CO RRE SPONDE NT THEONLY SP EC IAL WAYISUP | IR AN | howthe 30%cluBtook ISR on thefinancial AEL estaBlishmenttowin moRe | places foRwomen on BoaRds SO UT By saRahGoRdon HS UD AN | BR AZ IL | IN VE ST IN GINA FR ICA de ce mB eR 20 15 | ft .c om /w ea ltH Issue 36 Ft WeALtH contents decemBeR @hugo_greenhalgh 30%club: the 12 next chapter On the same daythe women —and twomen —of the 30% Club gathered for our photoshoot, Lord Davies released the latestchapter in hisongoing reviewintothe representation of women on boards. Theclubhad been founded in 2010 with the express purpose of increasing the number of women in C-suite positions; Lord Davies’finalreport was keenly anticipated. After five years of work, and lobbying by the 30% Club, his findings were positive: women filling FTSE 100 board positions passed the 25 per cent “milestone” earlier this year. Anew target of 33 per cent female representation has been setfor 2020. Thenumbers stand testament to the work undertaken by the 30% Club —ateverylevel. Not only lobbying ministers and the Cityfor change, but also acting as role models for the emerging female leaders of the future. 56 Eventually,asSarah Gordon notes in her cover FeAtURes storyfor this edition of FT Wealth,its members 12 iRAnUncoveRed hope there will be no need for the club. “I’dliketo Atrial is exposing this see the 30% Club redundant and wound up,”says closed society’s links Heather McGregor,managing director of Taylor between moneyand politics Bennett,“because women on boards become so commonplace thatit’ssimply not needed anymore.” 18 tHe30% cLUB Moving from the ambitions of the 30% Club in Howwomen have the UK (although theyare keen to exporttheir taken on the old boys’ model globally), this edition also focuses on those of network of UK companyboards the wealthyaround the world, with aCorrespondent Special reporting from South Sudan, Israel,Brazil, 24 in on tHeAct Iran and the US. Arts groups are challenged to be ever more creative in wooing td Hugo Greenhalgh Editor wealthysponsors ml [email protected] il 32 moveR And sHAkeR sf ca App king UriLevine lu bloomberg; on his questtohelp mages; michael YoUR neXt Ft WeALtH s: ordinarypeople save time yi oto crabtree; 11 mARcH2016 and money ph gett 4 |Ft.com/WeALtH FT Wealth editor Hugo Greenhalgh Deputyeditor Rohit Jaggi Production editor Ruth-Lewis Coste Artdirector KostyaPenkov Picture editor Michael Crabtree 48 Sub-editor Philip Parrish Special reports editor Leyla Boulton Global sales director Dominic Good Global relationship director for banking and finance ValerieXiberras Publishing systems manager Andrea Frias-Andrade Advertising production Daniel Lesar openings Junior designer HarrietThorne 6investment FocUs Moneyisflowinginto Africa in the global hunt for yield contRiBUtoRs DalyaAlberge is afreelancearts 8 tHe RicH coLUmn writer Howatree can be for life, not Daniel Ben-Ami is deputyeditorof justfor Christmas IPE Magazine Najmeh Bozorgmehr is the FT’s 10 tHe ideAscoLUmn insigHt Tehran correspondent Asia’sapproach to learning Stephen Foley isthe FT’sUS has spawned aglobal industry 38 eqUities investment correspondent Thedebateisonastowhether Sarah Gordon is the FT’s there are assets in acronyms business editor 18 JeremyHazlehurst is founder of 40 FAmiLYoFFice Business Family Forthe wealthyinthe Middle SimoneyKyriakou is news editor of East, it is about finding abalance Financial Adviser,anFTpublication between generations JoeLeahy is the FT’sBrazil bureau chief 42 investment Louise Lucas is the FT’sAsia Thegrowth of gadgetssuch as news editor mobile phones is powering the Katrina Manson is the FT’sformer metals market EastAfrica correspondent (now on book leave) 44 pHiLAntHRopY Paul McClean is an FT graduate Thepower and efficacy trainee of altruism Neil Munshi is the FT’sChicagoand Midwestcorrespondent 46 coRRespondent:speciAL Adam Palin is areporteronFTMoney HowSouth Sudan’s wealthypark Aliya Ram is an FT graduate trainee their assets outside the country John Reed is the FT’s Jerusalem bureau chief 48 coRRespondent:speciAL MatthewVincent is the FT’sdeputy TheLucas Museum of Narrative companieseditor Artisbattling ashow of force Stephen Wilmot is companies editor at Investors Chronicle, 50 coRRespondent:speciAL an FT publication Corruption in Brazil is bringing forth awonderful displayofart CORRESPONDEN 52 donoR-Advised FUnds TS THEONLY PEC IAL Dafs are gaining in popularity WAYISUP | IRAN | HOWTHE 30%CLUBTOOK ISR with affluent altruists on both ON THE FINANCIAL AEL ESTABLISHMENTTOWIN MORE | PLACES FORWOMENONBOARDS SO UT BY SARAH GORDON HS UD sides of the Atlantic AN | BR AZ IL | INVE ST IN GI NA 56 investment pAssions FRICA Building assets in music DECE MBER 2015 | manuscripts and instruments FT .C OM/WE AL is beginning to resonate TH ISSUE 36 