Annual Report

2020ANNUAL REPORT www.quintet.com

www.quintet.com

Herrmann Debrouxlaan 46 2 Moorgate Pacellistrasse 16 Herengracht 537 B-1160 Brussels London EC2R 6AG D-80333 Munich 1017 BV Amsterdam Belgium United Kingdom Germany The Netherlands www.puilaetco.be www.brownshipley.com www.merckﬁnck.de www.insingergilissen.nl www.pldw.be www.kbl.lu www.insingergilissen.nl

43, boulevard Royal 163, rue du Kiem Bahnhofstrasse 13 Sankt Annae Plads 13, 3 tv. L-2955 Luxembourg L-8030 Strassen CH-8001 Zurich DK-1250 Copenhagen K Luxembourg Luxembourg Switzerland Denmark www.quintet.lu www.puilaetco.lu www.quintet.com/en-ch www.quintet.com/dk

5 MESSAGE FROM THE CHAIRMAN

6 WELCOME FROM THE GROUP CEO

10 DIRECTORS & MANAGEMENT 3

14 2020 IN REVIEW

16 KEY CONSOLIDATED FIGURES

19 MANAGEMENT REPORT

20 CONSOLIDATED MANAGEMENT REPORT 2020 Annual Report2020 Annual 24 ORGANIZATIONAL ACTIVITIES

29 2020 IN REVIEW: AFFILIATES & BRANCHES

34 NON-CONSOLIDATED MANAGEMENT REPORT

35 APPENDICES TO CONSOLIDATED AND NON-CONSOLIDATED MANAGEMENT REPORT

41 RESULT ALLOCATION PROPOSAL

42 COMPOSITION OF THE BOARD OF DIRECTORS

43 DECLARATION ON THE CONFORMITY OF THE 2020 ACCOUNTS

44 NON-FINANCIAL & DIVERSITY INFORMATION

52 CONTACT INFORMATION BUILDING A SUSTAINABLE FUTURE together

We understand that the greatest threat to our planet is waiting for someone else to save it. That’s why at Quintet we’re on a mission to do more. We believe in creating a richer life for all of our clients; not only by investing in sustainability, but living sustainably too.

Last year, we successfully delivered on our pledge to eliminate all single-use plastics from all of our premises. Now, we’re looking at other ways that we can play our part in driving sustainability.

That’s why we have partnered with Capture, the carbon footprint tracking app. In 2021 we commit to living our sustainable values through our own workforce, by monitoring, reducing and removing CO2 emissions from our lifestyle.

World-class investments for you, supporting a sustainable future for all. MESSAGE FROM THE CHAIRMAN

2020 will be a year remembered for many things. The balance of all our memories is heavily tipped towards the sad, the difficult and a sense of despair. All our lives have changed, and in many cases will have changed permanently. But, despite everything that has been thrown at humankind over 5 this period, we have learned to adapt and change, and in so many respects we have become a more caring and sharing human race.

Businesses have been disrupted, and in too many more significant milestones were achieved, while cases damaged beyond repair. But again, new at the same time continuing to support clients and businesses have emerged or existing businesses prospective clients. We were quick to adapt to the have grown beyond recognition. We adapt and new world, and quick to reprioritize. 2020 Annual Report2020 Annual change, and with the huge technological progress of the past 20 years, we are able to move swiftly To all Quintet colleagues, I send my thanks and and flexibly. gratitude that, in one of the most significant upheavals for over 100 years, our business today is stronger The financial services industry has also suffered, and better recognized for the quality of service and but to a lesser extent than perhaps feared this offering than it was at the start of the pandemic. time last year. Balance sheets and capital ratios That is not something I thought we would be were strong as we entered a deeply uncertain and able to state in February 2020 when the world volatile period, and of course central banks and was beginning to realize that a pandemic (widely governments also intervened to inject unimagined predicted for many decades) was likely to disrupt liquidity and funding into the most sustainable and damage the very foundations of all social, aspects of the economy. Good businesses attracted commercial and scientific achievements. support, while others did not. The banking industry has yet to see the full extent of the fallout from We will build back better, we will innovate and, those businesses that will not recover, and will above all, we will adapt and change to a new need to manage inflationary pressures caused order, a new world, a different future but one in by these huge injections of funding as we move which we will all thrive once again. forward.

My abiding thoughts of Quintet during 2020 are of a business continuing with its plan, despite the backdrop of COVID-19. The completion of the Quintet Europe mergers, the hiring of new RORY TAPNER talent, the rebranding project and many, many Chairman of the Board of Directors WELCOME FROM THE GROUP CEO

entity organizational chart. With this transformation comes much increased cohesiveness in the way we work together. We have become a Group, not a group of loosely affiliated companies. And we will derive significant synergies from that.

We met our financial targets. They do reflect the investments we are making in our future. We 6 delivered significant AuM growth, mainly from net new money entrusted to us by our clients. We exceeded our plans in terms of net new loan production, and trading and execution activity was high, especially in Q1 and Q2. Many thanks for your interest in Quintet. We also finalized our acquisition of Bank am For Quintet, the year 2020 was, as for most Bellevue in Switzerland. This is the first step towards

2020 Annual Report2020 Annual individuals and organizations, a year of pandemic, opening up a booking center in Switzerland from trauma, challenge, grief and of working in the most where we service clients in markets with strong unusual, demanding circumstances one could ever growth in wealth: Asia, Latin America and the imagine. In addition, during 2020 we lost our CEO, Middle East. And of course the Swiss market itself. Jürg Zeltner, much too early, to a short illness. We opened a branch in Copenhagen and have already But the year 2020 was for Quintet also a year seen significant inflows of assets from the Nordic of accomplishment. When we think of what we region, supported by our colleagues in Copenhagen accomplished, we should never forget the backdrop and our Nordic team based in Luxembourg. against which it all happened.

We are transforming the former KBL into Quintet. We are still in the early phase of a multi-year project WE ARE to transform ourselves into a healthy, growing and profitable private banking franchise. Our results TRANSFORMING reflect the significant investment being made during OURSELVES INTO A 2020 to sustain this transformation. HEALTHY, GROWING Among the highlights of 2020, I would mention the AND PROFITABLE creation of a single European banking entity. We made this undertaking the top priority among all PRIVATE BANKING the things we wanted to accomplish in 2020. It was FRANCHISE done on time and on budget. The transformation to a single EU entity is about a lot more than the legal And we have continued to strengthen the We have also taken important decisions about our management bench, also by adding a significant approach towards sustainable investment. As I number of new Client Advisors. am writing, we are planning the launch of a range of sustainable discretionary mandate and fund We carried out several transactions that solutions. We believe that, long term, a sustainable strengthened our balance sheet as we enter deeper investment solution should be the default choice we into the investment phase of our transformation. offer to our clients. That includes the successful launch of a public issue of Additional Tier-1 securities. The demand for this It is abundantly clear that it is possible to invest 7 offering allowed us to increase the transaction size with impact without sacrificing returns. It’s logical. to €125 million. It has continued to trade well in the Companies better prepared for the impact on their secondary market. business of climate change – building resiliency and managing risk more carefully – are likely to offer an Finally, we made significant progress towards our improved risk/reward ratio to their investors. And objective of becoming a recognized investment that is how markets are meant to work. We believe house. We created a single House View, whereby our role as fiduciary is aligned perfectly with our our CIO on behalf of the Group articulates our view view that a well-managed sustainable portfolio Report2020 Annual as to how our clients should be invested – always should be the default choice for our clients. in a proper portfolio context and in line with the risk appetite of our clients. Our Counterpoint Our purpose remains to be the most trusted publications speak to our views regularly and fiduciary of family wealth. This is a very Counterpoint Solutions offer clients specific ideas straightforward statement of promise. It speaks to about how they can manage their wealth. The who we want to be, but delivering is key. We have improved performance of client portfolios reflects developed strong management measures that allow our work in this area. us to feel confident that we behave, towards clients and each other, in a way that demonstrates that, at Our strong belief is that if we continue to service Quintet, our clients and their interests are what we our clients well, solving for their needs, within obsess about. an efficient operational structure and with strong management of our resources, the outcome will be We have put in place a new internal evaluation the bank we all want to create: one that is healthy framework where our leadership is measured and vibrant, growing and profitable. substantially in terms of the partnership behavior that underpins our promise. Equally, we are Sincerely, 8 directing scarce compensation resources to those colleagues who behave according to our vision of how a private client business should be managed: collaboratively and always with the best interest of the client foremost in mind. JAKOB STOTT Group CEO and member of the Board of Directors 2020 Annual Report2020 Annual We are the most trusted fiduciary of family wealth and earn trust by an unwavering commitment to doing the right thing

Nothing is more important than our fiduciary responsibility to do what is right for our clients and their families, who entrust us with their wealth. That is why we are in business and what drives us each day. By listening carefully, thinking ahead and delivering performance, we earn their trust – and a seat at their kitchen table, where life’s most important decisions are made. DIRECTORS & MANAGEMENT

BOARD OF DIRECTORS

RORY TAPNER ANNE RUTH HERKES Chairman Director

GEORGE NASRA ANTOINE MARCOLIN Deputy Chairman Director

10 1ALLA BASHENKO MARCO MAZZUCCHELLI Director Director

2WILLEMIEN DEE 2MARIE-CHRISTINE SCHLAG Employee Representative Employee Representative 2020 Annual Report2020 Annual

2FRANK ERTEL JAKOB STOTT Employee Representative Group CEO

YVES FRANCIS 2JAN TOMASEK Director Employee Representative

1As of January 19, 2021 - 2As of January 1, 2021, subject to regulatory approval AUTHORIZED MANAGEMENT COMMITTEE

JAKOB STOTT MARIA LEISTNER Group CEO Group Chief Legal Officer

3BRYAN CRAWFORD SIEGFRIED MARISSENS Group Co-Head of Secretary General Global Products & Solutions

11 NICHOLAS HARVEY 5THOMAS RODERMANN Group CFO CEO, Quintet Europe

4 ELI LEENAARS 6PHILIP TREMBLE Group COO Group Chief Risk Officer 2020 Annual Report2020 Annual

AFFILIATE & BRANCH MANAGEMENT

EMMANUEL FIEVET LUDIVINE PILATE Quintet Switzerland Puilaetco

OLIVIER DE JAMBLINNE DE MEUX 7MICHAEL SAVENAY Puilaetco Luxembourg Quintet Luxembourg

7REINHARD KRAFFT PETER SIERADZKI Merck Finck InsingerGilissen

ALAN MATHEWSON HENRIK WYRWIK Brown Shipley Quintet Danmark

3As of January 1, 2021, subject to regulatory approval - 4As of June 1, 2021 - 5As of December 15, 2020 - 6As of March 15, 2021 - 7As of March 1, 2021 , subject to regulatory approval GROUP EXECUTIVE COMMITTEE

DONNA BURNS SIEGFRIED MARISSENS Group Head of Human Resources Secretary General

GABRIEL CASTELLO ALAN MATHEWSON Group Head of Latin America CEO, Brown Shipley

BRYAN CRAWFORD STEPHAN MATTI Group Co-Head of Global Products & Solutions Group Head of Asset Servicing & FIM 12 AMAURY DE LAET THOMAS RODERMANN Head of Belgian Market CEO, Quintet Europe

EMMANUEL FIEVET PETER SIERADZKI CEO, Qunitet Switzerland CEO, InsingerGilissen

NICHOLAS HARVEY JAKOB STOTT Group Chief Financial Officer Group CEO

2020 Annual Report2020 Annual CLEMENS LANSING BILL STREET Group Co-Head of Global Products & Solutions Group Chief Investment Officer

ELI LEENAARS ANTHONY SWINGS Group Chief Operating Officer Head of the Office of the Group CEO

MARIA LEISTNER PHILIP TREMBLE Group Chief Legal Officer Group Chief Risk Officer

ERIC MANSUY Chief Information Technology & Operations Officer

Independent auditors responsible for external audit: Ernst & Young S.A. OUR PURPOSE

To be the most trusted fiduciary of family wealth.

