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CHINA oN sHow wHy CHINEsE gAllErIEs ArE bUyINg ArT oN AN INDUsTrIAl sCAlE by DALyA ALbERGE

Sifang Art Museum Nanjing, China

SOUTH KOREAN LITERATURE | CRICKET’S LAST OvER | INvESTING IN KAZAKHSTAN | MEXICO’S MASKED wRESTLERS www.ft.com/wealth Summer2014

FT WEALTH JUNE 2014 CHINESE COLLECTORS WA“ NT TO“INTEGRATE THEIR OWN HISTORY WITH THE WEST’S

Adjustable focus

Special reports editor Michael Skapinker Head of editorial content Hugo Greenhalgh Deputy editor Rohit Jaggi Production editor George Kyriakos Sub-editor Philip Parrish Art director Sheila Jack Picture editors Michael Crabtree, Andy Mears Global sales director Dominic Good Advertising Mariam Lolavar Publishing systems manager Andrea Frias-Andrade Advertising production Daniel Lesar

CONTRIBUTORS Dalya Alberge is a freelance arts journalist Helen Barrett is an FT commissioning editor for special reports Daniel Ben-Ami is an author and journalist Yuri Bender is editor in chief of Professional This issue of FT Wealth ranges far and wide across the globe. Wealth Management, an FT Group publication From China and its explosion of impressive private museums Maya Jaggi is a cultural journalist, critic and that seek to connect the country with its rich and varied past – literary prize judge described in detail by Dalya Alberge – to Maya Jaggi’s insightful Rohit Jaggi is the FT’s aircraft, car and motorcycle columnist report on South Korea’s cultural expansionism through James Mackintosh is the FT’s investment editor literature. “Building an economy without culture is like building Attracta Mooney is a reporter at Ignites Europe a house on the sand,” South Korea’s minister of culture tells her. Adam Palin is the acting online FT Money editor And from Kazakhstan’s tricky balancing act between mighty Lucia van der Post is an associate editor of the neighbours, to our investment focus spotlight on Russia’s FT’s How To Spend It magazine Matthew Sherry and Steve McDowell are economic chill. contributors to All Out Cricket magazine Meanwhile, as the northern hemisphere emerges blinking Matthew Vincent is the FT’s personal into its summer, we look at the economics of those two finance editor quintessentially British sports, cricket and tennis. One is on a Jude Webber is the FT’s Mexico and Central America correspondent sticky financial wicket, while the other offers investors buoyant David White is a freelance journalist returns. Ben Woodhouse is a freelance journalist There is much more and, as ever, it is a varied fare. Please send us any comments, or ideas for other areas that demand as keen a focus in upcoming issues. YOUR NEXT Hugo Greenhalgh, Editor [email protected] FT WEALTH Follow us on Twitter @FTReports September 19 2014

4 FT.COMWEALTH PHOTOS: CHARLIE BIBBY; RICK PUSHINSKY; BLOOMBERG; AFP/GETTY; MAX WHITTAKER; GETTY CO 30 24 10 12 18 6 8 olcin u lot educate to also but collections their display to just not museums Ch of ex means a as industry book publishing its in investing is Korea South security financial long-term its ensure to seeks ways game the as sport, British of Crick Ben by comment As collateral as works their of potential the discovering are collectors Art reassuring necessarily not are Ne nune of influences competing the and elites its of concerned are some Bearish of its elites and the competing of itselitesandthecompeting some areconcernedat thepower As butalsotoeducate collections todisplaymuseums notjust their Ch ex asameansof publishing industry South Koreaisinvesting initsbook ways toensure itslong-term asthegameseeks of Britishsport, Crick potential oftheirworksascollateral arediscoveringthe collectors Art UNCER EMPIRE LITERAR DOWN COLUMN RICH THE IDE THE INVE FEA OP at Rohit www Rohit for investments, hotspot glittering a into transforming is Colombia how into looks Schipani Andres FE VIDEO VIDEO FT erting erting ‘soft power’ internationally ‘soft power’ erting Kazakhstan infl n’ ihaebidn new building are rich ina’s ina’s richarebuildingnew sand ws NTENTS aionasShasta California’s Kazakhstan AT uences ofRussia andChina ST et et URE EN Ja Ja r r h orrelations poor the are ers ers arethepoorrelations WE TA MENT BU S st AS Y TU ‘s gg gg .ft FCULTURE OF c mark ock f oe’internationally power’ oft IN st LEVERAGE T re h ebece watercraft Seabreacher the tries i eiw h Saie the reviews i COLUMN at IN NO ST Ru .c ex sis and istics, FO ’s ’s AL RES EPPES T as orss n shoppers and tourists, pats, economy grows, saand ssia om cnm grows, economy GS CUS Ye OUT et arsley at TH commentators La /we h power the ke Ch ina ON al tt R a th Pr LI emier 18 NE XX 54 XX 50 6 40 46 36 50 48 56 42 44 58 54 52 Ma Ta Rohit a on sitting be might holders debenture sports Why Big ultvillages Outlet uem a os hi revenues their boost can museums Th Th fe atlsn itrclinsights historical tantalising offer can archive personal well-organised A financially and physically game tough – libre Lucha world the and be inequality the Can when Th BU LIFE THE ON BO INVE INVE INVE PLANNING CORRESPONDENT INEQUALITY GLOBAL EQ IN 44 igt h ae nteSeabreacher the in waves the to king XX e thate falsesenseofsecurity arises as es fscrt htarises that security of sense false e SINE UITIES KREVIEW OK iy Carlson rilyn Mo ST Ir XX ST ST ST SI st Ja onbridge YLE ney MENT MENT MENT c mark ock SS gg RO GHT ie h Saie the rides i GURU yKenneth by AD Me ’s go ex 56 orb redressed? be poor Tr Ne ldmine ia rsln sa is – wrestling xican et adin pand s ssoighow showing is ust s lson go tw e billionaires een quiet Vo FT tt Ch gel R a .C ina OM Pr emier W EA LT H 5 INVESTMENT FOCUS ADAM PALIN

THE ROAD Moscow feels chill AHEAD BEN of sanctions threat YEARSLEY

t may have been a mild winter by the index – meaning investment in a The ongoing situation in Ukraine Russian standards, but it has been Micex tracker is essentially a play on 0.8% has highlighted one of the significant a chilling few months for investors volatile energy and commodity prices. fall in prices problems when considering Russian in the country. The annexation of A key attraction for long-term of prime equities: politics. Contrary to Crimea prompted huge net capital investors is Russia’s growing middle residential international law, Crimea is now part outflows – an estimated $50.6bn in class. The likes of supermarket group property in of Russia, and tensions have shifted to Ithe first three months of the year. Magnit are well placed to tap into its eastern Ukraine. Moscow in The stock market, the Micex, fell more demand for goods and services. the irst three From an investment perspective, the than 16 per cent in early March. Domestic growth is slowing, months of 2014 past few months have been tumultuous. Although the index has regained however. The International Monetary At the start of the Ukrainian crisis most of the value lost in the spring, Fund downgraded its forecast for SOURCE: the stock market and the rouble fell investor concerns about the lasting 2014 growth to just 0.2 per cent. The KNIGHT FRANK sharply. The former fell initially around impact of Moscow’s revisionist foreign prospect of deeper economic sanctions PRIME PROPERTY 10 per cent and has drifted a bit lower policy are unabated. against Russian business threatens GLOBAL CITIES since. This left the Micex index trading The Micex is heavily concentrated to compromise growth further. The INDEX on a price/earnings multiple of five and on a handful of companies – Gazprom appeal of Russian shares therefore lies a dividend yield of 4.8 per cent. alone accounts for around one-fifth of primarily in their cheapness. Although this is remarkably cheap, it seems there is no catalyst for a sustained rerating in the short term. Politics rather than fundamentals is still driving returns. When there is calm in Ukraine, the market responds positively; when there is increased violence it slips back. Yet the Russian market has a deeper structural problem. If investors have little faith in the rule of law, it doesn’t matter how cheap the market is – they simply won’t invest. This is not a situation that will change overnight. In my view, when buying Russian equities you are doing so for the long term. In the meantime, from the yield $877bn on offer you are effectively being paid for Financial wealth of Russian the risk that the Ukraine crisis escalates. The weaker currency is helping high-net-worth individuals Russian exporters, including mining (with more than $1m of and energy companies, so earnings could grow. This could mean decent investable assets) income prospects for brave investors. Ben Yearsley is head of investment SOURCE: CAPGEMINI AND RBC WEALTH research at Charles Stanley Direct MANAGEMENT 2014 WORLD WEALTH REPORT

6 FT.COMWEALTH PHOTOS: BLOOMBERG; CHARLIE BIBBY; AFP/GETTY. 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PHOTOS: ALASKA STOCK/ALAMY; CHARLIE BIBBY

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PHOTOS: CHARLIE BIBBY; REUTERS

Footballer Wayne Rooney is widely reported to make £300,000 a week. This figure is all the more startling when you consider that you could run half a county cricket team for a season on that. Cricket is far and away the poorest relation of the UK’s national games. The average annual salary for a first-team player at this year’s Premiership champions, Manchester City, is £5.3m, or more than £100,000 a week. Rooney’s employers, Manchester United, pay their players an average £4.3m a year and Chelsea pays an annual £3.9m. But it is not just Premier League players who enjoy premier league pay. The numbers further down the pyramid are relatively high, with the average weekly wage in the Championship, League One and League Two last season sitting at £6,049, £1,690 and £801 respectively. That is more than £40,000 a year for playing football for a very minor league team such as Southend United. Compare that with the average first-team salary in county cricket: about £50,000 a year. Of course, some elite overseas players, such as former South African Test captain Graeme Smith at Surrey, can make a reported £150,000, but they are extremely rare. The reason for this is obvious to the handful of people who attend county games. For fixtures in the four- day County Championship – the county game’s most prestigious competition – grounds are almost empty. On a purely financial level, the game at county level faces real challenges. Recently retired former Somerset and Durham star and bit-part England player Ian Blackwell has a typical Among the elite: story. He was gold dust during his playing days, dominant England captain in all forms and with a big reputation as an entertainer. Alastair Cook, But instead of finding comfortable work on a media one of cricket’s sofa when he finished playing, Blackwell has started highest earners PHOTO: GETTy ➤

12 |ft.com/wealth Down but not out cricketers are the poor relations of british sport but the game is improving its financial acumen

