Rathbones Review Autumn 2020

Can investors change the world? Why more of us are investing with sustainability in mind Contents — Autumn 2020

9 Growing up in the world 18 Remote possibilities 4 A sense of responsibility

Contents

4 Can investors change the world? 28 Understanding intelligence The importance of responsible investing Does intellect defy meaningful measurement? 9 Rising to the challenge Vertical farming — a growth industry 32 Managing your digital legacy Protecting and preserving your online 14 Cup of cheer assets From serving time to serving coffee 34 Buying time 18 Home comforts? The enduring appeal of luxury watches The pros and cons of remote working 38 How to spot online scams 22 The next-gen network Expert advice against online fraud What you need to know about 5G 40 Writing in the time of corona 24 Uncharted waters Has literature survived lockdown? The emergence of deep-sea tourism Cover illustration: Sergio Ingravalle/Ikon Images Ingravalle/Ikon Sergio illustration: Cover Parey/Alamy, iStock, Eva Underground, Mccure/Growing Images: Betsy Old Visuals/Alamy Nick Verola/Triton,

2 Rathbones Review rathbones.com A word from Martha Back

24 Welcome Depth of experience to the Autumn edition of Rathbones Review

hat is today routinely referred to as responsible investing has existed in some form for decades and arguably even Wfor centuries. Yet its rise has undoubtedly accelerated in recent years, particularly since the global financial crisis threw the broader notion of sustainability into sharp relief — and now the far-reaching impacts of the COVID-19 pandemic appear to be fuelling it even further.

As a result, incorporating environmental, social and governance (ESG) considerations into investment decisions is no longer regarded as a nice-to-have, with more and more individuals and organisations taking a keen interest in how their pensions and savings can be used to bring about positive change. Our stewardship director, Matt Crossman, explores this phenomenon from a 28 number of perspectives — including his personal experience — in our lead story. Judging genius A fascinating aspect of ESG is that, once you become truly aware of it, you quickly appreciate how it plays a part in myriad aspects of life. Many of the articles in this edition of Rathbones Review illustrate this. See, for example, our pieces on the pros and cons of vertical farming, the inspiring efforts of the Redemption Roasters project, the new normal of working from home and the emergence of deep-sea tourism.

Elsewhere, as ever, we cover a wide range of topics. These include If you have any comments on this publication the continuing and ever-controversial quest to measure or suggestions for topics that you would like to intelligence, the nuanced attractions of the luxury watch market see discussed in the future, please let me know. and the effect of coronavirus and lockdown on the literary sphere. [email protected] We also offer practical advice about three issues of growing significance in an increasingly digitised world: how to manage a digital legacy, how to protect against online fraud and how to prepare Connect with Rathbones for the advent of 5G.

@Rathbones1742 I hope that you enjoy all the articles and find each of them of interest and relevance in these challenging, fast-changing and in Rathbone Brothers Plc ESG-aware times. And please do not forget that we always appreciate and value your feedback.

Rathbone Brothers Plc

The value of investments and income arising from them may fall as well as rise and you might get back less than you originally invested. Martha Back Editor and Investment Director rathbones.com Rathbones Review 3 Can investors change the world?

A 10-year-old girl picks radishes at a farm in the Bekaa Valley, Lebanon, where refugees from the civil war in Syria reportedly work 15-hour shifts for as little as $8 a day.

Image: Eva Parey/Alamy

4 Rathbones Review rathbones.com Can investors change the world?

Can investors change the world?

A growing number of people are questioning how their pensions and other savings are invested. Can we make the world a better place through our investments? And if so then how?

Matt Crossman, Stewardship Director, Rathbones

rathbones.com Rathbones Review 5 Can investors change the world?

ilm director Richard Curtis has turned his focus to a new subject F— the £3 trillion UK pension industry. The man famous for directing Love Actually and Four Weddings and a Funeral as well as founding Comic Relief, is not trying to create a new blockbuster.

His Make My Money Matter campaign aims to make more transparent to individual savers how their pension savings are invested.

The campaign claims that moving money to a ‘more sustainable fund’ can have 27 times more impact in reducing your carbon footprint than giving up Employees at a metal factory in Dhaka, Bangladesh, work without protection, despite the presence of flying and becoming a vegan combined. potentially toxic aluminium dust.

Until recently few people considered “ Shareholders can make a investment returns. And negative how their pensions and savings — often screening on its own is insufficient. running into hundreds of thousands or change. But it takes time What about other sectors? You need to millions of pounds — were being invested. and patience. And it can apply sustainability checks and filters The Make My Money Matter campaign around all your investments. This is highlights how attitudes are shifting. take collaboration.” where ESG —­ environmental, social and Investors are increasingly questioning governance — comes into play. how they can best use their savings to biggest pension schemes — the £75 make a positive change in the world. billion Universities Superannuation Positive investing through ESG Scheme, representing university lecturers, Avoidance and the National Employment Savings Managers looking to invest sustainably Trust (NEST), a government-backed judge companies not just by their financial The most obvious way to many people scheme that has nine million members. prospects but by how they perform on is simply by avoiding investing in ESG issues. They look for best-in-class certain industries. Those using ‘negative Proponents of this approach say that companies that take seriously their screening’, as it is known, typically screen by choking demand for shares in these responsibilities to the planet, their staff, out industries like fossil fuels, tobacco, industries you put downward pressure customers and neighbours and that are munitions and gambling. They invest in on the share price, which makes it harder run transparently and well. funds that explicitly avoid these areas and more expensive for companies to or instruct their investment manager raise capital. In turn, you drive the value There is a growing weight of academic to exclude them from their portfolios. of sustainable companies up, reducing evidence now to show that taking their loan costs. You are effectively these factors into account can boost Where they do not have direct power to redirecting capital — the lifeblood of investment performance. Over the long exclude stocks (perhaps because they are business — to sustainable industries and term it seems that more sustainable part of a large employer pension scheme) companies. can also mean more profitable. they lobby for negative screening. You also avoid the risk of being left Of course ESG screening is not flawless. Campaigners claim that 1,244 with stranded assets — holding shares In July it emerged that workers in institutions managing $14.61 trillion in valueless fossil fuel companies when Leicester linked with making clothes between them have now decided to the world has switched to renewable for online fashion giant Boohoo were exclude fossil fuels from their portfolios, energy. being paid just £3.50 an hour — nearly largely as a result of this kind of lobbying. 60% less than the minimum wage. Half of Britain’s universities have cut However, one of the downsides of this investment ties with the industry. This approach is that you limit your Social media lit up with shoppers

summer, so did two of the country’s investment universe, which can impact promising to boycott the company. Cooper pics/Alamy Ashley Pastryk/Alamy, Images: Robert

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The company saw its shares lose nearly Guy Opperman welcomes investors I went back in 2010 to challenge Shell half their value in the space of a week. proactively seeking to use their savings over its activities in the Canadian oil more positively but disagrees with sands. These are vast swathes of land Managers often rely on specialist campaigners who have forced pension containing heavy deposits of glutinous agencies to help research and rate schemes to not only screen out but also bitumen or extremely heavy crude oil. companies for their ESG performance. divest of existing holdings of ‘high- carbon stocks’. Shell was mining and processing the One ratings agency had given Boohoo oil, leaving deep and ugly scars on the an AA in June, with 8.4 out of 10 for Writing in the Telegraph in July he said: landscape, which needed to be ‘supply-chain labour standards’ (the “I strongly believe this is the wrong restored afterwards. It is an expensive industry average is 5.5). It commended approach. Government believes a and carbon-intensive way to generate the company for its strong policies and partnership with business is the way to oil. Though the company was practices and its low reliance on regions achieve the innovative change required attempting carbon capture and storage where working conditions are poor. to get us to net zero. Holding such and working hard to meet the demands assets places trustees in an influential of environmentalists, we challenged Ratings agencies often focus on different position to nudge, cajole or vote firms Shell as to whether it was worth the factors and can reach very different towards lower-carbon business practices. environmental and economic risk. conclusions from the same evidence. The tactic of simply selling them to American car manufacturer Tesla, for others without the same environmental In 2017 Shell sold most of its holdings. instance, is graded A by one and ranked concerns is counterproductive.” French energy giant Total recently in the bottom 10% by another! So this is announced that it was writing off around not as simple as it looks. He advocates a strategy of constructive $7 billion worth of oil sands assets in engagement — something with which I Alberta because the production costs Divestment am familiar. are too high in a world transitioning to low-carbon energy. After the Boohoo story broke, several of Engagement the country’s biggest sustainable funds In 2013 Shell began considering drilling that had invested in Boohoo sold their I joined Rathbones in 2004 as an assistant in the Arctic. I was there at the AGM holdings. This is known as ‘divestment’. ethical researcher. One of my early jobs again, asking questions. The company was to help Rathbone Greenbank clients eventually retreated. Between 2014 Divestment is often seen as a drastic last file a shareholder resolution at the 2006 and 2018 we were part of a 10-strong step for a manager because once you Shell annual general meeting (AGM). Our team of UK asset managers engaging are no longer a shareholder your power clients joined with over a hundred other with the 10 biggest carbon emitters on to affect change within a company individuals, asking the company to do a the UK stock exchange. I took the lead shrinks dramatically. Pensions Minister much better job of ESG risk management. on Shell, trying to get it to set rates for reducing carbon emissions. Having resisted at first, Shell has now set itself an ambition to become a net-zero emissions energy business by 2050 or sooner.

Since 2014 I have worked with large utility company Scottish and Southern Energy to see how it will reduce its carbon emissions in line with societal expectations. We have pushed persistently for the firm to go further and faster. This year it announced that it had effectively set a plan to align itself with the Paris Agreement targets. We went back and asked it to put an element of its executive pay at risk if it Rathbones has challenged companies over the environmental damage caused by mining oil sands like did not achieve its targets, and it has these in Alberta, Canada. done that.

rathbones.com Rathbones Review 7 Can investors change the world?

