Money matters:
Graham Macdonald MBMG International Ltd.
Investment Portfolios Part 1
Some time ago we were somewhat astonished when we read that
many offshore private banks are finding it difficult to continue providing
specialist investment and banking services to the “medium-wealthy”. The initial
cause of our discomfort was the term “medium wealthy”. It’s long been a pillar
of faith with us that while all wealth may be relative, the single most
important factor is that to the individual concerned it’s generally extremely
important. Whether it’s Bill Gates needing to ensure that the IRR on his assets
is adequate to ensure that he retains his primacy as the world’s richest
individual or whether it’s someone in rural Thailand eking out a subsistence
wage to be able to feed the family, for every individual’s own reasons, our
wealth is usually extremely important to each and every one of us. It is just
too important to be simply boxed and categorised as HNW (High Net Worth), MW
(Medium Wealthy) or the most appalling classification that we’ve seen used by
any of the major banks, NWP (Not Worth Pursuing).
That’s not to say that silk purses can be made out of cow’s ears but some
solutions can usually be implemented at most levels of income that can help to
improve an individual’s financial planning. Thai financial planning teams start
offering schemes at just THB 2,000 per month, whereas offshore a monthly savings
plan can be established for as little as GBP 50 per month. However, in terms of
real wealth management (i.e. managing wealth that has already been created) a
critical mass is, to some extent, required. At any company worth their salt,
whilst it should be recognised that certain minimum criteria have to apply to
certain transactions, they would also do their utmost to create highly
personalised solutions for all investors. The process of quantifying clients
needs in terms of liquidity, risk profile, tax-efficiency, required returns and
a whole host of other variables that are extremely personal to each individual
investor, is extremely time-consuming and intensive. The outcome of this process
relies on finding a suitable solution for each individual need.
For as little as AUD 5,000, solutions can be fashioned that are acceptable to
many investors. For as little as GBP 25,000, platforms can be utilised that
create highly personalised portfolios. For just Euro 400,000 or USD 500,000 we
believe that it’s possible to create the very best portfolio that any investor
can buy - above that the only differences might be slightly reduced net charges.
However, it appears that we are far from being the norm. The business strategies
developed by banks at the height of the equity bull market, which relied on
healthy revenues from portfolio management services, have proved to be
unsustainable. This has caused many well-known banking names to drastically
re-work their ways of doing business and, in some cases, to completely withdraw
from providing any services at all but the very wealthy.
Figures
|
1 year |
3 years |
5 years |
Scott Campbell Core Funds
|
1.70%
|
6.62%
|
+23.96% |
Sector Average
|
-10.35%
|
-27.61%
|
-16.74% |
Quartile Ranking
|
1st
|
1st
|
1st |
Rank in sector
|
13th out of 156
|
1st out of 107
|
1st out of 68 |
After a decade, in which the concept of the “mass affluent”
became the buzz words in the ‘retail strategy’ for quite a number of banks -
many of whom then began to boast of offering a more specialised service for this
‘category’ of people - most clients of upmarket banks now “find themselves
talking to a call centre if they’re not careful” according to one senior private
banking analyst.
Just as investors, sucked in by the bull markets of the late 1980s and
throughout the 1990s, started to think that these halcyon conditions could
prevail indefinitely, private banks’ business strategies increasingly centred on
what had become the banking Holy Grail - portfolio management. High Street banks
set up wealth management divisions and clients’ capital was placed in ‘buy and
hold’ equity funds (which were then somewhat neglected) and balanced portfolios
without the need to invest heavily in genuine market expertise - according to
Michael Maslinski, a London-based advisor to private clients.lients.
Maslinski goes on to say, “As long as these banks could keep slicing, say, 1.00%
a year from clients’ equity portfolios, they were happy. The markets would keep
going up, and their profits would too. The economic basis of the industry was
based on that simple fact.”
The attraction of the equity market strategy for banks was compelling. To take
just one telling example: in a six-month period between late 1997 and mid-1998
the German Neuer Market - the country’s high-tech bourse - put on 1,200 points,
a staggering amount. Around the world, developed markets were performing
similarly. For a private bank, such increases translated into instant,
no-brainer profits and allowed them to extend their largesse to individuals far
further down the wealth scale than they had dealt with before. Banks did not
have to offer real, impartial, investment expertise and could push clients into
in-house investment funds or easily selected “best of breed” funds instead. In
other words, private banking wasn’t really very private at all.
