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LimitsUeli Steck:In the mountains there areclear limits

James Nachtwey:Reality, up close

Macro:Monetary policy and exchange rates: What is the fair value of a currency?

Vontobel Private Banking Das Magazin für PrivatkundenAusgabe Frühling 2010

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Safety and Security:Fear is not a policy for a safe life Page 4

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“Setbacks are part of life. If everything always works, then you are not pushing the limits.”

Ueli Steck, professional mountaineer

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Editorial

Dear readers,

Monetary policy, exchange rates and government debt. These themes have accompanied us during the last few weeks and months. The bitter realisation is taking root that the crisis is far from over yet, and a prudent investment policy and advice are essential. Especially in these times, it is important to seek and promote an active dialogue bet-ween our clients and investment advisors, to ensure that market developments are anticipated.

Not coincidentally, from the middle of the year, our advisory clients will receive better and more timely access to the focused information world of the Vontobel Group. With Ad-visory@Vontobel, Vontobel Private Bank is successfully taking on a leading role in the investment advisory and portfolio monitoring for our clients. In an interview on page 28, Chris-

tophe Grünig explains the advantages for you as a client. In the Macro section of blue, beginning on page 20, you will learn from our chief strategist, Dr. Thomas Steinemann, why the Swiss franc is only slightly overvalued at present. ”We are all edge dwellers.“ The short but subtle column by Manuel Bachmann comes right to the point once again. Sometimes it takes just a few lines of text to broaden our horizons. Another person living on the edge – literally – is the Swiss professional alpinist Ueli Steck. In April of this year, far from the eyes of any audience or the lens of any camera, he succeeded in one of mountaineering’s greatest achievements. In the Himalayan ”Arena of Solitude,“ he conquered the infamous 2‚200-metre high southwest face of Shisha Pangma (8‚027 m) in a little over ten hours – solo – then made a solo ascent of Cho Oyu (8‚201 m) just a few days later. Recently returned from Nepal, the 34-year-old top athlete sat with us to tell blue readers about his experiences. A fascinating encounter.

I wish you an interesting read about a number of uncon-ventional characters.

With best regards,

Peter FanconiHead of Private [email protected]

Theme: Limits ∙ In the mountains there are clear limits 4∙ Reality, up close 8∙ At home in the world of yesterday 12∙ Watching life while living it 16

Macro: Monetary policy and exchange rates 20

Opportunities: Focusing on performance –but sustainably 24

Blue extra: No one-size-fits-all strategy 26

Blue Pages: News from the Vontobel Group 30

Care & Share: An island of serenity 32

Column: At the limit 33

Culture and cuisine: Inside Zurich 34

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Why did you become a mountaineer? You come from a hockey dynasty; wasn’t a team sport a more obvious choice for you?Ueli Steck: Mountaineering is the polar opposite of a team sport. You win and lose together in the team. In the moun-tains, however, everything is very simple. There are clear lines and boundaries. If you make a mistake, you have to bear the consequences yourself. If you don’t make it to the summit, it’s your own fault, one hundred percent. In the end, the only thing that counts is your own performance.

In that sense, are you a lone wolf then?That may be, but I can also work well with a team. I’m very focused and I do like to take decisions. But going back and forth and spending lots of time weighing all the options is not my cup of tea. When it comes to mountain climbing and life, I’m always very consistent.

Is this attitude particularly necessary in the mountains?It’s indispensable. In the mountains, there are very clear limits. You know exactly where you are. There are no ifs and buts. If your feet are cold, then your feet are cold, and you have to take an appropriate decision and act. In this respect, the business world seems different to me; few people take responsibility for their actions. To be sure, they want to have their say-so in many things, but then they don’t want to bear the consequences. If I’m on the moun-tain and I make a bad decision, things go wrong. So in the mountains, I focus on the essentials. I do what I need to do, and don’t let anything distract me.

That all sounds very rational. Is climbing then not a sen-sual experience for you?No, on the mountain I’m totally focused on what I’m doing. There’s no room for anything else. I move like a river. That’s important – and it’s nice, too. For example, on my last expedition in the Himalayas, the ten hours for

The professional mountain climber Ueli Steck scales walls 2,000 metres high – alone, unsecured, and in record time. And yet he has never had the feeling that he has gone too far. Compromises are unknown to him.

”In the mountains there are clear limits.“

Interview by Peter Fanconi and Gregor Ingold

Theme: The limits of physical performance

the ascent on the summit of Shisha Pangma were brilliant. Everything worked exactly as I had imagined.

Is there really no place for emotions?Yes, of course there is – and it was a perfect feeling. You are in total control. It’s exhausting, but you’re not suffer-ing. You’re always moving forward, one handhold after another. Doubts never come up.

When you climb, you’re unsecured. Do you ever feel danger breathing down your neck?No, not when I’m climbing. For every climb, I prepare very thoroughly. Over time, your movements become intui-tive, even if you’ve never felt that particular handhold in your fingers. You just know that it will work. The tension is much worse when I’m alone, waiting in a bivouac. That’s when my thoughts start to race.

When climbing, are the decisions you need to make always entirely clear? Does ambition sometimes get in the way?Decisions are part of the mental preparation for a climb. I think about how I will decide in different situations. It’s im-portant that even in an extreme situation, you can still see the limits. On Mount Everest, for example, I turned back one hour from the summit because my feet were cold. I was prepared for the moment and knew where my limits were. I didn’t want to risk losing my toes from frostbite. Ten years ago I probably would have gone on.

You made the safe decision, but it was difficult nonetheless.Yes, it definitely was. I wanted to reach the top of Mount Everest without supplementary oxygen. At an altitude of 8,000 metres, the blood circulates only very slowly with-out supplementary oxygen, and you become susceptible to frostbite very quickly. In case of an emergency, I had a syringe with blood thinners in my kit. If I’d used it, I would

Ueli Steck climbing ice towers on the Khumbu Glacier, not far from the Everest base camp at an altitude of 5,200 metres.

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have made it to the summit. But I didn’t want to, because it wouldn’t have been honest.

You are an advocate of “pure” mountain climbing. Does that mean that you consider the use of oxygen the same thing as doping?Yes, I do, absolutely. If you reach the top of an 8,000-me-tre peak using oxygen, as far as I’m concerned you didn’t make it. I’m very consistent in the way I feel about that.

Recently, a colleague of yours broke your speed record on the North Face of the Eiger. Will you take the record back?No, I’ve moved on and now I’ve made the leap into the Himalayas. What I’d like to do is take the technique that I used for speed ascents in the Alps and implement it at high altitude, over 8,000 metres. That’s unique – unchart-ed territory.

Can performances on the mountain be compared at all?Not really, because the conditions are never the same. And in the case of speed ascents, you are moving at the absolute limit. Solo speed ascents are very dangerous. One misstep can be fatal. I’m aware that things could once go wrong. The question is how far you want to push the competition.

You’ve brought a new dimension to mountain climbing, namely high-performance sport. Do they fit together at all?Absolutely – it’s precisely this approach that excites me. It’s how I have been able to stand out in the eyes of the pub-lic. I’m testing new limits here. In terms of performance, we’re just at the beginning of the trend.

You also go in new directions when it comes to training.That’s right. Mountaineering is a high-performance sport, and at the same time it’s also something completely differ-ent. We still know very little about what form the training should ideally take. I’m working on this together with a trained team; I take various performance tests and evalu-ate every workout.

What are some of the difficulties?At more than 8,000 metres, the impact of altitude on your body is very special. Your pulse cannot be raised above 150 beats per minute. So it’s not a matter of speed. Pure marathon training doesn’t bring much benefit, either. You have to train for a combination of endurance and strength, at a lower impact level. For example, on Shisha Pangma, the climb lasted 20 hours. This can best be simulated with many long mountain runs – for example by running three times a week, with each run encompassing a total change of 5,500 metres in altitude.

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Ueli Steck in Nepal, training at 5,554 metres above sea level, with

a backdrop consisting of (from left to right) Mount Everest, the

barely visible Lhotse, and the distinctive western summit of Nuptse.

How does the impact of 8,000 metres’ altitude manifest itself?At that altitude, recovery is not possible any more. Your body is only deteriorating. I still suffer from this for months after an expedition. A climb like this amounts to predatory degradation of the body. We’re just now gaining experience with respect to the time required for the body to regenerate.

What makes you faster and more successful than others? What is the critical factor?Certainly, one essential is that I know what I want and follow the path consistently. For example, the move to the eight-thousanders brought me a step forward, personally as well as in terms of being a climber.

Do your feelings of elation at the summit compensate you for all the long, arduous training you undertake?

The summit is just a brief moment. On the Shisha Pang-ma, I was only on the top for about four minutes. Your thoughts are immediately revolving around the descent again. You still have a long way ahead of you. But even if I don’t reach the summit, the year and a half of preparation time needs to have some value.

Does a sense of satisfaction set in later?It takes me a while until I realise what I’ve accomplished. In the case of Shisha Pangma, it took a week. Reaching the summit itself isn’t much different than when you’re in training. You know exactly what you want to do and act accordingly.

Does fear ever come into play?No, I’ve never been afraid while mountain climbing. I train for a long time for a project. So when the time comes, I just function.

You have already experienced some critical situations and survived. Does this change anything in your attitude?Absolutely. I’m aware that lots of things can go wrong. On Annapurna in the Himalayas, I was hit by a rock, for example, and another time I survived a fall of over 300 metres. That’s when I think about what I can do better.

