Asset International continues to grow through organic growth of our core businesses and brands as well as through acquisition. As we expand, it remains important that the senior management team continues to provide a culture that allows both individuals and teams to perform at a high level and deliver on the goals we have established for the company. Several years ago I wrote in a column, Corporate Culture: "Those of us who look to acquire companies and refocus them need to understand their corporate cultures. If we are to be successful in putting them on a new growth trajectory, we also need to understand where they went off course. We should not accept the excuses of entrenched management teams or boards for their recent failures. We should rigorously seek out the team members that can help re-establish a culture that once gave them a swagger within their sector. A friend of mine sent me a quote from an ESPN anchor, 'pressure is a privilege.' I believe that this can be applied to both sports and business."

The executive leadership team needs to set an example through their actions. They need to make themselves available to clients on a global basis, and to constantly demonstrate through product innovation that they understand the needs of all of our clients. Mid-market companies often do not have the skills on their bench to reach their growth goals and must go outside to recruit talent. Retained executive search firms can be of great assistance in this process, but they need to work closely with the responsible executive and the Human Resources team to understand both the company's culture and the goals that will be put in place for the individual who will be joining the team. I have found, over the years, that the more team members that get involved in the interview process, the greater chance that, together with the search executive, you will come up with someone that will be able to produce (after an initial onboarding period).

Communication during the search process and after the hire is essential to make certain that the new team member understands that there is a culture in place to help them succeed. One of the major roles of the CEO and the Board of Directors is to make certain that the resources are in place to allow divisions to reach the stated growth objectives of the company.

Finally, we need to empower the talent at all levels of our company to make decisions as close to the client as possible. In other words, do not make decisions without understanding the market needs of your existing client base. You must also never underestimate your competition. Your best competitors are those who provide you with the greatest challenge. They help to elevate your game and to ensure that you will never take your clients as a given. Each day we need to earn the right to serve our clients' business needs.

In Retirement & Energy Independence: Two Issues to Be Addressed, I called for both political parties to raise the level of discourse to longer term issues that are global in nature and move beyond the rhetoric that one finds during the duration of political campaigns. Today I want to focus on the funding of retirement liabilities and will address energy independence in a future column.

Retirement funding is not an issue that is limited to one country or one form of government. It is a real issue for democracies in continental Europe, the United Kingdom, and the United States, as well as Canada and Australia. It is also a very real issue for China, as the effects of the "one child" policy come into focus. And it is a real issue for the Latin American countries, too, with Brazil and Chile taking leadership roles.

Now that the Great Recession is behind us and a sustainable recovery is underway in many countries (continental Europe has made strides to avoid defaults and the Euro looks like it can survive with some painful austerity measures having been put in place), there are communities of thought leadership coming together to address this issue and find solutions to this global phenomenon. It is clear that the retirement age around the world will go up significantly and we will need to make certain that economies are strong enough to support workers staying in place longer and still provide jobs for people in their early 20s who are starting to enter the job market. This is a very real issue in Europe, where the unemployment rate for many college educated people in their 20s remains in the high double digits. We also saw during the Arab Spring that this is a very real issue. The other side of providing a college education for many is to have strong enough economies so that graduates can find employment in their chosen field.

I have found that professionals, globally, who focus on this issue are coming together as communities to recognize best practices and point us toward long-term solutions. With the Crisis behind us, there is more willingness to travel and share best practices, which will help us find long-term solutions as our populations age and demand a retirement with dignity.

Asset International companies take a leadership role in this area, providing forums for the exchange of best practices and a sharing of insights. This past week in New York City, Alison Cooke-Mintzer and Charlie Ruffel hosted the PLANSPONSOR AND PLANADVISER Awards for Excellence 2012. Over 300 attendees came to recognize those whose achievements will help us identify best practices.

aiCIO lead by Kip McDaniel will host their annual Summit Series this year: coming up in mid-April in New York City, A Focus on Meeting Your Targets, and in mid-June in London, A Focus on Asset-Liability Matching. Also in mid-June in Chicago , we will host the PLANSPONSOR National Conference 2012.

I am confident that this issue will emerge as a central topic in this fall's presidential election in the U.S., particularly with regards to Social Security and Medicare. Let's hope we get more than "sound bites" from both parties.