BY matthew sherrY and steve mcdowell Making the ugby union is far more lucrative. running, The average yearly wage in the clockwise from Aviva Premiership is reported top left: Matthew to be £81,000. And while the Fleming of the top cricketers around the county ECB; English circuit will earn around that figure football themselves, elite rugby Premiership champions players can earn between £200,000 Manchester City; and £300,000. and Surrey’s “It is a competitive market and I Graeme Smith Rrate what our cricketers do as much as footballers and rugby players,” says Richard Gould, chief executive of Surrey county cricket club. “Weneed over, at the age of 36, on the lowest rung of the umpiring to make sure young sportsmen, many of whom can turn ladder to support his young family. He says: “I went their hand to more than one sport, realise you can have a through my career living to my means; I never seemed to really fulfilling career in cricket and make good money.” have spare money. I invested some and was quite astute Gould is certainly doing his bit, pulling the strings of a with property, but a lot of people are not. club that is a benchmark in terms of making money. The “Cricket did give me the luxury to have nice things – Kia Oval outfit generated £2m from Twenty20 cricket cars, houses and holidays – for a while, but now that this alone last year – helping to make Surrey the richest club has all stopped, it is hard work.” in the system. Most solid county pros are awarded a benefit season The England and Wales Cricket Board (ECB) deploys after a decade or so of hard graft, and can make upwards a salary cap, which is designed to maintain a level of £100,000 – a star name such as England captain financial playing field in the domestic game. Each county Alastair Cook, who has his benefit season this year, will can spend a maximum of £2m a year on the salaries of make several times that. But a benefit season involves all its playing staff – less than two months of Rooney’s

a great deal of work, and counties and individuals are pay. Most counties don’t get anywhere near it. PA increasingly wary of it becoming a distraction from the “There are three or so counties closer to the top business of competing on the cricket field. end of the salary cap, but there are also a few counties closer to the £1m mark,” says Gould. “It is not an awful lot of money to fund a full professional squad [if] you ‘we need to make suRe young compare it to rugby union, for example.” Next season, the salary cap will be £5.7m. spoRtsmen Realise you can have Most cricket chief executives are supporters of the a Really FulFilling caReeR in salary cap, because it helps to keep a level financial playing field in the game, but they concede it has cRicket and make good money’ limitations as they strive to attract bigger crowds. ➤ PHOTOS: CHARLIE BIBBy; GETTy;

14 |ft.com/wealth

‘i neveR like to be too optimistic, Appearing for England represents a significant carrot for the country’s aspiring pros, both in cricketing and because the commeRcial financial terms. Analysis of the figures suggests the 11 Reality is we aRe competing players with full ECB central contracts earn around £400,000 before picking up a bat or ball, plus match and with otheR attRactions’ appearance fees. England’s top players are likely to have an earning potential of around £1m a year. “Cricket has to stand on its own two feet and that will determine whether we make more of the spectators’ spend and the broadcasters’ spend,” says Fleming. “We have to ask, ‘Is our product as exciting as football and is it sustainable?’ We created Twenty20 cricket, which is more like the football end of cricket, and that’s doing well.” Ripping up the structure and starting again is simply not possible, so how do you generate more money for players? Agent Rob Barry believes the problem lies in the number of counties – 18 with a total of 390 registered professionals. With the cap in place, it is difficult to offer beyond a certain amount, begging the question of whether governing bodies should just accept that a certain number of “bigger” clubs have more money. “The obvious answer is to have a division below that which is semi-professional and feeds into the top division,” says Barry. “Obviously, there are so many players at the moment in the County Championship who may or may not play for England, so why not make a super elite of 12 or 14 clubs that all pay very well, rather than having an array of salaries in a way that is all very convoluted.” While Barry’s idea seems, in theory, to solve many of the issues, there is a familiar stumbling block: tradition. Top of the order: od Bransgrove, chairman of Attempts to create such a system might be anathema to England’s Ian Bell, left, Hampshire county cricket club, some clubs, many of which have long and rich histories. is on an ECB central is one man widely viewed as an “We have 18 counties – one of the strengths of our game is contract, which gives entrepreneur. He built a new that we have a big pool of professional talent,” says Angus him an earning potential international-grade venue outside Porter, PCA chief executive. of some £1m a year Southampton called the Ageas Bowl It is a question that vexes Fleming, a successful and is credited with rescuing the club investment manager as well as a cricket mandarin. “If from financial extinction. you ask me if I have seen a business plan in cricket that I His view is that the current system would invest in, the answer would be no,” he says. – where richer counties give profits There are positives on the horizon, however. This Rto the ECB to distribute to poorer season will be the first since the Twenty20 competition counties – is fair enough, coupled with the salary cap, but was reformatted so that most games are played on Friday has flaws. “Though generally a supporter of free markets, evening. It is hoped attendances will increase as a result. I can see the sense in an appropriate salary cap,” he says. “It would be wrong to be complacent and I never like “A corollary could be that the clubs that make a lot to be too optimistic, because the commercial reality is of money from activities other than their cricket team that we are competing with other attractions,” says Porter. should be free to ‘buy’ all the best players. In this respect, One avenue that will definitely bring added revenue is the long-term security afforded by ECB to the Oval, say, innovation by clubs. There are signs the decision makers would give Surrey an enormous advantage.” around the country realise this too – hosting concerts and Gould adds: “Perhaps in future it should reflect not building hotels at grounds are among the ways counties only what is coming in through the ECB but also what the are attempting to generate extra revenue. counties are generating through the domestic game. If “It is the counties, among others, that own the ECB, you are paying money to come and see domestic players, not vice versa,” says Hampshire’s Bransgrove. “Not surely the money should flow down to those players. enough of the ECB income is going back to the counties “If a football club can get another 2,000-3,000 people and too much is being spent on Team England and through the gates every week, it can invest more money Loughborough [the ECB’s National Cricket Performance back into the club. “What is the point in trying to grow Centre] as well as other undefined activities.” your audience if you cannot reinvest that in the team?” But what of the men tasked with leading counties in Matthew Fleming is a former England one-day this modern world? “There are some very able people in player and captain of Kent. He has served as chairman county cricket now,” says Fleming. yet there is a caveat: of the Professional Cricketers’ Association and is now a “Will cricket be as big as football? No.” W board director at the ECB. “I am happy that the players are remunerated in line with the money the game Matthew Sherry and Steve McDowell are contributors to PA generates,” he says. “Talent is our core asset and we will All Out Cricket. A fuller version of this article appears in do everything we can to look after it.” its July edition PHOTO:

16 |ft.com/wealth literary leverage By supporting its Book puBlishing industry,south korea is aiming to increase its influence overseas

BY MaYa jaggi Paju Bookcity, a 21st-century hub for the South Korean book trade less than an hour’s drive from Seoul, appears oddly deserted under limpid blue skies. But amid its understated eco-architecture are keys to understanding not just this harmonious, riverside industrial estate but also moves by South Korea to turn hardbacks into soft power. At the library of Youlhwadang Publishers, designed by London-based architect Florian Beigel, an alcove holds authors’ portraits alongside sepia cameos of the publisher’s ancestors. Yi Ki-ung, Youlhwadang’s president and Paju Bookcity’s chief visionary, wants neglected values reinstated as guiding principles in industry. “Korea has such a painful history,” Yi, a youthful man Cultural hub: in his seventies, tells me in his office, where visitors leave left, the Mimesis their shoes at the door. “So much of our cultural heritage Art Museum in has been damaged. We have to rebuild it.” Paju Bookcity, A print workshop nearby is a museum for hot named after an metal presses. Visitors are gifted a metal character – a imprint of reminder of the moveable type Koreans invented in 1377, publisher more than half a century before the printing revolution Open Books of the Gutenberg Bible in Europe. ➤

ft.com/wealth|19 Love of letters: Korea’s long history of the printed word is a source breaks, infrastructure and “demilitarising” the dirt-cheap above, the Paju of immense national pride. Hangeul, the phonetic swampland 30km north of Seoul – close to the North Booksori literary alphabet invented by King Sejong the Great in the 1440s, Korean border – that was all the publishers could afford. festival; opposite, is now sported on designer ties. Paju Bookcity flags a “This was the promised land,” Yi says with a gleam in a statue in Seoul pillar of Korean identity to a world more familiar with his eye. “Nobody wanted to come. I had the foresight.” of King Sejong, K-pop and kimchi (pickled cabbage). Located beside The city has grown to some 300 publishers, printers and who invented the the river Han (of the tiger economy’s “miracle on the related businesses, employing about 10,000 people. Paju Korean alphabet in Han”), the city is designed to recover not only a heritage Booksori, its literary festival, declares itself Asia’s biggest, the 15th century suppressed during Japanese colonial rule between 1910 with 450,000 visitors a year. A children’s book festival is and 1945 but also values eclipsed in the rush to growth thriving. Both receive government funds. “When we first after the Korean war of the early 1950s. This national wanted to build Paju, the government wanted to make self-questioning was brought to a head by the Sewol money off us,” Yi says. “Now it approves.” ferry disaster this April, which president Park Geun-hye blamed on “long-running evils”. his change of heart accords When Paju Bookcity was dreamt up around the time with today’s policy of “cultural of the 1988 Seoul Olympics by seven publishers who went prosperity”, as manufacturing hiking in the capital’s peaks, the government had little and export-led growth interest in investing in books. As construction began have faltered. “In the 21st in 1999, aid for the private initiative was limited to tax century, culture is power,” president Park declared in her inaugural speech in ‘Korean society developed February last year, vowing to “ignite the engine of a creative economically far too quicKly. in Teconomy”. In 2013, South our spiritual foundations, we have Korea recorded a trade surplus in cultural products and services for the second year running – and around double experienced a huge sense of loss’ that of 2012, according to Bank of Korea. This is largely

20 |ft.com/wealth down to the hallyu, the South Korean cultural wave that engulfed east Asia at the turn of the century (not least as an alternative to Hollywood dominance) and rippled across continents. At the crest were TV serials such as Dae Jang-geum (Jewel in the Palace) of 2003. Just as the government poured funds into film then, it has now woken up to literature’s soft-power potential – for a fraction of the outlay. The South Korean book industry – the world’s 10th-largest by number of titles, and supreme in children’s books – is experiencing an export push. “Korea is renowned for the Korean wave. But there is less interest in traditional culture,” Yoo Jin-ryong, South Korea’s minister of culture, said ruefully on an official visit to the UK in early April. He spoke to me after a recital by South Korean soprano Sumi Jo for guests from the London Book Fair. South Korea was this year’s market focus, following government drives at book fairs in Frankfurt in 2005, Beijing in 2012 and Tokyo in 2013. “Building an economy without culture is like building a house on the sand,” Yoo tells me. “Korean society developed economically far too quickly. In our spiritual foundations, we have experienced a huge sense of loss.” A thoughtful man and a former civil servant, Yoo points out that in past centuries, Korean officials were chosen for their skills as poets. “There is a fallacy in the west that Korea is only about economic development,” he says. “We decided that our long history and cultural traditions are important for the world to get to know.”