That sounds very analytical.Yes, I am very analytical. I try to derive some positive benefit out of these experiences.

Even when you see people die?Those are experiences that you will never shake off. They’re always in the back of your mind. I have witnessed a climber dying in agony because of pulmonary oedema. That was the most horrible experience of my life. I do not want to die like that. I’ve analysed what went wrong in that case.

Has living at the limit made you more aware?At least such experiences directly demonstrate to me that life is finite. The ridge is narrow. It runs like the proverbial red thread throughout my career. I follow my path consis-tently. The results speak for themselves. But setbacks are part of this, too. If everything always works, then you are not pushing the limits.

Just where are these limits for you as a mountaineer?I know not to cross the line, so in that sense, I’m not someone who is constantly living at the edge. But I do try to push my personal boundaries further, without actually reaching the limit. I’m also cognizant of the fact that one day, my performance will begin to decline. When it’s no longer the right thing to do, I’ll finish my career in one fell swoop.

Books:His spectacular ascents, accomplished as a solo climber and in record time, are the subject of his two books, “Speed” and “Solo.” They can be purchased through his website: www.uelisteck.ch

Ueli Steck (34) from Langnau (canton Berne), Switzerland, is considered one of the world’s best mountaineers and climbers. He has made a name for himself thanks to his solo ascents of several peaks. In the years 2007 and 2008, he introduced new speed records for the ascent of the three great north faces of the Alps: the Eiger, the Matterhorn and the Grandes Jorasses. He has set his new sights on the 14 summits in the Himalayas over 8,000 metres in height. During a three-month expedition in 2011, he succeeded in a sensational solo ascent of the south wall of Shisha Pangma (8,027 m) and the ascent of the west face of Cho Oyu (8,201 m).

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Click, click, click! The sound of the shutter of James Nachtwey’s camera penetrates the silence, over and over. He approaches very close to capture the image of several women in the Kosovo war, mourning at the graves of their murdered husbands and sons. This scene from the documentary “War Photographer” on the work of James Nachtwey is unsettling for the film’s viewers, leaving them feeling helpless or even emotionally distressed. At first glance it appears as if the American war photographer is overstepping every boundary of decency.

James Nachtwey is aware of the seeming transgression. “This family invited me to document their loss,” he ex-plains. “It was war. Under normal circumstances, it would be unthinkable to enter the house of a grieving family you don’t know.” Without the explicit cooperation of the people affected, the images James Nachtwey creates would not be possible. “People understand that my photos give them a voice. They believe that their grief will speak and that images make it possible for them to appeal to the outside world.”

Photos that take a standTo create mass awareness of injustices and unacceptable conditions, so that visual information can become an es-sential factor in the process of change is the stated goal of James Nachtwey. The great opportunity photography presents, as he sees it, is to arouse a feeling for human-ity. He came to that conclusion more than forty years ago during the time of the student movements and the Vietnam War. “The photos published in magazines back then showed the full horror of war and stood in stark contrast to what we were being told by the leadership of the country,” he explains.

He doesn’t consider his images to be art; they are instead a form of communication. His war coverage is thus not intended to entertain, but rather to arouse emotions and

push politicians to action. Nachtwey doesn’t see himself as a war photographer, but as an anti-war photographer. He was never a cool observer, committed to balance and neutrality in his work. He takes a position. A quote on the home page of his website makes this clear: “I was a wit-ness, and these photos are my testimony. The events that I have recorded should not be forgotten and must not be repeated.”

Between business and compassionA thought-provoking scene from the film “War Photog-rapher” by the Swiss documentary filmmaker Christian Frei: The photo editors of the German magazine “Stern” are choosing images by James Nachtwey for a photo series. Nachtwey himself is not present as the editors are assessing the photos, discussing which image is best suited as a teaser for the article – a grieving family in the war,

The American war photographer James Nachtwey is no neutral observer. With his images, he takes a stand for the victims. For this purpose, he enters time and again into a world of danger, in the process discovering limits – his own and also those of the people who look at his photographs.

Reality, up close

By Gregor Ingold

Theme: Crossing boundaries, between the fronts

James Nachtwey (63) was born in New York and is considered one of the most important contemporary war photographers. He sees himself, however, as an anti-war photographer. Influenced by the student move-ments of the 1960’s and the war in Vietnam, he decided to become a photographer, with the goal that his photographs should give a voice to the victims of wars and conflicts, and thus help bring about changes in policy. He taught himself photography by studying books of photos and spending time in the darkroom. His first photo reportage dates from 1981; its subject was Northern Ireland. Since then, he has worked in many conflict zones around the globe, documenting wars as well as so-cial issues. For his work, he has received numerous honours and awards, including the World Press Photo Award, twice, and the Robert Capa Gold Medal, five times. He has received four honorary doctorate degrees from American universities. The documentary film “War Photographer” by the Swiss filmmaker Christian Frei provides excellent insight into Nachtwey’s working methods. The film was nominated for an “Oscar” in 2002.www.jamesnachtwey.com

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James Nachtwey: As a war photographer, trouble spots around the world have been his workplace for 30 years.

Photographing reality

an emaciated famine victim or a wheelbarrow carelessly stacked with several dead bodies. The scene illustrates all too well that war photography is a business as well as a public service as far as the media are concerned.

James Nachtwey is very aware of this contradiction. “No one in his right mind becomes a war photographer for money. It’s much too difficult and much too risky, and the pay is modest to begin with. Yet everyone has to make a living. Doctors, nurses, NGO’s, as well as war photographers earn their money from the misfortune of others. Although what we do is for their benefit, I’m sure not one of us ever accepts a paycheck without some sense of irony and guilt.”

Nachtwey has put together numerous photo-reportages on his own initiative, and successfully placed them with several well-respected magazines. Examples include a report on the inhuman conditions in the state-run orphan-ages in Romania, which was published after the fall of the Iron Curtain in 1989. It was a success, as various inter-national relief agencies stepped up their involvement in providing help to these disadvantaged people in Romania.

“Most of the time it’s difficult to gauge the direct effect of photographs in the mass media. For me, it’s an article of faith – a belief in people’s innate sense of generosity, their sense of right and wrong, the ability to identify with others, the refusal to accept the unacceptable. But sometimes we become aware that our pictures have had a direct, measur-able impact. On my own initiative, without an assignment from a publication, I decided to document the famine in Somalia in 1992. The pictures were eventually published as a cover story in the ‘New York Times Magazine’, and it had a major impact on the relief efforts. A delegate in Somalia of the International Committee of the Red Cross later told me: ‘We enjoyed tremendous support due to the ‹New York Times› article, and when months later the UN and UN-OSOM came to the rescue, we could proudly say that 1.5 million people survived thanks to what is, and will remain, the largest ICRC operation since World War II. James’ pictures made the difference.’” He never received a more meaningful compliment for his work, says Nachtwey. At the same time, he is aware of the limits of what he can do. He compares the impact of his images on world affairs with the shifting of sand in the desert, constantly in motion.

Border experiences in extreme situationsJames Nachtwey works in the trouble spots around the globe, always in critical situations. How can he bear this misery? “Having a sense of purpose is what gets me through all the physical and emotional obstacles,” he says. “I feel anger, grief, sorrow, but I try to channel them into my pictures.” Journalists should not exercise self-censorship. Even if something is so horrible that you can only look at it with the greatest difficulty, it is still our re-sponsibility to document it. Whatever it is, it may be very painful, we may experience a sense of guilt and shame, but those are emotions we have to overcome. People should know when something unacceptable is happen-ing so that change becomes possible. Our job is to create awareness and put pressure on public opinion. The people making the decisions that cause such things to happen must be held accountable, knowing that millions of people have seen these pictures and that they want something to be done. Even the most disturbing image could never reproduce what millions of war victims actually experience.

Working in constant dangerIn his work, Nachtwey constantly involves himself in situations of the greatest danger. He has already been wounded several times, and has witnessed colleagues who were killed right beside him. He is always working at close range, right in the middle of the conflict. “When you get into a firefight, it’s natural that you look for cover. But at the same time, I’m already working out how I am going to keep moving and where I need to be to the make the most effective images. Otherwise, there’s no point in going to the front. It’s my job. If you want to show reality, you have to have the courage to walk into some extreme situations.”

At the same time, Nachtwey knows that his work in the world’s trouble spots has left its traces on him personally. His fellow photographers attest, however, that for a war photographer, he has not become too cynical. But because of his relentless focus on his work, he has never been able to live a life that included a normal relationship. “I know that I’m paying a high price for my work. All those years spent in the wars have made me a sadder and lonelier person.”

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“If your pictures aren’t good enough, it means you didn’t get close enough,” Robert Capa once said, the renowned American war photographer (1913 – 1954). This principle has become the credo of James Nachtwey. He never uses telephoto lenses in his work, but rather moves in physically, very close. “It’s not technology that creates a good image,” he says with conviction. “It’s your eye. For me, it’s a question of intimacy. I want the person looking at my image to have the sense that he’s sharing the same space with the person I’ve photographed.”

Colleagues and critics alike acknowledge that he succeeds in doing this. He man-ages time and again to create photographs that are different from those of all the others. This does not bring him only praise. Nachtwey has also been criticised for his aesthetic sense in depicting the horrors of war. He himself says that he owes this sensibility to the people he photographs, out of respect and sympathy for them: “That tragedy and beauty can coexist is a paradox of life. That seem-ing contradiction has been the theme of art and music and literature since the beginning. Perhaps that paradox is what makes the misery of others accessible to our souls, so that we can feel compassion and from that take action.”