After one of the warmest winters on record in New York City, we are starting to look forward to spring and Opening Day of the Major League Baseball season. With Bobby Valentine managing the Red Sox, it is certain that the press will not be lacking for stories with quotes from Bobby V about the Yankees vs. the Red Sox, the greatest rivalry in American sports.

It is a good point, as well, to look back and see how the two different paths traveled by the Cameron coalition government and the Obama administration to foster the fragile recovery from the Great Recession have performed. In January of 2011 I wrote, "As I pointed out in August (Cameron & Clegg's Early Days), the government's call for austerity and specific plans were well received, particularly in view of the contagion that was spreading on the continent. Now that they have been in office for more than six months, we are starting to see that the path they have chosen is not without obstacles...It is clear that the Cameron government will need to digest this data and make some adjustments to their plan." (Two Paths: Austerity vs. QE2)

In addition, I wrote, "In the U.S., where unemployment remains at 9%, the Obama administration and the new Congress will soon be debating cutting the deficit and the need to continue to "invest" in the economy."

We are starting to get a clearer picture on how both strategies have performed and what adjustments are needed to continue the recovery, while reining in the large deficits, which could crush long-term growth by squeezing out the private sector from the debt markets. Alex Brittain and Nick Winning wrote in the Wall Street Journal, "The U.K. government enjoyed its biggest surplus in four years in January....For the financial year to date, borrowing was 93.5 billion pounds, or 15.7 billion lower than in the comparable period of the previous year...Undercutting the borrowing target would give Mr. Osborne ammunition to argue that his program of spending cuts to pare back the national debt is working, following criticism from political opponents that the strategy is stifling growth and adding to the debt. In November the chancellor conceded that economic growth would be weaker and borrowing higher than expected, meaning the austerity measures would likely go on for longer. But a Treasury spokesman said Tuesday the ONS figures vindicate the government's strategy. 'Our credible deficit plan is working and bringing government borrowing down,' he said...Pressure on Mr. Osborne to ease back on the austerity program has grown as the economy has weakened. The chancellor will reveal new plans to support growth in his budget statement next month." (February 21, 2012)

We had another data point late this week: "Activity in the U.K. construction sector expanded at the fastest pace in February for almost a year, with a marked increase in new business boosting hopes that the economic recovery is back on track, according to a survey published Friday. Data provider Markit and the Chartered Institute of Purchasing and Supply said their purchasing-managers index for the construction industry rose to 54.3 in February from 51.4 January--the highest reading since March 2011." (WSJ, March 2, 2012)

Turning to the U.S., Reuters reported, "The U.S. economy grew a bit faster than initially thought in the fourth quarter on slightly firmer consumer and business spending, which could help to allay fears of a sharp slowdown in growth in early 2012." (Instant view: GDP fourth-quarter GDP revised up to 3 percent, February 29, 2012)

At the same time, we are seeing spring gasoline prices quickly approaching $5.00 in certain parts of the country and our lack of a well-defined energy policy could soon stall the expansion if consumers begin to cut back.

I sense that as we move forward in the recovery cycle, we will continue to see both the U.K. coalition government and the U.S. administration make adjustments to their game plans. Trillion dollar deficits are not sustainable in the long run for the U.S. and high unemployment rates will not be sustainable either for the U.K. I do believe, though, that in the near term both countries will escape the fate of the Eurozone countries, which are in recession.

Mary Claire and I are in Northern California this week and I look forward to welcoming spring with a round or two of golf this weekend!

Two weeks ago today, Mary Claire and I flew to London from New York. We found winter there, which has been missing back in New York. Frigid temperatures had found their way west from Russia, and while we saw the sun every day during our stay, the temperature was never much above freezing.