ne motive may be to reclaim human values after the putative “Asian” ones touted by authoritarian regimes. But it is also a pragmatic strategy for extending the Korean wave, with its “spillover” effect. For every $100 of cultural exports, the government Ocalculates there is a further $412 of knock-on consumer spending. Incoming tourists reached a record 12.2m in 2013, through a hallyu effect among fans of K-pop and K-drama. Amid fears that the wave is flagging, literature is gaining credit as a fount of “creative content”: the TV dramas that began the wave were based on historical novels. “For hallyu to be sustainable,” Yoo says, “we need to create new stories that are entertaining. That is why we promote literature.” Soft power stems from the attractiveness of a country’s culture and values, according to Joseph Nye, the Harvard professor who coined the term in 1990. In getting what you want, he wrote, “seduction is always more effective than coercion”. Such use of literature is not new. Frances Stonor Saunders’ book Who Paid the Piper? detailed a covert US Central Intelligence Agency books programme during the cultural cold war. Theagency distributed 10m books behind the Iron Curtain from the 1950s to the 1990s. Among its secret weapons was Boris Pasternak’s Doctor Zhivago, published by the CIA in Russian and smuggled into the Soviet Union – as revealed in The Zhivago Affair by Peter Finn and Petra Couvée. Soft power can allow tiny but talented players with beefy neighbours to punch above their weight. “For a country as small as Korea, boosting economic power and military forces will be of limited success,” the PHOTO: AFP/GETTY ➤ culture minister says. “So pursuing cultural power is a in the same way that the “Pamuk effect” galvanised very important goal for us.” Other small Asian powers, Turkish translations after novelist Orhan Pamuk’s Nobel including Malaysia, Singapore and Thailand, are prize in 2006. Kyung-sook Shin’s Please Look After watching Seoul’s book strategy keenly. Mother (“Mom” in the US edition), the tale of a country woman who goes missing in Seoul train station, has been angnam, Seoul’s flashily published in 34 countries. It was bought by publisher affluent southside district, is Knopf for six figures, became a New York Times bestseller best known for “Gangnam and won the Man Asian Literary Prize for 2011. Sun- Style” by K-pop star Psy, mi Hwang’s The Hen Who Dreamed She Could Fly, a the first pop video to score philosophical tale for all ages about breaking free of the 1bn YouTube hits. But I battery farm, has also taken off, and its Korean anime went south of the river in spin-off was released in the UK in March. These two search of the quieter arts of women join a posse of Korean authors who have found the Literature Translation acclaim in English, including Kim Young-sam, Yi Mun- Institute of Korea (LTI), Yol, Gong Ji-young, Han Kang and Jung-myung Lee. Gcreated by the Ministry “I feel I have been drilling for oil for 10 years, and my of Culture in 2001 from an existing translation fund. gusher just came in,” says Barbara Zitwer, the New York- A training institute for translators, the LTI has seen its based literary agent who, together with her Korean co- annual budget rise from $5m to $8m in two years. The agent Joseph Lee, spotted many of these writers. “Please institute’s president, Kim Seong-Kon, says hallyu paved the way for “K-lit”. The LTI gives $2m a year in grants to translators and foreign publishers, so far supporting 930 ‘for a country as small titles in 30 languages. More than 100 Korean titles a year as Korea, boosting Reaching out: are published around the world as a result. Kim, whose K-pop star father was an interpreter on a US military base, says the economic power and Psy has found main target is English – a global lingua franca. military forces will be a huge global The national prestige accruing from recent audience international successes has caught the attention of Seoul of limited success’

4 |ft.com/wealth Purist: novelist Hwang Sok-yong opposes government interference in culture

Look After Mom was the breakthrough book.” Although when soft power backfires she credits the LTI with providing sample translations, Zitwer sold the novels on her own synopses with short One literary thriller making waves illustrates both the extracts and uses her own stable of translators. potential and limitations of literary soft power. The It is a reminder that government agencies, which Investigation by Jung-myung Lee is set in a Japanese tend to measure quantity rather than quality, are prison in 1944. It focuses on a fictitious friendship seldom the best judges of literary potential. Commercial between a Korean prisoner and a Japanese guard, literature might even clash with the image a government but it alludes to real atrocities, including Japanese wants to project. Popular genres such as crime fiction, medical experiments on prisoners of war. The novel surprisingly, are still scorned in Korean literary circles, was acquired by a Japanese publisher more than despite the global respect for Scandinavian works. a year ago, but cool relations between Seoul and “The best thing the government can do for the literary Tokyo, and caution over the mood of Japan’s reading world is to keep supporting it and leave it alone,” Hwang public, have, says Lee’s agent in Seoul, suspended Sok-yong, the revered Korean novelist, tells me in a publication indefinitely. Lee had hoped his novel café in Insadong, the old Seoul district of calligraphers’ could be “a bridge to bring Japanese and Korean suppliers. Hwang, whose novel The Shadow of Arms people closer”. “Japanese children don’t study their dissects the black market in arms during the Vietnam history, and politicians try to remove historical guilt war, in which he fought, says: “Every time we have a new from textbooks,” he says. “But they can’t apologise administration, they interfere in culture. They change before they know what happened. Knowledge is the the personnel and try to impose their political colour.” first step.” The case may highlight the danger of a As building work continues at Paju Bookcity, to backlash abroad following too strenuous a push. Yoo incorporate the film industry, the hope is eerie calm will Jin-ryong, the South Korean culture minister, puts give way to a cultural buzz. There is government help his faith in reciprocity: “We want to go to countries with infrastructure. But Lee Sang, director of the Paju where the Korean wave is prominent and introduce book festival, wants regulations stifling the industrial their cultures into Korea too.” complex to be lifted. Burgeoning bookshop cafés, made legal only last year, can still “serve drinks but not food”. Culture minister Yoo knows “the Korean wave wasn’t ‘the best thing the created by government” but “flowed organically”. Music government can do for and drama gained an edge precisely when censorship was lifted. As the government wakes up to the power of the literary world is to the book, it also needs to keep its distance. “Too much Keep supporting it and government help spoils you,” Paju Bookcity’s Yi nods sagely. “I’d like them to give us a fishing rod, not fish.” W leave it alone’ PHOTOS: AFP/GETTY; RAPHAEL GAILLARDE/GAMMA

ft.com/wealth|23 EmpirEs of culturE China’s wealthy are building new museums to display theCountry’s treasures and to eduCate people about its past

BY dalYa alBerge aesl o pto up for sold have Ch i-gr usto sums six-figure ns collectors inese hs pictures whose “T nin1 by 1” ension hn Enli, Zhang Rising st ar:

PHOTO: ZHang Enli TEnsiOn 1 (dETail) 2013 COurTEsy THE arTisT and HausEr & WirTH t is barely five decades since museums in China were Philip dodd, chairman of Made in China, a cultural being set alight and paintings destroyed during the consultancy that forges links between China and the uK, Cultural revolution. Today, though, a very different kind speaks of an “explosion” of museums. How times have of cultural revolution is occurring. like Feng Huang, the changed, he says, remembering his first visit to China in mythical phoenix consumed by fire and reborn from the 1998 when, as director of the institute of Contemporary flames, dozens of museums are emerging from the ashes, arts in london, he was asked by then uK prime minister their walls filled with paintings. Tony Blair to stage an exhibition. although there are no official figures, some reports “i told him this was a waste of time because there was suggest 100 new museums are being built each year, only one gallery,” dodd recalls. “i said i would do it in and so far about 3,800 museums are estimated to have shopping malls in Beijing and shanghai. rather to my mushroomed across mainland China. it is a far cry from amazement, he agreed. Fourteen years later, there are the couple of dozen museums that existed in 1949 when gallery [quarters] all over and very many interesting the Communists came to power. museums beginning to develop.” spectacular art treasures in the summer Palace in drawing parallels between China’s global domination Beijing’s Forbidden City were once the preserve of the today and the uK’s heyday as an empire, he says: “Most emperor. Today’s plutocrats are investing millions of of the major museum institutions in london – the Tate, yuan in their own palaces of art, alongside world-class national gallery, national Portrait gallery – were built state museums, such as those in nanjing and shanghai. in the 19th century when Britain was a dominant power The Chinese have grown wealthy on the back of the that wanted to understand itself and sell itself to the country’s huge export trade and property. The mainland world. There are some correspondences here.” is home to 152 dollar billionaires, second only to the some of the Chinese museums are completely new, us, according to Forbes. The number of millionaires while others are being renovated or extended, but is predicted to rise to 2.2m by 2017 from some 1.4m in establishing firm facts and figures is complex because 2012, according to Wealthinsight, the research company. there are so many municipalities, dodd says. To his But, while private museums in the west are the astonishment, though, 200 owners of private museums ultimate vanity project, those in China – with its culture turned up when he lectured in shanghai. He took some of modesty and the communist influence – are viewed as Chinese collectors in london to see an artist whose dealer Icentres for the greater good of the people. “got down there faster than i could strike a match”, he jokes.

26 |ft.com/wealth ‘There Is an assumpTIon chInese collecTors buy In bulk and don’T know whaT They are doIng. ThaT Is compleTely unTrue’

dodd notes that increasing numbers of collectors are May by Budi Tek, a Chinese-indonesian entrepreneur High-profile figures: looking beyond homegrown art: “My Chinese friends say listed by art & auction magazine as one of the world’s opposite and above they spent 10 years buying their own history in order to top 10 art collectors by money spent. His museum, which left, the Nanjing be able to exhibit it. now, given globalisation, they want is in a former aircraft hangar, is full of Chinese and Sifang Art Museum, to integrate their own history with the west’s.” international art. designed by renowned With so much wall space to fill, Chinese collectors He was among Chinese collectors who descended on US architectural firm have been buying art and antiques from auctioneers london in February for the art14 fair. Tek exudes an Steven Holl; above and dealers worldwide at an unprecedented rate, as if infectious passion for art, singling out purchases such right, Budi Tek, one of they are a commodity. When Hauser & Wirth, a london as “untitled (Tree of light)”, a sculptural installation of the world’s top 10 art gallery, staged an exhibition devoted to Zhang Enli, a real tree, by italian artist Maurizio Cattelan. “Many collectors whose semi-figurative paintings reportedly sell for up artists touch my heart. One of them is Cattelan,” Tek to six-figure sums, 11 were snapped up by owners of says. another is the British sculptor sir antony gormley. Chinese private museums. another collector at art14 was Wang Wei, who, neil Wenman, senior director at the gallery, says: with her billionaire financier husband, liu yiqian, “What is really interesting is that the collectors i work has amassed one of China’s largest private collections, with take things very seriously in terms of research. ranging from antiquities to contemporary art. liu, born They travel a lot to art fairs. They visit galleries. i have to a working-class family in shanghai, left school aged 14 taken them to artist studios in los angeles, new york to make handbags sold by his mother from a street stall, and london. it is quite a phenomenon that so many are undercutting rivals and investing the profits in a wide wanting to open private museums all at the same time. range of companies. “There is an assumption they buy in bulk and don’t in March, the couple opened a second private know what they are doing. That is all completely untrue. museum in shanghai, this time on an abandoned They are very aware of what they are doing. They are airfield, to display a wide-ranging collection of Chinese very well researched. Many have children at universities contemporary artists, including Fang lijun and Zhou in new york or london and they are travelling all the Chunya, and ancient artefacts. The unveiling came time. They are very global in their knowledge.” barely 16 months after the couple opened their first The newest museums include The yuz, shanghai’s museum in the city, on which they are said to have spent equivalent to london’s south Bank. it was opened in rmb271m ($43m). PHOTO: aP ➤