We earn your trust by an unwavering commitment to doing the right thing.

We grow and protect your wealth as we would our own. Our worth is measured by the impact we deliver.

We add insight and reduce complexity. We add security and reduce worry. 14 2020 Annual Report Executives in Wealth Management Wealth in Executives Influential Most 50 the of PAM the on list named is Shipley, CEO, Brown Mathewson, Alan race in Luxembourg campaign on the theme “A Life” theme Richer the on campaign Quintet’s an launches integrated marketing service client uninterrupted series ofto actions ensure and continuity business global economy. Quintet rapidly a implements Coronavirus pandemic begins to disrupt the successor Zeltner’s as Directors of Board the by nominated is Stott away. Jakob passes Directors, of Board the of amember and CEO Group firm’s the Zeltner, Jürg journey her shares Loves, Jo Jo Malone CBE, Founder & Creative Director, outlook. Well-known entrepreneur investment Quintet’s “Counterpoint,” of launch the for event London exclusive an hosts Shipley Brown cancer and their families fighting children helps which Luxembourg, in Kanner the FoundatiounQuintet Kriibskrank supports the sponsors Quintet classes key asset and markets financial economy, global the of analysis its “Counterpoint,” unveils Quintet Quintet Private Bank as rebrands Bankers Private European KBL REVIEW IN 2020 MARCH FEBRUARY JANUARY Relais pour la Vie la pour Relais

charity

unlock additional regional opportunities. and scale further add to strategy growth overall Shipley’s Brown of part forms This Limited. & Co Brown NW of integration the finalizes Shipley Brown NHS workers during the COVID-19 crisis donation. on focuses feeding The charity front-line a£10,000 with NHS Critical supports Shipley Brown Management Committee, Quintet Private Bank Authorized the of amember as role his to addition AG in Privatbankiers Finck Merck at Board Executive the of Chairman named is Rodermann Thomas Planning Wealth on podcast first launches Shipley Brown todespair repair” “From outlook: investment midyear unveils Quintet appointed Chairman of Quintet Switzerland is Life, Swiss of CEO Group and Zurich Bank Co & Rothschild of Chairman former Pfister, Bruno of Quintet Chairman appointed is Board, Executive Group UBS Tapner,Rory former CEO and member of of Coutts future the in investments highlighting Quintet announces 2019 financial results, CEO Emmanuel Fievet by led Committee, Executive experienced highly with team leadership unveils Switzerland Quintet Bellevue am Bank of acquisition the of closing the Quintet opens for in business Switzerland following MAY APRIL JUNE Merck Finck celebrates the 30 the celebrates Finck Merck Quintet Switzerland at International, Asia Head, Market as Brogle Zhang Jing appointing by Asia on sights its sets Quintet Denmark in business for opens Quintet and Digital the Day NextGen Sustainability” of “Future webinar the in part takes Finck Merck in Nottingham office friendly eco- purpose-built, anew to relocates Shipley Brown strategy growth subsidiaries execution to support of long-term Union European of majority merge to intention Quintet introduces Quintet Europe and announces Switzerland and Kingdom United the Luxembourg, hubs: three of out operates which team, leadership Office Investment Family Quintet’s unveils Higson Philip Switzerland, at Quintet Switzerland Domestic Head, Market named is Piero Del André foundation fund Germany’sMerck Finck Stiftungsfonds, first OCTOBER SEPTEMBER AUGUST JULY th anniversary of anniversary

from the Socially Responsible Investment Forum Investment Responsible Socially the from Merck Finck is awarded the quality standard FNG of NGOs, entrepreneurs and innovators Investment, with a panel including leaders journalists, Sustainable of Head Group Purcell, James by hosted reducing global emissions. The is carbon session on debate roundtable Life” a“Richer holds Quintet GoudenIEX Stier Awards the at Netherlands” the in Bank Private “Best as row a in year third the for nominated is InsingerGilissen banking Banker by PWM/The private in branding best the for recognized is Quintet Brown Shipley achieves that target that achieves Shipley Brown 25% female representation in senior management, minimum to acommitment 2018, with January in Charter Finance in Women the of signing Following staff office front- España Quintet of majority the hire to intends turn in which Bank, Singular to accounts their transfer to opportunity the offered be will clients its and operations its down wind will España Quintet clients to be by served Singular Bank. Consequently, for QuintetBank, extending España the opportunity Quintet signs a strategic agreement with Singular authorities following approval by the relevant regulatory launched, is unit business Europe Quintet The NOVEMBER DECEMBER 15 2020 Annual Report KEY CONSOLIDATED FIGURES

(Consolidated figures as of December 31) 2017 2018 2019 2020

RESULTS (in € million)

Operating income 4 87.9 444.8 443.1 513.0

Operating expenses -446.1 -433.6 -470.5 -534.0

Impairments 1.0 -1.7 -13.3 -1.3

Share in results of associated companies 0.1 -0.1 -1.5 -1.2

Gains/(losses) on non-current assets held-for-sale, - -2.5(3) - - not qualifying as discontinued operations

16 Pre-tax profit (from continuing operations) 42.9 7.0 -42.2 -17.9 Income taxes -4.2 -6.2 -1.5 -2.4

Discontinued operations, net of tax -3.6(1) - - -

Net consolidated profit, group share 35.2 0.8 -43.7 -20.3

FINANCIAL RATIOS (in %) 2020 Annual Report2020 Annual Common equity tier one ratio 17.2% 17.2% 18.0% 19.6%

Tier one ratio 17.2% 17.2% 18.0% 23.6%

Solvency ratio 17.2% 17.2% 18.0% 23.6%

Regulatory capital/balance sheet total 5.3% 4.6% 4.7% 5.5%

Loan-to-deposit ratio 29.3% 24.7% 32.8% 43.4%

ROAE 3.2% 0.1% -4.1% -1.8%

ROAA 0.3% 0.0% -0.3% -0.2%

ROA 0.3% 0.0% -0.4% -0.2%

Cost/income ratio 91.4% 97.5% 106.2% 104.1% (Consolidated figures as of December 31) 2017 2018 2019 2020

BALANCE SHEET TOTAL (in € billion) 11.5 13.0 12.2 13.3

ASSETS

Loans and advances to credit institutions (incl. on demand) 0.7 1.0 1.5 1.2

Loans and advances to others than credit institutions 2.5 2.6 3.2 4.3

Equity and debt instruments 4.3 4.4 4.7 4.2

LIABILITIES

Deposits from credit institutions 0.6 0.7 0.6 0.7 17

Deposits from others than credit institutions 8.6 10.5 9.8 10.5 of which, subordinated debt 0.0 0.0 0.0 -

Total equity 1.1 1.1 1.1 1.2

PRIVATE BANKING ASSETS UNDER MANAGEMENT 47.6 45.0 52.7 57.7 (in € billion) 2020 Annual Report2020 Annual Volume impact +0.7% -0.9%(2) +1.9% +5.9%

Price impact +4.3% -6.8%(2) +15.8% +2.3%

ASSETS UNDER CUSTODY (in € billion) 14.9 14.3 17.4 17.3

OTHER CLIENT ASSETS 18.9 13.3 11.4 10.0 (in € billion)

(1) IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations” application on former KBL Monaco, KBL Richelieu, S.C.I. KBL Immo I and S.C.I. KBL Immo III (see note 1 and 2d of the 2017 Financial Statements) (2) Volume/price impact excluding acquisitions and divestments (3) Please refer to note 1 of the 2018 Financial Statements The complete financial statements of Quintet Luxembourg and group are available on the website. The Pillar III disclosures report will be published in summer 2021 on the website of Quintet: www.quintet.com We grow and protect our clients’ wealth as we woud our own. Our worth is measured by the impact we deliver

We do more than manage wealth and make investment calls; we partner with people to help them live the life they want for themselves and their families. We recognize that it is a privilege – and a great responsibility – to protect and grow our clients’ assets by investing on their behalf. That is why we safeguard their wealth as we would our own, always putting their well-being first. MANAGEMENT REPORT CONSOLIDATED MANAGEMENT REPORT

GENERAL COMMENTS ON THE RESULTS AND 8% (€317 million in 2020 versus €293 million in THE BALANCE SHEET 2019).

Since 2019, Quintet Private Bank has been In August 2020, for the rationalization and making very significant investments in the future – streamlining of building management, Quintet including in great people, product development, Group sold KBL Immo S.A. to Zenith Corp S.A., a sales marketing and geographic expansion to real estate company, the buildings it occupies in support the firm’s long-term growth, in line with Luxembourg and concluded a leaseback contract. its ambitious strategy – and the group’s 2019 and The transaction generated a capital gain of €62.7 2020 financial results reflect that. million in the “other income” category.

At the end of the 2020, Quintet’s consolidated balance Operating expenses, marked by ongoing strategic sheet totaled €13.3 billion. This increase compared to projects, increased by almost 13% to €534 million 2019 (€12.2 billion) is primarily due to higher interbank 20 (€470 million in 2019), primarily due to significant and customer deposits at almost all group entities. recruitment efforts, particularily of client advisors, This mainly affected the portion of excess liquidity as well as temporary support from professional deposited on the asset side at central banks. The services firms to assist in the tranformation of the structure of the firm’s financial position remains healthy Bank. and largely comparable to the previous year.

