the life of a person, or any organism, reaches equilibrium with its environment, then it is dead. Life requires change.

With your concept of the need for imbalance in nature, you have made not only friends…

For many so-called environmentalists – or real ones – my approach seems to turn their world view upside down.

Still, I gladly admit that there is a certain connection between the intention of reducing imbalances that are too large and the idea of equilibrium in the first place. But it is exactly here that we should be vigilant, lest we do too much good and, even with the best of intentions, create something bad instead.

years on end. Periodically recurring famines dragged on in Europe until the 18th and 19th centuries, leading to much privation for large parts of the population. With the 19th century and the advent of technology, a consolidation phase occurred, which could have created the best conditions for further development to have taken place in a peaceful manner. But it was not yet meant to be. The environmental conditions in Central and Eastern Europe were still too fragile at that time. Hunger and poverty were not defeated, which created a socially explosive environment in many countries. In Western Europe, hard years of famine sharply increased emigration to North America. In the last century, the two world wars marked temporary breaks in this development. Their impact on the environment was significant. We can say that our natural environment has returned to a relatively high level of stability only in the last sixty years. When I say “we”, I mean especially Europe. In other parts of the world, the situation looks very different. In natural history, there are always both types of regions at the same time: highly dynamic regions and less dynamic ones, too.

You are a person who doesn’t explain the present by looking at the present or the future by looking at the future. The long haul is important to you. Other scientists reach conclusions from rather short experimental periods.

Do you come to different results because you look back further into the past?

Yes, that’s right. The evolutionary perspective has the advantage of working with very long stretches of time.

By extending the time dimension, the span of events is also greater, and we suddenly discover realised possibilities and not just always theoretically conceivable, or no longer conceivable, changes, such as those that are copiously produced in the future projections being made in climate research. If we want to rely on facts, we must first find out what really happened in the past. The facts then show us that in the past 10,000 years there has never been climatic stability. Anyone who claims otherwise is claiming something unfounded.

“No change in nature, no matter how it develops, has only a positive or only a negative impact.”

Are there phases in natural history, in which the benefits of imbalance are clearly evident?

Yes, there are a few examples from ancient and medieval times as well as the modern era. At the time of the Roman Empire, there was relative stability. At the end of the Imperium Romanum, however, a breakdown came about, initially by the advance of the Germanic tribes and other peoples. These migrations led to what we call the “Völkerwanderung” in German – the barbarian invasions.

They lasted about five hundred years. In the Middle Ages, from the year 800 to about 1300 AD, there were relatively minor changes. The most striking thing about this period was probably the high rate of population growth throughout Europe. Conditions were generally favorable at that time, so it is not surprising that this phase was also a time of great discoveries. The Vikings not only reached Greenland but also North America where they probably settled for a short time. Another branch of the Vikings headed to the southeast, where they settled the kingdom of Kiev, which still causes problems for the Russians up to the present day.

The modern era had its turbulent phases as well.

Yes, we only have to think of the Thirty Years War, to the many cold winters and poor harvests that lasted for several

And yet in climate policy discussions, an ideal equilibrium is conjured up out of the past – one that we should try to retain.

All of natural history shows us that this equilibrium has never existed. It is fiction. In many ways, all the historical sources point to the opposite, and reveal a long series of natural changes. I don’t think it would have been necessary to use ice core samples to document longer-term climate change – a glance at the very well-documented natural history would have sufficed. Changes in the natural world, and especially in plant life, have taken place for thousands of years. No climate scientist can make the claim that it has never been as warm as it is presently. Fossils prove that 120,000 years ago, Europe was much warmer than it is today. Hippopotamuses lived on the river banks of the Rhine and the Thames back then – and I do not think that these animals then covered themselves with fur coats. The hippos were here because at that time, it was much warmer in Europe than it is today. From this I conclude that the earth obviously does not respond as the climate scientists, with all their models and projections, claim it does.

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Climatic and environmental disasters seem to occur much more in cold periods than warm periods. Why is that?

This is true for Europe to a very special degree, as the historical records of the last thousand years show beyond reasonable doubt. The extensive flooding and storm surges which have shaped northern Germany all happened in climatic cooling phases and not in warm periods. The warm decades and centuries were generally rather poor in natural disasters. The interaction of cold and warm periods correlates exactly with the growth and shrinkage of glaciers in the Alps. There is an independent climate archive that shows exactly how the Alpine glaciers made a massive push forward around the year 1350. It was during this period that Europe and China too experienced the largest floods in the historical record. In the 16th and 17th centuries, similar phenomena occurred again.

Which floods were larger – those in the distant past or the ones from the last ten years?

The floods from 350 and 650 years ago were much more powerful in magnitude than the ones resulting from today's storms. High-water levels clearly show this. It is all the more surprising because at that time the rivers were not straightened, channelised and narrowed, so that much larger floodplains were free to be inundated.

Ice Age. These pools were formed by glaciers and were dammed up by moraines. Even what is man-made is not always unnatural.

When you look at our environment today, what conclusions do you draw?

Basically we have to accept that there will be gains on the one hand, and losses on the other. No change in nature, no matter how it develops, has only a positive or only a negative impact. It is always a mix of both. But – to return to the starting point of our conversation – this still does not make me a pessimist, because I see many improvements: The air is better, bodies of water are cleaner, many polluting industries have been closed down, we have removed the lead from petrol, traffic has become more humane, we live our lives in greater awareness of the scarcity of natural resources, we recycle our waste and manage resources better. Yes, we live in a better world than we did fifty years ago. This makes me confident.

Copyright: National History Museum, London

Remaining on the subject of water: New dam projects often attract opposition these days. However, you are of the opinion that a reservoir can be as valuable a habitat as a natural lake.

This is a good example to show how relative our judgments are: Many of our natural lake landscapes are nothing more than dammed lakes left over from the

This reconstruction from London’s Natural History Museum shows how southern England looked 120,000 years ago. With a much warmer climate than today, a watering hole like this was frequented by hippopotamuses, elephants and hyenas.

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Text: Katharina Klein

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Theme: Documenting change

Metaphors for change Glaciers are among nature’s most awe-inspiring phenomena. Their immense size alone is impressive, their beauty unique, their form and structure fascinating.

Glaciers are constantly changing. They shape their environment, leaving their mark not only on a landscape but sometimes also on works of art. Glaciers figure prominently in the work of the artist and photographer Christian Andrea Samaras.

Glaciers have represented a motif in the works of Samaras for more than 25 years. To work with these mighty giants of ice, he decided on a philosophical approach, namely to grapple with the concept of “time” and its meaning. To understand time as a construct, the ancient Aristotelian analysis requires that there be motion. Only by recognising that something has moved does one recognise as well the passage of time. Glaciers illustrate this in symbolic ways.

One of their primordial elements is continuous movement.

In his photographic images of glaciers, Samaras documents this change, revealing an artist’s fascination with the inconsistency of their appearance.

