Vontobel Portrait 2011 - Swiss made

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Swiss made

Portrait 2011

The Vontobel Group offers the unique combination of an independent

Swiss private bank with the innovative strength of an active inter-

national asset manager. Our integrated business model with the three busi-

ness units Private Banking, Investment Banking and Asset Management

ensures close cooperation and allows us to successfully pool our exper-

tise and resources for the benefit of our clients and business partners.

Each day, around 1,400 Vontobel employees around the world create

sustained added value for our clients: they diligently manage and moni-

tor the client assets entrusted to us, while carefully tracking develop-

ments in the financial markets and observing global events. Whether

they are in the heart of Zurich, in New York, Hong Kong or Dubai – em-

ployees in 19 international locations identify trends and devise appropri-

ate innovative investment strategies and products. We focus on areas of

business of which we have an expert knowledge and we earn the trust

of our clients by delivering on our promises.

The stable shareholder structure of the Vontobel Group and the long-

term focus and entrepreneurial philosophy of our major shareholders are

the key to our solidity and reliability. The Vontobel families hold a majority

of around 52% of votes and capital. In addition, Vontobel’s strategic

partner, Raiffeisen, holds a stake of 12.5% in the company.

The rating agencies Standard & Poor’s and Moody’s have analyzed and

rated Bank Vontobel AG and Vontobel Holding AG. The ratings (as of

31.12. 2010) confirm the recognized financial strength and solidity of

the Vontobel Group:

The Vontobel Group

Standard & Poor’s: Vontobel Holding AG A

Bank Vontobel AG A+

Moody’s: Vontobel Holding AG A2

Bank Vontobel AG A1

Legal information

The Vontobel Portrait 2011 is intended solely for information purposes. The information and views contained in it do

not constitute a request, offer or recommendation to use a service, to buy or sell investment instruments or to conduct

other transactions. In addition, there is a risk that forecasts, predictions, projections and results described or implied

in future-oriented statements may not prove correct. Information and statements concerning audited financial results

and corporate governance should only be taken from the Vontobel Holding AG Annual Report 2010. It is available at

www.vontobel.com or can be obtained by post upon request.

1Vontobel Portrait 2011

Swiss made is a promise of quality and performance. It is used in reference to Switzerland’s

financial and industrial centres, which are among the most attractive in the world and have,

for years, been drawing in high levels of investment and welcoming global companies and

skilled professionals. The Swiss financial and banking sectors have overcome the impacts of

the financial crisis far more effectively than other international centres and continue to enjoy

a very high level of demand for their products and services globally. Against this back-

drop, we are convinced that Switzerland will successfully master the challenges resulting

from the growing international pressure on leading financial sectors and that it will emerge

from this period of change even stronger than before based on its positioning as a centre of

excellence for high-quality financial services.

Swiss made is a pledge that is founded on core Swiss values such as solidity, trust-

worthiness, quality and precision. These values form the cornerstones of the Swiss brand.

Combined with a willingness to embrace change, they will guarantee the continuation of

Switz erland’s success story. These are the beliefs and values that have also long been the

hallmarks of Vontobel.

Our relationship with our clients is built on a combination of trust and performance. This

is one of the reasons why clients select us as their financial partner and why many of these

relationships continue from one generation to the next. We want to impress our clients with

our services by focusing on value enhancement, risk awareness and innovation. One ex-

ample is Vontobel Global Change Investing. Based on this approach, we enable sophisti-

cated investors to benefit from sustainable investment opportunities resulting from the pro-

cess of global change.

If we consider our 2010 financial results and view them in the context of the continued

challenging operating environment, it is clear that Vontobel has delivered a solid and

successful performance. Our substantial net inflow of new money in the amount of

CHF 5.5 billion demonstrates the high level of trust that our clients and partners continue to

place in Vontobel. The basis for our bank’s future growth thus remains intact.

Vontobel has a strong and successful brand – like Switzerland itself. This was confirmed

by the most recent brand rankings published by the business magazine “Bilanz”, in which

Vontobel achieved fifth place among the Swiss banks. “Its good name, strong traditions and

experience, and its commitment to upholding Swiss values are proving successful,” was the

explanation for this excellent ranking.

The Portrait 2011 examines the theme Swiss made from various perspectives and pres-

ents the views of both external and internal specialists on this topic. They all share the belief

that the Swiss brand provides a decisive advantage in the international competitive arena –

especially for the Swiss financial centre – and represents a special pledge of quality.

Dear reader

Dr. Urs Widmer

Chairman of the Board of Directors

Herbert J. Scheidt

Chief Executive Officer

Prof. Dr. Torsten Tomczak __ Professor of Business

Management and Marketing

Director of the Center for Customer Insight and the Center

for Innovation of the University of St. Gallen

Prof. Dr. Torsten Tomczak

No other mark of origin evokes such unique and positive associations around the world as

the Swiss cross. What is more: the Swiss brand entails significant goodwill that can be used

in almost any product category or industry.

Products and services that radiate ‘‘Swissness’’ project an image of ‘‘top international

quality’’, ‘‘reliability and trust’’ or ‘‘exclusivity and luxury’’. This reputation has been built up

over a very long period and can be traced back to the 16th century.

Entrepreneurs such as Abraham-Louis Breguet were the first to establish

the image of Swiss reliability. During the period of industrialization,

this image was cultivated by leading figures such as Henri Nestlé, Fran-

çois-Louis Geigy and Hans Caspar Escher. The tradition has been

maintained today by typically Swiss companies such as Schindler,

Lindt and Kambly that operate successfully in the international mar-

kets. However, it is the watch-making and banking industries that have shaped the image

of Swiss business more than any other sectors.

To explain the true value of the Swiss brand image, it is necessary to look beyond purely

economic aspects: this image has also been formed as a result of the country and its people,

as well as by academic and political factors. The magnificence of Switzerland’s mountain

landscape, its multicultural population, Roger Federer, the construction of the longest rail

tunnel globally, the world’s largest research centre – CERN – in Geneva, the country’s policy

of neutrality and the robust state of its economy and public finances are all factors that have

significantly influenced the way in which Switzerland is perceived beyond its borders.

Switzerland’s brand is a ‘‘meta brand’’ whose positive image has – fortunately – remained

very stable, even during the financial crisis. This reflects the fact that ‘‘Swissness’’ is now

firmly established as a result of the country’s many recognized strengths and qualities, which

have existed for years and provide a strong and sustainable basis with which to meet future

challenges.

One of Switzerland’s key advantages in the competition between international centres is

undoubtedly its globally renowned education system. Together with Switzerland’s reputa-

tion for open-mindedness – which enhances its relationship with other countries – its educa-

tion system and academic and scientific achievements are of decisive importance for its

image and prosperity.

The Swiss brand has developed over a number of centuries. The contribution that it

makes to Switzerland’s prosperity is not to be underestimated. The same applies to invest-

ments in the country’s state-of-the-art infrastructure, which projects a positive image of

Switzerland to the rest of the world and earns it international respect. The Swiss road and

“ The Swiss brand has developed over a number of centuries. The contribution that it makes to Switzerland’s prosperity is not to be under estimated.”

‘‘Swissness’’ – a strong brand

2 Vontobel Portrait 2011

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rail network is just one example. The federalist structures within Switzerland’s political sys-

tem – which is founded on the principle of consensus and a clear commitment to democ-

racy – also underpin Switzerland’s positive image. The Confederation’s political principles

and frameworks have always been regarded as exemplary throughout the world. Research

has repeatedly shown that Switzerland’s image abroad is much better than is assumed by

the Swiss public. This may also be related to the essentially modest tone that Switzerland

adopts in its dealings with other countries, thus further strengthening the largely positive

image of the country. This generates benefits for the Swiss economy, which reciprocates by

delivering high-quality services that reinforce the concept of ‘‘Swissness’’ as part of a mutu-

ally beneficial relationship.

