Private Banking & TrustShaping wealth for generations

Wealth Structuring | Investment Management | Banking | Trust

Cover and this page: Christo and Jeanne-Claude, The Umbrellas, Japan and USA, 1984-91.

The artists are known for their large-scale environmental works – often realised through the use of woven fabric.

The Rothschild offi ce in Zurich ishome to a superb art collection,including a large number of works by Christo and Jeanne-Claude.

Photos: Wolfgang Volz © Christo 1991.

For over 200 years, Rothschild’s freedom to offer objective advice and commitment to personal service have combined to build value for our private clients; shaping wealth for generations.

From sandals to sandals in three generations” is a Chinese saying that describes a near-universal experience. One generation makes a great fortune and the next maintains it before the third generation spends it without restraint. In doing so, they risk returning to the poverty of the sandals that their grandparents started out in.

Few families have successfully managed and preserved their wealth over centuries. The Rothschilds are an exception and, as a result, our business is now in its seventh generation of independent family ownership.

This heritage provides us with a unique insight and perspective. Today, our clients benefit from the objective advice that our experience and independence allow us to provide.

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Right: The Rothschild Fabergé Egg is a superlative masterpiece by a master-craftsman. It is one of only 12 eggs created for private clients: a gift from Béatrice Ephrussi to Germaine Halphen on her engagement to Baron Edouard de Rothschild in 1902. © Christie’s 2007.

What we do

Left: A letter written in 1846 by Louis Philippe, King of France, to Baron James de Rothschild. It approves some designs for a ‘magnificent carriage’ to be constructed as the King’s own coach on the new French railway line created by the Rothschilds.© 2008 The Rothschild Archive London.

We offer independent advice to individuals and families from around the world.

Unlike many of our peers, we take a broad view. We are interested in our clients’ overall balance of assets and liabilities, and the complete pattern of their wealth. For example, we often create structures to protect a wide range of assets, including non-financial assets such as family businesses, yachts, art and property.

Investing time is central to our approach. Before making recommendations, we seek to understand as much as possible about each of our client’s circumstances and priorities. This allows us to put forward a coherent financial strategy.

What makes us differentFour guiding principles define the way that we work:

• objective advice • personal commitment • family values • intellectual rigour

These principles shape everything we do. They are central to our ethos and at the heart of our commitment to each of our clients.

Left: Untitled 13 (engravings for Carmen) by Pablo Picasso. © Succession Picasso / DACS London / Goldmark Gallery 2008.

Objective advice

As an independent business, we are free to look at options from our clients’ perspective. Our recommendations are based on our unbiased analysis – of opportunities, risks and of each client’s individual circumstances.

We are free to work with our clients’ existing advisers and investment managers, providing guidance and recommendations on wealth structuring and investment strategy regardless of where the assets are managed.

Left: Imperfect 633/8" x 887/8" – detail (woodcut, screenprint, collage, 1988) by Roy Lichtenstein © 2008, ProLitteris, Zurich.Courtesy of The Lilja Art Fund Foundation.

We have no obligation to sell any products and have few of the conflicts of interest that trouble so many of our competitors.Baron David de Rothschild Chairman of the Rothschild group

Personal commitment

The real value of Rothschild lies in our service.

Unlike most banks, our hierarchy has very few levels. We are part of the global Rothschild group, yet we maintain short lines of communication and avoid rigid bureaucracy. As a consequence, our clients receive the personal time and attention they deserve, from senior specialists in a range of fields.

Our emphasis is on care and attention to detail. We seek to build relationships that last for generations.

Right: Sculpture with pencils (pencils and resin on plexiglass, 1968) by Pierre Fernandez Arman© 2008, ProLitteris, Zurich.Courtesy of The Lilja Art Fund Foundation.

Right: L’atelier de Paris – detail (gouache, 1969) by Marc Chagall © 2008, ProLitteris, Zurich.Courtesy of The Lilja Art Fund Foundation.