ft.com/wealth|27 The Chinese Museums Association Guide (CMAG), in China is reason enough to visit.” giangrande describes which has just been reprinted, reflects the sheer range Fan Jianchuan as “a fascinating man” and his museum of China’s treasure houses, from art and archaeology, complex as “one of the most amazing places i’ve ever including a unique Eastern Zhou dynasty six-horse been”. chariot in luoyang, Henan, to science and technology. art historian Cathy giangrande, co-author of CMAG, he Jianchuan cluster grounds says that beyond China’s most famous attractions – are set around a lake, and the notably the Forbidden City, where much more of the museums are reached either on site and the Palace Museum are expected to be opened foot down tree-shaded lanes, up – she has been particularly struck by the imaginative or by golf cart. The themes approach of other new museums. are certainly unusual. There is That is exemplified by the Museum Cluster Jianchuan even a museum devoted to foot in anren, sichuan, described by CMAG as “one of the most binding, The Museum of shoes impressive museum experiences you will ever have”. The for Bounded Feet, that recalls Open spaces: below cluster is series of museums devoted to different themes the extreme mutilation young left, the Long and was opened by Fan Jianchuan, a wealthy property girls were forced to suffer in Museum West developer and, according to CMAG, a “charismatic Tan ancient practice that lasted Bund, one of two powerhouse of a man… not a materialist gone mad”. until the early 20th century. giangrande says: “inside, museums opened His collection of an astonishing 8m artefacts deals [Fan Jianchuan] made the levels uneven, so as you walk in Shanghai by primarily with the Cultural revolution and the war around… you have the feeling of being uncomfortable and Wang Wei and Liu against Japan, and his museums are “an expression of the painfulness of bound [and broken] feet. incredible! Yiqian; below right, his wish to expose man’s inhumanity to man, and to The interior was pink, like a brothel, because it was all “2008-09” by Fang show that although the Japanese behaved savagely to about using women. He really had thought about it.” Lijun, which is in the Chinese during the war, the Chinese did the same another museum is devoted to the Japanese war and is the Long Museum’s to their own people during the Cultural revolution”, built like a prison – “so grim and cold”, giangrande says. collection CMAG observes. “The fact that this museum even exists “He was trying to get people to think about the past.”

4 |ft.com/wealth Part of the imperial collection is split between the Forbidden City Palace Museum and the nanjing ‘Fan JIanchuan’s collecTIon oF Museum, which opened a huge new wing last november. arTeFacTs and museums are an Many of the treasures surfaced in recent excavations and some will be coming to the British Museum in london in expressIon oF hIs wIsh To expose september for a blockbuster exhibition, Ming: 50 years man’sInhumanITyTo man’ That Changed China. The show will present jewels of China’s museums – exquisite porcelain, gold, furniture, paintings, sculptures and textiles – to explore the first half of the new Chengdu city museum, and new york-based steven 15th century, when China was a global superpower run Holl, which designed the nanjing sifang art Museum. by one family, the Ming dynasty, which established Part of a $164m development in a national park outside Beijing as the capital and built the Forbidden City. The the city, this opened last november with an exhibition parallels with today cannot be ignored. This was a time that included danish-icelandic artist Olafur Eliasson, of great exploration for China, which had a multicultural who creates installations using light, water, fire and imperial court and artists absorbing outside influences in wind. Property developer lu Jun and his son lu Xun creating artworks of supreme beauty. commissioned steven Holl to create a museum inspired ambitious plans for Beijing include turning part of the by “shifting viewpoints, layers of space, expanses of 2008 Olympic park into a cultural centre with several new mist and water, which characterise the deep alternating museums, notably a new building, set to open in 2017, spatial mysteries of the composition of Chinese painting”. for the lavish national art Museum of China, for which Foreign tourism is not yet sufficiently widespread to French architect Jean nouvel has won the commission. fill so many museums, but such is the Chinese public’s nouvel is among numerous western architects who interest in them that the ullens Centre for Contemporary have secured high-profile commissions in China. Others art alone – a not-for-profit centre in Beijing – attracts half include the Edinburgh-based firm sutherland Hussey, a million visitors a year. its director, Philip Tinari, says of which won an international competition to design the the boom: “it’s a really interesting moment right now.” W

ft.com/wealth|xx A ieadteuiutu rsneo h republic president, the old of presence ubiquitous the and life is just to home europe, is western than larger though which, Kazakhstan, of influences competing discuss the to reluctant is sunglasses, designer thirties, sporting his in bodyguard presidential dressed smartly Kazakhstan. in regime the grey-suited from shoulder fKzk socie Kazakh of nu altog a photographing, as am serves i what about questions probing of hti h countr the in chat eto me 30 BY in hom th so ec As unc ke idon “i the role, his of nature sensitive the to perhaps Owing Fo r-a Yu nrt ics h nraigrl of role increasing the discuss to ener |f et fl ute eerhaothsboss, his about research further r as st e ovnigyi fluent in convincingly her onom e ri me KA t. ana tana’s ’t co Be ue nwmc bu hm”h asnot says he them,” about much know st co ert Mo r eidro h uhrtra aueof nature authoritarian the of reminder ark eA nd m/ nu zA Pa 17 ty qe central sque, wealth wo er inhabitants. m . nc rsultan aeof lace y’ capital s mp nd Kh ai y in na es rr ye eedne h halls the dependence, et n as zarbaye ch ex st mk olwdb series a by followed rmek, as Ab aai h hdwo the of shadow the in tana n and ina asscn-ags,he second-largest, ia’s y At ru St in An pA v, ssian. ro Ab cosalaspects all across ye g ru ep mkdirects rmek is nd ’s saon ssia ye a ndaily in lam ou Ad swe as t a nthe on tap peS ’s 73-year- s, t ➤

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and Belarus at the end of May. He has also encouraged trade with china and central asian neighbours, yet he is ready to clamp down on any Ukrainian-style “separatism” among the 22 per cent ethnic russian population with jail sentences of up to 10 years. similarly, ceremonial processions of tanks, rockets and other military hardware send a stark message to Putin about the perils of trying to annex swathes of Kazakh territory.

azarbayev University in astana – a windswept modern city of the steppes where temperatures range from -35c in winter to 35c in summer – has played a lead role in helping flesh Forces at work: of which are dominated by a huge canvas displaying out the president’s strategy to clockwise from above, a fictionalised interpretation of the president’s become one of the world’s top 30 a military parade in inauguration in 2006. developed economies by 2050. Astana; Alexander in the painting, nazarbayev swaggers down the red The detailed programme involves Lukashenko, carpet past a youthful Tony Blair, a nipped and tucked nboosting per capita income from Nursultan silvio Berlusconi and a recently re-elected George W $13,000 to $70,000, diversifying the hydrocarbon- Nazarbayev and Bush on the left. But, it is the characters on the right with dominated economy so that 90 per cent of gross domestic Vladimir Putin at whom he perhaps shares greater empathy. These include product will be provided by the non-oil sector and a summit in Minsk a guarded-looking alexander lukashenko of Belarus, an boosting Kazakhstan’s central asian culture and identity. this April; some inscrutable vladimir Putin, and a jubilant Boris yeltsin, achieving some of these goals is likely to require of Kazakhstan’s whom nazarbayev supported during the 1991 attempted closer links with china, says shigeo Katsu, a native nomadic farmers coup by soviet stalwarts. of Japan and president of nazarbayev University. an yet despite this overwhelming cult of personality, the intensive Mandarin language course begins there in the president’s strategy for his sprawling, resource-laden autumn. “One cannot choose neighbours and it is clear state has proved a broadly successful one, since he that china will continue to develop close economic ties became leader in 1989. with Kazakhstan, both for export and import,” he says He has stayed close to former soviet partners, having on the sidelines of the asian Development Bank annual signed a eurasian economic Union treaty with russia conference in astana in May. “china is a huge market for goods in transit across our landlocked country.” To implement the president’s grand strategy and ‘it is very difficult to sustAin delicate balancing act between emerging powers to the east and west, nazarbayev recently appointed the 6 per cent gdp growth in A moustachioed, multilingual Karim Masimov as prime $200bn economy. things Are Also minister. The flamboyant, wisecracking Masimov studied in Beijing and Moscow, and enjoys a rapport with tAKing too long to develop’ chinese and Kremlin officials. Western investment banks PHOTOs: GeTTy; reUTers

32 |ft.com/wealth describe him as a “political heavyweight” and “potential ‘most people here feel closer credible successor” to nazarbayev, with long-standing ties to “various elites”, including the small cluster of to russiA, becAuse their pArents oligarchs dominating the economy. were pArt of the soviet union’ among the country’s richest individuals, Bulat Utemuratov has decided to concentrate on developing property in astana, and recently invited pop group Pet shop Boys to help launch a lakeside resort, after selling Halyk Finance, which is buying HsBc’s Kazakh operations. his mining assets to Glencore Xstrata and the country’s “Both men have a strong business acumen and were ready sovereign wealth fund. nazarbayev’s son-in-law, gas to capture the opportunity when it knocked on the door.” and oil tycoon Timur Kulibayev, hit UK headlines after While he sees no problems offering clients “mundane paying £15m to Prince andrew in 2007 – £3m above services” such as deposits, loans, payment cards and safe the asking price – for a 12-bedroom mansion in surrey’s deposit boxes, there is more of a challenge in the premium sunninghill Park, originally provided by the Queen. segment. Kazakh private banking units struggle to service sophisticated demand for property and precious metals, he Kazakh economy must become and receive requests “in a realm beyond the ordinary”, more inclusive and open to such as for “jerseys signed by Manchester United players”. competition, rather than being The economy is not wholly reliant on energy. dominated by this coterie, say “Kazakhstan is self-sufficient in food, is the world’s largest external consultants engaged by producer of uranium and has coal and everything on nazarbayev. yet despite public Mendeleev’s periodic table,” says yerlan syzdykov, the statements of principle, many Kazakh-born head of emerging market fixed income at believe the system is travelling Pioneer investments. The biggest concerns, he says, are in the wrong direction. a short about who will succeed nazarbayev and the associated conversation with erbolat question about whether the economy looks increasingly tDossaev, the economy minister, east to china, rather than west to a russia that has “been reveals the government’s concern and need to introduce able to convince the Kazakh elite that china is about to “contingency measures” to limit losses caused by delays attack Kazakhstan and force it to become a mere province”. to production schedules at the giant Kashagan oilfield in These dramatic questions are clearly occupying the the caspian sea to 0.5 per cent of GDP this year. thoughts of many. relaxing with friends in the food court a consortium involving exxonMobil, royal Dutch of astana’s Mega shopping mall, where KFc does battle shell, Total and eni has pumped $50bn into Kashagan, with local franchises selling Kazakh kebabs and Ukrainian one of the world’s top five oilfields by reserves. But due borscht, engineering student Zhuldyz explains the Modern times: the to leaks found in gas pipes, production is unlikely to dilemma between emotion and pragmatism. “Most people Baiterek observation commence before 2016. here feel closer to russia, because their parents were part tower, which This incendiary topic, played down by the government, of the soviet Union and they speak russian too,” she says. represents a poplar is taboo in the Kazakh press. according to almaty-based “But whether you like the chinese regime or not, they will tree holding a golden brokerage visor capital, the delay is likely to have a 3 per be much better for us. The chinese are likely to invest a lot egg, in Astana, cent negative impact on the Kazakh economy next year, more money in Kazakhstan than Putin ever will.” W Kazakhstan’s capital with a prolonged slowdown now on the cards. “it is very difficult to sustain 6 per cent GDP growth in a $200bn economy,” says Jean-christophe lermusiaux, visor capital’s head of research. “Things are also taking too long to develop and the business environment in Kazakhstan is not as favourable as it was five years ago.” extra capital requirements are frightening away foreign banks as local oligarchs tighten their grip on the financial system. Doing business lower down the economic food chain is simpler, but those who attempt to trade their way into the elite face sterner challenges. “it is surprisingly easy to open a shop in almaty,” says lermusiaux. “But if you need to borrow $30m to renovate a factory or set up a supermarket chain you will struggle to find finance at a profitable interest rate.” Kazakhstan’s population of ultra-rich individuals fell more than 7 per cent to 130 from 2012 to 2013, according to Wealth-X, with the pool remaining static at $20bn. The consultancy attributes the fall to spillover from mainland china, which suffered similar declines. While the country’s top five billionaires have a combined net worth of $12bn, they control just 6 per cent of GDP, suggesting there is room for mid-sized entrepreneurs to flourish. “The younger generation can learn a lot by looking at Kulibayev and Utemuratov,” says arnat abzhanov, chairman of the management board at