The group did not perform any buy back of its own The solvency is solid and, at 23.6% (2019: 18%), shares in 2020. remains well above regulatory requirements set 2020 Annual Report2020 Annual by the European Central Bank. While the RWA For detailed figures, please refer to the are stable versus the previous year, the increase consolidated financial statements. is the result of a capital injection of €50 million in the first quarter 2020 and the placement of €125 https://www.quintet.com/en-GL/Pages/Annual- million in additional tier-1 (AT1) notes in October reports 2020. The proceeds from the notes are used to support the financing of Quintet’s long-term RESEARCH & DEVELOPMENT growth while further reinforcing the bank’s strong regulatory capital position. At Quintet Private Bank, we invest in innovation so we can serve our clients better. While that effort The group has developed a clear growth strategy is broad-based, our firm focused on two specific with the launch of a range of commercial and research & development priorities in 2020: digital organizational projects that account for most of solutions and sustainable investment. the last two years of losses: €20.3 million in 2020 and €43.7 million in 2019. Such investments in DIGITAL SOLUTIONS the firm’s future will support long-term growth While COVID-19 has dramatically accelerated in areas such as net new money generation and existing trends, the importance of digitalization assets under management, as well as significantly to Quintet will remain paramount even when the improved bottom-line performance over time. pandemic is behind us. To that end, we foster a digital culture – which goes far beyond ensuring Despite a very unstable year due to the pandemic, that systems and solutions are up to date, or Quintet has succeeded to preserve its net interest equipping our workforce with the appropriate margin (€80 million in 2020 versus €82 million in tools. At Quintet, living a digital culture means 2019) and to increase its commissions by almost that we are customer-centric, agile, innovative and data-driven. We embrace transparency and investment and operational value chain. From collaboration, while promoting continuous learning. macro assumptions, to strategic asset allocation, and increasingly through instrument selection, our In alignment with our group-wide digital roadmap, firm has been working to integrate sustainability in we focus on promoting existing and upcoming a credible and client-friendly fashion. multi-channel services that enhance customer experience – including by freeing time for Quintet Client interest in this area has been supported by client advisors to concentrate on the kitchen-table strong investment performance. For example, in conversations that matter most. We also leveraging 2020, the popular MSCI SRI indices outperformed digital data to generate value for our business, their conventional counterparts – up 4.2% including by analyzing customer expectations and compared to MSCI USA and up 1.0% vs. MSCI behavior, ensuring relevance for our clients. Eurozone. Accordingly, Quintet is introducing a flagship sustainable discretionary mandate, based Based on an open-architecture “Innovation Lab” on an open-architecture approach and making approach, we continue to develop and introduce full use of the sustainable investing toolkit – from a range of digital tools that enhance client leaders, to improvers, to themes, and a range of experience and improve process efficiency. These dedicated assets. In parallel, we are working on activities are led by Quintet’s Digital Competence the launch of the world’s first multi-asset, climate- Center; each digital project also includes relevant neutral investment fund. representatives from the front office and IT, who jointly think, design, develop and implement Reflecting our belief that sustainable investment common solutions to the shared technological solutions should be the default choice we offer 21 challenges faced by our clients and our firm. to our clients, James Purcell was appointed Group Head of Sustainable Investment in early In 2020 at our Belgian branch, for example, 2020, with a mandate to drive our group-wide Puilaetco saw a nearly 15% annual increase in the responsible investment strategy, incorporating number of clients accessing their portfolio digitally, environmental, social and governance factors in through the MyPuilaetco app, and 50% growth in all our investment practices and in line with our unique customer visits to the app. Overall, nearly commitment as a signatory to the United Nations- 1,400 additional clients now have access to the

supported Principles for Responsible Investment Report2020 Annual app, while 94% of new accounts are now opened and a member of Climate Action 100+. More by client advisors digitally. recently, a Sustainability Strategist was appointed to develop a Quintet-wide approach to corporate To cite another example, in the Netherlands, a social responsibility. Importantly, that function is digital Innovation Lab was launched in March embedded in Quintet’s Chief Investment Office. 2019 – with front-office representatives, in- house digital specialists and app developers STRATEGIC OUTLOOK – to introduce a mobile payment solution for InsingerGilissen clients. Working in close Quintet Private Bank is focused on growth. collaboration, they reviewed a range of potential mobile payment functionalities to feature on the While today in the early phase of a multi-year Mijn InsingerGilissen app, then tested the same project to transform our firm into a healthy, with select clients. Six months after the project was growing and profitable private banking franchise, launched, leveraging a truly agile development our ambition over the coming years is to cycle, a new mobile payment tool was introduced. significantly grow assets under management – Just over a year since introducing mobile payment including the right mix of domestic and offshore options, nearly half of all Dutch client payments assets – while also increasing group net profit (from a payment account) are now made online, by multiples. As a consequence of continually including from a mobile device. reinvesting in the future, including as a market consolidator, we intend to likewise significantly SUSTAINABLE INVESTMENT increase Quintet’s current value. In 2020, Quintet committed to making sustainable investing its default approach and, to that end, Underpinned by a clear purpose – to be the most initiated a transformation program across the trusted fiduciary of family wealth – and a shared obsession with client interests and customer commercial development; geographic expansion; experience, our long-term growth strategy is and the ongoing recruitment of great people defined by the response to two overarching across the bank, especially client advisors. questions: Where should we compete? And how should we compete? Quintet’s 2020 results reflect the significant investment being made to sustain this transformation. Quintet will continue to operate in Europe, one of It is important to note that these investments are the world’s largest wealth management markets, fully funded by the significant capital that has been with several million households with over €1 injected by Quintet’s shareholders, including over million in net private wealth. We will continue to €300 million of fresh capital since the firm was build upon our strengths and reinforce growth acquired by Precision Capital in 2012. in our domestic markets. In that regard, the December 2020 merger of our firm’s European As well, in October 2020, Quintet successfully Union-based subsidiaries – and the introduction placed €125 million in additional tier-1 notes, of the “Quintet Europe” business unit – was a listed on the Luxembourg Stock Exchange (Euro milestone achievement. MTF). The positive response to this inaugural issuance underscores the high level of institutional The introduction of Quintet Europe will allow us to investor confidence in Quintet’s fundamentals and spend more time focused on the individuals and strategic growth plans. By diversifying our funding families we serve, while reducing organizational sources, we are even better positioned to realize complexity and increasing operational efficiency. our ambitious goals. 22 Our clients will benefit from shorter lines of communication, more rapid decision-making and Meanwhile, Quintet’s liquidity and capital positions faster service. They will also benefit from a one- remain very strong, and well above regulatory bank approach, delivered by a single larger bank thresholds, reflecting the expectation of Quintet’s rather than several smaller subsidiaries. Board and shareholders of best-in-class balance- sheet management. At the same time, we will increase our exposure to growth markets, both outside Europe and in new TRAINING & DEVELOPMENT European markets, by expanding our international 2020 Annual Report2020 Annual Training and development are central to further cross-border business and putting in place teams enhancing our client services and improving overall focused on serving clients in those parts of the world client experience. That’s why we invest in the skills and where wealth is being created. That includes, for development of our people and recruit experienced example, Asia, Latin America and the Middle East. professional staff. Indeed, all our people – from the The entry into new markets will necessarily reflect mailroom to the boardroom – are contributing to our appropriate governance and robust risk management. ability to better serve each individual client.

In terms of how to compete, Quintet is focused on Across the group’s footprint, Quintet promotes four areas: our product, brand, intellectual property internal mobility, creating opportunities for and the people behind it. In 2020, we strengthened relevant staff to transfer their knowledge and skills and aligned a comprehensive products and services within the organization. strategy, launched a new parent brand and a coherent group-wide brand strategy, introduced Likewise, we strongly encourage cross-border far more robust intellectual property, provided by cooperation, organizing events that bring our investment specialists, and continue to invest in together staff from multiple markets, including training, development and talent acquisition. virtually. Such meetings facilitate the sharing of

local experience and insight – and the creation of Quintet continues to pursue these strategic plans shared strategies to better serve all our clients, no – which, despite the pandemic, remain unchanged, matter where they are based. on track and endorsed by the Board and Quintet’s shareholders. That includes ongoing internal SOCIAL COMMITMENT transformation, so we operate with less complexity and far greater efficiency; the further enhancement With some 2,000 employees across 50 European of our products and services offering; robust cities, our group has a unique opportunity to make a difference in local communities. Today, we non-profit cultural organizations. In addition continue to reinforce our commitment to corporate to direct financial support, our bank strongly social responsibility, supporting various worthy encourages staff to participate in initiatives that causes throughout Europe. benefit local communities.

At Quintet, we believe in doing well for our GROUP EMPLOYEES clients and doing good in our communities. By contributing resources, time and capital to As of December 31, 2020, Quintet employed laudable causes and important ideas, we serve 2,048 staff, compared to 1,976 at the end of 2019. as an agent of positive social change. Quintet Of those 2,048 staff, approximately 67% work in provides ongoing funding for a broad range of subsidiaries outside Luxembourg.

23 2020 Annual Report2020 Annual ORGANIZATIONAL ACTIVITIES

WEALTH MANAGEMENT

Quintet Private Bank’s core activity is wealth default choice for our clients. This core belief is management. aligned with our fiduciary responsibilities.

As a firm that is obsessed with meeting client Quintet is a deeply personal private bank, needs and delivering excellent customer combining a local presence in 50 European cities experience, we strive to be the most trusted with global insight, providing efficient access to fiduciary of family wealth. We recognize that such liquidity to fund our clients’ future, ideas that will trust must be earned, each day. make their wealth grow and experts who will guide them. In extending such services, we focus on Quintet is a private bank for people who see relationships, not transactions – building bridges the world differently: We partner with individuals between business, family and wealth needs, and families to help them invest in the life extending both investment expertise and long- 24 they want, providing insight and introducing term financial planning. opportunities – always putting their well-being first. As an organization, we cut through complexity At Quintet, we serve as independent advisors who so we can devote our time to our clients and the take an open-architecture approach, measuring pursuit of their best interests. our worth by the impact we deliver – offering a transparent pricing and service structure. We Through our single House View, we share our manage the wealth of our clients in return for a perspective as to how our clients should be competitive fee, recognizing that we stand or fall invested – in a proper portfolio context and in based on the quality of advice we offer. 2020 Annual Report2020 Annual line with their individual risk appetite – focusing on delivering superior risk-adjusted long-term Most importantly, at Quintet, we put our clients’ performance. In doing so, we believe that a interests first. Always. well-managed sustainable portfolio should be the ASSET SERVICING & FINANCIAL INTERMEDIARIES

Quintet’s Asset Servicing & Financial support for existing institutional and professional Intermediaries (FIM) business – which provides clients, assisted by a back-office known for its solutions to FIMs, multi-family offices, investment experience and competence. Their ability to meet funds, corporates and private investment client needs completes the wealth management companies – is one of Quintet’s jewels. Given value chain by positioning Quintet as a true “one- Luxembourg’s special strength in this area, most of stop shop.” Today, those client advisors serve Quintet’s asset servicing business has historically more than 350 institutional and professional clients been concentrated in the Grand Duchy. representing more than 8,000 structures and portfolios. It has more than €25 billion in assets This business line includes all the marketing under custody. and support functions focused on providing full, high-quality custodian and execution services to The Client Support & Monitoring team, responsible a sophisticated client base seeking customized in particular for monitoring investment restrictions solutions. Known at Quintet until the end of 2020 on the UCI for which Quintet is the custodian bank as “Global Institutional Solutions,” it includes all and for supervising the creation and execution activities and services for non-private clients. It of operational workflows, also responds to any 25 consists of several desks and entities that operate operational questions from the client in close together in a highly competitive environment, collaboration with the operational production lines. marked by ever more stringent regulatory constraints, such as increased supervision of the In that regard, it is worth noting that Luxembourg sub-custodian networks for custodian banks and is the world’s second-largest investment fund enhanced monitoring of the activities delegated to domicile (after the United States), both in assets management companies. The previous 12-month and vehicles, with a total of 3,627 structures period was characterized by a fundamental and 14,571 sub-funds. As of November 30, 2020, review of our risk acceptance policy focusing on the total net assets of collective investment Report2020 Annual risk awareness and mitigation as well as client undertakings and specialized investment funds in selectivity. Luxembourg amounted to €4.88 billion compared to €4.67 billion at the end of November 2019, an Throughout 2020, Quintet’s Asset Servicing & FIM increase of 4.54%. The increase in the financial business, thanks to its client-focused structure, center’s net assets was €212 billion. worked hard to provide a comprehensive offering of impeccable and tailor-made services to meet In Luxembourg, the number of UCI structures the needs of small and medium-sized management and sub-funds fell in 2020, by 152 and 256 companies, private banks, insurance and life- respectively. Like in 2019, Specialized Investment insurance companies, as well as external asset Funds (SIF) attracted fewer new fund promoters to managers and family offices, whether they based in Luxembourg (-2.1%), while their net assets rose by Luxembourg, Europe or elsewhere in the world. +3.2% compared to November 2019.

