Private Client Services Wealth Management

Habib Bank AG Zurich HBZ has a long tradition and a unique position

Banking tradition since 1941 Habib Bank AG Zurich (HBZ) draws on a rich tradition of commerce and banking dating back to 1941 when its predecessor, the pioneering , was founded in British India. HBZ, as we know it today, was incorporated in Zurich, Switzerland – a major financial center and the heart of the global Private Banking industry – in 1967.

Family-owned – a different approach to reputation and privacy The Habib family, which has been committed to banking for five generations, vouches for the firm’s excellence with its name and reputation.

Service with Security for over 50 years

2 HBZ Group Financial Highlights

Balance Sheet 2016 2015 2014 2013 2012

Total Assets 11'449 10'583 9'804 7'772 7'850

Liquid Assets 1'301 1'043 941 853 687

Advances 3'319 3'195 3'408 2'871 2'351

Client Deposits 9'314 8'696 8'018 6'398 6'289

Reserves 834 798 782 703 704

Shareholder's Equity 1'047 1'000 987 873 877

For further details, kindly download the latest HBZ annual report under www.habibbank.com

«The Banker» magazine ranked HBZ in 2017 as the • 4th Most Sound Bank in Switzerland and as the • 231st Most Sound Bank in the World

The Banker Magazine1 2017 2016 2015 2014 2013 2012

World Ranking in Soundness2 231 204 166 126 129 152 (out of 1'000 Banks)

Swiss Banking in Soundness2 443555 (out of 266 Banks)

Swiss Banking in Tier 1 Capital3 27 27 27 27 27 27 (out of 266 Banks)

1 «The Banker» is an international financial affairs publication owned by «The Financial Times Ltd». The magazine was first pub- lished in January 1926. «The Banker» is the world's premier banking and data analyst of the banking industry (www.thebanker. com) 2 Soundness defined as Capital Asset Ratio = Leverage Ratio (Tier 1 Capital/Total Assets) 3 Tier 1 Capital defined as per latest BIS Guideliens (Basel III Rules)

3 Our global network

HBZ Group constists of 346 Offices, 5'073 Employees (as per 31 December 2016)

