Structured products by Vontobel deritrade More flexibility for your clients and for you. Vontobel Financial Products (Asia Pacific) Pte. Ltd.

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1 Structured products by Vontobel deritrade More flexibility for your clients and for you Vontobel Financial Products (Asia Pacific) Pte. Ltd. 1

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3 Dear readers, Swiss strength, global outlook and an Asia Pacific perspective At Vontobel Financial Products (Asia Pacific) Pte. Ltd., a team of seasoned professionals identifies investment opportunities and products that span the globe. Vontobel Financial Products (Asia Pacific) Pte. Ltd. is a wholly-owned subsidiary of the widely respected Vontobel Group 1, family-owned since Vontobel Financial Products (Asia Pacific) Pte. Ltd. is dedicated to the needs of qualified professional investors in Singapore. «Innovation and high-quality service» In short, our counterparties benefit from our ability to customise structured financial solutions to meet their individual investment requirements. In addition, as a Swiss financial services firm, Vontobel Financial Products (Asia Pacific) Pte. Ltd. provides very extensive know-how, longstanding market experience and the highest quality standards. Anup Gupta Executive Director Head of Sales APAC Vontobel Financial Products (Asia Pacific) Pte. Ltd., Singapore anup.gupta@vontobel.com Structured Products Europe Award: «Best in Switzerland»: recognized by the renowned specialist magazine Structured Products Europe as the «Best Swiss Derivatives House 2013». Swiss derivative Awards 2014: Vontobel was once again recognised for its excellence in the category «Top Service». Thomson Reuters Extel Pan-European Survey 2013: Vontobel ranked first in all categories and thus secured the top place in the overall classification. Best in Switzerland TOP Service Bank Vontobel 14 1 In the Vontobel Group all subsidiaries of Vontobel Holding AG are consolidated. Bank Vontobel is a 100% subsidiary of Vontobel Holding AG and is authorised as a bank and a securities dealer in Switzerland and is subject to the supervision by the Federal Financial Market Regulator FINMA. Bank Vontobel does not carry on any business in Singapore. 3

4 Vontobel your partner for structured products Vontobel is currently represented with financial products offices in five different strategic locations across Europe and South East Asia, and is headquartered in Zurich. London Geneva Frankfurt Zurich Dubai Singapore Trends often develop overnight. To be able to benefit from the momentum, it is necessary to develop fitting products in a very short time. Demands in terms of quality and cost efficiency as well as orientation towards individual client requirements are high. Financial Products facts and figures has a very strong and experienced global team featuring more than 70 very seasoned and knowledgeable specialists in the advisory & distribution, risk management (equity & fixed income) and engineering & development fields. one of the leading houses for structured products in Europe. winner of multiple awards, which underlines our innovative and comprehensive range of products and services. aims to structure innovative and customised financial instruments to generate true added value for our counterparties. Vontobel deritrade four steps to create and trade tailor-made financial solutions. 4