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In the crossfire: To capture his images, James Nachtwey is always

right in the thick of things.

Rwanda, 1994 – Survivor of Hutu death camp.

Bosnia, 1993 – Mourning a soldier killed by Serbs and buried in what was once a football field.

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The Hotel FloraAlpina is located a bit outside the centre of Vitznau. From their rooms, guests have a free, unob-structed view of the Lake of Lucerne and the Alps. They are living on the sunny side of life. Hardly ever does a guest wander into the area where the service buildings are located, behind the hotel. There’s not much to see here. The panorama is restricted by a hill which partially blocks the view of the lake. But this doesn’t seem to bother Ma-rio Waser. His world, which he has built up over the years, unfolds in all its splendour and uniqueness not outside, but inside, the farm buildings.

Mario Waser’s apartment is unusually spacious and yet extremely contorted. Each room has its own name. There is the hunter’s parlour, the music room, the mountain room, the sleep-strip and the gentlemen’s room. Old-fashioned lamps shine light on the things they are meant to illuminate – for example a desk or kitchen table – while leaving each room its dark corners and shadowy secrets. It is no secret however that the gentlemen’s room got its name simply because that is where Waser sits now and then with his companions, dining on a pork roast with dried beans and enjoying life.

There’s no question about it – it’s the world from 1900 to 1950 that has mesmerised Mario Waser so completely. This native of Nidwalden maintains a lifestyle that people today have long left behind: no computer, no TV, no mi-crowave oven, no dishwasher, and in most of the rooms of his flat, even no heating. But for all that, he’s got firewood in the kitchen, a mechanical typewriter, knickerbockers and flat caps, a tube radio, and a phonograph with many vinyl records.

At home in the world of yesterday

Theme: At the limit between two ways of life

Origin and beginningsHow did it come to pass that Mario Waser has become so comfortable at the limit, slipping between one era and another? How is it that he became so ensconced in a period that he never even knew from personal experi-ence? “There’s no doubt it all has to do with my parents’ house,” he says. His father ran an upholstery business in Lucerne, and Waser soon caught on to the fact that in his father’s workshop, upholstery was being created for fur-niture of very high-quality craftsmanship. This impressed him and awoke in the proud citizen of Wolfenschiessen the sense of a product’s durability. At the same time, the young Mario observed that quality and durability were less and less in demand – both by manufacturers as well as by consumers. Hand-in-hand with the advent of plastic prod-ucts came a throwaway mentality which in his opinion has had a negative impact on the quality of consumer goods. Waser wanted to resist this trend, which he saw consum-ers blindly following. He took the decision to pay close attention to the quality of the things he bought. And be-

Mario Waser (41) hails from Wolfenschiessen (NW) and grew up in Lucerne. After training as a waiter and a chef, he worked in numerous restaurants and hotels in Switzerland. For several years, he worked on large cruise ships. Then, back in Switzerland, he held various manage-ment positions in the hotel industry. He spent the last six years as head of technology and events in the hotel FloraAlpina in Vitznau. But this is soon coming to an end: In September 2011, Waser is moving to Lucerne, where he will have the opportunity to manage the guest house “Wolhusen Bad.”

In Vitznau, there is a museum that is not a museum at all. Step across the threshold of this building, and you enter a very unusual world. The rooms are brimming with stories and old objects. Here, in the old farmhouse building belonging to the Hotel FloraAlpina, lives Mario Waser. He is 41 years old, lives like someone from a bygone era, and is quite happy doing so.

By Johann Thalheimer

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Yesterday’s man: Mario Waser (41) lives and dresses like someone from his grandfather’s era.

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cause he found less and less of these things in the present, he began to look for them in the past. Even with music.

Jazz, swing and the CharlestonWaser’s musical fondness for jazz has various reasons. Here too, the question of quality plays a role. “Jazz,” says Waser, “is real music with clear instrumentation and an interplay in which the different parts of the music are optimally coordi-nated.” He is not able to warm up to vague “music out of a can.” By this Waser means music that is artificially mixed on the synthesizer and computer. “That kind of music is to jazz what a ready-cooked meal-in-a-bag is to a creative multi-course dinner, where each item on the menu is prepared fresh from the market.” There’s no question which menu Waser prefers... after all, he is a trained chef in addition to a few other professional qualifications, such as maître d’hôtel, golf club salesman in northern Italy, waiter on cruise ships, bicycle mechanic, DJ, event organiser, house technician and chaperone on board a private yacht. But back to the music. With jazz, Mario had found his era. The period from 1900 to 1950 seemed to him not only musically very creative and productive. He thinks of Paul Whiteman, Bix Beiderbecke, Lil Hardin Armstrong – and less of Glenn Miller, whose orientation was too centred on the mass market. Also in terms of the used items in his pos-session, he discovered that in these five decades, numerous products of exceptional quality were produced: household items, bicycles, binoculars, children’s toys, pocket knives, bayonets, rifles, Sunday trousers, work clothes, coats, vests, trunks, chests of drawers, suitcases, backpacks, safes, ashtrays, lighters, sofas, armchairs, dressers, mirrored

wardrobes, tables and beds made of solid wood. Waser’s apartment is full of all of these items. And standing in the middle of this rich trove is Waser, dressed in tune with the period, most often with a burning cigarette in his hand. Not all of the items of his clothing are from the period itself. From time to time, Waser gets a friend to tailor some trousers or shirts for him, but using old patterns.

Waser explains, laughing, that it had happened that tour-ists had arrived at his house wanting to pay admission “to visit the museum.” Occasionally, theatre groups or event organisers ask to borrow items from him to use onstage or as items of décor to add a touch of period authentic-ity at various events. Waser is always happy to help out. Meanwhile, not only has his collection grown, but also his conviction that with his lifestyle, he is on the right track.

It’s the others who are pushing the limits Asked if he felt like an outsider because of his fondness for old stuff, Waser’s answer is clearly no: “I am not somebody pushing the limits; some outsider looking in,” he insists. “I live sustainably. I waste nothing.” Then he ponders a moment, lights the next cigarette, smokes a few puffs, and adds, “The people who really push the limits are the ones who consume without any inhibition, living in thrall to their throwaway mentality and leading a life that is anything but sustainable.”

Mario Waser tries to implement the concept of sustain-ability as fully as possible – not only materially, but also ideologically. He quickly realised that there is not much point to owning a couple of nice old one-speed or three-

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speed bicycles. You should also use them to get around if you want to behave towards the environment in a sustain-able way. So wherever possible, Waser takes one of his old bikes. On Sundays, he only goes out on “Severin,” which among his stable of bicycles is the “best horse in the barn.”

The little stories of everyday lifeFrom Vitznau, Waser often rides by bike to the Canton of Nidwalden, where he will pay a visit to his many relatives and friends. He has maintained a close relationship with his beloved home canton, even if he only lived there for a short time. Nor does Mario Waser have any fear of longer tours. One morning, when he woke up feeling like shaking a leg that evening, he rode from Vitznau via Zug, Horgen and Sargans to Bregenz on Lake Constance, arriving that evening at the Austrian town just in time for the dance. “I under-estimated the headwind in the Rhine Valley,” he adds apologetically, “but on the other hand I now know where all the Hilti factories are located.”

On another occasion, Waser wanted to see the place where the Rivers Reuss and Aare join at Brugg, believing that he would automatically arrive at the confluence if he simply set out from Lucerne and kept following the Reuss. But things were not so easy, as the roads don’t always fol-low the river in densely built Switzerland. Without realizing it, Waser drifted further and further away from the Reuss, and suddenly found himself on the banks of the Rhine instead. But instead of getting angry, Waser could now continue down the Rhine. Always going with the flow.

And such is life. Sometimes you are looking for India and you end up discovering America. Another time, you are searching for the confluence of the Aare and Reuss in Brugg and you end up in Strasbourg (where a plate of fine Burgundy snails awaits you). The main thing is to remain true to the trail of your life.

Short and sweetMario Waser, do you use prepared products when you cook?No, never. I have my own garden and grow lots of my own food. I buy bread and cheese directly from the farmer, and everything else at the village grocery. I don’t need a large-scale distributor to live.

Do you still write letters?Of course. Official correspondence with a typewriter, private letters by hand.

Do you own a cell phone?No, not as a private individual. The old telephone with the rotary dial suits me just fine. And as I happen to be in the process of moving house, for the moment I don’t have a working connection – and the world is not coming to an end.

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“There’s no end to the number of things that fascinate me about the animal world,” says Jörg Hess. “I’ve always understood animals as beings that have a connection to us humans. They belong to the living world like trees and plants. What we share with animals and all of nature is being alive. Like them, we humans also rely on structures – on forests, water, intact habitats.” What may sound like a creed is not one in fact, as creeds are not in the nature of this 74-year-old Basel zoologist. Rather, it is the realisation of an observer who has spent the greatest part of his life outside, in the forests, alongside rivers, in the mountains.

In his attachment to nature and especially to animals, Hess has been shaped by his father, who got up on Sunday mornings at four o’clock and went out into the woods to observe the animals. “He never forced us kids to go with him, but he invited us,” says Hess. It was up to the children to decide whether they wanted to spend the first four hours of their Sunday mornings outside in the forest or at home in a warm bed. Jörg Hess went with his father and found his enthusiasm permanently contagious.