This positive relationship between ‘‘Swissness’’ and the Swiss economy is based on a

healthy combination of major industry (chemicals/pharmaceuticals and the metal and elec-

trical industries), mid-sized sectors such as IT and tourism, and the countless high-per-

formance small and medium-sized enterprises (SMEs) that often remain in the shadow of the

global economy but are international leaders in their respective fields and thus also act as

excellent, low-key ambassadors of the Swiss brand. This range of different companies also

benefits from another strong relationship: the interplay between Switzerland’s financial cen-

tre and the ‘‘traditional’’ Swiss centres of industry, knowledge and learning. It is important

for these different centres – which are a source of Swiss quality – to work in close conjunc-

tion with one another and to not allow themselves to be divided by the comments of envi-

ous observers. Any such move would not only send out a negative signal but would proba-

bly also meet with disapproval outside Switzerland.

The Swiss brand is an asset that has been built up over the centuries by countless brand

ambassadors and makes a very important contribution to Switzerland’s prosperity. All those

who use the Swiss brand must be aware of the brand’s heritage and perform their roles as

brand ambassadors in the characteristic Swiss style – acting reliably and delivering the very

highest standards of quality. ‘‘Swissness’’ is a pledge.

A Swiss hallmark: Bahnhofstrasse in Zurich


2010 was a year of change: which developments did

you consider to be most significant during this period?

Dr. Urs Widmer __ The operating environment altered

dramatically last year for the Swiss banks and their

employees. You simply need to think of events relating to

bank client confidentiality or stricter regulatory require-

ments as examples. As the longstanding Chairman of

the Board of Directors of the Vontobel Group, how-

ever, the issue I considered most important in 2010 was

to create the right basis for the management changes

within our bank. I believe that we did so successfully

and I am pleased that we were able to reach all the key

decisions on succession issues in good time.

Herbert J. Scheidt __ The changes we are making

within our bank were clearly defined, very well planned

and have received broad support. Both our clients

and employees are pleased about the continuity and

reliability that the management changes will bring.

We have thus created a strong basis for the successful

future development of our bank. In terms of the

changes in the Swiss financial centre, I believe that two

factors are of decisive importance: first, our financial

“Conserving our proven strengths, pursuing new approaches: that is the key to our success”Herbert J. Scheidt, CEO of the Vontobel Group, and Dr. Urs Widmer, Chairman of the Board of Directors, discuss Switzerland’s strengths as a business location, the future of the banking sector and the greatest challenges that lie ahead.


Dr. Urs Widmer, Chairman of the Board of Directors


regulator has succeeded in maintaining its leadership

role in the development of a regulatory framework

that is both appropriate and exemplary by international

standards. Second, our politicians are making good

progress towards resolving the tough international

disputes surrounding bank client confidentiality. While

it is certain that not every aspect of the agreements

will find favour in Switzerland, we must nevertheless

welcome the fact that the conclusion of the new

treaties will eliminate uncertainty and provide clarity.

The competition within the finance industry is

growing increasingly fierce and the pressure

on margins is considerable. Are you sometimes

concerned about the future of small and medium-

sized banks?

Scheidt __ The private banking market is not only

undergoing changes in Switzerland but also in Ger-

many, our second core market. It is probably inevitable

that a number of players – including some smaller

banks – will not survive this period of transformation.

However, size is far from being the only criterion that

counts. What is much more important is for banks to

have a close proximity to their clients and a solid capital

position, coupled with effective cost management.

Excellent advisory services, transparent products and

efficient processes are a winning combination to attract

clients. This is why I don’t have any worries about the

future of our bank.

Widmer __ In a highly competitive environment, what

also counts is whether a bank has a stable shareholder

base and properly functioning control mechanisms.

Vontobel is well positioned in this respect. The Vontobel

family has reaffirmed its commitment to the bank

and has concluded agreements that are valid until 2017

that ensure it will maintain its majority shareholding.

At the same time, our accountability towards our

minority shareholders as a listed bank provides a level

of transparency that is not typical of many private

banks. In the end, it is not just the sheer size of a bank

that matters: it is also important for it to be structured

“ In the end, it is not just the sheer size of a bank that matters: it is also important for it to be structured in the right way.”

Dr. Urs Widmer

Herbert J. Scheidt, CEO

“ Overregulation can hamper growth without being effective and can distort competition.”

Herbert J. Scheidt, CEO

in a way that allows it to deliver solutions that are

optimally tailored to client needs.

The new financial regulations are a dominant theme at

present; they also featured high on the agenda of this

year’s World Economic Forum. What needs to change?

Widmer __ I believe that we need to adjust our value

system. Responsibility and security need to once again

be assigned much greater priority.

Scheidt __ If you break it down to an operational

level, the golden rule is: you should only engage in

business activities that you truly understand.

And if a client explicitly wants to engage in an

unusually speculative transaction?

Scheidt __ A bank and its employees must have the

courage to say ‘no’ from time to time. A focus on

returns and sustainable business practices are not always

compatible.

Anyone who was previously unaware of this fact will

undoubtedly have learned it during the financial crisis.

At Vontobel, we only engage in activities that we

understand and believe in. And if this principle is not in

line with the interests of a client on one occasion, then

it is only fair and professional for us to inform the client

accordingly. This is the way in which we create trust –

and this is our priority at all times, even if it means that

we lose out on the transaction in question as a result.

It appears that trust in the banking world has still

not been fully restored. Viewed from today’s perspec-

tive, do you think it will ever be possible to repair

the damage that has been done?

Scheidt __ Yes, I think this can definitely be achieved

through transparency and fairness – we just need to be

patient. The entire industry has, for years, been held

responsible for the excesses of a few individuals. It will

take time to convince people that not all financial

institutions are the same. However, I am confident that

this will be achieved thanks, for example, to the

conservative system of values adopted by Vontobel

long before the financial crisis.

Widmer __ Yes, the days of excess are now over.

Banks and their employees need to make it clear to the

public that they have understood this fact. For example,

compensation systems that focus on long-term perfor -

mance and prevent excesses will help to restore

confidence in the financial sector. I would also like to

reiterate the point made by Herbert Scheidt earlier:

banks must be willing to essentially avoid engaging in

high-risk business transactions. This may impact

earnings in the short term but will prove beneficial in

the long term.

Do you think the decisions that have been reached

regarding bank regulation will be effective or do you

fear that we will see further excesses in the industry?

Widmer __ The reforms entail new compensation rules,

increased capital requirements and restrictions on

leverage ratios for the big banks. These are important

measures, all of which represent a step in the right

direction. However, I am not under the illusion that

rules and regulations alone will prevent excesses:

what is also needed is a fundamental rethink within the

banking world.

Scheidt __ Simply imposing bans and regulations is never

a solution. Overregulation can hamper growth without

being effective and can distort competition. I remain

concerned about the fact that some financial centres

are continuing to seek competitive advantages by

defining low levels of regulation. However, regulatory

arbitrage is not solely a problem between states:

at present, we are also seeing that large numbers of

former investment bankers are now operating within

hedge funds in order to execute their deals. This

may eliminate certain excesses at bank level but it does

not make the financial markets any more stable.

You have referred to the high standards that exist in

the area of financial regulation in Switzerland. At the

same time, banking confidentiality has been eased –

possibly resulting in the loss of international clients to

the Middle East or Far East. Do you believe that

Switzerland’s competitive position in the financial

markets has been substantially weakened?

Widmer __ The reality is that operating conditions have

become much tougher and we are faced with major

challenges. However, this is certainly no reason to go

on the defensive or to paint a negative picture of

our own financial centre. Thanks to their high level of

professionalism, as well as the legal certainty and stable

“ Excellent advisory services, transparent products and efficient processes are a winning combination to attract clients.”

Herbert J. Scheidt



political system in our country, the Swiss banks

continue to inspire a high level of client trust.

Scheidt __ The Swiss banking industry still enjoys an

excellent reputation internationally. This should not

simply be attributed to old-style bank client confiden-

tiality. The Swiss banks have a tradition of providing

individual advice and of prudently managing risks. The

new agreements governing the provision of legal as-

sistance will not alter the fact that we continue to offer

clients the greatest possible level of discretion. And, of

course, the ongoing euro crisis has served as a strong

reminder for international clients of the advantages

offered by Switzerland and its currency in terms of the

diversification of assets.

