Annual Report 2020

Contents Foreword 2020 – challenges and transformations Asset management markets Global wealth Asset management in Switzerland Fund markets Market environment Swiss fund market European fund market Global fund market National environment Financial Market Strategy Financial Services Act (FinSA), Financial Institutions Act (FinIA), and their ordinances Limited qualified investor fund (L-QIF) Sustainable finance Global Investment Performance Standards GIPS® Swiss Financial Market Supervisory Authority FINMA Tax issues Swiss Fund Data (SFD) Relations with authorities and associations in Switzerland International environment At the level of the EU and EU countries Beyond the EU European Fund and Asset Management Association EFAMA Other international activities Activities SFAMA renamed Asset Management Association Switzerland Portrait Work program in 2020 A review of events Specialist committees Communication Changes in the Association Board of Directors Executive Board Members Membership Appendix List of abbreviations 4 6 8 9 11 16 17 18 19 19 20 21 22 22 22 23 25 28 28 28 30 30 32 32 33 34 35 36 37 38 46

Foreword opportunity to offer Markus Fuchs our warmest thanks for his exceptional contribution to strengthening the fund and asset management industry. He will continue to provide the Association with operational support for the time being before moving on to focus on selected mandates in the public and private sectors. Focal points for 2021 The following themes will be at the forefront for the Association this year: • Building on and strengthening the position as the leading asset management association and thus the most important body representing the interests of asset management in Switzerland; stepping up efforts to promote asset management • • Emphatically communicating the fact that everyone in paid employment uses asset management services via their occupational and statutory old-age pensions Implementing innovative fund solutions – in particular the L-QIF – as well as sustainable asset management, best practice standards, and self-regulation in asset and risk management through guidelines, model documents, and specialist information factsheets in the interests of the asset management industry Lobbying with regard to current and upcoming legislative projects (acts and ordinances on regula- tory and tax matters), particularly in connection with the implementing regulation for the FinSA/FinIA, the L-QIF project, and the reform of withholding tax/ stamp duty • • Extending the Association’s function as a forum and bolstering communication activities (website, events, specialist committees, members, general public) • Building on our relationships with political representa- tives at the national level • Providing members with information, training, and support to help them implement the changes required under the FinSA and FinIA L-QIF entering final stretch The dispatch on the revision of the Collective Investment Schemes Act (CISA) required to create the limited qualified investor fund (L-QIF) was adopted in August 2020. This new category of fund with a flexible investment universe is likely to be made available to qualified investors from 2022 onward. As the initiator of this innovative idea, the Association regards its implementa- tion as a crucial step toward strengthening Switzer- land’s competitiveness as a location for funds and asset management as well as that of its financial sector as a whole. Sustainable finance In its report on sustainability in Switzerland’s financial sector, the Federal Council (FC) makes it clear that it wants to optimize the regulatory framework with a view to improving quality. It continues to call on industry associations and representatives to promote sustainability and to build on and implement its measu- res. To this end, we published our Key Messages and Recommendations for Sustainable Asset Management together with Swiss Sustainable Finance in summer 2020. Asset managers need to assess the social, economic, and environmental impact of their investments and embed their values within a policy of sustainability. Standardized, measurable reporting and the availability of reliable data are essential for creating the required transparency. New CEO from 1 January 2021 The Board of Directors elected Adrian Schatzmann as the Association’s new CEO on 3 December 2020. He has an outstanding knowledge of the industry, an enterprising approach, and international experience and will call on his expertise and broad network to develop the Association further. Adrian Schatzmann replaces Markus Fuchs, who has been instrumental in shaping the Association over the past decade, with effect from 1 January 2021. We would like to take this Sincerely yours Iwan Deplazes President Markus Fuchs Managing Director 5

Asset mAnAgement mArkets Diverging trends among individual countries The market capitalization of stock markets grew strongly in 2019 in all of the world’s major economies, with gains of more than 20% in Germany, France, and Russia and almost 40% in China. India and the UK lagged behind with single-digit growth rates. The picture with regard to real estate prices was similar: Italy was alone in recording a slight fall, with other leading countries showing increases of between 1% and 7%. These countries saw substantial growth in wealth levels as a result. Wealth per capita in North America stood at USD 457,000 at the end of 2019, well above the European figure of USD 161,000. Switzerland continues to occupy first place in this respect with a figure of USD 598,000. Global market for asset management Financial assets make up the bulk of the wealth managed by asset managers. According to the Allianz Global Wealth Report 2020, financial assets accounted for around 53% of the overall total, or USD 216 trillion. Around 28% (USD 58 trillion) of these were bank deposits, with securities making up 39% (USD 86 trillion), and retirement savings and insurance products 31% (USD 65 trillion). Based on an estimate of two thirds of the wealth held in securities, pension funds, and insurance products being managed by asset managers, the total volume of the global asset manage- ment market can be put at around USD 105 trillion. According to Boston Consulting Group’s estimates, earnings in the asset management industry worldwide stagnated at around USD 98 billion in 2019. Average revenues on assets under management fell further from 26.2 basis points in 2018 to 25.2. With assets under management rising significantly and costs relative to assets under management falling slightly, the profit margin remained at a respectable level of 34% (2018: 35%), once again falling short of the 2007 record of 38%. Global wealth in 2020 Real assets USD 183 trillion Financial assets USD 216 trillion Bank deposits USD 58 trillion Others: USD 6 trillion Pensions & insurance 2/3 products USD 65 trillion Securities USD 86 trillion 7 Asset management USD 105 trillion Source (chart): AMAS

