Chanel celebrates Depression collection that kept diamonds fashionable


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Coco Chanel was never very far from controversy, whether she was liberating women from their corseted bondage or championing bobbed hair and sunbathing.

That was nothing, however, compared to the furore she created in the Place Vendôme in Paris when in 1932 she launched a collection of fine jewellery.

The venerable old jewellery houses in the Place were apoplectic that a couturier imagined she could design jewellery, a skill they had spent years mastering and furiously protecting.

No fashion designer had ever created a precious jewellery collection before, but some diamond merchants, worried about the effect of the Depression on sales, wanted Chanel's help to make diamonds fashionable again. It was an inspired idea and it worked.

To mark that extraordinary one-off collection, Chanel is celebrating its 80th anniversary. The "1932" collection comprises 80 items, "the most impressive collection in terms of value and number of pieces" ever produced by Chanel, says Benjamin Comar, its international director of fine jewellery.

The collection will tour the world for the rest of the year after it is presented at the prestigious Paris Biennale des Antiquaires from September 14 to 23.

Times have changed considerably since the 1930s. Coco Chanel loved a challenge and, bearing in mind that hers was the first fashion house to launch a fragrance, why couldn't she turn her creative instinct to diamonds?

On a November evening in 1932, she invited the cream of Parisian society to her home on Faubourg St Honoré and displayed her dazzling collection on wax mannequins against a backdrop of Coromandel screens.

The display "was very original at a time when pieces were traditionally presented in a jewellery box or on velvet cushions", notes Comar. It allowed a client to envisage what it would be like to wear them.

There were €2 million (Dh9.2m) worth of bright white and yellow diamonds on display, set in platinum designs.

Her audience was entranced but could not buy the pieces, because the diamond merchants had agreed to dismantle all the jewellery after the exhibition to placate the jewellers.

Only one piece is known to have survived: the Comete brooch, which is now one of the couture house's most treasured possessions.

From this brooch a whole new generation of fine jewellery was created in 1993 when Chanel reintroduced high jewellery.

Coco Chanel said of her collection that she found inspiration simply by looking up at the Parisian night sky, streaked with stars and the moon in its first lunar phase: "I wanted to cover women in constellations," she said. "Stars! Stars of all sizes to sparkle in their hair, fringes, moon crescents."

The new "1932" collection ranges from the dramatic Comete necklace, which features a comet on a question mark-shaped necklace with a sublime 15-carat white diamond - inspired by the original brooch and necklace (which did not survive) - selling for €4.7m, and a delicate Étoile filante necklace in a similar shape with filaments of diamonds for €3.9m.

Coco Chanel was a known innovator, and these supple necklaces, with no clasps, meant a new, free way of wearing such jewellery.

The Étoile filante headpiece, meanwhile, is the first headpiece the house has designed since Chanel's original fringed design. Comar says it is a nod to the Art Deco style of the 1930s.

The jewellers of that decade may have regarded Coco Chanel as an interloper in their closed world of fine jewels, but today, a few haute couture houses and luxury brands are creating magnificent jewellery collections.

Christian Dior, Louis Vuitton and Chanel join their Place Vendôme neighbours, the established houses of Cartier, Van Cleef & Arpels, Chaumet, Piaget and Boucheron, in showing at the Paris Biennale at the Grand Palais.

It is a sign of acceptance at last.

"High jewellery and haute couture share the same core values such as creativity, craftsmanship and excellence," says Comar. "High jewellery goes very well with Chanel's philosophy of ultimate luxury."

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

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