Within Asset Servicing & FIM, the Business To this can be added the Reserved Alternative Development team is the first point of contact for Investment Funds (RAIF). Launched in 2016, this our future institutional and professional clients, with type of alternative investment vehicle has enriched its three desks of multilingual, highly experienced the Luxembourg landscape. Since launch, every specialists who have in-depth knowledge of client investment fund promoter has had the choice needs, whether the client is a fund promoter, insurer, between an investment vehicle directly regulated external asset manager or family office. by the CSSF (SIF, SICAR, Part II funds) or the RAIF, which is regulated and supervised indirectly. Since A team of client advisors is responsible for day- then, the number of structures has never stopped to-day relationship management and operational increasing. At the end of November 2019, there was a total of 885 structures. One year later, this EUROPEAN FUND ADMINISTRATION S.A. figure had almost doubled to 1,236 structures. Since 1998, Kredietrust Luxembourg (KTL), the 100%-owned asset management subsidiary of Quintet’s Asset Servicing & FIM offering is not Quintet, has subcontracted its fund accounting, limited to Luxembourg or the fund industry. It also registrar and transfer agent functions to a specialist includes all the private banking support services, company called European Fund Administration and provides external asset managers and family (EFA), of which Quintet is one of the founding offices with cutting-edge tools such as customized shareholders. reporting available on a specially developed IT platform. In addition, we provide small and At the end of 2020, EFA was administering more medium-sized banks with access to financial than 2,461 funds with total net assets of €140 markets, financial intermediation and global billion for 179 clients from 19 countries. custody services, with recognized excellence in third-party funds and precious metals. For more than 20 years, EFA has been a leader in fund administration. Its mission is to provide To succeed in a rapidly changing legal a wide range of tailor-made services to a 26 environment to which fund promoters must adapt sophisticated and demanding clientele. These constantly, our Legal Support team provides services include accounting and valuation of high-quality assistance in setting up investment portfolios, acting as transfer agent and registrar, structures and updating legal documentation as well as providing middle-office tasks such as (full and simplified prospectus, KIID, articles of trade management or tax and regulatory reporting association, etc.) throughout the entire life cycle solutions for UCITS, UCI and alternative investment of the fund. The team provides the client with funds. Since 2007, EFA also developed a Private its extensive experience and knowledge of the Assets business line and provides its high-quality 2020 Annual Report2020 Annual fund industry and helps with the legal analysis of expertise to real estate and venture capital/private any new product. The Legal Support team has a equity-type funds. comprehensive understanding of the legal needs and constraints facing external asset managers, This dedicated activity is specialized in all types family offices and banks. of private assets, funds and other structures, regulated or non-regulated, in Luxembourg and in EVOLUTION OF ASSETS ADMINISTERED BY KTL any other jurisdiction. As of December 31, 2020, the net assets of 58 UCI structures totaling 183 sub-funds were worth €9.76 Please note that the above figures are not audited billion, slightly up on the end of 2019. as they pertain to EFA CHIEF INVESTMENT OFFICE

INVESTMENT STRATEGY, THEMATIC & into investment views on interest rates, currencies SUSTAINABLE and commodities, taking a top-down view.

The Group Chief Investment Office oversees the In addition, they formulate and communicate following multi-country teams, which are focused thought-leadership views to all stakeholders. This on carrying out specific roles to support Quintet is featured in a range of publications and formats, investment activities: internally and externally, and provides a single compelling narrative, expressed in four languages. SUSTAINABLE

This is the fastest-growing area of finance. We The goal is to produce provocative research and embed sustainability as a default, and not just analysis to help deliver positive risk-adjusted returns as an add-on. This is authentic, innovative and and earn the trust of the individuals and families we impactful. We embed sustainability throughout serve. We follow a rigorous macro & forex forecasting Quintet, from our corporate identity to our process and deliver engaging content to capture investment process. The latter extends across mindshare, increase CIO and company visibility, and the value chain, from capital market assumptions, contribute to the investment process. 27 to the asset-class universe and instrument implementation. DIRECT LINE EQUITY AND FIXED INCOME

ASSET ALLOCATION These teams create equity and fixed-income propositions for our clients that are unique and Asset allocation is the pathway to being the different. We believe in a high-conviction thematic most trusted fiduciary of family wealth. The team defines optimal portfolios for the long term discretionary portfolio management-led approach. and then navigates the financial markets over a A disciplined, repeatable and transparent 2020 Annual Report2020 Annual shorter-term horizon to grow our clients’ wealth investment process. and help them achieve their individual goals, while creating a positive client experience. THEMATIC The future of the economy and environment is They are responsible for strategic asset shaped by powerful structural trends. We help allocation (SAA) and tactical asset allocation clients invest in the technologies and services (TAA) across Quintet. Helping our clients to stay of the future. This team utilizes a quintet of invested over the long term is the best way to structural forces to assess a changing world: reach their goals. demographic change, regulatory waves, social shifts, sustainability, and technological progress. The team follows a disciplined asset allocation process to use the risk budget most effectively. KREDIETRUST LUXEMBOURG By creating a positive client experience through good performance and engaging Established in Luxembourg in 1987, Kredietrust communication on asset allocation topics, we Luxembourg (KTL) is a 100%-owned asset aim to maximize client satisfaction and share of management subsidiary of Quintet Private Bank. wallet. KTL’s core activities include the management of investment funds under the commercial brand MACRO & FOREX “Rivertree.” KTL also provides investment fund This team forecasts key trends shaping the economic services for third-party management companies, and policy outlook to provide a macro framework for acts as a transfer agent and as an administrative investment decisions. They translate such analyses agent. GLOBAL MARKETS, TREASURY, FX & BULLION

Global Markets provides integrated one-stop-shop equity and derivative orders for a volume of more solutions to meet the financial market needs of than €6.8 billion. Quintet clients across all segments: from affluent, HNWI and UHNWI private clients to external asset As our asset allocation teams constantly adjust managers, family offices and institutions. In line their fund recommendations, Global Markets seeks with this, Global Markets offers execution for a to deliver efficient and accurate execution through full range of products listed and traded over the enhanced technology and connectivity. counter. The Treasury team offers our clients deposit rates on We completed over 23,000 fixed-income the money markets in a wide range of currencies. transactions on behalf of private and institutional clients in 2020, while also consolidating our On the currency front, Global Markets’ clients position as a buy-side client with keenly monitored mainly trade in the G7 currencies. We nevertheless market pricing. offer a full range of spot, forward and swap solutions on all currencies, deliverable and non- 28 Our fund-execution business remains a key deliverable, for both private and institutional inflection point with our private and institutional clients. clients. We offer our clients a universe of more than 35,000 funds, managed by 500 transfer Global Markets has longstanding expertise in agents. In 2020, we handled nearly 100,000 trades precious metals. We actively trade gold, silver, for a volume of more than €8 billion. In addition, platinum and palladium, both physically (bars we manage high volumes in ETF through our care- and coins) and in forward contracts. We also offer order service. In 2020, we executed almost 57,000 secure custody services. 2020 Annual Report2020 Annual 2020 IN REVIEW: AFFILIATES & BRANCHES

BROWN SHIPLEY INSINGERGILISSEN

Despite the COVID-19 pandemic, which led to InsingerGilissen, Quintet’s Dutch branch, can look the majority of staff working remotely, Brown back on an exceptional year. 2020 was demanding Shipley’s 2020 performance was resilient. Quintet’s at every level but, despite the impact of the UK wealth manager continues to grow, having pandemic, also very successful. quickly adapted to remote working and enhancing its digital channels to continue meeting client InsingerGilissen earlier launched its “Richer Life needs. That includes by upgrading the capabilities campaign,” fully rolled out in several Quintet of the MyBrownShipley app, where clients can markets and on social media, which led to new now receive an instant lending quote. Clients business opportunities and coherence in company- appreciate this approach, and we have an average wide communication. It supported our company net promoter score of 60, compared to the values perfectly in a year when we all had to adapt industry average of 46. to extraordinary external conditions. 29

We are focused on strategic growth. In April Starting in March, events and physical meetings were 2020, we finalized the integration of NW Brown replaced by webinars, Teams conferences were held & Co Limited into Brown Shipley. We also made with clients and colleagues, and there was more social a number of senior front-office hires, including a media activity than ever before. With colleagues new Head of Private Banking and new Heads of split between various offices and at home, and no London, Manchester and Edinburgh. Additionally, face-to-face contact with clients, business operations we have enhanced the bench strength of our Risk nevertheless continued normally – and thrived. and support functions. Report2020 Annual In this unprecedented year, InsingerGilissen was We have been recognized for our offering, delighted to be named “Best Private Bank in the including receiving the WealthBriefing award for Netherlands” by the independent market news Best Credit Provider and the Wealthnet award platform IEX for the third year in a row, outperforming for Top Financial Companies, as well as being its peers with five-star ratings in organizational set-up, shortlisted for a number of other awards. We also costs, risk management, investment policy and returns. continue to raise our profile across key UK media. InsingerGilissen saw a record level of lending, new clients and net inflows, despite the challenges.

Notably, client satisfaction has gone up, as can be seen from our ongoing client satisfaction tracker. Tangible improvements were also made in our investment research offering, with the introduction of Quintet’s “Counterpoint,” a suite of daily, weekly, monthly and half-yearly online publications. MERCK FINCK PUILAETCO LUXEMBOURG

Merck Finck, Quintet’s German branch, is the 2020 will be a year future generations remember as trusted partner for wealthy German clients and one in which the world faced the COVID-19 pandemic their families. From 16 locations across Germany, and tried first to contain it and then to defeat it. some 300 dedicated staff offer a wide range of wealth management solutions to their clients on To operate during that extraordinary time, a daily basis. In 2020, Merck Finck celebrated the Puilaetco Luxembourg had to modify its 150th anniversary of its founding. The Merck Finck organization completely, with sometimes no Stiftungsfonds (Germany’s first foundation fund) more than 20% of staff working on site while all turned 30 and was awarded the top five-star rating others worked from home. These circumstances from Morningstar in the “defensive mixed funds” meant that the bank had to pass a live and urgent category. business continuity test. We did so successfully. 30 Merck Finck continued its digital journey by Client portfolio management results at the launching a new advisory tool and optimized end of the year were generally in line with the portfolio reporting. positive performance of stock market investment strategies. Defensive and bond strategies were In June 2020, Thomas Rodermann was appointed not profitable, however, and the bank’s opinion of the new Chairman of the Executive Board at Merck such strategies remains negative for 2021. Finck Privatbankiers AG. This was in addition to his role as member of the Group Executive Over the year, we continued to focus on our core 2020 Annual Report2020 Annual Committee at Quintet Private Bank. He prepared business, managing the wealth of our private clients. the integration of Merck Finck into the parent There was no recruitment at Puilaetco Luxembourg company Quintet Private Bank (Europe) S.A., which in 2020, since cost control remains one of was successfully completed on December 15, 2020. management’s top priorities. Other priorities include risk and compliance, where the bank continued to On this date, Merck Finck became the German adapt its high level of control to the challenging branch of Quintet Private Bank, led by a dedicated environment of constantly evolving regulations. country management team. At the same time, Rodermann was named a member of the Puilaetco Luxembourg was back in the credit Authorized Management Committee of Quintet business in 2020, granting safe Lombard loans Private Bank and CEO of Quintet Europe. (up to €10 million or more with the support of its parent company). Very good results were recorded, providing a profitable alternative to use the bank’s cash and that of its clients.

