standing the test of time company longevity in the spotlight visionary thinkers alejandro agag and

84 Pages·2017·12.96 MB·English

(cid:31)
ISSUE(cid:31)#2—(cid:31)MAY 2015
WÜRZBURG
KIEL
HAMBURG
MANNHEIM
DUESSELDORF STUTTGART
AMSTERDAM FRANKFURT
KREUZLINGEN
LUXEMBOURG
MUNICH
MOSCOW
DUBLIN
BASLE LONDON
PARIS GUERNSEY
VIENNA
ST. GALLEN
ZURICH
TOKYO
SHANGHAI
NASSAU
HONG KONG
LUGANO
GENEVA ISTANBUL
MADRID
BERNE
LAUSANNE SINGAPORE
ABU DHABI
PANAMA CITY
DUBAI JAKARTA
MANAMA
LIMA MONACO LUCERNE BEIRUT
TEL AVIV
MILAN
SION CAIRO
SANTIAGO DE CHILE CRANS–MONTANA
MONTEVIDEO
SÃO PAULO
VERBIER
BELO HORIZONTE
RIO DE JANEIRO ROME
TURIN ZUG
ST. MORITZ
125 YEARS OF JULIUS BAER VISIONARY THINKERS STANDING THE TEST OF TIME
A GLIMPSE INTO THE PAST ALEJANDRO AGAG COMPANY LONGEVITY
WITH EYES ON THE FUTURE AND JEAN-CLAUDE BIVER IN THE SPOTLIGHT
WE ARE ONE PART HISTORY
AND ONE PART FUTURE.
WHAT CAN WE DO FOR
YOUR TOMORROW TODAY?
>> Discover our approach at juliusbaer.com/visionary-thinking
Julius Baer is the leading Swiss private banking group and present in some 50 locations worldwide. From Dubai, Frankfurt, Geneva,
Guernsey, Hong Kong, London, Lugano, Monaco, Montevideo, Moscow, Nassau, Singapore to Zurich (head office).
THE REAL STORY IS STILL
AHEAD OF US
Welcome to the second edition of ‘Vision’. In this special issue, we are delighted to
focus on Bank Julius Baer’s 125-year anniversary.
We are proud to have reached this noble age, and look forward to a long and suc-
cessful future. We invite you on a journey back in time with us as we remember
the Bank’s humble beginnings as a bureau de change on Zurich’s Bahnhofstrasse,
followed by the rapid growth of the business in terms of size and global presence
both in decades of war-torn uncertainty and great prosperity, as well as the Baer
family’s foresight to adapt in ways that enabled Julius Baer to become the inter-
national reference in private banking.
Julius Baer’s future is anchored in the past, evident in the present and driven by
the strategy it has chosen going forward. Over the past two decades, we have
gradually transformed the Group from a mainly Switzerland-based, medium-sized
Boris F.J. Collardi, universal bank (including asset management and institutional brokerage) to the
Chief Executive Officer leading Swiss private banking group it is today, with offices in some 50 countries.
This far-reaching corporate development is a reflection of our unwavering entre-
preneurial management culture. Yet it has never prevented us from our ultimate
focus and passion: catering for our clients’ needs and providing them with expert
advice and solutions.
Successfully staying in business for 125 years is not something that can be taken
for granted. It is an achievement borne by many shoulders, steered by the fore-
sight of a few and driven by one goal. In the case of Julius Baer, our continued
aspiration is to be the trusted partner of choice, fusing our client focus and strong
financial standing into a client experience second to none. Or, as Julius Baer, the
founder and namesake of our company, put it: “If contact between people is based
on trust and absolute integrity, then it is of benefit for both sides.”
I hope you enjoy learning about our past, as much as sharing our future with us.
Yours sincerely,
Boris F.J. Collardi
Chief Executive Officer
3 EDITORIAL
Contents
28
company longevity:
standing the test of time
125 yeArs oF JulIus BAer
Why do some companies thrive for generations, while
6 others go into decline and eventually disappear?