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debate

global inequality What does help poor pe“ople is the massive“ expansion of income

A world divided

t is perhaps the ultimate killer BY daniel Ben-ami find the contrast unsettling. In a do not usually disclose the exact value fact: oxfam, the aid organisation, world still blighted by poverty, how of their vast portfolios of assets. estimates the 85 richest people can 85 people have as much wealth as even if the figure turns out to be in the world own as much wealth more than 3.5bn others? only a small reasonable, any grounds for objection as the bottom half of the global minority is likely to feel confident are open to debate. In a properly population. the figure grabbed arguing that such a heavily skewed functioning market economy the Iglobal media attention and was distribution of wealth can be justified rich do not directly expropriate even cited by Christine Lagarde, morally. resources from the poor. Any transfer managing director of the International But statistics should not be taken of wealth happens organically as part Monetary Fund. at face value. the first question to of its normal operation. objections to Numbers do not speak for examine is whether the estimate is extreme inequality, whether moral or themselves, but no doubt many people accurate. For one thing the super-rich practical, should be spelt out. Photo: ReuteRs

40 |ft.com/wealth along with Nicholas Galasso, a policy “What does help poor people, and adviser to oxfam America, could start has massively helped poor people in the their calculations. From Credit suisse’s long run, is the massive expansion of database they could estimate how much income.” In her view, it would be much wealth the bottom half of the world’s better to have a society in which the population owned. they could then poor have dignity, including political work their way down the Forbes rich rights and ample resources, rather than list to calculate how many of the world’s material equality. richest individuals owned an equivalent As it happens, the oxfam paper amount of wealth. this was the basis for does not call for a global equalisation the headline figure in oxfam’s report, of wealth but advocates redistributive Working for the Few: Political Capture transfers, the strengthening of social and economic Inequality. protection and progressive taxation. Fuentes-Nieva also points out that Perhaps even more surprising is when Forbes – a publication that calls Fuentes-Nieva’s insistence that he is itself “the capitalist tool” – recalculated not opposed to inequality in itself. the data using the Forbes list for 2014, “You need some inequality to reward it concluded that only 67 billionaires entrepreneurship and to reward talent owned as much as the world’s poorest and merit and hard work,” he says. half. since the super-rich had prospered oxfam’s main concern is not over the year it took fewer of them to inequality itself but plutocracy. As the match the wealth of 3.5bn people. report’s subtitle suggests, in a world As long as it is recognised as a rough with highly concentrated wealth there is estimate, then, the claim that the 85 a risk that the super-rich will “capture” richest people own as much as half of the political system for their own use. the world’s population is reasonable. It “With this massive concentration of only represents an order of magnitude income and wealth what you see is a rather than a precise number. bias of political institutions towards the the implicit call for redistribution interests of the few,” says Fuentes-Nieva. conjured up by the number is, however, McCloskey concedes this is a open to debate. Deirdre McCloskey, potential problem but looks elsewhere a professor of economics at the to resolve it. “the way to solve that is to university of Illinois at Chicago, argues make the government smaller,” she says. in her forthcoming book, Bourgeois A more limited state has less capacity to

Equality, that redistributing the $1.5tn interfere in people’s lives in detrimental collectively owned by the 85 richest ways. she also argues that other forces people would have a much smaller besides the wealthy, such as trade

impact than widely assumed. she estimates that if it were all redistributed to the poorest half of the You need some population it would only amount to “ $428 per person. But that would only in“equalitY to reWard Ricardo Fuentes-Nieva, head of be a one-off figure – there would be no entrepreneurship research at oxfam GB, says the idea further transfer in subsequent years. of compiling the figure came to him If, instead, the $1.5tn were prudently when he was reading Credit suisse’s invested at, say, 5 per cent a year, it Global Wealth Databook 2013. It was would be a perpetual gain of $21.40 a unions, can capture the government to there that his eye was struck by the year for each person in the bottom half further their own interests. sentence: “the bottom half of the of the world’s population – good but the claim that the world’s 85 richest global population together possess less not that large in the scheme of things. individuals own more than the poorer than 1 per cent of global wealth.” For McCloskey, the emphasis should half of the world’s population is certainly so the starting point for his be on economic growth rather than an arresting figure. But in itself it says calculation was an impeccably capitalist redistribution. “Charity won’t help poor nothing about the best way to free the source. From there, Fuentes-Nieva, people very much,” she says. world of the scourge of poverty. W

ft.com/wealth|41 CORRESPONDENT LUCHA LIBRE

Mexican marvels

he salsa music blares BY JUDE WEBBER out. The lights flash. It is Friday night and about 3,000 mostly T-shirt- clad, working-class spectators are gathered Tin the sports hall that was the 1968 Olympic volleyball venue. Welcome to lucha libre, a Mexican style of wrestling where fighters in colourful masks and outlandish spandex suits – think skeletons, demons and dragons – hurl themselves at each other, often from spectacular heights. It is the second-most popular sport in Mexico after football. Men and women alike are on their feet, cheering the riveting, frequently comic blend of soap opera and wince-inducing acrobatic stunts that has made wrestling an enduring Mexican passion. Glamorous it is not, although Jorge Guzmán, son of Santo, one of the most iconic Mexican wrestlers of all time and himself a top name, maintains it is “an art form, performed live”. Indeed, such is the iconic nature of lucha libre heroes, a Mexico City book festival is using Blue Demon, a contemporary of Santo, as its poster boy. But these days, even though its fans include families with small children dressed up in masks, lucha libre is having to look for new ways to broaden its appeal.

42 FT.COMWEALTH While bill-topping fighters can make millions of dollars, especially in the US, most Mexican wrestlers can only dream of such salaries. Konnan, a Cuban-born fighter who Lords of the ring: made his name in Mexico and the US lucha libre is noted and was dubbed the “Mexican Hulk for its outlandish Hogan”, was one of the lucky ones. costumes, Heavily tattooed and wearing including that of baggy jeans and a T-shirt – he is out Blue Demon, of action as he awaits a hip operation opposite and expects this to be his last year in the ring – he says without a trace of ego: “I made my mark on this sport. I’ve earned good money because I’m considered a legend.” But it was seeing lucha libre reality shows such as The Voice and The wrestlers throw it all away that Apprentice, aims to put the beloved motivated him early on. “It is possible to Mexican sport on the map. become rich, but you have to be smart MOST WRESTLERS ARE IN Together with the AAA, Mexico’s about your finances. I have seen a lot of “ biggest wrestling promoter, Burnett is fighters spend their money on drinking, LU“CHA LIBRE BECAUSE bringing the sport this year to the new strip clubs and drugs. When I broke El Rey television network launched by into this business and saw so many THEY WANT TO BE ON TV Robert Rodríguez, the director of films famous wrestlers broke, I said: ‘This such as Sin City and El Mariachi, that isn’t going to happen to me.’ Early is targeting US Latino audiences. on, I had a financial plan.” “In Mexico, it is very simple,” says “Wrestling is a billion-dollar Konnan is coy about his Pedro Aguayo, who fights as “El Hijo business in the US. Our new lucha earnings but is matter-of- del Perro Aguayo”. “Who earned more libre league will make that market even fact about one thing: “To – Floyd Mayweather or Saúl Álvarez?” bigger,” says Burnett. make the really big he asks, referring to last year’s Aguayo, meanwhile, says WWE, money and be known boxing match in which the American the US wrestling promoter that signed internationally, you demolished his Mexican opponent in Del Rio and Mysterio, “should start to have to go to the one of the richest bouts in history. tremble – Latinos are going to see the US.” He reckons “My father came from a very humble real lucha libre”. only about 40 of home,” Aguayo says. “But me? I have But El Hijo del Santo is sanguine. some 1,000 lucha great cars, a nice house, anything I “Lucha libre isn’t a good business for a libre wrestlers want. Life for stars like us is travel, lot of wrestlers. Most are in it because can command aeroplanes, hotels. You can feel like they want to be on TV,” he says. His big sums, and of Floyd Mayweather.” father, he notes, made his fortune not those, probably Alberto Del Rio and Rey Mysterio from wrestling but from starring in 37 are still in are two of the highest-grossing films built around the Santo character. Mexico. Mexican lucha libre stars to have For Adam Bridle, a young South Guzmán, achieved success in the US, but not African wrestler who has dreamt who fights as everyone can follow in their footsteps. of being a lucha libre star since his “El Hijo del Fluent English is essential, for one grandmother took him to see wrestlers Santo” (Son of thing, says Guzmán, who has set up his in Johannesburg when he was six, the Santo), estimates Hijo del Santo merchandising business fame and glory are still a while away. Mexican wrestlers with shops in Mexico City’s trendy Although he gets booked as a “mid- can double or triple their Condesa district and airport. card” fighter – not top of the bill but earnings by moving to the Enter Hollywood. Lucha libre not the opener either – his life is one of US, “but it is slavery… you get already has money-making endless touring around the country. As fame, but all your image and opportunities from television rights his teammate and training partner Jack merchandising belong to the and video games, but Mark Burnett, Evans, a US wrestler, puts it: “There is

US promoters”. the British television producer behind big competition to make it.” W PHOTOS: ROB GREIG/CAMERA PRESS; REUTERS; FOCUS/EYEVINE