Fund mArkets Stock markets were extremely unpredictable and full of surprises in 2020. From an all-time high to a huge slump and a rapid recovery, there was a little of every- thing. Some 12 years after the financial crisis, the coronavirus subjected the global economy to a new stress test. Market environment Like a rollercoaster In a year dominated by the coronavirus, the stock markets mostly performed quite well, which came as a positive surprise. That said, there was considerable volatility. When the threat posed by the virus started to become clear in mid-February, many leading indexes plummeted, some by as much as a third. The recovery that followed was not quite as fast, but it was hardly sluggish. The second wave of coronavirus infections in the fall depressed the markets once again, but sentiment was then buoyed by the prospect of vaccines being approved soon. Further impetus was provided during the Christmas holiday by the resolution of two conflicts: a Brexit deal was reached after protracted negotiations, and the USA signed off an extensive economic stimulus package in response to the pandemic. Central banks and state funding setting the tone In 2019, the combined forces of the central banks only just succeeded in averting a global recession, which would have been the first since 2009. To this end, they agreed to extend zero interest rates indefinitely. The stock markets responded by reaching fresh highs at the start of 2020, but the euphoria came to an abrupt end as the coronavirus started to spread around the world. When the pandemic took hold, governments took charge of crisis management, aided by the central banks’ generosity. The economic aid packages announced worldwide to support companies hit by interrupted production and supply chains and thus protect large numbers of jobs, together with expansionary monetary policies on the part of the central banks, helped the markets to withstand the crisis. Most recovered by the end of the year, when they were close to or even above the highs seen in the first two months. Politics having less impact At the political level, the US presidential election overshadowed everything else. The extensive wrangling both before and after the vote kept traders on their toes and repeatedly sent prices racing higher or lower. The net effect on share prices, however, was insignificant. Brexit had a considerable impact, especially at the start of 2020, but it took a back seat as the year progressed despite its great importance with regard to the economy and stock markets. Divergence in equity returns The year got off to a confident start, but the financial markets were hit hard when the coronavirus pandemic broke out in February 2020. With large parts of the world in lockdown during the spring, economic output collapsed to an unprecedented extent. Very few market participants probably thought back in April that the stock markets would rebound so dramatically before the end of the year. That said, not all shares followed the same trend. The lockdowns brought public life and global trade to a standstill. Value stocks rooted in the physical world crashed, while all things virtual rallied. The gulf between traditional firms and the winners of the digital age was clearer than ever. Numer- ous tech firms profited from the pandemic, including online retailers and videoconferencing software providers. Mainland China’s “A-shares” also stood out as the country (along with other Asian nations) handled the pandemic comparatively well, with the result that its economic output actually grew in 2020. The tourism sector, by contrast, suffered heavy losses. Devastated by travel bans as well as hotel and restaurant closures, many companies had to be bailed out by state aid. 9

Fund mArkets Performance of the key stock markets in 2020 Europe -20 -10 0 10 20 30 40 50 Sweden (OMX) Switzerland (SMI) Germany (DAX) Netherlands (AEX) Europe (Stoxx 50) France (CAC 40) Italy (MIB) UK (FTSE 100) Spain (IBEX 35) Nord and Latin America USA (Nasdaq Composite) USA (S&P 500) USA (Dow Jones) Brazil (Bovespa) Canada (S&P/TSX Composite) Mexico (IPC) Asia/Pacific Japan (Nikkei 225) Australia (S&P/ASX 200) Hong Kong (Hang Seng) 5.8% 4.3% 3.6% 3.3% -2.6% -5.0% -5.4% -11.5% -15.5% 43.6% 18.4% 9.7% 3.0% 2.2% 1.2% 18.2% 0.7% -3.4% Return in % (local cumency) Sources: NZZ, Onvista Swiss fund market Fund market growing despite pandemic According to the statistics on the Swiss fund market, the total volume stood at some CHF 1,324.6 billion at the end of December 2020, an increase of CHF 83.6 billion or 6.7% year-on-year. Equity and bond funds posted both significant capital gains and sizeable net inflows. With the exception of money market funds and alternative investments, all categories recorded a net increase in value. Impressive growth in equity funds Although 2020 is sure to be remembered as the year of the coronavirus, it began on a very positive note for the stock markets. Global equities reacted dramatically to the impact of the lockdowns around the world in March, losing as much as 30% in just a short time, but the markets then settled down relatively quickly. Tension eased through the spring and summer as the restrictions were gradually lifted, allowing economic activity to gather pace. This recovery was reflected in the stock markets. Between the summer and fall, equities remained doggedly stuck in a sideways trend. Rising infection numbers and the prospect of a very close result in the US presidential election deterred many investors from taking up new positions. The picture quickly turned positive in November, helped by the promise of vaccines being available soon. 11

Fund mArkets Mixed showing from the other categories The remaining fund categories – commodity funds, alternative investments, and others – showed mixed trends in 2020. It was first and foremost an extremely volatile year for commodity markets. Alternative investments only recorded sizeable net inflows in one month of the year. The end result was an outflow CHF 616 million. The volume invested in this asset class fell over the course of the year to CHF 15.8 billion. Precious metals investors had a fairly good year in 2020, with some metals performing very well indeed. There has been a demand overhang for palladium for some time now, and this resulted in a price increase of around 26%. Gold was up 22.2% at the end of the year. Silver fared even better with a gain of 44.1%, while copper gained 25%. The overall picture was also mixed for agricultural commodities and grains. There were decent increases in the price of wheat (9.4%) and cocoa beans (7%), but the price of coffee fell by 8.3%. With demand for crude oil falling dramatically in lockdown, storage capacity became scarce. Crude prices recovered somewhat after the spring but failed to return to the levels seen at the start of the year (Brent was down 23.4% year-on-year). The volume of the segment as a whole rose from CHF 44.1 billion to CHF 49.1 billion. The market share of the three fund categories taken together increased by 0.2 of a percentage point to 3.7%. Real estate funds bolstered by net inflows and value gains Last year may have marked a turning point for the real estate segment. The pandemic and the measures to combat it left their mark. While the “new normal” has hardly caused a price correction on the Swiss real estate market so far, hospitality, hotel, and tourism properties as well as some in the retail sector have come under pressure. The same is true for suburban office space and export-oriented machine tool manufacturing. In principle, however, the asset class still appears to be in demand, as a look at the performance of listed Swiss real estate investments shows. Volumes rose by CHF 4.4 billion year-on-year, with net inflows making up about CHF 39 million of that figure. With a volume of CHF 40.3 billion, real estate funds ranked among the smaller categories, but their growth caused their market share to increase slightly to 3%. SFA ARI® – indicator for real estate funds In April 2012, the Association launched the SFA ARI® investment yield indicator with a view to making it possible to compare the actual yields of listed real estate funds at the product level. The SFA ARI® is based on the investment yield statistics and is calculated quarterly (January, April, July, October) by SFD on the basis of the respective annual reports. The fund universe comprises the real estate funds listed on the Swiss Stock Exchange (SIX) that make direct real estate investments in Switzerland, with Switzerland being their sole investment country. In June 2020, the invest- ment yield as measured by the SFA ARI® stood at 5.87%. In all, 33 real estate funds with net assets totaling around CHF 37.7 billion were included in calculating the figure. Development of the SFA ARI® since 2015 7 % 6 % 5 % 4 % 2015 2016 2017 2018 2019 2020 (Q2) Source: SFD 13

