WEALTH & TAX PLANNING

Transcription

1 WEALTH & TAX PLANNING YOUR WEALTH, YOUR FUTURE

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3 TABLE OF CONTENTS Preserving and growing your wealth at Julius Baer 2 What our clients have in common: individuality and high expectations 3 How we secure your interests with unbiased and holistic advice 4 What sets us apart: experience and specialist knowledge 5 How to get a better solution through integrated coordination 6 Wealth & Tax Planning: an overview of our services 7 Financial planning and wealth overview 9 Taxation 10 Relocation 11 Pension 13 Succession 14 Trust and other fiduciary services 15 Philanthropy 16 Contact and pricing information 19 This brochure contains general information complemented by individual case studies to provide you with practical insights into a variety of situations involving our clients and their expectations. You will find information on various subjects related to financial planning including wealth overviews, taxation, relocation, retirement and succession, trust and other fiduciary services and philanthropy. 1

4 PRESERVING AND GROWING YOUR WEALTH AT JULIUS BAER Julius Baer is the leading private banking group in Switzerland, whose roots date back to the nineteenth century. Our success stems from a distinctive client-orientated advisory approach. We carefully listen to you to be able to understand your specific personal goals, before presenting you with innovative and targeted private banking services and solutions. Tradition and innovation Our heritage is an ongoing reflection of our past and influences how we conduct our business today. Our passion and dedication in serving our clients is as strong as ever. In keeping with Julius Baer s visionary spirit, selective acquisitions have been made over the years to augment our current business and strengthen our resources. We maintain a particular affinity to Switzerland and the Zurich financial centre where our head office is located. Our presence in all the major financial centres in some 50 locations and 25 countries in Europe, the Middle East, Latin America and Asia ensures proximity to all our clients. Julius Baer follows three core values: Care, Passion and Excellence. We consistently apply our professional knowledge, profound market expertise and broad product and service range to offer you optimal, independent and objective financial and investment advice centred around your concerns, wishes and requirements. Client satisfaction is the ultimate meas - ure of our success. Wealth & Tax Planning is a fixed component of Julius Baer s integrated wealth management strategy. The incorporation of comprehensive wealth and tax planning solutions into long-term wealth management ensures that you and your family benefit from our holistic and unbiased advisory concept. We work with you to plan ahead and improve the performance and security of your wealth so that you can look forward to your future life phases with confidence. The following pages provide an insight into our values, specialist knowledge and services. Whether you are in Switzerland or anywhere else in the world welcome to Julius Baer! 2

5 WHAT OUR CLIENTS HAVE IN COMMON: INDIVIDUALITY AND HIGH EXPECTATIONS Individual life planning is not a one-off exercise. Personal circumstances, requirements, expectations and desires can change over time. It is not unusual for people with a cosmopolitan lifestyle to feel at home in more than one location. At home anywhere in the world For example, someone with a multi-layered international asset portfolio or a participation in a business has different needs and challenging and complex requirements. Whatever your current life situation, it is beneficial and advisable to take the time to think about your future plans and goals and to be clear on the direction you could potentially take. Ask yourself: what is my current situation? Where will I be based in the future? What other issues and short-term goals are important to me? There are bound to be many other questions applicable to you and your life situation over the long term. Whatever your goals may be, we will listen to you carefully and show how meticulous planning can help you achieve them. Any other factors which can help you protect and organise your wealth on the way to achieving your goals will also be considered throughout our unbiased advisory process. Comprehensive and detailed analysis is essential to ensure that your wealth remains secure for you, your family and next generations. 3

6 HOW WE SECURE YOUR INTERESTS WITH UNBIASED AND HOLISTIC ADVICE Open product and service platform Our open product and service platform enables you to benefit from an unbiased selection of the best products and external providers available on the market, as well as objective financial and wealth planning guidance. We combine our in-house financial and wealth planning expertise with the specialist knowledge of well-known external specialists. The access to our open platform not only offers you a comprehensive range of innovative solutions, but also tailor-made solutions suiting your financial requirements and personal situation. Our use of a global network of external specialists also enables you to benefit from extensive countryspecific and cross-border expertise. These external experts along with products are carefully evaluated and selected through a comprehensive due diligence process. As a result of our (business) approach, you, our client, benefit from advantageous conditions from our external providers. A personal relationship with our clients has many dimensions. Trust, discretion and preserving personal wealth are our foremost priorities. Creating and maintaining a long-term relationship based on trust is of the utmost importance to us. In many cases, we have known our clients and their families for several generations. We never restrict ourselves to a limited snapshot view of your personal wealth situation; instead we incorporate every relevant aspect, so that we see the full picture. Our advisory process always takes a forward-looking approach with an emphasis on sustainability throughout your entire lifecycle. We ensure proper implementation of the appropriate wealth planning solution during this process. Our internal specialists are based in locations around the globe, and work in close collaboration with external experts selected by our clients. Our local presence enables us to be close to you. It also ensures detailed knowledge of local regulatory issues a vital requirement as today s operating conditions and laws can change at any time. 4