5 Vontobel tradition, flexibility, soundness Vontobel s Investment Banking business unit specialises in the origination and distribution of derivatives and structured products, as well as in market making for such securities. 1 Bank Vontobel 2 is a leading issuer of structured products Bank Vontobel, founded in 1924, combines its strengths in the fields of private banking, investment banking and asset management at 21 locations. Headquartered in Zurich, Vontobel is an independent Swiss private bank that stands for the values that influence the Swiss success model: professionalism, soundness, trustworthiness, quality and precision. This is also manifested in, among other things, its good credit rating and high BIS tier 1 capital ratio. Vontobel Financial Products 3, part of Investment Banking, «We want to help you find the right product to match your market opinion.» has for years been a leading provider of certificates in both Switzerland and Germany. Bank Vontobel is among the top three issuers in the Swiss market. The Financial Products division offers counterparties the entire valueadded chain adapted to individual requirements. In this respect, Vontobel strives to achieve the highest quality in its products and advisory services. Its particular strengths also include innovation, attractive and fair prices, high trading quality and speed of implementation. The Vontobel Group 4 is a leading address for banks and asset managers when it comes to the placement of structured products on underlyings from a wide variety of asset classes. Its excellent client orientation has already earned the bank many awards such as the Swiss Derivative 14 TOP Service Awards «Top Service» award. Bank Vontobel It takes proven performance to gain trust During turbulent times on the stock market, you want a reliable partner with longstanding experience. You want to capitalise on innovative product ideas quickly and efficiently. You expect liquidity, transparency and first-class service as prerequisites for your structured investment solutions. Longstanding expertise and continuity Our advisors and product experts have numerous years of experience and stand out for their high level of skill and continuity in the structured products business. We distinguish ourselves through our profound expertise in creating, distributing and making a market for structured products. We can provide you with first-class solutions combined with top-notch service. We care about transparency Turbulent times illustrate just how crucial an informational advantage can be. That is why we place great importance on transparency. We were the first issuer on the Swiss market to introduce historical performance simulations and detailed risk classifications for our products. Make use of our range of services including dynamic fact sheets, which provide extensive information about a given product s performance over its term to maturity. Proven track record Vontobel is one of the leading issuers of structured products, with roughly 75,000 products outstanding (~7 bn USD). Market share all products 21.49% Vontobel 21.37% UBS 19.68% Zurich Kantonalbank 16.47% Various 09.20% Deutsche Bank 07.73% Julius Baer 04.06% Goldman Sachs Market share (by turnover) in Switzerland from January 2008 May Source: Derivative Partners Research AG 1 Important Notice: This is a general description of Vontobel Group s businesses which are carried out in jurisdictions outside Singapore. Such businesses are not currently carried out in Singapore. 2 Bank Vontobel is authorised as a bank and a securities dealer in Switzerland and is subject to the supervision by the Federal Financial Market Regulator FINMA. Bank Vontobel does not carry on any business in Singapore. 3 Vontobel Financial Products Ltd is a 100% subsidiary of Vontobel Holding AG, is a company established under the laws of the Dubai International Financial Centre and has its principal place of business in Dubai. 4 In the Vontobel Group all subsidiaries of Vontobel Holding AG are consolidated. Bank Vontobel is a 100% subsidiary of Vontobel Holding AG and is authorised as a bank and a securities dealer in Switzerland and is subject to the supervision by the Federal Financial Market Regulator FINMA. Bank Vontobel does not carry on any business in Singapore. 5

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7 Vontobel deritrade aligned with your internal processes Depending on how your business is set up organisationally, Vontobel deritrade can be used in different ways. You can individually determine the interaction of Vontobel deritrade between product manager(s) (PM) and relationship manager(s) RM. Vontobel deritrade offers unlimited access control in order for you to make the best use of it depending on your individual needs. Option 1: Full access by the product manager (PM) and no access by relationship manager (RM) Exchange of information Simulation & Trade Option 1 Relationship Manager Product Manager Vontobel deritrade Option 2: Full access by the product manager (PM) and limited access by relationship manager (RM) Exchange of information Simulation & Trade Option 2 Relationship Manager Product Manager Vontobel deritrade Simulation Option 3: Full access by the product manager (PM) and full access by relationship manager (RM) Exchange of information Simulation & Trade Option 3 Relationship Manager Product Manager Vontobel deritrade Simulation & conclusion 7

8 Vontobel deritrade added value for you Structured products enable access to a wide range of themes and investment trends. Thus, for example, it is possible to invest in the stock market of a specific industry within a chosen region. Structured products also make investing in the commodities, interest-rate and foreign-currency sectors possible. There are suitable products for different market expectations. Today, investors increasingly expect product solutions that are tailored perfectly to their personal needs, yield targets «Our deritrade platform creates added value for you.» and appetite for risk. deritrade, our online platform developed by Bank Vontobel 1, makes this kind of customisation to individual needs possible. On the one hand, it makes the strengths of structured products tangible. On the other hand, a new structured product can be launched within seconds. This allows for flexible and fast reactions to different market conditions. Through our open platform, the option embedded in the product will be priced by different option providers and our system selects the best pricing within a couple of seconds. Vontobel open deritrade thus identifies the most attractive option component among different option providers. How it works Vontobel deritrade product The Vontobel Group is the issuer and market maker and ensures the quality of the product Vontobel Structured Products Option Provider Investment Component Option Provider Vontobel Option Provider Option Component Best Option Price... The Vontobel Group 2 : is the issuer is the trading counterparty provides the post-subscription option to increase or decrease your position assures the product quality 1 Bank Vontobel is authorised as a bank and a securities dealer in Switzerland and is subject to the supervision by the Federal Financial Market Regulator FINMA. Bank Vontobel does not carry on any business in Singapore. 2 In the Vontobel Group all subsidiaries of Vontobel Holding AG are consolidated. Bank Vontobel is a 100% subsidiary of Vontobel Holding AG and is authorised as a bank and a securities dealer in Switzerland and is subject to the supervision by the Federal Financial Market Regulator FINMA. Bank Vontobel does not carry on any business in Singapore. 8

