SOCIETE GENERALE PRIVATE BANKING HABROS€¦ · At a time of banking union, Societe Generale Private Banking, with its renovated platform, offers the best of two worlds: the strength

S P R I N G / S U M M E R 2 0 16 – N ° 9

J a m e s W e l l i n g – C h o r e o g r a p h , 2 0 14 - 2 0 1 5 , I n k j e t p r i n t , 1 6 0 x 1 0 7c m . N e w a c q u i s i t i o n

02ECONOMIC OUTLOOK

OIL, A DIFFERENT ENVIRONMENT

04EXPERTISE

HEDGE FUNDSA TIME OF RENEWAL

06PORTRAIT

IGNACE VAN DOORSELAERE

CEO, VAN DE VELDE

SOCIETE GENERALE PRIVATE BANKING HAMBROS

02ECONOMIC OUTLOOK

OIL, A DIFFERENT ENVIRONMENT

04EXPERTISE

HEDGE FUNDS A TIME OF RENEWAL

06PORTRAIT


CEO, VAN DE VELDE

08PRIVATE BANKING

OUR REGIONAL EXPANSION

WE ARE PROUD SPONSOR OF THE V&A’S MAJOR EXHIBITION BOTTICELLI REIMAGINEDMARCH 5 – JULY 3, 2016 VICTORIA AND ALBERT MUSEUM, LONDON

SOCIETEGENERALE.CO.UK

Societe Generale is a French credit institution (Bank) authorised and supervised by the European Central Bank (ECB) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR) (the French Prudential Control and Resolution Authority) and regulated by the Autorité des marchés financiers (the French financial markets regulator) (AMF). Societe Generale, London Branch is authorised by the ECB, the ACPR and the Prudential Regulation Authority (PRA) and subject to limited regulation by the Financial Conduct Authority (FCA) and the PRA. Details about the extent of our authorisation, supervision and regulation by the above mentioned authorities are available from us on request. FFGROUP

S PR ING/SUM MER 2016 I N°9 I L A LE T TRE I 01S PR ING/SUM MER 2016 I N°9 I L A LE T TRE I 01

Discover the digital version of La Lettre for your computer, smartphone or tablet:privatebanking.societegenerale.com

A RENOVATED EUROPEAN ORGANISATION

The transformation of private banks is gaining pace under the impulse

of regulatory changes, the revolution in information technologies and changes

in behaviour. These upheavals are often presented as constraints, but we see

them as an excellent opportunity to review our strategy and our organisation,

to make them more efficient and offer a better quality of service.

For three years we have been significantly strengthening our Western European

platform by recruiting over 30% more private bankers, wealth planners and

investment advisors. This growth is particularly strong in France, where we

launched our “New Private Bank” at the beginning of 2014, and in the United

Kingdom (the acquisition of Kleinwort Benson’s private banking activities are

underway, subject to regulatory approvals, as this document goes to print).

Our growth is also visible in the modernisation of our tools and the renovation

of our premises: in London and Geneva, for instance, the design of our new

offices demonstrates our desire to be faithful to our heritage as well as

resolutely forward-looking.

We are extending this growth momentum to Central Europe and North Africa

by setting up innovative partnerships with Societe Generale group’s

international network. We are thus able to offer private banking services in

the Czech Republic, Croatia and Morocco. Similar initiatives are being

considered in a number of other countries, which should lead to new openings

in the next few years.

Few private banks can boast such a comprehensive and integrated European

organisation. At a time of banking union, Societe Generale Private Banking,

with its renovated platform, offers the best of two worlds: the strength

of Societe Generale group and the foothold of a local bank.

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Legal Representative Frédéric Oudéa,Chief Executive Officer

Publication manager Nicolas Cagi NicolauHead of Commercial and MarketingSociete Generale Private Banking

Design Studio Graphique Societe Generale

Production/distribution SG publishing services

Publication date and legal depositApril 2016

Publication distributed free of charge

Copyright Societe Generale group 2016. All rights reserved.

JEAN-FRANÇOIS MAZAUDHEAD OF SOCIETE GENERALE PRIVATE BANKING

Discover the digital version of La Lettre for your computer, smartphone or tablet: privatebanking.societegenerale.com/hambros

ERIC BARNETT CHIEF EXECUTIVE OFFICER


Welcome to the Spring issue of La Lettre.

The transformation of private banks is gaining pace under the impulse of regulatory changes, the revolution in information technologies and changes in behaviour. These upheavals are often presented as constraints, but we see them as an excellent opportunity to review our strategy and our organisation, to make them more efficient and offer a better quality of service.

For three years we have been significantly strengthening our Western European platform by recruiting over 30% more private bankers, wealth planners and investment advisors. This growth is particularly strong in France, where we launched our “New Private Bank” at the beginning of 2014, but also in the United Kingdom.

In March we signed the purchase agreement to acquire 100% of Kleinwort Benson in the UK and the Channel Islands. Subject to regulatory approvals, Kleinwort Benson will be acquired and eventually combined with Societe Generale Private Banking Hambros (SGPB Hambros), the Group’s private banking business in the UK and Channel Islands, to create one of the leading private banks in the UK market. This acquisition will bring together two of the most recognised names in private banking, with shared values and a shared heritage in the UK and Channel Islands established through their deep-rooted history here. It will enable us to leverage on the expertise and strengths of the teams from each business to better serve our clients through the creation of a distinctive industry leader in wealth management.

Our growth is also visible in the modernisation of our tools and the renovation of our premises: in London and Geneva, for instance, the design of our new offices demonstrates our desire to be faithful to our heritage as well as being resolutely forward-looking.

We are extending this growth momentum to Central Europe and North Africa by setting up innovative partnerships with Societe Generale group’s international network. We are thus able to offer private banking services in the Czech Republic, Croatia and Morocco. Similar initiatives are being considered in a number of other countries, which should lead to new openings in the next few years.