7 WHAT SETS US APART: EXPERIENCE AND SPECIALIST KNOWLEDGE Experience has shown us that the only constant in life is change. Complex wealth situations can be greatly affected by changing conditions, political developments and the economic situation. That is why, after defining a strategy, we remain vigilant and propose to continually and actively review the progress of the defined strategy throughout the entire lifecycle of our clients. A winning advisory approach means consistently finding the best specific solution for every challenge. A solid advisory approach also involves being able to decide when to draw on knowledge from external experts. Over the past years we have developed a global network of qualified external experts in key areas by means of an ongoing evaluation and review process. Their collaboration with our own Wealth & Tax Planning experts, who have first-class professional training and many years of experience, provides a valuable exchange of knowledge and experience for your benefit. 5

8 HOW TO GET A BETTER SOLUTION THROUGH INTEGRATED COORDINATION People who hold their wealth in different countries are bound by different laws and jurisdictions. Relocating to another country can therefore have far-reaching consequences. The aim is always the same: to preserve and grow your wealth for next generations while complying with national laws. Applying a long-term, coordinated strategy to exploit advantages while at the same time observing the legal regulations of the relevant organisations and countries as well as the optimal embedded solution within Julius Baer s banking services that is what we call integrated coordination. Long-term wealth planning through integrated coordination brings significant benefits today, tomorrow and for future generations. However, it is important to begin early to identify and explore hidden potential while preserving wealth over the long term. Our aim is to propose optimal solutions for you. Comprehensive and differentiated Our advisory concept is multi-layered and varied, because complex issues require well thought-out responses. Our advisory process basically consists of the following steps: analysis of your wealth planning situation; discussion of conceptual solutions before putting forward proposals based on a comprehensive wealth planning understanding; and proper implementation and systematic follow-up. 6

9 WEALTH & TAX PLANNING: AN OVERVIEW OF OUR SERVICES Wealth & Tax Planning at a glance* PHILANTHROPY FINANCIAL PLANNING AND WEALTH OVERVIEW WEALTH & TAX PLANNING, COMPREHENSIVE AND UNBIASED ADVICE Support for setting up and running charitable organisations or bequeathing assets to charity engagements Overview of asset portfolio and wealth planning strategy TRUST AND OTHER FIDUCIARY SERVICES Legal and fiduciary arrangements that involve transferring assets to a trusted agent CLIENT Tailor-made solutions taking your tax situation into account TAXATION Arranging for wealth to be passed on in accordance with your individual wishes Considerations when changing residence SUCCESSION Developing and preserving your wealth following retirement RELOCATION PENSION INTERNAL AND EXTERNAL SOLUTIONS * The products and services offered depend on the domicile of the client and the legal entity of Julius Baer. 7

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11 FINANCIAL PLANNING AND WEALTH OVERVIEW A wealth overview determines the status quo of all your assets and liabilities. It offers different levels of consolidation. The synopsis of your wealth status establishes a basis for general financial planning and other specialised services, including tax and succession planning, or investigating your future retirement. Systematic financial planning helps you achieve your life goals through the proper management of your wealth and the planning of your current and future situation. Life goals can include buying a home, saving for your children s education, planning your retirement or succession. Personal financial planning often provides the basis for giving detailed answers to specific technical questions. A young German entrepreneur is selling an equity stake in his company to an investor. He is married and has young children. The couple is thinking of purchasing a holiday home in France, Italy or the UK. He may eventually inherit further assets from his father who lives in Spain. Considerations: What is the total wealth of the young couple today and how could it develop in the years ahead? Is the young family financially secure in the event of an accident suffered by the breadwinner? Who inherits what, and which benefits will be paid for how long? How will the tax situation and tax liability change in the event of the sale of a stake in the company, an inheritance or the purchase of property abroad? Approach: Establish a wealth overview through a systematic analysis of the family s wealth and establish a financial plan to create an investment strategy as a basis for discussion with a Julius Baer relationship manager. As part of a financial plan, review the succession, tax and pension situation and identify possible issues. Establish the new tax situation, identify potential tax-planning solutions and suggest the involvement of one or more suitable external experts. 9