If you can draw any lesson from my “ When a firm responds to whether it has materially reduced experience it is that shareholders can slavery yet, but the starting point is for make a change. But it takes time and engagement its share price firms to be actively looking for signs of patience. And it can take collaboration. rises in the following year.” it. We know that there are millions of slaves in the world so it is going to affect In essence, when I appear on behalf of most supply chains at some level. Rathbones at an AGM I represent a company with values. I also represent The Boohoo problem is arguably the 40,000 or more clients who have values result of turning a blind eye to the issue. as well. And I represent nearly £50 billion We are not satisfied with companies worth of assets. That is a lot of weight that simply report not having a modern behind me. There is an even bigger slavery problem. Without evidence of multiplier effect when I collaborate with the checks they have in place to ensure other managers through the Principles for their supply chains are clean we do not Responsible Investment (PRI) or Climate believe them. We want companies to Action 100+. be open about potential issues and to tell us what they are doing to address Research by Professor Elroy Dimson, of them. Transparency is everything. Cambridge University’s Judge Business School, has shown that engagement is In safe hands much more likely to be successful if investors — and large investors in particular A lot has changed in the 16 years since — coordinate their efforts. And the I joined Rathbones. We recognised the results are clear in returns. When a firm importance of responsible investing years responds to engagement its share price The recent scandal surrounding Boohoo exposed ahead of our peers and started the use of ‘sweatshops’ in the fashion industry. rises in the following year — on average managing ethical and sustainable by 8.6% for corporate governance issues portfolios in 1997. We became a PRI and 10.3% for climate change matters. included to ensure that large companies signatory in 2009. were forced to report on their efforts to It is not always easy to conduct deal with the problem. Last year we We know that we will have to continue to collaborative engagement, and inevitably found some of the 350 biggest listed adapt and invest. I am now stewardship you get some companies joining these companies in Britain ignoring this demand. director. I have two colleagues supporting campaigns simply to look good. But when my work, with more appointments in the it goes well, few methods can match it. We drew this to the attention of fellow pipeline. Our priority is to protect and PRI signatories and orchestrated a grow the wealth of the families and Broad canvas campaign. We attracted a coalition of 23 charities who entrust it to our care. Their investment managers, including Aberdeen interests often span generations, so we The range of issues on which we engage Standard, Aviva Investors and Legal & are long-term investors. That means it is is broad. And that is another argument General. Between us we had over £3.2 in their interests not just that we invest for engagement. You can press for trillion in assets under management. in sustainable businesses but that we try improvements on environmental, social We identified 23 companies we saw as to make businesses more sustainable, and governance matters. And you can serious laggards. Together we wrote to too — through engagement. continue to press. these firms ahead of the AGM season, calling on them to comply with the Act Avoidance and divestment have value The campaign I am probably proudest and to disclose what actions they have as strategies but, speaking personally, I of is around modern slavery — a term taken to identify and eliminate slavery believe engagement is the best way to covering forced labour, human trafficking, in their supply chains. We warned that make positive change. forced marriages and debt bondage. It is we would vote against their reports and estimated to affect 40.3 million people accounts if they did not take action. globally and 136,000 in the UK. The results have been incredible. The value of investments and income Rathbones was instrumental in ensuring Around two-thirds of the companies we arising from them may fall as well as rise that when the Modern Slavery Act was targeted have already made changes to and you might get back less than you

passed in the UK in 2015 a clause was become compliant. You can debate originally invested. News Live Images/ZUMA Wire/Alamy iZabed Hasnain Chowdhury/SOPA Image:

8 Rathbones Review rathbones.com Rising to the challenge

Rising to the challenge

Scientists estimate that if we are to feed the world’s growing population we will need 70% more food by 2050. With a mere 10% of the Earth’s surface suitable for cultivation and soil degradation putting much of that under threat, many suggest the answer is vertical farming. It seems the stuff of science-fiction. Can it work?

Susan Stevenson, Investment Director, Rathbones

A worker with freshly harvested baby kale grown in vertical farming beds in an indoor facility in a former paintball arena in Newark, New Jersey.

Image: Mike Segar/Reuters

rathbones.com Rathbones Review 9 Rising to the challenge

saac Asimov believed that the job of “ The general aim is to grow science-fiction writers was to “foresee Ithe inevitable”. He claimed that the The pros and cons more in less space while problems and catastrophes that he and of growing up avoiding the age-old his fellow visionaries presaged were almost bound to happen. What they could drawbacks and caprices of not predict, he ruefully added, were the relying on the once-great solutions. outdoors.” Maybe the most obvious illustration of this argument today is I Am Legend. Key advantages pressing trends closely linked with food Published in 1954, it depicted the bleak of vertical farming security — foremost among them aftermath of a global pandemic. While population growth, industrial the basic premise has manifest — Potential to meet development, urbanisation, loss of arable resonance now, the hero’s running battle food-security demands land and climate change. with hordes of mutant vampires offers — Year-round crop little in the way of applicable wisdom or Proponents contend that all these production practical responses. factors demand a significant shift in our — Immunity to weather relationship with food. Traditional Similarly, a number of classics in the events methods of production are no longer dystopian sci-fi canon prophesied but sustainable, they say, both because there — Less exposure to failed to resolve the interrelated issues is insufficient useable acreage and because chemicals and disease of overpopulation and resource scarcity. such that is available is too distant from One, 1966’s Make Room, Make Room!, — Reduced environmental where the vast majority of people live. was turned into a cult movie, Soylent footprint Green, whose infamous payoff revealed As a result, farming is not quite being an enterprising mega-corporation’s plot turned on its head: rather, it is being to maintain food supplies by secretly rotated through 90º. transforming human remains into ready meals. “It’s vertical because you’re trying to grow more crops on a smaller land Thankfully, science-fact has repeatedly area, and this usually means going shown itself capable of taking up upwards into buildings,” says Dr Erik science-fiction’s slack. Vertical farming, Key disadvantages Murchie, an assistant professor of crop an idea that is already revolutionising of vertical farming science at the University of agriculture, serves as a compelling Nottingham. “The beauty is that you example. — Uncertain longer-term can go as high as you want — if you financial viability have a system that works efficiently.” Its roots lie in crisis. It was inspired by — Unproven scale-up a need to tackle several increasingly A growth industry capacity — Energy-intensive Microbiologist and ecologist Dickson “ Farming is not quite Despommier is routinely acknowledged — Overreliance on as the father of vertical farming. He and being turned on its head: technology his research team at Columbia University, rather, it is being rotated — Suitable only for New York, originally set about popularising through 90º.” certain crops the concept just over 20 years ago.

10 Rathbones Review rathbones.com Rising to the challenge

“ One thing that vertical farming very much has in its favour is policymaker enthusiasm. The World Economic Forum has hailed the ‘numerous advantages’ of such an approach.”

Since then their thinking has been put into practice in a remarkable variety of settings. Today vertical farms can be found in warehouses, shipping containers and abandoned factories; on city-centre rooftops and behind the scenes at Michelin-starred restaurants; and in landscapes as diverse as the arid 1 deserts of the Middle East, the frozen expanses of the South Pole and the teeming conurbations of Japan.

Ocado has made a multi-million-pound commitment to vertical farming. Its CEO, Tim Steiner, has said it will enable the company to satisfy “fundamental consumer concerns on freshness and sustainability” and that it could soon be possible for purchases to be “delivered to a customer’s kitchen within an hour of being picked”. 2 The Future of Food 2040, a study by 1. A worker checks on a crop the National Farmers’ Union, identified growing in a storage container at a vertical farming as a potentially vital vertical farm in British Columbia, component of a radically different Canada. agricultural sector that is likely to emerge during the coming decades. It was 2. At least for now, vertical farming is suited only to growing a limited recently estimated that the market could range of produce. Leafy greens are be worth $7.3 billion by 2025. high on the list. So how does it all work? Essentially, 3. Whereas traditional farming is at the mercy of the weather, critics vertical farming involves growing argue that vertical farming is overly produce in multiple stacked layers that

Images: Bloomberg/ GettyImages, Martin Cervenansky/Growing Images: Bloomberg/ Martin Cervenansky/Growing GettyImages, iStock Sputnik/Science Photo Library, Underground, reliant on technology. 3 are sited indoors. Most systems are

rathbones.com Rathbones Review 11 Rising to the challenge

“ While an ability to grow crops throughout the year and almost anywhere in the world undoubtedly represents a major advance, vertical farming has not What grows up can grow down yet been perfected.”

Between 1940 and 1942 short stretches year-round, dramatically increasing yields aeroponic or hydroponic, and there of tunnel were built as giant bomb shelters — pea shoots typically provide six harvests is rarely any need for soil. Lighting is beneath eight Tube stations. They were a year, but grown underground like this strictly controlled and often comes constructed to the specifications of the they can achieve up to 60. courtesy of state-of-the-art LEDs. rail network with the intention that after Temperature, humidity and plant the war they would be joined together to Because of the farm’s location in the heart of density are thoroughly regulated. create a Northern Line express train route the city, plants can be in consumer kitchens Thanks to recycling, water use can be between Belsize Park and Clapham South. within four hours of harvest. Thanks to short travel times and an absence of up to 95% less than in conventional Once lined with three-tiered wooden pesticides, they maintain a high level of farming. bunkbeds for war-weary Londoners, nutrient density and require little washing. the tunnels at Clapham have now been The general aim is to grow more in transformed to provide the perfect Growing Underground, which employs less space while avoiding the environment for an underground farm. 30 staff, is currently using just 500 square age-old drawbacks and caprices of metres of the available 3,000-square- relying on the once-great outdoors. Richard Ballard and Steven Dring, metre growing space here — but it has plans COVID-19 and lockdown have co-founders of Growing Underground, are to expand to meet demand. on a mission to supply London with local seemingly only enhanced the appeal produce grown sustainably, efficiently and Ballard says: “The real game-changer for of such a philosophy: Infarm, the at minimal environmental cost. In this this technology comes in the near future, specialist with which Marks & section of tunnel they grow between one when the world has an abundance of cheap, Spencer has partnered, reported a and two tons of crops — herbs, salad, pea renewable energy and better battery storage 222% surge in sales during the second and sunflower shoots — each week. and is further along the exponential growth quarter of 2020. curve in adaptation of remote sensor They use low-energy LED lighting, technology. We can then start to produce “People want to eat the same food at state-of-the-art hydroponics technology the full spectrum of vegetables and staples and no soil. An irrigation system recirculates like wheat, soya and maize cost-effectively. all times of the year,” said Emmanuel water to the plants, reducing traditional Evita, Infarm’s global communications usage by 70%. The underground farm uses “Then you will see companies like ours director, when the M&S deal was renewable energy, and the company sends building major farms inside, over, under announced. “This, combined with waste to be converted into electricity to and on the outskirts of major conurbations. lengthy transportation routes and offset its carbon footprint. It is on its way This, in turn, will allow agricultural land overtaxed soil, takes a heavy toll to becoming carbon-neutral. currently threatened from soil degradation not just on the environment but on or environments such as rainforests to The quality of the produce may be even better replenish and return to their natural form.” the taste and nutrition of what we than that of field-grown crops. The highly eat. Our approach allows us to be controlled environment means optimum Above: Richard Ballard, co-founder of Growing climate-independent and grow under

growing conditions can be maintained Underground. any conditions, despite extreme iStock Marks & Spencer, Underground, Images: Growing

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weather or disasters that normally interfere with food production and distribution.”

Storeys of hope

While an ability to grow crops throughout the year and almost anywhere in the world undoubtedly represents a major advance, vertical farming has not yet been perfected. Above all, its longer- term financial feasibility is still uncertain.

Critics suggest that the cost of constructing, lighting and heating vertical farms could outweigh the benefits that they can bring. In 2018 the Japanese Greenhouse Horticulture Association said that 60% of the country’s projects were unprofitable.

Energy use is a particular worry. Artificial lighting and climate management can be notably energy-intensive. Andrew Jenkins, a research fellow at the School Marks & Spencer is one The hope, of course, is that further of Natural and Built Environment at of several major High innovation will address these concerns. Queen’s University, Belfast, has warned Street names to have If and when this happens, say vertical embraced vertical that this could leave vertical farms in a farming. The company farming’s advocates, the route to mass “grey area” and “a long way from being now grows and sells a adoption should be clear. The ultimate a sustainable method of agriculture”. selection of herbs at a proof will lie in the viability of scaling up. number of its London Relatedly, dependency on technology branches, including this Perhaps crucially, one thing that one near Clapham is total. Vertical farms may be immune Junction Station. vertical farming very much has in its to droughts, floods, cyclones, dust favour is policymaker enthusiasm. The storms and other natural phenomena, World Economic Forum has hailed the but they stand at the mercy of power “numerous advantages” of such an failures and tech breakdowns. A single approach, underscoring the impression day without fully functional systems that this is perceived as an authentic could devastate an entire crop. solution.