Glacial landscapes and their appearance are in constant flux. Apart from natural spectacles such as the calving of huge blocks of ice from the leading edge of the Perito Moreno glacier in the South American Andes, their rate of change is very slow, not immediately apparent to the observer but recognisable only in retrospect. In the work of Christian Andrea Samaras, glaciers are metaphors for time and difference. “A photograph is the documentation of a moment, while the interplay of glacier and landscape is an allegory of the proverbial passing of time. At the moment you capture the image, the subject needs to be unique, the glacier representing the transience of existence.”

The special feature of Samaras’ work is not just the impressive shots of the Cambrena and Roseg glacier in the canton of Grisons, or the climatically sensitive landscapes of Patagonia. What is exceptional is primarily his use of historical plate cameras, which he has worked with since 1982. Their use requires long and careful preparation, and only yields a few negatives. “The mechanical and optical complexity of the old cameras forces you to follow a particular sequence and thus to work in a very disciplined manner. Spontaneous photo shoots are not very productive with such a vehicle and remain irrelevant,” Samaras remarks in justifying his unique method of working.

“Not the search for a subject, but rather, the vision and the patience of a sketch artist who is aware of the volatility of light and texture – these are the preconditions for the decision to use photography as a medium.”

Christian Andrea Samaras As a traveler between art and literature, Christian Andrea Samaras, born in 1963, exhibits his images in Switzerland, the United States, Germany and France, ranking among the most important representatives of contemporary photography and aesthetic theory. Samaras’ works can be viewed by visiting his studio in Zurich, Wühre 3 on the banks of the Limmat, and on request, in selected corporate and private collections

What is interesting is his expression of a sociological context for his project. “While contemporary societies have lost their natural-philosophical dimension,” he says, “the landscape remains something of aesthetic and ecological value. Its preservation constitutes a challenge.

Is this not one of the imperatives for coming to grips with the concept and the importance of nature itself?”

November 2004: the Cerro Torre and its glacier in the Argentine-Chilean border area, photographed

by Christian Andrea Samaras. For the photographer, the sensitive landscapes of the “Hielo Continental” are metaphors for time and change.

The discovery of such a “value” takes time. Before Samaras ever presses the shutter release on the large lenses of his camera, several years can easily go by; cycles allow the artist to get closer to his “subject”, a step at a time. The position of the sun, the quality of shadows in different seasons, light and weather conditions as the day progresses, and local topographical considerations must all be studied in detail.

“It is difficult to accept that a landscape that has evolved over millions of years can be ‘captured’ seriously in a short time. Perhaps this is a question of reverence and recognition, reflected in the many difficult ascents on the way to the subject. Often it is necessary to retreat and come back at the same time the following year, staying in a kind of permanent dialogue with the landscape and its lighting conditions.”

On the day that the approach is successful, Samaras removes the plate negative from its special wooden box and, depending on his intentions, makes one or at most two photographic images. More than this the equipment simply does not allow – and is not necessary for the artist.

“At the crucial point of the photographic dialogue, many things have to come together just right to create the motif.”

Ahead of their time Samaras' glacier images, realized thanks to his visionary capability to think ahead, pre-date the polemic of the global climate debate. But especially in the context of

climate change, his images have an aesthetic as well as discursive value. For Samaras, the uniqueness of the moment is critical: “A second shooting of a glacial landscape that is exactly the same as an earlier one is out of the question.”

“The decision to capture a scene means that within the negative, there is also contained the element ‘time’, and that is irrevocable. The negative retains an aesthetic moment – the linkage of image and time – which will no longer exist in any form except this one.”

Even if Samaras’ work doesn’t document the great changes of the glacial formations of the past few decades according to rigorous scientific standards, the worldwide decline in ice cover does not leave him unaffected. “If, one day, a glacier in some familiar valley is no longer there, we recognize this as a loss, a farewell. It is this lack, this disappearance of a ritualised sensory experience (‘we used to go see the ice when we were children…’) that will hit the solitary viewer emotionally, and make clear to him what we have taken for granted too long in our perception of nature – and the pleasure we get from it – namely, its finiteness.”

In this sense, Samaras’ heedful project can be seen as a way of preserving a phenomenal and stunning landscape – one whose beauty is grounded precisely in its transience.

Theme

Text: Heike Isselhorst

Theme: Shaping change

Interpreting signs Everything in the world is subject to change. The Greek philosopher Heraclitus summed this up around 2,500 years ago in the famous phrase: “panta rhei” – everything flows. The needs and wishes of people also change constantly. This represents a key challenge to Italian architect and designer Matteo Thun. For more than 25 years he has been working on making life better for people through his designs.

Large parts of our environment are not natural; they are man-made. What we live in, what clothes we wear, how we get around – all these reflect our life circumstances and how we see our life. Creative people work with this change and create new trends. “The work of an architect or designer reflects the things that concern people. Design and society are closely related,” explains Matteo Thun.

“In the final analysis a product or a building should satisfy the needs of its users. If the users’ lifestyle changes, new solutions are required.”

Shaping the future Anyone who wants to be creative must have his finger on the pulse of the age. He needs to be sensitive to people and social trends. For Matteo Thun this is one of the most important aspects of his work. “Society and design have an influence on each other. As an architect I perceive a given change, interpret it and look for new solutions.

At the same time, however, I am also influencing my environment and shaping the future through my designs.”

Matteo Thun is always trying to find the true core of things. For him this so-called “No Design” approach represents the quintessence of an object. “‘No Design’ is the iconic form, where everything superfluous has benefit stripped away and both the form and the function are as pure as possible.”

Implementing change sustainably One current global trend in architecture and design is the return to reduction and sustainability. This is a factor that has been further strengthened by the realignment of the global economy during the last two years. Matteo Thun has been following this maxim in his work for a long time now. “Sustainable building implies aesthetic, economic and technological durability. It means avoiding architectural wounds and finding out the right configuration of the construction volume by using the right materials in the right location. It also means grasping the spirit of each place and creating a synthesis of what is already there, what has been planned, and the terrain.” He is convinced that, even

decades later, people will still enjoy looking at a building that has been planned and constructed on this basis.

New interpretations Matteo Thun and his atelier are currently working on the plans for “Goms Village”, an ambitious project that is intended to revitalise the upper Valais region through a brand new hotel concept. The central element of this concept is the re-use of the traditional “Gaden” buildings that are found throughout the village. In the past these small, one-roomed structures were generally used for storage. Matteo Thun explains: “The original idea for the project was to reactivate these storehouses and revitalise the village by following the idea: ‘A village becomes a hotel.’ The ‘Gaden’ are scattered through the whole village and have been a typical feature of the landscape in the Goms region for over 100 years.” Just as with other

Goms Village in the upper Valais, as envisaged by the Italian architect Matteo Thun. Old barns are re-purposed to become part of a decentralised hotel concept.