Fund mArkets Development of the proportion of investment funds in the custody accounts of the respective customer segments Customer segment December 2018 December 2019 November 2020 Resident private customers Resident institutional investors Total resident customers Non-resident private customers Non-resident institutional investors Total non-resident customers Total of all customers 42% 47% 44% 44% 25% 28% 36% 41% 48% 45% 42% 24% 27% 36% 42% 49% 46% 43% 24% 27% 37% Source: SNB Continued high volumes for exchange-traded funds (ETFs) Turnover of exchange-traded index funds had risen steadily since 2013 before suffering a minor setback in 2018. Following a sustained recovery, 2019 turned out to be a record year. ETF turnover fell 9.9% year-on-year in 2020 to CHF 112.4 billion, but this is still a highly respectable level. At the end of 2020, there were 1,598 different ETFs listed on the Swiss Stock Exchange, spread across 28 issuers. In terms of investment focus, products covering traditional equity markets were still out in front with a 29.3% share. Bond ETFs had a 25% share of the market with 399 products. The number of ETFs for commodities and precious metals fell slightly to 91, with their market share at 5.7%. As regards trade sizes, the median was lower than ever at CHF 9,399, falling below CHF 10,000 for the first time. Development of the ETF segment on SIX Number of ETFs 1,600 Turnover on SIX Turnover in CHF millions 160,000 Number of ETFs on SIX 1,400 1,200 1,000 800 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 15 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Source: SIX

Fund mArkets Global fund market EUR 52.2 trillion in 140,714 funds Global fund volumes recorded their second-best quarter ever up to the end of September 2020, reaching EUR 52.2 trillion, with funds of funds accounting for EUR 3.6 trillion. This translated into a minimal decrease of EUR 0.5 trillion or 1% compared with the beginning of the year. At 140,714 products, the number of funds was higher than ever before. International mix stays the same Comparing the figures ascertained by EFAMA, the USA’s share of global fund assets at the end of September 2020 remained very high at 48.2%. China (3.7%) remained in third spot after Europe (32.6%), albeit with only a minimal lead over the next two countries on the list – this year Australia and Japan with 3.6% each. Looking at global fund assets by fund domicile, the USA is followed by Luxembourg (9%), Ireland (5.9%), Germany (4.6%), and France (3.8%). Breakdown of global fund assets by region and country USA 48.2% Others 2.6% Brazil 2.6% Australia 3.6% Japan 3.6% Canada 3.1% China 3.7% Source: EFAMA Europe 32.6% Slight shifts in the breakdown by fund category Over the past four years, there have been some discernible changes in the weightings of the individual fund categories. Bond funds suffered a temporary setback but still remained above their level from the end of 2015. Despite rising stock markets, equity funds barely increased their share. Money market funds were also flat. The “others” category has fluctuated between 8% and 10% over an extended period. Breakdown of global fund assets by category Fund category Equity funds Bond funds Mixed-asset funds Money market funds Others Q4 2017 42% 21% 18% 11% 8% Q4 2018 40% 21% 17% 12% 10% 17 Q4 2019 42% 21% 17% 12% 8% Q3 2020 41% 21% 17% 13% 8% Source: EFAMA

