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Invisibly Unfolding Impact The Credit Suisse Magazine Since 1895 Issue 4 International Edition/English October/November 2 011 Wood Invisibly Unfolding Impact Dendrochronology Wood reveals new findings on lake dwellers / Gold A solid investment / Leonardo da Vinci Landmark exhibition at London’s National Gallery / Bishop of the rain forest Alternative Nobel Prize Laureate Erwin Kräutler / Special Dossier Year of the Forest KLINIK HIRSLANDEN – the leading private hospital in the greater Zurich area No matter whether you are expecting a Looking for a doctor or more baby, need a doctor in an emergency or are information about Hirslanden? looking for a specialist physician, you are in Simply call our Healthline on the very best of hands as a patient, with all T +41 848 333 999 or subscribe online your personal needs and wants. for a Healthline membership to benefit from additional assistance services around your Our hospital focuses on the best possible health. medical attention at university level, built www.hirslanden.ch/healthline around state-of-the-art technology and coup led with personal, all-round care. Accident & Emergency Unit Klinik Hirslanden We have more than 400 accredited phys- T +41 44 387 35 35 icians on hand to cover all the medical fields of a major hospital at the very highest level. Klinik Hirslanden Witellikerstrasse 40 Klinik Hirslanden is part of Switzerland‘s CH-8032 Zurich leading Hirslanden Private Hospital Group. T +41 44 387 21 11 [email protected] www.hirslanden.ch 110913_HIR_HI_220x297_Image_Anz_e.indd 1 16.09.11 14:59 Foreword 1 Foreword Nature’s Real Values Real assets have come to the forefront of investing over the past decade, as private clients have looked for physical or identifiable assets such as gold, land, wood, forestry, commodities or tangibles to diversify their portfolios of financial holdings. In this issue of bulletin, we focus on a real asset that has a wide history of uses – wood. For hundreds of thousands of years, wood has been consumed for fuel, construction material and infrastructure, which has been critical to human development and survival. Earth contains about one trillion tons of wood, which grows at a rate of approximately 10 billion tons annually. Wood is an abundant, carbon-neutral resource, which makes it an intense source of focus as renewable energy. But wood goes far beyond energy uses. In the article “Fungus or Strad?”, we find that tree pathologists have discovered an innovative technology to treat wood that can produce violins with the superior sound quality of a Stradivarius crafted in 1711. That is evidence of productivity! Additionally, we learn about the uses for this real asset such as the role wood management plays in the creation of Scotch whisky. Importantly, we glean insight from forestry engineers about how trees are preserved and the advantages of using software and sound waves to determine the viability of trees and forests. As a socially responsible organization, Credit Suisse is committed to raising the awareness of sustainability and preserving the environment. Ingo Petz In 2006, Credit Suisse became the first major Swiss corporation to The Cologne-based writer joined achieve greenhouse gas neutrality for our operations based in Switzerland. bulletin in 2008. In this issue, he explains why a particular wood from By pursuing our strategy, we also achieved this goal for all of our worldwide Scotland left him spellbound. Page 6 operations in 2010. After reading this edition of bulletin, we are reminded not only of the tangibility of investing in real assets, but also of the many utilities and creature comforts real assets bring to our everyday lives. Alberto Venzago The immersive forest landscape Barbara M. Reinhard, Chief Investment Strategist, Private Banking – Americas captured by photographer Alberto Venzago consists of no fewer than 50 individual images. Page 18 Christian GrundChristian | Markus Zucker | Ingo Petz Ingo | Cover If you’ve always wanted to know Gold Winner Gold Winner what a tree doctor is, read the article Photos: Credit Suisse Credit Photos: on Matthias Brunner. Page 11 Gold Winner 20238_440x297_Bulletin_par_e.indd 1 27.07.11 13:55 20238_440x297_Bulletin_par_e.indd20238_440x297_Bulletin_par_e.indd 1 1 27.07.1127.07.11 13:55 13:55 17183_220x297_BulletinCS_jen12_e.indd 1 05.10.11 08:05 Contents 5 Focus on Wood 26 06 The Soul of Wood Tracing the sylvan secrets of Scotland’s national beverage. Focus 11 Ultrasound Diagnosis and ailments and how the tree doctor treats these quiet patients. 14 Stradivarius Do these rare violins owe their tone to craftsmanship, or is it something in the wood? 18 Surprise You’ll rarely get this close to wood and the forest in any publication. 