Currently, there are also constraints on Science-fiction gave us stories; science- what can be grown. Only lightweight fact has given us storeys. It is not produce is suitable, which means that difficult to determine which is likelier the likes of wheat and maize — which to have longer-term relevance. As the rank among the most important food fight to stave off the inevitability of sources — are too large and heavy to be overpopulation and resource scarcity cultivated. continues, we may soon discover if the sky really is the limit.

rathbones.com Rathbones Review 13 Cup of cheer

Redemption Roasters has offered Darren, 46, a fresh start.

Image: Redemption Roasters

14 Rathbones Review rathbones.com Cup of cheer

Cup of cheer Redemption Roasters is a remarkable business that gives prisoners hope for the future by training them to become skilled baristas.

Melanie Wotherspoon, Client Development Director, Rathbones

arren had been in prison for much they developed the company as a of adulthood when two events spin-out of Dubiel’s first coffee business, Dtransformed his life. The 46-year- Black Sheep. old found God, and he found coffee. Faith gave him hope, coffee gave him passion, “We wanted a brand that had a proper and Redemption Roasters gave him a job. story to tell,” says Dubiel. “Through coincidence, we were approached by Eighteen months since his release from the Ministry of Justice, which was Wormwood Scrubs, Darren is still going looking for industry partners to deliver straight, working as a barista in the barista training in prisons. We thought Lamb’s Conduit Street branch of the that was pretty out there. It could be an growing coffee shop chain. interesting story that we could build a concept around — and, rather than just He is one of a growing band of former doing barista training, why not actually prisoners now employed by Redemption build a roastery in a prison and teach Roasters, which has seven shops in the whole value chain around coffee? “ Being around people London and a thriving wholesale business, and having a working with restaurants, bars, cafés, “Of course, we constantly tread the line offices and even some National Trust between sustaining a successful, purposeful job properties. profitable business and doing good. changes your whole People have a misconception that Accidental heroes roasting in prisons is cheaper. If we were outlook on life. The doing this purely for commercial purposes mindset from my old Founders Max Dubiel and Ted Rosner we would just open a warehouse — it life is gone. I feel like did not set out to build a commercial would be easier — but it would take the charity. Entrepreneurs first and foremost, story out of what we do.” I’m making amends.”

rathbones.com Rathbones Review 15 Cup of cheer

Redemption’s first roastery was at 1 Aylesbury, a young offender institute. Now the business delivers barista training in seven male prisons and a community-based laboratory. It is looking to expand to a women’s prison.

Inmates considered for the barista course are carefully vetted beforehand. Dubiel says: “We don’t really look at the criminal offence they’ve committed but the risk they present — we would never want to put our staff at risk. We look at their behaviour record and then at whether they have an interest in coffee, any background in coffee shops and where they are going to be released and when.”

Impact

Not everyone who takes the course progresses further than the initial three-week training. Dubiel says you can tell quite quickly who has the potential 1. Inmates learn to distinguish between and who “just signed up to get out of different varieties of their cell”. Even for those who do the coffee. 2. The perfect course for a change of scene, though, the “ Just three weeks of pour can take benefits can be huge. thousands of attempts meaningful activity results Bean counters to fully master. 3. Max Dubiel, co-founder of “Just three weeks of meaningful activity in less violence, less Redemption Roasters. results in less violence, less depression, depression… and a better 399 fewer incidents of self-harm and a better outlook on life, as well as better outlook on life.” inmates job prospects,” says Dubiel. have completed It’s something people who don’t know Redemption’s barista This positivity carries on outside the specialty coffee underestimate. First of training programme, prison gates. Nearly half of the adult all, it’s the knowledge about the coffee, as of March 2020 prisoners released each year reoffend where the coffee comes from, what within 12 months, but two-thirds of sort of roast level it’s got and how best those who are given education or training to prepare it. 17 will still be walking the straight and narrow a year after release. “There’s quite complicated chemistry graduates involved when it comes to brew ratios, have been employed by Inmates who shine on the course begin temperatures and extraction times if or had employment to develop an advanced level of coffee you want to extract an espresso well. facilitated by Redemption cognisance. Over three weeks they learn Then most coffees in the UK are drunk Roasters in 2019 about espresso extraction, brew ratios with milk. That’s also not as easy as it and temperatures and how to steam milk seems. Steaming milk well is difficult, to a fine micro-foam. and you really need several weeks of 7 prisons training and hands-on experience. If are working Dubiel says: “You really need exceptional someone steams the milk well then it with Redemption skills to be a good specialty coffee barista. caramelises beautifully, frothing to a Roasters

16 Rathbones Review rathbones.com Cup of cheer

2 “ We constantly tread the line between sustaining a successful, profitable business and doing good.”

were actually working seven days a week. We opened a much larger space at HMP The Mount and got a huge roaster in there. From a 50-square-metre workshop, we moved into an 800-square-metre workshop. From a roaster that could do about 12 kilos per batch (or 1.5 tons a week), we could now do 70 kilos a batch 3 (or 10 tons a week). Then COVID struck and we were literally doing all our week’s roasting in about half a day. But at least it Fair trading gave us scalability for when this is all over.”

Dubiel’s biggest concern was his staff. “When it all kicked off and our shops Redemption Roasters blends were forced to close, it was a big shock most of its coffee from Brazilian, at first. One thing that the UK government Colombian and Honduran beans. isn’t actually given a lot of credit for is In addition, it offers single-origin that its help came through so quickly, really fine micro-foam that almost has coffees in season from countries which is so important — especially in the consistency of honey and makes like Kenya, Uganda, El Salvador our industry, where you’re dealing with your flat white into something lovely.” and Ethiopia. ex-offenders. These guys are extremely vulnerable and live hand to mouth. Successful graduates of the course who The business does not subscribe They don’t have savings. They have to do not find a job with Redemption are to the Fairtrade movement. Dubiel turn to some imaginative means of helped into employment elsewhere within says: “It was brilliant at making finding money if you’re only two weeks the hospitality industry. “Ex-offenders people aware of commodity prices late with their pay.” are incredibly loyal,” says Dubiel. “They in the 1990s, but we pay between work harder than anyone else, because four and six times what the For Darren, Redemption Roasters has they have to.” Fairtrade Foundation prescribes quite literally been a godsend. He says: for our coffee today. We work “It’s a good environment for me. I’m in with smaller farmers who couldn’t COVID impact society. Being around people and having afford the Fairtrade audit. a purposeful job changes your whole COVID-19 has inevitably been a serious outlook on life. The mindset from my old blow to the business this year. It came “It’s eye-opening to see how life is gone. I feel like I’m making amends.” just after a successful funding round in coffee provides entire livelihoods December and the opening of a new, much and how much manual labour goes bigger roastery. Dubiel says: “The timing into its production. Just pouring of the fundraiser was lucky, because I away a single cup of coffee pains don’t think we would have found any me after having seen all the Visit rathbones.com/founders for investors foolish enough to invest in the manual work that’s gone into more stories of founders and their hospitality business a few months after it. every single bean that’s made it.” remarkable businesses, including Hotel Chocolat, Emma Bridgewater and Mowgli. “We were at complete capacity at our Redemption’s original roaster in action at

Images: Redemption Roasters, Nattika/Shutterstock Roasters, Images: Redemption previous roastery in Aylesbury — we Aylesbury, a young offender institute.

rathbones.com Rathbones Review 17 Home comforts?

Health, appreciates both sides of the Home comforts? coin. This year, alone in his own property for almost six months, he has written Cabin Fever: Surviving Lockdown in the Working from home rather than in the office was once Coronavirus Pandemic. “Florence regarded as the preserve of a fortunate few. COVID-19 and Nightingale was able to accomplish more from her bed than most people could lockdown have now democratised the concept, but are we accomplish in a traditional office,” he witnessing an authentic new normal or an exigent fad whose says, “but for many individuals the relevance and appeal will fade over time? impact of prolonged confinement may lead to a home environment that can just as easily resemble a prison as it can Harveer Mata, Investment Manager, Rathbones a sanctuary.”

n 2019, in his role as the world’s “ There is already a growing A dream come true? first professor of health humanities, IPaul Crawford co-authored Florence suspicion that what might Confronted by the apparent monotony Nightingale at Home, an exploration of strike us as novel and and perceived rigours of office life, most how the founder of modern nursing of us will at some point have dreamed achieved many of her greatest feats while refreshing today could of working from home. We will have bedridden with a condition contracted prove less appealing over fantasised about trading a tedious during the Crimean War. Little did he commute and a nine-to-five regime for know that less than a year later, thanks the longer term.” the comfort of our own abode and the to COVID-19, working from home would elasticity of a self-imposed timetable. become a new normal for millions of us. novel and refreshing today could prove We will have yearned to abandon our less appealing over the longer term, chairs, desks and suits and instead As this trend has accelerated, several with unhappy consequences both for embrace our sofas, laptops and pyjamas. major companies have already indicated the economy and for our basic notions that their staff need never return. PwC of humanity and social cohesion. Few of us, though, will have expected chairman Kevin Ellis has declared that these longed-for privileges to be granted “lockdown has done away with Viewed in this light, the shift to remote in such abrupt and extraordinary fashion. presenteeism”, while one major employer working does not constitute a classic Working from home is one of the most in the City has hailed a “rethinking of the instance of crisis giving rise to positive prolific new normals to emerge from rulebook on flexibility”. change: rather, it represents a salutary the COVID-19 pandemic, and suddenly illustration of the old axiom that you the office has rarely — if ever — looked But does it automatically follow that should be careful what you wish for. So more passé. the future lies in remoteness, cloud which, if either, is true? computing and video conferencing? According to research by Morgan Stanley, Maybe not. There is already a growing Crawford, director of the Centre for UK workers have been reacquainting

suspicion that what might strike us as Social Futures at the Institute of Mental themselves with their in-trays at a slower Vectors/GettyImages Images: JDawnInk/DigitalVision

18 Rathbones Review rathbones.com Home comforts?

100% 100%

100% 100%

rathbones.com Rathbones Review 19 Home comforts?

rate than their counterparts in other “ The crisis has shown that Reality bites major European countries. Only 34% of British white-collar employees surveyed more jobs could be All these findings seem to indicate that in July had returned to the office, successfully done remotely many people, having at last enjoyed a compared with an average of 68% for long-awaited taste of it, prefer remote France, Germany, Italy and Spain. if the right conditions are working. Above all, they welcome the met, but it is also true that freedom that comes from controlling their Similarly, ManpowerGroup, a specialist in own work environment, conditions and staffing and talent management, reported human interaction can be schedule. Studies have repeatedly linked ‘negative sentiment’ about going back important.” working from home with increases in job to work among 73% of UK employees. satisfaction and individual productivity. The analysis, published in August, revealed this level of disinclination to There can also be benefits for employers. be unmatched elsewhere in other large While reduced spending on office space European economies and equalled only is the most obvious, research has in the US. suggested that employees are likely to be more committed to their work, which Estate agents have also identified trends should result in lower staff turnover, and that appear to demonstrate a reluctance more efficient, which should contribute to resume old routines, with Rightmove to enhanced profits. recording a major post-lockdown surge in city dwellers looking to relocate to But there are also disadvantages. Take rural areas. “The most popular village the experience of Stanford University moves are still within the same region economist Nicholas Bloom, author of a the home-hunters are currently in,” says widely cited study that found home- Rightmove founding director Miles based call-centre staff to be 13% more Shipside, “as it’s likely they’ll keep their productive than their office-based peers: in current job but may have more May 2020, five years after his seemingly flexibility to set up their working space prescient findings featured in theQuarterly at home.” Journal of Economics, he ruefully admitted

