Asset Management in Switzerland

Lantern Fund Forum – Lugano, 21 November 2016

Markus Fuchs, Managing Director SFAMA

Table of Contents

1. Who owns and who manages assets in Switzerland?

2. Swiss asset management in the global context

3. A word of caution on the numbers

4. Regulatory convergence in the EU: Consequences for Switzerland

5. Swiss Asset Management – fit for export?

6. Institutional asset management – an opportunity for Switzerland?

7. Conclusions / priorities for Swiss Asset Management

Who owns and who manages assets in Switzerland?

Chapter I

Securities Holdings in Client Bank Accounts (in CHF bn)

Discretionary Mandate Assets Managed in Switzerland (in CHF bn)

Source: BCG, SFAMA Market Sizing Overview, September 2016

1′000

800

600

400

200

0

200

(48%)

Corporates and Institutions Private Investors

420

220

(52%)

820

160

(20%)

660

(80%)

Swiss Investors

Foreign Investors

Fund Assets Managed in Switzerland (in CHF bn)

Source: BCG, SFAMA Market Sizing Overview, September 2016

320

1′000

200

400

600

800

0

Foreign collective investments managed in

Switzerland based on SFAMA survey

2015, in CHF bn

730

1′000

200

400

600

800

0

Assets in Swiss collective investment schemes

in Swiss banks customer deposits

2015, in CHF bn

Source: SFD, in CHF bn March 2016

in %

UBS 226.0 26.07 %

Credit Suisse 140.2 16.18 %

Swisscanto 79.2 9.14 %

Pictet 49.4 5.71 %

BlackRock 41.4 4.78 %

GAM 28.7 3.31 %

Lombard Odier 20.4 2.36 %

Swiss Life 13.9 1.60 %

Vontobel 13.4 1.55 %

Zurich 12.9 1.50 %

Top 10 625.9 72.19 %

Total Swiss promoters 100.0 %

Top 10 Fund Promoters in Switzerland: AuM and Market Share

Swiss asset management in the global context

Chapter II

Global AuM Growth

Source: BCG, July 2016

Assets under Management, 2007- 2015 Breakdown by Region (USD Trillions)

Source: BCG, July 2016

European AuM at End 2013 (EUR billion) and AuM / GDP (Percent)

Source: EFAMA, April 2015

A word of caution on the numbers

Chapter III

Top Asset Management Players

Asset managers ranked by global assets under management (in €bn)

Source: IPE Reference Hub / The top 400 asset managers 2016

Company Country Global

AUM in €bn

1 BlackRock US 4’398

2 Vanguard US 3’092

3 State Street US 2’066

4 BNY Mellon US 1’493

5 J.P. Morgan US 1’361

…

24 UBS Asset Management CH 597

…

189 Partners Group CH 46

Collective Investment Schemes in Switzerland

Source: State Secretariat for International Finance Matters SIF, April 2016

Chapter IV

Regulatory convergence in the EU: Consequences for Switzerland

• Key driver for regulation: The markets

Most Important Players in the International Financial Architecture

Source: SIF: Report on international financial and tax matters 2016, page 11

SMI: 30.06.1988 – 31.10.2016

1998

Monetary Crisis /

Asia Crisis / LTCM

01.11.2007

Deadline for the MiFID

Implementation by the EU Member

States

22.07.2013

Deadline for the AIFMD

Implementation

21.04.2004

Publication of the

2004/39 Directive

(MiFID)

30.04.2009

AIFMD-Proposal from

the EU-Commission

SMI-Chart: http://www.finanzen.net/index/SMI/Seit1988

11.11.2010

AIFMD-Adoption by EU-

Parliament

03.07.2017

Deadline for the MiFID II

Implementation

The Swiss Financial Centre and its Dynamic Environment

Source: State Secretariat for International Financial Matters SIF: Report on international financial and tax matters 2015, page 11

Chapter V

Swiss Asset Management – fit for export?

Switzerland - Europa

Relation Switzerland – EU/Europe: A difficult question!

Swiss Made Asset Management – fit for export?

Switzerland in the Sandwich

Chapter VI

Institutional asset management – an opportunity for Switzerland?

• The Key Driver for Asset Management: Demographic Change

Demography – Challenge and Opportunity for AMs

Source: PK Statistic

(Swiss) Asset Management – Growth Opportunities

Objective: Increase of institutional assets managed out of Switzerland

Institutional Assets

Switzerland

AuM 2020: USD 1’890 bn

CAGR 2012 – 2020: 1,9%

Global

AuM 2020: USD 101’700 bn

CAGR 2012 – 2020: 6,0% Primarily:

Social security

systems

Sovereign

wealth funds

Source: AuM and CAGR: 2014 Estimates PWC, BCG

Chapter VII

Conclusions / priorities for Swiss Asset Management

Priorities AM Platform: Focus

1. Market access / exportability of Asset Management

2. Regulation of Asset Management and for Asset

Managers (FIDLEG, FINIG and subsequent legislation,

standards, supervision)

3. Pension topics

4. Asset Management as a brand („Branding“ AM in

Switzerland and abroad)

5. [Future topics for Asset Management]

Starting position

Private Banking «under scrutiny» / shrinking investment banking activities

Completion: AM services for wealth managers and insurance companies

Demography as the key driver for Asset Management

Expansion of Asset Management to an independent and supporting pillar of the Swiss

financial centre

Swiss Asset Management: Not a Start-Up – Building on existing strengths

Switzerland is already a globally successful wealth management place

Switzerland has a long history in private banking and asset management business

Switzerland has numerous location advantages

Frame conditions need to be aligned with international standards

Compatibility with requirements of foreign regulations

Increase of international competitiveness

Exportability / market access must have top priority

Summary: «Swiss Asset Management» /

Key Messages

Thank you for your kind attention!

Any questions?

The Swiss Funds & Asset Management Association SFAMA (SFAMA), which was

established in 1992 with its registered office in Basel, is the representative

association of the Swiss fund and asset management industry. Its members include

all the major Swiss fund management companies, many asset managers, and

representatives of foreign collective investment schemes. Among SFAMA’s

members there are also numerous other service providers operating in the asset

management sector. SFAMA is an active member of the Brussels-based European

Fund and Asset Management Association (EFAMA) and the International Investment

Funds Association (IIFA) in Montreal. For further information, please visit

www.sfama.ch. You can also follow us on Twitter @SFAMAinfo.