As long as equity markets were doing well, all clients’ money could simply be
invested by the banks’ into equities irrespective of their risk and liquidity
appetites - unfortunately this state of affairs cannot prevail indefinitely and
the result was some very disappointed clients, some major damage to banking
reputations and a recognition that private banking needed to be more akin to the
bespoke Absolute Return Portfolios managed by such companies as Miton Optimal.
Although, in certain circumstances, it can be said that some private banking
institutions have been “economical with the truth” with regards to disclosing
completely reliable performance figures, it is possible to estimate these from
the disclosed holdings of private bank portfolios at the end of each quarter.
Based on this, the sector average of Global Asset Allocation (dynamic) is a more
than generous proxy for what were essentially poorly diversified, equity-biased,
global portfolios.
Just compare what the more commonly known bank managed funds did when they are
compared with the track record of Miton Optimal’s Scott Campbell to the end of
2002 (i.e. including the massive corrections of 2000, 2001 and 2002.) The table
below reveals that even when MitonOptimal’s funds were having their worst year
since inception, the figures the fund returned were far from being a disaster
for investors and have other fund managers turning green with envy.
Although the Miton Optimal funds have maintained their outperformance of private
bank portfolios since then by achieving first place at the end of 2003, 2004 and
2005, the differences at that point are both stark and relevant to where we are
today. We really should focus on these:
40.70% better return over 5 years than peer portfolios
34.23% better return over 3 years than peer portfolios
12.05% better return over 1 year than peer portfolios
What banks offered to their “medium wealthy” clients during this period was, in
general, neither personalised nor was it real portfolio management. Putting all
investors in the same boat because they believed that it couldn’t sink turned
out to be wholly inappropriate. Failing to diversify properly across all asset
classes and to manage the portfolios actively or intelligently turned out to be
an act of the grossest negligence that seems to have somehow escaped detection -
are the victims just too embarrassed?
Whatever the investor reaction, the banks’ cover has been blown - cheap, passive
equity proxies are no longer any substitute for genuinely personalised, actively
managed, portfolios and the banks have had the choice between doing the decent
thing, i.e. supplying what they actually claimed to be providing all along, and
just walking away from the hole that they had dug for themselves. Clearly the
latter option was both the easier and the more profitable.
Catherine Tillotson, a private banking strategist at research consultancy The
Scorpio Partnership in London, believes that the market crash just widened the
gap between what the banks were offering and what they claimed to be - “What we
have seen in the last couple of years has been banks reducing what they offer to
the merely mass-affluent and substituting inferior managed portfolios and
internet banking for the true relationship banking they promised before the
crash.”
In fact, a number of high-profile banks have either exited the business
altogether or have quietly upped the required asset level. A bold joint venture
between Merrill Lynch and HSBC, which aimed to provide top-flight personal
banking to medium-wealthy expatriates, complete with online share dealing and
portfolio management, hit the rails when the economics failed to work. Merrill
Lynch currently requires $5m in assets before it will take a client on. The
joint venture had been intended to cater for individuals much further down the
wealth scale but the economics of the bear market suddenly meant that clients
could only get a much limited service from their private bank, if they were even
allowed through the door at all.
Michael Maslinski points out that a bank has to bring in revenues of, on
average, $50,000 to $60,000 per year on a portfolio of $5m to make a profit, if
it is to maintain an often ruinously expensive team of advisors, analysts and
relationship managers. This is because the bank will choose to use expensive
in-house resources which are frequently second best anyway, rather than being
seen to outsource to cheaper levels of expertise from rival organisations.
Below that level of assets, and without the benefit of constantly rising equity
markets to provide easy profits, it is simply impossible for banks with their
monolithic, inflexible structures to offer a top-end service. The financial
models that banks created were drawn up around the precept of easy profits. Once
markets got tougher, banks didn’t have the expertise or resources to continue
making profits for their clients and, therefore, for themselves. Thus for most
banks the idea of admitting that a competitor might have better skills than them
in a particular investment space was beyond contemplation.
As a direct result of this, a survey by IBM Financial Services found that only
25% of European private banks are currently meeting their financial targets.
“For the normally affluent, say with £500,000, the days of getting a proper
private banking relationship complete with dedicated relationship manager are
over,” says Ms Tillotson at Scorpio.
