The Templeof Treasure

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The Templeof Treasure FTwealth THE TEMPLE OF TREASURE WHO IS THE GUARDIAN OF THE TROVE BURIED DEEP BENEATH INDIA’S RICHEST SHRINE? BY AMY KAZMIN Sree Padmanabhaswamy Temple, India RICH AND IN JAIL GEORGIAN WINE AUCTION HOUSES BECOME TECHSAVVY WWW.FT.COMWEALTH AU TU MN 20 14 FT WEALTH SEPTEMBER 2014 THE TEMPLE EVEN HAS AN“ UN“OPENED VAULT THAT MIGHT CONTAIN YET MORE GOLD COVER PHOTOGRAPH: Hidden fortunes INDIA VIEW ALAMY Special reports editor Michael Skapinker Head of editorial content Hugo Greenhalgh Deputy editor Rohit Jaggi Production editor George Kyriakos Sub-editor Philip Parrish Art director Sheila Jack Picture editor Michael Crabtree Global sales director Dominic Good Advertising Mariam Lolavar Publishing systems manager Andrea Frias-Andrade Advertising production Daniel Lesar CONTRIBUTORS Dalya Alberge is a freelance arts journalist Daniel Ben-Ami is a freelance journalist and writer John Dizard is an FT columnist Jeremy Hazelhurst is a freelance journalist Amy Kazmin is the FT’s South Asia correspondent Maya Jaggi is a cultural journalist, critic and Buried treasure: what better way to ease yourself back into literary prize judge the September office than a tale of billions of dollars’ worth Rohit Jaggi is the FT’s aircraft, car and of emeralds and sapphires found deep in the tunnels beneath motorcycle columnist James Mackintosh is the FT’s investment editor India’s Sree Padmanabhaswamy Temple? But, as Amy Kazmin Steve McDowell is a freelance journalist reports, wrangling over the guardianship of the estimated Attracta Mooney is a reporter at Ignites Europe $22bn trove has been snarled in litigation for the past few years. Sarah Murray is a regular FT contributor Drawing in the former royal family, the tale has everything, Adam Palin is a reporter at FT Money including an unopened vault that might contain yet more gold – Matthew Vincent is the FT’s deputy companies editor but could also be cursed. Christie’s is also looking for treasure – this time through Vincent Manancourt, Rochelle Toplensky and devising better ways to engage with its clients, digitally. But Patrick Ferguson were all recent FT interns while an algorithm, explains Steven Murphy, chief executive of the auction house, is not going to tell you “whether a particular Diane Arbus print will sell”, John Dizard reports on how it will enable it to tap into new – and hopefully lucrative – markets. We are always interested in your views, so do let us know your thoughts on both these articles and the rest of this edition of FT Wealth at the email address below. YOUR NEXT Hugo Greenhalgh, Editor FT WEALTH Follow us on Twitter @FTReports [email protected] December 5 2014 4 FT.COMWEALTH CONTENTS 44 OPENINGS XX 6 INVESTMENT FOCUS News and statistics, and comment by Mick Gilligan 8 THE IDEAS COLUMN We have to hope smart beta is not another example of dumb alpha 10 THE RICH COLUMN How the villains of the wine world play on the vanity of collectors 10 FEATURES 12 CLICK AND COLLECT International auction houses are XX going through a digital revolution and devising ways to tap into the 50 preferences of their clients among the new global rich 18 A TASTE FOR TRADITION INSIGHT Georgia’s winemaking industry was crippled by Russia’s 2006-13 import 37 EQUITIES embargo. But since that was lifted, Don’t judge technology companies by a rich viticultural heritage has been their often bizarre pitches to investors allowed to flourish once again 40 WEALTH MANAGEMENT Wealth managers are having to merge 24 TROUBLE AT THE TEMPLE to survive as regulation gets tighter The Sree Padmanabhaswamy Temple 42 INVESTMENT in India is said to contain $22bn of Despite the hype, newly floated treasure, but custodianship of the companies can prove lucrative riches is mired in a long-running 44 INVESTMENT dispute between the state authorities 18 The joy and pain of owning a racehorse and the former royal family 46 PHILANTHROPY Institutional naming rights are gaining favour among wealthy donors 48 PLANNING FT WEALTH ONLINE How to soften the blow if your VIDEO financial dealings land you in jail Track record: Rohit Jaggi speeds 50 PLANNING around Brands Hatch in an attempt to Key steps to preserve wealth for your gain his racing track licence loved ones when you are gone VIDEO 56 52 BOOK REVIEW Car review: Test-driving the BMW i8 The New Class Conflict by Joel Kotkin with Rohit Jaggi 54 CAR REVIEW Rohit Jaggi drives the BMW i8 56 LIFESTYLE Road car track days www.ft.com/wealth 58 BUSINESS GURU Ofra Strauss of Strauss Group PHOTOS: DREAMSTIME; REUTERS; JENNY SOUTH FT.COMWEALTH5 InVESTMEnT FoCuS ADAM pAlIn THE roAD Consumers set to be AHEAD MICk key driver for India GIllIGAn nvestors in India have enjoyed a growth, such as information india has been one of the strongest- heady few months. The election