12 TAXATION Multinational families, entrepreneurs and top executives face various tax issues both personal and corporate at different times in their lives. International ties as well as the evolving economic, social and legal framework in different jurisdictions lead to evermore complex tax situations, increasing the risk of double taxation or non-compliance with local legislation. In some cases, private individuals might benefit from considerable savings in income, wealth, transaction and inheritance tax, as well as social security contributions, by structuring their wealth and income streams to take account of personal circumstances, needs and plans. We are committed to supporting you in the tax planning process by offering advice applicable to your place of residence. We will also support you by liaising with external specialists. The CEO of a successful IT company, soon to be floated on the SIX Swiss Exchange, is married and lives in Zurich. He owns holiday homes in St. Moritz and Spain and has a substantial securities portfolio with his bank. His son lives in Montreal and his daughter in Frankfurt. He intends to retire in a few years to enjoy the fruits of his enterprise, living partly abroad. Considerations: The couple pay income and wealth taxes in Switzerland. There is also a tax liability abroad relating to their property in Marbella. Income from the securities may be taxed at source in the country of origin. How can this be offset against tax liabilities in Switzerland? Would there be a tax liability on the gain resulting from the disposal of the Spanish property in Switzerland or Spain? Which taxes would arise from a future transfer of assets within the family? Approach: Review the current tax situation in Switzerland and abroad. Establish local tax planning possibilities. Analyse the wealth tax implications and the tax on the pension in the event of a change of country of residence or indicate the planning options. Review the last will and prepare a tax-optimised transfer of wealth to the next generation, for example with a tailor-made solution for the son living in Canada. 10

13 RELOCATION There are many aspects to be considered when moving to another country. The culture, language, climate and economic environment in the country of choice are at least as important as the standard and cost of living, your personal and family situation, not to mention your personal goals. The tax systems at home and abroad must be compared. For example, some countries levy an expatriation tax, which could factor into your choice of where to move. There might also be differences in marital and inheritance laws. The insurance and pension situation are also factors that should be assessed. We analyse the individual aspects of your proposed move, provide support in sourcing suitable advisors, offer advice and the necessary coordination. A manager currently working in Italy is preparing his relocation to the company s headquarters in Switzerland. His children are married and will remain in Italy with their families. He is the owner of a property but is considering selling it in the event he might move abroad. Considerations: How can his wealth be structured in order to minimise tax liabilities before and after relocation? Are the new life circumstances properly reflected in the existing succession plan or are some adaptions necessary? Would it be advisable to purchase or rent a property in the future place of residence? Approach: Acquire a general overview of the advantages and disadvantages of possible locations, so that the family has a sound basis on which to make a decision. Point out factors to be considered and things to be organised prior to the relocation. Arrange whatever is necessary with experts on site to optimise the tax, succession and retirement planning within the applicable regulatory regime. 11

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15 PENSION Retirement is a turning point in life where vital questions are raised. Many people wonder whether their assets, including any pension payments, will be enough to cover their needs after retirement. Other frequently asked questions include: Is early retirement an option? Should the pension fund capital be taken as a lump sum or as a regular payment? Whatever questions you might have, our experts are here for you to provide consistent personal advice on retirement and pension matters, with a short-, medium- and long-term perspective. As many wealthy families often hold wealth in more than one country, the answers to these questions are usually very complex and require extensive specialist knowledge of different countries. Our long-standing network enables us to actively support you in this important stage of your life. A successful and prosperous manager lives in Geneva in her own flat, which is where she keeps most of her valuable art collection. She wants to retire in five to ten years. Considerations: Is her pension properly funded? Should she opt for a lump sum or monthly allowances? Is there a viable alternative or complement to her employer s obligatory pension fund? What will her financial situation be in the near future? Approach: Prepare a wealth overview to determine the current financial situation. Review the current pension scheme and discuss supplementary pension provisions, such as the purchase of additional benefits, or suggest alternatives. Discuss establishing a comprehensive wealth overview (including succession issues). 13