The ongoing dispute with Germany has preoccupied

Switzerland’s banks and politicians for a long time.

Do the new agreements really represent a break-

through?

Widmer __ We are on the right track and I am confident

that the talks will be brought to a successful conclusion,

even if a few problems still need to be resolved.

Important decisions regarding the flat-rate with-

holding tax still need to be made. What consensus

do you expect to be reached?

Scheidt __ The flat-rate withholding tax that would be

deducted by Switzerland should be set at around 25%,

i.e. the rate of tax levied by the German banks. If there

were to be a large discrepancy between the two rates,

the Swiss banks would unjustifiably be placed at a

disadvantage. What will be more difficult will be to

define an appropriate rate of tax for the regularization

of legacy assets. I hope that the two sides will manage

to agree on an additional rate of tax without it leading

to the flight of large volumes of assets to non-Euro-

pean offshore centres.

Have the calls for the automatic exchange of informa-

tion now been fully dismissed?

Scheidt __ As already mentioned, the protection of

individual privacy in financial matters is one of the main

hallmarks of Swiss banking. We assign the utmost im-

portance to safeguarding our clients’ financial privacy

now and in the future. I presume that we won’t see

any adverse developments in this respect.

The level of regulation in Western Europe and the US

is high, while growth in areas such as private banking

tends to be weak. In this context, it is increasingly im-

portant for medium-sized banks to pursue strategies

with an international focus. Where does Vontobel’s

future potential lie?

Widmer __ Vontobel operates in key growth markets,

where we are making good progress. At the same time,

I think it is important that we don’t neglect our activi-

ties in our traditional markets. In fact, we are commit-

ted to continuously expanding and strengthening our

presence. This objective is, of course, subject to certain

restrictions in the emerging markets. Vontobel’s growth

strategy is traditionally based on a very long-term

perspective and is very prudent. I can only recommend

that it continues to pursue this direction.

“ Vontobel’s growth strategy is traditionally based on a very long-term perspective and is very prudent.”

Dr. Urs Widmer

Scheidt __ We mustn’t forget that globality is also in

evidence in Switzerland. Take Vontobel Swiss Wealth

Advisors AG as an example: this newly established

company focuses on serving the needs of private clients

in the US from our base in Switzerland. A growing

number of wealthy Americans are seeking opportunities

to invest their declared assets outside their own country

in a perfectly legitimate manner. The same principle

basically applies in the case of wealthy clients from

other parts of the world. These private investors are

seeking reliable financial partners with an international

track record. What is important to me is to preserve

the identity of our bank whenever we are considering

growth strategies. After all, it is the Vontobel brand that

makes us unique.

Which values are embodied by Bank Vontobel?

Widmer __ There are three words that encapsulate our

values: professionalism, continuity and reliability.

This may sound simple enough but it requires a lot

of effort on the part of all our employees at every

level of the bank to deliver on these values.

An unbridled expansion policy is not compatible

with our approach.

Can these values be exported to other continents?

Widmer __ It is evident that every country and continent

has its own perception of values and its own economic

principles. Globally active companies need to recognize

this fact without compromising their own identity.

Certain core values that form the basis of a company’s

inter nal and external identity have to be observed

throughout the company, in all its locations around the

world.

Scheidt __ No matter how much we endeavour to

take account of regional differences, we are, neverthe-

less, committed to upholding the traditional values

and strengths of Swiss banking when operating outside

Switzerland. I was born in Germany and became a Swiss

citizen last year. I therefore know how important Swiss

quality and values are, even in neighbouring countries.

The global economy has been achieving strong growth

since 2010. How do you expect it to develop in

2011 and over the next decade? How optimistic are

you about the outlook for the world economy?

Scheidt __ While I am not one of those people who like

to paint a bleak picture of the economic situation,

I must nevertheless confess that my optimism is muted.

This is because I believe we have made little progress

so far in reducing the financial and economic imbal-

ances within the world. If you talk to members of the

international business community or politicians, their

fears about a repeat of the financial crisis are palpable.

For example, there is a risk that the high level of

sovereign debt in many European countries or the US

could lead to new turmoil in the markets. Whether

or not this will happen depends, among other things,

on how systematically the Europeans tackle their

debt crisis. In addition, there is the threat of raw mate-

rials growing scarcer and of rising prices, coupled with


“ We are committed to upholding the traditional values and strengths of Swiss banking when operating outside Switzerland.”

Herbert J. Scheidt

climate change and the massive decline in prosperity

in many countries. We undoubtedly also need to invest

a great deal in risk management on a global level to

ensure stable developments in the coming years.

Dr. Widmer, you have been a member of the Board of

Directors for seven years, including five years as its

Chairman. What do you regard as the most significant

events during this period?

Widmer __ The financial crisis was undoubtedly the

most dramatic event during this time. No one had ever

anticipated that we would witness financial turmoil

on this scale. I am therefore all the more relieved that

Vontobel successfully navigated the crisis. Another

aspect that is very clear in my mind is, in particular, the

considerable support that I received in my role as

Chairman of the Board of Directors from employees at

all levels of the company during all these years.

Mr. Scheidt, you are handing over the post of CEO

to Dr. Zeno Staub after almost nine years in order

to succeed Dr. Widmer as Chairman of the Board of

Directors. Do you believe that Vontobel is well

positioned for the future?

Scheidt __ Even after the most severe financial crisis

in recent times, our bank remains solid and well

positioned. Our integrated business model has proved

effective. We have built up a strong capital base

in recent years and we have a good team. Our share

has performed comparatively well. And specifically

because we are so well positioned, I am able to

continuously ask myself what we could do even better.

This type of self-analysis and openness is something

that I also expect from Vontobel’s managers and

employees.

Mr. Scheidt, won’t you find this change of roles –

and your departure from the operational side of the

business – difficult?

Scheidt __ No, because I can look back on a very long

and successful period during which I was responsible

for the operational management of Vontobel and was

able to directly shape and structure the business. I now

very much look forward to assuming a different level of

responsibility for the future success of our bank and to

approaching it from a different angle. Another reason

why I am happy to change roles is because I know that

Vontobel will be in the best possible hands when Zeno

Staub succeeds me as CEO. I am also looking forward

to being able to draw on the many years of experience

I have gained as a member of other Boards of Directors

and to being able to devote a little more time to these

commitments.

Dr. Widmer, do you already have plans for your

retirement?

Widmer __ I will continue to exercise various mandates

in other companies through my law firm and I have a

number of cultural commitments. These different

activities will keep me busy both professionally and

personally. At the same time, I hope that I will be

able to devote a little more time to my family and my

hobbies – especially rowing on Lake Zurich.


“ I am relieved that Vontobel successfully navigated the crisis.”

Dr. Urs Widmer

Swiss industry and the drivers of its future success

Hans Hess

The industrial sector is of key importance for Switzerland. It generates 20% of its gross

national product (GNP), provides employment for more than 700,000 people in our country

and creates over CHF 100 billion of added value each year. This is even greater than the

economic contribution from the banking sector, which employs 150,000 people and gen-

erates CHF 26 billion in added value. Countries in which industry remains a major pillar of

the economy such as Germany and Finland – where it accounts for 24% and 25% of gross

domestic product (GDP), respectively – fared much better during the crisis of recent years

than those nations that have neglected their industrial sector. In France, for example, indus-

try only contributes around 10% of GDP, while the figure stands at 15% for the UK. It is

therefore important for Switzerland to nurture its industrial sector in order to ensure that it

can perform successfully in the fiercely competitive global marketplace.

Which operating conditions are necessary for Swiss industry to remain successful in the

future? The first requirement is free access to all global markets – without trade barriers and

tariffs. Switzerland is not far from realizing this goal. The current negotiations to conclude

free trade agreements with countries such as China and India could represent an important

step forward for our country.