Early impressions in BaselHess grew up in Basel. After uneven school experiences, he became a commercial apprentice and went to school in the evenings to qualify for his Matura diploma. This was followed by zoology studies at university. “While still doing my studies, I began to focus on the mother-child relationship of gorillas in the Basel Zoo,” he explains. Out of this interest grew an extensive project that has kept him occupied his whole life long. At that time, it took four or

five years to complete a dissertation in zoology. For Hess, the observation period alone – before evaluating and writ-ing up the findings – took twelve years, which led to some raised eyebrows on the scholarship committee. “They thought something was wrong with me,” Hess smirks. And maybe they were not entirely wrong, because after twelve years of observations, the young scientist was thinking less and less of completing a thesis and more about making a career as a freelance zoologist. And so it turned out.

“Yes, in my entire professional life as a zoologist, I’ve cer-tainly pushed the limits,” says Hess. “I’ve deviated from the conventional path.” Otherwise, he insists, he would not have been able to reach his goals. But there were also disadvantages. “If I needed money for specific projects and had to submit applications to foundations for funding, I already felt from the start that with a Ph.D., doors would have opened more quickly.”

In the vast world of the natural sciences, zoologists occupy only a niche. And within this niche, Jörg Hess found for himself another, more specialised niche. He admits frankly: “I was never a team player, but always a bit of a lone wolf who never wanted to be tied to one institution.” Neither to the zoo, nor to the university. He never considered himself as a researcher from the university complex, but simply as an observer. “If I have two or three months’ time to do anything, I notice that I automatically tend to spend the time observing animals and not – as perhaps others would do – evaluating and analysing data,” says Hess. “I’d rather head for the animals than head for my desk. In that respect,

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The contorted study belonging to Jörg Hess is crammed full of books, notebooks and cameras. One wall is hung with animal drawings. Underneath them is a shelf on which sit several skulls. Boxes full of photographs, tins and other paraphernalia round out the backdrop. In front of all this sits the zoologist, telling us stories about his wildlife observations in Africa, in Ticino and in Basel. There’s no question about it: Hess is a man with a passion.

Watching life while living it

By Johann Thalheimer

Theme: The limits of convention

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Zoologist Jörg Hess, a man with a passion, seen here in his study in Basel, a room full of stories.

Jörg Hess (74) grew up in Basel. In 1967, Hess began doing research on the mother-child relationship in gorillas at the Basel Zoo, sliding into the broad field of wildlife observation. Observing and taking notes also included photography – at first at the zoo, then increasingly in Africa as well. Over a number of stays, Hess developed a very special relationship with the mountain gorillas in Rwanda and Congo. During these trips, a wealth of unpublished pictures were taken. From these stunning photographs, his latest book Mountain Gorillas – an Homage was created, which has just been published by the Echtzeit Verlag in Basel. This splendid trilingual volume, sparing in its descrip-tions but rich in images, gives a touching insight into the life of the mountain gorilla families.

I’m definitely an outlier as a zoologist as well.” But Hess never felt like an outsider on account of this, because he was never ostracised – neither in Basel nor anywhere else. It was his decision. It was the path he consistently chose.

Everyone allowed him to work on his own. First, his family gave their consent, which was important to him, because they were also bearing some financial risk, since Hess never aimed to land a permanent job. “I was lucky to have a wife who supported me and was willing to bear the consequences of my decisions with me,” says Hess. His wife cared little about money and a formal career. She told him, “Do what you want to do,” offering uncondi-tional support. “As far as my family and other people were concerned, my commitment to the gorillas meant that I was a long-term absentee,” admits Hess. “In that sense it was definitely an ego trip for me, but it was also just what touched me and moved me the most.”

Alone, and yet not alone, in AfricaHess is often asked, how do you stand being all alone in the rain forest? To that question, Hess responds, “I’m a zoologist. As a zoologist, I can never be alone. Wherever I am, I’m surrounded by other creatures with whom I exist in a relationship.” Occasionally, he even talks to the animals, carrying on a dialogue with them. Animals com-municate with each other in a very complex and diverse way. “Why,” Hess asks himself, “should I not even try to communicate with them?”

In Africa, Hess lived for a short while at the research station run by Dian Fossey in Rwanda. Every day, while conducting his studies of the mother-child relationship, he accompanied a family of mountain gorillas. With them he experienced the close phylogenetic proximity of humans and great apes. For example, he saw the interaction between the young and the old. Gorilla families frequently range over considerable distances. When they are on the move, they adapt their speed to that of the elderly members of the group, who remain fully integrated in the community until they die. The mountain gorilla family with which Hess lived often wandered around for hours in the volcanic mountains, frequently advancing up steep hillsides. Ziz, the silverback male and head of the family, would go ahead with the younger individuals, and the old followed behind.

The two oldest individuals in the group were thus Flossie, the 48-year-old female gorilla, and the then 50-year-old Jörg Hess. Frequently they walked up the steep slopes together, side by side. Hess was always glad when Flossie decided to take a break; he could also rest and recharge. But Flossie kept a close eye on her walking companion as well, and seemed relieved when it was Hess who sug-gested a break and sat down. With this shared hardship in common, the zoologist and the female gorilla bonded. To this day, Hess still waxes emotional when he thinks back to the closeness between him and Flossie, or to the mutual social respect that prevailed in the community. “For the mountain gorillas, I was more than just a hanger-on that they tolerated.”

Hess and Flossie could also count on Ziz, as the silverback male would always stop and wait when he noticed the two “old folks” lagging behind. And in his family, not much escaped Ziz’s attention. He appeared to possess an uncanny instinct for dangers – also for dangers that did not threaten him, but other members of the commu-nity. Once Hess slipped on uneven ground in the craggy mountains, slid downhill and only managed to prevent himself from falling into a ravine by grasping on to an exposed root. Hanging there above the abyss, he thought to himself, “If this root gives out, I’m a goner.” But seem-ingly out of nowhere, Ziz suddenly appeared, grabbing the zoologist by the sleeve and pulling him up from his peril-ous situation, over the edge and back onto terra firma.

Hess is still not clear how the silverback became aware of his situation and why he helped him. “For me, it was a fundamental experience to feel how Ziz took me into his protection when he realised that I needed help. He did this in comparable situations with other gorillas, too.”

The great apes do not speak, but they do communicate among themselves, using an incredibly diverse and sophis-ticated system. For them, their communication system has the same richness as language has for humans. Gorillas differentiate sounds, make use of mimicry, use gestures, postures, movements and complicated actions in order to express something specific. “A gorilla certainly perceives more from a human being than a human from a gorilla,” says Hess. For the Basel-born researcher, the members of the gorilla family have been a lasting influence. “Even to-

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Even in old age, he has retained his patience and curios-ity, which as an observer he needs if he wants to discover some hidden corner of nature’s reality. “There are so many crazy and exciting things that hardly anyone can imagine. And yet you can see them, if you are persistent enough in your observations.”

Last year in Ticino, Hess observed some crab spiders in chestnut shrubs. The females fold the tips of the leaves over and then stitch them up with their gossamer thread. Inside this fold she lays her eggs, from which tiny little spiders hatch. “I wondered why these miniscule creatures are always sitting at the very ends of the leaves.” After several hours of observation, Hess discovered that they are waiting on the leaftips for a favourable breeze. When this arrives, the little spiders quickly shoot a sheer fibre into the air. If this thread is long enough, the wind carries it away – along with the little spider – and deposits them somewhere new, into a new habitat. “Theoretically, I knew that this is what happens to the young crab spiders. But in my entire life, I had never seen the process with my own eyes.”

As so often happens when the 74-year-old talks about his observations both large and small, his story becomes very lively and his eyes light up with enthusiasm about the fullness of life, which he discovers everywhere. And then he pronounces the sentence which is his guiding principle: “To me, observing means watching life while living it. That is exactly what interests me and what accounts for my professional activity.”

Jörg Hess: Mountain Gorillas – an Homage Trilingual (German, English, French) Echtzeit Verlag, Basel, 2011, www.echtzeit.ch

For additional information: www.joerghess.ch

day, 25 years after my longest stay in Africa, I often wake up in the morning and the first thing I think is, I wonder how Umurawa is doing? What is Pandora up to?” In those moments he can see the gorillas again in his mind’s eye, as vividly as if his stay in the Virunga Mountains had ended only the day before.

When Hess first went to Africa, many of his friends and acquaintances in Basel warned him not to go alone. It was dangerous; you’ll be risking your life, they said. The primate researcher thought differently. From his 25 years of observing gorillas at the zoo, he knew that the apes would never do him any harm, not in Basel nor in Africa. He knew he could count on that.

When Hess was in Rwanda, he would occasionally listen to a shortwave radio to find out what was going on in the outside world and in Switzerland. It was late April 1986, and Hess recalls: “When I switched on the radio, the top news was the nuclear disaster at Chernobyl. Later the same year, in September, there was the chemical spill in Schwei-zerhalle, which was a big scare for everyone in Basel.”

Hess learnt of both disasters while listening to the short-wave in the mountainous rain forest, and both times the thought that went through his mind was, “So who is living more dangerously? Me, living out here completely cut off from civilisation, or the people in the civilized world, living right next to these high-risk installations?” In any event, Hess had the impression that with his gorilla family in the Virunga Mountains, he was safer than his family in faraway Basel.

Ticino – the third homeAt 74, the grey-haired zoologist knows that he is now too old for longer stays with the African mountain gorillas. “Ticino is closer,” says Hess, still lean and wiry as a young-ster, “and this is my refuge, where no road leads. As long as I can manage the path up to our house, the Ticinese environment is no less stimulating for me than Africa.” He relates stories about the many interesting sub-tenants there, who provide him with material every day for new discoveries and observations: house mice, leaf-rolling wee-vils, dormice, hornets, martens, snakes, lizards...