South Africa: HBZ Subsidiary: HBZ Bank Ltd (9 Branches) Canada: HBZ Subsidiary: : Habib Canadian Bank HBZ Branches: (3 Branches) Nairobi (3 Branches) Mombasa (1 Branch) : HBZ Subsidiary: UAE: London (5 Branches), SouthHBZ Branches: Africa: Glasgow, Manchester, HBZDubai Subsidiary: (5 Branches) Leicester, Birmingham SouthSharjah Africa:(1 Branch) HBZ Subsidiary:HBZ Bank Ltd (9 Branches) Canada: Abu Dhabi (2 Branches) Switzerland:Switzerland HBZ Bank+ 1 Subsidiary Ltd (9 Branches) Company Canada:HBZ Subsidiary: Kenya: Zurich, HBZ Head Office + Branch HBZ Services FZ LLC HBZ Subsidiary:HabibZurich, Canadian HBZ Head Bank Office Kenya:HBZ Branches: Habib(3 CanadianBranches) Bank HBZ Branches:Nairobi (3 Branches) (3 Branches) NairobiMombasa (3 Branches) (1 Branch) SouthUnited Africa: Kingdom United Kingdom: Mombasa (1 Branch) UnitedHBZHBZHBZ Kingdom: Subsidiary: Subsidiary: Subsidiary: UAE: HBZLondon Bank (5 Ltd Branches), (9 Branches) HBZ Subsidiary:SouthHabib Africa: Bank Zurich plc UAE:HBZ Branches: Canada:Canada Glasgow, Manchester, LondonHBZ (5Subsidiary: Branches), HBZ Branches:Dubai (5 Branches) HBZHBZ Subsidiary: Subsidiary: Kenya:Leicester,London Birmingham Glasgow,HBZ Bank Manchester, Ltd (9 Branches) DubaiSharjah (5 Branches)(1 Branch) Habib Canadian Bank HBZGlasgow Branches: Canada:Habib Canadian Bank Leicester, Birmingham SharjahAbu(1 Dhabi Branch) (2 Branches) (3 Branches) NairobiSwitzerland: (3 Branches) HBZ Subsidiary: Kenya:Manchester Abu +Dhabi 1 Subsidiary (2 Branches) Company Mississauga Mombasa (1 Branch) Habib Canadian Bank Switzerland:Zurich,Leicester HBZ Head Office + Branch + 1 SubsidiaryHBZ Services Company FZ LLC SouthUnitedScarborough Africa: Kingdom: HBZ Branches: (3 Branches) Zurich,Nairobi HBZ Head (3 Branches) Office + Branch HBZ Services FZ LLC HBZBrampton Subsidiary: UAE:Birmingham Mombasa (1 Branch) HBZLondon Bank (5 Ltd Branches), (9 Branches) HBZ Branches: United Kingdom: Canada: Glasgow, Manchester, Dubai (5 Branches) HBZ Subsidiary: UAE:UAE HBZ Subsidiary: Kenya:Leicester,Kenya Birmingham Sharjah (1 Branch) London (5 Branches), HBZ Branches: : Habib Canadian Bank HBZ Branches: AbuHBZ Dhabi Branches: (2 Branches) Pakistan:Pakistan Glasgow,HBZ Branches: Manchester, Dubai (5 Branches) HBZ Subsidiary: (3 Branches) NairobiSwitzerland: (3 Branches) + Dubai1 Subsidiary Company HBZHBZ Subsidiary: Subsidiary: Leicester,Nairobi Birmingham Sharjah (1 Branch) Habib Metropolitan Bank Ltd (307 Branches) MombasaZurich, HBZ (1 Head Branch) Office + Branch HBZ Services FZ LLC Habib Metropolitan Bank Ltd (307 Branches) AbuSharjah Dhabi (2 Branches) + Habib1 Representative Metropolitan Office Bank Ltd United Kingdom: Mombasa + 1 Representative Office Switzerland: Abu Dhabi HBZ Subsidiary: UAE: + 1 Subsidiary Company with Habib Metropolitan Zurich, HBZ Head Office + Branch HBZ Services FZ LLC Bangladesh: London (5 Branches), HBZ Branches: + 1 Subsidiary Bangladesh:Financial Services HBZ Representative Office: Glasgow, Manchester, SouthDubai Africa: (5 Branches) HBZ Services FZ LLC HBZ Representative Office: Dhaka+ 1 Representative Office Karachi Leicester, Birmingham HBZSharjahHBZ Subsidiary: Subsidiary:(1 Branch) Dhaka HBZAbuHBZ Bank Dhabi Bank Ltd (2Limited (9 Branches) Branches) : Canada:Switzerland: + 1 Subsidiary Company HongHong Kong: Kong Durban HBZ Subsidiary: HBZZurich, Subsidiary: HBZ Head Office + Branch Kenya:HBZ Services FZ LLC HBZ Subsidiary: Johannesburg HabibHBZ Subsidiary:Bank Zurich (Hong Kong) Ltd (5 Branches) Habib Canadian Bank HBZ Branches: Habib Bank Zurich (Hong Kong) Ltd (5 Branches) (3 Branches) NairobiLenasia (3 Branches) +Pakistan: Habib1 Representative Bank Zurich Office (Hong Kong) +HBZ 1 Representative Subsidiary: Office MombasaLaudium (1 Branch) Limited Hong Kong United Kingdom: Habib Metropolitan Bank Ltd (307 Branches) Boksburg + 1 Representative Office Hong Kong HBZ Subsidiary: UAE: + 1 Representative Office London (5 Branches), HBZPietermaritzburg Branches: Glasgow, Manchester, DubaiVeereniging (5 Branches) Bangladesh:Bangladesh HBZ Representative Office: Leicester, Birmingham SharjahIslamic(1 Branch Branch) HBZ Representative Office Dhaka Abu Dhabi (2 Branches) Dhaka Switzerland: 4 + 1 Subsidiary Company Zurich, HBZ Head Office + Branch HBZ Services FZ LLC Hong Kong: HBZ Subsidiary: Habib Bank Zurich (Hong Kong) Ltd (5 Branches) + 1 Representative Office Introducing Wealth Management