of technology companies with global 91% performing global equity markets this prime minister Narendra Modi in markets and providers of domestic of Indian high- year. the market has risen on a wave May brought great optimism that staple consumer goods, have fallen net-worth of euphoria that both anticipated and reforms, delayed by the previous out of favour with investors. individuals view followed the electoral success of the government, would be realised. Notwithstanding concerns about driving positive Bharatiya Janata party (BJP), led by I Many analysts now see such India’s creaking infrastructure, as Narendra modi on a reformist ticket. social impact as optimism – with reforms facing stiff well as the state’s subsidy system – very important this is an encouraging development opposition in the parliament’s upper estimated to cost $43bn a year – a for investment in india, given modi’s house – as fully priced into valuations number of fund managers have SourCE: track record in the state of Gujarat, for Indian equities, which have had a increased their exposure to cyclical CApGEMInI AnD where he oversaw economic growth strong year so far. TheMumbai stock Indian businesses. rBC wEAlTH that averaged around 10 per cent exchange index, the Sensex, was up With domestic consumption MAnAGEMEnT annually during his 12-year tenure. 22 per cent from the start of 2014 to predicted to rise over the next 2014 worlD however, creating a pro-business the end of July. couple of years, companies offering wEAlTH rEporT environment on a national level is a Shares that have offered security discretionary goods and services look much bigger challenge, particularly as during the downturn in Indian set to benefit strongly. the BJP does not have control of the parliament’s upper house. another barrier to investment in india is inflation, which has not fallen below 5 per cent on a calendar year basis since 2005. Being a net importer of energy has not helped either. the stock market is taking a very optimistic view of the new administration’s ability to deliver results quickly. this is reflected in an equity market that now trades on a multiple of 16 times this year’s expected earnings. india’s strong entrepreneurial spirit manifests itself in some attractive, well-managed listed businesses and makes india an appealing home for risk-tolerant, long-term capital. $43bn however, there is a lack of dividend yield to reward the patience of the India’s annual long-term investor. this and current government subsidies high valuations mean we would temper any enthusiasm to invest too heavily in the near term. SourCE: CEIC DATA Mick Gilligan is head of research at wealth manager Killik & Co 6 |FT.CoM/wEAlTH 9.1% Fall In IndIan “ ho“uSe PrIceS In 2013, InFlatIon-adJuSted SourCE: CApGEMInI GloBAl propErTy GuIDE HouSEprICE InDEx 1.25bn Investing in... Population of India, 2013 India SourCE:worlD BAnk What is the fund? Aberdeen Asset Management’s Global Indian Equity Performance over the past three years (Indian funds, cumulative returns, fund invests in Indian equities and % to end of July 2014) companies focused on the Indian market. The £3bn fund is invested I wish I had bought across sectors, with roughly one-fifth Goldman Sachs India Equity each in financials and information Aberdeen Global technology. 19.1 Indian Equity Why should I buy it? The fund 8.6 Parvest invests in Indian banks such as HDFC Equity India and ICICI, plus companies such as car component maker Bosch (majority-owned by its German 6.9 parent), that are set to gain from an anticipated rise in domestic consumer expenditure. The fund has outperformed the Sensex benchmark for Indian equities over the past few -1.5 years, gaining 78 per cent in the five years to July. JPMorgan India A -2.1 Why shouldn’t I buy it? The perils of investing in a single-country market HSBC GIF fund – particularly in emerging Indian Equity -8.4 markets – are illustrated by Indian equities’ performance in 2011: the fund Jupiter India lost 26 per cent of its value. Given the recent volatility of the rupee, there are I’m glad I didn’t buy exchange-rate risks too. SourCE:lIppEr 22% bloomberg; afp/getty; charlie bibby; SubhaSh SharmaSe graphic: ruSSell birkett nSex Index rISe, January-July 2014 SourCE: THoMSon rEuTErS Photos: dreamstime; FT.CoM/wEAlTH|7 THE IDEAS COLUMN JAMES MACKINTOSH Get smart he financial services The latest pitch is that these returns due to behavioural issues rise to values industry has spent are available on the cheap. Rather justified by their fundamental risks. hundreds of years than paying 1 per cent a year or more Judging whether value, momentum, perfecting new and to an active manager, construct your low volatility or other factors are exciting ways of own portfolio from cheap trackers of overdone is not a science.
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