Few private banks have such a comprehensive and integrated European organisation. At a time of banking union, Societe Generale Private Banking, with its renovated platform, offers the best of two worlds: the strength of Societe Generale group and the foothold of a local bank.

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WE ARE PROUD SPONSOR OF THE V&A’S MAJOR EXHIBITION BOTTICELLI REIMAGINEDMARCH 5 – JULY 3, 2016 VICTORIA AND ALBERT MUSEUM, LONDON

SOCIETEGENERALE.CO.UK

Societe Generale is a French credit institution (Bank) authorised and supervised by the European Central Bank (ECB) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR) (the French Prudential Control and Resolution Authority) and regulated by the Autorité des marchés financiers (the French financial markets regulator) (AMF). Societe Generale, London Branch is authorised by the ECB, the ACPR and the Prudential Regulation Authority (PRA) and subject to limited regulation by the Financial Conduct Authority (FCA) and the PRA. Details about the extent of our authorisation, supervision and regulation by the above mentioned authorities are available from us on request. FFGROUP

02 I L A LE T TRE I N°9 I S PR ING/SUM MER 201602 I L A LE T TRE I N°9 I S PR ING/SUM MER 2016

ECONOMIC OUTLOOK I OIL©

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A BALANCE MODIFIED BY NEW SOURCES OF SUPPLY

Supply shockAfter the shale gas revolution, since 2010 the United States has been through the shale oil revolution. Since this date, US production has jumped from 5 million1 barrels a day to more than 9 million, thanks to the drilling of non-conventional oil fields. These new fields now represent 55% of US oil production and drastically reduce the need for imports. Imports have thus decreased since 2010 from nearly 10 billion barrels a day to slightly more than 7 million1, a dramatically reduced outlet for the global oil supply. Furthermore, US congress has just repealed a 40-year-old law that prohibited the export of crude oil. The impact of this measure on the world market balance is nevertheless marginal.

OPEC’s2 reduced weight In addition to the United States, other non-OPEC countries such as Russia and Canada have increased their production during the past years, bringing OPEC’s relative weight down to one third of global crude oil production, and, with it, its capacity to influence prices. Furthermore, the organisation’s member countries have been finding it difficult these last few years to align their interests, reducing OPEC’s strength. Certain countries are more or less dependent on oil to finance their public expenditure. Venezuela, for instance, is on the verge of bankruptcy while Saudi Arabia still has substantial financial reserves.

Not so long ago, the prospect of reaching “peak oil” - a production level beyond which the volume of oil produced would decline irretrievably – justified an increasing trend in the price of oil, or at least explained why it would remain at high levels. Some analysts even mentioned the possibility that a barrel of oil would reach 200 USD. This will not happen: the oil glut seems to open the way to durably cheap oil.

1 Source: Bloomberg, US Department of Energy 2 The 12 OPEC member countries are: Saudi Arabia, Iran, Iraq, Kuwait, Venezuela, Qatar, Libya, United Arab Emirates, Algeria, Nigeria, Angola and Ecuador. 3 Source: Bloomberg, IMF.

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EXCESS SUPPLY

Eviction strategyWhen shale oil came to the market, Saudi Arabia started a price war. The country traditionally tries to balance the world market by increasing its production when prices move upwards and reducing production when they go down. This strategy worked as the price of a barrel of Brent remained between 100 and 120 USD from 2011 to 2014. When US producers started to have a downward impact on prices, Saudi Arabia gave up the production quotas defined by OPEC. Its goal is now simple: to evict US producers, whose production costs are around 50 to 60 USD per barrel, while the costs of a Saudi barrel are less than 15 to 25 USD per barrel.

Today’s weak prices essentially reflect an excess in supply, which, according to the International Energy Agency, is above 1 million barrels a day, as demonstrated by the rise in crude oil stocks in the US. There are other factors weighing on prices, such as increasing short positions in the futures market, and lower growth in demand from emerging countries, a consequence of their slowing growth rates.

Oil-consumption is still increasingGlobal demand for oil is nevertheless still increasing, unlike the fall observed in 2008-2009 during the great recession. With prices remaining low and an anticipated increase in company defaults now that hedges are maturing, the supply of shale oil should progressively fall. In 2016 oil production in non-OPEC countries should decline. These changes should lead to a gradual increase in prices, the magnitude of which is difficult to predict.

OVERALL FAVOURABLE IMPACTS ON THE GLOBAL ECONOMY

Generally speaking, lower prices have a positive impact on global activity through a transfer of wealth between producing countries and importing countries. Oil acts as a tax in favour of producers and against consumers. Households’ purchasing power and company margins both benefit from lower prices. Nevertheless, this positive effect on growth was smaller than anticipated in 2015. On the one hand households, particularly in the United States, increased their savings and therefore did not direct all the money saved towards consumption. On the other hand, lower inflation has not triggered a further decrease in interest rates, which are already at rock-bottom levels. Lower prices should nevertheless bear fruit in 2016.

Lower prices relieved the public budgets of many importing emerging countries and reduced their current deficits. In these countries households and companies are usually significantly subsidised by artificially low energy prices. Lower prices allow governments to remove these subsidies and to channel the public expenditure towards more productive areas such as investment.

Lower oil prices nevertheless have negative impacts on exporting countries. Russia experienced a wide-ranging recession in 2015 and activity could continue contracting in 2016. Public budgets are going through rough times, forcing some countries to use their foreign exchange reserves to maintain their living standards. Saudi Arabia’s reserves have lost 100 billion dollars since mid-20143.

The US bond market was also impacted by lower oil prices. Risk premiums on the energy sector’s bond debt with high yield ratings jumped to record levels and contaminated other segments of the market. This creates a higher cost of finance that acts as a brake on investment and therefore on activity. The favourable impact on consumption is, nevertheless, undeniably the strongest ■

Past performance is not a guide to future performance

A DIFFERENT ENVIRONMENT


EXPERTISE I ALTERNATIVE INVESTMENT©

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HEDGE FUNDS A TIME OF RENEWAL

L ong reserved for rich Anglo-Saxon investors, the industry has been through two significant transformations and is now embarking on a new

change. To begin with, a certain popularisation of hedge funds occurred when funds of funds appeared; institutional investors then became the main investors in hedge funds in order to diversify their portfolios.