Banking for your community Wealth Management is based on trusted relationships and referrals that are carefully cultivated over years, if not genera- tions. HBZ has built an enviable reputation in famously tight-knit South-Asian communities and has an extensive network through its business presences.

Swiss service – uniquely proactive and flexible We are intimately familiar with our clients’ specific requirements, addressing their needs proactively and managing their expectations. We have a strong track record of putting our clients’ needs first and consulting customers according to the best of industry standards.

Competence – Advise, Portfolio Management, Research Our employees are hand-picked and among the finest banking professionals in the industry. They ensure that our clients receive the best possible advice.

5 Our services

Investment Advice • Investment advice in line with HBZ house view • Research recommendations based on your Investment Profile and Portfolio Investment Needs • Asset allocation advise and portfolio health check • Investments expertise on Pakistan

Discretionary Portfolio Management • Global and regional multi-asset class portfolios discretion- ary managed according to Portfolio Risk Profile and your specified investment guidelines

Brokerage Services • Global fixed income (new issues, secondary market) • Global equity markets • Mutual funds and hedge funds • Currencies and precious metals both on spot and forward basis; physical purchase of gold and silver • Dual Currency Deposits • Listed options

• Sharia-compliant products • Structured products

6 Other Banking Services • Fiduciary Deposits / Term Deposits • Lombard Lending • Commercial Loan (property backed) *in specific markets only • Trade Finance: letters of credit, bill discounting and related services

• E-banking • Safe deposit boxes

7 Our investment advice

Investment products and HBZ house view publications ü Regular market updates and commentaries ü Recommendation lists across asset classes ü Portfolio reviews and proposals

8 9 Our focus on Wealth Management Extract from Khaleej Times Special Report November 2017

Tighter rules and regulations govern the global a result of the adoption by the Swiss government of a so- wealth management industry entailing the end of called white money strategy, local wealth managers have traditional bank secrecy and heralding a new era of noted renewed interest in Switzerland as a booking center. transparency. Political stability, sound economic governance but also the quality and breadth of services offered have reasserted themselves as key selection criteria for individuals looking Since Habib Bank AG Zurich’s Silver Jubilee, the world has for a safe home for their wealth. experienced dramatic changes and, with it, the global wealth management industry has undergone a deep and In terms of regulation, tentatively at least, it appears that fundamental transformation. While the nature of the the wave has crested. In the coming years, we are con- business has remained the same – personalized financial vinced that wealth managers will be concerned more with services for wealthy individuals – the way of doing business implementing the new rules than with preparing for yet has been totally reshaped. The first great change has been more rounds of regulatory tightening. If confirmed, this de- the relentless rise of new wealth in emerging economies, velopment would offer better visibility to clients and bank- mainly in Asia, which created markets where there were ers and would allow both of them to return to planning for almost none before. At the same time, technological inno- the long run, after all the essence of wealth management. vation has continued to advance at lightning speed, revo- The same technology, which has enabled this new regime lutionizing in the process every step along the entire value of transparency, has also opened up great new opportuni- chain. In the aftermath of the Great Financial Crisis of 2008- ties for the wealth management industry. Beyond the much 2009 new and substantially tighter rules and regulations hyped fintech and roboadvisors, many, at first sight more governing the industry emerged across the globe, ending mundane IT solutions have already had a powerful impact of traditional bank secrecy and heralding a new era of on daily operations. While electronic trading, web bank- transparency. Another legacy of the crisis have been extre- ing and on-demand as well as around-the-clock access to mely low, in some cases negative interest rates which only portfolios, research and markets have greatly empowered recently have started to normalize, with the consequence clients, the same features have also handed advisors many of profoundly altering key premises in the investment op- more options to engage existing or prospective accounts. portunity set and, very importantly, the perception of risks Creating value from these innovations will, of course, de- for managers and clients alike. mand considerable investments. For many institutions in an industry pressured by rising costs in the context of the new Wealth Management in today's context regulatory and compliance regime this can be a stretch.