Mountain gorillas in Africa’s Virunga range, photographed by Jörg Hess.

The best-known measure of a currency’s purchasing power parity is the “Big Mac Index.” It compares the prices for a Big Mac in different currencies worldwide and states that

the hamburger, if converted to a single currency, should be priced the same everywhere in the world.

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that is exactly the crucial point in the current crisis: At the moment, there is still no evidence that the liquidity created by the central bank is flowing to a significant extent into the economy. Instead, a large part of this liquidity is sitting in the accounts of banks at the Federal Reserve. For this reason, U.S. monetary policy should remain expansionary for the time being, with low interest rates. The increas-ingly robust economy and the U.S. job market, improving at a better pace than expected, both point to the fact that even in the U.S., a turnaround in interest rates is due – we expect it in the first quarter of next year. In Europe this has already taken place.

To come to a final assessment of Bernanke’s monetary policy, it remains to be seen whether he uses the “liquid-ity” painkiller again in a timely manner. The fact that he ever used it at all was correct, however. The expansionary U.S. monetary policy does not only have an impact on the economy, but also on the financial markets and exchange rates. For that reason, the dollar exchange rate fell this year under strong selling pressure.

In the following section, we look for a fair valuation scale for the Swiss franc against the U.S. dollar and the Euro, present some different concepts and finally will shed some light on what is, in our view, the most appropriate solution.

Is the Swiss franc really overvalued?Since its all-time low against the Euro in October 2007, the Swiss franc (CHF) has increased by more than 30 percent. Especially in the last year, it rose further and prompted the Swiss National Bank (SNB) to intervene in the foreign exchange market on an unprecedented scale. Even against the U.S. dollar (USD), the CHF is currently very strong, costing less than 90 centimes for one dollar. In the year 2001, a U.S. dollar was worth twice as much. Is the Swiss franc really as significantly overvalued as is repeatedly claimed?

From the Big Mac and absolute purchasing power parity...The best-known measure of purchasing power parity is the “Big Mac Index,” which is published every year in the well-known British business magazine The Economist. This index states that a product (in this case the hamburger), if

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Slowly but surely, a painful truth is making its way through many parts of the financial community: The Chairman of the U.S. Federal Reserve, Ben Bernanke, is printing too much money and does not seem to understand that he is thus steering us toward hyperinflation. Some commenta-tors go even further. They say it is the aim of U.S. mon-etary policy to bring about hyperinflation, because only then could the mountain of debt – which, please note, is the work of Bernanke’s colleague, Treasury Secretary Tim Geithner – be cleared away. You could compare this view with the charge that a doctor would administer large quantities of morphine to his patient during an emergency operation in order to make him addicted. Not a pretty com-parison, granted, but a very similar scenario...

It often fades from our attention that the plight which has been going on since 2007 is a financial crisis. This is important, because financial crises can have a deflationary impact. Other economic crises, such as the bursting of the dotcom bubble in 2000 or the recession caused by the oil crisis in the ’70s, were not financial crises and therefore had no deflationary effects. The best-known deflation, which emerged from a financial crisis and continues to this day, started in the late ’80s in Japan. Financial crises do not have an inflationary impact, because they gen-

erally lead to diminished balance sheets in the private sector. To express it another way, if a property suddenly has only two thirds of its original value, the owner will immediately have to pay back a significant portion of his mortgage. This forces him to save. At the same time, he will have less money available to spend on other things. As a consequence, banks see demand for loans from private individuals and corporations necessarily decrease. And

Monetary policy and exchange rates: What is the fair value of a currency?

Macro:

By Dr. Thomas Steinemann, Chief Strategist of the Vontobel Group

U.S. monetary policy should remain expansionary for the time being, with low interest rates.

converted to a single currency, should be priced the same everywhere in the world. According to this simple method-ology, the Swiss franc is overvalued against the U.S. dollar by a staggering 80 percent, as the Big Mac in Switzerland costs the equivalent of USD 6.78, while in the U.S. it is priced at just USD 3.70. Against the Euro, according to the Big Mac Index, the CHF is overvalued by 40 percent. The advantage of the Big Mac Index is that it can be calculated easily, and that it refers to a standardized product with the same quality everywhere. The disadvantage, however, is that it arbitrarily measures the purchasing power of differ-ent currencies only using a single product as a yardstick, i.e. the Big Mac. An improvement is the so-called absolute purchasing power parity, which instead of a single product uses a representative basket of goods and services as its benchmark. For example, the studies conducted by UBS use this methodology, comparing the prices of similar baskets of goods in major cities with each other. Accord-ing to these analyses, the CHF is overvalued against the Euro by around 47 percent against the U.S. dollar by 15 percent. The absolute purchasing power parity is useful for comparing the cost of living in different countries, and is therefore used regularly by multinational companies to set salary levels for their international workforce. However, it is unsuitable for forecasting currency values. The first reason for this is that many items included in the basket of consumer products are not traded internationally, so it is not possible to make an exact comparison. A haircut is a good example. Nobody is likely to travel to Japan for a haircut just because the price of a haircut there is 20 percent lower. Another disadvantage of using consumer prices as the basis for calculating the absolute purchas-ing power parity is that consumer prices include VAT. In international price competition, however, it is net prices excluding Value Added Tax which are relevant. A third dif-ficulty concerning absolute purchasing power parity is that there are considerable differences in quality for the same products from one country to another. It therefore makes more sense to use producer prices instead of consumer prices, because for the most part they include goods that are internationally traded.

...to relative purchasing power parityBecause of the difficulties mentioned in determining absolute purchasing power parity, it is more appropriate to use the concept of relative purchasing power parity. In the case of relative purchasing power parity, it is assumed

that a currency which has a higher inflation rate will tend to be devalued, and vice versa. Therefore, in contrast to absolute purchasing power parity, the price level of two countries calculated in the same currency does not have to be in exact alignment. How do you calculate a fair exchange rate on the basis of relative purchasing power parity? Many purchasing power parity exchange rates are based on a reference year (e.g. 1980). In doing so, it is assumed, rather arbitrarily, that the exchange rate in that

base year was the “true” or “fairly valued” rate. Instead, our approach assumes that an exchange rate averaged over the past 35 years – namely since the introduction of flexible exchange rates – was fairly valued. It is recom-mendable to take as long a period as possible to support the calculation of purchasing power parity exchange rates, since exchange rates – although they do approach the long-term purchasing power parity – may deviate from them even over long periods.

Vontobel purchasing power parity ratesIf we compare the exchange rate of the CHF per Euro with the purchasing power parity exchange rate since 1973, we obtain the following picture (see graph 1).

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Looking at the solidity of public finances, Switzerland is in a much better position than the Euro zone or the U.S.A.

According to this analysis, the CHF is fairly valued against the Euro at 1.29. At the current rate of 1.20, it is therefore only slightly overvalued.

The sharp depreciation of the Euro (previous to 1999, the Deutschmark), from 2.10 CHF in 1975 to the current rate of 1.20 CHF is justifiable considering the inflation dif-

ferential between the Euro zone and Switzerland. While producer prices in the Euro zone have risen by 116 percent since 1975, the price rise in Switzerland, 33 percent, is consider-ably lower. This difference of 83 per-cent corresponds approximately to the appreciation of the CHF against the Euro. Interesting as well is the phase in the autumn of 2007 when the Euro

was quoted at 1.68 CHF, reaching a high, and was thus significantly overvalued – or one could say, the Swiss franc was too cheap. The subsequent appreciation, triggered by the Euro crisis, brought it back to a fair level. Moreover, it is important to note that the purchasing power parity – that is, the fair exchange rate – is not a fixed quantity, but one that dynamically evolves. If the inflation in the Euro zone continues to be higher than in Switzerland, then the fair exchange rate of CHF per EUR will move lower.

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Turning now to the U.S. dollar, it appears that the inflation differential between Switzerland and the United States was still significantly greater than that between Switzer-land and the Euro zone. The purchasing power parity ex-change rate of the USD has decreased from 2.67 in 1975 to 1.04 CHF today, exactly corresponding to the different trends in producer prices in the two countries. Is the purchasing power parity suitable for forecasting exchange rates?In essence, the relative PPP (purchasing power parity) signifies that, in the long run, a country’s currency will rise in value if the country has a lower inflation rate and thus also lower interest rates. This may contradict the intuition of many readers, who think that currency rates usually rise where interest rates are higher. Both views are cor-rect; however, the difference lies in the time dimension. In the short term, i.e. over a period of about one to twelve months, exchange rates do in fact react in such a way that those currencies appreciate where interest rates are going up. Currently, for example, the market expects that in the U.S., interest rates will be raised next year at the earliest, whereas in the Euro zone, further steps are expected to be taken yet this year. This has had an impact on the EUR/USD exchange rate, momentarily raising the value of the Euro earlier this year from 1.30 USD to 1.50 USD. In the long term, however, lower interest rates are an indicator of sound budget management, sound public finances and low inflation – all factors which attract capital for the long term and strengthen a currency. These relationships can also be recognised in the graph. It can be seen that purchasing power parity is not suitable for short-term exchange rate forecasts. Deviations can last too long. It is suitable only for

Dr. Thomas Steinemann, Chief Strategist of the Vontobel Group

a rough assessment of exchange rates, representing at least an objective and transparent approach for assessing the fair value of an exchange rate. This is why, to determine shorter-term exchange rate forecasts, we rely on other factors that influence the rates. Among these, the most significant are the interest rate differentials, the current account balance and the risk appetite of investors. Even including these factors, the outlook is good for the stability of the Swiss franc. For example, looking at the solidity of public finances, Switzerland is in a much better position than the Euro zone or the U.S.A. Moreover, at 13 percent, Switzerland has one of the world’s highest current account surpluses relative to its economic power, while the current account deficit in the United States is 3 percent of GDP.