nAtionAl environment Financial Services Act (FinSA), Financial Institutions Act (FinIA), and related ordinances Entry into force on 1 January 2020 The FinSA and FinIA entered into force on 1 January 2020. Efforts to implement them were well under way in 2020. The transition periods specified in the FinIA gave existing licensees one year to implement the new rules, i.e. until the end of 2020. The FinSA, meanwhile, in principle gives financial service providers two years. The transitional provisions also specify deadlines for phasing out certain provisions of the old CISA. In summary, the existing conduct and organizational rules under the CISA will continue to apply to financial service providers until they have implemented the FinSA at the point of sale. This means that existing agreements and processes can be maintained, even if they are no longer fully compliant with the revised CISA. At the same time, however, it also means that only providers that have implemented the FinSA will be able to take full advantage of certain relaxed rules under the new legislation. This rule applies to both existing financial service providers and those newly entering the Swiss market. Affiliation to an ombudsman The current legal situation requires all financial service providers to affiliate to an ombudsman by the end of 2020. However, the draft blockchain/DLT legislation adopted in the fall session resulted in a relaxation of this requirement. Going forward, only financial service providers that serve retail clients and professional clients who have made a corresponding declaration (i.e. high-net-worth retail clients opting out) will have to affiliate to an ombudsman. In order to avoid a situation whereby financial service providers that serve solely institutional or “per se” professional clients have to affiliate to an ombudsman initially, only to be released from this requirement a few months later, the limitation on the ombudsman affiliation requirement decided by parliament is to be brought into force on the earliest possible date. Since it is first necessary to wait for the referendum deadline to expire, this is 1 February 2021. The future limitation on the affiliation requirement clearly reflects the will of parliament. With this in mind, the FDF published a specialist information notice on the subject in November 2020 in consultation with FINMA. It stated that FINMA would not enforce the 19 affiliation requirement for financial service providers that serve solely institutional and “per se” professional clients, which would theoretically have applied from 26 December 2020 to 31 January 2021. FINMA implementing regulation FINMA adopted its regulation implementing the FinSA and FinIA on 12 November 2020. This encompasses a new implementing ordinance to the FinIA as well as changes to existing FINMA ordinances and circulars. In addition, three circulars were repealed. The adjust- ments took effect on 1 January 2021 and thus before the end of the transitional periods stipulated in the FinSA and FinIA. Revision of self-regulation materials Supported by a working group, the Executive Board worked hard in 2020 to revise the Association’s self-regulation materials and model documents. The changes required by the FinSA and FinIA and the new CISA must, as a rule, be recognized or acknowledged by FINMA. This can only happen once FINMA has signed off its ordinances and circulars. Based on the new Ordinance to the Financial Market Supervision Act (FINMASA Ordinance), the possibility of FINMA having to allow for additional consultations within the federal government and with market participants in relation to its recognition of the self-regulation materials cannot be ruled out. This means that the revised self-regulation materials will probably start to be published from the end of the second quarter of 2021. All existing SFAMA model documents can continue to be used until the two-year transition period ends on 1 January 2022. Limited qualified investor fund (L-QIF) Background In a competitive international market, Swiss funds are often not investors’ first choice, especially as regards alternative investments for professional investors. High time and cost pressure in the approval process mean that even Swiss clients often favor foreign collective investment schemes. The Swiss limited qualified investor fund (L-QIF) is intended as an innovative response to this problem. The FC took up the idea, which can be traced back to an initiative put forward by the Association, on 5 September 2018 and

nAtionAl environment two organizations aim to ensure that asset managers provide customers with information that is accurate and not misleading. Global Investment Performance Standards GIPS® Background The Global Investment Performance Standards (GIPS) are internationally used and recognized principles for calculating and presenting the performance of invest- ments. The Asset Management Association Switzer- land is their Country Sponsor in Switzerland. With the aid of its group of experts – comprising representatives of fund management companies, asset managers, banks, and audit firms – the Association promotes the use of the GIPS standards in Switzerland, organizes seminars and workshops, and coordinates the positions of Swiss GIPS users with regard to the further development and interpretations of the standards. It also serves as the link for cooperation with the international GIPS bodies and the CFA Institute. 2020 GIPS standards The 2020 GIPS standards entered into force on 1 January 2020. GIPS-compliant asset managers had to implement the latest GIPS reporting requirements by the end of 2020. Activities in the year under review The Asset Management Association Switzerland’s GIPS expert group held its GIPS Web Conference on 3 December 2020. It included a live question-and- answer session as well as practical tips on complying with the 2020 GIPS standards. test FOEN climate compatibility tests in 2020 In the Paris Agreement, the international community committed to making finance flows climate-compatible. Since Switzerland is a signatory, the federal government is providing methodologies and tools to implement the Agreement. The Federal Office for the Environment (FOEN), in close cooperation with the SIF, introduced a climate compatibility for financial market participants in 2017. The test, known as the Paris Agreement Capital Transaction Assessment (PACTA), is based on a standardized method for analyzing global equities, corporate bonds, and credit portfolios. It is conducted on a voluntary basis and was open to asset managers for the first time in 2020, which the Association welcomes. The data entry phase ran from March to May 2020. Individual test reports were sent to participants in the fall. The FOEN published its overall report containing the aggregated, anonymized data in November. Activities of the Association The Association published its Key Messages and Recommendations for Sustainable Asset Management together with Swiss Sustainable Finance (SSF) on 16 June 2020. The document was written by a joint working group comprising ESG practitioners. The key messages are general views on sustainable finance. The recommendations, meanwhile, are predominantly technical and focused on the investment process. They are intended to serve as a guide for asset managers. Factoring ESG criteria into the investment strategy – as a core element of the investment philosophy, so to speak – plays a part in generating higher risk-adjusted returns over the long term. Asset managers therefore need to assess the social, economic, and environmental impact of their investments and embed their values within a policy of sustainability. Standardized, measur- able reporting is essential for creating the required transparency, but requires companies and research providers to make reliable, high-quality data available. The Asset Management Association Switzerland is also in close contact with the SIF, the FEON, and FINMA. In addition, it is keeping track of developments in EU regulation with regard to sustainable finance. The Association set up a joint working group with SSF in the fall that is working on product definitions and specifications. The transparency also 21