As the world has started to emerge from the upheavals Banks and wealth managers need to follow a strategy caused by the meltdown in 2008, the contours of the new which plays to their strength, leading more generally to world for wealth management have started to become two core business models: universal or niche. A universal clearer to us. Geographically two important features stand player needs to have the scope and scale to service clients out. For one, the dynamics favoring emerging markets the world over with offerings tailored to a large number of remain unbroken leading to accelerated growth of assets markets and client profiles. Niche players on the other hand being generated and managed in or close to these loca- will focus on very well-defined target markets and client tions. The confirmation of Hong Kong and Singapore as two segments which will limit the required investment in both key global hubs is the best reflection of this trend. However, IT and compliance resources. Middling business models Switzerland has remained the largest destination for off- meanwhile will continue to struggle since they lack both shore assets. Following years of outflows, some wanted as scale and focus.

10 Consolidation should be the natural outcome. There will be mercial banking and wealth management. Our large global new entrants which can start from a blank slate and they footprint in markets from which many global players have should be welcome. But these newcomers will also quickly withdrawn allows us to cater singularly well to those clients realize that wealth management amounts to much more who actively manage their international business activities than smart algorithms and a slick web presence. but also wish to build up their individual portfolio of liquid global financial assets. Part of the general wealth manage- Wealth Management at Habib Bank AG Zurich ment proposition is to diversify across providers, markets and instruments in order to create robust portfolios for the All the trials and tribulations in the world of banking over long run which can withstand major shocks to local and the past 25 years have, of course, also left a profound im- global markets. print on the way in which we at Habib Bank AG Zurich con- duct the business of wealth management. In particular, the Hence our services – both as advisors and as managers changes in the global regulatory regime has led the bank to of discretionary mandates – aim at allowing our clients to review its portfolio in terms of market coverage. reduce their local exposure which comes natural for entre- preneurs active in their home markets. Guided by the principle “Service with Security” we have continued to focus on Another advantage of our global network of branches and our core clients. Thanks to our home base subsidiaries is that we can always serve our customers as close to their center of activity as desired or required. The Switzerland, the bank is ideally located to combination of our in-depth knowledge of local markets take advantage of the new norm in Wealth and the ability to conduct business across geographies and Management. time-zones is a clear advantage.

Going forward HBZ will look to expanding our wealth ma- At the same time, the core values and mission have re- nagement services to other jurisdictions within our core mained unchanged. Guided by the principle “Service with markets where they are not yet offered. In addition, we Security” we have continued to focus on our core clients will also consider expanding the breadth of the services from the South Asian community. Thanks to our home available. But rather than building up new capacities solely base Switzerland, Habib Bank AG Zurich is ideally located in-house, we will seek privileged relations with external to take advantage of the new normal in wealth manage- providers in areas which are closely linked but not part of ment. Currently the bank is readying itself to embrace a core wealth management offering. In this sense we want the new Swiss regulatory framework which will come into to complement our suite of essential investment advice effect most likely in 2019. The required additions to the and investment services with client access to our network IT landscape will complement the existing platform and for specialists in ancillary fields. Hence we keep the client enable the front to connect even more closely with the relationship at the center of our activities and continue to global clientele. see ourselves as their trusted advisors first and foremost.