The bank’s deposits increased by 1% compared to the previous year, mainly due to the markets, with a substantial volume effect compensating for gross outflows. These were partly due to the transfer of some client assets to banks outside Quintet. PUILAETCO QUINTET LUXEMBOURG

Headquartered in Brussels, with offices in six Quintet Luxembourg is a leading wealth manager other cities in Belgium, Puilaetco offers efficient in the Grand Duchy, staffed by 300 professionals, personalized, holistic and sustainable wealth including 50 client advisors. management solutions. For more than 70 years, we have served as a Building upon a commitment to excellence and trusted wealth management partner that strives to high-added-value services that began in 1868, meet the evolving needs of our clients each day we embrace the spirit of change required by a and for generations to come. constantly evolving environment, including by investing in digital solutions. This enabled us to We provide a wide range of holistic services, quickly respond to the pandemic: staff members including wealth planning and structuring, credit, easily switched to home working and offered asset management, global market access, and 31 video-conference solutions to stay in touch with institutional and professional services. our clients. We offer deep local insight and – through Quintet’s In this and everything we do, our goal is to build 50-city network of boutique private banks – global a richer life with our clients – today, tomorrow and perspective. for generations to come. Puilaetco aims to become the best-known private bank in the Belgian market. Each private client benefits from a long-term, one- to-one relationship with a client advisor who listens Our more than 200 staff provide a wide to their needs and understands their experience Report2020 Annual range of personalized services for our HNWI before proposing open-architecture solutions clients, including wealth planning, investment that are structured to meet their individual management, loans, fine art collection requirements. management and sustainable investing. In 2020, we conducted a thorough review of our offer in Asset Servicing & FIM clients, in turn, benefit order to ensure that the right services are offered from access to tailored investment vehicles, a to each client, in line with their profile. world-class dealing room, independent asset management and a network of sub-custodian A client-focused organization with over €10 billion banks of the highest quality from a single point of in assets under management, Puilaetco continues entry: their client advisor. to develop, strengthening existing relationships, attracting new clients and looking to the future While clients can always count on a personal with confidence. relationship, a range of services is also available via myQuintet and myQuintetpro, the bank’s online platforms. QUINTET SWITZERLAND QUINTET DANMARK

Quintet Private Bank (Switzerland) Ltd, a member Quintet Danmark, a branch of Quintet Private of Quintet Private Bank, is located in the heart Bank (Europe), was established in 2020, officially of Zurich’s financial center and serves wealthy opening for business in July 2020 in the heart individuals and families with diverse and complex of Copenhagen. We offer our clients a variety long-term needs. In May 2020, Switzerland’s of wealth management services, including newest private bank opened for business following discretionary portfolio management, investment the successful closing of the acquisition of Bank advisory, financial planning, credits, SICAV and SIF. am Bellevue, the former wealth-management division of Bellevue Group. Quintet Danmark carries out its activities solely using established operational processes performed People are the key to Quintet Switzerland’s success. from Luxembourg on its behalf. We have already successfully attracted a range of 32 industry leaders and talent across all functions. In Quintet Danmark is focused on meeting the addition to some 20 professionals who formerly long-term wealth management needs of Danish served at Bank am Bellevue, Quintet Switzerland individuals and their families, combining a highly onboarded around 50 people over the course of personalized approach with independent advice 2020, allowing the bank to take significant steps and open-architecture investment solutions. towards implementing its ambitious plans. The team also worked hard towards upgrading core The branch is led by Henrik Wyrwik, a senior banking systems and other processes with the aim manager with more than 30 years of industry 2020 Annual Report2020 Annual of expanding its platform to include even more experience. With a small team of experienced sophisticated clients and higher volumes. and motivated colleagues who share the same commitment to doing the right thing for each Quintet Switzerland’s commercial strategy is to become client they serve, Quintet Danmark acts with agility a center of competence for international cross-border and energy to challenge the status quo. business (Asia, Latin America, Middle East) for our group, as well as to open access to Switzerland, one of Drawing upon the insight and resources of the wider the largest wealth-management markets. Quintet family, Quintet Danmark seeks to build a robust business that stands out from the crowd. We see Quintet Switzerland’s comprehensive advisory enormous long-term opportunities to extend Quintet’s approach, multi-family-office capabilities and cross- highly personalized approach to wealth management border offering are what sets it apart. At a time to the Nordics, a region where independent thinking when independent, client-focused advice matters and entrepreneurship is part of the DNA. more than ever, Quintet continues to deepen its group-wide commitment to sustainable investment. We are actively recruiting additional staff, in Since inception, the bank’s balanced strategy has particular experienced client advisors, as our resulted in attractive returns in core DPM (Quintet business continues to grow. Diversified) and, at the same time, strategic risk management and good stock selection in Swiss Equity Hedged has paid off, leading to very satisfactory performance for clients. We add insight and reduce complexity

Our clients count on our expert insight, provided by a diverse team of experienced professionals who balance firm convictions and an open- architecture approach – ensuring that each client has access to the solutions that are right for them. Through such objective investment advice and organizational agility, we cut through complexity and focus on meeting the needs of the individuals and families we serve. NON-CONSOLIDATED MANAGEMENT REPORT

GENERAL COMMENTS ON THE RESULTS Solvency is solid and remains well above regulatory AND THE BALANCE SHEET threshold imposed by the European Central Bank at 28.5% (2019: 40.1%). The decrease of the year is As of 31 December 2020, Quintet Europe’s non- the result of the merger (more risk-weighted assets consolidated financial statements include: and lower CET1, both due to the inclusion of the • Quintet España, the Spanish branch opened branches) mitigated by a capital injection of €50 on 7 April 2010 million in the first quarter 2020 and the placement • Quintet Danmark, the Danish branch based of €125 million in additional tier-1 (AT1) notes in in Copenhagen, opened for business on October 2020. The proceeds from the notes are 1 July 2020 (legally opened in May 2020), used to support the financing of Quintet’s long- representing a major step forward in the term growth while further reinforcing the bank’s Group’s long-term plan to establish and strong regulatory capital position. grow a robust Northern European franchise, 34 through organic initiatives and potential Affected by the implementation of the new acquisitions “Quintet Europe” commercial and organizational • Merck Finck, the German branch strategy, Quintet Europe shows a 2020 loss of €-98.3 million compared to a profit of €60.3 million • InsingerGilissen, the Dutch branch in 2019. • Puilaetco, the Belgian branch In 2019, the Bank proceeded to the sale and The last three entities merged with Quintet transfer of buildings owned or occupied in Luxembourg on 15 December 2020 with a Luxembourg. Those operations generated a profit

2020 Annual Report2020 Annual retroactivity to 1 January 2020 in the context of the of €127.4 million in the other income category. “Quintet Europe” project.

For detailed figures, please refer to the non- At the end of the financial year 2020, Quintet consolidated financial statements. Europe’s balance sheet totalled €12.2 billion. This increase versus 2019 (€8.7 billion) is mainly due https://www.quintet.com/en-GL/Pages/ to the merger of the German, Dutch and Belgian Annual-reports subsidiaries that became branches. On a pro-forma basis (out of the merger), the total balance sheet reached €9.2 billion at year-end 2020 and reveals increasing lending activity in a financial position which remains healthy and comparable to the previous year. APPENDICES TO CONSOLIDATED AND NON-CONSOLIDATED MANAGEMENT REPORT

APPENDIX 1 As for investor protection, the Luxembourg investor compensation scheme (SIIL: “Système d’indemnisation DEPOSIT GUARANTEE des investisseurs Luxembourg”) covers investors These directives were transposed into Luxembourg (natural persons and legal entities) in the scope of the law by the law of 18 December 2015. legislation (law of 18 December 2015). The investment transactions made by the same investor are covered In Luxemburg, the national deposit guarantee scheme up to an amount equivalent to €20,000. (DGS) is represented by the FGDL (“Fonds de garantie des dépôts Luxembourg,” see the website www.fgdl.lu). Quintet and its branches are also an SIIL member, in the scope of which eligible investors are covered. The purpose of the FGDL is to protect clients of the member institutions in case a bank goes bankrupt. APPENDIX 2 COMPLIANCE RISK Quintet (and its branches) are an FGDL member. As a 35 member, account holders (natural persons and legal The Compliance function’s specific responsibilities entities) in Quintet and its branches (InsingerGilissen, include: Merck Finck, Puilaetco, Quintet Danmark and Quintet Spain) are protected by the FGDL up to a maximum of • Identify, evaluate and assess compliance €100,000 per person/account (additional guarantees risks through the Compliance Risk are in place for temporary deposits, see the FGDL Assessment methodology website for details). • Identify the standards to which the Group