Point of no return 80%

Published in August, research 70% by ManpowerGroup revealed the extent of UK workers’ reluctance to go back to their 60% offices. The study questioned 8,000 employees around 50% the world, asking if they had positive and/or negative 40% sentiments about the prospect of returning to work. 30%

Positive sentiment 20%

Negative sentiment 10%

0% Source: ManpowerGroup, August 2020 UK US France Spain Italy Germany

20 Rathbones Review rathbones.com Home comforts?

to The Atlantic that his own productivity employees and employers alike face during lockdown was being dented by tricky choices. his children’s bagpipe lessons. The tech-sector paradox “The overall picture is mixed, to put it The reality, as Bloom discovered, is that mildly,” says Nottingham University working from home — like working in Business School’s Professor David Falzani, The home working challenge an office — is not for everyone. Many a venture capitalist and the president of is not new to some sectors. In people are likely to miss their colleagues, the Sainsbury Management Fellowship. the 2000s, reflecting their authentic collaboration, a sense of “I know of a company that secured a more relaxed approach to belonging, a creative spark, guidance, 10-year lease on a new office in corporate culture, fledgling banter, gossip, team spirit, a reliable anticipation of doubling in size. Now it’s tech giants such as Yahoo and broadband connection, a true feeling of struggling to figure out what to do, because Google encouraged employees work-life balance, even office politics. the staff aren’t keen to go back to ‘the old to abandon the office — but ways’. I know of a company that’s set to more recently, before the Dr Ekaterina Nemkova, of Paris’s IÉSEG save hundreds of thousands of pounds a pandemic struck, they brought School of Management, recently carried year by going completely remote. And I everyone back again. out a study of designers exclusively know of a company that plans to reliant on digital platforms. She found reduce its office space by 50% through This may explain why Microsoft that many have “feelings of despair and hot-desking. As ever, there are risks and CEO Satya Nadella recently anger” and think of their working lives as opportunities.” warned against “over- “devoid of meaning”. “The COVID-19 celebrating” any perceived crisis has shown that more jobs could be Given this confusion, further surveys productivity gains from remote successfully done remotely if the right about happiness and productivity might working. What he really missed, conditions are met,” she says, “but it’s be taken with a pinch of salt for the time he told the New York Times, also true that human interaction can be being. It may be natural to enthuse about was genuinely “connecting” important.” working from home now, but the idea with his colleagues. “I feel might not be so attractive after another we’re burning up some of the Confusion and caution six months or so — especially when some social capital we built up,” he efforts to ensure that productivity is said. “Where’s the measure Policymakers spent much of late summer maintained, such as accessing employee for that?” using both economic and emotional webcams, could be seen as draconian arguments to encourage workers to intrusions. The irony, of course, is that return to their offices. Bank of England these companies, whose governor Andrew Bailey reportedly All things considered, it may be that we technology makes home expressed his shock at the deserted have not yet found a genuine new normal. working possible, are now scenes encountered on his daily drive to At least for some of us, sofas, laptops ideally positioned to profit Threadneedle Street. Fearing vacant real and pyjamas could turn out to be every from everyone else burning estate, plummeting rents and the collapse bit as susceptible to the Groundhog Day up their own social capital. of small businesses desperate for footfall, effect as chairs, desks and suits. It is still Mayor of London Sadiq Khan lamented too early to say, and for now we would that remote working presented “a big be wise to proceed with care. problem” for the capital. A resurgence in COVID-19 infections then brought a “The key message at this stage is simply dramatic change in sentiment in early that remote working doesn’t suit autumn. Amid continued uncertainty, everybody,” says Crawford, “and that’s why the liberation that we expect from “ It may be natural to enthuse working from home should be met with great caution. The potential damage about working from home from spending long periods without now, but the idea might flesh-and-blood sociality needs to be not be so attractive after carefully factored into all post-pandemic innovation, because the home can prove

Images: Steven Amani/Alamy, Andrey_Popov/Shutterstock Amani/Alamy, Images: Steven another six months or so.” both sweet and sour.”

rathbones.com Rathbones Review 21 The next-gen network

What is 5G?

The 5G stands for ‘fifth generation’ cellular wireless — the next step up from 4G next-gen network technology. How does it work?

Operating on the same mobile networking network principles as 4G, 5G taps into higher, short-distance frequencies that older 5G is being rolled out across the technology cannot access. There are three frequency bands — low, mid and UK. Some say it will revolutionise high — providing a range of speeds. life as we know it, while others fear it will damage our health Experts estimate that 5G could provide download speeds 10-20 (and some say and threaten national security. eventually a hundred) times faster than Here we try to answer the those of 4G. It will also reduce latency need-to-know questions about — the time it takes for a device to make the new network tech.

Adam Drummond, Regional Director, Rathbones Images: Cavan Images/Alamy Images: Cavan

22 Rathbones Review rathbones.com The next-gen network

a request and receive a response from a “ 5G could provide hackers, too. It is only as secure as the server — to almost zero. There will be weakest link, and if there are more links increased bandwidth, meaning the download speeds… up then there are more vulnerabilities. If network can handle more connected to a hundred times faster 5G enables smart cities and self-driving devices. cars, as expected, what happens if a than those of 4G.” hacker crashes the system, shuts off a How will it change the world? city’s water supply or takes control of area with close access to transmitters delivery drones? Aside from providing faster connection, — yes. If you live on a farm 10 miles 5G is set to advance several industries. from your nearest neighbour — probably The US’s anxiety about Chinese tech not (or at least not yet). firm Huawei’s involvement in the Increased connectivity could construction of 5G networks is ostensibly revolutionise healthcare, especially in As 5G uses higher frequencies, which about national security concerns. time-critical situations. Wearable fitness are most effective over short distances, There are fears that through Huawei trackers may be able to monitor current a greater number of smaller transmitters the Chinese government might get health and alert doctors as soon as an — roughly the size of a suitcase — need access to intellectual property and emergency arises. Caregivers in rural or to be installed, at huge cost to phone critical communications infrastructure. remote locations could receive companies. It makes financial sense to fill real-time instruction from professionals cities with the tiny transmission towers, Is it safe? based elsewhere, meaning patients who but the commercial reality is that rural previously would have needed to uproot or remote areas are at the bottom of the News sites are full of negative public their lives and move to access care could waiting list. reactions to 5G, with some even linking it stay in their homes. to coronavirus. Transmission towers have Will it work on my current phone? been set on fire. Telecom engineers have 5G is likely to accelerate smart cities been attacked, with Openreach reporting and autonomous vehicle development. No, unless you have bought one of the 50 incidents of abuse in April alone. Cars will be able to connect not only to 5G phones released by the likes of other vehicles but to live map and Samsung and Huawei (Apple’s 5G model 5G employs the same radio frequencies traffic data, picking up information on is imminent as we write). And even if you that have been in use for decades. The road conditions, weather, accidents and have the right phone you may not get a radio waves are non-ionising, meaning upcoming obstacles. signal. The 5G network is being rolled out they lack the energy to cause cellular but is far from nationwide. damage. The highest band of 5G ‘Smart agriculture’ may even be a frequency is millimetre-wave — so weak possibility, boosting the efficiency of Who will pay for it? that it can be blocked by clothes and skin. farming by encouraging more targeted It is likely that 5G will be even safer than use of fertilisers, pesticides and water. Major phone companies will make the 4G, as the smaller transmitters will be able massive initial investment needed to to run at lower power levels. This means The Internet of Things — the network install transmitters. Some have already less radiation exposure from antennas. of devices connected to the internet — launched their networks. Eventually, is also likely to expand. It is expected to though, consumers will bear the brunt, There are many who have concerns about reach 43 billion ‘things’ by 2023. 5G will as even a handset with a basic SIM is our increased exposure to devices. The allow increased machine-to-machine likely to cost over £100 more upfront World Health Organisation has classified communication, as well as making than its 4G equivalent. all radio frequency radiation as “possibly appliances easier to control remotely. carcinogenic”, due to inconclusive What are the cybersecurity concerns? evidence that exposure causes cancer in Will it work? humans. However, pickled vegetables 5G may present a world of tech are in the same category. Cynics argue It is likely to depend upon location. If opportunities, but experts fear it will that if 5G worries you then sauerkraut you are in a densely populated urban open more windows of opportunity for should, too.

rathbones.com Rathbones Review 23 Uncharted waters

A Triton 1650/3 LP explores a shipwreck off the coast near Nassau in the Bahamas. This is the world’s lightest and most compact three-passenger production submersible. It can reach depths of 500 metres (1,650 feet).

Image: Nick Verola/Triton

24 Rathbones Review rathbones.com Uncharted waters

Uncharted waters

Four thousand people have scaled Mount Everest, tens of thousands have visited Antarctica, and even the Moon has had a dozen visitors leaping through its dust. Until recently the bottom of the ocean presented the biggest challenge to travellers. But that is all changing. Welcome to the world of deep-sea tourism.

Ian Tansley, Regional Director, Rathbones

lose to seven miles beneath the “ There are more species to Pacific Ocean surface, at the Csouthern end of the Mariana be discovered in the ocean Trench, lies the deepest point on Earth. than have ever been seen Known as Challenger Deep — after HMS Challenger, which first sounded the on land.” spot in 1875 — it is a mile deeper than Everest is high. More recently the fourth person to visit the site, American private equity investor In 2012 James Cameron became only the and undersea explorer Victor Vescovo, third person to touch its floor. The director found something more depressing — a of classic films likeTitanic , The Abyss and plastic bag. Aliens plunged solo in his deep-diving submersible, Deepsea Challenger. In 2019 Vescovo completed a record- breaking expedition to map and visit This is a world that sees no sunlight. the bottom of all five of the world’s oceans Temperatures are freezing, and the in his British-designed submarine, pressure is immense — the equivalent of Limiting Factor. 291 fully loaded jumbo jets on your head. Research and tourism But even at the bottom Cameron found life. He recorded sightings of small Soon visiting the ocean bed may be as amphipods — shrimplike bottom-feeders. common as climbing Everest — Scientists studying footage from his something Vescovo has also done. Isle voyage believe they have also identified of Man-based Eyos Expeditions helped a new species of sea cucumber — “like a Vescovo fund another expedition in fat worm with long feeding appendages”. June this year to take seven more people