The third transformation is linked to changes in the European Union’s regulatory framework for asset management. Many vehicles are now available in formats that satisfy AIFM or UCITS regulations2. This transformation guarantees that demanding compliance and risk management specifications are met and also increases transparency in terms of the strategies pursued.

The hedge fund industry’s success can be largely explained by its objective, which is to achieve positive returns irrespective of the performance of the underlying financial markets, thanks to sophisticated investment management techniques such as the short selling of securities. These vehicles, sometimes called “absolute return funds”, have a number of different strategies and seek to identify pockets of opportunity across all asset classes, whether it be in anticipation of a rise or a fall.

The alternative investment

industry (including hedge funds)

has experienced meteoric

growth since its beginnings in

1949, the year the American

company A.W. Jones & Co.

was created. Today the industry

manages 2.7 trillion dollars1

through 6,000 funds.

RECENT DISAPPOINTING PERFORMANCE

In spite of these ambitious goals, the performance of alternative managers has turned out to be somewhat disappointing over the last few years when compared to the period before the financial crisis and the Great Recession (2007-2009). Between 1999 and 2008 the annual average performance of the Hedge Fund Research index was 6.3%3. Since 2009 it has fallen to 3.2%4, a significantly lower level than the performance generated by traditional asset classes. What are the reasons for these disappointing returns?

Dispersion and correlationFor some time assets have been strongly correlated, making life more difficult for managers who adopt “Global Macro” strategies that try to anticipate the movements in different markets. If correlations between positions are strong, the benefits in terms of diversification are lower, and, once again, the losses linked to falling positions reduce the gains made on rising positions. For managers who adopt long/short strategies that combine long positions with short selling, yields tend to drop when the dispersion between stocks is weak. This unstable pattern has also created problems for managers who adopt “trend following” strategies, where positions are taken based on recent market trends. Just when a trend was beginning to appear and the manager had taken a position, the trend started to reverse, forcing the manager to cut the positions.

Sources: 1 BarclayHedge database, third quarter 2015 – 2 AIFM: Alternative Investment Funds Managers, UCITS: Undertakings for Collective Investment in Transferable Securities – 3 Hedge Fund Research – 4 and 5 Bloomberg – 6 Societe Generale Private Banking, Bloomberg

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Lower volatilityThe volatility of Gross Domestic Product (GDP) growth rates has declined and the same is true of financial markets. In the United States, for instance, the S&P 500 index has only been through two corrections of more than 10%5 since the European crisis in mid-2011. This has a negative impact on strategies that benefit from volatility, such as “Global Macro” strategies.

Financial RepressionWith lending rates close to zero since the crisis, central banks have started to use their balance sheets to accumulate large volumes of sovereign bonds, thus depressing yields. Investors are therefore driven to seek higher and riskier yields which also fall, until yields, whatever their maturity or quality, all converge towards zero. For investors establishing relative value strategies on bonds, potential yields have deteriorated.

Zero-rate policyIt is often forgotten that interest rates can be an important source of yields for hedge funds. When a fund short sells a security, it receives the proceeds of the sale, which are then invested in low-risk bonds until the security is bought back. The fall in yields has therefore had a negative impact on the remuneration of these investments, as shown in the chart.

TOWARDS BETTER PROSPECTS

The normalisation of US rates should ease financial repression and stimulate volatility. The conjunction of an increase in interest rates, lower correlations and greater dispersion should lead to better yields for hedge funds.

We believe these funds are an asset class in their own right, where performance is largely independent of how classic investments are evolving. Our discretionary management has thus recently integrated a structural allocation to these strategies in the mandates entrusted to us by our clients.

In order to control the associated risks, it is essential to have a good fund selection team. Not only is the investment universe very wide, but the performance of these funds is also very dispersed. Investing in an index is therefore not a satisfactory solution and it is essential to be able to identify managers with strong convictions and highly developed investment processes.

Societe Generale Private Banking offers its clients vehicles with diversified underlying assets and strategies in order to optimise the risk/return ratio, benefiting at the same time from great transparency with regard to the strategies implemented by the selected managers ■

Investing in hedge funds might in certain regions be subject to eligibility criteria and reserved for certain types of investors.

7,0%

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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Trailing 12m performance

Average performance

Average real performance (vs Citi 3M USD)

GLOBAL HEDGE FUND PERFORMANCE6


PORTRAIT I ENTREPRENEUR

I gnace Van Doorselaere says his “career” started at seven years old when, each weekend, he

helped his parents in the family butcher shop. There was no choice and it was hard work but there were some benefits. “Because I gave the change, at school I was good at mental arithmetic and I also developed a client-focused mind. I knew nevertheless very clearly that I would never take over the family business: I wanted to discover the world.”

GOING INTO BUSINESSAt twenty Ignace Van Doorselaere decided he would work until forty and then teach and share his experience with young people. With a taste for languages and good commercial judgement he chose the business world. He graduated in Management from KU Leuven (Belgium) and then went to Wharton Business School

(USA) for an MBA, specialising in entrepreneurship and finance.“This experience boosted my confidence. I also learnt that in life or work you must make strategic choices using a synthetic vision of a complex reality. When you implement your strategy, this vision must be used more like a compass than a rigid plan.”When he returned, Ignace joined the Boston Consulting Group in Paris. “It turned out that consulting wasn’t for me. I liked the strategic thinking but I also wanted to implement the strategy myself.” This opportunity would be given to him by one of his corporate clients: Interbrew from Louvain.