and each of its entities are subject in the Report2020 Annual In case of failure, FGDL ensures compensation of exercise of their activities in the various depositors within seven days. markets and keep records of the main rules • Implement a code of conduct and internal In order to be compliant with the legislation, Quintet rules of conduct and integrity, Compliance and its branches have since 31 December 2013, standards and policies; check that they implemented a system which is able to produce a are respected and regularly assess their Single Customer View (SCV) file including data about suitability as regards to organizational and all eligible cash depositors along with the customers operational structure, strategy, activities references. The Quintet system is tested twice a year. and risks of its entity, as well as regards to This set of information is requested by the CSSF in applicable legal and regulatory requirements order to facilitate the reimbursement of depositors in case of the bank’s failure. • Organize and coordinate a risk-based Compliance Monitoring Program to control Each year, Quintet pays a contribution to the FGDL for the level of compliance of all relevant its financing. activities and how the identified compliance risks (Compliance Risk Assessment) have In 2020, Quintet paid €110,780 for the FGDL (2019: been mitigated. All relevant changes to the €170,666) and €3,513,600 for the Luxembourg group/entity’s compliance risk profile (e.g. Resolution Fund (2019: €2,498,855). reorganization, new strategic markets) will be taken into account in the Compliance Considering the amount paid for the FGDL during Risk Assessment and in the Compliance the current year, the same amount of €110,780 was Monitoring Program transferred back from the unavailable to the available • Centralize all information on detected reserves. Compliance problems. If this information is not a direct result of Compliance’s own Compliance measures. This committee is involvement, it will examine the relevant delegated by the Board and meets on a internal documents (Internal Audit reports, quarterly basis Risk function reports, Legal department opinions, Executive and Management 2.1. ADVICE AND PREVENTION Committees’ minutes/papers, Board of Compliance advises and supports the bank’s various Director meeting minutes, etc.) or external business lines. It regularly supports commercial documents (external legal opinions, external initiatives and the questions that can arise from auditor’s reports, correspondence with the them. Compliance is also involved in the bank’s client supervisory authorities, etc.) acceptance and revision procedure. • Analyze the detected issues, recommend corrective measures and monitor their It should be noted that Compliance takes part in implementation the validation of new products and services for their 36 • Assist and advise senior management, marketing to clients. The goal of this process, which the AMC and the Board of Directors as incorporates support materials such as brochures well as the members of the Specialized and term sheets, is to ensure that clients understand Board Committee (if any) in managing products and their risks and make informed compliance risks and standards, including by investment decisions that comply with existing informing them of developments that may regulations. This process was strengthened by the have a subsequent impact on the area of entry into force of MiFID II. Compliance 2020 Annual Report2020 Annual • Ensure employees are well trained and have Compliance is also involved with various regulatory a sufficient level of Compliance awareness projects. Compliance participates in the group- by developing and implementing an ongoing wide high-level assessment analysis and provides Compliance Awareness Program and by workstreams with appropriate regulatory roadmaps. providing day-to-day assistance as to In addition to its ongoing monitoring and support Compliance areas of branches and subsidiaries, the group continued to support the rollout of the Compliance Awareness • Be involved in the implementation and program across Quintet. approval of new activities/products, in the development of new business relationships This program is primarily based upon a systematic and in developing the transactions and and structured multi-annual approach with training network of the Group at international level sessions, depending on the person’s level of exposure • Be involved in the development of internal to Compliance risks. The program is accompanied by policies and procedures in Compliance areas regular information for employees and managers on • Correspond independently with the FIU Compliance risks according to what is topical (internal (Financial Intelligence Unit) or with any other or external). supervisory authority when its relates to Compliance notification/declaration duties 2.2. CONTROL • Report on the above to the AMC and The Compliance control framework is part of the the Board of Directors/Specialized bank’s general internal control framework. The Board Committee (if any), as appropriate. Compliance Monitoring teams continue to oversee Furthermore, the Board Compliance & the Compliance Monitoring Programme (CMP). Legal Committee (BCLC) is informed of, This tool maps compliance risks and regularly and regularly monitors, the adequacy of checks that these risks are under control. If necessary, suggestions for improving the plan are In 2020, quantitative developments were mainly put forward. The plan has been drawn up based concerned with the setting of risk models in on the results of a Compliance Risk Assessment compliance with the prescriptions of model risk aimed exercise. This methodology for evaluating at identifying, monitoring and mitigating model risk. compliance risk targets a more refined and better Consequently, onboarded models have gone through documented risk analysis to better allocate a cycle of review, adjustment and independent Compliance resources to the greatest risks. validation. The effort will continue over the course of 2021. Specialized anti-money laundering tools are in place at Quintet entities. These solutions improve The scope of operational risk has expanded over the the review processes for the group’s clients, last few years and includes, for example, conduct whether new or existing, both by analyzing client risk, compliance, legal, regulations, data protection, behavior and by screening the client database information risk and non-financial risk. and international lists of persons subject to legal 37 action or restrictive measures. An external tool Group Operational Risk implemented the Enterprise- specialized in the detection of market abuse and wide Risk Management Framework (ERMF) to govern insider trading is in place while also being used to the organization and management of non-financial risk automate checks to ensure that the Best Execution within Quintet Group. policy is adhered to when processing client orders. All non-financial risks have a Risk Appetite Statement Quintet is constantly adapting its control and Framework document with clear and enforceable

procedures and reiterating to staff the ongoing Group standards. Report2020 Annual need to protect clients. In 2020, the Group conducted the annual RCSA APPENDIX 3 exercise in which all key processes were assessed to also identify the changes in the universe of risk RISK MANAGEMENT impacting the business and support functions. 3.1. MISSION & ACHIEVEMENTS Inherent risks were identified through a full review Quintet’s risk appetite is revised, updated and process performed by respective functions with the approved by the Board of Directors at minimum support of the GORC and BRM functions, and through once per year or when a change of organizational a control-testing programme resulting in the residual risk profile is implemented. Changes are thereafter risks’ conclusion and potential ERI items. communicated to the whole organization. During this phase, the Group considers the evolution of risk In term of Information Risk – acting as an independent appetite, regulatory and internal capital requirements, second line of defense in close collaboration and the risk-bearing capacity of the Group. with IT Security and Data Protection Officer – the development of a dedicated Information Risk During the course of 2020, the risk taxonomy Framework (including a proper risk appetite and a has been thoroughly updated. The Risk Appetite comprehensive set of policies) has been achieved and Statement and relevant risk frameworks have been rolled out across the Group. reviewed and strengthened to support the current and planned business development of the Group. 3.2. STRUCTURE & ORGANIZATION The ICAAP, ILAAP and Recovery Plan have been substantially improved following new regulatory In view of the Group’s structural transformation, the guidelines and ECB recommendations. second line of risk defense has been reorganized by strengthening its teams around group competence - Review, assessment and follow-up of centers. information risk control self-assessments (RCSA) as performed by the first line of Risk Control entities fulfill a second line of defense defense role, the first line being assumed by the entities at the • Identification, review and measurement of source of risk. In this context, they ensure that each information risks: key risk the Group may be exposed to is properly - Review, assessment and follow-up of identified, measured, monitored and reported. IT risk analysis performed by the first line of defense in the context of IT- As of December 31, 2020, Group Risk Control is related projects, IT environments and organized into four departments with a total of 43.1 relationships with external IT providers full-time equivalent employees (FTEs) across its - Review, assessment and follow-up of entities. information risk control self-assessments 38 The Group Information Risk Control department’s (RCSA) as performed by the first line of objective is to act as a second line of defense for defense controlling IT and Security risks related to digital/ • Monitoring, control assessments and follow-up electronic information and assets. on mitigation of information risks: - Information risks are regularly monitored, The department (5.7 FTEs) is in charge of developing and relevant Key Risk Indicators are and maintaining the Information Risk Control assessed and adjusted Framework, to implement related IT risk policies, 2020 Annual Report2020 Annual - Information risk mitigation action plans to monitor control implementation and to ensure are followed-up upon to ensure proper adequate reporting over its activities to dedicated implementation and/or possible residual instances. risk acceptance • Information risk incident monitoring: The key activities are the following: - Incidents are reviewed and monitored • Implementation and maintenance of the to ensure resolution and adequate Information Risk Management Framework, escalation to the dedicated entities including: - Involvement in specific investigations - An effective information risk management upon the request of the Authorized governance and information risk appetite Management Committee approach • Escalation and internal reporting: - Definition of information-risk control - Indicators, direction proposals, policies aligned with the Bank’s exceptions and potential issues are information-risk appetite and regulatory regularly escalated and reported requirements to dedicated instances (e.g. Group • Identification, review and measurement of Information Security & Risk Committee, information risks: Board Risk Committee) for adequate information, management and decisions - Review, assessment and follow-up of IT risk analysis performed by the first • Alignment and awareness programs: line of defense in the context of IT- - The information risk-control culture related projects, IT environments and is spread within the Group, including relationships with external IT providers through communication to branches and subsidiaries and local representatives to • Independent second line of defense function ensure effective reporting at the Group that oversees, challenges and advises the level activities of the first line of defense to prevent - Similarly, information-risk control policies operational risk losses and best practices on critical topics are • Identify, assess and manage operational risk communicated to staff through adequate and ensure alignment with the risk appetite awareness programs • Maintain a robust control environment by strengthening the risk culture and enabling The Credit Risk Control department, with 10.5 FTEs, business growth and preserving value is in charge of monitoring credit risk for Luxembourg and for the Group, which arises from the following The department is also accountable for: activities: • Independent validation of the appropriateness 39 • Lombard & mortgage lending to private clients of identification, evaluation and responsive in support of the Bank’s core private banking actions determined by management activity • Reporting and monitoring of issues, including • Committed and uncommitted credit lines escalation where appropriate granted to investment funds in support of • Establishing and managing discussion forums institutional & professional services activity for operational risk issues

The department is also involved in defining and In addition, the following activities form part of the Report2020 Annual complying with criteria for accepting securities taken GORC responsibilities: as collateral, and acts as secretary for the Group credit committee. • Risk Control Advisory • Risk reviews with new business/markets/ The Lending Management department reports to the products/process improvement/change/ Head of Credit Risk Control. Lending Management is transformation/outsourcing in charge of: • Enterprise-wide Risk Inventory (ERI) • The implementation of loans by the parent governance, oversight and reporting company (especially the drafting of the loan • Second line of defense control testing (check documentation, as well as the complete setting and challenge) up of the securities in accordance with the • Reporting to the AMC, Boards and credit decision) regulators • Risk monitoring of each parent company loan • Scenario analysis & ICAAP reporting facility during its lifetime • Risk culture and awareness operational risk • Secretarial support for the Luxembourg training and Group credit committees and acting as secretary for the Luxembourg Credit In each key entity, a committee (the Board Risk Committee Compliance & Legal Committee, or “BRCLC” in subsidiaries and the Board Risk Committee, or “BRC,” The Group Operational Risk Control (GORC) at Quintet) supervises operational risk management department, with 13.5 FTEs, has the following process and takes appropriate decisions. responsibilities: The Financial Risk & Reporting department (13.4 • The department is in charge of risk modelling FTEs) has various responsibilities: and quantitative analysis. It designs and implements all risk models (market, credit • It monitors and escalates market risk (interest and operational VaRs, internal stress test, rate, price, currency, real estate and liquidity product scoring, ECL, etc.) and provides risks) carried by the entire balance sheet, quantitative support to other Group and including both ALM and trading activities local functions The department is as well to the different levels of management from responsible for risk data management, Global Markets/ALM senior management designing and maintaining an efficient risk to the Board Risk Committee. Group database and reporting tool liquidity risk, including the reporting and • The department covers transversal risk the interpretation and implementation of EU matters, such as internal and regulatory risk regulatory requirements, is also under the reporting (i.e. monthly/quarterly risk reports, 40 Financial Risk & Reporting responsibilities ICAAP, Recovery Plan, Single Resolution • The department is also responsible for (i) Board reporting, etc.) and regulatory watch portfolios of fixed-income investments, in in addition to the risk-related projects the context of the reinvestment of excess through the Group liquidity, (ii) counterparty risk linked to money market transactions contracted between Global Markets and a network of banking counterparties, and (iii) credit risk

2020 Annual Report2020 Annual carried by the network of sub-custodians RESULT ALLOCATION PROPOSAL

At its meeting on March 31, 2021, the Board of Directors proposes to allocate the 2020 net loss of €-98,312,227 to the retained earnings.

On April 23, 2021, this allocation will be submitted for the approval of the Annual General Meeting.

41 2020 Annual Report2020 Annual COMPOSITION OF THE BOARD OF DIRECTORS

The Ordinary General Meeting of April 15, 2020, approved the renewal of the mandates of the following Directors:

• Jan Maarten de Jong • George Nasra • Albert Wildgen • Marco Mazzucchelli • Peter Vandekerckhove

The Ordinary General Meeting of April 15, 2020, also approved the appointment of Rory Tapner and Jakob Stott as members of the Board of Directors subject to regulatory approval.

42 Following the approval of Rory Tapner as Chair, Jan Maarten de Jong handed over the Chairmanship of the Board of Directors to Rory Tapner on May 26, 2020, and resigned the same day.

Jakob Stott was confirmed as a Board member on June 22, 2020.

The mandates of the following Directors ended on December 15, 2020:

• Anne Reuland

2020 Annual Report2020 Annual • Peter Vandekerckhove • Alfred Bouckaert • Albert Wildgen DECLARATION ON THE CONFORMITY OF THE 2020 ACCOUNTS

We, Jakob Stott, Group CEO, and Nicholas Harvey, Group Chief Financial Officer, confirm, to the best of our knowledge, that the consolidated accounts, which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union, give a true and fair view of the consolidated assets, liabilities, financial position and consolidated profit or loss of the Quintet group, and that the consolidated management report includes a fair review of the development and performance of the business and the position of the Quintet group together with a description of the principal risks and uncertainties that the group faces.