rathbones.com Rathbones Review 25 Uncharted waters

to Challenger Deep in individual trips. Join the superyacht navigation and sonar or laser scanning. At least one of them paid $750,000 for sub club They will each complete one nine-to- the privilege. 10-hour dive to the historic wreck with a pilot, a scientist or a Titanic expert This was the first time the general Submarines are becoming a and two other tourists. They will pay public has been offered tours into the must-have accessory for $125,000 for the opportunity. ‘hadal zone’, the murky depths of superyacht owners. Aston Martin 20,000 feet and further beneath the has joined forces with specialist Space parallels waves, named after Hades, Greek god manufacturer Triton to build of the underworld. state-of-the-art submersibles for Deep-sea exploration may be becoming the luxury world, promising “all more common, and no-one has ever Slightly more mass-market, another the performance, beauty and been killed in a modern deep-sea company is offering to take five crew elegance one has come to expect submersible. But the risks are still there. at a time on its new vessel, Titan, to from the British marque”. Trips are always unpredictable. visit the Titanic, some 12,500 feet below the surface of the Atlantic, in The submersibles make extensive Cameron’s famous voyage was supposed 2021. Titan, a 22-foot-long submarine use of transparent acrylic in the to give him a six-hour stay on the ocean that has a five-inch-thick carbon-fibre pressure hull to give the pilot and floor. It was curtailed to three after a shell, can dive to 13,000 feet. two passengers visibility in every hydraulic fluid leak caused the loss of direction. And they are designed the submersible’s starboard thrusters. Stockton Rush, founder and CEO of to stow easily, so as not to take up OceanGate, which is organising the six- too much precious deck space. Rush has been trying to run a trip to week trip, wants to combine research the Titanic for a couple of years. His and tourism. He says: “That was how The Triton 1650/3 LP offers first bid was thwarted by lightning, the exploration was funded in the past — owners 12 hours below water in second by ship problems. He hopes through wealthy donors. Every dive a climate- and temperature- next year will be third time lucky. we do has a mission. On the dive to controlled cabin, with hand- RMS Titanic scientists and citizen stitched leather seats and an Explorers repeatedly compare explorers will collaborate to survey and integrated sound system. It will themselves with astronauts — they call document the world’s most famous take you to depths of 1,650 themselves aquanauts. Indeed, the first shipwreck. The scientific goals include feet. And if money is tight then a woman to visit Challenger Deep this year assessing wreck decay, surveying marine second-hand model can be had was NASA veteran Dr Kathy Sullivan life and creating archaeological maps. for just $3.3 million. — also the first woman to walk in space.

“We recognise that this historic site is Even luxury car a memorial, and we are committed to manufacturers are undertaking our mission with great going underwater. respect for those who lost their lives Targeted at superyacht during the tragic sinking in 1912. We owners, this will not disturb the site or remove submersible has artefacts.” the design and luxury you would Each week nine tourists will join the expect from Aston Martin’s expedition crew and be trained as involvement. what Rush calls “mission specialists” to carry out dive support roles, like “ Everyone who travels into space and who has the good fortune to travel beneath our oceans becomes an environmentalist.” Images: Project Neptune/Triton, iStock, Reeve Jolliffe iStock, Reeve Images: Project Neptune/Triton,

26 Rathbones Review rathbones.com Uncharted waters 0-600 feet: 90% of ocean life lives here 820 feet: Dive depth of a nuclear submarine 1,090 feet: Deepest recorded scuba dive

3,280 feet: Last trickle of sunlight (midnight zone)

6,600 feet: Anglerfish Above left: Limiting that exists nearly seven Jim Delgado, once the chief Factor — a world-beating miles below the ocean scientist mapping the Titanic, two-person vessel surface. Above right: says: “What we’re doing is tapping designed to withstand the Explorer Victor Vescovo 9,816 feet: into the final frontier. Beneath the crushing water pressure boards Limiting Factor. Deepest-diving whale ocean I can boldly go where no-one’s gone before. I can seek out new life as “ The pressure is the well as evidence of past civilisations.” equivalent of 291 fully Rush, who has an aerospace engineering loaded jumbo jets on your degree and always wanted to be an astronaut, says: “Spaceships and head.” submarines are similar. They have to deal with some of the same challenges, Rush shares that environmental passion and believes that it is important to open 12,100 feet: like recycling air and how you go to the Average depth of the ocean bathroom.” the opportunity to more people. He says: “I had an epiphany that if I couldn’t Fragile planet be an astronaut I wanted to be an explorer. I built a two-person sub, and on my first Dr Scott Parazynski is a veteran of five dive I was just amazed at how different Space Shuttle flights. He has discovered it was from scuba diving and how 12,467 feet: Titanic’s final the thrill of deep-sea exploration and incredible the experience was. I thought resting place plans to join Rush’s Titanic trip. He says: everybody needs to go underwater. “Space flight makes you feel infinitely small. When you look back on your home “If you look at liveable volume, 98% of planet and see this beautiful orb beneath the planet is ocean. There are more you, then turn 180º and see the species to be discovered in the ocean vastness of the universe and trillions than have ever been seen on land, yet 20,000 feet and below: and trillions of stars, you realise what most of the world doesn’t know that. Hadal zone — named after Hades, an oasis our planet is. It makes you feel When I learnt to scuba dive my instructor Greek god of the underworld very appreciative and humble. would say: ‘Below 130 feet? You don’t want to go down there, because there’s “Deep-sea exploration is similar. nothing down there.’ That’s been proven Everyone who travels into space to be false. and who has the good fortune 26,831 feet: to travel beneath our oceans “So many amazing things are underwater Deepest living fish becomes an environmentalist, that it’s humbling as a human to say ever filmed (snailfish) because you realise how fragile we’ve been on this planet all this time our ecosystem is and how and we’re only now getting any kind of 29,029 feet: understanding of the deep ocean.” Mount Everest lucky we are to even be alive.” inverted

36,200 feet: Challenger Deep rathbones.com Source: Guinness World Records, National Geographic, Royal Navy and National Ocean Service Rathbones Review 27 Understanding intelligence

Understanding intelligence

Attempts to gauge intelligence have invariably invited controversy. Will the idea of being ‘gifted’ always defy meaningful metrics and, if so, are there other ways in which we might better appreciate the innate nuances of brainpower?

James Fox, Regional Director, Rathbones

28 Rathbones Review rathbones.com Understanding intelligence

“ Not everything that can be counted counts, and not everything that counts can be counted.”

— William Bruce Cameron, Informal Sociology, 1963

ike so many highbrow aphorisms, guarantees success misguided? And will the above is routinely — and we ever conceive an irrefutable means of Lwrongly — attributed to Albert quantifying what makes someone ‘gifted’? Einstein. As a pithy commentary on the science of measurement, it is especially The story of IQ suited to the long-running debate over how to assess intelligence. Alfred Binet was director of the psychology laboratory at Paris’s Sorbonne. In such a context, without wishing to In 1904 he was commissioned to denigrate the eminent Professor conduct a study that would help spot Cameron, we might well prefer to think children requiring special education. of Einstein as the originator. His place in the pantheon of supreme intellects Binet assembled a series of brief tests, is, after all, undisputed. each based on everyday problems and demanding basic reasoning. German For more than a century, in one form or psychologist William Stern, who tweaked another, the most popular method of Binet’s initial scoring system, coined the measuring intelligence has been the IQ term ‘intelligence quotient’ — IQ — eight test. Conceived in the early 1900s, it is years later. still largely regarded as superior to every alternative that cutting-edge science Crucially, Binet saw his invention only as might offer. a way of determining which youngsters might need assistance. Above all, he was In the final reckoning, though, what does averse to IQ being used to condemn a any effort to evaluate intelligence really child as without hope — an abuse that he tell us? Does it provide a rich picture of branded “brutal pessimism”. “Intellectual a person’s traits and potential or merely qualities cannot be measured as linear a one-off snapshot that cannot begin to surfaces are measured,” he warned. capture myriad nuances and possibilities? As evolutionary biologist Stephen Jay For example, while there is no evidence Gould observed in his celebrated book, that he ever took an IQ test, we do know The Mismeasure of Man, Binet’s aim was that Einstein flunked an exam. In 1895, “to identify in order to improve, not to when he applied to study at what is now label in order to limit”. Unfortunately, “ Neurodiverse individuals the Swiss Federal Institute of Technology, others thought differently. his overall grade was insufficient for a pass. frequently exhibit a Within a few years, particularly after marked mixture of So are attempts to understand what we their arrival in the US, IQ tests were call ‘intelligence’ essentially futile? Is the seized upon as a prospective means of exceptional abilities and

Image: Gary Waters/Ikon Images/Science Photo Library Gary Waters/Ikon Image: presumption that intellectual prowess social engineering. It was proposed in patent weaknesses.”

rathbones.com Rathbones Review 29 Understanding intelligence

some circles that respondents recording “ It may be that what we call This phenomenon contradicts many the lowest scores be funnelled into lives long-established precepts of ‘intelligence’. of drudgery and those recording the ‘intelligence’ forever defies A vital contention is that neurodiverse highest be singled out for advancement truly meaningful individuals frequently exhibit a marked and opportunity. mixture of exceptional abilities and measurement; yet this is patent weaknesses — for instance, an Today’s IQ tests are designed to be much not to say that we cannot enhanced facility for focusing on difficult more multifaceted and are certainly not tasks and a conspicuous lack of empathy. used for the mass reordering of society. continue developing our Nonetheless, many people’s opinion of understanding of it.” Consider one of Einstein’s peers, Paul them might still be best encapsulated in Dirac. He was so oddly disconnected from Christopher Hitchens’ claim that there prefrontal cortex — in other words, the those around him that he once silently exists “an unusually high and consistent part of the brain towards the front-left of listened to two students’ painstaking correlation between the stupidity of a the head — ‘directs’ the rest of the mind. elucidation of their hypothesis and given person and a propensity to be then, as they braced themselves for his impressed by the measurement of IQ”. Scanning has also been used to detect perceptive critique, simply asked if they the volume of grey matter and to show could direct him to the local post office. Novel approaches and neurodiversity which regions of the brain excel at which “I have trouble with Dirac,” Einstein challenges. Researchers hope that this admitted. “This balancing on the dizzying Are there alternatives? Two forms of could reveal more about how, when and path between genius and madness is scanning, magnetic resonance imaging why particular processes associated with awful.” (MRI) and positron emission intelligence connect with each other. tomography (PET), have recently been The many faces of ‘intelligence’ gaining momentum in the research Even the experts conducting them community. concede that these studies are in their So Einstein failed an entrance exam but infancy. However, such state-of-the-art went on to formulate perhaps the most At Washington University in St Louis, approaches may eventually tell us more celebrated theory in the history of Missouri, experiments have found that about what is now commonly referred science. And Dirac — now believed to around 10% of differences in intelligence to as neurodiversity — the neural have been profoundly autistic — was can be ascribed to the strength of specific variations that affect learning capacity, almost incapable of human interaction neural pathways in the brain. The findings attention span, sociability, mood and but, like Einstein, won a Nobel Prize for to date suggest that the left lateral other mental functions. his revolutionary thinking.

It seems realistic to infer, as is now widely acknowledged, that those whose promise might not be immediately apparent can be capable of greatness. But is it also possible that those whose promise appears manifest can fall woefully short of expectations?

One of the most important insights into this question emerged almost 50 years ago at what was then the Administrative Staff College in Henley-on-Thames — now Henley Business School. It was there that management consultant Meredith Belbin embarked on his groundbreaking research into collaboration in the workplace.