9 Vontobel deritrade multi-issuer platform 4 Vontobel deritrade enables quick creation of perfectly fitting products. The further development into a multi-issuer platform, i.e. the possibility of acquiring structured products from selected third-party issuers via Vontobel, makes comparing products even easier and more transparent for you. Use Vontobel deritrade and select the variation that best fits your internal procedures. Paradigm change for investors and issuers The Vontobel deritrade multi-issuer platform 4 1. Selection Entering parameters Jurisdiction Your investment idea 2. Tailoring Calculating process Bond components Issuer Vontobel or Issuer Vontobel with COSI or Issuer Vontobel with COSI and reference bond Vontobel deritrade calculates your product Option component Open deritrade Vontobel Provider 1 Provider 2 Provider 3 Provider 4 Provider 5 Third-party issuer A calculates your product Third-party issuer B calculates your product Third-party issuer C calculates your product Third-party issuer D calculates your product 3. Simulation Prices of all issuers 1 Vontobel price: (i. e %) Price 99.80% Price 99.65% No price Price 99.90% 4. Comparing and concluding Your selection New multi-issuer platform now combines all the advantages Gives the investor the chance to get several product offers on one platform which can be compared on screen. Transparency for the investor will increase significantly. Similar meta-platforms do not issue the certificates themselves. This deritrade solution offers the entire value chain and product lifecycle. 4 The multi-issuer platform is currently not available to persons in Singapore and may not be accessed or used by any persons in Singapore. The multi-issuer platform is currently only available in Switzerland. 9

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11 Vontobel deritrade versatile, flexible, fast Investment needs, market expectations, risk profiles and envisaged returns are just as individual as each investor. To meet those needs, Vontobel has developed Vontobel deritrade a sophisticated internet-based trading platform for structured products. Professional financial service providers can design, issue and manage their own customized structured products tailored to the needs of their clients online. With Vontobel deritrade you can react quickly to investment needs and opportunities and be more flexible. Four steps to create and trade your own customised structured product: 1 Selection 2 Tailoring 3 Pricing 4 Trade «For a qualified investor, the minimum size per transaction (Note) is only SGD 70,000 or equivalent.» Choose from a universe of over 800 underlyings and more than 100 currency pairs. 11

12 1 Selection You are looking for: You know the structure you want, but are not sure of which underlying you want to choose? deritrade offers: Let yourself be inspired by the matrix which offers daily indicative prices for a wide product range. The search is simplified by new filter options and easy access points. 2 Tailoring You are looking for: Would you like to see an offer for an ELN or an FCN? Or would you like to know how the price of a product changes if you select a different parameter such as the barrier or the maturity? deritrade offers: Among other things, Vontobel deritrade offers you an individual selection of the following parameters: Underlying Barrier Currency Coupon Amount Fixing date Strike price Barrier monitoring Coupon frequency 12

13 3 Pricing You are looking for: Would you first like to obtain a simulation for the current price level and then configure your product in accordance with your requirements? deritrade offers: Simulation of as many different variations as needed. The simulation takes only a few seconds. The indicative term sheet is immediately generated. Open deritrade Vontobel deritrade identifies the most attractive option component among its different option providers. Vontobel Structured Products Option Provider Investment Component Option Provider Vontobel Option Provider Option Component Best Option Price... 4 Trade You are looking for: Are you satisfied with the result? Before concluding a transaction, you compare the different price offers for the product. deritrade offers: The product you selected can now be traded and issued with a click of the mouse. Select the timing to suit your requirements. Conclude the transaction directly online. You automatically receive all details of the trade, the final term sheet and confirmation by . 13

14 Vontobel deritrade support during the entire product cycle Vontobel deritrade supports you during the entire lifecycle of the product. Thanks to the high level of automation we grant a superb after-sales service as well as an optional buy-back. Selection & Transaction As soon as you have chosen a product and traded on Vontobel deritrade, you will automatically receive all the relevant documentation about your trade. For our Vontobel deritrade users we offer a buy-back functionality which allows an interactive request for bid and offer prices of selected and previously issued products on deritrade. Added Value As soon as a product comes close to its expiry, Vontobel deritrade will send you an and provide you with all the important/relevant information auto matically. This will ease your planning and your investment process. All product data remains in the Vontobel deritrade archive after expiry so that you can retrieve the information at your convenience. Trade Confirmation Expiry Notice 14