In addition to the common wealth management services which the HBZ is offering, one of our specialty and strength remains the ability to bridge client needs between com- Dr. David Wartenweiler, CFA, Chief Investment Officer

Source: Khaleej Times Special Report November 2017

11 12 Our personal commitment Clients and their needs are at the core of all of our Wealth Management activities. Our commitment is thus to our clients, to cater to their individual needs and to serve them to the best of our ability. This commitment extends to all our dealings with clients and seeks to expand the space of mutually benefi- cial interactions. Service with security is more than a tag line, it is a daily reminder that success rests on competence, confidence and trust.

Habib Bank AG Zurich Wealth Management Weinbergstrasse 59 P.O. Box 225 CH-8042 Zurich Tel: +41 44 269 45 00 E-mail: [email protected]

13 For your notes

14 Risk Disclaimer

Habib Bank AG Zurich (“HBZ”) has prepared this document and the information contained herein are provided solely for information and HBZ marketing purposes.

It is not to be regarded as investment research, a sales prospectus, an offer or solicitation of an offer to enter in any investment activity.

Please note that HBZ reserves the right to change the range of services, the products and the prices at any time without notice. All information contained herein, including without limitation benchmarks, asset classes, asset allocation and investment instruments, and opinions indicated are subject to change.

In the event of figures being included, these may refer to past or simulated past performance. Past performance is not a reliable indicator of future results. Some figures may be forecasts only and forecasts are not a reliable indicator of future performance. Any charts and/or performance figures may not be based on complete 12-month periods which may reduce their comparability and significance. If the currency of a financial product or financial service is different from the currency of your home country, the return may increase or decrease as a result of currency fluctuations. Fees may not be included and these will reduce future performance accordingly.

Products and services described in this document are generic in nature and do not consider specific investment objectives, financial situations or your particular needs.

Therefore, you should not regard this document as a substitute for the exercise of your own judgment. All investments carry a certain degree of risk and your attention is hereby drawn to such risk which can be substantial. Please be aware that the markets in certain securities may be illiquid and therefore valuing the investment and identifying the risks may be difficult. Some investments may be subject to sudden and large falls in value and on disposition may pay back less than invested. You should consult your HBZ Relationship Manager on the nature of such investment and carefully consider whether such investment is appropriate for you. Unless otherwise ex- pressly agreed, HBZ does not act as your financial advisor or fiduciary in any transaction.

Tax treatment depends on your specific circumstances and may be subject to change in the future. HBZ does not provide legal or tax advice. Nothing in this document shall be considered as a representation regarding the tax treatment of assets or investment returns, either in general, or with reference to your specific circumstances and needs. HBZ suggests prior to investing, you seek independent legal and tax advice on the implications of the products/services in the respective jurisdiction and the suitability of products and services.

This information material is for distribution only under such circumstances as may be permitted by applicable law. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Neither this document nor any copy thereof may be sent, taken into or distributed in the United States or to any U.S. person, nor may this document be distributed in jurisdictions where its distribution by HBZ would be restricted.

In Switzerland, this document is distributed by HBZ, authorized and regulated by the Swiss Financial Market Supervisory Authority (FINMA) (located at Laupenstrasse 27, 3003 Berne, Switzerland). In the , this document is distributed by Habib Bank AG Zurich, UAE Branches, authorized and regulated by the Central Bank of the United Arab Emirates. In the United Kingdom, this document is distributed by Habib Bank Zurich Plc, authorized by the Prudential Regulation Authority and subject to regulation by the Financial Conduct Authority and the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from HBZ on request.

Without prior permission of HBZ, reproduction of this document in whole or in part is prohibited. HBZ does not accept any liability whatsoever for the actions of third parties in this respect. HBZ makes no representation or warranty relating to any information herein which is derived from independent sources. HBZ does not accept any liability for any loss or damage arising out of the use of all or any part of this document.

Habib Bank AG Zurich’s registered head office is at Weinbergstrasse 59, 8006 Zurich, Switzerland.

In case of any questions, do not hesitate to contact your Relationship Manager.

HBZ 01.2018

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