THE WORLD’S LOCAL BREWERWhen the brewer decided to set up a Mergers & Acquisitions department, few people understood this decision. “In the new department I was the first and… only member of staff.”This is when The World’s Local

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STRATEGIC THINKING:

A COMPASS FOR SUCCESS

Ignace Van Doorselaere is one of the architects of the impressive success

of Interbrew (AB InBev), the Louvain Brewer, and of the listed lingerie

group Van de Velde. Below is a portrait of a passionate entrepreneur who

is driven by hard work and a very client focused mind.


Brewer concept appeared, though without the exact name. “How do you make money with beer? To succeed you must excel in each one of the business segments covered. This means you must have the strongest brand in the most relevant segments and sell all the other ones.”With the question “What is the consumer’s favourite brand?” Interbrew became what it is today, a giant brewer. The first decisive transaction was the purchase of the Canadian company Labatt. Van Doorselaere became a member of the Executive Committee and ran the business in the Netherlands and then in Western Europe.

FROM INTERBREW TO THE VAN DE VELDE GROUPAfter twelve years in the beer business, Ignace was approached in 2003 by Van de Velde, the lingerie group. The Board of Directors gave him a mandate to run the company with Herman Van de Velde for five years. The adventure finally lasted more than 12 years…These two sectors are closer than one would think. “They both have similar dynamics. There is a similarity

between the independent managers of the food and beverage business and those of lingerie boutiques, the variety of premium brands, the final consumers.”

LINGERIE STYLINGWhile there are many similarities, Ignace Van Doorselaere started by conducting a thorough review with the Board of Directors. “What are the growth drivers? What will we do? How will we do it?” The result was the Lingerie Styling concept based on two observations: most women are not satisfied with their physical appearance and breasts play a major role in the image a woman has of herself.“In marketing terms, we are talking about a segment willing to spend more for lingerie that will make them feel good. We adapted our products, our services and our distribution system to this. We considered our overall approach like a fitting-room, a flexible constant in the context of a client environment and company that are both continuously changing. A woman must feel good, and must for instance be able to rely on professional advice from the saleswomen and from the lingerie

stylists in the shop. Through the brands, the improvement of its distribution system and innovation, the Lingerie Styling concept built, and continues to build the significance of the Van de Velde group.”

WHAT FUTURE AFTER LINGERIE?Between the Interbrew and Van de Velde periods, Ignace Van Doorselaere founded his own company: 4F. Four ‘F’ for ‘Flexible’, ‘Focus’, ‘Fair’ and ‘Fight’, with Ethical Performance as a common theme. “At the time I taught in several schools as I had promised myself I would do. I also invested in young companies and created the One Child One Dream fund to offer the non-profit sector resources to conduct targeted and efficient work.”Ignace Van Doorselaere will continue this work when he steps down as Van de Velde’s CEO at the end of the year. As a shareholder, whether alone or with others, his approach will always be the same: an autonomous and independent entrepreneur, just like his parents in their butcher shop a long time ago ■

VAN DE VELDE

With its mission, “Shaping the

bodies and minds of women”,

Van de Velde NV is a key player

in the women’s lingerie and

luxury bathing suit markets.

The company is present in

Europe, North America, and more

recently in China.

It is focused on developing strong

and complementary brands

(PrimaDonna, Marie Jo et Andres

Sarda) and optimal service in

shops with its Lingerie Styling

programme. Van de Velde works

with 5,000 specialised shops

and owns its own shops under

the Rigby & Peller, Lincherie and

Private Shop brands.

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PRIVATE BANKING I UK REGIONAL PRESENCE

OUR REG IONAL E XPANSION NOW AND THEN

S GPB Hambros’ first regional office was established in Cambridge in 2006. Our

main objective was to look after our clients better and to enhance the relationship with the business community and their advisors. It has been rewarding to be part of the local community delivering international private banking services to our clients in the local area. This we believe differentiates SGPB Hambros from other wealth managers and is central to building long-term relationships with our clients.

We now have offices in Cambridge, Newbury, Leeds, and in Edinburgh in Scotland. These are all areas of strong economic growth and significant wealth creation.

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Over 15 years ago, when Societe Generale acquired Hambros Bank, established in London in 1839, we had private bankers based outside of the city. In 2006 we decided that it was time to establish permanent regional offices.

THE START OF OUR REGIONAL EXPANSION

We undertook regional research in conjunction with a wealth management consultancy, Datamonitor, in 2006 to ascertain both the demand for private banking services and where wealth creation had been taking place over recent years. Not surprisingly, the South East did well in this survey based on income, property values and wealth creation through enterprise.

This growth story, however, was not confined to the South East. In the last 20 years, there has been a tremendous burst of activity that has transformed many UK cities from their traditional reliance on manufacturing or heavy industry towards a more diversified, service orientated economy.

TEN YEARS LATER, THE TREND CONTINUES

The recession has also influenced the way some behave in relation to business and financial matters. Even politics has changed in response to the crisis. The government has focused on giving regions a greater say in how they generate growth and therefore wealth. This increasing political devolution to the regions is evidence of the growing recognition of the importance of regional wealth.

Last year, we carried out a new survey. Over the past ten years, some of the UK regions have largely contributed to wealth generation and entrepreneurship, and we know from our clients that these skills are not isolated to the capital. Entrepreneurs all over the UK are building businesses, creating jobs and generating the growth we need to see our economy prosper.

S PR ING/SUM MER 2016 I N°9 I L A LE T TRE I 09

OUR REG IONAL E XPANSION NOW AND THEN

For instance, Leeds is the driving force behind Yorkshire and will play a central role in the success of the Northern Powerhouse concept over the coming years. These clients need the same service as our London based clients, it is as simple as that.

Cambridge with its rich tradition of education and innovation and its proximity to London was always going to provide an excellent location for an office of SGPB Hambros. Ever since we opened our doors in 2006, we have been supporting clients locally and across East Anglia with our blend of service and expertise.