To find the requisite skills at this level along with a reasonable fee structure
and personalised service means looking at independent wealth managers rather
than banks. That’s not only the view of MBMG International or Ms Tillotson, who
points out that the boom time made banks lazy, but also of Cerulli Associates.
This is a US research company that has discovered that an increasing number of
specialist independent financial advisors seem to be dominating the medium
wealthy (£250,000 to £5m) clients now that private banks have demonstrated their
inability to service properly.
Cerulli found that high-net-worth financial advisors in the UK already act as
intermediaries for over half of all investment portfolios within this ‘sector’.
Not all private banks are out for the count. Some avoided the tar-pit of the
last few years’ irrational bull market.
Leopold Joseph, one of the few private banks that do try to do well by their
clients, resisted the temptation for easy equity returns. The managing director,
Michael Fornara, said, “Some of our colleagues got too carried away.” He
continued, “but we’ve never really been an equity managing bank. Clients
shouldn’t expect what is not on offer - easy money. But it is still possible to
manage money intelligently and well.”
We’d still rate this as a second best to the genuine private client personalised
relationship that a fully qualified and legal IFA can offer but at least this
bank is on the same page in terms of impartiality and independence of investment
choice.
The above data and research was compiled from sources believed to be
reliable. However, neither MBMG International Ltd nor its officers can accept
any liability for any errors or omissions in the above article nor bear any
responsibility for any losses achieved as a result of any actions taken or not
taken as a consequence of reading the above article. For more information please
contact Graham Macdonald on [email protected]
|
Snap Shots:
by Harry Flashman
Can you be a self-taught master photographer?
Blurry action in the rain
Action in the rain
In one word - Yes! There are many of the world’s photographic
greats who taught themselves how to shoot. And quite frankly,
with the number of books available on the subject from
photographers such as Michael Freeman or some of the Kodak
series, there is no reason why you cannot emulate the greats,
and begin to produce better photographs yourself. (Or you may
even keep some of these columns as reference guides!)
The question is how? The answer is by observation and by
recording. I have always recommended that all new photographers
should keep a notebook and just jot down a few details of the
settings used, which can later be referred to, if the end result
was what you wanted. Use the same settings in the future and you
have reproducible results. And reproducible pictures. I don’t
care if you are using a digital everything, all-singing,
all-dancing automatic camera. Even noting down whether the
photograph was taken with the light, or against the light (known
as contre-jour, because much of early photographic work came
from France) is a start.
Take for example, the way to stop the action to get shots in the
rain like photo number 2 with this week’s column. This follows a
well known path to get these sorts of shots, but if you haven’t
noted the details at some stage in your photography career then
you will not get them, but will end up with shots like number 1.
Let’s analyze both these shots to show just how they were
produced. For shot 1, the shutter speed was 1/30th of a second
and the aperture was f 5.6, and for shot 2 the shutter speed was
1/30th of a second and the aperture f 5.6! So far, both of them
were identical, so what was the difference to get these very
different photographs?
The secret was in technique, in this case, called panning. With
photo number 1, I just held the camera still and snapped the
motorcycle as it came into view in the viewfinder. That 1/30th
shutter speed was enough to stop the slowly moving baht bus, but
not enough to stop the faster motorcycle, which was also closer
to the camera. The end result was a blurred motorcycle, which in
itself does indicate action and movement, but not what I would
call a very satisfying picture.
Now to photograph number 2. This was taken by the same manual
camera, and the focus was fixed at the point where the shot was
taken, however, the camera was not fixed in position as it was
in photo number 1. I looked up the road and placed the
motorcycle in the center of the viewfinder as it came towards
me, then by smoothly swinging the camera in a horizontal arc and
keeping the motorcycle in the center popped the shutter when the
subject was level with me, continuing to follow its course as it
went away. This is important, as otherwise you will have the
situation of a ‘fixed’ camera and a moving subject, as to get
these panning shots correctly you need a moving camera and the
moving target subject. As you can see, the end result was most
satisfactory. The camera was moving faster in its arc than the
slower baht bus, so it was blurred, while since the camera was
moving at the same relative speed as the motorcycle, it was
‘stopped’ even though the shutter speed was only 1/30th of a
second.
However, the lesson to be learned here was the simple fact I had
done this before, so I knew what to do. Originally I wrote it
down in my notebook! Just the same way I suggest you do!
Modern Medicine:
by Dr. Iain Corness, Consultant
Are check-ups worthwhile?