15 Become a user of Vontobel deritrade You can benefit from our issuance platform and customise fitting investment solutions with a high degree of automation. Using Vontobel deritrade is simple and uncomplicated. Your route to Vontobel deritrade To start, you complete an opening application if desired, together with our Vontobel specialists. We then process the most important key data on your company, including the type of use desired and which persons in your company are to be granted access and what type of access may be granted. You will receive a user contract with the terms and conditions of use of deritrade. Once the user contract is signed you will automatically be authorised to use the Vontobel deritrade platform as a participant. After receiving your personal log-on data, you can activate your user profile. The entire spectrum of the platform is now at your disposal and you can start to simulate and trade. We remain at your service Once you have become a deritrade user and are deve loping your products and ideas independently, we are happy to remain at your service. Our service covers aspects such as the provision of product ideas in the current environment, simulation and help with product comparison. You are also very welcome to participate in our individual training sessions for products and systems. In this context, we will show you, for example, how you can create a structured product, which product suits which market opinion and how you can use volatility or change redemption scenarios. Easy process: Sign Contract Confirm Users Get started Go Live Sign Contract Terms & Conditions, user agreement, KYC requirements Confirm Users Provide users details (name, , access rights, etc.) Get Started We provide you with the log-in credentials Go Live Start simulating & trading 15

16 Vontobel deritrade facts & figures In 2008, Vontobel deritrade was initially developed for internal use only. Given the increasing need for flexibility, Vontobel also opened the interactive platform to authorised financial institutions. Today, Vontobel deritrade is an established tool in the issuance business with some 800 clients and more than 5000 users in five countries Multi-issuer platform 4 the complete selection The multi-issuer platform can be used to design tailor-made products in real time. It also enables the comparison of offers from several issuers. This creates even greater transparency as regards product selection deritrade expanding into UK and Singapore 2011 Reference bonds management of the debtor risk now possible 5 The client advisor can choose from government or corporate bonds from various sectors. With COSI collateralisation, the Vontobel issuer risk is almost completely eliminated Open deritrade all option components at short notice Prices for the corresponding option components are obtained from several option providers and compared within seconds. Structured products can be developed on the basis of the best price Introduction of Vontobel deritrade a vision becomes reality Numerous underlyings, diverse currency pairs and many product structures provide clients with a tool for tailor-made products. Product and investment ideas, together with the corresponding term sheets, are available within seconds Birth of the idea deritrade was developed by our Vontobel structuring team to automate the price request process. 4 The multi-issuer Platform is currently not available to persons in Singapore and may not be accessed or used by any persons in Singapore. The multi-issuer Platform is currently only available in Switzerland. 5 Reference Bonds and COSI are not available in Singapore 16

17 Performance creates trust «Preserving traditions, embracing change» The Vontobel Group 1 The Vontobel Group combines the expertise of an independent Swiss private bank with the innovative strength of an active international asset manager and supplier of structured products. Our integrated business model with the three business units Private Banking, Investment Banking and Asset Management ensures close cooperation and allows us to successfully pool our expertise and resources for the benefit of our clients and cooperation partners. We pursue a systematic interbusiness market strategy both in our Swiss home market and our focus markets. Our integrated business model includes private banking, investment banking and asset management. The Vontobel business model 4 Investment Banking The Vontobel Group was founded in Zurich in 1924 Each day, around 1,400 Vontobel employees worldwide create sustained added value for our clients. Whether they are in the heart of Zurich, New York, Hong Kong or Frankfurt employees in 21 international locations identify trends and subsequently create innovative investment strategies and products. Our profitable growth is based on proven competencies, enhanced efficiency and profitability. Asset Management Private Banking Total client assets (in CHF bn) Assets under management 48.7 Custody assets Structured products outstanding Other client assets Shareholders equity (in CHF billions) 1.6 BIS tier 1 ratio (in %) 26.1 Cost 2 /income ratio (in %) 79.4 Headcount 1,360 Moody s Rating Bank Vontobel AG 3 : A2 The future is founded on tradition 1924 Brokerage firm founded 1940 Introduction of private banking services 1960 New wealth management units established 1980 Asset managers begin serving private and institutional clients 1984 Establishment of Vontobel USA Inc. in New York 1986 Vontobel Holding listed on Zurich stock exchange 1999 Opening of offices in Frankfurt and Cologne 2007 Establishment of Vontobel Europe SA in London 2008 Asset Management opens office in Hong Kong 2009 Private Banking opens office in Hong Kong 2012 Establishment of offices in Singapore Facts and figures as of In the Vontobel Group all subsidiaries of Vontobel Holding AG are consolidated. Bank Vontobel is a 100% subsidiary of Vontobel Holding AG and is authorised as a bank and a securities dealer in Switzerland and is subject to the supervision by the Federal Financial Market Regulator FINMA. Bank Vontobel does not carry on any business in Singapore. 2 Operating expense, excl. value adjustments, provisions and losses 3 Bank Vontobel AG is authorised as a bank and a securities dealer in Switzerland and is subject to the supervision by the Federal Financial Market Regulator FINMA. Bank Vontobel AG does not carry on any business in Singapore. 4 Important Notice: This is a general description of Vontobel Group s businesses which are carried out in jurisdictions outside Singapore. Such businesses are not currently carried out in Singapore. 17