Family values

The Rothschild family motto translates as ‘unity, integrity and entrepreneurship.’ Over the centuries, we have remained true to this approach, even as the nature of our business has changed.

As a family business, we understand the sensitivities that surround family governance and planning for succession. We know the key issues that need to be addressed and work alongside our clients to plan for the future.

We are like the mechanism of a watch: each part is essential.Salomon von Rothschild (1774-1855) to his brothers

Intellectual rigour

Our clients have access to the knowledge and experience of the entire Rothschild group. This includes senior investment bankers advising on mergers and acquisitions, international trust lawyers and some of the world’s most sought-after investment specialists.

Meticulous attention to detail is a Rothschild hallmark. We don’t cut corners or serve prefabricated solutions.

Left: Flying Machines – detail (pen and ink on paper) by Leonardo da Vinci.© Bibliotheque de l’Institut de France, Paris, France / Alinari / The Bridgeman Art Library.

We offer a comprehensive range of services for private clients. This includes guidance and recommendations on tax, inheritance and succession planning, as well as on broader issues of family governance.

When structuring our clients’ assets, we use a wide range of vehicles – including trusts, foundations, insurance and corporate vehicles – and specialise in advising international clients whose affairs span a range of domiciles and jurisdictions.

Our investment services cover both traditional and alternative asset classes, from equities, bonds and cash to commodities, hedge funds, commercial property and private equity.

We focus on constructing diversified asset allocations for our clients. Their portfolios typically include a blend of direct holdings, active and passive funds, structured products and derivatives.

Left: Walking Past Two Chairs – detail (lithograph and screenprint) by David Hockney © 2008, David Hockney. Courtesy of The Lilja Art Fund Foundation.

Our services

Below: Wrapped Walk Ways, Project for Jacob Loose Park, Kansas City, Missouri, by Christo. Collage 1978 in two parts: pencil, fabric, pastel, wax crayon, charcoal, photograph and technical data. © 1978 Christo. Courtesy of The Lilja Art Fund Foundation.

Wealth structuring

To survive and grow over time, assets and estates need protection – from political upheaval, changing legislation or even irresponsible heirs.

Our tax and wealth structuring specialists are adept at designing and establishing tax effi cient structures. Many of these are international and require complex, cross-border planning.

On an ongoing basis, we actively monitor and review each of our client’s affairs to ensure their structures remain relevant and effective.

It takes a great deal of boldness and a great deal of caution to make a great fortune; and when you have got it, it requires ten times as much wit to keep it.Nathan Mayer Rothschild (1777-1836)

Investment management

No two people have exactly the same approach to investing.

Some clients are happy to ride out volatile markets; others emphasise stability and dependable returns. Some clients want to be actively involved in daily investment decisions; others prefer to delegate decision making to our investment professionals.

Before suggesting an investment strategy, we always begin with a detailed analysis of each client’s personal circumstances. This includes their preferences and constraints, risk tolerance and return objectives, time horizon and liquidity needs.

Our independence is central to our investment approach. We do not manufacture and sell our own fi nancial products but instead objectively source and select leading products for our clients.

Our dedicated analysts look at investment options from our clients’ perspective, searching for fair pricing, attractive terms and the potential to produce strong risk adjusted returns.

Above: Surrounded Islands, Project for Biscayne Bay, Greater Miami, Florida, by Christo. Collage 1981 in two parts: pencil, fabric, pastel, charcoal, photograph and map. © Christo 1981. Courtesy of The Lilja Art Fund Foundation.

Banking

Our discreet banking service offers access to cash, credit and custody from centres in Switzerland and the Channel Islands.

We provide competitive cash management facilities, deposit accounts, debit and credit cards, and foreign exchange on margin. We can also lend against diversifi ed investment portfolios as well as selected single funds and securities.

Right: Running Fence, Project for Sonoma and Marin Counties, California, by Christo. Drawing 1976 in two parts: pencil, charcoal, pastel, photograph, tape and technical data. © Christo 1976. Courtesy of The Lilja Art Fund Foundation.