FT.COMWEALTH43 planning personal archives

Stories of our lives

ost people discard BY HELEN BARRETT Provenance – a formal record that dry-cleaning guarantees authenticity – is another receipts, but not reason. “It’s important to do this while Vivien Leigh. The you are still around,” says Helen Hall, Oscar-winning founder of Dig Management, a legacy actress, who protection and collection management Mappeared in 19 consultancy. “Once you are gone, films and nearly 40 stage plays over the stories are lost, then the more than 30 years, found time to file importance is lost.” hers among 10,000 documents in her Hall, a former personal archive. head of entertainment Today’s fashion historians are grateful: memorabilia at Leigh’s laundry records offer insights into Christie’s, the auction how mid-20th century haute couture house, set up her business was preserved and presented in public. in 2010 to help politicians And cinema historians seize on details and businesspeople, of how costumes were chosen for her as well as people in the character of Blanche DuBois, revealed entertainment industry, in correspondence with costumiers who understand how and what to worked on the 1951 film, A Streetcar preserve. “The company was born

Named Desire. out of protecting those back stories.” “You never know what is going to She cites the Marlon Brando

be of interest to future generations,” says Keith Lodwick, theatre and performance curator at the Victoria You neVer knoW What is and Albert Museum in London, which going“ to be of intere“ st took over Leigh’s archive last year. “It is fascinating – her scripts are annotated, to future generations and film lines are rewritten with her thoughts. Anyone like her retaining such information does not have a sense that one day [their documents] will archive, which she documented after the end up in research.” actor’s death in 2004. “We found a 1957 Leigh filed papers throughout her letter from Jack Kerouac, suggesting life, but many people put off organising [Brando] make a film version of On documents, letters and photographs. the Road.” The correspondence points “People sometimes come to us when to a tantalising but unexplored area they are reaching the end of their careers, of cinema history. “It would have been or perhaps when they are [moving] great to know how that conversation house,” says Christopher Marsden, continued… but there was no more senior archivist at the V&A. “But usually information,” says Hall. relatives come after the person has died.” Even an archive’s owner can lose Relatives make poor archivists, track of the significance of their he says. Some are reluctant to throw documents. Martin Rowson, a political anything away, which means the cartoonist whose work has appeared in material is chaotic, while others over- the British newspapers the Guardian edit until little of interest remains. Far and the Independent, is organising his better, says Marsden, for owners to get archive of 32 years’ worth of drawings, to grips with their own documents. which he keeps in his house. PHOTOS: GETTY; VICTORIA AND ALBERT MUSEUM

44 |ft.com/wealth

We found a letter from [char“les] dickens “ complaining about the bill

“I occasionally look in and have no Dickens. Dickens was complaining idea what a cartoon is about,” he says. “I about the bill.” forget – they are about daily or weekly Angel began by scrutinising formal news stories that disappear. There are no company records such as minute books notes about what the news story was.” before moving on to ad hoc documents. Rowson recruited a family member He keeps physical files at the shop to put his drawings in chronological and has scanned many documents for order, but she gave up halfway through. digital storage. “I’m not glad it’s over, “What’s left is older stuff; it needs he says. “It’s very satisfying.” sorting and it’s pretty massive.” Digital storage frees up space, but He has hired a professional to technology is presenting problems handle the rest and has given items for future historians. File formats to the British Cartoon Archive at become obsolete, passwords are lost, the University of Kent and his old storage media decay and laptops can Cambridge college, but as for the rest, be stolen. The V&A has come up with he says he sees it “as a problem to a surprisingly low-tech solution: “We bequeath my legatees”. print [emails and Tifs] to paper,” says Others become absorbed by the Marsden. task of archiving. Tim Angel, chairman But the biggest menace, according of Angels The Costumiers, a family- to Lodwick, is digital photography. owned company, was the first in seven “Vivien Leigh kept more than 1,000 generations to organise thousands – stereoscopic slides. All were numbered 174 years’ worth – of documents stored and dated on the back, so we have a at the shop in Shaftesbury Avenue in view of her and her world, but today, London. It took him a year. who prints things off? “No one had put them together and “Are people dating photos on the we didn’t know what stuff was here,” back and noting down who is in the he says. “We found letters from [John] photo?” he asks. “I’m not – and I’m an Garrick, [Henry] Irving and [Charles] archivist.” W

think inside the box: preserving the past

A personal archive is not just for those in the arts or entertainment – businesspeople are also likely to have documents worth preserving, says Helen Hall of Dig Management. “Americans have been personal archiving for a long time. In Europe and the UK, we are starting to understand the value.” One challenge for archivists is “airbrushing” – the removal of evidence of inconvenient episodes, such as professional disputes or failed marriages. The ideal archive, says Christopher Marsden of the V&A, is “an unselfconscious thing; it’s less artificial and sanitised – a more honest picture”. To avoid the loss of digital documents, Marsden suggests owners at the very least ensure their files are preserved in common formats, such as Tifs or Microsoft Word documents, to lessen the chance of files becoming obsolete. Record-keeping need not be onerous, says Hall. “Tag everything as you go along. It sounds cold, but keep a record of where something came from and how it was used, even if it’s just a scribbled note here and there.” Cinema history: The ideal storage space is cool, dry and out of sunlight, says Marsden. “A lot Marlon Brando of archives get damp and are ruined. But if put in a box, papers and photos are and Vivien Leigh generally still dry after 10 or 20 years.” in ‘A Streetcar But don’t be tempted to store your archive in the garage, Marsden adds. “It’s Named Desire’ usually damp and we do get archives riddled with mould and insects. My heart sinks when we get a call to say, ‘We have this wonderful archive in the garage…’”

ft.com/wealth|45

funding

museums tenants separate from th“e museum operations“ bring in valuable income

and 500 volunteers, and owns 36 Profits from the past listed buildings. Even its own most conservative figure puts its net assets at £40m, making it one of the largest independent museums in the UK. panning a gorge through BY Ben woodhouse While some vestiges of industry Broadly speaking there are two which the river Severn photographsBY remain – the iconic Aga cast iron kinds of museum: those that rely on flows is a symbol of gareth iwan jones kitchen ranges are still built there – government or local authority funding the technologies that traces of heavy industry are not easy and those that operate independently, turned Victorian Britain to spot. The task of preserving the usually reliant on paying visitors. There into a superpower. The memory of the people and the ideas is also a complex web of grants from Shandsome Iron Bridge that changed the world falls to the Arts Council England. Museums bid was the first cast-iron bridge in the world Ironbridge Gorge Museum Trust. for their slice of whatever is available, and is part of Ironbridge, a UN World Set up in 1967, the trust manages 10 but with these grants fast disappearing, Heritage site in the West Midlands that museums scattered along the sides of the the country’s museums are looking lays claim to being the birthplace of gorge. It has more than half a million towards Ironbridge as an example of Britain’s industrial revolution. visitors a year, has 220 employees how to make a profit from the past.

46 |ft.com/wealth items based on designs found in the collections of the 10 museums. Other commercial activities include making costumes for other museums and offering an archaeological service for developers. “Ironbridge is a creative place. We have a huge range of talents and skills among our staff and volunteers and they are an important resource,” says Brennand, who was a City accountant Moneyspinners, before becoming chief executive. clockwise from “But it is a constant challenge. below left: We have many of the pressures of a costume projects; traditional corporation with the added glassmaking for complications of being a conservation Jonathan Harris; and educational charity responsible for a shop in the the upkeep of buildings that may not Victorian town add anything financially to the business.” This year, the restoration costs for the remains of the Bedlam blast furnaces revenue coming from admissions, it is will be more than £500,000. These are not immediately apparent where the a scheduled ancient monument, so it rest of Ironbridge’s money is coming is the trust’s responsibility to preserve from. Its seven on-site shops provide them. “It is essential work, but there is a steady but modest income from no means of making it pay – in a purely souvenirs, but Ironbridge has been able business model it would be just left,” to look at its assets and successfully says Brennand. re-imagine the role of the museum not Yet it is by embracing a more

only as a place for paying visitors but commercial model that Ironbridge has also as a thriving commercial venture. become a pioneer. Local authorities are “People expect to take away a increasingly turning to the Ironbridge

souvenir,” explains Brennand, “but we trust for advice. had to look beyond the gift shop and much more at our property portfolio, the museum lets collections and the expertise of the people “ who work here to develop our income.” pr“operties to what it The museum lets properties to retailers and has what it calls “creative calls ‘creativetenants’ tenants” – artists such as internationally renowned glassmaker Jonathan Harris, who has collectors all over the world. At Ironbridge, history is first and “This works well because while “What I found difficult coming from foremost an asset, a commodity that he runs his business here, he does a purely commercial environment is has to be thoughtfully packaged and demonstrations and offers something that in the museum sector there is a presented to appeal to a steady influx different for visitors,” says Brennand. huge amount of collaboration – in a of visitors. “We have no regular funding “We also have other tenants who are company you don’t tell your competitors from central government or the local separate from the museum operations anything,” Brennand says. “It is not the authority, so everything we do we but still bring in a valuable income.” other museums that are our main rivals. self-generate, or we fundraise or apply The trust has created two retail If someone has been to another museum for grants,” says Anna Brennand, chief brands – Made in the Gorge, which up the road and had a good time they are executive of the trust. uses the working foundry in the more likely to come to your museum. An Arts Council grant contributes Blists Hill Victorian Town museum to “Our biggest competition is 13 per cent to the museum’s annual manufacture cast iron homewares, and tempting people away from shopping income, but that funding runs out at From Our Collections, which involves and the internet. For that it helps to the end of 2014. With 50 per cent of artists creating jewellery and other work together.” W

ft.com/wealth|47 F 48 ce ou in otqe,o hc 01 e cent per 10-15 which of boutiques, 100 approximately comprises metres countr be the to used that city 2,500-year-old a a opened centre, outlet Village Bicester UK’s oper the also which chain, outlet luxury 15, Bu |f th Va ilg faon 500square 35,000 around of village e u eal h uoendiscount european the Retail, lue t. ve co ntr tl va y’ m/ onr atmnh on month. last country the in opened only village shopping outlet luxury first tseems it the of rise unstoppable seemingly the of talk the all or st s dg cu st development wealth trlcapital. ltural et Ch es st ns consumer, inese me ra et g htthe that nge at nt Suzhou, lu Ma at es y xu va BY n lu de ci r a po ry st of Village. Bicester for idea the Scott since sophisticated. more $28bn. over turned the in malls the outlet while 195 2013, in sales of worth ¤12bn for accounted which 200, than more i business. big people. million several of reach within centre the puts from Shanghai drive hours’ of couple a within discounted sell ra th rudtewrd ultvlae are villages outlet world, the around l fbnhdu amnsand garments bunched-up of ils Va Ma ete r becoming are centres e u eal ofuddby co-founded Retail, lue kni 92 aeu with up came 1992, in lkin In Ch uoeaoeteeare there alone europe ns rns Being brands. inese ba in Ch It s2 years 20 is US “ an g’ in n Canada and , In ev es an st er in ead e st d Co ant do htddntdmg hi rn image. brand their damage not did that environment an create to need would high-spending in bring as at price. retail full to cent per 30 of sold be to had the was all merchandise that was centre outlet an was dingy hpeshappy. shoppers to shops coffee and restaurants were there and clean environment, a in out laid beautifully was merchandise displays, window fancy rc ihedfsinbad,such brands, fashion high-end tract ns Pr Ma n’ d,GciadDo,ta would that Dior, and Gucci ada, cu knraie hti ewne to wanted he if that realised lkin a t -rc neir,teewere there interiors, t-price um ‘s wa at eC er th iiu discount minimum a at nt nycu htit that clue only e es erodand old year a least re s cu Ca