Conclusion: the Swiss franc is slightly overvaluedOverall, against the general perception of the Euro, the Swiss franc is only slightly overvalued, largely in line with basic realities. The U.S. dollar, however, now appears somewhat cheap in the short term, so we can expect a correction. Longer term, the Swiss franc remains in general a currency which is appreciating.

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In today’s market environment, it has become more chal-lenging to achieve better-than-market returns by investing in global equities. In addition to the current uncertainty about the pace of the economy – inflation concerns in the emerging Asian markets, deflation worries in regions such as southern Europe – the number of market participants, and markets, has grown in the last couple of decades. Previously, for example, a European equity portfolio could be managed without the portfolio manager needing to pay much attention to the rest of the world. Today, it is also necessary to keep an eye on other markets such as China. In addition, the speed with which markets process information has increased significantly. So how do you best maintain an overview over all this? And how do you identify attractive investment opportunities?

The Global Equities Team at Vontobel Asset Management aims to achieve a return of about two to three percent per year after costs, over a full market cycle – i.e. from an eco-nomic downturn through to an overheating or stagflation phase. How do we do this? As active asset managers, we focus mainly on understanding the individual performance of companies and selecting the ones that are attractively valued. The so-called bottom-up approach followed by Vontobel Asset Management is very demanding: The selec-tion for the portfolio of the relatively few candidates that should outperform the overall market is much more difficult and time-consuming than, say, “purchasing” an index.

Focusing on performance – but sustainably

Opportunities: Alternative investment universes

Fundamental analysis on an equal footing with sustaina-bilityFor this reason, the quality of the analysis is critical. Our analysts examine the opportunities and risks that concretely arise and take these into account when assessing a com-pany. The portfolio managers invest in attractively valued companies that take advantage of opportunities in these ar-eas, manage risk and develop long-term earnings potential. This integrated approach sets us apart from the so-called “best-in-class” approach used by most of our competi-tors, which rather mechanically invests in companies that perform best execute within their industry in terms of the realisation of environmental, social or ethical standards.

Better recognising opportunities and risksThe consideration of sustainability factors has become a firm and integral part of our financial analysis. This has signifi-cantly helped to improve the investment process and pro-vide a more comprehensive view of the opportunities and risks of a particular investment. The sustainability assess-ment helps to identify unique opportunities of the company, for example in connection with the recent Chinese five-year plan. In this plan, the Chinese government is aiming to reduce energy consumption for each Yuan generated by 16 percent by the year 2015. This is creating excellent condi-tions for companies that are active in energy efficiency. In addition, risks can also be better considered, such as the ef-

Anyone who invests money wants to earn a return – that much is obvious. But how one’s money should be invested is where opinions start to differ. More and more investors are plac-ing value on a company’s social and environmental aspects as well as responsible management. Others want to see that fi-nancial risks, such as the accident in the Gulf of Mexico or the catastrophe at Fukushima, are minimised. With our integrated investment process, we are of the belief that investing sustain-ably protects performance and makes a positive contribution.

Text: Steve Triantafilidis, Head of Global Equities Vontobel Asset Management

fects of corruption in the Indian telecommunications sector. In such cases, in addition to our own sustainability analysis, cooperation with external credit rating agencies that are ac-tive in the sustainable investment sector also play a role.

Beyond this, we recently defined, in cooperation with our British partners Hermes Equity Ownership Services, a comprehensive engagement strategy, including exercis-

If you want to invest your money sustainably, you have several options. Two of our core product lines are grouped together under the designation “Global Change.” On the one hand, these are so-called “global trend” products that focus on topics such as new resources, alternative energies, energy efficiency and clean technologies. On the other hand, we also offer “Global Responsibility” funds. These are products with a regional focus, investing in com-panies that are attractively valued and environmentally conscious and which do business in accordance with social principles.

The importance of sustainable management is now widely established among investors and companies – the ac-cident in the Gulf of Mexico and the nuclear disaster of Fukushima having irreversibly changed the world. In the

short term, for example, the expansion of renewable energies depends very much on relevant environmen-tal factors. In the medium to long term, there is no alternative to renewable energies. Growth will pick up, accompanied by a high degree of innovation and job creation. For example, companies doing business in the area of the intelligent electrical grid are particularly interesting. Companies that are active in energy ef-ficiency also have good future prospects.

Generally, in these innovative segments there are often wide ranges in the valuation of company shares. As a case in point, the wind and solar sectors have already undergone a correction recently due to exaggerated short-term growth expectations; they are currently moving toward levels that are historically rather low.

ing our voting rights. We now actively exercise our voting rights in the shareholders’ meetings of the companies in which we have invested. Further, in dialogues with these firms, we voice our concerns – whether they are financial or sustainability-related. This allows us, even after the investment decision, to remain close to the management of these companies, to be heard and to continuously strengthen our information base.

Sustainability has many faces

A sustainability analysis is now an integral part of our financial analysis.

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More competitionAbove all it is new regulatory requirements that are driving the structural change. Emerging now are both suprana-tional and national rules that will play a role in this process. The proposed agreements between Switzerland and Germany as well as the UK concerning the withholding tax will have a lasting impact on Private Banking. The same applies to national regulations such as the German law to strengthen investor protection. Among the supranational regulations which will fundamentally change the way Swiss institutions conduct business are such rules as the FATCA (Foreign Account Tax Compliance Act) and MiFID (Markets in Financial Instruments Directive). The new Lugano Convention also deserves mention, as it regulates, among other things, the agreement of which jurisdiction is authoritative in the provision of a service. As a result, all these guidelines will increase competition and change clients’ needs. The shift taking place does not only apply to cross-border activities. In place of traditional offshore banking, cross-border and onshore models are emerging. The business is shifting to the home countries of the clients. For financial institutions, this means that, more than before, they need to adapt to country-specific requirements. And as a consequence, clients expect more intensive care. Because of this, the demands are increasing on the services an asset manager must provide. Competition is increasing at different levels. The competi-tive environment has been broadened by the replace-ment of traditional offshore banking. In addition, more and more banks or banking groups are penetrating into the business with wealthy private clients. In Switzerland, for example, this includes regional and cantonal banks, which now operate new Private Banking departments. For their part, traditional Private Banks are also intensifying the competition by constantly expanding their network

of offices. All these activities ensure that the pressure on margins will increase.

The new reality does not simply fence in old playgrounds. It also forces banks to fundamentally review their traditional business model and make significant investments. Much de-pends on developing efficient and cost-effective IT systems and processes. Also, investment in new locations, or the recruitment and training of personnel are often necessary.

These are big challenges for Private Banking. And it raises the question of possible solutions. How can banks adapt to the new conditions? The future will be decided primar-ily by three factors: market expertise, investment expertise and advisory expertise.

Market expertiseThe business model of the new reality must serve the cli-ent locally and support him globally. A successful provider therefore needs to adapt individual, market-specific mod-els to the respective national or regional environment as well as offer customised products and services, such as the various tax documentation required in relevant jurisdic-tions. For customised offers, specific processes and struc-tures need to be developed. At the same time, however, it is essential to adjust the models for different markets in such a way that they meet different customer needs and still make synergies possible. A “one-size-fits-all strategy” is not viable. For a Private Bank, this means that it must focus on its most important markets. This is the only way it can maximise its invest-ment opportunities and ensure future growth. On the basis of a risk and opportunity analysis, a bank must un-dertake the exercise of prioritising the markets it wants to focus on (growth markets). Consequently, this focus leads to rigorous decisions concerning non-focus markets. In the

New reality. Private Banking was hit by a major structural wave. The emerging paradigm shift that came into being about two years ago is leading to a new reality in this business.

No one-size-fits-all strategy

By Peter Fanconi and Martin Zulauf

Blue extra

published in May 2011

in the Private Banking

supplement of “Finanz

und Wirtschaft”.

short to medium term, such strategic decisions will result in earnings losses, and they will have organisational as well as structural consequences.

Investment expertiseAsset management is the central element of a Private Bank’s performance. In addition to safety and discretion, the client’s primary concern is the sustained increase in the value of his assets. Over time, he wants to see an increase in the relative size of his assets compared to his needs, the development of his purchasing power and the develop-ment of the investment markets. In order to achieve his long-term goals, he demands active asset management from his Private Bank. In this process, the strategic asset allocation must be adjusted continuously to global shifts.

The breadth and depth of services offered by banks have sharply increased in asset management. Crucial to success is the bundling of investment expertise. In order to optimise the results for private clients, specific capabilities from dif-ferent fields need to be brought together, and the experi-ences gained with private and institutional clients need to be combined. An integrated business model effectively allows different competencies to be merged within an “investment business.” On this basis, the bank can inform its clients quickly and effectively, so that decisions can be taken at the right time.