Trust

International tax laws and regulations are constantly evolving. Our teams of trust experts ensure that our clients’ financial arrangements keep pace with the changing environment. They can also relieve the burden of managing assets, by taking on the responsibilities of monitoring and administration.

Changes in personal circumstances are as important as changes in the wider world. As our clients’ families, lifestyles and priorities alter over time, we work with them to review and revise the way their assets are managed.

Left: In 1810, Mayer Amschel Rothschild drew up a partnership agreement with three of his sons, which was the basis for the future pattern of Rothschild business.© 2008 The Rothschild Archive London.

Lack of order will turn a millionaire into a beggar.Mayer Amschel Rothschild (1744-1812)

Shaping wealth for generations

The Rothschild family has a long history. But our story is one of reinvention, as well as tradition.

Shaping wealth for generations involves a different way of thinking. It begins with an investment of time, as we seek to gain a complete understanding of each client’s needs and objectives. It involves confidence and experience – drawing on our heritage, and looking to the long term.

It also speaks of our commitment – to providing an exceptional service, to building lasting relationships, and to intelligent intervention that will continue over time.

This page: Untitled 1958 by Alexander Calder. © Private Collection. Photo: © Christie's Images / The Bridgeman Art Library. © Calder Foundation, New York / DACS London 2008.

Left: The Rothschild coat of arms, as first granted in 1822 by the Habsburg College of Heralds, incorporating the five arrows, red shield and motto – unique to the Rothschild family.© 2008 The Rothschild Archive London.

The Rothschild story

The Rothschild family history is intrinsically linked to our heritage as a firm. Over 200 years, the Rothschild name has become synonymous with quality and excellence in finance, wine, architecture, science and the arts.

From modest beginnings, the five sons of Mayer Amschel Rothschild founded banking houses in Frankfurt, London, Paris, Vienna and Naples. They achieved renown as the most important – and most successful – bankers in the world.

Our clients have included royalty and other influential people of their day: Queen Victoria, Gioacchino Rossini, Louis Philippe, Johann Strauss senior, Dame Nellie Melba and Randolph Churchill, to name a few.

/ /noun. RothschildMayer Amschel Rothschild (1744-1812) and his descendants, proprietors of an international banking company. An extremely wealthy person; a millionaire. Oxford English Dictionary

Queen Victoria by Thomas George Housman.© The Trustees of the Weston Park Foundation, UK / The Bridgeman Art Library.

Portrait of Gioacchino Rossini, Italian composer.© Haags Gemeentemuseum, The Hague, Netherlands / The Bridgeman Art Library.

Dame Nellie Melba as Rosina in ‘The Barber of Seville’. © Museum of London, UK / The Bridgeman Art Library.

A brief history

Left: Detail from a specimen bond for a Rothschild loan to Brazil, 1889.© 2008 The Rothschild Archive London.

1760-1820Mayer Amschel Rothschild begins dealing in coins and bills in Frankfurt. Within a decade, he is appointed Court Agent to Wilhelm of Hesse-Hanau.

Mayer’s sons open new banks in London, Paris, Vienna and Naples.

1820-1850The Rothschilds finance the railways in France and Austria. In the UK, Rothschild acts as bullion broker to the Bank of England, and begins to import newly discovered gold from California and Australia.

1850-1890The Rothschilds build great houses across Europe, acquire Château Lafite and Château Mouton, and begin building their art collection.

In 1875, Lionel de Rothschild secretly finances the British government’s stake in the Suez Canal. By 1890, the Rothschilds have moved into oil and mining exploration, and financed the establishment of De Beers.

1890-1945The Rothschilds’ focus shifts to commercial enterprises, like the London Underground and Woolworths. In 1919, Rothschild becomes the first chair for the daily fixing of the world gold price.