16 SUCCESSION Ideally, succession planning reconciles your individual wishes regarding your estate with your family s needs. However, the situation becomes more complex when assets are held in different jurisdictions. As the heirs usually live in different countries, another level of complexity arises. When several countries are involved, it can quickly lead to higher costs, for example through taxation, and more time-consuming transactions involving the transfer of legal ownership and control of assets. However, it also provides opportunities for tax planning, as long as appropriate plans are made early on which means during your lifetime. The different aspects of planning range from testamentary provisions, including designation of will executors, prenuptial agreements, gifts made during one's lifetime, as well as usufruct contracts and other contractual arrangements, such as the establishment of a trust, a family and/or charitable foundation, and insurance contracts. The widow of an industrialist lives in Hong Kong and, amongst other things, is a major shareholder of a successful company based in Asia. She owns a holiday home in Saint-Tropez and has a substantial securities portfolio with her bank. Her son and daughter live in Vancouver with their children. The widow intends to pass on a portion of her estate to her children and grandchildren during her lifetime. Considerations: How should the real estate, bank accounts and shareholdings be transferred to the next generations? Who shall receive what part of which assets? Are some of the assets to be transferred to the children or directly to the grandchildren? Should some part of the estate be used for charitable gifts? What taxes will the future heirs incur? Could these taxes be mitigated? Approach: Set up a comprehensive wealth overview and summary of the planned succession. Create a draft will and a concept to consolidate the assets, for example, through a trust structure to achieve optimal asset management during her lifetime as well as a smooth transfer of assets in the future. Select possible local providers to implement a complex trust structure according to Canadian law for the benefit of the children and grandchildren. 14

17 TRUST AND OTHER FIDUCIARY SERVICES Sometimes a client s needs are best served by an arrangement that involves transferring assets to a trusted agent, either for a limited period or a longer time. Various legal or fiduciary arrangements can be used to entrust assets to a third party, at one end of the spectrum providing escrow services as a neutral counterpart for a particular transaction between two or more private or commercial parties, or at the other end to structure the transfer of wealth from one generation to the next, for example through the use of arrangements such as trusts, foundations or particular types of insurance policies. Often, a reason can involve considerations as to how wealth can be made available for your children or grandchildren without necessarily transferring funds to them immediately. Concerns about age, financial maturity, or simply a wish to provide security may mean that, rather than making an outright gift now, a more appropriate option might be to set up a trust, foundation or other structure with the long-term transfer of wealth in mind. The client may even prefer to retain access or control of assets for a particular period, rather than relinquishing control immediately. A wealthy foreign domiciliary resident in the UK wishes to set aside USD 10 million as a safety net to support his son and grandchildren. Current tax and wider financial considerations indicate now is a good time to transfer wealth out of his estate. However, uncertainty about his son s financial prudence or future changes of circumstance mean he wishes to set up a separate fund which can be kept in the hands of a trusted party until a later stage. Considerations: Who will be the beneficiaries? Does the client wish to reserve power over the structure? Who should make investment decisions? Is the form and location of the solution important from a tax perspective for the client? Which type of solution best meets the needs of the client? What tax or reporting obligations will arise for the various parties to the solution? Approach: Obtain suitable tax advice to avoid unexpected outcomes, both on the setup and on an ongoing basis. Determine which discretionary trust is the most suitable. Establish a framework concept of who should ultimately benefit, as well as how they should benefit, by providing guidance in a letter of wishes. Select an appropriate trustee and investment manager with experience in UK-focused trusts. 15

18 PHILANTHROPY More and more wealthy individuals are choosing to become involved in philanthropy. One option is to leave your money to a selected institution; another is to create your charitable organisation according to your own vision and be involved in its management during your lifetime. You can choose to be an anonymous donor or a publicly visible patron of a charitable, scientific or artistic project. Beyond the question of active involvement and the choice of charitable institution, there are a number of important questions relating to the legal and fiscal framework in your place of residence. The operating parameters differ widely from country to country, for both donor and beneficiary. Julius Baer has extensive experience in implementing philanthropic objectives for its clients and has its own charitable foundation. A European businessman is planning to retire in South America. Due to the fact that a family member recently fell seriously ill, he is considering using some of his wealth for charitable purposes to support medical research. Considerations: Should the donation be made to an existing charitable organisation or would he prefer to set up his own? Should the charity become active during his lifetime or after his death? If he decides to set up an independent organisation, who will manage it in the future? Should other potential donors be sought for this charitable exercise? Approach: Develop a detailed concept for a charitable entity covering administration and donations. Review possible tax savings for future donations and determine the most suitable jurisdiction in which to establish the foundation. Support the selection of local specialists to manage the project on site and thereby ensure its successful implementation. Establish and partially finance a charitable organisation during the client s lifetime to establish it as an heir in his will. 16