Newbury, the home of Vodafone and mobile telecommunications, services the Fast Track economic zone of the Thames Valley. It is positioned on the cross roads connecting Oxford, Southampton, Bristol and Reading. Connectivity is the key in the region and with Crossrail the region will benefit from fast two way traffic from the capital. Many of our clients choose to live in the region and commute either to the capital or internationally.

The Edinburgh office was established in 2008 as the first SGPB Hambros office in Scotland. The Scottish economy boasts a wide range of economic activities including most notably tourism, whisky, oil and gas, financial services and technology. The economy and the international interest in Scotland have given rise to a huge level of wealth which requires a broad range of financial advice and services. Accordingly, the office serves a diverse range of clients across the whole of Scotland.

We recognise that not all clients want to have a relationship with a London banker. By having a physical presence on the ground, we are able not only to cement existing relationships, but also offer broader networking opportunities amongst the business community which is as important now in this era of social networking as ever. Local real estate knowledge assists our clients, certainly when offering credit solutions. The regional bankers are also increasingly working with the international teams in London to provide local knowledge for international clients seeking to invest in property outside London.

We have been growing our local teams steadily and they work closely with our specialist teams who travel regularly to see them and their clients.

A key priority for the regional teams is to facilitate local access to the specialist investment management, wealth structuring and credit teams available within the wider Societe Generale Private Banking network. We have created a joined-up approach which means that wherever clients are based, they will receive the same level of service, and this was highlighted as a true benefit at our client arenas that were held in 2015 ■

Should you wish to contact any of our UK regional offices, please use the following email addresses:[email protected]@[email protected]@sghambros.com

10 I L A LE T TRE I N°9 I S PR ING/SUM MER 2016

SERVICES I PRIVILEGE PRIVATE BANKING

ENTRY POINT TO OUR PRIVATE BANKING SERVICES

In 2013, SGPB established “Privilege”, to provide private banking services to clients who want an enhanced banking facility, which is focused on client service. Privilege is the entry point for our private banking offering and is suitable for professionals, retirees, entrepreneurs and executives looking for a dedicated service. Privilege is serviced by over 200 relationship managers across eight jurisdictions: United Kingdom, France, Channel Islands, Gibraltar, Monaco, Luxembourg, Switzerland and Belgium.

We are the only private bank to offer a dedicated service at this level1. Clients are provided with a dedicated relationship manager supported by a range of experts in investment management, wealth planning, advisory, credit (including mortgages), fiduciary trade execution and banking services.

At SGPB Hambros, we pride ourselves on being able to offer clients the best of both worlds: a personal approach to private banking from dedicated specialists combined with global resources of one of the world’s largest financial groups, Societe Generale.

PR I V I L EG E

SGPB Hambros is recognised for providing innovative products and solutions as well as a personalised client service to Entrepreneurs and their companies, High Net Wor th individuals (HNWIs), Ultra High Net Wor th individuals (UHNWIs), foundations, associations and family of f ices. We have, therefore, taken the oppor tunity to make our private banking service available to a wider range of clients by of fer ing “Privilege”.

LISTENING AND UNDERSTANDING YOUR NEEDS

We take time to fully understand the vision and ambitions of our clients and the critical stages in the development of their financial goals. Wealth planning is an evolving cycle and involves more than making individual decisions about savings, mortgages or pensions. By gaining a full understanding of each client’s needs, we ensure that a plan is in place which will strive to meet the required financial objectives. Key to this, will be the dedicated relationship manager who works with clients to understand their short-term and long-term banking and investment/financial needs.

WORKING WITH YOUR PRIVATE BANKER AND OUR EXPERTS

Successful clients often rely on a variety of advisers to achieve their investment/financial goals. Not only will Privilege clients have a dedicated relationship manager but will also have access to our centers of expertise including our investment, credit and wealth planning teams. Our credit specialists can customise secured credit solutions against various asset types and residential properties; our investment team offers guidance on a range of managed solutions and our wealth planners look for holistic solutions. We also understand that clients need access to experts who can not only explain the choices available, but also make them aware of any potential risks involved.

Privilege provides a perfect entry point for clients who want an award-winning private banking service ■

STARTING YOUR JOURNEY

1 Our Privilege service is available to clients who have: In Monaco, Luxembourg and Belgium €250,000 of investable assets; United Kingdom, Jersey, Guernsey and Gibraltar £250,000 of investable assets; Switzerland 250,000 CHF of investable assets and France €500,000 of investable assets.

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TESTIMONIES I BANKERS

We pride ourselves in having experienced and qualified private bankers but we also nurture the next generation and support them in acquiring the skills and confidence to serve clients and build long-term relationships with them. Des Murray (based in Jersey) and Alexia Letort (based in London) are two perfect examples of a seasoned veteran and a young yet already successful private banker. We have asked them a few questions:

WHAT DOES IT TAKE TO CREATE A SUCCESSFUL RELATIONSHIP WITH YOUR CLIENT?DM: Three words: service, service, service. The key is to put the client first and always try to find a solution. AL: Very good communication through regular contact and a proactive and open approach to always find the best appropriate solution. Empathy, respect and genuine care help, I believe, to build a long-term relationship based on trust.

IN YOUR VIEWS, WHAT ARE THE MOST IMPORTANT CRITERIA FOR YOUR CLIENT WHEN DEALING WITH THE BANK?DM: Our clients look for a bank which is financially strong, with a good reputation and image and that offers a wide range of products and services with a good track record. Access to key individuals, such as investment or wealth planning specialists is also essential so they feel they are given the best advice possible. AL: A strong relationship with their Private Banker as well as with other key specialists. They want to be confident that their Private Banker will find them the most appropriate solution. They also look for a strong bank which offers a wide range of financial products and services to give them choice and answer their needs ■

A L E X I A L E T O R TP R I V A T E B A N K E R

S G P B H A M B R O S

D E S M U R R A YS E N I O R P R I V A T E

B A N K E R S G P B H A M B R O S

ONE PRIVATE BANK TWO GENERATIONS WORKING ALONGSIDE

WHAT MADE YOU CHOOSE THE CAREER OF A PRIVATE BANKER?Des Murray: The finance industry in Jersey was expanding rapidly in the late 1970’s making it an exciting place. Banking seemed a natural choice offering an interesting and varied profession and so it has proved. In my first job, I worked in a number of different areas, finding my niche dealing directly with clientsAlexia Letort: Following my master’s degree in Business Law, my curiosity and my desire to work with people coming from various horizons oriented me toward a career in Wealth Management. Being a Private Banker gives me the opportunity to work with clients with different profiles which makes every situation unique.