Many people work on the principle that they would rather not
know about any underlying or sinister medical conditions they may have.
After all, we are all going to die one day, aren’t we? I have always said
that despite all advances in medical science, the death rate will always be
the same – one per person!
However, check-ups are inherently involved in that important feature called
the Quality of Life. Longevity alone, with no quality, just isn’t worth it
in my book. Or yours, most likely, otherwise you would not be reading this
column.
The guiding principle behind check-ups is to find deviations from normal
health patterns at an early stage. Early enough that the trend can be
reversed, before damage has occurred. Examples of this include Blood
Pressure (BP), a significant factor in poor health in the future if
unchecked now. High BP can affect many organs in the body, not just the
heart. But an elevated BP generally gives no warning symptoms.
Another example is blood sugar. Again, it requires sky-high sugar levels
before the person begins to feel that something might be wrong. And by then
the sugar levels have affected vision, the vascular system and many other
systems, all of which can decrease your quality of life in the future.
Amputation of a limb is a common result of unchecked blood sugar levels. A
situation that nobody would wish for themselves, I am sure.
Respiratory conditions also rate high on the list of medical events that can
decrease your quality of life. Yet the majority of these can be found early,
and treated successfully.
Cardiac conditions and abnormalities, be that in anatomy or function, can
also very adversely affect your quality of life, but are very easily found
during a routine check-up. Various blood tests and an EKG can show just how
well the cardiac pump is functioning, and how well it will continue to
function in the future. The inability to walk more than 50 meters certainly
takes the fun out of shopping, yet this can be predicted - if you have some
serial records!
Another of the silent killers can be discovered in your lipid profile, with
cholesterol and its fractions HDL and LDL being intimately connected with
your cardiac status. Again a situation where detecting abnormalities now can
mean that you can get through the deadly 50-60 year age bracket in the
future with clear coronary arteries and a clean bill of health.
There are actually so many of the conditions that can affect your enjoyment
of the future that can be discovered early. Renal (kidney) function and
liver function can be monitored through an annual check-up, as can prostate
size (indicated by the PSA blood test) or breast tumors (by mammogram).
So hopefully I have influenced you enough to begin to think about an annual
check-up. If so, I have some very good news for those of you living in
Pattaya. The Bangkok Hospital Pattaya has repeated their previous King’s
birthday promotional package with big discounts on check-up packages
purchased between the 20th November and 20th December, and the check-up
packages can be used until the 31st of March 2007.
Every package purchased between November 20 and December 20 entitles you to
a free umbrella and a chance to win a free round trip ticket from the new
Suvarnabhumi airport to Chiang Mai and return, flying Thai International
Airways, plus free entrance to the Royal Flora Ratchapruek Expo 2006-7 (the
international horticultural exposition honoring His Majesty King Bhumibol
Adulyadej).
So if you want to stop and smell the flowers, and feel well enough to do it
all again next year, can I suggest that you do think of the annual check-up?
If you are under 40 years of age, and think you are in good health
(non-smoker and moderate drinker) then every two years will be fine. If you
are older than 40, then make it an annual event. It is good ‘insurance’ for
the future.
Heart to Heart with Hillary
Dear Hillary
It is a long time since I written to you but I follow your column every
week. When I am in Pattaya I buy your newspaper and when I stay in the
Jungel (sic) I read your newspaper on Internett (sic).
First of all I hope you still understand and can correct my bad englisch
(sic). (From here on, gentle reader, I have done as he asked and corrected
the English!) Then I suggest following: I have noticed that you now not only
involve yourself in social matters but also electrical matters between US
and Thailand. You also become involved in Real Estate problems. I suppose
when you were employed in your newspaper your scope of work was social
matters. Because you now also involved in two other branches I suggest the
following: You must visit your big boss and ask for a bigger salary. This is
my recommendation to your boss. Please show him this letter from me.
I have read in your column before that the old airport had a “Leave Your
Brain Here center” for farangs before taking a taxi to Pattaya. I hope the
new Airport does not have this “Brain center” for farangs so you can have
more capacity to concentrate on your new branches. If you feel that you have
too much spare time you can start with a visit to the many farang bars in
Pattaya and believe me, you will have stories for the next 100 years. I find
your column sometimes very informative and sometimes very funny. Your
newspaper will never be the same without you.