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design projects, it is important for Thun that the historical buildings retain their original core. “We will be changing the ‘Gaden’, transforming the heights of the storeys and modifying them to comply with the Minergie building standard. But the exterior, the proportions, the facades will remain unchanged. This is crucial if we are enable people to continue to experience the atmosphere of these iconic buildings.“ Village life reinvented “Goms Village” attempts to combine the attractions of rustic village life with the blessings of a luxury hotel.

Thun’s vision for the project is clear: “We want to preserve the traditional atmosphere of typical Swiss ‘Gaden’ and enable people to experience this atmosphere for themselves, while also offering guests a high level of comfort. That's the charm of ‘Goms Village’. Each hotel guest will live in his suite, with a sleeping gallery, an open fire and steam shower, enjoy all the comforts of life and yet be part of the village.” For local people the completion of this massive project will mean a new perspective. The hotel will create new jobs and help prevent people – especially young people – from leaving the region. The village character will be reactivated and the region will become a more attractive place to live.

Many aspects of the “Goms Village” project are visionary.

The use of local materials and a respectful attitude to nature will ensure that the basic atmosphere of the old mountain village will be preserved despite the radical change. And how does one have such brilliant ideas in the first place? In Matteo Thun’s case the answer is breakfast.

That’s usually when he has his best ideas!

Matteo Thun (58) is an Italian architect and designer who has won the prized “Compasso d’Oro” three times for outstanding design. He has received numerous other awards for his work on various hotel projects, among them the Vigilius Mountain Resort in Merano, the Klima Hotel in Bolzano and the Vertical Village in Zermatt. More information at www.matteothun.com.

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Text: Urs Schoettli, Tokyo

Theme: Experiencing change

The renaissance of Asia is more than just a fashion trend Every journalist and politician who considers himself cosmopolitan is busy announcing the dawn of the Asian century. China, and in recent years India too, are held up as new global players, and some commentators even go as far as to prophesy that Beijing is on course to become a superpower on a level with the USA. Some have even spoken of the Chinese yuan as a new global currency.

This entire battery of opinions on the Asian renaissance is based on a mixture of misunderstanding, ignorance, much wishful thinking and a great deal of subliminal fear.

the 19th century Asian despotism and oriental decadence became the dominant images of the old empires in the minds of the white elite. Essentially, the current vigorous return of India and China to the global economic and political stage merely represents a restoration of the balance of power that existed before Asia declined in the face of external pressures and internal debility. The main challenge for politicians in the West, both in Europe and in the USA, is to ensure that the process by which the West enriched itself at Asia’s expense during the 19th and 20th centuries is not now repeated in the other direction.

While some coin catchy new terms – like “Chindia”, “BRIC” and “G-2” – to express the ongoing global rebalancing of power in the simplifying style of big-headline journalism, others remain quietly convinced that the rise of Asia is just a temporary blip and that the whole affair will soon be consigned to history. That's why it is important to keep two facts firmly in mind. The economic and geopolitical renaissance of Asia, especially India and China, represents a turning point in modern history, the scope of which far exceeds the disappearance of communism from Eastern

Europe is a small continent in which people and powers have been treading on each others’ toes since time immemorial. The smallness of the space has also helped define European attitudes to other continents. When we speak of Asia, it is easy to forget that this is a continent of enormous size and unique diversity. In fact, it is simply incorrect to think of it in terms of a single continental structure or fabric. The Indian Union and the People’s Republic of China are actually separate continents, not only because they each have a population of more than one billion, but also because of their geographical and ethnic dimensions.

Asia – unlike the two Americas, Europe and Australia – has no religious identity that defines the continent as a whole. In addition to pockets of Christianity – in the Philippines for example – Asia is home to millions of people who follow Hinduism, Buddhism and Islam.

“In reality, it is Europe that has been inferior to Asia in terms of cultural and technological achievements for hun­ dreds, if not thousands of years.”

Europe and the collapse of the Soviet Union. The second point is that the last two decades have produced tectonic shifts in global architecture that cannot be reversed.

It is vital to remember that the new heft of India and China, primarily in economic terms, is in fact nothing new. In the 18th century – before the Mogul dynasty on the Indian subcontinent and the Qing dynasty, the last dynasty to rule the Middle Kingdom, entered a phase of terminal decline – the global economy was dominated by these two mighty empires. The Europeans, especially the British Empire, took advantage of their weakness, and in

It is vital to keep this diversity in mind if we are to understand the fundamental differences between the various Asian civilisations. What is true for India may well not be true for China. And Japan is quite different again. This applies not merely to obvious differences like language, ethnicity and religion. It also extends to the mentality of the people and the way they interact in each culture. In China one of the major priorities is keeping face. This applies not just to individuals but also to the entire Chinese nation, which has had to endure so many humiliations during the last two centuries. In Japan, on the other hand, the world is dealing with a country that has been profoundly influenced by its insularity, its coherence and its recent history. Many

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Japanese do not regard Japan as a part of Asia at all but instead see Asia as the continent with vast empires and teeming multitudes of people. In contrast, India has social structures – like the caste system – that could scarcely be more alien to the European mind. In some ways, however, its linguistic and institutional heritage from the period of the British Raj makes it more European than any other major Asian power.

The Asian renaissance reveals a massive handicap for Europeans – Eurocentricity. Although Europe’s – and also Switzerland’s – prosperity is merely a phenomenon of the last 150 years, Europeans think that they have always had the upper hand over Asia. In reality, it is Europe that has been inferior to Asia in terms of cultural and technological achievements for hundreds, if not thousands, of years.

This may not seem important from the point of view of current global economic events, but in reality it reveals the Europeans’ major weakness – Eurocentricity. Chinese and Indian graduates are well aware of the Renaissance, the Enlightenment and the French Revolution. They are familiar with outstanding figures like Shakespeare, Napoleon and Michelangelo. But what do Europeans, what do the Swiss, know about China except perhaps that a certain Mao Zedong was in charge there at one time? Which of the great Mogul emperors of India can Europeans put a name and date to? How many Europeans know what the Meiji Restoration in Japan was about?

Of course, Asia today – especially as embodied in China and India – is perceived above all from an economic and occasionally a geopolitical point of view, as either a looming threat or a source of hope for the future. If

Europe intends to succeed in the new world order, all this is of secondary importance. The most urgent and important task for Europeans today is to regain a properly cosmopolitan vision of the world, a vision that the great pioneers in the fields of discovery and colonisation, trade and transformation, brought to bear on the wide world.

The most important realisations in this context are that the dawn of the Asian century is not just one of many turning points and that the Asian renaissance is definitely not a fashion trend that will be consigned to history in a few years’ time.

Urs Schoettli has a profound understanding of Asia, having been based in the region since 1996 as one of the Neue Zürcher Zeitung’s correspondents. From 2002–2007 he was stationed in Beijing as the newspaper’s China correspondent, and since then has been in Tokyo.

He is currently writing a book on the subject of Asian Concepts of Wealth and Assets.

A worker cleans the steps for the opening ceremony of the Chinese highspeed train from Wuhan to Guangzhou in December 2009. Reaching 350 kph, it is the fastest train in the world, underscoring China’s leading role

Photo: Reuters

in rail technology.