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21 CONTACT AND PRICING INFORMATION Further information regarding potential solutions provided by Julius Baer specialists or through external providers belonging to our global provider network can be found in booklets focusing on the following topics: Private Trust Private Foundation Private Company Private Insurance Private Fund Escrow Contact Nothing can replace a personal conversation. You can contact an advisor at Wealth & Tax Planning through your relationship manager at Julius Baer. We look forward to meeting you in person. Pricing Julius Baer will be very pleased to provide you with an initial analysis of your potential wealth planning requirements. Regardless of whether you subsequently opt for a more in-depth analysis or the implementation of specific solutions to your wealth planning whether in cooperation with our internal Julius Baer specialists or with our external partners or your personal experts Julius Baer always makes every effort to provide you with a transparent cost structure. Costs arising from wealth planning services are normally calculated according to complexity and the amount of work required. Without analysing a specific case it is not possible to publish a standard price list for all services. External partners are also obliged to care for the sound application of their cost structure. If you require more information please contact your Wealth & Tax Planning advisor. 19

22 IMPORTANT LEGAL INFORMATION Nothing in this publication constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate for individual circumstances, or otherwise constitutes a personal recommendation for any specific investor. Julius Baer recommends that investors independently assess, with a professional advisor, the specific financial risks as well as legal, regulatory, credit, tax and accounting consequences. This publication constitutes marketing material and is not the result of independent financial research. Therefore the legal requirements regarding the independence of financial research do not apply. The information and opinions expressed in this publication were produced by Bank Julius Baer & Co. Ltd., Zurich, as of the date of writing and are subject to change without notice. This publication is intended for information purposes only and does not constitute an offer, a recommendation or an invitation by, or on behalf of, Julius Baer to make any investments. Opinions and comments of the authors reflect their current views, but not necessarily of other Julius Baer entities or any other third party. Services and/or products mentioned in this publication may not be suitable for all recipients and may not be available in all countries. Clients of Julius Baer are kindly requested to get in touch with the local Julius Baer entity in order to be informed about the services and/or products available in such country. This publication has been prepared without taking account of the objectives, financial situation or needs of any particular investor. Before entering into any transaction, investors should consider the suitability of the transaction to individual circumstances and objectives. Any investment or trading or other decision should only be made by the client after a thorough reading of the relevant product term sheet, subscription agreement, information memorandum, prospectus or other offering document relating to the issue of the securities or other financial instruments. Past performance is not a reliable indicator of future results. Performance forecasts are not a reliable indicator of future performance. The investor may not get back the amount invested. Although the information and data herein are obtained from sources believed to be reliable, no representation is made that the information is accurate or complete. Bank Julius Baer & Co. Ltd., Zurich, its subsidiaries and affiliated companies do not accept liability for any loss arising from the use of this publication. This publication may only be distributed in countries where its distribution is legally permitted. This publication is not directed to any person in any jurisdiction where (by reason of that person s nationality, residence or otherwise) such publications are prohibited. External Asset Managers/External Financial Advisers: in case this marketing publication is provided to an External Asset Manager or an External Financial Adviser, Julius Baer expressly prohibits that it is redistributed by the External Asset Manager or the External Financial Adviser and is made available to their clients and/or third parties. By receiving any marketing publication the External Asset Managers or the External Financial Advisers confirm that they will make their own independent analysis and investment decisions. Dubai International Financial Centre: this publication is distributed by Julius Baer (Middle East) Ltd. It may not be relied upon by or distributed to retail clients. Please note that Julius Baer (Middle East) Ltd. offers financial products or services only to professional clients who have sufficient financial experience and understanding of financial markets, products or transactions and any associated risks. The products or services mentioned will be available only to professional clients in line with the definition of the Dubai Financial Services Authority (DFSA) Conduct of Business Module. Julius Baer (Middle East) Ltd. is duly licenced and regulated by the DFSA. Germany: Bank Julius Bär Europe AG, authorised and regulated by the German Federal Financial Supervisory Authority (BaFin), distributes this publication to its clients. This publication has been produced by Bank Julius Baer & Co. Ltd., Zurich, which is supervised by the Swiss Financial Market Supervisory Authority FINMA. Neither the legal requirements regarding the independence of investment research nor the prohibition of trading previous to the announcement of financial analyses do apply. Hong Kong: this publication is distributed in Hong Kong by and on behalf of, and is attributable to Bank Julius Baer & Co. Ltd., Hong Kong Branch, which holds a full banking licence issued by the Hong Kong Monetary Authority under the Banking Ordinance (Chapter 155 of the Laws of Hong Kong SAR). The Bank is also a registered institution under the Securities and Futures Ordinance (SFO) (Chapter 571 of the Laws of Hong Kong SAR) to carry on Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management) regulated activities with Central Entity number AUR302. This publication must not be issued, circulated or distributed in Hong Kong other than to professional investors as defined in the SFO. The contents of this publication have not been reviewed by any regulatory authority. If you have any queries concerning this publication, please contact your Hong Kong relationship manager. Bank Julius Baer & Co. Ltd. is incorporated in Switzerland with limited liability. 20