WHAT ARE THE THREE ATTRIBUTES THAT MAKE A GOOD PRIVATE BANKER?DM: We have to be an all rounder, both professionally and personally and have the ability to listen closely to clients. It is also important to engage with clients, remain discrete and gain trust.AL: The capacity to listen to clients in order to understand their needs, goals and concerns. Be reactive to requests, solve issues and answer questions within a reasonable time. Professional qualifications and knowledge are key but a good degree of curiosity on various subjects is important and helps understanding and interacting with clients.

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TRENDS I MUSIC

Mécénat Musical

Societe Generale helps

Bibliothèque Nationale de

France (French National Library)

acquire 596-page manuscript

penned by Hector Berlioz.

T he Bibliothèque Nationale de France (BNF) acquired a handwritten score of the opera Les Troyens last March, thanks to Mécénat

Musical Société Générale. The manuscript – long thought to be lost – comprises 596 pages of music paper in four large notebooks, all handwritten by French composer Hector Berlioz (1803-1869). Considered a “national treasure” by the BNF, the manuscript will help clear up a number of mysteries surrounding this extraordinary work.

It’s no secret that Berlioz, composer of Symphonie Fantastique, had a penchant for grandeur. His Requiem calls for 500 performers and Les Troyens features no less than five acts! What’s more, the finale and epilogue were often cut from Les Troyens by theatre directors – and even by Berlioz’s own publisher. Now the BNF’s new manuscript will be instrumental in “reconstructing” the most complete version possible of Les Troyens.

The manuscript is a piano-and-voice reduction from 1859. Berlioz mentions it in a letter to his sister: “I have started transcribing the piano reduction from my orchestral score… By poring over my piano score and picking it apart, I’m discovering all sorts of minor flaws that I would never have detected even with the closest of reading - and I am correcting them.” As he composed Les Troyens, Berlioz polished the orchestral score, made changes to the libretto and expanded certain scenes.

These corrections are visible in the manuscript and provide insight into how the work –which underwent countless revisions – came to be. The great Pauline Viardot, singer and friend of Berlioz, has even scribbled her own notes here and there. These precious documents are available to the public on the Gallica digital library1 ■

A FANTAST IC D ISCOVERY

KARINE DESHAYES, YANIS BENABDELLAH, CYRILLE DUBOIS, JEFF COHEN AND THE AEDÈS ENSEMBLE, LED BY MATTHIEU ROMANO GAVE A FIRST PERFORMANCE OF THE MANUSCRIPT

ON 29 MARCH 2016. SOCIETE GENERALE PRIVATE BANKING HELPED ORGANISE THIS REMARKABLE

EVENT, WHICH WAS HELD AT THE BNF.

1 The BNF’s digital collections

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IMPORTANT DISCLAIMERSociété Générale Private Banking (“SGPB”) is the private banking division of the group Société Générale S.A. operating through subsidiaries or branches or departments of Société Générale S.A., located in various countries, hereinafter mentioned, acting under the “Société Générale Private Banking” brand, and distributors of the document.

GENERAL WARNINGThis marketing document, subject to modifi ca-tions, is given for purely informative purposes and does not constitute a contract. The contents of this document are not intended to provide investment advice nor any other investment service, and the document does not constitute and under no circumstances should it be considered in whole or in part as an offer, a solicitation, advice, a personal recommendation to purchase or subscribe for an investment ser-vice and/or product, nor an invitation to invest in the class of assets mentioned herein from any Société Générale Private Banking entity. The in-formation indicated in this document shall not be considered as legal or tax or accounting advice.Some products, services and patrimonial solu-tions might not be available in all Société Générale Private Banking entities. They depend on local laws and tax regulations and might not be adap-ted or authorized in certain countries. As well they have to comply with Société Générale Group Tax Code of Conduct. Furthermore, accessing some of these products, services and solutions might be subject to conditions, amongst which eligibi-lity. Your private banker is available to discuss with you on these products, services and solutions to check if they can respond to your needs and are suitable to your investor profi le.Some investment products/investment services described in this document might not be autho-rized in some territories, might involve numerous risks and may result in a potential loss of the total invested amount, including a potential unlimited loss. Accordingly they are reserved only for a certain category of investors, and/or adapted to investors who are sophisticated and familiar with these types of investment products and/or invest-ment services and/or class of assets. Accordingly, before making an investment deci-sion, as the case may be and according to the applicable laws, the potential investor will be questioned by his private banker within the entity of Société Générale Private Banking where he is client, as to his eligibility for the envisaged pro-ducts/investment service, and the compatibility of the investment with his investment profi le and objectives. He should also consult his own inde-pendent fi nancial, legal and tax advisers to obtain all the fi nancial, legal and tax information which will allow him to appraise the characteristics and the risks of the envisaged products/investment services, as well as his tax treatment, in light of his own circumstances.The full understanding and agreement to the rela-ted contractual and informative documentation in-cluding the documentation relating to the relevant risks is required from the potential investor prior to any subscription of products/investment services. The potential investor has to remember that he should not base any investment decision and/or instructions solely on the basis of this document. Any investment may have tax consequences and it is important to bear in mind that the Société Générale Private Banking entities do not provide any tax advice. A potential investor should seek independent tax advice (where necessary). This document is not intended to be distributed to a person or in a jurisdiction where such dis-tribution would be restricted or illegal. It is the responsibility of any person in possession of this document to inform himself of and to observe all applicable laws and regulations of relevant juris-dictions. This document is in no way intended to be distributed in or into the United States nor directly or indirectly for any US person. The price and value of investments and the in-come derived from them can go down as well as up. Changes in infl ation, interest rates and the rate of exchange may have an adverse effect on the value, price and income of investments issued in a different currency from the potential investor’s ones. The simulations and examples included in this document are provided only for indicative and illustration purposes. The present information may change depending on the market fl uctua-tions and the information and views refl ected in this document may change. The Société Générale Private Banking entities disclaim any responsibility to update or make any revisions to this document. The purpose of this document is to inform investors who shall make their investment decisions without overly relying on the document. The Société Générale Private Ban-king entities do not offer any guarantee, express