Luxembourg; March 31, 2021

JAKOB STOTT NICHOLAS HARVEY Group CEO Group Chief Financial Officer 2020 Annual Report2020 Annual 24.92% -21% -61%

NON-FINANCIAL & DIVERSITY INFORMATION 51% 49% €474,000

In line with European Commission Directive ENVIRONMENTAL IMPACT 2014/95/EU on the disclosure of non-financial In 2020, as a consequence of the CO2 and diversity information, Quintet Private pandemic, our planet heaved Bank is pleased to provide its annual report a sigh of relief. As economic of environmental, social and governance- activity slowed and people related initiatives and impacts, complementing travelled less, the pall of smog 31h the information provided in the group’s 2020 over countless cities thinned. At consolidated and non-consolidated report. Quintet, like at firms worldwide, our own environmental impact Wherever possible, the information and data was reduced dramatically, as reflected in this report. contained in this report encompass the activities of the group as a whole. Given that the group’s As we look forward to the post-pandemic world, headquarters are in Luxembourg, where 33% we all need to contribute to a recovery that 44 of its staff is based, particular emphasis is delivers lasting, positive change. We must build placed on Quintet’s environmental, social and back better – not simply return to business as governance-related initiatives and impacts in the usual. Grand Duchy. At Quintet, we can make a measurable impact in SUSTAINABILITY & RESPONSIBILITY this regard through our actions as a firm and the investment solutions we provide, including through In a period marked by rapid social change and our commitment to making sustainable investing deepening environmental concerns, sustainability – our default approach. We can deliver performance 2020 Annual Report2020 Annual in every sense of the word – has never been more and make a lasting difference. There’s no trade-off. important for companies, no matter where they are based or their sector or activity. In every market in which we operate, Quintet is making a sustained effort to reduce its carbon Financial services organizations have a unique footprint, including by minimizing electricity usage, opportunity to demonstrate to their stakeholders maximizing the recycling of paper and other waste, (including but not limited to clients, employees and privileging public transportation and seeking local the community at large) that they act responsibly. solutions insofar as possible. At Quintet, we are committed to doing well for our clients, doing right by our people and doing In Luxembourg, the Real Estate & Logistics well in the communities in which we operate. That department develops, executes and follows up on commitment is shared across our group and brought such environmental impact initiatives, acting under to life by our 2,000 staff in 50 European cities. As the supervision of the Group COO. a fully compliant company, we ensure that we are a sustainable, trusted and committed partner for our Carbon footprint: In September 2016, the group clients, truly integrated in our communities. entered into a partnership with Egencia, a business travel solutions provider. Consequently, we track, trace Founded in Luxembourg more than 70 years ago and seek to reduce our carbon footprint at group and with centuries of collective heritage, we know level. At the same time, our policy is to that our group must continue to change with the favor and actively promote business- times to bring that commitment to life. We are related travel by public transportation therefore pleased to report, for the fourth time, (including train, bus and on some our environmental, social and governance-related occasions carpooling). initiatives and impacts – recognizing that such reporting can and must grow richer over time. Paper usage: In line with best practices, printers FLIGHT CARBON FOOTPRINT BY CO2 EMISSIONS, at every group entity are preconfigured to print IN KG, BY QUINTET ENTITY IN 2019 & 2020 in black and white and recto-verso, reducing 2019 2020 paper and ink usage. All entities also use FSC-certified paper, Quintet Luxembourg 298,367 90,963 ensuring that the wood Merck Finck 176,645 42,988 within the product is from FSC-certified material, InsingerGilissen 35,879 21,636 recycled material or Brown Shipley 108,315 10,448 controlled wood. The group also developed and Quintet Switzerland n/a 3,661 put in24.92% place a long-term -21% -61% Puilaetco 9,862 1,500 internal awareness campaign to reduce unnecessary and/or Total 629,068 171,196 excessive printing. Consequently, the consumption of A4 paper in Luxembourg declined steadily. In Electricity consumption: Over the past several 2020, we consumed 1.48 million sheets of paper in years, reflecting increasing awareness of the Luxembourg, which corresponds to 178 trees. environmental impact of electricity consumption, Quintet, in Luxembourg and across the group’s FSC A4 PAPER CONSUMPTION AT QUINTET IN operations, has put in place measures to reduce LUXEMBOURG FROM 2017-2020 51% 49% €474,000 consumption. In Luxembourg, for example, 45 electricity consumption has been reduced by 61% 2017 2018 2019 2020 since 2013. Quintet 4,300,000 3,749,000 2,668,455 2,098,811 Luxembourg ELECTRICITY CONSUMPTION, IN GWH, BY QUINTET IN LUXEMBOURG FROM 2013-2020 Waste treatment: In Luxembourg, Quintet earned SuperDrecksKëscht®firCO2 Betriber status 12 years ago, 6.2 reflecting the organization’s sustained commitment to responsible treatment of waste, including the Report2020 Annual fact that some 50 tons of organic waste is annually converted into a source of industrial heating.31h The 4.8 country’s Environmental Administration, the Chamber 4.6 4.4 of Commerce, confers this status and Chamber of 2.96 2.4 Trades based on the sustainable management of waste in line with environmental standards.

SuperDrecksKëscht®fir Betriber status is certified 2013 2016 2017 2018 2019 2020 according to the international norm ISO 14024: 2000. The treatment and recycling of waste by companies with such certification integrates the The decrease in electricity consumption at requirements of the norm ISO 14024. Quintet in Luxembourg in 2019 was due to the outsourcing of data centers and the reduction in Since March 2019, Quintet has been a member the number of buildings. As for 2020, with most of of the “Zero Single-Use Plastic” initiative of our staff working from home, electricity IMS Luxembourg in order to abolish single-use consumption decreased further. plastic and reduce waste. This project led to the eradication of disposable plastic utensils (such as In addition, since January 2020, plates, cups, cutlery and straws) in our canteen. the supply of electrical energy Likewise, we set up a reusable food container called in our Luxembourg offices “EcoBox” for takeaway, removed plastic bottles from has been derived entirely dispensers and introduced new waste sorting bins. 24.92% -21% -61% from renewable sources of hydroelectric power, as certified by the Luxembourg Energy Office.

51% 49% €474,000

CO2

31h 24.92% -21% -61%

In 2019, InsingerGilissen acquired a 1930’s villa QUINTET IS A SIGNATORY in Eindhoven for its new office there. This historic TO THE “ZERO SINGLE building presented a challenge since it had a poor USE PLASTIC” CHARTER energy score (G). With sustainability and energy savings in mind, the renovation work took nine Throughout51% our operations,49% months and resulted€474,000 in the building receiving the we committed to banning best energy score (A). Some of the green solutions single-use plastics. At Quintet used included LED lights with presence timers, roof- Switzerland, for example, clients to-floor insulation, high-end central heating, etc. and staff are provided with reusable dishes and cutlery. Everywhere we do business, we INVESTOR ENGAGEMENT & ACTIVE OWNERSHIP no longer provide any single-use plastic products In February 2020, Quintet joined Climate Action – in lineCO2 with a pledge our firm made early in 2020. We are proud to have lived up to that promise. 100+, a leading collaborative investor engagement initiative, seeking to ensure that the world’s An initial audit of single-use plastic at Quintet in largest corporate greenhouse gas emitters take the necessary action on climate change. Investors Luxembourg – conducted by IMS, a network31h of Luxembourg companies involved in CSR – showed such as Quintet participating in Climate Action annual consumption of 1,412 kilos of single- 100+ engage the world’s largest 100 “systemically use plastic. A subsequent audit, conducted in important emitters,” plus more than 60 other December 2020, showed that annual consumption companies that have been identified as having material climate-change investment risks or 46 had been reduced to just 9 kilos, a reduction of 1.4 tons of single-use plastic. that will be key to a broader net-zero emissions transition. We believe joining this initiative is Sustainable construction a logical step to protect our planet and as we Across Quintet, we are investing in recognize the importance of climate risk in our environmentally-conscious infrastructure, changing investments. the way we interact and work. In Switzerland, a sustainable acoustic ceiling was installed at our We place sustainability at the heart of our business new offices at Gartenstrasse: the installation is and as the driver of the investments we make on 2020 Annual Report2020 Annual made of recycled PET and not only improves behalf of our clients. We engage as active owners acoustics, but also lends a dynamic and unique because we are convinced that more sustainable touch to offices and meeting rooms. practices make for better companies, benefitting shareholders, people and the planet. Brown Shipley relocated to a new purpose- built, eco-friendly office in Nottingham. The new Active ownership entails identifying companies office is part of Brown Shipley’s drive to reduce with environmental, social and governance its carbon footprint and includes features such issues and/or business strategy deficiencies, and as solar panels, electric vehicle charge points, working with management through dialogue energy efficient heating and lighting, covered and shareholder meetings to improve company cycle storage and recycling stations along with practices and performances. dedicated video conferencing rooms. The space is also designed to encourage flexible working. Voting by Quintet and all its affiliates is centralized Engagement addressed key risks, challenges by a Voting Committee. The latter monitors and opportunities faced by companies, covering recommendations of our proxy voting provider, environmental, social, governance, strategy, risk Glass Lewis, to ensure consistency with Quintet and communication matters. Engagement covers policies. This centralized organization ensures companies in which we hold shares or bonds on harmonized decisions for all our holdings. We behalf of our in-house managed funds and advisory seek to vote, where possible and feasible, at all and discretionary mandates. shareholder meetings of the companies in which we invest for our clients. Currently, we vote for SOCIAL RESPONSIBILITY direct line equities held by Brown Shipley, In every market in which we operate, Quintet InsingerGilissen Asset Management and Rivertree Investment Funds. recognizes diversity as a source of strength, invests in the life-long professional development of our people and commits to contributing to the well- OVER 10,000 PROPOSALS being of the local community. VOTED AT 710 MEETINGS In each of our markets, the local HR department, Quintet exercises active supported by Group HR, develops, executes and ownership by voting at general follows up on policies and strategies to measure meetings and through dialogue and promote staff diversity, and leads staff training with companies. In 2020, Quintet and professional development activities. Corporate social responsibility activities are typically led by voted on over 10,000 proposals at more than 710 47 shareholder meetings across the world. HR and Corporate Communications, with oversight by senior management and/or a committee During the year, we supported 96% of dedicated to CSR actions, which must be in line environmental-related proposals. We notably with the established Group CSR Policy. Such encouraged increased disclosure of companies’ budgets are allocated locally. environmental risk and supported all proposals requesting companies to develop greenhouse Diversity: Quintet is an equal-opportunity employer, gas emissions reduction goals. We also supported committed to ensuring that every employee – all proposals flagged by Climate Action 100+ for no matter their gender, their age, their sexual Report2020 Annual which we voted. These notably included lobbying orientation, the color of their skin or their physical disclosure resolutions at the meetings of Caterpillar, abilities – is treated with the respect and fairness Duke Energy, Chevron and Delta Air Lines. that everyone deserves. At the group’s headquarters and across our pan-European network, we place We supported 94% of social-related shareholder special emphasis on improving gender parity, over proposals. We widely supported proposals asking time, at all levels of organization. that companies sufficiently address human capital management and diversity issues, such as Approximately 50% of Luxembourg-based staff at the AGM of Alphabet, Amazon are female, while an average of 43% of staff in the and Walmart. group are women. Meanwhile, staff in Luxembourg (Quintet, KTL and Puilaetco Luxembourg) are highly multicultural, including 26 different 769 COMPANIES nationalities, led by French (38%), Belgians (33%) ENGAGED and Luxembourgers (12%). On average, affiliates employ staff of 15 different nationalities. In 2020, our partner, EOS at Federated Hermes, engaged The average age of a Quintet employee is 45, with 769 companies on our reflecting the level of experience typically required behalf on 2,849 environmental, for staff in this sector of activity; our employees social and governance issues and objectives. have served at the firm, on average, for 12 years. 24.92% -21% -61%

space in Luxembourg. Whether it is providing APPROXIMATELY 50% OF baskets of fresh fruit, employee changing rooms LUXEMBOURG-BASED STAFF and showers, or social activities, Quintet rewards ARE FEMALE its people for their hard work, 51% 49% €474,000 dedication and client-centricity.