But how can banks meet the many new challenges in a comprehensive advisory process? Client care has to take place close to the client, and it requires proactive commu-nication about the opportunities and risks associated with investment alternatives – for example, also by making use of modern media. It is essential that client advisors have access to dense, high-quality know-how. In the future, they will take on more the role of the communicator and coordinator, developing individual client solutions together with internal and external experts. Reaction time is criticalIn addition to the traditional asset management or invest-ment advisory services, such services as financial and tax planning, credit counseling and retirement planning also belong to the spectrum of services offered. This expanded offering, as well as their market-specific adaptations to individual needs, leads to tailor-made investment recom-mendations. Individuality and a sophisticated range of services will shape the advisory process in the future.

The change will require significant effort and a willingness to actively shape the change. For Swiss Private Banks, it will be necessary to consolidate and strengthen their first-class credentials. To do this will require convincing services, expertise and credibility, as well as substantial investments in people, structures and systems. The change will not be

Advisory expertiseClient demands on the care offered by a Private Bank are continuously growing as well. For financial institutions, it is critical that they draw the right conclusions from the re-cent financial crisis and act to strengthen the confidence of their clients. This requires a more individualised and inten-sive level of support. First, the client and risk profile should be analysed in significantly more detail than was often the case before the financial crisis. The advisors must also constantly adapt their work to a changing environment. In addition to the greater degree of individuality, more trans-parency and enhanced risk monitoring are crucial for the client. In this context, banks must also take note of new regulations designed to protect private investors.

EnvironmentSupranational regulations | National regulations

New realities in Private Banking

Market expertise A | Market expertise B | Market expertise C• Market-specific business model for selected focus markets

• Products and services adapted to national or regional environment

Investment expertise • Active asset management

• Bundling of investment expertise and capabilities within forceful “Investment Business”

Advisory expertise A | Advisory expertise B | Advisory expertise C• First-class competence in advice

• Elevated degree of specialisation and service spectrum

successfully navigated by all market participants equally. Speed of reaction and consistency in making the adapta-tions will be deciding factors.

Approaches to solutions for the biggest chal-

lenges in Private Banking depend on market

expertise, investment expertise and advisory

expertise.

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Christophe Grünig, what is the success of your company’s investment advice based on?The investment advice that our clients are entitled to expect is based on three pillars: First, they benefit from our integrated business model comprising Private Banking, As-set Management and Investment Banking. We are able to call upon all this expertise – especially research – and put it to use for our clients; it flows without time delay into the preparation of investment proposals.

What are the other two pillars?The second pillar is our active investment style across regions, asset classes and currencies, an approach we care-fully cultivate because we are convinced it is best. This is in contrast to a passive philosophy, which merely reflects a given index. We pay particular attention to emerging global changes, such as population growth in emerging markets. Global Change as a Megatrend offers opportuni-ties for superior returns.

And the third success factor?We profile our clients using elements from behavioural finance. Based on specific questions, clients’ situations and patterns of behaviour are determined in order to derive the best possible strategy for them. This disciplined focus on a clear investment strategy leads to better longer-term performance.

What does this mean for clients concretely?If a client decides to seek advice from us, we carefully and comprehensively analyse his personal situation, his wishes and objectives. On this basis, we integrate insights from behavioural finance, taking into account of course how much knowledge the client himself brings to the table. Then, together we define the investment and risk strategy. Based on this starting point, the client advisor develops a personal investment proposal for the client.

How is this investment proposal developed?Primarily, the investment proposal has to fit with the per-sonal risk-return profile of the client and the goals he has defined. In preparing it, the client advisor is supported by our advanced IT systems as well as the combined expertise of our integrated bank. But the final decision to implement it is still the client’s to make.

How is the client relationship structured following this decision?On an opportunistic basis, the client receives appropriate buy and sell recommendations for his portfolio from our investment specialists. His portfolio is systematically adjust-ed on a daily basis – and if the portfolio deviates from the

For high net worth clients, the central focus of any investment advice is on their wishes and expectations. The goal is to achieve added value for the client, relative to the risk undertaken and the developments on the financial markets. What this means in detail is explained in this interview with Christophe Grünig, Head of Wealth Management of the Vontobel Group.

Advisory expertise at Vontobel

By Renata Fäh

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investment strategy due to market volatility or changes in the recommendations, the client advisor notifies the client promptly and presents concrete proposals for adjusting it. Thus, the client is always assured that his portfolio is in agreement with his investment strategy. At regular inter-vals, we also check whether the client’s personal situation – and therefore his needs – may have changed, too.

Do investment advisory clients have a choice between various mandates?Yes. Our clients can choose between three different advi-sory mandates, each with a different scope of services. The individuality of each client is our priority. We believe it is im-portant that the client gets what best matches his needs.

Investment advisory services – the client has the choiceAdvisory mandateThe classic advisory mandate is aimed at clients with the desire for traditional Private Banking, in-formation and advisory services. The central point of contact is the personal client advisor. He advises and assists clients in all aspects of investment advice and develops together with the client a cus-tomised solution. The portfolio is monitored daily on a systematic basis. The client makes his own choice how frequently he wishes to be contacted. Depending on the occasion, the client receives ap-propriate buy and sell recommendations based on the experience of the bank’s investment specialists. Rounding out the service are regular reporting, plus accounting, credit card and payment services.

Advisory mandate premiumThe advisory mandate premium is aimed at clients who desire more proactive investment advice that goes beyond that of the classic advisory mandate. Actively and opportunistically, the client advisor proposes attractive investment proposals to the cli-ent. At regular intervals (e.g. every three months), the portfolio undergoes a thorough review. This process is overseen by specialists in Investment Consulting. In addition, individual asset and per-formance reporting, as well as comprehensive tax reporting, are also included.

Advisory mandate expertWith the advisory mandate expert, the client receives direct access to specialists in Investment Consulting and thus to expert knowledge in individual asset classes. The Investment Consul-tants provide valuable investment information first-hand, on a timely basis. Together, individual trading strategies, for example to hedge against market risks, are developed and implemented. At the request of the client, the client advisor can take daily contact with the client. Of course this mandate also includes regular portfolio analysis and advice.

Interested? Ask your client advisor for more information, or

contact us using the reply card at the end of this issue.

Vontobel launches “structured products with benchmark bonds”Vontobel is launching a new product line in the area of structured products with reference bonds. Free to choose a benchmark bond based on the borrower, for example a reference bond issued by the industrial group Holcim, investors can manage the risk in their portfolio in a more targeted way, and realise additional return opportunities. Find out more at www.derinet.ch/Referenzanleihen.

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Vontobel Brokerage wins top spot – five timesThe Thomson Extel Survey is one of Europe’s most well-known rankings in the brokerage area. Every year, the performance of a large number of brokers is evaluated and qualified by a blue-ribbon committee of industry experts in London. For 2011, the Vontobel Group’s brokerage occupies the top place in no less than five categories. In addition, we also scored the Number Two position in a sixth category and Number Three in a seventh. Altogether our performance demonstrates once again Vontobel’s impressive expertise.

Family or career?At the second “Women & Finance” event held in Zurich, Dr. Hans Vontobel, Chairman Emeritus of the Board of the Vontobel Group, and fellow Director Prof. Ann-Kristin Achleitner discussed the issue of reconciling career and family. After a musical contribution performed by two beneficiaries of the Lyra Foundation, Dr. Vontobel took the floor. He outlined briefly the historical development of working fathers and mothers, sprinkling his remarks with some personal experiences from his own life, and stress-ing the importance of striking a balance between career, family and leisure. Prof. Achleitner then vividly described the challenges for women who want to have both families and careers. Digging deeper into this theme, the journalist Esther Girsberger also raised several key issues.

News from the Vontobel Group

Blue Pages

Change of leadershipAt its Annual General Meeting on 3 May 2011, the shareholders of Vontobel Holding AG elected longtime CEO Herbert J. Scheidt as Chairman of the Board. His previous position is being handed over to his successor Dr. Zeno Staub. In May, Axel Schwarzer took over the former function of Dr. Staub as Head of Asset Management. In addition, Clara C. Streit was elected as a new member to the Board.

Current monographs from the Vontobel Foundation seriesEuropeIn his essay “Europe”, Dirk Schümer analyses the history and the nature of the continent of Europe and its many diverse identities. Europe, in and if itself, does not exist. Rather, many Europes do. Next to each other. Against each other. With each other.

PrivacyPrivacy is a precious commodity for us human beings. It defines the spaces in which we can enjoy an undisturbed state of being by ourselves and turning inward, and of act-ing – or not acting – without the need to justify our choic-es. On the other side of the ledger sit human curiosity, the monitoring activities of the state and the collection of data by the consumer industry. Joachim Günter highlights this contrast and illuminates how we deal with it.

Copies may be ordered free of charge at www.vontobel-stiftung.ch

GC Zurich – conciliatory season finale and good prospects for the futureA difficult season for the Grasshopper Club of Zurich came to a conciliatory end. The team will continue to play their future games in Zurich, with the Owners Club ensuring solid financing for the next few years. In parallel, the team managed to find its way back onto the winning track, demonstrating its potential. Bank Vontobel, as a main

Cooperation with Hermes Equity Ownership Services launched successfullyIn the framework of the “Global Trend” and “Global Responsibility” equity funds, Vontobel Asset Manage-ment is reinforcing its commitment to sustainability. In collaboration with British partner Hermes Equity Owner-ship Services, a comprehensive strategy has been defined to take advantage of voting rights and to foster corporate dialogue. Based on this, the voting rights at the companies that these funds invest in will be actively exercised, and a constructive dialogue conducted with the management of selected firms as well.

sponsor of the GC and the GC House of Talents, looks back with satisfaction on our first year of collaboration. The consistent implementation of the new talent concept, built on the foundation of a secured financial footing, opens up very encouraging prospects for the team for the years ahead.