24 Fragrances An ode to the delightful scent of wood. 26 Dendrochronology The Alpine region’s new UNESCO world heritage site, largely hidden, reveals that wood has long been a popular building material. Economy 36 Willing and Able There may be a way out of Deep Down What wood can tell us about the current global economic mess, but is there the some of Switzerland’s earliest settlements. political will? 38 Private Austerity In some countries, private Exploring the lives of ancient lake dwellers. austerity will constrain national economic perfor­ mance in the years to come. Credit Suisse Gold Boom In today’s uncertain 49 Nahmad Collection From private to public, the 33 economic times, investors Kunsthaus Zurich unveils a splendid collection. are succumbing to gold fever. Economy 52 Curtain Call As the Bolshoi Theater reopens its doors, a Swiss company played an important role in the process. Leonardo da Vinci A landmark 55 Pebble Beach We visit the most prestigious classic 42 exhibition in London looks at the car event in the world. great master as painter at the court Sponsorship of Milan. Leader 57 Educating Malawi We visit Malawi to explore the Roger Federer Foundation’s largest project to date. Bishop of the Rain Forest Erwin 60 Kräutler, 2010 Alternative Nobel Prize Laureate. Leader Some articles are linked with kooaba paperboy image recognition. 18 Fragrant Special For all our readers who may have forgotten what the woods smell like. We recommend a follow-up field study in the outdoors. 56 | 57 Dossier 2011 is the UN Year of Forests A perspective looking at both the forest and the trees. 6 Wood The Soul of Wood The flavor of whisky is largely determined by the wooden cask in which it is stored. Bill Lumsden, pioneer and legend of “wood management” and a winner of multiple awards for exotic Glen morangie finishes, provides an insight into the science of the cask – its advantages as well as its limitations. Photo: Stefan Walter Stefan Photo: The Soul of Wood bulletin 4/11 Credit Suisse The Soul of Wood Wood 7 “That’s the pure distillate that we create. As you can see, it is very clear. It’s not yet whisky. That only comes through cask maturation and storage.” ~ Bill Lumsden, a tall man with a mischievous smile, leads the way and Dr. Lumsden – you fell in love with the world of single malts opens a door. We then find ourselves in the most hallowed sanctu- at a tasting in Edinburgh when you were only 24. Did you ary of Scottish malt whisky producer Glenmorangie – the very top have any inkling then that you would become a wood manager floor of the company headquarters in Edinburgh, home to the labo- in a whisky distillery? ratory where Lumsden tests and develops his new whisky creations. I was writing my doctoral thesis in biochemistry at the time, and In the middle of the room, which looks like the workshop of a modern developed a very special interest in malt whisky. I became totally alchemist, is a semicircular table that wouldn’t seem out of place in fascinated by the scientific and technical side, in other words the the tales of the Knights of the Round Table. The shelves of the room production process. The interest in the wood aspect of the production play host to numerous test tubes, whose brown and amber contents process came with time – after I had worked for a number of distilleries shimmer in the light like gold. Lumsden, who is wearing a blue suit and noticed how important the wood really was for the malt. But I and red tie, is a Scotsman through and through and rolls his Rs wasn’t actually a wood manager until I came to Glenmorangie. beautifully as he speaks his native tongue. You say that whisky obtains around three quarters of its taste What’s more, Lumsden is also a biochemist, his doctoral thesis from the wood in which it is housed and matures. What does a having focused on the behavior of yeast under high pressure in wood manager do exactly? atmospheres containing carbon dioxide. He joined Glenmorangie in In a nutshell, I ensure that we obtain high-quality wood in order to 1995 and is currently responsible for the distillation and creation of make high-quality casks – as these are responsible for supplying the new whiskies for the Glenmorangie and Ardbeg brands. Lumsden is finish to the taste of our whisky. In addition, I mull over the kind of viewed as a pioneer and legend of a discipline known as “wood man- barrels in which whisky might be further matured to give it new notes agement”. He has received many awards for his exotic Glenmorangie of flavor. finishes: Once it has matured in former bourbon casks, the whisky is What kind of abilities does a wood manager need to have? transferred by Lumsden to former Burgundy wine barrels or Spanish You need a very good scientific background, but also a highly sherry casks, which add intriguing new flavors to the resulting prod- developed sense of taste.
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