Corporate longevity experts explain the secrets to
Interview with Daniel J. sauter
long-term success.
and Boris F.J. collardi
32
50 years of investing in
the community
34
–
Art For All
the Julius Baer Art collection
the Chairman and the Ceo of Julius Baer meet to reflect
on the milestones of the Bank’s 125-year history and to
explain their plans to ensure the company’s success for
future generations.
12
A hIstory oF JulIus BAer
1890 – 2015
the Baer family is one of switzerland’s most prominent
banking dynasties. their story began with company founder,
Julius Baer in 1890 and continued over three generations
thereafter. What they all had in common is a flair for making
the right decisions at the right time.
26 42
the transformational decade lutz and Guggisberg
2005 – 2015 the swiss artistic duo on their recent exhibit, their careers to
date and the future paths they wish to take.
contents 4
VIsIonAry thInKers InVestMent trenDs
46 60
AleJAnDro AGAG: Where are we headed?
formula for  the future All financial decisions should be based on fundamental
investment principles whatever the economic forecast.
62
europe and Asia at
a crossroads
What’s in store for europe and Asia? our experts shed light
on the developments moving the regions.
our BusIness
52 68
JulIen QuentIn: unveiling Julius Baer’s
a pianist moving into new new ad campaign
musical territory
Launched in late 2014, our new campaign addresses some
of the biggest challenges facing the world today.
72
Passing the baton
54
JeAn-clAuDe BIVer:
legendary entrepreneur
For continuity of service, our senior relationship managers
and die-hard hippie
pass on their knowledge to younger employees.
76 Julius Baer at a glance
78 our products and services
80 Disclaimer 
82 Masthead
5 contents

Looking ahead:
danieL J. Sauter and
BoriS F. J. CoLLardi
Interview: Michèle Bodmer
The Chairman and the Chief Executive Officer of Julius Baer Group are not in the habit
of reliving past milestones. Daniel J. Sauter and Boris F.J. Collardi instead spend their time
looking to the future in anticipation of the challenges ahead. As 2015 marks the 125th anni-
versary of the Bank, they make an exception and reflect on the most significant events of
the company’s history and, true to form, also discuss what they are doing to ensure its suc-
cess for future generations.
Mr Sauter, when you joined Julius Baer, the Bank was caused by the drop of the Eur/CHF peg by the Swiss
coming to the end of its ‘family era’ and transitioning into National Bank. The shock lasted for a few minutes and then
a new period. What did this experience mean to you? the team got on with it. I am proud that we were the first
SAuTEr: When I joined the Bank in 2007 as a Member of bank to present mitigating measures to safeguard our profit-
the Board of Directors, raymond Baer was still the company’s ability. As Boris said, we are a nimble-footed organisation.
chairman. Then, in 2012, there was a seamless handover from
raymond to me. Back in 2007, the economy was changing and Looking back, what would you say are some of the most
so was the wealth management business. raymond, together important turning points in the company’s history?
with the Board and management, successfully initiated the SAuTEr: I think the big change was initiated when the
Bank’s transition into the new environment and led the organ- family decided to list the company on the Zurich stock ex-
isation through the financial crisis. But, even in this modern change in 1980. It was a first courageous step to prepare the
and changed world, we subscribe to the same values and prin- company for its sustainable future.
ciples as the Baer family. Then, in 2005, in a bold move, the company acquired
the SBC Wealth Management banks, which doubled its
Mr Collardi, what did it mean to experience the end of the private banking assets. At the beginning of that year, the
family era and be part of the new one? family relinquished control and introduced one voting share
COllArDI: That moment was pivotal. The family was class, setting the Bank on the path it is still on today. This
laying the groundwork for the coming transition phase, and move, in my opinion, was a path-breaking – and notably gen-
I feel privileged to have seen it first-hand. It enabled me to erous – step by the family to create the platform for the Bank
bring the family’s values into the new era and to preserve, to grow internationally. As a result, we are less exposed to
transform and transport them into the new company. problems which others have encountered being present only
in the Swiss market.