What is even more critical for the sustained success of Swiss industry is the high quality

of its workforce: this determines the quality of the products and the attractiveness of the

innovations with which Swiss companies compete in the global markets. A common miscon-

ception is that the level of education of the workforce equates to its quality. This is wrong

because companies need good specialists at all levels, ranging from workers with profes-

sional training to graduates of universities and universities of applied science. In the case of

the latter, the Swiss Federal Institutes of Technology (ETH) in Zurich and Lausanne have a

decisive role to play, guaranteeing a supply of first-class engineers, physicists, mathemati-

cians and scientists. Without practical people and specialists who can translate innovative

ideas into reality and create new products, however, all

this theoretical knowledge would be of little use.

Skills and knowledge alone are not enough to secure

a leadership position in the global battle for clients. An

element of teamwork, enthusiasm and motivation is also

required. After all, industry is all about teams of people

working together to achieve things for other people. This

is why social skills and an understanding of other cultures are increasingly important. Diver-

sity is a competitive advantage – irrespective of whether it relates to the gender, cultural

background or age of the workforce. These differences – and the resulting ability of diverse

groups of employees to see a topic from different perspectives – are often a source of new

ideas.

Innovation is a further factor determining the success of Swiss industry. Our country

does not have a wealth of natural resources. We develop and manufacture products while

paying relatively high salaries. This is why we have to create products and services that gen-

“ Skills and knowledge alone are not enough to secure a leadership position in the global battle for clients. Enthusiasm and motivation are also key factors.”



erate superior client benefits, thus justifying a higher price. This approach is only possible

through innovation – not solely in terms of better technologies but also with regard to our

better understanding of the challenges facing clients. The

world is currently confronted with a number of problems:

climate change, CO2 emissions, the scarcity of energy re-

sources, mobility, urbanization, the supply of food, and

water quality. Innovative solutions are needed to meet all

these challenges. There are countless opportunities for

industrial companies to make a contribution, create employment and earn money in this

context.

The good operating conditions available to Swiss industry include their access to favour-

ably priced risk capital. A strong industrial sector is dependent on the existence of a strong

financial centre that is willing to finance innovation and new technologies, whether it is in

the form of venture capital for start-up companies or equity capital for established firms.

Innovation entails an element of risk. The availability of favourably priced operating loans is

also important. High costs are forcing Swiss industry to work more efficiently – often by in-

creasing its level of automation. Companies must be able to borrow money at attractive

terms to finance the purchase of expensive machines and equipment. Provided these criteria

– open markets, innovation, an adequate supply of favourably priced risk capital and a

high-quality workforce in terms of knowledge, skills and diversity – are met, the future looks

bright for Swiss industry.

Hans Hess __ President of Swissmem

(association representing the Swiss engineering,

electrical and metal industries and associated

technology-oriented sectors)

Degree in Engineering from the Swiss Federal In-

stitute of Technology, Zurich (Dipl. Ing. ETH), MBA

from the University of Southern California. CEO

of Leica Geosystems AG from 1996 to 2005.

Member of the Boards of Directors of several

industrial companies since 2006, including Burck-

hardt Compression Holding AG, Comet Holding AG

(Chairman of the Board of Directors since 2007),

Reichle & De-Massari Holding AG (Chairman

of the Board of Directors since 2007), Geberit AG

and Schaffner AG.

“ A strong industrial sector is dependent on the existence of a strong financial centre that is willing to finance innovation and new technologies.”

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“For me, Swiss made and Vontobel mean...”

“...offering clients an innovative and highly flexible electronic issuing platform, deritrade®, which enables them to rapidly create their own customized products.”Salama Belghali __ Engineering & Develop-

ment Financial Products, Investment Banking

“...applying our Swiss values to ensure the successful development of our business in the future. Reliability, precision and security are qualities that inspire client trust.”Daniel Meier __ Relationship Manager,

Private Banking



“...especially reliability. We are the partner of our clients who entrust their capital to us. We stand for investment processes that one can built on – robust, repeatable and focused on superior performance over time.”Steve Triantafilidis __ Head of Global Equities,

Asset Management

“...combining traditional values such as continuity or stability with state-of-the-art, innovative approaches to create bold, enterprising and sustainable IT solutions.”Roger Erdt __ Head of Content Systems,

Operations


Private Banking – offering even more individual advice to discerning clients

Each investment advisory discussion with discerning

private clients focuses on their wishes and expecta-

tions. The aim is to generate added value for clients

relative to their risk exposures and the development

of the financial markets. To achieve a sustainable

performance while maintaining a prudent approach to

risk, it is essential to take a holistic view of the needs,

expectations and personal circumstances of each client.

This process forms the basis of every well-balanced ad-

visory discussion. Wealthy investors are rightly seeking

state-of-the-art private banking services and are plac-

ing increasing demands on their financial partner. They

require comprehensive advice, service and performance

and, in particular, clear and transparent information.

Vontobel Private Banking incorporates the latest findings from the area of behavioural finance research into its advisory process, thus enabling it to serve the needs of clients in an even more targeted and individual manner.

Marco Savaré and Dr. Claudia Sieber Peyer, Investment and Tax Advisory, Private Banking, in a discussion with clients

After all, it is only if clients truly understand the invest-

ment solution they have selected that they will subse-

quently be satisfied.

The specialists at Vontobel Private Banking are con-

tinuously enhancing the quality of the advisory process

based on these client needs. The incorporation of the

behavioural finance approach is of decisive importance

in this context: it helps relationship managers to reach

far-sighted investment decisions with their clients irre-

spective of current developments in the financial mar-

kets, which may partly be driven by emotional factors.

In line with this approach, insights from behavioural sci-

ence are applied to the investment decision-making

process – making it possible to better forecast the future


behavioural patterns of market participants, even if they

are irrational.

“We use behavioural finance to gain an even better

understanding of our clients and to further improve the

advisory process so that we can offer them specially tai-

lored solutions”, explains Dr. Daniel Kuehne, Head of

Product Management at Vontobel Private Banking. Ac-

cording to the product specialist, the aim is not only to

obtain an increased insight into the clients’ financial

needs but to also work closely with them to further en-

hance their own investment behaviour in order to real-

ize or exceed their jointly defined investment goals.

In addition, Private Banking now draws on the in-

vestment expertise available within Vontobel even

more directly and intensively when serving clients. One

example is its extended offering in the area of Global

Change Investing. In addition, Vontobel is making

Each advisory discussion centres on the needs and expectations of the client

targeted investments in the expansion of its advisory

software and the corresponding systems in order to

support its relationship managers with state-of-the-art

applications.

“We believe that this approach enables us to cre-

ate significant added value for our clients in a transpar-

ent manner, states Dr. Daniel Kuehne. This reflects the

fact that the bank is, on the one hand, large enough

to provide the desired breadth and depth of services

through its own specialists, while being small and dy-

namic enough to respond rapidly and flexibly to indi-

vidual client needs.”

Private Banking addresses the needs of wealthy

private clients. We offer them service and advice

based on a holistic and customized approach. Every

aspect of our offering is designed to ensure a first-

class performance with a focus on independent ad-

vice, individual service and transparent processes.

“ We use behavioural finance to gain a better understanding of our clients and to further improve the advisory process, thus enabling us to offer them specially tailored solutions.”

Dr. Daniel Kuehne __ Head of Product Management, Private Banking


“Switzerland must act globally to preserve its national identity”

Dr. Zeno Staub

From a young age, we constantly compare ourselves with our peers and use our neighbours

as a benchmark. What is true of people is also true of countries: Switzerland compares itself

with the European states that surround it. We examine their government expenditure rates,

economic competitiveness and attractiveness as a location, as well as assessing the quality of

their education system, tax system and public infrastructure.

If we look at the surrounding European landscape – which is dominated by Italy, France

and Germany – we see that Switzerland is well positioned. However, this is precisely where

our problems lie.

First, the Swiss have a tendency towards complacency. If we perform well or very well in

comparisons such as the studies published by the OECD, IMD or World Bank, it is not long

until we hear the shallow argument: “We may not be

doing as well as we used to but we are still performing

much better than the others.” Comforted by this notion,

we then make dubious regulatory policy decisions – be it

with regard to the assessment of internal tax competition

or the structuring of our welfare system.