Photo: Gettyimages

Rio-Antirrio Bridge, Patras, Greece

Macro

Text: Christophe Grünig, Head of Wealth Management of the Vontobel Group

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Macro

Active portfolio management is more important than ever In the coming years, shifts of an almost tectonic significance will occur in such areas as debt development, monetary and fiscal policy, power shifts between the West and East, as well as demographically. For these reasons, static investment concepts do not make sense for either private or institutional investors; indeed, they would practically be negligent. Both types of investors cannot help but review their strategic asset allocation periodically. Also in the field of tactical investment policy, increased opportunities to actively manage one’s portfolio will present themselves – as the example of Vontobel Fiscal Risk Index shows. Given the enormous challenges to be tackled in the coming years, investors can no longer assume that the financial markets will automatically generate high returns. Against this background, the supposedly “safe” bond markets also need to be re-evaluated. This raises the question of whether a passive investor is well advised with investments in bonds, considering that more and more countries are being forced to issue bonds because of eroding national budgets.

The prognosis of the Vontobel Group for the investment year 2010 – we are speaking of a transition year – has come true so far: While a strong recovery got underway in 2009, the growth momentum palpably slowed down in the current year. No end is in sight. On the contrary: Also for the coming few years we are expecting moderate growth rates.

Asset allocation is becoming increasingly challenging Happily, the equity markets are showing a slight upward trend. However, in comparison to last year, we cannot speak of a broad recovery. A somewhat different picture emerges in the bond markets, which remain stable for the time being. The commodity markets remain historically high. Housing prices have stabilised in Europe and the USA. Also, the US Dollar has recovered slightly from its weakness last year, although this is less due to its own strength than to the weakness of the Euro and the Yen. The structural problems in Greece are having a particular impact on the Euro, which is approaching historic lows.

Nevertheless, on a selective basis, some quite interesting investments will be available in the investment year 2010.

However, for investors with a passive investment strategy, it should be increasingly difficult to identify and exploit the opportunities that present themselves.

Expectations largely surpassed – selected shares remain top priority Although equity markets have already recovered to a satisfying degree, we remain optimistic. In principle, they are valued fairly by historical standards. In addition, risk premiums have stagnated at a high level. These circumstances favour investment in equities over bonds.

Most of the companies that announced their 2009 earnings during the past few weeks were able to exceed analysts’ expectations. Linked to this, attractive dividends are being paid out as well. Obviously, the cost-cutting measures initiated have had an impact in many parts of the economy. In addition, this development reflects the regained growth momentum from the second half of 2009. In particular, globally operating companies are benefiting from the continuing high growth rates in emerging markets. Numerous companies can point to healthy, robust balance sheets and sustainable growth strategies – in stark contrast to many countries.

Vontobel Fiscal Risk Index (FRI) The Vontobel Fiscal Risk Index (FRI) judges countries not only based on their indebtedness or budget deficit, as is customary, but assesses a total of seven indicators that are relevant in order to gain a comprehensive picture of the fiscal risk of a country. Subsequently, this assessment is compared with the risk that has been priced in by the market, as measured by credit default swaps (CDS). This makes it possible to determine if government bonds have priced in too much risk in relation to fiscal risk; such bonds are attractive for investors.

Conversely, some country risks are underestimated by the market; these bonds should be avoided.

Finally, there are risks that the market has more or less correctly assessed.

Learn more about this in the current Vontobel study “From the financial crisis to the debt crisis: Impact on the economy and financial markets”. To order a copy, please use the reply card at the end of the magazine.

Indebted countries, healthy businesses To combat the crisis, many Western countries had to go deep into debt. But be aware that not all of Europe’s supposed problem countries (also called the PIGS countries, for Portugal, Ireland, Greece and Spain) actually deserve their poor image. It is true that Greece is currently at the top of the menacing (debt) iceberg. But do not forget the fact that total debt in the US and other major economies such as Japan has long been at historically very high levels and is sure to increase even more in the coming years. A laudable exception is Switzerland, which was able to reduce its public debt in the past few years, despite the financial and economic crisis. Switzerland therefore is not only the home of several world-class companies, but also has a relatively healthy national budget, which allows it some interesting room for manoeuvre in the future.

National budget clean-up is based on reducing levels of private debt Despite the alarming extent of government indebtedness, debt reduction is entirely feasible over the coming decades. As recent economic history has shown – for example Sweden from 1996 until 2008 – countries can restore their balance sheets, if private households reduce their debt and begin consuming again. In addition, the banks have to be able to lend, which entails the rehabilitation of the financial system. In addition, an important precondition is that the countries concerned design a clear strategy for reducing their debt and credibly communicate it to both their citizens and market participants. The rehabilitation of public finances, however, necessarily involves the reduction of private household debt. It is highly probable that this should lead in turn to a period of moderate growth in the western hemisphere.

Above-average growth in the BRIC countries foreseeable Basically, even without expectations of high inflation, a slight increase in long-term interest rates is to be expected. Increased investment in government bonds is therefore not advised. Corporate bonds will be somewhat more attractive because of the aforementioned healthy balance sheets of many companies. However, any capital gains to be expected will be on the modest side. Quite different, however, is the situation in the so-called BRIC countries (Brazil, Russia, India and China). Far-reaching transformations are being made in these countries, which investors should not leave unconsidered. These markets will not be entirely able to decouple themselves from the predictably weak economic development of the US and Europe. But it is expected that domestic demand in these countries will continue to climb significantly, making a greater contribution to the gross national product. This automatically reduces dependence on exports. Even sceptical market observers expect that growth in these countries will be above average, especially since the per capita share of GNP is still very low and pent-up demand within the general population is high. Even with only moderate global growth, the demand for raw materials to fuel the industrialization of the emerging economies, and the (over)use of natural resources will also remain an important focal point. As a consequence, there is no getting past the development of renewable energy sources as part of the sustainable growth strategies of these fastgrowing countries.

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Are active funds too expensive?

The statement, “Active funds are too expensive and therefore should be avoided” is misleading, although it is often given as the reason for rejecting actively managed funds. Of course, over-priced instruments which have no proven track record are not recommended. But why shouldn’t a fund manager who is better than his competitors be justified in asking for more? This makes it simple for the investor to decide whether the costs of the fund vehicle are too high or justifiable, since all costs within the fund will be transparently charged against performance, thus allowing a “net comparison.”

Cash is not king During the crisis, many investors sold securities at a loss and increased their cash holdings. Although we do not presume a rise in inflation, high cash holdings – even for conservative investors – are not a targeted investment strategy, thanks to the sustained low level of interest rates.

For investors with a high proportion of liquid assets who missed the strong recovery in 2009, the gradual reduction of high cash holdings is recommended – even if the risk of short-term setbacks can not be excluded. In the future, there is no way round equities. As the last ten years have shown, with equities one must count at any time on temporary large losses. But in this crisis as well, the worst scenario was for investors to liquidate their equity holdings at just the worst moment, i.e. in the first quarter of 2009.