nAtionAl environment Relations with authorities and associations in Switzerland FINMA FINMA was one of the Association’s most important partners in 2020, with extensive bilateral contact and various meetings providing a platform for constructively discussing various topics with the supervisory authority’s specialists. Swiss Federal Tax Administration (FTA) Ad-hoc discussions were held with the tax authority in 2020, during which the Association was able to address a number of issues, some of them highly complex, and express its concerns. economiesuisse Representatives of the Executive Board sat on the legal affairs committee of the Swiss business federation economiesuisse in 2020, as well as its working groups on financial market legislation and European policy, putting across the interests of the Asset Management Association Switzerland’s members directly. Other authorities and associations In 2020, the Association had extensive contact with the Occupational Pension Supervisory the SIF, Commission the Swiss Bankers Association (SBA). The Executive Board was also in contact with other associations in Switzerland, including: (OPSC), and • Multichain Asset Managers Association (MAMA), Zug • Swiss Pension Fund Association (ASIP), Zurich • Swiss Insurance Association (SIA), Zurich • Swiss Private Equity & Corporate Finance Association (SECA), Zug • Swiss Sustainable Finance (SSF), Zurich • Association of Foreign Banks in Switzerland (AFBS), Zurich • Swiss Association of Asset Managers (SAAM), Zurich Advertising on www.swissfunddata.ch The advertising service on the SFD website was pre- viously available exclusively to existing clients. Thanks to a new cooperation with audienzz.ch, non-clients can now place advertising on www.swissfunddata.ch as well. Since the cooperation began in October 2020, usage of this marketing channel has risen steadily. Further sharp increase in website use Use of the SFD website once again rose markedly year-on-year: • Average number of users per month: up 45% from 39,451 to 57,154 • Average number of page views per month: • up 41% from 294,830 to 415,969 This makes it clear that the investments made in the website and its responsive design in recent years have produced a positive response from the market. The website has established itself as a vital reference for investors with an interest in funds. Over 70% of users are in Switzerland, followed by Germany, Luxembourg, and the USA. Some 52% of users are professional investors (asset managers, banks, pension funds, insurers), the rest retail investors. Fees unchanged The number of unit classes published on the website increased by 9.1% in 2020. In addition, 12 fund providers made use of SFD’s services for the first time, either as a publication medium or as a marketing platform. Thanks to this steady growth and SFD’s non-profit status, its range of services were continually expanded during the year without increasing the fees charged. COVID-19 and business continuity management (BCM) SFD’s BCM concept has always been based on staff working from home, and all staff were instructed to do so in response to the pandemic. The infrastructure was already in place, and no extra measures were needed to ensure that all processes and services could operate as normal without interruption. 23

internAtionAl environment The main focus areas in 2020 were the impact of various EU rules being implemented, sustainable finance, and Brexit. Much remained unclear with regard to the last of these. At the level of the EU and EU countries Alternative investment funds (AIF), Alternative Investment Fund Managers Directive (AIFMD) The European Securities and Markets Authority (ESMA) published its AIF report, containing details of market size and developments, in January 2020. It found that AIFs accounted for EUR 5.8 trillion or around 40% of the total EU fund industry at the end of 2018. In March 2020, ESMA opened a public consultation on its draft guidance to address leverage risks in AIFs in response to the recommendations made by the European Systemic Risk Board (ESRB) in this regard. In connection with the review of the AIFMD, the European Commission published its report on the Directive’s scope of application and its impact on 10 June 2020. The report concludes that the AIFMD is a significant pillar of the Capital Markets Union, ensures a high level of investor protection, has played an important role in creating an internal market for AIFs, and facilitates the monitoring of risks to financial stability. However, it also identified room for improve- ment in various respects. In August 2020, ESMA sent the European Commission a detailed analysis of the AIFMD, complete with specific recommendations. Topics addressed include the delegation of tasks to third parties (e.g. third-country firms) and the possibility of harmonizing the AIF and UCITS regimes. The Commission opened a public consultation on the AIFMD review on 22 October 2020. The questionnaire asks market participants about the Directive’s scope, investor protection, international relations, and financial stability, among other things. Brexit The United Kingdom (UK) left the EU on 31 January 2020 and entered a transition period until the end of 2020. Negotiations between the EU and the UK over an agreement on future relations were finally concluded before the end of the year. During the transition period, the bilateral agreements between Switzerland and the EU continued to apply to the UK. The FC’s “Mind the Gap” strategy has ensured legal continuity after Brexit. A series of new agreements have been signed with the UK concerning trade, migration, road and air traffic, and insurance. The Swiss and UK finance ministers signed a declaration of intent on 30 June 2020 with regard to deepening relations in the area of financial services. A subsequent agreement will enable cross-border market access for a broad range of financial services encompassing insurance, banking, asset management, and capital market infrastructure. The agreement is to be based on the principle of mutual recognition of financial market regulation and supervisory frameworks. The Asset Management Association Switzerland is keeping a keen eye on developments and maintaining close contact with representatives of the UK asset manage- ment industry. Capital Markets Union (CMU) The CMU is an EU initiative aimed at improving the depth and integration of the EU Member States’ capital markets. To this end, the European Commission pro- posed an action plan in 2015 for gradually expanding the CMU. It published a revised version of the plan in 2020 that proposes 16 targeted measures to move the CMU forward. The action plan has three key objectives. Firstly, it is intended to support the economic recovery by making financing more accessible. Secondly, it aims to make the EU a safe place for saving and 25

