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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
3Vontobel Portrait 2011
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.
4 Vontobel Portrait 2011
Dr. Urs Widmer, Chairman of the Board of Directors
5Vontobel Portrait 2011
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
6 Vontobel Portrait 2011
7Vontobel Portrait 2011
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
8 Vontobel Portrait 2011
“ 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.
9 Vontobel Portrait 2011
“ 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.”
10 Vontobel Portrait 2011
11Vontobel Portrait 2011
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.”
Jola
nda
Flub
ache
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gs
“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
12 Vontobel Portrait 2011
13Vontobel Portrait 2011
“...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
14 Vontobel Portrait 2011
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
15Vontobel Portrait 2011
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
16 Vontobel Portrait 2011
“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-
17Vontobel Portrait 2011
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
18 Vontobel Portrait 2011
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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’’
19Vontobel Portrait 2011
20 Vontobel Portrait 2011
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.
21Vontobel Portrait 2011
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
22 Vontobel Portrait 2011
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
23Vontobel Portrait 2011
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
24 Vontobel Portrait 2011
Shared qualities and values define Vontobel’s partnerships in the area of sponsorship.
Eliz
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25Vontobel Portrait 2011
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
And
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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?
26 Vontobel Portrait 2011
27Vontobel Portrait 2011
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
28 Vontobel Portrait 2011
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
29Vontobel Portrait 2011
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-
30 Vontobel Portrait 2011
“ 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
31Vontobel Portrait 2011
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.
32 Vontobel Portrait 2011
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