58 AmBitioUsWeALtH Complexities of modern coveRpHotogRApH philanthropy and the fraught dAnBURn-FoRti issue of naming rights AssistAntsAm WRigHt Ft.com/WeALtH|5 AFRICA FOCUS ADAM PALIN @adampalin THEHUNTFOR YIELD ften described as the final frontier of global investing, Africa promises investors the possibilityofrapid Oeconomic growwth fuelled by its young population and vast natural resources. Critics, however,point to poor corporategovernance and widespread corruption thatdeter investments 182m in the continent’svolatile markets. Nigeria Among sub-Saharan countries, only South Africa, home to the continent’s largeststock market,isconsidered an emerging marketbyMSCI EM index. Investment and liquidityrisks notwithstanding, moneyisflowing into Africa in the global hunt for Sub-Saharan In Africa, thereis... yield. In 2014, the region was the world’s fastest-growing destination for Africa GDP growth foreign direct investment, according to 7.6% research by FDIIntelligence. Global oil reserves Forindividual investors, there are 5.0% agrowing number of Africa-themed 2014 funds, offered by the likes of Investec 5.8% and Templeton,thattend to focus on larger economies such as Kenya and 3.75% Global energyproduction Nigeria. 2015 (forecast) Global companies listed on more established exchanges thatcentre on 3.2% the continent, such as London-listed Global energy consumption brewer SABMiller,can also offer $87bn 4.25% lower risk playsonthe rise of African Foreign direct investment 2016 (forecast) consumption. in Africa in 2014 Thefateofthe continent’s growth in the near future, however,remains peggedtoglobal commodityprices. 14% Oil production Itsdependenceonprimarygoods is of global total (barrel/day) illustrated by downgraded IMF growth forecasts for 2015. There is little doubt thatAfrica investors mustcommit Largest according to FDI Nigeria Angola themselves for the long term. Frenchenergy company Totalplans to invest 2.4m 1.7m 20m $16bn M-PesausersinKenya to develop the Kaombo (from a46m population, 2015) offshoreoilfield in Angola 6 |FT.COM/WEALTH GRAPHIC BY RUSSELLBIRKETT Sub-Saharan Africa Sub-Saharan 23 fiscal balance forecasts Africa inflation forecasts number of stock exchangesinAfrica -4.3% 6.9% 2015 2015 84,000km -3.6% 7.3% Distance of African railways 2016 2016 1.19bn FTSE/JohannesburgStockExchange African population All-ShareIndexperformance: (2015) (South African stock x) of which largest: Totalreturn, to Oct 30,2015: 12 months 3years 11.6% 58.6% 99m Ethiopia 60 years Lifeexpectancyin Africa (2010-15) 760m Mobilephone subscriptions in Africa 37% Mobile phone penetration by population (2010) 43% 80% Electricity coverage in (2015) Africa, by population Forecast Africa population 2030 2050 1.68bn 2.48bn Sources: United Nations, African DevelopmentBank,IMF,BPStatisticalReview2015, FDI Intelligence FT.COM/WEALTH|7 theRIChColumn mAttheWVInCent @MPJVincent FoRaYiNToThe FoResT very Christmas, we invite In the UK,IPD Annual Forestry them into our homes and what Indexputs the averageannual return happens? We spend the whole over 22 years at 8.9per cent,which, time pouring them drinks, as Gresham House notes, beats UK efinding them headache pills equities and bonds. Dalwood attributes and catering for their fussy tastes in this outperformance to the “illiquidity food. It takes days to clean up after premium”: the extrareturn investors them. And it still feels likethey’re expectfor not having the abilitytosell under our feetweeks later.No, not the at shortnotice. “Returns have been in-laws. Irefer,ofcourse, to Christmas good,”hesays. “Intimber,weare in the trees. early stages of people getting used to According to experts (or at least this. Theilliquiditypremium should the people who were contacted by a reduce over time, as appreciation for Daily Mail reporter for aDecember the assetclass increases.” space-filler twoyears ago), the AnthonyCrosbie Dawson, portfolio averageChristmas tree will drink a manager at rival forestryadviser FIM, third of apint of water aday,but also argues thatgetting used to the long- require regular top-ups of vodka and term nature of the assetclass is what lemonade, to kill offbacteria and gives timber investors an advantage provide glucose for its cell structure, over those in other real assets. “Forestry as well as salicylic acid from aspirin has big advantages over farmland,” tablets to prevent fungal infection; he says. “You don’thavetoharvest and the ongoing absence of bananas annually.” He cites the example of or other fruit thatemit ethylene gas, as ‘forestry has advantages 2008-09, when housebuilding “fell off this can cause premature needle drop. acliff”and timber prices plummeted. But even ifyou went to all these over farmland.you don’t FIM kept its trees in the ground and let lengths,