impacts, and the provision of sustainability-related information with respect to financial products. The ESAs published draft regulatory technical standards (RTS) on 23 April 2020 that augment and add precision to the EU Disclosure Regulation. They contain proposals concerning the content, methodology, and presentation of ESG disclosures at the company and product levels. The consultation paper additionally includes proposals on applying the “do no significant harm” (DNSH) prin- ciple. The public consultation ended on 1 September 2020. The RTS are expected to enter into force at the start of 2022. The EU Taxonomy Regulation entered into force on 12 July 2020. It is intended to establish a unified classification system for defining environmentally sustainable economic activities that focuses on the following: 1. mitigating climate change; 2. adapting to climate change; 3. sustainable use and protection of water and marine resources; 4. transition to a circular economy; 5. pollution prevention and control; 6. protection and restoration of biodiversity and ecosystems. The European Commission said that it intends to use the Taxonomy to develop the EU’s Green Bond Standard and Ecolabel for Retail Financial Products. It will also set out technical screening criteria for specific activities in connection with the Taxonomy. The first company reports and disclosures in accordance with the Taxonomy Regulation are due at the start of 2022. ESMA published a consultation paper on Article 8 of the Taxonomy Regulation in November 2020. Article 8 specifies the content, methodology, and presentation of the key performance that non-financial undertakings and asset managers are required to disclose. The corresponding delegated act is expected to be adopted by 1 June 2021. indicators (KPIs) The amendment to the Benchmark Regulation that entered into force at the end of 2019 introduced two new categories of benchmark intended to make it easier for investors to compare the carbon footprints of their investments: the Climate Transition Benchmark (EU CTB) and the Paris-aligned Benchmark (EU PAB). Use of these benchmarks is voluntary, but defining a portfolio as aligned with either of them results in disclosure requirements. The new requirements apply internAtionAl environment with effect from 30 April 2020. ESMA published a consultation paper in March 2020 on draft RTS relating to the Benchmark Regulation. The paper contains back- ground information as well as details of the approach and the draft RTS proposals on governance regulations, methods, the reporting of breaches, mandatory administra- tion of critical benchmarks, and non-significant bench- marks. The European Commission held consultations on delegated acts supplementing the Benchmark Regulation in April and May 2020. The delegated acts relating to the following points were adopted in July 2020: • Minimum standards for the EU CTB and EU PAB • Minimum content of the explanation on how ESG factors are reflected in the benchmark methodo- logy • Explanation in the benchmark statement of how ESG factors are reflected in the benchmark The consultation on the draft delegated acts relating to the UCITSD, AIFMD, and MiFID II ended on 6 July 2020. The drafts are intended to incorporate sustainability factors into the individual directives in terms of product governance, suitability assessment, and organizational requirements. The amendments are expected to apply from the end of 2021 or the start of 2022. Undertakings for collective investment in transferable securities (UCITS), UCITS V Directive On 16 July 2020, ESMA published its Guidelines on liquidity stress testing in UCITS and AIFs. They apply as of 30 September 2020. ESMA published its guidelines on performance fees in UCITS and certain types of AIFs on 5 November 2020. Their objective is to promote greater convergence and standardization with regard to performance fees and promote convergent supervision by competent authorities. In particular, they aim to ensure that the models used prevent undue costs being charged to funds and their investors. On 9 November 2020, ESMA launched a consultation on guidelines on marketing communication under the Regulation on facilitating cross-border distribution of UCITS (and also AIFs). The final guidelines are expected in August 2021. 27

Focused strategy The Association works independently and proactively to support efforts to further strengthen the fund and asset management industry in Switzerland. Our activities are geared to the three elements of the value chain for Swiss and foreign collective investment schemes: administration, asset management, and sales. The focus is on increasing the appeal of Switzerland as a location for • • • the production of collective investment schemes asset management the distribution of Swiss and foreign investment products in Switzerland and abroad The Association seeks to work together constructively with the federal government and the authorities, our activities being centered on the interests of our mem- bers. Efficient organization The Association has a streamlined organization and a flat hierarchy. The specialist committees do the ground- work in the decision-making process. The Executive Board also sets up ad-hoc working groups to support it and deal with clearly defined tasks. The structure shown above ensures a high degree of efficiency and enables the limited resources available to be used strategically. foreign collective Membership as a hallmark The Asset Management Association Switzerland is open to all fund management companies, asset managers, representatives of investment schemes, and service providers active in the asset management area, regardless of their domicile or sector. Unlike most of fund associations in Europe, it also accepts representa- tives of foreign collective investment schemes as full members. By their presence on the market, these institutions also make a significant contribution to the importance and good reputation of the Swiss fund and asset management industry. the other national

Specialist committees Areas of activity The specialist committees undertake the preparatory work for decisions relating to their specific areas, which they then submit to the Board of Directors and the Executive Board. Such commitment and active support for the Association’s activities are not taken for granted, and we would like to express our thanks to all involved. The Association currently has the following specialist committees: • Alternative Investments • ETFs & Indexed Investments • Real Estate Funds • Processes & Operations • • • Risk Management • Taxes • Distribution & Marketing Legal & Compliance Legal & Compliance Asset Management Alternative Investments specialist committee Chair: Régis Martin • Holding the second AIMA & SFAMA Swiss Investing Forum in Zurich • Discussing the focus topics of hedge funds, private • multi-asset-class solutions, and private debt “Deep dive” into the potential impact of COVID-19 on business models for providers of alternative investments • Preparing for an event on the theme of sustainability and alternative investments ETFs & Indexed Investments specialist committee Chair: Markus Götschi • Focus group discussion on liquidity risks and how ETFs handle them • Discussing listing possibilities for various unit classes • Continuing discussions on data requirements for recording the holdings of passive investment products in Switzerland the AssoCiAtion’s ACtivities Real Estate Funds specialist committee Chair: Roger Hennig • FinSO/FinIO/CISO transitional provisions • Discussing liquidity requirements resulting from high volatility • Reviewing product-specific SFAMA guidelines with reference to the FinSA and FinIA • COVID-19 commercial rents legislation/market update • Discussing the consolidated draft of the SFAMA Guidelines for Real Estate Funds Processes & Operations specialist committee Chair: Samuel Mürner • SFAMA circulars on COVID-19 (valuation, swing- ing single pricing, and EU measures) • Global principles for market data costs • Practical impact of withholding tax reform • Performance guidelines: valuation of ETFs • • War Material Initiative • Changes to the Association’s self-regulation in Introduction of stamp duty on redemptions in kind connection with the FinSA/FinIA Legal & Compliance specialist committee Chair: Diana Imbach Haumüller • Discussing the Federal Council’s definitive versions of the FinSO and FinIO (e.g. as regards transition periods and delegation) as well as the revision of self-regulation materials in line with the FinSA/ FinIA • Discussing various key topics such as sustainable asset management, the L-QIF, and EU antitrust law • SFAMA circulars on COVID-19 (stay of deadlines, valuation, swinging single pricing, and EU mea- sures) • Questions regarding implementation of the FinSA/ FinIA (fund management company as non-fi- nancial service provider, transition periods, AMLA amendment, ombudsman, organizational require- ments under the FinSA/FinIA, designing a web- site for qualified investors) • SFAMA/SSF – Key Messages and Recommenda- tions for Sustainable Asset Management (16 June 2020) 33