The second and more serious problem is the reverse of the first. In Switzerland, we like

to rank better than other countries in peer group comparisons but have a fear of signifi-

cantly outperforming them in case this attracts unwanted attention. This desire to remain

inconspicuous grows all the more pronounced, the more unified and homogenous the rest

“ Complacency and peer pressure are two very real threats to Switzerland. An open-minded and internationally-oriented population is key.”

“ It is only by keeping pace with the world’s leading nations that we will be able to maintain our standard of living.”

of the peer group becomes. In this context, traits that are characteristic of our country such

as our direct democracy or the significant legal rights accorded to Swiss citizens, as well as

tax competition or the concept of individual responsibility, are suddenly transformed from

strengths into dangerous distinctions. This can lead to Switzerland being marginalized due

to the inevitable group responses – ranging from ‘‘naming and shaming’’ or exclusion to

demands for our country to conform in order to once again be accepted within the circle

of nations.

Complacency and peer pressure are two very real threats to Switzerland. In both cases,

however, one key fact has been overlooked: Switzerland’s economic strength – and conse-

quently our standard of living – is not the result of us doing the same as our neighbours,

only better. Instead, it is driven by the fact that we are different and it reflects our ability to

compete successfully in the global arena. These are the factors that are relevant in any such

comparisons.

We cannot and should not use the average performance of neighbouring countries as

our benchmark. Instead, we must measure ourselves against the world’s most successful and

dynamic business centres. I am referring here to selected

cities and states in Asia and other emerging markets and

to the flourishing towns and regions of Northern Italy

and Southwest Germany, as well as to London and New

York – depending on the industry concerned. For exam-

ple, the airport express in Hong Kong or Tokyo makes

the Swiss rail system appear outdated, although it undoubtedly compares well with the re-

gional rail service in Italy. And it is the level of corporation tax levied in Hong Kong or Singa-

pore that should give us food for thought – not the corporate tax rates in Milan or Paris.

Switzerland’s desire to be world class is not driven by arrogance; it is simply a question of

survival. It is only by keeping pace with the world’s leading nations that we will be able to

maintain our standard of living and to preserve our unique socio-political framework, as well

as protecting our national identity. If, however, we merely compare ourselves with our direct

neighbours because this is easier or less daunting, our global competitiveness will suffer and

the prospect of joining the European Union (EU) will become more appealing. A focus on

Europe increases the temptation to enter this giant single market, which is safeguarded by

protectionism and destined for mediocrity. The EU would undoubtedly welcome Switzerland

with open arms in order to achieve its goal of ensuring seamless conformity across Europe,

as mentioned above.

How should we address this situation? If we exclude the possibility of rapidly joining the

EU and thus abandoning our individual identity, that leaves us with two options. The first is

more obvious and appears easier – but would lead us in the wrong direction, while the sec-

ond is longer and more demanding but could prove the route to success. The first solution

would be to stage an emotional and nationalistic return to a few core Swiss characteristics

and to thus isolate ourselves from the outside world. One of the greatest perils of the cur-


Dr. Zeno Staub__

Head of Vontobel Asset

Management;

new CEO of the Vontobel

Group from 4 May 2011.

rent fragmented political situation is that those who have lost out under Switzerland’s suc-

cessful approach to globalization are being manipulated by the conservative parties (or the

conservative representatives within the parties).

Were this tendency to increase, Switzerland could find itself adopting a defensive politi-

cal and economic position that would leave it very vulnerable. If our country were to isolate

itself psychologically, it would sooner or later fail to perform essential

duties such as successfully integrating immigrants or further devel-

oping our multilingual federalism and concordance system. The

greatest irony of all is that it is precisely this nationalistic approach

that would be most likely to drive us towards the EU since the subse-

quent economic and intellectual weakening of Switzerland would

inevitably leave us with only two alternatives: to vegetate in eco-

nomic mediocrity within the EU or to languish in isolation. If politically guaranteed market

access to 400 million consumers were to become a matter of survival, then Bertolt Brecht is

likely to be right when he declared: “Food comes first, then morals.”

Any countries that want to preserve their success despite being geographically embed-

ded in an increasingly homogenous group of states – as has been the case in Switzerland for

centuries – will only be able to do so if they retain their individual identity while, at the same

time, striving to compete in the international arena. It is only if we can keep pace with the

world’s leading nations that we can secure our access to export markets without facing demands

for political conformity. This is the only way in which we can extend and diversify our export

markets. This is the only way that we can maintain and further enhance our standard of liv-

ing. And finally, this is the only way that we can conserve our political independence.

To become world class, Switzerland requires a nation of well-connected, cosmopolitan

citizens – and it will continue to cultivate this type of people. Only an open-minded and in-

ternationally-oriented population will be able to master the challenges associated with mul-

tilingual federalism and to promote an inclusive multicultural society. Only a nation such as

“ To become world class, Switzerland requires a nation of well-connected, cosmopolitan citizens – and it will continue to cultivate this type of people.”

Demonstrating our presence in the global arena: Swiss Pavilion at the EXPO 2010 in Shanghai


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this will be able to establish and maintain international contacts and networks that give us

access to the global economy and help to secure our political acceptance. These are the very

abilities that enable certain countries to flourish in the context of globalization and that have

allowed Switzerland to perform well in the long term as a country that is located in the heart

of Europe but remains outside the political sphere of the EU.

Switzerland’s international approach will only gain broad-based acceptance within our

country, however, if the specific characteristics of the Swiss system are simultaneously pre-

served. This involves striking a balance between global economic challenges and the

support for the Swiss militia system. This approach must also promote social cohesion – an

essential factor demanding the careful and conscious refinement of the established structures

in our country. In doing so, Switzerland will attract disapproving glances from neighbouring

countries. Someone who is different is only tolerated if he continuously earns respect with

his performance and remains true to his values and ideals. Thanks to our longstanding

principles and values, we are ideally positioned to achieve this: our humanitarian tradition,

our efforts to help others and our willingness to welcome and integrate people into our

community are all fundamental aspects of our identity.

The path we must take is challenging. It involves systematically aligning our education

system, infrastructure and other locational factors to world-class standards, while conscious-

ly developing multi-polar, global economic and special interest policies and thus promoting

and securing Switzerland’s position as a centre for successful international companies. It is

only by ensuring our economic success that Switzerland will have the political power to cre-

ate a unique combination of direct democracy, federalism, lean and accessible bureaucracy

and internal tax competition. It is only by achieving success in the global arena that Switzer-

land will have the financial resources to continue developing its tradition of humanitarian aid

and its work to help others. And it is only under these conditions that we will be able to

retain our national identity and gain respect for the fact that we are different.

Reprint taken from ‘‘Schweizer Monatshefte’’



Vontobel in Geneva:Vive la différence

All of Vontobel’s branches around the globe share the

same solid values and focus on the same guiding prin-

ciple ‘‘performance creates trust’’ – and yet anyone who

visits the bank’s different locations soon becomes aware

of the special qualities and distinctive character of each

region. This is immediately visible when you glimpse

the sandstone building in Geneva that is home to

Vontobel’s team of 70 employees. Its classical style of

architecture, which is typical of the city, contrasts

sharply with the modern lines and glass façade of

Vontobel’s head office in Zurich. Jean-Pierre de Glutz,

Head of Vontobel in Geneva, expresses the importance

of the combination of diversity and unity within the com-

pany as follows: “Solidity and tradition form the founda-

tions on which our broad-based private bank is built.

These two factors provide a strong sense of cohesion

within Vontobel. And our shared goal is also of decisive

importance: we are committed to generating added

value for our clients relative to their risk exposures and

the development of the financial markets. To achieve

this, we can count on our own internal team of out-

standing specialists and our first-class product offering,

as well as our in-depth expertise that meets the complex

needs of institutional as well as private clients.”

The mindset that prevails among the inhabitants of

Geneva is a fascinating blend that mirrors the historical

development of the city: it was strongly influenced by

Calvinist values such as industriousness and determina-

tion and has, over the centuries, evolved into a highly

prosperous international centre. The self-confidence

that has resulted from this economic success, coupled

with the joie de vivre of its French-speaking population,

has helped to create the unique attitude towards life

that is characteristic of the city today.