18 How to reach us Our team is always at your disposal. You can always reach us at the following address. Battery Road Marina Bay Reservoir Bayfront Avenue Maxwell Road Cross Street One Raffles Quay Marina Bay Financial Centre (MBFC) Vontobel Financial Products Singapore (Asia Pacific) Pte. Ltd. Conference Hall 8 Marina View Asia Square Tower 1 Robinson Road Shenton Way Raffles Quay Marina Boulevard Marina Station Road Central Boulevard East Coast Pkwy Marina Bay Sands Vontobel Financial Products (Asia Pacific) Pte. Ltd. 8 Marina View Asia Square Tower 1 Level Singapore Phone vfpsingapore@vontobel.com

19 Legal information The Vontobel Group comprises of Vontobel Holdings AG and its subsidiaries which include Vontobel Financial Products (Asia Pacific) Pte. Ltd. ( Vontobel Asia Pacific ). Vontobel Asia Pacific is a limited liability company incorporated under the laws of Singapore. It carries on business in providing financial advisory services in Singapore only to institutional investors as defined in the Securities and Futures Act (Chapter 286 of Singapore) ( SFA ) read with the Securities and Futures (Prescribed Specific Classes of Investors) Regulations ( SF(PI)R )). Persons other than institutional investors as defined in the SFA read with the SF(PI)R are not the intended recipients of the information in this document and must not act upon or rely upon any of the information in this document. The contents of this document are for informational purposes and general circulation only, and do not constitute or form financial advice or part of any offer for sale or subscription or invitation or solicitation of any offer to buy, subscribe, or dispose of for any securities and/or investment products and/or financial instruments in Singapore or elsewhere or an invitation or solicitation in relation to services provided by entities within the Vontobel Group which do not carry on business in Singapore nor should it be construed as an offer or solicitation to provide banking or financial services mentioned in this document and will not form the basis or part of any contract. The contents of this document do not take into account the specific investment objectives, financial situation or particular needs of any particular person, and advice should be sought from a financial adviser regarding the suitability of any product before a commitment is made for purchase of any product. This document is not investment research or financial analysis as these terms are defined in applicable regulations and has not been prepared by a research analyst. All our service offerings shall always be made in accordance with the applicable rules and regulations and the Vontobel Group does not offer all of the described products and services in every location. Therefore, nothing in this document shall be construed as a public offer of products and/or services in a location where the local entity does not hold the licenses and internal permissions for said products/services. This document is not intended to be distributed to Retail Clients or potential Retail Clients. No part of this document may be reproduced, distributed or transmitted in any manner without prior written permission of Vontobel Asia Pacific. This communication or the manner of its distribution may be restricted by law or regulation in certain countries. Persons into whose possession this document may come are required to inform themselves about, and to observe any such restriction. None of the companies within the Vontobel Group nor any of their respective directors, officers or employees accepts any responsibility or liability whatsoever for any expense, loss or damages arising out of or in any way connected with the use of all or any part of the information contained in this document. Please note that Vontobel Asia Pacific also carries on the business of dealing in securities, pursuant to the licensing exemption in paragraph 2(a) of the Second Schedule of the Securities (Licensing and Conduct of Business) Regulations, for its own account, or an account belonging to and maintained wholly for the benefit of a related corporation, but only with financial institutions which are either (a) the holder of a Capital Markets Services licence for dealing in securities or fund management issued by the Monetary Authority of Singapore ( MAS ) or (b) a bank licensed by the MAS or (c) a merchant bank approved as a financial institution under the MAS Act or (d) a bank licensed, registered, approved or otherwise regulated under the laws of a jurisdiction outside Singapore to conduct banking business or (e) a corporation or firm licensed or registered to carry on business in dealing in securities under the laws of a jurisdiction outside Singapore. Accordingly, any independent asset manager that is not a financial institution as described above will not be able to deal in securities with Vontobel Asia Pacific but will need to do so through any of the financial institutions described above. By accepting this communication, a recipient of this document agrees to be bound by the foregoing provisions. Copyright 2014 Vontobel. All rights reserved.

20 Vontobel Financial Products (Asia Pacific) Pte. Ltd. 8 Marina View Asia Square Tower 1 Level Singapore Phone vfpsingapore@vontobel.com / DE Swiss Climate Klimaneutral gedruckt SC