st ta th mr,he omers,

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’s “ ll Photo: afP/Getty John Lutzius, a London-based property analyst at Green Street advisors, a consultancy, believes this been instrumental to Malkin’s success. “Scott Malkin has always admired what Marvin traub did at Bloomingdale’s in New york, which was to turn a staid department store into a dazzling destination. he has brought that same sense of showmanship to his centres, which is why Bicester, for instance, has among the highest sales per square foot Lure of the of any retail outlet in the world.” brands: Suzhou In Suzhou, to match the perceived Village, this page, demands of sophisticated Chinese aims to emulate consumers, Value Retail has the ambience of all sell directly in China, and they all sales, has no plans to expand there. increased the levels of service, luxury, luxury retail such need somewhere safe to dispose of their It will open an outlet at Vancouver architecture and entertainment beyond as that found surplus stock.” In addition to Suzhou, airport next spring to draw on the large those in any of its other villages. in Hong Kong, Value Retail is opening another outlet Chinese population living in the city “Nine months ago, the Chinese opposite centre this year, near the Disney resort as well as Chinese tourists, but this is appetite for heavily logoed products being built on the outskirts of Shanghai. its only outlet planned outside europe. shut down almost completely,” Malkin other operators are more cautious in “at heart,” the company says, “we are a says. “high-end Chinese consumers their approach to China. McarthurGlen european brand and see huge potential know and understand luxury and Designer outlets, which says Chinese in fashion-loving Chinese travellers quality, and they want the real thing. visitors account for 20 per cent of its coming to europe to shop.” they can tell in an instant a ‘secretary’s But it will not be long before other bag’, and they don’t want that. they high-end outlet centres arrive in China, have become more sophisticated at a malkin has brought“ a suggests Ian McGarrigle, chairman of faster rate than I’ve observed in any the World Retail Congress. “Modern other emerging market.” se“nse of showmanship retailing in China is moving so fast,” for Malkin the move has been he says, “that it would not surprise me generated by demand from the brands to hisCentres to see the outlet centres… establishing themselves. “[Companies] such as an important niche that will appeal armani, Valentino, Gucci and tod’s to Chinese consumers, who are increasingly attracted not just to luxury but aspirational and international brands too. “Chinese brands will also come to recognise that the less attractive clearance outlets do more harm to them longer term. the brands will quickly take the same route as North american and european retailers in following their customers to the more upmarket outlet villages.” for the moment, though, Value Retail remains a pioneer in China. the Suzhou centre will not be fully open until the end of September, but already customers are starting to pour in. forecasting 10m visitors in the first year, Malkin is confident they will come. “Recreational time in emerging markets is disproportionately focused on shopping,” he says. W

ft.com/wealth|49

investment

sport debentures Emotional rEturns arE of“tEn morE rEliablE “ than financial onEs Club-class perks

he queues can stretch BY david white Projects financed by past issues include Wimbledon experience for spectators for miles. Fans have PhotograPhs BY a roof for Centre Court, new No. 2 and and players. been known to camp rick PushinskY No. 3 Courts and a tennis museum. “We set the price at £50,000 out for days to stake But what is driving demand for to reflect factors such as improved their claim on a ticket the debentures? “Love of tennis and economic conditions – there was a for Wimbledon’s Centre the ‘Wimbledon experience’ is a main global downturn when the last Centre TCourt, where the world’s reason given for wanting to hold Court debentures were issued. The best tennis players do battle at the debentures which guarantee tickets [Andy] Murray effect for many in game’s oldest grand slam. There is the for Centre and No. 1 Courts,” says this country of a British man winning option of entering the public ballot Atkinson. “Prime seats are offered, the singles title here after a 77-year to win a ticket, but there is one way enabling holders to get close to some gap added to the allure of guaranteed to guarantee your seat: Centre Court of the greatest and most dramatic access to Centre Court.” tickets that come with debentures. matches anyone can hope to see. Alan Higgins, chief investment The All England Lawn Tennis and “Tennis tends also to be followed officer for the UK at Coutts, the Croquet Club in southwest London equally by men and women, which private banking arm of Royal Bank of issues debentures through a subsidiary, widens the market for debentures, which Scotland, stresses the need for caution. the All England Lawn Tennis Ground, can be sold on. Its appeal as a sport and “While keen interest in tennis and the to finance improvements to its 5.5ha a dramatic spectacle is all-embracing. unique Wimbledon experience might of grounds and 19 championship- “Tournament tickets that go with be reasons to buy for the wealthy, there standard courts. debentures are the only ones that can is no guarantee that high prices for The latest batch, which were offered be legally resold – and the opportunity selling on tickets and debentures will in April for £50,000 each, with a target to do this for one or two days might continue,” he says. of raising £100m, provided 2,500 also be an attraction.” While there are many examples of guaranteed Centre Court tickets at each The plan is to use the money from sports, from rugby at Twickenham to tournament between 2016 and 2020. the latest debenture issue to repay cricket at Lord’s, successfully using The debentures also give holders access the £35m balance still owed on a debentures to raise finance, a plan to to an exclusive lounge and restaurant. loan to build a roof for Centre Court, use them to redevelop Donington Park April’s issue was a notable increase Atkinson explains, with the rest motor racing circuit in Leicestershire on the £27,750 cost-on-issue of the helping finance the club’s masterplan to stage the 2010 British Grand current 2011-15 debenture series. to improve the grounds. This includes Prix was not considered viable and “Our debentures have always proved installing a retractable roof and more the event went to Silverstone in popular, with recent issues substantially seats for No. 1 Court and repositioning Northamptonshire, where it remains. oversubscribed,” says the club’s finance championship and practice courts. So does one buy a debenture out of director, Richard Atkinson. The club’s chairman, Philip Brook, a love of sport or to make money? Greg “They are an effective way of raising says: “Our aim is to safeguard the Davies, head of behavioural finance funds for improvements to the grounds, championships for future generations at Barclays, suggests a passion for a as the money is ringfenced and does in ways that improve and build on the sport might be the best single motive not reduce the surplus made from the for holding them. “Emotional returns tournament which goes each year to the are often more reliable than financial Lawn Tennis Association and the Tennis buoyant returns for holders ones,” he says. As for buying purely as Foundation to develop tennis as a sport. an investment with the aim of selling on Last year, the surplus was £38.1m, with There is a legal market for the sale of Wimbledon debentures for a profit, “only those to £3m going to the foundation. debentures and the tickets that go with them. The latest whom the price represented a very small “Debentures provide a predictable prices for Centre Court and No. 1 court debentures traded portion of their overall wealth should and constant source of funds, which appear in the FT on the first Saturday of each month via consider purchase unless the pricing is helps [us] plan building projects, such an advert placed by the All England Lawn Tennis Ground. massively under the resale value”. as the roof for Centre Court.” Current 2011-2015 Centre Court debentures sold this David Whitmore, a Centre Court Atkinson can draw on a long year have fetched between £48,000 and £91,000. A pair debenture holder and a senior executive history of the club raising capital via of Centre Court tickets for last’s year’s men’s final were with an information services company, debentures. The first were issued offered for sale at £83,000. Applications for the latest agrees. His two debentures (shared with in 1920 to help meet the cost of 2016-20 Centre Court debenture issue have closed – with a friend), he says, were bought “purely building Centre Court, and No. 1 Court the issue “significantly oversubscribed”. It means all for love of tennis and Wimbledon as a debentures were first issued in 1997. 2,500 debentures will be allocated. great sporting event”. W

50 |ft.com/wealth

book review big Money

Murky worlds

52 |ft.coM/wealth Photo: ReuteRs T Citizens as known these, of important most 2010. in rulings Court supreme by clarified was this but followed, funding political of legality the hmt otiuet independent to contribute to allowed them but parties to wealthy the by and of television funding the on restrictions as such regulations, other included it addition, otiue opltclparties. political to contributed be could that money of amount c f20 put 2002 of Act game. the in player consummate a becoming contributions, corrupting the against argued long had who obama, iiihteiflec fbgmnyin politics. money big of influence the diminish to designed paradoxically, was, that back finance campaign on restrictions democrac for challenges poses discrepancy this realised long have parties political main the both outcomes. electoral influence tale than election presidential 2012 the in role greater a play to came individuals ultra-rich few a from contributions bizarre. as described be reasonably can that consequences unintended have can regulations centur the than greater capacity far a have rich the campaigns political in wealth enormous their deploying by But election. cast each to in votes of number same the have eea er fucranyabout uncertainty of years several th In Big go ev at the iatsnCmag Reform Campaign Bipartisan e y. sbc oalwpse n2002 in passed law a to back es Mo rbfr.Btthe But before. er es sfra h al 20th early the as far as least th un th us ney e rul sta such that is trouble e td ardlredonations large barred ited, aypltcasfrom politicians many , st el o massive how tells sphere resolve. to hard is that politics democr of heart tension a is here n h ors pauper poorest the and Gates Bill Both equal. ra r loivle Barack involves also ory ef st i adverts. dio eto ag campaign large of fect av itlmt nthe on limits rict rg iie to citizen erage ev In roeis eryone y. h electoral the st th r fthe of art at at at swhy is In th ic go the tw e o Yda BY ni el Be n- ami thdt eb la by be to had it Fu our Restore super-Pac. prototype the by supported was election, presidential 2012 the in candidate u ysm fRomne of some by run membership. any donors their to accountable were but themselves parties shadow in organisations new super-Pacs. the to switched campaigning and money the of much as undermined also were parties bonanza. fees a enjoyed consultancies political and levels unprecedented to surged election 2012 the in spending campaign blossomed, super-Pacs dramatic. oigte2012 the losing lesser of the was organisation an such of creation the allowing team campaign months. within support super-Pac own his had he the address, of state 2010 his in verdict Citizens the condemned the candidate support to dollars of millions of It supported. they parties or politicians the with co-ordinate to permitted not were committees), action (political super-Pacs as known became which instead. organisations eotrfor reporter supporters. grassroots from donations on was then the emphasis but bid, presidential 2008 his in donors wealthy by supported been had obama Admittedly camp. 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On the rOad

saietta r premier the distinctive shape me“ans everyone wants“ you to stop and chat

Plug and play

Shape of things to come: the bike makes efficient use of otherwise dead space in front of the rider

he Saietta R Premier BY rohit jaggi developments in electric bikes. Perhaps Lawrence Marazzi, Agility’s motorcycle could be the photographs BY too close. The first electric scooter I chief executive, is evangelical about slowest machine on the Charlie BiBBY rode, at prototype stage, almost killed electricity – as well as being a planet. Not because it me when the electrics got confused and petrolhead with a fine ear for the health lacks acceleration or speed locked up the rear wheel – at 50mph. of a petrol engine and a string of sporty – it has both of those – but The next, a production motorcycle, and modified motorcycles in his past. Tbecause its shape is so had an almost useless range of 16 A former aerospace and Formula One distinctive that almost everyone who sees miles on a full charge. But since those engineer, he founded Agility to produce it wants you to stop and chat. inauspicious starts they have been machines that capitalise on the Its unique form is not the only improving rapidly. rapid advances in motor and battery conversation point. It is a plug-in The London-based manufacturer of technology. On the way, Agility has electric motorcycle, available now, at a the Saietta, Agility Global, has made developed enough expertise to build time when all-electric two-wheelers are a conscious effort to move away from its own motor, gearbox and battery still rare on the roads – much more so conventional motorcycle shapes to pack, devised a type of composite that than even the scant numbers of their emphasise a fundamental change in it will license to other manufacturers, four-wheel counterparts. how we can construct and use many and won awards and recognition from I have been keeping a close eye on forms of transport. industry and development bodies.