An improved understanding of intelligence is already redefining our notions of how the brain continues to Belbin devised a range of ‘business

develop and how lifelong learning can help us stay more active and productive. games’ to analyse management teams iStock Image:

30 Rathbones Review rathbones.com Understanding intelligence

in action. One pitted a so-called Apollo Different people, our forties or fifties. This broadly fits Team — named after NASA’s space into the accepted three stages of life — programme, a renowned hotbed of different gifts education, work and retirement. talent — against teams less obviously blessed with the brightest and most Meredith Belbin’s pioneering However, these stages do not necessarily highly qualified members. research challenged long-held coincide with the idea of ‘fluid notions of ‘intelligence’ and intelligence’, which refers to our aptitude It was soon discovered that the propelled the idea of diversity for learning new skills, and ‘crystallised Apollo Team, contrary to intuition beyond considerations such intelligence’, which refers to our and expectation, regularly lagged as gender and race and into accumulated wisdom. In a new book, behind its rivals when playing Belbin’s the realms of skills, thinking The New Long Life, London Business ‘games’. The problem, Belbin realised, and creativity. Belbin outlined School academics Andrew Scott and was that ‘intelligence’ alone was nine ‘team roles’: Lynda Gratton argue that demographic insufficient to enable it to work as a trends clearly lend themselves to unit: in the absence of other skills, Resource investigator exploiting this distinction by remoulding prodigious potential did not translate Uses inquisitive nature and education as a lifelong process. into performance. networking to find ideas and bring them back to the team The key to teaching old dogs new tricks, This finding contributed to Belbin’s say Scott and Gratton, is to keep teaching Teamworker fundamental conclusion, which has them. This, in turn, has implications for Helps the team gel, using versatility increasingly shaped the sphere of our working lives: we can all carry on to identify and complete tasks business ever since: the most effective making a significant contribution if teams are those that bring together Coordinator employers and legislators recognise — and different kinds of people. Outlined in Focuses on the team’s objectives, maximise — the combination of fluid and his seminal book, Management Teams: delegates duties and seeks equity crystallised intelligence that everyone Why They Succeed or Fail, this within the team possesses. represented a landmark in the cause of Plant diversity in the workplace. It may be that what we call ‘intelligence’ Highly creative, inventive and forever defies truly meaningful adept at solving problems in Beyond measurement measurement; yet this is not to say that unconventional ways we cannot continue developing our Today, as our concept of ‘intelligence’ Monitor evaluator understanding of it. We can see this in becomes more sophisticated, new Strategic, discerning and able to the pride of parents who appreciate that ideas are further refining the thinking offer impartial judgments and their children can be gifted in countless of companies, individuals and even logical perspectives ways and that even genius can policymakers. One is that we should sometimes be a burden; in the policies Shaper pay much more heed to how intelligence of organisations that treat diversity not Delivers the drive required to alters over time. just as a matter of gender, race and other ensure that the team maintains patent distinctions but as a matter of momentum and focus Generally speaking, research and ‘invisibles’; and in the spread of attitudes experience indicate that our speed of Implementer that, reflecting Binet’s formative ethos, calculation peaks when we are in our Draws on practical thinking to plan endeavour to use metrics — however late teens, that our short-term memory a workable strategy and provide inadequate they might be — to help rather is at its sharpest when we are in our what the team wants than to hold back. thirties and that our emotional Completer finisher intelligence maxes out when we reach Ultimately, the true measure of anyone’s Most effectively deployed at the brilliance or otherwise is unlikely to lie end of tasks to apply ‘polish’ and in an isolated score, ranking or data ensure quality control “ While there is no evidence point. It can be gauged only by his or her that he ever took an IQ Specialist achievements over the entire course of test, we do know that Single-minded, self-starting, a life. So it was for Einstein and Dirac; dedicated and able to bring in-depth and so it should be, given the chance, for Einstein flunked an exam.” knowledge to a key area of a task all of us.

rathbones.com Rathbones Review 31 Managing your digital legacy

n 2019 a YouGov survey found that only 7% of people want their social media Managing Iaccounts to remain active after they die. However, it is estimated that by 2100 there could be 4.9 billion dead users on Facebook your digital alone. With the growth of online storage solutions, many items of sentimental value, such as legacy family photographs, are now stored only ‘in the cloud’, potentially causing difficulties and stress for executors, family members and Lockdown has increased the amount of loved ones. time we spend using our phones and computers. As more of our music, photos A 2017 Law Commission report entitled Making a Will identified no consistency of and documents end up stored online and approach to the problem in the terms and shared through social media platforms, conditions of service providers.

there is growing unease about what happens What are digital assets? to these digital assets when we die. There is no formal definition of digital assets Matthew Barnett, Partner, and Jessica Brittain, Associate, in English law. It can often be helpful to Edwin Coe LLP consider digital assets as falling into one of three categories:

— Financial value (online bank, shopping, betting, forex and investment trading accounts, PayPal and cryptocurrencies)

— Social value (social media accounts, like Facebook, Twitter and Instagram)

— Sentimental value (digital photos, iTunes library and YouTube account).

Generally, digital assets with financial value are legally owned by the individual and can pass in accordance with a will to the intended beneficiaries. Where these assets have a financial value, this must be calculated and included in any inheritance tax assessment on death.

In contrast, the situation for digital assets with social or sentimental value is less clear. Sentimental digital assets, such as personal photographs stored electronically on smartphones, tablets and computers, fall within your estate.

However, gaining access to content on these devices after death can cause practical challenges. Device manufacturers are not

inclined to grant access to third parties, even iStock Images: N.Z.Photography/Shutterstock,

32 Rathbones Review rathbones.com Managing your digital legacy

law enforcement agencies. Apple has “ Keeping your digital affairs Who can access my digital assets if I famously defended this position against lose capacity? the FBI on a number of occasions. in order should be part of your day-to-day financial Separately, it is worth considering who The ownership of digital assets with you would want to look after your social or sentimental value that are stored housekeeping.” affairs, including your digital life, on or accessed via an online account or during your lifetime if you do not have cloud service is regulated by the contract mental capacity. LPAs can be prepared, or the terms and conditions of use Head in the clouds appointing attorneys to protect your between the individual and the service financial and personal interests in such provider. circumstances. There are two types of LPA: one covering property and finance In some cases the right to use the content decisions, the other covering health and/or service will terminate on death Seven out of 10 On average, UK and welfare decisions. and therefore cannot be passed to UK adults now adults have spent beneficiaries. In other cases providers make video calls over four hours a Property and financial affairs LPAs will allow access to executors with a suitable at least once a day online since grant your chosen attorney authority to grant of probate, individuals with a court week. lockdown. deal with digital assets that have financial order or individuals appointed to manage value (for example, online bank accounts the asset on death, such as Google’s Source: Ofcom and online shopping). Among other Account Manager and Facebook’s Legacy — When preparing your will, consider things, health and welfare LPAs empower Contact options. how you would like your digital assets the attorney to deal with the donor’s dealt with and whether your chosen social and leisure activities. There are Practical tips executor has the ability to access and differences of opinion in the legal world deal with them in accordance with as to whether this authority extends to Given the variety of types of digital asset your wishes and the relevant law. social media accounts. This will be and how they will be treated on death, subject to the relevant terms and there are various sensible steps you — Consider preparing a separate letter conditions of each social media platform. can take to try to ensure the smooth of wishes in relation to your digital transmission of these assets when you die. assets. It is beneficial to set out your Conclusion wishes in a private letter accompanying — Prepare a private, hard-copy inventory your will. The letter should address Digital assets pose a number of of all your devices and accounts with whether you would like any or all of difficulties for English succession law, logins and passwords. Include your digital assets to pass to specific which has certainly not kept up with details of any ‘keys’ or ‘wallets’ for beneficiaries on death and whether our ever-increasing online dependence. cryptocurrencies, as without them you would like any or all social media The best advice is that you should not valuable assets may be lost. Try to or online accounts to be deactivated delay putting your digital affairs in order. maintain and regularly update this or memorialised. As well as the legal and tax consequences inventory and store it with your of having a digital estate, the practical solicitor (with your will) or with your — Familiarise yourself with service administration of such assets can cause private papers. Include instructions providers’ terms and conditions a great deal of stress for your executors that devices and accounts are to be regarding what happens on your and loved ones. Keeping your digital accessed only by either your executors death. Some social media websites affairs in order should be part of your after death or your attorneys under allow executors limited access to day-to-day financial housekeeping. any registered Lasting Power of memorialise an account. Others Attorney (LPA) in case of mental offer you the option to nominate a incapacity. Do not share these details legacy contact during your lifetime. during your life. This is particularly important in relation to social media — Where your rights of ownership of the accounts, whose terms and conditions assets terminate on your death, as in often prohibit the disclosure of login the case of various cloud-based photo details and passwords to third parties. storage facilities, you should consider backing up your most important — Consider consolidating your digital digital content on an external hard Matthew Barnett, Partner and Jessica assets by closing any unused accounts. drive or similar physical storage device. Brittain, Associate, Edwin Coe LLP

rathbones.com Rathbones Review 33 Buying time

Roger W Smith Watches produces only around a dozen examples a year. Prices can reach up to a quarter of a million pounds.

34 Rathbones Review rathbones.com Buying time

Buying time

Luxury watches increasingly retail for tens of thousands, million today? More broadly, why are hundreds of thousands and even millions of pounds. some watches so expensive and why do so many of them not only maintain their Many only increase in value when sold second-hand. value but become ever more desirable? Is this simply because they are exquisitely made or are other forces at play? The veteran’s never-worn nest egg may perfectly encapsulate the two sides of the explanation. On the one hand — no Nicholas Hall, Investment Director, Rathbones pun intended — it is a matter of tangibles, such as materials, engineering and craftsmanship; on the other, it is a matter of intangibles, such as prestige, self- n 1974, while stationed in Asia, a expression and emotion. US Air Force mine-clearing expert Iordered a watch through his base’s Traditionally, of course, it is suggested post exchange, the standard conduit for that you cannot put a price on elements servicemen and servicewomen wishing such as those in the latter camp. But to obtain consumer goods. He paid the reality, as the ever-flourishing watch $345.97 — roughly a month’s salary market’s many devotees will readily — and took delivery the following year. attest, is that we do.