Consequently, it is not recommended to set the equity exposure too high. In a balanced portfolio, the Vontobel Group considers a current equity proportion of about 45 percent to be appropriate.

Think global, invest local The equity markets – still reasonably valued – plus the attractive growth in the emerging markets, and contrary

Public finances worsen in the crisis Indebtedness as a % of GDP Source: OECD

USA

92.4

Euroland

88.3

Germany

82.0

England

83.1

Spain

67.5

Sweden

55.2

Switzerland

45.0 2000

2010

to public opinion, the extremely favorable position in Switzerland, all underline the continuing high degree of attractiveness of selected Swiss equities. Companies such as Holcim, ABB and Schindler are well positioned to benefit from the establishment and development of the infrastructure in emerging markets. On the other hand, companies such as Swatch or Logitech stand to profit from the rising power of consumers in these markets, despite the current strength of the Swiss franc. These and other similarly positioned companies in the Euro zone offer a real alternative to direct investments in the BRIC countries.

No getting round the energy issue Investments in renewable resources belong in a wellstructured portfolio. Since not even experts can conclusively predict which new technologies will ultimately prevail, it is recommended to pursue a diversified, fund-based approach. The thematic Global Trend funds of the Vontobel Group, and the fund “Global Trend Responsibility”, focused on sustainable investments in Asia, open up broad access for investors to this promising investment area. The issue of renewable resources has also to do with the fact that energy shortfalls can be solved not only by alternative energy sources; the efficient use and allocation of energy produced by conventional means is just as important. The manufacture of intelligent electricity networks, so-called smart grids – i.e. the complete renovation of the existing network infrastructure, whilst also incorporating modern communications and IT technologies –, is an important component of the energy-specific solutions.

The decade of passive investing is coming to an end In the case of passive products, the investor usually invests in capitalization-weighted indexes. This means that at any particular time, he is invested most in the firms and sectors that are, relatively speaking, the most expensive.

At the time of the “dot-com” bubble in March 2000, this was the IT/telecoms sector, or during the oil price highs in June 2008, it was the energy/materials sector. Passive investing thus leads to an undesirable herd effect. In addition, only very few passive investors actually know in which securities they are invested, or what is contained

in the underlying index. Some interesting investment opportunities, and companies whose major growth phases are yet to come, thus tend to be left on the table. The aforementioned growth in emerging markets, as well as the expected climate change, both create investment opportunities in the energy, resources and environmental sectors. However, since the relevant companies are frequently small cap firms, a passive investor, as a rule,

Only the best generate high returns The performance rankings of various active managers, as well as studies conducted by independent experts such as EDHEC, show that selected asset managers are able to consistently generate high returns. One example is the performance of the Vontobel Fund – Global Trend New Power.

Over the last five years, it achieved a yield of 7.3 percent p.a. while the MSCI World rose by only 1.1 percent. Three conditions are essential in order to create added value through active management: credible governance, the selection of appropriate sources of return, and an investment culture in which talent can thrive.

is heavily underinvested in these sectors. Only through a careful, active share selection process is it possible to successfully identify opportunities early and to generate high returns in the portfolio.

Christophe Grünig For the head of Wealth Management of the Vontobel Group, there is no getting past equities in the future.

Opportunities

“In the 20th century mankind benefited from the supposedly inexhaustible supply and increasing production of raw materials. Now we have to solve the problems created by signs of a shortage of those raw materials in the 21st century.”

Text: Sreejith Banerji, Portfolio Manager Global Trend Future Resources

Opportunities: Biofuels

A promising industry gets a new lease of life Not too long ago, fuels derived from renewable sources were regarded as an environmentally friendly and innovative alternative to mineral oil. There was just one problem: most first-generation biofuels were produced from foodstuffs – for example, cereals.

In view of rising food prices across the world this development has turned out to be a dead end. But now a Danish biotechnology company seems to have found the solution – a new technology that facilitates the production of biofuels from plant waste – and at a competitive price.

The biofuel industry, which had originally looked so promising, has had to take some stick in its short history.

For example, the competitiveness of biofuels is hampered by the high cost of complex and expensive research and development work. It had scarcely arrived on the market when it ran into global political resistance because first-generation biofuels were made from so-called energy crops that had originally been planted as food crops. More and more land was being used to produce bioenergy, and less and less to produce food and animal fodder. The price of food rose sharply as it became scarcer. According to the World Bank index, the price of food rose by an average of 140 percent between 2002 and 2008. Despite an increase in supply over this period, coupled with good harvests and significant productivity improvement, strong demand, especially from the biofuel sector, resulted in inventories remaining at relatively low levels. Encouragement for the production of biomass and biofuels in the USA, Brazil and many EU countries triggered a worldwide boom in demand for grain and oilseeds, which further accentuated the rise in food prices.

Suddenly the biofuel boom was in direct competition with the world’s food supply. The following figures make this development clear:

• In 2007/2008, 23 percent of US grain production, 14 percent of world grain production, plus 54 percent of Brazilian sugarcane and 47 percent of EU vegetable oil production, were being used to produce biofuels; • Production of biodiesel rose by 1,200 percent between 2004 and 2007 in the USA; • More than 80 million tons of maize was used for bioethanol production in the USA in 2007. That is equivalent to around 11 percent of world production.

The price of maize in the USA rose by more than 54 percent between 2006 and 2007.

White biotechnology solves the dilemma White biotechnology or industrial biotechnology refers to production processes that primarily use natural, biological resources. It includes fermentative and enzymatic processes which provide alternatives to classic chemical synthesis and promise much in both economic and ecological terms.

White biotechnology either exploits the potential of renewable commodities for industrial manufacturing and production, thereby reduces dependence on traditional resources, or it uses these resources more efficiently. This makes it a key technology of the 21st century. Novozymes, a Danish biotech company, recognised the potential of white biotechnology at a very early stage and specialises in the research and development of enzymes which, among other uses, are essential for the production of biofuels.

Enzymes and microorganisms: little helpers with a big impact If the ethanol fuel industry is to meet the challenges such as high prices due to huge research and development costs, and to avoid the controversy of using food crops for fuel hence drives up food prices, Novozymes may now have a solution – its Cellic CTec2 technology. The cellulosic ethanol comes from materials such as corncobs and stalks, wheat straw, sugarcane bagasse, and woodchips – all

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Photo: Keystone

What are biofuels?

Biofuels are fuels that are produced from renewable raw materials or biomass. Two of the most important are biodiesel and bioethanol. Biodiesel is produced from oil obtained from plant sources (e.g. oilseed rape, sunflower, soya and oil palm). Bioethanol is produced by fermenting sugar derived from maize, sugar beet or sugar cane. Second-generation biofuels are produced using natural waste, wood or straw.

Innovative key technologies “White” is not the only kind of biotechnology.