As the Head of Vontobel in Geneva – the bank’s sec-

ond largest branch – Jean-Pierre de Glutz has a precise

understanding of his clients’ needs and knows exactly

which strategy will lead to success. “With our core com-

petencies in private banking, investment banking and

asset management, we can offer a combination of first-

class expertise and tailored solutions from a single

source. We place clients at the centre of all that we do

based on the knowledge that it is only by acting as a

highly motivated and reliable partner that we can earn

their trust. At the same time, we are committed to fur-

ther expanding our business activities in the French-

speaking region of Switzerland and to convincing even

more potential clients of Vontobel’s strengths. This re-

flects our aim to systematically grow our operations and

to invest further in promoting our brand and enhancing

our image.”

‘‘First class’’ and ‘‘solid’’ are terms that are also closely

associated with Geneva. A large number of globally ac-

tive companies have been attracted to this city, which is

The Vontobel Group has a presence in 19 international locations, where it operates according to the same proven business model and shared values. Certain regional differences nevertheless exist, as illustrated by its branch in Geneva.


renowned for its international focus, high standard of

living and solid political foundations. It is also home to

more than 20 international organizations. However, this

exceptional environment does not diminish the need for

the financial institutions that operate there to distin-

guish themselves from the competition by providing

first-class services. All the members of Vontobel’s team

in Geneva agree that it is the truly personal service they

offer that is critical in setting Vontobel apart from its

peers. Their systematic focus on client service demands

the very highest level of professionalism and a strong

degree of continuity that inspires trust. This mix of con-

sistency and reliability is regarded as a typical Swiss trait.

Vontobel’s clients assign the utmost importance to sta-

bility – a hallmark of Switzerland and of our company –

and to the goal of long-term wealth preservation.

6, place de l’Université

Jean-Pierre de Glutz, Head of the Geneva branch

Banque Vontobel, Geneva

Structured products: Swiss quality thanks to optimal precision

Despite the countless possibilities in investment bank-

ing, there will never be one single solution that satisfies

the needs of every client. At Vontobel, we have consist-

ently endeavoured to not only offer the highest quality

of investment banking products and services but to

align them precisely to the individual wishes of the end

client. As in the case of clothing, we believe that irre-

spective of quality, tailored solutions are always superior

to ‘‘off-the-peg’’ products.

Unlike in the case of many other banks, Vontobel’s

Investment Banking business is positioned as a service

provider for our wealth and asset management busi-

nesses. The structured products it offers are designed as

investment solutions for private investors and are a sub-

stitute for equities, bonds, commodities and other asset

classes. We construct investment solutions in a way that

ensures they meet the individual needs of our clients as


Bank Vontobel’s Investment Banking business has, for many years, been committed to creating customized investment products that provide clients with highly flexible and innovative solutions. Its success in the market confirms the merits of this strategy.

Francesco Gallo, Senior Advisor, Financial Products Zurich, Vontobel Investment Banking

flexibly as possible and cater for all market environ-

ments and risk preferences. This can be compared to a

Swiss army knife, where clients can order an individually

tailored model that is both solidly and precisely crafted.

Vontobel Investment Banking is one of the few pro-

viders that enables its professional clients as well as

wealth and asset managers to create a product them-

selves, based directly on their own individual goals. This

is achieved using the electronic trading platform deri-

trade.ch, which is available to Vontobel clients. We were

one of the first issuers in the Swiss market to enable cli-

ents to independently structure their own certificates

based on a universe of over 600 underlying assets and a

broad selection of currencies. Historical performance

simulations, dynamic fact sheets, detailed risk classifica-

tions, data on the sensitivity of structured products and

a host of other features are available to professional and


private investors at www.derinet.ch. Vontobel also of-

fers clients first-class support through its comprehensive

after-sales service.

A sophisticated infrastructure such as this requires

a high level of investment – raising the question of

whether this approach is cost effective. “As one of the

leading issuers in Switzerland, we are able to put our

infrastructure to very good use. This balance between

investment and utilization allows us to offer clients at-

tractive conditions. No matter how high the quality of

our products, their prices have to be competitive”, ex-

plains Georg von Wattenwyl, Head of Financial Prod-

ucts, Advisory & Distribution.

The trust that clients and partners place in the ser-

vices of Vontobel Investment Banking is reflected, in par-

ticular, by the positive trends reported by the business

in recent years despite (and also because of) the eco-

nomic crisis. It is today an important pillar of the Swiss

bank, which has been operating in this field consistently

and systematically for many years. Wattenwyl points

to the fact that clients are seeking increasingly custom-

Manuela Quirici, Engineering & Development, Product Legal Zurich, Vontobel Investment Banking

ized solutions: “There is a clear trend towards custom-

ized products. By tailoring our investment solutions to

individual client needs as simply and comprehensibly as

possible, we help our clients and their relationship man-

agers to properly understand the related opportunities

and risks.” Thanks to our electronic issuing platform

deritrade®, Vontobel provides the optimal solution to

achieve this in the area of structured products.

In Investment Banking, we provide private clients,

companies and institutional investors around the

globe with a diverse range of solutions from a single

source. Our advisors and product experts have many

years of experience and in-depth expertise. In addi-

tion, clients benefit from our excellent level of ser-

vice. As well as offering innovative solutions, we as-

sign considerable importance to ensuring the liquidity

and transparency of our products.

“ There is a clear trend towards customized products.”

Georg von Wattenwyl __ Head of Financial Products,

Advisory & Distribution

Cultural, sporting and social commitments

Culture __ Salzburg Easter Festival

The Salzburg Easter Festival is one of the most renowned

and exclusive classical music festivals in the world.

Founded by Herbert von Karajan in 1967 to provide a

platform for exceptional musical talent, it remains true

to this principle today. This is why the Vontobel Group

is proud to have lent its support to this outstanding mu-

sical event as one of its main sponsors for 13 years. A

compelling combination of tradition and modernity is

what connects us to the Salzburg Easter Festival.

Siegfried and Brünnhilde – the protagonists in Richard Wagner’s opera ‘‘Siegfried’’ from ‘‘The Ring of the Nibelung’’

Tradition and modernity – the Salzburg Easter Festival skilfully combines both elements


Shared qualities and values define Vontobel’s partnerships in the area of sponsorship.

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Sport __ Grasshopper Club Zurich

Sport is a unifying force and a source of inspiration. The

Grasshopper Club (GC) has 4,500 members, making it

the largest and most successful multisport club in Swit-

zerland. It has close ties with Zurich and a history dating

back 125 years. The club’s values – which centre on reli-

ability and fairness – fit well with Vontobel’s corporate

culture. We are therefore committed to sponsoring GC

which combines sporting excellence and tradition.

Whether it is on the pitch or in banking, passion and

performance are what matter. GC also adopts an exem-

plary approach to the cultivation of young talent –

based on a credible and sustainable concept. This focus

on young people is a key element of our sponsorship

philosophy.

Society __ NZZ Podium

The Vontobel Group has been one of the main sponsors

of NZZ Podium since it was launched in 2007. The pace

of change in society, the economy and the political are-

na is constantly accelerating and these areas are grow-

ing ever more complex. The latest knowledge and in-

depth expertise are of critical importance in this context.

By sponsoring NZZ Podium, we are supporting a first-

class public forum that provides insights into current is-

sues and in-depth analyses. We believe that the perma-

nent exchange of knowledge across boundaries creates

significant added value for our society. We therefore

want to make a sustainable contribution to this process

through our partnership with NZZ Podium.

The meaning of life and the search for happiness – the theme of a panel discussion between leading experts in May 2010

Passion and performance – the key to success

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Small and medium-sized enterprises: the backbone of our strong Swiss economy

Bruno Basler

They may not attract the same high level of media at-

tention as major corporations but Swiss SMEs neverthe-

less form the backbone of the Swiss economy as the

country’s largest employer.

They create energy and drive through the collabora-

tion of their innovative and highly trained employees.