David
Dear David,
Thank you for your advice, and as you can see, I did correct the “englisch”!
I have cut out your suggestion for my Big Boss, asking for a bigger salary,
and left it on his desk. I shall let you know when it happens. Probably also
in the next 100 years, as I am sure he doesn’t really understand the hard
work that goes into being an Agony Aunt, my Petal. Reading up all that
electrical nonsense and getting real estate agents to open up and tell the
truth is not easy.
Unfortunately, the new Suvarnabhumi airport had its “Leave Your Brain Here
center” built before they even constructed the toilets. This is why you will
see a number of men with glazed eyes, pockets full of blue diamond tablets
and crossed legs coming out of the new airport and lining up for the bus to
Pattaya. And while the bus does have a toilet on board, there is no brain
reclamation service, so the poor dears arrive here very thirsty and answer
the call to “Sit down sexy man” and then open their wallets and are trained
to say, “Help yourself!” Of course, this is an invitation that no
self-respecting Pattaya lady could possibly turn down. Well, I ask you, how
could she?
Unfortunately, after the chap gets his brain back at the airport and
discovers he has bought a house in Nakhon Nowhere, for which he has no title
deeds, a motorcycle and three meters of gold chain, he then writes to Ms.
Hillary, as if I can do something about it. It’s hard some days, David. It
really is.
I do hope that our newspaper will never be the same without me, but I am not
planning on leaving soon, so don’t fret, David!
Dear Hillary,
We are coming up to Xmas, when all our overseas friends are looking at their
holidays and looking to come and stay with us. Honestly, this becomes a
little too much at this time. If I had nothing else to do other than
entertain old friends then it would be fine, but I have work I have to do as
well. I don’t want to give old friends the cold shoulder, but I’m at my wits
end, honestly! What should I do?
Guest house Gertrude
Dear Guest House Gert,
This is a very common problem when you live in a place that other people
save for 11 months to come and visit. It is also very normal for your old
friends to want to see you, and possibly save some money by staying with
you. You actually have the answer already when you called yourself “Guest
house” Gertrude. What you have to do is run your home more along guest house
lines. Tell them that as you have other work to do, you will leave
everything out for them for their breakfast and then you will meet them for
dinner at 7 p.m. and we will all do things together from there. I am sure
your friends will appreciate that even though they are on holidays, you are
not. They need time to themselves too and will be grateful for the chances
to explore on their own. Have some brochures in their room with suggested
trips like Nong Nooch gardens and the Sriracha Tiger Zoo and let them take
it from there. Many tourist facilities will even pick them up and deliver
them back, so you don’t need to be a taxi service as well. They will be
happy, you can do your work, and you can enjoy each others company at night.
Just think about it, you can even get one of those nice wooden signs with
“Gerties Guest House” carved into it.
A Female Perspective: with
Sharona Watson
Having the operation
AI don’t want to seem predictable, but I have to say that there’s something
about the repetitious nature of my husband that I find tedious. Perhaps it’s
inevitable after fifteen years of marriage? I mean, it’s scary; I’ve known
him for twenty four years, ever since I was fifteen. That’s how old my
eldest daughter is now! You have to keep an element of unpredictability in
your marriage to keep the freshness and by the way, by ‘unpredictability’ I
don’t mean ‘uncertainty’. That’s something different and as I wrote a couple
of weeks ago, is just a constant source of anxiety.
As for predictability, here’s an example. Whenever any of us in the family
have an illness, an ache or a pain, up trumps Andy with, “Let me deal with
it. I come from a medical family!” You know, writing this I realise that it
probably sounds pompous and ridiculous but he says it in such a way that he
is taking the mickey out of himself. He knows perfectly well that he knows
nothing about medicine. I admit that he does come from a ‘medical family’
and he’s probably picked up a few things along the way, overheard
conversations about this and that, but he’s not exactly qualified to make a
medical judgment.
Mind you, there are plenty of people unqualified for their jobs who make
judgments aren’t there? Now there’s predictability for you; they’re
unqualified, make judgments and the judgments are particularly poor ones;
should we be in the least bit surprised? I tell you one thing - if I was
ever fired for being incompetent at something, I’m not sure I’d dare show my
face in the place where I’d been sacked from. I hope I would have just a
little bit more self respect. Andy’s father always used to say of arrogant
people who never accepted that they had made a mistake (like Margaret
Thatcher - who was his favourite target) that either they should ‘have the
operation’ or that they had ‘already had the operation’. I think he was
talking about a lobotomy.