“Red” biotechnology concerns itself with the production of medically valuable macromolecules, e.g. therapeutic proteins and vaccines. The aim of “green” biotechnology is to develop new plant varieties for food production and industrial manufacturing, while “blue” biotechnology is concerned with protecting aquatic life and its use in production processes.

As a by-product in the ethanol manufacturing process, mountains of maize kernels pile up here in a production facility in Iowa, USA. To produce bioethanol, the USA used more than 80 million tonnes

Photo: Novozymes

of maize in 2007 – about 11 percent of the total world production.

Novozymes Danish company Novozymes is a global leader in the field of bio-innovation. Its more than 700 products are used in 130 countries to boost industrial performance and reduce the impact of industry on global resources by providing a range of superior and sustainable solutions. Novozymes’ natural solutions achieve improvements and progress in many areas, from stain removal to biofuels. Surfactants (tensides) for detergents, for example, are traditionally produced from mineral oil using a complex petrochemical process. Novozymes uses enzymes (minute biological catalysts) to produce these tensides for use as stain removers in detergents. This means that the company contributes to a reduction in the demand for mineral oil derivatives. Research into the virtually endless potential of the environment is reflected in more than 5,000 patents, demonstrating the opportunities inherent in combining nature and technology.

Photo: Novozymes

www.novozymes.com

Specially developed enzymes serve as catalysts in the processing of wheat, barley and rye into bioethanol, increasing the efficiency of the process by 20 percent.

non-food raw materials. Enzymes break down cellulose in the biomass into sugars that are then fermented into ethanol. Novozymes says that its Cellic CTec2 enzymes will enable cellulosic biofuel to be a competitive alternative to gasoline.

Novozymes describes Cellic as the first commercially viable enzymes for production of biofuel from agricultural waste. It also says that the enzymes can produce ethanol

advances in enzymes have reduced the cost of enzymes needed for cellulosic ethanol by 80% over the past two years to 50 cent per gallon.

Opportunities/Column blue 20/21

Plant waste as an energy source As second-generation biofuels do not require the cultivation of special energy crops, unlike the predecessor, their production processes have no negative impact on the production of food or animal fodder.

For this reason the International Energy Agency (IEA) considers the second-generation biofuels more climate-friendly and less problematic in their impact on food production than the current range of biofuel. Recent studies also indicate that – using currently available technology – ten percent of the global waste from agriculture and forestry would be sufficient to produce 125 billion litres of diesel or 170 billion litres of ethanol per year. The foreseeable rise in crude oil prices also gives additional impetus to the production of biofuels. Various pilot plants

“However, the production of traditional fuels like oil, gas and coal is lagging behind global demand.” at a price below USD 2 per gallon. Full-scale production would start in 2011 when Poet, the big US-based biofuel producer, is scheduled to open the world’s first commercial cellulosic ethanol facility. According to Novozymes,

They are of increasing significance: Companies that seek to overcome the rising scarcity of resources by developing new ideas, efficient processes and innovative technologies. With the Vontobel Fund – Global Trend Future Resources, you can take advantage of this development and invest in

the future.

Vontobel Fund – Global Trend Future Resources Valor B 4513032 (EUR) Performance

54,99 % (27.2.2009 – 26.2.2010) Important disclaimer: The present publication does not constitute an offer to purchase or subscribe to investment fund units. Investors can subscribe to units of sub-funds of the Luxembourg-domiciled Vontobel Fund SICAV based only on the prospectus, simplifi ed prospectus and by-laws, as well as the annual and semi-annual report (in Italy together with the Documento Integrativo and Modulo di Sottoscrizione). In addition, we recommend that you contact your Client Advisor, or other qualifi ed advisor, before making any investment, The aforementioned documents, as well as information concerning the composition of benchmarks, may be obtained from Vontobel Fonds Services AG, Gotthardstrasse 44, CH-8022 Zurich, as Representative in Switzerland; from Bank Vontobel AG, Gotthardstrasse 43, CH-8022 Zürich, as Paying Agent in Switzerland; from Bank Vontobel Österreich AG, Rathausplatz 4, A-5024 Salzburg as Paying Agent in Austria; from B. Metzler seel. Sohn & Co. KGaA, Grosse Gallusstrasse 18, D-60311 Frankfurt/Main as Paying Agent in Germany; from our authorised sales offi ces; from the domicile of the fund at 69, route d›Esch, L-1470 Luxembourg; or at www.vontobel.com. Historical performance is not an indicator of current or future ­performance. Performance data are not considered in the calculation of commissions and costs upon purchase or redemption of investment fund units. The return on the fund may rise or fall as a consequence of currency fluctuations.

and demonstration systems are already in operation around the world, while large-scale commercial production facilities are being built and are planned to come on line in 2011. It is expected that the commercialisation of biofuels from cellulose will create 1.2 million new green jobs in the USA alone by 2022. The latest support package from the Obama government will reignite investment in new bio-refineries all over the USA. Investment volumes are expected to more than triple by 2022. A 790-million-dollar incentive program has been created in order to make this a reality.

Dr. phil. Manuel Bachmann is a Lecturer and the Head of Studies of the Executive Master’s Programme “Philosophy and Management” at the University of Lucerne, as well as an Instructor at the University of St. Gall.

He publishes a monthly e-magazine for decisionmakers called “absolutum”.

Understanding global change as an opportunity Rapidly increasing population growth, combined with rising incomes, will accelerate the consumption of natural resources and fossil fuels. However, the production of traditional fuels like oil, gas and coal is lagging behind global demand. The imminent long-term imbalance between supply and demand will create a dynamic growth market for far-sighted businesses. At the same time, increasing urbanisation and industrialisation will

“The foreseeable rise in crude oil prices also gives additional impetus to the production of biofuels.”

place higher demands on the efficiency of processes while raising awareness of environmental issues. The result will be openings for businesses that profit from supply bottlenecks or exploit new chances to use sustainable innovations and technological progress. The Global Trend Future Resources theme fund focuses on both renewable resources and other natural depleting resources. It invests, for example, in companies that develop and produce substitutes for materials derived from limited resources.

Danish company Novozymes is just one representative of an entire investment universe. The fund also includes companies which provide technologies and solutions to produce existing raw materials more economically as well as more efficiently.

Column: Dr. phil. Manuel Bachmann

Mastering Change Nothing is as it was. Nothing will remain as it is.

Nobody knows what's coming. Change as the only constant has become an idea that reflects how we see ourselves. Its ideal is the flexible individual. Can we live up to this expectation? A world in which there are no constants contradicts our need for familiarity and makes us anxious. Flexibility alone is therefore not the answer. The great philosophers counsel serenity. It is an inner constant.

The phrase “stoic calm”, the deep calm that one should preserve at all times, has become proverbial. Epicurus compares it to the stillness of the sea when not even the lightest breeze disturbs the water. Aristotle teaches that one cannot apply one's knowledge until one has achieved inner peace. According to Seneca and Plutarch no misfortune or problem can afflict those who affirm life by remaining imperturbable. Serenity was regarded as the highest level of spiritual development by the Christian mystics of the Middle Ages. We find similar concepts in Taoism, Buddhism and yoga. And according to existentialist philosopher Martin Heidegger only serenity enables us to see what lies behind the turmoil of things.