His purchase was a Rolex Oyster Ticking all the boxes Cosmograph, otherwise known as a Daytona. He had seen something One of the most fascinating things similar adorning the wrists of several about an expensive watch is that, pilots employed by Air America, the strictly speaking, it might not perform airline covertly operated by the CIA its primary function any better than a during the Vietnam War, and he knew cheap counterpart. Rightly or wrongly, from the outset that it was a fine watch. some sceptics would argue that it may The Heuer Monaco has been iconic ever since even be inferior in this respect. However, it quickly proved to be much Steve McQueen wore one in his 1971 motor-racing more than that in his eyes. It was, he film, Le Mans. After all, humble battery-powered watches decided, simply too beautiful to wear. tend to be pretty precise — at least over Unwilling even to remove the foil sticker “ Factor in advertising, the short-to-medium term — whereas from its rear casing, he eventually locked branding and other mechanical watches, which are typical of it away in a safety deposit box — where, the high-end bracket, require winding with all its packaging and documentation, generators of kudos and and might thus be more prone to losing it stayed for the next four decades. you have what could be a second or two. Meanwhile, automatic watches, which do away with batteries In January this year it at last re-emerged regarded principally as a and winding alike, often still rely on to appear on an episode of the American status symbol.” components that legendary horologist version of Antiques Roadshow, where it Abraham-Louis Breguet first conceived was duly hailed as probably the most to his feet and mumbling: “You gotta be more than 200 years ago (see Ahead of original example of its kind and valued kiddin’.” his time, page 36). at up to $700,000. Amid gasps from onlookers, its owner — a man supposedly How can a timepiece bought for a few Luxury watches might therefore be accustomed to bombshells — crumpled hundred dollars nearly half a century viewed as distinct from, say, luxury

Images: Jewellery specialist/Alamy, Pictorial Press Ltd/Alamy specialist/Alamy, Images: Jewellery to the ground before slowly getting back ago be worth almost three quarters of a cars or luxury hi-fi systems. A luxury

rathbones.com Rathbones Review 35 Buying time

Notwithstanding Breguet’s enduring influence, you are also paying for research and design — as illustrated, for instance, Ahead of his time by Richard Mille’s RM 001 Tourbillon. When it was launched in 2001, attracting Abraham-Louis Breguet invariably high-profile ‘ambassadors’ such as tennis features in experts’ lists of the ace Rafael Nadal, it drew on innovative greatest-ever watchmakers. He techniques more commonly found in more often than not tops them. Formula 1 and the aerospace sector, Born in 1747 in Neuchâtel, then a among them cutting-edge particle-binding Prussian principality, he entered processes and the use of titanium parts. the world of horology at the age of An RM 001 sold for almost a quarter of 15 after his family moved to France. a million pounds at auction in 2016.

His glittering career was punctuated Finally, you are very likely paying for

by landmark breakthroughs, many Breguet’s Marie-Antoinette is widely considered exclusivity. There are precious few of which are still used today. He the Mona Lisa of the watch world and has been unworn Rolex Oyster Cosmographs invented the self-winding watch, the valued at $30 million. — hence Antiques Roadshow’s vertigo- minute repeater and the tourbillon inducing appraisal. A Lange & Söhne — a cage that protects against the “ On the one hand, it is a Grand Complication, each example of possible negative effects of gravity matter of tangibles, such as which contains almost 900 moving parts by regularly rotating a watch’s entire and is fashioned over the course of a movement. materials, engineering and year at the company’s HQ in Glashütte, craftsmanship; on the other, Germany, costs around $2.5 million. A His crowning glory, though, is unique iteration of Patek Philippe’s World indelibly associated with a revolution it is a matter of intangibles, Time, which displays 24 time zones of another sort: in 1783 he was such as prestige, self- simultaneously, fetched more than commissioned to produce a watch $4 million in 2002 and is reckoned to for Marie-Antoinette, the last Queen expression and emotion.” be worth substantially more now. of France before the storming of the Bastille. It featured every known car should handle better than a modest “The way we interact with people about ‘complication’ — the term nowadays runabout; a luxury hi-fi system should very sought-after watches is very used for any feature beyond the sound more exquisite than a £10 pair important,” says Daniel Compton, UK registering of hours, minutes and of headphones attached to an iPad; but general manager of Audemars Piguet, seconds. Unfortunately, Breguet a luxury watch, for all its fabulously maker of the acclaimed Royal Oak. took 44 years to complete it, by intricate ‘complications’, may not boast “Invariably, the question is: ‘What number which time the intended recipient a time-telling ability conspicuously am I on the list?’” Small wonder, perhaps, had been sent to the guillotine. superior to that of a less celebrated that in 2019 the annual global market alternative — or, for that matter, an for pre-owned watches, where sellers The Marie-Antoinette, as it became ever-present smartphone. So what are can register a tidy profit and buyers can known, eventually served as an you actually paying for? jump a queue, was estimated to have exhibit at Jerusalem’s LA Mayer grown to $16 billion. Institute for Islamic Art. But in 1983, Most obviously, you are paying for quality. along with a number of other It hardly need be said that an 18-carat- The world is your Oyster Breguets, it was sensationally stolen gold, gem-encrusted masterpiece whose by a burglar named Na’aman Diller. arcane inner workings have been However, any aficionado will insist that painstakingly assembled by an artisan this is only part of the story. As Antiques It remained lost until 2007, when in Switzerland should retail for more Roadshow’s resident specialist was Diller’s widow revealed that her than a stainless-steel, mass-produced quick to point out, a key reason for the husband had stored it in a bank vault model churned out at a factory in the Rolex’s jaw-dropping worth is that the in Paris. He had immediately realised Far East. In the words of Thierry Stern, Daytona is the stuff of cachet, history that it was too famous to offload CEO of Geneva-based Patek Phlippe, it and even celebrity. on the open market. Subsequently is the difference between “buying a valued at $30 million, it is now back painting and buying a TV screen Paul Newman made the model famous

at the LA Mayer Institute. projecting the image of a painting”. — if not near-mythical for some bild Dtl./Contributor/GettyImages ullstein Ltd/Alamy, Partnership Image Images: Heritage

36 Rathbones Review rathbones.com Buying time

Cometh the hour...

As the market for luxury timepieces grows, watchmaking in the UK is experiencing a renaissance. A number of specialists, including the Great British Watch Company, Robert Loomes, Wessex and Garrick, are earning increasing acknowledgment in an arena long dominated by Switzerland and Germany.

Roger Smith, of Roger W Smith Watches, has been called the world’s finest watchmaker. He insists that his Thomas Tompion (1639-1713) is clients, rather than simply wanting an expensive item, are “very technically orientated”. widely regarded as the father of British horology. One of his students, enthusiasts — by sporting his own He personally makes every part of George Graham (1673-1751), was Daytona in Winning, an otherwise every watch, and his prices range from responsible for several innovations forgettable motor-racing movie released £120,000 to £250,000. He insists that before passing the baton to in 1969. In 2017, at an auction in New his clients, far from merely wanting to Thomas Mudge (1715-1794), who York, the watch was sold to an anonymous show off, are “very technically orientated”. invented the lever escapement telephone bidder for a world-record — still the most commonly used $17.8 million. “Many people are saying Smith does add, though, that a luxury escapement today. this is the greatest watch on the planet," watch is undoubtedly a “nice-to-have” vintage Rolex collector Geoff Hess told — and this, above all, is surely what our Arguably the most celebrated Forbes. “It transcends watch-collecting. lucky USAF friend told himself before member of the current generation It transcends the watch community.” making what would turn out to be his is Roger Smith, of Roger W Smith life-changing trip to the post exchange Watches. One of the few people to Similarly, Steve McQueen, Newman’s back in 1974. Ultimately, there is an have mastered all 32 of the skills fellow Hollywood icon, immortalised the innate satisfaction in owning anything necessary to construct a watch from Heuer Monaco while headlining another nice. Moreover, should you somehow start to finish, he has often been tale of on-track derring-do, 1971’s Le fall out of love with your extravagance acclaimed as the finest watchmaker Mans. Having recently marked its 50th of choice, the prospect of losing very in the world. anniversary, the model remains the little, recouping your initial outlay or leading light in the rebooted TAG-Heuer even making a profit is likely to provide “It’s not a label I really think line-up today. McQueen’s Monaco sold no mean comfort. about,” he said when interviewed for almost $800,000 in 2012, and even in 2019. “I just get up each day battered examples of the rudimentary Nonetheless, it is vital to remember that and try to make watches you can’t Benrus military watch that the ‘king of not every luxury watch represents a find anywhere else. Being a cool’ wore in Bullitt now go for hundreds guaranteed investment. Many lose value watchmaker is all I’ve ever done of pounds on popular websites such as as soon as they are bought, just like since I was 18, and that’s where Chrono24. Such is the power of countless other goods characteristic of I’m happiest.” association. Factor in advertising, what American economist Thorstein branding and other generators of kudos Veblen branded “conspicuous Like many of his British and you have what could be regarded consumption”. contemporaries, Smith sees low principally as a status symbol. volume as a hallmark of Remember, too, however bizarre the excellence. “Companies tend to One revered industry figure who might notion might seem, that it may pay to announce their annual increase in disagree with this slightly unflattering keep your prize possession well away production as though it was a interpretation of the market is Roger from your wrist. As the Rolex’s dazed recognition of doing well,” he said, Smith, who fulfils around a dozen owner was gently warned when he had “but if I made 20 watches a year bespoke commissions a year at his regained his senses: “If you wear it, it drops I’d know something must have gone isolated workshop on the Isle of Man. down to $400,000.” Hard times, indeed. down in quality.”

rathbones.com Rathbones Review 37 How to spot online scams

How to spot online scams

Reports of online scams are at an all-time high as criminals exploit lockdown conditions. How can you distinguish a scam from a genuine offer? And how do we thwart the scammers?

Lee Wilson, Head of CRM and Digital Marketing, Rathbones

nternet usage has risen significantly victims fake services such as free pension in recent months — and exposure to reviews, pension loans or cash up front. Ionline scams has risen with it. They also persuade victims to transfer Research from Citizens Advice suggests pensions to schemes offering ‘guaranteed’ adverts frequently include a web address that between March and June alone returns. If scammers do not steal money which appears to be authentic, but letters one in three adults had been the target outright, they may hide high fees within may be switched or replaced with digits of online fraud, with those shielding or a complicated structure. — like ‘hbsc.co.uk’ or ‘barc1ays.com’. who had lost income due to the virus disproportionately affected. Phishing Along with its register of approved companies, the FCA keeps a list of But it is not only the ‘vulnerable’ who Posing as something plausible like a reported clone firms. However, the list are susceptible. Action Fraud reports bank or insurance company, scammers is not exhaustive, as new clones pop receiving online shopping fraud claims email, write or call requesting personal up frequently. Do not trust a company totalling £16.6 million since COVID- information, such as verification of just because it is not on the watchlist countering measures were imposed, with card details, online banking passwords — it may not have been reported yet. one-quarter of victims aged between or PINs. They may provide a seemingly 18 and 26. legitimate reason for doing so, such as Fake anti-virus software a report of unusual account activity. Isolated, facing health concerns and While users are online, pop-up windows struggling with financial uncertainty, Reported coronavirus-related phishing appear, which allege that viruses are many people have become ideal targets. scams include compensation offers for infecting your machine. There may be And the ‘classic’ scams have now been cancelled holidays or weddings and directions to click a button or link to joined by a new breed of COVID cons ‘government’ texts asking for payment of remove the virus but doing so can lead as fraudsters exploit fears, charitable fines for breaking lockdown guidelines. to malware being downloaded that steals natures and even bereavement. Scams personal data. More sinister is the threat can come in the form of online adverts Clone firms from ransomware, which can lock up a or direct contact by phone, email or text. computer until you pay to regain access. Companies must be FCA-authorised to Pension scams sell, promote or advise on products. Clone Look out for cold calls from individuals firms attempt to imitate a recognised purporting to work for software Since the pension rules were relaxed company online, often using an identical companies claiming to have identified in 2015, fraudsters have been offering name, logo and colour scheme. Emails or a fault with your computer and emails Images: iStock