Expert point of contact In keeping with their importance for the Swiss financial center and for investors, asset management and collective investment schemes receive regular coverage in the media. Accordingly, there was a rise in the number of inquiries from various sides once again in 2020. Key points of interest were Switzerland as an asset management location, the draft financial legislation, and the performance of individual fund categories. The Association positioned itself as an expert point of contact on these and other issues. Public affairs Representatives of the Asset Management Association Switzerland had extensive contact with national authorities, politicians, and associations in 2020, with the aim of ensuring optimal frameworks for the Swiss fund and asset management industry. The Association was supported in this by an external public affairs specialist. Media work The Association’s media relations activities in 2020 included: • Eight media releases on current issues and the Association’s position as well as 12 on the monthly fund market statistics 21 articles and interviews • • Various statements in electronic media • Meetings with selected journalists • Answering a large number of inquiries from media representatives As a result, it was mentioned in around 200 articles in the national and international press. the AssoCiAtion’s ACtivities Changes in the Association New President and Vice President Iwan Deplazes, Head of Asset Management at Swisscanto Invest by Zürcher Kantonalbank, was elected as the Association’s new President to succeed Felix Haldner, Partner at Partners Group. Charlotte Bänninger, Global Head of Fixed Income and President of UBS Asset Management Switzerland AG, took over as Vice President from Martin Jufer, member of the Group Management Board and Region Head Continental Europe at GAM Holding. New members of the Board of Directors The following were newly elected to the Board of Directors • Michel Degen, CEO and Head of Asset Manage- ment Switzerland & EMEA, Credit Suisse Asset Management (Schweiz) AG, succeeding Patrick Tschumper, Managing Director, Credit Suisse Investor Services Laurent Ramsey, Managing Partner Pictet & Cie Group SCA, succeeding Nicolas Tschopp, General Counsel, Pictet Asset Management • • Mirjam Staub-Bisang, CEO, BlackRock Asset Management Switzerland Limited, succeeding André Bantli, Managing Director and Head of Continental Europe EMEA Retail, BlackRock Asset Management Switzerland Limited The Association would like to thank the departing members of the Board of Directors for their dedication. Adrian Schatzmann: new CEO as of 1 January 2021 Adrian Schatzmann became CEO of the Asset Management Association Switzerland on 1 January 2021. He founded Clear Minds Investment AG and had been its CEO since 2017. He has also held a number of consulting positions, including with the SBA. Before starting Clear Minds, Adrian Schatzmann led UBS Wealth Management’s global sales and distribution business for funds and ETFs. He studied economics at the University of St. Gallen. Markus Fuchs will continue to provide operational support for the time being, before moving on to focus on selected mandates in the public and private sectors. Stephan Heckendorn stepped down as Senior Counsel in 2020. The Associa- tion thanks both men for their hard work over many years. 35

the AssoCiAtion’s ACtivities Executive Board Markus Fuchs Managing Director Diana Imbach Haumüller Senior Legal Counsel, Deputy Managing Director Lorenz Arnet Senior Counsel Katja Brunner Senior Legal Counsel Sandra Schneider Senior Legal Counsel Annina Brusil Support Eva De Matteis Communications Jasmin Fraefel Assistant Sabine Walker Senior Marketing Manager 37

members Active members 1741 Fund Solutions AG, St. Gallen www.1741group.com 1875 Finance SA, Geneva www.1875.ch Aberdeen Standard Investments (Switzerland) Ltd, Zurich www.aberdeenstandard.ch ACE & Company SA, Geneva www.aceandcompany.com ACOLIN Fund Services AG, Zurich www.acolin.com AG für Fondsverwaltung, Zurich www.immofonds.ch Albin Kistler AG, Zurich www.albinkistler.ch AllianceBernstein Schweiz AG, Zurich www.alliancebernstein.com Banca del Sempione SA, Lugano www.bancasempione.ch Banca Popolare di Sondrio (Suisse) SA, Lugano www.bps-suisse.ch Banca Zarattini & Co. SA, Lugano www.zarattinibank.ch Banque Bonhôte & Cie Ltd, Neuchâtel www.bonhote.ch Banque Cantonale de Genève, Geneva www.bcge.ch Banque Cantonale Vaudoise BCV, Prilly www.bcv.ch Banque Cramer & Cie SA, Geneva www.banquecramer.ch BERNINVEST AG, Bern www.berninvest.ch BlackRock Asset Management Switzerland Limited, Zurich www.blackrock.com/ch Allianz Global Investors (Switzerland) AG, Zurich www.ch.allianzgi.com BNP Paribas (Suisse) SA, Geneva www.bnpparibas.com ARM Swiss Representatives SA, Gland www.armswissrep.com BNP Paribas Securities Services, Zurich www.securities.bnpparibas.com Avadis Vorsorge AG, Zurich www.avadis.ch Bordier & Cie Banquiers Privés, Geneva www.bordier.com AXA Investment Managers Switzerland Ltd, Zurich www.axa-im.ch Bovay & Partenaires SA, Lausanne www.bovay.ch Ayaltis Inc., Zurich www.ayaltis.com BWM Ltd, Wilen b. Wollerau www.bwm.ch Baloise Real Estate Management Ltd, Basel www.baloise-asset-management.com/de/ch/immobilien CACEIS (Switzerland) SA, Nyon www.caceis.com 39