Exclusively for blue readers, the GC’s first team has signed three original competition footballs. Send an e-mail to [email protected], and you’ll automatically be entered in our drawing for one of the three balls. Last day to enter: 31 August 2011. Conditions of participation on page 35.

3 original

competition

footballs to

be won

projects we initiate – whether it’s a school or a partnership. Keeping a project maintained is much more difficult than building one ourselves. We do things like adding on a floor, replacing a broken generator, or purchasing a school bus. We want to see how our initiatives are developing – and we would also like to enjoy seeing the results. Continuity is absolutely critical. Only long-term support can bring about the results you want.

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It will soon be 25 years since Beate Embacher-Pirelli first traveled to South India with her father, a trip they under-took so he could meet his goddaughter in person. The visit became the impetus for a life’s work that has lasted to this day: the RUDEM Foundation. After the death of her father Rudolf Embacher, she took over the role of Chairwoman of the Foundation, and she now carries on the work that they once started together.

Mrs. Embacher-Pirelli, a trip to South India more than 20 years changed your life. In what way?In 1987 I traveled with my father to Madras in southern India, to visit his sponsored child Mary. Until then, his only contact with India had been by mail. We wanted to get to know Mary and get an idea of her situation on the spot. To see the misery in the streets with my own eyes was a real shock. Reality in Madras was beyond what I could possibly have imagined at that time. Since then, I travel at least once every year to India – up until two years ago, I still made the trip with my father and mother; now I go on my own or with my sister. The RUDEM foundation is a family commitment for us. What is it that makes you want to get involved like this?I myself come from a happy family, and I very much ap-preciate the environment in which we are privileged to live. India is a land of great contrasts. In Mumbai, you see excessive wealth, and just a few kilometres away, there are people living in slums with hardly any possessions at all. Luxury and misery are neighbours there. I have never experienced this peaceful coexistence, despite the huge differences, in any other country. And even though India has been catching up over the past few years, one third of all the people living there are still poor. That’s 400 million people. And that is 400 million people too many.

How do you help these people concretely?Our first project was to rebuild a nursery for the poor people living in a rural area. After that, more projects followed every year: dormitories for women teachers and homeless families, an infirmary, building a primary school in Karaipakkam. The primary school, for example, is a project that keeps us oc-cupied on a continuous basis. It serves children from the age of three. The earlier they can be taken into the school, the better. They are very eager and want to learn. We were able to create an island here where the children have no cares.

Do you follow up on all the projects, even years after their completion?I am convinced that we also have to follow through on the

RUDEM FoundationSince 1990, the RUDEM Foundation has pursued the goal of supporting orphans and the children of needy parents in South India, addressing all the areas that are critical to the long-term improvement of their lives. Together with local experts, the foundation implements projects to assure the orphans and street children a safe home, good education, healthy diet and medical care. If you would like to contribute to this mission, it is possible to become a long-term sponsor in addi-tion to making a donation.

Contact: [email protected], www.rudem.chDonations: PC 80-12337-5

An island of serenityCare & Share: When luxury and misery are neighbours

By Renata Fäh

Beate Embacher-

Pirelli, Chairwoman

of the Board of the

RUDEM Founda-

tion, is dedicated to

continuing the work

of her father Rudolf

Embacher.

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 decision-makers

called “absolutum”.

Many people experience, for example, the death of a loved one as a complete fracture, something which determines whether they can stand up straight again and start over. In this sense, setbacks are absolutely critical for each of us. Situations at the limit are our permanent destiny, so to speak. They are absolutely critical for us, because in them we have to decide how we want to live, how we start each day anew in the struggle for survival, how to deal with the failure that even the greatest success cannot avoid, with suffering that not even the deepest desire can overcome – and all this in the face of death, which we may fall prey to at any time.

In a positive sense, these situations lead us to an unat-tainable whole, to an infinity. If you can master the situation at the limit, internalising the struggle, the suf-fering, the guilt and death, and are able to go on, you transcend these limits of life, without circumventing them. You gain a kind of infinite experience, as little as this may have to do with empirical and objectively veri-fiable experience. It will not usually be very spectacular – perhaps in contrast to experiencing the infinite in music, religion or the intoxication of love. It manifests itself in a feeling of transcendence, as Jaspers says. It is the feeling that there is still more than what, right now, I can see and touch with my hands.

This feeling comes over us whenever we are at the limit. That is why we understand the infinite as a life principle, which makes “transcendence” possible in all finite life situations.

Transcendence means “exceeding to a higher level.” In situations at the limit, our life is designed to over-come the frontiers that we cannot displace and never-theless rise to a new level of possibilities. To put it in a positive way: Every situation at the limit is a beginning. Every day I begin: new projects, new solutions, new people. At the limit, I make a new beginning with myself as well. At the limit, I look beyond my own beginning and see my fulfillment in that which I have started and am continuing.

At the limitColumn: Dr. phil. Manuel Bachmann

We are all edge dwellers: We all live at the limit. Our exis-tence is limited. We exist only within limits. This starts with the fact that we only ever find ourselves in a “situation,” never able to grasp the whole – our whole life, the whole world or the infinite. Our existential situation is that of a “situation at the limit.”

Such a situation is “like a wall which we bang up against, a wall on which we come to grief.” This is how the most important existential philosopher of the 20th century, Karl Jaspers, formulated the matter. Situations at the limit entail struggle, failure, suffering, guilt and the fact that we must die.

These situations do not arise; we are always in them already. No one escapes them. In this sense they are final. They make us lonely. They are not manageable, cannot be controlled, cannot be deceived. Once we become aware of them, we see behind them nothing.

This is not pessimism; it is the realism of life. Because we can deal with situations at the limit in two ways: Either they beat us down (in Jaspers’ words) to “a dull brooding in the helplessness” that we cannot escape from struggle, failure, suffering, guilt or death. Our modern, fun-based society has merely replaced brooding here with exuber-ance. Or we develop ourselves, and begin to truly exist at the frontier.

RestaurantRestaurant HeugümperWaaggasse 4 (near Paradeplatz), 8001 Zurich, Phone +41 (0) 44 221 16 60, www.restaurantheuguemper.ch Just a few steps away from Paradeplatz, the restaurant Heugümper is located in the heart of Zurich. The highly successful symbiosis between history and Zeitgeist creates an ambience that invites diners to linger. The restaurateur couple Pamela and Marco Pfoster provide the hospital-ity and a refined yet stimulating environment. Culinary surprises are in the hands of chef René Suter.

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Inside ZurichCulture and cuisine: July to October 2011

EventsZurich Theatre SpectacleLandiwiese, 18 August to 4 September 2011www.theaterspektakel.ch The Zurich Theatre Spectacle is one of the most important European festivals for contemporary performing arts. Thirty to thirty-five groups of artists from all round the world win over audiences with their performances. The festival site is located directly on the Lake of Zurich and, thanks to its charm, excel-lent ambience and its many restaurants and bars, has become a magnet for people from well beyond the city limits.

Live at sunsetDolder Ice Rink, 13 July to 24 July 2011www.liveatsunset.ch On Zurich’s Adlisberg you can enjoy – alongside the fabulous views of the town – an open-air concert of the highest class. High-profile stars such as Joe Cocker, Tom Jones and Chicago will be headlining the show this year at the Dolder Ice Rink.

NZZ PodiumNZZ Foyer, Falkenstrasse 11, 8008 ZurichTickets: Two weeks before the PodiumPhone +41 (0) 44 258 17 80, www.nzzpodium.ch Thursday, 22 September 2011, 6:30 p.m.Attention Switzerland! The state of the nation, with Ambassador Paul Widmer, Permanent Representative of Switzerland to the Council of Europe in Strasbourg

Thursday, 20 October 2011, 6:30 p.m.Between magic and market with Prof. Beat Wyss, Professorial Fellow, SIK-ISEAPartners: Bank Vontobel, Swiss Re

The Long Night of Zurich’s MuseumsSaturday, 3 September 2011, from 7:00 p.m.www.langenacht.ch Under this year’s motto, “The Arts of Seduction,” approxi-mately 30 members of the Association of Zurich Museums will seduce you into a strange world full of beauty, passion and sensuality. All over the city you will find exhibitions on art, history, science and technology.

Museums The Drawer Museum –

the smallest museum of modern artKunsthaus Zurich, 13 May to 4 September 2011 Phone +41 (0) 44 253 84 84, www.kunsthaus.ch It took seven years, but Herbert Distel has filled all five hundred rooms of his museum. Each room is 54 × 48 mm in size and houses one work of art, expressly created for the museum by a famous artist. From Picasso to Miró to Tinguely, they are all represented in the Drawer Museum.




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Editor Bank Vontobel AGMarketing Private Banking (M. Rose, R. Fäh)Gotthardstrasse 43, CH-8022 Zurich Telephone +41 (0)58 283 71 11

[email protected]

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 illustrationCover front and back: Getty Images; page 29: Jonas Kuhn; page 30: Christian Clavadetscher; page 31: Grasshopper Club Zürich; illustration page 33: Jürgen Willbarth; page 34: Herbert Distel, Das Schubladen-museum, 1970 – 1977

English versionJames Wade, Hurst & Freelancers

Conditions of participation in the competition page 31:No correspondence will be conducted concerning the competition. Legal recourse is not permitted, nor will any payments be made in cash. Employees of the Vontobel Group are excluded from participating. Deadline: 31 August 2011. Winners will be notified by e-mail.

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