I could understand why Andy’s Dad got upset with stupid people; I’ve got low
tolerance for idiots myself. I’m talking about ‘stupid people’ as people who
are nasty to others; spread false rumours about other people and create a
cycle of ‘self-fulfilling’ prophecies for themselves. Because they cannot
admit to themselves that maybe it’s them who are the problem. It kind of
follows an obvious pattern; people like this are always complaining, often
they are litigious. Always talking of suing someone else as if that proves
that they are in some way better. Always blaming someone else, never
‘looking in the mirror’. Pathetic. Equally pathetic is when people are
bullied into believing people like this; I think you call them, ‘lemmings’
in English. I’ve seen it so many times. For instance, you’ll meet someone
for the first time and they’ll start demeaning someone for no apparent
reason other than jumping on some bandwagon. Who out there is brave enough
to say in front of others, “But hold on, have you ever met this person?” And
then they’ll hesitate and say, “Er, well, no, actually.” Who’s the idiot
now? It’s like they never escaped from their little playground of bullies.
The main reason I can’t stand this blind ignorance is because this is how
prejudice grows into hatred and a quick look back at the last century will
warn you of the dangers of this. In fact, you see it around the world now.
Worse still, the same people who demonstrate blind prejudice, almost on a
daily basis, will also be the first to condemn extremist groups around the
world who do the same. That’s why extremists of all kinds hate people who
work towards bringing real people back together. Oh dear, I seem to have
digressed. You know how it is, though, when something really gets you?
Back to ‘having the operation’. When I was younger, I wasn’t really
sympathetic to people who wanted to have plastic surgery. The very word
‘plastic’ made me think of something fake and usually unnecessary. On the
television and in the newspapers, you’d see pictures of famous people whose
faces had been pulled, stretched, squeezed, ‘lifted’ and stuck down again.
It’s probably too dangerous to mention any by name; people are really
sensitive about it. But it’s a bit difficult not to mention something when
suddenly one day, someone’s wrinkles aren’t there anymore!
Once, I tried complementing a guy I knew, who went out for lunch bald and
came back with some hair. I mean, what do you say? You can’t say nothing,
can you? I thought, “I’ll just be up front about it” and I said, “Hey,
Elliot. Nice hair piece. It looks really good!” (OK so I lied) Elliot looked
up, face red as a tomato and looked at me straight in the eyes before
replying, “What hair piece?” I mean, really, what can you say to that? Ok,
so I wouldn’t do it myself, but there’s nothing wrong with someone doing
something to themselves if they feel better as a result, is there? But why
pretend it hasn’t happened? Elliot was only kidding himself!
I think that these days, it’s a much more positive environment to have
plastic surgery done; I’ve change my view from when I was younger and it’s
not just because I’m older. Things are much more professional, safer and
socially accepted. So if I want to have an operation on my boobs, for
example, then I’ll happily go and do it and I’ll feel great about it. It’ll
take a weight off my back, I can tell you. And I love the fact that women
get together and celebrate what they can do to their bodies; to make them
feel better about themselves. Brilliant. Nowadays, it’s just like going to
the dentist, or the doctor. It’s become an accepted part of living in the
21st century and to me, that’s just great.
Next week: Never say ‘never’
[email protected]
Learn to Live to Learn
by Andrew Watson
Sowing the seeds of success
Richard Hayward is a modest yet high achieving man. Last month, he quietly,
humbly, efficiently and quite magnificently, presided over one of the most
sensational school events ever held in South East Asia. The Fobissea Music
Festival crowned a dramatic and impressive first six months in the job and
as I wrote at the climax to the gala concert, “In a rousing crescendo of
dramatic harmony, all present bore witness in the unforgiving beauty of an
unforgettable moment, to a new reality; Garden International School had
arrived.” Naturally, Richard deflects credit for the outstanding achievement
onto his colleagues, “Staff lined up to help from all aspects of school
life.” It’s essentially true, of course. You can’t pull off something like
Fobissea without tremendous teamwork.
Richard
Hayward, the consummate gardener.
So how has he found working in the lush idyll that is Garden International
School, since November no longer a backwater? “I suppose it’s a funny thing
but most people knew that when I came to this school that things were
hopefully going to be a little bit more organised,” Richard tells me in a
quiet authoritative voice which commands attention. “I do feel that some
things had slipped.” But he is positively upbeat about the future and speaks
eloquently and with great enthusiasm about the school community, which has
been very supportive.