Quintet actively seeks to hire, train PERCENTAGE OF PART- and promote younger employees. In TIME STAFF AT QUINTET IN Luxembourg, relevant actions include an LUXEMBOURG (2020) 24.92% initiative known as the “Kaleidoscope Programme,” a two-year, customized integration programme that 24.92% -21% -61% CO2 allows high-achieving recent graduates to explore Charitable giving: With key departments of the bank and gain a uniquely 2,000 employees based in 50 comprehensive understanding of the financial cities in Europe, Quintet has a services sector. This programme, initiated more unique opportunity to make a difference in local communities and to be a benchmark socially 31hthan 30 years ago, has produced generations of executives, with two participants in 2020. responsible financial institution everywhere it operates. Moreover, at Quintet, we believe we

COMPOSITION OF QUINTET PRIVATE BANK ENTITIES BY meet the needs of all our stakeholders by acting AGE, SENIORITY, GENDER & NATIONALITY as a positive and effective influence in local communities. By contributing resources and capital 51% 49% €474,000 Age Seniority Men Women Nat. 48 to worthy causes and initiatives, we serve as an Quintet Private Bank 45.8 14.6 325 321 26 agent of positive social change.

Merck Finck 48 13 150 128 7 In 2020, Quintet donated approximately €50,000 Brown Shipley 43 8.4 229 171 19 to charitable associations in Luxembourg, including the Fondatioun Kriibskrank Kanner (which Puilaetco Luxembourg 47 12.1 112 86 3 accompanies children fighting cancer or a CO2rare InsingerGilissen 47 12.2 232 123 20 and life-threatening disease and their families) the Quintet Switzerland 43 n/a 57 28 17 Luxembourg Autism Foundation, Relais Pour la Vie, 2020 Annual Report2020 Annual the Luxembourg Red Cross, Iles de Pix, Fondation Partage and many other causes. Whenever 31h Training, development & well-being: Training possible, Quintet facilitates opportunities for its is an imperative for all Quintet staff, no matter staff to participate in charitable initiatives. their age or experience, especially given the rapid pace of change in the private banking Outside the Grand Duchy, Quintet branches and sector. At Quintet, we provide our people with affiliates are likewise very active in their local ongoing opportunities to grow personally and community, including by sponsoring children’s professionally. Training ranges from IT to soft skills welfare initiatives (Puilaetco), cultural initiatives to language learning – ensuring that career growth (Merck Finck, InsingerGilissen and Puilaetco), remains continuous. and various fundraisers to support local charities (Brown Shipley). Quintet promotes flexibility and recognizes the In December 2020, Quintet appointed a corporate importance of work-life balance. In Luxembourg, social responsibility strategist to develop a more than one-quarter of all staff work part-time, group-wide approach to CSR. This will ensure and remote access is increasingly proposed as a Quintet’s operations and investment offering are solution – on a periodic basis, in line with relevant fully aligned and that both share the same highs regulations – particularly for working parents. In standards. In 2022, we aim to report on our new 2020, due to the pandemic, the vast majority of all corporate sustainability framework and, for the first staff primarily worked from home. time, on our group’s consolidated carbon footprint.

Across the group, investments are made on an ongoing basis in employee well-being, including significant enhancements to the physical office COMPLIANCE NORMS & POLICIES It documents sound practices to help ensure that Compliance function activities are managed and The Quintet Group, being Quintet Private controlled in an effective and consistent manner across Bank including all its branches and subsidiaries the Quintet Group locations and legal entities. (hereafter the “Group”), is committed to the preservation of its reputation and integrity through In addition, it describes the different mechanisms compliance with applicable laws, regulations and and processes implemented in order to ensure the ethical standards in each of the markets in which respective roles and responsibilities. Further it: it operates. All employees are expected to adhere to these laws, regulations and ethical standards, • Recognizes the right of Compliance to open and management is responsible for ensuring such investigations into any of the bank’s activities compliance. Compliance is therefore an essential • Defines the responsibilities and reporting ingredient of good corporate governance. lines of the Chief Compliance Officer As outlined in Appendix 2, Compliance Risk, • Describes the relationships with Risk the Compliance function is defined in the Management and Internal Audit Compliance Policy as a permanent and • Defines the applicable conditions and independent function. Its main aim is to protect circumstances for calling on external experts Quintet Group against the risk of non-compliance • Establishes the right of the Chief Compliance and against the risk of damage due to the non- Officer to contact directly and on their respect of internal or external rules that fall within own initiative the Chairman of the Board of the scope of Compliance or the fields attributed Directors or, where appropriate, members 49 to it by the Board of Directors and the Authorized of the Audit Committee or the Compliance Management Committee. The operating Committee, as well as the CSSF procedures of this function – in terms of objectives, responsibilities and powers – are laid down in the The Compliance function has in its scope all Compliance Charter drawn up by the Compliance compliance risks in connection with all activities of department and approved by the Authorized the Group and its entities, and primarily addresses Management Committee and the the following: Board of Directors. 2020 Annual Report2020 Annual • The fight against money laundering and the The Compliance Charter financing of terrorism The Group Compliance Charter sets out the guiding • Prevention of market abuse principles of the Compliance function within the Quintet Group. It defines the mission statement, • Monitoring of personal transactions key roles and responsibilities, governance and • Protection of the integrity of the financial organizational principles of the Compliance function. instruments markets • Protection of customer, investor and The following primary Compliance policies, consumer interests guidelines and standards – available via the Quintet • Observance of professional secrecy Luxembourg website – are applicable across Quintet Private Bank: • Avoidance and management of conflicts of interests • Compliance Charter • Prevention of the use of the financial • Compliance Policy sector by third parties to circumvent their regulatory obligations • Code of Protection of Whistle Blowers • Management of compliance risks related to • Conflict of Interest Policy cross-border activities • Conduct of Business Policy • Promotion of ethics and professional conduct • Code of Conduct (codes of conduct, Compliance manuals) • Anti-corruption and Bribery Policy • The fight against fraud (internal and external) • Cross-border Policy and corruption • AML Group Standard • Monitoring of complaint handling • Group Investor Protection Policy • Involvement in the new products approval • Market Abuse Policy process • Policy Relating to the Exercise of Mandates • Taking actions against internal or external by Employees fraudulent behavior and breaches of discipline 50 Via various compulsory training sessions, every Quintet employee has been made fully aware of their role in the fight against money-laundering and terrorism financing. 2020 Annual Report2020 Annual We add security and reduce worry

Our clients prize efficient access to liquidity to fund their future, ideas that will make their wealth grow and experts who will guide them. With the freedom to seize a world of opportunities, they enjoy the peace of mind that comes with knowing their partner is as solid as a rock – with a strong shareholder, a robust capital base, ECB regulated and a commitment to delivering on every promise we make. C O N TA C T INFORMATION

QUINTET PRIVATE BANK (EUROPE) S.A.

43, boulevard Royal L-2955 Luxembourg T: +352 4797-1 F: +352 4797-73900 [email protected] www.quintet.com R.C. Luxembourg B 6395

PRIVATE BANKING

52 PRIVATE BANKING UHNWI SERVICES 43, boulevard Royal 43, boulevard Royal L-2955 Luxembourg L-2955 Luxembourg +352 4797-2099 +352 4797-3135

GENERAL DEPARTMENTS

2020 Annual Report2020 Annual Corporate Center Support +352 4797-3453 Human Resources +352 4797-3906 Legal +352 4797-3113 Finance +352 4797-2987 Tax +352 4797-2987 Corporate Communications +352 4797-2658 Risk +352 4797-3959 PROFESSIONAL CLIENTS

GLOBAL MARKETS

Money Markets +352 2621-0311 Forex +352 2621-0333 Bullion +352 2621-0355 Repos & Securities Lending +352 2621-0322 Fiduciary Deposits +352 2621-0344 Execution Desk Money Market +352 2621-0144 Fixed Income +352 2621-0133 Listed Products (Equities, Derivatives, ETFs) +352 2621-0211 Third-Party Funds +352 2621-0222 53 Group Structured Solutions +352 2621-0233 Business Management & Financial Institutions +352 4797-2551

AS&FIM – BUSINESS DEVELOPMENT

Business Development Fund Solutions Desk +352 4797 3839 Business Development Inter-Bank & Insurance Companies Desk +352 4797 4545 Business Development Financial Intermediaries (FIM) Desk +352 4797 2496

AS&FIM – CLIENT RELATIONSHIP MANAGEMENT Report2020 Annual

Client Relationship Management +352 4797-2495

MISCELLANEOUS myQuintet +352 4797-2500

KREDIETRUST LUXEMBOURG S.A.

88, Grand Rue Asset Management +352 4797-4592 L-1660 Luxembourg Legal & Risk Management +352 4797-3615 T: +352 4797-3822 Fund Structuring & Domiciliation +352 4797-4550 F: +352 4797-73930 Investment Research +352 4797-4565 R.C. Luxembourg B 65 896 Private Equity +352 4797-3459 QUINTET PRIVATE BANK (EUROPE) S.A.

ASSET SERVICING & FIM FINANCIAL INSTITUTIONS +352 4797-2316 Global Markets +352 4797-2551 [email protected]

BRANCHES & SUBSIDIARIES

BELGIUM BANQUE PUILAETCO PUILAETCO LUXEMBOURG 46, avenue Herrmann Debroux 163, rue du Kiem 54 B-1160 Brussels L-8030 Strassen +32 2 679 45 11 +352 47 30 251 www.puilaetco.be www.puilaetco.lu

DENMARK NETHERLANDS QUINTET DANMARK INSINGERGILISSEN Sankt Annae Plads 13, 3 tv Herengracht 537 NL-1017 BV Amsterdam 1250 Copenhagen C +31 20 521 5000

2020 Annual Report2020 Annual +45 33 34 3580 www.insingergilissen.nl www.quintet.dk

SWITZERLAND GERMANY QUINTET SWITZERLAND MERCK FINCK Bahnhofstrasse 13 Pacellistrasse 16 CH-8001 Zurich D-80333 Munich +41 44 914 6000 +49 89 21 04 16 52 www.quintet.com/en-ch www.merckfinck.de UNITED KINGDOM LUXEMBOURG BROWN SHIPLEY QUINTET LUXEMBOURG 2 Moorgate 43, boulevard Royal London L-2955 Luxembourg EC2R 6AG +352 47 97 1 +44 207 606 9833 www.quintet.lu www.brownshipley.com QUINTET PRIVATE BANK 43, BOULEVARD ROYAL L-2955 LUXEMBOURG T: +352 47 97-1 [email protected] WWW.QUINTET.COM