23 Kingdom of Bahrain: Julius Baer (Bahrain) B.S.C.(c), an investment firm business, which is licenced and regulated by the Central Bank of Bahrain (CBB), distributes to its expert and accredited investor clients this publication produced by Bank Julius Baer & Co. Ltd., Zurich, an institution in Switzerland under the supervision of the Swiss Financial Market Supervisory Authority FINMA. Please note that Julius Baer (Bahrain) B.S.C.(c) offers financial products or services only to expert and accredited investor clients in line with the definition of the CBB s rulebook that contains regulations, directives and rules pursuant to the CBB rulemaking powers under the CBB law. This publication may not be relied upon by or distributed to retail clients. The CBB does not take any responsibility for the accuracy of the statements and information contained in this publication nor shall it have any liability to any person for any damage or loss resulting from reliance on any statement or information contained herein. Lebanon: this publication is distributed by Julius Baer (Lebanon) S.A.L., which is a duly licenced financial brokerage company, supervised by the Capital Markets Authority. Luxembourg: this publication has been produced by Bank Julius Baer & Co. Ltd., Zurich, which is supervised by the Swiss Financial Market Supervisory Authority FINMA and is distributed by Julius Baer Investment Services S.à r.l., authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF). This publication has not been authorised or reviewed by the CSSF and it is not intended to file it with the CSSF. Monaco: Bank Julius Baer (Monaco) S.A.M., an institution approved by the Minister of State for Monaco and the Bank of France, distributes to its clients this publication produced by Bank Julius Baer & Co. Ltd., Zurich, an institution in Switzerland under the supervision of the Swiss Financial Market Supervisory Authority FINMA. Julius Baer Wealth Management (Monaco) S.A.M., an asset management company authorised in Monaco, distributes to its clients this publication produced by Bank Julius Baer & Co. Ltd., Zurich, an institution in Switzerland under the supervision of the Swiss Financial Market Supervisory Authority FINMA. Panama: this publication has been produced by Bank Julius Baer & Co. Ltd., Zurich, and is for the intended recipient only. Singapore: this publication is available from Bank Julius Baer & Co. Ltd., Singapore branch, for accredited investors only. As Bank Julius Baer & Co. Ltd., Singapore branch, has a Unit exemption under Section 100(2) of the Financial Advisers Act, Cap. 110 of Singapore (the FAA), it is exempted from many of the requirements of the FAA, amongst others, the requirement to disclose any interest in, or any interest in the acquisition or disposal of, any securities or financial instruments that may be referred to in this publication. Further details of these exemptions are available on request. This publication has not been reviewed by and is not endorsed by the Monetary Authority of Singapore (MAS). Any document or material relating to the offer or sale, or invitation for subscription or purchase, of securities or investment funds (i.e. collective investment schemes) may not be circulated or distributed, nor may such securities or investment funds be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under Section 274 or 304 respectively of the Securities and Futures Act, Cap. 289 of Singapore (the SFA), (ii) to a relevant person (which includes an accredited investor), or any person pursuant to Section 275(1A) or 305(2) respectively, and in accordance with the conditions, specified in Section 275 or 305 respectively of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. In particular, for investment funds that are not authorised or recognised by the MAS, units in such funds are not allowed to be offered to the retail public; any written material issued to persons as aforementioned in connection with an offer is not a prospectus as defined in the SFA and, accordingly, statutory liability under the SFA in relation to the content of prospectuses does not apply, and investors should consider carefully whether the investment is suitable for them. Please contact a representative of Bank Julius Baer & Co. Ltd., Singapore branch, with respect to any inquiries concerning this publication.the word independent as used in this publication does not mean that Bank Julius Baer & Co. Ltd. (the Bank ), or any asset manager or family office in Singapore which the Bank may associate with or have a connection to, is independent within the meaning of the FAA, Chap. 110 (including its subsidiary legislation and any directions, notices, codes and other guidelines issued from time to time by the relevant authority in Singapore). In particular, nothing in this publication is to be construed or implied to mean that Bank Julius Baer & Co. Ltd., Singapore branch or any person(s) or organisation(s) referred to or described in this publication (a) is able to clearly demonstrate that it does not have financial or commercial links with product providers that are capable of influencing its recommendations; (b) operates with objectivity and impartiality, and does not have any potential conflict of interest when recommending an investment product as a result of commercial or financial links with a product provider; (c) does not receive any commission or other benefit from any third party that is likely to create a bias in favour of a particular investment product, class of investment product or product provider; and (d) does not pay any commission or confer other benefit upon its representatives which may create product bias. 21