What part of the company’s culture is still the same and
what has changed? COllArDI: I agree with Daniel. In my personal experi-
COllArDI: The foundation of our culture is still strong. ence, 2005 was the biggest turning point. That year marked
That is the spirit in which we put the client at the centre, our the transition from the Baer Family Era into the Julius Baer
strong ethical values, being conservative and looking to the Era – a significant milestone. I often try to put myself in the
long-term good of the business, while simultaneously having shoes of the family. ultimately, I believe they must have felt
the courage to innovate. I believe the culture hasn’t changed, as though they had surrendered the management of the
however, the environment in which we work has. Based on company to somebody else. That is an act of courage, and
this, we have had to adapt faster than ever before, and that it was the right thing to do at the right moment. However,
set of values of the past gives us the ability to do so, although back then, many people questioned the family’s decision
we may be applying them differently. because there was no guarantee that Julius Baer would
One of the biggest differences between the past and the become this successful.
present is that the Group has become much more inter- I consider 2009 another big milestone. Not because I
national. This is neither positive nor negative, but it does became CEO at that time, but because we reconfirmed our
mean that, compared with the past, Julius Baer has become strategy of pure private banking, and as a result acted very
larger and more complex to manage simply due to the fact consequently. Not many people would have agreed at the
that we are operating in many regions. This also presents time that spinning off our asset management business would
more opportunities for us to capture. Julius Baer has also be such a key move, but again, it was the right choice at the
become faster and more flexible in adapting to change. We right time.
try to retain the nimbleness of a smaller business to keep up And, lastly, 2012 was also a tremendous breakthrough.
with the current ever-changing regulations. This was when we decided to acquire Merrill lynch’s Inter-
national Wealth Management business (outside the uS),
SAuTEr: Although the Group has grown significantly which was again an act of courage for a company of our size.
over the past few years, we are still guided by our values of
care, passion and excellence. They are in the Bank’s DNA. This year, Julius Baer is celebrating its 125th anniversary.
I can easily identify with them and, of course, they substan- What are the benefits of having a long history, and are
tially contribute to the entrepreneurial spirit of this organisa- there any drawbacks?
tion, which I have seen time and again overcome any obs- SAuTEr: Tradition is a wonderful thing when it evolves
tacle in front of it with passion and ease. and adapts to the market and to clients’ desires and expect-
ations. Adapting a business model is a way of ensuring lon-
For example? gevity and strengthening brand value. The only drawback of
SAuTEr: There are many, but the most recent example tradition I can see is if a company is unwilling or unable to
is how swiftly the organisation has coped with the challenges manage the change.
125 YEArS OF JulIuS BAEr 8
COllArDI: That is the only drawback, although it’s one
that is within our control to manage. Sometimes people tend
to live in the glories of the past rather than in the challenges
of the future. I spoke about this issue just recently when
someone told me: “You did very well last year as a Group.” “ Tradition is a wonderful thing when
I appreciate the sentiment behind his statement, but told it evolves and adapts to the market and
him: “As a company, we do not spend time talking about the
to clients’ desires and expectations.
past. We need to look into the future and the challenges
ahead. We are proud about what we did, but what lies ahead Adapting a business model is a way of
is what is important.” ensuring longevity and strengthening
brand value.”
What do you believe are the secrets to Julius Baer’s suc-
cess and longevity?
Daniel J. Sauter
SAuTEr: What is the secret to our success? Entrepre-
neurship, leadership and the people working for our com-
pany. leadership means selecting the right individuals and
giving them clear guidance, while providing them with the
freedom to do their jobs.
We have a fantastic reputation as an employer of choice,
and I believe that is because we provide for the maximum
of entrepreneurial space within a set corporate framework.
People therefore aspire to work for us, and we are in the for-
tunate position of being able to select the best talent.
COllArDI: It is true that Julius Baer has always man-
aged to attract good people. If you have good people and a
longer-term horizon, things generally work out in your favour
over time and you can make courageous decisions.