This skilled workforce is the product of the excellent ba-

sic schooling and practical professional training offered

in Switzerland, which is complemented by the country’s

universities of applied science and its internationally re-

nowned institutes of technology and universities. As a

centre of industry, knowledge and learning, Switzerland

combines practical, technical and academic expertise on

a level that is unparalleled anywhere else in the world.

Many SMEs make generous, long-term investments

in the training and development of talented young em-

ployees. This inspires a high level of loyalty among staff

and prompts an open exchange of knowledge and

ideas, providing them with a vast pool of accumulated

expertise. Employees are encouraged to show initiative

and to act responsibly for the benefit of the company as

a whole. Decisions are reached on a decentralized basis

by the relevant teams wherever possible – with a firm

focus being placed on the matter in hand. In this deci-

sion-making process, content takes precedence over

status and priority is assigned to the best arguments,

not to an individual’s position within the company’s or-

ganizational chart.

Contrary to various clichés, Switzerland’s economy

and society have, for centuries, been closely connected

with the international marketplace and the global com-

munity on a number of levels. The same can be said of

Swiss SMEs. Many of their employees are continuously

broadening their international experience by complet-

ing training courses or working in other countries for

several years. As a result, they grow in confidence and

enjoy their international roles more and more, improv-

ing their language skills and broadening their knowl-

edge of other cultures in the process. Many SMEs evolve

into true export champions as a result of their broad-

based entrepreneurial initiative. For example, Ernst

Basler + Partner is involved in complex Swiss projects

such as AlpTransit and Zurich Airport together with

leading European architectural and engineering firms.

Conversely, it also joins forces with local companies and

experts on initiatives such as a program to further de-

velop waste management in China’s cities, a scheme to

preserve water quality in Lake Ohrid in the border re-

gion between Macedonia, Albania and Greece, and ef-

forts to promote renewable energies in Ecuador.

In addition to their excellent standard of training, re-

sponsible conduct and strong network of international

contacts, Swiss SMEs also share an unwavering commit-

ment to quality and a relentless client focus. According-

ly, they assign much greater priority to long-term per-

formance and continuous development than to the

realization of short-term growth or profit targets. If

SMEs remain true to these principles, this will not only

contribute to the strengthening of their own business

and of the Swiss economy but will also help to underpin

the concept of ’Swissness’ as a hallmark of superlative

quality.

Small and medium-sized enterprises (SMEs) play a pivotal role in the Swiss economy. Which factors have contributed to their strength and international success and to the globally established reputation for Swiss quality?



Bruno Basler __ Civil Engineer

Degree in Engineering from the Swiss

Federal Institute of Technology,

Zurich (ETH), MBA from INSEAD.

Bruno Basler is the second generation

of his family to work in the family

firm Ernst Basler + Partner. He is a

member of the Board of Directors of

Vontobel and two other family-run

businesses.

Zurich Airport: modern architecture combined with functional technology for the benefit of air passengers

Gotthard Base Tunnel: the breakthrough in the 57-kilometre rail tunnel that will enable passengers and goods to be transported through the Alps

Ernst Basler + Partner (www.ebp.ch) is an indepen-

dent engineering, planning and consulting compa-

ny. It has over 300 employees who work in Swit-

zerland and Germany, as well as on international

projects that have been conducted in a total of

60 other countries to date. Ernst Basler + Partner

played a significant role in the two projects illus-

trated above.

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Capitalizing on global trends through active asset management

At the end of 2010, our planet was home to 6.93 billion

people. The UN has estimated that between now and

2015, the global population will increase by 79 million

– annually. This rapid growth shows no signs of abating.

It is already possible to predict the consequences of this

trend, such as a massive rise in consumption.

Ten years from now, the middle classes in China

and India alone will consist of around 700 million peo-

ple – which is equivalent to the total population of Eu-

rope today. These people will be well educated and

will have more financial resources than at present –

and their material needs will be modelled on western

standards.

The question we must ask is therefore: how can we

satisfy the growing demand for consumer goods – and

consequently also for raw materials and basic food-

stuffs? There are three possible solutions: the first is the


The world's population is expected to grow to 9 billion people by 2050. This will lead to a massive rise in consumption and will intensify the pressure on non-renewable resources. The Vontobel funds in the Global Trend product line invest in promising solutions for the future.

The rapid growth in the emerging markets is driving up the demand for raw materials

more efficient exploitation of existing resources; the

second is the more sparing use of these resources; and

the third is the replacement of existing resources

through new solutions.

Fossil fuels such as oil and natural gas are finite re-

sources and the extraction of them entails significant

risks. In addition, it is becoming increasingly expensive

to tap into new fuel reserves. We are still far from hav-

ing exploited the full potential offered by renewable en-

ergies or, for example, the development of engines that

consume less fuel. However, even these efforts do not

represent a credible alternative. Sreejith Banerji points to

a further challenge that is often overlooked in this con-

text: “The UN estimates that the per capita availability

of land for cultivation will decline by around half by

2050 compared to today,” comments the fund manager,

providing further food for thought. The supply of basic


foodstuffs will grow even more limited in the future, in-

creasing the risk of social unrest and political turmoil.

From today's perspective, only the third solution ap-

pears realistic in the long term: it is solely by successfully

substituting finite resources with renewables and alter-

natives that we will be able to maintain the necessary

supplies in the long term. The first positive results in this

area have attracted a high level of interest. “Enzymes

and microorganisms are today replacing oil and gas-

based products in detergents and textiles, for example,”

states Sreejith Banerji. What is more: an enzyme-based

solution for the production of biofuels from agricultural

waste already exists. This breakthrough is infinitely

more important since biofuels were previously produced

using edible plants such as corn, soya or sugar cane – a

process that is difficult to justify from an ethical perspec-

tive in view of food shortages.

For more than a decade, Vontobel Asset Manage-

ment has specialized in identifying the investment op-

portunities resulting from these developments. Expert

analysts evaluate whether companies meet the criteria

Dr. Linda Thöny, EMPA, informs Sreejith Banerji about the latest findings in the field of enzyme research

for future-oriented and responsible business manage-

ment. For example, in the field of Global Change Invest-

ing, experienced portfolio managers look for firms that

manage innovative solutions and technologies more ef-

fectively, facilitate the more efficient extraction of re-

sources, offer solutions to increase income or develop

innovative synthetic substitutes to raw materials that

are becoming depleted in the natural resources sector.

As a multi-boutique asset manager, we offer innova-

tive and transparent investment solutions for private

and institutional clients. Our investment expertise is

based on an active asset management approach. We

are passionately committed to our goal of generating

high performance quality. The numerous independent

awards we have won confirm our success in this area.

“ Enzymes and other microorganisms are today replacing oil and gas-based products”

Sreejith Banerji __ fund manager of the Vontobel Fund –

Global Trend Future Resources

“Our values are what matter”

Dr. Hans Vontobel

If it is true that every crisis is a source of opportunity, then it is worth taking a close look at

the recent financial crisis and currency crisis – whose effects are still being felt – to determine

how we can benefit from them today. I believe that these crises, which had a truly global

impact, offer us a unique opportunity to identify past mistakes and to analyze all the factors

that led to this highly complex situation. I am not so much

interested in the individual details as in the fundamental

issues – the parameters that shape our actions. In this con-

text, I think it is not only helpful but also essential to reflect

on and return to our traditional values. I am referring here

to those values that have always been the hallmarks of

Switzerland: hard work, punctuality, reliability, quality, re-

spect and discretion. They are the core values that have enabled us to compete successfully

in the global marketplace; they are the values that we must strive to uphold in the future.

One could argue that banking is primarily about concrete or tangible values. Many

people therefore believe that clear and binding rules are all that is needed in this business,

while specific ethical values are less relevant or even unimportant. In contrast, I firmly be-

lieve that rules alone are not enough. In today’s banking world, it is vital to have respect-

able, honest professionals with a high level of financial expertise and a good understanding

of human nature who can communicate openly with their clients and business partners and

work with them to build a relationship of trust.

In this era of globally interconnected economies and markets, I find it misguided to be-

lieve that companies can be managed and supervised on the basis of financial data alone.