24 Spain: Julius Baer Agencia de Valores, S.A.U., authorised and regulated by the Comisión Nacional del Mercado de Valores (CNMV), distributes this publication to its clients. The relevant services and/or products mentioned in this publication shall only be provided in Spain by a Julius Baer entity authorised to provide such services/products in Spain. This publication has been produced by Bank Julius Baer & Co. Ltd., Zurich, which is supervised by the Swiss Financial Market Supervisory Authority FINMA. Switzerland: in Switzerland this publication is distributed by Bank Julius Baer & Co. Ltd., Zurich, authorised and regulated by the Swiss Financial Market Supervisory Authority FINMA. United Arab Emirates: this publication is distributed by Bank Julius Baer & Co. Ltd., Zurich, and has not been approved or licensed by the UAE Central Bank, the UAE Securities and Commodities Authority or any other relevant authority in the UAE. It is strictly private and confidential and is being issued to a limited number of sophisticated individual and institutional investors upon their request and must not be provided to, or relied upon, by any other person. Uruguay: in the case this publication is construed as an offer, recommendation or solicitation for the sale or purchase of any securities or other financial instruments, the same are being placed relying on a private placement exemption (oferta privada) pursuant to Section 2 of Law No. 18,627 and are not and will not be registered with the Financial Services Superintendence of the Central Bank of Uruguay to be publicly offered in Uruguay. In the case of any closedended or private equity funds, the relevant securities are not investment funds regulated by Uruguayan Law No. 16,774 dated 27 September 1996, as amended. The securities and financial instruments contained in this publication do not constitute a deposit with IFE Julius Baer (Uruguay) S.A. (so are not subject to the coverage under the Deposit Guarantee Fund managed by the Bank Savings Protection Corporation) and accordingly you should bear the risk of the issuer of the securities and financial instruments. If you are located in Uruguay, you fully understand English, the language in which this publication and all documents referred to herein are drafted and you have no need for any document whatsoever to be provided in Spanish or any other language. United States: NEITHER THIS PUBLICATION NOR ANY COPY THEREOF MAY BE SENT, TAKEN INTO OR DISTRIBUTED IN THE UNITED STATES OR TO ANY US PERSON. Julius Baer Group,

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26 JULIUS BAER GROUP Head Office Bahnhofstrasse 36 P.O. Box 8010 Zurich Switzerland Telephone + 41 (0) Fax + 41 (0) The Julius Baer Group is present in some 50 locations worldwide. From Zurich (Head Office), Dubai, Frankfurt, Geneva, Guernsey, Hong Kong, London, Lugano, Monaco, Montevideo, Moscow, Nassau to Singapore. 12/2014 Publ. No. PU00003EN JULIUS BAER GROUP, 2014