Is it a case of wanting the parent body to feel included and assured that
they have a voice? “Definitely! The parents are essentially the ‘buyers of
our product’, which is an international school education and we have to
tailor it towards them. But there must be common international standards. I
bring mine from my experience and teachers bring theirs from their
experiences and I believe we have a high general set of standards.”
The question of ‘common international standards’ is one that is still being
explored through research at governmental and non-governmental level; a
never ending quest perhaps? After all, international schools are a
relatively new phenomenon and for a variety of reasons, when you scratch not
too far from the surface, many schools’ ‘standards’ seem variable at best,
especially when it comes down to ethics. Clearly, immorality has no place in
Richard’s brave new world.
Does he think there’s a need to involve parents as stakeholders and partners
in being educated about things like principles and practice in international
education? After all, there’s bound to be that thing people call
‘perceptions’ flying around (or lies?) which might benefit from a dose of
academic rigour (or truth?)? “Yes, sure, we have to be a source of
information as well. As a parent, it’s usually when you don’t feel informed
that you come back to the school and say, ‘look there’s been a breakdown in
communication,’ but if you’re kept informed and you’re kept involved, then
you’re usually a happy parent.” Richard ponders a while before adding,
“Sometimes, it can be difficult because one or two parents might have some
very strong views. But at what point do you say, ‘Ok, we will adjust
things’?”
Richard recognises that the professional expertise in the parent body is
something to be respected, “These are parents who in their own individual
fields are in great positions, have managed their own businesses and have
lots of experience. They know how an organisation should be run. But I think
everybody’s pretty happy. I am always keen to see parents more involved
actively in school.”
Living and teaching in Thailand of course, is a veritable delight. Has
Richard noticed the culturally embedded respect that Thais have for
teachers? “I have!” he smiles, “I think it’s a pleasure for most people to
come here and parents are so respectful of the teachers.”
Nonetheless, he feels that it is the school’s duty to explain what they are
doing and say, “Well, actually this is normal and good practice.” He
continues, “Whilst our western parents have been through similar schools …
(Richard is considering his words carefully and is evidently a deep thinker)
… I’ll give you a small example of a situation where I think I’ve been
fairly lenient. Haircuts; what exactly is an acceptable length of hair in an
international school? I’ve gone for the middle ground just to keep to a
rational common standard. We are extremely liberal in our views, really.
Nonetheless, a Thai parent coming with Eastern values, or from a Thai school
where it’s far stricter, might be expected to view this situation
differently to Westerners. It’s all a matter of balance and judgment. I
never want parents to stop giving their opinion. When I don’t get the
opinions of the parents, I get worried; I want them to feel involved.”
Richard speaks with obvious passion for his role, one which he is able to
reinforce with significant, individual, academic achievement. He seems very
English, but it transpires that he’s been a global nomad ever since he was
born. “I started my life in Scotland,” Richard tells me with great nostalgia
as if he’s telling a story to his children, “My mum had flown back from
Singapore. Two weeks later we flew back and this time I was on the outside!
In Singapore, my father flew big Hercules transport planes for air sea
rescue in the South China Sea. Singapore was very different in those days,”
he reminisces, “I still have a picture of me with Malaysia in the background
… so growing up, living and working with Asian people is very normal for
me.” Indeed, for he is married to a Filipino called Edna; they have two boys
under five, James and Josh.
After Singapore, Richard’s father was stationed in Cyprus for a long time.
It was then that he attended boarding school in the UK, at the stunningly
gorgeous Rendcomb College in Gloucestershire, where he was what he
touchingly refers to as an ‘abroad boy’. The army, university and Kenya
followed (more of that next week) before he returned to Asia to lead Garden
International School in Bangkok, which rather like the Rayong campus
subsequently, experienced a significant upturn in its fortunes. Call it a
coincidence if you will.
“I’ve been an expat all my life really,” he is happy to report, “and having
grown up in Singapore, I have come almost full circle.” Rather appropriately
perhaps, Richard reminds me of someone who demonstrates a combination of
meticulous attention to detail, a great love for what they are doing and the
patience to see a race through to its end. He is the consummate gardener,
sowing the seeds of success.
Next week: In Safe Hands
[email protected]
|