Clear beliefs and powerful values are what are needed. We are continuously being tempted

to abandon our values and proven virtues such as modesty, moderation and far-sightedness

in order to generate a quick profit. There is always the hope, however, that if good values

are lost, we will find new ones to replace them.

I was recently asked in an interview whether a medium-sized Swiss private bank has a

different set of values to a British or American big bank. My answer was a definite ‘‘yes’’. In

recent years, many big banks have blindly adopted much of the American value system in-

stead of relying on their own proven principles. In challenging periods in particular, it is vital

for each country and its people to return to their values and traditions. This is especially true

in the case of Switzerland. American attitudes and ideas are often much too dominant in

today’s financial and corporate world. I believe that the resulting business philosophies are

not always sustainable due to the excessive focus they place on quarterly and annual results.

I consider it my role to encourage as many people as possible to adopt a long-term, sustain-

able view – including within our own company. But how can a bank like Vontobel ensure

that its employees actively preserve its values and traditions? The answer is simple: by re-


“ In challenging periods in particular, it is vital for each country to return to its values and traditions. This is especially true in the case of Switzerland.”

Dr. Hans Vontobel,

Honorary Chairman

of the Vontobel Group


lentlessly striving to uphold our principles and by learning from our mistakes. At Vontobel,

we instil a sound and sustainable set of values in our people. I believe that our unwavering

belief in our own strengths is part of this.

As we all know, the Swiss financial centre has faced many challenges in the past and

has repeatedly come under intense external pressure. However, this should not cause us to

abandon our liberal principles or to gradually surrender the protection of our clients’ finan-

cial privacy, for example. Today, many people once again view this international pressure as

a threat to our financial centre. I see it differently: this pressure undeniably exists but should

be regarded as an incentive for Switzerland and its banks to boldly address current challeng-

es and to seek new and innovative solutions. Bank Vontobel has always acted according to

this principle and has performed very well over the decades as a result. Our clients value this

greatly. They have confidence in our values-based approach, the success of which is found-

ed on a unique combination of tradition and innovation, responsibility and performance.


SwitzerlandVontobel Holding AGGotthardstrasse 43CH-8022 ZurichTelephone +41 (0)58 283 59 00Telefax +41 (0)58 283 75 00www.vontobel.com

Bank Vontobel AGGotthardstrasse 43CH-8022 ZurichTelephone +41 (0)58 283 71 11Telefax +41 (0)58 283 76 50

Bank Vontobel AGSt. Alban-Anlage 584052 BasleTelephone +41 (0)58 283 21 11Telefax +41 (0)58 283 21 12

Bank Vontobel AGSpitalgasse 40CH-3011 BerneTelephone +41 (0)58 283 22 11Telefax +41 (0)58 283 22 12

Bank Vontobel AGSchweizerhofquai 3aPostfach 2265CH-6002 LucerneTelephone +41 (0)41 249 31 11Telefax +41 (0)41 249 31 50

Banque Vontobel SA Place de l’Université 6CH-1205 GenevaTelephone +41 (0)22 809 90 90Telefax +41 (0)22 809 90 91

Vontobel Fonds Services AGGotthardstrasse 43CH-8022 ZurichTelephone +41 (0)58 283 74 77Telefax +41 (0)58 283 53 05

Vontobel Securities AGGotthardstrasse 43CH-8022 ZurichTelephone +41 (0)58 283 71 11Telefax +41 (0)58 283 76 49

Vontobel Swiss Wealth Advisors AGToedistrasse 17CH-8022 ZurichTelephone +41 (0)44 287 81 11Telefax +41 (0)44 287 81 12

AustriaBank Vontobel Österreich AGRathausplatz 4A-5020 SalzburgTelephone +43 (0)662 8104 0Telefax +43 (0)662 8104 7

Bank Vontobel Österreich AGKärntner Strasse 51A-1010 ViennaTelephone +43 (0)1 513 76 40Telefax +43 (0)1 513 76 402

Vontobel Europe SANiederlassung WienKärntner Strasse 51A-1010 ViennaTelephone +43 (0)1 513 76 40Telefax +43 (0)1 513 76 40 600

GermanyBank Vontobel Europe AG Niederlassung Frankfurt am MainKaiserstrasse 6D-60311 Frankfurt am MainTelephone +49 (0)69 297 208 0Telefax +49 (0)69 297 208 33

New address from 16 May 2011:Bank Vontobel Europe AGNiederlassung Frankfurt am MainWestendDuoBockenheimer Landstrasse 24D-60323 Frankfurt am MainTelephone +49 (0)69 297 208 0Telefax +49 (0)69 297 208 33

Bank Vontobel Europe AGNiederlassung Hamburg SudanhausGrosse Bäckerstrasse 13D-20095 HamburgTelephone +49 (0)40 638 587 0Telefax +49 (0)40 638 587 230

Bank Vontobel Europe AGAuf dem Berlich 1D-50667 Cologne Telephone +49 (0)221 20 30 00Telefax +49 (0)221 20 30 030

Bank Vontobel Europe AGAlter Hof 5D-80331 MunichTelephone +49 (0)89 411 890 0Telefax +49 (0)89 411 890 30

Bank Vontobel Europe AGAsset FinanceMaximillianstrasse 34D-80331 MunichTelephone +49 (0)89 411 890 0Telefax +49 (0)89 411 890 669

Great BritainVontobel Europe SA London BranchThird Floor22 Sackville StreetLondon W1S 3DNTelephone +44 207 255 83 00Telefax +44 207 255 83 01

Hong KongVontobel Asia Pacific Ltd.2301 Jardine House1 Connaught Place, Central, Hong KongTelephone +852 3655 3990Telefax +852 3655 3970

ItalyVontobel Europe SA, Milan BranchPiazza degli Affari, 3I-20123 MilanTelephone +39 02 6367 3411Telefax +39 02 6367 3422

LiechtensteinBank Vontobel (Liechtenstein) AGPflugstrasse 20FL-9490 VaduzTelephone +423 236 41 11Telefax +423 236 41 12

Vontobel Treuhand AGPflugstrasse 20FL-9490 VaduzTelephone +423 236 41 80Telefax +423 236 41 81LuxembourgVontobel Europe SA1, Côte D’EichL-1450 Luxembourg Telephone +352 26 34 74 1Telefax +352 26 34 74 33

Vontobel Fund Advisory SA1, Côte D’EichL-1450 Luxembourg Telephone +352 26 34 74 1Telefax +352 26 34 74 33

Vontobel Management SA1, Côte D’EichL-1450 Luxembourg Telephone +352 26 34 74 40Telefax +352 26 34 74 33

SpainVontobel Europe SA, Sucursal en EspañaPaseo de la Castellana, 40 bis - 6°E-28046 Madrid Telephone +34 91 520 95 34Telefax +34 91 520 95 55

USAVontobel Asset Management, Inc.1540 Broadway, 38 th FloorNew York, NY 10036, USATelephone +1 212 415 70 00Telefax +1 212 415 70 87www.vusa.com

Vontobel Securities Ltd.New York Branch1540 Broadway, 38 th FloorNew York, NY 10036, USATelephone +1 212 792 58 20Telefax +1 212 792 58 [email protected]

U.A.E.Vontobel Financial Products Ltd.Liberty House, Office 913Dubai International Financial CentreP.O. Box 506814Dubai, United Arab EmiratesTelephone +971 (4) 703 85 00Telefax +971 (4) 703 85 01

Vontobel Invest Ltd.Liberty House, Office 913Dubai International Financial CentreP.O. Box 506814Dubai, United Arab EmiratesTelephone +971 (4) 703 85 00Telefax +971 (4) 703 85 01

Where to find us

The Vontobel Portrait 2011 is also available in German, French, Italian, Spanish, Russian and Chinese.

03/11 4000 EN Printed by Linkgroup without impacting the climate.

Vontobel Holding AGGotthardstrasse 43CH-8022 ZurichTelephone +41 (0)58 283 59 00Telefax +41 (0)58 283 75 00www.vontobel.com

Vontobel Portrait 2011 - Swiss made

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