38 Rathbones Review rathbones.com How to spot online scams

“ Isolated, facing health have been in contact with someone who has tested positive for COVID-19 and concerns and struggling that they need to pay £500 for a test. with financial uncertainty, — Double-check the URL and contact Cons that target bereaved families are details of any firm that contacts you. many people have become particularly cruel. Fraudsters posing ideal targets.” as debt collectors or inheritance — Do not rush or make decisions distributors demand repayment of based on time pressure. If an email from unknown senders with links to alleged debt incurred by the deceased conveys a tone of urgency, this is unrecognised websites or with attached or ask for payment to release often a warning sign. files to download. inheritance. — Do not send personal information by If you receive an email containing links, Warning signs and how to report email. Your bank will not ask for your hover your mouse over them (without a scam PIN or account details. If in doubt, clicking) — does the address match call your bank (on its real line, not what you would expect for the company — Reject unexpected pension or the number scammers may provide supposedly sending the email? investment offers. If considering an in a phishing email). offer, consult your financial adviser Keep verified antivirus software up to date. or look to the Pensions Advisory If you suspect a scam, report it to Service for guidance. Action Fraud by calling 0300 123 COVID-19 cons 2040 or visit its website to use the — Check the FCA register for a list of online reporting tool. ‘Good cause’ scams aim to exploit authorised firms. victims’ good nature — for example, by encouraging investment in the — Check the ‘Keeping you safe’ page If you have any concerns email manufacture of PPE. on the Rathbones website and the our investment fraud specialists FCA’s ScamSmart website, which at [email protected]. Track-and-trace scammers claim to both provide more guidance on how work for the NHS. Targets are told they to spot scams and stay safe online.

rathbones.com Rathbones Review 39 Writing in the time of corona

Writing in the time of corona

Writers have a notably solitary job, but has Winner of the Rathbones coronavirus curbed creativity? And how Folio Prize 2020 has the literary world adapted to the new Lost Children Archive normal? Valeria Luiselli In Luiselli’s winning novel, a Louise Willows, Marketing Manager, Rathbones family sets out on an epic road trip from New York to Arizona. Bonds begin to fray and the children try to make sense of the fracturing relationship between their parents. A familial crisis is set against the backdrop of a larger humanitarian one, as thousands of children attempt to cross from Mexico into the Grand Union Guest House for The Topeka School US and are either detained at Zadie Smith Young Widows Ben Lerner the border or lost in the desert. Renowned for her novels Azadeh Moaveni In Lerner’s novel, a teenager and essays, Smith joins Journalist and writer comes of age in Clinton’s “ A genuinely original and the shortlist with her first Moaveni has been covering America, in Topeka, Kansas. bravura performance of a collection of short fiction. the Middle East for nearly Lerner shifts perspectives novel: a road trip, a In Grand Union, Smith two decades. In this feat of and time periods to documentary, a portrait uses humour as a political narrative non-fiction she explore the challenges of of a family and of the force and moves across writes an intimate account raising a son in a culture of genres to create a collection toxic masculinity, creating a American borderlands, of the women who left about time, place, identity their comfortable lives to novel about communication and a journey into the idea and rebirth. join the Islamic State and and identity that is both of home and belonging.” found themselves trapped emotionally and — Paul Farley, Chair of Judges within the chaos of a brutal intellectually engaging. terrorist regime.

40 Rathbones Review rathbones.com Writing in the time of corona

n March, Paul Farley, Chair of Judges “ Giving a literary prize right give shape to words, create new thoughts for the Rathbones Folio Prize 2020, with them and find new meaning.” Idelivered the prize-giving speech now means that we believe from his Lancashire garden. “You’ll have in what we're doing.” A written response to imagine there’s a party — a podium, flutes of house prosecco, the din of “And, more than anything, I am relieved, While Luiselli eloquently articulated the assembled guests,” he said. because giving a literary prize right now importance of literature during difficult means that we believe in what we’re times, many writers have questioned The UK had gone into lockdown a week doing. It means that we believe in books their purpose while watching workers on earlier, with in-person events cancelled as the vehicles of something much greater the front line. nationwide. Rathbones Folio Prize winner than us, something that will outlive us. Valeria Luiselli accepted the award from “Almost instantly, I was aware of my her kitchen, without the audible support “Literature is always and again revealing to uselessness,” says Zadie Smith, reflecting of an audience. It was not the ceremony us in times of uncertainty and fear about on the outbreak. “Novelists always feel she deserved, as the first woman to win what we can do, what we can reach for to some degree useless, but I think it’s the prize since its inception in 2013, but inside of ourselves and in community compounded, particularly in revolutionary she used her speech to encourage and with others — a kind of fierce drive, a times.” to remind viewers of the power of books. commitment to collectively reimagine the narrative of our everydayness, to Smith reacted in the only way she knew “I am not delighted… But I am deeply work our way through despair and she could — she wrote a book. Just months grateful to receive this prize,” she said. senselessness and fear to shape words, after her first short story collection,Grand

On Chapel Sands Vertigo & Ghost Victory Constellations Laura Cumming Fiona Benson James Lasdun Sinéad Gleeson Art critic Cumming delves In the first half of Benson’s Two novellas paired In this book of essays, into the mystery of her prizewinning collection, between one cover, Gleeson takes us on a mother’s disappearance. ancient Greek mythology is Lasdun’s darkly comic journey both personal and Set in 1929, a child is transposed into a criminal stories echo each other in universal, as she tells the kidnapped from a beach and record of violence against their themes and focus on story of a life in a body. discovered five days later. women, in which Zeus is male central characters From birth to motherhood, She remembers nothing, held to account for serial experiencing conflict or sickness to death, Gleeson and the events are not abuse. The second half is crisis. His complex, driven presents a reclamation of spoken of again. Cumming an intimate, personal work explores the clash ownership of the female uncovers the secrets and document of depression between irrational desire body throughout the fierce lies with the precision of a and family life. Benson’s is and the urge for control. joy and pain of life. forensic pathologist, solving an immensely brave and a mystery decades old. graceful collection.

rathbones.com Rathbones Review 41 Writing in the time of corona

Union, was shortlisted for the Rathbones on “grew larger and more vivid while my “ I am not at all worried Folio Prize, she produced Intimations, a back was turned”. She began to see how collection of essays responding to the her art mattered, and she now believes about the future of early months of the pandemic. Proceeds in the possibility that her writing might literature, which means from sales are being donated to the “find its use in the weariness and sorrow Equal Justice Initiative and the COVID-19 of the aftermath”. we’re all going to be all Emergency Relief Fund for New York. right eventually.” Community connection “I suddenly thought of it as a way of participating, of raising money, of being The isolated nature of many writers’ Director Minna Fry says: “Readers have active,” says Smith. lives may be exacerbated by extended rediscovered the solace of books time at home. To Sinéad Gleeson, during lockdown; to retreat into, to feel Creativity in crisis however, “it sort of feels less lonely, this transported to more reassuring places, pandemic, because we all feel like we’re to provoke deep thought and to foster Smith may be an anomaly — many writers in this together”. understanding. I look forward to a rich have found their energy deflated by the seam of writing, bringing people pandemic and have hardly managed a Gleeson will judge next year’s Rathbones together over their shared experience sentence. Rather than attempt a feat in Folio Prize. Her essay collection, of a world gone awry.” the realm of Intimations, novelists Kit Constellations, was shortlisted this year. de Waal and Sarah Perry accepted their The collection covers her previous Luiselli, concluding her speech back in lack of motivation for what it was. periods of isolation due to illness. Now, March, was also optimistic. “I am not at she says, “everybody’s at risk, and we all all worried about the future of “I haven’t written anything since this have to be apart to stay better but also literature, which means we’re all going crisis started, but I know it will come to cope with what’s going on”. to be all right eventually,” she said. back,” says de Waal. Instead she is using the time to read, listen and process Despite being a typically solitary activity, She signed off with advice that still unfurling events. “There’s a lot to be reading is one way in which people are rings true today: “Make sure you have gained by not writing but by thinking.” connecting while apart. Book groups have coffee, rice, beans, pasta, wine… and a flourished during lockdown, as members bunch of really good books at home.” Perry initially experienced a more meet online to discuss texts with friends negative reaction to her own occupation, or with strangers met through forums. confronted by the same sense of uselessness that Smith encountered. Similarly, many literary events have also Rathbones Folio Prize “Even before the lockdown began, I could been moved online. August’s Edinburgh not write,” she said in an article, reflecting International Book Festival took the The Rathbones Folio Prize rewards on the early stages. “It baffled me that format of livestreamed interviews, the best work of literature of the I’d ever done such a trivial thing… Nobody discussions and award presentations. year, regardless of form — the 2020 calls for a writer when their leg is broken; shortlist included novels, poetry, nobody wants a story when they cannot While events may be somewhat subdued non-fiction, a short story collection breathe.” in the absence of guests, the move online and a book of essays. It is the only can mean greater accessibility — which, prize governed by an international Perhaps many of us not on the front line in turn, can mean a larger audience. A academy of distinguished writers felt similarly inadequate. But Perry’s book lover in Cornwall could have and critics (the Folio Academy). perspective changed over the months, watched Scottish First Minister Nicola This year judges Paul Farley, Nikita as she found her imagination churning Sturgeon interview Booker Prize winner Lalwani and Ross Raisin reviewed a away and the novel she had been working Bernadine Evaristo on a Saturday night, total of 80 books nominated by the without having to make the journey north. academy and in March awarded the £30,000 prize to Valeria Luiselli “ I suddenly thought of Great expectations for her novel Lost Children Archive. writing as a way of Critics and publishers are already Visit rathbonesfolioprize.com participating, of raising anticipating the works that will emerge to find out more. money, of being active.” from the crisis. Rathbones Folio Prize

42 Rathbones Review rathbones.com Important information

This document is not intended as an offer or solicitation for the purchase Limited which is regulated by the Jersey Financial Services Commission. or sale of any financial instrument by Rathbone Investment Management Registered office: 26 Esplanade, St. Helier, Jersey JE1 2RB. Company International Limited. The information and opinions expressed herein are Registration No. 50503. Rathbone Investment Management International considered valid at publication, but are subject to change without notice Limited is not authorised or regulated by the Prudential Regulation Authority and their accuracy and completeness cannot be guaranteed. No part of or the Financial Conduct Authority in the UK. Rathbone Investment this document may be reproduced in any manner without prior permission. Management International Limited is not subject to the provisions of the Unless otherwise stated, the information in this document was valid at UK Financial Services and Markets Act 2000 and the Financial Services Act October 2020. 2012; and, investors entering into investment agreements with Rathbone Investment Management International Limited will not have the Rathbones and Rathbone Greenbank Investments are trading names of protections afforded by those Acts or the rules and regulations made Rathbone Investment Management Limited, which is authorised by the under them, including the UK Financial Services Compensation Scheme. Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered office: Port of Liverpool Building, Pier Head, Liverpool L3 1NW. Registered in England No. 01448919.

Rathbone Investment Management International is the Registered Business Name of Rathbone Investment Management International © 2020 Rathbone Brothers Plc. Taking the next step If you want to invest with us, we’d like to speak to you

Call: 020 7399 0000 Visit: rathbones.com

Rathbones Look forward series

In a series of future-shaping films, podcasts and essays, Rathbones has brought together some of the world’s leading political, cultural and philosophical thinkers, sharing their ideas on the world of tomorrow.

To find out more and listen to the podcasts, please visitrathboneslookforward.com