or implied, as to the accuracy or exhaustivity of the information or as to the profi tability or perfor-mance of class of assets, counties, markets.This document does not purport to list or summa-rize all the fi nancial products’ terms and condi-tions, nor to identify or defi ne all or any of the risks that would be associated with the purchase or sale of the investment product(s)/asset class(es) described herein.The historical data and information herein, inclu-ding any quoted expression of opinion, have been obtained from, or are based upon, external sources that the Société Générale Private Banking entities believe to be reliable but have not been in-dependently verifi ed and are not guaranteed as to their accuracy or completeness. The Société Gé-nérale Private Banking entities shall not be liable for the accuracy, relevance or exhaustiveness of this information. Past performance is not a guide to future performance and may not be repeated. Investment value is not guaranteed and the value of investments may fl uctuate. Estimates of future performance are based on assumptions that may not be realised, and should not be deemed an assurance or guarantee as to the expected results of investment in such asset class(es). This document is confi dential, intended exclusively to the person to whom it is given, and may not be communicated nor notifi ed to any third party (with the exception of external advisors on the condition they themselves respect this confi dentiality under-taking) and may not be copied in whole or in part, without the prior written consent of the relevant Société Générale Private Banking entity.

CONFLICT OF INTERESTAs a general matter, entities within the Société Générale Group may make a market or act as a principal trader in securities referred in this report and can provide banking services to the companies mentioned in that document, and to their subsidiary. Entities within the Société Générale group may from time to time deal in, profi t from trading on, hold on a principal basis, or act as advisers or brokers or bankers in rela-tion to securities, or derivatives thereof, or asset class(es) mentioned in this document. Société Générale may be represented on the board of such persons, fi rms or entities. Entities within the Société Générale group may be represented on the supervisory board or on the executive board of such persons, fi rms or entities.Employees of the Société Générale group, or persons/entities connected to them, may from time to time have position in or hold any of the investment products/ asset class(es) mentioned in this document. Société Générale may acquire (or liquidate) from time to time positions in the securities and/or underlying assets (including derivatives thereof) referred to herein, if any, or in any other asset, and therefore any return to prospective investor(s) may directly or indirectly be affected.Entities within the Sociéte Générale Group are un-der no obligation to disclose or take into account this document when advising or dealing with or on behalf of customers.Société Générale group maintains and operates effective organisational and administrative arran-gements taking all reasonable steps to identify, monitor and manage confl icts of interest. To help the Société Générale Private Banking Entities to do this, they have put in place a management of confl icts of interest policy designed to prevent confl icts of interest giving rise to a material risk of damage to the interests of SGPB clients. For further information, SGPB clients can refer to the management of confl icts of interest’s policy, which was provided to them by the SGPB entity of which they are clients.

SPECIFIC WARNINGS PER JURISDICTIONFrance: Unless otherwise expressly indicated, this document is issued and distributed by Société Générale, a French bank authorized and supervised by the Autorité de Contrôle Prudentiel et de Résolution, located at 61 rue Taitbout, 75436 Paris Cedex 09 under the prudential supervision of the European Central Bank- ECB, and registered at ORIAS as an insurance intermediary under the number 07 022 493 orias.fr. Société Générale is a French Société Anonyme with its registered address at 29 boulevard Haussman, 75009 Paris, with a capital of EUR 1.009.380.011,25 on 31 March 2016 and unique identifi cation number

552 120 222 R.C.S. Paris. Further details are available on request or can be found at www. privatebanking.societegenerale.fr/.The Bahamas: This document has been distributed in The Bahamas to its private clients by Société Générale Private Banking (Bahamas) Ltd., an entity duly licensed and regulated by the Securities Commission of The Bahamas (the “Securities Commission”). This document is not intended for distribution to persons or entities that are Bahamian citizens or that have been designated as residents of the Bahamas under the Exchange Control Regulations, 1956 of The Bahamas. This document is not intended to be, and under no circumstances, construed as a distribution of any securities in The Bahamas. Neither the Securities Commission nor any similar authority in The Bahamas has reviewed or in any way passed upon this document or the merits of the securities described, or any representations made herein. Belgium: This document has been distributed in Belgium by Société Générale Private Banking NV, a Belgian credit institution according to Belgian law and controlled and supervised by the National Bank of Belgium (NBB) and the Financial Services and Markets Authority (FSMA) and under the prudential supervision of the European Central Bank- ECB. Société Générale Private Banking NV is registered as an insurance broker at the FSMA under the number 61033A. Société Générale Private Banking NV has its registered address at 9000 Ghent, Kortrijksesteenweg 302, registered at the RPM Ghent, under the number VAT BE 0415.835.337. Further details are available on request or can be found at www.privatebanking.societegenerale.beDubaï: The present document has been distributed by Societe Generale, DIFC Branch. Related fi nancial products or services are only available to professional clients with liquid assets of over $1 million, and who have suffi cient fi nancial experience and understanding to participate in the relevant fi nancial markets, according to the Dubai Financial Services Authority (DFSA) rules.Societe Generale, DIFC Branch does not offer some products and/or services (such as Discretionary portfolio management or Managed advisory services or Prime Market Access), but the branch’s clients can if necessary have access to these products and/or services at the Societe Generale Private Banking entity acting as account holder. Societe Generale is duly licensed and regulated by the DFSA. Further details are available on request or can be found at www. privatebanking.societegenerale.aeLuxembourg: This document has been distributed in Luxembourg by Societe Generale Bank and Trust (“SGBT”), a credit institution which is authorized and regulated by the Commission de Surveillance du Secteur Financier (“CSSF”) under the prudential supervision of the European Central Bank- ECB, and whose head offi ce is located at 11 avenue Emile Reuter – L 2420 Luxembourg. Further details are available on request or can be found at www.sgbt.lu. No investment decision whatsoever may result from solely reading this document. SGBT accepts no responsibility for the accuracy or otherwise of information contained in this document. SGBT accepts no liability or otherwise in respect of actions taken by recipients on the basis of this document only and SGBT does not hold itself out as providing any advice, particularly in relation to investment services. The opinions, views and forecasts expressed in this document (including any attachments thereto) refl ect the personal views of the author(s) and do not refl ect the views of any other person or SGBT unless otherwise mentioned. SGBT has neither verifi ed nor independently analyzed the information contained in this document. The Commission de Surveillance du Secteur Financier has neither verifi ed nor independently analyzed the information contained in this document.Monaco: The present document is distributed in Monaco by Societe Generale Private Banking (Monaco) S.A.M., located 13, 15 Bd des Moulins, 98000 Monaco, Principality of Monaco, governed by the ‘Autorité de Contrôle Prudentiel et de Résolution’ and the ‘Commission de Contrôle des Activités Financières’. The fi nancial products marketed in Monaco can be reserved for qualifi ed investors in accordance with the Law No. 1339 of 07/09/2007 and Sovereign