The famous author Ernst Jünger experienced an astonishing serenity in the trenches of World War I. He said that it was like falling out of time. There is no before or after. Things happen outside time.

For those who experience only the exigencies of change this timelessness is hard to grasp. One looks at events as if they were a painting. Jünger speaks of “melting down” events from this perspective, in other words, of observing them as if through an unfocused lens until they flow into one another and a meaningful coherence emerges. One only achieves flexibility by accepting the inevitable. Thereafter everything can change all the time and yet one remains unaffected.

Who is who

Text: Jacqueline B. Etter

Who is who: Team Munich

Stronger together Delivering on promises. Down to earth and authentic.

The Munich Team advises clients on matters of financial planning, from real estate issues to credit intermediation.

Responding flexibly and rapidly to the individual needs of clients is how they define first-class service. Soundness and independence coupled with Bavarian charm – a mix that is very well received.

Led by Alois Ebner in Munich, the advisor team has been active since 2002, developing sustainable solutions for their clients. And doing so with great care, because only those who put themselves in their clients’ shoes, really understanding their individual needs, can elaborate an asset management strategy that is truly optimal.

Continuity and stability As their client care does not end with “banking as usual”, clients have rewarded the group’s prudence with their loyalty, often extending over several generations. As Alois Ebner points out, “Continuity is an essential element in our ability to understand our clients. We started up with a staff of eleven. Today we are 25 colleagues, based in two locations. Other than two colleagues who have since retired, all the other members of our team are still here.” In Switzerland, Bank Vontobel enjoys an excellent reputation as a solid, independent private bank. In Germany, intensive work is going into making the Vontobel brand widely known as well, anchored locally. Confirming the success of this pioneering work in Germany was the establishment of Bank Vontobel Europe AG in early 2009, with a solid capital base and German banking licence.

Clients will now benefit from the team’s multidisciplinary expertise in private banking, investment banking and asset management activities. The Munich Team advises clients on matters of financial planning, from real estate issues to credit intermediation. Services that are not available in-house are provided by selected external partners. This flexibility has proven to be a competitive advantage: growing regulatory requirements can be more quickly and individually implemented than in a large universal bank.

Dedicated advisers An old saying in the financial industry posits that “there is no such thing as a bad or a good bank, only bad or good advisers.” In Munich, a substantial investment is being made in educating and training the team. First-class expertise is required of each member. In addition, inhouse know-how exists in a number of key areas. “Equally important is the feeling for people. A good adviser likes

people and is open to new ideas,” says Ebner. Client satisfaction is the yardstick by which one measures how well the team has lived up to their requirements. Clients already have well-grounded financial know-how and expect added value in the form of accurate and understandable information. In discussions with their advisers, they want to hear in detail what is the best type of investment for them. And demand is growing. For example, since January 2010 the fiscal authorities have required an extensive consultation protocol. The Munich Team addressed this issue early. As a German client, why would you choose a Swiss bank? “Because we deliver what we promise. We are down to earth and authentic. First-class advice, soundness and independence, coupled with compelling performance – our clients find this a winning combination.”

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New head of Vontobel in Germany On 1st April 2010, Frank Wieser (47) became Speaker of the Management Board of Bank Vontobel Europe AG, headquartered in Munich, and the new Head of Private Banking Germany. He has extensive experience in private banking and asset management in Germany, and thanks to his profound knowledge of the market will boost the continued expansion of the Vontobel Group in Germany.

Frank Wieser, what aspects of your new position do you find particularly appealing?

The German banking market is experiencing a major upheaval – many traditional banks are for sale or have recently found new owners. Many clients are confused and looking for a new, reliable banking relationship. This situation creates great opportunities for the Vontobel Group, which my team and I intend to take advantage of.

How do you view the current discussions concerning Swiss banking secrecy?

I’m very ambivalent in my observations, because what you have here is the collision of two different legal systems. Ultimately, Germany and Switzerland are linked by their close and neighbourly relations. For example, the newly elected German Foreign Minister Guido Westerwelle chose Switzerland for his first ever state visit in November 2009. I believe that speaks for itself.

Where will you put the emphasis in your work? What can the clients of Bank Vontobel Europe AG expect from you?

We will focus more on private clients with an entrepreneurial background, because I am convinced that with our integrated business model, we create real value. We want to be a reliable and solid partner to our clients, one that brings a healthy understanding of risk and sustained earnings to the table.

Is your work based on a particular management principle?

My focus is on people. I maintain a culture of open dialogue, and from my colleagues I expect an elevated drive to perform. This includes the willingness to go the extra mile.

Standing, from left: Andrea Göbel, Alexandra Riedl, Irmingard Jaschke, Tanya Özcerkes, Gertrud Voggeneder, Patrick Siegert, Werner Rau, Roland Eller, Bernhard Rathgeber, Gisela Huybrecht, Alois K. Ebner, Antje Starke, Christine Wondra, Werner Schmid, Manuela Comouth, Barbara Assböck.

Sitting, from left: Helga Beck, Marel Weideneder, Michael Wittmann. Not pictured: Rupert Bader, Berthold Bartsch, Andreas Lippold

Share & Care

Text: Renato Richterich

Share & Care: Aid for Indian children

Supporting self-reliance What prompted you to get involved with an aid project in India?

My wife and I have the great good fortune to have three healthy children and to live in Switzerland – an island of prosperity and peace. We are very grateful for this. Not all people, and especially not all children, are so lucky.

That’s why I work with the ASRA Foundation, which helps disabled and disadvantaged children in the slums of Delhi to get an education and gives them the chance to build up an independent existence.

What’s special about this project?

On the one hand, there’s the extraordinary commitment of Vandana Mishra, who is the driving force behind the project. On the other, it’s the fact that 99 cents out of every franc donated in Switzerland actually go towards the project. As a private and entirely charitable organisation we finance the project via the ASRA Foundation in Switzerland, which relies entirely on the work of volunteers.

To what extent is the ASRA Foundation involved in the work of the project?

Our job has two main aspects. We provide funds through personal contributions and donations in Switzerland, and we support the management of the project’s 60 staff and the development of its activities in Delhi. Members of the board of trustees travel regularly to India at their own expense to experience for themselves what the project is doing. We also draft the quarterly activity and financial reports. In addition, we meet monthly to discuss the organisation of our fund-raising activities and to coordinate the various tasks. As you can see, it’s a real hands-on project.

What have you learned from your work with the project?

What we do is of course just a drop in the ocean, but it is our help under our control. We see and experience directly how our commitment benefits people and has a positive impact on their lives. When I see the catastrophic results of state-sponsored development aid over past decades I am absolutely convinced that help from one private individual to another is much more efficient and really does get to the people it’s intended for. That’s why I now only support private projects and specifically those that are backed by someone that I regard as credible.