A brief history Rothschild and philanthropy

1945-todayBoth the British and the French branches emerge from the Second World War with new generations of the family at the helm. Historic partnership ties between the two branches are revitalised, leading to a complete merger in 2003. An enduring entrepreneurial spirit sees the development of an internationalnetwork of branch offices and the business survive nationalisation in France.

Rothschild creates the first fund of hedge funds in 1969, and, in the 1980s, strengthens its position as a world leader in investment banking. Today, Rothschild has over 4000 private clients in 90 countries and is a global private bank.

Wherever they have settled, the Rothschild family have sought to play their part in the life of their community. In this, they are building on traditions of social concern and charity instilled in his children by Mayer Amschel Rothschild, the founder of the Rothschild family. Today, a wide range of Rothschild foundations operate throughout Europe and in Israel, in fields as diverse as medical science, housing and education.

The Rothschild giraffe is a distinctive and endangered subspecies found in Kenya and Uganda. Walter Rothschild (1868-1937) had a lifelong interest in zoology. Thanks to him, many species now bear the Rothschild name.© 2008 / Jürgen & Christine Sohns / FLPA.

Fondation Rothschild, created in 1904, undertook the construction and management of social housing in central Paris to cater for the needs of the working population. © Nicolas Janberg www.structurae.de

In 1884, Nathaniel de Rothschild became the sole major investor in a social housing project for the East End of London – known as the Four Per Cent Industrial Dwellings Company, a reference to the planned profit margin. © Philip Walker.

Yad Hanadiv is the Rothschild family’s foundation in Israel, which has supported many cultural initiatives, including the creation of the Supreme Court building in Jerusalem.© 2008 The Rothschild Archive London.

Rothschild and wine

I do hope you like the wine. It’s home-made.Liliane de Rothschild, to dinner guests at Lafite

© 2008 Domaines Barons de Rothschild (Lafite).

Château Lafite Rothschild, under the leadership of Baron Eric de Rothschild, consistently produces some of the world’s finest red wines. Each year, Baron Eric commissions a different fine art photographer to capture something of the vineyard. Past photographers include Irving Penn, Robert Doisneau and Richard Avedon; the photograph on the right was taken by Antonin Borgeaud.

A note on the images

The Rothschild office in Zurich is home to a superb art collection. There are over 200 works of art on display and in the archives, including pieces by Pop Artists such as Lichtenstein and Warhol, and a large Christo collection.

Some of the images featured in this brochure are from this collection. Each of them reflects our theme of ‘shaping wealth for generations’.

Welcome

Rothschild has served private clients for over 200 years. Today, I am proud to represent my family in leading this business.

While much has changed, our objective remains the same: to protect and enhance our clients’ legacies for generations to come.

I hope this brochure has given you a good introduction to our firm. I would like to thank you for your interest in Rothschild and look forward to welcoming you as a client.

Baron Eric de RothschildChairman, Rothschild Private Banking & Trust

Nucleus 2008

This Publication is intended for information purposes only and does not constitute an offer or an invitation by, or on behalf of, Rothschild Private Banking & Trust to buy or sell any security, financial instrument or to participate in any particular trading strategy or banking product in any jurisdiction. This Publication may only be distributed in countries where its distribution is legally permitted and is not directed to any person in any jurisdiction where (by reason of that person’s nationality, residence or otherwise) such publications are prohibited. In particular this Publication is not to be made available to US persons and is not to be circulated within the USA.

This Publication is approved for circulation in the United Kingdom by Rothschild Private Management Limited, authorised and regulated by the Financial Services Authority. None of the Rothschild Group companies outside the UK, nor the trust companies, are authorised under the UK Financial Services and Markets Act 2000 and, accordingly, the protection provided by the UK regulatory system for retail customers does not apply, nor is compensation under the UK Financial Service Compensation Scheme available.

This Publication cannot be reproduced totally or in extracts without the prior written consent of Rothschild Private Banking & Trust.

For further information about Rothschild, including a complete list of services, offices and contact details, please visit our website at www.rothschild.com/privatebankingandtrust