I was able to meet with our expanded London team and together one evening we hosted an event for our London-based clients to meet the editors and directors of research at our new offices in The City. It was my pleasure to announce that John Lee, from whom we bought The Trade in 2009, would be assuming the role of Managing Director of Europe for Asset International. John is a serial entrepreneur and media professional who has started and successfully sold three media companies. He began his career as a journalist and will provide us with leadership as we look to continue our growth in London and on the continent. Most recently one of his former partners, Dr. Richard Schwartz, joined us as Editor-in-Chief of our new launch, Philanthropy Management. Together with aiCIO, these brands will serve as the cornerstones of our Wealth Management Group. We also introduced our clients to Elizabeth Pfeuti, our new European Editor of aiCIO, who most recently was with Dow Jones' Financial News. Kip McDaniel and his editorial team are rapidly expanding their global coverage.

On Friday evening, we joined the Lees to see Ben Brown's Three Days in May. The play examines the tough decisions Churchill's coalition war cabinet wrestled with versus Hitler's Germany in 1940.

On Saturday evening we arrived home in plenty of time to prepare for Super Bowl XLVI, the New York Giants vs. the New England Patriots. The Giants lead by Eli Manning had also been on the road during this playoff run after beating the Atlanta Falcons at home. They faced a tough opponent in the Tom Brady-led Patriots. During one stretch in the game, Brady completed 16 passes in a row! In a tough-fought battle that went down to the wire, the Giants emerged victorious, 21-17.

On Monday we headed to Boston, where Stephen Moylan, our Executive Vice President of Sales & Marketing, once again hosted our global sales conference. With a significant number of customer panels, we listened carefully to hear how we could best serve their business intelligence and marketing needs. This year's meeting included our latest acquisition, Financial Research Corporation, or FRC, which is based in Boston and is a division of Strategic Insight. We also had the opportunity to share with our clients the previews of several new data products that will be added to Simfund MF later this year. We are looking forward to another year of double-digit organic growth and trust that we will continue to add to our portfolio of institutional finance brands through acquisition as well. Global financial markets will remain challenged, but in this environment the demand for must-have actionable information will remain strong.

This weekend of NFL wild-card football has provided significant entertainment, with the New Orleans Saints, lead by Drew Brees, advancing to play the resurgent San Francisco 49ers, the Houston Texans advancing for the first time to Baltimore to play the Ravens, the New York Giants, lead by the other Manning, once again headed to Lambeau Field in Green Bay to face the defending Super Bowl champion and their MVP, Aaron Rodgers, and the surprising Denver Broncos and the amazing Tim Tebow are headed to New England, after an overtime victory against the Steelers, to play the Patriots and their field general Tom Brady.

We will end a great weekend and holiday season of football with the BCS National Championship title game tomorrow evening, when #2 Alabama will challenge #1 LSU. In an SEC regular season game in November, LSU came out on top in overtime, 9-6, in the game of the century. Can LSU, coached by Les Miles, beat a Nick Saban team twice in the same season?

In between the wild-card games we had two more Republican presidential debates in New Hampshire, where the first primary of the 2012 election will take place this week. After listening to the questions posed to the candidates in both debates as well as several of the earlier Republican debates, it struck me that the two issues that probably mean the most to the U.S. over time were not being addressed.

The first one is the funding of retirement. This is a global issue that goes well beyond the U.S. election. In the U.S. the impending retirement of the baby boom generation needs to be addressed by both parties, particularly with regards to Social Security funding requirements and Medicare, as well as what retirement resources individuals will need as they live longer. These entitlement programs and their funding requirements cannot be ignored.

The other issue that has just started to be discussed nationally is energy independence. Recently, the Deloitte Center for Energy Solutions conducted a poll and released the results at their annual oil and gas conference in Houston on December 15. Eight out of 10 respondents linked gas with job creation and economic revival. “Specifically, 83% of respondents agree that gas development can stimulate U.S. job growth, and 79% believe the gas development can help revitalize the economies of the states and communities.” (Oil & Gas Journal www.ogj.com) While there are environmental risks, the majority of the respondents believe that the long-term reward of energy independence from shale gas far outweighs the risks. In 2005, shale gas made up a very small share of domestic natural gas production but has surged beyond 20% recently. The positive impact on the health of our economy over the next several decades, when combined with newer green technologies, cannot be overstated.

These two issues are ones that I would like to see President Obama and his likely challenger Mitt Romney address when they meet in the fall to debate, prior to the November election.