Have you had any experiences with this project that have made a big impact on you?

It’s always the children that impress me. For example, a boy who has been left disabled by polio, but who laughs and plays and is bursting with the joy of life even though he lives in circumstances that are heartbreaking. Or a girl that is absolutely determined to learn to read and count even though she comes from an illiterate background and has to overcome enormous obstacles to satisfy her thirst for knowledge.

Dr. Andreas Hünerwadel is a partner at law firm Wenger&Vieli AG in Zurich and a member of the board of trustees of the ASRA Foundation. He is married and has three children.

What are your hopes for the project?

We want to expand our activities and include new slum communities in our program. We also intend to intensify our services (medical and therapeutic treatment, basic education and remedial and job-related teaching) in the slum communities. And we have high hopes of an Indian government project that plans to provide slum-dwellers with a broad range of job training courses. We were invited to support the government in implementing this program in the slum communities where ASRA works.

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ASRA Foundation Switzerland is a ZEWO-certified foundation headquartered in Canton Zurich. For more than ten years it has financed the ASRA Trust in Delhi, a private aid project in India. ASRA stands for “Action for Self Reliance and Alternatives� and aims to help disabled and disadvantaged children in the slums of New Delhi to help themselves. In 2009 ASRA was active in 27 slum communities, provided primary education for 600 children and remedial education for 1,200 children on its

own premises, carried out 1,600 medical and therapeutic interventions and enabled 300 young women to complete a training course in tailoring. ASRA operates its own rehabilitation and training centre in the slums. Here it provides tailoring and computer courses for young adults and operates its own workshops, where walking aids are manufactured and modified.

Contact: a.huenerwadel@wengervieli.ch www.asra.ch or www.asra.org.in

Photo: Ami Vitale, Panos Pictures

ASRA Foundation

ASRA enables disadvantaged children in India to attend school regularly, so that they are in a better position to build selfreliant lives as they grow up.

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Culture and cuisine: April – July 2010

Inside Zürich Stars György Kurtág Tonhalle, Sunday, 20th June 2010, 11:15 a.m.

Tickets: Tel. +41 (0)44 206 34 34, www.tonhalle.ch Awarding of the Zurich Festival Prize to György Kurtág.

The award ceremony will be followed by a recital by György and Márta Kurtág on the piano. György Kurtág is being celebrated as a man, a performer, a teacher, but above all as a composer whose oeuvre stands out from the contemporary music scene like no other.

Rod Stewart Hallenstadion, Tuesday, 22th June 2010, 8:00 p.m.

Tickets: Tel. +41 (0)44 316 77 88, www.hallenstadion.ch Rod Stewart brings good old soul to Switzerland. With more than 250 million albums sold, Stewart is among the most successful artists in the history of rock ’n’ roll. His raspy voice and insolent good looks have always helped ensure that he plays in the Champions League of the rock business. He comes to Zurich with a brand new album and other big hits.

Restaurant St. Meinrad Stauffacherstrasse 163, 8004 Zurich, Tel. +41 (0)43 534 82 77, www.sanktmeinrad.ch This small, charming restaurant combines tradition with modern Gemütlichkeit. With their 16 Gault Millau points, hostess Sabrina Sterle and chef Tobias Buholzer are inspiring not only to purists.

Exhibitions Paradise Switzerland Museum für Gestaltung (Museum of Design): through 25th July 2010 open Tue–Sun 10–5, Wed 10–8 www.museum-gestaltung.ch With the exhibition “Paradise Switzerland”, the Museum of Design puts various facets of Swissness under the microscope. Posters for tourist destinations and consumer goods from the last hundred years show how the Confederation has presented itself to the outside world, dealing with stereotypes and changing the national “corporate identity” over and over again.

Events

Restaurants

NZZ Podium NZZ Foyer, Falkenstrasse 11, 8008 Zurich Thursday, 27th May 2010 Tickets: Two weeks before the event.

Tel. +41 (0)44 258 17 80, www.nzzpodium.ch The meaning of life and pursuit of happiness – what is left when all of our wishes have materialized? With Prof.

Dr. Michael Hampe, Professor of Philosophy at the ETH Zurich. Partners: Bank Vontobel, Swiss Re. Moderated by Dr. Martin Meyer.

Restaurant Segantini Ankerstrasse 120, 8004 Zurich, Tel. +41 (0)44 241 07 00, www.segantini.ch The new “Segantini” takes the place of the former “Seidenspinner” or “silk-spinner”, but though the name has changed, restaurateurs Simona and Gianni Segantini continue to create dishes of silken elegance. In the kitchen, freshness and authenticity reign, with a focus on local produce. Restaurant and garden are perfect settings to enjoy a culinary experience.

Zurich Festival Friday, 18th June, to Sunday, 11th July 2010 The Zurich Festival enchants us again this year with a unique combination of opera, concert, dance, theater and art, whether it be the Zurich Opera House’s festival premiere, dedicated to Mozart’s “Cosi fan tutte”, or Peter Stein’s production of “Der zerbrochene Krug” in the Schauspielhaus, or in the comprehensive retrospective at the Kunsthaus Zurich of the works of Katharina Fritsch. www.zuercher-festspiele.ch

Locations

Masterhead

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

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

Bank Vontobel AG Schweizerhofquai 3a, P.O. Box 2265, CH-6002 Lucerne Telephone +41 (0)41 249 31 11, Telefax +41 (0)41 249 31 50 Banque Vontobel SA Place de l’Université 6, CH-1205 Geneva Telephone +41 (0)22 809 90 90, Telefax +41 (0)22 809 90 91 Bank Vontobel Europe AG, Hamburg Sudanhaus, Grosse Bäckerstrasse 13, D-20095 Hamburg Telephone +49 (0)40 638 587 0, Telefax +49 (0)40 638 587 230 Bank Vontobel Europe AG Alter Hof 5, D-80331 Munich Telephone +49 (0)89 411 890 0, Telefax +49 (0)89 411 890 30 Bank Vontobel Österreich AG Kärntner Strasse 51, A-1010 Vienna Telephone +43 (0)1 513 76 40, Telefax +43 (0)1 513 76 402 Bank Vontobel Österreich AG Rathausplatz 4, A-5024 Salzburg Telephone +43 (0)662 8104 0, Telefax +43 (0)662 8104 7

Contact blue@vontobel.com www.vontobel.com/blue Printing Climate-neutral printing by Schellenberg Druck AG. Published four times per year in German and English. Reproduction, in part or in whole, is strictly prohibited without written permission from Bank Vontobel AG. Photographers and Illustration Maurice Haas (Christian Andrea Samaras), Frank Bauer (Matteo Thun), Sandro Diener (Christophe Grünig and Team Munich), Albrecht Fuchs (Frank Wieser), Fridolin Walcher (Andreas Hünerwadel).

Illustration on page 21 by Jürgen Willbarth. Cover: cherry blossoms on Polaroid by Getty Images English version James Wade, Hurst & Freelancers

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