members HBM Partners Ltd, Zug www.hbmpartners.com LGT Capital Partners Ltd, Pfäffikon SZ www.lgtcp.com Helvetia Asset Management AG, Basel www.helvetia.ch LLB Swiss Investment Ltd, Zurich www.llbswiss.ch Helvetica Property Investors AG, Zurich www.helvetica.com Lombard Odier Asset Management (Switzerland) SA, Petit-Lancy www.lombardodier.com HSBC Global Asset Management (Switzerland) Ltd, Zurich www.assetmanagement.hsbc.com LUKB Expert Fondsleitung AG, Lucerne www.expertfonds.ch Hyposwiss Private Bank Genève SA, Geneva www.hyposwiss.ch Lyxor Asset Management, Paris www.lyxor.com Intesa Sanpaolo Private Bank (Suisse) Morval Ltd, Lugano www.intesasanpaolopbmorval.ch INVESCO Asset Management (Switzerland) Ltd, Zurich www.invesco.ch Investissements Fonciers SA, Lausanne www.lafonciere.ch IPConcept (Schweiz) AG, Zurich www.ipconcept.com J. Safra Sarasin Investmentfonds Ltd, Basel www.jsafrasarasin.com JPMorgan Asset Management (Switzerland) LLC, Zurich www.jpmam.ch Janus Henderson Investors, Zurich www.janushenderson.com Jupiter Asset Management (Switzerland) AG, Zurich www.jupiteram.com Kieger AG, Zurich www.kieger.com Man Investments (CH) AG, Pfäffikon SZ www.man.com Man Investments Ltd, Pfäffikon SZ www.man.com MFM Mirante Fund Management SA, Lausanne www.mirante.ch Mirabaud Asset Management (Switzerland) Ltd, Geneva www.mirabaud-am.com Mont-Fort Funds AG, Verbier www.montfortfunds.com Nordea Asset Management Switzerland LLC, Zurich www.nordea.ch Notz, Stucki & Cie SA, Geneva www.notzstucki.com Partners Group AG, Baar-Zug www.partnersgroup.com Pensimo Fondsleitung AG, Zurich www.pensimo.ch Pictet Asset Management SA, Geneva www.assetmanagement.pictet 41

members Tareno Ltd, Basel www.tareno.ch Tell AG, Zurich www.tell.fund Twelve Capital Ltd, Zurich www.twelvecapital.com Associate members Affiliated Managers Group (Switzerland) AG, Zurich www.amg.com Alpha Financial Markets Consulting Switzerland SA, Zurich www.alphafmc.com UBS Asset Management Switzerland AG, Zurich www.ubs.com Altenburger Ltd, Geneva www.altenburger.ch UBS Fund Management (Switzerland) AG, Basel www.ubs.com/fms AMUNDI Suisse SA, Geneva www.amundi.com Unigestion SA, Geneva www.unigestion.com United Private Bank, UBP Ltd, Geneva www.ubp.com Valiant Holding AG, Gümligen www.valiant.ch Vanguard Investments Switzerland GmbH, Zurich www.vanguard.ch VERIT Investment Management AG, Zurich www.verit-investment-management.ch Vontobel Fund Services Ltd, Zurich www.vontobel.com ASMA Asset Management Audit & Compliance SA, Geneva www.amaudit.ch Baker McKenzie Zurich, Zurich www.bakermckenzie.com Baloise Asset Management Switzerland Ltd, Basel www.baloise-asset-management.com Bank Julius Bär & Co. Ltd, Zurich www.juliusbaer.com Bär & Karrer Ltd, Zurich www.baerkarrer.ch BDO Ltd, Zurich www.bdo.ch Zurich Invest AG, Zurich www.zurichinvest.ch BlueBay Asset Management AG, Zurich www.bluebay.com BlueStar Investment Managers SA, Lugano www.bluestar-im.ch Bratschi Ltd, Zurich www.bratschi.ch BRP Bizzozero & Partners SA, Geneva www.brpsa.com 43

members Neuberger Berman (Switzerland) GmbH, Zurich www.nb.com T. Rowe Price (Switzerland) LLC, Zurich www.troweprice.com Tax Partner AG, Zurich www.taxpartner.ch Threadneedle Portfolio Services AG, Zurich www.columbiathreadneedle.com VISCHER AG, Basel www.vischer.com Walder Wyss Ltd, Zurich www.walderwyss.com New Bank of Argovie Ltd, Brugg www.nab.ch Niederer Kraft Frey Ltd, Zurich www.nkf.ch Northern Trust Switzerland Inc., Basel www.northerntrust.com OBERSON ABELS Ltd, Geneva www.obersonabels.com Pestalozzi Attorneys at Law Ltd, Zurich www.pestalozzilaw.com PostFinance Ltd, Bern www.postfinance.ch PRAGER DREIFUSS Ltd, Zurich www.prager-dreifuss.com PricewaterhouseCoopers AG, Zurich www.pwc.ch Primecoach AG, Wollerau www.primecoach.ch Profidata AG, Urdorf www.profidatagroup.com Schellenberg Wittmer Ltd, Geneva www.swlegal.ch SimCorp Schweiz AG, Zurich www.simcorp.com Suter Howald Rechtsanwälte, Zurich www.suterhowald.ch 45

The present English version is a translation of the original document in German. Publisher Asset Management Association Switzerland Dufourstrasse 49 P.O. Box CH-4002 Basel Phone: +41 61 278 98 00 www.am-switzerland.ch office@am-switzerland.ch Editing PR-Box GmbH Seraina Conrad Sonnmattstrasse 1 CH-5304 Endingen Phone: +41 79 416 57 52 www.pr-box.ch seraina.conrad@pr-box.ch R-Consult Markus Röthlisberger Bibersteinerstrasse 4 CH-5022 Rombach Phone: +41 62 827 37 47 info@r-consult.ch Graphic design Dieter Aegerter Keltenweg 37 CH-4125 Riehen Phone: +41 79 653 13 92 dieter.aegerter@magnet.ch Printing Druckerei Bloch AG Talstrasse 40 CH-4144 Arlesheim Phone: +41 61 701 19 00 www.blo.ch info@blo.ch