Ordinance No 1.285 of 10/09/2007. Further details are available upon request or on www.privatebanking.societegenerale.mcSwitzerland: This document has been communicated in Switzerland by Société Générale Private Banking (Suisse) S.A., whose head offi ce is located rue du Rhône 8, Geneva 11, Case Postale 5022 CH-1211 Geneva, and by Société Générale Private Banking (Lugano-Svizzera) S.A., whose head offi ce is located Viale Stefano Franscini 22, 6900 Lugano. Both companies are banks authorized by the Swiss Financial Market Supervisory Authority (FINMA). The collective investment schemes and structured products referred to in this document can only be offered in compliance with the Swiss Collective Investment Schemes Act (CISA). Further details are available on request or can be found at www.privatebanking.societegenerale.chUnited Kingdom: This document has been distributed in the United Kingdom by SG Hambros Bank Limited, whose head offi ce is located at 8 St. James’s Square, London SW1Y 4JU (“SGPB Hambros”). SGPB Hambros is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The availability of the products or services described in this document in the United Kingdom may be restricted by law. Further details are available on request.Jersey: This document has been distributed in Jersey by SG Hambros Bank (Channel Islands) Limited (“SGH CI Limited”), whose registered offi ce address is PO Box 78, SG Hambros House, 18 Esplanade, St Helier, Jersey JE4 8PR. This document has not been authorised or reviewed by the Jersey Financial Services Commission (“JFSC”). SGH CI Limited is authorised by the JFSC for the conduct of investment business.Guernsey: This document has been distributed in or from within the Bailiwick of Guernsey by SG Hambros Bank (Channel Islands) Limited – Guernsey Branch, whose principal address in Guernsey is PO Box 6, Hambro House, St Julian’s Avenue, St Peter Port, Guernsey, GY1 3AE. SG Hambros Bank (Channel Islands) Limited – Guernsey Branch is licensed under the Banking Supervision (Bailiwick of Guernsey) Law, 1994, and the Protection of Investors (Bailiwick of Guernsey) Law, 1987. Gibraltar : This document has been distributed in Gibraltar by SG Hambros Bank (Gibraltar) Limited, whose head offi ce is located at Hambro House, 32 Line Wall Road, Gibraltar (“SG Hambros Gibraltar”). SG Hambros Gibraltar is authorised and regulated by the Gibraltar Financial Services Commission for the conduct of banking, investment and insurance mediation business. The availability of the products or services described in the document in Gibraltar may be restricted by law. Further details are available on request.

Societe Generale Private Banking Hambros is part of the wealth management arm of the Societe Ge-nerale Group, Societe Generale Private Banking. Societe Generale is a French bank authorized in France by the Autorité de Contrôle Prudentiel et de Résolution, located at 61, rue Taitbout, 75436 Paris Cedex 09, and under the prudential supervi-sion of the European Central Bank - ECB. It is also authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Further information on the SGPB Hambros Group inclu-ding additional legal and regulatory details can be found on www.privatebanking.societegenerale.com/hambros

Notice to U.S. Investors: This document is not in-tended for U.S. Persons under the U.S. Securities Act of 1933, as amended and under the various laws of the States of the United States of America.

http://www.privatebanking.societegenerale.com.

© Copyright the Societe Generale Group 2016. All rights reserved. Any unauthorized use, dupli-cation, redistribution or disclosure in whole or in part is prohibited without the prior consent of SG.The key symbols, Societe Generale, Societe Ge-nerale Private Banking are registered trademarks of SG. All rights reserved.


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SOCIETE GENERALEFRENCH LIMITED COMPANY WITH A CAPITAL STOCK OF EUR 1,009,380,011.25 AS OF 30 MARCH 2016

PARIS TRADE REGISTER N° 552 120 222

REGISTERED OFFICE 29 BOULEVARD HAUSSMANN 75009 PARIS

SG HAMBROS BANK LIMITED8 ST JAMES’S SQUARELONDONSW1Y 4JU

WWW.PRIVATEBANKING.SOCIETEGENERALE.COM/HAMBROS

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SOCIETE GENERALE PRIVATE BANKING HABROS€¦ · At a time of banking union, Societe Generale Private Banking, with its renovated platform, offers the best of two worlds: the strength