In my last column in early December, I forecast that the U.S. recovery would continue, which was confirmed later in the month. I also forecast that even though the Eurozone would enter a mild recession while the member countries continued to wrestle with the debt crisis, the United Kingdom would experience slow growth but would not join the countries on the continent in recession. Shortly after this column appeared Prime Minister David Cameron became the target of French President Nicolas Sarkozy's ire when he stood alone at the December EU summit and did not vote for the new treaty. Cameron made this decision "after failing to secure safeguards for the U.K.'s financial services sector." (WSJ December 22, 2011) A survey by the Institute of Directors showed that the U.K. business community strongly supported this decision, with 77% of the business leaders surveyed agreeing with his veto. (WSJ December 22, 2011)

With the financial services sector being a key driver of the U.K. economy, his lonely stance is to be applauded, particularly in London. I sense that over time we will come to see Prime Minister Cameron's decision lead to a faster recovery for the U.K. when combined with the austerity measures he instituted upon his election victory.

In his annual New Year's message, the Prime Minister acknowledged that 2012 would be a challenging year. "I know how difficult it will be to get through this...with ordinary families worried about what 2012 might bring. There are fears about jobs and paying the bills. The search for work has become difficult, particularly for young people. And rising prices have hit household budgets. I get that. We are taking action on both fronts." (FT January 2, 2012) He did find reason for some optimism, though, with the forthcoming summer Olympics in London and the Queen's Diamond Jubilee. He stated that there was an "extraordinary incentive to look outward, look onwards and to look our best. This will be the year Britain sees the world and the world sees Britain. It must be the year we go for it-the year the coalition government I lead does everything it takes to get our country up to strength." (WSJ January 2, 2012)

We at Asset International share Prime Minister Cameron's guarded optimism about the long-term growth prospects for the U.K.'s role as a financial engine, and we will continue to invest and expand our business in London in 2012. Our editorial and commercial teams have both been strengthened over the past several months. In late January and early February I will be spending time with my colleagues in our new London offices at 200 Aldersgate Street in The City.

Happy New Year!

As we move further into the holiday season, it is clear that we have avoided a double-dip recession in the U.S., which was on everyone’s mind this spring, but the global economy remains under pressure, particularly in the Eurozone where long-term solutions remain elusive. It will be difficult to avoid a European recession in 2012. I sense that we will still be looking at various solutions in January, but that France and Germany, together, will finally find a way to bridge their different views and move to save the Euro. A recession in the largest European countries should not be too prolonged and the U.K. economy should manage to avoid the collateral damage and show moderate growth.

I have not written much this year on wine, but sense that we could all use some holiday cheer as we look toward the New Year! One aspect of the wine trade that has not escaped the global economic forces is that the auction market, based on demand for first-growth French wines, in particular, has shifted from New York to Hong Kong to serve the growing market in China. Over the years, I have been both a buyer and a seller at Acker Auctions, www.ackerauctions.com, in New York City. Today it is clear that their largest volume auctions, in terms of dollar volume, all take place in Hong Kong where they established an office several years ago. (Two new auctions in Hong Kong will take place this week and you can bid via the Internet at www.ackerasia.com.) This trend will continue as we embark on 2012.

As Mary Claire and I prepare to head back to the Bay Area for the holidays, I thought an update on two longtime California reference wines might prove valuable.

Williams Selyem
For many years, this Sonoma-based winery set the standard for California Pinot Noir. When the ownership changed hands in the late ‘90s from the founders to the Dyson family, a number of new challengers emerged. At this point, though, with Kathe and John as proprietors and Bob Cabral serving as Director of Winemaking and General Manager, Williams Selyem is clearly the reference standard for outstanding California Pinot Noir. This is a mailing list that you want to be on for their twice a year releases. Their limited Chardonnay releases are truly hidden gems, as well. www.williamsselyem.com 

Turley Wine Cellars
I have been a fan of Turley Zinfandels for years, going back to the early ‘90s. They continue to impress me with their releases, which are also twice a year. This is another mailing list that you should get on. Proprietor Larry Turley and winemaker Ehren Jordan continue to be an unbeatable team.

Start building your Williams Selyem Pinot Noir and Turley Zinfandel collections in the New Year. Your wine collection and your companion dinners will truly be enhanced. www.turleywines.com 

Happy Holidays!