54 |ft.cOm/wealth See Rohit Jaggi’s review of the Saietta R Premier at ft.com/saietta, and a slideshow at ft.com/wealth

stats exhaust noise tends to disguise that. ElEctric motor: Handling is sporty and reassuring, 96.5bhp, 127Nm courtesy of front forks that also stray of torque from the conventional, and the brakes impressive: a hefty 127 newton metres top SpEEd: are excellent. Varying amounts of of torque, three seconds for 0-60mph, 105mph; regenerative braking, providing the feel a top speed of 105mph and a range 0-60mph in of the slowing effect of an engine with a between charges of about 120 miles. 3 seconds closed throttle, can be dialled in. A composite box holding the battery raNgE: The bike’s characteristics fit well cells constitutes the frame – engine, city 120 miles into the niche Agility has targeted of suspension and everything else is (including 12- “urban sports” – although the range, attached to that – and is what fills the mile reserve); while adequate for city riders, would, bodywork in front of the rider. That highway 58 if increased, allow the handling to be efficient use of otherwise dead space miles; combined exploited on more suitable roads. helps smooth airflow, Agility says. 74 miles But that is being addressed. Agility’s A gearbox and a chain take drive pricE: £19,770 first model, the Saietta R Premier, is from the brushed electric motor to being produced in a limited edition of the rear wheel, but there are no gears just 60 bikes, priced at £19,770. More to change – in fact, there is nothing range is part of the plans, but for the for either foot to do as, in standard moment filling up on enough fuel to form, the rear brake lever is on the cover 120 miles for less than 60p would handlebars, just like on many scooters. make me chuckle every time I plugged I throw a leg over the single seat the bike into the wall, even if charging (a two-person perch is an option) it did take three and a half hours. turn the key, click the kill switch off But range anxiety will diminish, and… nothing. There is no audible charging infrastructure will grow and indication that the bike is ready to attitudes will change – after all, we go. I don’t see that as a problem, have all become adept at keeping other

but Agility is working on providing essential electrical devices, such as sounds to enhance rider awareness and smartphones, topped up with juice. W Given all of that, perhaps the Saietta involvement as well as to satisfy coming should look even more different from rules requiring electric vehicles to make the norm. To be fair, though, changing enough noise to warn human traffic of the look of two-wheelers is hampered by their approach. front forks that stray the conservative tastes of most riders. Tweaking the throttle further “ They prefer evolution to revolution. reveals plenty of power, delivered in a fr“om the conventional Manufacturers have struggled to sell delightfully linear way. There is a bit make handling sporty anything too radically different. of clattering from the suspension as Marazzi is sure, though, that buyers it smooths out London’s pockmarked want what his bike can offer. And it is streets, but on a conventional bike the

ft.cOm/wealth|55 LIFESTYLE ROHIT JAGGI

A whale of a time

rive it like you stole it,” PHOTOGRAPHS BY near Redding in northern California engine air intake, slicing through the says Rob Innes. “You MAX WHITTAKER where the company is based. It is a water at up to 40kph. can’t break it.” hot early summer day, and the snow The Seabreacher is not intended We are skimming cap of Mount Shasta looks even more for long periods underwater – hence across the smooth blue tantalising when I close the canopy the “submersible” tag rather than surface of California’s and inflate the pneumatic seals of the “submarine”. But diving and running it Dlargest reservoir in two-seat cabin. This early boat, in briefly as deep as two metres under the something that feels like the inside of for the team to upgrade to the latest surface allows for spectacular leaps into

a fighter jet, and Innes should know specification, has no air-conditioning. the air when the downward pressure on about its capabilities – he designed it. The engine powers a rear-mounted the levers is reversed. The strength of Obediently, I pull very hard on one waterjet that can turn from side to the thick glass fibre construction shows

of the two vertical levers in my hands, side, like a conventional jetboat or its worth here – the hull can withstand push on the other, and we switch jetski, but can also tilt up and down, falling back on its tail after leaping instantly from a 80-plus knots per vertically clear of the water. hour straight line to a carving, steep LIKE ANY WATERJET BOAT,“ The water-sealed cabin and built- turn to the left. Keeping my right index IT HANDLES BEST WHEN THE in buoyancy, along with the ample finger tight on the trigger throttle, I “ power, mean the boat can also cope reverse the positions of the levers and THROTTLE IS FULLY OPEN with almost any sea state or waves, says we are thrown into a tight right curve, Innes, although he says he would not banked so far over that water breaks recommend going out in a hurricane over the transparent bubble canopy without having spent time getting to above our heads. This is the remarkable all controlled by the pilot’s feet. Also know how to handle the machine. Seabreacher. Innes and Dan Piazza, controlled by the feet are fins at the That ability to keep its occupants dry co-founders of Innespace Productions, rear that function like elevators on an and composed, whatever the weather call it a submersible watercraft. What airplane, altering the angle of attack of and sea state, has made the Seabreacher onlookers see is something resembling the Seabreacher relative to the water. a natural choice for superyacht owners a dolphin or shark cavorting on – and All that sounds complicated, but who want something more exciting under – the water. Innespace has worked hard, not only than a speedboat to get ashore when Innes, a boatbuilder in his native to produce the instant feedback that they anchor. Indeed, a new version with New Zealand before he moved to the makes using the controls fairly intuitive a folding vertical fin will provide more US, teamed up with machinist but also to cut down the effort required options to store the Seabreacher in Piazza to build a boat that to operate them. the jet ski locker of a yacht – as well as moved through the water with I take a few minutes to dial my allowing for spectacular barrel rolls in the grace and playfulness of responses in, but it is not long before the water. an aquatic mammal. What they I am, indeed, driving it like I stole it. If just 65 sales so far do not make came up with is a watercraft Like any waterjet boat, it handles best the boat exclusive enough, the variety that now has three versions, when the throttle is fully open – and of paint jobs might – a couple of fighter 14 shaped like a dolphin, shark or the nimble manoeuvrability of this planes, a tiger and a spaceship add to killer whale. machine is exhilarating. But the best is the more usual variations on dolphins, Powered by a supercharged yet to come. sharks and whales. Buyers – who range marine engine of up to 260hp, the Rushing forward, planing on the from crown princes to celebrities and boats can zip along on the surface at lateral fins, I push the two levers ordinary boat enthusiasts – of the nearly 100kph. Lateral midship fins, forward and a wall of water rises roughly $85,000 Seabreacher are told controlled by the pilot’s levers, allow it swiftly up and over the canopy until firmly that Innespace will not build two to skim the surface at high speed – and the Seabreacher is underwater. All that identical ones. dig in for tight turns. remains above the I feel I have only dipped into this Innes is talking me through how surface is the midship- watercraft’s potential. Swimming with to coax the best out of the machine as mounted vertical fin, the dolphins may be the dream of many. TRATION: HERGÉ/MOULINSART 20 US we float, engine off, on Shasta Lake, which contains a snorkel for the Being one is, for me, better still. W ILL

56 FT.COMWEALTH

A NEW VERSION WITH A FOLDING FI“N ALLOWS FOR SPECTACULAR “ BARREL ROLLS IN THE WATER

View a video of Rohit Jaggi piloting the Seabreacher watercraft at ft.com/seabreacher, and a slideshow at ft.com/wealth

Aquatic adventures: the Seabreacher is not a true submarine like Tintin’s, but its under- and over- water capabilities make for an exhilarating ride

FT.COMWEALTH57

the business guru LegisLation requiring“ a marilyn ce“rtain number of women carlson on boards is just fine nelson One-way ticket to inclusivity

arilyn Carlson beneficiary of the emerging Nelson is the opportunities for women. former chief “I worry that we have executive and stalled a bit on women serving chairman of on boards. Throughout my Carlson, a travel career there has been a tension Mand hospitality between affirmative action business founded by her father, Curtis versus goal-setting, evolving Carlson. The company’s brands include versus being required. It TGI Friday’s, Radisson and Carlson really takes both. Legislation Wagonlit Travel. requiring a certain number of Carlson Nelson worked for the US women on boards is just fine. company for almost a decade before “[At Carlson], I wanted to becoming chief executive in 1998. create a meritocracy, where we During her 10 years in charge, sales would be able to recruit and grew by $18bn to $40bn. train women as well as men, A former co-chairman of the World where we would have respect Economic Forum’s Davos annual for family and family life and meeting, Carlson Nelson co-founded where we could compete. the forum’s women leaders programme. “I am very proud of building She also chaired the National Women’s a strong executive team and that Business Council, a bipartisan advisory 48 per cent of our leadership council to the US president and team were women. We not only Congress. grew the company – we built a “At the start of my career in the early very strong inclusive culture. 1960s, after studying international “The greatest crisis moment economics at Smith College, I came was during 9/11. We are in the up against the hard reality that there corporate travel business and weren’t a lot of opportunities for women, had people scattered all around particularly with my skillset. the world when all the airports “I eventually won a role as a junior were closed. We continued to securities analyst at Paine Webber, [an serve our customers. Our hotels investment company]. At that time had to put beds in ballrooms to in Minnesota, there were no licensed accommodate guests. female stockbrokers. I was told that “9/11 taught us a lot about I had to sign my name as MC Nelson crisis management. It certainly because they were convinced that taught me that you don’t create no one would buy stocks that were BY attracta 12-month-long cultural exchange, and I a culture in a crisis. It’s in a crisis that recommended by a woman. mooneY was asked by the governor to bring the you rely on the loyalty, creativity and “I spent hours doing spreadsheets, Super Bowl to Minnesota. innovation of your people. looking at patterns to decide which “[The volunteer projects] were “Aspiring young people should look companies to recommend to hold or really entrepreneurial. I had to raise the very carefully at the culture of firms, sell or buy. I really honed my skills at funds, create the organisation, design rather than just the brand or role. If understanding a balance sheet, but I the structure and recruit the volunteers. you’re in an organisation where you wanted to be in the game. I wanted to “Around that time, many don’t feel good about what’s going on, build something, not simply observe corporations began looking for women it’s important to have the courage to and analyse and recommend. and minorities to serve on their leave rather than take a chance that “I became an active volunteer boards. I had experienced the limited your own values become compromised and my roles became bigger and opportunities for women when I was and you get tainted. It is really very hard bigger. I chaired Scandinavia Today, a fresh out of school, but I was also a to repair a tarnished reputation.” W Photo: AckermAn + Gruber

58 |ft.com/wealth