Another aspect is innovation. The company has always
been innovative. The family was courageous in making the
9 125 YEArS OF JulIuS BAEr
“ I see myself as the guardian of the com- will continue to be a successful organisation and can grow
pany’s resources and values, who prepares further. But we must be mindful of what we do and how we
do it. But it’s simple: we must always have the clients’ interest
it to be handed over to the next person,
at the forefront of everything we do and be compliant. Then
whenever that might be. My objective can the sky is the limit.
be described very simply: the day I hand
How important is Swissness to our brand?
over this company to my successor, he
SAuTEr: It is very important. Switzerland is known for
or she should be able to say this is a much its reliability, precision and quality. And that is what we de-
better organisation than it was when I liver to our clients day in and day out. It is a key component
of our success. The country’s solid reputation across the
took over.”
board applies not only to the financial services industry, but
to many other industries as well. This success is also owed to
Boris F.J. Collardi
the country’s openness and ability to attract the best talents,
regardless of nationality.
right decisions before its competitors. We’ve tried to con-
tinue this. At the same time, the family was also conserva- COllArDI: Julius Baer is Swiss and proud of it. How-
tive, knowing that there is no short-term gain when you run a ever, today it is operating in many countries and cultures, so
company. You cannot just speculate on something and hope it adapts. It can do this because being Swiss also means be-
it will be the right choice. This is still our stance today. ing multicultural, open, conservative, innovative and provid-
ing excellence.
As you mentioned, it is not sufficient for a manager to Swissness will continue to be an important driver: that’s
only look at what he is doing at the moment, but also at who we are. But other aspects such as the high level of ser-
how what he is doing will affect the company many years vice, the way the firm is run, the brand, the products you can
down the line. Mr Collardi, how do you do that? access, and the performance are, in my opinion, equally im-
COllArDI: I do not see myself as a manager who allo- portant. It is not enough to compete only on the fact that we
cates resources and makes sure that the execution is flawless. are Swiss.
rather, I see myself as the guardian of the company’s re-
sources and values, who prepares it to be handed over to the A Swiss value that is dear to your heart, Mr Sauter, is
next person, whenever that might be. My objective can be social and political engagement. Why is that?
described very simply: the day I hand over this company to SAuTEr: Switzerland’s strengths are built on a couple of
my successor, he or she should be able to say this is a much pillars. One is the ‘militia system’, where citizens support the
better organisation than it was when I took over. That is my community by assuming public office alongside their day job
goal. Because I have this mindset, my decision-making hori- or by volunteering for the community in which they live.
zon is not defined. The most important thing about making Without these volunteers, the country would not be what
any decision is to find the right timing. it is today. But over the past 20 to 30 years this system has
Decisions made in the present are often for the long- been eroded, as many people, myself included, have put their
term benefit of the company, and although you are making personal career ambitions before community engagement.
the right decision, it will only be proven right five years down One reason for this is that there wasn’t sufficient support
the line. This is something that is very difficult to exercise from employers.
when you run a listed company, because, in addition to look- The one thing we as an organisation can do is to say to all
ing far into the horizon, you must constantly demonstrate of our employees: “If you would like to engage in politics or
that you are always doing better in the short term. contribute to society, Julius Baer will value your commitment
If you can do both, which I think we are doing, you are not and support you.” In the long term, this may lead to people
making short-term decisions for the benefit of short-term from our industry representing our interests. I think that is
profit. You are making decisions for the long-term value of a wonderful way of closing the often bemoaned about gap
the company. If we continue to do that properly, we’ll see the between business and politics.
firm performing.
COllArDI: We have a role as a company in developing
As the company grows, do you believe the credo ‘big the agenda. This is something of a self-fulfilling prophecy.
enough to matter, yet small enough to care’ can continue The financial industry cannot prosper without having the
to be maintained? right legal framework. Politics cannot fix the regulatory
SAuTEr: Yes, I do. Again, this is accomplished with framework without being involved in the industry’s chal-
good leadership and by giving our people responsibility. If lenges. At the end of the day, the population are a function
we succeed in maintaining a strong leadership culture, we of what policies are being developed. People vote. Politicians
125 YEArS OF JulIuS BAEr 10